incorporating NovemBER 2012 Volume 18 No 10 $9.15
THE BUSINESS OF MANUFACTURING • LOGISTICS • SUPERMARKETING
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Call us today and find out how Hypermedia can make your brand come alive in-store.
TURNING SHOPPERS INTO BUYERS Phil Neely General Manager 021 302 459 phil.neely@hypermedia.co.nz
www.hypermedia.co.nz
They cook. You clean up. Demoworks makes it easy for shoppers to fall in love with your product - one mouthful at a time. Our staff, like Jessamyn and Rebekah, are trained to cook and beautifully present your food on site and nationwide from Avondale to Karori and as far as Ferrymead. They’re also expert at delivering a well-crafted sales pitch. So if you want to give your brands the best possible chance of breaking this year’s sales targets, introduce yourself to new customers with Demoworks. And don’t get left on the shelf.
Contact us today on 09 302 0651 or visit demoworks.co.nz
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8
E ditor’s note I ndustry news FMCG Online Trend Monitor
Category checks
contents
6 8 11 13
NOVEMber 2012
Up Front
22 Soy, milk, dairy products 34 Personal wash
Regulars 12 Nargon
Proposed changes to alcohol legislation
14 Fresh and local In season
16 Feature
Made in NZ
28 Feature
40
Shopper insights: When dairy isn’t dairy
30 FGC
Reducing salt in our diets
32 Legal
The Madrid Protocol – a new tool for overseas brand protection
33 Subscription form 34 Health & Beauty Aisle Personal wash
38 What’s Hot
New products in store
54 Snap
Spotted out and about
65 Diary
Your guide to upcoming industry events
20
OUR COVER Health Basics is New Zealand’s No.1 locally made personal wash range.
contents
Grocery business
NOVEMber 2012
Keeping you up to date with packaging, IT, supply chain and logistics
40 G rocery business news 42 F eature Thinking long term
44 P rofile
Pakworld’s milestone
45 B ehind the scenes
Refrigeration, maintenance and cleaning
48 R ecruitment
Rock stars, personality profiles and psychometric tests
49 G S1
Dr Peter Stevens on barcodes, apps and surprises in the digital world
Convenience store and oil channel updates
50 F eature
The longest summer drink
52 N argon
42
Trina Snow finds a lobbying bill is fatally flawed
53 R esource directory
42
56 F eature
Tapping into a traditional channel
58 B WS industry news 62 F eature
Sparkling wines: Big biz in fizz
45
e ditor ’s note Vol 18
No 10
NOVEMber 2012
issn 1175-8279
Incorporating
Serving the business of manufacturing, logistics and supermarketing
tamara rubanowski – editor editor@fmcg.co.nz
peter corcoran – account manager Mob: 021 272 7227 peterc@mediaweb.co.nz
Miles Gandy – Account Manager Mob: 021 266 8145 miles@cooperstreet.co.nz
Trish day – BWS Account Manager Mob: 027 561 6556 trishd@mediaweb.co.nz
Production Manager Fran Marshall (09-832 0024) franm@mediaweb.co.nz
Design Cherie Tagaloa
Subscriptions subs@mediaweb.co.nz 09-529 3000 $90.00 a year (incl GST) for 11 issues Australia $150.00 Rest of the world $190.00
Printing & Pre-press PMP Print
Publisher
Mediaweb Limited PO Box 5544 Wellesley Street, Auckland 1141 115 Newton Road, Eden Terrace, Auckland 1010 Phone 09-529 3000, Fax 09-529 3001 www.mediaweb.co.nz
Trail blazers and changing landscapes I was chuffed to meet the legendary Peter Yealands recently and during our chat over a glass of wine he explained the sustainable business practices, which his awardwinning winery is famous for. Yealands Estate uses heat recovery and wind and solar power for its winery, now close to being self sufficient.“We are only one wind turbine away from our goal,” says Peter. I think he is such an inspirational trail blazer, but he humbly says that he “just likes to do things differently”. You will find some of the industry leaders who are embracing sustainability as a core business value on pages 42-43. The food manufacturing sector has been thriving at a compound annual rate of 12% for the past 15 years and I am convinced that this sector will keep growing in the coming years as a pillar for our economy. On pages 16-21 we continue our ‘Made in NZ’ series, highlighting some of the unique products (food and otherwise) that are proudly made here. Also in this issue, we explain the Madrid Protocol, look at new product developments and lift the lid on private label brands in our online feature on fmcg.co.nz. Recent research by Canstar reveals a
major change in the way TV viewers are responding to TV advertising. Ad avoidance it seems is at an all time high. In a recent survey over 3/4 of all respondents say they avoid watching TV adverts, with 31% saying that they record their favourite shows and fast forward through the ads. The research confirms that the advertising landscape is changing. Our team is frequently asked if placements in FMCG magazine “work” and produce results. This letter from company director Michael Howe, one of our recent advertisers, speaks for itself: “I hope this email finds you and your team well! We are still getting positive “I saw your article in FMCG magazine” from buyers and we can’t thank you enough for that exposure. We have been so fortunate this year with our retail sales growth. With the addition of 120 Countdown locations we are now happily sold in over 350 stores throughout NZ.We have also been ranged in Christchurch with New World and Pak’N Save… so the excitement continues for us as we turn NZ Kettle Korn from a simple (great) product into an actual brand. Developing a brand focused on delivering the best hand made, gourmet popcorn in NZ is now our goal. . .” Enjoy this issue,
The opinions and material published in FMCG are not necessarily those of the publisher except where specifically stated.
Tamara Rubanowski editor@fmcg.co.nz
© 2012 Mediaweb Limited. ISSN: 1175-8279 (Print), 1179-8718 (Online).
Official b2b magazine for the Gluten Free Food & Allergy Shows. Media partner Nargon Supplier Awards. Media partner Fine Food NZ 2012.
Corporate Social Responsibility Mediaweb supports the following organisations:
MADE IN, OF, AND FOR NEW ZEALAND Kiwi’s love to buy NZ Made products and most prefer to buy them if they are affordable. Consumers told us what they wanted and we have delivered!
REFRESH YOUR PERSONAL WASH CATEGORY SALES TODAY! Category Unique Offer Every Day Affordable Well Supported OVER
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PRINT CAMPAIGN TV CAMPAIGN CONSUMER PROMOTIONS AND MORE
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news
(L to R) Neil and Cameron Hogg.
New World Tawa raises the bar One of the most innovative supermarkets in New Zealand, New World Tawa, opened its doors in October. Thanks to a combination of unique in-store experiences and environmentally-friendly design features, Wellington’s newest supermarket promises to deliver a superior shopping experience. Owner Cameron Hogg says the new store is a milestone for the growing Tawa community, with the supermarket designed to service about 4700 households in the immediate area. Approximately $14 million has been invested in the development of the 2800 square metre store. Hogg says: “Our family has been in the grocery trade for four generations. Along with my parents, Neil and Robyn, and my sister Nicole, we are really looking forward to helping families get the best out of their supermarket experience, and make their lives just that little bit easier.” Hogg also says they were keen to ensure there was minimal disruption to locals, offering both a temporary supermarket and a free shopper bus to other New World stores during the 10-month construction period. “We have really appreciated the support of the community during the construction period, so we can’t wait to wow them
8
FMCG NOVEMBER 2012
with this brand new, leading edge store.” Store innovations include baked-to-order pizzas, a café selling gelato, inspiration centres for shoppers to grab everything they need in one go, market-style produce displays with lots of specials on seasonal fruit and veges, plus a wide range of filled rolls, pies, hot bakery items and freshly made sushi for lunch, plus clever new shelving, which makes it easier for customers to find what they want. The original pedestrian walkway has been upgraded and realigned through the newly refurbished mall, creating a safer and more welcoming thoroughfare to Oxford Street, and additional retail opportunities for other local businesses. “New World Tawa will also be one of the most energy efficient supermarkets in the country, with green initiatives like energy efficient lights, waste heat reclaim, covers on the frozen sections, and a new refrigeration plant.” Along with the innovative in-store features, the Hogg family are keen to continue their support of community initiatives. The store will employ around 200 staff, all of whom have been given extensive training to ensure they deliver the unparalleled customer service New World is famous for. The store will be open from 6am to 10pm, seven days a week. l
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news It’s a Karma thing Love NZ has kicked off a six week campaign called “It’s a Karma Thing” to encourage people to recycle their drink and food containers into Love NZ recycling bins nationwide. Everyone who ‘does the right thing’ and recycles into the right public bin can register to win cool prizes in an online auction. The campaign is brought to life in a video featuring DJ Jay Reeves. “We all know how Karma works...do good things and good things will come back to you. All you need to do is download the ‘It’s a Karma Thing’ app, scan the QR codes at the Love NZ bins and you’ll get ‘Karma Kredits’, which you can then redeem for awesome prizes. So remember to look for the Love NZ bins when you are out and about and recycle your cans and bottles. It’s that simple,” says Reeves. There’s also plenty of local council support for the campaign with 26 regions involved to date in Love NZ public place recycling initiatives, which are funded by the Government’s Waste
Minimisation Fund, local authorities and industry. In the past two years Love NZ’s programmes have more than doubled the number of permanent recycling bins nationwide to over 1000 and added 2000 mobile event recycling bins which can be used in sports stadia, concert venues and other public arenas. The campaign is championed by Coca-Cola Amatil NZ, Trade Me, Vodafone, The Warehouse and Countdown with support from councils and venues across the country. The campaign runs until December 3, 2012. For more information go to karmathing.co.nz. l
In the past two years Love NZ’s programmes have more than doubled the number of permanent recycling bins nationwide.
New World Opotiki open for business An eagerly anticipated new supermarket in Opotiki opened on Tuesday 16 October 2012. “New World has been in the heart of the Opotiki community since 1973, and we are delighted to bring a bigger, brighter and modern store for our customers,” says Foodstuffs (Auckland) general manager property development, Angela Bull. “The new New World is 2515 square metres in size, which is over twice as big as the old store. This means we have more room for fresh foods, a better range of products, and all the value and service that represents the New World brand.” “The new store means 35 new jobs, so that 100 people are now employed at the New World,” says Jimmy Heal, owner operator of New World Opotiki. “It is a great investment in the town and we have had wonderful support from all of our customers while the new store has been built. I can’t wait to open the doors to a bigger and better New World, which has
10
FMCG NOVEMBER 2012
a larger range of fresh food and grocery products, along with the same great prices and personal service our customers currently enjoy.” The new store is located next to the existing New World, which has continued to trade throughout construction of the new store. The old store will be demolished once the new store opens, to provide a total of 143 car parking spaces. Much of the construction work took place underground to ensure that the supermarket can withstand earthquakes, therefore providing a safe environment for customers to shop in. l
@
What’s online
fmcg.co.nz FMCG has a few web exclusive features to get you clicking.
Improving our workplace The benefits of a healthy workplace culture are many, explains Kevin Vincent on fmcg.co.nz.
Lifting the lid on private labels Bindi Norwell of TNS New Zealand examines consumers’ buying behaviour in her online column.
New Products
Foodtech Packtech 2012 Nick Rowe, director of The Packaging Collective reviews the event in his new column on fmcg.co.nz.
No link between red meat consumption and cancer?
PL US
From the brand new Garnier Nutrisse Ultra Violets collection to new beverages and line-caught Albacore tuna cans, take a sneak peek at some of the latest product launches online.
Fiona Carruthers, nutrition manager, Beef + Lamb New Zealand talks to Dr Dominik Alexander who has extensive experience in health research methodology and epidemiology (visit fmcg.co.nz).
An extensive archive of previous issues of FMCG you may have missed as well as news, category reports and more.
n a rgo n
Little value, plenty of cost Trina Snow, executive director, NARGON.
Proposed changes to alcohol legislation would add nothing, says Trina Snow.
Our MPs are getting set to debate the Alcohol Reform Bill. Politicians from across the spectrum have submitted more than 20 Supplementary Order Papers (SOPs), many of which propose significant amendments to the existing bill. A number of those amendments could impact the retail grocery sector. Justice Minister Hon Judith Collins has introduced an SOP which includes definitions of food products, ready-to-eat prepared food and snack food to assist the “decision makers” in determining whether a premise is a grocery store. One criterion of a grocery store is that the principal business is the sale of food products. This distinction is important because a grocery store is eligible for a liquor licence while other stores (such as convenience stores) are now not. NARGON contested the Government’s push against smaller stores saying decisions should be made based on the store’s actions and record, not size or sales. However, the Government has forged ahead and this SOP at least gives more guidance on the definitions. Another key provision would require supermarkets and stores to designate one part of their premises as a permitted area for the sale, display, advertisement and promotion of alcohol, to limit the exposure of shoppers to alcohol marketing. The permitted area cannot usually include the store entrance or the main pedestrian route to the checkouts. Basically, the alcohol section has to be shunted off to one side. NARGON does not believe this provision is necessary but, if passed, we doubt it will impact shopper behaviour. Labour’s health spokesperson Maryan Street has drafted SOP 112, which would apply a “health levy” on all alcohol purchases at the point of sale. She says this would stop heavy discounting and sales below cost (loss-leading). Her colleague Lianne Dalziel has also
12
FMCG novemBER 2012
introduced SOP 113, which includes a minimum price per unit for alcohol sold from off-licences. And SOP 81 from Maori Party MP Te Ururoa Flavell would also set a minimum price and create new offences relating to the sale of alcohol below that level. NARGON does not believe a minimum price would do much to reduce alcohol harm, but it would certainly increase the profits of budget liquor companies. Flavell’s SOP also includes a prohibition on all displays and advertising of alcohol in grocery stores and supermarkets. NARGON considers that such a ban would be unnecessary and disproportionate. Labour MP, Andrew Little proposes in SOP 110 that alcohol sales in off-licences (including supermarkets and grocery stores) be limited to 10am to 8pm. He says, “evidence has shown that people purchasing alcohol later in the evening are more likely to have been drinking beforehand and may not have the judgment and self-control necessary to make cogent decisions”. We strongly believe the current law – that alcohol cannot be sold to intoxicated people – is more than sufficient. As drafted, a family who went to the movies after work would be unable to pick up a bottle of wine for dinner on the way home. Customers should be assessed on their state at the time of purchase, not an arbitrary time limit set in Wellington. Labour MP Louisa Wall has introduced SOP 107, which would prohibit any off-licence premises from being located within a one kilometre radius of an early childhood centre, or a primary, intermediate or secondary school. However, supermarkets are excluded from this restriction because she notes, “the provisions in the bill require supermarkets to meet criteria that ensure the effect on children of sale of alcohol is minimised”. It is pleasing to see the responsible stance taken by supermarkets is acknowledged in this SOP, even if that attitude is not reflected in other amendments. Green MP Kevin Hague’s SOP proposes increasing the fine for supplying alcohol to minors from $10,000 to $20,000. This would bring it into line with the existing penalties for the supply of out-of-hours alcohol. NARGON considers this to be a very sensible provision. However, most of the other amendments would add little value but plenty of cost.
TREND MONITOR A snapshot of new trends in overseas and local markets. Solar chargers
Biodegradable party ware
Just stick these on your office window and charge up your gadgets – seen on Amazon.
