FMCG February 2012 by mediaweb

incorporating

9 421902 251016

february 2012 Volume 18 No 1 $9.15

THE BUSINESS OF MANUFACTURING • LOGISTICS • SUPERMARKETING

fmcg . co . n z

•

foo d ne w s . co . n z

WHAT IF

YOU DISCOVERED OUR FRESH NEW LOOK?

WWW.BRANCOTTESTATE.COM

Asking “what if?” led us to create new contemporary packaging for Brancott Estate that reflects our brand story and honours our heritage. Where will it lead you?

r e m m u S Bu t t e r f l y Sales Sensation

Ingham’s NEW Butterfly Chicken range delivers value and versatility in summer

ranging to expand the fresh category. With brilliant new packaging and two new summer flavours, these butterfly cut whole birds, are perfect on the BBQ and will see your customers spoilt for choice. s Tandoori (CLASSIC) – a blend of traditional and classic Indian flavours. s Herb & Garlic (NEW) – delicately seasoned with popular herbs and garlic. s Lime & Chilli (NEW) – fresh and zesty seasoning with chilli flakes and lime flavours.

Media and promotion to ensure sales ‘fly’ out the door. Targeting the majority of household shoppers focused on summer chicken purchases. We are investing in heavily in advertising over the next three months with dedicated T.V, Magazine, Radio, PR and Online advertising. Along with a Butterfly Bay Escape instore promotion fronted by Kiwi netball legend and former Silver Ferns captain Bernice Mene. Promotional details www.inghambutterfly.co.nz.

ACU_ING_11218

POS (where available) Online Magazine PR Promotion Radio Trade Ambassador

January 23rd 30th

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February 13th 20th

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March 12th 19th

April

26th

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range’em… your customers will love’em.

9th

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For more information on Ingham fresh and frozen products please call Ingham’s sales department on 0508 800 785.

Editor’s note Industry news

Category checks

18 Bread 28 Salads & Dressings 30 Baby Care Essentials 36 Health & Beauty

contents

6 8

F E B R U A RY 2 0 1 2

Up Front

Regulars 11

FGC On the radar for 2012

NARGON Trends to watch in 2012

13 FMCG Online 14 Fresh and local

In season

16 Q&A

Tim and Phil Grainger explain Venerdi’s philosophy

23 New Easter treats in store 24 Feature

The value of the Tick

35 What’s Hot

New products in store

61 Subscription form 64 Snap

Spotted out and about

65 Diary

Your guide to upcoming industry events

OUR COVER New Zealand’s Brancott Estate wines are unveiling a contemporary new look in early 2012, with distinctive and innovative packaging being launched across the entire range.

contents F E B R U A RY 2 0 1 2

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

40 Grocery business news 45 Recruitment 46 Feature

What are you saying socially?

48 GS1

Dr Peter Stevens explains a new National Recall Portal

Convenience store and oil channel updates

50 Feature

Efficient supply chain management

54 C-store industry news 56 Nargon

The year ahead

57 Directory 62

58 Feature

New varieties for New Zealand wine

61 BWS industry news 62 Best of Ireland

Driving Innovative Growth in High Value Salami Snacks!

NZ Salami consumption is growing rapidly. Verkerks is the clear market leader with 35% growth in the past 2 years.* On the back of their great taste and increased nutritional awareness high protein meat snacks are a fast growing category worldwide.

Salami - Strong Growth Performer *

Protein snacks are a healthier alternative to energy-dense carbohydrate snack options. Verkerks New Protein Snack Pack meets the needs of busy parents wanting a safe protein offering in their childrenâ&#x20AC;&#x2122;s lunchbox that is guaranteed not to come home!

Children love salami, making it the perfect lunchbox snack!

This exciting new product will be supported with an extensive nationwide demonstration programme. *Aztec data to 8th Jan 2012

0800 Salami

www.verkerks.co.nz

e ditor ’s note Vol 18

No 1

FEBRUARY 2012

issn 1175-8279

Incorporating

Serving the business of manufacturing, logistics and supermarketing

tamara rubanowski – editor editor@fmcg.co.nz

Juleigh buchan – account manager Ph: 09-529 3000, Mob: 021 140 3456 juleighb@fmcg.co.nz

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

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

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

Design Cherie Tagaloa

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

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Busy times and hot debates A busy new year lies ahead with multichannel marketing, small format stores, QR codes and e-commerce among some of the key trends to watch in 2012. Online grocery and mobile activity is taking off overseas in a big way and is predicted to gain significant market share in the near future. Tesco is now offering online shopping in central Europe and Starbucks has just launched its mobile payment app in the UK. More and more New Zealanders are enjoying the convenience of shopping from home or ‘on the go’ with just a few clicks. How is your business reacting to this development? E-commerce is fascinating and growing at an incredible pace. If you are involved in this domain then we would love to hear from you. How do you create an effective online presence, generate loyalty, engage your highest-potential shopper segments and tap into foreign markets? If you have new technology, an interesting experience or expert advice to share, please email editor@fmcg.co.nz. In this issue we find out why mobile coupons have compelling advantages over their paper antecedents, why social media policies are important and what your business needs to grow in 2012. NARGON and FGC chief executives

share their predictions for the year ahead, while Dr Peter Stevens from GS1 explains the launch of a National Recall Portal. Our team reviews some of the latest product launches and category drivers, with special focus on fresh seasonal produce, bread, body care and baby care products. Did you know that New Zealand’s birth rates in 2011 were down by 1470 over the previous year, yet there has been extraordinary category growth in Infant Formulas of more than 60%? This growth is driven by exports of infant formula to Asia following some product quality scares associated with Chinese-manufactured formula. Food safety, food labelling and the proposed Food Bill will be hotly debated topics this year and you will find regular updates and commentary on foodnews.co.nz – a free e-news service for all FMCG subscribers. Subscribe to FMCG this month and you could also be in to win a double pass to the Easter Show Wine Awards (worth $490)! This dining experience matches New Zealand’s top 15 gold medal wines to a sensational degustation menu created by Chef Simon Sheehan. You will find a subscription form on page 61, or simply email subs@mediaweb.co.nz.

Official b2b magazine for the Gluten Free Food & Allergy Shows. Media partner Nargon Supplier Awards.

Tamara Rubanowski editor@fmcg.co.nz

WE’RE MAKING THE WORLD OF BREAKFAST CEREAL ‘HONEST’ & BETTER FOR EVERYONE!

ALWAYS NUT FREE!

In the Health Food Category, Freedom Foods are enjoying growth on the simple philosophy of wholesome, nutritional, healthy cereal with nothing to hide that also addresses consumers with special dietary requirements. Through high quality, great tasting foods which are “free from” the nasties that are found in thousands of products in supermarkets, Freedom Foods will continue to deliver on “better for you” products for all consumers.

The Freedom Foods range is available in the health food section of your local supermarket.

COMING SOON!

To stock Freedom Foods products contact Freedom Foods Customer Service on Free Call 0800 448 72 or visit www.FreedomFoods.com.au/Buy-Our-Stuff/Around-the-World

news Food demand doubling by 2050 Global food demand could double by 2050, according to a new projection by US researchers. Producing that amount of food could significantly increase levels of carbon dioxide and nitrogen in the environment and cause the extinction of numerous species. But this can be avoided if the high-yielding technologies of rich nations are adapted to work in poor nations, and if all nations use nitrogen fertilisers more efficiently. “Agriculture’s greenhouse gas emissions could double by 2050 if current trends in global food production continue,” said one of the researchers. Global agriculture already accounts for a third of all greenhouse gas emissions. Many of these emissions come from land clearing, which also threatens species with extinction. If poor nations continue current practices, they will clear a land area larger than the United States (two and a half billion acres) by 2050. But if richer nations help poorer nations improve yields to achievable levels, that could be reduced to half a billion acres. The research, published by the Proceedings of the National Academy of Sciences, shows that adopting nitrogen-efficient “intensive” farming can meet future global food demand with much lower environmental impacts than the “extensive” farming practised by many poor nations, that which clear land to produce more food. The potential benefits are great. In 2005, crop yields for the wealthiest nations were more than 300% higher than yields for the poorest nations. “Strategically intensifying crop production in developing and least-developed nations would reduce the overall environmental harm caused by food production, as well as provide a more equitable food supply across the globe,” said

one of the researchers. The Food and Agriculture Organisation (FAO) of the United Nations recently projected a 70% increase in demand. According to the researchers, either projection shows that the world faces major environmental problems unless agricultural practices change. The environmental impacts of meeting demand depend on how global agriculture expands. The researchers explored different ways of meeting demand for food and their environmental effects. In essence, the options are to increase productivity on existing agricultural land, clear more land, or a combination of both. They considered various scenarios in which the amount of nitrogen use, land cleared, and resulting greenhouse gas emissions differ. “Our analyses show that we can save most of the Earth’s remaining ecosystems by helping the poorer nations of the world feed themselves,” they said. l

SIAL 2012 preparations under way The largest and fastest growing food, beverage and hospitality show in China, SIAL, will take place from May 9-11, 2012 in Shanghai’s New International Expo Center. The 13th edition of SIAL China is a regional offshoot of the original SIAL (Salon International de l’Alimentation), a twoyearly trade fair in Europe, which will be held again from October 21-25, 2012 at the Parc des Expositions de Paris Nord Villepinte in Paris, France. SIAL Canada will be held from May 9-11, 2012 in Montreal. This event caters to North American food-industry professionals and is one of the industry’s most important meeting places for North America, hosting around 700 exhibitors and 13,000 visitors from over 60 countries each year. SIAL Canada is an integral part of the SIAL Group - the

FMCG FEBRUARY 2012

world’s leading network of food-industry shows, which has a presence on four continents (Paris, Montreal/Toronto, Shanghai, São Paulo and Abu Dhabi). Retail and commerce, food manufacturing, foodservice, and wine industry professionals, as well as buyers from across the world attend SIAL to find new products and/or suppliers. Paris-based SIAL 2010 boasted 5838 exhibitors from 106 countries, with France being the leading exhibitor country. Exhibitors can email exhibit@sialparis.com for enquiries while visitors will find all relevant information for the event on sialparis.com. For more information on the event in May in Shanghai visit sialchina.com and for the event in Canada visit sialcanada.com. l

n ews Crucial time for mobile marketing According to a new report from Juniper Research, the global redemption rate of mobile coupons will average over 8% by 2016, an eightfold increase over the best paper coupons campaigns. North American and Western European markets are now beginning to follow the same growth path as the Far East and China and by 2016 there will be over 600 million regular mobile coupon users worldwide. The report found that mobile coupons have compelling advantages over their paper and online antecedents and are particularly strategic for ‘bricks and mortar retailers’ in their quest to regain ground lost to online retailers during the internet revolution. A mobile coupon bridges the divide between online and physical retailing and can be individually targeted to drive foot traffic to stores. The report warns, however, that the rise in mobile coupon redemption rates will only come after an initial period of experimentation by both coupon issuers and users, during which redemption rates may actually decrease slightly. After this period redemption rates will then start to rise steadily. According to report author David Snow, “As with all new mass markets there is an initial ‘shakeout’ period. North America and

Western Europe are at this stage now. For the next few years users will be signing up to multiple coupon schemes and deciding on the ones they like best – so now is a crucial time for mobile marketing agencies to get it right on behalf of their clients and establish a loyal customer base.” The report also found that the integration of mobile coupons and mobile payment data is rare and an untapped opportunity and that redemption values will exceed $43 billion globally by 2016, driven by better targeting and mobile apps. Juniper Research provides research and analytical services to the global hi-tech communications sector. l

New World expands New World Churton Park, the first suburban New World to open in Wellington for 13 years, marks the start of the fullservice supermarket brand’s expansion into the Capital’s growing northern suburbs. The new suburbs in the hills of Wellington have a rapidly growing population that has to travel out of the area to buy groceries. Three New World supermarkets will soon serve the northern suburbs and as with all stores in the Foodstuffs cooperative, they are locally owned and operated. New World Churton Park, the 1900 square metre supermarket in the newly developed Churton Park Village on Lakewood Avenue, opened on December 6. The next to open will be New World Tawa in mid-2012. This is a redevelopment of the former Woolworths supermarket in Tawa Mall in the block between Main Road and Oxford Street. The supermarket area will be increased by one third to make a substantial 3200sqm store. Foodstuffs Wellington also owns the mall and is redeveloping it into several tenancies. The Bank of New Zealand, already a tenant, has retained its tenancy and renovated its premises. While the supermarket is being developed, the owneroperators, the Hogg family, have opened a small Tawa temporary supermarket in the mall to offer a basic range of groceries to the large catchment area of 5500 households. Neil and Robyn Hogg currently run the New World in Feilding. Son and daughter team Cameron and Nicole are running the

temporary supermarket until the new store opens. The New World Tawa free shoppers bus has also become an established sight, transporting customers to New Worlds in other areas for their wider grocery needs. The third supermarket to open will be New World Newlands, a 2000sqm store due to open in September 2012 in the shopping centre that the Wellington City Council is redeveloping on the corner of Newlands Road and Bracken Road. The shopping centre in this suburb of around 4000 households has become run down in recent years and the building of a New World is part of the revitalisation of the area. l

New World Churton Park owner-operators Steven, left, and Bruce McLauchlan. FEBRUARY 2012 FMCG

news Countdown Auckland Metro opens in CBD A new supermarket, Countdown Auckland Metro on Victoria Street, opened in January. The store has done away with car parks and traditional large trolleys in favour of providing greater convenience and choice for Aucklanders in the heart of their city. The supermarket design is a first for Auckland and will have some unique features suited to city dwellers, workers and visitors. The 2200 square metre store offers approximately 15,000 product lines, featuring an expanded range of ready-meals and snacks catering to CBD workers, including freshly made sushi, hot foods, and sandwiches made in-store. This is complemented by a large range of grocery lines at competitive prices, including the popular Select, Signature Range and Home Brand ranges, as well as Countdown’s new Macro Wholefoods Market brand. The store also features a Lotto outlet and a cafe offering barista coffee for customers to enjoy while they shop or take away. Shoppers can use the mini-trolleys or wheelie baskets to navigate the new concept store, where they will find all the departments offered in Countdown’s larger counterparts. Countdown Auckland Metro includes fresh produce, service deli, butchery and seafood departments, an extensive wine and beer range, and a bakery department offering fresh baked goods daily. Store manager Andrew Cox said that despite the central city location, the supermarket offers a wide range of fresh food options. “Whether you live or work in the city, whether you pop in daily or weekly, you’ll be able to buy just what you need,” Cox said. “Countdown Auckland Metro offers convenience and fresh food at great value.” The store will employ 65 team members and feature 14 checkouts, including eight self-service checkouts.

The new Countdown store has been carefully designed and constructed to reduce its impact on the environment, featuring a range of initiatives including an energy-efficient CO2 refrigeration plant system. Night blinds on refrigerated cabinets, sliding covers on freezers, heat reclaim off the refrigeration coils and energy-efficient lighting will also help minimise the store’s carbon footprint. Managing director of Countdown Dave Chambers said customers will be impressed with the supermarket. “It’s a first for Auckland CBD,” he said. “It has all the innovation hallmarks of the new generation Countdown supermarkets with the convenience of an inner-city location. We’re looking forward to offering our customers a unique and handy supermarket offering in the heart of the city.” The store will be open Monday through to Sunday from 7am to 10pm.l

New Countdown for Dargaville Progressive Enterprises has resource consent for a development, which will see a new supermarket built on Victoria Street in Dargaville, next door to the current Countdown store. The new generation Countdown will be more than 50% bigger than the current store, measuring 3500sqm. Countdown expects to invest up to $22 million in this development, including the purchase of the land, construction and supermarket fit-out. Kaipara Mayor Neil Tiller commented: “The current Countdown store has been here for a long time. The community needs a new supermarket, and I’m pleased to see Progressive Enterprises investing significantly in Dargaville.” The new store will feature wide aisles, self-service checkouts, 218 car parks and a Lotto outlet onsite. Progressive Enterprises also expects to employ approximately 120 people at the new supermarket (86 staff members are employed at the current store).

