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February 2019 • Vol. 12 No. 2
reducereuse recycle
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editorialcomment CHECKOUT OPPORTUNITIES ABOUND Caitlan Mitchell Editor
caitlan@reviewmags.com
Reduce, reuse, recycle. Three simple words that are critical to today's businesses, but words that have had a resounding effect at the checkout. From angry customers yelling at checkout staff about the lack of a bag, to the loss on impulse sales when customers come in for milk but then leaving with only milk whereas previously they would buy other items. Research in the UK has shown a downturn in impulse sales with the lack of a bag the reason given by those interviewed. Customers are only buying what they can carry, which has impacted sales. All of us are in the transition of reducing plastic and other areas of waste – but we also have to be at the ready with an informed position for our customers about where the business is at about reduce, reuse and recycle. Be sure to sit down with your team and talk about the steps your company is taking to become more sustainable, keeping them well informed for when customers
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have a query then your staff will be ready as conscious consumers march down the aisles with their tote bags flying. On that note, with the use of reusable bags, how do you keep track of shoplifting? Shoppers putting groceries directly into reusable bags as they shop is now commonplace. As is the use of paper bags which obscure what is in them. Both pose a problem with shoplifting, and reports of shoppers doing a runner through the checkout with their filled reusable bags have increased. I guess at the end of the day; opportunistic theft has always been a problem, its just now we’ve given them a bag to carry the stolen goods home in. Meanwhile, frozen continues to show exponential growth globally. Research suggests that there is some work to do around consumer education, product use and range extensions. The convenience of frozen to consumers is undeniable, and NPD beyond frozen vegetables and sides to product offerings that shoppers would consider meal solutions looks promising. There's no getting away from it – frozen foods are on the comeback trail, and we will be watching this category with interest. Producing good content is hard work and takes a healthy budget, and
digital is no exception. Though grocery was slower to the digital party than other sectors, the reasons for the slow uptake are real. Getting good digital content is challenging, and never more so than in product use imagery and video production. In an industry that is traditionally less agile, moving quickly to get planning early for digital assets is essential. When there is no image or video library, it’s difficult to have nothing to work with, and templated content just won't cut it. Packaging continues to hit the headlines and emphasises the need to challenge every packaging decision. While the gender issue backlash on Whittaker’s new chocolate is a hot button, the broader question is the relationship between a confectionery company and Plunket in a market where obesity and diabetes are a genuine health concern. Trend Watch: manufacturers can be encouraged that Pacific Rim flavours are heavily trending overseas. There is a lot of product coming through with manufacturers launching new lines with tropical fruits like guava, pineapple passionfruit, mango and coconut.
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
www.fgc.org.nz March 5: Foodex Japan 2019
May 14: SIAL China
March 19: Emerging Leaders Forum 2019, Eden Park
May 15: KAM Networking, ASB
April 2: FMCG Expo 2019, Auckland University
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05 Health Feature 09 Reduce Reuse Recycle 18 What's New 22 Store of the Month 30 Global What's New
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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 2018
CHAIRMAN Peter Mitchell, peter@reviewmags.com
EDITOR Caitlan Mitchell, caitlan@reviewmags.com
SENIOR DESIGNER Raymund Sarmiento, raymund@reviewmags.comå
PUBLISHER Tania Walters, tania@reviewmags.com
EDITORIAL STAFF Georgina McKimm, georgina@reviewmags.com Mark Fullerton, mark@reviewmags.com
GRAPHIC DESIGNER Ciaran Carroll, kez@reviewmags.com
ADVERTISING SALES Felicity-Anne Flack, felicity@reviewmags.com
ISSN No.
GENERAL MANAGER Kieran Mitchell, kieran@reviewmags.com EDITORIAL DIRECTOR Sarah Mitchell, sarah@reviewmags.com
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1173-3365
Suite 9, Level 3, 20 Augustus Tce, Parnell, Auckland PO Box 37140 Parnell, Auckland Tel (09) 3040142 Fax (09) 3772794
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
news BEER AND CIDER AWARDS UNDERWAY
The New World Beer & Cider Awards have returned with more chances for local breweries and cidermakers to land their best brews on supermarket shelves. A change in format this year will see an expanded panel of judges select the Top 30 beers and ciders, which will be rewarded with prime space and promotion in New World stores nationwide. The next 70 highest ranked beers and ciders will be Highly Commended, and together they will be celebrated in a Top 100 list featured on the New World website. The awards are an unprecedented opportunity for brewers to build their brand and reach an engaged national audience overnight. Judging will be held in March and shoppers can buy the country’s best beer and cider at their local liquorselling New World in mid-May. n
CADBURY DOWNSIZES Cadbury faced backlash as the company announced the downsizing of its family-sized chocolate blocks. The company announced via its Facebook page that the block of chocolate would be reduced in size from 200g to 180g. Marketing director for Cadbury, Paul Chatfield, explained that the reduction was due to an increase in production costs. “Over time as business costs increase and we look at how we can continue to offer Cadbury fans the chocolate they enjoy at an affordable everyday price, we need to either raise the recommended retail price of our products or reduce the size of our blocks. We’re conscious of cost pressures facing Kiwi households, so we’ve chosen to slightly reduce the size of our blocks to ensure Cadbury fans can continue to enjoy the taste, quality and value they expect from our brand.” Last year Cadbury updated its Roses chocolates, much to the dismay of fans. More recently the brand made a change to the shape of its Marshmallow Eggs igniting further backlash from chocolate lovers. n
BURNING HOT PACKAGING
Onfire Design has been ranked amongst the world’s best design studios. The North Shore-based design studio was ranked 10th by the World Brand Design Society at its end of year awards. Onfire Design had a notable year taking home Gold at the 2018 New Zealand Best Design Awards and awarded Gold and Silver by World Brand Design Society for its packaging design work for Manuka Emporium honey and weLove Luxerose Cocktail kit. World Brand Design Society is an independent UK design resource for consumer packaging and corporate brand designs and trends. n
GRANTS FOR CHARITIES
Three New Zealand charities nominated by Auckland blogger Maria Foy have each received $25,000USD grants from the Newman’s Own Foundation. The Newman’s Own Foundation invited Maria to
nominate charities to share $75,000USD in grants, and she put forward three options that were close to her heart. The three charities that were selected are the Auckland Women’s Refuge, KidsCan Charitable Trust and Perinatal Anxiety and Depression Aotearoa. Foy said she was delighted that Newman’s Own Foundation has added its support to these very special charities. In addition the foundation is also inviting local charities to apply for $300,000 worth of grants. This year Newman’s Own Foundation has committed $225,000 in grants ranging from $25,000 to $50,000 for children’s nutrition projects across the country. In addition to these grants, $75,0000 will be made to other organisations around the country. The closing date for applications is the 4 March 2019. n
PICK OF THE BUNCH
NZ’S CHEESE CULTURE
According to the New Zealand Specialist Cheesemakers, New Zealanders are becoming more adventurous with their cheese taste. The speciality cheese market is growing and expanding, and its influence on the wider cheese market is becoming more pronounced. The fastest growing New Zealand-made speciality cheeses are halloumi, cheddar, mozzarella and gruyere. Neil Willman, Chair of the New Zealand Specialist Cheesemakers Association, encouraged Kiwis to continue searching for more cheeses to try. The growth is positive, but he would like it to keep expanding. “New Zealanders consume an average of only 8.2 kilograms per person annually, compared with Australians, who eat an average of 14.7 kilograms per person— both of which lag far behind the global leader, Denmark, with an average consumption of 28.1 kilograms per person.” n
Sales of All Good Bananas through Foodstuffs stores have contributed $1 million in Fairtrade Premium funding to the El Guabo Association of Small Banana Farmers. The Fairtrade Premium is an additional payment that comes from every bunch of All Good Bananas sold over and above the fair price All Good Banana growers are paid. This additional funding is used to improve the economic, social and environmental quality of life of the El Guabo farmers and their community. Through the program, All Good Bananas have been able to fund a special needs school for children and a free 24-hour medical centre with two respiratory specialists. They have also been able to provide school packs to children as well as invested in the continued education and tools required for soil improvement, soil water analysis and promotion of biodiversity. n
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STEINLAGER NAMED SPONSOR
SUPPORTING SUSTAINABLE SCHOOLS
Steinlager will return as official sponsor of Emirates Team New Zealand’s defence of the 36th America’s Cup – here on home waters. Steinlager’s loyal support of New Zealand yachting and Emirates Team New Zealand spans over 30 years. Rory Glass, Lion NZ managing director is excited and honoured to be back sponsoring the team. “2021 will be our 35th year of support as the team endeavours to keep their hands on the oldest trophy in international sport. We will be revealing more plans later in the year on how we will bring our sponsorship to life off the water as well – with epic environments for fans to support Emirates Team New Zealand across the country.” Grant Dalton, Team New Zealand’s CEO, added “Steinlager is a truly iconic Kiwi brand that has always stayed strong
Countdown has awarded $25,000 worth of grants to young Kiwi conservationists, gardeners and environmental champions from 30 schools across the country. As a result, the children will now be able to kick-start their sustainability projects. The Growing for Good grants aim to help primary and intermediate schools fund a range of projects which are focused on protecting Aotearoa’s precious environment. Countdown’s general manager of corporate affairs and sustainability, Kiri Hannifin, said that they were blown away by the huge number of applications they received from schools across New Zealand. “We were so impressed by the creative ideas demonstrated in this first round of Growing for Good applications.” n
and believed in Emirates Team New Zealand and our quest for the America’s Cup. They’ve been on the boat for every win we’ve had, and we had Steinlager in our hand when we grasped the Cup in Bermuda in 2017 – a ritual we plan to keep alive in March 2021.” n
NZSCA REVEAL NEW AWARD
The New Zealand Specialist Cheesemakers Association has added a new accolade to its awards. This year the NZSCA will recognise cheese retailers at its 2019 NZ Champions of Cheese Awards. NZSCA chair, Neil Willman explained that the Huntley & Palmers Favourite NZ Cheese Shopping Experience 2019 will recognise retailers’ efforts to promote New Zealand cheese. “The award provides an opportunity for the Association to raise the profile of New Zealand-made cheese and explain to consumers the reasons to buy
local.” The winner of the new award will be announced at the 2019 New Zealand Champion of Cheese Awards in Hamilton on Tuesday 21 May. n
Ideas Served Hot
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healthfeature SUNSCREEN STANDARDS A SHAM New Zealand and Australia continuously rank the highest on the worldwide Skin Cancer Index. Skin cancer is one of the most common cancers affecting Kiwis, with the 2018 Skin Cancer Index stating that New Zealand has close to 2,500 new cases of melanoma each year. With this many cases, it is staggering to think that New Zealand sunscreen testing is voluntary and that the government has no mandatory standards in place.
So how is this possible? Under New Zealand regulations sunscreens are listed under cosmetics. Medsafe Guidelines on the Regulation of Therapeutic Products in New Zealand classify cosmetics as “any substance or mixture of substances used or represented for use for the purpose of beautifying, improving, protecting, altering or cleansing the hair, skin or complexion of human beings.” This means that sunscreens are listed amongst shampoos, cleansers, deodorants and moisturisers. While there are no regulations around sunscreen, Medsafe does encourage companies to “market only sunscreens that comply with Australia and New Zealand Sunscreen Products – Evaluation and Classification.” New Zealand last updated its sunscreen standards in 2012 with the introduction of the sun protection factor (SPF) with a recommendation for brands to aim for an SPF of 50 plus. At the time chief executive of Standards New Zealand, Debbie Chin, said that the new legislation would help towards preventing skin cancers and melanoma in New Zealand. “Raising the SPF limit was the decision of a panel of experts who believed this will result in a much better product on the shelves and will better protect Australians and New Zealanders from the harms of the sun.”
The standards also stated that: •
•
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The term ‘waterproof ’ was misleading and not permitted. The Standard acknowledges that sunscreens will wash off when immersed in water. The term ‘sunblock’ was misleading and not permitted because it may be interpreted to mean that 100 percent of the sun burning radiation is blocked. The term ‘sweat proof ’ was misleading and not permitted. ‘Sweat resistance’ is not a substitute for ‘water resistance’.
