Blog 4: How Stepping Out of the Bubble Changed Manuka Honey

JOURNEY 3 - SERIES 3 - BLOG 4 - A PART OF 4 BLOGS IN SERIES 3 - Reading time: 3 Mins

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One of the defining characteristics of successful entrepreneurs is their willingness to challenge accepted thinking and pursue opportunities others either cannot see or are unwilling to pursue. The story of how Kerry Paul introduced MGO Manuka Honey to the world is a powerful example of “stepping out of the bubble” — breaking away from established industry thinking, questioning accepted methods, and using evidence-based science to create an entirely new competitive landscape.   This case study highlights the international growth of Manuka Honey.  The journey also reflects the realities faced by many New Zealand start-up businesses.  These lessons provide valuable insights for New Zealand entrepreneurs.  The experience demonstrates the challenges and opportunities involved in Building a Global business from New Zealand.

Before 2007, the New Zealand manuka honey industry largely operated within a traditional framework. Producers promoted manuka honey using broad concepts such as UMF, Active, and NPA ratings, but the industry still could not scientifically explain why manuka honey possessed stable antibacterial activity. This lack of scientific clarity limited credibility with consumers, scientists, retailers, and medical professionals. The industry remained relatively small, niche, and constrained by conventional thinking.

Kerry Paul recognised that the industry had become trapped inside its own “bubble.” Existing players were comfortable with the status quo and resistant to major change. However, instead of accepting industry assumptions, he focused on identifying the actual compound responsible for manuka honey’s activity. Under his leadership, Manuka Health partnered with Thomas Henle from the Technical University of Dresden, whose research identified methylglyoxal (MGO) as the key antibacterial compound in manuka honey.

This discovery fundamentally challenged the existing industry narrative.

For the first time:

• The antibacterial activity of manuka honey could be scientifically explained

• MGO concentration could be accurately measured

• Consumers could directly compare product potency

• Scientists could validate manuka honey’s uniqueness

Rather than quietly using this discovery internally, Kerry Paul made a far more disruptive decision — he openly introduced the MGO grading system internationally. In 2008, Manuka Health launched the MGO rating system across global export markets, replacing vague antibacterial terminology with measurable science.

This was a major example of stepping outside conventional industry thinking.

At the time, many established industry participants resisted the move because it threatened existing grading systems and long-standing marketing approaches. The industry had become comfortable operating within traditional assumptions. Introducing scientific transparency forced competitors, retailers, and consumers to rethink how manuka honey should be evaluated and marketed.

Manuka Expose Newspaper was Launched to Counter Competitors Negative Public Relations

Kerry Paul’s willingness to challenge accepted industry practices demonstrated several characteristics associated with “stepping out of the bubble”:

Challenging Conventional Thinking

Instead of accepting the industry’s existing marketing systems, he questioned whether they genuinely explained manuka honey’s value. He recognised that global consumers increasingly wanted evidence-based natural health products rather than vague wellness claims.

Using Evidence-Based Perspectives

Rather than relying on tradition, the MGO system was built upon scientific measurement and published research. This shifted manuka honey from a loosely defined natural product into a scientifically validated premium healthcare category.

Taking Strategic Risks

Introducing MGO marketing created significant resistance within the industry. Existing competitors opposed the change because it disrupted established commercial models. Kerry Paul nevertheless proceeded because he believed scientific transparency would ultimately build greater global credibility and demand.

Creating a New Competitive Landscape

By stepping outside the industry’s traditional “bubble,” Manuka Health fundamentally changed the basis of competition. The company moved the industry away from subjective antibacterial claims toward measurable bioactive science. This repositioned manuka honey as a premium global wellness product rather than simply another honey variety.

Journey 3 is now concluded.

Building a Successful Business

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