SupermarketNews // April 2014

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“The business of supermarkets and greengrocers affects the business of growers – we prosper if you prosper.” David Smith, United Fresh (see page 14)

ATTACKS ON COUNTDOWN ARE COSTING THE CHAIN MILLIONS SupermarketNews publisher Peter Mitchell says the nastiness must cease…

WHAT started out as a political attention-grabbing foray, has turned into a nasty and costly exercise for the Australian-owned but New Zealand operated Countdown chain.

And in the process over the last couple of months, Foodstuffs has picked up market share at the same time playing

COLES & ALDI ARRIVAL NOT IMMINENT

INDUSTRY rumour has been rife this past month surrounding German discount chain Aldi apparently relinquishing its New Zealand company and domain name registrations, paving the way for Coles to enter the local market.

When approached both companies didn’t close the door on crossing the ditch, but said its commitment at this time lay in Australia.

“We don’t like to comment on market rumour and speculation but we believe there is plenty left for Coles to do in Australia before looking at other markets,” says Coles’ Communications Coordinator Evie Ridgway.

An Aldi Australia spokesperson also denied any intention to enter the Kiwi market in the near future.

“Over the last 13 years, Aldi has made a commitment to the Australian community by offering the Smarter Shopping experience. We currently have plans to extend this offering to new markets in Australia, however we have no immediate plans to enter the New Zealand market.” n

the market’s locally-owned good guy.

The important issue that is being missed by many is that the industry’s suppliers and the consumers need two (at least) exceptionally strong competitors. To have either of the two dominate the market leaving few alternatives for suppliers, would be the death knell for many of our smaller players.

Yes, it is tough out there in some instances for suppliers but it is also becoming increasingly hard for the retailers with rising labour, site and product costs.

The Commerce Commission will sort through a number of grocery industry aspects and likely find that neither of the two retailers has seriously endangered the supplier species, many of whom are making exceptionally

good margins either in this country or at overseas source.

The issue of Countdown comments that some multi-nationals are taking high margins in this market, is a side matter here. There is little doubt that identical products can be parallel imported from a multi-national source at a lesser price and the threat to do this is again a matter of negotiation. A number of suppliers/ agents over the years tell the tale of an imported product being offered and the retailer subsequently going direct to cut margins.

But the only true competitive aspect of the retail grocery industry is the ability to boast lower prices and it will always be the supplier who is the butt of the pricing equation from both groups.

Of course the newspapers are continued on page 2

FOODSTUFFS TO RELOCATE WELLINGTON OFFICE FOODSTUFFS North Island is to relocate its Wellington region support staff from Silverstream in a move that will probably take 12 months. No new site has yet been named. FSNI says the office will stay in the Wellington area but the final decision on a new site will depend on suitable premises being found. The other infrastructure at the current Silverstream location including warehousing, transport and bottling operations, is to form part of a future review.

Silverstream’s Kiln Street buildings have been in use for around 40 years but property development general manager Angela Bull said it was time to find a place that was fit for the company’s purposes beyond 2014. “We need to create more meeting areas where staff and owner/ operators can gather to share ideas and give us more flexible work spaces that allow project teams to come together,” she said. n

NZ PRODUCTS FOR PARIS

NEW WORLD KUMEU

NEW World Kumeu officially opened this month. Pictured above is Economic Development Minister Steven Joyce with owner operator Harry Chawla. Full story and pics on page 6.

THREE New Zealand products representing evolving trends in the grocery industry will be part of the product line-up before SIAL judges in Paris later this month.

SupermarketNews marketing director Tania Walters will be presenting the New Zealand products as part of an international “World Tour By SIAL” programme that will be seen by over 160 buyers from a wide range of countries.

In the judging programme of earlier years, a number of major grocery categories were covered but the contest has changed this year and narrowed down to feature products that represent trends in New Zealand. n

contents 04 Foodstuffs NI Conference 16 Store Check 18 Beauty Aisle 20 Beer & Cider feature 23 Liquor

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12 19

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editorialcomment WELL, this industry never stands still. If it’s not the Commerce Commission poking into our business, it’s academics wanting all sugar banned from our lives, major IT changes at Foodstuffs, Countdown battling to regain some lost market share caused by politicians and even our opposition mag falling over.

It’s been a never ending round of new store openings and planning, retirements and even industry stalwarts passing on.

Truth is we just have to get on with it and trust that the industry settles down again to its traditional anti-competitive behavior – nothing new about that.

At the lower end of the market where competition is just as fierce

between the semi-supermarket operations such as Four Square and the steadily growing oil channel convenience offerings, we do hear a few grumbles that the name Four Square may have had its day.

It does seem that the connotations of the name conjure up the old corner dairy image. Perhaps it could take a huge name change and investment – after all the supermarkets spent $170 million on advertising in New Zealand last year and not much at this level.

PETER MITCHELL Publisher

ATTACKS ON COUNTDOWN . . . continued from page 1

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www.supermarketnews.co.nz

sndiary 9-11 MAY Wellington Food Show

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

having a field day at the expense of the grocery industry and predicting a backlash that in the end will affect lower prices for consumers. There also must be concern for the effect on Countdown’s 18,000 staff employed in over 160 supermarkets and supply plants who are currently facing cutbacks. This is now becoming a social issue triggered by a politician who has yet to prove his point outside of parliamentary privilege.

The Commerce Commission result will be interesting to the whole industry but we simply need to provide some sensibility to ensure the industry settles down to a workable grocery industry for all – retailers and suppliers.

But we do need to leave it to the commission now to get to the bottom of the claims. And out of interest, I would defend Foodstuffs in exactly the same manner. n

WE’RE always being told how tough the market conditions are out there from both suppliers and retailers.

While both banner groups have each spent a whopping $80+ million on advertising over the course of the year, the nation’s dairies and convenience stores are reliant on foot traffic, repeat business and word of mouth. You have to admire the dairies and convenience outlets who are attracting new customers through diversification. One such convenience store in Auckland’s CBD has caught our eye with an offering that is a more than a little bit different. The store is a dry cleaning agent, western union, offers free wi-fi AND eyebrow threading is available for only $5.99!

On another note, from this month

JASMINE WALTERS Editor

John Carroll Passes On ONE of the doyens of the grocery supply industry, John Carroll, passed away in February after a long battle with heart disease. Although he had retired around 11 years ago and sold his company Topline Marketing, he retained a passionate interest in the grocery industry.

John (82) joined the Topline operation as a partner in 1972 and acquired full control of the company in 1991. He started out as a boy with Arthur Nathans and then spent over 20 years with aerosol and flykiller producer Cooper, McDougall and Robertson – an entire life in the grocery industry.

As a leading broker, John had a close association with both Malcolm Perrett and Phillip Coates (and previously Hans Nathan and Bob Fairbairn) as the Upper North Island arm of this triumvirate they called Triple A Foodbrokers. As many in the trade commented, John was a man with a very

DIFFICULT TRADING FOR HANSELLS HANSELLS Food Group is making adjustments to its business to cope with difficult trading conditions that have left it with sales and profits below budget. Sales variances have largely been driven by the Australian market.

New Zealand sales for the latest

we will be circulating a weekly newsletter for the industry. If you haven’t signed up, you can do so through the tab on our website.

This year Felicity and I are making a concerted effort to be out in the market meeting with suppliers and retailers. If you haven’t received a visit from us yet, but would like to discuss working together please feel free to contact either myself or Felicity on (09) 304 0142 ext 713.

Have a profitable month and a happy Easter!

quarter have been slightly behind budget but the UK has done well.

The company has now exited the Canadian market.

The company has put its Masterton plant on the market but under new ownership, it is expected

professional business approach with a strong knowledge of the grocery trade and a reputation for reliability, honesty and integrity.

His old school values were recognized in the early days having grown up with Foodtown founder Tom Ah Chee and associated with 3Guys operator Albert Gubay. On the sporting front, John was a keen rugby supporter and at one stage was chairman of College Rifles and a delegate to the Auckland Rugby Union. But it was bowls that he ran his life around. He was Carlton president, twice president of Howick and president of the Auckland Centre in its centennial year.

John was married to Jacqueline for 60 years and survived by her, son Peter and daughter Wendy, both of whom remain in the grocery industry. Peter is a Foodstuffs Four Square operator. n

to continue the manufacture of some Hansells lines.

The role of CEO will once again taken by group creator and shareholder Ross MacKenzie when John McKay departs in June. At the same time, the company will consolidate its major production facilities in Auckland into its new Botha Road plant and is restructuring its national sales team. 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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CADBURY APPOINTMENT

CADBURY has appointed former CocaCola stalwart Brid Drohan-Stewart as its new general manager of marketing.

Drohan-Stewart replaces Iaan Buchanan who left the confectionery giant earlier this year amid allegations of an interoffice relationship.

Drohan-Stewart has 15 years experience at Coca-Cola, with her most recent role being in the UK, overseeing a marketing portfolio comprising 21 brands. Irish born Drohan-Stewart was previously Coca-Cola’s marketing manager of sparkling in Auckland for three years.

NEW MANAGER AT BLACKMORES

WELL known marketer Deva Dhar has been appointed country manager of nutrition company Blackmores. Dhar has been in the grocery sector for more than 14 years in addition to spending the past six years in the health and beauty industry. He has a degree in biological sciences and is a business management post graduate with specialization in marketing and systems.

FOODSTUFFS NI CONFERENCE PAK’nSAVE, New World and Four Square owners from across the North Island came together last month for the inaugural Foodstuffs North Island (FSNI) Conference. Held at the Langham Hotel in Auckland, the conference was the first opportunity for owners from both the Upper and Lower North Island to come together and share ideas for the future.

One area of focus was technology and the way it can impact or enhance the customer shopping experience – a topic that is front of mind as Foodstuffs continues to roll out its planned upgrade of the business’ enterprise resource planning (ERP) system.

As always the customer remained central to the discussion as the business recognises that it must stay on top of the changing consumer landscape, it was on this topic that FSNI Director Jane Freeman provided some great insights to the group. The conference wasn’t all hard work, with the funny men from TV3’s 7 Days dropping by and creating ‘7 Dazed and Confused’ with help from a couple of owners and support centre staff. Paul Ego and Dai Henwood’s humour didn’t fail to deliver and the segment provided much hilarity for the audience. n

FOOD PRICES FALL

STATISTICS New Zealand says February food prices were up 0.2% on last year, despite falling 1%. Boxed chocolates led the decline, falling 21% while the price of lamb dropped 9% and beef 4.6%. Driven by apples and tomatoes, the cost of fruit and vegetables also fell, down 5.1% and 6.5% respectively.

SPC IN $70M DEAL

COCA-COLA’S struggling SPC Ardmona brand has been handed a lifeline with a $70 million private label contract with Woolworths Australia.

The five year agreement follows a $22 million assistance package by the Victorian Government to upgrade facilities at the Shepparton based cannery.

SPC will supply fruit and canned tomatoes for Woolworths’ Select home brand, with the contract resulting in a 5% increase in annual production.

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AFTER 43 years in the grocery industry and many of those as the country’s leading operator, John Street has called it a day and sold his Lincoln Pak’nSave.

As one of five children, his life almost took a wrong turn when his parents thought he should be a fitter and turner. But the Four Square over the road from his Hillsborough home in Auckland had more appeal and he worked there as a youngster.

It was there he learned about the Foodstuffs scholarship scheme and it was always at the back of his mind as he moved stores, first to Mt Eden Four Square, back to Hillsborough Road and then New Lynn Four Square under Les McKeen.

The Mt Eden stint was to change his life. It was there he met his lifelong friend and later partner Graeme Blackburn. The round of Four Squares continued with a manager’s role at Gossamer Drive in Pakuranga and then he turned the West Tamaki Road IGA into a Four Square at the age of 26.

