FMCG February 2011 by mediaweb

incorporating

9 421902 251016

february 2011 Volume 17 No 1 $9.15

THE BUSINESS OF MANUFACTURING • LOGISTICS • SUPERMARKETING

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Introducing the next generation in toilet tissue.

DISCOVER UNEXPECTED HYDRATION

SCHICKâ&#x20AC;&#x2122;S BIGGEST LAUNCH EVER! Introducing the New Schick HydroÂŽ - The First razor that hydrates your skin as you shave, with a water activated Gel Reservoir that lasts up to twice as long as traditional lubricating strips. EasyglideÂŽ Blades with skin guards that smooth your skin to reduce irritation. The Flip Trimmer on Hydro 5 will make it easy to trim in hard to reach places such as under your nose or sideburns. Hydro delivers a revolutionary shaving experience, going beyond hair removal to care for menâ&#x20AC;&#x2122;s skin.

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*Source Aztec Synnovate: Total Key Accounts, Total Kits & Blades Schick NZ MAT 21/11/10. # Ratecard Spend. +US Consumer Comments on facebook.com/HydroExperience website 息 2011 Energizer. Schick, Schick Hydro, EasyGlide, and Free Your Skin are trademarks of Energizer or its affiliates. Mach 3, Gillette and Fusion are trademarks of The Gillette Company.

A harmonious addition to the Red Box range

New Ingham Duets are a great value addition to the frozen category. Made from 100%

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New Zealand chicken, Duets are available in three creamy centres – Alfredo, Broccoli & Cheese and Ham & Cheese. In easy to display value packs, Ingham Duets are sure to hit just the right note with customers.

Your customers will Love ‘em. For more information about the Ingham Red Box range call Ingham’s sales department on 0508 800 785.

contents februar y 2 0 1 1

6 Editor’s note 8 Industry news 30 What’s hot

Features 16

Potatoes More information is needed, says Glenda Gourley

18 Why consumers pick the ‘Tick’ 36 Are you missing out on online opportunities?

Category checks

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22 Bread 34 Hand and foot care 46 Cold beverages

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Regulars 14 Fresh and local In season

20 Beef&Lamb

Hellers makes smallgoods big

21 FGC

Closer economic relations caveats

29 Nargon

A big year ahead

Introducing the next generation in toilet tissue.

OUR COVER The new Paseo Pure range of facial, household and toilet tissue delivers quality with a concern for the environment.

contents februar y 2 0 1 1

33 GS1

A single business number for New Zealand?

36 Grocery business

Keeping you up to date with packaging, IT, supply chain and logistics

64 Snap

Spotted out and about

65 Diary

Your guide to upcoming industry events

50 Feature

Chill out! Seasonal highlights

52 Industry news 54 Nargon

Reading the smoke signals

55 Directory

56 Profile

Back to the source

60 Industry news 62 Feature

Growers drive campaign to turn more vineyards organic

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Thanks for your support and being a part of driving a fantastic result in 2010. This year L’Oréal is coming with even more initiatives to drive growth and deliver more success together in 2011.

Within beauty market. MAT to 2nd January 2011. Aztec Grocery 2011: colourant, haircare, styling, cosmetics, skincare male and female, body, sun. L’Oréal = L’Oréal Paris + Garnier + Maybelline New York. 4 Skincare = Female skincare + Male skincare. 1 2

LCO0042_FMCG

e ditor ’s note Vol 17

No 1

february 2011

issn 1175-8279

Incorporating

Serving the business of manufacturing, logistics and supermarketing

tamara rubanowski – editor editor@fmcg.co.nz

Ashley Kramer – SENIOR account manager Mob: 021 211 1936 admanager@fmcg.co.nz

peter corcoran – account manager Mob: 021 272 7227 peterc@mediaweb.co.nz

Production Manager Fran Marshall (09-832 0024) franm@mediaweb.co.nz

Design Cherie Tagaloa

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Welcome! Welcome to the first issue of FMCG for 2011! With batteries recharged after a good break, the beginning of a new year brings a chance to reflect and consolidate after an extremely challenging time in the grocery industry. Retailers all over the world seem to recognise the opportunities to cater for more frugal shoppers, while maintaining margins, by bolstering their value-formoney and private label offerings. I came across another common theme for the new year: consumers want more information. A recent report showed that 54% of New Zealand consumers thought loose potatoes in-store labelling was inadequate. When selecting potatoes, shoppers want to know how they will cook, what variety they are and where they are grown. “As an industry, we do need to do better. Consumers are demanding more information and we need to deliver,” says Ian Corbett, chairman of the Promotion Committee for Potatoes New Zealand. Along the same vein, global baker Dean Brettschneider, laments the lack of information and education when it comes to specialty breads. He offers some constructive criticism in our bread

Official b2b magazine for the Gluten Free Food & Allergy Shows. Media sponsor: Pride in Print Awards.

Tamara Rubanowski editor@fmcg.co.nz

category check on page 22. Heeding these words of wisdom from Brettschneider and Corbett, the FMCG team set out to investigate potato labelling as well as the latest trends in nutrition and the cold beverage category. Consumers are increasingly demanding to know what goes into their food and drink. There is growing interest in the provenance of products, animal welfare issues and more nutritional information. The Heart Foundation ‘Tick’ is one example of a successful label that takes the guess work out of shopping for healthier choices. Turn to page 18 to find out why the ‘Tick’ is now found on more than 1000 products in our supermarket aisles and how producers can improve their offerings by getting involved with the ‘Tick’ programme. We examine the ingredients and the provenance of an outstanding new beer in our BWS section, and find out why more and more New Zealand vineyards are going organic. You could even be in to win a case of organic wine, if you subscribe to FMCG this month! Remember to email us your upcoming events, announcements and images – and enjoy this issue.

• Up to date • Relevant • Topical Stay in the loop by subscribing to our free twice-weekly email newsletter at www.foodnews.co.nz/subscribe or go to www.fmcg.co.nz for features, news, category checks and blogs at your fingertips 24/7/365.

What’s online

www.fmcg.co.nz FMCG has a few web exclusive features to get you clicking.

Contact Ashley Kramer at admanager@fmcg.co.nz or Peter Corcoran at peterc@mediaweb.co.nz to find out about our print and online packages. To discuss editorial submissions contact Pauline Herbst at editor@fmcg.co.nz.

Limited Edition Releases Regal Fresh Salmon Fillet in Zesty Lemon Pepper is only available until Easter 2011. Look out for new seasonal releases and produce updates on www.fmcg.co.nz

Construction of the New World Kaiapoi supermarket has begun

The new $12 million supermarket will replace the previous building that was destroyed in the earthquake on 4th September 2010. Find out online how this project is progressing and which other New World store has just received a $10 million upgrade.

New products From sparkling Cruisers to delicious new ready-to-go meals – take a sneak peek at some of the latest product launches online.

Tasti Foods believes calculated risks are the secret to strong growth Why is this multiple award-winning food manufacturer so successful? Chief operating officer of Tasti Products Ltd, Bryce Howard, explains it all in an interview on www.fmcg.co.nz

PL US

An extensive archive of previous issues of FMCG you may have missed as well as news, category reports and more.

news Kimberley-Clark staff swap keyboards for wheelbarrows The children from Roscommon Primary School in Clendon welcomed more than 40 guests onto their school grounds with a powhiri to celebrate their school garden makeover. The whole team from Kimberly-Clark New Zealand were rolling up their sleeves for the day, swapping their keyboards for spades, wheelbarrows and paint brushes. Kimberly-Clark and Roscommon School in Clendon are based in nearby neighbourhoods Kimberly-Clark New Zealand’s GM Tristram Wilkinson (back left), Roscommon Primary School principal Sonia Johnson (centre back) and helpers.

and a team of 42 staff from Kimberly-Clark spent the day at the school sprucing up its playground area as part of the organisation’s annual Volunteer Day. The many tasks included planting a potager garden with vegetables and herbs so that the children can watch them grow and learn about them. Volunteer days have been part of the worldwide ethos of Kimberly-Clark for the best part of the past decade and are an optional fully-paid day-off given to every employee as part of their employment contract. The project doubles as a teambuilding exercise where staff work alongside each other without the normal hierarchy. l

Kiwi King arrives in Switzerland Swiss consumers are well known for being very fussy about food and how it is presented. So it’s a bit of a coup that NZ King Salmon has just added the land-locked country to its export stable. The company has worked for two years to meet very specific product requirements from Migros, Switzerland’s biggest supermarket chain. Intensive work by the company’s product development team in Nelson has included investment in custom-designed equipment to meet specific dimensions for smoked salmon products. NZ King Salmon ceo Grant Rosewarne says the hard work has paid off with the resulting manuka-smoked product exceeding the customer’s requirements. “Frankly, we raised the benchmark. They asked for smoked salmon with a shelf life of 12 days from delivery – their independent testing showed our products easily surpassed that. “We are proud to say our product has been created naturally and delivers a fantastic result – a real credit to the product development team.” Rosewarne says Migros loves smoked King salmon and sees it as its flagship calling it “saumon royal”. “Swiss consumers look for an intense smoke flavour. The oil in manuka smoked King salmon carries this well – compared to the more common Atlantic salmon – and leaves a wonderful texture and clean flavour.” Switzerland may be about as far as you can get from the ocean and much closer to traditional European suppliers but Swiss fish lovers can expect to see a lot more of New

FMCG FEBRUary 2011

Zealand’s King Salmon. While Rosewarne will not reveal exact details because of commercial sensitivities, he says the NZ King Salmon farm in Marlborough. initial 12-month contract will extend essentially as long as the product performs. “We have really lifted the quality of smoked salmon on offer to Swiss consumers right throughout the country. This has been a two-year journey to get it right but the investment is going to pay off for many years to come,” Rosewarne says. “If you can sell salmon to the Swiss you can sell it to anyone because they have NZ King Salmon ceo Grant Rosewarne. the highest food produce expectations. It’s a real feather in the cap for New Zealand’s food production standards.” Migros is a co-op owned by more than two million Swiss people and employs more than 80,000 staff in 604 outlets. It has a turnover through its own outlets of SFr22 billion (NZ$29.9 billion). l

n ews Put your best bun forward! The annual battle of the buns is on again with the country’s official Easter bun competition – the Champion “Easter Bun Bake Off” – open for entries for the 2011 event. Goodman Fielder national field sales manager Paul Howley said the company is now taking entries for the competition, which identifies and publishes New Zealand’s top Easter bun stores in the North and South Island, during the two weeks before Easter weekend. “As with last year’s competition, we will announce both North Island and South Island winners. However, bakers around the country will need to be in top form, as a master judge will now assess all entries to ensure consistency of standards across New Zealand.” As a result, judging will now take place over two days during which master judge Mike Turlej will attend judging sessions in both regions. He will be assisted by a panel of baking and food experts including Annabelle White. Judges will assess buns for the following criteria: straight and over crosses; application of the bun glaze; crust colour; symmetry and batching of product; crumb softness; even dispersal of fruit; and, a good aromatic flavour. “As with previous years, in order to be eligible for judging each bakery must use three Champion products, one of which must be either Champion Breadmix Hot Cross Bun mix or Champion Flour,” Howley said. The Bake Off runs from early February to March with the winners announced at the end of March/early April. The winning bakeries will receive $1500 each plus a customised promotion package for the store. Bakeries have until 9 March to enter in the bake off, although it is recommended that they register immediately. To enter the Easter Bun Bake Off 2011, bakeries should

Annabelle White with the winning North Island buns 2010.

Winning North Island buns 2010.

indicate they wish to enter, they can phone 0800 11 0800, register online at www.championflour.co.nz or contact their Champion expert in their territory. Last year’s North Island winner was Wild Wheat bakery in Pakuranga, whilst the South Island top spot was claimed by Kidds Cakes and Bakery in Christchurch. l

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news Keri juice new market leader Coca-Cola Amatil New Zealand (CCANZ) has taken hold of the juice market with a spectacular result achieved in December 2010. For the first time ever in the shelf stable fruit juice and drinks category it has surpassed its long-term rival Frucor in total volume share. For the four week period ended 2nd January 2011, Keri juice achieved a 42.8% manufacturer share ahead of Frucor at 38.4%. Keri as a brand was almost twice the size of the next biggest individual brand Just Juice on 23%. It’s been eight years since CCANZ took over Rio Beverages, which at the time sold mainly bulk low value juice products. Since then it has given it a massive overhaul introducing premium range products, interesting new flavours and improved the overall taste and quality. It’s also dramatically changed the look of Keri’s product ranges for definite shelf appeal. Commercial manager Zane Martin says this excellent share result shows consumers are indeed voting with their wallets and Keri Brand is now firmly entrenched as a household favourite. CCANZ has established a cross-functional Keri national sales manager Craig Cotton and commercial manager Zane Martin. steering team to guide Keri Juice in all decisions. Manufacturing upgrades have vastly improved the among many New Zealand consumers. quality of the juice at Keri’s plants in Auckland and Keri Juice has a number of new product range extensions Christchurch, and the packaging and appearance of the various in the pipeline which are set to command a premium from ranges have evolved to provide a strong brand identity. National sales manager Craig Cotton says shoppers will notice those shoppers looking for more exotic fruits. It’s been a stellar few months for Keri Brand with not only a fresh new look for the Keri apple-based 1-litre range, which its latest market share achievement but it also scooped will shortly be extended to both 3-litre and single serve. the 2010 Supreme Award at the New Zealand Juice and Two tasty new flavours have been added to this 1-litre range Beverage Association’s National Awards for Keri Apple and – Five Fruits and Pineapple-Passionfruit, in recognition of Blackcurrant Juice. l the strong preference for tropical and apple-based flavours

The Keri range.

FMCG FEBRUary 2011

news Charlie’s products head to Asian supermarkets In October 2010 Charlie’s products were shipped to Coles in Australia. Now the premium beverage company Charlie’s Group (NZX:CHA) is heading to Hong Kong and a spot on the shelves of another big supermarket chain. PARKnSHOP has placed its first order for Charlie’s and Phoenix Organic branded products and confirmed it will be trialling the products in around 60 of its more than 230 high-end stores over the next few months. PARKnSHOP has a history dating back to 1828. It is Hong Kong’s largest food retailer and part of the A S Watson Group, an international retail and manufacturing business with operations in 34 markets worldwide. Charlie’s Group ceo Stefan Lepionka says the order is a positive step toward a permanent listing and relationship with PARKnSHOP. “PARKnSHOP sought a meeting with us on a buying visit to New Zealand. We are pleased to advise they have now confirmed they will trial 24 products from across

our Phoenix and Charlie’s range, with a view to a more permanent ranging of the successful flavours.” PARKnSHOP also has a major presence in Southern China where it was recently awarded the title of “Consumers Most Favourite Brand Shopping Centre”. Charlie’s Group Limited is a New Zealand owned company listed on the New Zealand Stock Exchange and operating principally in the Australasian market. The company manufactures and markets a range of ‘not from concentrate’ fruit juices as well as smoothies and organic beverages. The business was established by friends Stefan Lepionka (ceo), Marc Ellis (director, shown above) and Simon Neal (distribution manager) in 1999 and floated on the New Zealand Stock Exchange in July 2005. Charlie’s operates in New Zealand and Australia and exports to territories in Asia, the Pacific, the Middle East and the Indian sub-continent. l

Cottonsoft turns over a new leaf in tissue excellence Cottonsoft, New Zealand’s leading toilet paper manufacturer, has introduced a fresh face to the premium tissue category. The Paseo Pure range of facial, household and toilet tissue delivers quality with a concern for the environment to Kiwi families. Re-invigorating the industry in many ways, Paseo Pure is the first to use Shea butter in facial tissues to care for the delicate skin around the nose. Germaine Keenlyside, Cottonsoft’s marketing manager, says the new generation in household paper fills a gap in the market for a premium, stylish tissue. “Cottonsoft undertook in-depth market research before creating Paseo Pure. We used this knowledge to develop a range

FMCG FEBRUary 2011

that exceeds the quality, value and comfort expectations of New Zealanders. “We are looking forward to the response from retailers and customers who have experienced the range – we are confident it will be a positive one.” Cottonsoft’s 25-year history in the New Zealand toilet paper industry ensures Paseo Pure is in the best position to grow the premium tissue category and become a household staple, she adds. With a $2-million campaign across mainstream media backing the launch, expect to see far more buzz around Paseo Pure. The Paseo Pure range will sit alongside Cottonsofts on retailer shelves from February 21. l

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FRESH & LOCAL Specialist resource writer John Clarke highlights developments in produce, fish and meat supply.

