FMCG July 2010 by mediaweb

incorporating JuLY 2010 Volume 16 No 6 $8.95

THE BUSINESS OF MANUFACTURING • LOGISTICS • SUPERMARKETING

Are you protecting yourself and Dual fighting power for strong immunity No matter where you are or who you’re with, at this time of year you’re at high risk of catching a winter chill.

inter brings extra challenges allenges to the immune system and, with that, a higher chance of running out of steam. But with a bit of preparation, you can help bolster your immune system – through winter and beyond.

EXTRA-STRENGTH IMMUNE SUPPORT Vitamin C is known to protect the immune system, but when combined with Echinacea it offerss even more fighting power. Thankss to Healtheries, experts in immune e support, you can get the two ingredients together in one highstrength formula.

WINTER NUTRIENTS Vitamin C • Aids recovery time from ills and chills • Protects body tissues against toxins, pollution, and free radical damage • Helps flush out toxins from the body. Echinacea • Works as an antioxidant to bolster immunity • Supports the body’s production of immune system cells.

HEALTHERIES VITAMIN C & ECHINACEA Healtheries Vitamin C & Echinacea can help every member of the family maintain a healthy immune system. These tasty, chewable tablets are so easy to take that even kids won’t mind them. With buffered (stomach-friendly) Vitamin C and no artificial colours or flavours, there’s no easier way to get the dual fighting power of nature’s most revered winter nutrients.

WHAT TO TAKE AND WHEN W He Healtheries Vitamin C & Echinacea not only helps your Ec immune system ward off im winter chills but also aids in w recovery, to help you get back re on o your feet and back into life, li quickly. Available in different A dosages, Vitamin C 250 d & Echinacea is best used for f daily maintenance protection whereas Vitamin C 500 & Echinacea and Vitamin C 1000 & Echinacea are best 1 used when actual ills u take hold.

your customers this winter? Prepare yourself ahead of time Catching a winter chill can be costly, especially when you have work or the kids to think about. Building up your immune system could save you much time and hassle over coming months.

TURN TO HEALTHERIES Healtheries has packed some of nature’s top immunebuilding ingredients into an entirely natural, all-in-one formula.

WINTER NUTRIENTS • Garlic – supports immunity, circulation and helps cleanse and detoxify the body • Vitamin C – assists the body’s natural adaptation to winter’s temperature changes • Zinc – helps soothe dry throats

• Echinacea – supports and provides ealtheries immuneimmunity support formula combines garlic, vitamin C, zinc, echinacea and olive leaf antioxidant benefits

in a unique high-potency formula that can carry

• Olive leaf – contains oleuropein, a powerful you through winter and beyond. antioxidant.

EASY AND CONVENIENT To help safeguard yourself and your family from winter ills, consider making Healtheries immune support formula part of your daily routine. You can get the benefits from just one daily tablet. It’s odourless, easy to take, and also suitable for children over the age of six.

strong immune system can help you ward off winter chills, but it’s important to build immunity now before your body comes under attack.

NATURAL IMMUNE SUPPORT Plants have been used for centuries to keep ailments at bay, and today key vitamins, minerals and herbs are as important as ever for helping maintain immunity. Taken ahead of time and combined with a healthy diet, exercise and sleep, they’re your best defence against a winter chill.

Always read the label and use only as directed. Garlic can interfere with the working of certain medical drugs. If symptoms persist consult your healthcare professional. Supplementary to and not a replacement for a balanced diet. www.healtheries.co.nz Healtheries New Zealand. TAPS NA4199 / TAPS NA4068.

For more information visit www.healtheries.co.nz 4312_NZ

20 Supermarket Guru Phil Lempert shares his insights

32 Regional Fare

contents

Features

j uly 2 0 1 0

6 Editor’s note 8 Industry news 25 What’s hot

A celebration of New Zealand food and beverage begins

40 The Palm Oil Debate

Greenpeace, the FGC and readers contribute

Category checks

26 Chocolate 34 Vitamins and supplements

Regulars 16 17 18 19 31

Nargon GST still a political issue

FGC Traffic labelling the lazy option

Fresh and local In season

Beef & Lamb Consistency is key

Food show Fine Food

OUR COVER Great grapes, expressive winemaking and an approachable style make Constellation New Zealand’s range of Kim Crawford Wines the ‘First Pick’ for any occasion.

contents

37 GS1

On pills and FMCG

38 Awards

Pride In Print

43 Grocery business

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

j uly 2 0 1 0

46 Show

Gluten Free Food & Allergy Show

48 Legal

My company name says what?

64 Snap!

Have you been spotted?

65 Diary

Your calendar of industry events

49 Feature

Marshmallow ice cream arrives

51 News 53 Nargon

Report on the ledger

54 Directory

55 Feature

Craft beer market continues to grow

58 Industry news 63 Profile

Dave Nichol, Moa Brewery

Now New Zealandâ&#x20AC;&#x2122;s * Best Selling Moisturiser

REJUVENATING ANTI-WRINKLE CREAM*

LOD O 0 OD 008 08 82 2_F _ FMCG M G

To develop the Skincare Category Youth Code Day * Aztec Combined Market (Grocery & Pharmacy) 4 week ending 23/05/10

e ditor ’s note Vol 16

No 6

juLY 2010

issn 1175-8279

Incorporating

Serving the business of manufacturing, logistics and supermarketing

PAULINE HERBST – editor editor@fmcg.co.nz

Ashley Kramer – SENIOR account manager Mob: 021 232 9401 admanager@fmcg.co.nz

peter corcoran – account manager Mob: 021 272 7227 peterc@mediaweb.co.nz

Production Manager Fran Marshall (09-832 0024) franm@mediaweb.co.nz

Design Cherie Tagaloa

Subscriptions subs@mediaweb.co.nz 09-845 5114 $88.00 a year (incl GST) for 11 issues Australia $150.00 Rest of the world $190.00

Printing & Pre-press Benefitz

Publisher Used on a white background

Mediaweb Limited PO Box 5544 Wellesley Street, Auckland 1141 Used on a black background Phone 09-845 5114 Fax 09-845 5116 www.mediaweb.co.nz The opinions and material published in FMCG are not necessarily those of the publisher except where specifically stated.

Turning point Once the winter solstice has passed you know it’s only a matter of time until the glorious summer, but in the meantime, the rain is welcome after the early drought. However, it looks like farmers are still going to suffer once the Emissions Trading Scheme takes effect. As this issue went to print, Federated Famers’ president Don Nicholson appeared on TV One’s Breakfast saying: “An average lamb farmer is going to lose 12% of his profit if everything stays the same in this coming season, so it’s a big deal.” June was a busy month for the food industry and FMCG has tried to capture as much as possible within these pages. Medsafe banned cough medicines for under 12s from supermarkets and there is still ongoing debate about palm oil, ‘traffic light’ labelling and GST exemption. In between the politicking and lobbying there have also been some fantastic food shows and industry conferences. The Auckland Gluten Free Food & Allergy

Pauline Herbst, Editor Official b2b magazine for the Gluten Free Food & Allergy Shows. Media sponsor: Pride in Print Awards.

Show was held at the end of May, the Fine Food Show reported a great success for its inaugural offering and the Pride In Print Awards again had some strong contenders from the FMCG industry. The New Zealand Institute of Food Science & Technology also held its annual conference featuring high-profile speakers such as Bridget Liddell, managing principal of Fahrenheit Ventures; the CEO of Fonterra, Andrew Ferrier; the founder and chairman of ANZCO Foods, Graeme Harrison; and MD of Global Ingredients and Foodservices Fonterra, Andre Mikhalevsky. A definite highlight was the visit of Phil Lempert, the US-based Supermarket Guru and an insightful trends analyst. You’ll find pearls from his presentation as well as the media briefing prior in our lead feature ‘The Future of Food’. It seems the industry has ramped up a notch and so have its challenges. If this is the case the future of food will be as interesting to track as consumers’ behaviour.

Europeâ&#x20AC;&#x2122;s No.1 haircare * brand is now in NZ! NEW

* Europe 23 countries Nielsen and IRI Jan-Dec 2009.

LOS001 10_FMCG_R R

To reverse the decline of the Haircare Category

news Certificate of Origin online system launched An innovative online system has just been launched to help exporters better manage Certificates of Origin. Independent Verification Services (IVS), a New Zealand Customs designated body for the issue of Certificates of Origin, has released a unique web-based product and has tailored it to specifically meet the needs of New Zealand exporters. “Exporting products to a country of 1.3 billion people without having your profits eroded by tariffs is an exciting prospect for any New Zealand business,” says Peter Webb, chief executive, IVS. “Under the China-NZ Free Trade Agreement (CFTA) and ASEAN-Australia-NZ Free Trade Agreement (AANZFTA), exporters can take full advantage of the benefits on offer, including tariff reductions, enhanced regulatory co-operation and, in the case of the CFTA, preferential customs clearance.” IVS’ web-based system was officially launched at the Customs Brokers and Freight Forwarders Federation of NZ (CBAFF) Conference in Queenstown. The system not only allows exporters to manage their own certificates, but has added functionality to enable agents, such as freight forwarders and customs brokers, to provide an improved level of service by managing certificates on their clients’ behalf. “We’ve put a lot of thought into what’s required and have come up with a secure, efficient system which should ultimately help exporters capitalise on all the free trade agreements which New Zealand now has in place,” says Webb.

The Certificate of Origin website is split into three areas – one relating to CFTA, one for AANZFTA and one for nonpreferential certificates. The site enables exporters to import and save their product lines along with all consignee and exporter details. Information can also be transferred between the three areas so the information doesn’t need to be re-entered for different agreements, and as new free trade agreements come into force the system will be expanded and streamlined to accommodate them. “It can sometimes be a difficult and complex process to determine whether goods qualify as originating under various free trade agreements and IVS is here to provide that specialist help,” says Webb. In order for exporters or their agents to obtain Certificates of Origin using the new site, they need to register with IVS. IVS supports New Zealand exports and imports through biosecurity and verification services. l

Spending slips The latest figures from Paymark, which processes more than three quarters of all electronic transactions in New Zealand, indicate that growth in spending remained relatively flat in May at 1.3% when compared to the same period last year. Figures show that spending decelerated mid-May and slowed down further towards the end of the month. This could have been due to a number of factors such as the bad weather, some nervousness ahead of the 20 May budget and an increased anxiety about the global financial markets. “Rain was just one part of the puzzle for retailers last month. For most people, money is still tight and there may have been some restraint in advance of the Budget,” says Simon Tong, CEO of Paymark. “Whatever the reasons, similar to the pattern of recent months our network is seeing subdued spending, a trend which suggests

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continued cautious sales forecasting for retailers,” he adds. Spending growth in sectors such as liquor outlets and recreational goods retailers, for example, was down on the same month last year (-8% and -5% respectively). However sectors that showed good growth was takeaway food (+7%), cafes/ restaurants (+6%) and furniture (+6%). The fastest growth rates were around the Waikato (+3%), Bay of Plenty (+2%), and Gisborne areas (+5.4%). The parts of the country to experience significant declines were Nelson (-1.9%), Marlborough (-5.9%) and Canterbury (-0.2%). The volume of transactions processed through the Paymark network for May was 3% higher than a year ago; an annual growth rate lower than any achieved amid the recession of 2008. Credit card transactions also dropped (-0.4%), whilst debit card transactions were up 4.1%. l

n ews Kids dig in McCain Foods has launched McCain School Veggie Patches, a programme to teach primary school children about the origin and benefits of vegetables by planting and growing vegetables in their own schoolyard. Award-winning chef and TV personality Pete Evans is involved. Nicki Anderson, marketing director, McCain Foods Australia and New Zealand, says she is proud to announce the programme, which marks a significant commitment to children’s food education from McCain Foods. “We are passionate about educating children about the foods they eat and where they come from,” says Anderson. “McCain School Veggie Patches aims to teach children about the benefits of healthy eating in a fun, outdoor environment. Involving children in the process of planting, growing and harvesting veggies is a great way to get them excited about eating veggies, and gives kids some of the building blocks for making healthy lifestyle choices.” Primary schools across Australia and New Zealand have received an information pack with instructions on how to register their school for the programme. Once a school has registered for the programme, parents, businesses, and community members can donate points to the school by collecting barcodes on all McCain frozen vegetable packs, and McCain Purely Potato products. Participating schools can redeem their points for everything they need to build and maintain a veggie patch, including seeds, tools and equipment; such as gardening gloves, wheelbarrows, water tanks and compost bins. The programme represents a $500,000 commitment from McCain Foods for garden equipment available to schools across Australia and New Zealand. There is also a microsite with online resources, games, student worksheets and educational quizzes to support McCain School Veggie Patches at www.mccainveggiepatches.com. Anyone can support and earn points for the primary school of their choice by collecting barcodes from any pack of McCain frozen vegetables or Purely Potato products and dropping them into a registered primary school. An alternative is to send the barcodes in a stamped envelope with the name, town and state/postcode of the chosen primary school to: McCain Veggie Patches, PO Box 410, St Leonards, NSW 1590, Australia. l

•

reader giveaway Spot the bee This month’s winner of the Spot the Bee competition hails from Wellington. Natasha Tunnicliffe from NZ Pork was the quickest off the draw, spotting the bee hitching a ride on Ploughman’s shaggy Clydesdale on page 12. The search is now on for the July winner. Email your answer to editor@fmcg.co.nz with ‘Spot the Bee’ in the subject line. Remember to add your address details in case you’re the lucky winner.

Buzz Channel: Robust, engaging, affordable online research specialists, helping you make business decisions. Phone (09) 379 8920. www.buzzchannel.co.nz

Recent product recalls Bluebird Light Plus sea salt potato chips 150g, with a best before date of 25 August 2010, have been recalled. This is as the product contains milk, soy and gluten allergens which are not declared on the label. Customers allergic to milk, soy or gluten should be advised to return the product to the place of purchase for a full refund. Phone 0800 762 324 with any queries. l juLY 2010 FMCG

news L’Oréal hamper winner The winner of the L’Oréal Paris hamper is Dalveen Singh from The Nielsen Company in Auckland. The answer to the June cover promotion was: ‘Evangeline Lilly promoting Elvive Total Repair 5’. l

giveaway winner

Ready meals get a makeover Tasty Pot Company has launched a range of ready meals packed full of a variety of vegetables and wholegrains in a tasty sauce with fresh herbs and spices. Each is low in fat and high in fibre and provides the daily-recommended dose of three portions of vegetables – in one hit. Tasty Pot Company is the dream of two Kiwis who came home from a stint in Europe looking for inspiration outside of their own kitchen. They’ve teamed up with a group of smart thinking New Zealand chefs, including Camille Rope and Michael Van De Elzen, to develop five gourmet (yet widely appealing) recipes using only natural, honest ingredients, sourced locally from New Zealand growers wherever possible. With a selection of gluten free and vegan options, and a choice

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of cold and hot recipes (requiring three minutes in the microwave or a little tickle on the camp fire as suggested on their slightly quirky labels), Tasty Pots will leave a lasting impression whether enjoyed as a filling meal or a side to meat at dinner. Founder Andrew Vivian says, “We have a young family and we are busy people, but we have long been aware that convenience doesn’t necessarily mean health – which fails people looking for a good feed in a short space of time. These recipes do exactly what they say on the pack and we felt New Zealanders were ripe for some honesty and good ingredients for quick, tasty meal solutions. We have worked at giving the pot a bit of personality with our design, but the real beauty is on the inside. We hope you enjoy.” l

n ews Local company bites into snack market Nuttz Gourmet Selection packaged nuts launched into the New Zealand market with strong sales growth and quick uptake by premium food stockists including Nosh, Smith & Caugheyâ&#x20AC;&#x2122;s and Albany New World. The founder of Nuttz Gourmet Selection Alan Lilburn says there is a huge market in New Zealand for healthy snack alternatives and believes his company is going someway to address it. â&#x20AC;&#x153;We already have good penetration of gourmet food stockists but any food providers, including health food stores, gyms, cafes and restaurants should provide a quality healthy snack alternative to their existing customer base.â&#x20AC;? Lilburn attributes the early success and market penetration of Nuttz Gourmet Selection to the quality and taste of the product. Once tasted, Lilburn describes the conversion to sale ratio as â&#x20AC;&#x153;very highâ&#x20AC;?. Presented in distinct clear and stylish packaging, Nuttz Gourmet Selection offers sweet varieties in Chai Almond, Vienna Almond, Honey & Sesame Almond, Honey Cashew, Cinnamon Cashew and Honey Macadamia. Its spicy/savoury varieties come in Thai Sweet Chilli Cashew, Moroccan Tajine Cashew, Lemon Myrtle & Black Pepper Macadamia, Wasabi Macadamia. Using only the highest quality nuts, the companyâ&#x20AC;&#x2122;s coating and dry-roasting process offers New Zealanders a popular alternative to the traditional packaged nut varieties, which have been salted or roasted in oil. Lilburn says as many nut varieties are not grown in New Zealand in commercial quantities he outsources the nuts, based on their size and quality. These include cashews from Vietnam, almonds from Australia or California, and macadamias from Australia or New Zealand depending on season and supply. Various coating techniques are used depending on the nut and flavour, however the majority are coated with honey. This keeps the product gluten and cholesterol free while allowing the natural spices to bond to the nut. The nuts are also dry roasted to prevent saturated fat from oil roasting decreasing the nutritional value of the nut. Most varieties contain no trans fats, are cholesterol free, gluten free and low GI while also containing the natural health benefits of nuts â&#x20AC;&#x201C; unsaturated fats as well as essential minerals and vitamins. l

WINNING TRUST BY THE BUCKET LOAD

â&#x20AC;&#x153;Viscountâ&#x20AC;&#x2122;s flexibility, nimbleness and local presence has been vital to the success of the campaignâ&#x20AC;? Cookie Time general manager Lincoln Booth The Cookie Time Christmas Cookies bucket had remained largely unchanged since its inception in 1985, and its design was looking dated and tired, and no longer reflected the current Cookie Time branding. Viscount developed an innovative new bucket design incorporating groundbreaking new technology â&#x20AC;&#x201C; Inmould Labelling (IML). Inmould labelling introduces pre-printed labels into the moulding process to create a seamless fusion of label and rigid plastic packaging. IML proved to be far more cost-effective for Cookie Time, and the new packaging has been well received by the public with record sales in 2009.

