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February 2015 • Vol. 8 No. 2

Steve Anderson: “The cooperative is a collective strength; we all help each other to achieve the best we can.” (see page 12)

RAMPING UP INDUSTRY ISSUES WILL DETERMINE 2015 SUCCESS THERE are a number of key issues facing the New Zealand grocery industry this year and coming to grips with them will go a long way towards determining supplier profitability, many of whom have been under the cosh for the past year or so.

Perhaps the biggest disruption over recent times has been the role of promotions where around 57% of in-store product has been sold on

promotion – and this doesn’t look like diminishing. This huge reliance on promotional marketing is probably the highest in the world (USA 36%, the UK 33% and Australia around 40%) and is having a stunning effect on suppliers as the two retail giants use pricing as their key attack weapon.

The New Zealand primary problem is directly related to us having no hard discounting sub channel and secondly the increasing development of private label.

The industry issues don’t stop there and a number of other topics will need to be addressed as the voices of consumers and activists grow more strident. Issues such as country of origin labelling where misleading and manipulative packaging detail continues, sugar and the dreaded obesity subject receiving even greater emphasis this year; the growth of grocery

NEW SITE FOR LOSCAM LOSCAM, one of the world’s largest

SANITARIUM MOVES INTO UK SANITARIUM, in a joint venture with Australian finance company Wingate Group, is set to take on the UK breakfast market through its Life Health Foods UK company.

The company is this month launching Up&Go and has made it clear it intends expanding its major brands beyond New Zealand and Australia. In the UK, the liquid breakfast market is in its infancy and Sanitarium has identified a significant demand for on-the-go breakfast options. n

pallet pooling providers, relocated premises at the end of last year to meet the increased demand for the company’s services.

The larger and more strategicallyplaced premise, in the high-growth south eastern area of Auckland, positions Loscam to better support its growing customer base in terms of capacity and service response times.

New Zealand Business Manager Nick Trask says the new facility offered a substantially larger pallet repair and storage area and increased vehicle access for faster truck turnarounds.

“As more people are getting to know about Loscam and our reputation is spreading the demand for our pallets is growing rapidly which has meant

online and even the argument over “best before” versus “use by”.

And while consumers will become more vocal, there are endless other issues facing suppliers such as the enigma of the Code of Practice, the increasing rate of new openings as Progressive and Foodstuffs battle for market share and positioning bringing store cannibalism and stock levels into play.

While Aldi and the likes at the bottom of the market are showing little sign of activity here, there’s no doubt that both the majors will be looking for fresh ways to control this sector and there is already strong rumour that a new banner may emerge here in the North Island.

What is critical is that the industry maintains its crucial and healthy supplier/retailer relationship and that we get a realistic agreement on issues forced on us by outside agencies. n

HOLE IN ONE AT TRADE GOLF IT’S rare enough anyway, but a hole in one was a bonus for Bob Kiddie at last month’s Pak’nSave and New World trade associates annual tournament at Ngaruawahia. Bob is pictured with perennial organizer Allen Grainger who put the tournament together for the 24th consecutive year. There was a smaller field than usual as the event clashed with Black Caps playing Pakistan and the Auckland Nines league tournament pulling in thousands, but a great day was still had with the usual prizegiving lasting well into the late evening. Still there were enough players for two rounds kicking off with 6.30 am earlybird start. n

COUNTDOWN’S NEW COLLECTABLE CRAZE

Countdown has teamed up with the SPCA to launch its next collectible campaign, a limited edition range of Super Animals sound cards.

For every $20 spent in-store or online, shoppers will receive four Super Animals sound cards. Shoppers can also purchase an album for their cards with $1 from every album going to the SPCA to that we have outgrown our previous support animal welfare in New Zealand.

Auckland service centre and our new Countdown’s General facility is double the size and Manager Marketing, this will enable us to meet the Bridget Lamont, says demand” says Trask. the Super Animals cards Focused on delivering are a fun way for Kiwi high quality, efficient and kids and families to learn environmentally sustainable about and experience solutions, Loscam has 17 sites exotic animal species, operating throughout New while helping animals Zealand; ensuring client’s in our own backyard needs are met quickly and Bridget Lamont through the SPCA. n efficiently. n

contents 04 Countdown Orewa Opens 09 Insightful.Mobi Success 12 Honest Coffee Company 14 SIAL China 2015 21 Health and Beauty

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2015 seemed to come around incredibly quickly and there seems little likelihood it will be any easier than the previous 12 months – a tough year for many suppliers who faced slower sales and decreased margins. Dropping off a few staff here and there has been the order of the day for many suppliers and at the same time, there is the usual job changing at this time of the year.

It has been said that around a third of all employees will look at changing their jobs at the start of a new year leaving employers with both a recruitment headache and the lack of continuity with the retail trade. The nature of our industry with many multi-national suppliers involved makes it difficult to have exceptionally motivated staff although a great step towards retaining the team is recognizing good work and rewarding them. This is a great time of year to show that appreciation, after all, feeling valued is quite rewarding.

For the industry as a whole, we have been very fortunate that generally relations between trade segments have been good to excellent. Hopefully, the Countdown affair is behind us and recognition of some issues has diminished claimed problems. After all, the last thing we need is the introduction of some Australian-styled demands that don’t suit our market. Foodstuffs has had its own problems with the SAP changeover but the small things still cause problems – such as the waiting time in store that still hasn’t been resolved.

Anyway, it’s another year and another dollar. Good trading.

HAPPY New Year and welcome to our first issue of Supermarket News for 2015. It’s been an interesting time for the FMCG industry already this year - the UK grocery market’s in turmoil, we’ve seen job cuts to major manufacturing companies, resignations, restructures and historic companies file for administration – what will be in store for the next 11 months!

A big debate making headlines in New Zealand, apart from the Crème Egg controversy, is the drop in fuel prices. Virgin airlines has announced a price cut in its flight fares, due to the decrease in oil costs, but will we see a flow on effect and a drop in supermarket prices?

Some say that it may take some time to see a price decrease, if at all. With fuel prices said to remain this low for the next three years, consumers will have more spare cash in their pockets and some say supermarkets are likely to be the ones that will benefit. Also on my radar this month is Easter. At this stage, Countdown are the only players meeting consumer demand for hot cross buns and so the debate remains, how early is too early?

If you haven’t already, don’t forget to sign up to our weekly newsletter, ensuring you get the most up to date news as it drops.

KRYSTAL SPICER, Editorial

PETER MITCHELL, Publisher

ANATHOTH WINS IN OZ KIWI traditional preserves brand Anathoth Farm has taken out the Relish category for its Sweet Chilli Relish at the 2015 Australian Product of the Year Awards.

Product of the Year is the world’s largest consumer-voted award for product innovation. Established 28 years ago in France, POY currently operates in 40 countries with the same purpose: Guide consumers to the best products in their market and reward manufacturers for quality and innovation.

In Australia, the Product of the Year seal is backed by the votes of 16,000+ consumers, serving as a shortcut for shoppers in the supermarket, saving them time and money. For manufacturers of the winning products, the award is a powerful marketing message proven to increase product trial, awareness, distribution and sales.

Already seasoned award-winners for their jams, Anathoth Farm based in Geraldine, New Zealand is sold in Australia through Coles and is wellknown amongst Australian consumers for their farm-made jams, curds, and relishes. Unlike many competing products, all Anathoth Farm products

are made on the farm, using their unique, reusable pot that makes it stand out on busy supermarket shelves.

Danielle Esplin, Sales & Marketing Manager of Anathoth Farm says “We are delighted to be recognised as the winner of the Relish category in Australia’s Product of the Year. We are humbled that consumers think so highly of our Sweet Chilli Relish.

We know it tastes great, but it’s wonderful to have that confirmed by one of Australia’s most well renowned consumer awards.”n

UNILEVER SELLS PETONE SITE THE Jackson Street site of Unilever’s former head office and factory in Petone has been sold and the company will quit the site at the end of this year. The last local production at the site was laundry powder and this was relocated to Australia last year. The iconic building has been the training ground for many industry veterans over the past 50 years and large numbers of marketing and sales people had their initial training there. n

WEDDERBURN LEADING LABEL COST SAVINGS

A FRESH development from equipment supplier Wedderburn is promising to save supermarkets thousands of dollars on current adjustable fresh product labels by eliminating the backing liner.

Invented by a Chinese developer, Wedderburn has perfected a a liner-less label that goes through the company’s weigh-label system in use in most supermarkets and will officially launch the product in New Zealand later this year although it is being quietly introduced this month.

The output from the label reels looks like the normal die cut label but eliminates huge areas of waste through having no backing paper and a major reduction in raw material. The printer

technology available can give different size labels depending on the product with one of the key advantages being that all involved departments can draw from the same stock. And of course the labels can be pre-printed with the banner group headings. The changeover to the new liner-less system is easy for new stores or stores upgrading their equipment but an interim step of changing the label cassette is a practical solution for existing equipment. Linerless labels are expected to become the norm internationally although the liner waste can be recycled but this has proved difficult in many countries, including New Zealand, where there are few facilities to handle it. n

SupermarketNews is published under license. Please direct all enquiries and correspondences to SupermarketNews. The opinions and material published in this edition of SupermarketNews are not necessarily those of the publishers unless specifically stated. All material in this publication is copyright and may only be reproduced with the consent of the publisher. Copyright 2015 ISSN NO. 1173-3365

PUBLISHER Peter Mitchell, peter@reviewmags.com

MARKETING Tania Walters, tania@reviewmags.com

EDITORIAL Krystal Spicer, krystal@reviewmags.com

CIRCULATION & DISTRIBUTION Kieran Mitchell, kieran@reviewmags.com

ADVERTISING SALES Felicity-Anne Flack, felicity@reviewmags.com SENIOR DESIGNER Raymund Sarmiento, raymund@reviewmags.com

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WELLINGTON METRO CONFIRMED

NEW STORE FOR NEW WORLD MILFORD

FOODSTUFFS have announced it will be re-developing its New World Milford store. The last trading day for the current New World Milford store will be 15 March and the new supermarket will be built and opened before Christmas 2015. “We determined a renovation of the old building simply wasn’t the best option,” added Cochrane.

“We want to ensure we are able to be here for many years

NZ’S FIRST PALEO SUPERMARKET

DALSON Foods, which opened its virtual doors last year, switched from an organic supermarket to a strictly Paleo supermarket at the end of January.

Managing Director Jason Buckley says “it’s important that we take note of what our customers need and how we can best accommodate their specific needs.

Eating a Paleo diet has made me realise how diverse the meal requirements are and how difficult it can be to find these foods/ingredients from your traditional supermarkets.

We want to make it easier by having all food requirements in one place as well as recipes to take the hassle out of eating clean. This in turn has resulted in our change to being New Zealand’s only Paleo supermarket”.

The vision for Dalson Foods was to create an online supermarket that is your one stop shop for paleo foods.

to come, so we have decided that due to the existing store already being in the best location, a rebuild and creation of a new generation New World is the best way forward”, says Doug Cochrane, general manager of retail for Foodstuffs North Island Ltd. During the rebuild, the staff of 29 full-timers, 17 part-timers will be redeployed to other New World stores, including the new Browns Bay store which is due to open on March 17. n

“We believe in providing great quality foods without those hefty price tags. All products are hand selected and tested by ourselves to ensure customer satisfaction.

We’ve got strict standards, morals and ethics to how we run our business.” Says a spokesperson from the 100% New Zealand owned and operated Albany based store. “We believe in supporting our own and caring for the economy.

