capilano honey case study

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• Front Microbiol

Therapeutic Manuka Honey: No Longer So Alternative

Dee a. carter.

1 School of Life and Environmental Sciences, University of Sydney, Sydney, NSW, Australia

Shona E. Blair

2 The ithree institute, University of Technology Sydney, Sydney, NSW, Australia

Nural N. Cokcetin

Daniel bouzo, peter brooks.

3 University of the Sunshine Coast, Maroochydore, QLD, Australia

Ralf Schothauer

4 Comvita NZ Limited, Te Puke, New Zealand

Elizabeth J. Harry

Medicinal honey research is undergoing a substantial renaissance. From a folklore remedy largely dismissed by mainstream medicine as “alternative”, we now see increased interest by scientists, clinical practitioners and the general public in the therapeutic uses of honey. There are a number of drivers of this interest: first, the rise in antibiotic resistance by many bacterial pathogens has prompted interest in developing and using novel antibacterials; second, an increasing number of reliable studies and case reports have demonstrated that certain honeys are very effective wound treatments; third, therapeutic honey commands a premium price, and the honey industry is actively promoting studies that will allow it to capitalize on this; and finally, the very complex and rather unpredictable nature of honey provides an attractive challenge for laboratory scientists. In this paper we review manuka honey research, from observational studies on its antimicrobial effects through to current experimental and mechanistic work that aims to take honey into mainstream medicine. We outline current gaps and remaining controversies in our knowledge of how honey acts, and suggest new studies that could make honey a no longer “alternative” alternative.

Introduction

Honey has been used as a medicine throughout the history of the human race. One of the most common and persistent therapeutic uses of honey has been as a wound dressing, almost certainly due to its antimicrobial properties. With the advent of highly active antibiotics in the 1960s, honey was dismissed as a “worthless but harmless substance” ( Soffer, 1976 ). However, the current and growing crisis of antibiotic resistance has revived interest in the use of honey, both as an effective agent in its own right and as a therapeutic lead to develop new methods of treatment. Honey is usually derived from the nectar of flowers and produced by bees, most commonly the European honey bee Apis mellifera , and is a complex mix of sugars, amino acids, phenolics, and other substances. Honey types derived from different flowering plants vary substantially in their ability to kill bacteria, and this has complicated the literature on honey and made it sometimes difficult to reproduce results across different studies ( Allen et al., 1991 ; Irish et al., 2011 ). The majority of recent studies investigating the mechanism of action of honey have focused on well-characterized, standardized active manuka honey produced by certain Leptospermum species native to New Zealand and Australia, which has been registered as a wound care product with appropriate medical regulatory bodies. Thus, unless otherwise specified, this review will focus on manuka honey.

Chemical Analyses of Active Manuka Honey

Professor Peter Molan of Waikato University, New Zealand, was the first to report the unusual activity of manuka honey and began testing its action against a wide range of different bacterial species in the mid 1980s. However, while it was clear that even low concentrations of manuka honey killed bacterial pathogens, the specific active ingredient responsible for this remained elusive for many years. High sugar and low pH make honey inhibitory to microbial growth, but activity remains when these are diluted to negligible levels. Many different types of honey also produce hydrogen peroxide when glucose oxidase, which is derived from the honey bee, reacts with glucose and water. However, in manuka honey hydrogen peroxide production is relatively low and can be neutralized by catalase, yet activity still remains. The cause of this remaining activity, dubbed “non-peroxide activity” or NPA, was finally revealed in 2008, when two laboratories independently identified methyl glyoxal (MGO) in manuka honey ( Adams et al., 2008 ; Mavric et al., 2008 ). MGO results from the spontaneous dehydration of its precursor dihydroxyacetone (DHA), a naturally occurring phytochemical found in the nectar of flowers of Leptospermum scoparium, Leptospermum polygalifolium , and some related Leptospermum species native to New Zealand and Australia ( Adams et al., 2009 ; Williams et al., 2014 ; Norton et al., 2015 ). MGO can react relatively non-specifically with macromolecules such as DNA, RNA and proteins ( Adams et al., 2008 ; Mavric et al., 2008 ; Majtan et al., 2014b ), and could theoretically be toxic to mammalian cells ( Kalapos, 2008 ). However, there is no evidence of damage to host cells when manuka honey is either consumed orally or used as a wound dressing; indeed honey appears to stimulate healing and reduce scarring when applied to wounds ( Biglari et al., 2013 ; Majtan, 2014 ; Dart et al., 2015 ). How it exerts this apparently selective toxicity to bacterial cells is not known.

High levels of MGO or hydrogen peroxide usually produce the most active honey, however, the correlation is not always perfect suggesting other components of honey may modulate activity ( Molan, 2008 ; Kwakman et al., 2011 ; Chen et al., 2012 ; Lu et al., 2013 ). Bee defensin-1, an antimicrobial bee-derived peptide is responsible for activity in Revamil honey, an active honey produced from an undisclosed source, but this appears to be structurally modified and inactive in manuka honey ( Kwakman et al., 2011 ; Majtan et al., 2012 ). The level of leptosin, a glycoside found exclusively in Leptospermum honey, correlates with potency and may modulate the antimicrobial activity of manuka honey ( Kato et al., 2012 ). Similarly, various phenolic compounds with potential antimicrobial activity can be present, particularly in darker colored honeys, and although these occur at levels that are unlikely to be inhibitory on their own they may synergize with one another or other components of honey to produce or alter activity ( Estevinho et al., 2008 ; Stephens et al., 2010 ). Phenolics can also act as antioxidants and may be responsible for anti-inflammatory and wound-healing properties of honey ( Stephens et al., 2010 ). It should be noted that not all Leptospermum species produce active honey, and even within L. scoparium and L. polygalifolium honey MGO levels can range from ∼100 to >1200 ppm ( Windsor et al., 2012 ). A survey of Australian honey activity found honey sourced from Leptospermum plants growing around the New South Wales–Queensland border was particularly active, but whether this is due to plant, soil, climate or other factors is not known ( Irish et al., 2011 ).