At the time of the revision, the standards were considered to be a big step in the right direction. However, without any mandatory testing in place, companies have been able to make SPF claims without any evidence to back them up. Earlier this year, Consumer NZ tested ten sunscreen brands with only three found to meet the specified SPF labelled. The report found that brands such as Neutrogena Ultra Sheer Face & Body Dry-Touch Sunscreen Lotion claimed to have an SPF of 50, in fact, had a tested SPF of 42. Consumer NZ tests revealed that Banana Boat SunComfort Sunscreen Lotion SPF50 actually had a mere SPF of 17. In 2017 Consumer NZ testing resulted in two products being taken off the market as they failed to provide the protection claimed. The testing performed by Consumer NZ caused controversy as many brands called the testing unsubstantiated. The New Zealand Cancer Society announced earlier this year that it was in dispute with Consumer NZ over the tests stating that the two had conflicting test results. “We are confirming that our independent testing and re-testing on the same product conducted in 2018 and 2016 shows the SPF50+
Kids Pure returned results of SPF 60 and SPF 67.6, well above the label claim (SPF 50+). On the other hand, Consumer NZ is claiming its testing shows the sunscreen was SPF 41,” explained Cancer Society CEO Mike Kernaghan. The ongoing disagreements and controversial testing results are further proof that New Zealand needs to install mandatory testing for sunscreens. Consumer NZ believes that the government needs to make the sunscreen standard mandatory as part of the upcoming review of therapeutic products. “We’ve been campaigning for a mandatory standard for years. In a country with one of the highest rates of skin cancer in the world, it’s not good enough that sunscreens can be sold that don’t meet their label claims,” said Consumer NZ chief executive Sue Chetwin. While New Zealand and Australia share the same standards for sunscreens, Australia makes it mandatory for sunscreens to prove they meet the standards before they can go to shelf. The New Zealand government should follow suit and implement mandatory testing before a sunscreen protection product is allowed onto the shelf. n
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healthfeature MOO-PHORIA EUPHORIA The frozen aisle is in the middle of a resurgence as consumers seek more convenient and healthy ways to get meet their cravings. As a result, New Zealand has seen a recent wave of speciality ice creams hit the freezer section of the supermarket. One trend that has taken the global ice cream market by storm are low-calorie ice creams. Ben & Jerry’s has met this growing consumer demand for more healthier alternatives with the release of its Moo-Phoria range onto New Zealand shelves.
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Moo-Phoria has 45 percent less fat than standard ice cream and has fewer calories, fat and sugar than regular Ben & Jerry’s ice cream. At 150 to160 calories per serving, these flavours are the lightest way to enjoy all the euphoria of Ben & Jerry’s. The inaugural Moo-Phoria line-up includes three brand new flavours ready for scooping. The range consists of; Chocolate Cookie Affair: Chocolate and vanilla light ice cream swirled with chocolate chip cookies with 150 calories per 115ml; Caramel Cookie
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Fix: Light vanilla ice cream with shortbread cookies and a salted caramel swirl with 155 calories per 115ml; and P.B. Dough: Chocolate light ice cream with gobs of chocolate chip peanut butter cookie dough with 160 calories per 115ml. Ben & Jerry’s assistant brand manager ANZ, Alice Johnson, said the arrival of the Moo-Phoria range to New Zealand continues Ben & Jerry’s mission to offer its iconic chunks and swirls to all its ice cream loving fans. “Ben & Jerry’s tries to offer a little
bit of something for everyone, so we’re excited to have an incredible new option for fans who are after a lighter alternative to traditional Ben & Jerry’s.” Ben & Jerry’s has had a busy year so far.. January saw the brand release an on-the-go option – Pint Slices which are individually wrapped and come covered in tasty milk chocolate. For more information about Ben & Jerry’s visit www.benjerry.co.nz or follow them on Facebook: facebook.com/benandjerrysnz. n
healthroundtable
Do you believe the New Zealand government should implement mandatory sunscreen standards?
The Ministry of Health funds Consumer NZ to monitor and test sunscreens so the public are aware of issues around sunscreen effectiveness. Longer term, a decision is yet to be made about the inclusion of sunscreen in the proposed Therapeutic Products Bill. This bill, which will create a new modernised regulatory regime for therapeutic products, was released for public consultation until April this year. Sunscreens could be included under regulations covered by the new bill. Sunscreens are currently covered by a voluntary standard - the joint Australian and New Zealand standard AS/NZS 2604:2012.
Chris James, Medsafe
A mandatory standard for sunscreens would be a good idea if overseen by the Environmental Protection Agency. It oversees the Cosmetics Standard. It would a regulatory disaster for either Medsafe or the Ministry of Health to regulate sunscreens. Their role is to regulate medicines and so they tend to view all regulation through that lens. The last time they regulated grocery products like toothpaste, mouthwashes and anti-dandruff shampoos their overregulation was so incredibly expensive it meant that many New Zealand consumers did not get access to many new grocery variants available overseas because it was simply too costly to launch in New Zealand. This changed once these products were shifted from the oversight of Medsafe. We need to remember we are a marketplace smaller than Sydney. The EPA is best suited to oversee this and it would make sense to do this through the Cosmetics Standard.
We absolutely believe the New Zeland government should implement mandatory sunscreen standards so patients and consumers can trust the quality of products they are routinely applying to their skin to reduce skin cancer and photoaging risks from the sun.
Dr Louise Reiche, New Zealand Dermatology Society
The Cancer Society believes the New Zealand government should implement mandatory sunscreen standards. New Zealand has the highest rate of skin cancer in the world and sunscreen is an important component of a sun protection regime. Currently, sunscreens are classified as a cosmetic and unregulated in New Zealand, whereas in Australia they are considered a therapeutic product and are therefore regulated. This means all sunscreen sold in Australia is required to meet the Australian and New Zealand Sunscreen Standard (AS/NZS 2604:2012) (The Standard). In New Zealand meeting the standard is voluntary which means that anyone can produce a sunscreen without having to test and prove that it meets the protection claims the label states. By having mandatory standards for sunscreen as part of a proper regulatory regime the New Zealand public will be better assured that the sunscreen they buy will provide the protection claimed from our intense ultra violet radiation.
Katherine Rich NZ Food & Grocery Council
Shayne Nahu, Cancer Society of New Zealand
IN T R O D U C IN G! NO SUGAR ADDED Cofectionery Range
For grocery enquires please contact your local Alliance Marketing representative on ph 09 2639466 or for any wholesale enquires please contact Chris on 021 678 854 or email chris@tcmarketing.co.nz
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B BEN WHITLEY SWISSE
Growing up on Auckland’s North Shore, Ben Whitley dreamed of being a professional rugby player. “I’m a big sports fan.” After high school, Whitley went on to complete a Commerce degree at Massey University in Albany before venturing over to the UK to play rugby. “It was a great experience and one of the best ways to travel and new people.”
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en Whitley is proud to have been working with Swisse for the past six years. Starting as a territory manager, Whitley has passed through the ranks to become general manager of company in what he describes as “quite the journey”. Previously working in the publishing industry, Whitley had a desire to pursue a career in the health and wellness sector and immediately recognised Swisse. “Having already taken the products and being a brand believer when I saw the available position, I decided to put my feet in and go for it.” The company culture at Swisse was also a big drawcard for Whitley. “It’s really unique as it is like a small family. It’s the first organisation I have worked for that has a business plan every year as well as a culture plan.” The company offers employees opportunities for meditation and yoga, in addition to gym memberships in order to create a company culture which people want to be a part of. “We have a saying in the business which is People, Principles and Passion,” Whitley explained. If you get those three “P’s” right then, the profits will follow.” Moving from publishing to the FMCG industry was a change for Whitley which saw him dive head first into the deep end and start swimming. “It was fascinating. I was thrown into the deep end and had to learn on the spot. It has turned out to be something that I have really valued.” Whitley now manages a team of eight territory managers who are dotted around the country. “Having your own people talk about your brand is something that we believe in and is important to Swisse. Employees go the extra mile when they are representing the brand they are selling.” As a way of staying connected with what’s happening, he likes to get out of the office when he can. “I find that I really come alive when I’m in stores, and I like to stay connected to what’s happening. We have deep relationships with our customers, so I like to get out and see them.” Swisse has a marketing-led model in every country and region. “We like to partner with the best of the best in terms of top athletes, entertainers and teams.” This model of partnering with influencers has worked well for the brand and has seen the company grow
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from strength to strength in New Zealand. Last year this model saw Swisse partner with All Black captain Kieran Read as New Zealand’s local brand ambassador. “This partnership was the perfect alignment. He’s an amazing guy to work with, and he lives and breathes our values.” Whitley first began working with Swisse when brand awareness was still low in New Zealand. The brand was prominent in Australia but had yet to penetrate the New Zealand market fully. “When I first started with the company, our brand awareness was probably below 10 percent, but six years on, we have grown over 60 percent.” He credits the company’s aggressive marketing campaigns for its rapid growth in New Zealand. The company’s skincare range was recently picked up by Foodstuffs and Progressive. This range has seen rapid growth and is now listed as one of New Zealand’s Top 15 Natural Skincare Brands. Research and development are a driving force in the Health and Wellness category, and Swisse makes a point to always be up-to-date on the latest trends. “Innovation is so important in this category, and we see a large portion of our growth coming from new trends that we
try to capture using new ingredients or technologies.” Last year saw gut health become a hot topic as did pregnancy and infant nutrition in which Swisse has recently become invested. Whitley believes that Swisse is only set to continue its rapid expansion with consumers continuing to be more conscious of leading a healthy lifestyle. Premiumisation of existing products is another focus Swisse will be turning its attention to in 2019, optimising some of the company’s popular products such as its multivitamins and fish oils tablets. “Innovations are coming with some of our well-known offerings. Looking at how we can innovate to make taking vitamins more palatable for consumers.” As for the next five years, Whitley has a goal of guiding Swisse into the number one spot for health supplements in New Zealand. “We are hot on the heels of other major players and want to have that five-year ambition to be number one.” When he’s not in the office, the health enthusiast is most likely spending time with his wife and two kids. “I absolutely love being a father. It’s one of the hardest things I’ve ever had to do but so rewarding at the same time.” n
Unpackaging the problem The effect that plastic waste has on the environment is a modern-day problem without a clear solution. In recent years, New Zealand has undertaken various schemes to reduce, reuse and recycle plastic.
New Zealand’s problem, at this stage, is that there are no adequate facilities to accommodate for an increase in recycling. On top of this, if we are to make the business of recycling profitable, there needs to be more of an interest from overseas. “There is a cyclically low demand for mixed recycled plastics,” according to a spokesperson from Packaging New Zealand. There is also the question of quantity—how much consumers want, and how much is necessary from suppliers. It is easy for consumers to post anti-plastic packaging messages on social media, but the problem lies at the source—it’s not as simple as asking supermarkets and retailers to remove packaging, it has to be processed somewhere. “The solution is a doublewhammy of innovative packaging and better disposal for the packaging that exists. At the moment, we haven’t got a plant in New Zealand that can deal with the plastics,” said Mike Chapman, chief executive of Horticulture New Zealand. There are fundamental issues in the current system that inhibit
sustainable recycling of plastics. Each sector of the industry has its flaws, but like Ken Snowman, CEO of Plastics New Zealand said, “To create such an extensive and systemic change, we must all work together for a better future.”
What’s the best way to approach this? “Just as there’s no point changing from plastic shopping bags to canvas ones if you’re buying far too many canvas bags, so too is it not helpful to use less plastic wrap if the subsequent product damage uses more resources in the long run,” according to Universal Packaging New Zealand. There is a discrepancy between the suppliers and consumers in this question. On top of this, there are government standards and influence. The end goal is a circular plastics economy. A circular plastics economy is where all plastic packaging is collected, reused, or recycled into similar new products. At the moment, suppliers are being asked to keep products fresh, but reduce the amount of packaging
involved. Between the government and the supply industry, there is a desire for there to be stricter regulations around plastic packaging and recycling standards. The supermarket industry is becoming increasingly focussed on creating loyal, returning customers. Now, the power in the hands of the consumer. Although there are calls to abandon packaging at supermarkets in the act of rebellion, it’s not a sustainable solution. Suppliers are aware of the need to develop ways in which they can operate more sustainably, but there is also pressure on them to provide quality produce. Furthermore, “Attempts made by the government sector to artificially increase the rate and/or type of material recycled can work for a while, but they do not have a good history of success,” according to Packaging New Zealand. The French Government, for instance, are trialling a new initiative in 2019 where they intend to increase the price of items packaged in nonrecyclable packaging by 10 percent and decrease the cost of goods wrapped in a recyclable matter by 10 percent.
