FMCG May 2011 by mediaweb

incorporating

9 421902 251016

MAY 2011 Volume 17 No 4 $9.15

THE BUSINESS OF MANUFACTURING • LOGISTICS • SUPERMARKETING

fmcg . co . n z

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Help us to make a difference

www.purex.co.nz

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Consumers feel that our philosophy on caring is appealing and meaningful Source: TLE Research 2010

We care abou t in our commu people nities

We care about our environment

Certified by the Forest Stewardship Council (FSCâ&#x201E;˘) Certified by Environmental Choice NZ (ECNZ)

Help us to make a difference

Achieved a smaller environment footprint at our Kawerau plant

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New mega-long 6’s - New Zealand’s longest roll 500 sheets per roll means changing less often 21% less packaging and 12% less landfill waste compared to regular rolls Builds on success of mega-long 4’s, the No 1 SKU in growing segment Source: Aztec Total Key Accounts Toilet Tissue market data

Show you care and drive sales by choosing Purex

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contents

6 Editorâ&#x20AC;&#x2122;s note 8 Industry news 13 Subscription form 17 FMCG online 28 Whatâ&#x20AC;&#x2122;s hot

may 2 0 1 1

Features 18 A new aisle in town?

Demand for allergy-friendly products is at an all-time high

44 Product recalls

Expert legal advice from Hudson Gavin Martin

46 The luckiest bees in the world

Category checks 22 Spreads 32 Oils 38 Patent Medicines

Regulars 12

Fresh and local In season

14 Deli counter

Adding panache to winter meals

OUR COVER Purex is embarking on a significant re-launch campaign with a new genuine and engaging brand philosophy.

contents

Retail Meat Retail Meat NZ conference highlights

may 2 0 1 1

16 FGC

Focus on food safety â&#x20AC;&#x201C; not politics

37 GS1

Synchronised thinking

42 Nargon

Welcome changes

43 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

48 Feature

Perfect pies

55 Industry news 56 Nargon

Tough times ahead

57 Directory 60

58 Feature

Yealands Estate evolves

61 Industry news

Brilliant ranging, made easy Taste the success of the Ingham Red Box 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 Retail Support – significant and ongoing marketing support ACU_ING_10172

For more information about Inghams Red Box range call Inghams sales department on 0508 800 785.

e ditor ’s note Vol 17

No 4

may 2011

issn 1175-8279

Incorporating

Serving the business of manufacturing, logistics and supermarketing

tamara rubanowski – editor editor@fmcg.co.nz

Juleigh buchan – account manager Ph: 09-529 3000, Mob: 021 140 3456 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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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.

‘Eating at home’ – a familiar trend returns Just when some positive economic reports and improving consumer confidence news were emerging earlier this year, a number of natural disasters and the ongoing political unrest in the oil-rich Middle East region took a toll on fuel prices. This will have a direct effect on consumer spending power again, shifting consumers back to shopping for value until prices subside. The increasing prices for fuel and many other items are putting financial pressure on New Zealanders who will be forced to make hard choices about how to spend their money. Wages are not keeping pace with inflation, which means consumers will need to dig deeper to pay for everyday items. To adapt to this situation, retailers and advertisers need to explore the opportunities to convert the likely decline in outof-home eating and entertainment into spending for at-home options. What are you doing to actively engage shoppers on this front? Are you considering promotions and messages that reflect the benefits of home-cooking and the enjoyment of sharing meals with family and friends? NARGON executive director, Trina

Tamara Rubanowski editor@fmcg.co.nz

Snow, confirms there has been an upsurge of interest in “old-fashioned cookery”, including baking, slow cooking and using cheaper cuts of meats. In this issue we look at some basic pantry staples such as oils and spreads, talk to key players in the pie industry and examine new trends in the over-the-counter patent medicines category. With the onset of colder weather comes a demand for cold and flu remedies, painkillers and immune-boosting vitamins and supplements. Keeping healthy is top of mind in winter and this will affect food choices as consumers look for warming soups, fortified products and vitaminladen fruit and vegetables. Produce managers and store managers are being asked more questions than ever about the foods we sell, as shoppers seek more information and healthy eating advice. Has your team got all the information they need to meet consumers’ demands? Look out for regular updates on www. fmcg.co.nz and on www.foodnews. co.nz, our free e-news service for all FMCG subscribers. Plus if you subscribe this month you will be in the draw to win a case of sparkling Sauvignon Blanc!

news Lucky ticket sold at New World One of two $17.7 million Powerball prizes was claimed on April 11 by a married couple, who wish to remain anonymous. They bought their Lotto Powerball ticket at Dannevirke New World’s Lotto counter and said: “We have never won anything before, so this win is just magic, but very hard to take in.” The pair, who have children, were shocked by their win. They said: “It didn’t seem real, we had been joking all Saturday about what we would do if we won, and now we actually have. Now all those things we talked about doing are actually possible, like buying a business so we don’t have to work for anyone any more, looking after the kids’ futures, helping out family and charities and taking off on some overseas trips. This will set us up for life.” They kept the winning ticket in the drawer of the bedside cabinet, before they officially claimed their win. “We drove a while to another town, hoping that no one would recognise us,” they said. It was just chance that they made the purchase at New World Dannevirke. “We like to think that small towns are luckier though.” The couple said they were looking forward to getting some sleep. “We didn’t sleep a wink all Saturday night. We just kept tossing and turning as we couldn’t believe that we had won.” They both said they would go to work on the Monday after their big win. All of Dannevirke is making wild guesses about who in town might be the family that won the big prize. New World owner-operator Garry Hasler said the town was buzzing with rumours in the days after the win about whether they were locals or not. The record $35 million Powerball jackpot was split between two

Dannevirke New World owner-operator Garry Hasler and Lotto staff member Elinor Hughes at the counter where a winning Powerball ticket was sold for the big jackpot draw on April 9. Photograph courtesy of Hawke’s Bay Today.

winners, who each take home $17.6 million and a further $111,111 for claiming first division. The other winning ticket was bought in Hamilton. Hasler said his New World store had never sold a winning ticket that big. The largest was a $100,000 Winning Wheel earlier in the year. “My congratulations to the winners. It’s awesome for them and for us to be part of the excitement. Any good news for Dannevirke is welcome,” he said. “We don’t know which of our staff sold the winning ticket but all of the seven who work the counter are naturally keen to claim responsibility”. l

Food prices on the rise Food prices rose 0.3% in March 2011, after a relatively flat (up 0.1%) February 2011 month, according to Statistics New Zealand. Food prices in March were up 5.5% on a year earlier. This included a 2.2% increase in October 2010, when goods and services tax rose. The meat, poultry, and fish subgroup had the largest impact on food prices in March, rising 1.5%. This was influenced by price rises for beef (up 3.8%), processed meat (up 1.4%), and lamb (up 3%). Grocery food prices rose 0.4% in March 2011, with higher prices for bread (up 4.6%) and cakes and biscuits (up 4.3%).

FMCG May 2011

“Bread prices are now 2.4% higher than when they previously peaked, in May 2009,” Statistics NZ prices manager Chris Pike said. Fresh milk prices fell slightly (down 0.2%) in March, down from their peak in February. Supermarket chains announced in February that prices would not increase for the rest of 2011. The only subgroup providing a downward contribution to food prices in March was the fruit and vegetables subgroup (down 1.6%). This was influenced by seasonal price falls for apples (down 25.4%), potatoes (down 10.8%), and grapes (down 29.8%). l

n ews Greenstone to gift laptops to Christchurch community Greenstone Energy is gifting 68 refurbished laptop computers to worthy recipients in Christchurch, and is inviting applications for the laptops through the company’s Facebook site. Greenstone is the New Zealand company which acquired Shell’s New Zealand retail and distribution business in April 2010, making Greenstone the country’s largest Kiwi-owned fuel retailer.

Greenstone’s business technology and transformation manager David Scott said customers had been supportive of a new Kiwi company and Greenstone was committed to giving back to New Zealand communities. “We’re not what people expect from a traditional fuel company. We’re here to do things differently and we’re here to make a positive contribution to New Zealand. “As part of upgrading our office systems, we have 68 laptops that we’re making available to Christchurch folk who can put them to good use. “All people have to do is go to our Facebook page at www. facebook.com/greenstoneenergy and tell us why they need these machines and how they can be used to benefit Christchurch.” Applications will be judged by Greenstone staff and applications close Tuesday 31 May. Greenstone has partnered with both Remarkit and Microsoft, which have ensured the computers are ready to use, with up-to-date and licensed software. Scott said the initiative was a simple but effective way to contribute to the recovery of the Christchurch community. “We are deeply saddened with what has happened in Christchurch. We’re grateful for the support we’ve been given as a new Kiwi company from the people of Christchurch and wanted to use this as an opportunity to give something back. “We hope that the people of Christchurch can put these computers to good use for the benefit of the community,” he said. l

New ceo for Woolworths Woolworths’ chief executive Michael Luscombe will retire from Australia’s largest retailer at the end of September. Luscombe will step down after five years as chief executive of Woolworths to be replaced by Grant O’Brien (pictured), the company’s chief operating officer for food and petrol. O’Brien, who has been at Woolworths for 24 years, said that he was “honoured” by the appointment. “I see myself as being very much an example of everything Woolworths stands for today, in terms of having a strong supermarket grounding but with a diversity of experience across our broader portfolio of businesses,” O’Brien said. Woolworths’ chairman James Strong said that O’Brien was a “highly capable successor” with a wealth of experience across the company. “It is especially pleasing to appoint our 12th ceo from within the ranks of the company,” Strong said.

However, O’Brien takes the helm at a challenging time for Woolworths. The company’s sales have come under pressure from a constricting consumer environment and the resurgence of its closest rival Coles, which has started to reap the benefits of a turnaround process. In January, Woolworths slashed its forecast for annual earnings growth from a range of 8%-11% to 5%-8%. O’Brien will take up the posts of deputy ceo and ceo-designate immediately, working “closely” with Luscombe until he takes over the reins on 1 October. l May 2011 FMCG

news Countdown Colombo Street reopens Countdown Colombo Street opened on Wednesday 13 April 2011 and is back to normal trading hours, after an extensive clean-up job following the Christchurch earthquake on February 22. The supermarket did not suffer any structural damage from the earthquake, but an electrical fire broke out that night and the entire store was affected by water damage. Countdown’s chief operating officer Dave Chambers said it has been a long wait for employees and customers while extensive recovery work took place. “We essentially had to strip the entire store and start again,” Chambers said. “Our Colombo St team members and other Countdown team members have been involved right throughout the clean-up process, working hard to ensure we could open again as soon as possible for the local community.” Chambers said the store was able to recover some of the stock to donate to the SPCA and the Salvation Army. “The good news is that Countdown Colombo St is now

looking very sharp and ready to serve our customers, with new fixtures and fully restocked shelves.” Countdown Colombo St employs 140 team members and will resume normal trading hours of 8am-10pm. “We’re pleased our team members have been able to return to work as expected,” Chambers said. He added that Countdown was committed to providing employment for its Christchurch employees. “We have been able to maintain employment for all 2250 of our employees in the Canterbury region despite having three stores closed and hundreds of employees unable to work in their regular stores.” Countdown is collecting donations for the Salvation Army Canterbury Earthquake Appeal in all Countdown, Woolworths, Foodtown, SuperValue & FreshChoice stores nationwide. Over $500,000 has been donated by customers and employees across New Zealand so far. In addition, Woolworths in Australia has collected over NZ$900,000 across all Woolworths supermarkets and Dick Smith stores in Australia. l

Sweet discovery University of Rhode Island researcher Navindra Seeram has discovered 34 new beneficial compounds in pure maple syrup and confirmed that 20 compounds, discovered last year in preliminary research, play a key role in human health. The assistant pharmacy professor says that his team has now isolated and identified 54 beneficial compounds in pure maple syrup from Quebec, five of which have never been seen in nature. “I continue to say that nature is the best chemist, and that maple syrup is becoming a champion food when it comes to the number and variety of beneficial compounds found in it,” Seeram said. “In our laboratory research we found that several of these compounds possess anti-oxidant and anti-inflammatory properties, which have been shown to fight cancer, diabetes and bacterial illnesses.” These discoveries of new molecules from nature can also provide chemists with leads that could prompt synthesis of medications that could be used to fight serious diseases, Seeram said. “We know that the compounds are anti-inflammatory agents and that inflammation has been implicated in several chronic diseases, such as heart disease, diabetes, certain types of cancers and

FMCG May 2011

neurodegenerative diseases, such as Alzheimer’s,” Seeram said. As part of his diabetes research, Seeram has collaborated with Chong Lee, professor of nutrition and food sciences in URI’s College of the Environment and Life Sciences. The scientists found that maple syrup phenolics inhibit two carbohydrate hydrolysing enzymes that are relevant to type 2 diabetes management. The irony of finding a potential anti-diabetes compound in a sweetener is not lost on Seeram. “Not all sweeteners are created equal,” he said. “Investing in maple syrup knowledge and innovation will bring the products to another level in a few years,” said Serge Beaulieu, president of the Federation of Quebec Maple Syrup Producers and member of the Canadian Maple Industry Advisory Committee. Seeram and Lee’s work on diabetes and maple syrup will be published in an upcoming edition of the Journal of Functional Foods. “While we have a wide variety of fruits and vegetables in our food chain, maple syrup is the single largest consumed food product that is entirely obtained from the sap of trees,” Seeram said. Seeram is not suggesting that people consume large quantities of maple syrup, but that if they are going to use a sweetener on their pancakes, they should choose pure maple syrup and not the commercial products with high fructose corn syrup. l

n ews Launch of 100% plant-based PET bottle in 2012? PepsiCo has announced that it has developed what it says is the world’s first PET plastic bottle made entirely from plantbased, fully-renewable resources, enabling the company to manufacture a beverage container with a significantly reduced carbon footprint. Made entirely from bio-based raw materials, the ‘green’ bottle mimics the properties of PET and is fully recyclable. PepsiCo’s “green” bottle is made from bio-based raw materials, including switchgrass, pine bark, and corn husks. In the future the company expects to broaden the renewable sources used to create the bottle to include orange peels, potato peels, oat hulls, and other agricultural byproducts from its foods business. “This breakthrough innovation is a transformational development for PepsiCo and the beverage industry, and a

direct result of our commitment to research and development,” says PepsiCo chairman and ceo Indra Nooyi. “PepsiCo is in a unique position, as one of the world’s largest food and beverage businesses, to ultimately source agricultural byproducts from our foods business to manufacture a more environmentally preferable bottle for our beverages business.” Combining biological and chemical processes, PepsiCo has identified methods to create a molecular structure that is identical to petroleum-based PET, which results in a bottle that the company says looks, feels, and protects its product identically to existing PET beverage containers. PepsiCo will pilot production of the new bottle in 2012. Upon successful completion of the pilot, the company intends to move directly to full-scale commercialisation.. l

Advertorial

Purex, care that makes a difference In May 2011 Purex New Zealand’s leading toilet tissue brand is embarking on a significant re-launch campaign with a new genuine and engaging brand philosophy. This new philosophy is meaningfully appealing to consumers* and challenges current consumer purchase behaviour in the Toilet Tissue category. Caring for others and the environment is at the heart of the new “Care that makes a difference” Purex brand campaign. Caring begins at home, connects us with our neighbours and our communities making our country and the world a better place. For over 50 years Purex has truly cared about Kiwi families, providing a toilet tissue that’s soft, thick and strong, making it New Zealand’s most trusted brand. Rolly, the brand icon since 1991 is now a much loved Kiwi icon and integral part of the Purex brand.

Purex is stepping up its community support with an on-going partnership with New Zealand Red Cross. Purex is the sole sponsor of the Red Cross Annual Appeal and is working with them to help build stronger communities and care for fellow Kiwis when help is needed. The new Purex range features three significant environmental achievements. The new range is certified by the Forest Stewardship Council (FSC ) meaning all the pulp used is accredited as sourced from responsibly managed forests. The range also features Environmental Choice NZ (ECNZ) certification which Purex has had on pack since October 2007 meaning certified best practices have been used in the production of Purex to reduce the impact on the environment. Purex is also doing its bit to reduce its environmental footprint by harnessing sustainable geothermal steam at the Kawerau site vs natural gas to achieve a 39% reduction in carbon emissions**.

™

*TLE Research 2010 ** Based on Corporate Greenhouse Gas Reporting – Data and Methods, 2008. New Zealand Ministry of Environment, Scope 1 and 2 emissions.

May 2011 FMCG

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

PRIME Pip fruit, that is pears and apples, are best buying along with the new Kiwi kiwifruit and feijoas. Lots of other new fruit: tamarillos, Keri berries, persimmons and quinces. Vegetables starting this month are yams, chokos and southern parsnips, and we are still good for red cabbage, Brussels sprouts and kumara. Best fish for May are kahawai, piper and northern bluefin tuna, if it doesn’t all get exported… and best of all there are still some Bluff oysters!

