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JULY 2013 VOLUME 19 No 6 $9.15

THE BUSINESS OF MANUFACTURING • LOGISTICS • SUPERMARKETING

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IT BEGINS WITH YOU.

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contents

Up Front 4 6

Editor’s note Industry news

Category checks

Cakes, Biscuits, Baking ingredients Vitamins and Nutrition

J U LY 2 0 1 3

24 28 32 34

Hydration products Laundry products

Regulars 12

Nargon Trina Snow on embracing technology changes

Recruitment How to retain good employees

Beef + Lamb Trends and opportunities in the meat category

FMCG Online Exclusive features to get you clicking

Fresh and local In season

Fish of the month Seafood NZ serves up butterfish

Feature Free to range

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Health & Beauty

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Vitamins and Nutrition

What’s Hot New products in store

63 64

Subscription form Snap Spotted out and about

Diary Your guide to upcoming industry events

OUR COVER The new Persil Liquid will drive category value..

contents

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

38 41

Grocery business news Proﬁle Dad’s Pies celebrates 32 years

Feature The latest trends in point of sale displays

FGC

J U LY 2 0 1 3

Katherine Rich considers front of pack labelling

Finance Peter Christensen explains the role of financial advisers

Proﬁle BIC celebrates 40 years

Packaging Sustainable solutions for a better future

GS1 Dr Peter Stevens on market access and government-to-government assurances

Convenience store and oil channel updates

Feature Tip Top goes natural

Nargon Trina Snow on rest and meal breaks

55 55

C-store news Resource directory

Feature The future of beer packaging

58 62

BWS news Muscat Keith Stewart considers some extremely drinkable wines

editor’s note VOL 19

NO 6

JULY 2013

ISSN 1175-8279

Incorporating

Serving the business of manufacturing, logistics and supermarketing

TAMARA RUBANOWSKI – EDITOR editor@fmcg.co.nz

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KIM MCINTOSH – BWS ACCOUNT MANAGER Mob: 021 419 468 kimm@mediaweb.co.nz

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Mediaweb Limited PO Box 5544 Wellesley Street, Auckland 1141 115 Newton Road, Eden Terrace, Auckland 1010 Phone 09-529 3000, Fax 09-529 3001 www.mediaweb.co.nz The opinions and material published in FMCG are not necessarily those of the publisher except where specifically stated.

Made to match A new branded content series with celebrity chef Al Brown at the helm is a simple guide to beer and how it matches with food. Made to Match is a very clever concept indeed. It extends from TV to online activities and in-store promotions, with stands for featured products appearing in supermarkets, bottle stores and pubs. Take a closer look at this new multichannel marketing approach on page 58. You will also find some interesting new point of sale trends in this issue on page 42-45. Dilmah founder Merrill J. Fernando and son Dilhan visited New Zealand recently to celebrate Dilmah’s silver jubilee. Merrill brought six decades of tea expertise to the family business and had a vision for ethical and sustainable values long before they became popular buzz words. He gives back to communities and the environment through his MJF Charitable Foundation and devotes his life to sharing authentic single origin Ceylon tea from the world’s finest tea growing regions in Sri Lanka. I hear that he looks after his employees there very well and many stay on for a lifetime. It was a real privilege to meet Merrill and Dilhan again, and to celebrate this significant milestone with them in style at The Langham in Auckland, where High Tea was served, with delightful food designed to match a selection of exquisite Dilmah teas.

Business success is more likely in the long term if the group of talented individuals you have in your business remain in your business, says Kevin O'Shannessey of OCG Consulting. On page 13, Kevin explains why employees are the primary measure of a company’s strength and how you can increase the chances of retaining good people. Insight-based culture is at the heart of Nestlé’s way of leading business and on page 9 you will find some interesting news from the company’s HQ in Auckland. Did you know that the Nestlé trademark was registered here in 1885 and the company has been doing business in New Zealand for 128 years? Nestlé NZ, which is among the top five suppliers to the local grocery trade, has two manufacturing facilities here and employs about 700 people. In celebration of the fourth annual Selaks NZ Roast Day on August 4, we are giving our subscribers the chance to win one of two Selaks NZ Roast Day prize packs. The prize includes a twin pack of Selaks Reserve wine and a limited edition Selaks Roast Day apron. Turn to page 63 to find a subscription form for FMCG to enter for this draw. ‘Roast Day’ is another very smart campaign using a multi-media marketing approach, including wine and foodmatching inspiration that you can download as a free eCookbook at selaks.co.nz/roastday.

Tamara Rubanowski editor@fmcg.co.nz Corporate Social Responsibility Mediaweb supports the following organisations: Official b2b magazine for the Gluten Free Food & Allergy Shows. Media partner Fine Food NZ 2012.

n ews WORK BEGINS ON COUNTDOWN FERRYMEAD Construction has started on Countdown’s new Ferrymead store, which is being rebuilt on the same Ferry Road site as the original Countdown, badly damaged and subsequently closed and demolished following the Canterbury earthquakes. Fencing has already been erected at the site in preparation for the groundwork and foundation engineering to commence. It is expected that this stage will take up to two months and will ensure that the site is quake resistant for the future. By Christmas, local residents can expect to see the main frame up on the site, and ﬁt-out is scheduled to begin. Subject to the necessary approvals being obtained, the store is expected to reopen at Easter 2014. Countdown’s managing director Dave Chambers said the company has remained committed to investing in Ferrymead, and to reopening the store as quickly as possible. “We are excited to be back and ready to get building underway, and we know our community have been watching with interest during the planning phase. We are especially looking forward to seeing Countdown Ferrymead standing again as it was our only store to close following the 2011 earthquake. “It’s great we have been able to honour our commitment to providing ongoing employment for all of our 2,250 team members in the Christchurch area, and would like to thank them for their hard work and support during this time. As most of our original Ferrymead team have now relocated to neighbouring

“We are especially looking forward to seeing Countdown Ferrymead standing again as it was our only store to close following the 2011 earthquake.” Dave Chambers, Countdown managing director stores and areas, we will be looking at recruiting for the majority of our new store team early next year,” Chambers said. At 4,200 square metres, the new Countdown store will be slightly larger than its predecessor and feature an expansive fresh produce section and wide aisles, which will make it easy for customers to navigate the huge selection of groceries on offer. Behind the scenes, the store will also feature a range of environmental initiatives to help minimise the store’s carbon footprint. ●

NEW ZEALAND CHEESE MONTH SET TO LAUNCH

FMCG JULY 2013

keep an eye on the New Zealand Cheese Month website: cheeselovers.co.nz. Further details of signiﬁcant national and regional events and promotions will be revealed soon. ●

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The inaugural New Zealand Cheese Month will launch on October 1, giving cheese-loving Kiwis a month-long excuse to buy, eat and enjoy New Zealand speciality cheese. It is all about celebrating our country’s delicious and diverse range of cheeses, trying new cheese, using cheese in a vast range of recipes and discovering new cheese and beverage pairings. Driven by the New Zealand Specialist Cheese Association, New Zealand Cheese Month will be marked throughout the country via various regional and national events, in-store promotions, tastings, demos and much more. To ﬁnd out what’s happening in your region and how you can get involved in and support New Zealand Cheese Month,

Could your business save money just by switching power companies? When she found out her electricity prices were about to increase, Marie Taylor, owner of Plant Hawke’s Bay, thought it would be a good time to see if she was actually getting the best deal on her power.

ELA0194/07

“I went straight to the What’s My Number website and had a look. It was really easy, all I had to do was grab my power bill, answer a few easy questions, and a few clicks later I discovered I could save about $1000 a year if I switched to a different power company. That money will help me pay off the overdraft, and it’ll let me reinvest in my business. There were eight different suppliers who submitted prices to me, so all I did was choose the one that suited best, and the rest of the process was taken care of by them. What’s My Number is a fantastic tool and I recommend it to any business.”

Find out if you could save at whatsmynumber.org.nz/mybusiness

n ews BLUEBIRD CELEBRATES 60 YEARS Bluebird, one of the biggest snack food manufacturers in the country, is celebrating its 60th birthday this year. The Kiwi heritage brand has provided Kiwi families with outstanding quality and great tasting snacks since Bluebird opened its doors in 1953, just a few years after young entrepreneur Les Saussey started selling popcorn and then potato chips at the Western Springs Speedway in Auckland. Les started out small but the popularity of his Bluebird chips quickly grew and he soon expanded his range of ﬂavours to include Ready Salted, Salt & Vinegar and Chicken. In those days you could buy a packet of Bluebird chips for 9 pence. Now, Bluebird is one of the biggest snack food manufacturers in the country with products such as Bluebird Potato Chips, Doritos Corn Chips, Grain Waves, Twisties, Rashuns, Burger Rings and Cheezels. Bluebird Group brands manager, Jodene Nigro is thrilled about the milestone and says: “Bluebird chips are a slice of Kiwi life; they have been for the last 60 years and will be for the next 60. We all share memories of eating Bluebird chips in front of the game or at the BBQ and I’m pretty sure most of us have eaten Cheezel rings from our ﬁngers at some stage! “Making the best tasting chips remains at the heart of everything Bluebird does and that is why we are New Zealand’s favourite chip! Reaching this great milestone for an iconic New Zealand brand really is a celebration for all New Zealanders,” she said.

To celebrate, Bluebird are bringing back old Kiwi favourites ‘Bluebird Discos’ (available now) and ‘Grainwaves Pipes’ (available from August) and are giving Kiwi families a chance to win a great Kiwi escape to go see a beautiful ‘chip’ of New Zealand through an exciting consumer promotion, which ran on Bluebird packs in June. Bluebird are also re-living 60 years of Kiwi history via a 60-days “favourite Kiwi moments” celebration hosted on the new Bluebird Facebook page (www.facebook. com/bluebirdnz). The page provides an opportunity for Kiwi families to share their own favourite memories and win lots of prizes. Bluebird is committed to great quality ingredients such as locally grown potatoes and corn. The potatoes used are grown all across New Zealand, in the Waikato, Hawke’s Bay and Pukekohe. Bluebird is operating from Manukau in Auckland and its vision is to be New Zealand’s fastest growing and favourite convenience food company. In 2010, as well as winning the sought-after Westpac Manukau Business Excellence “Business of the Year Supreme Award”, Bluebird also won the Brookﬁeld Lawyers Employer of Choice Award and the EMA Excellence in Manufacturing Award. Bluebird also proudly supports the community with its “helping hand committee” and on-going commitment to the Salvation Army. ●

WOOLWORTHS LAUNCHES ‘MEET THE GROWER’ QR CODE Woolworths in Australia is set to roll out a new quick response (QR) code from July 1, which will help its customers get to know local fruit and vegetable growers. ‘Meet the Grower’ packaging includes the farmer’s photo, URL, length of time supplying Woolworths and a QR code that ,when scanned, will allow customers to access more detail about the grower. The ﬁrst product to launch the programme will be apples from

FMCG JULY 2013

fruit supplier Montague Fresh. The code will appear on the packaging of 57 products over the next two months and on close to 100 products by Christmas 2013. Woolworths supermarkets’ head of produce, Paul Harker, said the QR code was developed in response to customer demand for transparency about where their fresh food comes from. According to Harker, 96% of fresh fruit and vegetables sold at the supermarket chain is Australian grown. ●

n ews NESTLÉ WELCOMES PURINA TEAM TO HQ Nestlé Purina pet care division officially took up residence at the company’s New Zealand headquarters in Parnell, Auckland. On June 25, Swiss Ambassador Dr Marion Weichelt Krupski opened the Nestlé New Zealand offices with a ribbon-cutting ceremony, marking the conclusion of a two-year project to have the Nestlé team together in one office. The Nestlé Carlaw Park office will house all parts of its business: Food & Beverage, Infant Nutrition, Nespresso, Professional and Purina, as well as its joint venture businesses CPW and Galderma. Nestlé, the world’s largest food and beverage company, is Switzerland’s third highest ranked company in terms of revenue and 2013 is a significant year for Switzerland and New Zealand. It marks the 50th anniversary of trade relations between these two countries that have a lot in common beyond pristine scenery. Veronique Cremades, CEO and country manager of Nestlé NZ, says: “having all employees working from one site will lead to powerful, united team work and will provide countless opportunities for personal growth and career development. It will promote a great working culture in a Four Green Star working space with contemporary design that promotes cross functional working relationships.” But it’s not just the dedicated employees of Purina moving

Lal Mayer, Country Business Manager, Nestlé Purina NZ; Swiss Ambassador to New Zealand, Marion Weichelt-Krupski and Veronique Cremades, CEO and Country Manager of Nestlé NZ with canine visitors at the ofﬁcial opening ceremony.

into the Nestlé offices, the canine counterparts will be a valued addition to the Parnell Headquarters – with the Purina team encouraged to bring their furry companions into their pet-friendly environment (which is part of the same office, but physically separated from other divisions). The Purina office space even includes a doggie-door in a meeting room to facilitate ultimate canine convenience, as insight-based culture is at the heart of Nestlé’s way of leading business. ●

JULY 2013 FMCG

n ews ENTRIES OPEN FOR NZ FOOD AWARDS The search for New Zealand’s most creative, innovative and tasty food products has begun. Entries are open for the 2013 NZ Food Awards and the range of categories is designed to cater for a variety of product entries, for companies big and small. Winners will be selected on the basis of excellence and innovation. Products need to be manufactured in New Zealand and commercially available in the New Zealand marketplace at the time of judging. The NZ Food Awards, in association with Massey University, have been running since 1987, and chief judge, Masterchef New Zealand’s Ray McVinnie, says he’s anticipating a step up in the quality of products presented to the judging panel this year. “Since the awards began, New Zealand food has come a long way in terms of quality and innovation. We have a lot of talent in the food industry, and the NZ Food Awards are an opportunity to recognise those businesses that foster excellence and innovation with food.” A new category, the Outstanding Contribution Award, will recognise an individual or company who has made an outstanding contribution to the New Zealand food industry. Attributes of the winning recipient will include innovation, leadership and determination. Another new category, the Healthier Choice Award, recognises

food designed to meet speciﬁc nutritional needs, including gluten free, low GI, and those with major reductions in fat, sodium, or carbohydrates. In addition to the wide range of awards categories on offer, entrants will gain access to industry focus groups and business capability workshops led by NZ Food Awards NZ Food Awards chief judge, Ray McVinnie. strategic partners, including AsureQuality, Countdown, KPMG, Rabobank and the Ministry for Primary Industries. ●

KEY DATES Entries close – July 19 Judging period – August 7/8 Finalists announced – August 29 Gala Awards Dinner (Auckland) – September 19 For all entry criteria, forms and further information visit foodawards.co.nz

NZ CHEF GOES WILD range of ready-made Award-winning executive chef Mark r soups, including Kumara, Harman continues to tempt taste s Coconut and Lemongrass, buds with the latest from his signature C a hearty Smoked SEASONS Gourmet range – Wild Kahawhai Chowder and Mushroom and Truffle Oil Soup. K Pumpkin, Parmesan and This soup brings an array of earthy natural Pu Basil flavours such as Portabello and delicate Ba soup. The range also includes Fresh Basil and wild mushrooms infused with the richest inc Roasted Pine Nuts pesto of mascarpone and finished with a light Ro and Sicilian Aubergine and dash of white truffle oil for that lovely Marcona Almonds pesto. aroma and touch of class. Ma Harman was formerly head An entrepreneurial chef with 18 years of Har chef experience and a passion for delicious, che at Dine, Bellota Tapas Bar, Huka Lodge and the fresh and healthy food, Mark’s vision is to Executive chef Mark Harman. n. luxury bring a gourmet experience to our homes. luxu Amanyara Hotel in the Carribean, and he is now executive chef of the recently “I wanted Kiwis to be able to recreate opened Salt restaurant in Auckland. a fine dining experience in the comfort of their own dining The SEASONS Gourmet range is available in the chiller in 150 rooms,” says Harman. supermarkets nationwide. Other new products are in the “SEASONS Gourmet products have distinctive flavours and are pipeline as Harman plans to expand the range with fine dining made using locally sourced ingredients.” ready-made dishes soon. ● Under the SEASONS Gourmet brand, Harman has created a

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n ews NEW NAME FOR KRAFT FOODS NZ Kraft Foods in the Asia Pacific region, including New Zealand, changed its company name to Mondel z International on July 1. The move came as part of the global change in October, when parent company Kraft Foods. split into two independent companies – Mondel z International and Kraft Foods Group. Julia Fraser, corporate affairs manager – Snacking Australia & NZ, says, “Over the past few years, our business has been known as Kraft – part of the fastest growing food manufacturers in Australia and New Zealand, building iconic brands like Vegemite, Cadbury Dairy Milk, The Natural Confectionery Co, Buzz Bar and Chocolate Fish. “We’ll now be known as Mondel z International, with a new look and a new name. But even though these things are changing, what we do and why we do it remains the same,” she says. Alastair de Raadt, managing director of Cadbury NZ adds, “As part of the Mondel z International family, Cadbury will continue to make family favourites and are committed to continuing to innovate to create new delicious products for consumers to sink their teeth into. Last year we introduced 12 new products alone in New Zealand. Innovation is one of

the keys to the success of our business, and to a sustainable manufacturing and food industry in New Zealand.” Mondel z International is one of the fastest growing food manufacturers in New Zealand. It is one of the world’s largest snacks companies, with products available in 165 countries, and global net revenues of $US35 billion in 2012. The company employs 110,000 people in more than 80 countries. About three-quarters of global annual revenue is generated in the fast-growing biscuit, chocolate, gum and candy categories, and more than 40% of sales is generated from high-growth developing markets. ●

JULY 2013 FMCG

na rgo n

Embracing change Technology is an integral part of the shopping experience, says Trina Snow. Trina Snow Snow, executive director, NARGON.

