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April 2020 • Vol. 13 No. 4
Supply chains disappearing into the COVID Vortex
Sparkling
NO SUGAR, LIVE Naturally CULTURED
Bursting with
ORGANIC ACIDS
(see page 15)
Packs a
PUNCH
in
TEA POLYPHENOLS
editorialcomment
ATTENTION GROCERY SUPPLIERS
ONLINE BOOM OR BUST FOR SUPPLEMENTARY SUPPLIERS While supermarkets have played a key tole in the lockdown, and will continue to do so, an interesting side issue has been the development of online activity in the grocery category. In addition to the two big players leading the way, a number of other suppliers entered the space offering service levels we haven’t seen before. But the big question is what the consumer may do when this pandemic disappears, as it will. Early research both here and overseas indicates there just may be a future in this sector of the market, especially for foodservice suppliers who discovered this new niche when their regular customers were closed.
Sarah Mitchell Editorial Director
sarah@reviewmags.com
Clearly the level of on-line food and beverage shopping will not continue at its pandemic level because the instore experience and selection is far greater, but there is surely a section of the public who will continue to buy from the suppliers they used for home delivery during lockdown. Certainly, the pandemic has brought lifestyle changes for all of us but the big question that will remain is whether the consumer will go without the in-store specials and experience, pay for the cost of delivery and be at home to receive goods within the available delivery times. And of course, whether the foodservice cash & carries will continue down this street when their normal customers come back into the market. There has been one supplier already that has sent out an email thanking customers for purchasing fruit and vege from them during lockdown, but now it was level 3, they were not supplying the public anymore and going back to their core business. The continued activity could well be focussed on nom-perishable categories, but the fresh area is one that is personal in-store choice and often not one that consumers like to be selected by either a robot or a personal shopper no matter how experienced.
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
food& grocery COUNCIL NEW ZEALAND
www.fgc.org.nz
Enjoy the issue.
departments
03 News 06 Rising Star 08 Store of the Month 12 International Aisle 14 Global What's New
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SupermarketNews is published under license. Please direct all enquiries and correspondence to SupermarketNews. The opinions and material published in this edition of SupermarketNews are not necessarily those of the publishers unless specifically stated. All material in this publication is copyright and may only be reproduced with the consent of the publisher. Copyright 2020
CHAIRMAN PUBLISHER GENERAL MANAGER EDITORIAL DIRECTOR EDITOR ADVERTISING SALES SENIOR DESIGNER GRAPHIC DESIGNER
ISSN No.
PETER MITCHELL Tania Walters, tania@reviewmags.com Kieran Mitchell, kieran@reviewmags.com Sarah Mitchell, sarah@reviewmags.com Caitlan Mitchell, caitlan@reviewmags.com Felicity-Anne Flack, felicity@reviewmags.com Harsha Thanthriwatte, harsha@reviewmags.com Raymund Sarmiento, raymund@reviewmags.com Debby Wei, debby@reviewmags.com
1173-3365
Suite 9, Level 3, 20 Augustus Tce, Parnell, Auckland. PO Box 37140 Parnell, Auckland Tel (09) 3040142 Fax (09) 3772794
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food& grocery COUNCIL NEW ZEALAND
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 a conference that covers industry issues and is addressed by international speakers. The organisation monitors product quality, sets standards for the industry and runs national competitions and awards.
THE NEW ZEALAND BEVERAGE COUNCIL (NZBC) P.O. Box 47, AUCKLAND 1140, New Zealand. Email: info@nzbc.nz Phone: +64 9 309 6100 DDI: +64 9 302 9932
news ART FOR GOOD
VILLA MARIA MOST TRUSTED WINE Villa Maria Estate has been voted as the Reader’s Digest Most Trusted New Zealand Brand for 2020. It is the third time in the last five years the family-owned New Zealand winery has won this award. Reader’s Digest approached New Zealand consumers asking their opinions on what brands of products and services are important to them. This year, more than 1,400 New Zealanders were interviewed to decide on winners in each of the Most Trusted categories. Cost, quality and desirability of brands and its products or services are all important factors for consumers according to the survey. “We are New Zealand family-owned and have been part of the Kiwi wine lover’s repertoire for almost 60 years, and this is something we’re immensely proud of. This trust in the brand suggests consumers will continue to turn to Villa Maria for world-class wines fitting for all occasions for many years to come,” said Villa Maria CEO, Justin Liddell. Villa Maria has been New Zealand’s most awarded winery for over 40 years and this accolade comes just weeks after being named one of the World’s Most Admired Wine Brands and the highest-ranking New Zealand winery by Drinks International. n
Four Square and New Zealand artist, Dick Frizzell, have teamed up to produce an artwork print with all profits of the prints going towards supporting New Zealand charities. There are three New Zealand charities customers can choose from when they purchase a piece of art, KiwiHarvest, Lifeline and Women’s Refuge. “Four Square’s DNA is by locals for locals, and we have a responsibility to look after all New Zealanders and our communities, especially during this challenging time,” said Kamran Kazalbash, Head of Marketing and CX for Four Square. “We collaborated with Dick to identify how we could support local charities who are experiencing an increase in demand due to COVID-19. “KiwiHarvest, Lifeline and Women’s Refuge are incredible charities who have a presence in every community across the country. We’re giving customers the option to choose which charity they would like to support so they can have a positive and direct impact on a charitable cause that is
FRUCOR SUNTORY APPOINTS CEO
Frucor Suntory has announced the appointment of Darren Fullerton as CEO (Australia and New Zealand). Fullerton has a wealth of knowledge about the beverage industry from his extensive career at PepsiCo, spanning 18 years across multiple functions. As CEO (Australia & New Zealand) for PepsiCo for a number of years, Darren brings a wealth of market and product knowledge to Frucor Suntory. Most recently, he led Winc, a $1bn+ market leader in office products and business solutions across Australasia. “It’s truly an honour to be joining the Frucor Suntory team and to be able to play a part in the next incredible chapter of a business I have always had great respect for,” said Fullerton. “Strong brands, a vibrant culture, and a thirst for success are hallmarks of most successful businesses – and I look forward to building on these inherent strengths at Frucor Suntory.” n
