FMCG April 2011 by mediaweb

incorporating

9 421902 251016

April 2011 Volume 17 No 3 $9.15

THE BUSINESS OF MANUFACTURING • LOGISTICS • SUPERMARKETING

fmcg . co . n z

•

foo d ne w s . co . n z

Meet The Needs Of Your Innovation From NZ's #1 NEW

· Only 7% sugar · Fruit Free and low in fructose & glucose · Naturally sweetened with zero-calorie Stevia · Luxury nuts & seeds including almonds, cashews & macadamias

Vogel’s Café-Style Light Luxury Nuts & Seeds offers shoppers strong health benefits with no compromise on taste. We have combined Vogel’s traditional mixed grain goodness and premium nuts with a zero-calorie natural sweetener made from the Stevia plant. At only 6.6% sugar, Vogel’s Cafe-Style Light Luxury Nuts & Seeds has significantly lower levels of sugar than comparative products making it truly suitable for anyone wanting to manage their sugar intake, including Diabetics. SUGAR COMPARISON

Sugar Content (g/100g)

Café-Style Light Luxury Seeds & Nuts

6.6

AVERAGE Sugar Content of Top 10 Muesli Products

21.2

Source: Aztec, based on ranking by value, TKA National, QTR 27/02/11

For further information about this and other VOGEL’S products visit our website: www.vogels.co.nz

Customers With Great Premium Muesli Brand

™

Delivering Profit with High $/kg

Vogel’s Café-Style range has been a consistent performer growing more than 25% MAT every year for the last three years. Our no-compromise cereals encourage shoppers to trade up to a higher $/kg products, meaning better margins for you. $ 3500000

TOTAL CAFÉ-STYLE

3000000

+40%

+27%

2500000

Make sure Café-Style has exposure on your shelf.

+37%

2000000 1500000 1000000 500000 0

MAT to 02/03/08

MAT to 01/03/09

MAT to 28/02/10

MAT to 27/02/11

Source: Aztec TKA National MAT 27/02/11

Smartfoods Limited, 3-5 Farmhouse Lane, St Johns, Auckland, NZ Freephone: 0800 EAT WELL (0800 328 935) ®

Contact: Tracey Thompson

tracey.thompson@smartfoods.co.nz 021 244 4097

contents

6 Editorâ&#x20AC;&#x2122;s note 8 Industry news 17 FMCG online 19 Subscription form 43 Whatâ&#x20AC;&#x2122;s hot

APRIL 2011

Features 14 When it all came tumbling down A case study from Coca-Cola Amatil

28 Free to range?

Animal welfare issues in New Zealand

50 Are you advertising to children? Expert legal advice from Hudson Gavin Martin

Category checks 22 Soups 32 Hot beverages 38 Breakfast cereals

Regulars 13

FGC Incredible response efforts

16 Nargon

Supporting Canterbury

OUR COVER This new, microwaveable range of convenient snacks and meals comes in 200g pouches and 350g boxes in eight great tasting flavours.

contents APRIL 2011

Fresh and local In season

20 Deli counter

How to make the most of your deli counter?

46 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

Looking at the evidence

54 Industry news 57 Directory 53

58 Feature

Easter Show Wine Awards 2011

62 Industry news

Great tasting BACON... needs great new

PACKAGING Our new look 100% New Zealand Free Farmed bacon range, Streaky, Ribeye Rashers and top selling favourites Middle Eye and Middle Rashers, will soon be in the chillers. The new premium packaging features Hellers unique new ‘rigid packs’ with an easy-peel top and layered bacon for much better display. We’re going to have a big push to launch the bacon T.V ads in June and July so stock up to take advantage of the new look packaging – it’s going to fly out of the chillers… brilliant! As sure as Hellers!

RTISING BIG BACON ADVE July June

Todd Heller

T.V

e ditor ’s note Vol 17

No 3

april 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

Subscriptions subs@mediaweb.co.nz 09-845 5114 $90.00 a year (incl GST) for 11 issues Australia $150.00 Rest of the world $190.00

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Publisher Used on a white background

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.

The price of freedom On average each person in New Zealand will consume 224 eggs in a year. As a protein food they are great value for money, with the added advantage of being easy to prepare and readily available. While consumption of free-range eggs has increased in the last decade, there has also been a significant increase in volume of caged eggs consumed in the same period, illustrating the importance of food affordability for consumers. Currently the majority of eggs consumed in New Zealand are from caged hens (88%). Free-range eggs account for 10.6% and barn eggs 1.4%. Chairman of the Egg Producers Federation, Michael Guthrie, told FMCG that the Federation, which represents all commercial egg producers in New Zealand, supports and promotes the Code of Welfare for Layer Hens to all members. This Code is currently under review by MAF’s National Animal Welfare Advisory Committee and its recommendations are now being circulated for public comment. “The key recommendation, to gradually phase out conventional cages, is consistent with the industry’s own direction,” says Guthrie. “The industry recognises that conventional cages limit birds’ ability to express natural behaviour and have been looking at alternatives for some years. Until the recent development of the colony system there has not been a viable alternative that allowed more natural behaviours without pushing eggs beyond the means of the general consumer. However, careful consideration around the timing of any transition is vital

Tamara Rubanowski editor@fmcg.co.nz

to ensure both consumers and egg farmers are not adversely impacted by the changes,” explains Guthrie. We take a closer look at animal welfare in New Zealand on pages 28-31 in this issue. Investigating new developments in the food industry is usually one of the perks of my job, but there is also a downside. As a seasoned editor with more than 10 years’ experience in the FMCG sector, my weekly grocery shop often turns into a major research mission. My partner no longer wonders why I spend several hours at the supermarket… I just can’t help looking at the seafood counter with a critical eye and scanning the aisles for new products. Imagine my concern when on a recent visit to my local supermarket on a busy Saturday morning, I found many of the shelves bare. Even tuna cans and margarine were nowhere to be found. Had I missed breaking news of an impending civil disaster in Auckland? The answer to the mystery was quickly found when I asked for the store manager. He had gone on holiday for two weeks… and his staff had simply failed to fill the shelves that morning. So this begs the question: how reliably will your team step up and cover for your store manager, when he or she is absent? Ongoing staff training is vital in our industry. Some employers are now implementing programmes that result in greater accuracy, fewer damages, improved customer service and health and safety compliance. Enjoy this issue and our updates on www.fmcg.co.nz.

news Nosh opens in Hamilton Market-style grocery shopping has arrived in the Waikato with the opening of Nosh Food Market’s new Hamilton store, in March. Nosh has seen sensational growth in Auckland and the Hamilton store is the company’s sixth to open in five years. The new store, located on the corner of Mill and Ulster Streets in Hamilton Central, is modelled on Nosh’s flagship Dominion Road market in the Auckland suburb of Mt Eden. It carries the full Nosh offering of the highest quality fresh produce, butchery, bakery and delicatessen, at competitive prices. The company has been busy recruiting locally to fill all of the 20 staff positions required to run the store seven days. Nosh co-founder Clinton Beuvink says Kiwis are embracing the affordable prices of market-style shopping. “Markets have really taken off. You can see it in the success of the farmers markets springing up in rural areas. With Nosh, urban shoppers can get the same fresh produce and personal service their country cousins enjoy.” Hamilton food lovers can now get the authenticity and expertise of the traditional butcher, the baker, deli, and greengrocer on one site. “We employ qualified, passionate and food-loving people

who are willing to provide the customer with a great shopping experience,” Beuvink says. Nosh’s emphasis on quality food and produce at affordable prices also appeals to modern household shoppers who are becoming more creative in the kitchen, Beuvink says. The produce section houses an array of fresh seasonal fruit and veg, and the deli has a wide selection of cheeses, meats, olives and other offerings. The Blackrock Butchery stocks the finest quality meats and champions traditional butchery practices. It specialises in aged beef, NZ lamb, poultry, free-range Freedom Farm pork and award-winning sausages. l

ALDI Australia turns 10 This year marks an important milestone in Australian grocery retail history – the 10th anniversary of ALDI’s entry into the Australian marketplace. With over 250 stores now operating on the east coast of Australia, ALDI group managing director Tom Daunt says it has been a busy 10 years for ALDI. “We were faced with the initial challenges of gaining access to sites and getting suppliers on board, but since then we have constantly focused on our offering and bringing Australians the benefits of what we call ‘Smarter Shopping’ – our philosophy of high quality exclusive brands at permanently low prices,” he says. “We have provided Australian shoppers with a genuine alternative to the major supermarket chains by offering exceptional quality products at previously unheard of prices. “When we first opened in Australia, for example, the cheapest loaf of bread sold by our national competitors was A$2; 10 years later we still sell our 650g loaf of bread for A$1.09. This, with a Consumer Price Index (CPI) increase of 31% in the same period! “Our exclusive branded products today are often 25%-40% cheaper than the branded products they compete against.

FMCG april 2011

When it comes to top quality products at incredibly low prices, consumers will struggle to find a better alternative,” he says. All ALDI’s Australian profits are reinvested in the Australian business to continue to grow the store network and keep prices low. The majority of ALDI’s products are Australian made: 100% of meat, 97% of dairy and 97% of fruit and vegetables are sourced from Australian producers and suppliers. “ALDI has contributed to the Australian economy by directly and indirectly creating thousands of jobs since it first opened 10 years ago,” says Daunt. “We wouldn’t be where we are today without the passion of our people, the loyalty of our customers, the support provided by our suppliers, and more broadly by government,” he says. l

www.cokecareers.co.nz

pride.

our team, your talent,

let’s talk 2011 is shaping up to be a busy year for us – not to mention our role as a Rugby World Cup 2011 official supplier. So we’re on the lookout for talented FMCG professionals – particularly those with excellent sales and supply chain experience. We consider ourselves to be an energetic, fast paced, forward thinking organisation that touches every part of New Zealand society. We’re equally proud of our reputation as the place to turbo-charge an FMCG career. If you are a sales or supply chain FMCG professional with a superb track record in your chosen field, here’s the perfect opportunity to refresh your career. So your time starts now… go directly to www.cokecareers.co.nz to learn more about who we are and what we need from you… then let’s talk. Follow us on

news Unexpected “special” at New World Shoppers at New World Victoria Park in Auckland got more than their weekly groceries when they did their supermarket shopping in mid-March, with 20 stunning models giving them unexpected fashion inspiration. Gone were the runways, front-row seating, backstage and media only invite list when Stolen Girlfriends Club, in collaboration with Red Bull, presented their “Untitled” Spring 2011 collection to a surprised audience down the aisles at New World Victoria Park. Creative director of the Stolen Girlfriends Club, Marc Moore was looking for a location that would take fashion out of its usual context when a trip to his local supermarket gave him some inspiration. “We noticed how the supermarket served as a natural catwalk, so we got thinking about how we could make this grand idea happen.” Owner-operator of New World Victoria Park, Jason Witehira welcomed the opportunity to host the show. “We like to give our customers a refreshingly different shopping experience through everything we do.” New World Victoria Park offers its customers a fantastic shopping experience and superb service, as well as a full service

deli, traditional butchery, a wide range of delights baked fresh each day in the bakery and an extensive wine selection. “Our store offers customers the choice and selection they have come to expect from a New World along with great prices. But just like our customers sometimes we like to be a little bit different, our collaboration with Marc and Red Bull is just one example of this,” says Witehira. l

Nivea celebrates 100th birthday Nivea creme has been sold worldwide in the classic blue-white container for almost 100 years. Today Nivea stands in the centre of an extensive product family available in over 200 countries. It includes all areas of skin and body care, and in 2010 created net sales of almost ¤4 billion for its producer, Beiersdorf. With the new motto “NIVEA: 100 Years Skincare for Life”, the world’s largest skincare brand* launches a worldwide campaign starting in May. As part of the new campaign Beiersdorf is starting the world’s largest-ever global skin advisory tour, at over 75,000 promotional stands in retail stores. With an anticipated 13 million-plus consumer contacts, around 1.7 million consultations, including individual

FMCG april 2011

skin analyses, are expected. To reach new target groups Nivea will also launch its largest-ever digital mobilisation campaign in social media, with international superstar Rihanna, expected to generate over one billion page views per week. Rihanna has a large number of fans on social networks such as Facebook, and her music will be used in various different campaign elements. With a ¤1 billion-plus marketing budget, the new campaign is a significant investment in the brand. Cosmetics company Beiersdorf AG is based in Hamburg, Germany and has over 20,000 employees worldwide. l *Source: Euromonitor, skin and beauty products excluding perfumes and hair colour by sales volume, 2009.

Rihanna.

Brilliant ranging, made easy

Taste the success of the Ingham Red Bag range, driving

strong and profitable growth in the frozen chicken category. Breadth of Range – ensures wide consumer choice Freezer Presence – packaging and branding that displays effectively in any freezer environment Quality 100% – New Zealand premium chicken meat delivering popular consumer appeal

HTR_ING_10165

Retail Support – significant and ongoing marketing support

Promo

For more information about the Ingham Red Bag range call Inghams sales department on 0508 800 785.

news Tough clean up for Christchurch Countdown and SuperValue stores Countdown New Brighton and SuperValue Woolston are now open to customers in Christchurch East after the earthquake, which struck the city on 22 February. Countdown’s chief operating officer Dave Chambers said the team at Countdown New Brighton have worked tirelessly to restore supermarket services to eastern Christchurch residents. “The damage to the store was extensive. Apart from broken fittings and stock, the store suffered from liquefaction. We had an old artesian bore blow through the floor in one of the aisles. A hole had to be cut in the concrete floor and a bobcat brought inside to dig until they found the source of the water and capped the spring. Our team spent three days mopping up silt and water,” Chambers said. “Our team was determined to get Countdown New Brighton open for the local community despite working in tough conditions with no sewerage or water services and only generator power. To get Countdown New Brighton cleaned up, re-stocked and re-opened has required exceptional effort and resolve from our team,” he said. “We are grateful to our team members across all 15 stores and three distribution centres in the Christchurch area,” Chambers added.

Three other stores have suffered significant damage. “We will not be opening stores until it is safe to do so and we are working with engineers and construction experts on a programme of work to restore services across these stores,” he said. “Our Countdown Colombo Street store suffered from a fire but it is structurally sound and we are working hard to rectify the fire damage with the store possibly re-opening in mid-April,” he added. Chambers said that Countdown’s supply chain is now back in full operation with regular deliveries to stores across Christchurch and the South Island. “Some products such as bread, water and sanitizer continue to experience high demand but we are receiving additional stock across all our stores in the Christchurch area,” he said. Chambers said Progressive Enterprises’ franchise operations had also been affected by the earthquake and the team at SuperValue Woolston put in a great effort to open its doors to customers. Information on store openings will continue to be provided on the Countdown website at www.countdown.co.nz and at www.facebook.com/countdown. l

Naked Panda has arrived in NZ! Naked Panda, as seen on the cover of this issue, is a new and innovative range of convenient snacks and meals that taste wicked! They are the real deal wet noodles and chicken offering consumers a real choice and bringing an authentic taste into the category.

