SupermarketNews // March 2014

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Product Description

BB Code

CRUSHED SALT & VINEGAR 200g

EAN

TUN

Units/Case

Pallet Configuration

320013056

1-94-00566-00792-1

12

8 X 7 = 56

ULTIMATE BBQ RIBS 200g

320013053

1-94-00566-00789-1

12

8 X 7 = 56

HOT & SPICY CHICKEN WINGS 200g

320013055

1-94-00566-00790-7

12

8 X 7 = 56

ULTIMATE BBQ RIBS 80g

320012882

1-94-00566-00793-8

18

8 X 7 = 56

HOT & SPICY CHICKEN WINGS 80g

320012883

1-94-00566-00794-5

18

8 X 7 = 56

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March 2014 • Vol. 7 No. 3

“When two players control such a huge chunk of the market, those selling to them are at more of a disadvantage,” Katherine Rich (see page 9).

FONTERRA BRANDS BOSS STEPPING DOWN SHORTLY FONTERRA Brands managing director Peter McClure is stepping down at the end of July after leading the company and its various earlier incarnations for the past 18 years.

The company has announced his replacement will be Tim Deane who joined Fonterra eight years ago and

PETER MCCLURE

TIM DEANE

and for the past four years has been director of global sales for NZ Milk Products.

McClure is a former chairman of the Food & Grocery Council and several years ago received the organisation’s Lifetime Achiever Award. n

OPPOSITION MAGAZINE IN RECEIVERSHIP FMCG magazine, opposition trade magazine to Supermarket News, is one of a number of publications now in receivership after action earlier in the month by creditors.

The magazine was founded by Supermarket News publishers Review Publishing back in 1996 but lost in a failed merger forcing the launch of this

publication by owner Peter Mitchell.

FMCG owner Mediaweb had been reported to be having financial difficulties in recent times with NBR commenting on cashflow difficulties and unpaid staff. The magazine has not been published for a number of months with the last edition understood to be the October issue. n

FOODSTUFFS NI SAYS IT’S STILL COMMITTED TO WELLINGTON

FSNI managing director Murray Jordan says his recently merged North Island operation is still committed to the lower North Island and will have a substantial presence in Wellington for the foreseeable future. This follows on industry speculation that it intended to make job cuts at the Silverstream support centre.

He said while there had been 37 redundancies in Wellington and Auckland, there had been a large number of new jobs created and good headway was being made with the merger especially in overcoming legacy systems and different internal operating platforms.

“We accept that some people

may resign, retire or relocate to new opportunities in the group over the next two or three years but we are committed to an ongoing transparency with them and just as equally committed to our customers and members,” said Jordan. n

COUNTDOWN MAGAZINE’S PUNCHDRUNK NEW EDITOR JASMINE Walters has stepped up from an ON MP’S advertising and editorial support role to take over as Editor of Supermarket News.

CLAIMS Jasmine, an WHERE there’s smoke there’s fire, the old adage says. But it’s not all the way it sounds from MP Shane Jones’ claims.

There’s little doubt that negotiations in the grocery industry are tough and if a category manager has overstepped the mark, then it will come out. It is our opinion that the Commerce Commission will find little more than lawful business dealings, even though some aspects may not be approved of. Both our retail groups are hard negotiators and in the majority of situations, the end result is justifiable. Check Supermarket News publisher Peter Mitchell’s opinion of page 4 of this issue. n

RMIT Melbourne journalism graduate, has been with Review Publishing and Supermarket News for the past three years and is well known to many in the industry.

As well as her journalism and advertising experience, Jasmine has had considerable front of house and management experience in the hospitality industry.

She has run one of the world’s top 20 bars, the Lonsdale in London’s Notting Hill and the famous Fernanado Peire-owned Ivy Members Club also in the British capital. n

contents 06 Cheese Awards 16 Store Check 23 Beauty Aisle 24 New Products 28 Artisan

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21 25

editorialcomment Dangerous Viewpoint

Abundance of News

I HAVE always worked on industry editorial comments on the basis that the desk is a dangerous place from which to view the world. So getting out in the market place and talking to people has been our forte in this publishing business. That’s not to say everything we hear is fair dinkum and opinions coloured by the last person we spoke aren’t always right.

But the truth is that you do get a feel for things after 40 or so years writing about opinions, facts and sometimes sheer bullsxxx. In that regard, there are always outsiders wanting to make a name for themselves by exaggerating happenings in our industry and misinterpreting them for their own, often political, benefit.

The Countdown affair is unfortunate and predominantly a bit of political oneupsmanship. The unfortunate aspect is that it could have been referred to the Commerce

THE grocery industry has been under a microscope the past month so we’ve tackled the contentious issue raised by Shane Jones in this issue with expert opinion pieces by publisher Peter Mitchell and the FGC’s Katherine Rich. Both make for interesting and informative reading with Katherine diplomatically covering industry concerns on page nine and Peter dishing out some home truths on page four. We also cover the necessity of food fraud prevention for manufacturers, potential changes to employment legislation, Cardinal Logistics’ new warehouse facilities and take a closer look at the hot beverage and soup categories.

Following a successful launch in Seattle, online retailer Amazon has announced plans to roll out its fresh food home delivery service into the UK. While Amazon had already been offering dry grocery items to UK consumers through its website, the AmazonFresh service will cover a full range of fresh and frozen foods and aims to attract Tesco and

DON GRAHAM

CHINA TRADE APPOINTMENT

AUCKLAND marketer Don Graham of William Aitken continues to pursue his interest in China trade with his additional appointment as membership director of the NZ China Trade Association. He is continuing his role at Aitkens but will share information with the industry on trade matters. He is of the opinion that trade will grow substantially between the two countries. The association conducts regular breakfast seminars and provides practical services to importers and exporters. n

Commission without the political blowhardiness that has certainly cost the group hundreds of millions of dollars in lost turnover.

We can’t blame Foodstuffs for taking advantage of the situation, just as we would like to with the demise this month of our opposition magazine.

For the consumer, though, it has blown over and is as interesting as yesterday’s newspapers. The short and sharp attack, however misguided, might be a blessing for suppliers who have had notice served by other than themselves on the groups to be better behaved.

PETER MITCHELL, Publisher

Sainbury customers. Locally, several companies are already offering a similar fresh produce delivery service on a much smaller scale but it could bring increased competition to the marketplace if larger operators looked to challenge traditional grocery channels.

After several years working alongside Pete on SupermarketNews I’m afraid to say my time avoiding his ever present camera has come to an end, as evidenced by my mug shot on the front page. With Peter relinquishing the reins, albeit slowly, I’m sure you’ll see me out at a lot more industry events but if you have any company or brand news please feel free to contact either myself or Felicity on (09) 304 0142 ext 713.

JASMINE WALTERS, Editor

SUGAR CALLS OFF-TARGET AND DISCRIMINATORY THE New Zealand Juice and Beverage Association is rejecting calls for the wholesale banning of all sugar sweetened beverages (SSBs) labelling them off target, ineffectual and discriminatory.

The NZJBA says science has shown that no one factor including no single food or drink is responsible for obesity and therefore it is simplistic and misleading to suggest that reducing or eliminating SSBs from the diet will solve the obesity issue.

Consumers have a right to choose and the NZJBA believes strongly that when fully informed, consumers are fully capable of making good lifestyle choices.

“At the same time we acknowledge that further education about the appropriate way to maintain a balanced diet, which includes those food and beverage products with added sugar, will assist consumers to enjoy a fit, active, healthy lifestyle without foregoing homemade baking, pavlova, birthday cake, Tip Top Ice Cream, bread and jam, a cup of Milo, a piece of Whitakers chocolate or a soft drink.”

The NZJBA says consumers derive their energy from a wide variety of sources from breakfast cereals, breads, snack foods, fresh fruit and vegetables, tea and coffee and yes, foods that include sugar, as well as a myriad of others.

While single-product bans may go some short distance to thwart the efforts of those doggedly determined to stack their diets with sugar (which, according to the latest New Zealand Nutrition Survey data are not the norm and are not increasing in numbers), it will not get people out and exercising nor will it stop or stem the intake of high energy foods. It will however deny the opportunity for millions of others who enjoy the taste of a soft drink, and those who use it to enhance their gin or rum; it takes away an important and valued option for the sober driver and so on. Most importantly promulgating the banning of something that, used as intended, is harmless denies the fundamental right of choice.

Despite refuting the validity of being singled out the beverage industry fully accepts it, along with all other players

in the food and beverage sector, has a role to play in finding solutions to the complex issue of obesity.

“The industry has been entirely consistent in its openness to reasoned discussion on how we can work together with those with a genuine concern for public health to promote healthier lifestyles for New Zealanders.” says NZJBA spokesman Kerry Tyack.

“Producer members of the NZJBA are fully committed to providing consumers with more choice, options with fewer and no kilojoules, clearer labels, and smaller portion sizes and are actively looking for further ways to ensure consumers understand the importance of a healthy, balanced diet.”

“This is a fundamental difference between the beverage industry and some of the contributors at the FIZZ conference. While they want to deny consumers choice NZJBA members are listening to what consumers are telling them and protecting the right to choose by offering more options and therefore more opportunity to make the best choices to suit their lifestyles.” n

SupermarketNews is published under license. Please direct all enquiries and correspondences to SupermarketNews. The opinions and material published in this edition of SupermarketNews are not necessarily those of the publishers unless specifically stated. All material in this publication is copyright and may only be reproduced with the consent of the publisher. Copyright 2013 ISSN NO. 1173-3365

PUBLISHER Peter Mitchell, peter@reviewmags.com

MARKETING Tania Walters, tania@reviewmags.com

EDITOR Jasmine Walters, jasmine@reviewmags.com

CIRCULATION & DISTRIBUTION Kieran Mitchell, kieran@reviewmags.com

ADVERTISING SALES Jasmine Walters, jasmine@reviewmags.com Felicity-Anne Flack, felicity@reviewmags.com GRAPHIC DESIGN Raymund Sarmiento, raymund@reviewmags.com

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Suite 9, Level 3, 20 Augustus Tce Parnell, Auckland PO Box 37140 Parnell Auckland Tel (09) 3040142 Fax (09) 3772794

SUPERMARKETNEWS SUPPORTS:

LOTTO MOVES TO THE FRONT END

THE Lotto pilot programme at checkout trialled for the past three months in 11 Countdowns has proved successful and got Government approval to move mainstream including into New World, Pak’nSave and Four Square.

Foodstuffs has been in discussion with the Lotteries Commission and is expected to be not far behind the Countdown introduction where over 100 of its supermarkets are expected to be offering tickets by late this month.

The standard Lotto offering in the foyer of most supermarkets will remain under the new scheme with checkout

sales being restricted to only certain types of tickets but can be added to the grocery purchase and paid for by credit card.

From a turnover point of view, the pilot programme showed an 8% increase in sales over the standalone Lotto counters. It showed a positive customer experience with the trial meeting all success criteria. No increased time or delays at the checkout was reported during the trial.

Naturally, the Problem Gambling Foundation is opposed to the move and said it made gambling an everyday part of customers’ lives. n

OTHER FUEL DISCOUNT OPTIONS IN BOTH New Zealand and Australia, new fuel discount options have come to pass with buying at supermarkets no longer the only cut price drawcards. In New Zealand, Supermarket Online has launched a fuel saving when non perishable dry groceries are bought and delivered direct.

Others currently offering fuel discounts with purchases now include Burger King, Hammer Hardware, Take Note stationery outlets, a car number plate frame company, tyre sales company Bridgestone and even added to any Maxigesic sales at

pharmacies. There are also a number of others coming on board through the AA Smartfuel card operation.

In Australia, the exclusive fuel discounts being offered by Coles and Woolworths that have been under attack from many other retailers, are now not the only ones in the market.

One company FuelCents, is offering more than $2.5m in subsidized rewards to get businesses, suppliers, brand manufacturers and retailers on board and is already offering deals on basics like bread, milk and coffee.

At the same time, the ACCC is examining the anti-competitive behavior of the supermarkets over fuel discounts. n

PALLET PROJECT TO CUT COSTS

SHELL MOVES OUT OF AUSSIE

ILLEGAL DEALS IN TOBACCO

ALDI STRONG

FROM UK comes a report that pallet supplier CHEP is to lead a campaign to bring suppliers and retailers into agreement on a standard pallet size that it claims offers hugh cost savings.

The campaign focuses on the half and quarter sized pallets used in store and is expected to increase the uptake of retail-ready formats.

ONE of the biggest cigarette import syndicates in Australian history was cracked last month by police after they found a team trying to smuggle $A67m worth of tobacco into the country. They found 70 tonnes of tobacco, 80 million cigarette sticks and a quantity of drugs hidden in packaged food products mainly from Indonesia and the United Arab Republic.

SHELL, who moved out of New Zealand a couple of years ago, is now leaving Australia. It has sold its Australian refinery and all its petrol stations to global oil trader Vitol SA for $A2.6b with the Swiss company now being the country’s largest independent fuel retailers. The deal includes 860 service stations as well as bulk fuels, bitumen and a chemicals business.

ALDI has quadrupled its customer base over the past eight years and now has a monthly customer count of around 4.2m compared with one million in 2005. Coles claims 9.5m customers a month and Woolworths 9.5m. Aldi now accounts for 10.3% of all Australian grocery dollars.

COLES MD SUCCESSION

COLES chief operating officer John Durkan will replace Ian McLeod as managing director from July 1 as McLeod moves to a senior role in the wider Wesfarmers Group.

Durkan joined Coles in 2008 as merchandising director and became COO mid last year. In the latest half year to December 31, Coles delivered strong earnings growth of 10.7% to $836m for the half.

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PLAIN PACKAGING DIDN’T WORK IN AUSTRALIA OVER a year after the implementation of plain packaging, statistics have shown that there has been no impact on legal tobacco sales – but there has been an alarming rise in black market tobacco sales.