Foodstuffs by then had become part

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1. 7 Dazed and Confused: Paul Blackwell PaknSave Albany, Michael Kelly PaknSave Upper Hutt, and Paul Ego 2. Jane Freeman, Foodstuffs North Island Director 3. Rosalind Foster, PaknSave Rotorua and Karen Huston, Four Square Edmund Road Rotorua 4. Rob Redwood

TOP GROCER CALLS IT A DAY

CEREBOS PLANT CLOSURE

CEREBOS Greggs has announced plans to close its Auckland manufacturing plant by December 19, resulting in the loss of 125 jobs.

Chief executive Terry Svenson blamed the closure on increased running costs and the need for capital investment at the East Tamaki facility.

“This is truly a sad day for everyone involved. But we can’t justify continuing to invest money in this ageing plant when we already have more modern manufacturing facilities capable of increased volumes,” says Svenson. Coffee production will move to Dunedin while food manufacturing will be transferred to Sydney.

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of his life and the Auckland company offered him ownership of Browns Bay New World along with John Harper.

This was a turning point and a reputation builder. When he bought that store, it was turning over $40,000 a week. When he sold it in 1987, this had skyrocketed to $350,000.

It was then that the partnership with Graeme Blackburn kicked into gear.

Graeme had opened Alderman Drive Pak’nSave nearby and they joined together to own that and Lincoln Road across the road from the present site which is now the country’s largest supermarket.

Lincoln Road opened with a $500,000 a week budget but was soon doing $1m. This set the seal on the Pak’nSave development programme and its over-trading drove it to a new generation building across the road that did $3m in its first week back in 2004. That 9,600 sq m unit is still number one in the country (with counting liquor) and is serving in excess of 42,000 customers a week.

In 2010, Graeme Blackburn retired(and more recently passed away) and the pair sold Alderman Drive to John Smith and late last year, Lincoln moved into the hands of Glenn Cotterill.

During this time, he was recognized by fellow Foodstuffs members and was on the Auckland board for 30 years including a stint as chairman for seven years. As well, he was chairman of Foodstuffs New Zealand on three separate occasions when the Pak’nSave concept was developing.

He is still a Trustee of FoodstuffsNI and three years ago was proud of his life membership awarded by the organisation.

Outside of grocery, John has been a dedicated golfer, supported and

sponsored many tournaments and was made a life member of North Shore Golf Club after 35 years there.

In addition, he and Graeme Blackburn made their names in the racing industry having huge successes in both harness and thoroughbred codes. Their Lincoln Farms partnership has had 360 winners, now buys, sells and races horses in both codes with a breeding and racing stock of 85 horses. The Lincoln Farms stud in Christchurch is standing popular stallions Sir Lincoln and Attorney General.

The pair started out at the bottom as owners stacking shelves, weighing up and doing the menial tasks. And at night they both worked five days a week in a bakery to make ends meet – a great partnership with Graeme that was always 50/50.

And the success ? It was due to sticking to a format with a disciplinary approach to business – an issue he says is still important. John is proud of the success of Lincoln Road and the support he has always had through his career from his wife and partner Lynne both of whom now deserved a well earned retirement. n

FMCG SUMMIT CANCELLED THE FMCG Marketing Summit,

scheduled to take place in Auckland last month was cancelled due to insufficient delegate numbers.

Organiser Conferenz attributed the lack of interest to a number of factors including its marketing efforts occurring over the busy Christmas period. Marketing manager Matt Palmer hopes to run a similar event for the grocery sector within the next 12 months. n

supermarketnews.co.nz

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NEW HEAD FOR ASUREQUALITY

CURRENT Hansells CEO John McKay has been appointed Asurequality’s new CEO, commencing June 3.

McKay is an experienced international business leader who comes with p r o v e n experience in the food and dairy sectors and has a strong customer partnership approach. McKay has held roles in Asia, Latin America and Europe, previously completing stints at Fonterra in Singapore and American Express in Europe.

NW KUMEU OPEN

INDUSTRY FINED

THREE grocery players have been fined this month with Fonterra, Kuehne + Nagel and Henergy Cage-Free all being brought before the courts. Fonterra was fined $300,000 for last year’s botulism scare which damaged New Zealand’s international reputation and resulted in products being recalled from shelf.

Kuehne + Nagel is being prosecuted in Auckland’s High Court by the Commerce Commission for its role in a freight forwarding cartel. The sixth freight company to be brought before the courts, Swiss-owned Kuehne + Nagel has agreed to pay $3.1 million as well as $100,000 in court costs. Henergy Cage-Free was fined $40,000 by the Greater Wellington Regional Council for dumping effluent without consent.

FOODSTUFFS North Island is bringing convenience and choice to the Kumeu region, opening its latest New World earlier this month.

Officially opened by Economic Development Minister Hon Steven Joyce, New World Kumeu is the first banner supermarket in the area and has created 105 jobs for the community. The 2,850 sqm store features a fresh bakery, butchery, deli and seafood counters as well as a large fresh produce section.

Owner-operator Harry Chawla has 14 years experience in grocery and says the store is very green focused with an extensive fresh offering to support local growers.

New World Kumeu represents a new generation of supermarket, with plenty of natural light and glazing, and sustainability features to lower the carbon footprint including transcritical CO2 natural refrigeration, lids on freezers and LED lighting.

The Kumeu store will also be one first to implement Foodstuffs new Waste Minimisation Plan, which aims to send 90% of waste materials to other uses instead of a landfill.

Produce and bakery waste will become stock feed, cardboard and plastics will be recycled, and proteins will be reprocessed.

It is estimated these features will shrink the carbon footprint in-store by 50% in comparison to a store five years ago. n

SEALORD TO DOUBLE SALES

SEALORD has secured a deal to have its sustainable fresh New Zealand hoki stocked in Australia’s Woolworths stores, a move the company expects will more than double its sales in 2014. Sealord’s frozen products have been sold through Woolworths for more than 20 years and the expansion into fresh in season hoki represents several million dollars of new export business.

Hoki has undergone a revival in New Zealand and Australia in recent years, thanks in part to its availability as a fresh fish option in supermarkets and its sustainability credentials.

New Zealand hoki was the first white fish in the world to be certified by the global Marine Stewardship Council, and has now been certified for the third time.

CHOC NAME DISPUTE

WHITTAKER’S attempt to trademark its Berry Forest chocolate has landed in Wellington’s High Court. The Intellectual Property Office approved Whittaker’s 2010 application last year, however, rival Cadbury has appealed on the grounds it is too similar to its 1992 registered Black Forest. Justice Rachel Dunningham has reserved her decision.

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AVOCADOS IN MPI DEAL THE AVOCADO Industry Council has announced a new five year partnership with MPI which is set to increase the productivity and capability of the industry, delivering significant returns for New Zealand.

Called Go Global, the Primary Growth Partnership (PGP) program is predicted to increase avocado sales to more than a quarter of a billion dollars by 2013.

“This PGP program will create significant value across the industry, helping position New Zealand’s avocado industry to capitalise on the growing demand domestically and in Asia, for premium, safe, and healthy produce,” says Avocado Industry Council CEO Jen Scoular.

Go Global’s vision is to equip the industry with the tools to triple productivity to 12 tonnes per hectare and quadruple industry returns to $280 million by 2023, with an aim to become the avocado supplier of choice in Asian markets.

“A consistent supply of premium avocados and a unified marketing

strategy which creates a point of difference for New Zealand avocados will drive this growth,” says Scoular.

Justine Gilliland, Director PGP, MPI, says a total investment of $8.56 million has been secured for the program, with MPI committing $4.28 million over five years, and the balance coming from industry partners as a mixture of cash and in-kind contributions.

Go Global is the first horticulture program involving fresh fruit in the PGP. n

Jen Scoular

PROGS HR APPOINTMENT

DEBORAH Beegling has been appointed general manager for human resources at Progressive Enterprises.

An extensive background in retail, Beegling previously held the role of national HR manager for Woolworths’ Group Retail Services, where she was responsible for the broader development of the same sector including the Woolworths multi channel teams and the supply chain side of the organisation.

Beegling has served many years with the Woolworths business, where she commenced her career in supermarket operations, moving into roles including corporate support and IT. n

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NO EVIDENCE THAT “FAT TAXES” ACTUALLY MAKE A DIFFERENCE AFTER successfully campaigning for restrictions on the display and sale of alcohol and tobacco products, a growing number of public health advocates, most funded by the taxpayer, are turning their sights to high sugar products, specifically fizzy drinks. Buoyed by their recent wins, including the imminent introduction of plain tobacco packaging and alcohol being restricted to a single non-prominent location in all stores, these advocates are calling for a range of new taxes and bans on sugar and fat.

the fat tax in Denmark with their “world leading” tax abandoned after fifteen months. Dr Jenkin does not mention this policy in her list of international examples and for good reason. Christopher Snowdon has written a comprehensive report titled “The Proof of the Pudding: Denmark’s fat tax fiasco”.

It examines how a policy went from having almost unanimous parliamentary support to becoming ‘an unbearable burden’ on the Danish people.

The economic effects of the

“Critics say the tax, even at 20%, would have no real impact on health but would financially impact the hardest on poor families.”

A University of Otago report recommended a 20 per cent tax on “sugary soft drinks” which they argue would reduce New Zealand’s obesity problem and save lives. The report’s author, Professor Tony Blakely, said a tax on sugary drinks would be a simple and smart move to fight obesity and related illnesses.

“If you’re thinking of one tax or subsidy on food, then this is it,” Blakely said.

Public health specialist Simon Thornley said New Zealand’s “love affair with sugar is a full blown addiction, complete with binges, requiring increasing doses for satisfaction and finally withdrawal when we kick the habit.” He has also called for “a sugar tax and restrictions on sale, just like tobacco, starting with a ban on sugary drinks and food in schools.”

High-profile media commentator Matt McCarten has written a column also supporting the idea of a sugar tax while former economist Gareth Morgan wants a “fat tax”. Others have gone much further.

Dr Gabrielle Jenkin, an Otago University health academic, is attacking what she calls “Big Food” - companies such as Fonterra, Coca-Cola, Heinz Wattie’s, fast food chains, and Foodstuffs and Progressive supermarkets.

She claims “Big Food” is more powerful than “Big Tobacco”, and will be more aggressive if Government policy turned against it. Dr Jenkin also asserted that a number of research bodies were sponsored by “Big Food” and their “tainted” research was being presented to Government.

Unsurprisingly, she also favours taxes on sugary and fatty foods.

Critics say the tax, even at 20%, would have no real impact on health but would financially impact the hardest on poor families.

They also point to the failure of

Danish fat tax were almost invariably negative. It was blamed for helping inflation rise to 4.7% in a year in which real wages fell by 0.8%. Many Danes switched to cheaper brands or went over the border to Sweden and Germany to do their shopping. At least 10% of fat tax revenues were swallowed up in administrative costs and it was estimated to have cost 1,300 Danish jobs.

The fat tax in Denmark had a very limited impact on the consumption of ‘unhealthy’ foods.

One survey found that only 7% of the population reduced the amount of butter, cream and cheese they bought while another survey found that 80% of Danes did not change their shopping habits at all. This was the largest trial of a targeted tax and demonstrated that “sin taxes” can appear laudable but are often a disaster when applied in the real world.

New Zealand’s Green Party says they “would support an investigation into how a fat tax on processed food in New Zealand’s supermarkets would work.” NARGON does not support that statement because it unnecessarily discriminates against certain shops.

If a tax on fatty, sugary or even “processed” foods would make a difference (and we do not believe it will) then surely the Greens would want it applied to every outlet, including family stores and farmers markets. Sugar is sugar – no matter who sells it. New Zealand doesn’t need a “fat tax”. n

Trina Snow Executive Director NARGON

NEW VENTURE FOR NOSH FOUNDER NOSH founder Clinton Beuvink has launched a new in-home marketing channel which he claims creates the ultimate consumer and brand engagement.

