FMCG October 2010 by mediaweb

incorporating

9 421902 251016

OCTOber 2010 Volume 16 No 9 $9.15

THE BUSINESS OF MANUFACTURING • LOGISTICS • SUPERMARKETING

NZ’s #1 Eyecare product is now TINTED!

A NEW STAR IS BORN New Youthful Radiance 2 in 1 Tinted Eye Roll-On

MAGIC AWAY DARK CIRCLES NEW

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The 1st tinted eye roll-on that works immediately on dark circles

The NEW Garnier Roll-on Range

Available in 2 Shades Fair to Medium & Medium to Dark

RRP: $17.39

NZ’S NO.1 EYECARE PRODUCT

IS NOW TINTED! NZ SUCCESS Garnier Caffeine Eye Roll-On is New Zealand’s No.11 Eye Moisturiser (both value and volume) delivering $600K2 to the category since launch. In the first year for launch the Caffeine Eye Roll-on grew the eye moisturising segment by $478K or 35%.3

INTERNATIONAL SUCCESS HUGE SUCCESS in the UK and throughout Europe – even bigger than Caffeine Eye Roll-on! Already #1 in the Australian Eyecare segment after launching in March 2010!4 KEY REASON TO BELIEVE: NEW INGREDIENTS + TECHNOLOGY Lemon essence – Clarifying and brightening properties Caffeine – Helps stimulate the microcirculation of the skin Mineral pigments – For instant, flawless coverage of dark circles Roller-ball – Massaging action with an instant cooling effect *October - December

1 Aztec TKA MAT ranking to 18th July 2010 2 Aztec TKA Sales from WE 5th April 2009 to WE 18th July 2010 3 Aztec TKA MAT to 28th March 2010 4 Census Panel Qtr to 01/08/10

Features

contents

6 Editor’s note 8 Industry news 26 What’s hot

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20 Quake Christchurch stores recover

38 Olive Festival Hawke’s Bay

Category checks

28 Skincare 34 Ice cream and toppings 40 Hummus, dips and pates

Regulars 16

Beef & lamb Competition lifts the game

Fresh and local In season

FGC Liquor law split

GS1 Identitification under question

25 Nargon

Major changes coming for liquor laws

OUR COVER Garnier’s new product Anti-Dark Circles 2 in 1 Tinted Eye Roll-On, is a two-in-one solution for tired eyes.

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44 Grocery business

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

55 Legal ‘Sniff ’, ‘bang’, and ‘slurp’

64 Snap Spotted out and about

65 Diary Your guide to upcoming industry events

50 Feature Biodiesel

53 Nargon

Getting lean to beat the recession

54 Directory

56 Feature

The boat has sailed NZ wines as investments

58 Industry news 63 Profile

Brian Blake, DB Breweries

A harmonious addition to the Red Box range

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

HTR_ING_10155

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

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

e ditor ’s note Vol 16

No 9

october 2010

issn 1175-8279

Incorporating

Serving the business of manufacturing, logistics and supermarketing

PAULINE HERBST – editor editor@fmcg.co.nz

Ashley Kramer – SENIOR account manager Mob: 021 232 9401 admanager@fmcg.co.nz

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

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

Design Cherie Tagaloa

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

Printing & Pre-press Benefitz

Publisher Used on a white background

Mediaweb Limited PO Box 5544 Wellesley Street, Auckland 1141 Used on a black background Phone 09-845 5114 Fax 09-845 5116 www.mediaweb.co.nz The opinions and material published in FMCG are not necessarily those of the publisher except where specifically stated. © 2010 Mediaweb Limited. ISSN: 1175-8279 (Print), 1179-8718 (Online).

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

Some of our st fa est moving s consumer good es ac pl m fro e com like these; the King New Zealand in Salmon Farm gh ou or lb ar M e th Sounds.

Environmental messages I was still overseas when the devastating earthquake hit Christchurch. The world stepped back and took notice, stunned I think as much by the scale of it as by the fact the whole city survived. Haiti was an immediate frame of reference. What struck me most was the way Cantabrians handled the crisis. By the afternoon the industry had received their first memo from the Foodstuffs team, alerting them to issues with DCs and explaining their plan of action. ‘Business as usual’ was taken to a whole new level with stores operational within about 48 hours in the worst case scenarios and people working through aftershocks and structural assessments. Some members of the FMCG team were affected and I remember one Skype meeting where a gasp was followed by, “Don’t worry, it was just another aftershock. We haven’t had one in a while so I’d relaxed a bit.” Hard to begin to imagine unless you’ve lived through it. So we thought we’d talk to people who had and interviewed both Progressive and Foodstuffs about their strategies for dealing with this crisis. The stories offer one point of view but the images they sent

Pauline Herbst, Editor

through tell more than the proverbial thousand words. Mother Nature can be a cruel mistress. In a small step towards a more environmentally friendly world, Gull released New Zealand’s first service station available E5 biodiesel, Gull Diesel Max and the team was there to watch the first tank filled. Other news likely to affect service stations and other retailers are the still hotly debated reforms coming to liquor laws. Both the Food & Grocery Council and Nargon give comment in their columns. It’s a contradictory world we live in. The FMCG industry is notorious, perhaps unfairly so, for being ruthless in business, as well as one of the most forward thinking, progressive industries to be in when it comes to supply chain and business innovation. For an industry so closely tied to what the earth provides it’s encouraging to see a bit of a slow food movement taking hold within the pace of progress. All those hearty sounding buzz words like authenticity and fresh from the farm actually mean something. At the risk of sounding like an environmental activist, let’s hope it’s not too late.

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

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

news

Cuisine without compromise entertainment and healthy food category in Last month LHF (formerly Lisa’s Healthy New Zealand, and the fact that LHF, through Foods) officially opened its brandits brands, has extended its strong position new, purpose-built plant in Avondale, in the market. Auckland. The new building, opened by In a market characterised by closures the Prime Minister John Key, covers an and battening-down-the-hatches, this area of 3800m² and combines all existing new investment marks the remarkable operations that were previously conducted confidence of a company that has grown out of five individual business units, as consistently through the years. Starting out well as off-site storage locations. The as a small home-kitchen business, today capital investment in the acquisition of LHF has become a company with wellthe property, the building of the factory known and loved brands that have achieved and upgrading of plant and machinery, household-name status in New Zealand. amounted to $12 million. As part of the investment, some of the LHF now operates as Life Health Foods LHF chairman Pierre van Heerden LHF brands also received manufacturing with a comprehensive portfolio of well(left) and GM Bennie Hendricks. process upgrades. With the help of process loved Kiwi brands such as Lisa’s, Naked engineers, the Lisa’s dip manufacturing Organics, Olive Grove, Sahara, Bean process was totally redesigned to not only ensure quality, Supreme, Kato, Food by Chefs and Prep Kitchen. consistency and safety of products, but to also afford the 100% New Zealand owned, the LHF brands each have their opportunity to retain Lisa’s market leadership position through own identity and unique product offering but are united with constant product innovation. An example of this innovation a common vision: to celebrate life and bring to the market a is the launching of the Lisa’s Toppings range earlier this year, wide array of foods that, in the words of their Naked Organics bringing a fresh new range of dip products to the discerning brand, offer “cuisine without compromise”. New Zealand consumer. The new facility also includes the In his speech, Key referred to the Kiwi spirit of ingenuity Bean Supreme manufacturing plant, with improvement in and that the Government was keen to see entrepreneurial processes and the addition of new equipment, now affording businesses grow and flourish in New Zealand. Key pointed LHF the opportunity to expand its fast growing Australian out that he felt New Zealand food manufacturing could play export product range and to capitalise on the growth in much an important role in food innovation and safety, focusing on needed alternate forms of protein. supply to countries like Australia and China. With reference to Hendricks says: “New Zealanders are moving rapidly into the diversity of the LHF workforce, Key said that he felt New a modern era of cuisine as a way of life, and with our new Zealanders have turned diversity into a strength through their factory, processes and product innovation, LHF is a company positive embracing thereof. well poised for growth. Bennie Hendricks, general manager LHF, said that relocation to the new site was necessitated by capacity constraints at existing “At LHF we approach the table with much humility, recognising that the people who eat our foods do so with an expectation facilities and to cater for LHF’s expansion strategy through product innovation. This reflects positively on the growth of the to be delighted and well cared for.” l

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n ews New World goes interactive New World suppliers keen to talk directly to their key consumer markets now have a precision tool at their fingertips – the New World Direct interactive online campaign planner. The Foodstuffs nationwide cooperative has refreshed its direct marketing tool, New World Direct, with a portal that will make it easy for suppliers and their advertising agencies to plan precisely targeted marketing campaigns via post or email. New World Direct campaigns have already achieved a 10 percent average consumer response rate compared to the three percent average industry standard. They include growing sales, launching new products, cross-selling customers to a new range or reactivating lapsed customers. “Our interactive portal newworlddirect.co.nz helps users understand the service, play with data numbers and even plan a campaign using the timeline, budget and briefing tools,” says Fiona Stewart, marketing manager for Foodstuffs Wellington. “To drive the campaigns we use data from Fly Buys, the largest consumer retail database in New Zealand, which has a reach into more than 70 percent of the nation’s households through its customer base.” The association between New World and Fly Buys sees Fly Buys purchases accounting for more than 70 percent of New World’s total sales value across a total of more than 130 million customer transactions per year at the supermarkets nationwide. “New World Direct is the gateway for suppliers to contact these high-value customers with relevant consumer offers. The marketing tool allows suppliers to talk directly to their target market via email or post,” Stewart says. New World Direct can provide data quality, customer reach and measurable results. • Data quality: Fly Buys holds sales, demographic, socio-economic and lifestyle data about its card holders sourced from sales at New World and more than 40 other Fly Buys retailers. Membership and transactional data is overlaid with other market databases for a holistic picture of the customer. • Customer reach and worth: More than 1.3 million New

Zealanders actively use their Fly Buys cards, supplying a wealth of information to the Fly Buys database. Fly Buys members spend nearly 50 percent more per week at New World than non-Fly Buys shoppers. • Measurable results: All sales by value and units are recorded for each direct marketing campaign allowing further insights and profiling of suppliers’ target customer groups. “We can provide in-depth customer insights that have many benefits for suppliers, including insights into consumers’ grocery shopping behaviour, right to the level of the individual shopper. “Every insight is data-based and can always be linked to a customer and that customer can be contacted using direct marketing at any time. Additionally, insights are specific to supermarket shopping behaviour, so any recommendations from the insights can be applied immediately without tailoring.” Analysis caters specifically to suppliers’ needs and can be provided at product, basket and category levels. Quantitative information about customers includes demographic and psychographic data. New World Direct will provide a centralised campaign management service. All campaigns, whether nationwide or in one or two regions only, are managed through Foodstuffs Wellington. Customers can be targeted by Foodstuffs region, or by city, town or store. Roll-out of campaigns can be staggered, samples can be sent and packaging and mail production is taken care of. “We’re offering an end-to-end service from campaign brief to execution. This includes provision of associated services though suppliers can manage some parts of the campaign themselves if they wish,” says Stewart. New World customers will appreciate the campaigns because they will be relevant to them and their shopping preferences. The campaigns offer an opportunity to gain more value from everyday shopping through product and price offers, discounts, prize draws and Fly Buys points, she says. “We believe customers will welcome the campaigns conducted by suppliers through New World Direct because they come through the trusted source of Fly Buys, a programme they already belong to and expect to get relevant and valuable offers from,” says Stewart. l

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news Nutritionist wins prestigious award The New Zealand Nutrition Foundation and Kellogg New Zealand have announced Helen Eyles as winner of the 2010 Nutritionist Development Award. Eyles is a research fellow working in the Nutrition & Physical Activity programme at the Clinical Trials Research Unit, University of Auckland. She won the award for her contribution to improving eating habits and preventing obesity, while also trying to address nutritional inequalities. Eyles’ PhD formed part of the Supermarket Healthy Options Trial (SHOP), in which researchers gave tailored nutrition advice coupled with price discounts on healthier foods. The trial is the first of its kind worldwide supporting a GST-type reduction on selected supermarket foods. Eyles plans to use the Nutritionist Development Award to attend a top nutrition conference in Melbourne next year, as well as visiting research associates in Australia to promote closer collaboration on reducing salt in the New Zealand diet. Julian Ng, marketing and innovation manager Kellogg New Zealand, says this award helps to recognise and support the outstanding local talent starting out on their career in nutrition. “Helen is clearly a talented and dedicated nutritionist. Kellogg’s is delighted to be supporting her proposed international collaborations and innovative approaches to impact the general wellbeing of New Zealanders,” says Ng. Kellogg’s has been a long term supporter of the Nutritionist Development Award, which was first established in 1995 to promote professional development for newly-qualified New Zealand nutritionists and as an investment in the long-term improvement of nutritional status amongst New Zealanders. l

New shape for Ocean Spray Cranberry brand Ocean Spray will have a brand new look when the bottles hit the shelves this month. Eager to deliver a new bottle shape to fit consumers’ needs, Ocean Spray conducted extensive research into what would make the perfect bottle and found that in the eyes of the consumer, rectangular beats round. The new rectangular bottle is easier to grip than the previous round bottle, allowing consumers to pour with just one hand. The new bottle will also fit easily into most fridge doors, allowing Ocean Spray to fit snugly next to the other drinks in the fridge. The rectangular shape also optimises storage space in the pantry. Ocean Spray’s new look is on the exterior only; consumers can expect the same crisp, refreshing Ocean Spray taste in every bottle. Ocean Spray’s full range of seven juice drinks will all cut a fresh new figure: Cranberry Classic, Cranberry Light, Raspberry Cranberry, Cranberry Pomegranate, Cranberry Blackcurrant, Ruby Red Grapefruit, and the refreshing new flavour, Ruby Red Grapefruit & Pomegranate. l

Charlie’s appoints Hunter Premium beverage manufacturers Charlie’s Group has appointed creative agency Hunter to both its Charlie’s and Phoenix Organics folios in Australia and New Zealand. Ron Curteis, marketing and export manager for Charlie’s, wanted “an independent agency that could work in both markets simultaneously rather than appointing two separate agencies”. Hunter’s initial focus will be on launching Charlie’s into the Australian market, whilst maintaining the brand in New Zealand, before increasing activity for Charlie’s and Phoenix Organics in both markets. Hunter’s creative director Matthew Gibbins has previously worked across the Innocent drinks brand for five years in the UK. Hunter loves to work with entrepreneurial people and challenger brands; Charlie’s Group is a perfect addition to a client list that currently includes Grolsch, Rhodia, Dr Follicles and more. l

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n ews Cocooning with new drinks “Bundaberg Brewed Drinks has been in the business of crafting premium adult beverages for many years, starting with our famous Bundaberg Ginger Beer. From a branding perspective, consumers tell us they appreciate that Bundaberg Brewed Drinks remains a humble, family-owned brewing company, still based in Bundaberg, Australia. We’ve been quietly brewing our beverages for many years, using the same age-old methods. They find this a refreshing change compared to those brands which are owned by large global corporations.” The new flavours use no artificial flavours or colours, allowing the natural colour of the guava, blood orange and pink grapefruit to shine through clear 340ml bottles. The beverages feature real fruit juice and are available in four packs. The new range will be progressively rolled out to supermarkets, cafes and convenience outlets across 4 : 5 Australia 7 P M and New Zealand. l

NEED SOMEONE ON THE INSIDE? Talk to New World Direct We have access to over 2.3 million Fly Buys card holders, so we have the potential to see into the shopping baskets of over 70% of kiwi households. A direct marketing campaign with us can help you: • Get: Win back lost customers and attract new ones • Keep: Talk to your existing customers to keep them engaged • Grow: Increase sales to your current customers • Launch new products: to the most relevant audience. Which is all very handy when it comes to planning your next marketing campaign. But as much as we can talk about all the benefits of New World Direct, the proof is in the pudding. And the veges. And the cleaning products. In fact, whatever’s on our supermarket shelves. Because people who use New World Direct get a measurable response and that’s valuable.

To get great results from your next campaign, head to newworlddirect.co.nz now.