FINISHED … for the year are all our stone fruit, beans and sweet corn.

FISH

Lamb

Inshore species will slow down as we move into early winter. Groper (Hapuku) is a good fish. It is a good time for Hapuku – but it is very expensive all the time. Tarakihi, that staple of the industry’s main season, is slowing and finishes in June, but there will always be some around. Mullet is a beautiful fat fish, still plentiful and at a great price. There will be lots around until mid winter. Gurnard is always available; a lovely fish you can’t afford to ignore. Again this month trevally and kahawai are in good nick and are greatly underrated inexpensive fish species. Flounder will get scarcer this month. Tuna quality is still good and the southern bluefin season is on, but we will not see much of this fish – the best of the tuna species – as it is worth too much to the export trade. The southern blue cod season is away so we should see a lot more in the marketplace from now on. Warehou is another southern species. The main season is starting and the price is always reasonable.

Not good either. Big changes are being seen in lamb and mutton prices. Sheep meats are well ahead of Beef + Lamb New Zealand’s early season forecasts. April lamb markets remained firm and with the onset of autumn and winter, processing numbers are finally seeing most plants reach full capacity, but schedules have continued to rise and with some companies continually announcing weekly processing premiums, prices will just firm further. So the trend is rising and at $6.30/kg average this is $2.00/kg ahead of last year.

MEAT Price wise, none of the news is good news. All the hoofed animals are in fine condition, but the schedules have continued to rise.

Beef Local trade schedule prices have led the export schedules at between $4.30-$4.60/kg. Local trade prices for beef are $1.00$1.11/kg ahead of last year. Prices for prime steers at sale yards are frightening at over $300 higher than during the same period last year. And dairy farmers have also seen a big lift on their cull cows’ values, with prices rising by nearly $250 per head on last year.

Mutton The ewe kill is three months ahead in numbers compared to last year and with stock numbers down nationally, it would suggest very few are left to harvest. Prices will stay strong.

Farmed Venison Not much joy here either as schedule prices moved up again and are now 70 cents a kg ahead of last year and predicted to peak in the $9 range by early spring. Prices will continue to move up and have now reached $7.68/kg to the farmer. With the Euro now 13% ahead of last year this is influencing the schedule prices, upwards. Also production levels are 22% down, which is helping to keep prices high. Kill estimates for the year are well back and are not predicted to pick up until 2012 when the increasing hind numbers are producing.

FRUIT Peaches, plums, nectarines and apricots are finished, but all the Kiwi-grown apples are in the market, as are pears. Avocado quality appears to be falling off, but feijoa quality, size and numbers are better than last year. All the imported subtropical and tropical fruit are around.

Mangoes are in the markets and we are seeing a lot of the Kent and Keitt varieties (the green ones) from Mexico. There are some very good quality organic ones from Peru at present. This variety seems to keep better and bruises less easily. New Zealand Kiwifruit are back. All varieties of New Zealand grown melon are about done. You will find some local rock and honeydew out there – watch the quality – but then there are now the imported varieties available. The passion fruit season is about to finish, but New Zealand’s first persimmons will arrive.

VEGETABLES Most of our New Zealand grown summer and autumn vegetables are shot but … yams will start to show up this month. Brussels sprouts are in and will be at their best over winter and early spring.

We are well supplied with them from both islands. The main time for fresh Kiwi short cucumbers has had it, but the telegraphs come back in quantity in May – all hot house of course. New Zealand tomato supplies are shortening up and prices are rising. Carrots and parsnips quality is good at the moment, as is kumara. Celery is available all year and improving in quality from now on. Leeks are at their best over the next few months. More Florence fennel is now available, with good quality and larger bulbs at this time of year. Pumpkins are still to be had and in good nick and there will be red cabbage for another month or so. There are good supplies of brown onions with plenty of New Zealand red onions still around, so you do not need to buy the Californian ones.

Potatoes Lots of good quality main crop potatoes all over the place and plenty of variety too. The (so called) Maori potato varieties are becoming more easily sourced as more and more growers are getting into them. You should get samples before you buy as there are about two dozen varieties out there. Each type has a different texture, taste and colour and some varieties are not long keepers. We have been getting some great quality peruperu in particular this autumn and they look like holding on through winter. The trick is they need to be kept in the dark and away from plastic. These old traditional spuds are generally worth the trouble as they knock the socks off the more common commercial varieties. Earth Gems are available – pretty expensive and pretty pretty.

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may 2011 FMCG

Adding panache to winter meals How to make the most of your deli counter? Delmaine brand manager Kathryn Awde explains.

In last month’s column we talked about engaging customers over the deli counter and easing their hesitation when they walk slowly by, squinting at foreign delicacies – but unfortunately antipasto is a seasonal product. Antipasto moonlights in the summer time, when it is time for entertaining and alfresco dining, but with the end of daylight saving summer has also come to an end. That does not mean the end for antipasto in the deli counter, but it can mean a cut back for some antipasto lines. Seasonal changes affect all departments and the deli counter is no different. We are not suggesting getting rid of all antipasto lines, but perhaps looking at a core range to ensure there is less wastage in your store.

08 00

This time of the year brings also a chance to change your customers’ mind set as antipasto lines don’t only have to be used in platters and salads (although this is everyone’s first idea when it comes to this type of cuisine). Antipasto can be a main ingredient and a cost saving one in winter months. Fresh ripe tomatoes can be expensive if not rare during these months, but one does not have to go without or break one’s wallet. Instead why not use sundried tomatoes, which have more flavour than the fresh variety. Sundried tomatoes are more concentrated and caramelized in flavour – which makes them ideal for boosting tomato-based sauces and casseroles (isn’t that why such artisan preserving methods were brought about – to ensure that we can use fresh produce out of season?). Sundried tomatoes, artichokes and chargrilled capsicums are all made from seasonal fresh products, but due to preserving techniques we can ensure these products are available year round. These lines do reach high levels of sales during the summer months and there are a few antipasto lines that reach a spike during the winter months too. Although we can reason that in winter it is logical to condense your antipasto range down in store, some lines can stand the seasonal change.

D E L M A IN E

There are over 100 different varieties of olives, and sales do rise with the sunny weather. Delmaine imports over 30 variants of olives, and one variant that can stand all season changes is the Kalamata olive. This is a core line to have in store year round. It is versatile (even regarded as the king olive in Greece) – as it is an olive that not only has a firm texture for a ripe olive, but can handle cooking at many temperatures. It can also add different flavour and tanginess not only to pizzas, casseroles and pastas, but many other dishes. Whole Kalamata and pitted Kalamata are two variants that should be in your deli year round – and why have both? Pitted is good for convenience, but the flavour between pitted and whole Kalamatas is different. When the pit has been removed from the olive, the brine has penetrated the fruit more directly giving the pitted olive a stronger brine flavour. Hence the choice of non-pitted olives for those who prefer to de-stone or serve whole olives . . . and make the guests work for their supper. Calzones, casseroles, tagines, filo parcels, quiches and pies are all meals that benefit from antipasto ingredients - from olives, to sundried tomatoes, to cubed marinated feta, to capers and chargrilled capsicums. Condensing your antipasto range is a given in winter, but ensure you have the main ingredients to add a bit of panache to main meals this season!

kathryn.awde@delmaine.com • www.delmaine.com

retai l meat

Retail Meat NZ conference highlights By Ashley Gray, Retail Meat New Zealand.

NZ & Australian teams.

The Retail Meat New Zealand conference held recently at Terrace Downs in Canterbury was well received by those in attendance, including 30 delegates from across Australia. The conference was relocated at the last minute, due to the devastating earthquake in Christchurch, and the new venue did not disappoint. The stunning landscape stretched for miles proving to be a picture perfect backdrop for a “butchers bash”. Around 50 delegates arrived early for a full day of Ambrose golf at the venue (which is one of the country’s best). A great round was enjoyed and prizes were presented over hard-earned, ice-cold beers. During the conference programme, delegates heard from a number of different speakers from within the industry. A presentation given by Meat & Livestock Australia (MLA) highlighted its strong point-of-sale material and workshop support for butchers through its Red Meat Networking Club. It is recognised that Australia’s meat industry has a much wider representation by independent butchers in addition to supermarkets. As well as the chalk and talk, delegates witnessed a hands-on demonstration by top European master butcher, Keith Fisher. Without a doubt, the highlight of the 2011 conference was the inaugural Trans-Tasman Butchery Test Match. The test match, sponsored by Beef + Lamb New Zealand and MLA, saw five Kiwi butchers go head to head against five Australian butchers. In an intense two hour battle, the teams were tested on their knife skills, speed and creativity. Both teams worked

Bruce van der Net and Peter Martin at work.

to produce a varied range of cuts from a whole lamb and a side of beef, under the critical eyes of their peers, to produce impressive displays of top quality cuts. The teams were judged by Keith Fisher, Retail Meat New Zealand member support manager Gerry Hogan, and MLA business development manager (Queensland/ Northern Territories) Glen Burke. The judges had a tough task with both teams working quickly and, to the average spectator, flawlessly against the clock. In the end it was the Australians who took the title but, according to Kiwi team member Peter Martin, that’s not to say the Kiwi team is in any way disheartened for the next challenge. “I can’t wait to be a part of something like this again.We were disappointed to lose, but it has made the team even more determined to win next time,” says Martin. This event captured the upbeat, positive spirit of the conference and there have already been discussions about the 2012 test match. Next year’s event will be bigger and bolder, perhaps involving a team from England, and hopefully the New Zealand team will come out on top!

New Zealand team (from right to left): Marcus Waldman, Corey Winder, David Porter, Peter Martin, Bruce van der Net and Calum Sutherland.

may 2011 FMCG

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Focus on food safety – not politics Katherine Rich, CEO, NZ Food & Grocery Council. Email: Katherine.rich@fgc.co.nz

The traffic lights don’t work, finds Katherine Rich.

The subject of food labelling is never far from the front pages in most Western countries. There is a rapidly growing plethora of labelling systems and, a bit like political parties, they all have their strong supporters. Consumer groups, lobbyists and official bodies regularly call for the introduction of their favoured mandatory food labelling scheme. The stated intention is that the labels will allow consumers to make more informed and presumably healthier decisions about what they eat and drink. However, the inconvenient truth is that the vast majority of shoppers do not read labels at all. Even putting that to one side, labels have not proved effective at changing customer behaviour or food consumption patterns. One of the fashionable schemes is known as traffic light labelling and there have been calls for it to be introduced in New Zealand by lobby groups, and more recently in Australia’s Blewett Report. This scheme highlights the total fat, saturated fat, sugar and sodium content of the product on the front of the packaging. The information is displayed in a manner similar to traffic lights, using colour-coded circles to indicate whether there are high (red), medium (amber) or low (green) levels of each nutrient. The system has some initial appeal to laypeople and those who don’t have a detailed understanding of the food industry, because it does not require consumers to perform calculations and most people, at least in theory, know how traffic lights work. On closer analysis, the scheme is overly simplistic and the traffic light gimmick actually sends mixed or even wrong messages about nutrition. On the road a red light means stop and this is exactly what European research indicates many shoppers who see a red light on a packet believe the message is. A consumer who avoids all foods with red lights will miss out on products such as cheese, milk, honey and marmite. Similarly, Kiwis interpret green lights as go. People may feel they are able to eat green light products with no adverse effects. That is simply not true. It is clear that eating even green light products 16

FMCG MAY 2011

to excess will be unhealthy. There is a danger the labels will provide a false sense of security. Finally, everyone has a different interpretation of what amber means. There are robust studies about the effectiveness of traffic light labelling, particularly from Australia. An academic study by Gary Sachs and his colleagues demonstrated that traffic light labelling had no impact on shopping behaviour in a real retail environment. In other words, people’s choices were not affected by the labels. That is not overly surprising. It is a lot to expect a relatively small piece of packaging real estate to change the way we eat and exercise. Changing lifestyles and tackling obesity should not be the responsibility of a small label. It requires consumer education and consumer commitment to change. Overall, the New Zealand food regulatory system is very robust. All food for sale in this country has to comply with the legal and regulatory requirements. In that sense, all food is safe. There is also no such thing as intrinsically good or intrinsically bad food. It is all about moderation, balance and restraint. If people are generally eating well and exercising moderately, an occasional pie or a piece of battered fish is fine. As our grandmothers used to say “all things in moderation”. Consumers, producers, retailers, families, communities, politicians and the media all need to play an active role in creating real change to combat obesity and encourage healthy lifestyles. They need to promote the concepts of healthy eating, adequate exercise, good sleep, balance and moderation. A lot of this is simply common sense that unfortunately we seem to have drifted away from as a nation. There may be a limited role for some form of interpretive food labelling in the future if it can be proved to make a real difference, but food labelling is not a substitute for significant societal change. Sadly, there is no silver bullet or magic wand here, despite some of the more sensationalist claims. That’s why we remind food regulators that as a nation we need to focus on food safety, not food politics.

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

new aisle in town? A

Would you consider a new ‘allergy friendly’ aisle in your store? Tamara Rubanowski found the demand for products that cater for food intolerances and allergies is at an all-time high.

ust a few years ago you would have had difficulty finding gluten-free or dairy-free products in stores, but these days most of us know someone who has a food allergy or intolerance. It might be a child who is allergic to peanuts, a colleague who is wheat intolerant or your friend advised to stay away from dairy foods. So what is the difference between an allergy and an intolerance? And more importantly: how can you help consumers who are affected and are looking for suitable products? Some supermarkets have introduced ‘gluten-free’ shelves and have also responded to an increasing demand for allergy-friendly products such as soy milk, tofu and rice flour. Food manufacturers in New Zealand are required to list the most 18

FMCG MAy 2011

common allergenic foods on their food labels. This includes milk, egg, soy, peanut, tree nut, sesame, fish, shellfish and gluten-containing grains such as wheat. If there is significant risk of crosscontamination, manufacturers also have to include precautionary statements, such as ‘may contain traces of peanuts’. This may occur, for example, if biscuits containing peanuts are produced on the same production line as another biscuit. According to Allergy NZ, about 1% of adults and less than 10% of children are ‘at risk’ of true allergic reactions to foods. A small number of foods are responsible for around 90% of food allergies – including shellfish, fish, milk, eggs, peanuts, tree nuts, wheat and soybeans. The most common allergies in adults are to

peanuts, tree nuts, fish and shellfish. Children are commonly allergic to dairy milk and eggs, with the majority apparently growing out of this between the ages of three and five. There is no proven way to prevent allergies.

‘Mad Butcher’ supports research fund As many as 10 babies born every day in New Zealand will go on to develop food allergy* across all ethnicities and socio-economic situations. Yet very little is really known about food allergy and its effect on New Zealand individuals, families and communities. More research is urgently needed to help with advocacy for improvements in health services, education and resources. To meet this need, Allergy NZ has

featu re

established a Food Allergy Research Fund, which has recently received a generous boost through a $10,000 donation from Peter (‘The Mad Butcher’) and Janice Leitch. “Allergy New Zealand is deeply grateful for the generosity shown by Peter and Janice,” said Allergy NZ ceo Penny Jorgensen. “We can’t thank Peter enough for all the support he has given us over the years – not only in donations but even more in lending his time, his name and his tremendous energy to generating fundraising activities on our behalf.” *Based on 62,960 live births registered in the June 2009 Statistics New Zealand; 6-8% of children under the age of five are affected by food allergy according to international

of reactions from allergic consumers to different crumbed fish and crumbed seafood products. The products did not pose a safety Contamination case risk for people who do not have a in Australia In February this year, Food Standards peanut allergy. Six similar products were recalled Australia New Zealand (FSANZ) advised Australians with peanut al- in Australia in January 2011 due to lergies not to eat imported crumbed the presence of peanuts – a major fish and crumbed seafood products allergen – which wasn’t declared that could be contaminated with un- on the label. The recalled products included: declared peanuts. FSANZ ceo Steve McCutcheon • Coles Frozen Crumbed Lemon said there J11976 had been six reported cases Flavoured Fish Fillets Thank Goodness FMCG Horizontal 1-4 bleed.pdf 1 27/04/11 10:58 research.The 10 per day is the conservative estimate of 6% of children who have food allergy.

• Woolworths Home Brand Lemon Flavoured Crumbed Fish Frozen Portions sold in NSW, ACT and Queensland • Three frozen crumbed seafood products, distributed Australia-wide by I&J to distribution centres, and then on to major supermarkets including Woolworths/Safeway, Coles, Bi-Lo, Metcash and IGA, Pick’n’Pay (Queensland only) and Franklins (NSW only) • Coles Crumbed Black Oreodory Fillets in Light Crispy Breadcrumbs. AM

Thank Hubbards for a great range of delicious gluten free cereals

www.hubbards.co.nz

New

See our stand at the Auckland and Wellington Gluten Free Food and Allergy Shows

MAy 2011 FMCG

feat ure The source of the peanuts was traced to soy flour manufactured in China. FSANZ has been advised that since the discovery of the contamination, the distributor is no longer using the soy flour from the manufacturer responsible. FSANZ is working closely with retailers, manufacturers, importers and overseas food regulators to identify if any other products may be affected. However investigations to date have not uncovered any further contamination in other products.