IN ITS PRIME Mangoes and pomegranates from offshore. Local stone fruit are at the best and most economic. New season kumara, garlic, shallots and beans. New Zealand tomatoes, capsicums and courgettes are at their peak. Snapper, trevally and gurnard are available in abundance.

SHOT TO BITS Asparagus and artichokes. New Zealand citrus. Red currants and gooseberries. Leeks often lack quality.

Poultry Excess turkey cuts are a very economical option at present with the hangover from the Christmas rush.

Fish This is the best time for the inshore fish species. The snapper season is in full swing with plenty in the markets though the price is a bit steep. It is the same for gurnard and sole â&#x20AC;&#x201C; plenty around but the price is up. But it is not all doom and gloom on the price front, so hereâ&#x20AC;&#x2122;s the gen. Kahawai, trevally, mullet and flounder are greatly underrated fish in plentiful supply at present and inexpensive. Terakihi is a medium textured fish with very good white colour at their best and most numerous in summer/ autumn, so now is the time for this fish. Kingfish is one of our best fish, but supply is often tight as there is never enough quota. However, this month supply is at its peak and prices will be reasonable. Fresh Pacific oysters are not at their best this month, but on the other hand greenshell mussels are fat at this time of year, inexpensive and great for consumers to throw on the BBQ, so it is well worth the effort of having these live shellfish on hand.

MEAT So far the dreaded drought has not happened and feed is plentiful. Beef The Australian floods and high overseas grain prices have both helped to keep supplies tight and prices are firming. Local trade prices for beef are 65-75c/kg ahead of last year. Saleyard sales of store stock in

FMCG FEBRUary 2011

the North Island have lifted following the rains, and values are well ahead of similar sales last year. Sheepmeat Lamb schedule prices appear to have bottomed out early this season in response to recent rains and lack of numbers. The trend is steady but at $5.65/kg cost is still $1.36/kg ahead of last year. Cervena/farmed venison The venison schedule also seems to have bottomed out but at about 60c/kg ahead of last year; the trend is steady at $7.38/kg. Kill estimates for the year are well back and are not likely to pick up until 2012 when hopefully increasing numbers of hinds come into production. The latest survey shows deer slaughtered are at the lowest levels since 1997. There are still too many hinds being killed undermining industry growth to meet product demand. So with production levels 22% down and short supply predicted do not expect the traditional summer price fall to happen this season.

Fruit Still the fruity time of the year with all the berries, melons and stone fruit in abundance. Plums, apricots, peaches and nectarines are the best buys this month and there are still some cherries around. The first early new season Kiwi grown apples and pears have arrived in the market and will be followed shortly by main season varieties. This seasonâ&#x20AC;&#x2122;s Hass and Hayes avocados (pebbly skinned varieties) are everywhere. These are our best

Vegetables

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avocados but are of variable quality though well priced at present. The first of the round, green Reed variety have arrived in the markets. Fresh raspberries are well priced, but will get more expensive next month and will be finished by April. Look for blueberries through to mid March, with blackberries about to hit the markets also. Loganberries are always around. The very short season for gooseberries and blackcurrants is almost over. All varieties of New Zealand grown melon, prince, water, rock and honeydew are now here in numbers. There are very few New Zealand grown grapes around – hard to find but the best flavoured for my money. From offshore, mangoes are the best buying and of very good quality. Also of top quality are bananas. Pomegranates from California have arrived and more consumers have cottoned on to this amazing fruit.

This is also a great time for New Zealand produced vegetables with all the traditional summer varieties in full swing. Courgettes are in great supply so expect the price in the markets to come back from the recent highs. It is the same for capsicums and aubergines with good supplies now coming through. Tomato supply is at its peak with a reasonable selection of fully ripened varieties available. A few outdoor grown fruit are available for those with a penchant for a more rustic type of tomato. All the locally grown beans are now also available including the round ‘French’ style, flatter Mangere pole and a few runners coming in. Beetroot is most plentiful from November until April. Broccoli supply and quality has improved and is very good buying at present. Fresh sweet corn is arriving in bulk this month and the cost will only get better as summer

progresses. All the annual herbs are in full swing with salad leaves and rocket in abundance. All the varieties of good quality new season kumara; Beauregard (orange, softer, sweet), Tokatoka (yellow, firm, good flavoured), Owairaka and northern rose (traditional red, very firm), are arriving in the marketplace. There are lots of good quality new crop potatoes all over the place and plenty of variety too. There are also plenty of the so-called ‘Maori’ potatoes coming through. These traditional varieties are becoming more and more popular with discerning consumers and well worth carrying. Buttercup and a few of the early pumpkin varieties are starting to arrive. New Zealand red onions are back but leeks are not at their best this month. However, baby leeks are available and a good substitute. New Zealand garlic and shallots are available again also, though pricey. Sadly the globe artichoke and asparagus seasons are about finished for another year.

potatoes

Consumers committed, but seek more information

n 2010, Potatoes New Zealand released an independent research study conducted by The Nielsen Co which proved that the potato has maintained a firm hold on its position as the country’s favourite vegetable. Kiwis have embraced the potato so much so that 93% are cooking the vegetable at least once a week (three times more than competing products, rice and pasta) and potatoes account for 18% of all fresh vegetable sales. However, it wasn’t all pleasant reading for the industry, with consumers sending a clear message that labelling of potatoes, particularly loose potatoes, needed improvement. “Tell us how they will cook, what variety they are and where they are grown”, was a consistent theme with over 54% of consumers indicating loose potatoes’ in-store labelling was inadequate. By contrast, bagged fresh potatoes’ consumers were a lot happier. However, when you consider that 39% of potato sales are loose, you can see why the industry has sat up and taken action. Potatoes New Zealand has undertaken a comprehensive strategy with growers, packers, wholesalers and retailers to ensure issues highlighted around labelling, particularly retail sales of loose fresh potatoes, are being addressed.

FMCG FEBRUary 2011

“As an industry, we do need to do better. Consumers are demanding more information and we need to deliver,” says Ian Corbett, chairman of the Promotion Committee for Potatoes New Zealand. “Education plays a huge role in this too as we need to communicate how growing conditions affect how a potato cooks and how this impacts on labelling.” One of the key initiatives to address the issue has been introducing cook test guidelines for growers to get consistency across the industry (available at www.potatoes.co.nz). Corbett explains that it’s not as simple as growers labelling a potato variety as waxy or floury. “Niche varieties from a small region with a short growing season are mostly consistent, but some of the commonly-grown varieties show extreme changes in characteristics throughout the season and are also influenced by weather, climate and soil types. This can have a dramatic effect on the cooking performance of a potato. It is a complicated message – and the only way we can make that easy for our consumers is for growers to cook test throughout the season and label potatoes accordingly.” The cook test guidelines give growers and packers step-by-step

featu re

FMCG guest writer Glenda Gourley has worked in the potato industry for many years in which time she has been involved in establishing and implementing the education, PR and marketing strategies for Potatoes NZ. Improving the potato purchase experience for consumers has been identified as a priority for 2011. She is also chairperson of The Chip Group and was recognised in the 2010 Food Industry Awards with the Orica Chemnet Award for Excellence in Leadership. Gourley has been a key instigator in the strategy that aims to improve the nutritional quality of hot chips.

standardised cooking tests to enable them to confidently classify how potatoes will cook. Consumers can then be confident that the label is accurate when they cook them at home. Corbett says the variety of a potato ideally needs to be the secondary message, behind cooking end use. Improved visibility of this information, which has historically been too subtle, is being worked on by most growers. Corbett says addressing where the potato is grown is the easiest to fix as all fresh potatoes are New Zealandgrown. “We just need to tell our customers,” he explains.

Price point considerations Consumer trends and buying patterns were also investigated in the research. Perhaps one of the most surprising results is that consumers

buy potatoes regardless of whether or not they are on ‘special’ – in fact one consumer segment actually purchases less if the price is low. This begs the question – ‘if potatoes are going to be purchased anyway, why are they on special?’ Optimum price points, where they are perceived as good value and expensive are also revealed in the price sensitivity part of the study. The research also shows that potatoes have shaken off their inaccurate reputation promoted by ‘faddy diets’ and are being recognised as the ultimate healthy weight-loss food, with 85% of consumers now recognising that potatoes are healthy and highly nutritious. For more compelling facts about what consumers think about New Zealand’s most popular vegetable and how much they are prepared to pay, visit www.potatoes.co.nz.

Key points for a discerning potato buyer Sometimes shoppers may choose a smooth looking potato over a misshapen one and assume that it is a better product. This is not necessarily the case as some varieties characteristically have skins which are netted or have eyes in them. A potato does not have to look good to cook brilliantly! We recommend that shoppers buy a potato suited for how they want to cook it. Our growers cook test potatoes and label them accordingly. That way shoppers can be confident that the potato will cook as they expect it to.

february 2011 FMCG

Why consumers pick the ‘Tick’

edia reports highlighting the increasing incidence of obesity, diabetes and cardiovascular disease have led to a new awareness among many shoppers, but searching supermarket aisles for nutritious food with reduced fat and salt can be a mind boggling task. That’s why the Heart Foundation Tick continues to be the symbol consumers trust to make healthier food choices. Latest research shows that 93% of

main grocery shoppers have heard of the Tick, and that nearly two-thirds (58%) would buy a product with the Tick over a similar product without it. Consumers trust the Tick brand as an indicator of quality and providing genuinely healthier choices within food categories. Tick products are independently tested to ensure that nutrition standards are being met, both on joining the programme and then through an ongoing random testing process. For most Tick foods it is important to meet standards for saturated fat, trans fat, salt and energy – these are improvements that can have the biggest impact on the health of New Zealanders. Standards for fibre and calcium are also set in relevant food categories. The Heart Foundation Tick programme is self-funded and notfor-profit. In return for the right to use the Tick logo on approved products, packaging and advertising, Tick licensees pay a licence fee based on the annual sales of the approved product/s. This pays for: • Ongoing research and development of the Tick nutrition standards. • Random testing of Tick approved products. • The administration, management and marketing of the Tick programme.

Improving nutrition

Jonesy Elekana teaches Minister of Health Tony Ryall to read nutritional information.

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A hard-hitting report from the UK health watchdog group National Institute for Health and Clinical Excellence (NICE) recently called on government and the food industry to cut salt and fat from processed foods – a move it says would save tens of thousands of lives a year.

The report recommends a public health approach to combat the effects of poor diet on cardiovascular disease, including a ban on trans fats, and a reduction of saturated fats in processed foods and takeaways, as well as slashing consumers’ daily salt intake by nearly two-thirds over coming decades. The recommendations followed two years of extensive consultation and review of existing evidence, but have been largely dismissed by the UK government. The Heart Foundation’s nutrition advisor, Delvina Gorton, commented: Cardiovascular disease (heart disease and stroke) remains the leading cause of death in New Zealand, responsible for 40% of deaths annually. People’s unhealthy food choices certainly play a major role in this. “The Heart Foundation is supportive of strategies which help consumers to eat more healthily. The Heart Foundation Tick is an example of a food labelling system which signposts healthier products within a food category.” Processed foods are often high in saturated and trans fats, salt and sugar, but the Heart Foundation encourages and works with the food industry to improve the nutritional content of foods.

Food for thought Primary schools are being encouraged to sign their classes up for a new free pilot programme that combines the expertise of the Heart Foundation and New Zealand’s biggest grocery retailer. Foodstuffs’ Food for Thought Education Trust has embarked on a unique collaboration with the Heart Foundation’s Heart Start programme. The initiative will see

featu re Tamara Rubanowski talks to the experts at The Heart Foundation:

schools nationwide implementing new interactive courses that aim to improve the health of the community. With the support of Foodstuffs and the Ministry of Health, these programmes can be provided to schools for free. Foodstuffs managing director Steve Anderson says: “It is our aim to see every primary school in the country sign up for these programmes. They are designed specifically for the New Zealand school curriculum, cost very little to implement and are backed by leading authorities in health, nutrition and education.” Through the Food for Thought programme,schools are provided with free resources. Qualified nutritionists teach children the importance of a balanced diet; understanding nutritional information panels; and preparing healthy meals. Children have the opportunity to visit the supermarket to purchase ingredients for a healthy class lunch, which they then make back at the classroom. Heart Foundation CEO Tony Duncan says: “We are very excited about the Food for Thought collaboration.The initiative works in a smart way with industry partners to increase the number of children who can benefit.” Health Minister Tony Ryall is enthusiastic about the partnership, saying, “This is a great example of the private and public sector working together to achieve benefits for the health of the nation.”

Ticking all the right boxes One recent example of a successful Tick product development is Wattie’s

new range of canned chicken. Four varieties were developed in 2010 to give consumers a tasty and nutritious alternative to canned tuna, already a popular choice in the lunch market. Heinz Wattie’s general manager marketing, Tim Skellern, said the canned chicken products, made from chicken breast, “tick all the boxes for the health-conscious snacker and the busy office worker, including carrying the Heart Foundation Tick of approval”. He said that although chicken was already New Zealand’s most popular meat, the canned format would take chicken into new lunch and snacking territory. “It is portable, convenient, a great source of lean protein and has a great flavour selection, so consumers can now enjoy a chicken sandwich, cracker topping or salad anywhere they like.” Wattie’s chicken has been a great success story. The launch of the Wattie’s brand into the category has driven strong category growth, 55.3% value growth in the current 26 weeks to 02 January 2011 with the Wattie’s brand contributing to over 80% of this incremental category value. Wattie’s volume share of the market is now at 31% (volume share current 26 weeks to 02 Jan 2011).* “The success of theWattie’s brand is due to our reputation for innovation and our ability to anticipate and meet the needs of the modern New Zealand consumer. Wattie’s canned chicken is another product that ticks all the right boxes with consumers,” said Skellern.

How can a product manufacturer receive the ‘Tick’ for their product? “For each food category, we have a set of nutritional standards or criteria against which food products can be evaluated,” explains Nicola Martin, acting Tick manager, who oversees the marketing, licensing and compliance of the Tick within New Zealand. This also involves participation in the regular assessment of the Tick Criteria with Australia. “The actual criteria will vary for different food types but are broadly based on limiting negative nutrients such as sodium, saturated fat and kJ values, and encouraging positive nutrients such as fibre and calcium. Basically, food products that meet the criteria for their food category can get the Tick.” How long does this process usually take and what is involved? “There are a couple of key elements to the process – firstly, a sample of the food product needs to be independently analysed to ensure that its nutritional values meet the criteria, and secondly, product packaging that features the Tick must be approved against our logo and marketing guidelines. Once these steps have been completed, a contract can be drawn up, giving the product manufacturer the licence to use the Tick. To find out more about the Tick or to enquire about specific Tick nutrition criteria for product development, visit www.pickthetick.co.nz” How many products with the Tick are currently available in New Zealand? “Over 1000 products in New Zealand currently have the Tick and the list is growing all the time.” What are the Tick brand’s main activities in 2011? “Look out for our new advertising campaign – based around family meal solutions, and we’ll also be at the Auckland Food Show in August,” says Martin.

• Source: ACNielsen NZ Scan Track (Canned Meats) Week ending 02 January 2011

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Hellers makes smallgoods big Brydon Heller, marketing coordinator for Hellers.

This month’s guest writer on behalf of Retail Meat New Zealand, is Brydon Heller, marketing coordinator for Hellers.

