FMCG March 2011 by mediaweb

incorporating

9 421902 251016

march 2011 Volume 17 No 2 $9.15

THE BUSINESS OF MANUFACTURING • LOGISTICS • SUPERMARKETING

fmcg . co . n z

•

foo d ne w s . co . n z

No mess, no pain,

NO DRAIN!

John West introduces super convenient Tuna.

The Best.

*Trademark used under licence.

NZ’s #1 Juice Brand –

Celebrates 30 Years Still NZ’s favourite thanks to taste and innovation…ﬁnd out what makes Just Juice an iconic Kiwi drink We’ve seen stubbies come and go, roller skates replaced by game consoles and mullets snipped away. When it comes to food trends Kiwis have been just as ruthless. The traditional meat and three veg replaced with hummus, alfalfa and tofu, but as Kiwis ride the new frontier in emerging trends one thing has remained the same – their passion for Just Juice. From the iconic ads of the 1980s Just Juice has stayed in the hearts and minds of Kiwis who have remained faithful to the brand thanks to its smart product innovations and inclusive marketing strategies.

A little taste of history Since launching in 1981, Just Juice quickly established itself as a beverage that Kiwis could rely on. Now celebrating its 30th year, Just Juice is a hugely successful and trusted New Zealand brand that enjoys the position of the country’s top-selling fruit juice, with 100% awareness*. This could also be credited to the team who live and breathe the Just Juice brand! Just Juice Senior Brand Manager Amanda Lyon says the initial Just Juice launch was so successful it is still seen as one of our truly great marketing case studies.

“So instantly popular was Just Juice when it was launched, New Zealanders’ consumption of fruit juice almost trebled over the next three years!” says Lyon.

Smart Thinking It’s the company’s commitment to product development and continued innovation that’s seen another more recent stand out success. The team at Just Juice believed that Kiwis growing sophistication in taste and demand for quick access to functional beverages meant they were ready to try something new. If sushi and falafel was now part of a staple Kiwi diet when it came to juice varieties the opportunities were endless. Enter Just Juice with Veges – the new product has been a standout success – selling out on shelf within its ﬁrst few days. This clever new range was created not as a replacement to fresh fruit and vegetables, but rather as a quick and convenient way for families to get an additional serve of fruit and vegetables throughout their busy day. The team were right; Kiwis were ready to add to their juice repertoire and the three new Just Juice with Vege skus proved an overnight success for the company.

Facts and Figures Just Juice with Veges achieved 23% share of the Vegetable Juice category in total supermarkets in the quarter ending 30 January 20111 – the ﬁrst full quarter since launch. Just Juice is Frucor’s second largest brand, boasting a market share of 25.6%2 in supermarkets and enjoying 61.3%3 share in service stations. Frucor is a signiﬁcant force in Shelf Stable juice, with 44% share4.

Just Juice has enjoyed signiﬁcant growth, buoyed by almost $1 million in sales from the new Just Juice with Veges line extension within the ﬁrst six months of launch5. Lyon says the Vegetable Juice category was declining by -8.7%6 in the quarter prior to the launch of Just Juice with Veges, after four years of growth7.

ADVERTORIAL The Just Juice secret ingredient is out Lyon says the secret to the Just Juice brand’s enduring success is that there is no secret. Making quality products that capture the hearts and the tastebuds of Kiwis is something the company has been doing for 30 years. “The Just Juice brand is consistently supported by signiﬁcant investment in innovative advertising, consumer insights and adding value,” says Lyon. An example of this is the current consumer promotion to celebrate 30 years of summer with Just Juice. ‘Relive your favourite summer’ is a promotion that aims to strike at the heart of New Zealanders and all the things that make up a great Kiwi summer. Playing up the brand’s iconic Kiwi heritage Just Juice also relaunched the much loved Caribbean Just Juice ﬂavour to coincide with the celebration of 30 years of summer.

ENTER ONLIN

E AT JUSTJUIC E.CO.NZ

For more information, full terms and condi *Competition starts tions and to enter visit Monday 24 January justjuice.co.nz and ends Monday 18th of April. Actual prizes may differ from those depicted.

What Kiwis say about our Just Juice with Veges Wow it’s not what I expected at all!” “My kids thought this was the best thing out!” “I love that it’s one of their 5+ a day” “What an excellent idea

“Just Juice is proud to announce we have had a great summer with proﬁts up, new innovations like Just Juice with Veges on shelf and even more exciting new product developments yet to come from Just Juice, New Zealand’s leading juice brand and Frucor, New Zealand’s leading juice manufacturer.” says Lyon.

While celebrating the past successes is something to be proud of the Just Juice brand is ﬁrmly focused on future growth. The brand will be supported this year with new and exciting product offerings and marketing initiatives to continue to whet Kiwis appetite for the juice they know and love.

*According to Colmar Brunton Market Research, Total Just Juice awareness, Mums with kids of all ages, January 2011. **According to AC Nielsen data. 1) Nielsen Scantrack, Total Vegetable Juice (Shelf Stable), Total Supermarkets, Just Juice brand val % share, QTR ending 30 January 2011 2) Nielsen Scantrack, Total Shelf Stable Juice and Drinks, Total Supermarkets, Just Juice brand val % share, MAT ending 30 January 2011 3) Nielsen Scantrack, Total Shelf Stable Juice and Drinks, Total Service Stations Organised, Just Juice brand val % share, MAT ending 30 January 2011 4) Nielsen Scantrack, Total Shelf Stable Juice and Drinks, Frucor manufacturer val % share, MAT ending 30 January 2011 5) Nielsen Scantrack, Total Shelf Stable Juice and Drinks, Total Supermarkets, Just Juice With Veges brand val sales, 26 weeks ending 30 January 2011 6) Nielsen Scantrack, Total Vegetable Juice (Shelf Stable), Total Supermarkets, Val % Chg vs YA, QTR Ending 27 June 2010 7) Nielsen Scantrack, Total Vegetable Juice (Shelf Stable), Total Supermarkets, Val % Chg vs YA, MAT to 31 December 2006 – MAT to 03 January 2010 Written on behalf of Just Juice by Impact PR. For further information or images, please contact Fleur Revell-Devlin ﬂeur@impactpr.co.nz (ph.021509600) or Mark Devlin mark@impactpr.co.nz (ph. 021509060).

416709 000592

FAMILY PACK

PORTABELLO

Meadow Mushrooms Ltd. Springs Road, Prebbleton, Canterbury, New Zealand.

Refrigerate Net Weight when packed 400gm

PORTABELLO

FAMILY PACK

50mm

90.25mm

Refrigerate Net Weight when packed 400gm

100%

Registered

Matt

100%

Registered

Date:

Label Size: 50 x 90.25mm

Laminated

2nd Proof

cyan

magenta

yellow

black

pms

THIS WAY

pms

dieline

1 3

2 4

THIS WAY

Core Size: 76mm Qty per roll: 5000

Description:

THIS WAY

24-09-10

THIS WAY

Overgloss

THIS WAY

Code: MM_Ports400

416709 000592

THIS WAY

Client: Meadow Mushrooms

THIS WAY

Meadow Mushrooms Ltd. Springs Road, Prebbleton, Canterbury, New Zealand.

IMPORTANT Please check this proof for spelling errors and layout. Mark alterations clearly, if alterations are required please do not sign until corrections are completed. This specification is for a layout and visual guide only and does not necessarily indicate final print. All colours are matched to designated PMS colours or CMYK colours as per customer specifications. Clients signature is authority to proceed with order as per proof guide. Please return to GEON. Po Box 19707 Christchurch. Fax 03 384 2905. email christchurch.art@geongroup.com GEON Signature verifies that the product you require matches the sample provided.

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contents m a rc h 2 0 1 1

8 6 7 8 18

Editor’s note FMCG online Industry news What’s hot

Features 44 New packaging trends

Category checks

22 Confectionery 32 Male grooming 40 Paper products

Regulars 14

Fresh and local In season

Beef&Lamb Optimising meat quality

FGC Review of food labelling

38 GS1 APEC’s view on supply chain visibility

OUR COVER John West is set to grow the Shelf-stable Tuna category with a convenient ‘no drain’ succulent tuna range.

contents m a rc h 2 0 1 1

39 Nargon Bring on Rugby World Cup 2011!

44 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

52 Feature Big milestone for Kiwi company

56 Nargon

When myths become facts

57 Directory

58 Feature Shades of white

60 Review

New Zealand mĂŠthode traditionelle

Industry news

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e ditor ’s note Vol 17

No 2

march 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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Mediaweb Limited PO Box 5544 Wellesley Street, Auckland 1141 Used on a black background Phone 09-845 5114 Fax 09-845 5116 www.mediaweb.co.nz The opinions and material published in FMCG are not necessarily those of the publisher except where specifically stated. © 2011 Mediaweb Limited. ISSN: 1175-8279 (Print), 1179-8718 (Online).

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

Are we prepared...? As we go to print with this issue of FMCG, our thoughts and good wishes go out to our colleagues and all the people in Christchurch. When the city was struck by a massive earthquake on 22 February, buildings, roads and infrastructure sustained major damage and the loss of power and water around some parts of the city presented incredible obstacles and challenges for suppliers and distribution centres. Within just four hours after the earthquake struck, Foodstuffs’ crisis management team had formed and began communicating updates about its operation in the region. Once all office and distribution centre (DC) staff were evacuated and safe, Steve Anderson, ceo Foodstuffs South Island said: “We are committed to ensuring continuous supply of essential food and water to Canterbury residents. Our distribution centres suffered only minor damage and we intend to resume the distribution of food to our retail stores today.” Thankfully, Hornby DC and Papanui DC held up well with just minor stock damage, but Foodstuffs’ Dunedin DC took on some additional workload to assist both Papanui and Hornby DC in the short term. Continual updates to communicate Keep well and stay safe.

Tamara Rubanowski editor@fmcg.co.nz

with staff and suppliers were emailed and published on the Foodstuffs’ South Island website. We commend Steve Anderson and his team for such an excellent timely response. In the days following a natural disaster, stores and suppliers need to be prepared for a large demand on basic everyday products such as water, toilet paper, anti-bacterial products, canned foods, baby needs, cleaning products and sanitisers. FGC’s ceo Katherine Rich was assisting retail partners with what they needed, to get as many of their stores back in operation and stocked. At the same time, Katherine was collecting offers of assistance and directing donations to the Salvation Army. If your company wants to donate goods or services to the people of Christchurch, please contact Katherine.rich@fgc.org.nz or Annabel_Causer@nzf.salvationarmy.org The earthquake was a timely reminder for all of us to ensure that we have procedures in place to protect our families, staff and vital business data. Are your managers well prepared to lead confidently in such complex conditions? We will bring you more information on the earthquake and rebuilding efforts in the next issue of FMCG.

• 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.

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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.

Biofuel sales hit all-time high Dave Bodger, general manager of Gull New Zealand, explains on www.fmcg.co.nz why biofuel is so successful.

New products From super soft Oatilicious™ bread to stainless steel wipes for the kitchen – take a sneak peek at some of the latest product launches online.

Meat industry poised for premium global markets Find out online how two large companies are collaborating to share their knowledge and resources to maximise the benefits for New Zealand. The New Zealand Merino Company’s chief executive John Brakenridge (pictured here) and Silver Fern Farm’s chief executive Keith Cooper talked to FMCG.

Billion-Euro deals at Fruit Logistica 2011 No other event brings together trading partners across the global value chain as effectively as Fruit Logistica, says ceo of the New Zealand German Business Association Monique Surges. For more information about this recent trade fair visit 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 ecostore among top sustainable firms ecostore is the only SME among the top five brands that Kiwis cite as being sustainable in Colmar Brunton’s Better Business; Better World study, along with major corporates Toyota, Air New Zealand, Meridian Energy and The Body Shop. Ecostore ceo Malcolm Rands says the company’s ability to stand shoulder to shoulder with huge brands, with large advertising budgets and marketing departments, demonstrates ecostore’s unrelenting focus on providing healthier products and is winning fans. ecostore was founded 18 years ago by Malcolm and Melanie Rands to provide household cleaning and body care products that aren’t just better for the environment, but also for people’s health. “Sustainability has been at the core of ecostore’s business philosophy since we started it in 1993; it’s our passion and guides everything we do,” says Rands. “We ensure sustainability practices are applied in the manufacturing process of our products, including supplier selection and packaging, and other aspects of the business such as staff management and community involvement. “For us, sustainability is not just about the effect of products on the environment, but also on people’s health.”

Of those surveyed, 88% said they want to buy from environmentally and socially responsible businesses and more than half said sustainability influences their choice of provider or brand. Still, only 13% said they feel well informed on matters relating to Malcolm Rands. sustainability. Rands says ecostore regularly seeks feedback from its customers to discover additional ways to improve its products and services and identify opportunities to educate consumers further. ecostore products are GE free, not tested on animals, New Zealand made, use recyclable materials, are made from plant and mineral based ingredients, and are proven to be better for the environment and human health. ecostore manufactures its products at its Enviro-Mark NZ – Diamond certified facility in east Auckland. With 35 full time employees, ecostore products are now exported to Australia, the United States, Hong Kong, Singapore, South Korea and Taiwan. ecostore was named New Zealand’s ‘Sustainable Business of the Year’ at the 2009 NZI Sustainable Business Network Awards and is a Deloitte Fast 50 company. l

Jennifer Lopez – new ‘Venus Goddess’ International celebrity Jennifer Lopez has been announced as the first-ever global ambassador for Gillette’s Venus Goddess brand and will lead a campaign aimed at “inspiring women to reveal their inner goddess and empower themselves with greater education”. Lopez and her famously fabulous legs will star in the new campaign, dedicated to encouraging women to feel their most confident, powerful and beautiful – inside and out. “The Venus brand empowers women and speaks to the ‘goddess’ in every one of us,” says Lopez. As part of the campaign, a new philanthropic initiative has been developed – the Venus Goddess Fund for Education, which will carry the brand’s “goddess” message to a whole new level. The newly established Venus Goddess Fund for Education will enable global educational opportunities for women through partnership with organisations such as CARE International, the Step Up Women’s Network and Lopez’s own Maribel Foundation. Founded by Lopez and her sister Lynda, the mission of The Maribel Foundation is to improve the health and wellbeing of women and children including raising the level of medical care available to them. Lopez has also recorded a remake of the classic ‘Venus’ song

FMCG MARCH 2011

as part of the campaign. “Music is one of my great passions, so being able to record and perform a remake of the iconic Venus song was a really special part of this campaign. I love that I could express my own passion and creativity, and hopefully inspire other women to do the same…whatever it is they love doing,” she says. “Jennifer is a Venus Goddess in every sense of the word. Our brand celebrates the multidimensionality of women, and no one embodies that more than her,” says Procter & Gamble spokesperson Lisa Cunningham. With more than 100 brands available in nearly 130 countries, Procter & Gamble is one of the world’s largest beauty and grooming companies. Lopez has been called one of the most powerful and celebrated personalities in entertainment. She has sold over 55 million records worldwide and starred in multiple box office hits. l

n ews Progressive MD to retire Progressive Enterprises has announced the retirement of managing director Peter Smith after an outstanding career in supermarket retailing. Smith will retire effective July 2011. Dave Chambers, general manager of supermarket operations, will take his place as managing director. Chambers brings over 30 years of experience in the New Zealand retail sector to the new role. Smith joined Progressive Enterprises in 2006 from Woolworths. He led the consolidation, integration and subsequent growth of the business and has been instrumental in transitioning the company to the new Countdown brand and strengthening its retail offer to New Zealand customers. Smith, aged 54, leaves the retail sector following 37 years of service at Woolworths. He started his career in 1974 as a trainee in Perth, Australia. He then progressed to roles in store management and area management then later became state supply chain operations manager and national retail operations manager. Chambers will assume the role of chief operating officer for Progressive Enterprises on 7 March 2011 before transitioning to the role of managing director in July. Chambers joined Progressive Enterprises in 1979 in a junior store role and has risen through the ranks ever since. He was appointed divisional manager for Foodtown in 2001 and general manager for Foodtown/Woolworths in 2002. He has been in his current role as general manager of Supermarket Operations since 2008.