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A huge shift in entertaining at home and café style lifestyles has led to Bundabergbased brewing company, Bundaberg Brewed Drinks, launching a new ‘café’ range of flavours. The new flavours, Bundaberg Guava, Bundaberg Blood Orange and Bundaberg Pink Grapefruit, have been created to allow consumers to “enjoy the café experience and bring it home with them”, says chief executive John McLean. “We’ve really noticed a growing trend for consumers entertaining at home. When it comes to choosing simple luxuries, consumers are very discerning, brand conscious and definitely favour truly unique flavour offerings. They want the very best for themselves and their family and friends.” McLean said that crafting a boutique range to appeal to this market extension N D Dwas 0 1an 2 easy 3 _ C . p d f forP the a gcompany. e 1 1 7 / 0 9 / 1 0 ,

news

Shane and Anthony Mix Ltd 2

Anthony pouring Dominate Waxx

A decade of Kiwi domination Dominate hair products is celebrating its 10th birthday this month. Initially created by Shane Young and Anthony Gadsdon in Young’s Auckland barbershop with little more than a credit card and a second-hand washing machine pump, the brand has grown to become number one in gels, shapers and waxes in supermarkets nationwide and has sold over six million pots of Dominate products worldwide. They’ve come a long way from their first order for $50 worth of product. Ten years ago Young was working as a hairdresser at the Cutting Edge in Shortland Street and Gadsdon was in his second year working for Progressive Enterprises and could see a gap in the market for an alternative to the American men’s hair styling product Dax Wax. Gadsdon and Young met at a friend’s party, got talking, and soon the pair were both working late into the night in Young’s kitchen perfecting the Dominate product. Young’s background in hair care and Gadsdon’s in grocery proved to be a dynamic partnership and they developed a range of strong-hold, salon-quality hair wax at supermarket prices. Today both Primal Earth and Dominate are made on site at a factory in Mangere and Gadsdon and Young trade under the company name Mix Ltd. They employ 27 staff and sell to 3200

retail outlets across 32 retail chains in New Zealand, Australia and South Africa. Also on the payroll is Young’s old flatmate Nicky, who is now married to Gadsdon. Coming from a strong marketing background she works as Dominate’s brand manager. Young’s wife Asher is brand manager for the two newer lines, Shockwaves and Primal Earth. Dominate has spent the past 10 years creating a strong brand and business platform to ensure continued future success: building manufacturing expertise, improving processes and systems and recruiting great staff. The company sells strongly into Australia, where 70% of its production heads, and is fielding a huge amount of interest from the USA, Asia and the UK. “We’re confident that Dominate and Primal Earth can become the most successful men’s grooming brands in Australasia and our long-term goal for the next 10 years is to make them truly global brands,” says Gadsdon. “Over the last 10 years we’ve come up against obstacles that seemed insurmountable at the time, but we dug deep, worked through it and survived. When you do that often enough, eventually nothing that comes at you, no matter how big or small, seems like a problem… to the next 10 years, we both say bring it on.” l

White hot summer Garnier Nutrisse Radiant Blondes uses a new generation ammonia-free hair colour formula with uncompromising efficiency to cover 100% grey hair. The no-drip, melting creamy texture spreads easily with no tingling sensation and has a fruity fragrance. Blonde hair is more fragile and develops greater sensitivity to everyday outside aggressions making it difficult to maintain radiance, lustre and intensity.

FMCG october 2010

Enriched with fruit oils, the formula deeply nourishes for silky smooth hair that is replenished with nutrition. Three new radiant blonde shades have been formulated to illuminate every face. As with all Nutrisse Colours, each pack contains a two-use conditioner so users can maintain healthy nourished hair for longer lasting colour. l

n ews Bluebird flavour finalists Four lucky New Zealanders are set to make a packet as Bluebird announces the finalists in its popular Do Us A Flavour competition. The competition attracted over 28,000 entries from all corners of the country and four chip-lovers have their flavours set to hit the shelves in supermarkets, dairies and service stations around New Zealand. The winner will scoop $20,000 and two percent of sales for as long as their flavour is sold, as well as making national chip history. The three runners up receive $5000 each. Judges had the unenviable task of sifting through a mountain of entries to select just four finalists. The four flavours are about to be put to a nationwide taste test as New Zealanders are urged to cast their vote on Bluebird’s newest chip flavours – the ultimate winner being decided by a combination of sales and online public votes. The faces behind the flavours are: medical recruiter Hayley Kyte from Queenstown (Cheesy Garlic Bread); Bay of Plenty mum Tiina Sirkku from Ohope (Butter Chippin’); mum Mirta Fagundes dos Santos (Paua Fritters with Lemon Wedges); and New Plymouth family man David Martin (‘Sunday Roast’ – the crispy bits left in the pan).

Since discovering their flavours were selected back in July, the four finalists have been sworn to secrecy, not able to breathe a word to anyone, not even their families. Bluebird managing director Gerard Smith, says “We were confident Kiwis would come up with some incredibly creative flavours but the quality and sheer volume of entries was unbelievable. And even more amazing when you think the challenge was not only coming up with a great flavour, but people had to upload a creative and original image depicting their flavour. Where we had multiple entries of the same flavour, judges had to look at the photographs and also any inventive flavour names to pick our four finalists.” Online voting opened at midday Monday 20 September and closes at midnight Saturday 6 November with the ultimate winner revealed in early December. l

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news Marmite’s centenary Marmite is celebrating its 100th birthday with a ‘Bringing Home the Kiwis’ campaign. From August 30, New Zealanders were invited to enter at www.marmite.co.nz and tell Marmite judges why they, or their loved ones, deserve to win one of 100 oneway flights home from anywhere around the world this December. The site is accepting entries until the promotion closes on October 31. People can enter themselves or a friend, while loved ones of those nominated can pledge votes of support. Though Marmite judges are only interested in genuine entries, they are also encouraging people to ‘lay it on thick’ when it comes to stating their case, and expressing their heartfelt desire to switch Mistletoe for Pohutukawa this yuletide season. The site allows users to upload images and video footage to support their cause while each entry can be edited and evolved right through to the close of the promotion – all in a bid to ensure Marmite judges can make the most informed selections on the day. Marmite brand manager, Hayley Findlay of the Sanitarium Health Food Company says: “One hundred years is a great milestone for a Kiwi brand. Marmite has such rich heritage and deep connection with Kiwi consumers, its centenary

celebrations had to have absolute ‘wow’ factor. It had to excite people. “And what is more exciting than reuniting 100 homesick Kiwis with their loved ones this Christmas? We’re looking forward to a patriotic response!” Findlay confirmed no New Zealand brand has ever made the pledge to fly so many people home from anywhere around the world, meaning Marmite is making history more than once in 2010. “There are over 600,000 Kiwis living somewhere other than New Zealand, and we know that in terms of the things they miss most about home, Marmite is usually near the top of their list. So instead of just patting ourselves on the back for turning 100, we thought it would be a great idea to bring some of those Kiwis home to family and friends, home for Christmas and home to the taste of Marmite.” Marmite’s centenary marks 100 years since Marmite was registered and sold here in New Zealand. For almost 35 years, Sanitarium imported Marmite from Burton-on-Trent, Staffordshire, England until a New Zealand version was formulated in the mid 1940s, making Marmite the brand Kiwis have truly made their own. Marmite has produced special commemorative centenary jars of Marmite available to consumers now. l

Farro Fresh opens second store Farro Fresh opens their second store in Constellation Drive, on Auckland’s North Shore, in the last week of October. James and Janene Draper opened their first concept store four years ago in Lunn Ave, Mt Wellington “Our goal was to provide food shoppers with the largest range of artisan food products at very affordable prices,” says Janene Draper. “The idea was a first in food shopping; you could call in for milk and potatoes, and pay no more than a supermarket, or find something very special for your dinner guests – everything from the ordinary to the extraordinary. Many of our current customers travel from the shore; now they will have their own store.” Farro strongly believes in supporting small New Zealand producers and sourcing the best that is available from throughout our bountiful county. Every new product is quality checked and must get the Farro seal of approval before it makes it onto the shelves. As well as confidence and good value, Farro

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likes to provide customers with sound product knowledge. Farro Fresh Constellation Drive will have French breads and croissants baked fresh daily on-site. Bennett’s of Mangawhai will have its own in-store chocolaterie. There will be an extensive butchery and produce area, fresh seafood from Ocean’s, pre-prepared lunch items and take-home meals as well as an extensive range of cakes, bakery products, cheeses and deli items, flowers, wines and useful cookware. The new store is 20% larger than their flagship Mt Wellington store, allowing for even greater choice, including generous discounted store-wide ‘floor stacks’ and pallet prices. Farro Fresh shore customers will get the same shopping experience and atmosphere that have made Lunn Avenue such a success, including free lunchtime cooking demonstrations with Ray McVinnie and other guest chefs. And with over 100 on-site parks, parking is no problem. l

n ews Snack sized The new Huntley & Palmers snack size range is the ultimate cracker for topping and dipping. They’re the perfect size to pop into your mouth with a wedge of cheese or to enjoy with a scoop of dip. The new range comes in three flavours: Olive Oil & Sea Salt, Sunflower & Pumpkin Seed, and Sea Salt with a Hint of Chilli. Perfect for the upcoming summer barbecue season, suggestions include crackers and drinks, afterwork snacking, entertaining and platters. l

Reel in and win Nestlé Professional and Shimano have again teamed up for the third year running to give coffee drinkers a chance to win the ultimate fishing pack. This year’s promotion – ‘Net this Catch’ – gives Nescafé buyers the chance to go into a draw to win an ultimate fishing pack. Valued at over $1000, the prize pack includes a swag of fishing essentials such as a Shimano Tyrnos Single Speed Reel, Shimano Backbone Elite 24kg R/T Rod and Smaster Sunglasses. To go into the prize draw, shoppers need to buy either a 500g or 1kg can of Nescafé Classic or a Nescafé Espresso 500g, Nescafé Decaf 375g or Nescafé Fine Blend 500g, between 1 November to 10 December, as per the promotional terms and conditions. l

Fish fly to London New Zealand’s Regal King Salmon was on the lips of 250 VIPs last month at a high profile Air New Zealand event at the prestigious Saatchi Gallery in central London. The specially prepared King Salmon fillets were flown to London fresh from the New Zealand King Salmon farms in the Marlborough Sounds. The high profile event saw VIPs dining on the best of New Zealand food and wines as Air New Zealand announced the in-flight offering on its new Boeing 777-300 ER aircraft. NZ King Salmon’s general manager of sales and marketing, Don Everitt, says it was a wonderful opportunity to be able to provide Regal Salmon for the who’s who of London. “We do not currently export to the United Kingdom and had to pull a few strings to get our salmon into the country but we are pleased that we have been able to pull it off as this opens a lot of doors for us.” Grant Rosewarne, CEO of New Zealand King Salmon, says: “Whilst Atlantic salmon is very common in the UK, the premium King Salmon species, almost exclusively grown in New Zealand, is a true food delicacy and unknown to British consumers.” New Zealand King Salmon’s ambition is to export to the United Kingdom in the long-term. l

Roll away dark circles Daylight saving is upon us, which means summer is almost here. The cover of our October issue sports Garnier’s new product Anti-Dark Circles 2 in 1 Tinted Eye Roll-On, a two-in-one solution for tired eyes. Enriched with natural active ingredients – caffeine, lemon essence and mineral pigments, the Eye Roll-On provides instant coverage with a calming effect, moisturising care and a tinted concealer. Caffeine stimulates micro-circulation in the skin, while the lemon essence – known for its clarifying properties – works to reduce signs of fatigue. A UV filter in the formula protects the eye contour against the effects of UV rays which can contribute to the appearance of wrinkles and sun spots. Plus the metal roller ball massages to stimulate circulation while cooling and refreshing the under-eye area. The Roll-On has a high concentration of mineral pigments to provide full coverage over dark circles. Its long-wearing properties provide even and natural-looking camouflage, thanks to tone-on-tone shades. Dark circles are instantly concealed, their intensity and extent are diminished and the eye contour appears hydrated and smooth. Anti-Dark Circles 2 in 1 Tinted Eye Roll-On is available in two shades (fair to medium skin and medium to darker skin) from this month. l

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b e ef & la m b

Kim Doran is a personal assistant at Retail Meat New Zealand. Email: kim@rmnz.co.nz.

A competition brings out the best in any industry, as demonstrated clearly by the recent Alto Young Butcher of the Year and Retail Meat Industry Training Organisation (RMITO) Butcher Apprentice of the Calum Sutherland, Year contests. In this event, ‘young’ butchers are those New World West 30 or younger, with the apprentice category, a new adEnd, Rotorua and dition this year, open to any butchers employed on an Damian Hanley, New World Hillcrest, apprentice contract. In its third decade, the competition final saw five Hamilton. young butchers and five apprentices compete against their peers, displaying the wide range of skills required in their day-today roles. Each competitor faced a written exam, an interview and 90-minute cutting test, breaking down a beef rump, number 20 chicken, pork shoulder and lamb loin into an array of both compulsory cuts and cuts of their own choosing, illustrating individual flair. This year’s grand final included a new on-stage challenge for the five young butchers. Alesha Ross, New World Victoria Park, Re-enacting a butchery store Auckland (runner-up Young Butcher). scenario, MC Oscar Kightley, played a variety of ‘typical’ customers, enabling each contestant to display their customer service skills in front of 300 diners at the Grand Final black tie dinner. Having thrilled his ‘customer’, as well as the audience, by bursting into song, Calum Sutherland from West End New World in Rotorua took out the Alto Young Butcher of the Year, repeating his success of 2005. 16

FMCG october 2010

Competition lifts the game Singing for one’s supper. By Kim Doran

Leaving the on-stage element to the more experienced competitors, Damian Hanley from Hillcrest New World in Hamilton beat four other finalists to be named RMITO Butcher Apprentice of the Year. Less than six months into his apprenticeship, Hanley made an impressive showing in all elements to take the title. All the effort and practice is worth it for the two winners, both claiming opportunities to extend their skills and experience. Sutherland is off to Europe and the UK on a study tour, including a trip to the world’s largest food fair in Cologne, Germany, while Hanley has the chance to learn from some of the best across the Tasman through a study trip to Australia. And with one retail meat event completed, another is kicking off. The Great New Zealand Sausage Competition has once again begun the search for New Zealand’s supreme sausage. Hundreds of sausages will arrive in Auckland to be tasted and scrutinised by a number of sausage connoisseurs on 17-18 November. The process involves mystery shoppers buying the sausage entries in the week leading up to the competition. This year there are 12 categories, allowing for a diverse range of snarlers to compete, from traditional beef to smoked paua and garlic. Butchers and smallgoods manufacturers can put their best foot forward to prove their top products, introducing sausage-loving consumers to new and innovative products tried, tasted and rewarded for their excellence. It is fair to say, competitions not only lift the game within an industry, but boost morale and remind business owners what it takes to train top skilled young people and produce the best quality food in New Zealand. Details of the Great New Zealand Sausage Competition and entry forms can be found at www.sausagecompetition.co.nz.

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

ON THE WAY

Strawberries, globe artichokes, new potatoes.

IN THEIR PRIME

Asparagus, New Zealand hot house tomatoes, New Zealand navel oranges, lemons, limes, and the first tangelos. Snapper, whitebait, Pacific oysters, green lipped mussels and scallops. Cervena, if you have customers who can afford it, and veal.

ON THE WAY OUT

Mandarins, persimmons, yams, Brussel sprouts, Kiwi red onions. Hoki, hake, ling, piper, orange roughy.

SEAFOOD Always a good time for kahawai and the price is always right. The fresh season for ling will run till November and was approved of by all tasters in our recent fish tasting of fresh fish available in the market at this time of year. The season for the beautiful blue and silver moki is again under way and this is a very good option at this time of year, reasonably priced too. Flounder will be coming out of their moribund state from now on so volumes are about to increase as we move into the warmer weather. Mullet become more available from now on also. Porae turns up in the market somewhat inconsistently, but at a recent tasting with a panel of 10 top chefs this is the fish that came out on top. Better priced than most other fish in the sea – so keep an eye out for it Snapper are schooling in the Hauraki Gulf again so expect the numbers to go up and – with luck – the price should come back. Trevalley is usually well priced and came out well in the taste test also. The main season is about to start Turbot and brill are turning up in our fresh fish markets more consistently now and were considered by our tasting panel to be in the top three and a good entry fish for customers that do not like strongly flavoured (fishy), fish. Warehou is another southern species. The

main season is on and the price is always reasonable. MEAT Again expect no real drop in prices for New Zealand red meat over the next month. Sheepmeat From both the FMCG and sheep farming sector’s point of view the worst case scenario has happened. Heavy snow right at the peak of lambing has brought heavy lamb and ewe fatalities in the south. The sheep farmers need strong numbers now to capitalise on firm prices and slow the shift to dairying. This could be a big blow to the sheep industry and also the retail lamb market, as with lower stock numbers the demand-supply situation can only worsen. Beef and Lamb New Zealand recently released its new season outlook and it confirms the precarious state the average farmer is in. It does however point to the strong state of the market, with sheepmeat predicted to be firm this year. Howeve, the exchange rate will always be a major factor. Lamb schedules are still high and the trend is steady. Mutton schedules are still at record levels on short supply. Beef Local trade prices for beef are approximately $0.60/kg ahead of last year and trending up. Future beef production is estimated as down and prices up, according to Beef and Lamb New Zealand’s new season’s forecast, but prices will be sensitive to the currency fluctuations. Cervena Spring venison schedule rises are continuing, and the trend is up. As we move towards summer prices usually fall, but with low supplies predicted (22% down on annual average), the traditional summer fall in prices may not be as great as past years. Veal Veal is available for another month or so and is the furry meat that is best value for money. Look out for the new rose veal entering the marketplace this month also. Pork Some say the Australian pork we are getting is of better quality than ours, as it generally

has a higher pH. Pork with a higher pH is considered to have a much better flavour profile (this is the opposite with beef). Well, that is as may be, but give me 100% New Zealand pork – at least I know what’s in it. FRUIT Apples are tailing off and it is imported rubbish for a while, though they look good. The new season Hass and Hayes (pebbly skinned) avocados are here in bulk and the price has dropped back. This is the time for our local citrus varieties. Tangelos will be good buying from now on and are popular with customers. Pear imports are here again. Still a little while to wait for Kiwi stonefruit. First in late November will be the early cherries, but they have very poor shelf life. The first New Zealand strawberries arrive in a month or so. It seems this fruit hits the market earlier each season. VEGETABLES Artichokes (globe) will be in the markets in a month or thereabouts with supply increasing. The first New Zealand new season asparagus spears are here. Early prices will as usual be exorbitant but will soon fall back this month.