FMCG FEBRUARY 2012

Brett Ashley, general manager of operations for Countdown said the company was looking forward to giving the Dargaville community a state-of-the-art supermarket. “Once our new store is complete, customers will be able to shop for the freshest food in our expansive produce, meat, seafood and deli department and buy baked goods made daily in our full-service bakery.” The new store will feature a range of environmental initiatives including a CO2 refrigeration plant system that will give significant energy efficiency benefits. Night blinds on refrigerated cabinets, sliding covers on freezers and energy efficient lighting among other things will also help minimise the store’s carbon footprint. The existing Countdown supermarket will remain open throughout the construction process and will later be demolished to make way for more parking spaces. l

fgc

On the radar for 2012 A busy year lies ahead, says Katherine Rich. Predictions are a risky business. Just ask any commentator who has attempted to pick how the Black Caps or the mercurial Mr Winston Peters will perform on any given day. However, there are four broad issues the Food and Grocery Council (FGC) considers will be crucial for the FMCG sector this year. One of the new Government’s first acts will be to complete a review of last year’s Maui gas pipeline failure. That leak had a tremendous impact on a number of significant businesses – including several FGC members – and we came perilously close to seeing staple foods like bread and cereal off the shelves in Auckland. The Government’s review will concentrate on how to avoid a repeat of the problem and will also spur affected companies, particularly manufacturers, to consider how they can better deal with their current dependency on one aging gas pipeline. Overall, Ministers, government agencies and officials and the power companies dealt with the crisis relatively well. However, the delay in having specific food and drink manufacturers classified as essential services reinforced the need for the Food and Grocery Council to keep working to raise the profile of the FMCG industry with our politicians and the public. After all, we are a $15 billion industry employing nearly 150,000 New Zealanders. 2012 will see us continue and intensify that work. Shortly after the election, the Ministerial Council on Food Regulation for Australia and New Zealand considered its response to the Blewett Review on Food Labelling Policy and the Health Claims Standard. Ministers correctly rejected the headline traffic light system proposed by the review. Instead, they agreed that a universal front-of-package labelling system was needed and set an ambitious timeline for its development and introduction. Officials have been tasked to deliver a comprehensive report within six months and an agreed labelling system within one year. While we consider that to be a deeply ambitious schedule, particularly when further research will almost certainly be needed, we are prepared to work with officials to ensure there is a much broader discussion on needs, enhancements and evidence relating to labelling. This dialogue is needed before there are any significant changes which may create unnecessary compliance costs for producers. There is a reason no country in the world has yet

Katherine Rich, CEO, cracked the vexed issue of food labelNZ Food & Grocery Council. ling. Put simply, it is complicated. It is all Email: Katherine.rich@fgc.co.nz too easy to rush in with a heavy handed scheme which creates high costs for the food industry without providing meaningful information to consumers. Food labelling issues will take up a lot of the industry’s attention this year. Sadly, we will see a continuation of activist groups making hysterical claims and unfairly scapegoating local businesses. This will continue because those groups know they can raise their media profile and bring in more donations, even when their claims are thoroughly disproved. The company names will change, but the themes will remain the same. It is a very successful formula which extracts more dona-

Food labelling issues will take up a lot of the industry’s attention this year. tions out of our New Zealand than many other countries, which are the more appropriate target. Finally, Hon John Banks has been appointed as the Minister for Regulatory Review. The Council congratulates him on his appointment and will look to work with him to help reduce the red tape and compliance which currently occupies too much of our members’ time. John is a successful businessman and he knows from his own experience how businesses need to be freed up to become more productive to ensure a strong future for the industry and the people who work in it. It certainly looks like another busy year.

w w w. f g c . o r g . n z FEBRUARY 2012 FMCG

n a rgo n

Trends to watch in 2012 Trina Snow’s predictions for the industry. Trina Snow, executive director, NARGON.

The holidays are traditionally a time for reflection on the year which has passed and to think about what the new year might have in store. NARGON has compiled six key trends to watch in 2012.

A continued focus on value Since commerce began, shoppers have always loved getting a great deal. In these tight economic times we are seeing increasing numbers of “deal-driven consumers”. They want deals and discounts, have very high expectations and are prepared to shop around. Industry commentators have noted a change in attitudes towards bargain-hunting. While it was once a sign that a shopper had financial issues, now it is accepted and often admired. It is more than just savings – it can make shoppers feel in control and smarter when they can make their money go further. Increasing use of Smart Phones National Retail Federation research from the United States showed that more than half of Smart Phone owners and 70% of tablet owners planned to use their devices to aid their holiday shopping. This behaviour is expected to expand into the retail grocery sector with Smart Phones capable of providing more detailed nutritional information, telling the stories behind products, listing the details regarding origin and ingredients, enabling instant price comparisons, listing reviews and running competitions. Many are picking that 2012 will be the breakthrough year for QR codes (the pixilated images appearing on a growing number of products and marketing materials). These were prominent during the World Cup and have tremendous potential to directly engage tech-savvy customers. Social media is no longer optional Supermarkets may not be able to avoid Facebook,Twitter and blogs for much longer. These tools are becoming increasingly important for many consumers who have different expectations to shoppers in the past.

FMCG FEBRUARY 2012

Social media expert Rachel Goodchild has told business audiences that people will be talking about you online and it is best you have a presence there in order to control the situation and promote your store. Social media is another way to reach out to customers directly and make them feel exclusive. Kiwis will decide about self-service checkouts While self-service checkouts are popping up in New Zealand supermarkets, several chains in America and Britain are dropping them saying they can actually slow down the checkout process. The main reasons cited for removing the self-service checkouts are customers struggling with bar codes, coupons and payment methods, as well as the possibility of shoppers accidentally or deliberately not paying for items. In the United States, 22% of supermarket purchases were done through self-service counters in 2008.This year, that figure was down to 16%. It will be interesting to monitor how Kiwi shoppers react. They appear more adept with eftpos and scanners than their counterparts in the US and UK. Supermarkets are expected to continue to offer a choice by running both self service and staffed counters for the foreseeable future. Environmentally and ethically aware shoppers The ‘aware shopper’ is a new type of customer who wants convenience, value, quality, ethical production and environmental sustainability. They will often require more information about the origin of products and will place an emphasis on welfare standards and the environment. While this list of demands may be difficult to cater for at times, these are generally high-value shoppers and there will be more of them in 2012. More restrictions on sales and displays Somewhat ironically for a centre-right Government, this next term of Parliament is likely to see increased restrictions on the sale and display of products such as tobacco and alcohol.A complete ban on tobacco displays comes into force in mid-July and supermarkets are unlikely to be exempted. There will also be increased enforcement measures. While Parliament is yet to make final decisions on alcohol, it is likely that there will be a split purchase age (20 for off-licence), restrictions on liquor trading hours and potentially a requirement that alcohol be isolated to a corner of a shop. Supermarkets will need to be prepared for all these changes and ensure they comply at all times.

What’s online

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

TNS DIGITAL LIFE STUDY New research highlights the ramifications of social media and online retail for the FMCG industry. We bring you the findings on fmcg.co.nz.

FINANCE MATTERS Monitor and measure how well your company is managing its resources. Kevin Vincent shares his expert advice on fmcg.co.nz.

New Products

THE FUTURE OF RETAILING IN NZ Crossmark New Zealand MD Grant Leach shares his predictions for the new year online.

LOOK BACK TO MOVE FORWARD

From Vogel’s Luxury Blend muesli range to contemporary new look packaging for Brancott Estate wines – take a sneak peek at some the latest launches online.

PL US

You can make a commitment to high standards in 2012. Award-winning speaker and author Hannah Samuel explains on fmcg.co.nz.

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

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

IN ITS PRIME Mangoes and pomegranates from offshore. Local stone fruit are at their very best and most economic. New season kumara, garlic, shallots and beans. New Zealand tomatoes, capsicums and courgettes are at their peak. Snapper, trevally and gurnard are available in abundance.

SHOT TO BITS Asparagus and artichokes. NZ citrus. Red currants and gooseberries. Leeks often lack quality.

POULTRY Excess turkey cuts are a very economical option at present with the hangover from the Christmas rush.

SEAFOOD These mid summer months are supposedly the best time for inshore fish species. The snapper season is in full swing with plenty in the markets though I always feel the price is a bit steep. It is the same for gurnard and sole, plenty around but the price is up there. The unusual summer weather so far has not helped the smaller inshore fishermen and perhaps this is responsible for the price and the somewhat inconsistent supply, but hopefully the windy wet weather will abate over the next couple of months. However, it is not all doom and gloom on the price front; kahawai, trevally, mullet and flounder are greatly underrated inshore fish in plentiful supply at present and relatively inexpensive. Terakihi is a medium textured fish with very good white colour at its best and most numerous in summer/ autumn, so now is the time for this fish. Kingfish is one of our best fish, but supply is often tight as there is never enough quota. However, this month supply is at its peak and prices will be reasonable. Fresh Pacific oysters are not at their best this month but then on the other hand our endemic greenshell mussels are fat at this time of year, inexpensive and great for consumers to throw on the BBQ, so well worth the effort to have these live shellfish on hand.

MEAT So far the usual dreaded summer drought has not eventuated and feed is plentiful. Beef With plenty of feed this year many

FMCG FEBRUARY 2012

farmers may try to hold stock longer, however this is unlikely to overly affect local trade contract supply as these cattle must be within a specific weight range. The trend is steady but prices are up about 10% on last year. Sheepmeat Lamb schedule prices appear to have bottomed out early this season in response to recent rains and lack of numbers. The trend is falling from the massive $8 + per kg in October/ November, but at $7.60 ish per kg, (at time of writing) for a 13-22kg lamb this is still way, way up on last year’s prices. Cervena/farmed venison As with lamb, since the highs in early October the price trend has been falling, however this looks to have bottomed out at around $8 per kg and the price should stay at this level (or only slightly increase over the next couple of months). These prices make venison a reasonable option when compared with lamb. Now is a good time to reintroduce your customers to this product.

FRUIT This is the fruity time of the year what with all the berries, melons, and stonefruit in abundance. Stonefruit The so called ‘summer fruit’ – plums, apricots, peaches and nectarines – are the best buys this month and there are still some good cherries around though these will tail off this month. Apples The first early new season Kiwi-grown apples and pears have arrived in the market and these will be followed shortly by the main

season varieties. Kiwifruit are around but the golds are likely to be in shorter supply this summer. Avocados This seasonâ&#x20AC;&#x2122;s Hass and Hayes (pebbly skinned varieties) are everywhere. These are our best avocados but can be of variable quality, though well priced at present. The first of the round, green Reed variety have arrived in the markets. Berries Fresh raspberries are well priced but will get more expensive next month and will be pretty well finished by April. Look also to blueberries through to mid March, with blackberries about to hit the markets and loganberries are always around. The very short season for gooseberries and blackcurrants is almost over. Melons All varieties of New Zealand grown melon, Prince, Water, Rock and Honeydew are now here in numbers. Grapes There are very few New Zealand grown grapes around, hard to find but they are the best flavoured. Mangoes From offshore mangoes are the best buying and of very good quality, also the bananas in the marketplace at present are top quality with good supply of organic fruit coming in. Pomegranates from California have been around since the beginning of summer and more consumers have cottoned on to this amazing fruit.

VEGETABLES This is also a great time for New Zealand produced vegetables with all the traditional summer varieties in full swing. Courgettes are in great supply, so expect the price in the markets to come back from the recent highs. It is the same for capsicums and aubergines with good supplies now coming through. Tomato supply is at its peak with a reasonable quantity of fully ripened fruit and a decent selection of varieties available. There are even a few of the outdoor grown fruit available for those with a penchant for a more rustic type of tomato. Beans All the locally grown beans are now also available including the round â&#x20AC;&#x2DC;Frenchâ&#x20AC;&#x2122; style, flatter Mangere pole and I have even seen a few runners coming in. Beetroot is most plentiful from November until April. Broccoli supply and quality has improved and is very good buying at present. Fresh sweet corn is arriving in bulk this month and the cost will only get better as summer progresses. Salad greens All the annual herbs are in full swing with salad leaves and rocket in abundance. Potatoes and kumara All the varieties of good quality new season kumara; Beauregard (orange, softer,

sweet), Tokatoka, (yellow, firm, good flavoured), Owairaka and Northern Rose, (traditional red, very firm), are arriving. There are lots of good quality new crop potatoes all over the place and plenty of variety too. There is also a reasonable supply of the so called â&#x20AC;&#x2DC;Maoriâ&#x20AC;&#x2122; potatoes coming through. These traditional varieties are becoming more and more popular with discerning consumers and well worth carrying. Pumpkins Buttercup and a few of the early pumpkin varieties are in the markets. Onions and leeks New Zealand red onions are back but leeks are not at their best this month. However, baby leeks are available and a good substitute. New Zealand garlic and shallots are available again, though pricey. Sadly, the globe artichoke and asparagus seasons are about finished for another year.

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FEBRUARY 2012 FMCG

Q&A

Healthy eating from the ground up A New Zealand-owned family business with a difference has grown into an exciting company that supplies unique baked goods nationwide and exports to international markets. FMCG talked to co-owners Phil and Tim Grainger about the philosophy behind Venerdi Ltd.

Phil Grainger.

he Venerdi story starts with Phil Grainger’s father. As a farmer, he watched his herd of dairy cows develop a range of common ailments that were simply considered an accepted by-product of their diet. Determined to find healthier alternatives for his herd, he went right back to the earth – literally. By ensuring that his pasture grew from healthy soil with all the essential naturally occurring minerals, he eliminated the health problems in his herd. This proved to him that even for dairy cows, you are what you eat, 16

FMCG february 2012

and that healthy soil was the key to nutritious food. “So this is how Venerdi started and people have been getting on board with these ideas for a while now,” says Tim. “As we have grown we have listened to our customers and developed more and more products such as pizza bases and burger buns. These have seen Venerdi venture into the mainstream market developing some great relationships with food businesses, expanding our markets and our expertise. We are now a large supplier of gluten free pizza bases, in both NZ and Australia. “Our latest achievement, also driven by customer demand, is a genuine gluten free sandwich loaf. We have launched a brand called Gluten Freedom which has the ability to deliver a range of sandwich breads and small goods perfect for picnics and other fun occasions. R & D is a big part of what we do at Venerdi and it keeps us looking forward to exciting times.” Which brands do you have in NZ supermarkets? Venerdi the organic gluten-free brand with a range of breads, pizza bases and baps has established itself as a consistent seller with a strong following.Venerdi uses organic ingredients to provide customers with the best nutrition available. This range

addresses many allergens by avoiding gluten, dairy, soy and nuts in its ingredients.Venerdi has been in supermarkets for nine years and continues to satisfy customers with great tasting products. Have you launched any new products in the last 12 months? Gluten Freedom is a soft loaf of gluten free bread – it is great for sandwiches, toasting, and freezing and it comes in white and brown. This bread has been developed for its texture and flavour and we have had amazing feedback on both. The range also addresses many allergy issues including gluten, dairy, soy and nuts. By avoiding these we are satisfying a much greater segment of the allergy friendly market than most gluten free alternatives. The retail price of this bread is also a huge opportunity for both supermarkets and consumers, at $5.99. How have the new products progressed? The ‘Gluten Freedom’ range of ‘White’ and ‘Brown’ is available now. Some stores jumped at the chance to stock this product before Christmas and we are seeing it demands immediate sales. At a good price and with the benefit of being gluten, dairy and soy free we expect the Gluten Freedom bread and buns will do

well in store. Supported in store by Saleslink Australasia we hope to see this product get out to our customers over the next few months. Are you planning to launch any new products in the next few months? Yes! Gluten Freedom is a great bread recipe so we want to follow this up with a bun for people to enjoy. This new range is going to sit well on the shelves offering great tasting breads, perfect for sandwiches, and buns, but we won’t stop there. We are still thinking about more new products and want to hear from those of you with requests. What are the consumer trends in this category? The category is growing at a very strong rate. Aztec figures showed a 30+% growth in the last quarter with

the launch of the Goodman Fielder brand.Venerdi sees price as an important element in this market as many consumers can not bring themselves to pay $8 for a loaf of bread. Another important element is a sandwich loaf for kids to take to school – they want to feel like everyone else, with bread that tastes like everybody else’s. This is where ‘Gluten Freedom’ fits. We see there is still a strong demand for health and good nutrition as Venerdi Organic breads are continuing to sell well. We are also finding strong demand for small goods as people adapt their lives to a gluten free diet. Gluten Freedom will add to a gluten free market in NZ that is very innovative and has a better range and quality of breads than any other country I have visited. New Zealanders are lucky to have such understanding retailers and keen innovation. February 2012 FMCG

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Bread still rising Healthy loaves and gluten free variants are more popular than ever. FMCG looks at new developments and category drivers in the bread aisle.

readcraft is one of New Zealand’s leading family bakeries, established in 1942 and now in its third generation of Cockburn ownership. The bakery prides itself on reacting quickly to changing consumer needs and has a reputation for pioneering some of the country’s leading new bakery technologies and products. “Little is known about this privately owned company because most of the products we craft are made under contract for some of NZ and Australia’s leading bakery brands and QSR (Quick Service Restaurant) chains,” says marketing manager Lucy Cruickshank. She adds: “In supermarkets, Cottage Lane Authentic Artisan Bread is our own brand and it is currently available in most Four Square, Pak’n Save and New World outlets. This crusty, natural, preservative-free range of European style bread includes ciabatta, pugliese, sourdough, garlic, cheese, grain, olive and rustic baguettes. “Cockburn’s Celebration and Christmas Cake range is made of high quality ingredients using traditional family recipes and sold in selected Foodstuffs outlets – these

FMCG FEBRUARY 2012

decadent treats are highly respected by those who have tried them.” Cruickshank explains: “We are constantly launching new products alongside partner companies that we contract manufacture for. Some are a roaring success and others take slightly longer to reach full potential in this market category. “More of our consumers are demanding quality product, without preservatives and additives that offer good value for money.”

Goodman Fielder Marketing manager Nicola Ellish and category development manager Sue Wheeler told FMCG that the Goodman Fielder portfolio of iconic Kiwi brands continues to lead the bread market in New Zealand. They say the brands, including Nature’s Fresh, Molenberg, Freya’s, Vogel’s and MacKenzie, are market leaders within their respective segments. Two of the brands, Nature’s Fresh and Molenberg, had packaging refreshes in 2011. The new pack designs are not only brand distinctive and eye catching in store, but also allow easier variant navigation for shoppers. “Strong sales performances, in

bread THE BREAKDOWN Current MAT to 01 January 2012

Third generation family baker – John Cockburn (Cottage Lane by Breadcraft director) delivers fresh baguettes in his vintage Cottage Lane truck.