Woolworths ceo Michael Luscombe said: “We thank Peter for his many years of loyal service and for the enthusiasm he brought to every role he took on. We wish him and his wife Vicki well in their retirement. “As a core member of Peter’s executive team, Dave has played a key role in the transition of the business which now has great momentum. Dave will continue to guide Progressive Enterprises through its wonderful turnaround journey and we congratulate him on his well-deserved appointment,” Luscombe added. Progressive Enterprises operates 159 supermarkets in New Zealand under the Countdown, Woolworths and Foodtown brands. Progressive Enterprises is part of the Woolworths group. “Since the acquisition of Progressive Enterprises by Woolworths, managing director Peter Smith has led the company through a major $1-billion investment programme in new and refurbished stores throughout New Zealand under the new generation Countdown brand,” commented Katherine Rich, chief executive of the New Zealand Food and Grocery Council. “His commitment to open and positive supplier/retailer relationships has been widely appreciated by our members. “Peter Smith has devoted his working life to our industry and the Food and Grocery Council acknowledges his contribution. We wish Peter and his family all the very best for the future. “The Food and Grocery Council welcomes the elevation of Dave Chambers and our members look forward to working with him,” said Rich. l

New appointments at Kimberly-Clark Kimberly-Clark has announced the appointment of David Kirby to the position of general manager consumer sales, and Mark Elliot as customer supply chain manager. These two further appointments to the Australian New Zealand management team, reporting to managing director Glen Watts, follow the recent reorganisation of the company’s South Asia structure into two clusters – ANZ and ASEAN. The Kimberly-Clark global business review has also seen the consolidation of some of its manufacturing sites in Australia and North America. Kirby joins KCANZ from Bausch & Lomb where he was the managing director for ANZ and the vice president of sales for Asia since May 2009. He began his career at Unilever as a sales representative in 1982 and after 10 years with

the company in accounts, trade marketing and the field, joined Frito-Lay as national account manager. He went on to hold several senior sales roles including VP sales, Asia Pacific for Johnson & Johnson based in Singapore, sales director of Campbell Arnott’s and prior to joining Bausch & Lomb, sales director of George Weston Foods’ baking division. After over 20 years with Kimberly-Clark both in Australia and the region, Mark Elliot has been appointed customer supply chain manager for Australia and New Zealand. Elliot returned from Thailand last December where among a host of other great work, he led the end-to-end planning project for ASEAN, a Kimberly-Clark international initiative to successfully develop and implement best practice processes across multiple countries. l

David Kirby.

Mark Elliot. MARCH 2011 FMCG

news Foodstuffs plans new South Island distribution centre Foodstuffs South Island is planning to build a $45-million distribution centre at Hornby, the largest of its type in New Zealand. The new 25,000 square metre building will adjoin an existing 13,000m2 facility, situated in the emerging distribution hub bounded by Shands Road and Main South Road. This will be nearly double the company’s existing centre in Papanui. To accommodate the new development, Foodstuffs purchased 13 hectares of land adjacent to the existing Hornby centre. Steve Anderson, chief executive of Foodstuffs South Island, said the company’s present site in Papanui is too small to accommodate future growth, coupled with difficulties of access for heavy vehicles. John Mullins, general manager Wholesale Operations and Procurement (left), and Steve “This is a significant investment on our behalf, but Anderson, chief executive Foodstuffs South Island, survey plans on the new site. that is the confidence we have in the South Island. 11 metres and have improved work conditions with covered “We signalled back in 2005 that Papanui was too dock areas and larger yard areas. small and when we opened a new centre in Hornby in 2007 ”Staff facilities will also be considerably enhanced with plans it was an obvious signal that this would be the site of future for a state-of-the art cafeteria, training room and amenities development. Hornby is now the distribution hub of the block,” he said. South Island due to its proximity to State Highways north and Work is expected to commence late 2011 as the company works south, the new Southern Motorway Project, plus the Port of through the planning and consent stages with completion a Lyttelton,” he said. year later. Foodstuffs South Island head office will remain on Anderson said that while planning was in its very early stages, the Papanui property but the distribution centre land will be and with the size of the proposed centre, he was confident subsequently sold. that staff would retain their jobs. Foodstuffs moved from Moorhouse Avenue to a brand new “We want to future proof our entire distribution system for head office and distribution centre site in Papanui in 1971. This the next 25 years and this will allow us to do so. Papanui was site has been expanded on three separate occasions, in 1989, an older style centre with low racking height and much traffic 1993 and 1999 and presently covers 20,000m2. congestion, something that would only deteriorate over time. Foodstuffs remains committed to its very important Regional “This new facility gives us the chance to introduce much ‘greener’ energy and lighting systems, increase rack heights to Distribution Centre (RDC) in Dunedin. l

IT’S A NO DRAINER John West introduces a category innovation this month – No Drain Tuna. No drain, no pain, no mess – just succulent, tasty tuna chunks straight from the can. The new No Drain range, as featured on our cover this month, is the ultimate in convenience without compromising on taste. A first for the tinned fish category, No Drain Tuna contains only the liquid needed to maintain optimum moisture levels in the can so it can be enjoyed straightaway, without the need to pour off any excess. John West No Drain Tuna comes in a 130g can, available in three appetising variants: with a little Springwater, with a little Olive Oil, and with a little Brine. John West is also launching two other ranges, in 95g single-

FMCG MARCH 2011

serve cans: Tuna Chunks and Tuna Tempters. John West Tuna Chunks feature real chunks of tuna in three subtle flavours, each created to complement the natural tuna taste: Garlic and Soy, Chilli, Lime and Ginger, and Sea Salt and Cracked Pepper. John West’s Tuna Tempters are a good source of Omega-3 and protein. The flaked, single-serve tuna is ready to eat straight from the can making it perfect for school or work lunches. They come in four fabulous variants: Naturally Smoked, Onion and Tomato Savoury Sauce, Lemon and Cracked Pepper, and Zesty Vinaigrette. Ten highly appealing new products and category innovation continue to make John West the best. l

n ews Meadow Mushrooms opens $45-million expansion Canterbury-based company Meadow Mushrooms has opened the $45-million expansion of its production facilities on the outskirts of Christchurch. About 400 guests, including Governor-General Sir Anand Satyanand, gathered to hear of the company’s growth and expanded facilities, which have been completed in time to mark its 40th anniversary. In a speech, Canterbury Employers’ Chamber of Commerce ceo Peter Townsend described the company as a beacon in Canterbury’s business scene and the multimillion-dollar expansion as the cornerstone of a 10-year growth plan. Meadow Mushrooms chief executive Roger Young says the development demonstrates the company’s confidence in the future market and its commitment to the community. “The expansion creates substantial additional employment, makes the company one of the largest employers in the region and firmly secures its place as a major Canterbury business,” he says. “The market for quality fresh mushrooms has grown, the company’s been producing at capacity for a number of years now, so the expansion had to meet that demand.” The business was established in Cyprus in 1968 by businessman and former senior politician Philip Burdon and his business partner (the late) Roger Giles. Both men invested $17,000 in 1970 in the New Zealand company, which has since selffunded 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. These days, an average of 20 tonnes of mushrooms are picked at Meadow Mushrooms 364 days a year. Meadow Mushrooms board chairman Philip Burdon says the company has faced big challenges. “Meadow Mushrooms has certainly not been an overnight success story,” he says. “Now, however, the company can legitimately claim to have established one of the largest and most sophisticated agribusinesses in the country.” Young says growing mushrooms isn’t easy and doing it successfully on a commercial scale is difficult, but the expanded facilities help set the company up for the future. “The art of mushroom growing has become very technical and science-based, so this expansion includes world-leading innovative techniques. The new technology includes composting moved into specialist buildings designed to capture and treat any contaminants,” he says. “All key processes are computer controlled and monitored. The level of recycling has been enhanced, with ammonia gas converted to a nutrient input and all waste water returned

to the process. Rainwater is being collected from roofs and ‘hard-stand’ areas for use in the composting process to ensure we become the most environmentallysensitive farming industry in the country.” Environmental sensitivity is important to the company – and the facts prove it. Governor-General “It takes less than 30 litres of water Sir Anand Satyanand. to make one kilo of mushrooms. In comparison it takes about 75 litres to grow a kilo of potatoes, about 500 litres of water to grow a kilo of wheat, in Canterbury about 12,000 litres to make a kilo of milk powder. So this is a really sustainable form of food production – it doesn’t take up much land, recycles waste from other food production industries and has a very, very small footprint.” He says the expansion includes the overhaul of composting, with large tunnels and bunkers built to increase production capacity and enable composting in a bulk format. Another major part of the expansion involved the establishment of a modern, high-tech growing farm based on the Dutch shelf system and the construction of a new purpose-built pack shed. “This expansion ensures Meadow Mushrooms will be able to meet growing demand and dramatically improve efficiency and productivity,” says Young. The company is one of the country’s largest recyclers, using 23,000 large bales of wheat straw, 7800 tonnes of chicken litter each year and generating 70,200 cubic metres of spent mushroom compost for use in the horticulture and agriculture sectors as potting mixes and soil enhancers. Meadow Mushrooms is a totally integrated operation with its own spawn production laboratories, canning factory and growing facilities, outsourcing only its frozen products division. l

MARCH 2011 FMCG

news Foodstuffs’ crisis management team responds quickly to EQ Following the recent earthquake, which struck Christchurch on 22 February around 1pm, many injuries and fatalities were reported. The damage to buildings, roads and infrastructure in addition to the loss of power and water around some parts of the city presented major obstacles and challenges for suppliers and distribution centres. Within just four hours after the earthquake struck, Foodstuffs’ crisis management team had formed and began communicating updates about its operation in the region. Steve Anderson, ceo Foodstuffs South Island said: “We are committed to ensuring continuous supply of essential food and water to Canterbury residents. At this stage a number of Christchurch Foodstuffs supermarkets are currently open with more expected to reopen later today. We are working hard to open further stores as a matter of urgency. “Our distribution centres suffered only minor damage and we intend to resume the distribution of food to our retail stores today. “We are relieved that there have been no major injuries or deaths reported in any of our stores. There have been three minor injuries reported.” All office and Hornby/Papanui distribution centre (DC) staff were evacuated and safe. Hornby DC and Papanui DC have held up well with just minor stock damage. Foodstuffs’ Dunedin DC took on some additional workload to assist both Papanui and Hornby DC in the short term. Tuam Street CashnCarry sustained some major damage. Staff and customers were safe but the site was closed on that day. High demand for basic products Suppliers were urged to prepare for a large demand for basic everyday products such as water, toilet paper, nappies, wipes, anti-bacterial products, canned foods, pet foods, baby needs, cleaning products and sanitisers. Rolleston and Ashburton New Worlds were being supplied by Dunedin, so Dunedin’s demand was expected to increase significantly. Just one day after the earthquake, Foodstuffs had eight New World stores open while four were closed in the Canterbury region. Two of its four PAK’nSAVEs were open; and all but one of 12 Four Square stores were open in the region. Within two days of the earthquake, Anderson released another statement. “Foodstuffs can confirm the stores that are open are fully

FMCG MARCH 2011

operational and have sufficient stock. We are currently working around the access issues within the CBD and our freighting team is working hard to overcome the challenging conditions they are facing to ensure continuous supply to our stores. “This is making the supply chain slightly slower but still effective, which means customers will be able to purchase essential items such as food and water. Stores are limiting the number of staple products customers can purchase at any one time to ensure everyone has an equal opportunity to purchase the supplies they may need. “Understandably there are some queues at our supermarkets due to the fact that very few stores are open, we have reduced numbers of staff in store and our customers’ safety is paramount. “Foodstuffs can confirm that supply to Dunedin and the wider South Island is currently unaffected. “We are working on appropriate relief fund donations but at this time our priority is getting our supermarkets open and ensuring a steady supply of essential items to our customers.” Further updates were published on the website www.foodstuffs-si.co.nz FGC in touch with Civil Defence Within just two days after the earthquake, Food & Grocery Council ceo Katherine Rich said: “FGC continues to brief Hon Paula Bennett, who has been charged by Cabinet to oversee food coordination and Government officials on the wider food industry’s response. We are regularly in touch with leaders of Civil Defence and the Salvation Army. “Both the Prime Minister and Hon Paula Bennett have publicly said in their interviews that they are very happy with the response from the grocery sector. They are confident that through your combined efforts as grocery suppliers that New Zealand has a robust and resilient food network. “Concurrently FGC is in constant contact with our retail partners to get their updates. The objective is clearly to assist our retail partners with what they need to get as many of their stores back in operation and stocked.” The FGC was also collecting offers of assistance and directing enquiries to the Salvation Army. Among the first donations were two trucks of rice (40T) from Sunrice; significant amounts of canned product from Heinz Watties, 240 pallets of water from Coca Cola Amatil and pet food for cats and dogs from Masterpet, while Fonterra was distributing water and UHT milk. Johnson & Johnson worked with the Red Cross sending sutures, infection control items and skin staplers. l

n ews Lion Nathan MD to lead National Foods in Australia Peter Kean, managing director of Lion Nathan National Foods’ New Zealand and Global Wine businesses, has been appointed managing director of Australian food and beverage giant National Foods. Kean will start his new role on 1 April 2011. In 2009 National Foods and Lion Nathan merged into one of Australasia’s largest food and beverage groups after Kirin Holdings Company completed its purchase of Lion Nathan. National Foods is one of Australasia’s largest FMCG companies, with annual turnover of approximately A$3.5 billion, employing over 4000 people and producing category-leading brands in milk and dairy beverages, juice, fresh dairy, cheese and soy. Kean will take over from Andrew Reeves, who is leaving the business to take on the role of CEO for George Weston Foods, based in Sydney. Kean has been with Lion for almost 25 years, the last six as managing director. In late 2010 his leadership responsibilities were extended with the integration of Lion’s Global Wine business into Lion Nathan New Zealand. Rob Murray, chief executive of Lion Nathan National Foods said “Under Peter’s leadership, Lion Nathan has successfully implemented a number of sustainable growth strategies and transformational initiatives including the evolution of the NZ

business to a multi-beverage model comprising New Zealand’s bestloved beverage brands. “Peter has relentlessly focussed on innovation, brand health, sales execution, increasing customer engagement and developing a manufacturing excellence platform. Peter Kean. “That same commitment will now be applied to National Foods as the organisation continues to invest in strategic assets and to create a business fully focussed on the needs of customers and consumers. “There is no doubt the current operating environment for National Foods is a challenging one, not least of which because the conditions in both the dairy and juice sectors remain very challenging for farmers and producers alike. Peter’s experience over the past five years in transforming the New Zealand business in similarly challenging circumstances will be critical going forward. “While Peter’s appointment sees him leaving Lion’s New Zealand operation, his exceptional talents and extraordinary energy will continue to benefit the wider Lion Nathan National Foods business concluded Murray. l

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MARCH 2011 FMCG

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

POULTRY Best priced chicken will always be barn raised and still has a large following, however more and more consumers are looking to free-range chicken which is now readily available from the larger producers. Shoppers at the higher end are often looking for something a little more exclusive so check out the organically farmed free-range chicken from Rolling Hills. Duck portions make interesting additions to a poultry line.

FISH IN ITS PRIME New season kumara. Farmed venison, beef and fat lamb at a price. Blue cod, snapper and tuna; squids and crabs.

COMING IN Red cabbage and Brussels sprouts. New season pears, apples, feijoas and kiwifruit. Wild fungi and the first truffles if we are lucky and rich. And best of all those wonders from the deep south, mutton birds and Bluff oysters.

GOING OUT Our apricots, nectarines and peaches. New Zealand strawberries and beans.

SHOT TO BITS Cherries.

With the settled weather since the cyclones the inshore fisheries have had a field-day, however be aware that this could mean the quota for some species may run out earlier this year. The main snapper season will be about over by April and with plenty in the markets this month though the price is still a bit steep – blame the Aussies. It is the same for gurnard and sole, plenty around but the price is up. Tarakihi is in the middle of its main catching season so you can expect to see plenty of this good all round fish in the market. Trevally and kahawai are also plentiful at this time of year; and are greatly underrated inexpensive fish species. Flounder are in good supply until late autumn and reasonably priced. Kingfish in nice condition have been in the market recently and are likely to be around for the next month or two. Tuna quality is tops right now and at a lower price than snapper. The Pacific oyster season is back on track after the spat. These shellfish just get fatter and fatter from now on but there may very well be a shortage in the middle of the season; blame herpes – more on this in the next issue. Greenshell mussels are fat at this

time of year, inexpensive and with the best meat-to-shell ratio.

MEAT World commodity prices are at all-time highs – this includes New Zealand meat and if it were not for our high dollar domestic meat prices would be even higher.

BEEF Local trade schedules have reached very high levels with prices for beef $1/kg ahead of last year. High prices at this time of year are unusual, and local consumers are starting to complain about high meat prices hurting the family budget.

LAMB February saw early highs in lamb schedules as the strong international demand for product continues, with many schedules well over $6/kg at time of writing and what’s more the trend is – you guessed it – rising. This is a whopping $1.70/kg ahead of last year and do not expect any improvement.

MUTTON And if you think beef and lamb are bad what about mutton? It was up between 50%-70% on last season in the last quarter of 2010.

FARMED VENISON Venison supplies are still a little short despite this being the season and the schedules are still high and ahead of the five-year average. The trend is steady at $7.30/kg and is starting to look good against lamb.

FRUIT Volumes and varieties of fruit will be tailing off towards the end of this month but this is still a great time for New Zealand fruits. Other fruits though will start to come on-stream; passion fruit have arrived and limes have finally returned to the

marketplace and the first New Zealand kiwifruit will show up at the end of March. Rock melon and watermelon volumes have increased and prices have come back markedly. Kiwi pears are well in and our early varieties of apples are here with more strains coming on-stream as the month progresses. By mid April the choice really takes off. The number of stone fruit varieties available will diminish as the month progresses, as will the volume. Still available will be the later varieties mainly from the South Island – Omega and Sungold plums; Fantasia and Summer Blush nectarines; Genevieve and Southern Cross apricots; Peacherines, Golden Queen and Black Boy peaches from Hawkes Bay; Yumyeong and Marchesa peaches

from the south. Cherries are pretty well shot to bits. Raspberries will be around but the price will increase as volumes drop back. Blackberries and blueberries will be plentiful but will finish in April. Avocado volumes will start to drop by the end of the month, as will the volume of lemons and oranges, but there will be plenty of imported citrus. From offshore – mangoes and pineapples are the best buying and of very good quality. Also of top quality are bananas, including the fair trade and organic fruit, and pomegranates from California.