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Katherine Rich is the CEO of the New Zealand Food & Grocery Council. Email: Katherine.rich@fgc.co.nz

Liquor law split Crackdown based on stereotype and urban legend.

The reaction to the Government’s recent package of liquor law reforms was raucous, yet predictable. One side castigated them for not going far enough and refusing to implement all 156 recommendations in the Law Commission’s 2.4kg report on alcohol. The other lobby bemoaned the return of ‘Nanny State’ and ‘Fun Police’ policies under a National-led administration. On reflection, the truth is probably somewhere in the middle and certainly a lot more complicated. It was naïve to expect the Government to unilaterally accept all of the Law Commission’s recommendations. Some of them were unworkable, others politically impossible.The average Kiwi drinker would be outraged at a 50% increase in excise tax overnight. Similarly, a total ban on alcohol advertising and sports sponsorship was impractical. The reforms were well flagged. Unfortunately a hardcore minority revel in the twin excesses of binge drinking and under-age drinking.The Government’s focus on harm minimisation rather than punishing all moderate drinkers was the common sense approach. To date, much of the media focus has been on the purchasing age. This will be the subject of a conscience vote in Parliament. Essentially, the options are a uniform age of 18 years, a uniform age of 20 years or a split age of 18 for on-licences (bars, restaurants, clubs, pubs) and 20 for off-licences (bottle stores, supermarkets). Dairies and convenience stores will be progressively pushed out of the market. The unexpected crackdown on Ready To Drink beverages (known as RTDs or the more derogatory term alcopops) caught many by surprise. The proposals would see RTDs limited to a maximum alcohol content of 5%. Looking to eliminate the trend towards larger cans and stronger beverages, each RTD container would not be allowed to hold more than 1.5 standard drinks. Additionally, the Ministers of Justice and Health will gain the power to ban specific products, which are overly targeted at or attractive to minors. While the official material suggested this provision was aimed at alcoholic ice18

FMCG october 2010

By Katherine Rich

blocks or alcoholic milk (and who knew such products even existed?), it is clear that it could equally be used against RTDs. Such drinks have long been criticised for appealing to under-age drinkers through their sweet taste and use of bright colours. These changes were largely unexpected because they were not recommended by the Law Commission. The proposed reforms in this area go too far because they are based on stereotype and populism, rather than fact and analysis. Official figures show a slight majority of RTD drinkers are over 34 years of age – a long way from their teenage years. Many enjoying RTDs are in their 20s, 30s, 40s and even 50s, with women showing a preference for a light-coloured spirit base and men for a dark-coloured spirit base. Surveys consistently show there is a stronger relationship between consuming RTDs and consuming spirits, than between RTDs and beer.That suggests that drinkers who are pushed away from RTDs will tend to head towards stronger spirits, rather than the comparatively lower alcohol of beer. This should not come as a surprise, because we have seen it happen before. The previous government identified so-called ‘light spirits’ (14-23% alcohol) as a problem drink for young drinkers. The end result was that young people switched quickly to full-strength spirits or RTDs, and older New Zealanders (including my Nana) still pay more for their sherry and port. While there are some valid concerns about superstrength RTDs, at least their alcohol content is clearly listed and consistent.This situation is probably safer for an inexperienced drinker compared to free-pouring from large bottles of straight spirits. We hope Parliament remembers the clear lessons from the ‘Sherry Tax’ debacle before reaching for the legislative sledgehammer to crack the RTD nut. If it doesn’t New Zealand risks creating negative unintended consequences without addressing the real problem.

gs1

Identification under question A new barcode could force change. By dr peter stevens We hear a lot in the media and from commentators and industry leaders about the need for NZ to move away from trading commodity goods towards focusing on what the market needs and selling value-added products, eg: • John Key levelled veiled criticism at our Shanghai Expo stand by saying that New Zealand needed to be seen as more than just a pleasant holiday destination. “Where is the promotion of New Zealand as a leading innovative nation?” he asked. • In the wool sector, there has been seemingly never-ending discussion as to how to move into capturing more of the value chain. • In the meat industry, there has been forthright discussion of the need to develop an integrated supply chain with branded products. • In the pipfruit sector there has been discussion around the fragmentation of the export effort into almost 100 exporters. In this context, I have recently been involved in some interesting discussions on the rollout of the new identification technology GS1 DataBar by retail heavyweights Walmart & Loblaws. You may not know DataBar yet as it is not a true global standard for identification till 2014, but you will see it in your local supermarket on imported plums, apricots, nectarines and the like (interestingly in Hastings last week the local Pak’nSave had New Zealand Enza-brand apples with DataBar on them… perhaps export fruit?) DataBar looks just like a tiny barcode on the PLU sticker of an individual piece of fruit. The idea is that loose fruit (apples, melons, citrus, bananas, etc) will be able to be scanned at the till in just the same way packaged goods have been for decades. This is desirable because a lot of produce looks very similar and is often misidentified. In addition, checkout operators currently have to look up or

Dr Peter Stevens, chief executive, GS1.

remember the stock code of the produce to sell it – inefficient, slow and error prone. Interestingly, my discussions in the produce sector in recent weeks have highlighted a far-reaching, and unintended, consequence of the introduction of GS1 DataBar. To explain, it is important to understand what a barcode number (technically known as a Global Trade Item Number, GTIN) actually represents. A GTIN is assigned by the brand owner to each variant of their product they put out into the market. So, if a little sticker with a barcode is going to be put on an individual apple grown and packed in Hastings, for example, it follows that the packhouse or exporter must establish who is the brand owner of the apple in the eyes of the retailer market the apple is destined for, and ergo they desirably should know where the apple is going. Here lies the issue. A surprising amount of New Zealand produce is grown, packed and shipped without the grower, packhouse or even exporter knowing where it is going, nor to whom. Pretty hard to work out how to barcode the product then. Also, for retailers to be able to scan the barcoded apple, they have to load into their IT systems the brand owner’s GTIN for the apple. Human nature will suggest that if they currently have 50 ‘suppliers’ for the same apple variety (eg a Braeburn) over a year they might be loath to key 50 different GTINs into their systems just for the one Braeburn product. It seems likely that they will seek to minimise the number of data entries by slimming down their sources of supply for any particular item. If this is right, DataBar will not be a problem where a sector is strongly concentrated into a few exporters with strong brands. But it may be very relevant at the other end of the market where small players do not have the market footprint to even be considered a brand owner. Would it not be ironic that a new barcode may force change in the industry structure of the produce sector and a move from commoditised product to branded product – in exactly the manner industry commentators from the PM downwards have been encouraging? october 2010 FMCG

: e k a u Q Christchu

rch recovery

FMCG october 2010

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last by surprise. The d rl o w e th k o to quake 00 Haitian lives. ,0 The Christchurch 0 20 r ve o d e m nitude clai . quake of this mag By Pauline Herbst ? e p co d an al e Z How did New

ts 4.00 in the morning when the baker starts his work; quiet and cold. He gets ready to warm up the empty store with the aroma of fresh baking. At 4.35 the building starts to shake. Hundreds of thousands of tins and boxes hit the floor, followed by the crashing sound of racking hitting tiled floor. The solitary baker is unharmed but left shaken and in darkness. That baker was Grant Saunders and he was the only member of New World Rolleston in the store when the 7.1 magnitude, September 4 earthquake struck Christchurch. Rolleston is right on the edge of the formerly unknown fault line and as such, one of the worst areas hit by the quake. Store owner Roy Bridgman described the early morning wakeup as a “hell of a shock and a jolt”.With no electricity and no phones (landline or mobile) Bridgman’s immediate con-

cern was for his family, then staff. “I spent 20 odd minutes trying to get hold of them. One of our apprentice bakers lives next door. He said ‘I’m going to send Michael down to check on Grant’. I said I’d go down but by the time I got back in Grant was already on the phone to my wife. The emergency lighting had come back on [instore].” With an analogue phone, Bridgman could at least receive calls. “We had whole racks of shelving fall. By the time I got to the store about half a dozen of my staff were already here. I sent everyone away to give me a chance to analyse and work out a plan for the cleanup. I didn’t have to ring one staff member and we had between 50 and 60 people working here.” By Monday the store was open for trading at normal operating hours. “We could have stayed shut for

several more days if we’d wanted to take it easy,” says Bridgman. “Our priority was to open for our customers. We’re the only store in the town and families were looking for food, they needed the basics, like bread and milk.” With the local water supply contaminated, bottled water was in high demand and Bridgman reports suppliers rallied to get product through to Christchurch. “The suppliers were really good to us and looked after us.” An aftershock of 4.5 hit the morning of this interview. But what really struck home for Bridgman was the community support. Locals rapped on the front windows until they were let in to help create order from the chaos, the Lions Club pitched in and the fire brigade stopped by to dismantle racking and help make the area safe for workers. Even the baker was there with both his daughters october 2010 FMCG

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who also work in the bakery. Sunday he was back, this time with all four children lending a hand. Bridgman says:“We’re really grateful that no one was hurt. If it had been just a little later there would have been more staff, which means more danger of being hit by falling product. We’re just overcome by the amount of generosity that everyone showed towards us. Everyone pitched in to help. It’s quite overwhelming and very humbling and a very emotional time for everyone really.” It’ll be several months before the store and its staff recover. There was significant stock loss, the ceiling was being replaced as Bridgman spoke to FMCG, and half the floor is scheduled for replacement due to damage. It’ll be longer before the region bounces back.

Disaster costs Fortunately costs from the earthquake can be measured in dollars not human life and insurance should compensate many businesses but the results are still sobering. Datamine’s Retailwatch figures show that supermarkets and food retailers in the Canterbury region represented about $98m of retail spend in August 2010. September figures were not available as this issue went to print, but will undoubtedly be lower. Sally Carey of Datamine says: “It 22

FMCG october 2010

doesn’t help that the quake struck in the early hours of the morning the day before Father’s Day, a day welcomed by retailers across all categories for its boost to business. “To give you an idea, last year Father’s Day weekend retail trading (across all categories) was over $19.5m in the Canterbury region,” says Carey. “This year it will be relatively non-existent.” An average weekday spend (based on August 2010 figures) is in the realm of $10.5m for the Canterbury region ($3.5m for the supermarket category), so that signals a potential loss for every day that retail businesses are not operational. “Obviously not every retailer in Canterbury is affected, but even with the likely proportions, the numbers are staggering,” says Carey. During Father’s Day weekend 2009, supermarkets and food retailers saw almost $7m in spend, so this is a large slice of the pie that they may stand to have lost this year. For supermarkets and service stations, the impact is likely to be less than for other retailers because they are geographically more evenly spread around the region. Stand-alone recreation and entertainment retailers are likely to be the most affected. “In August, retail spend figures for the Canterbury region looked positive, up in every category on August

2009. September is likely to paint a very different picture for Canterbury and comparisons will be able to be made from our data in the first week of October,” says Carey. What has undoubtedly helped both Foodstuffs South Island and Progressive was the way in which they dealt with the disaster. By 6pm Foodstuffs South Island had already circulated a memo to the industry from the ‘Disaster Recovery Team’. It read: “Due to the severe impact of the Christchurch earthquake on Saturday (am), our Hornby Ambient Distribution Centre will be out of action for some six to eight weeks (due to extreme racking collapse). “Fortunately our Hornby chilled and frozen and Papanui distribution centres only received minimal racking damage but will still require a further 24 to 48 hours to get back to a steady state. I list now our plans, at this stage, to service… for the range of stock that would normally have been supplied ex the Hornby Ambient distribution centre…” Steve Anderson, chief executive, Foodstuffs South Island translates that to real terms: “We lost about 65% of racking, that’s 5000 tonnes of product hitting the floor.” The company did however have a disaster recovery strategy that had been tested under fire in June due to a computer issue.

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New World Rolleston – one of the worst hit in the quake.

“This caused the crisis management team to be put in place. We tested it and then had a real go on another issue so we knew what to do. Funnily enough we were going to have a big test in two months’ time. The scenario was an alpine fault earthquake which severely impacted Christchurch and impacted the West Coast. It’s almost exactly correct other than the West Coast being affected.” He pauses. “So I’ve cancelled that.” Wry humour aside, the speed in which the team responded is impressive, especially considering they had their own homes to consider. By 5.30 Anderson received his first call, from John Mullens, gm wholesale, to report no one was hurt. By 6.30 the executive and key staff were onsite to execute the crisis management plan.The way Anderson describes it, it sounds like a scene from a gritty TV series. Everyone is assigned roles, from supplier liaison to property and everything in between. Distribution centres and stores are all marked up on a whiteboard in an attempt to get a handle on affected areas and their status. Someone pulls up earthquake tracking website GeoNet to identify the location of the quake. “We were just getting information on the impact on sites. I think there were roughly 25 affected supermarkets

plus Four Squares and three distribution centres,” says Anderson. “Dunedin was not adversely affected at all, but it was impacted as we had to ramp it up to 24/7 operation. Once we understood what issues we had then we asked, ‘How do we get back into operation getting food back out the door?’ Supplier liaison is really important there: what was the status of the suppliers, could they go direct, how quickly could we make good the damage in the distribution centres?” They started picking in a reduced capacity by Monday. People worked all day through the aftershocks and the day after and it was only by day three or four that Anderson reports another issue arose. “Everybody had been working on adrenalin, doing long hours and weren’t sleeping at night because of the aftershocks. A lot of people were getting overly tired so we had to get them away for a period of time, even half a day and that was a real challenge. Everyone was so on edge as a result of workload and aftershocks. “There were heaps of people who did a huge amount more than I expected of them. It’s very humbling, even members of the public. We had stores where you literally couldn’t see the flooring tile from the amount of product.” One of the tragedies from the quake would have to be New World

Kaiapoi, which was so badly damaged it will have to be demolished and rebuilt, leaving 34 full timers and 52 part timers without a job. “That was tough in the week following.” The company has tried to soften the blow, upping a two week entitlement to two months, giving a $500 grocery voucher to full time staff (part time $250), guaranteeing that anyone who wants a job after the two months will find one within Foodstuffs. So far with offers from the Warehouse, Farmers, and Progressive, over 20% of those staff already have employment. Even with insurance, damage costs. “The biggest challenge we’ve got is the time and effort it takes and the fact we’re spending time and effort away from core business,” says Anderson, “but every day it’s getting better and better. We had to work with a lot of suppliers quickly, about understanding our and their situations and I think the suppliers did a wonderful job. “I’m also very proud of the way the team has performed. We’re talking about a 7.1 in the Richter scale which is a relatively rare event and there have only been 10 in the last century in New Zealand. It’s remarkable how quickly we’ve bounced back but we’ve still got a fair way to improve.” An official release received two days after the quake revealed all three october 2010 FMCG

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Foodstuffs companies (Auckland, Wellington and the South Island) have committed to donating $100,000 to the people of Canterbury. It also arranged in-store donation points at its store for the public to contribute. Progressive matched that figure with a $100,000 donation to the Christchurch earthquake fund to assist with the rebuilding of the city and to support people as they attempted to re-establish their lives.

By sea, rail and truck “The way that both our business, our team, and our community responded was just terrific and I pay tribute to all of our team in Christchurch. In particular the way they responded to get food, clean water, and essential items to people was just incredible.” Competitors in business, pulling together during crisis, David Chambers, general manager, store operations, Progressive, mirrors Anderson’s sentiments. In Sydney when the quake hit, by the time he reached Auckland and head office at midday, “things were well underway in our business, led by Peter Smith, our MD.They did an absolutely fantastic job. I met with people who were getting tired but really determined to meet the public. We had eight of our 12 stores open for business on the Saturday and 24

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the other four stores were open on Sunday morning. “We had many situations where family members came in and helped with the clean-up in the stores, through to people meant to be on holiday but had cancelled to be there to help. There were people whose homes had been condemned and didn’t know what would happen to their possessions and where they were sleeping but who were working with the stores. The whole community really pulled together.” Even those who could have sat at home and still been paid were seen doing voluntary work in the community. Progressive is not commenting on the business impact, focusing instead on the impact on its people. “Our focus has been on business continuity, the public in Christchurch and the whole of the South Island,” says Chambers. “Plans are well afoot; we would expect to be fully operational in Christchurch by December.” In any disaster safety is paramount. After structural engineers had ensured the stability of its stores the next hurdle was food safety. “We have contingency plans for a wide range of occurrences, natural and manmade but the scale of this was somewhat different. The principles we had really worked well and were evidenced by the eight stores

that were open on the Sunday once the proper structural and safety checks were done. “We got information to our stores to explain how to treat water in case it was contaminated. You couldn’t use bore water to make product like bread and clean down equipment in, for example, the delicatessen. In some stores we didn’t operate those departments.” The company also used a lot of principles it “wouldn’t normally use”, ensuring product got to stores if necessary by sea, rail or truck. When extending a supply chain to that length, delays are inevitable, even with a plan in place. “It’s not just us, Foodstuffs also did a great job,” says Chambers. “You need trucking fleets to get from the North Island to the South Island. It’s not just your business but quite a bit of infrastructure to gear up.” But gear it up they have, in addition to counselling for staff and generous trading hours for customers. “It is difficult and you really don’t know how you’re going to respond until something happens. It’s quite traumatic for some people,” says Chambers. And clearly a test of character. If courage is honed under pressure then the residents of Christchurch have certainly demonstrated their mettle.