France hopes to be using nothing but recyclable plastic by 2025. This movement towards recyclable products was met with support, but the hope is that manufacturers will play along so that consumers aren’t directly sanctioned. Up until Christmas, New Zealand consumers had an outlet for soft plastics in the form of a nationwide recycling programme. However, the scheme is currently suspended after its main buyer in Australia stopped receiving the plastic. It’s set to resume in April, in a reduced number of regions. The recycling scheme chairman Malcolm Everts said that the service was suspended to give the company time to work with its processing partners to build capacity, as well as find new and innovative processing solutions. The scheme was a success amongst consumers, and the plastics put into the recycling bins were being reprocessed into new long-life products. Before the service, soft plastics went straight to landfill. “The journey to achieving [a circular plastics economy] is laudable and the ideal. It requires government leadership both central and local, sector collaboration, new infrastructure, and considerable technical innovation,” said Ken Snowman, CEO of Plastics New Zealand. The answer to the plastics question seems to lie in a multi-faceted approach. Everyone must be willing to lend a hand in reducing, reusing, and recycling, on top of suppliers reducing the amount of packaging in their products. Government influence must encourage and facilitate the switch to a “greener” industry, and in general, there needs to be a collaborative effort to increase the infrastructure and attitudes towards recycling in New Zealand. n February 2019
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reducereuserecycle Creating a sustainable future approach is required to address plastic waste in New Zealand,” said Malcolm Everts, marketing manager for Cottonsoft Ltd. We can no longer rely on off-shore recycling so local efforts, aligning retailer, supplier and government ambitions are key to a sustainable solution. Future moves to remove plastics from the chain altogether will rely on a safe, serviceable alternative being available.” Everts believes that the first issue is recognising that there is a problem; then ensuring solutions are genuinely sustainable to help shoppers, consumers and suppliers make better environmental choices. New Zealand recently trialled a soft plastics recycling scheme where bins were placed in retail stores and supermarkets, for customers to leave their plastic waste in. The initiative was successful, and about 400 tonnes, equivalent to 100 million plastic bags, were recycled, which would otherwise have all gone to landfill. However, the cessation of off-shore processing, limited local processing capacity and limited demand from both local and international businesses to resell or reuse the materials has
Global trends indicate that people are becoming increasingly concerned with sustainability and “going green.” In New Zealand, recent years have played host to such schemes as the singleuse plastic bag ban and the New Zealand plastic packaging declaration. The plastic bag ban was met with great support from consumers across the country. One of the issues that New Zealand faces, however, is the lack of recycling facilities and general wasterelated infrastructure to keep up the plastic processing demand. “An integrated industry-wide
meant collections have been suspended, “This was an industry-funded scheme, accredited by the government, and supported with advice from the Ministry for Environment, though it was the steering committee and governing team (the Packaging Forum) that chose to suspend collections temporarily. “Not making that decision could have undermined historic success, and future potential, for local soft plastic recycling.” Cottonsoft brands are encouraged to be supportive, competitive, and sustainable. Sustainable sourcing of raw material is key to its business, with independent certification such as ECNZ (Environmental Choice) and PEFC (Programme for the Endorsement of Forest Certification) becoming an increasingly important consideration for retailers and shoppers. “Three years ago there was virtually no local processing capacity for postconsumer soft plastics and overseas processing was our only option. Today we have two local processors recycling the soft plastic into items such as fibre optic cable covers and fence posts.” Retailers are actively encouraging alternatives such as electronic labels and re-useable bags—collectively reducing the volume of soft plastic waste. Recycling alone will not solve the local challenge, though collectively consumers, retailers and manufacturers are making a positive impact on reducing waste and supporting better environmental outcomes for New Zealand. n For more information contact Malcolm Everts at malcolm@cottonsoft.co.nz
Reusable products
Shay Lawrence, the founder of CaliWoods, spent six years travelling to some of the most isolated pockets of the ocean, often questioning whether anyone had stood on the same tropical sand before her. followed her everywhere. Bottle caps, pieces of bags, plastic straws, and broken jandals. Coming home, motivated Lawrence to do something about it. After careful product development, CaliWoods was the first to bring reusable straws to the New Zealand retail market. “CaliWoods has a strong social
Despite the turquoise water and palm trees, it was hard to ignore the confronting reality that plastic pollution and human consumption
enterprise framework, with the quality of the product and operations firmly backing up our campaign for a more sustainable future,” said Lawrence. The products, packaging and shipping are entirely plastic-free. Cali Woods make products to last and its brand engagement on social platforms is high with a focus on living with less waste, inspiring customers to make a change. CaliWoods are a living wage employer and support topical conservation projects and community events throughout New Zealand. The benefits of association with a genuine eco brand cannot be ignored in a time when conscious consumerism is on the rise. n For further enquiries contact shay@caliwoods.co.nz or for sales enquiries mike@integritysalesgroup.co.nz.
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COMPOSTABLE PACKAGING One answer to the ongoing sustainability debate is compostable packaging. Since its launch in 2010, Convex has evolved to develop a growing number of innovative high barrier sustainable packaging solutions. Its journey first began in 1995 when the team purchased one of the first cornstarch-based packaging resins. From here Convex worked to construct a resin that was not only sustainable but functional and affordable. “We also started working with other resins made from compostable materials, as they became available and we continue to do so today,” said managing director, Owen Embling. Compostable packaging is more popular than ever, and Convex are now the packaging provider for a number of dry food products, from hot drinks to pet food. They offer an array of sustainable packaging solutions from High-Performance Sustainable Packaging, High Barrier Compostable Packaging and Compostable Greensack Bags and Bin Liners. The team has worked with many popular brands such as Cookie Time and OSM to develop sustainable packaging solutions. The company is also committed to Lean Manufacturing and is a HACCP-certified, quality assured approved supplier of food grade packaging. “Our fully-equipped, privatelyowned plant features the latest extrusion, conversion, pre-press, lamination and printing technology, along with market-leading warehousing and a research laboratory.” Convex is committed to reducing its impact on the environment and helping others to do the same. From more information contact Owen Embling at owen.e@convex.co.nz or visit www.econicpack.com. n
Managing waste efficiently Each year, New Zealanders send 122,547 tonnes of food waste to landfill – mixing food waste with other waste streams creates cross-contamination. Not only does this cost supermarkets money but it’s also harmful to the environment. This means that there is a growing need for stores to continually increase recycling efforts by separating and sorting waste at the source. Five Ways Supermarkets Can Reduce Landfill Waste, Improve Efficiency and Minimise Costs: Assign a Waste Champion – The first step is to educate and assign a staff member or two to be in charge of the stores recycling efforts. They can work along with Easi consultants to make sure they have all the information needed to ensure that the correct bin systems are in the right positions and are being used correctly. Identify Key Waste Streams – Start by carrying out a simple waste audit accessing waste streams by department. Waste streams produced in the butchery, deli, produce, warehouse, and lunch rooms will all
be different. This gives staff the ability to identify all key waste streams, how to separate them and how they can be recycled correctly. Use Colour Coded Bags – This will help the staff to be more efficient. If bins and bags are colour-coded by different waste streams, it makes it easier to separate; mixed recycling, food waste, glass, paper and clear plastics correctly. These waste streams will also find their way to the correct bins and skips at the back-of-house for collection by waste specific suppliers. Educate, Educate, Educate – Once bins are set up and waste streams are identified, it’s time to educate staff on what waste to separate in each department and how to empty bins correctly once they are full. “Running a
brief workshop on the importance of recycling and how to do so correctly always helps and is often welcomed, staff feel proud to work for a company that cares. Suppliers working in your best interest will give you on-going tips and advice to ensure you are minimising your landfill waste and creating a cleaner more efficient working environment,” explained Jon Earnshaw, owner, Easi Recycling. Set a Waste Minimisation Goal – Discuss environmental ambitions with the team and an Easi consultant. For example, make it a goal to reduce landfill bin empties or try aiming to hit a 90 percent waste diversion rate. Create small incentives for each department on who can produce the least general waste. It is good for the team to have something to work towards but be sure to keep it achievable and realistic. Remember to monitor the progress with friendly reminders to staff along the way.
A Sustainable Solution Once the basics are in place the waste and recycling program can be easily monitored, the goal is to reduce landfill waste. Benefits soon become apparent, the workplace is cleaner, more efficient and waste collection costs will start trending down, not up. For more information contact Easi Recycling at info@easirecycling.co.nz, phone 0800 342 3177 or visit www.easirecycling.co.nz. n
Smarter and Greener Waste Handling
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reducereuserecycle Wrapping up compostables
Compostic was born out of a passion for business and the environment. A trip to Asia was what initially sparked the 'A-ha' moment for founder Jon Reed. “I’ve always had a passion for nature, having travelled a lot when I was younger. ” “As I grew up, I started to venture a little further outside my comfort zone to places like South East Asia where I started to see the extent to which plastic was damaging our environment.” The business-minded Reed had always dreamed of owning his own company and so starting a business that sort to eradicate plastic seemed like a step in the right direction. “I’ve also always had a passion for business and always wanted to run something for myself, so it seemed natural to put two and two together.” Compostic is committed
to eradicating plastic waste in New Zealand and beyond by replacing everyday household items with something more sustainable. The business has recently launched its first consumer-based product – a compostable food wrap. “We’re able to provide consumers with something they are used to using on a daily basis but without the guilt factor of using a single-use plastic product,” explained Reed. Creating a plastic wrap wasn’t easy for the team at Compostic. Getting the perfect blend meant that the
team needed a lot of patience. Unlike other plastic wraps, Compostic wrap is capable of breaking down in an at-home compost. “At first I couldn’t quite believe that something that feels and functions like that could break down in my back garden, and despite the certifications had to test it myself before I trusted it. It’s really quite amazing.” Reed believes that compostable packaging is the future but thinks that first New Zealand needs to restructure its waste management systems. Circular economies are currently a
Plastic-free food wraps
Munch Cupboard has sold over 500,000 Beeswax Food Wraps throughout New Zealand already—despite having only entered the supermarket industry this year. “Five years ago, no one knew what a Beeswax Food Wrap was and how to use it,” said Anna Bordignon, founder of Munch Cupboard. “The market is now educated, and 99 percent of consumers now know what a Beeswax Food Wrap is.” A Beeswax Food Wrap is a natural, reusable alternative to plastic wrap. The wrap can be used for up to 12 months after it is first purchased. Once the wrap comes to its end of use, it can either be burned in the fireplace or put in the compost—a full product life cycle with no waste. Munch Cupboard is about empowering mums to change the world and making a difference with everyday products. Munch Cupboard started with a simple, yet awardwinning Baby Cookbook. Following on from that the team created a blog and developed a full product range of reusable baby products from lunchboxes to eco-straws. Munch Cupboard currently employs over 30 women throughout New Zealand to make their Beeswax
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Food Wraps. The women that are hired by Munch Cupboard have previously found it difficult to obtain work—the company takes work to them through the Traditional Outwork Model. “The demand for this type of work is so enormous which means our capacity to supply more Beeswax Food Wraps is infinite,” said Bordignon. “We have a vision to support over 200 women in need by taking work to them.” As Munch Cupboard launches into the food and grocery industry, Bordignon hopes that new opportunities will bring more sales, more suppliers, more products and more support to those in need. “We are making it easier for your buyers to be more sustainable.” For more information phone 0800 686 222 or email sales.nz@munchcupboard.com n
hot topic in the industry, and Reed believes that it is an achievable goal that the public is behind. “What has been encouraging has been the huge amount of public support that we have received so far which goes to show it is something that people are concerned about and would like to see a change sooner rather than later.” The continued introduction of more and more compostable products is encouraging consumers to compost at home. But Reed reveals that more education of what is and isn’t compostable is needed before composting becomes mainstream. “It’s something that we’ve seen in the past with the introduction of recycling. These things take time, they’re not something that people will grasp overnight. “As compostables become more commonplace, we believe that so will the consumers understanding of them and we hope to be a big part of that education.” Unlike compostable produce, Compostic products have the ability to talk to the consumer through their branding to remind them to compost where an apple or orange can’t. As the sustainability trend continues on its trajectory, Compostic plans to release even more alternatives into the market. “We have a number of projects in the pipeline that we’re really excited about – they’re not too far away now either.” For more information on Compostic visit www.compostic.co.nz or email Jon at jon@compostic.co.nz. n
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COGNITIVE DISSONANCE A term which has steadily crept into everyday use. Essentially what it means is that it is more preferable to buy into “a reassuring lie” than address “an inconvenient truth”. So it isn’t hard then, to understand how this term is being applied in the packaging waste and recycling space.