Cottage Lane Authentic Artisan Bread platter with Pesto, Salmon and Cucumber dips.

conjunction with the refresh of both Nature’s Fresh and Molenberg in the second half of 2011, have contributed to the Goodman Fielder growth in market share of 2.1% vs prior year (Aztec MAT Value share to 11/12/2011),” say Ellish and Wheeler. Goodman Fielder launched a range of gluten free breads under the Vogel’s brand, in September 2011. Vogel’s Gluten Free offers

consumers, who are gluten intolerant or who make a lifestyle choice to not consume products with wheat, the opportunity to purchase a product that tastes and feels soft, just like ‘normal’ bread. Ellish and Wheeler explain: “Vogel’s Gluten Free bread rose to be the number one brand in this market segment within just eight weeks of launch (currently with a 46% share) and has driven incremental value

Total Bread: $501.562m Value % Chg vs YA 2.4 Total White Bread: $123.310m Value % Chg vs YA 3.0 Total Light Grain: $131.258m Value % Chg vs YA 4.9 Total Meal: $58.989m Value % Chg vs YA -1.4 Total Heavy Health: $59.690m Value % Chg vs YA 8.3 Total Plain Buns & Rolls: $25.881m Value % Chg vs YA -3.9 Total Other Specialty: $25.693m Value % Chg vs YA 1.0 Total Crumpets: $11.691m Value % Chg vs YA 12.0 Total Muffins: $12.907m Value % Chg vs YA 1.0 Total Pita: $11.887m Value % Chg vs YA 6.1 Total Easter Buns: $8.202m Value % Chg vs YA 1.2 Total Buttered Bread: $9.460m Value % Chg vs YA 0.7 Total Fruit: $6.224m Value % Chg vs YA -14.7 Total Bagels: $5.570m Value % Chg vs YA -5.2 Total Pikelets: $2.885m Value % Chg vs YA -13.9 Total Par-Baked: $3.270m Value % Chg vs YA -13.8 Total Indian Bread: $2.332m Value % Chg vs YA -3.1 Total Sweet Buns & Rolls: $1.832m Value % Chg vs YA -23.0 Total Other Flavour: $294,644 Value % Chg vs YA -13.5 Total Garlic: $136,060 Value % Chg vs YA -22.4 Total Other: $49,681 Value % Chg vs YA -51.9 * Nielsen New Zealand ScanTrack (Databank)

FEBRUARY 2012 FMCG

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growth within the category of 61% vs prior year.The new Vogel’s Gluten Free range received accolades at the New Zealand Food Awards (in association with Massey University), where Goodman Fielder was presented with the 2011 AJ Park Research & Development award for outstanding achievement and excellence in food innovation.” With increased diagnosis and public awareness in New Zealand of gluten intolerance and Coeliac disease, Goodman Fielder has recognised the need in this area for ‘good tasting’ gluten free baked products, and is committed to ongoing development in this area.

ABE’S Real Bagels Megan Sargent, sales director, ABE’S Real Bagels Ltd told FMCG: “We launched a Rugby Ball Bagel in time for a certain tournament last year, which created interest in the bagel segment of the small goods category. The Rugby Ball Bagel was a bit of fun for us and for a limited time only, finishing at the end of October. Reaction from consumers was interesting, ranging from,‘These are great, the filling doesn’t drop through the

hole!’ to ‘If it hasn’t got a hole, it’s not a real bagel’. For the record, these were made in the traditional bagel method, the dough was aged overnight and the bagels steam-baked to give that authentic chewy bagel texture. We do have plans for some innovation in the fresh bagel category for 2012 – watch this space.” And what are the consumer trends in this category? Sargent says: “Despite the misinformed still believing that carbs are bad for you (Dr Atkins was obese when he died, which illustrates that avoiding carbs isn’t an effective long term strategy), consumers still love our bagels. ‘Everyday indulgence’ is a rising trend which encompasses those consumers who love their daily bagel treat, and don’t like to do without it.”

Sargent adds: “In other product news, we recently revamped the ABE’S Bagel Crisps range, with new product formulation, three new flavours and innovative packaging which allowed us to drop the retail price by more than $1 – you don’t see that very often these days. Consumers are responding accordingly, with Caramelised Onion & Balsamic Vinegar sales rivalling Roasted Garlic in its first week on shelf.”

Bakeworks Business director Kirsten Unger says: “The past year for Bakeworks has been our best year yet. We launched new bread packaging at the beginning of the year and it’s really created brand awareness and helped our product stand out on the shelf.

Cottage Lane Authentic Artisan Bread is crafted in the Wairarapa by 3rd generation family bakers Breadcraft. Baked in a sophisticated European stone oven, Cottage Lane is healthy and natural with no preservatives or additives. www.cottagelanenz.co.nz 20

FMCG FEBRUARY 2012

Cottage-Lane

@CottageLaneNZ

“More of our consumers are demanding quality product, without preservatives and additives that offer good value for money.” Breadcraft marketing manager Lucy Cruickshank Our Liberte gluten free bread range is available in most supermarkets throughout New Zealand, including recently, South Island stores. Overall our gluten free bread sales from October 2010 to October 2011 grew a staggering 81% (Aztec Reports). While 2011 has seen fantastic growth for Bakeworks, it has also seen the market as a whole grow and the entry of much larger competitors. At Bakeworks we love a bit of competition and we are set to launch some exciting new products in 2012! “Our gluten free cookies and breadcrumbs are in selected stores but we hope to have these ranged through supermarkets in 2012.” Before Christmas, the Bakeworks team was going flat out in the kitchen baking a festive range, “which of course is all gluten free and tastes exceptional”, says Unger. “This is a category we will be working on growing in 2012,” she adds. Another highlight for Bakeworks was winning the Excellence in Manufacturing award at the Westpac Auckland West Business awards. “It was great recognition for all our hard work. As part of the prize pack, we are thrilled to receive mentoring from the team at Tasti Products. This is a brilliant opportunity to learn from the best and gain new ideas and knowledge in different areas,” says Unger.

White

fresh sandwich loaf

GLUTEN FREEDOM

Picnic perfect bread... ready when you are!

Gluten,Dairy,Soy FREE For more information please visit

www.glutenfreedom.co.nz FEBRUARY 2012 FMCG

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Pane Toscano Hansells Food Group’s range of Pane Toscano breads offers a level of authenticity that is in growing demand by the NZ bread market, says Rachael Bryers, contract senior brand manager. Offering traditional breads baked in Italy, New Zealand consumers can serve the Pane Toscano breads with pride.

FMCG FEBRUARY 2012

Pane Toscano’s strategy to drive authenticity into the specialty bread market is being well received by retailers. Authenticity and quality have always been the focus for Pane Toscano, reflecting the adventurous and passionate nature of the countries they come from. Consumers enjoy being able to “finish” off the breads by baking for a few minutes or adding their favourite toppings, and the Ciabatta loaf and Pizza Bruschettina continue to be the most popular products in the range. “This year Pane Toscano will undergo a relaunch to drive sales volume and develop the range,” says Bryers. She explains: “We’ll be rationalising the current range as well as launching some exciting new products. The range will be relaunched under the brand name ‘Toscano’, which allows us to extend the brand offering to include authentic products from other European countries. “Distribution methods will be reviewed and packaging artwork will be redesigned for maximum on-shelf presence,” says Bryers. “The new range will be supported with advertising and in-store demonstrations, driving trial and awareness as well as educating consumers about the different uses of the Pane Toscano products,” she says.

Giannis ethnic breads While the overall flat bread market is static, the same cannot be said for the sales of Giannis ethnic breads. Colin Prebble is Lamajou’s national sales manager and he credits the growing popularity of Giannis to a renewed interest in authentic ‘native foods’. “Giannis Michaelides, the Greek Cypriot founder of Giannis, always believed these original flatbreads, (found all over the world), would become favourites once people discovered just how good they were. I guess he didn’t think it would take 20 years though,” laughs Prebble. Giannis are releasing new packs and new labels as a part of its twentyyear birthday celebrations. “This is more than just a birthday present,” said Prebble. “We are focusing on ‘new’ breads that are perceived to be healthier, such as the Lebanese Bread, Wholemeal Pita and the Crispy Pizza. Not only are the origins of these breads attracting attention, but also our ‘longlife’ gas flush ‘snack-packs’ provide convenience, freshness and smaller portion options. Professional couples and smaller families are snapping them up. As lifestyles change we will change but what remains unchanged, are the authentic recipes.”

New treats in store A snapshot of sweet innovations and popular products for Easter.

Queen anne Queen Anne chocolate confectionery was first established by Sarah Adam’s grandfather, Ernest, in the 1920s and re-launched 70 years later with the same popular recipes including marshmallow. The most recent addition to the Queen Anne Marshmallow Easter offering is the smaller portion 200g range; in Dark Chocolate Marshmallow, Milk Chocolate Marshmallow and Dark Chocolate Mint flavoured Marshmallow Eggs. These are positioned to complement the original 400g range of boxed Milk & Dark Chocolate Marshmallow Eggs. Qualitative consumer research undertaken by Queen Anne Indulgence, as part of its development strategy, identified the brand as reflecting traditional values in a modern world. The Queen Anne Easter range is gluten free and features dark chocolate options in line with current consumer trends. The ongoing popularity of Queen Anne Marshmallow Eggs reflects

increasing consumer support for New Zealand made confectionery. A significant development for the company is the first manufacture of marshmallow for Easter 2012 in its Christchurch premises. The specialty confectionery manufacturing plant was set up mid 2011, despite significant challenges due to the Christchurch earthquakes. “We are very happy with the quality and consistency of our new manufacturing systems,” Adams says. The change to in-house manufacturing of Queen Anne products will enable the company to undertake a significant new product development programme in 2012. For more information phone 0800 783 362 or visit queenanne.co.nz.

is fast becoming an iconic product in New Zealand at Easter. This year Lindt will have Gold Bunnies available from 10 grams right through to a handmade 1kg Gold Bunny in the market place. The 100g Gold Bunny will be available in milk, dark and white, and still remains as the core product for Lindt at Easter along with the 200g Gold Bunny. Lindt also has some fabulous new innovative ‘Pouch Bags’ available for Easter 2012, including ‘Mini Chicks’ and ‘Mini Carrots’ which will drive further growth within the Easter category, with highly appealing packaging and available in exquisitely smooth melting milk chocolate.

Lindt Chocolate Lindt Chocolate continues to grow ahead of the market in New Zealand. Lindt Easter is adding value and profitability to the Easter category, as consumers continue to trade up to premium chocolate. The Lindt Gold Bunny FEBRUARY 2012 FMCG

The value of the Tick This endorsement goes beyond a ‘Front of Pack Label’, explains the Heart Foundation’s Libby Garnett.

H E A LT FOOD

FMCG FEBRUARY 2012

he Heart Foundation Tick Programme was established in 1996 and is the longest standing and most recognised voluntary front-of-pack food-labelling programme in New Zealand. The Tick provides an independent, reliable endorsement for consumers and in today’s competitive environment where supermarket aisles are filled with an array of colours, brands and imagery, it provides reassuring consistency. However the Tick is much more than just a recognised and trusted front-of-pack label for consumers. The main goal of the Tick is to improve the nutrition profile of New Zealand’s food supply in accordance with the nutritional policies set by the Ministry of Health, through reducing saturated fat, sodium and energy and increasing positive nutrients such as fibre and calcium. Libby Garnett says: “Our licensees on the Tick programme are as committed as we are to improving the nutritional profile of New Zealand’s food supply. Currently there are 59 licensees ranging from large multinational companies right through to

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small businesses. One small business success story with the Tick is 100% Nutz. Since becoming a licensee on the Tick programme in 2010 they have taken up every opportunity to engage with us in resource production as well as events such as the 2010 NZ Food Awards where they won the Healthy Choice category award.” Paul Jolly, 100% Nutz company director, says: “The Tick is more than just a symbol. There’s a team of people behind it, promoting it and supporting users like me to create brand awareness. The Tick offers opportunities for us to market and educate consumers on our product. It has added massive value to our brand. Consumers shop by recognition of the Tick, which has really helped us grow our business.” Garnett explains: “The Tick team has a collaborative working relationship with licensees and their contribution to the programme is valuable. We actively engage with our licensees through resource development, Tick Talk e-newsletter, and Facebook, as well as at special events such as the Auckland Food

Show.We also work closely with our licensees and other manufacturers in setting our Tick nutrient criteria. A positive working relationship with our licensees, as well as food manufacturers enables nutrient targets to continuously be improved whilst ensuring they are achievable. This ensures our aim to improve the nutrient profile of New Zealand’s food supply is realistic for our licensees in addition to providing health benefits to consumers.”

Over 1100 products carry the Tick Garnett explains: “The Tick is proud to have 58 food and beverage categories with over 1100 products on the programme and we are continually growing our range. Foodstuffs currently have over 120 of their Pams product range labelled with the Tick and are expanding their Pams Fresh Express range, which includes their Fresh produce range.” Nadia Shepherd, brand manager for Foodstuffs Own Brands, says: “We have been displaying the Tick for a number of years on our products, as the device is highly

recognised by our consumers. We strongly believe it adds value to our products, indicating the benefits associated with them.” Garnett says: “Our Tick Club has a strong following of over 30,000 members who are committed to making healthier choices within their lives. We send regular communications to our members via our Tick Talk e-newsletter, which features our latest Tick products, recipes, resources and nutrition articles from our Tick dietician, 7LFN XLGH Rebecca McLean. The Tick QJ * SSL 6KR Talk e-newsletter is also a fantastic opportunity where licensees can promote their brand as well as educate consumers on their product range.” -XO\

Free resources Tick resources are available free of charge to consumers and health professionals via the Heart Foundation website heartfoundation.org.nz. Garnett explains: “Currently we produce two resources: the Tick Recipe Guide and the Tick Shopping Guide. The Tick

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FEBRUARY 2012 FMCG

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“We have been displaying the Tick for a number of years on our products, as the device is highly recognised by our consumers. We strongly believe it adds value to our products, indicating the benefits associated with them.” Nadia Shepherd, brand manager for Foodstuffs Own Brands Recipe Guide is produced twice a year, with summer and winter editions. It provides a great opportunity for our licensees to showcase their recipes and promote their brands in the publication. In 2011 we printed over 45,000 copies of the Tick Recipe Guide for consumers to make healthier meals for themselves and their family. Our latest Tick Recipe Guide ‘Summer Selections’ showcases a great range of summer salads, BBQ and dessert ideas complete with cost per serve and nutrient informa-

Did you know… The Heart Foundation’s annual appeal is planned for 13-19 February 2012.

FMCG FEBRUARY 2012

tion (recipe images on pg 25-26 are from this edition).The Tick Shopping Guide is another useful resource and lists all of our Tick products which are available in the supermarket.The Tick Shopping Guide is updated twice a year with new Tick products.” Garnett adds: “A recent survey conducted in December 2011 showed that over 60% of our Tick Club members who engage with our resources find them useful.” Feedback from members included: “The Tick Shopping Guide is an

excellent and informative resource”; “I trust the products that are listed”; “All recipes [in the Tick Recipe Guide] are wonderful and I try to make as many as I can”. The Heart Foundation Tick programme is committed to fostering and developing new licensee relationships to ensure improvements in the nutritional profile of New Zealand’s food supply are continually developed. To find out how to become a licensee contact the Tick team on (09) 526 0895.

Libby Garnett is the marketing coordinator for the Heart Foundation Tick Programme. Libby is also studying towards a Post Graduate Diploma in Human Nutrition with Massey University. Email Libbyg@heartfoundation.org.nz

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Salad Time

Summer is peak time for fresh salads and dressings sales as consumers search for light and healthy meal solutions. FMCG talked to some of the key suppliers in these categories.

nap Fresh Foods has been helping New Zealanders reach their 5+ A Day for over 25 years, by continuously delivering healthy, fresh, innovative products to the New Zealand market. Snap Fresh Foods is a carboNZero certified organisation, and is firmly committed to sustainable farming, production and distribution methods. In supermarkets, Snap Fresh Foods currently ranges Krispkut Salads and Fresh Dressings, Sproutman, Dashboard Diner and Farmer Bills Baby Carrots. Sales and marketing manager Stephen Twinn says,“We re-launched our range of Krispkut Dressings, which includes three ‘gourmet’ variants: Japanese Style Vinaigrette, Japanese Sesame Dressing, and Hempseed & Honey Vinaigrette. We have 10 dressings in total, each with a vibrant taste, and free of artificial colours, flavours and preservatives.” He adds: “We also launched a Seasonal Winter Salad Mix (May to October) under Krispkut, that contains red and green spinach and baby cavolo nero. Cavolo nero is considered a “super food” and when combined with spinach delivers a high

FMCG FEBRUARY 2012

anti-oxidant mix and is a good source of vitamins A and K.Winter Salad can be eaten hot or cold. For summer we have just released Krispkut Classic Kiwi Mix of iceberg, cos, shredded beetroot and carrot ... a retro feel with a modern twist.” Twinn says the Winter Salad performed very well and the initial uptake for the Classic Kiwi Mix has been very positive. He adds: “We are currently looking at potential new products and salad mixes that are inspirational in building the base for an amazing salad and deliver fresh, ethical, convenient options. “The biggest growth area is in spinach as customers look for healthy and versatile ingredients to add to their shopping basket. Customers are also demanding fresh, New Zealand grown products. Snap Fresh Food’s products are grown in our North and South Island farms, harvested daily and aim to go to market within 24 hours.”

