FMCG March 2013 by mediaweb

incorporating march 2013 Volume 19 No 2 $9.15

THE BUSINESS OF MANUFACTURING • LOGISTICS • SUPERMARKETING

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E L B 3 LA

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INTRODUCING NEW TIC TAC速 FRUIT ADVENTURE THE BIGGEST TIC TAC速 LAUNCH IN 2013

Editor’s note Industry news

Category checks

24 30 38 40

Breakfast cereals Chocolate & confectionery Paper products OTC medicines & supplements

contents

6 8

march 2013

Up Front

Regulars 12

Nargon

Alcohol legislation penalises retailers

GS1

FGC

Feature

Pick the Tick

Fresh and local

In season

Fish of the month

Dr Peter Stevens reflects on a big idea – 40 years on Katherine Rich considers new healthy eating initiatives

23 36

All about Bluff oysters

Subscription form Profile

FNZ Brands NZ Ltd becomes DKSH Services NZ Ltd

Health & Beauty Aisle

OTC medicines & supplements

What’s Hot

New products in store

Snap

Spotted out and about

Diary

Your guide to upcoming industry events

OUR COVER The new range of Rexona and Dove Clinical Protection deodorants.

contents

Grocery business 46 49

march 2013

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

Grocery business news Exhibitions

Dona White outlines five easy steps to success

Feature

Legal

Recruitment

Vicki Riggans of Nielsen on researching and testing new products Are we pushing the boundaries in advertising? Preparing for change

Convenience store and oil channel updates

55 56

Resource directory Nargon

Long fight looms over plain tobacco packaging

C-store news

Q&A

Peter Fredatovich Jnr. on liquor retail in New Zealand

59 60

BWS news Feature

Keith Stewart considers authenticity in beers

Top of the pops

Beers and ciders fly off the shelves

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e ditor ’s note Vol 19

No 2

march 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 (09-810 8166) franm@mediaweb.co.nz

Design

On-the-go convenience It’s been an exciting month, with the start of the Bluff oyster season, loads of new product launches and Countdown introducing a new Onecard Visa credit card. Meanwhile in Australia, MasterCard unveiled its bid to dominate the mobile payments market with a ‘virtual wallet’ allowing customers to keep personal payment details in their phone and avoid checkouts by scanning bar codes in-store to pay. The new MasterPass service is effectively an app, allowing customers a quick and easy ‘one click’ way to pay. It seems we will soon depend even more on our sophisticated phones, which will house our credit and debit cards, coupons and store loyalty programmes details virtually.

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, Auckland 1010 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.

Another major announcement was that the two Foodstuffs co-operatives in the North Island, which operate the three major grocery brands – New World, Pak’nSave and Four Square – are likely to be merged. The merger will help Foodstuffs to work smarter and keep prices down through the benefits of common systems, faster decision-making, reduced costs and other benefits. First established in 1922, Foodstuffs currently comprises of three independent co-operatives. Foodstuffs (NZ) acts as the Federation body for the three regional co-operatives, led by MD Steve Anderson. Foodstuffs South Island, which is not part of the proposed merger, was itself the product of a merger between Christchurch-based

and Otago-Southland based Foodstuffs’ cooperatives. In this issue, we take a close look at the Heart Foundation’s Tick programme; bring you the latest seasonal produce, fish and seafood updates and find out what’s new in the chocolate, paper products and breakfast cereals categories. Apparently, mueslis are increasingly popular, but for super busy people on-the-go convenience is where it’s at. Sanitarium’s national category manager, Mark Roper tells me that one third of New Zealanders are skipping breakfast at least once per week and products that can be consumed on the go are growing as ‘dashboard-dining’ increases. Find out how you can maximise your odds for new product success with the expert advice from Vicki Riggans of Nielsen, while Dona White of Northport Events outlines which exhibition is right for your business. Also in this issue, FGC chief executive Katherine Rich considers new ways of promoting healthy eating choices, while GS1 chief executive Dr Peter Stevens explains how the FMCG industry has changed the world. Literally! Last but not least, we have six bottles of wine up for grabs. Subscribe to FMCG or renew your subscription this month and be in the draw for this great prize – you will find a form and all the relevant information on page 23. Enjoy this issue,

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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news Dutch dominate NZ Cheese Awards Two New Zealand Dutch cheese companies have scooped all three major accolades in the 2013 NZ Champions of Cheese Awards for the second consecutive year. Meyer Vintage Gouda, produced by Meyer Gouda Cheese, has won the Crossroads Wines Champion of Champions Award for large cheesemakers. Very Old Edam, produced by Mahoe Farmhouse Cheese has won the Cuisine Champion Artisan Cheese Award for smaller producers with Jake Rosevear of Mahoe Farmhouse Cheese winning the Milk Test NZ Champion Cheesemaker Award. Fifty-nine cheese companies entered 413 cheeses in this year’s competition, with the winners announced at a gala dinner and awards ceremony at The Langham in Auckland. A total of 28 expert assessors made up the judging panel, led by one of Australasia’s most respected cheese judges, Russell Smith. Smith said he is particularly impressed with the increasingly high 2013 Champion of Champions Award winner Miel Meyer. standard of Dutch cheese in New Zealand. also achieved a hat trick taking out five awards including the “Every year Dutch-style cheese in New Zealand New World Champion Favourite Cheese Award (voted for by seems to get stronger and stronger. It’s fantastic to see this consumers) for Kapiti Kikorangi for the second year running. growth and consistency year after year,” said Smith. “On the tenth anniversary of these awards it’s fantastic to To add to its award haul, two of Mahoe Farmhouse cheeses see such a large number of gold medals awarded. It’s a real scored a perfect score of 100. Smith said this is an incredible testament to the increasing skill of New Zealand cheesemakers, achievement. especially the artisan end,” Smith said. l The iconic Kapiti brand produced by Fonterra Brands NZ has

FGC welcomes proposed Foodstuffs merger The New Zealand Food & Grocery Council (FGC) welcomes the proposed merger of the two Foodstuffs co-operatives in the North Island which operate grocery brands New World, Pak’nSave and Four Square. FGC CEO Katherine Rich said the move, which is subject to consultation with Auckland and Wellington members, court approval, and regulatory compliance, and follows work by the boards of the two New Zealand owned co-operatives, was a positive one. “Suppliers should benefit from dealing with one company instead of two, as well as faster decision-making,” says Rich. “There will be synergies, and this seems to be a logical step in grocery retailing in the North Island. “FGC looks forward to working with managing director-designate Murray Jordan, the present managing director of Foodstuffs (Auckland) Ltd, on issues of mutual interest that affect the food and grocery industry,” she says. l Murray Jordan.

FMCG march 2013

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news Countdown launches Onecard Visa credit card Countdown has launched the Onecard Visa credit card, an all-in-one loyalty card and credit card, that provides one of the most practical and rewarding loyalty programmes on offer in New Zealand. Countdown managing director, Dave Chambers, said; “Onecard Visa helps you turbocharge your Onecard points and earn vouchers faster, awarding points for almost all the everyday credit card purchases you make outside Countdown, wherever Visa is accepted. In addition, if you shop at Countdown using your Onecard Visa, you will earn double points. “When we looked at other credit card rewards schemes in New Zealand, some appeared to us to be quite complicated in terms of the rewards that they offered or how those rewards were able to be redeemed. But with Onecard Visa, the rewards you will earn will be delivered right to your door, in the form of vouchers redeemable at any Countdown store nationwide or online. “Onecard Visa delivers real and achievable rewards that can be used for customers’ everyday needs such as your weekly groceries or any treat you may find in a Countdown supermarket.” Onecard Visa is available from March 4, 2013, at a competitive interest rate of 19.99% on purchases. An establishment fee and annual account fee apply.

Chambers said customers will also be able to manage their finances with the ability to conveniently pay off accounts at Countdown stores. It will also be one of the first credit cards in New Zealand to use Visa payWave technology, in which transactions are processed with a wave of the card over a terminal. Countdown will introduce Visa payWave across all Countdown stores nationwide. “With Onecard Visa customers have an all-in-one Onecard loyalty card and credit card. With the addition of payWave it will dramatically increase the speed and convenience going through the supermarket checkout,” Chambers said. Countdown has partnered with GE Capital to launch the Onecard Visa. l

The end of Marmageddon It’s official! Marmite will be back on supermarket shelves by the end of March 2013. Sanitarium is in production blending and packing Marmite and stock will be delivered to supermarket distribution centres around New Zealand to be on shelf around March 20. In November 2011, Sanitarium shut down the sole production line of New Zealand Marmite at its Christchurch factory after a cooling tower at the factory was deemed unsafe, having cracked in the 2011 Christchurch earthquake and its aftershocks. In March 2012, the company announced that its own stocks of Marmite had run out. Some supermarkets reported at Sanitarium premises in Christchurch. the time they had already run out of stock, sellers asking for up to NZ$800 per jar. and there was only limited stock left in their The popular spread was first manufactured for commercial distribution centres, leading to the dubbing of Marmite as purposes in 1902 in England. Sanitarium bought the rights “black gold” and the crisis as “Marmageddon”. to distribute Marmite in Australia and New Zealand back There was reported panic buying of Marmite from in 1908, with Marmite making its first appearance on NZ supermarkets and many auctions for jars of Marmite, new shelves in 1910.l and used, were listed on online auction sites, with some

FMCG march 2013

National and regional food consumers delivered on a plate. Over $10M est. spent at shows AKL est. spend

97% of visitors purchased at the show

$6,944,224 $2,074,328

Brand awareness influenced

CHCH est. spend

$1,251,036

Exhibitors met sales target

62,899 visitors nationwide

97%

Purchased products at the show

WGL est. spend

$163 average spend per visitor $203

AKL Av spend

85%

CHC Av spend

78%

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 selling now - call for a no-obligation chat: Kylie Stevens

Dan Leighton

kylie@foodshow.co.nz

dan@foodshow.co.nz

0800 727 469 | +64 9 555 1143

0800 727 469 | +64 9 376 4601 C R E A T E

M O R E

WGL: 24 - 26 May 2013 AKL: 1 - 4 August 2013 CHC: 13 - 15 Sept 2013 Information on exhibiting:

www.foodshow.co.nz

our national food and wine event

Winner Best Consumer Show Under 10,000m2

Winner Best New Zealand Show

EXHIBITION & EVENT ASSOCIATION OF AUSTRALASIA

Statistics: 2012 post show reports conducted by leading statistics and research company Covec, for The Food Show, Baby Show and Healthy Living Show.

n a rgo n

Alcohol reform passed New legislation penalises retailers, says Trina Snow. Trina Snow, executive director, NARGON.

Way back on November 8, 2010, Justice Minister Hon Simon Power introduced the Alcohol Reform Bill.Although it was largely based on the Law Commission report authored by former Prime Minister Geoffrey Palmer, Labour, which had asked Palmer to examine the issue in 2008, immediately disowned the legislation calling it “pathetic”, “weak” and “insipid”.The main criticism was that it did not go nearly far enough. At the end of last year, long after Power had retired from Parliament and entered the higher echelons of the private sector, the various pieces of legislation he initially bought to the House regarding alcohol were eventually passed and will progressively become law over the next year or so. During the course of the parliamentary debates, supermarkets have been unjustifiably hammered by our elected representatives. Labour front bencher Su’a William Sio said that the “liquor industry and the supermarkets and dairies actively target our young people”. He provided no proof. Similarly, Labour MP Iain Lees-Galloway claimed Justice Minister Judith Collins watered down the legislation “under pressure from the supermarkets”. Anyone who has met or even seen Collins knows that she is unlikely to back down on key policies. Lees-Galloway’s Labour colleague Charles Chauvel said the problem was “cheap wine in supermarkets. That is what people use to pre-load before they go out on the town and buy from on-licences.” He has subsequently resigned from Parliament to take a job at the United Nations. The Maori Party opposed many aspects of the reforms. They called recent events “the liberalisation of alcohol sales” and specifically targeted “opening up supermarket sales” and extending opening hours, which they argue has resulted in an “increased number and density of outlets” creating “serious problems” in society. National MPs, who generally voted for the legislation apart from the minimum purchase age when they had a free conscience vote, were critical of some reforms.

FMCG march 2013

Backbencher Dr Jackie Blue said that “alcohol displays in supermarkets and grocery stores… particularly incenses me. My local supermarket changed the layout and made shoppers go down the alcohol aisle. You could not go left, you could not go right.You had no option but to go through the alcohol and that infuriated me.” Legislation reforming New Zealand’s alcohol laws was eventually passed by Parliament on December 11, 2012 – over two years after being introduced. It received Royal Assent on December 18, 2012 and is now law. What was previously the Alcohol Reform Bill is now three separate Acts: • Sale and Supply of Alcohol Act • Local Government (Alcohol Reform) Amendment Act • Summary Offences (Alcohol Reform) Amendment Act. The new laws replace the Sale of Liquor Act 1989 in stages from December 18, 2012. NARGON members who sell alcohol are advised to read the Government guidance carefully. The key points of interest are: • Territorial authorities can develop local alcohol policies (LAPs) to restrict or extend trading hours of premises, limit the location and density of licences, and impose conditions on licensed premises. • The national maximum trading hours from December 18, 2012 for off-licences are 7am – 11pm. • Under the new Act, promotions which promote excessive drinking, promote alcohol in a way that has special appeal to minors, advertise free alcohol or discounts of 25% or more, or offer free goods or services with the purchase of alcohol will now be offences. The Ministry of Justice has published an official guide to the legislation (http://www.justice.govt.nz/policy/ sale-and-supply-of-alcohol) including a series of Fact Sheets. These will be updated regularly and NARGON encourages liquor retailers to keep up-to-date and to follow every requirement of the new laws. NARGON remains absolutely convinced that licenses should be issued on the store’s merits (not the floor size or an arbitrary designation of store type) and that customers are not gullible enough to be influenced by in-store liquor promotions. However, those arguments have been lost (for now) and members need to adhere to the legislation. New Zealand has a problem drinking culture – but this legislation will penalise responsible retailers without addressing the key issues.

gs1

Join the party! Dr Peter Stevens reflects on a big idea - 40 years on. On April 1, 2013 Google’s search screen globally will recognise the 40th anniversary of the creation of one of the 20th Century’s ‘big ideas’ – the creation of the Universal Product Code & GS1 barcode. For most consumers, the barcode, almost omnipresent, is just ‘part of the wall paper’. It’s just ‘there’. We all know what the beep sound is; we all know what a barcode does. We just might not know who is behind it (GS1 and its members) and how it works. And so it should be. It just works. Consider, by comparison, the 3-pin power plug. This is recognised as one of standardisations’ biggest fail-

The FMCG industry deserves a pat-on-the-back. You changed the world! ures. A hero of mine – Nicholas Negroponte from the Massachusetts Institute of Technology – used to joke that the adaptors for phone and power he needed to travel weighed more than his laptop. But the GS1 barcode just works. So how did it come into being? About 40 years ago, a group of grocery retailers and suppliers got together in frustration to solve the “You call it this; I call it that” situation. Both retailers and manufacturers wanted to have a standardised identifier for buying and selling and re-ordering product. A downstream bonus was to have a standardised way to implement automatic data capture (i.e. scanning). Amazingly, the minutes of that first meeting show that the decision to implement a global language for identification took literally five minutes. One of the biggest ideas in the 20th Century was agreed in five minutes! The flow-on impact of those five minutes is in the Smithsonian

Dr Peter Stevens, Museum in Washington DC – the first CEO, GS1. product ever to be scanned (PK chewing Email: peter.stevens@gs1nz.org. gum) immortalised in a glass display case. Some sectors of the economy have only in relatively recent years begun to understand what the benefits of a standardised, global identification system are and are now moving to implement systems that benefit traders, regulators and consumers. The FMCG industry deserves a pat-on-the-back.You changed the world! Throughout 2013 and the early part of 2014, GS1 and its members will be recognising the 40th anniversary of the barcode and the ‘big idea’ that sat behind it. The anniversary celebrations will certainly not be backward looking. The supporting technologies (RFID, cell phones, EDI networks, the internet, QR code) may have changed, but the core needs served by GS1’s standards (identification, automatic data capture, sharing of information) are just as relevant now as in the 1970s. The Board and the team of GS1 look forward to celebrating with you this historic milestone over the next year.

