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LANZBC Newsletter February 2015
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This Edition

Dear Members,
 
Welcome to our first edition for 2015.

We are working hard to raise the profile and impact of the Council and to provide our members with relevant events and privileged, firsthand information about trade and politics with the region. The Council aims to provide pragmatic information about doing business with Latin America, and for expanding the horizons of Latin American businesses in New Zealand.
The Council is currently finalising its events calendar for 2015 and is looking to provide events covering a wide variety of topics and industries. Events will be promoted in advance on the LANZBC website and through the Council newsletter. Please see Council News section below for further details on some potential upcoming events. We hope you will take advantage of the variety of events and topics available to you in the year ahead.
 
The Council’s newsletters will now be published monthly, and we trust you have enjoyed the wide variety of content and the revised format. With effect from the April 2015 issue, newsletters will only be sent to members, honorary members and patrons. The newsletter often brings links and attachments to privileged information, and therefore the Council has decided to restrict the distribution of our newsletter in order to give our members the priority their membership warrants

Membership subscriptions for 2015 have been sent out via email and payment is due by 28 February 2015. Should you have any questions regarding your membership, or if you have not received an invoice, please contact Heather Kawan by email: heather.kawan@lanzbc.co.nz . Should you wish to join the Council to ensure you receive the full benefit of Council membership, please click here. Members are encouraged to promote their business on the Council website, and are entitled to priority registration and subsidised event fees.
 
We hope you have witnessed for yourself the advantages of being associated with the LANZBC over the last twelve months and we encourage you to provide any feedback that can help us offer a better service as a Council.
Special notice: To all members with an interest in Costa Rica: Next week will see a visit by Trade Minister Alexander Mora Delgado  to New Zealand. Members who will be in Wellington on Wednesday, 25 February, and would like to attend a possible event with the Minister are asked to contact Heather, our Secretary, at heather.kawan@lanzbc.co.nz. Spaces are strictly limited and will be allocated to those who respond first.


Council News

EVENT PLANNING FOR 2015
The Council is currently finalising its events calendar for 2015. We intend to offer a broad geographic spread of events, including seminars in the Waikato and Canterbury, as well as Auckland and Wellington. Our events will continue to focus on the issues New Zealand and Latin American organisations face in working cross-continentally as well as providing excellent networking opportunities. All events will be promoted in advance on the LANZBC website and through the Council newsletter. 

The Council hosted a number of popular events in 2014. Some of the highlights were: 
  • a lively and enlightening seminar from Charles Spillane – Auckland Airport’s General Counsel and General Manager Corporate Affairs – regarding the airport’s unique opportunity to be 'southern hub between the growth markets of Australasia, Asia and South America’.
  • an ‘Opportunities for Canterbury in Chile and Colombia’ seminar, held in September in Christchurch, featuring presentations by the Ambassador of Chile, H.E. Isuaro Torres Negri and the Consul-General of Colombia Juan Cadena;
  • a ‘Focus on Latin America’ seminar jointly hosted by the LANZBC and Victoria University for Links to Latin America (‘VILLA’) in April which enjoyed Trade Minister Tim Groser as the key note speaker. 
 
SAVE THE DATE

Below are some key dates to diarise. More information will be provided in due course

 
Tuesday March 10, 2015 - Evening event in Wellington with MPs, from the main political parties to discuss their parties' views on Latin America
 
Monday March 23, 2015 - Evening event in Auckland on practical tips for doing business in Latin America, followed by the LANZBC Special General Meeting to approve an audit of 2013 accounts and proposed changes to the constitution
 
Tuesday  April 28, 2015 - Annual General Meeting
If you are running an event, that relates to business between New Zealand and Latin America, please email us at info@lanzbc.co.nz as we may be able to promote it via our newsletter.
LANZBC WELCOMES NEW MEMBERS
Please welcome Viva Expeditions and Denton Morrell as new members to the Council. We are delighted to have them join us and look forward to seeing them at our events and offering the Council’s connections and networking opportunities to help raise their profiles.
Viva Expeditions are specialists in travel to Latin America with a team of experts to help plan the perfect South America travel adventure. Their passion for the continent, its people and landscapes coupled with their firsthand knowledge and experience, make them hard to beat.  To find out more about the packages they can put together, visit www.vivaexpeditions.com 

 
Denton Morrell is a boutique financial services business, operating from Auckland, but with global reach and particular experience of the Latin America market.
They provide solutions to entrepreneurs, private clients and household name corporations and institutions. They offer a variety of products including trust and estate planning, the establishment and operation of co-investment vehicles (such as funds and private equity vehicles), tax advisory and inbound and outbound investment. Find out more from their website: www.dentonmorrell.com


Current Developments

New Zealand & Latin American Relations
 - THE KIWI AND THE CONDOR -
AIR NEW ZEALAND LINKS LATIN AMERICA TO ASIA 
VIA NEW ZEALAND
Air New Zealand announced in December last year that it will operate direct Boeing 777-200 transpolar flights to Buenos Aires from Auckland on a code-share basis with Aerolíneas Argentinas as from December, 2015. 

