incorporating
9 421902 251016
February 2013 Volume 19 No 1 $9.15
THE BUSINESS OF MANUFACTURING • LOGISTICS • SUPERMARKETING
fmcg . co . n z
•
foo d ne w s . co . n z
A kiwi favourite .. .
Butterfly Chicken
on-promo for summer
Lime & Chilli
Tandoori Herb & Garlic
TURNING SHOPPERS INTO BUYERS John Buchanan Sales Manager 021 302 784
IT DOESN’T HAVE TO BE THIS WAY If you are an advertising agency with FMCG clients, you might be interested to learn that Hypermedia can make sure your brand building, above the line campaigns convert to actual product sales at store level. Our in-store advertising reminds shoppers of key brand messages right at the shelf. Its the biggest opportunity you may be missing to drive them to buy! Don’t let 2.5 million Countdown shoppers a week simply walk by your clients brands in-store. Talk to Hypermedia about the sales conversion power of in-store advertising today.
Mark Hobday Sales Manager 021 302 716
www.hypermedia.co.nz
Reach consumers ZLWK DOO ÀYH senses Are consumers hooked after tasting your product? Is your product or service better understood with a face-to-face demonstration?
Engage directly with consumers in the following markets:
)RRG ZLQH DQG EHYHUDJHV RI YLVLWRUV HDUQ RYHU SD Earn $71,000pa +
RI YLVLWRUV SXUFKDVHG DW WKH VKRZ
56% 81%
Aged 25-60 3-6 hrs visiting
97%
Purchased products at the show Brand awareness influenced
52%
62,899 Visitors nationwide
Exhibitors met sales target
85% 78%
DYHUDJH VSHQG SHU YLVLWRU $203
AKL Av spend CHC Av spend WGL Av spend
$118 $115
Download the full 2012 post-show report: www.foodshow.co.nz/home/exhibit/stats-reports.aspx
“We always see an influx of customers in store after the show and this year is no exception.� – Mercato
“We increase our sales during the show year after year; most importantly, we have new distributors interested in our products too.� – Villa Italia
2013 shows now selling - call for a no-obligation chat: Kylie Stevens 0800 727 469 | +64 9 555 1143 | kylie@foodshow.co.nz
WGL: 24 - 26 May 2013 AKL: 1 - 4 August 2013 CHC: 13 - 15 Sept 2013
Winner Best Consumer Show Under 10,000m2
Winner Best New Zealand Show
EXHIBITION & EVENT ASSOCIATION OF AUSTRALASIA
EXHIBITION & EVENT ASSOCIATION OF AUSTRALASIA
Pregnancy, baby and toddlers RI YLVLWRUV HDUQ RYHU SD 25% 29%
Earn $100,000pa +
Purchased products at the show
Expectant parents
58%
RI YLVLWRUV SXUFKDVHG DW WKH VKRZ 86% 88%
Brand awareness influenced
Parents 0-2yrs
12,982 Visitors - AKL
Exhibitors met sales target
DYHUDJH VSHQG SHU YLVLWRU RQ 75% 28% 21%
76%
Baby Pre-school Pregnancy
Download the full 2012 post-show report: www.babyshow.co.nz/home/exhibit/stats-reports.aspx
“The engagement you get face-toface with consumers at this show is not like any other type of sampling we can do for the brand.� – Huggies
“We get new parents who don’t know about the brand, they’ll come and they’ll purchase something and then we get them back.� – Dimples
2013 show now selling - call for a no-obligation chat: Terri Pattison 0800 727 469 | +64 9 376 5841 | terri@babyshow.co.nz
23 - 25 August 2013 | Auckland
+HDOWK YLWDOLW\ DQG QDWXUDO EHDXW\ RI YLVLWRUV HDUQ RYHU SD Earn $70,000pa +
44%
Aged 45-54
Purchased products at the show 85%
84%
Aged 25-60
33%
4,544 Visitors - AKL
RI YLVLWRUV SXUFKDVHG DW WKH VKRZ
Brand awareness influenced
91%
Exhibitors met sales target 63%
DYHUDJH VSHQG SHU YLVLWRU RQ Nutrition & diet
61% 46% 18%
Natural beauty Balance & relaxation
Download the full 2012 post-show report: www.healthylivingshow.co.nz/home/exhibit/stats-reports.aspx
“Visitors were generally willing to spend on products of a high quality... and many visitors found the information from talking to us one-on-one invaluable.� – Osmosis Skincare NZ
“We were able to have some great conversations, highlighting our position as a trusted advisor for health conscious consumers.� – Ecostore
2013 show now selling - call for a no-obligation chat: Dona White 0800 727 469 | +64 9 376 4603 | dona@nthport.co.nz
1 - 3 November 2013 | Auckland
ZZZ QRUWKSRUWHYHQWV FR Q] _ Statistics: 2012 post show reports conducted by leading statistics and research company Covec, for The Food Show, Baby Show and Healthy Living Show.
Bumtteresarleflsy sum
Drive fresh category sales this summer with Ingham Butterfly Chicken consumer WIN promotion commencing 27th January and ending 23rd March 2013. The 2012 Ingham Butterfly Chicken promotion delivered exceptional sales growth. Building on last year, 2013, will see the return of this popular summer promotion. Fronted by former Silver Ferns captain and legendary Kiwi, Bernice Mene, this instore WIN a Butterfly Bay Escape promotion provides the optimal seasonal consumer appeal. Supported over the eight weeks with dedicated T.V, Radio, PR and Online advertising along with instore support, summer sales just got brighter.
8w
consuemek er
W I prom N
otion
Lime & Chilli
Tandoori
ACU_ING_11270
Herb & Garlic
range‘em... your customers will Love‘em. For more information call Ingham’s sales department on 0508 800 785.
14
Editor’s note FMCG Online Industry news
Category checks 24 26 30 34
contents
8 9 10
F E B R U A RY 2 0 1 3
Up Front
Salads & Dressings Bread Hand, Foot, Bodycare Babycare
Regulars 14 Feature
Global consumer trends
15 Subscription form 16 FGC
49
Katherine Rich considers misinformation about food additives
18 Nargon
Trina Snow reflects on 2012 and the tobacco display ban
19 Beef + Lamb NZ
Rod Slater explains their new marketing strategies
20 Fresh and local In season
22 Fish of the month
All about greenshell mussels
23 Profile
Ikana - culinary treasures from NZ sea gardens
30 Health & Beauty Aisle Hand, Foot, Bodycare
50
OUR COVER Ingham’s seasonal promotion will drive fresh category sales this summer.
contents
40 Shopability
Easter opportunities
41 What’s Hot for Easter 64 Snap Spotted out and about
F E B R U A RY 2 0 1 3
65
Diary Your guide to upcoming industry events
Grocery business Keeping you up to date with packaging, IT, supply chain and logistics
42 Grocery business news 45 Exhibitions
Dona White explains why exhibitions make dollars and sense
47 Recruitment
Hamish Marr on building relationships
48 Feature
Made in NZ
52 Legal
New era for health claims
Convenience store and oil channel updates
48
54 C-store news 55 Resource directory 56 Nargon
Poor service costs money, says Trina Snow
60
59 BWS industry news 62 Feature Best of Ireland
62
e ditor ’s note Vol 19
No 1
FEBRUARY 2013
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
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Mediaweb Limited PO Box 5544 Wellesley Street, Auckland 1141 115 Newton Road, Eden Terrace, Used1010 on a black background Auckland Phone 09-529 3000, Fax 09-529 3001 www.mediaweb.co.nz The opinions and material published in FMCG are not necessarily those of the publisher except where specifically stated.
Back to basics Unpredictable weather patterns and a fragile global economy have tested the patience of growers, manufacturers and retailers trying to plan for the long term. But a new year brings fresh hope, a chance to take stock and learn from the past as we set out for the future. Will we find a sustainable path to prosperity without risking our environment? Is your team ready to tackle new challenges with confidence and to implement sound strategies for growth in 2013? Keeping an eye on the latest industry news, untapped market segments and FMCG developments in other countries will be vital. Turn to pg 14-15 for a summary of key consumer trends, with new research findings from Euromonitor and Nielsen. ‘Global Kiwi Baker’ Dean Brettschneider, who is filming a new TV series in France, says that éclairs are ‘it’ in Europe this year. Meanwhile in the US, new cherry flavoured marshmallows dipped and drizzled in chocolate have appeared just in time for Valentine’s Day. Omnivorous menus have started emerging in restaurants all over the world, from crispy pig ears to sea buckthorn berries. Foodies in the US are embracing new interpretations of paddock-to-plate stories with grilled pig’s tail at the Spice Table in Los Angeles and the humble pork crackling reinvented as a snack in many swanky bars. Glamming up simple, cheaper cuts of meat helps to minimise food waste and has merit against the background of a challenging economic climate and dwindling resources. It’s all about going back to basics. Absolut Vodka’s flavour portfolio comes into full bloom with the introduction of a new Hibiskus flavour, while in the global non-alcoholic drinks industry coconut
water is believed to be the next big thing. What started as a seemingly fleeting fad in the US in 2005 saw sales exploding to US$350 million within just three years. In Europe,sales of coconut water doubled in 2011 alone. Some predictions see the value of the coconut water industry rapidly reaching US$1 billion worldwide. Coca-Cola and Pepsi have invested in coconut water companies, and around three in every ten beverages being released to the market now contain coconut water. Healthy, functional foods will become increasingly important for an affluent, greying baby boomer generation – a target market with enormous potential that has been largely overlooked. I dare say catering for the lifestyle and requirements of older consumers will become one of the most important trends in the FMCG industry, but understanding the needs of this generation seems a steep learning curve for some. Catering for shoppers’ preferences can be as easy as learning from empty supermarket shelves. When sandwich-sliced bread sells out well before the thicker toast variants and there are no mince & cheese pies left in the freezer then it may be time to review the old ordering patterns. We hope you enjoy our new ‘Fish of the month’ editorial column and also the expert advice on trade shows, penned by Dona White, CEO of Northport Events. We continue our ‘Made in NZ’ series as we celebrate 25 years of Buy New Zealand Made, and share valuable insights from the chief executives at GS1, Nargon, the FGC and Beef + Lamb NZ. Please remember to send us your news, events and industry snaps – our team loves hearing from you!
© 2013 Mediaweb Limited. ISSN: 1175-8279 (Print), 1179-8718 (Online).
Tamara Rubanowski editor@fmcg.co.nz
Official b2b magazine for the Gluten Free Food & Allergy Shows. Media partner Nargon Supplier Awards. Media partner Fine Food NZ 2012.
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fmcg.co.nz FMCG has a few web exclusive features to get you clicking.
Online shopping developments Ever worn underpants on the outside of your clothes? Dr Peter Stevens explains on fmcg.co.nz.
Blueberries could minimise heart attack risk
US and China key to NZ’s organic export growth
A new international study suggests that eating blueberries and strawberries can cut the risk of heart attacks in women by a third. See the full report on fmcg.co.nz.
One of New Zealand’s most respected organic egg pioneers explains online why the future of local industry growth lies in expanding the lucrative US and Chinese markets.
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An extensive archive of previous issues of FMCG you may have missed as well as news, category reports and more.
news New Chairman for FGC Pierre van Heerden, GM of Sanitarium Health & Wellbeing, is the new Chairman of the NZ Food & Grocery Council. He replaces George Adams, CEO of Coca-Cola Amatil (NZ) Ltd, who is stepping down after six years on the board and a four-year term as chairman. Van Heerden has been co-vice-chair of FGC since 2010 after joining the board in 2009. He has been general manager of Sanitarium in New Zealand since 2007. Van Heerden says FGC has made great strides under the chairmanship of George Adams and pays tribute to the work he has done to transform the organisation. “George has done a fantastic job as chair and I speak for the Board in voicing my appreciation. It’s an honour to follow his term, which has seen the transformation of our industry advocacy body.” Katherine Rich, FGC’s chief executive, also praised the contribution of George Adams. “The food and grocery industry has benefited greatly from the vision George Adams has brought to the chair and his focus on the challenges faced by the grocery sector, which is such a significant contributor to New Zealand’s continued prosperity. “FGC is extremely fortunate that George has passed the baton to someone of the calibre of Pierre, and I look forward to continuing to work closely with him. “As one of our two vice-chairs (with Scott MacKay of Design Print Partners), Pierre has worked alongside George in the thick of issues concerning the industry, and will continue the important work FGC does on behalf of our member companies in the food and grocery industry.”
FGC also paid tribute to the major contribution of Peter McClure of Fonterra Brands who steps down from the Board after 14 years of dedicated service. Van Heerden has 30 years’ experience in the food, FMCG, and manufacturing industries. He joined Sanitarium in Australia in 1996 and has held a diverse range of management positions. Over FGC’s new chairman, Pierre van Heerden. the past 20 years he has also served on numerous company and charitable boards. He was awarded the New Zealand Institute of Food Science and Technology (NZIFST) 2012 Food Industry Award “Excellence in Leadership” for the outstanding, highly dedicated, and effective leadership he demonstrated in dealing with the many issues that confronted his company, the wider food industry, and the local community after the Christchurch earthquakes. l
Van Heerden has been co-vice-chair of FGC since 2010 after joining the board in 2009. He has been general manager of Sanitarium in New Zealand since 2007.
CCA NZ appoints new MD After nine years as managing director of CCA, New Zealand and Fiji, George Adams has decided for personal reasons to repatriate back to Europe in order to pursue opportunities within the Coca-Cola system. Following a planned transition process with his successor, he will leave CCA NZ after April and plans to relocate mid-year. During his tenure, Adams has overseen more than $300 million dollars worth of capital investment into the New Zealand business, while instilling strong disciplines and a customer centric culture. He also achieved his aim of CCA NZ being ranked as the most profitable food and beverage company in the Deloitte 200 for the last four years running, achieving the top spot six times in the past decade. Adams was also chair of the New Zealand Food and
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Grocery Council for six years and a member of the Zero Harm Business Leaders Forum. CCA NZ has announced the appointment of Barry O’Connell as managing director for CCA New Zealand and Fiji, commencing early April. O’Connell is from the Republic of Ireland and has a proven track record of success. He joins CCA after 20 years with Coca-Cola Hellenic (CCHBC); his current role is general manager for Austria & Slovenia. Under his leadership, the Austrian business has been one of the best performing markets in CCHBC, delivering double digit EBIT growth and significant market share gains over the last three years. O’Connell will relocate to Auckland in April and will be joined by his wife Mary and his children. l
n ews Nestlé site marks a big milestone The Nestlé brand first arrived in New Zealand more than 130 years ago, when products were brought here in the luggage of European immigrants. Since then it has cemented itself and its products as staples in our pantries and as an important manufacturer, employer and contributor to the New Zealand economy and community. Many New Zealanders have fond memories of Nestlé Scorched Almonds, sneaking spoonsful of Highlander Condensed Milk from the fridge, a shared moment over a cup of Nescafé, or a hot Milo around the camp fire. At the heart of these memories is Nestlé’s main production site in Wiri, Auckland, which recently celebrated 50 years of operations. First opened in May 1962, Nestlé’s Cambria Park factory inherited its name from the US Military’s Army base, which occupied the site during World War II. At the opening address, Prime Minister Holyoake spoke of the importance of increasing New Zealand’s export earnings, and broadening our economic base and Nestlé’s Cambria Park factory rose to the occasion. Today the operation employs 320 people, produces 220 products from its manufacturing lines, and exports around $60 million of goods each year. Initially the factory was established to produce Nescafé coffee for a nation of tea drinkers. Coffee’s popularity and production volumes have since increased and Nescafé is now the country’s leading coffee brand. Over the past 50 years, Cambria Park production has extended beyond the New Zealand market with recent years seeing specialised culinary and confectionery lines extend to offshore markets. Today the site supplies markets such as Australia, Japan and Pacific Islands with Maggi products, and also produces confectionary such as Nestlé Scorched Almonds, Wonka twists,
The Nestle site in Wiri, circa 1962.