We work with local companies to supply our various customers throughout the country. We’re always on the hunt for new local products.” n

ANOTHER FONTERRA MISHAP

FONTERRA has lost its lucrative US cheese contract after forgetting to renew import licences. The blunder means the company’s 2015 quota is likely to be given to competing companies from other countries. Fonterra’s director of global ingredients, Kelvin Wickham,

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confirmed Fonterra had not renewed the licences, but refused to say how that had happened.

He would not put a value on US exports, citing commercial sensitivity, but ASB economist Nathan Penny said New Zealand’s total cheese exports to the US were $11 million a year, or 4 per cent of the country’s total global cheese exports. n

COUNTDOWN has confirmed that is plans to build its first metro store on the corner of Lambton Quay and Cable Car Lane in Wellington. Expected to open late-2015, the new store will be 1000 square metres and is estimated to create up to 50 new jobs in central Wellington.

Property General Manager, Adrian Walker, says it was an ideal site as the Cable Car was one of Wellington’s biggest tourist attractions and had a million visitors a year. It would also be very convenient and accessible to the capital’s main working population.

“It’s no secret we’ve been looking for CBD opportunities in Wellington for a long time and along with recent store openings in Crofton Downs and Petone, and a new store planned at the Reading Cinema Centre, this will provide further convenience and competition across the city,” says Adrian.

This is Countdown’s first central Wellington challenge to the rival Foodstuffs supermarket chain which has big New World which already has stores in Thorndon, Wakefield St as well as smaller metro stores at the Railway Station and Willis St. n

CONVENIENCE GOLF DAY THE NZ Association of Convenience Stores (NZACS) is staging its annual industry golf tournament on March 12 at Auckland’s Maungakiekie Golf Course. The group has chosen the Foundation for Youth Development as its charity of the day. Registrations, sponsorship and enquiries to admin@nzacs.com n

TOUGH CALL ON PANMURE STORE AFTER less than three years since Foodstuffs totally refurbished the almost derelict Panmure Four Square, the Jellicoe Court unit has closed its doors after it became no longer financially viable. Owner operators Danny and Rachel Pickett have disappointingly lost their business and locals say it is a result of 15 years of “paralysis” in the shopping

centre. The opportunity to develop a larger supermarket there appears lost with the area being earmarked for a four storey apartment block for elderly Asian residents.The building was empty for about 18 months before the Picketts took over and previously had a chequered history of ownership and operation. n

NEW NAME FOR BENJER AFTER 20 years of making fruit juices in Central Otago Alpine Gold and Benger Fruit Beverages have rebranded and renamed to Benjer Drinks Co, manufacturer of Benjer Fruit Juices and bottler of Mt Pisa mineral water.

Benjer are 100% New Zealand owned and operated, six of the nine flavour

variants are produced only from Kiwi grown fruit and all drinks are produced with no added preservative or added sugar. Benjer Juice labels now sport the topographical map of Cromwell Central Otago, the company’s home and source of inspiration, its promise is of quality and authenticity. n

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OCTOBER 10-14 ANUGA, COLOGNE, GERMANY • WANT TO KNOW MORE ABOUT TRADE FAIRS IN GERMANY ? TRY INFO@MESSEREPS.CO.NZ February 2015

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REBRAND AND GROWTH FOR FARRAH’S

FARRAH wraps has just launched a major new brand and packaging refresh with the help of Auckland’s Brother Design.

With a vivid and eye-catching new design for their product range, Farrah’s aims to build on its loyal customer base and convert new consumers to wraps. The company has already seen good penetration and growth since it 2010 supermarket debut and Farrah’s are determined to maintain the momentum, encouraged by the US market where wraps and tortillas have overtaken sliced white bread, and the market is now worth US$11+ Billion annually.

The new packaging design features

images of fresh and appetising food, cleverly printed onto transparent covering which reveals the wraps beneath.

Each of the eight wrap flavours feature examples of different ingredients and that is part of an ongoing strategy of consumer education which includes social media, demonstrations and recipe creations. The new look products also feature a number of “no-rules” easy and quick-to-prepare recipes, as does the new Farrah’s website and the point of sale displays which they provide to supermarkets.

The family business leads New Zealand’s Specialty Bread category in retail, Owner Jovan Čanak says,

NEW LOOK COUNTDOWN OREWA OPENS

RODNEY MP Mark Mitchell officially opened the new Countdown Orewa late last year after the existing store had closed in February.

The new supermarket, which was built on the same site as the previous store on Moenui Avenue, has almost doubled in size, and will offer Orewa customers a new and improved shopping experience.

Managing Director Dave Chambers says the company is delighted to show the community the modern offer that has been put together.

“We’re really excited to be back open for business – we know the community has been looking forward to our brand new offer and we’re committed to providing our local customers with fresh food, a modern shopping experience and great value for money.”

Store Manager Nicky Turner says she has looked to employ as many of her

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“From the beginning our customers trusted us to deliver consistently high quality wraps and that is something we continue to value, instilling that belief in our team. As we grew and saw the potential in retail and overseas trends, we invested heavily in world class manufacturing plant and processes along with a focus on bringing true innovation to our category and educating the consumer on the many benefits and versatility of wraps”.

Owners Jovan and Farrah Čanak started the business, supplying kebab shops with a wrap that wouldn’t crack or split when rolled, it’s a promise they still adhere to today. Originally turning out just three wraps per minute they

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SIMPLOT won’t be moving its processing to New Zealand, as Heinz and McCain have done in recent years. Workers at Tasmanian sites at Devenport and Ulverstone agreed to a deal, which was reached after a year of negotiations between the union and Simplot.

Simplot managing director Terry O’Brien says “I believe we found a compromise which will help Simplot Australia maintain its hard-earned market position, and to restart desperately needed sales and margin growth while continuing to protect the jobs and above-award wages of our employees.” According to O’Brien, the agreement, as well as longterm contracts with the two major supermarket chains and the drop in the Australian dollar, had helped the company keep its Australian factories operating. n

husband and wife team worked long days to complete their orders, today the company now have the ability to produce over 50,000 wraps per hour.

Farrah’s wraps now offer a range of eight variants in supermarkets, having just introduced a wrap featuring the “super grains” chia and quinoa. n

GOODMAN FIELDER PATENTS NEW PRODUCTS GOODMAN Fielder has announced it will commercialise three new food products this year with added health benefits for its consumers. The products will be the first of a pipleine of innovation into smart foods. The three patented products include a new baking product with enhanced health properties and two dairy products with improved sensory and health attributes.

Goodman Fielder research and innovation senior manager Shantanu Das says he couldn’t say more about the products at this stage other than they should reach shop shelves in the next 12 months. The products have been developed over the past

new team from the local community as possible. “I’m proud to be leading a team of 84 people, 12 of whom we have welcomed back from the previous store and 67 who are brand new to the Countdown business.”

The new store has been designed with Countdown’s latest design features and includes wider aisles,

SIMPLOT CANS NZ PROCESSING

a more expansive fresh produce department and energy efficient fittings and equipment.

It will also offer the popular Click & Collect service, as well as an expanded new layout for clothing and kitchenware merchandise, a full-service bakery baking fresh daily, service deli and seafood department. n

two years in conjunction with the Palmerston North-based Riddet Institute, the government centre of research excellence focused on the food industry. The Riddet Institute works with a number of food manufacturers to give them access to science and scientists to create new and improved high value nutritional products. High Value Nutrition, the first and largest of the government’s controversial 10 National Science Challenges, has funding of up to $180.8 million over 10 years to fund science that meets the goal of developing high value foods with validated health benefits to boost exports. The goal is to boost food exports to $45 billion by 2025. n

profile STEVE ANDERSON

From early beginnings, as a 16-year-old Four Square delivery boy in Dunedin, Foodstuffs managing director Steve Anderson has successfully grown Foodstuffs South Island for the past 15 years.

DUNEDIN born, Anderson attended Otago Boys High school before starting a BSC Honours in Geology, a passion of his since childhood. “I’ve always loved rocks, I still do. I always wanted to be a geologist; it runs in the family, my sister completed a Doctorate in Metaphysics in Cambridge.” However, working as a shift man at Strongman Cole mine in his University holidays, transporting supplies and equipment to miners, is where Anderson made the decision to abandon Geology in his third year of university and instead start a MBA. “As a 19-year-old, working at the mines enabled me to learn huge life lessons, but I realised I was too social to be a geologist, I enjoyed the interaction with people that geology didn’t have.”

At age of 25, Anderson completed his MBA and began work in the agricultural chemicals division of Shell Fuel in Wellington. Before being posted to London for the company, Anderson married his wife Lynley and the couple spent the next five years in London where Anderson worked as a petrol chemicals business analyst.

“I travelled a lot with Shell and I learnt a lot too. My first boss was my worst boss but also one of my best. I learnt a lot from him, mainly what not to do when managing a team.”

The couple had two of their three children in England before heading back to New Zealand where Anderson took on a role at Mainland as general manager of sales.

“My seven years at Mainland taught me how to become a better manager, I had to make a lot of quick calls that could be really tough and could mean restructure and job losses, I learnt that respect of the employee is of the utmost importance.”

When the opportunity as Foodstuffs South Island CEO arose, Anderson knew he had big boots to fill but says he was up to the challenge. Over the next decade, Anderson has been Instrumental in achieving ongoing success for Foodstuffs South Island, having been credited with the reinvigoration of the Four Square brand, the launch of the Henry’s Beer, Wines and Spirits stores and guiding the company to achieve $2 billion in sales revenue during 2008, in 2010 Steve Anderson was appointed Foodstuffs national managing director.

The challenge, Anderson says, has always focused on being able to provide Foodstuffs staff with the tools they need to help them become successful. “The Co-operative is a collective strength; we all help each other to achieve the best that we can”, says Anderson. The biggest change he has seen within the company, in his time at Foodstuffs, is its focus on the customer. Gone are the days of globalisation, instead Anderson says less money is being spent on global branding and more is being directed at thanking the individual customer.

When discussing the highlight of his career, Andersons says his mind and memory doesn’t stray far from that of the 2011 Christchurch earthquakes. “It was our toughest time and yet one of my proudest moments and a highlight of my career.” What he saw, he says, was incredible, a team of individuals working together to support each other and their community, ensuring the distribution centre was up and running and able to supply South Island stores with food for the local people.

Foodstuffs South Island Ltd employs 1200 staff; something Anderson says is one of his most important responsibilities, as is his focus on family and the community, a responsibility which has led to him successful initiatives. It was while driving over the Crown

ALL-OVER INNOVATION

DESPITE working for GS1 and close to the world of automatic data capture, I was very surprised to learn of the roll out of a new and really innovative technology leveraging the humble GS1 barcode at the US National Retail Federation conference in January 2015. Instead of the barcode being printed in only one place on a product packaging this new technology covers the entire packaging with the barcode. The benefit of this approach enables the product to be presented to the scanner in any orientation rather than the product needing to be oriented towards the point of sale scanner.

What I hear you say? Why would you want barcodes all over you packaging!?

I’ll explain.

The tricky thing about this system is that the human eye cannot see these ‘all-over barcodes’ at all. They are imperceptible and totally integrated into the imagery and text on your product packaging. The innovation comes from Digimarc, an established provider of clever printing and watermarking technologies. Their new Digimarc Barcode service involves you submitting to them a digital file of your final packaging artwork. After

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payment of a fee, they then run it through a proprietary process that ‘tweaks’ individual pixels in your artwork and then send the digital file back to you or your packaging supplier. The end result is that your product becomes covered with GS1 barcodes that only point-ofsale (POS) scanners (and iPhones) enabled with their special software can ‘see’.

