Takeover rejected: Comvita must win growth the hard way

Comvita, one of New Zealand’s most internationally recognised mānuka honey producers, has watched a proposed acquisition unravel after shareholder voting indicated insufficient support. The failed bid forces Comvita to continue operating as a standalone entity during a period marked by volatile demand and margin pressure in the global premium honey market.

The withdrawal of the offer signals that investors were unconvinced the deal appropriately valued the business. Export-dependent sectors in New Zealand have been under strain, and mānuka honey is no exception. The market is crowded, and prices have softened as competition increases from blended “mānuka-style” products in overseas markets. Shareholders appear to believe that the takeover did not reflect Comvita’s long-term strategic potential.

Comvita has been undergoing a multi-year transformation. This includes simplifying operations, reducing debt, and building direct-to-consumer digital sales channels — particularly in China, the world’s largest market for premium mānuka honey. China’s consumption rebound after COVID has been slower than expected, affecting demand for discretionary health products. Comvita had hoped the takeover would provide capital security while insulating the company from market volatility.

The collapse of the transaction now shifts the burden back onto management. Without the deal’s capital injection, Comvita must execute growth through internal efficiency, product innovation, and deeper penetration of e-commerce channels. Fortunately, direct online sales have higher margins than traditional distribution models, providing a potential pathway to profitability.

There’s also the brand value factor. Mānuka honey is unique to New Zealand, granting Comvita a compelling story around purity, traceability, and sustainability. The company owns its beekeeping operations — a strategic advantage, as traceability and authenticity are major concerns in the global honey trade. Protecting the “mānuka” name internationally remains a legal and marketing priority.

However, the company faces immediate tactical challenges:

• Export demand remains uneven.
• Input costs (land management, apiary maintenance) have risen.
• Inventory risk increases if consumer demand continues to soften.

Investors now expect leadership to prove that the company can create greater long-term value independently than through acquisition. Comvita must demonstrate consistent margin expansion and debt reduction — otherwise, another takeover attempt could surface, this time on different terms.

For now, the message to the market is clear: shareholders aren’t ready to surrender control.