Oddfellows mints and Mackintosh toffees for the local market and Australia. Maurice Gunnell, Head of Corporate Services at Nestlé says the factory has grown significantly from humble beginnings with only 50 staff. “We’re delighted to celebrate half a century of producing some of New Zealand’s most loved products. I’ve personally been involved with the site over the past 30 years, and have watched it develop to the factory it is today. We are proud of the high quality products produced at Cambria Park and of the contribution it has made to the New Zealand economy through employment, export earnings and to the community through our Creating Shared Value programmes which have supported the local community over the years”. The Nestlé Community Environment Programme (NCEP) at Cambria Park has been running for the past nine years. The programme has invested over $200,000 and contributed to the planting of 15,000 trees along the Puhinui Stream, the installation of water tanks, compost and gardening systems in Weymouth Intermediate and Papatoetoe High School, and the development of the Tangaroa College school garden. l
february 2013 FMCG
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Photo: thinkstockphotos.com
news
Drink product launched for early Alzheimer’s disease Souvenaid, a unique 125ml once-a-day drink, is now available in England, Wales and Scotland for people living with early Alzheimer’s disease. This over-the-counter innovative product is the result of over 10 years of research into the nutritional needs of people living with the early stages of the disease. Alzheimer’s disease is a growing health problem in an aging population, with loss of connections in the brain (synapses) as one of the key features of early Alzheimer’s disease. A combination of nutrients is required in the process of making new connections, and people living with Alzheimer’s disease have been shown to have relatively low levels of these nutrients in their bodies, despite eating a normal diet. This adds to a growing body of evidence that highlights how nutrition can help manage the disease in the early stages. Dr David Wilkinson, consultant in Old Age Psychiatry, commented: “Alzheimer’s disease is not part and parcel of aging but a serious and progressive disease of the brain which prevents us from being able to retain new memories. As we age, our bodies become less efficient at processing essential nutrients, meaning that we need to increase our intake of food to absorb the same amount of nutrients in order to maintain a healthy body. In the same way, we need the right nutrients for our brains to keep them healthy.
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FMCG february 2013
“Alzheimer’s disease sufferers often find it very difficult to get everything they need through diet alone and the nutritional intervention by the use of Souvenaid is a new area of research offering promising results for the management of early Alzheimer’s disease.” The current healthcare provision for people with early Alzheimer’s disease fails to reflect the important role that nutrition can play in managing the disease. A recent survey of specialists, involved in the diagnosis of Alzheimer’s disease, showed that only a third (33%) regularly assess patients’ nutritional status during the diagnostic process. Two-thirds of specialists do not even have access to a dietitian for these. Nutricia’s Souvenaid contains a unique combination of nutrients that are naturally present in food, at levels difficult to achieve from diet alone. It contains: omega-3 polyunsaturated fatty acids (docosahexaenoic acid [DHA], eicosapentaenoic acid [EPA]), uridine (as uridine monophosphate [UMP]) and choline, together with phospholipids and B vitamins. Souvenaid comes in two flavours (vanilla and strawberry). Nutricia, a leading medical nutrition company in Europe, is part of Danone, one of the fastest-growing food and nutrition companies in the world. l
n ews Fonterra pledges milk for all primary schools About 350,000 primary school children throughout New Zealand will be offered a free serving of milk every school day this year, as part of the nationwide Fonterra Milk for Schools programme, the dairy co-operative announced recently. Fonterra chief executive Theo Spierings said that after trialling the school milk programme in Northland, Fonterra had decided to roll out the programme to all 2000 primary schools throughout the country. “We are totally committed to Fonterra Milk for Schools because we believe it will make a lasting difference to the health of New Zealand’s children. We want Kiwis to grow up drinking milk because it’s good for them and we are proud that this programme will give every primary school kid the chance to enjoy this nutritious product,” he said. “New Zealand is the largest exporter of dairy products in the world, but at home, we’re not drinking as much milk as we used to. We want to be the dairy nutrition capital of the world and this starts with our kids.” Research conducted by the University of Auckland has shown that children’s milk consumption in the Northland community, both at school and at home, has significantly
increased since the pilot began. “We know that getting Kiwis drinking more milk is not an overnight job but we are committed to helping to improve the health of our kids,” said Spierings. The Co-operative made the announcement at an event co-hosted by its farmer shareholders and Hillpark Primary School in Manurewa. Spierings said: “The Northland pilot allowed us to test our systems. We learnt some valuable lessons and got great feedback from schools in the area. We can now move forward with the confidence that the programme is a winner. “That said, this is a huge undertaking and we’ll be rolling out town by town. We will continue with Northland, and launch in Southland in the first term, moving through the country during the year. We expect to have all schools who wish to take part on board by Term 1 2014.” Fonterra ambassador Richie McCaw said: “Over this past year I have been blown away by the passion of Fonterra’s people and the importance of the Co-operative’s farmer roots in everything it does. As a country, we should be extremely proud of this long-term commitment our New Zealand dairy farmers are making.” l
Shaved Leg Ham Available in 200g prepack or shaved fresh from the Delicatessen serve over.
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123 Tennants Road, Bulls, New Zealand.
0800 806 328
www.farmlandfoods.co.nz
february 2013 FMCG
13
Global consumer trends New research findings from Euromonitor and Nielsen reveal key market drivers.
Photo: thinkstockphotos.com
T
oday’s consumers are value-conscious, interactive, multicultural, healthdriven, socially responsible and always connected, says Gina Westbrook, editorial director at Euromonitor International. In developed markets, conspicuous consumption is out, with personal appearance and wellbeing taking priority over the accumulation of material possessions. Euromonitor International identified the following ten trends as key drivers of global consumer markets in the next five years. 1.The search for value: One of the key outcomes of the recession was that consumers reigned in spending and became much more cautious about how, when and where they shopped. This thrifty mindset looks set to continue over the next five years. 2. A more cautious approach to credit: Since the start of the recession, con14
FMCG february 2013
sumers in developed markets have prioritised the need to live within their means and have tended to acquire new credit only for larger, specific purchases. 3. People power: In a new age of cautiousness and considered purchasing, consumers no longer take marketing at face value. Individuals are taking it upon themselves to carry out their own research, make their opinions known and take a more active role in product development and promotion. 4. Multicultural consumerism: Societies are becoming more multicultural as developed markets see an influx of migrant workers and foreign students, while existing ethnic populations expand. 5. The fight against obesity: Despite the growing trend towards health and wellness, obesity rates have reached record levels and continue to grow, albeit more slowly than before. According to the World Health Organization (WHO), obesity rates have doubled since 1980. 6. New attitudes toward growing old: As populations have aged and society has become more liberal, attitudes toward youth, middle- and old-age have changed markedly, blurring the traditionally-perceived boundaries of age-appropriate fashion and lifestyles. 7. Experience-based consumption: Since the start of the recession, consumers in developed markets have focused less on conspicuous consumption and the gain of material possessions, and more on seeking out mood-boosting or even life-changing experiences.
8. The rise in social responsibility: Despite consumers having become more value-conscious since the start of the recession, there are also signs that many have become more compassionate and socially responsible. 9. The chemical backlash: As consumers worry increasingly about their health and wellness and the effects of potentially harmful chemicals found in everyday products, demand for natural ingredients in everything from packaged food to toiletries continues to grow. 10. Mobile cocooning: Consumers worldwide are becoming addicted to smart devices such as mobile phones and tablet computers as they are able to fulfil an ever growing multitude of tasks anywhere and at any time, from shopping, entertaining and networking to banking, education and GPS.
Shoppers in Asia-Pacific are brand loyal Consumers in Asia-Pacific are among the world’s most reluctant to switch to new brands, with only 44 percent willing to experiment with alternatives, according to Nielsen. The figure contrasts with 57 percent of consumers in North America, the Middle East and Pakistan who are willing to try out new brands, 56 percent in Europe and 47 percent in Latin America. In fact, 55 percent of online consumers in Asia-Pacific prefer to purchase new products from a familiar brand and 62 percent will even wait until a new product has proven itself, the Nielsen Global Survey of New
featu re Product Purchase Sentiment found. The study canvassed 29,000 online respondents in 58 countries. Online consumers in Thailand and Japan in particular are extremely reluctant to try a new product from an unfamiliar brand, with 77 percent of Japanese preferring not to and 70 percent in Thailand feeling likewise. “Innovating on established brands that are already trusted by consumers in Asia can be a powerful strategy for companies who are shifting their attention to consumers in this growth engine market,” confirmed Therese Glennon, managing director of innovation practice, Asia-Pacific, Middle East and Africa for Nielsen. Asia-Pacific respondents also place more faith in global brands versus local brands. Only 38 percent said they would prefer to purchase local brands compared with 40 percent globally and 47 percent in North America. “In Asia, the preference for global
Demand for natural ingredients in everything from packaged food to toiletries continues to grow. brands versus local brands is twofold,” said Glennon. “Although local brands are increasingly becoming premium, perception around quality remains an issue.” Asian consumers still attach a degree of prestige to global brands. “Over time, this is expected to change as local brands match global brands in premium positioning and high quality offerings,” said Glennon. So how can you get Asian consumers to try new products? Top of the list is word-of-mouth, which more than eight in 10 regard as the most persuasive source of new product information (compared to 77 percent globally).
However, 71 percent of online respondents in the region find internet search, ads on frequently visited websites (63 percent) and traditional TV advertising (60 percent) remain major components of the influencing mix. “There is no one-size-fits-all approach to successfully developing and marketing a compelling new product,” said Glennon, adding that Asia’s growth economy is no guarantee of success. “By focusing on unmet needs, creating a distinct solution, and developing a market-ready offer, marketers and manufacturers will create the best opportunity to succeed with consumers in Asia-Pacific,” she concluded.
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15
True colours Photo: thinkstockphotos.com
Katherine Rich considers misinformation about food additives.
I
n this age of instant social electronic media, many pitfalls abound for the unwary. A rushed, unconsidered response to something can result in a “tweet” or a Facebook post that can go viral within seconds, never to be pulled back. On the other hand, these tools can be invaluable in enabling a vital or promotional message to be read by millions of people within seconds, staying in touch with friends, finding a project how-to, or doing research for an article. The noun “Google” is now also an adjective that forms part of our everyday life. And what a great tool it is. Search for anything and it will yield millions of results in less than a second, often before you type the last letter of the word. But like many tools, it can produce wrong and misleading results if not used carefully. This was brought home to FGC recently during research around food colours. Within seconds, our search filled the screen with a myriad of 16
FMCG february 2013
websites containing all manner of information. Some of the sites were random food websites purporting to be some sort of authority on the subject. Other “hits” produced erroneous blogs posted by people who thought they could contribute to the food debate by adding their opinions. And there was Wikipedia. But we were shocked to find that most of the sites at the top of the list contained disturbingly false information. Some sites said many colours commonly used in foods produced in New Zealand caused anything from hives to kidney tumours, cancer and chromosomal damage. Some sites repeated false information that these colours were either banned in many countries or not approved in others because they were harmful. On the issue of safe use of food colours, the big problem online is that by far the vast majority of these unofficial sites contain information which is plain wrong. Here are several examples of what our initial search coughed up:
• Sunset Yellow is responsible for hives, allergies, hyperactivity, distaste for food, kidney tumours, nausea, and chromosomal damage, and is banned in several European countries. • Allura Red is linked to cancer in mice, and is banned in Denmark, Belgium, France and Switzerland. • Brilliant Blue FCF caused an allergic reaction in people with pre-existing moderate asthma, and is banned in many European countries. Scary stuff – if it were true! A more careful search of official sources and databases on some 31 government and regulatory body websites around the world revealed quite a different story.These official sources negate or clarify every allegation above, note no safety concerns, and confirm widespread international moderate and safe use. All enough for anyone interested in food facts to see red! And the story was the same for any colour we could think of: plenty of scary stories on dubious websites and ill-informed blogs, but always an array of scientific studies from reputable sources proving the opposite. Which goes to show why it’s so important to check official sources rather than believing the first thing you see, and to treat other sites with caution. Wikipedia, for example, is a good source of information for many things but on issues concerning health and food and safety it always pays to double-check because of numerous bogus sources. All this matters because colour
fgc plays a big part in our lives, and it means a great deal to the food and grocery industry.
Why we use food colours Food colours are used in moderation in New Zealand and for good reason. Colours can be added to foods to make up for colour losses following exposure to light, air, moisture and variations in temperature; to enhance naturally occurring colours; to add colour to foods that would otherwise be colourless; when a colour isn’t available in nature or because a natural colour won’t last very long on the shelf.
And then there is just to add a bit of fun and visual appeal in some products. Wouldn’t life be dull without colour? Take jelly as an example. For many children, a childhood memory is being served a plate of wonderfully vibrant and fun jelly. The experience wouldn’t be the same if it was a colourless, translucent blob of gel on a plate. Childhood memories are built on such things. A lot of the criticism around the use of added colours is designed to create the idea that the New Zealand-Australia regulation system does not have an excellent food regulatory work – that somehow our system is out of step with the rest of
Katherine Rich, CEO, NZ Food & Grocery Council. Email: Katherine.rich@fgc.co.nz
the world and that New Zealanders are at risk of serious harm. Nothing could be further from the truth.Trans-Tasman food regulation is overseen by Food Standards Australia New Zealand (FSANZ), a bi-national government agency which prides itself for its extremely robust and evidence-based approach as it develops and administers requirements for foods such as additives, food safety, labelling, and GM foods. FSANZ decisions continue to err on the conservative side. That is worth remembering when allegations arise that New Zealand is not careful enough when it comes to adding colours to our food.
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A big year for big government Trina Snow, executive director, NARGON.
Trina Snow reflects on 2012 and the tobacco display ban.
The National Party has surprised many in the industry by pushing through substantial restrictions on the display, promotion and sale of tobacco and alcohol. These, after all, are still perfectly legal products and centre-right Governments tend to be less interventionist and more hands-off in these matters. That has not been the case in New Zealand with the National-led Government and Labour-led opposition seemingly competing over who could be ‘tougher’ on liquor and cigarettes.This zeal for regulation is having an impact on consumers and stores. In 2012, the Government introduced a ban on tobacco displays in shops. It means that no tobacco products (including packets, cartons, packaging or advertising) should be visible in or on any sales outlets. Basically, customers should only glimpse a tobacco label at the very moment of purchase. Limited information about tobacco products may be provided by retailers but essentially only when specifically asked by a potential customer. However, even this information is restricted to just naming the tobacco products available and indicating prices. Before the last election, National had shown little enthusiasm for this policy. It had been recommended by a Select Committee but Health Minister Tony Ryall indicated National believed there was no international evidence such a ban would be effective and they would have to be convinced. There was no new evidence but, at the prompting of Tariana Turia and the Maori Party, National changed its position and supported the ban, which then quite rapidly became law. The ban on tobacco displays had a direct impact on supermarkets. New equipment and additional training was required, all of which had a cost. NARGON has always supported stores making individual choices about how they display tobacco (some chose not to display well before the ban), but we do not believe that the display of tobacco is a major factor in people’s
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choices around smoking. Friends and families have a far greater influence than cigarette packets at the checkout counter. Similarly, National has shifted position on the controversial proposal to impose plain packaging on tobacco products. It is hard to imagine previous National Governments supporting such a radical restriction on an industry, but it is expected to pass in 2013. There is a formal public consultation process underway, but Turia has indicated she expects plain packaging to be implemented soon and even the Prime Minister John Key has acknowledged it is likely. While plain packaging will not have a huge effect on stores, it is an indication that the Government is prepared to move far further in regulating these so-called “sin products”. Additionally, if plain packaging is introduced for tobacco there will be a push for products like alcohol and high-fat foods to be similarly restricted. In fact, those calls are already happening. The recently passed Alcohol Reform Act introduced a series of new restrictions on how supermarkets can display and sell beer and wine. Basically, supermarkets will have to designate one discrete part of the store as a permitted area for the sale, display, advertisement and promotion of alcohol. It cannot be the entranceway or the main thoroughfare; it has to be a “non-prominent” area. Supporters say separating alcohol from everyday products will reduce the “normalisation” of liquor. Pushing alcohol into a “non-prominent” area of the store is clearly intended to reduce the exposure of shoppers to alcohol and, presumably, to reduce sales. NARGON does not believe this provision is necessary but ultimately it is unlikely to significantly impact shopper behaviour or sales. However, supermarkets will need to ensure they comply with the new requirements fully and in a timely manner. In 2013, the National Government will be bombarded with calls for further regulations on “bad” products. There will be calls for fat tax, chewing gum tax, plastic bag tax, plain packaging for alcohol, nutritional information on alcohol, a minimum price for alcohol and restrictions on licensed trading hours. In each case, we hope the Government makes their decisions based on the evidence and not just on a desire to be seen to be “doing something” about these issues.
beef + lam b
Marketing in 2013 Rod Slater explains new strategies and trends. First off, I’d like to start by wishing you all a happy New Year. Here at Beef + Lamb New Zealand we’re looking forward to a very busy year which, we hope, will build on what was a very successful 2012. Last year saw the introduction of our next level Iron Maiden campaign which capitalised on post-Olympic opportunities. We just couldn’t ignore the success of kayaker Lisa Carrington, BMXer Sarah Walker, and paralympian Sophie Pascoe. In the coming year, we will be launching more television adverts, as well as looking to integrate the Iron Maidens into key events and other promotions. It’s going to be an exciting extension to what has already been a thriving campaign. On another front, social media became a huge focus for us in 2012, as it did for many other businesses. It has become part of everything we do and we feel it only strengthens our existing traditional campaigns. This medium provides us with the opportunity to strategically connect directly with consumers. Through Facebook and Twitter we are communicating directly with our target audience every day, helping to make them excited about the options beef and lamb offer and keeping red meat at the front of their minds when they’re planning their meals. 2013 is going to see this trend continue; it is undeniable that social media will be weaved even more
Rod Slater, intricately into our everyday lives this year, CEO, Beef + Lamb so we at Beef + Lamb New Zealand will New Zealand. be staying one step ahead of the trends to remain relevant in this key marketing space. And, when it comes to mitigating the negatives (we still face issues around our products with continual misinformation around cancer and health, to name just two, in relation to red meat), our zero tolerance approach to media misrepresentation will certainly continue to keep Beef + Lamb New Zealand active and there is little room for complacency. Events will also remain important to us in the coming year; we’ve always made the most of events as opportunities to interact, to create excitement and manufacture a talking point. This tried and tested marketing tool will see the 11th annual Steak of Origin and the 7th annual Glammies take place throughout the year. But we’ll also be introducing some new events with the Pure South Butchery Tri-Nations set to create a bit of hype in March at the Wanaka A & P Show.This event gives us the opportunity to profile the skill of butchery and the versatility of our product, at the same time as giving the industry something to get in behind. Seeing the Wedderburn Sharp Blacks come out on top of the Aussies and the Brits would be a great start to the year.