Designed in Japan and available in NZ, Wasara features plates and a selection of bowls in elegant shapes, made from begasse (sugarcane waste), water, bamboo and reeds. No chemicals, glues or resins are used in this compostable range.
Digital coupon dispensers Reckitt Benckiser’s digital touchscreen coupon dispenser was developed by Val Morgan Retail Media. The Vanish Napisan custombuilt units were installed in selected shopping centres across Sydney and Melbourne earlier this year to encourage interaction with shoppers, run TVC content, and dispense discount coupons.
Fortified water novelty Vitamin Squeeze is a nutrient enriched water enhancer, which is added to a glass of water. The unique product is sold in the US in a custom-designed, inverted bottle – the first-of-its-type in the waters category.
Low alcohol options Consumers are more health conscious than ever and new low alcohol products, such as Brancott Estate’s Flight range, are predicted to be popular this summer.
november 2012 FMCG
13
FRESH & LOCAL Specialist resource writer John Clarke highlights developments in produce, fish and meat supply.
ON THE WAY Raspberries and the very first cherries.
IN THEIR PRIME Asparagus, globe artichokes, new potatoes. New Zealand navel oranges, lemons, limes and tangelos. Strawberries, snapper, whitebait, flounder, mullet, trevally and scallops.
FALLING OFF Brussels sprouts, yams, leeks and parsnips. Pacific oysters.
DONE AND DUSTED Persimmons and NZ red onions. Fresh hoki, hake, ling and bluefin tuna.
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FMCG OCTOBER 2012
FISH & SEAFOOD Flounder wake up from now on so volumes are about to increase. Greenshell mussels are in prime condition. Mullet have also started to move about and availability improves from November onwards. Pacific Oysters will begin to loose condition as we move into summer but are still good at present. Snapper have begun schooling in the Hauraki Gulf and the run is on. Trevally The main season is on for this very fine and well priced fish. The Moki season is in full swing and at very good prices in the marketplace. Warehou is another southern species. The main season is on and the price is always reasonable Whitebait should be in full swing by now but we have not seen much available as yet – here’s hoping.
MEAT Again expect no real drop in prices for New Zealand red meat over the next month. But supply will be improving. Sheepmeat Lamb schedules are still well down on last year and the trend steady. Nationally farmers are reporting lifts in lambing percentages due to mild autumn weather and good survival rates at lambing. So we can expect good supply of lamb this season at reasonable prices, if the pessimistic pricing reports for starting lamb schedules are anything to go by. Mutton schedules have not been this low for yonks and mutton is well worth a push before Christmas. Beef Local trade prices for beef are easing at 430-450c/kg. The price outlook on the local trade beef front will depend on three things this coming year – the value of our dollar, the spring and summer pasture growth and most importantly the effect of the drought in the United States on demand. Sadly, chances are we can expect a lift in the beef price.
Farmed venison Schedules are close to the peak as deadlines for shipments into Europe near, but prices could very well ease in November as chilled premiums are removed. Venison is likely to peak at $1.50/kg lower than last year. Poultry Start hunting out those turkeys – Christmas is on the way already! Processed meats With the holiday season looming it is timely that the 2012 ‘Ham of the Year’ at the annual 100% Bacon & Ham competition was announced. The best ham in the land award went to Auckland-based marketstyle chain ‘Nosh’ with its Black Rock Butchery free-farmed, Manuka smoked, honey cured ham (pictured above). Nosh also took out the best boneless sliced ham award. According to chef and head judge Graham Hawkes, Nosh’s sliced ham was a standout entry in the blind-tasting, with all four judges unanimous in their decision to award it top honours.
FRUIT Apples Most of the New Zealand seasonal apples are done and dusted. It is mostly US-sourced produce for the next few months. Avocados The new season Hass and Hayes (pebbly skinned), our best avocados, are here in bulk and the price has dropped back a little. Citrus This is the time for our local citrus varieties. Tangelos will be good buying from now on and are popular with the customers.
The first gooseberries will be in the market for November. As it is with apples so it is with pears, being mainly US-sourced produce at the moment. The American pears aren’t so bad and have a good clean skin. Nashi is the same I’m afraid. Pomegranates will start to show up this month. They ripen in the northern hemisphere’s fall and we tend to see them through our summer months. Stone fruit Still a lot of imported stuff at present but the early local product will start to appear later this month. The first Dawson Cherries, North Island Mayglo Nectarines and the early apricots and peaches from the Hawke’s Bay, and all guaranteed to be expensive. We will also see the first Wilson Early Plums but these are very soft fleshed. Most early season NZ grown stonefruit has a poor shelf life. Strawberries NZ strawberries are in the markets this month.
VEGETABLES Artichokes (globe) will be in the markets for a month or thereabouts and supply increasing. Asparagus The best New Zealand new season spears are here. Early prices were as usual exorbitant, but have fallen back this month. Beans A few NZ glasshouse Mangere Pole beans are in the markets. The outdoor round ‘French’ beans (mostly
Gisborne grown) should show up shortly. Broad beans are out there now. Capsicum prices are still very high but almost all the locally grown varieties will start to come on stream this month. These will be grown hothouse (usually hydroponic), few and at a price. There is of course plenty of Aussie and island stuff being imported. The main New Zealand season is from January until April. Courgettes Our New Zealand zucchinis start again in this month. Cucumber The telegraphs have come back in quantity, all hothouse of course. Garlic Very little New Zealand garlic around but the imports are coming in bulk, mainly from China. The stuff from the USA is far superior but the price is very high. New season Kiwi garlic will be available in a month or so. Kumara Many of the kumara in the marketplace are starting to look a little rough so watch the quality until the new season starts. Leek quality has been great but will become variable from late November with some starting to show a core and supplies will fall over by mid December. Parsnips are just about finished for the season but should be of good quality until late November. Potatoes Still some good quality main crop potatoes but I have seen some greening and some generally very poor quality spuds being sold in our retail outlets. But on the bright side
the first new crop potatoes are in the marketplace. They are very good quality but they deteriorate very fast; so purchase only quantities that can be turned over quickly. The (so-called) Maori potato varieties are poor quality at this time of year. More will be dug in December. Salad leaves are more expensive than usual. Rocket should be less expensive from now, but it will not be. Nice crunchy icebergs in the markets, but supply is a little short. Shallots New Zealand shallots will be arriving very soon. Tomatoes The first NZ hothouse main crop is in full swing and prices were shocking but are falling and at least they are edible. Yams Only a month or so to go for this wonderful little root.
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XXX BEBZ DP O[ NOVEMber 2012 FMCG
15
Made in NZ Buy New Zealand Made is celebrating its 25th birthday next year. To mark the occasion, FMCG talks to some of the people behind the success of our excellent local products.
N
ew Zealand has always been innovative in manufacturing, from agricultural supplies and dairy products in the early days to the enormous range of locally manufactured products now available. The Buy New Zealand Made campaign has been promoting this success story since 1988. Creating distinctive branding and marketing collateral to make local goods instantly recognisable, running advertising campaigns, supporting local trade shows, lobbying for government procurement – the Buy New Zealand Made campaign has been a true supporter of New Zealand manufacturing. FMCG talks to New Zealand producers and manufacturers to find out how the ‘Buying local concept’ has grown and taken on new meaning in the decades since the development of a globalised marketplace.
Harraways The New Zealand climate is well suited to grain production. Oats are more commonly grown in Otago and Southland (pictured) where the cooler damp climate and long summer daylight hours are ideal for the production of high yielding and uniform quality oats. The oats are milled in Green Island, Dunedin. In 1893 mill owner Henry Harraway replaced stone grinding with an oat roller milling plant and processed 1000 tons of oatmeal in its first year. This heralded the com16
FMCG DECEMBER 2012
mencement of breakfast cereal production for Harraways. The company was established in 1867. Harraways was purchased by Charles Hudson in 1947 and is still a New Zealand family owned business. To meet its growing demand over recent years, Harraways has increased its production capability with the addition of new plant and an increase in staff numbers. The company still processes oats in the true Scottish tradition and style, which gives Harraways oats a distinctive flavour and retains the wholegrain “goodness of nature” in the oat products. Harraway & Sons is a significant supplier of oat and grain cereals to the New Zealand retail and commercial markets and the company specialises in both traditional and added value breakfast cereal products with a wide range of specialty grain products including oat, rye, barley and wheat flakes. Rolled Oats and the finer milled Scotch Oats remain flagship products packed in environment-friendly paper bags and sold throughout New Zealand. Oat sachets “Oat Singles” are also available in a range of popular natural flavours. Wholegrain oats and bulk pack flavoured oats “Fruit Harvest” are all popular products and the company is also investing in the development of new products, retaining the values of GE-free New Zealand-made natural products using New Zealand grown oats. Harraways listens to customers and
made i n N Z
Oats are more commonly grown in Otago and Southland. works to ensure supermarkets have a good selection of products that customers want and need, providing quality products readily available to stores. Promotional and advertising support has increased brand awareness and promotional campaigns have helped to boost sales to achieve steady growth and provide stability to growers and those associated with the production of oats. “Harraways branded products have gained significant market share in the last 12 months and compete successfully against imported oat products from around the globe (MAT $ growth has been 9.5%),� says Ros Goulding, marketing manager. Harraways is your locally owned and operated breakfast cereal company, processing New Zealand grown oats with a true commitment to our local farmers and a growing number of valued customers.
DECEMber 2012 FMCG
17
m ad e i n NZ API Consumer Brands Based in South Auckland, with two state of the art manufacturing plants on site, API Consumer Brands is a leading developer, manufacturer, marketer and distributor of high quality pharmaceutical, toiletries and cosmetic products. Initially founded with an operational focus on over the counter products in 1976, general manager Mitch Cuevas says, “API Consumer Brands, under its new name and ownership, has grown and adapted to become a respected contract manufacturer and category brand leader in the Asia Pacific Region. “Through our NZ manufacturing sites, API Consumer Brands has
beneficial to both our customers and consumers.” As new markets evolve, consumer needs shift, manufacturing and regulatory requirements change and unique ingredients and fashions create opportunities, API Consumer Brands can respond and adapt quickly. “This is notably evident with the recent re-launch of the #No 2 brand in the Personal Wash Category – Health Basics,” says Cuevas. Joining the team in November 2011, senior brand manager Suzanne McKandry was tasked with making Health Basics, the company’s leading brand, relevant to the market and consumers of today. McKandry explains: “The significant re-brand
“Through our NZ manufacturing sites, API Consumer Brands has been able to capitalise on being especially in tune with local demand.” Mitch Cuevas, general manager, API Consumer Brands been able to capitalise on being especially in tune with local demand. This, combined with our recently re-organised sales and marketing teams, has allowed a responsiveness and flexibility that is mutually
18
FMCG DECEMBER 2012
from Health Basics celebrates New Zealand; our environment, our experiences and our innate connection to the land. It delivers upon consumer demand for locally made, high quality and importantly
m ad e i n NZ ‘affordable’ products. But the new range goes one step further, evoking emotional connections to our country, its uniqueness and ideas that resonate strongly with New Zealanders.” More than just being made in New Zealand, many of the hero ingredients throughout the range are now sourced locally: NZ Olive and Avocado Oils, Manuka Honey, Pohutukawa, NZ Sea Salts and Horopito, to name a few, with the entire personal wash range now enriched with the gel from the native New Zealand Harakeke Flax, proven to be more hydrating than Aloe Vera. “In creating something more indigenous and more authentically made of New Zealand, sourcing bottles from abroad just didn’t fit the criteria,” says McKandry. The distinctive and category unique new bottle forms were designed in collaboration with leading NZ industrial designer Jamie McLellan and MILK – an Auckland based creative consultancy. They were charged with developing a combination of design led packaging, and vibrant brand architecture – resulting in the new products, which are rolling out into stores as we speak. Actual bottle manufacture, along with our label printing and carton supply are all New Zealand based. New Zealand consumers told us what they wanted, and we’ve re-
sponded with a totally refreshed brand, “Made In and Of New Zealand”. We all know that we’re at our best when we’re feeling refreshed, so we’ve taken that sentiment and applied it to ourselves. Having just finished its financial year, which Cuevas explains “was the best year recorded in six years, the second best in its history; API Consumer Brands is set for an exciting future – not just with Health Basics in New Zealand, but with the opportunities that exist in taking quality New Zealand made products to new geographies”.
Waitoa Free Range Chicken Waitoa 100% New Zealand free range chickens are grown in the green sunny valleys of the Waikato region. Waitoa spokesperson, Jonathan Gray, says Waitoa free range was born out of a desire to offer customers tasty, nutritious, home-grown chicken. “At Waitoa, we’re focused on delivering exceptional free range products that meet the rapidly growing free range market need. “Consumers have the choice of Waitoa fresh free range whole chickens, kebabs, chicken nibbles, breast and thigh fillets, drumsticks and now a new packaged frozen Green Box range.” All Waitoa chickens are raised under accredited Free Range Egg and Poultry New Zealand (FREPNZ)
standards, have access to open space during the day, and are provided quality care that ensures exceptional quality free range chicken meat. “Being proudly free range is worth the extra effort, and we are confident consumers will agree,” says Gray. Contact the Waitoa sales department on 0508 800 785 or visit waitoafreerange.co.nz for more information.
Do you have a ‘Made in NZ’ story to share? Email: editor@fmcg.co.nz Visit buynz.org.nz to find out more about the membership benefits for retailers and manufacturers.
Good Kiwis buy New Zealand Made Got an FMCG product that’s made in NZ? Why not shout about it? Join Buy NZ Made and get access to the ‘NZ Made’ logo to put on your products. It’s recognised by 87% of shoppers, with 94% of kiwis saying they prefer to buy NZ Made. With a new website completely dedicated to New Zealand Made, we’re making it easier for consumers to find you and your products.
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An out-of-the-box kiwi first, free range packaged frozen ... Waitoa naturally. Waitoa free range Green Box Original Tenders, Lite Breast Fillets (Lemon, Herb & Garlic) and Tempura Nuggets ... set to expand the packaged frozen category. New - NZ free range frozen first Consumer appeal - natural choice
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Growth opportunities Which consumer trends fuel the rising sales in soy drinks, milk and new dairy products? FMCG talks to some of the suppliers in these categories.
G Photo: thinkstockphotos.com
oodman Fielder’s brands include Meadow Fresh milk and yoghurt; Puhoi yoghurt; Naturalea milk and yoghurt; For Everyone flavoured milk; and Tararua Real Iced Coffee. Marketing manager Caroline Jones says: “In indulgent yoghurt we have launched Puhoi Luscious Nectarine 450g and Fabulous Feijoa 450g. We have also just conducted a consumer promotion called “Meadow Fresh Cool Stuff for Kids”, which is one of the largest school give-aways to happen in New Zealand. Schools registered to compete for their share of over $500,000 worth of sports and art equipment by collecting as many stickers as they could off milk and yoghurt packs to determine their share of the prize. In yoghurt especially, this drove an increase of 10% in sales volume during the period and ensured consumers connected with our brand and brought communities together in the process.” Jones expects the new products to sell very well. She comments: “We have had excellent ranging results and strong consumer feedback on the products, especially from Puhoi’s fans on Facebook (we have a huge following with more than 38,000 fans). The launch was preceded with an exclusive sampling campaign in Progressive Enterprises’ stores where we gave away 200g sample pots of
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the new flavours with purchase of any 450g Puhoi yoghurt. There is a nation wide sampling campaign to follow shortly in Foodstuffs’ supermarkets.” When asked about consumer trends in this category, Jones says: “Premium yoghurt is going from strength to strength as consumers see it as a healthier way to indulge, and are loving experimenting with new tastes and flavours. Flavoured milk and iced coffee are following the trend in Australia. We see these products as growth opportunities.”