The Inhibition of Pathogens by Honey

Honey has been tested in vitro on a diverse range of pathogens, particularly those that can colonize the skin, wounds and mucosal membranes, where topical honey treatment is possible. To date, in vitro assays have found manuka honey can effectively inhibit all problematic bacterial pathogens tested (summarized in Table ​ Table1 1 ). Of particular interest is that clinical isolates with multiple drug resistance (MDR) phenotypes have no reduction in their sensitivity to honey, indicating a broad spectrum of action that is unlike any known antimicrobial ( Willix et al., 1992 ; Blair and Carter, 2005 ; George and Cutting, 2007 ; Tan et al., 2009 ). In addition, attempts to generate honey-resistant strains in the laboratory have not been successful and there have been no reports of clinical isolate with acquired resistance to honey ( Blair et al., 2009 ; Cooper et al., 2010 ).

Bacterial species found to be susceptible to therapeutic manuka honey.

As well as inhibiting planktonic cells, honey can disperse and kill bacteria living in biofilms. Biofilms are communities of cells that are generally enclosed in a self-produced extracellular matrix and found adhering to surfaces, including wounds, teeth, mucosal surfaces, and implanted devices. Microbes resident in biofilms are protected from antimicrobial agents and they can cause persistent, non-resolving infections. Manuka honey disrupts cellular aggregates ( Maddocks et al., 2012 ; Roberts et al., 2012 ) and prevents the formation of biofilms by a wide range of problematic pathogens, including Streptococcus and Staphylococcus species, Pseudomonas aeruginosa, Escherichia coli, Proteus mirabilis, Enterobacter cloacae, Acinetobacter baumannii , and Klebsiella pneumonia ( Maddocks et al., 2012 , 2013 ; Lu et al., 2014 ; Majtan et al., 2014a ; Halstead et al., 2016 ) Importantly, honey can also disrupt established biofilms and kill resident cells, although a higher concentration is required than for planktonic cells ( Okhiria et al., 2009 ; Maddocks et al., 2013 ; Lu et al., 2014 ; Majtan et al., 2014a ). Very recently, manuka honey was tested on a multispecies biofilm containing Staphylococcus aureus, Streptococcus agalactiae, Pseudomonas aeruginosa , and Enterococcus faecalis and was found to reduce viability of all species but E. faecalis , which could not be eradicated ( Sojka et al., 2016 ). This has clear clinical implications for using honey on wounds containing biofilms, and understanding how the biofilm enables E. faecalis , to survive when it is normally killed by honey is an important and interesting area of future study. MGO appears to be mostly but not fully responsible for the inhibition of biofilms by manuka honey, again highlighting the importance of additional components that modulate activity ( Kilty et al., 2011 ; Lu et al., 2014 ).

The spectrum of activity of honey toward non-bacterial pathogens is yet to be well established. Recent studies examining the antiviral effect of manuka honey have suggested it has potential for treatment of varicella-zoster virus (the cause of chicken pox and shingles) ( Shahzad and Cohrs, 2012 ) and influenza ( Watanabe et al., 2014 ). Fungal pathogens of the skin, including Candida albicans and dermatophyte species are substantially less susceptible than bacteria to manuka honey, but are inhibited by honey with high levels of hydrogen peroxide production ( Brady et al., 1996 ; Irish et al., 2006 ). Manuka and non-manuka honey have been found to reduce the viability of spores of the microsporidian Nosema apis , an important pathogen of bees, but honey could not cure bee infection once this was underway ( Malone et al., 2001 ). There have been very few studies on the use of honey for protozoan or helminth parasites and these have not used honey with well-characterized activity, making it difficult to assess the significance of their findings ( Bassam et al., 1997 ; Nilforoushzadeh et al., 2007 ; Sajid and Azim, 2012 ).

Taking Honey Into Mainstream Medicine: Recent Experimental and Mechanistic Studies Shed Light on How Honey Works

Active manuka honey is widely available as a therapeutic agent and functional food, and most consumers accept it as a holistic, somewhat mysterious product. However, a lack of understanding on how honey kills bacteria and promotes healing limits its acceptance by mainstream medicine where it is still considered “alternative” or “complementary”. The vast majority of research studies on honey to date have been descriptive, however, recent studies are attempting to unravel how honey works and are using mechanistic approaches to determine how it acts at the cellular and the molecular level.

Ultrastructural Studies of Bacterial Cells and Communities Treated by Honey

Honey can profoundly alter the size and shape of bacterial cells, although the extent of this varies in different bacterial species. Using transmission electron microscopy (TEM), S. aureus cultures treated with manuka honey had more cells with completed septa compared to those treated with artificial honey, suggesting cells entered but failed to complete the division stage of the cell cycle, although externally these cells appeared normal by scanning electron microscopy (SEM) ( Henriques et al., 2010 ). More recently, phase-contrast imaging following treatment with a sub-lethal dose of manuka honey found cells of S. aureus and Bacillus subtilis were significantly smaller and were more likely to have condensed DNA than those growing without honey ( Lu et al., 2013 ). It is difficult to directly compare these studies as they used different amounts of honey and treatment times, but overall the results suggest an uncoupling of growth and cell division, which is often seen in response to nutritional and environmental stresses ( Silva-Rocha and de Lorenzo, 2010 ).

Honey treatment has been reported to cause cultures of the Gram negative species E. coli and P. aeruginosa to have both abnormally shorter and longer cells ( Lu et al., 2013 ). Interestingly, while P. aeruginosa appears to be less susceptible to inhibition by honey than other species, profound cellular changes were seen using TEM and SEM, including furrows and blebs (protrusions of cellular plasma membranes) on the cell surface and a substantial amount of extracellular debris indicative of cell lysis ( Henriques et al., 2011 ). This was verified in a subsequent study using BacLight live-dead fluorescence staining and confocal microscopy, although this also demonstrated that a relatively large number of live cells remained. These studies used 20% (w/v) honey, which was higher that the MBC for their strain of P. aeruginosa and substantial inhibition and death would be expected. However, atomic force microscopy (AFM) using sub-bactericidal levels still found substantial cell distortion and blebbing in cells treated with MIC (12%) and half MIC (6%) concentrations, along with substantial cell lysis ( Roberts et al., 2012 ). This apparent degeneration of the P. aeruginosa cell was supported by quantitative PCR analysis that showed a 10-fold down-regulation in honey-treated cells of oprF , which encodes an outer-membrane porin that is important for structural stability ( Jenkins et al., 2015a ).