march 2013 FMCG

Credit where credit is due Katherine Rich considers new initiatives in the fight against obesity.

im Mann is one of New Zealand’s most respected academics. He is Professor in Human Nutrition and Medicine at Otago University whose research has principally been in the fields of lipids and carbohydrates as they relate to coronary heart disease and diabetes and in the field of obesity. He has been a consultant physician at Dunedin Hospital for 25 years, has lectured at Oxford University, chaired the Heart Foundation’s Scientific Committee, is medical advisor to Diabetes NZ, director of the Edgar National Centre for Diabetes and Obesity Research and of the World Health Organisation (WHO) Collaborating Centre for Human Nutrition, has worked with the World Cancer Research Fund on obesity’s role in cancer, written and edited several textbooks and popular books, has chaired international and national organisations concerned with nutrition, diabetes, and cardiovascular disease, authored or co-authored

FMCG march 2013

more than 300 papers on obesity and nutrition, won awards and research grants … the list goes on. Small wonder, then, that when he publishes a finding the medical world sits up. Which is what happened recently when the British Medical Journal published a study conducted by him and his team at Otago University on behalf of the WHO about the effects of sugar. They analysed the results of 68 trials and studies of sugar intake and body fat, and reviewed the evidence on the association between consuming free sugars (those added to foods by the manufacturer, cook, or consumer, or those naturally present in fruit juice, syrups, and honey) and body weight in adults and children. In a nutshell, their conclusion was this: Eating less sugar is linked to weight loss, and eating more is linked to weight gain – cutting down on sugar has a “small but significant” effect on body weight. It basically affirmed the known truth that if you eat too much and don’t get enough exercise, you’ll gain weight over time. As you would expect, some commentators immediately jumped in and claimed it is all the food industry’s fault – that it promotes and sells food and beverages containing sugar and other calories but is not interested in being part of the solution to the obesity epidemic. Unfortunately, such statements are made out of ignorance. You don’t have to dig too deep to see that, in fact, the food industry – from the supply community through to retailers, and even some fast-food restaurants – is involved in many

innovative programmes designed to promote healthy food choices. They are trying very hard to change people’s habits. So what are some of these initiatives? • Some 18 of FGC’s member food companies are part of the Heart Foundation’s Fuelled4life initiative, which involves the education, health and food industry sectors working together to inspire schools to provide tasty, nutritious products and to encourage the food industry to produce and supply healthier foods and beverages that young people will want to consume. This has involved some companies investing in reformulating products to be accepted into the programme. • Sanitarium runs a national 0800 nutrition service staffed by nutritionists who promote the benefits of good food and a healthy lifestyle. Sanitarium also sponsors Weet-Bix Kids TRYathlons. • Nestlé runs an online resource, Be Healthy, Be Active – Kia Ora, Kia Korikori, for teachers, which educates intermediate school children on the importance of a balanced diet and exercise. Nestle is also behind Cook for Life, which teaches at-risk children how to cook and make healthy food choices. Via its sponsorship of MILO rugby in Auckland, Nestle distributes advice on healthy eating as part of a package for every child who registers to play. • Coca-Cola Oceania has run webinars on topics such as dairy, saturated fat and heart disease, mastering the energy gap and fructose, has introduced lowkilojoule and no-kilojoule versions of drinks,and has committed to rolling out

featu re low-calorie or no-calorie options for most of its beverages by the end of this year. It also funds health initiatives for at-risk Pacific Island families through Diabetes NZ. Coca-Cola Amatil and Frucor have agreed to not sell fullsugar and energy drinks to schools. • Sanitarium and Fonterra sponsor the Kick Start breakfast programme which has delivered more than two million breakfasts to children in decile 1-4 schools since 2008 and operates in 60 percent of decile 1 schools. • NZ Sugar funds an independent Sugar Research Advisory Service, which encourages appropriate use of sugar as part of a healthy and balanced diet. • Heinz Wattie’s sponsors Project

Cook, which is used in the technology curriculum for years 7 and 8 to help children make healthier food choices by teaching them how to cook basic foods. • Foodstuffs runs Food for Thought, a nutrition education programme that helps year 5 and 6 children make healthier food and lifestyle choices. • The food industry supports the Nutrition Foundation’s Food Week and Just Cook initiative, which focuses on cooking at home and eating well. • Some food companies have implemented portion-size and/or calorie reduction projects. For example, Mars has a calorie restriction on many of its chocolate bars, and maintains strict codes around marketing

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

and advertising to children. • The industry funds the Food Industry Group, which is working with quick service restaurant food retailers on health ideas. • The Grocery Charity Ball is this year sponsoring the Steps for Life Foundation, which works with overweight young people to encourage healthy lifestyles and help them lose weight. I’m sure there are others out there that I’m not aware of (but which I would like to hear about). So, credit where credit is due. Of course more can be done, but FGC members are continually looking at new ways of promoting healthy eating choices.

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march 2013 FMCG

Tick still going strong after 15 years It is more than just a Tick; it helps people make healthier food choices as part of their life, explains the Heart Foundation’s Natasha Singh.

onsumer habits may be changing, with more people shopping online and spending less time in store. We are bombarded by nutrition claims and symbols on pack and seek answers to nutrition queries on the net, but there’s one constant – the Heart Foundation Tick. After 15 years the iconic Tick brand remains top of mind when it comes to helping consumers make healthier choices. The Tick is more than just a trusted and credible front of pack label for consumers. The Tick aims to improve the nutritional profile of the food supply in a direction consistent with the Heart Foundation and the Ministry of Health’s nutrition policies and recommendations for the general population. Natasha Singh says “consumers are becoming increasingly health conscious and household shoppers are looking for a quick, easy and trusted way to choose healthier products. Latest independent consumer research shows that 66% of people found the Tick makes it easier to shop for healthier food choices and 71% believe that a Tick product is a

FMCG march 2013

healthier choice compared to similar products”. The Tick brand keeps growing with over 1100 Tick approved products and this continues to increase year on year. The Tick team continues to engage with licensees and manufacturers, especially when licensees are developing new products or are about to reformulate existing products, in order to help them meet the Tick programme’s strict nutrition criteria. An example of this engagement is that there are now more than 120 Tick approved Pams products. When refreshing and giving packaging a facelift, Foodstuffs looks at reformulating products to meet the Tick standards. Nadia Shepherd, brand manager for Foodstuffs Own Brands, says: “We have recently reformulated our specialty bread range (Pams Wraps, Naans and Paninis) to contain more fibre in order to meet the criteria of the Heart Foundation Tick. We feel it is beneficial to display the Tick on these products so consumers are aware of the heart-health benefits associated with them”. New Zealand’s leading sausage maker Hellers has recently released its first sausages approved to carry the Heart Foundation Tick. Hellers marketing manager John McWhirter said:“The idea came from recognising the trend towards health driven food purchasing. If we could produce sausages that met with the ‘Heart Foundation Tick’ standards this could

create a whole new growth segment, particularly with health conscious women buying for themselves and their family. “The project was challenging and it took nine months to achieve the standards and tastes that would appeal”. Hellers launched three chicken sausage varieties carrying the Tick logo in October last year: Chicken Parmigiana, Chicken Kashmir and Chicken Vietnamese. These were launched as part of Hellers’ new premium pre-cooked sausage range and immediately established a new and growing market for this innovative move by Hellers into the healthy eating sector.” The Tick team enjoys a strong relationship with all its licensees and actively engages with licensees seeking their inclusions in the monthly Tick Club e-newsletters, resource development, Facebook posts as well as special events, including the Auckland Food Show. Singh says: “Our consumer Tick Club has a strong following with over 33,000 members. These members are committed and loyal to making healthier choices as part of their life. The Tick e-newsletters are a great opportunity for our licensees to promote their products as well as edify consumers on their product range”. The Tick team continues to create resources available free of charge to consumers and health professionals via the Heart Foundation website heartfoundation.org.nz.

Get the Tick The Tick is displayed on over 1,100 food products, making it the most prominent and visible certified trademark in the market place. Tick licensees can leverage the power of the Tick logo both on pack and in advertising.

Strongly agree or agree Agree a little

Consumer research I am more likely to try a product if the Tick is on it.

I trust the Tick.

68%

13 86%

Licensee benefits t Free marketing opportunities to showcase your Tick products through our Tick Talk e-newsletter which reaches over 30,000 household shoppers t S howcase your Tick products and recipes in our Tick shopping guide and Tick recipe guide (over 50,000 print run per annum) t Opportunities to leverage special events such as the Auckland Food Show.

I feel more positively towards brands that have the Tick than those that do not carry the Tick.

14 78%

The Tick makes it easier for me to shop for healthier food choices.

8 74%

Recent consumer research showed that 85% of main household shoppers recall seeing the Tick on food packaging or labels. Statistics from Phoenix Research, Awareness Usage & Attitudes June 2012

A word from our Licensees " The Tick is more than just a symbol. There's a

team of people behind it, promoting it and supporting users like me to create brand awareness". Paul Jolly – Company Director, 100% Nutz Ltd " The relationship we have with the Heart Foundation and the Tick brand is paramount to us... we include the Tick on our packaging wherever possible and have been doing so for the last 3 years."

Sarah McRae – Marketing Manager, Freshmax NZ Ltd

Get the Tick now Contact the Tick Team today at tick@heartfoundation.org.nz and quote ‘FMCG’ in the subject line. For more information visit www.heartfoundation.org.nz/GetTick

feat ure Singh explains: “We currently produce two resources – the Tick Recipe Guide and Tick Shopping Guide. The Tick Recipe Guide is produced twice a year with summer and winter editions, and our latest edition, Tick Recipe Guide Summer Sensations, has healthy, affordable, delicious summer recipes complete with cost per serve and nutrient information. The recipe guide provides a great opportunity for licensees to showcase their products. The Tick Shopping Guide is updated annually with new Tick products. A recent survey showed that 65% of Tick Club members order the resources and find them valuable”. Singh says: “We are evolving the marketing of the Tick programme by using more digital and social media. This will allow us to both grow the Tick brand, and become more strategically outcome focused demonstrating to food manufacturers the ‘bottom line’ benefits of having the Tick on their products, whilst

The Tick aims to improve the nutritional profile of the food supply in a direction consistent with the Heart Foundation and the Ministry of Health’s nutrition policies and recommendations for the general population. continuing to improve the nutritional profile of the food supply in a positive direction”.

To find out more on how to become a licensee contact the Tick team on (09) 526 0895.

Natasha Singh is the marketing coordinator for the Heart Foundation Tick Programme. Natasha graduated with a Bachelor of Business majoring in Marketing and Management at the Auckland University of Technology. Email NatashaS@heartfoundation.org.nz

What’s Hot - ‘Pick the Tick’ For shoppers seeking the benefits of convenience, Waitoa Free Range Chicken has launched three new products into the packaged frozen category, continuing its focus on leading the market in product innovation and quality. Waitoa’s Original Tenders, Lite Breast Fillets (Lemon, Herb & Garlic) and Tempura Nuggets are the first 100% New Zealand free range packaged frozen chicken products to be introduced into the rapidly growing New Zealand free range market. Waitoa spokesperson Jonathan Gray says, “The Waitoa team are proud of our Green Box range, which is the result of a very dedicated product development team committed to delivering exceptional free range products that meet the market need.” All Waitoa Green Box products carry the National Heart Foundation Tick of approval, with chicken raised under accredited Free Range Egg and Poultry New Zealand (FREPNZ) standards. “We’re excited to introduce these new products into the rapidly growing market. They are quick and easy

FMCG march 2013

to prepare, so they’re perfect for consumers seeking convenience. Waitoa Green Box products are high quality and demand for these products has been high, suggesting they have been well received by customers,” Gray says. Waitoa free range chickens are grown in the green sunny valleys of the Waikato region. Born out of a desire to offer tasty, nutritious, home-grown chicken, Waitoa focuses on delivering exceptional free range products that meet the growing free range market need. “Being proudly free range is worth the extra effort, and we think consumers will agree,” says Gray.

Free range

in a Box

NEW PRODUCT

An out-of-the-box kiwi first, free range packaged frozen ... Waitoa naturally. Waitoa free range Green Box Original Tenders, Lite Breast Fillets (Lemon, Herb & Garlic) and Tempura Nuggets ... set to expand the packaged frozen category. New - NZ free range frozen first Consumer appeal - natural choice

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SALES OFFICE: P.O. Box 247 Te Aroha, 624 Waihekau Road, Ngarua R.D. WAITOA. Free phone 0508 800 785 Fax: (07) 884 6542 CERT TM used under licence.

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

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

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

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

SHOT TO BITS

Photos: thinkstockphotos.com

Cherries and asparagus

FMCG march 2013

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

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

time of year, inexpensive and with the best meat to shell ratio.

MEAT World commodity prices are generally high; but it is good news on the red meat front for Kiwis. All meat schedules have dropped, thanks to our high domestic dollar. Beef More very good news for the FMCG sector – local trade schedules are still easing this February at 400-410c/kg at time of writing. Lamb The price trend is again weaker at time of writing. The big dry has pushed stocks forward and with the currency strengthening this has meant prices are falling in the domestic market. And all indications are that prices have not bottomed out yet. Mutton The mutton schedule is also falling and rapidly. Farmed venison Still more good news for our sector with an on-going fall in summer schedule. This is a quiet time of year and plentiful supply of other game meats overseas has subdued demand. After earlier optimism on how well venison was handling the European crisis, summer schedules are now back to levels last seen in 2007 and will disappoint breeders hoping the fall in numbers was about to reverse, which is good for domestic prices in the short term but dangerous in the longer term. The currency and price competitiveness with lamb and mutton has seen higher value venison cuts under pressure and reduced the summer schedule further.

FRUIT Volumes and varieties of fruit will be shrinking, particularly berries and stone fruits towards the end of

top quality are bananas including the fair trade and organic fruit and pomegranates from California.

VEGETABLES this month, but this is still a great time for New Zealand fruits. Other fruits though will start to come on stream: passionfruit have arrived and limes have finally returned to the marketplace and the first New Zealand kiwifruit will show up at the end of March. Rock melon and watermelon volumes have increased and prices have come back markedly. NZ pears are well in and our early varieties of apples are here with more strains coming on stream as the month progresses. By mid-April the choice really takes off. It has been a brilliant season for stone fruit but the number of stone fruit varieties available will diminish as the month progresses, as will the volume. Still available will be the later varieties mainly from the South Island – Omega and Songold plums; Fantasia and Summer Blush nectarines; Genevieve and Southern Cross apricots; Peacherines, Golden Queen and Black Boy peaches from Hawkes Bay; Yumyeong and Marchesa peaches from the south, but cherries are pretty well shot to bits. Raspberries will be around but price will increase as volumes come back. Blackberries and blueberries will be plentiful but will finish in April. Avocado volumes will start to drop by the end of the month as will lemons and oranges, but there will be plenty of imported citrus. From offshore mangoes and pineapples are the best buying and of very good quality. Also of

The dry weather has affected some crops, but generally supply has been very good and by the end of March many of the vegetables we have been enjoying in abundance will tail off. Courgette, aubergine and sweet corn volumes will peak and the prices will be as low as they will get this year, but volumes will drop back in April. Capsicums will hold on until May, but the New Zealand tomato crop will fall from its peak early in the month. Runner beans are in the marketplace as are the other varieties of bean, however all the New Zealand grown beans will be finished by mid-April. There will be plenty of beetroot and new season Kumara for the next couple of months. All the annual herbs are in full swing and supply should be good over the period as will be salad leaves and rocket. New potatoes are finished but the traditional ‘Maori’ varieties are here for those who like something a little different. Red cabbage will turn up in the market later this month as will the first Brussels sprouts from the central North Island. There will be lots of good quality pumpkins around and leeks will be of better quality from mid-March. And of cause this is the month for fresh corn on the cob.