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Major changes coming for liquor laws Concerns smaller stores could be affected. By Trina snow

The National-led Government has announced a major set of reforms relating to the sale of alcohol in New Zealand. Earlier in the year, the Law Commission studied the issue and made 153 recommendations in a hefty report which weighed almost two and a half kilograms. Recently, the Government announced its intention to pass a package of changes which would implement (in full or in part) 126 of those 153 recommendations as well as making other changes. Announcing the package, the Government stated the intended aims were to minimise alcohol-related harm (including crime, disorder, and public health problems) and to zero in on where harm is actually occurring – particularly around youth.The main changes proposed are: • Giving local communities the power to decide how many alcohol outlets there are in their community, where they are and what time they are open. This will make it easier for residents to object to new stores and bars. • Setting maximum hours of 7am–11pm for off-licences and 8am-4pm for on-licences. This will impact on 24hour stores, requiring them to shut the liquor section for eight hours a day. • Introducing a graduated alcohol purchasing age of 18 for on-licences and 20 for off-licences.This will however be the subject of a ‘conscience vote’ in Parliament. There is strong lobbying on both sides but a split purchase age is the most likely result. If it passes, people will have to be 20 to buy alcohol in a supermarket, but only 18 to purchase it in a bar. • Giving parents more tools to manage their children’s access to alcohol and requiring more parental and individual responsibility for supply to minors. • Limiting RTDs to containers holding no more than 1.5 standard drinks. Although this will not affect supermarkets, this was an unexpected change which created considerable controversy.

Trina Snow, executive director, NARGON.

• Allowing the Justice Minister in consultation with the Health Minister to ban alcohol products which are particularly dangerous or appealing to minors. • Strengthening the law on the types of stores eligible for an off-licence to ensure dairies and convenience stores are not eligible. Nargon is deeply disappointed with this approach. • Investigating a minimum pricing regime by asking industry to voluntarily provide sales and price data within a year.This Government, like many overseas, is interested in setting a minimum price for a unit of alcohol to eliminate ‘super-cheap’ drinks. • Increasing penalties for a range of licence breaches, including selling to a minor and serving an intoxicated person.This is a welcome strengthening of current laws. • Improving public education and treatment services for people with dependency issues. Nargon is supportive of this approach. • Requiring Parliament to lead by example by removing its licensing exemption. It is a little known fact that Parliament itself has never been subject to the Sale of Liquor Act. If the package is passed, only Police bars will continue to be exempt though this proposal has created fierce public debate. The Government rejected the recommendations suggesting a 50% increase in excise tax, a total ban on liquor advertising and a compulsory ‘one-way’ policy from bars after 2am. In the circumstances, the package is relatively balanced. However Nargon continues to have concerns about the changes to licences for smaller stores and the complexity of a split purchase age.We would prefer it remained at 18 across the board.

october 2010 FMCG

What’s Hot

Suppliers can now talk directly to key consumer markets by using the New World Direct online campaign planner. The newworlddirect.co.nz interactive portal makes it easy to plan precisely targeted marketing campaigns via post or email to selected audiences. Data from Fly Buys drives the campaigns, using research from New Zealand’s largest consumer retail database which has a reach into more than 70 per cent of the nation’s households. New World Direct campaigns have already achieved a 10 per cent average consumer response rate compared to the three per cent average industry standard. New World Direct provides a centralised campaign management service through Foodstuffs Wellington.

Happy Bee Honey Free Bee Fridge Magnets Happy Bee Honey are relaunching the Free Bee Fridge Magnet promotion with the Happy Bee 500g White Clover Honey and Happy Bee 500g Clover Blend Honey packs. This is a family of 5 fridge magnets to collect in the range. The Happy Bee Honey Free Bee Fridge Magnet promotion was very successful when it was last run. So Bee in quick and stock up now.

What’s Hot

For more information on Happy Bee Honey products please contact: Orini Honey Packers Ltd Tel: (07) 824 4700, Fax (07) 824 4754 Email: orini.honey@xtra.co.nz

New! ECLIPSE® Mints Blackcurrant

Adding some Zing to Gum

ECLIPSE® Mints is introducing a new flavour to the range – Blackcurrant. Blackcurrant ECLIPSE Mints offer the consumer a sweeter alternative to the core range, while still delivering sugar-free cooling, packaged in a stylish tin.

A New 5® Gum flavour is set to stimulate the senses – and the category. Called Zing, the exciting new addition to the range has a sour to sweet bubble-gum flavour. Like its best-in-class flavour companions – Cobalt, Tempest, Electro and Pulse – Zing delivers sugar-free, long-lasting flavour.

Innovation and flavour rotation in the fruit flavour segment continue to be key to maintaining consumer interest in the Mints category.

Distinctive and eye-catching, 5 Gum is designed to appeal to all of the five senses, delivering a powerful sensation that you can feel as you chew. Each sleek black pack boasts striking graphics and contains 12 sticks of intensely flavoured gum which are wrapped in colourful foil to match the pack.

For further information call 0800 650 075.

FMCG october 2010

What’s Hot NEW Innovation in Facial Cleansing

Pure Active’s ExfoBrusher! Daily cleansing just got easier with this great new brush and cleanser in one from Garnier. The 1st anti-imperfections exfoliating brusher. Revolutionary Cleansing Brush Head: • 170 extra gentle and ultra flexible micro-bristles to cleanse deeply while still being gentle on the skin. • Easy grip packaging. • ON/OFF waterproof system.

Simple to use: i. Twist cap ON/OFF for no mess usage ii. Squeeze the pack to control the amount you use iii. Easy grip packaging iv. Easy-dry cap Proven Effectiveness: i. More exfoliating effectiveness than when the same gel is applied by hand.** ii. Concentrated with 2% Salicylic Acid to unclog pores and reduce excess sebum. iii. Natural regenerating HerbaRepair to visibly reduce acne marks.

With its all in one pack, this product is great for in the shower – and with its unique micro-bristle applicator getting a thorough deep cleanse is easy!

**Exfoliation measurement on 44 subjects.

(over 5 months, with ongoing support in 2011) *Ratecard spend media

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Campaign Spend: $550k* RRP: $13.79. Available now! november

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october 2010 FMCG

cate go r y c h e c k

Healthy summer

skin

Once the heat is up people expose more skin, encouraging them to spend more time and money on getting it healthy and looking good.

THE BREAKDOWN Current MAT to 12 Sept 2010 Total defined facial: $66,110m. Value % Chg vs YA 2.7 Facial cleansing: $23,281m. Value % Chg vs YA 0.6 Facial moisturizing: $28,583m. Value % Chg vs YA 2.6 Skin medications: $5,342m. Value % Chg vs YA -7.3 Male grooming: $4,675m. Value % Chg vs YA 24.8 Facial toner: $1,121m. Value % Chg vs YA -5.9 Facial serums & eye creams: $2,991m. Value % Chg vs YA 19.4 Facial other types: $87,838 Value % Chg vs YA -44.9 Treatment: $27,780 Value % Chg vs YA no info * ACNielsen New Zealand ScanTrack (Databank)

FMCG october 2010

FRESH FROM THE PHARMACY In summer months consumers want to be able to spend their time outdoors not shopping so they want their supermarkets to be convenient onestop shops. Medicated skincare range Alpha Keri is a new addition. Formerly pharmacy-only, Ebos Healthcare’s brand (along with other medicated skincare products) is specifically formulated to help users with severe dry skin conditions which cannot be managed, and may be irritated by other body washes and moisturisers.

Alpha Keri has a pure lanolin-based formula that is dermatologically tested, hypoallergenic and PH balanced. Abbie Malakai, brand manager, Ebos Healthcare says: “Our pure lanolin penetrates deep into the skin, providing long lasting hydration. Our three-step regime of wash, oil and lotion to treat eczema and severe dry skin is clinically proven to reduce skin dryness by up to 75% in just two weeks. “Skin conditions amongst all members of the family are prevalent, and particularly over the spring and summer months. Our desire is to ensure that medicated skincare products are readily available to all those who suffer from dry skin conditions as these can be serious and debilitating for many.” Another skin condition consumers dislike is warts. Wartner is New Zealand’s leading home wart treatment (Aztec). As Kate Park, marketing manager, Arrow Pharmaceuticals says: “Coming into summer we see sales for wart treatments increase. This is partly due to two reasons: firstly, people tend to cover up their skin over winter, but

THE BREAKDOWN Current MAT to 18 July 2010 Total eggs: $142,519m Value % Chg vs YA 3.1 Total frozen poultry: $110,149m Value % Chg vs YA 1.7 * ACNielsen New Zealand ScanTrack (Databank)

as they start to show more skin going into summer they are more likely to finally get around to treating that wart they may have been ignoring. â&#x20AC;&#x153;Secondly, warts are highly contagious, and while some people are more susceptible than others, over summer when we are exposing more skin we are more likely to catch warts.Wartner is very easy to use and comes as a range of treatments: Wartner, Wartner Plantar (for those stubborn warts on the sole of the foot), and Wartner For Kids.â&#x20AC;? Problem skin is most inconvenient in summer so products like Garnierâ&#x20AC;&#x2122;s Pure Active ExfoBrusher, aimed at teenagers, should do well. ExfoBrusher is a new product specifically designed for problem skin, featuring a new solution and an anti-blemish exfoliating brusher. The product contains 170 extra-gentle and ultra-flexible micro-bristles that work to eliminate skin problems at the source. The formula is enriched with 2% salicylic acid to help unclog pores and reduce excess sebum, as well as regenerating HerbaRepair to replen0HGLFLQHV KDYH EHQHÂżWV DQG VRPH PD\ KDYH ULVNV $OZD\V UHDG WKH ODEHO DQG XVH DV GLUHFWHG $OSKD .HUL %DWK 2LO FRQWDLQV 'H ZD[HG RLO VROXEOH IUDFWLRQ RI ODQROLQ PLQHUDO RLO $OSKD .HUL /RWLRQ FRQWDLQV 'H ZD[HG RLO VROXEOH IUDFWLRQ RI ODQROLQ 0LQHUDO 2LO )RU WKH WUHDWPHQW RI GU\ VNLQ (ERV +HDOWKFDUH $XFNODQG

cate go r y c h e c k

Healthy summer

skin

ish the skin and reduce acne marks. It also features easy-to-use ergonomic packaging.

A BIT OF PARIS THIS SUMMER L’Oréal New Zealand accounts for 13.9% of the facial skincare sales and has grown by +32% (+$2.2m) in the last year (Aztec Facial Skincare Total Key Accounts MAT to 15/08/10), significantly faster than the category at +2.6% (+$1.6m). A key driver of the growth has been expanding the availability of the L’Oréal Paris brand through the grocery channel (now the fifth biggest selling skincare brand in grocery). This includes the successful Revitalift brand, currently the world’s No 1 selling anti-wrinkle cream at +92.4 %$ YTD. Revitalift offers Pro-Retinol and elastin for women 40 years plus. “Our Age Perfect and Age Reperfect ranges offer soya and procalcium to fight skin fragility and slackening, both top performers for the mature moisturising market. Our daily moisturiser UV Perfect SPF50 with Advanced UV filters is the highest SPF daily moisturiser available in grocery,” says group product manager skincare, Katherine Hopkins. 30

FMCG october 2010

Innovation has also been a key driver of growth, focused on trading consumers up to more premium products, expanding their regime, and also tapping into the growing male skincare market with the Men Expert brand. In April 2010 L’Oréal Paris launched Youth Code, an addition to its range of anti-aging moisturisers targeted at women in their 30s showing the first signs of aging. The day cream became the No 1 selling moisturiser in New Zealand at launch (Aztec Defined Facial Skincare Combined National Pharmacy + Total Key Accounts 4 Weeks 23/05/10) and continues to rank amongst the top selling grocery moisturisers in New Zealand. Women’s skincare range L’Oréal Paris Dermo Expertise is the fastest growing female top 10 skincare brand with +62.5% Value YTD in grocery in an otherwise flat category at -0.1% (Aztec Female Skincare Market Total Supermarkets YTD 15/08/10). L’Oréal’s green brand Garnier Skin Naturals has also contributed to category growth up 12% on last year (Aztec Facial Skincare Total Key Accounts MAT to 15/08/10), with much of that growth coming from the launch of Pure Active in October 2009, a range of medicated skincare

products for teens, which has added $448,000 to the category since launch. In October 2010 Garnier will be extending this range with the Pure Active ExfoBrusher which has seen record shares in Europe since it launched (Nielsen Europe Panels Toilettes value to 3/04/10). At the same time Garnier has also launched two new Tinted Eye RollOn products, an extension to the Caffeine Eye Roll-On concept. The Caffeine Eye Roll-On continues to be the No 1 selling eye moisturiser in New Zealand. “With a strong portfolio of brands and reputation for innovation we expect L’Oréal to continue to drive category growth over the coming years,” says Scott McBeath, category manager.

FOR THE MEN L’Oréal Paris Men Expert range, the No 1 men’s brand in over 19 countries is equally successful in grocery at +19.8% YTD (Aztec Male Skincare Total Supermarkets YTD 15/08/10). “It includes Hydra Energetic with Vitamin C to combat tired skin for men 20 years plus, Vitalift with ProRetinol to fight wrinkles for men 40 years + and a sensitive range for all

ski ncare

ages, Hydra Sensitive. This year’s innovative Hydra Energetic Ice Cool Eye Roll-on launch rocketed up the grocery ranks to a top 10 ranking in men’s skincare,” says McBeath. With eight billion-dollar brands and products available in nearly 130 countries, Procter & Gamble’s beauty and grooming portfolio delivered over US$27 billion of sales in fiscal year 2009/10, making it one of the world’s largest beauty and grooming companies. One of its brands, Gillette, has the Series Skincare range that includes products designed for sensitive skin. The company commissioned the Gillette Sensitive Survey which showed that Kiwi men often felt self-conscious about their looks and took steps such as purchasing multiple skincare products to improve them. More than two thirds (69%) of men surveyed said they used one or two products as part of their daily skincare and shaving routine. Some men took even greater care with their appearance just over a quarter (26%) admitting they use three or more shaving or skincare products daily. More than four out of 10 (42%) male respondents felt embarrassed because of a rash or irritated skin.

The research also showed that younger men were more likely to admit to feeling self-conscious about sensitive or irritated skin. This was illustrated by the fact that more than half (51%) of men aged 15-24 admitted to the problem, but the figure decreased to just over a quarter (28%) for men aged 65 and over. It seems the older generation of dads were less likely to use products to ease skin sensitivity caused by shaving. Two in five men use skin products regularly, however men aged between 25 and 34 were twice as likely to utilise products compared to men aged 65 and over. New Zealand dermatologist Dr Mark Gray says sensitive skin is a common problem for Kiwi men but that in many cases flare ups are preventable. “More male patients are proactively seeking advice on how to treat their skin during the shaving process and which products are best to address their skin issues,” he says.

AGE DEFYING P&G’s other skincare brand is Olay, the world’s number one facial care brand (Euromonitor data: 2006-2009). Its brand offering includes the Regenerist, Total Effects and Complete lines.

“Olay has had a number of successful product launches in the last 12 months, including the new and improved Olay Regenerist range and the launch of Olay Regenerist Micro-Sculpting Cream, which was a local and worldwide hit. More than 1400 units of the MicroSculpting Cream were sold in its first week in New Zealand, and as a result we will soon be launching the Micro-Sculpting Serum. This serum complements the cream, and is the most powerful product in the Olay Regenerist range to date,” says P&G Australia & New Zealand public relations manager Jolie Egan. The serum is infused with the highest concentration of Regenerist’s signature amino-peptide complex. It’s the most powerful in the Olay Regenerist range to date and targets the three hardest to treat areas – the eye area, jaw line and neck. “We are also excited to be launching the Olay Definity range in October. The products have proven to be a huge hit internationally and are now finally available in New Zealand. The products are designed to help go beyond wrinkles to also improve the appearance of dull, uneven and discoloured skin tone,” says Egan. october 2010 FMCG

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Source: * Aztec Key Accounts MAT 15.08.2010 ** Aztec Key Accounts 25.04.2010

cate go r y c h e c k

Chilling out

Ice cream is a popular post-BBQ fare. It’s quick to serve, easy to share and tastes good as an accompaniment to fruit and other dessert.

