Nov 30, 2017  -  Amazon's arrival in Australia brings with it opportunities for New Zealand firms writes Wellington consultant Hamish Conway in his company, Sell Global blog.  Amazon is in 11 marketplaces around the world, with 123 fulfilment centres, and buying customers in 189 countries. The States is the biggest, with the UK able to fulfil to the other 26 European countries. They’re in Japan, and China but they’re having a tough time in China. AliBaba and the WeChat Group just dominate the Chinese market, with Amazon only having something like a 5% share of the market and consistently struggling there.

So, that’s all interesting, but obviously they are about to arrive in Australia. I was recently in Australia meeting with Fabio, from Amazon, who’s setting it up and running it, and they’re hiring now, looking towards a late November/December launch. Initially this is going to be a soft launch. They don’t want to over promise and under deliver around Christmas time.

Certainly a Q1 start is when it’s going to be happening. But, they have been building the catalogue over the next few months. They are getting their catalogue full, so when they do launch, this is a great opportunity for New Zealand companies that want to really stamp their mark on the Australian market, using Amazon as a channel.

Getting in early on Amazon, and getting on that page one should be the goal of all product selling companies in NZ. 86% of sales come from being on a page one search. Getting in first, and putting your stake in the ground and going, “right, I’m going to claim the peanut butter category on Amazon,” or whatever that category might be is going to be a huge advantage. Getting there and keeping it is far easier than coming in late and trying to claim that spot.

There are all sorts of categories that’ll just be open for business. According to a recent survey, one third of Australians who shop online, which is millions of people, they have said that they will switch to Amazon. They’ll definitely be looking at Amazon when it arrives. I suspect it would be more than that once it does launch, and they start to prove their worth.Amazon is going to really change the landscape. Not only in Australia, but in New Zealand as well. They look at Australia and New Zealand as one. New Zealanders will be buying from Australia.

Amazon has its own products that they sell, largely the tech products, like Alexa and Kindle. They will also buy products from you, like wholesale. So, if they like the look of your product, they’ll go we’ll buy that. They’ll pay you as little as possible, and take for as long as they can to pay you. But enough people do that because they just think that that’s the right way to go. Actually Amazon doesn’t really look after it that well, but they do it. If you look at some products on Amazon, it’ll say “Ships and sold by Amazon” even though it’s a brand you might be aware of. Or, you can be a third party seller, of which any third party sellers can go and set up their products on Amazon.

The products that are currently in America don’t necessarily end up in Australia, so it’s going to be a whole lot of new products that are Australia and New Zealand centric. People from the States or from Asia will be sending products down to Australia into the Australian warehouses there for purchase. People probably still could shop in America for awhile, but once the inventory and catalogue builds up over time, as more suppliers or third party sellers put product in, that’s when it’s going to become bigger and bigger, and a really great opportunity for New Zealand and Australian businesses.

What is the impact from that? If you are a retailer, a brick and mortar retailer, it’s absolutely a problem. If you are a brand owner it’s good news. Being on Amazon gives you so much free traffic, and free brand awareness. For small companies breaking into Australia, it has previously been quite a tough gig, going through the traditional approach and maybe trying to get into supermarkets or through big pharmacy chains, or whatever it might be with what you’re selling. Being on Amazon, people are searching and if you’re there then they’re seeing your brand.

If you control your brand, and the distribution of it, and you’ve got your own e-Commerce store as well, Amazon is going to be a major support for that. If you’ve got products that you don’t control the distribution of then you’re in trouble. The bottom line is that it’s a huge opportunity for any business, whether they’re small and just getting going, or bigger businesses, who will need to be there, and be protecting their brand on that platform. If you aren’t selling your products on Amazon, other companies, other people, other distributors might start selling it there instead.

