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editorialcomment Invaluable Global Network Tania Walters Publisher
Undoubtedly visiting overseas exhibitions is an excellent research opportunity and every company should be sending someone from the team. Being able to look at upcoming trends in product development, equipment and packaging are invaluable. The team here at SupermarketNews is fortunate to have access to a global team of journalists from 32 countries who write for b2b grocery magazines, similar to SupermarketNews, in their home country. We brainstorm with them, sharing ideas and information at a level previously unheard of in the global grocery industry and certainly in publishing circles. This sharing means that we are able to keep you up to date with the latest
global trends, news and developments. Part of this collaboration means that if you require information about a particular market, we are able to help. This month we look at ISM, the world’s leading trade fair for sweets and snacks. ISM represents the entire industrial value chain and this fair is a successful combination of impulse and innovation, with great networking opportunities that turn Cologne into a hotspot for the industry. For those attending the various exhibitions around the world this year, please let us know your thoughts on the shows, and particularly if you are an exhibitor then do let us know which show you are heading to. We continue a long record of commitment to supporting New Zealand exhibitors overseas and are happy to help. Now my bugbear of the month websites with no contact information on them or a silly contact us form that no one replies to. When did building barriers to business become the way to
do business? If you don’t want to be in business then do get a website that has no address, no phone numbers, and no contact email addresses. Then when there is a phone number, calls are blocked at reception as no calls are put through unless you already know the name of the person you wish to speak to. Guess what? I don’t want to promote or buy your brand, you’ve just made it too difficult to track you down. Along similar lines is poor product or food photography - we’ve addressed a few of the main problem areas on a checklist on our website (go to www. supermarketnews.co.nz). You get one chance to impress, if you don’t know what you are doing, don’t take a product shot with your iPhone and more importantly don’t let your PR company do it either!
SEPTEMBER 2 2017: Grocery Charity Ball, Auckland
NOVEMBER 22-25 2017: SIAL Interfood, Jakarta, Indonesia
SEPTEMBER 11-15 2017: PRO FachHANDEL & drinktec, Munich, Germany
MARCH 20-23 2018: ANUGA FoodTec, Cologne, Germany
OCTOBER 7-11 2017: ANUGA, Cologne, Germany
APRIL 24-27 2018: FHA2018, Singapore
Thank you for your best wishes, Peter is recovering and his “Last Word” will return next month.
diarynotes APRIL 4-6 2017: ProFood Tech, Chicago, USA MAY 8-11 2017: ProWine Asia, Hong Kong MAY 17-19 2017: SIAL China, Shanghai MAY 31 2017: ConTech2017, Melbourne
OCTOBER 21-25 2018: SIAL Paris, France
contents
04 News 10 Beverage News 14 Dairy & Dairy-Free 22 Packaging Design 29 What’s New
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12 18 22 SupermarketNews is published under license. Please direct all enquiries and correspondence 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 2016
CHAIRMAN Peter Mitchell, peter@reviewmags.com
ASSOCIATE EDITOR Rossella Quaranta, rossella@reviewmags.com
CIRCULATION & DISTRIBUTION MANAGER Kieran Mitchell, kieran@reviewmags.com
PUBLISHER Tania Walters, tania@reviewmags.com
ADVERTISING SALES Felicity-Anne Flack, felicity@reviewmags.com
ISSN NO. 1173-3365
EDITORIAL DIRECTOR Sarah Mitchell, sarah@reviewmags.com
SENIOR DESIGNER Raymund Sarmiento, raymund@reviewmags.com
The NEW ZEALAND BEVERAGE COUNCIL is an industry association whose members cover all aspects of the non-alcoholic beverage market both in New Zealand and the export markets. The Council members are spread throughout New Zealand and come together annually for an industry conference that covers industry issues and is addressed by international speakers. The organisation monitors product quality and sets standards for the industry and runs national competitions and awards.
THE NEW ZEALAND BEVERAGE COUNCIL (NZBC) P.O. Box 47, AUCKLAND 1140, New Zealand. Email: info@nzbc.nz Phone: +64 9 309 6100 DDI: +64 9 302 9932
ATTENTION GROCERY SUPPLIERS The Food and Grocery Council is an industry association for grocery suppliers providing members networking, events, industry information and strong advocacy. Contact us for information on the benefits of membership: Katherine.rich@fgc.org.nz • Networking • Industry Updates • Conference and Events • Education and Training • Advocacy and Law Reform
Suite 9, Level 3, 20 Augustus Tce, Parnell, Auckland, PO Box 37140 Parnell, Auckland. Tel (09) 3040142 Fax (09) 3772794
www.fgc.org.nz
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news
GETTING THE RIGHT SUPPLIERS ON BOARD
Countdown started moving towards a segmentation model over the past few months, reducing the number of SKUs on its shelves while ensuring increased availability across lines that are popular within a store’s customer base. All-in-all, this strategy gives the business more flexibility and allows it to support local suppliers that wouldn’t be able to supply on a large scale. Looking at figures and demographics, the company has made sure that stores catering to a more affluent customer base had more natural yoghurts and dairy alternatives available in-store.
“The key is to go with no presumptions of what will sell well, and look at all available data—a store’s location, proximity to other supermarkets and major transport routes, as well as the local age, ethnicity and what local customers typically spend, all need to be factored in,” Chris Fisher, Countdown’s general manager of Merchandise, told us. The benefits are three-sided. The customers get the products they want and need, the stores improve their sell rate without wasting shelf space for low-performing items, and the suppliers get their products stocked where they are in demand.
According to Fisher, this approach has been particularly successful for local suppliers the likes of Wooden Spoon Boutique Freezery (ice cream), Made That Way (brownies), Bonnie Oatcakes and Blooms Buttery (pretzels). “We identify the stores where their product is most likely to be popular, ensuring a good sell-through rate and dedicated customer base,” Fisher said, adding that not every range needs to be segmented. Some products (i.e. shoelaces) are in demand everywhere, and their sell-through doesn’t correlate to any particular shopper attributes. For the multitude of smaller, local and even artisan producers out there, ‘segmentation’ is certainly great news, and Countdown is making an effort to get them on board. Fisher invited new suppliers to visit their website first, www.countdown.co.nz, and click on supplier information to get in touch with the relevant category manager. “The best thing you can do is come to us with a business plan that explains why your product is unique and where you believe it sits in the market. Be up front about your ambitions, whether that’s to be a small local artisan producer or a nationwide supplier.” n
NO MORE MICROBEADS The New Zealand government has announced it will ban makeup and beauty products that contain spherical plastic beads, or microbeads, out of concern about their impact on waterways and marine life. Due to their small size, these tiny plastic particles are not filtered out in treatment centres and, once they escape into rivers and oceans, they cause long-term damage to aquatic animals. n
FONTERRA DIRECTOR LEAVES
Director Michael Spaans has just stepped down from the Fonterra Board due to ill health, but the company hinted that he might return should he be given a ‘clean bill of health’. In announcing Spaans’ resignation, Fonterra chairman John Wilson thanked him for his tireless contribution to the NZ dairy industry. To fill this vacancy, the company has temporarily appointed Ian Farrelly as a director, until the 2017 Annual Meeting. n
SOLD TO UNNAMED INVESTORS
EXPERTS NOT UNANIMOUS
After months of negotiations with prospective buyers, Veritas Investments has finally sold its ‘unprofitable’ Nosh food supermarkets to a company called Gosh Holding for $3.98 million, meeting the latest deadline allowed by ANZ Bank New Zealand. Not much was disclosed about Gosh, other than its sole shareholder was Sydney-based Andrew Phillips, a New Zealand corporate finance specialist. Behind the purchase, according to rumours, is actually a consortium of two or three NZ investors. Their names were not disclosed, but new Nosh chairman Phillips revealed they are involved with consumer products in NZ. Also according to rumours, the consortium has plans to expand the Nosh brand both domestically and overseas, probably starting from Australia. Gosh Holding has agreed to assume Nosh’s trade
The proposed 3,200 sqm Countdown store in Richmond was met with criticism from day one due to potential traffic issues. Despite all the supplementary evidence that Progressive Enterprises experts have been submitting, lack of consensus remains. New voices have now come forward to express concerns about the effect a new supermarket would have on Stoke centre. The company continues to defend its project, pointing out that the store will generate 120 new jobs and create ‘an attractive gateway’ to Richmond. n
creditor liabilities under the transaction, including about $1 million worth of stock. The business and assets have been sold as a going concern, and the net sale proceeds will go to repay debt to ANZ. n
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NZ MADE THE CUT AGAIN
Foodstuffs North Island is still among the world’s 250 largest retailers, according to Deloitte’s Global Powers of Retailing list for 2017, which is based on publicly available fiscal data for the 2015
financial year and has seen Walmart taking the top spot again with a retail revenue of $482 billion. Foodstuffs N.I. has lost some ground since last year’s report, when it came in at 184th on the list with a retail revenue of US$5 billion. This time, the company occupied the 202nd position with a retail revenue of US$4.4 billion (NZ$6.5 billion). The average size of a company on the list was US$17.2 billion, and the 250 companies generated aggregate retail revenues of US$4.31 trillion. With 133 companies making the cut, the fmcg sector was by far the most represented. Deloitte’s report also offered an interesting glimpse into the retail trends for 2017. Changing preferences is first on the list: rather than owning many items, modern consumers want few, better things, and are defining
MANAGING DIRECTOR NAMED After an extensive search that spanned nearly one year, UK-born Tesco executive Claire Peters has been appointed as Woolworths Supermarkets’ new managing director, taking over from current Woolworths Group CEO Brad Banducci, who has held onto the position of managing director of supermarkets since his appointment as chief executive in February 2016. Currently working as chief operations officer at Tesco Thailand, Peters will join the Australian retail group in July, in a bid to reverse declining sales and restore profit growth. She will also be the first
CLAIRE PETERS
woman to run an Australian national supermarket chain. n
themselves by how curated their lives are in terms of possessions and experiences. Additionally, they look for authentic, shareable experiences and products that reflect the ‘personal brand’ they promote on social media. A second relevant trend concerns changing formats, namely the ‘retailisation’ or explosive growth of non-traditional retailers developing new models. “In 2017 and beyond, market fragmentation in the retail space will continue to grow,” the report reads. “As disruption and alternative business models persist, retailers will need to reinvent themselves.” Amazon has set a high bar for both online and bricks-and-mortar retailers, now even in grocery. Modern consumers expect on-demand fulfilment of their needs and desires, and retailers need
to attune to that mindset in order to stay relevant, offering both speed and high quality. The final trend identified by Deloitte concerns the arrival of ‘exponential living’, with technologies like AI, robots, sensors and virtual reality no longer being just sci-fi props. “The most innovative retailers are already using them to enhance interactions with customers,” the company said, before adding that this tech revolution is not limited to the in-store experience. Driverless cars, for example, may be used for deliveries or to run errands on multiple stores. “The impacts to the customer journey from self-driving cars are endless. The same impacts can be expected from the widescale adoption of augmented reality, 3D printing, holograms and other technologies.” n
PAINFUL FINE The Auckland District Court has sentenced the makers of Nurofen, Reckitt Benckiser New Zealand (RBNZ), to pay more than $1 million in fines for claiming that their products targeted specific types of pain, even though the active ingredients were the same in each product. Some painkillers were comparable to other Nurofen pain products but cost more. According to prosecutors, the claims misled shoppers into believing they needed
to buy individual products for each type of pain rather than one. Last year, RBNZ pleaded guilty to ten charges laid by the Commerce Commission and the products have since been removed from shelves. n
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NOT JUST A ONE-DAY AFFAIR
