Anagenix Limited

Starting Out

Anagenix began operating in 2010.  The aim was to be a producer of branded ingredients for global nutraceutical, and food and beverage companies.   The company started like most others, with a plan, capital, some science and highly skilled and motivated people.  Anagenix gained early success, sales, distributions, new investors, high growth, and market relationships.  The thinking was to develop innovative bioactive products from New Zealand horticultural and marine resources.  

The company’s two founders came from diverse backgrounds, one with a science and formulation background, and the other, Johnsco Investment, with experience of building technology companies for niche global markets.   Peter Fennessy then joined as chair, and in 2010, the founders invited in new investors.  The founders aimed to attract Maori as partners.  Fomana Capital, a boutique Maori investment company joined.  Anagenix is solely export-focused. 

Anagenix developed two branded ingredients, ACTAZIN™ and ApuraGreen™, both derived from New Zealand green kiwifruit.  ACTAZIN™, a powdered ingredient for digestive support and laxation, being a prebiotic and also contains a unique combination of kiwifruit nutrients and bioactives.  ApuraGreen™, is a paste designed for baking and food preparation with three platforms:  Reduction of salt, sugar and fat; Enhancement of shelf life and flavours; and Prebiotic supporting gut microbiota.  The company achieved good sales focusing on business to business.  A clinical trial was undertaken with ACTAZIN™ and a gold kiwifruit ingredient called LIVAuX™.  The result was published and provided scientific substantiation of the products.

Transition from ‘Product Innovation to Innovating to Meet Peoples’ Needs’

After five years in market and with a deeper understanding of consumer insights, the company became aware that there were emerging risks with its current business model.   So the board asked one question, which fundamentally changed our attitude.  “What is important to people when it comes to healthy living and nutrition?”   This question and the subsequent design thinking that followed saw a strategic shift.  The company went from product innovation to innovating to meet peoples’ needs.  

Food Health Relationship - Growth of Gut Health Awareness

Anagenix became aware of the growing investment in gut health and the food-health relationship and the convergence of pharmaceuticals and nutrition.   The three directors, Peter Fennessy, Chris Johnson and Wayne Mulligan decided to fundamentally turn the company on its head.  Anagenix is now a group with the core business of designing and developing nutraceutical, nutritional products and IP.  It has positioned itself in the gut health, and dietary intervention health benefit spaces with a focus on NZ bioactives. 

“Anagenix’s journey has shifted from a focus on products to people.  We are a group that integrates a design approach through insights with fast prototyping in-market.  We incubate ideas and commercialise, we secure IP and match the demand for relevant in-market information with information about potential ingredients from New Zealand.” 
Chris Johnson, Group Managing Director.

Design Thinking – A model specific to Anagenix

A key foundation of the change has been the recognition of the need for greater consumer insights and understanding where Anagenix needs to be positioned in the market.  All staff participated in design thinking courses, the executive team attended the Queenstown Agribusiness events (using the Harvard Case Study approach), the Executive Director attended the 2014 Stanford Bootcamp, and in 2015 there was a SAP design thinking program through Te Hono. 

Wayne Mulligan views Iti-Nui as niche action:  small and strategic actions that compound.  These small (Iti) compounding actions enable niche participation in large and complex markets (Nui). 

Success

• Clinical Trial: ACTAZIN™ - LIVAuX™ completed; statistically significant results achieved and published in a peer reviewed journal (http://www.nrjournal.com/article/S0271-5317(15)00071-8/abstract ). 
• ACTAZIN™: Verified as non-GMO by the global body The NON-GMO Project.
• Kiwifruit Digestive Health Portfolio: Selling 4 digestive products and associated IP.
• Deloitte Technology Fast 500: Rated 53^rd fastest growth technology company in Asia-Pacific 2014 and ranked number 6 in New Zealand in this report.
• Influenced by Innovations: Radically changing the mindset of staff. 
• Anagenix Way - Group of companies that are designed for specific pain points:
  • Anagenix International:  prototype products in markets
  • Anagenix IP: IP enhancement
  • Biogenix: assist organisations to commercialise concepts
  • New Zealand Bioactives: data profiling for markets.
• Securing 6 International Distributors: Anagenix has gone from one global distributor to 6 regional distributors.
• NZTE International Growth: Included in the NZTE International Growth program, Better by Design and Fresh Thinking.
• Business Designers: In prototyping

Coupled with these Anagenix has established offices in Wellington, Auckland and Singapore, strengthened the scientific team and secured a person with experience as a multi-national global marketing manager.

Next

Strengthen the balance sheet, and bring in new strategic investors who are globally-focused.