‘Omics Analyses Assess the Whole-Cell Response to Inhibition by Honey

The ability to assess whole cell outputs has revolutionized the study of drug-pathogen interactions and has particular value for complex natural products like honey where effects on multiple processes are likely. Microarray and proteomic studies of bacteria exposed to honey suggested an induction of stress-related processes and suppression of protein synthesis ( Blair et al., 2009 ; Jenkins et al., 2011 ; Packer et al., 2012 ). While overall this is fairly typical of a response to inhibitory agents, honey produced a unique “signature” of differential expression that included many proteins with hypothetical or unknown functions, suggesting a novel mode of action. Specific genes or proteins found to be down-regulated in ‘omics analyses of S. aureus and E. coli O157/H7 have functions relating to virulence, quorum sensing and biofilm formation ( Lee et al., 2011 ; Jenkins et al., 2013 ), and in P. aeruginosa there was a down-regulation of proteins involved in flagellation ( Roberts et al., 2015 ). These phenotypes are critical for pathogens to establish and produce invasive infection and indicate that as well as inhibiting growth, honey can reduce the pathogenic potential of infecting bacteria.

Although still relatively limited in number and scope, the ‘omics analyses conducted to date suggest a complex cellular response to honey with considerable variation in different bacterial species. Advanced systems biology approaches that allow contextualization of the data, and validation studies using quantitative PCR and gene deletion strains, are now required to unravel this complexity, and these may reveal new approaches for drug therapies aimed at inhibiting bacterial growth ( Hudson et al., 2012 ).

Interactions Between Honey and Conventional Antibiotics

As well as use as a sole agent, there is scope for using honey to augment treatment with conventional antibiotics. This may have particular value when combined with systemic agents that can be delivered to a wound bed via blood circulation while honey is applied topically. Combined treatments can also lower the therapeutic dose of antimicrobial agents and prevent the development of resistance, and in some cases can result in drug synergy, where the combined activity is greater than the sum of the individual activities of each drug partner.

In vitro studies combining therapeutically approved manuka honey with antibiotic agents have found a synergistic effect with oxacillin, tetracycline, imipenem and mupirocin against the growth of an MRSA strain ( Jenkins and Cooper, 2012 ). Furthermore, the presence of a sub-inhibitory concentration of honey in combination with oxacillin restored the MRSA strain to oxacillin susceptibility. The authors found down-regulation of mecR1 , which encodes an MRSA-specific penicillin-binding protein (PBP2A) and suggested this as a mechanism of honey synergy. Strong synergistic activity between manuka honey and rifampicin against multiple S. aureus strains, including clinical isolates and MRSA strains, has also been found, and the presence of honey prevented the emergence of rifampicin resistance in vitro ( Müller et al., 2013 ). This is of clinical significance as rifampicin penetrates well into tissues and abscesses and is commonly used to treat superficial staphylococcal infections, but rapidly induces resistance and must therefore be used in combination with another agent. An additional finding from this study was that synergy was not due to MGO, as a synthetic honey spiked with MGO was not synergistic with rifampicin.

Understanding how honey affects the action of antimicrobials with well-characterized modes of action may also further our understanding of how honey affects bacterial pathogens. Liu et al. (2014) extended the analysis of synergy to include additional antibiotics and different S. aureus and MRSA strains. They suggested that an increased susceptibility to clindamycin and gentamicin might result from the combined effect of down-regulated protein synthesis by honey with inhibition of ribosomes by the antibiotics, while synergy with β-lactam antibiotics could be due to increased oxidative stress caused by both partners. As S. aureus and MRSA strains were equally susceptible to the oxacillin-honey combination it appeared that synergy was unlikely to be due to PBP2A down-regulation. In one clinical MRSA isolate, however, there was no increase in sensitivity to clindamycin or gentamicin when honey was present, which is notable as it is the first reported case of a difference in response to honey by MRSA versus S. aureus . Investigating this strain-specific difference using transcriptomic or proteomic analyses would be an interesting avenue for future research ( Liu et al., 2014 ).

Evidence of Efficacy From Animal Studies, Case Reports, and Clinical Trials

Companies that produce and market manuka honey promote high ethical standards and discourage the use of animal models to study infections and wound healing. Manuka honey has, however, been used to treat animals with surgical or accidental wounds, particularly horses, with positive outcomes ( Dart et al., 2015 ; Bischofberger et al., 2016 ). Case reports using honey for non-healing wounds and ulcers have noted significant improvement with resolution of infection where conventional antibiotics had failed ( Regulski, 2008 ; Smith et al., 2009 ). However, despite this and the evidence from numerous in vitro and in vivo models that honey kills problematic wound pathogens, there is a paucity of robust clinical data for manuka honey. There are various reasons for this, including technical difficulties in performing a double-blind placebo-controlled trial on a distinctive substance like honey, ethical considerations, lack of interest by clinical practitioners and cost-versus-benefit to honey companies, whose focus is on natural products and over-the-counter sales where manuka honey and associated dressings already command a premium price. These may change as antibiotic resistance erodes current treatment options and ongoing research highlighting the potential of honey brings it to the attention of medical practitioners.

Gaps and Emerging Opportunities in the Study of Honey

Great progress has been made recently in our understanding of therapeutic honey, yet its use in clinical medicine remains limited, even when conventional antibiotics are starting to fail. The complexity in honey, which is arguably its greatest strength in killing diverse pathogens and preventing resistance, complicates its study as many factors working together are likely to affect activity. We advocate further mechanistic studies using appropriately registered therapeutic manuka honey, in particular studies that use non-reductionist systems biology approaches, along with detailed chemical and microbiological analyses to elucidate how honey acts at the molecular, cellular and population level, how this can differ in different strains and species of microbial pathogens, and how the host cell responds ( Table ​ Table2 2 ). Information gained from these studies can then inform therapy and produce the clinical data required to take honey into mainstream medicine; no longer the alternative therapy used only when all else has failed.

Studies of manuka honey: findings, gaps, and future studies.

Author Contributions

This review was written by DC, SB, NNC, DB, and PB and was critically reviewed by RS and EH.