The Australasian Association of Convenience Stores reports the actual volume of sales has remained stable with some store reporting sales increases. But the additional costs that small retailers had been forced to absorb seriously impacted on their bottom lines.

A Roy Morgan Research study had also shown up problems including 62% of small retailers reporting customer frustration, a major increase in time taken to serve customers, long times to order stock and at least a third of all customers inquiring about the purchase of illicit stock.

The Australian Retailers

Association said the change to plain packaging had been a waste of retailers’ time and resources. n

GOODMAN DIVESTMENT INCREASED divestments in the processed food sector has seen Goodman Fielder selling its biscuit business, its smallgoods and meat division and its pizza business.

The biscuits division has been taken by Green’s Foods of Australia.

The smallgoods products including Kiwi, Huttons, Brooks Deli, Milan and Sizzler products, has been sold to Christchurch-based Hellers. The Leaning Tower pizza business has gone Momma’s Frozen Products. The loss on the sale of the biscuits business was thought to be around $50m. n

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WHAT’S THIS ALLEGED COUNTDOWN BULLYING ALL ABOUT? “Some of our suppliers may well believe there is some smoke but the majority have long been inured to hard negotiations from both Progressive and Foodstuffs and I personally believe that a complaint before the Commerce Commission is likely to go nowhere,” says Peter Mitchell.

WHAT it will do, is bring some fresh air to a few dodgy problems suppliers have faced over many years and the odd category manager who may have overstepped the mark verbally, might get his or her come-uppance.

Both Countdown (under its previous guises and ownerships) and Foodstuffs have been lambasted by suppliers over some of their tactics and it is nothing new for these to be discussed behind many a closed door.

The truth is, it’s all about negotiating skills and those supplier companies without firm policies and skill to handle these situations – and there are plenty of different ones – will always have a gripe.

The supermarket buyers and the supplier sales teams are not stupid.

They do have to live together in the industry and it doesn’t work if they don’t make a profit. The current problem revolves around a politician trying to make a mark in election year and hitting on an issue that in truth has absolutely nothing to with the consumer or his constituents.

If Jones thinks he is siding with Kiwi battlers, he needs to think again. Both supermarket groups have a generally single target in mind and that is providing consumers with the lowest possible prices and the best way to do that is to screw suppliers down to their lowest acceptable level. So criticizing either group for providing low prices at the expense of suppliers is hardly an issue that would cause any concern to shoppers – it’s what they want.

Jones has accused Countdown of Mafioso tactics, claimed Woolworths chairman Ralph Waters of ringing suppliers here to shut them up and said his constituents are aghast at “slotting fees” and commercial secrecy.

That’s exactly what retailers do in the grocery industry because they own the shelf real estate.

While there’s little doubt that Foodstuffs has gathered a temporary bonanza from the publicity, a major concern in what until then was a reasonably stable and organized industry, Countdown has lost millions of dollars in turnover because a politician turned some unknown accusations into an affair behind closed doors.

There is little doubt over many years that some silly demands have been put on a few suppliers, but the current spectacular accusations make no sense. The Food & Grocery Council says it has some instances

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relating to retrospective payments which chairman Pierre van Heerden says is an unwelcome development.

Dave Chambers at Progs denies it and even if a rogue category manager did suggest it, he or she won’t be bringing that chestnut up again. Anyway, the FGC said it and its members will fully co-operate with the Commerce Commission.

Already the FGC and its predecessors have had ongoing meetings with the retailers about harsh bargaining practices over many years and generally the outcomes have been amicable – in fact the trade relationships in New Zealand are probably amongst the best in the world and none of us would like to change that.

The additional claim that suppliers had to pay kickbacks to category managers (one claimed, according to Jones, that he had to pay $500 a week under the table to keep his products listed) are certainly strange and there’s not a big company in this country that would stand for that. The days of payola are long gone.

Jones has never gone to Progressive or Foodstuffs, we understand, to find out for himself. And one of the complaints listed in the NZ Herald was from a supplier that actually went out of business in 1999 and that claim is less than credible 15 years later and hardly the basis for a Jones complaint.

Jones may believe he is vindicated in that the Commerce commission will look at it – but I personally believe this will come to a dead end with a bit of finger wagging if anything but strong negotiating is proven. n

AUSTRALIA ANOTHER ISSUE IT should be made clear, as all the suppliers know, that the question of New Zealand made private label products that Woolworths is clearing in some categories, has absolutely nothing to do with the Countdown issue in this country. It is a total separate issue although the politicians are using it as a red herring to bring our local Woolworths subsidiary to heel. The Australians are simply answering a very strong nationalist call to promote Aussie made products – but the truth is that New Zealand is only one, and a minor one to boot, of private label products on Woolworths’ shelves. n

SNEEZESAFE TURNS 10 KIMBERLY Clark’s flu hygiene programme, Kleenex Tissues SneezeSafe, kicked off at Milford Primary School this month for its 10th consecutive winter in Kiwi classrooms.

The health education lessons use interactive methods to reinforce flu hygiene skills at school with the simple

message – trap it, bin it, wash it. Since being invented for Kiwi schools, similar programmes have been launched in Australia and the UK. Pictured above is Kimberly Clark’s head of marketing Grant Hartley with Milford Primary School teacher Melanie Dixon and her class. n

BISCUIT PRICE WAR LOOMS THE AUSTRALIAN sweet biscuit category could soon be embroiled in a price war with The Campbell Soup Company planning to invest more money on consumer advertising and promotions for its struggling Arnotts business. Arnotts controls 51% of the sweet biscuit category with the Tim Tam, Salada and Jatz brands, however Campbell’s doesn’t predict

Arnotts will be a growth driver in the $1.3 billion category this year.

“Restoring growth in this important business is a work in progress that will take time,” says Campbell chief executive Denise Morrison. The once celebrated Tim Tam brand has faced strong challenges in recent years by margin pressure and aggressive branding competition. n

YOUNG BREAD BAKER OF THE YEAR AIDAN Horner from Quality Bakers in Nelson and Bree Scott from Lyttleton Bakery have been declared joint winners of the 2014 Young Bread Baker of the Year competition. The duo impressed judges in Auckland last month with their practical baking, theoretical knowledge of baking

technology and presentation of research into current baking industry trends in salt reduction. Sponsored by the NZ Association of Bakers, Aidan and Bree have the opportunity to increase their industry knowledge and experience with a $7,000 research grant. n

supermarketnews.co.nz

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ICE CREAM AWARDS

JUDGING for the 18th ice cream awards will take place in Auckland next month with winners to be announced at the annual conference held in Blenheim in May. This year’s awards will feature 11 categories including a Best of Chocolate, Premium Vanilla, Low Fat, and Kids Choice. A New to Market award will also be presented to the product with the highest total score and launched in the previous 12 months. Closing date for entries is the 3rd April. For more information and entry forms please visit www.nzicecream.org.nz

JBA MEETING IN NAPIER

THE Juice and Beverage Association, now in its 20th year, has moved its annual conference from the traditional Tauranga to Napier. The conference is scheduled for October 7-9. Secretary for the past number of years, John Robertson, has resigned from the Chamber of Commerce who have been servicing the organisation and has been replaced by Christine Connon.

NEW WORLD METRO OWNER

THE New World Metro unit in Auckland’s Queen Street, as reported last month, has a new owner in Steven Yin. Steven began with Foodstuffs in 2003 and first worked in Ellerslie Four Square before moving to Whangarei Pak’nSave as checkout supervisor in 2006. There he worked in various management roles. He graduated from the Foodstuffs management development programme in 2007, the leadership development programme in 2008 and was finally approved under the trainee operator programme in February last year.

DUTCH STYLES A STAND OUT

Bri DiMattina (homecrafted cheesemaker) & Anna Rolfe

Diana Hawkins (Karikaas Natural Dairy Products) & Mark Inglis (AsureQuality)

DUTCH influenced cheeses have collected three supreme awards at this year’s NZ Champions of Cheese Awards, including the coveted Champion of Champions title.

Barrys Bay Traditional Cheese took home the Champion of Champions award for large cheese producers with its Aged Gouda while Mahoe Farmhouse Cheese’s Dutch-style Very Old Adam won the Champion Artisan award for the third year running.

Dutch born Jeanne Van Kuyk of Aroha Organic Goat Cheese was awarded the Champion Cheesemaker award, with the company also taking home the Champion Goat Cheese Award for its Aroha Raw Milk Rich Plain cheese. Emigrating from Holland, Van Kuyk now makes award-winning organic, specialty cheese from her own herd of goats on the family’s rural Waikato farm.

Over 430 Kiwi specialty cheeses were entered in this year’s competition, with 28 experienced New Zealand cheese connoisseurs making up the expert judging panel. Praising the quality of entrants, Australasia’s most experienced international cheese judge and renowned cheese educationalist

Russell Smith, led the judging panel.

“New Zealand cheese ranks with the best in the world, with certain styles indisputably world-class. The diversity of flavour profiles, the quality of cheese making and high presentation of the majority of cheese was fantastic. It’s incredibly encouraging to see the bar being raised each year,” says Smith.

Each cheese was examined by a technical and an aesthetic judge, and strictly graded to pre-determined gold, silver and bronze standards. This year saw a higher percentage of gold medals awarded, attesting to the increasingly high quality of cheese being made in New Zealand.

Iconic Kiwi cheese brand Kapiti was also a favourite with the judges, scooping more Champion awards than any other brand with four major trophies.

Kapiti Kikorangi once again proved New Zealanders’ affection towards blue cheese, claiming the people’s choice Champion Favourite Cheese Award for the third year running.

“That our shoppers have once again chosen Kapiti Kikorangi must surely make this fine blue cheese a new New Zealand icon,” says Foodstuffs delicatessen sales and operations

Barry Cleland (Fonterra Brands NZ) & Peter Cotton (Kiwibank)

Bob Rosevear (Mahoe Farmhouse Cheese)

manager, Anthony Joseph.

New player Dairyworks marked its introduction to the awards with a win for its Dairyworks Kids Range in the Champion Cheese Packaging Award. n

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NEW FOODSTUFFS MERCHANDISE TEAM APPOINTED

FOODSTUFFS North Island gm of retail merchandise, Baden Ngan Kee, has completed his merchandise team.

Clive Webber, with more than 25 years international merchandise experience, is the new business optimisation manager.

Sharon Cavanagh is the new grocery (edible) merchandise manager, a category manager for the past five years at Foodstuffs but with a background at The Warehouse and Woolworths. Jason King is the new merchandise manager of chilled,

CONTACTLESS PAYMENT TRIALLED

AUSTRALIAN retailer Coles is trialling a new contactless payment technology, allowing consumers to pay with their credit card using a sticker attached to their mobile phone. Coles MasterCard Pay Tag is the first consumer trial of its kind with 5,000 mobile phone tags available throughout Australia.

Currently one of the largest MasterCard PayPass retailers in the world, Coles says shoppers are looking for more convenient and time-saving ways to pay with contactless payments

04032014_NZ Trade Ad.indd 1

frozen, deli and bakery, a 22 year veteran of retail merchandising including time with Woolworths, The Warehouse and Gilmours.

Shannon Kelly is the new merchandise manager for grocery (non-edible) whose background includes Unilever, Pharmacy Brands, Radius Pharmacy and group manager grocery at Foodstuffs Wellington.

The new merchandise manager of liquor and cold beverages is Brendon Lawry who was previously national sales director at Lion. n

increasing by over 70% in the last year.

“Our customers are constantly looking for ways to simplify their lives, save time and effectively manage their finances. The new Coles Pay Tag is set to do just that,” says Coles finance director Rob Scott. n

RIBENA SALE TO SUNTORY

GLAXOSMITHKLINE has recently sold its Ribena and Lucozade brands to the Japanese Suntory Beverage & Food Company for $2.1billion. And the move has been welcomed by New Zealand blackcurrant growers who are well placed to continue supplying

JACK LINKS INTO UNILEVER AMERICAN Jack Links with its key meat snacks operation in New Zealand, is moving into the European market with plans to buy Unilever’s meat snacks business. The deal includes a manufacturing plant in Germany. The company says it is on a mission to be the world’s number one provider of branded meat snacks.

Unilever has been pruning its food portfolio of late including selling its Skippy peanut butter brand last year to Hormel Foods for $US700m. n fruit for the iconic brand. Contracts are already in place for the next couple of years. n

LITTLE US TRUST IN ORGANICS MORE than half of American consumers believe that labelling food or other products as organic is simply an excuse for companies to charge more, according to new research.

The latest Harris poll found that more Americans were concerned about the environment but it didn’t translate into willingness to buy green or organic items. Men (63%) were more skeptical of organic claims than

SMI PRESIDENT

THE New Zealand Self Medication Industry Association has elected Anish Patel, general manager of Bayer’s Consumer Care Division as president for the coming year. The SMI is the consumer healthcare products industry body. Patel replaces Adonis Souloglou, the general manager of Reckitt Benckiser who recently resigned. n

women (54%) and although they sought out green products, they were unwilling to pay more for them.

At the same time, new Australian research also backed this with 80% of consumers saying that price/value was still a major barrier to them buying organic food and nearly half of them saying they were unable to trust that the products were genuinely organic. n

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SUPERMARKET AWARD TO PnS

PAK’nSAVE has reclaimed its Supermarket of the Year title in the latest Roy Morgan Research customer satisfaction awards for 2013 just announced. The group won the title in 2011 and Countdown took it out in 2012. The research covered 12,000 shoppers and involved opinions on price, product quality, ranging and checkout service.

The Mill Liquorsave won the liquor store of the year award in a close race with Liquorland, Local Liquor, Liquor King, Super Liquor and Henry’s.

PHARMACIES ARE NEXT TARGET

WHILE New Zealand supermarkets are quietly entering the pharmacy field with a strong professional approach, there is a prediction in Australia that Coles and Woolworths will target pharmacies in a new brazen conquest.

