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conveniencemeals
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PROMPTING BREAD INNOVATION Established in the Wairarapa in 1942, Breadcraft has always had a passion for doing things differently. During its 75 years, much has changed, but its commitment to good, honest ingredients, great taste, value and innovation remains the same. While in the past the bread industry has followed trends, Breadcraft aims to identify and drive trends with its latest innovation – Rebel Bakehouse. With consumer’s becoming increasingly concerned with health and the environment, Rebel Bakehouse is focused on using the best of what New Zealand has to offer to give Kiwis healthier alternatives in the bread aisle. “We believe people want healthier, more sustainable options – food that is good for them and good for the environment.
This is where Rebel Bakehouse comes in – we believe alternative proteins (like cricket and hemp) are incredibly important,” said Chris Peterson from Rebel Bakehouse. The brand’s new range features four alternatives; purple corn, spinach, hemp and cricket flour, with plans for more innovative products on the way. The business harnessed new technology and equipment to create the best wraps possible. The result is a highquality product with a fluffier texture. “We’re excited to introduce crickets and hemp to Kiwis - already, more than 2 billion people around the world eat crickets and hemp is one of the few sources of complete protein for plantbased eaters. I hope that by introducing hemp and crickets into foods we eat every day – wraps – we can spark some
VAPING BUSINESS SECURES COUNTDOWN
conversations about how we can reduce our environmental footprint.” Breadcraft began developing Rebel Bakehouse a year ago in response to changing consumer demands. “We are
The largest Kiwi-owned vaping business Alt has secured a supplier agreement with the Woolworths Group that will see its products stocked in Countdown stores. The co-owners of vaping companies Alt New Zealand and Vapo, Ben Pryor and Jonathan Devery, said that getting into Countdown confirms their dominance in the New Zealand market for both their devices and e-liquids. “We’ve been supplying Pak’nSave, New World, and Four Square businesses for some time. To now also have Countdown on board
excited about the future and leading the way – particularly with our cricket and hemp wraps – but are always on the lookout for the next innovation, or next hero ingredient.” n
with Alt is excellent news for our Auckland-based business and highlights the momentum of the industry,” said Pryor. “Last year we launched Alt which has been exceptionally well received by customers to date. Alt has a focus on price accessibility with discreet devices that emit significantly less vapour which has proven popular.” Getting into Countdown is timely for the two Kiwi entrepreneurs given big international tobacco is on their tail, now bringing their own vaping and e-cigarette products into New Zealand. n
GULL SET FOR SOUTH ISLAND Gull has announced plans to open six petrol stations in the South Island in the next two years. The first site is set to open in July in the South Island town of Maheno on State Highway 1, just south of Oamaru. Gull New Zealand general manager Dave Bodger said that the new station would be an unmanned site with pay-atpump facilities. "We have been inundated with thousands of
requests to launch the ‘Gull effect’ in the South Island and so we are stoked to be bringing competitive prices to mainland motorists who have been paying far too much for their petrol for far too long.” It is predicted that the expansion of Gull into the South Island will decrease fuel prices by as much as 20 cents per litre. n
PAPATOETOE OPENS DOORS New World Papatoetoe has reopened after the store was completely rebuilt to offer customers a refreshed, more modern offering. “The locals were lining up outside the door for opening time. The community has been looking forward to the store being open again and following the rebuild
closely – with some even setting up deck chairs out front to watch the progress,” said Foodstuffs. The store is looking great and is the end result of a lot of hard work from Max McDermid and the Papatoetoe store team alongside the property team in the Support Centre. n
editorialcomment Caitlan Mitchell Editor
caitlan@reviewmags.com
T
he convenience industry isn’t exactly the most glamorous category, ‘influencers’ don’t tend to flock to convenience stores to take selfies or post pictures of their ‘meal in a minute’, however, it has become a booming category with more and more consumers wanting quick and easy meal solutions. Take a 7-Eleven, it exists solely to feed people cheaply, quickly, and usually, on-thego. It has plans to get rid of its junk food reputation in lieu of something more ‘clean’, changing the perception of convenience from one of deep-fried and sugar-laden to fresh and betterfor-you. Although the outer of the store has been largely unchanged, the new ‘lab store’ which was debuted in March is a high-end convenience store that resembles a modern fresh food grocery store with natural wood accents featuring cold-pressed organic juices, street tacos, handmade tortillas,
diarynotes
a patio and inside dining areas. The experiential testing ground is a place where customers can try and buy the retailer’s latest innovations in a revolutionary new store format. In today’s world, convenience retailing has come a long way from its days of bread and milk being sold from ice docks in 1927. Customers will also find on tap nitro cold brews, kombuchas and organic teas, cold treats bar with frozen yoghurt, ice cream and toppings, digital initiatives like scan and pay technology allowing a checkout free experience and innovation stations that showcase limited-time and seasonal offerings. The piece de resistance? An organic Slurpee machine with coconut, cucumber and blood orange options. The iconic beverage now opting for a more ‘farm to fountain’ approach moving away from a sugary treat to superfood staple. The baby food category has also seen transformations following a steep drop in baby food sales, which went from a $42 weekly household spend in 2009 to a $24 spend in 2017. Canned baby food is one that parents have associated with sacrificing on nutrition, quality and taste while gaining convenience. Baby food is now seen in both fresh
and frozen aisles allowing parents to still buy nutritional food but in convenient packaging. Convenience is also seen in technology and accessibility to food and shopping. SupermarketNews featured The Bondi Grocer late last year, the Sydney convenience store that has teamed up with Uber and other food delivery apps to allow customers to gain access to convenience foods delivered immediately. And finally, the meal kit. The pioneering product that grocery stores are finally addressing and there is no closer, more efficient last kilometre option than the grocery store down the road. Supermarkets could be the ideal provider of meal kits because of their versatility, as well as already having the shopper’s attention and the delivery option is much more reasonable than that of a meal kit company. Despite it not being something a retailer can jump into quickly, particularly if they try to do in-house production, there is room immediately to expand the deli counter and offering.
April 21 – 26: Malaysia International Food & Beverage Trade Fair 2019
May 28 – 30: Food & Grocery Australia Conference
May 7 – 10: Hoffex Hong Kong 2019
August 15 – 19: Hong Kong Food Expo
May 14 – 16: Sial China 2019
October 05 – 09: Anuga 2019
May 15: KAM Networking, ASB
October 29 – 31: Gulfood Manufacturing 2019
ATTENTION GROCERY SUPPLIERS The Food and Grocery Council is an industry association for grocery suppliers providing members networking, events, industry information and strong advocacy. Contact us for information on the benefits of membership: katherine.rich@fgc.org.nz • Networking • Industry Updates • Conference and Events • Education and Training • Advocacy and Law Reform
www.fgc.org.nz
departments
10 Behind The Business 14 Store of the Month 16 What's New 24 Convenience Meals 28 IRI Report
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SupermarketNews is published under license. Please direct all enquiries and correspondence to SupermarketNews. The opinions and material published in this edition of SupermarketNews are not necessarily those of the publishers unless specifically stated. All material in this publication is copyright and may only be reproduced with the consent of the publisher. Copyright 2019
CHAIRMAN Peter Mitchell, peter@reviewmags.com
EDITOR Caitlan Mitchell, caitlan@reviewmags.com
SENIOR DESIGNER Raymund Sarmiento, raymund@reviewmags.comå
PUBLISHER Tania Walters, tania@reviewmags.com
EDITORIAL STAFF Georgina McKimm, georgina@reviewmags.com Mark Fullerton, mark@reviewmags.com
GRAPHIC DESIGNER Ciaran Carroll, kez@reviewmags.com
GENERAL MANAGER Kieran Mitchell, kieran@reviewmags.com
ADVERTISING SALES Felicity-Anne Flack, felicity@reviewmags.com
EDITORIAL DIRECTOR Sarah Mitchell, sarah@reviewmags.com
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The NEW ZEALAND BEVERAGE COUNCIL is an industry association whose members cover all aspects of the non-alcoholic beverage market both in New Zealand and the export markets. The Council members are spread throughout New Zealand and come together annually for an industry conference that covers industry issues and is addressed by international speakers. The organisation monitors product quality and sets standards for the industry and runs national competitions and awards.
