3 Aug 2007
On Tuesday night TV3’s Target programme analysed a variety of honey for taste, pollen count and UMF activity.

Comvita is thrilled that the consumers on the Target programme chose Comvita Active 5+ Manuka Honey as the best tasting honey.

However, while testing for activity the programme compared honeys of differing UMF activities; for example Comvita's Active 5+ was compared to a competitor’s UMF 10+.

The programme was not comparing apples with apples and hence the findings were potentially confusing for the public.

Had the programme compared honeys of the same UMF rating then the findings would have been very different and may have proven more useful in guiding consumers to making a more informed choice.  

The programme referred to pollen counts, which is an area of contention within the industry.

The amount of Manuka in the honey was analysed by testing the pollen count of each honey and comparing it to a proposed industry standard.

The programme concluded that Comvita’s pollen count of 33% meant it fell short of the proposed industry standard.

Comvita believes the pollen count method is flawed as a test for the purity of certain honey types – especially Manuka – and hence does not use it as a means of identifying unifloral honey types. This is a view shared by many people within the industry.

Unlike the nectar from the tree, Manuka pollen is not a substantial food source for bees and so they will often feed on pollen collected earlier from other plant sources and store this in the hive.

As a result other pollen may be present even in the purest of Manuka honey. This phenomena of bees harvesting pollen in the early morning from a different plant source and then returning to the Manuka trees later in the day to collect the nectar for making honey has been observed by many beekeepers.

Jim Edwards, the CEO of the National Beekeeping Association, said the NBA is working on developing methods of assuring quality and proof of origin of New Zealand honey. 

An article¹ by Waikato University’s Professor Peter Molan explains that misleading conclusions may be reached by using pollen analysis to identify the sources of honey.

“It is not possible to identify the source of a honey with certainty, and the most reliable identification is likely to come from a combination of methods,” said Prof Molan.

To ensure Comvita produces the highest quality Manuka honey, the following standard methods for testing the honey are used:

Taste
Appearance
Flavour
Total activity and non-peroxide (UMF) activity

Summary
Comvita uses stringent tests based on taste, appearance, flavour, and activity to ensure we are producing the highest quality Manuka.

Brett Hewlett
CEO
Comvita   

¹ The limitations of the methods of identifying the floral sources of honey (Peter Molan, Bee Word 79(2):59-68 (1988).
 

July 23, 2007
FDA Approval Received for Comvita’s Honey Wound Dressing

A patented advanced wound care dressing by Comvita Limited has become the first honey-based product for the management of wounds and burns to receive marketing clearance from the US Food and Drug Administration (FDA).

FDA approval comes at the same time as Comvita wraps up the acquisition of Australian based Medihoney. These two major events represent the culmination of a sustained strategy to secure a leadership position internationally in the honey-based wound care market.

Comvita’s US partner Derma Sciences today announced it received the FDA clearance to market and sell the Comvita-owned API-MEDTM Active Manuka Honey Absorbent Dressing in the United States.

Comvita CEO Brett Hewlett says the FDA approval heralds an important milestone for Comvita’s burgeoning wound care business as it secures its place in a multi-billion dollar market.

“The global advanced wound care market is worth more than US$4 billion, of which the US makes up US$2.3 billion. An ageing population and increase in diabetes will continue to be strong drivers for this fast growing category,” he says.

“Derma Sciences’ US approval allows us to further confirm our leadership position in honey-based advanced wound care products. Our early investment in intellectual property, research and brand development will allow us to take a strong position in the rapidly growing antibacterial dressings category. What’s more, Derma Sciences has allowed Comvita to establish a distribution network in North America and to increase our sales prospects in that market.”

Mr Hewlett says FDA approval means Comvita’s revenues from its licensing agreement with Derma Sciences in the US will begin to come on stream later this year as they role out a whole range of new products that have been waiting in the pipeline for some time now.

“Our investment in our medical business has also stepped up accordingly as we seek to maximise long-term shareholder value from this success. Shareholders should expect to see the first positive contributions to earnings per share from the advanced woundcare part of our business in the 2008 financial year.”

Comvita has a 14 per cent stake (10 per cent fully diluted) in publicly owned Derma Sciences (code DSCI), a marketer of advanced wound care products. Active Manuka honey has an antibacterial effect that speeds up the healing process of wounds and burns1.

The FDA approval follows Derma Sciences’ recent clearance from Health Canada to market and sell Comvita’s line of API-MEDTM Antimicrobial Dressings with Active Manuka Honey in Canada. Active Manuka Honey and other Leptospermum honey-based wound care products currently marketed under licence by Comvita are already approved as antimicrobials in Europe, Canada, Australia and New Zealand.

Derma Sciences CEO Ed Quilty says the company has secured its leadership position by being the first in North America with a honey-based wound care product.

“We should be assured the leadership position in this significant market thanks to Comvita’s dominance in the procurement of Manuka honey, its advanced processing systems and patents for the use of honey in wound dressings, coupled with our exclusive US marketing rights. We are confident our non-toxic, naturally-derived product, with its large and growing evidence base, will be readily adopted by clinicians who are calling for easy and effective products to use in all phases of wound healing,” says Mr Quilty.

Comvita further cemented its strategy for the medical honey business with the successful acquisition of Australian wound care specialist Medihoney on July 1.