What is a food allergy? A true food allergy is the body’s response to a food protein, such as nuts or fish. The body mistakenly believes the offending protein, known as an allergen, is harmful and creates antibodies to attack it. Reactions can occur within minutes or up to a few hours after eating the food and include: • difficulty in breathing, or swelling in the throat • swollen or itching lips or tongue • hives, skin rashes or eczema • stomach cramps, vomiting or diarrhoea • faintness or collapse.

What is food intolerance? In food intolerance, the body’s immune system does not create antibodies, as in an allergic reaction. But as in an allergic reaction, symptoms can be seen both immediately and up to 20 hours after a food is eaten, so it can be hard to distinguish between the two. Food intolerance can be a result of a sensitivity to naturally occurring

chemicals in food, such as salicylates, amines and glutamate. Another common food intolerance is to lactose, the sugar found in milk products. This is caused by a shortage of the enzyme needed to help the body digest milk. An allergic reaction to milk is also possible when the body reacts to milk protein, although the symptoms will differ. In contrast to some food allergies, food intolerances aren’t life threatening – but they can impact on health and quality of life. Unfortunately, they can be problematic to diagnose as many of the symptoms – such as bloating, diarrhoea and stomach pain – are unspecific and difficult to attribute to a particular food. The smallest traces of a food can trigger an allergic reaction, whereas small amounts of a food can usually be eaten before symptoms appear in most food intolerances. The amount tolerated, however, depends on the individual. Food allergies and intolerances should be diagnosed by a doctor or registered dietitian before any foods are excluded from the diet. Various methods are used to determine allergies and intolerances, including skin prick tests, blood tests, diet histories, food diaries and elimination diets. Self-diagnosis can lead to the unnecessary avoidance of foods, putting yourself at risk nutritionally. The manufactured foods database (www.mfd.co.nz) provides lists of foods appropriate for people with allergies such as egg, milk, soya, legumes (chickpeas, kidney beans, lentils etc), peanuts and wheat, and for those with lactose intolerance. The food lists of low lactose

manufactured foods, for example, have been compiled from data supplied by food manufacturers. For the purposes of the low lactose list, foods have been included where the lactose content is known to be less than 1g per 100g of food product.When there is a requirement for a total exclusion of lactose then the list of foods suitable for those with a milk allergy is the appropriate one to use. The manufactured foods database has been compiled by Nutrition Services, Auckland City Hospital from information voluntarily supplied by New Zealand food manufacturers.

What is coeliac disease? About one in 100 New Zealanders is affected by coeliac disease, a condition in which the body’s immune system reacts to gluten, found in the grains wheat, rye, barley and possibly oats. This disease causes inflammation of the bowel, which affects the body’s ability to absorb nutrients from food, leading to poor nutrition, bloating, weight loss, diarrhoea and fatigue if not treated. Coeliac disease is treated by following a gluten-free diet, advised by your doctor or registered dietitian. There are an increasing number of gluten-free products available, including gluten-free bread, cereals and bakery products. Further information is also available from the Coeliac Society of New Zealand.

The manufactured foods database (www.mfd.co.nz) provides lists of foods appropriate for people with allergies. 20

FMCG MAy 2011

Useful websites www.allergy.org.nz www.foodstandards.govt.nz www.mfd.co.nz

Q&A Supporting Coeliac Awareness Week 2011 FMCG talked to Vitaco product manager, James Ford. Healtheries is proud to support Coeliac Awareness Week by working closely with Coeliac NZ to get the message out about coeliac disease and what people can do about it.This year coverage includes flyers, posters, media releases, presence at the Gluten Free & Allergy shows and more. One in 100 New Zealanders are affected by coeliac disease, yet four out of five of these do not know they have it. The aim of this yearâ&#x20AC;&#x2122;s campaign is to improve diagnosis rates of coeliac disease among men. The first step is a simple blood test from your GP. Coeliac disease is caused by a permanent and total intolerance to gluten, which is found in grains and cereals such as wheat, barley, oats and rye.The only known treatment is a strict gluten-free diet. Coeliac Awareness week is 21-27 May 2011. For more information visit www.coeliac.co.nz. Which coeliac-friendly products do you sell in New Zealand? Healtheries has a wide range of wheat and gluten-free products available in

supermarkets nationwide, including breakfast cereals, pastas, snack bars, bread and baking mixes under the Simple brand, as well as baking ingredients such as rice flour, rice flakes, cornmeal flour, ground LSA and ground linseed. Healtheries Kidscare brand also has a range of gluten-free snacks, such as Rice Wheels and Rice Rounds in a variety of flavours, and its Rice Wafers are a popular gluten-free choice too. Are you launching any new products for Coeliacs? Healtheries is launching a newlook range of wheat and glutenfree pastas, under the trusted Simple brand, endorsed by Coeliac NZ with the crossed grain logo. Now made in Italy, this great tasting authentic pasta still provides the safety and nutrition required by wheat and gluten-free consumers, and comes in 250g packs of Spaghetti, Spirals and Rigatoni. Healtheries is constantly looking for ways to improve and expand the range of wheat and gluten-free products we

offer to consumers and has more innovations planned for later this year. Top tip for retailers looking to increase their allergy-friendly product range? Stock reputable brands with a good range of products. Consumers are increasingly looking for the crossed grain logo, which is their guarantee that products have been independently tested to FSANZ standards for no detectable gluten. Brand blocking within the category also makes it easier for shoppers to see the range available, which promotes cross selling and extra purchases as they seek out wheat and gluten-free products. Consumers are always looking for variety and new products.

NEW LOOKA PAST

MAy 2011 FMCG

NEW LOOKA PAST

MAy 2011 FMCG

cate go r y c h e c k

Spreading the goodness A wide range of choices in the Spreads, Jam and Honey categories is now available to the consumer. FMCG examines the latest trends and some of the new products that are making an impact.

he Sweet Spreads category has total value sales of $13.6 million and is growing at 2.9%*. Sweet spreads are spreads that fall outside the Jam/ Marmalade & Honey categories, says Deejay O’Dowd, trade marketing manager for Nutella distributor FNZ Brands. He adds: “Within Sweet Spreads, Nutella is the market leader with 45.1% value share, growing ahead of the market at 4.1%*. Nutella has more than twice the value share of its nearest competitor*, whilst continuing to be competitive in a category where private label products have made an impact.” Nutella comes in three different pack sizes: 220g jar, 400g jar and 750g jar to suit all consumers’ needs from ‘occasional’ usage right through to ‘more regular’ usage. In the coming months, there is some exciting news with Nutella launching a new portion-pack into the grocery channel, reveals O’Dowd. The Nutella portion-pack is a unique offer within the sweet

FMCG May 2011

spreads

THE BREAKDOWN Current MAT to 27 March 2011 spreads Total Spreads: $121.505m Value % Chg vs YA: 3.8 Total Jam: $28.682m Value % Chg vs YA: 6.8 Total Peanut Butter: $23.404m Value % Chg vs YA: 5.0 Total Honey: $29.792m Value % Chg vs YA: 1.0 Total Vegetable & Yeast Extracts: $17.499m Value % Chg vs YA: 2.6 Total Sweet Spreads: $13.588m Value % Chg vs YA: 2.9 Total Marmalade: $8.176m Value % Chg vs YA: 3.3 Total Savoury Spreads: $363,385 Value % Chg vs YA: 78.2 * ACNielsen New Zealand ScanTrack (Databank)

spreads category and is ideal for consumers who want to try Nutella, or who need a small, portable portion pack for breakfast on the go. O’Dowd says: “Nutella can be enjoyed as part of a balanced breakfast, including a glass of milk, a piece of fresh fruit and two slices of toast with Nutella. When eaten on high fibre bread, Nutella represents a similar nutritional profile to other spreads such as honey, jam and peanut butter. Nutella is also free of preservatives and artificial colours.” *Nielsen Scan Sales, Total Key Accounts, Value Sales Current MAT to 27/3/2011

Authentic recipes Barker’s of Geraldine produces both the Anathoth and Barker’s of Geraldine brands on a corner of the family farm in Geraldine, South Canterbury. Barker’s marketing manager Danielle Esplin told FMCG: “Both premium brands are experiencing good growth given tight market conditions. Growth has been driven by the

consistent high quality of product, a commitment to deliver on the promises of the brand as well as a desire to keep innovating by offering unique flavours. Anathoth is the number-one ranked premium jam brand and holds 16.5% value share, growing +5.8%. Barker’s is the number-two ranked premium jam holding 7.8% value share and growing +10.5% (Aztec Temple, MAT to 03/04/11).” Consumers are responding to traditional, home cookery values. Anathoth jam is still made to the authentic recipe of simply fruit and sugar, boiled until it sets. The result is an authentic, soft set jam, reminiscent of jam that is made at home in the kitchen. Both brands are staunch long-term supporters of local fruit growers and have a preference to use New Zealand fruit first. “We have voluntarily adopted country of origin labelling to ensure we inform customers where our fruit comes from,” says Esplin. “We are humbled by the weekly feedback from customers who want

to tell us how much they enjoy our products. It’s a thrill to know our customers think we are doing a great job and we strive to improve for those who think we can do better!” Both brands innovate in their own ways. In the last 12 months Anathoth has launched two new jam flavours; Cherry Berry (European sour cherries, NZ boysenberries and redcurrants) and Rhubarb and Red Berry (NZ rhubarb, strawberries and raspberries). Esplin says:“Both flavours are performing well with the Rhubarb flavour proving to be a favourite among New Zealanders. Barker’s continues with its premium products including unique flavours like Passionfruit Curd, which has proved to be a favourite not only in households but also among food writers who have featured it in many baking recipes. Morello Cherry Jam and Seedless Blackberry Jam are another May 2011 FMCG

cate go r y c h e c k

“We have voluntarily adopted country of origin labelling to ensure we inform customers where our fruit comes from.” Danielle Esplin, Barker’s marketing manager

two examples of developing products towards our customer needs.”

New management at IXL Coca-Cola Amatil (NZ) key customer manager Adam Bateman, told FMCG: “In New Zealand we currently offer the IXL brand of spreads, which delivers great taste for the whole family at a price that offers real value every day.” He explains: “Over the past nine months Coca-Cola Amatil (NZ) has taken over management of the IXL brand in New Zealand, along with Goulburn Valley, SPC and Ardmona. In this time, we have committed to learning the marketplace so that we can deliver a portfolio that will complement the growing dynamics of NZ and embed our food business in the market.” He adds:“IXL spreads have shown a great performance over the past year. IXL has grown 134% vs YA and now represents 1.5% value share of the total category in NZ Grocery (Aztec, MAT to 13/03/2011 vs YA).” Bateman says: “Over the past nine months we have focused on driving the key fundamentals of our new business to ensure that the transition 24

FMCG May 2011

was as seamless as possible. During this time we have completed a full market review and hope to launch some exciting new opportunities in the New Zealand market shortly.” The spreads category has become very robust. An array of choices is now available to the consumer ranging from value for money through to premium niche offers, which will continue to support the value growth of the category.

Dietex preserves Healtheries senior product manager James Ford told FMCG: “Healtheries have a unique range of Dietex preserves tailored specifically for those managing their blood sugar levels, their weight, and who don’t want to compromise on taste.” Dietex preserves are made with sorbitol – a sugar alcohol naturally found in food – which is 60% less sweet than sucrose, contains a third fewer calories than sugar, and does not contribute to dental decay or cavities. Sorbitol is slowly absorbed, therefore the rise in blood sugar levels and the insulin response associated with the intake of sugar is significantly reduced. Products sweetened

with sorbitol are ideal for those managing their blood sugar levels and calorie intake. “The Healtheries Dietex ranges are delicious fruity preserves – available in the best-selling Marmalade, Apricot and Strawberry, and are ideal on bread, scones, and as a filling for cakes,” says Ford.

From ‘hive to pot’ “Arataki, New Zealand’s numberone honey brand, leads the honey category with a 22%+ value share of a near $30 million* honey category,” says marketing manager, Genevieve Renall. She explains: “A thorough programme of investment above and below the line has ensured this has been another strong performing year for the Arataki brand, with value share growing almost two share points over the past 12 months.” Renall says: “Arataki Manuka Honey and Arataki Squeeze Me Honey remain the leading varieties in the portfolio. However the rising star in portfolio is the recently launched Arataki Honey UMF Manuka 10+. We are very excited about this new addition to our portfolio. ‘Health

spreads

honey’ is now a significant and growing segment of the market. “We are glad to be able offer consumers a UMF honey under a familiar honey brand, that they know can trust,” says Renall. “In addition to continued brand investment, the increased popularity of cooking shows on television and general consumer trends towards food DIY, have been key factors in

driving double digit growth in our Squeeze Me Honey this year. As we trend back towards preparing or assembling meals in the home, usage increases as consumers choose the delicious taste and natural sweetness of honey,” says Renall. The Arataki range of honeys includes five key honey types: Arataki Manuka Honey, Arataki Multi-Flora with Manuka Honey, Arataki Clover

Blend Honey, Arataki “Squeeze Me Honey” and the new Arataki UMF Manuka Honey. Renall says: “Arataki has a honey for every use, spanning pouring honey, health honey and more traditional spreading honey. As well as being the home to New Zealand’s favourite honey brand, Arataki is New Zealand’s leading beekeeping enterprise. The fourth generation

Laboratory certified UMF® 10+ Manuka Honey.

NOW AVAILABLE IN SUPERMARKETS NATIONWIDE

Arataki Honey, naturally. May 2011 FMCG

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family business started 66 years ago and is New Zealand’s largest fully integrated honey producer – direct from hive to pot.”

Winter tonic The New Zealand Honey Producers Co-operative was formed in 1982 for beekeepers to collectively market their honey. Marketing manager Brian Olorenshaw told FMCG: “Their main brands are Hollands Honey, which began in the 1950s when an entrepreneurial beekeeper by the name of Dick Holland successfully started creaming honey, 3 Bees (largest selling category sku; Aztec) and

Sweetmeadow (premium monofloral lines such as Manuka UMF).” Olorenshaw advises that alongside the popular Hollands creamed clover honey, the Co-operative has launched Hollands Lemon Honey – a blend of clover honey and natural lemon. “This is finding good support from customers as a convenient winter tonic drink – mixed with hot water – to soothe sore throats, coughs and colds,” he says.

Comvita New Zealand manuka has long been valued for its health-maintaining effects. In the early 1990s, manuka

honey was discovered to have unique anti-microbial properties, and it is now renowned for its antibacterial, anti-inflammatory and healing properties. Comvita’s chief technical officer Dr Ralf Schlothauer says Comvita is the world’s largest manufacturer of premium quality UMF Manuka Honey. Its honey is produced in New Zealand and verified by an independent testing laboratory. “UMF stands for ‘Unique Manuka Factor’, a measure of the unique type of antibacterial activity which is naturally present at varying levels in honey made from the nectar of the manuka bush (Leptospermum scoparium), native to New Zealand. Only

“Great taste the whole family will enjoy at a price that offers real value every-day.”

For product information contact: Adam Bateman Key Customer Manager – Food, Coca-Cola Amatil (N.Z.) Limited E. adam.bateman@ccamatil.com M. +64 (0)21 330 779

FMCG May 2011

Deliciously Jam-Packed!

some manuka honey has this special UMF activity,” says Schlothauer. The mark UMF is followed by a number that indicates the strength of the UMF activity in a batch of UMF manuka honey.The higher the UMF rating, the more potent the product. For example, a jar of UMF 18+ manuka honey has almost twice the antibacterial activity of UMF 10+ manuka honey. Schlothauer says the reason manuka honey is different to normal honey is because it’s packed with unique plant phenols to support your health. “Consumers are currently trading up in the honey category from regular and active varieties into UMF (Unique Manuka Factor) honey,” said a company spokesperson. Unlike non-UMF honey and active honey ranges Comvita UMF varieties have antibacterial properties which can be used to support your immune system and fight off sore throats.

