incorporating
9 421902 251016
DecEMber 2010 Volume 16 No 11 $9.15
THE BUSINESS OF MANUFACTURING • LOGISTICS • SUPERMARKETING
fmcg . co . n z
•
foo d ne w s . co . n z
HELLERS PACKS A PUNCH Great new branding Great new-look packs Food appeal photography Great shelf presence Todd Heller’s personal comments and signature Conveys quality Wide range of products
As sure as Hellers
HTR_ING_10162
f proo k a Le ing kag c a p
Brilliant seasonal ranging With Christmas around
the corner Ingham’s distinctive fresh and frozen range of whole chickens are the logical choice. Easy to range, easy to handle and easy for your customers to choose.
your customers will Love ‘em. For more information on Ingham fresh and frozen products please call Ingham sales department on 0508 800 785.
14 The 2010 Great
New Zealand Sausage Competition
contents
Features
dec E M ber 2 0 1 0
16
6 Editor’s note 8 Industry news 22 What’s hot
16 World Dairy
Summit 2010 Focus on sustainability
28 Company profiles 46 FGC Conference New Media: New Ways
58
Category checks 24 Snacks 50 Gift cards
Regulars 12
Fresh and local In season
13 Beef&Lamb Looking forward to a new year
18 FGC
14
Beware the sledgehammer
OUR COVER The Hellers brand and range of products had a revamp with a new logo and packaging.
contents
19 GS1 Learn from the net
dec E M ber 2 0 1 0
20 Nargon Forget the numbers – focus on people
40 Grocery business
Keeping you up to date with packaging, IT, supply chain and logistics
64 Snap Spotted out and about
65 Diary Your guide to upcoming industry events
52 Feature Convenience Leaders Summit
54 Nargon 2010: A trying year
46
55 Industry news 57 Directory 45
58 Feature Bubble battles
60 Q&A Adele Le Brun
61 Industry news
62
416709 000547
FAMILY PACK
FRESH SLIced
Meadow Mushrooms Ltd. Springs Road, Prebbleton, Canterbury, New Zealand.
Refrigerate, and cook before use. Net Weight when packed 350gm
9
FRESH SLIced
FAMILY PACK
50mm
90.25mm
Refrigerate, and cook before use. Net Weight when packed 350gm
100%
Registered
Matt
100%
Registered
Date:
Label Size: 50 x 90.25mm
Laminated
2nd Proof
cyan
magenta
yellow
black
pms
pms
THIS WAY
pms
dieline
1 3
2 4
5
6
7
THIS WAY
Core Size: 76mm Qty per roll: 5000
Description:
THIS WAY
24-09-10
THIS WAY
THIS WAY
Overgloss
THIS WAY
Code: MM_Sliced350
416709 000547
THIS WAY
Client: Meadow Mushrooms
9
THIS WAY
Meadow Mushrooms Ltd. Springs Road, Prebbleton, Canterbury, New Zealand.
8
IMPORTANT Please check this proof for spelling errors and layout. Mark alterations clearly, if alterations are required please do not sign until corrections are completed. This specification is for a layout and visual guide only and does not necessarily indicate final print. All colours are matched to designated PMS colours or CMYK colours as per customer specifications. Clients signature is authority to proceed with order as per proof guide. Please return to GEON. Po Box 19707 Christchurch. Fax 03 384 2905. email christchurch.art@geongroup.com GEON Signature verifies that the product you require matches the sample provided.
Client Sign-off:
GEON Sign-off: Date:
e ditor ’s note Vol 16
No 11
december 2010
issn 1175-8279
Incorporating
Serving the business of manufacturing, logistics and supermarketing
tamara rubanowski – editor editor@fmcg.co.nz
Ashley Kramer – SENIOR account manager Mob: 021 232 9401 admanager@fmcg.co.nz
peter corcoran – account manager Mob: 021 272 7227 peterc@mediaweb.co.nz
Production Manager Fran Marshall (09-832 0024) franm@mediaweb.co.nz
Design Cherie Tagaloa
Subscriptions subs@mediaweb.co.nz 09-845 5114 $90.00 a year (incl GST) for 11 issues Australia $150.00 Rest of the world $190.00
Printing & Pre-press Benefitz
Publisher Used on a white background
Mediaweb Limited PO Box 5544 Wellesley Street, Auckland 1141 Used on a black background Phone 09-845 5114 Fax 09-845 5116 www.mediaweb.co.nz The opinions and material published in FMCG are not necessarily those of the publisher except where specifically stated. © 2010 Mediaweb Limited.
Are you ready…? Are you ready for the festive season and summer holidays? It seems many families all over the world appreciate the simple things around this time of the year. According to a recent US survey*, 70% of Americans indicate that food brings their families the most joy during the holidays, followed by baking and decorating (both at 49%); gifts (48%) and shopping (32%). Given their love of food, more than 40% of Americans also say their families “will probably overeat as usual at holiday time”, with 22% “saving room” for the main holiday meal by eating less at other meals. Food fulfils not only a physical need, it also serves to honour our traditions and brings family and friends together. Planning for a festive meal is a big part of the process, and during the rush of the holidays, other meals must be quick and easy. To address these needs, our stores must be focused on providing shoppers with simple, affordable meal solutions, tasty tips and useful ideas throughout the season. Shoppers may be time poor, but they still want to be “delighted” while browsing, investigating and making a purchase. Is your team well prepared for this
challenge and will you have sufficient staff to carry you through your busy days? “Great people are the key to our success,” said George Sutherland, Foodstuffs Wellington’s general manager retail services, at the cooperative’s annual training awards ceremony recently. The training awards are designed to acknowledge the achievements of employees and their potential as future industry leaders (see page 44 in this issue and www.fmcg.co.nz for extended coverage). This issue also brings you expert tips for staff and stock levels, cash flow and taxes in our C-store section; profiles some outstanding companies on pages 28-36, and examines the latest trends in sparkling wines, gift cards and the snacks category. If you have a new product launch, industry story, or photos from a recent event to share, please email: editor@fmcg.co.nz. I look forward to hearing from you. Our team is certainly ready for summer, but we will be back soon to bring you the latest industry news in the next issue of FMCG, out in February 2011. Best wishes for a very happy and prosperous New Year from all of us at FMCG!
ISSN: 1175-8279 (Print), 1179-8718 (Online).
Tamara Rubanowski, Editor Official b2b magazine for the Gluten Free Food & Allergy Shows. Media sponsor: Pride in Print Awards.
* SUPERVALU Holiday Survey, November 2010.
@
• Up to date • Relevant • Topical Stay in the loop by subscribing to our free twice-weekly email newsletter at www.foodnews.co.nz/subscribe or go to www.fmcg.co.nz for features, news, category checks and blogs at your fingertips 24/7/365.
What’s online
www.fmcg.co.nz FMCG has a few web exclusive features to get you clicking.
Contact Ashley Kramer at admanager@fmcg.co.nz or Peter Corcoran at peterc@mediaweb.co.nz to find out about our print and online packages. To discuss editorial submissions contact Pauline Herbst at editor@fmcg.co.nz.
AWARD-WINNING SAUSSIES
Todd Heller’s venison sausages were awarded a Gold Medal at the 2010 Great New Zealand Sausage Competition. For a comprehensive list of all Gold, Silver and Bronze Medal winners visit www.fmcg.co.nz
NEW COUNTDOWN STORES
Countdown’s owner Progressive Enterprises Ltd is currently rolling out a nationwide programme of building new and refurbished stores. Check our website for the latest information about two of the new Countdown stores, which opened in early December in Hornby and Te Awamutu.
NEW PRODUCTS
From new sodas to boxed goat’s milk soap – take a sneak peek at some of the latest product launches online.
FOODSTUFFS WELLINGTON ANNUAL TRAINING AWARDS The achievements of employees and their potential as future industry leaders were celebrated at the Foodstuffs Wellington annual training awards ceremony in Wellington on Saturday 20 November. We bring you a comprehensive list of the award winners online.
PL US
An extensive archive of previous issues of FMCG you may have missed as well as news, category reports and more.
news Sweet taste of success for New Zealand’s best workplace Mars New Zealand was named the overall winner at the JRA Best Workplaces Awards for 2010. The company came out on top of the 245 organisations from around the country across a range of sectors which entered this year’s JRA Best Workplaces Survey for the coveted title of New Zealand’s Best Workplace. The survey is New Zealand’s largest annual workplace climate-employee engagement The Mars team on stage after winning Mars managing director Gerry Lynch survey and uses confidential feedback from (with MP Kate Wilkinson in the background). the big award. organisations’ employees to rate their employers. Almost 31,000 employees from 245 organisations across the Several other awards for outstanding workplace achievements country took part in the JRA Best Workplaces Survey between were presented at the awards ceremony at the Langham Hotel June and August this year, up from last year’s 216. in Auckland in November. The 2010 finalists come in a range of shapes and sizes from the This is the first time Mars has scooped the grand prize, although small team of just 22 employees at Gopher business directory, it has come close in previous years, winning the medium-large to the 866-strong team at Warehouse Stationery. workplace category in 2008 and coming third in its category in This year’s finalists’ employees responded to 60 questions, 2007 and 2009. grouped into categories such as culture and values, learning and As the local arm of Mars International, Mars New Zealand is development, reward and recognition, communication known for its well-loved confectionery brands such as M&Ms, Snickers and Starburst, and also has a Petcare manufacturing site and cooperation. JRA managing director John Robertson says it is encouraging to in Wanganui which supplies New Zealand and Australia. see a large number of organisations still entering the survey, and Guest speaker, Hon Kate Wilkinson, Minister of Labour, the high level of staff satisfaction, despite difficult economic presented the Overall Winner Award to Mars New Zealand and conditions for some. says a key component in the success of a business is its people. “New Zealand organisations are really recognising the link “If you have good people and you treat them well, they enjoy between a positive workplace climate and the performance of their work and take pride in the success of the business.” their organisation,” he says. She says the Awards encourage employers to think about “And let’s face it, what organisation wasn’t looking for these and implement practical initiatives to improve their outcomes during the past two or three years?” l workplace productivity.
AFGC appoints new chairman The board of the Australian Food and Grocery Council (AFGC) has announced the election of John Doumani as the new chair of AFGC, the united voice of Australia’s A$102 billion food and grocery manufacturing sector. Doumani is managing director of Fonterra Australia/New Zealand and takes up the position following the retirement of former chairman Geoff Starr, who served on AFGC’s board for nearly five years. Doumani said “Australia’s food and grocery sector is the country’s largest manufacturing sector. Maintaining our competitiveness and our ongoing commitment to being a good, active, corporate citizen will be pivotal to ensuring ongoing profitable growth.” AFGC chief executive Kate Carnell said: “With the serious
8
FMCG decEMber 2010
challenges facing the food and grocery manufacturing industry, including rising imports, flat exports, increasing costs, and pressure on margins, it was vital to have a leader of Doumani’s calibre. “It’s great to have someone with so much knowledge and vitality who will help industry take up these important challenges and to work with government to develop a national food and grocery agenda,” Carnell said. “For the past four years, John has been an active AFGC board member. With more than 30 years’ experience in international business and consumer brands with leading companies including Campbell Soup Company, Johnson & Johnson, Meadow Lea and most recently Fonterra, he will be a great leader for AFGC.” l
n ews New Milkybar kid a world first The search is finally over! One of New Zealand’s most wellknown young characters – the Milkybar Kid - will be Hinetaapora Short, aged 8, from Rotorua. Hinetaapora will be carrying on the Kiwi tradition of revolutionary women and female-firsts: never before in the world has the Milkybar Kid been a girl, making this an extra-special achievement for the youngster and an exciting moment for Nestlé. Hinetaapora attends Maori school Te Kura O Tekoutu and is bilingual – Maori is her first language. Her favourite subjects at school are Spanish and singing, and when she grows up she’d like to be famous, or a model. She says she would like to be the next Milkybar Kid because it sounds fun, she’d like to be famous and she really likes Milkybars. “Hinetaapora was a hit with the judges and New Zealand public alike,” says Milkybar spokesman Jeremy Boucher. “We opened up this search to all New Zealanders, and it is exciting to have
found a winner who not only has the special qualities to come through this audition process but who also embodies New Zealand in the 21st century.” Since August 2010, parents and guardians have been filming audition videos of their children and uploading the footage for their chance to fill the iconic boots of this much-loved character. Public auditions were also held nationwide before over 1500 entries were whittled down to a list of top 10, which featured six girls and four boys from all over the country. A panel of judges picked Hinetaapora as the ultimate winner. Says Jeremy Boucher: “Our congratulations go to the top 10 and of course to our winner who will go on to star as the next Milkybar Kid.” Hinetaapora will star in the new Milkybar television commercial in early 2011, continuing one of New Zealand’s most iconic television campaigns. l
Premium vinegars made in New Zealand with world-class taste New Zealand produces some of the best grapes and wines found anywhere, perfect for great vinegar. Which begs the question – why are most balsamic and wine vinegars imported from Italy? Christchurch-based company TasteMaker set out to create a range of proudly Kiwi-made vinegars that would rival imports in taste and price, without a hefty carbon footprint. The result? A selection of vinegars slowly matured to perfection using traditional methods. “We love vinegar and we want to create the best local product we possibly can,” says TasteMaker founder Gina Clarke. “We carefully choose the best ingredients available – when we source the best, and add the love, the results are fantastic. “We’re also committed to traditional manufacturing methods to extract the best taste. For example, our raspberry and fig balsamics aren’t just flavoured with fruit at the end of the
manufacturing process; instead fruit is at the heart of the product. And because we make our vinegar locally, we keep costs down, which means a better product at a better price.” Rounding out the range is TasteMaker’s ma¯nuka honey & cider vinegar – made entirely from cold pressed New Zealand apples and ma¯nuka honey – and a traditional English dark malt vinegar, perfect for fish ’n’ chips. All TasteMaker products are made in the South Island with no artificial flavours or colours. Suitable for vegetarians and vegans, the range is free from gluten, lactose, nuts and eggs, and now available nationwide. l decEMber 2010 FMCG
9
news New study to improve food safety for fresh produce The New Zealand Food Safety Authority (NZFSA) is conducting a new study into how water and natural fertilisers – such as manures, biosolids and compost – are used by the horticultural industry. NZFSA specialist advisor Marion Castle says the study will help growers continue to produce safe fruits and vegetables and avoid problems that have hit the fresh produce industry overseas. The study will also look at how contaminants from these sources that might be introduced to fresh produce are currently controlled. Internationally, outbreaks of foodborne illness have resulted from contaminated irrigation water, contaminated water used to wash fresh produce, improperly treated manures, animals defecating on fresh produce, and poor personal hygiene practices. NZFSA’s new study will look at organic and conventionally grown fresh produce. It will focus on fresh produce intended to be consumed raw, or as a raw dried or semi-dried product. “Cooking at high enough temperatures for long enough to kill pathogens will prevent most foodborne illness. Not all fresh produce is cooked before use and can be used in salads or eaten as cut-up fruit. Any pathogens that are present at high numbers could make people sick,” Castle says. Fresh produce-related food-safety issues are rare in New Zealand, but many high-profile foodborne illness outbreaks have been linked to fresh produce overseas. In the United States, for example, there have been outbreaks associated with contaminated products including spinach, raspberries and tomatoes. In 2009 NZFSA conducted a survey of illness-causing bacteria in fresh ready-to-eat fruit and vegetables at retail. The survey indicated a very low level of contamination in New Zealand produce, and pathogens were only detected in two of 900 samples. Both were salmonella-contaminated lettuces from the same grower. As part of this new study NZFSA will be talking with growers about their current practices.
“We are very interested in what growers do to manage risks, such as following good agricultural practices and using assurance programmes. This information will contribute to future risk profiles and guidance materials for growers and help them grow fresh produce that is as safe as it can be,” Castle says. Reported produce-related food safety outbreaks in New Zealand have included an outbreak of Hepatitis A associated with raw blueberries in 2002. In 2005 consumption of raw carrots was identified as the probable cause of an outbreak of Salmonella Saintpaul. The majority of New Zealand growers and processors have adopted Good Agricultural Practices and some produce companies have put food safety programmes in place for production and processing of fresh produce. l
The new look for Hellers Shaved Meats range The Hellers brand and range of products has had a revamp, as shown on our cover, and Hellers Shaved Meat Twin Packs are amongst the first to be rolled out. This major new brand refresh is loaded with charm, craft and the credibility of a local supplier of smallgoods carrying with it an assurance of quality in a friendly tone of voice. The packs carry a quote from Todd Heller as well as his signature, reflecting the personal involvement he has with development and production and reinforcing quality assurance from the man behind the superb range of Hellers products. Todd Heller has travelled the world
10
FMCG decEMber 2010
looking at new products and packaging innovations and is passionate about implementing improvements to keep Hellers at the forefront of smallgoods manufacturing in New Zealand. The new packaging brings an entirely fresh visual approach to all Hellers products with appealing food photography, coupled with a ‘butcher’s shop’ backdrop of wood panelling behind the hanging sign logo. Hellers is introducing its new look labels on its Shaved Meats Range with a blitz of advertising in leading magazines over January and February. l
n ews Government commits funds to contain Psa ripping up and burning infected plants, which some growers have said may be necessary to eradicate the bacteria. Both the Ministry of Agriculture and industry agreed aggressive containment was the best option for now, though eradication had not been ruled out. Zespri’s corporate and grower services director Carol Ward explained that the industry was working through a response plan. “We are seeing symptoms of a red ooze on these vines,” she said. On some orchards, the disease has progressed in a month from leaf spotting through to the collapse of the vines, with some of them bleeding a red liquid from cankers. “The only prudent approach is an aggressive strategy in the industry for managing Psa,” she said. “We have a pretty good chance of getting on top of it.” Ward said how the bacteria responded to New Zealand conditions was critical to the virulence and severity of the incursion – she suggested that variations between strains found in Italy, Japan and Korea were likely to be less important. None of those countries had been able to eradicate it. MAF has advised growers to stop using artificial pollination, saying it could be one way the disease had spread. * Pseudomonas syringae actinidiae l
NEED SOMEONE ON THE INSIDE? Talk to New World Direct. We have access to 2.3 million Fly Buys card holders, so we have the potential to see into the shopping baskets of over 70% of Kiwi households. A direct marketing campaign with us can help you win back lost customers and attract new ones, talk to your existing customers to keep them engaged, increase sales to your current customers and launch new products to the most relevant audience. Because people who use New World Direct get a measurable response and that’s valuable.