Salad Dressings Dressings are a flavour-driven market. Mayonnaise continues to drive growth in the Dressings category and in New Zealand supermarkets, Heinz

s alad s THE BREAKDOWN Current MAT to 01 January 2012 Total Salad Dressings & Vinegar: $63.946m Value % Chg vs YA 2.9 Total Mayonnaise: $31.914m Value % Chg vs YA 5.6 Total Pourable Dressings: $14.667m Value % Chg vs YA -0.0 Total Vinegar: $10.340m Value % Chg vs YA 2.2 Total Other Salad Dressings: $6.738m Value % Chg vs YA -1.4 Total Dry Salad Dressing Mixes: $287,057 Value % Chg vs YA -2.3

Wattie’s leads the Dressings category*, says Melanie Taylor, senior product manager Dressings & Table Sauces (*Nielsen, Total Dressings Val. & Vol. MAT to 6th November 2011). Heinz Wattie’s dressings include Eta; Eta Gourmet; Heinz; Heinz Seriously Good and the Weight Watchers range. Among new launches in the last 12 months are: • Eta Caramelised Onion Dressing 250ml • Eta Greek-style Feta with Oregano Dressing 250ml • Heinz Seriously Good Aioli 295ml (available in an Upside Down Squeezy bottle) • Heinz Seriously Good Tartare

295ml (available in an Upside Down Squeezy bottle). These new dressings have been performing well since launch in August/September 2011, says Taylor. She explains:“As the dressings market is so flavour-driven, it is important that new variants are launched on a regular basis to keep consumers engaged with the category. Eta strives to keep abreast of international and New Zealand flavour trends. “The new Heinz Seriously Good Aioli and Tartare have been a welcome addition to the successful Mayonnaise and Pasta Sauce ranges, taste seriously good and are set to contribute to market growth.”

Total Fresh Fruit & Vegetables (Packaged): $505.130m Value % Chg vs YA 3.0 Total Fresh Vegetables: $272.511m Value % Chg vs YA 2.6 Total Fresh Fruit: $142.587m Value % Chg vs YA 4.5 Total Prepacked Salads: $72.947m Value % Chg vs YA 1.0 Total Fresh Herbs: $11.865m Value % Chg vs YA 9.3 Total Fresh Sprouts: $5.219m Value % Chg vs YA 5.4 * Nielsen New Zealand ScanTrack (Databank)

The best way to turn a simple salad into something extra special is with an exquisite dressing that is simply bursting with flavour! Using only the finest ingredients, Krispkut™ dressings use no preservatives, emulsifiers or artificial flavours. Each dressing is created to complement a Krispkut™ salad, and is easily matched by colour code. Healthy eating is just too easy! Available from Countdown supermarkets in the chilled produce section.

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Baby Care essentials FMCG talked to some of the suppliers in this substantial category about innovations and consumer trends. dollar growth % YA, total key accounts)”, says Greaves.

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eather Greaves, marketing manager baby care, says Treasures is a premium nappy brand based locally in New Zealand, offering both standard nappies and nappy pants. In the last 12 months Treasures launched its limited edition rugby prints (a licensed promotion in conjunction with the NZRU, timely in the lead-up to the Rugby World Cup). Greaves comments: “We were extremely pleased with the results from the limited edition campaign. Kiwi families really got behind the All Blacks and it was great to see them showing their support from the bottom up.” New Treasures Jumbo box designs were also introduced. They are made using food-safe inks and creatively transform into playboxes. Popular with parents and toddlers alike, the new oven, boat and castle designs have been well received. 30

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New/improved Treasures nappy pants were also launched in 2011.The introduction of the Junior sku now completes the range, which caters for active toddlers 6kg-16kg+. Greaves says: “When Treasures first launched their range the total nappy pants market stood at 1.6% dollar share of the total diaper category MAT to 12/9/2011. Treasures successfully helped grow this segment to a 7.0% dollar share MAT to 27/11/2011 (Aztec dollar share, total key accounts).” While 2012 new product developments are under wraps, Treasures are happy to announce a new initiative in Q1 with four free nappies being added to the bulk packs. “Consumers are trending towards the purchase of nappies in bulk. Over the past 12 months total Bulk and total Jumbo have increased in share by 17.1% and 4.6% respectively (Aztec MAT to 27/11/11

In the Baby Care category, ecostore supplies baby body wash, baby shampoo, baby moisturiser, baby sleepytime bath, baby bubble bath, baby soap and baby nappy balm. ecostore’s healthier plant and mineral based range for babies includes bath time products such as its creamy goats milk baby soap, gentle lavender and geranium shampoo, body wash and sleepytime bath infusion, as well as its much loved lavender and geranium bubble bath. Its everyday baby care products include a nourishing moisturiser enriched with cocoa and shea nut butters as well as a protective nappy balm with native Horopito extract. The baby care range has been formulated for ecostore by award winning scientist Sir Ray Avery, who brings more than 30 years experience in pharmacology to the research and development team. Each product in ecostore’s baby care range has been carefully formulated to match the oils and amino acids naturally found in babies’ skin, providing gentle cleansing, nourishment and protection, without removing the oils naturally present in the skin. Pania Newman, marketing executive, told FMCG: “Babies and young children are more vulnerable

baby care THE BREAKDOWN Current MAT to 01 January 2012

to the potentially harmful effects of the chemicals used in baby products as their skin is thinner than an adult’s and the naturally protective barrier coating the skin is not fully developed. It’s important to help them get the best start in life by caring for them with safer and healthier plant and mineral based products that are free of the potentially harmful chemicals sometimes found in baby care products such as propylene glycol, sodium laureth sulphate, mineral oil and synthetic perfumes and dyes.”

Jackel NZ General manager David Rae told FMCG: “Jackel NZ Limited is market leader in the baby accessories segment with 54.2% value share* under the Tommee Tippee brand. “Total Baby Accessories is worth $7.8m*, with the total market flat with -0.5% decline year on year, reflecting a slight decrease in births over the past year. “Tommee Tippee offers quality products in all major segments, namely Bottles and Teats, Feeding, Health & Grooming, Comforters, Teethers and Bath & Play. Bottles and Teats, and Feeding segments make up 60%* of the category; Feeding includes cups, bowls, utensils and bibs. Within the cups segment, the Tommee Tippee Discovera range, launched two years ago, now has 17.5% share in the segment and is growing 20% year on year.” Tommee Tippee has launched eight new products in the last 12 months, including TT Closer to Nature Teethers Stage 2 and 3, the Tip n Sip cup range, Bendy Beeper Teether rattle and a Narrow Neck & Wide Neck twin pack of bottles. Rae says 2012 will see the launch of more exciting new products across all segments as well as upgrades of existing products as Tommee Tippee seeks to continue to drive the category.

Total Nappies: $116.954m Value % Chg vs YA -1.8 Total Disposable Baby Nappies: $103.204m Value % Chg vs YA -1.4 Total Disposable Baby Training Pants: $13.650m Value % Chg vs YA -5.1 Total Disposable Baby Nappy Liners: $99,447 Value % Chg vs YA 35.5 Total Baby Accessories: $9.092m Value % Chg vs YA -1.6 Total Infant Feeding Accessories: $5.980m Value % Chg vs YA 5.3 Total Infant Cosmetic Products: $1.977m Value % Chg vs YA -7.2 Total Infant Clothing & Bibs: $715,837 Value % Chg vs YA -25.6 Total Infant Toys: $375,290 Value % Chg vs YA -12.3 Total Infant Nursing Products: $43,935 Value % Chg vs YA 3.6 Total Baby Food: $161.352m Value % Chg vs YA 48.4 Baby Food: $22.356m Value % Chg vs YA 3.3 Total Infant Formulas: $133.601m Value % Chg vs YA 61.9 Total Baby Rusks: $3.095m Value % Chg vs YA 30.4 Total Baby Cereals: $1.926m Value % Chg vs YA 4.2

Total Baby Drinks: $373,961 Value % Chg vs YA 4.4 Total Baby Needs: $42.470m Value % Chg vs YA 2.2 Total Moist Towelettes: $26.767m Value % Chg vs YA 2.9 Total Baby Skincare: $2.315m Value % Chg vs YA -2.0 Total Talcum Powder: $1.774m Value % Chg vs YA 2.0 Total Bath Additives: $2.232m Value % Chg vs YA 3.5 Total Shampoo: $1.536m Value % Chg vs YA 6.7 Total Baby Creams: $2.535m Value % Chg vs YA 4.5 Total Nursing Pads: $1.499m Value % Chg vs YA -3.1 Total Baby Jellies: $817,352 Value % Chg vs YA -4.9 Total Solid Soap: $362,283 Value % Chg vs YA 4.0 Total Baby Medications: $1.025m Value % Chg vs YA 3.9 Total Nappy Cleaners/Sanitisers: $662,995 Value % Chg vs YA 3.0 Total Bodywash & Shower Gel: $486,690 Value % Chg vs YA -14.1 Total Antibacterial Treatments: $299,728 Value % Chg vs YA -3.7 Total Conditioning Aids: $157,290 Value % Chg vs YA 1.9 * Nielsen New Zealand ScanTrack (Databank)

*Aztec Grocery Data MAT 27/11/11

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AVENT The Philips AVENT brand comprises of a range of Bottles, Teats, Soothers and Cups. Philips AVENT have moved to consolidate their Soothers range from offering three age-appropriate Soothers to two age groups, being 0-6mths and 6-18mths. Designs have also been refreshed with the new colourful fun animal designs now in stores. Karen Kelly, key account manager, grocery, comments: “In the latest Qtr (Aztec to 4/12/11) Philips AVENT Soothers represent 24.4% of the Soother Segment in TKA showing value growth of +72.6% vs the same Qtr YA (to 5/12/2010). “The new ‘animal soothers’ have assisted in the tremendous growth being seen by the overall Philips AVENT brand in the Soothers segment. In the latest Qtr (Aztec to 4/12/11) Philips AVENT Soothers represent 24.4% (14% share in the same Qtr YA to 5/12/2010) of the Soother Segment in TKA showing value growth of +72.6% vs the same Qtr YA to 5/12/2010.” Regarding consumer trends, Kelly says:“Bottles andTeats continue to have very high brand loyalty with minimal brand switching once a consumer has chosen a particular brand. Consumer research undertaken in 2008 (Nielsen NZ) showed 73% of mothers always bought the same brand of feeding bottle and 78% the same teat.” She adds: “The Philips AVENT brand represents 25.8% of feeding bottle sales in TKA in the latest Qtr to 4/12/2011 (Aztec) showing +19.6% growth in the latest Qtr vs the Qtr YA. In teats the Philips AVENT brand represents 39.4% of the segment with +11.1% growth in the latest Qtr vs the same Qtr YA.” Kelly says: “Mothers look to the supermarket to top up on bottles and teats as the supermarkets offer price and convenience, but should the brand they are looking for not be available the majority will not swap brands but 32

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go back to a specialised retailer and the supermarket sale is lost.”

HUGGIES Zahin Jalil, category manager Kimberly-Clark New Zealand, says HUGGIES is the number 1 nappy brand in NZ with 47%* value market share and it is also the number 1 brand recommended by mums**.The product range supports parents’ needs for every age and stage of their baby’s development. From a precious newborn, to an active and crawling baby, right through to toilet training there is a product to suit a child’s individual requirements. Jalil says:“With the birth rate down 2%***, it is even more important to maximise return out of the current pool of babies in the market.” She adds: “HUGGIES nappies are continually innovating to provide mums with the best nappy for their baby. HUGGIES is the only newborn nappy with a wetness indicator that changes colour when the nappy is wet to tell new parents when it is time to change their baby’s nappy. Innovations like this are driving HUGGIES newborn nappies to 70%****market share of this segment.” She adds:“Nappy Pants add value to parents as they are designed for a struggle free change for an active baby, and driving value growth of the segment +70.3%* (Nappy Pants segment growing at +41% in value)*. HUGGIES Nappy Pants are priced at a premium per piece, and by trading consumers up into this segment increases the overall value of the nappy category (which is currently in decline).” Jalil says: “With the launch of HUGGIES Junior Nappy Pants in October 2011 there is now a complete range available from Crawler upwards and hence a greater opportunity for the consumer to continue to trade up. Nappy Pants are the way to transform the nappy category therefore HUGGIES is investing significantly in advertising alone to support this.”

She explains: “HUGGIES Pull-Ups have a wetness liner that helps the child learn wet from dry, helping them feel like a ‘Big Kid’.The fun Disney undielike designs will be updated in early 2012, so look out for Cars 2 characters on the boy designs.” She adds: “HUGGIES also has a range of baby wipes that are thick and super absorbent. The baby wipes category is growing at +3%* in value and the growth has been driven out of the premium segment +25.6%* with HUGGIES growth at 19%.” Look out for more exciting news from the HUGGIES brand in 2012. *Aztec Quarter Value Data to 18/12/2011 **Colmar Brunton Brand Tracking September 2011 ***Statistics New Zealand September Quarter 2011 ****Aztec MAT Value Data to 18/12/11

Heinz Wattie’s Group marketing manager Carey Wilken says the Infant Feeding Category is valued at $157 million and has shown significant growth of 47.9% in the past year (Nielsen, Total Supermarkets MAT $ to 4 December 2011). The extraordinary category growth was driven by exports of Infant Formula to Asia following product quality scares of Chinesemanufactured Infant Formula. Birth rates were down by 1470 over the previous year to 62,261 and well down from the 2008 peak of 64,540 (live births registered in NZ in the year ending September). Wilken explains: “There are five segments in the Infant Feeding Category including Infant Formula & Toddler Milks ($129.4m), Wet Baby food ($22.4m), Dry Cereals ($1.9m), Dry Snacks ($3.0m), and Fluid/Juice ($0.4m). Karicare has assumed market leadership in the Infant Feeding Category driven by export demand for their Infant Formula & Toddler Milk. Heinz Wattie’s remains a strong no 2 with dominant market leadership in all other Infant Feeding segments, apart from Infant Formula & Toddler Milk. Heinz Wattie’s offers

baby care

a comprehensive range of wet and dry baby food as well as infant formula and toddler milk drink products.Wattie’s also provides a wide range of Infant Feeding educational material to Plunket, Parent Centre and Well Child providers.”

more challenging tastes and textures, Wattie’s red label stage 2 jars and cans are available in a wide range of flavours, with ‘mashed’ textures.Additionally, the yellow label stage 2 products provide baby with nutritious treats such as custards and desserts.Wattie’s stage 3 green label products introduce baby to more Wattie’s, Heinz exotic tastes and ‘chunky’ textures. (Wet Baby Food) SaysWilken:“Over the last 12 months Wilken says: “The Wet Baby Food market continues to show steady $ the market has seen a strong growth in growth +3.8% MAT, however volumes ‘Pouch’ format providing parents with have declined driven by recessionary on-the-go convenience. Pouch now acbehaviour. Heinz Wattie’s is a domi- counts for $3.8m or 17% of the market. nant market leader with 71.9% share. The launch in May 2011 of eight Heinz The Wattie’s Plunket brand is market Simply Pouch and Spout varieties has leader in jarred and canned baby food helped to drive ‘Pouch’ growth. “‘Organic’ remains an important with more than eight out of 10 packs sold being Wattie’s branded. Wattie’s part of the Wet Baby food market acbaby food is approved by Plunket and counting for 31% of sales.” recipe development is done in consultation with an Independent Nutrition Farex (Cereals) Advisory Group thereby assuring nu- Wilken explains: “The $1.9m Cereal trition, appropriate texture and com- Category has shown a steady +3.8% plete food safety.” growth. Heinz Wattie’s with the Farex Research shows that Mum shops and Wattie’s Brands has 91% share of the category according to the age and this sector. stage of her baby; therefore it is im“The Farex brand received a fresh portant that a wide range of tastes and new look in October 2011, and for textures is available within each stage. added convenience, the Farex Cereal With “stages” labelling, Wattie’s has packs are now resealable pouches. The made baby feeding as easy as 1, 2, 3. change has been very successful, drivStage 1 blue label products are ‘pureed’ ing a 9.8% $ uplift in Farex sales Qtr simple fruits, vegetables, and rice, and vs Qtr YA. The packaging graphics are all suitable as first foods for babies change will be rolled out across Farex just starting on solids. To introduce Rusks in 2012.”

Heinz (Snacks) Following success in Europe, the UK and Australia, HeinzWattie’s launched Heinz Biscottini in October 2011. Experience from other markets is that these are enjoyed as much by the parent as the child, says Wilken. “Sales to date are good. The launch will be supported by a strong sampling campaign. The $3m Snack category’s 29.3% growth has been driven by The Wiggles products, however the Heinz Brand remains a strong market leader and is committed to providing a good range of delicious, nutritious and portion sized snacks for little ones.”

Nurture (Formula & Toddler Milk) Wilken told FMCG: “The 61.4% category growth has been driven by off-shore (Asian) demand, particularly for Karicare.This has resulted in share losses for S26 and Nurture, however actual sales of these two brands remain relatively steady. February is an exciting time for Nurture with fresh new packaging for the range. Nurture Gold with Digesti Plus meets the consumer need around digestion and is the only one with both prebiotics and probiotics to support healthy digestion.” All sales & share information is from Nielsen, Total Supermarkets MAT $ to 4 December 2011

#BCZ $BSF

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cate go r y c h e c k Green Monkey In New Zealand, the Green Monkey organic baby foods range is available in Countdown,Woolworths, and selected New Worlds and Fresh Choice stores. “Last year we launched our New Zealand Organic Beef, Apple, Beetroot & Pumpkin along with our New Zealand Lamb, carrot and sweet potato,” says managing director Charlotte Rebbeck. “Our Beef and Lamb varieties won the New Zealand food awards in 2010 and the Australian food magazine awards in 2011, making Green Monkey Australasia’s most awarded baby food.” She adds:“With high demand out of Asia for our products we have started production of New Zealand’s first organic ‘Growing up milk’ – developed with New Zealand’s top food scientist Lynley Drummond. “We also have other super healthy foods for kids in the development stage so watch this space.” Rebbeck comments:“The consumer megatrends are still heading towards quality, safe food, organics and honest products with a story to tell.”

Silk baby wipes Global Products director Chris Potter says: “Silk is one of New Zealand’s leading baby brands. Silk baby wipes are in 90% of supermarkets in New Zealand and Kiwi mums are making it the fastest selling wipe in New Zealand (Source: Nielsen Data).” Silk also has a very strong performing range of baby needs including oil, shampoo and other skin care products, adds Potter. In the last year Silk has also launched a range of baby bottles, teats, plates and other essentials.