A customer completes their grocery shopping and wheels the trolley straight out the door without stopping at a checkout to pay. For most stores, that currently would be shoplifting. However, this scenario may actually be the way of the future when radio tags on the grocery items are read as the shopper leaves the store and the bill is automatically paid by the shopper’s credit card through their Smartphone. It sounds far-fetched, but German shopping outlet Metro recently introduced a system where radio frequency identiﬁcation (RFID) tags on grocery items transmitted pricing information to the trolley. As a result, shoppers basically only have to scan their trolley at checkout to pay for all their purchases. Clearly, that system has not added the automatic payment function, but managing director of Coles in Australia, Ian McLeod, said: “I can envisage stores where people have all their credit details in their phone and are able to pay without physically having to go to checkout counters.” There is no doubt that technology is already changing the way that people shop and how supermarkets interact with their customers. Customers are increasingly embracing self-checkout technology, though we remain a long way behind Britain. An Australian National Retailers Association survey of 1000 people showed 38% used a phone or tablet to compare grocery prices in the past six months, compared with 27% late last year. That is a big leap. Many NZ supermarkets are embracing technology and the trend is only going to accelerate. In a recent media report, Countdown said offering free Wi-Fi in its 165 stores was ‘on its radar’, while rival chain Foodstuffs said it was considering expanding a trial under which it is offering free Wi-Fi at some of its New World and PAK’n SAVE stores. Woolworth’s trialled free Wi-Fi in two Sydney supermarkets last year. Free Wi-Fi is now offered by a number of city councils and

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has long been a staple of establishments as diverse as McDonalds, buses, bars and Starbucks. Expanding this service to supermarkets is a logical progression. Free Wi-Fi would encourage shoppers to use their Smartphone to look up recipes, check their electronic shopping lists, access on-line specials and/or use supermarket-speciﬁc applications (apps). The Countdown app has been downloaded by 200,000 people – a very respectable number in the New Zealand market. It lets shoppers scan barcodes, create shopping lists and locate items in aisles. The app can organise items on the shopping list by the aisles where they are stocked at the customer’s local supermarket and the phone will guide them while they shop. Increasingly, supermarkets here and abroad are developing apps to improve their customers’ shopping experiences. The big chains are fully involved with apps for giants such as Sainsbury’s, Tesco, Asda, Morrisons and Waitrose. Some are better than others with Tesco near the top with a range of functionality, while the Waitrose app only offers recipes and seasonal food recommendations. There are a number of young app development companies springing up around the country which can produce quality apps locally at a reasonable price. PAK’n SAVE has installed touch screen terminals at three supermarkets that let shoppers pick what music is played. There are 3500 songs available, including a selection of Kiwi music, and the plan is to install terminals in all stores by the end of the year. This concept is not new – diners had jukeboxes way back in the ﬁfties – but the technology has become more accessible, more dynamic and more resistant to people requesting the same song 15 times in a row. Once selected, the same track cannot be played for a couple of hours. This protects both customers and particularly staff from endless repeats of Lady Gaga, or worse. Now, we admit NARGON is not exactly at the vanguard of technology use. As an industry body we face different pressures and priorities than stores interacting directly with customers. Smartphones, QR codes, radio tags and social media will all become increasingly important in the future and stores need to be ready to embrace the change.

recr u itm en t

Retaining good employees People are the primary measure of strength, says Kevin O’Shannessey. When you deal with people as much as you do in the world of recruitment, you realise the unpredictable is the most predictable thing you can rely on. There is no science or formula that will guarantee how you can ensure a team of great people will remain working together for a long period of time and that no one will resign to head for perceived greener pastures. I am convinced however, that business success will increase year upon year if the group of talented individuals you have in your business remain in your business. Reﬂecting on the many FMCG businesses that I have worked with recently (both large and small) there appears to be a real trend. The businesses that have had a trustworthy, effective and long standing leader have retained good people and increased success. The organisations who have had change in key positions and change in personnel generally have struggled to create success and attract the best people. I believe it is the primary measure of the strength of an organisation. If an organisation does loose a key person, it is either a sign that other people are looking, or a catalyst for individuals to do so. Here are some thoughts on how to increase the chances of retaining good people. Ensure people have fun at work! We spend a lot of time working with our colleagues and if the word fun doesn’t enter your mind when you reﬂect on recent days in the work place then it’s time to do something about it. Celebrate success, either as a team or through

Kevin O’Shannessey

acknowledging stand-out performances. Manager – FMCG Sales & Create opportunities to provide new and Marketing, OCG Consulting. fresh challenges for individuals. I have seen some organisations put successful marketers into key sales roles and vice versa. The roles would never have been possible for these individuals externally, but retained, developed and grew these people within the business that they worked for. Have a collective vision or plan for your team that you manage. Keep the vision fresh and relevant. If you don’t manage people ﬁnd out what the vision is from your leader. Somehow create an environment where constructive feedback can be given. Build a culture amongst the business that is real and authentic. Learn to be an effective leader – more people leave the organisation because of their leader, not because of the organisation or role. And of course, compensate competitively... The FMCG industry is not a walk in the park as we often mention. It’s important that leaders do all that they can to make the organisation that you represent a place that people want to remain working in. In conclusion, look at your team around you. If you feel they are a team of individuals who perform at a level as good as any other FMCG business then do something about retaining them. We’re all in positions of inﬂuence, so whether you lead or are lead, make a difference!

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b ee f + la m b

Selling by story telling Ashley Gray, marketing & communications executive, Beef + Lamb New Zealand Inc.

Ashley Gray, Marketing & Communications Executive, Beef + Lamb NZ on trends and opportunities within the meat category.

This year marked a milestone for Retail Meat New Zealand as the organisation held its 80th Annual Conference. The conference was held at the Devon Hotel in New Plymouth and past presidents and members were also included on the invite list to help celebrate the occasion. The theme for this year’s conference was: Tradition vs. Technology – where do you ﬁt? Delegates heard from an array of ﬁrst-rate speakers, but one extremely relevant presentation, not only for supermarkets but retailers in general, was delivered by Murray Johnston, general manager Merchandise for Progressive Enterprises. His presentation ‘Meeting the needs of consumers – a retailer’s perspective’ offered a number of insights into the current trends and opportunities within the meat category.

According to research undertaken in 2012 on behalf of Beef + Lamb New Zealand, one of the biggest barriers to purchasing beef and lamb is simply lack of cooking knowledge. Since this appears to be a generational barrier it’s hard for some retailers to take on board, however it has become one of our most important issues and one of the biggest opportunities in our market today. Johnston also suggests that along the way, as a collective, we’ve started referring to the meat category as the ‘protein category’ and the beef farmer as the ‘protein farmer’, which is only doing ourselves a disservice. At the retail level we’re removing the romance; the enjoyment; the story behind New Zealand beef and lamb. “The problem is when you start calling it protein, look who else you’re introducing... baked beans, chickpeas, lentils... We’re broadening the market and wasting the opportunity,” he says. As times change and new technology is introduced, the way in which we market our products is also changing. Instead of relying on beneﬁts and limitations of a product, consumers want to be told a story.

BRAND STORIES

RMNZ Past President David Baines opens the 2013 Conference.

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So where does social media ﬁt into the equation? Johnston explains we’re able to use these platforms when selling by story telling. Social media gives the consumer a more interactive experience. Sites such as Facebook and Twitter offer retailers the chance to further develop brand stories by interacting directly with their customers. The development and use of tools such as QR codes in store has the ability to connect customers with more information or recipes instantly. The way in which technology is advancing, not to mention the speed, means this will only continue to ring true. The key outtake from Johnston’s presentation is this: In a world that’s changing, especially with technology, people are also expecting a change in the way we market our products and brands. There are new opportunities in terms of selling our products and if we want to stay relevant and exciting we need to take advantage of these. We know what consumers want; so let’s make that happen!

What’s online

fmcg.co.nz FMCG has a few web exclusive features to get you clicking.

NZ COFFEE SCOOPS INTERNATIONAL MEDALS Whatever the industry or sport, Kiwi medals secured on Australian soil are the most valuable of them all! We reveal who scored three medals at the inaugural Australian International Coffee Awards on fmcg.co.nz

LED GOES MAINSTREAM PLANNING FOR ANUGA In 2013, Anuga is once again positioning itself as the largest and most important global trade fair for the food sector. Find out more – plus all you need to know to visit or exhibit – online at fmcg.co.nz

NEW PRODUCTS From sweet treats to the latest in health & beauty, take a sneak peek at some exciting product launches online.

LED lighting is becoming increasingly accessible to consumers. Philips expects at least 50% of global lighting to be LEDs by as early as 2015, and 75% by the end of this decade. For more info about the latest lighting product trends visit fmcg.co.nz.

SAFE SHOPPING ONLINE We reveal eight top tips from MasterCard New Zealand country manager, Albert Naffah, on fmcg.co.nz

PL US An extensive archive of previous issues of FMCG you may have missed as well as news, category reports and more.

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

IN THEIR PRIME Green kiwifruit, persimmons, lemons, limes and mandarins. Yams, chokos, parsnips and carrots, main crop potatoes. Excellent fennel bulb, celeriac and Brussels sprouts. Kahawai, piper, hoki, ling, blue cod and tuna. The Paciﬁc oysters are in great nick.

SHOT TO BITS Feijoas have about done their dash. New Zealand grown tomatoes, aubergines, capsicums and courgettes are hard ﬁnd.

FMCG MAY 2013

FISH & SEAFOOD Blue cod Now this really is a good time for this delectable white fish. It has a lovely texture, delicate flavour and is very easy to handle. Not the cheapest fish in the sea but worth the price every time; and from the further south the better. It’s Blue Moki season and this fish is well priced at this time of year. Butterfish is a wonderful fish and one of my favourites. Often known as green bone in the south it hangs around inshore kelp forests. It is a delicate flavoured white fish that is particularly suited to steaming gently with a touch of ginger, lemon, garlic and fresh coriander. Flounder are harder to get hold of at this time of year as they tend to semihibernate over the winter months. Hake Quite lovely eating if treated gently. The short fresh season for this delicate fish starts this month. This is the season for fresh hoki, it is always well priced and people should try it fresh not just frozen-fried. Kahawai 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. Ling The fresh season for ling runs until November and the fresh fish is a surprisingly lovely fish to eat, if not to look at. The frozen and smoked product is also available. Orange roughy The fresh roughy season is not far off. Piper is most abundant over winter and likely to be available but there are not a lot of fishers for this delectable little fish. Salmon, quinnat, Chinook, or king - call it what you will it is a great product and New Zealand farms more of this fish than the rest of the world put together. Trevally Yes, ...again I am pushing this fantastic common fish. The main season is over and there is less in the market, but it is of better quality over winter and still well priced. This is fish

that needs to be turned over quickly as it is not a long keeper. Warehou is a good southern species in this is available in winter and at a very good price.

MEAT Generally the news is not too bad on the red meat front but all prices are likely to steadily rise. Lamb prices are trending up, especially in the north where quality animals suitable for the FMCG sector are more difﬁcult to source. But lamb is still good buying compared with this time last year. Mutton prices continue to stay comparatively low. Beef Local trade prices have lifted in response to dwindling supplies, but beef is still good value as this rise is starting from a low price base. We can expect a steady slow rise in prices over the next month or so. Venison Generally the price is still fairly ﬂat, although there was a tiny rise in venison schedules at the end of June. Prices may very well begin to climb

as we move into the chilled carcass season. But looking forward venison is likely to be one of the better buys in the high end meat market.

FRUIT Apples The New Zealand seasonal apples are still available and still good quality so we will not need to put imported rubbish on the shelves just yet. Avocados Watch the quality until the new seasonâ&#x20AC;&#x2122;s fruit come onto the market. Chestnuts are in season, but as usual hard to ďŹ nd in this country, then again hazelnuts are starting. If people see them with your produce they will likely buy them. Citrus New Zealand lemons are back, thank goodness! New Zealand mandarins are well in. Early New Zealand oranges will start to show up and limes have been in the markets for a while. The season for feijoas is about ďŹ nished. Now is the time to push Kiwifruit as the main crop is in and prices and quality remarkably good (even considering the supposed PSA kiwifruit disease issue). Longans and lychees (imported) 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 and is a very ďŹ ne fruit. Pears 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 This is another good early winter fruit and will hang around for a month or two. Tamarillos are available for those who can get a mortgage.

VEGETABLES Is it again the time for a root? It surely is; yams are deďŹ nitely a good option at this time of year as are carrots, parsnips, swedes, the other turnips including kohlrabi, celeriac, and main crop and Maori potatoes. Fennel bulb, onions, and of course leeks will all be in the best condition at this time of year. In fact this is the time to buy in all the roots, bulbs and stems that grow on or under the ground. These winter vegetables are all at their very best and very good buying. Also the Jerusalem artichoke has more visibility in the marketplace these days, I suspect in part because people are more exposed to the Jerusalem artichoke in restaurants. So you will ďŹ nd that customers are starting to catch on to this wonderful root vegetable. Brussels sprouts are at their best and the cost is coming back. Capsicums and aubergines are mostly imports at this time of year.

There will be a few New Zealand hot house fruits around, but expensive. Celery is a very good buy at present and the quality is also very good. Chokos are slowing but it keeps well so you will still be able to get it until mid August or so. Garlic grown in New Zealand is getting scarce, but plenty of the Chinese rubbish about (but it is cheap). The imported American stuff is much better quality, but you have to pay for it. Leeks are deďŹ nitely a good option at this time of year and plentiful again. Mushrooms are our third most popular vegetable and always great quality, though prices seem to have steadily increased over the past couple of years. Shallots are hard to ďŹ nd and will become harder.

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The firm white flesh will work well in many styles of cuisine and with a wide variety of ingredients, from intense Asian flavours to creamy sauces or winter citrus.

FISH OF THE MONTH Seafood New Zealand serves up butterfish – the succulent seafood.

The delicate and delicious butterﬁsh is endemic to New Zealand. Caught year-round, butterﬁsh availability peaks in winter, making it ideal for our plates this July.

Taste and texture Butterfish is mild in flavour and has firm flesh with medium to thick flakes. A white-fleshed fish, it is incredibly versatile and can be used in most recipes that call for gurnard, blue cod, snapper, groper, warehou or terakihi. Butterfish is wonderfully tender and moist when cooked, hence the ‘butteriness’ it is attributed with. Bake it, marinate it, poach, smoke, grill or fry your butterfish. The firm white flesh will work well in many styles of cuisine and with a wide variety of ingredients, from intense Asian flavours to creamy sauces or winter citrus.

Nutrition

ABOUT FISH OF THE MONTH Seafood New Zealand’s Fish of the Month programme is a simple concept that puts the spotlight on one seafood species every month, pulling together research, information and graphics in an engaging way for New Zealand consumers and available online at ﬁshofthemonth.co.nz. Fish of the Month is an initiative of Seafood New Zealand, the national body representing the seafood industry at a national and international level.

FMCG JULY 2013

Butterfish is a source of several nutrients important for human health, including iodine, iron and magnesium. A recent study in the UK has suggested an adequate intake of iodine during pregnancy is important as iodine is an essential nutrient for foetal brain development and that iodine deficiency may result in a baby having a lower IQ. While this study was conducted in the United Kingdom, recent evidence from a number of studies has indicated a re-emergence of iodine deficiency in New Zealand.

Common name confusion A ﬁsh by any other name? Not quite. New Zealand butterﬁsh (Odax pullus) are also known as ‘greenbone’ for

the colouration of their bones. They should not be confused with other species known as butterfish such as walu, escolar, American butterfish (Peprilus triacanthus) or Japanese butterfish (a warehou species).