To get great results from your next campaign, head to newworlddirect.co.nz now.
decEMber 2010 FMCG
NDD 0123_D
The bacterial infection Psa* that is spreading through the nation’s kiwifruit industry has infected more than 60 orchards in various regions across New Zealand. At the end of November, a total of 485 orchards had been inspected by trained assessors, and 70 orchards were put on a restricted place notice. About 30% of the infected orchards grow green kiwifruit, and the rest are growing Zespri’s gold kiwifruit, a cultivar which has been vulnerable to the bacteria in Italy. Agriculture and Biosecurity Minister David Carter announced a proposal for containment of Psa, committing $25 million, subject to a dollar-for-dollar match from the kiwifruit industry. The overwhelming majority of growers voted in support of the proposal, giving the green light to an aggressive management plan to tackle the disease. Carter said $50 million will be immediately available to tackle the spread of Psa and minimise its impact on New Zealand’s $1.5 billion kiwifruit industry. He said that aggressive containment “will almost inevitably involve some removal of some of the worst-infected vines, and the destruction of that material so it doesn’t allow the spread of that bacteria”. The announcement is a major funding commitment by the Government and “recognises the compelling case put forward by the kiwifruit industry to ensure its future viability”, said Carter. The funding package will cover a range of actions, including limited grower compensation for income loss, management techniques and continued research into the disease. MAF will be involved in the governance of the programme and the response will be subject to ongoing review by technical experts. But the cutting out of some infected vines, controls on the movement of people and orchard equipment and spraying orchards with copper solutions to suppress bacteria, fall short of
11
FRESH AND LOCAL Specialist resource writer John Clarke highlights developments in produce, fish and meat supply. COMING ON
The soft fruits, raspberries blackberries and gooseberries, red and black currants. All the stone fruits: plums, cherries, nectarines, peaches and apricots. The first New Zealand melons and squash.
IN THEIR PRIME
Fresh scallops, cockles and pipis. Flounder, mullet, all the inshore fish really. All the game meats and of course lamb. Avocados. Beans, asparagus, globe artichokes, new potatoes, tomatoes – in fact all the summer vegetables and some decent garlic at last.
FALLING OFF
Brussels sprouts and leeks. Most of the citrus and kiwifruit. Pacific oysters.
SHOT TO BITS
Whitebait sadly. Brussels sprouts and yams. New Zealand pip fruit. The fresh seasons for orange roughy, hake and ling have ended. Fresh veal.
SEAFOOD This is the season for all those inshore species: flounder, snapper, gurnard, trevally, kahawai and mullet. MEAT Farmers are starting to worry a little about feed as we move into summer with many areas still requiring better rain. But supply all round is improving at least in the short term. Sheepmeat: Last year’s store and prime lambs are now nearly at an end and spring lambs are starting to be seen at saleyards, fetching strong prices – supply is tight and the trend is rising. Mutton schedules are trading at record levels on limited availability and still rising as supply constraints push prices up and up. Beef: The weak US dollar is affecting New Zealand beef sales and spring export and local trade schedules are falling – good eh? Cervena: Schedules are now easing, as the season changes from chilled to frozen and the
12
FMCG decEMber 2010
trend is falling. Pork: Look to those hams – ‘tis the season…! FRUIT Yes, we are coming into that bountiful fruity time of the year. Blackcurrants are in the market from now with full production over January and February. Citrus: We are coming to the end of most of our local citrus varieties. New Zealand tangelos, oranges and lemons will still be around but will peeter out next month. Mandarins and navelinas are now well over. Local limes are old stock; new crop will not be available until March. Berries: Fresh raspberries are about to hit us and will be finished by April. Look also to boysenberries until early February, blueberries through to mid March, with blackberries a little later. Loganberries are always around and the very short season for gooseberries is on now. Pomegranates are starting to appear this month in good supply as they ripen in the Northern Hemisphere autumn and we tend to see them through our summer months. Redcurrants are on the way, but for a very short time only – don’t you just love the seasons? This month is strawberry month, every one buys some strawberries in December, they just cannot help themselves. Stone fruit: The summer fruit season starts to hit its straps this month – that’s the marketing name for stone fruit guys. The cherry season kicks off in all seriousness this month just in time for Christmas. North Island plums, nectarines, apricots and peaches will all be coming into full production but prices over December are guaranteed to be firm. And be aware also that early season New Zealand grown stone fruit often has a poor shelf life. South Island fruit varieties tend to show up one month later in the season. VEGETABLES Artichokes (globe) are at the height of production. Asparagus this month is still in good nick and production is at its peak but will drop off from January.
Locally grown aubergines are back again in the markets, pricey but nice. Beans The New Zealand glasshouse season for the flatter varieties such as Mangere Pole has arrived and the outdoor round ‘French’ beans (mostly Gisborne grown) should reach the market finally. Broad beans are out there but supply will tighten up. Beetroot is most plentiful from November until April. Avoid roots with scaly areas around the top surface as they tend to be tougher. Originally the leaves were eaten more than the roots, but in New Zealand we just eat the roots, why? Capsicum prices are still very high but almost all the New Zealand grown varieties are arriving in better volumes and it will only get better as we move further into the summer. Corn You can get fresh early varieties of sweet corn in the market from January these days, but it will be expensive. Courgettes Our New Zealand zucchinis are back in the markets. Cucumber Plenty of Kiwi-grown telegraphs around. Garlic The first of the New Zealand grown garlic will arrive this month as will the first shallots. Leek quality is variable and will only get poorer over summer, but keep an eye out for those baby leeks as they come in shortly. Potatoes This is new potato time but watch for greening as these early spuds go off very quickly. The first (so-called) Maori potatoes will arrive from the far north this month. Taro Varieties of taro vary in colour and size. Taro is a starchy root crop and the leaves are also edible. Taro is not grown commercially in New Zealand; all supplies are imported from the Pacific Islands. Tomatoes New Zealand main crop is all on and they will get cheaper from now to the end of February. A little outdoor fruit will start showing up in January.
beef & la m b
Looking forward to a new year
Rod Slater, CEO, Beef + Lamb New Zealand.
By rod slater
As years go, 2010 has certainly seen its share of ups and downs in the meat industry, and will be remembered as a year when supply shortages and severe weather conditions collided to create one of our most challenging marketing environments yet. Lamb, in particular, has been in short supply as a result of strong export markets coupled with fewer lambs overall. Add to that mix a series of severe storms in the South Island, which killed off thousands of newborn lambs, and the shortage became acute, inevitably pushing prices up across the board. Beef supply has also been tight, but not as extreme as lamb, which has kept prices relatively stable. Because of these challenges, it’s been even more important to keep beef and lamb in front of consumers. So on the fun side, our new television commercial, shot in February on Richard and Diane Kidd’s property in Helensville, showed farmers as ‘caretakers of the land’. Featuring our ‘iron maidens’– Sarah Ulmer, Georgina Earl, Caroline Meyer and Sarah Walker – the commercial struck at the heart of environmental issues, such as sustainability and animal welfare, which are becoming more and more important in the public eye. The reality is our farmers lead the world in environmentally-friendly farming practices, so it’s been a pleasure taking this positive message out to New Zealand consumers. Overall trends for the year show consumers are caring more about how and where their food is farmed and produced and the country of origin. This desire to know more about food production is only going to intensify, so it’s important we continue to address these questions and concerns as we move into the future. Another highlight of this year’s programme has been adding Commonwealth gold medal cyclist, Alison Shanks, to our stable of ‘iron maidens’. And in the past few weeks, silver medallist in the 800 and
1500 metres, Nikki Hamblin, has also been added to the team; rounding out a great young team of women we are proud to have representing beef and lamb to our New Zealand consumers.
What’s in store for 2011?
Sarah Ulmer, Georgina Earl, Caroline Meyer and Sarah Walker front the beef+lamb TV campaign.
Lamb supply will continue to be tight, which will hopefully encourage retailers to develop value-added products for their customers. The issues of sustainability and animal welfare will continue to gain media attention, and consumers will demand more accountability from food producers. Another major prediction is the New Zealand team of butchers will defeat the Australian team in the inaugural ‘Butchery Test Match’ to be held in Christchurch in March. Go the Kiwis! In the meantime, I hope meat retailers will reap the rewards of beaches, baches and barbecues and all that this wonderful season brings. decEMber 2010 FMCG
13
Judges present the ‘supreme sausage’ (No.14). From left to right: Mike Van de Elzen, Head Chef, Molten, Kerry Tyack, Head Judge, Matt Grimes, Butchery Trainer, Lauraine Jacobs, President NZ Guild of Food Writers.
t o h g in
s e i s s u sa l z z Si ta
e r p u ke s
FMCG editor Tamara Rubanowski joined the judging panel at the 2010 Great New Zealand Sausage Competition.
14
FMCG decEMber 2010
M
r a w a e m
ystery shoppers were out in force in November collecting entries for the 2010 Great New Zealand Sausage Competition. Record entries set the scene for a tough competition as 450 different types of sausages battled it out for supremacy. Retail Meat New Zealand manager Fiona Greig said the competition is an industry highlight. “It’s been running since 1994 and has grown from strength to strength. Butchers spend a long time perfecting
d
their sausage recipe, and to win the coveted Supreme Award holds a lot of kudos in the industry,” says Greig. Butchers entered their sausages into 12 categories ranging from Traditional to Gourmet, aiming for the number one gold medal in their category to put them forward to the Supreme Award judging. The 12 entries that make it to the Supreme Award were also eligible for the inaugural People’s Choice Award. The competition was organised by Retail Meat New Zealand and
featu re Category finalists
Head judge Kerry Tyack. Todd Heller with his Gold Medal-winning venison sausages. Hellers sausages received several Gold, Silver and Bronze medals at the competition.
Rod Slater, CEO beef+lamb New Zealand, at the competition.
sponsored by Devro, Kerry Ingredients and Alto Packaging. Judging took place in Auckland from 17-19 November. The panel of judges included food writers and industry experts who were seated at a table of four, marking each entry in pairs and following strict guidelines. Judging partners changed with each entry. Each sausage was anonymously coded. The sausages were first presented in their uncooked state, then the cooked version of the same entry was examined for aroma, flavour, texture and visual appeal. The judges started with a perfect score of 100, then subtracted marks for faults such as inconsistencies in presentation, or aftertaste. Head judge Kerry Tyack ensured that a high standard of assessment was maintained. Judges were not permitted tea or coffee during judging and given water or fruit juice inbetween tastings to ensure their palate remained clean and fresh. All entrants received feedback after the competition, based on the judges’ comments.
In the end, a pork and fennel gourmet sausage came out top of the 2010 Great New Zealand Sausage Competition, with Mediterranean Wholesale Market in Wanaka named Supreme Award winner. Owner of the gourmet food store, Brendon Wilson, said he is extremely proud of the success, which he attributes to his German-born Master Butcher of 30 years, Simon Tiefenbach. Tiefenbach says, “I have worked for many years combining fresh ingredients and customer feedback to refine what makes a unique and memorable sausage.The hard work has finally paid off.” Alongside the search for New Zealand’s Supreme Sausage, the inaugural People’s Choice Award was also staged, where consumers received their chance to vote. Peter Timbs Meats in Christchurch received this award for its beef sausage. For a comprehensive list of the Gold, Silver and Bronze medallists visit www.fmcg.co.nz
After two days of intense judging, the nation’s top sausages were revealed and 450 entries in the contest were whittled down to less than 20 supreme finalists. Head judge Kerry Tyack said: “When it came to selecting the best of the best, the quality was so high that we made a decision to have more than one supreme finalist in two categories, says Tyack. The 17 finalists in the categories were: • Beef: Peter Timbs Meats, Christchurch • Pork: Meat Cuisine, Auckland • Pork: Waikanae Butchery, Wellington • Saveloy/Polony/Cocktail: Saveloy, Southbridge Tasty Meats, Canterbury • Frankfurters & Rounds: Smoked Kielbasa, Island Bay Butchery, Wellington • Traditional: Cumberland, Netherby Meats, Ashburton • Flavoured Precooked: Precooked Cheese, Tegel, Auckland • Precooked: Gluten Free Precooked, Hellers Tasty, Christchurch • Flavoured: Angus, Brookfield New World, Tauranga • International Bratwursts & Boerwors: Boerwors, Ellerslie Meats, Auckland • International Spicy: Chorizo, Peter Timbs Meats, Christchurch • International Spicy: Merguez, Franklin Country Meats, Auckland • International Mild: Italian Pork & Fennel, Seaside Meats, Auckland • Gourmet: Pork & Fennel, Mediterranean Wholesale Market, Wanaka • Gourmet: Venison, Hellers Tasty, Christchurch • Gourmet: Chicken with Lime, Janssen’s Continental, Auckland • Gourmet: Razorback Wild Boar & Bacon, Harmony Foods, Paeroa
decEMber 2010 FMCG
15
feat ure
World Dairy Summit 2010 More than 1600 delegates from 66 countries attended the World Dairy Summit 2010 in Auckland in November, including many CEOs of leading international dairy organisations and ministers of agriculture. Sustainability was a hot topic.
T iry Summit 2010.
rld Da Dr Jeremy Hill at the Wo
16
FMCG decEMber 2010
he three-day event was an important opportunity for the New Zealand dairy industry to showcase its sustainable practices and innovations to international colleagues, and maintain competitiveness with the rest of the world. Delegates were able to network with other leaders in their respective fields, to learn how others are dealing with the practical issues surrounding sustainability of the dairy industry. A Health & Nutrition Conference, Marketing Conference and a Food Additive Standards Workshop were part of the programme. Technical tours included visits to key dairy industry sites in the Waikato, Palmerston North and
a number of other regions. A conference on the final day was dedicated to environmental issues. Run by the International Dairy Federation (IDF), the conference presented the latest research findings and studies on climate change, carbon footprinting, water footprinting and reuse/recycling. The conference started with a keynote speech from New Zealand scientist, Professor Martin Manning, who presented the latest climate science findings and discussed the direction that the dairy sector needs to take. “To be sustainable, this sector needs to become adapted in ways that are consistent with the increasing pressures on our environment and threats to its stability,� said Manning,
strap
Camembert production. Delegates at a farming policies presentation.
