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AUGUST 2013 VOLUME 19 No 7 $9.15

THE BUSINESS OF MANUFACTURING • LOGISTICS • SUPERMARKETING

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contents

Up Front 6 7

Editor’s note FMCG Online Exclusive features to get you clickingg

Industry news

AUGUST 2013

Category checks

20 26 28

Eggs & Poultry International foods Sunscreens & Depilatories

Regulars 12

Nargon Trina Snow examines a recent shopping ping survey

Beef + Lamb Rod Slater, CEO, on strengthening Quality Mark standards

Feature All good growth in the Fairtrade banana market

Fresh and local In season

Health & Beauty Sunscreens & Depilatory products

FGC

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Diary Your guide to upcoming industry events

OUR COVER The new VO5 range is arriving in store.

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

38 40

Grocery business news Proﬁle Lights, camera, cook!

Recruitment

AUGUST 2013

Hamish Barr on “The sad state of key account management”

Feature A converging world

Marketing & Planograms More planning, less chaos

Packaging Nick Rowe considers alternative packaging solutions

Convenience store and oil channel updates

Nargon Learning from international trends

49 49

C-store news Resource directory

Feature Cola flavoured wine?

BWS news

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editor’s note VOL 19

NO 7

AUGUST 2013

ISSN 1175-8279

Incorporating

Serving the business of manufacturing, logistics and supermarketing

TAMARA RUBANOWSKI – EDITOR editor@fmcg.co.nz

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Improving the brand experience PAK’nSAVE and Pams have just come out tops at the annual Readers Digest Most Trusted Brand Awards 2013, where PAK’nSAVE won the Most Trusted Supermarket honour, New World was the highly commended runner up and Pams won the new category of Most Trusted Home Brand award. More than 1520 New Zealanders were asked what brands they trusted, for this independent survey. Consumers are asking more questions of their food suppliers and many also want to know the products they are buying are grown locally and humanely. While some shoppers remain hardcore bargain hunters, others are prepared to pay a bit more for new and improved offerings with an ethical, or artisan approach. Look out for more local products carrying the SPCA’s Blue Tick, such as the wonderful Waitoa free range chicken products, or Tegel’s ‘Free Range Frozen Turkey Boneless Roast’, handcrafted with cranberry stuffing and marinated to enhance texture and flavour. The blue tick means consumers can be assured of farming methods in accordance with the SPCA’s free range standards. In this issue, we bring you the highlights from the Supreme Pie Awards, Beef + Lamb NZ CEO Rod Slater reports on strengthening the profile of the Quality Mark and FGC CEO Katherine Rich takes the media to task over some rather irresponsible claims.

Get the low down on seasonal produce, Fairtrade bananas, and food packaging made out of food (yes, that’s right). We also talk to egg and poultry suppliers, as well as stakeholders in the international foods and health & beauty sector, to find out what’s new in store. Among some of the more unusual recent launches is a new herbal tonic designed for those who experience sleep problems. The ‘Good Night’ relaxation beverage is now arriving in supermarkets. We are witnessing fundamental changes in how consumers use smart, connected devices – for research, communication, consuming media and making payments. For retailers, this convergence means enhancing their offering to meet customer expectations and improve the brand experience. You might want to consider optimising your website for mobile, or you may want to update your terminals to enable the latest contactless payment technology. More on these developments in our Grocery Business section on pages 42-43. Last but not least, please remember to email us your industry news and if you include one of your favourite snaps then you will be in the draw for a great prize. This month’s winner will receive a hamper filled with goodies from Danny’s Pitabread. Enjoy this issue,

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.

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

Q&A Doris Evans talks to Manas Kumar, CEO Optimizer HQ, about a new mobile payment device developed in New Zealand. Visit fmcg.co.nz for the full interview.

BEERS FIT FOR ROYALTY To celebrate the new heir to the British throne, a New Zealand brewery has created a range of beers ﬁt for royalty. See all the details online at fmcg.co.nz.

TOP FASHION PRIZE FROM COTTONELLE Thanks to Cottonelle, international supermodel Kylie Bax and a unique fashion education collaboration, a young designer’s work is expected to capture global attention. Find out more on fmcg.co.nz.

NEW PRODUCTS From the latest in health & beauty to Grifﬁn’s Treat Packs, take a sneak peek at some exciting product launches online.

FINANCIAL ADVICE How do you select a ﬁnancial adviser? Peter Christensen, chairman of the Camelot Group, explains the basics in this exclusive online column.

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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n ews AUTHENTICITY A KEY FOOD TREND New Zealanders are asking more questions of their food suppliers and want to know the products they are buying are grown locally, humanely and with an artisan approach, according to Dona White, CEO of North Port Events. White’s team organises The Food Show, which came to Auckland again in early August at the ASB Showgrounds. The Food Show has been running for thirteen years and 2013 saw the opening of a new area in the event dedicated to healthy living. “Our Healthy Living Zone caters for the demand in juicing, blending and healthier food choices,” says White. “Our exhibitors have said that people ask far more questions than before about what’s in the food they’re selling, even as it applies to staples like bacon and butter.” And with cooking TV shows on the rise, more men are getting into the kitchen. People are also taking challenges in their dinner parties and entertaining more - realising they can actually cook like a pro at home. “Baking is also HUGE thanks to the rise of the baking shows on television,” says White. “We’re also seeing a trend towards easyto-prepare meals, ready-made meals and home delivery fruit, veg and even ‘full meal’ ingredients delivered to your door.” Boutique beers, micro-breweries and wine offerings that play up the importance of the winemaker, the philosophy of the growing and the science behind it are also popular every year. “Cheese continues to be popular and New Zealanders are adventurous and willing to experiment with all varieties,” says White. “We could never get enough cheese in the show to satisfy the visitor demand.” “Last but not least, gizmos and gadgets that make food prep easy are hot and retro food processors, toasters, you name it, they ﬂy out the door,” says White. The countdown to The Food Show Christchurch is now on and

the organisers are pleased to announce nearly 100 exhibitors are already on board, along with an impressive line-up of top culinary talent ready to share their tips and tricks. From September 13-15 the CBS Canterbury Arena will come alive with the sounds and smells of delicious food and drink, at the event for people who love eating, drinking, cooking and entertaining. The Food Show in Christchurch showcases the best of local food and drink companies as well as culinary offerings from all over New Zealand. “Last year, more than 10,000 people came to The Food Show in Christchurch,” says White. Local hero Bevan Smith from Riverstone Kitchen, travelling foodie Nici Wickes, Darren Wright from Chillingworth Road, Sean Connolly from The Grill in Auckland, one of Christchurch’s favourite chefs Jonny Schwass, Andrew Brown from The George, Ray McVinnie and MasterChef New Zealand 2013 winner Aaron Brunet will be presenting fascinating workshops. Exhibitors will include Lewis Road Creamery premium butter, Barry’s Bay Cheese from the Banks Peninsula and Ruahine Ports, aged within NZ native wood. ●

OLD SPICE COMES ASHORE IN NEW ZEALAND The Old Spice brand is introducing a line of ‘manly scented’ grooming products to the men of New Zealand. Having established itself as the No.1-selling antiperspirant and deodorant and body wash brand in North America, Old Spice now aims to leverage its more than 70-year history to help New Zealand men look and smell their best with a full range of uniquely scented Old Spice products. Lisa Cunningham, spokesperson for Old Spice says: “Our aim is to connect the many distinctive scents of Old Spice with the hearts, minds and noses of New Zealand men.” The Old Spice male grooming portfolio will feature six products, including body sprays, body washes, deodorant sticks and its iconic aftershave. The products will be on shelf from September in leading supermarkets and pharmacies nationwide. The scent line-up was developed by Procter & Gamble perfumers in collaboration with their ﬁne fragrance houses, which created such leading fragrances as Hugo Boss, Lacoste and Laura Biagiotti. ●

FMCG AUGUST 2013

n ews PAK’NSAVE AND PAMS TRIUMPH IN MOST TRUSTED BRAND AWARDS PAK’nSAVE and Pams have come out tops at the annual Readers Digest Most Trusted Brand Awards 2013, winning two of the prizes. PAK’nSAVE has won the competitive Most Trusted Supermarket honour, New World the highly commended runner up in that category and Pams won the new category of Most Trusted Home Brand award. The independent survey asked more than 1520 New Zealanders what brands they trusted across a range of categories. Steve Anderson, CEO of Foodstuffs New Zealand says: “There is a lot of competition in the supermarket industry and New Zealand shoppers want great quality food, a good range of products at the right price.” “I think this award indicates that we are delivering on our PAK’nSAVE promise that we won’t be beaten on price and that is why Kiwis continue to trust us over any other supermarket,” he says. Anderson says winning the Most Trusted Home Brand is also a special honour. “Pams was the ﬁrst own brand in the country. It ﬁrst graced the iconic Four Square shelves in 1937 supplying baking and custard powder, the range has now swelled to more than 2500 different products and is now in demand across our supermarket shelves.” “I am extremely proud of all the teams across PAK’nSAVE, New

World and Pams. It is a huge pat-on-the-back THANKS FOR VOTING, having our customers take NEW ZEALAND. I’M THRILLED TO BITS! time out of their busy days to vote for us and recognise our hard work,” he says. PAK’nSAVE and New World continue to develop stores across the country, upgrading, refurbishing and building brand new supermarkets, which feature a range of environmental initiatives and innovation from energy-efﬁcient lighting to low-emission refrigeration systems. Store owner-operators of PAK’nSAVE’s and New World’s all over the country are sponsoring a multitude of local community schools, sporting teams and businesses. Since 2003, Pams assists with the promotion of the annual Bandanna Week for CanTeen. Pams also supports a national nutrition-education initiative, Food For Thought, designed for primary school teachers to teach kids to make healthier food and lifestyle choices. ●

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AUGUST 2013 FMCG

n ews MINCE AND CHEESE PIE REIGNS SUPREME IN 2103 Nostalgia was in the air at this year’s pie awards and despite some very creative concoctions on offer, a “perfect little mince and cheese pie” took out the coveted title in the 2013 Bakels New Zealand Supreme Pie Awards. The announcement at a glittering Gala dinner on July 23 ended the controversial two-year winning streak for fruit pies. Crafted by David Liem of Greenland Bakery & Café in Botany, Auckland, the winning mince and cheese pie held its own in a field of exotic entries, which included ostrich; pulled pork, peas, puha & scrumpy cider; duck breast, orange, bacon, mushroom & cream; and a lamb rump, beetroot, onion, lemon zest & dried thyme pie. Attracting a record-breaking 4522 pies from 505 pie makers (the highest ever entries in the 17 year history of the awards), this year’s Supreme Pie Awards saw a resurgence of the ‘classic’ categories – with 634 mince and cheese, and a whopping 682 steak and cheese pies submitted for judging. With hundreds of mince and cheese pies to choose from, the flavours had to be ‘just so’ to impress the judges’ finely tuned taste buds. But judge and Bakels’ executive chairman, Duncan Loney described the winner as “impeccable.” “It was well rounded and well flavoured, with a perfect balance between the strength of the mince and the cheese. The pastry was good quality, with a crunchy flaky top, robust rim, and a lovely even colour. It stood out.” Celebrity judge Michael Meredith described the mince and cheese winner as iconic.

Dad’s Pies’ owner Eddie Grooten with Mike Welch and their team (centre) receive their Award from Graeme Hill of RadioLIVE (L) and Brent Kersel, GM NZ Bakels (R).

FMCG AUGUST 2013

(L to R) Amanda Gillies, TV3 News; Roger Cathro, PAK’nSAVE Petone and Tony Marshall, NZ Bakels.

“The balance between the pastry and filling was perfect – it brought me back to my old school days, the visits to the tuck shop. It’s a classic.” Chief judge Tim Aspinall said the competition this year was tight, with just a few points separating the top category pies. “The beauty of these awards is that anyone from anywhere can win – from small bakers to the big commercial ones. There are so many finely crafted pies on offer, and every year new bakers enter.” Award winners were spread throughout the country with 22 winners (included Highly Commended) from Auckland, eight from Tauranga, four from the Hawke’s Bay, four from Christchurch, three each from the Waikato and Taupo, and one each for Dunedin, Northland, Wanganui, Rotorua and Wellington. A Steak & Cheese pie from Roger Cathro, PAK’nSAVE Petone, Wellington scored a gold medal, and the winner of the Commercial Wholesale category was Michael Welch of Dad’s Pies in Silverdale, Auckland. The Supreme Prize is worth $7,500 cash and the coveted Supreme Piemaker Trophy, while Gold award winners receive $1000 cash. ●

n ews TATUA’S CAN JUST GOT BIGGER! Tatua Co-operative Dairy Company has taken their Dairy Whip product to new heights, literally, by transforming one of their 12-metrehigh silos into a can of Tatua Dairy Whip. Tatua CEO Paul McGilvary said “we saw an opportunity to market one of our many products by utilising our existing infrastructure and factory location.” Tatua is the only manufacturer of aerosol cream in the Southern Hemisphere and sells their Tatua branded aerosol throughout New Zealand and Australia. McGilvary said “it’s a chance for us to celebrate making Tatua Dairy Whip for over 30 years and a perfect lead up to our centenary celebrations next year.” “We are trying to highlight the spirit of innovation is alive and well in our community,” McGilvary said. He hopes that the giant Tatua can will increase awareness among locals in the Waikato region as to what is being made and achieved in their own back yard. ●

NEW COUNTDOWN FOR SPITFIRE SQUARE Christchurch Airport and Progressive Enterprises have announced that a new Countdown supermarket will open within the airport’s Spitfire Square retail development. Airport chief commercial officer Blair Forgie says the new supermarket will be the anchor tenant for Spitfire Square. “We have the equivalent of the population of Timaru coming onto the airport campus every day, with many of them wanting everyday grocery and other items,” says Forgie. “The new supermarket will undoubtedly be used by airport staff and visitors alike.” Progressive Enterprises’ managing director Dave Chambers

said the company was pleased to be part of the new Spitfire Square development. “There’s a lot of exciting development in Christchurch, and it’s great to find a site tailored to meet the needs of a resident, worker and tourist population,” says Chambers. “Spitfire Square is a high-quality site; it’s the right size for the sort of offering we want to provide there and has all the access our customers demand. It’s going to be a great place to shop.” The supermarket is expected to be approximately 2700 square metres and aims to be trading by the end of 2014. ●

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AUGUST 2013 FMCG

na rgo n

Shoppers want both low cost and luxury items Trina Snow examines the ﬁndings of a recent survey. Trina Snow Snow, executive director, NARGON.

