SupermarketNews // May 2014 by Review Publishing Ltd

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“The global demand for dairy is growing and we’re now well positioned to meet this growth with our new state-of-the-art UHT milk processing site.” Donald Lumsden (pg 12)

COMMERCE COMMISSION IS A GONOWHERE DEAL – BUT SCARY THE likelihood of anything seriously affecting the industry coming out of the current Commerce Commission inquiry into Countdown matters is probably zero. The Commission will find that the normal tough grocery negotiations have prevailed and that there’s been nothing illegal about the business. But the concern of the moment is that the Commission will be using subpoena powers to force information from a number of leading suppliers who, as we understand, don’t want a bar of it. The Commission has already issued its “section 98” notices to a number of companies requiring them to

co-operate, even if they weren’t the original complainants. And there’s not much likely to be forthcoming from those companies whose relationship with Countdown is critical in this market. For any small company forced to become involved, they could probably kiss goodbye to a portion of their business because Countdown simply doesn’t have to buy from them. Most in the industry understand that issues raised by politician Shane Jones (who is now leaving Parliament after causing this stink) were more historical and were blown out of proportion. Unfortunately Jones virtually

PROPOSED HAMILTON COUNTDOWN

accused Progressive of a culture of corruption, racketeering and blackmail and this is simply nonsense. The Commission is casting its net quite widely in a significant sample of the industry and the outcome will be interesting. The fallout from the affair is that it may lead to a compulsory code of industry behavior along the lines of the UK one already in place. It will certainly depend on the outcome of the Commission’s inquiry but the broader industry opinion is that the whole affair boils down to tough negotiations that have been traditional in the grocery industry worldwide. n By publisher Peter Mitchell

GILMOURS HIT 90 YEARS IT’S been 90 years since James Gilmour set up shop little knowing his grocery business would grow to become a leading supplier to the upper North Island convenience and foodservice trades. “We’re proud to have reached this significant milestone and continue to be committed to serve the industry for many years to come,” said group manager James Cunnold. n

PROGRESSIVE has applied to Hamilton city council for consent for a new $23 million Countdown store in Hamilton East’s Peachgrove Road. The 4,000sqm supermarket would create up to 60 new jobs for the community and includes 192 car parks. The 1.8 hectare site was previously home to Mighty River Power and requires extensive traffic planning to

include a new pedestrian crossing. “Suitable sites for supermarkets are very hard to come by because of the appropriate zoning, site access and size that is needed, and we are pleased to have secured a site in a part of the city where we don’t currently have a presence,” says Adrian Walker, Countdown’s general manager for property.

GRIFFIN’S MARKS 150 YEARS

GRIFFIN’S, the brand behind many of New Zealand’s most iconic and loved biscuits, is celebrating 150 years of baking this month. From humble beginnings as a cocoa and flour miller in 1864, to baking close to one billion biscuits every year, Griffin’s is a New Zealand success story. The company manufactures the popular Gingernuts, Toffee Pops, Cookie Bear Hundreds and Thousands, Shrewsbury and MallowPuffs brands with Kiwi consumers eating 50 million packets of its biscuits each year. This staggering figure contributes to the country’s position as the second largest consumer of biscuits in the world per capita, behind only the UK. Griffin’s general manager of sales and marketing, Josette Prince, says the company has changed the face of biscuit making in New Zealand. “There have been many firsts like introducing automated ovens that baked biscuits around-the-clock, to replacing bulk tins with packets which revolutionised the way biscuits were sold in the late 1950s. Griffin’s can also lay claim to introducing the original and now iconic Gingernut, which Kiwis eat 203 of every minute,” she says. n

contents 14 Artisan 16 Lighting Check 22 Snack Food & Confectionery 26 Fine Food Preview 32 Liquor

12 15

20 31

editorialcomment THERE’S increasing concern amongst suppliers over the growing number of supermarket openings in what appears to be overkill. Many believe that saturation point has long been reached and that a halt should be called until there’s another population spurt. There’s little doubt that territory claiming has reached a max and that return on investment could well be become marginal in some areas. The effect on suppliers is simply broader and lower levels of stock and the requirement to provide even more below the line spend to support store promotions. While the two parties are unlikely to ever agree, let alone talk to each other, a moratorium on this aspect of the industry is probably out of the question. At the same time, there is added worry over the general state of the industry in terms of sales levels. There

sndiary 22 MAY FGC Half Yearly, Villa Maria, Auckland

18-20 JUNE 2014 Food Expo, Yangon, Myanmar

22-24 JUNE Fine Food Expo, Auckland

31 JULY-AUG 3 Auckland Food Show

21 AUGUST NZACS Industry Awards & Jowett Scholarship, Crowne, Plaza, Auckland

7-9 OCTOBER Juice & Beverage Annual Conference Napier

19-23 OCTOBER SIAL, Paris

5-7 NOVEMBER FGC Annual Conference, Queenstown

13 NOVEMBER Convenience Leaders, Summit, Crowne Plaza, Auckland

26-28 NOVEMBER North China World of Food (ANUGA division), Beijing

is hardly a supplier company that is ecstatic about its sales – small increases in some cases but many are struggling to meet budgets with not any real prospect of improvement over the next few months – and more stores is not going to alleviate the situation. As an interesting aside, the advertising figures for the 2013 year have just been released with Foodstuffs ($88,674,813 spent) and Progressive ($81,361,631 spent) being the two top advertisers in the country. I cynically just can’t imagine where much of that $170 million came from. PETER MITCHELL Publisher

THERE is a scene in American Gangster where the aging mobster wanders into the new superstore which has replaced the corner store announcing, “Where’s the pride of ownership? Where’s the personal service?” While supermarkets worldwide are morphing into a one stop shop for consumers – offering pharmacies, general merchandise, lotto, apparel – it is more important than ever that stores continue to maintain a connection to their local communities and deliver on the service of old. It means making sure your standard grocery offering is not being overshadowed by all the ‘nice to haves’. It means education for store workers and an improved standard of service from more than the checkout operator. It’s about consumers being able to approach someone on the shop floor about an

item and being confident they are going to be able to help. My local store has recently been revamped, with departments moved around, and when I approached a shop floor worker about the new location of the chilled drinks they were entirely unhelpful. While I don’t want to moan about a one off incident – it isn’t beyond reason to expect staff working in the store to know that an entire section has been moved. If someone such as myself who has access to industry knowledge is frustrated by the lack of ‘personal service’ then how are your consumers feeling? JASMINE WALTERS Editor

ANNIES BOUGHT FOODSTUFFS TO GET PAYWAVE is set to offer Visa BY WHAKATIPU FOODSTUFFS paywave contactless payment technology LOCAL Blenheim Maori enterprise Whakatipu Incorporated has bought the popular fruit leather business of Annies through its subsidiary Kono NZ LP. Whakatipu is well known for its seafood, wine and fruit businesses and the purchase is a good fit for the group. Former owners Annie and Graeme Giles had developed a strong business over 27 years with substantial exports before compliance issues forced it into receivership last year. But the couple say they support the sale and are working to ensure a smooth transition. n

GOODMAN FIELDER REJECTS OFFER

WHILE Goodman Fielder have rejected an initial takeover approach from Singapore 10% shareholder Wilmar International, it seems likely that discussions will continue and that the trans-Tasman food producer will eventually fall. Wilmar, a $A23 billion investor in the global food industry, has teamed with Hong Kong investment company First Pacific to make an offer of $A1.27 billion for Goodman Fielder but the company says it undervalues the business. n

to its 700 stores across the Pak’nSave, New World and Four Square banners, who collectively operate 3,500 terminals. Foodstuffs New Zealand managing director Steve Anderson says contactless payments will start to be rolled out later this year, as the new technology at check out lanes is installed. “We are always striving to provide the best possible shopping experience for our customers. Contactless payments are steadily growing in New Zealand and we have seen them significantly embraced by consumers in other parts of the world. We believe this new technology will provide shoppers with an easier, faster and more convenient experience at the checkout.” Visa paywave allows cardholders to make purchases under $80 without the need to sign or use their PIN, with an embedded antenna and microchip enabling fast and secure contactless communication with the checkout terminal. Caroline Ada,

Visa’s country manager New Zealand and South Pacific, says Visa paywave has had a positive impact on retailers internationally. “One of our international retailers saw that within six months contactless payments accounted for half of all their transactions, and they were 15% faster to process than cash. This meant time savings for both customers and staff, enabling staff to be deployed to other areas of customer service within the stores.” Visa paywave transactions are also processed three times faster than cash payments. n