Sharon Humphreys Executive Director, Packaging Council of New Zealand
When China effectively closed its doors to recyclates at the beginning of 2018, it highlighted just how dependant the developed world had become on an ‘out of sight, out of mind’ mentality with regards to recycling. Decades of investment in recovery systems has driven the myth that “we are doing the right thing” and collecting more and more material
is the right thing to do. In our zealousness we failed to instil strict quality guidelines around these systems. So as recycling rates climbed so too did the contamination rates. China did not shut its doors to recyclates – it shut its doors to the rubbish we were sending masquerading as recyclates. Despite exhaustive, and exhausting, coverage by mainstream media of the ‘recycling crisis’ scant attention was paid to how we got to this point. This is where cognitive dissonance comes in. Basically we prefer to blame the consumer goods industry for their products and packaging, blame the recyclers for lack of capacity and capability, even blame the government for not regulating in this space rather than address the actions and behaviours which led to the system collapse. The inconvenient fact is that no simple fix exists and government, industry and individuals will all need to engage if solutions are to be sustainable and enduring. The policy framework needs to recognise that this is a national issue, not a local issue and requires a platform of shared risk across government and industry to achieve the most appropriate waste and recycling framework for New Zealand
Inc. which takes account of all the technologies available, not simply those which fit within ideological boundaries. The consumer goods industry needs to escalate the work it is already leading, connecting to the capability of end-of-life resources and options, so they can innovate and optimise materials with solutions and eliminate those without. The consumer needs to take responsibility for the difference between ‘wants’ and ‘needs’ to address the very first tier of the waste hierarchy: “reduce”. On-pack information needs to clearly direct consumers which end-of-life system to use for products and packaging (based on actual availability of systems not the technical characteristics of the material) and individuals need to be diligent in applying that information to drive uncontaminated material recovery. Local government needs re-visit collection systems, particularly those operating co-mingled collections, so there is harmony between the requirement for an effective and efficient recovery system and achieving quality recovered material to feed into new and existing end-markets. No-one can opt out of this if we are to be successful. We know where we are and we know where we want to be – all we have to do is connect the dots. n
Go plastic free with
REUSABLE STRAWS Reusable beeswax wraps.
For further enquiries please contact Shay@caliwoods.co.nz and for Supermarket sales enquiries mike@integritysalesgroup.co.nz
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munchcupboard.com sales.nz@munchcupboard.com I 0800 686 222 NZ
reducereuserecycle
ROUNDTABLE
What can be done in the grocery industry to achieve a sustainable circular plastics economy?
Circular economies are ‘demand-driven’ so a circular economy loop only exists when packaging drawn from our own local waste stream is continuously procured and re-used over and over. Grocers who wish to see New Zealand recycled packaging on their shelves can do so by simply procuring it themselves for in-house products and insisting firmly that their brandowner suppliers are doing the same. This creates demand locally, and the higher that demand the more waste plastic volume is pulled from the New Zealand waste stream and so the circular economy snowballs. Our recent experience at Flight shows that New Zealand recycled PET packaging can be produced and supplied at virgin-equivalent prices making circular economy recycled PET packaging cost-neutral a win-win for the trade and the consumer. Even more so, it’s a huge win for the environment, the thousands of tonnes of waste plastic recycled at Flight is simultaneously eliminating its equivalent volume from new plastic imports. This massive waste volume saved, plus equivalent tonnes of new plastic no longer imported is a two-for-one result demonstrating clearly that the circular economy principle is an absolutely essential ingredient as we collectively tackle New Zealand’s waste plastic issues.
Keith Smith, Flight Plastics Ltd.
Shoppers are becoming more aware of the plastic waste problem, they are becoming ‘conscious consumers’ and are looking for products that use less of it. In order to achieve a circular economy, we need to continue educating communities for behaviour change and make it easy for shoppers. We also need support from government and councils as well as companies who produce the products to take some of the responsibility and contribute funding towards waste management and recycling schemes, such as the organic waste collection that can take compostable packaging. Industry standards with clear labelling showing relevant certifications is important to help reduce contamination. I hope to see more products packaged in glass, paper and cardboard or even better, reusable packaging to support a circular economy in the very near future.
Clancy Simmonds, ECO PACK
We agree that changes need to be made to address the over-reliance that Kiwis, and people throughout the world, have on the convenience of plastic. Reducing and removing plastic and packaging from our stores is only one part of the solution. Ultimately, plastic provides complete packaging solutions that few, if any, alternatives can. We’ve always been open about the need to find and introduce more alternatives wherever we can. However, we don’t just want to provide our customers with a slightly better alternative. We want to provide them with viable, long-term solutions. This work will take some time to get right, because we have to make sure any alternatives meet a range of requirements including things like ensuring food safety, maintaining freshness, and an ability to withstand transportation both into and out of our stores. We also have to make sure there are end of life
Supermarkets have a pivotal role in creating a more sustainable plastics economy for New Zealand, but it’s important to note that they cannot do it alone. We need a combined effort from consumers, suppliers, and retailers to see the changes we hope for. In an ideal world, all grocery packaging would be certified compostable, recyclable or reusable. But more importantly: made from renewable resources. Certified compostable packaging made from plants would be collected at kerbside along with household food waste and composted nearby. The result: no organic waste to landfill, abundant compost for healthier soil, and less plastic waste. A good step is for bakery and deli departments to use certified compostable packaging and educate customers on the environmental benefits of these plastic alternatives. Like the soft plastic collection bins, a collection point outside the supermarket to take back certified commercially compostable packaging would allow consumers to play an active role in diverting organic waste from landfill. Supermarkets could leverage relationships with suppliers and encourage the use of plastic alternatives in their supply chain. Reward schemes for those making improvements and positive change could promote the elimination of traditional plastic and support for compostable, plant-based options. Nothing will ever be perfect, but it can always be better, and we’ve got to start somewhere.
James Calver, Ecoware
solutions available in New Zealand for anything we introduce. Finding alternative packaging solutions is a challenge that we, and our suppliers, share. Good changes are taking place and we are talking regularly with our suppliers about where and how adjustments to packaging can be made. We are also committed to advancing a circular economy wherever we can. We know our customers are keen to see changes in our produce section and this is something we’re continuing to work on. Over the last year alone, we removed more than 100 tonnes of plastic from this section of our stores. It’s important to note that customer demand plays a key role when deciding what we stock on our shelves. Most of our produce is available in both loose and packaged form, giving customers the ability to choose items that best meet their needs.
Kiri Hannifin, Countdown
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shoppertracker MISSION AND OCCASION SHOPPING
Every grocery shopping trip is pretty much the same, right? You park the car, walk into the store, grab a trolley or a basket and set off to get the things you want. A certain amount of time later you pay for your purchases, pick up your bags and load them into the car. Job done. Lather, rinse, repeat. Always repeat. creams. Or maybe, it's that mercy dash to get some carpet cleaner and man, you gotta hurry before that stain sets.
Andrew Arnold
Senior Insights Director at Shopper Intelligence New Zealand
The Rise Of Mission & Occasion Based Shopping
Except this isn’t always the case. Sometimes you’re picking up a few things for dinner on the way home. Other times it's your lunch break and you’re picking up something quick and easy. Maybe it’s a hot day and you’ve stopped off with the kids to get ice
More than ever before, the Kiwi shopper is heading to the supermarket for a reason other than the main grocery shop. Make no mistake, the main shop is still the biggest single reason why people go to the store but over time other reasons are becoming far more important.
At Shopper Intelligence we survey the Kiwi shopper to better understand the reasons for going to the supermarket and how that varies across categories, segments, brands and retailers. Over the past couple of years it has become apparent just how quickly the Kiwi shopper is becoming a mission based shopper. In 2018, six percent more shopping trips were driven by a specific mission or occasion compared with the prior year. We expect this trend to continue in 2019 and potentially even accelerate.
Different Missions Have Different Needs
ADD THE
TASTE OF TEXAS TO YOUR RANGE.
We follow the authentic tradition of slow smoking and cooking beef brisket, pork belly, cheese and butter. There’s no artificial flavourings or additives and is low in salt. We have sliced and packaged it in convenient, easy to use take home packs to ensure that the meat is as good, if not better, than when it comes out of the smoker.
TEXASBBQFOODS.COM
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But why does this matter? Put simply, a shopper on one type of mission has different needs than a shopper there for a different reason. Let’s use an example to illustrate. Think of the disposable nappies shopper. This person is usually price conscious, highly engaged with the category and is quite likely to be buying in bulk, and there is a tendency to gravitate towards bigger value packs. This leads to the situation where retailers often lead with the large bulk packs on promotion which act as traffic drivers, pulling in shoppers to stock up. This shopper has plenty of options. This is the kind of category where shoppers know what they need, plan to buy and promotions can make them choose where they go to shop. Now consider the disposable nappies shopper who is racing to the store because, shock horror, they’ve run out. A whole different set of circumstances is at play here. Instead of a promotion driving them in, store proximity has probably been the determining factor. When you’re in this situation, price isn’t playing as strong a role. Instead, availability is crucial – this shopper will buy the first pack size they see because their mission is different. This isn’t a stock up mission where they have the luxury of shopping around, this is an emergency. Same category, completely different occasions with different rules of engagement.
Store Setups Need To Reflect Shopper Missions Consider also food categories and how missions differ. The simple, humble pack of bread rolls means different things depending on the mission you’re on at the time. To shoppers on a main shop, bread rolls are what they pick up when they reach the instore bakery or bread aisle. It could be habitual, it could be impulsive but either way they are probably picking it up from the main location. But for the shopper who is on their way home from work with only the occasion or mission on their mind – dinner – then locating the bread rolls beside the hot chicken is a solution to a need, the need to find something for dinner. This shopper may well end up walking the whole store to make that logical connection between a hot chicken and bread rolls but creating a solution for a time poor shopper with a mission in mind is more likely to result in a satisfied one. Price often gets trumped by solutions for mission based shoppers - providing a solution like this might make them spend more but a positive experience has been the result, leaving open the possibility of repeat business. Setting up the supermarket with solutions to various missions is a growing trend internationally and is the way of the future here as well. Talk to us to find out more out how your shoppers shop, which occasions are key and how you can set them up for success. Shopper Intelligence interviews over 100,000 shoppers in Australia and over 40,000 shoppers in New Zealand across the Supermarket, P&C and Traditional Liquor channels in order to drive strategic shopperled commercial decisions at retailer, category, segment and brand levels. n If you want to understand your shoppers better, contact Andrew Arnold, senior insights director at Shopper Intelligence New Zealand at andrew.arnold@ shopperintelligence.co.nz
CAMPAIGN FINANCED WITH AND FROM THE EUROPEAN UNION
THE EUROPEAN UNION SUPPORTS CAMPAIGNS THAT PROMOTE RESPECT February 2019 FOR THE ENVIRONMENT.
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Longer Lasting Nivea’s range of 48-hour moisturising body lotions have been rejuvenated to provide longer-lasting moisturisation. The lotion is packed with Vitamin E and sea minerals, making it perfect for those with normal or dry skin. These products will help lock in moisture and smooth away dullness. Bid farewell to dry skin with Nivea.