A major shopping survey in Europe conducted by research firm IRI has produced two key but contrasting conclusions, which should be of interest to supermarkets in New Zealand. The ‘Shopping in Tough Times’ report found that most shoppers are working hard to keep their shopping baskets within tight budgets through more planning, avoiding non-essential items, buying budget brands and increasingly using promotions and specials. However, the same survey also revealed that the very same shoppers were now more likely to include a couple of “treat” or “luxury” items into their shop, were looking to minimise the effort involved in saving and still wanted to actually enjoy their shopping experience. IRI’s Laura Volponi said the results showed the “days of different categories of shopper – the bargain hunters or quality crusaders for example – pacing the aisles in their store of choice are over.” Instead she described this low cost/luxury juxtaposition as the new “polarisation of the store shopper”. After analysing interviews with more than 26,000 consumers across nine European countries, IRI published a series of results for the new push to “back to basics shopping”, a trend they predict will stay even when economic conditions improve. Nearly three quarters (73%) are spending more time planning their shopping and avoiding non-essential purchases. And 80% of shoppers say they are paying more attention to in-store promotions and leaflets in the store, using online coupons, visiting stores’ websites searching for discounts and using price comparison websites. Shoppers in Europe were still more likely to be influenced by traditional in-store marketing activities, promotions, leaflets and coupons – rather than on-line promotions or social media. However, the results did vary considerably by country with Britain having a higher uptake of technology. Those “budget shopping” findings are backed up by confirmation that the number of economy food and

FMCG AUGUST 2013

drink products launched in the UK outstripped the number of premium launches for the first time ever in 2012. Research from Mintel showed that new UK product launches featuring economy claims accounted for 9% of total new food and drink launches in 2012, compared to 7% for products with premium claims. In contrast, back in 2008, premium was at 9% and economy at 2%. It has been a substantial shift. The same research found that promotional activity has become essential to more than half (55%) of British consumers who only buy certain products or brands when on promotion. Nearly four in ten (39%) shoppers say that promotions allow them to buy foods that they would not be able to afford otherwise. However, the IRI research also revealed most shoppers still looked for a little luxury and enjoyment while at the supermarket. IRI considered shoppers were weary of the effort involved in managing their budgets. With more than half of shoppers delaying holidays, new furniture and cars for example, they still want to find some enjoyment in their lives and this is being reflected in their shopping choices as little items of luxury slip into their trolleys. Typically, most shoppers would add one or two treats on an average shop. Shoppers also wanted to be able to navigate their favourite store quickly and find their favourite brands easily. Finally, the Mintel research noted a significant change in packaging policy from some manufacturers designed to meet the needs of the new, polarised shoppers. Mintel observed “some manufacturers introducing bigger and smaller pack formats. The larger formats have been used for years to give shoppers the economies of scale that help them to make savings, but smaller pack sizes are also becoming popular. This ‘buy-it-when-I-need-it’ approach to shopping is a coping mechanism that helps shoppers keep within their budgets for each single shop rather than spending more one week so that they can spend less the next and stock up for the future. Similar trends are likely occurring in New Zealand. Supermarkets here will need to strike a delicate balance between catering to the new budget conscious “back to basic” shopping habits with their shoppers’ on-going and understandable demand for a little luxury and enjoyment at the store.

b ee f + la m b

The year of the Quality Mark Rod Slater, CEO, Beef + Lamb New Zealand.

Rod Slater, CEO, Beef + Lamb New Zealand on strengthening Quality Mark standards.

You may recall around the same time last year, in this very column, I talked about reviewing and updating the New Zealand Beef and Lamb Quality Mark. I’m pleased to report that during the past 12 months we’ve done exactly that. We’ve researched, reviewed and discussed with industry new strategies and directions for the Quality Mark. And I’m pleased to report this upcoming year will be, the year of the New Zealand Beef and Lamb Quality Mark. Last year, I travelled across the country to meet with stakeholders and at the Auckland meetings it was proposed that labelling of Australian beef and lamb be included as part of the Retail Standards for the Quality Mark. Plenty of discussion was had around this, culminating with a further meeting in Auckland in May this year. All the companies who represent the vast majority of retail beef and lamb sales in New Zealand attended, as did processors. As Country of Origin labelling continues to be a relevant issue, our industry decided to act on this front, to be trail blazers in many respects, and to commit to voluntary Country of Origin labelling.

. . . from August 1, 2013 any Quality Mark retailers selling Australian beef and lamb will label it ‘Product of Australia’. For 15 years, the New Zealand Beef and Lamb Quality Mark has given consumers the assurance product carrying the Mark has been naturally raised in New Zealand. However, we’ve taken this one step further and from August 1, 2013 any Quality Mark retailers selling Australian beef and lamb will label it ‘Product of Australia’. We recognise Country of Origin is becoming increasingly important to New Zealanders

FMCG AUGUST 2013

and therefore this is just another natural step in ensuring Kiwis are fully informed about their beef and lamb purchases. As a result of this decision, we’ve identified a need to significantly increase auditing activity. From our point of view, we owe it to our industry to ensure we do have compliance across the board. Increased auditing will make sure this new standard is met. Not only have we committed to strengthening the Quality Mark standards, planning is also underway for our next above the line campaign, which will focus on the Quality Mark and what it means to consumers. We already know that we’ve achieved reasonably high recall through our current work with the Quality Mark; however we want to raise its profile once again. We’ll be working with our top level ambassadors, as well as retailers and food service leaders to help disseminate the message across New Zealand. So stay tuned; it’s onwards and upwards from here! For further information please visit: www.beeflambnz.co.nz or send me an email: rod@beeflambnz.co.nz .

Thereâ&#x20AC;&#x2122;s only i w i K l a e r one banana company

All Good is the only 100% Kiwi Fairtrade banana company, working directly with real Ecuador farmers.

Q&A

All good grow th in the Fairtrade banana market A small but mighty Kiwi-owned company tries to make a difference. ALL Good Bananas introduced New Zealand’s first Fairtrade bananas just three years ago. In that time they’ve carved a 5% share of the competitive banana market, establishing a premium banana proposition in a traditionally price competitive category (All Good Bananas are typically $1 more than their conventional counterparts). Earlier this year, the small Kiwiowned company was named one of the World’s Most Ethical Companies by New York-based Ethisphere Institute. We caught up with All Good managing director Chris Morrison, to discuss the All Good experience

and what the future holds for the market.

What makes All Good Bananas different? We have a direct relationship with our growers and that’s what really differentiates us - we know them, we’ve met them, we do business with them and not intermediaries or middle men. They are small business owners, just like us and there is a mutual respect for what we’re both trying to achieve. We’re also the only fully Kiwiowned banana importer providing 100% Fairtrade fruit to the market. We believe this is a powerful point

of difference in a market dominated by international companies. We’ve built a strong Kiwi brand that consumers connect with.

What do you think is one of the most important features of your business? We believe it’s really important to have good relationships with everyone in the supply chain, from the growers to the produce managers to our customers. We have a young team of passionate sales people who are on the ground, visiting and meeting with our clients frequently to make sure all their needs are met and making it personal.

Why do you think people are prepared to pay $1 more for All Good Bananas? We’ve spent a lot of time educating our customers about Fairtrade and the difference it makes. Telling the story of our growers and the impact being paid a fair and stable price for their crop has had on their lives, livelihood and community. When customers realise that paying a little bit more makes a huge difference to the lives of producers and their families – they see the real value in the price difference.

Does Fairtrade mean a premium or better quality product?

All Good MD Chris Morrison (in yellow shirt) talks to growers and inspects All Good fruit being packed in El Guabo, Ecuador.

FMCG AUGUST 2013

Many people will say all bananas are the same. But typically our bananas have been grown on smaller farms with less intensive agricultural techniques, organic fertiliser and more contained and controlled pest management. We can trace any of

s t ra p YOUR strap TRUSTED PARTNER FOR: Third Party Auditing and *LY[PÄJH[PVU 3HIVYH[VY` ;LZ[PUN Food and Environmental, Chemistry (including NIPs and Allergens) and Microbiology 0UK\Z[Y` ;YHPUPUN

All Good Bananas at Victoria Park New World.

Food Safety, Auditing Skills, HACCP

our boxes back to the farmer that grew and packed it, and have a robust quality control programme. Our growers are small owneroperators, they’re passionate and driven and we believe this creates an excellent end product. Our ripening and distribution is also managed in smaller quantities to maintain the optimum integrity of the fruit. All Good Bananas are the premium banana in the market; we regularly get very positive feedback from produce managers and customers.

What do you think the growth potential is for Fairtrade fruit?

El Guabo banana farmers Pedro and Graciella.

In the UK, 38% of bananas now sold in supermarkets are Fairtrade, helped by three major retailers switching their supply to 100% Fairtrade. In some parts of Europe over 50% of bananas sold are Fairtrade certified. If we look at these international trends, and the growth locally in ethical purchasing in the coffee, egg and meat categories, we believe there is definite growth for New Zealand in the area of Fairtrade fruit. Consumers are becoming more and

more interested where their food comes from and the people who grow it, whether locally in New Zealand or on the other side of the world. It’s recognised that the consumers are looking more and more at supporting companies and products that have an ethical and sustainable approach to business right through the supply chain.

Freephone 0508 00 11 22 www.asurequality.com Talk to us today to see how we can add value to your business.

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

IN THEIR PRIME The first whitebait and scallops are back - YES! Plenty of winter fruit: Lemons, navels, and mandarins. Kiwi kiwifruit and cherimoya. Imported mangos galore. The first new Hass avocados and the last expensive tamarillos. The traditional winter vegetables are still going strong this month: Yams, parsnips, carrots, Jerusalem artichokes and the best Brussels sprouts. Beautiful fat Pacific oysters (and lots of them please).

SHOT TO BITS Bluff oysters – damn it!

FISH & SEAFOOD Blue cod Now is the time for this beautifully flavoured if delicate white flesh. Dory (all deep sea Oreo Dory family) These are often quite good buying and are worthy of attention. Gurnard Always available and in the market at a very good price. Lovely fish you can’t afford to ignore. Moki (Blue and Silver) The season for this beautiful fish is again under way and this is a very good option at this time of year, reasonably priced too. Mussels (New Zealand Greenshell) This is our endemic mussel and a very fine thing it is too. We see so many now that we tend to take them for granted; well don’t. It is the best value shellfish available and has a very high meat-to-shell ratio, higher than any other. It is always available live in the shell and fresh or frozen on the half shell. Tuna This is the start of the season for the northern bluefin tuna, but you will not often see these giants in our market (it has the highest fat content so it all goes overseas). Most of the tuna we see here is big eye tuna from the Fiji area, although there are also a few yellowfin tuna on the market. Scallops are back in the market place and I had my first dozen (or three) this week. The fresh New Zealand scallop is a joy, but expensive. Whitebait The whitebait fishing season for most of New Zealand opens on August 15 and runs until November 30. Except on the West Coast where the whitebait season runs from September 1 until November 14.

MEAT All types of red meat are on the rise, but it is not a steep rise. Lamb The price trend is rising, driven by a worldwide shortage, a ﬁrming currency and an expanding Chinese market allowing less dependency on traditional European and Arab destinations. Prices are still 31 cents/kg

FMCG MAY 2013

(carcass weight) behind last year, which on a 17.5kg lamb is about $5.42 a head. Mutton The Chinese demand has seen mutton schedules rising lately. Beef prices are also moving up this month. Local trade schedules are rising at 430-460c/kg about 20c/kg above this time last year and are ahead of export schedules. Farmed venison The market for deer meat is still dominated by a diverse European clientele and prices are starting to rise, but are still 65c/kg behind last year.

FRUIT Apples All the New Zealand seasonal apples are still good quality, so we don’t need any imported ones quite yet. However Royal Gala will be about done soon and all the other New Zealand apples will effectively be gone by the end of October. Avocados The old season’s fruit is still around but these have just about done their dash. Watch the quality as I’ve seen some pretty poor fruit in retail lately. The ﬁrst new season Hass and Hayes (pebbly skinned), our best avocados, start to come on stream later this month.

Citrus This is the time for our local citrus varieties. Tangelos will be the best buying from mid to late September and keep an eye out for the Navelina, that orange out of Gisborne that’s been around for about ﬁve years now. It has a good large, even shape and is available from July to November. There will be plenty of well priced navels around from now on. Lemons and limes will be arriving in better quantities also. Mandarins are still going strong. The Clementine variety started in early July and the Satsuma were a bit earlier in late May early June. Expect them to peter out by the end of September. Kiwis Push out our Kiwifruit as the main crop is in full swing and prices and supply is remarkably good (considering the hooha about the Psa disaster). Mangoes Heaps of Mexican fruit on the market and bloody good quality and at a bloody good price. Mangosteen Here is a fruit we don’t

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see that often, but recently there have been a few in the market from Thailand. They may seem a little expensive but worth a try. Persimmons will be around for a while. Stone fruit It’s all the imported pretty looking fruit , but pretty tasteless as usual. Strawberries Keep an eye out for the ﬁrst New Zealand strawberries, which will arrive in a month or so. It seems this fruit hits the market earlier each season.