SHEDDING LIGHT ON ENERGY SAVINGS Never has energy Some of the latest solutions coming efficiency been into the NZ market use wireless more topical. technology, which results in lower costs Global specialist in installation and labour. in energy To make this happen, of course, management the first step is understanding how a and automation building is performing and making Schneider sure a certain design is meeting RAS JAWAWICKRAMA Electric offers customers’ requirements. Schneider safe, reliable and sustainable solutions Electric’s cloud-based systems monitor to monitor this expenditure item the energy load and provide business closely. The company caters to a broad owners with both live data and detailed range of customers, from domestic periodic reports. By having access to to business installations, including that up-to-date information, owners retailers and food manufacturers. can even make multi-site comparisons According to national sales manager against their whole store network, easily Ras Jayawickrama, Schneider Electric’s detecting where money is leaking out. latest products help achieve efficiency “We offer different levels of (and savings) from day one, allowing reporting, depending on the businesses to manage and control organisation we work with; some their lighting, refrigeration and air might need more detailed data while conditioning through one integrated others can work with basic reports, system. and we can customise all that,” said If efficiency is one part of the story, Jayawickrama. ‘experience’ is another, as retailers Schneider Electric sells through know all too well. “From maintaining its partner network, which conducts the right temperature to making sure the audit process and comes up with products are displayed effectively, feasible options, but the company also retailers want their customers to have aims to engage with its end users by a good shopping experience, and promoting and educating them on getting the lighting right is key,” said the most efficient lighting control, SoulSodas SMN ad 102x155mm_HR.pdf 2 01/27/17 3:53 pm Jayawickrama. metering and monitoring solutions. n
New Zealand is at the heart and soul of AFM Group, and in more ways than meet the eye. The company, whose name is an acronym for Action Food Marketing, focuses on biscuits, confectionery and snacks, with a big range of different lines from entry-level to high-end products. Among these are AFM’s flagship creations and biggest pride—the ANZAC biscuits. Mike Fisher started the business in 2014, exactly a hundred years after his great-grandfather Robert William Fisher bought a small town bakery, shaping the Fishers’ future for generations to come. “My family has been operating in the food industry ever since,” said Mike, who began his own venture with topquality imports in mind. When the NZ Returned & Services Association (RSA) approached him to produce a range of fundraising biscuits celebrating the ANZACs, Fisher saw a great opportunity to give back to the community, and not just as a one-day affair. The ANZAC biscuits are available at participating stores all year-round and, since the partnership was sealed in 2014, have helped raise over $200,000 for the cause. Fisher aims to boost these fundraising efforts by getting more stores on board, eager to show their support and promote the biscuits throughout the year. RSA’s national president BJ Clark said they are really pleased to be working with AFM. “The proceeds we make from sales allow us another way to raise
BJ CLARK AND MIKE FISHER
much-needed funds, so we can keep performing our primary mission: to support New Zealand’s current and former service personnel, and their families.” The AFM Group also imports products from Europe, Australia and Asia, and Mike and his father Paul are regulars at some of the biggest international trade shows such as ISM, Anuga, SIAL Paris and SIAL China. “It’s a way to keep up with the latest worldwide trends. The return investment we get in terms of networking, meeting new suppliers and finding new products is invaluable,” Fisher said. “At the moment, we see plenty of opportunities in export, and that’s something we would like to push, especially in China and the Asian market at large.” n
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AUSTRALIAN CHAIN LOSES GROUND
In its annual league table, specialist consultancy Brand Finance has calculated that the total value of the 100 most valuable Australian brands is almost $143 billion, of which 19.3 percent were retail brands. Woolworths and Coles placed fifth and sixth, respectively. From 2009 to 2015, Woolworths was the number one company, but following a 21 percent decrease in brand value to $8.4 billion, the chain has now slipped to the fifth position. On the opposite, Coles has climbed two places to sixth, thanks to a 21 percent increase in brand value to $7.9 billion. Brand Finance Australia’s managing director Mark Crowe said Coles is poised to become the country’s most valuable retail brand. n
FOODSTUFFS ELECTRIC DELIVERY VAN
Foodstuffs has announced that, over the next coming months, it will trial 28 zero emission electric delivery vans at its New World and Pak’nSave stores throughout the country, thanks to funding from the Energy Efficiency and Conservation
Authority (EECA). “This is the first time a commercial electric vehicle fleet of this size has been trialled in New Zealand,” said Chris Quin, CEO of Foodstuffs North Island Ltd, according to whom the initiative fits perfectly with Foodstuffs’ drive to reduce environmental impacts and support brand NZ. The electricity powering these vehicles will be 100 percent locally generated and over 80 percent renewably generated through hydro, wind and geothermal sources. n
BACK IN AUSSIE HANDS
Vegemite has just changed hands after more than 90 years, getting back to its Aussie roots. Australian cheese manufacturer Bega Cheese Limited has bought most of Mondelez International’s grocery brands in Australia and New Zealand for AU$460 million (NZ$484 million). The transaction includes a number of iconic brands such as Vegemite, ZoOsh, Bonox and other products that use the Kraft brand. On the contrary, the Philadelphia business is not included in the deal as it is a Mondelez International Power Brand. According to Mondelez’s statement, the move will enable them to focus on their core snack brands, especially Cadbury and Oreo. n
TAKE CARE OF YOUR CUSTOMERS
To quote the famous book The Little Prince, ‘Essential is often invisible to the eye’, yet no one wants to be reminded of how many bacteria multiply and prosper all around us, unnoticed and unbothered. A safe answer would be: many more than you think, and supermarkets are not immune. Following extensive market research, NZ-owned and operated company Offshoot has introduced an all-in-one, free standing, antibacterial wet wipe station for both trolley wipes and hand sanitising. These stations can be positioned both smartly and boldly next to the trolley bay and meat sections in any store. “We started our company four years ago, and this recent launch is a welcome addition to the business,” said Offshoot owner Wesley Binedell. “As people demand easy-to-use hygiene accessories, our wipes and dispensers cater to this need. What’s more, our wipes are alcohol-free, 100 percent plastics recyclable, have a refreshing lemon scent, are NZ accredited for both C31 (surface cleaner) and C44 (sanitiser wipe) and kill 99.9 percent of bacteria with their sanitising power maintaining effectiveness for hours after applying.” A study conducted by the University of
Arizona in 2011 found that 72 percent of trolleys presented traces of Coliforms (faecal bacteria), and half tested positive for the potentially deadly bug E. Coli. Consequences cannot be underestimated, and to make sure the word spreads, Offshoot has enlisted the help of Jeff Johnson as its exclusive contractor for the supermarket sector. New World Devonport has been the first store to adopt Offshoot’s new Hand Hygiene system, and according to owner-operator John Ashton, customers love it. More stores have joined over the past few months. “From an owners’ point of view, it’s all about protecting their customers’ well-being. They can send out a clear message, saying ‘We want you, our customers, to be safe, because we care about you’,” said Binedell. n
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PONSONBY STORE TURNS RAINBOW
In a sign of support for Pride month, Countdown Ponsonby team members will swap out their regular uniforms for brightly coloured t-shirts. Meanwhile, two of Countdown’s online delivery trucks servicing Auckland CBD have been transformed into colourful rainbow flags for the month of February. Countdown Ponsonby has 15 team members who are part of the LGBT community, including outgoing store manager Jason McQuoid, who has been a driving force behind the store’s involvement in the initiative. It is also his legacy to the company, as McQuoid is stepping down from his role to move overseas. The supermarket will be a sponsor of the Pride Parade on 25 February, with delivery trucks featuring as a float and around 40 Countdown team members guiding them down Ponsonby road. Additionally, Countdown is the sole sponsor for the iconic marching boys. The Auckland Pride Festival is scheduled from 10 to 26 February. For more information, visit aucklandpridefestival.org.nz. n
IMPROVE YOUR SHELF-CONTROL
Australian-based global tech company Lakeba has developed an in-store robot, dubbed ‘Shelfie’, that promises to help supermarkets manage their stock levels. By using image capturing technologies and data analytics, Shelfie is able to scan shelves and price labels, sending real-time reports and allowing store managers to detect sales trends and optimise merchandise layouts. The innovation, which comes as a drone, robot or handheld device and requires an upfront cost of $50,000 per device, aims to solve overstocking issues once and for all, by providing valuable insights on the actual in-store demand and measuring how quickly stock gaps are addressed. According to Shelfie CEO Darren Younger, the system can
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deliver cost savings of up to $300,000 per store per year. Shelfie scans shelves, identifies stock levels, captures pricing information from shelf labels and alerts staff when a product is almost sold out. A full inventory check takes Shelfie about three hours to complete. So far both Coles and Woolworths are ‘shilly-shallying’, which has forced Lakeba to launch its Australian-born invention overseas first, particularly in Britain, where the robot will be rolled out commercially by the end of the year. Younger blames it on the lack of substantial competition and digital maturity in Australia as opposed to other markets, basically ‘sitting back and watching’ as companies like Amazon eat up market share. Coles spokesman replied that this was not the case, as the company had invested about $1 billion on innovation since 2007. n
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DB DOWNS ONE MORE
Heineken-owned DB Breweries has added another powerful craft beer player to its family of brands, by purchasing the award-winning Tuatara Brewing Company. The move is set to take Tuatara to the global stage. Production will remain on the Kapiti Coast and Wellington, and Tuatara founder and master brewer Carl Vasta gave his assurances that the recipe won’t change. So did DB Breweries’ managing director Andy Routley, who made clear that DB has no intention of ‘messing with a winning formula.’ “In order to take things to the next level, we need assistance. That’s why we’ve teamed up with DB,” said Vasta, who will remain in the business alongside his wife Simone and their son Adam. Founded in 2000, over the years Tuatara has become one of the largest craft breweries in the country, with more than 2 million litres of beer produced in 2016. Among its most recent milestones was taking out the supreme award at the Brewers Guild of NZ 2016 Beer Awards. It’s the only brewery to have won supreme twice, the first time in 2008. n
HIGH-PROFILE DEAL
Independent beverage distributor Federal Merchants & Co. has strengthened its premium spirits by signing a distribution agreement with William Grant & Sons, effective on 1 May 2017. William Grant’s brands which include Glenfiddich, Grant’s and The Balvenie will move from Lion to Federal Merchants, marking the end of a partnership spanning more than three decades. “The difficult decision was made to make a change as we pursue a new consolidation strategy,” said Colin Rochester, general manager, William Grant. Federal Merchants has over 60 brands within its multi-beverage portfolio, ranging from spirits to wine, beer, water and syrups. n
NEW CHIEF EXECUTIVE
ADRIAN GARFORTH
After a comprehensive international recruitment process, Master of Wine Adrian Garforth has been appointed as Yealand’s Wine Group’s new chief executive, replacing Jason Judkins who resigned in 2016 after nine years at the helm. Garforth brings a 30 years’ experience in the wine industry across a wide range of roles. Over the past 14 years, he has run his UK company Blackrock Wines, offering consultancy services to international wineries and restaurants with an emphasis on organic, biodynamic and sustainably-produced wines. He is currently vice chairman of the Institute of Masters of Wine and will become chairman next year. The new CEO said he was looking forward to working with Peter Yealands and his team. “The scale of their achievements in their short existence is extremely impressive, and their philosophy of producing world-class wines sustainably is clearly gaining cut through in the market,” he said. n
KEEPING KIDS HYDRATED
Eat My Lunch has joined forces with Pump to include, once a week, a free Pump mini water in all lunches provided to 38 schools enrolled in the Eat My Lunch programme. The partnership will last for three years, helping keep Kiwi kids hydrated and focused throughout their day. “We are always looking for ways to give back to the community and in ways that would directly benefit Kiwi families,” said Wendy Rayner, senior executive of Coca-Cola Amatil. “This partnership with Eat My Lunch has enabled us to make a tangible social impact, and it’s a cause that is close to our heart.” n
OFF TO A GOOD START OF THE YEAR Happy New Year and I hope you had a relaxing break. I would like to thank all our teams and our suppliers for their hard work leading into Christmas and over the holiday period; together we had a very good Christmas.