COUNTDOWN OPENS DARK STORE Countdown has opened New Zealand’s first purposebuilt, and permanent, eStore in Auckland, which will help the supermarket business service the significant and growing demand for online shopping delivery. The 8800sqm store in Auckland’s Penrose looks like a regular supermarket, with a butchery, bakery, shelves of packaged grocery items, fresh fruit
and vegetables. A team of 200 personal shoppers (including 105 people brand new to the Countdown business), over a mix of full and part-time roles, will run the dedicated eStore and complete online orders for customers from ten of Countdown’s busiest Auckland supermarkets. The Penrose eStore aids the company’s swift response to the Covid-19 demand, which has already seen six stores temporarily close to help increase online shopping capacity and ensure delivery services can be prioritised to those most in need at this time. “Demand for Countdown’s online shopping service was in significant growth even before the Covid-19 outbreak but the situation we are now in has made it even more critical to Penrose opening on time,” said Countdown’s General Manager Digital, Sally Copland. Operating 24 hours a day and seven days a week, the 8800sqm Penrose eStore will have the capability to fulfil more than 7500 online orders each week, thanks to a layout based on sales data that increases picking efficiency. n
close to their heart.” The artwork print, in true Dick Frizzell style, features Mr. Four Square and his family, reminding New Zealand to stand together in solidarity during an unprecedented time. Mrs. Four Square and their two children are ‘new’ characters and have not been featured widely before. Dick will also personally sign every artwork print. n
UNILEVER DONATES HAND SANITISER Unilver ANZ has donated 30,000 cans of hand sanitiser to Kiwis in need as it redirects existing deodorant production facilities to meet national demand and help in the fit against Covid-19. The donation – valued at over NZ$225,000 – was made to Foodbank Aotearoa New Zealand, to manage distribution across New Zealand. The new 150ml aerosol hand sanitiser, which contains over 70 percent alcohol and kills 99.99 percent of germs without water, will also be made available to the wider public and will hit shelves by the end of May in leading New Zealand supermarkets. “Unilever has a long history of contributing to personal hygiene in New Zealand and across the world – beginning with the creation of Sunlight soap by Lord Lever in the late 1880s,” said Nick Bangs, general manager, Unilever New Zealand. “We believe we have a social, medical, and moral obligation to make hand hygiene readily available. That’s why we’re rapidly innovating and redirecting some of our manufacturing facilities to increase the supply of essential products in New Zealand.” n
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news SUPPLIES FOR TOKELAU FOODSTUFFS NI LAUNCHES ESSENTIAL BOXES
Gilmours Mount Roskill have joined a joint effort to supply a food security package for Tokelau to ensure its residents have grocery essentials during Covid-19 restrictions. An effort between the Government of Tokelau, the Tokelau administration team based in Apia, Ross Arden (Administrator for Tokelau), MFAT New Zealand and Gilmours Mount Roskill, four shipping containers full of grocery and household essentials embarked on a sea voyage bound for Tokelau on April 21. Departing from Auckland Port, the boat will arrive to Apia, where the shipping containers will be moved to a smaller boat bound for Tokelau’s three atolls. The shipping containers contain
shelf-stable essentials such as long-life milk, rice, pasta, canned goods and cleaning products. “Tokelau is a very vulnerable and isolated nation with limited selfresources,” said Robert O’Halloran, Contractor for the Government of Tokelau. “We needed a ‘one stop shop’ where Tokelau could purchase grocery essentials. We also needed to find a wholesale partner who could receive the shipping containers, pack them full of grocery essentials and send them to the port for loading, which is no easy feat in general, let alone during a global pandemic. I called Gilmours Mount Roskill, knowing they would have the facilities and supply, and they didn’t hesitate to lend us a helping hand.” n
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Foodstuffs North Island is piloting New World Essential Boxes to give New Zealanders an express shopping option to get their grocery essentials quicker and more conveniently during the Alert Level restrictions. The pilot launches today featuring a suite of three essential boxes and will be trialled in central and outer central Auckland suburbs. The New World Essential Boxes are powered by Gilmours, Foodstuffs North Island’s wholesale brand, which has the delivery fleet and access to wholesale quantities of product enabling the New World brand to increase online order capacity for its customers. “We’re doing our best to keep innovating during the lockdown with our primary goal of meeting the grocery needs of all our customers,” said Chris Quin, CEO, Foodstuffs North Island. “No matter the Alert level, New Zealanders are looking for options as to how they can get their grocery essentials so they can stay home and stay safe.” The New World Essential Boxes are ideal for individuals or families who are looking for an express shopping option, or for the elderly or vulnerable who are unable to leave their homes. The boxes can also be purchased on behalf of someone else, saving the recipient a trip to the store. In addition, for every box purchased, New World will make a donation to Eat My Lunch to help feed Kiwi kids in need. n
COUNTDOWN FASTTRACKS ROTOTUNA STORE Countdown has opened its brand-new store in Rototuna, one month earlier than planned, with the store initially solely focused on the significant demand for online shopping seen in the wake of the Covid-19 pandemic. As well as home delivery, the new Rototuna store will offer Hamilton locals contactless convenience with a store-toboot Drive Thru for online customers using Countdown’s Pick Up service. Originally set to open at the end of May, Countdown’s general manager digital, Sally Copland said the Covid-19 environment meant the supermarket needed to act swiftly and change course. “With New Zealanders staying home for the lockdown, more people than ever want groceries delivered to their door or ordered online for pick up. We made the call to open our Rototuna store early as an online-only fulfilment site to help increase our online shopping capacity in the Waikato area and support more customers,” said Copland. “We’ve already closed six other stores temporarily around the country to support online shopping, and last week we opened the first dedicated eStore in Auckland. All of this is designed to help increase the amount of pick-up and delivery we can offer to Kiwis at this challenging time.”