Beuvink’s new business SampleCo is the creator of the BlackBox, a box of full sized products which will be delivered to a targeted segment of a database which is already 35,000 strong. Beuvink describes BlackBox as the ultimate in-home marketing concept allowing the target consumer to try products at home, in the way it will normally be used or consumed.

With a full sized sample, the consumer is able to fully experience the product replacing the incumbent brand for a complete purchase cycle, or in the case of a new product, enjoying an extended sampling period in order to create new behaviour – either brand switching or adoption.

“The concept is unique. Consumers will see the company as seriously investing in the relationship, and will experience the full value proposition of the product. And unlike mass media, marketers will only be paying to reach a very targeted segment of their ideal consumer – it is very cost effective,” says Beuvink.

The additional and vital outcome for manufacturers and marketers is the feedback that the integrated

ROBERT HARRIS GROWS RANGE

Clinton Beuvink

online activity will provide. BlackBox recipients are required to provide feedback on each product via an online survey tool in order to receive the next box.

Manufacturers can include a variety of information in the box, including being able to point the consumer to their preferred sales channel, whether that is retail or online. The BlackBox sampling campaign is now underway, and Beuvink believes the database will hit 100,000 within 12 months. n

ROBERT Harris has been supplying Kiwis with coffee for over 60 years and remains one of the biggest coffee names in New Zealand. In grocery the Cerebos Gregg’s brand is currently number three in both the freeze dried and fresh coffee segments and will enter the fastest growing coffee segment this month with the launch of Café Style Instant Coffee. The premium offering uses Robert Harris’ Fusio as the coffee base and is expected to deliver over $2 million in sales in the first 12 months. Available in five variants – Hazelnut Latte, Toffee Rum Latte, Flat White, Cappuccino and Mochaccino – Café Style is being backed by a $500k consumer campaign which includes tv and instore activity.

The Robert Harris brand is also extending its popular Fusio offering, with Dark Roast

being released next month. The new variant is likely to appeal to consumers who prefer a stronger flavour and is available in 100g tins and 90g refill packs. Launched last year, Fusio continues to drive innovation for the brand, with its unique combination of 85% freeze dried coffee and 15% fresh coffee a market first which has led to over $1 million of sales in the first year.

The brand has also experienced success with its coffee capsules.

Introduced to the segment late last year, Robert Harris currently has over 50% of sales versus the other seven compatible capsules available.

“Sales have quickly ramped up as consumers reach for a trusted brand in the new format. A well priced product that is conveniently available in supermarkets has proved a winning formula,” says Cerebos Gregg’s group brand manager for coffee, Sean Wiggans.

Wiggans says the brand will continue to innovate its current coffee offerings as well as introduce new products to market. n

Scan this QR Code to find out more about the LOSCAM pallets.

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10/12/13 5:57 pm

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I 9

10/02/14 12:21 pm supermarketnews.co.nz

BELL CLOSES DUNEDIN FACTORY

THE BELL Tea & Coffee company will end more than 100 years of tea manufacturing in Dunedin with the closure of its factory this month. Chief executive Mark Hamilton said the cost of earthquake strengthening and other required work, estimated at more than $1 million, meant production in Dunedin was no longer viable. The factory’s 10 staff were offered jobs in the company’s Auckland factory.

Hamilton said BTCC had invested a lot of money in the Dunedin plant and that it had been a tough decision for the company. “Dunedin has been producing Bell tea since 1898 and in that plant since 1924, so it’s been going on a long time with a lot of history,” he said.

DEVELOPMENT HEARING

A PROPOSED Countdown in Vogeltown’s Hori Street is expected to go before an independent hearings commissioner to decide if resource consent is granted. The New Plymouth District Council has received 10 submissions, with the majority against the development and five submitters wish to speak at the hearing. The council has requested more information from developers, Brooklands Development Ltd, with the hearing date to be held five weeks following its response.

Introducing

NON-COMPETE PAYMENT FOR DAVIS

TO ensure former Coca-Cola Amatil chief executive Terry Davis, who stepped down last month, does not work for competitors in Australia, CCA is paying him $150,000 a year for three years. It is part of a total cash payment of $A2.9m in respect of his short term and long term incentives. Davis has been replaced as CEO by Alison Watkins who has worked in senior roles at Graincorp and Berri Ltd.

STAFF CUTS ACCELERATED

GOODMAN Fielder is fast tracking a A$25 million cost saving initiative with staffing cuts being brought forward to the end of the 2014 financial year. The listed food company has attributed deteriorating market conditions both locally and in Australia for lower earnings and delayed manufacturing and supply chain savings.

Goodman Fielder’s revised fourth quarter earnings expectations are now predicted to be 10-15% below the A$180 million estimated. Its third quarter grocery earnings, where its brands include Molenberg, Meadow Fresh, Helga’s and Pampas, were lower than expected due to increased competition impacting price and volume across the portfolio. The company predicts this will continue into the fourth quarter.

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10

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April 2014

FISHERMAN’S FRIEND SHOWS VOLUME GROWTH

FROM LEFT: Ross Green, Phil Hopkins, Kylee Finn

FISHERMAN’S Friend Asia Pacific executive Phil Hopkins was in the country last month visiting the brand’s Kiwi distributors, Stuart Alexander.

Accompanied by Australian senior brand manager Kylee Finn, Hopkins used the opportunity to look at local retail conditions and trends.

With six SKUs ranged in New Zealand, Hopkins says the brand’s three throat lozenge variants performed strongly last year, despite category decline. “According to Foodstuffs scan data, the overall lozenges category was down 3% in volume terms, but Fisherman’s Friend was up 6%,” he says.

While sales for most lozenge brands peak during the winter months, Hopkins says Fisherman’s Friend has steady sales year round and sits across both the health and beauty and confectionery category. The mint offering has been designed to appeal to a wider consumer audience with Fisherman’s Friend set to roll out

a consumer promotion linked to a celebrity later this year.

A new spearmint flavoured mint will be launching across the ditch and depending on its success, the new variant may be launched here early next year. The Fisherman’s Friend range has a three year shelf life, which has been increased to four years with its new ziplock packaging, released locally last year.

Asia Pacific is a valuable region for the UK company, representing 35% of the worldwide business and seven of the top 15 markets. At Fisherman’s Friend for more than 30 years, Hopkins says the sugar free trend has made a lasting impact on the category.

“Sugar free now represents 70% of the market but once upon a time it only accounted for about 30%,” he says.

Fisherman’s Friend is still manufactured by the Lofthouse family in Fleetwood, England and is exported to 120 countries. n

INSIGHT AIDS EXPORTS WITH increasing food safety and quality concerns, the ability for consumers to access independently verified product information at point of sale is boosting confidence in Kiwi exports.

AsureQuality’s inSight brand provides consumers with additional information about product features, which can be obtained by scanning the QR code on the product.

The rigorous process of supply chain assessment to gain an inSight licence allows manufacturers to use the mark to verify the product’s

origin, organic status, environmental sustainability, ethical and animal welfare, and nutritional properties.

AsureQuality’s sales and marketing manager, Mark Inglis, says inSight is providing a crucial point of difference for products in the busy FMCG market.“This is the first type of product mark that is able to address the multiple interests of consumers.”

A number of New Zealand companies have successfully gained an inSight licence and will be exporting branded products over the coming months. n

COUNTDOWN CONFIRMS PORIRUA PLANS COUNTDOWN has put forward plans for a $17 million supermarket in Aotea, which would create up to 80 new jobs. The Porirua City Council has received a plan change application for a 3000 sqm supermarket at 3 Whitford Brown Avenue, Aotea. Adrian Walker, Countdown’s general manager for property, says the company is pleased to have found a suitable site for a full service Countdown supermarket.

“Porirua is growing and we want to help support this growth and provide

a great offer to the Aotea community including competitive prices which we’re always working to deliver for our customers.” Walker says the company can offer a lot to its team including flexible working hours for youth and part time workers, as well as fostering career development and training. “We’ve worked hard to put forward a plan that will fit in with the local community, including a design that complements the site and surrounding area with native trees and landscaping,” he says. n

RAISING THE BAR

IN COFFEE GROWTH

FROM INNOVATION Robert Harris is growing at 12.3%* across total coffee category

52% Market

Robert Harris Coffee Capsules.

Share***

27%

Robert Harris Premium Instant.

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SUCCESS

GOLD MEDAL WINNER NZ COFFEE AWARDS Improvements were made to the Robert Harris Cafe Blend, resulting in a gold medal. In May 2014 these improvements will be made to the entire Robert Harris retail range.

2014 INVESTMENT TO SUPPORT NPD LAUNCHES

$2M

Ratecard Spend

• New Robert Harris Cafe Style (Flavoured Fusio) • New Fusio Dark Roast • Improved roasting for the entire Robert Harris Fresh Coffee range.

“Too good not to share” *Aztec Data TKA, Total Coffee, 6mths, 23.02.14 **Aztec Data TKA, Premium Instant Coffee, 6mths, 23.02.14 ***Aztec Data TKA, Nespresso Compatible Capsules, QTR, 23.02.14

supermarketnews.co.nz

I 11

NEW DIRECTION FOR OBESITY DEBATE Did I recently detect a change in the obesity debate? A change from the hysteria that usually surrounds the issue to something more rational? If I’m right, it will mark a change that won’t be before time.

THE source of my optimism was an article circulated by Fairfax NZ under the heading “Link found between obesity and religion”, which reported on a study which found that Pacific Islanders have a greater risk of being obese if they attend church!

I’ve read stories over the years that try to link obesity with everything from car ownership and TV watching, to closeness to shops, but church-going was a new angle, and I thought it was worth a closer look. So I did some digging, and there it was in the ‘Journal of Primary Health Care’ on the website of the Royal New Zealand College of General Practitioners. Labelled an “Original Scientific Paper”, it was entitled “The association between church attendance and obesity-related lifestyle behaviours among New Zealand adolescents from different Pacific ethnic groups”. The authors were all PhD’s: Ofa Dewes, Robert Scragg, and C. Raina Elley.

The Journal of Primary Health Care is a significant academic publication that writes for GPs, practice nurses, community pharmacists, other primary healthcare practitioners, and patients.

The study said: “Obesity is disproportionately prevalent among Pacific population groups in New Zealand. Lifestyle behaviours of excessive consumption of high energy, unhealthy foods, and inadequate physical activity are risk factors for obesity that can be modified.” The study said the Pacific Island population has the highest obesity rate in New Zealand, with 97% of its community having an

affiliation with Christianity, and said its aim was “to identify and describe the risk factors for and protective factors against obesity among Pacific Island (PI) adolescents who attend church and compare them with PI adolescents who do not attend church”.

To achieve this, the researchers investigated the lifestyle of 2,495 Pacific Island adolescents, at six secondary schools in Auckland, 77% of whom attended a church or other place of worship. The survey was done in 2005, and individual interviews and body measurements were undertaken. Questions included where they had their breakfast and lunch, how many serves of fruit and how many soft drinks and pies they had, what exercise they did, and how many hours of TV they watched.

And what they found was “an association between PI populations affiliated with the church and higher levels of obesity”, and “that church attendance was positively associated with higher levels of body mass index compared with non-attendance”.

Churchgoers were more likely to buy breakfast and lunch from a shop or school canteen than take it from home. The survey also found that those attending church were more likely to have a distorted understanding of healthy eating habits and a limited knowledge of the risk factors for obesity, were significantly more likely to agree (incorrectly) that missing breakfast or lunch is a good way to lose weight than non-attendees, and were less likely to walk or bike to and from school.

It said appropriate weight management interventions were “urgently” needed to reverse the rising burden of obesity and its consequences on Pacific Island communities.

Lead researcher Ofa Dewes, of Auckland University’s Faculty of Medical and Health Sciences, told Fairfax that churches had been used as a vehicle for promoting healthy lifestyles for many years, yet obesity had continued to rise. “What we are doing now is not enough. We need to move beyond this and it’s time the Pacific community stands up and does something about it.” She said she was working with churches to permanently embed healthy cultural expectations and weight-loss interventions into their programmes.