Classic Kiwi spread “Kraft Vegemite is a classic Kiwi spread and is the leader of the Yeast Extracts category with 51.4% value share* and it is currently growing ahead of the category at 8.6%*,” says Kraft category development execu-

tive Michaella Davis. April 2011 saw the launch of an exciting addition to the yeast extracts category. Developed for growing children’s health trends, My First Vegemite is specially formulated for children (1 year +) and is enriched with Vitamin B6 and B12. “My First Vegemite has added iron and 50% less salt**. A smoother and softer texture appeals to younger palates with no artificial colours or flavours while delivering that unique Vegemite Flavour that Kiwis love,” says Davis. She adds: “Kraft Foods is bringing excitement and fresh news to the spreads category. In 2009 Vegemite Cheesybite was launched and has delivered over $1m to the yeast extracts category*. Kraft Foods is leading innovation, bringing incremental sales to the category with unique offerings.” Kraft Peanut Butter and Kraft Easy Cheese Spread are also popular spreads Kiwis have grown up with. “Kraft Peanut Butter’s point of difference is that it uses 100% quality Australian nuts. Kraft Cheese Spread was rebranded in 2010 to be more than a spread. A wider jar means more ways to use – dipping and dolloping on meals,” says Davis. *ACNielsen NZ Scan Track (VEXTRTKR) 2011

Our 100% homegrown stamp means 100% NZ fruit.

www.barkers.co.nz

** When compared to original Vegemite Spread

May 2011 FMCG

What’s Hot Mushrooms celebrate 2011 in style

YEAR OF

2011

C of ele ar M b r a t i n 4 0 Ye o m ea g d o w M u s hro

Call Customer Services 0800 687 467.

OOM HR

April 1 2011 marks the beginning of Year Of The Mushroom, a year celebrating one of Kiwis’ favourite vegetables. Meadow Mushrooms’ National Sales Manager, Yvonne Clyne, says demand for mushrooms is growing. “Last year each New Zealander ate an average of 2.7kg of fresh mushrooms, and mushrooms are now the third most popular vegetable purchased.” A Meadow Mushrooms advertising campaign will be launching in print and at point-of-sale, helping mushrooms get the attention they deserve. It features characters representing each of the M THE US varieties (white button, brown button and Portabello).

BEHIND EVERY GREAT WARRIOR THERE’S A GREAT PIE... New! Irvines® THE BEAST Pie is being launched on the 6th June to increase awareness and celebrate Irvines sponsorship of the Vodafone Warriors. THE BEAST Pie’s inbuilt tomato sauce provides the ultimate in convenience for New Zealanders favourite mince pie and features another New Zealand favourite, Wattie’s® Tomato Sauce. THE BEAST Pie will also be sold at Mt Smart Stadium from June, promoting trial of the new pie and driving demand in store.

i love pies an exciting new range for winter

What’s Hot

I LOVE PIES is a handmade range of large family pies based on classic Kiwi pie flavours with a gourmet twist. The product format is unique as the pastry is made from sour cream and only the best NZ ingredients are used, including fresh vegetables and herbs and high quality cuts of meat. Unlike most pies they contain only real ingredients and are free from preservatives, colourings and flavourings. I LOVE PIES has strong consumer appeal and a loyal customer base. It is a proven and established brand with over three years of sales within the gourmet food channel, showing excellent growth every year. Grow the chilled pie category within your store with this unique offering and support a home grown NZ innovation and brand. Stock this fantastic range in time for winter.

FMCG May 2011

For more information please contact Eye Level Marketing & Distribution on 09-820-5140 or at sales@eyelevelmarketing.co.nz

What’s Hot Mentos 3D Gum Innovation New Mentos Aqua Kiss 3D chewing gum is the first 3 layered stick gum to hit the New Zealand market. It is available in singles or multi-packs and comes in 3 mouthwatering flavours: Strawberry–Green Apple–Raspberry; Watermelon– Pineapple–Melon; & Triple Fresh Mint. Aqua Kiss 3D delivers unique innovation to the gum market which will help drive category growth.

Contact your Brandlines Representative or call 0508 3565 323.

Jeeny’s Belachan Finally a belachan shrimp paste in user friendly packaging! Jeeny’s has just launched 4 easy-to-use tablets of the famous Malaysian roasted belachan shrimp paste. The 80g packet comes in a shelf display tray holding 12 packets. The packaging is bright & colourful and extends the Jeeny’s range from the well known tamarind & palm sugar – all key pantry items for South East Asian cooking. For more information on Jeeny’s Products please contact: Tel 0800 10 33 05 Fax 0800 10 33 11 Email: nzenquiries@oriental.com.au Website: www.oriental.com.au

HEALTHERIES New Look Pasta

What’s Hot

More and more of your customers are looking for wheat and gluten free options with their food. Healtheries are launching a new look range of wheat and gluten free pastas, under the trusted Simple brand, endorsed by Coeliac NZ with the crossed grain logo. Now made in Italy, this great tasting authentic pasta still provides the safety and nutrition required by wheat and gluten free consumers, and comes in 250g packs of Spaghetti, Spirals and Rigatoni. For more information, talk to your local Vitaco salesperson.

May 2011 FMCG

What’s Hot REAL COFFEE made easy

New Robert Harris plunger bags make enjoying fresh coffee so easy and with no icky bits to clean up at the end, you’ll soon be using them everyday. Made using 100% Arabica roast and ground coffee, they have been specifically roasted and blended for optimum delivery of flavour. Consistent results with a measured amount, gives you real coffee without the fuss or worry of working out how to make the perfect coffee every time. Enjoy with friends, family or colleagues, at home, work or on weekends away. Perfect almost anywhere, anytime!

Quality product quality taste Oxford Pies are famous for their great tasting quality pies. Hand built in the Waikato since 1977. There are 3 tasty new flavours on the horizon, just in time for the cooler months. • Vege Delight – a tasty mix of Garden Vegetables in a creamy sauce with a touch of sage. • Thai Chicken – made with a red curry, not too hot, just right. • Curry Vegetable – lots of root vegetables with just the right amount of curry added. For more information contact Oxford Pies (07) 849-7516 or visit our website www.oxfordpies.co.nz

Visit robertharris.co.nz for more information.

Ingham Red Box – the ideal Winter Warmer

What’s Hot

With winter almost upon us, Ingham Red Box products are the ideal hearty winter meal option when convenience and quality are a must. Ingham Red Box filled chicken products, including Kiev, Cordon Bleu and new Duets, provide the convenience of heat and serve packed frozen products with the assurance of 100 per cent quality New Zealand chicken. The delicious hot fillings make them a quick and tasty winter warmer the whole family will enjoy.

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

FMCG May 2011

What’s Hot

Purex Care that makes a difference The Kiwi family may have changed but one thing hasn’t – caring begins at home. It connects us with our neighbours and supports our communities, making our country and the world a better place. To help create a caring home environment Purex has introduced a range of new products. New Purex Hypo-allergenic toilet tissue is white, unembossed, unscented and has no inks, dyes or perfumes - a combination of softness, thickness and strength that is gentle on your skin and kind to our environment. Purex also proudly supports the work of Allergy NZ to improve the lives of allergy sufferers. New Purex Décor Prints is a range of four contemporary designs and colours in one pack printed using water-soluble vegetable inks - a contemporary option for those wanting to match their modern home décors without compromise on quality or sacrifices to the environment.

What’s Hot

New Purex Mega-long 6’s is NZ’s longest roll with 500 sheets meaning you don’t have to change the roll as often. Using 21% less packaging than regular rolls and up to 12% less landfill it’s also better for the environment. Purex has been caring for Kiwi families and supporting local communities for over 50 years.

Brendon Lawry, Head of Consumer Sales NZ, Mobile: 021 720 292.

May 2011 FMCG

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The

good oil Cooking shows, ethnic restaurants and overseas travel experiences have broadened the horizons of many consumers. More and more New Zealanders are adding Mediterranean and Asian flavours to their recipe repertoire, which means that olive, avocado and sesame oils are gaining in popularity. Some oils also offer unique health benefits. FMCG looked at some of the new products and best-sellers in this category.

ceites Borges is a leading family owned Spanish olive oil producer dating back three generations, to 1896. The company exports olive oil to more than 60 countries. The Borges brand olive oil is a high quality Spanish olive oil which is proudly and accurately labelled with its country of origin. Borges is the leading brand in Spain’s Catalonia province and is well known across the whole country. James Crisp Ltd key account manager Debbie Wharfe, explains: “In New Zealand, Borges Olive Oil has consistently rated highly in the NZ Consumer Magazine Olive Oil Reviews in both 2006 and 2008. In the 2008 review Borges was rated very highly, ahead of all other imported olive oil brands. Borges offers exceptional value for money with a quality olive oil at a competitive price. “James Crisp has been representing Borges in New Zealand since 1988, and recent success shows Total Borges Olive Oil is experiencing value growth of +53.1% (for Current

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MAT to 27 March 2011, Nielsen).” The Borges range consists of an Extra Virgin Olive Oil with a maximum acidity of 0.5%, a Pure Olive Oil and an Extra Light Olive Oil, all of which are available in 500ml and 1 litre pack size. Spain is the largest volume producing country of olive oil so it is only natural that such volume share gains are possible by a Spanish brand – even Italian olive oil companies rely heavily on good quality Spanish oil in order to meet the volume demands and price for their customers. James Crisp is forecasting continued brand share growth across all banners and is focused on maintaining strong promotions at in-store level, along with growing brand awareness through other promotional and above-the-line activity.

Telegraph Hill Telegraph Hill has recently launched Lemon Spritzer, a combination of lemon-infused Extra Virgin Olive Oil and Balsamic Drizzle. Geoff Crawford, managing director

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Telegraph Hill, explains. “This new product was developed because our customers were using just two products to dress their salads: Telegraph Hill Extra Virgin Olive Oil and Telegraph Hill Balsamic Drizzle. We received feedback that it would be good to have them both in the same bottle, saving the expense of buying both at the same time. The lemon twist simply adds a third dimension citrus flavour to the final dish.” Crawford adds: “Every year is a new year for our Extra Virgin Olive Oil. It’s remarkable how the growing conditions will affect the flavour of the oil. Our 2010 Barnea /

Manzanillo pressing was classed as a delicate oil and it is absolutely delicious with a strong fruity aroma, with noted flavours of avocado, honey, aniseed, and dry hay. It has a creamy nutty texture and a lingering subtle peppery finish.” Generally Telegraph Hill produces a medium class oil, which means it has similar flavour characteristics with medium pungency and peppery finish. Pungency means the mouth really ‘feels’ the oil. The climate conditions this year are pointing to a return to a medium pungency oil from the Telegraph Hill grove. Harvest will be in June with

release of the new oil in August. Crawford says: “Palate education continues as a key marketing technique for specialist producers of high quality Extra Virgin Olive Oil. From personal experience, I note that on the regular group tours we do at the Olivery when we do a simple palate education taste of extra virgin olive oil.We do this by tasting a good quality oil followed by a low quality oil. There is a distinct trend of increasing numbers of people recognising the quality difference.They then understand and are willing to pay for this quality, which translates into increased sales for Telegraph Hill.”

THE BREAKDOWN Current MAT to 27 March 2011 Solid Fats & Liquid Cooking Oils Total Solid Fats & Liquid Cooking Oils: $80.202m Value % Chg vs YA: -0.5 Total Olive Oil: $33.624m Value % Chg vs YA: -0.7 Total Canola Oil: $13.541m Value % Chg vs YA: -1.6 Total Cooking/Salad Oil: $6.936m Value % Chg vs YA: -7.5 Total Rice Bran Oil: $8.612m Value % Chg vs YA: 6.4 Total Soya Oil: $3.887m Value % Chg vs YA: -0.2 Total Sprays: $3.680m Value % Chg vs YA: 2.3 Total Solid: $2.400m Value % Chg vs YA: -0.6 Total Other Types Oil: $1.817m Value % Chg vs YA: 7.2

Total Sunflower Oil: $1.069m Value % Chg vs YA: -8.7 Total Grapeseed Oil: $1.983m Value % Chg vs YA: -4.4 Total Sesame Oil: $788,658 Value % Chg vs YA: 12.2 Total Peanut Oil: $563,349 Value % Chg vs YA: -1.7 Total Avocado Oil: $1.066m Value % Chg vs YA: 0.9 Total Infused Oil: $84,155 Value % Chg vs YA: -35.5 Total Cereal & Fruit Oil: $101,833 Value % Chg vs YA: N/A Total Corn/Maize Oil: $20,440 Value % Chg vs YA: -15.7 Total Safflower Oil: $15,966 Value % Chg vs YA: -54.4 Total Rice Oil: $13,217 Value % Chg vs YA: -16.3

Butter & Margarine Total Butter & Margarine: $216.951m Value % Chg vs YA 13.8 Total Margarine (excl Olive): $75.249m Value % Chg vs YA 1.6 Total Butter: $97.523m Value % Chg vs YA 32.8 Total Olive Based Spreads: $25.907m Value % Chg vs YA -1.9 Total Butter & Margarine Blends: $17.251m Value % Chg vs YA 9.5 Total Flavoured Butter: $537,918 Value % Chg vs YA 5.2 Total Flavoured Margarine: $482,724 Value % Chg vs YA 12.8 Total Bakery Margarine: $166 Value % Chg vs YA -19.5

* ACNielsen New Zealand ScanTrack (Databank)

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Paul Holmes’ offerings NZ Premium Foods supplies the award-winning Paul Holmes Extra Virgin Olive Oil, which is rich in colour, exquisite in taste, bursting with freshness and full of flavour, capturing the essence of a premium extra virgin olive oil. Paul Holmes – New Zealand’s iconic radio and television broadcaster – grew up in Hawkes Bay, where he acquired Mana Lodge and planted the olive grove of over 3000 trees of Tuscan varieties. His olive oil is now gracing tables around the world. Leccino has hints of apples, pears and creamed spinach with a peppery finish, balanced and harmonious. Frantoio, the fruity oil, has a hint of oranges, ripe apples and tomatoes, finishing with pears. Paul Holmes Extra Virgin Olive Oil (EVOO) is a smooth, nutritious, well balanced and complex oil, ideal for all cooking needs. EVOO is also filled with antioxidants, vitamins and nutrients. Paul Holmes Extra Virgin Olive Oil is tested and meets the Extra Virgin Olive Oil standards. Paul Holmes has also just released a range of new Foodies Gourmet Vinegars.

Matapiro Estate Matapiro’s supermarket brand is “100% Kiwi extra virgin olive oil”, which is available at both Foodstuffs and Progressive stores. All olives used 34

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in the production of the oil are from trees grown at Matapiro Estate in the Hawkes Bay. The product range consists of 250ml and 500ml pack sizes plus a 200gm aerosol. Matapiro Olives director John Arthur, told FMCG: “The aerosol is the only New Zealand extra virgin olive oil in a spray can – this product was released on the market last year and has been very successful to date.” He adds: “We will potentially launch some specialised blends prior to the new selling season, which will provide a point of difference in the category. “We are certainly finding that consumers are looking for quality at an affordable price point. Our ‘100% Kiwi’ fills the gap where consumers are looking at switching from imported to New Zealand produced extra virgin olive oil.” Matapiro supports the draft Australia/New Zealand olive oil standard. “The adoption of that draft would remove consumer confusion about what the differences are between ‘Extra Virgin Olive Oil’,‘Virgin Olive Oil’ and ‘Light Olive Oil’,” explains Arthur. He says: “Matapiro prides itself on providing a consistently high quality product and believes that by offering ‘100% Kiwi Extra Virgin Olive Oil’ at an affordable price consumers will benefit.”

Sesame oil Do you know how to pick the right sesame oil for a specific recipe? Asian food specialist Oriental Merchant sells three brands of sesame oil: Yeos, Ongs and Hengshun. Yeos is well known all around the world for its famous dark roasted sesame oil. Even before you open the sealed cap, you can smell the aroma of the roasted sesame seeds. A little goes a long way; this is the oil you would use to drizzle on top of your dish, not the oil you would use at the bottom of the wok. Ongs is from Singapore – a lot lighter in colour and intensity than Yeos and offers excellent value for money. Ongs is ideal for those who want just a hint of sesame to add complexity and depth to the dish. Hengshun is well known to the Chinese community. Hengshun is a leading oil and vinegar brand produced just outside Shanghai.The oil is traditionally Chinese, light, golden and clear. “Due to the shortage of good quality GE-free sesame seeds Yeos and Ongs have had problems with keeping up with the world demand for their oil and in the last 12 months we have had problems getting consistent supply from these companies. “However, the wait has been worth it, and supplies are now back up to normal,” says Oriental Merchant NZ manager Chris Hutton. Acton International Marketing is

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another supplier of sesame oil. Acton’s Lee Kum Kee Pure Sesame Oil (207ml) is available in supermarkets nationwide and continues to experience strong sales, says marketing manager Joanne Neville.

