FMCG March 2012 by mediaweb

incorporating

9 421902 251016

MARCH 2012 Volume 18 No 2 $9.15

THE BUSINESS OF MANUFACTURING • LOGISTICS • SUPERMARKETING

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*Source: Nielsen Grocery Data, Current MAT W/E 01.01.2012.

incorporating

The transformation of rail

9 421902 251016

MARCH 2012 Volume 18 No 2 $9.15

THE BUSINESS OF MANUFACTURING • LOGISTICS • SUPERMARKETING

fmcg . co . n z

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foo d ne w s . co . n z

GSK IS THE FASTEST GROWING MAJOR COLD & FLU MANUFACTURER AT +18%.* By listening to consumers GSK has identified that there are 4 key groups of shoppers, each seeking a different solution. Therefore stocking a variety of trusted brands and a full range of symptom solutions will ensure shopper needs are met.**

COLDREX is the fastest growing major Cold & Flu brand, well ahead of the category at +24%. PANADOL Cold & Flu in double digit growth at +11%. *Source: Nielsen Grocery Data, Current MAT W/E 01.01.2012. **Source: Project Le Carre, ANZ Bread and Butter Research, December 2010.

TOP 3 COLD & FLU CATEGORY SKU’S 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.

GSK COLD & FL U

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.

PANADOL COLD & FLU MAX +DECONGESTANT CAPLETS

To find out more visit the freight hub at

KIR 9634

www.kiwirailfreight.co.nz *Source: Nielsen Grocery Data, Current MAT W/E 01.01.2012.

COLDREX COUGH, COLD & FLU TABLETS

COLDREX COLD & FLU PLUS CAPLETS

DIARY MARCH

10-12

BAKERY CHINA

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

www.bakery-china.de

www.jma.or.jp/foodex/en/

11-13

THE FOOD SHOW

Westpac Stadium, Wellington

8-10

PRIVATE LABEL & FMCG 2012

www.foodshow.co.nz

CNR Expo Centre Istanbul, Turkey

19-20

GLUTEN FREE FOOD SHOW

www.cnrprivatelabel.com/

Brisbane Convention & Exhibition Centre South Brisbane, Queensland

NARGON SUPPLIER AWARDS

www.eventseye.com CLEAN NZ

4-6

PROWEIN

Düsseldorf, Germany

www.prowein.de

6-9

FOODEX JAPAN

Makuhari Messe, Tokyo, Japan

Amora Hotel, Wellington

www.nargon.co.nz

24-25

Ellerslie Convention Centre, Auckland

27-30

ANUGA FOODTEC

www.cleannz.co.nz

International trade fair for food and drink technology Cologne, Germany

24-26

BIOFACH CHINA

www.anugafoodtec.com

International Organic Trade Fair Shanghai, China

28-29

WORLD RETAIL CONGRESS ASIA PACIFIC 2012

www.biofach-china.com

Beijing, China

www.worldretailcongressasia.com

JUNE 17-19

APRIL 7-9

CHINA INTERNATIONAL GREEN FOOD & ORGANIC FOOD EXHIBITION

Beijing, China

www.ciec-expo.com

Media

May

Jun

Jul

Aug

Media

NEW TVC

Radio

Digital

OOH

Outdoor

COLDREX range contains combinations of paracetamol, phenylephrine, caffeine or guaiphenesin. Please refer to pack for active ingredients and strengths and dosage information. Use for the temporary relief of cold, flu or sinusitis symptoms. Always read the label. Use only as directed. If symptoms persist see your healthcare professional. GlaxoSmithKline Consumer Healthcare Auckland, New Zealand. COLDREX is a registered trade mark of GlaxoSmithKline group of companies. *AC Nielsen Grocery data: Cold & Flu Product Ranking, Value Sales YTD to W/E 01.01.2012.

Shanghai, China

www.sialchina.com

9-11

May

Jun

Jul

Aug

PANADOL range contains combinations of paracetamol and phenylephrine. Please refer to pack for active ingredients and strengths and dosage information. Use for the temporary relief of cold, flu or sinusitis symptoms. Always read the label. Use only as directed. If symptoms persist see your healthcare professional. GlaxoSmithKline Consumer Healthcare Auckland, New Zealand. PANADOL is a registered trade mark of GlaxoSmithKline group of companies. *AC Nielsen Grocery data: Cold & Flu Product Ranking, Value Sales YTD to W/E 01.01.2012. TAPS PP1965

Montreal, Canada

www.sialcanada.com

FOODSTUFFS NATIONAL GROCERY EXPO

Claudelands, Hamilton

www.foodstuffs.co.nz

SEPTEMBER 25-27

SIAL CANADA

www.finefoodnz.co.nz

29-30

SIAL CHINA

ASB Showgrounds, Auckland

AUGUST

MAY 9-11

FINE FOOD NEW ZEALAND

FOODTECH PACKTECH

ASB Showgrounds, Auckland

www.foodtechpacktech.co.nz

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

Increase your sales this Easter with Cinderella Dried Fruit Units per Store per Week

Dollar Ranking in Dried Fruit TKA

Dollar Growth on YA%

Cinderella 400g Sultanas

32%

Cinderella 400g Camel Dates

21%

Cinderella 400g Raisins

19%

Cinderella 150g Cranberries

28% Source: Aztec, TKA, MAT 22/01/12

DIARY MARCH

10-12

BAKERY CHINA

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

www.bakery-china.de

www.jma.or.jp/foodex/en/

11-13

THE FOOD SHOW

Westpac Stadium, Wellington

8-10

PRIVATE LABEL & FMCG 2012

www.foodshow.co.nz

CNR Expo Centre Istanbul, Turkey

19-20

GLUTEN FREE FOOD SHOW

www.cnrprivatelabel.com/

Brisbane Convention & Exhibition Centre South Brisbane, Queensland

NARGON SUPPLIER AWARDS

www.eventseye.com CLEAN NZ

4-6

PROWEIN

Düsseldorf, Germany

www.prowein.de

6-9

FOODEX JAPAN

Makuhari Messe, Tokyo, Japan

Amora Hotel, Wellington

www.nargon.co.nz

24-25

Ellerslie Convention Centre, Auckland

27-30

ANUGA FOODTEC

www.cleannz.co.nz

International trade fair for food and drink technology Cologne, Germany

24-26

BIOFACH CHINA

www.anugafoodtec.com

International Organic Trade Fair Shanghai, China

28-29

WORLD RETAIL CONGRESS ASIA PACIFIC 2012

www.biofach-china.com

Beijing, China

www.worldretailcongressasia.com

JUNE 17-19

APRIL 7-9

CHINA INTERNATIONAL GREEN FOOD & ORGANIC FOOD EXHIBITION

Beijing, China

www.ciec-expo.com

Media

May

Jun

Jul

Aug

Media

NEW TVC

Radio

Digital

OOH

Outdoor

Shanghai, China

www.sialchina.com

9-11

May

Jun

Jul

Aug

Montreal, Canada

www.sialcanada.com

FOODSTUFFS NATIONAL GROCERY EXPO

Claudelands, Hamilton

www.foodstuffs.co.nz

SEPTEMBER 25-27

SIAL CANADA

www.finefoodnz.co.nz

29-30

SIAL CHINA

ASB Showgrounds, Auckland

AUGUST

MAY 9-11

FINE FOOD NEW ZEALAND

FOODTECH PACKTECH

ASB Showgrounds, Auckland

www.foodtechpacktech.co.nz

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

Increase your sales this Easter with Cinderella Dried Fruit Units per Store per Week

Dollar Ranking in Dried Fruit TKA

Dollar Growth on YA%

Cinderella 400g Sultanas

32%

Cinderella 400g Camel Dates

21%

Cinderella 400g Raisins

19%

Cinderella 150g Cranberries

28% Source: Aztec, TKA, MAT 22/01/12

4 6

contents

Up Front

MARCH 2012

Editor’s note Industry news

Category checks 18 Chocolate & confectionery 24 Breakfast cereals 30 OTC medicines

Regulars

10 Nargon

Reducing food waste

Fresh and local

In season

Feature

Highlights from ISM 2012

33 Health & beauty aisle

Cosmetics growing fast

34 What’s Hot

New products in store

41 Subscription form 54 Snap

Spotted out and about

65 Diary

Your guide to upcoming industry events

OUR COVER Coldrex is supported by a substantial media campaign, showing shoppers that they can ‘Fight Back’ when a cold or flu strikes.

contents MARCH 2012

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

36 Grocery business news 38 Feature

Green campaigns

40 FGC

Katherine Rich considers sugar tax and obesity in New Zealand

42 Recruitment 44 Merchandising & planograms

Convenience store and oil channel updates

48 Feature

Moreish Snacks

50 C-store industry news 52 Nargon

Trina Snow looks at minimum wages

53 Directory 58

56 Feature

The rise and rise of organics

58 BWS industry news 59 Top wines for Easter

Over 2.5 million customers pass through 160 Countdown supermarkets every week, and we can get you right in front of them. Thatâ&#x20AC;&#x2122;s where 62% of purchase decisions are made, so thatâ&#x20AC;&#x2122;s where you have to be. If you want to see your products move faster, cut out the middle media and get more bang for your marketing buck. For all your In-store media needs call Phil Neely now on 021302459 or visit hypermedia.co.nz

e ditor ’s note Vol 18

No 2

march 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

Printing & Pre-press PMP Print

Publisher Used on a white background

Mediaweb Limited PO Box 5544 Wellesley Street, Auckland 1141 115 Newton Road, Eden Terrace, Used1010 on a black background Auckland Phone 09-529 3000, Fax 09-529 3001 www.mediaweb.co.nz

Growth potential and innovations Have you seen the stunning new glass designs from O-I yet? With internal embossing for wine bottles they offer a truly novel approach to wine branding and packaging. Clever innovations excite me, from pomegranate-flavoured Craisins to the compact Janola tablet formulation that is bound to reduce freight costs and storage space throughout the supply chain. Monitoring packaging technology and new product developments is vital in our industry. In this issue of FMCG we bring you some of the highlights from ISM 2012 in Cologne, where chocolates with spices, allergy-friendly confectionery and products with stevia were among some of the top trends. Find out more about ISM and see what New Zealand chocolate and confectionery suppliers have in store for us on pages 14-23. With Easter and Mother’s Day on the horizon, this category is bound to thrive. Also of note on the international scene, energy drink consumption surged by 14% in 2011 to 4.8 billion litres globally, reports leading food and drink consultancy Zenith International. Average growth over the past five years has been 10% a year. Closer to home, the cosmetics category is estimated to be worth more than $100 million to the total market in NZ, but

less than 7% of that is currently serviced by the grocery trade. Growth potential galore! The same applies to over-the-counter medicines, with plenty of growth potential for ‘Hero’ products, such as the one shown on our cover. Cold and flu season is approaching soon. FMCG brings you the stories behind best sellers and NPD in our monthly category checks. Also in this issue, FGC chief executive Katherine Rich considers the idea of a sugar tax; NARGON executive director Trina Snow examines minimum wages, Mark Gavin explains the legalities of ‘Green’ campaigns and Keith Stewart takes a close look at organic wines. If it is merchandising or planogram advice you need, then turn to pg 44-46 for the latest from the experts in this field. Where would our industry be without the hard work of merchandisers and suppliers behind the scenes… they don’t often get a mention. However, the NARGON Supplier Awards in Wellington will acknowledge some of the best suppliers in NZ and the FMCG team will be there to support NARGON as official media partner. If you are coming to the Awards too then please join me for a drink and a chat!

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

Tamara Rubanowski editor@fmcg.co.nz

CHAMPION OF BEAUTY 1. Main driver of the Beauty Category*

+2.4%

+10.6%

Market

L’Oréal

• Fastest growing brand • 4 times that of the market * Beauty Market: Aztec Grocery FY 2011: Beauty category: haircare, haircolour, skincare (male+female), hand and body, cosmetics.

†

2. The best brands as voted by consumers

† In December 2011, ACP Media group asked their readers to vote for their favourite Beauty products. More than 6000 readers from Woman’s Day, CLEO, Good Health, NEXT, Fashion Quarterly, The Australian Women’s Weekly voted and have chosen:

BEST ANTI-AGEING PRODUCT L’Oréal Paris Revitalift Day Cream

BEST HOME HAIRCOLOUR Garnier Nutrisse

BEST BLUSH Maybelline New York Fit Me

SPECIAL AWARD by Beauty Editors

BEST SHAMPOO L’Oréal Paris Elvive Colour Protect

BEST MASCARA Maybelline New York Great Lash

BEST INNOVATION PRODUCT Garnier Miracle Cream Perfector

Thanks for your support. In 2012, L’Oréal will again drive the growth of the Beauty category and offer New Zealanders the best innovations.

news New World Metro opens in Auckland’s CBD New World Metro opened on 14th February at 125 Queen Street, in the heart of Auckland city. The 1324 square metre supermarket boasts a wide range of fresh produce and deli items, fully stocked butchery and seafood departments, freshly baked bread, and a variety of ready-to-go meal options to cater to inner-city workers and residents alike. Overseas trends show that urban shoppers tend to shop daily instead of weekly and purchase smaller amounts each time, while expecting high quality produce, and natural and prepared foods. New World Metro owner-operator Harry Chawla says he’s confident that customers will be “blown away” by the quality of the supermarket, and will include a visit to the store as part of their daily routine. “Whether it’s a coffee and muffin for breakfast, a freshly made hot ham roll for lunch, or a gourmet ready-meal for dinner, we’ll have what they need at New World Metro. It’s perfect for people wanting to grab some last minute groceries for dinner as well. From prime cuts of sirloin steak, to snapper unloaded from the fishing boat that morning, we have the freshest and highest quality products you’ll find in the CBD,” says Chawla. New World has a proven record in catering to inner-city supermarket shoppers, with two successful metro-style stores already well established in the Wellington CBD area. Foodstuffs Auckland managing director Murray Jordan says New World’s unique expertise in metro-style supermarket retailing, its focus on fresh produce, its exceptional customer service, and the 100 percent locally owned and operated store model, gives them a unique advantage over competitor offerings. “Inner city shoppers are actually quite different to our usual suburban customers. Our research shows that over 74% are renters, and half are between the ages of 20 and 29. Four years ago there were 84,550 workers in the CBD, and in another four years resident numbers are expected to grow to over 31,000, so it’s certainly an important customer base for us. “In 2003, a survey conducted by the Auckland City Council found that 49 per cent of inner city residents considered the availability of supermarkets in the area needed improvement, so we’ve definitely come a long way since then,” concludes Jordan. New World Metro is located in the basement of the former BNZ tower building and will be open Monday to Friday 7am to 10pm, Saturday and Sunday 8am to 10pm. l

FMCG march 2012

(L to R) Mayor Len Brown with Foodstuffs Auckland Property acting GM Tony Catton and New World Metro owner Harry Chawla.

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

6th

February 13th 20th

27th

5th

March 12th 19th

April

26th

2nd

range’em… your customers will love’em.

9th

16th

23rd

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

news New MD for Heinz Wattie’s Michael Gibson has been appointed managing director of Heinz Wattie’s effective immediately. He was formerly chief operating officer. The appointment was announced by Nigel Comer, regional CEO for HJ Heinz in Japan, Australia and New Zealand, who relinquishes the role of MD Heinz Wattie’s. A qualified chartered accountant, Gibson has been with the Wattie’s Heinz Wattie’s MD businesses for over 22 years, initially Michael Gibson. joining Wattie’s Frozen Foods. He moved through the organisation holding a series of increasingly senior finance appointments. He was appointed COO in April 2010 from his position as finance director. Comer said: “Michael has long been a senior member of Wattie’s leadership team, and I have had the pleasure of working with him during periods of both remarkable growth and economic challenge. “Michael will lead Heinz Wattie’s through the next phase of its

growth, which includes the successful relocation of production from Australia announced last year – tomato sauce, ketchup, ready meals and beetroot.” Gibson welcomes the opportunity to lead the talented and dedicated team at Heinz Wattie’s, a team which has been at the very core of the business’ success. Born in South Africa, he holds a Bachelor of Commerce and a Certificate in Accounting from the University of Cape Town. He lives in Auckland with his wife Debbie, a New Zealander, and their two children. Heinz Wattie’s has its head office in Auckland and operates processing facilities in Hawke’s Bay (two plants) and Canterbury. l

Did you know . . . Wattie’s is one of the largest food brands in New Zealand supermarkets. In total the company has a workforce of 1800 employees including seasonal workers. It was founded by Sir James Wattie in 1934.

Foodstuffs’ lucky Lotto stores The New Zealand Lotteries Commission named the Tararua district the luckiest district in New Zealand for 2011, and Manukau PAK’nSAVE was the Lotto retailer which sold the most prizes last year! Manukau PAK’nSAVE has taken the top spot in Lotto’s “Top Ten Retailers of 2011 – Lotto Family & Big Wednesday Total Winners (All Divisions)” table. Last year, the Manukau store saw a grand total of 81,920 Lotto winners, making the store the luckiest in New Zealand in terms of number of Lotto wins, for the second year in a row! PAK’nSAVE Riccarton and PAK’nSAVE Dunedin also appeared in the top ten stores with sixth and seventh spots respectively. The top individual prize went to the Dannevirke New World (with a prize of just under $18 million).