The airline recently informed LANZBC that it has achieved Branch Registration in Argentina, which is a major step in doing business with the region.  The airline also confirmed that that we can expect to see more coverage of Buenos Aires in the New Zealand media soon, as Air New Zealand begins its Media familiarisation programme with the first group of New Zealand and Australian journalists heading there next month (March 2015). 
LEFT IMAGE: Christopher Luxon, Air New Zealand CEO, announcing the new route. RIGHT IMAGE: All Blacks Captain Richie McCaw amongst Rugby supporters.
You can read an article about the deal and its background, which was published on the Buenos Aires Herald (Dec 2014) by Thomas Manning. Read the full article hereManning, is  one of our longest-serving LANZBC directors, the former Vice President, and a contributor to the Buenos Aires Herald. He is also Director of Manning Group, a New Zealand based company which helps New Zealand exporters of goods and services grow their businesses. 

To read more recent information on the development of this new service and how Air New Zealand's alliances in Asia could help open the door for flying to South America click here.
Below are some images from the announcement party to celebrate the new route that will start operating in late 2015. 
TOP IMAGE, Left to right: H.E. Fernando Escalona, Ambassador of Argentina to New Zealand; HON Stephen Joyce, Minister of Economic Development; Mr Stephen Jones, Chief Strategy, Networks & Alliances Officer & Mr Matthew O'Meagher, LANZBC President.
Air New Zealand celebrated this major achievement in a very Argentinean way by  recreating the bohemian La Boca neighbourhood in Buenos Aires, famed for its colourful houses, its tango and its soccer team. 
GOVERNMENT OFFICIALS FROM PERU
TO STUDY ENGLISH IN WELLINGTON 
Accent Learning, part of Victoria University's business arm Victoria Link Ltd, is hosting government officials from Peru for three weeks in February/March.
The Peruvian officials will spend most of their time in Wellington as participants in the ELTO (English Language Training for Officials) programme. The programme is funded by the NZ Aid Programme, within the Ministry of Foreign Affairs and Trade.

The purpose of this intensive language training course is for participants to improve their English language skills in order to effectively lead and participate in policy discussions at the Asia Pacific Economic Cooperation (APEC) forum in 2016 which will be hosted by Peru. There will be 16 participants aged between 25 and 60.
PROJECT COORDINATOR IS SOUGHT  TO WORK ON A FOUR YEAR DAIRY DEVELOPMENT PROGRAMME IN COLOMBIA 
AgriBusiness Group Ltd is a New Zealand primary sector research and consultancy business that has been operating for fourteen years.  It is currently establishing a four year dairy development programme in Colombia, and is looking for a project co-ordinator who will be based in Colombia. 
The project will work with Colombian Government agencies, private sector and farmers to assist Colombia in improving the performance of Colombian small to medium sized dairy farmers in the High Tropic Region, by providing them with access to New Zealand expertise. The project will involve the adaptation of New Zealand dairy farming systems to suit Colombian conditions and the subsequent validation  and demonstration of these. To see further details of the project and the job description. Read more


Member Highlights

Sharing our members' stories and success
CBL INSURANCE ACQUIRES STAKE IN MEXICAN INSURER
The Council would like to congratulate CBL Insurance, one of our LANZBC members, who has closed on a transaction to acquire a 35% shareholding in Afianzadora Fiducia, S.A. de C.V. (Fiducia): www.afiducia.com
Fiducia is a small specialist Bonding & Surety Insurance  company supervised by the Comision Nacional de Seguros y Fianzas and authorised by the "Secretaria de Hacienda y Credito Publico.

This 35% acquisition provides an ideal vehicle through  which CBL can enter the Mexican bonding & surety market. It gives CBL a foothold  in Mexico and the additional  capital invested into Fiducia will allow it to expand its business further.