Iron Maidens Lisa Carrington, Sarah Walker and Sophie Pascoe. february 2013 FMCG
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FRESH & LOCAL Specialist resource writer John Clarke highlights developments in produce, fish and meat supply.
Poultry Excess turkey cuts are a very economical option at present with the hangover from the Christmas rush.
Fish & Seafood IN their PRIME Mangoes and pomegranates from offshore. Local stone fruit are at their very best and most economical. New season kumara, garlic, shallots and beans. New Zealand tomatoes, capsicums and courgettes are at their peak. Snapper, trevally and gurnard are available in abundance.
SHOT TO BITS
Photos: thinkstockphotos.com
Asparagus and artichokes. NZ citrus. Redcurrants and gooseberries.
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These mid-summer months are supposedly the best time for the inshore fish species. The snapper season is in full swing with plenty in the markets, though I always feel the price is a bit steep. It is the same for gurnard and sole - plenty around but the price is up there. The unusual summer weather so far has not helped the smaller inshore fishermen again this summer and perhaps this is responsible for the price and the somewhat inconsistent supply, but hopefully the constant strong winds will abate over the next couple of months and give these guys a break. However it is not all doom and gloom on the price front; kahawai, trevally, mullet and flounder are greatly underrated inshore fish in plentiful supply at present and inexpensive. Terakihi is a medium textured fish with very good white colour at their best and most numerous in summer/ autumn, so now is the time for this fish. Kingfish is one of our best fish. Supply is often tight as there is never enough quota but this month supply is at its peak and prices will be reasonable. Fresh Pacific oysters are not at their best this month but then on the other hand our greenshell mussels are fat at this time of year, inexpensive and great for consumers to throw on the Barbie, so well worth the effort to have these live shellfish on hand. Greenshell mussels will also be featured on page 22 of this magazine in the
first of an on-going series entitled ‘Fish of the Month’. This new column sponsored by Seafood New Zealand, will complement the fish and seafood section of ‘Fresh and Local’ and give valuable insights into the wonderful range of quality New Zealand seafood available to the FMCG sector.
MEAT The dreaded summer drought has arrived, feed is tight and prices are all down this month. Beef With feed short this year many farmers may have to hold stock longer to meet guaranteed local trade contract weights and this may mean a little tightening of supply going forward. The good news is - the price trend is falling and prices are down about 25c/kg live weight on last year. Sheepmeat Lamb schedule prices appear to have not yet bottomed out this season and with eastern areas of both islands experiencing dry weather we can expect to see a lot of lamb early this summer. The trend is falling and lamb is at present almost 15% lower than predicted. Cervena/farmed venison And more good news for the FMCG sector: venison schedules are now close to summer lows and are a massive $1.35/kg below last year. These prices make venison a reasonable option so now is a good time to reintroduce your customers to this product.
Fruit This is the fruity time of the year with all the berries, melons and stone fruit in abundance. The so called ‘Summer Fruit’ that is
Vegetables This is also a great time for New Zealand produced vegetables with all the traditional summer varieties in full swing. Courgettes are in great supply, so expect the price in the markets to
come back from the recent highs. It is the same for capsicums and aubergines with good supplies at reasonable cost now coming through. Tomato supply is at its peak with a very good selection of fully ripened varieties available. There are even a few of the outdoor-grown fruit available for those with a penchant for a more rustic type of tomato. All the locally grown beans are now also available including the round ‘French’ style, flatter Mangere pole and I have even seen a few runners coming in. Beetroot is most plentiful from November until April. Broccoli supply and quality has improved and is very good buying at present. Fresh sweet corn is arriving in bulk this month and the cost will only get better as summer progresses. All the annual herbs are in full swing with salad leaves and rocket in abundance. All the varieties of good quality new season kumara; Beauregard (orange, softer, sweet), Tokatoka, (yellow, firm, good flavoured), Owairaka and northern rose, (traditional red, very firm), are arriving in the marketplace. There are lots of good quality new crop potatoes all over the place and plenty of variety too. There is also a reasonable supply of the so called ‘Maori’ potatoes also coming through. These traditional varieties are becoming more and more popular with discerning consumers and well worth carrying. Buttercup and a few of the early pumpkin varieties are in the markets. New Zealand red onions are back, but leeks are not at their best this month. However, baby leeks are available and a good substitute. New Zealand garlic and shallots are available again also, though still pricey. Sadly the global artichoke and asparagus season is about finished for another year.
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stone fruit; i.e. plums, apricots, peaches and nectarines are the best buys this month and also there are still some good cherries around, though these will tail off this month. The first early new season Kiwi grown apples and pears have arrived in the market and these will be followed shortly by the main season varieties. Kiwifruit are around but the golds are likely to be in shorter supply this summer. This season’s Hass and Hayes avocados (pebbly skinned varieties) are everywhere. These are our best avocados but are of variable quality though well priced at present. The first of the round, green Reed variety have arrived in the markets. Fresh raspberries are well priced but will get more expensive this month and will be pretty well finished by April. Look also for blueberries through to mid-March, with blackberries about to hit the markets and loganberries are always around. The very short season for gooseberries and blackcurrants is almost over. All varieties of New Zealand grown melon – prince, water, rock and honeydew – are a now here in numbers. There are very few New Zealand grown grapes around, hard to find but the best flavoured for my money. From offshore, mangoes are the best buying and of very good quality, also the bananas in the marketplace at present are top quality with good supply of organic fruit coming in. Pomegranates from California have been around since the beginning of summer and more consumers have cottoned on to this amazing fruit.
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S FISH OF THE MONTH Seafood New Zealand explains the versatility and benefits of our ‘emeralds of the sea’.
eafood New Zealand recently launched Fish of the Month, a simple concept that puts the spotlight on one seafood species every month, pulling together research, information and graphics in an engaging way for New Zealand consumers and available online at fishofthemonth.co.nz. To many people, buying seafood isn’t just about ‘taste and texture’. It’s about knowing the price range, where and when they can get it, how they can cook it and how good it is for them. But today there’s even more to it than that. There is an increasing expectation that sustainability information is an important part of seafood’s consumer credentials. So Fish of the Month equips Kiwis with an array of easy-to-understand online information about consuming the selected species for all of its benefits, including sustainability. Fish of the Month is a great opportunity to get consumers to try new types of seafood or revisit old favourites with new recipes, all the while understanding that future generations will be able to enjoy our kaimoana too. Seafood New Zealand will feature each Fish of the Month in this column, giving the FMCG industry background to the seafood on offer, as well as links to its website for more information, including recipes. So what’s coming up for February? New Zealand’s very own ‘emeralds of the sea’, Greenshell Mussels, are under the spotlight this month.
Greenshell Mussels are sought after by seafood lovers the world over. They combine a stunning iridescent green shell with a plump, full-flavoured mussel packed with a wealth of well-known nutritional benefits. Not only are they high in protein and low in saturated fat, they are a good source of iron and Omega-3. Their culinary versatility makes them a perfect menu option that is healthy, satisfying and easy to prepare. For the summer months they are great simply cooked on the BBQ or grilled in the oven. As a ‘green’ food source, they are farmed on ropes suspended between a series of buoys, and they take all their required nutrients from filtering seawater. Nothing else is added. So it’s not surprising that New Zealand Greenshell Mussels are commonly referenced as one of the best sustainable seafood options. Not only are Greenshell Mussels enjoyed as a premium food item, they are also used in nutraceutical products, for their anti-inflammatory properties and promotion of general well-being. As a great all-rounder, Kiwis can’t go past Greenshell Mussels for their versatility, nutrition and health benefits, and year-round availability. For more information on the Fish of the Month, including some great recipes, such as Andrew Brown’s ‘New Zealand Greenshell Mussels with dynamite sauce’, visit fishofthemonth.co.nz.
About Seafood New Zealand Seafood New Zealand is the national body representing industry at a national and international level and adding value by promoting New Zealand seafood and its sustainable harvest, building public awareness of the health and nutritional benefits of seafood, as well as delivering science and policy support for its members.
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pro f ile
Culinary treasures from NZ sea gardens
I
kana produces a range of innovative and convenient products that aim to make it easier for more consumers to include nutritious Greenshell mussels in their diet. It’s a new sight on New Zealand supermarket shelves, which launched in 2012 and is already achieving great results in Australia and the USA. The Ikana brand is part of Greenshell New Zealand, a family business owned and run by Peter Vitasovich, who has been involved in the New Zealand seafood industry for over 35 years and is also chairman of Aquaculture New Zealand. Ikana organically farms its mussels in its own ‘Sea Gardens’, stretching
from the Coromandel to Great Barrier Island, and packs its valueadded products in a state-of-the-art factory, opened in 2012. The company has industry-leading traceability systems, allowing every mussel to be traced back to its exact harvest location. Being vertically integrated allows the entire marine farming and production process to be under Ikana’s control, resulting in consistently high product availability and quality. Ikana produces a range of convenient gourmet products, including Chilled Live Mussels in modified atmosphere packaging with 10-day shelf life, and frozen ‘Easy Steam’
mussels that use chef-designed sauces in microwaveable ‘Easy Steam’ trays, creating quality gourmet meals in five minutes. The unique Ikana brand and its products also appeal to international markets, with the Easy Steam range being nationally listed by Woolworths Australia in late 2012. Innovation is a key part of the Ikana brand and this was recognised at the latest New Zealand Food Awards, where the Ikana Chilled Live Mussels pack won the AsureQuality Food Safety Award. Learn more about IKANA at ikana.com or follow us on Facebook – facebook.com/IkanaNewZealand.
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Salad season Photo: thinkstockphotos.com
Salads and dressings are ‘best sellers’ in summer as many consumers seek light and healthy meal solutions.
T
o complement its range of premium extra virgin oils, Olivado has introduced a new range of “Natural” products for 2013, says Pip Llewellyn, business development manager. One of these is a completely natural dressing: Avocado Balsamic Dressing. The oil of local avocados from Kerikeri and the Bay of Plenty is blended with aged balsamic vinegar, lemon juice, Dijon mustard, garlic and black pepper. No preservatives or additives, no sugar or sweeteners are added. Olivado has identified that consumers want both taste and goodness, hence the choice of a natural dressing for the expansion of the range. The product was trialled at the Auckland Taste Festival in November, with great
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success, in preparation for its market launch in supermarkets in 2013. With the expansion of products, the branding of the company has been updated to provide a strong coherent product message. The branding must work in the 25 countries Olivado now sells to, explains Llewellyn. She says: “Olivado’s new branding highlights its premium market position with a new by-line, ‘Taste the goodness’. On each product, the new labels define The Story, The Taste and The Goodness.” She adds: “Consumers want more information about what is in the product, tasting notes, how to use it and why it is good for them. With recent reports having confirmed that many extra virgin olive oils are not what they say they are, consumers need better information. Olivado guarantees its range of natural oils that include Extra Virgin Avocado, Macadamia Nut and Olive Oil, Avocado Lemon Zest and Omega Plus Oil.” A new blend of Natural Organic Omega Oils (extra virgin avocado oil, olive oil and flaxseed oil) has also been introduced to replace the Omega Plus. This better appeals to the vegan and vegetarian market wanting only natural organic products, and also makes an excellent natural salad dressing, explains Llewellyn. “Olivado’s range of premium oils recorded sales increases of 20% in
Progressive supermarkets and 15% increases across the whole market,” she says.
Heinz Wattie’s Dressings are a flavour-driven market and mayonnaise continues to drive growth in the dressings category, says Melanie Taylor – marketing manager Dressings & Table Sauces (Heinz Wattie’s). “Heinz Wattie’s leads the dressings category and is growing ahead of the market at +13.8% (Nielsen, T. Dressings Val. MAT to December 2, 2012),” she says. Heinz Wattie’s dressings include Eta; Eta Gourmet; Heinz; Heinz Seriously Good and Weight Watchers. Among new product launches in the last 12 months are Eta Southwest Chipotle Flavoured Dressing 250ml; Eta Kiwi-style Onion Mayonnaise 250ml; and Heinz Seriously Good Aioli 460g (jar format). “The new Eta Dressings have been performing well since launch in September 2012,” comments Taylor. “As the dressings market is so flavourdriven, it is important that new variants are launched on a regular basis to keep consumers engaged with the category. Eta strives to keep abreast of international and New Zealand flavour trends. “Due to the success of the Heinz Seriously Good Aioli Squeezy in 2011, a larger jar format (460g) was
s alads & dressin gs launched in September last year to appeal to heavy users who think our Aioli is seriously good. The Heinz Seriously Good Aioli Squeezy (295ml) is now the fifth ranked dressing in the total dressings market (Nielsen, Val. QTR to December 2, 2012),” says Taylor.
Snap Fresh Foods Stephen Twinn, sales and marketing manager, Snap Fresh Foods told FMCG: “We have two exclusive salad brands in Countdown; Krispkut and Fresh Harvest. We also supply Vital Vegetables and Farmer Bill’s Baby Carrots to Countdown, New World and Pak’nSave and Sproutman to Foodstuffs stores. “And 2012 was a busy year for NPD. We launched the Fresh Harvest brand exclusively into Countdown, initially eight SKUs of sprouts in August, followed by four new family salad tray packs in December.We also added two new slaws to the Krispkut range, Japanese Style Slaw and Super Slaw, and four gourmet salad kits in November in time for summer this year. So that means 18 new SKUs
into Countdown in 2012. “We also rebranded Sproutman sprouts in October to give the brand a fresh look. Vital Vegetables was also launched to all supermarkets from October with five new skus. “All products have met or exceeded initial expectations. Sprouts overall have achieved double digit growth (YOY), and slaws are performing at the same level. With a much better summer this year weather-wise, compared to last year, salads are now starting to really perform. “We have a few more innovations up our sleeve, which will go to market starting from Autumn 2013,” says Twinn. He adds: “Fortunately there continues to be a lot of noise about eating healthy, fresh, locally grown food. The high exposure of inspirational cooking programmes and a resurgence of ‘home-made’ fare is assisting sales. For example, traditional recipes like cheese scones are reinvented with parmesan and rocket leaves, and pizza topped with baby leaf spinach. We are seeing coleslaws in good growth especially those with a modern twist and with dressings to provide a ready side meal solution. Consumers are also being more adventurous with spinach, cos and rocket in addition to popular mesclun mixes.” Visit snapfreshfoods.com; krispkut.co.nz and facebook.com/ krispkut for more information.
THE BREAKDOWN Current MAT to 30 December 2012 Total Salad Dressings and Vinegar: $68.290m Value % Chg vs YA 6.8 T. Dry Salad Dressing Mixes: $322,849 Value % Chg vs YA 12.5 T. Mayonnaise: $35.153m Value % Chg vs YA 10.2 T. Other Salad Dressings: $6.996m Value % Chg vs YA 4.3 T. Pourable Dressings: $15.385m Value % Chg vs YA 4.8 T. Vinegar: $10.434m Value % Chg vs YA 1.0 Total Prepacked Salads: $74.429m Value % Chg vs YA 1.4 *Nielsen New Zealand ScanTrack (Databank)
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lll#da^kVYd#Xdb FEBRUARY 2013 FMCG
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Specialty breads on the rise What’s new in the supermarket bread aisle? Specialty bread suppliers share their product updates with FMCG.