THE NEW ZEALAND BEVERAGE COUNCIL (NZBC) P.O. Box 47, AUCKLAND 1140, New Zealand. Email: info@nzbc.nz Phone: +64 9 309 6100 DDI: +64 9 302 9932
April 2019
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news CONTAINER KITCHEN DELIVERED and can act as a small, mobile café. Epiphany Café, a Hamilton-based company, best known for their doughnuts and coffees, won the Great Container Kitchen at the draw. Sammy Karlin, national design and project manager for Burns & Ferrall, was onsite to hand over the kitchen to Epiphany. The Great Container Kitchen was squeezed into Epiphany’s Hamilton warehouse while they figure out the best way deploy the container. Nothing is set in stone at the moment, but as Epiphany look to expand their operations throughout New Zealand as well as looking at overseas potential, the Container Kitchen will undoubtedly help wherever needed. n
The Burns & Ferrall Great Container Kitchen was delivered to the competition’s winners, Epiphany Café, in Hamilton. The Container Kitchen, a Burns & Ferrall 70th Anniversary giveaway, is fully kitted out with cooking and serving equipment
OI PICKED UP BY WALMART
New Zealand company Organic Initiative (Oi) has been picked up by Walmart. The company shared the news in a recent
Instagram post announcing that its full range of biodegradable organic products would now be available to women in the US. Oi has a range of certified organic pads, tampons and panty liners that are free from any plastic and chemicals. Oi CEO, Helen Robinson believes that “all women should have access to an affordable range of premium, organic tampons, pads and liners.” n
REDUCING SOFT PLASTICS Foodstuffs has announced that the co-op will not be part of the limited soft plastics recycling relaunch. Instead, they are focusing company efforts on the reduction of plastic packaging. “Foodstuffs were supportive of the previous scheme when there was a credible pathway to recycling large volumes through REPLAS in Australia. The Packaging Forum has proposed a vastly reduced scheme in a handful of locations which, while well intended, will do very little to address the core problem – the prevalence of problematic packaging materials in the first instance,” said Mike Sammons, sustainability manager. “As a major retailer we accept our responsibility
to drive the solutions going forward, and as such we are not sitting on our hands.” Foodstuffs will invest in a range of initiatives to drive wasteful packaging and single-use plastic products out of the store and out of customers’ rubbish bins. The co-operative has committed to the 2025 Plastic Packaging Declaration, which will see the business transitioning its in-store and private label packaging to being 100 percent reusable, compostable or recyclable. n
JAPAN’S TASTE FOR CHEESE Japan’s demand for Italian cheese is growing thanks to the free trade agreement between the EU and Japan. The blue cheese category in Japan has increased by 14.5 percent in recent years. According to importers the Italian style of cheese is proving popular in the country due to its dry style and the fact that it isn’t as rich as other European cheeses. Japanese consumers also consider blue cheese to be good for cooking and pairing with other foods. n
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GOAT BUTTER
A UK dairy company has launched its goat’s butter in the Australian market. Delamere Dairy is known for its production of sheep, goat and cow’s milk but has now developed a goat’s butter that has been picked up for Australian distribution in supermarket chain IGA and some independent retailers. “This new exporting opportunity has extended our international reach, and we’re expecting Australian sales to become a significant revenue stream for the business,” said Jonathan Cope, export director, Delamere Dairy. “Even though Australia has its own goat’s milk industry, we carried out
analysis of the product range in major retailers via shopping websites, and it became quickly apparent there was a gap in the market for us. Consumers are becoming increasingly aware of the health benefits associated with our products, demonstrated in the overseas demand we are seeing.” Delamere Dairy now predicts that its Australian sales will reach six figures by the end of the year. n
CRACKING TOP TEN
Wesfarmers and Woolworths have been named amongst the top five companies in IBISWorld’s 2018 list of Australia’s Top 1000 companies. “The firms on IBISWorld’s 2018 Top 1000 list account for $2.22
trillion in revenue. Over 75 percent of companies on the list reported higher revenue for the year,” explained James Thomson, IBISWorld Senior Industry Analyst. Amongst the biggest movers on the list were online shopping businesses with new entrants Kogan and software company Xero making the list. However, the two strongest performers were aged-care providers and food and beverage manufacturers, while some of the weakest performers on the list included wholesalers and agricultural producers. n
WOOLWORTHS LAUNCH CARTOLOGY
The Woolworths Group has launched a stand-alone media business. The new company named Cartology will ensure suppliers can better communicate with customers. Media industry veteran Mike Tyquin has been appointed as Cartology’s managing director and Rod Evendon has been given the role of general manager of operations. Woolworths Group CEO Brad Banducci believes that connecting with customers in an engaging way is critical for the company’s continued growth. “We’ve been watching closely how other large-scale retail businesses internationally are better engaging
customers along the path to purchase. Many are now leveraging new digital and data technologies to become major media businesses in their own right.” “Cartology has been established to provide a more streamlined approach for suppliers to better communicate to customers via our in-store, digital and other media assets. It’s an exciting time for our partnerships, and we look forward to working closely with suppliers and industry as we launch the business and further innovate the retail media landscape in Australia.” The new media platform will replace the existing media selling model used by the group. n
2019 CELEBRATING THE VERY BEST IN THE NEW ZEALAND F&B INDUSTRY
It’s that time of year again as we start the search for the best Artisanal producers in New Zealand. We believe that artisanal products are a methodology and not a size of business, so if you are a large or small manufacturer, produce your product in a small kitchen or a large industrial unit, its time to look at entering the Inspire+ New Zealand Artisan Awards
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In Stores Now FOR MORE INFORMATION CONTACT:
Alliance Representative or Chris Petersen on 06 370 0260
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beveragenews RED ENERGY
LION ACQUIRES TEZA
New Zealand iced tea brand Teza Iced Teas has been acquired by Lion New Zealand to extend the company’s non-alcoholic drinks portfolio. Teza will join Lion’s non-alcoholic division, Drinks Collective, which already owns brands Höpt soda and Mac’s soft drinks and has a partnership with Vista drinks. The partnership will see Lion take full control of Teza and its associated assets. Founders Joe Gehrke and Daphne Raj, who now live in Australia, will still be partly involved with the brand via an agreement that gives them rights to distribute Teza on behalf of Lion in Australia. “The iced tea market is in strong growth globally, so we’re incredibly excited to welcome Teza Iced Teas into the Drinks Collective. The brand’s premium offering complements our existing range nicely and will help us deliver greater choice and convenience for consumers across more social occasions. We’ll be leveraging our networks to make the brand more readily available nationwide,” said Stefan Gray, general manager Drinks Collective. n PWA19_Ad_210x150mmH_EN_HR.pdf
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Coca-Cola has entered the energy drink market with its first energy drink listed under the Coca-Cola brand. Taking on Red Bull and Monster, Coca-Cola Energy combines naturally derived caffeine, B vitamins and guarana extract to create a drink that has more than three times the caffeine of Coke. However, the decision has caused some controversy with Monster Energy in whichCoca Cola has a 16.7 percent stake. Monster and Coca Cola are in the middle of arbitration over the new release with Monster claiming that the new drink violates the agreement made between the two companies back in 2015. While Coca-Cola had previously developed energy drinks such as NOS and Relentless, they were transferred to Monster as part of the original agreement. Coca-Cola Energy will debut in Hungary and Spain in April. n
6:39 PM
RIBENA REDESIGN Lucozade Ribena Suntory has announced an ambitious project in order to achieve its 2025 goal of making its plastic packaging 100 percent reusable, recyclable and compostable. The company has announced that it will be redesigning its Ribena bottle to meet UK recycling standards. The redesign will include a reduction in the size of its label which will mean recycling machines can easily sort it. Michelle Norman, director, external affairs and sustainability at Lucozade Ribena Suntory, said that the company took its sustainability commitments seriously. “We are proud to be announcing this packaging redesign to ensure our brands continue to be as sustainable as possible.” The redesign will see the company partner with design firm, Seymourpowell. “We believe great design and innovation can change things for the better and play a key role in helping LRS meet sustainability goals,” added Adrian Caroen, executive creative director, Seymourpowell. As part of its commitment, the business has already trialled biodegradable packaging for its Lucozade Sport drinks, partnered with anti-littering charity Hubbub, and has invested in numerous factories. n
techbytes
CONSUMER EXPECTATIONS
ROBOTIC HARVESTER
The annual “Store of the Future Report,” has revealed that 56 percent of shoppers expect that supermarkets will be primarily self-checkouts and use driverless delivery within the next five years. The study also found that 89 percent of participants felt that it was important for supermarkets to use technology to make the checkout process faster. “Consumers’ feedback demonstrates the need for grocers to embrace technology options that make the shopping experience easier and more enjoyable. And as we look towards the future, it’s clear that consumers have some high expectations for the technology applications they expect grocers to invest in – from cashier-less checkout to self-driving car delivery,” said Dana Krug of Phononic. Kroger in the US is one of a number of stores currently testing driverless cars and retailers are already upping the number of self-checkouts available to customers. n
INTEGRATION
In a world-first, T&G Global is using a robotic harvester for a commercial apple harvest. It is the culmination of four years of working with US-based technology partner Abundant Robotics, which T&G’s parent company BayWa AG invested in two years ago as part of its strategy to expand digitisation across its agribusiness. T&G global chief operating officer Peter Landon-Lane said the company is delighted to have reached this significant milestone in the evolution of the global apple industry and for T&G’s home operations in New Zealand to be at the forefront. “Automation enables us to continue to scale to meet increasing global demand for food, in the face of current and future labour market challenges. We’ve been actively driving towards this for the past few years, including preparing our orchards to be robot-ready.” To prepare for the launch of the robotic harvester high-density planting and specific pruning methods have been implemented at T&G’s Hawkes Bay orchards.
Abundant Robotics CEO Dan Steere said that the company evolved from its research-based origins after delivering a proof of concept prototype in 2015 and approached the commercialisation of the technology as a global opportunity from the start. “Developing an automated apple harvester requires solving a number of complex technical problems in parallel, from visually identifying harvestable fruit and physically manipulating it to pick without bruising, to safely navigating the orchard itself.” Mr Landon-Lane added that it would be some years before all of the company’s orchards are harvested in this way, but this first harvest is an exciting step forward for the industry. n
CLIMATE SMART
The World Business Council for Sustainable Development (WBCSD) and Opus Insights B.V. has announced plans to implement ‘CocoaCloud’ in West Africa. CocoaCloud is an initiative aimed at enhancing agricultural efficiency and climate resilience in West Africa. The technology can generate and translate critical information such as weather patterns and locationspecific agricultural advice so that local farmers can make better decisions. WBCSD and Opus hope to reach one million farmers in Ghana and Côte d’Ivoire by 2024. n
HQ MANAGEMENT
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behindthebusiness
PURE BOTTLING SECURES BRC CERTIFICATION
Pure Bottling is passionate about working together with brands that stand for something. They want to work to take quality products throughout New Zealand and internationally.
SUNSMART SISTERS
“People often ask us why sustainability is important to our brand, it started with what is important to us,” explained Chloe and Florence Van Dyke, founders of Chia Sisters. The Chia Sisters and their team have spent years crafting health beverages to fuel and nourish New Zealanders. of our power-use and put systems in place to reduce it. This ranges from the very basic, good insulation; to more complex and intelligent systems that manage energy use.” Recently, the Chia Sisters partnered with Callaghan Innovation, a company that assists and offers support for business growth. “Callaghan Innovation has been instrumental to our ability to innovate and grow. Chia is a unique beverage that requires its own processes—there is a cost to trial and error—but once you have that knowledge, it allows you to be a world leader. Callaghan Innovation understands that value,” explained the pair. Outside of maximising energy efficiency for their business operations, the Chia Sisters operate an EV business car which can, of course, be charged with solar. They also ensure that their packaging is made of recyclable material and prioritise sourcing their ingredients ethically. Their recent range of drinks, ‘Bottled by the Sun’, shares the Chia Sister’s story and encourages consumers to take an active role in doing their bit for the environment. n
“Growing up understanding solar power meant we had a real understanding of power use. If you forget to turn off the lights at night, it might mean a cold shower in the morning.” Manufacturers that are looking into ways in which energy efficiency and sustainability can be maximised need to look no further. The Chia Sisters strive to produce more power than they use, thereby boosting the network simultaneously. “When the sun is shining, we are generating twice as much power as we are using—the extra can be put back into the grid, or we can harness it in other ways such as heating water during the day rather than at night.” Based in Nelson, the Chia Sisters are perfectly set up to harness the energy of the sun. The extra power generated and saved means that despite adverse weather conditions, the juicery can stay up and running. New Zealand is generally regarded as a green nation. However, the sisters believe that there are ways in which it can become even more environmentally conscious. “I think we can improve our understanding
SUSTAINABLE PACKAGING
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As part of its aim to help distribute quality New Zealand products, Pure Bottling has added another certification to its list. The company recently received certification from the Global Quality Standard of BRC (British Retail Consortium) which means that Pure Bottling is now the only BRC certified contract beverage packer in New Zealand (outside of wineries). “Gaining a globally recognised food safety benchmark like BRC is an important part of us becoming a world-class operation, and also allows our customers to gain access to many export markets. It was a big effort by all of the team to achieve the double AA Audit result, and the benefits can now flow through to our customers,” explained Craig Ayres, general manager, Pure Bottling. BRC provides a framework
to manage product safety, integrity, legality and quality, and the operational controls for these criteria in the food and food ingredient manufacturing, processing and packing industry. Pure Bottling was started in 2015 by group CEO Hamish Gordon and has seen rapid growth since its launch, becoming the production partner of choice for many of New Zealand’s leading brands such as East Imperial, Karma Cola and several private label brands. The company now has three production lines in operation across glass and PET, allowing its capabilities to stretch across soft drinks, juice, kombucha, alcohol, liqueur and more. These capabilities ensure that Pure Bottling is a flexible and efficient co-packaging partner. n
Started just last year, New Zealand packaging company Grounded Packaging is predicting growth due to a shift towards sustainable packaging demands. The business aims to develop quality compostable packaging solutions derived from bio-based materials. “All of our packaging is bio-based and certified to European or OK Compost composability standards for both home and industrial composting,” explained co-founder Josh Kempton. With a number of packaging applications such as pouches, bags and wrappers, Grounded Packaging can offer food manufactures compostable formats for bread, cereal, fresh produce, pasta, meat, frozen foods, confectionery and food supplements. The company sources its laminate films from Europe while the printing process takes place in Germany and Italy. This allows Grounded packaging to price its products at competitive rates. “Soft plastics with compostable flexible packaging is the future. Grounded’s Vision is to gradually replace single-use plastics throughout the supply chain of commercial production and retail environments for good.” n
BECOMING SHOPPER-CENTRIC: Price, Promotion and the Overall Value Equation By Brett Miller, Sales & Marketing Effectiveness Lead, Nielsen Pacific
New Zealand’s fast-moving consumer goods (FMCG) sector continues to face disruption. Manufacturers are under pressure to manage this complex environment and address challenges such as bringing growth to categories, managing the in-store experience, and understanding what to do with e-commerce—all the while managing financials (doing more with less). Questions around assortment, price, and promotion are at the centre of many of these challenges. With shoppers becoming more discerning, promotional strategies need to be shopper-led where price and promotions are expressed as a value equation that shoppers can connect with. By placing the shopper at the centre of decision making, manufacturers can better collaborate with their retailer partners to address the inefficiencies of trade spend—one of the largest costs of doing business. In New Zealand, for every dollar sold on promotion, approximately $0.50 is truly incremental. This varies across categories depending on the existing promotional dynamic and shopper responsiveness to promotions. The remaining 50 cents would have occurred anyway, and at a higher nonpromoted price point. There’s no doubt that promotional planning can be run in a more efficient and shopper-centric way, but many find it challenging to know where to start when making improvements. In the last six months, I’ve met with 30 FMCG companies to discuss ways they can boost their portfolio efficiency. These conversations
included building on their shopper understanding, ensuring the right products are on-shelf for that shopper, optimising the use of the shelf space, and managing price and promotional tactics to increase their ROI (return on investment) specific to trade spend.