There’s no doubt obesity is a serious public health issue in New Zealand, and, as this study emphasises, there are specific concerns for Pacific Island New Zealanders.

But what was interesting was the difference in tone in the comments by the authors. There were none of the usual calls for bans, taxes, law changes or more regulation.

There were no claims that food and beverage manufacturers are to blame for everything and that they don’t care what they put in their food as long as they make a quick buck.

Instead, the authors talked about people needing help to better understand good nutrition and healthier food choices and exercise, and about the community tackling the issue head-on, to act locally and to encourage people to change the way they were doing things. There were no fingers pointed. The solution talked about personal choices and how to change that.

Obesity is a complex issue and there are many factors the food industry cannot control. There are so many variables, such as what people decide to eat or drink in a given day,

food availability in the home, how much they exercise or are active, their genetic makeup, and so on.

Manufacturers and distributors recognise this and have done so for many years, and have an excellent record of responding to this issue.

They are providing greater choice, smaller portion options, and products with fewer calories. Many FGC member companies have been reformulating products for years, resulting in many hundreds of tonnes of sugar, salt, and fat being removed from the food supply each year.

Depending on the component and product, there are many examples of reformulation in food products ranging from soft drinks and bread to breakfast cereals, dairy foods, and confectionery. Many are also involved in the Heart Foundation’s ‘Tick’ scheme, as well as school and community programmes that promote healthy eating and encourage regular exercise, while beverage companies are part of the voluntary agreement to not sell full-sugar and energy drinks to schools or aim advertising at children.

There are many other options for regulators and communities to consider before looking at extreme policies such as special taxes on ingredients. A one-size-fits-all solution to the obesity epidemic is a distraction from having a discussion about the real changes in lifestyle that have led to the obesity epidemic, and perhaps that’s where we should be looking.

So does the measured discussion of a study of a link between obesity and religion signal a positive change?

I certainly hope so, because the finger-pointing will continue to get us nowhere. n

Katherine Rich CEO, New Zealand Food & Grocery Council

DIGITAL ASSET MANAGEMENT MEDIA asset management company, Images In Space has served the grocery industry for more than 15 years, growing to become one of Australasia’s leading suppliers, managers and distributors of digital assets.

The Kiwi company, based on Auckland’s North Shore, provides imagery, video, audio, production ready artwork, POS merchandising, corporate logo’s and branding as well as promotional activity for various retail markets including the FMCG and wine sectors.

Roughly 85% of the grocery industry is under the Images In Space umbrella, with its clients including the likes of Wattie’s, Nestle, Unilever, Bluebird and Fonterra.

BARRY PYLE Images In

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April 2014

Space’s ethos of continuous systems improvement sees the company working alongside clients and end users to ensure the systems are user friendly and efficient. Its product portfolio includes the iBank and Fetch asset management systems, with the former handling high resolution product images and promotional material while Fetch is Images In Space’s low resolution images and data library. Images In Space’s Generate product is also proving popular with the trade. This digital catalogue creation tool allows marketers to create customised catalogues featuring product data and images. Accessible online anywhere in the world, Generate is particularly valuable for exporters.

The business has also recently developed a system to record nutritional and ingredient data, allergen warnings, nutritional and health claims. The database is set up in standardised formats, with all the

data in individual fields so it can be readily searched.

Images In Space owner Barry Pyle says the company is working hard to get involved in the industry, frequently attending FGC

conferences and events. Pyle also says the team continues to develop a good working relationship with retailers and has regular dialogue with them to ensure the service it provides is meeting the needs of the industry. n

supermarketnews.co.nz

I 13

NEW LAW REFORMS COME WITH A BITE IN JUNE this year, the first provisions of the most thorough update of New Zealand’s consumer and fair trading laws in three decades come into effect.

For the growers and sellers of New Zealand produce, this shakeup will have a big impact on the representations they make not only to consumers, but also to each other.

It affects how we describe our New Zealand-grown produce, and how imported produce is described.

It affects claims of origin, claims of freshness and claims of benefits. It affects any comparative advertising we undertake.

The Act prohibits any ‘conduct likely to mislead or deceive’. This means more than just outright lying.

It also means conduct that leads to wrong conclusions, creates false impressions, leaves out or hides important information or makes false or inaccurate claims.

So, for example, let’s take country of origin labelling. While it’s still voluntary in New Zealand (unlike Australia, where it’s compulsory), any such labelling must be not only correct, but also unlikely to mislead.

And what does ‘fresh picked’ really mean. If customers expect that to mean it was still in the ground (or on the tree) just yesterday, then who can really use this phrase?

The penalties for getting it wrong are significant. For example, under the new Fair Trading Act, the maximum penalty for individuals who engage in misleading and deceptive

conduct, false representations, unfair practices or issues that affect product safety has increased from $60,000 to $200,000. For businesses that breach the law, penalties have increased from $200,000 to $600,000. And individuals who repeatedly break the law will also face banning orders of up to 10 years.

The business of supermarkets and greengrocers affects the business of growers – we prosper if you prosper.

So how do businesses that sell New Zealand produce ensure they keep within the provisions of the new law? By implementing an effective compliance programme.

A compliance programme is an in-house checking system that helps to ensure your business, and your staff, keep within the provisions of the law.

And at a recent United Fresh workshop Simpson Grierson lawyer Paul Stubbs outlined the key features and benefits of an effective compliance programme. An effective compliance programme, he said, requires commitment, effective implementation, monitoring and measuring, and

continual improvement. And it applies not just to your relationship with your customers, but also to your relationship with your suppliers. In other words, everything said above affects not only how you communicate with your customers, but also how you communicate with your suppliers.

Our growers and producers will be paying particular attention to how the new law affects their relationship with their customers and what they can say about their products. We all need to get this right to ensure the market for what we produce is as healthy as the product itself.

Visit www.unitedfresh.co.nz to learn more about United Fresh membership. n

David Smith United Fresh www.unitedfresh.co.nz

MELITTA ADDS TO RANGE

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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April 2014

FOCUSED on delivering a best in class packaging solution for its fresh produce supply chain, Foodstuffs North Island has announced a new joint initiative with Loscam.

The standardised packaging solution includes Loscam’s Active Lock produce crates and innovative rising floor bins and has been designed to reduce produce handling, enhancing the efficiency of in-store replenishment.

The partnership with Loscam is one of many collaborative initiatives

by Foodstuffs NI to streamline supply chain activities.

“Standardising packaging within our fresh supply chain has been a priority for us. We see opportunities to drive efficiency by reducing the amount of different packaging within the network” says Vaughan Grant, general manager supply chain Foodstuffs North Island.

“Our crates and bins will enhance the supply chain process and we see lots of opportunities to bring choice to the wider produce sector over the coming years,” says Loscam’s David Edwards. n

SALESLINK BECOMES OPMETRIX

FROM LEFT: Joe Bolton, Sven Volknandt and Benjamin Schramm

ATTENTION GROCERY SUPPLIERS

FOODSTUFFS NORTH ISLAND & LOSCAM PARTNER

EUROPEAN coffee brand Melitta has released a freeze dried coffee and a 3-in-1 product as the brand looks to provide a more complete offering and significantly increase distribution.

Represented in New Zealand by Stuart Alexander since 2012, the Melitta range has been specifically designed to appeal to Australian and Kiwi palettes.

“Melitta is a premium coffee at mainstream price with tastings of the 100% Arabica coffee comparable to the market leader,” says Stuart Alexander’s country manager Joe Bolton.

The German manufactured range currently plays in the largest segment (instant) and the fastest growing (flavoured) of the $206 million category with an aim to be in every sub-segment. Bolton says whilst instant sales are down 1.3%, the segment remains the largest representing 53% of category sales in dollars. As the category is so competitive, Bolton says it will be a slow build for Melitta but once consumers try the product they are loyal to it.

Melitta’s German based director of export Sven Volknandt and area

sales manager export Benjamin Schramm were in New Zealand last month visiting the company’s Kiwi distributors. Volknandt says the Kiwi market differs greatly to Europe, where there are no premium offerings and the coffee category is mass market.

“Coffee consumption in New Zealand is driven by foodservice with 60-70% of coffee consumed outside of the home. The trend here seems to be more towards beans as you’ve got a lot of small roasters pressing into the retail market,” he says.

Capsules are the biggest global trend at the moment despite only accounting for a small part of the category. “Capsules only represent about 1.5% of the volume sales but it is being given the biggest hype and plenty of shelf space,” says Volknandt.

Volknandt is sceptical about how long the capsule trend will last, with the price per kilo being too high and closed systems restricting consumers from changing brands.

Stuart Alexander plans to drive growth for the Melitta brand through in-store sampling and build consumer demand through Horeca. n

I.T. LINK Limited, the developers of the SalesLink Mobile software, has undergone a rebrand with its company and products now operating under the Opmetrix name.

Managing director Oliver Huggins says the company is growing fast and needed to present the most relevant and attractive image to new markets.

“The Opmetrix brand also reflects the broader nature of our product offering, which has evolved from its origins as a sales data entry tool to a richly-featured mobile sales force automation solution.”

“We are not simply offering a mobile app that enables field teams to sell more and gain efficiencies - it ensures the outcome of each call flows right through a supply chain, so the customer gets the best possible experience.”

Huggins says there will be no impact on existing SalesLink Mobile customers through the transition. n

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supermarketnews.co.nz

I 15

storecheck STORES in the Auckland suburbs of Mt Roskill, Royal Oak and Three Kings were visited this month with the newer build supermarkets scoring

PAK’nSAVE, ROYAL OAK

On a lovely warm Autumn day we pulled into a fairly full car park at Royal Oak’s Pak’nSave. Whilst we got a park easily enough, the parks were quite narrow which made getting out the car a bit tricky. On entering the store my first impression was that the lighting was a bit dim and could be brighter. There were plenty of staff restocking the shelves but no unattended trollies. I thought the shelf edge labels were a bit small, thus a little hard to read. All the shelves were very well stocked and the displays were good and tidy. The sweet corn looked tired; but the meat and deli section looked great. I particularly noted the New York style cut steak. The only thing that was a bit odd was a pallet of small plastic chairs right in the middle of the aisle.

Overall everything was of a very high standard.

COUNTDOWN, THREE KINGS

Not far away in Three Kings was a Countdown store and the first thing I noticed was that the carpark had a confusing layout.

Upon entering the store I noticed that the posters in the window were uneven and some of holders were broken. There was tape holding down some of the lino and the floor was dirty and scruffy throughout the whole store. Most of the store had plenty of Easter Eggs on display. There were a number of out of stocks in the freezers and hot chickens and the fact that Lindauer was on special is the reason why that was low. The checkout staff were very friendly and helpful but there were not enough checkouts open. Unusually, the fresh produce was located at the far side of the store.

NEW WORLD,STODDARD RD

One of the newest supermarkets in the area is the New World on Stoddard Rd. Just a stones throw from Foodstuffs Mt Roskill HQ. Being virtually new means this store was always going to score well, but that’s no excuse for the uneven posters displayed on the windows.

The fresh produce area was superb and made the product look very appealing. So was the range and quality of product in the deli area. A nice display of Easter Eggs looked a bit shabby as it was displayed on cheap looking wooden pallets. Some great hot and cold food items were available. There was an excellent range of bakery products and cakes available. A better exit sign would save a bit of confusion though.

Overall a superb store.

COUNTDOWN,STODDARD RD

Just down the road a near new Countdown. Quite a bit bigger than the New World, it too was always going to score well. I got a warm welcome from the trolley wrangler as I entered the store. First impressions were of a well lit and airy store. I noticed there were two unattended boxes of stock in the pharmacy aisle and three more throughout the store. There were a few out of stocks, notably in the confectionery section and the hot chicken counter. In several sections I

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April 2014

STORE EXTERIOR

Pak’nSave CD NW CD Royal Oak Three Kings Stoddard Rd Stoddard Rd

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

5

4

5

5

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

5

3

4

5

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

5

3

3

5

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

3

4

5

5

STORE INTERIOR

Pak’nSave CD NW CD Royal Oak Three Kings Stoddard Rd Stoddard Rd

• Were your first impressions positive?