VEGETABLES By the end of March many of the vegetables we have been enjoying in abundance will tail off, but others will be starting. Courgette, aubergine and sweet corn volumes will peak and the prices will be as low as they will get this year, but

volumes will drop back in April. Capsicums will hold on until May, but the New Zealand tomato crop will fall from its peak early in the month. Runner beans are in the marketplace, as are the other varieties of beans, however all the New Zealand grown beans will be finished by mid April. There will be plenty of beetroot and new season kumara for the next couple of months. All the annual herbs are in full swing and supply should be good over the period, as will be salad leaves and rocket. New potatoes are finished but the traditional ‘Maori’ varieties are here for those who like something a little different. Red cabbage will turn up in the market later this month as will the first Brussels sprouts from the central North Island. There will be lots of good quality pumpkins around and leeks will be of better quality from mid March.

Largest tomato harvest for some years Wattie’s in Hastings has recently started processing this year’s tomato crop, and with over 40,000 tonnes expected to be harvested, it will be the largest crop for several years. North Island agricultural manager Ivan Angland says so far the crop has benefited from an excellent growing season. “Tomatoes are the

company’s single biggest crop, used in more than 200 product lines ranging from tomato sauce and baked beans to pesto style and Indian tomatoes. “To ensure consumers get the best and freshest quality, Wattie’s tomatoes are normally in the first stage of processing within two hours of being harvested.” The tomatoes are a proprietary variety which has been bred for disease resistance, peelability, fruit quality and yield. The crop is grown on 450 hectares across Hawke’s Bay. l

march 2011 FMCG

b e ef & la m b

Optimising meat quality Guest writer Dr Nicola Simmons explains new processing systems. Dr Nicola Simmons, general manager of Carne Technologies.

The New Zealand meat industry has a reputation for using innovative technologies to ensure the highest level of meat quality. It was Kiwi scientists who, back in the 1970s, discovered that cooling carcasses too rapidly after slaughter could toughen meat. To overcome the problem they developed a time/temperature regime known as “conditioning”, and later discovered high voltage electrical stimulation of carcasses could accelerate conditioning. In the late 1980s our scientists and engineers also began to develop new ways of stunning sheep and cattle, which were both humane and met the varying requirements of overseas markets. Although electrical stunning and electrical stimulation were originally considered separate processes, more recent scientific developments have shown they are part of a continuum of processing options that can be varied, mixed and matched to fulfil a wide range of meat company and retailer requirements. Carne Technologies is a leader in designing these processes. Guided by the scientists and technologists who were involved with the original developments, the company’s interests span the whole value chain from arrival of animals at the processing plant through to meat handling, packaging and display systems that optimise retail shelf life. In particular, Carne Technologies specialises in tailoring humane slaughter and meat quality enhancing systems to match specific meat company parameters and satisfy export market requirements. And what is ideal for export also enhances the local market. Carne Technologies designs processing systems for abattoirs to ensure they achieve desired tenderness and shelf life outcomes. Ultimately consumer satisfaction is determined by the eating quality of meat, and Carne Technologies uses a battery of tests to assess whether processing systems meet their quality targets. However, it is not just processing that determines a great eating experience – farmers and retailers also have a key role to play in producing the highest quality meat. For that reason Carne Technologies is pleased to be involved in two competitions recognising the roles of all players in the value chain – the ‘Steak of Origin’, and ‘The Glammies’. Our role is to evaluate each competition entry using

FMCG MARCH 2011

Ex All Black Richard Loe is on the judging panel for this year’s Glammies and Steak of Origin competitions.

a series of measurements carried out in our laboratory under strictly controlled conditions. These give an accurate indication of eating quality. Entries with the best scores go forward to the semi-finals and finals for tastetesting by a panel of judges. These competitions provide a valuable snapshot of the best New Zealand beef and lamb sold locally. They give producers an opportunity to see exactly how their animals are performing in terms of eating quality, and for processors there is a clear indication of whether or not their processing regimes result in real customer satisfaction. Publicity around these events also highlights New Zealand’s unique capability in high quality meat production and processing. It reassures consumers both here and overseas our industry is still at the forefront of developing technologies that ensure a great eating experience every time. Carne Technologies is proud to be a part of that. For more information about the Steak of Origin or Glammies visit the ‘Retailers’ page on www.beeflambnz.co.nz. For more information about Carne Technologies visit www.carnetech.co.nz.

A harmonious addition to the Red Box range

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

HTR_ING_10163

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.

What’s Hot ABC Hot Chilli Sauce This is the classic South East Asian Chilli Sauce for those that like it hot without the sweetness and the seeds. ABC, world famous for its Kecap Manis, has two versions of Chilli Sauce available in NZ – Sambal (hot) and Extra Hot Chilli in 340ml glass bottles. These sauces are halal, gluten free and suitable for vegans. For more information on ABC Sauces 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

the best shave for your skin Schick HydroTM is the first range of razors that work to hydrate your skin as you shave. The range, available in 3 and 5 blades, offers many firstto-market technologies, including a water activated gel reservoir that lasts up to twice as long as regular lubricating strips, EasyGlideTM Blades with skin guards that smooth your skin to reduce irritation and a flip trimmer (Hydro 5 only) that allows for precise trimming of facial hair. Hydro delivers a revolutionary shaving experience, going beyond hair removal to care for men’s skin. For more information contact 0800 803 837 or visit www.facebook.com/schick.nz

New Wrigley EXTRA Professional Calcium Chewing Gum

What’s Hot

Calcium should be on every Kiwi’s agenda: osteoporosis is a major health issue in New Zealand, affecting more than half of women and nearly a third of men over the age of 60[*]. New EXTRA Professional Calcium is a great way to add a little extra calcium to your diet: chewing two pieces of EXTRA Professional Calcium for 20 minutes each day will give you 10 per cent of your RDI of calcium. With the same great minty taste of regular sugarfree gum, Extra Professional Calcium gives you a little bit extra. For more information contact 0508 974 453.

[*] Osteoporosis New Zealand

FMCG MARCH 2011

What’s Hot Innovation, quality, convenience and motivating activations No mess, no pain NO DRAIN! • Contains only the liquid needed to maintain optimum moisture levels – no need to pour off any excess • Three appetising ﬂavours: with a little Brine, with a little Springwater and with a little Olive Oil • A good source of Omega-3 and protein • All natural ingredients

John West Chunk Style Tuna in Oil • Chunk Style Tuna combined with subtle ﬂavoured oils and ingredients you can see • Created to increase consumption (from lunch to dinner occasion) • Three appetising ﬂavours that complement the natural tuna taste - Garlic & Soy; Chilli, Lime & Ginger; and Sea Salt & Cracked Pepper • A good source of Omega-3 and protein • All natural ingredients

John West Tuna Tempters

What’s Hot

• Four appetising ﬂavours: Naturally Smoked, Onion & Tomato Savoury Sauce, Lemon & Cracked Pepper and Zesty Vinaigrette • A perfect snack for school or work – ready to eat anytime, anywhere • A good source of Omega-3 and protein • All natural ingredients

Marketing Support John West Tuna is backed with “The Personal Best Drive” – an integrated above and below the line campaign that includes Sales activations, extensive sampling programs, in-store media, consumer promotion, TV, print and online ads.

DRIVE For more information contact your KML Sales Representative or phone KML on (09) 475 0940.

MARCH 2011 FMCG

GF TREETS GLUTEN FREE FROZEN RANGE

NE W

What’s Hot Dove men + Care

gf treets is an innovative new range of gluten free battered products. Perfect for stores looking to build a gluten free frozen category the range includes Gluten Free Battered Fish, Southern Style Coated Chicken Strips, Mini Hotdogs and Donuts. The range has been enthusiastically embraced by gluten intolerant consumers. For more information please contact the Sales Manager: Golden Goose Foods

Phone: 03 384 4039 Mobile: 021 226 6469 Email: info@gftreets.co.nz Web: www.gftreets.co.nz

This month, Dove Men + Care will launch a NEW range of skincare and cleansing products specifically designed to help improve men’s skin condition and addressing one of the key causes of skin discomfort. The range will include bodywash, bar and facial cleansing products, along with a clever shower tool designed to exfoliate and cleanse the skin effectively. New Dove Men + Care - For total skin comfort with the deep cleansing refreshment men want.

What’s Hot

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

FMCG MARCH 2011

muesli any way you want it An exciting new addition to the Vogel’s range of naturally healthy, low GI bread. New Vogel’s Fruit & Oats Muesli Bread is a deliciously different way to enjoy Vogel’s for breakfast. Baked in the classic Vogel’s way, with a chewy crust and crunchy texture, full of oats and fruit, it’s perfect for toasting at breakfast time. Available on shelf from 28 March 2011. For further details please call 0800 100 538

What’s Hot No More Basic Lip Balm! Introducing Baby Lips from Maybelline New York A new star in the Lip Balm Category has arrived, Baby Lips, a Cellular Repair Lip Balm that has rocketed to success internationally where it has been launched to date reaching 3rd market position in Taiwan*1 and 4th market position in Japan during media!*2 The Secret? • Only our exclusive clinical strength formula with SPF 20 protects and moisturises lips for 8 hours. • After 4 weeks lips are deeply repaired. • Available in 4 delicious flavours for lip balm users who on average re-apply 3 times a day*3! • Anti-Oxidant Berry, Energizing Orange, Smoothing Cherry & Relieving Menthol • With uber modern graffiti styled packaging a Maybelline cult collectable product is born! With a full support plan including TV, magazines, online, sampling nationwide and impactful point of sale make sure you order today to capture this opportunity! 1 SRI Lip Balm Combined (GMS+DRUG/L), YTD December 2010, Unit Share of T. Lip Balm. 2 ACNielsen Lip Balm Combined, YTD December 2010, Unit Share of T. Lip Balm. 3 TNS Australia Cosmetics U&A study, 2010.

GARNIER PURE ACTIVE TREAT AND COVER!

What’s Hot

The new innovation from Garnier Pure Active spot roll on has arrived! This handy new roll-on not only treats acne, but conceals those unsightly blemishes while it works. More great innovation in the youth segment from Garnier – this handy roll on gives optimal coverage of spots whilst letting skin breathe. The revolutionary metal roll-on applicator is designed to target individual spots – cooling/treating and concealing a targeted area on the face. Simple to use and easy to carry with you for the day to soothe and treat. With dedicated TV/print and online support, and on-going brand support on this youth segment from Garnier this is another great addition to the already strong performing range. Available in one shade – Light Beige, order from the 21 March. SRP of $13.99. Replaces current Pure Active Roll on.

Contact your local area manager to make sure you get yours today!

MARCH 2011 FMCG

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Sweet

innovations Whatâ&#x20AC;&#x2122;s new in the chocolate and confectionery aisles? FMCG talked to some of the stakeholders in the New Zealand industry and examined international trends in this category.

Highlights from ISM 2011 in Cologne, Germany. Right: Peter Riegelein at ISM2011.

FMCG MARCH 2011

confec ti on er y

THE BREAKDOWN Current MAT to 02 January 2011

remium Easter chocolates, ‘tongue tattoos’, cheesecake-flavoured gummies and ‘sushi’ confectionery were among the novelties on display at ISM 2011 – the largest international trade fair for confectionery, sweets and biscuits. ISM 2011 was held in Cologne earlier this year and about 32,300 trade visitors from nearly 150 countries attended. Among the exhibitors, the world’s leading manufacturer of high-quality cocoa and chocolate products, Barry Callebaut, unveiled a new range of innovative decorations, fillings and inclusions for the confectionery industry. Focusing on exciting, novel textures, Barry Callebaut announced several new products to complement its already extensive range, including a variety of caramelised nuts and crunchy biscuit textures such as caramelised almond slices and ‘cocoamaretti’.There is a growing trend to use more textures to stimulate the taste experience, said the experts at Callebaut. Answering another trend towards aerated, smooth fillings, Barry Callebaut’s new range of fillings will allow consumers to explore new, intense flavours. The classic filling

‘Tintoretto’ is now available in a dark cocoa and caramel flavour, while the new lightweight ‘Mousse Filling’ is bursting with chocolate and hazelnut taste. The ‘Creamy Filling’ also offers a longer shelf-life alternative to butter cream and can add exciting smoothness to end products. Aeration can increase a filling’s volume by 30%-50%, which not only makes it lighter, but also reduces the number of calories per serving without losing the full taste sensations. Even better, aeration ensures a less fatty taste and a very pleasant mouth feel. With its unique composition, Barry Callebaut’s fillings guarantee long shelf life, perfect technical compatibility and good fat bloom resistance.They are low in trans fatty acids and very easy to process. Last but not least, they leave plenty of room for personalisation: some of the fillings come in a neutral flavour, ready to be customised with colouring or flavouring agents of choice.

Rising costs on the horizon This year 1494 suppliers from 64 countries took part in ISM, presenting a comprehensive international overview of confectionery and snack items. The mood in the sector is still

Total chocolate confectionery: $249.792m Value % Chg vs YA 4.1 Total Bar/Chunky: $45.552m Value % Chg vs YA 9.9 Total Block Chocolate: $86.088m Value % Chg vs YA 6.4 Total Easter Confectionery: $26.704m Value % Chg vs YA 6.0 Total Boxed: $45.658m Value % Chg vs YA -0.9 Total Treat/Fun Pack: $20.886m Value % Chg vs YA -8.6 Total Family Bags: $11.382m Value % Chg vs YA 1.9 Total Multipack: $6.106m Value % Chg vs YA 3.9 Total Novelty Bar: $2.225m Value % Chg vs YA 22.6 Total Handy Bags: $1.250m Value % Chg vs YA 15.4 Total Card/Tub Packs: $1.418m Value % Chg vs YA 5.5 Total Jumbo Bags: $1.933m Value % Chg vs YA 40.6 Total Gift Pack: $586,955 Value % Chg vs YA -25.7 Total Christmas Confectionery: $1051 Value % Chg vs YA -63.9 Total Bulk Bags: $16 Value % Chg vs YA -93.0 * ACNielsen New Zealand ScanTrack (Databank)

MARCH 2011 FMCG

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positive and optimistic, despite the rising costs of raw ingredients and energy, said an ISM spokesperson. “As a result of the worrisome situation in terms of raw ingredients, there was very strong interest in taking part in discussions,” said Tobias Bachmüller, chairman of the International Sweets and Biscuits Fair Working Group and managing partner of confectionery producer Katjes Fassin. As in previous years there was strong demand for reduced-sugar confectionery and confectionery products with added benefits and new flavours. A Swiss company showcased a new line of chocolates for children that contains 40% less sugar. Honey is also being used to lend sweets and sugar confectionery nostalgic notes, for example, in the form of honey and lemon or honey and herb sweets. The premium sector shone with light creations, intensive flavours and new combinations that melt in your mouth. Here the trend is towards classic, sophisticated desserts being transformed into products for the store shelves. Consumers can look forward to marzipan bars with rose water or raspberries and novel 24

FMCG MARCH 2011

crème-brûlée-flavoured for example.

products,

What’s new in New Zealand “Lindt Chocolate continues to grow ahead of the Blocks and Boxed categories in the marketplace whilst adding value and profitability to Blocks, Boxed Chocolate & Easter categories, as consumers trade up to premium chocolate,” says Brandlines business manager Ken Davis. “Lindt Blocks growth is 28.6% (Latest QTR in TKA – Aztec) and Lindt Boxed growth is 2.5% (Latest QTR in TKA – Aztec),” he adds. The ‘NEW’ Dark Caramel Excellence is set for launch in April and will drive further growth within the Blocks category, with a highly appealing new flavour combination to target mainstream shoppers. Excellence Dark Caramel is designed to encourage consumers to expand their repertoire within the Excellence Dark range. In Boxed Chocolate the Lindt Lindor Dark Assorted 150g has been added to the Lindor family with the same delectably smooth centre in four delicious flavours, Raspberry, Mint, Dark, and 60% Cocoa all encapsulated in smooth dark chocolate. “This proved popular during gifting occasions,” says Davis. He adds: “The Lindt Lindor 150235g ranges also had a pack refresh, and I think that the new packaging is stunning and communicates

‘premium’ to consumers. The Lindt Gold Bunny Milk 100g is now the number six ranked dollar value sku at Easter in New Zealand with $746,000 worth of retail sales in TKA (Aztec).” Look out for the ‘NEW’ 200g range of Lindt Gold Bunnies available in 2011. In the past 12 months, Brandlines has also launched Werther’s Original Éclair Family Bag; Mentos Aqua Kiss Alaskan (Peppermint) & Mentos Aqua Kiss Pacific (Spearmint); and Mentos Aqua Kiss Acai Berry Watermelon, along with two multipacks. “Werther’s Original Éclair Family Bag has performed extremely well and has contributed to the overall Werther’s Family Bag dollar growth of 30% (Aztec data MAT to 9/1/2011),” says Brandlines brand manager Janine Dench. “The Werther’s range was advertised on TV in 2010, which contributed to the outstanding growth figures.Werther’s will be back on TV in 2011,” says Dench. Mentos Aqua Kiss has brought new innovation to the Gum category with Mentos Aqua Kiss Acai Berry Watermelon being the first two-layered stick gum to launch in New Zealand. “Mentos Gum has experienced 24.5% dollar growth and now holds 5.6% dollar share of the total gum category (Aztec data MAT to 9/1/2011),” says Dench.

with

NEW Launching

MARCH 2011

Tic Tac Intensity Mint Media Support 2011 March

April

May

June

July

Launch TVC Instore POS

Product Details Description

Unit Barcode

RRP (Inc GST)

Inner Barcode (24g x 24)

Tic Tac Intensity 24g

93698313

$2.29

9300698500266

For more information, contact your local Tic Tac Representative or call FNZ Brands Customer Services on 0800 222 196

cate go r y c h e c k

She adds:“Chupa Chups singles are the No.1 selling Stick & Roll product in New Zealand and are growing at 25% (Aztec TKA $ growth & unit sales MAT to 9/01/2011).” Chupa Chups launched the Chupa Chups Tongue Painter singles in April 2010. “It is important to keep innovating when it comes to kids’ confectionery,” explains Dench. The Chupa Chups brand will continue to be supported by media in 2011. The ‘Chuck’ Bungy TVC, which was filmed in Auckland, will be aired again in March 2011. Chuck also has over 93,000 fans on Facebook. Chupa Chups and the new 3D movie RIO are teaming up in 2011 with Chupa Chups advertised in cinemas (before the RIO movie) from 7th April for four weeks. Chupa Chups & RIO merchandise packs will be up for grabs for consumers to win via Chuck’s facebook page in April and May. “We are planning to launch at least two more fantastic Chupa Chups products in 2011. Mentos Rolls & Gum will continue to produce innovative products in 2011 as well,” says Dench.