FMCG march 2012

The Waikanae Beach and Murupara Four Square stores also made it into the top five big wins of 2011, with prizes of $15.6 million and $12 million each. As far as districts go, the title of ‘Luckiest District in New Zealand for 2011’ goes to Tararua, just east of Palmerston North. A Lotto spokesperson said: “Over $400 million was won in prizes on Lotto (which includes Strike and Powerball) and Big Wednesday in 2011, with 224 First Division prizes won around the country. “More importantly, we transferred a record $183 million to the NZ Lottery Grants Board last year, taking total transfers to over $3 billion since Lotto began in 1987 – which provides funding for sport and recreation, arts and culture, and community services throughout New Zealand.” l

n ews Golden anniversary for ENZAFOODS A company credited with revolutionising the apple industry by creating a market for fruit that used to be “mopped up as rubbish” has turned 50. Johnny Appleseed’s managing director John Paynter says ENZAFOODS’ innovation has meant growers can prosper because they’ve created a growing market for second grade fruit that can’t be exported. “ENZAFOODS is a world leader in the international juicing market and should be congratulated on 50 successful years in business,” he said. New Zealand’s largest apple processing company, ENZAFOODS, has launched into its processing season celebrating From R to L: Craig Foss (Local Hawke’s Bay MP) – Jon Marks (ENZAFOODS GM) and Eric Rush (owner operator NW Browns Bay). 50 years in business and the opening of its new $4 million processing line This year, ENZAFOODS will process in Hastings. 110,000 tonnes of apples, pears, The new line at its Hastings factory, purpose built to produce carrots, berries, kiwifruit and feijoas, premium fruit products, will create up to 30 new jobs bringing into juices, juice concentrates, purees the workforce to over 150 during the season. and diced and sliced products, ENZAFOODS is now injecting an estimated $40 million into supplied into industrial, food service, the economies of Hawke’s Bay and Nelson, and providing more hospitality and retail markets in profitable contracts to growers for second grade fruit. New Zealand, Australia, Japan, Korea, General manager Jon Marks says by pureeing and dicing apples, Southeast Asia and the USA. l the company has created huge demand for premium fruit products under the FreshFields brand and is delivering profits back to growers. Did you know . . . “We’ve enjoyed tremendous growth, development and The ‘Fresh Up’ mini can was launched in 1967 and the first innovation, strengthening New Zealand’s international cloudy apple juice concentrate was produced in Hastings in reputation as a premium processor of both fruit and 1986 for the Japanese market. vegetables.”

24-25 May 2012 Ellerslie Event Centre, Auckland

Visit www.cleannzexpo.co.nz or call 0800 451 590 Supported By

Media Partner

march 2012 FMCG

n a rgo n

Reducing food waste Simple changes can help the planet, finds Trina Snow. Trina Snow, executive director, NARGON.

The Christmas holiday season in New Zealand is traditionally a time for plenty of eating, drinking and socialising. One of the unwanted by-products of the festive season however is an increase in food waste – and we already have an unenviable record in this area. In 2011, a staggering 1.3 billion tons of edible food was lost or wasted globally. Of particular concern was the fact that total food waste by consumers in industrialised countries (222 million tons) was almost equal to the entire food production in sub-Saharan Africa (230 million tons). In New Zealand, it is not so much about losing a harvest or critical supply systems breaking down, but about customers buying food and later just throwing it away. This is an issue with significant environmental and economic repercussions. For Kiwi households, it is estimated that the average family throws out at least $500 worth of food every

In 2011, a staggering 1.3 billion tons of edible food was lost or wasted globally. year, a figure which puts us top of the list in the OECD. Its calculations show we each produce more food waste than most others. It is one leadership mantle we should be ashamed to hold.While accurate data is often hard to gather, we almost certainly waste comparable amounts of food to Britain and Australia, and only marginally less than America. While we rightly pride ourselves on our green credentials, high recycling rates, and use of reusable shopping bags, food waste continues largely unabated. Journalist Kim Knight summed it up when she wrote “imagine counting out $500 of your hard-earned cash, a soft wad of tens, twenties and fifties, and throwing it straight in

FMCG march 2012

the rubbish bin. You’d take it as a sign of madness. Yet that’s the amount of food each of us bins every year. Recycling plastics, paper and glass has become second nature, but we largely ignore food waste, possibly because we have become used to the excess that has been built into the food production and retail cycle.”

Sainsbury’s idea British supermarket giant Sainsbury’s has come up with a simple idea which could make a real difference. Market research shows that most British shoppers believe that if they want to safely put food into the freezer it has to be frozen on the day of purchase. The current labelling regime reinforces this belief by advocating that customers “freeze on day of purchase”. Sainsbury’s has decided to alter the advice on the packaging of appropriate items by changing it to “freeze food as soon as possible, up to the product’s use-by-date”. According to Beth Hart, Sainsbury’s head of product technology for fresh and frozen goods, the ‘freeze on day of purchase’ advice needs to be changed as there is no food safety reason why it cannot be frozen at any point prior to the use-by-date. The company’s research showed that around 60% of customers regularly freeze food, but the vast majority of them do so only on the day of purchase. By changing the packaging and customer’s conservative mindsets, Sainsbury’s believe they can “help stop over-cautious shoppers from throwing away up to 800,000 tonnes of perfectly good food each year”. The scheme is getting a positive reception from environmental and business groups. Andrew Parry, consumer food waste prevention manager at WRAP (Waste and Resources Action Plan), said, “changing the guidance to freeze before the use-by-date is a welcome move. Now we can all look in our fridges and know that we can freeze most items which are about to go out of date and enjoy them at a later time. In doing so we can expect to reduce the amount of out-of-date food we throw away, which will in turn save us all money.” A similar scheme is worth considering in New Zealand. Stores have a role in helping people reduce food waste as much as possible, either through this approach, or other changes. NARGON would encourage shops to be innovative in developing waste minimisation techniques. It is the little things which can make the biggest difference.

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

POULTRY Best priced chicken will always be barn raised and still has a large following; however more and more consumers are looking to free range chicken which is now readily available from the larger producers. Shoppers at the higher end are often looking for something a little more exclusive so check out the organically farmed free range chicken from Rolling Hills. Duck portions make interesting additions to a poultry line.

FISH IN ITS PRIME Corn and new season kumara. Farmed venison, beef and fat lamb. Blue cod, snapper and tuna; squids and crabs.

COMING IN Red cabbage and Brussels sprouts. New season pears, apples, feijoas and Kiwi kiwifruit. Wild fungi and the first truffles if we are lucky and rich. And best of all those wonders from the Deep South, mutton birds and Bluff oysters.

GOING OUT Our apricots, nectarines and peaches. New Zealand strawberries and beans.

SHOT TO BITS Cherries and asparagus.

FMCG FEBRUARY 2012

With the settled weather the inshore fisheries have had a field-day, however be aware that this could mean the quota for some species may run out earlier this year. The main snapper season will be about over by April and with plenty in the markets this month though the price is still a bit steep, blame the Aussies. It is the same for gurnard and sole - plenty around but the price is up. Tarakihi is in the middle of its main catching season so you can expect plenty of this good all round fish in the market. Trevally and Kahawai are also plentiful at this time of year; and are greatly underrated inexpensive fish species. Flounder are in good supply until late autumn and reasonably priced. Kingfish in nice condition have been in the market recently and likely to be around for the next month or two. Tuna quality is tops right now and at a lower price than snapper. The Pacific oyster season is hopefully going to be back on track after the spat. These shellfish just get fatter and fatter from now on but there may very well be a shortage in the middle of the season (blame herpes).

Greenshell mussels are fat at this time of year, inexpensive and with the best meat to shell ratio.

MEAT World commodity prices are generally high; but it is good news on the red meat front for Kiwis. All meat schedules have dropped, thanks to our high domestic dollar. Beef Good news for the FMCG sector! Local trade schedules have been falling rapidly this February and are at $4.10 - $4.25 per kg at time of writing. The National Animal Identification Tracing scheme moved closer to implementation for cattle in July, with it moving through Parliamentâ&#x20AC;&#x2122;s committee stage and this is great for all concerned. Lamb The trend is falling and at a mere $6.29 per kg average it has now slipped only 28c per kg ahead of last year, back from the staggeringly high prices in late spring and early summer. Mutton The mutton schedule is also finally falling and rapidly so after being at unbelievably high prices. Farmed venison Venison supplies are good and the venison schedule is still falling. Prices are now only 1c per kg above last years low, with a $7.00 summer price predicted as the seasonâ&#x20AC;&#x2122;s bottom.

FRUIT Volumes and varieties of fruit will be shrinking, particularly berries and stone fruits towards the end of this month, but this is still a great time for New Zealand fruits. Other fruits though will start to come on stream; passion fruit have arrived and limes have finally returned to the marketplace and the first New Zealand kiwifruit will show up at the end of March. Rock melon and watermelon volumes have increased and prices have come back markedly. NZ pears are well in and our early varieties of apples are here with more coming on stream as the month progresses. By mid April the choice really takes off. The number of stone fruit varieties available will diminish as the month progresses, as will the volume. Still available will be the later varieties mainly from the South Island â&#x20AC;&#x201C; Omega and Songold plums; Fantasia and Summer Blush nectarines; Genevieve and Southern Cross apricots; Peacherines, Golden Queen and Black Boy peaches from Hawkes Bay; Yumyeong and Marchesa peaches from the south, but cherries are pretty well shot to bits. Raspberries will be around but price will increase as volumes come back. Blackberries and blueberries will be

plentiful but will finish in April. Avocado volumes will start to drop by the end of the month as will lemons and oranges, but there will be plenty of imported citrus. From offshore - mangoes and pineapples are the best buying and of very good quality. Also of top quality are bananas including the fair trade and organic fruit and pomegranates from California.

VEGETABLES By the end of March many of the vegetables we have been enjoying in abundance will tail off but others will be starting. Courgette, aubergine and sweet corn volumes will peak and the prices will be as low as they will get this year but volumes will drop back in April. Capsicums will hold on until May but the New Zealand tomato crop will fall from its peak early in the month. Runner beans are in the marketplace as are the other varieties of bean, however all the New Zealand grown beans will be finished by mid April. There will be plenty of beetroot and new season kumara for the next couple of months. All the annual herbs

are in full swing and supply should be good over the period as will be salad leaves and rocket. New potatoes are finished but the traditional â&#x20AC;&#x2DC;Maoriâ&#x20AC;&#x2122; varieties are here for those who like something a little different. Red cabbage will turn up in the market later this month as will the first Brussels sprouts from the central North Island. There will be lots of good quality pumpkins around and leeks will be of better quality from mid March. And of cause this is the month for fresh corn on the cob.

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XXX BEBZ DP O[ MARCH 2012 FMCG

ISM Highlights FMCG talked to suppliers from around the world, who presented their chocolate innovations and top selling confectionery items at the 42nd International Sweets and Biscuits Fair (ISM) in Germany.

rom 29th January to 1st February 2012, more than 1400 suppliers from 65 countries occupied a total exhibition space of 110,000 square metres at the ISM in Cologne. Around 35,000 trade visitors from 130 countries enjoyed the comprehensive range of confectionery, fine baked goods, snack products, ice cream and chocolates on display.The official partner country of ISM 2012 was Belgium. “ISM is the world’s number one business platform for the trade in confectionery and snack items,” said Katharina Hamma, chief operating officer of Koelnmesse. ISM offered a top class meeting point for decision makers from the international confectionery industry 14

FMCG march 2012

at the CEO Lunch, an exclusive business event on the Sunday of the trade fair. “High prices for energy and raw materials are putting the manufacturers under a lot of pressure,” commented Tobias Bachmüller, chairman of the International Sweets and Biscuits Fair Working Group. “That’s why the extensive discussions and intensified export activities at ISM are indispensable for the sector.”

New Zealand visitors David Cunningham from Wilson Consumer Products told FMCG: “ISM has become an important part of our year as it allows us the opportunity to get a greater understanding of the international trends in product

development, packaging and marketing. With many of the international manufacturers exhibiting at the show this gives New Zealand distributors a unique opportunity to interact with these manufacturers, and tap into their local insights in one central location.This is an event which displays a huge number of the regional and the international products available, each with their own unique vision and selling points. “Though we have found some of the larger international brands have trended away from hosting here, we have seen a number of new brands take up the opportunity, as they look to launch their products to the world. With the tough economic times a number of the larger international

companies have looked to focus on packaging rather than new product innovation.” In summarising the new exhibitors, Cunningham says there were two distinct segments: “This year we have seen a number of new exhibitors showing a trend to focus on more niche market segments, and for these brands to look for more specific unique selling points, such as very specific regional ingredients, or flavours.This was especially prevalent in new flavours for chocolate, liquorice, and some fruit-based confectionery. We are also seeing a number of brands target the very premium demographic as some of the richer markets start to open up to new products around the world.”

“ISM has become an important part of our year as it allows us the opportunity to get a greater understanding of the international trends in product development, packaging and marketing.”

Contrasting with this there were a number of manufacturers at the show who were targeting house brands, or licensing brand opportunities. There were numerous Disney and Pixar licensed products in almost every segment, as manufacturers looked to gain that added interest in their David Cunningham, products. Though there are now a Wilson Consumer Products number of international trade fairs available, the ISM still holds its place as the largest confec- identifying the best opportunities tionery fair, and continues to offer suited for the unique NZ market, says an expansive range of exhibitors and Cunningham. Mark Donovan of Donovans visitors in one location. As with most of these shows there are opportuni- Chocolates confirms Cunningham’s ties everywhere, it is just a matter of view. Donovan visited ISM in 2011

march 2012 FMCG

feat ure

and says: “It was good and is still paying dividends.”

Hot trends and innovations Many new ideas were presented at ISM and country of origin, sustainability and fair trade seem increasingly important themes for the sector. This year the popular ‘New Product Showcase’ on the Boulevard showed 112 new products, from 78 companies. Belgian company Cavalier won first place with its chocolate products containing stevia; German company ültje came in second with new nut compositions in curry sausage and hamburger flavours; and the third prize was awarded to Austrian company PEZ for its new fruit gum bonbons in a novel dispenser. The ISM Chocolate Master special show was performed by maîtres chocolatiers from Belgium, who demonstrated their craftsmanship and first-rate, innovative chocolate designs, such as appetiser pralines refined with Parma ham. Creative chocolate compositions with new aromas, spices and salty ingredients were on display on a number of stands, as well as concepts focusing on the purity of the ingredients, their place of origin and cultivation area. Stevia was very popular, as were zero fat sweets from Big Sky Brands confectionery, developed in partnership with Yogen Fruz, the world’s leading retail frozen yoghurt chain. The formulation combines real yoghurt with all natural fruit flavours and pure cane sugar. Each piece is only three calories 16

FMCG march 2012

with zero fat. The initial launch features smoothie flavours made popular at the Yogen Fruz chain, including Strawberry Banana, Blueberry Breeze, Wild Cherry, Peachberry Sunset,Verry Berry, and Tropical Storm. “Free from” products for people suffering from allergies and/or food intolerance included chocolate bars and biscuits, as well as hollow figures without lactose, nuts, eggs, or gluten. Playing and snacking were popular themes with fun fruit gum dispensers, advent calendars with Christmas apps, numerous licensed products, and chocolate-covered surprises. Packaging concepts in the high-end sector featured bright colours and cutting-edge designs.

Barry Callebaut’s news At ISM, the world’s leading manufacturer of high quality cocoa and chocolate products, proudly launched its Cameroon chocolates and cocoa powders made with cocoa from a sustainable cultivation. Through its unique Quality Partner Program (QPP) Barry Callebaut assists the Cameroonian farmers with in-depth knowledge of cocoa farming, and thus aims to improve the quality of the

cocoa together with the participating cooperatives and cocoa farmers. The Cameroon cocoa powders are perfectly suited for use in bakery applications and are available under the Bensdorp brand. Barry Callebaut launched its QPP with cocoa farmer cooperatives in 2005 in the Ivory Coast. The sustainability programme is based on direct partnerships between Barry Callebaut and cooperatives, and offers farmer training in good agricultural practices with sustainable production, harvesting and post-harvest management practices.

ProSweets ProSweets Cologne, the International Supplier Fair for the Confectionery Industry, was also very successful. It once again took place in parallel to ISM and attracted around 17,000 trade visitors from 96 countries, who viewed the products and services offered by 334 suppliers. The trade fair presents the entire range of products for production, processing and packaging of confectionery. This included raw materials, machines and plants for the confectionery industry, and secondary segments such as food safety and quality management.

The 43rd ISM will take place from 27th to 30th January 2013. If you wish to participate, contact Robert Laing ph (09) 303 1000; email robert@messereps.co.nz For further information visit www.messereps.co.nz www.ism-cologne.com www.prosweets-cologne.com

W E N

New

TV, Online & Outdoor Campaign Starts April 29th 2012

Launching MARCH 2012 2

93% of consumers researched

Sweet

Sour

Strawberry Flavour

NEW TIC TAC ® STRAWBERRY FIELDS ®

& rated it higher than TIC TAC Orange, the No.1 TIC TAC SKU 1. PHD within 4 months of launch (May-August 2012). 2. Ipsos study 2010.

Don’t miss out on your piece of the Strawberry Punnet in 2012 For more information, contact your Ferrero representative or call 0800 222 196

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Sweet treats With Easter and Mother’s Day approaching, innovation and quality gifting are key trends in Chocolate and Confectionery. FMCG talked to some of the major suppliers to find out what’s new in these categories.

box of chocolates has become the gift of choice for many occasions, from a simple ‘thank you’ to a sweet gesture of love. Ferrero has a range of unique, premium products for any occasion.The Boxed Chocolate category is worth in excess of $52.5m per annum*, says Deejay O’Dowd, trade marketing manager for Ferrero distributor FNZ Brands. He explains: “The Ferrero range of brands comprises of Ferrero Rocher, Ferrero Rondnoir, Ferrero Raffaello and Ferrero Collection, and they continue to grow their presence within the Boxed Chocolate category. Ferrero is growing at 4.9% value sales, which is ahead of category value sales growth of 4.1%*. Ferrero is now the number two Boxed Chocolate manufacturer measured by value sales; importantly Ferrero 18

FMCG march 2012

remains the number one premium Boxed Chocolate brand*.” With an extensive range of products for both every day and seasonal occasions, Ferrero is committed to significantly growing its sales. O’Dowd notes: “Ferrero adds value to the Boxed Chocolate category through innovation and heavyweight above/below the line marketing and advertising investment. Additionally, Ferrero recognises that there are opportunities to increase sales outside of seasonal events, such as Christmas, therefore has a range of unique products to satisfy consumer needs all year round, from self-indulgence through to impressive gifting.” * TKA, Nielsen scan sales. Current MAT to 1/1/2012.