“Opening Rototuna first for online orders means our personal shoppers can shop for our customers without getting in the way of other customers in the store aisles. We’ll also be packing online pick up orders directly to the car boot – giving our customers a contactless experience to collect their groceries without leaving the car. With physical distancing in place we’re expecting this to be a popular choice for people who are able to leave their homes.” Operating 12 hours a day and seven days a week, the new Rototuna store will have the capability to fulfil more than 2,500 online orders each week and service the wider Hamilton region. A date for public opening will be decided later down the track, expected to be in late June 2020. The supermarket will also be the first Countdown store in the country to test a range of new technologies when it opens to walk-in customers, including the deployment of a safety robot. The 6-feet-tall robot, affectionately named ‘Kai’ by the Rototuna team, will roam the store scanning for potential safety hazards on the floor, which the team will then respond to. It is also able to identify gaps in shelves, assisting the team to keep popular products stocked. n
LEADING THROUGH COVID-19
As I walked my dogs down the street yesterday it was a very strange feeling, people walking on the road to avoid me, very few if any cars, but people were friendly, but you could tell some were nervous.
Gerry Lynch
CEO, Delmaine Fine Foods
INTEGRATION
In times of crisis your leadership will be tested, and your people expect you to step up to help them to feel safe. So firstly, what can you do to look after yourself? If you are not looking after yourself then you can’t look after anyone else. Understand how you are feeling – not Thinking – feeling and have an outlet to share this with. It could be a colleague, your partner, a friend, but it is important you have someone you can talk to regularly. Try and keep to as much of your routine as you can, get exercise even if it is a walk around your street. If you used to go to the gym, be creative and
HQ MANAGEMENT
find things at home you can use for weights. Eat well and try to get more sleep. Think about ways to ‘De-Covid’, tune out, try a mindfulness app (headspace or the free app smiling mind), try some Tai Chi on you tube – here is the guy I go to Tai Chi with who I am now seeing virtually https:// www.youtube.com/watch?v=4iO5_ UrMUmQ. Put your phone away at a certain time and stop listening to the news. Find another hobby or something else to watch. What your team need from you? Calm - Your team need you to demonstrate calmness during a turbulent time. If you are panicking and all over the place that will raise their anxiety. Listening – Your team will have concerns, they want to know that you are not only listening to them, they want you to demonstrate that you are listening to them by you repeating back to them and showing it in your actions. Communication – They want to see honest and authentic communication, not policies and procedures. Share what you are going through – some humility goes along way. Try to ensure you communicate at least daily to everyone in your team, and if you are the CEO/ GM everyone in the business. If everyone doesn’t have a company email address, get their personal
emails – communication from the top, regularly, will help people through this. Fun & Connection – Have a bit of fun, keep spirits up, humour is a great way to reduce stress Act with Compassion – You may have to make some tough choices, people maybe laid off, or take reduced hours. As a leader you are there to make these tough calls for the good of your whole business, so make the call but be very cognisant of the impact it will have on your people and that you ensure you do what you can to help people understand why you have had to make the call and what you will do to help people. Don’t just share policy with them, this is an unusual situation so will most likely not be in your policy. If you have isolated someone, for no fault of their own, who could otherwise come to work and you are asking them to take annual leave, is this fair and compassionate? Remember that what you do in a crisis and how you treat people will stay with them; they will reward you for treating them well and for compassionate leadership, they will reward you with a lack of engagement otherwise. Take care through this time, I wish you well and if you need any support please contact myself or Liz May at ShopCare (Liz@shopcare.org.nz) who can help you through this crisis. n
MOBILE APP
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CALUM JAMIESON Store Manager New World Hillcrest
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New World Hillcrest store manager Calum Jamieson takes every professional opportunity to grow his knowledge of the beer, cider and wine categories for the benefit of his team and customers. Throughout his time in hospitality, including as a restaurant owner, Calum developed his palate through years of wine tasting before taking a greater interest in the beer industry. Having previously been selected as an associate judge at the New World Beer & Cider Awards (2016-2017) and New World Wine Awards (2018-2019), he most recently put his hand up to be a steward at the 2020 Beer & Cider judging event and even tagged along on a supplier’s Fresh hop harvest in late summer to see how it all worked.
