From the CEO

Welcome to the May edition of The Farmlander. In this issue, we introduce you to some of the shareholders that you can see in our new TV commercials. These advertisements are the result of two and a half years of planning and design. The biggest challenge for us was trying to capture the essence of who we are and what we do in 30 seconds.

As a co-operative, why are we spending money on TV advertising? With an established 82 store network, more than 150 technical experts nationwide and an infrastructure to support, we have a high fixed cost structure that benefits significantly from greater turnover. Our campaign has three audiences who we believe will feel better about Farmlands after this campaign which, in turn, will drive better outcomes for Farmlands.

1. Our staff. As you are aware, our staff take great pride in our co-operative. They make a tremendous effort every day putting our shareholders’ success at the centre of everything they do. These ads demonstrate this and instill further pride in, and recognition of, our people.

2. Our shareholders. Given the response from participating shareholders, it is clear that our members believe in and want to do right by their co-operative. We appreciate this is a two-way street and requires us to do our part. These ads show we are up for that journey.

3. Prospective customers. On a national scale our co-operative is not that well known – we are perceived as a limited club for farmers. Attracting new people into our stores without adding cost lifts our revenue and drives profitability.

Every person you see in these advertisements is either a Farmlands shareholder or an employee – one of our Farmlanders. Some work for shareholders, some have been shareholders for decades. To provide one view of our business in such a short space of time, we wanted every person in New Zealand to see that both sides of the counter are just like them. Early feedback and response has been positive and we are confident this campaign will more than pay for itself with better staff morale, increased foot traffic and greater revenues – all of which serve to build a stronger co-operative.

I hope you have a happy, safe and enjoyable month.

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Peter Reidie
Farmlands CEO