Biofarm Certified organic since 1986, Biofarm dairy products use only pure organic milk, which means clean, nutritious food that is free from additives and full of health benefits. Overlooking the Manawatu River, Biofarm is the second oldest commercial organic farm still operating, and unique in the fact that it is still run by its original owners, Jamie and Cathy Tait-Jamieson. They first adopted biodynamic methods on the farm in 1980 and the first yoghurt marketed under the Biofarm label was produced in 1986. Biofarm became the first company in New Zealand to supply organic dairy products to mainstream supermarkets and uses AsureQuality certification for independent verification of organic
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Current MAT to 7 October 2012 Total Milk Products:$69.212m Value % Chg vs YA 7.7 T. Coconut Milk & Cream:$11.571m Value % Chg vs YA 15.7 T. Milk Powder:$17.553m Value % Chg vs YA 34.9 Total Processed Cream Products:$13.927m Value % Chg vs YA -1.5 T. Processed Liquid Milk:$26.161m Value % Chg vs YA -3.4 Total Milk Drinks:$41.188m Value % Chg vs YA 0.5 T. Milk Shake Flavourings:$2.582m Value % Chg vs YA -5.1 T. Other Non Dairy Milk:$7.249m Value % Chg vs YA 8.8 T. Soya Milk:$19.626m Value % Chg vs YA 1.5 T. Uht Flavoured Milk:$11.732m Value % Chg vs YA -4.4 Total Fresh Milk Cream:$419.989m Value % Chg vs YA -4.4 T.Fresh Cream:$42.920m Value % Chg vs YA 3.1 T. Fresh Milk:$377.069m Value % Chg vs YA -5.2 Total Yoghurt and Dairy Food:$203.126m Value % Chg vs YA 5.6
T. Dairy Food Multi-Pack:$23.511m Value % Chg vs YA -2.1 T. Dairy Food Small Single:$1.608m Value % Chg vs YA 144.7 T. Other Health Yoghurt:$41.885m Value % Chg vs YA 18.3 T. Specialty Singles:$16.701m Value % Chg vs YA 13.1 T. Yoghurt Large Singles:$42.507m Value % Chg vs YA 4.9 T. Yoghurt Multi-Packs:$73.545m Value % Chg vs YA -1.3 T. Yoghurt Small Singles:$3.368m Value % Chg vs YA 38.9 Total Cultured Cheese:$49.303m Value % Chg vs YA 5.9 T. Cottage Cheese:$9.022m Value % Chg vs YA 6.7 T. Cream Cheese:$19.371m Value % Chg vs YA 5.7 T. Sour Cream:$20.910m Value % Chg vs YA 5.8 Total Cheese Excluding Cultured: $347.140m Value % Chg vs YA -4.0 T. Grated: $25.799m Value % Chg vs YA 0.3 T. Natural Block: $178.220m Value % Chg vs YA -9.2 Total Natural Slices: $3.252m Value % Chg vs YA 2.1 T. Processed Cheese: $32.137m Value % Chg vs YA -2.0 T. Specialty Cheese: $77.713m Value % Chg vs YA 5.9 T. White Moulded: $30.018m Value % Chg vs YA -1.1
AsureQuality has been operating in the NZ food and agricultural sectors for over 100 years. We are a leading provider of independent auditing, testing and certification services along the supply chain. Our routine and high-end testing capability, technical advice and fast, accurate test results support our reputation as a quality and trusted supplier of laboratory services. Talk to us today about our custom-built solutions and comprehensive testing services including: s Food and Environmental s Chemistry (including NIPs and Allergens) s Microbiology
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farming practices and products. The Tait-Jamiesons say: “We now have Biofarm Yoghurt in all supermarkets throughout the country. Our Ecofarm 650g pasteurised, but not homogenised, milk is available in Foodstuffs’ stores in the lower North Island and throughout the South Island and we have just begun the distribution of Organic Times NZ organic butter in participating Foodstuffs and independent stores nationwide.” Wild Apple yoghurt is among Biofarm’s new products, introduced to the market in October 2011. The Tait-Jamiesons comment: “It could well be a new product for several years to come, given that the last “new” product we had was our Bush Honey (1L) and Low Fat Honey (1L) launched in about 1999. We want to use only pure and organic ingredients in our yoghurts as we believe that as we feed our cows only the best organic, naturally grown grass, so we should then be making a food of equal standard for people! “The Organic Times butter is a new product for us. We distribute this for the Australian Company (Organic Times), but it is organic butter manufactured and packaged in Hamilton. We wanted to support the organic dairy farmers of NZ by working with this butter. It is a pure butter made from organically supplied cream, no blending, no additives, just delicious and smooth. We have lightly salted, and unsalted 250g packs and we will be concentrating on the roll-out of the organic butter over the coming year. “We are getting great feedback with our Wild Apple Yoghurt, which was a finalist in the 2012 NZ Food Awards. Progressive Enterprises has given us 24
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16% distribution throughout its stores and it is doing well for us in Foodstuffs throughout the country. We have supported the product with extensive in-store demos and by participating in food shows.” Commenting on consumer trends, they say: “It has been suggested to us that the face of the yoghurt cabinet has changed from that of health food to one of luxury food. Initially there was the misunderstanding that ‘gourmet’ yoghurt was by default ‘organic’, but now that people are reading the label and realising the amount of sugar in the gourmet yoghurts, they are re-thinking this idea. Biofarm yoghurt is the organic yoghurt by virtue of independent verification. Our ingredients list does not include milk powder (solids) or sugar and continues to attract the customer who wants an additive free, guilt free probiotic yoghurt that is hand crafted, tastes great and can be used every day by them and their families.”
Mainland Cheese At the time of writing, Rachel Burr, senior product manager Fonterra Co-operative Group told FMCG: “We are about to launch the Mainland Cheese Snacking range on October 29 with the introduction of Natural Cheese Sticks and Mainland
Cheese and Crackers (multipacks and singles). These snacks will provide real food options for our onthe-go consumers.” With respect to consumer trends in this category, Burr comments: “There seems to be an on-going trade-off between health and convenience. Health is perceived to be very important for children’s snacks, but in reality, rationalisation and justification will be made for more convenient but less healthy snacks. “Satisfaction and taste are key for adult snackers. Consumers are prepared to pay more for quality, something they will really enjoy. Rationally, health is prioritised over convenience. However, in reality, time is precious and convenience is essential.Price seems to be more important for families than non-families, due to larger budget restraints. For Mum, health is about natural ingredients, not just fat and sugar. She wants healthy tummy fillers, that will be guaranteed to be eaten,” says Burr.
Vitasoy Vitasoy’s product range includes UHT soy, oat and ricemilk available throughout New Zealand in all major retailers. All products are made with Australian grown soybeans, oats and rice and provide an array of functional benefits to meet consumers’ health needs. Vitasoy’s products include the Core Organics soymilk range, made with whole organic soybeans; the Soy Milky range, which has the goodness of soy with a great milky taste; and the Grains range including oat and ricemilk.
so y? Because when it comes to soymilk, naturally better is best. Before anything goes into my body, I like to know where it’s from and how it’s made. With Vitasoy, that’s easy. They make their products from Australian-grown whole soybeans, oats and rice in a process that’s as simple and natural as possible. Find out all about it at soy.net.nz or contact your local Lion D&D sales representative for more detials.
it’s naturally better.
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“Alpro was established 30 years ago and has grown to become the European market leader in soy products.” Greg Smith, business manager, Real Foods “In the coming months we will also be launching several exciting new products in New Zealand,” said a spokesperson. “VitaCafe has been crafted especially for coffee, and with a convenient 3-pack of 240ml serves, it is ideal for making lattes at home or for travelling; ensuring a delicious soy coffee is never far away. “VitaGO liquid breakfasts, available in Chocolate and Banana & Honey, will also be coming to New Zealand and are ideal for a busy lifestyle. Made with soy, oats and barley, VitaGO has no artificial colours, fla-
vours or preservatives and is great for breakfast on the go. “We are also launching an extended range of oatmilk products that includes Vitasoy Oatmilk Bone Essentials, Oatmilk Brown Sugar & Cinnamon, and Oatmilk Honey Delight. Just two serves a day of Vitasoy Oatmilk with beta-glucan can help actively lower cholesterol. “Health trends have been impacting the soy and grain beverages category, with brands emphasising the health and functional aspects of products. The category is continuing to grow as people are discovering more opportunities to incorporate milk alternatives into their lifestyle as product innovation within the category develops,” said the spokesperson.
Alpro launch Greg Smith, business manager Real Foods told FMCG: “We are very excited about the launch of Alpro soy cream, custards and desserts range into New Zealand. Alpro was established 30 years ago and has grown to become the European market leader in soy products and is owned by US-based Dean Foods Group. Today, Alpro has four production plants in Europe. “We know from our 26
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experience at food shows that there is a group of consumers who are lactose intolerant who are constantly searching for a wider variety of soy based products. There is also another group of consumers who are trying to incorporate more soy into their diets, as they are aware that it has lower levels of saturated fat and also contains zero cholesterol. “The Alpro range is UHT treated and has a shelf life of 9-12 months, which means very little wastage, and should be sold from the chiller as this is the traditional shopping destination for cream, custard and desserts,” explains Smith. Alpro soy cream will be available in a Regular and a Light format and comes in a convenient screw top pack. It is a pouring cream and is perfect for sauces, soups and poured over desserts. The Regular has 17% fat, which is half the fat of dairy cream and the Light has only 5% fat. Smith says: “The custard is available in Vanilla and Chocolate. This product is delicious hot or cold and can be used in every way you normally use custard, but without the guilt! The desserts are available in Chocolate and Vanilla and are sold in a generous 4x125g sleeve. Because these products do not have to be chilled, they are perfect for the lunch box or consuming on the go.” In summary, Smith lists the many benefits of the Alpro range. • Dairy & lactose free • Gluten free (custard and desserts only) • Cholesterol free • Low in saturated fat • Added calcium and vitamins (custard and desserts only) • Whole soy bean • Non-GM soy bean • Suitable for vegetarians and vegans • Long shelf life • Great taste.
When dairy isn’t dairy Norrelle Goldring analyses how cheese, milk and yoghurt are all shopped differently, offering new insights and lessons for the NZ market.
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ying into this month’s category check, here’s a quick ‘cheat sheet’ on a few topline shopping behaviours we have seen in Australia*, across cheese (both everyday and gourmet/specialty cheese), milk (white milk) and yoghurt. We’ve provided some implications and opportunities, but you’ll also be able to draw some of your own conclusions. There are a number of shopper behaviour metrics; we’ve only provided a sample of them here.
Traffic, Browse, Buy Conversions By understanding category traffic to browse ratios, and browse to buy ratios, you can understand whether your opportunity is in getting more browse, or if you have a conversion issue, or are a destination category (in the case of specialty cheese). White milk has a traffic to browse ratio around 70 percent, but its browse to buy ratio is around 90 percent. So shoppers aren’t really browsing milk, they are there to buy, and the lower browse rate would indicate that white milk isn’t required every trip. So the question is: can you actually increase the incidence/basket penetration rate? Not dissimilar to white milk, everyday cheese (block, sliced, grated, shredded) has browse rates around 60 percent and buy ratios around 80 percent, meaning those who are browsing are very likely buy. The bigger opportunity here is incidence and browse. Specialty cheese has lower browse rates, in the low 50 percent range and conversion rates (browse to buy ratio) 28
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in the high 50 percent range. Specialty cheese tends to be a destination for cheese lovers or those with a specific need, such as entertaining. However, layouts in this category can be confusing, as the majority of shoppers don’t understand or know much about specialty cheese (taste – they tend to use texture/feel and smell as a proxy), which explains the relatively lower conversion rate. What’s required here is an education campaign to achieve both the browse and the conversion rates. Yoghurt looks more like specialty cheese in that it has browse rates in the high 50 percent range and conversion ratios around 70 percent. The higher the browse to buy ratio, the more planned the category is likely to be. You can see that most of these major dairy categories, with the exception of specialty cheese, are fairly highly planned, often down to brand and sku. So the challenge and opportunity here is interruption and disruption to ‘force’ browse, as well as category communication and education to increase knowledge and therefore relevance, improving likelihood to buy.The more occasions a shopper can use a product for, the more likely they are to buy it.And the more involved in a category they are, the more occasions they are likely to find to use it in!
Degree of planning vs impulse Note that the degree of planning varies by trip type. Typically top up and destination/emergency shops are less impulsive and stock up shops are more
impulsive. That said, here’s how some dairy categories stack up for planning at an overall level: Nearly three quarters of yoghurt purchases are planned down to brand or even to variant (flavour/sku/format) within a brand. Under 10 percent don’t plan to browse or buy yoghurt before entering the store. Everyday cheese looks nearly identical to this. So the challenge here is getting more browse and interruption. Specialty cheese still has around 60 percent planning to buy down to brand or variant, and only under 10 percent on true impulse, but specialty cheese has a much higher proportion of shoppers who decided to browse in store based on how the cheese displays look. So the trick with specialty cheese, to get both more browse and conversion, is attractive displays, but with logical layouts, and incorporating education elements to help those who aren’t particularly familiar with the category.
Who’s buying the dairy, and who for? With the exception of kids’ yoghurt, the majority of yoghurt is purchased for adult self consumption. Women will tend to buy two variants for themselves; both a ‘weight management’ or low/no fat variant and a more taste/indulgence based one. Men on the other hand tend to think “no fat means no taste”, so their preference and purchase tends to be for full fat yoghurt variants (we also see males overindex in custard and dairy desserts – more treat and full fat based products). Self consumption
featu re indicators also help with pricing strategy – typically the more for self, the less price sensitive the product because of the element of self-worth, reward and treat. Everyday cheese, on the other hand, is only bought around a third of the time for self consumption. More than half of everyday cheese is bought for family, kids and/or partner. It is typically bought by women for the household. Specialty cheese is a different story altogether. About 35%-45% of specialty cheese is bought for self (‘cheese fiends’), over 20 percent is bought for entertaining occasions, and nearly 20 percent is bought for the partner. Kids
don’t really figure in specialty cheese. Upmarket grocers in New Zealand, such as Nosh, would index even more highly on self/cheese fiend and partner purchases (at the expense of kids and entertaining). Given both the high levels of self consumption coupled with the shopper tendency to serve ‘better’ brands and products when entertaining, we have found specialty cheese to be one of the least price sensitive dairy categories. In conclusion, it should be evident from these observations that whilst white milk and everyday cheese operate similarly, there are opportunities within yoghurt (particularly gender differentiation) and specialty cheese
(layout, display, demonstrations and tasting) that differentiate them from other dairy categories. This means there are additional category opportunities for store clustering and segmentation based on different shopper profiles. Dairy isn’t just dairy. * ShopAbility Surveys Australia 2010-2011.