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W
hile the total bread category is showing signs of decline in New Zealand supermarkets, specialty breads and glutenfree offerings are becoming more and more popular with consumers. Hansells Food Group’s range of Toscano breads for example offers a level of authenticity that continues to grow in demand within the NZ bread market. The range features traditional breads baked in Italy and New Zealand consumers can serve the Toscano breads with pride, says Rachael Bryers, contract senior brand manager for Hansells Food Group. Toscano’s strategy to drive authenticity into the specialty bread market is being well received by retailers. Authenticity and quality have always been the focus for Toscano, reflecting the adventurous and passionate nature of the country they come from. Consumers enjoy being able to “finish off ” the breads by baking for a few minutes or adding their favourite toppings, and the Ciabatta loaf and Pizza Bruschettina continue to be the most popular products in the range, comments Bryers. “Last year we rationalised the range, deleting the lower selling skus and launching the authentic Toscano pizza base. The launch has been very
bread THE BREAKDOWN Current MAT to 30 December 2012
successful, selling 60,000 pizza bases to stores per month and helping the brand grow by 15% vs year ago,” says Bryers. (Data is ex-factory).
ABE’S Bagels Bagels are low in fat with no cholesterol, artificial colours, flavours or preservatives making them a great option for breakfast, lunch and dinner. The ABE’S Bagel Bakery range of fresh bagels are steam-baked using real bagel dough and only the finest, quality ingredients. The result is that unique, dense chewy texture that bagel lovers world-wide adore. And it seems New Zealander’s agree, consuming over five million bagels from ABE’S bakery each year. In response to general consumer trends toward healthier food as well as a demand for a “grainy” bagel, ABE’S introduced the ‘Multigrain bagel’, which is a good source of pro-
tein and fibre. “With increased levels of protein and fibre, ABE’S Multigrain bagel is comparable to the top selling multigrain bread products on the market, so they are a great alternative to toast,” says Aaron Shaw, national sales manager. “We expect the multigrain offering to attract new consumers to bagels and therefore generate incremental volume to the specialty breads category.” With the introduction of its newlook packaging in December arose the opportunity to develop some of the under-performing skus within the range. “We realized ABE’S ‘Baby’ Bagels (8-pack) were predominantly being used for entertaining so we renamed them more suitably to ‘Mini’ bagels and extended the offering to a 10pack,” says Shaw. The ABE’S range of fresh bagels (4-pack) includes The
Total Bread: $481.151m Value % Chg vs YA -3.5 T. Bagels: $5.350m Value % Chg vs YA -3.7 T. Buttered Bread: $8.923m Value % Chg vs YA -5.0 T. Crumpets: $11.679m Value % Chg vs YA -0.1 Total Easter Buns: $5.269m Value % Chg vs YA -35.4 T. Fruit: $5.043m Value % Chg vs YA -20.6 T. Garlic: $154,270 Value % Chg vs YA 13.4 T. Heavy Health: $61.884m Value % Chg vs YA 3.5 T. Indian: $2.324m Value % Chg vs YA -1.7 Total Light Grain: $130.466m Value % Chg vs YA -0.6 T. Meal: $53.364m Value % Chg vs YA -9.1 T. Muffins: $13.470m Value % Chg vs YA 4.4 Total Other: $4295 Value % Chg vs YA 1793.2* T. Other Flavour: $683,738 Value % Chg vs YA 1024* T. Other Specialty: $22.866m Value % Chg vs YA 4.0 T. Par-Baked: $4.022m Value % Chg vs YA 3.6 T. Pikelets: $3.746m Value % Chg vs YA 11.4 T. Pita: $11.981m Value % Chg vs YA 0.8 T. Plain Buns & Rolls: $20.423m Value % Chg vs YA -20.9 T. Sweet Buns & Rolls: $1.549m Value % Chg vs YA -15.6 T. White Bread: $117.529m Value % Chg vs YA -4.7 * This growth figure is high because the category includes Freya’s Sandwich Thins, which were new to the market in 2012. *Nielsen New Zealand ScanTrack (Databank)
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Danny’s Real Pita.
Natural, Perfectly Parmesan, Super Sesame Seed, Cinnamon & Raisin, Marvellous Mini (10-pack) and NEW Magnificent Multigrain (available 4th February).
Danny’s Real Pita Danny’s Real Pita Bread Company was established in 1988. At that time, Danny Eliahu together with his family brought a unique type of bread product – the Pita pocket – to New Zealand. With his son Yaron, they developed a quality pita that can compete with top pita breads around the world with its unique texture, taste, aroma, softness and strength. Today Danny’s Real Pita is distributed in most New Zealand supermarkets over both islands, holding the largest market share of 38% (Aztec Nov 2012), says Yaron Eliahu. “Danny’s Real Pita is the only pita
supplied fresh daily (our fresh line) in Auckland, Bay of Plenty and Wellington regions. Pitas can deteriorate by the hour and to get the best quality and performance out of a pita you need to consume it as fresh as possible,� he explains. “That’s why at Danny’s Real Pita we emphasise the way and time we bake and distribute it so you’ll have it just a few hours after it’s been baked.� A new product launched last year was the Mediterranean range with three different tastes from the region: Moroccan, Turkish and Italian. Each product is uniquely designed using fresh spices from its country of origin. These pitas are designed to give consumers a fresh aromatic taste when warmed in a toaster. “Although they are stocked only in Pak’nSave and New World stores,
their growth in those markets is fairly steady and supported with in-store demonstrations,� says Eliahu. He adds: “We have a few new product ideas that will accommodate our range and culture well. Danny’s will keep developing high quality products that will give you a healthy culinary experience.� However, details of the new launches remain a closely guarded secret for now. Danny’s Real Pita Products have always been manufactured naturally free of preservatives, additives and nuts. “Except for our filled range, our products are also dairy free,� says Eliahu. As his dad Danny likes to say: “We have six ingredients: flour, yeast, water, salt, sugar . . . and LOVE�. Visit dannys.co.nz for more information or go to facebook.com/ pitabreadnz .
Good Honest Products Good Honest Products founder and director Steven Illenberger is now well underway with his latest food related venture, bringing genuine boiled bagels to the bagel connoisseurs of New Zealand. “Our primary product range sells under the Good Honest Bagels brand, and is now retailed by supermarkets throughout the South Island,� says Illenberger. Good Honest Bagels came onto the market in July 2012 and the response
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bread from customers has been excellent. The timing coincided perfectly with the re-launch of the Food Show in Christchurch, with Illenberger winning a free stall at the show for the quality of his new products and business objectives. There are currently six different types of bagels in the range and the point of difference for this product, as with all Illenberger’s recent food businesses, is a focus on genuinely good food, produced without additives or preservatives, using authentic traditional techniques. “In the case of bagels, that means they are made from scratch without pre-mixes or preservatives, and boiled before baking, unlike the majority of supermarket brands, which are steamed and may have gluten added to give the expected chewiness that defines a mouthful of bagel,” comments Illenberger. Never one to turn a good idea down, he still has plenty of variations and related products up his sleeve, drawing on his experience with successful artisan style bread bakery Breads of Europe and cake bakery Divine Desserts. In addition to the bagel range, Good Honest Products also sells Good Honest Mulled Wine and its delicious macaron range into supermarkets, cafés and food service businesses around Canterbury and the South Island.
Bakeworks “Bakeworks have the established Liberte gluten-free bread brand throughout most supermarkets in New Zealand, which has seen a 17% growth over 2012 (according to Aztec quarterly results from Oct 2011 to Oct 2012),” says Kirsten Unger, business director Bakeworks. Unger says: “With other large manufacturers entering the market in 2012, we have seen an enormous growth to this category overall. In November 2012 we were excited to launch a new baked product called the ‘Pullapart’ bread. This is a slightly different concept but the uptake since its release has been incredible. In order to meet our increased production demands, we will shortly be moving to brand new purpose built premises in Henderson, which couldn’t come at a better time. We are fitting it out with more ovens and larger equipment to streamline our processes and increase our efficiencies. And with Easter our next festive break, we start the production of our amazing gluten-free Easter Buns at the end of February. This is going to be an exciting and busy year for us at Bakeworks!”
Venerdi Auckland-based Venerdi currently supplies the brands Venerdi (organic) and Gluten Freedom to NZ supermarkets. Both are made up of glutenfree breads and small goods.
CEO Tim Grainger told FMCG: “We are about one year into supplying Gluten Freedom to this market and have seen it grow steadily to make up 3.9% of all gluten-free bread and buns sold (Aztec). Particularly, people are enjoying our ‘Brown loaf ’, which is a light brown loaf with flax fibre, red sorghum and, psyllium husk providing colour and great flavour. “In the next few months our focus is not on launching new product but on finding out what customers like and would like to see improved in our current ranges. “We see the gluten free market continuing to value health, but we are also choosing products that are user friendly and find people are enjoying the wider range of products for different occasions. “I feel we can offer some great news to customers in both these areas as we use some very functional ingredients that create good texture, and most importantly to us, they have very healthy properties. We are currently in development and testing and will let customers know when we have validated our health propositions and perfected our texture. We’ll be talking about this on the pack, so you wont have to go far to see it.” There will also be some new products available from Venerdi to the supermarkets soon that are proving themselves in the hospitality sector now.
Cottage Lane Authentic Artisan Bread is crafted in the Wairarapa by 3rd generation family bakers Breadcraft. Baked in a sophisticated European stone oven, Cottage Lane is healthy and natural with no preservatives or additives. www.cottagelanenz.co.nz
Cottage-Lane
@CottageLaneNZ FEBRUARY 2013 FMCG
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Health & Beauty Aisle FMCG takes a snapshot of the hand, foot and bodycare categories in NZ supermarkets.
B
io-Oil has established itself over the years as a leading skincare product that has proved to be extremely versatile in its uses and is trusted by many people worldwide, which is why it is the No. 1 skincare product in 11 countries, says Kate Feek, senior brand manager BDM Grange. She explains: “In New Zealand, the Bio-Oil 60ml bottle is the Number 1 ranked skincare product across national combined markets (grocery & pharmacy: Value, MAT to 12/08/12). It is available in two sizes throughout most supermarkets – 60ml and 125ml. Because of its versatility, there is always something new that consumers can learn about Bio-Oil, which is why it is such a great brand to work with. “Its combination of natural plant oils and vitamins that are delivered to the skin through PurCellin Oil™, which is a “dry” oil, means the skin will not be left feeling greasy or sticky, but instead will be left feeling replenished of its natural oils which are so often stripped away by factors such as extreme weather or the drying effects of air conditioning. And because it is formulated for use on the face as well as the body, it makes it an easy product to use as part of a daily routine. There are also some wonderful extra benefits of using Bio-Oil, such as it makes a great hair conditioning treatment
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oil, particularly this time of year if you love swimming. “This year sees the 10-year anniversary of Bio-Oil being launched in New Zealand – so there will be some great celebrations later in the year,” says Feek.
Foot & heel care During the summer months many people realise how prone their feet are to dry, cracked skin. Du’it Foot & Heel Balm is free from lanolin, paraben, petroleum and artificial fragrance, but is effective at tackling rough and severely cracked skin. Kate Feek comments: “It is also versatile enough to be used on knees and elbows, which are also prone to extreme dryness and flakiness. The Foot & Heal Balm is also suited to diabetic foot care and sensitive skin types, and is recommended by podiatrists, dermatologists and diabetes educators. “Du’it also includes a couple of hand products in its range, designed specifically with dry, cracked skin in mind, or for those who do a lot of work outdoors or who need repeated washing. Du’it Tough Scrub is a non-solvent exfoliating hand scrub that helps remove grease and dirt from hands more effectively than soap. Du’it Tough Hands helps to heal and condition dry cracked skin, whilst also acting as a protective barrier against future wear and tear,” says Feek.
hand, foot & bodycare Scholl foot care Susan O’Brien, personal care marketing Reckitt Benckiser told FMCG: “Scholl is the market leader in foot care and has a range of foot care products covering comfort, aid and care for New Zealanders feet; some of the brands include Scholl Eulactol foot cream and Scholl Party Feet. Consumers are aware of our hard skin and cracked heal products, as well as wart treatments and orthaheel products due to our ongoing commitment to year round consumer advertising. Education is very important in this category as is having a full portfolio to address all common New Zealand foot care problems.” Traditionally the supermarket environment has catered largely to foot odour solutions. Scholl has launched into supermarkets recently to expand the category beyond odour into foot comfort, aid and care. “New Zealand is unique in the fact that we are a largely ‘barefoot’ or open shoe or jandal nation, and our feet are more readily exposed to a regular beating. We have a high incidence of hard skin, cracked heels, warts and verrucas (especially children) and of course blisters and corns,” explains O’Brien. “On average one in three people* in grocery stores have a foot issue they cannot find a solution for, due to the fact that there is no dedicated foot care area in most supermarkets.
THE BREAKDOWN Current MAT to 30 December 2012 Total Hand Body (Excl. Baby): $20.101m Value % Chg vs YA 6.7 T.Body: $17.547m Value % Chg vs YA 6.7 T. Hand: $2.554m Value % Chg vs YA 6.2 Total. Foot Care: $1.226m Value % Chg vs YA 33.7 *Nielsen New Zealand ScanTrack (Databank)
And 93% of people walking through grocery supermarkets have suffered at least one foot care related condition in the last 12 months – 30% of these did not get treatment; 70% obviously do treat with something, but this may be a non grocery purchase; 25% of these purchased an incorrect treatment (eg using hand cream to treat cracked heels)*. This represents
a huge opportunity to cater to previously unmet consumer demand in our regular grocery shopping,” says O’Brien. She adds: “Scholl is the only foot care brand that caters to the entire range of foot care related issues covering the three pillars of comfort, care and treatment, and dedicated to ongoing innovative solutions in foot care specifically. All Scholl packaging clearly shows consumers what the treatment is for and is readily identified in store as the ‘range of yellow’ that has become synonymous with foot care.”
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Look out for new Scholl Softening Cream for hard skin, visibly softer skin in seven days. * Sources: 1. Incidence /Treating (claimed) Harris U&A 2006; 2. Penetration (estimate) Retail audit data 09 – CPS (Consumer Panel Service) Nielsen and other suppliers.
Global Products Global Products has the Silk brand within the hand care category in New Zealand supermarkets, with its hand wash range. Nigel Tapsell, national sales manager Global Products says that in his experience antibacterial skus continue to increasingly appeal to the consumer. “Both the Golden Honey and where stocked, all five Silk branded varieties – Golden Honey, White Pearl, Aloe, Ocean & Rose – appear in the top 20 SKUs of their respective segments,” adds Tapsell.
ecostore The range of body care products from ecostore includes hand wash,
“Ecostore has been taking a precautionary approach to the ingredients we use for more than 20 years, which means that if there is any doubt about the safety of an ingredient for people’s health or for the environment, we will find a safer alternative.” Malcolm Rands, CEO, ecostore 32
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body wash and bar soaps, as well as indulgent moisturisers; hand cream, body lotion and body butter. The skin is our largest organ and ecostore believes that what goes on it is just as important for your health as what you eat. Its products are formulated with gentle plant-based ingredients and blended essential oil fragrances to make it easy to cleanse and nourish your skin without removing the skin’s protective oils. Ecostore works with a world-class team of chemists, led by Sir Ray Avery, to formulate its plant-based body care products with consideration for the health and wellbeing of the people who use them. With respect to consumer trends, global marketing communications company JWT predicts that detoxifying will be one of the big consumer trends for 2013. They say: What was once a fringe activity – cleansing one’s body and environment of all things toxic and carcinogenic – is going mainstream as awareness of and anxiety about toxins heighten. Health and wellbeing have always been a priority for ecostore, as founder and CEO Malcolm Rands says, “Ecostore has been taking a precautionary approach to the ingredients we use for more than 20 years, which means that if there is any doubt about the safety of an ingredient for people’s health or for the environment, we will find a safer alternative.” Allie Downes, product manager (Australasia) says: “New products launching March 2013 include ecostore Lip Balm, using sweet almond oil and beeswax to naturally soothe and protect dry lips, without the use of nasty chemicals such as parabens and mineral oil.This will be available in Peppermint and Beeswax (fragrance free), in both a stick and a jar format to suit individual consumer preference.”
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Baby & Childcare Which factors are influencing baby and childcare trends in New Zealand? FMCG talked to some of the stakeholders in this category to find out what’s on the horizon.