The growing empires of the two big supermarkets there are already in a variety of businesses including insurance, petrol, liquor, clothing, data companies, office supplies, hotels, gaming and hardware.

As a result there is increasing concern amongst independent retailers about reach and market dominance.

CONFECTIONERY CONFERENCE

THE Australasian confectionery industry is meeting in Melbourne on April 30 for its key annual networking event – Contech. The event has attracted a wide range of local and international speakers.

More detail from Julie Gerrard on 0061 (3) 9867 0147.

FOOD FRAUD PREVENTION NECESSARY GLOBALISATION and food fraud are the biggest threats to food safety, says Global Food Safety Initiative (GFSI) chairman Yves Rey. Addressing FGC members in Auckland last month, Rey stressed the importance of a food fraud prevention strategy as part of food safety programmes.

“While economically motivated, adulteration is a food risk. The health risks are often more risky than the traditional food safety hazard because the contaminants are unconventional,” says Rey. With the modern supply chain spanning the globe, food fraud is difficult for manufacturers and retailers to control. According to Rey, 50% of the milk sold in India is adulterated and he is aware of a dumpling manufacturer in China substituting beef for 100% rat meat.

While food safety in China is not yet rigorously enforced, Rey predicts China will be the food leader in terms of product quality and innovation

PRODUCE EXPERT JOINS LOSCAM

WOOLWORTHS ON STAFF OBESITY

WOOLWORTHS got a less than memorable result when it asked consultants to assess the health of 900 store managers and 200 operations managers.

The results were a shock 80% of the senior staff were either overweight or obese and 31% were classified as obese.

LOW LOYALTY LEVELS IN NIELSEN REPORT

NIELSEN’S latest global survey of loyalty sentiment has shown that loyalty in the food and beverage category was low mainly caused by high levels of promotion.

The report did show a direct link between the frequency of purchase and the level of loyalty to that category. In the grocery sector, the conclusion was that consumers were more loyal to the retailer than to any brand.

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within the next 10 years.

“China is looking to implement a food safety standard that is internationally recognised and as a nation they are benchmarking everything they do against international standards.”

Rey, Corporate Quality General Manager at Danone, urged manufacturers and retailers to embrace an internationally recognised food safety standard, something the GFSI’s Guidance document aims to achieve. The Guidance document sets out requirements for food safety management schemes and defines how these requirements should be implemented, controlled and monitored, setting up a common language and international standard.

“Reduce food safety risks through third party certification, delivering a total supply chain approach from farm to table. The Guidance document specifies the minimal level of auditor knowledge and skills which improves the consistency and

LOSCAM, Asia Pacific’s leader in pallet and retail ready solutions, has appointed Hans Wouters to run its New Zealand produce solutions division.

With over 17 years in senior management roles in the local produce sector, including 10 years at the helm of the country’s largest crate and bin rental business, Hans brings a wealth of experience and knowledge in crate and bin pooling systems and familiarity with growers and markets within the produce sector.

“We are really excited to

have Hans join our growing New Zealand team. Prior to his previous role Hans helped us with our produce strategy and was enthusiastically received by the grower community through that process.

We are really excited about making the customer central to our strategy, as we have done with great success in the grocery sector,” says David Edwards, Loscam’s Head of Development.

Loscam recently announced its plans to enter the produce crate and bin sector by launching its best-inclass active lock plastic crate and rising floor bin.

Both these solutions meet the tough standards of the produce supply chain and will provide growers and retailers peace of mind and raise the performance standards in New Zealand.

“We understand from the industry that there is a need for a better performing crate that will protect produce and enable a safer working environment.

Combine this with the experience and customer focus that Hans will bring and we feel we are well on the way to giving customers a better choice in New Zealand” said Edwards. n

reliability of the audit.”

By the end of next year GFSI’s Guidance document will include food fraud prevention. “GFSI is a global organisation but consumers are local, and you cannot get consumer loyalty without food safety.”

At Danone since 2003, Rey says food safety is paramount for company sustainability and profitability and while food regulation is good, enforcement is more important.

“Food regulation in New Zealand is one of the best in the world, nonetheless the Fonterra issue highlights the need for enforcement, training and knowledge.” n

SELF SERVICE OUT OF FAVOUR? DESPITE an almost universal dislike of our customers standing in slow checkout lines, an overwhelming majority of shoppers tend to opt for cashier assisted lanes instead of self service. That came out of the latest Food Marketing Institute (FMI) research in the US. Almost 85% of customers chose a cashier to ring up their purchases even when a self service lane was available – and that included 20% of customers who picked an express lane with limited items.

Perhaps as a result, some US supermarket chains such as Albertsons, and Big Y Food (who have 61 stores) are removing self service checkouts after determining that those lanes didn’t save customer time and often took them longer, especially where customers needed to wait for staff assistance with barcodes, coupons, payment problems and other issues.

The FMI said there had been no referendum yet as to whether self service checkouts worked or not although it had been determined that demographics and basket size were important in that younger customers were more comfortable with the technology. n

A MATTER OF BALANCE OVER the past few weeks our sector has been in the spotlight and has had more media attention than many within our membership can recall.

The national discussion on television, radio, and online has served to highlight the current power imbalance between suppliers and retailers. As members are well aware, New Zealand has the most concentrated grocery retail market in the world. When two players control such a huge chunk of the market (around 95%), those selling to them are at more of a disadvantage than, say, if there were three or four players, where they would have at least a little more leverage during negotiations.

But New Zealand has just two, and so this dominant position held by both requires retailers to be mindful of how suppliers are treated. It makes sense that in any negotiation where one party seems to hold most of the key cards, special care should be taken not to engage in behaviour that could be construed as abuse or bullying.

FGC has always held the view that discussions between members and retailers should be robust, fair, and allow for an exchange of ideas between parties. No one within FGC’s membership expects grocery negotiations to be a walk in the park, but we do expect fair treatment for

our members, and for there to be a genuine negotiation and an exchange of ideas. Until recently there was a delicate balance in our market, where suppliers might grumble from time to time but generally where most understood that the sector was a tough one and so they just got on and focused on supplying groceries.

There was a definite change in the tone and style of some negotiations last year, and for some grocery suppliers it was classic case of the straw breaking the camel’s back. Some forget that in a small country of just four million people the FMCG world is even smaller. Brutal negotiation tactics such as “cliffing”, which are common in other countries, don’t work in the medium to long term in New Zealand because of the smallness of our community. Such tactics generally rely on not seeing the vanquished again, but in New Zealand that doesn’t happen, with the chances quite high of the would-be oppressor continually (and rather awkwardly) running into the would-be oppressed on the sidelines of school events, at the pub, or in other community spots.

Of course, some might not care two hoots, but generally this means to a certain degree that New Zealand’s business community is more selfregulating than others. The grocery

sector is not an easy market by any means, but proximity does knock some of the edges off. There’s also the unintended consequence of poor treatment, and that is to push suppliers to do more deals with a competitor where they believe they have a more constructive relationship.

FGC continually looks at how it might support member companies in dealing with these changing times.

This month we are are pleased to be announcing a new resource for members on negotiations, entitled “Negotiation Trading Terms in the Face of Retail Use of Power” and penned by Charles Wilson of AdvisorBase.

It covers negotiation fundamentals and a few excellent tips. Members interested in receiving a copy are welcome to contact the FGC office.

There’s likely to be something in there to perhaps knock off a few more of the edges and restore a little of the balance. n

Meet the latest addition to the

Katherine Rich CEO, New Zealand Food & Grocery Council

DRAFT LIQUOR POLICY UNDER a new draft local alcohol policy, Marlborough supermarkets and liquor outlets may be forced to stop selling liquor at 9pm. The current alcohol policy allows off-licenses to sell alcohol between 7am and 11pm, with central Blenheim stores open until 10pm on Friday and Saturday. The District Licensing Committee surveyed Marlborough residents and took into consideration an independent report

by InToto Projects before choosing the hours and conditions of the draft policy. Licensing inspector Karen Winter says the policy had yet to be debated by council staff with the hours and conditions may be changed before it is put out for public consumption from March 6 and April 2. n

ICE CREAM RECALL

THE KIWI Ice Cream Company recalled products from its Kiwi, Much Moore and Mel-O-Rich dessert brands last month after a supplied ingredient was found to have been re-packed in an unlicensed food premises. The recall affected more than 20 SKU’s, with the faulty supplied ingredient discovered during a routine internal audit by the company. n

family

Treat your customers with the new Very Berry Mentos while increasing your sales!

Contact your DKSH New Zealand Limited representative for more information. supermarketnews.co.nz

I 9

FMCG MAG SUBSCRIPTIONS HONOURED

WITH the receivership of FMCG magazine publisher Mediaweb Ltd this month, Supermarket News would be pleased to freely honour any subscription remainders to ensure news continuity to former readers.

Please contact our general manager Tania Walters (Tania@reviewmags.com) or our subscription manager Kieran Mitchell (Kieran@reviewmags.com) to be added to our distribution file.

NESTLE SALE NESTLE has sold its PowerBar and Musashi brand premium bars, powders and gels to US company Post Holdings, a St Louis based cereal maker. The Musashi products have been a leading sports nutrition brand in Australia.

FRESHNESS OF FISH TESTED

NEW packaging that helps supermarkets and consumers tell how fresh fish is has been developed in The Netherlands. The packaging uses a “built-in nose” or sensor to send information to a smartphone. Fish is a complicated product for supermarkets where even the fish from a single fishing boat can have a different shelf life.

CROSSMARK EXPANSION

AUCKLAND-based sales and marketing company Crossmark has picked up on the need for increased merchandising support and has launched a new Speed to Market division. Managing director Grant Leach said the new division now had the capability of covering more than 250 retail thresholds within a 48 hour period.

AUSSIE TOP PRODUCT AWARDS

ALDI, Coles and Woolworths dominated the food and beverage categories of last month’s Australian Product of the Year awards. Over 16,000 household shoppers were surveyed by Nielsen to determine the winners, The three retailers took out eight of the categories with their private label products. Amongst suppliers taking out awards were Simplot with Birds Eye, Kraft with Cadbury biscuits and Rinoldi Pasta with some high fibre lines.

CONCERNS OVER BEVERAGE TAXES

NEW regulatory developments in many countries are forcing the drinks industry into rethinking the ingredients and manufacturing processes used for its products. This year, France introduced a new “cola tax” for all drinks containing added sugar or sweeteners. Hungary late last year introduced a “chips tax” that also targets excessively sweet drinks and in the United States, a similar levy is under consideration.

Global experts in food safety and quality Industry Training Food Safety, Auditing Skills, HACCP Third Party Auditing and Certification Laboratory Testing Food and Environmental Talk to us today to see how we can add value to your business.

freephone 0508 00 11 22 info@asurequality.com www.asurequality.com

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INSIGHT INTO CHINA KIWI infant formula manufacturer Tenda Nutritional Foods is the first licensee to take the new inSight mark to China. The Auckland based company produces Infant Formula, Follow-up Formula and Growing Up Formula under the Tenda label and is manufactured and packaged locally.

Tenda’s managing director Toby Whyte says the inSight accreditation will result in the brand’s equity growing.

“The inSight brand gives a point of difference in the China market as it creates trust for consumers by showing transparency, integrity and safety. Customers can make informed purchase decisions in line with their values,” saysWhyte.

Developed by AsureQuality, inSight provides consumers with independent evidence of a product’s characteristics and claims. Products featuring the inSight mark can be

scanned to provide a detailed view into the integrity of the producer and properties of the product. Consumers can examine the environmental sustainability, social, ethical and animal welfare, nutrition, origin, organic status, security and food quality and safety properties of the product prior to purchase.

AsureQuality’s sales and marketing manager Mark Inglis says inSight is unique in that it will connect a product with consumer values whilst bringing product assurances into the 21st century.

“Consumer values and interests vary widely and whilst there are a large number of quality assurance standards in the food industry, there is no single mark that addresses multiple food safety and quality concerns. It’s also difficult to differentiate products at the point of sale with limited label space,” says Inglis. n

WATTIE’S PEACHES EARLY

FOR the first time in its history Wattie’s has canned peaches in January, breaking with almost 80 years of peaches not being processed until the second week in February. Hawkes Bay’s warm weather early in the summer resulted in several days of processing being brought forward to pack the product at its peak, before being canned at least a week earlier than usual.

“While the total peach crop is slightly down on the previous year, this shows how our systems are flexible enough to be able to process ahead of historic schedules. We will then pause and wait for bulk of the crop to mature,” says Hastings agricultural manager Tim Agnew. Hannah Manu, marketing manager for seasonal products, says the early canning shows Wattie’s commitment to processing fruit when it’s at the peak of its flavour. “This is why the canning from these orchards was brought forward ahead of the usual season.”

The entire crop of Wattie’s peaches is grown on the Heretaunga Plains in Hawke’s Bay. n

BLUEBIRD LAUNCHES MAXX NEW Bluebird Maxx Potato Chips are predicted to unlock Maxx sales for retailers, supported by the company’s largest ever new product marketing investment behind the Bluebird brand.

Building on the success of local market leader Bluebird, as well as positive performance of similar products overseas and the growing consumer appetite for ridged cut chips, Bluebird Maxx Potato Chips are set to deliver Maxx satisfaction for consumers and retailers alike.

Bluebird’s new Maxx chips have deeper ridges, unlocking massive flavour and crunch for the ultimate snacking experience and are offered in three bold variants – Ultimate BBQ Ribs, Hot and Spicy Chicken Wings and Crushed Salt & Vinegar.

All flavours are in new larger packs of 200g while Ultimate BBQ and Spicy Chicken Wings also come in 80g packs.