Status Quo: Sticking With ‘Saly’ When we look specifically at why existing promotional plans can have a low return on investment for both retailers and manufacturers, ‘saly’ (same as last year) budgeting is a prime culprit. Promotion plans are frequently built on a previous year’s plan with minimal change. In addition, manufacturers are often under pressure to invest at least the same amount of trade spend as they did the year before, if not more. The core challenge is that if you price or promote your products too expensive you could take a hit on share and impact velocity on shelf, risking being delisted. However, too cheap and you could miss out on profit and communicate a lower quality for your brand. Additional challenges in the promotional planning process below can lead to the development of strategies that aren’t shopper-centric, which run the risk of having a low return on investment. • IT’S A DISCONNECTED PROCESS: Often, businesses make price and promotional decisions, as well as designing assortment and space strategies, in isolation. This leads to inefficiency when these strategies are not aligned or planned
together, despite being inextricably connected. The only way to truly deliver on revenue management and trade promotion optimisation objectives is to first get the right items and facings on shelf, which you then optimise. • DOESN’T FULLY FACTOR IN CATEGORY IMPACTS: Businesses often don’t fully understand how individual promotions impact the whole category. As a result, they may develop strategies that steal share from other brands as opposed to driving category impact, which runs the risk of devaluing categories in the long term. Other times, promotions can encourage shoppers to switch to competing stores, which is great for the retailer but not necessarily good for the manufacturer. Understanding promotional strategies that drive shopper behaviour benefiting both manufacturers and retailers allows for the creation of win/win strategies in the planning process • LACK OF ALIGNMENT BETWEEN PROMOTIONS AND SHOPPER RESPONSE: If shoppers respond more to promotional price changes in the market than shelf price changes for certain items, you could argue that those items are better suited to a ‘hi-lo’ strategy than an ‘everyday low price’ strategy. However, a large proportion of items in the market are inelastic where shoppers don’t respond significantly to either shelf or promo price, and yet they are still regularly placed on price promotion. In addition, there is a lack of science being applied to understanding promotional mechanics like being in a mailer or on display and how these activities impact shopper behaviour beyond the effect of a price change. A comprehensive understanding of all of this is critical to executing best-in-class price and promotional strategies. New Zealand shoppers are some of the most sensitive to price and promo changes in the world. If shoppers are trained to be increasingly sensitive to shelf and promo price changes, categories will be devalued - Nielsen estimates that almost a half a billion dollars annually is eroded in lost value due to promotional activity today. The industry needs to take a shopper-centric view, where strategies are tailored to match how shoppers are behaving and responding to price in the market today. n
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JASON NATHAN DUNNHUMBY
Jason Nathan grew up in Inner North London, very much attached to his computer. From a young age, he wanted to develop computer games, which is where his interest in computer science and technology started. At university, Nathan studied philosophy. “While we often recruit CompSci or Maths undergrads or postgrads, we sometimes select individuals who may have studied something different and built their knowledge in computer science or data in their spare time—I am definitely one of the latter.” Nathan has worked for dunnhumby for close to 13 and a half years, in various roles and across different areas of the global business. Currently, Nathan’s position as global capability managing director of data puts him in charge of driving innovation, deployment, and value creation across all 30 plus markets that the company
currently operate in.” dunnhumby can develop and personalise shopping experiences in ways that benefit shoppers and retailers alike. As technology continues to evolve, shopping experiences are expected to continually develop as well. “With the shopping experience becoming increasingly integrated across the physical and digital worlds, the amount of data generated is being amplified,” explained Nathan. The company has now expanded into New Zealand. “New Zealand is known for being an innovative, early adopter market, with advanced thinking in the arena of customer data science. “We decided to create an Australia and New Zealand-focussed team in response to global demand for presence in the local market. We want to partner with local retailers, equipping them with the advanced tools and expertise that allows them to offer personalised grocery experiences to New Zealand consumers.” Having a rounded understanding of one’s customers allows retailers to cater to specific needs. “Transactional anonymised data about what people buy is valuable for a lot of other businesses. There are many opportunities to on-sell this data to create new revenue streams via advertising, market research, and business intelligence.
“In 2019, we’ll likely see a lot more of this from not just retailers, but other industries as well.” The business places emphasis on ensuring that the data it collects is used ethically. Nathan hopes to help inform and drive decisions as technology, and digital lifestyles continue to evolve. Nathan encourages retailers to look at loyalty. The three ways in which he believes loyalty can be encouraged are offering points, currency and cost savings; rewards that save customers time, and rewards that bring joy to a customer. For instance, rewarding a consumer with an offer on a product that they were already planning on purchasing can be a great way to both encourage loyalty, and bring about a personal sense of joy to a customer. The amount of data being generated by an increasingly digital society means that analysing and processing data is becoming harder and harder for retailers to handle. “Machine learning and organising different data sources and building predictive models is now achievable and something that only a few years ago would have taken teams of analysts months to do.” It is clear that as customer trends, technological trends, and industry trends develop, so too must the ability to be able to analyse and incorporate data into consumer shopping experiences. n
TOP TIPS FOR ANUGA Business going well? Want to increase your sales? • For the first time in around 10 years we are seeking expressions of interest from suppliers to New Zealand’s competitive grocery sector to partner with. • By partnering with us we will provide you with full sales representation with Territory Managers reporting in real time and supported by a committed merchandising team • Photographic reporting showing where and how your products look on the shelf • Product and price analysis reporting in real time • With 40 years of experience and an envious skite sheet to point to we are sure that we can offer any supplier a pathway to growth • All of the necessary H.O. support • 3PL distribution and warehousing For more information contact PHILLIP COATES
Paragon MultiPlex Ltd Tel: +3 354-4065 Mob: + 27 432-0349 www.paragon-multiplex.co.nz
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With 7,405 exhibitors and 165,000 visitors expected to attend this year’s expo, Anuga 2019 is the world’s largest trade fair and an event not to be missed. From the 5th to the 9th of October, Cologne, Germany, will once again play host to the world’s industry leaders in food and beverage. The event will house ten mini trade shows, eleven trend themes and a congress programme, confirming Anuga’s place as the number one trade show in the world. Due to its popularity, it is essential that attendees planning on visiting the expo are ready. Here are some ways in which you can prepare for Anuga in advance:
Get Your Tickets You can secure your ticket early using Anuga’s online ticket shop. Once you have your ticket, you can skip
the queue and head straight to your appointments. Not only does securing your ticket early save you time but it can also save you money. With savings of up to 44 percent compared to box office pricing.
Connect With Others Anuga’s service tool – Matchmaking365 – allows you to connect with fellow attendees and exhibitors in advance. Prepare yourself for the trade show by organising appointments in a targeted manner before you arrive.
Accommodation Don’t forget to book accommodation in advance. With many exhibitors securing a quota of hotel rooms in advance, accommodation is snapped up quick. Anuga’s staff are happy to assist you in booking your accommodation. Contact the Anuga service phone on +49 221 821-3072, email hotel-services@koelnmesse.de, or simply use their hotel booking portal. n
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storeofthemonth FOUR SQUARE LAKE TEKAPO
Russell and Lesley Jeffries came to Tekapo in 1985 for an exciting opportunity to part own a small service station and store in Lake Tekapo. This store grew to become a Four Square which included fuel and a standalone premises.
T
heir son Jason spent his childhood working in and around the store growing a passion for the industry. It was when he came back from his OE that he met his future wife Casey who happened to be working at Tekapo Four Square. “As a family, we love the fast-paced ever-changing world of the FMCG and have an absolute passion for customer service. Lake Tekapo was the drawcard for all of us, it is an amazing spot and to have the opportunity to do something we love in such a beautiful place is amazing,” said Jason. Being situated in such a unique location means that the Jeffries’ must cater to a large number of tourists. This means the team at Tekapo Four Square need to have a good selection of on-the-go options available. “We have a purpose-built food-to-go kitchen and displays as well as a full-time team of two producing and developing food-to-go options and three part-time staff. “As needed, we will increase staff to this area and increase the time spent in the department.” Jeffries sees food-to-go as one of the biggest growth opportunities in the industry. “Food-to-go is our biggest push for growth at the moment, and we continue to see people with less time who need good quality, healthy convenient options. Food-to-go has endless opportunities and our department is set up to grow at a great rate.” In addition to food-to-go, Jeffries has also seen rapid growth in the health food aisle. “We are continuing to grow our offering of health foods and are bringing in new lines of these great products weekly.” As part of the store’s focus on healthy options, Tekapo Four Square has been growing all of its fresh departments. “Customer focus is pushing further and further towards fresh products and this is where our in-store butchery and produce departments really excel.” The town of Tekapo is growing at a fast rate which means that the team has had to adapt and work hard to keep up with both local customer and tourist demand. “As Tekapo is growing at a breakneck pace we are looking to keep up with demand and the ever-changing customer focus. We want to be the supermarket locals and tourists come together to
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shop at. We aim to cater to their every need and hope to continue to exceed their expectations.” 2017 saw the opening of a new store, which Jeffries credits as being one of the family’s greatest achievement to date. “As a family, the greatest achievement would have to be opening the new premises. Our store grew from 250m2 container storage and 20 staff to an over 900m2 purpose-built supermarket with 40 staff.” This new store footprint has given the team at Tekapo Four Square more space to work with. “The open, uncluttered feel of the aisles is something that we think is a highlight of the store. When you walk in you are surrounded by fresh food. The first thing you see is the food-to-go island with an abundance of fresh produce behind it; the store then flows into our bakery and butchery departments.” The flow of the store isn’t the only thing that the Jeffries credit as being a unique aspect of the store. “We can’t forget the view from the store windows in our frozen food department.” The layout of the store makes for not only an enjoyable place for customers
to shop but also an enjoyable place for the staff to work. “We are lucky to have very helpful, friendly staff who want to be working within this space.” In addition to being located in such a beautiful New Zealand location, being part of a great community is also a highlight for the Jeffries. “We are the local hub where people come together in the community. In most conversations you will hear something about the Four Square”. The team at Tekapo Four Square are a big part of the community, attending as many community events as they can and offering support when needed. They are also supporters of Tekapo Ice Hockey and The Bright Stars Trust which act on behalf of the Lake Tekapo School and Kindergarten. “We are a true believer in always looking after the locals, and this also applies to our many overseas and out of town customers. If it weren’t for the staff and the customers, we wouldn’t be here.” The store has a great number of different cultures and people that the Jeffries’ employ who are passionate
Footprint 967 m2
9,000 SKUs
Selling Area 521 m
Opening Date: June 2017
Checkouts: 7 regular
OWNER/OPERATOR:
2
0 self-checkouts
35 staff
about their job. “Our staff treat the customers as the reason for their job and give them top priority. At Tekapo Four Square we feel as though one of the biggest opportunities in the grocery industry is to stay in tune with what our customers want, offer the best service, talk to the customer and make the supermarket a place where people want to be and also work.” Recently the team has noticed the impact that social media can have on a business. The Jeffries’ have seen massive growth in customer reviews online including on social media and Google. “We are stoked to see a number of great reviews coming through from our customers without being prompted. It really shows we have developed a team who really want to be here and take exceptional pride in their work.” Sustainability is still top of mind for consumers, retailers and producers. “Where possible, we are removing plastic packaging from fresh departments, our cardboard is bailed and recycled, and we also
RUSSELL and LESLEY JEFFRIES CASEY and JASON JEFFRIES
have a strict recycling programme in the departments that ensures any items able to be recycled are.” The team sees the shift towards sustainability as one of the biggest challenges the grocery industry is currently facing. “It is challenging to do our bit to protect the planet but ultimately rewarding.” As part of being sustainable and supporting the community, the Jeffries’ are introducing more and more local produce into the store. “We have amazing local suppliers like Jo O’Neill’s Eggs and Mount Cook Salmon, and the list is growing.” Regarding future developments in the store, the Jeffries’ are turning their attention towards category development, ranging changes and NPD. “We will also continue to develop food-to-go with new, exciting choices. As we are a relatively new store our wish list for store development has been pretty well ticked off. Looking forward we will be setting ourselves goals to continue growing by implementing new things for our customers.” n
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The Bee’s Knees Straight out of Taranaki, Egmont Honey is a family business that’s appropriately named after the towering mountain that overlooks the entire region. After years of successfully exporting its Manuka to the world, they decided to share the honey love with fellow Kiwis. The range features two popular varieties – Raw Honey and Lemon ‘n Honey. Egmont Honey are proud supporters of the reinvigoration of the bee population with 5 percent of profits donated to save the bees. The hives are also kept free from pesticides and other chemicals known to contribute to the world’s decline in bee numbers.