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M FISH OF THE MONTH Seafood New Zealand dishes up all you need to know about this month’s ‘neatest’ seafood item – Bluff oysters.

arch marks the beginning of the 2013 Bluff oyster season, and it looks like it’s going to be a bumper one. Avid Bluff oyster lovers are already discussing their favourite ways to serve these rich and creamy prized delicacies, and the collective opinion seems to be to serve them fresh and ‘neat’ – no need to add a thing. New Zealand’s Bluff oysters are nature’s own ready-made snack or meal ingredient. For those who enjoy cooked oysters, Seafood New Zealand recommends you try “Oysters Casino”– Bluff oysters served with a bacon, spring onion and Worcestershire sauce, grilled or baked and oh-so-tasty (recipes are available on fishofthemonth.co.nz). As Bluff oysters have a particularly robust shell, they are mainly available to consumers pre-packaged (usually in pottles) and ready to eat. This keeps the oyster meat fresh and means that Kiwis all over the country can enjoy these tasty treats from Bluff. A number of specialised seafood suppliers also have Bluff oysters available live or fresh in the half-shell, though they are most commonly seen served this way at restaurants. Some restaurants have been known to kick off the season with Bluff oyster opening nights, where a trained ‘expert’ will open the oysters on display for diners too see.

The oysters from Bluff are reputed to have aphrodisiac properties due to their high levels of zinc, which assists with hormone regulation and may have an effect on libido (though very few studies have been conducted to prove this). Zinc is an essential trace mineral as it assists with many important functions in our bodies including supporting the immune system to function well, assisting with muscle and bone health, and is important during pregnancy to aid growth and development of the baby. Bluff oysters also are a good source of vitamin B12, selenium, iron and iodine. Bluff oysters are in high-demand through their tightly-controlled season. They’ve been commercially fished in Foveaux Strait for over 140 years, starting in the late 1889s. Today, New Zealand’s Quota Management System limits the total amount which can be harvested, ensuring we continue to enjoy New Zealand’s most famous delicacy. Want to know more? The Fish of the Month website offers easy-to-understand information about consuming the selected species for all of its benefits. Available are an array of further information resources on nutrition, pricing, availability, meal ideas and sustainability information. Find out more about Bluff oysters at fishofthemonth.co.nz.

ABOUT FISH OF THE MONTH Seafood New Zealand’s Fish of the Month programme is 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. Fish of the Month is an initiative of Seafood New Zealand, the national body representing the seafood industry at a national and international level.

FMCG march 2013

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Rise and shine FMCG finds healthy, natural products and convenience are still among the key drivers in the breakfast cereals category.

arraways, New Zealandâ&#x20AC;&#x2122;s iconic oat mill is launching a totally new concept to the muesli market in March 2013. The new Muesli Base is pre-baked, taking the hard work out of muesli preparation. Muesli lovers still have the pleasure of creating their own muesli but the time consuming part, roasting and toasting the oats and adding honey has all been done by Harraways. Muesli Base is cost effective and ready to use, free from artificial flavours and colours, 100% NZ grown and made, great for allergy or taste sensitive people and the 24

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breakfast cereals

“The total market for cold and hot breakfast cereals is growing at 4.8% in New Zealand.” Ros Goulding, Harraways marketing manager

unsweetened version is suitable for diabetics. Consumers can just add fresh fruit or whatever tickles their fancy. The Muesli Base can be customised to suit specific dietary requirements. Harraways has created three exciting variants with different levels of sweetness to suit different target markets: Muesli Base – Roasted Oats and Barley Flakes (unsweetened), Roasted Oats and Barley Flakes (with a hint of honey) and Muesli Base, Honey Roasted Jumbo Oats. Muesli Base is expected to be instore nationally early March 2013 across all major supermarket chains and sure to be a great price as well. “Harraways is number one in Total Key Accounts (MAT To 03/02/13) in the hot breakfast cereal category,” says Ros Goulding, marketing manager. “The total market for cold and hot breakfast cereals is growing at 4.8% in New Zealand,” she says. Harraways is New Zealand’s only oat mill and is still a New Zealand family-owned business. The company was established in 1867 by Henry Harraway and is located on its original site in Green Island Dunedin. Harraways source oats from Otago and Southland where climatic conditions are excellent for growing quality oats.

Sanitarium Sanitarium is the leading breakfast cereal manufacturer in New Zealand with a broad range of brands, says Mark Roper, national category manager. “These include the iconic WeetBix, NZ’s favourite breakfast cereal, Up&Go Liquid Breakfast (now the #2 selling brand), in addition to Light’n’Tasty, Sanitarium Muesli, Cluster Crisp, Skippy Cornflakes and a number of other family favourites,” he explains. In the last 12 months Sanitarium has released: Cluster Crisp Manuka Honey; Sanitarium Muesli Strawberry & Rhubarb; and Up&Go Energize Choc 6x250ml. “Sanitarium Cluster Crisp Manuka Honey has contributed to some of the fantastic 43% growth of the Cluster Crisp brand in the last year,” says Roper. “Sanitarium Muesli Strawberry & Rhubarb is a great unique flavour for consumers, that has contributed to some of the 8.5% growth of the Sanitarium Muesli brand in the last year. Sanitarium Up&Go Energize Choc 6x250ml has been introduced to trade shoppers up from the already established Up&Go Energize Choc 3x250ml, resulting in incremental sales of the Energize brand.

THE BREAKDOWN Current MAT to 27 January 2013 Total Breakfast Cereals: $271.174m Value % Chg vs YA 5.0 T. Adult: $59.392m Value % Chg vs YA 8.7 T. Convenience: $27.338m Value % Chg vs YA 15.8 T. Family: $93.555m Value % Chg vs YA 2.1 T. Hot – Sachet: $8.679m Value % Chg vs YA 1.9 T. Hot – Standard: $21.332m Value % Chg vs YA 6.5 T. Kids: $24.706m Value % Chg vs YA -0.4 T. Muesli: $36.173m Value % Chg vs YA 3.3 *Nielsen New Zealand ScanTrack (Databank)

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“The most common trend we are seeing domestically and internationally is a need for true, on-the-go convenience.” Mark Roper, national category manager, Sanitarium The Up&Go Energize brand is currently the fastest growing UP&GO sub-brand in New Zealand,” says Roper. In March Up&Go Energize Iced Coffee Flavour is being launched. Roper explains: “Coffee has a great fit with mornings as 65% of all coffee is consumed during breakfast hours*. It also meets the needs of time poor consumers looking for a coffee-flavoured on-the-go option. The whole Energize range has also been reformulated to now contain twice the protein of liquid breakfast, great body fuel for busy times.” In the next few months Sanitarium will be releasing two new variants into the Weet-Bix Bites Range to broaden the appeal beyond fruit flavours. “Weet-Bix Bites Crispy Grains & Seeds is a delicious mix of five grains, sunflower and pepita seeds for a natural, wholegrain-rich combination of flavours; also Weet-Bix Bites Rough Crumble is a more-ish blend of toasted wheat, oats and chunky shredded coconut, with a hint of golden syrup,” says Roper. “The most common trend we are seeing domestically and internationally is a need for true, on-the-go convenience. Breakfast skipping is increasing with one third of people in NZ skipping breakfast at least once per week (and half of under 34 year olds). Products that can be consumed on the go are growing as 26

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‘dashboard-dining’ and ‘desk-fasting’ increases, along with breakfast eaten at quick service restaurants or cafés.” Roper adds: “The Weet-Bix TRYathlon series is in full swing through the summer months, with 13 events held throughout New Zealand. This iconic event – the largest kids triathlon event in the world – receives fantastic community support, and encourages kids to ‘give it a try’, rewarding all with a winners medal and the opportunity to meet famous NZ sporting people at every event. * Source: The Specialty Coffee Association of America (SCAA) www.e-importz.com - coffee statistics report All market data references: Aztec NZ Scan 13/1/13 MAT.

Nestlé The Nestlé portfolio includes Milo, Cheerios, Nesquik, PLUS, Uncle Tobys Oats Quick Sachets, Uncle Tobys Rolled Oats, Uncle Tobys Milk Oaties. Milo Crunchy Bites was launched in August 2012 – aiming to tap into an under developed segment of the market – teenagers. PLUS Calcium was launched in February 2013 – a unique recipe that delivers to the key nutrient of calcium, which is not widely delivered or spoken to within the breakfast cereal category. Mark Fisher, country business manager – Nestlé Cereals says: “For the fourth quarter of 2012, Milo Crunchy Bites delivered $200,000

in scan sales, so it is on track to be worth $800,000 for the full year (Nielsen data to 30/12/2012). “We will continue to launch new products in the quick sachets range, which is in strong growth off the back of the move towards convenience, which is a big consumer trend. We will launch some range extensions with some very popular flavours – Creamy Vanilla and Berry as well as launching a multigrain variety pack. This will be the only multigrain product in the ‘value added oats’ segment and will therefore reach a unique target.” “There is an overarching trend towards hot oats as consumers seek out more natural products,” says Fisher. “We have seen the oats segment consistently outgrow the RTE segment over the past few years and this continued in 2012 with $ growth of 6.3% vs. 4.3% and volume growth of 3.6% vs. 0.2% (Nielsen Scan data – MAT to 30/12/2012). There is a continued trend towards convenience – strong growth for liquid breakfast offerings and the large scale launch of Fonterra’s ‘Fast Start’ into this segment. We are also seeing the impact of the consumer trend to convenience with the continued strong growth of sachet oats. This can only be good for the retail trade as consumers move to higher $/kg offerings.”

Vogel’s breakfast cereals Lizzie Hart, sales support manager, told FMCG: “In my experience over the past year there has been a growing consumer trend for healthy lifestyle options that suit the entire family. “This past year we have been really focused on better understanding what consumers are looking for and have restructured our ranges to meet their needs.Vogel’s family range

brea kfa st cereals

has been split into two separate sub brands; ‘All Good’, which is focused on delivering the Vogel’s nutritional promise for those looking for a healthier option to share with the entire family and ‘Clusters’ for those who enjoy a more fun and flavourful breakfast. Old favourites Golden Crunch and Supernatural have been re-branded under All Good along with new All Good Almond, Cashew & Linseed, which is protein-packed and brimming with crunchy oats, nuts and seeds with only 7 percent sugar. Crunchy Honey Clusters will stay in the range with new Cranberry & Blackcurrant Clusters. “The newest addition to our Café-Style Light range is Almond & Ancient Grains. This is a first to market innovation in breakfast cereals designed for optimum digestive health especially for those following a ‘FODMAP’ friendly diet.” Hart says: “Vogel’s continues to drive growth in the muesli category. All NPD was launched in late September / early October and in the latest quarter we see Smartfoods growing (at +14.5% ahead of the category at +6.7% and equal to the category at +7.9% on MAT. Vogel’s are now the #2 Brand in Muesli in PEL - Aztec).”

Hubbards Rebecca Bergs, marketing manager at Hubbard Foods says: “The muesli segment is the second largest breakfast cereal category, worth $40.8m (MAT) and consistently is one of the fastest growing segments, with 8.1% growth. “People are increasingly looking for a better balance in their diet with more natural, wholesome, tasty foods. Muesli is well-positioned to capture this trend and offers plenty of scope for innovation to drive growth.” Hubbards started out in muesli 22 years ago and has been a consistent number one player in natural (untoasted) and toasted muesli. Fruitful Breakfast and Berry Berry Nice continue to be among the top 10 mueslis. In addition, Hubbards Simply muesli range has gone from strength to strength (+32.9%) and provides people with value-for-money, simple muesli blends, explains Bergs. To further drive segment growth, Hubbards is launching the Amazing Muesli range in March 2013, which provides consumers plenty of choice in different muesli types including natural (untoasted), lightly toasted, toasted and double toasted blends. Each muesli also offers its own tasty twist such as Blueberry & march 2013 FMCG

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Pomegranate, Almond & Pecan and Feijoa & Apple. The innovation extends beyond the muesli to the packaging. The packs are compact with a contemporary, natural design providing a strong brand block and high impact on shelf. “It’s about offering innovation, convenience, variety and a delicious taste experience to muesli lovers,” explains Bergs. For more information go to hubbards.co.nz or visit facebook. com/hubbards. Source: Aztec,TKA MAT to 3 February2013.

Cec’s Homestyle Products Cec’s breakfast cereal variants include: • Cec’s Traditional Muesli 500g

• Cec’s Gluten Free Muesli 400g • Cec’s Gluten Free Fruit Muesli 400g • Cec’s Porridge / Bircher 400g Alister Buchanan, managing director, says Cec’s Gluten Free Fruit Muesli 400g was the most recent launch. “We have had strong sales growth over the last 12 months. Our figures show an increase of 50%.” The company is also planning to launch Cec’s ‘Gluten Free Bar’, to be released within three months. “The bar will be based on our popular Gluten Free Muesli, explains Buchanan. He says: “The Premium cereal segment is relatively new and has experienced strong growth over the past three to four years. Consumers are looking for, and are prepared to pay for, ‘home-style’, old fashioned products using quality wholefood ingredients. Products made the way your grandmother made them.”

VitaGO Vitasoy launched VitaGO, its range of liquid breakfast drinks, into New Zealand supermarkets in December 2012. The Chocolate and Banana & Honey varieties are stocked nationally in PAK’nSAVE, New World and Countdown supermarkets. “Made with soy, oats and barley, VitaGO is a low GI liquid breakfast and the only dairy and lactose-free

FMCG march 2013

breakfast drink offering available in New Zealand supermarkets,” says Neil Hinton, general manager, Vitasoy Australia Products. Health trends have been shaping the breakfast cereal category, with many brands emphasising the health and functional aspects of products. Hinton says: “VitaGO includes the protein, fibre and energy of a nutritious breakfast* with no artificial flavours, colours or preservatives. With 10 essential vitamins and minerals, people can be confident they’re getting a great start to the day.” Vitasoy is intending to extend the VitaGO range as the category continues to experience growth and to meet the demands of consumers looking for a dairy-free option. * Based on a bowl of cooked oats: 30g raw oats made with ½ cup of water and ½ cup of low fat milk

Kellogg’s Almari Du Toit, category & shopper insights manager, Kellogg’s NZ says: “Ready to eat cereal (RTEC) generates over $214m (FY 12) and contributes 79% of total breakfast category sales. Liquid portables contribute 9.8% and Hot Oats 11%. Kellogg’s is the second largest manufacturer of cereal in the NZ market with 29.8% share within RTEC. Kellogg’s had a great year with sales growing at 10.6% (ahead of category

breakfast cereals

performance up 4.4%) and contributing 68% of the category’s growth (FY 2012).” Kellogg’s has well known subbrands such as: Nutri-Grain, Special K, Sultana Bran, Coco Pops, Just Right, All-Bran, Crunchy Nut, Mini Wheats and Kellogg’s Cornflakes and Rice Bubbles. Kellogg’s also has the Be Natural brand, which appears in both the cereal aisle and nutritious snacks. Du Toit says: “Kellogg’s NutriGrain had an extremely strong year in 2012 with a massive +11% value growth. One of Nutri-Grain’s key focuses is involvement in sport and the community. In 2013 Nutri-Grain is once again proud to be the naming rights sponsor of the Nutri-Grain Ironman New Zealand event. NutriGrain is also proud to be the official cereal provider for the Vodafone Warriors and to partner with them in their community programme, Breakfast Warriors, communicating the importance of having breakfast to school aged children. Nutri-Grain also sponsors New ZealandTriathlete, Ryan Sissons and the Triathlon New Zealand Tri-School champs. “Nutri-Grain also focuses on bringing unique offers to store to excite our customers and consumers. Our November/December 2012 Nutri-Grain Summer campaign celebrated getting the most of the

Bircher Muesli made with Harraways Muesli Base.