Amazing!

Of course you must still have the standard GS1 barcode on your pack to ensure that retailers without their software can still scan them (in the way they have been doing for the last 40 years). But any retailers with Digimarc software in their scanners will get the benefits of dramatically faster check out processing (Digimarc claim real-world improvements of >33%) and less hassle for POS operators and/or self-check out customers. Surprisingly, retailers that have started to implement the technology have also found health & safety benefits – because their POS operators are not having to lift & turn products to get the correct orientation for the GS1 barcode to the scanner.

Products literally can just be slid or flicked past the scanner without any hassle.

Range, between Wanaka and Queenstown that Anderson first came up with the idea of the Food For Thought campaign, a free nutrition education programme that assists Year 5 and 6 primary school students make healthier food and lifestyle choices. “I discussed the idea with my children’s headmistress at the time, and we agreed that the best way to tackle the idea was by creating a campaign that made sense to the teachers and allowed the teachers to be part of the project.”

With the support of Foodstuffs and the Ministry of Health and collaboration with the New Zealand Heart Foundation, Food for Thought is now in its fifth year and has reached around 75,000 children, also allowing supermarkets to align with its local community. Another Foodstuffs initiative Anderson is particularly proud of is the company’s ongoing effort in sustainability. Foodstuffs have appointed a sustainability manager, ensuring the company does everything it can to be successfully sustainable, save money, recycle and use less. “We take sustainability very seriously, it benefits the company and the environment as well as appealing to our customers”, says Anderson.

Balancing a high profile position within one of New Zealand’s largest retailers is a demanding role, with a big year in store for supermarkets, Anderson says Foodstuffs South Island’s focus is completing the Hornby distribution centre and increasing productivity. As for the North Island, a further progression of the much discussed SAP enterprise software system is a strong focus and as for Anderson, a keen mountain biker, his personal goal is to complete the Motutapu mountain bike event in less than 3 hours and 15 minutes. n

Any catch? NZ brand owners could implement this tomorrow. However you or your retailer or the customer will not get any benefit if your retailer has older laser-type flat-bed scanners still typical of many supermarkets. The Digimarc software will not work on them. If however, your retailer has the modern camera-based scanners (which, as the name suggests, take a picture of products rather than use a laser to scan for a barcode), the Digimarc software can be loaded and will deliver speed and productivity benefits.

As an important additional benefit of an upgrade to camera-based scanners, the retailer will be able to read modern 2-dimensional barcodes (GS1 DataMatrix, QR Codes) on products and also be able to read barcodes such as digital coupons on consumer’s mobile phones which laser-based scanner cannot read. Amazing that a 40 year old technology can open a world of speed and interaction at the POS through clever thinking. n

Peter Stevens CEO, GS1 New Zealand

A landing party approaching the shore at Gallipoli during World War I. Snapshots in camp and around London album. Ref: PA1-o-471-20-2.

Alexander Turnbull Library, Wellington, New Zealand.

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HAURAKI CORNER NOW A COUNTDOWN PROGRESSIVE has opened its ninth store on Auckland’s North Shore with Countdown Hauraki Corner officially opened late last year. The smaller format supermarket had been home to the one of the country’s oldest New World’s up until April last year and marks the retailer’s 173rd store in New Zealand. Run by store manager Andre Ciseau, Countdown Hauraki Corner has created 44 new jobs as part of its 70 strong team and offers consumers a great range at competitive low prices.

“We’re really excited to be open for business – we know the community has

been looking forward to our brand new Countdown offer coming to Lake Road and we’re committed to providing our local customers with fresh food, a modern shopping experience and great value for money,” says Ciseau.

Located in the main Hauraki Corner shops, the new store has been designed in Countdown’s latest, new generation format and includes wider aisles and energy efficient fittings and equipment.

It will also offer the popular Click & Collect service. n

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FOR ENQUIRIES: Ph: 09 826 5550 or email: orders@natsons.co.nz

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• Great Taste • No Additives • Super Healthy • Super Easy

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INSIGHTFUL.MOBI APP SUCCESS SINCE 2012, Insightful.Mobi and its development partner have been developing bespoke field sales automation systems for New Zealand’s largest beverage suppliers and more recently, Independent Liquor New Zealand. Founded by Paul Miller, the leading grocery consultancy business offers mobile solutions for manufacturers, improving profitability, sales volumes, merchandiser coordination and rep productivity.

Insightful.Mobi’s app-based sales

systems are paying dividends for ILNZ, who have seen a 65% jump in field sales order taking as well as a large reduction in keying errors.

“Thanks to Paul and the team at Insightful.Mobi, Independent Liquor has transformed its ability to do smarter and more profitable business with and for our trade customers.

The comprehensive field sales solution they developed leveraged off our existing IT investments and met our business requirements in full,” says Brendan

BROTHER DESIGN’S BOLD NEW LOOK FOR FARRAH’S WRAPS FARRAH’S wraps have quietly grown into a market-leading position in the flatbread category. Using quality ingredients and authentic techniques the wraps enjoy a loyal and enthusiastic fan base. The sector, however, is undergoing a transformation as NZ consumers demand for wraps is exploding.

This has attracted a vast number of competitors, encouraging Farrah’s to conduct a major brand review with Brother Design.

The result is a whole new look and strategic approach, evident in the packaging, in-store presence and communications. It was a bold move, as Debbie Hyde, Design Director at Brother, explains.

“The conventional wisdom, as market leader, is not to rock the boat”, says Hyde.

“But the boat was already being rocked as so many others clambered in. So we decided to shake up the segment by pushing the brand out and owning several territories – adding dimensions beyond its superb performance as a product.”

The new packaging features bold colour variations with delicious-looking photography occupying the bulk of the ‘real estate’. The approach says Hyde, was to provide instant inspiration and show that using wraps is easy.

“We wanted the design to sing out in store with visual inspiration. So the photography is almost a recipe, you can see what to do

Smith, ILNZ’s sales director. Miller says the innovative sales tool presents insight in a simplistic format, allowing buyers to make decisions in-store using targeted data and have a return on investment of

no more than six months.

“We focus on identifying customers’ unique insights and tailor make packages which use these insights to drive a more effective sales approach.

The consulting work we do before we start developing a package is a big part of what we do and we work on transforming sales reps from order takers to order makers,” says Miller.

While its field sales apps to date have been individualised for large corporate clients, Miller says the company is looking to develop a subset of tools for smaller grocery players.

The apps feature built-in safeguards, are simple to use and are ideal as a business sales lead tool. n

at a glance. And the design uses a clear window to show the actual wrap under the photography, making fantastic results seem that much closer.”

The clean, bold design is mirrored in the instore displays, the new farrahs.co.nz website and in communications. Together, says Hyde, “It gives Farrah’s a distinct personality in a sector that’s increasingly looking like a commodity bread-replacement.”

“Getting chosen at that crucial moment of purchase is what it’s all about”, says Brother Design’s Business Development Director Jennifer McMillan. “Trying to ‘buy’ market share with expensive communication campaigns is usually uneconomic. Distinctive, relevant design like this can achieve far more, and continues its work on-shelf day-in, dayout.” The new-look range is already in store at all major and speciality supermarkets. n

February 2015

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February 2015

I 11

KEY DECISIONS LOOMING ON TOBACCO SALES

THE WAY that supermarkets display and sell products such as tobacco and alcohol have changed dramatically in the last three years. In 2011, tobacco products were prominently displayed in branded packaging, often right next to the checkout. In 2015, all tobacco will be locked away, out of sight, and possibly in uniform, deliberately dull, plain packaging.

The Government faces a big decision on plain packaging. There are two critical questions. Does plain packaging actually reduce smoking rates/expenditure? Is plain packaging legal and consistent with international agreements on trade and intellectual property? Both these issues are being tested in Australia which introduced plain packaging two years ago. The results are being closely watched by the Government, supermarket industry and tobacco lobby here.

An analysis of Australia’s plain packaging was conducted by Professor Sinclair Davidson and Dr Ashton De Silva from the School of Economics, Finance and Marketing at RMIT University. It is a detailed and

complicated document, but here is what many commentators believe is the key conclusion: “Despite our econometric efforts, the data refused to yield any indication this policy has been successful. There is no empirical evidence to support the notion that the plain packaging policy has resulted in lower household expenditure on tobacco than there otherwise would have been. There is some faint evidence to suggest, [all other things being equal], household expenditure on tobacco increased.”

The issue is clouded by the longterm downward trend in tobacco consumption in Australia. Professor Davidson and Dr De Silva have worked hard to try to measure what impact, if any, plain packaging alone had. Their answer appears to have been none. The evidence, the researchers argue, “is simply lacking.”

Now, this is only one study.

However, if similar results are shown in other jurisdictions and/or the Australian results do not improve, any plain packaging policy will be seriously, perhaps fatally, undermined. Four

FREE-RIDING DOESN’T PAY: Coca-Cola successfully appeals trade mark case A RECENT European trade mark decision between Coca-Cola Company (Coca-Cola) and Modern Industrial & Trading Investment Co Ltd (Mitico) has highlighted the importance of trade mark protection for the stylised elements of a trade mark, not simply the words.

This case involved Mitico filing a trade mark application in Europe for a stylised logo including the word “Master” with an Arabic word above it.

Mitico filed this application in a number of classes for a range of food and beverage products. Coca-Cola, who owns a number of trade mark registrations in Europe including various stylised representations of their logo, and a stylised UK trade registration, opposed the registration of Mitico’s trade mark.

The opposition was initially rejected due to the lack of similarity between Coca-Cola’s trade marks and Mitico’s trade mark application. Coca-Cola appealed the decision to the Second Board of Appeal and again it was found there was no likelihood of confusion arising between the signs. Coca-Cola again appealed the decision, this time to the General Court where the complaint was upheld.

While the lower Courts considered the marks to be dissimilar, and therefore there was no likelihood of confusion arising between the trade marks, the General Court took into account: 1. Similarity of the marks;

What this means for you….

Sophie Thoreau Senior Associate

Trade mark protection is the best way to protect your brand and act as a deterrent for third parties against using or seeking

Baldwins Intellectual Property

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2. Reputation of the earlier Coca-Cola trade marks; and 3. Whether use of Mitico’s trade mark would “take unfair advantage of, or be detrimental to, the distinctive character or the repute of the earlier [Coca-Cola] mark”.

The Court considered the similarity in the stylistic elements (or logos) for food and beverage products to play an equally, if not more important role than the word elements. Consumers of food and beverage products are considered to be persuaded more by the impression created from a product through packaging or labels than the words themselves. This increased the significance of the “tail” of the “M” and “C”, and the use of the identical fonts (which was considered an uncommon font in a business context). Both played an important role to the overall similarity of the marks.

Coca-Cola, having satisfied the Court of their reputation, was then able to provide the Court with evidence of the Mitico’s intended use of the trade mark: Mitico’s website provided highly persuade evidence of their intentions to free-ride on Coca-Cola’s reputation through use of the similar get-up and stylistic elements of the brand.

The similarity in certain stylistic elements, together with evidence of an intention to free-ride on Coca-Cola’s reputation ultimately led the General Court to refuse the registration of Mitico’s trade mark.

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Otago University researchers concluded plain packaging would only have an “uncertain but possible” impact on smoking rates. However, if the policy is not changing consumer behaviour then it is simply a cost for tobacco companies. One blogger, David Farrar from Kiwiblog, believes New Zealand should have a regional trial to monitor results before introducing plain packaging across the board.