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Potter says:“Initial sales of these products are strong. Like other categories that Silk has entered, the intention has been to highlight and grow interest and sales within the category. Baby wipes is a category that has some traditional growth left to achieve (the opportunities for baby wipes are almost endless!); however there are some innovations that we have looked at to stimulate additional sales as well. Silk Baby Flushable Wipes are fantastic for the environment as they will quickly break down completely, (they are even safe for septic tanks). Along with this, they are a great entry into toilet training. Children, generally, have only had wet wipes used on them from when they were born. When they go into toilet training they will feel more comfortable using a wet wipe that can be flushed. Initial feedback on this product indicates that sales are additional to existing sales.” Despite the economic downturn and some cheaper alternatives being available, these innovations and continued promotions ensure that Silk wipes sales are still in growth (ex factory sales up 5% 2011 over 2010), says Potter. He adds: “Silk also ensures that the environmental desires of parents are covered with our biodegradable options: baby wipes that are made from vegetable fibres; biodegradable nappy liners and biodegradable, flushable baby wipes.”

Sulco Precious Baby Wipes and Precious Nursing Pads are available from Sulco. The company has recently relaunched Precious biodegradable bamboo wipes from a 60 pack to an 80 pack, while at the same time upgrading the packaging. Consumer manager Deborah Higgins comments:“We also launched nursing pads around 12 months ago. The nursing pads are great value for money, sold as 15 pairs per pack (30’s). We are currently shipping this product with a free sample pack of five Precious Baby Wipes to sample our core target market – mothers of babies

under six months old. This captures them at the beginning of their usage cycle in wipes. “We have also launched a Precious 80 Fragranced wipe pack, which went to market in August 2011. This product is ‘lightly scented’ to give a fresh fragrance without the overpowering baby talc type of smell.” Higgins adds: “Precious as a brand has grown 40.2% in value and 26.4% in volume in Total Baby Needs (Aztec quarter to Sept 25th vs YA). The Precious Nursing Pad 30’s are #3 out of four branded nursing pad sku’s, and are rapidly gaining on Pigeon for the number two slot. Precious offers excellent value for money and the strong sales with still relatively limited distribution shows strong repurchase for this product.” The new Bamboo 80 pack has been on sale since September 2011. Higgins explains: “We opted to line price this with our other 80 count packs. This allows the consumer to make an eco friendly choice without paying a premium for it.This has not resulted in any trade off in sales from our other packs, in fact the Precious 80 Fragrance Free pack has grown over 48% in volume across the same period the Bamboo 80 was introduced (Aztec quarter to Sept 25th vs YA).” She adds: “We are also relaunching our Precious Flushable wipe. We have made the wipe size smaller and put more in the pack taking it from 40 to 50 wipes – this ensures consumers still get the same value for money. We have also reformulated the solution used to make it more skin friendly.” For more commentary and product updates in this category see fmcg. co.nz/features/category-reports.

What’s Hot

The most recent addition to the Queen Anne Marshmallow Easter offering is the smaller portion 200g range; still featuring the distinctive ‘half ‘egg presentation. The three variants are Dark Chocolate Marshmallow, Milk Chocolate Marshmallow and Dark Chocolate Mint flavoured Marshmallow Eggs. The classic Queen Anne white boxed format is ideal as a gift option or an indulgent ‘treat’. Queen Anne Marshmallow Easter Eggs are Gluten Free accommodating a growing consumer preference. Contact: Queen Anne Indulgence Ltd, 0800 783 362.

Trade Aid Trade Aid is a name that delivers the very best in fresh taste and organic goodness whilst adding a feel-good-factor to the shopping experience and the food range has NOW been extended. Introducing Trade Aid’s Premium Organic Coconut Milk - authentic, thick and tasting rich, creamy and mildly sweet – providing many health benefits beyond its nutritional content. This dairy-free, vegan drink is soy-free, gluten-free and GMO-free. Trade Aid’s organic coconut milk comes from Green Net, a fair trade organisation in Thailand and is ideal for curries, soups, baking or other preparations where coconut milk is used. Please contact the Trade Aid Sales Team for more information: Customer service - 0508 872 332 customerservice@tradeaid.org.nz Grant Childs (Sales Manager) - 0508 872 332 Grant.Childs@tradeaid.org.nz

ABC drinks In time for NZ’s late summer, ABC has launched a range of fruit flavoured drinks made from fruit concentrate. The tall slim-line pack with bright, colourful graphics clearly depicts the flavor of the drink. The launch packs include the popular flavours of Lychee and Mango and the more exotic flavours of Guava and Soursop (a tropical fruit with flavours described as strawberry/ pineapple with a citrus twist). Available in single served 250ml tetra-bricks with a straw. For more information or a sample of ABC’s new drinks, please contact: Oriental Merchant Pty Ltd Tel 0800 10 33 05 Fax 0800 10 33 11 Email: nzenquiries@oriental.com.au Website: www.oriental.com.au

the perfect match for every bbq Jimmy’s BBQ Sauce is a great marinade and base sauce for steak, chops, chicken, chicken livers and stews. Black & White Long Burning BBQ Briquettes for a great BBQ.

What’s Hot

Queen Anne moves into smaller portion Marshmallow

More innovation from Kiwi Biltong.

Contact: Hein Erasmus kiwibiltong www.kiwibiltong.com Mobile: 027 347 1577

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Health & Beauty Aisle Hand, foot and skincare products continue to evolve. FMCG talked to some of the stakeholders in this category to find out what’s on the horizon for 2012. time move into the top 10 for the Total Category*.” Morgan says: “New textures that deliver fast absorption with maximum moisture will no doubt continue to drive the innovation in this category. Garnier will look to continue to evolve the category in early 2012 launching into the Hand Segment with a range of Hand Creams and will also look to continue to develop its investment in the Body Segment introducing 300ml Body Pots to the market.” *AZTEC Grocery Data MAT 16/11/11.

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s with the Skincare category, the Hand and Body segment caters to all manner of skin types and is an all-encompassing segment; however the category is far from mature with dollar sales for the segment less than $20 million*. Alan Morgan, category manager CPD at L’Oreal says: “With Body contributing more than 88% of this segment with the lion’s share turnover of $17.7 million* it plays a key role in the segment and its growth. This is a key growth category at +8.7% vs YA* hence we are starting to see

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marginally more space beginning to be allocated to this category.” He adds: “The Body segment has seen a new trend in moisturising with long lasting and fast absorbing being key benefits that are now being seen in the category. This was led by the launch of Garnier Body intensives into the market in early 2011 which, with the backing of a strong television promotional campaign, saw sales for a single week peak at 2780 units in Total Grocery and for the entire promotional period achieved phenomenal sales of 10,045 units*. All of this has seen the brand in this short

The new plant-based skincare range from ecostore includes body butter, as well as a light or extra moisturising body lotion and hand cream. Everything consumers need to keep skin looking and feeling soft and supple this summer. Good health and wellbeing always comes first with ecostore, which is why they use the precautionary approach – if there’s any doubt about the safety of an ingredient for people’s health they leave it out and search for a safer one.While diet’s an important factor in the health of our skin so are the products we use to care for it. The skin is our largest organ, it lives and breathes, and is naturally porous, capable of absorb-

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ing everyday chemicals it comes into contact with, so it pays to use safer plant-based products with no unnecessary chemicals that consumers can trust. ecostore has used the latest in eco-science to create its premium range of plant-based skincare products that are healthier for consumers and are simply beautiful to use. Formulated for ecostore by award winning scientist and humanitarian Sir Ray Avery, who brings more than 30 years experience in the pharmaceutical industry to the development of its skincare range. Using jojoba oil, shea butter, and coconut oil to match the skin’s natural oils, they nourish and protect both normal and dry skin and are free of potentially harmful ingredients like parabens, dimethicone, mineral oils and synthetic perfumes and dyes. The range comes in stunning new bottles featuring the work of internationally renowned New Zealand artist, John Reynolds.

Skincare as nature intended Skinfood, New Zealand’s own natural based skincare range, has 12 high quality, products that cleanse, nourish and protect the skin. Using only the finest ingredients and containing no artificial colours, perfumes or paraben

preservatives, Skinfood provides an extensive skincare range that isn’t complicated, is very affordable, and is easily available. The range includes a cleanser, facial wipes, several face moisturiser options, an exfoliant, mud mask, body butter, tanning moisturiser and shave gel. A hand cream was launched in August 2011 and a lip balm early in 2012 (only available online). Skinfood New Zealand’s territory sales manager Haley Johnson said: “The two most recent products to our range, the hand cream and the lip balm, have come as a result of customer demand. “The key points we constantly hear are that people want a good quality, natural based product that delivers great results. The price point is also a key factor. From our research we found that skin care products don’t need to be expensive to achieve great results. We source all our ingredients from New Zealand and the Pacific, which not only supports local businesses but keeps our costs down,” Johnson said. The new hand cream (RRP $7.99) is made with natural ingredients including manuka honey and aloe vera juice, both renowned for their healing and soothing qualities. It also includes the moisturising properties of avocado oil.

Total Hand & Body Excl. Baby: $18.924m Value % Chg vs YA 7.6 Total Body Skincare: $16.607m Value % Chg vs YA 7.6 Total Hand Skincare: $2.317m Value % Chg vs YA 7.4 Total First Aid: $9.102m Value % Chg vs YA 3.8 Total Personal Antiseptics: $2.190m Value % Chg vs YA 15.3 Total Insect Repellents: $2.138m Value % Chg vs YA -0.7 Total Liniments: $3.862m Value % Chg vs YA 15.9 Total Antiseptic Liquids: $2.032m Value % Chg vs YA -4.1 Total Foot Care: $905,605 Value % Chg vs YA 3.1 Total Anti Itch/Emmolients & Protectives: $491,438 Value % Chg vs YA 15.0 Total Anti Viral Applications: $1.007m Value % Chg vs YA 21.3 Total Antihistamines: $387,023 Value % Chg vs YA 364.7 Total Topical Anti Parasites: $538,352 Value % Chg vs YA 7.6 Total Topical Vein Treatments: $10,776 Value % Chg vs YA 41.6 * Nielsen New Zealand ScanTrack (Databank)

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cate go r y c h e c k Available from Foodtown, Woolworths, Countdown, The Warehouse, selected New World and Pak‘n Save stores nationwide or online at www. skinfood.co.nz. The RRP for the range varies from $7.99 - $15.99.

Hand hygiene The Germ-X brand is distributed by BDM Grange in supermarkets and selected retailers. Hand hygiene is one of the simplest and most important steps to prevent the spread of germs that can cause illness.When soap and water aren’t available, Germ-X hand sanitizers and soft wipes provide complete antibacterial protection at home, work, school or “on-the-go”. Germ-X also donated products to the New Zealand Red Cross 2011 Earthquake Appeal. Germ-X offer convenient and consistent year-round protection with a range of instant waterless hand sanitisers and wipes that kill 99.99% of many common harmful germs and bacteria. Germ-X products all have moisturising properties with added Vitamin E leaving hands soft and refreshed. They come in the 44ml size, perfect for the handbag or travel, the 236ml and 887ml pumps for home and high traffic areas, or individually packed wipes. The Germ-X Soft Wipes 72’s canister offers alcohol free, quilted spun lace fabric wipes that provide better durability than pressed paper wipes, all with the convenience of a flip top lid for easy dispensing, says brand executive Jenna McCormick.

DU’IT The DU’IT brand is distributed by BDM Grange in supermarkets and selected retailers.With success in over 20 countries, DU’IT is renowned for its efficacy and ability to help provide year-round, advanced skincare solutions for hands and feet. Containing the finest ingredients from naturally derived and easily renewable resources, DU’IT is recommended by many hospitals, doctors, specialists and pharmacists. DU’IT Foot & Heel Balm Plus 38

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is the new sole mate that is recommended by Podiatrists,Dermatologists and Diabetes Educators specifically formulated to tame, soothe and heal roughened, cracked and thickened skin. It is fast acting, providing visible effects within five days.Versatile as it is practical, this product can also be used on knees, elbows or any part of the body. Heal busy hands all year round with DU’IT Tough Hands. DU’IT Tough Hands gives a boost of long lasting nourishment, in a non-greasy formula to effectively relieve dryness, help prevent ageing while also shielding against environmental stresses. The newest addition to the DU’IT range is a heavy duty hand cleaner for the home. DU’IT Tough Scrub is a fast cleaning, non drying formula. Unlike other industrial hand cleaners DU’IT Tough Scrub contains no harsh solvents, harmful chemicals, mineral oils, alcohol or ammonia. DU’IT products are all clinically proven, dematologically and scientifically tested, and as a policy, none of the products are tested on animals, says brand executive Jenna McCormick.

Heritage brand still going strong Bosisto’s is celebrating a milestone birthday this year... 160 years! Bosisto’s Eucalyptus Oil, established in 1852, is one of the oldest and most respected heritage brands in Australasia. Bosisto’s supplies a range of essential oil products – eucalyptus, tea tree and lavender oils. Bosisto’s products are produced using only the highest quality therapeutic oils and are available to consumers in bottles and sprays. “Bosisto’s is the leader in innovation and product development and a driving force in category growth due to introduction of new products,” says Eileen Bond, corporate sales manager, FGB Natural Products. In 2011 Bosisto’s developed and launched into Australia Eucalyptus & Tea Tree Solutions: pure essential oils in a unique, water soluble solution for health and household applications.

With the increase in pricing of essential oils, these represent a value for money alternative for cost-conscious consumers. “Consumers are spending frugally at the moment and are looking for value for money, natural and effective products. They’re happy to revert to tried and tested products that are multipurpose – great for the laundry, kitchen, bathroom and beyond,” comments brand manager Nicola Cant.

Bio-Oil BDM Grange supplies Bio-Oil, a specialist skincare product that is recommended to help improve the appearance of scars, stretch marks and uneven skin tone. It is also recommended for ageing and dehydrated skin as it helps replenish the skin’s natural oils which can be stripped away by many environmental factors. It helps lock in moisture and reduces the rate at which water vapour is naturally lost through the skin’s surface. Bio-Oil successfully combines the well-documented benefits of two important skincare disciplines – natural plant oils (used for centuries to maintain skin condition) and vitamins (a vital element in the promotion of healthy looking skin). The mix of natural plant oils and vitamins is then blended with Purcellin OilTM which acts as a carrier oil to allow for easy, targeted absorption. Bio-Oil is easily absorbed and non-greasy. It is hypoallergenic and is suitable for sensitive skin. It is formulated for use on the face and the body. It is applied twice daily, massaging gently in a circular motion until fully absorbed. Bio-Oil is available in grocery in two sizes – 60ml and 125ml.

1 million

marketing investment in media and in-store support for 2012

Be prepared! The Bio-Oil 2012 marketing campaign is underway and the TV advertising begins on 19 February. Bio-Oil is STILL New Zealandâ&#x20AC;&#x2122;s No.1 selling scar and stretch mark product*. It is also a multi use product that is not affected by seasonal ďŹ&#x201A;uctuations so provides year round category growth within skincare.

FILL YOUR SHELVES WITH BIO-OIL NOW! *Synovate Aztec, 2011

g rocer y b us ine ss New food safety legislation for NZ Food Safety Minister Kate Wilkinson says opponents of the Government’s draft Food Bill are scaremongering about its impacts. “Much of what they claim is untrue and causing many people unnecessary concern,” Wilkinson says. “The Bill is designed to simplify 30-year-old food safety regulations and ultimately aims to reduce our high level of food-borne illness and corresponding economic cost. It’s estimated food-borne illness caused a $162 million loss to the New Zealand economy in 2010. “The current system is prescriptive and based on rules and inspections – which are often costly to food businesses. The new regime will create efficiencies for traders and improve food safety.” Wilkinson says the Bill’s opponents are whipping up fears that small traders such as community gardens, food co-ops, heritage seed banks, farmers markets, cake stalls and roadside fruit and vegetable stalls will be caught up in costly red tape. “That is simply not true. This Bill won’t in any way affect people’s right to grow food and to then exchange, sell or trade it. “Small traders such as those running roadside stalls or selling their own horticultural produce at markets are generally classed as low risk and will not need to register. They will simply receive a free ‘food handler guidance’ information pamphlet. “Food grown at home for personal or family consumption, or given away to friends is excluded from the measures in the Bill,” Wilkinson says. The new regime will have three regulatory levels of safety based on risk, with those food businesses classed as high risk (such as restaurants or baby food manufacturers) having the highest level of requirements. Businesses presenting a medium level risk (such as bakeries and pre-packaged food processors) would be subject to national programmes (a more flexible and generic approach), with those presenting low risk receiving food handler guidance.