PREMIUM POPULAR Just as we’ve seen with chocolate, ice cream is all about premium, with premium take-home ice cream the fastest growing segment in the market over the past 10 years. Premium Ice Cream is currently experiencing 1.1% growth (Aztec MAT vs previous 12 months). Data shows that this is largely being driven by the re-categorisation of standard two-litre products, with the 500ml to one litre market showing a decline of 3.2% MAT. There have been significant changes to the premium category this year with prominent brands exiting the market, smaller players entering and established brands such as New Zealand’s 34

FMCG october 2010

No 1, Killinchy Gold, showing impressive growth. Including Killinchy Gold, Emerald Foods manufactures six of the successful premium ice cream brands in the New Zealand market: Mövenpick, New Zealand Natural, Zilch, Lite Licks and Heavenly Treats. The company has been busy this year on the awards front winning the New Zealand Trade and Enterprise award for 2009 (Best Business Operating Internationally Between $10-$50m); the Ernst &Young NZ Entrepreneur of the Year title (awarded to owner Diane Foreman); two world-first global new product launches; two Guinness World Records; a gold medal at Sial D’Or for New Zealand Natural Ice Cream

Sooshi; 25 medals at the New Zealand Ice Cream Manufacturers Awards (including the only gold medals for premium ice cream in the category for Mövenpick Maple Walnut and Swiss Chocolate) and two supplier of the year awards. Emerald’s award-winning development team has been developing an array of new flavours including Boysenberry Cheesecake. Only recently available, it is set to become one of the most popular flavours in the iconic Killinchy Gold range. Limited Edition flavours of Raspberry and Strawberry Sorbet and Passion Mango Sorbet will further enhance the super premium Mövenpick range during the summer season.

i ce cream THE BREAKDOWN Current MAT to 12 Sept 2010 Total ice cream: $152,080m. Value % Chg vs YA 1.6 Take home standard: $70,668m. Value % Chg vs YA 2.4 Family packs: $55,445m. Value % Chg vs YA 2.0 Take home premium: $20,097m. Value % Chg vs YA -3.0 Novelty/singles: $5,869m. Value % Chg vs YA 4.7 * ACNielsen New Zealand ScanTrack (Databank)

NATURAL AND ORGANIC GAINING GROUND Three-year-old Auckland-based Kohu Road has just launched a range of four sorbets: Mango, Passionfruit, Chocolate and Strawberry. Ice cream maker and founder Greg Hall says: â&#x20AC;&#x153;So far the pick up has been exceptional and sales are way above our projections. Kohu Road sorbets have an amazing new ice cream-like texture that consumers love, very different to traditional, hard, icy, coarse sorbets of the past.â&#x20AC;? Research conducted by the company reveals that consumers are moving towards clean, natural additive-free products, and are more willing to pay a higher price for a quality product. This goes hand in hand with an

increase in discovering food allergies. As a result, Kohu Road sorbets are all gluten free, dairy free, GE free, vegetarian and kosher. Some are also fat free and vegan. Data from the University of Otago New Zealand Organic Sector Report 2010 shows that the New Zealand market for organic food and beverage products was valued at $315m in 2009, an increase from $210m in 2007. Compared to 2007, a greater proportion of organic sales are sourced locally (growing from 8% to 17%) and domestically (rising from 50% to 65%). Nine percent of Americans consume organic products every day. Following the all-natural trend, local family business oob (Omaha Organic

Berries) manufactures certified organic Blueberry Sorbet and Blueberry Ice Cream grown on its farm, an extension from the original core business of fresh and frozen organic blueberries. The success of these two products led to an extended range of organic ice cream flavours being developed. The range of 850ml ice creams and sorbet is now sold throughout supermarkets and specialty stores nationwide. The range consists of the popular Blueberry Ice Cream and Sorbet, Chocolate, Strawberry, Licorice, Vanilla Chip and Vanilla Ice Creams. A range of 125ml (single serve) tubs is also available in these flavours, and is a great seller through the summer months. In addition to these 850ml flavours, october 2010 FMCG

cate go r y c h e c k

Chilling out

oob offers a range of five-litre catering tubs with an extensive range of flavours developed for ice creameries nationwide and its ice cream café ‘Blue’ in Matakana. An official supporter of The New Zealand Breast Cancer Foundation, oob donates 10c of every purchase of Blueberry Ice Cream, Blueberry Sorbet or packet of its Organic Frozen Blueberries to the foundation. The past 12 months has also seen premium ice cream brand Kapiti Ice Cream growing ahead of the premium take home market at +13% vs market growth of +0.9% (Aztec MAT to 9/5/10). The brand was re-launched in October 2009 with a complete brand update and an extension into multipack and novelty categories. The launch of Kapiti into the multipack market is the first super 36

FMCG october 2010

premium brand into the category and in September the multipack range was extended with the launch of the popular Kapiti flavour White Chocolate and Raspberry into a stick format.

MODERATION GOOD FOR YOU Last year Tip Top introduced a new range of products into the moderation segment, Tip Top Yoghurt Ice Cream, billed as product that is ‘better for you’ by being 97% fat free. To date this range has brought $2.6m in sales into the moderation segment with the award-winning Strawberry Yoghurt sitting at the No 1 ranked product in the segment. The launch of a new Passionfruit variant this summer will continue to drive the momentum. Summer of 2010 sees Tip Top

strengthening the two-litre range with some new launches, Coconut and Chocolate Ripple, Strawberries and Cream, Lime Swirl and Saucy Caramel. The Tip Top brand also continues to see growth in the multipack category (+1.6%) as consumers reach for the convenience of multipack products. The Trumpet brand has had a very strong year with growth of +22.7% driven by a strong NPD development programme including the partnership of Trumpet with M&M’s to bring New Zealand’s strongest confectionery brand to the freezer. The launch of Memphis Meltdown Rocky Road into the Indulgence segment in May (as reported in C-Store) delivered the first marshmallow enrobed ice cream on a stick in the world. Memphis Meltdown has delivered +8.1% value growth on year ago.

i ce cream

Tip Top is also updating all brand livery this summer including key convenience stores, Tip Top Contractor truck fleet and freezer signage. All aspects of the brand refresh will come to life for consumers in a significant ATL communications campaign of more than $3 million. There is increasing demand for Tip Top novelty products in the key account channel. Novelties offer a high value consumer solution and the opportunity to increase the basket size with an incremental ice cream purchase at the end of the shop.The novelty segment is currently growing in value at +5.5%. Ask any kid and they’ll tell you ice cream can always be enhanced with toppings, the brighter the better, which is a perfect opportunity for add-on sales. Hansells Food Group recently

launched a new range of ice cream toppings under the Aunt Betty’s brand. The new toppings include: Temptation Sensation (dark chocolate), Jelly Jiggle (raspberry jelly) and Slimey Limey that acts just like slime. Hansells senior brand manager Susan Harvey says the launch of the toppings fills a gap in the fast-growing dessert toppings segment. It is currently the second largest segment in the shelfstable dessert category and one of the fastest growing segments within that category, with 6% growth (Aztec MAT to 5/9/10). “While kids will love the texture, great flavours and colours of the new toppings, parents will like the low fat content,” says Harvey. “Both Jelly Jiggle and Slimey Limey are 100 percent fat free, made with real juice and have no artificial flavours.

Temptation Sensation has only 1.5g of fat per serving and has 85 percent less fat than hard-set chocolate toppings. It also has no artificial colours or flavours and no palm oil.” Hansells also recently unveiled a fun new range of flavoured sprinkles in two flavours: Pinkalicious (strawberry) and Orangatangi (orange sherbet). Harvey says:“Kids love the flavoured sparkly sprinkles as well as the fun names, while parents like the fact that they contain no artificial colours or flavours. Hansells sprinkles will add sparkle to your favourite ice cream and magically transform your cupcakes, muffins and cakes.” The simplicity of ice cream, coupled with renewed consumer interest in premium and variety should see solid results for this category over summer. october 2010 FMCG

Photo : Telegraph Hill

More than an

acquired taste Olives have moved on from biblical references and peace metaphors. As this year’s inaugural New Zealand Olive Festival 2010 showed, olives have revved up their history to become the modern culinary butterfly – seen in all the dishes, all the social settings and even approved of by nutritionists. By Pauline Herbst.

sk Geoff Crawford, director, marketing and sales at Telegraph Hill’s olive farm how the festival went and he says: “The weather could have been a little bit better.” Indeed. Gale force winds hit Hawke’s Bay over the weekend of September 18, but this didn’t seem to stop 1400 eager visitors from swarming Sileni Estate for the NZ Olive Festival. The past two years have seen a local Hawke’s Bay Olive Festival successfully run at Telegraph Hill but this year the decision was made to “grow the festival and open our arms out to other businesses from out of town that wanted to take part”. A committee, which included

FMCG october 2010

Crawford, took over the organisation, linking it into the two-week Hastings Blossom Festival as part of the final weekend’s gourmet event called Epicurious. Stallholders and visitors attended from far and wide, with hobbyist oil press manufacturer Axis Industrial coming from Auckland and Lusatori olives and oil coming through from Marlborough. This year a small charge of $5 gained entry and all the olives you could eat from top suppliers interested in plying hungry mouths with product. Highlights included Wellingtonianbased celebrity chef Rex Morgan from Boulcott Street Bistro. His demonstrations were like an olive oil appreciation

class with olive oil ice-cream atop an olive oil chocolate cake drizzled with citrus-infused oil. Morgan says, “Olive oil is an essential ingredient in cooking, I use it all the time, the flavours are as complex as wine and should be used accordingly, it is a really versatile ingredient that can be used in many ways.” A lot of people wanted olive powder following Morgan’s salmon dish made with olive powder – talk about the power of suggestion. Arnault Vallee from Orton Catering also had some great tricks, showing visitors how to use olive oil in everyday cooking. A much talked about feature of this year’s festival was the Chefs’ Table with Dish Magazine. Hosted

featu re Olive Oil Ice Cream If you’d like to recreate the recent Olive Festival experience, whip out the olive oil and get cooking.

Photo: Telegraph Hill

Ingredients: • 3 cups milk • 1 cup heavy cream • 6 egg yolks • 1 cup sugar • 2/3 cup extra-virgin olive oil

by editor Victoria Wells, eager people queued up to sit down with the chefs to ask them about their careers, tips in the kitchen and future plans. Jeremy Rameka from Pacifica, Terry Lowe from Black Barn Bistro, Paolo Pancotti from Milk & Honey and Rex Morgan were all available. With olive oil appreciation workshops, olive tastings, food, wine, a bouncy castle for the children, a spit the pit competition and entertainment, the Olive Festival was sure to have at least a few converts.

Exhibitors at the Olive Festival included: Aquiferra, Matapiro Olives, The Village Press, Telegraph Hill, Elllsgrove Olives & Nuts, Esk Valley Olives, Lusatori Olives, Shiloh Horticulture, Olives NZ, St Andrews Limes, Dish Magazine, Damson Collection, Chopmate, Food on the Move, Pizza Guy, Hawthorne Coffee, Aurum Coffee, Axis Industrial, Coastal Squeeze, Te Mata Cheese and Olives X nZ.

ONLINE: More recipes from chef Rex Morgan of Boulcott Street Bistro and Arnault Vallee, head chef at Orton Catering @ Sileni Estates can be found on www.fmcg.co.nz.

Directions: In a saucepan over medium heat, whisk together the milk and cream. Cook until bubbles form around the edges of the pan. Meanwhile, in the bowl of an electric mixer fitted with the whisk attachment, beat the egg yolks and sugar on mediumhigh speed until thick and tripled in volume, about five minutes. Reduce the speed to medium-low, slowly drizzle in the olive oil and beat until combined, stopping the mixer occasionally to scrape down the sides of the bowl. Slowly add 2 cups of the hot milk mixture, 1/4 cup at a time, beating until just combined. Slowly pour the yolk mixture back into the saucepan, whisking with a handheld whisk until combined. Place the pan over medium-low heat and cook, whisking constantly, until the mixture coats the back of a spoon and a candy thermometer registers 175°F, about 15 minutes. Strain the custard through a fine-mesh sieve into a bowl. Place the bowl in a larger one partially filled with ice water and cool the custard to room temperature, stirring occasionally. Cover with plastic wrap and refrigerate until cold, about two hours. Transfer the custard to an ice cream maker and freeze according to the manufacturer’s instructions. Transfer the gelato to a chilled container, cover and freeze until firm, at least three hours or up to three days, before serving. Serve with strawberries and balsamic syrup.

october 2010 FMCG

cate go r y c h e c k

Dipping

into summer Now that daylight saving is here, entertaining is back on the agenda. Long evenings with friends are the perfect excuse for drinks and you can’t go wrong with crackers and the extensive array of dips, pates and hummus on the market.

DIPS

THE BREAKDOWN Current MAT to 12 Sept 2010 Total dips & pate: $54,618m. Value % Chg vs YA -4.6 Hummus: $19,993m. Value % Chg vs YA 0.3 Other dips: $15,072m. Value % Chg vs YA -8.7 Pesto/chunky dips: $12,069m. Value % Chg vs YA -9.4 Pate: $7,439m. Value % Chg vs YA -0.8 Tapas: $45,000 Value % Chg vs YA no info * ACNielsen New Zealand ScanTrack (Databank)

FMCG october 2010

La Bonne Cuisine is the market leader, holding 41% of the Total Prepared Dips Category (AC Nielsen, MAT to 12/09/10 vsYA) with its Mediterranean, The Good Taste Co/La Bonne Cuisine and Just Hummus brands. Janine de Vryer, marketing manager says: “Our Mediterranean Basil Pesto Chunky Dip is still the number one selling dip and we have seven products in the top 10 selling products.” The company has just completed a change from La Bonne Cuisine to The Good Taste Co and marked the occasion with new packaging, new dip flavours and a new range of dips under the Mediterranean range. It has also launched The Good Taste Co Hummus and Crackers, a convenient, single-serve snack sold in multipacks of four, so handy for

cate go r y c h e c k

Dipping

into summer snacking at work or school. Another company that is introducing new ideas is LHF. It’s developed a range of cheese-based dips to complement its existing spinach and feta product and is introducing a new Feta and Caramelised Onion variant. “The original brand, Lisa’s has been dominant in the dips category for approximately 20 years,” says Bennie Hendricks, GM, LHF. “Whilst the business has always been about ‘good food’ it has always also been about food with integrity.” Today the shelves teem with flavour variations of Lisa’s hummus. Lisa’s took a significant step forward by introducing a new range called Lisa’s Toppings, which involves a high technology process that produces an infinitely smooth hummus and adds a significant dollop of interesting flavour profiles on the top. The Toppings’ range has, since its recent launch at the end of summer 2010, gained in excess of 4% of the market and Lisa’s is creating four more toppings’ products for the upcoming summer.More recently the company has acquired the Kato and Food by Chefs brands and given a significant new lease of life to Olive Grove, now dominant in developing the falafel category. The eating patterns of today’s lifestyle demand more and more products for immediate use, and in response, Nelson Naturally produces a range of Antipasto ready-to-eat dips that are shelf stable, meaning they do not need to be refrigerated. The dips are presented in wide-necked, shallow jars so they can be eaten straight out of the jars while the flavours: Lemon & Feta; Chilli Lime & Coriander; Sesame & Cumin Butter; Red Wine Relish; Gazpacho Dip; Feta 42

FMCG october 2010

& Olive all respond to a growing desire for slightly more exotic tastes. A more travelled consumer palate has led to the introduction of dry dips like dukkah. Unknown 15 years ago, today more is consumed per head of population in Australasia than anywhere outside the Middle East. Nelson Natural’s Adventure Kitchen Dukkah lets guests dip a piece of dense bread in a good olive oil, then dredge it through the dukkah and eat it. It can also be used as a trim over hummus and other dips or mixed with sour cream or cream cheese as a dip or spread, sprinkled over salads or blended with breadcrumbs as a fry-coating. Instead of the usual offerings of Spicy or Mild Dukkah, the company blends combinations reflecting different countries of the Mediterranean region: Lebanon, Morocco, Persia (Iran), Tunisia, Egypt. All have their own version of dukkah, spiced and blended according to the local cuisine. It even makes a New Zealand version: a crunchy blend of sunflower seeds, pumpkin kernels, sesame seeds and almonds, spiced and roasted.