Norrelle Goldring is joint director of ShopAbility. She is a category and channel specialist with 20 years’ experience in FMCG and retail across manufacturer, retailer and agency roles with companies such as Diageo, Coca-Cola, and Goodman Fielder. Email her at norrelle@ shop-ability.com.au.
ShopAbility specialises in understanding and applying how and why people buy in retail environments and throughout the purchase cycle. The ShopAbility offer extends across Shopper Insights, Strategy, Implementation, Capability and Training.
Annette Piercy M: 027 300 8010 Freecall: 0800 300 8010 E: annette@shop-ability.com W: www.shop-ability.com
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Reducing salt in our diets
Photo: thinkstockphotos.com
The industry is making steady progress, finds Katherine Rich.
S
alt is the world’s oldest food additive and a necessity for human life. It has influenced human existence since before recorded history, when humans learned of its role in food safety and preservation by slowing down spoilage. At the end of the 15th century, Portuguese and Spanish fishermen were among the first to use it commercially, salting the cod caught in North American waters to preserve it for sale in Europe. It was because of salt’s special qualities that as far back as 10,000 BC it was traded ounce-for-ounce for gold, and Roman soldiers were paid partly in salt (referred to in Latin as salarium, the origin of the word salary). Salt is no longer essential for preservation to the same degree, but it still has an important role in food production, particularly by making foods appealing by enhancing other tastes. It makes sweets taste sweeter, it makes bitter foods, such as chocolate and
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broccoli, delicious, and it enhances colour, texture, appearance, and aroma. Importantly, humans need a certain amount of it to survive because we can’t produce our own sodium or chloride, and salt (sodium chloride) is required for blood, sweat, digestive juices and efficient nerve transmission. Despite the body’s need for salt, most New Zealanders consume well in excess of what is needed.And there’s little doubt that consuming too much over a long period can lead to health problems in the form high blood pressure, which is a risk factor of cardiovascular disease. The food industry in Australia recently came under attack after a report by the George Institute for Global Health found that the amount of hidden salt in everyday foods rose by nine percent between 2008 and 2011, prompting the institute to renew its push for a reduction across numerous food categories. But it failed to acknowledge that many sectors had been successful in reducing the sodium content. In New Zealand, the need for less salt in food is no different. Our average daily intake is 9.5 grams a day (the same as Australia), compared to the World Health Organisation’s recommended five grams. The Heart Foundation says some 75 percent of daily intake comes from processed foods. That’s where the food manufacturing industry comes in. So what is the industry doing? Well, food companies have been aware for some time that we consume too much salt, and have been working on reducing it in products for more than a decade. Bread reformulation has
taken place quickly, and latest figures show manufacturers have reduced salt in many brands by up to 15 percent, removing about 150 tonnes from the bread supply each year. Cereal reformulation has achieved reductions of between five and 25 percent, removing hundreds of tonnes of salt each year. One company has reduced levels in its main products by 20 percent, helping in a reduction of 276 tonnes from its entire range. Even in the pie sector, one major manufacturer has made significant reductions in not only salt, but also saturated fat.
Collaboration and good progress Of late, the industry has been working alongside other stakeholders by way of the Heart Foundation’s HeartSAFE programme. This collaboration of manufacturers, food industry associations, and health and regulatory agencies supports the work already done by manufacturers, and further good progress is being made. The bread industry has a group working on further reductions, while cereal manufacturers are continuing to reformulate products, working towards sector-wide guidelines for 2014. HeartSAFE has also started work on processed meats, with manufacturers setting guidelines for reducing salt in sausages, ham, and bacon by the end of next year. One major sausage manufacturer has already reformulated to ensure its entire sausage range complies, more than a year ahead of target. But you can never please everyone, and some activist groups still believe progress isn’t fast enough and regulation
fgc is needed. Such calls are, however, often simplistic and unrealistic.To begin with, it’s almost impossible in some cases to remove salt from the manufacturing process because of huge variations in foods and their processing. That’s one reason why no country has regulated to remove salt from food. Another reason is that people like the taste that salt produces, and that means its removal has to be done gradually, almost by stealth. Taking, say, five percent of salt out one year and another five percent the next gives palates time to adjust. If it doesn’t happen that slowly, consumers will reject the lowsalt options and the whole exercise will have been in vain. Overseas experience shows that such reduction models work
best, and that is an approach the Heart Foundation agrees with. Certainly the finger-pointing and demonising of companies by activist groups that characterise campaigns in the UK and Australia are not approaches that are likely to work in New Zealand. Public debate around food tends to swing from fat to salt to sugar and back again, but the issues remain the same.You can’t get away from the good nutrition principle that too much of anything is not a good thing, and that demonising nutrients can be confusing to consumers genuinely trying to follow a healthy diet. Working collaboratively is the way to go, and the Ministry for Primary Industries has given credit to some in-
Katherine Rich, CEO, NZ Food & Grocery Council. Email: Katherine.rich@fgc.co.nz
dustry groups for front-footing the issue without a lot of pressure being needed. Industry must continue to show progress to ensure calls for regulation do not gather any sort of momentum. So far, progress has been excellent, and some companies must be congratulated. But they cannot continue to bear the responsibility of the whole industry. Everyone needs to take some action and responsibility, because a combined effort is needed. More can be done, so let’s make sure progress is on-going. If there is an opportunity for companies to reduce salt levels and maintain the appeal of their products, they should be doing it. Above all, New Zealanders should be considering their salt intake to benefit their health.
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This smile is sustainable. There are many good reasons to work with Abilities Group, like great results, competitive rates and our ongoing commitment to recycling and sustainability. But most importantly, when you outsource to us, you’re giving someone a reason to feel proud and valued, and that’s something truly worth sustaining. Talk to us about your outsourcing requirements 09 444 0611, or visit www.abilities.co.nz Enriching the lives of people with disabilities.
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The Madrid Protocol HGM’s legal experts explain a new tool for overseas brand protection. Photo: thinkstockphotos.com
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ew Zealand is only a few small steps away from implementing the Madrid system for the international registration of trade marks. This has previously been untouched water for many local businesses which have been prohibited from exploring the opportunity for international trade mark registration due to the cost and complexities involved. However, the new Madrid system provides for a more streamlined process, which has several advantages both from an administrative and cost perspective.This will give New Zealand businesses the opportunity to protect their brands in multiple countries and is part of the Government’s larger strategy to encourage businesses to export and grow. The Madrid Protocol was adopted into New Zealand law by virtue of the Trade Marks Amendment Act in September 2011. Regulations for implementing the Protocol are currently being drafted and these are expected to be in force by the end of this year. This is seen to align New Zealand’s trade mark system with the trade mark systems of our top major trading partners. In order to file a Madrid filing, the New Zealand trade mark owner must have first applied for, or registered, the mark with the New Zealand Intellectual Property Office (IPONZ). Following this, the owner can submit a single application to register that same mark in Australia, China, Japan, the European Union, the United States and other members of the Madrid Protocol. In order to deal with Madrid 32
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Protocol filings, IPONZ has taken steps to update its online case management system. These improvements make New Zealand a world leader in managing such filings via a completely online process. Once the international application form is submitted online, it is forwarded via the World Intellectual Property Office (WIPO) to the local trade mark registry in each country covered by the application. The application is then considered separately by each country. A successful application will receive a single international registration (albeit applicable in different countries where it has been accepted).
Reduced cost The main advantages of the Madrid system are two fold. One being the reduced costs and formalities involved in registering trade marks overseas. Currently, if a New Zealand business wanted to secure trade mark protection in countries to where it exports its goods, it would have to file individual trade mark applications, each with their own administrative and legal fees, which in turn is often a costly and time consuming process. This prevents many small businesses from taking such an approach, rather opting to rely on whatever common law rights it may have in that country. Under the Madrid system, the total spend on registering trade marks overseas is reduced. There is only one initial application fee and the added bonus of IPONZ’s improved online management system is that it will be one of the first OECD countries in the world not to charge a fee for certifying and transmitting international trade mark applications.
Further, in straight forward cases it can cut out the need to appoint local agents in each country to deal with the local registration office. The second main advantage is the relative ease of maintaining the international protection subsequent to achieving successful filings. Only the home country registration needs to be renewed, and changes such as change in ownership or in the name or address of the holder, can be recorded in the international register through a single procedural step. In addition, maintaining an international registration is also made easier in terms of the renewal process, as registrations of the same mark in different countries will share the same renewal date. However, the Madrid Protocol does have some limitations. An important one is that it will only apply to those countries who have also signed up to the Madrid Agreement and/or Protocol (which as it stands boasts 87 countries). Therefore, if your country of export is one of those outside of that list, for example, Canada, Hong Kong and Malaysia, then you will not be able to take advantage of the system. The quality and strength of the New Zealand trade mark also plays a big factor. It is crucial to get the formalities of the basic New Zealand application right and so amendments might need to be made to very old or insufficient marks to meet the requirements of the country of intended registration. For example, the specification of the goods and services in a Madrid application cannot be broader than the goods and services in the home country application or registration. Further, if the
featu re home country registration or application is cancelled, withdrawn or not renewed during the first five years, every international registration based on that home country registration or application becomes invalid. New Zealand business owners who are exporting to countries which are members of the Protocol and who have an outward/consumer facing brand would potentially benefit the most from an international filing using the Madrid system. Registering a trade mark in foreign markets gives a company the exclusive right to commercialise its products in those markets. This exclusivity means that the owner can license the trade mark to others in the country. For example, if the company wishes to franchise the business or engage in merchandising. A trade mark will also provide protection against counterfeiters, which may be of particular concern in certain countries. Further, it will prevent any third par-
ties accusing you of breaching its rights in the country of export, which can prove to be very costly and result in the company’s export strategy having to be re-thinked. Furthermore, just as it makes it easier for New Zealand trade mark owners to register their rights overseas, it also opens up entry for foreign trade mark owners in member countries to register their trade marks in New Zealand. Some have expressed fears that this is going to lead to a more cluttered trade mark register and oust the rights of many New Zealand companies who are currently using these marks but have not filed trade marks. This makes it even more important for businesses to take note of the new system and to seek advice as to how it may affect the strength of their brand(s). For small and medium sized enterprises, the Madrid system makes the possibility of protecting trade
marks in a large number of countries a reality. The experiences of other countries that have joined the Madrid Protocol indicate that it will have a significant effect on the management of multi-national trade mark portfolios belonging to New Zealand companies and to foreign companies doing business in New Zealand. However, ultimately trade marks should be evaluated on a case by case basis to ascertain whether a Madrid application would be the most effective way to protect a particular mark in specific international markets. Mark Gavin is a partner at law firm Hudson Gavin Martin, which specialises in intellectual property and technology law. Also contributing Stephanie Melbourne, solicitor of Hudson Gavin Martin. Email: mark.gavin@hgmlegal.com.
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33
cate go r y c h e c k
Health & Beauty Aisle The personal wash category is worth more than $85 million dollars and keeps on growing. Suppliers shared their latest product updates with FMCG.
I Photo: thinkstockphotos.com
n a highly competitive category, crowded by big international brands with big budgets, locally made Health Basics is a Kiwi success story. Already claiming the Number 2 position in body-wash Total Key Accounts, and Number 3 in hand-wash*, the brand is set for exciting times and growth ahead, having recently begun the roll-out of its refreshed brand look, claiming a new and differentiated proposition across its core 25 body-wash, liquid handwash and bar soap products, says senior brand manager Suzanne McKandry. “Following extensive consumer research, the new Health Basics story delivers to consumers what they have been asking for – a unique and affordable New Zealand made range,” she explains. But the range offers more than just being made in New Zealand.
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FMCG NOVEMBER 2012
“New Zealand has an incredible flora and fauna and the re-launch sees many iconic NZ ingredients come to life as the hero ingredients in our product range – manuka honey, pohutukawa, kawakawa, NZ olive and avocado oils and horopito to name a few, with the entire range now enriched with the super hydrating gel derived from the harakeke flax.” But it’s not just about what’s inside. McKandry says: “Historically with limited marketing spend, Health Basics has relied on ‘what’s been inside the bottle’, but in a highly sensory driven category, purchases are not just made on product functionality alone – we all know a soap will clean, but we have been inspired by the bigger thought of refreshment – for ourselves and our homes. “We are confident that our new pack forms provide a powerful and
per sonal wash
NEW ®
Foaming Hand Soap UÊ1 µÕiÊv À Õ >Ì ÊëiV > ÞÊ`iÛi «i`Ê LÞÊiÝ«iÀÌÃÊ vviÀ }ÊÌ iÊÃi à À > ÊiÝ«iÀ i ViÊ vÊv > }Ê> `Ê> Ì L>VÌiÀ > ÊLi iv Ì
THE BREAKDOWN Current MAT to 7 October 2012 Total Personal Wash: $85.046m Value % Chg vs YA 4.4 T. Bath Additives: $1.826m Value % Chg vs YA 19.3 T. Bodywash & Shower Gel: $34.474m Value % Chg vs YA 7.5 T. Hand Sanitizers: $2.662m Value % Chg vs YA -11.9 T. Liquid Handwash: $18.342m Value % Chg vs YA 4.5 T. Solid Soap: $27.742m Value % Chg vs YA 1.7
UÊ iÀ >Ì } ÃÌÊÌiÃÌi`Ê UÊ-ÌÀ }Ê >À iÌ }ÊV> «> } Ê« > i`Ê V Õ` }Ê/6 Ê> `Ê*, /
* Nielsen New Zealand ScanTrack (Databank)
disruptive billboard on shelf, but importantly many of the evolutions consumers will see, are the direct result of consumer feedback and how our products can add value to their daily routines.” The 400ml body-wash product is now downwards facing as consumers believe they receive more value in using the contents fully – but with many downwards facing products on the market, if the lid is not closed properly they leak and end up all ‘gunky’. The new, refined 400ml includes a NOVEMber 2012 FMCG
35
Increase your Shop Ability.