Ph 0800 473 373 www.viscountplastics.co.nz

&RRN\ 7LPH +$ 3$*( )0&* LQGG

juLY 2010 FMCG

news New Zealand’s fairest supermarket

New Zealand shoppers have voted South City New World in Christchurch as the best Fairtrade supermarket in the country. During Fairtrade Fortnight (1st-16th May) consumers were asked to nominate the supermarkets which stocked the most Fairtrade products and were most supportive of Fairtrade. South City New World came out tops selling around 100 Fairtrade product lines. Shoppers were impressed by the store’s variety, mentioning special tasting evenings and clear positioning and grouping together of the Fairtrade products. “The Team at South City New World are thrilled to be voted New Zealand’s ‘Fairest Supermarket’,” says owner/operator, Nigel Bond. “For the past four years we have made a commitment to expand our Fairtrade product range significantly, and while this has strengthened our store’s ‘point of difference’ it is also a recognition that many of our customers really want to become part of the global movement that is changing lives and empowering whole communities. “Depending on seasonality, we now stock around 100 Fairtrade products, our latest addition has been our first ‘fresh Fairtrade product’ - bananas. We have only had them on our shelves for a few weeks but the demand is growing steadily, with volume exceeding 150kgs per week,” says Bond. Runner up in the Fairtrade Supermarket Awards was Pak’nSave, Whakatane. The store’s proactive efforts to make Fairtrade certified products accessible and affordable, as well as listening to customers, helped secure its nomination. Store owner Andrew Soutar says, “Fairtrade is an indication of changing shopper behaviour and Pak’nSave Whakatane has quickly responded to it. We are delighted to receive the recognition as further reinforcement that we are meeting the needs and expectations of our customers. The increase in products stocked at both supermarkets reflects the growth in Fairtrade product sales throughout New Zealand. Steve Knapp, executive director of Fairtrade Australia and New Zealand says, “Combined retail sales in New Zealand have risen from around $10 million in 2008 to $17.5 million in 2009. New Zealand is one of the fastest growing markets for Fairtrade labelled products in the world; however the range of products currently available is limited to coffee, tea, chocolate, bananas and cotton. In the UK there are more than 3000 products certified as Fairtrade. Steve Knapp says, “The products are there, from pineapples, orange juice, peanut butter to flowers. If Kiwi consumers want to buy one of these Fairtrade products they need to let the supermarkets know. They will listen.” l

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NZTE appoints new food and beverage director Dieter Adam is New Zealand Trade and Enterprise’s new director, Food & Beverage/ Biotechnology. He is responsible for NZTE’s Food & Beverage and Biotechnology focused activities, including the Food & Beverage Taskforce. After training in Germany and Denmark, Adam started his career as a research scientist and academic in the area of plant biotechnology. He went ’commercial’ in 1994, joining the New Zealand operations of US-Forestry Company Rayonier as its geneticist/R&D manager. In 2000 Dieter joined Hamilton-based Livestock Improvement Corporation (LIC) as its R&D manager and subsequently group general manager Innovation. During his time at LIC Adam helped to set up Boviquest, LIC’s bovine genomics joint venture with Fonterra, was instrumental in LIC gaining Bronze and Silver Business Excellence Awards in 2002 and 2005, and led business development activities in China, Malaysia and the Americas. In 2006 Adam set up his own consultancy company, working with a number of larger companies and organisations in the primary and food and beverage sectors to develop their strategic plans and increase returns on their investment in innovation. l

New general manager, retail Foodstuffs (Auckland) has appointed Rob Chemaly as the new general manager of retail. Chemaly joined Foodstuffs in early 2003 as part of the Strategic Projects team and in 2005 was appointed to the role of general manager Strategy and New Ventures. During this time he was responsible for the successful inception and establishment of Foodstuffs Fresh and for leading many important initiatives including the acquisition of Liquorland and the structural transformation of Gilmours into an owner-operator business model. Chemaly was selected after a rigorous recruitment process that spanned the USA, UK, Australia and New Zealand. He brings 15 years of experience in retail and a background in law to the position. l

Medsafe ban The busier the family, the more convenient the supermarket option appears. So the decision made by Medsafe to ban the sale of cough and cold medicines intended for children under 12 years old has been met with resistance. Katherine Rich, chief executive of the Food & Grocery Council (FGC), says the decision will deny parents of sick children ready access to cough and cold relief and force them to pay up to 147% more in pharmacies for the same product. “It is disappointing that Medsafe’s Medicines Classifications Committee, which prides itself on evidence-based decision-making, has made this recommendation when there is absolutely no evidence that there is any safety issue in New Zealand or internationally. It seems to be a case of ‘Britain’s done it’, so should New Zealand. “Kiwi parents have been using these coughs and colds remedies safely for generations. Any evaluation of adverse reaction data from the Centre for Adverse Reaction Monitoring and the New Zealand Poisons Centre shows that the products available in supermarkets are not the ones causing any safety issues. “Parents who have been quite happy in the past to buy these products from supermarket shelves will be hit hard in the pocket. Some cough/cold remedies currently available in supermarkets are 50% to 147% more expensive in pharmacies for the same product. “It was clear from the beginning that Medsafe was hell-bent on pushing this through. Despite 11 out of 13 detailed submissions being against this move, had it not been for the minister rejecting their more extreme proposal to ban all adult formulations from supermarket shelves as well this could have been a lot worse for consumers. “This decision will greatly reduce access to these remedies for many New Zealanders. Medsafe has not given consideration to the fact that pharmacies often have only limited hours and in many rural communities there aren’t pharmacies at all,” said Rich. l

Nosh treat The winners of Nosh Food Market’s delicious food hampers are Paul Rattray of Foodstuffs, Dunedin and Kristen Sherriff of the Contract Bottling Company in Manukau. The answer to the question: ‘How many Nosh stores are in New Zealand?’ was five. l

Experts in Contamination Identification From simple to high-tech analysis, AsureQuality has the expertise to identify foreign materials, microbiological and chemical unknowns, and their possible source. Our forensics approach gives you answers, faster, to help get things back to normal. FOR MORE INFORMATION CALL CUSTOMER SERVICES T. 0508 00 11 22 W. WWW.ASUREQUALITY.COM

giveaway winner

juLY 2010 FMCG

news Food industry excellence recognised At the end of June, the president of the New Zealand Institute of Food Science & Technology (NZIFST), Dave Pooch welcomed over 300 guests to the inaugural NZIFST Food Industry Awards for Excellence in the Food Industry. In introducing the new awards he said: “It is great that we about to identify, recognise and acknowledge excellence in the work of individuals, groups and companies. All too often the achievements and brilliance of our food industry people go unnoticed by the wider industry family.” The NZIFST Food Industry Awards recognise excellence in four areas: eco-efficiency, service and supply, innovation, and leadership. Gerry Townsend, chief judge, said: “Our judging panel was greatly impressed by the quality and detail of the applications. It made us proud to be a part of the New Zealand food industry as we read about the outstanding achievements made by those industry individuals and groups nominated for these awards. “The applications for the four awards were quite diverse – making the judging job more difficult. But without any tantrums or hissy fits, our judging panel made our collective selections.” The award winners in each category receive a plaque and a cheque for $2000.

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From left to right: Jonathan Cox, Mars PetCare NZ; Dave Pooch, president NZIFST; Glenda Gourley, The Chip Group; Paul Vickers, mbar; Aaron Corley, Coca-Cola Amatil.

NZIFST Food Industry Awards winners: Ecolab Award for excellence in eco-efficiency in the food industry The Eco-Efficiency Award recognises businesses achieving environmental resource efficiencies along with waste reduction. Winner: Coca-Cola Amatil (NZ) for its 99% recycling goal. Finalist: Silver Fern Farms (Christchurch) for its change from coreboard/ polystyrene to 100% recyclable cardboard dunnage. NZIFST Award for excellence in service to the food industry The Excellence in Service Award is to acknowledge and recognise service suppliers to the Food Industry and is awarded based on their innovation or customer service. Winner: mbar Limited for its service of vacuum pumps and blowers. Finalist: The Chip Group for improving the nutrient profile of food service chips.

NZIFST Award for excellence in innovation in the food industry This award acknowledges a significant new development in a process, product, ingredient, equipment or packaging, which has been commercialised within the last 12 months. Winner: Mars Petcare NZ for its Whiskas Tasty Textures. Finalist: Kiwi Ice Cream Company for its Premium low fat, low carbohydrate ice cream with added health benefits. Orica Chemnet Award for excellence in leadership in the food industry This award recognises an individual for their leadership in one or more areas or events. Winner: Glenda Gourley (chairperson, The Chip Group) for leading the improvement of the nutrient profile of food service chips. Finalist: Don Tweeddale (Apiarist, Taihape) for his Manuka Honey initiative. l

n ews

First pick This month’s cover highlights Kim Crawford First Pick, which will be replacing the Kim Crawford Diamond Series as from 1 July 2010. Great grapes, expressive winemaking and an approachable style make this range of Kim Crawford Wines the ‘First Pick’ for any occasion. The new packaging was strongly endorsed by consumers in qualitative and quantitative research, with Robert Sinclair, Constellation New Zealand market manager

saying: “The introduction of Kim Crawford First Pick ensures that we are delivering great value to our shared customers. The fresh and contemporary new look reinforces the wine quality and improves brand presence on shelf.” Constellation is offering FMCG readers a sample of Kim Crawford First Pick. Email editor@fmcg.co.nz with the answer to the following question: What range will replace the Kim Crawford Diamond Series in July? l

Take your management skills to the next level with New Zealand’s premier management and leadership publication. A subscription to FMCG’s sister publication, NZ Management – The Leaders’ Magazine, will bring you inspirational interviews with the country’s foremost business leaders from a broad spectrum of industries. You’ll gain insights into the best New Zealand has to offer in a clear, straightforward style that delivers exactly what it promises – practical ways to help you do your job better.

As a special offer to FMCG readers, we’ll give you a 25% reduction off the first year’s subscription AND we’ll also give you your first three issues free. That’s a saving of $40.00 – but only if you take up this offer before the end of August 2010.

So subscribe today: just phone Mediaweb on 09 845 5114, or email subs@mediaweb.co.nz and mention that you’d like to be doing your job better. We’ll take care of the rest.

OUR TOP 2 2OO OO COMPANIES COM – PAGE 69

Anniversary A nniverrsa Issue

2O 2 O

Celebrating 20 years ars of of forward foorw warrd thinking thin in business

YEARS EARS OF TOP

2OO

Executive of the Year: Rob Fyfe p42

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n a rgo n

Trina Snow, executive director, NARGON.

GST still a political issue International case studies suggest keeping it simple makes sense.

Finance Minister Bill English confirmed on 20 May that GST would rise from 12.5% to 15% on 1 October 2010. This announcement came as no surprise as the Government had clearly signalled as early as February that it was contemplating this increase in order to pay for the personal and company tax cuts it wanted to introduce. Labour immediately ran an ‘Axe the Tax’ campaign which made it politically impossible for National to backtrack, even if they had wanted to. The campaign’s name attracted considerable discussion because Labour did not promise to ‘axe’ GST and indeed was reluctant to commit to even axing any increase. Nevertheless, Axe the Tax served its political purpose and a number of voters are unhappy at National’s decision to increase a tax everyone pays every day. Nargon’s advice on the GST issue is simple. All stores should already be working to ensure there is a seamless transition at the start of October. This involves checking all aspects of the pricing system and testing all changes thoroughly. The last change to the GST rate was a long time ago – 1 July 1989 when it went from 10% to 12.5% – and many have forgotten the difficulties some retailers had because they were not properly prepared. The surprising aspect of the GST debate is that a number of groups are still advocating for exemptions, usually for so-called ‘healthy’ foods. MP Rahui Katene from the Maori Party has introduced a Goods and Services (Exemption of Healthy Food) Amendment Bill. The bill was immediately mocked by Labour’s Trevor Mallard who correctly noted that an army of inspectors would be needed to define what is healthy and what is not. That is precisely the situation in many countries over-

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By Trina Snow

seas. In Australia, there are hundreds of pages of exemptions and explanations but the courts were still forced to decide if a mini-ciabatta was a bread or a cracker for GST purposes. In Britain, it cost millions of pounds in legal fees to determine whether Pringles were crisps or biscuits. Nargon believes that New Zealand should retain a clean, broad and simple GST system. Indeed, since 1990 both major parties have been in agreement on this issue. However, Labour Leader Phil Goff has recently hinted that Labour might look at scrapping GST for fresh fruit and vegetables.This distinction, he argues, would be easy to enforce. However, problems quickly emerged with this suggestion. A journalist asked if salted peanuts would count as fresh vegetables. Goff replied “anything that’s processed is out” which cause problems. Economist Bernard Hickey said the suggested exemptions were “lame” and would open “loopholes to drive trucks through”. It would also destroy the simplicity of the current GST system. While in power, Labour consistently (and correctly) opposed exemptions for items such as food. Goff is on record saying he favours a comprehensive low rate of GST. His argument now is that the 15% rate will hit low and middle-income people harder, so exemptions should be considered again. Nargon remains unconvinced that a workable GST exemptions regime can be developed and introduced. Certainly, the evidence from Australia and Britain suggests that it cannot, even with the best intentions from the politicians. Raising GST is always likely to be unpopular, but at least the increase is being applied across the board and should be largely offset by personal and company tax reductions. October 1 is going to be enough of a challenge for retailers without having to wade through a big guide about which foods are healthy, fresh or unprocessed for the purposes of GST.

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Traffic labelling the lazy option Careful thought and rigorous analysis is required before decisions can be made. By Katherine Rich Last month in FMCG,Trina Snow of Nargon wrote an excellent piece on the Council of Australian Government’s labelling review which is currently underway. The review is an ambitious piece of work which endeavours to seek some clarity on what the best methods of front-of-pack labelling might be. I hope the panel members aren’t regretting their agreement to be part of the project, because after 6000 preliminary submissions followed by the thousands of additional substantive ones submitted in May, it would be understandable if they developed a bout of front-ofpack labelling ‘fatigue’. It will be interesting to see what conclusions are drawn and how the panel draws together views which seem as diverse as chalk and cheese if the public consultation meeting held in Wellington is anything to go by. The Food and Grocery Council and our Australian sister organisation the AFGC have both made substantial submissions, which we are confident reflect a strong and practical approach to labelling based on our members’ experience of developing and marketing products. It’s likely that our submissions will contrast dramatically with other submissions from public health activists and community groups who demand a level of detail of information that’s simply not possible to put it all on a limited-sized square. As readers will be aware amongst the public health fraternity ‘traffic light’ labels are de rigueur at present. For some they are the silver bullet solution to New Zealand’s obesity problem. Colouring product labels green, orange and red to communicate how healthy a food is and how often it should be eaten is deceptively simple, but there are some disturbing flaws. The prob-

Katherine Rich is the CEO of the New Zealand Food & Grocery Council. Email: Katherine.rich@fgc.co.nz

lem is that for many people red means ‘stop’. Reputable European research found that many people thought a red light meant a food was best avoided altogether instead of being eaten occasionally. Just as pigging out on green labelled foods won’t lead to a balanced diet, neither will avoiding all red labelled products. Milk, cheese, honey, raisins would all most likely attract red labels, but each of these foods is important to a balanced diet. The support of traffic light labels is lazy thinking which tends to be supported by lazy research. Here’s one example. The study I refer to was a major one which included over 17,000 shoppers both in-store and at home. Contrast this huge and diverse sample of shoppers with the recently publicised New Zealand study promoted by academics of Otago and Massey Universities as the latest evidence to support traffic light labelling for food. The work concluded that parents found that shopping in supermarkets with children was distracting (no kidding) and that parents didn’t always have time to read labels (welcome to parenthood!). But it’s not the conclusions, but the research design I take issue with. The study, heralded as another reason for the Government to look at traffic light labelling, interviewed only 15 people, probably from Palmerston North. Within the FMCG sector we are keen to debate the facts and new labelling thinking, but it becomes rather tiresome when such weak pieces of work are held up as conclusive findings and reported with headlines beginning “new research says...” At best speaking to 15 people constitutes a focus group, at worst it’s really no more conclusive than a fireside chat with a few random people, so academics should be careful in the way they present such work. There are some serious decisions to be made over the next year, which will have a huge impact on the way food products are labelled and presented. Our sector needs to demand that decisions are based on fact, practicality and decent academic work. We look forward to the results of the Food Labelling Review. juLY 2010 FMCG

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

IN ITS PRIME

Green kiwifruit, persimmons, lemons, limes and mandarins. Yams, chokos, parsnips and carrots, main crop potatoes, excellent fennel bulb and celeriac and Brussels sprouts. Kahawai, piper, hoki, ling, blue cod and tuna. The Pacific oysters just get better and better.

SHOT TO BITS

Feijoas after an indifferent season.