PESTO From one type of Mediterranean dish to another, Basil Pesto supplier Genoese reports the Pesto Dip category is relatively static growthwise. “However we have been able to achieve significant growth via market share. In the three months to the end of August 2010 Genoese pesto sales are up on average 48% on the same period last year so it is likely Genoese’s market share has grown,” says Andrew Parkin, CEO, Genoese Foods. The Genoese range consists of three sizes under the ‘ground pesto’ brand.

di ps, hummus, pates

The Chunky Pesto Dip range was launched in June with five varieties. Growth has led to a brand extension, a new Olive and Sundried Tomato Chunky Dip 135g to be launched in October, full of crunchy cashews. Essential Cuisine is another New Zealand company making traditional pesto from New Zealand grown herbs, natural parmesan cheese and roasted almonds. The range includes traditional Basil, Sundried Tomato, Asian Green with Coriander & Mild Chilli, Roasted Red Pepper and Olive. The Olive is a traditional tapenade made with black olives, basil, almonds, anchovies, capers and parmesan cheese. Recently all five Essential Cuisine pestos were awarded two stars at the International Taste Quality Institute Awards (iTQi) in Belgium. The iTQi is the leading independent chef- and sommelier- based organisation dedicated to judging and promoting superior tasting food and drink. The iTQi jury is comprised of 120 chefs and drinks experts from 12 of the most famous European culinary associations. Jeanie Kay, brand manager says: “The Essential Cuisine pestos stand out from the competition on shelf as they come in a unique, screw-top, stand up squeeze pack. This is made from a flexible barrier that minimises oxidation and bacte-

rial spoiling, meaning your pesto can be opened and left in the fridge for longer.”

PÂTÉ Pâté is where La Bonne Cuisine started and the company continues to hold the market leadership position as a manufacturer with 64.6% value share (Total Pâté Category AC Nielsen MAT to 12/9/10 vs YA). They also have the top three brands with Gourmet as the market leader, Breton number two and Master Chef number three. Master Chef Pâté has just undergone a refresh in packaging.“With all of this activity and the support that is about to commence we are preparing to have a strong summer and drive sales in the Pâté and Dip Categories,” says Janine de Vryer, marketing manager. Lowry Peaks Traditional Fruits, from North Canterbury, specialises in growing old fashioned fruit; and creating traditional and unusual gourmet sauces, condiments and superior fruit pâtés. The pâté range consists of Golden Quince, Damson and Plum, and Cranberry Superior Fruit Pâté, all of which are stocked in the cheese deli section of selected supermarkets and are recognisable by rustic, hand-drawn labelling. Indicated on the packaging are recommended matches with cheeses and meats, allowing the consumer to

make a quick, informed decision. The proprietors are the largest growers of sun-ripened quinces, damson plums, and now Medlars, in New Zealand.“Our fruit is hand-picked and spray-free.We ensure the highest quality by reducing our fruit to one third its original weight by vacuum steam cooking.This retains an intense colour and fresh, robust flavour for which we are renowned.” says Hugo Davison, general manager. The most recent addition to the fruit pâté range is Cranberry. It has proved to be successful particularly during the summer months and festive season, as a traditional accompaniment to turkey. “The beauty of these products lies in their versatility. With the pâté consistency they are perfect to cut for a cheeseboard; they can also be melted down for a sauce base to complement sweet or savoury dishes.” says Davison. Product development is underway for a fourth fruit pâté, to include the home-grown Medlars. Sales spike tenfold from November to February owing to the increase in social functions and gift-baskets continuing to be a popular choice for Christmas. Summer is busiest for Lowry Peaks with products geared towards entertainers that don’t want to spend hours in the kitchen. Expect similar results from the rest of the Dips category. october 2010 FMCG

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Shelf wars: may the field force be with you Chris Gourvelos from Lawson Software presents business tools to monitor expiry dates and Star Wars. In the highly competitive retail world where companies sell a range of consumer foods, beverages and packaged goods, success comes from an organisation’s lightsabre-like focus, as well as its ability to adjust to the sales and margin performance of products. To accomplish this, retailers are increasingly reliant on technology-wielding members of the field force. To stay ahead of the competition, suppliers to major retailers need to obtain an improved understanding of the market in which they sell, ensuring that all activities, forecasts and plans taking place within the complete commercial cycle are monitored. This might seem simple enough, but in reality the process is complicated and fastmoving. Achieving consistently positive results is dependent on the effectiveness of the mobile sales team and the merchandiser’s Yoda-like powers of concentration and coordination. These are needed to ensure products are protected from falling to the dark side of the shelf where ultimate destruction looms as the countdown to the expiry date draws closer. Key issues that every supplier faces when jostling for the best position on a retailer’s shelf include whether their products are going to sell and meet the retailers’ expectations – particularly if they are newly launched products. Keeping an eye on the competition while at the same time assessing the effectiveness of campaigns for both new and existing products is crucial. Suppliers also need to continually find ways to measure the success or failure of these campaigns, and be able to adjust accordingly to what their research is showing. The problem for many suppliers is that they lack sufficient detail about what’s going on at the retail level. While many retailers can provide suppliers with basic information such as scan data, this is merely a record of which products have gone through the cash register. For the supplier to maximise both volume and margins, they need to know much more. Specifically, they need to know the ‘why’ behind the scan

FMCG october 2010

data. Why are only ‘x’ number of units selling? Why aren’t products selling? Why are these products selling so well? Answers to these questions can be gleaned through a wellequipped field force. Take the scenario of a new line of bottled water that a supplier wishes to take to market. In such a highly competitive market segment, the bottled water supplier needs to understand deeply its product’s value proposition, as well as how it’s going to make the product stand out from its competitors on the retailer’s shelf. While it is not the job of the field force to set up the initial promotion, the supplier needs to provide its field representatives with the ability to gather critical information to ensure the best outcomes. This includes information about shelf position, competitive intelligence, and price points, as well as survey feedback from retailers to find out what does and doesn’t work for them. With this calibre of information at hand, management can assess results very quickly and adjust plans on the go. This is so very important given that competition for retail shelf space is extremely fierce. If products don’t move in alignment with the expectations of the retailer, then the supplier will lose the retailer’s attention very quickly. So, what do suppliers need to do to overcome these challenges? Fundamentally, it comes down to visibility of information. By giving the field force the tools they need to gather important data that can be easily assessed at a management level, the supplier has greater assurance of being much more responsive to market demands and trends. Empowered with the most up-to-date information about what’s happening on the shop shelf or floor, the supplier can also be more nimble and adjust its go-to-market strategy quickly. Communication between the field force and head office underpins visibility of information. While it’s the job of the field force to pull information from the retailer and feed it back to the supplier, tools that allow the supplier to push the most recent and relevant information out to the

g rocer y busi n ess field organisation can achieve even greater competitive advantages. For instance, the supplier can provide information to its field force representatives advising them on what to say and when to speak to customers, and in turn gather the information that management needs to ensure the products being delivered to market align with retailers’ expectations. For any field force, the key to effective communication with head office lies with mobile technology. Solutions that facilitate the two-way dissemination of information quickly and accurately allow organisations to keep a finger on the pulse of what’s happening at a grassroots level. While management can make better decisions faster, field representatives have instant ‘at-the-finger-tips’ access to customer history, allowing them to build an intimate knowledge about specific buying patterns. As a result, the supplier can better manage revenue and profit-generating initiatives. It also allows them to manage territories more effectively, helping retain current customers and acquire new customers. By providing a single view of the customer, tailored to different roles within the supplier organisation, the field force can create a cohesive experience for the customer, improving sales opportunities and customer service delivery. The reality is that most field sales automation solutions fall short in providing accurate and timely information to support their sales activity. Sure, managing a territory, planning the day and managing the call is important. But what is absolutely essential is the ability to enable the field organisation to optimise its selling. Field sales and merchandising staff are in a unique position to capture competitive intelligence, compare visibility rankings, track for compliance and get feedback on promotional activities.

For companies dependent on building strong customer relationships to generate revenue growth, success lies in enterprise mobility solutions that allow the organisation to communicate profile-based information, as well as plan, make, track and record call activity information. Field forces need to be able to capture survey information about products and merchandising, and display profile-based promotions and deals. Successful retail execution can also be achieved by providing field representatives with mobility solutions that allow them to take orders with full visibility of customer history. By using these solutions to set and track cyclical targets and objectives, the supplier can manage multiple channels more effectively and increase customer satisfaction. They can also eliminate margin erosion by improving processes and offerings, while also improving transportation management. By taking the guesswork out of selling to maximise trade promotions through the use of enterprise mobility solutions, suppliers can ensure their field forces are enabled with real-time territory management tools that allow them to better manage sales orders, merchandising, field intelligence, remote information dissemination and call completion. Ensure your field force is with you in the battle for excellence in retail execution. l

Chris Gourvelos is an account executive with Lawson Software with expertise in the food and beverage industry. For more information on the Lawson Enterprise Mobility solution, please visit: www.lawson.com/mobility.

october 2010 FMCG

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First super-size line-haul trucks hits the road One of the first of the supersized trucks allowed under the new transport regulations has hit the road in Auckland. The US manufactured Freightliner truck has had running gear and bodywork designed and fabricated in New Zealand to allow a total length of 22 metres and when fully permitted and New Zealand roading standards catch up, has the potential achieve a gross laden weight of 53 tonnes or beyond. With a total of 10 axles and 36 wheels this giant of the road is the first of several similar vehicles to be owned and operated by Palmerston North based transport operator Booths Transport. It will be travelling New Zealand roads between Auckland and Christchurch on a regular basis. Meeting the latest emissions standards, and with superior fuel economy, the new truck is not only able to carry 13% more

volume of freight than previous large linehaul trucks, it is also a huge moving billboard. Straw and Supplement Supplies is the first advertiser to use the gigantic proportions of these new trucks with a creative and head turning panoramic rural New Zealand scene. Booths Transport managing director, Craig Booth says that the truck signals the start of a new efficient way of moving freight around the country. “We anticipate being able to transport higher volumes, with fewer vehicles which will be configured to create less wear and tear on our roads and consume less non-renewable resources. While there is still some way to go with New Zealand roading standards being improved to allow full benefits of these new vehicles, we have pre-empted the situation as a long-term strategy.” l

MARKETING FLYING HIGH New World Wellington has won the title of Supreme Winner, as well as the awards for Customer Retention & Behavior Change, and the Best Use of Database for their Lifestyle Mailer, in the annual Fly Buys Marketing Awards. Loyalty New Zealand CEO Lance Walker says: “This year’s calibre of entries was extraordinarily high.” The Awards were presented at a gala dinner at the Heritage Auckland, and more than 100 guests from the 53 Partners in Fly Buys and their respective marketing teams and agencies, along with Loyalty New Zealand staff, and representatives from the Marketing Association attended the function. The judges led by Rob Limb, from RAPP, praised New World Wellington for its thoughtful, innovative, entrepreneurial yet also analytical approach. Limb said that the Lifestyle mailer exhibited extraordinary targeting, achieving in mail, things

FMCG october 2010

that are usually only driven in email. Other industry winners included Liquorland which won the Best Use of Star Deals 2010 Special Award and Liquorland marketing manager Angela Butler who won the Fly Buys Marketer of the Year 2010 Special Award. It’s the sixth time that the awards have been held. Past supreme winners include: Liquorland, United Travel, Visique, New World Auckland and New World Wellington. Loyalty New Zealand, operators of Fly Buys, undertakes around thirty marketing campaigns each month, utilising cutting edge customer insights and targeting techniques for the Partners in the Fly Buys programme. l ONLINE: A full list of award winners.

g rocer y busi n ess Food and beverage finalists in international awards Four food and beverage producers from around the country are finalists in the 2010 New Zealand International Business Awards. Waikato-based Canary Enterprises has successfully taken New Zealand butter out of the commodity basket and up the value chain, supplying high quality products to international clients. It is a finalist for the Best Use of Design in International Business as well as the Best Business Operating Internationally (under $10m revenue) category along with Manuka Health and Mount Riley Wines. Manuka Health, which sold its first pot of honey in 2006, today sells over 70 nutraceutical, supplement and medical device products to more than 40 markets. It is also from the Waikato. Marlboroughâ&#x20AC;&#x2122;s Mount Riley Wines has an â&#x20AC;&#x2DC;earth-to-glassâ&#x20AC;&#x2122; commitment to quality, which has helped the family-owned and operated winery grow international sales by about 30 percent annually since 2004. Bay of Plenty business Comvita has developed steadily and surely into a premium global natural health brand. The company has enjoyed a compound annual growth rate over the past five years of 25 percent. It is a finalist in the category of Best Business Operating Internationally (over $50m revenue). In addition to the food and beverage producers, other companies with links to the industry are also represented in the finalist line-up. Dunedinâ&#x20AC;&#x2122;s Scott Technology, which has an intensive research and development programme for its meat processing side of the business is one of these. It has few competitors in the field of automation and robotics within the boning rooms of its major customers. Grasslanz Technology, based in Palmerston North, produces proprietary cultivars, grass endophytes and outputs approaches that businesses are taking to achieve international from plant biotechnology and genomics research to improve farm productivity. Developed by New Zealand Trade and Enterprise (NZTE) in partnership with the private sector, the awards recognise new success. Twenty-five businesses and five business leaders are finalists across a range of categories. Scott Technology is competing in the â&#x20AC;&#x2DC;Best Use of Research and Development in International Businessâ&#x20AC;&#x2122; category, and Grasslanz Technology is a finalist in the â&#x20AC;&#x2DC;Best Commercialisation of Intellectual Property in International Businessâ&#x20AC;&#x2122; section. Winners of nine categories, as well as the 2010 Supreme Winner, will be announced at an awards ceremony on October 13 in Auckland. The awards are supported by Strategic Partner ANZ. TechNZ, the business investment arm of the Foundation for Research, Science and Technology, is supporting four special category awards that recognise particular areas of focus for international business. l

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g rocer y b us ine ss Home grown yogurt maker tops business awards North Shore food production company, EasiYo Products walked away with supreme honours at the Westpac Enterprise North Shore Business Excellence Awards at the North Shore Events Centre. It was a big night for the Albanybased company which also won the Spyglass Excellence in Exporting Award on its way to claim the prestigious overall Westpac Supreme Business Excellence Award for 2010. More than 750 people attended the prestigious gala dinner, the largest number in the awards 13-year history, held to recognise business excellence in North Shore City and Rodney. Fourteen awards were bestowed throughout the evening. EasiYo is believed to be the biggest premium homemade yogurt in the world, with over 1.3 million yogurt makers in homes globally; a fact that didn’t escape the judges attention. The 2010 awards’ judges recognised EasiYo as an exceptional business making an outstanding contribution to New Zealand. “EasiYo is passionate about growing their organisation through innovation and determination, and the entire company goes the extra mile for their customers,” says convenor of judges Matthew Bellingham. “They exceed their financial goals while also ensuring that their culture and principles are held high.” EasiYo is a North Shore export success story. Starting in 1992 from humble beginnings selling at the Auckland Home Show, EasiYo has grown to top $30 million sales by 2009, 75 percent of which is export based. In February 2010, Westland Milk Products – huge exporters to Asia – completed a 100 per cent ownership in EasiYo allowing collaborative ventures in exporting, research and development and supply chain initiatives. l ONLINE: Check www/fmcg.co.nz for a full list of winners.

FMCG october 2010

Supreme winner: From left to right: Richard Trussler, Sandra Sweetman, Paul O’Brien (EasiYo Products) and Ian Blair (Westpac).