Bluebird Maxx Potato Chips will be available nationally in supermarkets, petrol and convenience stores from 31st March. There is an extensive programme of support behind the launch including television, digital advertising as well as in-store and outdoor sampling activity, backed up with in-store display activity. n

slump, falling 53% while Wesfarmers’ resource division fell 37%. n

PARMALAT LOOKS TO NZ AUSSIE dairy company Parmalat is

looking to stock its products in New Zealand, approaching Progressive for ranging. Parmalat’s range would be in direct competition to Kiwi suppliers and includes the Pauls, Ice Break, Oak and Vaalia brands. Other Australian owned dairy products have also expressed an interest in the New Zealand market. n

PROGS BOOSTS EARNINGS WOOLWORTHS has reported a 1.3% increase in profit for its Countdown business, bringing its first half earnings to $164.4 million before interest and tax. Sales were also up 2.6% to $3.02 billion, which Woolworths attributed to increased market share and customer numbers.

“We continue to increase market share, customer numbers and items sold, reflecting the relevance of our offer and success of promotional activity.

This was despite the subdued grocery market conditions, highly competitive marketplace and price deflation across a

number of key categories,” the company said in a statement. At the same time, the Woolworths group also announced a net profit growth of 5.8% to A$1.3 billion. n

COLES DRIVES PROFIT

WESFARMERS Ltd has announced an 11% rise in half yearly profits to A$1.43 billion despite its struggling Target stores and resource division.

The increase has been largely attributed to strong sales performance

by Coles, which increased earnings 11% on the previous year to A$836 million. Target’s earnings continued to

...........

CADBURY has challenged Nestle’s attempt to trademark the shape of its Kit Kat chocolate bar in the UK, with the case being referred to the European Union Court of Justice for guidance on EU law. The case comes on the back of Nestle blocking Cadbury from protecting its purple packaging in October and will be decided on whether consumers recognise the shape as being distinct to the Kit Kat brand.

In Australia this month, Dick Smith was forced to pull his OzEmite spread from shelf after losing name rights.

Intellectual Property Australia ruled the OzEmite name was too similar to yeast spread AussieMite. n

www.superjuice.co.nz

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I 11

WEET-BIX APP VILLA MARIA BUYS VINEYARD

VILLA Maria has bought a 41 hectare property on Hawkes Bay’s Gimblett Gravels previously owned

by Pask Winery, a company that had previously supplied its surplus grapes to Villa Maria. The company is now the largest landholder in the Gimblett Gravels district that is producing some of the world’s finest full bodied red wines.

CUSTOMERS BACK OFF CASH

AUSTRALIA, with New Zealand not far behind, has become the first country in the Asia Pacific region and the sixth globally to shift predominantly from cash with 86% of consumer payments across the ditch now being cashless.

Cash transactions in Australia now total less than 15% compared with 20% in the US. One reason given is that 99% of Australians over 15 possess bank accounts and most people now leave home without any cash.

THAI PROBLEMS

THREE major retailers in Thailand have reached an agreement with the Commerce Ministry to freeze or reduce prices of more than 2000 consumer foods until the end of the year. Tesco Lotus, Big C Supercentre and Siam Makro were all called on to sign the agreement to help halt rising living costs.

SA PRODUCT DOWNSIZING

A MAJOR campaign has been launched in South Africa against product downsizing. Suppliers and retailers have been warned by consumer groups that the reduction in size and less quantity in packaging with no price reductions is not being taken lightly. The argument that the reductions were introduced in response to a demand from consumers for more affordable sizes was rejected – if that were the case, suppliers would promote the reduced size explicitly which they were not doing.

ONLINE GROCERY IN AUSTRALIA

A LIMITED selection online grocery business set up in Australia has told consumers they could save up to 50% on their regular shopping bills by using the service. The company – groceryrun.com.au – is a daily deals operation run by CatchoftheDay and promotes around 300 discounted products on a limited 48 hours a week. Their programme is intended to catch the Woolworths and Coles customer.

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SANITARIUM’S Weet-Bix brand has launched an innovative new loyalty programme targeted at teens and young adults. Bix allows consumers to earn rewards by scanning the QR code on specially marked Weet-Bix packs, which can then be redeemed for vouchers, product, unique experiences and competition entries with Hoyts, Sony, Amazon, Avanti, 2XU and Jetts.

The QR code can be scanned once a day, an unlimited number of times.

Weet-bix senior brand manager Jessica Manihera says Bix reaches the youth audience through channels that are relevant to them and rewards them with things they love.

“It’s an incentive for Kiwi kids to get the Weet-Bix box out of the pantry every morning. If we can get this layer of consumers to eat Weet-Bix, not only are we helping mum get something wholesome into their kids every

morning, we’re increasing the number of packs a household is consuming,” says Manihera.

Three TVCs featuring brand ambassadors Wellington Phoenix player Tyler Boyd, surfer Ella Williams and snowboarder Carlos GarciaKnight will raise awareness of the Bix programme. Bix will also supported

FOODSTUFFS’ FIFTH FUEL SITE FOODSTUFFS South Island has opened its fifth self-service fuel site at Timaru’s Evans Street Pak’nSave, joining those already on offer at Pak’nSave stores in Invercargill, Moorhouse, Dunedin and Blenheim.

Foodstuffs South Island chief executive Steve Anderson says the group is continuing to investigate other options for combining fuel sites with its Pak’nSave stores given the convenience it offers customers.

“Petrol is a big weekly cost and we’re focused on providing customers with discounts on fuel whenever they go through the check-outs. We also work hard with our relationship with Mobil to deliver petrol discounts regularly.

We have deliberately chosen locations

EXCLUSIVE CIDERS REDWOOD Cellars has added to its Rekorderlig range with the launch of ElderflowerLime and Raspberry-Lime variants.

The new cider flavours are exclusive to the New Zealand market and will join Rekorderlig Premium Apple and Premium Pear in stores.

Raspberry-Lime is a slightly tangier version than popular foodservice flavour Strawberry-Lime while Elderflower-Lime is likely to appeal to Kiwi consumers.

Rekorderlig cider is offered in 500ml bottles with a 4% abv. n

on State Highway 1 to make them easy to find and access and so far this approach is working very well.”

Pak’nSave Timaru owner/operator Jason Williams says he’s delighted to be able to offer locals and visitors another fuel option, with the fuel site open from 7am until 9pm.

“Feedback so far from customers using our fuel sites is that they appreciate being able to fill up with petrol at the same time as getting their groceries. We also made a big investment in ensuring our staff are trained to assist customers through an intercom if they need help and it appears to be paying off with most customers finding the new pumps extremely easy to use.” n

by outdoor, digital and in-store communication and packaging.

Operating on smartphones in the form of an App, a website and a mobile site, the Bix promotion will run until late July with QR codes on the back of all specially marked 1kg, 750g, 375g and new 1.2kg Weet-Bix packs. n

COOKIE TIME IN JAPAN KIWI biscuit manufacturer Cookie Time has opened its first overseas venture in the upmarket shopping district of Harajuku in Tokyo. It is the second retail outlet for the Christchurch based company, with the first being opened in Queenstown in 2010. Japanese supermarket and frozen food operator IceCo is running the Tokyo store under an exclusive license and has plans to open two more outlets within the next year. Frozen Cookie Time dough is being exported to the Cookie Muncher Cookie Bar for baking, with the concept being well received since its soft launch in December. Cookie Time’s general manager Lincoln Booth says the Cookie Muncher character has resonated with Japanese consumers.

“The Japanese tend to gravitate towards unique characters – the Hello Kitty is an example of that and the Cookie Muncher certainly reaches out into that same retail space.”

Retail licensing deals in Malaysia and Thailand are currently being negotiated. n

TICKETS ON SALE

TICKETS for The Chocolate and Coffee Show, being held in Auckland on the third and fourth of May are now available to the public via Eventfinda.

Visitors can expect a delicious lineup of exhibitors including Schoc Chocolates, Karajoz Coffee Company, Makana Confections, Devonport Chocolates and Petal Cupcakes.

Show organiser, Keith Sharp, says there will be a fantastic range of independent artisan chocolate and coffee producers, well known brands and the opportunity to see expert chocolatiers and baristas in action.

For more information or to purchase tickets visit www.eventfinder.co.nz n

SIGNIFICANT EMPLOYMENT LAW CHANGES EXPECTED THIS YEAR SURVEY after survey tells us that one of the major challenges facing New Zealand businesses, particularly small and medium businesses like stores, is our employment law framework. It is hugely complicated, changes frequently and often places more emphasis on process rather than substance. While the National-led Government has said it is committed to simplifying the legislation – which should be welcomed by industry – the changes are continuing at a brisk pace.

2014 will bring in another tranche of changes to the employment law landscape. Some amendments have already been passed while others are expected to be approved and implemented before the election (likely in October or November).

Here is a brief summary about what to expect. Stores should ensure they comply fully with the new legislation which may involve changing longstanding practices.

Flexible work arrangements will be greatly expanded. Currently, only employees who have responsibility for the care of another person and who have worked for six months continuously are able to request flexible working arrangements.

Flexible working arrangements are subject to the employer’s approval.

Clearly, the current system excludes pretty much everyone in the retail grocery sector. It is more targeted at the healthcare industry.

The Government will now give all employees the right to ask for flexible working arrangement regardless of whether they are caring for another or have worked for six months continuously. In other words, pretty much everyone can ask.

NARGON would encourage owners and employers to be as reasonable as possible given the individual circumstances of stores. Obviously, in sole charge or small stores fully flexible arrangements will not always be possible. The trick is to find an arrangement which works for employers, employees and, of course, customers.

Another area where flexibility is important is rest and meal breaks.

The rules regarding breaks changed a few years ago but, following feedback from business, the rules will be significantly overhauled to make them more flexible and less restrictive. Currently, employers are required to provide employees with rest and meal breaks for specified durations and at mandated times. This might work in an office environment or big retail operator with lots of staff, but they can pose

problems for small stores which are open long hours and often busiest at traditional lunch and tea times.

As a result, the Government is doing away with the prescriptions and leaving it to the parties involved to negotiate what they consider to be reasonable and necessary.

Again, it is about talking issues and expectations through and coming up with a workable system. Flexibility on both sides will go a long way.

NARGON believes this is a sensible change given the diverse nature of Kiwi businesses. One-size-fits-all solutions rarely work, particularly in our industry.

One of the key concepts of the current employment relations system is the sometimes nebulous concept of “good faith”. Restructuring a business is always complicated. A recent court case (Massey University v Wrigley) found that employers have to disclose extensive information to potentially affected employees, including information that could identify other employees.

The Government decided that the Massey decision went too far and has introduced changes to pull the law back. While employees will still be entitled to information, employers will not have to provide information about identifiable

individuals, evaluative or opinion material, and other information that is subject to confidentiality or privacy. Employers need to tread very carefully when making any decisions or changes which will affect people’s employment.

Additionally, the Government has scrapped the requirement that all new employees be given the terms and conditions of any applicable collective agreement for the first 30 days of their employment.

Owners and employers should be fully informed and prepared for all the generally sensible changes.

DISCLAIMER: While NARGON has made every effort to ensure the information in this column is accurate, it is not legal advice and does not replace legal advice.

Stores should consult their lawyers before making significant decisions regarding the application of the new and proposed legislation. n

Trina Snow Executive Director NARGON

At Cowley Services we provide end-to-end refrigeration solutions, from design, equipment supply and installation to servicing and maintenance. We offer a range of standalone refrigeration cases and cabinets sourced from quality suppliers at highly competitive prices.

Alternatively, we are also able to create a bespoke design and build a custom refrigeration system tailored to the needs of your business.

Contact us today on 0508 232 1338 for a no-obligation quote or visit us at www.cowleyservices.co.nz for more information.

supermarketnews.co.nz

I 13

CARDINAL OPENS 3PL FACILITY

CARDINAL Logistics has opened a state of the art warehousing facility in Auckland’s Wiri, with biscuit manufacturer Griffins the key customer at the site. The 27,600 sqm building is equivalent to five rugby fields and has the capacity to hold 44,500 standard 1.5 metre high pallets.

Formally opened by Prime Minister John

Key, the Nesdale Avenue facility features a semi automatic racking system, energy saving LED lighting, fully integrated scan pick replenishment and reverse docks to accommodate export and import loading and unloading. Designed to accommodate moving a high volume of product, Cardinal founder Tony Gorton (pictured above with

John Key) predicts more than 4000 containers will move in and out of the site each year. In business for 22 years, Cardinal specialises in the warehousing and nationwide distribution of FMCG products and has grown significantly in recent years. Employing over 300 full time staff, the new building joins another 30,000 sqm property in Mangere, a branch in Christchurch and a small operation in Palmerston North.

Cardinal invested in the new custom-built facility after winning Griffins warehouse tender in 2012, requiring storage of domestic and export product, a repack facility and the ability to store and distribute raw materials.

Red Bull and Nuplex Ingredients are also storing and distributing product from the warehouse. n

COST-SAVING WASTE SOLUTIONS

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

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MIL-TEK is one of New Zealand’s best known and respected waste management solution providers, with a professional and experienced sales and servicing team located throughout the country.

Delivering waste solutions since 2003, the company has extensive experience in providing clean, efficient and green solutions through the deployment of its highly engineered and unique products.

Manufactured in Denmark and part of a global network in 31 different countries, the Mil-tek product range allows customers to control the cost of their waste and the profit from recyclables.

“Waste is an ever increasing cost and to control that cost you have to implement better systems to manage it more effectively,” says managing director Rod Enoka.

Petone Pak ‘n Save owner Leo O’Sullivan invested in Mil-tek’s waste solutions in 2012 and says he quickly noticed the cost savings.

“The store waste and recycling costs shrunk from $28,000 per annum to a profit of $58,000, which was a $86,000 turn around and is still increasing,” says O’Sullivan.

Available for lease, rent or purchase, Mil-tek’s solutions reduce waste handling costs, improve

ROD AND BEV ENOKA

internal logistics, save space and are beneficial to the environment.

“Mil-tek’s unique range of compacters can be placed within any work environment and deal with waste at source and have already proven popular within bakery and butchery departments in stores,” says Enoka.

While waste is a by-product for most businesses, balers make waste more manageable, allowing companies to quantify volume

and record it more efficiently to maximise rebates and manage these costs.