Super Cereal
New Zealand Exclusive
Cathedral Cove Naturals has launched a new Super Cereal — Maple, Walnut and Apple Toasted Granola. This tasty gluten-free blend of buckwheat flakes, nuts and seeds is a perfect addition to its already popular coconut yoghurt range and is a great breakfast for nourishing the gut. The cereal is also packaged in a glass jar to reduce the use of plastic.
A New Zealand exclusive, Rekorderlig Arctic Berries is a union of two of the most flavoursome Arctic Berries – the blueberry and the lingonberry. The beverage is then blended with apple cider to delight the taste buds of consumers. The new flavour is available in both the traditional 500ml format and as well as the new 4x330ml four pack.
Settle The Stomach Two Legends Unite Iconic New Zealand brand Arnott’s has united with Vegemite to create a tasty new snack. Shapes Vegemite and Cheese is the perfect pairing of snack and spread, combining the famous New Zealand cracker with the distinct flavour of Vegemite.
Red Seal has released a limited edition Activated Charcoal supplement. The aid is a must-have for travellers who need help to rid the body of toxins and settle the stomach. The supplement works to bound together toxins and chemicals in the gut, moving them safely through the body while preventing absorption. The Red Seal charcoal capsules are made of medical grade carbonised coconut shells.
Pint-Sized Slices Ben & Jerry’s has added a new pint-sized addition to its premium ice cream range. Introducing Pint Slices, a slice of Ben & Jerry’s famous Chocolate Chip Cookie Dough ice cream covered in a dark chocolate coating. The slices are made with Fairtrade certified, non-GMO sourced ingredients and are great for snacking while on the go.
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Beverage Bouquet From one of Hamilton’s top craft breweries comes Good George’s Rosé Cider. This combination of two of the most refreshing drinks—cider and rosé— will be a hit with consumers. The drink features a lovely bouquet of strawberry, with hints of apple, to please the nose before the taste even hits the palate. It comes individually cased in a 330ml can or as a six-pack of 330ml cans.
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Fairtrade Indulgence
Alter Eco presents its latest indulgence, Deepest Dark Super Blackout, a 90 percent cocoa chocolate bar for even the most discerning palate. Deepest Dark Super Blackout is made up of 90 percent fruitymalty Ecuadorian dark chocolate and finished with a touch of Madagascar vanilla. The quality of the cacao means that this chocolate treat is packed with antioxidants, iron, and magnesium. Per serving, the chocolate has only 2g of sugar; it is also organic and nonGMO.
Twisted Tropics Dive into a world where not everything is as it seems. The latest addition to the V Energy product range is a pineapple paradise with a twist of delicious deception. V Twisted Tropics Pineapple Crush flavour is available in 250mL and 500mL cans and 350ml glass for a limited time only.
Scrumpy Cans Old Mout Scrumpy is now available in a six-pack. Both its Scrumpy and Berry flavour are now available in the new can format creating ease for the customer. Old Mout Scrumpy is a traditional take on Scrumpy with medium sweetness balanced by the strong flavour of apple skins. The Old Mout Scrumpy and Berry offers a blend of sumptuous summer berries and crisp Nelson apples. The cider has hints of succulent boysenberry wine, strawberries, raspberries and cranberries.
Extra Low-Carb In light of drinking trends heading increasingly towards lower-carb options, DB Export announced the launch of DB Export Gold Extra Low Carb beer this month. DB’s latest release is said to have 80 percent fewer carbohydrates due to its extended brewing process. DB Export Extra Low Carb will be available in supermarkets and liquor retailers around the country in 12x330ml packs.
Protein Coffee Keeping Skin Clear
Introducing Clear Complexion from Essano, this New Zealand made product range includes a Purifying Gel Cleanser, an Oil Control Moisturiser, Detoxifying Serum, Rapid Action Blemish Gel and Mist Toner. Clear Complexion’s leading active ingredients are BioDTox and Probiotics. Bio-D-Tox controls sebum, improves skin tone and protects against pollution stressors and soothes skin, while probiotics help to balance sensitive, reactive and inflamed skin.
Protein Enriched Coffee Solution in conjunction with Auckland University has developed a protein enriched coffee. The coffee grains are similar to traditional styles with the added benefit of having 35 percent added protein. PECS coffee is ideal for anyone looking to increase their protein intake without interrupting their routine. It is excellent for vegetarians looking for alternative sources of protein and fitness enthusiasts who are looking to gain muscle.
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Super Series Hawke’s Bay Brewing has taken its baby duck and made a Super Duck in its new proprietary large 620ml bottle. The company felt that it was time to give customers a chance to buy a super-sized version of one of its most popular brews – Black Duck Superior Dark Ale. With bold flavours of toffee, burnt caramel, coffee and chocolate characteristics this fine dark ale is sure to be a crowd pleaser. The supersized dark ale is brewed with five malts in 18th century London style and left for 40 plus days in its maturation tank to age and deepen in flavour. For more information contact Hawke’s Bay Brewing at sales@hbbc.co.nz, visit www.hbbc.co.nz or phone 0800 696 2837.
Bite-Sized Oats New Harraways Harr-os is the unique crunchy oat bite snack from New Zealand’s oat expert. They are baked not fried, vegan friendly, made with South Island oats and contain no artificial colours or flavours. The range features three flavours – Indian Spice, Mexican Salsa and Thai Sweet Chilli Pumpkin. For more information contact peter@harraways.co.nz or phone 03 488 3073.
The Collective has joined forces with world-renowned chef Peter Gordon to create a delicious new gourmet probiotic yoghurt, with proceeds going to a charity close to his heart, The New Zealand LAM Trust. Its new Feijoa, Vanilla and Ginger yoghurt, brings together aromatic feijoa and vanilla with the punchy deliciousness of ginger. These flavours are paired with The Collective’s thick and creamy yoghurt. The launch comes as part of The Collective’s ‘Chefs for Good’ series, an initiative that raises money for New Zealand charities through collaborating with iconic Kiwi chefs.
Golden Sauerkraut Be Nourished’s golden turmeric kraut has an array of ingredients including two superfoods. Firstly, Fresh turmeric which is known for its anti-inflammatory and antioxidant properties. Additionally, nigella sativa, or black cumin, is also known as the miracle seed. It is used to cure a wide variety of diseases including easing joint pain, protecting the kidney, and alleviating asthma. Not only is it a great addition to an array of meals, but the ingredients are packed with nutritional benefits.
Anzac Tins
Tinned Tomatillos Tío Pablo has released an 800g can of whole tomatillos. Tomatillos are often used as an essential part of Mexican cooking. They can be utilised in many ways; raw or uncooked tomatillos are regularly featured in Mexican sauces where they offer a fresh, citrus-like flavour, fire roasted, where the charred skins enrich meals with a smoky taste, and dry roasting, which brings out an earthy character. Tomatillos are most commonly found in salsa verde and enchilada sauce.
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Each year the AFM Group release four new collectable tin designs. For every tin sold $1 is directly donated to the NZ RSA. Since 2015 the company has raised over $350,000 for the NZ RSA. Make sure stock is on hand to help AFM help those who have served for the beautiful country Kiwis have today.
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Locally Grown Quinoa With 90 percent of the world’s quinoa grown in South America, The New Zealand Quinoa Co wanted to provide New Zealanders with a locally grown option. Its quinoa is farmed sustainably, is spray-free and grown without irrigation. The quinoa is packaged in a 400g Natural Quinoa Pouch.
Breakfast Bling Premier Tea Blends
Basilur Tea is a premier tea brand exporting the finest Ceylon tea to a worldwide clientele in over 75 countries. Basilur Tea bears the expertise, experience and the knowledge to identify the finest of tea leaves and take it to higher realms by creating the most eclectic blends of tea and use state of the art modern techniques to secure its freshness and quality. Basilur is world renowned for its pure Ceylon tea and the presentation of it in different forms of artfully imagined packaging is designed to suit the needs of many occasions and individuals. Basilur has been providing authentic pure Ceylon tea to the retail industry from supermarkets to boutique stores. Its range includes over 90 blends presented as loose-leaf tea, paper tea bags and silky pyramids. Provide customers with the true experience of Ceylon’s finest tea with a touch of elegance and luxury with Basilur. For more information visit www.basilurtea.co.nz, phone Natalia on 0226278527 or email Tealady.nz@gmail.com.
Chocolate Surprise
With twenty cents from every block sold going to Plunket, Whittaker’s new coconut ice isn’t just a fun surprise for Kiwis but a unique treat for a good cause. Whittaker’s new Coconut Ice Surprise is a delicious chocolate twist with one of two coconut ice colours revealed only when a block is opened. Whittaker’s Coconut Ice Surprise 250g Block comes in two different colours, pink and blue, both of which are exactly the same flavour, consisting of a combination of Whittaker’s creamy White Chocolate mixed with premium desiccated coconut, to create a chocolatey adaption of the beloved sweet treat.
Since 2015, Blue Frog has brought the bling to breakfast. They want consumers to abandon themselves to bold flavours and brave moves. Since its beginnings, Blue Frog has recognised that not everyone needs a grain-free or gluten-free option. By creating a wholesome, plant-based and great tasting range of granola (with no compromise on values) they can make their cereals even more accessible to everyone. With 30 percent more nuts and seeds and up to 30 percent less sugar, these granolas are so good it’s almost sinful. Blue Frog granolas have no refined sugars, no dried fruit and are vegan-friendly. For more information visit www.bluefrogbreakfast.co.nz or contact Scotty at scotty@bluefrogbreakfast.co.nz.
No Added Sugar Candies
TC Marketing in conjunction with Alliance Marketing is pleased to announce the launch of “Whitman’s No Sugar Added” confectionery range. Whitman’s is a company with a great tradition of producing chocolates in the USA for over 175 years. With increasing public awareness for the need to eat healthy, consumers are looking at ways to reduce sugar in their diet. “Whitman’s No Sugar Added” has low sugar and delicious flavours individually wrapped in foil for convenience and freshness. The “No Sugar Added” food claim is because the product contains no sugars added during processing or packing, instead, stevia is used. Stevia’s natural sweet, clean taste has zero calories and zero aftertaste. “Whitman’s No Sugar Added” range is available in four flavours — Assorted Fruit Hard Candies, Milk Chocolate Caramel, Dark Chocolate Mint Patties and Milk Chocolate Pecan Crowns. For grocery enquiries please contact your local Alliance Marketing representative on 09 263 9466 or for any wholesale enquiries please contact Chris on 021 678 854 or email chris@tcmarketing.co.nz.
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storeofthemonth FOUR SQUARE MARTINBOROUGH
Managing director Conor Kershaw is a fourth-generation retailer who manages not only the local Four Square but also the Mitre 10 and P&K General Store in the quaint New Zealand town of Martinborough. The family first got into the retail business back in 1898 and continues to provide locals with everything they need today. “I find it very rewarding running a business that is a part of a tight-knit community. Being able to provide jobs and support to our community is something I really value.”
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ctober 2013 saw him buy the business from his father, David Kershaw, who was an ex-director of Foodstuffs Wellington. “We have been a member of the co-op pretty much since it was formed.” Kershaw notes taking over the family business as one of his greatest achievements to date. “Having the opportunity to take over and maintain a wellestablished family business is one of my greatest achievements. Being able to evolve the business to change with the local community is something of which I am extremely proud.” Maintaining a local feel in-store is something that is important to the Four Square Martinborough team. “Being a fourth-generation grocer, it is important to me that the business retains its character and heritage, and that our customers have that ‘small store’ welcoming experience, while still delivering an extensive offering that caters to our growing local market.” The store has a vast range compared to other traditional Four Square retailers. The store offers a full grocery range from household basics and value products all the way up to gourmet and speciality items. Being a community-focused store Kershaw believes that it is essential that they stock local suppliers. “We love our local suppliers, they are passionate, creative and produce some great products which fly off the shelves.” The store has an impressive range of local and New Zealand made products which includes nearly all of Martinborough’s local vineyards, cheese manufacturers and craft breweries. Operating in Martinborough offers a unique opportunity for Kershaw and his team. The store is located inside a unique heritage building surrounded by a number of popular cafes and eateries. Being situated in a popular wine region means that the team need to not only cater to locals but also to the tourist markets. “We try to keep our food-togo offer simple, fresh and consistent, and sell great products from local businesses.” To keep up with demand Kershaw has plans to add a meal solution offering later on in the year. “We hope this will cater to a growing customer need for quick and easy solutions,” he said.