CRITICISM OF ANTI-BAC SOAPS CONSUMER NZ believes antibacterial soaps available through supermarkets are little more than a marketing invention and at worst, could actually be doing harm. Consumer said the ads trumpet the 99% bacteria killing power that played on a fear of germs and boosted million dollar sales. But it said evidence that these products provided

any extra benefit was lacking and could even do harm by reducing the effectiveness of drugs used to fight infections. The antibacterial agents are approved for use here but there is growing concern, according to Consumer, that their use is contributing to the development of antibiotic resistance. n

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

PUBLISHER Peter Mitchell, peter@reviewmags.com

MARKETING Tania Walters, tania@reviewmags.com

EDITOR Jasmine Walters, jasmine@reviewmags.com

CIRCULATION & DISTRIBUTION Kieran Mitchell, kieran@reviewmags.com

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

May 2014

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BP MOVES HO TO AUCKLAND

THE giant energy and petroleum company BP is moving its head office from Wellington to Auckland next month and expects its 150 staff members to be in by the end of June. The company move to Newmarket ends 67 years in Wellington. In the capital, the company had been forced into temporary premises following earthquake damage to BP House. Also of interest relating to BP, former retail head Peter Struck now in Australia, has recently been appointed CEO of Metcash’s convenience division. Struck had won the Australia and New Zealand convenience retailer of the year three times and was responsible for reshaping BP’s convenience turnaround in New Zealand.

GOOD RESULT FOR COLES, WOOLWORTHS

COLES in Australia has lifted its third quarter sales to the end of March by 3.5% with food and liquor sales for the quarter reaching $A6.73 billion. In addition, its Coles Express convenience division lifted sales by 2.4% to $A1.9 billion. Woolworths third quarter sales for the same period increased by 5.3% for food and liquor were $A10.38 billion, petrol sales added a further $A1.82 billion and its New Zealand supermarket sales for the quarter were $A1.33 billion. In addition there were hotel, timber and hardware company sales bringing total sales to $A15.2 billion. In the three months, the New Zealand supermarket sales rose by only 0.1% that the company said reflected subdued grocery market conditions, a highly competitive marketplace and price deflation across a number of categories.

$22M INVESTMENT IN FOOD TECH

MASSEY University has unveiled a $22m upgrade of its Manawatu campus base for food technology. This is a significant step in the planned $250m investment in the Food HQ research collaboration designed to boost NZ food exports to $60 billion by 2025.

KUMARA CROPS UNDER PRESSURE

AFTER three consecutive summers of drought, the major kumara growers in Northland are facing another harvest that’s less than great. The industry says there will definitely be no over-supply this season. The early season crop gave a reasonable supply but the second half main crop is looking sparse. As a result, the processed kumara supply has been limited and a number of suppliers of frozen chips have been seriously affected.

BROOKE MOVES OVERSEAS

FORMER All Black Robin Brooke and his family have left New Zealand for an extended OE and with a relocation in Europe for at least a year, there is no return date scheduled. Auckland gossip columns reckon that travelling funds might not be a problem after Brooke sold his Warkworth New World last year for a reputed around $10 million (which Brooke has denied).

NW BROWNS BAY UNDERWAY WORK has commenced on New World Browns Bay with the new site at 2 Inverness Road due for completion early next year. “New World has been a part of the Browns Bay community for 43 years and it’s fantastic locals will have a new store with plenty of natural light to ensure a more enjoyable shop. The first step in our construction programme is to demolish the current building on the site and we will then be able to build a new supermarket with a modern look and feel,” says Angela Bull, Foodstuffs North Island general manager property development. New World Browns Bay owner Gary

NEW HYPERMEDIA CEO

SPECIALIST in-store advertising agency Hypermedia has appointed Belinda Freeman as its CEO. Freeman brings to the company more than 20 years industry experience in FMCG, previously working for both manufacturers and retailers including Unilever, Nestle, Coca-Cola, Tesco, Boots and WalMart. The appointment will see Freeman lead the company’s shopper marketing consultancy including path-to-purchase analyses and insights, execute creative strategy and manage Hypermedia’s retail contracts. Freeman says Hypermedia enables clients to effectively get in front of consumers at the critical decision point. “Hypermedia gives companies the unique ability to amplify their brand at point of purchase, thanks to a powerful partnership with Countdown and other retailers. I look forward to strengthening the agency by working with our clients and the team to expand the reach of, and to future-proof Hypermedia’s results proven offering,” says Freeman. n

FOOD ADDICTION NONSENSE

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

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May 2014

TAKE a glance at the magazine stands in the supermarket and you could get the impression that there’s a new theory doing the rounds on why we have an obesity problem – we’re apparently addicted to food. But not only are we apparently addicted, some people claim a lot of food is engineered with the aim of making us drooling addicts who can’t control our urge to eat them. This sort of unproven claim is common in popular magazines, which will try anything to catch our attention with sensationalist headlines. But unfortunately the idea of food addiction is also being promoted in some academic circles. FGC attended a symposium on the subject last year, hoping to get a better understanding of the scientific agreement on so-called food addiction. What we found was that some people were doing their best to talk up this idea, despite the fact that it’s based on a scarcity of evidence – and most of that comes from studies using rats! “Food addiction” is being used to describe a wide range of nonclinical situations. Just because food is enjoyable and desirable doesn’t mean it’s addictive for most people. Imagine a world where the food is beige gloop, so unappetising that people don’t want to eat? Children enjoy toys, but does that mean they’re addicted? Of course not. The term has now entered every-day language to mean “desire”, “interest”, and “enjoyment”. That means we

Christini is excited about the new store, which will include a fresh bakery, butchery, deli and seafood counter and will also be built using sustainability features. “I’ve loved getting to know the Browns Bay community through the Bute Road store and I’m excited to be a part of the new store. The supermarket will be a fantastic addition to the area, with a bigger store and greater range of fresh and everyday products,” says Christini. The area’s existing New World on Bute Road will continue to trade as normal until the new store is ready to open. n

are frequently admitting to being “addicted” to things such as rugby, reality TV shows, Facebook, chocolate, etc. The word “addicted” is now used when we indulge in something a little more often than we should (or think we should). The term “addiction” should be used only to describe addictions that involve the continued repetition of behaviour despite adverse consequences – such as gambling, smoking, drugs, compulsive overeating, and alcohol. And it’s clear that these behaviours do not apply to the population as a whole. Food is different in one major respect to those behaviours: we all have the compulsion to eat, usually at least three times a day. Since we have to stop what we’re doing at some time during the day to eat to survive, wouldn’t most of us fit the definition of addiction? Is such a conclusion helpful when we all are dependent on food for survival? What really irks me in the discussion on food addiction is that only certain foods are being pointed to as being supposedly “addictive”. You can predict the list, but it includes the likes of ice cream, chocolate, chips, hamburgers and fizzy drinks. This list is based on what compulsive over-eaters most frequently say they over-eat, although these foods all have an appropriate place when consumed in moderation as part of a healthy balanced diet. Those who push the fat-addiction theory seldom admit that their “evidence” is based mostly on rat

studies. The problem is that humans and rats differ in many ways, meaning such studies can be very misleading. For example, there’s the ridiculous claim that sugar is apparently as addictive as heroin – as if someone eating too many donuts can be compared with an intravenous drug user. Yes, consuming sugar does cause the brains of rats to release opioids as a sign of pleasure. But glucose is the only fuel that can be used by brain cells so it’s probably not surprising the poor lab rats are “happy” to receive it and react accordingly. This does not mean sugar is “as addictive as heroin”, which also causes the brains of rats to release opioids. Rather than focusing on possible causes for obesity, our efforts would be better placed promoting useful solutions based on what we know to be true. There seems to be little effort or funding going into this area. Dumping on fizzy drinks is not likely to make any difference to people who struggle with their weight. Since we all make something like 200 food-related decisions a day, focusing on strategies to make some of these decisions relate to on-going health and wellbeing is probably a good start.