Avocado oil Olivado Extra Virgin Avocado Oil is made from the pulp of avocados. The process was developed by Olivado in New Zealand in 2000. The stone and skin is removed, the pulp crushed without applying heat, and a low heat process is used to gently remove approximately 80% of the oil from the pulp. The skin, stones and waste water are used as a fertiliser, and the remaining pulp as nutrient-rich cattle food. Olivado, New Zealand’s original avocado oil company, now supplies an extensive range of quality oils worldwide. Olivado is constantly sourcing new oils to expand its range. Olivado business development manager Pip Llewellyn, told FMCG: “New to Olivado is the ‘EV DOP Olive Oil’. Sourced from Spain it has more polyphenols than any other olive oil.This oil will be launched in our supermarkets this year. “Olivado has seen a 60% increase in New Zealand supermarket sales over the past 12 months according to Nielsen statistics.” Olivado’s Macadamia Nut Oil, available in Progressive stores and also in selected New World stores, is a delicate,

buttery oil that is great for baking. “We have seen a resurgence in the popularity of home baking thanks to a series of baking inspired television shows. This has been reflected in increased Olivado sales and better understanding of the uses for this delicious oil,” says Llewellyn. She adds: “Olivado’s cornerstone Extra Virgin Avocado Oil processed with New Zealand avocados and available nationwide continues to increase sales in a competitive supermarket environment. Also in the range is Olive Plus Oil [a combination of EV Avocado oil, EV Olive oil and sunflower oil], Avocado Zest Oil [Extra Virgin Cold Pressing of Fresh Lemons and Ripe Avocados], and Omega Plus Oil [perfectly balanced blend of Extra Virgin Avocado, olive and flaxseed oils, carefully selected and blended to produce an optimal combination of Omega 9, 6, & 3 fatty acids.]” Extra Virgin Avocado oil enhances the flavours of other foods. It has a rich smooth taste that combines well with spices and herbs and does not overpower delicate foods like fish. The resulting paste when mixed with spices like turmeric is rich, absorbed and integrated. It’s an oil that children in the family will like as well as adults. Extra Virgin Avocado Oil can be used for dipping as well as high heat cooking (to 490°F). For deep frying it will still retain its green colour and structure after repeated uses. Extra virgin

avocado oil lightly coats the ingredient and does not break down with heat, so much less is needed than with other oils. It gives a light crispy coating to food.

Cold pressed oils for good health Healtheries’ senior product manager James Ford says oils play a special role in a balanced healthy diet. Monounsaturated oils help to raise levels of ‘good’ cholesterol in the body. This is the kind that takes fatty deposits away from the arteries. Polyunsaturated oils contain essential fatty acids, such as omega 3, 6, 9, which have beneficial effects on cardiovascular and immune systems, joint health, hair, skin, nails, and women’s hormonal balance. Ford says:“Healtheries have a range of quality oils to suit your cooking and health needs. All our oils are cold pressed naturally (no heat or chemical additives), and extracted by a simple crushing and filtering process which retains the vital nutrients and essential fatty acids contained in the oil.” Love almonds? Then you’ll enjoy using Healtheries Cold Pressed Almond Oil for the nutty tang it will give to salad and mayonnaise dressings and savoury baking. Rich in monounsaturated fats, it is ideal for those managing their cholesterol levels. Almond oil is also a beneficial massage oil for chapped roughened skin or cradle cap in infants, and has May 2011 FMCG

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mild laxative properties. Are you a “one potion fixes all” kind of person? If you are, you’ll love Healtheries Cold Pressed LSA Oil, a blend of linseed, sunflower seed and almond oils rich in omega 3, 6 and 9. With the complete family of omegas put to work, you are helping to support your heart and immune function, and keep hair, nails and skin nourished! With its mellow buttery-nut flavour, simply take it by the spoonful or add to delicious smoothies and yoghurts. Fords says: “Heard bad stories about the taste of cod liver oil? Forget it with this creamy tasting cold pressed version made from 100% cod livers: Healtheries Cold Pressed Cod Liver Oil. Cod liver oil’s nutritional value is well known. One teaspoon per day provides 2570 IU of vitamin A and 197 IU of vitamin D, ideal for helping support your respiratory and immune systems through autumn and winter. For wounds and skin abrasions, apply externally for quick healing results. “Healtheries Cold Pressed Flaxseed Oil contains alpha-linolenic acid, a type of omega 3 oil. This is essential for the production of anti-inflammatory hormones, which assist with arthritis, heart disease, cholesterol levels, and blood pressure. Flaxseed oil is also beneficial for hair, skin, and nails.”

Alfa One Auckland-based Hansells Food Group supplies Alfa One Rice Bran Oil and Alfa One Rice Bran Oil spread (standard and lite). “Alfa One 1L is the number one 36

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selling oil in the category*,” says senior brand manager Susan Harvey. She adds: “Alfa One Oil is still experiencing strong growth, growing at 13.3%* while the category is flat.” *Aztec data to 20/3/11

Spreads “The NZ spreads category has been in strong value growth for the past 12 months, +13.2% (MAT to 27/02/11),” says Danielle Wilkes, senior brand manager, Goodman Fielder Home Ingredients. She adds: “This has been driven by butter price increases and a mix of higher value branded sales. Obviously growth derived from price is not sustainable, future growth must come from brands that offer additional benefits to justify higher investment. The two segments responsible for the significant value growth over the past 12 months are (1) Block which has delivered the growth via price (price per unit has increased by 37.1% MAT to 27/02/11); and (2) Cholesterol Lowering where growth has been achieved by adding value into the brands to increase sales at this higher end of the market (Cholesterol Lowering volume has increased by 4.7% MAT to 27/02/11).” Goodman Fielder has a strong portfolio of spreading brands in NZ including MeadowLea, Olivani, Gold’n Canola, Logicol, Sunrise and Tararua. “Combined they account for 27.1% of category sales (MAT to 27/02/11),” says Wilkes. Over the past 12 months the company has recognised that clear brand

benefits are crucial to delivering value growth for retailers. “Logicol, for example, is Goodman Fielder’s Cholesterol Lowering spread. It is just as effective at lowering cholesterol absorption as the market leader in this segment but is positioned at a more affordable entry-level price to encourage trial and drive repeat purchases,” explains Wilkes. She adds: “The strategy is clearly driving the results behind the trade-up in this segment – Logicol is outgrowing Flora ProActiv at 11.9% vs 8% respectively by capturing volume from lower priced segments (Aztec MAT to 27/02/11).” Goodman Fielder is also investing in its everyday family spread brand, MeadowLea. “In the coming months you will see the brand undergo formulation improvements and brighter, fresher, packaging communicating the benefits of its core ingredient – natural plant seed oils which offer 65% less saturated fat than butter amongst other benefits,” reveals Wilkes. The intent is to add value back into the number one everyday family spread. Wilkes says: “Other brands within the Goodman Fielder spreads portfolio remain strong for different reasons – Olivani (market leader at 74.8% share of the Olive Oil spreads segment Aztec MAT to 27/02/11) maintains its dominance and growth despite its premium price points. The strength, driven by its natural olive oil benefits, has even allowed the brand to launch into the olive oil category.”

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Synchronised thinking The pressure for government agencies to work together is acute, says Dr Peter Stevens. It’s not often that people give governments credit for ‘synchronised thinking’. But I’m going to throw a few bouquets in the direction of the policy makers in this column. It seems that in many places around the world, and in NZ too, bureaucrats are poised to take steps that might make life easier for cross border trade, and for GS1 members in particular. In my last column I wrote on work by APEC governments to take a step change in border control (customs, phytosanitary) processes. To recap briefly, APEC is looking to utilise the EPCIS suite of GS1 standards to gain better visibility of shipments and exporters/importers in advance of goods hitting the border. It is planned that this will expedite shipments of known products from known parties and focus its inspection activity on products and parties where there is no visibility. I’ve now become aware of a number of other initiatives where different agencies are exploring or looking to adopt a common approach based on common GS1 standards for the benefits of governments and traders: •TheWorld Customs Organisation has an active programme of co-operation with GS1 globally to adopt GS1 standards as a means of compliance with border processing activities. GS1 identifiers for products and consignments are built into the WCO Data Model v3.0 – this is the version that is going to be supported by the New Zealand Government’s new Customs system, which is in the process of being built (replacing the aged CUSMOD that many exporters and importers will be familiar with). • In the US a group of agencies led by the US Department of Agriculture (USDA) & the US Food & Drug Administration (FDA) and the Environmental Protection Agency (EPA) under a programme called PIC (Product Information Committee) have been working to streamline processes around the 500,000 shipments of toys alone that hit the US border. The PIC has decided to use two key GS1 standards widely supported globally to gain visibility of products and traders before goods hit the border (interestingly, the presentation delivered by the USDA to the GS1 Global Forum was entitled “Can GS1 Standards Make Government Smarter?”!): – The US is planning to ask exporters to the US to classify their products using the GS1 Global Product Classification (GPC) code.This allows a good to be quite finely classified so that border protection agencies can assess whether goods are subject to tariff or are high risk for biosecurity

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

incursion. For example, flowers are always inspected regardless of origin, but many dry packaged goods may be allowed to proceed through the ‘green lane’. – The US is also planning to draw data down out of the GS1 Global Data Synchronisation Network (GDSN) if the product from the exporter is loaded. This is really helpful, as the GDSN now has more than six million products loaded in it internationally by GS1 members. Locally – known as GS1net – the GDSN is used as a catalogue for traders such as Foodstuffs, Mitre 10, Progressive Enterprises, Warehouse Stationery and the rural traders such as CRT, RD1 and PGG Wrightson. The US government signalling that it will use a standard interface to pull information prior to receipt at the border will be a big win. • In the fresh product export business, NZ exporters must comply with GlobalGAP (or EuropeGAP) standards for traceability. GlobalGAP standards are recognised as being compliant with many importing country’s phytosanitary regulations. What many exporters do not realise is that GlobalGAP standards use GS1 standards, especially the Global Location Number (GLN). Certainly the above examples indicate that the landscape of border security is changing. In the past many traders just treated border processes as a necessary evil. They meekly complied with separate, but overlapping, requirements and processes for agriculture and customs agencies. But no more. The pressure for government agencies to work together to deliver a ‘Single Trade Window’ is acute and I’m pleased to see signs that these agencies are, in turn, looking to the trade sector to see whether efficiencies can be delivered in their activities from using GS1 standards already heavily in use.

May 2011 FMCG

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Fast relief for

common ailments Many consumers like to replenish their ‘first aid kit’ at their local supermarket. Over-the-counter (OTC) self-medication products are a convenient solution for treating many ailments, including headaches, colds, sleeping problems, back ache and arthritic pains. FMCG looks at new trends and some best-selling products in this significant category.

BOS Healthcare brand executive Maria De Guzman told FMCG: “In New Zealand approximately one in six people over 15 years of age suffer from some form of arthritis – one in every three people over the age of 45 years! “Osteoarthritis (OA) is the most common form. Almost half of all people over the age of 60 and virtually all over the age of 80 will have osteoarthritis. Fifty-three percent of adult liniment purchasers use liniment for aching joints, 33% of liniment usage is for existing joint problems.” OA is caused by the breakdown and eventual loss of the cartilage which is a protein substance that serves as a “cushion” between the bones of the joints. When bone surfaces become less well protected by

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cartilage, bone may be exposed and damaged, becoming irritated and inflamed causing joint pain and swelling. OA commonly affects the hands and the large weight-bearing joints, such as the hips, knees and spine. The main symptoms are pain and stiffness, swelling and bone growths called nodes (often in finger joints).” Glucosamine and chondroitin are components of normal cartilage. In the body, they are the building blocks for cartilage and appear to stimulate the body to make more cartilage. From the makers of Anti-Flamme comes new Anti-Flamme Joints – a unique combination of glucosamine, chondroitin and green lipped mussel to support joint mobility and flexibility. It is formulated specifically to target joint immobility and stiffness. Anti-Flamme Joints is a unique combination of three key extracts:

patent medi ci n es THE BREAKDOWN Current MAT to 27 March 2011

1) glucosamine (10%) used for many years in treatments for osteoarthritis, it is well known to promote the formation and repair of cartilage 2) chondroitin (often used in conjunction with glucosamine), promotes water retention and elasticity in cartilage, and further inhibits enzymes that work to break down the cartilage 3) green lipped mussel extract relieves arthritic symptoms and aids in the regeneration of arthritic and injured joints by inhibiting the inflammation. “Plus to provide a localised warming effect and for their natural anti-inflammatory ability, we’ve also added ginger oil and zedoary oil,” says De Guzman. Anti-Flamme Joints has been specifically designed to be used every day. It has a light pleasant fragrance,

Total Patent Medicines & Remedies: $66.077m Value % Chg vs YA 5.7 Total Oral Analgesics: $30.939m Value % Chg vs YA 0.3 Total First Aid: $9.065m Value % Chg vs YA 7.3 Total Antacid & Stomach Remedies: $5.813m Value % Chg vs YA 4.4 Total Personal Antiseptics: $2.172m Value % Chg vs YA 24.9 Total Insect Repellants: $2.286m Value % Chg vs YA 21.1 Total Antiseptic Liquids: $2.132m Value % Chg vs YA -3.1 Total Laxatives: $4.401m Value % Chg vs YA 15.1 Total Liniments: $3.488m Value % Chg vs YA 17.5 Total Eye Medications: $874,458 Value % Chg vs YA 1.5 Total Cell Salts: $237,324 Value % Chg vs YA 2.3 Total Foot Care: $887,086 Value % Chg vs YA 14.0

Total Smoking Cessation: $1.195m Value % Chg vs YA 12.3 Total Anti Itch/Emolients & Protectives: $425,148 Value % Chg vs YA 11.5 Total Mouth & Gum Preparations: $510,732 Value % Chg vs YA 2.5 Total Anti Viral Preparations: $909,571 Value % Chg vs YA 33.2 Total Topical Anti Parasitics: $490,122 Value % Chg vs YA -1.0 Total Antihistamines: $161,404 Value % Chg vs YA 16,849.9 Total Electrolyte Replacement: $54,262 Value % Chg vs YA 47.0 Total Ear Preparations: $26,600 Value % Chg vs YA 141.1 Total Topical Vein Treatments: $8792 Value % Chg vs YA 51.6 Total Contact Lens Care: $211 Value % Chg vs YA -34.5 Total Central Nervous System Meds: $508 Value % Chg vs YA -27.5 Total Anti Diarrhoeals: $319 Value % Chg vs YA -9.8

* ACNielsen New Zealand ScanTrack (Databank)

an easily absorbed crème and natural ingredients to allow for continued application on the skin. “For sufferers of stiff joints, AntiFlamme Joints offers a more natural way to help manage joint problems,” she says.

Treating coughs and colds Reckitt Benkiser assistant brand manager Sam Guernier, says: “The Total Cough Cold Treatment category in Grocery is worth $29.83 million. Reckitt Benckiser is the market leader of the Total Cough

Cold Treatment category with 47.2% value share led by the category’s top two brands Lemsip and Strepsils.” He explains: “The Total Cough Cold Treatment category consists of four segments: • Sore Throat $12.7m – 42.6% share • Cold & Flu $9.59m – 32.1% share • Cough & Chest Congestion $4.83m – 16.2% share • Decongestants $2.7m – 9.1% share. "The Sore Throat segment is the primary category driver at present – delivering 6.5% growth vs YA ($780,000).” May 2011 FMCG

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Reckitt Benckiser supplies three of the biggest brands in the category – Strepsils, Lemsip & Nurofen. Guernier comments: “Strepsils is the market leader in the Sore Throat segment with 55.7% share. Strepsils are medicated lozenges, unlike some throat lozenges or lollies available in supermarkets. Strepsils contain an effective combination of two antibacterial agents which help kill the bacteria which can cause sore throats and mouth infections. Strepsils is a trusted brand and consumers’ favourite choice when it comes to sore throats (Strepsils H&L 36s and 16s are topranked skus in segment with combined 17% value share.)” Guernier says: “Lemsip is a trusted brand and market leader of the Cold & Flu segment (63.1% share). Traditionally consumers see Lemsip as a comforting lemon hot drink – Lemsip also leads the Cold & Flu segment with a range of hot drinks and capsules. Lemsip has a complete range of products which provide relief from all major cold & flu symptoms – blocked or runny nose, fever, headache, body aches and pains, cough and sore throat. Each year Lemsip adds to its range with new innovation – and 2011 is no exception.” Nurofen is a well know brand in 40

FMCG May 2011

the Analgesics category. It debuted in the Cold & Flu segment in 2010 with Nurofen Cold & Flu PE Tablets. The past 12 months have seen the launch of Lemsip Max All in One Capsules, Lemsip Max Good Night Hot Drinks and Nurofen Cold & Flu PE Tablets. Strepsils have also had a number of lines upgraded to packs of 36s to encourage consumers to trade up in preparation for a sore throat, which can come on unexpectedly. Guernier comments:“Lemsip Max Good Night Hot Drinks are ranked 4th in the Hot Drinks sub segment with 9.8% share of Cold & Flu, Lemsip Max All in One Capsules have 7.3% share within capsules sub segment, while Nurofen Cold & Flu PE Tablets have taken 2nd place with 14.4% share in their first year. “Innovation is the key to driving category growth. 2011 is no exception with the introduction of some exciting new products from Strepsils and Lemsip,” reveals Guernier. He says:“Strepsils Warm is an addition to the successful Strepsils range. Strepsils Warm has a gentle, warming sensation for a sore throat brought on by the unique flavour combination of warm ginger spice, fruity plum and soothing cream. And like other Strepsils products they contain

an effective combination of two antibacterial agents which help kill the bacteria that cause throat pain, providing fast relief. The Strepsils Warm launch is supported by media (TVC – $1.3m ratecard for Strepsils brand with standalone TVC for Strepsils Warm), advertorials and in-store support (displays and consumer education).” And consumers may notice a change in Strepsils packaging. The focus is now on the benefit rather than the flavour to ensure that consumers can choose the best product for their sore throat symptoms. After all, sore throats can range from a scratchy tickle which needs the old favourite Soothing Honey & Lemon, to an inflamed raw sore throat which requires the extra benefit of an anaesthetic to numb the throat – as with new Strepsils Numbing. Guernier says: “Lemsip has an exciting new innovation for the upcoming winter season. New Lemsip Lemon Max Tablets is the first Lemsip product that lets the consumer choose how to use it – the tablets can either be swallowed whole, or dissolved into a mug of hot water for a comforting, soothing hot drink. They are perfect for any consumer – and can be taken anywhere, and at any time. The active ingredi-

patent medi ci n es

ents get to work fast on major cold and flu symptoms – aches and pains, blocked or runny nose, fever and sore throats. The Lemsip Max Lemon Tablets launch is also supported by media (TVC – $1.3m ratecard for Lemsip brand with standalone TVC for Lemsip Max Lemon Tablets), advertorials and huge in-store support (displays and consumer education).” * All figures from Nielsen (TSM, MAT 27/03/11) unless otherwise specified.