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A heritage building means that Four Square Martinborough isn’t just your run-of-the-mill grocery store. The store has an array of highlights that help it to stand out from the crowd. At point of entry customers walk into the large fresh aisle with a variety of seasonal produce offerings and a full butchery range with beef sourced from Wairarapa farms as well as gourmet products such as Firstlight Wagyu Beef. The store also features a seafood range with fresh fish on offer all week. “We pride ourselves on listening to our customers and what they want to see in-store whether they are locals or from out of town. We are always happy to trial a new product on behalf of a customer and see if there is a demand for it from other shoppers too,” said Kershaw. The store also provides locals with both a chilled and a frozen department, an impressive selection of local wine and craft beer, as well as hot food and lunch options. “We have had great success in our frozen category with a number of NPD luxury items being launched. Beer and wine are also showing good growth through the wedding events service we offer
with chiller trailer options and competitive rates.” Kershaw sees meal solutions as the most significant opportunity in the grocery industry. With customers lives becoming increasingly busier he believes it is crucial to provide shoppers with easy answers. “We need to adapt to customers’ busy lifestyles and changing needs. One stop meal solutions offer a quick and easy answer that is fresh and tasty.” While every store has its challenges, for Kershaw it comes down to cost. “We are a high cost to serve store with around 9000 active SKU’s. Meeting such a broad market can be challenging in a small format store. Balancing staff costs while also trying to maintain high standards of service and presentation. It is a juggling act,” Kershaw added. “We don’t pay too much attention to our competitors as we are constantly challenging ourselves to improve and offer the very best service to our customers every day. I think our key differences are service, in-store experience and the pride our team takes in our store.” Four Square Martinborough is a pioneer when it
Footprint 750 m2
9,000 SKUs
Selling Area 450 m
Opening Date: March 1873
CHECKOUTS: 3 regular
OWNER OPERATOR:
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40 staff
comes to sustainability, leading the way with a waste reduction programme that was introduced two years ago. The programme has resulted in a 33 percent decrease in waste going to landfill. Where possible paper, cardboard, rigid plastics and soft clear plastics are all recycled. So far around 85 percent of its waste has been diverted away from landfills. Kershaw and his team were also pioneers in the removal of plastic bags. “We adopted and sponsored a community initiative to introduce 10,000 reusable organic cotton bags to Martinborough. It was a great way to get our customers on board with reusable bags. It was cool to see how our customers adapted to the change with ease.” Furthermore, the store has also been fitted with LED lights. With such an innovative attitude it’s no wonder that Four Square Martinborough was previously nominated for Store of the Year. Helping to keep the community happy is an important part of running a successful business, especially in a small town. “Providing great customer service is a constant focus for us. We pride ourselves on knowing our locals
and going the extra mile.” An example of the team’s passion for serving the community is their daily deliveries, where they run a free delivery service Monday to Friday for their elderly customers. The store is also involved with a number of different community groups in South Wairarapa. One of the latest initiatives is the Waiwaste program that provides food which is past its best-before date but still safe for consumption to local families in need. “We have a huge programme of support with South Wairarapa community groups in place. It’s important to give back to those that support you.” Developing their team is another focus for Four Square Martinborough when it comes to running a business. Kershaw is passionate about developing future grocers for the co-op and giving his team opportunities to grow. “Developing people and creating a great team environment are two key areas that are really important to me. We currently have two employees running through the Foodstuffs development programme to one day hopefully own their own supermarket.”
CONOR KERSHAW
Since October 2013
As for future plans, the store has some big things in the pipeline. After well over one hundred years in the same heritage-listed and earthquake prone building, the Kershaw family think it is high time for an upgrade. For the last 20 years, the family has been slowly buying up the adjacent buildings surrounding the store. The plans include the removal of all of the adjacent buildings to make way for a new purpose-built store that will eventually tie back into the existing store after it has been strengthened. The project will see the store increase to a 1400 square metre footprint with the addition of selfcheckouts and a more updated luxury look. The additional space will allow for two new tenancies, a full drive through back dock, an increase from three to seven checkouts, with the addition of three selfcheckouts, and a much larger future proofed offering for customers. “Tying the old in with the new while not losing the friendly local feeling will be an exciting challenge,” confessed Kershaw. Even though the redevelopment is still in its early stages, Kershaw hopes to see the project get underway in 2020. n
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columns GROWING FOR GOOD GRANTS Countdown has this month announced the inaugural recipients of our new Growing for Good grants programme. We are delighted to be supporting 30 schools throughout Aotearoa on an amazing range of sustainability projects, all designed to protect and enhance our precious environment. Kiri Hannifin
General Manager, Corporate Affairs and Sustainablitiy Countdown
We were truly humbled by the number and quality of applications we received. There were so many thoughtful, creative and innovative ideas and we were particularly heartened by the large number of projects designed to benefit not only the environment, but also support wider community wellbeing too. The purpose of this new Countdown programme is to enable children in primary and intermediate schools to undertake environmental and sustainable projects at their school. This year’s grants fund a variety projects including the installation of beehives and chicken coops, planting native trees and plants as well as fruit and vege gardens, investigating maramataka, growing Māori medicinal plants and reducing food waste. Countdown is keen to help grow the minds of young Kiwis who are interested in sustainability, and it’s very clear there are thousands of kids who passionate about doing more.
One of the things I have noticed with my own kids, and I am sure it is true of all children, is that they have a really pure view about the world and feel very connected to their physical environment. With this comes a very simple and uncomplicated approach to environmentalism. Where grown ups tend to see challenges, kids seems to see endless possibilities. This is an approach Countdown really wants to foster. However there’s also an unequivocal expectation from the next generation of New Zealanders that we - the grown ups, the business leaders and their fellow Kiwis – simply have to do more to protect and maintain what we are so fortunate to have here in Aotearoa. Whether that’s supporting this young passion through initiatives like our Growing for Good grants, or whether it’s making strident steps to reduce waste and put less unnecessary plastic into the eco-system, young New
Zealanders are clear that we all have a role to play. The schools awarded grants were (in alphabetical order): Amberley School, Apanui School, Ashhurst School, Bucklands Beach Intermediate School, Burnside Primary, Dovedale School, Fernridge School, Hampton Hill School, Henderson Valley School, Hobsonville Point Primary, Kadimah School, Kaimata School, Kawakawa Primary, Lake Brunner School, MacAndrew Bay School, Our Lady of the Snows School, Paekākāriki School, Pahoia Primary, Portobello School, Poukawa School, Pukeatua School, Puketapu School, South New Brighton School, Waikirikiri School, Waitoki Primary School, Welcome Bay School, Whakarongo School, Whangaparaoa School, Whangarei Immediate School and Winton School. n
FORMULATING OUR LOVE FOR SUGAR This year is set to be one of reformulation in the food and grocery in more ways than one. With consumer preferences continuing to trend away from higher-sugar products, there’s no doubt we will continue to see more and more lowsugar reformulated products appearing on supermarket shelves next to completely new low-sugar innovations.
Along with labelling and packaging, one of the major industry issues continues to be what more can be done to reduce obesity and encourage New Zealanders to lead healthier lives. Obesity remains New Zealand’s most pressing non-communicable disease, and the industry knows it’s a big part of the solution, which is why it’s continuing to develop healthier options over a wider of products in line with what shoppers want. Evidence of this can be seen almost anywhere you look down the food aisles. One example is the work Coca-Cola has been doing. Between 2015 and 2017 it reformulated 22 products, and now all its core brands are available in low- or no-kilojoule varieties. Other companies in the beverage sector, such as Frucor with its OH! range, are doing likewise. Research company IRI has been watching the change in consumer food and drink that has happened at the same time as this reformulation, and says that over the past 18 years, sales of beverages containing added sugar dropped from 64 percent to 45 percent, while sales of beverages with no sugar rocketed from 4 percent to 24 percent. That’s a big shift in consumer preferences away from sugars. In addition to that, the volume of beverages containing natural sugar (fruit juices etc) dropped from 20 percent to 11 percent. When you add the figures for added sugars and natural sugars, the result is that 56 percent of beverages being sold in New Zealand supermarkets last year had some form of sugar in them, compared to 84% in 2001. That’s a very big drop, and shows that New Zealand
Katherine Rich
Chief Executive NZ Food & Grocery Council
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consumers are getting the message about switching to low/zero-sugar beverages, including products such as low-sugar kombucha drinks that have taken New Zealand by storm. As well as that, there are now nearly 4000 food and beverage products that have a Health Star Rating label on them, and research shows more shoppers are looking at these as a guide to buying healthier products within a category as they shop down the aisles. Many products have been reformulated to achieve a higher star rating. Mix in education, community outreach, and workplace wellness programmes, and they will continue to be some of the most effective ways for industry to play its part in preventing or reducing obesity. The other reformulation trend of sorts I see continuing this year is around positive supplier-retailer relationships. There have been issues in recent years, but I believe FGC’s 2018 conference last November will prove to be a boost.