FISH Now that the albacore season is over many fisherman are working the blue cod fishery so the Auckland market may even see some if you guys down south relax your exclusive claim to it. Blue cod has beautifully flavoured if delicate white flesh and the further south they are caught the better. This is also the season for blue moki, which is well priced at this time of year and hoki which is always well priced. Hake is quite lovely eating if treated gently. The short fresh season for this delicate fish starts this month. It’s still a good time for those big kahawai, and I stick by my guns; as good at least as any other fish in the sea. The fresh season for ling started in June and will run till November. The frozen and smoked product is also available. The fresh orange roughy season is not far away so don’t worry if you have people who think it’s a great fish, you will soon be able to flog them some of these 125-year-old fish, fresh. Yep, those deep sea trawlers will again be scraping the sea floor clean of everything that lives. Yum yum. Winter is the best time for the forgotten and delectable little piper. There is plenty of salmon – quinnat (sea cage) – available and all three producers have good quality fish. Yes, I am still pushing the fantastic, common trevally, which is usually well priced. The main season is over so there is less in the market. But, by the same token at the moment, this fish is of markedly better quality as trevally

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at this time of year are caught using ring nets around inshore reefs. Fresher, less squashed and tastier. Warehou is a good southern species and this is available in winter at a very good price. MEAT Generally it is not good news on the red meat front in the short term for the FMCG sector. Sorry again guys. The lamb schedules are on their upward winter rise with most companies offering over $5 a kilogram, which though high is still about $0.48 behind last year. The currency and economic situation in Europe will determine whether prices climb to last year’s levels. The sheep farming sector in New Zealand believes that a return to at least last year’s level will be needed to slow the exodus to other land uses. Mutton prices continue to rise to record levels. In the south, many ewes are selling for over a $100 in the sale yards. Store lamb prices seem to have peaked, but primes are still significantly lower in value at northern sale yards. Beef prices are very strong with winter demand for prime steers growing at the sale yards and cold wet conditions flattening demand for store stock. Local trade prices for beef are $0.30-$0.40/kg ahead of last year and still climbing. Cervena is a reasonable red meat option as the price is at least steady and looking as if it will be a while before it moves up. The prices for cervena are now $1.66/kg behind last year, and the gap is widening. Good news if you are buying it, bad if you are growing it. FRUIT All the New Zealand seasonal apples are still good quality so we don’t need any imported rubbish just yet. Watch the quality of avocados until the new season’s fruit comes onto the market. New Zealand lemons are back thank goodness. New Zealand mandarins are now. Early New Zealand oranges will start to show up shortly, as will limes. Now is the time to push kiwifruit as the main crop is in and prices are remarkably good. There will be a New Zealand pear or two about, but they are deteriorating

from now on. The nashi pear will hold on a little longer. Persimmons are another good early winter fruit. They finish in July but are good keepers so they will be around for a while. Chestnuts are in season and hazelnuts are starting. If people see them with your produce they will likely buy them. Imported longans and lychees are available at this time of year for that something a wee bit different. Sometimes considered the poorer cousin of the illustrious lychee, the longan is very popular in other countries in its own right and is a very fine fruit. VEGETABLES It is now time for a root. Yams are definitely a good option in winter as are carrots, parsnips, swedes, the turnips (including Kohlrabi), celeriac, and main crop and Maori potatoes. Fennel bulb, onions, and of course leeks will all be in the best condition. In fact, this is the time to buy in all the roots, bulbs and stems that grow on or under the ground as they are all at their very best and very good buying. These vegetables will also nowadays include the Jerusalem Artichoke as more and more customers are catching on to this wonderful root vegetable, due in part, I suspect, to being more exposed to them in restaurants. Brussels sprouts are at their best and the cost is coming back. Capsicum and aubergines are mostly imports at this time of year. There will be a few New Zealand hothouse fruits around but they are expensive. Chokos are slowing but keep well, so you will still be able to get them until mid August or so. New Zealand garlic is getting scarce but there is plenty of the cheap Chinese rubbish about. The imported American stuff is much better quality, but you have to pay for it.

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Consistency is key New Zealanders are fortunate enough to enjoy naturally-grown produce. By Jane Allan Hereford Prime Beef was the brainchild of Laurie Paterson and the late Don Goodall, who wanted to provide New Zealand beef consumers with a quality beef-eating experience and create demand for Hereford Genetics. They approached a local processor in Invercargill, Bowmont Wholesale Meats, owned by the Flynn family, which embraced the idea, and ‘Hereford Prime’ was born. All beef under the Hereford Prime label has to fulfil certain criteria post-harvest, pertaining to factors such as fat, colour, marbling and pH. This ensures consistency within the supply chain. Ageing is also an important component in creating a quality product.Air-dry ageing of meat has been around for generations. It causes the outer surface of meat to become blackened in appearance during the oxidisation process and serves to enhance flavour. Bowmont Wholesale Meats in Invercargill still uses this dry-ageing method, where the carcass is hung on the bone in a controlled chiller environment for two weeks before being further processed. It is a rare but impressive sight when you walk into the chiller – a carnivore’s utopia. Dry ageing also adds value for the end user, whether consumer or chef, as it reduces drip loss. As the carcass ages on the bone for two weeks, dehydration occurs, resulting in less shrinkage during cooking. More commonly used today, however, is a wetageing method using cryovac packaging. The carcass is boned into the required cuts and aged for 14 days. This enables enzymatic changes to soften connective tissue and intensifies flavour. All product carrying the Hereford Prime label is treated in this way, carried out by a family-owned business, which enables ownership of the programme. Watching the movie Food, Inc produced to enlighten the American consumer of the shortcomings of their food chain, made me realise how fortunate New

Jane Allan is the marketing manager of Hereford Prime.

Zealand consumers are to dine on some of the finest naturally-grown produce in the world. In this age of time-driven consumer consumption, the values of flavour and nutrition are easily forgotten. Hereford Prime is therefore particularly supportive of the Steak of Origin competition, run by Beef + Lamb New Zealand. It has created fantastic exposure for beef producers around the country and an opportunity to promote the quality of their product. The marketing profile this competition gains for the whole beef industry is to be commended. Hereford Prime is the only branded beef programme in New Zealand to have been a finalist every year, reinforcing our branded programme as offering the New Zealand consumer a consistent ‘beef eating experience’.

Food, Inc explores the shortcomings of the American food chain. New Zealanders are comparatively fortunate. juLY 2010 FMCG

featu re

The future of food Supermarket guru Phil Lempert recently visited New Zealand at the invitation of the Food & Grocery Council. Pauline Herbst was on hand to record his insights.

hil Lempert, self-proclaimed Supermarket Guru, pulls out his iPad. “This is the future. This is empowering consumers,” he says. The business of food can be viewed through many a lens: the specialty, origin-focused romance with farms; or the ‘just in time’ supply chain and logistics view where food is just another product in a long chain leading to profit. It now seems that the view through a screen is promising greater clarity for consumers and a way to combine both. Lempert quickly accesses one of the many apps on his iPad, Seafood Watch. “This to me is the future of food, when a consumer can go into the store and zap a barcode on his

phone and find out anything about the product. Back to the name of the farm and the person that owns that farm, what the plastic packaging is, what the politics of that company is, if he agrees with that. In sustainability that is becoming more and more important.” Amongst the many syndicated radio shows, columns, blogs and television appearances LA-based Lempert does, he still finds time to review five products a week. Using a recent product he reviewed, tilapia, Lempert gives a running commentary. “I check the country of origin labelling, which says ‘product of China’, so I go to Seafood Watch and look up ‘tilapia from China’. This little red thing says ‘avoid’, so I juLY 2010 FMCG

The future of food Phil Lempert with the future of food.

From L-R: Ricardo Simich, director One Agency; Phil Lempert; Katherine Rich, ceo FGC; John Blakey, ceo, Competenz.

press that button and it tells you why to avoid it.” Whether seafood or bottled water, anything sold from the supermarket will eventually be searchable online and as Lempert adds, “with GPS technology I can scan the price list from different stores within walking distance”. His point is that with technology “the consumer is now the commander. Years ago it was the brands, then it moved to retailers, now it’s the consumer. Because of sustainability and traceability, consumers and supermarket buyers want to know more.” So much so that Lempert predicts the industry is very close to seeing cameras installed in growing fields so that supermarket buyers and consumers can bring up and look at best farming practices. “None of this is new technology,” he says. This is Lempert up close and personal, in the intimate setting of one of the Langham’s 22

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conference rooms where he, FGC CEO Katherine Rich, and John Blakey, chief executive of sponsor Competenz, discuss the future of the industry prior to his presentation.

The man behind the guru Silver-haired and perfectly groomed, Lempert looks every inch the media professional and not at all like a dairy farmer, which is what his grandfather was. The family food tradition carried on through his father’s work as a food manufacturer, distributor and broker and then to Lempert, who has analysed consumer behaviour, marketing trends, new products and the changing retail landscape for the past 25 years. His trendspotting abilities are lauded throughout America, with Lempert appearing numerous times on The Oprah Winfrey Show, 20/20, CNN, CNBC, Discovery Health and MSNBC and interviewed by USA Today, The New York Times and Forbes.

He is the food trends editor and correspondent for NBC News’ Today show, makes monthly appearances on ABC’s The View, has a new PBS series for 2010, Phil Lempert’s Food Sense and is a columnist for a number of trade food titles. He’s even hosted a weekly radio show, Before You Bite with Phil Lempert, for 13 years and published several books. It makes you feel out of breath just reading about it, never mind actually ticking off that list of accomplishments personally. Suffice to say the man has well and truly earned the title Supermarket Guru. He’s also been a pioneer in new media, setting up SupermarketGuru. com in 1994 (which now draws over 12 million eyeballs annually) and the virtual Phil’s Supermarket in 2007. This was the first supermarket to exist in Second Life. What made him physically travel over 10,000 kilometres for a 48hour stint in Auckland? Other than New Zealand’s food, scenery and

featu re

wine, he says: “I’ve never been invited anywhere by a former member of parliament,” referring to FGC CEO Katherine Rich. Rich says: “Phil Lempert has provided invaluable building blocks for informed debate in the grocery and political arenas. His first visit to Australasia will have a ripple effect on how we view our market share worldwide.” Just what did he reveal at the June lunch? Like any professional speaker worth their salt, warm anecdotes served with a splash of humour and spiced with insight.

Lunch with Lempert “I want you to close your eyes,” says Lempert. One or two do but that isn’t good enough. “All of you,” he repeats, until the room shuts out the light and lets his voice dominate. His next words are paraphrased for the sake of brevity; after all, it’s hard to read with your eyes closed. “I want you to picture an elephant. Consumer trends are elephants and our marketing arsenal is like bows and arrows. We spend all our time chasing that elephant and all we’re left with is an arrow in its butt. We need to track that trend, get in front of it, dig a big hole and capture it.” As far as Lempert is concerned, we need to be thinking past current trends like gluten free to what’s next. This is the Supermarket Guru in full flow, evangelising about food to a room of over 300 industry leaders. Entitled The consumer on the road to recovery, the challenges and opportunities, his presentation highlights some of the reasons the food industry needs to take its first steps on the ‘road to recovery’: consumer needs are changing and evolving, as is the retail landscape and technology and

social networking is creating a new information paradigm. “If we eat better, we’re going to live better, finally we’ve made that connection,” he says, explaining that US consumers have declared a war on food, headlined by the statement: “I don’t want to die.” “No one says ‘I want heart disease’, ‘I want to die a painful death from cancer’,” says Lempert. “If we don’t correct that we are headed, from a healthcare perspective, to disaster. There is no way we can afford this much diabetes, this many cancers, this much heart disease.” The change in powers, war, the economy, the housing market slump, food safety, food and fuel prices and an increasing anxiety are stimulating current trends, which are a ‘greener’ world, knowing where products come from and the importance of value. “In the US a person buys food in seven different categories each and every month. So they’re going to convenience stores, supercentres, Walmarts, supermarkets, the whole lot. People are starting to recognise that if they do a little more they can not only save money but get better value and that’s what shoppers are looking for.” Lempert characterises value as a combination of quality, service, relationships and price. “Those behaviours that people have learned over the past three years will maintain over their lives, they will be shopping around more, and reading labels,” he says. Having visited a New Zealand store on his trip, Lempert, while hesitant to critique it, did say: “The store we were in was immaculate, but I would have liked to have seen more interaction with consumers on

the floor, more sampling, more ways to reach out and communicate with shoppers. I think that’s critical.” He cited US specialty grocery store Trader Joe’s as an example of the benefits of customer interaction. “These are the leaders that in our downturned economy continue to do well. The traditional large supermarket that just focused on price did horribly. For me, the future of retailing is a large traditional store (40,000-50,000 square foot), full service, dotted around with about 14,000 to 16,000 square foot stores like the Trader Joe’s model, that really specialise in a specific area.”

The food industry has changed and it continues to change. Consumers will accept nothing less.

The opportunities for New Zealand Brandishing a clear packaged corn on the cob as fervently as he did the iPad, Lempert is clearly excited by his latest find. “This is what we need more of,” he says. “Healthy, convenient fast food. Do I think we can do it? Absolutely. juLY 2010 FMCG

The future of food

Global Trends 2010

Lempert’s 3 ‘Cs’

According to Lempert, the following trends will dominate the future of the food industry: • Food obsessions will continue and grow • Fad diets will always be a factor • Globesity shifts: from awareness to consequences • Processed foods = disease • Pure, fresh, natural = health • Knowing where our products come from • DIY doctoring: functional, peptides, probiotics • Handheld devices set real-time information

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Cater…

to health and wellness

Create…

a convenient shopping experience

Celebrate… food, preparation and taste

Do I think we will do it? That is the question. This is corn on the cob, already cooked and individually wrapped so you can microwave them. In the US we’ve focused on bagged lettuce, but this is the future where we can make foods simpler, healthier and more convenient and tasty. And taste is number one. We’ve seen healthy foods that taste horrible. You can’t have health without good taste.” Lempert is also complimentary about the “brilliant packaging” on the corn. He then holds up a box of Hubbards cereal. “The labelling is more advanced here than in the US. One of the debates in the US is how do we communicate to consumers about health? Your labelling is much more specific – I applaud that.” A case in point is that of the costly Smart Choices Program in the US. Check the website and it states the “front-of-pack nutrition labeling program is not currently conducting active operations pending the outcome of the FDA’s front-ofpackage rulemaking process”. What happened? Sugar-laden cereals like Froot Loops certified for the tick because of its vitamin content. As a blogger on triplepundit (a new media site aiming to monitor triple bottom line reporting) said: “Ellen T Kennedy, a researcher from Tufts who presides over the ‘Smart Choices’ board (apparently unpaid), defended products endorsed by the label in a New York Times interview, arguing that sugary cereals are a better choice

than a donut. Right. And a donut is better than a bag of crack. Perhaps they should reconsider blacklisting fried, sugary confections.” Simply proving Lempert’s point that the consumer is becoming more interactive, more informed and less likely to simply accept what they are fed. “Now is a wonderful moment in time for New Zealand,” says Lempert. “Sixty percent of all produce in the US comes from China. If you look at New Zealand lamb, the wines, the dairy, from a US standpoint this is of a wonderful high quality and taste. It’s a good opportunity to bring this to the US instead of from China, which is also far away. That’s one of the objectives I have today.”

What’s your penguin? “I was tired, I was cranky, I opened my shower curtain and there in the bath was a giant red penguin.” Only a jetlagged Lempert can have a retail lesson to give from being confronted with a man-sized, red plastic penguin. His boutique hotel distributed 12 of the hot avians, rewarding finders with a bottle of wine. Lempert’s challenge is to “leave the New Zealand food industry better than when you found it”. FMCG has one copy of Phil Lempert’s latest book to giveaway, courtesy of the FGC. Simply email editor@fmcg.co.nz and tell us what your penguin is. What differentiates you from the herd?

What’s Hot

Lovingly created to be soft, moist and undeniably the best, these easy to make mixes make decadent treats for all to enjoy. Not only are they gluten and dairy free, they also have the added benefits of being soy, nut & optional egg free, and contain no artificial colours, flavours or preservatives. Chocolate Cake - rich, soft and moist, Includes Icing Chocolate muffin - these little gems are also egg free perfect for lunchboxes Chocolate Cookie - can also be adapted to make mini chocolate brownies. For more information contact Silvana on 09 5285026 or email info@lovecake.co.nz Proudly New Zealand made.

GF TREETS GLUTEN FREE FROZEN RANGE gf treets is an innovative new range of gluten free battered products. Perfect for stores looking to build a gluten free frozen category the range includes Gluten Free Battered Fish, Southern Style Coated Chicken Strips, Mini Hotdogs and Donuts. The range has been enthusiastically embraced by gluten intolerant consumers. For more information please contact the Sales Manager: Golden Goose Foods

Hellers – tasty new bite size ‘Sausage Bites’ Here’s another great innovation from Hellers tasty new bite size ‘Sausage Bites’. Trialed at the The Food Show and Ellerslie Flower Show, they were a big hit! They’re available in 3 delicious varieties; Spicy, Honey and Cheese, and they’re ready to eat – hot or cold. They’re perfect for entertaining, snacking or for kids’ parties and come in handy 250g packs. Another great innovation from Hellers to help grow your sausage sales even further. For more information contact Kevin Calder National Sales Manager at 03 375 5031 or email kevin_calder@heller.co.nz

arataki winter warmer Warm up and ward off coughs and colds this winter with this hot, deliciously natural, winter remedy drink. In a cup put 2 heaped teaspoons of Arataki Manuka Honey, 1 tablespoon lemon juice, fill with boiling water and stir until honey dissolves. For ginger lovers add a little fresh ginger too. Enjoy!

What’s Hot

LOVE CAKE COmpany introduce a new GLUTEN & DAIRY free baking mix range

Arataki Manuka Honey is available from supermarkets nationwide.

Phone: 03 384 4039 Mobile: 021 226 6469 Email: info@gftreets.co.nz Web: www.gftreets.co.nz

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cate go r y c h e c k

chocolate scales up THE BREAKDOWN Current MAT to 23 May 2010

PREMIUM & DARK Consumer chocolate tastes are becoming ever more discerning with Dark and Premium growing in popularity. “People are switching from standard Blocks to Premium,” says Ken Davis, business manager at Brandlines. “There is a 50% increase in share in Premium, just because of awareness of the segment. There is a lot of growth driving it. People are starting to understand the percentages of cacao, what chocolate should look like, and what it should smell like. Is it melting in your hand? Does it have a nice, glossy sheen?” he says. The company distributes Lindt Chocolate in New Zealand which it reports is: “continuing to grow at a rapid pace in the New Zealand marketplace while adding value and profit26

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ability to the Boxed, Block Chocolate and Easter categories, as consumers trade up to premium chocolate”. One of three new flavours from Lindt, Excellence 50% Cocoa, will trade up the curious and dark dabblers into the Premium Dark segment and persuade milk lovers to trial dark at low risk with its smooth and creamy texture. This is an observation David Cunningham, business manager confectionery for Wilson Consumer, has also made. “With regards to recent market activity we have seen a continuation of consumer migration to premium brands, as well as a continued increase in consumers’ involvement in the purchase decision.” Late last year Guylian launched a new Extra Dark Seashells range.

Total chocolate confectionery: $243,709m. Value % Chg vs YA 7.8 Moulded chocolate: $110,295m. Value % Chg vs YA 13.9 Enrobed bars: $47,158m. Value % Chg vs YA 4.9 Easter confectionery: $26,572m. Value % Chg vs YA 6.2 Chocolate self lines: $23,340m. Value % Chg vs YA 7.8 Chocolate assortments: $24,054m. Value % Chg vs YA -5.0 Sugar conf family bags: $8462m. Value % Chg vs YA 1.1 Sugar conf card/tub packs: $1404m. Value % Chg vs YA -21.7 Sugar conf handy bags: $900,444. Value % Chg vs YA 22.5 Sugar conf mini bags: $563,822. Value % Chg vs YA -21.4 Sugar conf fun packs: $488,637. Value % Chg vs YA 20.0 Sugar conf jumbo bags: $354,502. Value % Chg vs YA 175.2 Sugar conf bulk bags: $116,442. Value % Chg vs YA -14.9 * ACNielsen New Zealand ScanTrack (Databank)

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rich cocoa notes are perfectly balanced by the slight tartness and deep fruit flavour of delicate blueberry pieces.