New Zealand Summer, highlighting iconic Kiwi recreational activities that resonate with our consumers. “In March 2013 it is all about variety and news to keep life interesting for teenagers. New Limited Edition Nutri-Grain Honey Flavoured Crunch is a full flavour experience to lift your mood and energise your day. It combines a hit of honey with the great taste of Nutri-Grain’s unique combination of corn, oats and wheat. It’s high in protein and high in carbs to keep you energised throughout the day. “Special K NZ launched its My Special K website in January 2012. A unique tool on the site allows con-

sumers to input lifestyle and current exercise habits to create an eating and exercise plan that’s tailored for them. The healthy eating plans are based on low GI, high protein meals. FY 2012 Special K grew at 13.5% which included the launch of SPK Fruit & Nut. The Special K range consists of three sub-segments giving consumers a wide variety of choice: Special K Original available in standard and large pack size, Special K Advantage with its unique fibre offering and the three fruit/nut variants: Special K Forest Berries, Special K Honey Almond and Special K Fruit & Nut (launched 2012),” she says. Source: Aztec scan data to 30/12/2012

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Sweet fix What’s new in chocolate and confectionery? Suppliers share their updates and predictions for the year ahead.

he chocolate category is worth $260m* and several key trends, including increasing convenience, innovation and shifting towards high-end chocolate, are expected to impact the chocolate market over coming years**. Nestlé competes in the blocks, bars, boxed and treat size segments. The Nestlé portfolio in chocolate includes Kit Kat, Milkybar, Aero, Chokito, Pixie Caramel, Rolo and Smarties. Dallas Smyth, CCSD manager Nestlé NZ told FMCG: “As consumers become more demanding, innovation is crucial for growing sales so when Nestlé launched ‘Kit Kat Chunky 3’, the first 13 weeks was the most successful chocolate bar launch of the year in Total Supermarkets***. Following on from that success Nestlé released Kit Kat Chunky 3 Chocolate, ensuring all three bars were in the Top 35 in TSM at the end of 2012. “New news is something consumers expect from this brand so Nestlé have recently launched Kit Kat Chunky 3 Mint - a crisp chocolate wafer finger topped with three different breakable mint chunks,” says Smyth. She adds: “The Block segment grew at 10.7% value and Nestlé value growth was ahead of the segment at 11.7%*. This strong growth was supported by the launch of Aero Caramel Block to further excite the segment along with growing the 30

FMCG march 2013

core range. “Expect more exciting chocolate innovation at great value from Nestlé this year. We are committed to introducing new news driving chocolate purchasing and category value growth.” * Nielsen ScanTrack Total Supermarket MAT Data to 30 December 2012 ** TNS New Zealand Independent Research 2012 *** Nielsen ScanTrack Total Supermarket Data

Sugar innovations The sugar category is worth $114m* with Nestlé in the family bags, jumbo bags, card/tubpacks and stick/roll pack segments, explains Smyth. The Nestlé portfolio in sugar includes Allens, Wonka, Heards and Black Knight. She comments:“Allens Oddfellows is an iconic New Zealand brand for consumers and continues to perform well in the total supermarket channel. Mint flavoured confectionery is in the top five flavours within the sugar category. It seemed a natural progression to move to a softer chew version of the original. “New news drives market share especially in family bags so on January 28, 2013 Nestlé launched Allens Oddfellows Chewy – a challenging mouthful of minty refreshment you can chew and chew and chew. “Within the stick/roll pack segment Wonka is a unique and compelling brand proposition for consumers and continues to get strong growth in total supermarkets with the Fabulicious Raspberry

chocolate & confec ti one r y

THE BREAKDOWN Current MAT to 27 January 2013

Twist, Fabulicious Sherbet Fizz and Nerdalicious in the stick pack format. “The Wonka team invents new flavours and products that stand out as different from other brands. Wonka products are great tasting, packed with flavour and excellent quality.” Smyth adds: “Watch this space for more sugar innovation at great value from Nestlé this year.We are committed to introducing new news driving sugar category value growth.” * Nielsen ScanTrack Total Supermarket MAT Data to 30 December 2012. ** Project Sugar Cane 2012

Total Confectionery: $432.472m Value % Chg vs YA 5.4 T. Bar/Chunky: $53.168m Value % Chg vs YA 3.6 T. Block Chocolate: $102.705m Value % Chg vs YA 10.6 T. Boxed: $52.344m Value % Chg vs YA 4.3 T. Bubble Gum: $0.882m Value % Chg vs YA -4.8 T. Bulk Bags: $1.317m Value % Chg vs YA 2.0 T. Card/Tub Packs: $5.107m Value % Chg vs YA 14.2 T. Chewing Gum: $22.247m Value % Chg vs YA 5.0 T. Christmas Confectionery: $4.722m Value % Chg vs YA -8.2

T. Easter Confectionery: $29.768m Value % Chg vs YA 4.0 T. Family Bags: $78.456m Value % Chg vs YA 2.8 T. Gift Pack: $0.502m Value % Chg vs YA -22.5 T. Handy Bags: $4.314m Value % Chg vs YA 26.2 T. Jumbo Bags: $20.756m Value % Chg vs YA -1.9 T. Multi Pack: $5.506m Value % Chg vs YA -12.5 T. Novelty Bar: $2.809m Value % Chg vs YA -0.2 T. Stick/Roll Packs: $21.004m Value % Chg vs YA 8.9 T. Treat/Fun Pack: $26.865m Value % Chg vs YA 11.0

Donovans April 2013 marks the two-year anniversary since Prolife Foods acquired Donovans Chocolates from the Donovan brothers, Mark and Paul. Since then, the brand has been redesigned to reflect its core values of warmth, craftsmanship and quality. A bespoke range was developed, which has seen some exciting new additions to the range of chocolate bars, fudge and chocolate pouches, selections box, souvenir gift boxes

* Nielsen New Zealand ScanTrack (Databank)

and one pound boxes. New products featured strongly in the Donovans range in the past year. The 100g chocolate bar range saw the addition of the new innovative flavours Kiwifruit Milk Chocolate and Manuka Honeycomb Milk Chocolate.

march 2013 FMCG

cate go r y c h e c k “Proudly made in the Waikato – the heart of the New Zealand dairy country, Donovans chocolates are lovingly crafted using Swiss technology mixed with a good dose of Kiwi ingenuity.” Amy Johnson, Donovan’s brand manager “The ever popular flavours of ‘Milk Chocolate Turkish Delight’ and ‘Dark Chocolate Ginger’ were added to the pouch range, which are perfect for sharing, if you have any leftover,” says Amy Johnson, brand manager. She adds: “The one pound box range of dark chocolate ginger, milk chocolate Turkish delight, double chocolate fudge and dark chocolate strawberries had a makeover for Christmas 2012, which attributed to 157% growth for this range*. The selections box also had a makeover for Christmas, which involved a specially developed range of gourmet pralines and ganaches.” Commenting on new consumer trends, Johnson says: “In the chocolate category, premium stands out. Donovans chocolates are an accessible, yet premium product. We have found that in tough economic times, a premium product can be justified as an affordable indulgence, and consumers generally want to buy premium when shopping for their chocolate fix. “The Donovans brand also fits with the current trends of locally 32

FMCG march 2013

made, craft products. Proudly made in the Waikato – the heart of the New Zealand dairy country, Donovans chocolates are lovingly crafted using Swiss technology mixed with a good dose of Kiwi ingenuity. The results are the finest chocolate combined with innovative and exciting flavours that will be sure to please chocolate lovers and the adventurous alike. “Fair trade and palm-oil-free chocolate are trends that are commonly talked about in regards to chocolate manufacturing. Prolife’s company values of integrity, ethics and food quality filter down to our brands. Consumers can trust that Donovans only uses the best ingredients that are ethically sourced from reputable suppliers where respecting human rights and business ethics is fundamental to their way of working. Our products are crafted from the best quality ingredients, which means that palm oil is not used in any of our products,” explains Johnson. * Prolife Ex-Warehouse Sales Quarter to 31/12/2012

Lindt Ken Davis, senior business manager Brandlines, says that “Lindt Chocolate continues to add value and profitability to the chocolate categories and is growing ahead of the market as consumers trade up to premium chocolate (Lindt Blocks growth is 15.3% MAT in TKA (Aztec) 3.2.13 and Lindt Boxed growth is 9.5% MAT in TKA (Aztec) 3.2.13).” “Lindt blocks once again lead the market with innovation with the ‘new’ Dark Excellence ‘Strawberry’ and ‘Coconut’ blocks, which are per-

chocolate & confec ti one r y

forming well and will drive further growth within the premium blocks category. Mainstream recipes are designed to encourage new consumers and target Excellence devotees to expand their repertoire within the Excellence Dark range. Also look out for new and exciting Excellence innovations later in the year.” He adds: “In boxed chocolate the Lindt Lindor range has grown at 15.8% MAT, driven by the Lindor Bags 125g range with a staggering 223% growth in TKA MAT. Also Lindor had a strong TVC campaign during the Christmas season, which increased consumer demand. The Lindor range has the same delectably smooth Lindor balls with the smooth melting centres, which appear to be melting NZ palates as well.”

Richfields In 2012, Richfields celebrated 20 years of making quality chocolate for the increasingly discerning New Zealand palate. This year promises to bring some exciting new developments for Richfields Chocolate with a number of new projects underway, reveals Kylee Geary, sales &

marketing manager. She says: “Retail sales under the Richfields brand – predominantly the No Added Sugar and Dark (70%) Chocolate ranges have seen steady growth. Food intolerance is a real and growing consumer concern, so all Richfields Chocolate is made gluten free, and the Dark range is also lactose free. Along with continuing trends of flavour innovation and challenging the norm, this creates a significant amount of on-going support for these brands. “Having extensive production capability has drawn opportunities from the private label sector and Richfields is excited to be working with a number of chocolate brand owners on their product launches, including a new organic range,” says Geary. Richfields is also a large player in the domestic Easter market, providing a range of hollow and boxed products. Geary comments: “Sales for Easter 2013 have increased markedly on previous years and the expectation is that we will continue to see year on year growth in this channel, with new lines planned for 2014.”

Wilsons Wilsons represent a number of brands in the chocolate and confectionery segment, including Guylian, Hershey’s and more recently Jelly Belly gourmet Jelly Beans. David Cunningham, business manager Confectionery told FMCG: “We have had a busy year with a number of new lines launched across all the brands, but the recent activity around the Jelly Belly range has been intense. Over the past couple of years we have introduced New Zealand to gourmet Jelly Beans, initially as seasonal lines, but the demand has been so strong we have expanded into everyday lines such as the new 100g hangsell bags. This is a great range offering re-sealable bags perfect for consumers to use as a sharing bag or as a personal indulgence. Jelly Belly is the original gourmet Jelly Bean,

Meet the latest addition to the

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Treat your customers with the new zesty Mentos ﬂavour while increasing your sales! march 2013 FMCG 33 Contact your Brandlines representative for more information.

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with a massive following around the world due to the real to life flavours and the huge range of products. The range is gluten free and offers consumers choices of individual flavours such as buttered popcorn or Kiwifruit, to Sunkist branded orange slices and fruit gems, to chocolate dipped Jelly Belly beans, right through to a specially developed, functional sport bean range. â&#x20AC;&#x153;In the chocolate segment we have seen exceptional growth in the Hershey kisses range with 18.6 % growth MAT (Aztec to 30.12.2012). This has been driven from strong in store support and regular consumer promotions such as the â&#x20AC;&#x2DC;Win a ringâ&#x20AC;&#x2122; promotion and the â&#x20AC;&#x2DC;Win a trip to Parisâ&#x20AC;&#x2122; activity in 2012. Hersheyâ&#x20AC;&#x2122;s are committed to continuing this in market support as we look to work with retailers to deliver further growth.

â&#x20AC;&#x153;The Guylian range continues to show growth and has had another strong Christmas period as consumers know the Seashell range and recognise the product quality, helping to keep this brand as the worldâ&#x20AC;&#x2122;s favourite Belgium chocolate. â&#x20AC;&#x153;Overall we have seen strong inmarket activity, especially around pricing and promotional activity. This has resulted in consumers often seeing multiple brands on promotion at the same time. If all the brands are on promotion, this has resulted in consumers not having to select their product based solely on price and they will resort back to considering value and the brands. Even in these very competitive times, consumers like to purchase brands which they relate to, or which they aspire to.This trend has seen some priced based brands find it difficult to maintain consistent sales as consumers return to brands they know and love.â&#x20AC;? Commenting on his recent trip to the ISM trade fair in Germany, Cunningham says: â&#x20AC;&#x153;During our visit we noticed there was limited innovation, rather brands were looking to innovate through packaging and new graphics.This appeared to reflect that many manufacturers were looking to consolidate their range and consoli-

date the products consumers already know and recognise.â&#x20AC;?

Whittakerâ&#x20AC;&#x2122;s Chocolate is a small indulgence and consumers are always looking for innovation in the market. â&#x20AC;&#x153;Our Mini Slabs provide a small bite-sized treat in popular Whittakerâ&#x20AC;&#x2122;s flavours that are designed for sharing with family and friends, and are ideal for handbag and lunch box treats,â&#x20AC;? says Jasmine Griffin, brand manager. Griffin explains: â&#x20AC;&#x153;We entered the share pack market in March 2011 with an innovative new product, Mini Slabs. We now have nine delicious flavours in our range from our iconic Peanut Mini Slab to our Hokey Pokey and Berry & Biscuit varieties. The share pack market appeared to have little recent innovation and since our Mini Slab range was introduced the market has grown by 11.6% (latest MAT 3.2.13 Aztec Data). â&#x20AC;&#x153;Whittakerâ&#x20AC;&#x2122;s have obtained a value share of 31.7% (latest QTR) in this market (Aztec data 3.2.13), which we feel is the result of a successful new product range. She adds: â&#x20AC;&#x153;We are excited to be launching three new delicious flavours this March in our mini slab range, Almond & Cranberry, White

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FMCG march 2013

chocolate & confec ti one r y

Raspberry and Cornflake.The Almond & Cranberry flavour is completely new for Whittaker’s and is made with our 50% dark chocolate to appeal to our health conscious consumers. The cornflake flavour is making a comeback, in mini slab form. Made with crunchy cornflake pieces and our extra smooth creamy milk chocolate, the texture of this product is sure to delight anyone that tries it. Following on from the success of our White Raspberry block launch in October 2012, a mini slab in this flavour is also a perfect addition to the range.”

Wrigley Commenting on consumer trends, Kate Morton, country manager, Wrigley New Zealand says: “Visibility is key. More check out options offer retailers the opportunities to gain additional impulsive sales. With its highly impulsive nature and its small footprint on shelf, gum and mints provide an exceptional return on the investment that retailer’s make in checkout space. “Premiumisation via innovation: New products that premiumise the category and recruit new chewers to the gum category are important to continue momentum and growth. Shoppers are looking for new ideas

“Visibility is key. More check out options offer retailers the opportunities to gain additional impulsive sales.” Kate Morton, country manager, Wrigley New Zealand in this segment and historically innovation has created strong increases in shopper penetration,” she explains. The Wrigley portfolio includes gum (Extra, Extra Active, 5 gum, Airwaves, Eclipse Ice, PK, Juicy Fruit, Hubba Bubba); mints (Eclipse, Eclipse Chewy); and confectionery (Skittles, Starburst). Morton says: “Wrigley continues to support category growth with the launch of Extra Active Berry and Extra Active Watermelon in April 2012. These fruit-flavoured extensions allowed Extra Active to achieve 15.9% share of gum market, growing 55.7% in the latest Quarter*.” Among recent launches were also Eclipse Chewy – Spearmint, Peppermint, Fruit Trio. Morton explains: “In August 2012, Wrigley launched Eclipse Chewy Mints, which became the biggest new nonchocolate confectionery sub-brand

in 2012 worth almost $1.6 million in Total Key Accounts. Wrigley set out to double the chewable mints segment with the launch of Eclipse Chewy Mints, but we succeeded in tripling it**.” On Valentine’s Day, Wrigley launched its latest campaign for Extra, which encourages consumers to “Break Up With Clingy Food”. The new campaign puts the food creatures opposite Antonio Banderas to communicate the benefits of chewing sugar free gum to keep teeth healthy and reminds consumers to remember to “EAT. DRINK. CHEW”. Morton adds: “This month 5 Gum releases new longer-lasting flavours - Cobalt (Peppermint) and Electro (Spearmint), and also is relaunching 5 Gum Pulse (Tropical).” * Aztec Total Key Accounts QTR data to 27/01/13 ** Aztec Total Key Accounts MAT 27/01/13

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march 2013 FMCG

FNZ Brands Limited becomes DKSH Services New Zealand Ltd

n the February 1, 2013, FNZ Brands became DKSH Services New Zealand Limited. “The name change reflects the affiliation to our parent, the global DKSH Group. DKSH is the No. 1 Market Expansion Services provider with a focus on Asia, and we’re very pleased with our new brand affiliation,” says the General Manager, Graeme Locke. Who are DKSH Services New Zealand? With the parent company headquarters in Switzerland, DKSH Services New Zealand Limited provides customized solutions with a focus on innovation for both established global brands

FMCG march 2013

and undiscovered newcomers to the market. Globally, DKSH Business Line FMCG serves over 300,000 retail outlets and operates 61 distribution centres in the region. It employs around 13,400 FMCG specialists in 550 locations in 23 countries including Australia, New Zealand, Cambodia, China, Hong Kong, Japan, South Korea, Laos, Malaysia, Brunei, Myanmar, Singapore, Taiwan, Thailand, Vietnam, Switzerland and Germany. Closer to home, DKSH Services New Zealand Limited market distributes a portfolio of recognized brands, drawing on our strong cooperation with Ferrero to offer internationally

recognized brands such as Tic Tac, Nutella, Kinder and Rocher, as well partnering with Waterwheel, Fillipo Berio Olive Oil, Water Buddies and the Caredent Oral Care range of products. For suppliers, DKSH Services New Zealand Limited offers services uniquely tailored for your business from across the complete value chain; from research and analysis to sales and marketing as well as logistics and distribution to after sales service. For the retailer our focus is simple, driving growth through innovation. Services at a glance include: • Market Research

p rof ile

“DKSH is the No. 1 Market Expansion Services provider with a focus on Asia, and we’re very pleased with our new brand affiliation” Graeme Locke General Manager DKSH Services New Zealand Ltd • Marketing Consulting • Product Management • Brand Management • Trade Marketing • Category Management Services • Retail Management • Sales Management • Key Account and Trade Relations Management • Merchandising and Field Marketing • Logistics and Distribution • Finance Support Services “Since we joined the DKSH Group, we have been able to deliver significantly greater benefit to our partners through tapping into DKSH’s expertise in not only systems investment and sales capability but also through

Jane Hoy, Sales Executive.

leveraging their relationships. As a result, we offer opportunities through our global network and connections not often seen within a distributor partner to our suppliers. With a passionate and experienced team of over 70 staff, dedicated to creating sustaina-

ble, profitable growth in the retail sector, we are well poised to deliver strong results in the trade to benefit our suppliers both now and well into the future. We welcome the opportunity to review and discuss your business with a view to unlocking its full potential.” says Graeme.