Katherine Rich CEO, New Zealand Food & Grocery Council

supermarketnews.co.nz

I 5

FERRYMEAD OPEN FOR BUSINESS

a decade when the earthquake happened. We’ve been part of this community for a long time, and can’t wait to welcome back our locals. We know our customers have been eagerly watching with interest, so we really want to thank them for their patience while we’ve been rebuilding the store,” says Murray. The new state-of-the-art-store includes an expanded layout complete with new clothing and kitchenware merchandise. A range of environmental initiatives including a CO2 refrigeration plant system will provide significant energy efficiency benefits. Night blinds on refrigerated cabinets, energy efficient lighting and sliding covers on freezers will also minimise the store’s carbon footprint. Countdown’s managing director,

Dave Chambers, says the opening of Countdown Ferrymead is the final piece of the puzzle in completing a significant number of repairs needed to its Christchurch supermarkets and Hornby Distribution Centre over the past three years. “We are 100% committed to Christchurch as a local employer and investor, and I stand by the commitment we made immediately after the earthquake to providing ongoing employment to our team of 2500 in Christchurch. I’m extremely proud of how resilient our team have been and I want to thank them for all their hard work and support,” says Chambers. In the last six years Progressive has invested more than $95 million in Christchurch on building, repairing and upgrading its stores with Countdown Ferrymead the last of three buildings to be rebuilt in Christchurch. SuperValue Edgeware reopened in 2012, and the SuperValue

SAMPLING BOOSTS SALES

LETTERBOX sampling company ReachMedia is increasing its focus on the FMCG sector with its costeffective targeted distribution service proving a successful marketing tool for the industry. Owned by NZ Post and Salmat, ReachMedia is New Zealand’s largest catalogue and sample distribution company with over 35 years experience. Already handling mailers for the likes of Foodstuffs and Progressive, three years ago the company expanded its services to include targeted distribution sampling. Utilising an internal market intelligence team, clients are provided with access to demographic profiles, shopping behaviours,

COUNTDOWN’S Ferrymead store was reopened last month, with the larger 4200 sqm supermarket featuring the South Island’s first in-store pharmacy. The store required demolishing after it sustained extensive damage in the 2011 earthquake, with the reopening creating150 jobs for the community, including 112 new faces. Store manager Aaron Murray says it’s an extremely special milestone for the business. “It’s fantastic to see Ferrymead standing again. We’re so excited to have a number of the original Ferrymead team returning, many of whom had worked here for more than

Katherine Ledger

LEWIS ROAD APPOINTS GM PREMIUM dairy manufacturer Lewis Road Creamery has appointed Michelle Preston to the newly created position of general manager. Preston has more than 13 years experience with leading food brands and was previously the general manager of gourmet ice cream company Kohu Road. Effective immediately, Preston will be responsible for all facets of the business with a particular focus on driving NPD. Company founder Peter

May 2014

Cullinane says Preston’s experience working with like-minded brands and her unique skill set will be a great asset to the business. “Kohu Road and innocent drinks are both market leaders in their respective fields because they produce innovative products that use the highest quality natural ingredients. So there’s certainly lots of similarities with what Lewis Road is committed to doing here in New Zealand with dairy products,” says Cullinane. n

Michelle Preston

4 1 Deputy Mayor Vicki Buck with store manager Aaron Murray 2 Former store manager Colin Taylor with current store manager Aaron Murray 3 Store manager Aaron Murray (left) with Salvation Army representative John Gardner and Countdown Managing Director Dave Chambers (right) 4 Michael Koh and Sarah Bannerman with Jeremy Armes, Business Manager.

and FreshChoice support office in Byron Street was reopened last year. Countdown will also be bringing the first supermarket to the North Canterbury town of Amberley when it opens a store there this month. n proximity to store and spending patterns all to ensure that their samples reach their exact target consumer. ReachMedia’s FMCG account director Katherine Ledger says the team is able to pinpoint relevant households using extensive data collected from the Census, Nielsen Media Research, NZ Post, Marketview, and Datamine. “While it is unaddressed mail, targeted sampling distributions reduce the risk and we have access to every letterbox registered with NZ Post,” says Ledger. Ledger says targeted sampling is ideal for grocery suppliers as it is costeffective, scalable and can be easily incorporated into umbrella advertising campaigns. “Increased pressure on marketing budgets means it’s even more important than ever to ensure that every dollar invested delivers maximum return. And in today’s heavily price competitive market innovation and sampling is the key to breaking the cycle of price promotions,” she says. Recent client sampling campaigns both national and targeted have demonstrated significant improvements in product baseline sales. To find out how your business can reach your customers with Reachmedia’s cost effective sampling options please contact Katherine Ledger on (09)969 0206. n

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I 7

THE site lease of the Hauraki Corner New World in Auckland’s Takapuna came up for renewal recently and Countdown won the new contract. The New World had been on the site for 43 years, one of the first New World’s in the country. The store closed this month and Progressive is working to open a new store on the site.

PHILIP MORRIS QUITS REGIONAL MAKING

MAJOR tobacco supplier Philp Morris is closing its regional production facility in Moorabbin, Australia, and moving its manufacture for the local market to Korea. About 180 employees will lose their jobs but a substantial sales and head office operation for the region remains. The company says despite the introduction of plain packaging and a major illicit trade, the PM volumes were remaining stable.

FORECAST DROP IN CCA EARNINGS

TESCO SALES SLUMP

BRITAIN’S largest grocery retailer Tesco has announced a 6% decline in sales following strong competition from Lidl and Aldi. The fall in profit comes on the back of the chain’s market share dropping to 28.6%, Tesco’s lowest in 10 years. The news is being met with calls for the resignation of CEO Phil Clarke, who has invested heavily in the past two years in store upgrades, new product ranges and increased staff. “Our results reflect the challenges we face in a trading environment which is changing more rapidly than ever before,” says Clarke.

FOOD PRICES DOWN

THE cost of food fell 0.3% in March but remained up 1.2% on the same time last year, according to Statistics New Zealand data. Grocery food prices were down 1.6%, influenced by falls across most subgroups including confectionery, snacks and nuts (down 3.5%) and breads and cereals (down 1.8%). Driven by a 2.9% rise in beef prices, meat, poultry and fish were up 0.9% while fruit and vegetables also increased 0.5%.

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COCA-COLA Amatil has warned that its expected earnings for the first half of this year could drop by 15% - around $A56million - and has blamed soft consumer demand and pressure from supermarkets. New Australasian chief executive Alison Watkins has launched

a strategic review of the company’s operations including its assets, cost base, marketing strategies, spending priorities, product mix and productivity. Much of the problem was in the Australian and Indonesian markets with New Zealand holding up strongly and continuing to improve.

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May 2014

TICK ADDS NEW LOGO

THE Heart Foundation’s Tick programme is evolving to make it even easier and quicker for consumers to make healthier choices. A new logo featuring two ticks will now be seen on core healthy foods, enabling consumers to recognise healthy food choices for themselves and their families. While foods with the Tick logo remain a healthier choice within a specific food category, Two Ticks will look at foods as a whole, rather than specific nutrients, better defining the role of the Tick programme in signposting ‘healthy’ and ‘healthier in category’ choices for consumers. “Consumers have been telling us they want an even easier way to identify which products are the healthy and the healthier options within a product category. Tick programme’s evolution makes it even easier for consumers to make healthier choices in today’s busy environment,” says The Heart Foundation’s Tick manager Deb Sue. At industry level, the current Tick will continue to encourage food companies to reformulate its products to become a healthier choice within a specific food category. The new tiered programme will also encourage manufacturers to reformulate products to meet the Two Ticks requirements – helping to improve the nation’s food supply and educate consumers on healthy and healthier choices. Research conducted in May 2013 by Phoenix Research shows that Tick is still a credible endorsement, with 78% of grocery shoppers choosing the Tick over a similar product if price parity. To find out more on how to register your products to the Tick programme contact Deb Sue, debs@heartfoundation.org.nz n

FRENZ TURNS 25 FREE range egg brand FRENZ is celebrating its 25th birthday this month. As the first company in New Zealand to market free range eggs, the FRENZ label has been instrumental in offering consumers an ethical choice in the category. Kiwi owned and run, The Free Range Egg and Poultry Company remains the country’s largest supplier of free range eggs. Its eggs are sourced from its 15 free range franchised farms with certified organic eggs also produced. “These are independently certified by Bio Gro and inspected by the Ministry for Primary Industries to

ensure we meet the highest export standards, over and above our world first Free Range Standards, set 25 years ago,” says director Rob Darby. Sold in 100% biodegradable packaging, FRENZ eggs are nutritious and full of flavour. Animal welfare is at the heart of the company, with its hens free to forage in open fields. While the majority of FRENZ eggs are sold locally, the brand also has a strong export market.

