No money in honey for Ngai Tahu Holdings this year

Thursday, 6 July 2017

The worst honey season in 35 years has put a damper on Ngai Tahu Holdings' investment in Masterton honey firm Watson and Son.

The South Island iwi company ploughed an estimated $40 million to buy half the honey company in 2015 to great fanfare.

Wellington-born apiarist Denis Watson established the firm in 2004 and helped raise its reported turnover to $30m a year.

Watson & Son New Zealand (previously Watson & Son) was put into liquidation in September last year by a special resolution of the only shareholder Oranganui Limited Partnership.

READ MORE: Manuka boom grips Wairarapa as Ngai Tahu iwi invest in Masterton honey firm Watson & Son

Liquidator Jessica Kellow, a business recovery and insolvency specialist with firm ShephardDunphy, said in a report the 'solvent liquidation' was 'for the purposes of restructuring the ownership configuration of the business'. 

She said the restructuring would probably take six weeks and the company would then be removed from the register. Nine months later the matter has yet to be completed.

Ngai Tahu was this week saying little about the health of its investment in the Masterton company.

It declined to answer questions and in a statement said only the manuka honey industry had experienced the worst honey season in 35 years, affecting cashflow, 'but we have a strong asset position.'

It said Ngai Tahu Holdings appointed members of the board of Watson & Son and the board governed the business. 

'NgaiTahu Holdings has no involvement in the day-to-day management and operation of the business.'

Managing director Denis Watson said the liquidation was needed because the joint venture with Ngai Tahu required a change from a limited liability company to a limited partnership. 

Once the liquidator had prepared her final report, the company would be removed from the register, he said.

Although the season had been the worst in 35 years 'we have a very strong asset position and have good support from our bankers and shareholders'.

He said the relationship with Ngai Tahu Holdings was 'fine'.

High turnover in senior management at the honey company was due to difficulties in retaining highly qualified staff in Masterton.

The company's chief financial officer Chris Birkett had recently resigned to take up another position, he said.

Watson, on his website, says he is 'a proud descendent of the Maori Chief Kahungunu from the Ngati Kuri tribe'.

It says the discovery of the uniqueness of Manuka honey was both scientifically and culturally significant for him as he knew his 'ancestors had always revered the Manuka tree and would use it in many of their ancient remedies and tonics.  

'He immediately saw the potential of this taonga 'treasure of the land' and began his passionate pursuit of Manuka honey.'

The company has branches in the Masterton and Kaitaia.