Dave Chambers
Managing Director Countdown
Hopefully, in the coming weeks, we will finally have got some long awaited sunny weather so that we see continued sales growth on traditional summer products, instead of a rise in cough and cold remedies! We were also delighted to donate more than 670 trolleys full of groceries around the country to The Salvation Army as part of our Christmas Food Rescue Appeal. As well as being extremely busy on the shop floor, we opened our new Countdown Aotea store in Porirua. We
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had hundreds of locals attending the celebrations on opening day and we are continuing to trade well since. We are now completing the finishing touches to our new Mosgiel store which we will be opening shortly. This month we have announced the findings from our third annual Trolley Report, which is a comprehensive look at grocery trends in New Zealand based on our own data from the three million Kiwis who shop with us each week. Countdown remains committed to delivering our customers low prices they can count on. This focus saw price deflation of 0.2 percent in the year to 30 June 2016. We continue to focus on making groceries more affordable in a really competitive market. There are now 3,000 products in OWNED
our Price Down programme; the most popular is Homebrand $1 bread. And while our own brand tinned tomatoes, biscuits and chips feature at 8, 9 and 10 on the list of most popular Price Lockdown products, branded products are also heavily represented. These include Quilton toilet paper, Tip Top Soft Bread, Kiwi Blue Water, and Peckish Thins Rice Crackers, all on Lockdown. We know that convenience has become key to customer shopping habits and we can now see that having additional services available under one roof is helping to give our customers back some valuable time. This is evident through the continued sales growth of prescriptions via our in-store pharmacies and the continued popularity of our online shopping and
Click and Collect services. Another perfect example of our customers wanting more services to make their lives easier is our latest endeavor with NZ Post. We now have a pick-up service for couriers from 38 of our stores nationwide. In December alone, we arranged more than 2,500 pick-ups for our customers from Countdown stores. We expect this trend to grow, as customers become more aware of the service. Another interesting trend, and a topic that is featuring heavily in the media, is plastic bag use. In our 2016 figures, we have discovered that our customers bought almost 430,000 reusable bags last year which is an increase of almost 130 percent yearon-year. This shows customers are making the move to more sustainable choices, which is something we actively support. The report also looks at Countdown’s top sellers across the supermarket, which makes for an interesting read—some of the results might surprise you. To see the full Trolley Report, visit our website https://www.countdown. co.nz/about-us n
SAFE SIPPING
Following a successful release in the US and UK, American mother-and-son team Laura Bartlett and Mitch Strahan are bringing to NZ their Wine Condoms—an invention that you didn’t even know you needed. Just as their name suggests, a ‘wine condom’ is a rubber slip that helps keep the wine fresh by protecting the neck of a wine bottle. Put in Bartlett and Strahan’s words, it’s a protection for wine lovers. Wine Condoms are already available for online purchase at winecondoms.com, but the company is in talks with undisclosed New Zealand’s retailers to launch them in brick-andmortar stores. n
CONSUMERS NEED REMINDERS
A recent study conducted by The Coca-Cola Company in the United States revealed that drinking water is one of the top six activities shoppers do to maintain their health. Shoppers, however, are also thirsty for hydration reminders and retailers can do their part by providing in-store and out-ofstore messaging, introducing rewards programmes that incentivise customers for more hydration, and teaming up with health tracking apps or devices. n
ENERGY DRINK UNDER FIRE
The father of US teenager Dustin Hood is suing Monster Energy, alleging his son died in 2015 of cardiac arrest following ‘acute consumption’ of Monster, namely three-and-a-half 700ml cans in 24 hours. After drinking the last can, his father claims, the 19-year-old collapsed on the basketball court and died in hospital a short time later. According to the lawsuit, the deadly cardiac arrhythmia was triggered by a caffeine overload. A spokesman for Monster in the US said the company would ‘vigorously defend the lawsuit,’ emphasising there is no medical or scientific basis to support any causal connection between Monster energy drinks and Hood’s cardiac arrest. n
ONE OF THE FAMILY Canadian student and tastings executive at Decanter Magazine Christine Marsiglio has received the ‘Family of Twelve Scholarship’, which was open for entry to all students on the MW Study Programme by submitting an essay titled: “Is it time for real world fine wine, not just old world and new world wine?”. “Christine’s essay consideration of sustainability and globalisation resonated well as did her highlighting of climate change as a key challenge for wine producers,” said Judy Finn, chair of NZ’s Family of Twelve. Marsiglio will travel to NZ for a 12-day exclusive tour of the Family of Twelve properties, attending special tastings and meetings with their principals and winemakers. n
Love a pallet, love a Loscam. Stefan Crooks, Managing Director The Natural Food Company
www.loscam.com shaun.sievwright@loscam.com
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beveragenews MIXERS GAIN POPULARITY
ALCOHOL NO ORDINARY COMMODITY Alcohol should be kept away from entrances and checkouts and must be displayed in separate designated areas. The Court of Appeal has recently accepted the interpretation of the Sale and Supply of Alcohol Act by the High Court, setting a legal precedent that NZ supermarkets will need to take into consideration when designing their stores. New World Bishopdale had had its liquor license challenged by Canterbury Medical Officer of Health, Dr Alistair Humphrey, according to whom the end of aisle display of alcoholic beverages didn’t comply with the law. Foodstuffs appealed the High Court decision in the Court of Appeal, but the latter dismissed Foodstuffs’ argument. “Alcohol is often an impulse purchase, like confectionery, so where it is placed in the supermarket can make a huge difference to sales,” said Humphrey. “It’s really pleasing to see that most of the new supermarkets being built are taking their responsibilities seriously and building completely separate areas for selling alcohol.” n
Millennials are consuming more spirits than older generations and are drawn to higher-quality craft and premium labels, according to leading US food and beverage flavour developing company FONA International. To match this trend, some brands are looking to intensify their R&D effort to create or reformulate more premium mixers, also experimenting with healthier and vitamin-infused mixes that may attract young, healthconscious drinkers. Interestingly, bitters like chamomile and rhubarb are gaining popularity in too-sweet cocktails. n
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Fake wines are spreading through China, and the worldwide wine industry is footing the bill. Experts estimate that empty bottles could be worth hundreds of dollars each, for a black market value of $37,400. Counterfeit wine often involves extremely high-end bottles, and wineries are taking increased steps to tackle the issue directly. Romanee-Conti, for example, puts an X on the label of any open bottles after tastings, whereas Australian producer Penfolds simply smashes its bottles. Lafite-Rothschild and Ornellaia have started using so-called Bubble Tags, which contain both an alphanumeric code and a QR code, acting as unique fingerprints. n
AMERICA STILL ATTRACTIVE MARKET Barring any major adverse trading changes under Trump’s Administration, the US are set to remain an increasingly attractive market for wine exporters. According to Rabobank’s latest wine quarterly report, US wine imports continued to grow last year, rising 2 percent
M AT U A Accounting for over 86 percent by volume of all our exports and nearly 57 percent of the bearing national vineyard, Sauvignon Blanc is what put New Zealand on the world’s wine stage - it happened so fast and so naturally that we could barely remember a time without it. Even though iconic viticulturist Romeo Bragato imported the first Sauvignon Blanc vines from Italy in 1906, it wasn’t until 1974 that Bill and Ross Spence from Matua Valley marketed the first bottles. With hindsight, it was a history-changing event for a winery that had started operating only five years earlier from a small tin shed in West Auckland. Today the majority of plantings of Sauvignon Blanc in New Zealand are direct descendants of the vines that Matua grew in the 1970s, often nicknamed the ‘Spence Clone’. Over the following decades, the brand has grown to become one of NZ’s most awarded and internationally successful wineries, appealing to most palates and occasions, and particularly popular with consumers aged 35-54. Matua’s portfolio of Sauvignon Blanc, Chardonnay and Pinot Noir wines includes three award-winning tiers: the fruit-driven Regional Range (teal label), the Lands & Legends Series, and the Single Vineyard Collection. A regular presence at overseas wine exhibitions and expos, Matua currently exports globally
EMPTY BOTTLES WORTH HUNDREDS
to all key markets around the world, including Australia, US, UK, Canada, Sweden and South East Asia. With a passionate team of eight and an energetic chief winemaker like Greg Rowdon, the company plans to keep up with the good work. It was Rowdon’s mother who suggested him to pursue a career in winemaking, as he had always enjoyed science in high school. “Thinking about it now, I suspect she may have particularly liked the idea of getting some free wine,” he said, jokingly. Things got serious after he tried his first glass of New Zealand Sauvignon Blanc. It was love at first sip. “Unlike other wines I’d tasted, I was genuinely taken aback by how it could be so packed with flavour.” After completing a Bachelor of Science at the University of Auckland, and six months before starting a Masters in Science majoring in Winemaking, Matua offered him a role in the cellar. “I love to make wine, and I really enjoy the breadth of the role. I like to keep things simple and believe fruit is paramount. Most of my thinking is about preserving and showcasing the fruit, then adding subtle touches of complexity along the way,” he said. “The textural or mouthfeel element of wine is also very important to me. There is a lot of emphasis on what a wine smells and tastes like, but how it feels in your mouth can add a whole new experience.” At Matua, sustainability plays
by value and 3 percent by volume. As a result of Brexit, European exporters are set to face increasing challenges in the UK market, so growing competition from imported wines, particularly from the EU, is now expected in the US market. n
a huge role too. All grapes are grown sustainably and accredited by Sustainable Winegrowing New Zealand, and in 2013 the winery undertook a significant redevelopment of its wastewater treatment facility. The numerous accolades received over the years are a reflection of this commitment to quality, but there is one vintage, in particular, Rowdon is personally proud of; the Matua 2011 Single Vineyard Chardonnay. “It was a very enjoyable wine to drink, but to see it receive seven major trophies and be recognised by so many shows and wine critics was really satisfying.” More recently, the company has been working hard in the background on its Pinot Noirs and has made a few subtle changes, mainly involving picking a little earlier. “Hopefully people will see even fresher, more fruit-driven wines from vintage 16 onwards.” n
PRIZE RECORD
“We have recently received some prestigious awards for Sauvignon Blanc across all three tiers of our portfolio – which is very fitting being New Zealand’s first producer – with our Matua Regional Sauvignon Blanc 2015 scoring Gold at the 2016 China Wine and Spirits Awards; our Matua Lands and Legends Marlborough Sauvignon Blanc 2015 receiving a Trophy at the 2016 Sydney International Wine Competition and Gold at the 2016 Decanter Wine Awards; and our Matua Single Vineyard Awatere Sauvignon Blanc 2015 taking Platinum and Gold Medals at the 2016 Decanter Awards.” n
dairy&dairy-free LAND OF MILK AND MILK ALTERNATIVES
A lot is happening in the food industry world-wide, and the ‘Dairy vs. Dairy-free’ space certainly makes no exception. On one side, the market has been welcoming a proliferation of dairy-free alternatives; on the other, dairy companies of all sizes are tapping into a growing requirement for premiumisation. Full report available online at supermarketnews.co.nz/dairytrends2017. Our thanks to New Nutrition Business’ director Allene Bruce and team for their contribution to this Dairy Report. As an increasing number of consumers seem keen to become flexitarians or ‘flexible vegetarians’, the two submarkets are competing and, at the same time, complementing each other. While pointing at the ongoing, science-based rebirth of dairy, research and consulting company New Nutrition Business has recently listed Dairy-Free as one of ten key trends to watch this year. Over the years, the plant-based, dairy-free movement has been able to successfully use the message of better digestive health as a away of positioning itself against dairy. While soy milk has been the first option available, it’s almond milk that truly changed the market and paved the way for more lactose-free alternatives— like coconut. Founded in the UK in 2014, the
Coconut Collaborative has taken the non-dairy challenge to the next level, with a range of dairy-free yoghurts and frozen desserts that are premiumpriced and sustainably made with coconut milk. Its secret ingredient was a substantial investment in sampling (either outdoor and in-store) and packaging design, which helped present the products as tasty, indulgent and healthy. This is where the importance of communication comes into play, and that’s a lesson the dairy industry should no longer ignore. If they want to defend and strengthen their market share, the NNB’s report concluded, dairy companies must be able to communicate their benefits as convincingly, coherently and passionately as their plant-based competitors.
