Protecting The Hawaii Brand

Can someone steal Hawaii’s identity and profit from it? It’s already happening, according to Matthew K. Loke, administrator of the state’s agricultural development division.

With the vigilance of a caped crusader, Loke spots products on the market that are posing as Hawaii-made goods. There’s bottled water from Las Vegas called Hawaiian Tropic. There are bread-sticks from Japan called Hawaii Pretz. There’s Hawaii variety papaya grown in the Philippines and Thailand.

Seeing a Hawaii brand, consumers are duped into believing these are genuine Island-made items. Sort of like having designer brand knock-offs on the black market. In free enterprise, there’s not much one can do except to criticize the practice and appeal to consumer discrimination to know the difference. Yet, in the face of trade competition, it’s tough to sit back and let it go unchallenged.

So what do you do with identity theft in commerce? What if someone is cockroaching our brand?

Enter Loke and Hawaii’s agricultural industry. Following a legislative mandate passed in 2002, the state Department of Agriculture recently launched a program to brand genuine Hawaii-grown and Hawaii-made products with a Seal of Quality. It’s like the Good Housekeeping seal of approval. Only products meeting high standards and strict criteria can carry the Hawaii Seal of Quality.

“This has been a long time coming,” Loke says. “It follows on the heels of the Island Fresh and Buy Hawaii campaigns introduced by our department to promote consumption of locally produced goods.”

The Seal of Quality program was launched last month by Gov. Linda Lingle. It establishes a statewide program to protect the integrity and value of Hawaii agricultural products. The familiar Hawaii logo, promoted extensively by the Hawaii Visitors and Convention Bureau, is incorporated into the brand identity.

“Hawaii, expressed as a brand, makes a powerful promise to its customers. The word Hawaii is loaded with meaning for almost anyone who hears or sees it. It is a promise that is ours to keep,” says Gloria Garvey of The Brand Strategy Group that worked with the Department of Agriculture on the seals project.

Napa Valley and France have succeeded in protecting brands of wines and chocolates. States with effective seal of quality programs include Vermont, California, Oregon and New York.

“Name recognition is so powerful,” Loke says. “The role of government is to guarantee authenticity.”

Products for the Hawaii Seal of Quality must originate or be 100 percent grown in the Islands. Processed agricultural and food products must be entirely produced here. Quality standards must be met, as determined by Hawaii State export standards/laws and trade associations guidelines.

One-year renewable licenses are granted, and a nominal licensing fee is charged. Fees offset costs of program administration, marketing and promotional activities. State and federal funds will cover the majority of the program costs initially, according to Loke.

Hawaii Regional Cuisine chefs, including Sam Choy, Alan Wong and Roy Yamaguchi, have signed on to help the marketing campaign. Posters will soon appear in airports and other public places where locals, tourists and military personnel can spot them.

As Loke recounts the 12 founding members of the Seal of Quality program, he speaks of each one like a member of the family. These are agricultural entrepreneurs who are sustaining farm production and profitability through several generations. Oahu charter members are Kamiya Gold Inc., Nalo Fresh Inc., North Shore Cattle Co., Twin Bridge Farms, Kamauoha Farms and Manoa Honey Co.

Along with several Neighbor Island farms, they contribute to the state’s annual agricultural income of $544 million, 74 percent of which comes from diversified agriculture. Hawaii’s top crops are flowers and nursery products, vegetables and melons, seed crops and macadamia nuts.

Once dominant pineapple and sugar cane fields are converting to other uses, such as asparagus growth in Waialua and papaya cultivation in Laie.

“Hawaii has to compete on quality,” Loke says.

It is Hawaii’s point of difference. Loke points to the success of Kona-brand gourmet coffee that sells for six times the price of commodity coffee from South America. “If we have a higher quality product then we can charge a higher price,” he says.

It’s simple economics, which is not surprising for someone with Loke’s background. Originally from Malaysia, Loke came to Hawaii 18 years ago to attend graduate school at the UH. He received his Ph.D. in economics. The Kapolei resident applied his knowledge to regional economics keyed on tourism and health care before turning to greener pastures of agriculture in 2001.

Loke hopes the Seal of Quality program will “bring about more synergy and expanded commercial agriculture in Hawaii. It is not only a marketing tool,” he says. “We have to offer high quality products to keep and maintain our lead in the global marketplace.”

From opening new markets to helping farmers with crop insurance and export-readiness training, Loke is a man with a mission.It begins and ends with protecting our most precious commodity - the name Hawaii.

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