With eight great tasting flavours and funky packaging everyone will want the Naked Panda! The pouch range is available in 200g microwaveable pouches, perfect for a quick snack on the go, ideal to fill the gap between meals. Available in four authentic flavours: • Chicken Teriyaki with noodles • Green Chicken Curry with noodles • Satay Chicken with noodles • Sweet Thai Chilli Chicken with noodles. The box range is available in 350g microwaveable boxes perfect for lunch or dinner. Available in four authentic flavours: • Chicken Laksa with noodles • Thai Chicken Curry with rice • Red Chicken Curry with rice • Honey Soy Chicken with noodles. Naked Panda will be going crazy on the web so look out for the panda at nakedpanda.com or facebook.com/ nakedpanda. Go on you know you want to! l

FMCG april 2011

fgc

Incredible response efforts Katherine Rich reflects on the Christchurch earthquake – the most devastating and tragic natural disaster in modern New Zealand history. As Kiwis, we have all been touched by the tragedy. Wherever we were around the country, or around the world, our first response was to do whatever we could to help those whose lives have been directly affected by the quake. Within hours of the 6.3 magnitude shake on 22 February, many members of the Food and Grocery Council had convoys of trucks on the road carrying products into Christchurch.Thousands of pallets of food, water, medicines and grocery supplies were donated in the critical days immediately after the earthquake, as well as cash donations to the Red Cross and Salvation Army. In the weeks since, donated products have continued to roll in for affected Christchurch residents, and the teams of rescue workers. Every single one of the Food and Grocery Council’s 180 members has contributed to various appeals, provided goods for relief organisations, and worked hard to support our retail partners in getting its supermarket networks operational again. The Council’s chair (George Adams, Coca-Cola Amatil) and vice-chair (Pierre van Heerden, Sanitarium) have been working tirelessly on the ground in Christchurch to help the recovery efforts, both within their own companies and for the city as a whole. The speed of the response was mainly because our industry understands the critical importance of a reliable food supply. While people can usually endure a lack of power or sewerage after a disaster, even a hint that the food supply is at risk can create widespread panic very quickly. The outstanding efforts and generosity after the earthquake from companies around the country confirmed that, despite the incredible challenges created by the disaster, New Zealand still has a robust and reliable food network. Our industry’s actions have made a real difference to the relief efforts in Christchurch. The list of goods donated by FGC members is staggering and grows every day. It includes large amounts of water, milk, coffee, tea, breakfast cereals, bread, baby products, infant formula, toilet tissue, personal care products, sanitisers, home care and cleaning products, biscuits, snack bars, desserts, canned goods, poultry, noodles, ready meals, rice, batteries, soups, yoghurt and pet food. In addi-

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

tion, members have contributed cash to appeals, provided transportation, and donated staff time to assist with the clean-up and re-building. While the initial focus was on basic items and assisting the emergency efforts, members have also donated products such as chocolate and liquorice. Large amounts of Mars and Cadbury chocolates were delivered to workers inside the cordon. It was a rare event for people to be allowed through the cordon but they reported the treats made the heroic emergency workers smile, if only for a moment, in the most testing of circumstances.

The situation on the streets of Christchurch remains tough, but from a grocery perspective there are steady improvements every day. As a relative newcomer to the FMCG industry, I have been incredibly proud to witness the relief efforts by all members.The Council’s role has been to help co-ordinate those efforts and to liaise with government ministers and relief organisations. Our overall focus is on ensuring all needs are met – getting products to where they are most needed, rather than inundating relief organisations with packages. The situation on the streets of Christchurch remains tough, but from a grocery perspective there are steady improvements every day. At the time of writing this some stores remain closed but, across the board, the grocery network is close to fully operational, and in a generally positive frame of mind. Many supermarkets are reporting strong customer demand and support. The re-opening of supermarkets is an important milestone in a community’s recovery process and is still the best way of ensuring a reliable food supply.The grocery sector is as close to ‘business as usual’ as can be expected in the circumstances. Our thoughts remain with all those affected. april 2011 FMCG

When it all came A case study from Coca-Cola Amatil.

t 12.51pm on February 22, like everyone in Christchurch our business was tossed upside down; not to the brutal and tragic extent of many others in the city but enough to dramatically change the face of our operations and manufacturing at our soft drink plant in Woolston. This is the story of our response, recovery and resumption of CocaCola Amatil (CCANZ) operations in Christchurch and most importantly our lessons learnt. Our senior leadership team just happened to be on site in Christchurch when the earthquake struck. Whilst daunting for them, the fact that both the managing director and head of supply chain were present proved fortuitous as they gained first-hand insights into the scale and impact on our staff and facilities. This allowed prompt and expedient decision making in the immediate aftermath. The facts facing us: our site at Woolston had structural damage; our manufacturing line was out of action amidst an almighty mess of thousands of cases of product. What to do? In order of priority – make sure our people are okay, get structural engineers to assess the site, begin a clean-up and attempt to resume business operations only when it was deemed feasible after due con14

FMCG april 2011

sideration to both the challenges facing our staff and our customers.

People first Two people working in our distribution centre suffered broken bones and crush injuries from falling boxes in the high bay racking area. They were immediately assessed and transported to hospital and subsequently have recovered well. All staff were sent home to be with their families and to take stock of the impact of the quake on their personal lives; their resumption of duties has been gradual, with their personal circumstances considered foremost. One lesson we learnt from the earlier earthquake on September 4 was to factor more time into our recovery plan for staff to recover fully. Given the magnitude of this event we were particularly careful to employ a full repertoire of employee support mechanisms, but most importantly not to rush people to return to work. We offered both general support to all staff but recognised that this event required a personalised case by case consideration for employees who were facing a raft of personal challenges. Within a few days we had an HR practitioner resident onsite to assist our managers to work through the multitude of staff requests and considerations. We offered EAP trauma counselling, allowed employees to cash in long

service leave or days in lieu and set up a facility for hardship grants. In addition, on a case by case basis, we are also assisting those who need a break away from Christchurch to temporarily relocate. We’ve also redeployed manufacturing staff to other areas of the business whilst essential repairs to our bottling line were completed. Our Christchurch staff have been simply magnificent.They’ve worked in less than ideal circumstances, sometimes from homes that were without water or power but driven by a strong desire to help CCANZ get back to business. We recognise their resilience and tremendous strength of character, but we are also mindful that this time there’s an accumulated effect from both last year’s quake and from the sheer scale of this event. In the clean up post September 4 we observed the adrenaline response kick in followed by a subsequent slump physically, mentally and emotionally and that’s why this time we made sure there was less pressure on local staff and more time factored in for recovery. Communications business wide are vital during times of crisis and we have ensured daily updates to both Christchurch staff and the wider company to fully communicate both the assessment, clean-up and return to business plans. They say knowledge is power and in such times of uncertainty firm guidance communicated

featu re

tumbling down “As this article goes to print our facility at Woolston is back up and running, an incredible result from a truly dedicated team – just look at its status on the afternoon of February 22.”

effectively cannot be underestimated in helping a team recover. We received a call from Civil Defence on February 23 seeking clean water supplies. We dug out what we could recover from our distribution centre and offered it to them. On their own initiative the Supply Chain team in Auckland immediately despatched 10 B trains with bottled water. We also flew 10 pallets via the airforce to Christchurch Hospital. To this day we continue to work with Civil Defence to assist them with their water and hydration needs for search and rescue staff, emergency services, welfare centres and hospitals.To date we have donated bottled water to the value of $500,000, plus staff nationwide have contributed individually through a company matched donation to the Red Cross Earthquake Appeal Fund.

Operations Our two manufacturing plants in Christchurch, producing juice and carbonated soft drinks represent a little over 15% of our business in New Zealand. We employ 142 staff across two sites; Keri Juice in Hornby and our soft drink and distribution centre in Woolston, which has borne the brunt of this quake with both structural damage and significant stock loss (400,000 cases). We estimate our total insured loss to be in

excess of $10 million. Changes to our supply chain were immediately enacted as we moved to service our South Island customers from our Auckland and Palmerston North distribution centres. With admirable logistics planning we were able to meet these needs albeit with, in some cases, a delay to scheduled deliveries of up to 72 hours. Damaged roads in the region combined with many customers proving difficult to contact led us to create and deploy an ingenious solution for getting product to those in need. We called it ‘man (or woman) in the van’ and it’s a return to the traditional approach of a personal call to customers by a sales rep with a small van loaded with product. It’s proved amazingly successful and it’s one of the ways we’ve adapted our usual sales model to service actual needs. Given that many of our customers are within the Red Zone of the CBD we recognised the immediate need to show compassion and understanding with credit terms and scheduled bill deliveries. We have offered delayed payment terms and will work with individual business owners to help them to resume trading when and if that’s possible. In conclusion, managing director George Adams says: “It’s not often you can write a disaster recovery plan

(which we revised after the September event) and then get to actually test it out five months later. In terms of the impact on our business and the country in general, I felt the green shoots of a recovery were appearing however, sadly, this event will have stalled it again. Consequently we are anticipating a very tough 12 months ahead for our business. “Removing the load and expectation from local staff immediately has resulted in us being at a more advanced stage of recovery on a dayby-day basis compared to last year. Despite the increased damage sustained we’re in better shape because we immediately and comprehensively supported our Christchurch operations from our other manufacturing and distribution centres. “We have big plans for the future of our manufacturing operations in Christchurch, but that’s another story.”

april 2011 FMCG

n a rgo n

Supporting Canterbury The road to recovery will be long and hard, says Trina Snow. Trina Snow, executive director, NARGON.

The thoughts and hearts of all NARGON members and staff are with the people of Christchurch, particularly those in the retail grocery industry who have been affected by the 22 February earthquake. With the rest of the nation, we are deeply saddened and shocked by the tragic loss of life and injuries. We have also witnessed the widespread damage to property – including stores, stock and houses.To all those affected, as the Grocery Retailers’ Association, we look to stand beside you during these times of loss and sadness.We share your determination to rebuild Christchurch and members are already supporting a number of significant relief efforts. It has been inspirational to see the rapid and often heroic response from the emergency services, local and national Government, state agencies, charities and individuals looking to help. The amount of humanitarian aid delivered after the quakes has been incredible and helped avert many more tragedies. While a number of stores remained closed or operating at very limited capacity, large numbers have re-opened and are serving their communities admirably.The opening of local supermarkets and grocery stores is seen as a major step on the road to recovery. The main website for emergency information remains the Ministry of Civil Defence (www.civil defence.govt.nz/) while the Canterbury Employers Chamber of Commerce has created a business-focused site to help recovery efforts (www.recovercanterbury. co.nz). There is also a disaster recovery toolkit on the Government’s Business webpage (www.business.govt. nz/managing/implementing-health-and-safety/ recovery-toolkit-for-christchurch-businesses). On the Government side, the Ministry of Social Development (www.msd.govt.nz) has announced the Christchurch Earthquake Support Package for employers and employees in Canterbury affected by the devastating earthquake. The Christchurch Earthquake Support Package is made up of two components. The first is the Earthquake Support Subsidy. This is

FMCG april 2011

a subsidy for employers who believe they are going to remain in business and want to keep their staff while working to re-open. Earthquake Job Loss Cover is a direct payment for employees for a period of six weeks.This applies to those staff who are unable to contact their employer or where the business has closed permanently. The Department of Labour (www.dol.govt.nz or 0800 20 90 20) has produced information to help businesses make safe, sensible and practical decisions in this difficult time.The topics covered include health and safety, wages, leave, flexible work and terminating employment relations. Be sure to contact them if you are affected. For those outside Canterbury, there are a number of ways to help. The major appeals are the official Government appeal (christchurchearthquakeappeal.govt.nz/) and the Red Cross appeal (www.redcross.org.nz/donate). The Ministry of Consumer Affairs has warned that a few unscrupulous people are running scams looking to take advantage of the recent tragedy – so people should check carefully before giving. Organisations and businesses all over the country are also raising money at the workplace, running collections, donating goods such as food and bedding, providing accommodation for families or offering jobs to those left out of work in Christchurch. The Ministry of Social Development is co-coordinating offers of earthquake assistance – including offers of accommodation outside of Christchurch (earthquakehelp@msd.govt.nz). NARGON commends the actions of many members who have already dug deep to give generously. However, the road to recovery will be long and hard. Politicians across the spectrum have united to work for the people of Canterbury.A number of MPs have been personally affected, while others have travelled long distances to work on the ground. Most have put aside party politics.The Prime Minister looked to sum up the mood of the nation: “We feel your pain, as only a small nation can, for none of us feel removed from this event… All New Zealanders have a piece of our heart in Christchurch. All of our lives are touched by this event. We feel connected to your suffering. Your tragedy is our tragedy. Today I want Christchurch to hear this message: You will get through this. This proud country is right behind you and we are backing you with all our might.The world is with us. “Christchurch, today is the day your great comeback begins.” Kia Kaha.

• 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.

‘Cheesemaker Of The Year’ 2011 Visit www.fmcg.co.nz to see this year’s NZ Champions of Cheese Awards winners and to find out which bright young talent was named ‘Cheesemaker Of The Year’.

New Zealand’s most tender, tasty lamb Which butchery was named ‘Glammies’ retail winner 2011? The experts from Beef + Lamb New Zealand reveal the details on www.fmcg.co.nz

New products

Building trust as a team

PL US

From 100% NZ Farmed Kiwi Bacon to Ceres Organics Raw Food Bars – take a sneak peek at some of the latest product launches online.

It’s not difficult to deliver on your promises, says award-winning speaker, author and mentor Hannah Samuels. Find her expert advice online at www.fmcg.co.nz

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

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

PRIME Pears, apples, feijoas and Kiwi kiwifruit. Beef and fat lamb and venison. Blue cod, snapper and tuna; squids and crabs are good also. Red cabbage, Brussels sprouts and kumara. And this is the best time for mutton birds and Bluff oysters.

FINISHING Our apricots, nectarines and peaches. New Zealand strawberries, beans and sweetcorn.

FISH Supply of inshore species will slow down as we move into late autumn. The main season for tarakihi is slowing and finishes in June but there will always be some around. Gurnard is always available; a lovely fish you can’t afford to ignore. Trevally and kahawai are still in good nick at this time of year and are greatly underrated inexpensive fish species. There has been a lot of very good flounder on the market and it is a wonder we do not make a better use of this fish. There will be lots around in the short term, but the fishing will be quietening down as we get closer to winter. Supplies of blue cod (which is not actually a cod) will be increasing as the albacore fishing season starts to run down and these fishermen head south to the cod fishery. So even the Auckland market may see some, if you guys down south relax your exclusive claim to it. Tuna quality is still good and the price is right.

MEAT All the hoofed animals are in fine condition, but the schedules have been rising. New Zealand meat prices are tied to the export schedule and the trend is up, I am afraid. There is a world wide shortage of protein and prices are at all-time highs. And domestically, as if that is not bad enough for our trade, the Kiwi dollar has also dropped pushing local trade prices even higher. There is already some resistance from consumers to these higher prices, but we and they will have to learn to live in the real world. We have to teach our customers to change their habits and appreciate smaller cuts and value our great quality farm-raised red meat for what it is – the best in the world.

The next month should see some stabilisation in supply but do not expect much of a price drop. Come early spring (our low season), there is going to be an even greater shortage of supply and logically a price hike, not to mention an increase in demand due to the thousands of extra visitors for the RWC. So be loyal to your supplier, don’t do the dirty on him by chasing every shortterm cheap deal out there, and your supplier will be loyal to you when the crunch comes this spring.

Beef Schedules rose again in March, and now all grades of beef are at yearly highs. Local trade schedule prices are up at between $4.30-$4.60/kg, that is 85c-90c/kg ahead of last year, and the trend is rising.

Lamb Nationally the lamb kill is reported to be 17% down on last year and February saw early highs in lamb schedules and March has seen further increases. Lamb is at $6.14/kg at time of writing, nearly two dollars more per kilo than at the end of February last year; get used to it!

Mutton And if you think beef and lamb are bad, try buying mutton…

Farmed Venison Venison remains at the top of the price tree. It may be that we have to get used to higher prices for meat – competition for land use means that farmers can no longer produce meat for the same low prices they have been receiving.

Processed Pork Products Much of the processed pork we see, such as salami, sausages, bacon and ham is made from imported raw carcass meat. The label then says ‘product of New Zealand’ and fails to mention the

fact that the pig was actually farmed overseas, and that the producers did not have to meet New Zealand’s very good regulations when it comes to matters like feed and hormones. That is another good reason why we need decent country of origin labelling in this country. So if you want New Zealand processed pork products look for the 100% NZ Pork label.

FRUIT As stone fruit volumes fall and prices firm this month so pip fruit volumes will increase. All the New Zealand seasonal apples are arriving in numbers so there are no excuses for the imported rubbish. We now have the ‘Delicious’ varieties and the Braeburns in, followed closely by Fuji and Pacific Rose, then good old Granny Smith and towards May Pink Lady apples. This month is also the month for

pears, with good volumes coming in and good value, but the glut of avocados is over I am afraid – it was good while it lasted though. We are seeing a lot of the Kent and Keitt varieties of mango (the green ones) from Mexico and some organic ones from Peru at present and very good quality they are too. This variety seems to keep better and bruises less easily. All varieties of New Zealand grown melon are around to some extent but it’s the rock and honeydew that are best now, although not for much longer. Then there will be imported varieties available. This is passionfruit season, but it will be all over in a couple of months.

month and leeks and celery will also be in top condition. By the end of April courgette, aubergine and tomato volumes will have fallen off, prices will be rising and we will see more of the imported product from now on. Supplies of New Zealand beans and sweetcorn will be dropping off. All varieties of new season kumara will be in the market in good volumes. We are also now well supplied with Brussels sprouts from the central North.