: Committed optimism y Eas n ice (Sp i Son jay San i, From left to right: Vibha Son erprise North Shore). NZ Ltd) and Terry Hoskins (Ent

g rocer y busi n ess Government slashes red tape The Environmental Risk Management Authority (ERMA) and the Government are changing packaging and labelling rules for laundry powder and cleaning products. Chief executive of the Food & Grocery Council (FGC), Katherine Rich says: “This decision will save the grocery sector many millions of dollars in unnecessary business compliance costs and preserve manufacturing in New Zealand. “If the 2006 rules had come into effect at the end of this year as planned, a tsunami of compliance costs would have been unleashed upon the grocery sector which would have completely undone major sustainability gains made by our members over the last five years. We are grateful to the Minister for the Environment, Nick Smith, for his recognition of our concerns.” Rich says that ERMA’s decision effectively preserves the current operating environment and maintains consistency with regulation in Australia, the United States, and the European Union. “The expiry of certain provisions overseen by ERMA would

have forced companies to shift from using environmentally friendly cardboard packaging to plastic bottles in order to meet regulatory requirements. This would have sent 30 million extra plastic bottles to landfills, increased compliance costs, and wrecked domestic powder production. “The decisions of ERMA and the Government are a good example of evidence-based regulation which recognises the low level of risk posed by laundry powder in cardboard packaging. “The environmental gains made by FGC members over the last five years, is a sustainability success story, in terms of reduced cardboard use, reduced packaging waste, reduced trucks on the road, and increased powder efficiency in the home (consumers use half the amount). “All of these gains were under threat with the move to large volume plastic bottles containing less concentrated products, fortunately, they’ll now be preserved,” Rich said. l

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Biodiesel Biofuel has been talked about as a viable option to fossil fuel since the 1980s but a number of constraints have prevented its widespread availability to consumers. Until now. By Pauline Herbst. The world watched as the Earthrace, the futuristic looking 100% biodiesel, 100% carbon neutral trimaran, succeeded in breaking the 2008 round-the-world speed record. Captain Pete Bethune’s aim at the time was to increase awareness of the use of renewable fuels and sustainable living which he did, almost bankrupting himself in the process. Since then biofuel has become marginally more mainstream with Gull’s recent launch of Gull Diesel Max, New Zealand’s only B5 blended biodiesel available to the public at a service station. Biodiesel is a renewable fuel for diesel trucks, cars, buses and tractors and in New Zealand is made from vegetable oil or tallow, as opposed to diesel produced using crude oil. The biodiesel to be used in Gull Diesel Max is

FMCG February 2010

manufactured from waste vegetable oil. Three Gull service stations now solely sell biofuel: Gull Diesel Max, Gull Force 10 (98 octane petrol) and Gull Regular Plus (91 octane petrol). Dave Bodger, general manager of Gull New Zealand, says that Gull has been looking to retail biodiesel for quite some time, with the company committed to becoming more sustainable across all of its fuel range. “Gull Diesel Max is a five percent biodiesel blend. This biodiesel blend will not only reduce carbon emissions, but will also be a cleaner and smoother fuel offering more lubricity to your vehicle’s engine. Gull Diesel Max will also come at a reduced price point compared with our competitors’ diesels. “We are thrilled to be using Environ’s biodiesel, as Environ and Gull are both committed to New Zealand’s

environmentally sustainable future. We can all play a part in helping create a better environment by using these fuel alternatives,” says Bodger. “The addition of Gull Diesel Max gives the Kiwi motorist even more fuel choice. Gull represents a choice to purchase fuel that is not only cleaner and more efficient with lower carbon emissions, but also a fuel with a lower retail cost.” Billed as “a smoother, cleaner and lowerpriced diesel”, Diesel Max was discounted by 10 cents per litre the day of its launch, and five cents per litre for the remainder of the week (ending 6pm Friday 1 October). Long term, Gull expects Gull Diesel Max to retail at one to two cents per litre below mineral diesel. The fuel was sourced from New Zealand company Environ Fuels which only started commercial production with B100 (100%) vegetable-based biodiesel in November 2006. In four short years the company has developed to produce high quality, certified vegetable-based biodiesel that meets or exceeds the New Zealand Engine Fuel Regulations 2008 as well as EN14214 and ASTM standards. Michelle McCaughey, general manager, Environ Fuels, says: “Environ already supplies sustainable biodiesel to a number of the tourism sector’s marine vessels, buses and other vehicles, so

it is great to now see biodiesel being retailed at the pumps and made available to Kiwi motorists.” Biodiesel has not always been in favour. Ian Twomey, from energy sector consultancy Hale & Twomey, prepared a report in 2008 for the New Zealand Society for Sustainability Engineering and Science. Entitled Biofuels in New Zealand. Good, bad or ?, the report shows how optimistic headlines and positive media coverage turned when a Time magazine cover accused biofuel of driving up food prices and making global warming worse. It then charts how New Zealand could potentially move through a middle ground of ensuring it uses sustainable biofuels that are still economically viable. Are we there yet? Richard Hale of Hale & Twomey says: “Biodiesel volumes produced in New Zealand are very small compared to the size of demand for diesel generally. It is not envisaged that they would become a main fuel source replacing diesel, rather biodiesel will likely be used to blend in with petroleum diesel (likely to be in the 5%-10% range) or for discrete use in particular applications.” Hale doubts biodiesel will be an export opportunity for New Zealand as, “Volumes are small and can be absorbed within the local market.

Export returns are likely to be lower than using locally. “However provided it meets legal fuel specification requirements biofuel may provide a benefit to those who see an advantage in marketing a fuel that is considered to have an environmental benefit over petroleum diesel.” Surely a potential benefit for service stations. It seems the New Zealand Government has played a large part in the recent availability of biodiesel with the $36 million biodiesel grants programme launched last year. The aim of the grant, to be distributed over a threeyear period, is to kickstart the industry in New Zealand and provide new jobs for New Zealanders while, at the same time, helping to reduce greenhouse emissions. The biodiesel grants are only available to domestic biodiesel producers. Speaking at the Gull launch, the Hon Pansy Wong, Minister of Women’s Affairs, said: “The Government is happy that it has been able to assist Gull to become the first company in New Zealand to make biodiesel available to the New Zealand public. “According to analysis commissioned by the Energy Efficiency and Conservation Authority, biodiesel produced in New Zealand will result in reductions to greenhouse gas emissions of between 50 and 90

Dave Bodger, general manager, Gull New Zealand and the Hon Patsy Wong, Minister of Women’s Affairs at the launch of Gull Diesel Max.

october 2010 FMCG

percent compared to regular diesel and it will not be produced on land of special environmental value nor compete with food production. “I congratulate Gull on its move towards environmentally friendly products and I wish them success with it.” Whether you’re for it or against it, biofuel is going to increasingly infiltrate the market. In July the Minister of Energy and Resources, Gerry Brownlee, “welcomed” the Parliamentary Commissioner for the Environment’s report – Some biofuels are better than others: thinking strategically about biofuels. Although it didn’t reveal anything new, identifying that not all biofuels are good, and that some biofuels can cause severe environmental and social damage, it did note that New Zealand’s current biofuel production is considered sustainable. “I particularly welcome the Parliamentary Commissioner’s

Jeanette Fitzsimons, currently at select committee), does not proceed, and that the Biodiesel Grants Scheme should be modified so that biodiesels other than fatty acid methyl esters qualify for support. The industry can however expect “clarity of policies from 2012 onwards” with officials currently conducting “a review of wider government support for biofuels”. l

Gull in New Zealand Independent oil company Gull started operations in New Zealand by building a terminal in Mount Maunganui in 1998. Tanks were relocated from Marsden Point by barge, a feat it says the opposition claimed was ‘impossible’. Gull made the first retail sales of petrol in 1999 and has grown the network to 40 branded sites. It claims to be the first company to introduce low sulphur diesel to the New Zealand market. In August 2007, Gull again set new environmental benchmarks for the industry with the first retail sales of Gull Force 10, New Zealand’s first biofuel – 10% ethanol mixed with premium gasoline giving higher octane and cleaner performance.

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comment that it makes no environmental sense for New Zealand to import ‘bad’ biofuels. That is why the Government repealed the Biofuel Sales Obligation, implemented by the previous Labour-led government, and replaced it with a grants scheme for biodiesel,” said Brownlee. Other recommendations in the report are that the Sustainable Biofuel Bill (a Member’s Bill in the name of

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Getting lean to beat the recession Booklet could help. By trina snow The Global Financial Crisis means that now is a tough time to be running any business. Retail operators have been hit particularly hard as consumer spending has dried up. While the supermarket and grocery store sector has been one of the better performing retail markets, there is no doubt that many have found it hard going over the winter. During testing times such as this, people naturally look for anything which might help their businesses run better and more smoothly. Somewhat paradoxically, it is often best to implement changes during the quieter times. When a store is really busy, nobody has the time to plan and implement meaningful changes because they are busy in their ‘day job.’ The Department of Labour recently published a booklet titled High performance work - Lifting productivity together. This details the efforts of seven real New Zealand companies who wanted to lift their productivity through a mix of lean thinking and greater engagement with their workforces. While lean techniques are traditionally associated with manufacturing, the same principles and processes can apply to retail stores. The approach is based broadly on the work of Dr Deming (“the man who discovered quality”). In the booklet, it argues that “Deming’s research and work demonstrated that 75%-85% of the problems in an organisation are caused by the systems and not by individual workers. Deming focused on a better understanding of the production process and enlisting the help of every employee, division and supplier in the continuous improvement effort.” At the core of the approach taken by the seven companies are the central concepts of getting ideas from the people on the floor, finding out where the blocks and frustrations are, and working together to find and implement solutions. It is basically common sense put together in a systematic way. The end result is streamlined processes which are more logical, sequential and

Trina Snow, executive director, Nargon.

efficient, and a more engaged workforce who have seen their ideas taken seriously. The booklet noted “staff were asked to help identify the problems, select the solutions and implement them. For some, this was the first time this had happened. It makes sense because people on the floor are the most likely to see where waste occurs (in terms of time, effort or money) and suggest the process changes and improvements needed to fix them. The workers know because they are right there and doing the job every day.” Each company took a different approach but they concluded the best way to introduce the changes was to “couch it in terms of reducing waste and eliminating the daily frustrations on the floor”. One participant explained “the way we pitched it was not ‘what is going to make the boss more money?’ It was ‘what is going to remove frustrations in your life?’” This kind of approach involves a change of thinking for everyone. Some of the common aspects in the successful projects included: • Simple aims including getting rid of waste, fixing up processes and eliminating frustrations. • Recognition of the importance of the staff contribution to improvements. • Encouraging the employees to speak also requires management to listen and respond. • Giving staff input into deciding which frustrations to fix first. • Improving the flow of work – layout, process, errors, quality, timing. • Eliminating the bottlenecks. • A more collaborative working style and organisation. Copies of the booklet should be available from the Department of Labour (www.dol.govt.nz).

october 2010 FMCG

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‘Sniff’, ‘bang’, and ‘slurp’

Carrick Robinson is a partner at intellectual property law firm James & Wells. Email: carrickr@jaws.co.nz

The rise of non-traditional trade marks. By Carrick Robinson

The way certain products smell, the colour of a candy bar wrapper, or a catchy tune. More and more New Zealand businesses are applying to the Intellectual Property Office to register these as trade marks. The purpose of a trade mark is to indicate where goods or services come from. Mostly we think of trade marks as word marks, such as Nike, Sony, or Kodak, or the corresponding stylised or logo versions of these words. However, under the Trade Marks Act 2002, a trade mark is a “sign” which is capable of (i) being represented graphically, and (ii) distinguishing one person’s goods and services from another’s. A sign now includes a brand, colour, device, shape, smell, sound, taste, or word, or a combination of these. So a wide range of visual, aural, and olfactory signs can potentially be registered as trade marks. Some of the sound marks registered in New Zealand include Pizza Hut’s jingle “0800, 83, 83, 83”, and McDonald’s “Ba da ba ba ba I’m lov-in it” tune. There is also, for those who are old enough to remember, Unilever’s Sunlight “squeak” sound, which is described as “a squeak produced by the friction of thumb or forefinger on dishware”. Single colour marks are relatively popular in New Zealand. Telecom has registered the colour yellow in relation to telephone directory services, Cadbury has registered the colour purple in relation to block chocolate and chocolate bars, and BP has registered the colour green in relation to its petrol station services. Smell can be used to lure customers (remember how you weren’t hungry until you walked passed that bakery?) Some of the stranger smell and taste marks that have been applied for include the smell of fresh cut grass, used to give tennis balls their aroma, and the taste of artificial strawberry for pharmaceutical products. Although ‘non-traditional’ trade marks such as smell,

colour, etc, can be registered in New Zealand, some hurdles need to be overcome before such marks can be registered. As mentioned above, the sign must be represented graphically, to provide a fixed point of reference so that the identity of the mark is clearly and unambiguously recorded on the Trade Marks Register. For colours, an accurate description of the colour must be provided using a readily available colour standard (such as the Pantone colour system). Similarly, with sound, smell and taste marks, a precise verbal description must be provided. Again, no major problem here with musical marks, but it could be very difficult to accurately describe smell, taste, and certain sound marks. The next obstacle is to convince the Intellectual Property Office the public recognise that, say, the colour is, by itself, a trade mark of a particular business. This is not always easy to do. As such, applications to register many of these marks, and colour, shape, smell and taste marks in particular, will need to be supported by substantial evidence of use.This high evidential burden often means many applications to register such marks are unsuccessful. Registering a trade mark provides the owner with the exclusive right to use the mark in relation to the registered goods/services. A third party who uses the same or a confusingly similar mark in relation to the same or similar goods/services will infringe the registration. The difficulty with, for example, smell and taste marks, will occur in determining whether there is infringement of these registrations. The obvious question which springs to mind is “Will a judge be able to tell which tastes, smells, or colours are identical or similar to each other and, if so, how?” It will be interesting to see how the courts handle this sticky question. october 2010 FMCG

the business of liquor reselling 56

FMCG February 2010

The boat has sailed Does New Zealand wine have an investment future? By Keith Stewart Wine is one of the few hot items in the international investment world right now. Not making and selling wine as a business proposition (which is currently going through one of its down cycles), but fine wine as an investment. But the phenomenon that has seen top French, Californian and even Australian wines surging in value in recent months is not happening to New Zealand wine, which leaves the local wine market short of a factor that is key to the success of most of the world’s wine industries. Why is New Zealand missing the investment boat? According to Neil Campbell of Webb’s Auctions, the leading fine wine auctioneers in the country: “There is a lot of good will towards the New Zealand wine industry in the market here but there are some tensions. Very few vineyards have had the luxury to develop wine that ages well. Most of our winemakers are actually fruit growers.” A harsh summary, but fair, and one that fine wine buyers agree with on the whole, and usually with their credit cards in the auction houses. Quite simply there is such a small cohort of wine with a record of pedigree that delivers bottle-age certainty that most investors in bottles for the cellar, or matured wines from somebody else’s, would rather bid for something French and rather more certain.

One fair measure of the credibility of New Zealand’s best wines is to consider their performance at a reputable overseas auction house, like Langtons in Australia. Its most recent auction, which concluded on 21 September, showed clear interest in New Zealand Pinot Noir, but top prices were only paid for a select few, even fewer for those with reasonable bottle age. Martinborough Vineyard 1996 Pinot Noir stood out as the oldest wine that carried any price cachet, while Dry River, Ata Rangi, Escarpment, Felton Road and Pyramid Valley all fetched good prices for younger wines. Others, such as Wither Hills and Te Kairanga sold at prices that represent a considerable loss of investment over their original retail cost. Even such a notable brand as Cloudy Bay failed to attract attention, its 1997 attracting a top bid of just A$15 a bottle. Outside of Pinot Noir there was not much to excite bidders, and for sellers, even less. While there is more interest in New Zealand in a number of wines outside the Pinot Noir category, particularly in the wellestablished Cabernet/Merlot/Franc wines that have the cellar pedigree, there is little to be gained financially for an investor to buy these wines and sell them on as mature bottles. Ten year-old Te Mata Coleraine and Stonyridge Larose usually sell for prices similar to wines on new release,

which does represent a small margin on initial investment, but hardly the numbers that charm fine wine investors buying blue chip Bordeaux and Burgundy. The Live-Ex 100, a summary of the top 100 wines sold in auction internationally, has grown 300% since it was launched in 2005. This would make a bottle of 2000 Coleraine now worth $180 at auction, rather than the $70 it currently fetches. While this may be good news for local restaurants that want to buy ready-to-drink classics for their cellars, it is taking away a significant price stimulator from the market. Indeed it could be argued that without this strong investment market, here and internationally, New Zealand’s best wines are not getting either the credibility their quality deserves, or the price. This is bad news for the winery, and for the local wine trade, which must continue to operate at lower than optimum profit levels in the fine wine sector. The problem may not just be with New Zealand wine, however, as Neil Campbell says. “The blue chip material always maintained its value in the past, because of rarity. There was not much really good stuff brought into New Zealand in the past. But that’s now changed and auction prices have responded downward, and we now have a small but complicated local market for these wines.” What he is explaining is that the high return investments of European fine wine buyers is not repeated here with the same level of profit. “There is a very speculative aspect to the northern hemisphere market, and you cannot extrapolate New Zealand from the European experience.” Big ticket Bordeaux and Burgundy wines tend to sell at auction in New

Zealand for less than the average price for these vintages in London or Hong Kong, with latest results from wines such as 2003 Haut Brion and Mouton Rothschild selling for 25% to 30% less than the same wines in London. Similar situations exist for more off-piste labels from the top quality end, such as Aldo Contero’s top of the range 2001 Barolo, which has been sold in auction here for half its European retail price. That is what is called a bargain, but it only happens here where Aldo Contero is not the powerful name it is in London and New York, where his wines fetch prices comparable with those of the best Burgundies. The good news for consumers is that New Zealand’s auction houses are genuine bargain grounds, where very fine wines can be had for much less than they can in international auction rooms. For investors, the only option is to buy your wines in Europe, store them in Europe and resell them when the investment matures through the international auction channels. This is the way most serious wine investors do the business, most never even seeing the wines they will spend millions on, and ultimately make more on. For many the greatest rarities, such as Château Pétrus and Château Cheval Blanc are bought and sold within months, often before the wines are even bottled and delivered, as the prices begin to ratchet up as soon as the first tasting notes are published. If you are in the business of fine wine, this is where the real action is. Large brokers allocate more budget to their Bordeaux grand cru portfolio each year than they do their entire New Zealand trade. When New Zealand can command just 10% of that interest it will have become a serious player. l october 2010 FMCG