Contact: DKSH Services New Zealand Limited Unit A3, 72 Apollo Drive, Mairangi Bay, Auckland Phone: 09 475 0235 www.dksh.co.nz

march 2013 FMCG

cate go r y c h e c k

Innovation in

Key suppliers explain new trends and campaigns in a highly competitive category.

andee is New Zealand’s market leading paper towel with 31.7% value share (Aztec MAT TO 20/1/13), says Heather Greaves, marketing manager (Toilet, Towel and Baby). Handee is 100% NZ Made from paper made in SCA’s Kawerau factory and converted into Handee Paper Towel at SCA’s Te Rapa factory. Handee is available in a range of pack sizes in both white and prints, 2’s, 3’s. Handee also has a ‘Long Roll’ which has 50% more sheets than the standard Handee roll. The Long Roll continues to grow in popularity as consumers appreciate the convenience of having a longer roll in the pantry, says Greaves. “Handee’s well established ‘Thick, Strong and Thirsty’ positioning continues to resonate with consumers as they use the product to mop up spills in the kitchen and around the house, absorb cooking oils and clean household surfaces. “Handee has an exciting marketing programme this year with new products, advertising and packaging developments, all sure to excite the consumer and remind them of an unsung hero in the home,” she says. She adds: “SCA also has two main

brands in the toilet paper segment, Purex (15.4% value share MAT 3/2/13) and Sorbent (9.2% value share MAT 3/2/13). The NZ Toilet Tissue market is worth $163m, but has a limited growth due to high penetration rates (99%) and small population growth (Statistics NZ +0.9% 2012 and +0.6% CAGR 10 years).” “The toilet paper category is highly competitive with four branded manufacturers and two private label retailers aggressively fighting for share and putting pressure on profitability,” comments Greaves. She finds there are two dominant consumer dynamics occurring:Trading up to larger pack sizes and switching to longer rolls. “Purex Mega, which is more than double a regular Purex roll, has been a stand out performer in the Purex range achieving double digit growth each year since launch in 2009. With four SKUs across both white and décor, consumers love the convenience of not having to change the roll as often and at the same time making a positive difference to our environment. Purex Mega 4’s uses 20% less packaging and reduces landfill waste by up to 10% compared with regular Purex,” she says. Purex is 100% NZ Made with the paper manufactured in Kawerau and then converted into toilet rolls at the SCA plant in Te Rapa, Hamilton. Purex has been made in New Zealand since 1954. Greaves says: “Purex is committed to caring for the environment, as are our consumers, with both FSC and Environmental Choice Endorsement,” she says.

She adds: “Purex has a wide range of products to suit everyone’s needs, including traditional white paper in a number of pack sizes, prints, hypoallergenic and the mega long range. Purex will be back on TV this April with NZ’s favourite Rolly dog and featuring Purex Mega.”

ABC Tissue ABC Tissue is a locally owned manufacturer that occupies a unique position in the paper products category. The company’s success is founded on two brands that stand apart in their respective segments.“Earthcare is a 100% recycled product for the mid-market, while Quilton offers exceptional softness and luxury in the premium segment. ABC Tissue also competes in the price segment with Savers,” says Phillip Ta, managing director. Innovation has been a driver for ABC ever since its establishment in 1995. Last year, Quilton launched single-dispense paper towels in a unique elevator box – a first on the New Zealand market. Quilton and Earthcare both launched double length toilet rolls, while Earthcare also launched double length paper towels. Earthcare and Quilton have contributed significantly to the growth in the toilet tissue double length category, which has grown by nearly $1.5 million in the last twelve months. (Aztec Scan Data, Jan 2013), says Ta. He is upbeat about the company’s prospects in 2013. This year, an additional 15,000 square metre facility will be completed in Wiri, Manukau City. Also, new packaging will be introduced for both Quilton and Earthcare toilet tissue. The company will continue to meet the

paper produc ts

paper products growing demand for larger formats in toilet tissue (e.g. 18s and 24s), along with further introductions of double length rolls. Ta also says consumers are demanding greater environmental responsibility from manufacturers. “ABC now owns one of the largest Australasia’s tissue recycling mills for making 100% recycled tissue. ABC products carry either PEFC or FSC certification,” he says.

Kimberly-Clark NZ Kimberly-Clark New Zealand, supplies Viva Paper Towel and Cleaning

Wipes, Kleenex Cottonelle Bath Tissue and Moist Flushable Wipes, as well as Kleenex Facial Tissues and Wet Wipes. Grant Hartley, head of marketing says: “Kleenex Cottonelle Bath Tissue has the highest branded share in the market at 14.5% value share. The Kleenex brand is the market leader in facial tissue with 42% value share and is growing ahead of the market at 2.2% MAT vs the category at 0.5% (Aztec to 13/01/13).” Kimberly-Clark NZ has relaunched Kleenex Cottonelle Bath Tissue in September last year. The

Erratum

THE BREAKDOWN

Due to a technical error, our February 2013 issue featured four incorrect entries in the text box ‘The Breakdown’ on page 27. The correct Nielsen statistics are shown below.

Current MAT to 27 January 2013

The Breakdown Current MAT to 30 December 2012 Bread category T. Other: $1.911m Value % Chg vs YA N/A T. Other Flavour: $0.133m Value % Chg vs YA 118.1 T. Light Grain: $129.890m Value % Chg vs YA -1.1 T. White Bread: $117.153m Value % Chg vs YA -5.0

Total Stationery: $14.442m Value % Chg vs YA -8.7 T. Envelopes: $0.632m Value % Chg vs YA -13.1 T. Other Stationery: $3.032m Value % Chg vs YA -3.2 T. Self-Adhesive Tape: $2.770m Value % Chg vs YA -3.6 T. Writing Paper: $2.461m Value % Chg vs YA -7.8 Total Facial Tissues: $37.319m Value % Chg vs YA -2.5 T. Convenience: $5.146m Value % Chg vs YA 24.8 T. Every Day: $18.171m Value % Chg vs YA 1.3 T. Special Care: $14.002m Value % Chg vs YA -13.7

re-launched product is a 25% stronger product and just as soft. Among new products are Kleenex Facial Tissues Jumbo 250s and Kleenex Cool Touch Facial Tissues 50s. Hartley says: “The re-launch of Kleenex Cottonelle Bath Tissue has delivered strong sales results in the last three months. The 2013 Kleenex Cottonelle Paper Dresses campaign in conjunction with Fashion Tech has delivered favourable brand health results. Kleenex Facial tissues have also performed well in the last year due to our in and out of season strategy.”

Total Toilet Tissues: $163.061m Value % Chg vs YA -0.5 T. 1-2s: $3.990m Value % Chg vs YA 436.8 T. 10s/12s: $0.027m Value % Chg vs YA -9.3 T. 12s: $70.364m Value % Chg vs YA -3.1 T. 12s+: $0.403m Value % Chg vs YA -30.4 T. 13s+: $42.997m Value % Chg vs YA 8.9 T. 4s: $25.899m Value % Chg vs YA -9.0 T. 6s: $6.478m Value % Chg vs YA -4.2 T. 8-11s: $9.618m Value % Chg vs YA -32.0

* Nielsen New Zealand ScanTrack (Databank)

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Health & Beauty Aisle Many consumers now include over the counter (otc) medicines and supplements on their regular supermarket shopping list. Key suppliers shared their news and NPD in this category with FMCG.

he popular analgesics Nurofen and Nuromol are supplied by Reckitt Benckiser in New Zealand. Nuromol continues to grow the category since the September 2011 launch, says Pim Bolyn, Nurofen brand manager.

Bolyn explains: â&#x20AC;&#x153;Nurofen with the launch of Nuromol has been the key growth driver for analgesics contributing $1.4m in the last year, with the category now growing at 4.3% (Nielsen MAT 27.01.2013). â&#x20AC;&#x153;As market leader, Nurofen is committed to building on this

growth by increasing its investment in the category and expanding its offering for grocery consumers. With packs of 20 or more tablets making up 68% of volume sales, Nurofen is excited to announce the launch of a new Nuromol 20 pack, encouraging consumers to trade up into a higher

New Topical Gel range by Nurofen, analgesics category leader. Available in 50g & convenient 2x50g pack

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FMCG march 2013

Always read the label, use only as directed, incorrect use could be harmful, if symptoms persist contact your health professional, Reckitt Benckiser, Auckland. TAPS DA 4712MR

otc & supplemen ts THE BREAKDOWN Current MAT to 27 January 2013 Total Patented Medicines and Remedies: $72.543m Value % Chg vs YA 5.4 T. Antacid & Stomach Remedies: $6.597m Value % Chg vs YA 6.4 T. Anti-Diarrhoeals: $0.143m Value % Chg vs YA 93,388.5 T. Anti-Itch/Emollients & Protectives: $0.662m Value % Chg vs YA 31.4 T. Anti-Viral Applications $0.960m Value % Chg vs YA -4.9

value offering.” “Nurofen will also further develop its offering for consumers in the

T. Antihistamines: $0.547m Value % Chg vs YA 36.1 T. Antiseptic Liquids: $1.889m Value % Chg vs YA -6.7 T. Eye Medications: $0.898m Value % Chg vs YA 1.4 T. First Aid: $9.228m Value % Chg vs YA 1.5 T. Foot Care: $1.312m Value % Chg vs YA 41.9 T. Insect Repellents: $1.922m Value % Chg vs YA -7.8 T. Laxatives: $5.043m Value % Chg vs YA 7.3 T. Liniments: $4.219m Value % Chg vs YA 8.2

T. Mouth & Gum Preparations: $0.694m Value % Chg vs YA 11.6 T. Oral Analgesics: $33.362m Value % Chg vs YA 4.3 T. Personal Antiseptics: $2.296m Value % Chg vs YA 5.0 T. Smoking Cessation: $1.715m Value % Chg vs YA 22.4 * Nielsen New Zealand ScanTrack (Databank)

topical gel segment with the launch of a new 2x50 gram trade up pack, and for the first time invest in above

Superior Pain Relief Stronger for Longer* Nuromol contributed $1.4m† to analgesics in 2012. Build on this success with the NEW Nuromol 20 pack available April 1st 2013. For more information contact your Reckitt Benckiser Sales Representative.

FROM THE MAKERS OF NUROFEN *vs. Paracetamol in dental pain studies. 1. Mehlisch D et al. Clinical Therapeutics 2010;32(6):1033-49 2. Daniels S et al. Pain 2011;152:632-42

march 2013 FMCG

†T.Smkts MAT Nielsen 27.01.2013. Each tablet contains Ibuprofen 200mg and Paracetamol 500mg. Medicines have benefits and some may have risks. Always read the label carefully and use only as directed. Incorrect use could be harmful. Do not use if you have a stomach ulcer. If symptoms persist or side effects develop contact a healthcare professional. Reckitt Benckiser, Auckland. 0508 731 234. TAPS DA 4712MR

cate go r y c h e c k the line for Nurofen gels to help capture additional pain occasions in the category.” “Nurofen is also launching a new Sinus Pain 12-pack for the cold and flu season, supporting the category with a well-known and trusted pain relief brand, where efficacy is a key consumer driver for purchase. All new products will be available from April 1, 2013.” Bolyn comments:“We continue to see consumers become more comfortable with self-selecting analgesics in grocery as part of their regular shopping occasions. Innovation and encouraging consumers to trade up into higher value products will continue to be important drivers for growth in the category.”

Phloe Phloe Bowel Health products are sold in the laxative section within OTC medicines. Kylie Jillings, marketing manager, Vital Foods, told FMCG: “Phloe is illustrating strong value growth at over 15% (MAT to 27/01/13, Nielsen), helping to drive the total laxative category growth to 10% MAT. Phloe Chewable Tablets, which were launched in 2011, have illustrated incremental growth to the brand, confirming that alternative formats are important to meet individual consumer needs. Chewable Tablets are especially important to the brand, as they offer an alternative to users who are unable, or would

“Consumers are taking their health into their own hands, proactively making lifestyle and diet choices to enact a preventative approach to their health.” Kylie Jillings, marketing manager, Vital Foods 42

FMCG march 2013

prefer not to, take a capsule – perfect for children over five years of age.” She adds: “Consumers are taking their health into their own hands, proactively making lifestyle and diet choices to enact a preventative approach to their health. This modification of the consumers’ mind-set has led to the growth of OTC and health supplement categories, and in turn, led to high performance of products that embrace this trend. Phloe is well placed to fit with this health trend, offering a natural gentle way to maintain digestive health.”

EBOS Healthcare Karen Kelly, national retail manager, EBOS Healthcare, also confirms that there is a growing trend of consumers choosing to self-medicate minor ailments, based on being able to source information on OTC medicines. She says “there is more information available to consumers today than ever before enabling them to make informed choices about their health”. EBOS has Deep Heat, Ice, Nature’s Kiss Anti-Flamme and Arnica products in NZ supermarkets. Kelly explains: “The Nature’s Kiss Anti-Flamme range is made with natural ingredients – it really works to soothe strained muscles, stiff joints, bumps, bruises and common sport injuries. Consumers are continuing to look to supermarkets to purchase such products, which offer them convenience and value for money.” “The Deep Heat brand is growing at +9.7% with Nature’s Kiss AntiFlamme growing at +16.6%. Under the Nature’s Kiss brand umbrella sits Arnica, which is the best-selling arnica product in supermarkets with 4% of the liniment categories sales and showing MAT growth of +356%. Arnica is a must have for the first aid kit and is ideal for the whole family, including infants, to soothe bumps and bruises. It has calendula oil which is known for its soothing effect on irritated tissue plus helps improve circulation,” she says Source: Aztec, Mat to 27/1/2013.