VEGETABLES Generally it is roots again this month with yams, carrots, parsnips, swedes, the turnips including kohlrabi, celeriac, and main crop potatoes deﬁnitely good options at this time of year. Fennel bulb, onions, and of course leeks are all in the best condition this month but good garlic is bloody expensive. Artichokes (globe) The very ﬁrst globes, if we are lucky, will be in the

markets in a month or thereabouts with supply increasing over spring. The Jerusalem artichokes are available now and becoming more and more popular. They will be all over by October for another year. Asparagus The ﬁrst New Zealand new season spears will be here at the end of the month with any luck. Prices will be exorbitant but it has got to be better than the imported stuff we have been getting lately. Capsicums are mostly imported at present, strangely enough a lot coming to us from Holland of all places. Kumara All varieties of the last season’s crop are still in very good nick.

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AUGUST 2013 FMCG

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Eggs & Poultry New Zealand suppliers share their news, product developments and predictions. s. ECO Egg Co has just celebrated 20 years, which makes it one of the oldest dedicated free range and organic egg companies in New Zealand. The operation is based on the founder’s original production principles, which have not changed. The operation comprises of a network of individually contracted small scale producers of the company’s cottage-type specialty eggs, which are independently audited annually against the company’s strict production principles. Eco Egg products are supplied to most retail outlets all across New Zealand with over 250 supermarkets stocking the company’s eggs nationwide. Recently new markets in Asia were added to the company’s customer base with weekly orders being shipped by air freight to these destinations. The company’s main brands are: 1. Bio Eggs – free range organic certified (half dozen and dozen) 2. Eco Eggs – cottage-type free range (half dozen) 3. AWF Eggs – Animal Welfare Food free range (dozen).

FMCG AUGUST 2013

“Soon the company will launch some innovative value added egg products for commercial and retail markets,” says Mike Schellkes, managing director.

INDEPENDENT EGG PRODUCERS CO-OPERATIVE This national egg supplier is made up of several regionally-based owner/ operator farms specialising in the production and supply of quality, fresh eggs at a local and personalised level. A central office handles national agreements, e-commerce and administration plus marketing and promotional activities. Susan Bamfield, general manager explains: “Independent Egg Producers Co-op specialises in supplying the supermarket trade and has invested heavily in order to ensure that all product complies with current legislation and safety requirements. Each of the farms operates under a registered Risk Management Programme. The company prioritises supermarket customers in all activities including frequent merchandising and offer of surplus product when available.” Independent Egg Producers Co-op (IEP) offers a complete range of eggs including cage, free range, barn and organic. Bamfield says: “The company’s group brands comprise 19% and 23% market share of TKA by volume and value respectively (Aztec MAT to 30/06/13) and are also a key supplier of private label.” She adds: “The key performing brands are Morning Harvest (cage eggs), New Day (free range and barn product) and Sungold (free range organic). Over the past year the company has focused on better

utilising its full range of brands, hence giving customers the combination of great offers (within the bounds of market supply fluctuations throughout 2012/13) whilst maximising category value through structured brand marketing and dedicated customer service. Addition of 18- and 20pack products to the portfolio in conjunction with the appointment of a dedicated key accounts manager have been key features of the past year. “Whilst the total egg category continues to show growth (+3.8% by value), cage eggs remain dominant, comprising 62% and 78% share by value and volume respectively. The ‘free range’ sector continues to show growth (+13.5% by value) and now makes up 27% share of total eggs by value (in TKA). The New Day brand is consistently a top performer in this sector,” she says. In terms of market outlook, the greatest influencing factor is the new Animal Welfare (Layer Hens) Code of Welfare 2012, which requires transition from the current intensive cage housing systems to less intensive ‘enriched colony’ housing systems by December 2022.

eggs & p ostrap e u lt ry THE BREAKDOWN Current MAT to June 16, 2013 Total Frozen Poultry: $105.185m m Value % Chg vs YA -2.6 T. Processed Chicken $42.680m Value % Chg vs YA -2.7 T. Pieces Chicken: $29.155m Value % Chg vs YA 6.9 T. Whole Chicken: $28.020m Value % Chg vs YA -11.3 T. Whole Turkey: $3.531m Value % Chg vs YA -0.5 T. Processed Other Poultry: $1.289m Value % Chg vs YA -2.3 T. Cooked Chicken: $70.212m Value % Chg vs YA -2.6

Bamfield comments:â&#x20AC;&#x153;This transition requires investment of hundreds of millions of dollars across the industry and fluctuations in many aspects of supply are expected as the industry endeavours to fund and readjust to this major change. As a key supplier to the industry, IEP are committed for the long term and security of supply to key customers will become the priority over this period. â&#x20AC;&#x153;In the current economic climate, consumers continue to recognise eggs as an affordable (yet nutritious) alternative to more expensive proteins. The recent work undertaken by Eggs Incorporated (the generic marketing arm of the NZ egg industry) has reinforced this message, providing an eye-catching TV and on-line campaign focusing on the â&#x20AC;&#x2DC;scrummyâ&#x20AC;&#x2122; and nutritional benefits of eating eggs. In addition, consumers are increasingly looking to source â&#x20AC;&#x2DC;localâ&#x20AC;&#x2122; products supporting local communities, and thus Morning Harvest and New Day eggs, produced and supplied regionally by dedicated, hard working and enthusiastic poultry farmers are well positioned to meet this demand,â&#x20AC;? she says.

T. Fresh Chicken: $65.188m Value % Chg vs YA -3.4 Total Eggs: $167.674m Value % Chg vs YA 7.1 T. Standard: $105.377m Value % Chg vs YA 5.7 T. Free Range: $52.022m Value % Chg vs YA 12.6 T. Barn: $8.609m Value % Chg vs YA -3.5 T. Organic: $1.666m Value % Chg vs YA -3.3

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HENERGY CAGE-FREE IS ON THE MOVE â&#x20AC;&#x153;As the countryâ&#x20AC;&#x2122;s largest cagefree barn egg producer, Henergy Cage-Free is going from strength to strength,â&#x20AC;? says Trevor Friis, national sales & distribution manager. â&#x20AC;&#x153;With their range of eggs available throughout both supermarket groups the Henergy brand of packs is continuing to perform well in the market. In the two years to June 2013 non-caged sales have increased by 10%, whereas caged growth has been limited to 2.3% despite record production levels. The total key account market value for eggs is $173m with non-caged accounting for approximately 37% share. Cagefree barn eggs makes up 7.2% of total key accounts with the Henergy range of brands enjoying a 60.1% share of the barn egg segment in addition to a further 14% supplied as private label (Aztec data 23rd June 2013),â&#x20AC;? he says. The Henergy brand offers a choice of packs and egg sizes similar to that of mainstream caged eggs.This makes it easier for the consumer to trade up to non-caged eggs as they have familiar options available.

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AUGUST 2013 FMCG

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“Henergy is only too mindful of how important animal welfare issues are to a successful growing brand and the SPCA Blue Tick is now synonymous with the brand,” says Friis. Although supporting wildlife restoration for many years through the supply of eggs for trapping, more recently Henergy has proudly initiated a “Kiwi Supporter Program” whereby a donation from the sales of its most popular packs is going to Pukaha Mount Bruce for its forest wildlife restoration project. Brands supplied by Henergy CageFree include: Henergy, Simply Cagefree, Uncaged, Purely Free Range, Pams Cage-Free barn and Freedom Farms free range.

ZEAGOLD FOODS New Zealand has more than 120 egg farms – most of which are run by owner operators, or are family businesses. These farmers produce 1 billion eggs per annum from the 3.2 million hens they farm (source: Egg Producers Federation). Julie Williams, marketing manager says: “On a per capita basis we are 22

large consumers of eggs at 230 eggs per person per annum. In the last 12 months supermarkets sold 42 million dozen eggs worth $173.5 million dollars. This places eggs as the 18th largest category in supermarkets. “While it is a large category, it is also experiencing strong growth. Volume growth (dozens) in the last 12 months was +2.3% while value growth was even stronger at +7.2%. Driving this growth is the free range segment with value growth of +12.2% while cage egg value growth was a more modest +5.7%. While cage eggs are growing more slowly than free range eggs, they still make up three quarters of the volume sales,” she says. She adds: “Zeagold Foods continues to lead the egg market in New Zealand with a portfolio of quality and well-known egg brands, including Farmer Brown range of cage eggs and Woodland free range eggs. Testament to the strength of these brands is their continued market leadership in their relevant segments: In the last 12 months the Farmer Brown brand has gone from strength to strength achieving both volume

(+21%) and value (+25%) growth twice the growth rates of the total cage egg segment. Farmer Brown Size 7 dozen packs, is currently ranked number 1 selling SKU overall and has grown by (+13%) in the last 12 months. “Woodland free range brand continues to lead the strong growing, premium free range segment. It is the largest free range brand in supermarkets and is also growing faster than the rest of the market in the 12 months. Growth in last 12 months is +28% in value – over twice the growth rate of the free range segment.The Woodlands 10-pack free range product has grown to be the second largest selling SKU in the total category based on its sales in the last quarter. “Our newest brand in New Zealand supermarkets is Zeagold egg white, which is 100% pasteurised liquid egg white and sold chilled in convenient ready to use pouches. Sales of this product (based on the last quarter) have grown to an annualised $600,000 at retail value.This is an innovative and value added product, which is sought after by body builders and consumers interested in low GI, high protein diets.To find out more about Zeagold Foods, you can now visit us on our new website www.zeagold.co.nz. Source: Aztec to 14/07/2013

WAITOA FREE RANGE NOW SPCA ‘BLUE TICK FREE RANGE’ Product innovation and best practice farming has been at the forefront of Waitoa’s free range business growth and from August 1, all Waitoa free range products will carry the SPCA Blue Tick. Ingham was the first New Zealand free range chicken producer to carry farm accreditation, being FREPNZ accredited, in 2009. The move to the SPCA BlueTick certification provides consumers with the confidence that all products, whether fresh, fresh value enhanced, or packaged frozen, have been farmed and audited against the highest welfare and trusted SPCA Blue Tick standards.

FMCG AUGUST 2013

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cstara t epg o r y check For Ingham, this is all part of growing the free range segment and adding value to its wide range of poultry products. Following the launch of the first free range packaged frozen range, Waitoa Green Box in late 2012, this year has seen successful continued new product development. With the modern Kiwi family in mind, Waitoa Butterfly Chicken and Family Roast have been recently added to the range, expanding the fresh value enhanced segment. Both products are perfect 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 and the best possible free range farming, and see the shift to SPCA Blue Tick farm standards as a logical choice that supports our customers. The SPCA Blue Tick recognises and certifies the highest supply chain and farm welfare in New Zealand. This demonstrates our continued focus to deliver the quality of care in poultry management that delivers exceptional products that meet the market need. Working closely with our retail customers continues to ensure we deliver the right levels of innovation that builds demand.” Waitoa free range chicken, grown in the green sunny valleys of the Waikato region – now farmed and audited against the high SPCA Blue Tick standards, provides a quality of care that ensures exceptional quality

FMCG AUGUST 2013

free range chicken. “Waitoa and SPCA Blue Tick are marks you can trust,” says Gray.

SAVEUR “Our supermarket brand Saveur (French for flavour) has been in the market for close to 10 years,” says Lucy Meek – sales and marketing manager. The range has grown in this time with the initial product range consisting of whole birds, legs and breasts, but now the addition of Peking flavoured breasts, cranberry stuffed deboned roasts and duck fat. Meek says: “The latter is proving to be a huge seller. In selected retailers there is also smoked duck breast. New product development is important to keep up with overseas trends, as well as looking after our regular buyers of duck.” At the beginning of the year Saveur added a cooked range of products. There are three products in the range: Peking Duck Wrap Kit, Peking Duck Salad Kit and Confit Duck Leg (pictured below). Meek comments: “There were two main reasons for introducing a ready-to-eat range. Firstly, to reward existing duck fans with exciting new dishes and the convenience of prepared meals.

Secondly, to encourage those who are not currently cooking or eating duck to give it a go. There still seems to be the myth that cooking duck is rocket science. “The range has been well received and there has been steady growth. What is pleasing, is the number of people who are now trying duck for the first time, very surprised with the fantastic flavour. “There is a growing trend for high end gourmet meals that require some assembling, but little or no cooking. Consumers are attracted to quality ingredients, visually appealing products and rewarding results. The kits and confit are also great for entertaining. “We were very pleased to see the Peking Duck Wrap Kit win gold in the recent Pride in Print Awards. Thanks to our designer Susannah Fields and Service Printers,” says Meek.