VEGETABLES Most of our New Zealand grown summer and autumn vegetables will be shortening up. Pumpkins will be at their best this

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april 2011 FMCG

FEAR FACTOR How to make the most of your deli counter? Delmaine brand manager Kathryn Awde explains.

Some consumers still seem to fear the deli counter – all those glossy olives, wrinkled dried tomatoes, and chargrilled vegetables peeping at you from a bowl. Seen only through a glass cabinet, the unknown is often avoided. You can recognise these shoppers by the way they walk slowly past, squinting at the bowls, wondering what some of the products are. Deli cabinets should be an inviting window, where those perhaps unusual products are a gateway to experience some new and different tastes. And the best thing is, shoppers don’t need to get half a kilo or a jar from the shelf to do this, they can grab a spoonful to try in the comfort of their own home. Delis allow us to help customers to perhaps overcome their fear to taste the unknown, and to purchase as little or as much as they wish. In Italy, and in many fresh food markets, if you are hovering in front of the cabinet, and unsure if those tomatoes are really supposed to look that wrinkled, or wondering what that green berry with a stem is (that looks a bit like a tadpole), it’s refreshing to see that shoppers will be put at ease, and be engaged by the person behind the counter. To have your hesitation lessened, to be

encouraged to be brave and coaxed into trying a piece or two of the delicacies. I love talking about food and to be honest I’m not sure I know anyone who doesn’t! So next time you see someone in front of your deli cabinet and they look a little unsure, don’t be shy to offer some help, or even ask if they would like to try something to taste. They will appreciate the interest and you can have an opportunity to talk to someone about your knowledge and potentially be able to help them. One of your most valuable assets you have is this knowledge, and one of the best things you can do for your customers is to share it. Not only do you have the incentive of having more interaction with your customers on their weekly shop, you will also have them walking away with something new and some exciting ideas.

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D E L M A I N E

The deli is the ideal area of the supermarket for your customers to visit if they are entertaining, particularly if they are making an antipasto platter. This traditional Italian dish is ideally suited to serve over deli products. Because of the flexibility of the ingredients, and ability to make each antipasto platter individual, it also offers you an ideal opportunity to engage in some extended food chat with your customers. You can share your

experiences and ideal combinations and encourage them to be creative with their efforts. As a starting point here is some information on this colourful dish and some ideas to get you going. Antipasto (plural antipasti), means “before the meal” and is the traditional first course of a formal Italian meal. Traditional antipasto includes cured meats, olives, roasted garlic, peppers, mushrooms, anchovies, artichoke

hearts and various cheeses. However, the best thing about antipasto is that – there are no rules – (which means you can’t go wrong). Antipasto can be simple ingredients, from a handful of olives, raw vegetables (carrots, celery, beans or capsicum) pickled or marinated, served with some fresh or toasted sliced bread. Add some sliced up sausage, or ham and tomatoes, either fresh or sundried. The choice is yours. For some more exotic twists throw in some melon and figs, or other dried fruit. The only thing to remember with an antipasto is that there needs to be a selection, and the creative combination of the antipasto is important. The composition should appeal and indeed tempt both the eye and the palate. Placing all these colours and different textures on a

platter is instantly appealing. White crumbly feta, next to glossy black or green olives, and shiny ruby red sundried tomatoes – right there you have the colours of the Italian flag! With a wide selection of antipasto on the platter you are also catering more easily to everyone’s taste buds. It’s so easy to do and who doesn’t like easy when it comes to entertaining?

kathryn.awde@delmaine.com • www.delmaine.com april 2011 FMCG

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Winter Warmers As the temperatures begin to plummet around the country, consumers start looking for soups again. FMCG examines some of the best-sellers and innovations in this highly competitive category.

AGGI is a leading player in Total Soups with a strong presence in both Instant and Packet Soup. Nestlé New Zealand category manager Richard Brown explains: “Current Maggi contribution is $15.3 million sales to the soups category, which was made up by $10.3m Packet Soup and $5m Instant Soup.* “It is a little known fact that Maggi Onion Packet Soup remains the #1 sku in the Soups category (3.7m

FMCG april 2011

units annually, equivalent to $4.3m of scanned sales*). This product continues to go from strength to strength on the back of the highly successful partnership with Nestlé Reduced Cream – a key ingredient for the original Kiwi dip. For the latest 12 months Maggi Onion Soup has grown +3.5%* (value) / +4.0%* (unit) and shows no signs of slowing down,” says Brown. He adds: “As we approach winter, consumers will look to warm themselves up with soup, in

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THE BREAKDOWN Current MAT to 28 Feb 2011

particular Instant Soup which is the #2 segment (behind Canned) generating $17.8m of sales.* “A growing trend is the Instant Soup premium 2-serve segment, which is now 34% of all Instant Soup sold* and is gaining more space on shelf on the back of new offerings. In line with this trend, Nestlé has introduced in 2011 a number of new exciting Maggi premium 2-serve offerings to the market,” says Brown. It has launched a delicious new crouton range – including Cream of Chicken w/ Croutons, Pumpkin w/ Croutons, Cream of Mushroom w/ Croutons, and Pepper Steak & Mushroom w/ Croutons. Brown comments: “In order to capitalise on the increasing demand for the more adventurous flavours offered within the premium 2-serve segment, Maggi has also launched an authentic Asian Tom Yum and Asian Chicken & Corn. And given the Asian inspired sub-segment is already a popular choice, retailers should expect this growth to continue (+6.1% unit*).” Further enhancing nutrition, Maggi has also launched a new Wholegrain Instant Soup with the ever popular flavour of tomato. Brown says: “The majority of us like to consume soup at lunchtime**

(46%) and we also like to consume it with toast and/or bread** (47%). As a result, the Maggi team will be out in force providing samples of some of these new products during winter at selected outlets. Watch out for them and get to taste the delicious new Maggi range of soups.”

Total Soup: $61.477m Val % Chg YA -4.9 Total Canned Soup: $26.202m Val % Chg YA -8.3 Total Packet Soup: $11.259m Val % Chg YA -0.8 Total Instant Soup: $17.847m Val % Chg YA -2.5 Total Cereal Soup: $4.031m Val % Chg YA -6.5 Total Soup Mix & Pulses $2.137m Val % Chg YA 2.7 * ACNielsen New Zealand ScanTrack (Databank)

Sources: * Nielsen ScanTrack Total Supermarket MAT Data to 27 February 2011. ** Sweeney Research February 2010.

Return of an old favourite Delmaine Fine Foods produces a select range of soups made up of three classic varieties – Pumpkin, Chicken Chowder and Seafood Chowder; two added-value pasta soups – Chicken Noodle and Minestrone; and, returning this winter, the unique Kumara, Ginger and Lemongrass. All Delmaine soups are packed in 600g standup pouches. Delmaine Fine Foods group product manager Micheal Bennett says: “Delmaine is a key player in the fresh soup market and is dedicated to providing the best quality and range to meet consumer demand. This winter that consumer demand has seen the return of an old favourite in Kumara, Ginger and Lemongrass. A light, but filling soup, it blends the best in fresh NZ produce with a touch of the East. The sweetness of

the kumara is balanced by the zest of lemongrass and warm spice of the ginger. “Delmaine, as a responsible supplier, and being aware of space constraints at shelf level, has deleted the Delmaine Roasted Capsicum and Tortellini Soup to make room for the return of Kumara, Ginger and Lemongrass.” The fresh soup category is highly competitive and this winter will almost certainly see a continuation of price promotionally-driven activity. Bennett comments: “Last year did see some lift in average EDP pricing and this will hopefully continue this winter. Higher retails could possibly reflect in higher list and cost pricing, which could in turn create potential for greater new product development. The category is likely to be dominated again this year by Pumpkin, Seafood and Chicken variants.” april 2011 FMCG

cate go r y c h e c k Vegetable 535g; Big N’ Hearty Beef Hotpot 535g; and Big N’ Hearty Vegetable, Beef & Pasta 430g. Available now within Progressive, with other accounts expected to follow in the coming months.” Range refreshment is vital in a category where consumers seek variety and news. “Wattie’s Very Special Creamy Chicken 535g launched last season is now the 12th performing sku* in the Ready to Serve soup sector, a clear reflection of our NPD success,” says Allen.

Driving growth Kerry Allen, marketing manager Wattie’s Soup, told FMCG: “Wattie’s Soup is worth $19.6m in annual sales and is the market leader within the Wet Ambient Soup sector with 77% share, achieving record shares last soup season*. Within the Ready to Serve soup sector Wattie’s has the Very Special, Big N’ Hearty, and Wattie’s Soup for One sub brands, in addition to Wattie’s condensed soup. Each of these is positioned to appeal to different consumer needs, from the home-style favourites that are just that little bit more special, to hearty satisfying recipes and our versatile condensed soup offerings. Wattie’s holds market leadership in both the Ready to Serve and Condensed soup sectors, and within the Ready to Serve sector the leading two sub brands, Wattie’s Very Special worth $10m and Big N’ Hearty $4.2m*.” Allen adds: “As the market leader, Wattie’s objective this winter is to drive growth back into the category and get soup top-of-mind with consumers again. Our goal is to encourage existing consumers to consume soup more often, improve shopability and space on core selling lines, optimise ranges, and drive growth through NPD and marketing support.” Allen says: “In February 2011 we launched four delicious new soup recipes, simple home-style favourites: Wattie’s Very Special Tomato & Basil 535g; Wattie’s Very Special Country 24

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*ACNielsen MAT Total Supermarkets to 30 Jan 2011

Fit for a King King Traditional Soup Mix has a long history of making great soup for New Zealanders. “Our Traditional range of soup mix includes: Vegetable; Hearty Vegetable; Country Chicken; Minestrone; Pea & Ham; Corn and Bacon; and Alphabet Soup,” says Hansells Food Group senior brand manager Susan Harvey. Each packet of King Traditional Soup Mix contains everything consumers need to create the perfect homemade soups, or use a base to create their own masterpiece. King Traditional soup mixes are low in fat and make for an economical meal for the family. “King Soup Singles allow you to enjoy real soup, real quick,” explains Harvey. “Each pack contains real concentrated soup ingredients so all you need to do is add boiling water and drink from the cup. King Soup Singles are perfect for on-thego. With no preservatives, or MSG, the soups have natural colours and flavours. They are also low in fat – the ideal lunchtime or afternoon snack.” Harvey says the King Soup Singles were launched in three great flavours, in April 2010, which have been very well received by the trade and consumers: • Chicken and Corn • Tom Yum • Tomato Minestrone.

Warm up your sales and lunchtimes this winter with MAGGI Soup for a Cup!

NEW Try the New premium MAGGI 2 serve offering today Thereâ&#x20AC;&#x2122;s something for everyone!

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cate go r y c h e c k

“King Vegetable soup is the number two selling sku in the total soup category and is a staple in many Kiwi homes,” she adds. Harvey says King Soup Singles will be launching some new flavours this year, including Leek and Potato, Chicken Noodle and Wonton.

Naked soup The Naked brand has been available in the soup category with a range of organic and natural products over a number of years. Last winter it offered a range of locally-sourced ingredient soups under the banner “Naked Locals”.

FMCG april 2011

Sourced from the identifiable farming regions around New Zealand the Naked Locals range includes four delicious flavours: Pukekohe Potato and Leek; Ohakune Carrot and Coriander; Hawkes Bay Organic Pumpkin; and a creamy Asparagus and Spinach soup from the Bay of Plenty. “Naked Locals was the key driver of the retail soup category, and already represents over 50% of our soup portfolio,” says LHF marketing coordinator Gal Pyzhanov. She adds: “We will continue to extend our Locals offering with delicious gourmet quality wholesome soups including a Canterbury Mushroom Soup with Mascarpone and Thyme, Kaipara Kumara Soup with caramelized onion and sour cream, and a scrumptious Marlborough Sweetcorn & Basil Chowder. “Consumers have shown a distinct preference for fresh presentation of soups on the shelf. As a consequence the pouched products from Naked have enjoyed significant growth. Flavours tend to remain relatively traditional although the addition of interesting herbs and spices, along with underlying notes of cheeses and creams are making for products that do have a cuisine quality to them,” adds Pyzhanov. New Zealanders are becoming increasingly conscious of how their behaviour impacts the environment. It makes perfect sense to source and eat foods grown locally.

“New Zealanders have been very supportive of locally grown foods where ingredients are recognised to be from well defined regions,” comments Pyzhanov. Naked Locals will be supported this winter with TVCs that identify the source of the new products. Instore product samplings will also take place nationally to introduce the new Locals range.

Tasty Pot The Tasty Pot Company won the overall Massey University Supreme Award at the New Zealand 2010 Food Awards. Chosen ahead of more than 90 overall entries, it was also named winner of the Zespri Award for Innovation in Food Products and winner of the Mitech Convenience and Meal Solutions Award. “Our team at Tasty Pot have a hunger for good, honest food,” says company founder Natalie Vivian. “We’ve been watching the soup category in New Zealand for a while now and we started tinkering away in our kitchen, to see if we could put our interpretation on what makes a good soup. We’re pretty proud of what we’ve come up with.” The Tasty Pot soup range includes: • Free Range Chicken & Leek Soup with potato, lemon & fresh tarragon. • Velvety Beetroot Soup with dill & a touch of crème fraiche. • Chorizo & Chestnut Soup with chickpeas, tomatoes & fresh thyme. • Creamy Thai Pumpkin Soup with lemongrass, ginger & coconut cream.

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Vivian explains:“Each pot contains three to four portions of vegetables towards the recommended 5+ per day, is low in fat, and contains no colourings, additives or preservatives. Made from the finest local ingredients we could find, it’s enough to share with another... if you really love them.” Tasty Pot soups will be available from April 11 in most major New World supermarkets and food stores nationwide, with a recommended retail price of $6.99 for a 585g pot.

CarboNZero offerings Pitango is proudly organic and CarboNZero accredited. Most products in the range are free-from in some way, be it gluten free, dairy free, vegetarian or all of the above. “We do not use preservatives or artificial ingredients and use GE free ingredients,” explains product development & innovation manager Annabel Stewart. “Where possible, organic meat is used and when organic is not available it must be free range,” she adds. At the beginning of March 2011 a new range of soups was launched, including Pitango Pea & Ham Soup; Pitango Organic Sweet Potato Soup with Coconut & Ginger; and Pitango Organic Chicken Noodle Soup. “These new soups are starting to gain wide distribution, having been received well from the trade in all accounts with good ranging support,” says Stewart. “Consumers’ main drivers are taste, health and ‘free-from’. First and foremost if it’s not tasty they will not buy the product,” she says.

Sun Valley soup mix Sun Valley Foods currently offers a comprehensive range of dried soup ingredients and beans to the New Zealand supermarket trade, says sales

and marketing director David Frost. “Over the past few years we have made a concerted effort to supply only locally grown soup ingredients, which are sourced from growers located from around the midCanterbury region. We then blend the barley, peas and lentils at our Christchurch factory to produce our popular ‘Sun Valley’ soup mix. This season we will also be supplying New Zealand red and brown lentils from our contract growers for the first time. All our beans and pulses are currently sourced from established packers in both Australia and North America,” explains Frost. “Our products are extremely shelf stable which makes them ideal ingredients to have in the pantry as a healthy addition of protein and fibre to many recipes at an economical price,” says Frost. Sun Valley Foods is 100% New Zealand owned and operated and is based in Auckland and Christchurch.

Turkish Kitchen Luciell McIlroy, managing director Brelita Foods, told FMCG: “Our product range in the supermarket chilled section is under the Turkish Kitchen brand. In the past 12 months our company has spent time researching trends of consumer needs in both flavours and their quick and easy needs for packaging options. The soup category is by nature a health-driven category in terms of product offering and is becoming extremely competitive. Our company is launching a range of soups that will meet the customers’ expectations in all three major decision-making areas such as, product quality and flavours, user friendly (quick & easy), plus packaging and pricing that reflects value for money.” april 2011 FMCG

Free to range? Animal welfare is the focus of an ongoing, heated debate in New Zealand. FMCG talked to some of the stakeholders in the industry.

ust a few years ago, you would have had difficulty finding ‘free-range products’ in supermarkets. Today however, they are in high demand with consumers who are increasingly concerned about animal welfare issues. But what does animal welfare mean, exactly? The New Zealand Veterinary Association defines it as follows. Animal welfare is the state in which an animal is in reasonable harmony with its environment, has adequate fulfilment of physical, health and behavioural needs and is not subjected to unnecessary or unreasonable pain or distress. New Zealand veterinarians also acknowledge the complexity of animal welfare as a public policy issue, influenced as it is by scientific, cultural, ethical, conservational, economic and political factors.

