FMCG AUGUST 2011

incorporating

9 421902 251016

august 2011 Volume 17 No 7 $9.15

THE BUSINESS OF MANUFACTURING • LOGISTICS • SUPERMARKETING

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Editor’s note Industry news

Features 14

10

Potatoes’ secrets peeled off Plant & Food Research and Potatoes NZ explain a scientific breakthrough

34 Postcard from New York 46 Superior space planning

contents

6 8

august 2011

Up front

Expert advice on planograms and merchandising

Category checks 18 Poultry and eggs 26 Sunscreens, self-tanning lotions, depilatory products

Regulars 12

Fresh and local In season

18

16

Beef + Lamb NZ New opportunities for beef and lamb

17 FGC Take calls for regulation with a grain of salt

24 What’s Hot New products in store

37 FMCG Online 39 Subscription form 45 GS1

The benefits of modern technology

64 Snap Spotted out and about

65 Diary

Your guide to upcoming industry events

15

OUR COVER Fujifilm NZ and Elite Sports Properties Holdings now offer a range of Rugby World Cup 2011 merchandise, manufactured locally by New Zealand companies.

contents

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

38 Profile

Looney Tunes a hit for Pure NZ

august 2011

40 Trans-Tasman food labelling Advice from the legal experts at HGM

42 Building a customer focus 43 Grocery business news 44 Three crucial conversations for leaders 46 Feature Superior space planning

Convenience store and oil channel updates

50 Feature A brave new world – without tobacco?

52 Nargon A modern approach to shopping

54 C-store industry news 55 Directory 59

56 Feature NZ wines shine at inaugural wine competition

56

59 BWS industry news 62 Keith’s take Maximising opportunities during the Cup

63 Nargon

Trina Snow considers alcohol reforms

60

TM

CEOS KNOW GLASS BUILDS POWERFUL BRANDS. “Consumers like to see what they’re getting,” says Edson Auricchio, CEO of OLÉ Foods.

“We package quality foods, and glass demonstrates that quality, quite literally.

Seeing is believing. I would say that glass is more than packaging for us, it’s a form of advertising.”

GlassIsLife.com makers of strong, bold, clearly different glass packaging

© Owens-Illinois, Inc. A gus Aug ust sstt 10 10525 1 052 525 525 25.1.

1.1 1.2 22

e ditor ’s note Vol 17

No 7

august 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 juleighb@fmcg.co.nz

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

Tackle the challenges and maximise the opportunities

Trish day – BWS Account Manager Mob 027 561 6556 trishd@mediaweb.co.nz

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

Design Cherie Tagaloa

Subscriptions subs@mediaweb.co.nz 09-529 3000 $90.00 a year (incl GST) for 11 issues Australia $150.00 Rest of the world $190.00

Printing & Pre-press PMP Print

Publisher Used on a white background

Mediaweb Limited PO Box 5544 Wellesley Street, Auckland 1141 308 Great South Road Used on a black background Greenlane, Auckland 1051 Phone 09-529 3000, Fax 09-529 3001 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.

Whether we blame bad weather, new consumer trends in developing countries, or a global food shortage, there is simply no denying that the price of our food is slowly increasing.

Over the last year (from June 2010 to June 2011) food prices in New Zealand increased 7.5%, but this includes a 2.2% rise in food prices in October 2010, when GST rose from 12.5 to 15%.

In this issue of FMCG, Beef + Lamb NZ ceo Rod Slater considers how price and perception can influence consumer choices.

Resource writer John Clarke examines seasonal trends in meat, seafood and produce, and we talk to the experts at Plant & Food Research about a scientific breakthrough that could result in potatoes with improved nutritional value and better yields.

Did you know that potatoes have more vitamin C than apples and that they are the third biggest food crop after wheat and rice?

Also in this issue, former FMCG account manager Ashley Kramer reports from New York. Ash is currently indulging his passion for travelling and writing, sending us regular updates and snapshots from around the globe (the photo above is

Tamara Rubanowski editor@fmcg.co.nz

from Times Square in New York).

While on the subject of travelling, I wonder if we are fully prepared to welcome the many tourists and rugby fans who will be visiting our shores in the next few months.

Big brands such as Dole, Fujifilm NZ Ltd and Brancott Estate have now joined the impressive portfolio of sponsors and suppliers for Rugby World Cup 2011 and there is already an enormous attraction to the World Cup in the global market place.

But are New Zealand retailers ready to tackle the challenges and maximise the opportunities associated with the events during September and October? Turn to page 62 for Keith Stewart’s take on Rugby World Cup 2011.

Better space planning in stores can help increase revenue and you will find expert advice on planograms and merchandising in our Grocery Business section.

Real-time shelf stock management systems are one example of modern technology that is enabled by next generation Radio Frequency Identification (RFID) – GS1 chief executive Dr Peter Stevens explains it all on page 45.

Enjoy this issue and please remember to send us your photos and industry news.

news Peter Gordon’s new ‘Craft Series’

Wanganui-born chef and book author Peter Gordon rose to international fame for his unique fusion style of cooking, is an Officer of the New Zealand Order of Merit and oversees restaurants in London as well as Auckland.

Now Gordon has added a new string to his bow, treating consumers to restaurant quality meals with the ‘Beehive Craft Series by Peter Gordon’, which can be cooked in the comfort of home.

The brand new products come in two variations featuring succulent chunks of slow cooked boneless pork in Gordon’s restaurant-inspired sauces. Both variants are made in the Wairarapa from 100% New Zealand pork with unrivalled flavour, lovingly developed by Chef Gordon himself.

The Beehive Craft Series by Peter Gordon Spicy Moroccan Braised Pork and Red Wine and Sage Braised Pork have been slow cooked so that only minimal preparation is needed before you can enjoy a winter feast at home.

“I wanted to take the Beehive Craft Series by Peter Gordon to the next level and provide an innovative way for people to think about cooking with pork, beyond pork chops and roasts. These new products offer home cooks the promise of a delicious, slow cooked, hearty winter meal without the hours of preparation and cooking time that it usually entails,” says Gordon.

“A casserole dish and 30 minutes is all you need. Serve simply with vegetables, over rice, couscous or mashed potatoes.”

The initial launch of the Beehive Craft Series by Peter Gordon was the first step in a journey for Premier Beehive

8

FMCG AUGUST 2011

to create more adventurous serving suggestions using pork.

For the first release, Gordon crafted five unique 100% New Zealand pork products: Juicy Smoked Bacon Lardons, Maple and Nutmeg Middle Bacon, Honey Soy Marinated Pork Ribs, Cajun Spiced Marinated Pork Ribs and Twice cooked, Five Spiced Pork Belly.

The new Beehive Craft Series by Peter Gordon Braised Pork is available in all good supermarkets in the North Island from mid-July (RRP$12.99).

Premier Beehive NZ is a New Zealand owned and operated ham, bacon and small goods company, proudly delivering true craftsmanship and natural ingredients such as natural wood smoking, premium meat cuts and preservative free white clover honey from Canterbury. The company’s focus is on presenting premium quality products, free of gluten, soy and MSG. Premier Beehive was established in June 1991 and has grown into a national household name with trusted brands including Beehive, Premier, Freedom Farms and Medallion.

The company services retail and hospitality markets through a nationwide distribution network, supplying the whole country from the small Wairarapa town of Carterton.

Premier Beehive is also the exclusive licencee for Freedom Farms smallgoods, responsible for manufacturing and distribution throughout NZ. Freedom Farms’ range of products is made from meat supplied from free range, SPCA approved farms in the South Island. l

New ceo for Fonterra Fonterra has announced the appointment of Theo Spierings as its new ceo.

Spierings, who led the Dutch farmer dairy cooperative Royal Friesland Foods into a merger with Campina in 2008, will take over from Fonterra’s departing ceo Andrew Ferrier, effective September 26. Ferrier announced his resignation from Fonterra last March.

Fonterra’s chairman Sir Henry van der Heyden said Spierings would bring to Fonterra 25 years of knowledge of the global dairy industry. “Mr Spierings has a wealth of experience in managing dairy businesses across Asia, Latin America, Africa, the Middle East and Europe,�

Sir Henry said. “Most importantly, Mr Spierings has an in-built respect for the cooperative structure and for farmers and their commitment to cooperative principles. He is well recognised by

his peers for his people leadership, delivery of results and strong strategic skills.�

Spierings was acting ceo of Royal Friesland Foods when he presided over all aspects of its complex and highly sensitive merger with Campina. He left the company shortly after completing the merger as, prior to the transaction, both parties had already agreed on an independent ceo to take the new entity forward.

Sir Henry said as well as a 25-year history in the global dairy industry, Spierings had held a variety of general management, operations and supply chain and sales and marketing positions across a number of geographies.

Spierings said the role of ceo for Fonterra was a great opportunity, working in the industry he loved. “I am honoured to be invited to lead Fonterra into its second decade,�

Spierings said. l

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Fonterra drops butter and cheese prices Fonterra Brands New Zealand has confirmed that it will reduce butter and cheese prices in August in line with international price decreases.

Fonterra Brands managing director Peter McClure said: “Butter and cheese prices in New Zealand increased in April, however, since then international prices have dipped and we will see these decreases flow through to consumers from next month. “In February 2011, we announced a freeze on the wholesale price of fresh milk in New Zealand. “At this stage there are no changes planned to fresh milk prices, but

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if international milk prices drop significantly we will of course flow these decreases onto consumers.� l

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news Frucor appoints ceo

Mark Callaghan, Frucor’s new ceo New Zealand.

Frucor Beverages has announced the appointment of Mark Callaghan as ceo New Zealand. The role was previously held by Carl Bergstrom, who was appointed as Frucor’s group managing director last month.

Callaghan comes to Frucor after an extensive career in FMCG, having worked for some of the world’s leading FMCG organisations. His previous role was Melbourne-based managing director Australia & New Zealand for Cadbury.

Throughout his career Callaghan has held a number of senior sales and marketing roles.

He is currently an independent nonexecutive director for the Warehouse Group.

Managing director Carl Bergstrom said he was delighted to have Callaghan

join the business.

“Mark brings a wealth of relevant experience to the NZ ceo role, as well as strong existing relationships with the retail trade, both in New Zealand and Australia. I am confident he has the passion, energy and experience to drive Frucor’s New Zealand business forward,” he said.

Callaghan said he was attracted to Frucor as a strong and successful values-based organisation.

“I am looking forward to being part of a very healthy business, with strong brands and lots of further potential for growth. I am keen to meet the challenge of taking on the competition to increase Frucor’s strength in the New Zealand market,” he said.

Mark Callaghan takes up his new role on 1 August. l

Advertorial

Rugby World Cup 2011 merchandise available right here right now!

Fujifilm NZ and Elite Sports Properties Holdings are proud to offer a range of Rugby World Cup 2011 merchandise.

All products in the range have been manufactured locally by New Zealand companies. These range from bumper sticker to posters, from sticker activity books to button badges.

The posters come in two different boxes with 30 posters in each. The first box features the official tournament poster, with all teams represented. The second box has three Maori designs, 10 of each from artists such as Leon Kipa, Tracey Tawhiao and Piri-Hira Tukapua. This unique artwork associated with a worldwide sporting event is proving to be a real winner.

All poster boxes carry a 50% margin.

The Rugby World Cup 2011 bumper stickers come in an attractive counter top box containing 48 packs. The packs consist of three great designs and will look cool on any vehicle! Bumper sticker boxes also carry a 50% margin.

A Rugby World Cup 2011 Sticker Activity Book, also in the range, is great for the kids! Each book has a RWC2011 games schedule and fun facts about the tournament and venues.

10

FMCG AUGUST 2011

The books come in attractive clear hang-sell packaging, with board backing card and carry a 50% margin.

To finish the range there is also the old favourite: button badges, supplied with a mix of 100 badges in an attractive counter top display box with four designs. Country badges are available for different regions where certain teams are staying.

Once again with a 50% margin.

All these great products can be purchased from www.thecornerdairy.co.nz – but hurry, products are selling fast! If you spend over $200 (excluding GST) you will receive free delivery. Go to www.thecornerdairy.co.nz right now, to secure these New Zealand made Rugby World Cup products!

n ews Wattie’s “most trusted” food brand Wattie’s has been recognised as New Zealand’s most trusted food brand for the second successive year in the Reader’s Digest Survey of New Zealand’s most trusted brands.

General manager marketing Tim Skellern says that receiving this award is a privilege and is accepted with gratitude on behalf of Wattie’s consumers throughout New Zealand.

“It is fundamental to trust the foods that we eat, and being recognised as the ‘most trusted’ among thousands of food brands available to Kiwis is a real honour,” says Skellern.

“Maintaining and building consumer trust is behind everything we do – from the way we grow and source ingredients, make our foods and implement our marketing and sales initiatives in the supermarket chains.

It’s a total package.

“Quality and value are the hallmarks of the Wattie’s brand. It all starts with top ingredients, and we use local produce where possible.

Wattie’s rich New Zealand history is founded on 76 years of processing fruit in Hawke’s Bay and harvesting other food crops such as peas, corn, asparagus and beetroot around the country. Our products can be found in almost every NZ home and we have an internationally recognised reputation for Kiwi product innovation.

“Awards such as this remind everyone at Wattie’s of our shared responsibility for consistently delivering quality food that really is at the very heart of meals Kiwis love,” says Skellern. l

Wattie’s general manager marketing Tim Skellern.

AUGUST 2011 FMCG

11

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

PRIME The first whitebait and scallops – YES!!

Plenty of winter fruit: lemons, navels, and mandarins.

Kiwi kiwifruit and cherimoya. The first new Hass avocados and the last expensive tamarillos.

The traditional winter vegetables are still going strong this month: yams, parsnips, carrots, Jerusalem artichokes and the best Brussels sprouts.

SHOT TO BITS Bluff oysters.

SEAFOOD Blue cod Now is the time for this beautifully flavoured if delicate white fish.

Dory (black and smooth, mirror, in other words all deep sea Oreo Dory family). These are often quite good buying, and are worthy of attention.

Gurnard Always available and in the market at a very good price. Lovely fish you can’t afford to ignore.

Moki (Blue and Silver) The season for this beautiful fish is under way and this is a very good option at this time of year; reasonably priced too.

Mussels (New Zealand Greenshell) This is our endemic mussel and a very fine thing it is. We see so many now that we tend to take them for granted; well don’t. It is the best value shellfish available and has a very high meat-to-shell ratio, higher than any other. It is always available live in the shell and fresh or frozen on the half shell.

Tuna This is the start of the season for the northern bluefin tuna, but you will not see many of these giants in our market (it has the highest fat content so it all goes overseas). Most of the tuna we see here is big eye tuna from the Fiji area, although there are also a few yellowfin on the market.

Look out for the first whitebait and scallops coming soon.