TEGEL Tegel is New Zealand’s largest poultry producer providing a range of brands that span across the supermarket aisles and categories. “It is our mission is to help New Zealand households make delicious, convenient and wholesome meals for the entire family,” say marketing

eggs & p ostrap u lt ry Consumers are becoming more conscious about the ingredients they eat and where their food comes from. managers Tania Kirkpatrick and Brenda Galbraith and assistant category manager, Mark Churton. They explain: â&#x20AC;&#x153;Within the Tegel brand stable we have the Rangitikei Corn Fed Free Range,Top Hat, Good Life and a variety of sub-brands that operate under the Tegel umbrella.â&#x20AC;? In the last 12 months Tegel has launched the Tegel Meal Maker Range, Tegel Hot Legs and Nibbles, a new Satay variant to the Tegel Wrap Range and a new Southern Style variant to the Tegel Take Out Range. â&#x20AC;&#x153;The Tegel Meal Maker Range showcases the versatility of chicken, providing consumers with a convenient ready-to-eat meal solution. Since launch, this range has gone from strength to strength. For the quarter to 30/06/13 the range delivered $950,000 in scanned sales, so it is on track to be worth $3.8M for the full year (Aztec 30/06/13). â&#x20AC;&#x153;The Tegel Wrap Range is a constant performer in the butchery department with $ growth of +20%

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(Aztec MAT to 30/06/13). Variants within the range are inspired by exotic flavours from around the world. The next stop on the â&#x20AC;&#x2DC;wraps journeyâ&#x20AC;&#x2122; is Malaysia, with Tegel Wraps - Satay Chicken. Launched early July, Satay has gained good traction with consumers and is challenging Spanish, Mexican and Italian to be the most popular SKUâ&#x20AC;&#x2122;s in the range. â&#x20AC;&#x153;In the grocery freezer there is exciting news for the Frozen VA Adult Chicken Category (worth $22.6M (Aztec MAT 30/06/13). At the end of July, Tegel launched another variant in the Tegel Take Out Range. Southern Style is a proven flavour and hugely popular within fast food chains.The latest variant will balance the range for teen snacking and meals.â&#x20AC;? Consumers are becoming more conscious about the ingredients they eat and where their food comes from. The Tegel team comments: â&#x20AC;&#x153;We have acknowledged this trend through the launch of the â&#x20AC;&#x2DC;Good

Lifeâ&#x20AC;&#x2122; brand. This standard grain-fed free range brand complements our current Corn-Fed Rangitikei range, expanding our free range offering. The catch phrase: â&#x20AC;&#x153;Live the Good Life. Our Chooks Doâ&#x20AC;? and our SPCA Blue Tick accreditation assures consumers that â&#x20AC;&#x2DC;Good Lifeâ&#x20AC;&#x2122; chickens are free to roam outside of the barn.â&#x20AC;? Traditionally consumed during the Christmas period, turkey is becoming more popular throughout the year as a treat when celebrating special occasions, entertaining friends, or for the â&#x20AC;&#x2DC;Sunday roastâ&#x20AC;&#x2122;. The latest addition to Tegelâ&#x20AC;&#x2122;s turkey range is the Tegel Free Range Frozen Turkey Boneless Roast 1.8kg. A whole boneless Turkey roast handcrafted with cranberry stuffing and marinated to enhance texture and flavour. It comes in a deep, foil tray, ready for the oven. Proudly displaying the SPCA blue tick, consumers can be assured Tegelâ&#x20AC;&#x2122;s Free Range Turkeys have been farmed in accordance to the SPCAâ&#x20AC;&#x2122;s free range standards.

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International flavours What’s on trend in ethnic flavours and the international foods aisle? FMCG talked to some of the suppliers in this category. WITH a large number of new ethnic restaurants offering diners a more authentic experience and new flavours, consumers are becoming more experimental. And Mexican food seems to be one of the most popular new trends. Keezia Haste, senior brand manager, General Mills, comments: “What we now need to do is ensure that we capitalise on this trend in store and ensure we bring Mexican top of mind with the right offering. Old El Paso invests over $1million a year to ensure we are reminding consumers about Mexican and driving them into store. And the out of home trend is definitely helping with making Mexican more familiar!” General Mills’ portfolio includes Old El Paso, Betty Crocker, Nature Valley and Latina Fresh. Old El Paso launched an Extra Mild Super Tasty range in March 2013, including a hard and a soft taco dinner kit. Haste says: “One of the biggest barriers to Mexican food is the perception of spice and this range directly addressed that barrier. This product included a stir-in sauce and a cooling herb seasoning mix, which is different to our current range (that includes salsa and spice mix both which have connotations of heat). “This launch was supported by TV advertising to drive awareness of this new non-spicy range, as our target market for this range currently did not shop the Mexican aisle; they believed it was too spicy for 26

FMCG AUGUST 2013

their families. It is still early days for this range, however early signs are promising and penetration results definitely show that since launch we have brought new people into the category.” Haste says: “In-store the Mexican category is growing at 5.4% and Old El Paso is driving that at 5.9% dollar growth*. To maintain and drive further growth in Mexican and really capitalise on the trend we need to bring innovation to the market and in August 2013 we will be launching a new ‘squeeze’ and a Rice Kit range. The squeeze range includes Guacamole, Sour Cream, Chunky Salsa and a Taco Sauce. It’s perfect for families and kids will love it. It’s been extremely successful in other markets, including the UK.” The Rice Kit range includes a Chili & Garlic variant and an Extra Mild, Super Tasty Lime & Coriander variant. Haste explains: “The aim for this range is to extend Mexican meal occasions beyond tacos and burritos. It’s really about bringing Mexican meals into mid-week and allowing consumers to enjoy the unique flavours that Old El Paso brings in a different way. This range will be supported by TV and a strong instore activation plan.” She adds: “A Mexican shopper is a very valuable shopper as they have to shop across various departments to complete their basket. Stores that have supported key NPD launches and price promotions with displays

eth n ic f ostrap ods THE BREAKDOWN Current MAT to June 16, 2013

around the meat or fresh department have really seen the results, not only in Mexican but across the store.” She adds: “New Zealand has predominantly been a ‘burrito market’, however tacos deliver choice and authenticity and we can see in the latest quarter that tacos as a meal centre are growing at 24.4%*. Old El Paso has a large range of taco products and our latest NPD (Extra Mild Super Tasty) and our activation plans have been focused on tacos.” * Aztec Dollar Growth Quarter to 09/06/13

HOUSE OF FINE FOODS House of Fine Foods introduced the Passage range of authentic international cooking sauces to the NZ market in 2010, beginning with the Passage to India range. The success of this range led to the introduction of Passage to Morocco and then the Passage to Asia range in August 2011. Brett Tibbotts, general manager explains: “The initial Passage to Asia and Passage to India ranges proved so popular that they were quickly extended and now include Passage to Thailand, Passage to Japan, Passage to Malaysia, Passage to Indonesia and Passage to China as well as Mango Chicken Sauce, Balti Curry, and Madras. “In March of this year we introduced Passage to Sri Lanka Chicken Curry and Coconut & Cashew Chicken. New recipes coming soon include two varieties of Noodle Partners (Singapore

Noodles Stir Fry Sauce and Mee Goreng Stir Fry Sauce) and also Passage to Vietnam (Vietnamese Lemongrass Chicken). “The founders of Passage Foods believed that most of the high convenience meal solutions available just didn’t deliver on flavour or quality. These days we have less time than ever to prepare the evening meal. At the same time the modern consumers’ palate is more discerning than ever,” says Tibbotts. Chris Doutre (chef and creator of Passage Foods) says,“We are constantly working with specialist chefs to create a range of truly authentic, high quality and convenient international cooking sauces for the retail market. They believe in the importance of using only natural ingredients with no added flavour enhancers or preservatives to provide an authentic healthy taste that also suits a gluten free diet.”

SEALORD Sealord has just launched Tuna Stir Thru in Red Curry, Green Curry and Italian Sauce, making a perfect lunch when added to rice or pasta. “Priced at the value end of the market at RRP $1.49, the two curry products reached 80% distribution within one week of launch (Aztec on web 7/7/13),” says Nikkola Mathews, who is in charge of marketing the ambient products of Sealord New Zealand. “We have seen growth within the ethnic flavours in canned fish over

T. Asian Simmer Sauce: $23.217m Value % Chg vs YA 4.9 T. Mexican Foods: $24.113m Value % Chg vs YA 4.2 T. Carriers: $11.430m Value % Chg vs YA 4.9 T. Kits: $7.605m Value % Chg vs YA 3.2 T. Ingredients: $5.078m Value % Chg vs YA 4.1 T. Dry Herbs and Spices: $30.836 Value % Chg vs YA 6.1 T. Wet Herbs and Spices: $10.383m (Includes curry pastes) Value % Chg vs YA 2.8 T. Curry Powder: $2.643m Value % Chg vs YA 1.7 *Nielsen New Zealand ScanTrack (Databank)

the last few years and in particular Thai flavours are driving that growth. Sealord’s ‘Tuna In’ range, which includes Red and Green Curry, is in growth, selling 12.4 and 10.3 units/store/week respectively (Aztec 07/07/2013),” she says. This month Sealord’s new Heat & Eat product will be launched. Mathews says: “With six new meals that take only 45 seconds to heat in the microwave they are a perfect lunch option. Ethnic flavours include Italian Pasta and Tuna, Satay Tuna and Rice, Teriyaki Tuna and rice, Red Curry and Green Curry with Tuna. All are packed with protein and omega-3 goodness.”

AUGUST 2013 FMCG

c a t e g o r y check

Health & Beauty Are you ready for summer? Sunscreens and depilatory products will be in hot demand as the days get longer and warmer.

LAST year saw the launch of the Surf Life Saving 50+ Sunscreen, which was very well received by both the trade and consumers. Its fragrance free formulation is moisturizing, light and non-greasy and will rub in very easily without leaving any white film on the skin. Kate Feek, senior brand manager says: “It is a concise range, offering a SPF 50+ UVA/UVB broad spectrum formulation in different sizes to meet the needs of consumers. This season we are introducing two additional items to the range: A 250ml spray bottle and a 1L pump bottle. “We often take it for granted that the Surf Life Savers are out there every day during the summer to keep us safe between the flags, so it is very easy to forget that Surf Life Saving is a charity that needs funding via donations. That is why it was such a perfect opportunity to bring a sunscreen brand to market that not only helps protect our skins, but also raises money for the charity. 28

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Every item sold raises $1 towards Surf Life Saving.” In terms of new trends, Feek says: “The recent updates within the Australian standards to be able to now supply a 50+ formulation reflects the growing awareness to be as sun smart as possible. Our focus for this coming season is to continue to increase awareness for the need to use a good sunscreen, particularly if we have another amazing summer like we did last year, and at the same time help raise funds for an iconic Kiwi institution.”

API CONSUMER BRANDS API Consumer Brands took over the distributorship of the Cancer Society Sunscreen range in late June 2012, just in time for the 2012-2013 summer season kicking off. “And what a great summer it was to start off with, with the market growing 20% for the season (6 months ending 24th March 2013) vs the prior year,” says Suzanne McKandry, senior

brand manager API. She explains: “The market’s growth was helped considerably by a great end to the season with March producing stunning weather, resulting in +85% (vs. March LY). “Cancer Society is the number two brand in the market with a 22% share and plays a very special role in the category and for New Zealanders. Proceeds from the sale of every Cancer Society Sunscreen go directly towards helping the work the Society does. It is a not-for-profit organisation and an independent charity that receives no government funding. “The highly valuable and necessary work carried out by the Cancer Society, such as world class cancer research, community education, patient services and more, is funded by caring New Zealanders through a variety of ways, including the purchase of sunscreen which contributes considerably to the Society’s work,” she says.

sunscre e n s & depilat ostrap rie s THE BREAKDOWN Current MAT to June 16, 2013 Total Sun Care: $21.206m Value % Chg vs YA 12.7 T. Sun Screen Preparations: $14.544m Value % Chg vs YA 16.4 T. Lip Salves: $5.710m Value % Chg vs YA 4.0 T. After Sun/Sunburn Remedies: $0.489m Value % Chg vs YA 7.5 T. Artificial Preparations: $0.463m Value % Chg vs YA 25.8 Total Shaving Depilatory: $60.587m Value % Chg vs YA -0.5 T. Razor Blades Male: $19.957m Value % Chg vs YA -1.0 T. Shaving Preparations: $9.839m Value % Chg vs YA -2.6 T. Disposable Razor Male: $8.734m Value % Chg vs YA 9.2

McKandry adds: “Skin Cancer is New Zealand’s biggest cancer killer, with more than 400 people dying every year. Skin cancer is largely preventable. Over 90% of all skin cancer cases are attributed to excess sun exposure. Some of these 400+ deaths could have been prevented through better SunSmart behaviour and education, something we will be driving home hard this summer, through both our new on-pack

T. Razor Blades Female: $5.667m Value % Chg vs YA 1.4 T. Depilatories and Accessories: $5.402m Value % Chg vs YA -1.3 T. Disposable Razor Female: $4.964m Value % Chg vs YA 12.0 T. Razor System Male: $3.926m Value % Chg vs YA -12.5 T. Razor System Female: $2.048m Value % Chg vs YA -21.0 T. Double/Single Edge Blades Male: $0.048m Value % Chg vs YA -3.0 *Nielsen New Zealand ScanTrack (Databank)

messaging and our new marketing activity programme.” With API having one season under its belts and some insights in the category, it is launching a newly refreshed range to the market for summer 2013-2014. “NZ has the harshest UVA and UVB rays in the world and we have developed a new SPF 50+ range to specifically suit the NZ sun conditions,” says McKandry.

The range sees the introduction of a new SPF 50+ EVERYDAY range, which is suitable for the whole family. The range now features some great consumer benefits such as being dermatologically approved, dry touch, paraben free, formulated with natural plant and mineral extracts and offering four hours water resistance, to name a few. McKandry says: “Children’s sunscreen is worth 15% of the

AUGUST 2013 FMCG

cstara t epg o r y check

total sunscreen market and it grew considerably last season, +40% vs. the prior year. On the back of this trend, Cancer Society is launching a new SPF 50+ KIDS PURE range. Not only does it feature all of the benefits of the SPF 50+ EVERYDAY range, such as being dermatologically approved and paraben free, it is also colour free and fragrance free. The new SPF 50+ KIDS PURE range offers a low irritant formulation that parents can trust for active Kiwi kids. “Not only did the children’s segment see great growth last season, sunscreens tailored specifically for the face also grew. Face specific sunscreen is worth approximately 9% of the sunscreen market and grew a significant +23.0% vs LY.