Tic Tac’s fresh new flavour for 2012 Tic Tac, the iconic mints brand known and loved by New Zealand consumers since the mid 1970s, is continuing to invest in product innovation to bring freshness to the category, says Deejay O’Dowd, trade

marketing manager for Tic Tac distributor FNZ Brands. In March Tic Tac is launching ‘Strawberry Fields’, a mixture of sweet & sour strawberry flavoured mints. O’Dowd says: “Tic Tac understands the importance of innovation in the Pocket Packs category. In 2010 Tic Tac launched the very popular ‘Citrus Twist’, followed by ‘Intensity Mint’ in 2011, along with the limited edition ‘Melon Mango’ flavour for summer 2011/12. Tic Tac is the number two Pocket Pack brand in the grocery channel and is growing at 9.6% value sales, which is ahead of category value sales growth of 6.6%*.” He says the company is excited with the launch of Tic Tac Strawberry Fields, as Strawberry Fields scored higher than Tic Tac’s top selling Orange flavour for overall liking of product and purchase intention, in global research. The launch of Tic Tac Strawberry Fields will be supported by an $850k investment in both above and below the marketing, which will ensure that the

chocolate & confec ti on er y launch of Tic Tac Strawberry Fields will be the biggest and most successful launch of a new Tic Tac flavour, says O’Dowd. * TKA, Nielsen scan sales. Current QTR to 1/1/2012.

Lindt Lindt Chocolate continues to add value and profitability to the Chocolate categories and is growing ahead of the market as consumers trade up to premium chocolate, says Ken Davis, business manager at Brandlines. He explains:“Lindt Blocks’ growth

is 30.9% and Lindt Boxed growth is 19.9% (latest QTR in TKA Aztec 8/1/12).” Davis says: “Lindt Blocks once again leads the market with innovation with the ‘NEW’ Dark Excellence ‘Passionfruit’ block, which is performing well and will drive further growth within the premium Blocks category. An exotic and innovative new flavour combination designed to target Excellence devotees, and also to encourage consumers to expand their repertoire within the Excellence Dark range. “Look out for new and exciting

THE BREAKDOWN Current MAT to 01 January 2012 Total Chocolate Confectionery: $272.402m Value % Chg vs YA 8.8 T. Bar/Chunky: $50.821m Value % Chg vs YA 12.0 T. Block Chocolate: $92.647m Value % Chg vs YA 7.3 T. Easter Confectionery: $28.608m Value % Chg vs YA 7.3 T. Boxed: $48.496m Value % Chg vs YA 4.5 T. Treat/Fun Pack: $24.212m Value % Chg vs YA 17.2 T. Family Bags: $12.559m Value % Chg vs YA 10.3 T. Multi Pack: $6.365m Value % Chg vs YA 4.2 T. Novelty Bar: $2.781m Value % Chg vs YA 25.0 T. Handy Bags: $1.735m Value % Chg vs YA 38.7 T. Card/Tub Packs: $1.407m Value % Chg vs YA -4.1

T. Jumbo Bags: $2.244m Value % Chg vs YA 16.1 T. Gift Pack: $520,664 Value % Chg vs YA -11.3 Total Confectionery: $408.743m Value % Chg vs YA 7.6 T. Bar/Chunky: $50.828m Value % Chg vs YA 12.0 T. Family Bags: $74.601m Value % Chg vs YA 10.1 T. Block Chocolate: $92.647m Value % Chg vs YA 7.3 T. Stick/Roll Packs: $18.885m Value % Chg vs YA 4.2 T. Chewing Gum: $21.338m Value % Chg vs YA -0.6 T. Boxed: $50.911m Value % Chg vs YA 4.5 T. Easter Confectionery: $28.608m Value % Chg vs YA 7.3 T. Treat/Fun Pack: $24.242m Value % Chg vs YA 17.3

T. Jumbo Bags: $21.116m Value % Chg vs YA 3.5 T. Card/Tub Pack: $4.935m Value % Chg vs YA 2.5 T. Multi Pack: $6.365m Value % Chg vs YA 4.2 T. Handy Bags: $3.338m Value % Chg vs YA 10.2 T. Christmas Confectionery: $5.578m Value % Chg vs YA -1.1 T. Novelty Bar: $2.781m Value % Chg vs YA 25.0 T. Bubble Gum: $729,696 Value % Chg vs YA 9.1 T. Bulk Bags: $1.320m Value % Chg vs YA 3.6 T. Gift Pack: $520,664 Value % Chg vs YA -11.3

* Nielsen New Zealand ScanTrack (Databank)

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cate go r y c h e c k Excellence innovations later in the year.” Davis says: “In Boxed Chocolate the Lindt Lindor Bags 125g Assorted and Milk have been added to the Lindor family with an amazing 35,000 units sold in the latest Qtr in TKA (Aztec 8/1/12) with a high USW. Both skus have the same delectably smooth Lindor balls with the melting centres.” He adds: “The Lindt Gold Bunny will again be in high demand at Easter with consumers, as we had very good sell-through numbers across all of the accounts in 2011.”

Werther’s Original The Werther’s Original brand continues to experience sensational growth in the New Zealand market, says Brandlines Limited assistant business manager Alana Connolly. The bag range includes Werther’s Original Classic Candies, Werther’s Original Sugar Free,Werther’s Original Éclair, Werther’s Original Caramel Cream and Werther’s Original Chewy Toffee. Connolly says: “Along with the impulse lines, Werther’s Original Classic Candies stick pack and the new Werther’s Original Sugar Free box, the Werther’s Original brand is currently growing at 16.8%, well ahead of the Total Confectionery category that is growing at 7.4% (Aztec TKA data MAT to 8/1/12).” She adds: “With the increase in consumer awareness of sugar content in foods, Werther’s Original Sugar Free bag is experiencing phenomenal growth of 24%, (Aztec TKA data MAT to 8/1/12). Due to this success Werther’s Original released the popular Sugar Free candy in a convenient 42g box in 2011. This has provided stores with a delicious sugar free offering, ideal for checkouts. Currently ranged in Foodstuffs stores, this line is 20

FMCG march 2012

selling 20 units per store per week, (Aztec TKA data MAT 8/1/12).” In 2012 Werther’s Original will continue to grow its family bag range with the launch of Werther’s Original Soft Chocolate Caramels. This is a deliciously soft caramel, covered in a smooth milk chocolate. This new product will be featured in this year’s Werther’s Original media campaign.

Mentos Candy Brandlines business manager Kylie Whellan says Mentos Candy continued the trend of year on year growth in 2011 with a 13% increase over 2010 (Aztec data, TKA Value MAT to 8/1/12). She explains: “In 2011 the Mentos Mini family bag range grew 21% versus the same QTR YA (Aztec Data Value to 8/1/12). This growth was primarily due to the replacement of Berry mix with the popular rolls variant, Rainbow, along with a packaging refresh. The six flavour variants currently in the Mentos Rolls range are Mint, Rainbow, Mixed Fruit, Cola, Spearmint and Berry Blast and launching this month is the superfruit flavour Blackcurrant. Whellan says: “A uniquely popular flavour in New Zealand, it has been reported that Blackcurrant has provided incremental sales in other categories. And with Mentos growing incrementally in the past through new flavour launches, the new Mentos Blackcurrant Roll looks to do the same. “A combination of in and out of store activity planned for 2012 will continue to grow the Mentos Brand and the category.”

Chupa Chups Whellan also looks after Chupa Chups singles (Best of and Magics) and says they remain the number one selling brand in the Stick and Roll category and continue to grow.

“Overall, the Chupa Chups brand is growing at 10.7% (Aztec data TKA units four weeks PP to 8/1/12),” she says. She adds: “Recent instore activity using Chupa Chups Megatins has seen Chupa Chups singles hit a new high of 567 units per store per week.This is 123% higher than the last record week in October 2010, proving that location and point of sale are key to the success of any promotion (Aztec on Web data week ending 5/2/12).” New lines launched in 2011 include two bags and one flavour addition to the Chupa Chups Twice range. Chupa Chups Twice Strawberry Cream and Chocolate is a double scoop Chupa Chups lollipop appealing to consumers who are looking for a little bit more from their Chupa Chups experience, says Whellan. In November 2011 Chupa Chups Mini Sours were launched to appeal to those smaller appetites looking for a sour experience from the Chupa Chups brand. At the same time Chupa Chups Chuck bag was also launched. “This bag contains 38 flat Chupa Chups lollipops, and in the four weeks up to 8/1/12 made up 22% of total Chupa Chups family bag sales (Aztec value data TKA),” says Whellan. This bag features Chuck, the ambassador for Chupa Chups worldwide. Chuck’s popularity continues to grow in New Zealand through his own Facebook page, ‘Chuck thinks’, which currently interacts with over 125,000 fans.

Wrigley Wrigley’s brands in New Zealand supermarkets include Gum (Extra, 5 gum, Airwaves, Eclipse Ice, PK,

chocolate & confec ti on er y Juicy Fruit, Hubba Bubba); Mints (Eclipse) and Confectionery (Skittles, Starburst). “Our biggest new product news in the last 12 months has been the launch of Extra Active, an Australian-made world-first innovation in gum,” says Kate Morton, Wrigley’s New Zealand country manager. New sugar-free Extra Active is a global exclusive for Australia and new Zealand consumers – a totally new look soft tab gum that helps give you a clean, fresh and healthy mouth. Available in Peppermint and Spearmint flavours, Extra Active has two Erythritol crystal strips which, when chewed, dissolve to release a fresh minty flavour burst and immediate cooling effect. Launched in September 2011, the product is manufactured exclusively at Wrigley’s Asquith plant in Australia. It retails in New Zealand at RRP $2.49 (envelope) and $4.55 (2 pack). Morton says: “Wrigley holds 24.4% share of Non Choc Confectionery, up 4.2% versus a year ago (Aztec MAT to 29/01/2012 - value) and is the #4 manufacturer in Total Confectionery (Aztec MAT to 29/01/2012 - value). Since it launched, Extra Active has been a key driver of Extra’s success as New Zealand’s number one gum brand. Extra has more than 55% share of the category, and is growing at 28.7%. That’s seven times faster than

overall category growth*. Extra Active has 10.4% share of Total Gum and is worth over $2.3m to the category annually*.” Morton adds: “We have some very exciting new products launching in the first half of this year – stay tuned, we’ll tell you about them as soon as we’re able to!” The consumer trends in this category, according to Morton, include breath freshening, innovation and visibility – which is key at the front of store/counter to trigger impulse sales. * Aztec current QTR to 29/01/2012 - value

House of Fine Foods House of Fine Foods supplies supermarkets with a wide range of confectionery including Haribo, Mr Mallow, Darrell Lea, Pez, Jols and Fyna. Both Haribo and Mr Mallow are well known for their innovative ideas which translate into highly marketable products, says general manager Brett Tibbotts. He explains: “The Haribo range, launched during the last year, has enjoyed excellent growth which is expected to continue as the range is expanded, and its unique point of difference, focus on natural ingredients, high quality, and innovative shapes become familiar to New Zealanders.

Already a world famous brand and trusted across more than 23 countries, Haribo is an ideal fit within the House of Fine Foods range and its vision, providing confectionery that looks and tastes great and that gives good value for money.” Both Haribo and Mr Mallow include seasonal releases which complement the everyday ranges.

Wilson Consumer Products Wilson Consumer Products looks after the Guylian, Hershey’s and Turin ranges of chocolates. David Cunningham, business manager - Confectionery, says: “Over Christmas we have relaunched the popular Cookies n Crème kisses. Hershey’s offered the opportunity to re-introduce this popular flavour back into the NZ market. Previously these

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cate go r y c h e c k seasonal items ranged at discounted prices, consumers appeared to prefer to spend their hard earned money on products they know and trust.This was especially true for gifting items; consumers want to appear to be giving a gift of value and quality.”

Richfields

had been our most popular flavour and with the new packaging we believe these will again be a New Zealand favourite. “During the Christmas period we introduced the new seasonal packaging for Guylian Temptations. This included the Christmas tree pack and a Christmas star. These were extremely popular as they offered the consumer a novelty gift item containing a known, branded product at a reasonable price point, ideal for the key gifting period.” Cunningham says the Christmas sales of these seasonal lines were well beyond expectation with a number of stores looking to re-order product prior to Christmas week. Consumers appeared to appreciate the seasonal packaging and competitive price points. He adds: “Over the key Christmas period we have seen consumers return to brands that they know and trust. Though there were a number of

FMCG march 2012

For two generations, Richfields Chocolate has been finely crafted in Christchurch for the domestic and export market, including the Richfields No Added Sugar varieties and the Richfields Dark range of 70% cocoa chocolate. Kylee Cooper, who is in charge of sales and marketing, told FMCG: “In the last 12 months we have seen our branded retail growth stem more from our No Added Sugar range. Our customers are telling us that they appreciate having a sugar-free option with all the taste of a traditional recipe chocolate. As the first New Zealand company to provide such a range to the market, we see this as a success story. “We see that consumers are starting to really understand the differences in the chocolate brands that are on offer and are branching out from their norm to experiment with different flavours and cocoa percentages.” Richfields Chocolate has met the challenges of being based in Christchurch head-on over the last 12 months, ‘emerging from the rubble’ to be stronger than ever. Cooper says: “Despite the disruptions from the earthquakes, 2011 was a year for us to concentrate on continuity of service and product, with 2012 emerging as an exciting year for us to consolidate our position as a major New Zealand chocolate manufacturer. We are firm believers that out of adversity, comes opportunity.” Cooper adds: “2012 is a special year for Richfields as we celebrate our 20 year anniversary. Richfields started as a family business in 1992 and continues passionate chocolate making with an ethical sourcing strategy, resulting in a fiercely loyal customer base. We are committed to building on our solid

foundation to provide New Zealanders with our unique taste for the next 20 years and beyond.”

Kiwiland Confectionery fans nationwide will no doubt be well aware of the Kiwiland brand, manufactured by FoodFlo International, says sales & marketing manager Matthew Cox. Cox says: “Our products include a wide range of delicious confectionery treats made right here in our factory in Pahiatua, Wairarapa, to the highest standards.We are one of very few food manufacturers in NZ to have our Food Safety Programme audited to BRC (British Retail Consortium) standard. “Our flagship product is the extremely popular Choc Hokey Pokey chunks, which are batch made by a secret process, creating a honeycomb of unique quality, which is then choc coated for the ultimate tasty treat. Also in the choc range are our delectable Coconut Roughs, Hokey Pokey Clusters, Peanut Clusters and Dark Choc Peppermint Bites.” He adds: “The range also includes a selection of wrapped boiled sweets, which were re-launched last year in a new round shape – sales of these products have really ramped up since then and we are rapt with the response to our new improved product. The boiled range includes our classic Barley Sugars, a delicious Butterscotch, and a mixed fruit flavour variety – Orchard Fruits, which includes a delicious range of fresh fruit flavours such as apple, passionfruit, boysenberry, peach, and grape. The sales of this variant have really taken off since the relaunch; don’t miss out on these any longer if you haven’t tried them!” Cox comments: “We believe that the consumers’ very enthusiastic response to our range is because it meets their needs for confectionery products made right here in NZ by a NZ owned family business, not a multinational conglomerate, and therefore meets their taste expectations. Along with all this, it offers exceptional value for money, which is very important to

chocolate & confec ti on er y consumers in these days of financial instability. “We will be driving sales over the next months through a variety of exciting new initiatives and products – watch this space!”

Donovans Chocolates Donovans Chocolates are lovingly crafted in the Waikato – the heart of NZ dairy country. Key account manager Mark Donovan says: “New 100g Bars were launched in October 2011, including Creamy Milk Chocolate combined with tangy Feijoa, Real Chilli & Lime combined with 60% Dark Cocoa Solids for those with adventurous taste buds.” Also launched were new resealable pouches; these include Milk & Dark Almonds, Yoghurt & Dark Chocolate Coated Cranberries, Russian Fudge & Chocolate Fudge. Sales of Donovans products have progressed very well. Donovan comments: “We plan to build on the success of the new look Donovans by making further additions throughout the year.” According to Donovan the consumer trends in this category include less quantity and better quality. He says: “Consumers at national food shows and in-store taste demonstrations reiterate that NZ-made still ranks highly in their ‘value perception’. “Consumers in the segment that we are dedicated to want a warm and

friendly experience that contributes to making them feel good, with a bit of fun. The new contemporary look of Donovans Chocolates delivers craftsmanship with real shelf standout.”

Whittaker’s Marketing manager Philip Poole told FMCG: “We entered the Share Pack market in March 2011 with an innovative new product, Mini Slabs. To launch the range, four popular flavours were introduced (Peanut, Almond Gold, Creamy Milk and Coconut). In October 2011, two additional dark variants were launched, 50% Dark Peppermint and 72% Dark Ghana. “The Share Pack market appeared to have little recent innovation and since our Mini Slab range was introduced the market has grown by 31.6% (latest QTR 05/02/12, Aztec Data). Whittaker’s have obtained a value share of 25.4% (latest QTR) in this market (Aztec Data 05/02/12), which we feel is the result of a successful new product range.” He adds: “In our Mini Slab range we have launched three new delicious

flavours in February 2012; Hokey Pokey, Berry & Biscuit, and White. The Hokey Pokey flavour is completely new for Whittaker’s and we feel that it is a perfect fit for an iconic New Zealand company. Following on from the success of our 250g Berry & Biscuit Block launch in October 2011, a Mini Slab in this flavour was also a perfect addition to the range. Both of these flavours are made with our 33% Creamy Milk chocolate and use only the finest Ghanaian cocoa beans.” Chocolate is a small indulgence and consumers are always looking for innovation in the market. Poole comments: “Although our 250g Block range is very successful, the Mini Slabs provide a small bite-sized treat in popular Whittaker’s flavours that are designed for sharing with family and friends, and are ideal for handbag or lunch box treats, without feeling too guilty.” For more commentary and product updates in this category see fmcg. co.nz/features/category-reports.

