Brewing business with Doug Hastie, Founder of Chanui

Pictured above: Doug Hastie alongside tea pickers on a trip to Sri Lanka.

For Christchurch businessman Doug Hastie, the problem was simple: New Zealanders didn’t have access to good-quality tea. After tasting premium teas overseas, he realised how much New Zealand supermarket shelves were lacking. Determined to change that, he founded Chanui in 2007. In an interview with NZBusiness, Doug shares his journey developing one of New Zealand’s favourite tea brands, the best way to drink tea, and that iconic TV commercial.

Doug Hastie’s journey from idea to in-store staple is infused with his personal passion for quality tea. Living in New York, Doug became familiar with the wide availability of high-quality tea, something he was not accustomed to in New Zealand, where he felt tea quality lagged behind. This gap in the market for premium tea sparked his entrepreneurial spirit. Doug believed there had to be others who, like him, appreciated superior tea and wanted more than the basic supermarket options.

Returning to New Zealand, Doug set out to bring premium tea to the masses, but his approach was anything but conventional. His journey began with a hands-on exploration of tea-producing countries like Sri Lanka, Japan, and India, where he sourced tea directly from local suppliers to ensure top-tier quality. Sri Lanka, in particular, remains the primary source of tea for Chanui.

“Chanui is all about good quality at a reasonable price,” Doug explains, highlighting his focus on affordability and high standards.

Unlike many entrepreneurs, Doug chose to bootstrap his business, foregoing outside funding. While this decision added financial pressure, it also allowed him to maintain complete control and remain grounded in the essentials.

Every decision, from product sourcing to customer experience, was driven by his commitment to quality. “I never got outside funding, so it made things harder, but it forced me to do things properly,” Doug says.

Gumboot tea

In the decade-plus that Doug has been running Chanui, he has witnessed the evolution of tea consumption in New Zealand.

Millennials and Gen Zers, influenced by health and wellness trends, have begun opting for more diverse blends like green teas, herbal infusions, and exotic varieties. “When we started, we hardly saw any green tea. People said they drank it, but no one bought it. Now, jasmine green tea is very popular.”

Despite this growing diversity in the tea market, Chanui’s best-selling tea remains English Breakfast, a reflection of New Zealand’s ingrained tea traditions. Kiwi tea culture is defined by the casual consumption of “gumboot tea”, a strong black tea served with milk. Unlike the formal tea ceremonies seen in Middle Eastern or Asian cultures, tea in New Zealand is a simple, everyday ritual.

Whether at a kitchen table, during a break on a worksite, or in a lunchroom, gumboot tea is a part of Kiwi life.

“Gumboot tea is more a reflection of our culture. It’s about function over quality, and it represents that we’re not very ostentatious,” Doug says.

Doug himself enjoys a classic cup of gumboot tea during the day, preferring peppermint or Rooibos in the evening.

Although formal tea rituals are non-existent in New Zealand, Doug says that everyone has their own way of enjoying tea and that’s the beauty of it. “There’s always something about making tea, sitting down, and sharing stories from the day. Everyone has their own tea ritual, and I think it’s so cool,” he says.

His love for tea has extended beyond just selling a product; it has become part of his mission to educate consumers.

Many people, for instance, aren’t aware that black and green tea come from the same plant, with the difference lying in how the leaves are processed. Doug has spent years raising awareness and helping Kiwis understand the nuances of tea, which in turn helps them appreciate a good cup.

A slow brew

Doug’s journey with Chanui has not been without its challenges.

The early days were marked by significant financial struggles. Without outside investment, Doug relied on his own savings and credit to keep the business afloat, often using credit cards to cover essential costs.

“I was on the verge of personal bankruptcy for a number of years,” Doug says, revealing just how close he came to losing everything.

But it was his perseverance that kept him going.

One of the pivotal moments in Chanui’s growth came when Doug made a major product decision. Initially, Chanui focused on selling leaf tea, but a decision to switch to tea bags transformed the company’s trajectory. “When we moved from leaf tea to tea bags, it made all the difference.”

Now, over 90 percent of Chanui’s sales come from tea bags, which have become the brand’s cornerstone product.

Marketing was another crucial element in Chanui’s growth.

Despite having limited funds, Doug took a major gamble by investing in TV advertising ten years ago.

“We really didn’t have enough money to pay for it, but we just thought, let’s do it and we’ll find a way,” he says.

The TV commercials weren’t flashy or overproduced – they were straightforward, real, and relatable, featuring Doug himself as a tradie or barman.

The tagline, “Bloody good tea,” resonated with everyday New Zealanders and became iconic.

“You’ve got to stand out: If you do the same as everyone else, you’re just the same as everyone else,” Doug says.

His authentic, no-nonsense marketing struck a chord with consumers, leading to an overwhelming response.

Before the ads aired, Doug had trouble convincing supermarkets to carry his stock. Afterward, demand surged, and supermarkets began to stock Chanui tea.

“It was unbelievable. It was a situation of making sure we could supply enough as supermarkets were forced to take it on.”

Beyond just tea

While Chanui was Doug’s first business, it it’s far from his last.

He has since diversified into other ventures, to “try something new”, including a scientific instruments company and, most recently, the acquisition of accounting businesses across New Zealand.

Doug’s focus now includes providing not only accounting and financial advice but also mentorship to other entrepreneurs.

“Running your own business can be a bit lonely, and there’s a lot to take into consideration. Sometimes just having someone to talk to and providing, obviously, accounting and financial advice with mentorship as well,” Doug says.

Despite his involvement in new ventures, Chanui remains close to his heart.

“Chanui isn’t just a business to me – it’s because I love tea, and I wanted to bring good tea to New Zealand,” he says. His passion for tea, and his commitment to quality, continue to drive the company’s growth.

Looking ahead, he remains focused on maintaining Chanui’s high standards while continuing to innovate.

Doug’s entrepreneurial philosophy revolves around hard work and persistence.

His advice to newbies in business is to act on their ideas and “just do it”. He says on bad days, pay attention to small blessings, like seeing someone enjoy your product. It makes a huge difference and reminds you to keep going.”

“Whenever I see someone drinking our tea and they don’t know I am with Chanui, and they’re not talking to you, they’re just talking to someone else, like: ‘man, it’s the nicest cup of tea I’ve ever had.’ In the early days when it was pretty shit, it’s those types of comments that really kept me going,” he says.