To boost the new offerings Cancer Society is launching this season, the range will include a new mattifying and moisturising light feel SPF 30 face product. “As the market continues to segment into specific need based sunscreens more and more, Cancer Society will also launch a new SPF 50+ ACTIVE product, featuring mineral zinc. Mineral zinc oxide is a safe mineral that sits on top of your skin, absorbing and scattering UVA and UVB rays before they reach your living cells. Mineral zinc oxide is considered one of the safest and most effective active sunscreen ingredients and is ideal for those people who will be playing sport and spending lots of time at the beach – in direct sunlight for long periods of time, however like all sunscreens, needs to be applied and re-applied frequently. “With your support, Cancer Society is set for a great summer,” says McKendry.

BLISTEX It is important to take daily care of your lips to prevent chapping and moisture loss, but it is also very important to protect the lips from the sun. Sara Williams of Wilson Consumer 30

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says: “Blistex lip care range provides not only the comfort of intense moisturisation on dry lips but also provides a high SPF factor in most products. Lips needs protection all year round and it is often an area on the body that people neglect when applying sunscreen. When the sun causes lips to burn, long lasting damage can occur. When unprotected lips are exposed to too much sun, the collagen changes, causing lips to wrinkle and fine lines to form around the mouth. Even when lips show no physical signs of the sun’s effect, damage can occur. Just because you don’t see a surface burn doesn’t mean that the underlying layers haven’t been harmed. Blistex products are serious about sun protection, which is why they have an SPF of at least 15 in almost all of their balms and pot products. Other Blistex products are considered healing products that help to repair lips that have already been damaged by the elements. Blistex Ultra Lip Balm provides the highest lip protection from the sun with an SPF30+, it not only keeps the lips looking and feeling good but gives you the ultimate protection in summer and winter where the sun can reflect off the snow onto the face and lips.”

SURF LIFE SAVING + SPF 50 SUNSCREEN Making a splash this summer!

+HOS RXU 6XUI /LIHJXDUGV NHHS \RX VDIH EHWZHHQ WKH Ã± DJV WKLV VXPPHU

$1 FROM EVERY SUNSCREEN SOLD GOES TO SURF LIFE SAVING NEW ZEALAND &RQWDFW \RXU %'0 *UDQJH UHSUHVHQWDWLYH WR Ã° QG RXW KRZ \RX FDQ VXSSRUW WKLV LFRQLF Kiwi charity in store through ranging and displays Very High Protection â&#x20AC;¢ 4 Hours Water Resistant â&#x20AC;¢ Fragrance Free â&#x20AC;¢ Moisturising â&#x20AC;¢ Non-Greasy â&#x20AC;¢ No White Streaks â&#x20AC;¢ Paraben Free $OZD\V UHDG WKH ODEHO XVH DV GLUHFWHG 0DQXIDFWXUHG WR $XVWUDOLDQ 6WDQGDUG $6 1= ZZZ VXUÃ± LIHVDYLQJ RUJ Q] %'0 *UDQJH /WG $XFNODQG

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VEET After a successful launch of the Veet EasyWax Electrical Roll On Kit into Progressive for grocery and selected pharmacies last year, Veet EasyWax is launching into Foodstuffs this summer. The Veet EasyWax Electrical Roll-On kit is designed for legs and arms and removes hair from the root as short as 2mm. Formulated with the same ingredients as the waxes used in beauty salons, such as natural beeswax, it is suitable for all skin types (including sensitive) leaving the skin feeling moisturised and impeccably smooth for up to four weeks.

“Veet EasyWax has seen phenomenal success and has significantly grown the hot wax segment (+37% MAT), contributing to almost 97% of hot wax segment growth (Nielsen, w/e 16/06/13),” says Nicola Nashed, senior brand manager, Reckitt Benckiser. “EasyWax has driven Veet growth, making Veet the only depilatories brand currently in growth (+4.5% value MAT w/e 16/06/13. Nielsen). In less than a year since its launch, the Veet EasyWax Kit and Refill combined is already worth $334K value in Progressive alone (MAT to 16/06/13). This summer we expect

“Veet EasyWax has also been a global success with strong performance in all markets. It is a true innovation that has revolutionised the way women remove hair and offers a compelling trade up for the consumer.” Nicola Nashed, personal care senior brand manager, Reckitt Benckiser The kit comes with the selfheating device and a wax cartridge that clicks into place, warming the wax to the right temperature every time. The roll-on applicator ensures the wax evenly glides on as a thin layer. Once applied, the wax is removed in one swift motion using the Veet reusable strips provided.Wax refills are available and come with reusable strips. The Veet EasyWax Electrical Roll-On Kit is priced at RRP$39.99 and Veet EasyWax Refill at RRP$17.99. 32

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even stronger sales and growth as Veet EasyWax will roll out into the Foodstuffs accounts and we will see a returning refill stream,” she says. “Veet EasyWax has also been a global success with strong performance in all markets. It is a true innovation that has revolutionised the way women remove hair and offers a compelling trade up for the consumer. Veet EasyWax is a product that has significantly differentiated itself in the depilatories category which was in much need of new news,” says Nashed.

She reveals that Veet will also be combining forces with a couple of well-known brands and running an exciting gift with purchase promotion that is a first of its kind for Reckitt Benckiser NZ. What are the consumer trends in this category, in her experience? “There’s an established trend from professional to in-home beauty treatments. As technologies improve, they appeal more to the mass market as it is much more affordable without compromising results. This trend is also evident in the female hair removal category as the launch ofVeet EasyWax has been largely incremental to the Veet portfolio. At $39.99 for the oneoff cost of an EasyWax kit (includes the device and refill), it is comparable to the prices women would pay at a salon for one waxing session. And at $17.99 for a refill that is sufficient for up to four uses*, this equates to $4.50 per home waxing session, which makes the on-going cost of using Veet EasyWax much more cost effective than going to a salon. “Consumers are also seeking personal care brands that they can connect with emotionally, trust as an expert and that they can fit into their lifestyles. This summer, Veet is running a unique gift with purchase promotion that truly taps into the lifestyle of our target consumers. We are also currently undergoing a packaging re-design to strengthen Veet’s beauty credentials and brand equity. With a modern and fresh look that is rolling out to stores in the next few months that will also improve variant navigation at shelf, we aim to be seen as a true beauty brand.” *One use is defined as one depilation session of both half legs.

Perfect Temperature EasyWax Electrical Roll-On Kit ™

Find out more at veet.co.nz

Perfect Layer

Perfect Results

EasyWax Reﬁll ™

Nielsen Product Advisor Study 2010 (France), 176 women.

Irresponsible claims Consumers are more important than a headline, says Katherine Rich. THE newspaper headline was enough to make any parent choke on their cereal: “A sweet a day helps kids grow up violent”! The intro was even worse: “Banish the chocolate bars and lock up the gobstoppers - letting your children eat sweets could turn them into serial killers, according to psychiatrists.” Scary stuff, although far from what the British study being quoted actually found. But that’s never stopped some in the media from doing everything they can to find a good headline. The food and beverage industry, by its nature, is a very precise industry. 34

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It has to be, because it is providing products that are sensitive in many ways – to time, light, temperature, purity, weight, measurement and ingredient balance. It also has to be precise in what it says on its labels, down to the last syllable. Get just one of those slightly wrong and the consequences can be significant. That’s why our industry is guided by a maze of codes and regulation and legislation, even though it is often its own best regulator and for the most part does not need to be told what to do to produce safe food. So it’s a real pity that those in a

position to influence the public do not exercise the same degree of self-regulation and accuracy when they cast a critical eye over the food industry. Some recent examples which have involved Food & Grocery Council members are stark reminders of this. First, there was Consumer Magazine’s likening of muesli to corn chips as a breakfast substitute because of the fat, salt and sugar content. Not only was this misleading, it was an irresponsible claim by an organisation which has a good deal of public trust. The comparison was made after extreme

fgc

results of one of the muesli brands tested. But despite the fact that most muesli contains many of the nutritious ingredients we need for a balanced diet – fruit, nuts, and cereals, none of which corn chips contain – it still made for a good newspaper headline: “Muesli is as good as corn chips”. Actually, it was stupid. Then there was an article in the NZ Herald which highlighted 18 food colour additives supposedly “banned” in other countries and which were, according to the story, the cause of all sorts of serious sideeffects, from birth defects to foetal deaths, cancer, and chromosomal damage. Under the heading “Growing calls for NZ to have own food standards”, the story created the impression that our food regulatory system, set by Food

Standards Australia New Zealand, was out of step with the rest of the world and that consumers were at risk of serious harm. The story was a classic reminder that, though Google is an excellent search engine it is not a substitute for official sources. The story contained over 70 factual errors and FGC showed that almost without exception the additives were not banned in the countries listed and had been regularly evaluated by independent scientific experts as being safe. The Herald published a correction. Television programme Fair Go was the next to get it wrong in a bid for a good headline, when it aired a programme on olive oil, which it had subjected to tests by a panel which it said was accredited by the International Olive Council. But FGC member William Aitken & Co, which imports one of the oils tested, complained to the Broadcasting Standards Authority that they had told Fair Go that the panel was not accredited but they had ignored it. The complaint was upheld. The latest organisation seemingly not interested in the facts is the Australian consumer watchdog Choice. They investigated 23 brands of liquid breakfast products, and then accused Australian and New Zealand manufacturers of making “shonky” health claims, saying: “Shonky claims on liquid breakfasts such as ‘high in fibre’, ‘fibre for digestive health’, and ‘goodness of three grains’ is a cause for concern. Liquid breakfasts have on average 1.5% fibre, which is well below the 10% benchmark for high fibre.” You can imagine that such language attracted interest, with

some Australian media and food websites lending further credence to the claims with headlines such as “Consumer group outs ‘shonky’ liquid breakfast brands”, and “Liquid breakfasts a ‘washout’ says Choice”. The problem was that Choice’s claims were misleading in the extreme. The facts told a different story, but one not so headline-grabbing. Fresh standards to regulate nutrition content and health claims on food labels were gazetted under the joint Australia New Zealand food regulations earlier this year. As is normal, companies have three years to make changes to products and packaging due to the number of products and the complexities of the changes. Despite this, Choice analysed claims on the packs of liquid breakfasts against the new standards, even though they had been in effect for just months and there was no way most products would have had time to comply. In choosing the path it did, Choice did not even have to mention the very relevant fact that all of the products it tested complied with currently legal and fully compliant health claims. Its attack was worse than just a case of unfair and sneaky food politics (which it was) in which the plan is to grab the best headline. In doing what it did it shot itself in the foot by misleading those it professes to help – consumers. Precise reporting is important because otherwise consumers can be misled or unnecessarily frightened. The desire to interest a reader through a good intro and headline should not trump the truth.

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

www.fgc.org.nz AUGUST 2013 FMCG

w hat ’s hot VEET EASYWAX The Veet EasyWax Electrical Roll-On is a home waxing system that lets you achieve salon wax results at a fraction of the price. The cartridge designed for legs and arms clicks into a self-heating applicator, warming the wax to the right temperature every time allowing it to glide on evenly. Finally a Sausage Roll that doesn’t have an ingredient list like a NASA space experiment! Wrapped in our special sour cream pastry and made with real free range meat (not mechanically engineered goop). Our rolls are packed full of lovely ingredients you know and trust. They contain no nasties – no artificial flavouring and colourings, no MSG and no added preservatives. Available in two delicious flavours, they are a perfect new oﬀering for your chiller.

Formulated with natural beeswax for all skin types, including sensitive, Veet EasyWax leaves your skin silky smooth for up to 4 weeks.

Veet EasyWax Electrical Roll-On Kit RRP $39.99 Veet EasyWax Arm & Leg Refill RRP $17.99.

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

For more information, contact your local Reckitt Benckiser Rep. www.veet.co.nz

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SEALORD INTRODUCES HEAT & EAT

A styling range that equips your shoppers with the tools to express themselves. The new Give Me Texture Instant Oomph Powder creates immediate volume & grip at the roots with a matte finish. Fantastic for giving fine hair a great big boost!

Contact your Unilever representative for more information

FMCG AUGUST 2013

Sealord are re-launching the Deli Menu ready meals range as Sealord Heat & Eat. The Heat & Eat range includes 6 SKU’s with new improved formulations as well as two new flavours, Thai Green and Red Curry. Heat & Eat is targeted at oﬃce workers as a convenient nutritious lunch ready in just 45 seconds. With a RRP of $3.99 it oﬀers a substantial meal at a sharp price point. Contact details: Nikkola Mathews ABM- Sealord Ambient Nikkola.mathews@sealord.co.nz

what’s hot ALEXANDRA’S EXTEND POPULAR MOROCCAN COUSCOUS RANGE Following on from the successful Moroccan Couscous 15 minute meal range, Alexandra’s have added a new flavour Mushroom and Pine Nut. Along with the other three flavours, Alexandra’s Moroccan Couscous oﬀers a gourmet meal with all ingredients included in a clear stand-up bag.

