Following a period of operational disruption and packaging inefficiencies, Havana Coffee Works undertook a competitive tender involving six flexible packaging suppliers.

Snell was selected based on its technical capability, local support and ability to provide a packaging solution suited to Havana’s growing production requirements.

Working with Snell’s Flexible Packaging specialists contributed to an improvement in Overall Equipment Effectiveness (OEE) from 45% to 85%. This support came at an important time, with Havana’s sales increasing by 63%.

Prior to the tender, Havana’s existing packaging arrangement was not providing the level of technical and local support required by the growing business. Havana’s Supply Chain Director, Scott Pepler, described this period a difficult period of packaging-related disruption due to the ongoing operational challenges and inefficiencies experienced.

Delivering Proof, Not Promise

As many forward-looking New Zealand companies are working to meet their ESG obligations and commitments, we have seen a subsequent focus on certification and compliance.

LION, Havana’s parent company, requires the stringent validation of any claims relating to ESG and compliance. For that reason, it is essential that Havana partners only with businesses who can provide evidence of ESG compliance at every stage of their supply chain.

Due to our FSSC 22000 certification, Snell only partners with top tier suppliers who can meet our stringent standards. We also depend on the expertise of our Snell China team who are on the ground to ensure compliance and quality at every stage of the flexible packaging production process.

During a joint trip to China, Snell’s New Zealand-based flexible packaging specialists and our local Snell China team guided Sam Keall, Havana’s Marketing Manager, through the process of a press pass at the factory producing their new packaging. This process further reinforced Snell’s commitment to delivering proof, not just a promise.

Pictured: Team Snell and Sam Keall meet our China-based supplier and conduct a press pass

Reflecting on the experience, Sam says:

“Prior to the trip with Snell, I had no experience with press-passing, so I didn’t know what to expect. The factory visit ran very smoothly. I never felt rushed and I was encouraged to not give approval until I was 100% happy”.

The change in supplier also allowed Havana’s Marketing team to implement changes to their artwork and consolidate their range.

During the RFP phase, Snell’s Flexible Packaging specialists worked closely with Havana to balance the often competing priorities of their ESG, Marketing and Production stakeholders.

The following graphic contrasts the Snell approach with that of the incumbent to illustrate how the drivers of production, ESG and marketing were balanced to achieve an optimal result for Havana:

Key Achievements Include:

• The new structure maintained New Zealand Soft Plastics compliance
• The new structure increased the operating window resulting in an 89% increase in OEE
• A significant reduction in waste.

Snell’s Packaging Technologist, Imran Khan, says:

"Flexible packaging projects often require balancing the priorities of multiple stakeholders. In working with Scott, Sam and the broader Havana team, we were able to retain a soft plastics recyclable solution that maintained the desired brand representation while significantly improving manufacturing performance.

By reformulating the film structure, we created a more robust operating window that helped deliver an 89% increase in OEE, alongside maintaining compliance, certification and environmental outcomes aligned with Havana's ESG objectives.

It's a strong example of how effective packaging design can deliver stronger brand outcomes, higher productivity and a platform to support a business for future growth”.

Transitioning from a Transactional Supplier to The Trusted Advisors

Following a challenging year, including operational disruption and limited local support, Scott was looking for a supplier willing to have honest conversations, take ownership and work closely with Havana. This led Havana to review the market through a competitive RFP process and ultimately transition from its incumbent supplier.

“I’ve been in the coffee industry for 35 years, and this was one of the smoothest transitions I’ve been part of. As Snell ran trials during the RFP stage, we had a high degree of confidence that they would be able to deliver before we committed to partnering with them,” says Scott.

Since transitioning to Snell, Havana’s OEE has increased from 45% to 85%, an improvement Scott describes as “world-class”. This, along with other business performance measures relating to production and ESG compliance, is now proudly reported by Havana to its parent company, LION.

These production improvements have also coincided with sales growth of 63%. Scott acknowledges Snell’s support during this period, saying: “Having a reliable packaging partner with strong technical and local support has helped us manage this level of growth.”

Looking Ahead

Havana continues new product development as they’ve seen growth in the in-home fresh coffee market as consumers look for opportunities to reduce their spending. At present, a trial is underway with Snell to further downgauge the film to reduce plastic usage. For Havana, this will offer benefits under the environmental pillar of ESG while also delivering cost savings.

“Trust is the most important element to me. The local support and expertise that the Snell specialists offer mean that a transition which was a significant business risk was completed successfully and it’s more than paid off. It’s allowed us to deliver on the high expectations of both LION and our customers”, says Scott.

The Snell Advantage For Flexible Packaging

The Snell Advantage for Flexible Packaging combines:

• Surety of supply during a volatile global climate characterised by uncertainty
• Access to the trusted advisors from our in-house specialist network, such as international procurement, flexible packaging and compliance
• A commitment to certification and compliance as one of the first warehousing companies in New Zealand to hold FSSC 22000, a GFSI-recognised food safety certification.

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