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met my wife while studying at Waikato University. She is a teacher now, but we both have a long history working in hospitality together, owning The Woodbox restaurant at Mystery Creek Wines before leaving in 2010,” said Jamieson. “While owning The Woodbox, we were nominated for Cuisine magazine’s top winery restaurant three years in a row in their annual awards.” Jamieson has a Diploma in Marketing and a BA with a Minor in Food Science – one would argue that this is the perfect grounding for working in a supermarket. Growing up, particularly throughout high school, he had always wanted to own a restaurant and remembers having an interest in food and had various jobs in the industry. In 2010, one regular customer at The Woodbox, who also happened to own a Pakn’Save, had noted his strong work ethic, great customer service and suggested to him to give supermarkets a try. It wasn’t long before Jamieson found himself working at Pakn’Save before moving to New World for the last three years. “I love having the ability to support my team and people, and being there when they have an important question, challenge or opportunity. I think a great culture helps set priorities and it’s not about work being the number one all the time.” Jamieson believes that family, hobbies, and community are all important in creating a great culture. A big focus is to enable this balance alongside having great customer service. “At Foodstuffs, we have a great focus on being customer driven. It’s not about driving a commercial business and hoping the customer will fit in with us. Decisions are made around how to best suit customer needs.” New World Hillcrest has recently re-merchandised to include many in-demand skus to the front of its store for customer convenience and also to increase accessibility to popular items. “Our customers expect and deserve the best – product range, sustainability and so on. It can be a challenge to deliver on it all, all the time, but we always do our best to innovate – from providing the freshest products and reducing single-use plastic where we can, to offering the best wines and beers. We always try to be there for everyone and bring something different for each customer based on their needs.” Alongside his unwavering goal to always be there for his family, Jamieson is currently aiming towards entry store ownership in the coming years.
I love having the ability to support my team and people, and being there when they have an important question, challenge or opportunity. I think a great culture helps set priorities and it’s not about work being the number one all the time. “In the grand scheme of things, I’d really like to look back on my life and know I’d made a difference in my community and beyond.” A number of people have provided opportunities for Jamieson over the years and there are a handful who he looks towards for guidance and advice, and in taking opportunities he has been presented with has taught him many valuable life lessons. “Being open to new ideas, and respectful, and that you can do well, but it is more than that, it is about treating people well too.” In particular, Jamieson thanks Tony Rider and Malcolm Boyd in having been strong leaders and employers. While he is a great talker, Jamieson is also a great listener and this is a key focus when it comes to his team and customers. “If they have a problem, I am always here to listen and empathise, find the real issue and understand where they are coming from to find a resolution. To overcome conflict, you need to work out how to meet people halfway, and clear and open communication always helps.” Despite being a keen traveller, and having loved his time in Europe and the UK, Jamieson believes there is no place like home and finds himself incredibly spoilt living in Cambridge with his wife and children. In his spare time, he enjoys to get out and about, play sports, running and biking with the kids, however, it is the family time that he values most. n
OUR GROCERY HEROES
At the halfway point in the Covid-19 lockdown there have been lots of grocery heroes, and I’d like to acknowledge some of them. Katherine Rich
Chief Executive NZ Food & Grocery Council
AVAILABLE
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t’s a frantic time for the sector right now, with suppliers and supermarkets working overtime to ensure the huge public demand for groceries is met. And with people eating all their meals at home it’s clear this will continue for some time yet. Having pantries filled with food seems to give people an important sense of comfort in such times. Most shoppers have been abiding by the rules and going on one-person trips to the supermarket. Yes, there have been long queues, but most accept this is part of maintaining safety for everyone during Alert Level 4. I’m thankful the message is getting through to shoppers that an empty shelf is not cause for alarm and that there is only a short time lag before the shelves are replenished during that day or overnight. Since the early days of the pandemic, the main partners in the grocery supply chain – the suppliers, the supermarkets, and the logistics companies – have been very busy planning ahead to ensure systems chain remain robust and are meeting consumers’ needs. The Food & Grocery Council (FGC), Woolworths New Zealand and the Foodstuffs businesses have been in regular contact to discuss gaps in supply and to try to foresee new challenges. As an example, in the weeks before
the lockdown, as the public began pantry-loading (some of it panicbuying), the supermarkets began stepping-up the number of deliveries to their stores. In response, many suppliers assigned top staff to be on call to make instant decisions should there be any supply chain issues. Not surprisingly, hand sanitiser was one early product that was pounced on, flying off the shelves like never before, and suppliers did have trouble dealing with that surge in demand. Surprisingly, toilet paper was another, and though we were never going to run out of it (it’s manufactured at three sites in New Zealand), the supply chain responded quickly to increase production to keep up. FGC, due to its position on the National Emergency Management Agency Household Goods Working Group and through regular contact with other government agencies involved in the COVID19 response, has been able to keep manufacturers up to date with latest developments. We set up groups to answer supply questions and are feeding those into the updates we provide to the Government and the wider industry. We’re also welcoming non-FGC companies into our networks and making our regular updates available to them. But while suppliers and supermarkets have been frantically busy, many of us have been able to do
it from the comfort of our home or our office, safely in bubbles of one sort of another. We haven’t had to front up every day and every night, working long hours to manufacture or deliver products, unload, fill the shelves, pack click and collect or home delivery orders, and then deliver them, too. Nor have we had to put up with panicky shoppers. That’s all been left to those spread the length of the supply chain – those in fields, the factory workers, the distribution people, the truckies, the merchandisers, and the supermarket staff. Those who are doing this at the grocery frontline are our grocery heroes! A big thank-you to all of them. They’re part of a huge team effort that’s providing New Zealanders with many of the necessaries of life and making it much easier for everyone to get through this. As FGC Chair Mike Pretty said in a note sent to FGC members, “Our industry is called Fast Moving for a reason. Crises come in different shapes and forms, but we have the skill and the resilience to prevail in all circumstances. We can overcome every challenge.” And we can. Take a bow – you’re all heroes. n
Available at selected New World & Pak’nSave stores
NOW!