Sleep Time Gummies Nature’s Way has added to its popular range of Kids Smart Vita Gummies. The new Nature’s Way Kids Calm Vita Gummies have the dual benefits of magnesium and theanine, which provides natural and gentle support to calm and settle children when they struggle to relax and focus. The 99 percent sugar free, dairy-free, vegan gummies are ideal for restoring daytime balance and supporting restful sleep in growing kids. Nature’s Way Kids Smart is New Zealand’s leading brand of kids supplements available in supermarkets. For more information visit www.pharmacarenz.co.nz or email Tina at tadam@pharmacarenz.co.nz.
So Good Switchel
From bananas to Switchels. All Good Organics, the team behind New Zealand’s loved Fairtrade banana brand, All Good Bananas has entered the functional beverage market with the introduction of its new All Good Switchel; a refreshing mix of sparkling water, apple cider vinegar and natural flavours. The Switchels have 500,000,000 probiotic CFUs (colony forming units), are organic, sugar-free and made from raw apple cider vinegar made using apples grown in New Zealand. Available in three delicious flavours—Lemon and Ginger, Apple and Blackcurrant and Peach and Passionfruit. “We’re excited for Kiwis to taste our new All Good Switchel. We understand the importance consumers are putting on gut health and overall wellness. We believe you can have a really delicious drink that’s also good for you” said Faye MacGregor, GM Marketing All Good Organics.
Fancy Fruit
Introducing the first healthy frozen convenient snack for adults and kids. Sujon Fruit cups contain 100 percent frozen fruit and are available in three delicious flavours; Mixed Berries, Mango and Blueberries. Keep in a lunchbox while the fruit thaws or eat the fruit frozen straight from the cup. The cups and lids are reusable and a perfect size for refilling with yoghurt, fruit or nuts.
On The Go NZ’s Largest Range Isola Bio offers a simple list of ingredients, no added sugar and a high percentage of raw ingredients. This range is a great organic alternative for the growing number of customers looking to cut down on dairy intake. Isola Bio plant-based milks are made with certified organic ingredients and carefully crafted recipes. They grow, harvest and produce their plant-based milks using renewable energy. Isola Bio continually strives to be waste-free and are a certified B Corporation, meaning they meet the highest standard of verified social environmental performance, transparency and accountability. The Isola Bio dairy-free and no-added sugar 1 litre range includes Almond Milk, Just Almond, Oat Milk, Brown Rice Milk, Soy Milk and Rice Coconut Milk. The handy 250ml flavoured range is dairy and gluten free includes Almond Rice, Cocoa Rice and Coconut Rice. For more information about this new range contact sales@chantal.co.nz or (06) 842 0763 ext 811
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Sistema Plastic has a variety of new products. Reduce waste with Sistema’s new Reusable Drinking Straws. Available in a convenient pack of six, they are perfect for picnics, school lunches and on the go. Straws are split into two pieces for convenient storage and ease of cleaning and are dishwasher safe. Sistema’s new Tritan Adventum Bottle is great for outdoor adventures. The bottle features leak-proof spill-lock technology and an easy push button which flips open the lid to reveal the wide mouth sipper. Sistema’s new durable Lunch Bags keep food warm or cool with a fully insulated wipe clean, food safe lining. Lastly, Sistema’s new all in one Lunch Stack makes it easier to take food on the go. It contains a larger base compartment for salads, sandwiches and stir fries and a smaller compartment separated by a convenient tray for fruit and snacks. The unique design nests when empty to save space. For more information contact Jake Lewer at jakel@sistemaplastics.com.
Whipping Up Packaging
Rebel Wraps
Introducing Waikato-made speciality creams in new-look, recyclable pouches. The new Tatua pouches are self-standing, resealable and create less waste – and now come in a 500g size, so there’s enough Tatua deliciousness to last the week. Tatua Dairy Whip and Tatua Chocolate Mousse are having a makeover too, with the same great-tasting product inside.
Rebel Bakehouse is the latest innovation from Breadcraft, a company based in the Wairarapa with 75 years of history producing some of New Zealand’s finest baked goods. In March, Rebel Bakehouse are launching four new products, cricket flour, hemp, purple corn and spinach wraps to Kiwi consumers, the first products of their kind to hit supermarket shelves. There is significant demand from Kiwis for healthy, sustainable food options. We believe sustainably sourced, environmentally friendly proteins are the future of food. Already 2 billion people eat crickets every day, and hemp is one of the few sources of complete protein for plant-based eaters. Good for you, and good for the environment. Rebel Bakehouse’s wraps all have a minimum 4-star health rating, and we are working towards achieving 5-stars. We aren’t stopping there, we also have plans to expand our range and offer Kiwis more healthy, sustainable, good-for-you food options. For more information visit www.rebelbakehouse.co.nz.
Golden Easter
Light By Nature
Ferrero Rocher has released a new Easter companion for this year’s long weekend. The Gold Squirrel combines Ferrero Rocher’s signature hazelnut pieces and luxurious smooth chocolate to create a delicious treat everyone will savour.
A new, full-flavoured light beer option has landed on New Zealand shelves. Steinlager Pure Light is a full-bodied lager that is lower in alcohol, calories, and carbs, but with no compromise on flavour. With 2.5 percent ABV, 72 calories per 330ml bottle and just 1.5 percent carbs, this is the perfect brew for people seeking a lighter option to fit their balanced lifestyle. “People are increasingly focused on their wellbeing, and we’ve seen that having an impact on how people are drinking. Steinlager Pure Light means they can do that, without sacrificing the full flavour of the beer they love,” said Rory Glass, Lion NZ managing director. Independent research, commissioned by Lion New Zealand has revealed that half of adult Kiwis have now tried low or no alcohol products, with almost half drinking them monthly or more frequently. Steinlager Pure Light is available in a six and a 12 pack.
Everything Butter Fix and Fog Everything Butter is a nut and seed spread packed full of nourishing hemp, chia, sesame, sunflower, flaxseeds and pumpkin seeds with peanuts and almonds. It’s crunchy, wholesome and 100 percent delicious. There’s nothing else quite like it in New Zealand. “We’re especially excited to be showcasing hemp seeds, which are super tasty and incredibly nutritious,” said Thom Brooks, chief operations officer. Hemp seeds are the only complete source of plant protein with a full spectrum of amino acids, and the perfect ratio of omega 3 and 6. This versatile spread works so well in either sweet or savoury snacks and dishes.
Golden Desert Halo Top has released its new dairy-free, vegan-friendly range of ice creams onto New Zealand shelves. The new range will include Sea Salt Caramel, Toasted Coconut, Chocolate Chip Cookie and Caramel Macchiato. The brand’s vegan flavours range from only 280-360 calories and only 16-24 grams of sugar per tub. Made with coconut milk, these dairy-free and vegan-friendly flavours still deliver on the exceptional taste for which Halo Top is known. While two of the flavours are vegan versions of Halo Top’s current dairy selections, two of the tubs will be entirely new flavours for Kiwi fans.
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Top Of The Blocks Whittaker’s and Tip Top have joined forces to bring New Zealanders a recreation of the indulgent ice creams released last year. The two powerhouses have launched limited edition 100g chocolate blocks. “To celebrate that and give Whittaker’s Chocolate Lovers another way to treat themselves, especially as summer comes to an end, we’ve created these two new flavours that replicate the ice creams, as limited edition premium 100g blocks,” said Holly Whittaker, Whittaker’s marketing manager. The limited-edition range includes a Salted Maple Cashew in 33 percent Cocoa Creamy Milk Chocolate and a Salted Caramel and Pretzel in 62 percent Cocoa Dark Chocolate.
Crispy And Crackling Lowrey’s 2 Minute Microwave Pork Rinds have hit New Zealand shelves. Just shake and microwave for two minutes to enjoy hot tasty microwave pork crackle. The pork rinds are perfect for consumers on a keto diet with just one carb per serving. Talk to your Alliance Marketing Territory manager for details or contact Alliance marketing on 09 263 9466.
Mystery Flavour Pringles has launched a Mystery Flavour as part of a new campaign. Pringles is urging customers to get involved and guess what the flavour could be, and with a $10,000 prize up for grabs its worth having a go. Each can of the Mystery Flavour has a clue with a total of six different clues being released over the next 12 weeks.
Goobye Irritation When essano’s co-creator Shane Young was suffering from irritated skin, he tried every ‘sensitive’ offering on the market, only to find that they were loaded with harmful chemicals that further inflamed his skin, which is why essano has decided to launch a men’s range – essano MAN. The new line is made using natural ingredients such as skin conditioning aloe vera, green tea, Tasmanian pepperberry and calming ginger extract. The full range includes a Sensitive Face Wash, Anti-Irritation Face Scrub, Sensitive Shave Gel, No-Irritation Shave Cream, SPF15 Moisturiser, an Everyday Moisturiser and Smoothing Bread Oil.