Sustainability The main butterfish fishery is centred on Cook Strait, between Tasman Bay, Castlepoint and Kaikoura; a smaller fishery is located around Stewart Island. They are targeted commercially by set nets in shallow coastal waters, principally around kelp-beds. Butterfish were introduced into New Zealand’s Quota Management System (QMS) in 2002.

Want to know more? The Fish of the Month website equips Kiwi consumers with an array of easyto-understand information about consuming the selected species for all of its benefits. Available are further information resources on nutrition, pricing, availability, meal ideas and sustainability information. Find out more about butterfish at www.fishofthemonth.co.nz.

ORANGE INFUSED FISH PARCELS Time: 50 minutes Cooking method: Barbecuing Ingredients • 50g butter • 1 onion, diced • 1 tspn fresh ginger, grated • 1 clove garlic, crushed • 1 orange, zest and juice • 100g Japanese breadcrumbs (Panko)

• • • • • • •

15mls orange liqueur ¼ cup Italian parsley, chopped salt and freshly ground pepper to taste 2 tbspn water 4 x 120g butterfish (or other white fish) fillets 1 orange, sliced extra virgin olive oil for drizzling

Cooking method 1. Preheat barbecue grill. 2. Lay out four sheets of baking paper and spray well with baking spray. 3. To make the citrus stufﬁng, place a frying pan on a medium heat and add butter. Sauté onion until soft, then add ginger and garlic. When fragrant, add orange zest. 4. Remove frying pan from the heat, and stir in breadcrumbs. Add orange juice, orange liqueur and parsley. Season with salt and pepper. Add a small amount of

Image from The New Zealand Seafood Cookbook. Text by Auckland Seafood School and contributing chefs; with food photography by Sean Shadbolt. Published by Penguin Group NZ. ©Auckland Seafood School, 2009.

water if the mix is too dry. Lay fish fillets on the baking paper and place citrus stuffing over half of each fillet. Fold each fillet of fish back over itself to encase the stuffing. Place 2 slices of orange on top of each folded fillet and a drizzle of

oil – this will form a light sauce. Season and fold the paper to enclose the stuffed ﬁllets. Place on grill side of the barbecue on a medium heat and cook for approximately 5 minutes on each side. Open parcels and serve.

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Free to range Raising the standard of animal welfare in New Zealand.

HAPPY eggs joined happy bacon last month, when Freedom Farms added free range eggs to its offerings. It’s a match made in heaven and the people who brought you the first SPCAapproved bacon available in New Zealand are very proud to introduce Freedom Farms free range eggs. Freedom Farms has dedicated its first six years to improving the welfare of pigs and it seemed only natural to extend this to chickens, resulting in the world’s first happy bacon and egg company! Instead of supporting the proposed move from battery cages to the ‘onlya-bit-bigger’ colony cages, they’ve decided to create free range paradise: A free range egg option consumers can truly trust. “Here’s the thing: There are about 40 brands out there saying they are free range, but not all free range farms are the same,” says Gregor Fyfe of Freedom Farms. “There are good ones and notso-good ones: Some with large industrial size flocks, some small; some that have loads of grass, shade and space per chook, some that don’t; some who welcome auditors and some who are not keen at all. The 20

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“The fact that there are only voluntary standards when it comes to labelling eggs ‘free range’ means there are many inconsistencies.” Gregor Fyfe, Freedom Farms

fact that there are only voluntary standards when it comes to labelling eggs ‘free range’ means there are many inconsistencies. So how do consumers know which ones to support? “Freedom Farms is a brand which doesn’t believe in ‘a bob each way’ when it comes to farming their piggies, and the same goes for their chooks too. They don’t need to tell you which of their products are farmed the ‘kind’ way – they all are,” said Fyfe. “We like the idea of finding the really good free range chook farms, and only putting their eggs in our boxes,” he continues.

“That way, everyone who wants to buy eggs can always be sure they’re getting them from the genuine good guys. They don’t have to think about it.” And you don’t have to take their word for it – the SPCA has independently audited each and every one of their farms and given Freedom Farms eggs the SPCA Blue Tick. Freedom Farms free range eggs are available at specialty stores and supermarkets nationwide from July, handily labelled from size M through to XL. For stockist details email us@freedomfarms.co.nz

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GREEN MEADOWS Green Meadows Beef was launched in 2012, when the Carey Family realised that the best New Zealand beef was often going offshore. Their 100% grass-fed, free range animals are farmed on Taranaki’s lush green pastures, at the foot of Mount Taranaki and only a stone’s throw from the popular Green Meadows surf break. Angus in breed, the Green Meadows beef steers are scattered across the 420-acre Carey family farm. All animals are farmed ethically and fed their natural diet. This includes drinking household quality water from troughs supplied by the Cold Creek community water scheme. The Carey family believes that small details like this give their beef a superior flavour, colour and texture when compared to regular supermarket beef. The business is a true family effort, led by Michael and Margy Carey, and their sons, Nick Carey, Brent Carey and Karl Carey. After 30 years in the New Zealand dairy industry, Michael was drawn to the opportunities presented by farming grass-fed Angus beef. His extensive

knowledge of animal management is complemented by Nick Carey’s business and marketing expertise. Green Meadows Beef prides itself on providing customers with full food traceability. They showed their commitment to this by launching their own butchery in New Plymouth in April 2013. Green Meadows Beef is aged (bone in) for five to seven days in a chiller before it is cut by full-time Green Meadows Beef butcher Pat Hogan, who has over 25 years experience. Cuts available range from top quality eye fillet, scotch fillet, sirloin, and rump steak to beef sausages, casserole beef, schnitzel, premium beef mince and roasting cuts. Green Meadows Beef is sold in a number of gourmet food stores, including Farro Fresh in Grey Lynn, Auckland; Moore Wilson in Wellington and Fresha in New Plymouth. It can also be purchased directly from Green Meadows Beef, by shopping through their custom website. The beef can be purchased in a range of boxes starting from 5kg, which is proving popular with families and those making informed decisions to buy direct from the

Michael Carey of Green Meadows Beef.

farmer. All Green Meadows Beef boxes are delivered throughout New Zealand free of charge. For more information about Green Meadows Beef and to order online, visit greenmeadowsbeef. co.nz. You can also follow them on Twitter at @getbeef and via their Facebook page. JULY 2013 FMCG

INNOVATION-LED GROWTH have provided consumers with an Chicken, one of New Zealand’s most popular proteins, continues to experience expansion, with free range one of the key drivers of this growth. For Ingham, one of New Zealand’s largest and leading free range chicken suppliers, value, quality and product choice have been vital factors supporting this growing demand. Ingham’s free range volumes have doubled in the last two years, now making up over 7% of its total poultry volume. Leading retail brands such as Waitoa

ever-growing range of line extension products to meet their free range needs. Much of this consumer demand has been influenced over recent years by the proliferation of media-fuelled programming and cooking shows. The impact has, in part, shaped the eating habits of the modern Kiwi household, with many becoming ‘food enthusiasts’ who more regularly seek out free range products as part of their shopping criteria. Product innovation has been at the forefront of Ingham’s business growth and this focus has been extended to free range. Having successfully launched the first free range packaged frozen range (Waitoa Green Box) in late 2012, Ingham continues to target those shoppers seeking free range, but with benefits of convenience. With the modern Kiwi family in mind, two new products have been added to the Waitoa range in the fresh value enhanced segment. Waitoa Butterfly Chicken and Family Winter Roast are both perfect seasonal options for busy consumers looking for quick and easy-to-prepare meal choices. Jonathan Gray, Ingham’s national

sales manager says, “We are committed to innovation, which is the result of a very dedicated product development team focused on delivering exceptional products that meet the market need. Working closely with our retail customers ensures we deliver innovation that builds demand.” Waitoa free range chicken was born out of a desire to offer customers tasty, juicy and nutritious chicken. Grown in the green, sunny valleys of the Waikato region, Waitoa chickens are raised under externally audited free range standards and have access to open space during the day. The birds are provided quality care that ensures an exceptional quality free range product.

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Baked delights Baking and ready-baked goods remain very popular, with indulgence and on-the-go consumption among the key trends. “GRIFFIN’S Foods is the market leader in the biscuits category with over 120 years of baking expertise and creating beloved Kiwi brands,” says James Clark, senior brand manager. “Griffin’s has 19 out of the top 20 sweet biscuits in grocery, including Toffee Pops, MallowPuffs, Squiggles, Gingernuts, Super Wines, Cookie Bear Chocolate Chippies and Shrewsbury,” he says. In July 2012 Griffin’s brought back Choco-ade, a biscuit famous in the 1980s but deleted in the 1990s. This launch came off the back of passionate biscuit lover, Amber Johnson’s campaign for the return of the classic biscuits. “Amber started a Facebook page that quickly attracted a groundswell of support and was soon noticed by us at Griffin’s. The vote was put to the public and more than 14,500 votes were cast by New Zealanders to bring back Choco-ades. The decision was made to re-launch the biscuit with an orange flavoured filling and chocky top that was popular over two decades ago and the biscuits were put into production and back on supermarket shelves for consumers to enjoy once again,” says Clark. He adds: “The launch of Griffin’s Choco-ades was the biggest product launch for a single SKU in recorded

FMCG JULY 2013

grocery history (source: Aztec data). To achieve this, Griffin’s leveraged the power of social media prior to the launch. All of this resulted in Choco-ade becoming the number one selling biscuit after only one week on the market, almost twice that of the number two selling biscuit. Choco-ade sold over 320,000 packs and achieved $1m retail sales value in its first three weeks. Our customers said they had never seen demand like it before,” comments Clark. He says: “This was without a doubt the most successful launch of any sweet biscuit to date. With an instant 100% distribution and a 13% share in chocolate biscuits in the first four weeks post-launch, this one item has achieved over $4.5million retail sales value in the enrobed category (worth $82million retail sales value and over 2% share of Sweet Biscuits; source: Aztec data). “On July 1 we are launching our biggest ever consumer promotion, which will last 12 weeks and is being supported through the line with $1million marketing support. The activity gives New Zealanders the chance to win some of their favourite things with New Zealand favourite biscuits.” There are over 100 prizes to be won every day, plus weekly ones

too, including TVs and Air New Zealand Holidays gift cards, limited edition Griffin’s collectable mugs and product vouchers. To enter consumers simply need to buy any pack of Griffin’s branded biscuits, muesli bars or crackers and visit winwithgriffins.co.nz for their chance to win. Clark adds: “In July we are launching a new range of chocolate biscuits designed to meet the needs of smaller households and create new consumption occasions for lighter users. We have developed Griffin’s Treat Packs, a range of our top-selling enrobed biscuits in handy treat-sized packs; 66% of NZ Households are 1-2 people (source: Nielsen Homescan) and these households significantly underindex in chocolate biscuit consumption, with the current pack size not meeting their needs. “These packs are ideal for smaller households, containing just four biscuits per pack, perfect with a mid-morning cuppa or as an afterdinner treat. Griffin’s Treat Packs are available in four varieties:Toffee Pops, Squiggles HP, Choco-ade and Mint Treats, at supermarkets nationwide from July 22 (RRP $1.89). “As a category biscuits represents 3.3% of ‘total pre-packaged grocery’. The total biscuit category, including crackers, is valued at $379million and growth is +1.2%. Griffin’s is the key biscuit supplier with 34.9 % value share. Biscuit consumers (and in particular New Zealanders) are early adopters and 5% of products sold in the biscuit aisle is a new item to the category,” he says.

cake s & bi s cstrap u it s CADBURY In the biscuits and crackers aisle Cadbury supplies Cadbury Chocolate Biscuits, BelVita Breakfast Biscuits, Oreo, and Ritz. “The launch of BelVita in September 2012 established a ‘Biscuits for Breakfast’ shopping occasion that brought breakfast snack purchasing into the biscuits category for the first time,” says Trevor Newman, marketing manager - Biscuits Candy and Foods. He explains: “BelVita Breakfast biscuits are a convenient ‘grab and go’ product – made even easier by selling in a box of six packets, to enjoy with a piece of fruit and tub of yogurt for four hours of sustained energy. “We followed the BelVita launch with the launch of Cadbury Chocolate biscuits in March 2013 – led by the iconic Freddo brand. Our range also included Chocolate Fingers – a Cadbury favourite from way back – but it has been Freddo that has created excitement for shoppers. “Our successful launch of BelVita Breakfast biscuits generated over $800,000 in retail sales in 2012 (Nielsen). BelVita Breakfast biscuits created a new segment in biscuits, and following the launch were 38% incremental to the biscuits category (Home Scan Report, BelVita NPD tracker 2nd December 2012),” he says. “We are adding to the BelVita Breakfast range by launching a delicious new cranberry flavour that should be hitting the shelves from mid-June.” Newman adds: “The new Cadbury Biscuit Freddo range has successfully taken the fun and adventure of Cadbury Freddo to a whole new category. “Cadbury is in a unique position to be able to view shopper trends in biscuits alongside our perspective of the ‘confectionery shopper’. “We see the merging of biscuits and other snacking categories as consumers move more towards snacking behaviours and away from the traditional three meals a day

behaviour. Our research on BelVita showed that 47% of Kiwis skipped breakfast at least once a week, opting instead for snacking solutions that fit better with their lifestyle, busy mornings, or pressures to get to work (Nielsen). Hence BelVita is the ideal way to provide a great tasting, low GI snacking solution that busy Kiwis can access in the car, on public transport or from the top drawer in the office. “Freddo has received a great response because biscuit shoppers (like confectionery shoppers) want to be excited and emotionally engaged in their purchase choices. Buying Freddo biscuits means that the whole family can share in some fun and excitement at snack time – that’s exactly what Freddo is all about!” Newman adds: “Cadbury is a market leader in confectionery with 43% share of total confectionery and participation across seasonal, gifting, blocks, bars and sugar confectionery with the Pascall and The Natural Confectionery Co. brands (Nielsen).

COOKIE TIME Melanie Mackenzie, brand manager told FMCG: “True to our vision – ‘a taste for every occasion, a smile on every face’, Cookie Time Limited (CTL) is home to some of New Zealand’s most loved food brands: Cookie Time cookies; Bumper Bars; and the world first meal bar One Square Meal – patented as the first in a whole new class of nutritionally balanced food and beverage.” CTL is continually undergoing product development as a result of consumer research and insights. Mackenzie says: “An ongoing trend in the category is the expansion of snack foods, with snacks used as treats or to moderate energy levels. Value for money, in terms of quality ingredients, processes and presentation that provide a compelling value proposition, remains a very strong consumer driver. It is this continual category research, and consumer insights

THE BREAKDOWN Current MAT to 19 May 2013 Total Cakes: $33.006m Value % Chg vs YA 0.7 Total Biscuits (incl Rice Wafer Cakes): $378.269m Value % Chg vs YA 0.7 T. Cracker Biscuits: $93.750m Value % Chg vs YA -1.1 T. Enrobed Biscuits: $82.233m Value % Chg vs YA -1.4 T. Plain Sweet Biscuits: $51.742m Value % Chg vs YA 3.7 T. Rice Crackers: $43.997m Value % Chg vs YA 14.6 T. Childrens’ Biscuits: $38.952m Value % Chg vs YA 5.6 T. Cookies: $26.617m Value % Chg vs YA -9.1 T. Cream & Jam Biscuits: $23.185m Value % Chg vs YA -5.9 T. Rice Wafers/Cakes: $11.692m Value % Chg vs YA -0.8 T. Assorted Biscuits: $6.084m Value % Chg vs YA -4.5 Total Baking Ingredients: $76.069m Value % Chg vs YA 1.6 Top 10 segments: T. Cooking Chocolate: $15.471m Value % Chg vs YA 4.3 T. Dried Cake & Biscuit Mixes: $10.832m Value % Chg vs YA 6.2 T. Mixes & Batters: $6.696m Value % Chg vs YA -1.4 T. Cocoa: $5.970m Value % Chg vs YA 4.1 T. Essences & Colourings: $5.542m Value % Chg vs YA 5.7 T. Yeast: $4.259m Value % Chg vs YA -1.4 T. Icings & Marzipan: $3.978m Value % Chg vs YA -2.0 T. Breadcrumbs: $3.709m Value % Chg vs YA 13.2 T. Cake Decorations: $3.352m Value % Chg vs YA -0.1 T. Coconut: $3.109m Value % Chg vs YA -17.3 *Nielsen New Zealand ScanTrack (Databank)

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into Cookie Time’s taste, flavour, size, real ingredient credentials and brand personality, that drove a rebrand of the Cookie Time brand in September 2012.” As part of the revamp, four new cookie SKUs were launched: A Nut & Chocolate Fix, new four packs of graduate (medium) size Chocolate Chunk and Triple Chocolate, and a new seven pack of rookie (mini) size Triple Chocolate cookies. The rebrand saw the iconic Cookie Muncher becoming front and centre of new packaging and promotional collateral, with colour, font, language and key messaging aligned to provide consistency across all SKUs and enable strong colour blocking on shelf. CTL also invested significantly in the Bumper Bar brand in 2012, with the company’s first ever TV advertising, and included the sampling of 10,000 Bumper Bars and facebook activation with video content and advertising. Over the coming 12 to 14 months CTL will launch a number of new products, range extensions and promotions across Cookie Time, Bumper Bar and One Square Meal brands.

biscuit brand in New Zealand (Aztec TKA dollar sales MAT to 26/5/13).” Peckish rice cracker 100g trays have now been in the market just over two years. “Since the launch, Peckish rice crackers has continued to grow year on year (110% dollar growth), which has contributed to positive rice cracker category growth of 21.3% (Aztec dollar growth latest MAT to 26/5/13),” she says. “Peckish crackers are a proven high volume mover and are now the No. 1 selling rice cracker in total key accounts – accounting for 41.5% dollar market share. Seven Peckish flavours out of the possible eight are ranked in the top 10 rice crackers SKU’s (Aztec $ sales latest MAT to 26/5/13). “Peckish launched an exciting new range of Snack Packs in March 2013. Peckish Snack Packs contain 8 x 20g convenient packs and are available in four popular flavours: Original, Cheddar Cheese, Tangy BBQ, and Sour Cream and Chive. Peckish Snack Packs are the perfect lunchbox solution, or a great snack on the go. Peckish crackers are gluten free, transfat free, baked not fried and made with rice bran oil. Make sure consumers can find the No. 1 brand of rice cracker in your store,” says Dench.