(5 pts.)

4

3

5

5

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

4

3

5

5

• Adequately lighting/heating? (5 pts.)

3

4

5

5

• Instore signage clear adequate?

(5 pts.)

5

4

5

5

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

5

4

3

5

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

5

4

4

5

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

3

4

5

4

STORE LAYOUT

Pak’nSave CD NW CD Royal Oak Three Kings Stoddard Rd Stoddard Rd

• Were the aisles wide enough?

(5 pts.)

4

4

5

3

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

4

3

5

5

• Were all shelves clean, neat and tidy?

(5 pts.)

5

4

5

5

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

5

4

5

5

PRODUCTS

Pak’nSave CD NW CD Royal Oak Three Kings Stoddard Rd Stoddard Rd

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

5

4

5

5

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

5

5

5

4

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

5

4

5

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

5

5

highly. Our mystery shopper felt Countdown’s Three Kings store was in need of a refit in order to be competitive in the area.

noticed a seeming over abundance of special tickets that obscured the product behind.

The other thing that stood out was at times it was hard to see the product in the freezers because of glare on the doors. Not many checkouts were open but the young woman that helped me was very chatty and friendly.

Once again today showed how generally speaking we have a very high standard of stores. Three Kings being the exception- it really could do with a refit. n

STAFF

Sign up now for our weekly e-newsletter

www.supermarketnews.co.nz

Pak’nSave CD NW CD Royal Oak Three Kings Stoddard Rd Stoddard Rd

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

4

5

5

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

4

3

3

3

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

5

5

5

4

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

5

3

4

5

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

5

4

4

5

FRESH FOOD

Pak’nSave CD NW CD Royal Oak Three Kings Stoddard Rd Stoddard Rd

• Did the produce look fresh?

PRODUCE (5 pts.)

4

4

5

5

FISH (5 pts.)

4

4

5

5

MEAT (5 pts.)

5

4

5

5

DELI (5 pts.)

5

4

5

5

BAKERY (5 pts.)

5

4

5

5

PRODUCE (5 pts.)

4

4

5

5

FISH (5 pts.)

4

4

5

4

MEAT (5 pts.)

5

4

5

4

DELI (5 pts.)

4

4

5

5

BAKERY (5 pts.)

5

4

5

5

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

3

5

3

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

3

5

3

• Was there a full range of produce?

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

4 3 3 5

• Overall shopper experience (10 pts.) 8

HOW THEY SCORE?

6

9

9

Pak’nSave CD NW CD Royal Oak Three Kings Stoddard Rd Stoddard Rd

Maximum available score: 200 pts 181 152 187

TOP SCORE

186

supermarketnews.co.nz

I 17

h&baisle AUSSIE HAIR REMOVAL SUCCESS

extensive depilatory offering is still predominately manufactured in Australia, something Ismiel is passionate about.

“Quality is more important than anything else but margins are shrinking, especially when you are competing with offshore manufacturing,” says Ismiel. The rise of male products in the category is a new trend, with Ismiel saying 40% of men now use some form of hair removal. Brazilian waxing is another trend which emerged in the 90’s and remains popular.

Ismiel says the category has seen huge changes since she first started Nads when there were limited hair removal options for consumers.

“I care about this category as much as I care about my brand. I created this category and I’ve invested a lot of time and money building it.”

SCHWARZKOPF & CLAUDIA SCHIFFER LAUNCH ULTÎME

FROM its humble beginnings in founder Sue Ismiel’s kitchen more than 20 years ago, the Nads hair removal brand has flourished to become a household name throughout the world. Originally created for Ismiel’s young daughter who struggled with unsightly dark hair on her arms, the Nads range encompasses waxing strips and pottles, gel strips and pottles, hair removal crèmes, facial wands and ingrown hair treatments.

Distributed in New Zealand by Jackel for more than a decade, Ismiel says the Australian owned brand has been so successful because it offers a solution to a common problem.

“Unwanted hair is a universal problem that affects most people,” she says.

With more than 18 skus in the depilatory segment, the Nads brand likes to lead the category with innovative and world first products.

“We’re always looking at where there’s a gap in the market and how we can cater to it. We’re not interested in creating me too products.”

The newest addition from the brand is a world first nose wax for men and women, which comes complete with unique SAFETIP applicator. The product was turned around from concept through to world distribution in the space of just six months.

Ismiel says the brand’s aim to be 100% natural is the biggest point of difference, particularly as Nads is competing against multinationals in the category.

Despite rising costs, Nads’

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GERMAN owned Henkel NZ has released two new ranges under its Schwarzkopf brand that have been developed in collaboration with supermodel Claudia Schiffer.

Schwarzkopf Essence ULTÎME and Blonde ULTÎME are the first hair care ranges from Schiffer and have been incredibly well received by trade.

“I’ve always wanted to design and create hair cosmetics products and Schwarzkopf has given me the opportunity to finally develop my own signature hair line,” says Schiffer.

Schwarzkopf Essence ULTÎME features four hair care ranges – Omega Repair, Diamond Colour, Crystal Shine, and Biotin + Volume – which contain a unique combination of pearl essence, panthenol, refined protein and keratin for strong and shiny hair. The creamy consistency surrounds each hair strand, repairing the hair cells and restoring natural elasticity. Hair surface is refilled and the protective lipid film is rebuilt, resulting in healthy looking hair. The range also features a specially designed high class signature fragrance consisting of 135 ingredients, creating a modern scent with notes of fresh fruit, white blossom, white musk, sandalwood and vanilla.

Containing rich omega oil to rebuild the structure of damaged, depleted hair and prevent split ends, Omega Repair is the hero of the range. The line includes a shampoo, conditioner, intensive mask and a beauty balm.

Diamond Colour has been designed for coloured and highlighted hair and contains Diamond Gloss Serum and UV filter to protect

against fading. Diamond Colour features a shampoo, conditioner, shine boost spray, and illuminating oil.

The Crystal Shine range contains a shampoo, conditioner and finishing oil and works to provide shine to dull and normal hair. The line also includes a heat protecting spray, which can protect hair from styling heat up to 220 degrees.

Designed to provide volume for fine, flat hair is the Biotin + Volume line, containing the biotin-complex and encompassing a shampoo, conditioner, and root-lift lotion.

Schiffer’s colour range, Schwarzkopf Blonde ULTÎME, is a collection of eight blonde skus which include her own personal shade. Featuring a high performance formula with pearl essence, Blonde ULTÎME, provides mult-faceted blonde shades with radiant shine.

“I’m very proud for being able to contribute all my experiences to the development of Schwarzkopf Essence ULTÎME and Schwarzkopf Blonde ULTÎME,” says Schiffer.

MEN’S ANTI-ACNE RANGE

L’OREAL has launched its first anti-acne range designed specifically for young men under the L’Oreal Paris Men Expert brand. Pure Power features three variants - Black Charcoal Wash, Anti-Blackhead Scrub and Active Moisturiserand is being supported with strong consumer advertising. Black Charcoal Wash contains purifying charcoal and menthol and works to fights the five main skin imperfections seen in men including spots and oily skin. Anti-Blackhead Scrub features anti-bacterial salicylic acid and delivers 2000 beads per use to fight against persistent blackheads. Active Moisturiser provides skin hydration while targeting imperfections and reducing excess oil. n

EUROPEAN DESIGN TRENDS EUROSHOP, the world’s leading retail trade fair, was held in Germany earlier this year attracting 109,000 trade visitors from 110 countries. In-Store’s Jill Morrison was at the triennial event looking for innovative products and international design trends for the local retail sector.

Morrison says the biggest shopfitting trend at the moment is towards minimalism, incorporating the use of exposed raw materials like plywood, mdf and metals.

“While there were a lot of simplistic and minimalistic designs on display, colour zoning was another obvious trend,” says Morrison.

Ice beds are a popular feature in European supermarkets, evident in the number and quality on display throughout the five day exhibition.

With clever LED lighting, ice beds enhance the appearance and appeal of fresh fish and produce and add a touch of drama. Wall features were also commonplace, with a fresh fruit display being a standout in ingenuity.

Wall displays can bring a wall to life and attract attention to store destinations. The move towards Product Sliders was a clear trend, apparent across multiple categories including confectionery, produce, deli and frozen.

Morrison says upright facings are gaining in popularity in New Zealand as they are shopper friendly. Popular 15 years ago, humidification systems are making a comeback with the benefit of advanced technology.

Foggers extend the shelf life of produce and deli products by an additional two days and add a sense of theatre to the category.

Electroluminescent displays or e-paper are also increasing in popularity, enabling retailers to change the message and image on the screen.

“72 – 80% of purchases are made on impulse so e-paper can capitalise on those shoppers and grab them at the point of purchase,” says Morrison.

E-paper can be battery or power operated, with four to 12 AA batteries allowing for 60,000 activations.

EuroShop will next take place 5-9 March 2017. n

TAUPO GOES ONLINE

COUNTDOWN has launched a new online shopping service for Taupo and its surrounding areas. Serviced by the local store on the corner of Spa Road and Tongariro Streets, online shopping is now available in Taupo, Wairakei, Acacia Bay and Kinloch.

“Online shopping offers fantastic convenience for our customers and we’re thrilled to be able to extend this service to Taupo. This is another way that we can offer great value to our customers,” says Richard Godden, Countdown’s online operations manager.

PEPSI CHALLENGES COKE

PEPSI is set to launch an advertising campaign featuring 19 international soccer stars including Argentinean forward Lionel Messi and Brazilian defender David Luiz, in a bid to cash in on the hype surrounding the World Cup. The move is unlikely to sit well with rival and World Cup sponsor Coca-Cola. Held in Brazil this year throughout June and July, the once every four years event is one of the biggest occasions for advertisers to reach a global audience.

FOODSTUFFS EXPO NOW IN WELLINGTON

FOODSTUFFS has announced its annual expo will be held at Wellington’s Westpac stadium on the 13th and 14th of August. For the past two years the expo has successfully taken place at the Claudelands site in Hamilton.

This year’s expo will combine fresh and grocery suppliers and is a great opportunity for buyers and sellers to come together. Welcome drinks will be held on the 12th August and a gala dinner will take place on the 13th from 6.30pm to 11pm.

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beer&cider SOMERSBY JOINS INDEPENDENT INDEPENDENT Liquor has added to its extensive craft beer and cider offering with the launch of Somersby cider from Denmark in bottle and can multi-pack variants.

Somersby is the world’s fastest growing cider and joins the company’s BRB, Founders, Samuel Adams, BrewDog, Wild Side, Honesty Box, and Cider House brands.

Beer marketing manger Ben Shaw says the cider category is booming, driven by flavoured 500ml variants while craft beer growth is steady.

“The growth rate is slowing and pricecompetition is increasing but it is an inherently still healthy category with a strong outlook,” says Shaw.

Grocery is the most significant channel for the company’s craft beer and cider portfolios, with Independent Liquor being the industry’s number three and two supplier respectively.

Shaw predicts future craft beer growth will come from premium and mainstream

volume consumers, with IPA continuing to grow in the low and mid-strength variants.

Gluten free and locally sourced flavoured ciders have been the big trends in the cider category, which Shaw predicts will attract more 30+ drinkers looking for sweeter and lower alcohol options.

“This is purely a punt as the category is still in its infancy, the flavour explosion will continue for the next six to nine months and then I expect that packaging innovations and larger single serve variants with more rational claims will find a niche.” n

GROCERY COMPLIANT CIDERS & FRUIT WINES THE CIDER, or more correctly, fruit wine category has exploded in New Zealand over the past four years.