Of course, plain packaging is unlikely until its legal status is clarified by a number of cases involving Australia, tobacco companies and tobacco producing nations. New Zealand has, in NARGON’s view, wisely decided to step back and see how these high-stake disputes pan out before committing to ourselves to a policy which may prove unenforceable. As a small trading nation, New Zealand has a vested interest in maintaining a robust international trading system.

There are signs that public health advocates and academics will look to intensify the fight against tobacco in 2015. Otago University professor

Tony Blakely said the Government needed to start thinking about more “radical solutions” if it was to reach the ambitious goal of a Smokefree New Zealand by 2025. The Nationalled Government has confirmed it remains committed to this target.

Mr Blakely has listed options included requiring smokers to have a tobacco licence, forcing tobacco firms to phase out nicotine, restricting tobacco sales to pharmacies, or subsidising less harmful alternatives such as e-cigarettes. He said a “business as usual approach” would not work, adding “we are going to need one of these extra radical [options] that has not been tried anywhere else. Even a packet of cigarettes costing $40 will not be enough,” he said.

The year 2015 will likely see a raft of key decisions made which will have a significant impact, one way or the other, on how tobacco is displayed and sold in New Zealand supermarkets. n

Trina Snow Executive Director NARGON

HONEST COFFEE COMPANY ESTABLISHED in 2013, Honest Coffee Company was founded by Josh Cole and Jayden Klinac, two university friends who saw a gap in the market for sustainable, biodegradable and great tasting coffee pods. After difficulties creating their own pod product, the entrepreneurs formed a relationship with Ethical Coffee Company’s JeanPaul Gaillard. An ex chief at Nespresso, Gaillard had left the multi-million dollar company to establish his own cheaper, green-friendly product, to which the pair have secured exclusive rights to distribute within New Zealand.

The Ethical Coffee Company’s pods not only produce barista-quality coffee, they are also produced from plant based materials and fit any Nespresso machine, they are so ‘green’ they adhere to strict to register a confusingly similar brand.

While plain word trade marks protect use of a trade mark in any format, and future proofs the marks against changes to the logo, this case highlights the added importance of protecting the distinctive, memorable visual elements of a trade mark separately.

In general, it is much easier to prevent a product reaching the market than to stop it once use has commenced, provided you have adequate trade mark protection in place.

We recommend carefully considering the unique and memorable components of your brand – these are the elements which create an impression and immediate brand recognition in a consumers mind, and the ones that may be targeted by those seeking to free-ride on the success of your brand.

For further information, please contact Sophie Thoreau. n

European regulations and are 100% biodegradable.

“Our main emphasis is on taste”, says Klinac, “This is great tasting coffee with packaging that biodegrades in 180 days.”

The Ethical Coffee Company’s classic pods are now stocked in four north island supermarkets and the superior range is available in Harvey Norman stores nationwide.

The Honest Coffee Company will be on the road this February with a travelling promo on the west coast where they will be educating consumers on the environmentally friendly product, offering free tastings and urging coffee drinkers to swap their traditional pods with Ethical Coffee pods, free of charge.

With five new sku’s to launch this year and a secured site for roasting their own beans, Klinac and Cole have big plans for Harvest Coffee Company’ future, while continuing to inform kiwi coffee drinkers it is possible to lessen their carbon footprint without having to sacrifice the taste of great coffee. n

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global

TROLLEY REDESIGN

AUSTRALIAN supermarket giant Woolworths have added drink holders to the handles of their shopping trolleys, as a way of increasing a more pleasant shopping experience for its consumers. A spokesperson for the company says Woolworths has introduced the cup holders as part of a redesign in their supermarket trolleys. They came about primarily as something to hold drinks for toddlers and were put there resulting from feedback directly from customers.

Woolworths is happy to add the feature for the convenience of our customers. Cupholders have subsequently been popular for shoppers to use for carrying drinks for themselves, including coffee.”

The new design has shoppers talking about more design options for their trolleys.

AUSTRALIA MEETS CHINESE MILK DEMAND

THE Australian milk industry is taking advantage of China’s addiction to Western powdered milk as a free trade deal with China slashes tariffs on dairy exports.

Demand for the western product has continued to increase since 2008, where a milk poisoning scandal in the communist country left six children dead and 300,000 seriously ill. Along with the milk poisoning scandal, a baby boom stemming from relaxation of China’s one-child policy, and a shift towards a more protein-heavy diet have all fuelled China’s demand for milk powder and other dairy products.

The value of New Zealand dairy exports to China since a free trade deal was signed between those two countries in 2008 shows just how valuable such deals are. New Zealand’s Fonterra Cooperative Group, the world’s biggest dairy exporter, estimates the Chinese market for infant formula will rise to AUS$31bn in 2017 from about AUS$17bn now.

Infant formula sales there have increased more than tenfold over the past decade in China and are expected to double again in the next three years.

Under the deal, tariff cuts have rendered Australia’s dairy market so attractive that even the country’s richest person, mining magnate Gina Rinehart, is investing in the industry.

The agreement, almost a decade in the making, put Australian farmers in general on a par with their New Zealand counterparts, according to Australian Trade Minister Andrew Robb. n

ONLINE OPPOSITION

AUSTRALIA’S biggest online retailer, Kogan.com, has entered the growing online grocery market with a promise to deliver product to the door for less. It launched last month with 600 branded products with some discounted more than 80% on rrp. Among the offers were Finish 20pk Qantum Powerball Dishwashing Tablets Ultra Shine for $8-90, Gillette Mach3 razors for $3-95 and SunRice long grain rice 500g (a 1kg two pack) for $1-57. A sample basket of 20 popular products showed a 50% saving over Coles and Woolworths. Shipping is capped at $9-99.

MENORA BUYOUT

AN Asian buyer is understood to be taking over Melbourne-based Menora Foods that is distributing supermarket products in New Zealand including the Peckish brand. The buyer is thought to be Monde Nissin Corp of the Phillippines.

BITTER MILK CABINET FIGHT

ALDI EXPANSION

MAJOR damage is being done to the retail milk industry in Australia as the corporate battles continue over pricing in the dairy cabinet. It is now four years since Coles first cut its private label milk to a dollar a litre and the fight continues. Industry data shows that both Lion and Parmalat have had their domestic brand sales sliced by around $175m a year and it is thought that one or the other may walk away from the market.

DISCOUNT operators Aldi continues to expand in Australia with new stores opening in South Australia and Western Australia this year and a number of potential new stores in the eastern states over the next five years.

Already the company has 367 stores turning over around $A6 billion and employing over 9000 people. In the South and Western states, up to 120 new stores are planned. n

SIAL CHINA

ASIA’S leading international food and beverage show will take place this year at Shanghai’s new International expo centre from 6-8 May and Review Publishing have announced it will be attending as an official media partner.

Among many signature food & beverage sectors, one of the highlights will be in the seafood gourmet sector. Rich in aquatic products from Korea, Thailand, Ireland, Australia and other countries, the seafood sector will be a spotlight to present the trends, products and gourmet in front of Horeca buyers.

With 2,700 premium exhibitors and 55,000 professional visitors from over 90 countries and regions, Sial China is where

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ONLINE SUPERMARKET SUCCESS DARK supermarkets are set to be the next big thing in grocery shopping in Australia. Woolworths opened its first, in Mascot, Sydney, last August, and is now considering opening ones in Brisbane and Melbourne. The facilities are distribution centres for online retail, setting up shop in key markets where online shopping is on the rise.

JLL industrial director Gary Hyland said the opening of the first dark supermarket was the start of a new trend which will impact on the industrial sector. “Dark supermarkets are a sign that the way consumers consume has changed, and continue to change,” he says.

“As a result, we will see dark supermarkets take up space in industrial precincts — particularly in warehouses close to key markets.”

The typical dark supermarket looks like a normal supermarket, a large

warehouse space packed with products.

Online orders are filled by personal shoppers who can work day or night shifts. Deliveries happen quickly; whether they are delivery serviced buying or the click and collect option.

“This gap between online retail sectors is closing — online food shopping has the momentum,” Hyland says. “According to data, Woolworths’ online grocery shopping app has been downloaded more than 3 million times and it has 4 million unique visitors to its site each month. This is a huge flag to fly for the future of online grocery shopping in this country.” n

AUSTRALIA’S EGG WAR

THE Australian supermarket war continues, with eggs the latest weapon in the battle to create differentiation in the minds of shoppers between Coles, Woolworths and Aldi.

Animal-welfare groups have put pressure on retailers to stop selling eggs from intensive or ‘factory’ farms and traditional or ‘caged eggs’ are fast disappearing from supermarket shelves, a trend stemming from the

latest Californian egg law, banning the production and sale of battery caged eggs.

Woolworths has agreed to ban all “caged eggs” from its supermarket shelves by 2017 and Coles has already removed eggs laid by caged hens from its own-brand range. The price of eggs is said to rise due to the ban, however, Aldi have stated it will continue to offer its customers a variety of eggs including caged eggs. n

professionals share big ideas to find great solutions.

The event will also feature the SIAL Retail & Hospitality Forum, La Cuisine by SIAL (endorsed by World Association of Chefs Societies); the latest food trends discovered at SIAL Innovation, inspiring business at SIAL Business Meetings and will be co-located with SIAL Wine World.

The organisers of SIAL China are offering special visitor delegation packages for groups of 10 delegates or more from member-based associations. The delegation leader will benefit from a free return flight to Shanghai and three nights’ accommodation during the show period. n

storecheck P‘nS, GLEN INNES

Heading to the Central East of Auckland I was able to visit New World, Pak’nSave and two Countdowns. First up was Pak’nSave Glen Innes. On arriving, a car park was easy to find despite being the middle of school holidays. Entering the store my first impression was very positive. This Pak’nSave had all of the extras – Petrol Pump, Lotto and best of all a Customer Toilet in the entrance. I did notice the floors looked quite tired and could have been cleaner. The in store signage was great, vertical signs clearly labelled were everything was. Shelves were tidy and fully stocked. The Deli was fresh and fully stocked but could have had more variety, particularly with the salads. A standout feature was a man on a microphone promoting the fresh food in the Bakery.

Wine had sections labelled under $15 and under $12 which limited the number of promotional tickets and displayed the wine in a tidy manner. Photo ID on all staff clearly visible and added another point of difference to this supermarket. There were plenty of checkouts open and I was served efficiently.

CD, ST JOHNS

A quick drive down to Felton Mathew Avenue took me to Countdown St Johns. Again parking was very easy, with plenty of parks available. The outside of the store was tidy and modern with trolleys neatly lined up. Inside the store, it was clean and bright with plenty of lighting. The produce section was large but some vegetables looked a bit old. This differed in the seafood section, where fish was fresh and well presented, although Salmon was relatively more expensive than the previous store. The aisles were well sized but made smaller by extended shelving stocked to overflowing with products on Price Lock Down. The temporary shelving made the store seem more like a Pak’nSave, catering for bulk shopping, rather than the average shop. Although shelves were overflowing in parts, there were a number of out of stocks and shelves were untidy.

The freezers were exceptionally clean, although needed to be restocked as well. Only one checkout was open, with the checkout operator directing the queue to the selfservice checkouts. Eventually another checkout opened and I was served in a friendly manner.