| Source:  Sell Global  ||  November 30,  2017   |||

Nov 30, 2017  - Zespri Shipping Manager Mike Knowles says Seatrade has decided to exit the Meridian shipping routes to Northern Europe and East Coast North America. CMA CGM has agreed to step in and provide uninterrupted service on these routes for New Zealand exporters. “We’ve partnered with Seatrade for many years and enjoyed excellent and loyal service from the company for which we thank them." “While it’s sad that they won’t be operating in New Zealand anymore, we’re confident that CMA CGM will run an excellent service for the NZ kiwifruit industry in future. CMA CGM will provide a fixed-day weekly service with a best-in-class 32-day transit to Zeebrugge next season which is based around the purpose-built Seatrade colour class ships and water-cooled containers." “This service is based on the FDD principle (Fast, Dedicated and Direct) and we’re confident that this service will be successful for both parties." The announcement has been welcomed not only by the kiwifruit industry, but by many NZ perishable shippers as well who want to get their goods quickly into this key European market.

| A FreshPlaza release by Rachel Lynch   ||  November 30,  2017   |||

Nov 24, 2017  -  Northport Ltd is celebrating its 15th anniversary. Cargo volumes at Marsden Point have more than doubled since the port opened in 2002 to a record 3.64 million tonnes last financial year. Ship calls have increased from 93 a year to 250 a year over that period, with berth occupancy now at a record 66.4 percent, up from 52.9 percent just five years ago.

The company, a 50/50 joint venture between Marsden Maritime Holdings Ltd and Port of Tauranga, is marking these milestones by launching a public discussion about the potential future size and shape of the port.

It has published its ‘vision for growth’ online at www.vision4growth.co.nz and is inviting people to ask questions or make their views known to its management team via the website.  Chief executive Jon Moore stressed that the vision was not a confirmed plan, or even a formal proposal. No decision has yet been made by Northport’s Board to grow the port.

“It’s a conversation-starter; a vision based on what we believe is possible here,” he said. “At this early stage all we’re doing is prompting a discussion among tangata whenua, other Northlanders, our neighbours, customers, port users, suppliers and other stakeholder groups with an interest in what happens here, about what role they see Northport playing in the future of our region.”

Mr Moore said that in recent years, and particularly in the run-up to the recent general election, there had been much discussion about what should happen at Northport. Although Northport Ltd had no firm growth plans at this stage, its management team wanted to make public their vision for future growth.

“Some of the most frustrating narrative we’ve listened to over recent months has been around the perception that it’s not possible to grow Northport beyond its existing size,” Mr Moore said. “Our vision for growth demonstrates clearly that this is not the case. It introduces some reality to the discussion and shows that we are, in fact, well positioned to support economic growth both in Northland and in Auckland.”

Mr Moore said Northport would need to grow if it was going to play a key role in the future growth of the upper North Island. “Importantly, we don’t need to expand northwards into the harbour. Instead, we can extend our existing linear wharf east and west,” he said.

Northport Ltd’s vision for growth at Marsden Point includes 1,390m of linear berth, more than twice its current length, and involves growing its overall footprint from 48ha to 75ha.  Mr Moore said his team felt this was necessary if Northport was to play a meaningful role in developing Northland's economy and supporting Auckland's growth.

“Growing a port is an expensive and complex undertaking. To support economic growth and meet the forecast demand for shipping across the upper North Island we need to plan and build for the future, not just today.”

The vision Northport Ltd is making public today is based on many years of research, technical planning and engineering input from a raft of experts in this field. The company now has a good idea about what is physically and technically possible at Northport, and what isn’t.

It has not put any dates to its decision-making process around possible growth.

“We know full well that what we look like in the future will be shaped to some extent by our communities and our customers,” Mr Moore said. “So first we want to hear from these groups about what role they see us playing in Northland’s and the upper North Island’s growth.”

This initial discussion period will be followed by further technical and environmental studies and modelling, and if there are no surprises the company will then embark on a detailed stakeholder consultation exercise.

About NorthportNorthport, situated at Marsden Point at the mouth of Whangarei Harbour, is New Zealand’s northernmost port. It is a flexible facility catering for large, multi-purpose vessels and full cargo handling facilities are available from its 570 metre linear berth.