THIS has followed international trends where brands such as Rekorderlig have achieved incredible success in a relatively short period of time. No doubt part of the reason for the growth in fruit wines has been new innovation and variety in the category, transforming a once considered stuffy, traditional product to now include a vast range of fruit variants.

But with growth comes growing pains.

Traditionalists (and indeed the Australian New Zealand Food Standards Code) argue that cider should be just that –a fruit wine made from the juice or must of apples and no more than 25% the juice or must of pears. Others argue it is variety which re-invigorated the category with fruit variants (such as Elderflower-Lime) and this innovation must be allowed to flourish.

Well ahead of their time, legislators also had a hand in shaping New Zealand’s fruit wine category story when they prescribed that fruit wines (as opposed to just ciders) could be sold in supermarkets. This provision now sits in section 58 of the new Sale and Supply of Alcohol Act

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“So a fruit wine can be sold in a supermarket but add even one other ingredient not expressly permitted in the Code for fruit wines and you have instead a fruit wine product.”

2012.

So a fruit wine can be sold in a supermarket but add even one other ingredient not expressly permitted in the Code for fruit wines and you have instead a fruit wine product (assuming it is still at least 70% fruit wine) which can only be sold in bars, restaurants or liquor stores.

So the key question for grocers and for suppliers wanting their products to be sold in supermarkets is- what is a fruit wine for the purposes of Standard 2.7.3 (Fruit Wine and Vegetable Wine) of the Code?

Let’s start with the easy ones – ciders and perries. It is clear that cider (as described above) is a fruit wine and equally clear that pear cider (or perry) is also a fruit wine. A perry (or pear cider, as is the more commonly used term) is basically a cider with the proportions of apple and pear reversed – i.e. a fruit wine made from the juice or must of pears and no more than 25% the juice or must of apples. With both cider and pear cider there is no room for any other fruits. You may still be a fruit wine but you are no longer just a cider or pear cider.

Life gets more interesting when you start adding other fruits on top of the cider as is permitted with fruit wines. This is where a lot of the growth in the category has come from with the likes of Rekorderlig, Orchard Thieves and Old Mout. These products are straight ciders or pear ciders blended with other fruit wines, juices or fruit juice products. They also can include sugars, honey, spices, alcohol and water. Add anything else (including flavourings) and your product becomes a fruit wine product and needs to head off to a liquor store.

Most of the attention focuses on fruit juices and fruit juice products. Fruit juices are defined

by Standard 2.6.1, including rules around reconstitution of concentrates. Fruit juice

products however are not defined. So the bad news is the crux of whether a product can or cannot be sold in supermarkets rests on an undefined term. The good news is, there is general acceptance of the meaning of this termthat it means concentrates, extracts, infusions, tinctures, alcoholates or distillates produced from the specific named fruit or juice. We think that the fruit juice or fruit wine should also be present in the product.

In other words, strawberry extract is a fruit juice product that can be used in a Strawberry and Cider fruit wine. However, using strawberry flavouring instead would result in the end-product being a fruit wine product. The key is that it is derived from a natural fruit or juice and that juice or fruit is what is named on the label as being blended with the cider or perry. So if you are selling something as a strawberry and cider fruit wine, the strawberry notes in it should come from actual strawberries. Common sense really. n

Justin Hall Managing Director of Redwood Cider Co., Justin is on the committee of the Fruit Wine & Cider Makers Association of New Zealand.

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beer&cider ISAAC’S CIDER

LION Nathan has introduced three Isaac’s Cider variants in bespoke 1.25 PET bottles. All with 5% alcohol content, the range includes two former favourites and a comeback winner.

Berry and Feijoa are consumer favourites while Blackcurrant & Manuka Honey returns to the market after initially launching as a limited release during winter 2012.

Isaac’s ciders are only available in New Zealand and are offered in iconic Kiwi flavours to enhance the locally-grown apples. n

MOA’S NEW PALE ALE IN THE craft segment, Pale Ale is the style attracting the most attention and showing strong growth. Moa hopes to capitalise on this growth with the launch of a Pale Ale designed to be more in line with the palette of traditional New Zealand lager drinkers.

Moa’s Sessionable Pale Ale is an approachable, easy-drinking brew, which founder Josh Scott calls a new world style.

“A blend of Crystal and Pale Ale malts complemented by Kohatu, Nelson Sauvin, Cascade and Motueka hops, produces a beer with toasty malt flavours and earthy, yet tropical fruit hop tones”.

The new product sits alongside Moa’s existing Pale Ale, which has already become one of the brand’s top selling varieties.

Sessionable Pale Ale is being offered in a limited release 12 pack, which depending on its success may become a permanent SKU. n

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INNOVATION KEY TO GROWTH

REDWOOD Cider Co. is New Zealand’s leading cider company, marketing and selling a worldclass portfolio of local and international brands including Old Mout, Monteith’s, Rekorderlig and Orchard Thieves. The DB Breweries subsidiary has an extensive offering including 24 different ciders across the premium, mainstream and value segments.

Rekorderlig brand manager, Emma Rock says fruit-flavoured ciders are the strongest segment within the category, which is consistent with global trends. The move towards lower alcohol alternatives is also attracting new consumers with single 500ml bottles being the fastest growing format. “The biggest consumer trend has been a huge influx of newcomers to the category itself, which is currently experiencing growth of 30% year-on-year,” she says.

Redwood’s brands are performing extremely well in this healthy category with its Old Mout, Monteith’s and Rekorderlig labels being the top three brands of all ciders in NZ. Old Mout has been the innovator of the category with inventive blends of fruit wines with cider bases while Monteith’s Crushed Apple continues to set the standard in classic apple style cider. Rekorderlig has led consumer interest in the fruit-flavoured trend over the last 18 months and has cemented the amber 500ml bottle as a ‘cider bottle’. Redwood’s newest entrant Orchard Thieves is offered in two variants- Mandarin & Lime and Raspberry & Vanilla - and has been well received by consumers.

Rock believes innovation is the key to future growth as well as the need to change consumer perception. “Innovation has appeared to come in many forms; from flavours to formats, drinking occasions and the new cider consumer. Its appeal has spread far and wide very quickly, which is why there is such opportunity to create offerings for a wide range of tastes and preferences.”

Rock says Redwood Cider is well positioned to drive category growth and innovation. “Having a dedicated team focused on cider means we can give our full attention to drive the category in line with its current rate of growth; and continually look for new ways to get cider into people’s hands.” n

ALCOHOLIC GINGER BEER BRAND Evolution’s Ranga label has been on the market for just over two years and now has three products in its range; alcoholic Ginger Beer, alcoholic Lemon, Lime & Bitters and Blackcurrant & Apple cider.

CRAFT BEER TO FOLLOW U.S MCCASHIN’S Brewery has the Stoke beer and Rochdale Cider brands in the category and have been manufacturing since the early 80s. The family owned brewery produces a range of craft beer that reflects its history and growth, with its distinctive offering including the Foundation, Recognition, and Bomber ranges. Scott McCashin says the Foundation range has attracted new consumers to the segment and attributes strong category growth to the investment of large suppliers.

McCashin predicts the local market will continue to follow the U.S, with consumers moving towards single bottles and more extreme taste profiles.

“They (U.S.) have a vibrant craft beer movement based on brewers’ creativity in moving the boundaries and constantly pushing the envelope

“We decided to launch Ranga when we saw the alcoholic ginger beer market taking off overseas and we knew it was destined to make to it big on these shores. As ginger beer is an old favourite for most Kiwis, we knew it would be a huge hit here,” says Brand Evolution’s Chris Durney.

Since its introduction to the market, Ranga’s alcoholic ginger beer has been joined by other brands and is now a segment seeing strong growth.

As ginger beer can be produced in multiple ways with varying taste profiles, Durney says the company worked hard to achieve an authentic taste.

Another Antipodean favourite, alcoholic Lemon, Lime & Bitters followed shortly after and was the first naturally fermented version launched in the world. Ranga’s newest addition Blackcurrant & Apple cider has also been well received by consumers, picking up a silver medal at the national cider awards.

“From what we’ve seen overseas, particularly in the Australian and UK markets there is plenty of growth left in this new category,” says Durney.

Ranga continues to be at the forefront of innovation and has more unique products in development. n

with the ingredients used and packaging designs,” he says.

McCashin says consumers are looking to support beer produced by NZ owned and operated breweries and that manufacturers must keep up with the changing consumer tastes.

“When we produced Macs in 1981, the beer was considered extreme flavor wise and took some years to even sell any volume that might make a viable business. Now those same recipes that introduced the market to a craft beer would be considered mainstream and bland.”

The company has started to push the boundaries with its Stoke brand, using festivals to promote more extreme beer. An example of this was at Marchfest where head brewer Sam Wilson made beer in a barrel with no instruments to measure ABV, similar to how it would have been made 150 to 200 years ago. “The beer was polarizing but it pushed the boundaries and that is how we will continue to innovate,” says McCashin. n

LIQUOR ACCOLADE TO GROW BRANDS AUSTRALIAN wine company, Accolade Wines, has acquired a suite of award-winning Kiwi brands including the Mud House, Waipara Hills, Dusky Sounds, Haymaker and Skyleaf labels. Accolade plans to use its global reach to grow the brands with the deal, which also incorporates the operation of Waipara Hills’ cellar door and café, finalised early this month.

Accolade’s Asia Pacific general manager, Michael East, says the purchase is in line with the company’s global strategy of delivering a full service new world wine proposition across the value, mid-market and premium categories.

“These brands are outstanding and cover varietals from key regions such as Marlborough for sauvignon blanc, Central Otago for pinot noir and aromatics from the Waipara Valley including riesling and pinot gris,” says East.

The New Zealand team will be retained and headed by MJ Loza along with key personnel including winemakers, viticulturalists as well as existing growers and suppliers. n

WINE HARVEST STARTED NEW Zealand’s 2014 grape harvest is underway with expectations this year’s vintage will provide a further boost to wine exports.

Kiwi wine exports are up 5% to a record $1.27 billion on the back of the 2013 harvest, with New Zealand Winegrowers CEO Philip Gregan predicting the total to exceed $1.3 billion by June. Ideal growing conditions through summer and into early autumn saw the harvest started earlier than in recent years and will end in early May. n

SA WINE IMPORTED DENO Group is bringing the South African wine brand Rooiberg to the Kiwi market. The extensive offering is available in more than 10 variants and include merlot, cab sav, sauvignon blanc, chenin blanc, chardonnay and sparkling wine varietals.

Rooiberg’s range also features a low kilojoule sauvignon blanc and a nonalcoholic grape juice. n

VILLA MARIA PINOT SUCCESS

2014 VINTAGE BOTTLED WITH this year’s grape harvest coming in weeks before expected, New Zealand’s first 2014 sauvignon blanc has already been bottled and is ready for drinking. Moana Park winery’s Crush Pad label is believed to be the first on the shelf from the much-anticipated 2014 harvest.

Winery owner Dan Barker says low rainfall and ideal weather conditions have contributed to the quality of this year’s grape harvest.

“The 2014 harvest has come on several weeks early for us here in Hawke’s Bay on the back of a moderate, steadfast summer,” says Barker.

The winery, which made nationwide news last year when it lost $165,000 of merlot to vandals, appears to have left the trials of 2013 behind with this early sauvignon release. This year’s Crush Pad Sauvignon Blanc has been dry-farmed, which means no irrigation, equating to a reduced impact on the environment in the area. n

DEUTZ EASTER SHOW WIN

MISSION ESTATE A PINOT PIONEER

DEUTZ Marlborough Cuvée Blanc de Blancs 2009 has been awarded the Champion Sparkling Wine Trophy at the Easter Show Wine Awards, held in Auckland last month.

The award-winning 2009 vintage was chosen as the best in its category by renowned Australian wine judge Mike DeGaris alongside a panel of Kiwi wine experts.