Keeping standards high Many consumers want to know that their food is produced in an ethically acceptable way and not behind closed doors, says Mike Schellkes, managing director – Eco Egg Co. Among the company’s offerings in supermarkets are Bio Eggs (free-range organic certified), Eco Eggs (cottage type free range) and AWF (Animal Welfare Food free range). “All our company’s products are produced in an animal welfare friendly way,” explains Schellkes. “New Zealand could have the highest free-range egg production standards in the world, which could lead to tremendous export 28

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opportunities. The importance is to keep the current standards high and not to dilute them. New Zealand’s climate and the availability of land makes it an ideal production base for world-class free-range egg products.” Eco Egg Co was founded in 1993 by Schellkes after completing post-graduate studies in the area of environmental agriculture. He had a vision of using environmentally friendly farming methods with high animal welfare standards. He soon established a network of individually contracted family owned and run egg farms, forming the production base of this cottage type industry. The company now markets its unique product lines of alternatively produced eggs through most retail outlets across New Zealand and has been well positioned for more than 18 years. “Eco Egg Co is market leader in the retail market of free range and organic eggs in New Zealand with established export markets in Asia,” says Schellkes.

A big Blue Tick for Henergy As the country’s largest cage-free barn egg producer, Henergy is only too mindful of how important animal welfare issues are to a successful growing brand. With barn farming, hens are kept in spacious purpose-built barns, free to wander around and lay their eggs in privacy and comfort while being 100% protected against disease and predators. It is the least common egg farming method in New Zealand and, according to Henergy ceo Darren

featu re Perry, consumers don’t know much about it. “We spend a lot of our marketing budget educating consumers on barn egg farming and actively supporting cage-free farming methods. Of course, we genuinely believe that barn farming is the best cage-free environment in which to keep hens and produce the highest quality eggs,” says Perry. Henergy is one of only a handful of egg producers in the country to be SPCA approved and awarded its much-coveted ‘tick’ – a third party, independent guarantee that Henergy eggs come from a highly ethical and cruelty-free egg farm. “By joining the SPCA Blue Tick scheme, we made a stand against unethical farming methods, promoting a better life for New Zealand’s egg laying hens,” says Perry. “Most importantly, by partnering with a like-minded organisation and one of the foremost organisations for animal welfare issues, we can help eradicate traditional battery cages in New Zealand.” Henergy believes that through ongoing education and promotion of schemes such as the SPCA Blue Tick, New Zealand will hopefully one day follow the example of Europe and California and ban traditional batterycage farming once and for all. “Unfortunately, there is still some work to be done as battery cages remain the mainstream egg farming production method in this country to date,” says Perry.

Looking at colony systems

for egg farmers estimated by MAF and independents at between $45-$150 million (depending on the transition time). “Mainland has supported NAWAC on this proposal through its significant investment in a commercial colony unit. This unit has been part of a joint EPF and MAF Sustainable Farming Fund project since 2007 looking at the feasibility for these systems for the New Zealand egg market. Findings have been positive and included input from Bristol University, which is renown in hen welfare research,” says Guthrie. “Mainland very much believes in a holistic approach to egg production. Hen welfare needs to be balanced with human health and welfare to ensure a long-term sustainable supply of good quality affordable protein. All egg production systems have compromises, including free range and barn systems. Colony systems are proven to offer acceptable health and welfare needs for the hens, yet still allow eggs to be produced that make them available to ALL consumers,” says Guthrie.

Freedom Farms “We would like New Zealand to become the world leader in welfare friendly farming,” says Gregor Fyfe, co-founder of Freedom Farms. “Freedom Farms was started because we were concerned that the animal welfare issues that consumers had were not being addressed. Consumers simply could not easily vote with their wallets and buy products from brands that did not compromise on animal welfare issues.

“The issues around animal welfare are the same worldwide. The main concern consumers have is that when we farm animals we need to ensure that the animals can, as a minimum, always display their natural behaviour. Sadly, animals confined in cages and indoors in barren concrete pens and sheds cannot. Nor can animals that are confined in large numbers in very small spaces. “We have focused first on the pork market. This industry worldwide is extremely intensive. We know consumers are prepared to pay more for pork and pork products if they can be sure that the animals have been farmed without cages, crates and pens. We supply nationwide fresh pork and smallgoods that come from NZ farms that are independently audited by the SPCA and conform to the SPCA’s animal welfare code. “We only sell products that come from farms that are third party certified (SPCA) and meet strict farming code and ethical standards. “We are planning to release products in all categories where ‘farmed animals’ are involved. We believe consumers’ concerns are growing and they are looking for products they can trust on animal welfare,” Fyfe says. “We don’t see the issue of raising the ‘welfare bar’ as the sole responsibility of farmers. It is over to consumers to use their purchasing power to send a signal to producers that they will pay more for ethically farmed goods. To achieve this, retailers simply need to offer consumers the choice on the shelves.”

Michael Guthrie, managing director Mainland Poultry, offers another point of view. “Mainland Poultry supports the National Animal Welfare Advisory Committee (NAWAC) proposal to phase out current layer hen cages over a reasonable period of time. Colony systems comply with welfare laws allowing hens to exhibit a range of natural priority behaviours. However, this move will involve enormous cost april 2011 FMCG

Free-range chicken in demand Demand for free-range chicken is growing rapidly and Rangitikei Corn Fed Free Range Chicken has built an impressive reputation for producing healthy, tasty chickens over more than a decade. The natural properties of corn give Rangitikei chicken its distinctly mouth-watering buttery flavour and freedom out in the sun ensures for a beautiful golden meat that is rich in texture, freshness and depth of flavour. Rangitikei Chicken is available as fresh whole chickens or in convenient portion packs of breast fillets, thigh fillets or drumsticks. Rangitikei Hot Cooked Chicken is also available from the deli hot cabinet in selected supermarkets. From another supplier come Waitoa chickens, which

Farm-raised deer do what deer do best If New Zealand consumers are worried about factory farming they can be relieved in the knowledge that New Zealand venison is produced on freerange farms across the country. Innes Moffat, venison marketing services manager Deer Industry New Zealand, explains: “Cervena is your guarantee that deer grazed on grass all year round, were never subjected to intensive feedlotting and have never been treated with growth promoting antibiotics or hormones. “New Zealand farmers probably invented free-range farming; to them this isn’t a response to consumer trends, it is just the common sense way of doing things in this country. The rain falls, the grass grows – they know deer do best when left alone and allowed to get on with what deer do best, eating and growing,” says Moffat. “But deer in New Zealand are domesticated, they are used to being handled in yards, and the interaction with people doesn’t stress them too much. Everyone knows stress causes tough meat. Farm-raised venison is very, very tender.” Deer farmers and handlers have a responsibility to provide good care for the animals under their care, as well 30

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have been raised under accredited FREPANZ (Free Range Egg and Poultry Australia New Zealand) standards. “All Waitoa chickens are raised with access to wide open spaces during the day and are provided the finest quality feed,” says a company spokesperson. Their grass ranges are carefully managed, offering space to roam, and trees for shade and shelter. Waitoa free-range products include fresh whole chicken, skinless thigh and breast fillets, and drumsticks. “Waitoa Free Range Chicken is committed to quality and is a trusted name for your free-range poultry requirements. For more information contact your local distributor or visit www.waitoafreerange.co.nz,” says a company spokesperson.

as abiding by New Zealand animal welfare laws. The deer industry has an industry code of practice which specifies actions farmers must take to ensure good animal welfare practices. “As well as New Zealand law, deer farmers are increasingly being subjected to the QA requirements of international customers such as UK supermarkets. One risk for the industry is the imposition of foreign standards on New Zealand conditions, when the outcome might be less than optimal,” says Moffat.

Animal Welfare Codes The codes of recommendations and minimum standards for the welfare of animals at salesyards have been prepared by the Animal Welfare Advisory Committee (AWAC), which was established in 1989. AWAC consists of members from the farming community, animal welfare groups, the veterinary profession, animal behaviourists and the Ministry of Agriculture and Fisheries. It also includes the chairman of the National Animal Ethics Advisory Committee and an independent chairman. Extensive consultation takes place with industry and other interested groups in the development of codes. In February this year, NAWAC completed a review of the Animal

Welfare (Layer Hens) Code of Welfare 2005 and a draft code was released for public consultation. The review was programmed so it could re-examine the use of cages for layer hens in light of new research and current good practice. The draft code proposes that the use of cages be phased out. From a date to be determined following consultation, all housing for layer hens must provide sufficient space to allow hens to stand erect over all the available floor space and to extend and flap their wings. Housing must also allow hens to lay their eggs in a discrete nesting area, perch, and show foraging and dustbathing behaviour. This could include housing in enriched colony systems, barns (hens are loose inside a shed) and free-range housing (hens have access to the outdoors). NAWAC chairman Dr John Hellstrom said the challenge with non-cage alternatives for layer hens is that management has to be sufficient to deal with disease and aggression problems that can arise. “NAWAC does not want to see layer hens experiencing worse animal welfare as a result of any transition away from cages. Changes to management practices take time and are essential to ensure that welfare is improved.”

featu re Hellstrom noted that despite NAWAC proposing a phase out of cages it will not make a final decision on when this will occur until after public consultation.

Dry sow stalls to be phased out The Animal Welfare (Pigs) Code of Welfare 2010, was reviewed in December by the Minister of Agriculture, encouraging all those responsible for pigs to adopt the highest standards of husbandry, care and handling. NAWAC has completed its review of the 2005 code, which was programmed so issues surrounding the use of confinement systems – such as farrowing crates and dry sow stalls – in pig production could be re-examined. While the code does not immediately ban the use of crates and stalls, it does introduce a five-year phase-out of dry sow stalls and sets new limits for the amount of time they can be used for pregnant sows after mating, and for farrowing and lactation. Accordingly, The Animal Welfare (Pigs) Code of Welfare 2010 contains standards that: • limit the use of dry sow stalls to four weeks after mating from December 2012; • prohibit the use of dry sow stalls after mating from December 2015. Hellstrom says the code signals the direction the Committee and Government wants the industry to take and strongly encourages the identification and adoption of systems that improve overall animal welfare as soon as possible. “We have set a clear end point for sow stall use after mating to improve pig welfare and sent a clear signal that highly intensive, indoor pork production is not acceptable to many New Zealanders. This is a strong message to intensive producers that they need to make changes.” Hellstrom adds that the code reduces the maximum time sows can be confined to half that of current

standards by the end of 2012, and the maximum time is further reduced by the end of 2015 ensuring all sows have freedom of movement for the majority of their life. “These standards put New Zealand one step ahead of many other countries and help strengthen our reputation in animal welfare,” he says. Other significant areas addressed in the code include stockmanship; the provisions of food and water; shelter, disease and injury control, and welfare assurance systems. The code review took place in consultation with the pork industry, representatives of farmers, veterinarians

and animal welfare organisations. The Animal Welfare (Pigs) Code of Welfare 2010 is available online at http://www.biosecurity.govt. nz/animal-welfare/codes/pigs/ index.htm or by request from animalwelfare@maf.govt.nz.

Freedom Farm’s pigs.

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Cafe style at home Coffee bean costs are rising to all-time-high levels, putting enormous pressure on price points. FMCG took a close look at Coffee, Tea and other segments within the Hot Beverage category.

t seems like 2011 is going to be a big year for the Gregg’s instant coffee brand. In April Gregg’s will launch a new advertising campaign with the aim of raising the profile of Gregg’s Instant Coffee with category buyers. Gregg’s Instant Coffee is a Kiwi icon so who better to star in the new campaign but two other much loved Kiwi icons,The Topp Twins.The Topps will 32

FMCG april 2011

star in a series of ads through 2011 helping deliver the campaign message across the Gregg’s stable of instant coffee products. Cerebos supplies Gregg’s Mainstream Instant Coffee (powdered and granulated), Gregg’s Cafe Gold Freeze Dried, Gregg’s Cafe Gold Flavoured, Robert Harris Freeze Dried & Special Blend (powdered & granulated). Since the launch of Gregg’s Cafe

Gold Flavoured in 2009, Cerebos now has a brand in every segment of the Instant Coffee category. “We have several exciting NPD launches across our portfolio planned for later this year, watch this space,” says Instant Coffee category brand manager Fraser Shrimpton. He adds: “The total Instant Coffee category is valued at $142.9m MAT* and growth is relatively flat at 2.2%

hot beverages

THE BREAKDOWN Current MAT to 27 Feb 2011

MAT*. Flavoured Instant Coffee continues to be the largest growth driver, growing at 15.1% MAT (value growth)* and valued at $34.4m MAT*. New consumers are frequently entering. Larger pack formats (15 packs and 20 packs) are experiencing significant growth due to this product being a staple in many instant coffee drinkers’ pantries.” With the current economic climate consumers are more frequently looking for value for money offerings. Shrimpton comments:“This shift in consumer behaviour has a significant impact on the economy instant coffee segment shifting it back to growth in the last 12 months (Total Economy segment 5.4% value growth MAT*). Cerebos Gregg’s economy brand Special Blend performed exceptionally well currently growing ahead of the segment at 15.1% value growth MAT*,” he says. This growth of the Economy segment has had a negative impact on the Mainstream segment, which is currently in value decline at -6.5% MAT*. Gregg’s powdered and granulated instant coffee is already made locally in Dunedin and has been since the 1960s. Cerebos has made significant capital investment to install a dedicated Flavoured blending and packaging line in Auckland and will be the only local manufacturer of Flavoured Instant Coffee helping make Gregg’s the truly New Zealand brand of instant coffee. *Aztec Data to 27/02/2011

Real coffee made easy “Cerebos Gregg’s continues to be the market leader in Fresh Coffee with 23.9% value share*,” says Fresh Coffee brand manager Jodie Timmins. Three brands make up the strong portfolio: Robert Harris, barista@ home and Civo. “Consumers love fresh coffee, but there are significant barriers to higher use, including lack of confidence, inconsistency, mess and time. We’ve listened to our customers and spent three years developing the latest and best innovation in Fresh Coffee,” says Timmins. February 2011, saw the launch of NEW Robert Harris Plunger Bags. With all the delicious aroma and taste of plunger coffee in a format that’s easy to use, clean and convenient, they make enjoying fresh coffee so easy without the clean up at the end. The range includes four 140g 10pk variants and two single serve sachet variants. “The single serve sachets are important in driving trial at a lower price point, with less risk for the consumer,” explains Timmins. Made using 100% Arabica roast ground coffee, these products have been specifically roasted and blended for optimum delivery of flavour. The custom designed circular bag has been developed for perfect plunger fit, and the perforations allow the coffee to brew and release a superior taste. No longer will consumers wonder how much coffee to use or how to make good plunger coffee. Robert Harris Plunger Bags will give them

Total Coffee: $186.745m Val % Chg YA 2.2 Total Instant Coffee: $108.517m Val % Chg YA -1.3 Total Roasted & Ground Coffee: $40.584m Val % Chg YA 3.1 Total Flavoured Coffee: $33.694m Val % Chg YA 14.8 Total Coffee Additives: $2.070m Val % Chg YA 9.1 Total RTD Coffee: $332,744 Val % Chg YA -34.1 Total Coffee Substitutes: $653,058 Val % Chg YA -6.1 Total Drink Whiteners: $557,151 Val % Chg YA -4.8 Total Coffee Filters: $117,987 Val % Chg YA 7.0 Total Coffee Essences: $219,401 Val % Chg YA 0.5 Total Tea: $75.470m Val % Chg YA 0.8 Total Tea (Black Tea only): $51.800m Val % Chg YA -2.0 Total Herbal Tea: $12.051m Val % Chg YA 0.5 Total Green Tea: $6.907m Val % Chg YA -1.9 Total RTD Tea: $4.713m Val % Chg YA 60.8 * ACNielsen New Zealand ScanTrack (Databank)

perfect coffee every time, with consistent results. “Simply add hot water, plunge at least five times, brew, throw away the plunger bag and rinse the plunger. It really is real coffee, without the fuss,” says Timmins. “We have had fantastic support from the trade and although it’s just april 2011 FMCG

cate go r y c h e c k week alone generated huge scan sales of 19,994 units of the Robert Harris plunger bags 140g 10pks*!” She comments: “With low levels of innovation, falling price per cup due to heavier price discounting, and flat category penetration, we saw a real opportunity as market leaders to reinvigorate the category. We believe that our new Robert Harris Plunger Bags lead the category with true innovation, driving increased consumption of fresh coffee and category penetration.” * Aztec MAT to 27 February 2011