VANILLA GROWER GRANTS QUEEN’S Tongan vanilla grower association has received two funding grants including €10,000 from the European Union and a further $40,000 from the Fairtrade Australia and New Zealand Producer Development Fund. The Queen Vava’u Vanilla Association (QVGA) announced the new funding awards at its recent inaugural Fairtrade preparation audit. The European Union grant will go towards retraining all growers in best practice vanilla curing and plantation management while the Fairtrade grant is for the establishment of an agricultural tools library and the first centralised vanilla curing facility on the island. The first of the joint Tongan Queen vanilla is expected to reach New Zealand later this year. n

NEW GELATO MANAGER

Rachel Nicholls

TASKED with growing Carrello del Gelato’s share of the greater Auckland market, Rachel Nicholls has taken up the role of business development manager for the area. Nicholls was previously the national sales manager for Tommy & James, where she increased Nice Blocks stockists from 10 to over 200. Gourmet gelato producer Carrello del Gelato is currently stocked in New World and Nosh stores and is looking to boost its distribution. “Auckland is the country’s largest gelato market and we’ve been looking to increase our share of that market for some time. Rachel’s appointment is key to achieving that goal. A recent investment in plant has meant we are able to lift production which has been capped at 1,200 litres per week,” says company founder Nathan Meyer. The Carrello del Gelato range features over 100 flavours, most of which are gluten-free with the entire sorbetto offering being both gluten and dairy-free. n

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I 9

within the food and beverage sector. This year’s show will be held in Paris on the 19-23rd October and will be home to more than 6,000 exhibitors, 1,000 of which will be participating at SIAL Innovation. The importance of innovation within the competitive retail space has also grown with SIAL at the forefront new food products. “SIAL is indisputably an international event, totally geared towards export. Exhibitors are coming to create new export opportunities, with a view to increasing their turnover,” says SIAL group director Nicolas Trentesaux. n

EXHIBITION BIGGEST SIAL TURNS 50 EVER FORECAST ONE of the world’s biggest food and beverage trade exhibitions will celebrate its 50th anniversary when it takes place later this year. SIAL (Salon International de l’Alimentation) continues to grow every exhibition since it was first held in Paris in 1964 and remains focused on innovation

BECK’S PLAYABLE POSTERS

LION’S Beck’s brand has revealed the world’s first playable posters, which play music instantaneously when touched. Made with conductive ink, the playable posters are similar to an iPad, except on paper, picking up electrical signals from fingers when activated parts of the poster are pressed. The conductive ink is linked to a speaker attached to the rear, which reverberates the poster and turns it into an 80 watt speaker. Beck’s playable posters will be up in the nation’s cities throughout NZ Music Month.

OVER 150,000 trade visitors are expected at the SIAL trade show in Paris on October 19, say organisers, with 90% of exhibitor space already booked. The biennial event, celebrating 50 years this year, is a magnet for Kiwi meat exporters looking to network with new and existing customers. The show is expanding this year to include equipment, technology and services sectors, further consolidating SIAL in the food sector. n

SIAL: FOCUS ON TRENDS JUDGING for the SIAL World Tour Awards took place earlier this month in Paris. Thirty international food journalists and magazine publishers, including SupermarketNews’ Tania Walters, were on hand to select new retail products representative of current food trends. Previously known as SIAL d’Or, the awards have been a permanent fixture at the bi-annual exhibition since 1986 and in the past have

PALMERSTON NORTH INVESTMENT

PROVIDA Foods is set to invest $6 million in a new distribution centre on the outskirts of Palmerston North. Building on the 3,000sqm coolstore, freight centre and offices will begin this month, and is likely to be similar to Provida’s Hamilton business. Provida’s refrigerated freight service is used by both the grocery and foodservice sectors, with the company employing 144 staff across its Hamilton, Auckland and Mount Maunganui facilities. Palmerston North has a growing distribution industry and is ideally located to service the lower North Island.

EQUAL PAY COURT CASE

A TEST case for equal pay is being brought against supermarket chain Asda in the UK, which may see the retailer back paying millions of pounds along with higher future wages. The case involves 400 workers who are being represented by employment lawyers known for previously winning a one billion pound ruling in the Supreme Court for lower paid women employed by Birmingham city council. The case is to decide if workers in the retailer’s stores, who are predominately women, are paid less than the chain’s male dominated distribution centres. The outcome may see further court action brought against other UK grocery chains.

May 2014

When is a product different enough to be different? AN issue gaining a lot of prominence globally in the FMCG sector at present is “how different does a product need to be to be different?” If this seems a bit of a strange thing to be pondering, I’ll explain why it is not as silly as it sounds. In general, products are identified by manufacturers, brand owners and retailers in the supply chain by the GS1 Global Trade Item Number (GTIN, aka the barcode number). All good. Product is scanned in, scanned out, re-ordered and tracked using the GTIN. But in practice there are variations in the exact composition of products on a day-to-day or a batch-by-batch basis. Sometimes these are just slight modifications to the composition or ingredients to achieve consistency of flavour or chemistry. But sometimes the product can be dramatically different in ways that are very relevant to the end consumer – such as when a preservative is switched, or the source of supply for an ingredient is changed. Sometimes a component that is classed as a declared allergen is swapped for another. Most manufacturers are really good about updating any

mandatory consumer declaration on the label (nutritional information panel, ingredients panel). [I suppose it helps that aspects of the consumer declaration is mandated by law….!] But sometimes manufacturers do not change the GTIN. This could be because the manufacturer does not understand the GTIN allocation rules; it could be because they do not want to negotiate a change of GTIN with their retailer partners or it could be that they are wanting to avoid product change fees or double their slotting fees charged by retailers (very common in the US and Europe). In the past this has not been perceived as a problem. In some ways everybody involved just accepted that changes in formulation that did not hit the ‘requirement’ to change the GTIN were not material. No longer I’m afraid. We are seeing a tidal wave of consumer-led scanning of products via mobile phones. Consumers also want to know more about their products, including wanting visibility of things that manufacturers and brand owners may find inconvenient to share with their consumers (like the country of origin

recognised innovative retail products that have been a commercial success in national food markets. This year the awards were changed to focus on food consumption and retail trends, with products that were at the forefront of these trends nominated. As SIAL’s New Zealand trade partner, SupermarketNews nominated products that reflected the nation’s food consumption trends of premiumisation, healthy eating, low alcohol alternatives and artisanal products. Anchor’s Lightproof milk bottle, Easiyo’s yoghurt sachets, Invivo’s Scarlett’s Spritzers and Tommy & James’ Nice Blocks and Nice Cream were presented before the international judging panel. The winners will be announced in October and will be showcased during the five day exhibition, providing exposure to international trade buyers. n

of ingredients). The key thing is that consumers are scanning the GTIN and pulling information off the web on products based on the GTIN. So now you see the problem – if consumers are relying on the GTIN to get information on your product (rather than reading the back of the pack) and the information presented on things like allergens is wrong. Getting digital information to match physical information and getting good, reliable information to consumers is a huge focus at present. The GTIN is still the basis for meeting these needs, but a concept called the ‘Next Generation Product Identifier’ is in the wings. What manufacturers and retailers are trying to provide for are product variants below the GTIN. A key requirement is that these product variants should be identifiable right through the supply chain and to the consumer. Tricky, but essential as we move into a world where consumers rely on digital information to make purchasing decisions. Want to know more? Flick me an email. n

Peter Stevens CEO, GS1 New Zeland

SIAL, The Global Food Marketplace

19 – 23 OCTOBER 2014

Paris Nord Villepinte France - www.sialparis.com

Contact Promosalons : Promosalons Australia Tel : 02 92613322 Email : promosalons@optusnet.com.au SIAL, a subsidiary of Comexposium Group

Celebrate

Images by

www.stockfood.com. *

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I 11

P&G SELLS PETFOOD BRANDS MARS has acquired Proctor & Gamble’s petfood brands Iams, Eukanuba and Natura in a US$2.9 billion cash deal. Mars president Todd Lachman says the petfood category, where its portfolio includes the Pedigree, Whiskas, Banfield and Royal Canin brands, is the company’s largest and fastest growing division. The sale is applicable in most markets, with the exception of the European Union where P&G is looking to develop alternative plans to sell its pet care business.

KIWIS SPEND BIG ON FOOD

ROUGHLY 14% of the Kiwi household income is spent on food – the fifth highest in the world behind Switzerland, Norway, Japan and Australia. The first three nations have the highest level of farm subsidies and support for food production while households in the U.S spend only half the amount we do. New Zealand’s high food spend per person has been attributed to the strong NZ dollar and lack of retail competition.

SIMPLOT DOUBLES PROFITS

DESPITE only a 2.3% increase in revenue, Simplot Australia has doubled its net profits over the 12 months to August 2013. A significant reduction in its labour costs saved the manufacturer $14 million, achieved primarily through staffing cuts. The savings come on the back of an announcement last year of 228 full time and casual jobs being cut from its factories in Bathurst and Devonport over the next three years. Simplot Australia has been vocal about the challenges facing manufacturers in Australia, pushing for an overhaul of employment laws.