Importance of innovation Tic Tac, the iconic mints brand known and loved by New Zealand consumers since the mid 1970s, is continuing to invest in product innovation to bring freshness to the 26

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Pocket Packs category. In March, Tic Tac is launching ‘Intensity Mint’, a strong flavoured mint designed to be distinct from the other four current Tic Tac core flavours. Deejay O’Dowd, trade marketing manager for Tic Tac distributor FNZ Brands, says: “Tic Tac understands the importance of innovation in the Pocket Packs category. In 2009, Tic Tac increased its pack size from 18 grams to 24 grams at a time when many confectionery manufacturers were decreasing pack sizes. The following year Tic Tac launched the very popular ‘Citrus Twist’, which has well exceeded expectations in adding incremental sales to the brand. As Intensity Mint is complementary to the current four flavours of the Tic Tac range, it is expected to grow the Tic Tac brand even more. “Tic Tac is currently the #2 Pocket Packs brand, with value growth of 48% (Nielsen TKA Value sales current MAT to 30/01/2011),” says O’Dowd. Tic Tac Intensity Mint will be quite distinct as the pills will be coloured blue, with the functionality of a stronger breath freshening mint. Tic Tac Intensity Mint brings novelty to the Pocket Packs category and will provide great standout on shelf because of the intense blue colour. O’Dowd comments: “Major trends indicate that consumers have a desire for experiences that draw them into a new feel sensation.” The Tic Tac range attracts a broad demographic, catering for people

that have known and loved the brand for many years, whilst at the same time bringing in new consumers looking for ‘something fresh and entertaining’. Ferrero also continues to grow its unique, premium products in the New Zealand market. Instantly recognisable, Ferrero has become an iconic brand in the boxed chocolate market. “Boxed Chocolates is worth over $50 million per annum and Ferrero continues to add value (+16.6% value growth) despite Boxed Chocolates declining at -2%**,” says O’Dowd. Ferrero has been able to grow by gaining distribution for its premium products, whilst driving sales outside of Christmas with other events such as Easter and Mother’s Day. O’Dowd comments: “The market for Boxed Chocolates in 2010 was difficult, but with the unique range of Ferrero products we have been able to increase both value growth and market share**. Importantly Ferrero remains the number-one premium boxed chocolate brand**.” The Ferrero range includes the ever popular Ferrero Rocher, a milk chocolate & hazelnut speciality. There is also Ferrero Rondnoir, a dark chocolate creation for those with a discerning palate. Ferrero Raffaello is a light treat made from almonds and delicate milk cream, rolled in coconut. Finally there is Ferrero Collection, which is a selection of pralines including Ferrero

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Rocher, Ferrero Rondnoir and Ferrero Garden. O’Dowd notes that consumers require a variety of pack sizes and flavours when selecting boxed chocolates. “Boxed chocolates can range from a small, self indulgence treat right through to an impressive gift. The strongest growth for Ferrero is coming from the Rondnoir, Raffaello and Collection range of products. It reinforces that consumers desire a premium product that satisfies many needs, whether it be for a special occasion or everyday occurrence.” Ferrero is sold in more than 40 countries across five continents. **Source: Nielsen TKA Value sales current MAT to 30/01/2011.

New Zealand’s first calcium-fortified gum Wrigley is a key manufacturer within the large nonchocolate segment of the Confectionery category holding a 25% share of non-chocolate confectionery. “This share strength in NCC translates to Wrigley being the #4 ranked manufacturer in Total Confectionery (AZTEC MAT to 30/01/11 value),” says Phillip Harlett, customer marketing manager – The Wrigley Company (NZ). 28

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Wrigley’s market performance is sustained and grown through a focus on bringing innovative products to the market based on sound shopper and consumer insights. Wrigley’s key focus is within the Chewing Gum and Mints segments, ensuring that total segment growth is sustained through high value innovation. More recently this success in driving segment growth has been delivered through the Launch of 5 Gum and ongoing flavour innovation in Eclipse Mints. Both products show that excellent consumer insights can be translated to products that deliver growth. Momentum within the Gum segment is also being delivered through a revitalised Extra Tab Gum range. “New packaging and a renewed communication programme centred around the Eat, Drink and Chew theme will continue to deliver strong sales performance through this core gum brand,” says Harlett. The year 2011 will see this level of innovation and investment continue. “Extra Gum will deliver growth through the revitalisation of the Extra Professional range of gum products. A key part of this strategy will be the launch of the first calcium-fortified gum in New Zealand,” Harlett reveals. “A massive media campaign will communicate the benefits of using Extra Professional Calcium to help deliver your RDI of calcium.” Meanwhile, 5 Gum will introduce

the next phase in “stimulating consumer senses” with the launch of 5 React. “Two gum products delivering sensations that vary from person to person will be supported by a 360° communication campaign highly targeted at ‘Generation C’ consumers,” says Harlett. Eclipse Mints will see the “intense” flavour consumer need satisfied through Eclipse Intense. “Wrigley’s active portfolio management will ensure that as these innovations are launched, those products that are no longer actively contributing to the segments are reviewed,” comments Harlett.

Iconic brands Cadbury continues to lead the confectionery market in New Zealand with a portfolio of iconic and well loved brands including Cadbury Dairy Milk, Crunchie, Moro, Roses and Favourites. In recent years there have been shifting consumer trends towards everyday indulgence and the establishment of chocolate as a key part of sharing and snacking occasions with friends, creating the opportunity for the launch of Cadbury Bitesize in September 2010. Cadbury Bitesize has created new consumption occasions and experiences for consumers as the product format is an easier, more relaxed way to share chocolate with friends. The range currently includes four flavours: Caramello Nibbles, Giant Buttons, Crunchie

confec ti on er y

Rocks and Clusters. “The ‘Bitesize’ segment in the latest 26 weeks Value Sales is growing at +26% (ACNielsen, Supermarkets Scan Data to 02/01/11) versus the same period a year ago,” explains Cadbury’s category development manager Victoria Stewart. Recent market growth of the adult confectionery segment with strong performances from Cadbury’s candy brands Pascall and The Natural Confectionery Company supports the insight that adults love the fun of eating jelly candy but seek greater variety that speaks to the more mature palate. The Bliss range of irresistibly luscious jellies with fruity, juicy centres was launched in May 2010 under the Natural Confectionery Company brand, targeting adults and older families. The Bliss range includes two flavours: Berry Bliss, which combines a delicious mix of strawberry, blackcurrant & raspberry

flavours and Tropical Bliss, which includes a luscious mix of passionfruit, mandarin & pineapple flavours. “Since launch, The Natural Confectionery Company Bliss range has delivered over $1 million (ACNielsen, Supermarkets Scan Data to 02/01/11) in retail sales,” says Stewart. Easter is a huge season for the confectionery category and Easter stock can usually be found in store 12 weeks out. “This year Cadbury has a point of difference: New Zealand’s first ‘Fair-trade Easter egg’, which has been manufactured at the Cadbury factory in Dunedin,” reveals Stewart. The Cadbury hollow 65g egg will be available in all stores during Easter. Kiwis love chocolate covered marshmallow, especially at Easter and for the 2011 season Cadbury will deliver 12.4 million ‘Marshmallow Eggs’ and ‘Marshmallow Hot Cross Buns’

to stores. That’s approximately three for every person in New Zealand.

Quality important for gifting occasions “We have a strong, loyal consumer base for the unique Guylian roasted hazelnut filled Belgian chocolates,” says David Cunningham, Wilson Consumer’s business manager – grocery. “Reflecting on recent market activity we have seen the New Zealand consumer continue to show increased interest in premium boxed chocolates. From Wilson Consumer’s perspective this resulted in continued growth for the Guylian range in a declining market (4% val growth vs total boxed choc -2.7% ACNielsen MAT 2 Jan 2011).” Cunningham adds: “During recent months we have seen a strong battle within the boxed chocolate and especially in the milk chocolate

MARCH 2011 FMCG

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segment. It appears consumers are showing an acceptance that there is perceived value in paying for quality, especially when gifting. Consumers like to be seen to be giving something special rather than a perceived everyday item. This is especially true in key gifting occasions such as Christmas. Over this period we saw Guylian excel with over 10% growth versus the total market 6.2% for the four weeks of Christmas 2010 versus the four weeks in 2009 (ACNielsen 2 Jan 2011).” Wilson Consumer has introduced the new 131g Guylian Temptations pack to replace the 128g Guylian Twists pack. The new, clean, white packaging brings the pack in line with the rest of the Guylian range and as a nice bonus for consumers it has a slightly heavier pack weight

for the same price. “We are looking forward to another strong year with several new seasonal packs to be introduced as part of our gifting range, as well as the improved packaging on some of our everyday range,” says Cunningham.

Trade Aid chocolate “Trade Aid’s new food packaging is unique,” says Katie Sheehan, marketing manager for Trade Aid. “Each of our fair trade products has an image and a quote from our producers, with whom we have longstanding relationships. Every Trade Aid product tells a story, including our chocolate products about cocoa farmers.Trade Aid is a not-for-profit development agency, so our focus is on our producers, ensuring they receive a fairer wage, and their stories are shared with New Zealand consumers – consumers who want to know where their food comes from. Inside each chocolate wrapper is an inspirational story of hope and change from our producers. You’ll be able to read these stories once

you’ve purchased our bars!” Trade Aid chocolates are now found in various New World and Fresh Choice stores. The range includes a 50g milk and dark bar; 200g milk and dark block and an Organic Dark 100g block. “We are currently launching new packaging for our Milk and Dark chocolate – for the full range,” says Justin Purser, food manager – Trade Aid Importers. “Customers like it that we’re a committed, 100% fair trade organisation which has the welfare of cocoa and sugar producers firmly at the heart of our business model. They also like the fact that we’re a New Zealand-based non-profit organisation and a pioneer of fair trade – we’ve been trading since 1973,” explains Purser. Trade Aid has the largest range of fair trade food products in New Zealand – from Trade Aid coffee and tea, to olive oil and spices. Distribution into supermarkets of Trade Aid products has tripled in the past 12 months.

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18/2/11 11:10:00 AM

fgc

Review of food labelling Katherine Rich looks at the review panel’s report. The ‘Review of Food Labelling Law and Policy’ was commissioned by the Australia and New Zealand Food Regulation Ministerial Council at the request of the Council of Australian Governments. A review panel was established in 2009 chaired by Dr Neal Blewett (a former Australian Minister of Health and Minister of Social Security) to deliver the report.The panel included persons with expertise in marketing, consumer behaviour, public health law and food and nutrition policy. The review panel’s report, called ‘Labelling Logic’, was published on 27 January 2011. The panel consulted with key New Zealand industry and government representatives during 2010 at meetings in Wellington and Christchurch. Over 6000 submissions were made from Australia and New Zealand in response to an initial request for the identification of issues and concerns and a short discussion paper was subsequently produced. The final report reflects the difficulty the panel had in prioritising the more than 6000 issues raised with it and the bias of the panel towards public health. The review report makes 61 recommendations, dealing at times at a level of detail that is clearly beyond ‘policy and law’. For example, recommending font sizes for mandated label information (recommendation 44). For these reasons alone, the report would present significant concerns for industry. However, there are other areas of greater concern. The report is structured around an ‘Issues Hierarchy’ developed by the review panel. This is then linked to forms of intervention. In descending order of significance are food safety (mandatory), preventative health (mandatory and co-regulatory), new technologies (mandated identification for a set period of time) and consumer values issues (self-regulatory except in cases of market failure). Some recommendations are sensible developments for the future of the Australia New Zealand Food Standards Code. For example, there is reference to the audit of the Food Standards Code undertaken by the Australian Government’s Office of Legislative Drafting and Publishing. The audit is currently the subject of consideration by Food Standards Australia New Zealand and has strong support from New Zealand government officials. As the report suggests, unclear drafting poses a significant barrier for compliance (chapter 8 in the report) and fixing this would improve industry certainty and compliance. Other recommendations are useful for generating further investigation such as the sodium/salt debate and consumer understanding.

Katherine Rich, CEO, However, many recommendations and disNZ Food & Grocery Council. cussions in the body of the report go well Email: Katherine.rich@fgc.co.nz beyond policy and the food area and dictate standards – even standards currently under review or that have been rejected for lack of evidence or because they do not justify government intervention. These include recommendations mandating ‘added sugars and fats’, trans fatty acids, dietary fibre and alcohol warnings, discussion of organic standards, recommendations concerning health and nutrition claims (after over 10 years of development by experts in the field), and recommendations mandating ‘messages supporting preventative health strategies’. Of most significant concern is that much of the report turns on the first and ninth recommendations concerning a definition of public health and a nutrition policy (trans Tasman?) that should set out the role of food labels. New Zealand’s food laws have successfully reflected public health concerns and interfaced with nutrition policies of successive governments without the need for mandating legal definitions. There is also an ‘Overarching Strategic Statement for the Food Regulatory System’ for the transTasman food system.This Statement was issued in response to the policy tension between the scope of the food regulatory system and the achievement of wider public health objectives. It was more measured and balanced in relation to the public health area making it clear that enabling the existence of a strong, sustainable food industry was as important as responding to specific public health issues. This balance is not evident in the review report. The next steps in the process will involve officials responsible for food regulation in Australia and New Zealand developing a response for Ministers to consider at the meeting of the Food Regulation Ministerial Council in December 2011. Industry needs to have a strong voice in this process. In the current environment when Government is focused on growing the economy and promoting innovation, many of the report’s recommendations would have the opposite effect – stifling developments and driving food businesses offshore. Government has been quick to recognise the importance of the industry’s concerns and has already held a short briefing for interested parties in Wellington. The New Zealand Food and Grocery Council is developing a position on each of the recommendations in the report and will work closely with Government to ensure the best outcome for the food industry and for New Zealand. MARCH 2011 FMCG

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Meeting the needs of

Kiwi men FMCG reviewed some of the latest products in the male grooming category and found unique formulations that provide a one-stop solution for multiple skin concerns.

hey say it takes only seven seconds for people to make a first impression – whether you’re entering a boardroom, turning up on a date, or sitting in a job interview. Now consumers can achieve the look of peak performance every time, with Olay Men Solutions – a skincare range developed exclusively for men. For over 50 years Olay has been at the forefront of innovation and technology, and with this knowledge of skincare formulas and ingredients, Olay developed Olay Men Solutions – customised for the specific needs of men’s skin. Olay scientist, Dr Colin D’Silva, says: “Thanks to insights gathered over many years, Olay has an in-depth understanding of skincare ingredients and formulas. We wanted to harness this to create a product range specifically for men – accommodating the fact that male skin has unique needs. “Men are lucky because they have

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thicker skin than women and it contains more collagen – making it much more resilient. However, whilst their skin is thicker and stronger than women’s they also have more sweat glands, larger pores, produce more sebum and are more prone to acne and irritation. And of course, they have to shave,” D’Silva says. “These differences mean that men have specific concerns that a skincare product should address, and as such, Olay Men Solutions has been created and designed specifically to address three key male skin concerns: oiliness, roughness and dullness.” Olay Men Solutions’ product formulations promote renewal and antioxidation to effectively help combat signs of tiredness. In creating Olay Men Solutions, Olay researched and screened more than 100 formulas and selected from among more than 300 ingredients. The Olay Men Solutions range offers unique formulations that include ni-

acinamide, vitamin Pro B5, vitamin B3 and vitamin C and multiple botanical and mineral essences for men’s skin including ginseng, green tea, witch hazel and cucumber. “Niacinamide is a well known all rounder when it comes to skincare. It helps to increase hydration, improve skin texture, minimise pores and reduce sebum production,” says D’Silva. “Vitamins E and C offer antioxidant power to help skin to resist damage from free radicals, and vitamin Pro B5 is a proven skin smoother that helps to strengthen skin’s moisture barrier. “As a result, the combination of ingredients has resulted in a range of products that will provide men with a one-stop solution for multiple skin concerns – providing significant control of oil secretion, keeping skin hydrated for up to six hours and in just four days significantly improving skin elasticity,” he says. Olay’s product line up includes:

male g roomin g

THE BREAKDOWN Current MAT to 30 January 2011 Total Male Grooming: $13.746m Value % Chg vs YA 3.2 Total Shaving Preparations: $9.206m Value % Chg vs YA 0.4 Total Male Defined Facial: $3.275m Value % Chg vs YA 8.3 * ACNielsen New Zealand ScanTrack (Databank)

• Refreshing Energy Range – for normal to oily skin Refreshing Gel Foaming Cleanser – RRP$12.99 Balancing Gel Moisturiser – RRP$19.99 • Multi Solution Range – for normal to dry skin Smooth Cream Foaming Cleanser – RRP$12.99 Refreshing Post Shave Toner – RRP$19.99 Revitalising Cream – RRP$19.99 Eye Gel – RRP$19.99 With products available in nearly 130 countries, Procter & Gamble (P&G) is one of the world’s largest beauty and grooming companies. FMCG spoke to P&G Australia & New Zealand public relations manager, Alicia Gorken, about the company’s presence in the New Zealand male grooming category. “P&G has a number of brands which are represented by the male

grooming category in supermarkets and department stores throughout New Zealand. These include Oral-B, Gillette, Braun, Head & Shoulders and we have recently just launched Olay Men Solutions,” says Gorken. “P&G has also recently launched the ‘Scalp Care collection’ from Head & Shoulders – the world’s numberone scalp care range of shampoos and conditioners – which features three new variants containing natural extracts including almond oil, eucalyptus and aloe vera. Scalp problems are extremely common and range in severity, with 40% of sufferers experiencing severe scalp problems. Each variant is designed to target specific scalp issues including dry scalp, sensitive scalp or an itchy, irritated scalp,” says Gorken.