cate gor y check clever non-drip valve inside the cap, so there is no mess and no waste. “We are aware there are many humble house proud consumers out there that don’t want their homes cluttered with multiple branded images. Our new look pays respect to these consumers with the introduction of our new 250ml hand-wash, where the labels are entirely and easily removable, revealing a subtle de-bossed symbol on pure white; clean and fresh in every way,” says McKandry. “Supporting the great new look in store, will be an exciting media and consumer engagement campaign,” she adds. *Aztec, Dollar Share, MAT 9/9/12
How & why people buy - what it means for your business. ʇ Shopper Research ʇ Category & Channel
Development
ʇ Shopper Marketing Strategy ʇ Business Strategy ʇ Performance Improvement ʇ Training ʇ Capability & Measurement ʇ Structure & Process Change ʇ Retailer Relationship
Strategy
shop-ability.com Annette Piercy Group Account Director NZ Ph +64 27 300 8010 annette@shop-ability.com
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FMCG NOVEMBER 2012
Earthwise “The Earthwise body range is the natural way to natural beauty, created for your health, your family and your world around you,” says Rachel Beattie, marketing manager. “We make all our products environmentally beneficial and ethically sound because we know that if you take care of nature, nature takes care of you. The Earthwise body range contains no parabens, artificial colouring, toxic petrochemicals, lauryl sulfates and no animal additives. All our products are grey water and septic tank safe – a gentler choice for you and the environment.” Earthwise products are made and manufactured in New Zealand. Earthwise has launched a hair and body care range that makes it more affordable for New Zealanders to care for themselves, their families and the environment. Enriched with fragrant oils and extracts such as aloe vera, manuka honey, cedarwood and coconut, the plant-based products are gentle and effective. “The range includes shampoos and conditioners, body washes, hand washes and natural bar soaps and all are available in supermarkets at a fraction of the price of comparable New Zealand-made natural products,” says Beattie. The Earthwise body range uses
only natural fragrance oils and extracts, and there are also fragrancefree options for people with extra-sensitive skin. The Earthwise Fragrance-Free Natural Soap, for instance, is enriched with oatmeal and olive oil to leave skin feeling cleansed. All products come in recyclable packaging – a gentler choice for the environment. In May 2012 Earthwise launched the following body wash products into grocery (all 400ml RRP $6.99): • Earthwise Energising Grapefruit & Aloe Vera Body Wash – a refreshing, fragrant blend aloe vera extract enriched with zesty grapefruit essential oil to cleanse and nourish skin. • Earthwise Nourishing Coconut & Manuka Honey – a gentle formulation enriched with coconut and manuka honey fragrance with lavender essential oil to nourish skin. • Earthwise Fragrance Free for Sensitive Skin – a fragrance free formulation that gently cleanses and nourishes with added Vitamin E to help soften sensitive skin. Beattie comments:“Building on the success of our home care range, the consumer demand for the Earthwise body range has exceeded internal expectations. Consumer feedback has also been very positive.” What are the consumer trends in this category, in her experience? Beattie says: “The world is becoming increasingly aware of the environment and the impact that we are having on our planet. People are seeking out and using products that are friendly to the environment. There is a general perception that to be ‘green’ is expensive, but Earthwise have developed a model that makes being ‘green’ more affordable to the every day shopper. Making a positive contribution to the environment no longer needs to be an expensive exercise. “Customers who do purchase environmentally friendly products want to know they are purchasing authentic products from a credible
per sonal wash “Consumers are becoming increasingly more savvy and are demanding to know what ingredients are in the products they are using in both their home and on themselves and their families.� Rachel Beattie, marketing manager, Earthwise brand. They want to be sure that what they are buying is not a ‘green wash’, essentially a product that says it’s green when it is not. “Consumers are becoming increasingly more savvy and are demanding to know what ingredients are in the products they are using in both their home and on themselves and their families. There are many products, particularly in natural skincare that use the word ‘natural’ or ‘organic’ in their brand that may contain organic
certified fragrances, or extracts, but the base formulation is essentially a petro-chemical base.� Earthwise is a family-owned New Zealand company with a proud 48-year history of creating high-quality products from natural ingredients that are gentle on people and the environment. “Tom Robinson, the founder of Earthwise first started making plant based products in 1964, so we have a wealth of experience and knowledge in this industry,� says Beattie.
The company’s environmental commitment was recognised last month when it took the number seven spot on the inaugural Green 50 List compiled by research company New River. The list ranks the top 50 commercially successful companies in New Zealand that are improving the environment. Earthwise was the highest ranked company of its type on the list (see newriver.co.nz.). Source: Aztec
$VTTPOT Â… XXX Q[DVTTPOT DP O[ Â… O[FORVJSJFT!Q[DVTTPOT DPN NOVEMber 2012 FMCG
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What’s Hot BEAN SUPREME DELIVERING INNOVATION
Charlie’s Old Fashioned Quenchers
Introducing Bean Supreme’s Vegetarian Mince in a readymade Bolognese sauce. Convenient & versatile, just heat and add pasta or potato to make family classics like lasagne, spaghetti bolognese or cottage pie in record time. Adding innovation into the vegetarian category to attract new users such as the fast growing ‘meat reducers’ segment. Gluten Free, Preservative Free, No Artificial Flavours, Healthier protein alternative.
Charlie’s Old Fashioned Quenchers have unleashed a new look for summer. With seven fantastic flavours there’s one for everyone! Orange & Mango, Limeade, Raspberry, White Peach & Passionfruit, Lemonade, Blackcurrant and Sicilian Blood Orange. Available in your supermarket chiller in 500mL and 1.5L variants.
Please contact your LHF rep for details or email info@lhf.net
What’s Hot
Vitasoy VitaCafé – soymilk for the home barista
The new VitaCafé from Vitasoy has been crafted especially for coffee and packaged for the home barista; available in a 3 pack, with 3 single 240ml serves. VitaCafé is 98.5% fat free, gluten free and the convenient 240ml pack size makes it ideal for single serve flat whites at home and is great for travelling, ensuring a delicious soy coffee is not far away. Contact details: Please contact your Lion Dairy & Drinks representative or visit www.soy.net.nz for more information.
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FMCG NOVEMBER 2012
For more information email office@charlies.co.nz or phone: 09 837 6740
Dairy free indulgence • Dairy & Lactose Free • Gluten Free (custard and desserts only) • Cholesterol Free • Low in Saturated Fat • Added calcium and vitamins • Whole soy bean • Non-GM soy bean • Suitable for vegetarians and vegans • Long shelf life • Great taste
Contact: Greg Smith at Real Foods Ltd (09)256-4260. gregs@realfoods.co.nz
What’s Hot
Yoplait’s Regular and DeLite ranges have been completely redeveloped with an exciting and vibrant range of delicious yoghurts to suit the whole family. The new formulas include a new real fruit flavour range and come in distinctive new packaging, including bold new transparent 1kg tubs for goodness and flavour you can really see. For more information please contact your LION Dairy & Drinks representative or call 0800 730 732.
Portabello Plus – now available with Herb & Garlic Oil sachet • Portabello Plus is a great way to add flair and flavour to any meal • Just brush & bake for 8 to 10 minutes • Ideal for the BBQ • Bright orange tray to attract new consumers to the mushroom category • Mushrooms are kiwi’s third most popular vegetable • Portabello mushrooms make a perfect vegetarian option for burgers and meatless meals. For further information please contact the Meadows Sales Team: Mark Santy (Southern Region) 0272 202 452 Tracy Scott (Central Region) 0274 972 823 Zane Hutching (Upper North Island) 0274 859 826 Yvonne Clyne (National Sales) 0272 160 900.
The Ultimate New Temptation
The juice of organically grown apples from the Hawkes Bay has been concentrated into a full bodied apple syrup. This has been gently stirred into our probiotic natural yoghurt to create deliciously flavoured, old fashioned apple tasting yoghurt. With breakfast cereals or fruit and dessert instead of cream, Biofarm Wild Apple Yoghurt will delight children and adults alike. Contact Cathy & Jamie Tait-Jamieson info@biofarm.co.nz
Lotte – Korea’s Favourite Sweet Snack Oriental Merchant is proud to be given the exclusive agency for Lotte snacks for NZ mainstream supermarket business. With stock arriving early November, it has been timed to meet the Christmas demand for the affordable treat market. The initial range will include the famous Choco Pie, Custard Cream Cake and Pepero chocolate sticks.
What’s Hot
YOPLAIT NEW RANGE, NEW TASTE
For more information on Lotte products please contact: Oriental Merchant Pty Ltd Tel 0800 10 33 05, Fax 0800 10 33 11 Email: nzenquiries@oriental.com.au Website: www.oriental.com.au NOVEMber 2012 FMCG
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g rocer y b us ine ss Product recall seminar GS1 New Zealand, in association with the FGC, is hosting a ProductRecallnz information seminar on 29 November in Auckland. Since the system was launched in late July, more than 130 companies have registered. Whilst this is a good start, there must be a sector-wide commitment from businesses to register for the service in order for the sector to fully benefit from this industry-led initiative, said a GS1 spokesperson. Without this support, ineffective manual processes will continue, which undermine the overall ability and strength of the sector to
react to these adverse events. Seminar speakers will include Andrew Coleman, deputy director general, compliance and response, Ministry for Primary Industries, and retailers and suppliers represented on the ProductRecallnz project team. The event will be held on Thursday 29th November 2012 (8.45am – 11.30am) at the Novotel, Auckland International Airport. To register email pauline.prince@gs1nz.org. There is no registration fee to attend this event. l
Fleet Safety Award for CCANZ The Australasian Fleet Management Association has congratulated Coca Cola Amatil NZ (CCANZ) on receiving the AfMA 2012 Fleet Safety Award and on its continuing efforts for a safer fleet. Each year in New Zealand approximately 100 people die and 200,000 workers are injured in workplace related incidents. George Adams, CCANZ’s managing director, joined 100 other business leaders in a pledge to take personal responsibility for making health and safety a vital part of the business. This ‘Zero Harm’ strategy was adopted by CCANZ in 2010 and a two-year plan developed and implemented to bring about real change in the safety outcomes of CCANZ’s fleet. A seven-stage process was developed which emphasised the importance of leading by example and accountability. Senior management engaged in all aspects of driver training initiatives and smaller teams were established across the business to discuss and resolve safety issues at a local level. Driver training now occurs prior to employment; periodically during the term of employment and post car incident. CCANZ’s contract drivers must undertake the same training requirements. Various methods of communication are used to enforce the safety culture, including branding, videos, an E-drive campaign and the safety mascot, Skivvy. Procurement policy has changed to mandate the purchase
Each year in New Zealand approximately 100 people die and 200,000 workers are injured in workplace related incidents. 40
FMCG NOVEMBER 2012
George Adams, managing director CCANZ and Catherine King, national health and safety manager with the award.
of 5-star safety rated vehicles. Drivers are held accountable for their behaviour through a policy of monthly vehicle inspection reports and rigorous reporting requirements post incident occurrence, which includes a discussion about each incident at a monthly meeting chaired by the MD. The commitment to the Zero Harm culture has resulted in a 31% reduction in the incident rate and more than $100,000 savings in fleet costs since 2010. The cost per incident has also dropped by almost 40%. In addition, there has been a dramatic reduction in lost days due to injuries. The new policies and procedures are reviewed on an annual basis and the review is included in discussions at the Zero Harm team meetings at a local level. The message of Zero Harm was driven home during the Christmas period in 2011 through the launch of the ‘Thinksafe + Drivesafe = Homesafe’ message, including parking a wrecked vehicle at the entrance to the Auckland head office. Senior management are engaged at every stage in this project. l
g rocer y busi n ess Trade fairs in India grow to meet demand India is booming and one of the key factors behind its brilliant economic growth is domestic demand. This means massive opportunities for packaging, food processing and beverage companies. The trade fairs International PackTech India and drink technology India (dti), held in Mumbai from 6-8 November 2012, offer a unique platform for producers in India and international suppliers of machinery. The organisers of the event, Messe München and Messe Düsseldorf, joined forces for the first time in 2010, attracting more than 6000 trade visitors. Now the range on offer has expanded to meet the growing demand; from 200 exhibitors covering over 8000 square metres of exhibition space in 2010, to 12,000 square metres in 2012 providing space for 300 exhibitors. Mumbai is expecting exhibitors and visitors representing the international packaging, printing, processing, beverage, food and liquid food industry. Rajesh Nath, managing director at the German Engineering Federation’s (VDMA) Indian office in Kolkata, sees the Indian packaging industry growing at an annual rate of 11 percent: “The industry is likely to reach a turnover of 15 billion euros in 2015. The main motor of growth is the food and beverage sector. The area of food processing could double within the next four to five years, which will lead to enormous demand for packaging material as well as for process technology.” In 2011 a total of 21.5 million tons of processed and packaged food were sold in India according to the VDMA, putting it just behind China as the second most important market worldwide. Market researchers expect turnover to grow by about 6% per year on average between 2011 and 2016. With a consumption of packaged food of almost 18 kg per-capita, the country still
In 2011 a total of 21.5 million tons of processed and packaged food were sold in India according to the VDMA, putting it just behind China as the second most important market worldwide. lags far behind others. Numerous government initiatives aim to pump over US$25b into the food sector and the necessary infrastructure by 2015. A German manufacturer and marketer of flavourings and functional ingredients is convinced that the Indian market for sophisticated food products and beverages is set to grow fast: “We expect the Indian ‘middle classes’ to double in number, from 100 million consumers at present, within the next five years, and we are already preparing ourselves for this growth right now, so that we are ready to serve these potential customers well,” says Declan MacFadden, president of Symrise Asia Pacific. In the fiscal year 2011/2012 turnover in the Indian packaging industry will probably exceed ¤11 billion, according to the Indian office of the VDMA. It has risen by 15% per year on average, for the past seven years, and this rate of growth is likely to continue to accelerate. l
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Thinking long term FMCG finds sustainability is a core business value for many industry leaders.
V
Villa Maria vines.
Fabian Yukich and Glenn Collings of Villa Maria with their awards.
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FMCG NOVEMBER 2012
illa Maria Estate was named Sustainable Business of the Year at the Northern SustainableBusinessNetwork Awards, recognising a wide ranging commitment to sustainable practices and environmental responsibility. The family-owned New Zealand winery also scooped the Large Business - Trailblazer award for its innovation and leadership as a sustainable wine business. Judges praised Villa Maria’s integrated approach to sustainability, pioneering efforts among major wine companies from organic production to the promotion of New Zealand’s ‘green’ story on the international stage. Villa Maria’s executive director FabianYukich says the award is affirmation that sustainability and smart business go hand in hand, a belief long held by the company’s founder and owner, Sir George Fistonich. Sir George’s unequivocal commitment to sustainable practices has shaped a culture that encourages all employees to reduce the environmental impact. “Leaving something for the next generation goes to the heart of what it means to be a family-owned business,” Yukich says. Yukich has championed sustainable practices at Villa Maria for more than 14 years and has been instrumental in making social, environmental and financial sustainability core values of Villa Maria Estate. “To be successful, you have to have the mentality to think long term. This award is proof that sustainability makes good business sense, as well as preserving New Zealand’s environment for
our children,”Yukich says. Villa Maria will now compete in the National NZI Sustainable Business Network Awards on November 22 in Auckland.
Renewable alternatives Yealands Estate, a privately owned winery in Marlborough, has made sustainability its core business value. Incorporating advanced green technology in every aspect of design and function and using energy as efficiently as possible – including renewable alternatives – is an essential part of that. Yealands Estate received carboNZeroCertTM certification in April 2009; it is the largest winery in New Zealand to achieve this status. The winery and vineyard is also accredited under Sustainable Winegrowing New Zealand. The company’s approach to energy management won it the EECA small-medium sized business award in 2009, with judges praising the sound commercial basis underpinning its work. Yealands Estate has been selected as the only New Zealand company and the only winery to be shortlisted in The International Green Awards (Most Sustainable Medium Organisation category of the awards), which will be held in November. Like many in the food and beverage industry, the winery uses both cooling and heating processes. Using heat recovery, this environmentallyconscious winemaker takes waste heat and uses it elsewhere. This has helped cut its energy costs by 50
featu re percent and boosted its brand at the same time. Yealands’ energy innovations include: • Solar-reflective, high insulation cladding on its new winery • Recovery and recycling of heat energy from refrigeration • Cool night air used to chill wine, reducing need for refrigeration • Individual temperature control on winery tanks • Motion sensors to control lighting and air-conditioning • Installation of solar panels and wind turbines. Owner Peter Yealands says the winery is now very close to being selfsufficient in terms of energy requirements: “We are only one wind turbine away from our goal.”