May 2014

BROTHER WINS INTERNATIONAL AWARD

BROTHER Design has taken out the prestigious Best in Show award and four gold medals at the inaugural Vertex Awards for Private Brands. All four winning Kiwi designs were for Foodstuffs’ Pams label. Brother’s work outclassed those created for global retail giants including Tesco, Lidl, Safeway and Woolworths, with the Pams flour range awarded Best in Show award as well as gold in the Packaged Goods category. Brother Design refreshed the range last year,

with the flour packaging described by judges as capturing a sense of baking nostalgia with its familiar icons. Three more Pams ranges won gold; milk, cream and butter in the fresh category; premium ice cream in frozen and Pams’ baby range took out the top spot in the body care category. Judged by a panel of experts from around the world, the Vertex Awards are the only international awards devoted exclusively to packaging design for private brand product

ranges. This year’s inaugural awards received entries from across the globe. “To have the Pams brand receive such international recognition makes the team immensely proud and is confirmation of the caliber of the work we do. Brother Design listened to our vision, challenged us and encouraged us to push the boundaries and we think they really managed to capture the essence of our brand,” says Foodstuffs’ national private label manager Jocelyn McCallum. Brother’s business development director Jenny McMillan says it is the quality of thinking that sets the designs apart. “We spend a lot of time analysing what’s going on in the market and where there are opportunities to stand out before we even begin designs. We want to create designs that sell,” McMillan says. The international recognition is a boost for Brother and cements the agency as a world leader in packaging design. n

BEST BEVERAGE EMPLOYS FONTERRA OPENS $120M SITE BROKER FONTERRA has opened its new IMPORTER The Best Beverage Company has enlisted Centurion Brokers to increase its Foodstuffs North Island distribution. Centurion will handle the three year old company’s Arizona Iced Tea, 28 Black Natural Energy, Taste Nirvana Coconut Water and Illy issimo brands in From left sales director Paul Elsom and national account the grocery channel. manager Chris Bhimy Best Beverage sales director Paul Elsom says as a small appeal to mainstream consumers, Best company a broker was needed to Beverage’s range contains no artificial gain long term traction outside of colours, preservatives or flavours and Auckland. “Centurion is a good fit offers a point of difference in the for us in terms of ethos and style. Kiwi market. Its 28 Black label is New They are as passionate about your Zealand’s first natural energy drink brand as you are and you can see their and the brand’s sugarfree variant enthusiasm and passion reflected in the contains natural sweeteners, making results,” says Elsom. The retail focused it suitable for diabetics. Elsom says company has a unique beverage the company will be launching new product portfolio which caters to the products later in the year, which will international trend for natural and continue to provide consumers with low sugar alternatives. Designed to real alternatives. n

state-of-the-art $120 million UHT milk processing facility at Waitoa. The new plant will enable Fonterra to increase its UHT production capacity by 100% over the next few years, processing more than 100 million litres of milk per year. The site will produce a range of Anchor UHT white milk and UHT cream for international markets and includes five new milk processing lines which will be up and running in August. UHT Operations Manager, Donald Lumsden, says the first cream production marks a significant milestone for the Waitoa UHT plant. “The global demand for dairy is growing and we’re now wellpositioned to meet this growth with our new state-of-the-art UHT milk processing site at Waitoa. The site will enable us to optimise the milk our farmers produce by turning it into high-value consumer products that will meet market demand in Asia.” n

SUPERMARKETS NEED TO BE WORKING SAFER

The National-led Government has introduced a wide ranging package of health and safety reforms under the new “Working Safer” banner. THEY are included in the Health and Safety Reform Bill which is currently before Parliament. All parties supported the first reading. With National, Labour, the Greens and New Zealand First supporting the bill, it will likely become law although the Opposition parties are pushing for changes during the Select Committee process which will also consider public submissions. Sparked by the Pike Mine disaster, many of the new requirements in the bill are based on Australia’s Model Work Health and Safety Act. While retail grocery is a comparatively safe industry (compared to the higherrisk forestry, farming, transport and construction sectors), supermarkets need to be aware of and address all the risks in their workplaces. There is absolutely no cause for complacency. The reform package includes: • An overhaul of the law, supported by clear, consistent guidelines and information for businesses • More funding for WorkSafe New Zealand to strengthen enforcement and education, and implement the changes • A focus on high-risk areas • Stronger focus on occupational harm and hazardous substances • Better coordination between government agencies • Improved worker participation • Stronger penalties, enforcement tools and court powers NARGON is a member of the Business NZ Affiliated Industries Group (AIG). Business New Zealand, the country’s largest employers’ organisation, has provided some key points for supermarkets regarding the proposed new regime. The bill aims to provide for a balanced health and safety framework involving protecting individuals from harm, providing for workplace representation, encouraging unions and employer organisations to take a constructive role in promoting improvements to workplace health and safety practices, promoting compliance and the provision of health and safety advice and education, ensuring that the actions of persons exercising health and safety functions are subject to scrutiny, and providing a framework for continuous improvement. A critical term is “reasonably practicable.” In relation to health and safety, it means workplaces must ensure they do everything they are reasonably able to do taking into account: • the likelihood of the hazard or risk occurring • the likely degree of harm involved • what the person knows or reasonably ought to know about the hazard or risk and ways of

eliminating or minimising it • the availability or suitability of ways of eliminating the hazard or risk • the associated cost and whether the cost is grossly disproportionate to the risk Everyone has a role to play. Employers and managers must exercise due diligence to ensure the workplace complies with the obligations imposed - they must keep up-to-date with relevant knowledge, understand the hazards and risks involved in the particular operation, eliminate or minimise those risks, and ensure there are processes for receiving and considering information about incidents, hazards and risks. They are responsible for complying with the law and for verifying the provision and use of resources and processes involved in keeping up-to-date and understanding, identifying and eliminating or minimising hazards and risks. The bill provides significant penalties for failing to comply with its numerous obligations. Workers also have health and safety obligations – they must take reasonable care for their own and others’ health and safety, comply with any employer’s reasonable instruction regarding compliance, and co-operate with any reasonable health and safety policy or procedure. The bill requires that workers have an opportunity to participate in health and safety processes. An employer must, as far as is reasonably practicable, engage with workers likely to be directly affected by a health and safety matter, share relevant information and give the workers a reasonable opportunity to express their views and contribute to the decision-making process. Any health and safety representative must be involved and all workers advised of the outcomes. The policy intent is that low to moderate risk industries, such as supermarkets, do not endure additional unnecessary compliance but that they do focus on identifying, minimising and hopefully eliminating risk. Stores should carefully consider the implications. A summary of the Working Safer blueprint is available on-line - http:// www.mbie.govt.nz/pdf-library/whatwe-do/workplace-health-and-safetyreform/Safety-First-blueprint.pdf n

Trina Snow Executive Director NARGON

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www.supermarketnews.co.nz

THE DIFFERENCE BETWEEN THE GOOD AND THE BEST

By Jasmine Walters

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

THE HUMBLE OATCAKE FOUNDED in March last year by Amanda Ewing, The Humble Oatcake is already gaining traction in the retail sector. The company produces handmade traditional Scottish and cranberry oatcakes in varying sizes from its small commercial kitchen in Thames. Ewing says her products are certified organic and differ from others in the marketplace because they are fresh. “My oatcakes are not highly processed and contain very simple high quality ingredients with no dairy, wheat flour, eggs, yeast, added sugar, additives or preservatives used,” she says. The majority of The Humble Oatcake’s ingredients are supplied by Ceres in Auckland, with the exception being honey which is sourced from a local Apiarist in the Kauearanga Valley. Ewing uses a machine to roll out the dough before hand cutting the oatcakes and baking them in a commercial oven. Ewing believes the increasing demand for

Amanda Ewing

artisan products is being driven by informed consumers looking for natural, local products and it is as much about nostalgia for times gone by. “Artisan foods are handcrafted by producers who care very much about the high quality of their products, and as consumers become more informed many are looking to artisan food producers for foods that they can trust to be made with care, and an honesty that is lacking in most mass produced products.” Already stocked in Farro Fresh and Moore Wilson, Ewing is currently expanding production with a view to supply more retail outlets, with two new staff members in training. For more information please visit www. thehumbleoatcake.co.nz

RUSSELL SMOKE HOUSE RUSSELL Smoke House was established in late 2011 by Chris and Carmen Cowen, with the company now producing an extensive range of hot smoked products including Kingfish, Salmon, Striped Marlin, Hapuka, Fish Salami and Mussels. Sold under the Russell Smoke House brand, the range is available in 150 - 350 gram pieces as well as whole fillets with the entire range produced in the company’s Russell premises. The products are deboned and packed and can be stored in a chiller for up to a month or frozen for up to a year. Chris says its fish is purchased from a commercial vessel every couple of days with the exception of its salmon, which is sourced from Stewart Island. The ingredients are kept simple to enhance the quality and flavour of the fish, with most of Russell Smoke House’s products only requiring sea salt and manuka smoke. “Everything is smoked in our purpose built traditional smoker. We use manuka timber which is stoked into an enclosed flame throughout the day and we do an old fashioned slow smoke, up to 10 hours, to infuse the flavour without drying out the fish,” he says.