The power of Milo

early days for this launch, in less than three weeks we had sold our threemonth forecast. With a massive $2m spend supporting this launch including TV, print and sampling, we expect huge success for this innovative product launch,” she adds. In week three (Aztec week to February 27), a value-added promotion offered a free custom-designed Robert Harris plunger with any purchase of one of the new 140g packs of plunger bags. Timmins says: “This 34

FMCG april 2011

Matthew Angus, category manager – beverages, Nestlé New Zealand, told FMCG: “Nestlé New Zealand is the leading manufacturer in both the Coffee and Dairy Beverages segments of Hot Beverages within the supermarket channel*. The Total Coffee category (Soluble and Roast & Ground) is a key category for supermarkets – worth $186m* the category is growing in value at 2.3%*. Nestlé, worth $70m* and growing at 5%*, has been a key driver of this growth.” He adds: “Nestlé remains both the number-one manufacturer and owner of the number-one brand with Nescafé. Within the $39.4m* Dairy Beverages category, Nestlé is the number-one manufacturer and owner of New Zealand’s iconic Milo brand as well as the Nesquik brand. The power of the Milo brand with shoppers is clear with total Milo value sales of over $25m* and a value share of 62.7%* of the Total Dairy Beverages category. “The Nescafé Classic 100g Coffee and the Milo 310g skus are both key supermarket skus and remain important foot traffic drivers for supermarkets,” says Angus. He adds: “The last year has seen another phenomenal year for Nescafé within the Café-inspired (Flavoured Coffee) segment of coffee. The brand has set another year of records, adding

$3.9m* in value and driving the segment to be now worth $33.7m*. The year 2010 saw Nescafé Cafe Menu 20-pack range continue to be the key driver of these figures. Growing at 137%*, it is now worth $6.7m* in the last year.” Angus says:“In three years the Caféinspired segment has more than doubled in size, with Nescafé delivering over 70% of this. Most importantly for supermarket retailers is the vast majority of this growth from Café-inspired coffee is incremental to the total category. Growth has either come via bringing new users into coffee, shoppers bringing their dollars spent on out-of-home coffees at chain outlets back to the supermarket channel, or consumer trade up from cheaper offerings,” he adds. Angus says: “Following on from a successful last year where Nescafé Gold grew in volume at 3.1%*, February saw the relaunch of the brand. Continuing to be the only Premium Instant brand to use 100% Arabica beans, an improved aroma and a new and improved jar with stronger premium cues will help to ensure Nescafé Gold continues to be popular among the growing number of Premium Instant consumers.” *The Nielsen Company, Total Supermarkets, MAT to 27 February 2011

‘Meer mmmmm . . .’ Sara Lee proudly manufactures the iconic Moccona Brand. Moccona is the number-two brand in the coffee category, holding 14% share of the over $180 million total coffee market, says Sara Lee New Zealand category manager Tim BoydWhite. “Sara Lee are the clear leader in Premium Instant, with three out of every $5 being spent on one of their coffees (Aztec Data MAT to 06/02/11),” he adds. Boyd-White says the recent launch of the Moccona Inspirations Range, made up of Espresso Style and French Style, has been a great success with

Real Coffee.

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cate go r y c h e c k

over $1.1 million in sales over the last six months. “It is now well established with a 5.6% share of the Instant Premium category (Aztec Data 6 Mths to 06/02/11),” he explains. This month the brand has built on the success of the Moccona Inspirations range by launching a French Style Refill. This mild blend rounds off the refill offering and complements the medium Moccona Classic Refill and darker Moccona Indulgence Refill. Moccona Rich has also just been launched. “It joins Moccona Indulgence to become the only two super premium coffees in the instant category,” says Boyd-White. Made from 100% Arabica beans, they will now be known by the sub brand ‘Speciality Blend’. “With their premium price point there is no doubt this range will drive extra value for the category,” he adds. Over the next few months, consumers will notice updated packaging across the whole Moccona range, with cleaner clearer labels and easier to open jars. To support the NPD and packaging updates, Moccona is making a big splash with a lavish consumer European travel promotion communicated through TVCs, in-store media and on www.moccona.co.nz.

Kokako Kokako supplies Fairtrade Organic Drinking Chocolate and three blends of coffee – Aotea, Rangatira and Decaf. Some of this offering is now available in selected New World stores. “Our existing food and beverage range is supplied to specialty food retailers across New Zealand and we are starting our supermarket rollout with the coffee and hot chocolate products initially,” explains Kokako managing director Mike Murphy. “We will also look to launch our Fairtrade Banana Bread and selected preservative free sweet slices into the supermarkets in the coming months.” 36

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Murphy explains his view of current trends: “Consumers want to connect with the brand, they want transparency, a good strong story and claims that can be backed up (we are third-party certified by Biogro and Fairtrade which consumers recognise), they also want to do the right thing and buy a fresh product that has sustainable packaging. Our coffee is packed fresh and dispatched to our retailers the same day.”

CafE-style coffee Karajoz coffee is available in “Genuine No. 1 blend” in beans, espresso and plunger variants. For the take-home market – a smooth blend capturing all the experience of the Karajoz coffee roaster, is now available from leading supermarkets. “We also have ‘Karajoz Fair Trade Organic’ available in beans, espresso and plunger format,” explains Karajoz general manager David Shortall. With a tightening in consumer discretionary spend, customers are more inclined to look at purchasing their own roast and ground coffee, to have a better taste enjoyment than instant coffee, and to save money by not going to cafes. Shortall comments:“There has been a movement in sales to the new flavoured coffee format – quicker and more convenient – however with this comes other factors – more ingredients to make the taste acceptable. New Zealand has a very good awareness of quality coffees and the market is well developed here, more so than in some other countries.” Worldwide and particularly in the US, Europe, and the UK the consumer demand for Fair Trade products is gaining momentum. New Zealand consumers are also embracing the fair trade concept, with increased consumption of Fair Trade certified coffee. “In supermarkets, competition in coffee is intense. Like most categories, consumers watch the price points – Karajoz’ byline ‘excellent quality at a

hot beverages

fair price – no compromise’ – stands true,” says Shortall.

Healthy herbal teas Healtheries has a wide range of teas including fruit, green, herbal, functional, rooibos and chai, with a focus on flavour innovation. Healtheries has recently launched two new Fruit teas – Central Otago Apricot with Passionfruit and Braeburn Apple & Rhubarb tea – and three new Green teas with Strawberry, Feijoa, and Jasmine & Elderflower. Vitaco Health’s senior product manager James Ford told FMCG: “Healtheries Teas have held the number one 4-weekly dollar share position for nine of the last 12 months in the highly competitive Total Herbal & Green tea category, which is worth $21m (AZTEC TKA 13/2/11, MAT+0.9% and QTR+2.5% vs YA). There are positives signs that the market is lifting as a whole, with every segment’s 4-weekly and Quarterly growth ahead of its MAT growth.” He adds:“Healtheries growth versus year ago is driving the category, with Healtheries growth in key segments – Green +2.7%, Fruit +2.6% and Herbal +3.5% (AZTEC) – all performing well ahead of competitors who are largely in negative growth. Healtheries Teas have gained fantastic momentum through a combination of strong TV support, successful new product launches and a strong promotional programme, including tea sampling at targeted hair salons.” Healtheries Teas are sponsoring the new season of hit drama Brothers & Sisters on TV until July 2011 and will also have a new TVC ad for fruit tea.

Premium teas Dilmah Tea has recently launched the ‘Exceptional Range’ of loose leaf grade tea packed into large luxury tea bags that enable this grade of tea to brew

correctly… as if it was in a mini teapot. “Given the premium pricing on this range a number of them have performed up to expectation – especially the ‘flavoured’ teas: Rose with French Vanilla & Berry Sensation,” says Dilmah NZ national manager Nigel Scott. He adds: “We have re-packaged our Green Tea range and have added a new sku of Green Tea with Lemongrass & Lemon.We are also introducing two new skus to the Exceptional Range being Acai Berry Pomegranate with Vanilla and a second sku of Italian Almond. “The mainstream regular tea category is a large segment which is quite mature,” says Scott. “We are seeing a slight move towards more premium offerings. The Green Tea segment has slowed following its creation some seven years ago although consumers are still viewing this segment as a ‘healthy’ alternative. The Infusions segment that covers both Herbals & Fruits is showing growth. Consumers in this segment tend to have four or five different flavours in their pantry and consume these depending on the time or occasion,” he says.

Red Seal The Red Seal range of teas includes Green Tea, Earl Grey Green, Jasmine & Green, Lemon & Ginger Green, Orange Jasmine Green, Red Bush, Red Bush Spice, Red Bush Lemon & Ginger, Black Adder Liquorice, Black Adder Chai, Peppermint, Chamomile, Raspberry Leaf, Relaxing, Sweet Dreams, Alpine and Mi-Chai. “Our R&D department is continually working on new products,” says Red Seal national sales & marketing manager Sue Millinchip. She explains: “This is a category where consumers will try new products, leading to an increase in the number of products in home at any time. However, the core repertoire will often remain.This is why variants such as Red Bush and Black Adder perform

strongly year after year – consumers will not give them up. “Overall the herbal/fruit/green teas category is fairly static, however Red Seal has grown share in Green Tea and Herbal Teas,” says Millinchip. “Within the Red Seal range there are some quite unique variants that continue to perform strongly. Red Bush has a huge following and the launch of additional variants (Lemon & Ginger, Spice) plus a 50s pack have all driven incremental sales. “Black Adder similarly has carved out a unique place in the category and those variants with a specific medicinal quality, such as Alpine Tea, have achieved significant growth,” she says.

Hot chocolate “Cadbury Drinking Chocolate has been a staple in Kiwi cupboards for over 20 years and is currently the leader in the drinking chocolate segment with a 58.3% share*,” says Cadbury sales analyst Kate Nixon. She adds: “Cadbury is currently outperforming the drinking chocolate segment performance growing by 3.8% (the segment is in decline by -3.8%**). Two new additions to the iconic Cadbury Drinking Chocolate range are the Mint and Caramel flavoured offers which were launched in 2010.” Nixon explains: “Mint and Caramel drinking chocolate were developed to give consumers more variety and as a response to the highly competitive flavoured coffee offers that were entering the market. Cadbury Mint and Caramel NPD has generated over $600,000 in value sales in the drinking chocolate segment with the caramel sku now ranked number three in the segment,” she says. Seasonality plays a pivotal role in drinking chocolate sales with the first spike in sales appearing in May before peak sales in July and August. * Nielsen Total Supermarkets MAT to 27 Feb 2011. ** Nielsen Total Supermarkets MAT to 27 Feb 2011.

april 2011 FMCG

cate go r y c h e c k

The most important meal of the day As consumers continue to be wary of cost, cereal offers convenience and good value for money compared with cafes and fast food breakfast options. FMCG looks at new trends in the Breakfast Cereals category.

n the past 12 months Kellogg’s has launched Coco Pop O’s, Kellogg’s Sultana Bran Buds, Kellogg’s All Bran Apple Crunch and Kellogg’s Mini Wheats Mixed Berry. “Kellogg’s Coco Pop O’s were a fresh innovation for the Coco Pops brand, combining an innovative new loop shape with the goodness of 47% wholegrain content and the delicious chocolatey taste that kids have enjoyed from Coco Pops for generations – this is contributing to strong brand growth for Coco Pops of 17.4% (+$1m latest MAT),” explains Kellogg NZ category manager Viv Wilson. She adds: “Sultana Bran Buds were launched in August 2010, increasing the appeal and reach of Sultana Bran with an innovative crispy high fibre cereal pillow, encasing a tasty sultana layer. After six months in the

FMCG april 2011

market, Sultana Bran Buds has driven

incremental sales of $1m (+33%) to the Sultana Bran brand franchise (latest six months)*. Recently Kellogg’s relaunched its Mini Wheat range including a new Mixed Berry variant. “It has only been four weeks since product hit the shelves, but early signs are showing a positive trend with sales from the new variant incremental to the brand with total Mini Wheat sales already up 73.6% (latest 4 weeks)*,” says Wilson. Kellogg’s has also just launched All Bran Apple Crunch, a crunchy blend of wheat and rice flakes mixed with clusters, bran cereal and apple pieces as a tasty entry point for consumers seeking the digestive health benefits from a very high fibre cereal. “Whilst distribution is still building, the last four weeks have seen sales increase 15.8%*

breakfast cereals THE BREAKDOWN Current MAT to 27 February 2011

for the All Bran brand,” comments

Wilson. She adds: “The Ready-to-eat Cereal segment is challenged by flat consumption (+0.4% MAT) despite an increased reliance on promotions resulting in declining sales of -0.7% (-$1.4m MAT)*. The biscuit segment (Wheat Biscuits) is the biggest driver of this decline with $ sales down 7.1% (-$3.29m MAT)*.” Consumers are incredibly habitual with regards to shopping within the cereal aisle and are three times more likely to shop within a small repertoire of familiar products than they would across the rest of the supermarket. “Strong continued brand media support, coupled with innovative consumer promotional offers and fantastic retailer support have been key factors in driving a healthy 16.5% volume growth for Kellogg’s Nutri Grain over the past 12 months,” says Wilson. *Aztec data to 27/2/11

New hot breakfast cereals Nestlé supplies Uncle Tobys Oats, Milo Cereal, PLUS, Cheerios and Nesquik Cereal. “In August 2010 we launched Cheerios Honey & Oats. This was a very successful launch delivering scan sales of over $400,000 in less than six months from launch (Nielsen data to

30/1/11),” says CPW country business manager Mark Fisher. March 2011 has seen the launch of Milo Oats, Gourmet Selections Oats, Weightwise Oats and Smooth & Tasty Oats. “All of these launches tap into the growing trend of convenience,” explains Fisher.“Milo is a massive retail brand so the extension into a Hot Oats product is a natural fit. Gourmet Selections will bring real taste and food cues into the Oats segment. Weightwise is the first specific weight management within the Oats segment and it has the powerful endorsement of Weight Watchers. Smooth and Tasty provides kids with the oats flavours they love, without the lumps.” There has been a strong movement within the category towards more convenient options. “This can be seen by the 22.2% value growth in Sachet Oats (making it the fastest growing segment in the Breakfast category) and the 12.2% value growth in Liquid Breakfast Drinks,” says Fisher. “There has also been an overall movement towards Hot Oats with an overall value growth of 7.6% vs RTE growth of -0.1% (Nielsen data MAT to 20/1/11).This follows global trends and is in part driven by news surrounding oats and its benefits in reducing cholesterol re-absorption,” explains Fisher.