Logs, woodchip and processed timber for export comprise the bulk of cargo processed by the port. Other export items include kiwifruit, dairy products and manufactured goods. Imports are an important part of Northport’s business and include fertiliser, gypsum, coal and palm kernel. Northport has full container handling capability, including a mobile harbour crane. Containers are being imported and exported, as well as shipped around the coast.

A weekly coastal container service links Northport with other ports around the country.

The company has published its ‘vision for growth’ online at www.vision4growth.co.nz and is inviting people to ask questions or make their views known to its management team via the website.

The port is owned and operated by Northport Ltd, itself owned jointly and equally by Marsden Maritime Holdings Ltd and the Port of Tauranga Ltd.

| A Northport release  ||  November 24,  2017   |||

Nov 24, 2017  -  Australia has reiterated the importance of New Zealand to its foreign policy direction in its latest white paper, with particular emphasis on the role it sees New Zealand playing in its economic engagement with Pacific island countries.  In the Australian government's 2017 foreign policy white paper, released this morning, the relationship with New Zealand is described as "our most comprehensive" and the authors say Australia is committed to deepening it further.

Australia sees itself as "delivering a step change in our engagement with Pacific island countries", with an aim for "more ambitious engagement, including helping to integrate Pacific countries into the Australian and New Zealand economies and our security institutions". Its long-term angle is a region-wide free-trade area that includes all major economies.

The partnership with New Zealand will be central to advancing that agenda, the white paper says.

"New Zealand will remain an essential partner in support of the economic growth, stability and security of the region. Australia and New Zealand will align our approaches to the Pacific," the paper says. "Our cooperation has wider regional and global dimensions. We have high levels of police and military interoperability and collaborate on strategic planning, capability development and intelligence. This will continue to be essential to prosecuting shared interests, including in the Pacific."

The paper discusses the Pacific Agreement on Closer Economic Relations (PACER) Plus, an agreement signed in April this year by New Zealand, Australia, Cook Islands, Kiribati, Nauru, Niue, Samoa, Solomon Islands, Tonga, Tuvalu and Vanuatu. It built on existing trade deals and will come into force in mid-2019. As part of PACER Plus, both New Zealand and Australia committed to spending at least 20 percent of official development assistance as "aid for trade" in the Pacific region, to help address supply-side constraints and build Pacific island countries’ capacity to trade.

"Economic integration within the region and with Australia and New Zealand is vital to the economic prospects of the Pacific," the paper says. "Growth is constrained for most countries because of a combination of remoteness from markets, limited land and resource bases, the dispersal of people over many islands and environmental fragility.

"When in force, [PACER PLUS] will lay the ground for stronger trade and investment, increasing business confidence through transparent and enforceable rules. Australia will work to improve opportunities for growth and jobs and to strengthen the economic resilience of the region by increasing opportunities for labour mobility to satisfy unmet demand in our labour market, investing in skills, and helping countries to capture growth potential in sectors such as tourism."

The paper stresses the importance of Australia's relationships with the US and China for its interests in the Pacific, and its drive to forge closer relationships with both, even as the two super powers jostle for dominance in the Pacific region. New Zealand is still Australia's biggest tourism market, with 1.4 million Kiwis visiting the country in the latest year, but China was close behind at 1.3 million and had a growth rate of 10 percent compared to New Zealand's 2 percent.

Australia's alliance with the US is central to its approach in the region, and it will broaden and deepen its cooperation with that country, but the government is "committed to strong and constructive ties with China" and wants to strengthen its partnership there as well.

"To support a balance in the Indo–Pacific favourable to our interests and promote an open, inclusive and rules-based region, Australia will also work more closely with the region’s major democracies, bilaterally and in small groupings. In addition to the United States, our relations with Japan, Indonesia, India and the Republic of Korea are central to this agenda," it said.

| Source:  Sharchat   ||  November 24, 2017   |||

Nov 22, 2017  -  In politics, timing is everything. So it might have been inopportune amid a faux furore over Auckland Council business-class travel spending for Mayor Phil Goff to have to made public the details of his two-week sojourn to Europe and Britain.  Goff, however, has been around too long in the public eye, and is too much of a swot, to allow his time astride the world stage to be portrayed as some cosy junket writes Tim Murphy on Newsroom.