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Breakfast stars The total breakfast cereal market is still growing in New Zealand, driven by innovation, convenience and value. FMCG talked to some of the stakeholders in this significant category.

eady To Eat Cereal generates over $204.9 million (MAT)* and contributes 80% of total Breakfast Category sales, says Viv Wilson, category & shopper insights manager at Kellogg NZ. Liquid Portables contribute 9% and Hot Oats 11%, she says. Wilson explains: “Kellogg is the second largest manufacturer of cereal in the NZ market with 28.1% share within Ready To Eat Cereal (RTEC). Kellogg had a great year with sales growing at 8.2% (ahead of category performance, up 3.5%) and contributing 63% of the category’s

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growth (latest MAT data).” The major brand is Kellogg’s which umbrellas well known subbrands such as Nutri-Grain, Special K, Sultana Bran, Coco Pops, Just Right, All-Bran, Crunchy Nut, Mini Wheats and Kellogg’s Cornflakes and Rice Bubbles. Kellogg’s also has the Be Natural brand which appears in both the cereal aisle and nutritious snacks. Wilson says: “Kellogg launched a range of new products in 2011, each of which delivered against different consumer needs to drive news and relevance in the Cereal category. A

delicious new variant in All-Bran Apple Crunch was launched in April 2011, joining the existing range of All-Bran Original, Wheat Flakes and Honey Almond skus. All-Bran Apple Crunch sales have been largely incremental to the brand contributing to 8.9% $ growth (MAT) for AllBran.” Kellogg’s Mini Wheats were relaunched in February 2011 with a new larger family 500gm pack, and additional flavour ‘Mixed Berry’ added, to support the Blackcurrant sku. Mini Wheats are characterised by a high wholegrain content of

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“‘Natural’ foods, as a global trend, is on the rise, so it is really exciting to be able to pioneer and cater to this growing consumer demand in New Zealand for natural, minimally processed cereals.” Viv Wilson, category & shopper insights manager at Kellogg NZ.

THE BREAKDOWN Current MAT to 01 January 2012

73%, high in fibre and have the Heart Foundation tick. Wilson comments: “Mini Wheats continue to track well with both skus contributing equal share of sales. Overall the brand has increased 69.7% (latest MAT).” She adds: “The biggest product launch for Kellogg’s in 2011 was our range of Be Natural cereals in July 2011. Be Natural Trail Bars have been on our shelves in the nutritious snacks’ category for four years, so it was very exciting to be able to bring the brand into the RTEC segment with its unique attributes of being made from five wholegrains and also

containing no artificial colours, flavours or preservatives.‘Natural’ foods, as a global trend, is on the rise so it is really exciting to be able to pioneer and cater to this growing consumer demand in New Zealand for natural, minimally processed cereals.” Be Natural cereals consist of three flavours; Be Natural Cashew, Almond, Hazelnut and Coconut; Be Natural Pink Lady Apple & Flame Raisin and the newly launched Be Natural Manuka Honey & Spice Clusters (available from February 2012). In the last few weeks Kellogg’s

Total Breakfast Cereals $256.817m Value % Chg vs YA 5.4 T. Family $91.365m Value % Chg vs YA 3.9 T. Adult $54.169m Value % Chg vs YA 5.0 T. Muesli $34.797m Value % Chg vs YA 3.4 T. Kids $24.767m Value % Chg vs YA 0.2 T. Hot – Standard $19.916m Value % Chg vs YA 4.0 T. Convenience $23.354m Value % Chg vs YA 22.5 T. Hot – Sachet $8.448m Value % Chg vs YA 10.7 * Nielsen New Zealand ScanTrack (Databank)

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cate go r y c h e c k Special K has also launched a new variant ‘Special K Fruit & Nut’ to its range of five skus. Wilson says: “Special K is the third biggest brand in RTEC worth $8.5m with sales continuing to strengthen off the back of its new ‘Low GI, High Protein’ messaging (SK flavours up 19.5% and SK original skus +16.6% in latest six months).” *Aztec scan data to 05/02/2012.

Hubbards The total Cereal market is valued at $258m and growing at +6.1% versus last year* driven by steady category innovation, says Hubbards’ national sales manager Daniel O’Brien. Cereal plays a daily role in consumers’ lives and breakfast is recognised as a key consumption occasion for New Zealanders of all ages. Hubbards’ share of Total Cereal is 8.2% with a strong presence in the core segments; Muesli, Light Health and Specialty Cereals, says O‘Brien. He explains: “Hubbards’ overall share of muesli is 30.1% comprising Hubbards’ Original Range (Fruitful Breakfast, Berry Berry Nice, etc) and more recently the introduction of the delicious tasting Clever Clusters range, and Hubbards’ Simply range. Hubbards’ Simply makes up around one third of Hubbards’ muesli share and is showing steady growth off a value platform.” He adds: “Hubbards introduced Real Flakes to market in the $30.6m Light Health segment during 2010/11 targeting health conscious females. Recently launched Real

Berries and Real with Cinnamon Clusters variants are aimed at consumers looking for a lighter texture and nutritious cereal with a natural and fresh taste. “Specialty cereals comprising mainly gluten free and organic cereals represent $8.0m of total cereal and are showing solid growth of +7.5%. Hubbards has experienced very positive growth with its Thank Goodness gluten-free range now at 15.6% value share. Gluten intolerance is an ongoing issue for many consumers and Thank Goodness caters for these individuals, offering products with no gluten or dairy, plus they are great tasting cereals.” Looking ahead, Hubbards is committed to continued product innovation to drive category value growth. New Zealand’s aging population, changes in ethnic mix, changing consumption patterns and general food trends will continue to provide growth opportunities across the Total Cereals’ category, says O’Brien. *All data Aztec MAT to 05/02/2012.

Freedom Foods Freedom Foods offers cereals, breakfast bars and snacks. The company has recently introduced several new products into the New Zealand market, including: • Freedom Foods Apple & Blueberry Crunchola Cereal 450gm • Freedom Foods Maple Crunch 300gm • Freedom Foods Ancient Grain Flakes Cereal 350gm • Freedom Foods Ancient Grain

Super Muesli Bar 210gm • Freedom Foods Apple & Blueberry Crunchola Muesli Bar 210gm • Freedom Foods Chewy Apricot Muesli Bar 210gm • Freedom Foods Cranberry Crave Biscuits 180gm Michael Bracka, chief operating officer for Freedom Foods Group, comments: “All of these products are produced at our dedicated glutenand nut-free food processing plant. We have an on-site mill, so we process the grains ourselves to ensure highest quality and allergen-free status. “These products were only launched in the past few weeks, however initial uptake has been very pleasing.We have been really thrilled by the reaction from our customers, who have welcomed the launch of truly nut-free foods into the Health category.” Freedom Foods is continuously working towards new and innovative product development and working towards releasing more products in 2013. Bracka says consumers are becoming more aspirational with regard to health claims and natural ingredients used in cereals. He says: “With approximately one in 100 people diagnosed with coeliac disease*, and the hazard surrounding anaphylaxis for those allergic to nuts, a glutenor nut-free diet has become increasingly important. “For more information on our products please visit freedom foods.com.au or visit our Facebook website facebook.com/ freedomfoodsgroup.” *Source: Coeliac Society New Zealand

Vogel’s Vogel’s Breakfast cereals come in three ranges: Luxury Blend, CaféStyle and Family. There have been a number of new launches in the past 12 months. Smartfoods’ general manager, Vicky Taylor says: “We have added two products to the successful 26

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Café-Style range; Vogel’s Café-Style Light Luxury Nuts & Seeds and Vogel’s Café-Style Berryfruit. “Vogel’s Café-Style Light Luxury Nuts & Seeds has less than 7% sugar, which is achieved by using stevia, an all-natural non-nutritive sweetener. It has been a very successful launch and brought new consumers into the range.” Vogel’s Café-Style Berryfruit is a luxurious muesli with berryfruit, apple and almond. Taylor says: “We have also launched the Vogel’s Luxury Blend range of three super premium cereals: Macadamia, Date & Honey; Maple Walnut and Almond; and Mango, Melon and Pohutakawa Honey. This range has simply the most luxurious chunky fruit, nuts and seeds with amazing flavours.” She adds: “Total Vogel’s has grown at +15.3% MAT, growing ahead of the category at +5.1%. Vogel’s CaféStyle range has an outstanding growth rate of +31.3% MAT and +19.6* Qtr and continues to drive growth in the category. The addition of the new Luxury Blend range will help to drive growth in the super premium muesli segment.” Taylor says: “Consumers will always buy on taste first – a delicious cereal that you will look forward to every

morning is a must. But the most successful products have something else as well – whether it is unique functional benefits such as the Café-Style offers, or simply the most natural ingredients such as the Family range, shoppers are looking for taste plus benefits.” * Aztec 29/01/2012.

Sanitarium National category manager Mark Roper says Sanitarium is New Zealand’s favourite breakfast maker, with a range of brands stretching from Kiwi icon Weet-Bix (including regular Weet-Bix, as well as Weet-Bix Bites, Hi Bran, Oat-Bran and Multigrain), to Up&Go Liquid Breakfast, Energize and Vive, to Sanitarium Muesli, Light’n’Tasty, Cluster Crisp, Skippy Cornflakes, Ricies and Honey Puffs. Roper says over the past 12 months Sanitarium has launched a number of new products including Weet-Bix Bites Golden Crumble, with the Bites range performing strongly over the past six months. Sanitarium Muesli Hi-Fibre and Light Plum & Cranberry bring new news to our popular line up of mueslis. The reintroduction of Light’n’Tasty favourites Peach & Raspberry and Macadamia, along with the rest of the range, have performed well over the key summer season with in-store activity a focus. A larger size

Oat Singles 100% organic oats creamy fast-cook porridge

PLAIN NATURAL

400g

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of our top selling Cluster Crisp Vanilla Almond is soon to be followed by a great new Manuka Honey & Roasted Cashew flavour.” Roper adds: “Up&Go has been the star performer in the Breakfast aisle with over 30% growth for the latest quarter versus year ago*. Banana has been added to the top selling six-pack range, while the 1L format is now well established, with Strawberry recently added to Choc Ice and Vanilla, launched a year ago. Further product news is expected in the coming months.” The All Blacks also continue to be a proven success in the Breakfast category. 2011 saw great support in-store with eye-catching displays driving sales of both Weet-Bix and Up&Go. An array of initiatives including collector cards, Weet-Bix Tins and a Limited Edition All Blacks Energize Choc Max flavour all helped deliver strong results, says Roper. Plans for the 2012 All Blacks season are currently being finalised to build on the huge numbers of fans and enthusiasm for the All Blacks, resulting from the Rugby World Cup. Through February and March, the annual ‘Weet-Bix Tryathlon’ series runs across 12 events around the country. This series is now in its

breakfast cereals

20th year and receives great support within the trade and community as around 20,000 kids swim, bike and run their way to receive a medal from a NZ sports star. To celebrate the 20 years, a major promotion giving away five Toyota Yaris cars is running on Weet-Bix packs, driving sales in-store. With respect to consumer trends, Roper says: “Consumers and shoppers continue to look for variety, value, healthier choices and convenience for breakfast, which most still consider the most important meal of the day. Brands and products that provide these attributes will continue to be sought after.” * Nielsen to 01/01/2012.

Harraways Harraways is New Zealand’s largest oat supplier and continues to grow the Harraways’ brand of oats throughout New Zealand, says national sales manager Rodney Johnson. Harraways also continues to manufacture and supply the Nicola’s Organics Muesli range to New Zealand and international markets. Traditional porridge in bulk packs and Oat Singles’ growth continue as consumers take up the healthy eating messages and want to increase intake of fibre by consuming natural foods

like oats that have low energy density. “Currently the total retail oat market is growing at 6.5% and much of this growth has come from the sachet market, which is growing at 11.5%. The single serve convenient market represents approximately 30% of total hot breakfast cereals (Aztec),” says Johnson. Harraways continues to promote outside the traditional porridge season (other than winter) and has seen solid growth in these periods, by continuing to drive sales with healthy food messages for breakfast servings, and the education to NZ families of the nutritional benefits of consuming oats. Harraways has achieved sound growth in the past 12 months and in particular in the release of its sachet flavours and the acceptance of these within the NZ market. Harraways will be releasing a new sachet flavour variant of Sweet Maple this year and this will complement its range of Oat Singles flavours. Also, Harraways continues to explore innovative solutions to reinvigorate the sectors of the market that require stimulation. For more commentary and product updates in this category see fmcg. co.nz/features/category-reports.

Harraways has achieved sound growth in the past 12 months and in particular in the release of its sachet flavours.

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Health & Beauty Aisle Are retailers ready to tap into new growth opportunities in the over-the-counter (OTC) medicines market? FMCG finds out what’s on the horizon for 2012.

he days are getting shorter and winter is just around the corner – a time to stock up on cold and flu remedies, vitamins and other seasonal necessities. As one of the most important stakeholders in this category, GlaxoSmithKline Consumer Healthcare (GSK) has worked to partner with both Grocery and Pharmacy to develop the overall OTC market. “GSK believes there is still substantial opportunity to grow the OTC category in grocery through supporting consumers with a range of brands and improved navigation” says Neill Arnold, category and shopper marketing manager, GSK. 30

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Pharmacy is differentiated by offering the opportunity for expert recommendation and pharmacy-only medicine. In Grocery, GSK’s range of leading and trusted brands forms a strong component of the current OTC category. In the analgesics category is Panadol, New Zealand’s most trusted brand of pain reliever*, which remains the largest single brand (Nielsen Grocery Scan Data, MAT 01.01.2012). Coldrex has been at the forefront of growth in Grocery, championing the growth of solid dose cold and flu remedies and is proud to have the number one and three sku in the category. In 2012, the new creative for

otc medi ci n es “GSK believes there is still substantial opportunity to grow the OTC category in grocery through supporting consumers with a range of brands and improved navigation.” Neill Arnold, category and shopper marketing manager, GSK. Coldrex will help more shoppers understand that they have the opportunity to ‘Fight Back’ when a cold or flu strikes. Where to next for growth in Grocery? Arnold says: “The OTC category will need to meet additional shopper needs whilst becoming easier to shop. Better shelf navigation could be a potential solution.” As for new segments, specific con-

ditions such as cold sores offer potential. Zovirax is NZ’s number one cold sore remedy and is now available in grocery, says Arnold. It offers a solution to shoppers’ needs and is a substantial driver of basket value. “Overall GSK has a strong range of trusted brands and capabilities to partner with both retail segments in developing this category to meet more shoppers’ needs.” *Reader’s Digest Survey, 2001-2011.

THE BREAKDOWN Current MAT to 01 January 2012 Total Patent Medicines & Remedies $68.582m Value % Chg vs YA 6.2 T. Oral Analgesics $31.871m Value % Chg vs YA 4.3 T. First Aid $9.102m Value % Chg vs YA 3.8 T. Antacid & Stomach Remedies $6.118m Value % Chg vs YA 6.9 T. Personal Antiseptics $2.190m Value % Chg vs YA 15.3 T. Insect Repellants $2.138m Value % Chg vs YA -0.7 T. Laxatives $4.662m Value % Chg vs YA 6.4 T. Liniments $3.862m Value % Chg vs YA 15.9

T. Antiseptic Liquids $2.032m Value % Chg vs YA -4.1 T. Eye Medications $887,724 Value % Chg vs YA 3.1 T. Cell Salts $268,307 Value % Chg vs YA 14.2 T. Foot Care $905,605 Value % Chg vs YA 3.1 T. Anti Itch/Emolients & Protectives $491,438 Value % Chg vs YA 15.0 T. Smoking Cessation 1.394m Value % Chg vs YA 21.3 T. Mouth & Gum Preparations $623,432 Value % Chg vs YA 2.8 T. Anti Viral Applications $1.007m Value % Chg vs YA 21.3

T. Antihistamines $387,023 Value % Chg vs YA 364.7 T. Topical Anti Parasitics $538,352 Value % Chg vs YA 7.6 T. Electrolyte Replacement $65,217 Value % Chg vs YA 32.3 T. Ear Preparations $27,902 Value % Chg vs YA 0.4 T. Topical Vein Treatments $10,776 Value % Chg vs YA 41.66

* Nielsen New Zealand ScanTrack (Databank)

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New flavour for Fisherman’s Friend

Centrum and Caltrate Pfizer New Zealand distributes Centrum (multivitamin) and Caltrate (calcium supplement). FMCG caught up with Pfizer Consumer Healthcare’s national account manager – Grocery, Michelle Latta, who explained that Centrum was re-launched in August 2011 as Centrum Advance – an improved formulation with increased levels of many vitamins and minerals, plus, new antioxidants for healthy eyesight (Lutein and Vitamin A) and healthy heart (Lycopene,Vitamin B6 and Folic Acid). She said: “Centrum Kids Orange was launched in December 2011 – a flavour extension to our kids range. It provides the right combination of essential nutrients that children need every day to supplement any nutritional gaps and help ensure healthy growth, development and performance, as well as Vitamin A, C and E which may support a healthy immune function.” Latta adds: “A successful re-launch in August has resulted in $ growth of 3.6% (quarter to 08/01/12 Aztec). 32

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Centrum Kids Orange has strengthened the Kids offering and added visibility to the brand ($ Growth of 26.4% quarter to 08/01/12 Aztec). Current ranging is approx 50% of Grocery accounts, with distribution growing month on month.” In Latta’s experience, consumers are incredibly time poor and taking a once-a-day formula minimises the complication of taking a multivitamin. As far as consumer trends are concerned, she says online is also a huge growth area, where consumers are researching symptoms and product benefits prior to the purchase.