When my great, great grandfather Gorg emigrated from Germany to Arrowtown in the 1880s’ gold rush and set up a shop supplying miners with smallgoods, he could never have imagined the Hellers Company growing into the New Zealand story it is today. Hellers now produce sausages, bacon and ham with plants in Auckland and Christchurch producing over three million sausages and half a million slices of bacon a week. This generation of Hellers started when my father,Todd Heller, began making what was then regarded as gourmet sausages from his butcher’s shop in the Christchurch suburb of New Brighton. He has an amazing palate and travelled extensively looking for new and interesting ideas for innovative products and tastes, and it was this introduction of more exotic sausage varieties that had people queuing out the door of his shop. Faced with this high demand, a factory was established in Kaiapoi, just outside Christchurch and began supplying throughout the South Island. After merging with Tasty Bacon, the company became Heller Tasty, and the purchase of Vienna Sensational Foods in Auckland gave the business a national distribution network. Hellers Ltd now has over 400 staff producing up to 300 tonnes of sausages in 60 varieties along with a huge range of bacon, ham and service deli smallgoods under the Hellers, Sensational and Ryan brands. When Hellers ‘London Pride’ sausage was judged the supreme sausage of the year in the 2002 Great New Zealand Sausage Competition, a series of television commercials shot in London with butchers sampling London Pride sausages was produced. The formula of the public

Todd Heller (founding director), John Key (PM), Nick Harris (managing director), Graham Heenan (chairman of the board) at the opening of the new Hellers factory.

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taste-testing Hellers products has been applied to other Hellers products since, with campaigns filmed in London, Rome, Munich, New York and throughout New Zealand.

Keeping up with demand To help keep ahead of demand, Hellers recently opened a new $18m state-of-the-art plant in Kaiapoi, doubling the size of production out of Christchurch. This new facility with the latest technology enables demand to be more than met, but at the same time doesn’t compromise the traditional Hellers values, standards of quality and ingredients. By embracing technology and product and packaging innovation, Hellers products can meet and exceed customers’ expectations as well as keeping the brand fresh, interesting and appealing. Consumers are not just looking for high quality and taste in their smallgoods but with increasingly busy lives, they are also looking for convenience and ease-of-use. Hellers has therefore introduced the innovative ‘gasflushed’ shaved meat packs that allow for longer chiller life for the retailer and longer fridge life for the consumer. Hellers’ convenient resealable ‘Flavour-Fresh’ packs for sausages are perfect for the fridge or the freezer and we are also about to release innovative new bacon packaging that will transform Hellers’ bacon products.

New look The Hellers brand and range of products has had a revamp and has already hit the chillers. This major new brand refresh positions Hellers as ‘New Zealand’s Butcher’ with a ‘come on in’ appeal, designed to bring to mind the nostalgic days of friendly, fresh, local suppliers of produce. The new Hellers logo is evocative of a hanging butcher’s sign, echoing the roots of Hellers through generations of butchers passionate about their trade. It’s loaded with connotations of the charm, craft and credibility of a local supplier of smallgoods, rather than a less appealing, faceless corporate manufacturer.The new logo also has the signature “as sure as Hellers”, carrying with it an assurance of quality in a friendly tone of voice. The new logo and packaging marks a major point in the Hellers story and coupled with the advances in technology, innovation, product range and quality, the company is looking forward to a very successful future indeed.

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Closer economic relations caveats Should we adopt Aussie rules? By Katherine Rich In 1983 Prime Minister Robert Muldoon made history by signing the Closer Economic Relations (CER) agreement between New Zealand and Australia. In the decades that followed, excluding the vexed issue of apples, our two countries worked hard to strip away tariffs and restrictions, which made it easier for Kiwi grocery suppliers to sell their goods across the ditch. Much progress has been made in the last 27 years and Australia remains the most logical export and accessible market for New Zealand’s grocery manufacturers. Today’s Government continues to focus on building the single economic market, but it’s important to appreciate that not all changes made in the name of CER are necessarily a step forward for our producers. No one working in the grocery sector disagrees that greater alignment can bring significant opportunities for New Zealand in the long term. However, as with most negotiations where one party is bigger and has more power than the other, alignment more often means New Zealand agrees to incorporate Australian regulation and not the other way around. It is the Food and Grocery Council’s role, on behalf of our members, to point out where plans to adopt Australian regulation may not be in the best interests of New Zealand’s companies. Worse still, that in some cases, adopting Aussie rules could actually mean increasing the amount of red tape faced by companies. A good example is the major debate brewing about the regulatory oversight of olive oil. Standards New Zealand is currently looking at implementing a voluntary joint standard for olive oil that is a genuine case of “caveat ciborum venditor” – grocery sellers beware. FGC has been told that the push for a local standard has been largely driven by Australian olive growers who represent a far more significant market than here.We get the impression that New Zealand has been caught up in the process. Why our countries need a separate standard for olive oil in the first place is a fair question to ask with no immediate common sense answer. Supporters of separate Australia / New Zealand rules say that our country doesn’t have its own clear rules on

Katherine Rich, CEO, NZ Food & Grocery Council. Email: Katherine.rich@fgc.co.nz

how to produce and market olive oil here. While this is technically correct, such comments are actually misleading. There are, of course, extensive standards for olive oil in place internationally overseen by the International Olive Council (IOC). The IOC, set up in 1959, has governed 95% of international production, overseeing and maintaining high standards for olive producers and their products. The Codex Alimentarius, the body which oversees a world food code, also has an international standard in place for olive oil, once again begging the question why Australia and New Zealand need to deviate from these standards to introduce their own set of rules. What is of most concern is that FGC members believe that olive oil sourced from the Mediterranean (over 95% of all olive oil sold in New Zealand) will struggle to meet the new rules as drafted. They are also concerned about potential requirements to completely relabel and rebottle some product lines at huge costs to their companies. The concern is that New Zealand companies will potentially find themselves facing more cost and red tape – not less, the usual aim of economic alignment. Initially the rules will be voluntary, but this does not allay FGC members’ concerns. It only takes political pressure further down the track to make such rules mandatory creating a significant barrier to trade. FGC is awaiting confirmation from suppliers whether their Italian and Spanish producers are concerned, but the lack of good reason for the introduction of a new layer of bureaucracy offered by officials so far is starting to look like patch protection. The new standard is currently the subject of a public submission process. FGC is working with members to oppose the adoption of this unnecessary standard, which – CER or not – makes no sense for New Zealand.

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A toast to bread! FMCG investigates new trends in the bread category, talks to local specialty bread producers and consults professional baker and patissier, Dean Brettschneider.

fter completing his apprenticeship in New Zealand, Dean Brettschneider worked in the US, Britain, Europe, Asia and the Middle East gaining experience in all areas of the baking and patisserie world. Today, he is regarded as one of the best bakers on the planet. His baking books have won World Food Media Awards and Gourmand World Cookbook Awards. He also appears as judge of the successful TV series Nestlé New Zealand’s Hottest Home Baker, plus many other TV programmes that promote baking excellence. So how does Brettschneider rate the bread category in New Zealand supermarkets, compared to the time when he first started baking here? “The bread category within New Zealand has not really moved on much in the last five years,” says Brettschneider. “Since I started baking it had grown into ethnic varieties, but

FMCG FEBRUary 2011

for some reason the more central European breads have not taken off. Those being the heavy Scandinavian and German style rye and grains breads. Even the French Sticks have not moved on.They are still the white long bread with no real texture or crumb. The so-called sourdoughs are nothing more than white breads with a sour flavour added. It’s time to bring some authenticity into the speciality bread market.” But after saying all that, Brettschneider also concedes that New Zealand white, wholemeal, light grain bread is the best in the world. Which new trends does Brettschneider predict for the bread category? “Simple breads that are authentic and also the heavier grain breads. Consumers also need to be educated, so they know what to do with these types of breads,” explains Brettschneider. Brettschneider’s breads can be

bread THE BREAKDOWN Current MAT to 2 January 2011

found at Zarbo’s in Auckland and include Pain Miche; Pain au Levain; Turkish Pide; Vollkorn; Fig & Aniseed (a small loaf designed for cheese) and real baguettes. His advice for the bread aisle is simple. “Stock a range of Global Baker Dean Brettschneider breads. My breads come with authentic techniques and real crust, crumbs and texture. They will be packaged and merchandised correctly. I stand behind my brand and will continue to educate consumers,” he says. Following some years based in Shanghai, Brettschneider is now working from Denmark and Britain, but still visits New Zealand regularly each year and has bakery interests in Auckland and Shanghai.

New campaign for Abe’s Bagels “We have some very exciting plans for range extensions that we’re working on for 2011,” revealed Megan Sargent,

Dean Brettschneider.

director – ABE’S Real Bagels. “We have been increasing the distribution across our range, and particularly of our Baby Bagels and our organic bagel range,” says Sargent. “Aztec data shows our organic

Total bread: $486.207m Value % Chg vs YA -1.3 Total white bread: $119.662m Value % Chg vs YA -2.1 Total light grain: $125.133m Value % Chg vs YA 2.8 Total meal: $59.445m Value % Chg vs YA -6.8 Total heavy health: $54.962m Value % Chg vs YA -1.8 Total plain buns & rolls: $26.928m Value % Chg vs YA 1.8 Total crumpets: $10.439m Value % Chg vs YA 9.7 Total other specialty: $22.322m Value % Chg vs YA -5.5 Total muffins: $12.779m Value % Chg vs YA 7.6 Total pita: $11.200m Value % Chg vs YA -7.3 Total Easter buns: $8.106m Value % Chg vs YA -4.3 Total fruit: $7.297m Value % Chg vs YA 0.9 Total buttered bread: $8.717m Value % Chg vs YA 0.6 Total bagels: $5.873m Value % Chg vs YA 4.4 Total pikelets: $3.349m Value % Chg vs YA -12.7 Total par-baked: $3.784m Value % Chg vs YA -17.9 Total sweet buns & rolls: $2.380m Value % Chg vs YA -21.8 Total Indian bread: $2.407m Value % Chg vs YA 3.3 Total waffles: $799,734 Value % Chg vs YA 2.5 Total other flavoured: $340,520 Value % Chg vs YA 4.4 Total garlic: $175,275 Value % Chg vs YA 228.2 Total other: $103,343 Value % Chg vs YA -27.5 * ACNielsen New Zealand ScanTrack (Databank)

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One of the recent innovations includes Vogel’s Chia & Toasted Sesame, which is a naturally healthy, low GI bread.

range skus are the two fastest growing fresh bagel skus in the country: 41% for Plain, and 35% for Wholemeal. The Baby Bagels are also growing quickly, at 27%. Sargent adds: “Despite overall category growth being very small, ABE’S Bagels are experiencing double digit growth. Even the top-selling sku, ABE’S Natural bagels (which on their own account for an astonishing 20% of the NZ bagel market), are growing at 10%.” ABE’S Bagels has recently launched a new advertising campaign featuring top personal trainer, Lee-Anne Wann of TV’s Downsize Me fame, showcasing great uses for bagels.

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Quality Bakers continues to lead the bread market in New Zealand with AM

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a portfolio of iconic and well-loved brands including Vogel’s, MacKenzie, Freya’s, Nature’s Fresh and Molenberg, says Neill Arnold, group customer marketing manager. “Testament to the strength of these brands is their continued market share leadership in their relevant segments (Aztec MAT Value Share to 3 Jan 2011),” adds Arnold. Quality Bakers is a division of Goodman Fielder New Zealand. Recent market growth of the premium segment with strong performances from Quality Bakers premium brands such as Vogel’s and Freya’s supports the insight that in tighter economic times consumers are certainly more aware of what constitutes value for money, but are at the same time prepared to support brands that deliver everyday quality indulgence,

particularly when supported by brand campaigns that resonate at an emotional level. The Freya’s ‘Bread with Character’ campaign launched in October 2010 has been a great example of this with 3.9% value growth* in the last quarter, well ahead of the category at -1.8% value growth*. “Vogel’s has been reigniting consumers’ love affair with the brand since August with a range of communications on TV, billboard and print,” adds Nicola Ellish, senior category marketing manager – baking, Goodman Fielder New Zealand. One of the recent innovations includes Vogel’s Chia & Toasted Sesame, which is a naturally healthy, low GI bread now with the natural Chia plant source providing Omega 3, combined with the deliciously nutty flavour

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of sesame seeds. This new bread has been a great success for Vogel’s and is now the fourth most popular in the range with Vogel’s consumers. * Aztec Quarter Ended 3 Jan 2011

Venerdi’s organic, gluten-free and spelt breads Venerdi has a substantial range of organic baked products: spelt sourdoughs, three breads and bagels (gluten containing) and the glutenfree range including five breads, baps and pizzas. The Venerdi range is clearly an essential for any well stocked supermarket, says Phil Grainger, sales manager and joint owner – Venerdi. “Many customers with a gluten problem also have dairy issues and vice versa. Soy is also a strong allergen 1 0 : 5 6

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This is one in a series of projects that aims to get kids more active. Because at Nature’s Fresh we believe active kids are happy and healthy kids.

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for some. Sugar is also not desirable in bread when we get far too much elsewhere. This means people will drive past stores to find the products that suit,” comments Grainger. Venerdi’s “Full flavour Six Seed” gluten-free bread won the best gluten-free product in the ‘Healthy Food Guide’ awards 2010. “Venerdi breads are famous for being: certified organic, dairy free, soy free, sucrose free and are made for your customers’ health and wellbeing,” says Grainger. These breads are sourdough based with nutritious seed combinations. Some stores only stock the breads, where as the baps and pizzas tend also to be consistent sellers. Our new product last year has been the ‘Brownie’, something special when you really need to trust it to be gluten and dairy free. This year we are looking to do a AM

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bread freezer pack of our gluten-free burger buns as a freezer partner to glutenfree burger patties,” says Grainger. “Venerdi sales are still hitting record months with growth this year at 9%, even against a period of tough competition in the category.Venerdi’s model of ‘no middle man costs’ and direct communication from store to factory means your customers get the best valued bread and the store can extract a better margin,” explains Grainger. Venerdi currently supplies supermarkets and organic shops from Kaitaia to Invercargill.

Natural pita bread Authenticity has always been the primary focus for Danny’s Real Pita Bread Company. Based on a centuries-old recipe, the wide variety of bread produced by the company is

free of preservatives, additives and chemicals. Danny’s Real Pita Bread Company started as a family business that takes considerable pride in traditional breads, making pita bread “the way pita bread should be”. Pita, like all bread, is best fresh, but will keep well in its bag for a few days. Because Danny’s pita breads contain no preservatives or emulsifiers, it is best for consumers to freeze pita bread immediately after purchase and take out just what they need. It thaws quickly within 15 minutes, or it can be microwaved for about 30 seconds. The best way to get pita bread crispy is to toast it for a few minutes or heat it up in the oven. The company also provides pita bread in a vacuum container. It stays fresh for longer and is ideal for taking away on holiday. It can also be frozen and used in the same way as the bagged pita bread.

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“Our bread bags were relaunched with new artwork in 2010 and our Pita Crisps were relaunched as well,” says Yaron Eliahu, owner of Danny’s Real Pita Bread. The company also launched a ‘modified atmosphere packet’ range, which allows it to continue to produce the pita bread with no preservatives or additives and with a 45-day shelf life. “The packet is attractive and produced to a very high quality, as is our bread. It gives the customer more flexibility with our products – great for boating, hiking or anywhere else you can not take your fridge with you.” To complement its pita bread offering, the company also launched falafel in 250g packets. “This great product is totally vegetarian and works very well as a meal solution with our natural pita bread. “The natural, healthy, dairy-free ingredients of Danny’s Real Pita Bread mean it not only tastes great, but it is good for you too! “The modified atmosphere packet range now reaches markets we have not served before,” explains Eliahu. Therefore the growth rate for this new range is very high in the first four months on the market. “Danny’s Real Pita Bread is the market leader in pita bread (34% market share – Nielsen Oct 2010),” he adds. “Our pita bread is a very versatile product that can be used as a sandwich and is great for BBQs – just stuff the pita bread with steak or sausages and you can walk around with your meal! Pita bread pizzas are also superb, using pita bread as a base. A lot of our pita bread products are used for kids’ lunches, so through school holidays we see a small drop in sales,” says Eliahu. “We are looking forward to launching more new products in the pita bread range and the crisp range,” he adds.