MEAT Mixed messages on prices for New Zealand red meat over the next month. Sorry again guys, but long term it looks like high costs.

The lamb schedules are still on an upward spiral. Export lamb is at a premium as overseas buyers seem to

have cottoned on to the remarkable quality of our high-end chilled lamb cuts. With this in mind, and the dire shortage of stock going through the works, our customers are just going to have to pay what the rest of the world is prepared to pay.

Last month lamb reached dizzy heights, with some ewe lambs averaging $190 and one pen topping $260 in one small local sale.

The trend is rising. And at 717c/kg average it is 214c/kg ahead of last year.

Mutton prices also are still breaking all records and you may wonder why – just not enough sheep in this country I am afraid. Last month a capital stock mob of two-tooths brought $310 (yes, that is each) and five-year ewes (that’s old) well over $200!

Beef The world beef market is operating in a supply environment that has declined for the past four years. This means in general terms continued high prices in the foreseeable future. But at time of writing the high Kiwi dollar, a US market reluctant to pay higher beef prices and consumers increasing chicken consumption, all mean that export schedules have eased from the autumn highs.

Local trade schedules and prime steers at the saleyards are steady, as the mild June weather has kept supplies and prices in equilibrium.

Do not expect it to last, chains are about to close for winter and the cup is coming. Expect shortages and a strong market.

Farmed venison schedules are steady, but are predicted to rise to levels way above last year in the spring peak period as plants start up

again, ready for the spring chilled harvest. Demand for farmed deer meat is strong and supply will be restricted with the low hind numbers.

So with low supplies predicted (though not as bad as last year) the traditional summer fall in prices may not be as great this season as usual.

Still, with the price of sheep meat, I would be looking very hard at putting more venison on display.

FRUIT Apples All the New Zealand seasonal apples are still good quality, so in my opinion we still don’t need any imported ‘rubbish’ quite yet.

However, Royal Gala will be about done soon and all the other New Zealand apples will effectively be gone by the end of October.

Avocados The old season’s fruit is still around, but these have just about done their dash. The first new season Hass and Hayes (pebbly skinned), our best avocados, start to come on stream late this month.

Citrus This is the time for our local citrus varieties. Tangelos will be the best buying from mid to late September and keep an eye out for the Navelina, an orange out of Gisborne that’s been around for about five years now. It has a good large, even shape and is available from July to November.

There will be plenty of well-priced navels around from now on.

Lemons and limes will be arriving in better quantities also.

Mandarins are still going strong. The Clementine variety started in early July and the Satsuma were a bit earlier in late May early June. Expect them to peter out by the end of September.

Kiwis Push out our Kiwifruit as the main crop is in full swing and prices remarkably good.

Mangosteen Here is a fruit we don’t see that often, but recently there have been a few in the market from Thailand. They may seem a little

expensive but are worth a try.

Persimmons will be around for a while.

Strawberries Keep an eye out for the first New Zealand strawberries which will arrive in a month or so.

It seems this fruit hits the market earlier each season.

VEGETABLES With the flow-on effect from the recent bad winter weather, predictions for this period are for supply to improve a little but prices will be somewhat higher than average.

Artichokes (globe) The very first globes (if we are lucky) will be in the markets in a month or thereabouts with supply increasing over spring.

The Jerusalem artichokes are available now and becoming more and more popular. They will be all over by October for another year.

Yams are definitely still a good option at this time of year, as are carrots, parsnips, swedes, turnips including Kohlrabi, celeriac, and main crop potatoes.

Fennel bulb, onions, and of course leeks are all in the best condition this month but good garlic is quite expensive.

/LVW RI /RFDO 'LVWULEXWRUV Zealfresh 0800 4 93253 info@zealfresh.co.nz PO Box 36495, Northcote, North Shore, Auckland www.zealfresh.co.nz/

Central Foods Ltd Tel: 0800 470070 centfdsltd@xtra.co.nz P O Box 358, Alexandra, Otago 9320

Bowmont Wholesale Meats Phone: (03) 2164721 enquire@bowmontwholesalemeats.co.nz P.O BOX 164 8 Invercargill www.bowmontwholesalemeats.co.nz

Meat Direct Wellington Telephone - (04) 4799 491 vic@meatdirect.co.nz www.meatdirect.co.nz

Firstlight Foods Tel: +64 6 878 2712 Email: info@firstlightfoods.co.nz www.Firstlightfoods.co.nz

Gourmet Direct Napier www.gourmetdirect.com FREEPHONE: 0800 737 800 EMAIL: sales@gourmetdirect.com

Ashbys Butchery 5 Michelle Rd, Wigram Christchurch PH 03 3417302 Fax 03 3417301

Bidvest Nationwide www.bidvest.co.nz

Food Chain Penrose Auckland 09-579 1880

ZZZ Q]YHQLVRQ FRP august 2011 FMCG

13

Potatoes’

secrets peeled off Potatoes come in a variety of shapes, sizes and colours.

A scientific breakthrough could soon lead to a multitude of good news for potato growers, retailers and consumers.

N

ew Zealand experts are part of an international team of scientists that has cracked the genetic code of the potato, creating the potential to selectively breed new varieties much faster.This could result in potatoes with improved nutritional value and yields as well as increased resistance to drought, extreme temperature and diseases and pests such as psyllid.

Terry Olsen, chairman of Potatoes New Zealand, which supported the New Zealand team’s work funded

by Plant & Food Research, hails the development as a fantastic break14

FMCG AUGUST 2011

through with far-reaching potential.

“It’s a great achievement and adds significantly to the range of tools we have available to us,” he says.

“Clearly the potential for breeding new potatoes is very exciting but there may also be many other benefits we have not even thought of yet.”

The potato genome sequence will reduce the 10 to 12 years traditionally needed to breed new varieties and by improving yield, help address the predicted global food shortage.

Olsen says it will enable Potatoes New Zealand to identify genome sequences which have the desired qualities at an early stage.This means scientists will be

able to target the breeding programme and reduce the number of plants screened to around 5000, achieving the end goal a lot faster.

“The traditional process of selective cross breeding to create a cultivar with the desired size, skin consistency, disease resistance, flavour and so on would usually take many generations of crosses to get the desired result,” Olsen says.

“The potato genome sequence now gives us a library of information.

We can identify genes of interest, select potatoes that have that characteristic and speed up the breeding of desired new cultivars.”

Q&A

FMCG caught up with Dr Jeanne Jacobs, one of the Plant & Food Research scientists involved in the potato genome consortium.

Dr Jacobs explains how significant this finding is.

How long did it take the team to crack the genome for potatoes?

The Potato Genome Sequencing Consortium (PGSC) was an initiative of the Plant Breeding Department of Wageningen University & Research Centre in the Netherlands.The founding members of the PGSC (including then Crop & Food Research, now Plant & Food Research New Zealand) first met in 2005. The sequencing work started in January 2006. The consortium has developed into a global consortium of 29 research groups from 14 countries over recent years. In late 2009, the PGSC released a high quality first draft sequence of the potato genome online. Since that time the PGSC has been refining the genome assembly, as well as performing exhaustive analysis and interpretation of the data to find all the genes, culminating in the publication in Nature (14 July 2011).

What’s next?

Plant & Food Research will use the genome sequence to identify genes of key interest to the potato industry – such as those improving nutritional profile, high yield, and pest and disease resistance – and use these as markers in screening seedlings in the breeding programme, reducing the time taken to deliver new commercial cultivars to market. The genome resequencing of four elite PFR potato cultivars has already been achieved and is currently being

Potato is currently the third biggest food crop after wheat and rice. expanded to other important lines.

This will give us detailed information on our own cultivars so we can target our search for cultivars with improved traits.

How significant will potatoes be in 10 years from now?

Potato is currently the third biggest food crop after wheat and rice. It is an important staple crop and as such

is rapidly increasing in importance, especially in countries like India and China. One of the reasons for this increase is that potato readily grows in a variety of environments (altitudes, latitudes, marginal lands) and uses a lot less water than wheat and rice.

Also potato is very nutritious; containing protein, vitamins and minerals. Potatoes are higher in vitamin C than apples.

Terry Olsen, chairman of Potatoes New Zealand.

AUGUST 2011 FMCG

15

b e ef + lam b

New opportunities for beef + lamb Rod Slater, CEO, Beef + Lamb New Zealand.

Beef + Lamb New Zealand ceo Rod Slater considers new research findings.

Our latest research has highlighted some interesting changes in the perception of our products and presented us with new challenges and opportunities to consider going forward.

Not surprisingly, given the current pricing situation, lamb has moved in consumers’ minds from an everyday meal to a special occasion protein while beef is perceived as an everyday protein and meal option, competing with chicken. This is reflected in the amount consumed per week. Consumers are eating an average of 2.9 meals per week of beef and/or lamb either in home or out of home.

Of this, beef accounts for 2.1 meals per week and lamb 0.8 meals per week.

While beef is seen as “relatively good value for money”, with the exception of premium end steaks, lamb is not.

Although price remains the most important demand driver for beef and lamb, sustainable production, taste and health are key demand drivers for beef and similarly, taste for lamb.

Lamb is very likely to hold its position as a “special occasion meal” and frankly, it is our job to leverage that positioning whilst also finding opportunities to get lamb onto more shopping lists, more often.

Other insights from the research (some of which came as no surprise) included: • Both beef and lamb operate within a crowded and competitive protein market place • Consumer knowledge of beef and lamb cuts and cooking is definitely a barrier to purchase • Shoppers say health and nutrition is still a significant influence in their purchasing decisions • One third of NZ consumers claim to have reduced their meat consumption • The market challenges and positioning of beef and lamb are now sufficiently distinct that there may be opportunities to treat some aspects of the domestic marketing of beef and lamb separately.

We need to develop a creative concept for a new marketing campaign that is both memorable and addresses the opportunities highlighted by the research. And, in below the line activity including digital media, we need to leverage the convenient and taste attributes of our products.

We know for a fact that our websites (www.beeflambnz. co.nz and www.recipes.co.nz) and social media are perfect vehicles for achieving this, alongside recipe books and in store point of sale material. Education remains pivotal when a lack of knowledge about our products and the specific cuts is one of the biggest barriers to purchase.

We want to revisit our entire in store presence – not an easy task as a generic marketing company – via joint ventures with our major retail partners.There are so many options available now – floor decals and ‘hyper fins’ to name but two – but the messaging needs to be right.

We’re very much at the ideas stage at the moment and we’ve asked a couple of outside agencies to develop some concepts for us.

Our thinking is, the more people involved the better (you never know where a good idea might come from) and I know, from experience, it sometimes takes a lot of brainstorming to hit on a winner; when at other times it comes in a flash.

If you have an idea or even any feedback, why not tell us?

All you need to do is visit our facebook page: www.facebook.com/newzealandbeefandlamb and post us a comment.

fgc

Take calls for regulation with a grain of salt Katherine Rich looks at meaningful sodium reduction programmes.

Often without even knowing it, many New Zealanders consume too much salt.

The average Kiwi ingests around nine grams of salt each day. In contrast, the World Health Organisation’s recommended daily intake is significantly lower at about six grams.

It is the sodium component of salt which has the potential to cause significant health problems if too much is consumed. Today many more shoppers are looking for lower salt/sodium products while food companies have been undertaking major sodium reduction programmes over a number of years.

Periodically there are demands from well-intentioned health groups for the Government to ‘do something’ about sodium levels. Last year, the Stroke Foundation called on the National-led Government to introduce mandatory salt levels in New Zealand food. Other groups have made a number of similar calls for legislative intervention. However, legislation and regulation will not create a meaningful reduction in salt consumption. Change will only come when individual New Zealanders choose healthier, more balanced diets and foods where salt, like virtually everything else, is best consumed in moderation.

Unfortunately, it seems very difficult to have a rational, considered debate about steadily reducing our salt intake. The situation is certainly not helped when critics bandy around scaremongering phrases in the hope of spooking the public and prodding politicians into action. They have called salt “a deadly white chemical”, “a dangerous substance” and even “a quiet killer”.

In fact, salt in appropriate quantities has been an important aspect of the human diet for about 8000 years.

It is an important part of the food manufacturing process for taste, texture and preservation. Saltiness is also one of the five basic human tastes.

Calls for Government intervention also ignore over 20 years of solid work by the food industry in quietly but steadily reducing the amount of unnecessary salt in food. Many hundreds of tonnes of salt have been removed from food products sold in New Zealand over recent years.

The food industry’s position has always been based on

Katherine Rich, CEO, NZ Food & Grocery Council.

Email: Katherine.rich@fgc.co.nz

common sense and honest communication.

In retrospect, we could have perhaps made more noise about the scale of salt reduction but we favoured quietly making significant changes. Our industry certainly understands the impact salt can have on human health and that is why so much work is being done in this area by food companies. Reducing the amount of salt in food can help, but it does not replace better dietary and lifestyle decisions across the board.

It must be remembered that some products simply cannot be successfully made without salt. In addition, some salt reduction programmes need to be undertaken gradually as people’s taste buds take time to adapt.

Reducing our nation’s salt intake is not as simple as crossing salt out of every recipe and thinking the food will be unchanged.

Salt will always have a vital role in food processing for the foreseeable future.

That noted, food companies have invested millions of dollars to reduce the salt content in a wide range of everyday foods without unduly affecting the taste customers expect. In New Zealand, a number of Food and Grocery Council members have had significant success in reducing salt levels, including Goodman Fielder Quality Bakers, George Weston Foods, Nestlé, Bluebird, Sara Lee, Kellogg, Sanitarium, Bluebird, Heinz Wattie, McDonald’s, Fonterra, Arnott’s and Hubbard Foods.

These companies have now removed hundreds of tonnes of salt from the New Zealand diet every year. There are many other companies – here and abroad – making similar reductions. Their combined efforts have had a far greater impact on reducing Kiwi salt consumption than the blunt policy instrument of Government regulation ever could.

Calls for mandatory salt levels or other restrictive legislation should certainly be taken with a grain of salt.The food industry should be applauded for its efforts over the last two decades and encouraged to make even more progress in coming years.

AUGUST 2011 FMCG

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Perfect protein

Consumers are looking for good value and convenience when shopping for eggs and poultry products. FMCG talked to some of the stakeholders in the industry about current trends in these categories.

N

ew Zealanders consume 85 million dozen eggs a year, which equates to 231 eggs per person, an average of 4.4 eggs per week*.

In August 2010, Eggs Inc, the group tasked with marketing eggs at a category level on behalf of the wider egg industry, invested in a significant piece of consumer research, qualitative and quantitative. The objective of the research was to gain a clear understanding of consumer attitudes and usage of eggs and the most effective strategies to drive continued long-term growth of egg consumption.

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FMCG AUGUST 2011

Research confirmed that New Zealanders love eggs – they are an essential, staple item.