Lindt Blocks • Number 3 in TKA MAT

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a unique and dramatic combination, surprising on the palate, as the salt accentuates the flavour and sweetness of the cocoa.

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Made of 74% cocoa dark chocolate, this range recently won the Superior Taste Award (3 stars) from the renowned International Taste & Quality Institute. The competition scrutinises products submitted from around the world. Guylian Extra Dark’s 3 star evaluation came with an average score of over 90% from the 120 participating chefs. To further support this flavour Robert Harris NZ is offering a major on-pack giveaway. For a limited time with each pack of the Premium Robert Harris 100g range purchased, customers will receive a free 65g box of Guylian Extra Dark chocolate. Whittaker’s is the only major chocolate company in New Zealand that imports cocoa beans, roasts and refines them and controls the whole manufacturing process “from bean to bar”. Philip Poole, marketing manager says: “The growth of Whittaker’s chocolate is evidence customers want chocolate with higher cocoa solids that have pure cocoa butter and no added vegetable fat.” Premium organic chocolate brand Green & Black’s is owned by Cadbury and its recent acquisition by Kraft further extends the premium brands Cadbury offers with Toblerone and Terry’s as an additional seasonal offer, with a range of orange and chocolate. Strange new flavours are on the rise. Two more innovative flavours to be added to the Lindt Excellence range in 2010 along with pack changes include Excellence Sea Salt. This “unique and 28

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challenging recipe” will surprise taste buds with an unexpected alliance of silky dark chocolate refined with the tiniest crystals of Fleur De Sel – a premium French sea salt. The other is Excellence Blueberry; a combination of blueberries and slivers of almond designed to encourage Excellence consumers to expand their repertoire.

BLOCKS & FAIR TRADE Whittaker’s markets a range of 250g Blocks, Slabs, Santé Bars and Chunks in supermarkets. In the Moulded Block Chocolate market,Whittaker’s has made “a quantum leap in sales and share in the past 12 months,” says marketing manager Philip Poole. Retail sales for the brand at the end of May 2009 were $17 million with growth of 62.7% pushing sales at the end of May 2010 to $27.6m. This in a market that only grew 12.2% (Aztec Moulded Block Market MAT). Whittaker’s share moved from 22.1 to 32.1 over the same period. “Consumers recognised the quality of Whittaker’s milk chocolate with the brand having 33% cocoa solids content and no vegetable fat. The result was a massive consumer move to Whittaker’s,” says Poole. In addition, the company launched two new 250g Block varieties: Dark Peppermint and Milk Madagascar. The Dark Peppermint matches the 72% Dark Ghana with a fresh peppermint fondant, while Milk Madagascar

is the first major chocolate block launched in New Zealand using beans from Madagascar. The beans give the chocolate a citrus note with hints of caramel and honey. Both varieties report success and a good reception from consumers. Whittaker’s Peanut Slabs, Santé Bars and Chunks have also shown strong growth in the Enrobed Chocolate market, with sales growing 20.6% over the past 12 months (Aztec Enrobed Market MAT) in a market which grew by 8%. Lindt Blocks also reflected great growth of 52.5% MAT in TKA, but it is Cadbury that is the market leader in Blocks, Bars and Gifting with some of New Zealand’s biggest chocolate brands. These include icons Moro, Pinky and the recently redesigned Milk Tray selection; family favourites like Cadbury Dairy Milk and Caramello; as well as offers like Favourites, Energy, Freddo and Crunchie. Over the past 12 months, innovation has included the successful launch of Cadbury Dairy Milk Bubbly, a light, aerated offering. Cadbury Dairy Milk Bubbly was the biggest confectionery launch in 2009, generating more than $2.4m in retail sales (ACNielsen Total Scanned Market + T2 YTD to 29/11/2009; Total Confectionery including Seasonal & Gum). An exciting addition to the range, new Cadbury Bubbly White aims to capitalise on the resurgence of the White Chocolate market to further accelerate sales in 2010.

chocolates

“A nd it mel ts, God forgive me, it mel ts ever so slowly on your tongue, and tortures you wit h pleasure.” Chocolat, 2000. Picnic Roast Almond Feast launched in February, growing Picnic brand sales to over +120% (ACNielsen Total Scanned Market +T2, Current Quarter, value to 25/4/2010). The launch was supported by a campaign reinforcing the real physical ‘eat and enjoyment’ of Picnic. Most recently, there has also been the arrival of Cadbury Old Gold Toffee Crunch to expand the dark chocolate range. More new products from Cadbury are due for launch over the coming months with the intention of creating further growth of the chocolate category. Nestlé Kit Kat is the number one sub brand within the Bar Chunky segment with 14% value share of Bar Chunky in Total Supermarkets, and growing at 27% MAT, well ahead of the Bar segment growth of 11% (ACNielsen Scan data to 23/05/2010). As market leader of this segment Nestlé continues to invest in Kit Kat

communication to shoppers and consumers through a broad spectrum of media including TV, press and online with the Working Like a Machine campaign. Also the market leader in white chocolate with 37.8% value share (ACNielsen Scan data to 23/05/2010), Nestlé Milkybar has recently launched ‘No Artificial Colours or Flavours’ to increase the brand’s appeal even more. The Take Time Back promotion launched in June to help consumers take time back in their busy lives through a ‘collect and redeem’ system. The impactful on pack graphics clearly communicate the promotion to shoppers to encourage incremental sales. Trade Aid brands, which can be found in New World and FreshChoice South Island, include 50g milk and dark bars, a 200g dark block and a 100g organic block with plans to introduce a 200g milk block in the next few months.

Justin Purser, food manager Trade Aid Importers, says: “Through the media and through greater promotion of fair trade by the likes of Trade Aid, consumers are becoming increasingly aware of the problem of child slavery within the chocolate industry, and they are consciously supporting fair trade chocolate suppliers as an ethical choice in greater numbers. This shift is reflected in Trade Aid’s own chocolate sales, and also the recent moves under consumer pressure by Cadbury and Whittaker’s to offer fair trade chocolate bars as options among their wider ranges. “Among the various fair trade chocolate brands which are now on the market, here at Trade Aid we’ve seen a clear preference by consumers to support our own brand. Customers like it that we’re a committed, 100% fair trade organisation which has the welfare of cocoa and sugar producers firmly at the heart of our

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cate go r y c h e c k business model. They also like the fact that we’re a New Zealand-based non-profit organisation and a pioneer of fair trade (we’ve been trading since 1973).”

BOXED & SEASONAL A box of chocolates has become the gift of choice for many occasions, from a simple thank you to a grand gesture of love. The New Zealand Boxed Chocolate market is worth in excess of $50m per annum (ACNielsen current MAT to 23/5/2010). Within Boxed Chocolate the Mainstream Boxed Chocolate segment makes up around 77% value share and declined at -5.3% vs MAT a year ago, whereas the Premium Boxed Chocolate segment has 23% value share, but is growing at a healthy 21% (ACNielsen current MAT to 23/5/2010). FNZ Brand’s Ferrero Rocher is among New Zealand’s biggest names in premium confectionery. Since it launched in 1987, the brand’s recipe for success has centred on offering a distinctive product experience, underlined by a commitment to connect with consumers. Deejay O’Dowd, trade marketing assistant for Ferrero distributor FNZ Brands, says: “The market for Boxed Chocolates is seasonal, with around two-thirds of sales occurring during the Christmas period. Other key trading periods such as Easter and Mother’s Day are becoming more important, growing their value contribution every year. Additionally, one of the strongest consumer trends in the category is towards Premium Boxed Chocolate, where value to the retailer is increasing with the introduction of new lines at higher price points.This is reflected with Ferrero being the number one brand in Premium Boxed Chocolates, growing at nearly 40% value sales versus year ago (ACNielsen current MAT to 23/5/2010).” The current product range for Ferrero includes Ferrero Rocher, a 30

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milk chocolate and hazelnut speciality. There is also Ferrero Rondnoir, a dark chocolate creation, and the lighter Ferrero Raffaello, made from an almond enrobed in milk cream, covered in a crisp wafer and lightly rolled in coconut. Finally there is Ferrero Collection, which is a selection of pralines including Ferrero Rocher, Ferrero Rondnoir and Ferrero Coconut Garden (similar to Raffaello).” The product comes in a number of specifically targeted pack formats for both everyday and seasonal periods, such as a Christmas tree shaped box and an Easter egg format. There are various pack sizes, from self indulgence through to impressive gifting to meet consumer needs all year round. With an extensive range of products Ferrero is committed to significantly growing its sales outside of seasonal periods. Ferrero adds value to the category through innovation and heavyweight above/below the line marketing and advertising investment. Lindt Boxed growth is 15.1% MAT in TKA. The Lindt Lindor Dark Assorted 150g has been added to the Lindor family with the same smooth centre in four flavours: Raspberry, Mint, Dark, and 60% Cocoa all encapsulated in smooth dark chocolate. Wilson’s has also built a strong presence in the Boxed Chocolate and Gifting segments with brands such as Guylian Belgian Chocolates, Hershey’s Kisses and Bars, as well as the seasonal lines that Turin offers with Baileys, Kahlua and Jack Daniels’ branded chocolates. “As with most aspects in society Boxed Chocolate consumers are becoming more involved in the purchase decisions as not only do they look to make the dollar go further, but also look to ensure they act as responsibly as possible,” says Cunningham. “Guylian continues to show strong growth in this difficult time, with the total Boxed Chocolate market growing at 5.15% (Aztec MAT to 23/5/2010),

while Guylian is almost double that at 10.3% growth MAT. The strength of this is based on same-pack growth as consumers appear to be responding to the value the packs offer per kilogram. Consumers appear to be identifying that the pack weight is often heavier than competitors’ similar size boxes. “Guylian has a very loyal consumer base which appreciates that Guylian roast their own hazelnuts in traditional copper kettles on site in Belgium.This allows Guylian to offer a unique tasting praline-filled chocolate which helps ensure Guylian continues to be the world’s favourite Belgian chocolates,” he says. New seasonal lines for Christmas will include the return of the ever popular strawberry seasonal flavours, as well as some new pack sizes and graphics. “At Wilson’s we continue to believe it is important to offer new seasonal lines as consumers are always looking for something out of the ordinary for that special occasion,” says Cunningham. Also strong for this key gifting period is Hershey’s Mint Kisses, first introduced last year. As the economy continues to show signs of strengthening,Wilsons is looking towards continued growth from Boxed Chocolates as consumers continue to appreciate the benefits of premium quality chocolate for any occasion. Nestlé Scorched Almonds hold 65% market share of the Scorched Almonds segment, delivering significant growth of 19.8% value well above the total segment’s growth of 7.2% (ACNielsen Scan data to 23/05/2010). The world’s number one selling after dinner mint, Nestlé After Eight boxed chocolates are delivering value growth of 2% MAT, ahead of Boxed Chocolates which are flat at -0.4% value growth MAT (ACNielsen Scan data to 23/05/2010). Chocolates will continue to tempt consumers and this category should see growth from new segments as consumers expand their palates.

sh ow

d o o F e n d i n F a l a e Z New

total of 240 satisfied exhibitors served up the best, latest, and most innovative foodservice, food retail, and hospitality products and services to 5734 excited trade visitors over the three days of the show – 15% more than the expected 5000 visitors. Tim Beck, marketing manager Foodservice, Fonterra Brands New Zealand, said: “Fine Food New Zealand 2010, simply put, was a world-class event, attracting both quality exhibitors and high-value visitors. It showcased the industry professionally, and is a great addition to the foodservice calendar. I look forward to the next event in 2012.” He was not the only one singing its praises, with Belinda Jeursen, executive officer, Baking Industry Association of New Zealand, saying: “Fine Food was clearly a success for the Baking Industry Association. Our baking competition was a very popular attraction and gave all those who entered the recognition they deserved for their efforts. It was the first time we have judged it live and it

went exceptionally well.We met a lot of potential new members for our organisation and were able to showcase our services to a wide variety of traders. There are hundreds more people who know who we are now and the benefits of this kind of exposure will flow on for us long after the show.” A special feature of Fine Food New Zealand was the inaugural Best New Product Awards, which assessed dozens of new food, beverage, foodservice, and hospitality products against a range of criteria including taste, visual appeal, degree of innovation, functionality, and value. The winners were as follows: • Hospitality Magazine Best New Hospitality Equipment Award Arc Distribution’s Slide Control, a silicon seal that stabilises glassware and crockery. • Food & Beverage Today Best New Hospitality Food or Drink Product Award Waitaki Bacon and Ham’s Pure Pork Sausage. • Supermarket News Best New Retail Product Award Tasman Bay Food Group’s Nature’s Harvest

The inaugural Fine Food New Zealand was a resounding success, exceeding expected visitor numbers and attracting excellent feedback from every quarter.

Organic Cookies. • Restaurant & Catering News Best New Foodservice Product Award NZ King Salmon’s Frozen Salmon Fillet Portions. Fine Food New Zealand 2010 organiser Dona White says:“North Port Events and Diversified Exhibitions Australia responded to calls from many sources for a trade show that would provide a truly high-quality, world-class showcase for the food, foodservice, food retail, and hospitality industries.The result has been Fine Food New Zealand 2010. “The future now looks bright for us to build on this new beginning in the years to come. We’re extremely pleased and grateful to the many great exhibitors who embraced this inaugural event and helped to make it the unequivocal win-win it has been. “Many thanks to everyone who exhibited or visited Fine Food New Zealand. Your support was the essential ingredient that has ensured the show’s success. We look forward to seeing you and many new participants in 2012.” juLY 2010 FMCG

Local is hot

Specialist food and beverage writer Keith Stewart looks to local fare.

rom China to Scotland, local is the hottest topic in international food right now. Hot enough for both European and US government agencies to fund local food marketing initiatives and for farmers’ markets to move from being romantic tourist destinations in ancient European villages to faraway places like New Zealand. It is not just foodies who are driving this phenomenon, but also regular suburban shoppers who frequent supermarkets. The latest research from Canada shows that 78% of consumers want to know where their food is grown, and 96% believe that ‘healthy’ equates to local produce. “Americans are more interested in food and agriculture than at any other time since most families left the farm,” said US deputy agriculture secretary Kathleen Merrigan in announcing the ‘Know Your Farmer, Know Your Food’ initiative on which the US Department of Agriculture 32

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is spending US$65 million in 2010 promoting regional food sources and farmers’ markets. In Europe, the link between location and specific food is so well understood that a new atlas of food geography was published late last year – the Qualigeo Atlas.This details the food production zones that are identified and protected as unique under European law. New Zealand is more like Europe, at least like the great food nation of Europe – France – than many imagine. Our range of available foodstuffs is best illustrated by fish common to the regions, just as it is in France – north is snapper country, tarakihi through the middle, then cod all the way south. A comparison in taste between Far North caught snapper and Southland blue cod should be enough to convince those who doubt the variety these long islands offer in terms of growing food on land or in the sea.

But what does this differentiation mean for New Zealand food? A lot if we are prepared to believe that our food and beverages can be the equal of the best in the world. Nothing at all if we insist on commodifying it the way our food industry has done for 140 years. For example, the creation of luxury cheese is the ultimate in added value to a dairy industry and its value is more credible and more substantial if it is based on the one thing than can neither be imitated nor traded away – location. Brie de Meaux fetches 500% more per kilogram in New Zealand than local ‘brie’ does, essentially because it actually comes from Meaux, the home of brie. Local brie is not fundamentally worse or better than Brie de Meaux, but it is not the genuine thing. Closer to home, if we take the wine industry as an example worth following (think Marlborough sauvignon blanc and Central Otago pinot noir), there is obvious potential for significant quality advances if we regionalise food

reg i onal fare

resources. Think also of the advantages for international marketing and the tourism resources such localised food production would unleash.

The real taste of NZ To increase the appreciation and consumption of New Zealand’s regional food resources, Mediaweb, publisher of FMCG and grill magazines, has launched a Regional Fare campaign. It will gather information for comprehensive regional and national databases on locally produced food and beverage resources.The campaign will be backed by a nationwide branding programme – the Taste Of New Zealand Awards (TONZA) – which will direct visitors as well as local diners to those cafes, bars, restaurants, hotels and lodges that are supporting local producers by presenting their food and beverage products in the best possible light. A panel of independent industry representatives will determine whether an establishment is eligible for a TONZA and, if so, it will be categorised as either a ‘Good’ or

‘Excellent Expression of Regional Fare’ (for more information on the awards go to www.grill.co.nz and click on the TONZA logo). “The campaign programme is designed to foster an awareness of and pride in our stunning and growing range of local produce and promote it to local, regional, national and international audiences,” says Mediaweb publisher Toni Myers. “Our aim is to have the TONZAs in place throughout New Zealand by August of next year in time for the influx of international visitors for the Rugby World Cup in September and October.” Myers says there has been a very positive response to the Regional Fare initiative from both the hospitality industry and local producers. “There is little doubt that the trend towards consumers seeking out good local products is gathering momentum globally, which is being reflected in the growth of farmers’ markets in this country.” Farmers’ Markets New Zealand, which was established only five years

ago, now has 50 member markets throughout the country, representing over 1000 small to medium-sized food businesses and 50,000 weekly customers. The association recently held its third annual conference in Hamilton with international speakers from the UK and the USA outlining the latest developments in these markets globally. These include First Lady Michelle Obama’s launch of a farmers’ market at the White House. “It is likely the grocery industry will come under increasing pressure from shoppers wanting local, fresh food and beverages and we believe the regional databases we are establishing will be of considerable assistance in enabling stores to source these products,” says Myers.

Carrington Resort, Karikari Peninsula: a fine expression of regional fare.