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May 2014

The company has recently trialled its newest additions, Smoked Eel and Canape Packs at the La Cigale markets in Parnell, with both being extremely well received. Chris believes they are offering products and flavours which are unique in the Kiwi grocery sector. “We feel there is no comparison when it comes to our smoked products to others on the market. From our smoking technique, the honey golden colouring of our products, intense flavour to the de-boning of all our fish is far superior to anything we have seen or tasted.” While not currently stocked in supermarkets, Chris says the company is looking to enter the grocery sector, recently investing in new scales from Wedderburn and purchasing its first lot of bulk barcodes from GS1. Chris says there is a genuine demand for artisan products, with consumers becoming concerned with product origin and quality. “With artisan products the consumer has the opportunity to see where the food comes from, understand how it is made and see the hands that made it. Artisan products are seen as having a standard of very high quality as ingredients are mostly sourced from our own country,” he says. For more information please contact russellsmokehouse@clear.net.nz

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

LOCAL COMPANIES IN SINGAPORE FOR EXPORT

THERE were plenty of Kiwi visitors amongst the 65,000 trade visitors at last month’s Food & Hotel Asia expo in Singapore as well as a prominent New Zealand stand of suppliers looking for exports. Some of the New Zealand stands backed by Trade & Enterprise NZ are pictured above. The four day biennial event covered over 1.2 million square feet and had 3200 exhibitors from 63 countries.

NZ SUPPLIERS PROMOTE STRONGLY IN SINGAPORE A TRADE & Enterprise backed mission of food suppliers tackled the Asian market last month with a comprehensive New Zealand stand at the major Food & Hotel Asia expo in Singapore. The largest exhibition in the region, the show carried 3600 exhibitors from 63 countries and covered well over a million square feet. For the New Zealanders, both exhibitors and a large number of trade visitors, the show was an outstanding success. New Asian distributors were arranged and strong support given to existing distributors of New Zealand products. The shows was divided into a number of sections from production machinery through new grocery products, chefs and baking competitions along with a major wine and spirits show. Over 80 speakers took part in an associated international conference. Among the other highlights was a specialty coffee and tea programme that involved baristas from around the Pacific basin – a contest that was won by Auckland-based barista Hiroko Teramoto. NZ Trade Commissioner in Singapore, Tony Robinson, said the combined stand was the start of a strong push by exporters into the Asian market and this effort had certainly paid off for the less traditional products such as halal meat that had always been a winner in the region. The exhibitors on the New Zealand stand – and there were

others who chose to go it alone – included: Anzco Foods, Canary Food Enterprises, Enzafoods, Genoese Foods, Greenmount Foods, Highford Marketing, Loaf Handcrafted Breads, The Better Drinks Company, Rutherford & Meyer, OOB Organic, The Honey Company, Quality Food Southland, Van Dyck Fine Foods, Tatua Co-op Dairy, Zealong Tea and Tegel Foods. The show attracted over 60,000 buyers over the four days and was the 19th event that began many years ago in a hotel carpark. n

HIROKO TERAMOTO

PAN INDUSTRY PRODUCE CONFERENCE THE largest fresh produce conference and trade show in Australasia is coming to New Zealand next month – bringing an unprecedented collection of industry knowledge and expertise. This is the first time the annual PMA Fresh Connections conference has taken place this side of the Tasman and it is expected up to 1000 delegates and over 60 exhibitors will attend. United Fresh New Zealand Incorporated (United Fresh) is pleased to be joining forces with Horticulture New Zealand, the Australian Chamber of Fruit & Vegetable Industries and PMA Australia-New Zealand (PMA A-NZ), to bring this year’s conference to Auckland on June 24-26. It is the largest networking, educational and business-building event for the fresh fruit, vegetable and floral industries throughout Australia, New Zealand and the Pacific Rim. It will also allow United Fresh members to discuss industry-wide issues with their Australasian counterparts and to further trade across the Tasman and the Pacific Rim – a win-win for the New Zealand horticulture industry. All sectors involved in the local supply chain – including seed companies, growers, packers, wholesalers, government agencies and industry service providers – will be represented, as will leading retailers from New Zealand, Australia and Asia. It’s a unique opportunity for New Zealand growers and sellers to showcase our horticulture industry to buyers from China, Russia, US, UK and Canada. Delegates will also have the chance to tour some of our leading retail outlets and fresh produce companies, to learn more about our industry’s innovation and technology. ‘Innovate, Collaborate, Thrive’ is the theme of this year’s conference with speakers providing valuable insights into how our industry can adapt in the years to come. The conference’s plenary sessions will open at Auckland’s Viaduct Convention Centre, with Allan Ryan, founder and

executive director of Australia’s Hargraves Institute, who has devoted his career to helping companies harness innovation and collaboration to achieve real competitive advantage. Dr Adam Fraser, Australia’s premier researcher and consultant on human performance, will share his tips for achieving a high-performance work culture. And the University of Sydney’s Professor Salah Sukkarieh, an international expert on field robotics and intelligent systems, will explore how technology will shape the fresh produce industry in the next decade. Founder and editor-in-chief of Produce Business, Jim Prevor, will share his insights into consumer trends affecting the global fresh produce market, while Anthony Barbieri, senior vice-president at the global Produce Marketing Association, with over 30 years’ experience in the US food retail sector, will explore the role of Asia-Pacific in today’s global fresh produce industry. The conference will also feature sessions on traceability, integrated food systems, supply chain collaboration, negotiating and specialty produce opportunities. Working collaboratively with our transTasman partners across the whole supply chain is the best way to boost sales of fresh produce to regional and global consumers and help develop best business practice. For more information and to register to attend PMA Fresh Connections June 2014 in Auckland, please visit www.pmafreshconnections.com. au. Register by 9 May to receive the earlybird discount. To learn more about exhibition and sponsorship opportunities, visit http:// www.pmafreshconnections.com.au/pages/ sponsorship-and-trade-show.php. n

David Smith United Fresh www.unitedfresh.co.nz

supermarketnews.co.nz

I 15

lightingcheck PAK’nSAVE, ALBANY

We sponsored an independent lighting expert to review five Auckland supermarkets this month, their brief to gauge the quality of interior lighting at each store. consideration to the physical lighting installation as well as its light quality. The fresh produce section lacked the brightness and clarity that the aisles had, which housed linear tubes running their lengths offering a consistent and very clear display of shelf packaging. The aisles were also aided with skylights and windows at the front of the store – a visually appealing store on the whole but fruit and vegetables could use a boost.

COUNTDOWN, CITY

THIS large store with high ceilings had a ‘muddier’ quality of light lighting its products. With a yellower tinge as opposed to a daylight feel, the dimmer light struggled to reach the packaging creating far greater shadowing. The fruit and vegetables section stood out in contrast to the rest of the store, with colours coming through in this section despite the lighting needing more life throughout the aisles.

NEW WORLD, ALBANY

A DIMMER store with a lower ceiling that noticeably had the most failed lights out of all of the supermarkets. The streamline aisle lighting looked stylish, but left the fresh produce section at the supermarkets entry looking duller in contrast to the clarity of the aisles. Whilst the aisles were lit adequately the lighting felt colder with little impression of daylight, offering the least ambience of all the supermarkets.

COUNTDOWN, BOTANY

NESTLED within a mall, this supermarket had no access to windows but achieved a very clear and comfortable impression of daylight. In contrast to the Albany PnS it was far gentler on the eyes, yet still offered the spatial clarity and colour range The light was very uniform throughout and highlighted the colours and fresh appeal of the fruit and vegetables section, as well as excellent clarity on aisle packaging.