Instead, in full-press workaholic mode, he has revealed in a written report to councillors an eye-watering work programme of research on transport and housing and of diplomacy on climate change and World War 1 commemorations.

His 15-page note supplemented by photographic evidence and graphs, even explains that both Goff and an adviser's return airfares to Europe and accommodation in France were paid for by the global Bloomberg philanthropic foundation. (For completeness, that charity deemed business-class appropriate for a travelling public official).

What did the mayor - and the public - learn from the former foreign minister's return to a jet-setting life?

* He may have uncovered a "major New Zealand expatriate investor who is interested in investing in large-scale, built-to-rent developments to help alleviate Auckland's housing shortage. Goff's report says Kent Gardner, of multi-billion dollar investment company Evans Randall, is returning to New Zealand and is interested in projects here similar to those the company developed in the UK. "His goal is to build good-quality long-term rentals with secure tenure, including some social housing. This could represent a major opportunity to increase housing stock to address Auckland's housing shortage."

* He met New London Architecture, an independent forum for discussion on design and planning for the city, which has used 3D technology to create a 12.5 long metre scale model of London, showing in miniature the city's full 85 square kilometres. Notably, Goff says the Auckland Design Office is working with AUT on a similar model for Auckland.

* He had four and a half hours with the chief executive of Transport for London, Mike Brown, and his officials, learning that rubber-wheeled trains that can run along roads without the cost of tram-tracks were not the cost savers some think, because roads have to be strengthened to take the weight of the trams, they need power and the rides are not comfortable. TFL's experience also helped persuade Goff that elevated light rail costs four times as much as grade-level light rail - and underground light rail cost ten times that on the ground. "These costs largely rule out these options for Auckland."

* From TFL, the mayor also learned that autonomous vehicles were "highly . . .

| Continue here to read the full article on Newsroom   ||  November 22,  2017   |||

Nov 21, 2017  - Fairtrade Australia & New Zealand has brokered an unprecedented partnership investment of AUD$1.14 million to support smallholder coconut growers in Samoa.  The investment partnership, supported by the Australian Department of Foreign Affairs and Trade (DFAT) Business Partnerships Platform, will expand the opportunities for Samoan coconut cream producers Krissy Co Ltd. and the Savai’i Coconut Farmers Association (SCFA).

The Business Partnerships Platform boosts private sector investments with companies like Krissy Co.

This partnership will enable a two-year project to increase the capacity of the supply chain producing the Fairtrade certified coconut cream Savai’i Popo, scaling up Krissy Co and Fairtrade’s impact in Samoa.

“This partnership will increase the income of smallholder coconut farming households in Samoa, create new jobs, and support the development of new Fairtrade products into Australia and New Zealand markets,” says Molly Harriss Olson, CEO of Fairtrade Australia & New Zealand.

Krissy Co Ltd. and Fairtrade Australia & New Zealand, supported by the New Zealand Government, have worked together since 2012 to initiate the development of SCFA, a smallholder farmer business which achieved Fairtrade certification in 2013.

This DFAT support will enable the Krissy Co Fairtrade partnership to scale up the impact achieved so far.

“Together, we have pioneered Samoa’s only certified Fairtrade and organic coconut cream, and have identified opportunities for a new product line with Krissy Co. that will amplify the benefits we’ve already achieved,” says Perise Mulifusi, Board Secretary of SCFA.

The partnership will support the SCFA to develop a new product line of 200-litre sized barrels of 100 per cent Fairtrade and organic coconut cream, ultra-heat treated for export, to meet current demand from the food service sector in Australia, New Zealand and other markets.

“This project alone will create over 26 new jobs for Samoans and increase the income of 200 smallholder coconut farming households on the island of Savai’i in Samoa,” explains Mr Elvis Prasad, Product Development Manager at Krissy Co.