“Baled format has a value to it compared with cage format where someone else collects and bales it for a revenueable return.

As with everything in life, nothing is free and the ever increasing price of disposal and transportation is something businesses need to think about,” says Enoka. n

supermarketnews.co.nz

I 15

storecheck This month our mystery shopper visited central Auckland stores with New World College Hill a standout. The two metro stores offered a vast

COUNTDOWN QUAY ST

On a warm late summer day, we headed for inner city Auckland.

First up was the Countdown on Quay St. First impressions weren’t great as the carpark was littered with rubbish, the lino on the stairs was cracked and the posters in the foyer were tatty. There were quite a few stray trundlers dotted around too. There was a good range of nice fresh produce, but the lighting in that area was poor. The fish section was poorly stocked and the meat section had plenty of gaps. The shelves were all well faced with good ticketing. The aisles were all neat and tidy and the fridges were notable for the excellent lighting making the product really stand out. A quick exit through the self checkouts and I was done. A good sized store with an excellent range.

NW METRO, QUEEN ST

Next up, Queen St and a visit to the small New World Metro. Not sure what to expect, I was pleasantly surprised by this small but well stocked store. Even though it was clearly much smaller, it still felt like it had everything you would need. What made you realise this store was targeting a different style of shopper was the large range of sandwiches, rolls, fruit salad snacks and other lunch options that were available.

There were lots of checkouts open in this nicely lit store. The empty store at the entrance was a bit disappointing as it made the area look unused.

COUNTDOWN METRO VICTORIA ST

Further up we went into the Countdown Metro on Victoria St. Initially I thought it didn’t have the same tidy feel as New World Queen St. But it too had an excellent selection of sandwiches, rolls, sushi and other lunch options.

Neither store had trundlers which is probably because the customers are on foot and not able to carry much, however, maybe having those small trundlers that use the carry baskets might be helpful. The layout was wide and open especially in the fresh produce area. The fresh seafood was noticeably out of stock. The beer fridge was a large walk-in style and the lighting in the beer/wine area was very good. Whilst there were lots of self service kiosks open there was only one person serving which was not enough.

NW COLLEGE HILL

Lastly we checked out the New World at the bottom of College Hill, in Freemans Bay. The carpark was very dim and poorly lit, but we got a park easily enough. Walking up the ramp we entered a wide open atrium style area that was bright and airy. We could easily see the whole supermarket had a nice light, airy feel. Passing through the fresh produce area I couldn’t help but notice the way the lighting made the fresh produce stand out and look fresh and appealing. An interesting feature was the meat fridge with choice cuts of meat beside the fresh produce. Moving through the wine

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STORE EXTERIOR

CD Quay St

NW Metro CD Metro NW Queen St Victoria St College Hill

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

2

3

4

4

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

3

3

4

4

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

4

4

4

5

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

4

5

5

2

STORE INTERIOR

CD Quay St

NW Metro CD Metro NW Queen St Victoria St College Hill

• Were your first impressions positive?

(5 pts.)

3

4

4

5

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

5

5

4

5

• Adequately lighting/heating? (5 pts.)

4

5

4

5

• Instore signage clear adequate?

(5 pts.)

4

5

4

5

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

5

5

5

5

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

5

5

5

5

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

5

5

5

5

STORE LAYOUT

CD Quay St

NW Metro CD Metro NW Queen St Victoria St College Hill

• Were the aisles wide enough?

(5 pts.)

5

5

3

5

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

5

5

4

5

• Were all shelves clean, neat and tidy?

(5 pts.)

5

5

4

5

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

3

3

3

5

PRODUCTS

CD Quay St

NW Metro CD Metro NW Queen St Victoria St College Hill

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

5

5

4

5

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

4

5

4

5

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

5

5

4

5

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

5

5

5

5

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

5

5

4

5

array of lunch options for the surrounding businesses and good lighting went a long way to lifting store appeal. section, again the superb lighting ensured the wide range really stood out and you couldn’t miss the extensive range of boutique and craft beers as well. All the aisles were well stocked and faced with good signage. Quite a few aisles had staff restocking the shelves but no trundlers or product was unattended. The fresh meat and seafood areas were quite simply outstanding, with a wide range of cuts beautifully presented. The bakery was excellent with a wide range of products on display. The deli section was stunning with a superb range of salads and the range of sandwiches, rolls and buns for lunch options was terrific. It even had a Mexican stand for fresh taco’s. On leaving there were plenty of checkouts open and lots of self service kiosks too. The whole experience in this store was overwhelmingly good. So good in fact that it begs the question….is this NZ’s best supermarket?

STAFF

CD Quay St

NW Metro CD Metro NW Queen St Victoria St College Hill

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

5

5

4

5

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

3

4

3

5

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

5

5

5

5

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

5

5

5

5

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

5

5

5

5

FRESH FOOD

CD Quay St

NW Metro CD Metro NW Queen St Victoria St College Hill

• Did the produce look fresh?

PRODUCE (5 pts.)

4

4

4

5

FISH (5 pts.)

4

4

4

5

MEAT (5 pts.)

4

4

4

5

DELI (5 pts.)

4

4

4

5

BAKERY (5 pts.)

4

4

4

5

PRODUCE (5 pts.)

5

4

4

5

FISH (5 pts.)

4

4

1

5

MEAT (5 pts.)

3

4

3

5

DELI (5 pts.)

4

4

4

5

BAKERY (5 pts.)

4

4

4

5

• Was there a full range of produce?

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

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

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

4 4 4 5

• Overall shopper experience (10 pts.) 8

HOW THEY SCORE?

CD Quay St

8

7

10

NW Metro CD Metro NW Queen St Victoria St College Hill

Maximum available score: 200 pts 171 178 162 195

TOP SCORE

supermarketnews.co.nz

I 17

hotbeverages&soups NEW WATTIE’S FLAVOURS

THE significant market leader in ambient soup, Wattie’s has a 77% value share of the $24.7m segment across both ready to serve and condensed formats. (ACNielsen MAT 26/01/14) Two new products will join the company’s Soup of the Day sub-brand this month with the launch of Spanish Style Chicken and Thai Style Chicken in single serve pouches.

“These new flavours complement the current range and drive modernity, being at the forefront of flavour trends. Marketing support for winter 2014 will continue to drive trial for Soup of the Day and be re-enforced with in-store activation,” says senior soup brand manager Anne Lindsay.

Launched last year, the Soup of the Day range attracted new users back into the ready to serve segment with its innovative foil fresh pouch packaging

locking in flavours without the need for preservatives.

Wattie’s instant soup sub-brand Squeeze & Stir will also be extended with two new variants Creamy Chicken and Chicken & Sweetcorn being released.

Conveniently packaged in a 70g single-serve sachet, Lindsay says the success of Squeeze & Stir highlights that consumers are planning for healthy snacks. “Squeeze & Stir instant soups deliver on both the taste and goodness of a real soup with the benefit of no preservatives,” says Lindsay. n

KING MOVES TO WILSON

HANSELLS’ NEW SOUP

WILSON Foods Limited has acquired soup brand King under license from Hansells Food Group.

King soup mix has been on Kiwi shelves for more than 50 years and includes Vegetable, Hearty Vegetable, Country Chicken, Minestrone, and Pea & Ham variants. “Wilson is delighted by the opportunity to take the King brand forward with the support of our national sales and merchandising network. This will complement the existing Wilson portfolio of wellknown brands such as Diamond, DYC, Guylian and Hersheys” says grocery business manager Simon Gray. King will move to Wilson on the 1st of April with both Wilson and Hansells working closely together to ensure a seamless transition for retailers. n

FOLLOWING the successful launch of Hansells all natural soup pouches last year, the company has introduced a Thai Pumpkin offering.

Dairy and gluten free, the new addition will contain traditional Thai flavours of coconut, lemongrass and galangal.

Hansells all natural pouch soups have been very well received as the range offers the convenience of shelf stable with no preservatives and 100% natural ingredients.

Other flavours in the range include Chinese Chicken & Corn, Moroccan Vegetable Tagine, and Japanese Miso. n

LATINA FRESH JOINS CATEGORY GENERAL MILLS’ Latina Fresh brand entered the soup category this month with a line of chilled single serve soups. Offered in 300g pots the range contains four variants – Pumpkin & Parmesan, Chicken, Corn & Noodle, Tomato & Basil Pesto and Mushroom & Thyme – which are microwavable and can be eaten straight from the pot.

“It will be our first foray into chilled soup and we believe we have a strong offering to set us apart in the market. Our core business has been in fresh pasta and pasta sauce but we felt there was a strong consumer need not being answered in soup,” says

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March 2014

brand manager Brad Tilby.

Tilby says the current chilled soup range only caters for two – with no single serve, lunchtime offering. Within the Australian market the 300g pot makes up the majority of the soup category sales.

Based on the overseas markets, Tilby believes growth will come from the single serve offering and space grown outside the traditional chiller area.

“Looking to the future, we believe future growth in the category will come through packaging innovation and premiumisation vs flavour extension as seen over the last few years.” n

TV CAMPAIGN DRIVING SALES THE SPECIALTY tea category is growing steadily at 7.2% (MAT) as consumers switch from black tea in favour of healthier beverages. Green and herbal teas are the growth drivers with fruit teas showing slight decline in the past six months. Red Seal has been one of the key brands in driving this growth with a successful TV campaign last year.

“Following on from the launch of our new packaging and new flavours combining peppermint and lemon in both herbal and green teas, the TV advertising has driven brand trial and loyalty.

Part of our strength is that we offer healthier options in a number of categories with particularly strong interaction across supplements and teas,” says sales and marketing manager Sue Millinchip.

The 100% NZ owned and operated company is putting more resources into supporting this message, something that resonates with retailers and consumers alike.

Millinchip predicts company growth will continue as television advertising recommences this month with sponsorship of the programme “One man and his campervan” on Prime and continues through to June with advertising on all core channels.

Strong brand blocking in-store has delivered fantastic results for both total category and Red Seal sales.

Some variants have had particularly strong sales; the growth in Alpine tea may reflect the concerns of the ageing population with digestive health, Sweet Dreams’ increase is influenced by the stress and sleep concerns felt by many, Red Bush Chai and Black Adder have also grown, demonstrating a desire for different flavours and healthier beverages.

Peppermint Lemon, as both a herbal and green variant, has delivered incremental sales. This category is a key one for Red Seal and will see continued investment by the brand. n

MORE SALES in

EVERY PACK Following last year’s hugely impactful advertising campaign, more and more people are making Red Seal their brand of choice in the toothpaste, tea and supplement categories. As a result, Red Seal have experienced strong market share growth in each.

This growth is set to continue with: More TV advertising

TV programme sponsorship

starting March 9

‘One Man and His Campervan’

More exciting NPD

Not only will stocking Red Seal products help you achieve your sales targets, it will help your customers to live their best life.

*Aztec 26 weeks to 26/01/14, year on year growth.

www.redseal.co.nz supermarketnews.co.nz 19

I

hotbeverages&soups GREEN TEA GROWTH

DILMAH currently has 43 SKU`s in the NZ market across the hot tea category including black mainstream, black specialty, green, fruit and herbal infusions. In the coming months the premium tea brand will expand its range in the green tea and specialty black segments and are looking to increase its infusion segment offering.

Dilmah’s Nigel Scott says despite the total market being relatively flat, the $77m MAT value category is experiencing growth within the green and infusion

SOUP EXTENSIONS

DELMAINE has added two new flavours to its 600g range of fresh pouch soups with the launch of Old Fashioned Vegetable and Mexican Three Bean.

The new variants will join the company’s existing offering of Pumpkin, Seafood Chowder, Chicken Chowder, Red Pepper, Bacon & Lentil and Creamy Mushroom.

Delmaine’s group product manager Micheal Bennett says the core of soups is still stable as far as the basic block of pumpkin, seafood and chicken goes, but category growth is being driven by innovation.

segments. “We are seeing consumers being prepared to trial other types and flavours of teas outside of their norm. However, in NZ our consumers are definitely making purchases based on promotional prices as currently the tea category tends to have a major brand on promotion just about on a weekly basis,” says Scott.

While mainstream black remains the largest segment, Scott believes green tea will continue to grow as people move towards a more health fashioned lifestyle. Some international markets are also seeing growth from premium black flavoured teas. “Black and green tea are both derived from the same plant and as such contain very similar benefits, therefore from our position we are very keen to keep driving the black tea segment.”

The Dilmah brand has been in the Kiwi market since 1991 and has maintained its status as a premium brand. Through this constant positioning it has been able to claim the number one spot for the total tea market (TKA – AZTEC - MAT to 26/1/14 @ 22.8%). n “Last year good growth was achieved by vegetable varieties particularly mushroom and kumara and flavour change outs. Ranges overseas are much larger with longer and colder winters and there is a much greater emphasis on trying new and interesting products. Over the last few years this trend does appear to be growing here as well,” says Bennett.

The soup category had an excellent season last year with both winter quarters being up on the previous year in both units and dollars. Bennett predicts the use of ethnic flavours as a twist for popular soups is likely to continue and that retailers should expect to see alternative ingredients. n

SCARBOROUGH FAIR SOLD ORGANIC and Fairtrade tea, coffee and hot chocolate distributor Scarborough Fair is predicted to reap major benefits from its sale to listed Cooks Global Foods.

Cooks owns the Esquires Coffee Houses brand, system and master franchises in a range of international markets, and has recently embarked on a calculated growth strategy.

Chairman Keith Jackson says the purchase of the business and assets of Scarborough Fair is based on generating strong synergies within the group. “We see there are opportunities to achieve a range of benefits through common supply sources and to leverage those for the benefit of the wider group,” says Jackson.