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A big year ahead Four broad trends predicted for 2011. By trina snow Trina Snow,

The festive season has been and gone for another year and hopefully the tills were ringing for the supermarket and retail grocery sector after a tough 2010. That said, our industry was the best performed of all the retail sectors, showing a small increase while most declined. Looking forward, the expected slow economic recovery should continue to support modest growth in sales. Things are likely to get better, but not necessarily dramatically better. I think 2011 is going to be a big year. New Zealand will host the Rugby World Cup, which will see an influx of tourists and visitors. Kiwis will also go to the polls, probably shortly after the World Cup, to elect the next Government. In our sector, NARGON is predicting four broad trends which will have an impact this year. Interest and advocacy groups will continue to call on the Government to regulate the supermarket industry more. We saw this quite clearly in 2010 with criticism of supermarket behaviour and pricing. In Britain and Australia, there have been a number of reports and proposed regulations, including setting up a supermarket ombudsman. In 2011, we can expect the level of scrutiny and criticism to increase, particularly in the run-up to the election. NARGON continues to argue that our industry in New Zealand is responsible and does not require additional regulations or red tape. For example, the efforts made to encourage people to choose re-usable shopping bags have been a significant success without the need to ban bags entirely or to place a tax on them. There has been a noticeable change in shoppers’ behaviour because they have been convinced of the benefits of change. This kind of industry- and consumer-driven change is more genuine and longerlasting than government rules and regulations. Consumers will continue to take a keen interest in the products they purchase. New Zealand consumers are very price-sensitive and always looking for discounts, but many are increasingly interested in what goes into their food and drink. There is growing interest in where the ingredients are from, where the product is made, animal welfare issues, nutritional information, allergy warnings and organic status. Stores will have to be able to cater for these increasingly discerning shoppers, as well as looking after those who are focused on price and value. Again, NARGON supports an industry-led response rather than regulations, which are often impossible to implement in a

executive director, real-world supermarket. NARGON. Parliament will this year finalise the most significant changes to New Zealand liquor laws in 20 years. The proposals include giving communities more power over licences, setting maximum licence hours, excluding dairies and convenience stores from holding off-licences, raising the off-licence drinking age to 20 and increasing the penalties for offences. Most of the media attention will focus on the drinking age debate which will be a free vote for most politicians.There will also be interest in whether any new provisions are added after Opposition parties said the bill did not go far enough. Senior Labour MP Lianne Dalziel said it missed the opportunity to crack down on supermarkets selling “dirt cheap” alcohol. While the package contains a number of welcome measures, NARGON has argued that the drinking age should not be split between on-licence and off-licence premises and that the Government should consider the behaviour of individual stores, rather than disallowing whole sectors from having the option to sell alcohol. Finally, banning tobacco displays is firmly back on the agenda after the Government spent a year and a half saying there is no evidence that such a measure would be effective. In somewhat of a surprise move, Cabinet appears to have lent its support to the Maori Affairs committee report into tobacco. It recommends a range of strict measures aimed at halving smoking by 2015 and turning New Zealand into a smoke-free nation by 2025.Those changes include banning tobacco displays, restricting the display of tobacco brand names and increasing instant fines for people selling to under-age purchasers. Despite all the signs pointing to the Government rapidly passing the report’s recommendations this year, NARGON urges politicians to consider each carefully and to implement only the ones which will help reduce tobacco-related harm without exposing our industry to excessive costs and risks. Bring on 2011!

february 2011 FMCG

What’s Hot NEW FROM MACKENZIE – TWO MORE GOOD REASONS TO ENJOY LUNCH LIKE IT USED TO BE   MacKenzie High Country bread is baked in the spirit and traditions of High Country New Zealand, where bread was handmade, generous in size and full of abundant goodness.  MacKenzie, with its distinctive brown paper bag packaging and generous loaves, has two new variants launching in February to reinvigorate the MacKenzie range and drive incremental sales:   • Frontier Linseed & Soy has been created with unique ingredients, including golden linseed, toasted sesame seeds and kibbled soy.   • Heartland Seeds & Barley is a generous loaf with a combination of quinoa, sunflower seeds & barley, for a delicious, wholesome taste.   Both new MacKenzie breads are available on shelf from 28th February 2011.

unique additions to the Vogel’s range of naturally healthy, low GI bread Chia & Toasted Sesame offers a natural plant source of Omega 3, fibre and essential nutrients, combined with the deliciously nutty flavour of toasted sesame seeds. Soft Mixed Grain is a softer form of our beloved Vogel’s Mixed Grain recipe. Still packed with delicious, nutritious grains, it’s a great way to enjoy the perfect sandwich.

For further details please call 0800 100 538

Get your slice of action with Garnier Pure and Pure Active

What’s Hot

The ‘Back to School’ period is the time of year in the Youth segment that sees the largest uplift in sales. After the success of the 2010 promotion for Pure and Pure Active, which led to growth in the franchise of 37.6%* (highest in the segment), Garnier is again running a ‘Back to School’ promotion, this time with prizes of Playstation Move – the latest “must have” for youth. Starting on the 7th of February, the promotion will have 8 weekly prize draws of a PS3 Console, Move Starter pack, 2 x Move Games + extra Move Controller! The final draw will be on the 29th of March, along with the major prize of a Sony 40” 3D TV, 4x Eyewear, Transmitter, 2x 3D Movie Titles, PS3 Console, Move Starter pack, extra Move Controller + 5x Move Games! A total prize pool of $13,362! To enter, consumers simply need to purchase any Garnier Pure or Pure Active products and send in the last 5 digits of the product barcode to 5888, or go to www.garnierpureactive.co.nz to enter and be in to WIN. With a full support plan including 4 weeks of TV, key magazines and banner advertising – along with point of sale including stickers on product, wobblers and floor stands – this is a great promotion to kick off the year. *Synovate AZTEC data – Quarter to 04/04/10 (Back to School period) value growth in TKA vs YA

FMCG FEBRUary 2011

What’s Hot Paseo Pure – Luxury without Compromise

Paseo Pure Luxury Toilet Tissue The Paseo Pure difference lies in the renewable fibres which are short and fine for ultimate softness, sensuality and luxury.

This dedication to excellence and New Zealand means Paseo Pure retailers will feel secure in the knowledge they are offering their customers quality, environmentally sensitive toilet paper. Paseo Pure Luxury Soft Facial Tissue The new collection of Paseo Pure facial tissues is quintessentially luxurious, featuring hypoallergenic and Shea butter infused varieties. Paseo Pure is the first facial tissue to incorporate Shea butter – an additive in leading moisture treatments – into a facial tissue to care for the delicate skin around the nose.

What’s Hot

Forget sacrificing softness for the environment; forget the scratchy, “eco” household tissue of the past. Meet the next generation in paper, Paseo Pure. Market leader of the toilet paper category, Cottonsoft has launched the new Paseo Pure range of facial, household and toilet tissue which merges premium quality with a genuine concern for the environment. Cottonsoft has grown market share through maintaining a commitment to delivering quality and innovation to New Zealanders. Paseo Pure, the latest addition to the Cottonsoft family, is backed by 25 years of market insight, the highest quality standards and proven success – as well as a $2 million campaign across television, print, mall, online advertising, in store demonstrations, and tissue sampling to launch the brand. Partner with Cottonsoft to trade up consumers to the underdeveloped premium tissue category.

Paseo Pure X-Wipes Strong Paper Towels The Cloth-strength Paseo Pure X-wipes feature the latest in wet-lock technology to absorb the messiest spills. With its super soak mechanism, Paseo Pure X-wipes are bound to be a winner with household shoppers across New Zealand. Don’t miss the unique opportunity to take advantage of the developing premium tissue market in New Zealand. The range will be available from mid February 2011. february 2011 FMCG

What’s Hot Venerdi Organic Gluten Free breads buns and pizzas are HOT! Why? Simply, because Venerdi is about Good Health, Good Nutrition, avoiding allergens – not only Gluten but also always Dairy and Soy Free. Venerdi uses the best quality organic ingredients, using time-honoured baking techniques to make the best nutritional quality Sourdough breads around. Venerdi breads are the best value because we don’t have middle men. We deal directly with our store customers cutting out merchandising costs leaving the customer with the best possible value and the best available quality. Supermarket customers deserve the choice of purchasing superior nutritional quality staple products at great prices. www.venerdi.co.nz

Double Phoenix Shao Xing Cooking Wine

What’s Hot

Chinese cooking wine is now a common ingredient in many Asian or fusion style recipes, but has been difficult to sell due to the liquor licensing act. Double Phoenix Shao Xing cooking wine contains 1.5% salt, which dissipates with cooking but prevents it being drunk as a standard wine. Therefore it can be sold within the Asian Food Section in store without the need for a liquor licence.

For more information on Double Phoenix Shao Xing Cooking Wine please contact: Oriental Merchant Pty Ltd Tel 0800 10 33 05 Fax 0800 10 33 11 Email: nzenquiries@oriental.com.au Website: www.oriental.com.au

FMCG FEBRUary 2011

Vaseline Aloe Fresh 375ml It’s all very well having perfect skin on your face but what about the rest of your body? Vaseline Aloe Fresh Hydrating Lotion, with aloe, cucumber and vitamin E, is a light, non greasy body lotion that provides the skin with a burst of hydration, leaving skin feeling smooth and refreshed. Remember to moisturise every day!

gs1

A single business number for New Zealand Are we globally connected? By Dr Peter stevens

You may have seen the recent call in newspapers by Rod Drury from Xero (the Kiwi online accounting software company) for the implementation of a Single Business Number (SBN) by the New Zealand Government for all business entities*. Drury advocated that having a common, unique business identifier would be a “key building block” for enabling electronic transactions between businesses, useful for identifying a business, automatically updating its address details, checking credit worthiness and automating order-to-cash transactions. His call was for the Government to settle on a Single Business Number to use instead of the myriad of other identifiers used in New Zealand currently (the GST number, IRD number, Companies Office ID etc, etc). Other countries – the Australian Business Number (ABN), the US Employer Identifier Number (EIN) already have this – why not us? Such a number could then be used easily by private sector businesses. As he says, “It seems crazy that a small business creates an invoice in its own accounting system with structured data, then flattens that data into a paper invoice, which is essentially a picture, and then the customer has to retype that invoice back into structured data in their accounting system.” I agree! And the Government seems to be listening to this call. Key agencies are doing policy work on how a SBN would work, what benefits accrue to whom, what the number could be and the privacy implications of using a single business ID across government. GS1 New Zealand has got involved in this, not necessarily to promote the idea of a SBN (despite there being considerable logic behind the call), but to stress that if a number was going to be rolled out, why do it locally? Why not do it globally? Let me explain. As GS1 members will know, global IDs for businesses have been around for many years.They are critical to many business transactions.The GS1 key which

Dr Peter Stevens, chief executive, GS1. Email: peter.stevens@gs1nz.org.

complements the Global Trade Item Number (GTIN = the ‘barcode number’) is the Global Location Number (GLN). GLNs are used routinely to identify businesses for: • the exchange of electronic purchase orders and invoices; • electronic catalogues (through GS1net, for example); • for directing goods to stores or warehouse locations (Advance Shipping Notes); and • for the exchange of key traceability information (source of food items, trans-shipment points), etc. It seems to us that the New Zealand Government should adopt a number that is globally understood, widely used by businesses globally already, has a known data structure that is supported in most enterprise software and has a lot of automated systems already in operation (GS1 members should type in their business name into http://www.gepir.org/ to see this in operation). Other governments have realised that this is sensible – the Indian government, for example, allows businesses to identify themselves either using their Indian Tax Number or a Global Location Number. What are the alternatives? • The Government ‘invents’ a new number? • Or (shock, horror) adopts the Australian Business Number? • Or re-purposes an existing number (eg, the GST number) which has a very specific meaning and is New Zealand-unique? These do not seem as logical or politically saleable as adopting the GLN. Let’s see how the discussion plays out. If you have comments to contribute on this topic, please email me: peter.stevens@gs1nz.org.

* See http://blog.xero.com/2010/10/single-businessnumber/

february 2011 FMCG

cate go r y c h e c k

What’s popular in

hand & foot care this season?

From best-selling lotions and creams to natural foot deodorisers, we found some interesting additions in this category.

ry skin is one of the leading skin problems yet less than 30% of New Zealand households purchase a hand and body product (Source – ACNielsen Dec 2010). “Given the harsh climate in New Zealand, it is imperative that we look after the skin on our body just as we do for our faces,” commented Anshika Grover,Vaseline brand manager. “Vaseline is New Zealand’s ‘number 1’ hand and body lotion (Source Aztec – MAT 26/12/10),” said Grover. Healthy skin naturally repairs itself. But as hands are constantly active and exposed to elements this natural process can be disrupted leading to cracked and rough skin. The regular use of hand and feet lotions is the best way to help prevent water loss and preserve a healthy skin-moisture balance. Vaseline soothing hand cream’s hydrating formula infuses skin with 34

FMCG FEBRUary 2011

intense moisturisers and sinks in within seconds yet lasts all day to promote the ideal environment that skin needs to repair itself. It contains glycerine, which instantly softens skin, as well as occlusives that help prevent moisture loss. The non-greasy formulation leaves an invisible protective shield on consumers’ hands to help lock in moisture. Also from Vaseline comes an intensive rescue hydrating foot cream – hypoallergenic for very dry skin and with AHA Complex for smoother skin. Busy feet are under constant pressure, leading to cracked rough skin. Vaseline hydrating foot cream softens skin on contact, it then deeply moisturises to promote the ideal environment for skin’s natural healing process to occur, reducing roughness within five days. And what is the Vaseline expert’s top tip for consumers?

Exfoliate hands and feet once a week – this will not only remove any dry skin but also boost circulation.

First aid for feet Early Australian aborigines used it to treat wounds and World War II soldiers packed it in their kits to keep foot fungus in the tropics at bay. It’s one of the most effective natural antifungals and antiseptics known to mankind: tea tree oil. The amazing properties of tea tree oil include antifungal, antiseptic, freshening, deodorising and soothing for minor wounds, cuts and scrapes. Bosisto’s Tea Tree Spray contains 100% premium grade tea tree oil in an aerosol can for easy application – for feet, knees or even around the home. Consumers will find this handy in the first aid cabinet, sports bag or car glove box. Did you know our feet contain over 250,000 sweat glands each?

h a nd & foot care

THE BREAKDOWN Current MAT to 02 January 2011 Total Hand & Body excl Baby $17.585m Value % Chg vs YA 9.4 Total Body Skincare $15.429m Value % Chg vs YA 11.8 Total Hand Skincare $2.156m Value % Chg vs YA -5.4 Total Foot Care $878,728 Value % Chg vs YA 18.9 * ACNielsen New Zealand ScanTrack (Databank)

with and

Kate Ritchie uses the Vaseline® cocoa butter range

Vaseline New Zealand’s favourite*

AND

It’s not surprising they can get a bit smelly, especially in summer. Bosisto’s Tea Tree Spray is terrific for freshening feet and treating the symptoms of tinea – a must-have for gym goers, hikers and sports enthusiasts. A quick spray inside running shoes, work boots or walking shoes gives them a fresh tea tree blast and helps kill bacteria.The Bosisto’s spray is available at RRP $20.99 for 100g from CS Company. Another novel addition in the hand and foot care category is Wartner, which is now stocked in most Progressive stores. “It is the leading home wart treatment,” said Kate Park, marketing manager – Arrow Pharmaceuticals. “Now is the time to stock up on Wartner,” adds Park. “In summer people are baring more skin, which means catching warts and treating more warts. Based on the same method as used by doctors, Wartner is easy to use.”

BOD

Y LOT

2 4-

-1

The new Vaseline® cocoa butter range includes a deep conditioning body lotion and a smoothing body butter enriched with cocoa and shea butters, helping keep skin soft and smooth. *Based on Aztec MAT 28-11-10

® keeping skin amazing Vaseline february 2011 FMCG 35 www.vaseline.co.nz

g rocer y b us ine ss

Are you missing online opportunities?

