Hoop embarks on new co-packing solution

Kiwi brand activation company, Hoop, has acquired the New Zealand based assets of Australasia’s largest co-packer, LJM, and embarked on its own dedicated in-house co-packing solution.

Whilst Hoop initially formed a joint venture with LJM in March 2020, the business soon realised it had the expertise and management capabilities to drive its own operation. Consequently, Hoop purchased the jointly owned local assets to launch ‘Hoop co-packing’ which is now live and operational. 

Hoop co-packing provides solutions for a range of in-house challenges that many brands face by re-working and reconfiguring their retail packaging to suit the New Zealand market.

Chris Hood, Director at Hoop Ltd says that despite operating in difficult conditions due to Covid-19, the timing felt right to purchase LJM’s assets as there was an untapped market opportunity to expand Hoop’s suite of services and drive their own co-packing operation.

“Because of the various Auckland and nationwide lockdowns last year, a large portion of our workload was put on hold. Like so many other Kiwi businesses, we were constantly reviewing how we could diversify our offer.

“An in-house co-packing solution was a natural path for us to move into, especially as we saw that many New Zealand brand owners were increasingly looking for innovative ways to promote their products on shelf with a high-quality co-packing solution. Whilst the decision to purchase LJM’s share of the assets was mutual, it means we can make quick decisions in relation to tooling and quoting of specific co-packing tasks.  It also complements the work we already do to provide brand owners with POS logistics and merchandising services as well,” says Hood. 

A large number of Hoop’s existing clients were already doing co-packing, so being able to provide a competitive solution as part of its service offering has been a positive outcome for the business.

This new development means Kiwi brands looking for co-packing solutions will be able to have their own co-packing requirements fulfilled locally instead of going offshore. 

“The New Zealand market already has some players providing co-packing offers, however with the learnings from the LJM partnership and the investment into tooling, we are able to deliver co-packing outputs at a greater speed and an even more competitive rate.

“A large percentage of brands sold to New Zealand retailers are sourced from overseas production facilities, which can pose a myriad of challenges. For example, the packaging may not suit New Zealand’s preference, so that it needs to be reworked (or co-packed) locally to meet the market requirements. That’s where Hoop co-packing comes in, as we can reconfigure packaging to ensure that it suits the local retail market,” adds Hood. 

Hoop is already working with a number of household brands for their co-packing needs, including Cadbury and Red Bull, to produce shelf-ready products, enticing displays and convenient multi packaging.

“Our vision is to be the leading ‘go-to’ co-packing provider for New Zealand suppliers. We’re incredibly proud to offer New Zealand brands a 360-degree promotional activation service and provide a one-stop-solution for all their go to market strategies. Despite these challenging times, it’s certainly a new and exciting chapter for us,” concludes Hood.

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