FROM LEFT: STUART DEEKS, KEITH JACKSON, LEWIS DEEKS, COOKS Scarborough Fair general GLOBAL FOOD GROUP manager Nick Thorpe says the international markets and ongoing negotiations are sale is a big opportunity for the company and its currently underway to secure further expansion. passionate commitment to ensuring growers get a “We’re well positioned in very lucrative coffee fair deal fits with the Esquires philosophy. markets and have a unique position with our “There’s going to be a little bit of New Zealand Fairtrade and organic offering which is only boosted worldwide that reflects our philosophy of being the by the Scarborough Fair purchase,” says Cooks kind of place that makes the world a better place,” director business development Stuart Deeks. n he says. Esquires currently has 64 stores in seven

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March 2014

SUPER PREMIUM COFFEE HAVANA Coffee Works has been in the category for the past seven years with its fresh and ground super premium coffee blends marketed under the Havana Coffee Works, 5-Star, Revolucion, Organic and X-blend brands. Founded in 1989 by Tim Rose and Geoff Marsland, Havana Coffee Works has more than 20 years experience in the roasting business with its beans hot air roasted and offered blended or by country of origin.

Grocery coordinator Adam Walker says the growth of whole bean sales can be attributed to New Zealanders becoming more particular about their coffee and investing in grinders.

Walker believes demand for super premium coffee is on the rise and offers benefits for retailers. “We bring value to the category as we have a super premium product that can retail at a higher rate,” he says. n

NEW LOGO FOR BELL THE BELL Tea and Coffee Company has updated its packaging across its Bell tea range with the iconic red box featuring a new logo. The new look packaging will be rolling out across the whole range, including the new fruit and herbal infusions which have been well received by retailers. BTCC also represents Twinings, Gravity and Jeds in the hot beverages category with Gravity coffee also receiving a packaging makeover. Its bold new look gives great stand out on shelf and coincides with the launch of three new products, including a strong new blend called Fully Charged.

“NZ consumers are very clear that they want their coffee to deliver a strong, bold taste, so we are responding to that very clear need,” says marketing manager Jessica Ambler. BTCC’s newest brand, Jed’s Coffee Co is also performing well and is the fastest growing Roast and Ground coffee brand in New Zealand. The brand has recently added a stronger blend, Jed’s 5, and introduced a range of freeze dried jars and refills in response to consumer demand.

Convenience remains a strong motivator and BTCC has launched two new capsule ranges in the emerging single serve market – Café Royale and Café Pronto. “The new fresh coffee/freeze dried blends that burst onto the UK market a couple of years ago and are now appearing here and we’re also seeing the explosion of the single serve market,” says Ambler.

Ambler predicts future growth will come from innovation and premiumisation, with consumers willing to spend more to try new things.

“There’s only so much tea and coffee people can drink, so growth will come from new ways to prepare and serve hot beverages.” n

NAKED’S NEW PRODUCTS

DRIVEN by the success of its fresh soup and meal lines, Naked Cuisine is a uniquely Kiwi brand growing 39.3% in the last 12 months.

With nine soup variants in the market, the LHF brand has launched two more this season with Cambridge Spinach & Kale and Ruapehu Roasted Parsnip joining the Naked Locals line.

Naked Locals has grown incrementally since launching in 2010 and is the number two ranked brand with a 21.3% share of the fresh soups category, showing 17.2% growth in the past year.

“Our new Locals soups coming out this season are again made with produce from New Zealand farms in regions well-known for these key ingredients,” says brand manager Hannah Smith.

The Naked Kitchen meal range is also being expanded with three new variants -Malaysian Laksa, North Indian Pea, Paneer & Potato Dahl and Thai Massaman Curry – added in time for winter. Since its launch in 2012, Naked Kitchen meals have shown outstanding growth of 114.8% and accounts for a 22.2% share of the fresh meals category.

“Our new Kitchen meals coming out this season provide more enticing international flavours of the world. These great new variants are not only going to excite your taste buds but also grow your category this winter,” says Smith.

(Aztec Data MAT 19.02.2014) n

MAGGI LOOK IN A bid to communicate the versatility of the product and significantly increase appeal, Maggi has unveiled new look packaging for its packet soup range. The Nestle brand’s unique packet soup offering can be used to flavour meals and create dips, in particular The Original Kiwi Dip. In the instant soup segment, Maggi’s top six Soup for A Cup variants experienced growth last year despite overall category decline.

Nestle Category Manager Jason Biggs says this decline was driven by instant and canned soup and can be attributed to the unseasonably warm weather. “There is a direct relationship between soup consumption and temperature, in fact, last year was New Zealand’s second warmest winter on record,” says Biggs. While lunch remains the most common occasion for instant soup, the category remains strongly traditional in its flavour combinations with Cream of Chicken the number one soup variant.

Biggs believes the introduction of pouch products is behind the strong growth in chilled soups and will likely result in a continued shift from canned formats to pouch as shoppers look to fresher ingredients.

“Future growth will continue to come from the fresh soup segment, however, convenience and portability still plays a key role in the soup category and this is one area where instant soup comes into its own.” n

supermarketnews.co.nz

I 21

NATVIA GROWTH THE success of the Natvia brand can be attributed to the right combination of sales resource, unique product and above the line investment, says Acorn Group sales and marketing director James Norris.

The 100% natural sweetener has enjoyed fast, consistent growth since its launch in November 2012, with the product successfully filling a gap in the market. Natvia director Sam

$100K TO DRIVE EXPORT NEW ZEALAND health food brand Clean Paleo is aiming to raise $100,000 using crowd-funding site www.indiegogo.com to assist in exporting its range into the Australian, American and European markets.

Owned and managed by New Zealand cricketer Mitchell McClenaghan and Ryan Kamins, the Clean Paleo range is based on the Paleo diet, frequently referred to as the caveman diet for its predominately wild plant and animal food plan.

The brand’s first product was launched in 2012 with the range expanding to include Natural Biltong, Original Crunch Cereal,

22

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March 2014

Fruit Fusion Cereal, Native Vanilla Protein, Exotic Mocha Protein and Island Mango Protein. The proteins use free range egg white as an ingredient, a first for NZ. Currently stocked in Farro Fresh and Huckleberry Farms, Clean Paleo is aiming to break into the American market in the next 12 months.

“The funds we raise will give us the best chance. America has 314 million people, if we can get our brand into even a handful of stores we will be set to expand to deliver even more great products to New Zealand consumers,” says Ryan Kamins. n

Tew says Acorn Group exceeded expectations, delivering results but also the attitude and passion which they were looking for.

“600% growth and 80% distribution within two months, we are absolutely delighted with our move to Acorn Group. It is a unique company and a partnership which I will cherish for many years to come,” says Tew. Acorn has recently launched the GoodnessMe brand, which has eventuated from consumer insights and identification of market gaps.

“Consumer research exposed the need for a higher quality, genuine fruit snack offering for the lunchbox, and market research exposed the need for a supplier to offer a solution that would add value to the category,” says Norris.

Acorn will be launching Natvia’s next generation of natural sweeteners and sugar free products in the coming months, which include world firsts. n

h&baisle OLAY’S CC CREAM

LYNX ADDS PEACE

UNILEVER has expanded its Lynx deodorant range with the launch of Lynx Peace.

Formulated by world-class fragrance house Firmenich, Lynx Peace is available in bodyspray, roll on deodorant, antiperspirant invisible solid, and shower gel variants.

Firmenich fragrance consultant Ann Gottlieb is the ‘nose’ behind Unilever fragrances and has designed Lynx Peace to be an intriguing, fresh fragrance with a warm, masculine edge. It features bergamot, mandarin, lemon peel, and cedarwood notes.

PROCTOR & Gamble has launched Olay Regenerist CC Cream - the first complexion corrector to blend three powerful formulas which work to perfect complexion, fight the look of wrinkles and reduce the appearance of dark spots for even and younger looking skin.

Featuring a unique, lightweight and fragrance free formula, Olay’s new CC cream delivers complexion correction instantly and over time with a three-phase approach consisting of an energizing serum, sheer foundation and SPF15 moisturiser. Olay Regenerist CC Cream is offered in light and medium shades.

a smoother, more even skin tone and is offered in fair to light and light to medium shades.

Satin Finish Lotion combines the hydration of a lotion with the lightweight feel of a gel while Shine Minimising Cleanser lifts away impurities for a deep clean that reduces shine.

Exfoliating Cleanser features foaming bubbles and exfoliating micro beads to provide a healthy glowing look.

Powdered Contour Cleansing System is an ingeniously designed power brush to get around face contours like the T-zone, hairline and nose for a 400% better clean compared to basic cleansing. n

P&G’S FRESH EFFECTS

REXONA GROWS RANGE

P&G HAS added to its world number one facial skincare brand, Olay, with the release of a fun and vibrant skincare line designed to meet the needs of the millennial generation. The Fresh Effects collection consists of six lightweight, oilfree products with citrus extracts to awaken and refresh tired skin while flower essences hydrate and nourish skin throughout the day.

The line’s BB Cream provides breathable 24 hour hydration with a splash of sheer colour for

REXONA has added to its men’s deodorant range with the launch of Invisible Ice anti-perspirant. The Unilever brand’s newest offering features a patented formulation with Micro-Crystal technology for white mark control and 48 hour protection.

BIO-OIL IS BACK ON TV ®

4 week TV campaign starts 23 March.

Bio-Oil is STILL New Zealand’s No.1 selling scar and stretch mark product.* It is also a multi use product that is not affected by seasonal fluctuations so provides year round category growth within skincare.

BE PREPARED, FILL YOUR SHELVES WITH BIO-OIL NOW!

1 million

$

marketing investment in media and in-store support for 2014

Talk to your BDM Grange Area Manager today. 0800 804 711 *Aztec Data, MAT, 29/12/13

supermarketnews.co.nz

I 23

NEW NEW SEASONED NORI IMPORTER Oriental Merchant has launched Kwangchung Seasoned Nori, an all natural snack with no artificial additives or preservatives. Popular in the

NOSH GROWS WAITROSE LINES UK BRAND Waitrose is increasing its presence in New Zealand with an expanded offering available in Nosh stores. The new lines will include more products from Michelin starred chef Heston Blumenthal, Waitrose Baby, Love Life, Duchy Originals as well as a larger selection of Waitrose Cooks’ Ingredients range.

Nosh CEO Hayden Syers says the premium brand’s product range

represents a great opportunity for both Nosh and its customers. “Waitrose’s brand values perfectly mirror those of Nosh. Waitrose people are known to be passionate about food and they source and stock only the very best. This is why we’ve decided to expand this great partnership,” says Syers. n

PITANGO’S NEW SOUP

PITANGO has added to its soup offering with the release of Pea & Ham soup in a 600g pouch. A thick and vibrantly coloured soup made with sweet green peas and free-farmed naturally cured manuka smoked ham, Pitango’s new variant serves two and is gluten free and 97% fat free. Using high quality natural ingredients, Pitango’s soups are manufactured in small batches to maintain a home made taste and quality with no added sugar, additives or preservatives used. n

Asian market, Kwangchung Seasoned Nori is made with seaweed, corn oil, sesame oil and salt and is gaining a strong Kiwi following. n

MUPPETS BUTTER CREAM ICING PROMO QUEEN Fine Food has increased its baking offering with the release of Butter Cream Icing under its Queen’s label. Convenient and easy to use, Queen’s new icing can be used as a spread over cakes and cupcakes or as the filling in a layer cake. The butter cream icing is suitable for use in all kinds of piping bags and can be used in conjunction with the brand’s food colours. n

TO coincide with the cinema release of Muppets Most Wanted, Henergy Eggs has launched a Muppets onpack promo for its cage free dozen 7’s. The promo will run until 9th April with 21 prizes available to be won through Henergy’s website. The major prize includes a 42 inch Sony TV, Sony Playstation 3 and an Infinity Starter pack. Henergy was the first food product to gain SPCA approval in NZ. n

NEW CHOC SPREADS

HERSHEY’S has introduced a range of chocolate spreads in America, including a hazelnut spread to rival Nutella. The category has experienced strong growth over the past five years, with U.S. sales of Nutella more than tripling in that time to be worth $240.4m. Hershey & Co is encouraging consumers to use the spread as a snack enhancer on crackers, strawberries, pineapples and carrots. n

MENTOS VERY SLENDIER’S FETTUCINE BERRY MENTOS continues to innovate and drive growth for the overall confectionery category with the launch of new variant. Mentos Very Berry includes a mix of strawberry, blackcurrant and raspberry chewy dragees and is handled locally by DKSH New Zealand. n

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

24

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March 2014

D’LITE Food Pacific has added a fettucine variant to its Slendier range which contains only eight calories per 100g serve. The Konjac based pasta range is low carb, low GI, gluten free and high fibre. Requiring no cooking, the fettucine only needs to be placed in boiling water for one minute before serving. n

NEW NEW FLOUR MILL PRODUCTS

LEE KUM KEE SAUCES

TWO new flavours have joined Lee Kum Kee’s popular ready sauce range with Sweet Chilli Chicken and Black Pepper Beef being launched.

Distributed by Acton International Marketing, the

range uses authentic Asian flavours and is quick and easy to prepare. Sweet Chilli Chicken is a blend of mild chillies and honey while Black Pepper Beef features a rich savoury flavour. n

A SOUTH Island farming cooperative of 12 wheatgrowers has launched a new packaged range of flour products under the brand Farmers Mill.

Launched this month, the company says it is leading the way with new thinking in the flour milling industry and bringing a point of difference to the market.

The company led by CEO Grant Bunting and national sales manager Mat Keys, says it has tied up a strategic alliance with French multinational Lesaffre.

The premium range of specialty pre-mixes includes Summit Bakers Flour, Terra Rye Flour, Titan Bakers Flour and Stratos Pastry Flour. n

COTTONSOFT MAKEOVER TUNA & RICE COTTONSOFT’S stable of brands including Doublelength and Posh 3-ply have been revamped with new packaging being rolled out from the company’s Auckland and Dunedin manufacturing facilites.