Healtheries Healtheries has been simplifying natural health for Kiwis for over a century and is driving supplement category sales by making them easier to find, choose and use. Healtheries started in New Zealand back in 1904, with two Kiwi flour millers. They built a business dedicated to the belief that the natural, healthy goodness of stoneground flours should be easily available to everyone. Today, Healtheries is still driven by the same aim: making natural health easy, with wholesome foods and quality supplements. Angela Monk, senior brand manager, explains: “Healtheries is New Zealand’s most trusted dietary supplement brand with a range of products developed specifically for Kiwi lifestyles. We offer a range of quality, affordable vitamin, mineral, garlic and herbal supplements. Healtheries is owned by Vitaco, which has manufacturing sites in East Tamaki and Avondale and employs 450 healthpassionate people. “To simplify health, we started by listening. Healtheries supplements are the number one brand in dietary supplements, with a 42% share of the grocery market. But brands can only achieve that kind of success by seeking regular customer feedback, and evolving in response to it,” she says. “That’s why we undertook extensive research, using surveys, focus group and in-store visits, to find out exactly what our customers thought of the Healtheries supplement brand and packaging and what they wanted. The clear response was that while

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Kiwi consumers loved Healtheries supplements, it was time for us to modernise our packaging. “Even NZ’s most trusted brand can still make improvements. Research results showed us that the different sizes and colours of bottles confused consumers.We learned that some customers looked for particular ingredients, while others looked for help with specific conditions, so labels needed to communicate both types of information. And we discovered that some customers found some colours harder to read and bottles hard to open. “So here’s how we innovated in response to feedback. We started by modernising the look of our entire range with white bottles that featured easy-to-open caps. Then we designed labels colour-coded by segment to ensure confusion-free navigation. We reduced the number of words on the front of packs and used black-on-white text where-ever possible to make information more

FMCG march 2013

readable. As consumers like to see the size of the capsule/tablet before purchasing, images showing this were added to key packs. Strengtho-metres were added to the front of packs on key products to aid quick navigation in complicated ranges such as Vitamin C.” The result: supplements that make shopping simpler for customers. “At Vitaco, we know that you can’t maintain a number one brand without constantly innovating to meet consumers’ needs,” says Monk. “This bright, new look for our range is our way of investing in that kind of innovation. Not only will it simplify supplement shopping for customers, it will increase sales for you, and drive growth across the entire dietary supplements category,” she says.

Blackmores You’ve heard of ‘super foods’… but Blackmores has just introduced a ‘super multi vitamin’ brimming with

every vitamin, mineral, antioxidant and enzyme needed to help you get the most out of your day, a spokesperson told FMCG. The new Alive! Multivitamins apparently contain the added boost of no less than 20 fruit and vegetable powders. With a range specifically designed for women, men, women over 50, and men over 50 – the new Alive! Multivitamins have been created for those with busy and demanding lifestyles. Alive! Women’s Multivitamins are specifically designed to provide support for stress, metabolism, immunity and include essential antioxidants to support skin health. Alive! Women’s 50+ Multivitamin provides support for bones, muscle, cardiovascular and metabolism health and also contains important antioxidants for eye health. Alive! Men’s Multivitamin also provides support for stress, brain health and contains zinc and selenium, essential for sperm health, while Alive! Men’s 50+ Multivitamin also provides support for eye and cardiovascular health, and contains zinc, which plays an important role in prostate function. The Alive! Multivitamin Range (RRP $30.95 for 60 tablets) is now available in NZ supermarkets.

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Healtheries has launched Kidscare Omega Smart Bursts – formulated by NZ naturopaths for growing NZ children. They are perfect for children who don’t like to eat fish. Rich in essential DHA, they are ideal for supporting children’s learning, concentration, memory and brain development. They also contain Iodine for healthy brain development and Vitamin D3 to support immunity, healthy bones and teeth. For more information or naturopathic advice contact Vitaco Naturopaths on 0800 848 254 or visit www.healtheries.co.nz.

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Alexandra’s Dukkah Alexandra’s Dukkah is a delicious blend of premium chopped nuts, roasted sesame seed and freshly ground spices. Use as a dip with bread and fine olive oil, or in cooking with meat, fish, vegetables and soups.

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g rocer y b us ine ss Countdown arrives in Mt Roskill Countdown unveiled a new Auckland store in February, located on Stoddard Road in Mt Roskill, a rapidly developing area for both retailers and residents. The 3600 square metre supermarket was officially opened by local MP, Phil Goff together with Mike Uri, Countdown Mt Roskill store manager, Dave Chambers, MD Countdown Supermarkets and Tim Neale, pharmacist & pharmacy manager. The supermarket was the first in Auckland to feature the new

Countdown Pharmacy offering, with a pharmacy conveniently located within the supermarket. Customers will be able to purchase prescription and pharmacy-only products from a qualified pharmacist, and take advantage of convenient supermarket trading hours and competitive pricing. Uri says: “Mt Roskill is really growing and developing, so both residents and workers can look forward to having a fantastic new supermarket featuring Countdown’s range of fresh food and great value, as well as a unique and convenient pharmacy – it will truly be a one-stop-shop.” The store will employ 160 people and includes a large fullservice bakery baking fresh goods daily, as well as an expansive produce section, butchery department, service deli and seafood department. It will also feature a walk-in beer chiller, a Lotto outlet and a large car park with 144 covered and 86 uncovered spaces. In addition to eight checkouts and four express checkouts, the store will also include six self-serve checkouts. Countdown Mt Roskill incorporates many of the design elements of Countdown’s new generation stores, and has been carefully designed and constructed to reduce its impact on the environment. The store will also offer online shopping. Tech-savvy customers can also take advantage of the free Countdown grocery shopping app , which combines a digital shopping list with barcode scanning capability, prices, recipes and an online shopping function. Countdown online, including Click and Collect, is available at www.countdown.co.nz. The store’s regular trading hours will be Monday through to Sunday, 7am to 10pm, and the pharmacy hours are 9am to 8pm. l

Passing of a fine man Noel Hall, founding director of Baker Hall NZ, passed away on February 20, after suffering a stroke at 98 years of age. Noel’s son, Gerard Hall, was the other director in the iconic company until the business was sold to Hansells NZ in 2005. The brand ‘Baker Halls Original’ first entered the market in NZ in 1987, after starting out in the Baker Hall family’s home,

FMCG MARCH 2013

but it was later sold to Coca Cola Amatil NZ, who now produce the product branded Baker Halls. “It’s the end of an era and the passing of a fine man,” says Gerard, who managed the company from 1988 to 2005. According to Gerard, Noel kept up to date with the brand and drank Lemon & Barley until the very end. l

Noel Hall, founding director of Baker Hall NZ.

g rocer y busi n ess First Countdown store for Tawa Tawa MP Peter Dunne (pictured) cut the ribbon to open the town’s very first Countdown store on February 12. The 3115 square metre store is located at 3 Main Road, Tawa and store manager Melanie Rae says the supermarket will be a welcome addition to the area. It is conveniently located next to the Johnsonville Porirua Motorway for easy access. “It’s the first Countdown supermarket to be built in Tawa, and it’s been highly anticipated by the community,” says Rae. The new store includes a large full-service bakery baking fresh goods daily, as well as an expansive produce section, butchery department, service deli and seafood department. It also offers a large range of bulk-food items and features a walk-in beer chiller, a Lotto outlet and a large covered car park with more than 200 spaces. In addition to eight checkouts and four express checkouts, the store also includes five self-serve checkouts so customers can scan and pay for their shopping themselves. Countdown Tawa has employed 135 people, with around 80% of the new team living locally. The store has been carefully designed and constructed to reduce its impact on the environment. It features energy efficient CO2 refrigeration plant systems, night blinds on refrigerated cabinets, sliding covers on freezers, heat reclaim off the refrigeration coils and energy efficient lighting to help minimise the store’s carbon footprint. The store will also offer online shopping. Customers can opt for delivery, or order online and collect the items themselves from the customer service desk in-store using the new Click and Collect service. Tech-savvy customers can take advantage of the free Countdown grocery shopping app, which combines a digital shopping list with barcode scanning capability, prices, recipes and an online shopping function. Countdown Tawa will be open Monday through to Sunday from 7am to 10pm. l

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g rocer y b us ine ss Buffett buys Heinz Cola, WalMart, Tesco and Kraft. Buffett, who is 82 years of age, commented: “This is my kind of deal. I’ve got a file on Heinz that goes back to 1980.” Heinz announced the takeover in February, stating it had unanimous support from the H.J. Heinz board. The terms give Heinz shareholders US$72.50 in cash for each share of common stock they own, in a transaction valued at US$28 billion, including the assumption of Heinz’s outstanding debt. The price represents a 20% premium to Heinz’s closing share price of US$60.48 on February 13, 2013, a 19% premium to Heinz’s all-time high share price, a 23% premium to the 90-day average Heinz share price and a 30% premium to the one-year average share price. l

Food giant H.J. Heinz, a major player in both Australia and New Zealand, has been bought by Warren Buffett’s Berkshire Capital and 3G Capital in a deal worth US$28 billion. Buffett, who is famous for his down-home approach to investment, is believed to be the second richest man in the US. He likes buying well-known consumer brands unlikely to be derailed by the digital age and has linked up with the world’s 69th richest man, Jorge Paulo Lemann of Brazil, to pull off the biggest takeover the food business has seen. Heinz, which sells more than 650 million bottles of ketchup a year as well as billions of single-serve sachets, will now become part of Buffett’s sprawling investment portfolio, covering everything from insurance to underwear and stakes in Coca

Entries open for NZ International Business Awards be recognised as a stand-out international company. “It’s important for businesses to take time out and reflect on their international growth journeys, and the awards are an opportunity to do this. They are also an opportunity to celebrate achievements and honour the people who have helped drive international successes, and are a fantastic vehicle for forging valuable new relationships.” The Awards judges will be looking for companies which are showing courage, drive and innovation to build successful international businesses. Judges will want to see how businesses are taking an idea to market, how they have overcome obstacles to get to where they are today, and how they are nurturing the business and preparing for future growth. Winners will be announced at a black tie ceremony on September 26, 2013. For more information and to enter the New Zealand International Business Awards, visit www.nzte.govt.nz/awards. l

The 2013 New Zealand International Business Awards are under way again, designed to recognise New Zealand businesses succeeding on the world stage. Previous winners in the food and beverage sector have included Pitango, Emerald Foods and Westland Milk Products. The Awards programme, run by New Zealand Trade and Enterprise (NZTE) with support from Strategic Partner ANZ, celebrates the passion and vision of New Zealand’s most outstanding global businesses and business leaders – and benchmark the contribution they make to growing New Zealand’s economy. A $100,000 Supreme Award is presented to an overall winner who stands out across the Awards categories. In addition, each general category winner earns a place on the 2014 Better by Design CEO Study Tour. NZTE chief executive Peter Chrisp says entering the New Zealand International Business Awards is more than just an opportunity to

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Get set for your first exhibition Dona White outlines five easy steps to success.

f you haven’t done it before, how do you go from zero to exhibition hero? How do you choose which exhibition is right for your business? No problem. Lots of companies have successfully crossed this bridge and you can too, one step at a time. 1. Trade show or consumer show? Start by selecting what kind of exhibition suits your business best. Your business may sell to a mix of trade customers and the general public, so think about the strengths of trade versus consumer exhibitions. For instance, trade show visitors buy to on-sell things to their customers, whereas consumer show visitors buy to consume things themselves. So at trade shows you’re looking to take orders that you’ll fulfil after the show, whereas at consumer shows the aim is generally to make as many direct sales as possible and lay the foundations for long-term brand loyalty. And although audiences for trade shows tend to be smaller, they are more heavily stacked with high net worth individuals looking to buy. 2. How many hot prospects? If you’ve got more than one exhibition to choose from, a handy yardstick is to calculate the number of hot prospects you’re likely to encounter at each one. First estimate ‘Audience Interest’ by multiplying the number of visitors that attended the last show by a percentage that represents how focused those visitors

were. For instance, one show I organise, the Baby Show, attracted 13,000 people in 2012, but very few were tyre-kickers so I’d use a percentage of 90% for that one. Next estimate ‘Product Interest’ – the percentage of visitors likely to be interested in your specific product or service. If you’re not sure, just use the average, which is 16%. Then multiply ‘Audience Interest’ by ‘Product Interest’ to get your ‘Potential Audience’. Using my Baby Show example: Audience Interest = 13,000 x 90% = 11,700, Product Interest = 11,700 x 16% = 1872 hot prospects. 3. How will the show be promoted? Ask the organisers how up-to-date their visitor databases are and what promotional communications they’ll be sending to those databases in the lead up to the show. Ask for the organisers’ advertising and PR media lists and compare the target audiences of these publications against your target audiences. Find out what special features the organisers are offering to help attract people to the show, such as seminars, demonstration areas, networking functions, etc. Ask what support the event has in place from industry associations. Find out if there are any groups you can join for mutual support or to form a pavilion at the show. 4. Why are you exhibiting? Now you have a clearer idea of which show suits you best, it’s time

to ask yourself some questions and set do-able objectives.Which of your products or services will you showcase? What are their most important features and benefits? And the most important question of all: What do you want to achieve? Sell products? Generate leads? Find new distribution channels? Carry out market research? Launch a new product? Build a database? You can achieve all of these things at a single event – but you’ll have to create a plan. To do that, you’ll need to set some SMART objectives – that is, goals that are Specific, Measureable, Accountable, Realistic, and Time-bound. 5. How will you let people know? Part of your pre-show planning should be assessing the promotional channels available to you and how you’re going to exploit them to ensure maximum visitation to your stand. Put a link on your homepage advertising your stand at the show; send complimentary tickets to your VIP customers; use the show’s own website to leverage your stand; send direct mail to your databases; advertise your involvement in relevant publications; use social networks like Facebook and Twitter; include a story in your newsletter; send out a media release; ask your suppliers to pass the word on – I’m sure you can think of even more.

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. MARCH 2013 FMCG

Maximise your odds for new product success Only one in 10 new products go on to be successful, but the right research and testing can improve chances of success fivefold. Vicki Riggans of Nielsen explains.

illions of dollars are spent developing and launching new products each year, but the reality is only 10% will succeed. While this has been the accepted norm and considered the ‘cost of doing business’, Nielsen’s approach improves the likelihood of new product success by a massive 65% to a 75% success rate.

FMCG march 2013

Based on tracking 600 product launches and testing 20,000 concepts, Nielsen has outlined a 12-step process with specific recommendations on what companies should change before a new product launch in order to increase chances of success. Nielsen’s 12-step process involves measuring the following factors. 1. Distinct Proposition Your product must offer true innovation; it must stand out versus the competition in a substantial way, providing benefit-driven differentiation. 2. Attention Catching No matter how innovative and productive the item is, it needs to be noticed in order to be sold, particularly as the competitive market is more crowded than ever. 3. Message Connection Convey your key selling message in a simple and translatable way. Consumers must understand the essence of what you are or they can’t react to you. 4. Clear Concise Message People will not want to take

too long to read your product’s label or watch an advertisement; therefore, you must create and convey a message that is short, sweet and to the point. 5. Need/Desire Be relevant to consumer needs and/ or wants. This reflects the potential interested universe (i.e. demand) for a product. 6. Advantage Explain why your product will meet the consumer needs or wants in a way other products do not. In a store where a consumer has multiple similar choices, the advantage needs to be as clear and enticing as it can be. 7. Credibility Packaging and adverts can say virtually anything, but a consumer has to believe what they are reading and that the product is worth their money. Where does your credibility come from? Do they trust your brand? Do you provide sufficient reason to trust this new proposition? 8. Acceptable Downsides Virtually every product has its downsides; identify them and make sure that you are ahead of them before the consumer has a chance to point them out to you. Eliminate the downsides to increase the chances of product success. 9. Findability The product can be the most innovative product the world has ever

featu re seen, but unless the consumer can see or find it, they won’t even know. How visible will the product be? Who is your audience and what is the best way to put your product in their line-of-sight? 10. Acceptable Costs The consumer must feel comfortable with the cost of buying and using your product. The cost in this sense can be anything from the actual retail price at which it is listed to the more obscure attributes like a calorie count - something you would only find out after having to look for it. 11. Product Delivery After the consumer is exposed to and even believes your advertising campaign, the product must deliver on its promises. Companies need to take the time to make sure their product will deliver results that exceed consumer’s expectations. 12. Product Loyalty Many companies can and have had

a ‘one-hit-wonder’ product, but in order to sustain the success of the product over a long period of time, companies need product loyalty. Even if the product delivers on its promises in the beginning, complacency will allow your competition to come back. Build loyalty to your product by continuing to stay ahead of the competition.

