Costco in NZ: Kiwi haircare brand Everblue wins lucrative contract after a year in business


An exclusive look at the products and deals Kiwis can expect from Costco coming soon to NZ. Video / NZ Herald

An award-winning New Zealand-made haircare brand is going supersized after winning a contract with big-box retailer Costco.

Kiwi-made Everblue haircare has designed 800ml bottles of their shampoo and conditioner for the store famous for its bulk products.

“It’s really exciting for us going into Costco, the overseas market and the big format,” Everblue chief operating officer Renee Lee told the Herald.

“In typical Costco fashion it is supersized so it is an 800ml bottle of our shampoo and conditioner and then a gift pack so it is all packaged up together – it is going to be a very busy few months for us.”

Everblue co-founders Renee Lee and Jade Hart say the Costco contract is a big win for the company that only launched a year ago. Photo / Supplied
Everblue co-founders Renee Lee and Jade Hart say the Costco contract is a big win for the company that only launched a year ago. Photo / Supplied

Costco will open its first New Zealand superstore on Wednesday September 28. The warehouse on Gunton Drive, Westgate is the same size as two rugby fields and has parking for 800 cars.

The American store is one of the few retailers in New Zealand that requires shoppers to buy a membership. Annual memberships are $60 and the store has 50 million members worldwide.

Lee said the Costco contract was a great win for the new company and came after solid sales at Countdown supermarket and two recent awards.

“Costco’s buying team came over in May and met local suppliers and we were able to put forward a solid pitch,” Lee said.

“We had our sales information at Countdown and were able to show we appeal to a broad demographic.”

Everblue, which launched just over a year ago, was also voted one of Verve Magazine’s best in beauty products and recently won “best natural shampoo and conditioner” for Good Magazine.

Lee said the Costco contract meant their product would be sold not only in Costco’s first New Zealand store but also in the 13 Costco stores in Australia.

Costco NZ will open its Gunton Drive store in Westgate on 28 September 2022. Photo / Supplied
Costco NZ will open its Gunton Drive store in Westgate on 28 September 2022. Photo / Supplied

As well as the larger bottles, Everblue had to supply Costco with designs for “pallet-packs” and what the product would look like in the shelf-free store Costco is famous for.

“We had mock-ups and packs designed specifically for Costco and because Costco is pallet-based you have to show them the pallet pack and what it will look like.

“They have a lot of questions because they know what they want to achieve and what they need to do.”

The 800ml twin packs of Everblue would be sold exclusively at Costco for $28.99. The smaller 400ml bottles sell at Countdown and The Warehouse for around $9.

Lee had worked with Costco in previous roles and said the company was focused on delivering the best price to the consumer.

“They work hand in hand with you on your product because they don’t work with a million and one suppliers and they want the best deals to make that really stand out in store.

“They are not about having a broad range they are about getting the best product and deal for the customer.”

Lee did not know what other New Zealand brands would be sold at Costco.

“I know they do like to have local brands in each area as well as their American brands.”

Mike Lee, associate professor of marketing at Auckland University, said having New Zealand-made or local products in Costco could be very lucrative and mean global sales.

“It’s a great platform for greater exposure to larger markets and even though the profit margin per ml might possible be less when supplying to massive retailers, the increase in volume sold should be more profitable.”

Haircare brand Everblue is one of the local brands that will be sold at Costco's Westgate store. Photo / Supplied
Haircare brand Everblue is one of the local brands that will be sold at Costco’s Westgate store. Photo / Supplied

Lee said Costco also had extensive experience helping suppliers to scale up but at the same time had sustainability policies that suppliers need to adhere to.

“Hopefully that equates to a win-win for everyone.”



Source link

Leave a Reply

Your email address will not be published.