The new look packs from the Dunedin based toilet tissue company feature the Environmental Choice NZ certification and will be supported with a TV campaign beginning early this month as well as online and nationwide consumer promotions. n

SIMPLOT has launched a tuna and rice meal solution in Australia under its John West brand.

Available in Chilli & Tomato, Thai Green Curry, and Savoury Tomato & Onion variants, the new products are ideal for onthe-go lunches and can be heated and ready to serve in 45 seconds.

Meal components are packed separately in microwaveable tubs, providing consumers with control over the temperature of the meal. n

CHELSEA’S VINTAGE TIN CHELSEA Sugar has released a limited edition Golden Syrup tin to commemorate its 130th anniversary. The 1kg tin reflects the unique heritage of New Zealand’s only sugar refinery and is reminiscent of Chelsea’s original packaging. Available in April while stocks last. n

BUTTER LOG LAUNCH LEWIS Road Creamery has revealed its latest innovation in premium dairy with the launch of its new look Artisan butter log.

Available in a convenient and distinctive log shape for easy serving,

NEW AMBI PUR

P&G’S AMBI Pur brand has launched a new line of air fresheners designed for cars. Ambi Pur Car Mini combine advanced odour elimination technology with subtle fragrances and are designed to leave vehicles smelling fresh for up to 30 days. Featuring new no leak technology, Ambi Pur Car Mini releases long lasting sustained fragrance. The range is offered in Lavender Vanilla & Comfort, Sweet Citrus & Zest, Thai Dragon Fruit, New Zealand Spring and Linen & Sky. n

BUDERIM LOOKS BETTER

BUDERIM Ginger has unveiled edgy new packaging which the company hopes will bring ginger into the 22nd century.

The new look packs are vivid and bold with bright oranges and a tone that speaks flavour, acknowledging its rich history stretching back to when Buderim was founded back in 1941.

With over 70 years’ experience creating ginger products, Buderim Ginger has demonstrated they are the experts at bringing flavour to taste buds around the world. n

Lewis Road’s butter is handmade using certified organic Jersey cream and a traditional barrel churn.

The 100% Jersey cream and sea salt flakes provide a rich and creamy taste and texture. n

supermarketnews.co.nz

I 25

productwatch

KWANGCHUNG – SEASONED NORI • Great Tasting, healthy snack • Seasoned Nori sheets drizzled with sesame oil & lightly salted • Loved by the Koreans and is growing in popularity around the world • Multipack – 8 packets of 5g • Authentic fully-compliant packaging

productwatch

Oriental Merchant (NZ) Ltd

Tel 0800 10 33 05 Fax 0800 10 33 11 Email: nzenquiries@oriental.com.au Website: www.oriental.com.au

productwatch

For more information on Kwangchung Seasoned Nori please contact:

HANDMADE, PURE NZ BEEF SALAMI New Zealand’s Healthiest Salami

For more information contact 07 5725521 or 0508 4LASCO or vist www.lascosmokehouse.com

26

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March 2014

productwatch

productwatch

• 90% Fat Free • Dairy Free • Gluten Free • • Soy Free • Pork Free • Low Sodium & Cholesterol • • No gelling agents, emulsifiers or fillers •

HONEY DEMAND INCREASES PRICES NEW ZEALAND’S oldest honey brand and one of the country’s most prominent exporters predicts local honey prices will rise this year due to increased global demand. Airborne Honey’s managing director Peter Bray says Kiwi honey is becoming increasingly popular on the export markets and fluctuations overseas are likely to impact local prices.

“The crop this year will not be a

PRIVATE LABEL CONTRACT LOSS

AUSTRALIAN pie manufacturer Patties Foods has been heavily impacted by the loss of a private label frozen fruit contract, reporting a half yearly revenue increase of only 0.09%. Patties, which owns household brands such as Four’NTwenty, Nannas, Patties, Herbert Adams, Chef ’s Pride and Creative Gourmet, says despite challenging market conditions it will continue to focus on its core brands and NPD. “Stable revenue was achieved, whilst continuing to invest in branded growth initiatives, including innovation. Our disciplined focus on effective cost control meant that margins were only slightly down despite cost pressures,” says Patties chairman Mark Smith.

After tax, Patties net profit was down 3.3% on the previous corresponding period to A$8.755 million, a 7.5% decline on last year’s underlying net profit after tax. n

driver of price increases, regardless of whether it’s a successful season or not. Prices will go up in New Zealand because the world price is driving it,” says Bray.

On average, New Zealand produces around 12,000 tons of honey per year, with roughly half being exported to international markets. Last year Kiwi honey exports reached a peak of 8,086

tonnes and $155 million, an increase of 13.5% in volume and 34% in value on the previous year.

Both export amounts and prices have been steadily climbing since 2000, where average world prices for bulk honey were around US$1,500 per tonne. This year the figure has significantly increased to US$3,800 $4,000 per tonne.

“People throughout the world

EXPORTS TO CHINA RISE

Operating under the Resource Management Act, council officers have selected homes for submissions based on laws already in place. n

CHINA has established itself as New Zealand’s largest export market with shipments of whole milk powder, butter and cheese behind record exports. In January shipments to China rose by $590 million to $1.2 billion while exports to Australia fell by $80 million. According to Statistics New Zealand, the trade surplus in January was a record $306 million and the third straight trade surplus.

“The strength of Chinese demand for New Zealand exports continues to be a feature of trade data. Strong demand is leading to high international prices for New Zealand’s key commodity exports, and providing a significant income boost for exporters. We expect this to flow through the broader New Zealand economy in a myriad of ways over the coming year, including via a boost to consumption and investment spending,” says senior economist at Westpac Banking Corp, Anne Bonifact. n

RESIDENTS OPPOSE STORE A PROPOSED Countdown in Vogeltown has come under fire from angry residents who were not approached by the council for consent. The store, which would be New Plymouth’s fourth Countdown, would be located on Hori St between Brooklands Rd and Carrington St. The upset residents say they have been wrongly classed as not being affected by the development with increased noise and traffic being the major concerns.

WELLNESS DRINKS DRIVE BEVERAGES NEW US research by Euromonitor has found that health and wellness beverages are continuing to increase in popularity and currently running at 44% of sales in the non-alcoholic beverage market. Retail sales of health positioned drinks reached $US274b last year with that figure

are recognising the taste and health benefits and are also starting to appreciate the difference between types and origins of honey more than ever before. Consumption of genuine, undamaged, quality honey from New Zealand is increasing worldwide.”

New Manuka honey standards being developed by the Ministry of Primary Industries in consultation with the New Zealand honey industry are also likely to have an impact on honey prices. Bray says there is a real need for a set standard as there are many concerns about the genuineness of the product, which could taint the reputation of other New Zealand food industries.

“Any standard that is introduced will inevitably reduce the amount of Manuka on the market as there is likely to be a large portion of honey that doesn’t comply.

That will almost certainly lead to an increase in the price of genuine New Zealand Manuka honey, both here and internationally.” n expected to outperform soft drinks and hot drinks over the next three years.

Despite considerable publicity, organic drinks still only accounted for one per cent of the beverage market. The report added that consumers were not just looking for low-calorie beverages but for drinks with additional health properties including pre-biotic and pro-biotic attributes.

In this part of the world, CocaCola South Pacific is concentrating the majority of its 2013 marketing on the Coke Zero and Powerade Zero brands. n

NZ PORK CALLS FOR CoOL

NZPORK has recommended country of origin labelling (CoOL) requirements be introduced for single ingredient products under the Food Safety Australia New Zealand standard.

Despite being a signatory to the FSANZ, New Zealand has not adopted the same approach to labelling as its partner, with Australia requiring CoOL for fresh products.

Speaking to the Primary Production Select Committee last month, NZPork CEO Owen Symmans said New Zealanders consumers want to support local produce but aren’t aware they are buying imported products.

“49% of the pork and pork products consumed here is imported. Our research tells us that people generally believe the bacon, ham or pork they are buying is local and often the labelling, while legal, is misleading.”

Symmans said with some products, such as ham and bacon, the only ‘Kiwi’ components might be the water or the “Manuka” smoke used during processing, with the meat imported from Mexico or Canada. Symmans also believes rules need to be amended for processed products with the country of origin of the main ingredient identified in a clear and obvious manner. n

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Want to be featured here?

Email: jasmine@reviewmags.com or 09 304 0142 ext 713

THE DIFFERENCE BETWEEN THE GOOD AND THE BEST

By Jasmine Walters

AROUND New Zealand, there are hundreds of small producers in a wide variety of grocery categories who began, and often continue, their lives in the variety of markets that have sprung up. A number, with more marketing skills, have moved their limited production levels into local grocery and delicatessen outlets. And some of those will eventually develop into national products on a small scale until they get the financial backing and sales skills to take the items further. For grocery, they are another opportunity.

SOME LIKE IT HOT PETER Davy spent 18 years perfecting his hot chilli sauces before retailing the Some Like It Hot range in 2012. The company produces handmade chilli sauce in medium and hot variants along with a chilli pepper jelly.

Batch manufactured on Auckland’s North Shore, each batch produces 25-30 bottles of Some Like It Hot sauce. Containing 33% chillies, chunks of sweet cherry tomatoes, garlic, ginger and a hint of onion and herbs, every bottle within the batch is numbered and features a description on the company’s website.

Davy says his products differ to alternatives on the market as they have a good balance between heat and flavour.

“There aren’t many good sweet chilli sauces - in fact the overwhelming feedback from punters is that the market is full of imported rubbish. The Some Like It Hot sauces focus on the flavour of the fresh ingredients. We obviously love the heat, but the flavours come first.”

Using predominately local ingredients, the range is often compared with salsas and chutneys due to its thick consistency. Despite being launched recently the brand’s chilli pepper jelly has been well received by consumers.

“The pepper jelly is a little different and we haven’t come across one like it. It’s fantastic with cheese and crackers, cold meats and smoked salmon.”

Some Like It Hot sauces are currently stocked in Farro Fresh and Moore Wilson, however Davy says

grocery is a growth area for the brand.

“The stores that are more gourmet type owner operated are already in our sights. We have no interest in becoming a mass-produced el-cheapo number, but we definitely want to extend our reach.

We’ve had interest from punters as far away as England so it would be good if a few more of them had easy access to our products.”

The company is currently working on some new products which are due out later in the year. For more information please visit www.somelikeithot. co.nz

HIPI YOGHURT

ESTABLISHED last year, Hipi Yoghurt is a joint venture between James and Kate Clairmont from the Waiheke Island Cheese Company and the Waituhi Kuratau Trust. The company produces two sheep milk yoghurts in natural and honey flavoured variants and has recently collected a Cuisine Artisan award. Available in 350g and 500g pottles, the 100% natural yoghurts are made without the use of additives and are also offered in two litre pails for the catering industry.

James and Kate have been making award winning ewe milk cheese with milk from the Waituhi Kuratau Trust for the last five years, with milk sourced directly from the trust owned farms.

Kuratau Sheep Milk is the North Island’s major supplier of sheep milk with state of the art dairy and processing facilities.

Kate says being a sheep milk in a dominate cow milk yoghurt market helps the Hipi brand stand out in the retail space.

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“Sheep milk is naturally thick and creamy so we have the advantage of not having to add thickeners, gums or milk powders to achieve a lovely creamy thick product. It is also non-homogenised and has almost twice the amount of calcium than cow milk so it is an excellent product to consume and to get kids eating,” says Kate.

Sheep milk is also generally suitable for those suffering from lactose issues, making it a popular choice for a growing number of consumers who can’t tolerate cow milk products.

While it’s early days the recent Artisan award has given the brand exposure with both the trade and consumers “It has helped enormously in promotion of this new product as it provides real credibility in the market and certainly helps us to be noticed in the restaurant sector,” says Kate.

The Hipi range is currently stocked in Farro Fresh, Huckleberry Farms, Moore Wilson, as well as a number of New World stores in the greater Auckland area. James says grocery is a growth area for the company.

“We believe consumers are really seeking out new and healthy products as well as products that are alternatives to cow milk. Certainly for consumers who for many reasons choose not to consume cow milk, Hipi is an excellent and often welcome addition to the yoghurt section of their store,” says Kate.

New variants and other pack sizes are in the pipeline. For more information please visit www.hipi. co.nz

If you would like your ad in this space? call Felicity on 09 304 0142 ext 704 mobile: 021 534 939 email: felicity@reviewmags.com

FARRO’S ARTISAN FESTIVAL Farro Fresh’s Grey Lynn store hosted an artisan producers night festival in its forecourt

last month. Owner Janene Draper says it was an incredibly successful event for the community and the turnout was outstanding. “The success of the event was a truly collaborative effort from both our food-loving staff and the fabulous Cuisine Artisan Award-winning producers who took part in the evening. This is what Farro Fresh stands for, supporting the best of New Zealand artisan suppliers and to have them all at Farro Fresh that evening was what made the event so wonderful,” she says.

food.

IT’S OUR BUSINESS. Register now for the most important trade-only event for your business, Fine Food New Zealand. It’s the only comprehensive, international exhibition for the bakery, retail, foodservice and hospitality industries in the country, showcasing the latest in food, drink and equipment from leading producers.

This major event only happens every two years, so register by 13 June 2014 for FREE entry at www.finefoodnz.co.nz and enter code SUP3 Exhibitor enquiries to Tim Wilson: tim@finefoodnz.co.nz.

22 - 24 June 2014 ASB SHOWGROUNDS GREENLANE, AUCKLAND NZ www.finefoodnz.co.nz Strictly trade only. Entry is restricted to members of the retail, foodservice and hospitality industry.

Proof of business identification may be required. Persons not in these categories, including children, will not be admitted at any time. No prams permitted.

supermarketnews.co.nz

I 29

SIMON STOREY CONTINUES HIS SEARCH FOR THE NEW AND NOVEL Toilet ITB’s and ITC’s

competition. Airpure has two products, Fresh Stripes and Maximum Toilet Gel both dispensed on to the inside of the bowl via a slide and piston mechanism.