Ph 09 5704739 enquiries@alexandras.co.nz www.alexandras.co.nz

DEMAND FOR ORGANICS CONTINUES TO GROW..! Keep your Organic shelves full this year. Our mutual customers are more sophisticated and discerning, and understand the conflicting information and standards. FRENZ Free Range and Organic Eggs are the industry leaders. Healthy hens, warm sunshine, clean fresh air, lush green pastures. No antibiotics, no pesticides, no artificial colour! Strong brown shells and rich golden yolks! Naturally. P: 0800 373 697 (0800 FRENZS) W: www.frenzs.co.nz E: info@frenzs.co.nz

CRIKEY THIS IS CLEVER! Flemings is bringing the sweetest bits of NZ into the Wrapped Snacks aisle. Introducing 3 great tasting iconic Kiwi flavours to appeal to the whole family: •

Kiwi-Licious Pineapple Chunks

•

Kiwi-Licious Rocky Mallow

•

Kiwi-Licious Hokey Pokey

Shoppers are looking for taste in the Wrapped Snacks aisle! With standout packaging Flemings innovative new Kiwi-Licious range will drive sales. Don’t miss out on this mouth-watering opportunity! For further information ph 0800 730 123

THE NEXT GENERATION IN SUGARFREE MINT GUM Mentos are redefining what everyday fresh breath means to consumers by launching the new, innovative, sugarfree Mentos Pure Fresh. The promise? Delivering pure breath confidence anywhere, anytime. The support? Thanks to green tea extract that helps to refresh your breath. Pure Fresh = Pure Breath! Talk to your DKSH New Zealand Limited representative today to drive your gum sales further! AUGUST 2013 FMCG

gro cer y bus ine ss MOBILE DEVICES DRIVE ONLINE SHOPPING Mobile devices such as smartphones and tablets are driving online shopping in New Zealand, according to Nielsen. The leading global provider of information and insights recently released a report that has found 45% of the 1.8 million Kiwi online shoppers researched goods and services on a mobile device. A further 26% made an online transaction (288,000 people via a smartphone and 239,000 via a tablet). Tony Boyte, associate director of Research, Nielsen said: “Mobile devices are paving the way for more New Zealand consumers to shop online from a variety of locations, it’s convenient and immediate. Ever increasing wireless broadband take-up and 4G roll outs over the coming year should help fulfil the strong potential for mobile shopping”. Nearly two thirds of tablet owners have made a purchase online (items not for use on the device itself) and 19% of smartphone owners. Boyte sees an opportunity here: “With 1.7 million New Zealanders owning a smartphone and currently less than a fifth of those using the device to make a transaction, there’s definitely room to grow this market. Businesses need to be where their customers are and make the process intuitive. Optimising content through mobile-specific sites is key to achieving this”.

The latest research revealed that 26% of online shoppers have started their research for a particular item on one device (smartphone, tablet or PC/laptop) and then continued their research or completed their transaction on another device. It also shows that shopping via a smartphone is taking place throughout the day, whereas tablet usage increased in the evening. Nielsen’s Online Retail Report provides New Zealand’s only in-depth information on the nation’s online retailing. It is an annual measure of e-commerce activity, shopping patterns and consumer confidence. ●

FONTERRA UP-SKILLS SALES STAFF Over 20 of Fonterra’s sales representatives, territory sales managers, and account executives have just graduated from the National Certificate in Sales Level 3, at a ceremony held in Auckland. These were the first graduates in the FMCG industry to complete the sales qualification. Fonterra have a further 56 staff across Level 3 and 4 who are about to graduate, with another 60+ staff starting training in October. Kelly Smith, training and development consultant for Fonterra, says the company decided to train for two key reasons: “To increase the capability of their sales team and to invest in development of its people for future roles.” As a result of the training Fonterra has seen many benefits including increased sales, increases in coalface survey results (a Customer Satisfaction and Shopper Evaluation survey), improved commerciality and selling ability, and increased confidence and capability within the team. After completing the National Certificate in Sales Level 3,

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At the graduation ceremony: (L to R) Leigh Parker, Sharon Mitchell and Baden Ngankee.

many staff are now progressing on to the Level 4 Sales qualification. Fonterra also have merchandisers starting the National Certificate in Retail Level 2. All qualifications are managed by industry training organisation Competenz, whose programmes have been designed in collaboration with industry partners to meet the specific needs of the Food & Beverage industry. ●

g rocer y busi n ess NEW RECYCLING SYSTEM FOR NEW ZEALAND TerraCycle, a global upcycling and recycling company has arrived in New Zealand and any individual or organisation can join this free programme to collect and recycle confectionery wrappers, while also earning much needed funding for charities. Through TerraCycle’s new programme consumers can send in their empty confectionery wrappers to TerraCycle to be recycled into affordable, sustainable consumer products and building materials. This is the ﬁrst time TerraCycle’s recycling system – which already operates in 23 countries including the US, Canada, Brazil, Europe and the UK – will be available in New Zealand. The Confectionery Wrapper Brigade is a free programme that allows any individual or organisation to collect and return used confectionary wrappers and lolly bags at no cost. For every confectionery wrapper returned, TerraCycle will make a donation of two cents to the school or charity organisation of the collector’s choice. Interested parties can easily register online. When a location is set up, simply collect the used confectionery wrappers in any box and return via freepost to TerraCycle, who checks and stores it at a local warehouse. This waste is recycled into a wide variety of applications ranging from ﬂowerpots to recycling bins. There are different types of Brigades for different types of waste, for example one for confectionary wrappers and one for juice pouches. Globally, TerraCycle runs programmes to recycle over 75

different types of rubbish, including cigarette butts, chewing gum and coffee capsules. “Our team at TerraCycle is thrilled to be setting up operations in New Zealand, we believe our free recycling programmes will be of great interest to consumers across the country,” TerraCycle CEO, Tom Szaky. says CEO and founder Tom Szaky. “We hope New Zealanders will get right behind this innovative programme and support charities and schools at the same time,” he says. Szaky is an acclaimed entrepreneur at 31 years of age. He dropped out of Princeton University to found TerraCycle, a company that started by selling an organic fertiliser made from worm droppings in reused soft drink bottles. In addition to turning non-recyclable waste into useful products, TerraCycle’s Brigade programmes are an effective way to educate and engage people around resource conservation and sustainability. TerraCycle provides free DIY projects and educational resources. To date, TerraCycle has donated more than $7 million to charities and non-proﬁts around the world and kept more than 2.4 billion pieces of waste from landﬁlls. ●

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we represent. Our Merchandisers and Sales Support staff cover Kaitaia to Invercargill and the team’s love of their jobs and satisfaction in all that they do is reflected in a staff turnover rate lower than the industry norm. Territory Managers’ utilise the latest in technology, with iPad’s that contain catalogues, price lists and deal sheets for Buyers’ to view. The recent introduction of SalesLink Cube, a web-based sales entry system, has given the Territory Managers access to online ordering, stock monitoring, compliance checking and it also provides ‘real time’ data for our customers.Our sales force is currently undergoing NZQA-approved training and upon completion the team will be one of the first in the industry to achieve the National Certificate in Sales – Level 3 qualification. To discuss how we can assist you achieve your vision and grow your business, please contact us in confidence.

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AUGUST 2013 FMCG

Lights, camera, cook! An FMCG sector supplier sees a niche in ‘stylish kitchen hire’. IT’S a hard day’s work to create several new recipes, style them and shoot them for editorial, packaging or promotional purposes. Many ducks must line up in an orderly fashion to make the most of precious photographer and food-stylist time. Rafael Caso of Brandhub says: “Some great recipes are beautifully crafted and then photographed in someone’s home kitchen, but half the time the family arrives back (to the borrowed or hired kitchen) before the shoot is finished. The kids are hungry, mum is tired…they want their space back, but producers and stylists are still hard at work. In a word: Awkward! “I even recently heard of a stealthy little family terrier running off with the chef ’s lamb shank, pre-shot! Needless to say, that unexpected canine intervention messed with the creative schedule terribly,” he says. New Zealand is indeed a little short of gorgeous, spacious hirekitchens that are ideal, functional locations in which to shoot culinary content for stills or TVC. But Brandhub thinks they have cooked up the solution. “Brandhub are a specialist design and pre-press company that help the

FMCG AUGUST 2013

likes of Tegel,Villa Maria, Sanitarium and other great FMCG brands, to simplify the complexities of artwork creation for FMCG packaging and beyond,” says Caso. Brandhub set out to design and install a unique kitchen space where creatives and brand managers can come together to create and style culinary delights, then shoot them. All in one hub. The Number 8 Kitchen is a contemporary commercial kitchen crossed with a photography studio. And it’s available for hire. This is a camera-ready kitchen designed by a top New Zealand kitchen designer and fitted out with the best-of-the-best from the likes of Hettich and Fisher & Paykel Appliances. This gourmet kitchen also has additional work space hidden from sight, with an extra sink for cleaning. While the 50 square metre kitchen itself is a great photographic space, there is also an adjacent 27sqm photography studio.

Caso explains: “Hire packages come with all the trimmings if you want them. Stylists, photographers, equipment and even retouchers. Or just bring in your own crew and use the facilities. No dogs, kids and plenty of space to move around. “So when the Sproutman brand recently wanted to create some inspiring new packaging artwork with tantalising recipe-shots, the Number 8 Kitchen was the perfect choice of location. The food was prepared, styled and captured on film downstairs, then upstairs (later the same day) the retouchers and designers worked their magic. How deliciously simple. “The Number 8. Kitchen concept takes food convenience to a whole new level,” he says. The Number 8 Kitchen is now available for hire and an ideal location for entertaining, cooking and shooting. Ask them about their halfprice introductory offer for FMCG readers and for more information visit number8kitchen.co.nz .

recr u itm en t

The sad state of key account management Hamish Barr is concerned about a ‘big hole in the market’. We have been exploring a marketplace issue with quite apparent capability, coaching and training gaps in our sales teams within the industry. We will keep exploring this over the next two editions. Expectations continue to rise for Key Account Managers (KAM) with everyone looking to get the best in the market. This has seen remuneration levels rise steeply over the past few years, yet real capability appears to be in very short supply. This is possibly because learning and development opportunities are largely vacant, which is likely going to create real issues for us going forward unless we act. Firstly, let’s agree there is a problem. I went to a number of sales directors, general managers, a highly regarded FMCG industry sales trainer, a retailer and a well regarded business manager to gather their views. Interestingly – their views were all very similar: “There is a big hole in the market which is widening. Too many KAM’s are too tied to spreadsheets, email, promotional programmes and inward-facing tasks and are not doing enough of what matters – being out in front of the customer. Most do not actually know what ‘Win/Win’ looks like - there is a real lack of understanding here. Most give the account whatever they want as they are too scared of conﬂict and this cycle has started to go on for so long, that we are now seeing business managers and sales directors not having the skills themselves to pass on. Or the time to coach, train and develop if they do actually have the skills.” Another said; “The calibre has dropped over time considerably. Many companies have become so systemised and formulaic in their approach that not a lot of freedom exists for creativity. In the past there was a lot more

Hamish i h Marr, Marr

freedom to use your given parameters as a senior consultant FMCG – KAM and work within these to optimise things Sales & Marketing for the retailer and the company you worked OCG Consulting Ltd for. It was clear what you could do to make a real difference. Now, there seem to be two big issues. 1) People are hiding behind spreadsheets, emails and internal meetings rather than being out from behind the scenes. 2) Commercial acumen. Most lack the required level of financial literacy and the ability to analyse, interpret and explain. This involves reading retailers’ annual reports, up-todate FMCG and FGC information and being at the forefront of industry dynamics. This helps put some perspective around some of their recommendations that they will put in front of retailers. Is it true that only 10% of KAM’s are living up to expectations of their companies? Most seem very transactional in their approach and don’t know the nuances of successful relationship management and from the comments above are too weighed down with stuff that doesn’t produce real results. But what can be done to look beyond the immediate transactional need? Where does the problem sit here – with the retailer with ever increasing demands for better pricing and reducing profits of suppliers? With the sales directors? The KAM’s themselves? It seems most are fighting to survive rather than playing a brave game. Everyone is chasing their tails trying to keep up and keep their jobs in a non-dynamic marketplace with so much pressure on costs. In the next column, we will look at what options we have to fix this issue.

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A converging world New technology is revolutionising the shopping experience. THE humble mobile phone was once a technology that simply enabled you to call someone. Today however, most mobiles are powerful devices that can also manage your diary, take print resolution photos and enable access to the internet and email. Technologies are increasingly ‘converging’, so where once there were ten physical items, you now find only one. As consumers increasingly use different devices – including mobiles – to make purchases, the payments industry is turning its focus to developing services that address how the user experience converges across various devices. Unlike any other time in recent history, there is an intense interest in payments transformation, driven in large part by consumers. Consumers are leading a more connected, digital lifestyle – a life where the digital and physical worlds converge. This has contributed to a dramatic, global transformation in consumer behaviour, which is due in large part to the continued adoption of connected smart devices. For example the trend of ‘Showrooming’ has been causing challenges for some local retailers. From smartphones to PCs, tablets, TVs and game systems, even appliances like refrigerators are getting connected. Connected devices have moved us into a connected digital environment in areas such as publishing, music and entertainment – and now payments as these devices enable shopping and purchases anywhere at any time. These fundamental changes in 42

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how consumers interact and use these smart, connected devices – for research, or communication or consuming media – will also transform how they transact. Smartphones and tablets are just the first of many form factors where we will see this transformation occur. And interestingly, people are not getting rid of one device to use another – they want all of their devices and the associated experiences to come together with solutions that work across multiple devices. It is this convergence that is radically altering the day-to-day shopping experience and the habits of consumers, blurring the lines between online and offline commerce. As these worlds merge, there is no longer any distinction between bricks and mortar, eCommerce and mCommerce retailers, giving rise to the ‘omnichannel retailer’. Consumers will now shop and pay in whatever way best fits their needs and lifestyles, from every device they have, with a simple tap, click or touch at the register, in the aisle, at home, on the go – or anywhere else. Expect customers to come in store, scan a QR code in the aisle, ask the retailer to ship it to their home and walk out. Or they might do a spot of mobile shopping while on the bus and chat online to a sales assistant before clicking accept and dropping into the store quickly to solely collect their purchase. The in-store and online worlds are converging at a rapid pace and customer expectations are being

driven in part by exciting new technology changing the way we shop. Consumers want to shop and pay in whatever way best fits their needs and lifestyle. With convergence, retailers are at a pivotal moment in time and those that are particularly savvy, are now looking towards how to achieve an omni-channel strategy: a way to ensure they can connect with their customers across all of their channels. Many retailers are already taking the first step towards this by bringing the online shopping experience into the store, extending the POS and eliminating the checkout queue.

The key to driving adoption and value from converging technologies will be education.