Peter Harris, Managing Director of CBL, said that "CBL's investment  in Fiducia represents a further commitment  to the Mexican insurance and bonding market.  We think that this investment  will pave the way for additional business opportunities in Mexico, and to enable us to leverage the relationships that our partners in Fiducia have already got in the Mexican market".
Guillermo de Velasco - Executive Chairman of Fiducia said" We welcome the investment and we are looking forward to the growth  opportunities  that this will create for both Fiducia and our friends at CBL from New Zealand"
AN UNEXPECTED JOURNEY IN THE LATIN AMERICAN MARKET
Murray Holdaway; Vista Entertainment Solutions
Vista started in 1996, when its founder and Chief Executive, Murray Holdaway (on the left), was asked by a global cinema company to produce ticketing software to 'enhance the cinema experience'. The result was ground-breaking technology, which has been constantly innovating and 
growing.  
Here he tells us his experience in entering the Latin American market.

Founded in Auckland, New Zealand in 1996, Vista Entertainment Solutions is the world’s leading cinema management software solutions provider.
 
Since its inception, Vista software has been installed in cinemas in more than 60 countries around the world, holding an estimated 37% market share of the large cinema circuit market globally.  Of those countries, over a dozen  are located in Spanish-speaking Latin America.
 
Market entry was achieved in Argentina in 1996 making Vista one of the earliest New Zealand software companies to establish a foothold in Latin America. From this pioneering position, Vista has continued to work within its sector and with relevant government organisations to grow Vista and boost New Zealand trade in Latin America.  In the early days of entry into Latin America, NZTE was an important partner for Vista, and that agency has maintained relationships with Vista’s resellers in the region. 
At the outset, Vista deployed a direct marketing strategy, gaining its foothold in Argentina through an existing business connection with Village Cinemas; Vista secured a contract with cinema exhibitor Village Cines SA and the installation of Vista software began in October 1997. 
Village Recoleta (a Villages Cines cinema site located next to La Recoleta Cemetery, burial ground of Eva Perón) was the first ‘Vista’ site in Buenos Aires with installation there part of a roll-out plan that extended across Argentina to other sites.
 
Subsequently, in 2001, Vista determined an accelerated growth path for its Latin American export business by forming an agreement with the Mexican technology firm Senda Dirección Tecnológica.
 
Vista first met Senda at a trade show in Las Vegas. Within months of appointing Senda as a Vista Business partner, Senda had closed a sale with Cinemex – the second largest cinema circuit in Latin America.
 
With Senda granted the right to sell Vista software throughout the Spanish-speaking Americas, the partnership allowed Vista to run their entire Latin American strategy from Mexico City.  Senda built their business around Vista, becoming a dedicated and focused reseller with the immediate strategic advantages of local and regional market intelligence and proximity to other Latin American countries. The rapid growth in customers that Senda achieved helped to forge a strong relationship with Vista. There is now much more than just a business partnership between the two companies, with close personal friendships and fellowship between team members.
 
“If you give us any credit, we made a good decision about those guys!” – Murray Holdaway.
 
Working with a local partner provided opportunity for Vista to embrace the business culture ‘on the ground’, where practices can differ markedly from customs at ‘home’. Operationally, Vista adapted to local diversity and adopted a flexible business model to cater to a slower pace of deal-making and to country-specific norms.  Senda offered insights to Vista, such as tailoring licensing, maintenance and service agreements to the characteristics of the market.  Vista’s pricing structure was also considered in the local context.   
 
For example, significant legal requirements for commercial licensing, certification, and government taxation (strict to counter widespread fraud and corruption), saw Vista amend its licensing agreements and invoicing policies to comply with Mexican tax laws.  Also common was the practice of “bundling” services with product fees, since charging independently for service staff time is not always accepted. There is often a notion of “if you sell me a product – the price should include all the service time to install it and make it work”.
From a sales perspective, establishing a ‘gateway’ in Mexico and forming a reseller partnership there was essential to Vista’s ability to attract and leverage several major strategic customers.  In particular, the Mexican-based chains Cinépolis and Cinemex (the 4th and 6th largest cinema chains respectively in the world), have enabled Senda to springboard into winning Vista business elsewhere in the region.  In addition Vista is a significant supplier to Cinemark across a number of Latin America countries. Cinemark are based in Dallas and are the 3rd largest cinema operator in the world. Their combined geographic footprint has introduced Vista as the standard for cinema exhibition software in Spanish-speaking Latin America. To date, Vista has captured a 60% market share of large cinema circuits within the region, with current revenue exceeding NZ$5million per annum on the back of these strong relationships.
 
Much of the additional room for growth comes from the largest Latin American economy, Brazil.  The complexity of Brazil’s regulatory environment as well as the challenge of a new cultural context in which Brazilian Portuguese is the predominant language means Vista cannot simply seek to enter this market on the back of established business relationships. As Chief Executive Murray Holdaway stresses, Latin America should not be considered a single market. Vista is adapting its existing regional strategy for Brazil, and in 2015 Vista is looking to a new recently appointed strategic partner for the task of capturing market share in Brazil. 