World dairy leaders at the World Dairy Summit 2010.
director of the Climate Change Research Institute in Wellington. “Two key factors for this are the need for better approaches to water management and the reduction of greenhouse gas emissions.” Other presenters discussed water accounting and ways to calculate water footprints. “The dairy sector needs to improve with respect to water usage,” said Australian academic Dr Sven Lundie, a specialist in sustainability at the University of New South Wales. “Like carbon footprint methodology, there is a need for a consistent global approach that is in line with international standards. In many ways, water usage is potentially more important than carbon emissions, as water – or lack of it – can have a direct and immediate impact on people’s lives.” Nestlé executive Dr Hans Johr discussed the dairy supply chain, looking at sustainability through food security and the high nutritional value of milk. He highlighted sustainability at farm level: “In order to improve, a farm must be assessed in a holistic approach on environmental, social and economical aspects, all of which are equally important to
ensure long-term, sustainable production.” Chairman of the IDF in New Zealand, Dr Jeremy Hill, is Fonterra’s chief technology officer and is a director on a number of boards including the Global Dairy Platform. He said at the summit: “Hot topics include the promotion and enhancement of the nutrient density/ richness credentials of dairy and establishing a fair and balanced view of milk fat based on sound science rather than opinion and doctrine. Sustainability is also a huge topic, but here we need to look at sustainability in the broader context of food security, sustainable nutrition, sustainable industry development and employment and of course a sustainable environment. We must also not forget that diets need to be sustainable from a cost, sensory, enjoyment and satisfaction perspective. Dairy has a lot to offer if we look at all aspects of sustainability.” Food assurance and safety are also important topics, said Hill. The development of methods and systems to guarantee the authenticity and safety of milk and dairy products throughout the supply chain will be critical to the development of the dairy sector. World population growth and demand for superior nutrition bodes well for dairy, but addressing these issues will be an important determinant of the future
success of the sector. “Addressing some of dairy’s most significant issues will require sectorwide collaboration and strong scientific and technical leadership,” said Hill. “To become more efficient we need not only more common standards but also the methods used to verify compliance with those standards. Regulations need to protect consumers from false claims, and ensure food safety, but not be so restrictive that they stifle innovation and our ability to deliver the natural goodness of dairy in new formats and to new markets. The development of cost-effective ways to meet regulations underpinned by robust science will have a key role in improving the efficiency of the supply chain.” The next IDFWorld Dairy Summit will be organised in Parma, Italy. The theme for 2011 is ‘Sustainable Food Security’, a topic of great significance to the entire world dairy community. Next year, a new Round Table on dairy supply chain issues will gather active representatives from various key groups in stimulating debates and ensure participation of more stakeholders from all parts of the dairy chain, as well as different regions of the world. A series of joint conferences for the summit is being organised with the Food and Agriculture Organisation (FAO) of the IDF United Nations. decEMber 2010 FMCG
17
fgc
Katherine Rich, CEO, New Zealand Food & Grocery Council. Email: Katherine.rich@fgc.co.nz
Beware the sledgehammer Voluntary fortification the way to go. By KATHERINE RICH
Too often when discussing vitamin or mineral deficiencies in New Zealanders’ diets, the kneejerk reaction from public health activists is to call for mandatory fortification. However, while dosing popular FMCG products like bread, water or dairy products might seem like a simple solution, as so often happens, the execution and outcome of such interventions are complex and hotly debated. In the past month public health activists have criticised the New Zealand Food and Grocery Council (FGC) and the Association of Bakers for our opposition to mandatory fortification of all bread with folic acid. They have attempted to relitigate the Government’s decision last year to defer the food standard, by media stunts blaming opponents for every neural tube defect (NTD) in New Zealand. It’s sensationalist nonsense. It’s important to note that neither FGC nor theAssociation of Bakers oppose all mandatory fortification efforts. Fortification programmes have been successful in many third world and developing countries to significantly improve the diets of their populations. In many of these interventions the benefits have far outweighed potential risks. But our support is limited. New Zealand, is in quite a different boat to less fortunate nations. Today, when the populations of developed countries like ours are wellnourished, authorities have to deal with different challenges when considering fortification programmes. When a nutritional deficiency is limited to a subset of the population, officials have to establish the right dose of fortificant so that it is effective but not toxic. They have to find a dose that ensures the benefits to a proposed population, without introducing unacceptable risks. When bakers just want to focus on baking good bread it’s understandable they begin to feel uncomfortable when asked to become chemists.This is doubly so when the science is not settled, and when New Zealanders have made it clear they do not support such a programme. It’s very easy to see why the debate about folic acid becomes so heated. While supporters of mandatory fortification continue to inflate the benefits, they continually dismiss the potential risks. Work done for Food Standards Australia New Zealand 18
FMCG decEMber 2010
(FSANZ) estimated that dosing every loaf of bread in New Zealand would probably prevent one to three NTDs per year. For those affected families, this would be a godsend, but the tough question for supporters and government officials is, ‘what are the risks for everyone else and do the benefits outweigh the risks?’ NTDs in New Zealand are very rare and the number per 1000 births has been in steep decline for the past few decades without any mandatory programme. Likewise only a tiny proportion of the New Zealand population is pregnant at any one time – around 1%. Academics advising FGC point out that we would be exposing the remaining 99% of the New Zealand population in order to reach that even tinier subset of pregnant women who have an NTD risk. These academics see mandatory fortification as a sledgehammer to crack a walnut. Academics around the world are increasingly asking questions about the relationship between the long-term effects of artificially raising folic acid levels through fortification and cancer levels. Some publications have described the behaviour of folic acid fortification as exhibiting ‘Jekyll and Hyde characteristics’, providing protection for some consumers while causing harm to others. In particular, while dietary folate can have a protective effect for some cancers, too much folic acid has been associated with an increased incidence of bowel, prostate and breast cancers in certain subsets of the population. It was a major step for the Government to defer the Mandatory Fortification Food Standard and members of FGC have worked hard to address the Prime Minister’s call for some kind of voluntary fortification programme for breads, targeted at women of childbearing age. We agree that limited intervention is sensible, because it is not across the board and bakers can avoid the breads most consumed by men and children. Since the introduction of voluntary fortification of bread, approximately 30% of our members’ ranges are fortified. We continue to play a constructive role in a voluntary system. It’s dosing the entire country through every slice of bread produced that we will continue to oppose.
gs1
Learn from the net
Dr Peter Stevens, chief executive, GS1.
Why standards are sometimes best. By DR PETER STEVENS Many years ago (about 1995) I did a three-year stint, teaching high-tech marketing at Victoria University of Wellington. My flagship was the post-grad Marketing Futures course. As the academic, I was to expose students doing MBAs and Post-Graduate Diplomas in Marketing to whatever was the ‘next big thing’. I will always remember that a student, who was then a senior staffer at Telecom New Zealand, led a complaint against my teaching, claiming that “the internet is, and will forever be, irrelevant to business”. I’m sure this sounds absurd to you in 2010, but in 1995 this complaint was taken seriously, and I was hauled through the complaints process. The reason was, at that time, the penetration of the internet was less than 2%, and there were only 212 corporate websites in New Zealand. I knew every one of them by name. In the end, the complaint was dismissed because my Marketing Futures course was defended as being the academic’s best pick about what would be coming ‘down the pipe’ and would change the marketing discipline. So, given the early stage evolution of the internet at the time, how did I know that the internet would change everything? Well, I’d come out of Apple Computer, and had seen how the internet had altered the way communication, information-acquisition and collaboration had changed the world of higher education. Secondly, it was clear that internet-based standards and technologies (such as packet switching, the web and email) had reduced the cost, and increased the reliability and scalability of networks by orders of magnitude. Lastly, it was clear even at that time, that businesses (primarily in the US) that had embraced the internet were leveraging it for substantial competitive advantage. In fact, there was a time when a start-up called Amazon sent me Christmas presents thanking me for my business. So, what made the internet so successful? I firmly believe some of the answers to this question lie in the promulgation and ubiquitous adoption of open standards. These cut a swath through the then-myriad point-to-point proprietary networks that businesses
were using. Businesses eventually realised that these core standards provide a reliable way to build networks and exchange information (Internet Protocol, IP; Domain Name System, DNS; Hypertext Transfer Protocol, http; Simple Mail Transport Protocol, SMTP). What’s the message here for FMCG readers? Some recent initiatives in the market bear examination. Some brand owners are trying to use new barcodes (think QR Codes, for example) on their packaging or advertising to allow consumers to link to product information via their mobile phone. Another example is where trading partners try to get suppliers to exchange information electronically (product catalogue, order-to-cash messages) using made-up standards that are dramatically different to those used by others in the market.Yet another is where companies are implementing radio frequency ID that is non-EPC (Electronic Product Code) standard. However attractive these things may look, interoperability is almost always in the best interests of your customers and trading partners. Using core identification and communication standards does not preclude the development of competitive advantage, or inhibit innovation or brand development. Remember how the web works, for example. Does every website or online offering look or work the same? Of course not. So, let’s keep in mind the lessons from the internet. We all need to remember that although it might seem a great idea to invent novel and proprietary methods for communicating with your trading partners or consumers, standardised ways of doing this are often smarter to use if present, and they may win out in the end anyway.
decEMber 2010 FMCG
19
n a rgo n
Trina Snow, executive director, NARGON.
Forget the numbers Focus on people. By trina snow
2010 has been a busy and often tough year for supermarkets and grocery stores. There has been an economic recession, tax cuts and GST increases with big changes coming soon to employment law, tobacco and alcohol. To help our members keep up with what’s happening in New Zealand and around the world, we produce a monthly Nargon News. This newsletter contains short articles about key industry topics, exclusive columns from politicians, a summary of statistics, information on trends, helpful tips and online tools. One of the most popular features is the profile section which is a short interview with a person in the industry. The questions are a mix of serious and quirky because the profile is intended to help readers get to know people in their sector a little better. It can be easy to get caught up in a world of numbers when you are juggling sales, payroll, invoices, GST changes and margins. However, as we move into the festive season, it’s worth remembering that our industry is all about the people on both sides of the counter – the customers and staff. In 2010, the profiles seemed to capture the diversity, energy and humour of our sector so in the final column for 2010 we wanted to share some of the highlights. The first question asked how long people had been involved in the industry, and the answers ranged from
20
FMCG decEMber 2010
three to over 30 years. We have some people with decades of experience and others just making their way. In terms of employees, the range was again huge from 18 (including part-timers) in a rural store to 450 involved in a big operation. We asked people which product surprised them most with its success.The answers varied from V to Magnum ice-creams but the most common answer was ‘bottled water’. One veteran interviewee noted that he was surprised at how important beer and wine sales had become to the sector. There was more agreement on the favourite and least favourite aspects of the job. In terms of the favourite, interacting with customers and meeting people were the clear winners. For least favourite, paperwork/red tape was at the top but one interviewee did nominate the ‘radical attitudes of some towards the industry’. Perhaps the hardest question related to the three items people would take if they were stuck on a desert island. The question related to books, music and movies rather than survival equipment or company, but many chose to disregard those rules. Suggestions included Sudoku books, Lonely Planet Travel Guides, ‘Best of the 80s’ albums and science fiction thrillers. One said ‘my wife’ while another took a very different approach plumping for a ‘bevy of beauties from Las Vegas’. In terms of simplicity, it was hard to beat the guy who instantly said ‘a golf club and two golf balls’! The final question asked about their favourite section of the store. Basically, if they were only allowed to work in one area, which would be it? The newsletter editor had expected the liquor aisle to be the runaway winner but a range of sections was selected including bulk foods, tills, bakery, produce, deli and liquor. Most found being profiled a painless, perhaps even enjoyable, experience. It simply involves a short phone interview and sending in a photo or two. We certainly have plenty of feedback that readers have enjoyed seeing more about the people in our industry. If Nargon members want to be profiled next year 2011, simply drop me an email (director@nargon.co.nz).
What’s Hot Mushrooms... its all about taste! 350gm White Sliced Mushrooms – Family Pack: A must for any summer meal – sliced mushrooms are extremely versatile and fit perfectly with today’s modern lifestyle and eating habits. 400gm Portabello Mushrooms – Family Pack: At last a pack for every BBQ occasion – mushrooms are high in nutritional value – they are a good source of B vitamins, potassium, selenium, copper, phosphorous and the antioxidant ergothioneine, while still being low in calories, fat and sodium. Meadows Sales Team – 0800 687 476.
Sleep easy with Blackmores
What’s Hot
Blackmores understands the importance of a good night’s sleep, and the latest addition to its Sleep Support Range has specifically chosen ingredients to particularly support a sound and deep sleep. The research based valerian extract in Sleep Sound Formula™ supports the body’s natural ability to sleep. Lemon balm has traditionally been used to calm and settle. Magnesium is important for healthy muscle function and relaxation of tense muscles. • Always read the label and use only as directed. If symptoms persist see your healthcare professional. TAPS PP9214.
For more information contact API Consumer Brands: freephone 0508 776 746.
22
FMCG decEMber 2010
Obento – Japanese Style Soy sauce Obento Soy Sauce has proved very popular in all taste tests undertaken, which is not surprising as this naturally brewed soy sauce takes 6 months to perfect before bottling. With a much lower salt content than other Japanese soy sauces on the NZ market, Obento provides a lovely rounded flavour that is ideal to use for dipping, marinating or cooking. It has been launched in two popular sizes 250ml x6 & 1 litre x12. For more information on Obento Japanese Style Soy Sauce 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
Be Kind to your body and excite your tastebuds Kind Fruit & Nut Bars Kind bars are made from wholesome all-natural ingredients you can actually see and pronounce. Not only are these bars packed with nutrition but they also taste great! • Gluten & Wheat Free (promoted by Coeliac Society) • Portion controlled and low Glycemic Index • Appeal to women • 6 Flavours in range • Healthy GP • Attractive display Sales & Distribution by: GDLbrands Email sales@gdlbrands.co.nz Phone: 09 412 7146
What’s Hot
Known as the healing herb it is said to help stomach aches, morning sickness, travel sickness, colds, flu, and cholesterol. It has antiseptic, lymph-cleansing, and circulation-stimulating qualities. It cleans the system of toxins, eases inflammation of joints and muscle tissue, aids general well being – and has many many more benefits including being known as an aphrodisiac! Enjoy The Benefits With A Refreshing Taste With Royalty Ginger Beer. A Thirst Quenching And Healthy Refreshment For The Summer Ahead!
TasteMaker Premium New Zealand Vinegars New Zealand produces fantastic grapes, perfect for great vinegar. Which begs the question – why are most balsamic and wine vinegars imported? Unable to find a logical answer, TasteMaker set out to create a range of kiwi-made vinegars to showcase New Zealand produce. The result? A selection of local vinegars slowly matured to perfection. Available at supermarkets in seven great tastes; Aged Balsamic, Raspberry Balsamic, Fig Balsamic, Red Wine, White Wine, Manuka Honey & Cider and Traditional Malt.
Sun Mark Ltd, 428 Long Drive, Greenford, England, UB6 8UH www.sunmark.co.uk
Contact TasteMaker’s sales department on 03 968 9630 or email sales@tastemaker.co.nz
Hellers taste success
new gaming cards
Hellers Gold Label Venison Sausages and Hellers Gluten Free Precooked Sausages topped their categories and won gold medals at the 2010 Great New Zealand Sausage Competition. Hellers Gold Label Venison uses succulent lean venison and a little pork for a juicy texture, seasoned with natural spices, and has a coarse texture all wrapped up in a large natural casing. The other category winner, Hellers Sensational Precooked Sausages, are made from a selection of finely chopped meats, lightly seasoned, cooked and packed in their handy resealable pack, and perfect for the whole family BBQ, picnic or summer holiday.
New to Gift Station stands are gaming cards, including leading seller the Ultimate Game Card, IMVU and Moshi Monsters. Key benefit: don’t use your credit card online. Internationally, the gaming card category accounts for around 25% of all gift card sales. • In NZ, 89% of households have a device for playing computer games • The average age of a gamer is 33 years • 44% of gamers are female and 56% are male • 91% of New Zealanders aged 6 to 15 years compared with 43% of those over the age of 50 play video games
What’s Hot
There are a thousand reasons why ginger is good for you!
For more information and to stock these cards, contact Ezi-Pay on 0800 960 000 or visit www.ezipay.co.nz
decEMber 2010 FMCG
23
cate go r y c h e c k
Snack time! Taste and a competitive price seem to be the driving factors in the snack category in supermarkets, but there is also an element of nutritional consideration in the purchase. FMCG investigates the latest trends and plans for 2011. Meat snacks Jack Link’s Beef Snacks are the driving force behind the growth of the meat snacks category in New Zealand, says Kevin McCormick, sales and marketing manager – Jack Link’s. With 80% market share and growing at 15% (MAT to 4/7/2010) these New Zealand made snacks are proving popular with all ages. Being high in protein and iron and low in fat makes them ideal for people who want a healthier snack than traditional carbohydrate-based snacks. The range of beef jerky, steak bars and beef sticks is so versatile you can take and eat them anywhere – in between meals, at the gym, while watching the game, hiking or camping or included in the lunchbox as a healthier alternative. GDLbrands now represents the largest pork crackling/scratchings manufacturer in the UK – Green Top Snacks. Pork snacks are shelf stable, ready-to-eat snacks that complement 24
FMCG decEMber 2010
an end-of-day beer or wine very well. Pork snacks have been very popular in the UK and Europe for 30 or more years. The new soft crackling version has proven extremely popular in New Zealand and is quickly establishing a strong position in the snack category. GDLbrands manager Frank Geaney told FMCG: “Our products generally have a good combination of taste and nutritional benefits, so we are currently working with a competitively low retail price strategy to encourage consumers to try our products. This is working well while we establish the brand, but it is essential for both the retailer and the brand that we don’t price promote these products too often as consumers are quick to cheapen a brand if the price is too low for too long.” GDLbrands’ products ranged in supermarkets include Mountain Beef Jerky; Go Gummi’s; Kind Bars; Jolly Time Popcorn; GTS Pork Scratchings; GTS Pork Crackling; VooDooo; and
snack fo o ds
Cocoa Farm chocolate. “We are encouraged by substantially improving sales of our core lines especially in supermarkets. Our focus through 2011 will be to establish the right products in the right supermarkets,” added Geaney.
Microwave popcorn Ezipop Microwave Popcorn is fast establishing itself as a strong number two player in the microwave popcorn segment, according to Brandlines business manager Andrea Crutchley. With an 8.4% dollar share of the total popcorn market and growing at 35.2% (MAT to 4/7/2010) Ezipop was already performing strongly and results have improved further through Ezipop completing a Sky Movie Sponsorship programme in late September and early October, which has seen exceptional results, with high consumer demand and excellent trade support. Consumers seem to enjoy both the Light Butter and Extra Butter options offered through Ezipop with sales being very similar across both flavours (slightly higher in Extra Butter) and the Butter Mini Packs are a perfect option for portion control. NPD is currently being investigated, with some exciting new flavours being reviewed for a 2011 launch, revealed Crutchley.