Swimming Into Stores After the successful launch of the premium, New Zealand made Queen Anne Chocolate Fish range, an opportunity was identified for a milk chocolate coated pineapple marshmallow as a favourite Kiwi flavour. This single-serve impulse item features an eye-catching ‘fishtail’ sleeve design for maximum visual impact. The Queen Anne Milk Chocolate Pineapple Fish is gluten-free and made using natural flavours and colours. This range extension will increase the profile of these popular consumer products and add great margin to the retailer’s impulse confectionery range at checkouts. For more information visit www.queenanne.co.nz or contact Sarah at sarah@queenanne.co.nz.
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Punchy Plum
Monteith’s has expanded its range of ciders with a new Dark Fruit Cider. The unique flavour contains blackcurrant, blackberry and plum atop a crushed apple base. “We added blackcurrant, blackberry and plum to our delicious 100 percent crushed apple cider to create a product that achieves new heights in easy-drinking refreshments,” said Sean O’Donnell, marketing director at Monteith’s. Dark fruit cider is a style that is growing in popularity globally, and within the domestic cider category, berry is the second most popular flavour behind apple. “The whole cidermaking team are excited with how this blend has turned out. It should appeal to the discerning Monteith’s cider drinker who is looking for a vibrant fruit cider that isn’t too sweet,” added David Sax, the chief cidermaker behind the Dark Fruits Cider.
Pineapple Paradise Good George brewing has taken the ‘pineapple on pizza’ debate one step further with the release of its new pineapple cider. The 4.5 percent ABV cider is a cloudy, pale sunshine colour with a tropical smell. With its fresh, sweet, pineapple taste, this cider is perfect for summer entertaining, Hawaiian parties or just as an after-work beverage
Polish Cider
Cider Lubelski is produced using 100 percent freshly squeezed juice from ripe Polish apples, which gives the cider an intense and refreshing taste with light bubbles. The freshly pressed apple juice and aromatic pulp are made using natural fermentation at a low temperature. Cider Lubelski is not filtered, giving the cider a natural look and light sparkling taste. The cider is available in two varieties; Cider Apple Classic Lubelski 4.5 percent and Cider Apple Unfiltered Lubelski 4.5 percent. For wholesale information visit www.qll.co.nz, phone 0800 111 828 or email ask@qll.co.nz.
Very Vegan Soup
Pitango, famous for their fresh real homestyle soups and risottos, has been hard at work in the kitchen creating new dishes for this winter. Their new Indian-Lentil and Turmeric soup is a lightly spiced soup that encapsulates traditional Indian style flavour. The soup is made using a blend of simmered lentils, cauliflower, coconut cream, a dash of warming spice and a healthy dose of turmeric for gorgeous colour. Pitango’s Indian Lentil and Turmeric soup is also vegan-friendly, gluten-free, has no added preservatives and has three serves of veggies per pack. For more information phone 09 261 2712 or visit www.pitango.co.nz.
Turn Back Time
Nivea has developed its most powerful Q10 formula yet with the new Nivea Q10 Power range. The range is an effective health care range which works to replenish the skin from fine lines and wrinkles by using the skin’s own active ingredients – coenzyme Q10 and Creatine. The new range consists of five products: the Anti-Wrinkle + Firming Day Cream, Anti-Wrinkle + Firming Night Cream, Anti-Wrinkle + Pore Refining Day Cream, Replenishing Pearls and Eye Cream.
Scorching Hot Forty Thieves have captured the essence of a favourite Kiwi confectionery and created a healthy and versatile nut butter. Combining simple and natural ingredients, the Stanmore Bay-based family business has launched another promising combination to join their existing line of natural nut butters. Scorched Almond with Organic Cocoa is 100 percent vegan and contains no refined sugar, palm oil, emulsifiers, preservatives or any other nasties. They’ve selected Ecuadorian organic chocolate made by a New Zealand bean-to-bar chocolate maker which is blended with premium Australian and Californian almonds.
A True Match Taste the American South Beak & Sons have introduced a new product to their popular slow cooked meat range: Bourbon Beef Brisket. Proudly made with New Zealand beef and slow cooked for tenderness and convenience, it’s easy to prepare, taking just 20 minutes to heat and slice. The brand has recently signed on former rugby player, Israel Dagg as its ambassador, to help promote the delicious slow-cooked meat range. For more information contact info@beakandsons.co.nz or visit www.facebook.com/Beak-Sons-NZ.
L’Oréal Paris’ new True Match foundation is now available in an impressive 36 shades. L’Oréal Paris’ True Match Foundation combines skin perfecting pigments and an ultra-gliding creamy texture to give flawless coverage with shade matching precision. The foundation blends seamlessly into the skin’s unique shade to create an even and natural coverage. “Now more than ever, we must meet the demands of our consumers across the globe, and this means catering to even more skin tones,” said head of cosmetics L’Oréal New Zealand, Carolyn Stewart. “New Zealand represents a myriad of ethnicities, and it’s important to us that we’re able to extend our shade range even further. We’re so proud to have Kiwi women representing the shade extension locally.” April 2019
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guestcontributor INNOVATION AT COUNTDOWN
and breakfast cereals. Just over a year ago, Deb Sue, a registered dietitian, joined the team whose role has included managing Countdown’s health and nutrition targets, assisting the reformulation process for our brands with the Health Star Rating system, and reviewing our dedicated health and wellness sections. As of the end of 2018, 91 percent of our eligible own brand products now display the Health Star Rating on the pack, and nearly half of these had a rating of 3.5 or above due to the intense reformulation work we have undertaken. A major role for our brands at
Countdown is to ensure we’re helping make food trends more mainstream and affordable, not just for the privileged. We are constantly looking globally to ensure we’re incorporating these trends and customers will have seen this recently with products such as Macro tofu, Macro organic pasta sauces, Macro Quinoa, and Quinoa Pasta. We’re also innovating more. Recently we launched Macro hemp powder, Macro veggie patties, Hot Cross Bun ice cream and our new brioche hot cross buns are flying off the shelves. We’ve got a range of developments underway through our partnerships with New Zealand producers, which will help to meet our customers’ demand for more convenience, new product ranges and great value. Reducing plastic packaging and improving recyclability continues to be a focus for our customers too. In June last year, Countdown committed to using 100 percent reusable, recyclable or compostable packaging in our own brands by 2025 or earlier, which includes produce packaging. When packaging is needed, we’re working to find alternative solutions that are right for both the New Zealand environment and our current domestic waste infrastructure. We’re always looking to establish more collaborative and unique product development, so if you have a new product or are interested in being one of our many Countdown range suppliers, please reach out.” n
to children as set out in the Advertising Standards Advisory Code? NZ Food & Grocery Council members have policies in place where they either don’t advertise to children at all, or they adhere to the ASA Code. You may be surprised to read that this research also repeated the exaggerated and misleading ‘factoid’ that children see 27 unhealthy food advertisements a day. The academics counted seeing food wrappers and packaging in school lunchboxes, biscuit tins, and in their cupboards at home. They even counted seeing packs on supermarket shelves when shopping with their parents, which by any stretch of the imagination would have greatly inflated the numbers. Most reasonable people would
see that in counting New World and Countdown grocery price advertising as ‘unhealthy’ can hardly be claimed to be targeting children. But this important point seems to have been missed by the researchers, and conveniently left out of media interviews. While not dismissing hearing children’s views, using the equivalent of one classroom of kids as a basis of policy change sounds more like a PR campaign tactic than actually addressing the issue. Is there a ray of sunlight in this politically motivated research? If there is, it is that 33 children have enough nutritional knowledge to understand the difference between healthy and treat foods. This suggests nutritional education is getting through.” l
“Across the world, own brand products play a critical role for customers, enhancing competition and providing value for money on products that customers want and need, particularly everyday staples such as butter, cheese, flour and milk. Our Countdown range has a long history here in New Zealand, and our products are found in pantries and fridges right across the country. Andre Visser
Head of Foodco New Zealand
I’ve recently taken on the role of setting and running the strategic direction for our brands. My previous experience leading the pricing strategy team means I have a great understanding of our business and our customers, particularly what they are buying but also what they want. With more than 1500 products in the range, Kiwis know that when they buy one of our brands, they get a quality product at a good price. We’re responsible for the end-to-end supply chain for our brand products, and regularly audit suppliers against our very high standards. We also have a stringent focus on safe, ethical and responsible sourcing, and increasingly we have independent accreditation for our 100 percent free-farmed pork, free-range eggs and organically produced
and packaged products. In my first few months in the role, I’ve been incredibly impressed with the changes we’ve been able to drive across our Countdown brands for the last couple of years. We’ve reformulated over 1000 of our own brand products to have less fat, sugar or sodium, and we have an industry-leading commitment to removing artificial colours and flavours, and MSG. In the past two years, we have removed around 18 tonnes of sugar in our cereals alone, which equates to 4.5 million teaspoons, and removed six tonnes of salt in our potato chips, bread
RESEARCH FOR POLITICAL LOBBYING Katherine Rich
Chief Executive NZ Food & Grocery Council
“In a small country with a population the size of many cities around the world, New Zealand naturally has a small base of quality academic work suitable for publication. Not surprisingly, when it comes to the peer-review process in New Zealand, quite often peer-reviewers are friends and close colleagues. Unfortunately, this raises questions about how the research gets scrutinised and can lead to concerns about ‘group-think’, where tough, probing questions often don’t get asked before they are published. You won’t be surprised to hear that some of these research conclusions are often used as ‘evidence’ to support calls for regulation or new taxes. Often, the
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demands for new laws or restrictions go way beyond what the research actually says. A recent example, entitled “Prime Minister for a day: children’s views on junk food marketing and what to do about it”, is the latest of what Professor Boyd Swinburn calls “persuasive” research. That is research that can be used as a political campaign tool to put pressure on politicians. With it we saw the hand of the University of Otago’s PR department pushing out their researchers’ latest work to the NZ Herald, resulting in the headline “Kids’ call to Jacinda Ardern: ban junk food ads”. With all the hallmarks of the research being politically motivated, at least the NZ Herald gave context to the research by mentioning that the researchers spoke to only 33 children. Amazingly, some of the 33 talked about making advertising “true” and providing nutritional information. It does make you wonder if they were told that in New Zealand, advertising must be truthful and accurate otherwise the Commerce Commission or the ASA will step in. Were the children also told about the strict rules around advertising OWNED
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#BeautyPositivity April 2019
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guestcontributor
Inspiring
newsolutions
Private label continues to grow in the Foodstuffs stable thanks to a focus on addressing our customers’ expectations for inspiring new solutions.
Pams, Pams Finest and Value are going from strength to strength in absolutely every category and across all seasons. Christmas 2018 was a standout, in a period usually driven by brands focusing on gifting and entertaining. The Pams Finest range allowed us to play in these very key areas, with seasonal product ranges performing well ahead of expectations. From 1 April, I will be making the move to general manager of Foodstuffs Own Brands from New World banner manager. I’m so excited to have the opportunity to lead a fantastic team which is really raising the bar when it comes to developing our private label portfolio. We’ve seen some dramatic change which is paying dividends for our customers, and there’s so much more to come. With a bit of belt-tightening going
Lisa Oldershaw
Incoming General Manager, Foodstuffs Own Brands
ELISSA JOSE
Product Support Manager, Fresh Food, Chilled Food and Liquor, Foodstuffs Own Brands
Growing up an hour north of Auckland and next to the beach, Elissa Jose wanted to be a marine biologist. After completing a BA at Auckland University, she got a job as a product support manager at Foodstuffs, while also continuing to study.