Minimising carbon footprints Foodstuffs strongly believes in the value of taking a sustainable approach to retailing with eight active work streams within its ‘National Sustainability programme’, ranging from energy efficiency to waste minimisation. The commitment to making progress in all areas has recently been reinforced through the appointment of a national sustainability manager, Mike Sammons, who came from the recognised sustainability consultancy URS New Zealand. Foodstuffs is focused on reducing energy usage and improving reporting. Sub metering installation will radically improve the business’ ability to monitor energy use and to identify areas for future savings. Sometimes this just means changes in behaviour, in other instances this means looking at new technologies such as LED lighting solutions. Waste is another priority area for Foodstuffs. Despite much of what goes out the ‘back of store’ being recycled already, Foodstuffs is striving to further minimise the volume of waste going to landfill and will be working with service providers in 2013 to identify further improvements to current systems. Examples include the development
of store-based waste minimisation plans and improved reporting of waste volumes. Foodstuffs’ commitment to finding more climate friendly refrigerant gases for its stores has resulted in the installation of the latest ‘transcritical’ refrigeration systems in stores in both Wellington and Auckland. Such new technology potentially offers the opportunity to significantly reduce refrigerant related greenhouse gas emissions and the performance of the new systems will be monitored closely. On the packaging front, Foodstuffs is now actively evaluating the sustainability credentials of new packaging options through the application of life cycle analysis methodology. The results help inform the final decision making and guidance is provided to store operators to help ensure appropriate packaging choices are made within store. Progressive Enterprises is also embracing sustainability where possible. The recently opened Countdown Silverdale – a flagship store in the area – has been carefully designed and constructed to reduce its impact on the environment. It features energy efficient CO2 refrigeration plant systems, night blinds on refrigerated cabinets, sliding covers on freezers, heat reclaim off the refrigeration coils and energy efficient lighting to help minimise the store’s carbon footprint. Countdown’s sustainability strategy outlines a comprehensive programme to limit environmental impact. For instance, Countdown is committed to achieving an overall 40 percent reduction in the projected carbon footprint by 2015. Every new supermarket built incorporates sustainable design guidelines such as those seen in Silverdale and the use of natural light in roof panels where possible. All these design features mean that Countdown is on target to achieve a 25 percent reduction in CO2 emissions per square metre in new stores (compared with older ones).
Across all Countdown stores these initiatives have achieved a 10 percent reduction in electricity usage per square metre since 2006/2007. A waste audit programme for all stores and distribution centres encourages greater recovery of recyclable plastic and cardboard. In 2010/2011 Countdown recycled 57%, compared to 48% in 2006/2007. The company car fleet was converted to fuel efficient diesel and petrol vehicles resulting in a 20% reduction in emissions. Combining all these improvements and higher levels of renewable power has resulted in Countdown’s carbon footprint (for FY2011) being 137,835 tonnes of CO2 emissions, which is below the 2006 levels of 140,000 tonnes, despite the Countdown business having 15 percent additional selling space.
Foodstuffs’ commitment to finding more climate friendly refrigerant gases for its stores has resulted in the installation of the latest ‘transcritical’ refrigeration systems.
NOVEMber 2012 FMCG
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Pakworld’s milestone
P
akworld recently celebrated its 30th year in the printing and packaging industry. Its growth and longevity in a highly competitive marketplace is the result of the Pakworld directors’ re-investment in plant and machinery and the company’s ability to identify industry trends. Pakworld has recently completed FSC accreditation and is actively offering this to its customers who utilise FSC certified board. “The accreditation is important to our customers as it enables them to illustrate to consumers that their
Member of
packaging choices are ethical and sustainable,” says Adam Smith, North Island sales manager. Sainsbury’s in the UK has a sustainable business programme in place that aims for 100% supply chain traceability by 2020. Currently Pakworld can offer this with its packaging and as a result several export opportunities have come to fruition. “The sustainability movement in packaging continues to gather momentum and is often a topic of discussion when talking to new clients. Cartonboard packaging has a really good story and with use of FSC certification Pakworld customers can take advantage of this good story,” says Smith. Innovation is another aspect to the business where Pakworld has created some tangible opportunities. Pakworld has been actively marketing
QR codes as a means for customers to combine the physical world with the digital world and drive consumers to websites or online marketing campaigns. New Zealand is only just starting to embrace QR codes and utilise them to develop customer databases and add value to the point of sale customer experience. “While the uptake has been a little slower than what we anticipated, we expect that as our customers become more familiar with the capabilities of the QR code they will embrace the opportunities it presents,” comments Smith.
Tips for retailers • Create a point of difference with your packaging; don’t get lost in the crowd. If there is no brand loyalty the first sale will be impulse; the quality of the product will produce the second sale. • Employ a good packaging designer; a good design will pay for itself very quickly, while a poor design will cost money and potential sales. • If your product is New Zealand made, advertise it! New Zealand made products are trusted and in demand locally and internationally.
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Behind the scenes FMCG looks at the latest trends in refrigeration, maintenance and cleaning.
T
he importance of blast chilling is becoming more apparent in the hospitality industry with chefs now realising the many benefits behind the technology. SKOPE Refrigeration has recently started to see this awareness filter down into the FMCG and supermarket industry. Blast chilling quickly reduces the temperature of a product, retaining the quality, taste, volume, moisture and freshness of the food. The Irinox MF Plus Blast Chiller, distributed by SKOPE, has the ability to blast chill and shock freeze, as well as the ability to low temperature cook, thaw, regenerate, pasteurise and even proof breads and pastries.
The big advantage is that you don’t have to be there; it will work for you 24 hours a day, which enables better planning and less food wastage. In a supermarket deli, the Irinox Blast Chiller can be used for meats, vegetables, pastas, rice, lasagne, sauces, soups or breads. A good example of this is roast meat – instead of cooking an 8kg slab of beef which would dry out and have a 2-3 day shelf life, the meat could be cut into 2kg portions, blast chilled in an Irinox blast chiller, vacuum packed and then stored in a chiller or cool room to use as required. Vacuum sealed the beef would last three weeks, while tasting and looking exactly the same as it did three weeks earlier.
Food safety and hygiene can be precisely monitored. Irinox Blast Chillers remove the need to have food cooling on benches or having warm food sitting alongside cooler food in a conventional chiller. HACCP data recording figures can be downloaded and presented for food hygiene inspections. As well as offering a range of standard commercial refrigeration, SKOPE lead the way in the custom design of refrigeration solutions, whether they are complete product designs for global organisations, or one-off adaptations of existing products. SKOPE are increasingly seeing customers dictating the design requirements of their refrigeration. NOVEMber 2012 FMCG
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feat ure What’s new
Microfibre cleans without streaking to leave surfaces much cleaner and without residue build-up. “We are starting to see customers coming to us with ideas; this could be a change in coloured cladding to incorporate customers brands, incorporating refrigeration into the design of the supermarket checkouts, minor changes to existing products or a complete new product,” says Nigel Denby, NZ and Pacific manager refrigeration sales.
Call us today for a demo!
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Recent technology advancements by SKOPE’s design and innovation team have seen self-learning electronic controllers installed in its new range of bottom mount chillers. The ‘Fuzzy Logic’ technology detects traffic flow and door openings every half hour, remembering peak and low traffic times and variable business hours to ensure optimal energy efficiency – even detecting one-off changes to the pattern. The end result is a refrigeration cabinet that switches to active mode two hours before opening and changes to stand-by mode (when the temperature inside the chiller is moderated and the cabinet lights turned off) at the close of business – providing store owners with a huge potential saving off their energy bill. Also new from SKOPE is a range of energy efficient VF freezers. Designed to deliver greater performance, efficiency and reliability than ever before, the new range is up to 37.5% more efficient than the previous range, saving users up to $1425 per year (power saving is calculated based on 25 cents per kWh electricity cost).
Preventative maintenance Making time to do a little preventative maintenance, particularly as summer approaches, will benefit owners in the long-term. Simple
things, like not cleaning the refrigeration door seals could cause them to not seal correctly and result in increased power consumption. The majority of service calls are due to dirty condensers. Dirty condensers could lead to an increase in temperature and power consumption and in some cases failure of the compressor and other components. SKOPE recommends refrigeration cabinets are checked and cleaned by a service professional once every six months. SKOPE is a family owned company with an international reputation for innovative design and manufacturing excellence. Based in Christchurch, SKOPE employs approximately 385 staff at its design and production plant and has a sales team of 15 based across Australasia. With the largest design and innovation centre of its kind in Australasia, the SKOPE brand focuses on excellence, raising standards in design and performance, while lowering environmental impact.
Clean green Are you wanting to reduce cleaning costs for your business? Why not try microfibre? Greg Williamson, general manager at Packaging Plus, says recent research concluded that both microfibre materials and steam cleaning have a proven ability to raise levels of both aesthetic and microbiologi-
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featu re cal cleanliness, particularly when employed together as an integrated cleaning programme. Microfibre mops and cloths have a different structure to classical woven cloths. Microfibre is a manufactured fibre that is many times smaller than human hair. However, unlike hair, which is round, microfibre is extruded and has a flat shape which gives it an edge shaped like little ‘razor blades’.These fibres, with the help of a little moisture can then perform a very deep clean without any surface damage. The fibres cut and cling to the dirt rather than ‘moving the dirt’ as conventional cotton type cloths do. Cotton cloths rely on chemicals to loosen the dirt, whereas the microfibre cloths simply remove it. The microfibres are naturally statically charged and, because they are so small, they can reach into invisible crevices in surfaces that are inaccessible to conventional cleaning materials. Dirt clings to the fibres because of electrostatic attraction, capillary action, or a combination of the two. This results in the materials having a strong ‘suction effect’; they collect as much dirt as possible in just one wipe. Microfibre cleans without streaking to leave surfaces much cleaner and without residue build-up. Tests done on correct microfibre cleaning practices prove that a surface is more sterile after cleaning with microfibre and water, than cloths and chemicals, explains Williamson. This is because the microfibres are so small that they are able to hold on to the bacteria and it is only then released in the laundry process. Williamson says: “Contact Packaging Plus today for more information. We can offer you: • staff training • product support • reduced costs • improved hygiene.” Phone 0800 700 100, email info@packagingplus.co.nz, or visit packagingplus.co.nz.
Depend on us for expert advice. We are committed to building relationships that last and work with our customers every step of the way - from concept to installation, training and after care support. Contact us today to find out how we can help you.
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NOVEMber 2012 FMCG
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Look out for the brown M&M’s Hamish Marr, senior consultant FMCG – Sales & Marketing OCG Consulting Ltd
On rock stars, personality profiles and psychometric tests.
It’s one of those Rock ‘n’ Roll legends that turned out to be true. In the 1980s,Van Halen demanded, via a small clause in its tour contract, that no brown coloured M&M’s be allowed back stage at its concerts, otherwise it would immediately cancel the show at the promoter’s expense. What seemed like an outrageous demand from rock stars in an era of excessiveness actually had some real merit to it. For lead man David Lee Roth, it was all a test. Van Halen was one of the first bands to take big productions to the masses and would have nine 18wheeler trucks full of gear (in those days a maximum of three was considered the norm). Subsequently, there were often many technical challenges. Floors would sink in, girders above the stage weren’t big enough to support its lighting, and doors weren’t big enough to get gear through. So Van Halen’s contract needed to be long and extensive in the interests of public safety and the band’s reputation. The M&M bullet point was not listed under food requests but amongst technical specifications. The reasoning for this was quite simple, if any brown M&M’s were found David Lee Roth explained: “That guaranteed the promoter did not read the rider and we had
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to do a serious line check, because frequently we had safety issues.” When you are hiring, and more specifically interviewing, a similar approach could be used. Look for the themes and signs that there may be a bigger problem underlying. It’s the small things that we do that show everything we do. If people do not get along well with their manager, or have instances of conflict with their direct reports, then that needs to be explored in more depth. All too often people will make a brief reference to such things during an interview process and the interviewer will move through without ample exploration. While robust reference checking specifically against these concerns is one tool, the other is the correct testing. The Humm Wadsworth profiler is designed to understand an individual’s behaviours on the job, as well as their underlying motivators, drivers, and stress reactors. By gaining a deeper understanding of a person’s personality profile, you can truly motivate them to perform. The Humm Wadsworth profiler can ultimately assist with the selection of potential employees, as well as development and management of new and existing staff. Another theme that we find common, particularly in marketing and category roles is a real range in people’s analytical skill and their ability to deep dive into the data. Picking up the right cues in interviews, such as people talking about getting their analyst or brand manager to handle this level of analysis (even if it is that person’s job), should give cause for further exploration to validate the skill you are looking for. OCG can also access a range of psychometric tests and a number of cognitive and ability tests, including abstract reasoning, numerical critical thinking, and verbal critical thinking. This test is also a good way to assess a candidate’s negotiation skills. It can take only one person to seriously injure the culture of a team, all of us can probably relate to an occurrence here in our careers. Don’t underestimate the small hints and signs that there may be a bigger underlying problem. Re-check and test further. For more information on testing options, call us at OCG Consulting and we will connect you with one of our in house registered psychologists. Rock ‘n’ Roll people!
gs1
They’re your products! Dr Peter Stevens on barcodes, apps and surprises in the digital world. Obviously brand owners put a lot of emphasis with their retail trading partners about getting products onto shelves where consumers can make the choice to buy them. After all, having the most sophisticated promotional campaign to drive consumers your direction is useless unless the product is available on shelf! At the same time marketers are spending quite a lot of time and effort making sure that their presence in the online world is sophisticated and appropriately positioning their products. Many are also embracing social media channels to ‘hang out’ where their consumers are, in cyberspace. However, the strange thing is that many brand marketers have not done the ‘google search’ that presents the cyberspace ‘intersection’ of their physical products and their brand presence. I’ll explain what I mean. Please follow these simple instructions: 1. Crank up a web browser and simply type into the Google (or Bing – if you must) search field the barcode number (technically called the GS1 Global Trade Item Number) of one of your products. 2. Examine the results – are you surprised? 3. How correct is the information presented? 4. Ponder where the information that is presented on screen comes from? 5. Lastly, if you have an iPhone, please download from the app store any number of barcode scanning apps (eg, RedLaser, MobileTag, Decide, PriceCheck, Barcode, ShopSavvy) and scan the GS1 barcode on your product. 6. Repeat steps 2, 3 & 4 above.
I’m willing to guess that you were: • Surprised • Found that some of the information was either correct or missing • Confused as to where the information came from (because most searches do not come up with the brand owner website as their top hit!).
Dr Peter Stevens, CEO, GS1. Email: peter.stevens@gs1nz.org.