Total Breakfast Cereals: $244.707m Val % Chg YA 1.4 Total Family: $87.953m Val % Chg YA -1.9 Total Adult: $51.781m Val % Chg YA 2.3 Total Muesli: $33.721m Val % Chg YA 1.3 Total Kids: $24.631m Val % Chg YA -1.7 Total Hot – Standard: $19.260m Val % Chg YA 11.6 Total Convenience: $19.654m Val % Chg YA 11.2 Total Hot – Sachet: $7.706m Val % Chg YA 27.3 * ACNielsen New Zealand ScanTrack (Databank)

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cate go r y c h e c k Popular variety packs “The hot breakfast cereal market continues to show excellent category growth with scanned Aztec data as at 6/03/2011 showing a MAT of 9.4% by value and 10.3% by units*,” says Harraways sales manager Rodney Johnson. He explains: “In total, the category value is nearly $27 million. This market segment can be categorised into two distinct sub areas – traditional oat products representing 72% of retail sales and the newer sachet products 28%.” Johnson adds: “Over approximately the past 20 months Harraways has experienced an unprecedented 30% plus growth in traditional brands such as Rolled Oats 1.5kg, 800g and Scotch Oats (a creamier style porridge) and more recently the Traditional Whole Grain product, which is used in baking and home muesli making. The increase in growth is due to a stronger company focus on market analysis and promotional activity, being aware of the dynamic market conditions and evolving consumer needs. “We now have an increased focus on developing our Harraways brand equity through a comprehensive marketing campaign and increased support of key sponsorship initiatives,” adds Johnson. “By comparison, the total sachet market is growing at 27% MAT* and is constantly evolving with brand

FMCG april 2011

flavours moving in and out of the category as suppliers endeavour to encapsulate the consumers’ interest through these new flavours and variety pack selections,” he says. “Harraways have continued to meet the expectations of consumers with the addition of a variety pack to go alongside our popular Honey & Golden Syrup, Apple Sultana & Cinnamon, Morning Berry and Plain flavours. Harraways is very much in the heart of New Zealand consumers for nutritional breakfast needs compared to five years ago and has been assisted by the revitalisation of the Harraways brand in recent years,” says Johnson. *Aztec data as at 6/03/2011.

New launch with stevia “Vogel’s Café Style Clusters with Cranberries & Spirulina and Vogel’s Cocoa Hazelnut Crisp are recent launches in this category and both products have performed very well,” says Smartfoods general manager Vicky Taylor. She explains: “This is supporting Vogel’s ongoing performance as the fastest growing brand in the muesli segment (+32% MAT to 27 Feb 2011, Aztec). Within the total Vogel’s range the Café Style range is growing the fastest, as more consumers enjoy Café Style Light – the best selling no wheat/ no gluten cereal in New Zealand.This has taken Vogel’s market share from

breakfast cereals

11.9% MAT in Feb 2010 to 15.5% MAT Feb 2011 (Aztec) – a very solid improvement in this market segment. “We have a stunning new addition to the Café Style range coming out in April –Vogel’s Café Style Luxury Nuts & Seeds, a light and crunchy, mueslistyle cereal with a luxurious nut blend including almonds, cashews and macadamias, toasted with crisp grains and the natural sweetness of stevia,” reveals Taylor. “Smartfoods is the first New Zealand company to launch a breakfast cereal with stevia, one of the new generation of natural sweeteners that deliver great flavour with lower calories than sugars,” she explains. “Like all our Café Style products, it is designed to have a specific health benefit with no compromise on taste or texture. It has less then 7% total sugar and is low in fructose and glucose,” says Taylor. She adds: “Consumers are attracted to new products, and they do tend to come back to great quality and great flavours. The success of the Café

Style range shows us that consumers will pay a premium for products that offer specific benefits as well as being absolutely delicious.”

Iconic brands “Sanitarium markets more than 10 cereal brands in New Zealand, including many top 10 Kiwi favourites,” says category & insights manager Mark Roper. “These include the iconic WeetBix brand (with several sub brands including Bites, Multigrain and HiBran); Up&Go; Light’n’Tasty; Skippy Cornflakes; Ricies; Sanitarium Muesli; Cluster Crisp; Honey Puffs and Double Crunch.” During the past 12 months, Sanitarium has launched 12 new products – four of these have been in Liquid Breakfast (2x Up&Go 1L and 2x Up&Go Energize 250ml), three in Adult Muesli (Cluster Crisp Coconut; SHF Muesli Super Fruity; SHF Muesli Nut & Seed) and one in Adult Flakes (Light’n’Tasty Peach & Raspberry). “We’ve also upgraded Light’n’Tasty

Apricot and Up&Go Vive with great new formulations, and introduced new packaging across our entire range carrying new Sanitarium branding and details of our history of some of the things Sanitarium does in the community behind the scenes,” explains Roper. “Light’n’Tasty Peach & Raspberry has been a real summer success story climbing into the top 10 selling variants in the competitive Adult Flake segment,” says Roper.“The Sanitarium Muesli brand continues to perform strongly, with the new flavours popular – particularly the innovative fruit free Nut & Seed variant. It is early days for the large 1L Up&Go format, but we have high hopes this will do well amongst the many households that now consume large quantities of Up&Go,” he adds. “We have just launched Up&Go Banana 6x250ml, which builds on the great success of existing six packs. The three existing six-pack Up&Go flavours make up three of the four highest selling liquid breakfast sellers

Oat Singles 100% organic oats creamy fast-cook porridge

PLAIN NATURAL

400g

april 2011 FMCG

cate go r y c h e c k

(three-pack Up&Go Choc Ice being the 4th). In the next couple of months we will launch a new limited edition Light’n’Tasty Macadamia & Honey variant, and a large value pack of popular Cluster Crisp Vanilla & Almond,” reveals Roper. He adds: “New Zealand shoppers continue to buy national brands due to strong promotional activity, with over half of total grocery value sales sold on promotion during the second half of 2010 (51.5% Total Grocery Sales on promotion, QTR to 10/10/10)*. National cereal brands have grown faster in value and volume than Private Label (+2.4% vs. -5.2% in value MAT 42

FMCG april 2011

to 27/02/11)*. Private Label now only controls 11.9% of the New Zealand cereal market.” Consumers are coming back to supermarkets to buy their breakfast and cereal offers great value for money, often below $1 per serve. Roper says: “Added value continues to be sought after – whether convenience (Up&Go has started 2011 tremendously well with sales in the quarter to Feb 11 up 25% on year ago)*, health benefits and/or taste (premium brands such as Light’n’Tasty, Sanitarium Muesli and Cluster Crisp continue to grow faster than the market), or meaningful promotional offers such as Weet-Bix collectable All Black cards. “We have now finalised major plans for our annual All Blacks sponsorship focus across our two largest brands – Weet-Bix and Up&Go. We will be talking to individual stores shortly on the opportunities available to tap into the excitement and leverage the unique opportunities 2011 offers, driving sales over the months ahead. “Sanitarium has also been working closely with Nielsen and Foodstuffs South Island to test a new Breakfast schematic. This research has identified three key cereal destinations, which if spread across the aisle, can encourage shopper interaction and lift overall category sales. Foodstuffs South Island has experienced encouraging outcomes within test stores,” says Roper. *Nielsen data to 27 Feb 2011.

Trusted gluten free brands Crombie & Price, supplier of Orgran and Monster Muesli cereals, has recently launched Orgran – Multigrain O’s with Quinoa; Orgran – Itsy Bitsy Cocoa O’s; and Orgran – Rice O’s with Berry Flavour,” says marketing manager Catherine McArdle. “We specialise in ‘free from – gluten, wheat, egg & dairy’, so these particular products have been received extremely well by buyers and consumers.

Consumers for this category are always searching for tasty, easy but more importantly trusted brands within this category.They need to trust the brand to make sure there is nothing hidden within the ingredients – Orgran is the pioneer producer and trusted name in gluten free foods,” says McArdle.

It’s Simple Healtheries has a range of cereals within the Bircher and Wheat & Gluten Free segments. “Healtheries ‘Simple’ cereal is the number one brand with over $2m sales within the $6m Wheat and Gluten Free segment (Aztec TKA MAT 13/2/11),” says Vitaco senior product manager James Ford. Endorsed by the Coeliac Society of New Zealand, all ‘Simple’ cereals, as well as being wheat and gluten free, contain no artificial colours, flavours or preservatives. This cereal range appeals not just to coeliacs, but also those wanting to eliminate wheat or gluten for overall health and wellbeing reasons. There are now five products within the range, with Honey Flakes being the most recent addition in 2010, joining the popular Tropical Light and Berry Light cereals. There is also an Apricot & Coconut Hi-Fibre Muesli and an Apricot & Raisin Wholegrain Hot Cereal, which is a rice-based alternative to oat porridge. “Healtheries Bircher is the only Bircher in supermarkets true to the style, heritage and formulation of Swiss nutritionist Dr Bircher-Benner’s original recipe,” says Ford. It is designed to be soaked overnight to activate the enzymes in the nuts, seeds and whole grains. Healtheries Bircher mueslis are delicious, easily digested and super nutritious cereals, which have a mix of oats, buckwheat, raisins, dried apple chunks, sunflower seeds and linseed. There are three Healtheries Birchers on the market, the traditional Apple & Raisin and Apple & Berry variants, and the more indulgent café style formulation Bircher Deluxe Apple, Cinnamon and Almonds.

What’s Hot SPARKLING NEW CRUISER BUBBLES RANGE Superb west coast salamis & smallgoods The legendary Blackball Salami Company is famed for producing some of New Zealand’s finest old-fashioned salamis and top quality cured meats – now available nationwide. Using only the best lean NZ meats, the boutique West Coast butchery handcrafts a superb array of MSG and Gluten free venison, Italian and original pepperoni salamis. An extensive range of delicious smallgoods including chorizos, cabanas, black and white puddings, biersticks, Manuka smoked bacons and a selection of gorgeous gourmet sausages and patties are also available. Purchase online or from leading supermarkets and speciality food stores.

Brand new from Cruiser, the Cruiser Bubbles Sparkling Sav range is sure to add sparkle to any celebration. The new range fuses Marlborough Sauvignon Blanc with natural flavours and bubbles, and is the perfect drink to take along to any party. Cruiser Bubbles Sparkling Sav is available in three fun and refreshing natural flavours – Sparkling Sav, Sparkling Sav with Strawberry, and Sparkling Sav with Lemon and Lime. The range comes in a 750ml bottle plus two convenient pack options (four pack 275ml bottles and four pack 250ml cans). The new Cruiser Bubbles Sparkling Sav range is 9% alc/vol, and can be ordered from Independent Liquor on 0800 420 001.

www.blackballsalami.co.nz Ph (03) 732 4111

Wasabi has now become a popular flavour not only for Japanese food but a range of different products from salad dressings to snacks. Under the rapidly expanding Obento brand, there is now available a gluten free wasabi paste in a 43g tube with its own display tray, and for foodservice, a 1kg powder in a lock seal bag. For more information on Obento Products 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

What’s Hot

Obento Wasabi

Meadow Mushrooms have captured the best of mushrooms by offering a full range of canned products under the brand of EMMA. EMMA is the only canned mushroom product produced in New Zealand. EMMA can provide a quick & tasty meal in minutes. Ideal for a quiche filling, oven baked potatoes or kumara, sauce for steak, base for a soup, added flavour for pasta, paninis and hearty winter casseroles. Zane Hutching - Upper North Island - mob: 0274 859 826 Tracy Scott - Central Region - mob: 0274 972 823 Mark Santy - South Island - mob: 0272 202 452 Yvonne Clyne - National Sales Manager - mob: 027 216 0900 www.meadowmushrooms.co.nz april 2011 FMCG

What’s Hot Into intensity

Harraways Oat Singles Variety Hot flavoured oats in less than 90 seconds! Harraways Oat Singles Variety pack can meet the individual needs of a family. Packs include 10 sachets of popular hot breakfast flavours, which are quick and easy to prepare with no mess and no waste. The goodness of natural wholegrain oats will keep you going.

The Oat singles market 28% growth MAT – Aztec to 6/3/11

Enquiries to Rodney Johnston, Sales Manager, Harraways, ph 03 488 3073.

Tic Tac Intensity is the new ‘Intense’ flavoured mint from the iconic brand Tic Tac. Tic Tac Intensity is just that – a strong, powerful mint that both freshens breath and delivers a pleasing mint flavour. With its distinctive blue coloured pills Tic Tac Intensity stands out on shelf, drawing consumers attention. Tic Tac knows that consumers are constantly seeking new flavours and innovation in the Mints category, Tic Tac is a highly trusted brand since 1976.

For further information call 0800 222 196.

Great tasting bacon gets great new packaging

What’s Hot

Our new look 100% New Zealand Free Farmed bacon range, Streaky, Ribeye Rashers and top-selling favourites Middle Eye and Middle Rashers, will soon be in the chillers. The all-new packaging not only incorporates the new Hellers look but also focuses on the origin of the products, emphasizing the fact that the bacon used is sourced from selected New Zealand farms where the sows are outdoors, and once weaned, their piglets are raised in barns with no crates or stalls and are free to move around. No hormones are used and regular independent animal welfare audits are carried out. The new premium packaging also features Hellers’ unique new ‘rigid packs’ with an easy-peel top and layered bacon for much better display.

FMCG april 2011

For more information contact Kevin Calder, National Sales Manager, on 03 375 5031 or email kevin_calder@heller.co.nz

What’s Hot Introducing the legendary Tulsi Herbal Tea in NZ

Introducing NATURO FRUIT BARS & NATURO FRUIT STICKS

Tulsi (the Holy Basil plant) is known as the queen of herbs. Contains Tulsi leaves and flowers. Scientific research shows that Tulsi supports the body during stress and is a strong natural adaptogen. • Tastes simply exquisite  • Smells wonderful  • Supports the immune defences and response  • Rich in antioxidants • Helps settle digestion  • Supports the liver  • Supports normal blood sugar  • Promotes healthy metabolism  • Supports weight management  • Sales of Tulsi Tea worldwide are soaring.  Recommended by Dr Joseph Mercola in his website, www.mercola.com, the world’s most accessed website for health and nutrition.  Available in seven delicious flavours. Vigorous advertising and sales promotion planned.

• Most delicious & loved by both kids & adults  • Perfect for lunch boxes • Made from 100% fruit juice, pulp & concentrates  • No artificial colours or flavours  • No added sugar or sweeteners  • No added preservatives • Free from gluten and sulphur. 97% of New Zealanders, sampled in three cities, said Naturo tasted “excellent” or “good”. Sticks are available in Raspberry, Blackcurrant and Pineapple flavours. Bars are available in Strawberry and BlueberryPomegranate flavours. Selling very well worldwide. Competitively priced. Vigorous advertising and sales promotion planned.

Please call us for samples Wholesalers/Distributors: Good Health Food Ltd Tel: 0800 505 333 or 09 5763687 Fax: 09 5760255 Email: info@goodhealthfood.co.nz www.goodhealthfood.co.nz

Ingham’s Red Bag range is still as popular as ever

What’s Hot

Ingham’s successful Red Bag range continues to be popular with consumers demanding quality, convenience and value. Ingham New Zealand Retail Sales Manager, Jerem Wylie, says the Red Bag range defies the decline in the convenience category over the past two years. “The Ingham Red Bag Range has gone from strength to strength during the past few years, which is great as it has been a challenging environment,” he says. “There remains solid demand for affordable quality and convenience in the current environment.” The Ingham Red Bag range includes Tempura Nuggets, Flame Grilled Burgers, Spicy Mini Drums and Chicken Chipees. Made from 100 per cent New Zealand chicken, the Red Bag range is ideal for busy families as a quick snack, or as a main meal, teamed with vegetables or salad.

For more information, contact your local Ingham distributor on 0508 800 785.

april 2011 FMCG

Benign

by design

P ctor Charlotte Rebbeck.

Green Monkey managing dire

FMCG april 2011

arents are increasingly interested in products for their children that are not only healthy and nutritious, but also convenient and preferably organic. While many companies seem to focus on “green” re-branding and advertising strategies, some have actually invested in making better products, examining their entire supply chains to improve their offering. Green Monkey, for example, produces 100% pure organic baby food, with its processes audited by AsureQuality under the ‘AsureQuality Organic Standard’. Managing director Charlotte Rebbeck told FMCG how her company identified opportunities for a new product range. The idea for the brand came about in 2002, when Rebbeck was disappointed with the existing variety of ready-made baby foods on the market. As a parent she only wanted the very best for her baby, but the existing selection was very limited. “It all began with a philosophy to bring to life the most natural and convenient baby food on earth,” says Rebbeck. “New babies are so pure, I wanted food that was grown and produced naturally in New Zealand’s pristine environment, just like our parents made for us. It seemed so simple – gather the best natural goodness, make it convenient and offer something to parents that they can

always trust,” explains Rebbeck. “We decided there was room for a super premium baby food and so Green Monkey Organic Baby Food was born naturally in New Zealand. It has been created by mothers and our motivation was to set your children up for a life time of good eating habits. Most importantly, it had to taste great and be nutritious. “We have the most passionate organic farmers right here in New Zealand nurturing our crops, they are committed to providing the most delicious fruit and vegetables for our baby food. The farming of such high quality organic food is what comes naturally to them. Like us, our local farmers always strive for the best. We have traceability of our produce from “paddock to pouch”. All our farmers comply with a strict regime of annual audits by AsureQuality, to ensure they meet New Zealand’s certified organic standards.” “Green Monkey is a unique business model. Our farmers are all independent and Green Monkey is the marketing arm of a cooperative of organic farms throughout New Zealand,” says Rebbeck.