COUNTDOWN, MT ROSKILL

COUNTDOWN Botany had great consistency and visual clarity, which made walking into this windowless supermarket from the outside a smooth transition. The lighting was spacious, with the emphasis on effective linear tubes running the lengths of the aisles. Again, the segregated fruit and vegetable section was dimmer due to a different lighting design as per the Countdown Mt Roskill store, but this conscious design decision still gave the supermarket a consistent flow, with the aisle lighting delivering clarity and a sharp colour range that was easy on the eye.

www.supermarketnews.co.nz COUNTDOWN Mt Roskill had a range of lighting styles that showed great

May 2014

performance, best look and feel, and best colour rendering of all the stores reviewed, despite its lack of windows or skylights.

The results were interesting, many struggled in some areas, particularity fresh produce. New World Albany took out the top score, with the best environmental STORE LIGHTING

MAX PTS

NW Albany

CD Botany

CD Mt Roskill

CD City

P’nS Albany

HOW THEY SCORE?

MAX PTS

NW Albany

CD Botany

CD Mt Roskill

CD City

P’nS Albany

LIGHTING STATS

NW Albany

CD Botany

CD Mt Roskill

CD City

P’nS Albany

Watts per meter square

Lux per Watt

100

How was the ambience of the store? 10 8 8 7 5 6 Did the stores lighting have a consistent flow throughout? 10 8 9 8 7 6 How well lit was the product packaging? 10 8 8 6 6 5 How vibrant and appealing did the fruit & vege section appear? 10 8 6 4 7 6 How well lit was the meat & dairy cabinets? 10 7 8 7 6 6 Was the stores lighting design and installation an attractive feature? 10 9 7 8 6 6

Total 60 48 46 40 37 35 Percentage 100% 80% 77% 67% 62% 58% TOP SCORE

Average Storewide Night Time Lux level 1043 916 880 729 676 System watts 19,440 43,240 74,968 53,178 59,808

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I 17

storecheck OUR mystery shopper visited South Auckland stores this month and while Countdown Manukau took out the top score, the high level of customers

COUNTDOWN, MANUKAU

ON a warm Autumn day we visited a number of stores in the Manukau area. First up was a Countdown in a large block of shops which included a pharmacy, bakery, sushi, Mad Butcher, Burger Fuel, Cheese Cake Shop, doctors and dentist. Clearly a new store, our initial impression was very good. Wide aisles and overall very clean and tidy. The shelves were all well faced and the lighting made the products look bright and appealing. However, the fish section was quite average and poorly stocked. Some of the freezers were quite low as well. I went straight through the checkout as there weren’t that many customers.

PAK’nSAVE, MANUKAU

BY contrast the nearby Pak’nSave was really busy despite not being as nice a store as the Countdown. Floors were quite scruffy and the whole feel was older, but clearly it appealed as there were lots of customers about. Again the fish was poorly presented and not appealing at all. Signage and shelf facings were good as were the freezers, which were well stocked. The bakery section was good with an excellent range of cakes. There wasn’t enough checkouts open and the service, although friendly, was very slow.

COUNTDOWN, AIRPORT

NEXT up was the Countdown at the Airport. Apparently over 20,000 people work in this area so a supermarket to service the district is handy. What was noticeable on entry was the overall poor lighting did not present the products well, especially in the fresh produce area. The floor was scruffy and dirty in places. A number of out of stocks in most areas of the store and quite a few empty boxes in the aisles did not make a good impression

NEW WORLD,MANUREWA

LASTLY, it was New World in Southmall, Manurewa. A pretty full carpark and lots of people. One of the first things I noticed was the diabetic and gluten free section which was well stocked. Unlike other stores visited, this had an excellent selection of whole and filleted fish which was very nicely presented. All the

May 2014

STORE EXTERIOR

CD P’nS CD NW Manukau Manukau Airport Manurewa

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

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

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

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

STORE INTERIOR

CD P’nS CD NW Manukau Manukau Airport Manurewa

• Were your first impressions positive? (5 pts.)

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

• Adequately lighting/heating? (5 pts.)

• Instore signage clear adequate? (5 pts.)

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

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

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

STORE LAYOUT

CD P’nS CD NW Manukau Manukau Airport Manurewa

• Were the aisles wide enough? (5 pts.)

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

• Were all shelves clean, neat and tidy? (5 pts.)

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

PRODUCTS

CD P’nS CD NW Manukau Manukau Airport Manurewa

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

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

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

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

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

in other stores indicated the public didn’t agree. Plenty of low stock levels and out of stocks, especially in the fish section. shelves were well fronted and although the milk was a little low, there were no obvious out of stocks. The store was clearly older but clean, tidy and well lit. A noticeable point was the staff all had large easy to read name badges. Plenty to choose from in South Auckland. For me the nicest store was easily the Countdown in Manukau but judging by the number of people in the stores, Pak’nSave Manukau and New World Southmall were the public’s choice. n STAFF

www.supermarketnews.co.nz

CD P’nS CD NW Manukau Manukau Airport Manurewa

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

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

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

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

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

FRESH FOOD

CD P’nS CD NW Manukau Manukau Airport Manurewa

• Did the produce look fresh? PRODUCE (5 pts.)

FISH (5 pts.)

MEAT (5 pts.)

DELI (5 pts.)

BAKERY (5 pts.)

PRODUCE (5 pts.)

FISH (5 pts.)

MEAT (5 pts.)

DELI (5 pts.)

BAKERY (5 pts.)

• Was there a full range of produce?

• Was the Fish Counter staffed? (5 pts.) 5 5 4 5 • Was the Deli Counter staffed? (5 pts.) 5 5 4 5 • Was there anything or anyone who stood out? (5 pts.)

5 3 3 5

• Overall shopper experience (10 pts.) 9 6 6 8

HOW THEY SCORE? Maximum available score: 200 pts

CD P’nS CD NW Manukau Manukau Airport Manurewa 183 TOP SCORE

144

147

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I 19

h&baisle SCWARZKOPF NECTRA

SCHWARZKOPF has combined the beauty of nature with expert technology to launch the Nectra Colour range. Available in 12 shades, Nectra is the brand’s first nurturing hair colour range containing botanical oils and floral nectar. The permanent hair colouring offering is an ammonia-free, high-performance product which uses an optimized oil carrier system to provide excellent coverage and colour intensity. Nectra’s unique formulation

envelops individual hair strands to create a smooth, radiant result while an intensive care conditioner works to pamper hair and seal in colour for longer lasting results. “Nectra Colour will raise hair coloring to a nurturing beauty ritual. What I like about this colouring product apart from the marvelous result is its noticeable caring quality. When it comes to intensive hair care, combining plant oils with floral nectar is simply innovative,” says Schwarzkopf hair expert Armin Morbach. For the first time an Asian model is featured on the packaging of a Schwarzkopf product, with the brand targeted at a broader consumer audience. The Nectra launch coincides with the release of Schwarzkopf’s new hair colouring app. Schwarzkopf Colour Expert provides consumers with guidance on colouring and recommends products from the brand’s extensive hair colouring portfolio.

HANDY SPRAY MOISTURISER

UNILEVER has launched a convenient moisturising spray lotion with its unique formulation absorbing quickly

complex with nutri-ceramides and HiShine and offers either a subtle or bold look. The application brush applies the lightening crème solely to the desired area of the hair, giving consumers complete control. “I love the Wild Ombres because they make the hair incredibly luminous. The results are 100% guaranteed and since you don’t have to apply it to the roots, there’s no need for touch ups,” says L’Oreal Paris’ expert colourist.

HAIR THICKENER RANGE to leave skin feeling soft rather than greasy or sticky. Vaseline Spray Moisturiser uses compressed air and new technology to deliver 360 degree spray and is available in three variants – Total Moisture, Aloe Fresh, and Cocoa Glow. Total Moisture contains pure oat extract for soft skin, Aloe Fresh features pure aloe while Cocoa Glow is made with cocoa butter for glowing skin. Unlike other aerosol products, Vaseline’s new range allows for a continuous spray, even upside down, and is ideal for hard to reach places. Unilever senior brand manager Mariah Colella says Vaseline Spray Moisturiser is a category-changing innovation which provides busy women with a convenient moisturising product. “Many women have body lotion at home but aren’t using it on a daily basis because it takes too long to apply, slowing down their morning routine. With a convenient spray, Vaseline Spray Moisturiser will change the way women get ready,” says Colella. Three-quarters of consumers tested overseas found Vaseline’s moisturiser faster to apply than their usual lotion, with eight out of 10 consumers saying they found the lotion absorbed in less than 10 seconds.