The draft Bill has been through a full public consultation process and has been passed by Parliament’s Primary Production Select Committee with cross-party support. “This is an important piece of legislation and I am conscious that Labour and the Greens have new Food Safety spokesmen. I am more than happy to meet with these parties to discuss the Bill and any concerns they have to ensure that it delivers what we all want – safer food and a reduction in illness, without increasing compliance costs to industry. “The Bill is intended to modernise and enhance our domestic food safety regime – not over-regulate it. “I encourage people to visit www.foodsafety.govt.nz to read what the Bill actually contains, and not to listen to the scaremongering from some of the Bill’s opponents.”. l

World Retail Congress Asia Pacific 2012 The inaugural World Retail Congress Asia Pacific, launched in 2011 in Hong Kong, attracted an outstanding line-up of speakers who offered regional and international insights into how to build strong retail businesses in these challenging times. The congress also proved to be a powerful platform for chief executives to meet and to network. This year will see the congress move to Beijing, China. The 2012 World Retail Congress Asia will be held March 28-29 with a new programme that will include insights into how Asia is transforming the landscape of global retailing; the very

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latest consumer trends; how online and mobile innovations will drive change; the future shape of modern retailing across Asia and how international retailers view the opportunities and challenges. Speakers will include chief executives from Walmart Asia, Deloitte, SPAR International and Coca-Cola. With the pace of change across Asia moving ever faster, the World Retail Congress Asia will be an important and highly informative gathering. Visit www.worldretailcongressasia.com for more information. l

g rocer y busi n ess New test for pesky pathogens testing will make everyone’s life much easier – from the factory New technology offers test results for Salmonella within 24 to the customer.” hours and for Listeria monocytogenes within 48 hours – faster Benefits of the reduced testing time are many and include than ever before. reduced storage time. “This extends available shelf life time and It seems all too common to hear of product recalls due to reduces the risk of costly product recall,” says Bekker. pathogen contamination. In a recent case in the US 30 people Bekker, who has an extensive background in the dairy died from Listeria infected cantaloupe melons. Both Listeria industry, believes the new testing will be important for that and Salmonella are implicated in food poisoning cases from industry to optimise production and hygiene monitoring and meat, poultry, seafood, processed dairy (including infant accelerate corrective action plans. “The flow-on effects on formula), delicatessen products, bread and pastry mixes, fruits plant efficiencies right through to logistics are significant and and vegetables, animal feeds, herbs and spices. will change the way we produce, release and distribute food Testing for Salmonella and Listeria monocytogenes is mandatory for most ready-to-eat products in New Zealand. products in NZ.” l Testing using traditional methods takes 6-10 days to deliver reliable results and while there is no argument that people’s safety comes first, manufacturers are under constant pressure to keep inventories low and move stocks from the warehouse as quickly as possible. SGS NZ has been searching for technologies that aid manufacturers, particularly in the FMCG area, to release product to market with confidence and a fast turnaround. After rigorous testing and validation, it is now able to offer faster test results. The highly specific and sensitive ELFA technology is provided by bioMerieux on VIDAS® and is offered exclusively by SGS NZ. SGS Laboratory testing manager Melt Bekker believes this new technology is a significant breakthrough for the food industry. He says: “There is so much pressure on manufacturers and Melt Bekker gets acquainted with the VIDAS. subsequently on laboratories; I think this

Increased exhibitor demand for ProWein 2012 ProWein, the leading trade fair for the international wine and spirits sector, will be opening an additional hall at Düsseldorf’s exhibition centre, due to an increase in exhibitor demand from all internationally relevant wine growing nations. The central Tasting Zone will shift into the newly added Hall 7.1 and the organic wine segment, which has seen steady growth over the past few years, will now be featured on a concentrated platform. Ralph Dejas, managing director at ECOVIN, said: “We are delighted at this strong joint presentation of organically produced wines.” These wines are playing an increasingly important role on the international

wine scene, he added, and visitors to ProWein can now gather comprehensive information at a glance on the innovations offered by this dynamic segment. Running from March 4-6 with over 3700 expected exhibitors, ProWein 2012 will encompass suppliers from around 50 nations. New World countries will also be represented and the “Down2Earth” project featuring the wine nations/regions of Argentina, California, Chile, New Zealand and South Africa once again awaits visitors with numerous events and tastings. For more information visit www.prowein.de. l FEBRUARY 2012 FMCG

g rocer y b us ine ss Suppliers shine at PEL Awards

Supreme Supplier of the Year, Coca-Cola, with Progressive Enterprises MD Dave Chambers (second from left) and Murray Johnston, Progressive Enterprises GM Merchandise (centre).

Bakery Supplier of the Year, NZ Bakels, with Ryan McMullen, Bakery business manager for Progressive Enterprises and Murray Johnston, Progressive Enterprises GM Merchandise.

Meat Supplier of the Year, Inghams Enterprises, with Steve Mills and Murray Johnston from Progressive Enterprises.

Field Team Excellence Award Winner for Liquor, Pernod Ricard, with Dave Chambers, MD Progressive Enterprises.

The Progressive Enterprises 2011 Supplier Awards were held in November 2011 at Hoyts Cinemas, Sylvia Park, Auckland. Hosted by Dave Chambers, managing director of Progressive Enterprises, and Murray Johnston, general manager - Merchandise, the Awards celebrated the excellence and support that Progressive Enterprises received from suppliers throughout the year. Coca-Cola was awarded the Supreme Supplier of the Year trophy and Cadbury received the Best New Line trophy for the Cadbury Mousse launch. Among many other highlights were Snap Fresh Foods (Produce Supplier of the Year), Hellers (Best Delicatessen New Line) and NZ Bakels (Bakery Supplier of the Year). Inghams Enterprises was voted Meat and Delicatessen Supplier of the Year and the Field Team Excellence Award Winner for Liquor was awarded to Pernod Ricard. l

Crossmark evolves In 2011, Crossmark reduced its carbon footprint by 230 tonnes, or more than 60%, after executing a plan across Australia and New Zealand to consolidate the 500-strong grocery field team in order to reduce travel distance and time and petrol use. “We have decreased our carbon footprint, appointed a new executive team to better manage our clients and people, and implemented further technological advances across our field force. As a result, our clients are getting better and more efficient delivery of service and in turn we are seeing continued growth in our business,” Crossmark ceo Kevin Moore said. Crossmark has capped off a successful year by rolling out tablet technology from its specialist IT, telco and consumer electronics teams to its wider consumer packaged goods and grocery field force. This initiative provides the field team with direct access to each client’s wide range of sales, distribution, proof of delivery and pricing information to more effectively achieve retailer and manufacturer sales objectives within store. It also allows training

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videos, and Crossmark’s proprietary “Learn & Earn” interactive product knowledge tools to be used whilst in store. Operating on Apple’s iPad2, the field force also has access to a range of specific applications to assist sell in and sell through of products. This tool has been used for the past 12 months for some key clients and has significantly improved sales with stores the Crossmark teams call upon. l

Did you know . . . Crossmark is Australasia’s largest retail marketing services company, with multi-channel expertise across supermarket, mass, convenience, pharmacy, and specialty retail, and serving over 200 manufacturers and brands. Crossmark’s services include merchandising and point of sale, product sales training, consumer and staff incentive programmes and product sales.

g rocer y busi n ess Skilled training graduates deserve recognition Completing a high-level qualification while working full time requires a lot of dedication, yet every year several thousand employees in the industry achieve highly with little public fanfare. Companies supporting their employees through on-job training are equally dedicated, investing in lifting transferable skill levels throughout the New Zealand industry. To recognise the efforts of learners and employers, industry training organisation Competenz has published and distributed a ‘Roll of Honour’ handbook. The handbook celebrates all graduates who completed Level 4 or higher qualifications in 2011 within industry sectors it works with, including the food and beverage manufacturing and baking industries. A total of 783 graduates from over 500 companies nationwide feature in the Roll of Honour. Graduates completed their national certificates in disciplines ranging from craft and plant baking apprenticeships, to competitive manufacturing, business first line management and quality management – and even engineering apprenticeships to keep industry running. “All of our graduates can be very proud of their achievements, knowing their skills will stand them in great stead for their career development,” says Competenz acting chief executive, Fiona Kingsford. “Achieving a high-level, industry-based qualification requires just as much focus as anything you’d study at university or polytechnic, with the added challenge of juggling work priorities.” It’s a small way of recognising the time and effort learners in the food and beverage manufacturing sector put into completing their training, and the role of employers providing employees support throughout their on-job and off-job learning. “Companies also deserve to be recognised for their commitment to invest in training – a more highly skilled workforce with transferable skills benefits both the company

and our country’s economic future.” It’s a positive step toward meeting the skill gaps companies identified in research Competenz conducted last year on this issue. But according to the research, a further 3800 skilled workers will be needed by companies within the wider manufacturing sector by 2013. “The only sustainable way for companies to gain the skilled staff they need is to upskill even more of their current employees, or take on new staff to train to your requirements,” says Kingsford. “Competenz offers food and beverage manufacturing companies expertise in planning and training support to help meet their upskilling needs and business objectives.” Competenz’s annual alumni magazine The Guild has also been published to coincide with the handbook’s release. This latest edition features the inspirational stories of nine 2011 graduates, each with an interesting perspective on what drove them to complete a qualification on the job. Jackie Herbert of Vitaco Health, Auckland is one of the graduates profiled. A degree-qualified food scientist, Jackie was able to quickly apply learnings from her business first line management training to her everyday work. “For me the motivation came from wanting to be a better manager,” says Herbert. “I had the technical background but needed to upskill in the area of management.” Her sentiments are echoed by many industry training graduates who lead teams in their roles. “Graduates’ stories show that training positively impacts the lives and career prospects of people at all levels of work experience, and it’s never too late to get qualified in your field,” says Kingsford. For more information on upskilling your staff in 2012 or to request a copy of the 2011 Graduate Handbook, contact Competenz on 0800 526 1800 or visit competenz.org.nz. l

Congratulations to our Graduates of 2011 783 skilled individuals now ready to support and build NZ’s economy

www.competenz.org.nz

FEBRUARY 2012 FMCG

g rocer y b us ine ss Coca-Cola’s big investment Canterbury Earthquake Recovery Minister Gerry Brownlee joined Coca-Cola Amatil New Zealand (CCANZ) in January at the official opening of a new beverage bottle production line at the company’s manufacturing plant in Woolston. The $15 million investment in world best-practice technology enables CCANZ to design and self-manufacture its own PET plastic beverage bottles using fewer raw materials. In order to adequately house this new equipment the company has further invested close to $9 million into infrastructure repair and re-establishing of operations at the site after material damage sustained from earthquakes in 2010 and 2011. The new PET plastic bottles will be the lightest-weight beverage bottles made in the country, and the “blow-fill” bottle technology will deliver a reduction in the carbon footprint of every bottle of around 20%. The Christchurch facility is part of a A$450 million CCA Group-wide investment in blow-fill manufacturing – the largest infrastructure investment for the company in a decade. The technology is being installed across CCA’s production facilities in New Zealand, Australia, Indonesia, Papua New Guinea and Fiji from 2010-2015. The Woolston site in Christchurch has one of three New Zealand blow-fill lines with the remaining two situated in Auckland. Blow-fill technology allows CCANZ to redesign and lightweight its small PET bottle range, delivering significant cost savings, production efficiency gains, increased product shelf life and stacking ability. Coca-Cola Amatil group managing director Terry Davis said that blow-fill technology will provide a quantum lift in the company’s manufacturing capability in New Zealand. “Innovation like bottle self-manufacture delivers benefits which are good for CCANZ, our customers and the communities we operate in,” Davis said. A significant portion of the energy savings comes from bottle

Blow-fill technology allows CCANZ to redesign and lightweight its small PET bottle range, delivering significant cost savings, production efficiency gains, increased product shelf life and stacking ability. 44

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Terry Davis (CCA group managing director), George Adams (CCANZ managing director) and Minister Gerry Brownlee at the Woolston plant.

redesigns that use less PET resin, with other savings being delivered by the elimination of the need to transport empty bottles to CCANZ bottling facilities, and energy savings on the production lines. The new blow-fill line will produce approximately 16,000 bottles per hour. CCA estimates that more than 9000 tonnes of PET resin will be saved per year when all production lines across the group have installed blow-fill technology. At a local level CCANZ estimates decreasing the amount of PET resin required annually by 12%. This equates to approximately 650 tonnes of PET resin saved every year, or the equivalent of 24 million 600ml PET ‘Coke’ bottles. CCANZ will be able to deliver the lightest weight PET beverage bottle manufactured in the country and all its carbonated soft drink products will be in PET bottles that are 10-15% lighter. Other raw material savings include reducing the use of cardboard and shrink plastic in secondary packaging; making labels lighter using less raw materials; and eliminating the need for a plastic liner in the closures, or caps, which are also shorter in size, and again, manufactured using less PET resin. Coca-Cola New Zealand managing director George Adams said, “Our commitment to our people and the Christchurch community in which we operate is unwavering. I’m also delighted to announce we have received approval for an additional capital investment into our Woolston plant for a $5 million automated distribution centre. Across our site rebuild, new blow-fill technology and redevelopment of the warehouse, we have invested close to $30 million into the local business community. This sort of investment is crucial for Christchurch as it continues to re-establish itself as a major business hub in the South Island.” Coca-Cola Amatil employs approximately 140 staff in Christchurch as part of an 1100 strong workforce nationwide. CCA’s Woolston facility was first established in 1973 and has manufacturing and distribution capabilities primarily for carbonated soft drinks. In addition to the Woolston site the company also has a juice manufacturing plant in Hornby. l

The value of FMCG recruitment specialists

recr ui tm en t

Kevin O’Shannessey shares some expert advice. I’ve had many discussions around the value that an FMCG recruitment company can provide with line managers over the past five years. It’s a topic that should always be raised prior to any recruitment assignment. Here’s my view, from someone who has worked in the industry for over 12 years and now offers a professional service to the industry. Using a reputable, third party recruitment consultant can still be one of the most cost-effective options in finding the best talent for the organisation you work for. Finding high quality and appropriate candidates Candidates appear to be passive by default in today’s job market. The need for many tools and techniques to access and encourage quality candidates to consider change is very real.The need for a consultant to build ongoing trusting relationships with the candidate pool is more important than ever. Most organisations just rely on online ads to generate candidates for jobs.This strategy is no longer enough. Extension of your HR department When an organisation is recruiting directly it has no independent advocate representing the organisation. Candidates that are “the best” will often have other options to consider. A high quality consultant will know how best to represent job opportunities and organisations to candidates who may be nervous about a move. I had a recent situation (not in any way uncommon) where I was discussing a reputable company with a candidate. I mentioned there was a role available that had been advertised, he’d seen the advert and decided not to apply because of what he had heard about the company. His assumptions and conclusions were not

accurate and he was happy to explore the opportunity in the end.

Kevin O’Shannessey Manager – FMCG Sales & Marketing, OCG Consulting.

Market knowledge As it is important to recruit FMCG employees with the right background, so it is important to work with recruitment consultants who know the industry well and ultimately specialise.The required sophistication of key account managers is on the rise, as is the need for more commercial marketers. An FMCG consultant who struggles to define category management may not be the best person for an organisation to use! A high quality recruitment consultant knows their market niche so intimately that they can provide not only excellent service, but useful unbiased advice to their clients and candidates. It is unlikely that a line manager will have anything close to the same understanding of where the candidate market is at. Speed and success As a line manager you will have higher daily priorities than assessing the resumes of numerous candidates who are not appropriate for the role that you’re recruiting for. Recruitment consultants have no higher priorities than providing the right person for the assignment they are working on, as quickly as they can.A high quality consultant should be able to provide the best candidate to a client, faster than a client can do it themselves. If they can’t it’s likely they don’t know the FMCG market well enough! In conclusion, yes there is a cost to consider. Maybe the upfront cost of finding a fabulous candidate through a credible FMCG recruitment company is less than you’d think?

Fiona Hill Dale Rous Hamish Marr

Kevin O’Shannessey

www.ocg.co.nz | 09 377 7575 FEBRUARY 2012 FMCG

What are you saying socially? Legal expert Corinne Blumsky takes a close look at social media policies.

ocial media sites are fast becoming major communications platforms for many businesses, offering a whole new way to interact with customers and get a fresh and constant view of your marketplace. Once embraced by a business, social media sites offer increased collaboration and brand awareness as well as drive down marketing and promotion costs. At the heart of any social media communication is your brand. It needs to be safeguarded in cyberspace just as you would protect it in the physical world. The scope to talk socially about your business is huge and increasing daily through sites including wikis, Facebook, LinkedIn, Twitter, Flickr and YouTube. You need to be aware of what is being said about you. 46

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Many businesses are still wary about engaging socially and encouraging the use of social networking. The key to striking the balance between blocking social networking and encouraging its use is a strong, clear policy. Setting a few guidelines about how you wish your brand to be portrayed on social media sites will help encourage employees to take part in social networking and educate them about doing so in a safe, fitting way. A social media policy is no different to having a manual outlining the acceptable use of a businessâ&#x20AC;&#x2122; company car or telephone. A social media policy should outline what can and canâ&#x20AC;&#x2122;t be done on a social media site as well as promote, encourage and motivate employees to use social media positively to talk about your business. Having a policy

is not about control â&#x20AC;&#x201C; it is about mitigating risk for your business and encouraging engagement with your business by your employees and customers. Here are three reasons why you need a social media policy. 1. Setting standards for communication To avoid misuse of your brand and business colour schemes, clearly outline how you expect your brand to be used in a social media forum. Make resources available so your brand in the correct format and colour is able to be accessed and used by all employees. 2. Educate, educate, educate Clearly outline how you wish your business to be described and referred to.What terms would you want used?

featu re

Are there terms you never want associated with your business? Are there particular industry or workrelated terms you want associated with your business? Make sure these are all clearly outlined so employees don’t need to guess. The dynamic nature of social media means that any policy must be a living document. It needs to be regularly reviewed and updated as appropriate – not stuck in a folder somewhere, not to be looked at again until there is a problem. 3. Expectations for behaviour If employees know the rules and what is expected from them, they are less likely to make mistakes. State clearly what standards of performance you expect. A little personal responsibility and some common sense go a long way. What should be included in a social media policy? There are no hard and fast rules about the content of a policy and often this will be driven by the nature of your business. Typically though a social media policy will provide guidance on the following:

Businesses that get the most out of social media know how they want to project their brand or image online and then tailor their messages to suit. • The purpose of using social media • The release of confidential information about your business and customers • Protecting the privacy of your business and employees • Being honest and authentic in your communications • Respecting the intellectual property rights of others • Avoiding racist, offensive, defamatory, insulting and obscene comments • Referring to customers, partners, suppliers without approval • Commenting on controversial issues • Who to contact within your business if a mistake is made • The use of disclaimers (if appropriate) • Peer review of communications (if appropriate) • What professional standards need to be maintained

• Understanding the meaning of ‘community’. Social media is here to stay. Businesses that get the most out of social media know how they want to project their brand or image online and then tailor their messages to suit. They plan their messages to ensure they are effective and they train staff to help them balance their social media responsibilities effectively with their other day-to-day tasks. Make it work for your business and use it to your advantage to engage meaningfully. Corinne Blumsky Partner A J Park Law & A J Park Patent Attorneys, Wellington

iP is about increasing potential Kiwis are creators – we look at the ordinary and imagine the extraordinary. In today’s fast moving world everyone is out to increase the potential of their products and services. Sound IP advice is needed more than ever. If you have an idea, invention, product or business and you need advice on your intellectual property – then you’ll have a better shot at success if you know how to protect, enforce and proﬁt from your intellectual property. “Argento Libre” Shopping cart lounger: Artist Mike Bouchet Avaliable through Cumulus Studios

We help global innovators, marketers and entrepreneurs protect and commercialise the IP in their business. Our expertise in advising for the FMCG business has been built up over 120 years in New Zealand. We’ll give you clear, concise and jargon-free IP advice, from patents and trademarks to e-commerce and offshore contracts. Call us – the right advice is worth it.