PECKISH Janine Dench, senior business manager told FMCG: “New Zealanders continue to love Peckish rice crackers. Peckish is now the No.3 selling

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DELMAINE FINE FOODS Delmaine supplies the Delmaine and Rosedale range in the bought in cake segment. Among new products launched there in the last 12 months are Coconut Stars under the Delmaine brand. Micheal Bennett, group product manager says: “These are selling well so far, but it’s only early days.” What are the consumer trends in

this category, in his experience? He says there is a greater interest in ‘free from’ baked goods. Free from gluten in particular, but also sugars, preservatives and so on. “We see decline in established categories like brandy snaps, which appeal to older consumers. Innovations are still key to generating interest and incremental sales,” says Bennett. He adds: “Rosedale Ginger Kisses are still the fastest selling SKU in the bought in cakes category (Unit sales, MAT and Quarter Aztec June 2013).”

LOAF Loaf Handcrafted Breads are now available in many New Zealand supermarkets. Kirsty Heron, marketing manager says: “We launched our new slice ‘Hello Rosie’ into the market last month. It’s a wholesome combination of nuts, sticky fruit and chocolate. It’s fast becoming one of our most popular slices. “In April we re-configured our slices into 300g packs to make them more affordable and achieve a wider distribution. Sales have increased by 46% as a result. “We’re reconfiguring our glutenfree loaves and will have some new flavours on offer next quarter. “Loaf slices are now available nationwide with New World, Fresh Choice and Raeward Fresh South Island stores now stocking the range,” she says.

BAKING INGREDIENTS Monique Farrell, marketing manager says: “New Zealand Sugar has been providing New Zealanders with sugar products for nearly 130 years under the well-known Chelsea brand.

“The brand retains the number one position on the market (42.5% by volume and 47.8% by value)*. As the brand leader in a commodity category we work especially hard to stop the erosion of category value. Our focus is on keeping the brand relevant to today’s consumers’ while growing category value for our customers.” This has lead Chelsea to introduce a number of successful innovations to the category recently. Farrell explains: “An extension to the range of Chelsea Flavoured Icings was launched to provide extra convenience to the home baker and has struck a chord with consumer as the range consistently performs well above the icing segment growth rate (6.4% v -0.6% volume growth)*. “Health is also a key consumer trend that Chelsea have embraced with their Chelsea LoGiCane Low GI Sugar (4.7% volume growth vs the overall category at -4.8%)* and the recent introduction of Chelsea Blackstrap Molasses, late in 2012, featuring a more palatable flavour profile in an easy pour bottle.” Chelsea has recognised that new packaging is also a way to stimulate consumer interest. Understanding the collectability and value of the iconic Chelsea Golden Syrup tin was the catalyst for introducing a special collector’s tin to coincide with Anzac in 2012 with a design that harked back to the original tin from 1915. “This innovation saw sales reach the highest weekly level since July 2007. Keep your eyes on the shelves later in the year as the next tin in the series is unveiled,” says Farrell. She adds: “Recent years have seen a resurgence in the baking category,

linked with an interest in back to basics in many categories, as a result of the global recession. Chelsea’s newest packaging innovation focuses on the baking segment with a change to upright packaging across their 1kg and 500g caster, icing and brown sugar SKUs. “The old pillow pack format has been in the market since the 1960s and is no longer meeting consumer and customer needs. The new upright format is a major change in the category and makes the product easier to find on shelf and easier to merchandise. Gone are the days of the leaking pinhole in the icing packs,” says Farrell. She adds, “We have been asked why our new packs aren’t resealable. When you’ve been around as long as we have you have tried a few things before and we’ve found resealability is hampered by the sugar, which likes to clog the seals, making for a diminished consumer experience.” The new packs also highlight the brand promise of baking expertise with vibrant new recipe photography driving the consumer to Chelsea’s website chelsea.co.nz and recipe club. Farrell says: “With over 40,000 members the site is a hive of baking knowledge and forms the hub of Chelsea’s engagement with Kiwi home bakers. Despite a slight dip in the category we don’t see the art of home baking dying out anytime soon!”

BAKERY FILLINGS Barker’s of Geraldine bakery fillings are an innovative range of products which can be used to make easy and impressive cakes, desserts, pastries and tarts. “Presented in a boxed, ready to use piping bag, they are convenient, no mess and resealable. Simply snip, pipe and clip, refrigerate and re-use,” explains Danielle Esplin from Barker’s. She says: “After launching in October 2011, sales have been strong over the holiday period. Barker’s have chosen to invest in this new and innovative range as the baking category continues to thrive. Each of our products enables home cooks to make their favourite desserts with ease, including fruit crumble, winter puddings, summer tarts and makes decorating Pavlova fuss free. You can choose to create our suggested recipes on back of pack, or use our fillings to get creative”, says Esplin. “Barker’s expertise in supplying bakeries and cafes with food service bakery fillings will help to back the success of this retail offering,” she adds. Esplin says: “There are four products in the range: Lemon & Passionfruit Filling – this tangy fruit filling is a firm favourite and is the top seller; Chocolate Mousse Mix – a premium chocolate mousse; Apple Berry Crumble Filling – classic, comforting Kiwi fare; and Key Lime Tart Filling.”

* Source:Aztec TKA MAT to 12/05/2013

Win a Barker’s Dessert Gift Box! We have three prizes to give away (each worth RRP $28.95), containing: Two Barker’s bakery fillings, two ramekins and a Barker’s tea towel. Now you’ll be able to create delicious desserts quickly and simply! To enter for this draw send your NZ postal details to editor@fmcg.co.nz. Entries close July 31, 2013.

JULY 2013 FMCG

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Health & Beauty What’s new in vitamins and nutrition this winter? FMCG talked to some of the key suppliers in this category. RED SEAL is celebrating 90 years since the business was first established in Auckland in 1923. Sue Millinchip, sales & marketing manager says: “Now that the rebrand is complete with new packaging, website and Facebook page, we are ready to make the next leap in terms of brand support. TV support commences on July 7 (the first time for this brand) and demonstrates how Red Seal uses the science of nature to help people live their best lives. We are extremely proud that our founding principles are as valid today as they were 90 years ago and look forward to spreading the good news even further.” Red Seal will be following up the TV support with NPD and even more support online and in print, so 2013 looks like being a golden year for the brand. In New Zealand supermarkets, Red Seal’s range includes Floradix and several new products launched in the last 12 months: Fish Oil 300s – promo pack; Magnesium 300s (Foodstuffs); Magnesium 200s (PEL); Vitamin C 500mg 200s; Vitamin C 1000mg 120s; and Superfoods Multi 50+. Millinchip comments: “Fish 300s is the #8 sku in the general fish segment*; Magnesium 300s

FMCG JULY 2013

THE BREAKDOWN [Top 4 segments only] Current MAT to 19 May 2013

is the #5 sku in the muscular pains & cramps Total Health Supplements: $86.664m segment*; Magnesium Value % Chg vs YA 6.6 200s is the #9 sku in the T. Vitamins: $34.617m muscular pains & cramps segment; and Red Seal Value % Chg vs YA 4.4 total magnesium shows T. Nutritional Supplements: $14.303m growth of +121.5% Value % Chg vs YA 5.4 compared to last year*. T. Nutritional Sports Bars: $9.185m “Fish as a segment Value % Chg vs YA 7.3 has been dominated by T. Fish Liver Oil: $8.334m the 1000mg and more Value % Chg vs YA 13.4 recently the 1500mg *Nielsen New Zealand ScanTrack (Databank) value packs. Aggressive promotional price points have been used by all brands and the 300s pack was meet the requirement for larger in a means of using additional value home stock levels. This has been a rather than simply price. It worked key driver of growth,” she says. very well both on and off shelf. Red Seal is planning to launch “Magnesium has been the more new products in the next few standout segment in terms of growth months, reveals Millinchip. with dollar sales for the six months What are the consumer trends in to 19/5/13 up by 133.1% (vs same this category, in her experience? period YA). It has featured in a “With the entry of higher priced number of health based programmes brands such as Bioglan and Swisse and media over the last year and we are seeing consumers willing has proven to be a very responsive to trial higher priced supplements segment, no doubt helped by the fact such as Krill within the grocery consumers can get a very immediate environment. This will be good for response when they take it. Many category growth and will make it people need to take regular and easier for Red Seal to bring these reasonably high doses of magnesium variants into their range. and Red Seal recognised this very “The rise of magnesium illustrates quickly and launched value packs to how receptive people are to a supplement which gives an immediate response and should build trust overall in supplements as an effective part of any health programme. We have seen an increase in sales of other minerals such as zinc and calcium, indicating a rising awareness of this important group of supplements.” Millinchip adds: “Red Seal has just completed the second Family Health Diary campaign, driving sales and

the iron category to new levels. The 2012 campaign was so successful Red Seal was awarded “exporter of the year” by brand owner Salus House. Given the fantastic trade support with lots of off location display and promotion, we expect to win this award again this year!” * Aztec TKA 6 months to 19/5/13

VITACO Healtheries have won the Readers Digest New Zealand’s Most Trusted Brand award three years running (Readers Digest “A study of Trust in New Zealand Society” annual survey 2011-2013). The total dietary supplements category is worth $64.9million and growing strongly at +6.4% in value year on year, says Rachel McKendry, senior brand manager, Healtheries Supplements. “The top three brands are Healtheries’ strong number 1 brand with 41% share of the market and growing at +3.9% (vs year ago); the number 2 brand is Red Seal with 18.3% share of the market and Blackmores is the third brand with 12.9% share,” says McKendry. Among the latest products is Healtheries Red Krill Oil (500mg 30 capsules), launched in February 2013. McKendry comments: “It has delivered strong incremental growth to the overall general fish segment. Red krill oil is the next big trend in fish oil and is showing significant growth within the segment. Like fish oil, krill oil provides the Omega 3 essential fatty acids EPA and DHA to support heart, brain and eye health. But unlike fish oil, krill oil

contains the fatty acids in a unique form for improved absorption and utilisation.” Healtheries Garlic, Vitamin C, Zinc and Echinacea with Olive leaf 200 tablets are beneficial for cold, flu and immunity, which is the second biggest segment within dietary supplements in grocery. She explains: “Healtheries are the brand leaders in this segment with 79.7% share and are growing at +5% year on year. Garlic, Vitamin C, Zinc and Echinacea with Olive leaf 200 tablets, which is a potent immunity combination was launched in February 2013 to drive volume within this segment.” She adds: “Muscular pain and cramps is the fastest growing segment showing growth of 110% year on year and this is been driven though magnesium. Magnesium is a highly versatile mineral that supports your health and wellbeing in a number of ways, helps you relax tense sore muscles, calm stress, tension and nerves and also supports a restful sleep. Healtheries Magnesium 150mg 60 and 120 capsules were launched in October 2012 and are showing phenomenal growth, as the number 3 and 4 player respectively in the segment. “Healtheries KidsCare Omega Smart bursts 30 chewable capsules were launched March 2013. This brain and learning support formula provides high-potency DHA for intellectual development and healthy brain function. Healtheries KidsCare is the brand leader within children’s supplements, with sales of over $1.1million on an MAT basis,” she says.

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cstara t epg o r y check

Dan Carter is Healtheries’ brand ambassador.

Dan Carter will be featuring in TVCs and take part in a series of PR and promotional initiatives.

McKendry says: “Natural health continues to become more mainstream as consumers are becoming more aware as information is so easily available online. The grocery supplement consumer is independent and buys supplements predominantly to maintain wellness. When looking in store for a supplement they will either look for ingredient or condition. This is different by person so ensuring both are conveyed though packaging and communication is important. Navigation of the category is key. “We are delighted to have Dan Carter on our team. “The rugby legend has become a brand ambassador for the Healtheries brand including our range of multivitamins and supplements, and we can’t think of anyone better than Dan Carter, our very own homegrown Kiwi legend, to represent Healtheries. Dan Carter was already using Healtheries products before he was approached so it’s a fantastic fit. Dan Carter will be featuring in TVCs and take part in a series of PR and promotional initiatives. “The multi’s segment is the biggest segment within dietary supplements in grocery and is growing strongly at +6.4% year on year. Healtheries lead this segment with 35% share, driven though our Men’s and Womens Multi range,” adds McKendry. Source: Aztec MAT 2/6/13

FMCG JULY 2013

PFIZER In NZ supermarkets Pfizer launched Centrum for Men and Centrum for Women in March 2013. Michelle Latta, national account manager, says progress has been excellent: “In the last four weeks we have achieved 7.9% dollars share of multivitamins in Total Key Accounts. We are averaging $105 dollars per store per week and 5.8 units per store per week (Aztec data National Grocery 4 weeks to 26/05/13). Based on just a short amount of time in market the performance to date is in rivalry with the #1 selling women’s and men’s product. Overall this is demonstrating that by launching Centrum products tailored towards individuals is having a great impact with consumer, and is delivering incremental category growth.” What are the consumer trends in this category, in her experience? Latta says: “In terms of the mix of what consumers are purchasing – there has not been dramatic change in the landscape over the last three years with the exception of some development in the men’s/women’s segment and the ‘Over 45’ segments. However, with New Zealand having an aging population, the expected trend will be in seeing an increased usage and growth within the over 45 segment over the next few years.”

SUPPLEMENT YOUR SALES w it h

RED SEAL Red Seal is making a giant push into the tea, supplement and toothpaste markets,

$1.4D5I Am

with a $1.45 million dollar media spend this year. The new multi-level campaign, which includes TV, print and online, focuses on our proud history of innovation

ME S PE N D

in science and naturopathic expertise, to help consumers live their best life.

JULY

AUG

SEPT

OCT

NOV

DEC

JAN

FEB

MAR

TV $1,000,000 MAGAZINE $ 200,000 WEB $ 250,000

Watch our new TV ad here*

then watch your sales spike.

*Using your Smart Phone, hold QR reader app over the QR code to access the TV ad.

cstara t epg o r y check

Thirst quenchers Bottled water and sports drinks are increasing in popularity. FMCG took a snapshot of this growing category. THE sports drink category was created in 1965 by scientists working for the Florida Gators football team. The Gators were suffering in Florida’s hot and humid conditions and needed more than water to replenish their body and receive energy. So these scientists developed the first sports drink based on water, carbohydrates and electrolytes. ‘Gator-ade’ was tested on the players. The Gators started playing better in second half and became known as the “second half team”. They went on to win ‘Orange Bowl’ in 1967. The legend was born! Monica Yianakis, marketing manager comments: “Gatorade is the #1 sports drink on the planet! For over 40 years, Gatorade has proven again and again to keep athletes hydrated and performing at their best. “Here in New Zealand Gatorade is seeing impressive growth with 111% Value Growth MAT (Aztec, Total Measured, MAT to 9th June, 2013) – having more than doubled its value sales year on year.