Salty Snacks “The Salty Snacks category is worth $275 million and grew $11.9m (+4.5%) over the past 12 months (Aztec MAT to 31/10/10),” said Josette Prince – Griffin’s marketing and business development manager. Over this same time period Griffin’s has contributed to an astounding $11.7m of the $11.9m. “Growth has been a result of successful brand and NPD launches which have resulted in Griffin’s growing at +24.2% (Aztec MAT
period to 31/10/10),” said Prince. Uppercuts Tapas & Crostini were re-launched and a new ‘Delicut’ range launched in 2010. Eta Kettles saw a packaging renovation and amalgamation of Uppercuts Kettles under ETA Kettles. SKOF is an exciting innovative brand that has seen great success since launch in 2009.To continue to support the SKOF Brand, Griffin’s launched 30-second and 15-second TVCs in October 2010 and has already seen a 20% increase in baseline sales. This brand support will continue into 2011.
O’Nuts Alexandra Fine Foods produces two handcrafted nut snack products – O’Nuts ‘Raving Roast’ and O’Nuts ‘Raving Cajun’. Both products are their own proprietary blend and include specially coated peanuts, almonds, pumpkin kernels as well as other natural ingredients. The nuts are dusted with New Zealand sea salt and batch roasted at the factory in Panmure, Auckland. Packs are gas-flushed to retain freshness. ‘Raving Cajun’ is coated with cajun mix, which adds a little spice to the flavour. “Over the last six months we have been through a complete re-design of the O’Nuts packaging. Both products are now presented in standup re-sealable pouches with excellent graphics which have excellent appetite appeal,” said Alexandra Fine Foods director Murray Kinsella. “While the product is not currently ranged at either Foodstuffs or Progressive, we sell independently to around 20 New World and a lesser number of Pak’nSave supermarkets. O’Nuts is well supported by key independents such as Farro Fresh and Moore Wilson as well as major
THE BREAKDOWN Current MAT to 07 NOV 2010 Total snackfoods: $286.228m. Value % Chg vs YA 4.4 T. Potato chips: $121.605m. Value % Chg vs YA 0.5 T. Extruded snacks: $33.248m. Value % Chg vs YA 4.3 T. Corn chips: $33.550m. Value % Chg vs YA 25.2 T. Packaged nuts: $46.963m. Value % Chg vs YA 13.8 T. Other cereal snacks: $33.303m. Value % Chg vs YA -6.1 T. Unprocessed snack foods: $9.982m. Value % Chg vs YA -0.4 T. Shelf stable dips: $3.829m. Value % Chg vs YA -3.3 T. Meat snacks: $2.438m. Value % Chg vs YA 26.5 T. Bread snacks: $1.312m. Value % Chg vs YA -25.5 * ACNielsen New Zealand ScanTrack (Databank)
decEMber 2010 FMCG
25
cate go r y c h e c k
Snack time! department stores, delis and wineries.” While there are a number of imported nut products available, including bulk nuts through supermarkets, O’Nuts is a unique blend created and made in New Zealand and positioned at the quality, natural and freshness end of the market.
Crisps Vogel’s Deli Style Crisps in three flavours – Natural, Sour Cream & Chives and Smokey Capsicum – were launched in early November 2010. “Sales so far are well ahead of forecast and we have had excellent feedback from the trade,” said Smart Foods general manager Vicky Taylor. “We are fully focused on supporting the Vogel’s Deli Style Crisps launch with instore and consumer activity.” The consumer trends in this category include growth in premium products, and also lower fat/multigrain products. “Vogel’s Deli Style Crisps are positioned to appeal to consumers looking for these types of products – they are made with five grains and are baked not fried.That means they have 30% less fat than the market-leading multigrain chip,” explained Taylor. “Vogel’s is of course one of New Zealand’s best loved brands, with a long history in the bread category. We launched into the cereal category about five years ago, and now hold a respectable 14.1% share MAT, up from 11% a year ago. We are the fastest growing supplier in the muesli segment of the market and now we want to take that same success into the snacks category.” Recent launches from ABE’S Real Bagels include ABE’S Sweet Bagel Bites (in Choc Chip and Honey Raisin) and another variant in the ABE’S Bagel Crisps range – Cracked 26
FMCG decEMber 2010
Pepper & Sea Salt. “The Sweet Bagel Bites are quite a different proposition from competitors, having much less fat and sugar,” said Megan Sargent, director ABE’S Real Bagels. “We’re planning to add a variety pack to the range, containing three different flavours. The Cracked Pepper & Sea Salt has only just been launched, but already the UPSPW [units per store per week] are equivalent to other variants in the range.” The company plans to add to its fresh bagel offering and also to expand its bagel crisps/bites range.
Wrapped Snacks The Wrapped Snack category has become increasingly significant in recent years as shoppers search for ‘on the go’ snacking choices. “The category is worth $129m (Aztec MAT data to 31/10/10) with value growth back on the increase to 1.9% driven by Griffin’s successful innovation launches,” said Alison Mitchell, senior category manager, Griffin’s Foods. Nut and muesli bars remain the most significant segments both providing strong growth in the latest MAT period. Nut bars grew at 8% led by a very successful packaging relaunch of the Nice & Natural bar range, which highlights the honest goodness of a truly natural product in a delicious and appealing way. Nice & Natural is working to drive growth across all segments and has recently launched Nice & Natural Superfruits. These muesli bars are crammed with real, antioxidant fruit pieces, toasted muesli and delicious seeds. Containing less than three grams of fat, they are the perfect healthy snack that taps into the growing global trends
of products that deliver specific health benefits.The success of this launch has attributed to Nice & Natural Muesli range growth at 51.8% in the Aztec MAT period to 31/10/10. Wrapped snacks now includes a diverse range of snacks – from very healthy calorie-controlled adult products to fun products for kids’ lunchboxes. “Growth in the kids’ segments requires innovation and new products to keep kids interested with fresh new choices,” commented Jenny Gilbert, marketing manager – Wrapped Snacks, Griffin’s Foods. Nice & Natural recently added a new range to its fruit novelty portfolio, with Nice & Natural Fruit Hoops, Turbos and Charms. These products are the ideal healthier lunchbox treat, with 65% fruit juice, taste, shape and novelty ‘play’ factor proving to be a hit with kids. Charms and Turbo are already the second and third ranked fruit novelty skus showing how effective innovation can be in this segment. “With so much happening in the category it can be challenging for retailers to keep shelf layouts up to date,” said Gilbert. “Shelves can become cluttered and confusing for shoppers, but Griffin’s has a dedicated and experienced Space Management expert who has been working successfully with stores to maximise the potential of their space in this category. Nice & Natural is committed to providing true innovation and support to drive the Wrapped Snack category forward. With increasingly time poor shoppers looking for healthy snacking options there is no doubt this category still has significant potential to grow,” concludes Gilbert.
FNZ Brands: The Distributor with a Difference
FNZ Brands was started in 2009 and distributes the Ferrero range of brands including Ferrero Rocher, the number one ranking premium boxed chocolate brand; Nutella, the number one ranking hazelnut spread; Kinder Surprise, the number one ranking children’s confectionery product; Tic Tac, the number two ranking mint* and Bueno, the unique chocolate bar. FNZ Brands also distributes the Waterthins premium cracker range, as well as the CareDent brand of oral care flossing products. In its first year of operation, FNZ Brands grew sales of its brand portfolio by over 30%. With sales of over $20m per year, FNZ Brands only sells 37 skus which allows it to focus its efforts on building distribution, gaining displays and improving shelf position for its brands. FNZ Brands employs a team of 8 sales representatives, who are supported by 40 merchandisers; this team services stores across the length and breadth of New Zealand. The head office is located in Auckland and provides support for the sales team with 3 regional sales managers, 2 account managers, 1 trade marketing manager and a key account assistant. FNZ Brands also operates a route trade sales team along with full warehousing and logistics capability in a 15,000m² warehouse space with over 10,000 pallet locations, so that most retailers can place orders and receive stock the next day. We’ve got the capacity to do justice to your brand and we can cover everything from marketing (including media buying, consumer promotion, public relations etc.) to full supply chain management right down to debt collection. At FNZ Brands, you can rest assured that your brands definitely won’t get lost in the mix. We’re very focussed on maintaining the highest levels of customer service, not only to the brands we represent but also to the retailers who do business with us every day.
*Source: Nielsen Scan Sales. TKA Value Sales Current MAT to 7th Nov 2010.
28
FMCG decEMber 2010
co mpa n y pro f i le
FNZ Brands in Brief Full Service Distributor: we offer the full range of services including selling/merchandising as well as warehousing and more. Capacity: we have the capacity in our sales and merchandising team to take on your additional business now. Focus: as we only have 37 skus, we are able to give your brands the significant focus that they require to grow. Proven Track Record of Success: our business has grown over 30% in the past year which shows that we are able to achieve significant growth for established brands. Full coverage: we cover grocery and convenience/ petrol/oil. One Stop Shop: from Sales and Marketing to Management and Logistics, FNZ Brands handles it all for you.
Contact details: Phillip Osborne, Group CEO, Gourmet Food Holdings Email: phillip.osborne@rosellafoods.com.au Phone: 0061418398018 . www.fnzbrands.co.nz
decEMber 2010 FMCG
29
Sealord is New Zealand’s favourite seafood brand and the market leader in both the canned and frozen seafood categories, offering an expansive range of quality seafood products. Based in Nelson, Sealord prides itself on offering innovative, top quality products and sustainable species which are carefully handled from the sea to your plate. Sealord’s canned portfolio has grown by 20.6% in the last 24 months, ahead of the $95.4m canned category which has grown by 13.3% (MAT to 2.11.10). Sealord is targeting specific consumer groups to promote the benefits of eating seafood, communicated in a range of mediums including sampling, online, and print, to drive sales. Sealord is changing the face of the freezer with quality and innovation, proudly bringing a range of completely redeveloped, quality products to the freezer. The entire
30
FMCG decEMber 2010
Sealord frozen portfolio re-launched this year with quality seafood and ingredients, new packaging designs and formats, and all products are proudly made in New Zealand using a healthier blend of sunflower and canola oils. All products are a good source of Omega 3 and are available in new easy open and re-closable packs. Supporting the Sealord frozen re-launch is a significant marketing spend to bring consumers to the freezer including in-store sampling, TV commercials, and print. The new Sealord frozen range has contributed to an improvement in category performance with Classic Crumb Hoki sitting at number 1 in the fillets segment and number 2 in the total category. Classic Crumb Hoki, Lemon Pepper Hoki, and Potato Crumb Hoki sit in the top 3 of the fillets segment holding 29.5% volume share*. sealord.com
co mpa n y pro f i le
SEALORD SWIM FOR LIFE
Deli MENU
Learning to swim is not a requirement of the school curriculum and as a result, the majority of our children are not learning to swim and be safe in the water. This is contributing to New Zealand having one of the highest drowning rates in the OECD. Survival in and around the water is an everyday part of life at Sealord, so Sealord have teamed up with Water Safety New Zealand to establish the Sealord Swim for Life initiative – a national project to address a dramatic decline in the swimming ability of New Zealand children. The goal of this new initiative is to equip New Zealand children with the essential skills to swim 200 metres – the benchmark for safety and survival in the water. For more information or to register for Sealord Swim for Life visit swimforlife.org.nz.
After 18 months in the market, Deli Menu continues to drive category growth with 3 SKUs sitting in the top 3 products and run-rates outperforming the category average of 3.1 USW*. Since launch, Deli Menu has contributed to positive growth of the pre-packed meals category, with the brand reaching 42.6% value share (Qtr to 31.10.10). New Deli Menu Salads have launched to further stimulate the category. They are ideal for summer and are available in two varieties Mixed Bean with Tuna, and Balsamic White Bean with Tuna. delimenu.co.nz *Aztec data 4 weeks to 31.10.10
- ,$ &$
(#
JH *@TSH H HJ Q@ (§L *H@ . HLLHMF 3 nga of the RV tao l D the SG is – ¢ a visuathe ng Tiki and is
immi tiative ariki are and – the sw Life ini Kautiki rd Swim For ious our tam survival skill. e. Sealo of how prec ming as a For Lif im er . Swim remind rtance of sw Survive to impo n to . Lear l record . to Swim persona rvive Learn t is your swim and su or ssp to swim e Pa cher or can For Lif are learning im tea s, Sw u u nt yo re yo The w well your pa pa ge and ssport. see ho Pa the skillsd date the in your achieve n an As you ctor can sig ment sticker u being ards yo th the instru the achieve ild tow wi place skills bu d stronger 0m the all an 20 r r Togetheto swim longe able to swim able uora! al being end go Kautiki! Ka
3N ÂMC NTS LNQD @ANTS 2D@KNQC 2VHL %NQ +HED UHRHS
VVV RVHLENQKHED NQF MY
x
/
/
Putting your head under the water is a great start to learning to swim and survive.
the HKKR K 2J fely using k how ec UHU@ sa 2TQ of water always chgo in. l, u t ge poo e yo d ou bmer in an der of a is befor d su . d Get er an la e or e wat p water water edg eep th dee under bubbles. d waist head is w lo in b Stand so your yes and 3HO lly e your @EDSXer carefu Open at . SDQ 2 6@ ter the w e depth ys en re of th a lw su A if un
For more information contact your Sealord representative or phone 0800 732 5673
decEMber 2010 FMCG
31
company profile
Night ’n Day foodstores expand across nZ New franchise opportunities, new partnership in 2011. The Night ’n Day Foodstores franchise offers excellent group buying, increased profitability, uniformed image, full staff training, assistance in updating shop layouts and designs, bimonthly profit reports, assistance with staff rosters, group advertising, full accounting facilities and a full consultation service. Denise and Andrew Lane. Denise and Andrew Lane, the directors of Night ’n Day Foodstores Ltd, have been successfully retailing in the trade since 1978. They established Night ’n Day Foodstore Ltd in 1990, began converting existing foodstores and implemented a franchise system. The Night ’n Day Foodstore chain began with outlets open on a 24-hour basis, seven days a week, in Christchurch, Dunedin and Invercargill and from 7am to 11pm in Timaru and Nelson. The outlets are now located throughout the South Island with expansion plans for the rest of New Zealand. Andrew Lane explains: “2011 is going to be a very challenging year for Night ’n Day Foodstores as we expand into the North Island in a partnership with Gull taking over, rebranding and refurbishing the 21 Woolworths Quick Stop and Woolworths Micro sites, to offer the same service and products enjoyed at Night ’n Day Foodstores throughout the South Island. Not only does it fulfil the continual requests for the brand to head north but also it presents opportunities for new franchisees. It is a very exciting time. Our sites throughout the South Island are stand-alone and we welcome the opportunity to complement the Gull brand, which is also a family based business.”
32
FMCG decEMber 2010
Rare franchise opportunity Night ’n Day Foodstores is committed to a philosophy of quality service and presentation. “Our standards can be summed up in one word – excellence – and that must be reflected in every aspect of our business,” say the directors. “Our aim is to meet the demands of our customers and be leaders in the convenience grocery store market, hence our slogan: ‘We’ve got it when you want it’.” The company name and slogan promote the availability of a vast range of products at all hours – that is true convenience. Night ’n Day Foodstores has set new standards in convenience retailing throughout New Zealand. The company profile is easily recognisable, from uniforms incorporating the company colours and logo, to the shop signage, which is colourful, distinctive, appealing and suitable to adapt to any location. The Night ’n Day Foodstores directors are proud to announce their 21-store expansion into the North Island and the opportunity to share the benefits of their two proven and successful brands. “If you’re looking for an exciting franchise opportunity, join the Night ’n Day team. We offer an outstanding network of franchise support and training as well as proven marketing and advertising strategies,” say the directors.
Andrew Lane Night ’n Day Foodstores Mob: 0275 333 325 Ph: 03 471 7660, Fax: 03 479 2903 Email: andrew@nightnday.co.nz www.nightnday.co.nz
company profile
Coca-Cola Amatil - a kiwi success story Mention you work for Coca-Cola Amatil (N.Z.) Ltd (CCANZ), and eyebrows are raised. For good reason too – Coca-Cola is arguably the most recognised brand name on the planet. As an employer, CCANZ shares many brand attributes with its famous beverage - fun, excitement, enjoyment, uniqueness - but there is so much more to a career with Coca-Cola than meets the eye. Regardless of Coca-Cola’s American origins, CCANZ is a refreshingly kiwi company, in fact - in addition to Coca-Cola Classic, Diet Coke and Coke Zero, they are responsible for some of New Zealand’s most well-loved carbonated soft drinks, bottled waters, sports drinks and fruit juices. What many don’t know is that CCANZ produces over
100 brands and flavours, including household names such as Powerade, Pump, Kiwi Blue, Fanta, L&P, Sprite, Schweppes and Keri Juice. The culture of CCANZ has a great deal to do with its success, and it stems from six core values: People, Customer, Citizenship, Innovation, Passion and Excellence. When these values are lived and breathed by its people on a daily basis, when those people are valued, when they feel looked after, and when they are inspired and motivated to do truly great things, it’s no wonder Coca-Cola Amatil New Zealand is an employer of choice. Proof of CCANZ’s ambition for success is the fact that even as they celebrate a very successful 2010, they are already focusing on the future. It’s this kind of thinking that makes Coca-Cola Amatil NZ unlike any company you’ve ever worked for, and with its ability to attract, develop and retain great people with talent, drive, hunger, innovation, and imagination - who knows how far they could go? CCANZ is a kiwi success story, and they make no secret of the fact that they are looking for people to get on board and help write the thrilling next chapter. If you have designs on thriving in a fast paced environment and making your mark in a very big way, then work for the name that needs absolutely no introduction!
cokecareers.co.nz
Coca-Cola Amatil NZ is unlike any company you’ve ever worked for. It’s a fast paced, dynamic environment that’s jam-packed with talented people. It’s our teams that make our business what it is today: a totally refreshing workplace where together we make a difference.
www.cokecareers.co.nz
TM© Rugby World Cup Limited 2008 – 2011. All rights reserved.