0800 257 275 I www.ajpark.com I New Zealand I Australia

FEBRUARY 2012 FMCG

gs 1

“Pulling it back” Dr Peter Stevens explains the launch of a National Recall Portal. Dr Peter Stevens, chief executive, GS1. Email: peter.stevens@gs1nz.org.

In my last column I mentioned that we use the corporate version of Gmail. Although not perfect, one of the cool features it has is what I like to call the “*&%^&, pull it back!” function. What this does is turn on a slight and unnoticeable time delay in sending any email so you can ‘pull it back’ without embarrassment. This really helps if you realise you’ve made a mistake soon after you’ve pushed the ‘send button’! If manufacturers of products are lucky, problems are picked up during or just after manufacturing when the product is still under their control. Sometimes QA miss something, or consumption/use of the product in the market uncovers a problem. If it’s a small problem that does not give concern for health or safety, a trade withdrawal can occur; where the problem is more serious a recall must be undertaken. Either way, a critical success factor is downstream notification to trade partners and consumers and monitoring to ensure that product is ‘pulled back’. Unfortunately, in the NZ (and global) environment the processes around pulling-it-back are not as easy or streamlined as many would like. The Australian Competition & Consumer Commission, with assistance from the NZ Ministry of Consumer Affairs, looked at this in a landmark report in 2010 and highlighted this fact. In the NZ environment a workgroup involving Cadbury, DB Breweries, Fonterra Brands, Foodstuffs, Goodman Fielder, KimberlyClark, Nestlé, Progressive Enterprises, the NZ Food & Grocery Council and the Ministry of Agriculture & Forestry (MAF) has been working on a sophisticated national recall solution over the past 12 months. The new service, to be called ProductRecallNZ, will be launched in April 2012 in collaboration with major food and grocery suppliers, both major supermarket retailers (Foodstuffs, Progressive Enterprises) and MAF.

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For industry this will be a welcome innovation and improve the efficiency of removing potentially harmful grocery, food, liquor and other products from the supply chain. As Dianne Bird, quality assurance manager for DB Breweries, comments: “A recall/withdrawal can be a stressful time for a manufacturer, especially as it is a process that is seldom put into practice. An industry-wide solution to assist in this area is long overdue.” GS1 ProductRecallNZ will enable manufacturers and suppliers to share real-time recall and withdrawal notifications with their trading partners in a secure and targeted manner and offer: • a single, industry-based recall and withdrawal process, aligned with the requirements of the regulator • an easy and intuitive workflow that makes the process of issuing and managing notifications simpler and without duplication of effort • the ability to target notifications to selected companies with tailored information • lower risks and costs in the execution of recalls with associated brand protection • recipients of notifications (primarily retailers) will have an electronic notification point, with appropriate audit trails replacing the ‘kaleidoscope’ of emails, faxes and phone calls prevalent now. Once operational, it is intended that ProductRecallNZ will become the defacto tool used by New Zealand’s major retailers to support product recall and withdrawals. (Note: using ProductRecallNZ does not replace any statutory obligations associated with a recall – you may still have to take out one of those advertisements with the diagonal strips around them in the major newspapers.) Early indications are that “ProductRecallNZ will bring the New Zealand FMCG sector more into line with international trading partners and provide consistency of process for NZ manufacturers and suppliers who need to activate a withdrawal or recall with their respective retail networks”, says Mark Bell, national compliance and food safety manager for Progressive Enterprises. Perhaps after April, it will be much easier and cheaper to ‘pull it back’ – just like my email service! To find out more please send an email to ProductRecallNZ@gs1nz.org or phone GS1 New Zealand on 0800 10 23 56.

CONVENIENCE CHANNEL FOCUS

Contact your local Brandlines representative on 06 356 5323. FEBRUARY 2012 FMCG 49

Efficient supply

AACS consultant Erika Pacini shares some of the latest research findings. An efficient supply chain is not only an asset to any business, but critical in todayâ&#x20AC;&#x2122;s very competitive retail environment. Effective supply chain practices can improve business performance, increase product innovation, increase revenue, and potentially, profitability. In addition there are sustainability benefits associated with a streamlined supply chain for businesses. Here are five ways to maximise growth potential and help to create an efficient supply chain for 2012. 1. Reduced risk During 2011 numerous industries were affected by devastating events. The first step in reducing risk is to identify those materials, products, or services that are critical to supporting business

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continuity. Uncover and understand the supply chain that supports these areas and implement mitigating actions to increase supply certainty. Potential options include secondary sources of supply, supplier-managed inventories, and alternative means and routes of delivery. The floods in Queensland are an example of how natural disasters can affect a businessâ&#x20AC;&#x2122; access to goods and services. 2. Reduced cost Convenience stores do have an expensive price perception in a number of areas and re-engineering their supply chain may drive costs down, allowing prices to be sharper whilst maintaining acceptable margins. Improved value will also translate into increased sales volumes. Examine new ways

such as cross dock, VMI and greater consolidation of deliveries for greater efficiency and elimination of costs. 3. Increased innovation Where would companies like Samsung, Apple, and Google be if not for the innovation of their supply base? The technology being introduced for smart phones may have been the work of the parent company, but these are only brought to life through the innovative ideas and solutions of their suppliers. Initiate ideas that could improve the value to customers, or that could set products, services and your brand or store apart from the competition. Reach out to key suppliers with thoughts and ideas to take your products to the next

chain management level. Collaboration with key partners is essential but is an area not well understood or acted upon. 4. Enhanced competitive advantage Building competitive advantage requires setting products or services apart from the competition. Some of the most effective means of doing so are to rapidly introduce new ideas and concepts, deliver them to the market faster than the competition, and maintain the necessary levels of inventory required to support new customer demand. Leverage these activities through your supply base utilising supplier knowledge, strategic inventory placement, and favourable payment terms. Supply chain effectiveness can be a major lever to ensuring competitive advantage through ensuring consistency of offer, freshness and speed to market for new products. 5. Improved customer service Customer service is about perception and response. Having the ability to rapidly fulfil obligations requires the consistent and prompt support of suppliers, contractors and service providers. Restaurants such as McDonald’s have built their reputation based on efficient order replenishment, all supported by strategically positioned suppliers with the capability of rapidly fulfilling and shipping orders, minimising the on-hand inventory for McDonald’s whilst meeting or exceeding customer requirements. Consider a means to improve customer service and determine how to best align suppliers to support the initiative.

The impact of supply chain dimensions on customer satisfaction Recent research released in January 2012 analysed the effect of the supply chain on customer satisfaction. According to the hypotheses, supplier relationship management is divided into six dimensions: communication, cooperation, conformity, commitment, dependence and trust. These all have a direct relationship with customer satisfaction. Communication and dependence were shown to have the highest and lowest effect respectively on customer satisfaction. Results showed that there is a significant relationship between these supply chain dimensions and customer satisfaction. It was found that customer satisfaction increased when the supplier relationship increased. To achieve the effective management of supply chain relationships, suppliers and stores have to work together in a coordinated, integrated way with the observation of partnership principles, a high level of communication, information and dialogue. Goals should also be aligned. A closer look at the convenience industry supply chain Cutting supply chain costs remains a challenge for convenience store chains large and small. Dealing with primary wholesalers, multiple vendors and local foodservice providers are some ways convenience store chains are learning to grow more efficient, without sacrificing goods and services. Some of the ways they are doing this include improved reporting systems, maximising product turns, reducing

out-of-stocks and eliminating slowmoving SKUs to make room for potentially better sellers. “I think it gets back to the fact that you really have to analyse assortment in a very detailed way,” said Kit Dietz, president of Dietz Consulting in Huron, Ohio. “Embracing category management is important.” There are some big in-store opportunities available in candy and snacks, one of the highest margin and true profitability categories in store. “It’s very impulse driven. Most candy purchases are unplanned, so the candy aisle should be located in the highesttraffic area in the store.” Operators also need to make sure they have the best-selling SKUs. The top 50 SKUs, which only represent about six-tenths of 1% of all of the SKUs in the convenience channel, drive 32% of the business. “So make sure you have the proper focus on core assortments,” Dietz said. What Dietz has found in his extensive industry experience is that many retailers want a particular brand and end up carrying product duplications, which build cost into the system. “Sometimes one SKU is enough for a whole category,” he said. “They should focus on best-selling brands so they can satisfy consumers and understand what the impact can be on the total supply chain.” Not just price Many retailers also tend to concentrate on price rather than the total cost of acquisition, noted Steven Montgomery, president of b2b Solutions in Lake Forest, Illinois, USA. “Price is what they

FEBRUARY 2012 FMCG

“The most deadly sin is being focused on the lowest cost of goods rather than on how to sell more to the consumer” see on an invoice. Total cost includes all the elements of cost that go into a purchase. This could include cost elements such as terms, return policies, order quantities, delivery and a host of support services.” Focusing solely on price is a mistake, experts claim. “The most deadly sin is being focused on the lowest cost of goods rather than on how to sell more to the consumer,” Dietz said. “You can’t save your way to prosperity.” One of the best ways to remove cost from the supply chain is to control the number of vendors making deliveries to stores. This is an area 7-Eleven has been heavily studying of late. The results of a pilot programme the chain is running in California could have a significant impact on how goods are delivered to convenience stores across the US. “We have worked with retailers who have vendors with overlapping items,” Montgomery said. “One of our recommendations is to consolidate vendors whenever possible.” Benefits of self-distribution With 400-plus-stores Kwik Trip in LaCrosse in the US, operates its own distribution system. “Unlike a lot of other convenience store chains out there, one of our corner stones is controlling our own supply chain,” said Steve Wrobel, the company’s head of corporate communications and leadership development. Kwik Trip has the right size, volume and geographic locations to be successful with self-distribution. All of Kwik Trip’s stores are located in a three-state region – Wisconsin, Minnesota and Iowa, which allows the chain to distribute from its central warehouse in LaCrosse. While size matters, execution is just as important.

FMCG FEBRUARY 2012

Executives at Kwik Trip, according to Wrobel, are constantly working to introduce efficiencies to the system and thus cut costs. “Obviously we also watch our inventory turns carefully,” he said. “Our category management team reviews on a regular basis the movement of individual products.” Family Express in Valparaiso, US, operates 51 stores, yet owns and operates a new central distribution centre that controls and prepares fresh food items, baked goods and its growing line of private label products. Buy direct Family Express in Michigan, US, is a smaller chain producing big-time savings with its own distribution centre. “The most effective way we’ve cut costs is through buying direct,” said Russ Bolitho, distribution director for the 51-store marketer. “We lowered operating costs to less than what the distributors offered. We make sure that our delivery costs are in line, that we have our inventory turns in line and that we keep the cost of goods down for our stores based on buying direct.” Self-distribution also increases the opportunity to get a piece of additional marketing dollars. “There is a lot of promotional and discount money that is kept by the

distributors,” Bolitho said. “By going direct we are able to get a piece of that action, and it’s become a pretty good revenue source.” Category management help Whilst the convenience industry has matured well beyond where it was just 10 years ago, all retailers can use some help evaluating their category management practices. “Category management is absolutely critical. We have a limited amount of space in the convenience store, we have consumers who are primarily focused on instant consumption and there are products being ignored that can perform extremely well,” Dietz said. There are “significant gaps” in the best-selling SKUs in the marketplace, Dietz added. “That’s not to say that only independents are missing it; some of the big chains miss it as well. When it comes to the biggest opportunity to improve profitability, that comes from finding a distributor that is able to deliver high-quality planograms that are developed not only by looking at national data, but regional data, and from looking at individual retailers’ movement in the store. “It all comes down to having the right item for the consumer in the store and merchandising it the right way,” Dietz said. l

Erika Pacini is based in Melbourne, Australia. After graduating with a Bachelor of Business Marketing she travelled to New York where she interned on Wall Street working for a renowned marketing firm on an experiential marketing campaign for Coca-Cola. For the last six months she was a research consultant for the Australian Centre for Retail Studies at Monash University and more recently, consulting for the Australasian Association of Convenience Stores.

Sonny Bill Williams’ new campaign Star All Blacks second five-eighth Sonny Bill Williams has signed a personal sponsorship deal with Coca-Cola and will front in a television campaign for Powerade Fuel+. “Sonny Bill has had a fantastic year; we’re thrilled to have him as an ambassador for Powerade Fuel+. Sonny Bill embodies the ultimate athlete… endurance, power and strength; New Zealanders admire him for his athletic ability. He’s a perfect fit for the brand, and we’re delighted to have him on board,” says Delina Shields, marketing manager Stills, Coca-Cola Oceania. “Our research has found that active energy drinkers are looking for the new breed of energy drink so we’ve developed Powerade Fuel+ to meet this demand. Now consumers can choose an energy drink that has been scientifically developed especially for sports – in their

favourite flavours from the sports drink brand they trust.” The Powerade Fuel+ 15-second TVC went to air on December 16 and will run for the next 12 months. The campaign will also include a nationwide Adshel campaign. Powerade Fuel+ contains electrolytes and caffeine energy to give consumers a kick-start into their training, exercise and ‘on-field’ performance. Lightly carbonated, it is available in the two leading Powerade flavours Mountain Blast and Berry Ice. “We believe we have found a gap in the market and are confident that Powerade Fuel+ will create a solution within the energy drinks category,” adds Shields. Powerade Fuel+ is suitable for athletes at an amateur level through to an elite level and comes in a slimline 300ml can that can be found in the energy drinks fridge in stores nationwide. l

Milk, bread and a Gucci handbag please! A new concept at 7-Eleven stores in Korea is raising the stakes on impulse purchases – so much so that a customer could buy milk and a high-end Gucci handbag in one shopping trip. In Korea, the luxury goods market is one of the strongest sectors of the country’s economy. According to the Wall Street Journal, 7-Eleven is planning to offer luxury merchandise for a limited period after a successful trial period during the September Korean thanksgiving holiday, in which the convenience retailer sold eight Gucci product lines. Shoppers were able to order the products from catalogues inside the store. Although it has not been determined which luxury brand the chain will feature this year, the tactic reflects an increasing desire by retailers to tap into the strong consumer demand for high-end products in the Korean market. 7-Eleven sold 62 Gucci items during the September trial period, worth 58 million won (US$50,000). Sales were strongest in the city of Daegu, which has fewer luxury brand shops than Seoul. l

FMCG FEBRUARY 2012

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The year ahead Trina Snow looks at what Parliament might have in store. Trina Snow, executive director, NARGON.

As is usually the case under MMP, it took a while for the exact shape of the next Government to become clear despite National’s record-setting election night result. Once the special votes were counted, Prime Minister John Key was able to announce his new Cabinet, which includes both John Banks from Act and Peter Dunne of United Future. Three National MPs have also become new Ministers outside of Cabinet. John Banks has been appointed the Minister for Small Business and we hope he will be an active advocate for stores and other small businesses which can often be overlooked by politicians and officials. He also has the new role of Minister for Regulatory Reform, which NARGON believes has potential to reduce bureaucracy and red tape. However, it is important that any changes address the issues of small businesses and not just the larger enterprises. From an industry perspective, there are three areas of legislative change to watch for in 2012 and beyond. An important section of the National Party election manifesto was a series of further changes to employment law, particularly for young workers and around flexible working arrangements. Continuing as the Minister for Labour, Kate Wilkinson is likely to introduce quite quickly legislation establishing a Starting Out Wage. This is critical because the Government now accepts that the abolition of the Youth Wage in 2008 has cost thousands of young people the chance to work. While this was evident to our industry and why NARGON opposed the move, this Government now accepts Department of Labour research which shows up to 9000 jobs disappeared for 16 and 17 year olds. In its policy document, National says the Starting Out Wage will provide many young people with “an opportunity to gain skills, earn money, get the valuable work experience they need to compete in the open

FMCG FEBRUARY 2012

labour market and get work. It will also encourage employers to give a young worker a job, where they would have been unwilling to hire them on the Adult Minimum Wage.” While the exact shape of the legislation has not been announced, the policy states the Starting Out Wage will be set at 80% of the minimum wage and will be available to 16 and 17 year olds in their first six months of work with a new employer, and 18 year olds coming directly off designated benefits and some young people in industry training. Stores should be mindful that until the necessary legislation actually comes into force they need to comply with the current laws. The second new policy is to extend existing flexible working arrangements. Key proposals include allowing flexible working agreements without invoking a formal process, extending the right to request flexible work arrangements to all employees, removing the six-month period before an employee has the right to request a flexible working arrangement and removing the limits on the number of requests an employee can make for flexible working arrangements over a 12month period. Stores will need to carefully manage their obligations under these expected changes. One of the biggest changes this year will be the ban on tobacco displays which is scheduled to come into full force mid-2012 and which will have an impact on all stores selling tobacco products. The legislation passed last year, but attention will now focus on possible exemptions for certain stores and/or extensions to the implementation date. The Government has signalled it is concerned about the potential impact on smaller stores and the Ministry of Health will be consulting with NARGON and other industry bodies to mitigate any risks. In the meantime, stores are advised to plan to be ready to remove tobacco from sight by the current deadline of 23 July 2012. Parliament will likely pass the Alcohol Reform Bill at some point this year. While there may be further changes, it is likely that the right for small stores to sell beer and wine will be phased out progressively. It will certainly be near impossible to get new licences. This situation makes it even more important for all stores to ensure they fully comply with the Sale of Liquor Act and their licence requirements.