FMCG JULY 2013

“We have five flavours of Gatorade drinks available: Blue Bolt, Fierce Berry, Lemon Ice, Orange Ice and Lemon Lime. We also have a 560g tub of Gatorade Powder (Lemon Lime) that makes up to eight litres of thirst-quenching Gatorade and gives you the option to mix the formula to any strength you desire. “Gatorade is the only sports drink backed by over 40 years of scientific research and is scientifically formulated to help replace what’s lost when you sweat: Fluids and Electrolytes to promote complete rehydration and carbohydrates to refuel working muscles. “Gatorade Lemon Ice 600ml launched in May 2013 and has a thirst-quenching, great lemon taste. Gatorade Lemon Ice has no added colour and will be a strong addition to the “Silver” flavoured segment. Gatorade Lemon Ice has had an exceptional few weeks since launch, catapulting to 22% value share of the “Silver” flavour segment (Aztec, Total Measured, 4 weeks to 9th June 2013). This is the start of great

things to come for both Lemon Ice and Gatorade in New Zealand”, says Yianakis. Is Gatorade planning to launch any new products in the next few months? “Of course, watch this space!” she says.

FRUCOR Frucor have a number of water brands available in our supermarkets – h2go, Mizone Active Water and NZ Natural. H2go – was the first ‘on the go’ water in New Zealand. H2go offers pure water and flavoured water (h2go zero). H2go zero comes in both still and sparkling variants. The still range has three flavours: Lime, boysenberry, and Summerfruits. The sparkling range has two flavours: Lime and Cranberry. Natalie Johnson, brand manager, comments: “Mizone Active Water is the market leader of flavoured water and was the first ever flavoured water in New Zealand, launching in 2000. Mizone has five flavours: Lime,

h ydra t io n Mandarin, Crisp Apple, Passionfruit and the latest edition - Peach. “New Zealand Natural is pure spring water sourced from the Southern Alps. It comes in both still and sparkling variants.” She adds: “Mizone Active Water Peach launched in August 2012 and there had been no new news for Mizone Active Water in five years, so a new flavour was added to the range to give consumers a reason to look at Mizone again. Since launch the whole Mizone brand has turned around from being in double digit decline to growing at 6.79% in grocery and 31.51% in the oils channel (Aztec Data value growth vs. YA current 6 months to 09/06/13). “H2go Zero launched in September 2012 with the clear insight that consumers do not want sugar in their flavoured water. We launched h2go zero replacing the entire full sugared range of h2go flavoured. Since launch the h2go flavoured range has turned around from being in double digit decline to growing at 21.75% in grocery and 12.82% in the oils channel (Aztec Data value growth vs. YA current 6 months to 09/06/13). “H2go Pure re-launched in March 2013 to appeal more to the target bottled water consumers who are youthful, modern social consumers. Four limited edition designer bottles were launched (these labels were designed by local and international artists) giving consumers a choice in which bottle they wanted to be seen, with labels ranging from bright and bold designs to intricate character-filled bottles. Since launch h2go pure has been in growth +44.8% and has gained 3.2 share points (Aztec Data, total petrol channel March – May 2013 vs.YA),” she says. A new round of designs have just been launched mid-June with the aim to release new designs throughout the year. So what are the consumer trends

in this category, in her experience? “In the bottled water market there are two key trends we have seen recently: An international trend around personalisation and limited edition packaging – this helped guide our re-launch of h2go pure. And the key trend of health and wellness: People drink water as a healthy alternative and don’t want to have any sugar in their flavoured water,” says Johnson.

VITASPORT

Blue has proved the most popular flavour among consumers, and the sachet range has helped Vitasport to reach unit growth of 99.2% vs year ago (Aztec, MAT to 12/5/13).” Hansells Food Group is planning to launch a new Vitasport product this year in the Health & Wellness category – Vitasport Pro. This will be targeted towards athletes with greater hydration requirements and need to perform at their peak for longer. Vitasport Pro contains Palatinose for prolonged energy release, sucrose for that rapid burst of energy, and five key amino acids to enhance muscle building and repair – as well as essential vitamins and minerals. “Vitasport Pro will help to prevent fatigue, promote recovery, increase endurance and muscle building, and improve concentration and focus, so that performance and endurance are maximised during exercise,” says Pinchen.

Hansells Food Group has had the Vitasport brand in the powdered beverage category for several years. Sophie Pinchen, assistant brand manager explains: “The brand includes Vitasport Isotonic, a powdered sports drink mix designed to deliver nutrients faster by being perfectly balanced to match the body’s natural fluids; and Vitasport Water Booster, to hydrate and nourish with natural fruit flavour and seven essential vitamins. Both THE BREAKDOWN Vitasport Isotonic and Current MAT to 19 May 2013 Vitasport Water Booster are available in stick packs Total Water: $50.182m for convenience, which is Value % Chg vs YA 10.1 a big hit with consumers who can make up their T. Non-carbonated Mineral Water: $39.950m Vitasport when and how Value % Chg vs YA 9.6 they want to.” T. Carbonated Pure Mineral Water: $6.803m Vitasport Isotonic Value % Chg vs YA 15.7 recently extended their T. Carbonated Flavoured Mineral Water: $3.428m range into new 80g Value % Chg vs YA 5.3 sachets that makes up Total Sport Drinks: $33.706m one litre, in Lemon & Value % Chg vs YA 15.4 Lime, Original Orange [includes Coconut Water] and new Active Blue *Nielsen New Zealand ScanTrack (Databank) flavours. Pinchen says: “Active JULY 2013 FMCG

cstara t epg o r y check

Laundry aisle Suppliers share their latest product and packaging developments.

PERSIL is New Zealand’s leading laundry brand with a 30% value share*, says Lucy Bradshaw, category assistant - Unilever New Zealand. “Persil is growing +9.5% YTD** while the category declined -1.1% YTD***. In a declining market, to grow category value we need to trade consumers into offerings like Persil with a higher average price paid per wash (APP/Wash),” explains Bradshaw. “Liquids is one area of the market that is growing (+4.8% YTD****). Liquids sustain a higher APP/Wash compared to powders and trading more consumers into liquids grows category value. The re-launch of Persil Liquids will further drive growth in the segment. “New Persil liquid has new formulations, packaging and a fresh $1m rate card communication plan to encourage more consumers to trade up into the growing liquids market,” she says. “Consumers say Persil’s new formulation cleans clothes thoroughly, removes dirt well and has a great fragrance,” explains Bradshaw. The launch includes a new variant: Sensitive Front Loader liquid 1L. Unilever is New Zealand’s leading laundry product manufacturer with 55% value share*****. The Unilever portfolio also includes Surf, Drive and Comfort fabric conditioner. *Aztec TKA, Total Fabric Wash, Value Share YTD 12/05/13 **Aztec TKA, Total Persil, Dollars Growth YTD 12/05/13 ***Aztec TKA, Total Fabric Wash, Dollars Growth YTD 12/05/13

FMCG JULY 2013

**** Aztec TKA, Total Liquids Dollars Growth YTD 12/05/13 *****Aztec TKA,Total Fabric Wash,Value Share YTD 12/05/13

ECOSTORE Ecostore leads the environmental laundry segment with 24% market share, says Allie Downes, product manager – Australasia. She says that environmental products are driving category growth (with 16.9% growth vs a year ago TKA, 26/05/13). Over the past 12 months ecostore

has launched a new Laundry Liquid (fragrance free 500ml and 1L) and Laundry Powder (fragrance free 2kg). Downes explains: “Fragrance free and bulk formats are showing strong growth in an otherwise declining category. Fragrance free is an ultra sensitive option ideal for babies, people with allergies or skin conditions, or who just prefer to avoid fragrance. Over the next few months we will be introducing some beautiful new additions to the range.

la ustrap n d ry

THE BREAKDOWN [Top 5 segments only] Current MAT to 19 May 2013

“Ecostore Laundry Powder, Laundry Liquid and Laundry Soaker are approved by Environmental Choice; this a guarantee that they are committed to environmental leadership and their products are less harmful to the environment,” she says. In March 2013 ecostore Laundry Detergents received the ‘Canstar Blue Award for Customer Satisfaction’ for the second year in a row. Ecostore Laundry Detergents achieved Canstar Blue’s top five star rating for: • Quality of Clean • Number of Washes • Environmentally friendliness • Feel of clothes • Overall Satisfaction.

EARTHWISE The Earthwise laundry range includes powders and liquids, fabric stain remover, oxygenated whitener, fabric softener and wool & delicates wash. “All our laundry products are phosphate, nitrate, chlorine and ammonia free and are manufactured in New Zealand,” says Rachel Beattie, marketing manager. “We have not launched any new products in the laundry category during the past 12 months. However, consumers will have noticed that our packaging has undergone an evolutionary refresh. The new branding now makes it easier to identify Earthwise products on shelf from both competitors and between variants. We have also conducted significant testing on our product range and now all products are suitable for use in both front and top loader washing machines, this is also now clearly identified on the new packaging. Earthwise continues to support Plunket (3% of all sales of our

laundry products goes directly to help Plunket in our local communities),” says Beattie. She adds: “Earthwise Group contributed 108.4% of environmental cleaners growth in the MAT To 09/06/13, increasing sales by $3,111,732. Environmental Cleaners increased sales by $2,870,120 (+15.7%) in the same period. “The Environmental laundry segment is valued at $21,9826 and is growing at 6.2% YA (MAT 09/06/2013). Earthwise is now the number one brand in Environmental Laundry valued at $88,568 and is driving this growth +61.9% over the same period. “Retailers are now seeing that Earthwise is leading the way with innovation and above category growth and consequently we are now a serious player and a core part of the ranging mix,” she says. Beattie explains: “The world is becoming increasingly aware of the environment and the impact that we are having on our planet. People start by creating chemical-free environments for their children in their own homes; but many of our consumers are working towards creating a cleaner world in whatever way they can. They are seeking out products that are friendly to the environment.

Total Laundry Products: $122.368m Value % Chg vs YA -0.1 T. Heavy Duty Laundry Powder: $76.178m Value % Chg vs YA -1.9 T. Pre Wash Stain Removers: $17.846m Value % Chg vs YA 0.1 T. Heavy Duty Laundry Liquids: $12.903m Value % Chg vs YA 7.6 T. Fabric Softeners/Antistatic Pads: $10.328m Value % Chg vs YA 3.5 T. Fine Fabric Washers: $3.309m Value % Chg vs YA 6.0 *Nielsen New Zealand ScanTrack (Databank)

There is a general perception that to be ‘green’ is expensive, or that ‘green’ products don’t perform. Earthwise have developed a model that makes being ‘green’ more affordable and provides products that actually work. Making a positive contribution to the environment no longer needs to be an expensive exercise. “Customers who buy environmentally friendly products want to know they are purchasing authentic products from a credible brand. Tom Robinson, the founder of Earthwise first started making plant based products in 1964, so we have a wealth of experience and knowledge in this industry,” she says. Source:Aztec Environmental Cleaners to June 2013

JULY 2013 FMCG

w hat ’s hot RED SEAL VITAMIN C 500MG 200S WITH 50 EXTRA FREE The I LOVE PIES range is expanding and is now available in individual pie serves across three popular flavours. Made with our special sour cream pastry and all real ingredients and packaged in an impactful box design. Priced at an accessible price point, this new format will target the growing two person household and SINKS and DINKS.

Red Seal oﬀers consumers seeking a value pack of Vitamin C even more value for money with 50 extra free in every pack. The 500mg variant accounts for 59% of volume (250 tabs, MAT to 19/5/13) and 41% of dollar sales in this critical segment. Best value in the category!

The Lovely Little Food Co ( I Love Ltd ) 0800 PIES4U (743 748) www.ilovepies.com

NO MORE SMELLY FINGERS! Attract customers to the freezer with this ‘Must-Have’ time-saver. NEW Cofresh frozen Garlic - 100% crushed garlic, with NO additives. Each free-flow cube equivalent to 4 average cloves. Use part or whole cube without defrosting. Using a cube speeds up a tasty stir-fry or sauce.

Angus Hume marketing@redseal.co.nz or 0800 733 732

INTRODUCING NEW PERSIL LIQUIDS New Persil Liquids, with built-in pre-treaters to give you amazing stain removal first time. Persil’s new formulations, packaging and fresh new $1M rate card communication plan will encourage more consumers to trade up into the growing Liquids market*. Grow your category with market leading Persil Liquids**. Available now in 5 variants in a new 1L pack size. Contact your Unilever rep for more information.

Just the same with the 100% crushed Ginger - No more mouldy, shrivelled ginger root wasting away in the vegetable rack! 20 cubes in each COFRESH pack of 400g. GREAT VALUE at $2.99 - $3.29 a pack Available from Foodstuﬀs Auckland DC (codes: 532-625 and 532-605) Call Foodtrenz Sales on 09 413 5027 or paula@foodtrenz.co.nz

FMCG JULY 2013

*Aztec TKA, Fabric Wash, Total Liquids MAT 12/05/13 **Aztec TKA, Fabric Wash, Value Share Total Liquids MAT 12/05/13

what’s hot PORTABELLO PLUS

POWER FROM NATURE WITH PHOENIX ORGANICS Here at Phoenix, we don’t do it unless it’s organic, delicious and liberated from artificial nasties and that’s why our new Organic Energy drink is exactly that. Phoenix Good Energy Pomegranate uses real fruit juice, blended with a boost of natural caﬀeine from Green Coﬀee Beans & naturally sourced guarana extract.

Portabello Plus from Meadows is a great way to add flair and flavour to any meal; breakfast, lunch or dinner – just brush and bake for 8 to 10 minutes. A gourmet herb & garlic oil sachet is included in every 200gram pack. Look for the bright orange tray in store today. For further information: www.meadowmushrooms.co.nz

A FRESH NEW LOOK FOR LO PETER YEALANDS PE From the producers of the world’s best Sauvignon Blanc* comes a fresh new look for Peter Yealands wines, on shelf from August. This impactful new look reflects the premium quality of these awardwinning, sustainably produced wines.

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There are no synthetic additives, which means no Taurine, Glucuronolactone, or anything else you can’t pronounce. Just the good stuﬀ to give your customers energy in the way nature intended. Get in touch with your local Better Drinks Co representative to find out more. www.facebook.com/phoenixdrinks

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JULY 2013 FMCG

gro cer y bus ine ss CHELSEA AT FOREFRONT OF INNOVATION Sustainability and investment are always two key areas of focus at Chelsea Sugar, our country’s only sugar refiner. Founded nearly 130 years ago in 1884, the iconic company takes its role very seriously, taking the time to understand their customers. Responding to consumer needs the company is changing the face of the baking sugars category with the introduction of its new stand-up packaging range. The new packaging design will make it easier for consumers to find the sugar type on shelf and improves storage at home, taking up less space in the pantry than the pillow pack. Resealability was investigated, but consumer research shows Kiwis generally decant sugars and the sugar is prone to clog the seals. Bernard Duignan, general manager explains: “The change of packaging format represents a significant investment by the company and had to take into account multiple factors. The project was marketing led to ensure that we always had the consumer top of mind during the decision making process but the machinery solution had to be robust, flexible and sustainable to meet our future requirements.” Chelsea partnered with German company Rovema to design one machine that could do the work of three, to not only pack in varying packagingg formats but also pack varying sugar types. In a world ﬁrst the machine packs caster, white, soft brown and icing sugars, which provides complexity because of the different bulk densities and ﬂow characteristics of the sugars.

“Customers’ needs were also top of mind,” says Monique Farrell, marketing manager. “We needed to make sure that we optimised shelf utilisation and improved product handling and storage. This is why we moved from a paper baler to a case for outer packaging and it means we can eventually move to a shelfready case format, which will speed up shelf ﬁlling and improve display capability.” As the major sugar supplier in the country New Zealand Sugar has also taken into account contingency supply with the project. “Our sister company Sugar Australia was also looking at new packaging investment and we worked in tandem to ensure our machines were capable of producing the formats required in each country. In that way we can ensure continuity of supply for both sides of the Tasman, should it be needed,” says Duignan. The new range is being released progressively from late June and should be in all stores by August. ●

HEINZ PICKS NZ FOR FORMULA PRODUCTION Food giant Heinz has revealed plans to move some of its production from an infant formula plant in Britain to New Zealand, where Fonterra will manufacture its products under contract. The changes are designed to save shipping costs for products travelling from Britain to China, which is the world’s biggest market for infant formula. Heinz infant formula brands include Nurture Plus. Fonterra offers contract infant formula manufacturing services at its Hamilton Canpac plant. The Ministry for Primary Industries has announced a brand registration programme, requiring all New Zealand infant formula makers to supply information about the products they produce. New Zealand’s infant formula industry has grown rapidly in the wake of China’s 2008 melamine scandal, which left consumers highly distrustful of Chinese baby milk brands. ●

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g rocer y bu sin ess FONTERRA WINTER SPRUCE-UP IN FULL SWING More than 900 Fonterra manufacturing site staff are taking part in New Zealand’s biggest annual winter maintenance spruce-up ensuring everything is in good shape for the season ahead. Many of Fonterra’s 27 sites around the country have closed shop and are getting scrubbed up over ten weeks, as milk flows have dropped off, allowing maintenance to take place. Brent Taylor, director of NZ Operations, says the cooperative undertakes maintenance every year to keep the sites match-fit to seamlessly process more than 17 billion litres of milk annually. Fonterra maintenance fitter Greg Benfell carries out maintenance at the Te Rapa site. “Typically we produce around 2.4 million metric tonnes of product a season, running our driers, at times, at full This year more than $70 million is being spent on maintenance capacity. To sustain and grow these production levels around New Zealand. we have to maintain our equipment to the highest standards. To get the job done, more than 170 companies, big and small “Winter maintenance is all about getting off to a good start from around the country, will work together employing more for the next season. It ensures that we continue to meet the than 620 contract staff from around New Zealand. The work demand from our customers and deliver our products on time.” undertaken during winter maintenance will range from major Trevor Bell, maintenance co-ordinator at Te Rapa, says the capital works to minor valve and floor repairs. work Fonterra does during this period sets the tone for the Taylor says that all staff or contractors that work on Fonterra’s following season. sites receive a safety induction to ensure they feel safe carrying “Winter maintenance is our opportunity to set up the plant out their work. for the season ahead so it can run at maximum efficiency “Safety is our highest priority at Fonterra and we take every step without unforeseen downtime which can cost us in lost to ensure everyone who works on site returns safely home at production. Thorough maintenance also allows us to extend the end of each day,” he says. ● the life of our equipment.”