Certainly the issues and challenges of getting your product information out into the digital world are formidable and brand owners and retailers are scrambling globally to try to work out how to get on the front foot. There are approaches that make sense, are scalable and do not hand the control of your product information and brand to the anarchy of the internet. Want to know more? Find out at www.gs1.org/ mobile, or email us at GS1: info@gs1nz.org.
Fiona Hill Dale Rous Hamish Marr
Kevin O’Shannessey
www.ocg.co.nz | 09 377 7575 NOVEMber 2012 FMCG
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The longest summer drink Delmaine milkshake syrups reinvigorate a favourite Kiwi icon. Summer days are nearly here. Convenience stores all over the country are busy gearing up for the new season and stocking up on cool, refreshing treats. Since 1968, The Longest Drink In Town milkshakes and thickshakes with the iconic red and blue giraffe image on the side of the cups have been best sellers at dairies, ice cream parlours, cafés and takeaways. Nearly every Kiwi will have had a shake in one of these cups and the sight of one will bring back memories of walking home from the local pool on a hot summer’s day, Friday fish and chips wrapped in paper, or holidaying at the beach with family. Each memory triggered by the thought of slurping down a cold shake. This summer Delmaine, one of
partnership with Huhtamaki’s The Longest Drink In Town cups, Kiwis will be able to enjoy the classic summer shake in Chocolate, Banana, Lime, Vanilla, Caramel, Strawberry, Spearmint, Creaming Soda, or Raspberry flavour. The Longest Drink In Town milkshake syrups and milkshake cups are available from major wholesalers such as Gilmours, Trents and Moore Wilson. The Huhtamaki cup sells over 3.5 million units per annum and has done so for many years. Popular design feature There is no doubt that The Longest Drink in Town milkshakes are immensely popular among customers of all ages. The iconic giraffe image has even made an appearance on T-shirts.
The Huhtamaki cup sells over 3.5 million units per annum and has done so for many years. New Zealand’s best known food manufacturers, will release a range of milkshake syrups under The Longest Drink In Town brand. These are made locally with quality ingredients and come in six great flavours. In
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Doppel is a design studio led by Angela Vink, offering graphic and web design work for a wide range of Kiwi organisations. However, The Longest Drink in Town has become a beloved part of the studio’s business
too. About five years ago, Angela and her husband Hayden’s love of Kiwiana led to an idea to create a more ‘long-lasting’ version of the iconic paper milkshake cup. Huhtamaki (the trademark’s owners) liked the idea, and not only helped to develop the plastic cup, but also gave Doppel exclusive permission to develop and sell a range of other gift products featuring the friendly giraffe. Stocked by a retail network of around 45 design stores across New Zealand and Australia, and also available via an online store (longestdrink.co.nz) the range now includes children’s height charts, baby and adult tees, tea towels, magnets and badges, as well as the ‘Souvenir Cup Set’ that continues to be the most popular product. l
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Why fix something that isn’t broken? Trina Snow, executive director, NARGON.
Trina Snow finds a lobbying bill well intentioned, but fatally flawed.
First-term Green Party List MP Holly Walker has introduced a private member’s bill to register and regulate lobbyists. The stated aim is to “increase the transparency of decision making” by establishing a Register of Lobbyists, developing a Lobbyists’ Code of Conduct and providing powers for the auditor-general to investigate potential breaches of the code. At first glance, it seems hard to argue with. However, the bill is unnecessary, would be a bureaucratic nightmare and, most worryingly, would reduce freedom of expression and political participation. As an organisation which exists to lobby politicians and officials on behalf of members, NARGON has studied the bill closely and considers that it should not be passed, even with various amendments. The New Zealand Law Society, famously non-partisan and polite, published a scathing submission on the bill saying it was “legislation by slogan” – an unprecedented level of opposition from the group. Holly Walker argues, “the reality remains that some people do have a better chance of being heard than others and a lot of the time we don’t know who these people are or the extent of this access. A lot of the time, lobbying takes place behind closed doors, and there are no rules regulating lobbying activity.” However, this situation is common around the world, has existed in New Zealand for many years and there is no evidence that it is a particular problem here. While there are clear issues with the influence of business and union lobbyists in the United States and, to a lesser extent Britain, New Zealand lacks evidence of any widespread problem requiring the regulation of lobbying. Transparency International’s ‘Corruption Perception’ Index 2011 listed this country as the least corrupt in the world. It did not identify any need to regulate lobbying. The bill appears to be trying to fix something which
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is not broken. NARGON believes that most political arguments in New Zealand are decided on merit. It is not overly important which groups or individuals have championed them. Business New Zealand has pointed out that MPs often need information and advice from experts in a particular field so they can better understand how a proposed policy or law might work in the real world. Requiring everyone – both individuals and organisations – to file a return with the auditor-general before lobbying would be a bureaucratic nightmare. They rightly note that having a coffee with an MP in a café or inviting them to speak to a group would probably be covered by the bill.The Law Society confirms that a person lobbying without realising they were lobbying would be criminalised because it will be a “strict liability offence”. This confusing mess of red tape would, in their considered opinion, create a drop in participation in the political process. The Greens and Labour also appear to consider lobbying efforts by business and industries to be inherently different to lobbying by unions and environmental groups. The Law Society calls the proposed definitions “unprincipled and illogical” and Labour’s suggestion that unions be excluded is transparent, particularly given the high level of union involvement documented in the Constitution of the Labour Party. The Law Society concludes that “international reports and codes indicate [lobbying] is a highly complex area not amenable to legislation by slogan”. A number of similar jurisdictions have dropped the idea of lobbyist regulation after considering the full implications of the policy. Opposition parties have argued that the bill is the start of a wider debate. However, the Law Society argues the bill “is unsupported by any cost-benefit analysis or effective linking of the solution to the alleged problem, and lacks rigour in its drafting”. The Supplementary Order Paper from Labour, designed to fix some obvious flaws, actually makes the bill worse because, according to the society, “two of the amendments are palpably wrong and the third may be an improvement but needs analysis and context”. The lobbying law would add nothing to the political dialogue in New Zealand.
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Has your team been part of a charity event, opened a new factory, or dreamed up a colourful promotional activity? Send us your favourite photo and go in the draw to win a selection of festive goodies, worth $50. The team at gourmet Kiwi bakery Loaf Handcrafted Breads has been busy preparing some truly special treats for the festive season. Loaf is available from Farro Fresh, Moore Wilson’s, selected New World supermarkets, Smith and Caugheys and other speciality stores. Just email your high res image with a caption and your54 contact to: editor@fmcg.co.nz FMCGdetails NOVEMBER 2012
TV presenter Ju lie Le Clerc with at a Mastercla Oceanspray cr ss in Auckland anberry produc . ts
THE ALL NEW SPEIGHT’S FAMILY.
Tapping into a traditional channel
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Photo: thinkstockphotos.com
Manufacturers can now access processed weekly sales data from eight of the largest organised liquor banners. Traditional liquor retailers are becoming more organised and more organised banners are emerging in this space; Thirsty Liquor, Liquor Centre and West Auckland Trust are joining Liquorland, Superliquor, Liquor King, Henry’s and Glengarry in the fight to dominate this channel. Sales from traditional liquor outlets account for nearly a quarter of all alcohol consumed by New Zealanders in 2011; a significant portion of the marketplace. In New Zealand 35 percent of all alcohol was sold in supermarkets, 25 percent consumed in on-premise outlets such as bars, pubs and restaurants, and the remainder in other liquor outlets including convenience stores (see chart). For the first time, through Nielsen’s Defined Liquor Channel, we can view weekly sales data, at item level, for eight of the largest organised liquor banners equating to 430 stores. Combined with its supermarket coverage, Nielsen can now provide sales data for 78 percent of offpremise alcohol consumption. The importance of the traditional liquor sector is increasing rapidly, with both legislative changes and changes in consumption habits affecting the landscape for liquor retailing. In a flat sales environment, manufacturers and retailers need to understand the nuances within the liquor market and work smarter to find mutually beneficial revenue
growth opportunities. Shoppers have different expectations when shopping in different channels. While low prices and value for money are central concerns to supermarket shoppers, service, convenience and value for money are the most important attributes in traditional liquor stores – it is not just about price in this channel. Volumes sold on promotion in traditional liquor stores are considerably lower than they are in supermarkets, meaning, for manufacturers, this can be a more profitable channel. In addition, as liquor retailers become more organised, with more disciplined pricing and promotional strategies, there is more opportunity for manufacturers to see increased return on investment. Changing consumption patterns also favour traditional liquor outlets. The largest market segments – beer and wine – are flat or in slight decline, with 44 percent of people saying they now consume less beer than they used to. However, spirits and RTDs are enjoying strong growth, which provides a unique opportunity for traditional liquor stores. Within categories there are also shifts in consumption preferences. In the traditional liquor channel, craft beer is enjoying 13 percent value growth. Cider, a rapidly growing category, has a much broader range in the traditional liquor outlets than in supermarkets. Innovation in niche products, such as craft beer and cider, is imperative for value growth
Combined with its supermarket coverage, Nielsen can now provide sales data for 78 percent of off-premise alcohol consumption. and the liquor channel provides an ideal route to market. The launch of the Nielsen Defined Liquor Channel, providing accurate measurement of retail sales and insights for both retailers and
manufacturers, enables both sides to implement strategies to maximise their strengths, and returns on investment, in this channel. l Sources: Nielsen Homescan, Nielsen Media CMI, Nielsen Scantrack.
For further information contact David Hanson, Nielsen’s associate director, liquor practice. Email david.hanson@nielsen.com Nielsen Defined Liquor Channel. Manufacturers can now access processed weekly sales data from eight of the largest organised liquor banners. Retailers: Superliquor, Liquorland, Liquor Centre, Henry’s, Liquor King, Thirsty Liquor, Glengarry, West Auckland Trust. Coverage: 430 stores
november 2012 FMCG
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First ‘Sauvignoir’ launched Yealands Estate Wines has launched New Zealand’s first ‘sauvignoir’, a lighter, fruit driven red wine made primarily from Marlborough sauvignon blanc. Yealands Estate Wines’ owner and founder Peter Yealands, who has gained a reputation for doing things differently, says the wine has been developed to meet a growing consumer demand for innovative sauvignon blanc wine styles. “Whilst we are having enormous success with our sauvignon blanc on the international stage, we need to be mindful that consumer wine tastes continue to evolve and trying new wine styles is part of what makes wine consumption enjoyable for many. I am pleased to be leading the charge with this new and innovative wine style.” Interest in the 2012 Peter Yealands Sauvignoir has been significant, with the entire volume from the first vintage already allocated. The wine has been in development for over 12 months, during which time red grape varieties from all over the globe were experimented with; the
goal being a vibrant red coloured, full flavoured wine with a crisp, refreshing finish. “There has been a lot of speculation over the composition of the wine with some inventive ideas discussed. Whilst we have looked at new varieties and processes, our sauvignoir has very much been made using traditional wine making practices and then blended with a small amount of Teinturier, a red grape variety from Chile, providing the resulting vibrant red colour of the wine.” Yealands says Teinturier will only be used in the short-term, until a replacement can be grown on its Awatere vineyard. Sauvignoir should be served chilled. The 2012 Peter Yealands Sauvignoir (RRP $18.95) is available in Countdown stores nationwide. l
NZ Syrah Champion at international wine competition A Hawke’s Bay Syrah has come out tops in the Spiegelau International Wine Competition. The Vidal Reserve Series Hawke’s Bay Syrah 2010 took out the Champion Shiraz/ Syrah award and the Champion Wine of the Show. The judges describe the winning wine as deeply coloured with a nose of ripe, sweet tobacco and a gentle hint of cedar, powerful, yet with a luscious silky texture. The Vidal Reserve Series, which is part of the Villa Maria group, was made by winemaker Hugh Crighton. The wine retails at around $30 a bottle. Now in its second year, the Spiegelau International Wine Competition attracted more than 1100 New Zealand and offshore entries including wines from Spain, Portugal, France, South America and Italy. Overall, 16 trophies were awarded including Champion Wine of the Show and Champion Wine Producer, which was awarded jointly to Mount Riley and Villa Maria – two companies that did exceptionally well. Villa Maria achieved seven gold medals, six silver and 15 bronze, while Marlborough-based Mount Riley was awarded a medal for every wine it entered, including three gold, three silver and four bronze. In addition, Mount Riley won the trophy for Champion Pinot Gris.
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(L to R) Michael Jemison presents the Spiegelau joint Champion Producer Award to Matt Murphy (Mount Riley) and Dave Roper (Villa Maria Estate).