Real Honey Lozenges Airborne Antibacterial Honey Lozenges are made from Manuka Active AAH honey. They are high in antibacterial activity, antioxidants and prebiotic oligosaccharides. Airborne Antibacterial Honey Lozenges are effective at soothing sore throats, coughs and colds. A fantastic alternative to artificial lozenges. “These are the only lozenges that retain the goodness and health properties of natural Manuka honey,” says John M Smart, sales & marketing manager Airborne Honey. He adds that this product is: • The only lozenge that is made of 100% honey. • Manuka honey instead of sugar, flash dried instead of being boiled, retaining the natural healthy properties of Manuka honey.

He says the company is seeing strong sales growth with very high customer repeat purchases. There are four choices in the range: • Manuka Honey – with all the goodness of Manuka Honey. • Manuka Honey and Lemon – natural honey with the benefits of lemon and a tangy flavour. • Manuka Honey and Black Currant – natural honey and the antioxidants and vitamin C of black currants. • Manuka Honey and Cherry – natural honey with the calming and soothing properties of sweet cherry.

First Aid needs Elastoplast has a wide range of popular plasters and dressings available not just in pharmacies, but also in supermarkets. “The success of this range within supermarkets is evident, with the brand contributing over 60% of the $620,000 growth* in the First Aid and Bandages category over the last year,” says Nicola Black, shopper and customer marketing manager for Elastoplast. She adds: “Wash-proof and clear plasters remain the #1 segment in the category, although growth in the category is coming from Fabric plasters, the #2 segment – Elastoplast fabric plasters are growing at +32%*!” She explains: “Consumers are not

only purchasing more fabric plasters, but also trading up to products with added benefits for their first-aid needs. Over the last year we have focused on increasing the distribution of both our fabric plasters, and our unique skus that have added benefits for the consumer, given that consumers are now looking for more than just a plastic plaster.These Elastoplast products have contributed to the successful value growth to both the category and the Elastoplast brand.” Black adds: “Elastoplast’s most popular product with added benefits is the hypoallergenic latex-free Sensitive Dressing strip, which is growing by +29%*. Also growing strongly is the Elastoplast Kitchen Kit, a combined fabric and plastic plaster multi-pack unique within the grocery channel, which has almost doubled in sales over the past year. “We are very excited to have just launched our Disney Princess Plasters into stores during March.We know that kids love plasters which feature their favourite characters so small misfortunes can be quickly forgotten! These lines complement a diverse range of successful Elastoplast products that together contribute over $2m every year to the supermarket channel.” *Source Nielsen Scan MAT to 27/03/11. May 2011 FMCG

n a rgo n

Welcome changes New legislation should eliminate most of the major frustrations employers had with the previous employment laws. Trina Snow, executive director, NARGON.

A suite of changes to the Holidays Act and the Employment Relations Act came into force on 1 April 2011. Those changes were promised in the National Party’s 2008 election manifesto and have been welcomed by most business groups, including NARGON. After working well for smaller businesses, the 90-day trial period for new employees will now be available to all workplaces. The Minister of Labour, Kate Wilkinson, told NARGON that “this policy is all about giving businesses the confidence to take on staff and will be particularly beneficial for the supermarket and retail grocery sector. A lot of young people look for work in this industry, often for their first job, and the 90-day trial period will open more doors for them to prove themselves.” NARGON has consistently supported the trial period being available for large supermarkets and congratulates the Government on expanding the provision. Much of the retail grocery sector is a seven-day-aweek industry. This meant that the previous confusion and difficulty around calculating relevant daily pay for public holidays, alternative holiday and sick leave was particularly significant. The new legislation introduces an ‘Average Daily Pay’ calculation, which makes the process simpler and fairer. The rules around transferring public holidays have also been clarified, with employers given the final say if no reasonable agreement can be reached. NARGON is pleased the Government has listened to businesses and made these sensible changes. From the start of April, employees will be able to request that up to one week of their annual holidays be paid out. Only the employee can make this request. It cannot be a condition of the employment agreement. Stores need to be sure any agreement to cash up a week is clearly noted in the employee’s holiday and leave record.

FMCG May 2011

Under the new law, union representatives will now require an employer’s consent before entering a workplace. In turn, employers must respond to the request as soon as possible (no more than two working days) and consent cannot be unreasonably denied. The new Act also clarifies that employers may communicate directly with their employees during bargaining for a collective employment agreement. Previously, this was not permissible which made communications difficult. One of the changes which received a lot of media attention was the new power for employers to request “proof of sickness” (a doctor’s note) from an employee within the first three days of sick leave. In fact, there are several safeguards on this ability including the employer being obliged to meet all reasonable expenses incurred getting the proof. NARGON does not expect this provision to be used very often but it will be useful in the rare cases where sick leave is being abused. Finally, there are two important changes to the rules around dismissals and grievances. The test of justification for all grievances (including dismissals) has been changed from what a fair and reasonable employer would have done, to what a fair and reasonable employer could have done, in the circumstances. This change effectively recognises that there is always a range of fair and reasonable responses in any situation. NARGON considers this is a sensible move. The new rules also mean a dismissal cannot be overturned solely because of minor procedural defects. This will be welcomed by employers who felt the previous system put more weight on procedure than the facts. In a related move, the Employment Relations Authority will now have the power to dismiss frivolous and vexatious proceedings, and make an order for costs against the offending party. Most employers, including NARGON, have reported a rise in these types of cases in recent years and the Government’s swift and effective response is welcome. Overall, the National-led Government has completed virtually every single one of the employment and holiday law reforms set out in their election manifesto. On balance, NARGON considers the changes will be strongly beneficial to the retail grocery sector and to business as a whole. We await with some interest the unveiling of all parties’ 2011 election policies.

g rocer y busi n ess SCA Hygiene Australasia appoints new president Leading hygiene and paper products manufacturer SCA Hygiene Australasia has announced the appointment of its new president, Peter Diplaris. Diplaris is Australian and joins SCA from Nippon Paper Group where he has been the group general manager of its Australian office business. Prior to working in the paper industry, Diplaris held a number of senior sales roles with National Foods, including two years as general manager, sales Australia and New Zealand for the company’s Milk and Dairy Foods Divisions. Earlier in his career Peter Diplaris also held marketing and sales management roles with ACNielsen Australia, Nestle Dairy and Yellow Pages Group. Ulf Soderstrom, president of SCA Asia Pacific, said the new appointment signals an exciting new chapter for the business. “We are excited to welcome Peter to SCA and we believe his knowledge of FMCG, the paper industry and manufacturing

make him an excellent person to lead our business into the future,” Soderstrom said. Diplaris takes over leadership of SCA Hygiene Australasia in mid-May, replacing Paul Thompson, who left the business in January. Peter Diplaris. SCA Hygiene Australasia manufactures and markets a number of brands including Sorbent, Purex, Handee, Deeko, Hygenex, Tork, Treasures, Libra, TENA and Orchid. SCA Hygiene Australasia has facilities in Australia, New Zealand and Fiji and employs approximately 1400 people. l

New solution for ongoing staff training Kiwi software development company Intuto is a market leader in creating e-learning software specifically for the New Zealand market. Through the New Zealand Food and Grocery Council (FGC) Intuto provides a health and safety induction solution for major retailers such as Progressive Enterprises, Foodstuffs and The Warehouse. Richard Warren, ceo of Intuto, says e-learning is becoming more popular in the FMCG industry as businesses see it as a viable way to train multiple staff quickly, in a range of key areas, while delivering bottom line savings at the same time. “The FMCG sector requires its people to be trained in specific areas such as food hygiene and preparation, uniform regulations and other job-specific requirements. “The sheer number of recruits and the geographic spread of these people can mean workshop training sessions are no longer viable, not to mention cost prohibitive,” says Warren. The FGC is currently using Intuto’s programmes to provide a supermarket induction programme to meet industry standards in Food Handling and Health and Safety with great success. The ‘Safe In-Store Pass’ programme ensures all staff are educated in Health and Safety (H&S) and to date over 10,000 grocery workers have passed the online course and assessment. “Not only has the Safe In-Store Pass made the induction process easier for staff but it is estimated the system has saved the industry upwards of $2 million,” says Warren. Intuto recognises that no two organisations’ requirements are ever the same and, as such, works to tailor a programme unique to each client whether it is a supermarket with multiple sites across the country or an individual food retailer.

“More and more New Zealand businesses are realising the benefits that e-learning provides and while there is always going to be a need for some face-to-face training, I think the training of the future really does lie online,” concludes Warren. With Safe In-Store Pass, employees undertake an online course, which takes approximately one hour to complete and is followed by a multi-choice online assessment to ensure understanding. This is compared to the several hour face-to-face workshop session that was the previously available offering. There are two components to the training – standard H&S and Food Handling. Food Handling is an additional online course, accessed through the same system, which can be purchased as an add-on for those employees involved in food demonstrations in a retail environment. In order to receive their Safe In-Store Pass employees are required to gain over 90% in the online assessment, which is tracked against their record of learning. The requirement for this high pass mark helps to ensure that an employee has actively learned from the online course and understands the principles of H&S in the workplace. Upon successfully achieving the required assessment score, Intuto manages the production of an individual photo ID card for each employee. The online course is underpinned by innovative user management allowing each company to manage and track their own staff’s learning and compliance. l

May 2011 FMCG

Product

Recalls What to do when things go wrong? Mark Gavin explains.

or the large majority of companies, the possibility of having to recall a product is a nightmare scenario as it can result in damage to the company’s brand, its corporate reputation and consumer trust. More importantly, sometimes it can put consumer safety at risk which could lead to criminal penalties. To prevent such an event occurring, most companies put specific measures in place to ensure that the products they manufacture or sell are consistently of “acceptable quality”. However, sometimes the inevitable happens which requires the recall or withdrawal of products and the focus then shifts to how to mitigate the situation. The way a company handles a product recall is important as it sends out a message about how it treats consumers and a well handled product recall can sometimes work

FMCG May 2011

to the company’s advantage. In New Zealand there are a number of consumer protection laws which have specific requirements for product recalls where goods do not meet certain standards. For example, the Food Act 1981 grants the New Zealand Food Safety Authority (NZFSA) and the Minister of Food Safety broad powers to recall food products for any purpose that protects the public. If a recall is ordered under the Food Act, the penalties for non-compliance of the recall are a fine of up to $2000 or imprisonment of up to three months. In addition, the Minister of Consumer Affairs can order a compulsory product recall under the Fair Trading Act 1986 where goods are likely to cause injury or do not comply with a prescribed safety standard. On discovering that a product is

not up to standard, generally the first step required is to record as much information as possible about the nature of the fault or injury - for example, by talking to the customers who have complained, the number of products affected such as through identifying batch, lot numbers or production dates, and possibly arranging for independent test reports or other assessments to determine the injury potential. Once a decision has been made to initiate a product recall then someone will need to be in charge of coordinating the recall, which will include finding out more information about the distribution of the affected products, putting in place a suitable remedy such as a replacement of the product or refund, and monitoring this as the recall of products eventuates.

featu re Having a product recall plan in place will help to ensure that you can move quickly as soon as the problem is identified.

To streamline this process, members of the Australia and New Zealand food and grocery industries have adopted procedures for product recall and withdrawal through Efficient Consumer Response Australasia (ECRA). A standardised form for notifying those throughout the distribution chain, the appropriate Government agencies and the media can be downloaded from the ECRA website (see www.ecraustralasia.org.au/ product-recall/). A good example of how things can escalate was with Pan Pharmaceuticals in 2002 and 2003 when the Minister for Food Safety ordered a series of product recalls for dietary supplements manufactured by the company. This was following the recall of over 1500 different herbal products, vitamins and pharmaceuti-

cals in Australia which were said to be potentially harmful due to a series of safety and quality breaches. The scale of the recall was unprecedented in Australia and New Zealand and initially it was hard to determine exactly which of these products were available in New Zealand. The company collapsed soon after the recall. Similarly, in 2005 an energy drink called Ammo was recalled by the NZFSA after it was found to contain Benzylpiperazine (BZP), an active ingredient in party pills that has since been reclassified as a Class C drug. The NZFSA recalled the product after getting complaints from customers that the drink had caused hyper-sensitivity, anxiety and sleeplessness. The distributor of the energy drink initially withdrew the drink from dairies, but fought to keep it available to an adult market through nightclubs and adult stores. The NZFSA was eventually successful in recalling the product entirely after the voluntary recall was found to be insufficient to properly protect consumers. The NZFSAâ&#x20AC;&#x2122;s fight to have the drink recalled resulted in widespread negative publicity for the distributor and renewed media attention on the party pill industry. However, statutory recalls are rarely enforced as product recalls are much more likely to be voluntarily initiated. A recent example was in March 2011 when a product recall was initiated after laboratory tests found the presence of E.Coli in Biofarm bush honey yoghurt. Although there were no reported consumer complaints or illness, a New Zealand wide product recall was initiated through all major

food retail outlets and health food shops as a precautionary measure. Nevertheless, irrespective of the nature of a product recall or withdrawal, a company should handle the recall in an efficient and transparent manner. Having a product recall plan in place will help to ensure that you can move quickly as soon as the problem is identified. Delaying a recall may put consumer safety at risk and also lead to consumer perception that the company has tried to conceal important information. Further, it may even enhance your companyâ&#x20AC;&#x2122;s reputation, for example if you are able to contact consumers directly through database records personally rather than relying on them to come across it in the media. For further information on the processes involved and who to contact, visit the Ministry of Consumer Affairs and New Zealand Food Safety Authority websites (www.consumeraffairs.govt.nz/for-business/ compliance/product-safety/ guidelines-for-product-recalls; www.foodsafety.govt.nz).

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

May 2011 FMCG

The luckiest

bees

Muzzle Station Homestead and country looking South East.

in the world

Beekeepers Andrew and Lucy Mahuika.

FMCG may 2011

sk Lucy and Andrew Mahuika about their organic Blue Borage honey, and they will tell you it is produced by some of the luckiest bees in the world! That’s because the bees that produce this exquisite liquid gold live on one of the most remote high country stations in New Zealand (Muzzle Station). Situated up the Clarence Valley, and nestled between the rugged inland and seaward Kaikoura range, this breathtaking property is refreshed by the waters of the Clarence River. Clarence Valley Apiaries has been producing honey since 1986 and achieved full organic certification in 2006. Started originally by Lucy’s parents (Colin and Tina Nimmo) together with a friend from Kaikoura

in the mid-1980s, it was later operated as a partnership between the Nimmo and Milne families from 1991 onwards. In early 2007 Lucy and Andrew Mahuika took over the beekeeping role. In a good summer the hills of Muzzle Station produce a vast amount of Blue Borage flowers from which most of the apiaries’ honey originates. There are also a number of other species offering additional nectar and pollen sources such as Manuka, Matagouri, Willow and Briar, which help make up any shortfall in cooler months. The vipers bugloss plant (also known as “Blue Borage”) has tall blue wildflowers and is predominantly found in the Marlborough and Otago provinces in the South

PROTECT YOUR BRAND Organic apiary looking North West.

Clarence Valley Organics Honeyhouse.

Island. Its European name is believed to have originated from its unique flower shape which is said to resemble a ‘coiled viper ready to strike’, while “Blue Borage” is a local common name. The honey produced from this flower has a delicate flavour and because of its high fructose level, is perfect for sweetening drinks. Lucy and Andrew have around 23 apiaries with approximately 550 hives, which are all certified organic under the AsureQuality Organic Standard. “In an average season Clarence Valley Apiaries produces approximately 20 tonnes of Blue Borage and two tonnes of Manuka honey. When we have a really good season we can harvest as much as 30 tonnes

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Processing organic honey.

of our Blue Borage variety,” says Lucy. Unfortunately, the extreme climatic conditions of this area often mean this can be offset the following year by a yield of only 17 tonnes. Clarence Valley Apiaries produces product both for the New Zealand domestic market and for potential export to Japan and the EU. As well as carrying out its organic certification, AsureQuality also verifies its Apiary Risk Management Programme. Integrating both audits in this way means Lucy and Andrew can minimise the duplication of records for the two programmes, and only need to put aside one day per year for their annual audits.