Discover hydration With men’s kits and blades declining at -2.5% (Aztec TKA MAT 31/01/11) and impacting the overall

shaving category, Schick is investing heavily in the launch of its new razor platform – Schick Hydro™ – in order to reinvigorate the category and drive growth. “Research shows that men’s attitudes towards grooming are evolving,” says Kelly-Anne Doyle, brand manager Schick Energizer NZ. “Interest in one’s appearance has become more commonplace and we see a growing acceptance of malespecific grooming and related products,” explains Doyle. “Men are caring more about looking, smelling and feeling good than ever before – a trend that shaving has not capitalised on… until now. Men told us that shaving is time consuming and despite advancements in the category, it can still leave skin feeling uncomfortable. Men told us that they want a comfortable, irritationfree shave, but they also want a razor that cares for their skin, that helps their skin hydrate naturally.The New Schick MARCH 2011 FMCG

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Hydro does just that.” “Schick Hydro is the first range of razors and shave preps that work to hydrate your skin as you shave,” says Doyle. The range, available in three and five blades, offers many first-to-market technologies, including a water-activated gel reservoir that lasts up to twice as long as regular lubricating strips, EasyGlide Blades with skin guards that smooth your skin to reduce irritation, and a flip trimmer (Hydro 5 only) that allows for precise trimming of hair. “Hydro delivers a revolutionary shaving experience, going beyond hair removal to care for men’s skin,” says Doyle. Schick is proudly heralding Schick Hydro 5 as the “best shave for your skin” and after extensive testing, claims the Hydro 3 delivers a better shave than Mach 3. Schick Hydro is available now. Schick and Schick Hydro are trademarks of Energizer. Mach 3 is a trademark of the Gillette Company.

Dove range expands Unilever offer products across the Rexona, Lynx, and more recently Dove Men+Care brand,spanning Deodorants, Skin Care and Cleansing categories. “Globally, Unilever holds a clear leadership position in men’s toiletries (this includes bath and shower, deodorants, haircare and skincare) with a 25% global category share in 2009 which has grown substantially since 2001 (Euromonitor International: 2009)”, says Duncan Robertson, senior brand manager male grooming, Unilever Australasia. 34

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In 2010, Unilever launched the Dove Men+Care range into the New Zealand market, leading with the launch of a range of deodorant products. Dove, is a beauty brand made famous for defying the traditional ‘rules’ of women’s beauty advertising, and is now adopting elements of this approach as it launches the Dove Men+Care range of skin cleansing and deodorant products. “Using real men is consistent with Dove’s heritage of speaking to consumers in an authentic way that is relevant to their lives, hence the advertising around the Dove men range is designed to reflect this,” explains Robertson. “At Dove we believe the ideal man is a man who is comfortable in his own skin, and we recognise the journey and life experiences it takes for real men to become comfortable with who they are… and stay that way.” “To date, the results of this launch have been strong with Dove Men+Care gaining a 2.3% share of the total deodorants market, not yet having been in market for a full year. (Aztec: 12 weeks to 30/1/2011).” This month, the Dove Men+Care platform will be expanded into a skin range – launching a range of bodywash, bar and facial cleanser products, along with a clever shower tool designed to exfoliate and cleanse the skin effectively, which will all be located within the Male Grooming aisle in major supermarkets. Worldwide, skincare has shown the highest percentage growth consistently every year from 2002 to 2007 within men’s grooming prod-

ucts (Euromonitor International 06 June 2008). “Within New Zealand, men’s skincare has seen strong growth with over 17% growth in Male Skin cleansing and over 20% growth in Male Facial Care (Aztec Total Key Accounts MAT 03/10/10. ^Male specific SKU’s only),” says Robertson. Nations developing in Male Grooming clearly start with the basics, using high penetration categories from which to build regime – deodorants and aftershaves – and progress to shaving products such as pre- and postshave creams/gels. It is likely that after using facial grooming products men are then more prepared to go on and try a moisturiser or other ‘advanced’ product. And what about the future of the men’s market? “In Australia and New Zealand we have just started the journey,” says Robertson. More sophisticated, technologically advanced products will increasingly be introduced to the market globally – men want to compete with their younger rivals, so anti-ageing products will grow.” Convenience is the key selling point when it comes to men. Men need to be able to find what they are looking for and understand what the product does quickly (the same applies for women shopping for men). Women like to pamper themselves and spend time applying products. Most men get annoyed with this process – they want convenience and a quick fix to their appearance requirements.

IT’S ABOUT TIME YOU HAD A REASON TO SING IN THE SHOWER.

Clinically proven to ﬁght skin dryness better than regular men’s body wash. So go ahead, sing all you want. Now you have the perfect excuse.

catego ry c h e c k

Innovative packaging to make such products more user-friendly is the key to success, for example an anti-ageing eye product in roll-on format. The new Dove range includes: Dove Men Bar – RRP$4.99 Dove Men 400ml Body Wash – RRP$7.66 Dove Men Facial Wash Tube – RRP$9.99 Dove Men Foaming Facial Wash Pump – RRP$13.99 Dove Men Shower Tool – RRP$7.66.

What men want To find out what’s new at Beiersdorf, FMCG talked toVicky Herring, senior customer marketing manager – Nivea For Men in New Zealand. “Nivea For Men is New Zealand’s No. 1 brand in Male Grooming with 42% share of the market (52 weeks to 30th January – Nielsen Total Supermarkets),” says Herring. The brand has seen strong growth in the last year, at 14.9%, well ahead of the total Male Grooming market at 3.2%. Nivea For Men offers New Zealand men expert skincare solutions with its high performance products. “Nivea For Men understands what men want and offers a full range of products under key needs based areas – an Essentials range, a Revitalising Q10 range to give skin energy and a Sensitive Range,” explains Herring. Over the past year Nivea For Men has expanded the successful Revitalising range, with four new products across the four-step face care regime for men: cleanse, shave, after shave and moisturise.The products are designed to attract new users to men’s face care. The Nivea For Men Revitalising 36

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range contains Coenzyme Q10 to give instant revitalisation to tired, stressed skin. It revitalises the skin by giving an enhanced “energy charge” to the skin cells and activates the skin’s own antioxidant defence to improve regeneration of the skin. “The success of this range is clear, with both the Cream and Gel Revitalising moisturisers in the top four moisturisers sold in New Zealand supermarkets (along with Nivea For Men Protective and Sensitive moisturisers),” says Herring.

Leaders in ‘green chemistry’ innovation Primal Earth captures global growth demands for more natural grooming products and drives category innovation by giving consumers the choice of natural performance and chemical free products. Developed in New Zealand using cutting-edge ‘green chemistry’, the Primal Earth range is specifically designed for sensitive skin. “There is a growing consumer awareness and hypersensitivity to harsh chemical-based skin products,” says Shane Young, managing director Primal Earth. From the makers of the highly successful Primal Earth men’s grooming range come two new additions to the brand: the Primal Earth SPF15 Balm and Face Scrub. “The new Primal Earth Balm SPF15 is the only daily-use organic moisturiser with sunblock available in the category,” says Young. “This soothing natural balm is nongreasy while locking in essential moisture. With key ingredients that include

non-nano natural zinc oxide, it guarantees protection against all elements without unnecessary chemicals,” he adds. The new Primal Earth Face Scrub is a natural and gentle product that washes away dirt, excess oil and dead skin cells, leaving skin feeling clean fresh and smooth. “It doesn’t include polyethylene beads, which are commonly used in other scrubs. Polyethylene beads don’t biodegrade and there is strong evidence to show that they can enter the food chain through marine life,”Young explains.

Right Royal shave The King of Shaves range of male grooming products has redesigned blades to a V2 version – with a smaller top clearance to get under the nose and increase precision. Packaging has also been upgraded for the system razor ‘Azor’. “We have had another amazing year,” says David Mcleod, New Zealand ceo – Creative Partners. “We are still the only male grooming company to offer a complete shaving portfolio – system razor, blades, tube gels, canned gel, oils, cream and skincare,” he says. “Our shaving software (shave preparation) continues to grow and we currently hold over 12% of the Progressive shave prep market – a clear number three position. Our shaving hardware (the Azor) has really shaken up the industry. Boasting ‘Shave closer, longer for less’ has certainly hit a chord with consumers. “We will be launching our V5 – our 5 blade Azor system razor soon,” revealed Mcleod.

we are

having

a ball for

Venue : The Langham, The Great Room Date : Friday, 19 August Time : 6:45pm Theme : Masquerade

Visit: www.grocerycharityball.org

Masks of some description are compulsory. Black Tie.

LLIAM

Aitken & Co.

gs 1

APEC’s view on supply chain visibility Dr Peter Stevens, chief executive, GS1. Email: peter.stevens@gs1nz.org.

Customs and excise is always in the vanguard of regulation.

Collecting revenue by ‘clipping the ticket’ on traded goods has always been a good way for kings and states to fund wars and infrastructure such as castles and bureaucrats. New Zealand is no different, with the NZ Customs Service proudly laying claim to be the first government department (the first ‘Comptroller of Customs’ was appointed on 5 January 1840). That said, there is a growing focus from state agencies globally on trying to mitigate the impact of their activities on the traded sector. Indeed, late last year an APEC (Asia Pacific Economic Cooperation) workshop was hosted in Japan on the future of supply and demand chains. The key purposes of the workshop were to: • Help APEC economies to better understand the importance of the role played by Supply Chain Visibility (SCV) in the economy and what are the elements that could be applied to their respective economies; • Understand the implications of SCV on industries and the economy, as well as clarify the role of governments in facilitating competitiveness in a globally linked supply chain. FMCG readers may be cynical and think that governments often seem hellbent on making things hard for traders through the imposition of regulations that impede the easy flow of goods. You may think it is ironic that they are getting down to discuss how to minimise the impact of the things they themselves have done. Putting cynicism aside, the workshop’s final communiqué really highlighted that to take a ‘step change’ in efficiency for the trading sector, visibility was the key. This is because government agencies quite reasonably 38

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have to have information available to discharge their regulatory responsibilities around biosecurity, customs, consumer protection etc. If they don’t have access to verifiable information, processes slow down. APEC’s workshop concluded that the only way for regulators to get smart, timely and verifiable information around products and party (ie, who is trading with whom) is via encouraging traders and state agencies to use the new EPCIS (Electronic Product Code Information Systems) standards. You may have heard of EPC/RFID (the emerging standard for Radio Frequency Identification set by GS1) by reading how Walmart, Metro, Tesco and, closer to home, kiwifruit exporter Eastpack are using RFID to reliably identify product moving through their supply chain. RFID is an amazing technology facilitating handsfree identification of product down to an individual unit by the encoding of a unique number into a little chip attached to an item (normally a case or pallet of product). Hundreds of chips (or tags) can be read in a second from a distance of up to 10 metres. But you may not have heard of EPCIS. EPCIS is to a RFID tag what a website is to an URL (such as http://www.gs1nz.org). An EPCIS holds, in standard format and with appropriate security, all the information about the item a tag is attached to. Such information as place and time of manufacture, product identity, time and location of shipment between trading partners etc. Often an EPCIS is deployed to support the operations within or between companies using EPC/RFID. However, what APEC is focusing on is a future where key information from traders is available to regulators to peruse either in real time or in advance of goods getting to the border or to regulatory checkpoints. This will assist them to ‘green lane’ the product moving down the supply chain. It has been difficult to find out what the New Zealand Government’s perspective is on the workshop conclusions or indeed EPCIS. But if you want to learn more, check out the following information on EPCIS & EPC on YouTube: http://www.youtube.com/ watch?v=k-w6ZYIo37E.

nargo n

Bring on Rugby World Cup 2011! Trina Snow considers the opportunities and challenges. This year, the Rugby World Cup will be the largest single sporting event in the world and it will be hosted right here.The economic benefits are expected to be substantial with over 60,000 people visiting New Zealand and four billion more watching on television. For stores, this event presents both opportunities and challenges. In terms of opportunities, all stores near World Cup venues should be aware of the tournament schedule so they can plan for any possible influxes of customers. Some visitors may arrive a few days earlier or stay on a while after the game so matches are unlikely to produce a one day blip.The official RWC schedule is available online: http://www. rugbyworldcup.com/home/pools/index.html Retailers should also be aware that some teams will have more travelling supporters than others.The biggest overseas groups are likely to be following the British teams (England, Scotland, Ireland and Wales) as well as our traditional rivals Australia and South Africa. Smaller sides like Georgia and Namibia are unlikely to have many travelling fans. In terms of challenges, all stores urgently need to ensure their eftpos terminals are up-to-date with new standards well before 1 June 2011. An estimated third of the country’s terminals (40,000 out of 120,000) may need to be upgraded or replaced. If the necessary upgrades or replacements do not take place in time, stores risk being unable to process international cards and could even be kicked off the network. Basically, every terminal has to be checked immediately. This is a business-critical issue for any store with a terminal and that is pretty much every store. Perhaps the biggest challenge for stores will come from a little-known piece of legislation called the Major Events Management Act 2007 (MEMA). It was passed after New Zealand lost the co-hosting rights for a previous Rugby World Cup and has huge implications for all stores, not just those near games. Fundamentally, the legislation means that just because the Rugby World Cup is happening, it does not mean that you can mention the Rugby World Cup. In fact, it means you probably can’t. Here is the official explanation: “The Major Events Management Act 2007 (MEMA) protects the rights of official sponsors to benefit from their investment in RWC 2011. It does this by preventing parties that are not official sponsors from advertising, or otherwise promoting their goods or services, in a manner that suggests they are official sponsors or somehow

Trina Snow, executive director, NARGON.

associated with RWC 2011. This has some important implications for the New Zealand business community, particularly around the use of protected RWC 2011 emblems and words.” The key concept is businesses promoting their goods or services in a manner that suggests they are “somehow associated” with the World Cup. To combat this, the law prohibits the commercial use of a number of official emblems and a long list of key words including Rugby World Cup, World Cup 2011, RWC, World in Union, Rugby New Zealand 2011,Webb Ellis Cup and IRB. These restrictions will have dramatic implications for promotions, specials and window dressing. Common behaviour in the past may not be allowed under the new laws. For example, a sign in the store window wishing the All Blacks good luck in the Rugby World Cup is not allowed. However, a store would be allowed to wish New Zealand rugby well in September and October. It really is that restrictive. Recent major sporting events such as the Football World Cup indicate tournament organisers are becoming increasingly active in enforcing these sorts of rules and stores should be exceptionally careful. While NARGON considers the restrictions excessive, they are the law and the Government has provided a clear and useful guide to the Major Events Management Act 2007. This illustrated guide can be viewed on the Rugby World Cup website: http://www.rugbyworldcup. com/mm/Document/TournamentDestination/0 2/03/72/63/2037263_PDF.pdf We even checked this column against the MEMA guide. As the rules stand, a supermarket cannot use the title of this column as a window display, in advertisements, on promotions or on their commercial website. It can only be used here because this column is media commentary. Stores should be prepared for the World Cup, be very careful in their promotions and, ultimately, enjoy the rugby!