Deep Heat Arthritis Relief EBOS Healthcare is launching Deep Heat Arthritis Relief in the next few weeks, says brand manager Maya Banks. Deep Heat Arthritis Relief offers fast temporary pain relief to consumers suffering from arthritis. Osteoarthritis is the most common form of arthritis. Almost half of all people over the age of 60 and virtually all over the age of 80 are likely to suffer from osteoarthritis. New Zealand has an aging population. The numbers of consumers suffering from osteoarthritis will continue to increase. Banks comments:“The Deep Heat brand is growing faster than the liniment category in Grocery and the introduction of Deep Heat Arthritis Relief will help continue to drive this growth*.” * Aztec MAT p/e 01/01/12, share of liniment category and dollar growth.

Fisherman’s Friend lozenges with the signature menthol ingredient have been invigorating consumers since 1865, says Lisa White, marketing assistant – Fishermans Friend at Stuart Alexander & Co. Available in a range of flavours, including sugar-free variants, Fisherman’s Friend has a flavour to suit everyone and is sold in over 100 countries. Fisherman’s Friend consumers are loyal and purchase often, says White. There are a variety of flavours to suit every taste and every occasion. Launching in 2012 is a new flavour: Sugar Free Sweet Liquorice, combining the right amount of sweetness with invigorating menthol for a long lasting burst of flavour and refreshment. Sweet Liquorice, a unique flavour for the Medicated Segment, provides a completely new flavour offering for consumers. Experiential sampling in Auckland, Hamilton, Wellington and Queenstown will ask consumers “Which Fisherman’s Friend are you?” The ‘Flirty’ or ‘Feisty Fisherwoman’ will hit the streets with Sugar Free Blackcurrant and Original Extra Strong flavours for consumers to sample and they can take away a full sized pack to enjoy or share with family and friends. Fisherman’s Friend flavours in New Zealand include Original Extra Strong, Sugar Free Blackcurrant, Sugar Free Fresh Mint, Aniseed, Strong Mint and new Sugar Free Sweet Liquorice. All flavours are packaged in resealable 25g packs ensuring convenience and freshness for consumers. Fisherman’s Friend products are available at all major retailers (RRP $2.50).

Cosmetics growing fast

id you know that the Cosmetics category is the number two beauty category and the fastest growth category worldwide*? Those retailers in NZ that have embraced Cosmetics as a category are also starting to reap the benefits of supporting this growth category. The Cosmetics category is worth in excess of an estimated $100 million to the total market in NZ, less than 7% of which is currently serviced by the grocery trade** and with Cosmetics having relatively low penetration in grocery, there is excellent future growth potential through channel switching. Alan Morgan, category manager CPD at L’Oréal told FMCG: “Within the Cosmetics category, Maybelline, the world’s No.1 Make-Up brand, contributes over $5.1 million of this total figure in grocery **.” He added: “Maybelline is a key partner in cosmetics; already 93.8% of the category and showing strong growth YTD +11%# (+20.5% in the last four weeks)^. Leading in this environment, we are looking to continually improve our image and support in the category.” And the benefits of having the Cosmetics category in store are more than just additional sales from this category – they also drive profit within the business: • Cosmetic shoppers spend 9% more on all FMCG categories than the average shopper; • Margin of Cosmetic is significantly higher than other categories; • Cosmetic shoppers spend 2.3 times more on Beauty categories versus ‘non-Cosmetic shoppers’; • The average Maybelline price is $21.80 versus the average of prepacked goods spend per item is $3.70.

NIELSEN Data YTD 2011

Creating a beauty environment Cosmetics are all about the ‘feel good’ factor – and who doesn’t want to feel good about themselves! The top three reasons cited for wearing make-up are: 1. “To make me feel good.” 2. “To boost confidence.” 3. “To make me look healthier.”^^ “Given this, our role is to provide the accessibility to consumers to allow them to achieve this,” says Morgan. The fact that 96% of women are using cosmetics means the supermarket channel is the perfect environment for their everyday cosmetic needs – and with 19% of cosmetic purchases being on impulse it is even more reason to be a part of this growth category. So what can we do to make it easier for the consumer to shop the Cosmetics category and create a beauty environment that will encourage impulse purchase and assist in product choice? There are a number of ways to achieve this: Having a display that has lighting to draw the customer in to the stand, offering education and informa-

tion on stand, and highlighting new products to consumers – and finally having inspirational images that target the emotions and give aspiration to our consumers. A common misconception of shrinkage is that the majority is lost through theft, but studies in the UK have shown that of the three main instances in shrinkage, theft was third at 29%, with errors and waste both at 35%. Nevertheless, Maybelline does look to combat shrinkage through theft by placing security tagging on its top skus prior to dispatch to market, and we recommend secure storage on site to help reduce both errors and wastage. “Make-up defines and strengthens the whole Beauty department creating a one stop shop for Health & Beauty and allows women to get their beauty basics in one location, saving them precious time – something that all our consumers value highly,” says Morgan. * International Panels **AZTEC Grocery Data MAT 16/11/2011 #AZTEC Grocery Data YTD 16/11/2011 ^ AZTEC Grocery Data last four weeks to 16/11/2011 ^^ International Research

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What’s Hot INTRODUCING Be Natural Manuka Honey & Spice Clusters Be Natural welcomes a brand new variant to their delicious cereal range, Manuka Honey & Spice Clusters. Bursting with simple, ‘real’ ingredients, this cereal contains their flavourful signature spice blend balanced by sweet Manuka honey. Being wholegrain lovers, Be Natural cereals retain the bran layer, making the whole range high in fibre. What’s more the entire range is free from artificial colours, flavours and preservatives. Be Natural cereal helps provide a real kick-start to your day. For more information please contact your Key Account Manager on (09) 300 7238 or your Territory Manager.

Erawan Flours

What’s Hot

From Thailand’s leading producer of gluten free rice products, Erawan Rice & Glutinous Rice flour is now available in NZ. Both products are packed in 500g bags with 5 languages (English as the first language). Erawan’s quality is renowned throughout the world as they also produce placebo tablets for the pharmaceutical industry. Rice flour is used in many Asian dishes, but now it is also popular for those on a gluten free diet. Glutinous rice flour is also known as sticky rice flour and often used for making rice balls or cakes that require adhesion. For more information on Erawan Rice products please contact: Oriental Merchant Pty Ltd Tel 0800 10 33 05, Fax 0800 10 33 11 Email: nzenquiries@oriental.com.au Website: www.oriental.com.au

FMCG MARCH 2012

AUNT BETTY’S SCANDALS MADE TO LOVE Like Chocolate, Caramel or Coconut, LOVE new Aunt Betty’s Scandals. Each Scandal contains outrageously indulgent fillings nestled in a crunchy chocolate flavoured shell. There are three delicious flavours to choose from: Coconut Roughs, Silky Caramels and Double Chocs. Ideal for after dinner, snuggled up with a movie or simply ‘just because’, one Scandal is never enough. Each pack contains six Scandals so there’s plenty to share with family and friends. Perfect as a chocolatey gift at Easter or to show you care on Mother’s Day. You won’t just like Aunt Betty’s Scandals, you’ll love them! Available at supermarkets nationwide, RRP $4.99.

SILVER FERN FARMS’ innovative NEW CUTS Silver Fern Farms’ proudly introduces new Lamb Medallions and Venison Roast to their retail range. Expertly packaged to lock in flavour and retain freshness, with simple recipe ideas and cooking tips included on packs. Silver Fern Farms’ range offers new ways to appreciate lamb and venison in everyday meals as well as on special occasions. For information phone Silver Fern Farms 0800 500 661 or visit www.bestcutsbestrecipes.co.nz

What’s Hot Help break the head lice cycle with

COLDREX PE COUGH, Cold & Flu

NeutraLice Advance is a new generation of pesticide-free head lice treatments that’s not only effective but fast and easy to use. Advance Lotion uses a suffocation process to treat lice and the eggs and due to its pesticide-free formula the head lice cannot develop resistance. Advance is suitable for sensitive skin and can be used on children over 6 months of age. RRP: From $16.95

#1 Cold & Flu Reliever in New Zealand*

For more information contact Wilson Consumer products 0800 651 044. Neutralice.com.au

Giving you the strength to fight a cold or flu.

Clever Kitchen Cleaning

Beat soap scum as soon as the haze sets in

For more information, contact your Kimberly-Clark Sales Representative. Kimberly-Clark New Zealand, Level 1, 86 Plunket Ave, Manukau, Auckland. Auckland (09) 250 2500, Christchurch (03) 374 5079

We all like squeaky clean showers, so as soon as the haze sets in on shower surfaces beat the build-up with VIVA® Shower Fast wipes. The unique dualtextured fabric gives a scrub-side to lift soap scum and a smooth-side to clean away, in ‘shower-fast’ time and without gloves or scratching. The built-in biodegradable anti-scum solution works to reduce future build-up, so the chore comes around less often. 30 two-sided wipes per pack - RRP $4.99.

What’s Hot

Even top chefs over-simmer sometimes! VIVA® Kitchen Scrub dual-sided wipes are the clever way to wipe away persistent spills, grease and grime in the kitchen, without gloves or scratching. The textured scrubside lifts the spill and the smooth side wipes clean, helped along by a unique built-in anti-bacterial, de-greasing solution. 30 wipes per pack - RRP $4.99.

*Source: Nielsen Grocery Data, Current MAT W/E 01.01.2012.

For more information, contact your Kimberly-Clark Sales Representative. Kimberly-Clark New Zealand, Level 1, 86 Plunket Ave, Manukau, Auckland. Auckland (09) 250 2500, Christchurch (03) 374 5079 march 2012 FMCG

g rocer y b us ine ss Wanted: Employers who make the most of their people Do you know an employer who gives employees practical encouragement to make the most of their time and talents? They need to be recognised, says the Equal Employment Opportunities Trust (EEO). The EEO Trust has just launched its EEO Trust Work & Life Awards 2012, which showcase forward-thinking, innovative employers who create environments where Michael Barnett, EEO Trust chairman and CEO of the Auckland everyone can perform to Chamber of Commerce their potential and contribute effectively to an organisation’s productivity. “We all want our companies to be successful, and people are the key to that success,” says EEO Trust chairman Michael Barnett, who is also CEO of the Auckland Chamber of Commerce. “It’s clear that if people are encouraged to make the most of their skills and balance their responsibilities at work and at home, they’ll be more committed and employers will get more of that magic workplace ingredient – discretionary effort.” He adds, “We know that organisations big and small all over New Zealand display the behaviours and practices that encourage greater engagement and productivity, and we’d love

to see them share their stories by entering the Awards.” Entries for the EEO Trust Work & Life Awards 2012 close on Thursday May 17, with the Awards gala dinner taking place in Auckland on August 30. Organisations of any size or sector can enter, whether or not they are members of the EEO Trust. Flexible work programmes, literacy and numeracy training, and projects to encourage greater workforce cohesion are among the initiatives that have been celebrated over the Awards’ life, says Barnett. Auckland yoghurt manufacturer EasiYo Products won an award last year, and chief executive Paul O’Brien says that the acknowledgement “has a halo effect on your business. And the recognition is good for your employment branding.” Find out more at www.eeotrust.org.nz, and see the stories of past entrants and winners at www.youtube.com/eeotrust. About the EEO Trust The EEO Trust provides employers with resources, information and tools to help them make the most of New Zealand’s increasingly diverse workforce. The annual EEO Trust Work & Life Awards celebrate forwardthinking employers who bring creativity and commitment to meeting today’s employment challenges, and in preparing for those of tomorrow. The EEO Trust is resourced through donations by member organisations and Government contributions. It is governed by a high-calibre Board of Trustees. l

Record turnout expected at Anuga FoodTec 2012 From March 27-30 2012 the international food technology sector will once again meet at Anuga FoodTec in Cologne, Germany. Anuga FoodTec offers an information and purchasing platform that covers the entire spectrum of technology and requirements for production in all segments of the food industry. With about 1300 exhibitors from 35 countries, Anuga FoodTec is expecting a new record turnout. The sixth Anuga FoodTec will present all the relevant themes and innovations for food processing, food packaging and food safety. TetraPak will participate along with Fuji Packaging, Grundfos, Kawasaki Robotics, Mettler Toledo, Multivac, Robert Bosch and Siemens, to name only a few. Anuga FoodTec is jointly organised by Koelnmesse GmbH and the German Agricultural Society (DLG). The trade fair will also be accompanied by top-class conferences.

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For example, the congress organised by the European Federation of Food Science and Technology will show the latest developments in the production of chilled food, with a particular focus on fresh-cut products. Anuga FoodTec will also be hosting International Fruit World. The congress, “An Opportunity for Fruit Juice?”, will focus on markets and trends, quality assurance, process technology and the raw materials procurement market. Industry experts and researchers will give a series of talks underlining the strategic importance of sustainable management and a conference on sustainable packaging is also planned. Also at the trade fair, a world-premiere live presentation of the ‘Robotic Pack Line’, which cannot be seen in this form anywhere else, will demonstrate new possibilities for the sector. For more information visit anugafoodtec.com. l

New glass designs for wine industry Leading glass container maker Owens-Illinois (O-I) has launched internally embossed wine bottles, providing New Zealand and Australian winemakers with striking glass packaging design alternatives. “Internal embossing offers brand-owners the chance to create a unique point-of-difference through the use of innovative packaging that will capture the attention of consumers in an increasingly cluttered market,” said Wendy Clark, national marketing manager, O-I New Zealand. O-I has manufactured two concepts at its Adelaide plant in Australia, featuring standout swirl and dot patterns. Other designs are available to customers wishing to explore this exceptional branding opportunity. Internal embossing of wine bottles follows O-I’s recent successful use of the technology in the beer segment. DB Breweries launched New Zealand’s first application of internal embossing in the beer market in June last year. “We believe internal embossing applied to wine brands could create similar market appeal by offering a truly novel approach to wine packaging,” said Clark. l

Did you know . . . O-I is the world’s largest glass container manufacturer and employs more than 24,000 people at 81 plants in 21 countries.

march 2012 FMCG

Green campaigns What to keep in mind when using green claims in your marketing, labelling, packaging and advertising.

onsumers are becoming more savvy about the environmental impacts associated with their buying habits, and businesses are increasingly trying to capitalise on this by incorporating environmental claims in their marketing, labelling, packaging and advertising. For example, businesses are investing in environmentally friendly bags, boxes and bottles in order to reap the rewards that green marketing may bring to their business or brand. However,environmental or“green” claims are not so straightforward and involve a level of complexity that businesses should be cautious about so as to not mislead or confuse consumers as to the nature of the claims being made. The Fair Trading Act 1986 and the Advertising Standards Codes seek to protect consumers in this way and should be considered at the outset of any green marketing campaign. Green marketing has been recognised as a powerful tool to enable businesses to increase market share. Customers are often willing to pay a premium for a green product or service, and in some product categories a green claim may offer a unique selling point and differentiate it from other competitor products. Green marketing can come in 38

FMCG march 2012

many different forms and at all stages of the production cycle. At the very outset, you may have a product that is produced or manufactured according to “organic” standards, such as Fair Trade organic cocoa. Further down the track, the product may be manufactured using methods that reduce the number of carbon emissions. Sometimes even the name of the company may imply its environmental awareness, for example the “Ecostore Company” and “KiwiGreen.Biz”. However, before jumping on the green marketing bandwagon it is worth considering whether green marketing is particularly suited to your business, such as whether the target audience for your product would care if the product or company is green, or whether it would give your product a competitive edge over others. Further, while the benefits of green marketing are persuasive, there are also some legal watch-outs to be aware of when considering making such claims. The Fair Trading Act 1986 (FTA) contains various general prohibitions on misleading and deceptive conduct. These provisions are contravened if conduct is capable of misleading or deceiving, and it is irrelevant whether anyone is actually misled or deceived.

The FTA also prohibits false and misleading representations about specific characteristics of goods and services. Of particular relevance to environmental claims, it is a breach of the Act to make a false or misleading representation that goods are of a particular kind, standard, quality, grade, quantity, composition, style, or model, or have had a particular history, or particular previous use. Essentially, any description advertised in association with a product must be accurate and the product must comply with that description. Claims should also be able to be substantiated (with evidence) and be specific (rather than general or vague) and qualified. Some common claims that raise concerns are “green”, “environmentally friendly” or “environmentally safe” and “carbon neutral”, as these do not say much about how the product is actually benefitting the environment by itself. Such claims would need to be further explained, such as referring to the specific part of a product, or its production process that the claim is made about. For example, in 2005 the manufacturer of Robocan insect repellant and insect killer, Environmental Air Care (EACL), marketed and packaged the products in a way that suggested that the products were substantially or entirely natural. Its website described

featu re

the products as “environmentally safe, biodegradable” and used “most natural ingredients”. However, in reality only a small percentage of the active ingredients in the insect repellant and killer were natural ingredients and it was held that such claims amounted to a breach of the FTA.