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We want to thank our 39,000+ strong workforce, suppliers, manufacturers and other partners who have worked tirelessly over the past month to keep New Zealand fed and our people and customers safe. We cannot deliver for New Zealanders alone and we’ve all played an important role looking after one another. The team at Foodstuffs thanks you for your hard work and dedication.
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storeofthemonth
FOUR SQUARE FRANZ JOSEF
OWNERS CUSHLA JONES & CHRIS ROY
After leaving school at aged 16, Cushla Jones started working at the local fruit and vege shop in her hometown in Fairlie, where she started to find her passion for the grocery industry. It wasn’t long before she found herself working her way up the grocery ladder as a trainee manager with Coles in Sydney in 1985. Shortly after she moved back to Christchurch and spent 13 years at Hornby’s Supervalue, which has since been turned into a Pak’nSave. Cushla was an assistant store manager looking after the grocery department and then transitioned into a personal manager role as the company grew.
H
er dream has always been to own her own store, and also to meet a nice farmer. These dreams were realised in 2001, when she was approved to apply for Four Square ownership, which was around the same time farmer Chris Roy came on the scene, and in 2002, the pair moved to Franz Josef. Chris retired his gumboots and farming gear and became a green grocer alongside Cushla. “We love the complexity of the supermarket industry,” said Cushla. “We love the innovation, technology and development building in this space. Our local community, staff, suppliers and customers makes owning a supermarket incredibly rewarding. Looking ahead the team would like to expand its store to include a larger offering for its customers. In the meantime, however, they are focused on
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increasing food to go options and offering premade meal solutions. “This area is always evolving which is why we have upgraded with new foodto-go cabinets, both hot and chilled options. This has meant we are now able to extend our range. We are developing our selection of sustainable and environmentally friendly options in our fresh food departments such as butchery, produce and bakery.” Having just celebrated 15 years as owner/operators of Four-Square Franz Josef, Cushla and Chris have continued to receive positive feedback and support for the store and team members. The team prides themselves in their excellent customer service. “Our customers deserve the best and we want to make their shopping experience memorable, which is why we have such high standards when it comes to customer experience. We ensure that all staff look after our suppliers, delivery drivers, tradies and service personnel because they all contribute to the success of our operations.” When it comes to the store, a highlight is its fresh produce offering. The range and quality of products are marketed at a competitive price. Offering customers a wide range of options is a key priority and if the locals want a particular product in-store, the team will do their best to source it if they don’t already stock it. There are many opportunities in the grocery industry, some from over the last year and some more recent, but the team are always looking at ways to improve including developing eco-friendly waste-reducing solutions, ready-to-go meals, private label development and self-service kiosks which gives customers more convenience. “Our customers are becoming more aware and environmentally conscious and we are always looking at how we can better manage plastic waste. We are conscious of the impact our waste has on the environment, which is why we not only have successful recycling plan in place, but also work to
reduce power usage where it is not necessary.” Looking back over her career, a highlight for Cushla has been that in their first three years they received a signfiicant growth in turnover, an achievement during a global recession nonetheless. “The grocery industry has been my life since leaving school, and I love it. For us, working in a partnership, alongside a great team is a great achievement, and makes all the challenges or hiccups along the way worth it.” “Due to the unique location of our store, we are largely seasonal. Peak season for tourists is from October to April each year, and the shoulder season is in between. Being a seasonal store definitely has its challenges, we employ 36 staff in our peak season and drop to 22 in the shoulder season. We are also the only supermarket between Hokitika and Haast which means we serve customers along most of the West Coast.” Future plans for the store include expanding its food-to-go cabinet and offering as well as installing new hardware/magazine shelves. The team are looking forward to the three new self-checkouts and upgrade of fresh foods preparation areas, cabinetry benches, implementing a new category range supplied by Foodstuffs, and rebuilding and developing the physical store. “Our community is very special and connected, everyone helps each other out. The Four Square is the local shop, which is why we play such a large part in our community. We support every local community and initiative there is, including sports teams, emergency service, schools, childcare, and fundraisers. Every week in Winter, we donate our famous ‘Four Square Meal Deal’ to the local weekly quiz night.” The store might be small in size, but it is mighty in spirit. Supporting the locals and the locals supporting them. n
Footprint 443 m2
4,500 SKUs
Selling Area 350 m
Opening Date: 1986
Checkouts: 4 regular
Owners: Chris Roy & Cushla Jones
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SURVIVAL AND SUCCESS IN OUR BRAVE NEW WORLD
“The twin impacts of Covid-19 and the economic fallout from measures taken to contain it have created widespread uncertainty. Even so, amid the disruption clear trends and opportunities are emerging. In FMCG, we’ve had the advantage of trading through this early part of the crisis. We believe it’s important to use that opportunity wisely, learn from it and share it. So here are four, hopefully useful, observations.