E
ventually, Jose completed a Postgraduate Diploma in Marketing. Jose attributes most of the training she has had to the great colleagues she has had at Foodstuffs. “Over eight years I’ve been lucky to work with some amazing people across the Retail, Merchandise, Own Brands and store teams who have been very generous with their knowledge. I have learned a
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on in our customers’ homes, Private Label has a lot to offer. No-one wants to sacrifice quality while watching their outgoings, and we’re perfectly set up to deliver price sensitive solutions which are packed with flavour, the best ingredients and novel and exciting presentation. The FOBL team has some pretty stiff objectives too when it comes to looking after our community and the environment. We continue to reduce sugar, sodium and saturated fats across the board and roll out the Health Star Rating across all food and beverage
products. Likewise, we have a lasersharp eye on reducing plastic waste and excess packaging in general – all while ensuring products are safe, convenient, fit for purpose and affordable. 2019 promises to be a big year for development, with some true innovation in the New Zealand market entirely new to Kiwi customers. Whether we’re talking frozen vegetables, delectable desserts, ready-tocook meal solutions or top-notch beers and beverages, it’s all on its way into New World, PAK’nSAVE and Four Square. n
lot from them and continue to do so. “The most rewarding part of working at Foodstuffs Own Brands is the pride that comes with seeing our private label products come to life on the shelf. With positive feedback from shoppers and growth in stores, we know the hard work is paying off, and people love the products as much as we do.” Working in a fast-paced industry comes with its challenges. Jose notes her biggest problem as time. “Many great products could be brought to fruition; the challenge is knowing the right time for New Zealand shoppers—when to raise the bar, and when to wait.” Jose’s approach to this is interesting; “Instead of trying to find solutions, think of the right questions.” A simplistic look on problem-solving helps her to keep energised and enthused for finding new ideas and concepts. “At work, I’m genuinely passionate about our industry, and it helps that I work with a lot of people who are too. We are constantly challenging ourselves to bring our internal customers, the Foodstuffs co-operatives, and ultimately their shoppers, innovation, quality, and commercially compelling products.” Drawing upon inspiration from her
father, Jose cites passion and genuine enjoyment of the work she is doing as the primary factor in her continued success. Furthermore, the evident sense of pride in her work means that she can keep an open mind and continue learning about every aspect of her job. With a team around her, Jose looks to inspire others through her work ethic, her ability to listen, and by creating an environment in which fosters positivity. “With ever-changing food trends, pop culture, the economy and even the weather, our offering needs to develop and grow every day, and so does how we do business.” Jose enjoys travelling and believes that parallels can be drawn between keeping an open mind in the workplace and being open to exploring new countries and cultures. Challenging herself to experience new adventures in the real world is just like exploring ways in which to grow and expand business ventures. Looking ahead, Jose wants to keep being curious and learn from everyone that she can. She wants to plan and strive to reach targets but stay open to opportunities. n
BACK IN MARCH 1996 a new little company was started – Rothford International Ltd., with just one client, two guys and a long way to go. Over the years we grew, the name morphed into Rothfords and we became part of the national FMCG fabric, covering the country from Kaitaia to Invercargill. From attending the SIAL Trade Fair in Paris (winning the SIAL D’Or for Best New Product in New Zealand and Best Meat Product in the world with our one and only client back in 1998) to being voted Best Fine Food Brokerage in the 2017 NZ Business Awards, Rothfords has a proud track record. Rothfords has always focussed on being the best – not the biggest, just the best – with excellence our primary goal and always trying to go the extra mile for our clients. Anyway, enough of all the normal agency rhetoric – you can easily find that stuff when you read adverts from other SMA brokerages. It’s time to be real, so we are changing the name of Rothfords to reflect what we are really all about.
No crap, no excuses and people who give it their absolute all for our chosen partners, 100% in, no excuses! From April we will become SURGE SMC – Rothford Sales & Marketing Crew. Our focus will remain on excellence and sales momentum – the Surge. Surge SMC is about honest people, honest hard work and no excuses – 100% in. Surge SMC starts with excellence in bespoke systems and operations, excellence in experience, culture and skilled staff. These things are the wind in our sails, and we pride ourselves in being the Surge behind our clients’ brands, helping breathe life into their growth. What does SMC mean? – nothing and everything: Surge SMC – sales & marketing crew Surge SMC – shelf management crew Surge SMC – social media crew Surge SMC – solutions making crew Surge SMC – so many cool people in the crew
Which do you need and which are you not getting at present?
We don’t pretend to be the right company for everyone and not all companies are the right ones for us – we have a strength in short shelf life, chilled, frozen and on-trend health and wellbeing foods. While others claim to know these areas well . . . who knows – maybe, but perhaps not. If you are sick of poor results and lame excuses, perhaps you should have a chat and together we might be the right fit going forward. If you want us on your boat as a reliable, trusted and experienced crew – give us a call and let’s talk.
SURGE SMC – Rothford Sales & Marketing Crew
Call Tony Trilford 0800 949 333 or visit our website www.foodbrokers.co.nz April 2019
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conveniencemeals REINVENTING THE CONVENIENCE MEAL
Hygge is the Danish art of cosiness and is rumoured to be one of the reasons behind the global shift towards consumers choosing to stay in and eat at home. The new era of staying in instead of going out isn’t because there has been a resurgence in home-cooked meals; it is because of movements like Netflix and Uber Eats. It is no longer ‘cool’ to go out and eat; instead Millennials are opting to stay at home and be comfortable. This has seen a rise in the convenience meal
market. Global Data is predicting a growth of 4.1 percent in the UK food and grocery market. Millennials are a particular driving force behind the trend, assigning more of their home food budget towards convenient options such as deli made soup and rotisserie chicken. The traditional frozen meal no longer suffices. Consumers aren’t just demanding convenience; they are demanding premium convenience. According to Mintel, consumers now seek high-quality food and beverage options that are healthy and can fit into their busy schedules. “Premium, fresh and healthy convenience food and drink are essential now that many people consider themselves to be foodies, which raises their expectations of food quality, flavours and formats,” the Mintel report stated.
A report from the American Frozen Food Institute and the Food Marketing Institute, titled ‘The Power of Frozen’ revealed what consumers sought from the frozen aisle. The research showed that consumers were looking for more variety including more product types and a bigger range of brands like niche and artisan producers. Sarah Marion from The Hartman Group believes that inspiration for quick and easy meal solutions should be taken from UK supermarkets. She notes Tesco, Marks & Spencer, and Sainsbury as being steps ahead of the US when it comes to offering customers varied
and convenient meal solutions. “They offer a huge array of meals with mix and match components and customisable sizing,” said Marion. Inspiration can also be taken from Harmons Grocery in the US. The store regularly devises new recipes as part of the store’s Food to Go dinnertime business. Part of the range includes two large soups packaged with artisanal roles, salmon with garden rice and vegetables, and pulled pork with barbecue sauce and potatoes. Elsewhere Japan’s grocery market continues to be dominated by convenience meals with Japanese producers scrambling to meet demand for a more varied range that doesn’t exceed ten minutes worth of cooking time. Japan currently has more than 200 products available in freeze-dried form a trend that has not yet hit New Zealand shores. Asahi Group Foods has announced plans to increase its production of freeze-dried foods. In the next three years, the company plans to inject $115 million into its food business with $24 million of that going solely towards the production of freezedried foods. Last year saw the company manufacture 270 million packets of convenience food. It hopes to increase that number to 360 million by 2021. Manufacturers and retailers will need to rethink and reinvigorate their convenience offerings in order to keep up with consumer expectations for premium, healthy, convenient meals. n
What sets Alexandra’s apart is its use of quality ingredients. “We use a combination of flavours with our couscous, beans and quinoa including our proprietary spice blends which results in a unique ready to cook meal offering,’ said Murry Kinsella, director of Alexandra’s. The company also packages its offering in transparent packs allowing customers to see the layered ingredients, so the customer knows exactly what they are getting. Alexandra’s meals can be adapted to suit a range of consumer needs. The products can be a full meal or a dinner for two with the addition of meat such as chicken or fish.
The offerings also provide an easy option for vegetarians and vegans. The team at Alexandra’s believes that the convenience meal market will continue to expand in line with international trends. “The challenge for manufacturers will be to make high-quality offerings available. At the moment we see a lot of processed meals being packaged that have minimal visual or nutritional appeal.” With today’s consumers asking for more premium, convenient meals, Alexandra’s is on track to deliver. For more information visit www.alexandras.co.nz or email Murray at murray@alexandras.co.nz. n
This increased demand for premium products has led to a flurry of artisanal producers establishing themselves as market leaders in a category that was once held by major players. Companies such as I Love Pies, Pitango, Alexandra’s and House of Dumplings are now spotted in major supermarkets alongside Wattie’s, Maggi and Continental. But this turn towards premiumisation isn’t just limited to supermarkets. Petrol stations have also started to stock quality offerings for consumers looking for a quick meal. BP is ahead of this trend, having added Krispy Kreme and Wishbone stations to their stores last year.
International Trends
READY TO COOK
Inspired by the cuisines of the Middle East, North Africa and the Caribbean, Alexandra’s offer a variety of healthy and delicious ready-to-cook meals. Alexandra’s now offers a range of ten ready-tocook meals and three puddings. Starting with only couscous-based meals, its selection has expanded to include a pre-cooked, dried bean range as well as two rice meals, and two quinoa-based meals.
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MAKING MEALS EASY In line with the market trend towards healthy, convenient meal solutions, Speirs Foods are set on keeping the momentum of innovation going and have recently launched their new Snack Pot Salads with protein for on-the-go and a range of new fresh Coleslaw and Stir-fry kits, making creative meals easy. “We aim to be more innovative and make people’s lives healthier and easier with fresh, delicious, convenient meal solutions and we believe we’re well on the way to achieving this,” said Angela Thompson, national sales manager of Speirs Foods. “Just on a year ago we launched the new The Whole Mix pre-packed convenience range including New Zealand’s first fresh, pre-packed spiralised vegetable noodles and fresh Grab & Go salads with protein.” Although relatively new to market The Whole Mix has taken out multiple awards (including the 2018 NZ Food Awards Massey University Supreme Award and the 2018 Outstanding NZ Food Producer Awards FMCG Business Outstanding New Product Award) for their spiralised vegetable noodles which have driven increased interest in their business and products
BAGGING THE BURRITO
throughout the market. All of Speirs Foods recipes are developed locally in New Zealand to excite Kiwi taste buds, tapping into flavours Kiwis want and ensuring they’re full of fresh, healthy goodness. With each day the team is growing more of their own fresh vegetables close to their Marton factory to ensure a continuous and fresh supply of their products to market. “In a growing meal solutions market we’re committed to driving growth through innovation, so watch this space for more to come,” said Thompson. For more information contact Angela Thompson, national sales manager at Speirs Foods at info@thewholemix.co.nz or phone 0800 366 3246. n
Consumers are no longer willing to sacrifice taste in the pursuit of convenience. They want high-end, healthy food in a convenient offering. For Cartel Food Co., convenience is a core part of its brand.