Endorsements The FTA also requires that a business must not represent that goods or services have any sponsorship, approval, endorsement, or affiliation they do not have. In the above example, EACL also promoted both products as “MAF approved” therefore implying mass endorsement of the products. However, the repellant didn’t specifically require MAF endorsement, whereas the insect killer did, but it had only been given limited approval. This was held to be a misrepresentation that MAF was somehow endorsing the naturalness of the product, and in breach of the FTA. In addition, the Advertising Standards Code for Environmental Claims (the “Code”) covers all advertising containing claims for environmental benefit, and includes packaging shown in advertisements. One of the basic principles under this Code requires that all generalised claims for environmental benefit must be assessed on the complete life-cycle of the product and its packaging. Therefore, “absolute claims” such as “environmentally friendly”, “environmentally safe” and “100% environmentally sound” are not acceptable. For example, a complaint was raised in 2008 against a website advertisement for a multipurpose cleaner called “The Green Stuff ” as “non toxic; non flammable; biodegradable; food safe; environmentally friendly”. The term “environmentally friendly”

Before jumping on the green marketing bandwagon it is worth considering whether green marketing is particularly suited to your business. was considered to be an absolute claim and the advertisement was held to be in breach of the Code. In 2007, Saab Automobile advertised a range of its cars as being “green” and “carbon emissions neutral across the entire Saab range”, however it was found that planting 17 new trees would not be sufficient to offset the carbon emissions of the complete life-cycle of the product and so this also amounted to a breach of the Code. In addition to the legal watch-outs highlighted above, consumers are becoming more knowledgeable and sceptical about vague and baseless environmental claims, also known as “green washing”. Therefore, it is important that you don’t simply “green wash” even if the message is based on fact. As such, many businesses have chosen to comply with eco-labelling standards or include sustainability reporting to back up their campaigns. More commonly, businesses are becoming part of certification programmes such as the “Enviro-Mark” or “Green Carbon” marks, which give some further assurance to consumers that their claims are legitimate. Overall, if you do decide to adopt a green marketing strategy for your company or a new product/brand, any environmental claims being made should be factually based, transparent, specific and relevant to New Zealand. While the penalties for breaching

the FTA can be quite serious (fines of up to $60,000 per offence for individuals and up to $200,000 per offence for a company), the most damage usually occurs to the business’ brand and reputation as essentially green marketing appeals to customers “who care” and once this trust has been lost, then it can be almost impossible to regain. To avoid breaching the law, the Commerce Commission has issued specific Guidelines in relation to green claims and carbon offset and neutrality claims (available at www. comcom.govt.nz/f air-tradingdownloads/). These Guidelines are a useful tool when considering making such claims in respect of your business activities. The Guidelines recommend implementing an in-house checking system to ensure that businesses and their staff do not breach the Act. This is important because a business is responsible for the action of its staff and agents and liability is not excused for accidental or non-deliberate conduct. Having a checking system in place will help to minimise potential breaches of the Act. Mark Gavin is a partner at law firm Hudson Gavin Martin, which specialises in intellectual property and technology law. Also contributing Stephanie Melbourne, solicitor of Hudson Gavin Martin. Email: mark.gavin@hgmlegal.com. march 2012 FMCG

A growing problem Katherine Rich considers sugar tax and obesity in New Zealand.

here’s not much doubt that New Zealand has an obesity problem. The OECD says Kiwis are the third-fattest people in the world. We’re also told the problem is growing, and that’s something that we as a country should be concerned about. But to turn this problem around we need to concentrate on what will work. We don’t need stupid ideas that are nothing more than modern-day snake-oil theories. That’s what putting a tax on sugar is. The argument for such a tax is that by raising the price of goods containing sugar, people will switch to those with less or no sugar because they are cheaper and, hey presto, obesity levels will drop. But this argument is seriously flawed on several fronts. The most telling of these is that evidence shows sugar intake is not associated with body weight. That evidence comes from a highly respected source – Associate Professor Winsome Parnell and a team of nutritionists at the Department of Human 40

FMCG march 2012

Nutrition at Otago University. In 2008, they investigated the relationship between body mass index and intake of sugars and fat, in New Zealand adults and children, by analysing data from the 1997 National Nutrition Survey for Adults, and the 2002 Children’s Nutrition Survey. And what they found surprised many: “Sugar intake was significantly lower among obese compared to normal weight children. In adults and children, those with the lowest intake of sugars from foods were significantly more likely to be overweight/ obese.” Their conclusion: “Current sugars or sucrose intake is not associated with body weight status in the New Zealand population.” Someone wanting to take a cheap shot could dismiss these findings by pointing out that Parnell’s study was funded by the sugar industry (which it was). But consider this. This was an analysis of two surveys conducted by the university for the Ministry of Health. Those surveys helped assist the work of government and nongovernment organisations, and were used for forming development of food and nutrition policies and guidelines, such as the Ministry of Health’s Food and Nutrition Guidelines, and the Nutrient Reference Values for Australia and New Zealand. This was no biased research project asking leading questions, and there is no doubting Parnell’s brand as a public health expert. She and her team had absolutely nothing to gain from finding other than what was in front of them. The 2008/09 Adult Nutrition Survey, also conducted by the university for the ministry (and now on the

ministry’s website) made an equally fascinating finding: sugar intake by males in the 11 years since the 1997 survey had dropped (there was no change in females) at the very same time there had been an increase in mean weight and body mass index, and an increase in the prevalence of obesity in both sexes.

The real issue People who know far more about the science of this issue than I do, say obesity is not a sugar-intake issue – it’s a fat-intake issue. And a lot of public health activists gloss over that, or simply don’t (want to) understand the link when discussing sugar or the genuine drivers of obesity. Outspoken Auckland GP Jim McVeagh has plenty to say on this: “Apart from the very few people who have some serious metabolic disorder, all that causes obesity is taking in more calories than you burn up. If you exercise and eat fewer calories, you will always lose weight in the long run.” He says humans are “wired” to like the taste of fats and carbohydrates because they are the high-calorie foods we need to survive. He points out that potatoes, white bread, rice, and pasta become sugar in the body as fast as pure cane sugar. “Taxing sugar is like sticking your finger in the dyke when the tsunami alarm has just gone off.” He points out some difficult conundrums, asking that if we tax sugar, should we not also tax other foods, which either produce sugar in the body or which have natural sugars in them. As examples he points to honey, which is 80% sugar, tomato sauce (16%), fruit juice (10%), milk (4%), bread (2%). So, while two comprehensive

featu re studies on New Zealand (rather than overseas) consumption habits debunk the ‘sugar causes obesity’ claim, those who call for a tax on sugar would clearly be happy to see the price of many foods, including staple foods and fruit juices, rise. And we know who loses out if that happens – New Zealand families, many of whom are already struggling to pay their bill at the checkout. If, after all this, you still believe sugar causes obesity, and that a tax is the best solution to the problem, consider the findings of British nutrition expert Professor Jack Winkler. He estimates that a 10% tax on sugar-sweetened beverages could lead to a consump-

tion decrease of 7.5ml per capita per day. “In plain English, 7.5ml is 0.4% of the most popular two-litre bottle, less than a sip. It would not even cut sugar intake by a gram …” Over the past six months there have been calls for fat taxes, salt regulation, and sugar taxes.These are all blunt attempts to get New Zealanders to embrace healthier lifestyles, and though the Government would generate significant tax revenue from them, it’s very unlikely such taxes would change habits. Calls for a tax are an unnecessary attack on sugar, which should actually be part of a healthy, nutritional diet. This is simply more of the same

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

from a public health lobby keen to demonise a number of food ingredients to no obvious advantage, and probably serious disadvantage, for consumers. All a tax would achieve is make nearly all food more expensive for families who are already struggling with their grocery bill, possibly even putting the health of children and the elderly at risk. It would not improve our health, it would just penalise moderate consumption. It all sounds like a good case for a balanced diet and a little more exercise. We have much progress to make, but demonising sugar is not the answer.

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re c r u i t me nt

Do I really need that LinkedIn profile? There is a growing disconnect in where we search for jobs and how we will actually find one, says Hamish Marr.

Hamish Marr, senior consultant FMCG – Sales & Marketing OCG Consulting Ltd

Job seekers are hunting increasingly for work on Facebook since most of them of course have a profile on the world’s largest social network. However, new data shows they might be better off looking on LinkedIn (duh) and Twitter (hmm). In fact, LinkedIn networks still drive more views to job applications than Twitter and Facebook networks combined. About 48% of recruiters use LinkedIn exclusively. These recruiters have an average of 661 connections and don’t leverage the other two networks for social recruiting. From there, recruiters use Twitter more than Facebook. Despite the fact that recruiters have fewer connections on Twitter (37 followers on average), 19% are connected to both LinkedIn and Twitter, while only 10% are connected to both LinkedIn and Facebook (245 friends on average). Specifically for job applications, LinkedIn drives nine times more applications than Facebook and three times more than Twitter. Interestingly, a Twitter follower is almost three times more likely to apply for a job than a LinkedIn connection, and more than eight times more likely to apply than a Facebook subscriber. This suggests that Twitter might be a highly underutilised social recruiting channel. Furthermore, recruiters’ Twitter followings drive almost twice as many job views per job as their Facebook fan bases. The data comes from recruiting software company Bullhorn, which analysed the online activities of 35,000 recruiters.The full 18-page report (Google:“The

Bullhorn Reach Social Recruiting Activity Report”) offers insight into the use of social media in recruiting, comparing the big three social networks: LinkedIn, Twitter, and Facebook. In summary, here are some key findings: • Despite earlier adoption among recruiters, LinkedIn continues to grow at the fastest pace.The average recruiter adds 18.5 LinkedIn connections each week, compared to 3.3 Twitter followers and 1.4 Facebook friends. • LinkedIn drives more views per job than Twitter and Facebook, generating three times the amount of views of Twitter and six times the amount of Facebook. • Recruiters who post jobs on social networks are likely to receive more applications from LinkedIn, with the social network driving almost nine times more applications than Facebook and three times more than Twitter. • Looking at the relative number of applications per contact, a Twitter follower is almost three times more likely to apply for a job than a LinkedIn connection. “If you are serious about finding a job, Facebook should not be your first stop. There is a huge disconnect between where people are looking for jobs and where they will actually find one – job seekers are focusing on Facebook, while recruiters are on LinkedIn,” Bullhorn president and CEO Art Papas said. At OCG Consulting our goal is to help companies and candidates connect with jobs, companies and people that fit and we still view social media as simply an emerging ‘component’ in a job search.

Fiona Hill Dale Rous Hamish Marr

Kevin O’Shannessey

www.ocg.co.nz | 09 377 7575 42

FMCG march 2012

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Presidentâ&#x20AC;&#x2122;s Update

Vice-Presidentâ&#x20AC;&#x2122;s Update

Hello All

2010 has been a year filled with cutbacks and cancelled TV shows, theatre has had limited ticket sales, films have been delayed and crews have waited while their start dates disappear or get pushed out. Without sounding clichĂŠd, although it is true that when the going gets tough the tough get going I have been delighted at the help I have had in putting together the well supported 8th annual WIFT Awards. Doing so has reminded â&#x20AC;&#x201C; even reassured â&#x20AC;&#x201C; me that we indeed do have a thriving supportive community out there who â&#x20AC;&#x201C; even in tough times â&#x20AC;&#x201C; freely give their product, their expert advice and most of all their TIME. The show this year will again deliver a starâ&#x20AC;&#x201C; studded top rating entertainment extravaganza with a few surprises. The Eradus after party will give many a chance to catch up and celebrate the successes of the year (there have been so many!) but letâ&#x20AC;&#x2122;s not forget that the heart of the event is to support WIFT which, without such events and the opportunity to fundraise, could become yet another victim of the recession. I would like to make a special welcome and mention to Susi Newborn, our new ED, and her side kick Nia, who have got their hands dirty with me, and had fun throughout, as well as my good mates and fair dinkum producers Gavin Wood and ChairAli Black. Special mention has to go to our Chair person Catherine Fitzgerald who has supported us all through this difficult year and just quietly got the job done. Enjoy the celebration, you deserve it, and EUREKA cheers to all you women out there who make a difference and are changing the world one frame at a time! Debra Kelleher Producer WIFT Vice President

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he WIFT NZ Awards 2010 shine the spotlight on 18 women whose contribution to the screen industry has marked them out as women to celebrate this year. With some at the helm of major ground breaking projects and businesses, and others tirelessly and steadily doing what they do so well in the engine room, all of our finalists demonstrate how important both leadership and collaboration is to delivering rich, and rewarding and thought provoking entertainment. The diversity of achievements is remarkable â&#x20AC;&#x201C; we see the gamut of the screen industry â&#x20AC;&#x201C; TV and film, the craft and technology, educational, documentary, entertainment, drama, marketing, current affairs, programming and policy making represented here. Selecting winners in each of these categories was a challenge to the judges who undertook this difficult job so conscientiously. On behalf of WIFT NZ we thank them for their time and generosity of spirit Behind all of these women, we know are other women, the industry at large, families and the others who support what we do and the audiences whose enjoyment of our work makes it the best job in the world. When times are tough, this is an industry which knows how to pull together and support one another. WIFT NZ actively pursues this goal: all its activities are designed to lead the development and strengthening of the screen industries and the role of women in them. For me and on behalf of the WIFT NZ Board, it is an honour to serve the purpose and members of this organisation. And we always welcome new members and supporters! Catherine Fitzgerald WIFT President

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In-store marketing The experts at CSM, Image Net and Crossmark explain what’s important in marketing, merchandising and planograms for 2012.

rossmark New Zealand MD Grant Leach says brand marketers often talk about a product’s consumer ‘mind share’, which is prompted and unprompted recall, when talking about the power and influence of brands. While the effect of a brand’s mind share on a consumer certainly can’t be overlooked or denied, more and more emphasis is being placed on ‘arm share’ by manufacturers. This concept refers to the opportunity to wield influence while the customer is standing in front of the planogram and is within arm’s reach of your products and those of your competitors. There are numerous tools in the toolbox for ‘arm’s length’ in-store marketing that can be used to direct the shopper’s arm in all manner of directions – straight ahead, up or down and to the left and right. Some of the strategies commonly deployed include: • Price promotions • Bundled offers

FMCG march 2012

• Companion product deals • Shelf placement • The size of the manufacturers’ on-shelf brand billboard • Off-location displays • Promotional activity • Superior merchandising • Superior relationships with store staff • In-store point of sale marketing • In-store theatre • In-store events such as product demonstrations. The reasons for the changing landscape are manyfold. Leach explains:“In recent times we have seen a substantial increase in the deployment of instore price promotions, to a whopping 56 percent (Nielsen) in New Zealand over the past 24 to 36 months, which is the highest rate in the western world! “We have also seen a significant shift in the relationship between retailers and manufacturers, as retailers have assumed greater influence over manufacturers due to the power of what is in effect a duopoly.”

As retailers exercise their increasing power over manufacturers, there is a greater expectation on dollars spent in the last six feet of the sale, where arm’s share comes into play, at the retailers’ end.The effect of this is that they now have the power to say that if you don’t comply, that you could be penalised in terms of planogram representation instore, says Leach. It is important to realise that while brand has an impact on the purchase decision, it is no longer the dominant force it once was – particularly for fast moving consumer goods. Because of recent economic hardships, customers have been forced to ‘cut the cloth’ according to what they can afford, instead of what they may like to buy. Taking these factors into account, we can see why the last six feet of sale has become the most crucial moment in the retail chain, says Leach. According to recent research in the US, in-store marketing spend increased by over 50 percent* last year, which

featu re is more than the increase in spend on digital media.This actually makes sense when you consider that more than 50 percent of the purchasing decision is made in store at armâ&#x20AC;&#x2122;s length from the planogram, says Leach. â&#x20AC;&#x153;If marketers and sales managers were to review the allocation of total â&#x20AC;&#x2DC;support spendâ&#x20AC;&#x2122;, you would expect to see a significant shift away from prestore activity like above-the-line TV advertising, towards in-store activity because the power to influence the consumer at the moment of truth is universally recognised and has been the second poor cousin in the past.â&#x20AC;? He adds: â&#x20AC;&#x153;When reviewing any category we assess the following three key strategies. â&#x20AC;˘ Product in multiple locations â&#x20AC;˘ Pricing and promotional offers â&#x20AC;˘ Effective in store communication.â&#x20AC;? To improve the overall health of a brand and maximise the influence in the last six feet of the sale, brand

owners should consider the Retail Brand Health (RBH) method, specifically the four stages of the shopperâ&#x20AC;&#x2122;s path to purchase: access, attract, engage and motivate, suggests Leach. In summary, Leach says: â&#x20AC;&#x153;Armâ&#x20AC;&#x2122;s length in-store marketing is only going to increase as retailers demand more from manufacturers, as consumers continue with their price-sensitive buying habits and stakeholders demand share and/or value growth over longer term investment in brands. I canâ&#x20AC;&#x2122;t see this changing in the near future until we see a significant improvement in our economic situation.â&#x20AC;? *POPAI research

CSM So you have your products rangedâ&#x20AC;Ś what now? You need a merchandising team. Merchandising is crucial to ensuring that your products remain fully stocked and effectively displayed at all times.

Merchandising FMCG products is the most effective method for continuous growth in the sale outlet. It is the process of effective arrangement of products with the purpose of enhancing the sales from that point. Effective arrangement is not only about planogram maintenance; it involves strategic positioning such as being at eye level, being placed before your competition, negotiating for multiple shopping points and creating impulse purchases. It is simply not enough to just have your product shelved somewhere. CSM is committed to providing first class sales and merchandising services for a whole range of retail industries, enabling their customers to focus on their primary business objectives. CSM provides tailored in store support. Whether you require temporary trained staff to fit within your existing team or a dedicated team to service your products on a regular call cycle, CSM has the answer. The

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feat ure team consists of merchandisers, sales reps, in-store demonstrators and secret shoppers. Basically, they’ve got it covered. CSM can create call cycles or follow existing call cycles. Ultimately, its goal is to make your job easier, reduce your costs and maximise sales. CSM is New Zealand owned and operated and can assist nationwide, relieving you of the management and human resource tasks. A compliance check is a service that is particularly relevant for overseas suppliers, suppliers whose reps have a monthly or 6-weekly call cycle, or if you just want a snapshot of how your products are looking and being serviced. CSM offers this service, which covers planogram maintenance, mystery shoppers who will check in store awareness and product knowledge of your lines, strategically timed store visits to ensure costly promotions are being supported with POS material in place. Reporting, which can include images and competitor activity, will give you valuable feedback to determine if your products are displayed as effectively as possible, if you need to implement any changes to your current merchandising methods or upskill your reps.