Eggs Inc marketing manager Kate McHardy explains: “Eggs are seen as versatile, convenient, nourishing, simple and natural, and quick and easy, but people need reminding and inspiring and they are unsure about how many eggs they can eat in a week. The focus of the new campaign ‘I love Eggs’ is to increase knowledge of how to quickly and easily enjoy eggs and to grow awareness of the health/nutrition benefits and consumption guidelines.”

A new TV campaign features The Egg Guy and Egg Boy (pictured) demonstrating quick, family friendly recipes with some new ideas (microwave scrambled eggs) and some old favourites (bacon and egg pie).

This is supported with a new website, www.eggs.org.nz, a facebook page, new merchandising material and a schedule of demonstrations at provincial A&P shows and other events.

McHardy says: “On average Kiwis enjoy four eggs a week. We have six great reasons to grow this to six eggs a week.

poultr y and eggs “Research confirmed that New Zealanders love eggs – they are an essential, staple item.”

THE BREAKDOWN Current MAT to 19 Jun 2011 From L to R: Canter Valley free-range chickens; Frenz’s free-range chickens; Canter Valley free-range turkeys.

1. Eggs have the highest quality protein of all foods.

2. Eggs contain over 11 different vitamins and minerals.

3. Eggs are a source of Omega 3 and important antioxidants.

4. Convenient, versatile food for all ages and lifestyles.

5. Good value, easy to cook and yummy.

6. Research supports inclusion of around six eggs a week as part of a healthy balanced diet (www.nutritionfoundation.org.nz).” *Source NZ census data and industry production estimates, March 2011.

Organic and free range EcoEggs was incorporated in 1993 by managing director Mike Schellkes making it one of the oldest and today the largest free-range and organic egg supplier in New Zealand.

As a personal interest, Schellkes had produced free-range eggs from backyard chickens for many years.

Based on his original production standards, a network of individually contracted producers was established nationwide. Today they form the production base for the company’s cottage-type specialty eggs.

A similar network of contracted

Total Eggs: $144.958m Value % Chg vs YA 1.6 Total Standard: $95.228m Value % Chg vs YA -1.7 Total Free Range: $40.503m Value % Chg vs YA 6.8 Total Barn: $7.536m Value % Chg vs YA 22.9 Total Organic: $1.690m Value % Chg vs YA 0.6 Total Other Speciality: $1119 Value % Chg vs YA 2000.7 Total Frozen Poultry: $108.928m Value % Chg vs YA -0.9 Total Processed Chicken: $44.799m Value % Chg vs YA 7.6 Total Whole Chicken: $32.931m Value % Chg vs YA -10.1 Total Pieces Chicken: $25.704m Value % Chg vs YA -0.6 Total Whole Turkey: $3.929m Value % Chg vs YA -1.8 Total Processed Other Poultry: $1.021m Value % Chg vs YA 1.4 Total Pieces Other Poultry: $230,846 Value % Chg vs YA -28.8 Total Whole Other Poultry: $312,788 Value % Chg vs YA -27.8 * Nielsen New Zealand ScanTrack (Databank)

AUGUST 2011 FMCG

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distributors across the country soon started to supply most retail outlets, as well as eggs in bulk to the hospitality and food-processing industries.

An increasing number of the company’s eggs today also get exported.

In 1999 EcoEggs helped the SPCA to create its free-range egg production standards and today the company takes pride in the fact that it has been involved in cage egg production. EcoEggs remains committed to the environment, the welfare of animals and the production of healthy and nutritious farm fresh foods free of artificial supplements.

The EcoEggs product range includes: * Free Range Eco Eggs – produced on cottage type small scale family farms.

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FMCG AUGUST 2011

* Organic Bio Eggs – produced to the AsureQuality organic free range standards. * Animal Welfare Food Free Range Eggs – available in an affordable dozen pack.

New products recently launched

by EcoEggs and now available in economical dozen packs include: *Organic Bio Eggs AsureQuality certified. * Export Quality Barney’s eggs. * Barney Dozen Pack.

Independent eggs Independent Egg Producers Cooperative is a national egg supplier made up of several regionally-based owner/operator farms specialising in the production and supply of quality, fresh eggs. A central office handles national agreements, administration, marketing and promotional activities.

General manager Susan Bamfield explains: “The co-op specialises in supplying the supermarket trade and has invested heavily to ensure that all product complies with current legislation and food safety requirements.

Each of the farms operates under a registered Risk Management Programme.The company prioritises supermarket customers in all activities including frequent merchandising and offers of surplus product when available.”

Independent Egg Producers

Co-op offers a complete range of eggs including cage, free range, barn and organic. Bamfield adds: “The company’s group brands comprise 26% and 22% market share of TKA by volume and value respectively (Aztec MAT to 3/07/11) and we are also a key supplier of private label.”

She says: “The key performing brands are Morning Harvest (cage eggs), New Day (free-range and barn product) and Sungold (freerange organic). Over the past nine months, the company has successfully re-launched its key brand ‘Morning Harvest – Mighty Fresh, Mighty Good’ with eye-catching new packaging, supported by point of sale and a user-friendly, informative website. The re-launch has been well received by consumers with volume growth of 7% (MAT 3/07/11).”

Bamfield comments: “Whilst the total egg category continues to show modest growth (+3% and +2% by volume and value respectively), cage eggs remain dominant, comprising 79% and 63% share by volume and value respectively.The ‘free-to-range’ sector (includes free-range and barn eggs) continues to outperform the market, with the New Day brand consistently one of the top selling brands in this sector.”

She adds: “In the current economic climate, consumers continue to recognise eggs as an affordable

poultr y and eggs

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:<<H yet nutritious alternative to more expensive proteins. The recent work undertaken by Eggs Incorporated (the generic marketing arm of the NZ egg industry) has reinforced this message, providing an eye-catching TV and online campaign focusing on the â&#x20AC;&#x2DC;scrummyâ&#x20AC;&#x2122; and nutritional benefits of eating eggs. â&#x20AC;&#x153;In addition, consumers are increasingly looking to source â&#x20AC;&#x2DC;localâ&#x20AC;&#x2122; products supporting local communities, and thus Morning Harvest and New Day eggs, produced and supplied regionally by dedicated, hard working and enthusiastic poultry farmers are well positioned to meet this demand.â&#x20AC;?

first time to New Zealand the Compassion in World Farming â&#x20AC;&#x2DC;Good Egg Awardsâ&#x20AC;&#x2122;. â&#x20AC;&#x153;Humane Farming is the top food trend for 2011.The SPCA Blue Tick has gained a lot of media and celebrity chef support since our official launch in October 2010 due to this,â&#x20AC;? says Banks.

The SPCA Blue Tick is the only independently audited scheme of its kind in New Zealand. Banks explains: â&#x20AC;&#x153;It guarantees that the food you are purchasing is humanely farmed, by a brand you can trust. The SPCA has standards for free-range eggs, barn eggs, free-range pigs, free-farmed pigs and free-range poultry.â&#x20AC;?

Humane farming

Tegelâ&#x20AC;&#x2122;s offerings

SPCA National accreditation and marketing manager Juliette Banks told FMCG: â&#x20AC;&#x153;Our brands include Henergy Eggs, Sunset Free Range Eggs, Freedom Farms, Harmony, Benniks Barn Eggs and Kirkfield Free Range Eggs.â&#x20AC;?

She adds: â&#x20AC;&#x153;In May we released our new Free Range Poultry Standards.

We are currently waiting for New Zealand poultry companies to adhere to our high welfare standards and join the scheme. Consumers can help by requesting this directly with supermarkets and their preferred poultry company. â&#x20AC;&#x153;We have also brought for the

The Tegel range includes frozen and fresh products, such as Rangitikei Corn-Fed Free Range Chicken.

Marketing manager for fresh products, Brenda Galbraith, highlights recent launches: â&#x20AC;&#x153;In the butchery

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AUGUST 2011 FMCG

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section we launched Fresh Tenders in two flavours – a delicious Thai Curry and Satay. The tenders are put onto small appetiser sticks, which make them convenient to handle and eat. Consumers love the flavours and the versatility of them, serving them as snacks, on the BBQ or for a main meal.

In the freezer we launched two fantastic extensions in our Cuisine range: Crumbed tenderloins and Satay tenderloins. Both are succulent and tender, one is in a crispy crumb and the other is coated with our popular Satay flavour. These products have widespread appeal offering convenience, taste and perfect portion size.”

She adds: “The tenders were launched in October last year, perfect timing for summer sales. The new products have delivered excellent quarter on quarter growth, as measured by Aztec scanned sales.The new tenderloins in the Cuisine range have also performed well, delivering great volume growth as measured by Aztec.”

Galbraith says: “We have a few product launches and re-launches coming up over the next few months across all the poultry categories in the supermarket. We are always working on delivering great products and ideas for chicken that everyone will ask for and enjoy.”

She adds: “Consumers are looking for taste and flavour – they want inspiration and good food. They also want value in their purchase and increasingly consumers are looking for convenience options that may save them effort and time.”

22

FMCG AUGUST 2011

Canter Valley Canter Valley is based in North Canterbury where it hatches and grows its barn-raised gourmet poultry products with a small number of hand-selected contract growers.

“As a family owned New Zealand business we are concerned with our environment and strive to make sure we are managing our business and resources with a focus on sustainability and responsibility,” says marketing manager Kathy Guard.

“Customers know they have made a quality choice when they buy our products and we have launched new products and initiatives in the last few months as part of the continued development at Canter Valley,” says Guard.

She explains: “To complement our other duck products, we have the new improved Canter Valley smoked duck breast, a fantastic product with a simply divine flavour. We also have turkey mince, packed conveniently in a 400-gram vacuum pouch. This healthy, dark, high protein, low fat, versatile product can be used many different ways and can be found in some New World Supermarkets fresh, in other delis and butchers, or purchased directly from us. We have found this to be a popular product due to the taste and low fat content.

Fresh turkey is also available every week of the year in both whole birds and portions.”

Canter Valley is currently working on becoming FREPA certified with its free-range turkey. Guard says: “Our goal is for all our turkey to be free range within the next two years. Consumers are very keen to see free range in the

market and we get numerous requests.”

Canter Valley Free Range Corn fed chicken comes in a 3kg size.

Guard says: “The superior texture and flavour are at the top of the class – the ideal treat to impress at a dinner party. We also have the breast and thigh cuts from these birds.”

Canter Valley also supplies quail eggs and quail, poussin and occasionally pheasant, goose and Guinea fowl.

Guard adds: “All our products are slaughtered Halal. Our Risk Management Programme is compliant with the NZFSA (MAF) and WQA food safety programmes.”

Waitoa free-range chicken “Demand for free-range chicken continues to go from strength to strength in New Zealand,” said Jonathan Gray, Waitoa sales manager.

He adds: “Customer demand for our Waitoa free-range chicken products has more than doubled during the past 12 months alone.We are excited about the growth in this category and will continue to invest and strongly support the development of our free-range offering.

“Our research indicates consumers are often choosing free range for meal occasions, and that a quarter of New Zealanders are eating free-range chicken at least monthly,” says Gray.

For more commentary and updates in the egg and poultry categories visit fmcg.co.nz/ features/category-reports

What’s Hot NEW FROM THE PERFECT FRUIT COMPANY

Dragon Phoenix Coconut Spread (Kaya)

We created the Vocado brand as our promise to produce 100% Kiwi avocado-based products that are healthy, delicious and convenient to use. This dedication to quality, coupled with our breakthrough and innovative packaging, means Kiwis can enjoy fresh avocados, and the nutrients they pack, year round and for any meal or snack occasion.

Kaya, also known as coconut spread or coconut jam, is very famous in South East Asia. Spread it on hot toast – it is as traditional as the English eating marmalade or Kiwis eating strawberry jam. Caucasians often come across it in large hotels with buffet breakfasts, as it is often served on hot waffles and topped with whipped cream. Dragon Phoenix Coconut Spread comes in a 400g jar and is packed in cartons of 12.

100% dairy and gluten free, the new Vocado avocado range includes: Avocado Pulp (200g) Avocado Guacamole (200g) Avocado and Manuka Honey Smoothie (250g) Avocado, Orange and Honey Smoothie (250g)

What’s Hot

Visit www.vocado.co.nz Ph (09) 368 7326 or email info@vocado.co.nz

DVD Rental Kiosks

dine in with delmaine

DVD Kiosks are well established in North America and are more popular than traditional brick and mortar stores.

DVDNow Rental Kiosks represent a ground floor opportunity to establish a Movie & Game rental business to your existing business without taking up valuable floor space or taking your staff away from their core duties while driving repeat customers back to your business. For more information contact us today.

Delmaine have added two fantastic new products to their family meal range. Made fresh with quality ingredients, these meals offer convenience while retaining their authentic taste and appearance.

Traditional Cottage Pie – Savoury beef mince and garden vegetables in a rich gravy topped with mashed potato; a classic New Zealand family dish.

Greek Moussaka – An authentic Greek delight made with fresh lamb, seasoned with a range of traditional herbs and spices, served on grilled eggplant and topped with béchamel sauce.

Located in the chilled meal section with Delmaine’s Beef Lasagne and Spinach & Ricotta Lasagne.

Hosting and sales enquiries: Mobile: 021-686-149 Email: info@dvdnowkiosks.co.nz Web: www.dvdnowkiosks.co.nz

24

For more information on Dragon Phoenix Coconut Spread please contact: Oriental Merchant Pty Ltd Tel 0800 10 33 05 Fax 0800 10 33 11 Email: nzenquiries@oriental.com.au Website: www.oriental.com.au

FMCG AUGUST 2011

What’s Hot for bird control in warehouses

NEW READY SAUCES FROM LEE KUM KEE

Amazing new repellents registered in NZ and approved

by AsureQuality for use around food processing.

Following the continued success of the Lee Kum Kee Ready Sauces, they are delighted to add two new delicious flavours to their range.

Cantonese Stir-Fry Beef gives your customers an easy way to prepare this popular and incredibly tasty oyster sauce based dish.

While Honey & Soy Stir-Fry Chicken is simply delicious and sure to become a firm family favourite!

Phone us today to request your copy of our new BIRD-FREE BUILDINGS brochure.

www.pestgard.co.nz

AVAILABLE NOW from ACTON International Marketing Ltd, 0800 699 090.

Mr Grill’s Beef Snacks

What’s Hot

New to the snack market is Mr Grill’s range of dried beef snacks. With 7 exciting products there’s something for everyone. Made with 100% prime NZ meat and marinated with our own spices and packed in a 90g re-sealable pouch, with no added preservatives, it’s not surprising why these are proving popular with all ages. These products are a perfect source of iron and protein while on the run and especially good to snack on while watching the game. We are currently looking for distributors in the Waikato and Wellington area.

For more information and to stock these products: Contact Andrew on 021-300 560 or andrew@mrgrills.co.nz www.mrgrills.co.nz

AUGUST 2011 FMCG

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Get ready for summer!