Tamara Rubanowski examines the latest business statistics and finds an award-winning website. The number of internet users is set to reach over two billion globally, but it seems few New Zealand businesses are taking full advantage of the online economy. Only 34% of New Zealand businesses own a website and only 20% sell products and services online, according to a recent MYOB Business Monitor survey. The survey of over 1000 New Zealand businesses across all economic sectors, conducted by Colmar Brunton, showed that businesses in the manufacturing sector were the fastest adopters of the internet, with 50% owning a business website, followed by retail and hospitality businesses on 48%. According to the survey, while the online adoption rates of the two countries are very similar – with 35% of businesses in Australia owning a website – New Zealand retailers are far outstripping their trans-Tasman counterparts, with only 36% of Australian retail businesses online. Will grocers missing the online bandwagon be able to grow in future, or is online grocery just a costly diversion? MYOB general manager Julian Smith says the results of the survey highlight an opportunity for Kiwi businesses to become more engaged in the global online economy – and for the whole country to make productivity gains, particularly in comparison to Australia. “We know businesses that have a website, and trade online, perform better – generating more revenue gains than businesses without a website,” says Smith. “When we look at ways we can boost the productivity of the whole economy – helping more businesses get online would achieve real results.” According to the Monitor, 44% of businesses with a website have more sales or orders in the pipeline (booked in the next three months), compared to just 30% of businesses that don’t operate online. Looking at the last 12 months, 37% of businesses with

FMCG february 2011

a website reported an increase in revenue, while only 28% of businesses without a website saw revenues rise. Smith says throughout the country, rates of online adoption are very similar, with the main centres only slightly higher than the rest of New Zealand. “Perhaps surprisingly for the highly-connected Auckland though, it is Christchurch that leads the way on online activity, with 37% of all businesses operating a website, followed by Auckland on 36%,” says Smith. “Wellington – despite being the seat of Government – is lagging behind, with only 31% of businesses owning a website.” However, there seems to be considerable difference in online activity by size of business. Small and medium enterprises in New Zealand, with 5-19 employees, are most active online, with 68% owning a website, while only 28% of sole traders have an online presence. More sophisticated online tools and trends are also yet to make significant inroads into business activity, with 14% of businesses using the rapid development of social media to support business aims. The survey, however, showed a marked generation gap in the use of social media, with 22% of business owners under 40 using social media tools to promote their business, compared to 11% of those in the over-40 age range.

featu re Australian businesses are slightly more aware of the benefits of social media, with around 18% using social media for business purposes. The survey also provided an insight into how Kiwi businesses used the internet, with: • 12% writing blogs or online newsletters to promote their business, • 14% using social media, • 22% advertising online, • 29% monitoring competitors online, • 35% conducting online research and monitoring industry trends. Smith says MYOB is focusing most of its NZ$90 million R&D investment fund on finding ways to get more businesses online and help them use the internet more productively. “New Zealand’s internet economy is an issue of national significance – one that needs to be addressed not only by individual businesses, but by Government, agencies and business leaders,” says Smith. “As the furthest flung OECD nation, this is an opportunity we could embrace that could provide immediate productive benefits to New Zealand. And without doubt, aiming to become one of the world’s most connected economies would provide a very significant advantage to Kiwi businesses of all kinds.” Online shopping services Progressive Enterprises has been offering online shopping through its Woolworths and Foodtown brands for the past 12 years. FMCG asked Bernadette Cornor at Progressive Enterprises how much traffic this shopping website is attracting. “The exact number of visitors is commercially sensitive, but we’re happy to say that we have thousands of visitors each week.” Cornor said www.countdown.co.nz is a comprehensive site that includes the latest mailer, specials of the week, a store locator, Smart Shopper videos, the Onecard site, and of course online shopping. “Within the Onecard site (our customer loyalty card) customers can check their points balance, choose how they want to hear from Countdown, and manage their personal details. By signing up to mySpecials, Onecard customers receive a weekly email offering tailored product specials based on what they have bought using their Onecard. This means that the specials are relevant to their needs – for example, if they buy dog food they’ll receive offers for discounted dog food, rather than the special on bird seed. The same Onecard purchasing data is used as a starting list of that customer’s favourites within the online store itself, to help people shop faster and smarter when they’re placing their order.” Countdown has also launched its Facebook page recently,

Only 34% of New Zealand businesses own a website and only 20% sell products and services online.

The Progressive Customer Engagement team with the ADMA awards. Front row L-R: Seema Lal (holding Gold award); Elizabeth Ryley, GM marketing & communications (holding Platinum award). Back row L-R: Amelia Rennie; Kirsty Malcolm; Andy Johnson; Shelley Fuller.

offering tips and recipes and ‘Facebook friend’ deals. It also responds to customers’ questions and feedback via Facebook. Cornor said: “So far, we have 3600 friends and counting!” The mySpecials email programme from Onecard was the winner of a 2010 CAANZ Gold Effie and numerous NZ Marketing Association awards early in 2010, as well as the Platinum Database Excellence Award in the 2010 US Direct Marketing Association’s National Center for Database Marketing Awards. It also collected a Gold Multichannel Marketing Award in the same awards ceremony – the only non-US winner amongst other winners. The US Direct Marketing Association and Direct awards honour organisations that engage customers using data and technology to improve the quality of their marketing programmes, generating measurable results. “We are delighted that our Onecard marketing strategy and communication programmes have been judged a world leader in database marketing,” said Elizabeth Ryley, Progressive Enterprises’ GM – marketing and communications. “It has been a great success for us, and more importantly, for our customers too,” she said.

february 2011 FMCG

g rocer y b us ine ss ‘Generate’ helps you create your own product catalogue

Shane Raymond, general manager - Image Net.

With just the click of a button, you can now create a pdf or MS Excel spreadsheet catalogue from your product images and information stored in Fetch, the digital library operated by Image Net. ‘Generate’ produces scannable barcode catalogues that are ideal for suppliers and very useful for logistic operations for warehouse staff, for example. Many suppliers use a sales agent such as an SMA and with this clever tool a sales broker can have their entire portfolio produced in just one catalogue. FMCG asked Shane Raymond, general manager at Image Net, where the concept for this fantastic tool came from.

‘Generate’ produces scannable barcode catalogues that are ideal for suppliers.

“Last year I was visiting one of our clients who showed me this beautifully produced catalogue. It was all fresh and new and printed at a huge expense. Well, the product catalogue had just landed into this supplier’s premises, but the person simply got the catalogue and ripped it up and threw it in the bin. It was out of date almost the moment it landed. So I thought – there has to be a better way. Hence the development of ‘Generate’.” With ‘Generate’ you have the power to choose what products are displayed in the catalogue – it’s quick, simple and easy to use and being an online application it means there are no more expensive printed copies which can be obsolete – due to packaging or pricing updates – within days of being produced. Information fields displayed in the catalogue can include: • image preview • full product title, brand and category name • supplier and retailer codes • barcodes for pallet and shippers and pricing. With ‘Generate’, you can print paper-based catalogues or save and distribute the digital file. This is an easy-to-use productivity tool that can free up a significant amount of time and money. Contact Image Net now for further details! l

FMCG FEBRUary 2011

g rocer y busi n ess New biodegradable plastic made from yeast and plant oils A strong, highly ductile bioplastic can be produced using yeast and one of natureâ&#x20AC;&#x2122;s simplest building blocks: fatty acids of plant oils, reports the Journal of the American Chemical Society. The method was developed by Dr Richard Gross, professor of chemical and biological science at Polytechnic Institute of New York University. Like all plastics, the new material is a polymer â&#x20AC;&#x201D; a large molecule comprised of smaller, repeating units called monomers. In this case, the monomer itself is relatively new. The units are called omega-hydroxyfatty acids, and when strung together to form a polymer, they can produce a bio-friendly plastic. Until now, omega-hydroxyfatty acids were difficult and expensive to produce using traditional methods, prohibiting their widespread use. Gross produced the monomer in a first-of-its-kind fermentation process, a fairly quick, low-cost method. The monomer is then polymerized to form a uniquely ductile, strong natural plastic that biodegrades completely in soil. Gross and his team devised a new way to produce these monomers by using a genetically modified strain of a yeast that lives harmlessly in humans and animals. The engineered yeast

is capable of converting fatty acids of plant oils into large quantities of omegahydroxyfatty acids. When polymerized, the new material may be a suitable substitute for petroleum derived plastics such as polyethylene for uses such as disposable gloves, multilayer food packaging films, and films for ice, rubbish, garments, produce bags and more. The new bioplastic is highly resistant to moisture, which is an important improvement over currently sold bioplastics such as polylactic acid and starch-based plastics. l

february 2011 FMCG

g rocer y b us ine ss Futuristic packaging has novel eye candy At the world’s largest consumer technology tradeshow, CES 2011 in Las Vegas, Fulton Innovation demonstrated wireless charging technology for new packaging, which uses induction power to create cereal boxes which can illuminate in stages to create an eye-catching effect. The technology can also be used to power toys and other items to give a battery-free demonstration. But wait there is more, the company also

had a can of soup which had a heating coil built in to the packaging. Placed on its specially designed kitchen surface, the soup will cook in the pack, as per the manufacturer’s instructions. No more pots to wash or microwaving, just hot soup. The innovative kitchen environment apparently also has the ability to communicate with other devices, including blenders and cooking equipment, to cook food based on a pre-defined recipe.. l

Goodman Fielder reveals new head office premises in Auckland Investment in research and development is a top priority for Goodman Fielder, Australasia’s largest food company, which officially opened its new head office facility in Auckland recently. The new premises in Nelson Street was revealed after the consolidation of a number of Goodman Fielder offices that were previously located at separate sites, including the organisation’s research and development facility. Peter Reidie, managing director Dairy & Meats, says the modern head office and new state-of-the-art test kitchen facilities (“culinary centre”) reflect the organisation’s continual commitment to providing New Zealanders with the highest-quality products. “New Zealand represents a significant part of Goodman Fielder Australasia-wide generating a third of all revenue, and this is why we’ve invested in the new building which brings together three different office locations, and the new culinary centre of which an entire floor is focused

on the research and development of Goodman Fielder products,” explains Reidie. “It’s a great building for our people to work in, but also demonstrates our commitment to New Zealand.” Reidie says the new culinary centre services the needs of all Goodman Fielder’s New Zealand businesses, including fresh dairy and meats, fresh baking and home ingredients, and Champion baking ingredients. Goodman Fielder employs more than 3000 staff nationwide, and the new building is now home to more than 350 employees. As a means of connecting staff to their new office, Goodman Fielder undertook an innovative project for its staff that involved the staff painting a three panel mural. Young Kiwi artist Stacey Roper worked with the Goodman Fielder team to design a mural that best reflected the organisation, its products and its people. Head office staff all took part in the painting of the mural which was unveiled at the official opening. Goodman Fielder is Australasia’s largest food company and has products that cover every meal occasion, including breakfast, lunch, dinner and snacks. The company’s iconic household brands include Quality Bakers, Vogel’s, MacKenzie, Meadow Fresh, Molenberg, Brooks Deli, Puhoi Valley, Bouton d’or, Kiwi, Hutton’s, Tararua, Ernest Adams, Freya’s, Edmonds and Champion. l Roger Gray, managing director Quality Bakers NZ; Peter Reidie, managing director Dairy & Meats; Bruce Peden, director Champion Baking Ingredients in front of the mural painted by Goodman Fielder employees and local artist Stacey Roper.

FMCG february 2011

New CEO for Meadow Mushrooms Meadow Mushrooms has announced that John Barnes (pictured), currently group manager fresh operations, has been appointed to succeed Roger Young as chief executive, effective 1st April 2011. John Barnes has extensive experience in the commercial mushroom industry in New Zealand and England, with management roles in spawn production, compost production, growing, harvesting and packing. He has held a number of key positions since joining Meadow Mushrooms in April 2003 and is well placed to lead the company following the major expansion and redevelopment in Canterbury, said Philip Burdon, chairman of the board of Meadow Mushrooms. Canterbury-based Meadow Mushrooms is undergoing an extensive $45-million expansion at its production facilities at Norwood and Wilmers Road on the outskirts of Christchurch. Meadow Mushrooms will be one of the largest employers in the region. The business was established in Cyprus in 1968 by well-known businessman and former senior politician Philip Burdon and his business partner Roger Giles. Both men invested $17,000 in 1970 in the New Zealand company, which has since self-funded its own growth. Staff numbers have grown from 11 in 1970 to a labour force of more than 500 today, making the company the largest producer of mushrooms in New Zealand and the second largest in Australasia. l

Regional CEO appointment for Heinz Wattie’s MD The regional role of Heinz Wattie’s managing director Nigel Comer (pictured) has been extended with his appointment as managing director of Heinz Australia and regional CEO of Australia, New Zealand and Japan for HJ Heinz. In addition to these new responsibilities, Comer will retain responsibility for Korea and Papua New Guinea. Comer will relocate to Melbourne. His promotion was announced by Heinz chairman, president and CEO Bill Johnson as part of the realignment of Heinz leadership in Asia Pacific. Johnson said the appointment was a reflection of the dedicated contribution and strong leadership that Comer had provided at Heinz Wattie’s in the past nine years as MD: “Under his leadership Wattie’s has consistently achieved growth and the Wattie’s brand has enhanced its standing as New Zealand’s number-one brand.” The New Zealand leadership team, with Michael Gibson as chief operating officer, will continue to report to Comer. Gibson’s appointment as COO was made in April 2010 to provide additional capacity at the time Comer took a wider regional role. Comer’s promotion follows a number of recent appointments for New Zealand executives to global Heinz responsibilities, including Mike Pretty’s appointment as vice president Global Ketchup, Health & Wellness and Marketing. Comer has been part of the Wattie’s business for more than 30 years and has previously held senior management positions in former divisions of the company. He has held the senior sales and marketing positions for the business in New Zealand and Australia, playing a leading role in developing Heinz Wattie’s exports and consolidating manufacturing capabilities from across the region into the company’s Hawke’s Bay plants. Comer has overseen a remarkable period of sustained growth and development right across the Wattie’s business. Aside from the growth in Wattie’s branded products, driven by innovation, 56% of the company’s total production is now exported, generating significant export earnings for New Zealand. This is in contrast to the general trend in the New Zealand food industry where 75% of the products with which Wattie’s competes are now imported. l february 2011 FMCG

g rocer y b us ine ss Butchery squad named for trans-Tasman test match New Zealand’s 10 best butchers have been named to trial for the inaugural trans-Tasman test match. More than 30 nominations have been narrowed down to 10 who will compete in the trial in February for the five places available. On March 25, five of New Zealand’s best will face off against the top Australian butchers for the bragging rights in the first-ever contest, sponsored by Beef + Lamb New Zealand and Meat & Livestock Australia and organised by Retail Meat New Zealand. Retail Meat New Zealand manager Fiona Greig says the event has attracted huge interest from the industry and is a great opportunity for our butchers to show their skill. “Finding the top 10 was a difficult task; the quality of the nominees was very high. It’s a great sign for the New Zealand butchery scene,” says Greig. The full New Zealand squad selected for the trial is as follows: • Paul Christian, Pak’nSave Royal Oak

• Peter Martin, Mad Butcher Onehunga • David Porter, Harmony Foods • Jamie Smith, The Butcher’s Block • Calum Sutherland, New World West End • Ben van der Hoeven, Magills Butchery • Bruce van der Net, Pak’nSave Henderson • Marcus Waldman, Mad Butcher Palmerston North • Cameron Webb, Progressive Enterprises • Corey Winder, Ashby’s Butchery Christchurch The final five will be selected by Todd Heller, the team manager. Heller is the founder of Hellers, one of the industry’s leading brands, and a stalwart of the New Zealand meat industry. l