Conflict of Interest Statement

DC, PB, and EH report grant and non-financial support in the form of manuka honey from Comvita NZ Limited and Capilano Honey Limited; RS is employed by Comvita NZ Limited, which trades in medical grade manuka honey (Medihoney). The rest of the authors declare that the research was conducted in the absence of any commercial or financial relationship that could be construed as a potential conflict of interest.

Abbreviations

Funding. NNC receives salary support from the Rural Industries Research and Development Corporation – Honey Bee Program (Grant PRJ-009186).

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Get in Touch

Serving Honey Internationally

The Capilano Honey website was recently rebuilt by an external company to Klyp. However; the website had limited functionality and was created solely for English speakers. The existing branding and packaging only aligned with Australian standards. Capilano realised they actually required a website that could support their expansion into international markets. Klyp ensured the website was capable of identifying where users were located geographically. The website then served visitors with information from their native language; in addition to imagery that aligned with the applicable country’s advertising standards.

The Challenge

Multilingual & Multi-Regional Functionality

Implementing multilingual and multi-regional functionality required complete redevelopment of some website components; which were originally designed before the global growth plan. This redevelopment will ensure that if Capilano Honey wishes to incorporate the viewing preferences of a new region in future, their website has the capacity to do so. As a result, this process will now be both cost and time efficient as well as easy to implement.

Structural Flexibility

The upgraded website has the capacity to keep repopulating to cater to new languages and regions on demand. Previously, all the website content elements were managed from fixed templates within the backend. This meant that copyright statements or titles needed to be updated. Klyp made sure this content could be easily customised with the use of input fields which can automatically update static content. As a result, the upgraded Capilano Honey website has the structural flexibility to make changes to content quickly.

Geographical Zones

The updated Capilano Honey website identifies an individual’s geographic location based on their IP address. This feature automatically directs each user to a website with the correct language setting for their region. This prevents international users from having to take the additional step of selecting their geographical zone after landing on the webpage. Instead, users are shown the correct regional content; including images which are appropriate to their country of residence guidelines.

This improved user experience led to a decreased bounce rate, as users are served exactly what they searched for, in the first instance and will in turn increase the time they spend exploring the website.

The Outcome

Capilano Honey now has the ability to quickly expand their online presence around the world, with the support of multilingual and multi-regional functionality. The enhanced website can now be used for the international expansion of Capilano Honey on a digital level, thanks to an improved user experience on the company website   - check it out!

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• Sep 18, 2018

Crisis Case Study: Fake honey, when you shouldn't go on the attack

By Georgia Comensoli, Michelle Wang and James Fitzpatrick

Recently, some brands were found to have tampered with (or “adulterate”) their honey, mixing in ingredients other than nectar from bees. This scandal has dominated the news headlines in the first week of September because it involves more than one brand who all fall under the same product category.

The issue has become so topical that the ACCC has launched an official investigation. It’s also a perfect example for when you should or shouldn’t go on the attack in a crisis.

So where exactly did our honey manufacturers get so sticky?

What happened

An international lab specialising in testing food and their ingredients has found that Australian honey brands were faking their ingredients.

The initial report was created by journalists from both the ABC and Fairfax Media, airing on 3 September 2018 during ABC’s 7:30. The report claims that adulterated honey from China is making its way into Australian products, allowing costs to be cut down and larger profits to be made.

Law Firm King & Wood Mallesons bought and sent 28 jars of honey to be tested in a lab in Germany. The test is called NMR testing, and uses nuclear magnetic resonance to detect impurities in the product.

According to the results, 12 of the 28 jars of honey from Australian supermarket stores failed the test, including several jars of honey from Capilano’s Allowrie-branded Mixed Blossom Honey, IGA’s Black & Gold label, and ALDI Bramwell’s mixed blossom brands. Most of the honeys that are said to be adulterated have a blend of Chinese honey, while many Australian-sourced honeys were found to be unaltered.

When tested with the official Australian test named C4, however, all 28 jars of honey passed.

The Reaction

How does a brand react when the crisis encompasses more than just themselves?

How does an issue like this impact brands that haven't tampered their honey?

The news of fake honey will damage the entire honey industry with consumers losing trust. This distrust has the potential to spread to other honey brands by generalisation, especially when this trust encompasses a range of different brands in the industry. The consumer may take the recent news into consideration when they are next shopping for groceries and decide to abstain from purchasing a jar.

Since the report, ALDI has published a statement announcing further investigations into the case and a temporary withdrawal of the affected products, while Coles has long removed the adulterated Capilano products after a product range review in July. IGA has said that their products meet the requirements of the Australian and New Zealand Food Standards Code.

Capilano’s initial response was a statement denying any issues with the Allowrie product, criticising the testing process as unreliable. They have also stated that the testing process is not used by Australian and international regulators.

Since then, however, Capilano has completely changed their stance . They now have released a statement detailing that Capilano honey is “free from other substances” and that they will help fund an Australian-based NMR facility for honey testing.

Beechworth Honey, Australia’s second-largest honey operator, and the Australian Bee Industry Council (AHBIC) have endorsed the NMR test.

The Verdict

The affected brands have each published statements in regards to the adulterated honey report. Coles seems to have sidestepped the issue neatly with the help of a timely product review, and ALDI’s statement is sure to retain their customers’ goodwill.

While Capilano eventually changed their stance on the NMR test and the fake honey allegation, there is undoubtedly damage done to their brand image.

If your crisis response strategy is to go on the attack and dispel misinformation like Capilano first attempted to do (and is sometimes an appropriate response), you have to be 100% sure you have all the facts in hand. Having to backtrack in subsequent statements is far more damaging than taking responsibility in the first instance.

#crisis #casestudy #honey

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Capilano Honey

McCarthy, Breda (2015) Capilano Honey. SAGE Business Cases.

Capilano is the market leader in Australia's honey processing sector. The company exports to 52 countries, accounting for over 90 per cent of all retail-packed honey exported from Australia, making Capilano one of the most widely distributed Australian food brands internationally. Capilano differentiates itself on quality - the unique and premium taste of Australian honey. However, it has faced many challenges on the road to market leadership. As the product is in the mature stage of its product life cycle, targeting new segments, developing new uses and new forms ofpackaging, is essential. In recent times, health-conscious consumers and watchdoggroups have called attention to sugar's negative health consequences, linking high levels of consumption to diabetes, obesity, heart disease and high blood pressure.Capilano has, to date, escaped the backlash against refined sugar and has managed to successfully differentiate its product from other sugar substitutes. Like all food companies, it has to be very careful that it doesn't contravene Federal or state advertising laws.