If you are the owner of a store that is doing good things to promote your region’s produce and/or beverages we’d love to hear from you. Email: editor@fmcg.co.nz

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cate go r y c h e c k

Health & vitality Hello winter, hello snuffles. Every family is used to stocking up on extra vitamins and minerals in an attempt to stave off colds and flu, making this an important category for the season.

he grocery dietary supplements market is worth $52.3 million (Aztec, TKA Dietary Supplements, MAT 06/06/10) with Healtheries accounting for 44.6% of the market’s value, consecutively increasing share approximately one share point each month for the past five months. Red Seal and Blackmores make up a further 32% of the market with 19% and 13% share respectively. The Healtheries and Nutra-Life brands merged in 2007 to form Vitaco Health.The company has invested over $25 million in a 15,000m2 facility in East Tamaki, home to the lab, manufacturing, warehousing and office staff. Suzanne McKandry, marketing manager, says: “With a comprehensive range of over 100 products, Healtheries is New Zealand’s most trusted vitamin and supplement brand as voted by consumers (Reader’s Digest Most Trusted Brand 34

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Awards 2009). “General Health Cold and Flu, Arthritis and Energy generates 70% of the market’s value and Healtheries is highly active within each category, planning to spend over $1.5 million within this financial year.”

General Health General Health, which is made up largely of multivitamins ($9.2 million of the $9.6 million) is the number one segment within Dietary Supplements, generating 18% of total market sales (Aztec MAT 06/06/10). Healtheries commands a 45.6% share of total General Health, generated largely by the ever popular Healtheries Men’s and Women’s Multivitamin. Centrum is the number two ranked brand with a 27.6% share. Whilst the multivitamin market has been trending towards more ‘general everyday’ multivitamins

in larger pack sizes (100-250 tabs) gender specific multivitamins (Men’s and Women’s) account for $4 million of the $9.2 million making them the most important for the segment. This is strongly backed up by the fact that Healtheries Women’s Multi 60s is ranked number one in both value and volume. Blackmores has taken gender specific a step further, introducing a range of products formulated specifically for growing teenagers. Teen Multi for Girls and Teen Multi For Guys contain blends of essential brain health nutrients. They also include specific vitamins and minerals often lacking in teenage diets, to help teenagers reach their full potential, both in and out of the classroom.

Cold and Flu “Cold and Flu is the number-two ranked segment within Total Dietary Supplements worth $9.3 million,”

v i tami ns & supplemen ts

THE BREAKDOWN Current MAT to 23 May 2010

says McKandry, “with consumers clearly preferring products from within the Healtheries portfolio where they have a commanding 79% and growing share (Aztec, MAT 06/06/10).” Cold and Flu is a significant segment for Healtheries, seeing them spend over $600,000 via the Family Health Diaries media platform, helping to educate consumers on what is available naturally to help them make it through winter. Within Cold and Flu, consumers are looking for quality and value for money, opting for the larger packs sizes, demonstrated by Healtheries Vitamin C 500mg 200s being the number one ranked product and showing significant growth (+100% vs LY). Healtheries has nine of the top 10 Cold and Flu products,with Healtheries Garlic Complex 120s ranked third (+21.6% vs LY) and Healtheries Vitamin C and Echinacea 500mg 100s

ranked fifth (+16.4% vs LY). “Healtheries is committed to delivering category growth and the recent TVC on Vitamin C and Echinacea demonstrates just this, educating consumers on a high potency dual benefit product, which in turn has the potential to drive value, trading consumers up over the largely commoditised standard Vitamin C,” says McKandry. Last month Blackmores introduced Combat Day/Night to the segment. Aimed at cold and flu sufferers, six days’ supply of daytime and nighttime tablets support a restful night’s sleep. An innovative print and online advertising campaign for Combat Day/Night started in June and will continue throughout July. It will be interesting to say how Medsafe’s recent decision (see the news section) impacts on the Cold and Flu segment within this category.

Total health supplements: $72,352m. Value % Chg vs YA 1.1 Vitamins: $28,318m. Value % Chg vs YA -0.8 Nutritional sports bars: $6686m. Value % Chg vs YA 11.3 Nutritional supplements: $12,197m. Value % Chg vs YA 1.5 Other health tablets: $7040m. Value % Chg vs YA -4.4 Fish liver oil: $5834m. Value % Chg vs YA 8.4 Herbal supplements: $4428m. Value % Chg vs YA -7.9 Tonic supplements: $1995m. Value % Chg vs YA 14.8 Minerals: $3931m. Value % Chg vs YA 2.3 Garlic tablets & capsules: $1923m. Value % Chg vs YA 2.1 * ACNielsen New Zealand ScanTrack (Databank)

Arthritis Healtheries has a 44.7% share of Arthritis (Aztec MAT 06/06/10), a category combined from Glucosamine and Fish Oil and is showing good growth of +4.4% against the competitive set (Red Seal -7.3%, Blackmores -2.3%). Looking specifically at each of these as standalone segments, Total Glucosamine is worth $4.6 million. Healtheries has a 52.8% share (Aztec MAT 06/06/10), driven from the specialised Jointex range of joint-care solutions which sees Healtheries take up six of the top 10 ranked products, juLY 2010 FMCG

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including number one, Healtheries Jointex Glucosamine, Omega and Chondroitin Omega. McKandry says: “Healtheries is enjoying some great product success stories with the high potency Jointex Plus formulation (120s) ranked fifth currently delivering growth of +18.2% (Aztec vs LY) and the high strength Jointex Glucosamine 1500mg 200s, ranked seventh, seeing +60.7% growth vs LY. Last month Healtheries launched Jointex Glucosamine 1000mg 120s to help cover the joint maintenance segment of the market and expects great results from this new addition. Healtheries will spend $500,000 this year, educating consumers on the benefits of taking products from within the specialised Jointex range. Total Fish Oil is now worth over $5 million. The Healtheries Omega 3 1000mg range is selling over 102,000 units, almost 30% more than the closest competitor. The recent May addition of the high potency Healtheries 1500mg is another product set to drive new growth for Healtheries and the segment. Fish Oil has almost become a multivitamin of sorts with its known benefits for skin, brain, heart and joints. 36

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Healtheries Fish Oil 200s, launched in 2008, is not only the number-one ranked product but is continuing to see growth of +58% vs LY.

Effervescents Healtheries’ Boost range of Vitamin and Mineral Effervescents has recently had a packaging makeover and developed a new TVC. KcKandry says: “Unlike Berocca, the Boost range of effervescents is segmented so consumers can select the product that best meets their needs. Boost Immunity for winter (Vitamin C, Echinacea and Zinc) is available in two flavours, both of which are in the top 10 Total Cold & Flu. “Boost Energy features Vitamins B, C and Guarana for a quick kick when energy levels are flagging, while Boost Revive and Boost Perform have high potency one-a-day formulations with important daily vitamins and minerals to keep you going.” Four of the Boost range are in the Top 10 of all Healtheries supplements with Healtheries planning significant consumer marketing activity and the addition of completely new segments to the grocery market in the coming year.

Sleep easy and stress less Rhonda Bennett, Blackmores senior brand manager, says:“Over the last 12 months Blackmores has introduced a number of new products including Teen Multis, Daycare Defence, Executive B Sleep and improved reformulations for Joint Formula and Immuno Shield. “As the market leader in the stress category, Blackmores launched Executive B Sleep Formula as a companion product to our renowned Executive B Stress.” Executive B Sleep is a high quality combination of herbal extracts to help with sleepless nights due to stress, and this launch has seen Blackmores more than triple its sleep share in grocery to 26.3% (MAT Aztec 06/06/10). “It is estimated that over 500,000 New Zealanders suffer from chronic sleep problems,” says Bennett. “Blackmores is further strengthening our sleep range to provide support to the different consumer sleep needs with the launch this month of Sleep Sound. Blackmores Sleep Sound Formula aims to support a sound and quality sleep to wake refreshed.”

gs1

On pills and FMCG The case for global regulatory standards versus a New Zealandcentric approach. Dr Peter Stevens In a recent issue (May 2010), I wrote my column on the global focus by the FMCG industry to get standardisation of definitions, processes and systems for recalls and withdrawals. I highlighted the intense consumer and regulatory pressure coming onto the industry from a number of very high profile and lethal food safety incidents including melamine in milk (China 2008), listeria in cold cuts (Canada 2007), salmonella in tomatoes and peanuts (US, 2008), dioxin in pig and beef products (Ireland, 2008) and, closer to home, the enormous Pan Pharmaceuticals recall in Australia (2003). Off the back of these incidents, automatic, industrywide workflow systems have already rolled out, or are being piloted in: • Canada (Recall Portal, a joint initiative between GS1 Canada, the Canadian Council of Grocery Distributors, the Canadian Federation of Independent Grocers, the Food and Consumer Products of Canada and the Retail Council of Canada); • The US (the Rapid Recall Exchange – a joint initiative between GS1 US, the Food Marketing Institute, and the Grocery Manufacturers Association); • Australia (RecallNet – a joint initiative of GS1 Australia, ECRA and the Australian Food & Grocery Council). So in this context, it was interesting to see the Minister of Health order (June 3) an urgent review of “processes, procedures, contracting arrangements and compensation arrangements for pharmacies in medicine recalls”. The driver for this review was the number of recent patient-level recalls, one of which (Marevan, aka warfarin) was referred to in my

Dr Peter Stevens, chief executive, GS1.

previous column.You may have noticed these recalls – they are in the papers in a box with striking diagonal strips around them. At issue is the Pharmacy Guild, on behalf of its members, objecting to current processes that require pharmacists to pull back pills from their patients and to either destroy safely or return the offending pills to the manufacturer/importer. The pharmacists do not believe that they are adequately funded to do the recall, and have not been able to get compensation from the manufacturers – one claim is even going to court. In the press coverage and in the Terms of Reference the pharmacists point to their ethical obligations and contracting arrangements with the DHBs as being relevant factors in forcing them to actively assist in recalling medicines and thus incurring costs which were, in their view, not compensated for. From an FMCG point of view, the contrast is interesting. Certainly the FMCG sector takes its responsibilities seriously and has a strong ethical approach to the protection of consumers and brands. No difference there. What seems to be different is that the FMCG industry has for many years had a voluntary code of practice and standard forms for faxing/emailing around in the event of a recall or withdrawal. There is even an agreed method of signalling to the trading partner (normally a retailer) what ‘the deal’ is around compensation and a schedule of fees explicitly stated (handling, cost recovery on time, etc). Certainly there are opportunities for standardising and automating FMCG recall processes here in New Zealand, but it seems that the FMCG industry can in some ways congratulate itself on the foresight it had to work together as an industry to make an inconvenient, expensive and potentially damaging issue as painless as possible.

Product Safety Recall juLY 2010 FMCG

The supreme winning team.

p u g n i p p a r W

s d r a w a pr i nt The prestigious 2010 New Zealand Pride In Print Awards was held at the SkyCity Convention Centre on 18 June and media sponsor FMCG was there to cheer the industry on.

t this year’s annual New Zealand Pride In Print Awards MCs John Campbell and Carol Hirschfeld entertained a full house that included a number of award winners from the FMCG sector. Winning the most prestigious award in the New Zealand print industry will be the catalyst to put Fonterra Canpac of Hamilton back on track after a catastrophic fire earlier this year. Canpac earned the Supreme Award for a metal baby food can that has been a success in extremely-demanding overseas markets. Its Nutricia Karicare Gold Plus 1 can wowed judges with its technical excellence allied to the fact that it had gained acceptance with international clients whose standards are exacting. But while the can earned international recognition from customers 38

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in tough global markets, print plant manager Greg Wardrop said that its other major success would be to restore morale at the Hamilton plant. “The fire closed down our production and was a very hard blow to take.This win will help us rebuild that department and come back stronger. We have had a tough year but this will make us more determined to come back,” he said. In a testament to the collaborative spirit within the New Zealand print industry, Wardrop paid tribute to competitor NCI Packaging which had come to the aid of Canpac while its production was disrupted. Pride In Print chairman and senior judge Scott Porter said that for any packaging to succeed in the global arena, it had to be outstanding. “There is a huge emotional attachment in the relationship between mother and baby and that is reflected in the relationship between the prod-

uct and its packaging. This is a supertough market for a packaging printer to make an impression. “This can represents wonderful colours and density. Technically, they had to print three whites to achieve that density, which has succeeded in impressing the client. “I know just how hard that was to achieve. These guys have demonstrated outstanding skill and technique. They are a credit to the industry.” As well as winning the Supreme Award, the Nutricia Karicare can also won the Packaging Category, where it came up against entrants in flexible packaging, carton board and corrugated board, metal and other types of packaging. A minimalist wine label design that has “consumer appeal on the supermarket shelf ” took out the Labels Category for Auckland company Panprint. The Tiki Sauvignon Blanc 2009

awa rds

label impressed judges with its quality of finishing and was said by senior labels judge Mike Davis to have achieved true excellence in its production. “Anything that goes to market with a label is relying on that label to make an impact on the shelves. Designers strive to make something look different and stand out. “This label may be minimalist to the first look, but the cleverness is in the finishing. In terms of a print job the registration and embossing is as perfect as you can get,” said Davis. Panprint general manager John Lowther said that the minimalist design reflected where the New Zealand wine industry was at. The Labels Category included sheetfed, reelfed and multi-process labels as well as wine labels. Hamilton company Sealed Air New Zealand has shown it can pluck success from adversity in taking out the award for Best Flexible Process entry at the Pride In Print Awards. Sealed Air’s winning Littleneck Clams packaging work had actually been entered last year, when tiny registration flaws that were only noticeable under expert inspection meant it fell at the final hurdle. But this year, with the printers having taken the time to get the printing absolutely perfect, the judges could find no fault and duly gave it the top prize in its process. Judges commented that it was a very good example of what can be achieved using flexographic printing when the subject matter is something that can make or break the final appearance of the finished pack. “Seafood is very subjective when it comes to what looks fresh and what doesn’t. A lot of pre-press work was done on the images last year to create the very dense black background whilst still retaining a product shot that appealed to both the designer and

the final print buyer. “It was also necessary to print very clean fine text as well as ensuring the barcodes stayed clean and functional.” Sealed Air New Zealand print manager Damion Robinson said that the win was still a surprise, despite the indications given from the previous year. “We just put it together well – it came off really, really well off the press, then design-wise and effortwise from the operators, we got the result. “In our last Pride In Print Gold a decade ago, we had a very similar comment. With the quality of the work, people didn’t believe it came off a flexographic press.” Genesis Energy came in for strong criticism for “unfair” treatment of the New Zealand print industry. Speaking for the Pride In Print patrons, Chris Agius of Heidelberg New Zealand said that in the last 23 years he had watched as the stable products produced by the print industry slowly disappeared under the veil of “green” initiatives by customers. “As an industry we have unfortunately stood quietly by as we watched our bottom line diminish and listened to the spin used by companies as they justified their move away from print. “But in October 2009 the bar was lowered and became personal, when Genesis Energy for their own personal/financial reasons attacked our industry by asking their customers to silence the felling of trees that manufacture paper and silence the noise of printing machines by receiving their account online. “As an industry, we have done much more than many others to clean our backyard through technology and work practices with little to no fanfare. “So we have the choice …we can both sit back and watch quietly al-

lowing such misconceptions and untruths about our industry to persist, or work as one to support the Print NZ ‘Part of Life’ campaign and highlight the important and vital role that print plays in our everyday lives. “So to those who have joined the cause I applaud and thank you. To those yet to sign up it’s never too late to support our vocation.” Agius concluded with a call for the print industry to collaborate, and to work together to promote and bring change to the industry. The Awards also featured the induction of former chairman John North into the Pride In Print Hall of Fame. North was one of the main drivers behind the introduction of the Pride In Print concept into New Zealand in the early 1990s and spearheaded the development of the Awards for more than a decade. Make sure to check out the August issue of FMCG for our feature on packaging. Email any editorial enquiries to editor@fmcg.co.nz and advertising enquiries to Ashley Kramer: admanager@fmcg.co.nz ONLINE: For a full list of award winners visit www.fmcg.co.nz.

