Chaz Savage believes that the New Zealand grocery industry is ripe for reinvention. With a growing population and a market that is dominated by a few players that aren’t always tapped into meeting customers' needs, there is support from suppliers, the industry and even the government for a fresh new way to do things. Currently, the fast grocery delivery sector is underserviced, with supermarkets requiring 24 hours notice for home delivery. Savage and the Taiaroa brothers are changing that. Quickly.
Savage was born in Hastings and raised in Flaxmere before moving to Tairawhiti when his fisherman father set the family up in Tatapouri. The family stingray business Dive Tatapouri is still there and run by his brother. Savage is one of 15 and is of the Ngati Awa and Ngati Tuwharetoa iwis. He attended Lyttleton High School and is thankful for the scholarships and life-changing role models that got him to study marketing and finance at the University of Waikato.
He has worked with Vodafone, Spark, Sky New Zealand and Telstra in Sydney before an opportunity took him and his wife Liz to Dubai and Africa for five years. He returned home when he purchased Scarpa, where the plan was to become Al Bundy, fitting amazing Kiwi women with international designer footwear and accessories. Fate had other ideas, and Savage was back with Sky before working on Teddy with Ricki and Daniel.
Ricki and Daniel Taiaroa grew up in Riverton before moving to Christchurch for high school. They are of the Ngai Tahu iwi. With a typical small-town Kiwi upbringing and young parents who were massively into sports, the brothers have always been close. However, university saw them go their separate ways. Ricki attended UC Berkley on an exchange during his undergrad and UCLA later for his MBA. He then worked as a management consultant in the USA, managed Telstra's streaming service, and eventually returned to NZ to run Neon. An exchange saw Daniel study Business at the University of Washington, after which he took an entrepreneurial path. He owns a network of four bars and restaurants across the South Island after his start in Queenstown ten years ago. All three cofounders balance their new roles at Teddy with young families.
Savage said the three cofounders had been watching the grocery category from afar, and as customers themselves, they were frustrated by what was on offer. The idea for Teddy grew a year ago when they took on Food on Q, a fast food delivery business in Queenstown, and flipped it into beta for Teddy. They then personally invested $500,000 alongside $1 million from outside investors, including friends, family, and Sir Stephen Tindall’s investment firm, K1W1, to start the new delivery service.
The pilot programmes are now well underway in Auckland and Queenstown with app downloads on track following a soft launch, and an integrated advertising campaign for the major cities is ready to roll. With nearly 1,000 different products available to customers, the most searched items are milk, bread, cheese and beer.
“It’s fun and cheeky, and we know we will be creating some chat in the grocery business with our approach,” said Savage.
Teddy Queenstown Driver
The ambitions for Teddy are big, but the boys are not going to bite off more than they can chew. They use resources to ensure maximum effect and stay true to their new roots: “In your time of need, we deliver.”
One of their app’s innovations is categories that speak to specific customer pain points. Categories like Last Minute BBQ, Cold & Flu, Forgot I’m a Parent, and Unexpected Guests are all proving to be very popular. Teddy has it covered, from the Covid isolators to stressed home chefs. A customer has already asked for more options in the School Lunches category, and the team was on it in a few days.
“Each area has its own grocery warehouse manned by locals. Being able to have that feedback come through customer and marketing and be applied directly to the operations team is priceless. In this way, our customers really get to help shape the product and the experience to their needs, and that’s what will ultimately make Teddy a game-changer.”
The company is trying to do things differently from the start, like working with UBCO bikes and offering team members employee stock option plans so they have skin in the game. Savage also noted they are trying to be as responsive as possible and have complete Transparency, as mistakes will be made, but the team will own them.
With confidence, a great team, a fantastic model and some awesome backers, there is plenty to be excited about. Supplier responses to Teddy have been excellent; the company has been inundated with approaches from around the country, and suppliers are keen to talk with them. When it comes to the grocery code of conduct and more supplier opportunities, Savage wanted to know why it has taken so long.
“The Aussies and Brits set an example some time ago, and as consumers and operators, we've been held back by a couple of very accomplished players. To be honest, you'd probably do the same, given half the chance. However, the new mood sees the big guys genuinely engaging with people like us to help with product supply, so our timing couldn't be more perfect.”
Inflation is something else for the Teddy team to consider, and while they are working hard to keep prices competitive, their sweet spot is being there for customers when they are stuck and providing fast delivery.
Product and service lines are growing as quickly and relevantly as possible. Savage has his eyes on Christchurch and Wellington for expansion next because the demand in all the vital urban centres is ready and waiting.
“We have been blown away by the positive responses we've had to launch, and we can't wait to take Teddy to more of Aotearoa.”