The days are getting longer and summer is nearly here – a time for retailers to check that sufficient sunscreens, depilatory products and self-tanning lotions are in stock.

D

id you know that it is not the sun’s heat that burns but UV radiation – and that sunburn is linked to melanoma, which kills about 250 Kiwis every year?

The Cancer Society’s Sun Smart school programme is gaining effectiveness, as the consumption of Sunscreen continues to grow in New Zealand. To qualify for the Cancer Society’s Sun Smart school programme each classroom must have access to sunscreen, each child must wear a hat in the sun, all play areas must be shaded and each child must have a presentation on the dangers of the sun. This currently reaches 102,000 children. Programmes like these help protect the future of New Zealand.

Educational campaigns such as Sun Smart place importance on the use of 26

FMCG AUGUST 2011

sunscreen as a major part of a daily sun-care routine. This routine should also include, staying out of the sun between 11am and 4pm, using shade when possible, covering up with clothing and a hat, protecting eyes with sunglasses and keeping infants out of the sun.

It is also important to use the correct amount of sunscreen. An average sized adult should use one teaspoon on each arm, leg, front of body and back of body, and ½ teaspoon to the face including ears and neck. Sunscreen should never be used to extend the time you spend in the sun.

The Cancer Society Sunscreen is distributed by Brand Support and a company spokesperson told FMCG: “The previous Sun Care season (September ’10 to March ’11) has experienced record market growth, with Total Sun Care excl

sunscreens, self-tanning lotions & depilatory products

Lip/Tan growing at 22.6% to $13.6 million (Aztec). The 2011 season had a very early start with daylight saving brought forward and major accounts activating their promotional programmes earlier than prior seasons. The key to a successful 2012 season from both an account and brand perspective will be the same early execution of promotional programmes as well as achieving distribution targets of both new and existing lines. The traditional start to our Sun Care season is no longer Labour weekend.

“We look forward to continued growth in the sunscreen market as this will in turn result in saving of lives.”

Le Tan Le Tan is a one stop shop. With an offering across the Sunscreen, After Sun and Self Tanning segments, there is a product to meet all lifestyle needs. According to Le Tan brand manager Hannah Smith, “Le Tan is the brand for ‘Fun in the Sun’!”

Le Tan continues to be the official sunscreen of Surf Life Saving New Zealand – proud to be protecting the

Surf Life Savers who keep us safe on the beaches over summer and supporting communities across the country.

Smith says:“After just two seasons of sitting under the BDM Grange stable, Le Tan has retail sales over $1 million with our hero product, the 1 Litre pump pack ranked #11 in Total Key Accounts, #2 in Pak’nSave Auckland and #2 in Pak’nSave Wellington* and targeting a continued rise in rankings this coming season.

“Le Tan is introducing some very exciting and innovative new products for the 2011/12 season – Zinc

THE BREAKDOWN Current MAT to 19 Jun 2011 Total Shaving & Depilatory Needs: $60.368m Value % Chg vs YA -0.9 Total Shaving Preparations: $10.056m Value % Chg vs YA -2.1 Total Disposable Razor Male: $7.752m Value % Chg vs YA 1.2 Total Razor Blades Male: $20.858m Value % Chg vs YA -1.2 Total Disposable Razor Female: $4.379m Value % Chg vs YA 17.2

* Nielsen New Zealand ScanTrack (Databank)

Total Depilatories & Accessories: $5.049m Value % Chg vs YA -0.2 Total Razor Blades Female: $4.910m Value % Chg vs YA -4.8 Total Razor System Male: $3.721m Value % Chg vs YA -10.9 Total Razor System Female: $3.585m Value % Chg vs YA -1.3 Total Double/Single Edge Blades Male: $57,909 Value % Chg vs YA -27.9

Total Sunning Preparations: $19.190m Value % Chg vs YA 16.4 Total Lipsalves: $4.526m Value % Chg vs YA 4.7 Total Sun Screen Preparations: $13.909m Value % Chg vs YA 22.7 Total Aftersun/Sunburn Remedies: $537,649 Value % Chg vs YA 24.9 Total Artificial Preparations: $216,793 Value % Chg vs YA -31.1 Total Suntan Preparations: $286 Value % Chg vs YA -99.6

AUGUST 2011 FMCG

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Sticks and Coconut Oils. SPF30+ Zinc Sticks adding extra high protection will make any day at the beach fun and colourful with fluoro blue, yellow or green and white. Coconut fragranced, protective oils, available in SPF 4, 15 and 30+ provide a formulation that protects, hydrates and nourishes your skin to help prevent peeling and dryness.”

Smith adds: “Le Tan Self Tanning is the #1 Tanning Brand in Australian Grocery**. The New Zealand Grocery tanning market is very much underdeveloped in comparison to Australia. New Zealand consumers are still very accustomed to purchasing tanning in other non Grocery channels, which represents a huge opportunity to Grocery retailers.

“There is a self tanning product to suit everyone, from the confident experienced tanners to the novice just starting out. Le Tan in Le Can is a salon quality, instant, long wearing airbrush tan with a gorgeous vanilla fragrance, while Flawless Legs is a wash off makeup that disguises leg imperfections and provides natural bronzed, smooth flawless legs. Le Tan is bringing affordable price points to the Grocery channel.” * Aztec NZ 6 months to 31/03/2011 **Nielsen AU 6 months to 13/03/2011

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FMCG AUGUST 2011

Banana Boat sunscreen category and will be spending above Banana Boat was launched last summer by Energizer NZ and offers a great range of suncare products designed for active outdoor families in the General Protection, Baby, Kids, Sport and After Sun segments.

Banana Boat brand manager Anita Vallabh told FMCG: “We are extremely pleased with our first season’s performance; achieving 9.1% value share within the sunscreen segment (Aztec Grocery Value Sales, summer 10/11, w/e 24/10-27/2) and being one of the top three brands in top of mind awareness (Colmar Brunton Summer 10/11 Consumer Insights Tracking Research) is a great result and gives us a great platform to build on for next summer. Banana Boat also has strong credentials to support that growth; all of our sunscreens are manufactured in Australia where Banana Boat is the leading sunscreen and after sun brand (Synovate Aztec Australia Grocery Oct 1, 2010 – March 31, 2011). Banana Boat EveryDay was recently awarded ‘Product of the Year 2011’ in the Australian suncare category (independent poll conducted by TNS of 5000 Australians).”

Vallabh adds: “Banana Boat is committed to growing the suncare

its weight in marketing support via various consumer touch points such as TV, radio, PR, online, sampling.We are proud to be the official sunscreen supplier to Triathlon NZ.” Banana Boat will be introducing three new sunscreens this season.

Vallabh explains: “Banana Boat Mineral Protect SPF30+ (Sensitive and Kids) is a clear mineral sunscreen that protects against UVB and UVA rays. Its low irritant and fragrance free formula uses physical blockers to deliver protection to delicate skin, allowing all Kiwis to have fun in the sun, worry-free! Also, with roll-on sunscreens becoming more prevalent with kids at school, mums can rest assured their kids are safer in the sun with Banana Boat Kids SPF30+ Roll-on sunscreen. Providing UVA/ UVB protection, four hours water resistance, fragrance free and easy to apply, it’s ideal for busy kids on the go.”

Nivea Beiersdorf markets the Nivea brand of sunscreens in NZ supermarkets.

Customer marketing manager Ann de Liefde says: “Last summer all brands grew sales with the long early summer in 2010, building the

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cate go r y c h e c k

category by +$2.6 million to $13.5 million.

“Nivea Sun contributed almost $1 million in category growth, and hence increased Nivea Sun #1 leadership position by +0.8pts value share. Nivea Sun now has 33.6% value share of the category, ahead of Cancer Society with 28.1%.

“Looking at the smaller brands, Neutrogena grew slightly whilst Banana Boat and Le Tan saw strong growth from much smaller bases.”

She adds: “New launches have contributed to Nivea Sun’s strong growth, delivering $960k in incremental sales to the category. All immediately entered the top 20 ranking, reinforcing Nivea as the expert in suncare for NZ families, both kids and adults.”

De Liefde says:“We launched Nivea Sun Ultra Beach Protect 150ml for

30

FMCG AUGUST 2011

NZ’s harshest sun environment – the beach. We also launched two maximum defence SPF50 products, in both a lotion 200ml and spray 200ml format. Ultra Beach is ultimate skin protection at the beach for immediate and long-term defence, with its endurance formulation including four-hour water resistance and broad spectrum UVA/UVB filters.

Its combination of UVA filters and Vitamin E help prevent long-term sun damage, and that dry and tight feeling that comes from extended hours at the beach.”

Nivea is planning to launch more new products in the next few months.

“Nivea Swim and Play SPF 50 150ml is for kids who love swimming in pools and at the beach where extended exposure to salt water and chlorine can cause their delicate

skin to become irritated. With caring panthenol to soothe stressed children’s skin, Swim and Play has SPF 50 broad spectrum filters, and strengthens skin’s barrier with fourhours water resistance,” explains de Liefde.

She adds: “Beach is king in the hot NZ summer, so Nivea is building on the successful launch in 2010 of Ultra Beach Protect SPF 30 Lotion 200ml, with its new spray 200ml format.”

She adds: “We are also re-launching our Light Feel SPF30 Lotion 125ml into a 200ml pack size. This Sunscreen is for consumers who know it’s important to use sunscreen but dislike the ‘sticky’ feeling of a sunscreen. Now with four-hours water resistance and ultra light moisturising ingredients it’s designed to feel like an everyday moisturizer.”

Sunscreen usage occasions are mainly holidays, summer days and on the weekends.

Mothers with children are more likely to use sunscreen more often through summer in the playground, in the backyard, at school, understanding the importance of re-applying sunscreen to children after swimming. Heavier usage is also on the weekends and holidays when children are more susceptible to sun damage – swimming at the beach or pool, and playing outside.

The months leading up to summer are crucial in engaging shoppers who only purchase two to three bottles of sunscreen per year. Display impact in October will really set up good sales for supermarkets in the lead up to summer.

Source: All data from Nielsen (26 weeks data to 27 March ’11).

Lip care Whilst it is important to take daily care of our lips to prevent chapping and moisture loss, it is also very important to protect lips from the sun.

Wilson Consumer Products assistant brand manager Sara Williams explains: “Blistex lip care range provides not only the comfort of intense moisturisation on dry lips but also provides a high SPF factor in most products.”

Lips needs protection all year round and it is often an area on the body that people neglect when applying

sunscreen.When the sun causes lips to burn, long-lasting damage can occur.

When unprotected lips are exposed to too much sun, the collagen changes, causing lips to wrinkle and fine lines to form around the mouth.

Even when lips show no physical signs of the sun’s effect, damage can occur. Just because you don’t see a surface burn doesn’t mean that the underlying layers haven’t been harmed.

Williams says:“Blistex products are serious about sun protection, which is why they have an SPF of at least 15 in almost all of their balms and pot products. Other Blistex products are considered healing products that help to repair lips that have already been damaged by the elements.

Blistex Ultra Lip Balm provides the highest lip protection from the sun with an SPF30+. It not only keeps your lips looking and feeling good, but gives you the ultimate protection in summer and winter where the sun can reflect off the snow onto the face and lips.”

Marzena Marzena Body Care Products is a New Zealand owned and operated company. It conceived, manufactured and marketed the Marzena brand some 24 years ago and launched initially on the NZ and Australian markets where it shook a very ‘sleepy’ category. Research and development is an important part of the company

cate go r y c h e c k

“The months leading up to summer are crucial in engaging shoppers who only purchase two to three bottles of sunscreen per year.”

and now with over 20 international markets, consumer feedback and international user trends are a valuable aspect of new product development.

Managing director David Morpeth told FMCG: “During this time Marzena has won many product and packaging accolades and being a small proudly NZ owned company our size has permitted us to manoeuvre swiftly in the international marketplace. Marzena is distributed throughout NZ pharmacy, mass market and FMCG and with now over 20 variants to its portfolio is well positioned to match trade requests for demand of specific product types that retailers have identified in their business.”

He adds: “Over the last two years 32

FMCG AUGUST 2011

there has not been any significant unique new product development in this category; rather it’s been repackaging different delivery systems or faster treatment times. New packaging regulations have increased the responsibilities of manufacturers to be more explicit in warnings, cautions and labelling requirements, which has put pressure on complete and thorough user directions due to space limitations on labelling and packaging.”

Though younger users are a lot more savvy on their hair removal needs today than their older peers were at the same age, much of this education has been through experimentation and passing on experiences by word of mouth. Like many

FMCG products it is always a challenge to educate below the line to fast moving consumers. “Much of Marzena’s recent record sales gains have been due to education followed by traditional, but still unique, marketing mix initiatives,” says Morpeth.

He explains:“We firmly believe we know what the consumer wants and needs better than anyone else when it comes to depilatory products and we value a close relationship with a young focus group to keep ideas and aspirations flowing, and this is a good complement to the information flowing from our International Alliance Partnership covering over 80 offshore markets.”

Marzena is currently working on

sunscreens, self-tanning lotions & depilatory products

some evolutionary new product concepts and is now producing dual language packaging in Arabic and Turkish.

Morpeth says: “Ideas and concepts that are fed back from visiting these markets have applications in our home market and Australia (now not considered an export market anymore) and we can output these ideas into product launches very quickly.

We don’t have to wait round for R+D or management sign off from some overseas office to get the go ahead. We are it right here and this gives us a real advantage. We are able to produce a specific product one retailer wants that’s not available at another retailer if that’s their initiative. Who else can do that?”

New look for NAD’S Jackel ceo Caroline McIntosh says: “Aztec data shows that Nad’s is still the #2 brand in New Zealand, which is quite an achievement for a small privately owned Australian

company (Depilatory category for quarter ending 26/6/11).

The top selling Nad’s item is the Brazilian and Bikini Wax Kit, which is a hard wax and quite difficult to use. Maybe this is a reflection of the current economy and less disposable income, with women choosing a DIY option instead of going to the salon,” says McIntosh.

She adds: “Nad’s will be launching four new SKUs in Spring 2011 and will refresh its packaging. The new Nad’s packaging is modern and eye catching. With new body and face images and simple colour coding specific to each product, the new packaging is easy to differentiate between product types and stands out on shelf, making it simple to choose the right product.”

She adds: “Aside from giving the Nad’s brand a fresh, modern re-vamp on shelf, the new look Nad’s packaging, particularly with the introduction of new colours such as pink and purple, appeals to a younger target

group and women that have not used wax or hair removal creams before; in turn growing our market share.

Our aim is to continue to engage with our loyal Nad’s customers but also connect with this new younger market with the new Nad’s look.”