The bottom line The biggest advantage of the system is gaining an accurate estimate of the product’s chances of success so companies can set action standards. In New Zealand BASES can be utilised by measuring six of 12 success factors. Manufacturers can then understand the likelihood of success or what needs to be improved to make a product launch successful. For further information on Nielsen’s new product development and innovation practice, please email

Vicki Riggans at Vicki.Riggans@ nielsen.com.

About BASES BASES is a division of The Nielsen Company and provides business solutions that help manufacturers achieve growth through successful new product innovation. BASES is known for analytical and forecasting expertise, its extensive database of experience, and for providing global coordination and consistency. BASES offers a targeted range of solutions related to innovation strategy, new product qualification and optimisation, and initiative commercialisation. Vicki Riggans, executive director Marketing Effectiveness Practice, Nielsen New Zealand.

This smile is sustainable. There are many good reasons to work with Abilities Group, like great results, competitive rates and our ongoing commitment to recycling and sustainability. But most importantly, when you outsource to us, you’re giving someone a reason to feel proud and valued, and that’s something truly worth sustaining. Talk to us about your outsourcing requirements 09 444 0611, or visit www.abilities.co.nz Enriching the lives of people with disabilities.

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march 2013 FMCG

How low can you go? Are we pushing the boundaries with claims in advertising? Mark Gavin, Partner at Hudson Gavin Martin considers the legal ramifications.

he aim of a good advertisement may be to make people laugh,certainly to make people take notice of the brand and ultimately to convince people to buy the product or service which it is promoting.While the standard of advertising in New Zealand is generally good with many being on the cutting edge of creativity, sometimes these are only a few notches away from being considered offensive, sexist or derogatory. Although it can often be a difficult line to draw before an advertisement can be said to have pushed the boundaries too far or missed the mark, there are some key “watch outs” that can make the creative process easier and avoid turning a good idea into a backlash against the company and/or its brand(s). The Code of Ethics and the Code for People in Advertising are the two most relevant provisions considered by 52

FMCG march 2013

the Advertising Standards Complaints Board (ASCB) when determining a complaint about an offensive advertisement.The Code of Ethics states the broad rule that “advertisements should not contain anything which in the light of generally prevailing community standards is likely to cause serious or widespread offence taking into account the context, medium, audience and product (including services)”. The Code for People in Advertising contains more specific prohibitions against advertisements which cause

widespread hostility, contempt, abuse or ridicule. This Code does allow for humour in advertising, but not in a way reasonably likely to cause serious or widespread offence in the light of generally prevailing community standards. Basic Principle 5 also states that advertisements should not employ sexual appeal in a manner which is exploitative and degrading of any individual or group of people in society to promote the sale of products or services. When looking at how the ASCB employs these Codes in practice, it is

Generally speaking, the use of sexual innuendo regarding women in advertisements should be steered clear of.

featu re ASCB noted that the advertisement was in poster form and therefore had wide exposure to society meaning it would be likely to cause serious and widespread offence. Another example of sexual innuendo gone wrong was in a billboard advertisement for Tui Beer which featured the following statement: “Double Down, the most pleasure you can get from two breasts,” followed by the words: “Yeah Right”. This was intended to refer to the KFC limited release “Double Down” burger, which had generated some debate at the time. However, the majority of the ASCB found that the advertisement was sexually suggestive with its double meaning, one being reference to the chicken breasts in the Double Down burger and the other being a reference to women’s breasts. Again there was no obvious or exaggerated humour in this instance. Similarly, advertisements need to be careful when picking fun at someone so that this isn’t interpreted as making a derogatory statement. Another Tui Billboard advertisement which featured When innuendo at the end of last year poked fun at the goes wrong Generally speaking, the use of sexual internet millionaire Kim Dotcom’s innuendo regarding women in ad- weight stating: “She clearly married vertisements should be steered clear Dotcom for his body,” followed by the of, unless this is subtle enough to be words:“Yeah Right”.The billboard recleverly portrayed. An example of an ceived numerous complaints that the inappropriate use of sexual innuendo advertisement was highly offensive and was in a poster advertisement last year insulting to overweight individuals. for an energy drink. This featured an The ASCB held that the statement was image of a woman and a man preced- disparaging of, and derogatory to, both ing the text “If she’s had one too many, Mr Dotcom and his wife in a highly give her one”.The intention of the ad- personal way which was not saved by vertiser was to refer to the fact that if the use of humour. It may be said that the more public the girl had had too many drinks, then she should be given a can of the energy facing and widespread the message, drink to revive her.The ASCB were of the more caution is needed when the view that the suggestive image of considering how an audience may a female, in clothing that appeared to react. However, that is not to say that be lingerie, holding a drink and sitting the message should need to avoid all in an embraced position with a male, sensitivities. In one complaint about was suggestive in nature and had a pos- a Countdown advertisement last year sible interpretation in line with sexual which was not upheld, the father of assault. In this case, there was no exag- the “Countdown family” was said to gerated or satirical element, but merely have made “highly insulting” coma stab at sexual innuendo which didn’t ments that he did not want to move pull off in the context. Further, the to Christchurch. This was said to have not merely guided by whether a certain member of the public may find an advertisement offensive in some way. Instead, it will look at a range of factors (including how and to whom the advertisement is targeting its message) when considering whether it would equally affect other members of the public in this way. One example from last year was a complaint about an advertisement for Lindauer sparkling wine that featured grown men crying about their girlfriends ditching them at home for their “girls’ night out”. The complainant considered this advertisement to be “blatantly sexist”, showing men in emotional distress and mocking them. However, the ASCB dismissed the claim holding that the advertisement was portrayed in an “exaggerated and hyperbolic” manner whereby the majority of views would recognise and accept the intended humour. The ASCB also alluded to the fact that the level of acceptance of offensiveness could vary, depending on gender.

At the time of this article going to print the ASCB released a decision regarding an advertisement for used forklifts, which featured a woman in dominatrix-type clothing in the background, accompanied by the following message: “You know you’re not the first … But does that really matter? Used Forklifts”. The provocative stance and dress of the woman, along with the irrelevance of the use of sexual appeal to sell forklifts and the advertisement’s high visibility to a wide audience (including children) meant the complaint was upheld. The advertiser sought to compare the advertisement to the infamous Jockey underwear advertisement to support its view that the advertisement is not derogatory. However, the ASCB distinguished the Jockey advertisements as the images of models in underwear were directly relevant to the product being sold.

been implied by the father talking about job hunting and stating “not a lot of work out there…unless we move down South”. The ASCB held that the advertisement merely implied that jobs would exist “down South” and the city was not specifically mentioned, therefore Countdown was neither disparaging of Christchurch or offensive to its people. The above examples attest to the fact that there are more effective and subtle ways of selling products than using outright sexist or derogatory statements. That being said, sometimes the shock factor that such statements bring are enough to generate publicity and awareness with the target market, as can often be seen with the Tui “Yeah Right” billboards. Nevertheless, advertisers should think carefully when proceeding down this path. Mark Gavin is a partner at law firm Hudson Gavin Martin, which specialises in intellectual property and technology law. Also contributing Stephanie Melbourne, solicitor of Hudson Gavin Martin. Email: mark.gavin@hgmlegal.com. march 2013 FMCG

re c r u i t me nt

Prepare for change! It’s a jungle out there, says Kevin O’Shannessey. Kevin O’Shannessey Manager – FMCG Sales &

We insulate ourselves in the relative safety of our car and do battle on the roads fightMarketing, OCG Consulting. ing traffic and raging against the enemy, people like us, trying to get ahead. We charge around the grocery store, the trolley our chariot as we simultaneously engage on the mobile phone, jousting for dominance in the debate over what to eat tonight. We multitask to combat a shortage of time, doing more with less. Faster. Tougher. In the war for talent you need to be just as aggressive. Where once you could lure talented people to your business by publicising an appealing portfolio or a chunky role, the pickings have become even slimmer. Sure, there are still plenty of clever candidates out there, they just know they don’t have to look as hard as they are sitting prettily on the healthy side of the supply: demand ratio. So we have to go to them. No time for complacency. As an employer, you need to shore up your defences. Your team is at its most vulnerable when there is an element of dissent.While we do not want to oversimplify the complexities of management, experience suggests that many people want to leave either because they’re

FMCG march 2013

not listened to, or because they are unaware of the progression mapped out for them within your business. And promises, once made, must be executed. While there is no shortage of advice available on retention – communication is a key component of your campaign to keep your people fighting for your cause. Which brings us to the changes ahead – and a season for finding the best talent to manage the newly forming management of your key retail customers. There will be some interesting changes in the FMCG job market ahead. The purpose of raising this issue is to mitigate any casualties and also take advantage of the increased availability of active job hunters at this time of year. Rather than muddy yourself in messy hostilities, take the civilised approach to talent trapping by planning for it. Accepting you will need people over the coming months means you can begin to proactively solve the problem. You can’t wash your hands of the issue and hope it goes away. Take time to consider the profile of person that you, or your preferred recruitment supplier, need to be hunting for so you don’t miss the best days of the season when the trophies are the most valuable. Don’t restrict yourself to current vacancies but look ahead, predict the future. Who is likely to move up or out? Who do you need to promote or move crossfunctionally in order to keep them challenged within your business? What will be the impact (or opportunity) of any member of your team succumbing to the lure of another organisation? What if you are part of the faction of less than satisfied employees? The New Year is a good time to explore options but you shouldn’t embark on this operation without duly planning your strategy. It is important to be very clear on what you are missing in your current role before jumping into job hunting season, boots and all. Remember that your current employer knows you well and is more likely in most cases to take more of a risk on stretching you than a new employer might. So explore the market in a targeted way, but it makes sense to be clear on why you are dissatisfied rather than letting a nagging doubt that develops over the holidays take control. As the war for talent wages over the long term, the victors in each battle will be those who bolster their defences and who launch strategic offensives to secure the best people. Happy hunting.

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Plain tobacco packaging Trina Snow, executive director, NARGON.

A long fight is looming, says Trina Snow.

Associate Health Minister Hon Tariana Turia has announced the Government plans to introduce plain packaging for all tobacco products in New Zealand, but not until legal actions over a similar policy in Australia are resolved in the courts. In 2012, Australia become the first country in the world to introduce plain packaging and was immediately sued by several multinational tobacco companies and a number of countries which export significant quantities of cigarettes. The tobacco companies are complaining about a loss of intellectual property while the countries argue that plain packaging is a breach of various free trade treaties. Canada, Norway, India, Turkey and the United Kingdom are thought to be considering similar laws and will be watching the legal struggles in Australia and New Zealand very closely. Turia, who is co-leader of the Maori Party and expected to retire at the next election, has been a strong anti-smoking crusader in recent years, pushing a clearly reluctant National Party to first ban tobacco displays in stores and now to introduce plain packaging. Basically, this means that all tobacco will be sold in deliberately unattractive uniform boxes (probably beige) with no logos and the tobacco company brand name written in a standard bland font and small size.There will however be much larger (and graphic) pictorial health warnings on all packs. The move is backed by every political party in Parliament except New Zealand First. Many ACT supporters will perhaps be surprised at their party’s support for this policy. NZ First leader Winston Peters says “all plain packaging will achieve is the creation of the inevitable lawsuits which will cost taxpayers millions of dollars… By following the Government’s defective logic, why don’t they introduce plain packaging on alcohol to tackle the massive social and criminal harm it inflicts on society?” The conservative estimate is that legal action will

FMCG march 2013

cost the Government at least $6 million dollars, though the real figure would likely be much higher. Announcing the policy, Turia said it was a “good day for New Zealand” and it “would reduce the last hint of glamour from smoking.” Labour immediately offered bi-partisan support with leader David Shearer saying plain packaging was “a good idea, it will benefit New Zealanders. It’ll obviously have health benefits, bring down health costs - I think it is good all round.” NARGON is less sure. There is no international evidence that plain packaging will reduce smoking rates or the amount of tobacco consumed. It is hard to imagine that the colours and imagery on a cigarette box are the main reason people smoke, certainly not compared to the example of their families and/or the influence of friends and role models. Given that tobacco products now have to be hidden from a potential customer’s sight under the ban on tobacco displays, whatever influence packaging might have once had is drastically reduced. People will have to specifically ask for a tobacco brand before they even see the packaging at the point of sale. Philip Morris New Zealand spokesman Christopher Bishop said “there is no credible evidence that plain packaging will lower smoking rates, but strong evidence it breaches international trade rules and exposes New Zealand to [World Trade Organisation] action.” Chief executive of the Association of New Zealand Advertisers, Lindsay Mouat, argued the move was the start of a slippery slope where “some may take this as an opportunity to seek plain packaging in other sectors, such as alcohol, fast food, carbonated beverages and the like.” The policy could arguably reduce choice and information for consumers. Legislation introducing plain packaging is expected this year but will not be passed until the Australian cases are finalised. This will take some time. The usually reliable on-line prediction market iPredict says there is just a five percent chance the legislation will be passed by January 1, 2014 and only a 20% chance that it will be law by 2015. By contrast, iPredict says there is a 50% chance Seven Sharp will be cancelled by 2014 and a 10% chance that Georgie Pie will be re-launched. This is going to be an extended battle.

Deep concern over packaging changes for tobacco US business organisations have issued a joint statement expressing deep concern with the New Zealand Government’s decision to introduce plain packaging for tobacco products. The organisations include the US Chamber of Commerce, the National Association of Manufacturers, the Emergency Committee for American Trade, the United States Council for International Business, the National Foreign Trade Council, the Transatlantic Business Council and the US-ASEAN Business Council. They say the changes will violate New Zealand’s international trade obligations and facilitate illicit trade and counterfeiting. “Of course we respect the right of New Zealand to regulate in the public interest, but this approach is contrary to regulatory best practices,” the organisations said. “Above all, there is no compelling evidence that it will actually advance the public interest.” The organisations made a submission to the Government last year and want to reiterate their concerns. “Although presently this effort is only confined to tobacco products, we see this as a systemic threat to rules which intellectual property and the trading system are dependent upon. “We hope the New Zealand Government will consider the concerns we have raised for the possible impact on

New Zealand exports, such as dairy and wine, should other governments feel emboldened to take similar measures.” The Government announced it would introduce legislation this year to enforce plain packaging. It is taking a cautious approach, and before the measure is implemented it will watch developments in Australia. Plain packaging was introduced in Australia in December and the big tobacco companies lost a lawsuit challenging this legislation. l

Gull’s latest express lane launched Family owned fuel retailer Gull has once again led the market, this time in West Auckland, launching a speed lane at its Portage Road, New Lynn site. Graham Stirk, retail manager says: “Pay at the pump is a quick and easy way for busy motorists to fill up and be on their way with minimal delay.” This is Gull’s second speed lane in the Auckland region and complements the company’s expanding network of unmanned drive through sites. “Our first speed lane at Roscommon Road in South Auckland has been tremendously popular with small business owners and also with parents of small children, who don’t have to leave their kids in the car while they pay (after filling up).