A
ccording to Statistics New Zealand, NZ birth rates are down by three percent to 60,462 births per annum and well down from the 2008 peak of 64,540. The infant feeding category is valued at $161.9 million (+3.3% Nielsen,Total Supermarkets MAT $ to December 2, 2012) and this reflects a significant slowdown following the double-digit growth of the previous four years.The slowdown is a result of a dramatic fall in infant formula sales following the NZ Government enforcement of a law in October, requiring exporters to be registered as Dairy Exporters, says Carey Wilken, group marketing manager (Infant), Heinz Wattie’s. But it’s not all bad news, with some segments still showing good growth. Wilken explains: “There are five
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segments in the infant feeding category including infant formula & toddler milks ($134.4m, +4%), wet baby food ($22.2m, -0.8%), dry cereals ($1.9m, +3.4%), dry snacks ($3.1m, +5.7%) and fluid/juice ($0.3m, -13.1%) (Nielsen, Total Supermarkets MAT $ to December 2, 2012). Heinz Wattie’s remains a strong market leader in all infant feeding segments, apart from infant formula and toddler milk where it holds the No. 2 position. Heinz Wattie’s offers a comprehensive range of products in wet and dry baby food as well as infant formula and toddler milk drinks. Wattie’s also provides a wide range of infant feeding educational materials to Plunket, parent centres and Well Child providers.” Heinz Wattie’s brands in the wet baby food segment include: Wattie’s, Heinz, and Farex. Wilken comments:
“The $22.2m wet baby food market has declined -0.8%, with the falling birth rate and ongoing recession being contributing factors. Heinz Wattie’s remains the strong market leader with 67.3% share. “There has been a noticeable change in mix as consumers adopt the higher priced but more convenient pouch format versus the traditional can and glass. On the MAT, pouch accounts for 27% of wet baby food. Heinz Wattie’s has been very active, launching Heinz Organic pouches last April; exciting new flavours for Heinz Simply pouches in May and October and extending the trusted Farex brand into the pouch format in October. “Wattie’s baby food is approved by Plunket and recipes are developed in consultation with an independent nutrition advisory group thereby assuring top quality nutrition, appropriate texture and complete food safety,” adds Wilken. “Research shows that mum shops the category according to the age and stage of her baby. It is therefore important that a wide range of tastes and textures is available within each stage. With clear stage labelling, Wattie’s has made baby feeding as easy as 1, 2, 3: • Stage 1 blue label products are ‘pureed’ simple fruits, vegetables and rice and are all suitable as first foods for babies just starting on solids. • To introduce more challenging tastes and textures, Wattie’s red label, stage 2
babycare products are available in a wide range of flavours with ‘mashed’ textures. • Additionally, the yellow label stage 2 products provide baby with nutritious treats such as custards and desserts. • Wattie’s stage 3 green label products introduce baby to more exotic tastes and ‘chunky’ textures. Organic baby food remains in strong growth, accounting for 37.6% of sales (Nielsen, Total Supermarkets MAT $ to December 2, 2012). Heinz Wattie’s cereals brands include Farex and Wattie’s. Wilken comments: “The $1.9m cereal category has shown a steady +3.4% growth. Heinz Wattie’s with the Farex and Wattie’s brands has 96.2% share of this sector.” Wattie’s cereals received a fresh new look in October 2012 and for added convenience, are now packed in resealable stand-up pouches. Heinz Wattie’s snacks brands include Heinz and Farex. “The $3.1m snack category has shown a good +5.7% growth through new launches,” says Wilken. Heinz Little Kids had a major packaging relaunch in 2012, making the range more contemporary and appealing for toddlers. “The relaunch has contributed to Heinz strong growth +28.7% in LQ. Heinz Little Kids remains committed to providing a good range of delicious, nutritious and portion-controlled snacks for little ones,” explains Wilken. Heinz Wattie’s infant formula & toddler milks brand is Nurture.Wilken says: “The baby & toddler milks segment has seen a dramatic change, from a strong 60%+ growth last year to -46% in LQ, following the enforcement of a law requiring formula exporters to be registered as dairy exporters. “Nurture’s February relaunch, including the introduction of Nurture Gold with Digesti Plus to meet the consumer need for healthy digestion, has secured Nurture a firm No. 2 spot. Nurture Gold is the only brand with both prebiotics and probiotics to support healthy digestion,” Wilken explains.
THE BREAKDOWN Current MAT to 30 December 2012 Total Baby Accessories: $8.222m Value % Chg vs YA -9.5 T. Infant Clothing & Bibs: $506,399 Value % Chg vs YA -29.1 T. Infant Cosmetic Products: $1.600m Value % Chg vs YA -19.0 Total. Infant Feeding Accessories: $5.773m Value % Chg vs YA -3.4 T. Infant Nursing Products: $43,760 Value % Chg vs YA -0.5 T. Infant Toys: $299,245 Value % Chg vs YA -19.8
T. Antibacterial Treatments: $289,917 Value % Chg vs YA -3.3 T. Baby Creams: $2.597m Value % Chg vs YA 2.4 T. Baby Jellies: $791,951 Value % Chg vs YA -3.1 T. Baby Medications: $886,273 Value % Chg vs YA -13.5 T. Baby Skincare: $2.242m Value % Chg vs YA -3.1 T.Bath Additives: $1.906m Value % Chg vs YA -14.9 T. Bodywash & Shower Gel: $447,863 Value % Chg vs YA -8.0
Total. Baby Food: $155.339m Value % Chg vs YA -3.5 T. Baby Cereals: $1.941m Value % Chg vs YA 3.5 T. Baby Drinks: $321,645 Value % Chg vs YA -14.0 T. Baby Food: $22.217m Value % Chg vs YA -0.5 T. Baby Rusks: $3.112m Value % Chg vs YA 3.5 T. Infant Formulas: $127.748m Value % Chg vs YA -4.3
T. Conditioning Aids: $146,569 Value % Chg vs YA -6.8 T. Moist Towelettes: $25.892m Value % Chg vs YA -3.0 T. Nappy Cleaners/Sanitisers: $447,416 Value % Chg vs YA -32.5 T. Nursing Pads: $1.405m Value % Chg vs YA -6.2 T. Shampoo: $1.494m Value % Chg vs YA -2.8 T. Solid Soap: $384,468 Value % Chg vs YA 6.1 T. Talcum Powder: $1.727m Value % Chg vs YA -2.6
Total Baby Needs: $40.658m Value % Chg vs YA -4.1 *Nielsen New Zealand ScanTrack (Databank)
Philips AVENT Among recent launches are Philips AVENT Feeding Bottle (330ml) and the Philips AVENT Drinking Cup. This revolutionary drinking cup helps toddlers transition to grown up drinking, without the mess. The unique spill-proof valve is lip activated and allows drinking from all around the rim, just like an adult’s cup.
Philips AVENT Disposable Breast Pads are available in three packs: Day 60pk, Day 30pk and Night 20pk. The range is convenient, dermatologically tested and has been developed with a breastfeeding expert. National retail manager Karen Kelly comments: “The Philips AVENT Drinking cup started to hit shelves in FEBRUARY 2013 FMCG
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cate go r y c h e c k November, so it’s relatively early days, but sales have been strong. The Breast Pads launched in July and where ranged are performing well driving value back into the category, especially the Day 60pk that offers a bulk pack at $19.99, offering consumers a good value offering per pad.” She adds: “The infant accessories category including Breast Pads is $8.8m (Aztec data to 30/12/12). The opportunity for supermarket retailers is to own the repeat purchases of bottles, teats, cups and soothers. Nielsen research shows over 40% of consumers purchase and look to buy bottles, teats and soothers from supermarkets. An overwhelming figure of 71% purchase non-spill cups from the supermarket (Nielsen Project Blossom 2008).”
Nuztri Nuztri is a new local brand in the infant and toddler formula milk category.While still negotiating to get into major chains, the brand name is often seen in trade and consumer magazines such as FMCG, Little Treasures and Littlies. It also appeared at the Auckland Baby Show last October. Best Health Products national sales manager, d’Artagnan Kennedy, who was a category manager and store
manager for Progressive for many years, comments: “The entire range of Nuztri formula milk (from birth to three years of age) is made in New Zealand from New Zealand pasturefed milk. Aimed to be a long-term player in the local market, we are less concerned with margins and production costs, despite the higher costs for using New Zealand based manufacturing facilities and New Zealand sourced milk. “Safety is the number one issue for most parents and NZ made food products are considered to be safer. So we expect a considerable portion of consumers who are currently using imported products, or products largely made from imported ingredients, will switch to NZ made formula products once they are widely available. A survey carried out at the Auckland Baby Show shows most people prefer a NZ made product if price is similar, or slightly higher, than an imported product. “The growth of local consumption for infant formula may be limited. However, we believe toddler formula milk has significant potential to grow. Normal milk lacks many essential vitamins and minerals for young children. This is evidenced from the alarmingly high iron deficiency rate among NZ children. “We also noticed the surging demand for NZ formula milk products from tourists and local residents and students who are travelling to Asian
countries such as China, Korea and Japan. Growth from these groups will be very strong in the coming years. “Unlike other players, we will market formula milk products along with fortified milk for the general population, especially pregnant and lactating women,” says Kennedy.
Global Products Global Products has both the Silk and Baby Essential brands within the babycare and childcare categories in New Zealand supermarkets. These brands include products such as baby wipes, baby oil, lotion, powder, shampoo and accessories. National sales manager Nigel Tapsell says: “Baby wipes have continued to grow in popularity. Consumers are using them for a variety of uses and find having a pack in almost every room of the house convenient, not too mention travel packs in the glove box of the car. Many consumers are looking for a more environmentally friendly option and therefore select Silk Biodegradable Baby Wipes that are available in both the standard 80 pack and the Travel Pack of 20. Silk Biodegradable Wipes are 100% vegetable fibre. “Wipes/Moist Towelettes is the largest segment within the baby needs category. Silk Baby Wipes are the market leading brand in TKA within the Wipes/Moist Towelettes Segment (Aztec MAT 1/7/2012 KG Sales),” explains Tapsell.
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babycare
Pigeon BDM Grange distributes the Pigeon range of baby and mothercare products in New Zealand. Primarily available in supermarkets nationwide, says Lisa Linton, brand executive BDM Grange. She comments: “The most iconic and well respected Pigeon products in New Zealand are the Disposable Breast Pads, which are well known for their superior quality. Ultra-slim and lightweight pads have a super absorbent core to keep skin clean and dry. They are individually wrapped for hygiene, specially contoured with non-slip adhesive tape for maximum comfort. Our customers tell us that they are the only ones that are really reliable for both day and night thanks to the absorbency. They are recommended by midwives,
giving the credibility this product deserves.” Other products available include the very unique Pigeon Training Toothbrush set. Many parents do not realise that as soon as a baby starts teething you can begin gently cleaning their teeth. The training set includes a starter toothbrush for the baby to hold and chew on, which helps with the sore gums that come from those first teeth. The second brush is used as a transition to familiarise babies with the brushing movement and the third brush is for use on all milk teeth from around 12 months on. These brushes are small and therefore easy for little hands to use. They also have a safety device to prevent choking and are made from a very soft material. “Pigeon value the needs of both mother and baby with products which offer comfort and convenience,” says Linton.
Bio-Oil Whilst Bio-Oil is usually situated within the skincare section, one of the main reasons women love to use BioOil is to help prevent stretch marks from occurring during their pregnancy, explains Kate Feek, senior brand manager BDM Grange. “For some it is the first time they are really introduced to the product, and often because they have been
recommended it by someone they know. As a brand, Bio-Oil continually receives many testimonials worldwide from women who want to express their delight from the results they have seen. Bio-Oil was also recently voted ‘Best Stretch Mark Product’ by the readers of a leading baby magazine in New Zealand. “To achieve the best results, we do recommend that Bio-Oil is massaged into the skin twice daily from the start of the second trimester until after the birth, but there is no need to stop using the product once the baby is born as it is a good all-round moisturiser. It can also help fade pigmentation and dry patches that are often associated with pregnancy. “Another benefit of Bio-Oil is to help minimise the appearance of any existing stretch marks or scars, including scars following an operation, such as a caesarean section. Bio-Oil is the product most recommended by doctors for scars and stretch marks, as well as being the product most recommended for the appearance or prevention of stretch marks by midwives (Colmar Brunton 2012).”
Huggies Kimberly-Clark has a broad baby and childcare portfolio under the Huggies masterbrand. The product portfolio includes Huggies Nappies, Huggies Nappy-Pants, Huggies Wipes, Huggies
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Love at first sight...
Dedicated to the Benefits of Breastmilk Pigeon ultra-slim and lightweight breast pads have a super absorbent core with breathable waterproof coverings. Ultra soft and contoured for a comfortable fit, Pigeon pads can be worn with confidence.
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FMCG FEBRUARY 2013
“Bio-Oil is the product most recommended by doctors for scars and stretch marks, as well as being the product most recommended for the appearance or prevention of stretch marks by midwives (Colmar Brunton 2012).” Kate Feek, senior brand manager BDM Grange Change Mats, Huggies Pull-Ups, Huggies Little Swimmers and Dry Nites. Huggies has a product for every age and every stage of a baby’s development, from newborn to active baby, to toilet training and right through to bedwetting in young children. Charlie Ewart, senior brand manager told FMCG: “The nappy category is worth $106.3m with over 222 million nappies sold every year from supermarkets alone. Whilst the category is growing at 2.9% (value), long term growth forecasts are actually impacted by the annual birth rate, which is declining by 2.98%. Within the nappy category, the nappy-pants segment is growing and represents 11.3% of the category. Each year there are new mums entering the category and product performance is critical in winning their trust. Huggies is the market leader with 45.8% value share (40% volume share) of the market and we are constantly working to improve the performance of our nappies – to offer benefits that will keep baby drier and more comfortable. Kiwi mums think that Huggies are the best performing disposable nappy in the market* and have a range of products that help mums to provide the best care for her baby.” Brand manager Selina Roberts says: The childcare category is an extension of the nappy category and is worth $12.2m, with bedwetting pants
representing 47% of the category, followed by training pants at 46%, and swim pants at 7% (Aztec MAT to 18/11/2012). The exciting fact about the segment is that there is always an influx of new shoppers coming into the segment.Take for example toilet training pants; children take approximately three to four months to toilet train, so there are always new opportunities to bring new parents into the segment. There are also seasonal opportunities; most parents start thinking about toilet training in the warmer months of the year and swimpants is a segment that has a seasonal sales peak from October to January period, with over 50% of sales occurring in these four months. Brand manager Codey Goodall says: “The baby wipes category is worth $26.2m and has remained relatively flat in 2012 at 0.1% value growth. Strong growth of 12.1% (value) in the premium segment, of which Huggies represents the majority, has been offset by the decline in the mid-market and economy brands. The bulk of the wipes in the New Zealand market are made from spun lace, with a 34.3% share (value). Huggies Baby Wipes is a differentiated product being the only coform based wipe, which is thicker and very gentle on babies’ delicate skin.” Source: Aztec Data TKA MAT to 16/12/12. * Colmar Brunton, Brand Health Tracking, July 2012
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Bio·Oil® is a skincare oil that helps improve the appearance of scars, stretch marks and uneven skin tone. It contains natural oils, vitamins and the breakthrough ingredient PurCellin Oil™. Bio-Oil 60ml is New Zealand’s No.1 selling skincare item*. bio-oil.com *Bio-Oil 60ml Aztec Data MAT $ Sales 12/08/12 National Combined (Grocery & Pharmacy)
Easter break What opportunities does Easter bring for your store? ShopAbility shows you how to make the most out of the ‘going away’ occasion.
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he Easter break isn’t just about kids, bunnies and chocolate. It offers a chance to head away for a few days of fun and relaxation with friends and family, with or without kids. In New Zealand it’s often the last holiday while the good weather lasts. As a retailer and/or manufacturer, how do you best leverage Easter and maximise the ‘going away’ opportunity? Here are a few ideas for the convenience, grocery and retail liquor channels. There are three stages in the going away occasion: 1. Preparing for the trip 2.The journey (in transit to and from the destination) 3. Time at the destination itself. Breaking down ‘going away’ occasions in this way throws up a number of different retail and channel opportunities outside of the typical focus on Easter confectionery.
Trip preparation Shoppers in preparation mode, particularly if camping or off to a bach, need to stock up on supplies for the weekend. Solution based offers that deliver a quick fix for meals and snacks can make the weekend away just that much easier. Some ideas include easy bundle options for ‘share snacking’ at the destination (chips, dips, cheese and crackers etc), ‘on the road’ snacking (share packs of lollies, healthy options – fruit, muesli bars etc, treats – mini bags of chips etc), plus of course single serve beverages for the journey and share packs of cans or larger formats for the weekend itself. Smaller pack sizes of breakfast foods could also work as a more convenient ‘take it with you 40
FMCG FEBRUARY 2013
and eat it there’ option, rather than ‘repack and have to bring home again’ larger pack sizes. Cooler bags, and picnic ware could be added and/ or bundled with products for a ‘grab and go’ weekend away. And then there are other retail opportunities such as frozen dinners (if the bach has an oven), linen (BYO towels and sheets), and liquor (‘going away’ friendly formats such as wine casks and beer, RTD and cider cans, rather than glass bottles). What’s your opportunity, if you’re a supermarket, to put together a ‘weekend away made easy for $100’ type bundle including snack, meal and liquor components?