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Australian firm launches ‘world’s first clinically tested’ prebiotic honey, targets China market

09-Oct-2016 - Last updated on 10-Oct-2016 at 06:16 GMT

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Beeotic, listed with the Therapeutic Goods Administration as a therapeutic good, is now on sale in supermarkets and pharmacies in Australia, with the company also targeting sales in China.

The Queensland firm says the product is the result of extensive research and a world-first clinical study conducted through the University of New South Wales (UNSW) to identify the prebiotic health potential of select Australian honeys.

Microbiology and Immunology specialist at UNSW Professor Patricia Conway said:  “Honey has been used to help normalise digestive balance for many years. The focus of the clinical study was to scientifically validate the specifications of a prebiotic honey to deliver consumers certainty around its potential health and wellness benefits. ​

“The results of the clinical study found that at a dose of 14mL, approximately one tablespoon per day, certain honeys significantly raised the levels of good bacteria and suppressed potentially harmful bacteria in the digestive tract. Furthermore, levels of good bacteria decreased once the participants stopped taking the honey for a period of time.” ​

She added the discovery of eight key oligosaccharides believed to be contributing to the prebiotic activity of honey was identified, allowing Capilano to test and detect the honeys which contain the beneficial prebiotic oligosaccharides.

“Each batch of Beeotic honey is independently tested using our pioneering technology which we are in the process of patenting,” Dr McKee said. ​

“The tests look for particular sugar profiles in order to identify which honeys contain the required prebiotic components. Nothing is added, nothing is taken away, Beeotic is just 100 per cent pure Australian honey. ​

“Best of all this premium quality prebiotic honey is made right here in Australia, hand collected by our network of Australian beekeepers.” ​

China exports

The product was launched at an event attended by Queensland Premier Annastacia Palaszczuk, who welcomed the firm’s focus on exports to China.

“Capilano’s timing in targeting the Asian market is perfect, this economy is growing at a phenomenal rate and by the year 2030, it’s predicted Asia will account for two-thirds of the world’s middle class,” ​ she said.

“Chinese consumers love natural products and already embrace the health benefits of honey, so Beeotic has great potential to be a great boost for Queensland exports.” ​ 

Meanwhile, Capilano is currently taking legal action in the wake of unfounded allegations that it is selling ‘toxic and poisonous honey’ ​ to consumers.

“We can confirm that these claims are completely untrue and without foundation ​,” the company said on Friday.

“Much of the information being circulated relates to the ongoing and unfounded claims made by Mr Simon Mulvany of ‘Save the Bees Australia’ and Capilano Honey’s resulting legal action against him. ​

“This action was an absolute last resort for Capilano Honey after numerous attempts to engage and inform Mr Mulvany about the inaccuracies of his claims. Capilano Honey has filed a statement of claim with the Supreme Court of New South Wales seeking an order that Mr Mulvany be restrained from publishing false and misleading allegations.” ​

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Texas Business School approach of case study analysis – Conclusion, Reasons, Evidences - provides a framework to analyze every HBR case study. It requires conducting robust external environmental analysis to decipher evidences for the reasons presented in the Capilano Honey Ltd. The external environment analysis of Capilano Honey Ltd will ensure that we are keeping a tab on the macro-environment factors that are directly and indirectly impacting the business of the firm.

What is PESTEL Analysis? Briefly Explained

PESTEL stands for political, economic, social, technological, environmental and legal factors that impact the external environment of firm in Capilano Honey Ltd case study. PESTEL analysis of " Capilano Honey Ltd" can help us understand why the organization is performing badly, what are the factors in the external environment that are impacting the performance of the organization, and how the organization can either manage or mitigate the impact of these external factors.

How to do PESTEL / PEST / STEP Analysis? What are the components of PESTEL Analysis?

As mentioned above PESTEL Analysis has six elements – political, economic, social, technological, environmental, and legal. All the six elements are explained in context with Capilano Honey Ltd macro-environment and how it impacts the businesses of the firm.

How to do PESTEL Analysis for Capilano Honey Ltd

To do comprehensive PESTEL analysis of case study – Capilano Honey Ltd , we have researched numerous components under the six factors of PESTEL analysis.

Political Factors that Impact Capilano Honey Ltd

Political factors impact seven key decision making areas – economic environment, socio-cultural environment, rate of innovation & investment in research & development, environmental laws, legal requirements, and acceptance of new technologies.

Government policies have significant impact on the business environment of any country. The firm in “ Capilano Honey Ltd ” needs to navigate these policy decisions to create either an edge for itself or reduce the negative impact of the policy as far as possible.

Data safety laws – The countries in which Capilano Honey Ltd is operating, firms are required to store customer data within the premises of the country. Capilano Honey Ltd needs to restructure its IT policies to accommodate these changes. In the EU countries, firms are required to make special provision for privacy issues and other laws.

Competition Regulations – Numerous countries have strong competition laws both regarding the monopoly conditions and day to day fair business practices. Capilano Honey Ltd has numerous instances where the competition regulations aspects can be scrutinized.

Import restrictions on products – Before entering the new market, Capilano Honey Ltd in case study Capilano Honey Ltd" should look into the import restrictions that may be present in the prospective market.

Export restrictions on products – Apart from direct product export restrictions in field of technology and agriculture, a number of countries also have capital controls. Capilano Honey Ltd in case study “ Capilano Honey Ltd ” should look into these export restrictions policies.

Foreign Direct Investment Policies – Government policies favors local companies over international policies, Capilano Honey Ltd in case study “ Capilano Honey Ltd ” should understand in minute details regarding the Foreign Direct Investment policies of the prospective market.

Corporate Taxes – The rate of taxes is often used by governments to lure foreign direct investments or increase domestic investment in a certain sector. Corporate taxation can be divided into two categories – taxes on profits and taxes on operations. Taxes on profits number is important for companies that already have a sustainable business model, while taxes on operations is far more significant for companies that are looking to set up new plants or operations.