“We expect to introduce more of these speed lanes in the coming months. No-one wants to spend any more time at the pump than they need to. Speed lanes offer time savings to customers, and Gull couldn’t be happier about making it easier for hard working kiwi motorists to fill up.” Pay at Pump is for EFTPOS or PIN activated credit card transactions only. Customers wishing to purchase fuel using supermarket discount vouchers and/or to purchase items in the convenience store, will need to pay the attendant as usual. Gull New Zealand made the first retail sales of petrol in 1999 and has grown the network to over 40 branded sites. Gull now has four service stations that only sell bio fuels, which is another first for New Zealand. l

march 2013 FMCG

Liquor retail the business of liquor reselling

Keith Stewart talks to Peter Fredatovich Jnr. Peter, you have just opened a retailer at the family property on Lincoln Road, in the heart of Trust country. Do you believe that the Trusts are a relevant force in liquor retailing right now? I think the Trusts’ model has benefits to the local community. Probably their biggest contribution is preventing the proliferation of minor liquor outlets that have become abundant in other parts of Auckland. The recent re-fit of their stores has been well received by the community. You have generations of experience behind you in independently retailing alcohol beverages in this heavily regulated market. What do you see as the biggest challenges to independent operators like yourself? Buying power will always be the biggest hurdle, particularly when you are up against large chains, supermarkets, or in our case the Trusts. The relations we have built up with suppliers have meant we are able to utilise those to get the best price. Liquor control legislation has in the past driven industry consolidation that puts control in the hands of large conglomerates. In the past it was the breweries, now it is supermarkets, how does an independent like you survive? We make our customers our number one priority. We listen carefully to what they want, and deliver on this. We have had a lot of support from customers coming into the store who have been impressed with our range, knowledge and their overall experience. Our tag line is ‘good times’ – something that modern retailing has lost its way with, and something our customers do when

enjoying our products and our store. We pride our store on offering something that is unique and handpicked, while also offering your everyday items. We work with a lot of smaller suppliers, who wouldn’t get their foot in the door at the large chains, yet offer amazing products at great value. How do you pick the trends in consumer spending that give you an advantage over your competition? We have some in-store initiatives that allow us to gauge our customer interests. By keeping our ear close to the ground we can get in product that is in demand. Being a single store, we can react quickly to consumer trends and have product on the shelves promptly. Social media has also been a focus for us, and allows our customers to give us feedback on what they want from their store. You have branched out from being exclusively wine traders to adding beer and spirits to your mix. What are your first impressions of the different challenges this poses? There is a lot of product out there on the market! It seems we are at a point of saturation, yet there are always new products coming out. Each product sector in general is becoming increasingly competitive, although I think we are steadily seeing a shift from ‘consumption’ to quality – something the big players are taking heed off. We are traditionally wine traders, although we have seen a similarity in our passion of wine with craft beers – where there is a dedication to quality and enjoyment, over consumption.

in NZ now This seems to be reflected in our customers, who prefer to have a quality drink at the end of the day as opposed to consuming a dozen commercial beers in a weekend. The response from people who are trying quality craft beers for the first time has been amazing, with price being no barrier to enjoyment. Spirits as well seem to be enjoying an artisanal takeover. I think the big players will always dominate due to their marketing prowess; however customers are becoming more intrigued with more boutique options. Do you think that supermarkets will ever get the option of selling spirits? I hope not. Alcohol in supermarkets is a convenience, and I have no problem with them selling beer or wine,

but spirits should not be easily accessible, particularly RTDs that are aimed at the youngest segment of the market. The aggressive pricing that we see with beer and wine would no doubt also be put into the spirits segment, making it even more accessible. If they do, what will it mean for your future business? Our business model is set-up completely differently to supermarkets, where price is the driving factor (although there are now notable exceptions that carry a great range). We aim to offer a personable and knowledgeable service where our range is selected based on being an excellent offering as opposed to its GP. I don’t think supermarkets will be able to replicate this, so I am confident we will

Peter Fredatovich Jnr.

be able to trade with supermarkets in our local market. I think Blanc is an inspired name for your business. How did you come to it? This was a hard decision, as Lincoln has been synonymous with our property and wines since 1937. My late Father, Peter, and I both wanted to distinguish ourselves from the name Lincoln as we would have a much broader offering than our own wines. We still wanted a wine focus, as we felt this was lacking in West Auckland. NZ is well known for Sauvignon Blanc, it is also our favourite white wine, and we liked the connotations of being a fresh, crisp, white wine. So Blanc was opened in December 2012 – a modern store with a traditional past. l

MasterChef NZ winner endorses First Pick Kim Crawford has released two varieties of specially crafted wines in its First Pick range that are lighter on the lips and the hips. First Pick Lighter Sauvignon Blanc and Pinot Gris (RRP $17.99) are both full flavoured wines. However, they contain 25% less alcohol than traditional Kim Crawford First Pick wine varieties and only 87 calories per 150ml serve. Being lighter in alcohol, the Sauvignon Blanc and Pinot Gris will gain favour among imbibers for lunch if they’re returning to the office, or if they have a lengthy social function to attend, Kim Crawford says. Rob Sinclair, senior vice president sales and marketing, says the brand is responding to feedback from

consumers. “We’ve spoken to our customers and the message is loud and clear – they want a choice when it comes to their wine consumption. Many are seeking healthier lifestyles and globally there is a trend towards wines with lighter alcohol content. “The lighter wines don’t compromise on flavour and are wonderful choices for all occasions. Since the introduction of Sauvignon Blanc in 2011 we have seen strong following in the category,” he says. MasterChef NZ 2012 winner Chelsea Winter says the Kim Crawford First Pick Lighter range is the perfect accompaniment to light and fresh courses. “The wines are crisp and refreshing – the tropical, citrus flavours of the

Sauvignon Blanc work really well with seafood such as fresh snapper, salmon or a prawn salad. Whereas the light and fruity finish of the Pinot Gris is a nice MasterChef NZ 2012 winner match to spicy dishes Chelsea Winter. such as beef fajitas or Portuguese chicken,” she says. “I also love the fact that I don’t feel guilty having a glass or two at lunch with the girls,” Winter says. She has created a range of inspiring recipes that team well with Kim Crawford’s lighter wine varieties. For more information on the Lighter wines and food-matching inspiration from Winter visit Facebook.com/ KimCrawfordWines. l MARCH 2013 FMCG

Authenticity Is this the beer marketâ&#x20AC;&#x2122;s biggest challenge? Keith Stewart investigates. Brands, brands, brands; these are the driving force behind a beer market that is well into its largest upheaval since the arrival of international lager. The big question facing those operating in this section of the retail market is what exactly the value of brands is, and what brand behaviour tells us about the general characteristics of the beer market, with authenticity the key ingredient. The matter of authenticity has been a feature of beer marketing in this country for as long as beer has been around. One of our oldest brands, Tui, has sold itself for generations as India Pale Ale, which it patently is not. As craft brewing has increased its presence in this market, this classic case of branding deception has become more and more obvious,

FMCG MARCH 2013

but in the loosely regulated New Zealand market it is a deception that is allowed to continue. But rather than manipulation of classic styles, the question of authenticity also arises around well-established brands that would never allow their integrity to be compromised in the way Tui has with IPA. Steinlager and DB Export are brands that are never questioned by consumers, for they are local brands, created and brewed here for a market whose expectations are based on an understanding of their respective personalities, as beers and as brands. However a big brand such as Heineken is in no-manâ&#x20AC;&#x2122;s-land, a fact made apparent by activities in the retail market here towards

the end of last year. Heineken is truly international in character, as well as in fact, brewed as it is in numerous places around the globe and presented through its advertising as a cosmopolitan brand with considerable chic. Unfortunately that internationalism does not sit well with a certain sector of the New Zealand market that considers Heineken to be an imported beer, which is by definition part of its cosmopolitan character. To be even more particular, many consumers consider Heineken to be Dutch in origin, which is a problem if it is being brewed in Otahuhu. The question is, for Heineken owned DB Breweries and for beer retailers, how big is the market for this particularly Dutch beer and how big is the

“People are more interested in trying something different, and they are attracted to authentic imports.” Jason Witihera, owner of New World Victoria Park demand for authenticity in this sector of the beer market? The answer was delivered to any who wanted to know last year, when Progressive parallel imported significant quantities of authentic Dutch Heineken to sell through their Countdown outlets. As a trial this exercise told us that the authentic market is too large to ignore, for Progressive is believed to have brought in around 150,000 cases of Dutch Heineken, which sold out within six weeks. That is a market worth nurturing. More evidence emerged with the transfer of the Holsten Pils brand from Beer Force to Independent late last year. While Independent saw the brand as a ‘brewed under license opportunity’, Beer Force continued to sell its imported Holsten as the authentic product. With both brands going head to head, it was a new market for locally brewed Holsten that emerged, as sales for the imported version were the same as they were the previous year. But the whole story is not just in the case sales data. As Beer Force’s Grant Willoughby points out, “Countdown outlets with authentic Heineken became destination stores, as have those outlets featuring authentic Holsten cans.” Suddenly the quest is not just for

case sales, but for brand loyalty in a total beer market which lost 6.5% in volume last year alone. Customers who will travel out of their way to get an authentic beer are worth nurturing, especially if the Heineken experiment is an indication of a marriage of strong brand and authenticity. Willoughby is a strong advocate of authenticity for precisely that reason. “In a shrinking market it is hard enough to get customers, let alone keep them,” he says. “Beer Force only deals with brand owners who produce their beers in the country of origin,” he adds. Jason Witihera, owner of New World Victoria Park, reputed to have the greatest beer range in the country, agrees, to a point. “People have become more knowledgeable about beer. This has come from the huge growth in craft beers, so people are more interested in trying something different, and they are attracted to authentic imports,” he says. But his attraction to the sector is not so much about brand loyalty as about the point of difference stocking those beers offers. “They may not be big movers, individually, but they give our selection a point of difference,” he says. Witihera also identifies another aspect of the authentic beer sector

that is of importance in their beer mix. “Most of the imported beer lines in that sector are not marketed on price like the big international brands are, which means our margins are healthier. The big advertisers do sell the volume, but the margins are so squeezed to meet their price points they are less profitable than those authentic brands,” he says. One thing is certain, the beer market, and its closely associated cider market, is volatile, as changes can happen fast and in significant volume to make sharp differences to sector returns. It is clear that beer buyers no longer shop for large packs, with six-packs and even single bottles proving much more profitable. This alone stimulates more attention to shoppers making experimental purchases as they explore the flavour diversity being promoted by modern beer media and the marketing activities of local craft brewers. Beer volumes may be declining, but for retailers beer has never been more interesting, or exciting. l

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

MARCH 2013 FMCG

Top of the Pops Beers and ciders are flying off the shelves this season, with many exciting new releases still on the horizon. Cider sales have boomed in recent years in the UK, the US and in New Zealand too; hence the move by some of our big breweries into cider. Nelson-based cidermakers, Redwood Cider Co, continue to prove they are world-class cider producers with their latest win at the International Brewing Awards 2013. Redwood Cider Co has the distinction of being the only Gold medalwinner for cider from outside of the UK, which has long been considered ‘The Home of Cider’. Their newest innovation in the Old Mout Cider range, Passionfruit & Cider, took out Gold and was the only medal awarded in the ‘Cider with other fruits, juices or flavours 5.0% ABV* and above’ category. More than 45 countries submitted their wares across a broad spectrum of producers from regional micro-brewers to multi-national companies. Of 1000 entries, 96 medals were presented to brewers and cider makers and only four of them were Gold for ciders. Results were announced after a gruelling three-day judging session at the National Brewery Centre in Burtonupon-Trent. Justin Hall, ‘Chief Cider Lover’ and managing director of Redwood Cider Co, is chuffed that the new addition has been recognised on such a great, international scale. “It’s just tremendous to see the judges’ opinions reflect those of our discerning consumers – and be awarded for it with a golden gong. I know our cider makers are equally as overjoyed so we’ll be having a bit of a celebration with the team.” Old Mout launched Passionfruit (5.8% ABV) – a blend of crisp apple cider with luscious real Passionfruit wine – to huge local acclaim in September 2012.

FMCG MARCH 2013

The International Brewing Awards, which date back more than 120 years, have had an absence of cider categories for some decades, but reintroduced two for the 2013 awards. The response was massive so there are plans afoot to further develop this aspect of the bi-annual awards for February 2015. *ABV= Alcohol By Volume

50 Knots Brewery But it’s not all about the big breweries in New Zealand and there are some very fine examples of authentic ciders available from smaller producers. Crooked Cider is a traditional, cloudy, Normandy-style cider, which is not as sweet as some of the other ciders on the market. 50 Knots Brewery director Nigel Knowles told BWS: “A friend mentioned Crooked Cider to me in early 2012. He presented a bottle at our next bi-weekly catch up. I was impressed with its unique aroma, and full dry flavour. A few weeks later I asked at a bar if Crooked Cider was available and they said they were

unable to re-purchase stock due to the company closing its doors. With a few more enquiries, co-director Mike Pullin and I found ourselves in negotiations with the liquidator of the Crooked Beverage Company’s stock and assets. Within a few weeks we were the proud purchasers of thousands of bottles of our favourite cider; hundreds of litres of 14-year aged rum, a fantastic tonic syrup for Gin and other cocktails; as well as tanks, and bottling equipment in need of some serious cleaning. “Currently we are restocking the many retailers, bars, restaurants and supermarkets that are already familiar with our product and have stocked Crooked Cider before. “Crooked Cider is stocked in a number of New World stores, Fresh Choice stores and other liquor retailers, but we welcome new stockists. Due to the high demand for the non sweet, champagnestyle cider we favour, our future production will be based in Hawkes Bay,” he says. l

Crooked Cider - Apple Crooked Cider, hand-crafted in the Hawkes Bay from 100% pure NZ organic tree ripened apples. Taking care not to rush Mother Nature, our cider is Batch brewed in the traditional Normandy style, using the finest French Champagne yeast. Bottle fermented, delivering an authentic BONE DRY cider experience, second to none. RRP $8.90 per 500ml 50 Knots Brewery Ph: 021 651 608 – Nigel Knowles BCom, BA sales@crookedcider.co.nz

beer s & ci d er s Steinlager Pure Steinlager Pure contains no additives and no preservatives. Just water, barley, hops and yeast – all sourced from New Zealand. Steinlager Pure uses a selection of New Zealand’s finest hops, including a new variety called Pacific Jade specially commissioned by Steinlager. Pacific Jade delivers a smooth, refreshing flavour designed to appeal to a new generation of premium beer drinkers. RRP $28.99 per 12 pack Lion Phone: 0800 10 72 72 orders@lionco.com www.lionco.com

Steinlager Classic Steinlager Classic’s international awardwinning taste is envied by brewers the world over. Steinlager Classic has a robust hop nose of fresh-cut green grass and a full flavour delivered by the green bullet hop, grown in Nelson at 41 degrees latitude, the perfect hop-growing location. RRP $28.99 per 15 pack Lion Phone: 0800 10 72 72 orders@lionco.com www.lionco.com

Monteith’s Pacific Pale Ale The intensity of North West American hops with the liveliness of New Zealand hops, filtered to give it a clear straw appearance. Beginning with a zesty citrus aroma, this pale ale has a full malt flavour and crisp finish. RRP $15.99 per 6 pack or $26.99 per 12 pack DB Breweries Ltd Phone: 09 259 3000 www.db.co.nz

Monteith’s Golden Lager A smooth malty character with a rounded cashew nut flavour coaxed from the premium Munich Malts. You’ll find there’s just enough hops to create a crisp, refreshing beer. RRP $15.99 per 6 pack or $26.99 per 12 pack DB Breweries Ltd Phone: 09 259 3000 www.db.co.nz

Monteith’s Summer Ale The malts give it the smooth heart, the single hop and ginger its touch of spice. A little rata honey finishes things off nicely, leaving you with a truly refreshing taste experience. RRP $15.99 per 6 pack or $26.99 per 12 pack DB Breweries Ltd Phone: 09 259 3000 www.db.co.nz

Monteith’s Radler Easy drinking with light hoppy notes and a hint of natural lemon juice. Let this zesty beer refresh you with its tangy citrus finish. RRP $15.99 per 6 pack or $26.99 per 12 pack DB Breweries Ltd Phone: 09 259 3000 www.db.co.nz

MARCH 2013 FMCG

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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 to win Madame Flavour teas, including one pack of each luxurious blend (worth more than $40!). Madame Flavour loves tea. She envelopes loose leaves from her favourite estates in delicate silky pouches to create blends including Green, Jasmine and Pear; and Sultry Chai. Just email your high res 64 FMCG image withOCTOber a caption2012 to: editor@fmcg.co.nz

ed nearly y flavour rais & Black Berr d Appeal. Ten Re s ke hâ&#x20AC;&#x2122; ua es hq fr rt Vita tchurch Ea ris Ch e the Youth th ds r ar fo $17,000 sold went tow Rod Carr (L) et ck pa ch cents from ea rtfolio of the Appeal. Dr n po for Hansells) and Educatio les manager sa l na io eg (r ss and Dean Ro eque. present the ch

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