In transit In transit means impulse opportunity. Ideal for convenience stores in particular, this is your chance to tap into shoppers’ emotional needs for that mid-trip purchase – either because they are stopping for fuel, or because they need a break. Whatever it may be – capitalise on it. Because it’s emotionally based and impulsive, focus on factors other than price. Emotive imagery is a powerful tool in triggering the emotions via needs. Not just hunger and thirst, but ‘need states’, like ‘tired’, ‘over the kids fighting’ etc. Use this to communicate directly. For instance, easy snack solution bundles to ‘tide
appetites over until dinner’ are perfect and could include anything from sandwiches and pies to salty snacks, cakes, muesli bars, confectionery and hot or cold beverages. Car friendly games are great to quell the kids’ ‘are we there yet’ rantings from the back seat, so how about adding a few around the counter with messaging to suit? They could even be added as a gift with purchase (for transactions over $20, for example).
At holiday destination At the destination it’s all about last minute supplies for the weekend – both at the bach/camp site and for day trips, or evening outings. Holiday destinations often attract visitors from the whole social spectrum, so think about the difference in types of shoppers visiting your store. For example, you might offer three tiers of “Here for the Weekend?” packs: A high end ‘glamping’ bundle of bubbles and oysters; a mainstream wine/ beer offer bundled with kebabs; and a ‘camping on a budget’ cask and sausages pack could entice a customer who may not be the norm for your store. Any offers that target occasional eating (easy breakfasts, picnics, lunches, snacks, dinners) and supplies for the weekend, varied for shopper types and budget, can boost sales. What ideas have you got to boost your Easter trade?
Annette Piercy Group account director M: 027 300 8010, Freecall: 0800 300 8010 E: annette@shop-ability.com W: www.shop-ability.com
What’s Hot for Easter?
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ew chocolate flavours and innovative Easter products were spotted at the 43rd International Sweets and Biscuits Fair (ISM), which took place from 27th to 30th January in Cologne, Germany. More than 1400 exhibitors from 67 countries presented their wares at the world’s leading fair for confectionery and snack items, with a comprehensive product range including sugar confectionery, fine baked goods, snack products, ice cream and raw pastes. Low-fat, low-sugar and lactosefree offerings were among the new developments in the chocolate sector, including Easter Bunny figures. There seems to be demand for confectionery items for consumers with special requirements such as gluten-free, vegan and vegetarian. Sustainability, fair trade and proofof-origin were also key themes. There were chocolates with bee pollen, pomegranate extract and acerola; nougat caramel with a delicate salty hint; chocolate truffles
flavoured with sea salt; jelly beans wrapped in rich Belgian chocolate; marshmallow sticks covered with milk chocolate and liquorice toffees coated with chocolate. New from Central America was a deliciously exotic concoction made of fresh coconut and coconut milk, sweetened with raw sugar. Among the more unusual new confectionery products were Cola Crackle Wafers with popping candy, Almond dragées with stevia and a unique ‘Music Box’ concept by Swiss company Kägi Söhne AG. Its presentation tin filled with chocolate wafers plays a yodel melody whenever it is opened. Only end-products intended for retail sale were on show; ISM was open exclusively to trade visitors from the wholesale and retail trades.
Lindt Easter chocolates
Davis, senior business manager Brandlines. “Lindt Easter is adding value and profitability to the category, as consumers continue to trade up to premium chocolate. The Lindt Gold Bunny is fast becoming an iconic product in NZ at Easter. “This year we will have Gold Bunnies available in 10g counter units right through to the handmade 1kg Gold Bunny. The 100g Gold Bunny will be available in milk, dark and white, and still remains as the core product for Lindt at Easter along with the 200g Gold Bunny. “Lindt also has some fabulous ‘new’ innovative products available for Easter 2013, such as the ‘Barnyard’ 50g range including bunnies, chickens and lambs. These will drive further growth within the kids Easter sub-category, with highly appealing packaging available in exquisitely smooth melting milk chocolate,” says Davis.
Closer to home, Lindt Chocolate continues to grow ahead of the market in New Zealand, says Ken
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g rocer y b us ine ss Fine Food NZ wins coveted award The 2012 EEAA Awards for Excellence were held in Melbourne in December, recognising outstanding merit and leadership within the industry and providing an opportunity for members to showcase their finest work and people. The Best New Zealand Show was awarded to Fine Food New Zealand, which is organised by North Port Events. Judges’ comments were, “Fine Food New Zealand offered a consistently high level of product development and a strong understanding of the market needs. The event fulfilled its objectives of attracting increased numbers of switched-on exhibitors and high quality ready-to-buy visitors.” Dona White, CEO of North Port Events says, “We’re thrilled with this win, especially as we have only held this show twice and it’s just the kind of news you want to hear at the end of the year! We’re confident that we have achieved great things not just with the Show, but also for the food, hospitality and
catering sectors within New Zealand. This Award puts the icing on the proverbial cake and we relish the arrival of the next Show in 2014!” l
Steve Duck (North Port Events) and Minnie Constan (Diversified Exhibitions).
Wellington primed for Pride In Print Awards Pride In Print is set to put the “bling” back into Wellywood when its Award night is held again on Friday May 3. Traditionally, Award night is both the showpiece where the cream of New Zealand’s print expertise is rewarded, and a fun night where printers, suppliers and customers let their hair down in celebration. This year, the event will be held at the TSB Arena, nestled on the harbour, just a stone’s throw from the CBD. The flavour of the night is described by Mark Stocker, managing director Kurz Australia, a major international supplier of hot stamping technology and a new sponsor for Pride In Print in 2013: “The whole awards night is a good reflection for not only the printers but also the suppliers to stand up and pat themselves on the back for the thankless work they do. Suppliers deliver high-quality materials and ongoing support to enable their customers to produce work to a standard that can compete with their peers in business, and be rewarded for their skills. The night also is a great reflection of supplier-printer relationships and teamwork, working together to reach a common goal, as well as a great opportunity to reflect on the pressures of the printing industry.” Awards manager Sue Archibald said the evening is set to be a huge success. “The venue is walking distance from major hotels and is also only a short distance from Courtenay Place, a traditional venue for after-function celebrations to continue. Check out the website prideinprintawards.co.nz for the deals we have been able to secure at the Ibis Hotel for $119 per night.”
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Archibald says the print industry needs to go hard to make the Awards a glowing tribute to the quality that New Zealand print can produce. “Remember – success in Pride In Print opens doors for more work with current and future clients. Winners find the competition provides an invaluable benchmarking opportunity, showing their quality to be higher than the competition and providing downstream benefits in the marketplace. So now is the time to get entries in and to share in the rewards.” Final close off for late entries is February 28. Entries are welcome from any person or company associated with the production or purchase of print. Entries must have been printed in New Zealand between January 1 and December 31 and can be from any printing process. l
New Zealanders embrace social media sites Recent research from Nielsen, a leading global provider of information and insights, show more than 2.8 million New Zealanders (aged 2+) visited social media sites in the month of October. Apparently, New Zealanders enjoy interacting with peers, other consumers and brands on social media sites where they spent an average of nearly eight hours each on social media during the month, the equivalent of a full working day. Facebook is the top ranking social media website in New Zealand with a unique audience of over 2.7 million people who visited the site. With 80 percent of the online NZ population visiting the Facebook site, New Zealand has the highest proportion of the online population who visit the social networking site in comparison to Australia (74%), the US (69%) and the UK (68%). Blogger is the next highest ranked site with a monthly unique audience of 803,000, while Twitter, Tumblr and WordPress had a unique audience of 431,000, 428,000 and 394,000 respectively. The remaining top 10 social media sites include Google+ (365,000),
LinkedIn (309,000), Wikia (218,000), Squidoo (192,000) and Pinterest (187,000). The use of social media platforms is not mutually exclusive and of the 2.7 million Facebook users, 29 percent also used Blogger, 15 percent used Twitter as well as Tumblr, Google+ (13%) and LinkedIn (11%). Most New Zealanders are accessing social media sites via their computer (96%) and over a quarter are using their Smartphone (27%). Tablets are used to access the sites by seven percent of social media users. Using social media to keep in contact with family and friends are the top reasons for participation. In addition, 47 percent of the online population engage social media at least once per month to learn more about brands, products and services and 42 percent to hear about others’ positive or negative consumer experiences. l
Celebrating training success Every year several thousand skilled New Zealanders graduate from industry training without receiving the recognition they deserve for their achievements. Gaining a Level 4 or higher certificate is the equivalent of a university degree – with both taking four years of dedication and focus to complete. That’s why, as a celebration of this hard work, industry training organisation Competenz has published and distributed a ‘Roll of Honour’ handbook. It acknowledges graduates who received their certificates in Level 4 or higher qualifications in 2012 within the baking and food and beverage manufacturing sectors that Competenz works with. And employers should be equally celebrated for their investment in lifting transferable skill levels throughout
New Zealand. “Our graduates should be extremely proud. The skills they have gained will stand them in good stead for their futures,” says John Blakey, CEO Competenz. “With current and looming skill shortages, there has never been a more crucial time to be skilled in New Zealand, and their career prospects should look bright.” Competenz annual alumni magazine – The Guild – will also be published alongside the handbook. The magazine features inspirational profiles from some of the 2012 graduates. “Learning is lifelong and we look forward to following the progress of our graduates,” says John Blakey. “Hopefully we see them enrolling in even higher level training in the near future – their skills are an asset for New Zealand’s economy.” l
Skilled graduates securing `V\Y ÄYT»Z M\[\YL
Congratulations to our Graduates of 2012 0UK\Z[Y` [YHPUPUN MVY [OL )HRPUN HUK -VVK )L]LYHNL ZLJ[VY february 2013 FMCG
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g rocer y b us ine ss Step up to the Grocery Charity Ball! The 2013 Grocery Charity Ball will be another gala event at the Langham Hotel in Auckland and the organisers are expecting well over 650 attendees. The Ball takes place on Saturday 31st August 2013. Started in 2004, The Grocery Charity Ball Trust has been established to run the premier event on the grocery industry social calendar, and direct the profits to charitable trusts in New Zealand. The annual event is held with the support of both Foodstuffs and Progressive, as well as the New Zealand Food & Grocery Council. The beneficiary of this year’s Grocery Charity Ball is the Monty Betham Steps for Life Foundation. Steps for Life works with overweight high school age youth and their families, providing assistance and support along with the knowledge and tools required to make sustainable changes that gives youth and
The Grocery Charity Ball Trustees.
their families the opportunity to live a healthy lifestyle, eliminating the many risks associated with obesity. You can confirm your booking for the Grocery Charity Ball with Jackie Coyne or Alex Mitchell at S2N Events: email alex@s2n.co.nz or ph 027 275 7222, or email jackie@s2n.co.nz or ph 027 494 6211. For more information go to grocerycharityball.org. l
NZ/US export agreement has huge potential An agreement, between the New Zealand Government and the US Food and Drug Administration (FDA), which recognises each other’s food safety systems, has huge implications for exporters of manufactured foods, says FGC CEO Katherine Rich. The Ministry for Primary Industries (MPI) and the FDA have signed the Food Safety Systems Recognition Arrangement, which recognises each other’s food safety systems as providing a comparable degree of food safety assurance. It covers all foods and animal feeds regulated by the FDA, which equates to $1.5 billion of New Zealand’s current exports of primary products. New Zealand is the first country to sign such an agreement with the FDA. “This agreement has the potential to be huge for New Zealand’s manufactured food exports,” Rich says. “It means New Zealand exporters don’t have to meet a different set of standards before they can be accepted for import into the US.
“Instead of our exports having to meet US requirements to deliver ‘safe food’, they can meet New Zealand standards because the outcome of ‘safe food’ is the same as the US outcome. “Basically, the FDA has recognised New Zealand’s food safety system as comparable to its own, and that is huge. “It will lessen the potential regulatory burden for foods traded between the countries by removing unnecessary duplication of activities, and that means big cost savings for our manufacturers. And it is likely to open the door for more of our manufactured food exports because US importers now don’t have to think twice when considering buying our goods. “This agreement is part of an overall strategy for strengthening the global food safety net through closer collaboration with regulators around the world, and anything that does that can be only good news for New Zealand’s food-exports-led economy. l
years
Custom Design & Build
Hire Furniture
Signage & Graphics
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FMCG february 2013
Event Management
Exhibitions make dollars and sense Dona White shares five reasons why exhibitions should be a no-brainer.
Y
ou can convert sceptics into true believers, and build lifelong customer loyalty, with the direct marketing medium that’s thriving here and around the world. I’m going to come clean right away and admit that I’m probably the world’s number one cheerleader for exhibitions. I’ve been staging them for more than 20 years and in that time helped hundreds of businesses grow using time-honoured techniques that anyone can tap into for a minimal investment. Over the coming months I’m going to be sharing what I’ve learned about exhibitions and hopefully convince many FMCG readers to commit more of their marketing dollars to this amazingly effective face-to-face selling tool. To kick it all off, here are my top five reasons why exhibitions make dollars and sense: 1. You can sell your products better than anyone. People may be able to find your products online or in a shop, but you and your staff are best qualified to point out why they should buy your products rather than a competitor’s. Even high quality sales assistants and promotions staff can’t match the fervour and insight that you and your team can bring to bear. 2. Exhibition visitors are all prequalified. People go to exhibitions eager to see new products and buy them. At consumer exhibitions people are
actually paying to hear your sales pitch – where else does that happen? Other direct marketing mediums, such as supermarket sampling, interrupt some other activity to establish a sales opportunity. At an exhibition sampling your product is primarily what visitors have come to see, so you’re already one step ahead. 3. Exhibiting makes the most of your marketing budget. People follow their passions when it comes to exhibitions, which makes exhibitions highly targeted sales environments with low levels of tyre kickers. You get more bang for your marketing bucks and can tightly focus your efforts on capturing the interest of your most lucrative market segments. 4. Face-to-face selling in three dimensions. Nothing beats pitching your product directly to a customer while they hold it in their hands. They get to experience what you’re selling first-hand and you get to close the deal on the spot. Unlike other forms of sampling, exhibition visitors are more disposed to take their time, gain a deeper understanding of your products, and commit to purchase. 5. Reach out and touch your audience. Exhibitions let you meet thousands of customers, understand who they are, and gather their feedback.You can grab their details and build a database. You can give them free gifts and special deals. You can shower them with coupons for
use after the show. An exhibition is the perfect place to lay the foundations for lifelong customer loyalty. If you’ve never made exhibitions part of your marketing mix, you may be missing out on a proven way to stretch your budget further, expand your customer base, improve your products and services, make more sales, and ultimately grow your business. My advice is: Give exhibitions a go.
10 top tips for exhibition newbies If you’ve never exhibited before, here’s the skinny on how to do it like a pro. 1. Choose the exhibition that attracts the biggest numbers of your target customers. 2. Set specific, measurable objectives and ironclad budgets. 3. Promote your participation before the show via every medium at your disposal. 4. Select and train your staff carefully – they’re your brand ambassadors. 5. Employ an experienced designer to ensure your stand ‘stands out’. 6. Keep your team on their toes and fired up throughout the show. 7. Follow up ‘hot’ sales leads straight after the show before they have a chance to ‘cool off’. 8. Contact ‘warm’ leads at the same time and keep in touch until they’re ready to buy. 9. Do a mini advertising campaign after the show to stay top-of-mind with customers. 10. Review your exhibition performance and use lessons learned to improve for next time.
Dona White is CEO of North Port Events and organiser of The Food Show, Baby Show, Fine Food New Zealand, and Healthy Living Show. North Port Events is the NZ agent for the Fine Food exhibitions in Australia and India and also, the National Restaurant Association Show and International Wine, Spirits & Beer Event in Chicago, USA. Go to northportevents.co.nz for more info. february 2013 FMCG
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talking business Mediaweb is New Zealand’s leading B2B publisher with titles at the forefront of the business, food, media and fmcg sectors. The combined power and reach of our titles give us a market coverage second to none and offer both readers and advertising partners unparalleled access to the latest trends and targeted audiences.
