By EMA Head of Membership and Export Simon Devoy

THE FACTS

• New Zealand exporters are reassessing their approach to the US market due to increased tariffs.
• Experts advise focusing on specific states and segments rather than tackling the entire US market.
• Success requires significant investment, strategic planning, and finding loyal niche audiences.

With the recent announcement of increased tariffs by President Trump, many New Zealand exporters are reassessing their approach to the US market. To understand how Kiwi businesses can navigate these shifting trade dynamics, I spoke with three exporters who are already selling into the United States: Joseph Harawira, founder and managing director of Wai Mānuka; Louise Clayton, director of international business at AFT Pharmaceuticals; and Pic Picot, founder of Pic’s Peanut Butter.

These exporters will also be sharing their experiences at Global X, an upcoming event in Auckland on September 3 hosted by the Employers and Manufacturers Association, which brings together New Zealand businesses to explore international market opportunities and challenges.

Strategic focus over blanket expansion

A common thread is the need to maintain a strong competitive edge – whether it’s brand, product uniqueness or a compelling New Zealand story.

There’s also no point trying to tackle the entire US market at once. Sometimes, the complexity of state-by-state regulations and taxation can be overwhelming – so it’s about what state, what segment, what area.

Joseph Harawira says, “You might as well treat every state like a different country. That’s the reality.”

Louise Clayton adds, “It’s like saying, ‘I’m going to start selling in Europe’ – all of it. It’s important to focus on states with the best fit for your brand.”

Cost, capital and commitment

Harawira offers a blunt assessment: “Whatever you’re thinking, it’s going to cost more and take longer.” Wai Mānuka is a premium non-alcoholic beverage manufacturer – cracking the US market will require an investment of between $5–7 million over the next four years. “Trying to sell that to investors here – it’s a hard sell.”

He also highlights the lack of investor experience in taking beverage brands global: “Out of 250 people I’ve met in the New Zealand investment ecosystem, only three had relevant experience.”

Despite the odds – only 2% of beverage brands make it to acquisition or strategic partnership – Harawira remains committed, saying, “You don’t need all the answers upfront. You figure it out on the run. But you’ve got to be relentless.”

Regulatory realities

Clayton, whose company develops and distributes a broad portfolio of pharmaceutical products, knows the regulatory hurdles well.

“Just to get your product registered at the FDA (United States Food and Drug Administration) is a little over US$4 million [$6.75m],” she says. “Pharmaceuticals are exempt from tariffs, but for our other brands we constantly monitor tariff implications to ensure we balance margin and in-market pricing expectations, while launching in a timely manner.” 

Her advice is to stay calm and calculated: “You’ve got to pick your battles with the US. Be on top of it, but don’t let it consume you.”

Despite the challenges, she sees opportunity. “The US is an amazing market. You only need a tiny proportion to make it work.”

Finding loyal customers

Pic Picot, who started making peanut butter in Nelson in 2007, offers an optimistic view, pointing to the diversity of American consumers.

“There are plenty of people in the United States who think what their politicians are doing is completely off the wall,” he says. “They’re happy to buy New Zealand products, especially if we’re seen to be doing the right thing by the environment.”

Picot’s success has come from identifying pockets of loyal customers in unexpected places.

“We have retailers dotted all over the States – in the most random corners – and they are very loyal buyers,” he says. “They’ll do anything to get our peanut butter.”

He believes success doesn’t require scale.

“You get four or five stores selling your product in New York – that’s cracking it. You build from that base.”

The consensus is clear: the US market is vast, complex, and expensive – but it’s also full of opportunity for those who approach it strategically. From segmenting states as if they were countries to finding niche audiences, Kiwi exporters must be prepared to invest, adapt and persevere.

For those interested in hearing more from these exporters directly, all three will be speaking at Global X in Auckland on September 3 – a forum for New Zealand businesses to share insights and explore global opportunities.