[OYP]L
co mpa n y pro f i le
MOVING FROM STRENGTH TO STRENGTH
The Mix Stand: icandy designed and developed this destination floor stand for client Lion Nathan.
MTI Freedom merchandising system supplied by Propel Interactive as seen in Dick Smith flagship stores in NZ and Australia.
“This is a very exciting time for the SPOS Group and it is only the beginning. We want to stay ahead of trends happening in in-store marketing and make sure we provide Australian and New Zealand brands and retailers with new and innovative products that fit their needs.” David Evans – SPOS Group CEO
Leading provider of marketing at retail solutions SPOS has been moving from strength to strength. Last year proved a challenging time for the business with a volatile retail environment, but the team has been working hard and 2011 is shaping up to being a great success. Already successfully launched by SPOS in Australia, SPOS New Zealand has introduced two new divisions - icandy Creative and Propel Interactive. icandy Creative develops tailor-made point-of-sale displays and creative concepts for brands and retailers. It is a full service creative agency focusing on marketing at retail to help shoppers make purchasing decisions. icandy Creative’s services include concept development, graphic and industrial design, print production, project management and full production services. With four trophies awarded to them at the recent POPAI Marketing at Retail Awards, our icandy counterparts in Australia are already making their mark on retail display. Propel Interactive focuses on interactive displays that utilise the latest retail technology products to drive consumer decisions at point-of-sale. By leveraging state of the art technology, Propel helps achieve consistent communication across a range of platforms that include signage, electronic ticketing software and MTI interactive security solutions. SPOS continues to be a leading provider of marketing at retail solutions in New Zealand and Australia, creating and supplying effective point-of-sale materials designed to enhance the overall appearance of the products in-store and ultimately stimulate sales. SPOS Group includes three companies: SPOS Retail, icandy Creative and Propel Interactive.
16 Copsey Place, Avondale 1026, Auckland, NEW ZEALAND PH: +64 9 828 4877 FAX + 64 828 4377 Email sales@nzpos.co.nz Web www.spos.co.nz
decEMber 2010 FMCG
35
company profile
Humble Beginnings GDLbrands started in 1994 with a small team of 3 staff. Its aim was to provide retail outlets with a range of confectionery and snack products to improve add-on impulse purchases. Now with over 26 staff, GDLbrands has grown from strength to strength. The company has now grown to comprise of over 250 varieties of confectionery and snacks within its product range – it’s safe to say that GDLbrands has the category well covered! Taking advantage of a growing market, GDLbrands have introduced to New Zealand big international brands such as Jolly Time popcorn, Kind bars, Cocoa Farm chocolate, GTS pork snacks & Voodoo rocky road in recent years.
GDLbrands’ product and service offer is derived from retailer feedback so their product range and distribution fits well in route and supermarkets. Realising the potential of products from overseas that fit well into the New Zealand market, GDLbrands have developed their own range of confectionery – Go Gummi’s, a juicy, flavour packed gummi bear that is gluten free and 99% fat free. There is also a sugar free variant within the Go Gummi range.
Step by Step
Looking Forward
Working closely with retailers has been advantageous for GDLbrands. Their listening approach has been invaluable in determining the various needs of retailers in a whole bunch of different markets.
In the next 12 months, GDLbrands will improve the snack market by establishing existing and new products, invigorating the market yet again with products that consumers love.
=PcdaP[ Vd\\X R^]UTRcX^]Tah U^a cWT fW^[T UP\X[h
} 3T[XRX^db b^Uc YdXRh } 6[dcT] UaTT (( UPc UaTT } =PcdaP[ R^[^dab U[Pe^dab ^a bdVPa UaTT } # ePaXTcXTb X] Ud[[ aP]VT ?W) ( # #% k 5Pg) ' 50G 5A44 k 4\PX[) bP[Tb/VS[QaP]Sb R^ ]i 36 FMCG ! & decEMber 2010
When businesses want to talk to other businesses and the people in them… they talk to us
Mediaweb publisher of FMCG, the lead title for the fast moving consumer goods market sector, and its associated email newsletter foodnews. Five channels: • Business | Management | Leadership • Advertising | Media | Marketing • FMCG • Food & Beverage | Food Service | Hospitality • Screen Sector Across all media: Magazines, books & newsletters | emags & enewsletters directories & databases | events | social media | video photography | contract publishing | print & web design Visit mediaweb.co.nz to become a ‘friend of Mediaweb’ and receive: • Discounted subscriptions and special offers • Invitations to our events – wine, spirits & food tastings at some of the coolest venues in town Register for invitations to our events .... view pix from recent events at www.mediaweb.co.nz For all enquiries phone 0-9-845 5114 or email enquiries@mediaweb.co.nz
&
g rocer y b us ine ss New online visa check to help employers The Department of Labour is making it easier for employers to check whether people from overseas are entitled to work in New Zealand. The new Immigration Act came into effect on 29 November this year and continues the principle that businesses must not employ a non-New Zealander who isn’t entitled to work here. However, a key change in the new Act means that that holding a tax code declaration (IR330) form will no longer be a “reasonable excuse” for employing someone who isn’t entitled to work in New Zealand. Instead, businesses will need to show they took “reasonable precautions and exercised due diligence” to check that employees are entitled to work in the job they are being hired for. Project manager Wayne Levick says that to help businesses meet this new obligation, the Department has set up an online service called VisaView so employers can quickly and easily find out the work entitlement of non-New Zealand citizens. “We expect VisaView will be of particular value to employers who need quick and efficient ways to be confident seasonal workers are legally allowed to work for them,” Levick says. “The service was developed after extensive consultation with employers and has been launched well in advance of the Act coming into effect so that businesses have time to become familiar with their new obligations.” To use VisaView, employers register online and can then use the web to check a job applicant’s entitlement to work and any conditions attached. In most cases, the response is a quick ‘Yes’ or ‘No’, together with any specific work conditions that may apply to the individual. VisaView also helps employers to keep track of their enquiries so they can demonstrate they have taken “reasonable precautions and exercised due diligence” when hiring new employees, as required by the new legislation.
What documents show a prospective employee can work in New Zealand? Non-citizen • Foreign passport with a valid New Zealand work visa • Foreign passport with any valid New Zealand visa allowing work • Foreign passport with a New Zealand residence class visa Australian passport • Foreign passport with an Australian permanent resident visa and/or a current resident return visa New Zealand citizen • New Zealand passport • Full New Zealand birth certificate issued prior to 1 January 2006 showing parents’ names (with photo identification) • Full New Zealand birth certificate issued on or after 1 January 2006 that positively indicates New Zealand citizenship (with photo identification) • Certificate of grant of New Zealand citizenship (with photo identification) • Registration as a New Zealand citizen by descent under section 7(2) of the Citizenship Act 1977 (with photo identification) Continued next page.
40
FMCG decEMber 2010
• An evidentiary certificate issued under section 21 of the Citizenship Act 1977 confirming the person to be a New Zealand citizen (with photo identification) • Foreign passport with an endorsement indicating the fact of New Zealand citizenship (with photo identification) • New Zealand citizens include persons from the Cook Islands, Niue and Tokelau. Overview of the new Immigration Act The Immigration Act 2009 significantly modernises New Zealand’s immigration laws – but there are no major changes to the criteria under which most people travel to and stay in New Zealand. Key changes include: • new employer obligations designed to ensure prospective employees are legally entitled to work in New Zealand – and help for employers to make the checks quickly and easily while still retaining privacy protections; • new terminology – for example, the single term ‘visa’ will be used for authority to travel to and stay in New Zealand, and the terms ‘permit’ and ‘exemption’ will no longer be used; • strengthened visitor and family residence sponsorship criteria and obligations – to better protect sponsored people and New Zealand tax • new sponsorship opportunities for New Zealand private sector organisations and government agencies; • a new ‘interim visa’ option from early 2011 that, in many circumstances, will allow people to remain lawfully in New Zealand while a new temporary visa application is considered; • fairer and more efficient processes for detaining people who are a threat to the integrity of the immigration system or the security and safety of New Zealand (the date some of these provisions will come into effect is yet to be determined); • the green light for ‘biometrics’ to better verify the identity of foreign nationals (for example, fingerprints and iris scans), and the ability to share this information with some other government agencies, both in New Zealand and internationally (the date for this to take effect is yet to be confirmed). l
Useful websites • For more information about VisaView, see: www.immigration.govt.nz/ visaview • For more information about how to check work entitlement, see the Department of Labour guide at: www.immigration.govt.nz/community/ stream/visaview/workentitlement • For information about how to obtain a birth certificate, see: www.bdmonline.dia.govt.nz • For more information about the new Immigration Act, see: www.immigration.govt.nz/act.
decEMber 2010 FMCG
41
g rocer y b us ine ss Stay cool about food safety Expert tips from Chris Hewins, retail food specialist advisor, New Zealand Food Safety Authority. Food safety in large part hinges on making sure foods that need to be kept cold stay cold, and foods meant to be served hot stay hot to help stop harmful bacteria from growing. Making sure your equipment can keep food at the right temperatures and carrying out regular temperature checks are vital to operating a safe deli, where chilled cooked meats, prepared salads and other ready-to-eat foods need to be chilled to no more than 4ºC and hot chicken should be kept above 60ºC if bacteria are not to become an issue to your customers. The bacterium of biggest concern in chilled deli foods and in ready-to-eat processed seafood such as smoked fish is Listeria monocytogenes. It is particularly dangerous because – unlike most other bacteria – it keeps growing under refrigerated temperatures, and it can also grow in vacuum packs and under relatively acidic conditions. Fortunately for most people, illness caused by Listeria is relatively mild. However it can be much more serious for young children, the elderly and anyone with a weakened immune system, as well as for expecting mothers who risk miscarrying or going into early labour. To help keep your deli or seafood counter shipshape: • always thoroughly wash and dry your hands before serving customers or cutting/slicing/putting food on display; • use a ready supply of utensils such as tongs, or a barrier such as a cling film or disposable gloves, instead of directly handling foods; change gloves regularly if you use them (and remember that gloves do not replace hand washing); • take care when reaching across foods in a chilled display to avoid touching them with hands or clothes; • have a meticulous cleaning and sanitising regime for your utensils and slicers; • regularly clean display signs and other items that may come into contact with unwrapped deli foods; • maintain the cold chain – don’t leave food unrefrigerated for
long (eg while you restock your display); • removing food from its original packaging alters its shelflife; make sure you know how long such food will be safe for customers to eat; • keep new wrapping and packaging clean, and store it where it can’t be contaminated. Freezer maintenance Freezers need to ensure that frozen food can be kept frozen solid. Excessive icing-up can affect proper door-sealing, requiring more frequent defrosting and making the motor work overtime. Find out what’s causing the problem and remedy it – both to ensure that food stays frozen and to save on your power bills. If your freezer does stop working properly, you can move foods to another freezer and still sell them provided they are still hardfrozen. As temperatures rise it’s also worth sparing a thought for the perennial summer treat: ice cream. Although usually thought of as relatively safe foods, scoop ice creams can become contaminated with harmful bacteria if you don’t follow good hygiene practices. Bacteria can get into ice cream from dirty hands and from ice cream scoops that have not been kept clean. To keep ice cream safe it’s important to remember to: • thoroughly wash and dry hands before serving ice cream; • handle cones using paper sleeves or serviettes; • regularly clean scoops and toppings containers; • rinse ice cream scoops in clean water after serving ice cream and store them hygienically between uses (eg, in a clean box); • never serve ice cream that has been thawed and then refrozen; • keep cones and toppings covered when not in use. More information on these – as well as many other aspects of running a food business – can be found in NZFSA’s Food Control Plan, which is available for free on www.nzfsa.govt.nz.l
Modern Serve overs can make your Serviced Department look fabulous These cabinets were made in McAlpine Hussmann, Tauranga, and customised for the Supermarket Owner’s particular needs. You too can attain this look by simply making contact with McAlpine Hussmann.
Auckland • Hamilton • Tauranga • Wellington • Christchurch • Dunedin • www.mcalpinehussmann.co.nz • Ph 09 526 6800 • Email: Refrig@mcalpine.co.nz McAlpine FMCG1210.indd 1
42
FMCG decEMber 2010
2/12/10 3:42:50 PM
Silver Fern Farms scoops packaging awards The 2010 New Zealand Food Awards were announced recently in Auckland and the “Zespri Product Innovation Award for Food Packaging” was awarded to the Silver Fern Farms Lamb Rump retail pack – part of the company’s lamb and venison retail pack range. Silver Fern Farms’ retail range was launched in November 2009 to respond to a gap in the market for smaller portioned products that could meet the modern needs of an ageing population, smaller families and those seeking healthier lifestyles. Up until then there had been very little packaging innovation in the red meat section of supermarkets in New Zealand. The judges of the 2010 New Zealand Food Awards said: “Functional packaging with barrier properties to ensure freshness of the chilled meat product, a clear panel to show product quality and iconic New Zealand graphics and branding make this package attractive for both local and export markets.” Silver Fern Farms’ marketing and production teams also received a bronze award for graphic design at last month’s Best Design Awards. “Silver Fern Farms’ packaging is designed to deliver the perfect lamb experience,” says marketing manager Sharon Angus. “We have put a lot of work into ensuring that our packaging achieves the right balance between convenience, maintaining the integrity of the product and providing information about how best to cook and serve the product, whilst still allowing consumers to see the lamb and venison within. We’re thrilled to see that effort rewarded.” Silver Fern Farms’ innovative range of premium quality lamb and venison cuts are thermoformed (vacuum packed) for optimum freshness and hygienic storage. This provides a longer shelf life so they can last in a consumer’s fridge for up to 2-3 weeks. “All of the packs also contain a simple recipe, prepping, cooking and serving instructions, as research told us that New Zealand consumers lacked confidence in selecting, preparing and cooking lamb and venison,” said Angus. The awards top off a great year for the Silver Fern Farms brand. Earlier this year, the company’s television campaign was a finalist in the CAANZ Axis awards for creative excellence. “The campaign has really struck a chord with New Zealand consumers. Building a strong consumer brand is a long-term strategy, but it’s very satisfying to achieve recognition for the fact that we’ve made a promising start and that we’re absolutely on the right track,” said Angus. Silver Fern Farms is New Zealand’s leading processor and marketer of lamb, mutton, beef, venison and associated products to more than 60 countries. The company operates 21 processing facilities throughout the country, employing more than 7000 staff in the peak of season. l
decEMber 2010 FMCG
43
g rocer y b us ine ss SPOS Group appoints group general manager SPOS Group, a leading provider of marketing at retail solutions, has created a new position and appointed Stephen De Lorenzo as SPOS Group general manager. David Evans, CEO of SPOS Group, said De Lorenzo’s appointment is part of the growth of the business. “We have more than doubled the number of employees in the past five years and have introduced new companies under the Group umbrella. Stephen’s role will help us consolidate our efforts as well as providing additional resources to work on the business. For example, we will be continuously reviewing growth opportunities such as potential acquisitions globally,” Evans said. De Lorenzo said he is looking forward to providing a central focus to the SPOS Group. “I will be looking after the day-to-day running of all divisions of the SPOS Group in Australia, New Zealand and China. This is a great opportunity to bring the whole business together to work towards a common objective,” he said. De Lorenzo joined SPOS in August 2009 to set up icandy Creative, the SPOS Group company responsible for developing tailor-made point-of-sale displays and creative concepts for brands and retailers.
Prior to this, he held various positions with Coca-Cola, Nestlé, the Artel Group and others. SPOS Group includes three companies: SPOS Retail, which supplies a large range of readymade point-of-sale retail shelving, ticketing and Stephen De Lorenzo merchandising products; icandy Creative, which offers concept development, graphic and industrial design, print production, project management and full production services, and Propel Interactive, which focuses on interactive displays that utilise the latest retail technology products to drive consumer decisions at point-of-sale. SPOS was established in 1981 and has reliably supplied Australian and NZ retailers, brand manufacturers, sales promotion, advertising and print companies with a wide range of services for price ticketing, merchandising and sale promotional activity. l
foodstuffs Wellington rewards top graduates The achievements of employees and their potential as future industry leaders have been celebrated at the Foodstuffs Wellington annual training awards ceremony. “Great people are the key to our success,” said George Sutherland, general manager retail services at the awards, which were held at Duxton Hotel in Wellington on Saturday From left: Butchery Apprentice of the Year Peter Robinson, 20 November. Bakery, Apprentice of the Year Stacey Ross, and Foodstuffs Each year the lower North Island cooperative Management Programme Emerging Leader Jason Davy. of grocery and liquor distributors and retail stores offers three Supreme Awards. awards ceremony recognised the achievements to date of Jason Davy, store manager at Kapiti Pak’nSave was named the inaugural intake of management students. the Foodstuffs Management Programme Emerging Leader. Foodstuffs Wellington chairman Brian Drake, who presented Peter Robinson of Wairoa Write Price was awarded Butchery the prizes, said the calibre of people coming through the Apprentice of the Year; and Stacey Ross of Dannevirke New academy and other industry training courses would enable World became Bakery Apprentice of the Year. Foodstuffs Wellington to continue to be the leader in The organisation has established the Foodstuffs Wellington its field. l Academy to further develop its emerging leaders. The Academy’s Foodstuffs Management Programme for senior See www.fmcg.co.nz for extended awards coverage. levels of management began 18 months ago and this year’s
44
FMCG decEMber 2010
The Wattie’s team receive the Workfit Healthy Workplace Award.