DESIGN PRINT PARTNERS IS ‘25 YEARS YOUNG’ the marketing side; our cloud-based online The marketing logistics experts, Design Print portal allows our multinational or independent Partners retail agency, are celebrating their clients to not only manage their inventory 25th anniversary this year. online from anywhere, but run budgets and Chris Danielson, sales & marketing director reports for region and rep. Our clients can says: “When we set up our logistics division manage their material and have re-order it was born from the idea to help manage triggers for items used regularly, no more our clients’ point of sale material. We running out of critical material just when it’s were already designing and producing the needed. material and we were looking for a way “Our online system is easy to use, branded to make our clients smarter with their with our client’s logo and has pictures (even spend. After a visit to the ‘Point of Sale instructions) for the material and of course room’, which was a cage at the back of the live quantity. factory with everything stacked up and Chris Danielson, “We can help with kit building, prize no way to tell what was underneath, we sales & marketing director. redemptions and storage, repair, as well as set knew we could set up a better system with up of event material. Through our extensive reps ordering just what they needed and knowledge we can help source almost anything our clients reducing in some cases wastage and cost by 80%. That was 15 require. If your business needs a logistics health check, give us a years ago. call for a free audit,” says Danielson. ● “Design Print Partners’ logistics operation is still driven from JULY 2013 FMCG

gro cer y bus ine ss TVNZ NZ MARKETING AWARDS 2013 FINALISTS ANNOUNCED The TVNZ NZ Marketing Awards, now in their 22nd year, are a celebration of everything that makes marketing great in New Zealand and beyond. The search for marketing excellence started back in April and the 2013 TVNZ NZ Marketing Awards finalists have now been revealed. “Following on from the record number of entries last year, we have received even more in the industry and individual awards categories this year,” said Sue McCarty, convener of judging. “We are delighted to see a large number of new entrants in the finalist list who, together with regular candidates, are all vying for the top honours”. Many entries are finalists in multiple categories; with Frucor Beverages, Bank of New Zealand, Mercury Energy and Z Energy taking the front-running. This year’s judging panel Foodstuffs’ New World campaign is among the finalists. looked for brand and

Grifﬁn’s Foods’ Choco-ade campaign is among the ﬁnalists.

marketing initiatives and projects that are clear examples of marketing leadership and success. There are 13 industry categories, six ‘Judges’ Choice’ and three ‘Individual Awards’ categories. Being selected as a finalist is a real achievement in itself and this year’s finalists include Foodstuffs, Fonterra and Griffin’s Foods. For the full list of finalists visit everythingmarketing.co.nz/ finalists. Tickets are now on sale for the awards evening taking place on Thursday 29 August at The Langham in Auckland. Bookings can be made online at everythingmarketing.co.nz/. ●

ALDI GOES ONLINE IN WORLD FIRST In Australia, supermarket chain Aldi is taking its competition with Coles and Woolworths to new heights, launching an online liquor store to serve the eastern states. In an interview with The Weekend Australian, Aldi Australia managing director Tom Daunt said the move into online retailing on August 1 would be a world first for the German-owned multinational and could be a precursor to a full-range internet sales offer. “Every major liquor retailer in the Australian market has an online presence now, so we’re just joining in,” he said. “This is an interesting litmus test for us because it’s the ﬁrst time Aldi has participated in online retailing in any signiﬁcant way internationally.” The packaged liquor market in Australia is worth about A$45 billion in sales, while the online wine market is worth about A$220 million a year, which is 5% of the total market. The company is restricted from selling alcohol at its Queensland stores, as that state restricts off-premises liquor licences to pub owners – the main reason for Coles and Woolworths owning portfolios of Queensland hotels, and a law that Aldi is lobbying the state government to repeal. “Online liquor will enable us to access that market, and there are many customers on the eastern seaboard who don’t have an

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Aldi close by who would like to access our offer,” he said. The present in-store range consists of fewer than 100 wines, beers and spirits, but the online site will offer at least double that amount – still well below the 7000-plus products on offer at Woolworths’ market-leading Dan Murphy’s website. Like Aldi’s grocery range, its alcohol offering will be made up of about 95% in-house brands, although the company prefers the term “exclusive brands”, saying it better reflects their quality position. Aldi also plans to spend more than $500 million to build two distribution centres in SA and Western Australia, where it plans to open up to 45 and 70 stores, respectively. Aldi has built a portfolio of 311 stores since opening its ﬁrst site in Sydney’s west in January 2001. Coles and Woolworths consistently have pointed to Aldi and Costco as sources of competition when concerns are raised over their dominance of the supermarket sector, in which they have respective market shares of about 30% and 35%. “The problem is not that Coles and Woolworths are so big, it’s that they haven’t been competing with enough tension in the past, and that’s changing with our growth, Costco’s arrival and Coles’ revival,” Daunt said. ● Source: The Australian

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Dad’s Pies celebrates 32 years From a small beach front shop in 1981 to a fully automated production plant in Silverdale - Dad’s Pies celebrates its 32nd birthday this year. Dad’s Pies is proudly New Zealand owned and run since 1981, making Dad’s one of the oldest running pie companies in New Zealand. Dad’s Pies is a specialist pie and pastry manufacturer with all the expertise surrounding this. Dad’s Pies has grown from a small beach front shop in 1981 to a fully automated production plant in Silverdale. Eddie Grooten (pictured) first purchased a struggling business on the shore at Red Beach and through hard work and vision developed Dad’s Pies into a leading company in New Zealand. Eddie Grooten still lives on the same spot where he started the business, and raised his family there with his wife Erika. Dad’s Pies has evolved from a general bakery shop into a specialised supplier of premium quality pies and pastry products over the whole of New Zealand and internationally. Phenomenal growth has seen Dad’s Pies expanding premises regularly during its history, from the original shop in 1981, to premises in Foundry Road Silverdale in 1987, then taking over neighbouring business premises to continue growth. In 2001 Eddie’s vision to expand internationally led to the building of a dedicated custom plant at Forge Road, Silverdale, with further expansions in 2005 and 2008. Dad’s Pies believe it is their dedication that make their pies taste so good: • Taste: Taste is everything. Dad’s Pies are committed to every mouthful being mouth watering and delicious. • Quality: Only premium ingredients are used. Quality makes for great pies. • Tradition: 32 years worth of love, experience, refinement and total dedication to pie perfection. • Care at every level: People come first. Food made with love always tastes better. • Relationships: The end consumer or the large corporate buyer, all relationships are cherished. As well as this, Dad’s Pies are: • Trans-fatty acid free • Have no artificial colours, flavours or preservatives • Have no genetically modified ingredients • Have lower fat than most pies in the New Zealand marketplace with pies ranging from just 5g of fat per 100g. This is one of the reasons that you will find Dad’s Pies at BP Wild Bean cafes, Brumby’s, BP2go’s, and selected New Worlds, Four Squares and Pakn’Saves around New Zealand, as well as on board Emirates Airlines and Air New Zealand. For more information call Dad’s Pies on 09 421 9027 or email the sales manager: wendee@dadspies.co.nz ■ JULY 2013 FMCG

SPOS Group’s ‘Made to Match’ branding poles.

SPOS Group’s cooking stations for Foodstuffs.

Theatre for shoppers Industry experts explain the latest trends in point of sale (POS) display solutions. WITH the proliferation of multichannel retailing, creating a satisfying consumer experience in store is more important than ever. Natasha Ching, marketing/ product manager SPOS NZ says: “Recent projects like our Lion ‘Made to Match’ branding poles and Foodstuffs’ cooking stations provide greater engagement for shoppers while also giving brands and retailers avenues to drive product trials, crossselling and up-selling.” SPOS Group offers out-ofthe-box point of purchase (POP) solutions as well as bespoke display design, with local and offshore production capabilities. SPOS has 42

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been providing retailers and brands with core products and innovations in in-store display for over 30 years. “Our retail marketing and POP solutions are used to maximise sales and enhance product display in major supermarkets and retail chains throughout Australasia,” she says. What’s her prediction for 2014? “The in store format will get bigger and better. Our team in iCandy Creative has already had success with their LG brand hub design, executed in Harvey Norman stores in the Australian marketplace. “Often the success of shopper marketing initiatives can be measured by their execution. Our

industry knowledge and experience ensures you get display solutions that excite the shopper and retailer alike, while not bamboozling your merchandisers. “SPOS NZ has recently undergone some significant changes to ensure we continue to provide strong service and innovation in the retail marketing industry,” says Ching.

ACHIEVING RESULTS Steve Meadows, DisplayMakers’ sales and marketing manager, says: “DisplayMakers believe in the importance of bringing the science of shopper behaviour into their

featu re

Shopper theatre creates the perfect point of interruption, and is an effective means for maximising consumer attention and conversion. solutions. Key to this is creating points of interruption to attract shoppers, providing the tools to manage the category, to inform and educate the shopper, to segment and ultimately to strengthen impulse purchases. “The end goal is to attract the shopper, convert them to a browsing state and then achieve a purchase result,” he says. Meadows points out that the display hardware is almost secondary but pivotal to this objective. “Clients are also looking for unique shape and style, not just to suit their product’s dimensions, but to provide increased visibility and accessibility. Designs are also key to efficient shelf volumes and shopping clarity and cleanliness. “It’s all about creating a unique sales environment that gels with the

shopper,” he says. Meadows finds that there is more demand for more efficient use of space to put products in front of people, brand-dedicated stands that are colourful, eye-catching and strategically located, ensuring products are easy to find and encouraging impulse purchasing. Meadows explains:“DisplayMakers’ service is about creating your sales environment. We see ourselves as assisting in sales growth and brand awareness. We are all about combining the best in the world ‘ready made’ items with customised design and manufacture for the ‘wow’ factor.” DisplayMakers provide conceptualisation in 3D modelling and visuals of the project working in an in-store environment. “From that point we use the best

In a World Of Consumer confusion... O UR Y N OW S SALE ENT M RON I V N E Attraction N Navigation Presen ntatio on

I Interaction Theatre

LISTEN

DESIGN

MANUFACTURE

DELIVER

DisplayMakers’ pallet surround.

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DisplayMakers’ swing-gate concept.

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products sourced globally, combined with in-house manufacture using plastics, steel, timber and print to create an optimum solution,” says Meadows. He predicts that creating shopper theatre will become hugely important in the near future. Brands will leverage the available tools to increase awareness and attraction, navigation, presentation, interaction, and most importantly the shopper experience. Shopper theatre creates the perfect point of interruption, and is an effective means for maximising consumer attention and conversion. He also thinks a good old ‘eggs and bacon’ analogy will become far more apparent, with non-competing but still complementary brands uniting their efforts to create mini ‘attraction’ hotspots. Brands working together to multiply their combined attraction through proximity and effective display rather than operating in isolation – drawing in the shopper and resulting in increased sales for both.

featu re In summary, he says: “It’s the shopper’s perspective that is paramount, but so often overlooked”.

MORE CREATIVITY Admark is a multi-channel print solution provider. “We offer a range of services to clients within the FMCG sector covering almost every facet of their business,” says Laurie Pilling, managing director, Admark Visual Imaging. The company specialises in: • Self-adhesive labels / Inmould labels • Product and industrial labels / Point of purchase displays • Floor graphics including 3D effect / Store and backlit signage • Shelf wobblers / Digital label and large format printing • Vehicle graphics including delivery trucks. There have been many changes

to POS over the years with digital technology. Pilling explains:“You can do more, and be more creative. People buy with their eyes, so graphics need to capture your attention immediately. We have seen customisation and personalisation on products and growth due to the digital Admark “wrapped” this Fonterra milk tanker with reﬂective graphics. technology. Our customers are able to do shorter market in customisable wallpaper. runs of jobs as digital printers do not We can print anything you desire require plates or film. onto wallpaper to fully customise “We are seeing graphics being your space. It can be removed for a used in new ways to help promote fresh new look. brands and products. There are so “Over the coming year, POS will many options in terms of materials, continue to be a vital part of the that the list of possibilities truly is promotional marketing mix. With endless.There has been an increase in technology moving as quickly as it floor, pavement and carpet graphics is, I see more creativity in the way in particular. graphics are displayed and used,” says “We are also seeing a growing Pilling.

SPOSgroup creating in-store display excellence with brands, retailers and agencies for over 25 years WINNING RETAIL DISPLAY SOLUTIONS DEVELOPED WITH SHOPPING EXCELLENCE IN MIND

Want to enhance shopper experience and stimulate sales? Call us today! sales@nzspos.co.nz

09 828 4877

spos.co.nz

JULY 2013 FMCG

Front of pack labelling Few stars for Australia’s new food rating system, finds Katherine Rich. THE recent announcement that the Australian Government is to adopt what it calls a “health star rating” labelling system on packaged foods has caused something of a stir across the Tasman. A Front of Pack Labelling (FoPL) system, designed to give consumers at-a-glance information about the food they are buying, has been an issue that trans-Tasman governments, by way of the joint Australian and New Zealand Ministers’ Food Regulation Forum, have been wrestling with for several years.

In late 2011, the forum agreed to the development of a system for Australia, with New Zealand deciding it would look at the issue separately, and negotiations started with the industry and consumer and public health groups. Finally, on June 14 this year, following the forum’s latest meeting, the Australian Government said it will adopt the star rating system. New Zealand was not convinced and has opted to watch and wait. The device will consist of a scale of ½ a star to 5 stars, with ½ star

A RUSHED ANNOUNCEMENT?

HEALTH STAR RATING Sat Fat

Sodium

Sugars

4.6g 798mg 1.1g

Energy

1087kJ

Per 100g

HEALTH STAR RATING Sat Fat

Sodium

Sugars

Fibre

0.4g 135mg 25.1g 15.7g Low Per 100g

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increments, and a “slider” above the relevant star or ½ star with the corresponding number to highlight the rating of the food (apparently in case consumers are not capable of counting stars!). The more stars, the healthier the food. This is to be underpinned by a Nutrient Profiling Scoring System for saturated fat, sugars, and sodium, along with one piece of optional positive nutrient information relevant to the particular food (for example, calcium). There will also be an ‘energy’ icon, with the unit of measure in kilojoules.

High

Energy

1400kJ

The Australians have decided that the manufacturing industry’s participation will be voluntary, but only as long as there is a “consistent and widespread uptake” of the system. It will be evaluated after two years and if it’s found that voluntary implementation is not working then a mandatory approach will follow. There’s no doubt that everyone in the food industry buys into the idea that there should be more information on packs so shoppers can identify healthier choices and buy accordingly. But there is concern across the Tasman that the announcement was rushed through in the desire to get a political outcome before the Australian election in September. The question being asked is: Has good process been trampled over in the rush to put something, anything, in place? Because there are flaws in the star rating system, with some of the anomalies undermining the credibility of the whole system. So what are the flaws? First, the industry believes the

fgc

star rating system will result in consumer confusion because the use of calculating the ratings based on the “per 100g”/“per serving” will lead to some crazy anomalies. Take a jar of Marmite or Vegemite as an example. Under the star system it will be required to have a “per 100g” rating on it and because of that will attract a lesser number of stars because of the amount of salt in that 100g, even though no one consumes anything like 100g of the breakfast spreads in one go. Fewer stars will be misleading to consumers and unfair to the product. Secondly, there are problems with how the star system rates different products. For example, peas would get more stars than carrots, apples, and broccoli because peas have more fibre and protein than the others. Even foods that conventional wisdom suggests are healthier food choices, such as apples, won’t get five stars, while there are concerns that dairy products will be punished by such a star rating when dairy plays a vital part in a healthy diet. Thirdly, the Australian Government is talking about using a big star logo but there remain the basic practicalities of getting a big logo on the side of a small pack – in

many cases they simply will not fit. How this problem gets solved we will have to wait and see. Finally, and talking of costs, the Australia food industry has calculated it will cost something like $200 million to implement the star rating system, in addition to complying with the new regulatory burden. At some point this cost will filter through to higher prices for consumers. Obviously the cost on this side of the Tasman would not reach those heights, but you can be sure it would be significant nonetheless. And that’s before anyone has even considered who pays to educate consumers on how to use the system effectively for healthy diet selection.