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recr ui tm en t
Building relationships Get out from behind the computer screen when job seeking, says Hamish Marr. Hamish Marr,
Every year many contemplate a shift during their summer break, making February and March busy months for our industry. However, those who haven’t been job searching for the past few years may notice a change in the job search process and how quickly it has become complex and fragmented. Here is my advice on how to handle the current job search landscape. Over the past five years, we have seen the rise of social media with LinkedIn, Facebook and even Twitter playing a part in people’s search for the next job. We have seen the rise of the internal recruitment teams in some of the larger FMCG businesses and of course the online job boards like Seek and Trade Me. All of this makes for a fragmented and complicated job search as there is no real central point for job advertising anymore. Now while these options all have their places, the best advice I can give to those looking to move, is to not lose sight of the importance of good old school forged one-on-one relationships. My experience has shown me that the majority of job moves, particularly at the more senior levels, have come as a result of relationships that have been formed out of meeting people for other roles that they were not successful in getting. This has subsequently led to a discussion about a better suited or better timed role later on. Now I’m not suggesting anyone deletes their LinkedIn account, or not apply for jobs through an internal recruitment team or Seek; in fact I’ve written many articles in support of these. I’m suggesting
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senior consultant FMCG – that people not lose sight of the fact that Sales & Marketing the job boards, the social media sites, the OCG Consulting Ltd internal recruitment teams and the agency based recruiters out there, presenting the ‘immediate opportunity’, often are representing the first step in a process of getting a number of great opportunities available to you. Among these people are a small group of specialists who can be very instrumental in your career and the many roles available to you, either now or in the years ahead. A specialist will spend 365 days per year accessing talent and meeting heads of companies to find out their needs. A mile deep, inch wide view of the market. There is no way the vast majority of companies’ internal recruitment teams or mass social media tools can compete with this level of focus. Most internal recruitment teams do little other than engage the active job seekers, or at best search the wider active LinkedIn users. Data suggests that this is only five to seven percent of the total talent pool. Instead, they should be building relationships with the entire wider talent pool in the available industry. This approach takes shoe leather, time and coffee. Anybody can send an email, or hit the “Connect” button on LinkedIn, but it takes courage to pick up the phone, set up a meeting and build a relationship where people will confide in you and hire you. The payoff is well worth your efforts, in this next role, or in the ones down the track.
NZ’s only dedicated FMCG Sales and Marketing recruitment team.
We Understand
Talk to us today 09 377 7575 | www.ocg.co.nz
FEBRUARY 2013 FMCG
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T Made in NZ Buy New Zealand Made is celebrating its 25th birthday. To mark the occasion, FMCG talks to some of the people behind the success of our excellent local products.
he happy hens at Wairarapa Eggs spend their days exploring, foraging and dust bathing at their home on Upper Plain Rd on the outskirts of Masterton. Wairarapa Eggs is the oldest and largest certified free range egg producer in the region and the owner and operator, Chris Martin, is one of New Zealand’s youngest egg farmers. Last year has been a bumper year for the company as free range products continue to grow in popularity locally and nationally. Wairarapa Eggs was delighted to be recognised with the ‘Good Egg Award 2011’ by the SPCA and Compassion in World Farming, to acknowledge businesses that support animal welfare. At only 26 years of age Martin successfully juggles 15,000 healthy hens, a team of eight staff and a family (including three young children). He still tries to deliver most of the eggs to his customers personally to keep his finger on the pulse. Martin and his wife Alexandra officially purchased the family business from Alexandra’s father and a new injection of energy and marketing initiatives has seen the company’s profit and sales increase last year. Wairarapa Eggs certified free range eggs are now being sold in top restaurants, cafes, butcheries, delis and supermarkets in the Wairarapa and Wellington.
Chris Martin of Wairarapa Eggs.
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Martin’s priority is to ensure he has enough supply to service the locals that support him and also the charities he is so passionate about, including free eggs for ‘Bellyful’ – a charity that provides meals for families with newborn babies and families who are struggling with illness. Martin is also focusing on new initiatives this year that will encourage local schools to promote the egg industry and teach children how eggs are produced and what a good healthy meal they make (for more information email agoodegg@ waieggs.co.nz).
Kiwi icon with a gourmet twist The phenomenal growth of Kiwi gourmet pie company I Love Pies saw it take out the Best Emerging Business at the 2012 Westpac Auckland Central Business Awards in November last year. Since its launch only four years ago, amid a dim economic outlook, co-founders and friends Maree Glading and Jessie Stanley have seen demand for their popular pies shoot up exponentially. The company is a giant leap from where they started out; selling a handful of pies at the Clevedon Farmers Market, testing formulations, flavours and fine-tuning their product. They now make thousands
made i n N Z
I Love Pies co-founders Maree Glading and Jessie Stanley.
of pies a week; hundreds of thousands each year. This year they estimate further growth and have plans to grow the business five fold over the next few years. The piping hot reception that the pies received at Clevedon led them to be picked up by several gourmet stockists such as Nosh, Farro Fresh and Moore Wilson in 2009. Since then, the number of outlets stocking the pies has grown from three to more than 150, including major supermarket chain Foodstuffs. Starting with only four products they now supply almost 20 and staff numbers have more than doubled. Both avid cooks, Glading and Stanley shared a background in product innovation, in marketing and food technology respectively. Returning from years abroad to raise their families and escape the corporate grind, the pair started I
“The recent award was great recognition of what I Love Pies has achieved creating a sustainable brand in a highly competitive and cluttered market” Maree Glading, co-founder I Love Pies Love Pies in the belief that there was a gap in the market for an innovative product that wasn’t full of “gristle and gloop”. Glading says, “The recent award was great recognition of what I Love Pies has achieved creating a sustainable brand in a highly competitive and cluttered market”. With pies something of an icon in our national diet, I Love Pies was founded on the belief that New Zealanders are hungry for great pies. Ingredients are sourced from
“growers and farmers who care about their food like we do”, including Angus Beef along with freerange chicken, bacon and eggs. “When we launched our first pies, we were confident we had created a product that would resonate with fellow pie lovers who appreciated a Kiwi classic made from fresh, quality ingredients,” says Stanley. “Despite our sizeable growth of 80 percent over the past year alone, we don’t cut any corners and each pie is still made by hand.”
Good Kiwis buy New Zealand Made Got an FMCG product that’s made in NZ? Why not shout about it?
y ed b ognis iwis c e R of K 87%
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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FEBRUARY 2013 FMCG
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“New Zealand is seen internationally as an environmentally focused, clean and green country. It is a trusted supplier of commodity products to the world’s markets.” Adam Smith, North Island sales manager, Pakworld Another point of difference is their pastry, made with sour cream and real butter as opposed to the margarine and other additives and preservatives used in mass-produced pies. They also add a signature pastry heart topping to each handmade pie. I Love Pies’ unique product format of larger, family-sized pies and brand positioning capitalises on the marketing opportunity the girls identified when they set up their company; successfully targeting a higher value category and new family eating occasion outside of the highly competitive individual pie serve.
A sustainable approach
Adam Smith, Pakworld’s North Island sales manager at the Pride in Print Awards.
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FMCG FEBRUARY 2013
Pakworld has manufactured folding cartons out of Christchurch for more than 30 years. During this time the business has continued to develop its customer base by offering quality products, innovation and AsureQuality good service.farm and livestock services. More recently Pakworld has focused on the sustainability and
NZ-made aspect of its business. For Pakworld these two business ideals complement each other. Adam Smith, North Island sales manager explains: “New Zealand is seen internationally as an environmentally focused, clean and green country. It is a trusted supplier of commodity products to the world’s markets. As an indirect supplier through our packaging, it is important that we illustrate to our customers and the rest of the world that we are from New Zealand and we are environmentally friendly.” Pakworld has undertaken FSC (forestry stewardship council) certification and is a member of the Buy NZ Made campaign. “There is no question that these two endorsements have added value and new opportunities to our business. A clear indication of this is that we now export packaging to Asia. With all the manufacturing resource available in Asia, our Asian customers see Pakworld as the best fit for them. We meet all of their requirements which include sustainability, value and quality. “Internationally consumers are re-evaluating how they spend family income so they can still feel good about their purchasing decisions. By being New Zealand made and environmentally responsible, Pakworld feels it’s assisting its customers and consumers with their purchasing decisions,” says Smith.
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New era for health claims A new standard is set to bring certain claims on our food packaging closer into alignment with comparable arrangements overseas.
N
ew Zealand has long set its sights on a new regime for the regulation of health claims on food packaging. In what has been a long, drawn out process of reviews conducted by Food Standards Australia New Zealand (FSANZ), it seems that the end is near with its final approval of Standard 1.2.7 relating to Nutrition, Health & Related Claims. This new standard is set to address the ambiguities and limitations presented by the current regulatory environment and bring New Zealand closer into alignment with comparable arrangements overseas. It is common industry practice to emphasise a food product’s nutritional qualities, which is often conveyed in the form of a health related claim. The current Food Standards Code is loosely worded in this respect so that it allows traders to promote positive or nutritious elements of the food products with disregard to the overall nutritional quality of the product. This means that one favourable quality, such as being “98% fat free”, is allowed to be promoted even if a product may be of limited nutritional benefit and likely to be considered unhealthy because of its high sugar and/or sodium content. This has the potential to skew consumers’ overall impression of the nutritional value of the product. Both in New Zealand and overseas there has been a low tolerance for misleading health claims. For 52
FMCG FEBRUARY 2013
example, earlier on in 2012, Ferrero, the producer of the hazelnut and chocolate spread Nutella, lost a Consumer Class Action in the US regarding advertising claims about the product’s ingredients, which implied Nutella was a healthy food and part of a balanced breakfast. Similarly in the UK, the Advertising Standards Authority determined that the Nutella advertisements should not be repeated in their current form as they misleadingly implied that Nutella had more nutritional benefits than was actually the case. At present, the existing transitional Health Claims Standard (Standard 1.1A.2S) prohibits health claims except one relating to the folate intake in women before and during pregnancy. Under the revised standard there are three different levels of health claim which “states, suggests or implies that a food or property of food has, or may have, a health effect”, that being nutrition content claims, general level health claims and high level health claims. If a trader places emphasis on a single property of the food, this will be considered a nutrition content claim and the food must meet the minimum criteria levels set out in the code. For example, a food that is claimed as a “good source of protein” must have at least 10g of protein per serving. By comparison, general level health claims and high level health claims refer to a relationship between food and health,
featu re rather than a statement of content. A general health claim describes a relationship between the consumption of food and a general health benefit, for example “Vitamin C contributes to iron absorption from food”. The next level captures the relationship between the consumption of a food and benefits to health with reference to a serious disease or condition and will need to be directed at a relevant audience. For example, in the case of osteoporosis, the high level health claim “Diets high in calcium may reduce risk of osteoporosis” must state that this is relevant to those 65 years and over. For general level and high level health claims, the product which it relates to must first pass a base test on the overall properties of each aspect of the food and will only be permitted on foods that meet the nutrient profiling scoring criterion (NPSC). NPSC will measure the nutritional merit, taking into account such factors as salt, sugar and saturated fat content and balancing these against criteria such as fibre, protein, fruit and vegetable content. It is hoped that the stipulated baseline requirements will mean that one beneficial aspect of the product will not be able to skew its overall properties. FSANZ has developed a Health Claims Nutrient Profiling Scoring Criterion Calculator to help
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businesses calculate whether a food product qualifies for a health claim (visit foodstandards.govt.nz).
A compulsory consideration In addition, while the new standard does not prescribe the exact wording of claims, FSANZ has taken a co-regulatory approach to the types of health claims that may be used. General level health claims may be taken from a list of pre-approved food health relationships or through industry self-substantiation, whereas the relationships underpinning high level health claims are limited to those provided in the standard. It is expected that the new standard will become law in early 2013 if there are no objections or amendments. Food businesses will then have a transition period of three years to meet the requirements of the new standard. Compliance is mandatory and enforceable by the Ministry for Primary Industries; therefore it will be a compulsory consideration for food businesses and marketers alike. The implications of this are not hard to envisage in the New Zealand context. For example, in July 2012 a complaint to the Advertising Standards Authority led to Fonterra removing five claims about the nutritional benefits of dairy products, stating that dairy is an “essential part
of a balanced diet” and “we all need it”. The ASA referred to the Ministry of Health’s nutrition guidelines, which said all essential nutrients could be obtained from a wellplanned diet involving no dairy products. Therefore, the statements were factually untrue. Under the new standard, such claims if not capable of substantiation will be prevented from featuring on labels and advertising. In this way, the standard is expected to expand the range of permitted health claims and encourage industry to innovate, giving consumers a wider range of healthy food choices. The perhaps inevitable consequence will be the cost of allocating resources to substantiating claims, and producing new compliant labels and marketing campaigns where these are not considered compliant. In any event, the revised standard is generally considered a welcomed improvement on the regulation of health claims in New Zealand. 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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Billion dollar sales for Magnum Unilever’s Magnum ice-cream is “one of the greatestever success stories in the consumer goods market”. Unilever made the claim as it revealed that sales of Magnum broke the ¤1 billion ($1.26bn) barrier last year, taking the number of its blockbuster brands to 14 and pushing its total sales over the ¤50bn mark for the first time. Unilever said that the success of Magnum, which it dubs an “impulse ice-cream”, and its Sunsilk hair care range, which has also become a billion-euro brand, helped to push its pre-tax profits up by seven percent to ¤6.7bn last year. The group reported growth in its food, personal care, refreshments and homecare categories, with sales rising 10.5% to ¤51.3bn, moving it further towards its target of ¤80bn of sales a year. Unilever chief executive Paul Polman said that the group was 30% bigger than it had been in 2009, despite high energy and commodity costs and a “challenging and intense” market. In a fresh sign of the growing importance of emerging markets, more than 55% of Unilever’s turnover last year came from developing countries, where underlying
sales growth rose 11.4%. This compares with a stagnant European market, which reported a flat 0.8% underlying sales growth last year. Unilever, which also sells Lipton tea and Flora margarine, said that it was expanding some of its best-known brands in Indonesia, Brazil and China and other fastgrowing countries to offset slowing growth in other regions. l
Novel e-cigarettes hit stores in Australia and US High-tech cigarette packets with elaborate artwork are now on display in Australian stores, but they are for batterypowered cigarettes and not your regular smokes. Entrepreneurs are taking advantage of the Government’s plain packaging laws – which have dressed up traditional packets in drab brown – to sell boutique packets of electronic cigarettes in stores. “It’s been of massive benefit to us,” said company owner of Social-Lites e-smokes, Lee O’Hare, whose product is sold in more than 50 tobacconists, convenience stores and chemists on the Gold Coast. E-cigarettes can be prominently displayed on counters despite plain packaging laws because “they are not governed by tobacco laws,” O’Hare said. “They do not contain tobacco.” The novel e-cigarette packs light up when opened and feature an intricately drawn eagle on the front. The
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cigarettes can produce several flavoured vapours but they are not allowed to be sold in Australia if they contain nicotine. However, nicotine cartridges can be easily purchased on the internet. Meanwhile, US company blu has developed ‘social networking’ e-cigarette packets that vibrate and flash when people are near other users and retail outlets that sell the products. E-cigarettes have not been tested by the Therapeutic Goods Administration and medical authorities have issued warnings over the products. The Department of Health commissioned an impact statement into regulation of e-cigarettes last year. O’Hare said the Government would eventually have to formulate laws around e-cigarettes as the current set up was confusing. “One day they’re going to have to deal with it,” he said. l
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55
Focus on the customer! Trina Snow, executive director, NARGON.
Poor service costs money, says Trina Snow.
When economic times are tough, as they most certainly are, consumers are much more careful with their hard-earned spending money. Stores really have to battle to ensure their customer numbers and sales figures stay up or, preferably, even increase. Recent research from Britain indicates some retailers are unknowingly driving customers away from their stores, not because of high prices or tight household budgets, but solely because of poor service. Customer intelligence company Market Force Information polled more than 5000 shoppers in the UK. The headline finding was that nine out of ten (90%) shoppers say they will leave a store with no purchase if they are not given the service they expect. The level of service expected varies by the type of retailer but that number is extraordinarily high. Four out of ten (41%) of the shoppers polled said the biggest frustration was a lack of interest from in-store staff and 59% said they wanted more staff to recommend products as it makes the shopping experience more personal. When they ask about a product’s location in the store, eight of ten (80%) shoppers in the survey indicated they wanted to be taken to the product rather than just receive directions. Put simply, personal attention and recommendations from staff can make a huge difference. Tim Ogle, CEO at Market Force Europe, said “Good customer service doesn’t have to be expensive. Small, inexpensive changes can have an oversize impact on whether someone buys in your shop and how much they spend. It’s these little gems of insight that can turn a question into a sale. These findings should be a wakeup call to retailers looking for cost effective ways to grow their business.” NARGON emphatically agrees that customer service is critical in the retail grocery industry. The research indicated that retailers – including
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FMCG FEBRUARY 2013
supermarkets and grocery stores – still had a long way to go. They were ranked behind the hotel, hospitality and even banking industries. Banks in Britain have had a very poor reputation lately so this result should be of concern. There is some better news: despite all the talk about shopping online nearly eight in ten shoppers (80%) still actually prefer to shop in-store because of the service they have come to expect. While online shopping, social media and technology will have an impact on our industry, there will always be a very strong role for high quality personal interactions and customer service. The bottom line is that customer service is still mission critical. The report concluded that the interaction of promotions and service can be a healthy one for the retailer, or a deadly one. Half of shoppers (51%) confirmed that promotions drive them into stores. However, the interaction they then experience with staff determines whether customers actually buy. Market Force International noted that retailers that spend their precious marketing budgets to drive consumers to their stores but then failed to help them buy were literally losing out twice – once for the missed sale and once for the wasted marketing spend. Not many stores can afford to do that, particularly in this economic climate. When asked what would improve their shopping experience, shoppers indicated strong support for technology which makes payment quicker. Six out of 10 (63%) said they like self-service checkouts and 49% like contactless payment options. Overall, British shops make more use of self-service and contactless payments. One interesting revelation was that 37% of shoppers feel they should pay less for items when purchasing through self-service checkouts! This report is a timely reminder that the retail grocery is built on personal interactions and customer service. We need to ensure that we never lose sight of this even as we look to take advantage of new technologies. It is the season for New Year resolutions and a store-wide resolution to continually improve customer service could be the best one ever made. In these tough economic times, more than ever, we have to ensure our focus is always on the customer.