Planograms – improving the image A picture is worth a thousand words and applying this to planograms makes them a much more useful planning and management tool. In basic terms, planograms are a graphic image or diagram that includes fixtures and product images that are specific to a category. Today the process of planogramming has become a science and thanks to today’s space management software when a planogram is fully populated with product images, they give retailers an accurate representation of how the products will look once the planogram is implemented in-store. For over a decade, Image Net has been providing the space management community in Australasia with high quality product images and metadata for use in planograms. Image Net MD James Peoples says: “Retailers are putting greater emphasis on planograms, so when presenting planograms to retailers it pays to have a planogram fully populated with product images to give a realistic look of how the category will appear on shelf.” It is about much more than just pretty pictures. “Retailers are looking for greater consistency across their stores to give customers a similar shopping experience no matter what the location and then tweaking slightly for demographics,” explains Peoples. Fully populated planograms also assist suppliers with their ranging

negotiations with retailers. Accurate layouts of how a bay would appear help the buyers decide on if and where new product sell-ins would be positioned. Planograms fully populated with images have other benefits as well. Merchandising teams love them because they are easier to implement, in-store execution improves and more stores comply with the planograms, says Peoples. As a supplier, having access to a library of digital images such as Image Net’s “Fetch” database is vital to be able to provide retailers with a planogram fully populated with not only your own product images, but product images from across the category. “By including competitors’ images, it shows a category manager you know the category you’re trading in and aren’t just using the planogramming process to promote your own products.” Peoples explains: “A product image on a planogram can sometimes be the difference between getting some products ranged or not and we’re helping more and more clients with images for their products. “Category managers are really starting to appreciate the value of digital images as part of the overall product promotion process. Images from the Fetch database are being used for online shopping sites, as part of email promotional campaigns, social media such as Facebook and displaying on mobile platforms,” says Peoples.

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CONVENIENCE CHANNEL FOCUS

Contact: 63A Morrin Rd, St Johns 1072, Auckland • 09 551 5202 • info@kettlekorn.co.nz • www.kettlekorn.co.nz

Moreish snacks A snapshot of new snack products in the Convenience channel.

Is Kettle Korn salty, or is it sweet? The answer is found by happily munching one handful after another of this delicious, completely moreish gourmet popcorn treat. The truth is that Kettle Korn is the perfect blend of a slightly salted, lightly sweetened popcorn. NZ Kettle Korn began operations in April 2010 as a concessionaire participating in over 100 Auckland area festivals and markets. Kiwi families

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quickly became infatuated with this unique American style popcorn treat. In January 2011 a chance meeting with a food/beverage manager from Event Cinemas changed the company’s direction instantly. The manager said: “This is the best popcorn I have ever tasted. If you come out with a retail line we would love to carry your product at our cinemas.” Trent Brock (pictured above) and Michael Howe, the owners of

NZ Kettle Korn, understood the importance of recognising and acting upon such an incredible opportunity. As a result they proudly launched a retail division of their company in June 2011. The unique flavour of Kettle Korn is as a result of the intense heat from the kettles. The heat infuses a little salt and a little sweet into each kernel. Kettle Korn can never be mass produced or created in a microwave. Both Brock and Howe agreed that they would never sacrifice the uniqueness of the flavour or the quality of the product by mass production. The entire process is completely manual from the weighing of the ingredients to the sifting of the final product. Brock says, “we take great pride in the fact that we provide a handmade gourmet family treat”. The NZ Kettle Korn team is hoping that Kiwis will continue to seek out quality, all-natural snacks for their families for years to come. Howe said, “Consumers are tired of looking at a nutritional label and not recognising half of the ingredients; our product has four simple ingredients that everyone will recognise.” Kettle Korn has been an instant hit with families with allergy issues. It is lab-certified gluten, soy, dairy, shellfish and peanut free (the entire facility is 100% nut free). The company has had consistent monthly sales increases. It continues to build brand awareness and loyalty through dedicated weekly tasting sessions (at all new markets), consistent brand exposure at large NZ festivals and a dedicated PR team acting upon unique opportunities to expose Kiwis to the brand. It recently supported

the New Zealand Breast Cancer Foundation with a donation of 5000 retail bags for a movie night national fundraiser. The company is also in the process of adding several new bag sizes, including a single serving size (25-30 gram) and a multi-family pack. NZ Kettle Korn will also be introducing several additional flavours in 2012 and 2013 (sweet and savoury options). Howe and Brock are both still amazed at how quickly they have grown their brand. Howe said: “We are truly blessed. Almost weekly we receive more exciting news! Last week alone we received an inquiry from an airline that wanted to consider our product as an on-board snack item and another request for 40,000 bags to be shipped to Aussie.” Howe and Brock have built a strong network of strategic alliances with businesses that have helped them grow, including the House of Fine Foods, Curious Ad Agency and Spark PR and Activate. Continued growth will require additional strategic partnerships to allow for the full potential of their company to be

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realised. Brock said, “We really are passionate about our brand and we feel with our commitment to quality and the right partnerships the sky is the limit to our growth.” New home for Pringles Breakfast cereal manufacturer Kellogg has announced the purchase of the Pringles snack brand from Procter & Gamble for US$2.7 billion. The deal has happened below the radar of industry analysts and commentators, confirming opinions that breakfastfocused producers need to move into other product areas to sustain their performance. Pringles is a strong brand for Kellogg to lever open the snack food business. It immediately becomes the company’s biggest seller after Special K, with revenues of US$1.5 billion. Doritos ‘Burn’ teams with Pepsi Max ‘Ceasefire Lime’ Doritos and Pepsi Max have come together to create the ultimate fire and ice combo designed to test the endurance of even the most tolerable taste buds. It’s time to open fire with

Doritos ‘Burn’, a fiery and delicious chilli seasoning, warming consumers up perfectly for a Pepsi Max ‘Ceasefire Lime’ recovery. The exciting combination is designed to shock and sooth – the perfect mix of tempting heat and calming cool. Doritos ‘Burn’ corn chips will send heat levels through the roof with their superhot flavour, only to be extinguished with the cool sensation of Pepsi Max ‘Ceasefire Lime’ – a flavour developed specifically to put out the Doritos ‘Burn’ fire. The limited edition flavours have been designed by Doritos and Pepsi Max to work together, and is the first true FMCG joint venture of its kind. It’s also the first time in its history that Pepsi Max has created a new flavour in New Zealand. l

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Queensland bans tobacco retail displays Queensland’s ban on the retail display of smoking and related products under the Tobacco and Other Smoking Products Act 1998 commenced on 18 November 2011. Active enforcement of the law commences on 1 March 2012. From this date forward, enforcement officers throughout the state will be conducting proactive inspections at locations where smoking products are sold. Retailers who are not in full compliance with the law from 1 March 2012 are liable to strict penalties, including prosecution, unless they have specific, written advice from Queensland Health that further time will be given. l

Global energy drinks market grows to $37 billion Energy drink consumption surged by 14% in 2011 to 4.8 billion litres, adding over 1.5 billion litres since 2007, according to the latest report from leading food and drink consultancy Zenith International. Average growth over the past five years has been 10% a year. Value has risen even more sharply, by an average 13% a year, to ¤26,500 million or $37,000 million in 2011. Energy shots have rocketed from $2000 million in 2007 to over $4700 million last year. “Energy drinks remain the most dynamic segment in the soft drinks market, with strong growth in most countries. This is testament to its combination of both fun and functionality,” commented Zenith Market Intelligence director Esther Renfrew. The top ten consuming countries among the 57 covered by the Zenith report were the United States, Vietnam, China, United Kingdom, Thailand, Mexico, Australia, Germany, Poland and Saudi Arabia. Australia, New Zealand, Austria, Saudi Arabia and Israel had the highest consumption per person. North America is still the leading region, with 36% of global volume in 2011, followed by Asia Pacific with 22% and West Europe with 17%. Latin America has made significant gains over the last few years, rising to a 7% share. Australasia has also seen its volume share nearly double to 4%. By 2016, Zenith estimates that the global market will have

FMCG march 2012

jumped by a further 35% to 6.5 billion litres. Among other findings in the Zenith 2011 Global Energy Drinks report: • The world leading brands are Red Bull, Monster and Burn in energy drinks, and 5-Hour Energy in energy shots. • Key regional brands include Lipovitan in Asia Pacific and V in Australasia. • Supermarket and other private labels accounted for 5% of global volume in 2011. • Diet energy drinks hold a 15% volume share. • 79% of 2011 volume was sold in cans. Zenith’s definition of energy drinks excludes glucose-based products and sports drinks. l

Easy politics, poor economics Trina Snow, executive director, NARGON.

Minimum wage decision will not help young workers, says Trina Snow.

Minister of Labour Hon Kate Wilkinson has announced the Government will increase the minimum wage from $13 to $13.50 per hour starting April 1. She also confirmed that the training and new entrants’ minimum wages would increase from $10.40 to $10.80 (80% of the adult minimum wage) on the same day. The Minister said, “those working full time on the minimum wage will earn an extra $20 a week or more than $1000 a year”. In her opinion,“this increase strikes the right balance between protecting low-paid workers and ensuring that jobs are not lost during these tough economic times”. We respectfully disagree. NARGON is a non-political industry association which has consistently worked with governments across the spectrum to advance the interests of the retail grocery sector. While we have supported a number of recent government initiatives, we recommended against yet another big jump in the minimum wage. It has gone up a cumulative 12.5% over three years – a rate derided by right-wing economists as ‘far too much’ and left-wing commentators as ‘far too little’. Minister Wilkinson said her National-led Government is “focused on growing the economy, creating jobs and boosting incomes for all New Zealanders”. Those are indeed laudable aims. However, the National Party employment relations policy she launched during the election campaign clearly noted “Department of Labour research suggests that abolishing the Youth Wage in 2008 has seen up to 9000 jobs disappear for 16- and 17- year-olds.” While the proposed new Starting Wage will help address the issue, it does not go nearly far enough. Jobs for our young people should be a priority. The youth unemployment rate is unacceptably high and a lot of the blame can be placed on the high minimum wage. After all, if the key to wealth was simply legislating pay rates the Government could declare a minimum wage of $100 an hour and we would all be rich. Of course, the reality is quite different. Supermarkets

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know that because they are on the front line every day. The retail grocery industry is a critically important sector of the New Zealand economy. The industry is labourintensive and, though characterised by a high level of casual and part-time employment, is a major employer, particularly of workers with no prior experience. The nature of our industry means it is able to offer the kind of flexible employment a number of employees are seeking. For many young people a job in their local supermarket or dairy is their first experience of paid employment, providing them with valuable work experience for the future. As we have told the Government on numerous occasions, the retail grocery industry is a low-profit margin industry and therefore forced increases in fixed costs such as wages have a direct and significant impact on bottom line profitability. It is obvious that profitability is essential if employers are to stay in business and continue to employ real New Zealanders. Because the grocery industry deals largely with essential items, passing minimum wage costs on to customers is often more difficult than it might be if the industry provided less essential services. Consequently, any increase in fixed costs can threaten business viability (particularly for more marginal businesses) and/or require a reduction in staffing levels, adversely affecting both service and employment levels. Neither outcome is satisfactory. NARGON argued for no increase in minimum wage rates but had also suggested that, if the Government was intent on making an increase, then it should be modest and certainly no more than inflation. We are disappointed the Government again ignored our advice and evidence. Most economists agree that a high minimum wage too often has the opposite effect to that intended. A minimum wage guarantees a minimum payment level but it cannot guarantee jobs. It is our experience that an arbitrary minimum wage increase simply reduces the ability of business owners to provide employment opportunities. New Zealand’s minimum wage, at 52% of average hourly earnings, is already more generous than the rate in 24 other OECD countries. Advocating for an ever-increasing minimum wage is easy politics but poor economics. Our politicians need to have the courage to make the decisions which will help young people into real jobs.

To find out about ad packages and rates contact: • Peter Corcoran on 021-272 7227 email peterc@mediaweb.co.nz • Juleigh Buchan on 021-140 3456 email juleighb@fmcg.co.nz

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NZ V8 champion Andy Booth and the Woodstoc k girls at Hampton Downs.

Wattie’s bean harvester on the job.

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Has your team been part of a charity event, opened a new factory, or dreamed up a colourful promotional activity? Send us your favourite photo and go in the draw to win one of three copies of A bloke for all seasons: The Peter Yealands Story (worth $34.99)! With a career spanning 50 years, Yealands could be described as one of New Zealand’s most successful entrepreneurs. Capturing his life story and business endeavours, A bloke for all seasons: The Peter Yealands Story, by Tom Percy, is available through Whitcoulls and independent retailers. Just email your high res image with a caption and your contact details to: editor@fmcg.co.nz

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The rise and rise of organics Keith Stewart takes a close look at an increasingly important market sector. Although in recent years there has been a slow-down in the global uptake of organics, in part because of a slump in economic conditions, organics continues to grow its share of the market. It is also attracting more and more operators in the local beverage industries, in part because at the highest quality level organics carries a patina of credibility that enhances premium claims. According to the latest edition of The World of Organic Agriculture, the standard reference text on global organics production and markets, 10 million hectares are committed to organics around the world, and the international market for organic products is estimated at US$59.1 billion annually. This is not a market to be ignored, which is why New Zealand Winegrowers is currently asking for input from its members on what sort of sustainability management regime

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should be the standard for New Zealand viniculture. The news that Central Otago producer Quartz Reef is the latest winery to become biodynamically certified, under the official Demeter logo, is a sign that at the serious quality end of winemaking, organics is taking a hold. This could be because the impressive list of top brands, such as Domaine de la RomanĂŠe Conti, Domaine Leflaive, CoulĂŠe de Serrant, Albert Mann, Chapoutier, Jacques Selosse, Opus One, Henschke and Castagna, is pretty convincing by itself. Currently there are 1400 hectares of vineyard certified as organic in New Zealand, with 40 wineries producing at least some organic wines, and 12 which are 100% certified organic or Demeter, which is the certification label for the biodynamic management culture which is also fully organic. This gives New Zealand a strong organic

component in its wine production, the equivalent, or better than, any other nation with 7% of vineyards currently certified. Developments at Quartz Reef make the companyâ&#x20AC;&#x2122;s bottle fermented sparkling wine the only organically certified prestige bubbly in the country. The biodynamic status of Rippon, Seresin, and The Millton Vineyard add a similar gloss of high quality to the organics sector in this country that equates with international standards. New standards Another recent development in the organics sector that is likely to have an impact on New Zealand is the twin announcements from Europe declaring a new agreement with the United States, and a new certification standard for organic wine. Until now there has been no official classification of organic wine, as various sectors of the organics

The international market for organic products is estimated at US$59.1 billion annually. movement wrangle over the use of sulphur in winemaking. So until this standard, organic wine has meant only wine made from organically grown grapes. The advent of a European standard, which will apply to New Zealand wines exported to Europe, does give wineries in this country the incentive to make their wines according to the new EU standard. This allows for use of sulphur during winemaking, but at significantly lower levels than for standard wines. While this is posing winemaking challenges, it is workable according to European producers, and may be a way forward for certification standards here. The US/Europe agreement is also likely to bring changes in the New Zealand winemaking scene, if only because it eliminates a barrier to European organic wine trade in the US. In the past, New Zealand has had the advantage through New World wine agreements, which admit wine made under local regulations in trade between Australia, New Zealand, the US, South Africa and Canada. The new EU/US deal will see the same concessions made in trans-Atlantic trade in organic wines, including the new winemaking regulations. Organics wine pioneer James Millton of The Millton Vineyard in Gisborne (pictured) says, “Organic regulations are a maze, so anything that simplifies them is a positive. At least accepting that winemakers need to use sulphur to make sound wine is a step in the right direction.” However, regulations aside, he says that organic wine sales continue to grow steadily. “Our problem is getting

enough grapes to supply the demand. Right now we have a number of international orders for organic red wine that are waiting to be filled.” Organic beers Wine is not the only organic alcohol beverage being produced in the country, as the new wave of artisan beers and ales has attracted its own select group of organic operators. While to date none of the industrial brewers on the scale of DB, Lion or Independent have yet considered branching out into the organics sector, there is a steady trade for those who have. Beer drinkers, like winemakers, do have a very smart selection of organic products to choose from, suggesting that organics attracts producers with a quality bent to the idea of sustainable beverages. The earliest (and consistently amongst the best) of these is Dunedin craft brewer Emmersons, whose organic Pilsener has been a multiple winner in international competitions, and remains one of the finest of New Zealand’s traditional lager styles. Also making a tremendous contribution to organics quality is Otago-based The Green Man, with a range of organic beers. Nelson’s Founder Brewery, one of the originals of modern craft brewing, also continues with its organic traditions and high brewing standards. In total there are five New Zealand brewers making organic certified beers; not quite the range offered by winemakers, but enough to keep the growing number of organics enthusiasts relatively contented. Beer and wine are not all there is to

drinkable organics in New Zealand, although the lack of a credible organic cider producer does point to the relatively unsophisticated nature of this country’s cider industry, in my opinion. It’s either that or it’s the total domination by those industrial producers who have also failed to deliver organics in the beer sector. However, in keeping with the organics traditions of craft production and high quality, there is a distillery making a mark with its organic spirits. In the Bay of Plenty, Distillery Deinlein produces a superb range of Eau de Vie that includes some with organic classification. These pure fruit spirits have gained an international profile, in part because of their high quality, and in part because of the amazing intensity of New Zealand-grown fruit oils that give them their essential aromatics and flavours. So for those traditionalist gourmets who drink progressively with dinner, organics now provides a lager to start, many types of wine throughout your meal, and a final burst of Eau de Vie to finish. It couldn’t get much better. l Keith Stewart is writer at large for Mediaweb’s food group and foodnews editor.

