Taking a small New Zealand company global
Chris Cullen, owner-operator of Culley’s, began selling his hot sauces at a local farmers’ market. This article describes how he expanded his small company to supply national and export markets.
Product development began as a hobby
Chris Cullen developed a taste for hot foods as a child and began experimenting with hot sauce recipes while working as a chef. Driven by this passion, he continued developing his recipes as a hobby when he moved to a corporate job. For years, Chris gave jars of his sauces away for friends and colleagues to taste.
From hobby to small business: Culley’s hot sauces
Chris Cullen started out making hot sauces as a hobby. In this video, he describes his journey from a hobby to a rapidly expanding business.
Follow-up activities
In small groups, think of a product you could produce and sell at a farmers’ market. Pitch your idea to the class (in lieu of the farmers’ market management). Justify the viability of your product by identifying the resources you will need and how you will source them (consider human, physical and environmental resources). Identify your target market and justify why your product is likely to appeal to this consumer group.
Assuming that your product is successful at the farmers’ market, identify what would need to happen to develop your product to sell in retail stores and how this would impact on production.
Chris started selling small batches of his sauce after being introduced to the Clevedon Farmers’ Market by a colleague who ran a successful small business and had a stand at the market.
Culley’s products were very popular, and within a short time, customer demand for his products drove Chris to investigate the possibility of stocking a local retail store – Farro Fresh.
From farmers’ market to retail
Farro’s accepted 13 of Culley’s product range into their store. While this was a good result, Chris was suddenly faced with having to produce significantly more of his products than he had ever done before.
Chris was able to produce the quantity he needed to supply the farmers’ market by renting a commercial kitchen for a day now and again when his stocks were low. However, he couldn’t produce the quantity needed for Farro’s sustainably at that scale while still maintaining his full-time job.
At about the same time, Chris exhibited his products at The Food Show Auckland, and through the network of people there, he was introduced to The FOODBOWL.
Scaling up production at The FOODBOWL
Using The FOODBOWL facilities, Chris was able to scale up his production from 10-litre batches to 120 litres and then to 750 litres. He can now produce up to 20,000 bottles in a day compared to 200 in the commercial kitchen.
The FOODBOWL story
This video story explores how The FOODBOWL and the wider New Zealand Food Innovation Network facilitate food innovation in New Zealand. Angus Brown, Business Development Manager, and Brian Astridge, Operations Manager at The FOODBOWL explain how they support clients to develop new product ideas and expand into new markets. Chris Cullen, owner-operator of Culley’s, provides a client’s perspective on how The FOODBOWL helped him expand his hot sauce business.
Key questions
The FOODBOWL has significant government funding – why has it been established?
Why is innovation important for growth in the New Zealand food industry?
How does The FOODBOWL support and enable innovation?
Follow-up activities
Identify and list all the resources available through The FOODBOWL. Group these into types of resources – physical, human and environment – and explain how these resources can help companies to innovate.
Angus makes the point: “New Zealand cannot supply or feed the world. We can only feed the premium, and we should be up there in making the best and most innovative food products for the future.” Explain what this statement means. Do you agree? What are the implications for people working in the New Zealand food industry?
Jargon alert
HACCP (Hazard Analysis Critical Control Point): HACCP is an internationally recognised tool for food manufacturers to ensure that their products are safe to eat. The system includes planning, monitoring and keeping records to verify the safe production of the food product.
Larger scale meant more time for business
Chris could now make enough sauce in one day to fill his orders for several months. This enabled him to continue working in his day job and also spend more time on his business – meeting customers and marketing his product.
Bottling Culley’s sauces
Using the automated filling machine at The FOODBOWL helps increase the speed of production of Culley’s sauces.
After a short time, Chris had secured enough new market opportunities with other gourmet delicatessens and supermarkets that he was able to leave his job and work full-time in his business.
Understanding the science behind his product
Producing a safe and consistent product on a large scale and meeting compliance standards in different markets requires a deeper understanding of the science behind the product and the manufacturing process.
Chris found that stepping up to larger-scale production was not as straightforward as multiplying the ingredients to make a larger batch. Specialist staff at The FOODBOWL worked alongside Chris to research and develop the scaled-up recipe. This required an understanding of the function and interaction of ingredients and how that changed at a larger scale.
Testing pH of Culley’s sauce
During production, the pH of Culley’s sauce is monitored to ensure the safety and consistency of the products.
To pursue new markets for his sauce, Chris also has to be able to verify its quality, safety and shelf life. He’d tested its shelf life when supplying the farmers’ market so he knew it was safe, but he couldn’t explain to customers why it was safe or how long it would last. Support from The FOODBOWL helped Chris to better understand and complete the required Hazard Analysis of Critical Control Points (HACCP) plan to comply with food safety regulations. This involves identifying potential hazards throughout the production process and testing and monitoring at these critical points to ensure a safe and consistent product. For example, for Culley’s sauce, pH level and time and temperature of processing are critical points that must be checked and recorded.
Certification at The FOODBOWL gives credibility in new markets
The FOODBOWL has a reputation for stringent food safety controls and is accredited for export, so using these facilities for manufacture has given Culley’s products credibility in the market.
Having his product certified safe through The FOODBOWL and the assurance of being able to sustain large-scale production have been pivotal for Culley’s in securing contracts to supply a national supermarket chain and his first export customer.
Preparing for future growth
Chris has taken his business to another level through The FOODBOWL, and this expansion is set to continue with more overseas customers in the pipeline. Chris is now considering how best to manage increasing his production going forward – whether to pass it over to a contract manufacturer or invest in his own production facility.
Useful links
Find out more about Chris Cullen’s range of products and the awards he has won for his sauces on Culley’s website.