Fairtrade Australia & New Zealand will oversee the implementation of project activities, including the improvement of processing facilities, business management support for coconut farmers, a tree replanting pilot programme and contributions to Fairtrade Premium investments addressing community development.

“Helping Samoan farmers to grow their businesses is a vital part of our work in the Pacific. This funding will enable producers to invest in their communities and enhance Samoa’s economic future,” Ms Harriss Olson concludes.

| A Fairtrade ANZ release  ||  November 21, 2017   |||

16 Nov 2017  -  Sales of Anchor UHT milk were particularly strong and the brand was the leading imported UHT product across all online sales platforms during the sales window.  Double 11 is characterised by deep-discounting and wide-ranging promotions, generating a level of hype similar to a holiday festival in China. According to data from Syntun, China’s 16 largest e-commerce merchants achieved a combined RMB 254 billion (NZD $55.1 billion) in sales this year during the period, up 43 per cent on last year’s total.

President of Fonterra Greater China Christina Zhu said Fonterra’s strong growth on last year reflects the strategic partnerships that the Co-operative has been building with China’s e-commerce giants.

“Forming win-win relationships with the major platforms has been a point of focus for us over the past 12 months,” said Ms Zhu. “We’ve gotten closer to Alibaba and its Tmall platform, demonstrated by how we secured a feature spot on the platform’s homepage in the lead up to November 11. We’ve also developed a good relationship with JD.com, having been identified as one of the platform’s strategic growth partners in the dairy category.”

Fonterra’s Vice President of Brands in Greater China, Chester Cao, said that the Co-operative took a different approach to this year’s sales period, which was the fifth time Fonterra had taken part.

“We were pleased to offer a much broader portfolio of product to consumers this year,” said Mr Cao. “In addition to our strong-selling Anchor UHT and powder products, Anlene and Anmum, we were also able to push our new premium and organic Anchor range and our Anchor Dairy Foods range of cream, cheese and butter.

“For us, it’s much more than just a window to sell more product than usual,” said Mr Cao. “With high levels of online traffic, it’s a real chance for us to reach a greater number of consumers with our brand and educate them about the goodness of our dairy. Given this, we had a strong focus on investing in the right media channels by using a data-driven approach, and creating engaging content for a range of different online and social channels. This approach paid off, as we had more than 30 million consumers visiting our online stores.”

Fonterra has flagship stores for Anchor, Anmum, Anlene products and has partnerships with eight major e-commerce platforms, including front-runners Tmall and JD.com as well as other companies such as Suning and Yihaodian.

China’s e-commerce market is far-and-away the world’s largest and an estimated USD $800 billion is set to be spent this calendar year according to figures from McKinsey & Company. This matches the market size of the next six largest countries combined: the United States, United Kingdom, Japan, Germany, Korea, and France. Growth is set to continue, with a compound annual growth rate of 18 per cent expected between 2016 and 2018.

“We are excited by the future of e-commerce,” said Mr Cao. “While some categories like electronics or apparel are starting to show signs of maturity, the fresh and packaged food categories have very low online penetration rates by comparison, so there is a lot of room for growth and we’re positioning ourselves well to capture it.”

| A Fonterra release  ||  November 16,  2017   |||

16 Nov 2017  -  Foreign Minister’s APEC and EAS visit.  Deputy Prime Minister and Foreign Minister the Rt Hon Winston Peters returns to New Zealand overnight following a visit to Viet Nam and the Philippines where he attended the APEC Meetings in Da Nang, and the East Asia Summit in Manila.   “My first visit to these two major regional summits as Foreign Minister provided a valuable opportunity to be reacquainted with counterparts who I have previously met, and to have introductory meetings with Foreign Ministers from a significant number of countries where New Zealand has strong economic and strategic interests”, Mr Peters said.

