Nice guys making Nice Blocks

Abstract

Like so many New Zealand stories, it began with a small, but innovative idea. One weekend at the beach, Tommy said to his friend James, ‘Why isn’t there a decent fruit juice ice block for sale?’. A market opportunity was obvious and the boys decided why not? The ‘Nice Blocks’ name and the ‘Tommy and James’ concept was developed. The company was registered in August 2010 and was New Zealand’s first Fairtrade-certified ice block company. Chris Morrison, a New Zealand pioneer of organic and Fairtrade opportunities (e.g., Phoenix Organics, All Good Bananas and Kokako Organic Coffee), joined them as a third partner in 2011, and since then two other partners have also joined the team. Nice Blocks led to Nice Cream, a coconut-based ice cream. Something nice had begun.

Even without a formal business plan, Tommy and James knew that if the company was to grow they needed to think big. After working in rented cafe space, in November 2011 they took the plunge and entered a 3-year sublease on an export-quality production facility, which included a fully equipped kitchen and office spaces, along with separate space for the ice block making and refrigerated storage. In this new space, the partners installed a 40-foot-long ice block machine that led the company to quadruple its output overnight. According to James, they had the second-largest capacity to make ice blocks in New Zealand, after market leader Tip Top. The pair employs five additional staff in the summer, making a total of 10 staff.

In April 2014, Tommy and James were deciding whether to focus on growing their New Zealand market share or to enter the Australian market. According to Tommy, ‘If we are to keep achieving our sales, which we have done all summer, where our growth is about 15% a month we will meet all the models that we put in place to have enough capacity to export to Australia. But we don’t want to move too fast’.