The company also took home two silver medals for its Deutz Marlborough Cuvée NV and Deutz Marlborough Cuvée Rosé 2008. The Deutz Marlborough Cuvée range is the unique result of a winemaking partnership started in 1988 with the prestigious House of Deutz in Champagne, whereby Deutz Marlborough Cuvée marries the best of New Zealand grapes with traditional French Champagnemaking techniques. n

HAWKES Bay winery Mission Estate is celebrating 50 years of pinot noir production, with claims it was one of the first to plant the grapes in New Zealand.

Established in 1851, Mission Estate has pioneered many winemaking innovations in its long history, including the planting of pinot vines at its Taradale vineyard in the 1960s. The company relaunched its pinot noir offering in the early 2000s under direction from chief winemaker Paul Mooney, with the varietal growing in the past decade to represent a tenth of Mission’s wine production.

Mission Estate purchased the iconic Cape Campbell vineyard in the Awatere Valley last year, releasing its first pinot crafted from its own grapes this month with the launch of 2013 Vineyard Selection Marlborough Pinot Noir. Vibrant in colour, Mission’s VS pinot is a medium bodied wine with complex earthy notes. n

A VILLA Maria pinot noir has collected three trophies at the Sydney International Wine Competition including Best Pinot Noir, Best Red Wine of Competition and Reserve Champion Runner Up to Best Wine of Competition.

The trophy winning wine was a 2010 Single Vineyard Southern Clays Marlborough Pinot Noir, which also picked up a blue-gold/Top 100 medal.

Villa Maria was awarded two other blue-gold medals for its 2013 Marlborough wines Cellar Selection Marlborough Sauvignon Blanc and Reserve Wairau Valley Sauvignon Blanc. n

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NEW NEW ENERGIZER BATTERY ENERGIZER Max has redesigned its innovative battery offering featuring Power Seal Technology to protect from leakage of fully used batteries in low-drain devices for up to two years. Power Seal Technology also works to lock in power and can hold power for up to 10 years when not in use. The new addition is available in a four pack of AA alkaline batteries. n

EASTER GINGERBREAD

GOURMET gingerbread manufacturer Molly Woppy has released Nice N Iced, a limited edition collection of shaped gingerbread.

The Easter themed shapes include bunnies and eggs and are available in a 130g pack. n

TASTY POT ADDS SOUPS

CHILLED convenience manufacturer Tasty Pot has added two new flavours to its soup offering, launching Pea & Ham and Tomato & Basil in 400g microwavable pots.

The soups are handmade from natural ingredients, with each pot containing at least two portions of vegetables.

The company’s three existing soup variants have also been repackaged into the convenient heat and eat tubs. n

LINDT ADDS SUBLIME MINT

DKSH has increased its chocolate offering with the introduction of Sublime Mint under its premium Lindt label. Featuring a layer of mint coulis on a soft vanilla truffle bed and encased in rich dark chocolate, Sublime Mint is available in 100g packs. n

READY FRESH FROM T&G TURNERS & Growers have launched an innovative new fresh produce offering called Ready Fresh. The convenient meal sized packs contain locally grown, pre-cut vegetables and are available in single and multivegetable options.

Created in response to consumer demand for healthy produce, Ready Fresh provides a convenient fresh alternative to frozen products and has been endorsed by 5+ A Day. The full Ready Fresh range includes diced onions, sliced potatoes, roasting potatoes, carrot sticks, essential pack, cooking mix, oriental pack, BBQ pack, Italian pack, stew pack, roast pack and a stir fry mix and is likely to change seasonally. n

EQUAL REBRAND NZ SUGAR’S Equal Stevia range has been rebranded under the Naturals by Equal label and comes complete with a chic new look. The 100% natural sweetener responds to the demand for low-calorie, natural sugar-alternatives and is made from extracts of the Stevia plant and other fruit sugars.

Containing 97% less calories than sugar, the Naturals range features New Zealand’s first crystallised sweetener. Crunch is new to the NZ Sugar’s offering and combines the texture of sugar with a resistance to high temperatures, making it a great substitute for sugar in baking and cooking.

“We’re excited about this new direction for Naturals, signifying our move towards more natural ways, and offering consumers choice of their preferred sweetener,” says senior brand manager Tracey McKay. The Naturals brand is available in four formats; a box containing 40 single serve sticks, spoon for spoon granule jar 40g, crunch granule 250g pack and a convenient dispenser of 200 tablets. n

NEW CEREALS KELLOGG’S has reformulated its popular Special K product with a new three grain recipe containing fibre and protein. The new formula includes added wholegrain oats, contains around 15% less sodium and will be used across all varieties of the Special K range. It is the first time in the brand’s local history a recipe adjustment of this nature has been implemented. In Australia, Kellogg’s has launched a new highfibre variation which combines bran twigs and muesli. All-Bran High Fibre Muesli contains rolled wholegrain oats, pepita seeds, fruit pieces and twigs and is being offered in three variants – Apricot & Almond, Summer Fruits and Cranberry & Pink Lady Apple. All-Bran High Fibre is available in resealable 450g packs. n

TISSUES FOR MEN

KIMBERLY-Clark has launched a new facial tissue targeted at men from its Kleenex label. Kleenex Mansize are 47% bigger than standard tissues and come packaged in sleek black and grey boxes. Sold in double packs, each pack contains 50 strong tissues. n

LIMITED EDITION KISSES

MAGNUM has released a limited edition range of ice cream minis called Kisses. Offered in five variants – Crème Brûlée, Meringue Et Fruits Rouges, Tiramisù, Tarte Aux Pommes, and Gâteau Au Chocolat- each box contains six stick ice creams. The Unilever brand has been supporting the new products with route signage and billboards. n

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

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NEW DILMAH TEA CAPSULES

DILMAH has introduced tea capsules into the New Zealand market in Earl Grey and English Breakfast variants.

Compatible with Nespresso machines, the capsules are a quicker alternative to traditional tea bags, producing a perfect cup of tea in 30 seconds.

The convenient and easy to use capsules are the latest from the Dilmah Single Region range, with tea leaves carefully handpicked in renowned tea-growing regions of Sri Lanka. The foil-wrapped capsules retain the same freshness, flavour and high quality characteristics for which Dilmah is renowned and are available in packs of 10. n

SAN REMO’S NEW PRODUCTS

IN Australia two new products have joined San Remo’s gluten free offering with CousCous and Egg Tagliatelle added. The new products are gluten, dairy and yeast free and complement the brand’s existing gluten free offering of fettuccine, macaroni, lasagna, penne, spaghetti and spirals. n

MOISTURE MATCH LAUNCHED

L’OREAL Garnier’s label has expanded its skincare line with the introduction of the Moisture Match range. Designed to cater for all skin types and problems, Moisture Match features four collections - Goodbye Dry, Protect & Glow, Start A Fresh and Shine Be Gone. Goodbye Dry contains an Ultra-Hydrating Rich Cream enriched with camellia oil and Gentle Make-Up Remover Wipes. Protect & Glow is designed for normal skin types and consists of an Illuminating Light Lotion with SPF20 and a Radiance Boosting Scrub with citrus and moringa extract.

Start A Fresh suits normal to dry skin and includes a Light Softening Cream with blue lotus extract and Refreshing Make-Up Remover Wipes with cleansing milk and grape seed extract. Formulated specifically for combination-to-oily skin, Shine Be Gone contains a Mattifying Fresh Cream featuring green tea extract and an Anti-Shine Cleansing Gel. With distinctive pastel packaging each collection has its own identify and great on-shelf impact. n

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MAGGI MEAL IDEAS

MAGGI has increased its seasoning range this month with the release of Best Ever Beef Burgers. The new recipe base serves four and contains no added MSG. The Nestle brand has also been updated to feature new eye catching packaging. n

GRAVITY’S NEW PACKS

NIVEA’S CC CREAM

BEIERSDORF has added to its Nivea brand with the launch of a new skincare product combining anti-aging properties with colour correction. Nivea Q10 Plus CC Cream works to make skin appear younger in four weeks and contains co-enzyme Q10, supporting skin cells’ own energy source for natural repair.

Featuring SPF15+, Nivea’s new addition hydrates and protects skin while correcting colour. n

WHITENING TOOTHBRUSH COLGATE-Palmolive has introduced a revolutionary toothbrush with built-in whitening pen under its successful Optic White label.

The groundbreaking product contains the same whitening ingredient used by dentists with its formula working to whiter teeth in just two days. Specially designed with polishing bristles and stain removers, Colgate’s new toothbrush includes a whitening pen, stored inside the brush. n

GRAVITY Coffee’s distinctive purple packs are now sporting a new modern, fun and energetic look.

The Bell Tea & Coffee company

has also added Expresso Love Plunger Grind to the range and Morning Fix is now available in whole beans.

Gravity’s coffee blends are available in 200g packs. n

NEW FANTA PRODUCTS

COCA-COLA Amatil has expanded its Fanta offering in Australia, launching a Strawberry Kiwi variant and low-kilojoule Fanta Orange. The introduction of Strawberry Kiwi brings the Fanta range to seven, with the new tangy flavour available in 1.25lt bottles and 200ml mini cans.

Fanta Zero Orange delivers on Coca-Cola’s promise to tackle the growing obesity issue, offering consumers the core variant in a lowkilojoule version. n

SODAS FROM LION LION has launched a range of non-alcoholic sodas with natural flavours and less than half the sugar of standard soft drinks.

Höpt Sodas contain real hop extracts and are offered in Salted Lychee, Pear & Basil, Watermelon

& Mint and Elderberry & Herb. Höpt Sodas are being launched exclusively in New Zealand through on-premise and have been crafted by a team in Auckland, Tokyo and Melbourne. n

PREMIUM AGED BEEF

SILVER Fern Farms has launched a new retail range of premium aged beef cuts, supported by the science-backed Eating Quality System. Guaranteeing consistently high quality beef, Silver Fern’s new grass-fed beef offering carries the company’s Master Grader’s promise of taste, tenderness and juiciness. The grading process has been scientifically developed to determine taste preferences and then matched with animal data to guarantee premium quality red meat.

Aged for 21 days and naturally lean, the range includes Tenderloin Eye Fillet, Porterhouse Steaks, Prime-Cut Roast, Medallions and Stir-fry in 300 and 350g packs.

Vacuum-packed for freshness and convenience, each cut is sealed in juices and flavour to allow the beef to age and

tenderise in the fridge for up to 30 days. Silver Fern Farms’ general manager marketing, Sharon Angus, says the range is bringing authenticity back to the red meat cabinet.

“We knew we had to deliver something special to meet premium beef buyers’ expectations - a new guarantee of quality and level of consistency not seen before. Beef is such a frequent, mainstream purchase, often producing some pretty average meal experiences that we needed to remind beef lovers of just how extraordinary a great cut of beef can be. Then we had to make sure we could deliver that same high standard time and time again,” says Angus.

Angus says in creating the range the company embarked on extensive consumer research in New Zealand and America on over 97,000 samples of beef by 13,900 consumers. n

SUNNY HILL KUMARA CHIPS NUTRITIOUS Foods has released three new kumara snack chips under its Sunny Hill brand. Original, Salt & Pepper and Sweet Chilli kumara chips fill a market gap and meet the increasing consumer demand for healthier and affordable premium chips. The Sunny Hill range is gluten free and contains no artificial flavours, colours or preservatives and is offered nationally in 120g and 40g packs. Featuring fresh and striking packaging, Original and Salt & Pepper reflect classic Kiwi favourites, whilst Sweet Chilli is a blend of natural sweetness of kumara with an exotic sweet Thai chilli. n

PECKISH ADDS TO $20M BRAND PECKISH is capitalising on its brand strength with the launch of Peckish Rice Snackers in four variants - BBQ , Pizza, Cheese and Sour Cream & Chives. Handled locally by DKSH, Peckish is a $20 million brand growing at 30.9% (MAT to 02/03/2014).