Export celebrates half a century DB Breweries is rolling out a new look for DB Export Beer to mark the 50th anniversary of its original brew. This will coincide with the limited edition re-release of DB Export Beer in quart bottles, first brewed in 1960. Changes include new packaging for Export Gold and Export Dry. The DB logo and name has been reintroduced to inject authenticity and heritage cues and former master brewer Morton Coutts’ signature has been added to acknowledge the man who started it all. Export Dry’s packaging has been altered to deliver a refined yet understated look. Clear plastic labels back and front enable the brand to resonate with modern consumers and offer a credible challenge within the premium beer market. Export Dry is now available in a 12 pack as well as the existing 15-bottle pack. Export Gold graduates from a stubbie to a long-neck bottle and its packaging design has been enhanced to reflect its drinker; honest and relaxed. According to DB Export marketing manager, Dave Shoemack,

consumer research indicated loyalty was strong for the family but the Export brand proposition itself needed to be updated through more contemporary packaging that importantly embraced its rich and largely unknown history. “Don’t mess around with the beer though,” was a near universal sentiment says Shoemack, “and we haven’t. The beer in the Export Dry, Gold and 33 bottles remains the same great brew. We’ve also incorporated a focus on original master brewer Morton Coutts’ 1958 Black Budget-beating vision: let nothing come between a man and a great beer. The new design-led look and feel reflects Export’s place in the modern market, while simultaneously emphasising its track record and heritage – things our drinkers tell us they value,” he says. The new packaging is being supported by an extensive media campaign featuring a 90 second launch TV ad which details DB Export’s remarkable history and successes to date. There is also a five minute version telling the extended story which can be viewed exclusively online.l

Name change for Brancott Estate To celebrate the name change from Montana to Brancott Estate and to continue the brands pioneering spirit, two new sparkling wines will be released in the Brancott Estate Reserve range this month. Brancott Estate Reserve Sparkling Pinot Noir and Brancott Estate Reserve Sparkling Sauvignon Blanc join the current Brut Cuvée and Rosé in the range. At the same time, the brand will be presented in newly designed packaging. Brancott Estate wines are named in honour of its original Marlborough vineyard, Brancott Vineyard, where Montana first pioneered New Zealand’s flagship varietal Marlborough Sauvignon Blanc. Brancott Estate Reserve Sparkling Pinot Noir presents a fresh take on Pinot Noir. “The wine shows lifted blackberry, boysenberry and raspberry

FMCG october 2010

aromas one expects of good Pinot Noir,” says Brancott Estate chief winemaker Patrick Materman. While sparkling Sauvignon Blanc wines have proven popular in New Zealand recently, this is the first time that the creators of Marlborough Sauvignon Blanc have released a sparkling version of the varietal they originally planted at Brancott Vineyard in the 1970s. The new release Brancott Estate Reserve Sparkling Sauvignon Blanc has the further distinction that its still counterpart, Brancott Estate Marlborough Sauvignon Blanc, is New Zealand’s most popular Sauvignon Blanc. Along with the release of these two new wines, Brancott Estate Reserve Brut Cuvée and Rosé will also be dressed in the new-look packaging. The four sparkling wines in the Brancott Estate Reserve range have a recommended retail price of $23.95. l

NZ wines do well on home soil Formed in 2005, the New Zealand International Wine Show is firmly established as the largest wine competition held in New Zealand. In its inaugural year there were over 1900 entries rising to a record 2273 in 2008. The 2010 New Zealand International Wine Show attracted 2107 entries, making it the second largest wine competition ever held in this country. A record 195 gold medals were awarded by the 24 senior wine judges involved over the three days of the competition. Notable amongst the results are the 23 gold medals awarded to 2010 Sauvignon Blancs. This is the first major endorsement on the quality achieved in the current vintage. The 28 gold medals in Pinot Noir were spread throughout the main growing regions and over several vintages. As in past years, the heavy red classes are dominated by a line-up of sensational wines from Australia. A record number of entries were received from across the Tasman and amongst the gold medals are several wines offering outstanding value. Chardonnay is well represented with 23 golds while the very large entry in the Pinot Gris class produced 13 gold medals. Champagne, ports and Italian reds were also well represented amongst the golds. Villa Maria received the Champion Riesling and Champion Merlot Predominant trophies with the Villa Maria Reserve Merlot 2008 and Villa Maria Reserve Riesling 2008. Villa Maria senior Auckland winemaker Nick Picone says: “As an

international show and one of the largest in New Zealand, it’s a great marker for how our wines are stacking up against our international competitors. New Zealand’s geography and climatic conditions allow us to produce distinctive and world class wines from a wide range of varietals including Riesling and Merlot, and it’s yet another fantastic achievement for our dedicated viticulture and winemaking teams across the Marlborough and Hawkes Bay regions.” Villa Maria was awarded more gold medals for their wines than any other winery in the competition with a total of nine golds across the four wine tiers: Private Bin, Cellar Selection, Single Vineyard and Reserve. Church Road also featured with the winery being awarded six gold medals and three trophies, including the highly coveted Champion Wine of the Show accolade for the 2008 Church Road Reserve Chardonnay. It was also awarded Champion Viognier for the 2009 Church Road Reserve Viognier. Graham Bartleet, Hawke’s Bay regional viticulture manager, says: “The staff at Church Road are incredibly dedicated and these accolades are a reflection of our commitment to ensuring that we produce top quality New Zealand wines to the very best of our ability.” l

Auckland bartender wins Chase Bickerton has just won the New Zealand Maker’s Mark Cocktail Competition run by Beam Global. His prize is a trip to Kentucky as a guest of Maker’s Mark to compete in the International Maker’s Mark Bartender of the Year competition. He will also have dinner with the owners and spend a day working in the distillery, an opportunity few people in the world get. Bartenders needed to create their own signature drink with premium bourbon Maker’s Mark, presented in a handmade pewter tumbler specially released for the competition. Bickerton, who works at the Corner Store in Mt Eden, created The Perryville Cobbler, a mix of Maker’s Mark bourbon with flavours of maraschino, raspberries and orange. He even handcrafted musket balls to be served as an edible garnish. The Perryville Cobbler pays homage to the great Perryville

battle, which was considered the biggest civil war battle in Kentucky. “My idea was to create a drink that paid homage to the lives that were lost during the battle – hence the musket balls – as these were people that were prepared to fight and die to live in Kentucky. My drink was also designed to recognise the pioneering spirit of Dale de Groff in creating a perfect cobbler.” says Bickerton. Judges Ben Stuart and Wendy Ballard, brand ambassador and trade marketing manager at Beam Global New Zealand said: “This was a hard competition to judge. There were a clear top seven bars in the 20 who were invited to enter.” says Ballard. The invited bars were judged on a mixture of components including volume, promotion within the bar, promotion externally, use of the pewter cups and the cocktail. Bickerton will fly to Kentucky on the 10 November. l

october 2010 FMCG

Stoke beer available The McCashin family has recently launched a new brand of beer called Stoke. Craft beer is once again flowing from the Stoke site vacated by Lion Nathan, which bought out the original McCashin family label, Macs, in 1999. Although Lion bought the Macs label, it only leased the Stoke brewing plant. By 2008, when Lion had moved all beer production to other centres, the McCashins were left with an empty building. “We had to have a business that paid the rent,” said Dean McCashin. And so he and wife Emma began brewing. They started with cider – and in September approximately 21,000 litres of Stoke amber, dark and gold beer came off the bottling line. “The name Stoke was an easy choice,” said McCashin. “The brewery in Stoke is iconic and even during the time it was closed, campervans and cars would turn up with their Lonely Planet Guide to do a brewery tour.” McCashin’s Brewery in Stoke, Nelson has a long history of beer and brewing. The Stoke site started out in the 1930s

as the Rochdale Cider Factory but was bought in 1980 by Terry McCashin and renamed McCashin’s Brewery. When McCashin opened the brewery in 1981, the only other breweries were Lion Nathan and DB. It had been so long since anyone had applied for a brewing licence that no one knew where to find the application forms. l

New name and life for wine festival Harvest Hawke’s Bay will no longer be part of the Hawke’s Bay Winegrowers event portfolio for 2011 following a review of the past year’s activities and strategic direction for the regional wine association. Gameplan Event Management, who has run the annual February event under contract to the regional wine organisation for the past seven years, will continue with an event under a new name in a centralised venue with a greater Hawke’s Bay wine and food regional focus. With greater demands on resources to promote Hawke’s Bay in a global market, Hawke’s Bay Winegrowers members resolved, at a strategic wine summit held last month, to support greater international focus.

FMCG october 2010

Lyn Bevin, executive officer of HB Winegrowers, says that the name ‘Harvest Hawke’s Bay’ would not be lost forever. “We will retain ownership of the name and may potentially use it for more streamlined activity with international trade in the future. Right now we are focused on further developing the promotion of the ‘Hawke’s Bay Wine’ brand with Australia and Asia as key target markets.” The summer event season had greatly changed over the years since Harvest Hawke’s Bay began, with a greater number of concerts, wineries and food producers adding colour, diversity and visitor choice, says Bevin. “The new event will provide visitors and locals with the experience of our fantastic wine region and wines.” l

Trophy triumph for NZ Villa Maria has been awarded the trophy for Bordeaux blends for the Villa Maria Reserve Cabernet Sauvignon Merlot 2007, while Vidal Estate has taken the Shiraz Trophy at the Tri Nations Wine Challenge. The Tri Nations Wine Challenge is an important event in the Australasian wine awards calendar, judged by the ‘best of the best’ wine writers from the three competing nations. This year’s show saw 352 wines put forward for judgement in 13 categories. Wines are entered by invitation, making the Tri Nations awards unique by world standards. New Zealand did particularly well overall in the competition, winning six of the 13 classes and taking out the overall winner of the competition. Villa Maria founder and managing director Sir George Fistonich described this challenge as a hotly contested competition amongst our fellow tri nations’ countries. “It’s quite an accomplishment to beat the Aussies with a Cabernet predominant blend, as some still think New Zealand’s climate is too cool for Cabernet Sauvignon. “New Zealand is often better known for our success in white and particularly Sauvignon Blanc wines, but our red wines are performing very strongly

and this is further acknowledgement of Villa Maria’s reputation for making exceptional quality wine across a range of varietals,” he said. The Vidal Reserve Syrah 2007 was the trophy winning wine judged the best of 33 other Syrahs (or Shirazs) that were asked to compete in this invitation only challenge. Vidal Winemaker Hugh Crichton said the Tri Nations trophy is one of their greatest achievements ever, “Vidal has a history of producing Syrahs of fine quality and distinction. Coming up against our rugby rivals on the wine front is an excellent test of what we’re doing with this variety and, as on the field, we’re clocking up the wins,” he says. New Zealand judge Bob Campbell said: “It is particularly exciting for New Zealand to win the Syrah and Bordeaux Blend classes because both Australia and South Africa have a reputation for making world class examples of both. Australia, for example, has 45,000 hectares of Syrah while South Africa has around 8500 hectares of the variety. New Zealand by comparison has less than 300 hectares of Syrah vines,” he said. This win comes just weeks after the same wine was awarded three trophies at the Romeo Bragato Wine Awards. l

Top: Villa Maria senior Auckland winemaker Nick Picone at the award’s ceremony in Sydney with Australian judge Huon Hooke. Above: Hugh Crichton, Vidal winemaker at the awards dinner with Australian Judge Huon Hooke in Sydney last night.

New event and hospitality manager Helen Emler has joined Villa Maria as the new events and hospitality manager. She has an extensive background in international event management, most recently with the Restaurant Association of New Zealand as sponsorship and event manager. Emler’s previous experience includes managing large scale and high quality events

such as the Cannes International Film Festival (France), gala and awards dinners, automotive and numerous other launch events. In her new role Emler will be in charge of Villa Maria’s events team including the management of the conference and event facilities, the Vineyard Café and Cellar Door and the Villa Maria summer concert series. l

october 2010 FMCG

Leading a

winning team In the wake of DB Breweries’ success at the recent BrewNZ Awards, BWS asks Brian Blake, managing director, about his winning formula. BWS: What do you attribute DB’s wins to? Brian Blake: I was fortunate to be present at the BrewNZ awards. The key to our success really lies with our brewers who are 110 percent committed to brewing the very best beer possible. That dedication undoubtedly stems from our founding brewer, Morton Coutts, who was equally committed to ‘challenge the impossible’. While it’s been a tough period for many in the industry, DB remains committed to investing in its people and making great beer. BWS: What does this mean for DB? BB: The awards are a wonderful endorsement for our brewing team. Our success also reinforces DB’s credentials among the marketplace as a brewer of outstanding beer brands. It’s interesting that the craft brewers typically dominate the BrewNZ awards. Our recent success shows that our beer brands are high quality products worthy of recognition. BWS: How do the winning brands (Monteith’s/ Tui/ Export) stand out from the competition? BB: Tui Blond’s success at BrewNZ was an incredible achievement on its own. It was launched last October and entered a highly competitive category, premium lager. A year later though it took out the ‘New Zealand Lager and Premium Lager Styles Trophy’ at BrewNZ with sister brand, Tui East India Ale, collecting the ‘New Zealand Draught Trophy’. Export 33 won the ‘Reduced Alcohol, Reduced Carbohydrate and Gluten-free Styles Trophy’ for the second year running despite increased competition in this growing category. Monteith’s also continues to win with four medals at BrewNZ. Again these successes lie with our brewers. BWS: Is there internal rivalry between the brands (healthy competitive spirit)? BB: Yes, by nature DB’s people are very competitive but it’s an equally friendly environment. Whilst they are competitors, the team works together to provide a comprehensive portfolio to cater for all occasions.

FMCG october 2010

BWS: How important are competitions like BrewNZ for the company? BB: The BrewNZ awards rank extremely highly in terms of global brewing awards. It’s an independent endorsement of our brands and secondly, it provides a great opportunity for us to share our successes, and our brand. BWS: What’s the next step for DB? BB: The next step for DB is ongoing innovation. We have new products on the way and rebranding for others underway. Heineken has a busy year ahead through our support of RWC 2011 and Tui is rolling out new advertising and packaging this summer. We’re also engaging in more and more dialogue with our customers and consumers to ensure we continue to make beer that not only tastes great, but that suits changing needs and occasions. BWS: Where do you see the industry headed? BB: The industry is moving away from a strong emphasis on volume and market share to creating more value within the beer category. We’ve seen this with the major players who are looking to trade drinkers up to sub-premium and premium brands. Export 33 and Tui are very good examples of this. The industry realises that it has to sustain profitable growth out of essentially selling the same volume. I have a very positive outlook for the future of the beer industry. BWS: What’s your personal philosophy on driving a business forward? BB: A good business, regardless of size, will not succeed without committed people. I’m fortunate to lead a team of 500 extremely passionate people across New Zealand who are proud of the beer brands we produce and market. A vibrant culture and strong leadership is equally vital and I have placed a great deal of focus in this area to ensure that DB achieves sustainable growth. l

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Has your team toasted the close of day in a remote New Zealand location? Maybe you’ve knocked off a gruelling event for charity or opened a new factory? Preserve the memory – then send it in to editor@fmcg.co.nz.

DIARY

OCTOBER

12-14

FOODTECH PACKTECH ASB Showgrounds, Auckland www.foodtechpacktech.co.nz

NARGON 2010 SUPPLIER AWARDS Bluestone Room, Auckland www.nargon.co.nz

2011

17-21

SIAL PARIS International meeting place for the food industries, Paris, France www.sial.fr

31-2 Nov

SWEETS MIDDLE EAST International exhibition for the sweets and confectionery, bakery, snack food and ice cream industry, Dubai, United Arab Emirates www.sweetsmiddleeast.com

JANUARY 16-18

WINTER FANCY FOOD SHOW San Francisco, USA www.specialtyfood.com

21-30

INTERNATIONAL GREEN WEEK BERLIN Fair for food, agriculture and horticulture, Berlin, Germany www.gruenewoche.de

30-2 FEB

NOVEMBER TBC

NZACS LEADERS SUMMIT

3-6

FGC ANNUAL CONFERENCE Annual members’ conference of the New Zealand Food & Grocery Council, Sydney, Australia www.fgc.org.nz

OWN LABEL SHOW The UK’s private label exhibition, Barbican, London, England exhibiting@ownlabelshow.co.uk

ISM International sweets and biscuits fair, Cologne, Germany www.ism-cologne.com

FEBRUARY 9-11

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

5-7 GOOD FOOD & WINE SHOW BRISBANE Australia’s biggest gourmet deli, most fascinating kitchen shops and delicious restaurants, Brisbane, Australia www.goodfoodshow.com.au

16-19

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

11-13

FHC CHINA 2010 The 14th International Exhibition for food, drink, hospitality, foodservice, bakery and retail industries, Shanghai New International Expo Centre (SNIEC), China

27-2 MAR

GULFOOD DUBAI www.gulfood.com

GREAT NEW ZEALAND SAUSAGE COMPETITION An annual highlight for butchers and small-goods manufacturers. Auckland Seafood School, Auckland.

1-4

GLUTEN FREE FOOD & ALLERGY SHOW Christchurch Convention Centre, Christchurch www.glutenallergyshow.co.nz

11-13

17-19

20-21

MARCH

FOODEX International food and beverage exhibition, Makuhari Messe, Tokyo, Japan http://www3.jma.or.jp/foodex/en/ NATURAL PRODUCTS EXPO WEST International trade show for the natural, organic and healthy products industry, Anaheim, USA www.expowest.com

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

2010.