She adds: “In New Zealand, Wax Strips is a larger subsegment and Depilatory Creams are the second largest, while internationally Depilatory Creams are the largest subsegment. The first hair removal experience for most women will be as a teenager using Dad’s or Mum’s razor. It’s only later in life that women will discover other hair removal methods. But most will stick to shaving due to perceived practicality, speediness and immediate perfect results and no pain. Most women will use a different hair removal method for each body part and 92% of women believe they have sensitive skin. Most women suffer from ingrown hair but there is little information about treatment.”

AUGUST 2011 FMCG

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Postcard from

els r Ashley Kramer trav be em m am te G C Former FM es. arch of new adventur se in ld or w e th nd arou

B

Ashley Kramer in Times Square.

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FMCG AUGUST 2011

efore I left New Zealand, I’d heard that American food was all about huge portions, average quality and cheap prices.

To an extent, that’s spot on, but in a city as big as New York, the choices are practically limitless.

So far I’ve had a delectable Mediterranean meal, complete with well presented tiny portions. Then there were some scrumptious Thai noodles, which were served in a small bowl and there was no doubting the gourmet quality on these occasions, nor when I stopped off for lunch at a vegan Japanese place in Soho for the tastiest ‘normal sized’ Bento box I’ve had in ages.

On the other hand, there was zero chance of finishing my Vietnamese

takeaway meal in one sitting, and my first diner experience involved a proverbial massive American serving.The stack of thick wholegrain pancakes (US$6.95 + tip + tax) wasn’t quite as big as my fevered imagination had led me to believe, but throw in the condiments these pancakes were served with - two medium pottles of syrup (ie, 80 grams of liquid sugar), two tubs of honey, three of jam and four of butter - and you have a meal fit for The Hulk.

I didn’t consume all the condiments but the calorie count was way up there. Add in the plates of free coleslaw and pickles that I ate in an effort to “get some veggies with my meal” and I was ready to be rolled down 7th Avenue.

featu re

New York

After that lot, we just had to stop off at Cinnabon to try their tiny sweet buns drenched in icing. So is it any wonder I ate nothing but fruit until evening?

Dinner was a delicious veggie burger but the â&#x20AC;&#x153;sideâ&#x20AC;? of fries was easily enough for two, while a falafel in pita that I had at a kosher place was cleverly constructed for maximum calorie content.You keep your salads separate while the nice Venezuelan guy behind the counter fills a big pita pocket to the brim with hummus, falafel and tahini - hey presto, twice the serving size and double the calories.

After the aforementioned pile of pancakes, I found myself in Whole Foods on 7th Avenue, which has to be the best health food store in AUGUST 2011 FMCG

35

feat u re

“A little shop selling candy just wouldn’t do in The Big Apple, so M&M’s World is a three-storey house of sweet worship.” existence. Locals call the chain “Whole Paycheck” because the prices aren’t cheap but they do stock everything healthy known to man. In an effort to detox from the hit of carbs and fat, I contemplated the extensive drinks section and settled on a bottle of GT’s Enlightened Organic Raw Kombucha.

It’s brewed by a guy called GT Dave, who may or may not be the creation of a corporate marketing department.

The ingredients are Organic Raw Kombucha (a fermented tea), bluegreen algae, spirulina, chlorella and “100% pure love!!!”.

If the measure of a medicine’s effectiveness is how bad it tastes, then this flavour is the universal cure all. Think vinegar, onion juice and water from Dave’s never been cleaned Beverly Hills swimming pool and you have it – but that said, despite the taste, I’ve had a bottle every day because I feel great after drinking it.

Unfortunately, other local drinks have fallen flat. First up was a “small” (yeah right) Cherry Coke.

I’d been walking for hours, was hot as a waffle iron and needed cooling. Unfortunately, Cherry Coke has a mean chemical aftertaste and I wouldn’t use it for washing socks, which may well be how it’s made.

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FMCG AUGUST 2011

Next was Dr. Pepper - the falafel deal at Chickpea in Penn Station is $5.45 for just the falafel in pita or $5 including a can of soda. I’m really glad that I didn’t have to pay for that red can of flavourings. As they say over here “this dang stuff ain’t no damn good”!

That same night, a stroll just happened to lead us into Times Square.

The area was absolutely packed, at 10.30pm, on a week night. Packed as in Auckland Lantern Festival packed for those of you from way down under.

The force is strong with this place, or perhaps that should be the Dark Side because the multitudes flock here en masse.

Times Square is one of the global hubs of consumerism, a perfect advertising vehicle, where the public come to be entertained… by the ads.

It’s a work of genius because there’s no movie to keep them happy, no magazine or newspaper built around the ads to add value, just the naked power of the glitz and sheen. It obviously works like a dream because people were standing around basically absorbing everything they saw like a horde of dry sponges.

On one level, I can’t stand it and want to spew, but then again, I sell ads for a living, so forgive me my cynicism. On

another level, I hate to admit that I’m just as entranced as everyone else and while I may vow not to be affected by the show, I sure as hell have the likes of Samsung, Barclays and Toshiba on my mind today, not to mention a strange desire to see a musical; perhaps one about a lion or a nun.

Ugh, the power of the billboards has wormed its way into my subconscious!

My visit to M&M’s World was a serious eye opener. A little shop selling candy just wouldn’t do in The Big Apple, so M&M’s World is a three-storey house of sweet worship. It’s filled with everything that could possibly have an M&M’s picture or logo on it, from dispensers, key rings and toys to underwear (yes, really). It’s a little over the top, but when in New York…

At least I managed to refrain from buying any memorabilia or bags of M&M’s by the pound.

It’s going to take a diligent application of discipline to get through three months of this without gaining 25 kilos.

Ashley Kramer is a salesman by trade, but he’s cunningly figured out a way to indulge his passions as a freelance journalist in the consumer technology space covering the gamut from hi-fi and home theatre to gadgets, cameras and computers. His latest foray is in the areas of travel and food writing.

@

Whatâ&#x20AC;&#x2122;s online

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

Heritage Centre for Marlborough Which New Zealand wine brand is proud to announce the impending opening of a state of the art Heritage Centre located within a historic vineyard? We reveal the details online.

Books of the month

New age retailing

Despite Kindle and ubercool iPads, editor Tamara Rubanowski still likes to indulge in a good old book occasionally. You will find her recommended reading on fmcg.co.nz/features/opinion

Could supermarket checkouts soon be a memory from the past? Keith Stewart takes a close look at new technology in his feature article on fmcg.co.nz/features/infocus.

How to tweet

Anuga exhibitor list now online

Millions of tweets are now sent out every day and with more than 20% of the tweets being related to products and/or brands, this means that every day an estimated 28 million tweets could potentially concern your brand or company. How can you use this microblogging sphere to engage with your target market? IMD research fellow Willem Smit explains it all online.

The 31st Anuga, which will be held in Cologne from 8-12 October 2011, is expected to attract around 6500 suppliers from about 100 countries.

The trade fairâ&#x20AC;&#x2122;s website includes a list of exhibitors taking part in Anuga 2011, which is updated on a daily basis. Visit fmcg.co.nz/ feature/tradeshows for more information on this significant industry event.

PL US

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

Looney Tunes a hit for Pure NZ Pure NZ has scored a major coup securing the Asia Pacific distribution rights to launch a Looney Tunes branded water in a lucrative deal that will boost New Zealand’s beverage exports.

Pure NZ owners and directors Tony Vesper and Kyle Osborne.

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P

ure NZ owners and directors Tony Vesper and Kyle Osborne approached Warner Bros Consumer Products Australia and New Zealand seeing the potential for a product that would appeal to both parents and children alike. Warner Bros Consumer Products, a Warner Bros Entertainment Company, is one of the leading licensing and retail merchandising organizations in the world.

FMCG caught up with Pure NZ director Tony Vesper to find out how the new product has been received so far.

“It’s going very well - we have been listed in Progressive nationwide, Foodstuffs Auckland and South

FMCG AUGUST 2011

Island, Gilmour’s Toops and Trent’s and we are currently in discussions with a number of overseas opportunities,” says Vesper.

“Roll out is tracking well. We are looking to have nationwide store ranging with Progressive by the end of July and Foodstuffs a week or two behind that. Crossmark will be in the trade from 1st August driving both distribution and sell through.”

And has there been any feedback yet?

“The only feedback available at this stage, as it is very early days, has been from supermarket managers who are pleased with the initial sell through,” says Vesper.

What’s next for the company?

“We are working with our NPD looking to extend the range. At this stage we will be looking to launch range extensions prior to summer, these range extensions are well underway but at this stage are confidential,” says Vesper.

Parents themselves, Vesper and Osborne were convinced the global popularity of the Looney Tunes brand would transfer well in this market.

Looney Tunes, which first hit the screen 78 years ago in 1933, made famous characters like Bugs Bunny, Sylvester The Cat, Tweety Bird, Tasmanian Devil,Wile E.Coyote and Road Runner.

g rocer y busi ness: prof ile It’s these household names Osborne is sure will strike a chord with both children and their parents when it comes to choosing beverages.

The Looney Tunes 100% Pure NZ Spring Water will be sold in 400ml singles and four-packs or 1.5L bottles.

The 400ml bottle is designed especially with children in mind – small enough to fit comfortably in their hands and with a sipper to help prevents spills.

Pure NZ water is bottled at the source of specially selected New Zealand springs – a long way from Hollywood but the perfect partner for the Looney Tunes brand, says Osborne.

“We are proud to be partnering with Warner Bros with Looney Tunes, a brand all Kiwis have grown up with, this new partnership means

we can bring the family entertainment brand to a new generation of Kiwis,” says Osborne.

The managing director of Warner Bros Consumer Products Australia and New Zealand, Preston Kevin Lewis, says the company is very excited about the partnership with NZ Pure Spring Water.

“This is the first time Warner Bros Consumer Products Australia and New Zealand has aligned with a licensee who specialises in spring water. We were very impressed by the business credentials of the management duo Kyle Osborne and Tony Vesper at Pure NZ who bring a wealth of knowledge about the spring water category”.

Lewis says The Looney Tunes brand is a perfect fit for NZ Pure Spring Water’s strategy behind the product.

“The Looney Tunes Active logo is featured on the NZ Pure Spring Water range. Looney Tunes Active encourages children to eat healthy and to be active.Water is a very important part of a child’s diet and it is crucial that kids stay hydrated throughout their busy day at school,” he says.

Vesper says New Zealanders will be the first to get access to the Looney Tunes Pure NZ Spring Water with plans underway to export the product to Australia.

“We have already had a lot of international interest, so it will be exciting to see how the brand grows in the next 12 months,”Vesper says.

Looney Tunes Spring Water (RRP $1.59 for 400ml / RRP $6.19 for 4 x 400ml Multipack / RRP $1.99 for 1.5L / RRP $7.49 for 4 x 1.5L Multipack) is now available in supermarkets nationwide.

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39

Trans-Tasman food labelling Taking consumer values into account will be vital, says Mark Gavin.

I

n a recent review of Australia and New Zealand’s food labelling laws, the Blewett Report dedicated an entire section to ‘Consumer Values Issues’.

The submissions and consumer survey evidence presented to the panel indicated that consumers felt strongly about the origins of the food they buy, how it was made and under what conditions it was produced. Country-oforigin labelling (“CoOL”) is currently the only “values based” claim that is addressed in the Australia New Zealand Food Standards Code (the “Code”).

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In light of the report’s recommendations, this may yet re-spark the debate in New Zealand regarding CoOL. The food label is recognised as a convenient method to provide consumers with certain information at the point of purchase, which may influence a consumer’s choice of product based on their moral beliefs and values.

The adoption of values-based food labelling is not advocated on the basis of public health and safety concern, but rather that it can provide suppliers with a positive point of difference in the market so that there is a strong

incentive to adopt such a claim and for consumers to respond.

New Zealand and Australia have taken different views on CoOL. Traditionally, New Zealand has left CoOL as a voluntary practice for the food industry to use as a marketing tool whereas Australia has made it a mandatory requirement for all packaged foods, fish, pork, fresh fruit and vegetables so that it is legally enforceable. New Zealand’s position is primarily based on the presumption that the costs would far outweigh the benefits to consumers, although an exception is

provided for in regulations in respect of wine. Instead, New Zealand promotes the use of CoOL through the “Buy NZ Made” industry certification scheme.

Buy NZ Made is a privately funded, self-regulatory organisation that promotes NZ made products. The Buy NZ Made “kiwi in a triangle” trade mark can only be used by members of the Buy NZ Made campaign who pay a licence fee to do so. The New Zealand Ministry of Consumer Affairs is also currently developing a voluntary industry code of practice for CoOL labelling of single ingredient foods.

Nevertheless, the report advocates an aligned approach to CoOL requirements between the two countries and in fact the panel went so far as to recommend that Australia’s existing CoOL labelling requirements for food be maintained and extended to cover all primary food products for retail sale. However, concerns were also raised around the quality of CoOL. For example, the “Made in Australia” claim can be made if 50% of the costs of production have occurred in Australia and the food has been “substantially transformed” in Australia. Likewise in New Zealand, the Commerce Commission takes the view that a place of origin is the country or region where the product’s “essential quality” was created, although there is also some ambiguity where raw products are imported from overseas, which is often the case.Therefore, the panel favoured an Australia-origin claim based on the ingoing weight of the various components for the food, excluding water.

Perhaps not surprisingly, the panel considered that the mandatory requirements for CoOL on all food products should be provided for specifically in existing consumer legislation in Australia. In New Zealand, Section

13(j) of the Fair Trading Act 1986 (“FTA”) prohibits making any false or misleading representations concerning the place or origin of goods.This goes wider than simply using the Buy NZ Made logo, but includes the use of any statements or symbols, such as flags or kiwis that indicate the product is made in New Zealand.

There have been a number of cases which have considered the use of the Buy NZ Made logo in relation to country-of-origin claims under the FTA. In particular, there has been a proliferation of cases concerning “royal jelly” products. In September 2010, an Auckland based company (NZ Korea Health), was fined $16,000 in the Auckland District Court for labelling imported royal jelly as New Zealand made. In this case, the powdered royal jelly was sourced overseas and was a substantially inferior product to the royal jelly which is sourced in New Zealand and that typically has a higher level of active ingredient.The company made deliberate claims that the product was “New Zealand Made” including using the Buy NZ Made logo, even though it was not a registered member of the campaign.

As such, it remains to be seen whether New Zealand’s voluntary stance may alter in light of the report’s recommendations and whether section 13(j) of the FTA is sufficient in terms of this being addressed in national legislation. In any event, the success of any country-of-origin claim on food labelling, whether voluntary or mandatory, may depend on the degree of clarity surrounding its defining requirements and whether the public perceive the claim as being reputable.

Overall, it should be an important consideration for marketers when looking at the labelling of their New Zealand products.

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

Is food safety a critical ingredient to your business?