Healthy workplace gets high praise The President of HJ Heinz, Bill Johnson, personally congratulated the Wattie’s Workfit Team on receiving the Workfit Healthy Workplace Award at the recent Hawke’s Bay Regional Chamber of Commerce Westpac Business Awards. The Wattie’s Workfit programme has included nutritional lunch options such as sushi, smoking cessation and physical activity programmes where Wattie’s participation in Hawke’s Bay sport events is continuing to increase. Johnson said: “This regional business award is quite an honour for your team, and the complex scope of your programme is deserving of this recognition. “On behalf of the entire senior management team, I want to thank all of you for your hard work, dedication, and commitment to the health and success of Heinz and our people. It is an outstanding achievement to implement a successful workplace health and wellbeing programme across four separate units, numerous work sites and employee shift patterns.” Johnson said he understood the programme at Wattie’s was inspired by the company’s global sustainability goals and initiatives. “Your efforts will make a sustainable difference in the health of your colleagues and the success and productivity of the business.” l
! 175g serve for an any time of day meal/snack 2 variants ( meat/ vegetarian) wider customer appeal! Freeze-thaw stable and extended hot-holding.
decEMber 2010 FMCG
45
New Media:
Why our industry must shut up and listen Speakers at the recent Food and Grocery Council Conference laid down a challenge to food producers. Keith Stewart was there.
Katherine Rich, NZFGC chief executive officer.
46
FMCG decEMber 2010
T
he venue for this year’s New Zealand Food and Grocery Council annual conference – the plush Four Seasons Hotel in downtown Sydney – provided at least one reason for delegates to anticipate an old-fashioned event full of self indulgence and plenty of networking opportunities. However, under the keen guidance of NZFGC chief executive officer Katherine Rich, the agenda had plenty of substance, and a number of well-considered presentations had members thinking about some of the key issues currently confronting their industry and their specific businesses. “Most speakers were either very good or excellent and their messages were important,” said Rich. “It was a very positive conference from my perspective.” If there was one message that came through loud and clear, and was certainly picked up by delegates spoken to by FMCG during the conference, it was the changing face of communication. While a number of speakers highlighted pressure currently being applied to the food sector by all media, and consequently becoming a key shaper of consumer behaviour, their advice was that the old-fashioned methods of coping with media attention have changed in the modern environment, and that every food producer must confront this new immediacy of communication or be prepared to find their market under serious threat from
active competitors and negative interest groups. Minister of Commerce, and of Justice the Hon Simon Power set the mood, with the first meaty delivery of the conference on morning one, by addressing the current frontline issue of liquor legislation and the likely changes under his watch. Not that he had much constructive to add to the long running media mêlée on the issue, other than to confirm an end to corner shops holding liquor licences. He told his audience what they wanted to hear about reducing compliance costs and set the scene for a conference which had addressing the audience as its strong point. Another highlight, of special interest to those food producers looking at Australian market expansion, was the talk by Andrew Reitzer, CEO of Metcash, the hugely successful ‘third man’ of Australia’s grocery scene. His focus on the key aspects of turning a failing company into a successful one created an impressive opening stand on day one. Stars in the line-up that followed included – recently-departed Radio New Zealand national broadcaster Sean Plunket, who was also conference MC, Saatchi & Saatchi worldwide ceo Kevin Roberts, and ACNielsen Europe’s retailer services director JeanJacques Vandenheede. Finally, there was the indulgent finale, a rich and fascinating presentation by
featu re
New Ways
Kevin Roberts.
Chinese dancer Li Cunxin, whose remarkable story of his struggle through Maoist China and on to the US was published as Mao’s Last Dancer and has been made into a feature film.The conference hall was full, most mesmerised by the story and its teller. If the NZFGC keeps holding conferences like this one, getting in is going to be the toughest part of attending.
Lift your media game Two strong speakers were the information highlight of the NZFGC conference, both declaring that the media has changed dramatically, and that food has become central to media activity and consequently media will play an increasingly influential role in the success or failure of food producers. Journalist and broadcaster Sean Plunket, until recently purported to be the most testing interviewer in New Zealand, led off the focus on media on the first afternoon of the conference, by telling delegates that food was a natural target
Sean Plunket.
for media assault and they had better get used to it. “Fear is the single greatest motivator of human behaviour in the 21st century, and food and grocery products are very scary,” he said. Quantifying the things most Australians and, by inference, most New Zealanders are scared of, Plunket listed the following: “Number one is the economy, which 44% of the population rate as the scariest, followed by global warming (37%), mental health (25%), cancer (24%), dying (20%), poverty (19%) and pollution. “As everybody shops at supermarkets, and everybody worries, food and grocery products are very scary,” he added. “Consumers are worried about being able to afford them, whether they make us or our kids sick, whether people making them are kept in poverty by those who produce food, and whether they are stuffing the planet.” Having neatly summarised the
Jean-Jacques Vandenheede.
reason media indulge in the headlines they do, Plunket then proceeded to offer more fear by pointing out that now more than ever, the media is less reasonable, and more difficult to predict. He admitted he has no idea what will make the headlines next, except that it will be something that arouses these fears, so that food is more likely than any other commercial good to attract attention. New media is the reason for this uncertainty, he said, and the shifting line between the ‘mainstream media’ and internet has reached a point where the mainstream is increasingly being influenced by the internet so that the whole is merging into “... one, new media”. Both Plunket and Roberts made the point that all media needs to be worked at all times, from the latest social media activities such as Twitter and Facebook, to the making and posting of blogs, video, and regular product information and updates. Roberts and Plunket called for active decEMber 2010 FMCG
47
participation in the media, from responding quickly to issues that may be thrown into public notice by activism or other forms of citizen journalism, to maintaining contact with the feelings of key consumers. Roberts also made much of what he called “priceless value”, the value of a good that has no price because it is measured in emotional terms. Fair trade, free farm and organic, offer such ‘priceless value’, he said.These are values that he suggested all producers must look for in their products, and then share with their customers. Both speakers concluded by throwing the gauntlet down to producers to transform their communication skills with consumers, to stop being conservative in their marketing fforts. Plunket made the point that for many New Zealand branches of international corporations this might mean being particularly innovative as they operate at the end
Know thyself Another two speakers who generated high interest from delegates were Andrew Reitzer, ceo of Metcash, and Jean-Jacques Vandenheede, a senior analyst with ACNielsen, Europe. Their strength was not the elusive maybe world of marketing, but the real world of performance and opportunities that are actually taken. Metcash is a Top 100 ASX company that is a serious competitor to the two big supermarket chains in Australia. In spite of the pressure these two put on grocery in Australia, Metcash under Reitzer has turned a A$240 million loss into an A$11-billion-turnover company with profits of A$240 million and a
viable third force in the Aussie market. Reitzer’s theme was simply, “Why we continue to win, and why we continue to make inroads,” a powerful subject given his performance in recent years, but which he put down to one essential ingredient – knowledge of his business, his market and his competition. Nothing can compensate for understanding the grocery environment in which business operates, he asserted, and his position was supported by Vandenheede. As if delivering evidence in support of Metcash’s success with IGA in Australia, Nielsen data showed that it is the smallest supermarkets that are growing fastest in Europe, and that large store market share has been relatively static for 30 years, in spite of the huge increase in the number of stores. There were a number of other points where both speakers could almost have been delivering the same views. Both talked down the value of
SUBSCRIBE NOW
&
YES!
of a long chain of command. “Social and cultural sustainability is vital,” declared Roberts in a final flourish of global bravura. “The role of business is to make the world a better place for everyone.”
I’d like to order an annual subscription to FMCG magazine (11 issues) afor just $90.00 incl GST including the free twice-weekly foodnews email newsletter.
Title: Mrs, Ms, Mr
Name:
Company name: Address:
Postcode:
Phone: I am paying by
Email:
°ÊCheque (enclosed). Please make cheque payable to Mediaweb Limited
°ÊMastercard
Card No:
°ÊTick here if you require a tax invoice or receipt
Name as it appears on the card:
Expiry Date:
Signature: Used on a white background
All prices include GST GST No: 102-417-023
Type of business:
SUBSCRIBE ONLINE www.fmcg.co.nz/subscribe (including international prices)
Used on a black background
48
°ÊVisa
FMCG decEMber 2010
Mail: Mediaweb, PO Box 5544, Wellesley Street, Auckland, 1141, New Zealand. Email: subs@mediaweb.co.nz
From time to time we run subscriber-only offers related to other magazine titles we publish. If you do not wish to receive these, please tick. If you do not wish to receive offers from third parties, please tick.
featu re own labels, with Vandenheede’s figures showing that the growth of own labels in Europe and North America was minute, just a 0.5% share overall, and unlikely, in his opinion, to ever rise above 30%. Reitzer said Metcash’s approach in recognising the relative scale of the own brand market is to respond by becoming “brand champions”. “We have no intention of taking our house brands to high levels,” he said. “We prefer to be champions of brands that customers recognise and trust: that is better for our business, long term.” The other point where the two speakers met almost word for word was in their opinions on fresh produce, which both consider the critical sector in securing market share
from competitors. “If there is a grocery war going on,” Reitzer said, “it will be won in fresh.” He claimed two fundamental reasons why fresh produce was a key to his business strategy – trust and food safety. Not only were these characteristics of the sector appealing to consumers, they gave retailers opportunities to assert their benefits and individuality, he claimed. Reitzer also accentuated retailers’ ability to act local, which he considers another important feature of the IGA Australia success. “We have put together a group of independents who think like a chain, but act locally,” he said, before concluding, “Nobody gives you a prize for being cheaper than Woolworths.”
Vandenheede delivered data that affirmed Rietzer’s fresh opinions, knowledge which he said has caused the hypermarket chain Carrefours to bring back the proximity of fresh produce into the centre of its planned store redesign for Europe. In effect the company was bringing farmers markets to a central point in the stores, and increasing the square footage dedicated to fresh produce to improve their consumer appeal. Concurring with Rietzer in his rejection of price-cutting promotions as a tool for improving sales, rather than concentrating on marketing trust and added value,Vandenheede said,“The culture of low price is dominant in New Zealand. There needs to be greater effort to improve the culture of value.”
Katherine Rich, NZFGC CEO, talks to FMCG’s Keith Stewart Keith Stewart: The annual conference was a revelation to me. There was a hard core of serious speakers who were not afraid to address real issues. There was a real feeling of getting on with business amongst the delegates I spoke to; is this your real role at NZFGC? Katherine Rich: “I maintain that this country’s future and history is in food and grocery. We have the chance to take this industry a long way, both locally and internationally, and conferences like this must give members the chance to consider the big issues facing all of us. But that is not my only focus. The challenge ultimately is for every single member to get value out of their membership.” KS: Other than the conference, what do you see as your day-to-day role? KR: “Number one, I am the sector advocate. I am expressly here to be the voice of my members. That is the focus when I get up every morning. “Advocacy is sometimes misunderstood, but it is my job to make sure their interests are looked after, that the profile of the industry is raised, and that we are considered a positive influence on commerce in the sector.” KS: How do you achieve that without seeming like just another combatant in the war over food values?
KR: “Working together is always better than one side beating up on the other. There are all kinds of initiatives that are far more acceptable to us and far more positive in effecting a solution. “Take the folic acid issue. The baking industry is a sub-set of the sector, but that did not minimise our role and we were proactive in seeking a solution there, rather than have compulsory fortification imposed on members. We continue to work on the issue to ensure that both sides of that debate are happy with the outcome.” KS: Do your contacts with government help your position? KR: “Probably. But we never go to government with just a whinge, we go with a complete package that includes workable solutions to problems we perceive. I have never met an official who will reject a neatly presented, well considered pack of reforms if they look likely to be effective.” KS: It is a large sector, covering numerous businesses from international corporations, to small mum and dad operations. How do you maintain an equilibrium on points of conflict? KR: “Since I have been involved there hasn’t been any conflict. The various sectors have various needs but I cannot think of a single conflict we have had to manage.”
decEMber 2010 FMCG
49
cate go r y c h e c k
The Convenience of
Cards
Flexible shoppers are plumping for the growing selection of gift and phone cards now available in supermarkets, writes Ruth Le Pla. GIFT CARDS Once considered a thoughtless gift, gift cards are now a desirable item, allowing the recipient to choose exactly what they want or need. So says Ezi-Pay marketing manager Petra Davidson. The Ezi-Pay selection of gift cards ranges from iconic New Zealand retailers such as The Warehouse, Mitre 10, Paper Plus and Liquorland, to Noel Leeming, Marbecks, Hunting & Fishing, and dozens more. Its music gift cards include the world’s largest selling gift card iTunes and New Zealand’s leading online music store digiRAMA. There’s plenty more to come. Davidson says Ezi-Pay is launching an all-new gaming cards category in December in Foodstuffs supermarkets. The new range will include the Ultimate Game Card, IMVU and Moshi Monsters. “Gaming is an exciting new category rolling out just in time to capitalise on the Christmas rush,” says Davidson. “These cards are prepaid currency for the phenomenon that is online gaming and allow users to play without having to use their credit card online. “The Ultimate Game card covers games for all interests and all ages. It’s the easy way to play over 1000 games including Facebook and MySpace games, RuneScape (the world’s most popular and longest-running multi50
FMCG decEMber 2010
player game), Pet Society and hundreds more. “IMVU is a popular virtual reality game while Moshi Monsters allows players to adopt their own pet monster. These cards form the beginning of Ezi-Pay’s gaming card range: 2011 will see more brands available.” Once considered the domain of teenagers, computer gaming now spans all ages. Davidson says that, according to national research prepared by Bond University for the Interactive Games and Entertainment Association in 2010, 88.5% of New Zealand households now have a device for playing computer games and the average age of a computer game player in New Zealand is 33 years. Ezi-Pay’s new gaming range follows hard on the heels of the launch of its Movie Gift Card, which can be redeemed at a variety of cinemas throughout the country and the Restaurant Gift Card, which is expected to launch in December 2010. This card can be redeemed in hundreds of restaurants, bars and cafes. Davidson says the local gift card retail category continues to grow year-on-year, in line with international trends. “This growth is supported by the continued addition of quality local brands as well as international brands such as iTunes and gaming cards.” For its part, expect to see Ezi-Pay next year launch a Farmers’ gift card
in supermarkets and several more new gaming cards. “Internationally, gift cards now stand out as a leading contributor to sales and profit within supermarkets,” says Davidson. “In New Zealand, gift cards are an emerging retail category showing all the signs of following international trends by doubling sales year-on-year. “For the past several years, the USA’s National Retail Association survey has found gift cards to be the most requested gift for Christmas. “We believe this illustrates an important shift in the way gift cards are regarded.”
PHONE CARDS Ezi-Pay is also expanding its offerings in the phone cards market. It already has mobile top-ups from Vodafone, Telecom and 2degrees in supermarkets. It also provides cards from the leading phone card suppliers Compass, Telecom, TelstraClear and CardCall through similar outlets. In the next few months, says marketing manager Petra Davidson, Digicel top-ups – which are already available through convenience stores – will become available through supermarkets as well. Digicel is one of the largest mobile phone operators in the Pacific region. Top-ups purchased in New Zealand are used to top up Digicel prepaid mobile phone accounts in Samoa,
g i f t & cal li ng ca rds Tonga, Fiji, Vanuatu, Papua New Guinea and Nauru. Top-ups are credited in the local currency, at the day’s best exchange rate without deducting any fees. Davidson says Digicel offers “very keen” calling rates “so the average top-up value delivers hours’ worth of calling to the recipient, allowing them to keep in touch with friends and family in New Zealand as well as within the islands”. Ezi-Pay is also expanding its mobile top-up offering through a deal with ezetop, which offers direct connections to over 140 international mobile operators across Asia Pacific, Africa, the Caribbean, Central/Latin America and Eastern Europe. Davidson says people living in New Zealand will be able to purchase an ezetop top-up voucher and send prepaid mobile credit to friends and family throughout the world. “As with Digicel, those who purchase a voucher can transfer the value of the top-up online. They select the country and the mobile operator to transfer credit to, enter the phone number to recharge and enter the prepaid voucher number. The value is transferred in local currency.” Overall, says Davidson, mobile top-up continues to be the prepaid category mainstay while phone cards continue to contribute well to retailers’ earnings. “Phone cards are an ideal budgeting
NEW
$10
The easiest way to pay for popular online games
NEW
and savings tool in a tight economy and sales remain strong.” Over at TelstraClear, business manager – prepaid solutions Prash Mohan identifies two key market trends in the prepaid phone market. TelstraClear’s range of prepaid phone cards includes TalkPlus Global, Pacific Talk,Talk Talk, Cheap Chat and ePhone. Mohan says the market has shifted significantly since TelstraClear first launched its phone cards in New Zealand. “The first trend is the shift towards mobile calling products,” he says. “There are a number of new mobile calling card players in the market and with the increase in mobile phone usage, it is only natural that consumers are shifting to calling products they can use from their mobile phone. Whilst it is convenient, call quality does vary from time to time. “With TelstraClear phone cards, you continue to receive quality calls, even when used from your mobile phone. Some of our customers use their free local mobile minutes in conjunction with their TelstraClear phone cards. “That’s not to say people aren’t calling from their landlines. It’s still cheap and easy to use a phone card from a landline and the calling rates are very competitive.” The second trend is the number of smaller calling card companies releasing phone cards with aggressivelypriced calling rates into the market.