Tariffs – Chekout how much tariffs the firm needs to pay in the “ Capilano Honey Ltd ” case study. The level of tariffs will determine the viability of the business model that the firm is contemplating. If the tariffs are high then it will be extremely difficult to compete with the local competitors. But if the tariffs are between 5-10% then Capilano Honey Ltd can compete against other competitors.

Research and Development Subsidies and Policies – Governments often provide tax breaks and other incentives for companies to innovate in various sectors of priority. Managers at Capilano Honey Ltd case study have to assess whether their business can benefit from such government assistance and subsidies.

Consumer protection – Different countries have different consumer protection laws. Managers need to clarify not only the consumer protection laws in advance but also legal implications if the firm fails to meet any of them.

Political System and Its Implications – Different political systems have different approach to free market and entrepreneurship. Managers need to assess these factors even before entering the market.

Freedom of Press is critical for fair trade and transparency. Countries where freedom of press is not prevalent there are high chances of both political and commercial corruption.

Corruption level – Capilano Honey Ltd needs to assess the level of corruptions both at the official level and at the market level, even before entering a new market. To tackle the menace of corruption – a firm should have a clear SOP that provides managers at each level what to do when they encounter instances of either systematic corruption or bureaucrats looking to take bribes from the firm.

Independence of judiciary – It is critical for fair business practices. If a country doesn’t have independent judiciary then there is no point entry into such a country for business.

Government attitude towards trade unions – Different political systems and government have different attitude towards trade unions and collective bargaining. The firm needs to assess – its comfort dealing with the unions and regulations regarding unions in a given market or industry. If both are on the same page then it makes sense to enter, otherwise it doesn’t.

Economic Factors that Impact Capilano Honey Ltd

Social factors that impact capilano honey ltd, technological factors that impact capilano honey ltd, environmental factors that impact capilano honey ltd, legal factors that impact capilano honey ltd, step 3 – industry specific analysis, what is porter five forces analysis, step 4 – swot analysis / internal environment analysis, step 5 – porter value chain / vrio / vrin analysis, step 6 – evaluating alternatives & recommendations, step 7 – basis for recommendations, references :: capilano honey ltd case study solution.

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Capilano Honey Limited PESTEL Analysis

Posted by Zander Henry on Aug-22-2018

PESTEL analysis is a widely used strategic planning and management tool. It is an acronym for political, economic, social, technological, environmental and legal factors that shape the macro business environment. Capilano Honey Limited. operates in a complex and dynamic environment characterized by regulatory changes, growing environmental activism, collective social trends, technological changes and evolving legal system.

2 Application of PESTEL to Capilano Honey Limited.

The application of PESTEL analysis can help Capilano Honey Limited. identify the major external environmental forces that shape the strategy and competitive landscape and support its strategic decision making process. As Capilano Honey Limited. looks to expand and leverage its competencies and core capabilities, conducting the PESTEL analysis is imperative for developing effective strategies and achieving long-term growth objectives.

2.1 Political factors

2.1.1 importance of political factors in the pestel framework.

Within PESTEL analysis, political factors exert a strong influence on the long-term sustainability and profitability of Capilano Honey Limited. The presence at international stage increases the company’s sensitivity to changes in political environments of different countries. In a political context, the key to success in a dynamic international business environment is to diversify the systematic risks. The political environment of a country comprises multifaceted factors. Capilano Honey Limited. needs to consider the following political factors during the strategic planning process:

2.1.2 Political factors that influence Capilano Honey Limited.

2.1.2.1 political stability.

High political stability provides a stable and friendly business environment with predictable market growth trends. However, when there is political chaos, it deters the investors and harms the stakeholders' trust in economic and consequent organizational performance. Currently, Capilano Honey Limited. is present in different countries, each having own political tensions. Growing tensions and instabilities in the global political environment can affect the Gold industry growth and limit the growth opportunities available to Capilano Honey Limited.

2.1.2.2 Changing policies

Frequent changes in government policies harm business performance by increasing environmental uncertainty. It is important for Capilano Honey Limited. to study the current trends in the country's political scenario as changes in government may alter the government's priorities towards the development of different industries.

2.1.2.3 Protests/pressure groups and governance system

Capilano Honey Limited. should carefully analyze the protests by pressure groups, social/environment activists and worker unions as such protests play an important role in the policy making process. Close collaboration with such groups may enhance the Capilano Honey Limited.’s ability to collaborate with community and achieve long-term corporate goals. Moreover, a well-developed governance system with a democratic political environment makes the business environment more comfortable for international business organizations like Capilano Honey Limited.

2.1.2.4 Bureaucracy and corruption

Bureaucracy and corruption negatively influence the business environment. Operating in countries with high corruption level and weak law enforcement makes the business environment increasingly unpredictable for Capilano Honey Limited. due to jeopardized public trust on business organizations and overall political and economic structure. The corruption can influence various business operations, ranging from licensing, contracting, fraudulent deals to frequent lawsuits. If Capilano Honey Limited. decides to enter in markets with the corrupt economic, political system, it will threaten the organization's sustainable development by destabilizing the society, harming justice system and endangering the rule of law.

2.1.2.5 Taxation, trade restrictions and intellectual property protection

Entering in countries with high taxation level will directly influence the profitability of Capilano Honey Limited. High taxation affects international trade and prevents exports. Capilano Honey Limited. can enter in low taxation markets and benefit from high profits that can be invested in research and development activities. The organization may also study the industry specific taxation policies to understand the host government's priorities and interest in developing industries. Similarly, high trade restrictions can make the business environment more complex by affecting the exports and harming relationships with foreign trade partners. Moreover, if the government of the country under consideration is not serious about protecting the intellectual property rights of business organizations, it will deter the entrepreneurs from investing in organizations due to high risk of ideas being stolen. Hence, Capilano Honey Limited. should study how intellectual property rights are protected in the host country and make the business strategies accordingly.

2.2 Economic factors

2.2.1 importance of economic factors in the pestel framework.