ASUREQUALITY DELIVERS INDUSTRY BASED TRAIING IN: Food Safety Auditing Skills HACCP ®

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cu s to m e r se rvice

Building a customer focus Kevin Vincent, director Vincent and Nugent Business Improvement Consultants. www.vincentnugent.co.nz

Does your team understand the true meaning of good service?

Often customers recall service more than the product they purchased. It’s the attention to detail in the provision of your customer service that keeps them coming back.

When did you last have a negative buying experience? Negative experiences are almost always linked to poor customer service. Having a strong customer service element in your business is critical for your long term sustainability.

CARE is an acronym for “Customers Are Really Everything”.

I have used this term for many years to accentuate to my colleagues just how important customers are. I have also used the more widely known “under promise and over deliver” acronym UPOD. Companies become great due to the attention they provide to customers. They listen, learn and develop their services, and products that satisfy customers’ needs, wants and desires. The key is quite simple; businesses need to do things that will make customers want to do business with you.When this is done regularly, customers will become totally satisfied with your company.

A totally satisfied customer is one who believes that

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your company is different than the rest because you care about them, you take the time to listen, learn and understand their specific requirements and act promptly to address their needs. When you have totally satisfied customers you have their loyalty and their word of mouth advertising through referrals. There is a direct link between satisfied customers and increased sales.

Successful companies recognise this and know that customers aren’t just ‘shoppers buying’. They acknowledge that they’re all human beings with feelings, and they put their money where their mouth is by investing time and energy in improving their offerings, and in fine-tuning the customer experience. They make a commitment and stick to it for the long-haul, to the continuous improvement and development of relationships with employees and customers.

The extent a company goes to to develop a customer relationship can vary depending on the potential, but a positive caring attitude must prevail to all customers irrespective of potential. Remembering that wordof-mouth advertising can be quickly negative if the customer experience doesn’t match the customer’s expectations.

To manage a customer relationship a company must complete a customer satisfaction audit on a regular basis, and not by email, but make it personal. Ask questions like: How can we do better?

It is most important to develop a culture of customer focus. Customer focus is about getting each and every one of your employees to look at their job through the eyes of your customers and understanding what they must do to add value to the customer’s experience.

It is all about actively listening to the voice of your customers, getting their input and feedback and using this information to make changes which they value – changes to your products and services and how you do business.

Do these things and you will create a customer focus that will give you a competitive advantage.

Dr Peter Drucker once said: “There is only one valid definition of business purpose: to create a customer.”

Remember that customers are there to be looked after and developed. Making any sale is just the start.

Developing a mutually beneficial customer relationship depends on you.

g rocer y busi n ess Countdown most trusted supermarket Countdown has topped the list to be named New Zealand’s most trusted supermarket in the Reader’s Digest Trust Survey 2011.

The independent survey asked more than 500 New Zealanders what brands they trusted across a range of categories, including supermarkets.

Dave Chambers, managing director for Countdown supermarkets, said the award means Countdown is delivering on its promises to customers.

“The New Zealand supermarket shopper is exceptionally demanding. They want sharp prices, great quality and a wide range of products and that’s what we set out to deliver,” Chambers said.

“The award recognises that we are delivering on this and our customers trust us to deliver the best value supermarket in New Zealand.

“I’m proud that our team has won this accolade as it means that our customers have recognised all the hard work we have all done to deliver the new generation Countdown brand in New Zealand.”

Progressive Enterprises made a $1 billion commitment in 2009 to further develop Countdown’s store network nationwide, with the launch of the new generation Countdown supermarkets, which also feature a range of environmental initiatives and innovation from

energy-efficient lighting to low-emission refrigeration systems.

Outside of retailing, Countdown also drives the annual Countdown Kids Hospital Appeal, which has so far donated almost $4 million to children’s wards at hospitals nationwide in just four years.

“Countdown’s commitment to listening to customers’ feedback was one of the key reasons the supermarket was voted most trusted.”

Chambers said these factors most certainly contributed to the award, but said that Countdown’s commitment to listening to customers’ feedback was one of the key reasons the supermarket was voted most trusted.

“We really value the feedback of our customers and use this to improve our business.

“We’re looking forward to hearing more from our customers so we can maintain top spot next year and thereafter,” Chambers added. l

lead er sh ip

Three crucial conversations for leaders Joseph Grenny is co-author of three New York Times bestsellers.

Co-author of Crucial Conversations, Joseph Grenny, looks at quality dialogues.

My colleagues and I have spent 20 years studying what makes leaders influential. We wanted to understand what enabled leaders to change hearts and minds independent of their formal authority to demand compliance.To date we’ve involved over 25,000 people in this study and found that one remarkably versatile skill set accounts for a great deal of the most effective leaders’ influence. That skill set is how they deal with crucial conversations – those emotionally and politically risky issues that seem to crop up nearly every day in an executive’s life.

In our books, Crucial Conversations and Crucial Confrontations we describe a set of key principles that result in this kind of quality dialogue and increased influence. Here are some that make the biggest difference.

1. Learn to look.

Those who are most effective at crucial conversations are most conscious of their own behaviour. They are aware of their own “style under stress” and catch it quickly when their approach to a conversation begins to damage dialogue. Specifically, they watch for when their own behaviour moves to silence or violence – some form of withdrawal or attack. To get back on track, they consider what results they really care about. When the other person is reacting badly, they do something profoundly different from others. They make it safe.

2. Make it safe.

Have you ever noticed how some conversations – even about very risky subjects – go very well? And others, perhaps even about trivial disagreements, can degenerate into combat or retreat? Why is that? People can listen to tough feedback so long as they feel safe with the person giving it. Patients will even let doctors open their chest with a scalpel because they trust the doctor – they feel safe with him or her.

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How do you create safety? You help others understand that you care about their interests as much as you care about your own. Those who master crucial conversations are masters at watching for and repairing safety concerns the instant they occur.

3. Make it motivating.

One of the most common questions we’re asked about crucial confrontations is, “How do you talk to someone who doesn’t care about your concerns?”

When we ask this question to the influential leaders we’ve studied, they are often confused by the question itself. They rarely face instances where they can’t engage someone in a crucial confrontation. Why? Because they know that the key to influence is empathy. Before they start a crucial confrontation they give careful thought to how the problems they want to raise either are affecting, or will affect the other person. They think about the natural consequences of the situation to the other person. The problem is that they don’t see how their weaknesses are connected to their own concerns. If, in a respectful way, you are able to help them see how their own interests are served by addressing the problem, they will be naturally motivated to engage in solutions.

Can these skills be learned?

Absolutely. We have spent years developing methods for teaching and training executives to increase their influence by improving how they deal with these three crucial conversations. And when they do, relationships and results improve rapidly and remarkably.

Joseph Grenny is co-author of three New York Times bestsellers, Influencer, Crucial Conversations, and Crucial Confrontations. His fourth book, Change Anything: The New Science of Personal Success, was released in April 2011. He is also a soughtafter speaker, consultant to the Fortune 500, and cofounder of VitalSmarts, an innovator in corporate training and organisational performance. www.sevenseventeen.com.au

gs1

Cross-selling, cross-dressing & chips Dr Peter Stevens emphasises the benefits of modern technology.

Fridges that know that they need restocking with milk. Real-time shelf stock management systems.

Perfect supply chain visibility. Smart mirrors that detect what garment you have in the dressing room and display rich, user-centric information and even suggestions on what other apparel items would be complementary.

All things enabled by next generation identification – Radio Frequency Identification (RFID).

As some readers will know, the FMCG industry has been the key driver behind the development of nextgeneration RFID. RFID has been around for a long time (since the Second World War), but it is only with the standardisation of the chips, the readers and other uber-geeky stuff, such as ‘air interface protocols’, that RFID is set to move from the realms of sci-fi to the supermarket and fridge.

The suite of Electronic Product Code (EPC) standards are enabling an approach to universal identification and exchange of information. Objects ‘talking’ to networks – the Internet of Things it is sometimes called.

At present, EPCs are only heavily used in the back room – assisting with stock rotation, supply chain visibility and traceability. In NZ there is currently little focus on RFID in grocery, but EPC is being used extensively in primary produce supply chain management and asset management.

However, in parallel with the rise of EPC is nervousness around privacy. If everything can be identified and can be ‘read’ without you seeing or hearing the familiar ‘beep’ of a barcode reader, surely 100% surveillance is just a step away – or so the story goes? In actual fact, industry has not done itself any favours in the past by putting RFID chips on stock and tracking movement without telling consumers. Fearmongers envisage marketers being able to scan you as you walk into a shop and cross-sell goods based on what they have detected you have in your bag or on your person.Will a local supermarket checkout operator be able to ‘know’ which of their male customers are wearing frilly bits under their sober suit or females with mismatched lingerie?

Fertile imaginations have run riot!

Luckily the industry has worked hard to allay privacy fears by working with privacy commissioners, regulators and consumer advocacy groups. Emphasise the benefits and manage the risks has been the message!

Dr Peter Stevens, chief executive, GS1.

Email: peter.stevens@gs1nz.org.

Here in NZ we have developed a Code of Practice, with assistance from Standards New Zealand, with the active participation of government and consumer groups (you can find it at www.gs1nz.org/documents/ EPCConsumerCode17MayFinal_000.pdf).

And in one of the most cautious regions of the planet, Europe, GS1 has worked with industry to develop an industry privacy framework which has just been endorsed by the European Commission (see www.gs1. org/1/newslib/detail.php/gs1-welcomes-europeancommission-endorsement-of-new-industry-privacyframework/?nid=1102). Most of these initiatives are just plain common sense applied – analyse the actual and perceived risks, take a prudent approach to protection of privacy and ensure that you focus on the consumer.

As with any technology transition, we in the industry must be mindful to strengthen consumer understanding and confidence in the new technology and so accelerate its wider deployment for mutual benefit.

AUGUST 2011 FMCG

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Superior space planning The key to increased sales is proper merchandising and space planning.

P

SPOS Brand Category management solution merchandised with customised coloured dividers including product information signage.

lanograms are one of the best merchandising tools for presenting products to the customer. If you aren’t using planograms it may be time to start.

Originally developed to help supermarkets improve sales, space management has evolved to a “must have” for grocers and retailers; forward-looking suppliers that embrace advanced solutions can rise above competitors and grow market share.

Planograms are a visual representation of how a category should be merchandised in-store and merchandise planning is a way of recognising the most profitable items in your assortment while maintaining a balance of variety and selection for the consumer. With an effective planogram it is easy to plan, execute and analyse demand-based category and assortment strategies, while driving overall profitability.

Good merchandising is an art and, thanks to today’s space management

software such as the one used by Image Net’s ‘Plan It’ service, a wellmerchandised planogram is easy to identify. With an estimated twothirds of all purchase decisions made in the store, it’s essential for planograms to be vibrant and eye catching whilst steering customers towards higher margin lines.

Savvy suppliers have been providing retailers with planograms for years, and some supermarkets want more and more plans for their store layouts and for trade presentations of new products lines to their category buyers.

New product introductions are not slowing and margins not getting any larger, so planograms should be updated regularly to take into account new NPD and changes in consumer trends.

When it comes to retailers making that all important product ranging decision, suppliers who present retailers with a well thought out,

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detailed planogram as part of an overall marketing strategy could clearly have an advantage.

Custom designs Mills Display prides itself on providing innovative merchandising and space management solutions to the retail sector.

“This includes our comprehensive range of shelf management dividers and pusher systems,” says Mills Display general manager Rosemary Fowler.

“We have extensive knowledge and experience and can advise customers on best merchandising practices to gain maximum impact. Mills Display can offer custom-designed and manufactured point-of-sale displays to increase your in-store product sales.”

She adds: “Our merchandising and display products have many benefits

within the grocery industry by keeping products presented in a tidy orderly manner – from pegboard hooks to clip-strips and shelf dividers, which help to maximise every inch of space within the retail grocery environment.”

Superior shelving While it’s no secret that good shelving and merchandising systems encourage customers to purchase, the various options available and modular componentry can be slightly overwhelming to the retailer who just wants to improve stock selection and increase sales.

SPOS has been assisting brands and retailers with product merchandising and shelf management solutions for over 20 years and offers a range of proven products and solutions that

improve product presentation, make it easier to identify out of stock items and allow for easy customer purchase selection.

SPOS marketing and product manager Natasha Ching says: “We encourage our clients to first think about their objectives for using a shelf management solution. What product(s) they are displaying and where? How many shelves or stores are required? What sort of budget do they have? And do they have some-

SPOS Brand trays with integrated pushers secure shelf space while grabbing attention with blocked colours and keep product at shelf edge to encourage selection.

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g rocer y b us ine ss

For a premium and long lasting solution SPOS has developed an Automatic Product Mover or FlexRoller™ track system that can be customised into shelving for a range of products and applications from dairy and beverages to herbs and spices to haircare. The patented rollers use a low angle gravity feed process to deliver products to the shelf edge regardless of weight and packaging and provide increased flexibility for product and layout changes. Flex Roller (APM) gives perfect presentation in high velocity areas and will save labour constantly fronting up products on shelf and lost sales in unnoticed out of stocks.

thing in mind already or something they have seen that they want to emulate? Having this sort of information up front helps narrow down the possibilities and product combinations that may be suitable.”

She adds: “A standard SPOS shelf management setup can include our divider system and attachment rails to assist with maintaining correct product facings and planogram settings.Adding product pushers further assists shoppers by keeping products at shelf edge for quick selection, and also helps staff by keeping shelves looking their best and making identifying out of stock items easy.

One thing to keep in mind if you are using pushers: you will need a front stopper of some type so your stock doesn’t end up pushed off the shelf!”

Brand trays and category signage are another popular method of highlighting products and maintaining shelf space. The SPOS team often works together with brand and retail clients to develop and coordinate custom solutions to suit both brand objectives and store requirements.

Virtual shopping If you are following overseas trends you will know that some planogram concepts are now going virtual, adding a whole new dimension to retail and allowing consumers to do their grocery shop ‘on the go’ from some unexpected new locations.

Hoping to raise the level of convenience for time-strapped commuters in South Korea, Home plus – the Korean branch of Tesco – recently launched a series of virtual stores on

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48 FMCG AUGUST 2011 t 09 828 4877 f 09 828 4377 e sales@nzpos.co.nz w spos.co.nz a 16 Copsey Place, Avondale, Auckland

Planograms should be updated regularly to take into account new NPD and changes in consumer trends. subway platforms, enabling customers to make purchases using their smartphones while they wait for a train.

The virtual stores, constructed from large backlit billboards, display images of all the items one would expect to find in a standard Home plus shop. QR codes are then placed next to the image of each product, enabling smartphone equipped commuters to automatically add the merchandise to their virtual basket

by scanning the code.The total order is then delivered to the commuterâ&#x20AC;&#x2122;s door once they return home from work. During this virtual campaign Home plusâ&#x20AC;&#x2122; online sales increased by 130%, with over 10,000 customers trying the new concept.