WHERE ARE WE GOING NEXT? Looking at the growth opportunities being up for grabs in the NZ dairy market, high-quality specialty butter is likely to become the next focus of the industry.
Be it butter made from grass-fed or pasture-raised cows, cultured or flavoured, ghee, brown or even goat butter, Kiwi manufacturers have quite a few unexplored territories to chart.
KIWIS ARE NUTS FOR ALMOND MILK by Lance Dobson, Director, Retail, Nielsen
NEW ZE AL ANDERS NUT T Y FOR AL MOND MILK NEW ZE AL ANDERS NUT T Y FOR AL MOND MILK % CHANGE IN VOL SALES % CHANGE IN VOL SALES
2015 2015
Traditional TraditionalMilk Milk Almond AlmondMilk Milk
2016 2016
1.8% 1.8%
3.2% 3.2%
56.5% 56.5%
40.7% 40.7%
MILK ALTERNATIVES SALES MILK ALTERNATIVES SALES
SOY MILK SOY MILK $18,215,102 $18,215,102 ALMOND MILK ALMOND MILK $14,431,628 $14,431,628 RICE MILK RICE MILK $4,469,363 $4,469,363
COCONUT MILK COCONUT MILK OAT MILK (EXCL. CANS) OAT MILK (EXCL. CANS) $2,057,772 $2,250,479 $2,057,772 $2,250,479
Source: Nielsen ScanTrack, MAT T0 01/01/2017 Source: Nielsen ScanTrack, MAT T0 01/01/2017
Whether it is driven by lactose Copyright © 2017 The Nielsen Company Copyright © 2017 The Nielsen Company intolerance, allergies, veganism, the paleo diet, or just general health and wellbeing, it appears New Zealanders are exploring emerging alternatives to traditional white milk. No longer confined to the shelves of health food outlets and specialty stores, ‘new age’ options such as almond, rice and oat milk are now commonplace in supermarkets across New Zealand. In fact, Nielsen retail scanning data shows we are particularly nuts about almond milk: dollar and volume sales have more than doubled over the past two years to January 2017, making it a $14.4 million market, nationally. Fresh white dairy milk, on the other hand, recorded modest volume growth (3.2 percent) and dollar sales remained completely flat in the last 12 months. Classic dairy substitute, soy milk, followed a similar trend with a 6.6 percent rise in volume in the last year. And while almond milk only accounts for a small fraction of total milk (3 percent), it is the third largest
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segment nationally and accounts for more sales than the remaining alternative milk options combined. So why have sales for almond milk gone nuts? Across the Pacific, it appears consumers are adopting a back-tobasics mindset where a focus on simple ingredients and fewer artificial or processed foods is a priority. Findings from Nielsen’s Global Health and Ingredient Sentiment Survey reveal that more than half (55 percent) of New Zealanders say they “actively make dietary choices to help prevent certain health conditions such as obesity, diabetes, high cholesterol and hypertension”. While 61 percent say they actively avoid animal foods that contain antibiotics or hormones. Growing concerns around health will continue to play a major role in consumers’ milk purchasing decisions in the future, presenting an opportunity for brands and retailers to reach out and reconnect with consumers who may have lost their milky way. n
dairy&dairy-free NATURAL, CONVENIENT, ALTERNATIVE by Nikhil Sawant, Merchandise Manager for Dairy, Countdown the biggest increase in demand from customers. Suppliers have responded by creating different pack sizes and options to suit consumers needs. Natural yoghurt has also experienced an increase in popularity as customers continue to become more healthconscious and look for alternative options for breakfast and cooking ingredients.
As consumer habits change, so too does the industry and whilst traditional dairy has increased, it is the dairy alternative products like coconut milk, yoghurt and or fresh nut milks which are experiencing the biggest growth and increase in customer demand. If this demand continues, then we may see alternative dairy options commanding more shelf space. Convenience continues to drive changes across the whole supermarket and is a big area of growth, particularly
AS NATURAL AS YOGHURT CAN BE Established 14 years ago and currently employing only seven staff, Clearwater’s is a small NZ-owned and operated yoghurt company based in Geraldine. As the latest generation of a family that arrived in New Zealand in the 1830s, Bryan and Jackie Clearwater are committed to the organic principles of farming, producing the most natural dairy products in the most sustainable way. Their factory is right beside the cow shed on their organic family dairy farm, and all of their yoghurts are organic and made using only the best possible raw materials. The fantastic feedback they have received from customers over the years speaks for itself. “Our yoghurts are the freshest, most natural yoghurt you can possibly get,” said Trudie Lineham, office manager of Clearwater’s. “There is no added sugar, preservatives, thickeners, gelatins or additives. All that is in our natural yoghurt is organic milk and culture, that’s it.” The company produces four different flavours; Natural, Honey, Apple & Cinnamon and Topless, which is 100 percent fat-free.
NIKHIL SAWANT
New Zealanders continue to search for more healthy alternatives, and we’re seeing this trend flow through into several areas of the supermarket including the dairy category. The whole dairy market has seen a lot of growth and innovation in the last couple of years. In particular, flavoured and organic milk are the two skews that have seen
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convenience meals and convenient products. Within the dairy sector, we continue to see more adult and kids’ snacking options in cheese such as sliced cheese, pre-packed cheese and crackers, and cheese sticks highlighting the increasing demand for protein in our customers’ daily dietary intake. Another area of growth has been fresh juice and drinks with live cultures such as Kombucha and we envisage that this will be a trend of the future. n
Clearwater’s yoghurt is available in 300g, 700g and 2kg pots. Apart from its yoghurt range, Clearwater’s also makes Organic Rice Pudding (80 percent organic), Clotted Cream and Brandy Clotted Cream for the Christmas period. For more information, visit www.clearwaters.co.nz. n
PURE, CLEAN AND EFFECTIVE NUTRITION Milligans Food Group has been operating in Oamaru since 1896. 2016 was Milligans’ 120th year in business and, according to account manager Max Riedel, its most successful to date. Since starting out as a flour mill, Milligans has diversified over the years to become one of New Zealand’s leading suppliers and manufacturers of food ingredients, animal nutrition and consumer food products. As part of this growth and expansion, the company acquired the Granny Faye’s brand in 2004 and the Frosty Boy brand in 2007. “We are looking to keep growing our product range within the NZ market in a way that is innovative and adds benefit to the consumer,” said Riedel. “All of our current challenges are based around managing our rapid growth.” Committed to providing everyday Kiwis with high-quality products at a fair price, Milligans specialises in a range of products which includes cheese, butter, batter, sauces, whey protein and milk powder. Calcium Enriched 1kg milk powder is the latest addition to the range which includes Whole
& Skim. Milligans’ food products are New Zealand-made and provide pure, clean and effective nutrition, with the new Calcium Enriched Milk Powder and Whey Protein being prime examples of this. Eclipse Calcium Enriched Instant Milk Powder is a completely new product in the NZ market. Calcium is essential for building and maintaining strong bones and has many other health benefits for young and old. Eclipse Whey Protein is made from 100 percent natural New Zealand dairy whey from grass-fed cows. It offers a great source of protein for active people, the elderly or anyone trying to increase their protein intake at an affordable price. For more information or to see the full range, visit www.milligans.co.nz. n
A VITAL PART OF OUR BUSINESS
by Antoinette Laird, Head of External Relations, Foodstuffs (NZ) Ltd Milk is a vital category for the business – it’s on most Kiwi households’ weekly shopping list, but naturally it’s just part of what we offer. We’re all about ensuring our customers have access to a wide range of convenient, quality, healthful and innovative products, which are also good value for money. This includes milk and a whole host of other dairy products. Cheese is a big growth area. Figures supplied by Nielsen show the value of cheese sales (excluding cultured cheeses) were up 5 percent last year, to almost $400 million for all NZ supermarkets. Likewise, sales of yoghurt and “dairy food” desserts have risen consistently for each of the past two years, with 2016’s sales up 5 percent on 2014. Growth has been more consistent for ice cream, rising by about 4 percent each year for the past two years, taking total NZ supermarket sales to $187 million in 2016. Here, premiumisation is driving growth, with more consumers prepared to pay a little more for a bit of luxury. Premium milk is also driving category growth, with more suppliers offering organic options and innovative flavours. That said, there was a significant drop in the total
value of milk and cream sales after 2014, falling by about 4 percent in 2015 to $440 million, where it stayed in 2016. It should be noted, though, that 2014 was the year the global price of whole milk powder tumbled; translating into savings for shoppers. Growth has been somewhat restrained in cultured cheeses (e.g. cottage cheese and sour cream). This category was worth around $54 million in 2016, up only 2.7 percent on 2014. Healthier options are currently on trend across dairy, as they are across a large proportion of other supermarket categories. Shoppers are wanting lowfat, unsalted and low-sugar options. Convenience is a key future trend. Consumers are increasingly looking for products that save time with single-serves or options requiring little or no preparation before going into meals and lunchboxes. We do not believe non-dairy alternatives have eroded the traditional dairy market, largely because nondairy shoppers and traditional dairy shoppers differ significantly. Rather, traditional dairy shoppers are trading up to the premium and healthier offerings, while non-dairy alternatives such as coconut yoghurt are bringing in shoppers who would have bypassed the dairy category in the past. n
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dairy&dairy-free CRAFTED WITH QUALITY AND CREATIVITY
Started in 1987 by Sue and Bob Berry as a diversification from their sheep, beef and cropping enterprise, Whitestone has remained 100 percent family-owned and operated ever since. With its 50 plus strong workforce, the company strives to lead NZ’s specialty cheese industry in both quality and innovation, as well as championing its New World Cheese developments by exporting hero cheeses to key international markets. Whitestone currently produces 25 cheeses in its Oamaru factory, and now the company is set to expand its product range in unexplored directions. “We have new goat’s milk cheeses coming out next season, plus some exciting developments on the cow’s milk side,” said CEO and director Simon Berry. “We are always experimenting and presently working on a boutique range of flavoured butter, a category we see as having potential.” Suspended between tradition and innovation, Whitestone believes in having fun with flavour and texture combinations, getting creative with premium butters and introducing interesting condiments to cheese platters. Their current range of butters are all traditionally churned on site and hand-wrapped, and the company has also been able to present to market
a number of NZ’s first, including retail platter packs, cheese tins, probiotic cheese, smoked butter and beer cheese. “We have also developed our own blue mould strain which differentiates our blue cheese from any others, to the extent that our Vintage Windsor Blue which won a Wisconsin silver medal is now sought after in Paris.” As for its raw material, Whitestone uses local highquality North Otago cow’s milk and South Canterbury goat’s milk, as well as developing a local fresh sheep’s milk supply. Long-term prospects are bright. The company has a significant factory expansion underway to meet both domestic and international demand. Additionally, a recent trip to France’s cheese regions has injected fresh inspiration into the business. “The NZ market is still young when it comes to specialty cheese and butter flavours, and it is exciting to know we have plenty of scopes to explore,” said Berry. “There are some poor-quality, imported dairy products filling our supermarket shelves that drag standards down, so one challenge we have to face is introducing consumers to our high-quality NZ products and retain their custom.” n
AN OOBER UNIQUE OFFERING Seven years ago OOB Organic launched its first Blueberry ice cream. Fast-forward to 2016, OOB now produces an organic ice cream range consisting of 12 different flavours distributed both locally and offshore. Today, OOB Organic is the only brand that offers certified organic ice cream in the New Zealand market. “For OOB, organic has always been about providing premium, high-quality products in a competitive food market where quality, taste and health are important to the consumer,” said Erik Tams, sales and marketing manager of OOB Organic. “We’re 100 percent committed to organic from start to finish, beginning with sustainable farming practices, honest ingredients and an organic certification.” Growth in the organic category has increased by 23.5 percent year-on-year, proving the successful transition of the organic movement into a mainstream consumer market.