HYGIENE
Jenny McMillan
Something that leapt to the fore early on was hygiene, with sanitiser sold out and people sharing favourite hand-washing techniques. Despite the success of NZ’s single-minded focus on eliminating Covid, that concern will linger. The ‘Wash your hands’ mantra will return, replacing ‘Stay at home’. Many have acquired a deep concern–even fear–of bugs and
Business Development Director, Brother Design
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disease, and it will be prominent in their thinking for some time. This generates specific issues and opportunities, plus wider consequences. It could well be that consumers will respond well to formal proof of hygiene or, in some sectors, a proof of current health status. Reassurance about process will be welcomed, while science and sanitation may outweigh the desire to be ‘natural’. People are also likely to be more accepting of wrapped goods and plastic coverings than before, for some time at least. Incorporating materials with sanitising properties is another thing to look at for packaging.
PROVENANCE There has been a crisis in trust throughout the wider crisis, and that could manifest itself in a number of ways. We predict a growing concern with provenance: for traceability, especially country of origin, and acutely so in food and personal products. New Zealand-made (and Australian) will have more equity than ever, and building trust in a product’s cultivation, manufacture and handling will require real focus. This has implications for NPD and packaging, right down to things such as space and placement of pack copy.
IMMUNITY AND HEALTH With contagion front of mind for months, concern with health, immunity and nutrition is inevitably heightened. This presents opportunities for products that can tell a story in this area, and again this has implications for how brands tell that story, including on-pack. It’s also a factor to consider in NPD plans.
THE NEW ‘SHELF’ The massive growth in online food shopping, including meal kits, will have entrenched new habits. Even those consumers who have continued shopping in store have slashed their visits to supermarkets. So, the world of ‘shelf standout’ has irrevocably changed. Getting noticed and purchased in this new environment will require new thinking and new design approaches. We’re already adjusting ours, and applying the results for our clients. If you’d like to know more, or simply talk about the implications for your brand, don’t hesitate to get in touch.” n
DRIVING TOWARDS A CARBON-NEUTRAL FUTURE
Foodstuffs is investing in a more sustainable New Zealand. Reducing carbon emissions is one of many sustainability initiatives we are implementing as a business, and customer feedback to these initiatives has been overwhelmingly positive. Mike Sammons Sustainability Manager, Foodstuffs NZ
We joined the Climate Leaders Coalition in January 2020, which links our sustainability ambitions to the Coalition’s mission to tackle climate change and transition our business, and New Zealand, to a low emissions economy. We are proud to have halved the operational carbon footprint of new stores over the last decade thanks to energy efficiency improvements and transitions to natural refrigeration systems. In our warehouses we have moved from gas-powered to batterypowered forklifts and invested in LED, motion activated lighting to further reduce emissions and energy use.
Our transport fleet is continually improving fuel efficiency through driving training and utilisation of GPS route planning. At a store level, we are further reducing carbon through our fleet of 28 electric vans used by stores to deliver online shopping orders. We’re also helping New Zealanders who drive electric vehicles gain more and consistent access to EV charging stations across the country. Since 2017, we have been working with the Government and ChargeNetNZ to install 80 EV fast-chargers at New World, Four Square and PAK’nSAVE stores across the country. In 2019 alone we installed 16 EV
fast-charging stations, and we have plans to install another 15 in 2020. We’ll also introduce EV trucks into our supply chain to sustainably transport goods around the country. Reducing carbon emissions is only a small part of our journey to protect our environment and care for a more sustainable New Zealand. n
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internationalaisle COLES PARTNERS WITH BRAVERY TRUST
Coles has launched a fundraising campaign in the lead up to Anzac Day to enable Bravery Trust to support Aussie service men and women who have an injury or illness as a result of their service. Coles will donate 50 cents from every pack of Coles Bakery branded cookies or biscuits sold at Coles to the Bravery Trust. Customers are also welcome to make their own donations in-store at the checkout. Bravery Trust provides financial support to more than 800 veterans and around 3,000 family members of veterans each year to help them with medical fees, food vouchers, energy bills and education costs.