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Old fashioned beer delivery marks DB Draught milestone Beer was delivered the good old fashioned way across Timaru on the 16th February – by horse and cart. A team of DB Draught Clydesdales pulled a wagonload of DB Draught across town from DB’s Mainland Brewery in Washdyke to the Richard Pearse Tavern in the city centre. The six kilometre trek was thirsty work for the horses but extremely refreshing for the locals, who turned up to enjoy a complimentary glass of DB Draught at the pub, redeemed through a voucher in the paper. The celebration was in aid of 35 years of brewing in Timaru for DB Draught. Up until 1977 DB Draught had not left the watchful eye of sister brewery Waitemata in Auckland, where it had been brewed since 1930. But growing demand for the beer in the South Island led to a shift down country. DB Draught was instantly adopted by South Islanders as their own, especially during the 80s when the DB Draught Clydesdales graced TV screens in a long-running and hugely popular advertising campaign. Today it remains the number one selling DB beer in the South Island. DB Draught brand manager Hamish Yates led the celebrations, and says: “There’s always been a really powerful synergy between the DB Draught Clydesdales and our drinkers and it’s great to see that connection is as strong as ever.”

Yates says the celebration coincided with the revealing of a revamped look for DB Draught, with the horses a more dominant feature in its packaging. “The horses represent strength, determination and hard work, traits South Islanders are renowned for. It’s an honour to be able to enhance their alignment with DB Draught and give the beer a look and feel that fits its 80-plus year history.” Also included in the celebration was the revealing of new signage for the Mainland Brewery, which is now to be known locally as DB Draught Brewery. l

Woody to race in new motorsport series The all new V8SuperTourer series is set to get off to a cracking start with the announcement that Woodstock, New Zealand’s number one bourbon and cola brand, has signed on as the title sponsor of Andy Booth’s number 23 Holden at the new high quality event kicking off in February. Two times New Zealand V8 champion and former New Zealand Grand Prix winner Andy Booth will be behind the wheel of the new Team Woodstock Racing car, at the series featuring some of the fastest V8s ever raced at tracks across the country.

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Andy Booth of Team Woodstock Racing says: “The V8SuperTourer series is the most exciting event in the 20 plus years I have been involved in motorsport, and the Woodstock brand adds another level of credibility to the new series; we are excited to have one of New Zealand’s most iconic brands on board.” Tim Beck, Woodstock marketing manager, says the brand is proud to be the title sponsor of Andy Booth’s team in what is to be an exciting series. “Many people who enjoy cracking a Woody are into V8s and motorsports, so this opportunity seemed a very good fit. We are delighted to be teaming up with Andy, and we are looking forward to the new series kicking off, and the action at tracks all round the country. Woodstock has had a long association with motorsport in New Zealand. The Woodstock brand will feature on the car, driver, transporter, signage, website and merchandise.” The V8SuperTourer series kicks off the first round at Hampton Downs in North Waikato. There are a further six rounds scheduled to take place throughout the year, with the series wrapping up in October. l

Top wines for

Easter BWS finds the pick of the bunch for a festive occasion.

After 13 generations of making Champagne, Daniel Le Brun’s family name is synonymous with the production of fine, sparkling wines. At his company, No.1 Family Estate, Daniel Le Brun uses only specialised equipment imported from Champagne to continue the ritual of hand-crafting superb Methode Traditionelle. Established in 1999 in Marlborough’s beautiful Wairau Valley, Daniel focuses on six very special wines; the rich and creamy Cuvée No 1, a non-vintage blanc de blancs made from 100% Chardonnay, Cuvée Number 8, a non-vintage blend of Chardonnay and Pinot Noir, No 1 Rosé, a delicate rosé made from 100% Pinot Noir, Reserve Cuvée No 10, Cuvée Virginie – named after their daughter – and Cuvée Remy – named after their son – the latter three all limited edition wines and only made in the finest of years. With numerous awards and trophies for his wines over the 30 years since coming to Marlborough, Daniel continues to achieve the utmost in quality, year in, year out. No. 1 Family Estate is exactly as the name suggests – a family business comprising Daniel and his wife Adele together with their daughter, Virginie and son, Remy. A labour of love, the Le Brun family excel at their passion for producing some of the best sparkling wines in New Zealand. Pol Roger Pol Roger is one of the few remaining great family-owned Champagne Houses and a personal favourite of Sir Winston Churchill. Epernay is the heart of Champagne and at the heart of Epernay is Pol Roger, with its cellars running under the Avenue de Champagne. Pol Roger Champagne has a soul, created by the union of a family’s spirit and the character of a vineyard. The purity and nobility of Pol Roger Champagne is also the fruit of the knowhow, passed down from generation to generation. From the harvest in the region’s best vineyards to the painstaking work in the cellar, each step has importance.

The firm has an unwavering dedication to two essential values: excellence and independence. Excellence means the rigorous selection of vine growers and the strict selection of the grapes. It also means that the family in complete independence chooses the blends which give birth to the wines. Excellence and independence are closely linked. One guarantees the continuing existence of the other. All of this is revealed in the ability to reproduce each year a blend which is consistent in style and in quality, to compose that subtle bouquet of aromas, that unique mix of complexity and balance, of freshness and distinction which is at the origin of Pol Roger. Piper Heidsieck The Piper Heidsieck brand is internationally renowned and rewarded with countless medals, with a long history and a touch of glamour and elegance since 1785. The winemakers and their team have received the coveted “Winemaker of the Year” distinction from the International Wine Challenge on 11 occasions. The wines of Piper Heidsieck are radiant and crisp. Regis Camus, Piper Heidsieck’s winemaker, has raised the wines of Piper-Heidsieck to a new level of excellence, led by

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a strong belief in consistency of quality. Regis has chosen to use a majority of carefully selected Pinot Noir, to bring crispness and radiance to the range of medal and trophy winning wines. The Piper style has freshness, vivacity and fruit. The Piper Heidsieck wines have charm and drive but also structure and precision. Over the last 220 years the spirit of the House has evolved without really changing. The wines are easy to approach and offer sophisticated simplicity. Henkell Trocken Founded in 1856, Henkell Trocken is an absolute exception in the German and international markets for sparkling wine. For over 150 years, the brand Henkell has stood for the cultured enjoyment of dry sparkling wine. Henkell Trocken combines sparkling wine competence, elegance and class like no other in an independent and inimitable way, making it the ideal sparkling wine for stylish celebrations. Henkell Trocken is a top-quality brand presenting itself on the market with verve. Thanks to the superior quality of the Henkell Trocken brand, you have the assurance of experiencing the same, perfect taste every time. The taste is fresh, lively, with a subtle fragrant suggestion of tropical fruit on the bouquet. Henkell can also be enjoyed on ice, or in delightfully tasty cocktails. The finely blended, harmonious composition makes Henkell Trocken a well balanced taste experience. Henkell is enjoyed in over 70 countries across the globe, making it the largest exported sparkling wine from Germany and the epitome of sophisticated German sparkling wine culture. Freixenet Freixenet (pronounced Fresh - a - net) was founded by Pedro Ferrer in 1889 and is the largest producer of

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sparkling wine in the world. At the same time Freixenet are the leaders in the field of Cava production. Cava is the Latin name for cave and this is where the sparkling wines from Freixenet mature. There are over 150 million bottles of Freixenet maturing in 20km of Limestone caves in Penedes near Barcelona in Spain. High quality, but much less expensive than Champagne, Freixenet is produced in the same painstaking manner. Just like French Champagne all the grapes are handpicked and gently pressed to produce a high quality, delicious sparkling wine. Over more than 30 years Freixenet has undergone a remarkable international expansion, due in part to the great success of its best selling label, Cordon Negro, which was launched in 1974 and is packaged in a specially ground, distinctive black bottle. Mission Estate Mission Estate Winery is the birthplace of New Zealand wine. “Established in 1851 by pioneering French missionaries, we have been crafting wine for 160 years,” says brand manager Vanessa McMahon. As one of New Zealand’s most experienced winemakers, Paul Mooney has been at Mission for over 30 years. Mooney’s winemaking philosophies are heavily influenced by his mentor, Brother John, who trained in Bordeaux during the 1960s. The winemaking approach at Mission is a blend of traditional old world practice with the latest in research and technology. The focus is on developing elegant, food friendly wines of superior structure and texture. Precision viticultural techniques are implemented on all Mission vineyards, with canopy sensors and GPS technology used to identify quality zones for specific wine styles. Attention to detail is seen as the difference between making good wine and making great wine. Mission is ISO14001 accredited and has been

Mission Estate.

benchmarked as one of the most energyefficient wineries in New Zealand. The winery is also a major tourist destination. Nestled in the Taradale Hills, visitors can enjoy sweeping views of Napier city and the coast beyond. The cellar door encourages visitors to taste the extensive range of wines or take a tour of the historic complex and the fine dining Mission Restaurant has a reputation as one of New Zealand’s best. Soljans Estate Few NZ wineries can claim to have a prouder winemaking heritage than Soljans Estate Wines. The Soljans family name has been synonymous with winemaking in New Zealand since 1937 and this year marks the company’s 75th anniversary. In 2002 Soljans Estate moved from Lincoln Road to the present site in Kumeu. Today, Soljans is a stunning establishment on State Highway 16 and is the proud gateway to Kumeu Wine Country – Auckland’s heritage wine trail. Amongst other community events each Easter long-weekend Soljans hosts Berba the traditional Croatian Harvest Festival. In 2011 Soljans was awarded the mid-size business category of the Westpac Auckland West Business Awards. In declaring Soljans Estate Winery and Café the winner the judges commended Soljans management team, the attractive appearance of the venue and the diversification of the services offered. The quality of Soljans cafe was also recognised in 2011 when Soljans in Kumeu was chosen as one of the 20 best winery restaurants in the world by the Canadian Wine Access magazine. Each restaurant had to offer not just

Freixenet underground.

outstanding wines, but also wonderful meals, service and ambience – the sort of place you’d go back to again and again. Soljans range of award-winning wines including the outstanding and well recognised Fusion Sparkling Muscat can be found in select wineshops and restaurants and of course at the spacious cellar door. l march 2012 FMCG

Top wines for Easter Henkell Trocken Henkell Trocken combines sparkling wine expertise with elegance and vigour, making it the ideal sparkling wine for all occasions. A fine bouquet of fruity notes and citrus characters makes Henkell Trocken invitingly light. The palate is fresh and lively, with subtle tropical fruit nuances, and a lingering finish. RRP $17.99 Hancocks Wine, Spirit & Beer Merchants Phone: 0800 699 463 prue@hancocks.co.nz www.hancocks.co.nz

Piper Heidsieck Cuvee Brut The nose is reminiscent of a bright, fresh morning during early Spring. Notes of citrus fruits, Granny Smith apple and subtle hints of warm toastiness follow spring blossoms such as hawthorn. The palate is fresh and lively, with more mature notes of pineapple, nutmeg, white pepper and oriental zest. RRP $74.99 Hancocks Wine, Spirit & Beer Merchants Phone: 0800 699 463 prue@hancocks.co.nz www.hancocks.co.nz

Pol Roger Brut Reserve NV The blending of their most popular cuvee is a source of particular pride. This elegant Champagne from Epernay has a lovely floral bouquet, refreshing fruit flavours and an exquisite mousse of tiny bubbles. The refined body is light with good backbone. A popular, versatile style of Champagne for all occasions. RRP $89.99 Hancocks Wine, Spirit & Beer Merchants Phone: 0800 699 463 prue@hancocks.co.nz www.hancocks.co.nz

Freixenet Cordon Negro Brut Fine, delicate aromas, combining tones of green apple and pear. Light nuances of Mediterranean fruits â&#x20AC;&#x201C; peach, melon and pineapple, over a base of citrus, all beautifully balanced by light toasty aromas from bottle maturation. The palate is refreshing, balancing the citrus fruits. It is light, long and elegant. RRP $19.99 Hancocks Wine, Spirit & Beer Merchants Phone: 0800 699 463 prue@hancocks.co.nz www.hancocks.co.nz

BWS march 2012

spar kli ng wi n es Soljans Fusion Sparkling Muscat Fusion is New Zealand’s closest lookalike to that famous, immensely gulpable, grapeysweet Italian bubbly, Asti Spumante. Made from Gisborne Muscat grapes, it’s a deliciously light, low-alcohol wine, crisp and lively, with fresh, intense flavours, lemony, appley, zesty and vivacious. RRP $15.95 Soljans Estate Phone: 09 412 5858 sales@soljans.co.nz www.soljans.co.nz

Cuvee No 1 A perfect balance between fruit and yeast, this 100% chardonnay (blanc de blancs) wine was held on lees for two years allowing a full autolysis displaying a tiny consistent bead, and firm mousse resulting in typical, complex, champagne-like character. The palate is intensely flavoured and focused with the good fruit-yeast balance providing elegance and style. RRP $35.00 No 1 Family Estate Phone: 03 572 9876 marketing@no1wine.co.nz www.no1familyestate.co.nz

Te Hana Reserve As sophisticated and inspirational as the women it’s been created for, Te Hana is out of this world yet distinctly, uniquely New Zealand – a contemporary sparkling range that radiates natural style. Every glass of Te Hana is made from New Zealand grapes that ripen and intensify deliciously in our famous Kiwi sunlight – the essence of New Zealand in every bottle. RRP $18.99 Lion Nathan Phone: 0800 107 272 www.lionnanthan.co.nz

Lindauer Special Reserve Award winning Lindauer Special Reserve Blanc de Blancs is pale strawgold with a delicate aroma of broken biscuit intermingled with lemon sorbet. Lindauer Special Reserve can be served as an aperitif on its own but is fabulous with fresh seafood, in particular shellfish – especially oysters. RRP $19.99 Lion Nathan Phone: 0800 107 272 www.lionnathan.co.nz

Mission Fête Mission Fête is a hand harvested cuvée, crafted to celebrate 160 years of winemaking. An elegant wine with a full nose of stonefruits harmoniously interwoven with subtle toasty elements. The palate shows creaminess with delicate pear characters and a fine mousse. RRP $23.00 Mission Estate Winery Phone: 06 845 9350 info@missionestate.co.nz www.missionestate.co.nz

Lindauer Classic Range For over 30 years, Lindauer has helped to bring a touch of carefree sparkle to every occasion. An affordable, awardwinning sparkling wine, Lindauer’s consistent high quality has made it the perfect tipple for Kiwis to enjoy at any time. Lindauer Brut NV, Lindauer Rosé and Lindauer Sauvignon Blanc form part of the Lindauer Classic range. RRP $12.99 Lion Nathan Phone: 0800 107 272 www.lionnathan.co.nz march 2012 BWS

food. IT’S MY BUSINESS.

Register now for the most important trade-only event for your business, Fine Food New Zealand. It’s the only comprehensive, international exhibition for the foodservice, hospitality and retail industries in this country, showcasing the latest in food, drink and equipment from leading producers.

This major event only happens every two years so don’t delay: register now for FREE entry at www.finefoodnz.co.nz and enter code FM1 Exhibitor enquiries to gail@finefoodnz.co.nz. In association with: Strictly trade only. Entry is restricted to members of the retail, foodservice and hospitality industry. Proof of business identification may be required. Persons not in these categories, including children, will not be admitted at any time. No prams permitted.

17-19 JUNE 2012 ASB SHOWGROUNDS GREENLANE, AUCKLAND NZ www.finefoodnz.co.nz

DIARY MARCH

10-12

BAKERY CHINA

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

www.bakery-china.de

www.jma.or.jp/foodex/en/

11-13

THE FOOD SHOW

Westpac Stadium, Wellington

8-10

PRIVATE LABEL & FMCG 2012

www.foodshow.co.nz

CNR Expo Centre Istanbul, Turkey

19-20

GLUTEN FREE FOOD SHOW

www.cnrprivatelabel.com/

Brisbane Convention & Exhibition Centre South Brisbane, Queensland

NARGON SUPPLIER AWARDS

www.eventseye.com CLEAN NZ

4-6

PROWEIN

Düsseldorf, Germany

www.prowein.de

6-9

FOODEX JAPAN

Makuhari Messe, Tokyo, Japan

Amora Hotel, Wellington

www.nargon.co.nz

24-25

Ellerslie Convention Centre, Auckland

27-30

ANUGA FOODTEC

www.cleannz.co.nz

International trade fair for food and drink technology Cologne, Germany

24-26

BIOFACH CHINA

www.anugafoodtec.com

International Organic Trade Fair Shanghai, China

28-29

WORLD RETAIL CONGRESS ASIA PACIFIC 2012

www.biofach-china.com

Beijing, China

www.worldretailcongressasia.com

JUNE 17-19

APRIL 7-9

CHINA INTERNATIONAL GREEN FOOD & ORGANIC FOOD EXHIBITION

Beijing, China

www.ciec-expo.com

Shanghai, China

www.sialchina.com

9-11

Montreal, Canada

www.sialcanada.com

FOODSTUFFS NATIONAL GROCERY EXPO

Claudelands, Hamilton

www.foodstuffs.co.nz

SEPTEMBER 25-27

SIAL CANADA

www.finefoodnz.co.nz

29-30

SIAL CHINA

ASB Showgrounds, Auckland

AUGUST

MAY 9-11

FINE FOOD NEW ZEALAND

FOODTECH PACKTECH

ASB Showgrounds, Auckland

www.foodtechpacktech.co.nz

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

Increase your sales this Easter with Cinderella Dried Fruit Units per Store per Week

Dollar Ranking in Dried Fruit TKA

Dollar Growth on YA%

Cinderella 400g Sultanas

32%

Cinderella 400g Camel Dates

21%

Cinderella 400g Raisins

19%

Cinderella 150g Cranberries

28% Source: Aztec, TKA, MAT 22/01/12

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.

To find out more visit the freight hub at

KIR 9634