It is important for Capilano Honey Limited. to understand economic factors such as foreign exchange/interest rate, labor market conditions, inflation and saving rates etc. as they determine the overall economic environment of the country. A detailed understanding of the economic environment can help Capilano Honey Limited. estimate the growth trajectory of industry and organization. Following economic factors need to be considered by Capilano Honey Limited. to make informed decisions:

2.2.2 Economic factors that influence Capilano Honey Limited.

2.2.2.1 economic/business cycle stage.

The economic development of a country directly influences organizational performance. Growing economies offer wide-ranging growth opportunities to the Capilano Honey Limited. Similarly, it is important to understand the industry lifecycle stage. Entering in mature industries can be more challenging due to market saturation than industries at the growth stage. Moreover, the business performance of Capilano Honey Limited. is also influenced by the extent to which the host country government has spent on core infrastructure development. A well-developed infrastructure facilitates the business environment and increases the growth potential of the gold industry in the respective country.

2.2.2.2 Inflation/employment/interest/exchange rates

The GDP growth rate will determine the Capilano Honey Limited.’s ability to pursue its long-term growth strategies. High GDP also signals the consumers’ ability to spend more on offered products. High unemployment signals the availability of surplus labor at comparatively lower wages. Operating in such a market can lower the production cost of Capilano Honey Limited. The organization should also carefully consider the interest rate and its influence on borrowing ability and attitude towards investment. The high interest rate will encourage the attitude towards investment and increase growth opportunities for Capilano Honey Limited. Finally, the exchange rate fluctuation can also influence the profitability and international trade. The high fluctuation on local currency can be a cause of serious concern for Capilano Honey Limited.

2.2.2.3 Labor market conditions

The demand and supply of labor determine the wage rates and supply of skilled workforce. Capilano Honey Limited. must study and predict the labor market conditions to understand how it can attract talented workers and leverage their skills to improve business performance. When labor markets are flexible, Capilano Honey Limited. can take advantage of higher labor productivity. Whereas, operating in rigid labor markets may cause labor wage and other issues raised by powerful labor unions. Capilano Honey Limited. should also carefully analyze the availability of skilled human capital as a shortage of skilled labor can affect business efficiency and make talent attraction and retention more challenging.

2.2.2.4 Financial markets efficiency

The global expansion strategies of the Capilano Honey Limited. are influenced by the financial market efficiency as operating in highly efficient financial markets leads towards improved liquidity position and strengthened ability to enter new markets. The health and efficiency of financial markets will determine Capilano Honey Limited.’s ability to raise the capital at fair prices.

2.2.2.5 Economic structure

The business practices of the Capilano Honey Limited. are influenced by the prevailing economic structure. The economic and regulatory environment in a monopolistic or oligopolistic structure will be different from the monopolistic competition and perfect competition.

2.3 Social factors

2.3.1 importance of social factors in the pestel framework.

Organizational culture derives strong influence from the societal norms, values and trends. Understanding the demographic trends, power structures, consumers’ spending patterns and shared beliefs can help Capilano Honey Limited. design effective marketing messages and fulfil corporate objectives through informed PESTEL analysis. The marketing department of Capilano Honey Limited. can use the information retrieved from social, environmental analysis to target the consumer groups and increase the appeal of offered products to potential buyers. Capilano Honey Limited. must consider the following social factors to conduct macro-environmental analysis:

2.3.2 Social factors that influence Capilano Honey Limited.

2.3.2.1 demographic trends.

Changes in demographic patterns like aging population, migration trends and socio-economic variables have paramount importance for international business organizations like Capilano Honey Limited. Studying the demographic characteristics can help Capilano Honey Limited. in choosing the right market segment/segments with high growth potential. The business and marketing strategies are also influenced by migration. It is important for Capilano Honey Limited. to understand the people’s general attitude towards migration as it can influence firms’ ability to bring international managers to host country.

2.3.2.2 Equality and power distance

The power distance within any society shows the acceptance of hierarchy and income inequality. Capilano Honey Limited. must adjust its business management practices while entering in markets with high or low power distance. The growing inequality in many countries is altering the power structure, which has serious implications for international business organizations like Capilano Honey Limited.

2.3.2.3 Gender Roles

Capilano Honey Limited. need to study the traditionally assigned gender roles to align its marketing and communication practices accordingly. Marketing and human resource strategies in a traditional, patriarchal society with clearly distinguished gender roles will be different from societies with low gender stereotypes.

2.3.2.4 Societal norms and class distribution

Culture is considered an important variable by international marketing managers. Each society has distinctive norms and values that play an important role in shaping consumer behavior. Capilano Honey Limited. should develop local teams and develop local partnerships for understanding the societal attitudes and norms to tailor marketing strategies according to unique cultural context. The observation of social class stratification is also important for Capilano Honey Limited. Offering luxury products at premium prices to a market where the high-end market is considerably small in number will require Capilano Honey Limited. to adopt the niche marketing strategies. Similarly, market segmentation based on social class may be ineffective where social class stratification is low.

2.3.2.5 Online shopping

The advent of social media and e-commerce has encouraged online shopping behavior among customers. Capilano Honey Limited. needs to understand the online shopping behavior by considering the generational differences as younger consumers are more inclined to shop online than older customers. The growing use of mobile phones and social networking sites must be considered when developing marketing and communication strategies.

2.3.2.6 Spending patterns and behavior

The consumers’ spending patterns are influenced by their purchasing power of money. Studying and forecasting the consumers’ purchasing power based on relevant economic indicators is important to analyze the customers’ interests and spending patterns. In some societies, consuming the offered product is considered a status symbol, while, some people use the same products for functional aspects. Capilano Honey Limited. should invest time on understanding the consumption motivations and social trends that define the consumption behavior. Capilano Honey Limited. should also attempt to understand the degree of consumer ethnocentrism and consider the country of origin effect to determine local consumers’ evaluation of foreign products. Lastly, Capilano Honey Limited. should study the consumers’ leisure interests and should focus more on enhancing the customer experience if customers prefer experiential products over traditional product offerings.

2.4 Technological factors

2.4.1 importance of technological factors in the pestel framework.

‘Technology' is the fourth factor of PESTEL analysis. The rapid technological advancement and technological diffusion across the globe have increased the importance of understanding technological factors during the strategic decision making process. A detailed analysis of the technological environment can help Capilano Honey Limited. capture the technological trends to achieve certain business advantages, such as- increasing profitability, boosting innovation process and enhancing the operational efficiency. Following technological factors can influence the business performance of Capilano Honey Limited.:

2.4.2 Technological factors that influence Capilano Honey Limited.

2.4.2.1 social media marketing.