For the first time in four years, Woolworths NZ were there alongside Foodstuffs, and so suppliers were able to get a straight-up and direct gauge of where both are at with regards to targets, aspirations, and to share some casual comradery. Woolworths’ general manager of merchandise, Scott Davidson, gave a fantastic update on their latest food and grocery campaigns and how they are focusing on delivering fresh and healthy food, sustainability, and good service. He also said it was important that suppliers and retailers work together, and invited suppliers to talk to him and his team about any issues they had. These sorts of positive messages about working together were the same from Foodstuffs’ CEOs, Steve Anderson and Chris Quin, and were much appreciated. It was a great end to a busy year and sent a clear signal for 2019 and beyond. n
beveragenews $90M FACILITY OPENS IN TEXAS
ZESTY NEW FLAVOUR
Coca-Cola is launching the first new CocaCola trademark flavour in over a decade into the United States. Orange Vanilla Coke and Orange Vanilla Coke Zero Sugar will be available in retailers on February 25th. Orange Vanilla Coke has been in development for less than a year, eventually beating other viable options including raspberry, lemon and ginger. Orange Vanilla Coke had been trialled in Canada along with Coke Orange No Sugar in Australia last year. According to reports, “consumers in both markets loved the taste.” Coke Orange Vanilla is said to bring back and recreate memories of “carefree summer days.” Kate Carpenter, Coca-Cola brand director, said, “That’s why we leaned into the orangevanilla flavour combination—it’s reminiscent of the creamy orange popsicles we grew up loving, but in a classically Coke way,” said Kate Carpenter, Coca-Cola brand director. Carpenter believes that Coke is yet to reach its full potential in terms of creating and utilising new flavours. In 2018, Coca-Cola rebranded and relaunched Diet coke with additional flavours. These new flavours included Cherry, Blood Orange, Mango and Ginger Lime. Coke said that the use of flavour innovation had been one of the main factors contributing to Coke’s growth. A Coke spokesperson said, “The launch [of Orange Vanilla Coke] is the latest example of us listening to what consumers want and offering an array of choices that satisfy a variety of changing tastes and lifestyles—moving quickly and taking smart risks to bring more drink to market.” n
THE STEVIA DEBATE Petal, a sparkling botanical blend has reformulated its core line of drinks less than a year after launching in May 2018. The drinks, which are a cross between herbal tea, soda, and functional water will now be sweetened with organic agave, rather than stevia. The
US-based bottled water producer Niagara Bottling has invested US$90m into a bottling facility set to be constructed in Temple, Texas. The gargantuan building set to start in March will consist of over 450,000-square-feet and be split into two phases of construction. It is hoped that the development will be completed as soon as possible, with operations set to return to normal in the fourth quarter of the year. Niagara has been expanding its manufacturing network over the last few years and remains one of the US’s largest producers of private-label bottled water products in the US. Niagara promotes the recyclability of its
products – they do not use BPA. Niagara said that they are excited to add further job prospects to the Temple, Texas area, and look forward to being able to have state of the art and up to date manufacturing facilities. n
PEPSICO LAUNCHES NITROGEN-INFUSED COLA PepsiCo will release the world’s first nitrogeninfused cola, potentially creating an entirely new beverage category. According to the company, the nitrogen-infused drink will have a creamy flavour with velvety foam that gives the beverage a unique texture. “We couldn’t be more excited about how far we have come with the development of Nitro Pepsi. With Pepsi, we are going all in on delivering the most exciting experiences and offerings to our loyal fans – from engaging marketing programmes to disruptive new product innovation,” explained Todd Kaplan, Pepsi VP marketing. “With the creation of the world’s first ever nitro-infused cola, we will be able to introduce a creamier, smoother product, reimagining cola in a way that only Pepsi can, to a whole new set of consumers.” The new variant will be available in two flavours – original cola and vanilla. A full launch date is yet to announced. n
original beverage contained zero calories and came in three flavours; original rose, mint rose, and lychee rose. These flavours are being relaunched, but now contain ten calories per 12oz can. An additional three flavours are being launched with the revised formula,” said Candice Crane, Founder and CEO of Petal. “Sometimes consumers find stevia polarising because it can leave quite an aftertaste. It’s not necessarily bad, but some people don’t like it. “So we wanted to make the drink a little more gulpable.” There is a lot of challenge involved with sourcing organic ingredients Crane describes—the company works hard to develop a suitable supply chain to meet their standards and needs. As a lot of beverages look to reduce sugar in line with global trends, it will be interesting to see where other companies go with their recipes, and what they’ll use to flavour their drinks. n
BOOST TO REVENUE
Carlsberg Group has recorded a net revenue rise of three percent for the year. The increase has been attributed to strong performances of its core and craft beer brands, as well as its no- and low-alcohol beverages. The rise in revenue is the first time the company’s sales have risen in the last three years. Other contributing factors included the warmer weather in Western Europe and the spike around the 2018 FIFA World Cup. Carlsberg’s beers have been performing well across the board, but perhaps the most significant changes have come in the low- to no-alcohol beverages. Global trends see these drinks becoming more and more popular as health concerns and trends increase in public favour. The company has also made attempts to expand upon sustainable practices, removing the plastic rings which connect their multi-packs of beer and replacing them with glue. Carlsberg claimed that this would “reduce plastic waste globally by more than 1200 tonnes a year.” n
BREWERY SWITCHES TO RENEWABLE ELECTRICITY Budweiser, of AB InBev, is now brewed using 100 percent renewable electricity in Canada following an agreement with Direct Energy. AB InBev aims to brew all Budweiser globally with 100 percent renewable electricity by 2025. In Canada, Budweiser is licensed and produced by AB InBev-owned Labatt Breweries. Todd Allen, Labatta Breweries of Canada’s vice president of marketing. “Through this initiative, we can make sure that every watt we use to brew Budweiser helps green Canada’s electricity grid and contributes to our long-term business stability,” said Todd Allen, Labatta Breweries of Canada’s vice president of marketing, AB InBev also aims to make all of their packaging 100 percent recyclable by 2025. n February 2019
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columns MERGING CUSTOMERS WITH TECHNOLOGY I’m originally from the UK but have spent the past 28 years in New Zealand and Australia, working for leading FMCG companies such as Mainland, Goodman Fielder and Fonterra – whom I’m now getting used to calling ‘suppliers’, ever since joining the amazing team at Foodstuffs New Zealand. Dom Quin
Group GM Marketing & Customer Experience Foodstuffs (NZ) Ltd
I feel a huge sense of affiliation and love for working with locally owned brands like New World, PAK’nSAVE and Four Square and feel as if I’m waking up every morning and doing something for New Zealanders. It really is exciting to be working with iconic brands which are a central part of so many Kiwis’ lives – as community gathering points, huge employers and sponsors. Our stores and brands are institutions instead of just products. As a marketer, that’s meant a significant mental shift because shoppers have a much stronger sense of ownership of our brands, so what I’m selling is more long-term satisfaction and loyalty, and less of the short-term consumer hit. Coming from a farm, I’m excited that one of the emerging key expectations is clarity around provenance. I’m pleased to see things Kiwis returning to this most traditional of customer demands. They care more about where their groceries have come from. As a marketer I love being able to tell them that story. A big part of delivering satisfaction
NIAH TAYLOR
Communications Advisor Foodstuffs North Island
Niah Taylor grew up in Rotorua and completed her Bachelor Degree in Communication at Massey University. Self-professed “devoted Foodie”, Taylor now works as the Communications Advisor in the Internal Communications and Events team for Foodstuffs North Island.
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is truly understanding the customer and wrapping an experience around them. I’ve always loved trying to develop that – perhaps that’s the result of growing up on a farm, learning how to make stuff and taking it right through to purchase and beyond. And, it’s getting customers to purchase, repeatedly, which presents me with the ultimate challenge. To do this we need to tap into their evershifting attitudes and expectations, match these with behavioural and shopping data and then develop solutions. Lately, I’ve relished the opportunity to focus on the technological transition all FMCG businesses must embrace, as more and more consumers choose to shop online. Digital strategies that were once the preserve of IT geeks are now intricately intertwined with the customer experience. And, while technology is providing powerful and exciting new tools for marketers, it’s also constantly demanding new approaches, not only to stay ahead of the pack but also to ensure consumers don’t get bored. With the rise of the Digital Native customer totally connected through digital devices, it’s important to remain relevant by adding digital technology into the marketing mix and using that to communicate with our consumers.
We have made a very exciting step into online and we have great plans to expand into a superior shopping experience for our customers. We don’t want to be on the sideline of this one. We have made our first approach through the IShop app and now we are expanding the platform by accommodating ease of use. Our focus has been on designing a platform that’s better suited to tablets and mobile phones than existing web-based options, simply because the people shopping that way want to be able to move around at home, rather than constantly returning to their desktop. But we’ve added access through laptops, so we can talk to every customer. But that’s not everything. We’re using increasingly sophisticated tools with Clubcard, Sticky Club, Airpoints and FlyBuys to talk with customers – rather than at them. It’s challenging to get the balance right between digital and traditional marketing and a store experience. Now we can bring all the data points together with purchase behaviour, social media platform feedback and technology platforms, which means will mean we’ll be one step ahead of the consumer. Marketers have always wanted to read consumers’ minds; now we longer have to. n
Taylor’s interest in internal communication was initially sparked working for the Walt Disney Company. “I was fascinated by Disney’s techniques for embedding their culture and values and inspired by their success with internal communication.” The move to Foodstuffs helped Taylor expand on her desire to improve upon the way in which companies communicated. “I’m passionate about the ways companies communicate with their team members and the difference that an exceptional company culture can make to a business—so getting to be part of a team that plays a key part in initiatives to deliver that at Foodstuffs is like a dream come true.” Connectivity between customers and staff members is a tricky task that Taylor faces on a day-to-day basis. “Our supermarket brands are at the heart of communities around the country, which means that from the support centre in Auckland I can be connected with customers and team members from Kaitaia to Kapiti. The most rewarding thing about working at Foodies is knowing that what you do can make a difference to the everyday lives of everyday New Zealanders.” In a fast-moving industry, Taylor can identify the problems and looks towards finding solutions to improve shopping for customers and suppliers alike. “The biggest challenge is
wanting to change the world and wanting to do it all immediately and then getting reminded about the complexities of the real world.” Taylor’s approach to communication is practical — “we’re in a moment of history with five generations at work together, and I love seeing the different ideas and outcomes that this can bring to the table.” The ability to look at the bigger picture seems to be important for Taylor. Her perceptive problem solving brings a rejuvenated take on an age-diverse workforce. “Everyone at every age has something to give, and something to learn. I don’t like hearing things are too hard or that we can’t change the way things are being done. I’m committed to keeping my ‘early career’ energy so that when combined with growing experience, I can continue to challenge the status quo, bring a fresh take, and deliver change that’s bigger and better than before.” Currently, Taylor is studying part-time toward a Master of Communication degree which she hopes will further develop her critical thinking. “We’re constantly learning and having to come up with new ways of doing things, and the diversity of the work we do and the people we work with is one of the most interesting parts of my job.” n
techbytes STREAMLINED PAYMENT OPTIONS
Kroger Pay and Kroger Rewards are Kroger Co.’s latest developments aimed at streamlining customer’s payment and loyalty information. Global
trends indicate that 2019 will see the importance of consumer loyalty increase as people become more conscious of the origins of their food and whether or not it had been obtained ethically. If a store meets consumer standards, customers are likely to return. Kroger Pay has introduced a way in which their loyal customers can speed up checking out while gaining loyalty points, all in one go. Kroger believes that Kroger Pay reduces checkout time and creates a more frictionless experience for store associates and customers by offering a one-step payment solution. Kroger Pay can be used in regular checkout lanes
and self-checkout stations and can be linked to any significant debit, credit or prepaid card,” said Mary Ellen Adcock, group vice president of operations at Kroger. “Kroger Pay is one of the few mobile wallets that pairs loyalty and payment. The application of this exciting technology is another step in our front-end experience transformation,” Kroger has developed a way in which customers can save themselves time and money; on top of that, they are simultaneously encouraging customer loyalty. Kroger Pay is currently available at its Columbus, Ohio division, with plans to go nationwide by the end of the year. n
DIGITAL COOLERS Walgreens is set to test a new program that tracks consumer behaviour in the drink aisle. Using technology from a start-up company named “Cooler Screens,” Walgreens’ new digital coolers will be equipped with cameras, motion sensors, and eye tracking in order to monitor customer’s behaviour. The doors will look like a touch screen but will not respond to touch. In real time, the doors will offer advertisements to
INTEGRATION
customers based on their age, gender and reactions to various products in front of them. Cooler Screens and Walgreens stated that the screen-door technology is merely a way to better customers experiences in store. Cooler Screens is said to be working with 20 of the world’s largest consumer product companies including Coca-Cola and Nestlé. With technology like this, retailers
HQ MANAGEMENT
will gain better insight into their customers’ purchasing behaviour and be able to personalise adverts and encourage a unique experience for each individual. n
BACTERIA SENSORS
IBM has begun the development of tiny AI sensors capable of sensing pathogens on food. Between the harvest of a product, and it’s arrival on the shelf, there is plenty of time for bacteria to contaminate the product. Within the next five years, IBM predicts that their technology could put a stopper in bacterial pollution. The optical sensors pick up wavelengths of substances and infer microscopic details about them, including the presence of pathogenic bacteria. The sensors can be utilised throughout the supply chain, all the way through until the food is in the consumer’s hands. Pioneering technology like this unlocks limitless possibilities, and the general increase of food safety would be a significant relief to many areas of the world. n