MARCH 2011 FMCG

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softer side of products

The everyday

old weather and the flu season will be upon us again soon and with that comes an increased demand for facial tissues. FMCG talked to Kimberly Clark’s category development manager Mandy Deihl about this segment and other developments within the paper products category. “Kimberly Clark New Zealand brands are all premium brands that offer the highest quality products on the market. Kleenex is the market leader in Facial Tissue and holds a 42% $ share in the category and is growing at 3%, while the Total Category is in 2% decline*,” explains Deihl. Commenting on other segments in the category, Deihl said: “Kleenex 40

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Cottonelle holds a 15% $ share in the Toilet Tissue category and the brand is growing at 12% (Total Category in 5% growth)*. Viva Paper towels holds an 8% share in the Paper Towel Category (Total Category growing by 6%)*.” Kleenex Flushable Toilet Wipes was launched in July 2010 and this segment is enjoying a massive 20% growth. “The growth of toilet wipes has been incremental to the category, and delivers a high dollar per sheet versus dry toilet paper,” explains Deihl. Kleenex Long Roll Format was launched in July 2010. Deihl comments: “Research told us that consumers prefer less roll changes. The long roll is more shelf efficient, and has decreased logistic costs, which of

course is kinder to the environment. Long Roll now represents 20% of Kleenex Cottonelle sales. “In the Facial Tissue Category, Kleenex Tubes and Kleenex Slices were launched in 2010 to increase average weight of purchase in New Zealand,” says Deihl. “We brought not only bright fun designs but practical solutions for the car and kitchen. Sales have been incremental to our speciality range. We have given consumers a reason to purchase more than the ‘white box’.” Kleenex Moist Wipes is in a category that is growing at a massive 30%. This single sku launch has driven phenomenal growth and is now responsible for a third of all wipe sales (34% share of Moist Wipes Segment). “We have brought a quality product

paper produ c ts

THE BREAKDOWN Current MAT to 30 January 2011

in a portable format – a must for every handbag,” says Deihl. “In the Paper Towel Category, we launched Viva Pink towel to drive awareness for breast cancer – results show that New Zealanders can really get behind a cause and we nearly doubled our normal unit sales in a week. We have stretched the Viva brand into the cleaning category this year and launched Viva Stainless Steel Wipes and Viva Glass Wipes recently, these products are all natural and we are very excited to add yet another category to our family.” Deihl adds: “At Kimberly Clark we will continue to launch quality premium products that offer value to New Zealand consumers and retailers. Watch this space for some exciting additions to our range.”

“New Zealanders are finding more reasons to buy more tissues. Our category has a number of substitutes, so displays are essential to drive the impulsive nature of our category and remind shoppers to purchase tissues. More ‘Out of Winter Season Promotions’ has driven increased percent sold on promotion. “New Zealanders are also loving wipe products – there is a massive 20% growth in the Toilet category and 30% growth in the Facial category,” explains Deihl. There is also a trend to larger bulk sizes in the Toilet Tissue category (as we know no-one ever wants to run out). “Protecting the environment is important to us and our consumers and we are busy updating our paper

Total Facial Tissues: $36.316m Value % Chg vs YA -5.2 Total Everyday: $16.188m Value % Chg vs YA 1.2 Total Special Care: $15.903m Value % Chg vs YA -5.7 Total Convenience: $4.225m Value % Chg vs YA -22.6 Total Toilet Tissues: $157.454m Value % Chg vs YA 3.1 Total 12s: $72.198m Value % Chg vs YA 8.0 Total 4s: $31.270m Value % Chg vs YA -1.7 Total 13s+: $29.630m Value % Chg vs YA 27.0 Total 8-11s: $18.824m Value % Chg vs YA -24.3 Total 6s: $5.192m Value % Chg vs YA -3.6 Total 1-2s: $201,114 Value % Chg vs YA -44.3 Total 40s: $79,729 Value % Chg vs YA 583.9 Total 10s/12s: $30,276 Value % Chg vs YA 739.9 Total 80s: $29,341 Value % Chg vs YA 123.6 * ACNielsen New Zealand ScanTrack (Databank)

products packaging to reflect our recent Forest Stewardship Council Certification,” says Deihl. The Forest Stewardship Council (FSC) is a non-profit organisation devoted to encouraging the responsible management of the world’s forests. FSC sets high standards that ensure forestry is practised in an environmentally responsible, socially beneficial, and economically viable way. * Aztec 6 months to 16/01/2011. MARCH 2011 FMCG

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About one third of consumers buy printed towel products to brighten up their kitchen or complement their home décor. Rewarding consumers SCA Hygiene Australasia supplies Purex, Economy and Sorbent toilet tissue, as well as Handee, Handee Ultra and Softex paper towels. “In toilet tissue last year we launched four ‘Collectable Rolly free gift with purchase packs’, which were a unique value-added offer rewarding consumer loyalty,” says head of consumer sales NZ Brendon Lawry. “The four offers were Original Rolly in February, Easter Rolly in April, Farmer Rolly in August and Christmas Rolly in November 2010. A total of 486,000 packs were sold accounting for 1.4% value share of total toilet tissue (Aztec TKA MAT 23/01/2011). Consumers were engaged judging by the letters from kids sharing their stories, drawings and requests for more Rolly toys, plus wanting to know when the next one was coming out.” Lawry adds: “Sorbent Long Roll (8s seascape design and 4s white) were launched in October 2010 and have achieved total 0.6% value share of toilet tissue in the latest read 42

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(Aztec TKA MAT 23/01/2011)), as consumers are really discovering just how convenient not having to change the roll so often is – especially in households with children! “In paper towels, Handee Long Roll singles were launched in March 2010 and have achieved 1.5% value share (Aztec TKA MAT 23/01/2011),” says Lawry. “It is the only long roll paper towel on the market currently. With 50% more sheets on a roll, consumers feel more relaxed about using paper towel for more jobs in and around the home. Handee Long Roll definitely fits the positioning of being handy!” About one third of consumers buy printed towel products to brighten up their kitchen or complement their home décor. “To capitalise on this we are currently introducing Handee design print 3s – a collection of new prints in one bulk pack to drive further growth in the 3-pack segment. Handee has the only 3 pack on the market and it is currently experiencing 44.1% growth (Aztec TKA MAT

23/01/2011),” explains Lawry. Some exciting new activities and products are coming for Purex over the next few months building on the brand’s 50-year history in New Zealand and strong corporate sustainability and social responsibility position. “The toilet tissue category is experiencing value growth of +3.1% slightly behind volume growth at +4.6% (Aztec TKA MAT 23/01/2011),” says Lawry. “Contributing to this is the average price per roll declining by an average of 2.1% per year for the last five years due to increasing levels of promotional activity and the growth of bulk pack sizes (12+ rolls),” explains Lawry. “In paper towels volume growth is +5.9% and value again slightly behind at +4.8%.This growth is being driven by the mid segment running at 10.6%. Bulk packs (3s & 4s) are leading the pack size growth at 44.1% and 10.4% respectively, putting more paper towel into consumers’ homes and encouraging greater usage for everyday tasks.”

When businesses want to talk to other businesses and the people in them… they talk to us

Mediaweb publisher of FMCG, the lead title for the fast moving consumer goods market sector, and its associated email newsletter foodnews. Five channels: • Business | Management | Leadership • Advertising | Media | Marketing • FMCG • Food & Beverage | Food Service | Hospitality • Screen Sector Across all media: Magazines, books & newsletters | emags & enewsletters directories & databases | events | social media | video photography | contract publishing | print & web design Visit mediaweb.co.nz to become a ‘friend of Mediaweb’ and receive: • Discounted subscriptions and special offers • Invitations to our events – wine, spirits & food tastings at some of the coolest venues in town Register for invitations to our events .... view pix from recent events at www.mediaweb.co.nz For all enquiries phone 0-9-845 5114 or email enquiries@mediaweb.co.nz

New

packaging Environmental considerations, functionality and eye candy are key, finds Tamara Rubanowski.

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asy opening mechanisms, resealability and portioning aids are becoming increasingly prominent in package design. Foods that can go straight into the microwave in their packaged state and packages with novel plastic laminates that extend a product’s best-before date are also among the new trends. Manufacturers who disregard convenience and whose products don’t stand out from the crowd with high functionality and attractive appearance could soon be out of the running in a highly competitive international market. “Packaging solutions are now expected to feature convenience and a minimal ecological footprint,” said a representative of the German display and packaging manufacturer STI Group at the recent Interpack trade fair. STI develops its packaging for the food and consumer goods industry using cardboard and corrugated board, largely dispensing with plastics. Familiar to many, STI produces the package of the Persil laundry detergent brand with its special tear-open mechanism. Meanwhile, at the world’s largest consumer technology tradeshow, CES 2011 in Las Vegas, wireless charging technology was revealed for new packaging. The technology uses induction power to create packaging which can illuminate in stages to create an eyecatching effect (see images above).

Reducing waste Recyclability is one of many environmental considerations that manufacturers have to take into account. One of the fundamental roles of packaging is to prevent more waste than it creates by reducing breakages and extending the shelf life of

products. This is particularly the case in the food industry where new packaging developments have been able to dramatically reduce the amount of food wasted in the supply chain. According to a 2010 report from PricewaterhouseCoopers, the loss of food products between grower and consumer is about 2% in the developed world, but between 30 and 50% in the developing world. The difference is largely attributable to modern, technically advanced packaging designed to preserve fresh food for longer. For example, supermarkets are selling individually wrapped fruit and vegetables because the thin plastic wrapping will allow them to remain fresh for up to five times longer. Reductions in packaging must carefully balance the impact of product losses that may result from the use of too little packaging as well the impacts of using too much. Over the past two decades, the packaging industry has reduced the weight of packaging by more than 40% and so the energy required to make packaging for food is now only about 10% of the supply chain energy used to get that food to us. By its nature packaging is very visible and is something that attracts the attention of consumers, the media and environmentalists. A recent report published by Wanaka Wastebusters claimed that 86% of New Zealanders are concerned by the amount of packaging waste they have to deal with. New Zealanders expect the packaging industry to reduce the amount of packaging waste going to landfill and to develop packaging which uses fewer resources. “The packaging industry is moving from looking at packaging

New packaging developments have been able to dramatically reduce the amount of food wasted in the supply chain. recyclability as the only environmental criterion, to addressing the sustainability of packaging in a much broader sense, where recyclability is one consideration of many, said executive director of the Packaging Council, Paul Curtis. It is for that reason that the Packaging Council of New Zealand has developed a Packaging Product Stewardship Scheme for its members. The specific objectives of the scheme are improved packaging design and systems to reduce packaging waste, increased reuse of packaging, increased recycled content in packaging to replace virgin material and increased consumer awareness and understanding of sustainable packaging. Scheme members are required to adopt the Packaging Council’s Code of Practice for Packaging Design, Education and Procurement which is designed to help companies MARCH 2011 FMCG

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New Zealanders expect the packaging industry to reduce the amount of packaging waste going to landfill and to develop packaging which uses fewer resources.

manage the sometimes conflicting demands of technical performance, cost, consumer protection and the environment, while recognising the need for a sustainable society.

Tactile ink cans and black glass Heineken has recently teamed up with New Zealand fashion designer Adrian Hailwood to celebrate the launch of the world’s first tactile ink can.To promote this innovative packaging technology, Heineken offered consumers limited edition eye-masks created by Hailwood. The mask will help consumers to ‘feel’ the new Heineken can in their hands. The new Heineken cans are available in six packs at supermarkets and liquor stores nationwide. Another beer brand – Monteith’s – 46

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decided that black glass would be the perfect packaging choice for its new Single Source beer. Monteith’s marketing manager Russell Browne said black glass helped create a bold-looking product with premium, sophisticated appearance. “Our new beer delivers unique flavours due to the specific areas in New Zealand where we source hops and barley,” said Browne. The black bottles are produced by the world’s largest glass packaging manufacturer, Owens-Illinois (O-I), which recently expanded its new black glass technology in the Asia Pacific marketplace with the opening of a new $85 million glass furnace in Auckland. “O-I’s 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,” explained Browne. O-I’s new black glass beer bottles are commercially available in one design and two closure finishes. The bottles are 100% recyclable and provide a number of functional benefits, including superior light protection. Jacqueline Moth, O-I Asia Pacific’s general manager of marketing and

sales, commented: “Consumers continue to be intrigued by new and innovative packaging. O-I’s black glass can be applied to all food and beverage categories to create standout products that will attract the attention of consumers in a competitive market.” The company employs more than 22,000 people with 78 plants in 22 countries. O-I NZ is New Zealand’s only local glass packaging manufacturer and has been supplying the local food and beverage industries since 1922. The new furnace in Auckland will also enable the company to almost double its recycling of post consumer glass – called cullet – from 84,000 to 154,000 tonnes per annum. This provides a significant reduction in carbon emissions and waste going to landfill. Steve Bramlage, O-I NZ’s general manager, said the new furnace would increase the availability of locally-made glass packaging, ensure security of supply, and provide shorter lead times and freight efficiencies for customers. “O-I’s new furnace uses the latest in global glass manufacturing technologies to produce quality glass packaging to meet the short-term and long-term needs and expectations of our customers as well as New Zealand consumers,” Bramlage said. The new furnace uses narrow neck press and blow technology to produce light weight bottles, providing a significant reduction in energy use while maintaining bottle proportions and premium design cues. “This significant investment in our Auckland plant highlights our commitment to supporting the future growth of New Zealand’s food and beverage industries,” says Bramlage. Entries for the Environmental Packaging Awards 2011 close on 27 May. Visit www.packaging.org.nz for more information.

g rocer y busi n ess Sales promotions – what you need to know Sales promotions are often one of the most important components of the overall marketing strategy of a business. The term “sales promotion” is used to cover a wide variety of initiatives undertaken by businesses in order to promote an increase in sales, usage or trial of a product or service and can be used to inform, persuade and remind target customers about the business. Consumer sales promotions are steered toward the ultimate product users – typically individual shoppers in the local market. Some popular methods of sales promotion involve prize draws, sweepstakes and contests that require consumers to purchase a product in order to enter. Increasingly, new interactive technologies such as Facebook, Twitter and iPhone applications are being utilised in order to conduct such promotions. While these types of promotions have grown substantially in recent years, there are laws to make sure that consumers are not taken advantage of and to maintain an even playing field amongst competitors. One piece of legislation that should be kept in mind when structuring a sales promotion is the Gambling Act 2002 which regulates certain competitions, lotteries and games of chance to protect the public from exploitation. Privacy issues may also arise where personal information is captured through consumers entering such competitions. The Gambling Act applies where entry for a prize draw or sweepstake competition is made conditional on the consumer purchasing the promotional product. While certain forms of gambling are illegal, the Act allows exceptions for legitimate sales promotions where the winner is determined on the basis of chance (or at least in part) or where a game of skill is involved. Sales promotions that fall within the provisions of the Gambling Act must also meet certain requirements. For example, the dates over which the promotion is run need to be clear on all point of sale material and the consumer cannot be charged more than the normal retail prize of the product in order to enter the competition. There are also restrictions on the types of prizes you can give away such as no alcohol, boats, motor vehicles or firearms. However, not all sales promotions will come within the Act’s strict provisions. Competitions where there is no purchase requirement, where the winning entries are determined solely on the merits or “skill” of the entry, or where every entrant gets the same prize, will not be caught. For example, if entrants are required to write a story about the “night of their life” and the winner is determined on the best entry,

then this will be classed as a game of skill and fall outside the provisions of the Act. Further, website or text entry mechanic is often considered to be an easy and effective way of encouraging consumers to enter such competitions. However, these simple entry mechanics often require more caution with regards to making sure consumers know exactly what they are signing up for. The Gambling Act specifically covers website and text entry under its definition of “remote interactive gambling” and prohibits instant win situations upon such entry. This means that for website and text entry competitions, winners cannot be pre-determined and instead must be decided through a prize draw or similar method. For example, if a promotion requires entrants to text in with a unique code to instantly win a prize, then this will be a breach of the Act. Likewise, if consumers are required to text in to go into the draw to win a prize but are charged 99c to enter (instead of the usual 20c), then this will also be a breach as the promoting business will be making a profit off the extra charge. As such, these types of promotions typically require terms and conditions to be available for consumers to read before entering the promotion. It is recommended that the following ‘bare essential’ information should be included on all material communicating the promotion (and at the point of purchase). • Dates over which the promotion is running. • Full details of the prize. • Any important limitations or unusual terms. • How the person enters. • Names and address of the promoter. Penalties for breaching the Gambling Act range from up to $50,000 for companies and up to $20,000 for individuals. Therefore, taking a cavalier approach to sales promotions where gambling is involved is not recommended and it is often important to seek legal advice when looking at the concept through to developing the point of sale material for such promotions. l Guest writer Mark Gavin is a partner at law firm Hudson Gavin Martin, which specialises in intellectual property and technology law. Email: mark.gavin@ hgmlegal.com

MARCH 2011 FMCG

g rocer y b us ine ss Award-winning programmes make dreams come true Stock controller Filemu Sau says Cardinal Logistics helped make his dreams come true this year. The 47-year-old Samoan father of four completed his first-ever workplace literacy and numeracy course, as well as a national certificate in warehousing, distribution and management – and was promoted as a result. He was also recently shoulder-tapped to speak on behalf of his company at the MIT Pacific Business Awards dinner for more than 400 people. Cardinal Logistics won Pacific Employer at the Pacific Business Trust’s biannual awards for developing and advancing its Pacific employees (most of whom are Samoan). The company has a workforce of 120 people – 100 are of Pacific Island descent. They store, pick, pack and transport goods from three warehouses based in Auckland and Christchurch. “This year has been amazing. I’ve learned a lot, I’ve grown in confidence and I’ve had so many opportunities. Training helped me put away my shyness. I told myself I won’t get anywhere; I won’t climb the ladder unless I start to believe in my own skills and potential. That’s why it was a real privilege to talk at the awards dinner and tell people what the award means to me personally,” says Sau. “I dreamed one day I’d work for a business like Cardinal. I dreamed I’d work for a company that cared about its employees, their welfare and helping people reach their potential.” Cardinal Logistics’ HR manager Karen Stent says such staff feedback, together with the Pacific Business Trust award, give her every confidence the 18-year-old third party logistics and distribution firm is on track to achieve its goal of becoming a world-class organisation.

