Australian co-packer LJM has formed a joint venture with New Zealand brand activation specialist Hoop to further expand the company’s international reach.

LJM, which employs over 500 people across seven sites in New South Wales and Victoria (50,000 sqm including Multipack LJM), moves approximately 60 million packaged products across 1000 SKU annually for national and global FMCG, food, beverages, spirits and pharmaceuticals companies.

LJM director and founder Lance Miles said the partnership will position the companies as leading retail co-packing specialists for New Zealand suppliers.

“LJM’s extensive experience in co-packing, combined with Hoop’s client facing marketing capability will be a formidable combination in New Zealand,” Miles said.

“There are currently no dedicated co-packing companies in this country. It is an untapped market waiting to be serviced. The joint venture will help leap frog the businesses to become the leading co-packing specialists in New Zealand.

“This is the first time a co-packing and brand activation company has partnered on this scale, specifically servicing FMCG brands. The commercial decision to partner with Hoop was influenced by their reputation in New Zealand, a shared FMCG target market and complimentary service offering. LJM’s size and scale will help drive the co-packing market in New Zealand.”

The aim of the joint venture is also to be the go-to service provider for all co-packing requirements in the New Zealand market, enabling local suppliers to design and build specialist promotional activities.

Hoop director Chris Hood said the co-packing industry in New Zealand is fragmented, opening up a gap in the market for a dedicated co-packer to enter and drive the industry forward.

“LJM’s strong co-packing track record, size, intellectual property and technology combined with Hoop’s marketing and promotional capabilities are expected to be embraced by FMCG brands,” Hood said.

“Hoop currently has a national field team of over 350 brand activators and a promotional logistics division. The LJM/Hoop partnership will be able to pre-build stock into displays and the national activator team will support the install and compliance process on the shop floor. A full- service circle of promotional activation will be provided.

“There is an evolving need for global brands to rework their stock packing to conform with local regularities and consumer information. Speed to market with full compliance of stock filled displays is a void the new partnership will fill.”