According to Home plus, Korea is the second hardest working country in the world, making the need for a convenience-focused solutions particularly important.

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A brave

The New Zealand Government has announced that tobacco displays will be banned.

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FMCG February 2010

new world

– without tobacco?

Tariana Turia, Associate Minister of Health, said the passing of the Smoke-free Environments (Controls and Enforcement) Amendment Bill makes tobacco displays a thing of the past as New Zealand increasingly moves towards a future without tobacco.

“This is a great moment for New Zealand. This Bill closes one of the last loopholes the tobacco industry uses to prey on our young people.

“It introduces a complete ban on the display of tobacco products and references to tobacco products in trading names.

“Retail displays, innocently positioned alongside everyday confectionery and sweets, are a key component of making cigarettes attractive to recruit young smokers. We’re not going to tolerate this any longer,” Minister Turia explained.

The Bill also increases the fines for selling tobacco products to under 18s.

The maximum penalty for this offence will now be $10,000 for a business compared to $2000 in the past.

It also increases the powers of Smokefree Enforcement Officers, enabling them to impose instant fines of up to $1000 for sales to those under the age of 18 years.

“Any tobacco products for sale must be completely concealed from public view and we will be able to fine retailers immediately where they are found selling tobacco illegally to minors.

“No longer will people go into a

dairy for milk and a newspaper only to be confronted by a wall of cigarettes. These ‘power walls’ not only encourage young people to try smoking, they also make it harder on those attempting to quit,” Minister Turia said.

As well as targeting the display of products, raising the fines for selling to children, and increasing the powers of Smoke-free Enforcement Officers, the Bill also addresses exclusive product-supply arrangements – clarifying and extending the ban on such ‘covertsponsorship’ activities.

Minister Turia said: “This Government is serious about reducing the harm caused by smoking. Our dairies, supermarkets and convenience stores provide a vital and greatly appreciated service to New Zealand communities. Tobacco is not a normal nor a healthy consumer product, and it will be less and less a part of this picture.”

The Government does also recognise that removing retail displays will have cost implications for retailers.

The Ministry of Health will be seeking input from the retail sector to identify ways to minimise compliance costs and implement the changes with minimal disruption to businesses.

These changes will come into force in July next year, giving most retailers 12 months to make the changes needed. There is scope in the legislation for some exemptions for

a further 12 months for those smaller retailers facing high costs.

The Bill • Provides for the removal of tobacco displays in retail outlets.

• Prohibits the display of trading names where these include words or phrases that effectively advertise tobacco products, for example “John’s Discount Cigarette Store”.

• Provides an ‘instant fine’ infringement notice scheme to enforce the prohibition on the sale of tobacco products to people under 18 years.

• Helps enforce the law by making relevant contracts and agreements void if they prevent or limit compliance with the Smoke-free Environments legislation. l

Did you know . . .

• Less than 20% of New Zealanders smoke and 80% of those say they wish they’d never started.* • In supermarkets, tobacco sales dropped 15% following the 2010 tax increase.** • The Bill was passed into law on 14 July 2011 with 117 votes in favour, and three votes opposed. *2009 Tobacco Use Survey **http://www.radionz.co.nz/news/ national/55499/tobacco-sales-downsince-rise-in-excise

AUGUST 2011 FMCG

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A modern approach to shopping Trina Snow, executive director, NARGON.

Social media is becoming more important for stores, finds Trina Snow.

One of the most common buzzwords in modern business is “social media” – a collection of technology platforms including Facebook, Twitter and blogs. Retailers around the world are beginning to realise that social media is not a fad or just for young people, it can be an important part of a successful business model.

However, many stores are struggling to figure out how exactly to use social media to generate actual value to their business. Compared to most other industries, retailers make comparatively little use of social media technology, though a number of large international companies are now making rapid progress in this area. The first step in using social media is to set up a Facebook page and establish a Twitter account.

Critically, these need to be used correctly to build customer engagement and interest.

Social media is one way to help a store stand out in a crowd and to encourage shopper loyalty. Forrester Research estimates that a third of people visit social media sites at least once a month. For people between 18 and 24 of age, 20% of their online time is spent using social media. Even for people between 25 and 35 of age that figure is still an impressive 10%.

Recent research in both Britain and America shows users of social networks were increasingly keen to receive offers from their favourite brands.

Stores can use their social media platforms to interact with customers, answer questions, promote competitions, make special offers, suggest recipe ideas, share shopper suggestions and provide online customer advice.

However, while this may appear simple, it does require resources and effort for a store to actively listen and engage with consumers. Social media strategies, which basically involve a store simply putting out a stream of information, are rarely successful, no matter how good the information is. Modern, social media-savvy consumers really value conversations and engagement.

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Giant chain Sainsbury’s in the United Kingdom is the clear leader in the British grocery market when it comes to the effective use of social media. They particularly focus on social media competitions and special offers to encourage consumers to associate with the Sainsbury’s brand and, ultimately, to shop at its supermarket. In Britain and the United States the large national chains are actively embracing social media and the smaller players are playing catch-up as the added value becomes increasingly clear.

Speaking at the recent C-Store Forum in Portugal, futurologist David Smith urged stores to get on Facebook and Twitter, and make them part of their business.

“These tools give us a big opportunity to reorganise our business model and do things differently. Sharing is the new mindset of the digital generation,” he told delegates. Smith argued consumers were “increasingly looking for suppliers who have an added sense of purpose” and strong values, such as a genuine connection with the local community.

He suggested retailers appoint someone from within their business to look after their social media activities.

“Find the person who’s passionate about using social tools and engage them with it,” he said. Not everyone in the industry is convinced of the value of social media and Smith received a slightly mixed reaction from delegates.

One person in attendance who agreed was Guy Warner from Budgens. He said “it’s a world that’s here and you have to embrace it in whatever form you deem appropriate to your business.You might think ‘it doesn’t apply to me, people come to me because I’m convenient’ but that’s burying your head in the sand a bit, because the world has changed.” His company has already launched on Facebook and Twitter. “We’ve created the opportunity for ourselves and now we’re just trying stuff to build a following and make it part of what we do,” Warner said.

Social media is simply one way to communicate and engage with potential customers. It has been shown that it can make a difference in our industry but it does require investment, hard work and doing things differently. There has been a big cultural shift from an emphasis on ‘bricks and mortar’ to a modern shopping climate which values ‘apps and taps.’

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Fruit pie comes out tops in 2011 Pie Awards The 2011 Bakels New Zealand Supreme Pie Awards were announced on July 26 in Auckland with a spiced plum, port and apple pie knocking the classic meat pie off its perch. The fruit pie beat a record 4400 entries to take out the coveted title of the country’s top pie in the awards.

This is only the second time in the award’s 15-year history that a Gourmet Fruit pie has won the Supreme pie award.

This year’s Supreme winning pie was made by baker Shane Kearns of Viands Bakery, of Kihikihi in the King Country.

Kearns’ win ended the dream Bakels NZ ceo and pie awards judge Duncan Loney presents the Supreme Award to run of pie maker Pat Lam, Shane and Kathy Kearns. of Gold Star Patrick’s Pies in Tauranga and Rotorua, who gourmet meat; vegetarian; bacon and egg; mince has won the Supreme award four times including twice and cheese; gourmet fruit; seafood and commercial with a creamy bacon, mushroom and cheese pie. wholesale.

It was definitely a family team effort for the Viands Chief judge Grant Wilson, who is owner and managing Bakery with Shane making the pastry and wife, Kathy director of Maketu Pies in the Bay of Plenty, said the designing the filling. Kathy says the inspiration came to standards were “way up” on last year. Wilson has been her in the middle of the night. She said she designed the making pies for 29 years and says Kiwis are “passionate” pie as a winter dessert. about pies.

“We moved here eight months ago from Hawkes Bay, Bakels NZ ceo and pie awards judge Duncan Loney says and it is cold here. Our pie was inspired by winter. It also he was delighted with the calibre of entries in this year’s contains cinnamon, orange zest, vanilla paste and a lot of awards. He also says the overall pie market remains orange juice.” buoyant, with Kiwis chomping their way through The Kearns are part of a baking dynasty. Kathy’s parents, 75 million pies a year and the John and Linda Atwill own Osler’s Bakery, in Wairoa, and market worth in excess of were a previous Supreme winner in 2002. Kathy’s two $140 million a year. brothers are also part of the Wairoa bakery. The Atwills Forty five awards were dished plan to move to Te Awamutu to join the Kearns’ two out, with the Supreme prize bakery operation in Te Awamutu and in Kihikihi. winner receiving $7500 cash The Kearns produce about 300 pies a day, including 18 and the coveted Supreme different varieties.

Piemaker Trophy, while Gold The Bakels New Zealand Supreme Pie Awards are the award winners received country’s most high profile and popular food contest. $1000 cash.

This year’s awards attracted the highest ever number of Among the Gold award winners entries, from more than 380 bakeries across the nation. was Murray Swetman from A group of judges assessed the pies, which are blind Gourmet Foods in Tauranga coded in 11 categories: mince and gravy; steak, vegetables for the Commercial/Wholesale and gravy; steak and cheese; chicken and vegetables; category. l

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FMCG AUGUST 2011

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the business of liquor reselling 56

FMCG February 2010

NZ wines

Senior winemaker Chris Scott at the Church Road winery.

A new event has replaced the Liquorland wine show this year and has attracted 1108 entries from New Zealand, France, Italy, Australia, Spain and Portugal.

Among the many highlights at the inaugural Spiegelau International Wine Competition 2011 in July was Church Road Winery, receiving the Champion Merlot trophy for Church Road Cuve Hawke’s Bay Merlot 2009, the jointly awarded Champion Winery trophy as well as a dozen medals.

Church Road’s senior winemaker Chris Scott collected the trophies on behalf of the Church Road team at the awards dinner held in Auckland in July.

“This continues an amazing run for the Cuve Merlot with every vintage since the inaugural 2005 having won at least one trophy. This wine is all about meticulous viticulture and rigorous fruit selection, in some cases marking out parts of rows prior to picking so that only the lowest vigour vines are hand harvested for this wine. Once in the winery it’s all about maximising the quality of the fruit through gentle handling and as such the wine is bottled unfiltered.

It’s fantastic to be able to accept this

shine at inaugural wine competition award on behalf of the Church Road winery team,” said Scott.

Exceptional viticulture and Hawke’s Bay’s perfect conditions for Merlot, coupled with the skill and craft of Scott and his team deliver this exciting New Zealand varietal with all the quality hallmarks you’d expect from Church Road. Merlot is a grape variety that has proven extremely well suited to selected viticultural areas in New Zealand especially the hotter areas of Hawke’s Bay. In recent international tastings, Hawke’s Bay Merlot both as a single variety and in blends with Cabernet Sauvignon has successfully challenged some of the most famous reds of Bordeaux.

Not to be outdone, the Church Road Reserve Merlot Cabernet 2008 also received a gold medal with Church Road Pinot Gris 2010, Church Road Reserve Chardonnay 2009, Church Road Reserve Viognier 2010 and Church Road Syrah 2009 all being awarded silver.

Villa Maria takes ‘Wine of the Show’ Villa Maria Estate was awarded Wine of the Show at the Spiegelau International Wine Competition, along with Chardonnay and Pinot Noir trophies.

The Villa Maria Single Vineyard

Ihumatao (Auckland) Chardonnay 2010 took the Chardonnay trophy and Wine of the Show whilst the Villa Maria Reserve Pinot Noir 2009 was the Pinot Noir trophy winner.

The Villa Maria Reserve Pinot Noir is a wine with exemplary past performance with an outstanding 41 golds, 12 trophies and a wine of

show award to its pedigree. Similarly the Villa Maria Single Vineyard Ihumatao Chardonnay has now delivered nine golds and three trophies; with every vintage that has been made, having won a gold award.

Villa Maria founder and managing director Sir George Fistonich commented: “The Ihumatao Vineyard

Villa Maria Auckland winemaker David Roper, Villa Maria owner and MD Sir George Fistonich.

AUGUST 2011 FMCG

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“It was great to be part of such a well run event, particularly, using style-specific glasses.” – Sam Kim in Auckland may be small but it’s one that wins more awards per hectare than any other vineyard in the country, it’s simply outstanding.

When it comes to the reserve Pinot Noir trophy, there’s a lot of competition out there and many wine regions vying for success with Pinot Noir.”

The number of accolades bestowed on the Reserve Pinot Noir from Marlborough speaks for itself, he said.

Wine judge and FMCG wine writer Sam Kim.

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FMCG AUGUST 2011

Champion Winery Saint Clair Family Estate also celebrated trophy success at the Spiegelau International Wine Competition. The ultimate award – Champion Winery of the Show – was awarded to Saint Clair Family Estate (shared jointly with Charles Wiffen and Church Road). In addition, Saint Clair Family Estate also won the Champion Sauvignon Blanc trophy, which was awarded for the Saint Clair Pioneer Block 3 43 Degrees Sauvignon Blanc 2010.

“We have been able to achieve these results through our incredibly professional and dedicated team,” says Neal Ibbotson, managing director of Saint Clair Family Estate.

“We feel very proud that our wines consistently achieve top class status from international wine shows such

as this. Our open-minded approach to quality viticulture and winemaking is imperative to achieving such a high quality standard.”

This recent success clearly recognises the ability of Saint Clair’s winemaking team, led by Matt Thomson and Hamish Clark, to produce quality wines of world-class excellence – a remarkable achievement for the family-owned Marlborough winery.

Trophy winners were announced at the awards dinner in Auckland in July, following three intense days of judging in June at the Marlborough Convention Centre, where all the entries were evaluated.

The event is believed to be the first wine competition to use stylespecific Spiegelau glasses, allowing the wines to show at their best.

Senior wine judge and FMCG wine writer Sam Kim commented: “It was great to be part of such a well run event, particularly, using style-specific glasses. For example, Burgundy glasses were used for Chardonnay and Pinot Noir, highlighting the varieties’ elegant bouquet. It’s like having different shoes for different occasions: dress shoes for going out and running shoes for running. More work for the backroom stewards – but the judges loved it!” l

Hollywood and British Royalty enjoy Villa Maria wines On a Saturday night in July, the Duke and Duchess of Cambridge joined Hollywood’s Glitterati to toast Britain’s up and coming talent at a red carpet event held in Los Angeles.

Villa Maria Estate wines from New Zealand, and Champagne Taittinger, were on hand to help toast the stars as the official wine and champagne partners to the British Academy of Film and Television Arts, who hosted the event.

Hollywood Royalty including names such as Barbra Streisand, Nicole Kidman, Jennifer Lopez and Tom Hanks showed up to meet with British Royalty and 42 rising stars from the British film, television and video-gaming industries.

Prince William, as the President of BAFTA, attended the event with the intention of introducing the British stars of tomorrow to the crème de la crème of Hollywood and to promote the British creative industries stateside.