Cardinal Logistics stock controller Filemu (Felix) Sau.

Cardinal Logistics chief executive Tony Gorton.

“It’s great to have the award recognition for the year’s hard work and transformation. We completely redeveloped our organisational values and culture to better reflect our Pacific people, as well as our goals as a business. “We introduced workplace literacy training to develop the confidence and skills of individuals – and to help them pick up industry-based qualifications. And we implemented two organisational change programmes, which complement everything else,” she says. Cardinal chief executive Tony Gorton agrees literacy training, together with the two organisational change programmes, have made an impressive difference to his people and his business in just 12 months. “In that time I’ve seen evidence of greater accuracy, fewer damages and our staff understanding and respecting one another more. Our customer service is improving. Health and safety compliance is up. We’ve also seen a 50% to 70% decrease in issues such as picking and data errors. “The way I see it, we are achieving a win-win-win. It’s a triple dose of the good stuff. I win, employees like Filemu Sau win, and our customers do too.” l

Join the Skills Highway The Department of Labour’s Skills Highway website profiles New Zealand businesses that have spent the last few years trying and testing workplace literacy training. Go to www.skillshighway.govt.nz/ind to read about Cardinal Logistics and others.

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g rocer y busi n ess Food manufacturing sector graduates receive recognition A ‘Roll of Honour’ graduate booklet has been established in recognition of the time, effort, and dedication learners put into completing their industry-based training and their employers for providing support throughout their learning journey. Industry-based training achievements are often overlooked when stacked up next to their university graduate peers, despite the comparable commitment learners must make to successfully complete their studies. “Gaining an industry-based qualification requires dedication and focus which deserves recognition,” says Competenz chief executive, John Blakey. “A qualification represents a lot of work dedication and determination on the part of the learner; and support, encouragement and skills-sharing on the part of the employer.” Among the 883 graduates are 178 workers from the wider manufacturing industry, including food and beverage manufacturers, who completed Level 4 national certificates in competitive manufacturing (100) and business first line management (78). These graduates have proven they have the knowledge, skills, and leadership capabilities that are essential for the continued growth of the manufacturing sector as a whole. In addition, 84 baking apprentices completed their specialist qualifications in craft, instore-franchise or plant baking. Most are employed within major supermarket chains, large baking plants or well-known bakery franchises, however a number also work within smaller bakeries all over the country. All these graduates studied while working part or full time in their chosen fields. Industry training organisation, Competenz, created and distributed the Roll of Honour to celebrate all graduates who completed Level 4 or higher qualifications within their industry coverage in 2010. “We congratulate all our graduates and their employers – they can be proud of their achievements knowing they play an important role in New Zealand’s continued solid growth and their skills remain in high demand from industry,” says John Blakey. The Roll of Honour will now continue to be published within the first quarter every year to celebrate the previous year’s graduates.

All these graduates studied while working part or full time in their chosen fields. Along with the Roll of Honour, Competenz has launched an alumni group ‘The Guild’ to create a community of industry-based training graduates. The group aims to keep graduates ‘in the loop’ with further training options to extend on their recently completed studies, and to help them ‘link in’ with their industry peers via dedicated e-newsletters and, later this year, alumni events to be held in two major centres. The inaugural issue of The Guild, Competenz’ alumni publication, was also distributed to the 2010 graduates with their Roll of Honour booklet, celebrating some of the many special training achievements of learners of the more recent past. A Facebook page – ‘The Guild – Competenz Alumni Group’ – has also been created as a forum for graduates to keep up with current trends in their field of expertise, and tap into the resources Competenz is developing to update graduates with changes in technology and management philosophy. If you completed your apprenticeship or industry-based training through Competenz at any stage, you can join The Guild in one of two ways: Email: theguild@competenz.org.nz Facebook page: ‘The Guild – Competenz Alumni Group’ – click to ‘Like’ the page. l

MARCH 2011 FMCG

g rocer y b us ine ss First cold storage fire sprinkler system Leading fire protection specialist Wormald has introduced an innovative sprinkler system specifically for cold storage facilities, which is the first of its kind available in New Zealand. The VanQuish system delivers a high-volume ‘surround and drown’ configuration to rapidly reduce the heat release rate of a fire, helping to prevent costly damage to both storage facilities and the goods housed inside them. VanQuish is manufactured by Wormald’s sister company Tyco Fire Suppression & Building Products. Representing a significant advancement in fire sprinkler technology, VanQuish provides a unique sprinkler solution that does not rely on in-rack sprinklers or anti-freeze, which are historically prone to damage and difficult to maintain. The ‘dry’ system means that the pipes are initially filled with air, and water is only discharged when both the fire wire detection system and the individual VanQuish sprinkler system heads are triggered. “It’s vital for companies with extensive storage facilities that measures are put in place to assist in protecting their assets against the devastation that a fire could cause their business,” said David Hipkins, national technical manager, Wormald. “As well as providing sophisticated fire protection technology, the VanQuish system

also maximises storage space, allowing items to be placed higher by eliminating in-rack sprinklers.” Wormald’s first New Zealand customer is one of the country’s biggest dairy producers. The company chose the system to avoid installing sprinklers within its cold storage racks, which it was concerned might be subjected to mechanical damage. This in turn could cause a costly false activation. It has also enabled the company to store its products higher than before, reducing the required amount of cool store floor area. Hipkins added: “Traditionally, technology like the type featured in tail-end anti-freeze systems has been utilised for the protection of such facilities. However, these systems have a number of drawbacks, such as the anti-freeze solution being corrosive and expensive to replace. “The VanQuish system has gone through extensive third-party testing to ensure that the time it takes for the water to flow through the sprinkler heads is acceptable.” Wormald is Australasia’s leading provider of fire protection solutions. Since 1889, it has designed, manufactured, supplied, installed and serviced fire detection and protection systems for a wide variety of industries, including building and construction, health care, military and government. l

George Weston Foods appoints new chief executive George Weston Foods (GWF), a division of Associated British Foods (ABF), announced the appointment of Andrew Reeves as its new chief executive. Reeves starts his new role with GWF in April 2011, following the departure of the company’s previous chief executive Geoff Starr. Over the past five years, Starr led significant change at GWF and the broader industry through his board membership of the Australian Food and Grocery Council and Foodbank Australia. Reeves has in-depth knowledge and experience in the Australian and New Zealand food industries, with over 28 years in senior roles with market leading companies including Lion Nathan and Coca-Cola Amatil. Most recently, as managing director of

FMCG MARCH 2011

National Foods, a Lion Nathan subsidiary, Reeves has been a driving force in transforming its sales and marketing capability, with a strong focus on the consumer and delivering through effective partnerships. George Weston, ABF’s chief executive, said: “After an intensive global search, we’re delighted to have secured an executive of Andrew’s calibre to lead GWF’s next stage of evolution in the dynamic and increasingly competitive markets in which our diverse businesses operate.” Until Reeves takes up the role, ABF has appointed one of its most senior executives, Sarah Arrowsmith, currently ABF’s ceo of UK Grocery, as interim chief executive for GWF, reporting directly to George Weston. l

g rocer y busi n ess Retail sales down, grocery sales and food prices up While the seasonally adjusted volume of total retail sales fell 0.4% in the December 2010 quarter, according to Statistics New Zealand, increases were noted in grocery sales and food prices. The volume of core retailing sales (which excludes the two vehicle-related industries) was flat, up less than 0.1%. “This quarter’s fall in the total retail sales volume follows a similar-sized fall in the September 2010 quarter,” Statistics New Zealand’s business statistics manager Louise Holmes-Oliver said. “Conversely, core retailing has recorded increased sales volumes for the seventh consecutive quarter.” The value of total retail sales was flat in the December 2010 quarter, down just 0.1% ($12 million). Vehicle-related industries recorded the largest movements in both sales volumes and values in the December 2010 quarter. Fuel retailing had the largest sales volume rise (up 6.4%), while the sales value increased 10.4%, due to price increases. Largely offsetting these increases was an 8.2% fall in the motor vehicles and parts retailing sales volume, while the sales value also decreased 8.2%. The core retailing sales volume and value were both flat in the December 2010 quarter, up less than 0.1%, and down 0.1% respectively. Supermarket and grocery stores had the largest sales movements within the core industries, with the volume up 1.9%, and the value up 2.4%. In the December 2010 month, the seasonally adjusted total retail sales value decreased 1.1% ($60 million), following a 1.2% increase in November. December’s decrease was predominantly driven by core retailing, which fell 1.2% ($51 million).

From January 2010 to January 2011, food prices increased 3.8%. In January 2011, compared with December 2010: • Food prices rose 1.8%. • Fruit and vegetable prices rose 7.4%. • Grocery food prices rose 0.9%. • Meat, poultry, and fish prices rose 1.7%. • Non-alcoholic beverage prices rose 1.2%. • Restaurant meals and ready-to-eat food prices rose 0.4%. l

MARCH 2011 FMCG

Big milestone for Kiwi company Iconic New Zealand ice-cream manufacturer Tip Top marks its 75th birthday this year and to celebrate it gave away 50,000 Jelly Tips.

FMCG February 2010

First black and white advert circa 1966 (Ann Tremain).

Opening of factory in Mt Wellington 1962. Rachel Hunter.

The ice-cream giveaway in 11 locations around the country was the biggest ever seen in New Zealand. It came in February, just days after a Wellington family won $10,000 in the first golden Ticket of the Great Tip Top Ice Cream Hunt. Tip Top produces around 35 million litres of ice cream a year and New Zealanders consume a mind-boggling four million Jelly Tips every year. “Jelly Tip was launched back in the 1950s and is one of our most popular ice creams with Kiwis. It’s become a symbol of all things great about Tip Top – great ingredients, great summer memories and the best tasting icecream ever,” says Brett Charlton, Tip Top’s managing director. “We’re proud to be celebrating our 75th year as a fully owned New Zealand company. It’s a real milestone

and we want to acknowledge the loyalty New Zealanders have shown Tip Top for the past 75 years with free ice cream. “Most Kiwis would be able to dig out an old baby photo which captures the moment they ate their first icecream – it’s a quintessential picture, a Kiwi tradition, and that ice cream is almost always guaranteed to be a Tip Top ice cream.” “Happy Birthday” from Rachel Tip Top has a number of celebrations planned this year to mark its 75th birthday, which will incorporate some of the legendary Kiwis it has worked with in the past. Supermodel Rachel Hunter appeared for the first time on television in an advertisement for Tip Top Trumpet in the mid 1980s at 15 years of age. MARCH 2011 FMCG

Tip Top Trumpet, Panmure.

The Trumpet commercials were the first big break for our most successful international fashion model, and still there’s nothing she craves more than a Trumpet. “Happy Birthday Tip Top. I can’t believe you’re 75! In Los Angeles, there’s nothing I miss more than a Trumpet” says Hunter. Meanwhile Aucklander, Paul Driessen, the foreman on the Tip Top factory floor when the first Jelly Tip left the production line, also turns 75 this year. He wishes the company nothing but the best for its three quarter century milestone. “We’re the best vintage, Tip Top and I. Happy Birthday Tip Top and I hope New Zealanders enjoyed their free Jelly Tip that first came off the line 60 years ago!” he says. From ice cream parlour to market leader Tip Top is New Zealand’s leading ice cream company and a market leader in all categories. Among its portfolio of brands are Kiwi icons such as Trumpet,

FMCG MARCH 2011

FruJu, Jelly Tip, Popsicle and Memphis Meltdown. Established in Wellington in 1936, Tip Top has been part of Fonterra since the farmer owned co-operative was formed in 2001. Drawing on generations of expertise, Tip Top invests significantly in research and development, enabling the company to provide new and exciting products for New Zealanders. It all started in 1936, when Albert Hayman and Len Malaghan opened their first ice cream parlour in Manners Street, Wellington. In 1936 a second milk bar was opened in Wellington, and another one in Dunedin. The same year, Tip Top Ice Cream Company was registered as a manufacturing company. By 1938 Tip Top was manufacturing its own ice cream and was successfully operating stores in the lower half of the North Island, and in Nelson and Blenheim. In May 1938 Tip Top Ice Cream Company Auckland was incorporated into the growing ice cream business. Due to distribution difficulties and

World War II, this was operated as a completely separate company to the Wellington Tip Top. In November 1962, Hayman and Malaghan opened the biggest and most technically advanced ice cream factory in the Southern Hemisphere, built at Auckland’s Mount Wellington. The Tip Top factory included staff houses and 20 acres of farm land overlooking the southern motorway and cost $700,000 to build. By 1964 the company had expanded to such an extent that a parent company was formed, General Foods Corporation (NZ) – rated as one of the soundest investments on the stock exchange. The Auckland Tip Top factory was originally a seasonal factory, worked only to produce ice cream for the summer months. With hugely successful brands like Topsy, Jelly Tip and FruJu, the Mt Wellington site was transformed into a 24-hour, 365-day operation. As demand grew over the years, two further plants were opened

in Christchurch and Perth. The Christchurch factory was specially designed to meet the stringent export requirements of the Japanese market. In 2007 the Christchurch factory was closed and all production moved to Auckland. In April 1997 Tip Top was purchased from Heinz Watties by a West Australian food processor, Peters & Browne’s Foods. This merger of Peters & Browne’s and Tip Top created the largest independent ice cream business in the Southern Hemisphere with combined sales of $550 million. In June 2001 Tip Top Ice Cream became part of Fonterra Cooperative Group after Fonterra purchased the Peter and Browne’s Foods Business. Tip Top has a long-standing commitment to using home-grown ingredients like fresh cream and fruit. The products are made using only New Zealand milk and cream while products like boysenberry ripple, New Zealand’s third favourite flavour, are sourced locally from grower Barry Wratten’s

Lower Moutere orchard in Nelson. As part of this year’s celebrations Tip Top is bringing the old classics back. A consumer facebook campaign begging for the once deleted Grapefruit and Lemon Fruju comeback has been successful, and it’s now back on sale. The company has also launched a limited edition Mint Choc Trumpet – and according to its latest advertising campaign is “manufacturing only one for every New Zealander”. The three most popular Tip Top flavours are vanilla, cookies and cream, and boysenberry. Tip Top’s oldest novelty ice cream still in production is the Eskimo Pie. l MARCH 2011 FMCG

When myths become facts Perception versus reality. By trina snow Trina Snow, executive director, NARGON.

In modern times, perception is often more influential than reality. Frequently, it does not matter what the truth is, it matters what people think the truth is. Once a perception is established it can be exceptionally difficult to change. This maxim applies to most fields of human endeavour, including retailing. In politics, the haughty tone of Prime Minister Jenny Shipley on television created an impression she was aloof and detached. Off-camera, she was a warm and funny person. In sport, former All Black coach John Mitchell was highly innovative and largely successful. However, his bizarre language and convoluted answers convinced most people he was not the right man for the big job. In retail, there is the long-standing belief that spinach is an extraordinarily healthy vegetable with incredible levels of vitamins, minerals and other good things. For decades, it was almost plausible that this humble vegetable could have created Popeye’s legendary strength. That long-running cartoon seemed to reinforce spinach’s status as one of the first ‘superfoods’, even if kids did not always want to eat it. The truth is that spinach is good for you, but not much more than other leafy vegetables. The popular story is that spinach’s reputation was based on faulty calculations by a German scientist in 1870. He misplaced a decimal point while calculating iron content, which produced a reading 10 times higher than the actual level. By the time the mistake was noticed in the 1930s, the extraordinary reputation of spinach was entrenched and still persists today, much to the disgust of many fussy children. In many ways, convenience stores, dairies and small supermarkets have been subjected to the triumph of perception over reality. The alcohol reform measures before Parliament contain a provision looking to “clarify” that smaller stores will not be able to hold a liquor licence in the future. Politicians argue they never intended these types of businesses to have the ability to sell alcohol though

FMCG MARCH 2011

that was never stated either in the Parliamentary debates or in the actual law. In fact, these stores sold alcohol for a decade before it became an issue. Suddenly, it became fashionable and popular to apportion blame for anti-social behaviour to the fact that we had “too many” liquor outlets and that booze was available on “every street corner”. That is simply not true. Additionally, there is no real evidence that smaller stores are less responsible than other types of outlets. Conversely, the prices in smaller stores are naturally likely to be higher than bigger outlets, limiting their appeal to problem drinkers. The Government has decided to limit liquor licences by store type and store size. NARGON considers this approach to be arbitrary and unfair. If the Government is serious about reducing the number of alcohol outlets, and it seems it is, it should target outlets which continually breach the law and close them down, rather than punishing a whole sector, most of whom are responsible sellers. Unfortunately, perception has become reality and it will be hard to sway the Government at this late stage. Perhaps the biggest example of the damage this phenomenon can cause is the enduring myth that during the 1992 campaign President George Bush Senior was “amazed” by an electronic price scanner in a grocery store. The reporter stated that scanners had been in widespread use for a decade and that the incident proved Bush, who had been in the White House for 12 years, was out of touch with the common people.The story was front page news, widely reported and quickly became a defining image of Bush. The reality was somewhat different. Bush was being shown cutting-edge grocery scanners which had many new features. He was on the campaign trail and trying to be polite. Even the man who demonstrated the new scanners for the President, Bob Graham, said Bush “knew exactly what I was talking about”. None of this entered the media and the popular image of Bush as out-of-touch dogged him throughout the campaign which he ultimately lost. The myth of the President and the scanner is still repeated today, 18 years and three presidents later, reinforcing the lesson that perception is everything. It is a lesson our sector needs to bear in mind every day.