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Storelink – 3M New Zealand’s new national grocery channel partner 3M New Zealand has streamlined its grocery distribution operation and announced it is now working with one national agency, Storelink. Previously 3M worked with three independent grocery agents covering the different regions, but partnering with Storelink provides 3M with greater efficiencies and improved customer services on a national basis. Angie Smith, 3M national sales manager consumer and office, says 3M’s global objective is to double its homecare business internationally by 2015. “We set an aggressive global target for our homecare business and in order to achieve similar results locally we wanted to ensure we partnered with world-class representatives,” says Smith. “3M embarked on a project earlier this year called ‘Project Continuous Improvement’ in recognition of the importance of our grocery channel. Our intention was to partner with a single agency which could provide our grocery customers with service excellence and maximise on growth opportunities. “We were confident Storelink could provide us with a strong infrastructure to manage our valued grocery clients

with the service levels and frequency they require. Storelink was selected on the strength of the service they already provide to 3M New Zealand as our merchandisers in the Mass / Hardware channel. Most importantly we share similar values, and this is critical to 3M.” Storelink managing director Ken Hewitt comments: “The Storelink team is extremely excited and proud to now have an even greater association with 3M New Zealand. “We have recently worked with 3M management to provide surety of service for 3M’s grocery customers in our submission to increase the already existing business relationship. “Our general manager Brendon Korner will be working closely with Angie Smith from 3M to enhance 3M’s already successful product portfolio in grocery outlets. “In addition, our team of 300 plus will be supporting the entire 3M grocery team in achieving its global objective.” Storelink will provide 3M with national sales and merchandising support (full key accounts as well as field sales and merchandising). Storelink will also be responsible for the administration of the grocery channel as well as for managing promotional effectiveness. Timing for the transition to Storelink has been underway since November in the North Island and in the South Island the transition commenced from 1 January 2011. l

february 2011 FMCG

g rocer y b us ine ss New developments in refrigeration There are only a few manufacturers of commercial refrigeration left in New Zealand. McAlpine Hussmann is one that has survived and is thriving with two factories: a specialty manufacturing facility based in Tauranga and an assembly operation in Auckland. Despite the ever-increasing trend of imported products, McAlpine Hussmann continues its long-standing tradition of designing and manufacturing refrigerated and hot food display cabinets to meet the needs of supermarket owners in New Zealand. Manufacturing in New Zealand has distinct advantages for the involvement of customers, designers and engineers in the process. The McAlpine Hussmann specialty manufacturing factory in Tauranga works closely with local supermarket owners to customise cabinets to their particular needs. Examples of this include reducing the height of serve-overs to better suit staff serving customers, and designing cabinets for particular merchandising opportunities of specialty or convenience products. During 2010 McAlpine Hussmann continued with its development of cabinets, almost always carrying this out in conjunction with store owners and head office staff of various customers. This constant drive to innovate has produced cabinets not only for the New Zealand market but also for overseas markets. This is something McAlpine Hussmann is extremely proud of and it gives the company a chance to showcase its capability on an international stage. One example of a cabinet that has seen a New Zealand innovation is the serve-over with the pedestal lighting effect. This cabinet has been reconfigured for New Zealand conditions, where deli products are exposed to refrigerated air for longer times than in Europe and where drying has been an issue with some cabinets imported from overseas. The coils and fan systems design has been reconfigured to ensure maximum performance in a typical New Zealand store and yet retains a modern look. Specialist cabinets for supermarket operators have also been developed where the McAlpine Hussmann designers have started with just a sketch and worked up cabinets that meet all the New Zealand electrical and refrigeration requirements. The two cabinets in this development are currently in final design and manufacture, prior to testing in the McAlpine Hussmann test room. They will be available early this year. To showcase McAlpine Hussmann’s designing capability, the September 2010 Foodstuffs Expo in Palmerston North

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Manufacturing in New Zealand has distinct advantages for the involvement of customers, designers and engineers in the process. featured in-house designers on the McAlpine Hussmann stand, working up modifications to existing cabinets and sketching out new cabinets. There was a considerable degree of interest in this facet of refrigerated and hot food display cabinet supply to the local market. The designers were not working to a fixed product catalogue, rather using the existing product or concept as a guide to add specific customer modifications. It was a good example of how this well-established New Zealand company is evolving as the refrigeration market changes and is still able to meet the continuing demands of a fast moving grocery market place. McAlpine Hussmann also participates internationally, using Hussmann’s various global case platforms to customise for specific market conditions. The company’s staff travel frequently to various parts of the globe to modify and customise to meet the unique needs of the New Zealand market. McAlpine Hussmann is well positioned to offer an extensive range of display equipment for New Zealand’s supermarket industry, said McAlpine Hussmann’s key account manager – Foodstuffs, Jack Rae. l

Fuel-powered forklifts can be dangerous A serious health and safety issue has been raised about forklift use in poorly ventilated areas. The Department of Labour visited major hirers and sellers of forklifts recently to raise awareness of the risk of carbon monoxide poisoning when fuel-powered forklifts are used in poorly ventilated areas like cool stores. “Carbon monoxide can kill without warning,” said the Department’s chief adviser Health & Safety, Dr Geraint Emrys. “The gas can quickly build up when fuel-powered forklifts are used in confined spaces or where there is poor ventilation. People can be overcome without realising they have been exposed to it. “Carbon monoxide is the most common form of poisoning in New Zealand workplaces and in recent years there have been a number of cases where groups of employees have suffered from the build up of the gas in warehouses and cool stores.” Those selling and hiring out forklifts have a legal responsibility to tell their customers about the dangers of carbon monoxide. “If customers intend to use their forklifts in enclosed or poorly ventilated spaces then the first option hirers and sellers should suggest is an electric-powered forklift. This eliminates any risk of poisoning,” Dr Emrys said. “If this isn’t possible and a fuel-powered forklift is to be used, the customer should be informed that they will need to put in place a safety plan to prevent poisoning. This plan should cover things like information and training for staff, restricting use of the forklift in poorly ventilated areas, keeping them tuned to reduce emissions and installing carbon monoxide alarms.” The Department has put together a series of factsheets on fuel-powered forklifts which is available on www.osh.govt.nz/order/catalogue/forklifts-co.shtml. l

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Thirsty

for something new?

ith the height of summer comes an increased demand for cool thirst quenchers. Consumers consider refreshing flavours, ‘fridge door fit’ and price point, while a new range of drinks for cafestyle entertaining at home emerges in the chilled beverage category.

Bundaberg’s boutique flavours Bundaberg Brewed Drinks has just launched a cafe range, which includes Bundaberg Guava, Bundaberg Blood Orange and Bundaberg Pink Grapefruit.This range was launched in response to a trend towards cafe lifestyles and an increasing trend towards at-home entertaining. The new flavours, Bundaberg Guava, Bundaberg Blood Orange and Bundaberg Pink Grapefruit, are unique tastes, which have been created to allow consumers to enjoy the “cafe experience and bring it home with them”, according to John McLean, chief executive – Bundaberg. The new range has no artificial flavours or colours, allowing the natural colour of the guava, blood orange and pink grapefruit to shine through the clear 340ml bottles.The beverages feature 5% real fruit juice and are available in four packs.The new range has been rolled out to supermarkets, cafes and convenience outlets across Australia and New Zealand. McLean said that crafting a cafe range to appeal to this market was an easy extension for the company. 46

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All three new flavours are performing well with positive responses during sampling activities in shopping centres. McLean told FMCG that the demand is exceeding expectations. “We’ve really noticed a growing trend for consumers to entertain more at home. Many say this is a reaction to the global economic crisis or other major events. People are cutting back but also seeking out some simple luxuries they can enjoy at home. It really is like they want to take home that special experience enjoyed in a cafe or restaurant” McLean said. “We have just launched our fully integrated summer marketing campaign which includes TV, sampling, promotional vehicles, POS and on-pack consumer promotions for both Bundaberg Ginger Beer and Bundaberg Lemon, Lime & Bitters.” Bundaberg Brewed Drinks distributes a wide range of beverages in supermarkets, including Australia and New Zealand’s number one ginger beer: Bundaberg Ginger Beer. Bundaberg Brewed Drinks also offers many other variants, including the popular Bundaberg Lemon Lime & Bitters and diet variants on the bestselling flavours.

Old-fashioned lemonade gets a make-over Charlie’s Honest Quenchers are an old-fashioned lemonade style drink, just like your gran used to make. “No juice concentrates. Nothing artificial.”

cold beverages New Quenchers in cartons are available now in lemonade, mango orange and feijoa variants. The cartons slide nicely into a chilly bin or fridge, they are lightweight and don’t need to be refrigerated until opened. Charlie’s offers a range of drinks including Honest Juices, Honest Quenchers, Honest Smoothies and an Honest Water, which utilises an eco-bottle made from plants. Charlie’s is one of New Zealand’s largest fruit juice companies and was established in 1999 by childhood mates Marc Ellis, Stefan Lepionka and Simon Neal. Charlie’s Juicy Lucy is a new chilled orange juice delivered in 2L (milk bottle style) bottles. It is available in ‘Original Style OJ’ and ‘Pulp Free OJ’ variants. Unlike many chilled juices, Juicy Lucy is preservative free. “Juicy Lucy has done remarkably well,” says Ron Curteis, Charlie’s marketing & export manager. “We have focused our marketing efforts on consumer in-store sampling. Once consumers taste Juicy Lucy they are hooked, so this method has worked very well for us. We are constantly working on bringing new products, flavours and innovation to the marketplace through our current and potentially new brands. “We have recently updated our Phoenix Organic Juice label, which is performing very well in 275ml and 750ml sizes,” adds Curteis.

Rectangular bottles optimise storage space Ocean Spray supplies a range of cranberry and grapefruit drinks to supermarkets that include Cranberry Classic, Cranberry Light, Raspberry Cranberry, Cranberry Pomegranate, Cranberry Blackcurrant and Ruby Red Grapefruit. As well as this range it also has diversified into 1L Tetra products that include Cranberry, Cranberry Light and Red Grapefruit. A recent addition to the Ocean

Spray range is the refreshing new flavour, Ruby Red & Pomegranate. “The new product is a combination of the naturally sweet ruby red grapefruit with the characteristically refreshing pomegranate. Together these make a unique and delicious drink,” says Anne-Maree Ogilvie, commercial manager Australia & New Zealand. “The Total Ambient Drinks category is worth almost $31 million and is in slight decline at -2.1% whilst Total Cranberry (including Blends) which accounts for the largest share at 32.2% is in growth at 1.9% (Aztec MAT 19/12/10). “The growth of the Cranberry and Cranberry blend range has been driven by new product development and we will continue to innovate to increase our share of the market.” There also appears to be an increased awareness of the health properties of the superfruits – cranberry, pomegranate and blueberry – with recent expansion of these fruits into other categories. The brand new look of the Ocean Spray 1.5L and 1L PET range was launched in November 2010. Eager to deliver a new bottle shape to fit consumers’ needs, Ocean Spray conducted extensive consumer research into the perfect bottle and found that rectangular beats round. The new rectangular bottle is easier to grip than the previous round bottle, allowing consumers to pour their favourite Ocean Spray drink with just one hand. It will also fit easily into most fridge doors and being rectangular means that the bottles can optimise storage space. Ocean Spray’s new look is on the exterior only. Consumers can expect the same crisp, refreshing Ocean Spray taste they love in every bottle. Now, it will simply be easier to store, pour and enjoy. The launch was supported by full marketing communications activity including television and in-store activity.

THE BREAKDOWN Current MAT to 2 January 2011 Total chilled beverages: $51.114m Value % Chg vs YA -3.8 Total fruit juice: $31.160m Value % Chg vs YA -8.3 Total fresh flavoured milk: $19.954m Value % Chg vs YA 4.2 * ACNielsen New Zealand ScanTrack (Databank)

Zero sugar A new concept developed here in New Zealand by the Healthy Beverage Company is zerowater, a flavoured water that contains neither sugar nor artificial sweeteners. Zerowater uses a new 100% natural sweetener called stevia, which is also carbohydrate free, so consumers can enjoy the taste and not worry about their waistline. “In comparison, other flavoured waters can contain around 17 grams of sugar,” says senior brand manager Sahra Cliffe. Zerowater also breaks the traditional expectations of bottled water with an all-new slimline, 800ml bottle. Best of all, the plastic bottle is BPA free, which means zero chemicals leaching out from the bottle into the environment.

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“Zerowater is owned and manufactured right here in New Zealand. It is bottled at source from a beautiful tranquil location renowned for being one of the best, cleanest natural springs in New Zealand,” says Cliffe. The range comes in four variants: Exotic Berry, Mandarin Twist, Lemon and Lime (new) and Natural Spring (unflavoured).

New Goji Berry, new look Baker Halls Fruit Syrups are available in 15 skus on supermarket shelves nationwide.Thirteen flavours under the brand segments Original (Lemon & Barley, Orange & Barley, Blackcurrant, Lime), Low-Cal (Lemon & Barley, Orange & Barley, Blackcurrant, Lime) and Premium (Apple & Pomegranate, Blackcurrant 48

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& Goji Berry, Cranberry & Blackcurrant, Lemon Lime & Bitters, Mango & Passionfruit). There is also an extra-value 2-litre option (available in Lemon & Barley and Orange & Barley). The Blackcurrant range – Original and Low-Cal – were reformulated to boost flavour and soft-launched in Q4 2010. Baker Halls has also introduced a fruit first in the cold beverage category – Blackcurrant & Goji Berry. Goji Berry is a superfruit (similar to Acai). Blackcurrant & Goji Berry is a popular taste amongst shoppers, converting into purchases after trial and achieving good ranging, commented Baker Halls brand manager Natalie Dorn. “Not only is Baker Halls squeezing more flavour into its current range and introducing a new superfruit flavour, in 2011 we will be re-launching the Baker Halls brand with a fresh eye-catching look and feel – aimed at enticing new shoppers to the Baker Halls brand and the cordial category. “We’ll continue to flex our flavour innovation muscle – Baker Halls brand, flavour and usage innovation is all about attracting new shoppers, increasing the number of cordial consumption occasions and ultimately driving cordial category growth.” Seasonality strongly affects the swing of flavour preference and consumer purchase. “What we witness within Baker Halls, with consumers moving towards the crisp citrus flavours in summer through to the darker berry flavours in winter, is reflected across the category,” said Dorn. Dorn explained:“Over the warmer months, sales of citrus variants such as Lime or Lemon & Barley top the category with 66% volume share and 59% value share on average (Spring/

Summer 09/10, Nielsen). “Sales peak for the Blackcurrant variants over the cooler months with volume at 36% of the cordial market and value at 41.5% share (Autumn/ Winter 2010, Nielsen). “While all our products contain Vitamin C and several others have either antioxidants or other vitamins, blackcurrant is especially popular during winter as consumers seek out products with added benefits to boost their health – it’s a well-known fruit for its potent Vitamin C properties, and enjoyable either hot or cold. “Baker Halls is the market leader within the cordial beverage segment, owning 29% value share of a $18.9m category (MAT, 5th Dec 2010, Nielsen),” says Dorn. Currently only 35% of New Zealand households purchase cordials (Homescan data, July 2010) – but Baker Halls has ambitious plans including further brand innovation.

East meets West Oriental Merchant currently supplies YEO’s Southeast Asian drinks such as Lychee Drink, Chrysanthemum Tea, Ice Lemon Tea and also Soy Bean in 250ml tetra brick and 300ml single serve cans. From the same supplier comes Yoosh, a range of refreshing aloe vera drinks that contain real aloe vera and a touch of honey for a fresh fruity taste

Did you know . . . Our body consists of 60-75% liquid. Dehydration is linked to depressed mood, fatigue and a narrowing of the blood vessels (vasoconstriction). Dehydration is also one of the main causes of mental and physical travel fatigue.

cold beverages

– in 500ml and 1.5 litre PET bottles. Del Monte tropical juice drinks such as Mango, Pineapple Crush and Four Seasons tropical mix come in 250ml bullet tins; Chaokoh Coconut Juice with pulp in 350ml cans; and Dr Pepper – the authentic American cult drink in 355ml cans. “The Del Monte drinks were only just launched in the last 14 months into supermarkets,” comments Chris Hutton NZ manager - Oriental Merchant. “The Pineapple Crush and Mango drinks are popular with the Caucasian market but the growing Philippino market know and enjoy the Four Seasons drink, thus in certain regions this flavour outsells the other two. Sales have been better than expected during winter, which has led to some stock issues at the start of summer,” says Hutton. “Cold beverages are very popular in Asia and many are very unique compared to what has been available in Australasia. We are always offered new drinks to launch but we must research the New Zealand market fully to ensure not only the fit for the Kiwi palate but also compliance as many Asian drinks do not meet FSANZ strict additive requirements in colours and flavours.”