The development of information and communication technologies has led towards the adoption of innovative marketing techniques to enhance collaboration with customers. Use of social media has become common in a modern business environment. Capilano Honey Limited. can leverage the opportunities offered by social media marketing to improve business performance. Technological trends can be used to start the creative social media campaigns for developing online brand communities.

2.4.2.2 Technological innovations and development level

Capilano Honey Limited. should carefully consider the on-going technological innovations to stay ahead of the competition. A close eye should be kept on analyzing the 5G and determining its potential to deliver positive business outcomes through enhanced user experience, increased speed and expanded access. Technological innovations like this can bring major transformations in the industry and reset the success rules for market players. Moreover, considering the development and maturity level of technology in the respective market is also important. Entering in markets where technological advancement has not reached the maturity means Capilano Honey Limited. can increase the market share by focusing on emerging technological innovations.

2.4.2.3 Research and development on technology and impact on cost structure/value chain

Capilano Honey Limited. needs to consider the investments made by competitors on a micro and macro level to understand how new technologies influence the firm’s value chain and prevailing cost structure. Research and development activities are highly important in an environment characterized by creative disruption. In such an environment, Capilano Honey Limited. should invest in disruptive technologies to maximize the profits and re-invest the profits for future disruptive technologies.

2.4.2.4 Shortened product life cycles

The adoption of new technologies has shortened the lifecycle of new product development. Today, new products are developed quickly, and supply chain partners have also gained more power. It pressurizes the Capilano Honey Limited. to develop new products quickly, increase product range diversity, integrate flexibility into the value chain and develop healthy business relationships with value chain partners.

2.5 Environmental factors

2.5.1 importance of environmental factors in the pestel framework.

The growing environmental consciousness and changing climatic conditions have made ‘environmental analysis’ an important part of the PESTEL analysis. The environmental standards, laws and regulations vary across different markets. The international presence of Capilano Honey Limited. require the organization to consider these differences to avoid undesired circumstances carefully. Detailed environmental analysis is imperative before deciding to enter a new market or start a new product line. Some examples of environmental factors that Capilano Honey Limited. need to consider are given below.

2.5.2 Environmental factors that influence Capilano Honey Limited.

2.5.2.1 recycling and waste management.

The growing environmental pollution coupled with technological advancement has compelled business organizations to adopt innovative recycling and waste management practices. In some countries, recycling has almost become a business norm. Moreover, adopting efficient waste management practices in organizational units that are located in or near urban areas is highly crucial for Capilano Honey Limited. Many countries have placed strict norms to protect their urban areas through effective waste management.

2.5.2.2 Renewable technologies

Some countries offer subsidies for encouraging investment in renewable technologies. Capilano Honey Limited. can benefit from it and invest in renewable technologies to ensure long-term sustainability. This investment will also increase stakeholder satisfaction and expand the customer base due to enhanced brand image.

2.5.2.3 Weather and climatic conditions

Changes in weather and climatic conditions can influence business efficiency. For instance, extreme weather conditions can increase the cost of operations and compel the Capilano Honey Limited. to make the value chain more flexible. Such changes can also influence the consumers' spending patterns, causing the organization to revise its product and marketing strategies.

2.5.2.4 Attitude towards eco-friendly products

There is a growing trend towards the use of green/eco-friendly products. Capilano Honey Limited. can take it as an opportunity and adopt green business practices to win the trust of stakeholders. Regulatory bodies’ emphasis on ensuring compliance with environmental norms is altering the product innovation priorities. It requires Capilano Honey Limited. to prioritize and focus on marketing the eco-friendly nature of their products over customary value propositions.

2.5.2.5 Environmental regulations to avoid resource depletion

Excessive resource depletion by Capilano Honey Limited. can draw the negative response from media, environment protection groups, customers and the general public. Capilano Honey Limited. must study the specific environmental regulations of the country under consideration to understand which resources (like water, electricity etc.) are considered rare or which species are endangered whose excessive consumption can cause trouble for the organization.

2.6 Legal factors

2.6.1 importance of legal factors in the pestel framework.

“Legal” is the sixth factor of PESTEL analysis. Capilano Honey Limited. cannot enter a new market without studying in detail the legal environment and regulatory structure of the new consumer market. A careful evaluation of legal aspects is required to avoid getting into some serious trouble. Ignorance in this regard can cause undesired circumstances for Capilano Honey Limited., such as- hurting competitive advantage as a result of intellectual property rights violation and harmed organizational image due to violation of consumer/employee/environment protection standards. Capilano Honey Limited. should consider the following legal factors when exploring a new market.

2.6.2 Legal factors that influence Capilano Honey Limited.

2.6.2.1 employee protection laws (discrimination and health and safety).

Capilano Honey Limited. must follow the employee/labor health and safety laws as some countries have strict regulations to ensure labor safety. Providing a secure work environment for the workforce is the ethical and moral obligation of Capilano Honey Limited. Similarly, anti-discrimination laws (like equal employment opportunity) also need to be carefully studied when developing human resource practices as discriminatory suits against employer harm the organizational image and affect organizations’ ability to attract and retain the talent.

2.6.2.2 Consumer protection laws

The data protection has become an important issue due to consumers’ privacy and security concerns. Capilano Honey Limited. need to study data protection regulations to protect the customer data. Moreover, there are laws to set the maximum price, ensure a certain quality standard and protect consumers from fraudulent marketing claims. Capilano Honey Limited. must consider these factors to ensure compliance with consumer protection laws.

2.6.2.3 Intellectual property laws

Intellectual property regulations are designed to protect the companies' patents and valuable ideas. Inability to protect intellectual property rights can result in losing competitive advantage, which may weaken the positioning of Capilano Honey Limited. against other market players.

3 Concluding statement

To conclude, the PESTEL model is an important business tool that involves a detailed analysis of macro-environmental factors that shape the business environment. Ranging from political factors to environmental factors, each factor comprises various variables that influence the strategic decision making process of business organizations like Capilano Honey Limited.

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