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Building on their innovation, OOB Organic has welcomed a new flavour to their ice cream range – Oobie Joobie Ice Cream. The nostalgic favourite has been well received by Kiwis and is available in 850ml, 470ml and 120ml pots. “The organic food process isn’t always the quickest way of working, but we’re serious about sourcing only the best, natural ingredients in our products. We tried sourcing organic jubes from around the world, but none were suitable for this product. We engaged with a local manufacturer to develop a jube made with organic ingredients,” Tams said. OOB Organic now exports its organic ice cream range to China, Singapore and Malaysia and is exploring opportunities in new markets. Over summer, OOB Organic opens its Orchard Shop to the public offering fresh blueberry blended ice creams and scoops of its classic range. Kiwis can visit at 89 Jones Road, Omaha. To check out OOB Organic’s full organic ice cream range, visit www. oob.co.nz. n
‘DAIRY IS A HIP AS EVER’ In spite of the rising popularity and ever-increasing variety of dairy-free alternatives, according to Fonterra dairy is ‘as hip as ever’. Recent figures back this up. The co-op’s consumer and foodservice business has grown by $1.5 billion from 2012 to 2016, now representing $6.5 billion turnover and growing in more than 80 countries worldwide. The westernisation of Chinese breakfast habits is just one of the contributing factors. “Fonterra monitors all developments relating
to the dairy sector and does not see non-dairy alternatives as a serious threat to the dairy industry. The globally traded dairy market is set to grow by over 5 percent a year in the next five years as the world’s population increases and developing countries become more affluent,” a company’s spokesperson told us. “To really duplicate all the goodness in dairy the way nature has designed milk is extremely difficult to do. It is unlikely that non-dairy alternatives can match the real thing.” n
THE ONLY ‘WHEY’ IS UP
Supermarkets have been instrumental in broadening cheese lovers’ tastes and purchases, supporting the retail category to grow in 2017, Miel Meyer, MIEL MEYER chairman of the NZ Specialist Cheesemakers Association, told SupermarketNews. “There is strong demand for fresh authentic artisan cheese. Consumers now want these cheeses for entertaining and cooking, and supermarkets have supported this. They front foot trends - such as cutting fresh from the wheel which is great to see,” Meyer said. He also added that in the past
decade there had been a significant increase in the number of New Zealand producers, and so had the scale of FMCG merchandising. “Cheese purchase in supermarkets is strong and will continue to be in 2017. Cheese boards are not just filled with Cheddar, Brie and Blue - but a real selection and variety of cheeses,” Meyer said. He predicts the speciality category to prosper with fresh goats, sheep and buffalo milk becoming more readily available. “The NZ Champions of Cheese Awards, being judged in March, give customers a way to seek out the best this country has to offer. Having award labels on product is a great way to showcase the pedigree, and help consumers buy the best.” n
CREAM, HEART AND SOUL
Hokitika-based dairy co-operative Westland Milk Products has had a limited profile in New Zealand’s FMCG industry until recently, even though Westland’s dairy ingredients are used in some of New Zealand’s best-loved brands such as EasiYo and Cookie Time. The company’s butter brand Westgold has enjoyed a highly successful export business in key overseas markets including Azerbaijan, Australia, China and Singapore over the last ten-plus years; and 2016 saw the brand enter the domestic market. Westgold Unsalted Butter took out the esteemed ‘Food for Chefs Champion Butter’ award at the prestigious New Zealand Champions of Cheese Awards, which boosted the profile of the brand amongst trade audiences and consumers alike. The accolade immediately accelerated Westland’s
local launch plans, so now Kiwi consumers have the opportunity to experience Westgold’s award-winning butter.Westgold has established a strong position in the butter category as an ‘everyday gourmet’ option, offering high quality at an affordable price, and backed by generations of West Coast dairy farming and manufacturing know-how. Westgold’s Head of Marketing, Charlotte Sullivan, said that the brand has successfully retained around a 10 percent price premium over key competitors, solidifying the brand’s positioning and offering category growth to retailers. Westgold butter has gone from strength to strength since last March, enjoying rapid growth in New Zealand across major retailers, as well as a number of speciality outlets. Within its first nine months in market, Westgold is worth over $1.5 million in retail* - the fantastic result of an extensive $400K marketing campaign across broadcast, print and online advertising. This year, Ms Sullivan said the company’s efforts will be focussed on implementing Westgold’s distribution throughout the North Island to bring the Westgold range to most supermarkets nationwide. Discover Westgold at Westgold.co.nz or contact their team on 0800 949 333. n*SOURCE: Nielsen MAT data to 1
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storecheck
Queenstown
For this month’s Storecheck, we headed down to the South Island and scouted Queenstown’s lively supermarket scene. Apart from a few drawbacks here and there, the six stores we examined provided a pleasant shopping experience thanks to their ranging, layout or friendliness of their staff. Overall, the resort town offers a good level of grocery retail facilities, ready to welcome both local residents and tourists. nb: In store pharmacies are not included in storecheck.
FRESH CHOICE: B This store has a good exterior, signage and plenty of parking for customers. Despite the floors being a bit dirty the lighting of the store was great, with excellent digital shelf pricing. A busy store with lots of customers and tourists, unfortunately, there were merchandisers and boxes blocking the aisles on this visit. Ranging of organic and gluten-free products was large considering the size of the store. Overall a busy store with good product ranging.
STORE EXTERIOR (Max 30 pts) INCLUDING: Outside of the building and grounds tidy, well signed, adequate trolley bays; Windows and exterior clean, tidy; Signage well presented and up to date; Car Parking number of spaces well marked; Trolley condition. FC Raeward Alpine FS CD PnS NW Queenstown Queenstown Queenstown Queenstown Queenstown Queenstown SCORE 25 21 23 25 30 24
STORE INTERIOR (Max 30 pts) INCLUDING: First impressions; Flooring, type, upkeep, clean? Lighting/heating, is store heated/cooled? Lighting adequate and/or task specific? Instore signage; Promo/seasonal products; End of aisle promotions; Condition of fridges, freezers and chilled shelving, condition and layout. FC Raeward Alpine FS CD PnS NW Queenstown Queenstown Queenstown Queenstown Queenstown Queenstown SCORE 22 23 20 19 29 21
STORE LAYOUT (Max 20 pts) INCLUDING: Layout of store, Aisle width; Shelf edge labels/ticketing; State of store, shelving, clean, no damage, neat & tidy; Sufficient number of trolleys/baskets available given shopper numbers. FC Raeward Alpine FS CD PnS NW Queenstown Queenstown Queenstown Queenstown Queenstown Queenstown SCORE 15 16 16 16 18 15
PRODUCT RANGING, AVAILABILITY, CONDITION, FOR SIZE OF STORE (Max 25 pts)
RAEWARD FRESH: B Although there is limited parking for this small store, it was clean and tidy with a market feel. The store layout could do with some work as categories were random and affected the flow. Given the size of the store, it has a significant artisan selection and the fresh produce range was in a designated chilled room. At the time of the visit, there was only one checkout open, but this appeared to be enough for customer levels. Overall, the shopper experience was pleasant.
INCLUDING: Range, stock levels, condition of packaging, use by expiry. FC Raeward Alpine FS CD PnS NW Queenstown Queenstown Queenstown Queenstown Queenstown Queenstown SCORE 18 22 22 19 24 17
GENERAL MERCHANDISE (Max 15 pts) INCLUDING: Range, stock levels, condition of general merchandise, including newspapers, magazines and cards. FC Raeward Alpine FS CD PnS NW Queenstown Queenstown Queenstown Queenstown Queenstown Queenstown SCORE 12 13 14 12 15 13
ALPINE FOUR SQUARE: B The entrance to this Four Square was rather awkward, however, the exterior signage was clean, tidy and clear. It was difficult to find products as there was little to no signage for the aisles. Shelves were fully stocked and staff were friendly and helpful, some even being multilingual which helped with assisting tourists. The delicatessen looked tired and the meat was packed a few days prior. Although a bit drab on the inside, the store was shiny and smart on the outside.
COUNTDOWN: B Difficult to find this big player with new construction and development on the site in front of the store. Tucked away as part of the shopping complex, the store has sufficient parking and a clean and tidy store front. The layout was great with wide aisles and good flow. Ranging across categories didn’t include many new products and lots of restocking needed to fill the many gaps on shelves. A large free-from and organic section as well as a well-stocked and refrigerated wine and beer aisle. Click and collect available, friendly efficient staff.