SPORTS TAPE LAUNCH EBOS Healthcare has released a range of sports strapping tapes and bandages under the d3 brand. The d3 range consists of the brightly coloured Kinesiology Tapes, Rigid Strapping Tape, Cohesive Bandages also in a range of colours and a Light Rip White Adhesive Bandage. Craig Dowd Ex All Black is the creator behind the d3 range. n

Offered in a 100g box format, Peckish Rice Snackers are predicted to drive growth through innovation and point of difference in the sluggish flavoured snacks market. n

NESCAFE’S NEW AZERA

NESTLE’S Nescafè label has introduced Azera, which combines premium instant coffee with finely ground, roasted coffee beans for a fullbodied taste and rich aroma. The new range comes in four different variants with its Smooth and Intense flavours sold in 85g while its Cappuccino and Latte offerings are available in eight sachet packs. The launch is being supported with consumer advertising and in-store activity as part of the multimillion dollar Nescafè above the line media spend. n

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CREATION SUBLIME MINT

Red Chair Low Alcohol Low Carbs Sauvignon Blanc

Rooiberg Merlot Reserve

Contact

DKSH NZ Phone 06 356 5323

Rooiberg Non-alcoholic Grape Juice

Rooiberg Sparkling Brut

Rooiberg Chardonnay

Rooiberg Chenin Blanc Rooiberg Cab Sav

Rooiberg Chiraz Reserve

Rooiberg Sauvignon Blac

Dèno Group Limited, 18C Arklow Lane, Stanmore Bay www.denogroup.co.nz Phone: 09 4247377 Mobile: 027 347 1577

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Grow your Premium Filled Blocks segment by introducing a new indulgent recipe.

Sublime Mint – A luxurious layer of mint coulis on top of a soft vanilla truffle bed scattered with crisp pieces of cocoa nib, all encased in rich dark chocolate

The Rooiberg Range Of Wine Is Now Available In Nz.

soul offers a new concept in carbonated drinks,

To order contact your Stuart Alexander Territory Manager on 0800 225 417 today.

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by “borrowing” some of the delightful combinations of the world’s most popular cocktails and applying them to our refreshing and indulgent sparkling drinks.

Treat your customers to refreshingly unique, sparkling sophistication in a bottle!

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d

LOTTE SWEET SNACK RANGE EXTENDED

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®

Lotte Sweet Snack range has been extended to include their internationally renowned Kancho & European Waffles.

Kancho is a crispy biscuit button filled with a choco-cream while the Waffle is a buttery crisp biscuit which can be enjoyed on its own or served with an ice-cream dessert. Both available in an affordable, impulse buy pack size.

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sports strapping

New Zealand’s popular sports strapping tapes are available through your Topline Marketing representative. www.toplinemarketing.co.nz Phone: 09-419 4061

For more information on LOTTE products contact: ORIENTAL MERCHANT (NZ) LTD Tel 0800 10 33 05 Fax 0800 10 33 11 Email: nzenquiries@oriental.com.au Website: www.oriental.com.au

THE ATHLETES CHOICE www.d3tape.com

COFFEE HAS EVOLVED

Fresh Meal Ideas

NEW

NEW!

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MADE WITH PREMIUM INSTANT COFFEE & FINELY GROUND BEANS

ckaging

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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.

FINE FOOD A LAUNCH PAD FOR ARTISANS

DESPITE its infancy, artisan gelato and sorbet producers Zelati are creating a buzz in the retail sector, securing ranging in selected New World’s, Moore Wilson and Farro Fresh stores.

Launched at the Wellington Food Show last year, Zelati founder Alberto Tuason is hoping a successful showcase at Fine Food NZ will open the door for further retail expansion.

“Securing a distribution partner in Auckland would be fantastic. We are also looking forward to seeing what other companies are offering and hopefully coming back with some fresh ideas,” says Tuason.

Filipino Tuason was exposed to the food industry from a young age with his father owning a fine dining restaurant in Manila.

After migrating to New Zealand 20 years ago to work in the IT and corporate sector, Tuason reconnected with his love of food during a chocolate making course in 2007.

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Inspired by the experience, he travelled to Bologna in Italy to pursue the art of gelato making. Whilst in Italy’s gastronomy capital, Tuason mastered the craft of gelato making at Carpigiani Gelato University where he gained hands-on training, worked alongside renowned Italian gelato connoisseurs and eventually graduated as a Maestro Gelatiere.

This education, Tuason says, was invaluable to his understanding of what makes the best gelato stand out from the pack.

“Wandering the cobblestoned back streets to sample the local gelaterias of Florence, Modena, Bologna and Rome, I discovered the best gelato and sorbetto are made only by a select few who create them from scratch using real ingredients instead of premixed powder or paste, which usually contain artificial flavouring, colours and preservatives.”

“I brought back to New Zealand this intimate knowledge, skills and passion to make a true and uncompromising gelato and sorbet from scratch using select, fresh, real and gourmet quality ingredients.” Tuason says brightly coloured gelatos are usually made with a pre-mix and have artificial flavours, whereas natural, hand-made gelato mixes produce a much darker concoction.

Late last year, Tuason put the knowledge and skills he picked up in Italy to use, opening a production facility in Tawa where he manufactures a range of gluten, egg and gelatinefree gelatos and sorbets under the Zelati brand.

The strong consumer response encouraged Tuason to open a gelato parlour, which now forms an integral part of its factory.

Now that Zelati is firmly established in Wellington, the company is looking to capitalise on its high-flying entrance into the market and believe exhibiting in front of thousands of industry buyers at Fine Food NZ is a perfect platform to expand its reach.

Fine Food NZ will feature a range of artisan producers in 2014 including Zany Zeus, Kako Chocolate and Lasco to name a few.

RELISH THE THOUGHT

KATHY Lambert and Rachel White have been making high-quality preserves for more than eight years under the Relish The Thought label. Earlier this year, the brand collected a Cuisine Artisan award for its Mandarin & Cointreau Marmalade, resulting in increased interest in Relish The Thought’s condiment offering.

“We have had great feedback from people who already know our products, and also enquiries from people and businesses wanting to find out more. We have also met some other amazing artisan producers and have been combining our products in interesting ways,” says White.

Relish The Thought’s extensive range encompasses 29 sweet and savoury products and is handmade in small batches from a commercial kitchen in Albany on Auckland’s North shore.

The company philosophy has always been to create the best quality products, with produce sourced locally. Eggplant Kasundi is the hero of the range and can be used as an accompaniment for yoghurt, cheese and vegetables.

Already stocked by Farro Fresh, Moore Wilson and specialty food outlets, White says while further retail distribution is a goal; it won’t be at the expense of quality. “We are growing all the time but still want to maintain our artisan approach. Being seasonal producers has its challenges, and educating the public about the availability of produce seasonally is part of what we do.” White says consumers are behind the artisan trend, driven by increased awareness about where and how food is manufactured.

“Customers like to know that the food is made in small batches, and that the process is not rushed, thereby giving better taste. We don’t use any thickeners or artificial flavours or colourings, and that is important to a lot of people. It’s also a bit of a nostalgia thing – making things by

hand the way it used to be done.” Relish The Thought has come a long way from its farmer’s market beginnings but has worked hard to retain its artisan credentials.

“While our business has experienced growth in recent years, our principles and methods remain unchanged.”

For more information visit www.relishthethought.co.nz

QUINA FINA

AWARD-winning tonic water Quina Fina was founded by Alex Gledhill in 2009 after a series of visits to Loja in Ecuador. Home to the Cinchona tree, Gledhill researched the feasibility of using the original endemic bark as the main ingredient in an authentic tonic water offering. This research led to the establishment of the Quina Fina brand, which now includes a tonic water, bitter lemon and extra bitter tonic water.

Quina Fina’s tonic water has been well received by consumers and critics, collecting Cuisine’s Supreme Artisan award last year.

“It’s given us both a huge boost in awareness and validated the brand in market. Getting independent review is invaluable to us and we’re thrilled to have received the accolade,” says Gledhill.

Stocked by Foodstuffs for the past two years, the Quina Fina offering is gaining traction in the retail sector and was picked up by Progressive in November. “We are experiencing large growth in our off-premise market, grocery in particular.

We built our brand behind the bar, and it’s great to see this be translated into supermarket shelves around New Zealand, giving better access for our customers,” says Gledhill.

Gledhill says the range is a breath of fresh air in a category that has been largely forgotten with limited consumer choice in the mature non-alcoholic market. “We have a premium offering produced in an ethical way that is not price prohibitive, this ticks a lot of boxes for both the modern consumer and the retailer.” Gledhill says there is space in the retail sector for artisan producers who are offering unique, high-quality products.

“Big-brands have become too dominant which turns into a narrow range on the self, and less choice.

Artisans offer something special, where consumers can make a closer connection to provenance and ingredients. We hope and predict this is not a trend and is here to stay, as food awareness in market is extremely important to producing quality products.”

The Quina Fina range is currently exported to Singapore and Australia with negotiations underway to export into the U.S. For more information visit www. quina-fina.com

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.

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NZ Association Convenience Stores Golf Day

lastword

Peter Mitchell

THIS mate went to a Blues match at Eden Park the other day for the first time in years and was staggered that the cost of entry was $45. He told the gatekeeper that he could get a woman for that. The gatekeeper smiled and said: “Not for 40 minutes each way, a brass band and a meat pie at half-time…”

IT’S interesting that despite all the complaints that reps can sit for hours in those supermarket waiting chairs to see a manager or buyer, there’s not many prepared to put their names to the problem. Some say you can’t even go to the toilet because if you blink, you lose your spot. Not all the stores are that bad, but some are shockers.

LOVED that story about the Carolina mountain man who was drafted into the US Army. On his first day he was issued with a comb and in the afternoon, the Army barber shaved all his hair off. On the second day he was issued with a toothbrush and then they removed eight teeth. On the next day he was issued with a jock strap.

The Army has now been looking for him for 17 years.

REGULATIONS are oddball things. It always seems strange that the grocery industry has to label everything to death, with even more stringent rules ahead, yet the foodservice industry at restaurant and café level doesn’t have to do a thing in its food presentation. We label everything on the shelf with its contents down to the last mg yet have you ever seen this on a restaurant, café or pub menu where people happily eat everything

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on their plate without a skerrick of knowledge of what’s in the meal.

THE recent Auckland symposium run by the food police academics at the local university attracted a number of high profile local and international speakers all of whom wanted sugary drinks banned. The single focus of the event was on sugar sweetened beverages and seemed like a vendetta against the like of Coca-Cola and Frucor, amongst others. The food and beverage industries does recognize obesity in the population but these probable crackpots have never taken any of the opportunities offered to talk to the industry and just don’t seem to get the message that our industry has taken huge steps to offer reduced sugar and alternative products in recent years.

EVERYONE loves a good Irish story. Paddy says to Mick: Christmas is on a Friday this year ..” Mick says: “Let’s hope it’s not the 13th ..”

THE Foodstuffs North Island merger went live on March 31 – another step in the development of the industry. One of the interesting aspects is the upcoming moratorium on price adjustments, new promotions and new product launches for the four weeks before the go-live date of the new SAP system – and for two weeks after. This moratorium applies from Monday May 5 to Sunday June 15 to ensure a stable environment to migrate and integrate the existing systems into the new programme. So the message to suppliers is back off and don’t stuff it up.

A STRONG time for Woolworths Australia and New Zealand with the group sales for the first six months to January 5 (excluding petrol) up 5.8% to $28.2 billion.

The figures this time didn’t break out New Zealand but it did show online sales have now reached a billion. This all shows the beauty of a population where Woolworths sales alone for a quarter equal the entire annual New Zealand grocery sales. But spare a thought for Countdown’s former gm of merchandise Murray Johnston who was seconded to the Masters hardware operation that is currently losing millions.

AND quote from someone for the month: We are here on earth to do good unto others. What the others are here for, I have no idea …

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