TECHNICAL PROBLEMS It’s clear that no one magical system exists, but what the Australians are doing has significant technical problems, and unless they are

ironed out the implementation is likely to be anything but smooth. Obviously, the food industry in New Zealand will be watching developments very closely, while continuing to engage on the issue with our Government, which has so far taken a far more pragmatic approach. And as a final comment, we should not lose sight of the fact that there are limitations as to how much of what is printed on a label can sway someone’s purchasing and consumption decision. Will making this massive and costly change make a difference? The jury is out, but so far this transTasman project has not uncovered any evidence to indicate that it will. Nevertheless, the industry is committed to improving available information so customers can make healthier choices – as long as that information is practical and clearly understood.

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

www.fgc.org.nz

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Financial advice What exactly is a financial adviser? Peter Christensen, chairman of the Camelot Group, explains the basics. FINANCIAL advisers are people who give advice about investing and other financial services and products. They include financial planners, brokers and people working for insurance companies, banks and building societies that provide advice about money, financial products and investing. These people and entities must be registered on the Financial Service Providers Register (visit www.business.govt.nz/fsp for more information). What products do they advise on? They will advise on ‘Category 1’ or ‘Category 2’. A category 1 product will have an investment focus, such as securities (shares), land investment products, and investment linked-insurance products (issued after January 1, 2009). Category 2 products include bank term deposits, bonus bonds, insurance contracts (excluding investment linked-insurance products issued after January 1, 2009), consumer credit contracts, units in cash or term investment portfolio entities. There are different types of advisers: 48

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Qualifying Financial Entity (QFE) advisers are employees, or nominated representatives of a QFE, who provide financial advice. An example would be a bank teller providing advice on a term deposit.These advisers do not have to be individually registered and authorised, however they can only provide advice on a product provided or promoted by the QFE, or partnership entity. They cannot provide an investment planning service or give advice on category 1 products that are not provided or promoted by the QFE, or QFE group, unless they are individually registered and authorised. What is a Qualifying Financial Entity?

A QFE is either a single legal entity employing a number of financial advisers, or two or more entities joined to become a single QFE. A QFE is responsible for the compliance of its advisers and nominated representatives. An example of a QFE would be a trading bank. A Registered Financial Adviser (RFA) is an individual adviser who is not part of a QFE, and provides advice on Category 2 products. Generally speaking, this will be your insurance adviser, who is not part of a QFE, will provide advice on medical, term life, trauma, income protection and other types of insurance products. They can also provide advice on investment-linked insurance policies issued before January 1, 2009. An Authorised Financial Adviser (AFA) can provide personalised advice on category 1 products (i.e. investment), as well as provide a discretionary investment management service for these products. Generally these will be individual advisers who provide investment advice and portfolio management services. Some AFA’s will also be qualified to give advice on medical, term life, trauma, income protection and other types of insurance products as well. Some QFE advisers may also be AFA’s, which qualifies them to give advice on products other than their own companies.

Peter Christensen is chairman of the Camelot Group, a nationwide financial advisory company. He is an Authorised Financial Adviser as well as a Certified Financial Planner and has worked in the financial advice industry for over 20 years. Visit camelotgroup.co.nz for more information.

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All lighters are not created equal From Disposable Pocket Lighters to Lighter Cases to Mega Lighters, BIC supplies it all… it’s your one-stop solution for all your lighting needs. This year BIC celebrates 40 years of producing lighters, with consumers purchasing over 6 million lighters a day around the world. The ‘I LIKE’ I LIGHT’ campaign celebrating BIC’s 40th anniversary will be supported by point of sale material such as posters, door stickers, wobblers and new counter displays and consumer advertising. The creative concept and design was recreated by Forge media in New Zealand and will run throughout Oceania; it involves the use of male and female hands holding one of many of the BIC pocket lighter range including the Maxi, the Mini and Electronic. A world-class manufacturer, BIC has been producing disposable pocket lighters since

1973. Its ISO 9002 certiﬁed production plants are professional environments and that’s of paramount importance when implementing BIC’s rigorous quality control processes. In fact, every lighter that leaves a BIC factory has to pass more than 50 separate automatic quality checks, including 25 sealing and extinguishment checks. In March 1997, the New Zealand Government adopted the American Consumer Product Safety Standard for Cigarette Lighters under the Trade Practices (Consumer Product Safety Standard) (Disposable Cigarette Lighters) Regulations 1997. “All disposable pocket lighters must conform to these regulations and at BIC we’re proud to acknowledge that every BIC lighter meets or exceeds ISO 9994, which we have been doing since the ﬁrst lighter was launched in 1973,” said a spokesperson.

“For example, all BIC lighters sold in this country by BIC New Zealand feature a childresistant mechanism, which prevents at least 85% of children under the age of ﬁve from operating it.” In New Zealand BIC has added new products to its range over the last ﬁve years, including sleeves wraps designed with the consumer in mind, lighter cases and the Mega Lighter, all adding exciting variety to its range. ■ * Source: Aztec Data March 30th 2013 Grocery and PnC MAT / Internal Data

I LIKE BIC FOR MORE PROFIT +15% more margin with BIC sleeve lighters* Be part of the high margin added value lighter business** Choose from over 10 different designs in 2013*** BIC supports you with Point of Sale and marketing

GROW YOUR SALES WITH P.O.S Posters

Wobblers

Door Stickers

Counter Stands

3 Tier Stands

Grocery PnC Tobacconist

CALL YOUR BIC REPRESENTATIVE TODAY ON 09 630 5970 TO DISCUSS YOUR POS REQUIREMENTS *Based on MMRP vs. standard Maxi Lighter **Source: Aztec Data 2013 MAT Grocery and PnC in Value ***Seasonal Designs available throughout the year, please call for availability

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Towards a better future Are sustainability and packaging mutually exclusive terms? YOU need to be careful when throwing a word like ‘sustainability’ around.Your colleagues might start to give you sideways looks given how popular the word has been among politicians over the past couple of years. But is it wrong that a word like sustainability has been hi-jacked by environmentalism? I think so. Essentially, sustainability is a business that is able to generate shareholder returns in the long term. No more. No less. Sustainability is about being here tomorrow. In the same way, sustainable packaging innovation should be about delivering a cost advantage to the business. After all it needs to make economic sense first and foremost. Initiatives like reducing material inputs and optimising packaging to be ‘fit for purpose’ directly contribute to a business’ profit margin, which in turn creates a more sustainable business. The most elegant sustainable packaging innovations can sometimes just be a case of common sense by removing the packaging input at the start of the process, rather than finding a use for it at the end of its life. Looking globally, The Dell Computer Company has proclaimed a 2020 goal of having waste free packaging. This includes using 100% sustainable materials and ensuring that 100% of its packaging is either recyclable or compostable at the end of its life. They have also indicated they will utilise wheat straw, a byproduct of the Chinese agriculture industry, by incorporating it into their cardboard boxes. This kind of thinking is becoming more and 50

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more prevalent among packaging users and manufacturers. Joining the chorus has been American brewer AB InBev, who has declared they will reduce their packaging usage by 100,000 tons over a five year period. A couple of further examples which have recently cropped up are cases of clever thinking to deal with packaging waste. The solutions deal with packaging waste either after the consumer has finished with the product, or by preventing the material from entering the system in the first place. Coca-Cola ran a campaign where they manufactured the bottle out of ice. Not only does this resonate with consumers from an environmental perspective – as in the bottle melts so therefore there is minimal packaging waste, but it is something so different that it immediately generates attention due to its uniqueness. PhD student Aaron Mickleson redesigned some familiar FMCG products under the banner of ‘The Disappearing Package’ (disappearingpackage.com) for his Masters thesis. The ultimate aim was to eliminate packaging waste entirely with the reasoning being that preventing packaging waste from entering the system is a better solution than dealing with it ‘post-consumer’.

I agree with this line of thinking, it’s akin to the old adage that prevention is better than the cure. The more the packaging sector adopts this thought process, the less we will see packaging waste ending up in landfill. The challenge and responsibility is for brand owners to hunt down sustainable packaging initiatives that deliver both a cost and environmental benefit, to be proactive and embrace the sustainable ideals that will only continue to gain momentum and communicate to the consumer that we are all working towards a better future.

Nick Rowe NPD & Packaging Technologist M. 0274441850 E. nick.rowe@silverfernfarms.co.nz

gs1

Chinese walls Dr Peter Stevens on market access and government-to-government assurances. There is a growing awareness that existing approaches to product assurance are coming under strain as food scares, the tidal wave of counterfeit products and consumer demands to know what is in their food (and that it is safe) increase. In recent weeks New Zealand has had very public issues around exports of meat, kiwifruit, infant formulas and milk products into the Chinese market. At GS1 we have assisted members who have found difficulties getting product into China, specific provinces and individual retailers, based on what the Chinese perceive to be inadequate identification, labelling and/or wanting to have more assurance over product origin/provenance. Now a ‘scrum’ of four senior ministers (Minister of Trade Tim Groser, Minister for Primary Industries Nathan Guy, Minister of Food Safety Nikki Kaye and Minister of Economic Development Steven Joyce) is forming to urgently work on a whole-of-government approach to assurance and market access into China. What New Zealand must recognise (and regulators must support traders in this regard) is that the environment has really shifted. An approach based on government-to-government assurance around provenance, traceability, food safety and quality is simply not adequate these days. Government jurisdiction finishes at its border. Now demands from consumers, traders and governments are reaching across borders – assurance must extend from the exporting country into the importing country. To meet these increasing requirements, industry has been working hard to look at approaches, standards and systems that will provide more integrity and supply chain visibility right from pasture-to-plate. Sometimes these methodologies are called full-chain traceability;

Dr Peter Stevens,

other times the CEO, GS1. phrase e-pedigree is Email: peter.stevens@gs1nz.org. used. Standards such as the Electronic Product Code and their companion EPCIS standards are the normal suite of tools utilised. The EU traceability requirements and the US Food Modernization Act have been drivers for some of this activity, but now the Chinese market is dominating thinking. The requirements often boil down to the same thing: “Tell us what the product is and where it came from, assure us that it is genuine and safe for me and let me verify that claim for myself.” It seems that more than ever government must work together in partnership with industry. One party cannot solve these requirements in isolation. There are some very pleasing signs around

It seems that more than ever government must work together in partnership with industry. partnership from the Ministry for Primary Industries (MPI); indeed their Strategy 2030 Document speciﬁcally has ‘partnering’ as one of their two go-to-market approaches. And MPI’s measures of their success are strongly and explicitly based on making the primary sector successful. As a cynic said to me recently, “It’s amazing what a one-word change in their name can do” (referring to the fact that they are the Ministry ‘for’ rather than ‘of’). Let’s hope that collectively we can do a great job of getting market access, meeting demands of consumers and keeping Chinese walls climbable. JULY 2013 FMCG

Tip Top goes natural Tip Top has announced one of its most significant innovations in the company’s history – the replacement of all artificial colours and flavours with natural alternatives. By January 2014, more than 120 Tip Top branded ice creams will only use natural colours and flavours identified by an ‘Only natural colours and flavours’ badge on the packaging. Tip Top’s latest move to improve its offering comes after more than two years of rigorous testing and research. The decision to ‘go natural’ came in response to New Zealanders’ growing preference for natural ingredients in their food. This trend was confirmed by consumer research

FMCG JULY 2013

carried out by the company which confirmed that 81% of Kiwis are aware that artificial colours and flavours exist in most ice cream brands, and 85% would prefer to have natural colours and flavours in their ice cream.* The first products to move to natural colours and flavours will be the two-litre range sold in grocery and scoop range sold in dairies. The first two-litre flavour will be the new Raspberry & Lemonade Fizz, which will be available in supermarkets from July 1. Tip Top will

The ﬁrst products to move to natural colours and ﬂavours will be the two-litre range sold in grocery and scoop range sold in dairies. would prefer. We decided the time was right for Tip Top to make this move.” Reinikkala added that the change was a significant time and people investment for the company. “There are very few manufacturers of our size in New Zealand who have instigated a project like this. This is one of our most significant innovations in our 75-year history and we at Tip Top are hugely proud of this achievement.”

not be increasing the list price of the ice creams as a result of these recipe changes. Minna Reinikkala, Tip Top group marketing manager commented, “Tip Top is fortunate in that we have a very loyal customer base. While we have always made ice creams in accordance with the Food Standards Code, we’ve taken this additional step to move to natural colours and flavours as a result of our consumers’ feedback; it has become a major part of our continuing innovation programme. “Tip Top has been working on this initiative for more than two years. Our taste experts have worked through every single recipe to identify natural replacements that continue to deliver the same great taste that Kiwis have come to love for more than 75 years. We have talked and worked closely with dozens of suppliers both in New Zealand and internationally.” Tip Top has been making ice cream in New Zealand since the 1930s and many of its popular flavours were created many years ago, such as the Trumpet which was launched in the 1960s. “When artificial colours and flavours were first used by the food industry many years ago, they were considered to be leading edge. They gave consistency in taste and appearance and enhanced natural colours already in ice cream – this is why many food manufacturers still use them,” said Reinikkala. “However times have changed and nowadays we can provide our customers with the same Tip Top ice cream flavours they’ve enjoyed over the years, but with the natural colours and flavours we know they

*Tip Top Consumer Research (Source: Ideafarm Panel Survey - people who consume/purchase dairy products who have agreed to do surveys about dairy products, May 2013, n=750 Consumer awareness of the presence of artificial colours and flavours in ice cream is based on ratings higher than 5 where 1 ‘Not used at all’ to 10 ‘used in all ice cream’

Tip Top branded products which have changed to natural colours and flavours will carry the accompanying logo, Only Natural Colours and Flavours. This will appear across Tip Top point of sale, communications and on the following packaging: • Tip Top 2 litre • Tip Top Creamy Yoghurt Ice Cream 1.6 litre • Tip Top Favourites Multipacks and Novelties • Fruju Multipacks and Novelties Tip Top’s Crammed, Popsicle (excluding Popsicle Slushy) and IceBar Co ranges are already free of artificial colours and flavours. The first products to move to Natural Colours and Flavours will be the 2-litre and scoop range. The first 2-litre flavour will be the new Raspberry & Lemonade Fizz; this will be followed by other 2-litre variants in July and August.

Launch dates • • • •

2-Litre and Scoop (July - August) Memphis (August- September) Favourites, Fruju and Popsicle Slushy (September – October) Trumpet (November - December)

JULY 2013 FMCG

Rest and meal breaks Sensible changes to current laws are not a form of “slavery”, says Trina Snow. Trina Snow Snow, executive director, NARGON.

In their latest package of labour law reforms, the National-led Government has proposed changes to rest and meal breaks in the Employment Relations Amendment Bill (2013), which passed its first reading in Parliament on June 5. NARGON supports the proposed changes to rest and meal breaks as sensible and flexible. Sole charge stores and shops with only a couple of staff members have reported that the current requirements are difficult and impractical. How does a sole charge staff member take a proper meal break in the middle of their shift without shutting the shop? Larger stores have more staff, which usually makes it easier to roster breaks without affecting business operations or customers. Here is what will actually happen if the legislation is passed. An employer may impose certain restrictions on rest and meal break provisions if it is reasonable, given the nature of the work. If the employer and employee cannot agree when a rest or meal break is to be taken and/or for how long, the employer may specify reasonable times and durations that, having regard to the employer’s operational environment or resources and the employee’s interests, mean the employer can maintain continuity of service. Rest and meal breaks need not be provided if the employer and employee can agree on compensatory measures, or if the employer cannot reasonably provide them given the nature of the employee’s work. Where rest and meal breaks are not provided, reasonable compensatory measures must be available, such as time off work. Most stores would consider that approach eminently reasonable. In the vast majority of instances, employers and employees will be able to agree on a mutually acceptable set of breaks. Where they cannot, employers can specify break times and durations, but have to provide compensation for the loss or curtailment of any breaks.