THE BREAKDOWN Current MAT to 7 November 2010 Total gift cards: $13.043m Value % Chg vs YA 387 Total international calling cards: $1.999m Value % Chg vs YA -13 * ACNielsen New Zealand ScanTrack (Databank)
“The market is saturated with phone cards promoting super-low calling rates, in particular targeting the Asian, Indian and Pacific Island communities. Consumers may be misled into thinking that they can get outrageously huge calling minutes, when the costs may be recouped elsewhere, for example through daily surcharges, rounding the call to the nearest five cents and three or five minute rounding. “Consumers should be wary of these types of cards and recognise that if a rate sounds too good to be true, then it probably is. Hidden in the terms and conditions you will often find huge connection fees, disconnection fees, surcharges, maintenance fees and other hidden charges. Remember, low calling rates do not guarantee a cheap call.”
The hottest properties in NZ prepaid NEW
Take to checkout to purchase voucher
Play 1000 Games!
NOW GET
FREE
S*
Games on Facebook Games on MySpace™ Rumble Fighter ® RuneScap e Evony ijji G Coin DarkOrbit Pet Society Grand Chase Conquer Online Maple Story And hundreds more!
NEW
POPUL
AR
NEW
NEW
BONUS ITEM
www.Ult imateGa meCard.
POPULAR
com
www.ezipay.co.nz
0800 960 000
decEMber 2010 FMCG
51
The rise of
me-tailing
– what consumers want Australia’s economic and political landscape is sweeping a range of changes into the convenience sector, writes Ruth Le Pla. Delegates at a recent conference in Australia’s Gold Coast chewed over what it may all mean for business. Here’s some good news. A bunch of converging consumer trends may prove beneficial for convenience stores. That’s according to Kate Carnell, CEO of the Australian Food and Grocery Council (AFGC). Carnell’s comments came amidst a fact-filled presentation outlining the changing positioning of Australia’s convenience stores in the light of increasing concerns around environmental, health and social issues. “As power inexorably moves from seller to buyer, retailing will morph into ‘me-tailing’,” she predicted. “Aussies will pay more for better, personalised service, for healthy, green products and for anything that saves time. “Convenience stores are perfectly positioned to benefit from these consumer trends.” Carnell was one of a series of speakers at the two-day 2010 Convenience Leaders Summit held recently on Queensland’s Gold Coast. Organised by the Australian Association of Convenience Stores (AACS) in partnership with its New Zealand sister organisation NZACS, the event aimed to encourage open discussion on industry-related issues. A raft of speakers delved into topics covering the significance of Australia’s new political paradigm for the
52
FMCG February 2010
food and grocery sector, increased competition, blurring channels and leadership lessons from the military. For NZACS chairman Roger Bull, the summit provided a series of useful insights into how the economic situation is affecting Australian convenience retail. He also valued new perspectives on the blurring between channels, “which we don’t experience in New Zealand”. For Bull, highlights also included bettering his understanding of the differences between New Zealand, Australian and American convenience retail industry models, networking opportunities with other retailers and suppliers, and a series of organised visits to stores. Consumer spending patterns change From Carnell’s perspective, convenience is gaining additional currency in a climate in which the global financial crisis has produced a fundamental change in consumer spending patterns. “Frugality and restraint have become the new mantra,” she said. “Consumers are time poor. Many households have two incomes. People are working longer hours [and so] convenience is important: both in terms of new
products and availability of product.” There is still work to be done on matching product labelling to consumer demands. Carnell noted, for example, that consumers are increasingly conscious of environmental concerns but there were questions around their willingness to pay for environmentally-sound product. The AFGC, she said, had decided to find out, taking to the streets with a ‘green shopper’ survey and conducting 1000 intercept interviews outside Woolworths stores in Toorak, Dandenong, Marrickville and Plumpton. Respondents were interviewed before being asked to dig in their trolleys for ‘green’ products. “The aim was to try to examine the gap between intent and behaviour.” The results, says Carnell, were ‘interesting’. While 93% of people surveyed said they thought a retailer’s effort to reduce their environmental impact was important, only 13% of people actually ‘bought green’. When asked what was important to them, shoppers gave the lowest scores to low carbon, fair trade or organic product attributes, while top marks went to products that were recyclable, locally-grown or produced, or biodegradable. “Consumers have told us they want credible environmental labelling so retailers and AFGC are working together to deliver a workable solution,” said Carnell. Such concerns come coupled with a growing public health challenge for the food industry as the number of dietrelated, chronic preventable diseases continues to rise. Carnell called on industry members to take a proactive response to the preventative health agenda and pointed out that initiatives to date centre around reformulation, better labelling, appropriate marketing
-- especially to children, healthy workplaces, and joint messaging with government and other stakeholders. “Consumers want food that is healthy, sustainable, good value and convenient,” she said. “And they want information.” Kosta Conomos, executive director of retailer services in Nielsen’s Pacific division, echoed some of Carnell’s thoughts on the changing landscape for convenience store operators, saying that what constitutes convenience is continually being re-stated. “Australian retail is at its most competitive for more than a decade, driven by factors including a resurgent Coles, the growth of ALDI and changing ethnographies,” he said. “Customer-centricity is the new mantra and retailers are restructuring business units to cope. Current retailer strategies have had mixed results. There is increasing uncertainty as to how to differentiate the offer while ‘tit for tat’ marketing has amplified.” Blurring of channels, he noted, is an increasing reality. Conomos predicted that the next 12 months will see even more intensive activity as ALDI ramps up expansion, Coles opens more than 100 new or refurbished stores, and price discounting intensifies. Summarising the year so far in his presentation ‘State of play 2010’, he said, “we may have survived the worst global financial crisis (GFC) but the last 12 months were a tough period for convenience. “Pre-GFC, many feared fuel prices
would climb higher and impact on the spend in c-store. Now, concerns have subsided on the fuel prices: potentially offset by bigger concerns over utility bills and interest rates [and people are] cautious on spending in c-store.” Conomos said the convenience channel is struggling to achieve positive growth and substantial discounting in supermarkets is also having an impact. “Growth in discounters and discounting is changing the shopper repertoire and [the convenience sector] increasingly needs to look outside current staples to drive growth.” Finally, Brigadier Mark Bornholt shared his thoughts with summit delegates on what business can learn from the military about leadership. Bornholt, a former commandant of the Royal Military College of Australia, was drawing on his experiences in both peace-keeping and war-time operations in East Timor, Egypt, Iraq and Baghdad. The keys to good leadership centre around four tenets, he said: that people matter; the significance of good communication; the need to lead by example; and the importance of behaving ethically. “Have a mission and priorities and articulate them continually,” he advised in his summary. “Consult up, across and below in your organisation. People matter – so manage them. Understand finance. Seek factual advice through research and [finally] understand that contractors need to make money.” l decEMber 2010 FMCG
53
Trina Snow, executive director, Nargon.
2010: A trying year Take pride in results. By trina snow
New Zealand has been buffeted by the worst global economic conditions since the Great Depression but we have battled through the worst of the difficulties, certainly better than most other countries. It has been a tough, tight year in the retail grocery sector but we should all take a lot of pride in how we coped with the myriad of changes, challenges and opportunities thrown up during 2010. As we move towards the holiday season, it is traditional to look back at the previous year and have a glance forward to the issues that will dominate 2011. Tax – Stores seemed to cope with the GST increase, with the transition reported as relatively smooth. However, the hike to 15% has put pressure on price points and margins. There are also continuing political battles to exempt certain products from GST entirely. Personal tax cuts are putting more money in people’s pockets but the full impact of this on sales is not yet clear. Owners will welcome the company tax reductions in 2011. Employment Law – The Government has introduced a substantial package of employment law reform which is steadily passing through Parliament. Nargon welcomes the changes which will sort out relevant daily pay, extend 90-day trial periods to larger companies, clarify the laws around public holidays and clean up other anomalies in the current law. The Youth Minimum Wage Bill was disappointingly voted down without the public even having a say. Alcohol – The Government’s major liquor reform package has passed its first reading in Parliament and will now be considered by a Select Committee. It will give communities more power over licences, set
54
FMCG decEMber 2010
maximum licence hours, exclude dairies and convenience stores from holding off-licences, raise the offlicence drinking age to 20 and increase the penalties for offences. The bill passed 114 to 3 which indicates it should become law although the drinking age will be the subject of a conscience vote. None of the provisions will come into force until after the Rugby World Cup next year. The main political criticism is that the bill does not go far enough with Labour MP Lianne Dalziel saying it missed the opportunity to crack down on supermarkets selling dirt-cheap alcohol. Tobacco – In a surprise move, Cabinet appears to have lent its support to the Maori Affairs Select Committee report into tobacco. The report recommends a range of strict measures aimed at halving smoking by 2015 and turning New Zealand into a smoke-free nation by 2025. Those changes include banning tobacco displays, restricting the display of tobacco brand names and enabling instant fines for people selling to underage purchasers. The bill is expected to be introduced this year and come into force in 2011. Health Minister Tony Ryall had previously said the Government was not intending to ban tobacco displays. Speculation in Wellington is that this change of mind is designed to cement the Government’s long-term relationship with the Maori Party, as well as reducing smoking in New Zealand. Plastic bags – The industry-led voluntary approach appears to be working with the number of plastic bags used significantly down. Reusable bags are an increasingly common sight though there is new research suggesting there may be health issues if those bags are not cleaned properly after use. Sales – Supermarket and grocery sales were up overall this year: one of the very few retail sectors to do even moderately well. Food prices actually increased just 1.3%, despite the headlines in the media. Our sector can be proud of its results during a trying year. Best wishes from Nargon for 2011.
C-stores the place for NRT New research from the University of Auckland has suggested small retailers could sell treatments to help smokers quit the habit. The study by the University of Auckland’s Clinical Trials Research Unit found retailers back the promotion of nicotine replacement therapy (NRT) in shops and dairies. Lead author Dr Jonathan Williman says grocery stores could be an untapped way of distributing quit smoking products such as patches and gum and information about quit smoking services. “Retailers told us grocery stores should have a role in the promotion of quit smoking products. However they indicated customer demand needs to increase to make NRT sales profitable. Many people may not be aware that grocery stores can legally sell NRT,” said Williman. Two-thirds of retailers supported indirect promotional activities about quitting smoking, such as displaying posters, giving out free samples of NRT or having educational pamphlets for customers, but many were reluctant to offer customers verbal quitting advice. Several retailers expressed interest in taking an online course to become a registered Quitcard provider.
Quitcard providers can offer advice and access to government subsidised NRT products, including patches, gum and lozenges. “It’s pleasing to see retailers are positive about promoting quit smoking products and services in their stores. Small independent grocery shops are keen to serve their local communities and this is another way to do this,” said ASH director Ben Youdan. “People visit grocery stores every day to buy cigarettes, yet four in every five smokers wished they’d never started smoking. Grocery stores could help people choose their health over cigarettes by hiding tobacco from view and instead promote quit smoking products and services,” said Williman. The study is believed to be the first in NZ to investigate the potential of using non-medical retailers to promote smoking cessation (quitting) products and services. l
N nd O O S en a
G hick Curry N I OM ter C ken
C w Buti Chic Ne Tha
Pie on the Fly® is the premium 200g Kiwi travel pie, offering consumers a unique and unrivalled combination of quality, taste and convenience. The introductory range of 6 great flavours are each specially formulated to provide a meaty, no-spill filling and baked in a golden pastry. The tamper-evident package with pull tab system maximises shelf presence and facilitates easy handling and no-mess consumption.
Email: enquiries@packagingbrands.net Phone: (09) 4839290
www.pieonthefly.com
decEMber 2010 FMCG
55
Pie on the Fly is a registered trademark of Packaging Brands (UK) Ltd. NZ Reg Des No 413241
Prepare for the holiday cash flow freeze
It doesn’t seem like a year has nearly passed since we were hearing how the consumer ‘Christmas spend’ was going to save businesses from the recession. Back then I was telling a cautionary tale as this ‘spend’ was not going to last and I am afraid to report that I was probably right. Even though things seem a little rosier, we are still seeing a lot of businesses hurting with most pressure being felt on cash flow which is being closely monitored by business owners and banks. For all businesses, Christmas is a time for careful planning as work rosters need to be juggled, sufficient stock (and the right stock) needs to be carried to ensure you have a good Christmas turnover, staff Christmas functions need organising … cash flow remains king. The earlier you start to plan, the better prepared you will be. Break each point down and put your mind to each one individually – satisfaction will be gained from ticking each one off. What you should be considering:
56
FMCG decEMber 2010
• Staff levels. Ensure you have sufficient staff to carry you through your busy days, hours or weeks. Take care when working around statutory holidays and seek advice if you are unsure of your obligations when paying holidays. • Stock levels. Are you carrying the right stock for Christmas? Any stock that has sat for a long period will continue to do so if you don’t discount for a sale or send it back to the supplier for a credit. Also consider whether you can get longer payment terms from your supplier; ensuring you do not create a cash crisis post-Christmas, when business may not be so busy. And, check whether you are carrying enough stock. Again, be careful as stock is simply cash that has yet to get to your bank and carrying too much does have an impact on your cash flow. Arranging to send unsold items back to the supplier if they do not sell can be a good backstop. • Cash is king. Get paid up front or offer a lay-by service. Chase slow paying debtors and if you don’t get paid by Christmas, be prepared to wait for a further month or two in the New Year. Also be wary that pressure is put on cash flow by some suppliers shortening their credit terms eg, seven days and holiday pay needing to be paid out. • Christmas function costs. Asking staff to organise their own Christmas function can be a winner for all concerned. We have let our staff take the job on this year and it can be surprising for them how much these functions can cost. A good approach is to give them a budget and see what they can come up with. • Staff/Customer gifts. How often do you hear that it is “the thought that counts”? A personalised gift for that particular staff member or customer shows that you have given thought to them individually and this will mean more to them than the value of the gift. Don’t forget that GST and the second instalment of 2011 provisional tax are due on 15th January for March balance date taxpayers. The PAYE for December is then due soon after on the 20th January. I reiterate, that like Christmas shopping, the earlier you start on these things, the easier it is and the better the outcome. Admittedly, this may be easier said than done, so if you need help, get in touch with your bank, accountant or suppliers now and start planning. l Stephen Graham is a partner with BDO Rotorua, a member of the BDO New Zealand network of independent Chartered Accounting and Business Advisory member firms. www.bdo.co.nz
RESOURCE DIRECTORY
Arrow Refrigeration Limited 163 Archers Road, Glenfield PO Box 101162 NSMC, Auckland Ian Gregory, Sales Manager • Ph: 09 444 1661 • Fax: 09 444 1961 • Email: sales@arrowfreeze.co.nz • Website: www.arrowrefrigeration.co.nz
CATEGORY: Y Y:
Framec, Koxka, Orford, B Bonnett N Nevé é Festive, Skope, McAlpine
BOOST YOUR BUSINESS WITH: Rental Chicken systems available Save on capital expenses Instant Results! Great Profits! Call now for a no obligation evaluation Jayen Food Concepts Ltd Freephone 0800 62 22 97 Email jayen@clear.net.nz Website www.toptastechicken.co.nz
EE10-034-FMCG-94x69-NZ-P.indd 1
15/2/10 12:42:31 PM
Capture your share of the market –
advertise HERE in C-Store’s
RESOURCE DIRECTORY.