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MARCH 2011 FMCG

the business of liquor reselling 58

FMCG February 2010

Shades of white Geoff Griggs contemplates wheat beers. With the change in seasons, so my choice of beer is changing. For the warmer days of summer I find myself moving away from the darker, maltier beers which satisfied me during the colder months, in favour of paler, racier, more refreshing styles. Usually that means a drier, hoppier brew like a Pilsener lager or a pale ale, but there’s another family of beers which doesn’t rely on the hop to provide its ability to quench the thirst. I’m referring, of course, to wheat beers. In a column for Air New Zealand’s inflight magazine writer Gordon McLauchlan suggests wheat beers have a reputation for blandness. I disagree; in my opinion wheat – both in its malted and raw forms – is often responsible for some notably distinctive aromas and flavours in beers. Depending on the strain of yeast selected and the temperature profile employed during fermentation, wheat can produce a variety of aromas and flavours ranging from clove, vanilla, nutmeg and cinnamon, to apple, banana, plum and even bubblegum! And it doesn’t end there; wheat can also create a quenching tartness to balance the beer’s natural malt sweetness, in much the same way tannins and acidity balance the sweetness of the grape in wines. Modern golden wheat lagers provide the gentlest introduction to the

Geoff Griggs is New Zealand’s most authoritative commentator on the subject of beer.

world of wheat beers. Pioneered by American brewers, they exhibit the crispness but not the fruity, spicy notes of other wheat beer styles. Typically low in hops, they are ideal for those looking for refreshment without the bitterness found in other lager styles. A spritzy, unfiltered example is brewed by Californian brewer Jim Matranga at the Golden Bear brewpub in Mapua near Nelson. Served fresh off the tap, it is his biggest selling beer. However, for the most traditional and characterful wheat beer styles you

have to look to Europe; in particular the ‘white beers’ of Belgium and Germany. A proportion of up to 50% raw wheat in the mash combined with malted barley, crushed coriander seed and the bitter peel of Curaçao oranges gives Belgian white beer – witbier in Flemish, or bière blanche in French – its unique character. Typically pouring a full yellow-white colour with a fluffy white head, witbier is tangy and sharply refreshing, with perfume-y notes of orange, honey, apple and even Muscat. Although Belgium’s Hoegaarden is by far the most well-known example, Christchurch brewer Ralph Bungard has made a name for himself with a variation of the witbier style which favours lemon over orange peel. His zesty, spicy (gingery?) Three Boys Wheat is something of a Kiwi classic and a delightful summer quaffer. Weissbier selection grows With a law forbidding the use of spices or other flavourings in beer, Germany’s numerous Weissbier (white beer) brewers achieve distinctive banana, clove and bubblegum flavours by using special yeast strains in conjunction with a mash containing a high proportion of malted wheat (sometimes up to 80%). In Germany, the term ‘Kristallweizen’ identifies a mild, filtered, golden wheat beer, while ‘Hefeweizen’ denotes a spicier, fuller-flavoured beer that is served hazy, with the yeast mixed in. Deeper hued examples are often prefixed by the term ‘dunkel’ (dark). The selection of German Weissbiers available here seems to have grown recently, with examples from Hofbräu and Erdinger, sometimes served on tap, supplementing the established Schneider and Schöfferhofer ranges. New Zealand’s first example of

For the most traditional and characterful wheat beer styles you have to look to Europe; in particular the ‘white beers’ of Belgium and Germany. the German Hefeweizen (cloudy) style was Emerson’s Weissbier from Dunedin, but other locally brewed versions like Tuatara Hefe, from Waikanae, and The Hef, from Croucher of Rotorua have since arrived. All three exhibit the style’s classic combination of banana, bubblegum and spice and have rated consistently well in local beer competitions. As they don’t have to be transported half way around the world, the Kiwi beers tend to be fresher than their German counterparts. That’s a big advantage with wheat beers. Germany’s most robust wheat beer style is called ‘Weizenbock’ (wheat bock). When christening these beers Bavarian brewers seem to have agreed a convention; the names end in the suffix ‘us’. Hence Erdinger’s Weizenbock is called Pikantus and Schneider’s Aventinus. Here in New Zealand Emerson’s also produces a delightful example of the style each winter. Sadly the Dunedin brewery doesn’t adhere to the German convention; its beer is simply named Emerson’s Weizenbock! Originally developed as Christmas brews, Weizenbocks combine

chocolate, caramel and dried fruit flavours alongside the familiar clove, bubblegum and banana notes. Weighing in at around eight percent, they’re rich, dark, silky and warming and best enjoyed on a winter’s evening, perhaps with a meal of spiced roast pork, or as a contemplative beer to sip slowly with a book at bedtime. But perhaps not an inflight magazine. In his column Gordon McLauchlan writes, “A beer made from 100% wheat malt is, to me, a bit vapid, lacking in body, but never before have I drunk a beer which is a combination of wheat and barley malt…” Given the fact that almost all wheat beers include a proportion of barley malt, I’m surprised. And as for “a bit vapid” and “lacking in body”, Gordon’s obviously never sampled a Weizenbock! Mental note: I must ask the folks at Emerson’s to send him a bottle. Cheers! l MARCH 2011 FMCG

Are we there yet? Are New Zealand méthode traditionelles as good as Champagnes? Sam Kim investigates. As we celebrate the success of our world-class sauvignon blanc, pinot noir and Bordeaux-style reds, it is perhaps naïve to think that our bubblies are as good as the ‘real thing’. There are an increasing number of excellent méthode traditionelles made in New Zealand. We use the same grape varieties (not so much pinot meunier though) and same fermentation and maturation techniques, yet you can always pick a Champagne from New Zealand examples. In fact, no other sparkling wines can match the style and quality of Champagne, even the ones made by famous Champagne houses in California and the Yarra Valley. However, it is most exciting to see the progress of New Zealand bubblies over the past couple of decades. In the early days, wines showed either too many fruit characters or oxidised notes without the all-important elegance. Now we are achieving better balance, fineness and length. Still, there are many méthode traditionelles showing overt fruitiness, excessive acidity and/or dullness. If a producer is going to the trouble of fermenting the wine in bottle and ageing on lees then the wine should display some yeast autolysis notes, a flowing mouthfeel backed by well integrated crisp acidity, leading to a fine, lingering finish. Yes, brands are critical in the sparkling wine category, as best demonstrated by the Grande Marques Champagnes. But these celebrated Champagnes do deliver on quality as well. There are indeed some lovely examples gracing our wine lists. From the exquisite Blanc de Blancs, such as Cuvée No. 1 NV and Deutz Blanc de Blancs NV, to beautifully

harmonised and complex Nautilus Marlborough Cuvée NV and Cloudy Bay Pelorus NV, to the more robust and weighty style of Hunter’s Miru Miru NV, Cloudy Bay Pelorus Vintage 2005 and Quartz Reef 2006. And poor old rosé. I am Sam Kim is an guilty, along with most independent wine consumers, of not ordering reviewer, senior wine this scintillating drink often judge and author of enough, even though I the wine orbit blog. love it whenever I try a For informative wine good one. One of my comment go to favourites is No. 1 Rosé NV, wineorbit.co.nz which exhibits a beautiful pale salmon colour with strawberry and floral aromas followed by a seamless palate. Our méthode traditionelles will never be Champagne. We have a different climate and vastly different soils – we don’t have Champagne’s thick layer of 100 millionyear-old chalk sub-soil. But I look forward to the day when our wines are spoken about with the same reverence and having the demand similar to that of Champagne. We’ll get there with grapes from better sites, older blending materials, better blending knowledge and the consumer backing. l

Two fine expressions of New Zealand méthode traditionelle

Quartz Reef Méthode Traditionelle NV Source: Bendigo, Central Otago Varieties: pinot noir; chardonnay

No 1 Family Estate No 1 Rosé 2008 Source: Marlborough Varieties: pinot noir

Winemaker Rudi Bauer notes: focused, fresh and crisp with a beautiful balance and length. Colour: Pale yellow. Bouquet: Royal gala apple with a hint of lime, brioche. Palate: Flirtatious, moreish, enhanced by an invigorating cool, creamy acidity.

Winemaker Daniel Le Brun notes: this exceptional rosé is made from 100% pinot noir. Delicate salmonpink with a mass of tiny bubbles, the wine offers a seamless balance of subtle cherry and almond hints combined with a dry acidity. Dry, yet fresh and elegant, this wine leaves a lasting impression of opulence and splendour.

FMCG MARCH 2011

Win a case of Stoneleigh Rapaura Series Subscribe to FMCG this month to be in the draw to win a case of wine (worth over $160) from the award-winning Stoneleigh Rapaura Series range! The Stoneleigh Rapaura Series is the name given to the distinctive stony soils upon which the Stoneleigh Vineyards are situated. It is from these unique soils that this premium range of exceptional Marlborough wines takes its name. The Stoneleigh winemaking style is a direct reflection of the unique characteristics of the terroir. Winemaker Jamie Marfell aims to maximise the unique flavours inherent in the fruit and delivers wines of exquisite quality and style. Turn to page 13 to subscribe and go to www.stoneleigh.co.nz for more information on Stoneleigh. l

MARCH 2011 FMCG

World Class New Zealand Award for Sir George Fistonich The founder of Villa Maria Estate winery has been announced as a category winner at the World Class New Zealand Awards 2011. Seven of New Zealand’s leading entrepreneurs and innovators – people dedicated to enhancing the country’s reputation on the world stage – have been honoured in this year’s World Class New Zealand Awards. The annual awards, presented by Kea New Zealand and New Zealand Trade and Enterprise, recognise extraordinary New Zealanders who have made significant contributions to the country’s growth and development. Nominees are evaluated against five main criteria, with the focus on promoting New Zealand internationally, building global connections, and facilitating the exchange of information, knowledge and skills from and about the country. The category winners of the 2011 World Class New Zealand Awards are: • Creative: Dr Michael Stedman, a television pioneer who has built Natural History New Zealand into a world-leading documentary maker. • Information & Communications: Michael Boustridge, head of BT Global Services, a US$9 billion business in 176 countries. • Finance & Investment: Dame Judith Mayhew Jonas, lawyer and powerbroker in the upper echelons of the British establishment. • Life Sciences: Professor Bob Elliott, a world leader in the treatment of type-1 diabetes. • Manufacturing, Design & Innovation: Sir George Fistonich, the founder of Villa Maria Estate winery and a leading force in the country’s wine industry. • New Thinking: Sam Morgan, founder of Trade Me,

co-founder of Pacific Fibre, active software investor and philanthropist. • Science, Technology & Academia: Dame Professor Anne Salmond, historian and writer who has helped define and shape our historical understanding of New Zealand. The Supreme Award, which is selected from outside the list of category winners, will Sir George Fistonich. be revealed at a gala dinner at The Langham Hotel in Auckland on April 6. For only the second time, a ‘Friend of New Zealand’ award will be presented to a non-New Zealander who is working to build global connections and support New Zealand businesses internationally. The World Class New Zealand Awards have been running for eight years and are judged by Sir Stephen Tindall (Chair, Kea New Zealand), Jon Mayson (Chair, NZTE), Professor Sir Peter Gluckman, Jane Hunter, Bridget Liddell and John Stace. Tindall says the award recipients are people committed to making a real difference to New Zealand across a range of industries and endeavours. “The breadth and depth of the winners illustrates the number of talented Kiwis operating at home and offshore at a world class level.” l

Babich ‘Best White Wine’ in Canada Babich Wines, one of New Zealand’s oldest family owned wineries, has won Gold and Best White Wine at a coveted consumer wine competition in Quebec, Canada – The Concours Prix du Public. Babich Marlborough Sauvignon Blanc 2010 has been awarded a Grand Gold medal (one of only six awarded) and 95/100 points (highest score for a white wine from any

FMCG MARCH 2011

country) in this contest that has been judged by consumers in The Société des alcools du Québec (SAQ), a state-owned corporation responsible for the trade of alcoholic beverages across more than 400 outlets in Quebec. Babich Wines looks back at three generations of Babich family ownership and now exports to 35 countries around the world. l

Good things come to those who wait … and wait … and wait Jim Beam Black has had a makeover and is now available ‘triple aged’, making it an elegant, smooth and refined spirit of choice for the bourbon connoisseur. The new look Jim Beam Black has spent a minimum of six years in new charred white oak barrels. This is three times longer than bourbon laws require and gives Jim Beam Black a special edge and superior taste. Jim Beam Black ‘triple aged’ has a full bodied flavour with smooth caramel and warm oak notes. It can be served neat, cut with water, on the rocks, or with a range of mixers. The new Jim Beam Black packaging gives a more premium and contemporary look to reflect the quality of the liquid inside, which has remained the same for 215 years. According to Jim Beam brand manager Jennifer Robinson, Jim Beam Black offers a very clear trade-up proposition at a time when discerning consumers are looking for something special. Jim Beam Black is available now at liquor outlets nationwide (RRP $49.95). Jim Beam’s newest product in a can Jim Beam has another exciting new product hitting the market – Jim Beam & Dry 330ml. Driven by consumer demand for all things dry, Jim Beam has hit the mark with real bourbon and a real fresh taste in a 330ml can. Jim Beam & Dry comes in a convenient take-home six-pack perfect for summer BBQs. It’s a lighter and fresher taste, ideal for those RTD drinkers looking for an alternative to beer. “We are really excited about Jim Beam & Dry. Dry ginger ale is showing ever increasing popularity in the local drink market and appeals to a wide consumer base,” says Jim Beam brand manager Jennifer Robinson. Jim Beam & Dry is available at liquor outlets nationwide at a competitive price to match its great taste – in a 6 x 330ml bottle pack for RRP $15.99. “Rock n Race” V8 Supercar event Jim Beam is searching nationwide for New Zealand’s most outstanding Grid Girls to represent the brand at the ITM400 Hamilton V8 Supercar Championship Series street

race in Hamilton 15-17 April. The Jim Beam Grid Girls will play a major role over the three-day event, which is attended by over 100,000 people and viewed by millions on television across the world. They will appear in team photographs, assist crews and drivers, stand on the grid prior to the start of races and hang out with the thousands of V8 Supercar fans. The ideal candidate to be a Jim Beam Grid Girl will be aged between 18-28 years, have modelling or event experience, enjoy interacting with people and have a sound knowledge of the ITM400 Hamilton event. “We are really excited to be taking ownership of the Jim Beam Grid Girls at this year’s event,” says Robinson. “Not only do we have a team competing, Jim Beam Racing, we also have the Jim Beam Bourbon garden, the Jim Beam Party Crew and numerous Jim Beam activities taking place throughout the event. The new look Jim Beam Grid Girls further cements our presence and commitment to one of New Zealand’s biggest events. The new ‘Rock n Race’ format of the event allows the girls to broaden their experience to include sport and music entertainment,” says Robinson. l

Jim Beam Party Crew.

MARCH 2011 FMCG

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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 to win one of two glass tea sets, each with a box of Zesty Oolong Tea. The tea set contains two tea mugs, a teapot and a small jug (worth $80). Just email your high res image with a caption and your contact details to: editor@fmcg.co.nz

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Open 2011

After Party.

DIARY 2011

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

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

JULY 28-31

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

AUGUST

ROYAL EASTER SHOW WINE AWARDS The 2011 Royal Easter Show Wine Awards Dinner Logan Campbell Centre, ASB Showgrounds, Greenlane, Auckland www.wineshow.co.nz

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

NARGON AGM Wellington www.nargon.co.nz

10-11

FOODSTUFFS EXPO Palmerston North

15-17

NEW ZEALAND INTERNATIONAL WINE SHOW 2011 Closing date for entries: 5th August Closing date for receipt of wine samples: 10th August Judging dates:15th - 17th August www.nziws.co.nz

THE GROCERY CHARITY BALL The Langham, Auckland www.grocerycharityball.org

APRIL 8-10

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

MAY 11-14

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

SEPTEMBER 3 NEW ZEALAND INTERNATIONAL WINE SHOW 2011 AWARDS DINNER Crowne Plaza Hotel, Albert Street, Auckland www.nziws.co.nz

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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Calling all businesses

UAKE RECOVERY by NZ firms

BusinessNZâ&#x20AC;&#x2122;s Major Companies Group is coordinating relief contributions by businesses for those affected by the Christchurch earthquake. Firms wishing to contribute in any way are asked to contact quakerecovery@businessnz.org.nz or call 04-496 6554 www.recovercanterbury.co.nz