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The ongoing The palm industry has received a lot of media over the past 12 months but, when it comes to issues of sustainability, it’s sometimes hard to see the wood for the trees. Greenpeace New Zealand climate campaigner Simon Boxer gives an alternate point of view.

ollowing recent developments in the palm oil sector, some companies and industry bodies have accused Greenpeace of being anti-palm oil and anti-development. This couldn’t be further from the truth. Palm oil production and export is a critical part of the Indonesian economy. But the current business model of destroying forests and the livelihoods of millions of people is not sustainable. It also causes massive greenhouse gas emissions, making Indonesia the third largest emitter on the planet after the US and China. In the past two decades more than 28 million hectares of Indonesian and Malaysian rainforests have been cleared and replanted in palm plantations. The expansion of palm oil plantations is now the leading cause of deforestation in Indonesia, which has earned it the dubious accolade in the Guinness Book of World Records for the fastest rate of forest destruction. For many years Greenpeace has been running a campaign to stop 40

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deforestation and peatland destruction in South East Asia. It has identified companies that are still rapidly clearing forests and peatlands and has exposed these companies publicly. Two such companies, Sinar Mas and Wilmar, are actively clearing in the forests of Indonesia and are a key focus for both our national and international work. These companies are ignoring Indonesian law by illegally clearing forests, and intimidating local communities that oppose it. It is this ‘business model’ that is giving Indonesian palm oil a bad name on the international market. Palm oil is just one of the products from the industry. Last year, Greenpeace started a campaign that called on Fonterra to stop importing palm-based animal feed (known as palm kernel expeller or PKE) to feed New Zealand’s dairy herd. In 2008, New Zealand imported 1.1 million tonnes of PKE at a cost of around $300 million. Why are New Zealand cows munching their way through a quarter of the world’s production of

this animal feed which was virtually unheard of here 12 years ago? Fonterra’s intensification of dairy farming in New Zealand has pushed up stocking rates and forced the rapid uptake and increased use of expensive inputs like supplementary feeds and chemical fertilisers. This intensification model is pushing not only our environment to the limit, but is adding to the pressure on the world’s remaining rainforests. Importing PKE is the shortterm solution to a problem that we never needed in the first place. New Zealand maize growers have become another casualty of Fonterra’s dependence on PKE. Not only is PKE fed to Fonterra dairy cows, but its subsidiary company RD1 has formed a joint venture with Wilmar. This company has a documented reputation for rainforest destruction,illegal burning and creating social conflicts over community lands. So serious are these issues that even the World Bank suspended funding to Wilmar last year.

featu re

palm oil debate yists ustry, loebabted. d in m o r f Response iduals has been h and indiv Dear Editor,

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palm oil concessions being granted for the next two years. Existing concessions are still able to proceed with the clearing of rainforests growing in carbon-rich peatlands and home to many endangered species like the Sumatran tiger. On the island of Sumatra, alone, the area facing the chop totals 1.8 million hectares. One of the key steps would be to increase the yields per hectare of palm oil. Currently, Indonesian yields are very low, especially from small holders. Investing in yield improvement can secure Indonesia’s palm oil production, while enhancing the livelihoods of millions of small holders. Another important step would be to implement a planning process with the local communities to assess nonforested, degraded areas that could be used for economic development. Greenpeace has invited several palm oil producers and small holder cooperatives, for an open dialogue on forests and peatland protection and how it is compatible with palm oil production.

dito e e h t o er t

So what has to happen? We think that market pressure is critical to ensure that companies like Wilmar and Sinar Mas, and the rest of the palm industry are taking this issue seriously. But cancelling contracts with Indonesian palm oil companies engaged in deforestation and peatland destruction is not a long-term solution. A reform of the industry needs to take place to ensure that companies are no longer involved with (illegal) deforestation at the expense of local communities, biodiversity and the climate. Therefore, we are calling on the Indonesian government and industry to implement a moratorium on all deforestation and immediately protect all peatland. This temporary halt will provide the time and space to work towards sustainable solutions for the palm oil industry and for the implementation of longer term measures for protection, supported by international donors. A recently announced plan in Indonesia would only prevent new

“it’s hen she says, lutely right w so ab is il o ch Ri n’t palm as Katherine at the issue is th r ea cl e b rances of important to idespread clea w in se ea cr e in n sense a crop; it’s th some commo r fo e im (T s” rest sence of any pristine rainfo ). But in the ab 10 20 ay M il, ssible to know on palm o em, it is impo st sy n o ti ca ifi btained by reliable cert ed on land o uc d ro p as w il ple which palm o hy many peo , and this is w st re fo be the in ra ul o g clearin RSPO w d e Th . er th ge oil alto monitor such boycott palm instigate and to n io at is an ds are too obvious org their standar y tl en rr cu ut b itted certification, are not perm eir members th h ug o s” th al st weak; on value fore igh conservati ion does not to convert “h , this prohibit ns io at nt la p s of into palm to other area rainforests or l al to nd te ex portance. ecological im t Nestle was mpaign agains ca ce ea p en h there are The Gre fact”. Althoug e th to er ng as not “a stra re palm oil “h est Africa whe W in s ”, only ie ns tr o ti un ra co for gene ly b na ai st su ed been produc n produced by s palm oil bee ha s ar ye nt Indonesia, in rece Malaysia and in s st re fo in campaign is clearing ra es. Now the liv an ut ng ra d (17 May where the o just announce s ha e tl es N ed over, because sources involv ill stop using w ey th at th 2010) rest by 2013. tion of rainfo in the destruc inesses and between bus Cooperation eed the best l groups is ind ta en nm ro vi en both sides ess, provided gr ro p e ak m way to sts in New ars ago, activi ye ty en Tw t. f tropical take par d importers o te ke ic p en ft ants Zealand o timber merch all our major w o N . er er b b m ti pical Tim Imported Tro belong to the f importers association o an ), TG (IT d in 1992, Group GOs establishe N l ta en nm and enviro ys a key role. peace NZ pla en re G re he w ment Bera MacCle ge 42 continued pa juLY 2010 FMCG

feat ure The ongoing palm oil debate

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that calls for l is concerned ci un o C ry ce Gro nsumers The Food and ight mislead co m il o m al p f table oil belling o stainable vege mandatory la su st o m ’s rld ecutive at the wo , says chief ex ed by implying th id o av t es c ingredient b crop is a toxi . Katherine Rich te farming on appropria n w o gr n he is true. W stainable, “The opposite ronmentally su vi en st o m e is th ailable in the land, palm oil getable oil av ve ile at rs ve e and cost effectiv . il world today crop. More o of any oil seed d el yi t er es th gh O . te the hi other substitu “Palm oil has land than any ss le h to produce it w nd la ed times the is produc 10 to up ire can requ vegetable oils ount of oil. the same am ed as an easy singly being us ea cr in is g ion, animal lin “Food label as deforestat se er iv d as to for issues untry we need battleground rights. As a co an m uct d hu ro d p an a ity lved by welfare, obes d can’t be so an n ca t ha w out be realistic ab . ch Ri ce that label,” said NZFSA’s stan s FSANZ and rt o p p su an C FG health d Rich says that es relating to su is r fo ed us d be portant for labelling shoul , it’s more im ve ti ec sp er p ntained in a a health rated fat is co safety. From tu sa h uc m know how consumers to fat might be. an what that th er th ra t c produc ling of specifi andatory label m rt o just one p p is su il t o ity. Palm al ic “FGC doesn’ ct ra p f o r a variety . It’s an issue production fo d o vegetable oils fo in ed ry getable oils us ng compulso of over 70 ve e detailed listi ak m rs .” to la so g gu doin fore re ty reason for of reasons. Be health or safe d o go a e b ht there has to t been thoug il labels haven’ o m al , but p r ed fo us calls oil is Rich says that whether palm e at ic d in y th nl or whe er s will o was sourced il through. Label o e th re he g about w ployed. will say nothin ctices were em ra p n o ti uc d ro ne sustainable p come from o produced or ly b na e ai th st su ce not fa may be of which will y “The palm oil an m s ie tr ferent coun says ‘contains of over 40 dif . A label which ns er nc co l ta en e wiser.” same environm opper none th sh ed st re te in es the palm oil’ leav

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n from A spokesperso ed to lin Fonterra dec Simon Boxer’s comment on this issue statements in ng that of FMCG, sayi has already y the compan . ese allegations addressed th

t to print, this issue wen ONLINE: As erson Sue Food spokesp Green Party ebsite that rted on her w o p re ey gl d Ke ies are food compan “New Zealand ers which to tell consum not prepared ain palm oil”. products cont Zealand’s to 20 of New Kedgley wrote king them companies, as largest food ufacture ucts they man d ro p f o t lis for a edients. n palm oil ingr which contai does not rmed that it Watties confi roducts, in any of its p il o m al p e us ed palm said it only us and Delmaine hi w ch it was its products, oil in one of entify. prepared to id to link to w.fmcg.co.nz w w o nt o g Lo onses. mary of resp Kedgley’s sum

welcomes think? FMCG u yo o d t ha W any issues editor about letters to the industry. affecting the fmcg.co.nz. Email editor@

g rocer y busi n ess When waste is good From the bottle to the pottle A Kiwi company of ‘enviropreneurs’ is creating truly recyclable packaging solutions. By Brenda Ward. Imagine a world where every container you toss away is guilt-free, where packaging is truly recyclable and breaks down into organic compounds that help feed the earth. It’s a dream that has started to come true for Grant Hall of The Good Packaging Company, thanks to some friends and lots of big ideas. Already the company has bottled water in a pale blue plastic-like bottle that will compost in 45 days if you bury it. It makes a sustainable ice-cream tub for Kohu Road Ice Cream that can be truly returned to dirt and nutrients. And now it’s almost ready to offer the world’s Grant Hall with Prime Minister John Key, a fan of the sustainable bottle. first compostable green wine bottle. The success of its first three projects has the change, in fact the recession has worsened the situation. company fired up and ready to take over the It’s clear recycling is not working: At best we only recycle 11 world of sustainable packaging. Hall says the company grew out of a hard lesson he learned when he was a member of the percent anyway, and 90 percent goes into the landfill.” New Zealand Juice and Beverage Association and was asked to Frustrated, he resigned from the committee, and from the Juice and Beverage Association. “I made a commitment to join a committee studying waste plastic bottle recycling. “Like most people, I was diligently putting bottles into the black come up with an alternative solution, to create a bottle that bin, thinking some good was coming of it. But what I discovered was made from sustainable resources, with no chemicals. Bio-plastics have been around for a long time, but oil has was that every 20 minutes a truck would arrive at the materials been so cheap that industry didn’t pursue it as a viable recovery centre in Auckland, full of used plastic bottles. alternative. I decided to start there.” “I found they were crushing them, baling them, shipping them overseas and selling them to the highest bidder, at that His company created Bio Flex, a bio-polymer, which is an organic material sourced from plants and developed in time China. We went up to China with a camera crew and an ethical process to replace the petro-chemical based found at best they were turning our bottles into nylon flags alternatives, primarily plastics. and sending them back to us, where eventually they would He started business with the Sir Peter Blake Trust on the turn into landfill. first product, a water bottle made from horticultural and “Otherwise they were burning them for energy. Burning plastics creates toxic fumes that are causing vast devastation agricultural waste, which took two and a half years to develop. to the environment. Plastics are infused with toxins, At the Scion Crown Research Institute, he found 340 hardeners and metal oxides, and no one knows the longscientists using industrial biotechnology to create new term impact on the earth of those waste gases.” materials, energy products and green chemicals from organic Hall says his findings changed nothing and he became waste products. “We partnered with them and some other depressed by what the beverages industry was doing to the talented materials engineers and bottles engineers to create earth, both in landfills and in the sea, where bottles circulate a square bottle.” on gyro currents. contintued on page 44 “I found the situation morally repugnant. There’s been no

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g rocer y b us ine ss When waste is good continued... Square bottles are the optimum shape for storage, he says, using less space per square metre to stack. However, engineering the base and corners of a square bottle took a lot of time, testing, trial and error. It was big news when it worked, resulting in invitations to Japan for World Earth Day and to Mexico for the World Bottled Water Congress in 2007, and winning recognition in the US academic world. You have to ask, if it’s so good, why isn’t everybody doing it? Hall looks pensive. “Quite simply, it is more expensive. Each bottle costs 15 percent more to manufacture. Big companies want to do it, but they’re holding off.” Hall’s company may not be producing vast numbers of truly recyclable bottles worldwide yet, but as a result of the project and its high profile, it has had a lot of enquiries, both from New Zealand companies and overseas ventures wanting to develop other ethical products. “The most exciting is the wine industry. Peter Yealands has New Zealand’s leading environmentally sustainable winery, based in Marlborough, and he’s bravely committed to doing his wine in a plastic bottle. We are now close to releasing the world’s first compostable green bottle. This is a New Zealand innovation, but it’s not quite retail-ready yet,” says Hall. He says the New Zealand wine industry is under a lot of pressure overseas, due to the distance we have to ship our products, so a fully compostable wine bottle will make a big impact. The company has also developed an ice-cream container that will freeze to -40 degrees Celsius and is being used by organic ice-cream manufacturer Kohu Rd Ice-cream. There are four partners in The Good Packaging Company team, Hall (who does business development), Rebecca Burt

(designer), Grant Jeffrey (manufacturing) and Melanie Smith (administration). They see their role beyond just producing bottles, but as inspiring change and helping other people upgrade their packaging, says Hall. They are happy to work with companies looking for sustainable packaging. The company has fans in high places, for example, Prime Minister John Key, who came to the launch party of the sustainable bottle and keeps in touch, says Hall. As the next part of a product stewardship programme, the company is planning to extract its bottles out of the waste stream, hydrolyse them, infuse with organic nutrients and then reform them into a seedling pot for the forestry industry. “We’ve already done it with pohutukawa seedlings,” says Hall. “We’re working with New Zealand forestry on the product. Workers can leave the seedling in the pottle when they plant it in the ground, and as it degrades, it nourishes the plant.” They claim trees will mature three years faster using this method, plus the waste can be used as raw materials to create another bottle. “You’re adding value in every stage of its life,” says Hall. “The old model with packaging was ‘cradle to the grave’: use it, then throw it away. You can’t do that any more. You have to start by designing products made from sustainable resources, so they can be up-cycled into another product. “Sustainability is not enough, the next step is ethical added value.” l This feature first appeared in NZ Management magazine. Brenda Ward is the editor.

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g rocer y busi n ess Care as you earn New Zealanders are naturally generous people. Each year an estimated 1.2 million of us volunteer our time and together we give more than $1 billion a year to charities. Now it’s even easier for businesses and employees to give, thanks to recent changes to our tax rules. The new legislation has introduced ‘payroll giving’, a concept that means employees can give as they earn and receive an immediate tax credit of a third of each donation. Now the cap on the donations tax benefit has been removed, meaning that individuals can claim tax benefit on donations up to the level of their taxable income and companies can donate up to the level of their net income and still receive a tax benefit. Payroll giving was launched in New Zealand earlier this year and is voluntary for both employers and employees. Employees in participating companies simply nominate a charity or organisation to donate to from their pay, as long as it has Inland Revenue-approved status. The employee receives an immediate 33.33 percent tax credit via PAYE. That means if someone gives $15, it effectively only costs them $10, but the charitable organisation receives the full $15.

Research in countries with established schemes shows that payroll giving offers significant benefits to employers including: • Increased employee morale and retention. • An improved social responsibility profile. • Stronger partnerships with the community. Recent research from Washington’s Center for Work-Life Policy showed that high-potential employees increasingly seek out employers that allow them to participate in charitable pursuits on company time. Australians currently donate around A$20 million annually through workplace giving. The additional benefits of such schemes have become clear during recent disasters, for example, PricewaterhouseCooper staff in Australia raised A$650,000 in 10 days through payroll giving for the Victoria bushfires appeal. The cheapness and efficiency of payroll giving is also seen as an advantage in the light of public concern about the amount charities have to spend to raise money. Charitable organisations internationally report that payroll giving dramatically reduces fundraising and administration costs. l

1SPUFDU ZPVS GVUVSF JOWFTU JO ZPVS *1 It’s your intellectual property that makes your business successful – your product, your brand, your packaging, your designs, your advertising. To grow your business you need to protect, enforce and profit from your IP. As New Zealand’s leading intellectual property firm, we have the expertise to help you protect, enforce and commercialise your intellectual property rights in New Zealand, Australia and throughout the world. We act for nearly half of New Zealand’s top 100 companies and almost half of global Fortune 500 companies. Talk to us about where you want to take your business.

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1 2

Gluten Free Food

& Allergy Show

5 6 7 8

1 SweetSmart 2 The Collective 3 Alexandra’s Bazaar 4 Hubbards 5 Scotts Brewing Company 6 Nestlé Maggi 7 Healtheries 8 Vogel’s 9 Coeliac New Zealand representatives 10 Ceres 11 Urban Appetite 12 Enzafoods 13 Donovans Choc Hazelnut Fudge 14,15 Bakers at Bakels stand 16 Orgran (Crombie & Price) 17 Venerdi 18 Burgen 19 Lovecake 20 ieproduce

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The Auckland Gluten Free Food & Allergy Show proved to be immensely popular, with dedicated visitors flooding the exhibitors.

espite the rain, there was a line of people at Auckland’s ASB Showgrounds waiting to enter the Gluten Free Food & Allergy Show as soon as the doors opened. It’s proof that consumers are actively seeking these products. FMCG overhead a parent in the parking lot saying to her child: “You must try everything.” Coeliac New Zealand explains this is a sign of parents desperate for food that doesn’t make their children sick, or for parents of children with food allergies who view food as a potentially lethal danger. Amongst newcomers like Burgen

were exhibitors that have been here for all three years the show has run. Donovans, Ceres and Lovecake were amongst the stands that were swarmed by visitors sampling, talking and buying. Monette Tiu, marketing manager Ceres, told FMCG: “This is our third year and it’s fantastic. People just seem to be growing in numbers. So it’s been a very good experience.You just don’t realise how many people are concerned with allergies, but this is proof of it. People are into healthier foods as can be seen by the attendance. We’re here to present alternative products

sh ow 10 11

12 14 13 15

18 16

to the mainstream. For example, our chips only have two or three ingredients and yet they taste so good.” Orgran is another stand that proved popular with visitors. John Crombie, general manager, Crombie & Price, says:“In the last five years the company has expanded to over 80 products – all gluten free, wheat free, dairy free, yeast free and so on. The only part that isn’t free is the purchase.” Orgran is distributed in 320 supermarkets, 360 health stores and 800 pharmacies and as Crombie says: “You can see the expanded interest. There are a lot of different companies here providing all manner of gluten free things, so the market is aware of the growth. This is one of the best crowds we’ve had this year and it’s only the first morning.” Sponsored by Vitasoy and supported

by Healthy Food Guide, Allergy New Zealand and Coeliac New Zealand, the show had more to offer consumers than a grocery stock up and sampling of new flavours. It also presented a host of seminars. Healthy Food Guide editor Niki Bezzant provided practical advice on how to make and adapt recipes to be free from gluten, wheat, dairy and egg, while Dr Rodney Ford and Dr Vincent St Aubyn Crump talked about ‘the Gluten Syndrome’ and allergies respectively. In addition there were nurses, dieticians and other specialists on hand to share their knowledge. If the success of this show is anything to go by, these niche categories are poised for growth as consumers seek solutions for increasingly challenging health issues. It’s a positive sign that suppliers are taking note.

If you missed this one, there are two more Gluten Free Food & Allergy Shows this year: Wellington 28-29 Aug 2010 TSB Arena Christchurch 20-21 Nov 2010 Christchurch Convention Centre juLY 2010 FMCG

legal

Corinne Blumsky is a partner at intellectual property law firm A J Park. Email: corinne.blumsky@ajpark.com.

Company names can evoke strong feelings – particularly if a company chooses a name that is misleading or deceptive. Just because a company has been incorporated by the New Zealand Companies Office doesn’t mean the company can use that name. One company recently found that out the hard way. New Zealand Natural Care Products (NZ Natural) was fined $15,000 in the Auckland District Court for using its company name and variations of that name. This case highlights the risk of using descriptive terms in company names. The problem for NZ Natural was the message consumers took from its name. Consumers believed the royal jelly it sold was from New Zealand, when it actually came from China. As a result, NZ Natural was found to be in breach of the Fair Trading Act. NZ Natural breached the Act because its name and variations of that name misled consumers about the origin of its royal jelly. What you need to know about company names A quick check of the Companies Office database shows that many New Zealand companies contain descriptive terms. Many more contain ‘New Zealand’. The use of terms like the seemingly harmless ‘New Zealand’ can cause issues if consumers believe your company name implies that your products are from New Zealand, especially when it turns out that they are not. Using a registered company name is not a defence in misrepresentation cases, or in trade mark infringement or trade mark reputation based actions. What should you do? If you intend to trade in New Zealand using your company name, or in fact any name, it pays to check that: • using your name will not mislead consumers • your name is not the same as, or similar to, a registered New Zealand trade mark 48

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My company name says what? It’s worth making stringent checks about your company name to save potential money and adverse publicity later. By Corinne Blumsky

• your name is not the same as, or similar to, a trade mark someone else already has a reputation for in New Zealand. These checks are fairly straightforward and do not take long or cost too much. And remember your working environment is not static. Checking periodically that you can use your name is also something you should do as your business expands. If you have an established business under a particular name but are going to move into new business areas or expand into new geographical areas, it pays to stop and check that you can do so without unacceptable risk. Understanding the risks you face will help you avoid a NZ Natural situation. What’s the risk? Misleading people about the origin of your products breaches the Fair Trading Act. Fines of up to $200,000 and criminal convictions are possible. Not to mention the adverse publicity. Breaching someone’s registered or unregistered trade mark rights can result in an injunction preventing you from using your name and an award for damages or an account of profits. Plan for the future Most risks can be managed if a business is aware of them. Stand in the shoes of your customers when selecting your company name – does it tell a truthful story? Getting it wrong can significantly impact on a business – make sure you do proper checks.