Aloe, Aloe! Good things do not only come in small packages, say the distributors of the two new big bottles of Rejuva aloe drinks. Since the launch of their 500ml bottles these refreshing drinks have gained a strong loyal following and they can now be purchased nationwide in a large economical family-friendly 1.5L bottle. Most people have heard about the health-giving properties of aloe vera – healing and soothing for the skin and improving digestion, but it’s not usually something you’d expect to find at your local supermarket. And even though there are other choices

with the benefits of aloe vera, they don’t contain the generous and therapeutic 41% of pure aloe vera, with real gel chips that you get in a Rejuva aloe drink. Rejuva began with a quest to track-down a selection of healthy, functional, high-quality ingredients from across the world. But it wasn’t enough to just source the ingredients. The Auckland-based product development team at Rejuva likes to say they “make the good stuff taste good”. On its own aloe vera is slightly bitter, so Rejuva worked on blending delicious, natural ingredients to retain a high percentage of aloe vera while creating a fruity, aromatic taste, plus a drink with exceptional mouth-feel! Rejuva Pomegranate with Aloe includes pomegranate, a scientifically proven superfood, rich in healthsupporting antioxidants. The mix of fruity pomegranate juice and aloe gel chips creates a summery drinking experience with hints of melon and tropical fruits.

picked up by convenience and food stores, with everyone trying to ‘keep up with the Joneses’. The distinctive packaging features constantly changing labels submitted by consumers. New Zealand consumers can go online to www.jonessodas.com to submit their photo. If Jones Soda like it, they might use it for one of their labels! The more unusual and quirky the better. The vibrant eye-catching bottles make Jones a perfect non-alcoholic party drink.

Keep up with the Joneses After huge success in the US, Jones Soda launched in New Zealand at the Auckland Food Show in July 2010. Jones Soda only uses pure cane sugar and recyclable glass bottles. Jones Soda is now gaining momentum with eight amazing flavours including Bubblegum and Cream Soda. A surprising number of stores are reordering the Root Beer more heavily than other flavours even though the taste is very different from most sodas, said Paula Carruthers, sales and marketing director – Foodtrenz. With humble beginnings in the US in 1996, Jones Soda has now become the drink of cool – with extreme sport sponsorship and a unique product offering; a soda with a great taste and a stylish look. Jones Soda began in skate, surf and snowboarding shops. Soon after, it was february 2011 FMCG

Chill out! What’s cool and who stands out in the ice cream category this season? We found premium ice creams and ice-blocks with real fruit that will keep your customers coming back for more. This summer was choc-a-block full of surprises. Who would have thought that David Hasselhoff would be appearing at popular New Zealand beaches – “Baywatch style” – to hand out Splice ice-blocks to happy punters? The novel campaign created huge interest in the media and more than just a few sales of ice-blocks. In order to boost the Streets refreshment portfolio in the out of home ice cream market, Streets launched Splice Real Fruits during November 2010. Splice Real Fruits comes in both an Orange and a

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Strawberry variant. Streets Splice Real Fruits allows consumers to feel and taste the deliciousness of real fruits in iceblock format. It is made with real fruit juice blended with fruit puree to give a real fruit-like texture. Splice Real Fruits is targeted at consumers who enjoy fruit they can see and fruit they can taste. “More exciting innovation is set to come for the Splice brand in the future,” says Leyden Tolhurst, assistant category manager, Unilever New Zealand. Streets Ice Cream has been a New

Zealand favourite since 1994. The Streets range currently includes each of the following brands – Magnum, Cornetto, Splice, Calippo, Paddle Pop and Bubble O Bill. The grocery Multipack Ice Cream category has recently experienced a strong year of growth, recording +9.0% (Aztec MAT to 26/12/10). This result was driven by Streets which recorded +13.0%. Streets currently has a grocery multipack market share of 27.8% (Aztec MAT to 26/12/10). The strength of the category can be partly contributed to the launch of Magnum Gold in May, 2010. During May, the Magnum Gold Multipack sku recorded a scan dollar share for period 6, 2010 of 8.2% – the highest ever share recorded by a Magnum sku. Kiwis scream for ice cream We also learned this summer that New Zealanders are among the biggest fans of ice cream in the world, with ice cream and ice-blocks accounting for about $1 of every $44 New Zealand households spend on food. According to the New Zealand Ice Cream Manufacturers Association, New Zealanders are among the

highest per capita consumers of ice cream in the world, coming in behind the US. In January, Statistics New Zealand published figures on how ice cream prices have changed since the 1950s when they were introduced to the CPI basket of goods. In 2010 the average price for a tub was around $5.40, compared with an average price of 85 cents in 1975 and $2.10 in 1981. Rising star Despite challenging economical times, price seems to be no barrier for those die-hard lovers of premium ice creams and sorbets. Now moving into its fourth year, premium ice cream brand Kohu Road continues to defy gravity and naysayers alike with relentless growth across Australasia. Kohu Road sales for Christmas 2010 grew by over 200% from December 2009. “Our new Kohu Road range of four sorbets launched in October last year and has had a fantastic response. The four flavours available are mango, passionfruit, strawberry and chocolate,” says Kohu Road’s ice cream maker Greg Hall. “We are always reviewing our range

and working on new flavours of ice cream and sorbet to launch. We are planning to launch a couple of new flavours in the next few months,” reveals Hall. So what do the experts at Kohu Road predict in terms of consumer trends in this category? “Consumers continue their migration to simple, clean additive-free foods, displaying an appetite for only the cheapest or most expensive products,” says Hall. Kohu Road’s production facility is also growing well with a brand new store about to open offering ice cream tastings, creamery tours, fine tea and espresso, cakes and lunch. Kohu Road ice cream and sorbets are now in supermarkets across New Zealand, but also available in Farro Fresh, Moore Wilson and selected specialty outlets. l

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Cookie Time’s award success Innovation and an entrepreneurial passion for challenging the norm to fuel global growth aspirations have seen Cookie Time take out a prestigious Champion Canterbury Business Award. Cookie Time was announced the winner of the medium/ large enterprise Champion Producer/Manufacturer Award at a ceremony in Christchurch recently. The Champion Canterbury Awards recognise business excellence, passion and success in New Zealand. About 130 entrants competed in eight categories, including producermanufacturer, service, retail, charity and safety. Cookie Time’s win comes on the back of the recent launch of a high-tech Cookie Bar retail store in Queenstown, plus the successful launch of a licensed health food bar into the US earlier this year. The NOW (No Opportunity Wasted) Bar is a partnership with ex-pat New Zealander and international TV star Phil Keoghan. Lincoln Booth, general manager – Cookie Time, says the win is a great endorsement of Cookie Time’s commitment to innovation and growth. “At Cookie Time, we set the sails high. We’ve got big aspirations and we give things a go. And, more importantly, we’ve got a great team around us that get stuck in and get things done. Behind the management team, we have another 200 people who help manufacture our products and make things happen on a daily basis, and I am immensely proud of what we achieve together. “Taking on the US market with a Kiwi health bar is something many said couldn’t be done. But we took on the challenge, did things a bit differently and we’ve achieved that goal.” Cookie Time is on a growth trajectory, with continuous

ongoing new product development and a host of opportunities for new channels and markets in play. “The Queenstown Cookie Bar is another example of a big idea that has come to fruition. It’s a great space, jam-packed with innovations – from the animatronic Cookie Muncher with Lincoln Booth, general manager – Cookie Time. unexpected sound effects, through to an amazing cookie menu, plus interactive Apple screens,” Booth says. Cookie Time last year won another prestigious business award with innovation as part of the judging criteria, taking the overall Grand Prize at the Grocery Retailers’ Association National Supplier Awards. The Grocery Retailers’ Association (NARGON) has over 500 retail members all of whom are owner-operators of New Zealand grocery stores, from the largest supermarkets to the smallest dairies. Members vote to find the best grocery supplier in the country. In addition to collecting the overall Grand Prize, Cookie Time also took away a Gold in the Best Small Supplier category. Judging criteria included new product development, paper trail, in-store support, distribution efficiency, orders delivered on time and in full, and head office relationship. l

State-of-the-art retail service station for Waiuku Greenstone Energy has started construction of its fourth retail development, a brand new $3 million retail service station at Waiuku, south of Auckland. The site is located on the corner of Kitchener Road and King Street. Greenstone is the New Zealand company which acquired Shell New Zealand’s retail fuel and distribution assets in April 2010. Since then, Greenstone has completed two new retail service stations, representing $5 million of investment, and a new truck refuelling facility.

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The existing Waiuku site, which was formerly operated by a competitor, will be completely demolished and a new state-of-the-art site will be built from scratch. The new Shell branded site will feature a 100sqm shop, eight fuel filling stations and a top-of-the-line car wash. The existing Shell service station on Queen Street will be closed once the new site is completed. Greenstone will be working closely with project architects SHA, project managers Sinclair Knight Merz,

Shell customers to benefit from new technology Greenstone Energy announced it will replace all point of sale systems across its Shell-branded service stations and truck stops, which will enable it to deliver even better service to customers and provide a platform for new technologies. Greenstone has signed a contract with Kiwi technology company Fusion Transactive to replace all point of sale systems at company operated service stations and selected truck stops nationwide. Greenstone’s general manager of retail, Mark Forsyth, said the $10m investment in new technology will increase the speed of transactions and improve customer service. “Earlier this year, we undertook a huge amount of customer research which told us what mattered to our customers and what they expected of a new Kiwi fuel supplier. “We’ve listened to our customers and have committed to a number of initiatives which will enable better service. One component of this commitment to giving our customers what they want is replacing our point of sale technology. “The technology developed by Fusion Transactive not only makes it faster to process a customer transaction, it gives us a future-proof platform to lower our costs which we can then pass on to our customers in the form of lower prices,” Forsyth said. Fusion Transactive was selected by Greenstone as a result of a competitive tender process. “Fusion Transactive is an innovative New Zealand company that is consistently first to market with worldclass state-of-the-art technology. Their commitment to customer satisfaction equals our own and we are excited to be partnering with them,” said Forsyth. Fusion Transactive chairman Sir Peter Maire said Fusion is a world-leading supplier of site automation and payment

systems to the retail fuels industry globally, with offices in Malaysia, China, South Africa, Australia and New Zealand and significant product installations in Malaysia, Africa, India, the Middle East, South East Asia, Hong Kong, Australia, New Zealand, and South America. Fusion’s product history spans more than 30 years, and it has been at the forefront of ‘Pay at Pump’ initiatives, developing many “first in world” products. Sir Peter said Fusion Transactive was delighted to be partnering with New Zealand’s leading locally owned fuel retailer. “This announcement demonstrates Greenstone’s commitment to investing in New Zealand and to delivering an innovative, user-friendly, cost-effective and streamlined service, which translates into a better experience for its customers,” he said. The new point of sale technology will be piloted by 30 June 2011, with a full rollout commencing after then. l

and contractors Cassidy Construction and Petroleum Solutions in the development of the new site. Greenstone’s general manager of retail, Mark Forsyth, said the company was investing strategically in the company’s future growth. “We saw this as a great investment opportunity for Greenstone and for the people of Waiuku. Our current site in Waiuku is pretty busy but it’s fairly old and run down so we think a new site is well overdue,” he said. “Waiuku is a fast-growing town that deserves a modern,

efficient service station with a great convenience store offering. There’s been strong public and customer support for Greenstone since we acquired the Shell downstream business last April and we’re determined to continue to earn that support by investing in assets that benefit local communities, and what’s more, Greenstone’s profits stay right here in New Zealand.” The new Shell-branded service station is expected to open in the first quarter of 2011. The site will be operated by local retailer Wayne Kennerley. l

The Greenstone and Fusion team involved in the project. From left to right: Tim Gurnsey (Greenstone), Vance Anderson (Greenstone), Matthew Gibson (Fusion Transactive), Andrew Stewart (Greenstone), Mark Forsyth (general manager Retail, Greenstone), Sir Peter Maire (chairman, Fusion Transactive), Brian Ryan (Fusion Transactive). A sample Fusion generation 6 outdoor payment terminal.

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Reading the smoke signals Considering tobacco displays. By trina snow Trina Snow, executive director, NARGON.

In the last months of the previous Labour government, the Health Select Committee recommended that Parliament should ban tobacco and cigarette displays in all shops. This would have affected over 10,000 retail outlets which sold tobacco products as most of them used large display units. At the time, the National Party members of the committee disagreed with the recommendation. In a minority report, they said there needed to be more evidence that a ban would be effective before it should even be considered. That position was adopted by the new National-led Government with Health Minister Tony Ryall saying in March 2009: “If research suggests that a ban on displays would result in a significant reduction in tobacco use, then the Government would give the issue further consideration.” In 2010, the Minister again gave similar assurances to NARGON that a display ban was not being considered. In November 2010, Maori Affairs tabled its own report on tobacco use.While the focus was on Maori, the committee made a series of hard-hitting recommendations intended to halve smoking by 2015 and make New Zealand smoke-free by 2025. In this context, smoke-free means less than 3% of the population smoke.The current figure is around 20%, but is 40% for Maori. The recommendations include a ban on retail displays of tobacco products, forcing all cigarettes and tobacco into plain packaging with health warnings, further tax increases on tobacco products, reducing tobacco imports, increasing fines up to a maximum of $10,000 for selling tobacco to an under-age customer, allowing councils to restrict the number of tobacco outlets as they can now do for liquor stores and looking to ban smoking in vehicles and certain public places, including some outdoor areas. Predictably, reaction to the report has been mixed with descriptions ranging from “groundbreaking” to “controversial.” British American Tobacco said the committee had

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recommended tobacco prohibition in all but name. All attention then focused on the reaction from the Government. Associate Health Minister Tariana Turia was very supportive of the report even before the Government made a formal response to the report. Her comments were predictable because she is the Minister responsible for tobacco control policy, a long-time critic of smoking and the select committee report was initiated by her Maori Party colleague Hone Harawira. It was somewhat more surprising that Health Minister Tony Ryall appeared to give his support to implementing a number of the recommendations in the report. Prime Minister John Key sounded a more cautious note saying the ‘smoke-free by 2025’ goal would be “extremely difficult” to achieve. Cabinet has considered the report and will select which recommendations to implement. Legislation will then be drawn up and could be passed early this year. Any legislation would be likely to draw strong political support with only Act and United Future likely to even consider voting against. NARGON has consistently argued that a ban on tobacco displays would be costly for stores and would have little impact on the incidence of smoking. We support the right of individual stores to make their own decisions about how they display (or hide) tobacco products and we believe this is the best approach overall. A number of our members already choose not to display tobacco products based on their own beliefs. The Maori Affairs Select Committee report, while comprehensive, does not appear to contain the new evidence which Health Minister Tony Ryall said would be necessary for the Government to consider a display ban. What seems to have changed is the political environment, particularly the importance the Maori Party has placed on tobacco and smoking since the last election. Wellington insiders are speculating that this seeming change of mind from National is designed to cement their long-term relationship with the Maori Party, as well as reducing smoking in New Zealand. Certainly, Ministers rarely perform such a clear u-turn without good reason. Despite all the signs pointing to the Government rapidly passing the report’s recommendations, NARGON urges them to consider each carefully and to implement only the ones which will help reduce tobacco-related harm without exposing our industry to excessive costs and risks.

RESOURCE DIRECTORY

Arrow Refrigeration Limited 163 Archers Road, Glenfield PO Box 101162 NSMC, Auckland Ian Gregory, Sales Manager • Ph: 09 444 1661 • Fax: 09 444 1961 • Email: sales@arrowfreeze.co.nz • Website: www.arrowrefrigeration.co.nz

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february 2011 FMCG

the business of liquor reselling 56

FMCG February 2010

Back to The imminent launch into grocery of a new beer of exceptional quality started with a simple idea: to create a beer that was traceable and true to the land it came from. The result is Monteith’s Single Source, a beer that you can really get to know, down to the paddocks it came from and the people that were involved in its creation. Single Source is a revolutionary new beer that is derived from Charmay barley from a singular Rakaia barley farm and Southern Cross hops from a singular Motueka hops farm, each one a source of the very best ingredients. “It’s important to understand the source of ingredients before making a top quality craft beer, if you don’t understand the source, you’re not

going to understand the finished beer,” explains Monteith’s head brewer Tony Mercer. “We’ve looked at every single aspect of the beer; we figured if we did what we’ve always done we’d end up with the same results. We wanted to create something with real interest that reflected the influence of our unique land and climate. We wanted to be able to almost taste the locations the crops were grown in.” The last year has been an intensive search for the best ingredients. The first stage was finding the best hops and the best barley in New Zealand. Specialist growers – the superstars of hops and barley – were needed. Monteith’s found Bill Davey from Rakaia and Ian Thorn from Motueka.