We’re flying 50 people back home from anywhere in the world to catch up with mates and have that long overdue Kiwi BBQ in the hot hot sun.
Get your mates name in the Summer Airlift draw when you buy a specially marked pack of Speight’s.
You must be 18 years or older to enter. Promotion runs from 01/02/2013 to 27/04/2013. Terms and Conditions apply – see specially marked packs and www.speights.co.nz for full details.
Speight’s big summer bBQ competition Every year, expats overseas dread the change in season. It’s because they know that back home in New Zealand the temperatures start to rise, the BBQ gets dusted off and the invites go out to friends to come over for a BBQ. However, a new competition launched by Speight’s is offering 50 people the chance to fly a family member or mate home from anywhere in the world to have a classic Kiwi barbeque at their house. There are also several other prizes up for grabs, with BBQs, chopping boards, retro beer fridges and folding picnic tables – all great additions to any
classic Kiwi pastime. Shoppers simply buy any specially marked pack of Speight’s Gold Medal Ale, Speight’s Summit or Speight’s Cider, fill in the entry form on the base of the pack, and then verify it at www.speights.co.nz to go in the draw to win*. Look out for the Speight’s BBQ Society – an online portal providing everything you need for a successful summer barby – more details are online at www.speights.co.nz. * All entrants must be 18 years and older to enter. Promotion starts 01.02.2013 and ends 27.04.2013.
l
Eurovintage appoints new national sales manager Eurovintage’s commitment to a channel-specific sales and distribution strategy will take a leap forward from early 2013 with the appointment of vastly experienced wine industry professional, Philip Bothwell, to the company’s management team. Philip joined Eurovintage as national sales manager (on-premise/retail) in January 2013. He is charged with leading the company’s sales effort within the on-premise, traditional liquor, duty free and fine wine retail channels. He will work alongside Niels Dijkstra, who will lead the company’s supermarket sales effort in the newly created role of national sales manager (grocery). “I’m absolutely thrilled to welcome Phil to the team,” comments chief executive Nick Hern. “He brings a rare combination of wine industry experience and commercial acumen to this new role.” Philip grew up in Ireland and after an early career in nuclear science his decision to pursue a future in the wine industry led him to New Zealand in 1999. He soon established himself as part of the winemaking team at Montana Wines before moving into the company’s sales and marketing division as ‘National Wine Ambassador’. During this period he was heavily involved in sales team mentoring and the company’s wine education programme. He went on to forge a successful 13-year career with Montana, latterly known as Pernod Ricard. Phil is a senior wine judge for the New Zealand International Wine Show and sits on the tasting panel for Winestate magazine. Phil has a Bachelor of Science (Hons) from the University of Ulster and a WSET Diploma in Wines and Spirits. l Philip Bothwell. february 2013 FMCG
59
Vintage 2013 kicks off for Jacob’s Creek Iconic Australian wine brand Jacob’s Creek has recently commenced vintage 2013 – with crushing of the season’s first fruit beginning at its Rowland Flat winery in the Barossa Valley. The first grapes, which will be harvested are Chardonnay from Mildura and Riverland, will be used for Jacob’s Creek’s range of sparkling wines. White table wines will follow in the coming weeks with vintage expected to conclude in approximately two months. Bernard Hickin, Jacob’s Creek’s chief winemaker commented; “So far, everything is indicating a high quality vintage in 2013. While it’s early days and the real hard work is still ahead of us, I believe we’ll see some great wines from this year across a number of varietals and regions. “Like many Australians, our winemakers have been paying keen attention to this summer’s high temperatures. Management of irrigation has been a particularly critical part of this year’s previntage preparation and we’ve been in constant communication with our viticulturists and growers to ensure we’re able to harvest the healthy, high quality fruit.
“While recent weather has presented challenges, a very dry spring and a dryer than average winter has resulted in very healthy fruit on the vines. I believe this will make wines from 2013 show tremendous concentration of flavours and silky textures.” Jacob’s Creek is one of Australia’s leading wine brands, first launched in 1976. Jacob’s Creek is made by Orlando Wines, which was founded by Johann Gramp after he planted his first vines on the banks of Jacob’s Creek in 1847 and thus began a tradition of winemaking over 160 years ago. l
Monteith’s new Brewer’s Series Iconic West Coast brewery, Monteith’s Brewing Company, is stamping its authority as a pioneering craft beer maker with the recent launch of the Monteith’s Brewer’s Series. Monteith’s head brewer Tony Mercer has been crafting some new innovative brews in the recently reopened Monteith’s Brewery in Greymouth, and as a result, he and his team have finally created the last of the first batch of Monteith’s Brewer’s Series, new alcoholic ginger beer. A labour of love for Tony and his team, the new Brewer’s
Series is a collection of four limited edition 500ml bottle brews within the craft beer segment of store shelves or chillers nationwide. The first four Monteith’s Brewer’s Series beers are: Monteith’s Brewer’s Series IPA (Indian Pale Ale), Monteith’s Brewer’s Series Unfiltered Apricot Wheat Beer, Monteith’s Brewer’s Series Barrel Aged Porter, and the Monteith’s Brewer’s Series Alcoholic Ginger Beer – which is now available in stores. l
Three new summer brews Boundary Road has gone all out and hit winning runs with its three new brews. Boundary Road Brewery, New Zealand’s fastest growing craft beer range, has released three new beers that dedicated beerists and backyard cricket enthusiasts will enjoy. These new cold drops go by the quirky names of Sticky Wicket Manuka Honey Lager, Brewer’s Cut Stolen Base American Double IPA, and Brewer’s Cut Wheat Reaper Weissbier. Sticky Wicket Manuka Honey Lager (5%) is a pale gold honeyed lager that has a lingering residual sweetness from the fermented Manuka honey and pilsner malt. It’s balanced with light kettle hop bitterness, and presents a wild honey note supported by grassy, citrus and floral aromas. Also new in the Brewer’s Cut 500ml single serve range is the Stolen
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Base American Double IPA (8%), and the Wheat Reaper Weissbier (5.2%). The Stolen Base is a rich full-bodied IPA made with a trio of coloured ale malts, and the Wheat Reaper is a spicy, tart brew with hints of vanilla, bubblegum and apple. “Due to the increasing demand for our craft beer range, we wanted to launch three new distinct, flavoursome and exciting beers – hopefully which will satisfy our thirsty drinkers for the summer season,” says Ben Shaw, Boundary Road Brewery marketing manager. All three new brews are available at supermarkets and bottle stores nationwide (Sticky Wicket Manuka Honey Lager RRP $16.99 for 330ml 6-packs and $27.99 for 12 packs; the Brewer’s Cut Stolen Base American Double IPA and Wheat Reaper Weissbier 500ml single serve bottles RRP $7.99). l
Accolades galore for Mills Reef Mills Reef Winery is one of New Zealand’s leading Gimblett Gravels producers, boasting over 500 medals and 16 trophies in national and international competitions, along with the prestigious New Zealand Winemaker of the Year Award. Mills Reef wines are produced from superior grapes grown in the Hawkes Bay region and hand crafted in Tauranga, employing sustainable practices throughout the winemaking process. Mills Reef Winery is a fully-accredited member of Sustainable Wine New Zealand. The winery was established in 1989 by the Preston family. Through commitment and dedication to excellence, the Mills Reef brand has established itself as one of New Zealand’s premium labels with a particular reputation for outstanding Bordeaux varietal reds and Syrah. Located on 20 acres of beautifully landscaped grounds in a semi-rural setting, just five minutes drive from Tauranga’s CBD, the winery has two underground barrel cellars, an aged wine cellar, spacious wine tasting areas and an award-winning 150-seat restaurant.
Recent accolades include Best In Class Pinot Gris for Mills Reef Pinot Gris 2012 at the Hawkes Bay Wine Awards 2012; Trophy Champion Merlot for Elspeth Merlot 2010 at the Five Nations Wine Challenge 2012; Trophy Champion Syrah for Elspeth Syrah 2010 at the Bragato Wine Awards 2012 as well as Trophy Champion Classical Red for Elspeth Cabernet Merlot 2010; and Trophy and Gold for Elspeth Syrah 2010 at the London International Wine Challenge June 2012. l
SIAL Wine World the next big thing The next big event in China’s wine industry is SIAL Wine World, held in conjunction with SIAL CHINA 2013, on May 7-9 at the Shanghai New International Expo Centre. With SIAL Wine World the SIAL Group is synergising their platform and channels, creating unprecedented business opportunities and uncorking new channels to access multiple tiers of regions in China. According to the World Luxury Association, the wine market in China is growing 20% annually, compared to one to two percent international growth. Currently the fifth largest wine consuming country, China is expected to take over the number one spot by 2020. At present, China’s wine consumption relies heavily on
festival gifts. According to China Business Herald Net statistics, consumption during the Mid-Autumn Festival, National Day Holidays, and Spring Festival accounts for over 60% of annual consumption. SIAL Wine World will occupy over 12,000 square metres of exhibition area, with more than 450 exhibitors from China, Spain, Italy, France, Greece, Australia, South Africa, Germany, Brazil, Turkey, USA, Korea, Japan and New Zealand, to name just a few of the countries present. It will be an impressive event with more than 12,000 visitors expected, including world-class sommeliers, buyers and professional visitors. For more information visit sialwineworld.com.. l
february 2013 FMCG
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Best of Ireland St Patrick’s Day is marked in March – and not just in Ireland but also all over New Zealand. BWS found some toothsome tipples to celebrate the occasion. The Irish are a nation that embraces loyalty, passion and good times and on March 17, 2013, people from around the world will unite again in celebration of St Patrick’s Day and Irish heritage. Guinness is inviting Kiwis to join in a weekendlong celebration and ‘share a Guinness smile’ on Friday, Saturday and Sunday around that date … because good festivities deserve to be prolonged. Did you know that the ‘Guinness smile’ was first discovered back in 1759 after Arthur Guinness created a brew that is now consumed in over 150 nations and when sipped leaves a rich, frothy smile above the mouth? For years people from around the world have celebrated St Patrick’s Day in their own special way, from gala parades in the US, Munich and Tokyo, to sharing a couple of Guinness in the local pub with friends. Whatever your plans for St Patrick’s weekend this year, make sure you track down some of Ireland’s beloved brews and share a Guinness smile all weekend long. Limited edition whiskey bottle David Smith, a traditional glass artist, has designed a special limited edition bottle for Jameson Irish Whiskey (pictured) ahead of St Patrick’s Day 2013. The bottle marks one of Ireland’s most celebrated days and was inspired by the intricate glass etching and ornate gilding synonymous with the décor of
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great Dublin pubs where Jameson has been enjoyed for generations. The uniqueness of this design and limited availability of the bottle means this is a must have for those who want to embrace their Irish spirit with friends on St Patrick’s Day. The special limited edition Jameson bottle designed by David Smith is available in New Zealand from leading liquor retailers from March 1, 2013 (RRP $63.99).
Jameson Irish Whiskey 1 Litre Jameson Irish Whiskey is the largest selling Irish whiskey in the world, established by John Jameson in 1780. Triple distilled and twice as smooth, Jameson is matured in bourbon and sherry casks for five to seven years. It’s a mellow, pot still whiskey with toasted wood and vanilla undertones. Smooth, sweet wood and nutty notes. RRP $63.99 Pernod Ricard New Zealand Phone: 0800 655 550 customer.service.nz@pernod-ricard.com www.perod-ricard-nz.com
Tullamore Dew Irish Whiskey The origins of Tullamore Dew whiskey can be traced back to 1829 when the distillery was founded in Tullamore, County Offaly in the heart of Ireland. The brand was named after the distillery’s General Manager, Daniel E Williams, whose initials (D.E.W) take pride of place on every bottle of Tullamore Dew. Tullamore Dew is a distinctively smooth, premium Irish whiskey, triple distilled using a unique blend of all three types of Irish whiskey – pot still, malt and grain whiskey – to produce a uniquely approachable yet complex character. It is then patiently aged in specially seasoned charred bourbon and sherry casks to fully develop its renowned smoothness. RRP $49.95 Federal Geo Limited Phone: 0800 846 824 federalgeo@xtra.co.nz www.federalgeo.co.nz
The Dubliner Irish Whiskey Liqueur The Dubliner, a distinctive Irish whiskey liqueur and a truly inspirational marriage of flavours. A blend of honeycomb, caramel and whiskey flavours marry together to create the product’s unique eclectic taste, essence of Dublin culture. Labeling and bottle design plays an important role here, combining images of grain with a strong, decisive description of the product, brought together by the immortal words of James Joyce: ‘When I Die, Dublin Will Be Written In My Heart’. RRP $44.95 Federal Geo Limited Phone: 0800 846 824 federalgeo@xtra.co.nz www.federalgeo.co.nz
O’Mara’s Irish Cream Blended with only the richest Irish cream and a uniquely gently fermented alcohol, O’Mara’s is infused with a semisweet chocolate flavour with subtle coconut notes. It offers a combination of sweet luxury and extraordinary smoothness. The quality and exceptional taste of O’Mara’s was also recognized as award winning at the San Francisco Spirits Competition. O’Mara’s is drinkable proof that superior care in the making can produce a luxurious and refined cream possessing a rich but soft finish. RRP $16.99 Federal Geo Limited Phone: 0800 846 824 federalgeo@xtra.co.nz www.federalgeo.co.nz february 2013 FMCG
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FMCG OCTOber 2012
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Jane Turn er was o ne of thre in the Co e lu tto promotio nsoft Family Sum cky winners n. The pri mer Kit ze includ tent, kay e ak, BBQ and sport d a Kathmandu s pack. in Auckland.
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Has your team been part of a charity event, promotional activity, a great harvest, or moved to new premises? Send us your favourite snapshot and go in the draw for a Danny’s Real Pita Bread gift hamper (worth $40)! Danny’s Real Pita Bread Company uses only 100% natural ingredients. For more information and recipe ideas visit pitabread.co.nz. Just email your high res image with a caption to: editor@fmcg.co.nz
DIARY 2013
APRIL
FEBRUARY
19-21 RETAIL MEAT NEW ZEALAND ANNUAL CONFERENCE
6-8
FRUIT LOGISTICA
Berlin, Germany
www.fruitlogistica.com
13-16
BIOFACH
Nuremberg, Germany
www.biofach.com
MAY
MARCH 5-10
CENTRAL OTAGO BUTCHERS’ STUDY TOUR
Queenstown, NZ
GOLDEN LAMB AWARDS (AKA THE GLAMMIES)
Wanaka, NZ
www.beeflambnz.co.nz PURE SOUTH BUTCHERY TRI-NATIONS
Wanaka, NZ
THE 2013 FMCG CONFERENCE
Stamford Plaza, Auckland, NZ
www.conferenz.co.nz/fmcg
24-26
PROWEIN
Düsseldorf, Germany
www.prowein.de
Wellington, NZ
www.prideinprintawards.co.nz
7-9
SIAL CHINA
www.sial.com
13
STEAK OF ORIGIN GRAND FINAL
Feilding, NZ
www.beeflambnz.co.nz
9
PRIDE IN PRINT AWARDS
8
19-20
3
Shanghai New International Expo Centre, China
www.rmnz.co.nz
www.rmnz.co.nz
New Plymouth, NZ
www.rmnz.co.nz
24-26
THE FOOD SHOW
Wellington, NZ
www.foodshow.co.nz
25-26
THE GLUTEN FREE FOOD & ALLERGY SHOW
ASB Showgrounds, Auckland, NZ
www.glutenallergy.co.nz
JUNE 16-20
VINEXPO
Bordeaux, France
www.vinexpo.com
Is your event or trade fair featured here? If you’d like to be included please email: editor@fmcg.co.nz
Bring out the Best
with Best Foods Mayonnaise Speak to your James Crisp Account Manager about Best Foods
www.bestfoods.co.nz
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