MOBILE APP
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internationalaisle PINK DRINKS PROVING POPULAR
WOOLWORTHS PARTNERS WITH CHARITY
Pink drinks aren’t just popular on Valentine’s Day. According to recent reports, pink drinks have had a record year with more pink gin, prosecco and rosé being produced than ever before. The report conducted by the Wine and Spirits Trade Association (WSTA) has revealed that flavoured gin alone grew by a massive 750 percent between 2017 and 2018. Consumers reportedly purchased 41 percent (66 million bottles) more than the previous year. Last year the flavoured gin category was valued at £165 million. The pink
drink trend is largely influenced by a recent resurgence in gin with the drink growing in popularity with those aged under 45. In addition to gin, rosé wine has recorded its first growth for the first time in five years. n
Australia’s largest hunger-relief charity, Foodbank, has partnered with Woolworths for a Back to School appeal. The new appeal aims to provide food to families and children in need. Between the 30th of January and the 12th of February, customers will be able to purchase tokens for $1 when shopping at any Woolworth’s store— this will help provide two meals to the needy. “15 percent of children living in food-insecure households go to school at least once a week without lunch,” said Brianna Casey, CEO, Foodbank. A 2018 Foodbank report stated that almost half of Australian families in
need reported feeling less stressed (48 percent) and better supported by their community (45 percent) after receiving food relief. n
THE THREAT OF THE “HARD DISCOUNT” Two years ago, Lidl, the European hard-discount shop landed in the United States. Recently, Aldi, another hard-discount store, embarked on an aggressive expansion plan. Although the market remains mostly undisturbed, a new report from management consulting firm Bain & Co. urges mainstream grocers to stay cautious. The study, aptly titled, “How U.S. Grocers Are Standing Up to Europe’s Hard Discounters”, predicts that the slow and steady gains seen by the hard-discount grocers translate to a growing competitive threat for their
THE SIZZLING HOT MEAT DEBATE
mainstream rivals. According to the report, Lidl and Aldi utilise their strong customer advocacy and their ability to coerce shoppers into crossshopping to increase their presence and popularity Stateside. While the numbers may not paint a drastic difference, according to the study, the hard-discounters are hitting where it matters, outperforming in two crucial areas: best every day low prices and best value for money. Lidl and Aldi are becoming growing threats for traditional grocers – a danger which will need careful monitoring if traditional grocers are to stay relevant. n
A war over the use of the word ‘meat’ is heating up in the US. Beef and farming industry groups are trying to make using the word ‘meat’ on plant-based food products illegal. So far, these organisations have managed to persuade legislators from over a dozen states to introduce laws that would outlaw the use of the word when describing sausages or burgers that are made with plant-based ingredients or grown in a lab. It is believed that the groups are putting pressure on legislators due to the growing popularity of plant-based meats and increased sales. n
PLASTIC PACKAGING TAX
The UK government has announced plans to introduce the worlds first plastic packaging tax by April 2022. The charge will be applied to all single-use plastic packaging products that contain less than 30 percent recycled content. The government has this month opened the plan up to the public for consultation to determine what items should be taxed, and the threshold of recycled material. The consultation will also evaluate the likeliness of a Deposit Return Scheme in the country. n
RISE IN MIDDLE AGED VAPERS Mintel is reporting a rise in middle-aged vapers as it reveals that 20 percent of 45-54-year-old Brits are opting for the e-cigarette option. The biggest rise is seen in Brits aged 45-54, up from 13 percent in 2016 to 20 percent in 2018. 18-24-year-olds are the most likely age group to vape (28 percent); usage among this group has risen at a slower rate than their middle-aged counterparts, increasing from 24 percent in 2016. Despite this slower growth rate, almost
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six in ten (57 percent) Brits feel that too many young people vape. Today, as many as one in five (19 percent) Brits vape, up from 17 percent in 2016, with men (26 percent) twice as likely to vape than women (13 percent). Sales of e-cigarettes are performing well, despite the slowdown in sales in 2016. Valued at £283 million in 2018, the market experienced strong growth increasing 12 percent from £252 million in 2017. n
ismreport ISM COMES TO A CLOSE After three successful trade fair days, ISM came to an end on 30 January 2019 with an excellent result. Over 38,000 trade visitors from over 140 countries experienced a host of new products and an attractive event programme at the world’s largest trade fair for sweets and snacks. 1,661 exhibitors from 76 countries presented a comprehensive range of exhibits and used the trade fair to present their new products. ISM was able to slightly increase its level of internationality again up to 87 percent. “Once again ISM confirmed its international
standing as the industry’s most important business platform. “Not only the stable, high key figures corroborate this, but also the high level of quality of the exhibitors and visitors,” summed up Gerald Böse, president and chief executive officer of Koelnmesse. Top purchasers again came from large trading companies and importers. The German trade was also represented in its entirety once again. Of the top 20 international food retailers, 18 were on-site. Furthermore, the growing significance in the online trade was
INNOVATIONS AT ISM
reflected by the participation of numerous top e-commerce companies at the trade fair such as Walmart and Amazon. The fair recorded significant
growths in the number of trade visitors from East European and the Baltic countries, South Europe and North America. n
Custom-made products for the individual consumer were under focus at this year’s ISM trade fair. Here the manufacturers took into account the consumers’ growing need for a healthier and more sustainable-conscious diet. In addition to vegetarian and vegan as well as gluten-free and lactose-free offers, products with vegetable-based proteins, natural ingredients and sustainably grown raw materials were among the most important trends of the trade fair. A large range of sugar-free/sugarreduced and fat or salt-reduced sweets and snacks were exhibited. The top three innovations of
the “New Product Showcase” were distinguished again this year at the exhibition. The top winner was HPW with the Fruit Roll-Up from Switzerland, while second spot went to Katjes Fassin GmbH & Co. for its Hemptastic Hemp Bar from Germany. Roelli Roelli Confectionery took third place with its Roelli Roelli Swiss Cannabis Gum from Switzerland. For the sixth time, the ISM Award was presented to honour outstanding achievements in the sweets and snacks industry. This year the award went to Prof. Dr Hermann Bühlbecker, the sole shareholder of the Lambertz Group. n
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Eco Bottle
Adult Soda Line A line of ‘adult’ sodas has launched in Australia in order to tap into a market previously untapped. People looking to reduce alcohol and sugar consumption will find the answer here. This is a good way for consumers to forgo uncomfortable social interactions because they aren’t holding a drink. Somersault, a slow-brew soda start-up wanted to create a brand and packaging design that would be aesthetically distinctive—something that supermarket owners would want on their shelves. Denomination, a design company, designed the packaging with a minimalistic approach, something that would represent the “fewer additives is better” mentality that Somersault approached this drink with. The drink will be available in the following flavours: cola with pear and lime, lemon squash, limemonade, and orange and mandarin.
Vote for the Best Mars has added three new internationally inspired limited-edition M&M flavours to its peanut range. The launch of the three new flavours is part of the brand’s Flavour Vote in which consumers can vote for their favourite flavour, with the winner becoming a permanent fixture on the shelf. The three international flavours are; English Toffee, Thai Coconut and Jalapeno. The winning flavour will be announced to consumers in August.
Highland Spring has developed a new bottled water range made from 100 percent recycled plastic. Due to the recycled plastic, the appearance of the bottle is cloudier than regular plastic bottles and will cost slightly more than its traditional counterparts. The new Highland Spring eco bottle is set to hit UK shelves this month.
Vegan Treats
Sour Cereal A Sour Patch Kids breakfast cereal has launched in the US. Confectionery giant Mondelez and Consumer Brands partnered to release the cereal inspired by the popular candy with the same name. The cereal has a sour coating with a sweet finish. “We are excited to introduce fans to a new first-of-its-kind cereal, one that they never dreamed was possible,” said Roxanne Bernstein, chief marketing officer at Post Consumer Brands.
Menz’s FruChocs range receives an update in the form of two new flavours. Vegan Dark Chocolate FruChocs and Strawberry flavoured FruChocs have been released following the growing demand for vegan-friendly products in Australia. Real fruit is covered with smooth dark chocolate making for one tasty, sweet treat.
Spicing Things Up Doritos have released two new flavours to join the already delicious range of options it has currently. The two new Flaming Flavours are Southern Sticky Chicken and Mexican Jalapeno Poppers. According to Eric Burke, Doritos Brand Manager, “[The] new range is inspired by spice profiles of international dishes—we can’t wait for Australian consumers to experience the taste from home.”
Cheesy Baked Snack
Mochi-Ice Cream British mochi ice cream brand, Little Moons, has released a vegan Belgian chocolate mochi. The new mochi has launched after over a year of development. At only 64 calories per ball, the bite-sized balls of vegan Belgian chocolate ice cream wrapped in a soft layer of mochi and dusted with cocoa powder are a treat anyone can enjoy. These delicious little morsels are gluten-free and contain no artificial flavourings, colours or preservatives. Mochi is made from a naturally glutenfree rice flour dough which is worked until it attains a soft and chewy texture. The flavours available from Little Moon include summer raspberry, toasted sesame, Madagascan vanilla, Sumatran coconut, Alphonso mango, and Uji matcha green tea. They are all available in the UK.
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Breakfast Snack
Sonoma Creamery has launched a new snack, brilliant as a salad topping or for eating plain. The new Savoury Seed Baked Cheese Toppers are made from white cheddar and ten-month aged parmesan. They also contain pumpkin and sunflower seeds. The unique flavour combination is versatile, and these bite-sized snacks can be incorporated in many dishes. These toppers are cheesy, crunchy, keto friendly, gluten-free, all natural, and have zero sugar.
Irish brand Truly Yours has released a range of granola and yoghurt snack packs to the European market. The packs come in recyclable packaging that acts as a bowl. There are four flavours available in the form of fruity granola with strawberry yoghurt, natural granola with peach and passionfruit yoghurt, nutty granola with cherry yoghurt, and seed granola with raspberry yoghurt. Each pack contains 50g of granola and 100ml of yoghurt. The new product is said to be a response to the increasing popularity of granola and yoghurt as a breakfast combination.
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Sleepy Ice Cream
Electrolyte Organic Tea
Ice cream brand, Nightfood claims that its ice cream helps users sleep better. The brand has a range of eight flavours and has just 280 to 400 calories per pint. Each flavour is filled with amino acid glycine, magnesium, digestive enzymes, protein, fibre, and low sugar levels, rumoured to help users sleep better.
Vibe is a ready-to-drink organic electrolyte tea. Mindfull Inc. makes Vibe with artesian spring water and promotes the naturally occurring electrolytes and minerals. Vibe contains 48mg of organic black tea, one gram of sugar, and 20 calories in each of the 500ml servings. Vibe will be available in four flavours: Mint, Lemon, Peach and Pomegranate. Vibe will be a great way for consumers to feel hydrated and energised during warm summer days.
Minute Maid Colour Coca-Cola India has launched a new juice that is supposed to combine the goodness of fruit juice with a sparkling element. Minute Maid Colour is a grape juice targeted to consumers in the Indian state of Tamil Nadu. This recent release is an attempt to make Coca-Cola a local commodity, rather than a daunting international company. Minute Maid is already a popular juice option that dominates breakfast tables across the world.
Vegetable Granola
Non-Dairy Additions
Kellogg’s has released a vegan cereal in added vegetables into the UK market. The cereal will be sold under the name W.K. Kellogg and is the latest addition to join its plant-based, No Added Sugar Granola range. The granola is made with the healthy additions of dried raspberry, apple and carrot. Sarah Bulfield, cereal inventor for Kellogg’s UK, said that developing the vegetable granola was a balancing act. “All sensory aspects had to be taken into consideration — texture, colour, and most importantly flavour. The sweetness from the apple and the sharpness of the raspberry is all balanced with the earthiness and subtle sweet notes of the carrot pieces,” said Bulfield.
The non-dairy ice cream war is heating up with Halo Top announcing the addition of three new non-dairy flavours to its line-up. Peanut Butter and Jelly, Mint Fudge Cookie and Chocolate Hazelnut will be joining the already popular 14 strong range as non-dairy alternatives continue to increase in popularity. The ice creams are made using coconut milk and contain 360 calories and 20g of protein per pint. Halo Top launched its first vegan-friendly alternatives back in February 2017. The non-dairy offerings are not yet available in New Zealand.
THC Infused Beer An alcohol-free cannabisinfused beer has launched in the US. The High Style Brewing Company was inspired by traditional pale ales when creating the beverage. Coastal Haze uses Cascade, and Amarillo hops and is infused with 10mg of THC extract.
Thirst Quenchers
Collaborative Craft Beer Rock legends Metallica have teamed up with Arrogant Consortia, a section of craft brewery Stone Brewing, to create a ‘genre-transcending’ craft beer Enter Night. The beer amalgamates the principles that Metallica and Stone Brewing share— fierce independence, shattering preconceptions, and challenging convention. Fans of the band and growing trends towards craft beer is sure to make Enter Night popular among consumers. The beer is available across the United States, with its international release date coming in spring of 2019.
ERRATUM IN SUPERMARKETNEWS' DECEMBER/JANUARY ISSUE, THE CORRECT WEBSITE FOR THINK FOOD IS WWW.THINKPRODUCTS.COM.AU.
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Cocoloco, a Singaporean beverage brand has released a naturally pink coconut water alongside a new line of cold-pressed fruit juices. Cold-pressing juices helps to lock in flavours and create a natural extraction process for the fruit, meaning the end product is healthier and more organic. The Whose Juice? range has a variety of flavours, including watermelon, kiwifruit, and mango and each contains zero preservatives, colourings, or added sugar. The new coconut water and Whose Juice? range are available in Singapore.
Vegan Easter Eggs Goupie has launched a vegan-friendly Easter Egg contained within 100 percent recyclable packaging. The eggs are made of Goupie’s confectionery chocolate and will be available in two flavours: Original Goupie and Salted Sticky Toffee Goupie. Consumers with dietary requirements will be excited for this sweet Easter treat.
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