Canterbury to build U.S. luxury yachts

Press, 9 June 1986, Page 29

Canterbury to build U.S. luxury yachts

By

NEILL BIRSS

A Canterbury boatbuilder will make Ameri-can-designed yachts for sale in the United States. Behind the venture are two joint-venture companies, So-Pac Marine Ventures (N.Z.), Ltd, which will build and own the vessels, and So-pac Marine Ventures, Inc., which will import them into the United States and market them. Strada Investments, Ltd, of Auckland is putting about $700,000 into the project, taking shareholdings in both companies. Its partners will include the firm of Mr Peter Rachtman, head of a Seattle consultancy to a number of New Zealand businesses. For the infant Christchurch export yacht industry, the venture offers the chance to step up to a larger market. Mr Clyde Collins, of Canterbury Exports, Ltd, said his firm had sold three New Zea-land-designed yachts in the 18 months since it was set up, and was building its second 52ft motor launch.

He expects the Ameri-can-designed craft, the South Pacific 42, to increase output, and hopes the staff of 14 at Canterbury Marine can be increased substantially.

The South Pacific 42 is 42ft long with a beam of 13ft 3in, has a wing keel, and is more luxurious than the traditional New Zealand yacht. Mr Collins, a former national motor-racing champion and national jet-boat representative, has competed in two Southern Cross yachting series as well as in the One-Ton Cup and Admiral’s Cup series. The catalyst of the deal is Mr Rachtman, an American entrepreneur who lived for a time in Auckland, where he took up yachting. His business background is advertising, promotion, and public relations. He married a New Zealander, and the couple settled in Seattle five

years ago, setting up a consultancy, South Pacific Associates.

The firm acts as an export marketing consultant to New Zealand manufacturers. The firm imports marine products from New Zealand, including ropes, pumps, and ladders. In most cases it is the single largest customer for the product of the firm it represents. It is now also importing marine products from Australia and Europe. It has participated in the importing of the Laurie Davidson-designed racing yachts built by Mr Collins’s Canterbury Marine Export, Ltd; with Pacific Sundance, the Bruce Farr One-Tonner; and with a Farr onetonner built at Whangarei.

In 1984, Mr Jerry Truax joined South Pacific Associates. He had worked for one of America’s biggest yacht importers co-ordi-nating the work of the designer (mostly Robert Perry), Taiwan yards, and the importer.

The American marketers find that they have been over optimistic about the potential for New Zealand designed and built yachts. There are now unsold craft from this country in the Pacific states.

Mr Rachtman, who was in Christchurch last week, and his associates analysed the United States market. They found that the typical buyer of a yacht of about 40ft was different from the typical New Zealand yachtsman. Rather than someone who had grown up in yachting, working his way up from P-class, and who used the craft for racing and family holidays, the typical American buyer was a professional or business person, often without previous yachting experience. He wanted a family cruising craft.

The American would base his yacht at a marina, with full facilities, including electricity, and would expect to

entertain guests aboard at the marina. The American required a more comfortable vessel. He wanted a stall shower rather than a hand-held shower in the yacht’s head (lavatory), for example.

Mr Rachtman and his associates decided to produce a yacht to fit the demand indicated by the market research, but to have it built in New Zealand. They picked Mr Collins’s Canterbury Marine Exports. The American gives four reasons; the firm’s craftmanship; Christchurch’s labour rates — cheaper than Auckland’s; satisfaction in previous dealings with the firm; and Canterbury Marine Exports keeps in touch with the North American market by its directors making frequent visits. Robert Perry, a top American cruising yacht designer, was commissioned for the design. Perry’s mother was born at Rotorua, and though he had not been to this country, he had great affinity with the project, Mr Rachtman said. The yachts will sell in America for between $U5155,000 and SUSIBS,OOO. The attraction of New Zealand-made yachts of American design is lower construction costs. But why not go to Taiwan, where the labour cost is at least 20 per cent lower than in New Zealand? "We are not offering a bargain yacht: we are selling quality at a good price,” Mr Rachtman said. He did not need to say that the words, "made in Taiwan,” may still detract from a luxury product.