Sir George Fistonich, owner of Villa Maria Estate, said, “We are very pleased to be involved in this new initiative from BAFTA that brings British talent to the attention of the world-famous US moving image industry.

We are thrilled that our Sauvignon Blanc and Merlot Cabernet Sauvignon were chosen for guests to enjoy at the event.”

Profits from the event will be used to promote and support emerging British talent in Los Angeles through future events, scholarships and Barbra Streisand and friends enjoy mentoring initiatives. l Villa Maria wines.

The Duke and Duchess of Cambridge arrive at the red carpet event.

Register now for ProWein 2012 Online registrations for ProWein 2012 exhibitors have begun.

ProWein 2011 was a great success, with 3630 exhibitors from around 50 nations, and more than 39,000 international trade visitors from the retail and catering/restaurant sector.

The leading trade fair for the industry is now inviting exhibitors to the forthcoming ProWein, which will open its doors from 4 to 6 March 2012. To access the registration forms visit www.prowein.com.

All the relevant winegrowing nations are expected in Düsseldorf in 2012 where they will be presenting a diverse range of wines and spirits, making ProWein an excellent business platform for the international trade.

In combination with the comprehensive support programme, the central tasting zone and the successful “Wine’s best friends” special delicatessen show, ProWein offers valuable ideas and new concepts for the specialist trade, food retail and catering/restaurant industry. l

AUGUST 2011 FMCG

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The new face of Carlsberg Carlsberg has enjoyed huge success over the past five years in New Zealand, with the next five going to be exponentially more impressive. Carlsberg’s performance over the last year alone has been outstanding – growing at over 60% value in the grocery channel. In light of this huge success, Carlsberg has undergone a major makeover and all of its SKUs are receiving a new visual identity. This means a new bottle, can and outer packaging will hit the market by early August.

Brand manager Taylor Green commented: “While Carlsberg is the best beer in the world, its prolific tag line is to hang up its boots. The new bottle and packaging represents the new face of Carlsberg, along with it comes a new personality – ‘That Calls for a Carlsberg’ – built around Carlsberg’s attitude of doing the ‘right thing’ and being deservingly rewarded, most of the time with a cold Carlsberg. This is a strong internal mantra for the Carlsberg company.”

In 1904, Carlsberg scientists discovered a breakthrough in yeast technology which revolutionised the way beer was made. Instead of keeping the secret to themselves, they

told the whole world about it so everyone could enjoy good beer. Almost all of the beers made today are still using this brewing technique. Carlsberg’s rich history gives the brand even more personality. Born from an entrepreneur’s dream, JC Jacobsen was running the Carlsberg brewery at the age of 24.

“He left behind a tremendous legacy and to commemorate this, we will be celebrating his 200th birthday in September 2011,” says Green.

To support the new visual identity Carlsberg will have a large multi-channel marketing campaign from August 1. l

Love Speight’s and love NZ!

Environmental Minister, Hon Dr Nick Smith, and Dunedin’s mayor Dave Cull at the launch of Love NZ at the Speight’s Brewery.

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Speight’s is one of the first brands in the country to include the Love NZ “recycle with care” logo on the bottles and packs of its soon-to-be-launched Speight’s Cider.

‘Love NZ’ is a government-led initiative, facilitated by the Glass Packaging Forum, which provides permanent and temporary recycling bins and bottle banks in public places across New Zealand. Including the brand’s logo on Speight’s Cider packaging will help directly reinforce the message of where to put the empties.

The Forum has been hosting launch events for the Love NZ project around the country, most recently at Dunedin’s Speight’s Brewery, attended by the Minister for the Environment, the Hon Dr Nick Smith, and officials from local and central government and community groups.

Funding for the project was announced by Smith and the support from councils, the service sector and brands such as Speight’s means that recycling facilities are being

FMCG AUGUST 2011

placed in 26 regions nationwide.

At many public events, over 75% of bottles and packaging will be recycled, however in public places outside of specific events it can be much more difficult to get the recycling message across.

“We’re delighted to be able to sponsor the Love NZ project, and hope that labelling our new Speight’s Cider’s recyclable packaging with this brand will help make it clear to consumers what they should do with the packaging after enjoying what’s inside,” says Speight’s spokesperson Jonte Goldwater.

“Love NZ is an ideal partnership for Speight’s, which is also involved in other environmentally-minded projects such as the Speight’s Environment Fund, which raises funds for environmental groups in the Dunedin area.”

Dr Smith acknowledged the work of brands such as Speight’s, saying that including Love NZ’s logo on its bottles will help make the connection between the recycling bins and the product to be recycled.

The Love NZ project has an ambitious national target this year: to collect from public places an additional 9000 tonnes of glass, plastic and cans. l

Wine conference focused on profitability Grape growers and winemakers are looking forward to networking with industry leaders at a major conference in Auckland.

In its 17th year, the annual Romeo Bragato Conference is New Zealand’s most important conference for the grape growing and wine sector. This year’s conference will be held at the Ellerslie Event Centre and has a comprehensive three day programme from August 25-27.

New Zealand Winegrowers science and innovations manager Philip Manson says that as the industry looks to the future, it must concentrate on producing quality wine balanced with commercial realities.

“There is no doubt that growers and wineries are facing tough times, but a continued focus on quality will provide the platform required for future growth,” Manson says.

Stuart Smith, chairman of New Zealand Winegrowers, will deliver the opening address, sharing a full update on the current state of the wine industry. This presentation is followed by Hon David Carter, Minister of Agriculture, Forestry and Biosecurity who will also share an update on the government’s activities supporting the ongoing economic growth of the sector and its associated research and development efforts.

Last year an Industry Leaders Forum was introduced and was one of the most popular sessions. Panellists just announced for this years’ event include Mike Brown, chief executive, Tohu Wines; Fabian Partigliani, managing director, Pernod Ricard New Zealand; John Clarke, president, Gisborne Winegrowers and Neil MacKenzie, ceo, Warburn, Marlborough Wine and Grape.

These industry leaders will be sharing their wealth of knowledge with the goal of helping steer the industry ‘back to profitability’.

This year sees the introduction of a ‘trade day’, giving those in the industry an opportunity to see the latest products and network with exhibitors. The trade show will open on Wednesday August 24 from 3pm to 6.30pm.

Speakers in this year’s line-up include overseas experts who will cover a diverse range of issues including managing cash flow; research and sustainability.

The conference programme also features New Zealand’s only awards for the grape grower – the Romeo Bragato Wine Awards, the Markhams Young Viticulturalist of the Year and the Silver Secateurs Awards. These esteemed industry accolades will be presented at the Bragato Awards dinner on Saturday August 27. For further information visit www.bragato.org.nz l

Did you know . . .

The Romeo Bragato conference is named after a man who arrived on New Zealand shores on February 19, 1895. Fresh from Italy with his Diploma in Viticulture and Oenology in hand, the then New Zealand Government escorted Romeo Bragato from one end of the country to the other to visit and advise on our local vineyards. Regrettably his work was not acted on and lay forgotten for over 60 years. Dusted off by a few pioneers in the 1970s and early 1980s, many of the recommendations of Romeo Bragato form the basis of modern New Zealand viticulture practices.

Win a case of Selaks Winemaker’s Favourite Marlborough Sauvignon Blanc!

This complex wine has a sublime weight and length, showing intense flavours of gooseberry, passion fruit and lime underscored by a vibrant, refreshing acidity.

Selaks chief winemaker Darryl Woolley explains: “Each of our winemakers has their own favourite vineyard – places where exceptional grapes are produced. We ask each winemaker to craft a wine that reflects the very best characteristics of these special grapes. We call the delicious end results our Winemaker’s Favourite.”

Subscribe to FMCG this month to be in the draw to win a case of Selaks Winemaker’s Favourite Marlborough Sauvignon Blanc worth $275! Turn to page 39 for more details.

AUGUST 2011 FMCG

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ke i t h’s ta ke

Maximising opportunities Keith Stewart is writer at large for Mediaweb’s food group and foodnews editor.

Retailers need to be prepared during the cup, says Keith Stewart.

Judging by data from the recent Vancouver Winter Olympics, New Zealand wine and beer retailers could be in for a bigger boost in sales than the rest of the retail food and beverage sector during the coming World Rugby Cup. During the Vancouver games, which covered a narrower time but attracted a larger number of foreign visitors, retail liquor sales increased by 3.7%.

This is significantly more than the increase in retail food and non alcoholic beverages, which managed a mere 0.5% rise. In part analysts put this down to the ‘party atmosphere’ that permeates sporting events, especially where there are winners who want to celebrate and losers who want to drown their sorrows.

There is some incentive for liquor outlets to give their craft beer range a tweak in time for the event.

Similar figures have been estimated for last year’s World Cup football tournament in South Africa. While that event attracted 300,000 foreign visitors during the cup period, compared with 200,000 who travelled to Vancouver for the Olympics, and just 85,000 expected for New Zealand’s rugby event, New Zealand’s retail experience during the cup is likely to be more in keeping with South Africa’s.

This is because we share similar, high profile wine industries which are already well known to most of those visiting. In consequence, the boost to liquor retail is greater than in other retail sectors with the exception, in South Africa at least, of the garment trade.A high spend on items of clothing that reflect support for particular 62

FMCG AUGUST 2011

teams is common during the period of the event.

Wine and beer retailing in New Zealand should have a similar response from visitors as was the case in South Africa, with South African breweries declaring a huge boost in domestic sales, and some South African wineries reporting domestic retail sales increases of as much as 60% at the start of 2010, thanks primarily to the World Cup. As New Zealand has a much more active craft brewing industry than South Africa, there are suggestions that this will also gain some traction from extra visitor attention. With supermarkets boasting strong craft beer sales in recent years, their extensive beer ranges could become an attraction, and there is some incentive for liquor outlets to give their craft beer range a tweak in time for the event.

Certainly visitors from countries such as South Africa, Britain and Australia are more beer savvy than the wine drinking supporters of Italian and French soccer teams.

There is also the factor of travellers’ preference for tasting local flavours, and in an environment intense with beer promotion from principal sponsor Heineken there is plenty of scope for a surge in less well known brands of local beer.

This is most certainly what happened to local wine during South Africa’s World Cup experience last year, with domestic wine sales up significantly in the first half of 2010 due to the cup. Domestic sales made up 60% of South African wine turnover during the period, a reversal of normal sales which run 60% to export.This was in spite of a spike in export shipments, also triggered by World Cup coverage.

According to Wines of South Africa the boost in domestic sales was equally shared by hospitality and retail, showing that there was a strong market for take-home drinking. This should be encouraging for New Zealand retailers, especially considering the high booking rate for ‘free’ tourism options, such as campervans and selfcatering accommodation.

So the message for retailers is simple – boost your local wine and beer brand exposure to capture the tourist dollar while you can. In a market with more local beers and wines than ever in our history, there is plenty of opportunity to emphasise your identity while making a healthy profit.

nargo n

Looking for balance Alcohol reforms are unlikely before the election, says Trina Snow.

Retiring Justice Minister Simon Power rates drafting his wide-ranging Alcohol Reform Bill as one of his most significant achievements in office.

He told NARGON he was hopeful it would pass before Parliament rises in October ahead of the general election.That is looking increasingly unlikely, as the Select Committee currently considering the legislation has extended its considerations to the end of August, because of the large number of submissions and the complexity of the issues raised.

Parliament already has a packed legislative agenda, which means that it is unlikely the Bill will be debated, far less passed, before the House breaks up for the campaign.

However, the Government may always choose to give the Alcohol Reform Bill priority over other issues with Prime Minister John Key saying he hoped Parliament would at least begin to debate the Bill before the November election. It should also be noted that Power is the Acting Leader of the House and has a tremendous influence on Parliament’s agenda.

That said, NARGON considers it unlikely the Bill will be passed before the election, meaning that a new Parliament will have to debate the proposals, including the headline issue of the purchase age, usually incorrectly referred to as the drinking age. This view is based on the legislative backlog and the image problems, which would be created if Members of Parliament started discussing how to crack down on liquor, at the same time the country was being encouraged to put on a party atmosphere for the Rugby World Cup. Most of the media attention has focussed on the Law Commission report “Alcohol in our Lives: Curbing the Harm.”

While the Government Bill has adopted the majority of the Commission’s recommendations, a number of vocal lobby groups allege the proposed laws do not go nearly far enough. They have been bombarding Parliament with “Alcohol is a Drug” postcards and are quite prominent in the media.

Coverage of the other side of the argument has been cursory at best. The Centre for Independent Studies (CIS) released a thought-provoking report called “Alcohol Policy and the Politics of Moral Panic”, but it received virtually no publicity in New Zealand despite being a well-researched paper from a respected transTasman think tank.

In the report, CIS visiting fellow Dr Eric Crampton, who is also a senior lecturer at the University of

Trina Snow, Canterbury, and CIS policy analyst Luke executive director, Malpass examine the history of alcohol NARGON. reform in New Zealand.They conclude that while there are frequently calls for government to ‘do something’ about alcohol, New Zealand’s relatively liberal alcohol regulation regime has largely been a success.

They base this conclusion on the clear evidence that alcohol consumption in New Zealand is significantly lower than it was in the 1970s, despite a slight rise over the last decade. Kiwis are drinking much less than they used to. There have also been significant shifts in attitudes toward drink driving, alcohol and violence, and alcohol and sport.

The Centre for Independent Studies argues that the reports from ACC, the Ministry of Health, and the Law Commission, which form the base of the Government’s Alcohol Reform Bill, all “grossly inflate the so-called ‘social costs’ of alcohol consumption to New Zealand society”.

This occurred because they commissioned inadequate economic reports, which considered only the negative effects of drinking and none of the positives. The Centre contends that is a poor basis on which to develop restrictive policies which, in their view, will “only slightly reduce aggregate demand for alcohol, but do nothing to deal with serious alcohol related problems”.

Malpass argues “the government should not over-regulate the sale of liquor just to appease public panic. Punishing the majority of responsible drinkers will not help the small minority that are problem drinkers. Increasing tax on alcohol will penalise light drinkers while making only a marginal difference to problem drinking and its consequences.” The Centre for Independent Studies makes the strong point that people addicted to substances are the same people least influenced by price increases.

NARGON believes it would be better for the next Parliament to take a considered view of the proposed reforms and ensure the resulting legislation is balanced.

This Bill is a significant change to alcohol regulation and should not be rushed.

AUGUST 2011 FMCG

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Has your team been part of a charity event, opened a new factory, or dreamed up a colourful promotional activity? Send us your favourite photo and go in the draw to win a B_E_E giftpack, the only household cleaning range that carries New Zealand’s national eco label Environmental Choice NZ. So you can take it easy knowing every ingredient is safe. Made here in New Zealand! Just email your high res image with a caption and your contact details to: editor@fmcg.co.nz

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