FMCG JULY 2013

However, some of the rhetoric during the Parliamentary debate was extreme and unwarranted. It is worth highlighting some of the comments by our elected representative about how they view these proposed changes and, indeed, employment relations in general. Some of the quotes below have been edited for clarity. Darien Fenton (Labour party) said: “National has reverted to its modus operandi of last century, dressed up in the soft-soap language of choice and ﬂexibility. John Key’s Government has held down the minimum wage, it has cut young workers’ pay and now it is gutting the primary wage-ﬁxing mechanism. It is about National looking after its wealthy mates at the expense of everyone else.” She said the changes in the bill were “taking away the right to a tea break” and “what that means is the boss will decide whether workers get their break. What is even worse is that workers will be required to work during unpaid meal breaks. I do not know what the name is for that. I think years ago they used to call it slavery...”. NARGON rejects the suggestion that the changes will result in unpaid meal breaks and laments the comparison between moderate changes to employment law with slavery, a dark chapter in human history. Labour MP Andrew Little backed away from the slavery comparison slightly by saying “the disappointing thing is that every law change this Government has made in employment law has taken us back towards the masterservant relationship. This is the Government of master and servant.” From the Greens, Denise Roche argued “this is a noxious piece of legislation. It goes hand in hand with other noxious legislation like the youth rates and the 90-day rule.” In her view, “this bill perpetuates a narrative that employers are benevolent creatures who charitably offer jobs to workers and that we should all be grateful.” Sue Moroney, Labour, asserted “we have 1500 people lining up for 30 minimum-wage jobs at supermarkets every day of the week — as if there were that many jobs every day of the week — guess where the power lies in that relationship?” Put aside the rhetoric, the Government’s sensible changes should be supported.

BEST NZ ICE CREAMS AWARDED A New Zealand product has won the ‘World’s Best Ice Cream’ award from the international Ice Cream Consortium – Tip Top’s Crammed Jammin’ Cream Donut beat entries from 35 other countries to take the title. Closer to home, Tip Top also scooped the Supreme Award for a Large Manufacturer at this year’s New Zealand Ice Cream Awards. Tip Top Boysenberry Ripple Ice Cream was voted ‘Best in Category for Standard Ice Cream’. This is the fourth year in a row that this ice cream has won the ‘Best in Category for Standard Ice Cream’, but is the ﬁrst time it has won the Supreme Award. Six judges took two full days to judge the entries. Judging involved awarding points for a number of key attributes such as appearance, texture and ﬂavour. Twelve children aged 7 – 11 years from Pt England School in Glen Innes judged the Kids’ Choice category. This is the 17th year of the New Zealand Ice Cream Awards, but the number of entries and participating companies just continues to grow. What started off in

Tip Top’s representative with some of the awards sponsors: (L-R) David Rout of Formula Foods, Vanessa Riechelmann and Ruth Leary of Invita NZ Ltd, Catherine Abrahall of Fonterra Brands (Tip Top) Ltd, Janet Donovan of Hawkins Watts Limited, Rob Rich of Fonterra NZ.

1997 with six categories and 61 entries has developed into a competition of 11 categories and 307 entries in 2013. The number of participating entrants has grown to 35, and they range in size from small gelato manufacturers to those making millions of litres of ice cream per year. ●

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the business of liquor reselling

New beer packaging Keith Stewart wonders: Is the future in glass or aluminium? WHAT is the chance that the next special offer on the shop floor will be beer in paper? It may sound strange, but as the whole beverage packaging market goes through its most volatile state ever, the future of bottles may be numbered, especially if there is any more pressure on brewers to engage with more sustainable packaging. One of the most exciting developments, or the most quirky depending on your perspective, is the newly released Beck’s Edison bottle, tooled to play music. Becks claims this is a world first for New Zealand, and it certainly is a first in terms of attracting media attention to the brand. Whether this is more than a one off, and Becks develops a whole portfolio of musical beer bottles remains to be seen, but in terms of hype and internet impact, it has already been a winner.

The future drama, however, is more likely to come from new packaging materials. Glass was once leading edge in an industry that sold most of its products from a tap in draught form in on-license premises. But as off license retail now dominates the beer business here and overseas, glass is the standard and innovation is one key to the future. For many craft breweries, the sector that is growing fastest in retail, just moving into packaged beer rather than draught is a major development that demands different logistical and marketing support for its brands.

But once this challenge has been met, it becomes just a matter of time before this innovative sector will take on the high cost, high proﬁle packaging tricks such as that undertaken by Becks with its musical bottle, and Heineken with its high tech, limited edition, aluminium ‘bottles’. These Heineken aluminiums are a European initiative, and have gone down well with the market there, but have had limited exposure in New Zealand because of the freight costs of getting them here. As packaging gains a higher value in the retail space, however, look for more initiatives like this on the big brands. Big move to cans As for the craft, and imported authentic section featuring high quality beers, the big move now is into cans. This has been made clear by the arrival of premium German beers in cans from producers located in what was once East Germany. The recently landed Paderborner Pilsener is a leading example, with the cans showing how well protected the beer is from light shock, delivering quality that is noticeable by this well informed sector of the market. Cans are catching on in the US as well, where the craft market is also booming. Most recently craft sector market leader, Samuel Adams made the move into cans, smartly called Sam Cans, for its beers. With Samuel Adams’ range now available in New Zealand, the presence of the Sam Can could have an inﬂuence on the rest of the premium beer market that is such a feature of supermarket trading now. Taken by the added value aspect of aluminium as a quality container, US brewer, Anheuser-Busch InBev has just relaunched its Bud-Light Platinum in reclosable aluminium cans. Whether the reclosable

feature is an asset is open to doubt, but the crisp looking, unbreakable, recyclable pack certainly is smart to look at. However, whether the quality image is being strengthened by having Bud Light in the pack is also doubtful. Other features of the beer package market are the recent promise by Anheuser-Busch InBev to address sustainability issues by cutting packaging waste by 100,000 tonnes over the next ﬁve years. This is one reason for the move towards aluminium, other than its beer quality advantages and should be considered alongside the company’s introduction of lightweight glass for its Becks brand, which it claims will

Bio-nano packaging is on its way, with a raft of mind boggling attributes reduce packaging waste by 2500 tonnes this year. But before you get comfortable with aluminium or light glass as the way of the future, looming over the horizon is a new generation of packaging that will make Beck’s musical bottles look like Victorian music hall survivors. Bio-nano packaging is on its way, with a raft of mind boggling attributes that are giving it the advanced title of “intelligent packaging”. Never mind beer bottles that can play you a tune, we are talking beer containers that make beer safer, longer lasting and secure from oxygen contamination. You may even be able to let them tell you about the beer inside. That is, if they can ﬁrst solve the current problem that they leak. ●

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

JULY 2013 FMCG

MADE TO MATCH TVNZ, BrandWorld and Lion have joined forces to create a new branded content series with celebrity chef Al Brown at the helm titled Made to Match – a simple guide to beer and how it matches with food. Designed to educate and inform consumers on what the different beers are made from, how they taste and what they taste best with, even answering common questions like: How many calories are in my drink and should I drink from a bottle or glass? Dave Pearce, Lion’s marketing manager for premium beers comments: “It has been said that a rising tide lifts all boats. We know that this investment will beneﬁt all beers in the market, but we believe it’s well worth it. It’s been a long time since anyone has given simple generic advice on the different types of beer available to help people make informed choices, rather than being misled by fashion and trend.” In making this series, Brown says he’s also learning and exploring

New Zealand’s vast beer market in a new way. “What we are trying to do here is give people the conﬁdence to keep learning and trying new things. These beers are a really good way to begin learning about the complexities of beer. It’s been a learning curve for me to understand the process of making beer and the nuances of a great match. A good pairing harmonises the eating and drinking experience and creates a real sense of surprise and delight for me.” Made to Match extends from TV to online with the madetomatch. co.nz website, as well as in-store with stands for featured products appearing in supermarkets, bottle stores and pubs. “Made to Match is a complete evolution in content marketing. We would never have been able to create this a few years ago as the marketing world was still too attached to the old brand ad advertising style. This new branded content style offers advertisers

Al Brown

a whole new way to promote a number of products to a large audience in a cost-effective and powerful way,” says Mike O’Sullivan, executive director of content marketing and advertising company BrandWorld. Made to Match will feature a new beer and recipe every month, while the website and instore POS will offer further beer information about other beer and food matchings regularly. ●

CRAFT BEER IN A CAN In a New Zealand ﬁrst, the Boundary Road Brewery is offering three of its craft beers in 330ml 6-can packs from July: Bouncing Czech Pilsener Lager (5.2%), Flying Fortress New Zealand Pale Ale (4.6%) and Mumbo Jumbo IPA (5.2%). Boundary Road Brewery marketing manager Ben Shaw says there is an increasing trend globally of using cans to package craft beer, and he is proud that the brewery is the ﬁrst to do so in New Zealand. “Most leading craft breweries overseas are offering their topselling variants in cans, and I believe we’ll start to see this trend

become popular here. We hope to dispel the myth that beer in a can tastes bad and to educate Kiwis on the beneﬁts of cans with our new offering,” says Shaw. “Cans have often been associated with tasteless beer but, in fact, cans recycle easily, chill faster than bottled products, are

portable, and most importantly, cans protect the product from sunlight,” he says. The Boundary Road Brewery craft beer can range is available at all good liquor outlets and supermarkets nationwide (RRP $15.99 for 6 x 330ml packs). To support the new cans range, Boundary Road Brewery is launching a consumer campaign: The Blind Taste Test. The campaign aims to dispel the myth that canned beer tastes bad and will educate people on the beneﬁts of cans. For more information visit www.facebook. com/brb. ●

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VILLA MARIA’S NEW LOOK FOR BEST EVER VINTAGE Wine lovers are set to sample what could be New Zealand’s best ever vintage this year, thanks to one of the country’s most

memorable summers. Months of hot and dry weather provided vintners with optimum conditions to produce a standard of wine that hasn’t been matched in 15 years. Villa Maria founder, Sir George Fistonich, says our long summer has allowed grapes to reach prime ripeness, creating perfectly balanced sugar levels and excellent ﬂavour. “I’ve been making wine for more than 50 years and it’s not the ﬁrst time we’ve had a summer like this. We had similar conditions in 1998, which until now was widely held as the country’s best ever vintage. “But, 15 years of advancements in winemaking technology paired with perfect growing conditions means this year is set to exceed all previous vintages. Wine drinkers can expect great things from 2013 – I think it’s going to be a truly historic year for New Zealand wine,” he says.

The winery’s ﬁrst wine to be bottled this year is Villa Maria’s Private Bin Marlborough Sauvignon Blanc 2013. Sir George says the hints of passionfruit and fresh lime in this year’s vintage of New Zealand’s most popular varietal will give wine drinkers a delicious taste of summer and sets the standard to expect more exceptional 2013 wines. Following Villa Maria’s 50th anniversary, the company has redesigned its packaging to emphasise its New Zealand origin and help it to stand out on shelves. “Over 70% of our wine is exported around the world, and we want to show international shoppers exactly where our wine is produced, and emphasise its quality with a more contemporary looking label. It’s ﬁtting to be able to label our best vintage with a design that will be remembered,” Sir George says. ●

NEW NAME FOR FEDERAL GEO Federal Geo, a leading independent alcoholic beverage company, has announced they will now be known as Federal Merchants & Co. The 100% New Zealand-owned company has over 90 high proﬁle and awardwinning brands in its portfolio. After 15 years of shared innovation, change, and experience within the beverage industry, the company moves towards a more contemporary image, designed to further complement its extensive portfolio of leading domestic and international brands. The name change comes as owner operators

FMCG JULY 2013

As Federal Merchants Aidin Dennis and & Co looks to the Mark Mayers set future of the beverage their sights on distribution industry growth as one of in New Zealand, the New Zealand’s new name, along with premium beverage being a refreshing distributors. change with new “Changing our Aidin Dennis, owner Federal Merchants & Co. leadership, reflects the name to Federal company’s attitude Merchants & Co towards growth, its high profile, truly reﬂects who we are today. We and its award winning portfolio. have chosen a name which not only retains our history as leading beverage The transition to the new name includes a new website and distributors, but also represents the logo. For more information visit contemporary nature and demands federalmerchants.co.nz. ● of our business,” says Dennis.

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Muscat – slapper, beauty or both? Keith Stewart considers some extremely drinkable wines. When pioneer winemaker, José Solé gave evidence to a Parliamentary select committee in 1890, he told of the grape varieties he was growing in his Whanganui vineyard, including one with the entrancing name Guzzley Frontignan. Frontignan is a French name for a member of the muscat family of grapes, and the term guzzley is pertinent for it clearly describes the appeal of wines made from it: They are, to use a modern term, extremely drinkable. Indeed, so drinkable that from New Zealand to Russia muscat grape varieties produce some of the most popular wine styles on Earth. Winemakers call them “forward”, which means they smell and taste deliciously fruity and are ready to quaff almost before they have ﬁnished fermenting. Winegrowers will conﬁrm that muscat grapes are the variety most likely to be eaten in the vineyard by pickers, but in spite of this they also have the appeal for winemakers, of being productive and cheap to grow. They are delicious, make lovely slurping wine and are inexpensive. No wonder they are so popular. Muscats are most famous in this part of the world as the grape variety responsible for the lusciously fruit and sweet sparkling wine from Italy, Asti Spumante. It is muscat that gives the wine its delightful fruitiness, similar in aroma to those dried muscatels desert grapes that are favoured at Christmas. Low in alcohol, fresh as a daisy and

FMCG JULY 2013

sweet, Asti Spumante is an industrial version of Moscato, a very light, foaming wine made from muscat grapes in the north of Italy that is one of the most refreshing of all wines. Asti is sweeter, and due to its industrial manufacturing process, signiﬁcantly cheaper, which conspires with its sweetness to have given it a reputation as tasteless plonk. This is misleading, and its value is not so much as a replacement for champagne as a pre-dinner introduction, but as a later in the evening reviver, a sweet splash of energy and sweetness that can revitalise the most jaded palates without blasting its drinkers with an excess of alcohol.

New Zealand has proven especially adept at producing muscat based sparkling wines at inexpensive retail prices, and these continue to be popular both for price and the character they deliver. Bernadino has long been a market leader, because of its clean, professional production values and wide distribution, but there are a number of others that make the sector more interesting. Amongst these is Soljan’s Fusion Sparkling Muscat, which matches Bernadino in its professional standards, and Millton Vineyard’s clever sparkling Muskats at Dawn. This is probably the best quality muscat in the country, although the more seriously Alsace-style Blackenbrook Still Muscat is right up there. This wine is lighter and drier than traditional muscat wines in this country, but is a worthy alternative in the different wines category. Also worth noting, as well as the Italian Astis that are still popular imports, are Australia’s alternatives, including Brown Brothers’ Moscato, an Antipodean version of the original Moscatos that predated Asti. A foamy, rather than ﬁzzy wine, it comes in both rosé and white versions and features the lip-smacking fruit character typical of this variety. ●

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

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DIARY FMCG INDUSTRY EVENTS 2013

SEPTEMBER 13-15

THE FOOD SHOW

CBS Canterbury Arena, Christchurch, NZ www.foodshow.co.nz 16-20

DRINKTEC

Munich, Germany

JULY

www.drinktec.com 23

SUPREME PIE AWARDS

Langham Hotel, Auckland, NZ

www.nzbakels.co.nz

In association with Massey University Gala Awards Dinner, Auckland, NZ

AUGUST 1-4

NZ FOOD AWARDS

www.foodawards.co.nz

THE FOOD SHOW

22-27

FOOD & GROCERY EXECUTIVE PROGRAM

ASB Showgrounds, Auckland, NZ

Mt Eliza Centre for Executive Education, Victoria, Australia

www.foodshow.co.nz

www.ifgm.com.au/fgep

OCTOBER

SELAKS NZ ROAST DAY www.selaksnzroastday.co.nz

5-9

ANUGA

Cologne, Germany

AIR NEW ZEALAND WINE AWARDS

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Competition entries open

NOVEMBER

www.airnzwineawards.com 24-25

2-3

GLUTEN FREE FOOD & ALLERGY SHOW

Pioneer Recreation & Sport Centre Christchurch, NZ

Claudelands Exhibition Centre, Hamilton, NZ www.glutenallergy.co.nz 31

GROCERY CHARITY BALL

GLUTEN FREE FOOD & ALLERGY SHOW

www.glutenallergy.co.nz 23

AIR NEW ZEALAND WINE AWARDS

Langham Hotel, Auckland, NZ

Queenstown, NZ

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LLIAM

Aitken &Co.