CD, MEADOWBANK

Countdown in Meadowbank was the next stop. The carpark was a bit tired and could have done with a few more trolley return bays. In saying that, it was large enough with plenty of parking available. Walking into the store my first impression was this store was dimly lit for a Countdown.

Heading through the produce the lettuce seemed limp but there were plenty of fruit and vegetables to choose from. I did notice the roast chickens were running low on stock heading towards the deli. Unfortunately the deli was also quite low on stock and the range of salads on offer were average. The wine had a lot of specials, although too many tickets which looked quite messy. A wide selection of magazines and cards, which were all neatly organised. A bulk bin section was available with a wide range on offer, all in a tidy state. Again this Countdown had temporary shelving spilling into the aisles for Price Lock Down. The shelving itself was drooping in parts and could have done with a tidy up. There were plenty of checkouts open and staff were efficient.

NW, EASTRIDGE

Lastly I visited New World in the Eastridge shopping complex. A huge car park with plenty of space made it easy to find parking. Walking into the store a range of products were on display just outside the entrance that seemed to be on special. I wasn’t too sure about having food products outside of the store in the heat, it did appear a bit disorganised also. Once inside the store it was cool and bright, which was needed on this hot day. The produce section stood out compared to the other stores I had visited. There was a great range, which was fresh and well stocked. The Deli section

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Visiting Auckland’s inner suburbs, our mystery shopper reviewed East Auckland this month with New World Eastridge taking out the highest STORE EXTERIOR

P’nS CD CD NW Glen Innes St Johns Meadowbank Eastridge

• Was the outside of the building and grounds clean, tidy free of rubbish and with adequate trolley bays? (5 pts.)

5

5

3

5

• Were the windows and exterior clean and tidy? (5 pts.)

5

5

5

5

• Was the signage well presented and up to date? (5 pts.)

5

5

5

5

• Were there enough car parks? (5 pts.)

5

5

5

5

STORE INTERIOR

P’nS CD CD NW Glen Innes St Johns Meadowbank Eastridge

• Were your first impressions positive?

(5 pts.)

5

4

3

4

• Was the floor clean and free of broken/damaged stock? (5 pts.)

3

5

3

5

• Adequately lighting/heating? (5 pts.)

5

4

3

5

• Instore signage clear adequate?

(5 pts.)

5

4

3

5

• Was there good visibility of promo/ seasonal products? (5 pts.)

5

3

4

3

• Was the floor free from unattended boxes/trolleys? (5 pts.)

5

5

4

5

• Were the fridges and freezers clean and tidy? (5 pts.)

5

4

3

5

STORE LAYOUT

P’nS CD CD NW Glen Innes St Johns Meadowbank Eastridge

• Were the aisles wide enough?

(5 pts.)

5

4

4

4

• Were all shelf edge labels clearly visible? (5 pts.)

5

5

4

5

• Were all shelves clean, neat and tidy?

(5 pts.)

5

3

3

5

• Was there an adequate number of trolleys/baskets available? (5 pts.)

5

5

4

5

PRODUCTS

P’nS CD CD NW Glen Innes St Johns Meadowbank Eastridge

• Was there a good range of products to choose from? (5 pts.)

5

4

5

5

• Was there full availability of products? (5 pts.)

5

3

3

4

• Was all product packaging in good condition? (5 pts.)

5

5

5

5

• Was there a good range of magazines and cards etc and were they tidy? (5 pts.)

3

3

5

5

• Were the batteries and general merchandise tidy? (5 pts.)

5

5

4

5

overall score. With a high standard of stores across the board, scores show there is still room for improvement from some in the area. was definitely the best of the day. A large variety of salads displayed on clean white platters. Behind the counter staff were dressed in chef hats, giving a professional feel to the Deli. The in store Butcher and Bakery were on par with the Deli, all food fresh and displayed in an appealing way.

The shelves were well stocked and a wide range available for a smaller store. The magazines were tidy and displayed effectively. The skin care aisle was brightly lit by large signage, giving a luxury feel to this section. I was served quickly and thanked for my transaction. It was hard to find fault with this store. n STAFF

P’nS CD CD NW Glen Innes St Johns Meadowbank Eastridge

FRESH FOOD

P’nS CD CD NW Glen Innes St Johns Meadowbank Eastridge

• Did the produce look fresh?

PRODUCE (5 pts.)

4 4 4 5

FISH (5 pts.)

5 5 5 5

MEAT (5 pts.)

5

3

4

5

DELI (5 pts.)

3

3

3

5

BAKERY (5 pts.)

4

3

5

5

• Was there a full range of produce?

PRODUCE (5 pts.)

5 5 4 5

FISH (5 pts.)

5 3 4 5

MEAT (5 pts.)

4

5

4

5

DELI (5 pts.)

3

3

3

5

BAKERY (5 pts.)

3 3 5 5

• Was the Fish Counter staffed? (5 pts.)

5 5 5 5

• Were all staff fully dressed in uniforms and name badges? (5 pts.)

5 4 4 5

• Were there adequate checkouts, considering the time of day? (5 pts.)

5

2

5

5

• Was there anything or anyone who stood out? (5 pts.)

• Were you greeted in a friendly manner? (5 pts.)

3

5

4

4

• Overall shopper experience (10 pts.)

8 7 6 9

• Were you served in a speedy and efficient manner? (5 pts.)

5 5 5 5

HOW THEY SCORE?

• Were you thanked for your transaction? (5 pts.)

5 5 5 5

182 165 Maximum available score: 200 pts

• Was the Deli Counter staffed? (5 pts.)

5 5 5 5 5 4 4 5

P’nS CD CD NW Glen Innes St Johns Meadowbank Eastridge 162

193 TOP SCORE

February 2015

I 17

categorycaptain COTTONSOFT LIMITED

PRICE & VALUE

Cottonsoft Limited is focused on sustainable category growth leadership with a balanced approach across existing and evolving segments and categories, according to Cottonsoft Limited Category Marketing Manager Malcolm Everts.

Cottonsoft owns the Paseo (Premium), CottonSofts (Mid-range) and KiwiSoft (Price Segment) brands in NZ. ‘WHILE the $168M Toilet Tissue category has sustained only 1.5% Value growth for the last 2 years (Aztec MAT to 21/12/2014), growth is coming from similar global consumer trends to other categories, with key drivers such as premiumisation & luxury, plus social & environmental factors influencing shopper decisions.

Value for money still remains the key dimension for consumers across all segments. As market leader in Toilet Tissue (28.1% Value Share, 34.3% Volume Share), plus with significant and growing presence in Paper Towel & Facial Tissues, Cottonsoft continues to develop fresh product and category innovation to lead sustainable growth.

Premiumisation and Luxury Trends

2013 1.5% 10.2% -0.9% -6.6%

3 Ply has grown 31% in the last year, while 1, 2 and 4 Ply have all declined significantly. This growth of 3Ply is consistent with other markets (including Australia) plus is a tribute to the key consumer attributes of Softness and Strength delivered by 3Ply over many lower price 2Ply offerings.

The Paseo Brand has been at the forefront of 3Ply growth with an average growth rate of 35.8%, the highest any significant premium brand.

VALUE GROWTH 1 Ply 2 Ply 3 Ply 4 Ply

2014 -19% -7% 31% -12%

Despite advanced manufacturing technology such as TAD (Through Air Dried) used in some premium

TOILET Tissue with softening lotions and infusions such as Aloe Vera are delivering up to 20% price premium in the UK. In fact up to 30% of the category in some UK retailers, including Private Label brands, now have lotion.

Paseo UltraSoft Lotion is on track to be the first product of this type available for sale in the New Zealand market, leading the

Though growth looks healthy, the price per roll in the Premium Segment has dropped over time, despite the inclusion and growth of longer rolls such as Double Length & Long.

SOCIAL AND ENVIRONMENTAL TRENDS

WHILE Toilet Tissue made from recycled paper grew to over $8million (Retail) in 2012, many consumers recognize the product quality compromises, such as softness and strength, don’t always add up vs quality virgin fibre.

In addition, the continuing industry focus on environmental certification for fibre sourcing such as FSC, PEFC & ECNZ give consumers and retailers alike increasing confidence in, plus knowledge about the sustainable sourcing of certified fibre and renewable plantations. (*FSC Forestry Stewardship Council, PEFC Programme for the Endorsement of Forest Certification, ECNZ Environmental Choice New Zealand) CottonSofts brand is now certified by both PEFC and ECNZ, plus in 2014 added their support to Beat Bowel Cancer Aotearoa via Sponsorship, media support and social media campaigns to raise funds and awareness.

Like other global brands that are making a ‘brand stand’ CottonSofts will be supporting a major initiative to raise awareness of Bowel Cancer in 2015. Bowel Cancer kills 4 times as many New Zealanders as the national road toll – tragic considering 75% of cases are curable if diagnosed early.

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Hygienic Wipes Growth Hygienic wipes could be considered the only current ‘UltraPremium’ or luxury range in the Toilet category. Wipes continue to grow fast from a low base, and are delivering well to key consumer attributes of softness and strength.

They are also supporting category development from being highly incremental, high value per pack and excellent shelf efficiency versus traditionally large bulky packs of toilet tissue.

VALUE GROWTH Hygienic Wipes

2014 62.4%

Aztec MAT to 21/12/2014

Alternative fibre products including Bamboo and Sugarcane are also on the market though remain relatively small.

LUXURY ON A GLOBAL SCALE

2014 1.5% 10.1% -3.2% -5.4%

Aztec MAT to 21/12/2014

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1Ply products, 1Ply has suffered Double digit decline in the past year.

Interestingly the launch of 4Ply has NOT enjoyed the same growth, possibly from the lack of additional benefits over 3Ply, though also from apparent issues with flushability.

Aztec MAT to 21/12/2014

The Premium segment of Toilet Tissue has sustained 10% growth for the last 2 years, while Mid-range & Price segments have both declined.

VALUE GROWTH Total Toilet Tissue Total Premium Total Mid-range Total Price

3Ply Growth

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THE decline of the low cost Price Segment is different to many other FMCG categories though is likely explained by the increasingly competitive pricing across what is widely considered to be a commodity category.

The Price Segment is dominated by the KiwiSoft brand which holds 2 of the top 3 skus by value and volume in the entire category.

To ensure KiwiSoft remains highly competitive, it has transitioned to a new paper specification that is 1GSM lighter, though retains both its softness and strength attributes.

It also retains the same sheet size and sheet count though enables a smaller roll diameter for the same length and width of paper. It now also sports the PEFC and recyclable packing logos on the front of pack.

In addition, the promotional frequency of KiwiSoft is increasing to ensure consumers can enjoy Famous KiwiSoft Value more often at even better prices.

Private Label Decline

way to a new evolution in Ultra Premium.

The caveat seems to be flushability and environmental dimensions whereby some products recommend flushing 1 at a time so not really optimising consumer convenience, let alone water conservation.

Recycled Decline From $8m in 2012, Recycled has suffered double digit decline since.

The decline has been the result of both volume and price declines.

RECYCLED Value (000) Growth

2013 2014 6,889 6,060 -17% -14%

Aztec MAT to 21/12/2014

Unlike many other categories, Private Label toilet tissue is actually in decline of 8.0% (Val), and has relatively stable share of 12.3%.

This may in part be due to the current absence of premium private label brand offerings in this category, evidenced by the significantly higher volume share than value share.

DOLLARS DOLLARS ROLLS GROWTH SHARE SHARE -8.0% 12.3% 16.8% Aztec MAT to 21/12/2014

Leadership in Sustainable Category Growth Cottonsoft limited has implemented a strong schedule of shopper, retailer and consumer activity that will support a balanced portfolio of growth and innovation over the next 3 years’. n

The softness of is evolving...