Coles Group CEO Steven Cain said Coles was delighted to partner with Bravery Trust to support current and former members of the Australian Defence Force facing hardship. “We know it’s going to be a unique Anzac Day for many Australians this year and we wanted to do our part in remembering and supporting service men and women who are facing hardship as a result of injuries or illness from their service,” said Cain. “As an Australian company founded not long before the First World War, we sincerely appreciate the outstanding service of current and former members of the Australian Defence Force.” n
WOOLWORTHS GROUP REDUCES PAYMENT TERMS
In recognition of the economic uncertainty many of its small business supplier partners are facing, Woolworths Group will temporarily change its payment policy to pay small suppliers faster for their goods and services. Currently, small trade suppliers in Woolworths’ Supermarkets business are paid within 14 days, while across the rest of the Group, payment terms for small suppliers do not exceed 30 days from receipt of a correct invoice or receipt of goods. From today, the payment terms for eligible small suppliers will be aligned across the entire Group (including Goods Not For Resale, BIG W, Endeavour Group and New Zealand) and will not exceed 14 days. “Our small business suppliers are an integral part of our supply chain and play a key role in helping us provide the products our customers need,” said Woolworths Group Chief Financial Officer Stephen Harrison. “We recognise that right now many of our small supplier partners are facing additional challenges in the current climate and we want to do our bit to further help them out by shortening payment terms across the Group. “By paying our small suppliers faster, we hope to ease some of the financial pressure many of them are currently experiencing amid the uncertainty caused by the coronavirus pandemic.” This change will have a positive impact on more than 1,100 small suppliers, providing goods and services to Woolworths Group businesses. n
L’OREAL MAKES SANITISER The world’s largest beauty producer, L’Oreal, has turned to producing hundreds of thousands of hand sanitisers per day in a bid to support supermarket employees and improve their safety around the world. With limited numbers of hand sanitiser available during the pandemic, L’Oreal’s plants have reorganised its production lines to adapt them to new packaging and technical formats. “It was a huge challenge for our teams across the world to adapt themselves in order to deliver on time,” said a L’Oreal spokesperson. “Without their agility and commitment, this could not have been possible.” A total of 21 L’Oreal plants are mobilised worldwide and have increased its global production to more than 2.4 million litres. n
MCDONALD’S DOES ESSENTIALS
UBER EATS GROCERY Carrefour and Uber Eats have joined forces to deliver everyday products to French households in full compliance with hygiene measures and traffic restrictions. Following the current confinement
In a bid to capitalise on the ‘essentials’ market, fast food giant McDonald’s Australia is now offering grocery items for customers via its drive-thru during the coronavirus pandemic. “This is a challenging time, but as a community, we can work together to get through it. McDonald’s contribution as a leading employer of youth, and a huge supporter of local farmers through our purchase of over 93% of what we
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sell, also comes with a responsibility to play a positive part in response to this challenge,” said CEO McDonald’s Australia, Andrew Gregory. Currently, only milk, bread rolls and English muffins are available across the country. Transactions are contactless, with payment via tap-and-go technology. Although its dine-in offering is closed, the business remains open for drivethru, takeaway and home delivery. n 100%
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period and the temporary closure of restaurants and shopping centres, Carrefour and Uber Eats are joining forces to meet France’s grocery needs. Starting April 6, users will be able to choose a Carrefour convenience store on the Uber Eats app or website, or dial by phone to order the products of their choice, including everyday grocery shopping as well as hygiene and cleaning products, as well as get deliveries at home within 30 minutes on average by a delivery person using the Uber Eats application and complying with all health and safety guidelines shared by the Government. This service will start with around fifteen Carrefour stores in Paris and the Paris region and will then be rolled out nationwide. Uber Eats will remove the delivery fees on all Carrefour orders during April. n
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and catch up when you want at www.supermarketnews.co.nz April 2020
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WRAP IT UP
ABSOLUTELY STUFFED
Whether consumers are trying to avoid carbs or just love cheese, new Cheese Wraps from Crystal Farms provide a tasty and novel way to wrap up favourite ingredients. The brand has a reputation for bringing the unexpected to the table. Its range of products can make dishes pop and ones which consumers can always count on. Cheese is an excellent source of protein which many people living in poverty are deficient in. The business donates an average of 30,000 cases of cheese annually to food shelves and charities across the country. From starting with the finest ingredients to carefully inspecting the finished product, the team ensure its products are consistently satisfying.
Stuffed Puffs’ new Chocolate-onChocolate is just the decadent treat consumers can indulge in to satisfy every chocolate craving. Following on from its successful marshmallow filled with real milk chocolate comes a new flavour – decadent cocoa marshmallow filled with milk chocolate. Alongside the launch of its latest variant, the brand debuted new and refreshed packaging. More variants are in the pipeline according to the brand after it developed its own technology and manufacturing processes to get the chocolate inside the marshmallow.
ORGANIC TWIST Family and female-owned rice brand 4Sisters, is bringing traditional favourites to consumers’ dining tables but with an organic twist. The brand has practiced sustainable farming since 1964 and as stewards of the land, the team focus on preservation, moderation and conservation of natural resources. Its range of organic long grain white and brown rice is sustainably grown, using no chemicals or fertilisers, ensuring maximum quality and taste.