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STAFF & CHECKOUTS (Max 30 pts) INCLUDING: Staff uniforms and name badges, attitude to customer including acknowledgement, thanks; Adequate checkouts open considering the time of day and number of customers; Speed and efficiency; Checkout area, tidy, merchandised; All counters staffed to levels compatible with customer numbers. FC Raeward Alpine FS CD PnS NW Queenstown Queenstown Queenstown Queenstown Queenstown Queenstown SCORE 23 22 25 24 30 24
FRESH (Max 30 pts) INCLUDING: Variety and appeal, stock levels/merchandising of fresh products, including produce, meat, fish, deli, bakery. FC Raeward Alpine FS CD PnS NW Queenstown Queenstown Queenstown Queenstown Queenstown Queenstown SCORE 21 24 19 24 29 22
INTERNATIONAL CUISINE (Max 5 pts) INCLUDING: Range, stock levels/merchandising. FC Raeward Alpine FS CD PnS NW Queenstown Queenstown Queenstown Queenstown Queenstown Queenstown SCORE 4 4 3 4 4 4
PAK’N SAVE: A+ The new store in town didn’t disappoint with a fantastic store exterior and plenty of carparks. Store layout featured wide aisles, clean and tidy shelving and fantastic use of natural lighting. Queenstown’s latest addition has a very large store footprint, where all the shelves were well stocked with friendly and helpful staff located around the store. Meat display was excellent and the deli and seafood counters well-staffed and stocked. The wine and beer section is stand-alone within the store, this may have more novelty value than an efficient use of the space. Customers seemed very happy with the store layout and shopping experience. A well-received addition to Queenstown.
ARTISAN/GOURMET/INDULGENCE (Max 5 pts) INCLUDING: Gourmet, Indulgence, Local or Artisan products range and stock levels. FC Raeward Alpine FS CD PnS NW Queenstown Queenstown Queenstown Queenstown Queenstown Queenstown SCORE 4 4 2 3 3 4
SHOPPER EXPERIENCE (Max 10 pts) INCLUDING: From carpark to entry to exit - overall shopper experience. FC Raeward Alpine FS CD PnS NW Queenstown Queenstown Queenstown Queenstown Queenstown Queenstown SCORE 8 8 9 8 10 8
NEW WORLD: B
HOW THEY SCORE (Max 200 pts)
Located conveniently by the airport, the Queenstown New World has a clean and tidy exterior with lots of carparks and trolleys available to customers. The store is well-staffed and has a small but good range of artisanal products and international cuisines. Fresh produce was being restocked on our visit and the deli was well stocked with good customer service from counter staff. General merchandise was a let-down with many products ‘temporarily unavailable’. The store featured a good use of lighting and the staff were friendly and helpful.
SCORE
FC Raeward Alpine FS CD PnS NW Queenstown Queenstown Queenstown Queenstown Queenstown Queenstown 152: B 157: B 153: B 154: B 192: A+ 152: B
TOP SCORE
A+ Exceeded shopper expectations to provide the gold class of shopper experience A
Meets all shopper expectations across areas rated
B
Meets most of shopper expectations across areas rated
C
Basics covered with some extras but not all shopper expectations met, improvements required
D Attention needed to areas rated, poor overall shopper experience E
Poor level of achievement in shopper expectations across areas rated
ANTON FEDORCHENKO WINE & BEER SPECIALIST, Countdown Ponsonby
Not long ago, while sipping a delicious cabernet shiraz at the launch of Penfolds’ new-release wines, a very polite and competent young man approached us with a warm smile, eager to pour some wine knowledge into our heads. We know a ‘rising star’ when we see one. Based in New Zealand since 2012, where he settled down with his beautiful Russian-Kiwi wife, twentyfive-year-old Anton Fedorchenko grew up in the highly-developed economic centre of Krasnodar, in Southern Russia. Even though Anton chose a completely different path, his father Alexey, who is a famous cardiovascular doctor back in Russia, has been and still is a deep source of inspiration. “I’m proud of you, son,” is the best compliment Anton said he had ever received. Much more attracted to a world
of food, chefs and ‘the theatre around service’, as he put it, rather than scalpels and operating rooms, Fedorchenko began dreaming of managing restaurants from the age of 12. Over the past eight years, he has been travelling the world to gather the education and experience needed to kickstart a career within the sector, by completing his studies at the HTMI in Switzerland and the BMIHMS in Australia. Looking to make a bigger impact on trade, four-and-half years ago he also became a professional sommelier. “It all
started with various roles in Gault & Millau and Michelin restaurants, where I developed my passion for food and wine to a professional level. Their impeccable service standards, perfect timing and the art that combined it all, made me travel around the globe searching for excellence.” Formerly employed as a sommelier at renowned restaurant Andiamo in Herne Bay, Fedorchenko wanted to become part of something big. So when, in the lead-up to the opening of Countdown Ponsonby, a position as wine/beer specialist became
available, he grasped it with both hands. So far the journey has been an exciting one. “Our biggest challenge, as Countdown’s first premium store, is to change our customers’ perception on what to expect when they enter our door. They don’t expect to have a beer and wine expert on-hand to help them with their decisions, and it does take time to build relationships with customers as I share my extensive knowledge.” Personal engagement remains the most rewarding part of his job, the other being watching the passion ignite in his team. “No two days are the same in my role,” he said. “I like to challenge my team on their knowledge and the targets we need to achieve. It is important that I show them respect, and make them feel valued. There is a saying that ‘fish get rotten from the head’ - this means that if I’m motivated, then my team will be inspired to deliver results.” In the near future, he really would like to make a meaningful impact on wine ranging in New Zealand, so his next career goal is to move across to the merchandise team for the wine category. Meanwhile, he will continue to do what he loves the most: cooking and drinking wine with his wife, and travelling the world in search of new, outstanding wines. n February 2017
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packagingdesign A MASHUP OF FUNCTION AND AESTHETICS Whether through a nostalgic look, standout colours or cleverly customised shapes, choosing the most effective packaging design means sparking an instant connection between consumers and brands. Nearly 60 percent of product decisions were made at the shelf, and 56 percent of consumers said in-store discovery was one of their top information sources for new products, compared to 45 percent for TV ads. That’s what catches shoppers’ eyes, what retailers want from their suppliers, and what you definitely need to look smart, valuable and appealing. The right colour combinations, materials and typography are just the tips of the iceberg. Today, more than ever before, packaging must tell a story, your story, and how it tells it is as important as the story itself. If you are wondering what’s influencing the fmcg industry right now, here’s a look at the top nine packaging design trends for 2017.
4. PATTERNS, PATTERNS, PATTERNS When correctly executed, pattern printing is a dynamic technique that can create a strong, memorable brand identity. There’s nothing wrong or lazy in using repetitive shapes, provided the pattern is bold or playful. Particularly suitable for bakery products and cosmetics.
1. MINIMALISM AT ITS BEST
2. LET COLOURS EXPLODE
Going back to basics by minimising all the elements is a recurring trend and works particularly well with premium dairy products, where the focus is on naturalness, pureness and authenticity. Sticking to a clean-cut design with ultra-minimal imagery and text can make a product shine using simplicity. The risk is dullness.
Bright, vibrant colours are grabbing the spotlight, taking the psychology of colour to uncharted territories and, sometimes, even making words redundant.
5. BE FUNNY
6. DON’T HIDE
Packaging design is increasingly incorporating narrative illustrations as well as a pinch of humour. Clever and quirky designs can trigger an emotional response, contributing to a cheerful brand identity. Customised package shapes, based on the usage or flavour, are also part of this trend. Make your buyers laugh or smile, and half of the work is done.
Modern designers are playing with seethrough windows and small sections through which shoppers can take a sneak-peek. Seen on confectionery, snack foods, biscuits and chips packaging, it vouches for the quality of your product. And there’s no limit to creativity.
8. GO GREEN Today’s consumers care about the impact products have on the planet, so more and more brands are opting for eco-friendly, biodegradable and natural packaging. Check out the latest innovations in this space, like wood fibre, mushrooms or shrimp shells. Some companies have also introduced reusable containers that, instead of going to landfill, can be turned into decoration, education or entertainment items (i.e. playable pizza boxes).
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A recent report from Nielsen in Europe has analysed 9,900 product launches across the EU, finding that package design was a major factor behind the most successful products.
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3. BESPOKE LETTERING Experts see a massive comeback of hand-lettering. Warmer than digital design, custom lettering makes products stand out and infuses consumers with a nostalgic sense of familiarity.
7. FEED THEIR NOSTALGIA Ironically, retro and nostalgic packaging trends have been massively evolving over the years thanks to new technologies and materials. Vintage design is popular with both young and old shoppers, as it either brings back memories or satisfies the curiosity for an unlived past. Feel free to use old-fashioned lettering and colours, but beware of the difference between ‘vintage’ and ‘old’. You better balance the retro ornaments with a sharp and modern look.
9. A SENSORIAL DELIGHT
Eye-catching is a must, but you can raise the bar a little by adding texture on packaging and labelling to provide a multi-sensorial experience. This can be achieved through the use of textured paper or, for those prepared to go a step further, custom materials like wood, silk, jute or leather. A perfect fit for premium products like limited-edition chocolate boxes. (continued on page 24)
packagingdesign A PACKAGING REFRESH CAN REVITALISE SALES Many popular products have not seen a change in their packaging for years. But are they missing an opportunity to energise sales with a refresh? This is a question that’s been posed several times in the past year around the boardroom table at some of Onfire Design’s clients. However, rather than just talk about it, decisions were made to revisit the packaging of a number of products and, so far, the results have made the exercise well worth the time, effort and investment. “We’re fortunate to work with a number
of experienced brand owners that compete in crowded markets and understand the value of standing out from the competition. One of the keys to that is packaging and, even with well-known and successful products, a packaging refresh can have immediate and lasting results,” said Onfire’s principal, Sam Allan. A great example of this is the CRC Car Care range. The undisputed Kiwi king of the category, CRC could see a number of aggressive competitors eyeing its crown. Onfire was given the challenge to modernise the packaging, regain shelf presence and breathe new life into a mature brand. Onfire’s branding and packaging concept nailed the consumer promise, relaunched the entire car care range and solidified it as market leader. The same principle was also applied to the ADOS range. An everyday product in the trade, ADOS sealants, resins and mortar have been trusted for more than 50 years by professionals and home handymen alike. For this project, it was important that the refresh didn’t come at a cost
to existing equity but the subtle modifications reinvigorated the range and gave it fresh momentum. What’s more, Onfire’s packaging expertise isn’t limited to refreshing established brands as a quick review of its website will attest. In fact, new product launches including name development, logo design as well as packaging are exampled in this up and coming agency’s CV. “We’re young and fresh but also very experienced,” said Sam Allan. “In fact, the arrival of Grant Alexander, one of New Zealand’s most celebrated designers, provides
It’s what’s inside that matters, but it’s what’s outside that sells.