NEW

ENERGI/J15077

is here February 2015

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KIDS THRIVING WITH FRUIT IN SCHOOLS PROGRAMME RICHMOND PAK’NSAVE EXPANSION

EXPANSIONS to Richmond Pak ‘n Save have begun with the supermarket taking over the adjoining Powerstore building. The supermarket’s 750 square metre extension and new 620sqm loading dock which will be completed by the end of the year. Foodstuffs South Island property and development general manager Roger Davidson said the supermarket’s expansion was part of the company’s long-term plan for continued investment in the area and the community. “The Richmond area has been in growth for some time. The economy is quite buoyant and there is definitely confidence in the region.” The project would improve customers’ shopping experience, improve shopping flow and allow Pak ‘n Save to carry more products, he says. The supermarket will remain open during the expansion, no car parks would be lost in the development and disruption to customers would be kept to a minimum.

FOODEYE APP 100% POSITIVE IMAGES IN SPACE has released the Search by Endorsement function for the Foodeye App, offering consumers even more reason to use Foodeye as a shopping tool. Foodeye is a free mobile phone app developed by Images in Space, specialists and leaders in digital asset management for the FMCG industry.

The app allows consumers to take a closer look at their food by making the food ingredients and nutritional panels more accessible. Consumers can now readily compare nutritional and ingredient information across the thousands of food products, commonly

available in supermarkets throughout NZ. Foodeye has been keenly welcomed by mobile consumers with feedback to date 100% positive. Shoppers have reported they love the ability to compare and understand the products they are consuming by using the comprehensive Foodeye App and are now asking for even more information.

The search by endorsement function will allow shoppers to refine a search, not only by brand, category and nutrient filter but also by endorsements such as the Healthy Heart Tick or Coeliac Crossed Grain endorsement. There are a total of 108 endorsements catering to the growing number of consumers with specialised food, community or ethical interests. n

FOR 10 years, United Fresh New Zealand Incorporated has been helping Kiwi kids get a healthy head start, through the Fruit In Schools programme.

Around 480 low-decile primary and intermediate schools participate in the programme, which promotes healthy eating by offering students a free piece of fruit and/or vegetables each school day.

The programme in New Zealand is a private/public partnership funded by the Ministry of Health.

An independent evaluation of the programme has now shown what principals think of the scheme and how it is affecting nutrition and healthy eating habits. The results are remarkable.

Ninety-eight percent of principals say that because of Fruit In Schools children know more about nutrition and health; 74 percent say children are concentrating more in class; 66 percent say students’ general health has improved; and 46 percent say there are fewer behaviour problems at school.

In the survey, principals explained the fresh produce provided “brain food” that helped children to concentrate and stay on task.

Seventy-two percent believed that if the programme stopped, academic outcomes would suffer.

Almost 90 percent of principals believe that as well as the direct benefits for students, and the creation of healthy eating habits, the programme also provides a range of learning opportunities.

For example, students are learning how to cook and prepare food, are able to recognise and name different fruit and vegetables and because fruit monitors are required, they develop leadership skills.

Although oral health was not an initial focus of the Fruit In Schools programme, 40 percent of principals

say the programme has triggered or supported oral health initiatives, such as giving toothbrushes to children.

Overall, 30 percent of principals have seen improved dental health and hygiene as a result of the programme.

Fruit In Schools is clearly helping in the classroom, and is also being felt beyond the school gate.

Principals said the programme was having a positive impact on the children’s home environment and parental behaviours. For example, 44 percent of principals said ‘many families’ were providing fewer sugary drinks and less junk food in school lunches.

Overall, principals value the programme highly and believe it is beneficial for the school and wider community.

The programme is also good for fruit and vegetable growers, as it helps to create the fresh produce enthusiasts of the future. All the principals say Fruit in Schools helps to make pupils and staff more aware of the importance of healthy eating and helps children feel positive about eating fruit and vegetables.

We predict a healthy future for this wonderful initiative, which has been driven by the produce industry and United Fresh members.

And at a time when the World Health Organisation is warning that child obesity “is in danger of becoming the new norm,” teaching about healthy eating in schools is absolutely essential.

We hope the Fruit In Schools programme will continue to help children lead healthy, active lives. n

David Smith United Fresh www.unitedfresh.co.nz

SURF LIFE SAVING SUNSCREEN

UNCOMPROMISING ENERGY New Zealand Agent: House of Fine Foods Ltd, Auckland Email: wayne@houseff.co.nz

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THE Surf Life Saving sunscreen range has seen a growth in sales around the country this summer and has been getting some great media exposure with an active campaign in the Coromandel region. Surf Life Saving sunscreen is designed to offer one sunscreen that is suitable for the whole family, the products are manufactured in Australia, meeting New Zealand standards and formulated to suit the kiwi climate.

There are six variants in the range with a percentage sales donated to Surf Life Saving New Zealand.

Surf Life Saving New Zealand CEO Paul Dalton says this season around 4,000 volunteer lifeguards will spend over 200,000 hours keeping a watchful eye on over 80

beaches throughout the country, helping to make them a safer place for Kiwis and their families to enjoy their summer. “We are an essential rescue service as well as a charity and we need the public’s support to raise money to help lifeguards save lives on New Zealand’s beaches this summer. The funds raised from the sale of the Surf Life Saving sunscreen directly helps support the efforts of our volunteer lifeguards in helping keep Kiwis safer on our beaches around the country”, he says.

“While swimming between the flags is our core message, we also ask that people are prepared before heading to their favourite beach and this includes wearing sunscreen to protect yourself from the sun.” n

h&baisle SUPERSTAY ADDS TO RANGE

L’Oreal’s Maybelline New York has increased its SuperStay range, launching 14hr Megawatt Lipstick - With brightly charged pigments and a new lightweight formula, the super rich coloured lipstick with super staying power promises 14 hours of breathable colour with no dullness or drying. Available in 12 long-wearing shades.

ANATOMICALS LATEST SCRUB

NEW GARNIER MICELLAR WATER

AN Internationally successful cleanser that captures skin residue like a magnet, Garnier Micellar Water captures and lifts dirt away from the skin and represents a new generation of cleansing that delivers a 3-in-1 solution – removing make-up and impurities from your face, eyes and lips while cleansing and soothing.

With its magnet like formula, there is no need to rub to remove impurities and make-up. Micellar Cleansing Water leaves skin perfectly cleansed and refreshed skin without rinsing and delivers the equivalent to 200 applications in a 400ml maxi bottle.

The Seven Deadly Skins Melon Body scrub is the second fruity body scrub from British company Anatomicals. Designed for both men and women, the fruity smelling scrub contains melon and uses pumice exfoliates to ensure sensationally smooth skin.

MATTE FINISHED SKIN

ADDING to its successful Baby range, Loreal’s Maybelline New York has released Baby Skin Pore Eraser. Used as a primer under make up, or by itself to smooth skin tone, the light weight and breathable gel uses a combination formula of silicon elastomer and antioxidants to moisturise and smooth skin in a matte finish. Non-comedogenic and fragrance free, the Skin Pore Eraser is suitable for all skin types.

NEW SHADE FOR MAYBELLINE L’Oreal’s Maybelline New York has released a new shade in its Light-Catching Eye shadow range – Luminous Nude. Infused with primer and micro-fine pearls the shadow delivers a light-catching result to instantly widen and brighten eyes. The range includes five colour variants, each containing three coordinating shades plus a primer with a step by step application guide. This is the brands first shadow which uses primer to conceal as well as highlight the eye.

MACLEANS NEW OFFERING

Available in two variants, Original and Whitening, Macleans Multi Action is produced with 8 key benefits. The toothpaste is boosted with minerals for strengthening enamel and purifying breath. So the family gets all-round protection.

With a fresh mint flavour, sugar acid protection provided by fluoride creates a shield that protects the tooth surface against sugar acid attack and is available in 120g and 170g sizes.

LYNX INTRODUCES HAIR RANGE

TAPsPP5881

Lynx has followed up a series of ads promoting its styling and shampoo range with a new campaign which aims to inspire men to experiment with the new Lynx hair products and ‘make the most of your hair. Lynx marketing director Jon McCarthy says, “Lynx Hair is all about helping guys get the look without any of the fuss. The new range makes hair care and styling simple for guys and that’s what we’ve tried to communicate in the spot, in our usual entertaining style”.

Variants to the new hair range include; ‘Clean Cut’, ‘Messy Look’ and ‘Natural Look’, all bringing a different image and feel to the table.

ANATOMICALS ADDS TO RANGE

Not Another Rough Day Please is a new vanilla body lotion from the cheeky British skincare company Anatomicals.

The creamy all-over body moisturiser absorbs quickly, conditioning and smoothing skin and preventing dryness while leaving a subtle vanilla scent. The product contains vitamin E to help protect and repair the skin and is infused with vanilla bean extract.

Bio-Oil TV Campaign 2015 ®

Starts 1 March for 4 weeks.

Be prepared, stock up with Bio-Oil now!

Talk to your BDM Grange Area Manager for more detail or call 0800 804 711.

Bio-Oil is STILL New Zealand’s #1 selling scar and stretch mark product.* It is a multi use product that is not affected by seasonal fluctuations so provides year round category growth within skincare.

Aztec Data, MAT 7/12/14

*

February 2015

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Z ENERGY LIMITED

Since the purchase of Shell’s operations in April 2010 by Infratil and the New Zealand Superannuation Fund, Z has emerged as a local business success story.

A SUCCESSFUL rebrand in May 2011, brought the major international energy brand into Kiwi ownership and Z now has 211 national sites supplying a third of New Zealand’s total transport fuels to airlines, shipping companies, commercial and retail customers. Four years on, the company has listed on the New Zealand and Australian stock exchanges, establishing themselves as New Zealand’s most preferred fuel brand.

The distinctly Kiwi brand pride themselves on difference. “How we go about doing business is different, the culture we aspire to is different and how we invest in our people and local communities is different”, says Z corporate communications Advisor Julie Malcolm. Before the company rebranded, and in the largest piece of research conducted in the sector for decades, Z asked 17,000 New Zealanders what they were after from the new brand. Research showed a demand for a distinctly New Zealand company, with a focus on community, national infrastructure and sustainability.

“Asking our customers what they want, instead of delivering what we think they

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want makes us really distinctive” says Malcolm.

Each year, every Z station around the country contributes $5,000 to charitable organisations and community groups in its neighbourhood. A group of locals, led by the retailer, will choose four local organisations and customers get to vote for which one matters most to them. The company call it ‘Good in the Hood’. After a month, $4,000 will be split between the organisations as per the customers’ votes, and the remaining $1,000 will be used to support other neighbourhood projects throughout the course of the year.

Z chooses to focus on charities and local groups by initiative rather than brand recognition and will often turn down nationally sponsored events.

Looking to increase its food and drink offering, Z are currently trialling FroYo GoGo, frozen yoghurt stations, at sites across the country. “We’re committed to delivering food options to our customers that go beyond the standard sandwich, pie and coffee offering, while remaining customer friendly and unique in our industry”, say Malcolm.

Z have recently launched an exclusive

OWNED

limited edition pie with the help of well known kiwi celebrity chef and food writer, Chelsea Winter. “We reckon when our customers are on-the-go, our convenient location and fast, friendly and hassle free service will be just what they’re looking for.”