Sustainable policies The company has recently developed new packaging with an innovative ‘pouch system’ that helps to keep in freshness and taste. “Green Monkey had been on the market for over five years achieving strong success as a premium, 100% New Zealand, frozen organic baby

food brand. After mastering frozen food concepts we recognised the distinct lack of convenience that such frozen products posed.This obstacle to an otherwise brilliant product, inspired us to create the perfect solution with this award-winning innovation. “The Green Monkey pouch system goes well beyond any existing baby food available in the world in terms of premium product quality, unique features and consumer appeal. It delivers the ultimate convenience whilst still providing a pure and natural organic product that can be safely stored at room temperature. “Our packaging system enables us to store a fresh product without the need for additives, preservatives, freezing or refrigeration,” says Rebbeck. Green Monkey’s wholesome recipes are gently pressure cooked within the tailor-made multilayer pouch to seal in the fresh flavour. This sophisticated processing technology attains the highest standards

of quality in baby food manufacturing and safety, whilst still remaining faithful to the integrity of organic food principles. The pouch is presented in a simple, highly functional retail display device, constructed of recycled cardboard and printed with natural vegetable inks. These are easy to use, have strong visual impact on the retail shelf and are totally recyclable. “The consideration of the environment doesn’t simply end once our product has been packaged,” explains Rebbeck. “Our products are made in New Zealand, but are now feeding babies worldwide, so we must consider the environmental impact of transporting our products such large distances. That’s why we use the lightweight pouch system instead of glass jars. In line with our sustainable business policies we purchase carbon credits to offset emissions. By taking advantage of this service we are one of the first NZ food producers able to supply world markets in this sustainable manner,” says Rebbeck.

LEADING THE WAY IN ORGANIC CERTIFICATION WE OFFER: › Global market access › Integrated services e.g. GLOBALGAP & BRC › National coverage › Our own residue testing laboratory › Competitive pricing WE CERTIFY TO: › AsureQuality Organic Standard › IFOAM › NZFSA Official Organic Assurance Programme › USDA National Organic Program › Japanese Agricultural Standard

NZ1234

Accolades for Green Monkey Green Monkey has made considerable progress in just a short time – with sales to Australia, China, Dubai, Hong Kong, Singapore and South Africa, plus a number of awards to its credit: • New Zealand Food awards 2008 – winner of three gold awards • Winner of OANZ Organic Enterprise Award 2008 • Australian Food Challenge Awards 2009 – winner of two gold awards • The David Awards – Innovative Business Award October 2009 • New Zealand Food Awards 2010 – Export Award. ASUREQUALITY CUSTOMER SERVICES T. 09 573 8000 E. info@asurequality.com W. www.asurequality.com

g rocer y b us ine ss Keep one eye on new design for Cyclops An innovative lids company has produced eye-catching, bespoke lids for the Greek yoghurt inspired natural foods range, Cyclops. Leading lids manufacturer Chadwicks has translated an unusual blue-eye design into an appealing lid for Serra Natural Foods’ new Organic Premium Low Fat Cyclops yoghurt. The eye design incorporates the ‘blue pearl’ in the pupil – a highly significant symbol in spiritual practice and one the company says reflects its commitment to sustainability and organic produce. Chadwicks has provided 100.5mm aluminium foil lids that are printed four colour UV Flexo to bring the unique eye design to life. The Cyclops range is available in a wide variety of styles and flavours including the low-fat European option, which the lid will be used for. All Cyclops yoghurts are thick and silky smooth and available in three different sizes: 500g, 250g and 125g. John Savage, business development manager at Chadwicks Australia, said: “We have enjoyed a long-standing working relationship with Serra Natural Foods, having been its trusted lid supplier for more than 12 years.”

Part of the Clondalkin Group, Chadwicks works with its sister company Nyco, a shrink sleeve and lid manufacturer based in Switzerland, to provide a joint service to multisite international buyers, meaning Chadwicks together with Nyco can provide a wider range of print processes including UV flexo, gravure and offset litho. Clondalkin Group is an international producer of high valueadded packaging products and services with over 40 production locations in 10 different countries throughout Europe and North America and annual sales in excess of ¤800 million a year. l

Final preparations for Interpack 2011 under way The prospects for the world’s most important trade fair for the packaging sector and related processing industries are looking very good. Interpack 2011 is taking place from 12 to 18 May in Germany with about 2700 exhibitors from 60 countries expected to cover 174,000 square metres of net space at the Düsseldorf exhibition centre. Interpack 2011 is presenting packaging and process solutions for food and beverages, confectionery and bakery products, pharmaceuticals and cosmetics, non-food consumer goods, industrial goods and related services. Ten halls have been booked by companies supplying processes and machines for packaging. Individual exhibitors from all categories will be occupying space in the outdoor exhibition grounds. Visitors to Interpack 2011 can also look forward to an exhibition entitled ‘SAVE FOOD’ in the pavilion between

FMCG april 2011

Halls 10 and 16. The exhibition will show examples of best practice, based on results of studies conducted by the Food and Agriculture Organisation (FAO) of the United Nations on the subject of global food loss. Trade fair visitors can also take advantage of a sustainable catering strategy with a unique 150-metre long table under a tent construction, directly adjoining the ‘SAVE FOOD’ pavilion. Visit www.interpack.com for more information. l

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here are many steps involved in making sure advertising campaigns are well executed. From a legal perspective, one important consideration is to ensure that all forms of advertising comply with the Advertising Codes of Practice.The Advertising Standards Authority (ASA) is an independent, self-regulatory body comprised of members of the media and advertising industry. The ASA publishes a set of voluntary Codes of Practice to ensure that any form of advertising is truthful, socially responsible, not misleading or deceptive and otherwise

FMCG april 2011

complies with the law. These principles apply both generally and also in relation to specific targeted areas such as the Code for Advertising Food and the Code for Advertising Liquor where the media are seen to have particular influence. In terms of enforcement, the ASA runs a complaints service so that any member of the public can ask for advertisements to be reviewed by the Advertising Standards Complaints Board (ASCB) where they consider these to be in breach of the Codes. Most recently, the ASA released the new Childrenâ&#x20AC;&#x2122;s Code for Advertising

Food (the Code). The Code was implemented to provide clear guidance to advertising agencies, marketers and consumers on food and beverage advertising that may have strong appeal to children. It requires advertisers to take special care with this kind of advertising to protect the health and wellbeing of children. For example, the principles provide that advertisements should not promote inactive or unhealthy lifestyles,mislead about the nutritional value, sugar and fat content of foods or encourage children to consume

featu re

treat foods in excess consumption. Principle 1 of the Code states that “all advertisements should be prepared with and observe a standard of social responsibility”. However, the ASCB has not restricted its interpretation of what constitutes a “high standard of social responsibility” to the stated principles and will take into account generally prevailing community standards as well as previous decisions when interpreting the Code. There are several such decisions which illustrate how the ASCB may interpret the Code. For example, one decision in 2008 related to a snack

food ad for Bluebird chips. Bluebird Foods ran a “Rugby Superstars” promotion over a three-week period where consumers had to buy specially marked packs of Bluebird chips to collect up to 50 rugby superstar collector cards. The complaint was upheld as the majority considered that the use of the celebrity status of rugby players in a way that would undermine a healthy diet to be a breach of the requirement for a high standard of social responsibility. The ad was also considered to encourage excessive consumption due to the number of cards that made up the collector series despite the time period of the promotion. Some aspects of this decision seemed surprising at the time, although it was not appealed and so no further consideration was given. As part of being socially responsible, it is also recognised that the media should support parents and guardians in helping their children develop healthy eating habits. As such, a complaint was upheld in 2010 in relation to an ad for Tip Top Yoghurt ice cream.This showed a young child being offered a range of options to eat by the adult narrator such as asparagus, broccoli and whole grain toast but the child rejected these foods, only to accept the bowl of Tip Top Yoghurt ice cream. The majority said that this message, which countered healthier food options against a product which contained a level of fat and sugar, did not meet the high standard of social responsibility in the current social environment where child obesity was a significant health issue. In addition, children’s perception and understanding of the messages contained in advertisements should also be kept in mind. Principle 2 of the Code provides that advertisements should not contain exaggerated claims likely to mislead or deceive children, abuse their trust or exploit their lack of knowledge. In the Tip Top Yoghurt ice cream decision, it was also held that the advertisement

implied that food items such as asparagus, broccoli and whole grain toast had a taste that children would not like, which misled children and exploited their lack of knowledge. Overall,when designing advertising campaigns, especially those appealing to children, the following points should be kept in mind: • Advertisements should be in line with current attitudes towards food and incorporate a due sense of social responsibility; • Advertisements should not promote inactive or unhealthy lifestyles or inappropriate levels of consumption; • Care should be taken when using well-known people or making exaggerated statements/claims. Although there is no punitive penalty arising from a negative finding by the ASCB, if a complaint is upheld, the advertiser, advertising agency and media are required to voluntarily withdraw the advertisement in accordance with the self-regulatory principles. This can be very costly and the damage to the reputation of the brand or company may also be significant.As compliance is measured by both the principles and the spirit and intention of the Code, this means that decisions can be upheld even where there is no specific breach of the Code. Advertisers should always seek legal advice if they are unsure of their position.

Mark Gavin is a partner at Hudson Gavin Martin, which specialises in intellectual property and technology law. Email: mark.gavin@hgmlegal. com. Also contributing: Stephanie Melbourne, solicitor of Hudson Gavin Martin.

april 2011 FMCG

Looking Do we need carrots, sticks, or government intervention? In modern journalism, the quest for balance means there are always two sides to every story. Often, the side that is actually wrong gets a lot more coverage than the side which is actually right. The facts are not always enough to direct the story or shape public opinion. The more sensational version – the claims which might scare people – is often deemed more newsworthy than an objective look at the evidence and consideration of the context. We have seen this recently with the Government’s determination to stop grocery and convenience stores from selling alcohol, even though the vast majority are responsible sellers and their prices tend to be higher than other outlets. The real problem is bad behaviour anywhere, not the size or type of stores. We are seeing it again with the furious lobbying to ban supermarkets from selling alcohol. A Parliamentary select committee was told that supermarkets and grocery stores were driving binge drinking with aggressive pricing and using alcohol as a “loss leader”, selling it below cost to attract shoppers. This argument was made by the industry body representing licensed premises, an organisation which sees stores and supermarkets as direct rivals. These allegations are nothing new, nor have they ever been proved. The Law Commission report could not produce the evidence. Government officials could not produce the evidence. Instead, the Government resolved to gather information from the industry

FMCG February 2010

to see if the practice exists and, if it does, how significant it is. Until then, it seems premature to consider a blanket ban which would cripple a large number of well-run businesses. A similar perennial call is for stores selling “unhealthy” foods to be banned from being “too close” to schools. This argument ignores the important facts that stores were often there before the schools were, and that all the products being sold are completely legal. Instead, it looks to blame businesses for what are fundamentally personal and family decisions. The most common example used in the media is a schoolchild buying a cola and a pie. It certainly happens though it is not known exactly how common this occurrence is. Now, cola and pie every day would certainly be unhealthy. As an occasional treat, it may be alright, depending on diet and exercise. The central point however is that the schoolchild has made a decision to purchase these products using either their own or their parents’ money. Forcing the shop to move 500 metres further away won’t change customer behaviour. If nothing else apart from store location changes, then in all likelihood the same customers will simply buy the same products from slightly further away. They probably already walk past healthier options instore to get them. Meaningful change only happens when the attitudes of families and customers change. This involves education and the steady promotion of healthier foods, and it involves choice and responsibility.

at the

evidence

Stores only have a limited role here. Consumer behaviour can change without government intervention. One of the key examples of this phenomenon is the popularity of reusable shopping bags, which are replacing millions of plastic bags each year. For a number of years, there were calls to ban the plastic bags entirely here, as has been done elsewhere in the world with very mixed results. Instead, the Government was eventually convinced to look at a voluntary, industry-led approach. Stores know their customers best and have made their own decisions about what strategies would work. Some used the stick – charging for plastic bags; others used the carrot – selling cheap but cool bags. A growing number of the country’s hottest designers and fashion labels have become involved so people can make a statement while shopping. The number of people with reusable bags has increased rapidly and is a tremendous result for everyone, despite the naysayers who said such a fundamental change could never happen without a law change. NARGON exists to promote our members and to argue their case to Government and to the media. As the Grocery Retailers’ Association, we know we will not win every argument. However, we hope that in each case the important decisions are made on the evidence, not just the headlines. l By Trina Snow, executive director, NARGON.

april 2011 FMCG

Comfort food donations for Christchurch Cookie Time distributed cookies, bars and One Square Meals to Christchurch residents and rescue workers following the recent earthquake. The company’s Templeton factory, 20 kilometres south west of the Christchurch CBD, is open and keen to get its business back on its feet. All staff are safe, though a couple have lost their homes and many more homes sustained major damage during the earthquake. Childcare facilities have been set up on site so Cookie Time staff can have their children with them, and many staff are working flexi-time. The factory sustained minor structural damage in the earthquake and was closed for a few days for engineering work to strengthen the ceiling and walls. As part of the relief effort, the company donated and delivered more than 25,000 cookies, bars and One Square Meals to the Pioneer Stadium emergency shelter, Civil Defence headquarters and the Airforce. Cookie Time general manager Lincoln Booth says the company is glad to be able to help and relieved to have its team of 90 back at work. “We’ve been through a really tough time and I am just grateful that everyone is safe. The damage to homes is an enormous blow, but we’re all rallying together. And we’ve got the company up and running which is really important. This is our people’s livelihoods, and having some sense of security and normality in being able to

come to work is just so essential at this time.” Many Christchurch businesses face tough times in the months ahead. Booth comments: “We are very lucky. We supply Cookie Time factory in Christchurch 7000 outlets with general manager, Lincoln Booth. nationwide and we know we are going to be able to get stock back into all those very quickly. Other businesses are not so lucky, and will be affected for months to come. The best thing people can do is support Christchurch companies where they can,” he says. Booth says local Cookie Time suppliers have mostly come through the earthquake unscathed, enabling the company to focus on getting production up to speed. Buffer stocks had been depleted but these would be replenished over time. The immediate priority was getting full stocks to the 42 franchised distributors nationwide. l

The rise and rise of fuel prices Many of your customers may express a gripe about the rising costs of fuel at the pump, or may ask you what affects fuel prices in New Zealand. Do you know the facts? Fuel suppliers are constantly reviewing prices to bring customers the best possible fuel prices and to pass on the benefits of any price decreases at their service stations. However, like any business, fuel pricing must also reflect cost increases. What is paid for fuel at the pump is affected by many different factors, including product costs, currency exchange rates, government taxes, and competition. So what costs are currently included in the fuel price*? In March 2011, the pump price of petrol comprised the following: • Government excise and taxes – 38% of the price.

