Small Kiwi brand, Forty Thieves is stealing its share of the multi-billion dollar peanut butter industry. What was once described as ‘pâté for children’ is experiencing a new wave of popularity, with a consumption growth rate of six percent yearly and a market value of over US$5.3 billion by 2027.
With crunchy and unsweetened versions of the spread becoming increasingly popular, Silverdale-based small business Forty Thieves is finding itself on the crest of this global peanut butter wave. The award-winning company has seen export orders flowing in from Malaysia, Taiwan, Singapore and Fiji, with promising interest from the USA and China.
“Our orders are getting bigger and more frequent too, which is a great sign. We’re currently exporting tens of thousands of jars each year, but it’s a massive market out there, so it’s definitely the right direction for our business,” said Shyr Godfrey, Forty Thieves co-owner.
The Asia-Pacific region currently eats more than a quarter of the world’s peanut butter, with consumption set to increase further in the coming years.
Distributors for Forty Thieves in Asia said consumers are willing to pay a premium for products from New Zealand, with its excellent reputation for food safety and quality.
“They tell us there’s been a big consumer shift towards better-for-you, unsweetened products, like ours, which are considered healthier and more nutritious. That’s been our approach from the start, so it’s fantastic to see consumers pick up on it - not just here in New Zealand, but all around the world.”
From Small Things
Forty Thieves was founded by Shyr and Brent Godfrey in their garage in 2016. Both are keen runners and have always loved peanut butter, having used it as a source of energy for their exercise.
“That love of running and the natural healthiness that peanut butter provides – the combination of the two just cemented well with me,” said Brent Godfrey, Forty Thieves co-owner.
In the beginning, they thought there was already enough peanut butter on the market in New Zealand, so they focused on other nut butters, and tahini-based spreads.
“But people just kept asking us about peanut butter. So after a while, we thought, we've got all the machinery, we've got the peanuts, so let's just produce pure peanut butter. People absolutely loved our extra crunchy texture and the naturally sweet flavour,” said Shyr Godfrey.
Six years later, their passion for peanuts and the demand of their customers has seen the start-up grow into a vibrant and successful business. Forty Thieves now employs ten staff, selling more than a quarter of a million jars of nut butter each year in more than 400 stores across New Zealand and abroad. That growth required a willingness to learn and adapt their business as it grew.
“Right from the start, we were keen to get all the help we could. The small business workshops ANZ offered - especially around business and marketing plans - were excellent, and we got a lot out of them. It was also a huge help to have our card and account fees waived at the beginning - meaning we could keep our costs as low as possible while we focused on getting the business up and running.”
The support received by Forty Thieves was available to them under ANZ’s Business start-up package, which has seen a strong recent lift in sign-ups following two years of Covid-19 disruptions.
Data from ANZ shows the number of start-up businesses registering with the bank is now higher than pre-Covid levels, with almost 13,000 signing up in the year to July 2022. A record 1511 new businesses registered in March this year.
Lorraine Mapu, ANZ New Zealand’s Managing Director of Business Banking, said many of the country’s greatest businesses started out small – so it’s great to see a new wave of start-ups emerging.
“Covid was tough on many businesses and their owners, but now we’re seeing real strength and resilience from many of these companies.”
Containing Costs
Like many New Zealanders affected by the recent cost of living increases and high inflation, Forty Thieves has also seen its costs rise sharply.
“We've seen inflation creep up very quickly in the last few months, and our suppliers are starting to put the prices up, which means our margins are being squeezed,” said Brent Godfrey.
The company has gone from paying 30 cents for each glass jar it uses to now paying 53 cents.
“It's quite a big jump, but it's really hard to pass it on to the customer because they are also feeling the same pressure.”
During the pandemic, Forty Thieves saw a rise in the number of people buying from them directly through their website. Shoppers also bought in bulk, with products like their 10kg pail of peanut butter - formerly sold mainly to restaurants or caterers - becoming increasingly popular.
“This made a lot of sense when Covid restrictions were in place and there were queues outside supermarkets. But now, with the restrictions ended, our online sales volumes have remained strong - I think shoppers are seeking out the value that a bulk order gives them,” said Shyr Godfrey.
Forty Thieves has also sought to lower production costs by investing in new systems and machinery.
“We're always looking ahead at how can we become more efficient, use more artificial intelligence, and rely more on machines to help us increase that output. We want to bring down the cost per unit, so we’re able to survive, and thrive, into the future,” said Brent Godfrey.
Forty Thieves’ products received recognition at the 2022 Inspire+ NZ Artisan Awards, with its Keto Original spread winning a gold, its Keto Raspberry and Peanut Satay Paste winning Silver and its Keto Caramel spread winning Bronze.