To find out more about ad packages and rates contact: • Peter Corcoran on 09-817 4367 email peterc@mediaweb.co.nz • Ashley Kramer on 021-232 9401 email admanager@fmcg.co.nz
decEMber 2010 FMCG
57
the business of liquor reselling 58
FMCG February 2010
Bubble Keith Stewart contemplates sparkling wines. Extra pungency has been given to this season’s inevitable sparkling wine war, a perennial feature of the retail liquor trade, with the sale of Lindauer and a handful of other leading brands to Lion Nathan by Pernod Ricard as it ‘rationalises’ its New Zealand wine investments. Suddenly there is more than one serious player out there in this important retail sector. The first sign of the new level of competition the sale represents is the sudden drop in promotion retail prices of Deutz Marlborough Cuvée to below $20, a wine that was once touted as New Zealand’s leading challenger to French Champagne. That challenge has subsided after years of marketing Deutz Marlborough on price and the subsequent compromising of the brand’s credibility. Montana, and latterly Pernod Ricard, has held a dominant position in New Zealand’s sparkling wine business due to its aggregation of sparkling wine brands following Montana’s acquisition of Corbans. That particular company never really used its position to develop the sparkling market for Lindauer beyond its current role as a grocery and general liquor trade loss leader. “Sparkling wine is incredibly important to grocery at this time of the year,” says liquor industry
consultant Dave Batten, who was responsible for the initial strength of Veuve Clicquot in this market. “Supermarkets realise the value of the brands to them, and most wine producers are prepared to invest to give them profile at this time of the year.” The release of some new Brancott Estate sparkling brands shows that Pernod Ricard is intent on injecting some tension into the new status quo, and it will not be until well into 2011 before Lion Nathan begins to engage its portfolio of local bubbly brands to reveal the degree to which it will meet Pernod Ricard’s challenge. A spokesperson from Lion Nathan told BWS in November that they would not be in a position to comment on the sector before an appointment had been made to the position of brand manager for Lindauer. Lion’s strength is that it got its additional sparkling wine brands for a bargain basement price, as Pernod Ricard seemed desperate to quit a goodly chunk of New Zealand wine at whatever the cost. Already owning the highly respected methode traditionelles, Daniel le Brun and Australian’s Croser, gives Lion a level of gravitas in the local market which is embellished by the Nicolas Feuillatte and Duval-Leroy
battles Champagne brands to which it holds agency rights. The French might actually become a more active presence this year, if not in champagne brands, but in the cheaper methode traditionelle bubblies from lesser known regions. “We have very advantageous pricing in this market because of the high value of the New Zealand dollar,” says Batten. “So there are opportunities for non-champagne wines from Europe to make an impact this year, especially if Lindauer do not do their usual market hit.” Lion may have long-term difficulties trying to rehabilitate Lindauer into a profitable brand in a market where its image has been seriously undermined by persistent cut-price offers from grocery. Lion’s strategy next year will be one that the trade will watch with intense interest, if only to pick the winners so that support of them will be extra profitable in the long term. “If it turns into a price war retailers and grocery could get some improved margins on sparkling wines traders, which should make most of them happy,” says Batten. With its wine administration in this part of the world shifted to Australia, Pernod Ricard can be expected to put some grocery energy into Jacobs Creek, although with Brancott Estate the official wine brand for the 2011 Rugby World Cup this may be the focus of Pernod Ricard promotional activities. New Zealanders consume around
1.6 litres of sparkling wine per capita annually, both imported and domestically produced, and rising. This is the equivalent of some 710,000 cases of 750ml bottles, worth over $68 million, so it is a market sector not to be ignored, especially as it continues to grow and is projected to do so significantly next year if the Rugby World Cup is successful. With many new participants in the marketplace, the situation in 2010/11 is especially volatile. “One of the big questions will be over the impact all these new sparkling savvies will have on the market. There are a lot more brands in there after a slice of the action,” says Batten. Louis Vuitton Moët Hennessey (LVMH) has already made its pitch, as usual through PR channels by spinning a story to media that there is a Champagne war going on in the pre-Christmas rush. The published stories in the big dailies and on various radio networks highlighted the sharp pricing of two brands only, Moët et Chandon and Veuve Clicquot, both from the LVMH stable. As yet, the battle has not been joined in grocery by any of the other big champagne houses such as Pol Roger, Bollinger or Taittinger. With Champagne more like a family squabble than a real war, the attention will move to New Zealand’s local products, and to the fighting brands Australia can provide for
some extra spice, as well as some unexpected Europeans. Both Italian and Spanish brands could become factors as well as French. On the on-licence front, Lion’s strategy could be to use its extensive beer/wine list leveraging to expand Lindauer’s cafe presence, and perhaps work the price back up the scale a little. We could also be in for a period of tough negotiating over exclusive Lion rights to sparkling wine sections of lists. Whatever skirmishing we see over the coming months, it is certain to make sparkling wine trading one of the more interesting aspects of 2011. l
decEMber 2010 FMCG
59
No.1 Family Estate Patience and persistence are essential for making great wine. Ruth Le Pla talks to Adele Le Brun.
Adele Le Brun and Daniel Le Brun with their children Remy and Virginie Le Brun.
What are some of the major changes that you have seen in the New Zealand methode champenoise marketplace over the years? When Daniel [Le Brun] arrived in Marlborough back in 1980, he had a dream to specialise in methode traditionelle and he pioneered the process in the region. In the ’80s, and even into the early ’90s, there were not many competing brands in the market. We had to educate people about New Zealand methode, as previously all that was available commercially were unsophisticated carbonated wines made from ‘non champagne’ varieties. We had to explain how methode is produced – exactly as Champagne is produced in France – and that carbonated wines are just ‘soda stream’ products. It took years to get the message across. Now the number of brands has increased hugely and there are many dedicated wineries out there spending a lot of time, money and effort on producing fine-quality methodes traditionelles. Sadly, the worst change has been in the past few years. More and more non-methode traditionelle product has emerged. Poor information on the
60
FMCG decEMber 2010
label, or flashy packaging and labelling, makes it appear to be methode. Sometimes what is not said on the label is the culprit. I believe we should introduce labelling specifications around grape varieties and methods of production. I do, however, feel the emergence of sparkling Sauvignon could be an exciting and innovative area. How has No.1 Family Estate driven, or responded to, those changes? We have spoken with New Zealand Winegrowers about the concept of holding a methode traditionelle workshop or seminar for all wineries in this category. It would raise the profile and increase knowledge to ensure the future development of methode traditionelle, and therefore broaden the awareness of what should be, for New Zealand, a leading high-quality wine category. We have also created a new company to create our first Sauvignon Blanc sparkling, made in the methode traditionelle way. For this, we enlisted the help of Eveline Fraser, formerly of Cloudy Bay. Her experience in the production of both sauvignon and methode traditionelle is the perfect combination to make a wine at the top end of this new category. To what extent is your company made stronger by being a family business? Decisions can be made quickly and the business is driven by a passion for our wine. It is also a lifestyle: another
version of the family farm. We run as a close-knit, tight group of people who are on the spot day and night. The staff and our invited directors are part of our family group and this creates an atmosphere of teamship and shared purpose. There’s also the long family tradition from Daniel’s origins in Champagne. What’s your personal philosophy on moving a business forward? Small steps and consolidation. Be market driven and believe in yourself and your product. I’m a great believer in listening to gut instinct. See where you personally want to be with your product and move quietly, steadily and prudently toward it. We have a great board of directors and advisers whose skills, experience and wisdom we value highly. Daniel and I have our own skills but we cannot be all things to all aspects of the business. What are the unique challenges in promoting champenoise? Champagne and its legendary marketing. Convincing the consumer that here in New Zealand we can make a wine that rivals champagne in quality and image. Also, I refer back to my previous comments about ‘pretty’ bottles masquerading as champenoise. Methode traditionelle is a different product to still table wine. The selling season is more limited: Christmas and summer. The rustic, earthy ‘winebarelly’ image of still wines doesn’t work for bubbles. People think glamour, celebration and elegance when they
MAKE IT A STELLA ARTOIS CHRISTMAS
are thinking champagne or methode. It can be a tall order for a local marketing person with a limited budget to create a glitzy aura to compete with Champagne. What will be your major challenge in 2011? Like anyone in business at present, we need to meet the challenge of the economic downturn and its effects. Being part of this amazing industry which is working side-by-side to navigate difficult times keeps us all strong and optimistic. What are you doing to prepare yourself for this? We’re planning and budgeting. We’re anticipating as much as possible what the trends and hurdles may be. And, of course, we’re strengthening solid existing markets, looking after the people and markets who have looked after us and working together with them to adapt to the market conditions and seek opportunities which will be of mutual benefit. In times such as these there can be great opportunities and it’s vital to be flexible in your thinking.
Stella Artois has Christmas all wrapped up with a special edition 12-bottle pack designed especially for the festive season. The gold stars, red ribbon and a gift card printed onto the pack give a distinctive festive feel and it is a great gift idea for the hard-to-buy-for person. Stella Artois can trace its roots right back to 1366 and a brewery in the Belgian city of Leuven. In 1717, former master brewer and owner of the brewery, Sebastian Artois, changed its name to Artois. The brewers of Stella Artois devised a special holiday drink for Christmas that they christened “Stella”, which is Latin for star. Now, Stella Artois is enjoyed all year round by those who appreciate the finest quality and craftsmanship. Look out for the Stella Artois Christmas 12bottle pack along with other fantastic Stella promotions at all leading supermarkets and liquor stores. Stella Artois is the number-one Belgian beer in the world and is present in over 80 countries. It is a bottom filtered, blonde pilsner and is thirst quenching with a malty middle and crisp finish delivering a full flavour and a hint of bitterness. Stella Artois is best enjoyed served between 3° Celsius and 5°C to guarantee a perfect experience of this gold standard lager.
In the longer term, what’s the next major step for No.1 Family Estate? Consolidation is important. We want to strengthen our base and improve quality. We plan to delve more into older, innovative and regionallydifferent methodes. It will take patience and persistence: the same qualities required to make great wine. l decEMber 2010 FMCG
61
Sustainability Champion Award for Villa Maria’s Fabian Yukich Villa Maria has had a long held objective to leave something for the next generation and, under the leadership of Sir George Fistonich, the company is committed to finding ways to reduce its impact on the environment. This philosophy was officially acknowledged when Villa Maria’s national wineries manager Fabian Yukich was announced winner of the Sustainability Champion Award at the NZ Sustainable Business Network Awards in November. Yukich has been part of the Villa Maria team for more than 12 years and has been instrumental in embedding social, environmental and financial sustainability into the core of the company’s culture. He is not only involved in sustainable business improvements within Villa Maria, he is also an advocate for improving recyclables and actively works to lobby local government to implement a change. Yukich’s sustainable business strategies include BioGro Organic Certification from the vineyard to the winery and successfully lobbying New Zealand’s glass manufacturing company OI Glass to manufacture less energy-intensive glass wine bottles. He has also introduced Toyota Prius Hybrid vehicles for the national sales fleet. Villa Maria has been one of New Zealand’s most awarded wineries since it was founded by Fistonich in 1961. The company is still privately owned today and the Villa Maria Estate range is enjoyed in over 50 countries worldwide. With a strong sustainability focus and absolute commitment to quality, Villa Maria has won critical acclaim
Fabian Yukich, Villa Maria’s national wineries manager.
for its portfolio of wines. In 2009, Villa Maria achieved BioGro certification for the Auckland winery and bottling facilities. Villa Maria is in the process of converting its Templar Vineyard in Marlborough to organic practices. The Verdelho block at Villa Maria’s Ihumatao Vineyard is also set to gain full BioGro certification in 2012. In 2010 Villa Maria became the first major NZ winery to receive CEMARS (Certified Emissions Management and Reduction Scheme) accreditation. CEMARS is an internationally recognised carbon reduction programme run by Landcare Research. Villa Maria has been an active and accredited member of Sustainable Winegrowing New Zealand (SWNZ) since 1995. l
Speight’s new on-pack summer promotion This summer, Speight’s is celebrating ‘the pride of a man’s castle’ with a new on-pack promotion. The promotion gives Kiwi blokes the chance to win a host of mantastic prizes, 6000 to be exact, including Speight’s Southern Man Cookbooks, personalised stubby holders and BBQ aprons plus over 5000 personalised beer labels. Speight’s knows that the pride of every man’s castle is his BBQ, so it has 50 personalised BBQs each worth $2500 to give away – so men can really make their castle their own. To enter they just cut the coupon printed on-pack and send it away. Speight’s man Sean O’Donnell says, “We know how much pride guys have in their home. They enjoy their backyard with a cold beer on a hot summer’s day. Speight’s is toasting this simple pleasure by giving away some quality gear to help make their home their castle.” l
62
FMCG decEMber 2010
New GM to look after DB Breweries’ supply chain DB Breweries has appointed Rob Richardson to the newly-created role of general manager – supply chain. Richardson has extensive supply chain and brewery management experience and reports to DB Breweries’ managing director, Brian Blake. He also sits on the company’s executive management team. Richardson’s most recent role was head of brewing operations for Heineken UK (formerly Scottish and Newcastle) where he worked for 24 years in a wide range of supply chain and commercial functions. These roles included director of sales in North England, director of customer services for the UK off-premise
business, regional distribution director and brewery manager at Berkshire Brewery. British-born Richardson says he is delighted to be joining DB and is looking forward to visiting the company’s four regional brewery operations and meeting his new colleagues. He is based at DB’s Waitemata Brewery in Auckland. l
Rob Richardson, DB Breweries’ general manager, supply chain.
Best Merlot in Australia and New Zealand Kim Crawford Small Parcels Corner 50 Merlot has been named as this year’s Champion Merlot in New Zealand and Australia at the Winestate Wine of the Year 2010 official awards in Auckland. This exclusive event showcased 60 of the best Australian and New Zealand wines of 2010, selected by the judging panels from the 10,000 submissions received in the previous year. The win adds to a growing haul of medals. It took the gold medal and trophy at the 2010 Bragato Wine Awards and the gold medal at this year’s Hawke’s Bay A&P Wine Awards. Kim Crawford global brand manager Nina
Stojnic says they are delighted with the result. “Kim Crawford Wines has long been acclaimed for its Sauvignon Blanc so we are thrilled to see our red wines getting the recognition they deserve,” she says. “A judicious approach in both the vineyard and winery has resulted in a wine of exceptional flavour and character.” Winestate Magazine described it as a sturdy and generous red, deeply coloured, with fresh, brambly, plummy flavours, showing excellent concentration, hints of coffee and sweet oak, good complexity and the power to age. l
Kim Crawford Small Parcels Each vintage Kim Crawford winemakers seek out small batches of exceptional grapes which are made into the Small Parcel (SP) range. These flagship wines are devoted to delivering the very best expression of Kim Crawford and New Zealand. The grapes come from exceptional vineyards in New Zealand’s best winegrowing regions and must meet stringent requirements before they are passed for winemaking. Special attention is lavished on the finest grapes making a wine that may be individual, not just to that year or particular vineyard, but to that small parcel of carefully selected fruit.
decEMber 2010 FMCG
63
G r o c e ry C h arity Ball
sn a p
The Grocery Charity Bal l raised $270,000 for the Melanoma Founda tion.
From left to right: Sc ott MacKay, Director Tosco; Ross MacKenzie, Ma naging Director Ha nsells Food Group; Heather Hylan d, CEO Melanoma Fo undation; Don Graham, Busin ess Development Ma nager William Aitken&Co; Rob Da vis, Director Admiss ion.
e aging line at th spects the pack Tamaki. PM John Key in st Ea an premises in new Lion Nath
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 for a Speight’s Gift Pack valued at over $100! Just email your high res image with a caption and your contact details to: editor@fmcg.co.nz
ckland.
mmit 2010 in Au
World Dairy Su ing Ceremony,
Open
0 mmit 201 u s y r i a world d
gaard, Niels Grau t the rs e d a e L y y Kozak, a World Dair r and Jerr ie rr e F w Andre 2010. y Summit World Dair Performer at the Tetra Pak Gala evening, World Da iry Summit 2010.
Millbrook’s new 27-hole golf course in Queenstown is named leading Australasian Golf Resort at the World Trav el Awards.
DIARY 2011
JANUARY
APRIL
16-18
WINTER FANCY FOOD SHOW San Francisco, USA www.specialtyfood.com
8-10
21-30
INTERNATIONAL GREEN WEEK BERLIN Fair for food, agriculture and horticulture. Berlin, Germany www.gruenewoche.de
MAY
30-2 FEB
ISM International sweets and biscuits fair. Cologne, Germany www.ism-cologne.com
16-19
FRUIT LOGISTICA International trade fair for fruit and vegetable marketing. Berlin, Germany www.fruitlogistica.com BIOFACH 2011 World organic trade fair and Vivaness 2011 (Trade Fair for natural personal care and wellness). Nuremburg, Germany www.biofach.de/en
27-2 MAR GULFOOD DUBAI www.gulfood.com
MARCH 1-4 11-13
5
NZFGC Half Yearly Meeting Villa Maria Estate, Auckland www.fgc.org.nz
11-14
HOFEX 2011 The 14th Asian International Exhibition of Food & Drink, Hotel, Restaurant & Foodservice Equipment, Supplies & Services. Hong Kong Convention & Exhibition Centre, Hong Kong www.hofex.com
12-18
INTERPACK International packaging trade fair. Duesseldorf, Germany www.interpack.com
26-28
BioFach China International organic trade fair. Shanghai, China www.biofach-china.com
27-29
THE FOOD SHOW (WELLINGTON) New Zealand based food show. Westpac Stadium, Wellington www.foodshow.co.nz
FEBRUARY 9-11
THE FOOD SHOW (CHRISTCHURCH) New Zealand based food show. CBS Canterbury Arena, Christchurch www.foodshow.co.nz
FOODEX International food and beverage exhibition. Makuhari Messe, Tokyo, Japan www3.jma.or.jp/foodex/en/
NATURAL PRODUCTS EXPO WEST International trade show for the natural, organic and healthy products industry. Anaheim, USA www.expowest.com
22
NARGON AGM Wellington www.nargon.co.nz
JULY 28-31
Heat up your Christmas sales with...
THE FOOD SHOW (AUCKLAND) New Zealand based food show. ASB Showgrounds, Auckland www.foodshow.co.nz
Is your show featured here? If you’d like to be included please email: editor@fmcg.co.nz.
NZ’s favourite bagels just keep getting better NEW
FLAVO UR
ABE0041
l, uring, no cholestero lo co no s, ve ti va er ours, no pres bulous flavour, With no artificial flav l ingredients and fa ra tu na t bu g in th no no MSG and difference. ers a clear point of um ns co rs fe of S E’ AB m snack esh bagel and premiu fr e th in er ad le market tastings, That’s why we’re the esence and in-store pr g in is rt ve ad ng stro rength. categories. With our from strength to st ow gr to s le sa r ou you can expect For more inform ation call 0508 BAGELS or visit www.ab esrealbagels.com