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Perfect Steak, mince & cheese, or vegan… whatever you fancy, there is no denying that New Zealanders love a good pie. FMCG talked to some of the key players in the pie industry, which is estimated to be worth around $150 million this year.

Oxford Pies is a Kiwi owned and operated wholesale bakery specialising in the manufacture of many flavours of meat pies, sausage rolls, savouries and fruit puds from its premises in the heart of the Waikato. The company employs some 20 fulltime and part-time team members. Oxford Pies sells a range of standard and premium pies and sausage rolls into a variety of outlets with dairies and service stations being its core business. Sales and marketing manager Fiona Barnett says: “We are currently working on three new varieties; two are vegetarian while the third is a Thai chicken pie, which is to die for! These varieties will be released mid May just in time for the cooler months. “Mince & Cheese pies will always be a favourite amongst Kiwis however we have had a lot of feedback asking for vegetarian options.”

FMCG February 2010

pies She adds: “Mince & Cheese is our biggest seller by a country mile. It won a gold award in the commercial/ wholesale division at the Bakels Supreme Pie Awards. Oxford Pies specialises in the manufacture of top quality meat and fruit pies using top quality ingredients to achieve the sought-after product range consumers are demanding.” Oxford Pies was established in 1977 in Oxford Street, Hamilton. In 1982 the company moved to Vickery Street, Te Rapa. In 1997, Oxford Pies was bought by John and Robyn Newell. As production increased and food regulations tightened the Vickery Street site was no longer large enough to cope with the demands of the industry. John drafted plans for a purpose-built factory and in 2002, Oxford Pies relocated to the Pukete Industrial Estate. “We have recently also achieved a Risk Management Programme, which takes us to the top end of food safety practices worldwide,” says Barnett. John and Robyn have expanded Oxford Pies, now offering a more extensive product range and supplying to a variety of dairies, lunch bars, service stations, function centres, canteens and education

facilities throughout the Waikato and Bay of Plenty. New gourmet pies Maketu Pies in the Bay of Plenty sells a full range of pies to convenience stores, petrol stations and supermarkets nationwide in 200g snack size and 500g family size (family size mussel pie and snack size pies shown at top of page). “We have launched our gourmet pies in the last 12 months,” says general manager James Wilson. The range includes flavours such as Prime Beef & Blue Cheese, Seafood Mornay, Chicken Leek & Tarragon and Bacon, Egg & Tomato Pesto. Maketu’s bestselling pie is still Mince & Cheese, however Maketu Pies has new flavours under-development at the moment and is expecting to launch them this winter, says Wilson. “Consumers are still keen to buy good quality New Zealand pies,” he concludes. Behind every great warrior there’s a great pie Kiwis are passionate about their pies and consider them to be the perfect snack on the run at any time of the day. Caroline Jones, senior category

marketing manager – Baking, Goodman Fielder NZ, told FMCG: “Within a challenging and fiercely competitive market, Irvines has established itself as the market leader with 41% value share of the total pie category in total supermarkets* – nearly twice the size of our nearest competitor. Irvines boasts a single serve pie range to suit every shopper. With a range of 170g snack pies, Irvines also trades shoppers up to the Big Bite 210g range and the Irvines Premium Pie 230g range. Irvines has been serving Kiwis their favourite pies for over 90 years and is proud to be the Official Pie Supplier and a sponsor of The Vodafone Warriors. “There is perfect alignment between the Vodafone Warriors fans and Irvines’ consumers and we will be leveraging this relationship with a two-year campaign, which will raise the profile of the Irvines brand and the May 2011 FMCG

‘The lovely little food company’ directors Maree Glading and Jessie Stanley.

total pie category,” says Jones. Using this sponsorship to drive growth in the category, Irvines will be running a 12-week consumer promotion and launching an exciting new product in June, Jones revealed. Irvines branding and promotional activity will feature at Mt Smart Stadium and Irvines snack pies will be sold at each Warriors home game to drive repeat purchase and demand in-store. “Irvines is excited to be backing the Vodafone Warriors alongside a following of fiercely passionate fans who love their team as much as their Irvines Pies,” says Jones. *Synovate Aztec MAT data to 27/02/2011

I LOVE PIES The lovely little food co. was founded by Maree Glading and Jessie Stanley, who say their business is currently focused on grocery, the gourmet retail channel and food service. They produce a range of premium pies under the ‘I LOVE PIES’ brand. “We launched a 6-pack of party pies recently, as we recognised the opportunity for a premium small savoury, not only for consumers to use when catering for large groups but the smaller size also caters well to children,” explains Glading. Their best-selling pie is the ‘Angus Beef Steak and Caramelised Red Onion’ large family pie, which is based on the Kiwi classic steak and onion but with a twist. “We use only top quality prime Angus beef, with

FMCG May 2011

Dual-income homes mean family meal times require quick and easy meal solutions, but still need to deliver on nutritional benefits that growing kids and families need. red onion caramelised in brown sugar and balsamic vinegar with a hint of rosemary and of course encased in our unique sour cream pastry,” says Glading. “We are a relatively new company – we have been in business three years – and we are new to the grocery channel, so we are therefore focusing on getting distribution and educating consumers about our brand and product range. We do see some great opportunity in the future for more seasonal lines and there are endless opportunities for exciting flavour variants,” says Glading. She believes that transparency is important and people want to know what goes into the food that they eat, especially within the pie category. “In our pies we only use top quality ingredients from suppliers who, like us, also care about how food is produced, such as Frenz eggs and Freedom Farm bacon. When you look at the back of our ingredients panel it doesn’t read like a science experiment; there are no preservatives, additives and

colourings and all the ingredients can be found in your pantry at home,” she says. Glading explains: “I LOVE PIES taps into premiumisation as consumers have increased their understanding that for good quality ingredients they need to spend a bit more. There is also a foodie revolution going on that pies are in a perfect position to capitalise on. The pie category has traditionally labelled a large sized (weight point) individual pie made with an untraditional filling such as Butter Chicken as ‘gourmet’. In today’s market you are not just competing with other pie brands but against other ready meal solutions, so the benchmark of what really is classified as ‘gourmet’ is so much higher.” Mrs Mac’s Mrs Mac’s sell individual pies wrapped in Mrs Mac’s packaging and unwrapped in the gourmet Red Embers range at convenience stores and at petrol stations. The range currently sold in New

Zealand includes 12 pies, three ‘Halal’ pies and a range of sausage rolls, ‘Cruizer Pies’ and pasties. “We have launched two new quiche products, which are ideal for breakfast or light snacking – they are ‘Egg, Cheese and Bacon’ and ‘Ricotta and Spinach’. And even though they have only been in NZ for a short while, they have picked up and are selling really well as an alternative to a ‘traditional’ pie,” says Mrs Mac’s marketing manager Melissa Vella. “We launched a range of limited edition pies in 2010 – Big Minced Beef and Cheese, Tex Mex and Meat Lovers. Response from the market was very positive and customers enjoyed the revitalisation of the category – we ended up including the Big Minced Beef and Cheese and Meat Lovers in our core range. We are currently re-launching our Shepherds Pie in a new 220g format and calling it the Potato Top Pie (as

shown at top of this page). We have reduced the size by only 30g and passed on the savings to our distributors and customers. It is a lighter alternative to Beef Pies, without compromising on quality and flavour. In the past six months we’ve also launched three Halal pies in beef variants: Beef, Beef & Cheese and Chilli, Beef & Cheese. This range is gaining good momentum. Our best selling pie in New Zealand is Minced Beef & Cheese,” says Vella. Consumers are being far more frugal with their money, so value offers or perceived value (packaging of products in meal deals) are definitely on the increase, according to Vella. Dual-income homes mean family meal times require quick and easy meal solutions, but still need to deliver on nutritional benefits that growing kids and families need.

Says Vella: “Time is money and people are eating more on the go between tasks and meetings (no time to stop) and spending less time preparing meals for them and their family.” In contrast to this, some consumers are spending more time entertaining at home and experimenting in the kitchen. Reality TV is fuelling this with programmes like MasterChef and My Kitchen Rules. This has led to a decline in “eating out”. “Health is still top of mind and consumers are prepared to pay

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May 2011 FMCG

Last year we won gold for the best Commercial Mince and Cheese pie.”

Pat's Pantry Steak & Vegetable pie.

a little more to eat ‘better’ and have peace-of-mind in doing so,” comments Vella. Gourmet Foods Tauranga-based Gourmet Foods supplies both Pat’s Pantry and Ponsonby Pie brands to convenience stores. Pat’s Pantry sells in lunch bars, takeaways, cafes and some service stations. “Our Ponsonby Pies are sold through the Mobil chain of service stations nationwide, but many cafes and upmarket lunch bars also sell this brand,” explains Bryce Cole, general manager Gourmet Foods. “We have had a busy year with several new flavours launched: Beef & Blackbean, Creamy Mushroom, Bacon & Cheese and Moroccan Lamb. We are currently working on a vegetarian pie to be launched soon with a couple of other products at an early R&D stage. New family pies – Lamb and Rosemary and Chicken and Kumara – have also been introduced at the beginning of the year and are available at selected supermarkets in the freezer section,” says Cole. He adds: “In the traditional-sized 180g pies New Zealand’s number one and

FMCG May 2011

number two best-selling pies are Steak and Cheese followed closely by Mince and Cheese. Our top-selling Gourmet pie is the Chicken & Kumara pie, which has sumptuous chunks of chicken smothered in a creamy kumara mash and topped off with a touch of our secret recipe peach & mango chutney. It’s absolutely delicious! “Creamy Mushroom Bacon and Cheese is following close on its tail,” adds Cole. He says: “With the current fuel increases and the effects from the Christchurch earthquake, we find people do not have the extra discretionary spend they once had, so overall service station and lunchbar spends are down a little. Supermarkets show a different trend as people tend to take pies home to use as a meal solution and as times get tough and people become time poor, a quick, economic and tasty solution is to have a pie with a salad or veges.” Cole says: “We are currently selling nationwide and have recently gained a Risk Management Programme (RMP) certification allowing us to export products. We currently have enquiries from several countries. We are always on the lookout for new product ideas and flavours to increase our range. “We will be entering into the Bakels Pie Awards again this year and hope to add to our 20 awards on the wall.

High tech pastry plant Managing director and founder of Dad’s Pies, Eddie Grooten says Dad’s Pies is a leading supplier of ready baked chilled and frozen pies, pastry and food service products in New Zealand with export markets in the UAE and Asia. Dad’s is proudly New Zealand owned and run since 1981, making Dad’s one of the oldest running pie companies in New Zealand. Dad’s Pies is a specialist pie and pastry manufacturer with all the expertise surrounding this. Dad’s Pies Gourmet Butter Chicken is the top selling flavour through BP Wildbean, following a trend for more exotic and international flavours. The Esquires Coffee contract was recently awarded to Dad’s Pies in line with the successful relationship with Brumbies as an exclusive national supplier. Dad’s Pies is currently developing a range of new premium flavours to meet the increasing demand for mouth-watering, nutritious pies. All Dad’s Pies are trans-fat free, have no added colouring or preservatives and are lower in fat through the use of lower fat pastry and lean, premium meat and chicken. Dad’s Pies has also launched a range of decadent fruit snack Vlarios (Dutch Speciality Danishes) with unique fruit and custard fillings wrapped in yeast dough. Vlarios are ready to eat, frozen and delivered in aroma-proof boxes. Filled with a variety of fruit and custard fillings and covered with a yeast dough lattice, Vlarios are then pre-garnished with jelly and sugar crystals. There is no additional preparation needed and they can simply be defrosted and sold. Vlarios have a 12-month frozen shelf life and a five-day defrosted shelf life.

Dad’s Pies has a national distribution platform, a centralised telesales service to cater for customers’ requirements and customer-specific products manufactured to the highest quality and food safety standards. Food safety is of the utmost importance and Dad’s Pies has implemented both the HACCP and RMP programmes to ensure the best quality products are made available to customers every time. Recently a state-of-the-art pastry cutting and stacking line was installed in Dad’s Pies high tech pastry plant, giving Dad’s Pies the capability to supply customer-specific pastry solutions. Gluten free and vegan pies CuisAnn supplies tasty, wholesome gluten-free pies. It is a family-owned business and operates from a lifestyle property on SH1 just south of Whangarei. Ann Brockliss and Robert Eady founded the company in 2002 and Ann’s daughter Angela joined CuisAnn in 2007 to help grow the business nationally. Brockliss has always had a passion for natural health, and for a number of years owned her own health shop. Her mother was diagnosed

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Activity at Mt Smart home games Final game in Sydney - CP grand prize POS Consumer Promotion New Irvines THE BEAST Pie Advertising and promotional support

May 2011 OFFICIAL FMCG 53 TO PIE SUPPLIER THE VODAFONE WARRIORS

with Coeliac disease, and many other people were looking to make dietary changes and become gluten free, but the selection of allergyfriendly foods available then was rather unappetising. So after selling the health shop, Brockliss decided to follow another passion in life: cooking. Over the years, she has developed a range of gluten-free products with great taste that are liked by everyone, not just Coeliacs. Brockliss explains: “Our products are made in a dedicated glutenfree kitchen using our own glutenfree flour blend and our own unconventional pastry. “Our standard product range includes: mince, mince & cheese, steak & onion, steak & cheese, hearty chicken, curried chicken & kumara, smoked fish, chilli beef & bean, corned silverside & tomato, curried vegetable, bean & tomato, buckwheat & ginger. “Our gourmet range includes: bacon & egg, butter chicken. “Our best selling pie is mince & cheese followed by steak & cheese.” André Taber, in The Great New Zealand Pie Guide, had this to say: “She uses her own special blend of gluten-free flours which she makes into a short pastry, and the result is a rustic-looking pastry that is moist

FMCG May 2011

and chewy with a slightly nutty flavour.” CuisAnn has recently launched a small range of gluten-free, dairyfree pies. This range includes: mince, steak & onion, hearty beef & tomato, curried chicken & kumara, curried vegetable, bean & tomato. The curried vegetable and bean & tomato pies are also vegan. Brockliss says: “Our business has been following a steady increase in volume over the last four years. The numbers of people adopting a gluten-free lifestyle, either because they have to, or choose to, is in our view increasing annually. Our pies are well liked, and families are choosing to all eat our pies, rather than have one or two in the family being served different food.” ‘Pie on the Fly’ Packaging Brands (NZ) has recently appointed a new Auckland-based distributor to support growing sales

of its ‘Pie on the Fly’ range to local route trade customers. The Pie Guys is a start-up business run by brothers Scott and Shane Smith. Specialising in supplying pies, savouries and associated frozen products to customers across greater Auckland, the brothers plan on building on their success with the ‘Pie on the Fly’ range by progressively adding to their capacity and extending their geographical reach. Older brother Shane believes that the initial success they have had in penetrating the local market as a new player can be attributed to their focused range of quality products and their commitment to customer service. Shane says: “As a small company with a narrow but carefullyselected product range, we need to be more responsive to the needs of our customers, who know that if they need stock or product support, they can count on us to deliver within the hour if necessary.” l

New executive director for AACS A new AACS executive director has been appointed, according to an announcement from AACS chairman Karim Sumar. Sheryle Moon resigned from AACS effective April 7 2011 to pursue other career opportunities and the board acknowledged her contribution to the association. The board appointed Jeff Rogut as the new executive director effective May 2. Rogut is an experienced retailer with many years’ experience in the industry from both retailer and supplier perspectives.