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New varieties A bright future, or just desperate? Keith Stewart investigates. It does not take that long to change the flavour of a national wine industry, and it may not be far in the future when viognier or gamay noir could be as much a part of New Zealand’s regional wine flavour as sauvignon blanc and pinot noir now are. It was not so long ago, a mere 30 or so years, when the sight of a bottle of sauvignon blanc wine on the shelf was rare indeed. Most wines that could be found that actually contained the sauvignon blanc variety on New Zealand shelves in 1980 would have been from France,

FMCG FEBRUARY 2012

and carried names like Pouilly Fumé or Château Olivier. Now over 80% of New Zealand’s wine production is in sauvignon blanc, be it dry, sweet or sparkling, and it can even be found as an RTD in Australia. Indeed, the only version of sauvignon blanc not yet released is red and it is only a matter of time before sauvignon blanc cider hits the market. So what chance a variety that nobody has yet heard of takes over swathes of the national vineyard? Slim chance, really, as even varieties such as viognier, which has made

for New Zealand wine some impact within both the wine making and drinking communities, has quite a leap to become even slightly mainstream. Even in Europe, where it is well established, viognier claims such a tiny chunk of Europe’s respectable vineyard land – it is less well known than it is amongst the young and thrusting talents of New Zealand’s wine industry. The next big thing It seems that it is no longer good enough to make the best chardonnay or pinot noir, what is wanted is recognition for introducing the ‘next big thing’ in terms of variety. So here at BWS we decided to have a quick look at what is currently

planted in the innovative section of our national vineyard, and what chances they have of being more than a passing interest to wine snobs. Top of the list of white varieties must be viognier, at least because there are a good number of producers now handling this variety and turning it into fairly decent wine. In Gisborne and Hawkes Bay it has made an impact for its sinew, muscle and pretty fragrance, enough for an estimated 204 hectares of productive vineyard to be in the ground for this coming vintage. However, even the best of these can tend towards being rather bottom heavy, with more than enough alcohol than is good for its balance Against top class chardonnay, riesling

or sauvignon blanc they struggle for consistency and complexity without the winemaker going completely over the top. Best option, probably, is as a co-fermentation variety to add elegance and fragrance to the already striking syrah wines that are being produced around the country. Of the other white varieties that could be contenders, none is being grown in large enough quantities for a fair assessment of their potential to be made, on the basis of what has been produced so far. It could be that the best theoretical options could actually lie with classics that we have had for a FEBRUARY 2012 FMCG

. . . it may not be far in the future when viognier or gamay noir could be as much a part of New Zealand’s regional wine flavour as sauvignon blanc and pinot noir now are. while but have yet to master, such as chenin blanc. Or perhaps in the onetime champion of all European white wine varieties, roussanne. A lot has been made of arneis, the much discussed “little rascal” variety from Northern Italy. Initial efforts show it to be pretty enough on the nose, with some charming fruit flavours, but so far the verdict must be charming rather than impressive, giving the impression that they will struggle to match the fragrance and character of good viognier, which has its nose well in front in likely arneis regions such as Gisborne and Hawkes Bay. There has also been plenty of support for grüner veltliner, the Austrian darling of New York and London. A wine bursting with delicate floral tones that has cast its magic over food matching aficionados in the most glamorous settings. Its star has risen in such publications as Decanter and the Wine Spectator, giving it credibility with New Zealand’s younger winemakers. Again the results in terms of wine quality have been underwhelming, even in the hands of Austrian born Herman Seifried who should know it well. Again some pretty smells, but not a lot more. No wonder few have actually planted much of it and there remains less than two hectares of producing vineyard around the traps. There is even less albarinho planted

FMCG FEBRUARY 2012

in New Zealand than there is grüner veltliner, but in the wetter parts of the North Island, its Atlantic-side origins in Iberia suggest its custardlike textures and suave manner could make it more likely to be successful here. Famous in Galicia in Northern Spain, it is considered to be the best of Spanish whites, and top labels fetch high prices in Madrid. So far only one New Zealand Albarinho has been made, by Coopers Creek from grapes grown in Gisborne in 2011, and on this example alone it is reasonable to expect a solid future for the variety here. Firm, with depth, hints of custard and attractive purity, it is certainly a wine worth following. While there is not a lot of activity in planting these new white varieties, with the singular exception of viognier, the case is different for red wine varieties. Two of these, gamay noir and montepulciano, have established a good track record in wines made with class and character. Leading the list of these must be montepulciano, a variety of Italian origin that has produced wines in regions as diverse as Marlborough, Waiheke Island and Hawkes Bay. All have impressive aromatic richness, warmth of flavour and length to be close to become a true sub-category of premium New Zealand winemaking, and lobby eloquently for a greater share of the nation’s vineyards to be committed to this variety.

Not far behind is tempranillo, another Iberian grape with plenty of potential. In the hands of Hawkes Bay winery Trinity Hill’s winemakers’ tempranillo has certainly made its point for serious consideration in the future. Flavour depth and texture are invariably impressive, and it also has that warm note that marks a certain convivial quality in the best red wines. With 12 productive hectares of vineyard it is surprising we have not heard more about gamay noir in this country. There is really only one wine that is worth consideration when discussing this variety here, and that is Te Mata Estate’s Woodthorpe Gamay Noir a Jus Blanc. Vibrant fruit and a cool demeanour make this one of the most striking and succulent wines in the country, and certainly one worthy of interest for future growing. Finally there is grenache, the variety which boasts the largest vineyard area on earth. While long demeaned as a workhorse of cheap table wine the world over, it is also, as both France and Spain continue to show, father of some truly toothsome, high class, memorable reds. Perhaps its lavish fruit and easy, comfortably flavoursome character could lay the groundwork for New Zealand reds with grunt that won’t break the bank. So there you have it. Try viognier, montepulciano and gamay noir from any variety of winemakers and see what is different about these grapes and what has some winemakers predicting a bright future for them. l

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

Best Merlot in Australasia made in NZ Crossroads Vineyard Selection Kereru Road Merlot Cabernet 2009 has been named Merlot of the Year in Australia and New Zealand as part of 2011 Winestate Wine of the Year Awards. The Hawke’s Bay blend was awarded the Transtherm Trophy with the judges commenting that the wine was “powerful, fleshy, very rich and supple, deliciously lush and smooth with ripe blackcurrant, plum and spice flavours”. Chairman of Crossroads Winery, Peter Yealands, commented on the award saying: “The judges considered more than 1500 wines when awarding the Transtherm Trophy. This single vineyard wine reflects its Hawke’s Bay origin and we’re very proud of how it stood up against its trans-Tasman counterparts.” Each year, Adelaide-based wine buying guide Winestate compiles a list of top scoring wines from panel tastings throughout the year. These wines are then judged against each other to find the ‘Winestate Wines of the Year’. Crossroads Winery was founded 20 years ago with a mission

to create memorable wines from great vineyards. The Crossroads Winery “home vineyard” is located deep in the land of Hawke’s Bay where vines thrive in diverse soils, from the renowned Gimblett Gravels to the cool inland slopes of the Ngaruroro River. The deep layer of ancient river silt delivers wonderful aromatic qualities and the Gimblett Gravels provide depth, structure and intensity. With a focus on small-scale winemaking, the winery’s single vineyard ‘Vineyard Selection’ wines are handmade and award winning. l

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Best of Ireland St Patrick’s Day is marked on March 17, 2012 – and not just in Ireland but also all over New Zealand. BWS found some tasty tipples to celebrate the occasion. The Hot Irishman Company is a producer of innovative, authentic and premium Irish Whiskey and Liqueur brands based deep in the countryside in Carlow, Ireland. The company was formed by husband and wife team Bernard and Rosemary Walsh back in 1999. The Walshs have been in Ireland for almost 1000 years and the Walsh clan name is the biggest clan name in Ireland today. They pride themselves on being one of a few remaining small independent family-owned drinks producers in Ireland. Appealing to both the Whiskey aficionado as well as the main stream, the company boasts a very unique and extensive product range consisting of a premium Irish Coffee, an Irish Cream Liqueur, various Irish Whiskies, including Irishman 70 which is one of the highest rated Irish Whiskeys in the ‘Whisky Bible 2012’ (93 points), and is topped off by a bottled mulled wine. With a brand name that is instantly recognisable as Irish, authentic and credible, the Walsh’s aim is to use nothing but the best of ingredients and not to sacrifice the quality. Bernard Walsh proudly says: “All our products are award winning, both at home in Ireland

FMCG FEBRUARY 2012

and internationally, and we are delighted to be able to introduce our brands to our friends in New Zealand.” Exporting to over 30 overseas markets including USA, UK, France, Germany, Holland, Belgium, Portugal, Spain, Poland, Denmark, Russia, Malaysia, Australia and South Africa, the company has now added New Zealand to this list over the past 12 months, with Hancocks as its exclusive importer into the country. Jameson launches limited edition for St Patrick’s Day Paul Daly, internationally acclaimed Irish designer, has produced a limited edition bottle for Jameson Irish Whiskey ahead of St Patrick’s Day 2012. The bottle marks one of Ireland’s most celebrated days and was inspired by the legendary Celtic illustrations in the historic Book of Kells. This heritage, together with Daly’s contemporary artistic eye has resulted in a truly unique design, and the limited number of bottles means this edition is a definite eye-catcher and collector’s item. The special limited edition Jameson bottle designed by Paul Daly is available in New Zealand from leading liquor retailers from mid-February – RRP $62.99.l

best of Irelan d JAMESON IRISH WHISKEY Jameson Irish Whiskey is the largest selling Irish whiskey in the world, established by John Jameson in 1780. Triple distilled and twice as smooth, Jameson is matured in bourbon and sherry casks for five to seven years. It’s a mellow, pot still whiskey with toasted wood and vanilla undertones. Smooth, sweet wood and nutty notes.

MAGNERS ORIGINAL IRISH CIDER 4.5% ABV From the original recipe perfected since 1935, Magners is patiently vat matured to create the unique and refreshing taste of Ireland’s favourite cider. This is a full-bodied and well-rounded premium apple cider, which is gently balanced between acidity and sweetness. It delivers both length and fruit. Its long, crisp taste makes it the ultimate thirst quencher.

RRP: $49.99 per 700ml Pernod Ricard New Zealand Phone: 0800 655 550 customer.service.nz@pernod-ricard.com www.jamesonwhiskey.co.nz

RRP: $16.99 per 330ml 4pk RRP: $7.49 per 568ml (pint) Hancocks Wine, Spirit & Beer Merchants Freephone: 0800 699 463 www.hancocks.co.nz

MAGNERS PEAR CIDER 4.5% ABV Crafted from 100% quality pear juice, Magners Pear Cider has a light pear aroma, embraced with a floral scent of elderflower and subtle hint of honey dew and kiwifruit. Bring the pure, natural taste of pears straight to your glass and enjoy the silky crisp, delicate and refreshing finish that makes for such easy drinking… a very sessionable cider.

GLENMORE BLEND OF IRELAND 40% ABV A unique blend of the finest Irish whiskey and pure grain spirit. Rich in aroma this special blend has truly connected with the spirit of Ireland. Perfect for mixing and blending your favourite whiskey cocktails. Summer sunset in colour with notes of dried cereal, almonds and green apple. Not for the faint hearted, this whiskey and grain spirit blend is ‘fully loaded’.

RRP: $16.99 per 330ml 4pk RRP: $7.49 per 568ml (pint) Hancocks Wine, Spirit & Beer Merchants Freephone: 0800 699 463 sales@hancocks.co.nz www.hancocks.co.nz

RRP: $54.99 per 1000ml Hancocks Wine, Spirit & Beer Merchants Freephone: 0800 699 463 sales@hancocks.co.nz www.hancocks.co.nz

THE IRISHMAN SUPERIOR IRISH CREAM 17% ABV Produced in Ireland by the Walsh family (Bernard and Rosemary Walsh), made to the same age old Irish cream liqueur recipe and using the finest luxurious Irish Cream, 100% Irish whiskey with a hint of vanilla and toffee. Like Irish Cream, the Walsh’s have deep roots in Ireland. This rich tapestry that is the Walsh legacy has filtered through almost 1000 years to this day. Best served straight, chilled over ice.

THE IRISHMAN 70 IRISH WHISKEY 17% ABV One of the highest rated Irish Whiskeys in the ‘Whisky Bible 2012’ (93 points). A classic, extra smooth Irish whiskey. The Blend of Old Pot Still Irish Whiskey with 70% malt personally selected by Bernard Walsh is triple distilled using the soft flowing waters of County Cork and mellowed in Bourbon Casks, representing perfection in Irish Whiskey Blending. Autumn gold in colour with a good nose of pepper and spice.

RRP: $32.99 per 700ml Hancocks Wine, Spirit & Beer Merchants Freephone: 0800 699 463 sales@hancocks.co.nz www.hancocks.co.nz

RRP: $62.99 per 700ml Hancocks Wine, Spirit & Beer Merchants Freephone: 0800 699 463 sales@hancocks.co.nz www.hancocks.co.nz FEBRUARY 2012 BWS

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Amcor Australasia’s new world-class manu facturing plant opens for business in Auckland.

ill in legraph H ford at Te trance with w ra C ff o Owner Ge s revamped the en ha Hastings nts. edible pla l u rf u lo o c

Has your team been part of a charity event, opened a new factory, or dreamed up a colourful promotional activity? Send us your favourite photo and go in the draw to win a gift pack containing Du’it Foot & Heel Balm, Du’it Tough Scrub and Du’it Tough Hands (worth more than $40). Just email your high res image with a caption and your contact details to: editor@fmcg.co.nz

‘Cupc a Chels ke Master c ea we bsite lass’ for 10 comp etition lucky winne rs.

DIARY 2012 FEBRUARY

APRIL

29 jan-1

ISM – International Confectionery Trade Fair

Cologne, Germany

7-9

CHINA INTERNATIONAL GREEN FOOD & ORGANIC FOOD EXHIBITION

www.ism-cologne.com

China International Exhibition Centre (CIEC) Beijing, China

8-10

FRUIT LOGISTICA

Berlin, Germany

www.fruitlogistica.com

15-18

BIOFACH

Nuremberg, Germany

www.biofach.com

4-6

MAY 9-11

MARCH PROWEIN

Düsseldorf, Germany

www.prowein.de

www.ciec-expo.com

SIAL CHINA

Shanghai, China

www.sialchina.com

9-11

SIAL CANADA

Montreal, Canada

www.sialcanada.com

10-12

BAKERY CHINA

Makuhari Messe, Tokyo, Japan

International Trade Fair for the Baking and Confectionery Industry Shanghai, China

www3.jma.or.jp/foodex/en/

www.bakery-china.de

8-10

PRIVATE LABEL & FMCG 2012

11-13

THE FOOD SHOW

CNR Expo Centre Istanbul, Turkey

Westpac Stadium, Wellington

www.foodshow.co.nz

www.cnrprivatelabel.com/ 19-20

GLUTEN FREE FOOD SHOW

NARGON SUPPLIER AWARDS

Amora Hotel, Wellington

Brisbane Convention & Exhibition Centre South Brisbane, Queensland

www.nargon.co.nz

www.eventseye.com

27-30

ANUGA FOODTEC

24-25

CLEAN NZ

International trade fair for food and drink technology Cologne, Germany

Ellerslie Convention Centre, Auckland

www.cleannz.co.nz

www.anugafoodtec.com 24-26

BIOFACH CHINA

28-29

WORLD RETAIL CONGRESS ASIA PACIFIC 2012

Beijing, China

International Organic Trade Fair Shanghai, China

www.worldretailcongressasia.com

www.biofach-china.com

6-9

FOODEX JAPAN

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

Craisins® Dried Cranberries are available in three delicious flavours.

A wholesome snack and also a creative ingredient for both sweet and savoury dishes.

The transformation of rail

Greener. Our new locomotives can haul loads of up to 2,000 tonnes. That is the equivalent of about 80 trucks off our roads. We thought you would be happy about that.

We’re on the move. We’re forging ahead in a new direction for rail freight in this country. That means casting off the shadows of the past and emerging with new technology. New, more powerful locomotives. Wagons that carry bigger payloads. Software that manages and controls the efficient timing of trains. We’re building stronger relationships with our customers to create more efficient transport networks. We’re investing in rolling-stock and equipment to create a sustainable rail network for future generations. To find out how our new direction can benefit you, text ‘rail’ to 226.

To find out more visit the freight hub at

KIR 9634