Marshmallow ice cream arrives

After nine years of R&D, Memphis Meltdown Rocky Road hits convenience stores. Making melted marshmallow flow without clogging up the pipes was just one of the challenges facing engineers.

Senior R&D technologist Jane Ogg.

Jane Ogg wears unconventional perfume. It’s not Issey Miyake or Chanel. Ogg wears marshmallow. Her boyfriend has become quite fond of the sweet smell wafting home after her marshmallow days inventing ice creams at the Tip Top factory. The senior R&D technologist has a BSc in biochemistry and microbiology and she’s just invented the world’s first ice cream on a stick which combines ice cream, jelly, nuts, choc and coconut and is fully dipped into liquid pink marshmallow. Enter Tip Top’s latest ice cream history maker: Memphis Meltdown Rocky Road. After nine years, nine trials, more than 2000 man hours, Kiwi ingenuity from a team of 100 people, and 12,500 litres of pink marshmallow, Tip Top Ice Cream has produced what is believed to be the world’s first novelty ice cream

wrapped in marshmallow. The new ice cream started out as a sample hand-made by Ogg. Liking what they saw and tasted, the company then worked together to produce Memphis Meltdown Rocky Road. Ogg says the ice cream came about after “a lot of eating and hyperactivity”. She recalls a giant puff-ball-sized lump of failed marshmallow they had to throw away in the early stages of development in the mini-factory next to the lab. “It looked like one of those Ottoman poofs you buy for your lounge in Morocco.” The former Havelock High School student can’t pinpoint where her creative passion came from but she says everyone loves marshmallow because “it’s pink, fluffy and childish”. Memphis Meltdown Rocky Road february 2010 FMCG

travelled a rocky road of its own. A chocolate fish-shaped ice cream, just under a decade ago, was the first time Tip Top had tried to make a marshmallow-wrapped ice cream on a stick, but back then marshmallow proved to be a formidable production challenge and the product was discontinued. With a culture of tenacity at Tip Top, the engineering and operations team responded to the challenge of quick-setting marshmallow. The engineers worked out a way to heat and insulate the pipes to allow the marshmallow to flow which has resulted in chocolate ice cream rippled with raspberry jelly, dipped in pink marshmallow, and smothered in choc, nuts and coconut – on a stick. Ogg says her creation was spurred on by a constant creative buzz at Tip Top. “I have always loved food and I really enjoy the opportunity to combine science with art in this job. It’s exciting to see the original concept become a commercial reality. It’s every young R&D technologist’s dream.” Memphis Meltdown is no stranger to world-firsts and now boasts three. First came the Memphis Meltdown Gooey Caramel in the ‘90s. The

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triple-dipped ice cream with a layer of caramel sandwiched between two layers of chocolate had never been commercially made anywhere in the world. Realising the uniqueness of its invention Tip Top patented its intellectual hotproperty in the world’s biggest ice cream market – the US. Next, Tip Top’s innovation team invented the world’s first ice creammaking process that puts whole minibiscuits into Memphis Meltdown Big Bikkie. This second Tip Top invention was protected by securing patents in 21 countries and forging a jointventure deal with an international producer of manufacturing technology – Cherry Burrell. The third Memphis Meltdown invention, known among the team as ‘Rocky’, is expected to cause a similar stir in the international ice cream world. The all-new novelty product from Tip Top was rolled out across convenience stores in early June, initially with just point of sale and a comprehensive round of publicity to back it up. And from retail freezers around the country, the sales team at Tip Top report unprecedented levels of repeat sales. Marketing manager Trish Whitwell explains that Memphis Meltdown always sells well in winter. The difference this time she says is the speed of consumer uptake. “Big Hokey was Memphis Meltdown’s

last big launch and it made number one. After only three weeks, and before achieving full distribution, sales for Rocky are already significantly ahead of Big Hokey. With TV and outdoor advertising yet to start, and distribution still working up to target levels, this product looks set to be this season’s top seller,” she says. l

Tip Top’s top ten ice cream inventions Jelly Tip Originally a jelly-and-icecream treat on a stick for kids. R2D2 New Zealand’s biggest ice cream block-buster, from Star Wars’ heyday in 1978 Choc Bar Still New Zealand’s top-selling ice cream after 40 years Memphis Meltdown Gooey Caramel World-first number one Memphis Meltdown Big Bikkie World-first number two Memphis Meltdown Big Hokey Biggest news for hokey pokey since WW2 Goody Goody Gum Drops on a stick New Zealand’s first ice cream romance Trumpet M&Ms Second highestselling New Zealand ice cream in 2010 after Choc Bar FruJu Fruit Whip Whipped from 97% real fruit Memphis Meltdown Rocky Road World-first number three.

Scandinavian governments reject retail display ban The kingdoms of Denmark and Sweden have rejected proposals to ban displays of tobacco in their countries. The Association of Community Retailers tobacco spokesperson, Murray Gibson, said the Scandinavians have provided encouragement and their decisions will be hugely welcomed by small, family-owned retailers who are fighting against similar proposals in New Zealand. The Danish government recently rejected proposals to ban displays because of the lack of evidence that it would reduce tobacco consumption; lack of evidence that displays were linked to smoking initiation; unreasonable costs to retailers, and the risk of increasing illicit trade. Sweden rejected a proposal for a display ban and chose instead to focus on tightening regulations and providing stronger enforcement and supervision around tobacco sales. Gibson, a Timaru-based tobacconist, welcomed the decision saying the New Zealand Government is seeking domestic and international evidence before making a decision to implement a display ban in New Zealand.

“It is very clear that countries overseas which reject bans on tobacco displays do so because there is no evidence displays are linked to smoking initiation. This is very important because last year John Key’s Government said it would be guided by moves overseas before making a decision to ban displays here,” Gibson said. The ACR is calling on the Government to consider more beneficial revision to current tobacco control laws, including improved retailer support and education. The verdict of the Swedish government to reject display bans and instead focus on ways to strengthen and improve enforcement would be a far more effective way for the New Zealand Government to combat smoking prevalence, Gibson said. Gibson said there was international research soon to be released in the United Kingdom that would show that a display ban in Canada has had a detrimental effect on the retailing environment but has done nothing for reducing smoking. l

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Kiwi marketer eyes slice of UK pie market Young Kiwi entrepreneur Dan Cato doesn’t mind clocking up the miles on the M1 between his office in London and warehouse in Northampton from where he runs the European division of his family’s successful packaging business. But he does mind having to go without a little taste of home – a hot Kiwi-style meat pie that’s seemingly impossible to find at the many wayside service centres along the route. So he’s decided to do something about it. Last month, the ‘Pie on the Fly’ brand launched in New Zealand, aimed squarely at service stations and other convenience outlets catering for those looking for a hearty meal solution in a hurry. Initially available in six proven flavours including Bacon, Egg & Cheese and Chicken & Vegetable, each full size (200g) pie is

specifically formulated for hassle-free dashboard dining. Its rectangular shape and greater consistency (read more prime meat and less gravy) reduces the risk of potentially dangerous spillage, and the flakeless pastry does away with any mess. Even busy sales reps can enjoy their favourite lunchtime fare on the run without worrying about pie on their clothing. Customers won’t miss Pie on the Fly’s distinctive tamperproof cardboard packaging with a handy zip opening. The rectangular shape allows it to be held comfortably in one hand and stowed in a cup holder for greater convenience. The launch is supported by a $150,000 radio campaign to help kick-start the range of frozen pies which is being distributed through Bidvest Foodservice. Cato’s company, Packaging Brands (UK) has invested heavily in new state-of-the-art pie making equipment to make a top-quality product that will meet demanding European standards. Once the brand finds its wings in the local market, he’s off to the UK where he expects to find a ready market, particularly among ex-pat Kiwis longing for a taste of home. l

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Report on the ledger

Trina Snow, executive director, Nargon.

Budget 2010 gets a pass mark from Nargon. By trina snow

Despite the first signs of a sustained economic recovery, the retail environment remains tough in New Zealand. People are still extremely careful with their spending and are willing to constantly change their purchasing habits in search of a bargain. For much of the recession, supermarket and grocery sales outperformed the rest of the sector. Now, as the overall picture gradually improves, supermarkets and groceries are seeing a decline in sales. It was in this context that Finance Minister Hon Bill English delivered his second Budget on 20 May 2010. Most of the immediate debate centred on the changes to the tax system. These changes had been touted as the most significant for 25 years. According to the Minister’s speech, Budget 2010 had four distinct aims: 1. Lift the long-term performance of the economy. 2. Reform the tax system to make it fairer, more sustainable and more supportive of economic growth. 3. Better delivery of public services for users and taxpayers. 4. Maintain firm control of the Government’s finances, return to budget surpluses and pull back rising debt. The key announcements of particular interest to our industry included: • Rise in GST to 15% from October 1 2010 (expected). • Reductions in personal tax rates from October 1 2010 (expected). • Reduction in company tax rate to 28% from start of 2010/11 income year (better than expected). • Funding confirmed for the Productivity Commission to reduce regulations and red tape (expected). • Not allowing depreciation for buildings with an estimated useful life of 50 years or more, such as rental houses and offices (largely expected, but will catch some commercial buildings). • Additional Budget funding for Inland Revenue to enhance compliance, audit and debt collection (not

expected – could signal a more aggressive approach by IRD). The tax changes will have a mixed impact on our sector. Tax cuts and matching increases to benefits and entitlements mean that people will certainly have more money in their pockets. This would traditionally suggest a jump in spending. However, consumers will be paying more in GST and the Government is encouraging people to save rather than spend. Overall, the package of tax changes is fiscally neutral – the reduction in the personal and company tax take will be paid for by the extra revenue generated by GST. Based on what has happened here and overseas when GST (or a similar tax) is increased, we can expect a small jump in purchases immediately before 1 October as people look to ‘beat’ the rise. However, any meaningful spending boost is only likely to be on much larger items such as electronics, appliances or even cars. The reduction in company tax will be welcomed by stores and is actually a larger drop than most were picking. Equally, the Productivity Commission also has the potential to eliminate some of the red tape and bureaucracy which constantly frustrates Nargon members. On the other side of the ledger, some commercial buildings will be caught by the changes to depreciation treatment which could impact stores either in terms of tax or higher rents. The exact impact of these changes, which are mainly targeted at the residential housing market, is not yet clear. Overall, in difficult circumstances, the Budget was carefully balanced and relatively well-received (though there was a small drop for National in the polls.) Nargon would certainly give Budget 2010 a solid pass mark.

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Keith Stewart looks at craft beer’s progression in New Zealand. The news from down in the brewery is that craft beer is the only area of growth in the beer business. This is great news for artisan brewers who put their life and soul into their craft, for importers of handmade beers from various parts of the world, and for retailers, who have an item of genuine interest instead of the bland, massed brands that once dominated New Zealand’s beer palate. The beer renaissance started in this country around the turn of the century (the 21st) with the emergence of a number of brewpubs that were outside the traditional industrial duopoly of Lion and DB that had been in control of beer drinking in this country for most of the 20th century. These micro-breweries with bars attached included the Dux de Lux in Christchurch, the Shakespeare in Auckland, Roosters in Hastings,

Founders in Nelson, and the Mussel Inn in Takaka. These outposts of brewing individuality were almost revolutionary in their rejection of the brewing empires of the status quo, and they attracted drinkers with attitude in much the same way the 1970s’ Campaign for Real Ale (CAMRA) revitalisation movement did in the United Kingdom 25 years earlier. Suddenly there was an alternative, and with the support of a number of small brewers who had no outlets of their own, such as Emersons in Dunedin, New Zealand became again a nation of local brewers developing their own particular styles and character. At the peak of the early brewing industry in this country there were slightly more than 70 brewers operating from Invercargill to

the business of liquor reselling

Craft beer market continues to grow

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Whangarei. A century later, in 1980, there were just three, Dominion Breweries (DB), New Zealand Breweries (Lion) and Mac’s, the small Nelson operation that dared to take those two on when they controlled the business through draconian sale of liquor regulations. It would take a change in liquor law to break the stranglehold of the industrial beer giants and release Kiwi beer drinkers from low alcohol, low flavour, slightly sweet, bland beer, the mass produced ‘golden lager’ styles that were branded as everything from lager to stout, from export to India Pale Ale. Success in the beer business then meant owning licences, but that has changed with the revolution and now success depends as much on the quality and character of beer as it does on the marketing hype of the sales division. Now there are little guys such as the Green Man, a Dunedin brewery concentrating on organic beers and recycled packaging, who are competing for our tastebuds. One of the greatest developments of the brewery revolution has been the championing of quality beer by supermarkets, especially New World, which has made a feature of the unusually extensive range of craft beers that it offers to customers. This is not just local beer, but includes a fine range of imports as well, a sign that range is important to the discriminating beer drinker. Included amongst these international beers are the usual cosmopolitan

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lagers such as Heineken, Grolsch, Asahi, Stella Artois and Carlsberg, along with a good assortment of Australian big brands like Castlemaine XXXX and Fosters. But the real attraction for beer aficionados comes from the smaller brewers of Europe, North America and Australia, beers that not only give meaning to the famous styles that are recognised around the world, but also provide a benchmark against which the new Kiwi brews can be measured. Grant Willoughby of Beer Force is an importer of high end beers into the New Zealand market, and he acknowledges that supermarkets have been in the forefront of the development of more sophisticated beer tastes in this country. “There has been a clear awakening amongst retailers of the profitability and extra consumer interest offered by premium and super-premium beers,” he says. “Such brands have a number of advantages, not least that they do not have to be ‘specialled’ to appeal to customers. They have also attracted repeat business,” he adds, noting that the beer market in general is declining, with all the mass market brands, “under pressure”. “However, beer in supermarkets is a growth sector, with the whole range of styles being discovered. Currently there is a lot of interest in Belgian beers, as well as ultra premium British and German beers,” Willoughby says. Auckland-based Epic Brewing Company’s Luke Nicholas says that supermarkets have provided the opportunity for small brewers to compete in the New Zealand marketplace, and in return the stores get better dollar returns on craft beer than they do on lines from the industrial producers. “What New World have done is very exciting,” Nicholas says. “They have listened to their customers by

tracking their sales and getting out on the shop floor and asking what people want, then actually delivering it. The craft beer section is now a feature of New World stores.” This makes supermarket sales the biggest single outlet for Nicholas’ highly regarded Epic beers, taking about 35% to 40% of production. “They have done us a big favour at a time when we were shut out of cafes and bars by the big guys,” Nicholas says. “Not only did they give us an alternative sales channel, but they put us on shelves just when people were starting to drink more at home and were looking for interesting alternatives to the same old stuff most bars were offering and they found us [craft beers]. Now drinkers are really getting amongst it and sales across the whole craft beer sector have never been better.” He also notes greater interest from cafes and bars than ever before. “It’s as if they have just discovered there is an alternative to Heineken and Steinlager,” he says. The industrial duo have followed suit, developing craft image brands Monteith’s (purchased by DB as part of Westland Breweries in 1969) and Mac’s (purchased by Lion in 1999) to meet the change in beer drinking habits. Supermarkets continue to be the leaders in craft beer, however, whether local or imported. Craft beer has become a feature of supermarkets in this country, one that is proving profitable for all concerned. Grant Willoughby’s final word is for grocers who are yet to be convinced of craft beer’s value to their business. “I have noticed that six to 10 weeks after a supermarket gets involved in the premium and ultra premium beer trade, sales grow. I believe that this is because those stores become destination stores. Beer becomes a prime reason shoppers return.” l

Smooth beer Premium low-carbohydrate Stella Artois Légère launched in June in a distinctive silver box. Stella Artois has long been known for its heritage, quality and supreme craftsmanship. Stella Artois Légère retains these core attributes, delivering a stylish, modern and accessible beer with an elegant look and a smooth, wellrounded flavour. “While Stella Artois traces its history back to 1366 and is enjoyed all around the world, the Stella Artois Légère is an exciting complement and addition to the Stella Artois brand name,” says Todd Gordon, marketing manager premium beer. “Lower carbohydrate beers are becoming increasingly

popular in New Zealand. We are only the second country in the world to launch Légère, and the first to launch with this liquid and packaging design.” Stella Artois Légère is available in six or 12 bottle packs, with an ABV of 4.6%. l

Beervana coming up On August 27 and 28 at the Wellington Town Hall, brewers from around New Zealand will be showcasing their finest beers at Beervana 2010 – an event which gives the public a first-hand opportunity to meet local brewers, try award-winning beers and festive brews released especially for the show. With limited tickets allocated to each session, this highly popular event focuses on offering people a quality tasting experience and beer-related seminars. Sponsored by New World, Beervana follows on from the BrewNZ Beer Awards, New Zealand’s premier beer competition, now in its ninth year and growing every year. The award winners will be announced in Wellington on Thursday, 26 August, the night before the opening of Beervana. At Beervana, the public will have the chance to sample some of these award-winning beers and to meet the brewers behind them.