FMCG april 2011

• Product costs – 54% of the price. • Gross distribution margin – 8% of the price. Government excise and taxes include payment to the National Land Transport Fund to maintain existing and build new roading infrastructure, Accident Compensation levies, the Fuels Monitoring Levy, Local Authority petroleum tax and GST. The product cost is the cost of buying the fuel products (petrol or diesel) from the refinery. This includes freight, shipping, wharfage, and insurance. The gross distribution margin is required for shipping product around New Zealand, road distribution, overheads, administration, marketing costs, the retailers’ margin, and the wholesalers’ margin. * The term ‘fuel price’ refers to the ‘pump price’ - the price that consumers pay for fuel at the retail service station. l

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Retailers’ Eftpos machines disconnected Approximately 400 Eftpos machines around the country were disconnected from the Paymark network in midMarch, resulting in those retailers being unable to process Eftpos transactions. The disconnections were because retailers, despite months of warning, had not upgraded out-of-date terminals. The terminals posed risks to the safety and security of transactions, said a Paymark spokesperson. The retailers concerned had been operating under an agreement with their bank, which allowed them extra time to get their equipment upgraded. Some of these agreements date back months; others, years. A series of communications was sent to the retailers over the past three months from both Paymark and the banks, outlining that their terminals would be disconnected on the March 14. The affected retailers represent a crosssection of industries ranging from small businesses to large corporate merchants. Paymark ceo, Simon Tong, said the message is simple: retailers who do not upgrade in time will be disconnected – get it done now. “The cost of upgrading is not going to get any cheaper. There are plenty of excellent deals out there at the

moment – our partners are working hard to make the process as easy as possible. This particular group of retailers had time to make the switch, but ignored our warnings and as a result will be unable to process Eftpos transactions on our network,” said Tong. He added that reconnecting is a simple process – retailers can be up and running as soon as they connect a compliant terminal to the network. Operating without Eftpos will become a reality for more and more retailers if they do not make the move to the more secure version 6.0 Eftpos terminals by the nationwide cut-off date of June 1. The March disconnections applied to a small group of retailers whose agreement with their bank to run old equipment had expired, but all retailers who are not yet using compliant equipment need to make the switch in time for June 1. “We’ve been urging people to upgrade for some time now and the response from most retailers has been fantastic. The sooner the remaining retailers make the move, the better. Leaving things to the last minute won’t work and we owe it to the 75,000 retailers with compliant terminals to stay true to our disconnection date,” concludes Tong. l

Praise for biodiesel pilot programme Happy operators of 66 vehicles using up to 15,000 litres of biodiesel per month and a series of national commendations demonstrate the success of New Zealand’s first community biodiesel pilot programme just one year after its establishment. The pilot programme was launched in Queenstown in March 2010 by the Queenstown Lakes Biodiesel Consortium, led by the Otago Polytechnic Centre for Sustainable Practice. The consortium provides New Zealand’s first public biodiesel refuelling facility and its development was funded by EECA (Energy Efficiency and Conservation Authority). The groundbreaking community initiative brought biodiesel (Biogold NZ20 – a blend of used cooking oil and mineral diesel) to Queenstown and has 20 local tourism operators using biodiesel in 66 commercial vehicles. It is estimated that collectively these 66 vehicles have already saved up to 38 tonnes of CO2 from entering the atmosphere. Tim Barke of tour operator Kiwi Discovery has been involved with the programme from its inception and is keen to help grow the use of biodiesel.

FMCG april 2011

“The pilot has been very successful for us and we’re delighted to report absolutely no issues in running vehicles on biodiesel,” said Barke. “We are most certainly prepared to increase our use of the fuel as much as possible. I’d like to see biodiesel in a truckstop so it’s easy for all big commercial vehicles to access. The ultimate goal for me is to get biodiesel available to the general public through mainstream fuelling facilities,” he said. The Centre for Sustainable Practice has also received three national awards recognising the success of its work in the Queenstown Lakes District. Celebrating Excellence and Innovation in Energy Efficiency and Renewable Energy the Centre was commended in the Transport, Community and Renewable Energy categories at the Energy Efficiency and Conservation Authority (EECA) awards held late last year. l

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april 2011 FMCG

the business of liquor reselling 58

FMCG February 2010

Easter Show It’s hard work, but senior wine judge Sam Kim is loving it! Our panel of five judges were faced with 44 glasses of wine at 8:30 in the morning of the second day of judging. It was a Saturday morning when I would normally indulge in a buttery croissant, chunky strawberry jam and strong coffee. On this day, however, we were getting ready for the serious work of wine judging at the Royal Easter Show Wine Awards, New Zealand’s longest running wine competition in its 58th year. I was slightly daunted by the number of glasses lined up like dominos that went right around the trestle table, yet I was strangely exhilarated. Show time. We needed to taste each wine carefully giving due consideration, write brief notes, and once finished tasting we would sit down to add up our individual scores, with some discussions on the wines that we perhaps didn’t agree on. We would then re-taste the top scoring wines to ensure our initial assessments were correct before awarding medals. All this before morning tea. Then another flight of wines before lunch, and so on until the late afternoon. These are long days of focusing on something that is extremely repetitive. Yet I love doing

it and am still learning even after 15 years of judging. It’s a privilege to work with a great team of experienced judges, and to be part of this exciting wine industry. The Royal Easter Show wines are judged near the beginning of the year, usually in mid February. It’s a great time to be looking at new vintage aromatic wines – Sauvignon Blanc, Pinot Gris, Gewürztraminer and Riesling – as they have had time to settle down over summer. At this year’s show 2010 aromatic whites and 2009 Chardonnays looked impressive. They showed fruit purity and engaging mouthfeel. Sauvignon Blancs were immensely appealing with loads of juicy fruit and bright acidity. Pinot Gris are better this year too. Unfortunately there are still many dull, sad-looking Pinot Gris lacking flavour intensity, but the good examples do show better mouthfeel and richness. Styles of Chardonnays varied considerably, ranging from the light and crisp to the fruit-forward and plush ones, and to the rich and complex beauties with stylish oak influence. There are an increasing number of Chardonnays exhibiting savoury or ‘funky’ notes from

Wine Awards 2011

indigenous fermentation and extended lees maturation, making the wines intriguing and seductive, although not everyone is a fan of this style. After largely disappointing Pinot Noirs from the 2008 vintage, currently available 2009 wines show more consistency and concentration as well as the all-important silky texture. Hawkes Bay’s fuller-bodied reds (Cabernet, Merlot and Syrah) from the 2009 vintage looked very strong. These are intense and powerful, yet perfectly balanced, reds that you can drink young or put away for later enjoyment. There are some sceptics who feel these wine shows are archaic and serve little purpose, ‘like a beauty pageant’. One argument is that today’s wines are sold on brand profile and price. Of course, they are critical factors. But for long-term

“Wine show results are some of the most useful tools in finding great bargains as well as making new discoveries.” survival of each brand as well as the whole New Zealand wine industry, quality must be part of this equation. Wine shows are not perfect. Nothing is. They do however judge wines without prejudice (wines are tasted blind) so that modestly priced wines such as Dashwood, Thornbury, Mud House and Lindauer can win gold medals along with other prestigious and expensive labels. Wine shows encourage and reward wines showing varietal purity, regional integrity, individual character and overall quality. Used as a guide, not as a bible, wine show results are some of the most useful tools in finding great bargains as well as making new

discoveries. For more information on various wine show results, go to www.wineshow.co.nz. l

Sam Kim is an independent wine reviewer, senior wine judge and author of the wine orbit blog. For informative wine comment go to wineorbit.co.nz

april 2011 FMCG

EASTER SHOW

BABICH Marlborough PINOT GRIS 2010 “This is an appealing style of Pinot Gris displaying peach, pear and citrus characters on the nose. The palate is fruity and smooth with a touch of sweetness which is nicely balanced by the acidity. A generously flavoured and lively wine with plenty of tasty flavours.” -Sam Kim

Esk Valley Pinot Gris 2010 This is the 10th vintage release of Esk Valley’s Pinot Gris and the style continues to be refined. Flavours of peach and pineapple with intriguing spice notes make for a food friendly wine, rich with a long dry finish. Enjoy this crafted wine with your favourite white meat or seafood dishes.

Nautilus Sauvignon Blanc Marlborough 2010 26 years’ experience have resulted in the Nautilus Sauvignon Blanc 2010 displaying multilayered characters of fresh lemon thyme, tomato leaves and wet stones. A mouth watering yet smoothly integrated palate reveals notes of tropical papaya and Tahitian lime and a strong textural component.

Brancott Estate Reserve Brut Cuvée Brancott Estate Reserve Brut Cuvée is an elegant, refreshing wine that combines the creamy elegance and refreshing citrus notes of Chardonnay with Pinot Noir adding complexity. Brancott Estate - named in honour of Brancott Vineyard, our original Marlborough vineyard.

Giesen “The Brothers” Pinot Noir 2009 Aromas of ripe dark berryfruit, bramble and earthy notes. Considerable depth but with a perfumed lift with subtle cocoa and oak aromas. The palate is silky with complementary oak structure and flavour.

Omaka Springs Estate Pinot Gris The 2010 Omaka Springs Estate’s Pinot Gris is a fruit-driven Alsacian style with a a luscious mouth feel which displays nectarines, peaches, spiced pear, a honeyed sweetness before ending with a classic clean finish.

Dashwood Marlborough Pinot Gris 2009 A fresh and vibrant wine with concentrated lychee, pear and spice flavours. Made in a dry style, it is creamy and mouth filling with soft texture and exquisite balance. Available from New World Supermarkets.

Nautilus Cuvée Marlborough NV The Nautilus Cuvée style embodies elegance and delicacy and at the same time shows complexity and fullness of flavour. A graceful well structured wine where the fruit flavours harmonise with yeast derived notes and crisp acidity to give a lingering dry finish.

Seifried NELSON GewÜrztraminer The Seifried family have been growing Gewürztraminer in the Nelson region since the early 1970s. This intensely perfumed and gingery palate offers an explosion of flavour and bright spicy notes to make it truly memorable.

FMCG april 2011

WINE AWARDS

2011 Highlights

Stoneleigh Marlborough Riesling 2010 Crisp, clean and fruity - Stoneleigh Marlborough Riesling displays vibrant fruit intensity with lifted lemon-lime and white nectarine, coupled with apricot and spice on the nose. True to Stoneleighâ&#x20AC;&#x2122;s distinctive style, this classic Riesling captures the essence of Marlborough - New Zealandâ&#x20AC;&#x2122;s most acclaimed winemaking region.

Vidal Reserve Hawkes Bay Chardonnay 2009 This classic Hawkes Bay Chardonnay reflects site and a traditional, sensitive approach to winemaking. Fragrant citrus, flint and roasted nut aromas lead into a seamless palate of stonefruits and lemon zest. Expressing an underlying minerality, this naturally fermented wine is complex, balanced and elegantly styled.

Vidal Reserve Hawkes Bay Syrah 2007 Made from grapes grown in the prestigious Gimblett Gravels, this classic Hawkes Bay Syrah displays aromas of blackcurrant, spice, violet and black pepper. Showing complexity, purity of fruit and depth of flavour on the palate this wine is elegant, well-balanced and exhibits supple tannins and a long, concentrated finish.

Tiki 2010 Sauvignon blanc Pale straw, bright colour, fresh, lifted nose with hints of citrus/ herb like spice and capsicum, youthful aromatic bouquet and soft textured flavour, balanced with fine acidity, medium weight in dry finish.

Vidal Marlborough Riesling 2010 Floral and lime aromas combine with citrus and lime flavours on the palate in this elegant and drystyled Riesling. A touch of residual sugar is balanced and underpinned by a taut natural acidity delivering a dry finish on the palate.

Yealands estate Sauvignon blanc 2010 Selected from two of the best Sauvignon Blanc blocks on Seaview Vineyard, this Sauvignon Blanc displays an intense mineral and fresh thyme aroma, balanced by a ripe tropical fruit character and a lingering finish.

april 2011 FMCG

A ‘Super Send Off’ New Zealand’s popular beer brand Tui is giving consumers a chance to be one of the 20 lucky lads to win a ‘Tui Super Send Off’. The Tui Super Send Off will see one lucky person and three mates setting off to South Africa for a spot of shark diving, a game park adventure, hospitality at the famous Victoria Falls and a big footy match featuring a couple of the world’s biggest teams! Four monthly winners (February to May) will receive a Tui Super Send Off to Brisbane for a weekend with three mates where they’ll get to experience a WRX Rally and a footy match. For a chance to win, Tui fans simply need to purchase specially marked Tui Blond 12 packs or Tui 15 packs at their local supermarket or specialist liquor store. The Tui Super Send Off is being promoted across New Zealand TV screens through a new commercial. l

More accolades for Villa Maria Estate At the Easter Show Wine Awards 2011, Villa Maria’s managing director and founder Sir George Fistonich was honoured with the announcement that he has been inducted to the New Zealand Wine Hall of Fame for services to the wine industry. The Royal Easter Show Wine Awards is New Zealand’s oldest wine competition and this year had a record 1500 wines entered from 276 wineries around the country. In a first for the show, the Winemaker of the Year Award was a joint award given to Villa Maria Estate’s Group Winemaker Alastair Maling MW and Senior Auckland Winemaker Nick Picone. This haul of awards follows the announcement that Villa Maria Estate secured a record 17 Gold medals at the show.* Villa Maria has been New Zealand’s most awarded winery for 30 years. Founded by George Fistonich in 1961 and still privately owned today, Villa Maria is one of the great wine companies of the world. Sourced from expertly managed wineries in the best growing regions of New Zealand, the Villa Maria Estate range is enjoyed in over 50 countries worldwide. With a strong sustainability focus and absolute commitment to quality, Villa Maria has won critical acclaim for its ability to “express individual winemakers’ flair” with the stamp of a “perfectionist’s zeal” and to create “beautifully crafted” wines of “supernatural consistency”. In 2004 Sir George was shortlisted as one of the 50 most prominent figures in the wine industry by UK’s Wine International magazine and in 2005 he was named New

FMCG APRIL 2011

Zealand’s Ernst & Young Entrepreneur of the Year. Sir George was knighted for his service to the New Zealand wine industry in 2009. Villa Maria Estate remains a family- and New Zealand-owned company that employs 250 staff and owns 350 hectares of grapes in Marlborough, Hawke’s Bay, Gisborne and Auckland. * For a comprehensive list of Villa Maria’s awards visit www.fmcg.co.nz l

Winemakers, from back left, Nick Picone, Sir George Fistonich, Karen Fistonich, Simon Fell. Bottom left to right, Dave Roper, Alastair Maling MW.

Win a case of Pinot Noir! Subscribe to FMCG this month to be in the draw to win one case of 2009 Waipara Hills Waipara Pinot Noir, valued at over $250 (see page 19 for more details). Celebrate the soul of the South with the 2009 Waipara Hills Waipara Pinot Noir â&#x20AC;&#x201C; an award-winning wine with a fresh new look. With its lifted aromas of plums, dark cherries, leather and dried spice enhancing the immediate appeal of the wine, red wine lovers will enjoy the soft and silky beginning that leads to a full, structured palate with dark red fruit characters that

continue to linger. Waipara Hills Pinot Noir has proved a standout success for the company, receiving Highly Commended at the Sydney International Wine Competition this year. The wine was also rewarded with an Elite Gold at the Air NZ Wine Awards and Gold at the Wrest Point Royal Hobart International Wine Show in 2010. Waipara Hills wines are distributed by Hancocks and available in leading supermarkets nationwide (RRP $18.90 -$21.90). l

APRIL 2011 FMCG

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‘ Sm i r n o

The Checks with Dan Michaeli an d Pip Larsen, brand manager for Smirnoff.

Projects’ was an ‘Smirnoff Night e One of the four four events wer e Th bie theme. . apocalyptic Zom UR FO mentary on TV filmed for a docu

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 and go in the draw to win 1 x 12 pack of NZ PURE Cider and 1 x 12 pack of NZ PURE Lager worth $50. Just email your high res image with a caption and your contact details to: editor@fmcg.co.nz

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Trade visitors and the public enjoyed excellent hospitality at Auckland’s Villa Maria Estate.

Stella Artois Cup.

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Roxy Mus c o n c e r t ai tc V i l l a M ar i a

Nardine an dS owners fro imon Hunt, fashion bou m Havelock North, won tique Artois Cup Couture. the Stella

DIARY 2011 APRIL 21-25

ROYAL EASTER SHOW ASB Showgrounds Auckland www.royaleastershow.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

PRIDE IN PRINT AWARDS Wellington www.prideinprintawards.co.nz/2011

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 9

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

15-17

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

MASSEY UNIVERSITY FOOD AWARDS Auckland www.foodawards.massey.ac.nz

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

SEPTEMBER 2

ENVIRONMENTAL PACKAGING AWARDS Auckland www.packaging.org.nz/awards_2011/ awards_2011.php

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

5-8

FINE FOOD AUSTRALIA Sydney www.finefood.com.au

OCTOBER 8-12

ANUGA Cologne, Germany www.anuga.com

NOVEMBER 2-4

FGC ANNUAL CONFERENCE Wellington www.fgc.org.nz

NARGON SUPPLIER AWARDS Wellington www.nargon.co.nz

Is your event or trade fair featured here? If you’d like to be included please email: editor@fmcg.co.nz

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