Over the last 12 months, Z’s focus on executing its long-term aspiration has primarily centred on providing clarity of what that aspiration means to its customers. “We continue to build brand awareness by becoming well-known for the things that matter.” says Malcolm. n

Z ENERGY EXCLUSIVE PIE OFFERING Z ENERGY and bestselling cookbook author and food writer, Chelsea Winter, have collaboratively created a limited edition Gourmet Moroccan Lamb pie exclusively for Z Energy. Available at selected Z stations from 26 January until 22 February only, the gourmet creation contains a mix of ingredients including lean, tender lamb, apricots, tomato, chilli, onions, garlic, ginger and a range of herbs and spices. Z’s Convenience Retail Manager, Glen Nixon, says that Z was excited to partner with one of New Zealand’s favourite cooks. “We wanted to give our customers a taste of something

deliciously different, and Chelsea is an obvious choice to help us with that. She’s authentic and refreshing and a great fit with our values. Her food isn’t fussy or pretentious – it’s simply good food!” n

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NEW ALCOHOL LAWS FIND THEIR TEETH IN 2015

DB’s Matt Wilson takes a look at upcoming regulation that will affect how supermarkets sell alcohol and potential impacts on the market THIS year marks the completion of several key pieces of regulation introduced in the past few years and will influence the way alcohol is sold and marketed in New Zealand.

In 2015, single alcohol areas in supermarkets will become more prevalent, Local Alcohol Policies will be finalised (impacting trading hours) and packaging changes are on the horizon.

Single “alcohol areas” in supermarkets began to appear in 2014 but will pick up the pace now as a greater proportion of supermarket liquor licences come up for renewal.

By the end of the year, single alcohol areas should be more the norm than the exception.

The removal of aisle ends and wider store displays will have a clear optical impact on the shopper experience but it remains to be seen what impact it will have on sales.

Depending on the final store layout, single alcohol areas may also affect the variety of products ranged, with stores forced to rationalise SKUs to fit the single area. The likely losers here are

single bottles and slower sellers that will not be able to justify their place on the reduced shef space.

Long term, this may lead to supermarkets focusing almost exclusively on bigger pack sizes (sixpack and up) of the most popular brands; 2015 will give a good indication if this is indeed the future.

Key Local Alcohol Policies (starting with Wellington) will be finalised in 2015, which will impact store numbers and opening hours. Regions that offer the greatest flexibility may attract future investment but the suspicion is that Local Alcohol Policies have become more of a soapbox for Councillors than a practical tool that will materially impact alcohol related harm.

As discussed previously, a Licence Committee’s real weapon with regard to improving the standard of licence holders is the amenity and good order test. Unfortunately, this continues to be largely misunderstood and underutilised.

The Government has said that it will announce its position on

the Ministerial Forum on Alcohol Advertising and Sponsorship mid way through this year. At the end of 2014, this group recommended further restrictions including a ban on alcohol sponsorship of sporting, cultural and music events as well as additional limits on external advertising of licensed outlets.

Given supermarkets are already unable to advertise alcohol anywhere other than within the alcohol area, this will have little direct impact on stores. Whilst the basis for the recommendations is debateable (the Forum were unable to provide a cost/benefit analysis of their recommendations), no one debates the stated objective – protect the young from alcohol related harm.

Ministry of Justice officials might smile at this given the inclusion of a new offence in the recent Sale and Supply of Alcohol Act 2012 for advertising alcohol in a manner likely to appeal to minors.

This offence has only been in existence for little over a year but, to my knowledge, there have been no

prosecutions to date. That indicates that either the Police are still getting to grips with their new powers or that they do not agree with the Forum’s belief that there is a material body of alcohol advertising unduly appealing to minors.

Further out on the horizon, the inclusion of kilo joule (calorie) information on the packaging of alcoholic beverages remains on the Government’s potential agenda, as does the ongoing debate around sugar.

Most of the calories in alcoholic beverages come from the alcohol itself, so the higher the alcoholic content, the higher the amount of calories (for instance 100ml of 5% beer has around 50 calories compared to around 80 calories in 100ml of 13% red wine and 235 calories in 100ml of whisky).

Beer drinkers might be surprised to learn that most beers contain very little sugar (most are somewhere between 99% and 99.9% sugar free), although wines and ciders do not fare so well due to the natural sugar content of the grapes, apples and pears. As for whether this information benefits consumers and is indeed mandated – only time will tell. n

Matt Wilson Corporate Relations Manager DB Breweries Ltd

Working in partnership with Loscam to reduce Supply Chain costs Peter Sutcliffe

Supply Chain Manager

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newproducts KING ISLAND CHOCOLATE COCONUT WATER THE latest addition to the King Island family, Chocolate Coconut Water is dairy free, gluten free, Non-GMO and can be drunk hot or cold. Adding 10% coconut milk gives the drink a new creaminess backed up by an authentic chocolate flavour. The sugar level is only marginally higher than the natural coconut water and is sweetened with coconut sugar. Chocolate coconut water has attracted high numbers of new consumers to the category in established markets in Europe and North America. n

NEW CLUB CHEDDAR RANGE FROM MOONDARRA THE MOONDARRA Club Cheddar range features a creamy texture with a developed flavour, making it the ultimate in versatile cheeses. Made using only the freshest ingredients combined with a special recipe, Moondarra Club Cheddars

EDMONDS LAUNCHES CAFE CREATIONS RANGE ICONIC brand and Kiwi favourite

Edmonds, has launched a Cafe Creations range consisting of three new baking mix products; Salted Caramel & Chocolate Cupcakes, Raspberry & Chocolate Layer Cake, and Rich Chocolate Fondant. The products are easy to make, using the finest quality ingredients with no artificial colours or flavour, allowing consumers to enjoy an indulgent cafe experience at home. n

NEW EDITION FOR FARRAH’S

SPECIALITY bread makers Farrah’s have introduced a Chia and Quinoa wrap, a great way to incorporate these popular super-grains into a healthy and easy-to-prepare meal. The new Chia and Quinoa addition is the eighth flavour variant in the company’s wrap and like the rest of the range, they now come in an engaging new packaging design that expresses quick to prepare, flexible and tasty eating. The new packaging has vivid food photography and recipes with wraps to inspire shoppers to embrace the range using fresh ingredients. n

NEW BITE ME BITES ORIGINAL FOODS have added Bite Me Bites to its range.

Bite Me Bite’s consist of 14 delicious bite sized pieces of slice packed into a convenient reclosable container. The bites are available in four flavour variants; cookie caramel, ginger, gluten free brownie and lollie. The Bites are delivered frozen to stores and have a 21 day shelf life once thawed. Bite Me Bites are Halal certified with no added preservatives. n

are produced with gluten free and non-genetically modified ingredients.

The range consists of four flavours, Balsamic Vinegar & Onion, Chilli Club, Lime and Cracked Pepper and Classic Cheddar Club. n

INDULGENT LOW CARB TREATS

HORLEYS have introduced two new offerings to their in-store range, the new Carb Less Delight bar and Carb Less protein shakes. Available in five flavour variants, the Carb Less Delight bar is layered with soft nougat and chewy caramel, each bar contains 9 grams of protein and only 1.5 grams of sugar. The Carb Less protein shake is available in two 250ml flavour variants, iced latte and chocolate, and is packed with 18g of NZ milk proteins, 6g of fibre and 5g of carbs.

The perfect portion size for between-meal snacking. n

ANZAC DAY BISCUIT OFFERING ACTION Food Marketing Group are launching its Anzac biscuits offering this year in new commemorative

tins in the lead up to the 100 year anniversary, as well as two new flavor variants of the kiwi favourite.

The new variants will make up a range of three, available in 180g packet offerings and include chocolate squiggle Anzac and Cranzac, which includes cranberries as well as the traditional Anzac biscuit.

Commemorative tins will be available in a 360g variant. n

LOVE CAKE ADDS TO RANGE

Love Cake has expanded its baking range to include a selection of allergy friendly baking essentials, allowing its customers to get even more creative in the kitchen. As part of this range, Love Cake have introduced an egg substitute, simply mix two teaspoons of egg substitute with two tablespoons of liquid, blend until thick and fluffy and add to the recipe as you would eggs. n

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TIC TAC FRUIT ADVENTURE HEILALA VANILLA

NEW Zealand’s globally recognised premium vanilla company, Heilala Vanilla, now has 100% pure virgin coconut oil in their range, cold pressed with a true coconut taste and aroma.

Produced in partnership with the Tonga National Youth Congress, and supported by Oxfam New Zealand, Heilala Virgin Coconut Oil is made using fresh coconuts sourced from Heilala certified organic growers in Tonga. n

TIC TAC has added a new addition to its range, Tic Tac Fruit Adventure.

Combining four of the best loved flavours into one pack, the flavours include passionfruit, cherry, apple and strawberry.

Sure to revitalise your mouth and the mint category is this multicolour, fun combination in one handy pack. n

newproducts GRANDPA EXPANDS RANGE

PREMIUM bacon brand Grandpa’s has undergone a facelift to mark its newly expanded range of high-end bacon products. The expansion sees quality cuts of Streaky and Middle Eye join the brand’s established Shoulder, Middle, and Dry Cured Middle SKUs. The Grandpa’s brand has been developed by Hobson’s Choice Meat and Bacon Company, a 100 per cent New Zealand owned small goods company, operated by the same family for over 20 years. “Grandpa’s bacon is the result of more than two decades of producing and refining our bacon recipes,” says general manager Graham Curd. “We’re confident that Grandpa’s new range is the quality product New Zealand bacon lovers have been waiting for.” n

PURE ORGANIC ALMOND MILK PURE Harvest is launching its unsweetened organic almond milk to partner its ‘Original’ offering. The new product was specifically developed for the New Zealand market and offers great value with 8% almond content, 3 times higher than the industry standard of 2.5% which means it delivers on taste and nutritional value.

Pure Harvest call it ‘Activated’ because organic almonds are soaked in the traditional manner and this sets off a germination process that brings the ‘nut to life’. n

WHITESTONE 3 CHEESE OFFERING

ARTISAN Oamaru cheesemaker Whitestone has just released its new 3 cheese selection The instant cheese platter, which complements Whitestone’s 4 Cheese Selection, features the company’s award-winning Windsor Blue alongside Totara Tasty and a creamy Brie. “Matching cheeses for a platter can be a science and we’ve taken the effort out of the process with this new selection,” Whitestone CEO Simon Berry says.

The mix of the soft white mould Brie, with a vintage Totara Tasty and the Windsor Blue, provides a balanced amount of variety in flavours and textures” says Berry. “We’re working hard to make it easy for people to try our different styles of cheese and this selection is part of that initiative.” n

KECAP MANIS EVERY DAY SAUCE KECAP manis sweet soy sauce has gone from an ethnic Asian sauce to an everyday pantry item, with its popularity following the uptake in Mie Goreng instant noodles. Kecap manis is the dark, sweet sauce in the 5 pack sachet mix that adds depth and authenticity of flavor to the dish.

It is the balance of a naturally brewed soy sauce & the rich dark palm sugar that sets the standard of Kecap Manis. A good brand (such as the world famous ABC) is very smooth, offering robust flavour notes with very little saltiness in a thick sauce.

Many stores have been carrying ABC’s 275ml PET bottle, but now the company is offering a PET 600ml with only 6 bottles in a shelf display carton. This allows stores to carry multi sizes without a high quantity of bottles. n

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productwatch

How delightful!