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us with a unique blend of talent with the experience, passion, creativity and attention to detail required for this specialised craft.” And when you combine that with Onfire’s capabilities in the everexpanding digital arena, it’s easy to see why this is an agency running hot. To discuss your next creative project, contact Onfire’s managing director, Sam Allan, on 021 608 204 or sam@ weareonfire.co.nz. More information at www.weareonfire.co.nz. n
They say you shouldn’t judge a book by its cover or a wine by its label. But that’s what people do, which is why we’ve designed so many book covers and labels for wine. Get in-touch to see what we can do for your brand Andrew Sparrow andrew@triedandtruedesign.co.nz Trudy Hunt trudy@tried andtruedesign.co.nz
packagingdesign IT’S LOVE AT FIRST SIGHT
The way to foodies’ hearts is through their stomach and their eyes. With this in mind, Van Dyck’s founders Ingrid and Marcel have worked with Dow Design to reinforce their Marcel’s brand image and get across the products’ promise of being ‘the lightest, fluffiest pancakes you’ll ever enjoy’. “Every innovation starts with a big idea, but it’s how you tell its story that makes an impact,” said Rafael Porto Carrero, marketing and communications manager, who is also the founders’ son. “Nearly 100 percent of firsttime consumers will buy your
product based on a first time visual impression, so we want to make this count.” Through the use of bright, optimistic colours, a simple yet bold design, and over-the-top food photography, the newlook packaging achieves maximum shelf standout while also communicating the pleasure of pancakes. “We are always innovating, trialling and creating new products, and Dow helped us restore some order from the chaos with a product architecture system that makes everything simple and clear,” said Porto Carrero. To cleverly inject some happy vibes, Marcel’s frozen products have just been renamed to ‘Happy’ Pancakes, ‘Ooh La La’ Crepes and ‘Fancy’ Blinis. In March, Marcel’s bakery products will also undergo a rebrand, including Happy Pancakes, Petite Pancakes, Double Love Sweet Crepes and Ooh La La Crepes Gluten Free. The company aims to launch a new protein pancake this year and is now in the process of trialling it.
When Belgium-born Ingrid Vercammen and Marcel Naenen founded their ‘Marcel’s Pancakes’ business in 1999, they brought to NZ their European passion for engineering and Belgian bakery, in the form of a fully automated plant. Their premium pancakes are targeted to busy, affluent people who like
convenience. “We make them taste exactly like they were made a minute ago. Our point of difference lies in providing quality and consistency. Plus, we are the only pancake brand that is readily available in the bakery and freezer section of all supermarkets.” n
WORKING WITH CLIENTS TO WIN FANS. NOT CHASE CUSTOMERS. PACKAGING HAS A TASTE
clients@coatsdesign.co.nz coatsdesign.co.nz
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“They say you shouldn’t judge a book by its cover or a wine by its label. But that’s what people do, which is why we’ve designed so many book covers and labels for wine,” said Andrew Sparrow, partner and creative director of Tried&True. According to Sparrow, it’s what’s inside that matters, but it’s what’s outside that sells. “Every purchase is an emotional one, and even generic products are bought because of an emotional trigger. ‘I liked the look of this
one’, ‘This one seemed more like me’, ‘I quite like red’. And that’s what we do at Tried&True,” he said. “Sure, we make things look beautiful, but more importantly we make things look beautiful to the eyes of the specific demographic that you want your product to appeal too. Because that’s what sells products. And the design that shifts the most units is the most beautiful design in the world.” n
BEAUTIFUL, MEMORABLE AND ICONIC
JULIAN RAINE, CO-FOUNDER OF AUNT JEAN’S DAIRY
Packaging is a major influencer and consideration for consumers. Research shows that packaging plays an important role in the purchasing decision process and perception of a brand. O-I New Zealand understands how to use packaging to elevate a brand’s unique identity. Makers of glass, the world’s most natural and sustainable packaging, O-I New Zealand has supplied packaging to the largest brands in food and beverage industries for decades. “Glass is made from three natural ingredients: sand, limestone and soda ash,” said Bayard Sinnema, business
sales manager, O-I. “A glass container is infinitely 100 percent recyclable. Our glass products contain an average of 70 percent post-consumer recycled glass which is collected via council kerbside recycling schemes. In addition to sustainability benefits, research shows that consumers believe food and beverages taste better in glass. Glass acts as a natural barrier, it’s virtually impermeable to oxygen, helping to keep the contents fresh and full of their natural vitamins, and other health benefits.” Glass is also brand building, Sinnema added. “Glass can take on a range of shapes, colours and textures. It’s beautiful. It’s memorable. It’s iconic. You can feel its quality in your hand, that’s why glass is at the core of building thousands of successful quality and premium brands.” Julian Raine from Aunt Jean’s Dairy agrees, having recently launched milk fresh from the farm back into one-litre glass bottles. “The aim of the product is to provide a specialty item which firstly is in glass, secondly is from A2 tested cows and thirdly is fully traceable milk back to our farms,” said Raine. “We firmly believe that milk in glass tastes better. We know that New Zealanders were reluctant to shift to plastic. We think the time is right to provide a way for them to drink milk fresh from the farm in glass bottles”.
Farro Fresh was the first retailer to launch the brand to market. Chilled category manager Hamish Fleming pointed out that, as a single family farm producer, Aunt Jean’s aligns closely with the values of Farro Fresh and what the premium fresh food market wants to deliver to its customers. “All of the elements combine to make an excellent premium quality milk; sourcing from a single grass-fed herd, minimal processing and on-farm bottling gives the milk real integrity.
The glass packaging helps to preserve that integrity even more, it’s great for the environment and has real nostalgia factor too,” Raine said. Aunt Jean’s is also available in Raeward Fresh in Nelson, Moore Wilsons with plans to go nationwide this year. To find out more, visit www. auntjeans.co.nz or www.facebook.com/ auntjeansdairy. For more information on glass and recycling, visit www. recycleglass.co.nz. n
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packagingdesign ENGAGING CUSTOMERS THROUGH DISCOVERY
BY MATT GRANTHAM, CREATIVE DIRECTOR, COATS DESIGN LTD
In today’s digital world, winning fans is all about engagement through discovery. Social media, owned channels and word of mouth are all part of the weave that empowers the consumer to discover what is relevant to their personal needs, satisfies their desire for authenticity and gives them a sense of personal determination. We’ve noted how the media model of quick, small bites to create that initial ‘hook’ is now flowing through to packaging design. De-cluttering front of pack and simplifying hierarchies, bolder display of logos and typography, simple yet
WE HAVE A ‘WICKED PROBLEM’
BY SHARON HUMPHREYS, EXECUTIVE DIRECTOR PACKAGING COUNCIL OF NEW ZEALAND
If 2017 is going to be the year when New Zealand gets serious about packaging waste issues, we first have to have an honest conversation about packaging. Unfortunately, the need for sensible discussion and objectivity in this space has eluded us year after year. It is easier, it would seem, to play a blame-game directing responsibility for packaging proliferation at some global packaging industry conspiracy rather than acknowledging the inescapable, definitely inconvenient, fact that it is consumerism which drives packaging demand, not the other way around. At the most basic level, packaging provides containment for the product, preventing spoilage and damage.
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compelling copy, strong imagery and vivid colour blocks are the new design tools being used to seize consumer attention. And with this, back of pack has become an essential adjunct to express the greater narrative, enticing consumers to online platforms, to round off the experience. At Coats, we maintain that packaging design can’t be developed in isolation of overall brand creation. It’s an integral element of the brand influence; as such, every aspect of the packaging needs to integrate seamlessly with all other expressions of the brand/product exposure. Packaging still stands as a key part of the purchasing decision, especially in FMCG, but it’s now just one element of the consumer purchase ‘experience’. We strongly believe on-shelf will continue to be a frontline motivator, helping to forge connections. However, it’s important that packaging design adapts to these new platforms, as an essential factor in winning over loyal fans, not just consumers. n
Without it, we would squander the resources that are embedded in the products themselves. But consumerism has also created a market for packaging which goes beyond simple physical containment and into the realms of functional enhancement and sensory delight. Consumerism has blurred the lines between what we need from packaging and what we want from packaging. This has come at a cost. Fuelled by ever-increasing technological capabilities, packaging enables products to meet society’s desires and demands which reflect our lifestyles, aspirations, demographics and wellbeing. Enhanced functionality in packaging design, and innovations in packaging materials, are contradictorily responsible for a proliferation in packaging and a reduction in the resources it takes to effectively and efficiently produce and deliver goods. Quite simply packaging has become a wicked problem. (A ‘wicked problem’, according to Wikipedia, is a problem that is difficult or impossible to solve because of incomplete, contradictory and changing requirements that are often difficult to recognise.) So, if we are going to challenge the waste created by packaging, we first have to be prepared to challenge the very core of consumerism. The next challenge we need to OWNED
DIGITAL PRINT CAN ADD VALUE In late 2015, Mondelez-owned Oreo launched an innovative campaign in the US called ‘Oreo Colorfilled’ as part of a wider customisation strategy, inviting consumers to design their own packaging online or on mobile, adding colour, graphics and the recipients’ names. Tapping into the publishing craze for adult colouring books, the packages were printed using an HP Indigo WS6800 digital press. According to Christian Menegon,
acknowledge - another inescapable fact - is that New Zealand is a land of limited resources and limited influence in the global consumer-goods market. That is not an excuse to do nothing, but does dictate what is economically and environmentally intelligent to do. The nature of ‘wicked problems’ is that often what is sensible to do is generally more complex and less sexy than fits into a 10-second media sound-bite. PAC.NZ is thankful that the Minister for the Environment is aware of the complex nature of packaging and waste management and the need for cost-effective, lasting solutions. But just imagine what could be achieved if the regulators, local authorities, industry and community could find common ground and work together instead of fostering fragmented recovery solutions, cherrypicking materials for recovery based on ‘popular’ demand rather than evidence-based facts to establish if ‘doing the right thing’ is in fact the right thing to do, and implementing ad-hoc schemes which are resource inefficient across a whole raft of lifecycle environmental indicators. If we can move beyond our differences and are prepared to embrace what we can’t and shouldn’t do, we will be a long way towards finding common agreement on what we can and should do. I would like us to prioritise what particular packaging waste issues we
business development manager, HP, print can make packs intelligent and add them value. “Brand owners can do as much advertising as they want, but it’s not until the consumer buys the product that the deal is done. Shapes, material, color and print are all important, but there is no chance to have an interaction with a consumer if it is static,” said Menegon. The companies that can interact with the consumer one-on-one are set to win. “How would you be tempted to return to a certain brand if there was no value for you? You want something that talks to you; you want something regional; seasonal; whatever the reason, the brand has to motivate the consumer to interact with it.”
A ‘wicked problem’, according to Wikipedia, is a problem that is difficult or impossible to solve because of incomplete, contradictory and changing requirements that are often difficult to recognise. want to see addressed as a country. Then we can determine if and where intervention is required, what resources are already in place, provide analytical assessment if these resources are enough, and if not, establish what else is required and from whom. n
Crunchy Miniature Treats For RadiantLooking Skin
Kiwis can now deeply cleanse, balance and purify their skin with the new Essano Clarifying Clay Masque. Containing certified organic rosehip oil, shea butter, clay and aloe vera, this masque is perfect for any skin type. While many clay masques are drying to the skin, Essano’s new offer rejuvenates and clarifies impurities gently without stripping the skin of its natural oil. The skin is left feeling soft and smooth, and looking radiant.
In the lead up to Easter, Cadbury has partnered with Oreo again to create its outstanding, limitededition Oreo Creme Eggs. These crunchy, miniature treats are another match made in heaven, combining delicious chocolate with fragments of Oreo biscuits and sweet vanilla cream. To please all palates, the more ‘traditional’ Cadbury Creme Eggs are also available. “While they share a similar eating occasion, that’s where the similarities end,” said the company in a statement. “Cadbury Creme Eggs and Cadbury Oreo Easter eggs are two very different tasting eggs.” They are sold in different formats, including 34g individual eggs and 190g gift boxes.