“Medihoney will add to Comvita’s medical capability through its specialised team bringing considerable technical and regulatory expertise, existing networks and distribution channels. For example, Medihoney has an exceptional UK sales team which has successfully launched their leading wound care lines into the NZ$100 million UK antimicrobial market. Sales of MediHoney in the last 12 months were approximately $3 million and growing strongly,” says Mr Hewlett.

The majority of the world’s advanced wound care sales are attributed to the US and Europe. The acquisition of Medihoney with its coverage in UK and Europe - plus the partnership with Derma Sciences in the US - gives Comvita the ability to penetrate the world’s two largest wound care markets.

Comvita will be able to accelerate its reach into lucrative new markets such as the UK and Germany through Medihoney’s existing distribution network. Furthermore, Medihoney is licensed as a Medical Device Manufacturer and audited to ISO 13485:2003 and complies with European MDD 93/42/EEC, enabling a faster product development pipeline.

Medihoney’s R&D programme is backed by a number of published clinical studies and will complement both Comvita’s scientific and clinical research programme using Manuka honey-based dressings and its proprietary IP around the application of honey in wound dressings. In addition, Medihoney will provide Comvita with several patent filings, a number of CE marked wound care products and therapeutic skincare products sold through existing hospital and pharmacy channels.

Comvita is confident it will quickly reap the rewards of the Medihoney acquisition largely through the company’s strong offshore distribution channels and technical expertise.

“Medihoney’s distribution network and early commercialisation work in terms of regulatory approvals and IP will be of significant benefit to Comvita as we continue to grow our medical business internationally,” says Mr Hewlett.

Comvita’s $6 million purchase of Medihoney consists of AU$5.5 million in Comvita shares and AU$500,000 cash. Former owner, Capilano Honey Limited – Australia’s largest honey manufacturer - will have just over eight per cent shareholding in Comvita through the Medihoney sale.
Ends.
Visit these websites for more background on the companies referred to in this release:

www.dermasciences.com
www.medihoney.com
www.capilano.com.au

30 April 2007

Comvita Opens its Doors to the World

New Zealand natural health company Comvita has opened its first global concept store at its head office in Paengaroa, Bay of Plenty, heralding a significant step forward for the iconic Kiwi brand.

Officially opened on 20 April by Prime Minister the Rt Hon Helen Clark, the concept store model, while a retail outlet, is a place where Comvita’s customers can engage more closely with the company and its products – and ultimately showcase a taste of New Zealand to the lucrative international marketplace.

Comvita CEO, Brett Hewlett, describes the concept store as the hard proof of Comvita’s dedication to global development and an integral part of its transition from an export company to a global organisation.  

“The new concept store symbolises a fundamental change in our pace of growth and our global aspirations.  We are ready to truly take our success story to the world and will be rolling out other concept stores, showcasing our products, brand and natural New Zealand in our key hubs -- the UK and Hong Kong.”

It is this global vision that has contributed to Comvita’s exporting success. In 2006 the company was awarded the New Zealand Trade & Enterprise Biotechnology Exporter of the Year Award and, with recent strategic acquisitions firmly under its belt, is a star definitely in the ascendant.

“Last year Comvita’s exports grew 39 per cent, with two thirds of our sales going offshore. It seems fitting to celebrate our investment in the way we market ourselves off shore during Export Year 07,” said Mr Hewlett.

One of the primary functions of the global concept store is to educate people about health and wellbeing in general through educational in-store signage, staff including trained naturopaths, reading areas with health  publications and educational videos. The ‘Wellness Centre’ is expected to a big draw card for tourists visiting the Bay of Plenty region.

“There is more to Comvita than what you see on the shelves however. Behind the scenes our staff are constantly working to bring New Zealand, and the world, leading natural healthcare products through cutting-edge research and development. A great example of this is our development of Manuka honey technology, something that is highly regarded in our key export markets,” says Mr Hewlett.

Comvita used the opening of the first global concept store to also reveal its new brand, which follows an extensive design process to redefine its position, values and what the company stands for.

“As we move the business into our next phase of growth and development it is important that our brand encapsulates our changing face.  At Comvita we believe in the power of brands and in fact we are probably better known overseas than here at home.”

An ‘evolved’ Comvita logo is one of its most obvious branding changes.  

“The company’s reputation and image is projected around the world through the brand’s badge or logo.  Our logo has been refreshed into a strong, legible and modern look without losing its rich heritage and Kiwi influence.

“I was encouraged to hear someone say recently that Comvita has been acting global for a long time, but now we look global.  That’s just the image we need to reflect to secure our place offshore,” he says.

The new Comvita branding will be integrated into the business over time, starting with is head office and concept store signage and marketing collateral. An internal brand programme is also underway, educating and engaging Comvita staff worldwide in the vision and values that underpin the Comvita brand.

At the ceremony Mr Hewlett also took the time to acknowledge the support of New Zealand Trade &Enterprise and Technology New Zealand. He referred to the Prime Minister’s position on building a sustainability platform for New Zealand.

“At Comvita sustainability is more than a buzz word. We were adopting sustainable business practices long before it became trendy and we are committed to growing our business in a sustainable way.”

Comvita’s sustainability ethos is carried through in the concept store design including recycled rubber used on the floor, cork walls and natural riverstone features. The building is GreenGlobe benchmarked – a global tourism industry standard recognising sustainable waste management, energy efficiency and environmentally-friendly practices.
 
Ends