Barley grower, Bill Davey. Monteith’s head brewer Tony Mercer.

the source Davey grows barley on his farm in Rakaia, he’s a meticulous man, and rumour has it that his paddocks are so immaculate, even the dirt is clean. His attention to detail is not lost on son Nick, who is learning to work the land alongside his Dad, following a long family tradition. The Charmay barley Davey provides for Single Source is grown under carefully tended conditions in a unique climate, where the northwesterly winds that roam the Canterbury plains ensure the barley is naturally dried to retain an optimal 14% moisture level. Davey’s Charmay barley has been specifically chosen for the lasting freshness and distinct flavours it gives to the beer. The hops are grown by Ian Thorn in

Inside the pale, straw-coloured lager is a flavour that begins with a soft bitterness building delicately with an aromatic balance of citrus and spice, ending with a sharp, dry finish. Ngatimoti. Thorn grows Southern Cross hops, a specific variety that has been selected for Single Source because of a rare attribute; it provides both aroma and bitterness to the beer. Thorn’s family have been growing hops on his property since 1928, and he takes great care at every stage of the process. People who

know his passion for hops will not be surprised to learn that he actually sleeps next to the hops when they are drying during harvest, waking each and every hour to check for optimal moisture. Thorn has worked out that Southern Cross hops really like the microclimate in his garden. It’s one february 2011 FMCG

Ian Thorn.

Thorn’s family have been growing hops on his property since 1928, and he takes great care at every stage of the process.

of those varieties that respond well to the cold so he grows it on the far side in the corner under the shade of the hill. Usually a selection of hops will be used in the brewing process, bringing different qualities to each stage. But the Southern Cross is a hop of many talents and because of its unique characteristics it stars alone in Monteith’s Single Source. The result is a delicate aroma of lemon peel and pine needles, layered beneath a clean spiciness and soft herbaceous undertone. Sharing a passion With the best ingredients sourced, Tony Mercer got to work to create the beer he envisioned. Monteith’s Single Source is made at the Mainland Brewery in Timaru where they share Monteith’s passion for doing things differently. Under the watchful supervision of Mercer and Adrian Finlayson (Mainland Brewery manager), great care has been taken throughout the brewing process. “A limited run of a specific beer like Monteith’s Single Source takes a lot

FMCG FEBRUary 2011

of thought and effort. We’ve had to change the way we do a few things,” says Finlayson. The result is a crisp, refreshing lager that is a traceable reflection of climate, land and craft. And how does it taste? Monteith’s Single Source is a bottomfermented batch-brewed pilsner. Inside the pale, straw-coloured lager is a flavour that begins with a soft bitterness building delicately with an aromatic balance of citrus and spice, ending with a sharp, dry finish. Having gone to such lengths to create a beer of singular quality, it had to be protected. Monteith’s Single Source comes in a black bottle because UV rays are detrimental to a good beer. They can damage it and alter the flavour. The black bottle is the best way to protect the beer, so it can be enjoyed as it was intended. A bottle of beer left exposed to sunlight or light from fluorescent bulbs significantly damages the taste of beer by altering the flavours of the delicate hops. (This can yield a taste that is often described as

‘skunky’ – an aroma not unlike the skunk itself.) Monteith’s decided black glass would be the perfect packaging choice for its new Single Source beer also because of its premium, sophisticated appearance. Monteith’s marketing manager, Russell Browne, says black glass helped to create a bold-looking product. “Black glass allows us the opportunity to do two things; primarily it protects our flavours from damaging UV light and secondly delivers a very distinct image on-shelf to reflect a totally different way of brewing.” From the paddock to the packaging, everything about this craft beer has been selected for a purpose. Mercer says: “I guess what makes this beer different, is that nothing is left to chance. It’s a bottle full of interest – the best ingredients, the most meticulous and passionate craftsmen producing it, and the best brewing processes. After a long, hard journey I’m pleased to release a beer that tastes of the land and the people that helped produce it.” l

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Monteith’s returns to 2011 Hokitika Wildfood Festival This year’s Hokitika Wildfood Festival is themed ‘Where the Wild Foods Are’ and takes place on Saturday 12th March. Monteith’s, one of the original sponsors of the iconic Hokitika Wildfood Festival, has renewed its beer sponsorship for the 2011 event. Monteith’s was established on the West Coast in 1868 but its popularity has spread much further than the South Island. Monteith’s is now a firm favourite across Australasia and is sold in the UK. Monteith’s first appeared at the Wildfoods Festival in 1990 but became an official sponsor in 1995. The sponsorship arrangement lasted until 2006 – 17 years in total. Monteith’s marketing manager Russell Browne says the Monteith’s team is looking forward to being back at the festival and showcasing some of their more recent varietals to festival-goers. “We’ve launched many new variants since 2006 and recently

The Monteith’s team and fans are looking forward to being at Hokitika Wildfoods Festival.

added two ciders to the Monteith’s family, which have been received extremely well. All our beers match with food, even food that is slightly unusual or wild!” Tickets to the Hokitika Wildfoods Festival can be purchased through Ticketdirect www.ticketdirect.co.nz. l

More accolades for VnC Cocktails VnC Cocktails has confirmed its position as one of the world’s most awarded ready-to-serve cocktails by taking home four medals from the Beverage Testing Institute in Chicago. Passionfruit Caprioska flavour was awarded a Gold Medal and described as being “exceptional”, while Mango Daiquiri and Pomegranate Cosmo earned Silver Medals and “Highly Recommended”. Banana Daiquiri also won for the second year in a row, receiving a Bronze medal. Founded in 1981, The Beverage Testing Institute (BTI) is

FMCG FEBRUary 2011

an independent corporation that conducts professional, blind tastings and reviews of beverage products, and is widely recognised as America’s most respected tasting authority. The judging panel are all recognised as worldclass sensory evaluation experts in the field of alcoholic beverages. “It is great to see that the ready-to-serve cocktail category has reached a point where it is now judged and reviewed internationally,” says Alex Badger, marketing manager – VnC Cocktails. “We are thrilled to have been awarded medals from the BTI again this year – VnC Cocktails have exploded across international markets including Asia, Europe and the US so it’s great to be recognised on the international stage.” Founded in New Zealand, VnC Cocktails are now one of the world’s most awarded readyto-serve cocktails. Using only 100% natural fruit juices with no preservatives, additives or colours, each recipe has been perfected by award-winning mixologists. l

New research may lead to low-allergenic wines Low-allergenic wines could soon be available, stifling sniffles and sneezes in millions of people. Scientists have discovered a mysterious culprit in wine that causes headaches, stuffy noses, skin rash and other allergy symptoms in some wine drinkers. The discovery could help winemakers in developing the first low allergenic vintages – reds and whites with less potential to trigger allergy symptoms, they say. Giuseppe Palmisano and colleagues noted growing concern about the potential of certain ingredients in red and white to cause allergy-like symptoms that range from stuffed up noses to headaches to difficulty breathing. So-called wine allergies occur in an estimated 8% of people worldwide. Only 1% of those involve sulfites, sulfur-containing substances that winemakers add to wine to prevent spoilage and which also occur naturally. But the wine components that trigger allergies

in the remaining 7% are unclear. Studies suggest that glycoproteins – proteins coated with sugars produced naturally as grapes ferment – may be a culprit. However, scientists knew little about the structure and function of these substances in wine. Their analysis of Italian Chardonnay uncovered 28 glycoproteins, some identified for the first time. The scientists found that many of the grape glycoproteins had structures similar to known allergens, including proteins that trigger allergic reactions to ragweed and latex. The discovery opens the door to new wine-making processes that minimise formation of the culprit glycoproteins, offering consumers low-allergenic wines. l

• The new study appeared recently in ACS’ monthly Journal of Proteome Research and was reported by the American Chemical Society.

Special delivery of Moa for Scott Base Award-winning beer Moa is sending a special delivery of 2000 bottles – plastic, not glass – to Scott Base to help get the icemen through the Antarctic summer, when the temperature can reach a balmy -3°C. Three types of the Marlborough-brewed beer were loaded onto a ship leaving Christchurch for Antarctica on Tuesday, 11 January. Those summering over on the ice will have a unique Moa experience as the delicate nature of the southern continent’s environment means everything that goes in must come back out. “Our team had to come up with a solution, so we’ve been experimenting with plastic bottles, which have proven to be very successful and maintain the delicious Moa taste,” says brewer Josh Scott. He and his team bottled Moa Methode, Moa Blanc and Moa Noir in 600ml plastic bottles just before Christmas and, after a tasting session, said they were “drinking very well”. “We’re also creating a new Moa label and have developed a special version of it just for the Antarctica shipment.”

Moa national sales manager Gareth Hughes says: “Apparently there are about 30,000 cans of beer consumed by Kiwis in Antarctica every year. It is great they can now enjoy a hand-crafted Moa in a purpose-built plastic bottle.” However, he does expect the Kiwis to be protective of their stock of Moa – “the Americans are only invited over to the base on selected nights because they apparently drink quite a lot, so the Moa will be precious cargo”. l

february 2011 FMCG

Growers drive campaign to turn more

vineyards organic Discerning consumers all over the world increasingly demand quality organic wines at an affordable price. As a result, the amount of New Zealand vineyard land under organic certification has tripled in the past three years. The country’s organic wine and grape industry has taken off as growers pursue environmental quality and wine quality, striving to differentiate themselves in a tough wine marketplace. And organic wine producers have started 2011 by announcing a bold goal: 20% of New Zealand vineyards will be organic by the year 2020. “By 2020, even if we only achieve 20% of the vinelands in our country as being certified organic and biodynamic, it will be a giant step towards enforcing our very precious environmental image to wine connoisseurs all over the world,” says organic grower and winemaker James Millton, chairman of Organic Winegrowers New Zealand (OWNZ). OWNZ is a 140-member national association, led by growers seeking to share and promote the organic way. “Organic winegrowing encompasses the goals of social, environmental and financial sustainability for our nation,” Millton says. New Zealand Winegrowers (NZW), the national organisation for New Zealand’s grape growers and winemakers, is strongly supportive of the “20% by 2020” goal set by

FMCG FEBRUary 2011

OWNZ, according to NZW ceo Philip Gregan. “We see the expansion of organics over the next decade as an important component of the industry’s commitment to sustainability and are confident it will strongly support our brand positioning in global markets.” Nationwide, nearly 1500 hectares of vines on 115 vineyards are now managed organically – representing 4.5% of all vineyard land. In 2010 OWNZ and New Zealand Winegrowers signed a Memorandum of Understanding to promote organic production together, through education, research, and marketing initiatives, with funding from wine industry levies. The agreement made the wine industry the nation’s first to make such a formal long-term commitment to supporting organics.

merits of organic and conventional vineyards growing side by side. Growers nationwide are watching the trial unfold in real time, through field days and through a website at www.organicfocusvineyard.com. And the results so far? Both the conventional and organic blocks are progressing in good health – and the organic block has actually been slightly cheaper to operate. “Growing organically has been very fascinating and satisfying,” says Mission viticulturist Caine Thompson. “I’m finding that organic growing has raised awareness within myself and staff about how the vineyard block is looking and feeling. Blocks are visited and monitored more often, resulting in a genuine attachment to the land and the vine growing within its environment.”

Making the switch It is not just small artisanal growers who are turning organic, but many major New Zealand wine companies as well. “We are attracted to the natural approach to growing, which is the core of our business,” says Caine Thompson, viticulturist for Mission Estate in Hawkes Bay, New Zealand’s oldest winery. This season, Mission Estate became the first “Organic Focus Vineyard” in a three-year research and education project. The project, funded by NZW and run by OWNZ, is comparing the

Mission is an environmentally conscious and a very innovative company with a strong focus on sustainability. “Some of our initiatives have included an ISO140001 environmental management system accreditation since 1998 and an active energy management programme,” explains Peter Holley, ceo Mission Estate. “We have also implemented a number of ongoing projects with regard to carbon accounting. These innovations have contributed to a number of leading industry initiatives with regard to vineyard management,

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Mission Estate, Hawkes Bay.

pest and disease control. We are a significant contributor to programmes that will be used to establish industry best practice. The organic wine growing trial has been managed by our viticulturist, with the objective of improving vine, soil health and fruit quality with the ultimate goal of producing wines with refined texture and pure varietal expression. In addition to the relentless pursuit of wine quality we are also pioneering a lower cost of production under an organic regime. This will clearly offer a competitive advantage particularly in aggressive global markets aggravated by unfavourable exchange rates. Ultimately, if discerning wine consumers demand an organic wine we will be well placed to supply a superior product at an affordable price.” Working with Mother Nature No synthetic chemical fertilisers, pesticides or herbicides are permitted in organic vineyards. Instead, organic producers must work with ecological processes, biodiversity, and naturally derived products.

“The main outcome with organic winegrowing, and any other form of growing organic plants and animals, is that a closer relationship is established with Mother Nature,” says OWNZ chair James Millton. “If you are good to her she always repays you.” The latest repayment for the Millton Winery: one of the highest honours in the recent Air New Zealand wine awards, a champion trophy for its 2009 Riverpoint Viognier. When James Millton and his wife Annie started their organic vineyard in Gisborne in 1984, they were the only ones doing it in New Zealand. Says Millton: “In 1984 they thought we were crazy. We’ve just spent the last 28 years proving to everyone that they were right. We are crazy. But now it seems everyone wants to be crazy too and it’s just what this planet needs.” l

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Has your team been part of a charity event, opened a new factory, or dreamed up a colourful promotional activity? Send us your favourite photo and go in the draw for a Heineken gift pack work over $50. Just email your high res image with a caption and your contact details to: editor@fmcg.co.nz

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ples to

DIARY 2011

FEBRUARY

MAY

9-11

FRUIT LOGISTICA International trade fair for fruit and vegetable marketing. Berlin, Germany www.fruitlogistica.com

11-14

BIOFACH 2011 World organic trade fair and Vivaness 2011 (Trade Fair for natural personal care and wellness). Nuremburg, Germany www.biofach.de/en

HOFEX 2011 The 14th Asian International Exhibition of Food & Drink, Hotel, Restaurant & Foodservice Equipment, Supplies & Services. Hong Kong Convention & Exhibition Centre, Hong Kong www.hofex.com

12-18

INTERPACK International packaging trade fair. Duesseldorf, Germany www.interpack.com

26-28

BIOFACH CHINA International organic trade fair. Shanghai (China) www.biofach-china.com

27-29

THE FOOD SHOW (WELLINGTON) New Zealand based food show. Westpac Stadium, Wellington www.foodshow.co.nz

16-19

27-2 MAR GULFOOD DUBAI www.gulfood.com

MARCH 1-4

FOODEX International food and beverage exhibition, Makuhari Messe Tokyo, Japan www3.jma.or.jp/foodex/en/

4-14

MELBOURNE FOOD & WINE FESTIVAL Melbourne, Australia www.melbournefoodandwine.com.au

11-13

NATURAL PRODUCTS EXPO WEST International trade show for the natural, organic and healthy products industry. Anaheim, USA www.expowest.com

NARGON AGM Wellington www.nargon.co.nz

JULY 28-31

THE FOOD SHOW (AUCKLAND) New Zealand based food show. ASB Showgrounds, Auckland www.foodshow.co.nz

AUGUST 9

NARGON BREAKFAST In association with Foodstuffs Expo. Palmerston North www.nargon.co.nz

SEPTEMBER

APRIL 8-10

THE FOOD SHOW (CHRISTCHURCH) New Zealand based food show. CBS Canterbury Arena, Christchurch www.foodshow.co.nz

5-8

FINE FOOD AUSTRALIA Sydney www.finefood.com.au

Is your event or trade fair featured here? If youâ&#x20AC;&#x2122;d like to be included please email: editor@fmcg.co.nz

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