Organic Take On Breakfast
The new Weet-Bix Organic offers the ideal solution for organic-conscious Kiwis who love to eat well and don’t want to compromise on their healthy approach to life. Featuring all the taste and wholesome goodness of Weet-Bix, it is made from certified organic wheat, boasts a 5-star health rating, and is low in sugar and high in fibre. “Consumers are increasingly keen to live a conscious, balanced life with an awareness of what they are putting into their bodies,” said Sanitarium spokesperson Jessica Manihera. “New Weet-Bix Organic gives them the option of the breakfast cereal they know and love, that’s also certified organic.”
AT THE FOREFRONT OF THE BAN ON MICROBEADS Comprehensive sustainability policies are now the standard across the operations of responsible companies, with those in the New Zealand’s food and grocery sector leading the way. Most members of the Food and Grocery Council have demonstrable and publicly stated policies around such things as water use and conservation, sensible and renewable energy use, biodegradable and/or recyclable packaging, and using ingredients from sustainable sources. It’s all about being responsible citizens and guardians of the environment. Such sustainability was a recurring theme in a series of video interviews that FGC conducted with company leaders during 2016, and which are available on our website. No surprises, then, that when the Government launched a discussion paper in January proposing to ban the use of plastic microbeads in personal-care products by 2018 there was not a murmur from our part of the industry. Because our member companies have either largely already
eliminated the beads from their products or are in the process of doing so. Plastic microbeads are particles of plastic between 1mm and 5mm in size that are used as an exfoliation ingredient in some personal-care products. They can be spherical or irregular in shape and are produced in a multitude of colours. They have been around for several decades, being patented in the 1970s, but have come into common use only in recent years. In the past, they have been used in hundreds of products, from deodorant, shampoo, hair conditioner, shower gel, lipstick, hair colouring, shaving cream, sunscreen, insect repellent, and
anti-wrinkle cream, to moisturisers, hair spray, facial masks, baby care products, eyeshadow and mascara. All microbeads in New Zealand products were imported. The problem is that they are too small to retrieve or recycle, are not biodegradable, and could be mistaken by marine life as food, potentially causing long-term damage to fish and mussels. Many consumers made it clear they didn’t want microbeads in their products, and FMCG companies heard this feedback and started removing them from products as early as 2014. A survey undertaken last year by FGC of both its members and others in the wider industry revealed that many are now not
For Any Sunny Day
Rosé is the perfect light, slightly sweet and fruity wine for a sunny day. Graham Norton’s ‘Pink by Design’ Rosé wafts aromas of raspberry, strawberry, lime zest and melons. Fresh, lively and impeccably balanced, it’s an intense yet easy drinking wine that’s perfect for any occasion, especially with charcoal-grilled chicken and pork, or with a leafy green salad and piquant zingy dressing. Best enjoyed slightly chilled, and available at an RRP of $18.99.
using them or are well down the track of their reformulation. Supermarket brands containing microbeads have largely gone already. I couldn’t find any when I checked my local supermarket’s shelves. FGC now has no members who both manufacture and sell products with microbeads. Our members include GSK, L’Oreal (including Body Shop, Biotherm) Johnson & Johnson, Procter & Gamble, Beiersdorf (Nivea), Blackmores and Unilever. The reason the beads have not been removed instantly is that reformulation is often complex, and companies wanted to find substitutes that still gave consumers a product that did the same job. Biodegradable alternatives are available and are already being used in some brands. They include apricot kernels, ground nuts and shell, salt, charcoal, sand, sugar, pumice and oatmeal. While FGC members have done the right thing, it’s disappointing that some products with plastic microbeads remain available online. It will be up to consumers to play their part and stop purchasing them. FGC supports the Government’s proposal for the ban to take effect on 1 July next year, which will beat the US target of 2019. But I anticipate moves by the industry will beat both of those targets. n
Katherine Rich
Chief Executive NZ Food & Grocery Council
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NZ’s First Probiotic Muesli
Versatile Snack For Summer
Up-and-coming muesli maker Something to Crow About continues to deliver on its mission to serve up bowls of goodness to breakfast lovers across NZ. Following the success of its premium mueslis, the company is now debuting New Zealand’s first probiotic muesli range. Two delicious new muesli flavours are available; Trio of Supreme Nuts and Berries and Pure Almond Maple and Cacao (paleo blend). Both are boosted with GanedenBC30, an allergen-free probiotic that, together with a balanced diet and healthy lifestyle, may help support digestive and immune health. Something to Crow About’s probiotic muesli survives ten times more efficiently than yoghurt cultures and is shelf stable, which means it doesn’t require refrigeration.
Perfect Contrasts At Home
Daily Source Of Fibre Weet-Bix Gluten Free Cinnamon & Coconut boasts a unique combination of flavours and is a source of daily dietary fibre. With tasty coconut, rice puffs and a hint of cinnamon, this product provides a nutritious start to the day, being the perfect choice for coeliacs and those avoiding gluten. Made from 77 percent wholegrains, Weet-Bix Gluten Free Cinnamon & Coconut has a 4-star health rating and is packed full of B vitamins and Vitamin E, which helps protect against cell-damaging free radicals.
Chris Goad NZ COUNTRY MANAGER SC JOHNSON
Schwarzkopf Nordic Feather Balayage is the first paint-on feather balayage at-home system, inspired by fashion and perfected by professionals. Whatever the emergency, Kiwis can easily achieve the feathering technique themselves, all from the comfort of their own bathroom. Thanks to the easy Feather Brush, this product creates the perfect blonde depth with salon-quality colour lifting up to five levels, and with easy instructions that make at-home colour a breeze.
Judging by our albeit partial - chatty journey through the food and beverage market, there seems to be a new wave of young, foreign ‘brains’ making their mark at the highest levels of New Zealand business. Canadianborn Chris Goad, NZ country manager for SC Johnson, fits the profile. We met him on a sun-drenched summer morning at SC Johnson’s headquarters, which boast a sizeable deck with panoramic views on Auckland CBD’s high-rises. Inside, the office was silent. Most employees, he explained, were out in the field. “My proudest day is when I come in and I don’t see anybody here,” Goad said, smiling. “If you want to get your products onto shelves, you have to deal with Countdown and 200 people at Foodstuffs. It’s not two, it’s 200, and your team must appreciate that face-toface relationship. The return investment
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that you make from getting out of your office is second to none.” But let’s go back to the year 2000. A talented young golf player, Goad received a four-year athletic scholarship to attend university in South Carolina, USA, where he obtained a Bachelor of Commerce majoring in Marketing. By then, Red Bull was ready to hit the Canadian market and Goad became their first employee. Within a year, the branch grew from five workers to about a hundred and, in seven years’ time, Goad went through seven or eight promotions, taking on responsibility for sales in the 13-million-people Ontario market. In 2010, Goad moved to NZ and joined Colgate, where he later spent five years managing Foodstuffs and Progressive. Despite some similarities between New Zealand and his birthland, the decision to pursue a career an ocean away from home hasn’t always been a soft landing. He found a deeply ingrained culture, where people were likely to get hired based on who they knew rather than their experience. “Field team is a critical topic in New Zealand, and new ideas can be rejected because they conflict with how things have always been done. It’s a problem of trust, and people who come from outside, even from Australia, get that.” In 2015 Goad joined Fonterra, where he soon became the general manager for Grocery, leading a 240-staff representing the largest FMCG supplier in NZ. When SC
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Johnson began looking for a country manager who knew New Zealand and its grocery landscape, the company turned to him. “At Fonterra, the culture was bigger than anyone else, and SC Johnson feels that way. To be able to sell outstanding, multinational brands while also leaving your own footprint on the business is just amazing.” The key to being successful in New Zealand, he added, is having a NZspecific strategy, which also means investing in local offices and resources. “Over the years, many companies have struggled to understand this and took their resources out of the country.” He feels NZ grocery is in good hands right now, with competent people at the top and several store owners who take pride in their businesses. Plus, local suppliers are fostering innovation by bringing in younger talent. “They make very clear that New Zealand is not just a two-year training ground, and that’s a massive difference from ten years ago.” As for his 18-strong sales team, Goad wants to help them up the career ladder. “My aim for them is to have my job one day, rather than being sales manager forever. It would be my ‘number one legacy’ for the future of this organisation,” he said. “That’s why I would never advertise for a senior role. If they don’t get that role, it means we’re not hiring the right people.” n
ANOTHER SWEET SUCCESS FOR ISM Nearly 38,000 trade buyers from more than 140 countries attended the latest ISM, the trade fair for sweets and snacks held in Cologne from 29 January to 1 February 2017. The four-day event attracted decision-makers from all trade channels, along with 1,649 exhibitors from 68 countries. Held parallel to ISM was the international supplier fair ProSweets Cologne, which saw an attendance of 17,000 trade visitors from over 100 countries. Both ISM and ProSweets Cologne will return from 28 to 31 January next year. “ISM once again confirmed its international position as a global platform for the sweets trade. Furthermore, we were able to further reinforce our position with a slight growth in the number of exhibitors,” said Katharina C. Hamma, chief operating officer of organiser Koelnmesse GmbH. Among the topics of discussion were the consequences of Brexit and possible restrictions in the US. New products and marketing ideas also took centre stage, and large trading companies from Europe, North America, the Near
East and South America were wellrepresented, with a significant growth in the number of visitors from Japan, India, Pakistan and the Baltic region.
INNOVATION IS A CROWD-PULLER
Several hundred trade visitors took part in the voting for the top innovations again this year, choosing from 220 entries. The winners of the ISM New Product Showcase were the Bad Luck Cookie by Hamburg-based company Pechkeks GmbH, Organic Veggie Box by my ChipsBox GmbH and Pralibel Dômes by Pralibel NV. In contrast to its counterpart, the fortune cookie, The Bad Luck Cookie doesn’t offer comfort nor does it predict strokes of good fortune. Instead, its messages are ‘blunt, honest and direct,’ which makes this pitch-black cookie ideal for people who don’t take themselves too seriously. Organic, vegan and gluten-free, the ‘Organic Veggie Box’ contains a combination of three crispy, natural and air-dried vegetable crisps, packed
inside an elegant and compact box. The third place went to Belgian-based ‘Pralibel Dômes’, a noble mixture of filled chocolates coming in an elegantlydesigned box. Additionally, the ISM Packaging Award was also presented for the first time, and the winner was the Barbecue Marshmallow Grill Bag by tri d’Aix GmbH. Designed for real barbeque lovers, the packaging looks like a bag of barbeque charcoal, with a window
offering a sneak-peek of its content.
JAPAN TOOK OUT THE ISM AWARD
A Japanese company took home the ISM Award 2017 at an official prize-giving ceremony held on 29 January. The award, which recognises exceptional services in the sweets and snacks industry, was presented to Gota Morinaga, representative director of the Morinaga Company. A jury of international representatives from the industry, trade and field of science took into consideration the company’s philosophy—”Delicious, Fun, Healthy“— as well as its social commitment. In his thank-you speech, Morinaga stressed the value of international trade and said that attending ISM for more than 20 years had contributed towards a good and trusting cooperation with all trading partners. n Last Word takes a little break this month and will return in the next issue with its witty mix of humour and critique.
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www.omegaseafood.com February 2017
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Oriental Merchant Your Asian Food Specialist
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