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The BrewNZ Beer Awards and Beervana are run by the Brewers Guild of New Zealand which represents more than 50 brewers around the country, ranging from small brewers up to the two largest brewers DB and Lion. The Guild’s chairman, David Cryer, says that the huge growth in awards entries last year, up 75% to over 350 entries, reflects the popularity and growth in premium craft brewing. “Consumers are increasingly choosing premium craft beers, despite them usually selling at a premium price, with an 11% increase in premium craft beer sales over the last year. While the sales value of premium craft beer is up, it appears that individually we’re actually drinking less, with total alcohol consumption having fallen by 3.3%,” says Cryer. “What’s happening is that consumers are becoming more discerning about what they drink, opting to savour and enjoy a well-crafted beer, with greater variety and complexity of taste.” l

Beer to the All Whites Monteith’s hopes its recent win at the 2010 Beer World Cup in London bodes well for the All Whites as they continue to make New Zealand football history in South Africa. The Greymouth brewery has shipped over a pallet of its world champion brew, Monteith’s Golden Lager, to the team at their Johannesburg hotel. Monteith’s marketing manager, Russell Browne is conscious the team is not drinking while competing in the FIFA World Cup but hopes they’ll get to enjoy a well-earned Monteith’s Golden Lager sometime during their campaign – just not too soon. “Obviously we want the team to progress to the finals and ultimately win the FIFA World Cup, but either way

they have done an incredible job and Monteith’s, along with the rest of the country, is extremely proud of their achievements so far.” Monteith’s Golden Lager beat representative beers from 32 countries to take out the top title in the 2010 Beer World Cup in London. The competition followed the same format as the FIFA World Cup – group stages, top 16, quarter-finals, semi-finals and the final. Monteith’s beat out some solid competition like Guinness, Asahi, London Porter and Grolsch to take out world title – despite being ranked an outsider. Browne says Monteith’s – like the All Whites – was ranked an outsider and hopes the team can ultimately share the same world-stage success. l

Listen to your lips Baileys has come up with a novel way to remind consumers about the best way to serve their next drink. It’s running a new on-pack promotion over July and August to encourage people to store their Baileys in the fridge. Once chilled to the perfect drinking temperature, the ‘chill & win’ sticker reveals a unique code that gives access to one month of free DVD rentals from Fatso and a chance to win one of nine Bang & Olufsen entertainment systems. The promotion ends on 31 August 2010. l

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Analysing wine destined for export AsureQuality has opened a new export wine certification laboratory at its Auckland facility following formal recognition by the NZFSA to analyse wine destined for the EU. The laboratory is part of the recent 819 square metre refurbishment at the Lynfield site. Dubbed the ‘Wine Cellar’ because of its location in the customised basement area of the chemistry block extension, the laboratory is staffed by four former ESR Food Safety Group employees previously based at the ESR Mount Albert Science Centre. Between them, team leader Lesley Standeven-Kim and analyst Suzy Watson have over 30 years’ experience in food and wine analyses; and senior scientist Mike Rush, the former manager of the ESR Food Safety Laboratory, over 40 years’ experience in analytical chemistry. Laboratory technician Emily Chu has a post-graduate diploma in Wine Science from Auckland University. The laboratory is already testing a significant amount of New Zealand’s export wine despite having only recently opened for business. WineWorks, New Zealand’s largest contract bottler, has chosen to partner with AsureQuality to provide its customers with an integrated

range of services including export wine testing. “Following our recognition by the NZFSA to analyse export wine and our subsequent partnership with WineWorks, it made sense for us to develop a new wine laboratory that was dedicated to meeting the industry’s standards and quick turnaround times,” says Scott Leathem, operations manager, Auckland Laboratory. “The facility is currently receiving wine for analysis each week and has a turnaround time for results of three days. The testing methods we use for the Wine Export Certification Programme are all based on the EU reference methods and are NZFSA recognised, which means we can ensure the best results possible for our customers,” says Leathem. The range of analyses for the Export Certification programme include Actual Alcohol (distillation/density), Total Alcohol (sugars/alcohol by calculation), Total Dry Extract (density), Titratable Acidity, Volatile Acidity (enzymatic), Citric Acidity (enzymatic), Total Sulphur Dioxide (Monier-Williams) and Total Sugars (HPLC). Sorbic Acid Analyses (HPLC) are also carried out for other non-EU OMARs. l

Bringing back the roast As winter takes a hunger-inducing hold on the nation, Selaks feels it’s time to celebrate our gastronomy by dedicating a day in its honour: Selaks National Roast Day on Sunday 1 August 2010. There are reports that the roast is disappearing from our menus, and a recent survey by researchers at Chatham House shows that steep rises in food prices are likely to consign the traditional Sunday roast to a rare household event within two decades. With a proud 76 year history of bringing family and friends together over good food and wine, Selaks is determined not to see this culinary stalwart become just a page in our country’s rich epicurean history.

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The company quotes writer Edna Ferber: “Roast Beef, medium, is not only a food. It is a philosophy. Seated at Life’s Dining Table, with the menu of Morals before you, your eye wanders a bit over the entrees, the hors d’oeuvres, and the things á la though you know that Roast Beef, medium, is safe and sane, and sure.” l

Growing success for Taylors Wines Clare Valley based Taylors Wines has celebrated a collection of gold medals from two of the most prestigious international wine shows – the 2010 International Wine Challenge and the 2010 Decanter World Wine Awards. Still operated as a family-run business by third generation Taylors, the winery marks its 40th anniversary this year and has a new New Zealand distributor, Hancocks Wines & Spirits. Taylors was awarded a gold medal for its 2009 Estate Riesling at the 2010 International Wine Challenge, the world’s largest wine competition. The competition attracts more than 10,000 entries each year, with an international judging panel chaired by Tim Atkin MW, Charles Metcalfe, Sam Harrop MW, and Derek Smedley MW. Taylors’ success continued at the 2010 Decanter World Wine Awards. Less than 3% of the 10,983 wines entered from around the world were awarded a gold medal, and Taylors 2009 Jaraman Riesling and Taylors 2008 Jaraman Shiraz were among them. Lara Hoye, New Zealand market manager for Taylors Wines at Hancocks says the wins bode very well for the future of Taylors in New Zealand, and are a great opportunity to relaunch the brand now that it has changed distributors. “There is a lot of opportunity for the Taylors brand to

Winemaker Helen McCarthy.

capitalise on the strength of South Australia’s global reputation,” says Hoye. “We will be looking at the retail, restaurant and hotel channels and look to build awareness of the Taylors heritage, awards, and also the new carbon neutral Eighty Acres range.” In addition to winning gold medals at both the International Wine Challenge and the Decanter World Wine Awards, Taylors also shone at the 2010 Concours Mondial de Bruxelles earlier in May, winning gold medals for the 2008 Taylors Shiraz, 2008 Jaraman Chardonnay, 2005 St Andrews Cabernet Sauvignon and 2005 St Andrews Riesling. l

Tick for Pernod A company-wide effort has seen Pernod Ricard New Zealand win the ‘Best Initiative to Improve Employee Wellness’ award at the 2010 New Zealand Workplace Health and Safety Awards held at SkyCity Convention Centre in Auckland. The Awards, in their sixth year, are an opportunity to commend companies from all industries, sectors and regions who make a difference by adding a dimension to health and safety that a traditional focus only on compliance could never achieve on its own. Pernod Ricard New Zealand has the ongoing aim of improving the health and wellbeing of staff and the company developed and implemented a national health and wellbeing programme with a range of initiatives. The comprehensive programme included free health risk assessments, subsidised melanoma skin checks, an intranet site providing ongoing access to health education information, and up to $100 subsidy to help make lifestyle changes, all which have translated into an improvement in the health of Pernod Ricard New Zealand staff.

The Award’s judging team noted the comprehensive nature of the wellness initiative, its support by senior management, peer engagement, programme accessibility to all employees and the considerable improvements achieved in productivity and time lost due to injury. These successes include 75% of all permanent staff partaking in the health risk assessments, 26% reduction in lost time frequency rate over a 12 month period and a 47% reduction in time lost through injuries. Days lost through illness have also dramatically decreased. Pernod Ricard New Zealand managing director, Fabian Partigliani is thrilled with the health and wellbeing programme results to date. “Results are far in excess of our targeted reduction rates but the real winners are the staff – impressive success stories of smoking cessation, significant weight loss, early detection of melanoma skin cancer and an increase in self-confidence through participation in sports, all show the impact the health and wellbeing programme is having for each employee at a personal level,” Partigliani said. l juLY 2010 FMCG

Wild South claims silver Shortly after its release, the Wild South 2009 Pinot Noir, from the region’s lower reaches of the Waihopai Valley, has won silver in the 2010 Decanter World Wine Awards. The vintage is characterised by inviting, sweet floral aromas of violets, balanced on layers of delicate cherry, omega plum and wild herbs. Complex notes of spice, oak and fruit come together to give the structure – rounded with a soft raspberry and blackberry coulis to finish. Wild South winemaker Christie Brown says: “What a wonderful entrance for this stunning new vintage, as our vineyard in the Waihopai Valley gets older, the pinot vines perform better and better. While we were incredibly confident of the wine’s popularity, a

silver from Decanter can only pave the way for even greater success.” The 2010 Decanter Awards are also celebrating a record 10,983 wine entries, more than double the amount when the competition launched seven years ago. Gerard Bassett MW, the world’s only Master of Wine, Master Sommelier and Wine MBA, is an indication of the judging calibre that has made the competition the most sought after in the world. All wines are blind tasted, with 68.8% receiving an accolade in 2010, only 11.9% winning silver and just 2.86% winning the coveted gold or regional trophy. The award-winning 2009 Wild South Pinot Noir is available at wine outlets nationwide at an RRP of $18.90. l

Wine tourism research wins grant Lincoln University doctoral student Daisy Dawson is the toast of the wine world. She has just been named as one of two international winners of Student Grants for 2010 by the Bordeaux-based secretariat of the Great Wine Capitals Global Network. Dawson and Bernardo Conticelli of Florence, Italy, won from 26 applicants from member cities of the Great Wine Capitals Global network, which presented academic research project proposals for judging. The Great Wine Capitals is a network of nine major cities and associated regions in the northern and southern hemispheres which share in common the key economic and cultural asset of access to internationally renowned wine regions. The cities are Bilbao/Rioja, Spain; Bordeaux, France; Cape Town, South Africa; Florence, Italy; Mainz/ Rheinhessen, Germany; Mendoza, Argentina; Porto, Portugal; San Francisco/Napa Valley, US; and the newest member, Christchurch/South Island, New Zealand. Dawson’s prize is a researcher’s stipend valued at €4500 plus €500 for travel to Christchurch from New York where she is currently working, to present her research findings at the Great Wine Capitals’ AGM in Christchurch in early November. The aim of the Student Grants is to promote excellence

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in innovation in wine research. For this year’s award the category was research in biodiversity and sustainability or wine tourism and marketing. Dawson’s winning research proposal, which will be an extension of her PhD thesis, spans the fields of wine tourism and marketing. For her PhD Dawson explored the supply-side of winery owner motivations and business practices connected with wine tourism in Central Otago and the Finger Lakes area of New York. Now her research, funded by the prize, will explore place-based marketing and cross-branding for wine tourism and wine sales from the perspective of winery owners and managers in the South Island of New Zealand, paying particular attention to the potential for leverage that the Great Wine Capitals status of Christchurch/South Island might provide. Dawson’s PhD supervisor, Dr Joanna Fountain, senior lecturer in tourism, says the New World wine regions such as New Zealand and Australia are global leaders in wine tourism practice and research, and her project will “deliver tangible benefits for the ongoing development of this aspect of the wine and tourism industries”. Fellow award winner Bernardo Conticelli will present the findings of his project too at the Great Wine Capitals Global Network AGM in Christchurch in November. l

Widely travelled palate Moa Brewery’s Dave Nichol speaks. By Keith Stewart

Brewer Dave Nichol came to Moa Brewery by the long route, the very long route. Starting with DB he was at Mangatinoka Tui Brewery for 14 years before DB’s new masters, Heineken sent him off to Papua New Guinea and thence to various foreign breweries before he decided (whilst in Saint Lucia), to return to New Zealand. Having purchased a vineyard with the intention of retiring in style, he soon realised that cash flow was important, and in 2007 joined the small but beautifully formed Moa as its brewer. It has been a happy relationship ever since, with craft beer aficionados talking up his beers and giving Moa new respect. It is not that Moa was making poor quality beer, it was just that their range was decidedly limited. As Nichol himself notes, craft beer drinkers want more than the ‘same old same old’. “People who drink craft beers do not have a ‘one beer for all occasion’s attitude’,” he says. “Last night, for example, I had a Dopplebock from Munich as my first, and a Belgian Triple as my second and last for the night. Beer lovers like to mix and match according to the occasion, or the food they are eating, and difference is one of the greatest attributes of good beer.” Which is why, after so many years working in the industrial brewery sector, he now enjoys being a craft brewer. “It is not that there is no passion for quality amongst corporate brewers,” he says. “But craft brewers have much more freedom to develop new beers unhindered by corporate bureaucracy.” He points out that the new beers Moa has launched since he came on board are a critical part of craft brewing market strategy, both for attracting new consumers, and keeping existing ones satisfied. This year Moa’s offerings include a huge, rich, Russian Stout with a truckload of bitterness and a palate longer than an Irish yarn. To follow is a Belgian-styled wheat beer gently spiced with

coriander to stimulate summer palates. Making beers like this, it is no wonder Nichol feels a “greater sense of ownership”, than he did as a small cog in the very large Heineken machine. His position has given him a unique perspective on the current wave of success being enjoyed by craft beers in the country. “In part it is down to quality,” he says. “New Zealand craft brewing has come a long way in 10 years. You would have to go a long way to find a bad craft beer in this country now. “That is the main reason for its popularity, but it is also an international trend of people drinking less but better products. Lion and DB have also been supportive of the craft sector by promoting Mac’s and Monteith’s, but there are many reasons driving change amongst consumers,” he adds. So in spite of the tricky vineyard situation as the world loses some of its enthusiasm for Marlborough sauvignon blanc, Nichol is happy at the top of the South Island where a nest of craft breweries has developed into a little beer drinkers’ heaven. “And I am away from the corporate scene,” he adds. “I now have the ability to spend my time brewing rather than writing reports or talking about plans to do something new sometime in the future.” l

Dave Nichol

juLY 2010 FMCG

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1 2

B E E R VA N A L A U N C H

The official launch party of Bee rvana kicked off in style at the beginning of June. David Cryers, chairman of the Brewers Guild of New Zealand , was on hand to welcome attendees at the Bre w on Quay in Auckland.

FOOD E E R F G L U T EENR G Y S H O W ree & A L Ll to wine, the AucklandelyGlupteopnuFlar with a m From cere y Show was extre ning day. erg or on ope o d e th Food & All t u o g in h tc e queues str

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W OD SHO O F E N FI

1 Tim Watson and Alayna Morgan (Sutt on Group) and Andrew Larsen (Kaimai Brewing Co). 2 Hamish McPherson (Brew on Quay), Neil Hinto n and Jodie Thomas (Lion Nathan). 3 T-shirt worn by Frank Hayes. 4 Jaysen Magan (Mata) and Lou Vandermeer (TLP Printing). 5 From left to right: Andr ew Mawdsley and Paul Sutton (Zymus), Mike Ellwood (Brewers Coop) and Tony Denney (Copack).

A smorgasbor d of offerings was served up at the inau gural Fine Food Show in Auckland.

Has your team toasted the close of day in a remote New Zealand location? Maybe you’ve knocked off a gruelling event for charity or opened a new factory? Preserve the memory – then send it in to editor@fmcg.co.nz.

DIARY

JULY

GOOD FOOD & WINE SHOW PERTH Australia’s biggest gourmet deli, most fascinating kitchen shops and delicious restaurants, Perth, Australia www.goodfoodshow.com.au

3-6

5-7

GOOD FOOD & WINE SHOW SYDNEY Australia’s biggest gourmet deli, most fascinating kitchen shops and delicious restaurants, Sydney, Australia www.goodfoodshow.com.au

GOOD FOOD & WINE SHOW BRISBANE Australia’s biggest gourmet deli, most fascinating kitchen shops and delicious restaurants, Brisbane, Australia www.goodfoodshow.com.au

29-1 AUG

THE FOOD SHOW AUCKLAND ASB Showgrounds, Auckland

11-13

FHC CHINA 2010 The 14th International Exhibition for food, drink, hospitality, foodservice, bakery and retail industries, Shanghai New International Expo Centre (SNIEC) China

20-21

GLUTEN FREE FOOD & ALLERGY SHOW Christchurch Convention Centre, Christchurch www.glutenallergyshow.co.nz

2-4 16-18

AUGUST 28-29

GLUTEN FREE FOOD & ALLERGY SHOW TSB Arena, Wellington www.glutenallergyshow.co.nz

SEPTEMBER 1-2

FOODSTUFFS NEW ZEALAND GROCERY EXPO Palmerston North

GROCERY CHARITY BALL Langham Hotel, Auckland www.grocerycharityball.org

14-17

WORLD OF FOOD MOSCOW International exhibition of food products and drinks in Russia trade.solutions@eurofair.co.nz www.worldfood-moscow.com/eng

OCTOBER 12-14

FOODTECH PACKTECH ASB Showgrounds, Auckland www.foodtechpacktech.co.nz

17-21

SIAL PARIS International meeting place for the food industries, Paris, France www.sial.fr

NOVEMBER 31 OCT-2

SWEETS MIDDLE EAST International exhibition for the sweets and confectionery, bakery, snack food and ice cream industry, Dubai, United Arab Emirates www.sweetsmiddleeast.com

25-25

FGC ANNUAL CONFERENCE Annual members’ conference of the New Zealand Food & Grocery Council, Sydney, Australia www.fgc.org.nz

OWN LABEL SHOW The UK’s private label exhibition, Barbican, London, England exhibiting@ownlabelshow.co.uk

2011

JANUARY 16-18

WINTER FANCY FOOD SHOW San Francisco, USA www.specialtyfood.com

21-30

INTERNATIONAL GREEN WEEK BERLIN Fair for food, agriculture and horticulture, Berlin, Germany www.gruenewoche.de

30 – 2 FEB ISM International sweets and biscuits fair, Cologne, Germany www.ism-cologne.com

FEBRUARY 9-11

FRUIT LOGISTICA International trade fair for fruit and vegetable marketing, Berlin, Germany www.fruitlogistica.com

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

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Trade enquiries to : HEAD OFFICE CH Kevin Calder RISTCH URCH Address: 67 Main National Sales Ma North Road, Kaiap nager oi Post: P O Box 55 DDI: 03 375 50 , Belfast 8030 31 Email: info@helle Email: kevin_cald r.co.nz er@heller.co.nz AUCKLA ND PLANT Address: 10 Ha Cr escent, Wiri, Manukau

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