Across both summits, Mr Peters had formal meetings with the Foreign Ministers of eleven countries, including Australia, China, Japan, the Republic of Korea, Lao Peoples’ Democratic Republic, Papua New Guinea, Russia, Singapore, Thailand, Viet Nam, and the United States.

Additionally, Mr Peters met informally with Foreign Ministers from a range of other countries, including Brunei Darussalam, Canada, Indonesia and Malaysia. Mr Peters also accompanied the Prime Minister the Rt Hon Jacinda Ardern to meetings with her counterparts.

“The visit allowed me to participate in discussions on the big issues facing the Asia‑Pacific region, including the threat posed by North Korea’s actions, the territorial disputes in the South China Sea, the challenge of countering terrorism in South East Asia, and the conflict and resulting humanitarian crisis in Myanmar’s Rakhine State”, Mr Peters said.

Mr Peters also launched a new phase of New Zealand Official Development Assistance supporting the development of Viet Nam’s dragon fruit industry. In the Philippines, the Minister also announced a new phase of New Zealand assistance to support agriculture‑based livelihoods and agribusiness in Mindanao.

Mr Peters also confirmed the appointment of New Zealand Honorary‑Consuls to Davao and Cebu, further strengthening New Zealand’s relationship with the Philippines.

| A beehive release  ||  November 16,  2017   |||

16 Nov 2017  -  The NZ deer industry has agreed to support one of South Korea’s largest pharmaceutical companies in its plans to develop and market a product with proven health benefits based on NZ deer velvet.  The Chief Executive of Yuhan Corporation Mr Jung Hee Lee, and the Chief Executive of Deer Industry New Zealand (DINZ), Mr Dan Coup, this morning signed a memorandum of understanding in Wellington, witnessed by the Minister of Agriculture Damien O’Connor and the Ambassador for the Republic of Korea, Mr Seung-bae Yeo.

Mr Lee said Yuhan’s objective is to successfully develop, register and market a health food product containing scientifically validated components of New Zealand deer velvet.

“This will be a world-first. In recent years a number of Korean companies have developed easy-to-consume formulations of traditional herbal products based on deer velvet, but none have commissioned supporting research in New Zealand to the same level of detail that Yuhan will do,” he said.

“AgResearch and Yuhan scientists will be working together to build on existing scientific knowledge. AgResearch is recognised internationally for its knowledge of velvet processing techniques, the composition of deer velvet and the potential health benefits.”

Mr Coup says DINZ and Yuhan have a shared interest in the registration of NZ deer velvet as a health food.

“If this is achieved it will further strengthen the reputation of NZ deer velvet as a natural, safe and quality food ingredient in Korea.”

He says DINZ will work with Yuhan to help promote the “New Zealand velvet story” and support the successful launch of its velvet products where appropriate.

“The two parties may also co-fund some specific areas of research and marketing activities, but these will be subject to separate agreements.”

Ms Ashley Kyung-in Chung, head of Yuhan’s food and health marketing team, said the company would be investing a minimum of $1.5 million on research with AgResearch and had budgeted for the substantial costs involved in registering a functional food claim and taking a product to market.

She said Yuhan had chosen New Zealand as the source of velvet because of the country’s transparency on three fronts – the farming environment, animal welfare and the traceable and hygienic supply chain.

“Yuhan is one of the most respected companies in Korea – consumers trust us and trust our partners. We travel the world looking for ingredients that are produced in systems as close to nature as possible and where animals are treated with care – that’s why we have come to New Zealand. Velvet from other countries does not have the same standards as New Zealand.”

As part of its market positioning, Yuhan has also signed an agreement with Alpine Deer Group.

“In our marketing we will be using images and videos of one of Alpine’s iconic high-country deer stations that will be one of our main sources of velvet. Our marketing materials will strongly reflect our connection with New Zealand as both the source of our velvet as well as the technology we are using to bring innovative velvet-based products to the market,” Ms Chung said.

Background information

Yuhan Corporation was established as a health company in 1926 by Dr Ilhan New. Today it is one of South Korea’s largest pharmaceutical companies, formulating and marketing high quality and innovative health products.