The company produces a range of handmade frozen burritos that are ready in just three minutes. “We like to think of our burritos as conveniently frozen and conveniently tasty,” said Cartel’s Jason Philips. The business is meeting this demand by flipping consumers expectations of frozen food on its head and using quality ingredients to produce a convenient offering that doesn’t taste like its traditional counterparts. “We wanted to make a frozen burrito that tasted as close to homemade as possible. We constantly get feedback from our customers about the great taste of our burritos. They are surprised because people have such
low expectations of frozen food. We love it when we get this kind of feedback. It lets us know we are right on track.” High quality isn’t the only offering consumers now seek in the convenience segment. They are also demanding more vegan and vegetarian options. Cartel recently released a vegan burrito that won an award at the Outstanding NZ Food Producer Awards. “We’re thrilled to have received an award for our vegan burrito at this year’s awards.” The new burrito is made using a combination of roast corn, back bean, and chilli and lime tofu. “At Cartel, we try to keep it simple. We make a range of great tasting frozen burritos. We use quality ingredients, and we don’t cut corners. That’s how we roll.” For more information contact Jason at jason@cartelfood.com. n
ORIGINAL MOROCCAN COUSCOUS RANGE Gourmet meals ready to eat in 15 minutes!
Everything you need for a gourmet meal. Just add to boling water and serve on its own or with meat, chicken or fish.
Alexandra Fine Foods (2009) Limited Ph: 09 570 4739 or email: sales@alexandras.co.nz www.alexandras.co.nz April 2019
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ADRIAN McCLELLAN BP GENERAL MANAGER RETAIL AND ASSETS
Adrian McClellan has been with BP for 31 years. Initially starting as an accountant, McClellan made the switch to operations where he undertook multiple roles both in New Zealand and overseas. “During that time I went from looking after financial aspects of the business to frontline retail operations, looking after 250 staff across 14 sites. It was a real baptism by fire. Every day was a new challenge.”
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After a number of years overseas, McClellan made the trip back to New Zealand in 2010, eventually moving to the senior leadership team, responsible for supply, logistics and pricing. “Then two years ago I got my dream role of general manager, retail and assets.” As part of his role, McClellan looks after the 104 BP Connect sites and their staff across the country, as well as the development and growth of the network and offer. McClellan credits BP’s company culture for keeping him in the organisation for so long. “The greatest thing about working with BP is the people. I’ve worked in Wellington, Auckland, Melbourne and London, and I have always found the company culture, people and company values are consistent across the board. I have been challenged in my roles and have also had phenomenal opportunities which I feel very fortunate to have received – it’s just a great place to work.” McClellan believes that one of the biggest opportunities in the industry is convenience. “Convenience was once classified as being a one-stop shop where consumers could get everything that they need. Now it is ordering something on your phone and having it delivered to you,” he said. “With customer demands constantly evolving, appealing to customer’s needs and lifestyles will continue to be a huge opportunity for us.” As part of the focus on convenience, BP Connect has increased its premium on-the-go food offerings and has partnered with brands Krispy Kreme, Wishbone and Häagen-Dazs, referring to the range as ‘Good Mood Food’. “Partnering with iconic brands like these has been hugely successful for us. We wanted to make sure that what we did here gave our customers a visual extravaganza.” These products are currently available across 43 stores, from Taupo to Warkworth, with plans to to grow the initiative in the future. This expansion of premium offerings also translates to the coffee on offer. “We recently added a Single Origin Colombian bean to our offer at Wild Bean Cafe. This light roast delivers a smooth taste with caramel notes, perfect
for both black coffee, and the Kiwi favourite flat white,” said McClellan. As part of meeting customer demand, BP has also launched its first vegan pie. “Our vegan pie was launched in early September last year and has proven very popular. We want to offer options that meet the needs of our customers, and we are looking into additional vegan products.” McClellan credits the power of social media as one of the driving forces behind the initial success of the new vegan offer. “We used social media to do a lot of the heavy lifting when it came to launching our vegan pie and announcing our partnership with Krispy Kreme.” The company isn’t only turning its focus to optimising its in-store offering; it is also developing innovation in technology with the launch of its BPMe app. The application allows customers to load their payment details, drive up to any pump onto the store’s forecourt, select which pump they are parked at, their fuel choice and then authorise the payment. The app has proven to be popular, giving customers the option to use it instead of coming in-store. BPMe also allows customers to pre-order their coffee up to one hour before and have it freshly prepared in time for their arrival, minimising wait time at the coffee counter. Giving back to the community is also important to the BP organisation. The company has been partnering with Surf Life Saving New Zealand for the past fifty-one years and last year celebrated the 25th anniversary of its Young Enterprise partnership. McClellan also spoke about sustainability and explained what initiatives BP has underway in this area. Compostable coffee cups are now available at Wild Bean Café’s across the country, which is supported by a commercial composting solution. “Customers can bring their compostable cups back to 37 of our sites to be commercially composted, and we are investigating options to expand that because offering an end to end solution is important to us.” The company is also involved in a national waste recycling programme, which saves approximately 90 tonnes of waste from going to landfill every month. BP carwashes also use recycled water, which has saved more than 70 million litres of water in the last 12 months, and has worked alongside Vector to install EV charging stations. The company has also so far seen the installation of solar panels at over 10 percent of BP Connect sites, which generated enough power last year to reduce electricity consumption at each of those sites by around 20 percent. 2018 proved to be a busy year for the team at BP and McClellan predicts that this year will be even busier. Among the highlights of the last year were passing the milestone of 100 BP Connect stores across the country, launching the coffee ordering feature on the BPMe app and the installation of the Good Mood Food offer. McClellan and the BP team are continuing to innovate, so watch this space. n
roundtable
Do you think the rise of the millennial consumer will impact the traditional convenience meal?
The Millennial consumer is no doubt at the forefront of changing consumer tastes across most industries and channels, but one important aspect often gets overlooked – younger consumers expect more from retailers and manufacturers. Corporate social responsibility, healthy options and the environment are not just buzzwords for Millennials; they expect that what they purchase and consume aligns with their view of how the world should be. And this comes through loud and clear in the data. Younger shoppers place significantly more importance on the authenticity of what they buy, on the availability of healthier options, on new products coming to market and on environmental concerns – and by and large, these expectations are not being met. For all manufacturers, not just of convenience meals, this means listening to what this age group wants and catering to it with adequate options but also ensuring sufficient options remain for older age groups where these concerns may not be as strong.
Andrew Arnold, Shopper Intelligence
The speed of change within FMCG is predominantly dependent on the speed of culture and underpinned by the advances in improved communication through technology. And leading that change is Millennials. Millennials have grown up in the era of convenience; everything happens faster and easier than it did, say 20 years ago. The ease of meals is a major generational disruptor in today’s fast society. And add to that the savvy, healthy nature of the Millennials; meals must be convenient and healthy. In a recent Forbes article, it was discussed that ‘time-starved and convenience-seeking consumers (led by Millennials)’ are the fastest growing consumer market. The UBS report published earlier 2018 stated that fast food home delivery and convenience easy cook meals sales could see an estimated global increase of 20 percent by 2030 to around $365 billion. With this understanding, it would be remiss for a meal brand to ignore this fast-growing sector. That’s why at Pitango we have been actively working on creating meals that tick all the boxes from health, ease and taste. We are always innovating to include products that are relevant and popular with Millennial subset groups including introducing vegan, organic, gluten-free and vegetarian options.
We believe the convenience meal market will continue to expand in line with international trends. The challenge will be for manufacturers to make high-quality offerings available. At the moment we see a lot of processed meals being packaged that have very little visual or nutritional appeal. The use of boxes to package meals should be afair warning to consumers that what’s inside probably doesn’t reflect the meal inside.
Murray Kinsella, Alexandra's Fine Foods
Mary Boulton, Pitango
FRESH NEW COLESLAW & STIR-FRY KITS MAKE CREATIVE MEALS EASY
Recipes are developed locally to excite Kiwi taste buds Customers can create meals fresh when they’re ready to, using the sachets of dressings and crunchy extras included in the kits
Also available.
0800 366 3246 | info@thewholemix.co.nz thewholemix www.thewholemix.co.nz |
Proudly bought to you by Oriental Merchant (NZ) Ltd Your Asian Food Specialist Contact T: 0800 10 33 05 E: nzenquiries @oriental.com.au April 2019
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Fr oz enDumpl i ngs&BaoBuns+41. 0%
As i anMeal Sauc es+37. 1%
Fr oz enChi l i ,Ok r aandKar el a+221. 7%
VAFr oz enSt eam Veget abl es+24. 3%
Gar l i cPas t es+19. 1%
Pac k agedSal ah+16. 2%
T ot al Naan+22. 9%
Mex i c anI ngr edi ent s+1 1. 7%
VAChees e( Sl i c ed,Pi z z a,Gr at ed)+6. 7%
Fr oz enBur ger+15. 5%
I ndi anPas t es+10. 4%
Cont i nent al Meat+9. 4%
Poppadoms+1 1. 2%
T ot al As i anBot t l edSauc es+9. 7%
Wr aps+6. 2%
Ex pr es sRi c e+6. 7%
As i anPas t es+8. 1%
Cr umbCoat i ng+5. 0%
Pr epac k agedSaus ages+6. 1%
Bot t l edSauc eMar i nades+3. 8%
VAFr oz enChi c k en+5. 2%
Lemon&Li meCook i ngJ ui c e+3. 8%
VAFr oz enPot at oes+4. 7%
and sauce (+5.4 percent), chilled soups (+4.4 percent) and sandwiches (+23.1 percent) also grew strongly [3].
New Generation Gastronomy Meal kit subscription services have a growing presence in New Zealand, with 7 percent of Kiwis having ever tried them and 3 percent regularly using them. In the past week, onein-ten 18 to 44 year olds have used any form of meal kit, either from a subscription service or supermarket [1]. These designed, pre-proportioned kits satisfy the desire to cook balanced, healthy and delicious meals almost from scratch. They eliminate the guesswork, encourage experimentation and customisation in a sustainable, affordable and convenient way. International meal kits within the supermarket delivered +$1.9 million (+18.4 percent) value growth in the last year, driven by brands such as One Night In Mexico, Farrah’s and Marion’s Kitchen [3]. More than 70 percent of New Zealander’s agree that they cook from scratch most of the time [1]. While there is a desire for speed, this is balanced against a deficiency of cooking skills, a desire to do-it-
ourselves all blended with an interest in flavour experimentation and the allure of ethnic and specialty cuisines. Step reduction provides innumerable opportunities to add value and elevate cooking from ‘scratch’ while also delivering the potential for growth across the supermarket landscape.
Convenience and Foodservice Convergence
New Zealanders are extending their search across channels for convenient meal solutions that suit all occasions. It is only logical therefore, that
channel blurring between foodservice and convenience continues, especially since on-the-go food growth was highly resilient during 2018 petrol price hikes. Offering more meal solutions strengthens the petrol and convenience channels proposition as a destination, with on-the-go value providing growth of +6.3 percent (compared with +2.1 percent total). Hearty hot foods: hot dogs, bites, Cordon Bleu and toasties as well as healthier cold foods: sandwiches, wraps and salads are all delivering [4]. In New Zealand, a partnership emerged six months ago between BP
and Wishbone, with BP stocking Wishbone ready-meal solutions further highlighting progress in this space.” n [1] IRI 2018 State of the Industry Report - Grocery [2] NZ Stats Retail Trade Survey Dec 2018 [3] IRI MarketEdge (Grocery) New Zealand MAT Value 03/03/19 [4] IRI MarketEdge (Petrol & Convenience) New Zealand MAT Value 17/02/19 [2 year trading]
SAMANTHA FIRSOW Market Insights Consultant Solutions & Innovation at IRI
Therefore, are you thinking about?
SPEED
offering solutions that shave off time, make life easier or offer flexibility?
AFFORDABILITY
considering customer trade-offs and limiting “convenience tax”.
WELLNESS
supporting healthy living or are your products inherently healthy?