Latin American News Links

LATIN AMERICAN ECONOMIC OUTLOOK FOR 2015
The Latin American Economic Outlook is the OECD Development Centre’s annual analysis of economic developments in Latin America. This edition's focus is on the role of education, skills and innovation and published on www.latameconomy.org, a very resourceful site for information on Latin America.
You can consult the country notes for a quick overview of recent trends and policy changes in education of 10 Latin American countries. You can also read the entire report online via this link or, if you wish, purchase a pdf version from the same link.
 
UNITED STATES EASES RESTRICTIONS ON
IMPORTS FROM CUBAN INDIVIDUALS
The United States eased restrictions on imports of goods and services from private Cuban entrepreneurs as part of Washington's rapprochement with Havana after more than half a century of enmity. A full list of the exclusions can be found on the State Department website.
Read more
BEYOND BRAZIL: DIGITAL TRENDS IN LATIN AMERICA
The beginning of the year is always an exciting time to pore over recent trends and to make predictions as to what the next 12 months might hold for the global digital landscape. 
IMAGE: Brazilian data

The latest update of Econsultancy's  Internet Statistics Compendium  bring together key data from their own research, alongside a wealth of freely available secondary research from around the web.     Read more.
CHINA, RUSSIA LEADERS SEEK SOUTH AMERICAN INROADS 
During overlapping visits to Latin America, the leaders of China and Russia have been welcomed with open arms by governments that are among the most hostile to Washington, including Cuba, Nicaragua and Venezuela. Together with stops in Argentina and Brazil, which both have distanced themselves from the U.S. in recent years, the tours underscore the mix of ideology and economics that's allowing the two superpowers to expand their influence in America's backyard. Read more
AGRIBUSINESS REPORT: LATIN AMERICA

This article was published in July 2014, but as it still contains very relevant information we decided to share it with our LANZBC members.
"While some of the industries may be 20 years behind us, they're not going to take 20 years to catch up," said Matt Macfie, of Gallagher. This epitomises the approach of the increasing number of New Zealand agricultural businesses with involvement in Latin America, many of whom deliver value propositions to the South American agricultural industry which aim to lift performance and productivity to parallel New Zealand farming standards.    Read more.



Arts & Culture

FIESTA LATINA - GOVERMENT HOUSE, MT EDEN, AUCKLAND
Go with friends and family to Fiesta Latina, this year’s Outdoor Summer Concert, and soak up the latino vibe in the elegant grounds of Government House, Mt Eden.
Pre-concert from 1pm, the Henrique Morales Quartet sets the scene for this musical fiesta, followed by popular Latin-inspired orchestral music and arias including Bernstein’s West Side Story Overture, Lloyd Webber’s 'Don’t Cry For Me, Argentina' and the exciting Huapango by Mexican percussionist/composer José Pablo Moncayo.

The afternoon is hosted by Radio New Zealand’s Head of Content, Carol Hirschfeld. Grab a picnic (or purchase with your ticket) and immerse yourself in the exotic sounds of this Hispanic musical extravaganza.

BOOK online at apo.co.nz or call the APO Ticketing team on 09 623 1052.
Group bookings: 19% discount for 8 or more tickets plus one free ticket for every 8 purchased – ring the ticketing office on 09 623 1052 to make your booking.

When: 2:00pm, Saturday, 7 March
Where: Government House, Mt Eden, Auckland



Facts & Figures

In this section we will bring some facts and figures about Latin America that will give you an insight into the market, the culture or at least make you look smart if you drop it in a conversation when entertaining a client or at a business meeting.
  • Curitiba, the capital city of southern State the of Parana, Brazil, is amongst the world's most eco-friendly cities to live in. - Source: BBC.com
  • The New Zealand Aid Programme offers scholarships to people from 16 Latin American countries - Source: NZ Aid Programme
  • Most Costa Ricans do not usually say things up front because doing so is considered bad manners. If a person is very direct, “ticos” (Costa Ricans) might think he or she is rude. They avoid saying ‘no’,  with the purpose of not hurting other people’s feelings. - Source: Pocket Cultures
  • Colombia is one of seven countries that the United Nations has identified as major future food exporters. Just about any crop, from broccoli to mangoes, is grown somewhere in Colombia - Source: tomfeiling.com
  • Nicaragua, the Central American country, which is bigger than Portugual or Ireland, was the first country in Latin America to be governed by a woman: Mrs Violet Barros de Chamorro (1990) - Source: orotravel.com
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