His experience in retail covers management, marketing, buying, merchandising, and leadership. He has worked as a franchisee and franchisor, as well as in the corporate sector and with companies such as Shell, Target, 7-Eleven, Campbell’s Cash & Carry and Mitre 10. Rogut has been the executive director of The Australian Centre for Retail Studies at Monash University, and most recently was the general manager of marketing and merchandise services at FoodWorks. l

Gull launches 85% biofuel Gull New Zealand has announced the launch of Gull Force Pro, a new high-octane biofuel with 85% bioethanol content. The new fuel reduces greenhouse gas emissions by 35-50% compared with ordinary fuel (according to calculations by the Energy Efficiency and Conservation Authority) marking a new era in New Zealand biofuel. General manager of Gull New Zealand Dave Bodger says the new fuel gives drivers a real choice to reduce pollution and help New Zealand meet its target of a 50% reduction in greenhouse gas emissions by 2050. Bodger says introducing Gull Force Pro continues Gull’s leadership position on retailing biofuels in New Zealand. “Gull Force Pro is part of our ongoing commitment to biofuels and addressing climate change. It is delivering on our strategy of providing renewable fuel beyond petroleum,” he said. V8 Supercar drivers Garth Tander and James Courtney helped launch Gull Force Pro in April – the first biofuel/petrol blend with a high bioethanol content to be sold in New Zealand petrol stations. ITM400 V8 Supercars have been powered by 85% ethanol (E85) since the beginning of the 2009 season. As well as race cars the fuel can be used in Holden’s range of FlexFuel vehicles, which are designed to run on bioethanol, petrol or any blend of the two. FlexFuel vehicles have been sold in New Zealand since last year, but until now there was nowhere to fill up with E85. “Gull is excited to offer E85 and expects Kiwi drivers to use more and more of it as time goes on and FlexFuel vehicles become more common,” says Bodger. “Gull is committed to sustainable motoring through the introduction of renewable fuels that reduce greenhouse gas emissions,” he said. Bodger said Gull had taken care to source the bioethanol from sustainable sources so it represented a real cut in greenhouse emissions.

Gull Force Pro will be available from Gull’s new service station at Ohaupo Road, Melville, Hamilton. The Melville station is also the first in New Zealand to offer the full range of Gull biofuel/petrol blends: Gull Force Pro, Gull Force 10 and Gull Regular Plus. Gull New Zealand is the independent family-owned oil company that is credited with keeping the fuel market competitive and giving savings to the Kiwi motorist. It has become a serious player, offering a real choice for motorists in an extremely competitive market. Gull New Zealand was founded in 1998 by the Rae family who saw the need and potential for an independent energy supplier. Adherence to a philosophy of low-cost management, prudent investment decisions and a carefully planned marketing strategy commenced with the building of a state of the art terminal in Mount Maunganui in 1998. Tanks were relocated from Marsden Point by barge, a feat the opposition said was “impossible”. Gull New Zealand made the first retail sales of petrol in 1999 and has grown the network to over 40 branded sites. Gull now has five service stations that only sell biofuel blends, which is another first for New Zealand. l May 2011 FMCG

Tough times ahead Shopping behaviour is changing, finds Trina Snow. Trina Snow, executive director, NARGON.

A number of recent media articles have looked at what impact the ongoing global recession is having on consumers’ shopping habits. Unsurprisingly, most commentators have concluded that money is increasingly tight, which in turn is pressuring many shoppers to change their purchasing patterns. This is certainly the case in New Zealand, but similar stories are reported in Australia, Britain, Canada and the United States. In New Zealand, it appears that one of the main victims of the recession is the traditional big weekly grocery shop. Instead, shoppers are shopping more frequently but making fewer purchases during each visit to try and keep their grocery spending in check. Some stores are responding by introducing more small trolleys – bigger than a basket but not as big as a full-size trolley – to cater precisely for these shoppers. There is mixed evidence regarding whether lots of little shops actually saves money over time. Certainly, sales figures for the retail grocery sector have been comparatively strong over the past two years. By shopping several times a week, there is a greater chance that shoppers will make more impulse purchases because they will be in the store multiple times instead of a single circuit. This is particularly the case when a shopper has no list or plan. Interestingly, the recession has seemingly not prompted more New Zealanders to write shopping lists. We remain relatively disorganised shoppers. Conversely, surveys in America indicate shoppers there are planning more and becoming increasingly precise in their purchasing habits. Across the board, stores are reporting more customer interest in budget brands and house brands. This is a combination of tighter budgets and the generally improving quality of budget products. For many products – particularly food basics – customers may consider that what is on the label is less important than what is on the price tag. However, sales of many high-end items,

FMCG May 2011

such as meat, skincare products and alcohol, are holding up because people are making the conscious decision to keep a few luxury items in their baskets. An increasing number of consumers are purchasing more medicine, cosmetics and hair care products from stores rather than specialist shops. This trend can be expected to increase as stores gain the ability to sell a wider range of medicines and personal care products after some overdue rule changes last year. There has also been an upsurge of interest in “oldfashioned cookery”, including baking, slow cooking and using cheaper cuts of meats. People are increasingly baking their own treats rather than buying them already made. Slow cookers, often called crockpots, are popular items and can be used to make soups, stews and casseroles.Their popularity will only increase as the weather deteriorates. Budget-conscious shoppers are also paying more attention to cheaper cuts of meat such as skirt steak, offal and bones. Items such as bacon hocks, which previously may not have even been displayed, are flying off the shelves into thrifty yet tasty dishes like pea and ham soup. Some stores have even started offering recipe ideas for traditional cheaper dishes, which had fallen out of favour with many Kiwis. New Zealand is currently experiencing one of the worst recessions in a generation and, unfortunately, in tough economic times thefts from stores tend to increase. A series of official reports and industry feedback suggests there has been a marked increase in retail theft with expensive items like meat, wine, razor blades and make-up now being targeted in addition to the staples. It is estimated that thefts cost New Zealand stores up to $800 million a year. Stores need to be exceptionally careful with their security and layout. It is clear that the continuing recession is putting pressure on household budgets and significantly influencing consumer behaviour.The changes include an increasing frequency of smaller shops, ongoing reluctance to plan properly, strong interest in budget products at the same time as sustained demand for some high-end luxury items, increasing sales of personal care items, a revival of traditional cooking, growing popularity of cheaper ingredients and the risk of increased theft. Even the most optimistic forecast sees several tough years economically ahead and stores need to be prepared.

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the business of liquor reselling

Yealands

Yealands Estate Wines has reiterated its commitment to the New Zealand market with the appointment of a national sales team. The sales team of 15 will be responsible for driving the Yealands brand portfolio throughout New Zealand: Yealands Reserve, Yealands Estate, Peter Yealands, Pete’s Shed, Violet Sparkling and Full Circle. Entrepreneur and founder Peter Yealands says the appointment of a national sales team puts the company in a strong position to continue to grow brand presence in New Zealand.

FMCG February 2010

“This is an exciting time for Yealands as we expand our existing market share and establish new sales channels. We are delighted with the talent that Yealands has attracted and the team that we now have on board.” The new team will drive a fleet of eco-friendly Toyota Camrys. The ultra-low carbon emission vehicles use a combination of petrol and electric technology to reduce carbon dioxide emissions, making them one of the most environmentally friendly cars on the market. “The Toyota Camry fits our

Estate evolves

Peter Yealands with the new fleet of eco-friendly Toyota Camrys.

philosophy and environmentally sustainable practices, which go further than the winery itself. We aim to apply green technology in every aspect of the business, even when on the road,” says Peter Yealands. Blenheim Toyota ceo Craig McDermid says the company is thrilled to align itself with a leader in sustainable practice. “Hybrid vehicles are now recognised as a commercially viable alternative, as environmental awareness among consumers continues to rise, so does the demand for a more sustainable, low cost motoring option, which

hybrid technology offers,” says McDermid. Yealands Estate is New Zealand’s leading environmentally sustainable winery based in the Awatere Valley in Marlborough. Developed by Peter Yealands, the privately owned winery features advanced green technology in every aspect of design and function. It received carboNZeroCert certification from Landcare Research in April 2009 and in doing so was the largest winery in New Zealand to achieve this status for its organisation and wine products.

Yealands wines launched to great acclaim in August 2008, and have collected more than 160 awards to date, which goes to show that being green also means making a great drop. Reducing total carbon footprint New vine pruning boilers were also installed at Yealands Estate winery in March. The new boilers will now act as an innovative source of renewable energy and will see Yealands Estate save 44 tonnes of LPG this year. The two purpose-built boilers will provide the winery with an alternate source May 2011 FMCG

of energy by burning post-harvest vine prunings. The bio-mass boilers will reduce Yealands’ total carbon footprint for LPG to zero. The boilers have been designed to heat the

Did you know . . . • Each bale of vine prunings weighs about 200kg • 20 bales are produced from each hectare of vineyard • 132,000kg or 660 bales of vine prunings will be used as a source of energy this year • Yealands will save 44 tonnes of LPG from the initiative • Yealands’ total carbon footprint for LPG will be reduced to zero.

winery’s water and glycol – a liquid that is pumped into ‘jackets’ used to heat or cool fermentation tanks. Previously composted and used as mulch, 10% of the vine prunings will now be baled after each vintage ready to fuel the boilers. The subsequent heat energy will be trapped and used in the winery to heat water and glycol. The remainder of the prunings will continue to be

used as mulch. Peter Yealands is delighted to have the boilers installed and ready for harvest. “The wine-making business is hugely energy intensive, and heating and cooling wine accounts for roughly 85% of the winery’s total energy consumption. This new initiative is evidence that sustainable wine production is not only possible, it is commercially viable,” says Yealands. l

Vine prunings are ready for the boilers.

FMCG May 2011

Keeping beer fresh longer Beer could stay fresh and tasty longer thanks to the discovery of a scientific basis for extending its shelf life. Researchers are reporting they identified the main substances that cause the bitter, harsh aftertaste of aged beer and suggest that preventing the formation of these substances could help extend its freshness. Their findings appear in the Journal of Agricultural and Food Chemistry. The researchers point out that unlike wine, scotch whiskey, and bourbon, beer tastes best when consumed fresh. Experts estimate that the average beer goes bad after 6 to 12 months of storage. Scientists have identified several dozens of the key bittertasting substances formed during beer manufacturing – mostly so-called “prenylated

polyketides” derived from hops. Until now, however, nobody had solid information about the bitter substances that form as beer ages. The scientists analysed a variety of commercial beers both before and after storage. They identified 56 substances that contribute to beer’s bitter taste, including five that appear to be largely responsible for its harsh flavour after aging. The present study offers the scientific basis for an extension of the shelf life of beer and the delay of the onset of the less preferred harsh bitter aftertaste by controlling the initial pH value of the beer and by keeping the temperature as low as possible during storage of the final beverage, the researchers conclude. l

Winery pours support into Christchurch earthquake relief The Christchurch Mayoral Earthquake Relief Fund will be boosted by more than $250,000 donated by The Mud House Wine Group. ‘The Day the Ground Moved Like Jelly’ initiative was facilitated by Mud House Wines and has raised more than $269,000 for the Christchurch Mayoral Earthquake Relief Fund in an effort to rebuild the stricken city. The initiative began just days after the September 2010 earthquake and saw the launch of a special blend of Marlborough 2010 Sauvignon Blanc. The new wine also featured a distinctive label – a drawing by 8-year-old Christchurch student Bella Kingi of her home following the earthquake. Christchurch Mayor Bob Parker described the initiative as “wonderful” and says the money raised will help rebuild the Garden City. “I’m humbled by the wonderful, heartfelt support

this city has received from all around the country and this initiative was another example of people’s generosity and desire to support our beautiful city in its time of great need,” he says. “We hope that our contribution will help to rebuild Christchurch and the lives of its people who have shown remarkable bravery during these tough times. “The money raised will help us to rebuild this very special city of ours – the resilience shown by the people of Christchurch will ensure the city is stronger and more beautiful than ever.” Marlborough Mayor Alistair Sowman says it was inspiring to see so many people throughout the country support the campaign. Mud House Wines led the fundraising project with numerous production, packaging and freighting companies also coming on board to offer their assistance. l

May 2011 FMCG

Award-winning winery appoints new ceo The Mud House Wine Group has announced the appointment of a new ceo for its award-winning New Zealand winery. MJ Loza brings a significant breadth of experience across the agribusiness sector, including the wine industry, to the Mud House Wine Group. A member of the NZTE USA high-end wine programme, Loza is also on the board of Pinot Noir 2013. Mud House Wine group director Neil Charles-Jones says Loza brings an exciting mix of leadership and strategic skills, marketing focus, agribusiness experience and passion for the wine industry to Mud House. “These characteristics make him a great ceo to lead the pursuit of Mud House’s growth strategy and I am confident that our business will continue to flourish under his leadership,” he says. Loza, whose most recent role was general manager at Seresin Estate winery in Marlborough, says he is thrilled to join the Mud House Wine Group. “Mud House Wine Group is an innovative company that I believe is well on its way to putting its stamp on the international stage,” he says.

“To be a part of this award-winning New Zealand winery is a real honour and I look forward to working with such a talented and inspirational group of individuals.” Established in 1996, the Mud House Wine Group owns the Mud House and Waipara Hills brands. Mud House branded wines are distributed through vintners in New Zealand and are also available in Australia, US, Canada, UK, EU and Asia. Mud House has a strong wine range including Marlborough Sauvignon Blanc and Central Otago Pinot Noir. l

MJ Loza.

Good wines and cocktails at Wellington Food Show Wellington is about to become the country’s capital of cuisine from 27-29 May during The Food Show Wellington at the Westpac Stadium. Visitors will be treated to more than 200 exhibitors offering a mouth-watering collection of foods and drinks to try and buy, plus the chance to witness the Wellington Culinary Fare, where competitors race against the clock to complete a range of challenges and win the coveted ‘Chef of the Capital’ title. The show also features a range of top celebrity chefs cooking live, including MasterChef New Zealand judges Simon Gault and Ray McVinnie, plus Ruth Pretty, Lauraine Jacobs, Alison and Simon Holst and Richard Till. Try a pre-mixed cocktail from VnC Cocktails, or, if you’re a designated driver, a Cactus Juice from Relax Juice, check out Loaf handcrafted breads, avocado oil from Olivado, hummus from Lisa’s, or assemble an antipasto platter from Blue Rock’s selection of cheeses and olives,

FMCG May 2011

alongside cold meats from Verkerks. Choose from a huge selection of wines, including Hawke’s Bay favourites Black Barn Vineyards, Sileni Estate, Sacred Hill, Unison Estate, and Vidal Estate. Make sure you check out the new chocolate puddings by Gü Puds and the environmentally friendly cleaning products from Ecostore. The possibilities are endless at The Food Show. l

Bledisloe Medal for Neal Ibbotson This year, Lincoln University’s revered Bledisloe Medal is to be awarded to Saint Clair Family Estate’s founder and owner Neal Ibbotson, a past graduate of the university in Canterbury, New Zealand. The Bledisloe Medal for 2011 recognises Ibbotson’s outstanding contribution to New Zealand’s landbased interests. Initiated in 1930 by the late Governor-General of New Zealand, Viscount Bledisloe, the medal is awarded annually to a former student or staff member of Lincoln University who, in the opinion of Council, has made an outstanding contribution in his or her chosen field, advanced New Zealand’s interests and/or brought credit to Lincoln University. Ibbotson will be attending the award presentation at the Lincoln Events Centre in May 2011. Neal and his wife Judy, owners and operators of Saint Clair Family Estate, were two of Marlborough’s earliest vineyard pioneers, planting their inceptive vineyard interests in 1978. Knowledge of the soils and climate provided insight into the region’s suitability for grape growing and wine production, and the pig farm that once surrounded the homestead was transformed into a small vineyard with some of the first fruit crops contracted to Montana.

Desire to see fruit from the vines transformed into quality wine led Neal and Judy to create their own wine brand, Saint Clair, in the early 1990s. The launch of Saint Clair wine sparked gold medal accolades – and the cascade of awards has not ceased. As a result, Saint Clair Family Estate is now internationally recognised as a leading New Zealand wine producer. Today Saint Clair Family Estate is a true family business, with all three children (Sarina, Tony and Julie) involved. “We feel very fortunate to be part of the Neal Ibbotson. family business and are enormously proud of what our father has achieved through hard work, determination, passion and drive,” says Julie. “He is an inspiration to us all.” Through the effort and resulting accomplishment of Neal and Judy Ibbotson, working with a great team at Saint Clair and other like-minded Marlborough wine producers, Marlborough is recognised internationally as producing world-class wines of excellence. l

Win a case of sparkling Sauvignon Blanc! Subscribe to FMCG this month and go in a draw to win a case of ‘Violet’ Sparkling Sauvignon Blanc (see page 13 for more details)! Named in honour of Vai Yealands, co-founder of Yealands Estate, this sparkling wine has been lovingly crafted in the carboNZero certified Marlborough winery. Why not celebrate Mother’s Day this year with this beautifully balanced sparkling Sauvignon Blanc.

This wine is pale straw in colour with a finely beaded mousse. The nose exudes lifted tropical notes of guava balanced by citrus notes and fresh thyme characters. The palate is full with sufficient weight and texture, balanced by an underlying flinty minerality typical of the Seaview Vineyard with a fresh and crisp finish. Cherish life’s special moments – Celebrate with Violet! l

May 2011 FMCG

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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

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

NZIFST Conference Rotorua www.nzifst.org.nz/conference.asp

OCTOBER

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

NOVEMBER

JUne 29

JULY 28-31

AUGUST 9

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

SEPTEMBER 2

ENVIRONMENTAL PACKAGING AWARDS Auckland www.packaging.org.nz/awards/awards.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

8-12

ANUGA Cologne, Germany www.anuga.com

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 youâ&#x20AC;&#x2122;d like to be included please email: editor@fmcg.co.nz

Boost your Olive Oil sales with Borges.