EXCELLENCE
delivering restaurant quality, premium, flavoursome options?
INSPIRATION
monitoring the desire for experiences, experimentation & ethnic foods?
IRI is a leading provider of big data, predictive analytics and forward-looking insights that help CPG companies, OTC health care organisations, retailers, financial services and media companies grow their businesses. With the largest repository of purchase, media, social, casual, and loyalty data, all integrated on an on-demand, cloud-based technology platform, IRI helps to guide its more than 5,000 clients around the world in their efforts to remain relentlessly relevant, capture market share, connect with consumers and deliver market-leading growth. Move your business forward IRIworldwide.com
April 2019
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SIAL A RECORD-BREAKING YEAR
When SIAL China 2019 opens on May 14 in Shanghai, it will be 23 times larger in scale, host up to 13 times more exhibitors and welcome eight times as many professional visitors than the first edition.
CHINA’S CONSUMPTION UPGRADE
In preparation of the estimated 4,300 exhibitors and 112,000 professional visitors expected to attend the 20th edition, SIAL China will occupy all 17 halls and 199,500m2 of exhibition space at Shanghai New International Expo Centre for the first time. For the first time, SIAL China will host a Functional Foods Hall to address
the growing popularity of healthy products across the region. In total, SIAL China 2019 will host 21 food sectors. The growth of these four sectors is driven by consumer adoption of New Retail, food e-commerce, and increased demand for fresh foods, convenience, and imported goods.
WHAT’S ON AT SIAL 2019? SIAL INNOVATION: SIAL Innovation showcases the most innovative exhibitor food and beverage products ready to meet Asia’s consumer trends and is the show’s most popular event.
flair to impress the team of eight judges.
LA CUISINE: In partnership with World Association of Chefs’ Societies, La Cuisine sees Michelin-starred chefs provide demos, recipes and a worldwide tour of local food. Five domestic and three international teams will take part in a live cooking competition. Chefs will have to demonstrate creativity and
SEAFOOD FEST: In partnership with China Aquatic Products Processing and Marketing Association, Seafood Fest is a unique cooking event using fish and other ingredients.
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RETAIL & HOSPITALITY FORUM: Debates, conferences, interviews around major topics shaping food future.
CHOCOLATE WORLD: To meet China and Asia markets’ demands for
OWNED
SIAL China will celebrate its 20th edition from May 14-16, 2019 at the SNIEC in Shanghai. To learn more about SIAL China or to book an exhibitor stand, please visit www.sialchina.com. Professional visitor registration is free and opened in the first half of January 2019. n
premium chocolate, as well as the desire to showcase by international leading chocolate brands, SIAL China specially designed Chocolate World. WINE INNOVATION FORUM: Showcasing top speakers from the international wine world together with the best local wine experts, the Wine Innovation Forum will explore a variety of wines from Portugal, New Zealand and the USA. The keynote speaker for 2018 with be David Forer MW. n
Ever since sweeping socioeconomic reforms were introduced in China in the 1970s, its economy has been one of the fastest-growing in the world. It is currently the secondlargest economy in the world, trailing the USA, but is growing at a faster rate. China is an appealing market for exporters, thanks in no small part to the “consumption upgrade” trend. Easier access to online retail and tariff cuts for imported products have contributed to a boost in spending by Chinese consumers. Chinese consumers are eagerly purchasing high-quality food products in higher price brackets. Data from e-commerce platform Tmall, taken during the build-up to Chinese New Year, found that food and beverage remained the highest earner during the period. “People now have a much higher income, so people have more money to spend on food,” said Chen Jiahe, chief strategist from Cinda Securities in Shanghai. Michael Jiang, VP and general manager of Greater China at Kerry, believes that Chinese manufacturers are moving from “made in China to innovative in China” right across the food and beverage industry. n
CALLS FOR INNOVATION
SIAL Innovation showcases the most innovative exhibitor food and beverage products ready to meet Asia’s consumer trends. At SIAL China 2018, about 75 percent of the 110,635 professional visitors visited SIAL Innovation, making it the show’s most popular event. In 2018, SIAL Innovation received a record 638 product submissions of which 164 products were shortlisted and reviewed by a panel of professional judges from global food industries such as XTC World Innovation, industry media, and academia. In 2019, ten products will be selected as finalists, based on the innovation and benefit to consumers and the industry, by a panel of experts. All chosen products will be placed on display at the Innovation Event, allowed to use the SIAL Innovation Logo in future promotional material, and compete for the SIAL Innovation Gold, Silver, and Bronze Award. All submitted products will be selected and awarded based on the innovation and benefit to consumers
and industry in terms of technology, packaging, ingredients and business value. Winners of the SIAL Innovation earn a free spot on the World Champions Tour which displays winning products at the innovation event all SIAL Network shows, including SIAL Paris, SIAL Interfood in Jakarta, SIAL Middle East in Abu
THE ASIAN WINE MARKET
Dhabi, and SIAL Canada in Montreal and Toronto, over a 12-month period. The 2019 SIAL Innovation finalists and award-winning products will be placed on display May 14-16, at the SIAL Innovation area. Winning products will be announced on May 14th, during a special afternoon awards ceremony.
Registration for SIAL Innovation is free to all SIAL China 2019 exhibitors, and products must have been created or released to market later than May 2018. After submission, a SIAL China representative will contact you with additional information. The registration for SIAL Innovation 2019 is open and free for all exhibitors. n
CONCENTRATING ON JUICE Mintel research has shown that almost half of Chinese juice consumers drink juice with a meal, regardless of whether they are dining at home or at a restaurant. “However, Mintel research shows that the frequency at which they drink juice with food lacks in comparison as the multiple meals consumed each day,” wrote Mintel analyst Jennifer Zegler. Juice producers can capitalise on this trend by creating and marketing juices that pair well with Chinese flavours, “promoting the flavours and functionality of juice that match well
with food.” Pairing complementary ingredients is essential, and with a cuisine as historic and diverse as China’s, there is any number of combinations. One suggestion from Mintel is to pair juices with hotpot – a hot broth used to cook vegetables and meat. n
FOOD TRENDS HITTING ASIA In Western culture, social influencers have a lot of sway when it comes to the fashion and beauty sectors. In Asia, however, the span of their reach is much broader. Across a variety of social media platforms, influencers can quickly promote a brand to thousands of followers via pictures, messages, or videos Currently, red wine is the wine of choice in Asian markets due to its perceived health benefits. Inversely, large volumes of white wines are harder to sell, even with influencers’ help. Unlike western markets, Chinese consumers, for instance, do not buy their wines with complementary foods in mind—the focus is on the branding and the way it exerts luxury. Sarah Heller, the founder of Heller Beverage Advisory and a Master of Wine, said that packaging and appearance is the key for wine producers to enter the Asian market. “In China, people want something striking and classy. It is essential in the Chinese market that it is class, particularly above a certain price point.” China is New Zealand’s biggest
export market in Asia, with 2.5 million litres of wine imported in the year ended in June 2018. Despite the different culinary cultures, the Asian market will be a hard one to crack for New Zealand wineries—especially ones looking at promoting white wines. In Asia, hot water is the most common drink of choice when eating a meal. Debra Meiburg, Hong Kong-based Master of Wine, said that it would take decades for Chinese consumers to convert red to white wine as there is a pass perception of sauvignon blanc and white varieties being budget drinks, and are commonly only sold by the glass in China. Luxury is the way to crack the market—at least for sales by the bottle. If it’s not luxe and does not have ‘wow factor,’ selling large volumes in China is not possible, said Meiburg. n
Asia’s food and beverage market is a breeding ground for innovation. A rise in health-conscious consumers, rising incomes and busier lifestyles are all contributing factors when discussing Asia’s food and beverage trends. The Nut and Seed milk market will continue to increase with more alternatives joining the shelf. The range of milk alternatives will continue to expand due to innovations coming to market such as pea milk and sesame seed milk. Ruby chocolate is continuing to gain popularity in Asia thanks in large part to social media which has proven to be a driving force for the fourth chocolate. Ruby chocolate was only introduced last year, but already 40 percent of Japanese
consumers say that they are aware of the pink treat. Convenience still dominates with food producers scrambling to meet the demand for a more varied range that doesn’t exceed 10 minutes cooking time. Freeze-dried food is proving particularly popular due to its ease of use and quick cooking time. Plant power continues to trend. A Mintel report revealed that 39 percent of urban Indonesians and 34 percent of Thai consumers alternative sources of protein such as plant, dairy and grains. This trend has led to a surge of protein alternatives derived from pea, mung bean and soy. Tap water has been replaced with more innovative forms of water. Previously coconut water has dominated the alternative water market, but that is about to change with a surge of newcomers to the market such as aloe water and cactus water. n April 2019
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DRINKABLE BROTH
SPARKLING FLAVOUR
Answering the call for more Keto friendly food, Bonafide Provisions has launched a Keto Broth, a heat-and-go drinkable bone broth. The organic bone broth promotes ketosis helping the body to digest fat and produce ketones. Keto Broth contains no additives, preservatives, fillers, stabilisers, sweeteners or preservatives. The range is offered in three flavours: Lemon, Turmeric, Grass-fed Butter and MCT Oil; Lemon, Turmeric, Coconut Oil and MCT Oil; and Grass-fed Butter and MCT Oil. The broth is packaged in 8-ounce cups with 15 grams of healthy fats and 9 to 10 grams of protein.
Meeting consumer trends, UK drink producer Clearly Drinks has revealed a new line of flavoured water. Upstream contains zero sugar, natural flavourings and just three calories per can, providing a healthier alternative to carbonated soft drinks. The new range includes three variants – Grapefruit and Bergamot, Lime and Pomegranate and Cucumber and Mint. Upstream drinks are available in 330ml cans and will be stocked in supermarkets across the UK.
MIXING IT UP Milkybar Mix Ups are set to hit shelves in the UK and Ireland. The new release from Nestlé is to mix things up, with its iconic Milkybar range combining white and milk chocolate for the first time. The new range will feature a selection of white chocolate buttons with a cocoa filling and milk chocolate buttons with a milky filling. The new innovation will be available in four sizes; a single 32.5g pack, a 78g pouch, a 95g sharing bag and a large 196g ‘more to share’ bag.
PREMIUM PLANT MILKS Premium producer of plant-based milks, Three Trees has launched two new unique flavoured nut milks: Pistachio Nutmilk and Black Sesame Nut and Seedmilk. Made using just five ingredients the Pistachio Nutmilk has a rich, buttery flavour, while the Black Sesame Nut milk has a bold dark colour with a thick consistency and hint of sweetness.
TEA ON THE GO
SMOOTHIE X KOMBUCHA American food producer Odwalla has launched a first of a kind product into grocery stores. Revealed at a recent expo, the company previewed its new Odwalla Smoobucha range. The new drink is available in three flavours Citrus and Guava, Berry and Ginger, and Apple and Greens. A combination of a smoothie and pasteurised kombucha, the range is the perfect mix of function and flavour.
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Teatulia Organic Teas are catering to the hot summer weather with its new tea sodas. The bold tea notes are perfectly combined with fizz to provide the perfect refreshing drink. These new drinks will appeal to a wide range of consumers with notes of both iced tea, sparkling water, and soda. The flavours available will be; Black tea with pineapple, peach, lime and cucumber; Green tea with peach, blackberry, lime and cilantro; Mint tea and hibiscus lemonade; and Lemongrass tea with wild berry, lime and lavender. Each serving only contains 16-20 grams of sugar, catering to those seeking out smaller sugar intakes.
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