Chief judge, Mike DeGaris was joined by author and wine writer Ralph Kyte-Powell, international wine consultant Phil Reedman MW and wine consultant Meg Brodtmann MW. New Zealand judges included writer Jane Skilton MW, winemaking consultant Olly Masters, Simon Nunns from Coopers Creek and Warren Gibson of Trinity Hill. DeGaris says each judging panel sampled hundreds of wines over the three days. “We saw a diverse range of wines, many of outstanding quality. The methode traditionnelle, riesling, chardonnay and shiraz/syrah classes were highlights and many of these wines come at a very affordable price point.” l
A NEW GENERATION OF SPEIGHT’S. Speight’s has been fashioning award winning ales from our brewery since 1876. In that time we’ve learnt a thing or two about coaxing great flavours from a blend of New Zealand, and the world’s best hops and malts. Speight’s range of craft beers is a labour of love from our brew masters. In these select few ales we demonstrate the range of tastes and styles that can be achieved through skillful balancing of bitter hops and sweet malted barley. They’re a little different, they’re a little special. Try them with your mates, that’s the beauty of having a range of craft beer, you can find one that’s just right. — For more information contact Lion on 0800 10 72 72
New brand design for Speight’s A New Zealand icon with a nationwide fan base, Speight’s Gold Medal Ale is one of the country’s most popular beers and Dow Design was employed to ensure the new brand and packaging design reflects and retains the character to continue its reign. Tasked to ensure the longevity of the Gold Medal Ale, which is the heart of the Speight’s brand, Dow Design also developed the other sub brands into a cohesive unit to better communicate Speight’s core values. The extended Speight’s family represents over 20 years of product development from the brewers, between Speight’s Old Dark, released in 1991 and Speight’s Cider released in 2011 and consequently, label design personalities differed significantly. Dow’s senior creative team was invited to work with Lion on the project and the results will begin appearing in beer fridges around the country this month. Lion and Dow Design knew from consultation with consumers that any change in the Gold Medal Ale design would receive close scrutiny from Speight’s hard core fan base. “From its roots in the South, the Gold Medal Ale has earned a fiercely passionate following across the country, which we take very seriously,” explains Speight’s marketing manager, Jonte Goldwater. “Leading beer sales across New Zealand, Speight’s Gold Medal Ale is as popular as ever and we want to ensure it stays that way.” Refining the Gold Medal Ale labelling with subtle adjustments, the visual focus is now firmly on the leading elements; the arched logo across the top of the roundel, the triple stars, the signature of founder James Speight, and the statement ‘Master Brewers since 1878’ referring to
the brand’s enduring history. A keen eye might also pick up an evolution in logo type. Speight’s Summit Lager has also been brought into line in design terms. Summit now sports a traditional roundel and beer cues while remaining fresh and contemporary. Speight’s Cider made a significant impact on the cider market when introduced last summer. Design-wise it hadn’t strayed so far from the family line and with minor tweaks both brands will now be instantly recognisable as part of the collection. The recently released Golden Pale Ale and Triple Hop Pilsner join the existing 5 Malt Old Dark and Distinction Ale to create a more comprehensive range of ‘craft beers for the mainstream market’. All share the quintessential roundel and gold foil elements on their clear selfadhesive labels, combined with bottle neck labels adding sophistication in strong, rich metallic colours. Outer packaging has also received significant attention from Dow Design. New carton graphics give the range a stronger and more cohesive presence on the shelf, while expressing the true nature of each family member. l
New Czech kid in town The Czechs are world famous for their beer, and Kiwis will be pleased to know that the national treasure of the Czech Republic is now more widely available in New Zealand. Boundary Road Brewery is proud to welcome Budêjovickÿ Budvar to its premium beer portfolio and the new kid in town comes with an impressive history – the original Czech was lager founded in 1895. Budêjovickÿ Budvar is brewed in the Czech Republic following a 700-year-old brewing tradition. With its unique 90-day period of maturity, this ensures a truly unique and super premium beer. “Budêjovickÿ Budvar is popular among beer
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consumers all over the world, which is hardly surprising considering its hometown of Budweis has had over 700 years of brewing experience,” says Taylor Green, Budêjovickÿ Budvar brand manager. “It’s very exciting that one of the world’s best beers is now part of Boundary Road’s premium portfolio, meaning it will be widely distributed around the country – we’re sure discerning Kiwi beer drinkers will welcome Budêjovickÿ Budvar to the shelves,” says Green. Budêjovickÿ Budvar can now be found at all leading supermarkets and liquor retail outlets nationwide (RRP $27.99 for a 12 x 330ml pack). l
Farewell to the flying cork Flat, lifeless bubbles can take the fun out of any festive occasion. But now there’s a safer and faster way to open sparkling wine – and ensure the bubbles last longer. Kim Crawford wines has launched a new screw-cap closure on its First Pick Sparkling Sauvignon Blanc – same wine, just more convenient and longer lasting. The new Viiv screw-cap technology developed in Australia by Guala Closures and OI Glass is great news for both consumers and the trade. “Consumers love it – this has been the case in Australia – because now they don’t have to finish the bottle on one occasion,” says Andrew Twiname from Guala Closures. “The bottle is easily resealable and the wine stays fresh and bubbly for days.” Kim Crawford sales and marketing manager Rob Sinclair says the hospitality industry loves the screw cap because speed of service is always important in pubs and clubs and at events. “And they also like the fact it can be resealed to retain the bubbles for the next customer. Plus it minimises waste.” Sinclair also says ease of opening and the safety factor are compelling benefits. “Research tells us some people have difficulty extracting corks from sparkling wine bottles – and it can be a startling experience
if it goes wrong,” he says. “Plus, the screw cap encourages moderation – if you know the wine will retain its bubbles, you’re probably more motivated to save some for later.” Sinclair says bottles can be more easily stored in the fridge because they can be laid down and are more portable because they won’t spoil in the chilly bin, for instance. The unique closure system took five years to develop and significant investment in research and development to ensure it was suited to traditional (5-gas-volume) or high pressure sparkling wines. The Kim Crawford First Pick Sparkling Sauvignon Blanc is the first high pressure volume wine in New Zealand to use screw-cap technology. Kim Crawford says the wine should retain its vibrant, fresh fruit flavours and its bubbles for days after opening. Kim Crawford First Pick Sparkling Sauvignon Blanc with screw caps (RRP $17.99) can be found at good supermarkets and wine retailers nationwide. l
BIG BIZ IN FIZZ BWS takes a close look at sparkling wine and champagne trends. There is a rising consumer demand for quality sparkling wines and globally the category’s forecast shows very good growth prospects. Sparkling wine producers should be pleased. The increased willingness to splurge on a good bottle of bubbles, especially with Christmas and New Year festivities approaching, combines with the development of new markets to increase future sales’ opportunities. These are the findings of a worldwide survey on the sparkling wine sector, which encompassed 17 markets and was published by the London market research institute TNS in August 2012. The survey revealed that, if demand from all champagne and sparkling wine fans was fully met, the proportion of sparkling wine on the alcohol market would rise from 5.1% to 7.8%. The most significant growth – a quadrupling of market share for sparkling wine – could be seen in India and China. However, more mature markets like the USA and UK could also double their market share. Jan Hofmeyr, chief researcher in behaviour change at TNS, said: “Globally there is an increasing wish to enjoy sparkling wine and champagne, although many people are still put off by the prices. The drink is also seen as a luxury for special occasions. The good news for sparkling wine producers is that consumers feel that sparkling wine tastes better and is more enjoyable than other alcoholic drinks. Thus, the study does not reveal that consumers will increase their alcohol consumption overall but that they wish to drink sparkling wine more often.” Comprehensive impressions of the international sparkling wine market will also be available at ProWein 2013, held in March in Germany. Showcasing at ProWein in the sparkling wine segment
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FMCG novemBER OCTOber 2012 2012
will be a total of 330 exhibitors from 26 countries, including New Zealand. New target groups An emerging global trend in sparkling wines is a focus on milder, medium-dry flavours and growing interest in rosé sparkling wines. Furthermore, some producers have started successfully tapping into new target groups with flavoured sparkling wines or ready-todrink variations of mixed drinks containing sparkling wine, or by advertising with new serving methods for their products. There is also an international trend for 0.2L miniature bottles. Even if the market share of alcohol-free sparkling wine is still relatively small, as suppliers insist, major European producers are virtually unanimous about the growth prospects of this market. The reasons for this lie both in the duty on alcohol in individual countries and in the trend towards a healthier lifestyle. So far this year Henkell has posted two-digit sales growth for alcohol-free sparkling wine. Despite encouraging sales opportunities, sparkling wine producers cannot look to the future entirely without concern, with rising raw material prices on the one hand and increasing competition on the other. However, branded sparkling wine producers like Henkell & Co see excellent quality, design, brand communication and innovative offers as a way out of these downward-spiralling prices. Grandin Another trend emerging on the sparkling wine market is the increased focus on origin of the wines. In France in 1886, Henri Grandin, a notary and wine lover, married Mademoiselle Pouillet de Limesle, whose family owned the cellars of ‘la Bouvraie’ in the old royal glassworks of Louis
XIV, below a splendid château at Ingrandessur-Loire. This region is known as “le Jardin de la France”, named as a tribute to a gentle and peaceful area that the Kings of France had made their summer playground for centuries. That same year, Henri Grandin launched the “méthode champenoise”, which still bears his name. The Grandin property today still consists of this stunningly picturesque Château and its cellars, producing an excellent quality in the purest tradition of the méthode traditionelle. Grandin Rosé is an elegant blend of Pineau Aunis, Grolot and Cabernet grapes and is matured for 12 months. It has a light blush colour, a fruity bouquet, crisp, delicate style and dry finish; typical of French styles. Grandin Brut is an elegant blend of predominantly chardonnay, chenin and colombard grapes and is matured for 12 months (the same as many champagnes). Grandin Brut is a brilliant straw yellow with gold reflection colour and has a crisp finish, fruity bouquet that is very well balanced. Grandin is distributed in New Zealand by Federal GEO. Pol Roger Pol Roger is one of the few remaining great family-owned champagne houses and a personal favourite of Sir Winston Churchill. Epernay is the heart of Champagne and at the heart of Epernay is Pol Roger, with its cellars running under the Avenue de Champagne, where the exquisite and characterful wines are created. Pol Roger Champagne has a soul, created by the union of a family’s spirit and the character of a vineyard. The purity and nobility of Pol Roger Champagne reflects the know-how, passed down from generation to generation. From the harvest
spar kli ng wi n es in the region’s best vineyards to the painstaking work in the cellar, each gesture has its importance. The company has an unwavering dedication to two essential values: excellence and independence. Excellence means the rigorous selection of vine growers and the strict selection of the grapes. It also means that the family in complete independence chooses the blends which produce the wines. All of this is revealed in the ability to reproduce each year a blend which is consistent in style and in quality with that subtle bouquet of aromas, that unique mix of complexity and balance, of freshness and distinction, which is at the origin of Pol Roger. Piper Heidsieck The Piper Heidsieck brand is internationally renowned and awarded with countless medals. With a long history and a touch of glamour and elegance, the creativity of this brand has gone
from strength to strength since 1785. The winemakers and their team have received the coveted “Winemaker of the Year” award from the International Wine Challenge on 13 occasions (including 2007, 2008, 2009, 2010, 2011 and again this year!). Piper Heidsieck wines are radiant and crisp. Regis Camus, Piper Heidsieck’s winemaker, has raised the wines of Piper-Heidsieck to a new level of excellence, led by a strong belief in the necessity to ensure consistency of quality. Regis has chosen to use a majority of carefully selected pinot noir grapes, to bring crispness and radiance to the range of award-winning wines. The Piper style displays freshness, vivacity and plenty of fruit. Piper Heidsieck wines have charm and drive but also structure and precision. Over the last 220 years the Piper Heidsieck house has evolved, without really changing the wines’ easy approach and their sophisticated simplicity. l
Cuvée No 1 100% chardonnay (blanc de blancs). A perfect balance between fruit and yeast, the wine was held on lees for two years allowing full autolysis displaying a tiny consistent bead, and firm mousse resulting in a typical, complex, champagne-like character. The palate is intensely flavoured and focused with the good fruit-yeast balance providing elegance and style. RRP $35.00 No 1 Family Estate Phone: 03 572 9876 marketing@no1wine.co.nz www.no1familyestate.co.nz
Cuvée Number 8 An easy-drinking aperitif style, this wine was blended from Pinot Noir and Chardonnay. It is fresh and inviting with sophisticated champagne-like characters, lifted biscuity yeast autolysis flavours, citrus and floral characteristics and a long finish. RRP $30.00 No 1 Family Estate Phone: 03 572 9876 marketing@no1wine.co.nz www.no1familyestate.co.nz
No 1 Rosé This exceptional rosé is made from 100% Pinot Noir. Beautiful soft rosé pink in colour with a mass of tiny bubbles, the wine offers a seamless balance with a hint of strawberry and champagne like autolysis on the palate. Fresh and elegant, this wine leaves a lasting impression of opulence and splendor. RRP $44.00 No 1 Family Estate Phone: 03 572 9876 marketing@no1wine.co.nz www.no1familyestate.co.nz
Cuvée Adele 2009 Cuvée Adele is blended from handpicked grapes which are whole bunch pressed, blended from 80% Chardonnay and 20% Pinot Noir, and crafted especially by Daniel as a proud tribute to his wife Adele. Thirty months ageing on yeast lees has produced a methode traditionelle that has a tightly focused bouquet showing light biscuity notes, toasted nuts and a firm mousse – this wine has a complex palate, revealing great length, finishing with rich and dry notes. RRP $125 No 1 Family Estate Phone: 03 572 9876 marketing@no1wine.co.nz www.no1familyestate.co.nz NOVEMber 2012 FMCG
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s p a r k l i n g w ine s Grandin Rosé Grandin Rosé is an elegant blend of Pineau Aunis, Grolot and Cabernet grapes, matured for 12 months. A light blush colour, with a fruity bouquet, crisp, delicate in style and dry finish; typical of French styles. RRP $16.99 Federal Geo Ltd Phone: 0800 846 824 federalgeo@xtra.co.nz www.federalgeo.co.nz
Grandin Brut An elegant blend of predominantly Chardonnay, Chenin and Colombard grapes, Grandin Brut is matured for 12 months (the same as many Champagnes). With a brilliant straw, yellow with gold reflection colour, Grandin Brut has a crisp finish and fruity bouquet that is very well balanced. RRP $16.99 Federal Geo Ltd Phone: 0800 846 824 federalgeo@xtra.co.nz www.federalgeo.co.nz
Sparkling Moscato This is the first release of Sparkling Moscato, which follows the success of Moscato. The wine has a bright vibrant colour with a youthful green hue and a lifted citrus aroma along with freshly crushed grapes and a sherbet perfume. The palate also shows these characters along with a fruitiness that is balanced by acidity and a full sparkling sensation. RRP $17.99 Mini four bottle fridge pack RRP $19.99, single Mini bottle $5.99 Dean McHenry Phone: 021 994 009
Pol Roger Brut Reserve NV The blending of their most popular cuvée is a source of particular pride. This elegant Champagne from Epernay has a lovely floral bouquet, refreshing fruit flavours and an exquisite mousse of tiny bubbles. The refined body is light with good backbone. A popular, versatile style of Champagne for all occasions. RRP $89.00 Hancocks Wine, Spirit & Beer Merchants Phone: 0800 699 463 sales@hancocks.co.nz www.hancocks.co.nz
Piper Heidsieck Cuvée Brut The nose is reminiscent of a bright, fresh morning during early spring. Notes of citrus fruits, Granny Smith apple and subtle hints of warm toastiness follow spring blossoms such as hawthorn. The palate is fresh and lively, with more mature notes of pineapple, nutmeg, white pepper and oriental zest. RRP $74.90 Hancocks Wine, Spirit & Beer Merchants Phone: 0800 699 463 sales@hancocks.co.nz www.hancocks.co.nz
Henkell Trocken Dry Sec Henkell Trocken combines sparkling wine expertise with elegance and vigour, making it the ideal sparkling wine for all occasions. A fine bouquet of fruity notes and citrus characters make Henkell Trocken invitingly light. The palate is fresh and lively, with subtly tropical fruit nuances, and a lingering finish. RRP $17.99 Hancocks Wine, Spirit & Beer Merchants Phone: 0800 699 463 sales@hancocks.co.nz www.hancocks.co.nz
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FMCG novemBER OCTOber 2012 2012
DIARY
2012
2013
NOVEMBER
JANUARY
2-4
THE HEALTHY LIVING SHOW
18-27
INTERNATIONAL GREEN WEEK BERLIN
Auckland, NZ
The world’s biggest fair for food, agriculture and horticulture Berlin, Germany
www.healthylivingshow.co.nz
4-6
C-SHOP COLOGNE
The European Convenience Show Cologne, Germany 6-8
www.greenweek.de
27-30
ISM 2013/PROSWEETS COLOGNE
www.cshopcologne.com
DRINK TECHNOLOGY INDIA
www.ism-cologne.com www.prosweets-cologne.com PINOT NOIR NZ
Mumbai, India
www.drinktechnology-india.com
28-31
6-8
INTERNATIONAL PACKTECH INDIA
www.packtech-india.com
29
DELOITTE/MANAGEMENT MAGAZINE TOP 200 AWARDS
Wellington, NZ www.pinotnz.co.nz
Mumbai, India
Cologne, Germany
SkyCity Convention Centre, Auckland, NZ www.management.co.nz/top200
FEBRUARY 6-8
www.fruitlogistica.com
13-16
BIOFACH
Nuremberg, Germany www.biofach.com
MARCH 24-26
Order your Christmas lines now from James Crisp
Berlin, Germany
Is your event or trade fair featured here? If you’d like to be included please email: editor@fmcg.co.nz
FRUIT LOGISTICA
PROWEIN
Düsseldorf, Germany www.prowein.de