New from Horleys Carb Less Delight bars • • • •

Call 0800 HORLEYS info@horleys.com

or speak to your KML representative

To Order: Will Jones will@origfoods.co.nz or 021 865 663

productwatch

productwatch

•

low sugar high protein deluxe layers of caramel & nougat perfect for body conscious snacking friendly price point

• 14 delicious bite sized pieces of slice packed into a convenient re-closable container and in 4 yummy flavours:

- Cookie Caramel

- Ginger

- Gluten Free Brownie

- Lollie • Delivered frozen to stores, 21 day shelf life once thawed • Made using premium ingredients • Halal certified • No added preservatives

NEW TO OUR RANGE!

E

GL

E UT N

FRE

This delicious new Gluten Free range of “mix & bake products” includes Bread Mix, Muffin Mix, Banana Bread, Vanilla Pancake and Chocolate Mudcake all manufactured in dedicated gluten free premises.

Freephone Farmers Mill 0800 688 717 HOMEBAKE-GLUTEN FREE 79 Elginshire Street, Washdyke, Timaru South Canterbury, New Zealand Freephone 0800 688 717

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a100% natural sweet kumara goodness aGenuine Kaipara grown kumara aHand cooked in high quality rice bran oil aGluten, dairy and MSG free Each bag contains a seasonal medley of 100% Kaipara Kumara – Red Kumara (Owairaka), Gold Kumara (Toka Toka) and Orange Kumara (Beauregard).

To order contact your Alliance Marketing Representative phone (09)263 9466

productwatch

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Gluten Free home baking

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ABC – SWEET SOY SAUCE Also known as kecap manis Essential Sth East Asian pantry item All-purpose sauce for marinades, stirfrys, dipping

For more information on ABC products contact:

ORIENTAL MERCHANT (NZ) LTD Tel 0800 10 33 05 Fax 0800 10 33 11 Email: nzenquiries@oriental.com.au Website: www.oriental.com.au

!

W E N

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Now available in a 600ml PET bottle with SRP for 6 bottles • for easy shelf display

Low carb Low sugar Low fat High protein High calcium Made in NZ Shelf stable bottle NZ dairy protein formulations

Call 0800 HORLEYS info@horleys.com

or speak to your KML representative February 2015

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productwatch

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From Horleys, the functional nutrition experts

THE DIFFERENCE BETWEEN THE GOOD AND THE BEST

Sign up now for our weekly e-newsletter

www.supermarketnews.co.nz

MANAWA HONEY NZ

TAIHIKI ORCHARDS

FOUNDED in 2011 by the Tuhoe Tuawhenua Trust, Manawa Honey NZ launched its first honey range in 2013. The trust initiated honey production as a way of aerial farming difficult land without leaving a detrimental impact on the ecosystem. With no previous experience in food manufacturing, Manawa Honey NZ started with 50 hives and very little experience. The company now specialises in Unique Mahoe honey, which comes from the New Zealand native, Mahoe tree. Manawa Honey NZ CEO Brenda Tahi, says the company is growing its business in tandem with the development skills of its people, from bee-keeping to branding.

“We are artisan producers of native floral honeys from a single source, the prevalence of Mahoe in our forest allows us to produce this honey unique to our region,” says Tahi. The honey is available in 250g, 500g and 5g snap-paks and three variants including Mahoe, Manuka and Tawari.

The company harvests its honey from hives kept in the Te Urewera region and extraction and packing is contracted to companies based in Rotorua and Auckland.

Manawa Honey NZ is currently sold online and in selected fine food store and delicatessens throughout the country.

“People want interesting and high quality food that they can trust, produced with integrity and that tastes fabulous. Better still, a product that comes from an interesting or unique place. This is our honey, from Te Urewera,” says Tahi.

For more information please visit: www.manawahoney.co.nz

AUCKLANDERS Natalie and Wayne Gardnier were originally looking for a lifestyle block when they purchased Taihiki orchard in 2009. The orchard already had a strong US export market for its figs and the Gardiners continued with this. In 2011, with no previous experience in food manufacturing, the Gardiners decided to expand their offerings as a way of utilising figs that weren’t export quality, after 10 months of experimenting and testing, Tahiki Orchards began producing NZ Figs’ four products; fig and date chutney, fig and ginger jam, fig vinaigrette and figs in syrup.

Currently Natalie and Wayne are the only two staff working in the company, handbottling and individually labelling each jar or bottle, although the intention is to continue with export and expansion.

“We use our own fresh figs, so we know the fruit is of the highest standard. We are also very generous with our fig amounts - you will notice a lot of figs in our products” says Natalie.

For more information please visit: www.nzfigs.co.nz

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EVOLVE KOMBUCHA EVOLVE Kombucha is a familyowned business started by mum and daughter team, Trisha and Megan.

Trisha discovered kombucha in 1998 while living in California and began making it for family and friends. Returning to New Zealand, Trisha began refining and improving the recipe for her drink until she made a brew she knew she could sell.

Leaving her job in Community Development, Trisha began the production of Evolve Kombucha, selling the drink at local farmers markets and health food stores. Megan had quit her job in the Health Sector to be a full time mother and also came on board with the business. “Our family has always loved good food and been passionate about healthy living. We have explored with a few small scale projects, always healthfood related and organic – raw candy, sunflower sprouts, a health food co-op, and others. In our passion for excellence, we have reinvented the kombucha brewing process.” Trisha says. “This delivers a fresher, cleaner and richer taste than other kombucha brands we have tried.” The unique process also provides an optimal environment for highest possible probiotic content.

Evolve Kombucha is available in two sizes, a drink-to-go 300ml and a family sized 750ml.

The drink is brewed and bottled by hand, using only whole, organic and unrefined ingredients.

For more information email: evolvekombucha@gmail.com

With no previous food manufacturing experience, the couple have always loved seafood and have been harvesting and smoking their own for quite some time. “After a couple of kina seasons we decided it was too labour intensive. We had built a smokehouse to smoke the eels so we decided to add to our range by smoking fish, we try and source all our fish from local fishermen, if not caught by ourselves” says Nichola.

Gurnard, terakihi, trevally and snapper are caught by Hamish, using the sustainable long-line fishing method and harvest eels from northland streams and rivers, ensuring premium export quality fish. The smoked products are smoked using a manuka-fired smokehouse and is tended to every hour to ensure the highest quality product and superior taste preservatives.

Apatu Aqua’s smoked seafood products are all packaged in random weight bags varying from 100gm to 350gm. Vacuum-packed, they have a shelf life of 28 days, and are naturally delicious.

For more information please visit: www.apatuaqua.co.nz

APATU AQUA HAMISH and Nichola Apatu founded Apatu Aqua in 2005. Based at Coopers Beach in NZ’s far north, the family owned and operated business produces quality artisan hand-smoked seafood and pate which is 100% natural and 100% preservative free.

February 2015

I 31

2015 New Zealand Grocery Industry

BUYERS GUIDE update 180DEGREES Contact: Jill Seton Ph: 09 818 7026 Fax: 09 818 7027 E: jill@180degrees.co.nz www.180degrees.co.nz

HONEST COFFEE COMPANY 15 Dilworth Avenue Remuera Auckland Contact: Jayden Klinac Ph: 027 318 8998 E: jayden@honestcoffee.co.nz www.honestcoffee.co.nz

BJ BALL 121 Hugo Johnston Drive Penrose, Auckland Contact: Simon Yandall Ph: 021 655 138 E: simon.yandall@bjball.co.nz www.kleenco.co.nz KML RETAIL MANAGEMENT SERVICES PO Box 35 011 Browns Bay Auckland Contact: Andrew Clyne Ph: 09 475 0940 Fax: 09 478 2908 E: andrew.clyne@kml.net.nz

FARRAH BREADS LTD 12 Shakespeare Avenue Trentham, Upper Hutt ˘ Contact: Jovan Canak Ph: 04 934 3829 Fax: 04 976 3829 E: info@farrahs.co.nz www.farrahs.co.nz

Contact: Paul Taylor, Business Development Manager DDI: (09) 475 0922 Mobile: (021) 843 315 Email: paul.taylor@kml.net.nz www.kml.net.nz

lastword

LIKE a few on the supply side, we managed to get away over Christmas and made our annual contribution to the American economy in Las Vegas and Hawaii. My lovely caregiver discovered a pear version of Grey Goose vodka while in the States and has been trying, to no avail, to find it in New Zealand. It certainly did the trick because she complained with a giggle that her lips had gone numb after two straight martinis. That was the same night that she thought Cooking and Bonking were two cities in China.

THE industry had its usual little mini-boom with back to school activities this month. Which reminded me that some of us guys never appreciated a lot of stuff at school. Little things like being spanked every day by a middle-aged woman – stuff you pay good money for later in life.

MY rant of the month just has to be about using the internet to track down company contact data. Hardly anyone uses the

I

supermarketnews.co.nz

ORIENTAL MERCHANT (NZ) LTD PO Box 22506 Otahuhu Auckland Contact: Chris Hutton Ph: 09 259 0550 Fax: 09 259 0552 E: chrish@oriental.com.au www.oriental.com.au

PIONEER FOODS LIMITED Unit 34, Storage Solutions 1 Broken Hill Road Porirua, Wellington Contact: Richard Beauchamp Ph : 027 442 7241 Fax: 04 237 0820 E: Richard@pioneerfoods.co.nz www.pioneerfoods.co.nz

PACIFIC BRANDS UNDERWEAR GROUP 308 Great South Road Greenlane, Auckland Contact: Customer Services Ph: 0800 800 390 www.pacificbrands.com.au

Peter Mitchell

WELL, those holidays are over once again which reminded me that Santa Claus has the right idea – only visit people once a year.

But welcome to 2015. May your troubles be less, may your blessings be more and may nothing but happiness come through your door.

32

LEWIS ROAD CREAMERY Ph: 0800 539 477 E: enquiries@lewisroadcreamery.co.nz www.lewisroadcreamery.co.nz

100%

OWNED

phone books these days so its just ridiculous that at least a third of suppliers with websites (obviously made in house) simply fail to give an address or a phone number. In the rush of enthusiasm to talk about product, it should be a simple thing to check contact details – check yours just to be sure and don’t assume it’s all there.

A TEDDY bear was working on the building site of the New World at Browns Bay and went off for a tea break. When he came back, he noticed his pick had been stolen. The angry bear reported it to the foreman who said: “Oh, I forgot to tell you, today’s the day the teddy bears have their pick-nicked…”

INTERESTING that the media is devoted to reporting confectionery issues. Cadbury has recently cut the size of its chocolate blocks in preference to running a price increase and got a lengthy admonition in the dailies (which Jac Evison

handled well). It’s a peculiar thing that the same lengthy attention is never paid to any other product that lessens content for the same reason. Our cracker of the month is the Tip Top ice cream sandwich/slice that used to fit the standard pink biscuit – now they are using mini-biscuits in the pack.

IT’s also interesting that the Government is about to approve the importation of irradiated peaches, apricots, apples and a list of other fruit and vegetables from Queensland and most of us don’t know it’s happening. And it seems that both Governments want to drop the requirement to label the products as such. Truth is it’s a pretty safe sort of operation despite being more emotional than risky – the only thing we do know is that about seven years ago about 80 cats died or became ill after eating irradiated cat food. I trust the experts that this won’t happen to humans but just wish we had of known about the move earlier.

Presumably it’s all off-season to our crops anyway.

LOVED the prayer from a little six year old just before Christmas – one that amused his Mum. It was a simple prayer for his grandfather: “Dear God, please send clothes for all those poor ladies on grandpa’s computer …”

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