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HAPPY GUT
SALMON SKIN SNACK
Uplift Food is the world’s first functional food brand to focus solely on the mood supportive benefits of pre-biotic gut health foods. The team take complex science and translate it into practical solutions to help consumers feel uplifted. The brand has recently launched three new cookie variants as part of its Gut Happy Cookies line. The range includes Salted Peanut Butter with chocolate and Coconut, Sunflower Butter with Vanilla and Chia, and Salted Almond Butter with vanilla and Hemp Seeds. All made using 100 percent plant-based, fibredense, resistant starches and four unique prebiotic-rich ingredients. It’s not just another ‘better-for-you’ cookie with a whole lot of claims. Setting a new standard of ‘goodfor-you’, Uplift Food Gut Happy Cookies are a functional food that are scientifically supported to give consumers gut, digestive and immune health benefits.
Consumers shouldn’t have to choose between a healthy snack and a delicious one. The team at Goodfish believe you can have your (fish)cake and eat it too. Its salmon snacks not only taste great, they’re also super healthy and good for the planet. With clean protein, good omega fats, and marine collagen in every bag, eating Goodfish delivers all the taste consumers love, without that heavy feeling from carbs. Its salmon snacks are made with wild-caught Alaskan salmon in Bristol Bay, one of the most sustainable fisheries in the world. Goodfish is made in as few steps as possible using sustainable fishing methods, so that consumers get the best-tasting, most environmentally friendly salmon snack around.
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A LOVE NOTE Earth Mama Organics makes clean, safe and effective herbal solutions for the entire journey of motherhood, including pregnancy, breastfeeding and baby care. Trusted by doctors, midwives, neonatal intensive care units, lactation consultants and mums worldwide, Earth Mama combines generations of women’s wisdom, traditional herbal remedies, and evidence-based research to formulate certified organic herbal tea, soaps, balms, lotions, soothing sprays and nipple cream. It’s latest product launch is the Throat Smoothie Tea. Whether consumers’ throats are raw, or just have an annoying tickle, Throat Smoothie Tea helps take the edge off, with a blend of herbs traditionally used to ease a sore throat. It’s smoothly soothing with a delicate, lemonyfloral flavour. A love note for your throat.
SUPPLY CHAINS DISAPPEARING INTO THE COVID VORTEX We are all focused on doing our level best not to catch COVID-19.
Mike Chapman
Chief Executive, Horticulture New Zealand (HortNZ)
Our omission is that getting sick is not the only COVID impact. There is an enormous COVID Vortex that is sucking in most of what we know and do. Some people are talking about resilience planning, and what we do as we come out of the COVID Winter. The massive challenge we have is to climb out of the COVID Vortex in our household bubbles, work, as a country and as a world. The critical difference between COVID and most other disasters is everyone in the world is affected. All most of us can do is influence our immediate family and work circles. So, what’s your plan for climbing out of the COVID Vortex? Before you can make a plan, you need to understand the situation that you are in, but this cannot be a superficial understanding. One of the key areas where understanding is currently lacking, at least by many decision makers, is how supply chains across the world and within countries work. Global and in-country supply chains are not simplistic and are interrelated. Across the world, the restaurant and fast food market has collapsed. There are three immediate consequences. The first and, from a COVID perspective the most concerning, is that fresh and healthy food is not getting to everyone.
The second consequence is that the growers of that produce now have nowhere to sell their produce and so, across the world, they are stopping planting. This decision will reduce the supply of fresh and healthy food worldwide. But paradoxically, the third consequence is there will be a massive oversupply of the food that used to be supplied to the restaurant and fast food market. Two problems arise here. Existing supply chains are not able to distribute this extra food, so it will not get to those consumers that need it, and the glut will further discourage growers from planting vegetables in particular. Those on lower incomes are the people across the world who are missing out the most on fresh, healthy food. In New Zealand, their independent neighbourhood fruit and vegetable retailer and local produce market are closed. Apart from foodbanks, Iwi and community food distribution, those on low incomes are not getting access to the fresh and healthy food they need. In turn, the growers that grow this produce are not planting, as they have nowhere to sell it and the nurseries that grow seedlings for planting are probably out of business too. In other words, closing farmers markets has a crippling ripple effect right through the community. A non-food example is the shutdown of timber processing. Take two important by-products that come from timber processing: sawdust to keep baby animals such as calves warm, and off cut timber to make pallet bases for fruit that is exported by pallets, such as kiwifruit. My last example is that palm oil production is down by 20% across the world, which for our dairy industry means that there will be less palm kernel available to feed cows during winter.
Existing supply chains are not able to distribute this extra food, so it will not get to those consumers that need it, and the glut will further discourage growers from planting vegetables in particular. Of course, a failure in one part of the supply chain can open up opportunities for others. However, the issue with other opportunities is that they are often more expensive but, in their favour, they are usually based in the country of need. Palm kernel can be replaced by more fodder crops being grown in New Zealand which has the added advantage of creating in-country resilience to off-shore influences. Innovation and imaginative supply solutions are now required more than ever. Whether it is developing each country’s resilience by sourcing from within, or expanding existing supply chains to get fresh and healthy food to those people who are missing out. Here’s an example of the latter, with 5+ A Day delivering 5,000 fruit and vegetable boxes to families in need [click here]. We must unite and avoid the COVID supply chain void, making sure we can continue to grow enough healthy and fresh food and get that food to everyone in our country. n April 2020
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New Zealand is currently at Alert Level 4. For more information visit covid19.govt.nz/government-actions/covid-19-alert-level/
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