Yuhan’s 2016 sales turnover was approximately US$1.18 billion. Approximately 9% of its revenue was reinvested into research and development.

Yuhan’s mission is to create a balanced portfolio of health food products and supplements from the most natural sources for every life stage. Yuhan has been awarded the most respected company title in South Korea for the last 14 consecutive years (2017).

Yuhan has 220 highly trained scientists involved in product development and commercialisation.

For more information on Yuhan Corporation, refer to www.yuhan.co.kr

Deer Industry New Zealand (DINZ) is a marketing authority established by the Deer Industry New Zealand Regulations 2004 pursuant to the Primary Products Marketing Act 1953. Functions of DINZ relevant to the MOU with Yuhan are:

    a. to promote and assist the development of the deer industry in New Zealand    b. to assist in the organisation and development of the marketing of products derived from deer    c. to assist in the development of existing and new markets for products derived from deer.

DINZ works closely with New Zealand’s leading Crown Research Institute, AgResearch, and has a joint venture partnership with AgResearch called Velvet Antler Research New Zealand (VARNZ).

For more information on DINZ, refer to www.deernz.org

| A DeerNZ release  ||  November 16, 2017   |||

15 Nov 2017  -  Paints supplier DuluxGroup is reviewing the future of its underperforming business in China but is set to launch into the Indonesian market.  Paint supplier DuluxGroup may consider pulling out of its joint-venture business in China as its paints brand struggles but has flagged higher hopes for Indonesia, with plans to start selling some its Selleys products into the growing market there.

DuluxGroup lifted profit by 9.6 per cent to $142.9 million for the year to September 30, and said on Wednesday it expects to deliver an even better result in the year ahead.

Strong growth in the group's Dulux Australia-New Zealand business contributed the bulk of earnings, driven by positive markets and good margin management, and Selleys Australia and New Zealand also lifted.

But earnings from DuluxGroup's "other businesses" segment, which includes the Yates garden care range, PNG, south-east Asia, and China's DGL Camel paints business fell because of a weaker Camel result.

DuluxGroup managing director Patrick Houlihan says DuluxGroup's China business generates about $50 million in revenue, or about three per cent of group revenue.

The China business comprises Camel paints, which is the largest part, and the Selleys range.

Camel and Selleys are profitable in Hong Kong, and Selley's has prospects for success on mainland China, but the Camel paints business has struggled from lack of scale and lack of brand awareness and delivered a poor result in fiscal 2017.

The Camel paints joint-venture started in 2012.

"We just don't have the competitive ratio (with Camel)," Mr Houlihan told reporters on Wednesday

"We doing a strategic review of that business at the moment, particularly the coatings (Camel) portion of it.

"As to what that concludes, I won't pre-empt."

Mr Houlihan said Indonesia has good prospects.

DuluxGroup is partnering with Avian Paints, one of the largest paint companies in Indonesia, to sell some of the Selleys adhesives and sealants range starting in mid-2018.

Mr Houlihan said the joint-venture with Avian has the potential to ultimately access about 40,000 retail hardware outlets in a large and growing market.

"It's going to take a few years to build - this won't be transformative overnight," Mr Houlihan said.

"Over the short term, it will really be about launching in quite a considered matter, portions of the range, one at a time."

DuluxGroup expects its Australia-New Zealand business to remain resilient in the year ahead with its core markets - home renovation, housing construction and commercial markets - forecast to provide solid growth in 2018.

DuluxGroup also said its new paint factory in Merrifield in Melbourne is schedule to begin commercial production in the first half of the 218 financial year and will support the company for decades to come.

Shares in DuluxGroup were 20 cents, or 2.6 per cent, higher at $7.74 at 1117 AEDT.

DULUX LIFTS ANNUAL PROFIT, DIVIDEND

* Full-year profit up 9.6pct to $142.9m

* Revenue up 4pct to $1.8b

* Fully-franked final dividend of 13.5cps, up from 12.5 cents

| A SBS release  ||  November 15,  2017   |||