ENHANCING THE PAYMENT INTERFACE But to truly engage consumers, retailers must also understand shopper behaviour and find out what drives their customers during their shopping experience – from start to finish and across channels. This will enable retailers to better engage with their customers, enhance the customer experience and increase brand loyalty. For retailers, convergence means enhancing the payment interface to meet customer expectations and improve the brand experience. You might want to invest in optimising

your website for mobile, or you may want to simply update your terminals to enable the latest contactless technology. Contactless technology is paving the way for further convergence. While in New Zealand we already have contactless cards, it is expected that MasterPass digital wallet technology will soon become available locally, providing consumers with another convenient, secure and seamless way to shop online or in-store. At its simplest level, the way digital wallet technology will work is that instead of a customer having to enter and verify their credentials (address, contact number, payment card details, loyalty numbers), each time they shop, all that information will be stored inside their digital wallet hosted securely in the cloud by MasterCard. All a customer will need to do is touch the MasterPass button at accepted retailers and the wallet will take care of the rest. Excitingly for retailers, branded loyalty programmes, special offers or discount vouchers can be overlaid in a digital wallet so customers will find all they need to go shopping in one place. If retailers take the time to understand the opportunities that digital wallet technology can provide, and use the technology

to their benefit, it can differentiate their product, improve customer engagement and attract new customers. As with any payment technology, security and trust is critical and this is something that the whole industry takes extremely seriously. This is why MasterCard continually invests in technology and has a strong focus on innovation to ensure products are cutting-edge. The benefits of convergence are immense for everyone, but to deliver on this promise retailers need to do their part as well. This includes training staff to ensure that they, as the face of your business, know what’s going on. The key to driving adoption and value from converging technologies will be education. To truly take advantages of convergence, it is vital that everyone understands how this technology works and how it will benefit them. Convergence is happening now and it’s a critical moment for retailers to get on board. New Zealand once led the world in moving from cash to an electronic payment system almost 30 years ago. This could be our chance to do that again and revolutionise not just how we pay, but the entire customer experience for our nation’s retailers.

Matt Barr MasterCard Australasia’s Head of Market Development & Innovation

AUGUST 2013 FMCG

More planning, less chaos Industry experts explain the latest trends in planograms, marketing and displays. IN a world of speedy consumer decision making goods need to be accessible and quick to catch attention, says Steve Meadows, marketing manager for DisplayMakers. “Minimised store time with maximised purchases is key”, he explains. Retailers can achieve this through a multi-dimensional approach and this is the future trend, according to Meadows. “Common is working in the two dimensions of ‘what’ and ‘where’, and fast-growing is the third dimension of exploring with us on the ‘how’,” he says. “DisplayMakers’ strength 44

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lies in our approach to the how. We combine ready-made hardware with ‘we make’ solutions to introduce a savvy element to planograming. “Good examples are products that currently get lost lying flat on a shelf, which will be better presented either hanging on a prong, gravity rolling forward, or even getting pushed forward to be faced up, or perhaps highlighted through LED technology. “More and more from our clients’ briefs, we see an increasing desire to start with and maintain

perfect presentation throughout stocking levels, which is creating an acceptance of modern products and methods to achieve this goal,” he says. Without doubt a tidy, organised, full-looking display is visually simpler and more appealing to the consumer. This creates more impulse sales and of course greater shopper satisfaction, the key factor in customer loyalty to both the brand and the retailer. Meadows says: “Shoppers want to be excited by products, displays and

featu re A tidy, organised, full-looking display is visually simpler and more appealing to the consumer. This creates more impulse sales and of course greater shopper satisfaction. ease of shopping. Multiple sites in store are becoming more prevalent for common products (for instance you might see the same drink on the shelf in bulk, in the cold section, and at the check-out), which is centralised around different customer needs. Store owners are increasingly eager to create and market additional space, particularly around checkouts. This is a win-win-win for the retailer, brand, and the customer.” He says strong shopper “buy me” signalling is a paramount part of a retailer’s tool kit. He adds: “It is very hard in this environment to circumvent solely price-based promotion. But simple logic tells us the customers won from this alone will be just as quickly lost again once the price returns to normal. Customers may also flock to cherry-pick the specials, but if that is all they buy (and this becoming increasingly common), the opportunity has been lost. Marketing tactics for the future are best served promoting a point of difference that can’t easily be duplicated. And then making it easy for the customer to find and buy so the marketing programme must be supported by the planogram.” Meadows believes future trends will also include some non-competing partnership marketing, leveraging the combined brands’ strengths, rather than working in silos. “Strategically locating products grouped together creates the ‘destination’ or ‘hotspot’, and that is where the products of a display company come best into practice,” he says.

SALESLINK MOBILE – THE PERFECT STORE CALL It’s only three years since the launch of the Apple iPad, but a quick glance in store and a number of territory managers and merchandisers are now armed with a ruggedized iPad, with many running the New Zealand based app, SalesLink Mobile. SalesLink Mobile has revolutionized how field staff record their store activity and it is providing management near real-time access to distribution and shelf data reporting. No need to wait for scan data reports when management are able to get the information they need direct from the field – just one set of data that’s both accurate and up to the minute. Leading New Zealand FMCG companies including Fonterra, Pernod Ricard, Tip Top, Beam Global, Hellers, DKSH, Dairyworks and Master Pet have been quick to adopt SalesLink, as have distribution brokers including KML, Rothfords International and Topline. Scott Birley, SalesLink Mobile’s key account director, says a number of companies who have been early adopters of SalesLink Mobile have had great gains in improving business process, with their field based staff both more productive and efficient. “SalesLink is a New Zealand developed app which suits the local FMCG market place and of course it has the advantage of experienced FMCG people on board who have an understanding of our industry plus, it’s backed up with local support.”

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AUGUST 2013 FMCG

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SalesLink Mobile has revolutionized how ﬁeld staff record their store activity and it is providing management near real-time access to distribution and shelf data reporting. Todd Heller, founder of New Zealand’s leading smallgoods seller Hellers said: “ Our guys in the field used to lug a heavy bag around all day. We switched to the iPads last year and it’s made their job way more efficient. We can show our latest TVCs, trade presenters and SalesLink has removed all of the

FMCG AUGUST 2013

paperwork. As a result, our head office has got some great efficiencies as well.” Two years on SalesLink is a market leader in New Zealand and is now taking on Australia with leading clients such as Cerebos Greggs and Master Pet already using the solution throughout all states.

Food packaging from food Nick Rowe considers alternative packaging solutions. FOOD packaging derived from basic food sources is an intriguing concept. On the one hand the wider packaging industry is trumpeting the benefits of food packaging from renewable resources such as corn starch, potato starch and sugar cane, in turn reducing the reliance on oilbased packaging and embracing the greener path. While on the other hand there is the undeniable effect these new applications have had on the price of basic commodity foods, in particular corn, which so many of the world’s poorest societies rely on to meet their basic needs. This almost becomes a moral debate rather than a green debate, especially when we are talking about plastic derived from corn.The commodity producers will often supply to the highest bidder, which can leave the marginalised even more so. However, I still believe plastic derived from corn to be a significant development within the sector and one with massive future potential to be utilised across a wide range of food products. There are some kinks to be ironed out for sure, but the possible applications are almost limitless. Plastic from corn is one thing, but there are many other developments surfacing where the packaging has been produced either directly or indirectly from a food source. Recently, local company Earthpac received $2.1 million in central government funding to continue their development of meat and vegetable trays manufactured from potato starch (pictured). Rather than go to a waste water plant

the potato starch is captured and processed. Potato starch is also becoming more common among the fast food industry where the packaging format is gaining wide acceptance in the use of burger clamshells and takeaway trays. There have also been more and more examples of companies using mushroom-based packaging. While this concept perhaps doesn’t squeeze the world’s food sources quite the same as corn-based packaging, it has gained some notoriety through various events like the TED (Technology, Entertainment, Design) conferences.The mushroom packaging can act as a replacement for expanded polystyrene and used as protection for shipping fragile goods. Mushroom packaging company, Evocative Design, have managed to convince Dell computers to use their products for shipments of certain components

and product lines resulting in significant exposure for the packaging technology. Whatever your stance on food packaging from food sources, there is no doubt it is a growing trend as brand owners and consumers see the value in packaging that comes from a renewable resource – even if it is a food source. There is often the added bonus where the food packaging is biodegradable and can be disposed of through composting, though this is not necessarily true in all cases. Of course it must also be said that this type of packaging format cannot be used for all food types. Fresh foods in particular require packaging to be constructed with unique properties designed to keep the goods fresher for longer and ultimately safe for consumption. Food safety is paramount and packaging material selection must ensure this goal is met, while at the same time balancing with other areas of the wider business strategy such as cost, efficiency, environment and any cultural considerations. Food packaging derived from food sources will continue its growth path and the technology will gain mainstream acceptance as a packaging format. The question is: will your brand be at the forefront?

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

AUGUST 2013 FMCG

Learning from international trends Trina Snow Snow, executive director, NARGON.

Debates over “bad” products not settled yet, ﬁnds Trina Snow.

New Zealand was ﬁrst in the world to give women the vote, to win the Rugby World Cup and to conquer Mount Everest. However, on many issues today we often wait and consider the international evidence about potential policies before deciding whether or not to implement them here. In recent years, one of the most contentious policy areas has been regulations and/or restrictions relating to the sale of “bad” or “harmful” products. These products, which are all legal, include alcohol, tobacco and plastic shopping bags. All of these issues have been under active consideration in New Zealand and several wide-ranging changes have been implemented. It is timely to consider the trends in other markets which are broadly similar to ours. Successive New Zealand governments have considered passionate pleas to either ban plastic shopping bags or introduce a minimum charge to discourage use. Countries such as South Africa and China have introduced complete bans, as have major cities including Los Angeles and San Francisco. Many other countries charge for bags (Wales, Ireland and Northern Ireland) or impose taxes on their use (Germany and Denmark). However, New Zealand governments have consistently supported a voluntary approach, which promotes the use of reusable bags. As a result, the number of plastic bags used has fallen signiﬁcantly and reusable bags have become a commonplace sight. Scotland is the latest country intending to put a charge on all plastic bags. By October 2014, Scottish retailers will have to charge a minimum of 5p (around NZ10c) per bag. The Scottish Retail Consortium, which represents retailers, believes the legislation is not needed because by “working with our customers we have succeeded in reducing carrier [plastic] bag usage by over 40%. However, it is our view that if we focus solely on plastic bags, we are in danger of being distracted from much larger and more important issues around waste.”

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NARGON believes the voluntary approach adopted by New Zealand is working and should continue. Under strong pressure from the Maori Party, the previously reluctant National Government moved very quickly to implement tobacco display bans in stores. The UK adopted similar policies but small stores were given more time to phase in the changes. The next step after display bans is plain packaging, which means tobacco products can only be sold in unbranded packaging with a single simple typeface on a deliberately ugly coloured background. Australia introduced plain packaging last year – the first country to do so. Technically, the Government here is consulting on the issue but Associate Health Minister Tariana Turia has made it very clear she expects to see it implemented and has already begun work on the policy. The British Government was planning to introduce a similar regime but their Health Secretary announced a delay in implementation saying his “department had received differing views in a consultation into the merits of the move.” As a result, he confirmed “the Government has decided to wait until the emerging impact of the decision in Australia can be measured before we make a final decision on this policy.” The British Health Minister said: “What I was quite surprised at was that even after about three or four months, they [the Australians] couldn't give me a picture of any emerging evidence as they were finding it, and that's why we need this time.” New Zealand currently seems likely to press ahead with plain packaging whether the results from Australia are available or not. The British Government is also expected to drop its proposal to impose a minimum price on alcohol in England and Wales, even though the policy had been championed by Prime Minister David Cameron. The Scottish minimum price proposal is in limbo after a legal challenge. Instead, Cameron’s coalition government is likely to target “loss-leading” alcohol sales rather than imposing a blanket minimum price. The Government here rejected minimum pricing last year but reserved the right to reexamine it. They would do well to study events unfolding in Britain and Australia. Our industry does not exist in a vacuum and international trends have an impact here.

RECYCLING PROGRAMME ARRIVES ON SI FORECOURTS BP and Coca-Cola Amatil New Zealand have joined forces with the Love NZ brand to bring forecourt recycling to the South Island, with Mayor of Dunedin Dave Cull launching the programme at Dunedin’s BP Connect Southern in July. The bintainers have arrived at BP Connect stores in Dunedin, Timaru, Queenstown and Christchurch and have already been installed at over 30 BP forecourts across the Auckland region. Over the next 12 months further bins will be installed across all 81 BP Connect forecourts throughout New Zealand. In the ﬁrst full month of recycling at 31 Auckland stores, 12,576kg of recyclable material was collected and at this rate it is expected the 81 recycling Bintainers will together collect enough cans, bottles and cups in one year to stretch well beyond the length of New Zealand when stacked end to end*. Love NZ, a partnership between local and central government and industry to increase public place recycling, said the investment by BP and Coca-Cola had the potential to greatly reduce waste to landﬁll. This project is part of a commercial programme which has received contributory funding from the Waste Minimisation Fund. Nicky Wagner, Chair of the Love NZ Board said: “Most Kiwis are good recyclers at home; 86%** of us have access to kerbside recycling and we’re pretty good at using that. But only 18% of waste material collected out and about is recycled. These new recycling bintainers on BP Connect forecourts make it easy for people to recycle their containers and packaging while out and about. “The BP, Coca-Cola partnership is a very visible illustration of Love NZ’s commercial initiative to partner with major brands to install and promote more out and about recycling bins. Over the past three years we have more than doubled the number of Love NZ public place recycling bins and introduced

Dunedin Mayor Dave Cull and BP GM Retail Frank van Hattum with the BP Bintainer.

over 2000 mobile event recycling bins, but we need more… The Love NZ project is the smart way to do things – bringing industry together with councils which will help reduce the overall costs of recycling through economies of scale and building consistency around the country,” she said. Barry O’Connell, managing director of Coca-Cola Amatil NZ said: “We’ve been involved in recycling for many years and we’ve invested in establishing a signiﬁcant number of programmes to encourage and promote effective out and about recycling.” The project is also liaising with suppliers, recyclers and councils in each region with the goal of setting up effective paper cup recycling where it makes economic and environmental sense to do so. ● * In May on average each bin in Auckland collected 406kg of recyclable material equivalent to 15,000 bottles and cans a month. At that rate 81 bins would collect each year 394 tonnes of recyclable material. ** Horizon Research Poll April 2013.