The other unit called Bloo Flowers

by Jeyes, a familiar name in toilet care in the UK, uses a bowl strap with the fragrance block suspended from it.

These cageless toilet bowl fresheners offer many advantages but rely heavily on correct application of the plod on the bowl surface.

Ready Gift Wrapped

In The Bowl and In The Cistern toilet freshener/cleaner have long vied for consumer attention. ITC’s were drop in and forget. But they could be over active in warm water or just disintegrate with or without flushing activity. They could also be fiddly to install given the difference in cistern mechanisms.

However the most unfortunate feature was the potential for some formulae to damage cistern seals and gaskets causing leakage. Hence the leaning towards ITB’s. All would have been plain flushing but for one serious drawback - dislodged cages becoming stuck in the pan and requiring plumbers to rectify. The basic problem was the number of bowls with varying rim configurations and thus limits on cage strap performance and varying water flow.

Hence the interest in cageless products, although there was some scepticism that the ‘plod’ or ‘stick-ons’ would quickly wash away with nothing to support them. SCJohnson entered the market with Fresh Sticks and in the UK there are at least three products in

Here is a novel idea by packaging the product ready as a gift. Cadbury has developed a number of packs where the emphasis is on the pack as well as the product. Hazlenut Praline chocolates are presented in, for instance, a heart shaped box ‘With love’ or in a hexagonal box saying ‘Thankyou’. Ideal for that last minute gift. Perhaps future packs could have space for the donors name and a short message ?

snacks and their mouth watering presentation on shelf, even in stores like Iceland.

Cadbury has launched Praline Fingers, a chocolate finger with two layers of milk and white chocolate in a gaudy packet wrap headlined Fabulous Fingers. Alongside that pack is Mcvitie’s Digestive Slices each individually wrapped inside the outer wrap again in bold colours.

You could not miss it on shelf, and the word ‘Digestive’ is an obvious lure. Tesco’s Heat Me Eat Me Cookies is their offering to the palate promising ‘deliciously gooey when heated’ or if eaten cold enjoy the ‘soft hazelnut flavour’.

Nestle are on the brand extension trail too with their ageless Kit Kat product. It went into chunky format and dark chocolate but has recently opened the door to more.

Cookie Flavoured milk and white chocolate covers the wafer biscuit now. Interesting that the standard size wafer carries a Fair Trade symbol probably for cocoa bean source.

Fresh Daily Supermarket News On

www.supermarketnews. co.nz

Mv Goodness for its product-a chocolate cocktail of various goodies for recovery after gym or training. I liked the name Symingtons use for their dried packet soup. ‘Mug Shot’ is really ingenious. n

Naming it with a smile Sweet Snacking the Brand

Noticeable in the UK is the tendency to build on existing brands with new variants and recipes. There is a sweet tooth in much of the population bringing a proliferation of sweet

The Sun newspaper in the UK has many quirky headline such as ‘Cache your savings with us’. Several companies are considering the benefits of clever product or brand catchphrases.

Curl up and Dye for a Lady’s hair product is a really neat one as is ‘For Great Shakes’ from the manufacturer,

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Peter Mitchell

WITH the Herald columnist Dita de Boni advocating a Government-run supermarket system last month, the hysterics never stop. Cynical blogger Cameron Slater at Whale Oil of course stirred it along and among the many respondents to his comments was one about the potential nationalisation of supermarkets in Russia. A man walked into a store and asked if it had any meat. Nyet, said the man behind the counter – “we are the shop without vegetables – the butcher without meat is over the road.” The concept of having Government run grocery here along with the claim that they would have much cheaper products, is pure fantasy. It must have been a joke column.

IN defence of its stance over private label supply in Australia, Woolworths has been running full pages in New Zealand newspapers reporting a strong and growing relationship with New Zealand suppliers. It says it currently buys in excess of $300m of our products for supermarket resale and this level is growing stronger every day. In fact Woolworths and Coles have proved a bonanza for New Zealand producers – almost as much as our two supermarket groups have been for Australian producers and suppliers where our purchases from across the Tasman run into the billions.

BLOKE at the Dublin race meeting whispers to his mate Paddy: “Do you want the winner of the next race ?” Paddy replies “No tanks, oi’ve only got a small front paddock…”

WHILE bricks and mortar still clearly wins the grocery sales race, New Zealanders last year spent $5.87billion online but some interesting notes have come out of new Roy Morgan research. Only 38% of those surveyed felt comfortable about giving credit card details over the internet; two out of three online shoppers preferred to buy from online retailers they knew about; 52% of online shoppers only buy from New Zealand online stores. It makes a strong case for our grocery retailers continuing to develop online shopping.

WE’RE all getting a little tired of food police hunting down our industry – this time on sugar which is turning out to be the new tobacco. A new national survey of 3451 people has led to newspaper headlines that claimed “the majority of New Zealanders had shown some support for controls on how much sugar can be fed to us by the softdrink industry..” So when did about 1500 (46%) or so selected people represent the majority of New Zealanders. At least there was some sensibility from Health Minister Tony Ryall who said the Government had no plans to introduce a sugar tax or sugar restrictions.

And of course the beverage industry reckons that limiting sugar in drinks wouldn’t solve the obesity problem. The industry has gone a long way down the track of lowering sugar volumes and has been pretty responsible but these mainly academics are trying to raise headlines to justify their ongoing attitudes. The single focus on sugar sweetened beverages makes us think that a couple of protagonists might be running a vendetta against Coke and Frucor.

AND I couldn’t resist another Irish yarn. Joe said to Paddy: “You should close your curtains at night when you’re making love to your wife. The whole street was watching and laughing last night.” Paddy says: “Well the joke’s on them because I wasn’t home last night …”

CURRENT news overseas right now is that self-scanning is under fire with the claim that billions of dollars are being lost through customer cheating. In the UK, new research claims that at least $NZ3b is being stolen each year through self scan with one in five shoppers thieving. In the US and Australia, retailers are reluctant to go on record with a dollar figure lost at do-it-yourself checkouts, but apparently it is high, despite staff providing assistance. Off the record comments here say that most customers are doing the right thing, but …

THE strong Kiwi dollar is proving profitable for our importers (not so hot for exporters), but economics are making it tough in America. It has been said there that a picture is now only worth 200 words, that a truckload of Americans were caught sneaking into Mexico, that CEO’s are now playing miniature golf and that ExxonMobil has laid off 25 congressmen.

GOT to have a bit of fun with Watties because we accidentally latched onto a secret new product. Bought a three pack of canned spaghetti the other day and don’t know what happened to the batch but it was mostly tomato sauce. This is clearly a new product called spaghetti soup that they are trialling for winter – just hasn’t been relabeled yet.

NEW Zealand is still sitting on the fence over plain pack tobacco legislation while Australia resolves its legal challenges.

There’s some powerful international trade opposition to this becoming a worldwide phenomena and after it being in place in Australia, retailers there reckon it’s simply a waste of time and has hardly made a dent in sales but caused endless problems at the checkout. Certainly the subsequent legal disputes here will cost the Government millions in legals and multi-millions in lost tax if they persist further.

AS a final note for the month, the “can’t be bothered” attitude of a major international biscuit and soup supplier has us staggered.

The marketing people say they have no interest in trade communication (even when it is free) and this just reflects the biscuit problems it is having in Australia where it is finding the going tough.

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FINE FOOD NZ PACKED WITH FEATURES

FINE Food New Zealand returns to ternational food Auckland’s ASB Showgrounds from to 24 June 2014, showcasing the tality 22best event. and most innovative products and services to the foodservice and food retail industries.

nt

“The show couldn’t come at a better time, with strong growth tipped for the sector,” said Dona White, CEO of ASB Showgrounds, organisers North Port Events.Auckland The biennial event is anticipated to www.finefoodnz.co.nz outstrip the success of the Fine Food NZ 2012 show – 70% of its exhibition space has already been sold, 10% more exhibition space has been added to meet demand, and more than 1000 top quality buyers have already pre-registered, including visitors from China, Australia, Malaysia, Singapore,

13 – 15 June

India, Thailand, the Pacific Islands, and New Zealand.

“The show has been a huge success since its inception in 2010 – and we’re confident the 2014 show will easily surpass its predecessors with an anticipated 300 exhibitors,” she said.

Buyers attending the show will have access to a variety of international exhibitors, including Mama Ka’z, JC’s Quality Foods, Hobart Food Equipment and Sanmik Natural Foods from Australia, a China pavilion, Mebel Art from Poland, the Federation of Malaysian Manufacturers and Expolanka Teas from Sri Lanka amongst many others.

Industry awards recognising new and excellent products making a contribution to the grocery and foodservice business are again a strong part of this event. The sole sponsor of this activity is Review Publishing, the publishers of SupermarketNews and Restaurant & Catering News. Four categories will run again this year with

26/04/10 4:19 PM

a total of $20,000 in trade advertising as prizes. Details of the entry criterion will be published shortly with an entry deadline of June 1.

Fine Food is providing a highly concentrated one-stop-shop for business owners and operators, plus relevant educational and networking opportunities. Independent research carried out by Covec confirms that Fine Food NZ really delivers on its promise to exhibitors and buyers alike, connecting suppliers with thousands of new customers and helping New Zealand businesses to grow.

“While the economic outlook is improving, businesses need to keep on top of ongoing challenges such as high labour costs, sourcing skilled workers, and the demands of a crowded marketplace. This is where the show provides real value, enabling owners and operators to take time out from the daily grind to reassess their business direction, find new products and suppliers, and make great decisions,” said White.

THOSE ADVERTISING COMPLAINTS

THE advertising complaints against grocery branded items continue unabated. Some of the latest are reported here.

HELLERS: A viewer complained that the Hellers tvc where comedian Leigh Hart was barbecuing sausages on the back of a moving ute was upheld by the Advertising Standards Authority (ASA) . The concept was really good ventilation to get the bbq really firing up – and it was a joke that was unlikely to be taken seriously especially as it was suggested that 200kph was the ideal speed.

GSK: GlaxoSmithKline got hammered over its Panadol tvc that claimed its Panadol Extra was 37% more powerful than standard paracetamol tablets. The complainant said the bar graph on the tvc was wrong so the claim was misleading.

The ASA didn’t agree and didn’t uphold the complaint.

COLGATES: A Colgate-Palmolive tvc on Slimsoft toothbrushes was complained about with the claim that a toothbrush having 17 times slimmer fibres was unverifiable. Colgate came up with an affidavit that verified the research backing the claim and the complaint was not upheld.

GENERAL MILLS: A complaint claimed that Mexicans were denigrated in an Old El Paso tvc because they didn’t know how to handle forks. The ASA thought it simply humorous and was reasonably unlikely to offend. The complaint was dismissed.

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FOODSTUFFS: One of the tvc series of department “professionals” met with disapproval by a viewer who said the fruit and vege tvc discouraged people from growing their own vegetables.

The ASA said the suite of advts were comedic and hardly likely to offend – and found no grounds to proceed.

Foodstuffs also got a viewer’s raspberry for sexual innuendo over some fruit held by PnS’s Stickman that looked remarkably like breasts. The ASA thought there was some humorous double entendre but found no grounds to proceed further.

for the shorter time online was to meet delivery schedules.

COUNTDOWN: The chain promoted a One Day Sale but a complainant claimed it only lasted 21 hours online over a two day period. The Complaints Board found the voiceover on the tvc was likely to mislead and upheld the complaint even though the group did extend the promotion online. The stores themselves offered product over the full 24 hours. Countdown said the reason

PROCTER & GAMBLE: Energizer complained that a Duracell battery tvc run by P&G went beyond All Black endorsement to the point of being untruthful. But the ASA found otherwise after lengthy submissions by both parties and that the All Black endorsement was genuine and legitimate. As a result, the complaint wasn’t upheld.

BEIERSDORF: Unilever complained that Beiersdorf ’s new Nivea Stress Protect didn’t do what it claimed in a tvc. The Nivea claim was that it protected in five ways, lasted 48 hours and had a cool fresh scent. Unilever was of the view that Nivea could only claim protection in three ways and that there was nothing new in the claim. In a complicated decision, the complaint was partially upheld on the basis that the tvc tended to overreach. n

“The show attracts New Zealand’s biggest range of trade exhibitors and provides real insights into the future of the industry. Visitors find it a truly inspirational experience that gives them new tools to tackle the challenges they face in the marketplace and helps them bring fresh ideas to their businesses that really make a difference.”

All the major hospitality industry associations are back on board for Fine Food NZ 2014, including the Restaurant Association of New Zealand (RANZ), Baking Industry Association of New Zealand (BIANZ), New Zealand Chefs Association (NZCA), NZ Food & Grocery Council (FGC), and Hospitality New Zealand (HNZ). Free registration for trade visitors is now available for Fine Food NZ 2014 online at www. finefoodnz.co.nz until Friday 13 June 2014. Registrations after 13 June incur a $20 fee. Prospective exhibitors should contact Tim Wilson, Exhibition Sales Manager on 09 376 4604, 021 083 71526, or email tim@finefoodnz.co.nz.n

supermarket

diary 4-6 APRIL

CANTERBURY FOOD SHOW CHRISTCHURCH

9-11 MAY WELLINGTON FOOD SHOW

13-15 MAY SIAL CHINA, SHANGHAI

22 MAY FGC HALF YEARLY VILLA MARIA, AUCKLAND

18-20 JUNE 2014 FOOD EXPO YANGON, MYANMAR

22-24 JUNE FINE FOOD EXPO, AUCKLAND

31 JULY-AUG 3 AUCKLAND FOOD SHOW

7-9 OCTOBER JUICE & BEVERAGE ANNUAL CONFERENCE NAPIER

19-23 OCTOBER SIAL, PARIS

5-7 NOVEMBER FGC ANNUAL CONFERENCE QUEENSTOWN

26-28 NOVEMBER NORTH CHINA WORLD OF FOOD (ANUGA DIVISION) BEIJING

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