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AUGUST 2013 FMCG

the business of liquor reselling

Cola flavoured w New trends and industry insights from Spiros Malandrakis, senior analyst - Alcoholic Drinks, Euromonitor International. Euromonitor’s monthly summary highlights the most interesting product launches, focusing on the direction the alcoholic drinks industry is taking in terms of innovative developments. First, a French revolution: Cola ﬂavoured wine. One of the most infamous oxymorons plaguing the wine industry is the apparent gap between perceptions, research and actual purchasing patterns, especially when it comes down to the dry to sweet ﬂavour spectrum. The anomaly, still surprisingly overlooked by the majority of wine producers, is that while consumers participating in surveys overwhelmingly suggest that they

prefer drier styles, they tend to opt for sweeter variants when actually visiting the wine aisle. Even more troubling, consumer perceptions of what constitutes ‘dry’ vary from country to country and in most cases directly oppose industry deﬁnitions or stereotypes. In other words, the wine industry’s navel gazing and snobbery are forcing its own consumer base to consciously or unconsciously provide falsiﬁed or pretentious insights to eager marketers in a vicious circle of inertia inducing self-delusion. Drier styles, obscure grape varieties and incomprehensible labels from unpronounceable chateaus are supposed to be the epitome of sophistication and consumers are

world's first cola-flavoured wine Rouge Sucette. The 9% abv product, which is 75% grapes and 25% water/ aromas, is being distributed to hypermarkets throughout France although more markets are also in the pipeline. The drink, which translated into English means 'red lollipop', is aimed at younger drinkers and women. Haussmann Famille also launched a passion fruit-flavoured rosé and white wine two months ago.

‘CANTAILS’?

d wine?

happy to oblige, agreeably stating exactly what they are expected to say whenever asked for their opinion, in a pointless feedback loop. And then they go buy something completely different. And sweeter. With a simpler, streamlined label. For cheap. The ‘moscato madness’ currently sweeping the US alongside the ongoing fascination with sweeter red blends are the most recent signs of the industry’s belated and still gradual realisation. Targeting a generation of millennials that has been raised on sugary drinks, snacks and fast food would inevitably skew palates towards the sweeter side. It should be rather obvious. And now, even the notoriously conservative French seem to get it. Queue moans of horror and indignation from the industry. And skyrocketing sales in the real world. Haussmann Famille, part of French wine house Châteaux en Bordeaux, has launched what it claims is the

Beer embraces the cocktail resurgence in a can. If there ever was any doubt about the importance, relevance and momentum of the cocktail trend, it should have by now been diluted, shaken and served to all the cynics in the tall glass of intoxicating performances enjoyed by the spirits categories embracing it. Bourbon’s ascent owes as much to old-fashioned cocktails as rum to cuba libre or cachaça to caipirinhas. Beyond the accessibility and emotional response elicited by such – now ubiquitous - offerings, it is the sense of ritual and mystique they bestow to their respective categories,

a characteristic painfully lacking in the largely complacent beer category, that is essential. But not any more. Beyond recent efforts to craft imaginative beer-based concoctions targeting consumption on the go, while ﬂaunting their affordability credentials and casual positioning, the category is now dipping a toe in the on-trade. While it is still early days and this is an exploratory venture rather than a full scale initiative, can served beerbased cocktails with a premium positioning might indeed play a key role in changing the category’s drinking occasions and ultimately, future. Coors Light and Blue Moon CanCrafted Cocktails are being served in a reusable beer can and “are a unique combination of beer and liquor”, according to Red Robin*. The Coors Light serving is mixed with ginger liqueur, lemonade and fresh lemon, while Blue Moon comes with vodka, orange juice and fresh lime juice. ● Source: Euromonitor * US-based Red Robin Gourmet Burgers released two new beer cocktails for the summer that will be available exclusively at Red Robin dining locations.

AUGUST 2013 FMCG

HIGHEST ACCOLADE FOR CHIVAS REGAL Chivas Regal, the world’s leading luxury Scotch whisky, is continuing its global success after receiving the highest accolade at the recent International Spirits Challenge (ISC) 2013 awards in London. Chivas 18-Year-Old, the number one ultra-premium Scotch whisky in the world, picked up the coveted Scotch Whisky Blended Trophy after being selected from over 400 entries.

received gold medals at the tasting challenge for The Glenlivet 12-YearOld, 15-Year-Old French Oak Reserve, 18-Year-Old and XXV. Ballantine’s Finest was also awarded a gold medal, while Royal Salute, was equally recognised for its 21-Year-Old. Chivas Brothers is the Scotch whisky and premium gin business of Pernod Ricard. Kathryn Love, marketing manager for Chivas in New Zealand

This year’s competition was also remarkable for the Chivas Brothers’ wider portfolio, picking up a grand total of 32 medals at the ISC. This year’s competition was also remarkable for the Chivas Brothers’ wider portfolio, picking up a grand total of 32 medals at the ISC; 14 gold medals were awarded to its whisky expressions alone, highlighting once again the consistent quality of its brands. The Glenlivet, with its signature smoothness and ﬂoral, fruity proﬁle,

says it is a great honour for Chivas Brothers to be recognised so widely for its premium Scotch whiskies. “The Scotch Whisky Blended Trophy awarded to Chivas 18-Year-Old and the numerous medals received across the portfolio demonstrate the continuing success of the brands. We are proud to receive such acknowledgement from the internationally renowned

and rigorous judging panel at the International Spirits Challenge,” says Love. Now in its 18th year, the ISC promotes outstanding quality spirits from across the globe. Over 1000 entries were drawn this year from nearly 70 countries and judged for quality by a panel of independent experts. ●

DELICIOUS DARK LAUNCH Boundary Road Brewery’s beer range just got a little darker. He might have got away with murder, but the favourite tipple of the world’s reigning hide-andseek champion can now be found on Kiwi supermarket shelves. Jack the Sipper (5.6% ABV) is a porter with hints of roasted malts, with a rich and creamy finish, and is available under the Brewer’s Cut 500ml range. “This is our take on an old school London porter popularised around the early 19th century,” says Ben Shaw from Boundary Road Brewery.

FMCG AUGUST 2013

“Also joining the Brewer’s Cut 500ml range is the Arabica Dabra (6.5% ABV), a stout that has a luscious oatmeal body with the invigorating taste of coffee. This delicious creation is perfect for your next beer break – or when you’re in need of three wishes. Beer brewed with coffee combines two of the best tastes known to man,” says Shaw. The new additions to the Boundary Road Brewery Brewer’s Cut 500ml single serve range are available now at all leading liquor retail outlets and supermarkets nationwide, with RRP of $6.99. ●

A Fresh New Look for Peter Yealands PETER YEALANDS IS NEW ZEALAND’S FASTEST GROWING BRAND WITH MAT GROWTH OF 92%* • Stronger premium packaging for standout on-shelf • Attract new shoppers • Same award-winning, sustainably produced wine Instore from August with launch campaign beginning in September. FRESH

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Sacred Hill Wine - David Mason - Managing Director

SACRED HILL WINE COMPANY CELEBRATES FIRST BIRTHDAY An expanded brand portfolio and a reinvigorated Wild South brand are among key achievements Sacred Hill Wine Company is reﬂecting on as it raises a glass to its ﬁrst year of operation. The company was born 12 months ago as Hawke’s Bay based, boutique winery Sacred Hill Vineyards announced it was expanding its local and global operations and wanted to take a more active and direct role in promoting its portfolio. The company’s brands include Sacred Hill’s three tiers: Orange Label, Halo and Special Selection, as well as Wild South, Ti Point, Whitecliff and Gunn Estate. Managing director David Mason says the company has recently added two important new ranges, Gunn Estate Reserve and Landscape, to the portfolio and both have gained good traction in the market.

“We have also put Wild South under the microscope as a brand. An investment in customer research in New Zealand and the US has led to a successful consumer promotion and the recent development of improved packaging, which reﬂects the quality of the wine in the bottle and opens the way for greater customer engagement,” says Mason. He adds: “We have already created 17 new jobs around the country and we would hope to see that increase as our business grows domestically.” Mason says customer service and delivery have been a priority for Sacred Hill Wine Company from day one and will remain so. “We’re proud of our achievements there in our ﬁrst year. We have developed closer, direct relationships with trade partners, which also bring

us closer to our consumers and their needs.” Mason says while Sacred David Mason, Hill Wine Managing Director Company pursues the sales and distribution of the wines, Sacred Hill Vineyards will remain 100% focused on the crafting of exceptional wines: “The Sacred Hill portfolio of wines won more gold medals, ﬁve star ratings and international critical acclaim in 2012 than in any previous year. We are passionate about our wines and we look forward to delivering more stunning wines from the outstanding 2013 vintage.” ●

NEW LOOK FOR CHURCH ROAD RANGE Church Road Winery, one of New Zealand’s oldest wineries ffounded in 1897, has unveiled a new look for its Church Road and Church Road Reserve wines. The new labels provide w an elegant expression of the premium quality wines inside each bottle produced by the iconic Hawke’s Bay winery. The ultra-premium new look T Church Road Grand Reserve C wines replace the Church Road w Reserve packaging, with the R Grand Reserve wines featuring G a striking black and gold label aand a distinctively unique neck ﬂag that proudly conveys the Church Road story. C Created only in outstanding C vvintages, multi-award winning Church Road Grand Reserve C wines are made from the ﬁnest w

FMCG AUGUST 2013

of each Hawke’s Bay harvest and crafted using hands-on traditional winemaking techniques. While the labels may have evolved, the outstanding quality of the wines remains constant. Chris Winemaker Chris Scott at Church Road winery. Scott, winemaker for Church Road The gold foiled Church Road says: “Church Road is one of Winery crest, which was ﬁrst Hawke’s Bay’s oldest wineries revealed when the Church Road and it’s our heritage that gives McDonald Series wine range us our inspiration. With over 115 was released in April 2012, will years of winemaking at Church now also appear across the Road, we’re all excited about entire range. the evolution of the labelling The new look Church Road that will help pave the way for wines have started appearing on Church Road’s future success.” shelves in July 2013. ●

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at the opening of New Owner Jon Morrison and family

World Te Puke.

Villa Maria’s export & PR manager Ian Clark wades ashore on a sales and wine education visit to the prestigious Vomo Island Res ort in Fiji.

Church Road winemaker Chris Scott tastes the new vintage TOM .

Stefan Ryan, Panasonic key account manager (second on left) presents a cheque to Kerry Gregory of the NZ Fire Service for the ‘Smoke Alarms in at Risk Homes Programme’. Panasonic has supported this programme for more than ﬁve years, donating more than $26,000 towards it from the sale of Panasonic batteries in Countdown supermarkets.

Brendon Edwards from New Plymouth is the winner of an exclusive getaway to Noosa, Australia. The competition was Buderim Ginger’s most successful consumer promotion to date with almost 2000 entries from all over New Zealand.

Has your team been part of a charity event, promotional activity, a great harvest, or moved to new premises? Send us your favourite snapshot and go in the draw to win a hamper (worth $35) containing: • 1x Danny’s original olive pita bread • 1x Danny’s original garlic pita bread • 1x Danny’s Garlic & Sesame pita crisps • 1x Danny’s Onion & Poppyseed pita crisps • 1x Danny’s La Mediterranee range Italian pita bread • 1x Danny’s La Mediterranee Moroccan pita bread • 1x Danny’s La Mediterranee Turkish pita bread. For more information, visit pitabread.co.nz. Just email your high res image with a caption to: editor@fmcg.co.nz

DIARY

FMCG INDUSTRY EVENTS 2013

16-20

DRINKTEC

Munich, Germany www.drinktec.com 19

NZ FOOD AWARDS

AUGUST

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

1-4

www.foodawards.co.nz

THE FOOD SHOW

ASB Showgrounds, Auckland, NZ 22-27

www.foodshow.co.nz 4

FOOD & GROCERY EXECUTIVE PROGRAM

Mt Eliza Centre for Executive Education, Victoria, Australia

SELAKS NZ ROAST DAY www.selaksnzroastday.co.nz

www.ifgm.com.au/fgep

OCTOBER

AIR NEW ZEALAND WINE AWARDS

Competition entries open www.airnzwineawards.com 24-25

5-9

Cologne, Germany

GLUTEN FREE FOOD & ALLERGY SHOW

www.anuga.com

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

NOVEMBER

GROCERY CHARITY BALL

2-3

Langham Hotel, Auckland, NZ

GLUTEN FREE FOOD & ALLERGY SHOW

Pioneer Recreation & Sport Centre Christchurch, NZ

www.grocerycharityball.org

www.glutenallergy.co.nz

SEPTEMBER 13-15

ANUGA

THE FOOD SHOW

AIR NEW ZEALAND WINE AWARDS

CBS Canterbury Arena, Christchurch, NZ

Queenstown, NZ

www.foodshow.co.nz

www.airnzwineawards.com

Is your event or trade fair featured here? If youâ&#x20AC;&#x2122;d like to be included please email: editor@fmcg.co.nz

COMING SOON! New and Improved Upright Packaging for the 500g and 1kg Range

T h e R i c e F ood E xpe r ts

Venue: The Langham Hotel, Auckland Day: Saturday Date: 31 August 2013 Time: 6.30pm www.grocerycharityball.org

LLIAM

Aitken &C o.