OMBRE HOME HAIR COLOUR

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

May 2014

RESPONDING to the latest trend in hair colour, L’Oreal Paris has launched Préférence Wild Ombrés. The new release is the world’s first ombre home hair colour kit with its specially designed brush applicator allowing consumers to achieve a two-tone colour finish on their hair. The easy to use formula is a combination of lightening cream technology and a care

L’OREAL Paris has added to its popular Elvive brand with the release of New Zealand’s first high-concentration hair care range using filloxane. With 30% of women struggling with fine hair that lacks volume, Elvive’s Fibralogy range uses filloxane to create substance inside the hair fibre, resulting in thicker hair. Available in a shampoo, conditioner and double serum, the range’s shampoo thickens the hair fibre from within while providing deep cleansing. Fibralogy’s conditioner is an ultra-light formula designed for thin hair with heavy lengths and contains a softening agent for easy untangling and treatment. Double Serum can be applied to dry or wet hair and works to create substance while smoothing the surface of the hair for a shiny and silky finish.n

INNOVATION

Schwarzkopf continues to lead innovation in the NZ grocery colour market: recruiting new users and bringing overall growth back to the hair colour category.

The 1ST PERMANENT CARING COLOUR for exceptional hair nutrition NO AMMONIA with FLORAL NECTAR & BOTANICAL OILS**

MEDIA SUPPORT FOR 2014: $700K TVC Social Media PR Advertorial In-store Sampling National Consumer Promotion FREE LIP BALM* gift with purchase

*While stocks last. ** From Schwarzkopf.

Available in 12 divine shades. RRP: $14.99 supermarketnews.co.nz

I 21

snackfood&confectionery PECKISH DOMINATES CATEGORY PECKISH Rice Cracker’s are the number one rice cracker in the market with the brand valued at over $20 million. Growing at 24.7% (30/03/2014), Peckish is a new force within the biscuit category, outselling Tim Tams and Shapes in unit sales. Represented locally by DKSH New Zealand Limited, Peckish uses innovation to drive growth with flavour trends being a key growth strategy for the brand. Its range includes the recently launched Peckish Rice Snackers, an example of the brand launching a new product to fill a gap in the market. “We could see the flavoured snacks segment needed innovation to grow and this product is perfectly positioned to deliver this while delivering the retailer healthy GP’s,” says senior business manager Andrea Crutchley. Crutchley says consumers are demanding strong flavours in a convenient format.

NEW HANG SELL RANGE

GDL has launched a new hang sell confectionery range which is set to provide real growth to the segment. Four jelly lines, two butter candy variants, two fruit candy products and two chews have joined GDL’s offering under the WOW Sugar Free Naturals label. Produced in Australia by Prydes Confectionery, distributor GDL predicts the WOW range will appeal to sugar free shoppers, estimated at being around in excess of one million consumers. “The way forward for hang sell confectionery is to innovate. Confectionery has to taste great but consumers expect some sort of functionality in their indulgences and

May 2014

BULK food supplier Harvest Natural Foods has partnered with Masterchef winner Chelsea Winter to promote its Market Place brand. Chelsea will use her 26,000 Facebook followers to publicise the nutritional benefits of Market Place’s bulk bin dried on the product bins in the bulk foods fruits, nuts, seeds and confectionery. section so that consumers can scan Promotional signage featuring the code to learn about what the Chelsea’s image will also be featured Masterchef winner has to say about RECIPE FOR in Foodstuffs stores that carry these TRY MY theDELICIOUS different products. GLUTEN-FREE MUESLI SLICE products. Harvest Natural Foods is a FROM ME TO YOU... As part of its initiative to provide subsidiary of Brooke Holdings, sea which Chel the consumer with more information, purchased the company just over Harvest stores are placing QR codes three years ago. n

Chelsea Winter

“Overall the category is growing at 5.7% but it is seeing some tough times with significant discounting seen within the competitor set. This does not lead to a healthy category and sustained profitable growth for the retailers,” she says. n

WHITTAKER’S WINS LEGAL BATTLE WELLINGTON’S High Court has handed chocolate manufacturer Whittaker’s permission to use the name Berry Forest on its bars. Rival Cadbury had moved to block the trademark,

CHELSEA WINTER FOR MARKET PLACE

saying it was too similar to its own Black Forest label and would confuse consumers. Justice Rachel Dunningham agreed with Whittaker’s that although similar, Black Forest brought to mind Black Forest gateaux and that there was enough difference between the two to not cause any confusion in the marketplace. n

will pay for this combination. Stores can build sales and profit into this category if they blend in these types of lines,” says GDL co-owner Frank Geaney. GDL represents Prydes locally, with the Australian manufacturer recently purchasing the Snows business and amalgamating the two companies. “The combination of knowledge, recipes and plenty of input into research and development is bringing to the market a whole host of great tasting, innovative products that modern consumers want,” says Geaney. n

www.supermarketnews.co.nz

www.mymarketplace.co.nz www.facebook.com/ChelseaWinterDelicious

BEEF JERKY SEES GROWTH NEW Zealand’s number one beef jerky brand, Jack Links, is driving the $3.7 million jerky category with the brand growing at 25.2% (MAT 12/01/2014). Innovating to satisfy international demand, Jack Links selects and launches products from its global portfolio that suit the Kiwi market. Managed by DKSH New Zealand Limited, the popular brand is increasingly popular with women and

children and more health conscious consumers. The relaunch of the brand’s Sticks has proven successful as a great snack size or lunch-box filler. “As more consumers are exposed to Beef Jerky and see it as a healthy snack option, growth will naturally come. It is all about driving that consumer exposure to the segment,” says DKSH senior business manager Andrea Crutchley. n

TOTAL SUPERMARKETS - CURR MAT W/E 23/03/2014

T. Total Confectionery T. Block Chocolate T. Family Bags T. Boxed T. Bar/Chunky T. Treat/Fun Pack T. Chewing Gum T. Stick/Roll Packs T. Jumbo Bags T. Card/Tub Packs T. Handy Bags T. Multi Pack T. Novelty Bar T. Bulk Bags T. Bubble Gum

Val Sales Val % Chg YA $447,755,552 1.8% $115,922,635 11.3% $80,098,689 3.9% $53,573,605 1.4% $53,352,949 -2.6% $28,110,321 4.3% $22,261,918 -0.1% $20,745,763 -2.2% $20,740,649 1.5% $8,701,627 51.5% $4,973,122 14.3% $4,838,106 -8.9% $3,528,846 25.6% $1,087,261 -18.5% $636,478 -19.5%

Unit Sales Unit % Chg YA 189,194,121 6.7% 38,168,563 19.3% 34,347,416 7.2% 8,818,726 5.2% 49,726,109 4.1% 7,981,915 7.1% 9,758,555 2.9% 14,273,619 -3.7% 5,471,607 7.0% 4,036,509 61.5% 3,263,622 17.4% 1,958,741 -10.9% 2,072,155 34.7% 176,093 -21.5% 375,954 -21.4%

T. Total Snackfoods T. Potato Chips T. Packaged Nuts T. Other Cereal Snacks T. Corn Chips T. Extruded Snacks T. Unprocessed Snack Foods T. Meat Snacks T. Shelf Stable Dips T. Bread Snacks

Val Sales Val % Chg YA $332,703,179 5.4% $136,318,673 3.5% $69,858,595 14.8% $39,167,936 6.0% $34,569,374 1.7% $33,023,144 -2.2% $10,673,098 6.6% $4,400,225 23.6% $3,562,685 -0.9% $1,129,448 -8.5%

Unit Sales Unit % Chg YA 133,151,996 5.6% 66,530,008 3.6% 14,215,115 13.0% 13,365,827 10.0% 13,275,656 3.6% 16,829,650 4.2% 5,747,174 9.3% 1,781,864 20.4% 1,151,718 0.1% 254,984 -10.0% Source: Nielsen NZ Scantrack

Cash in on this Consumer promotion your Customers simply need to buy any speCially marKed paCK for their ChanCe to

Consumer promotion branded pos available to drive sales in your store Contact your dKsh new Zealand limited representative for more information. T&Cs apply, see www.winwithmentos.com. Aust & NZ residents 15+ only. Starts 2/6/14. Ends 11:59pm AEST 19/9/14. Retain specially marked wrapper/s. Max 1 entry/ person/day/wrapper. Promoter: DKSH New Zealand Limited (56998 Registered), 97 Walkers Road, Longburn, Palmerston North 4477, New Zealand.

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snackfood&confectionery MENTOS AN INNOVATOR GLOBAL BRANDS APPEAL

DKSH New Zealand Limited manages the successful Mentos label including its range of rolls, Pure Fresh and Aqua Kiss 3D Gum as well as the popular Chupa Chups brand. Mentos is a constant innovator, with new flavours launching as limited releases throughout the year to keep consumers engaged with the brand. The recent Very Berry limited release has driven excellent in-store presence and consumer demand while the Chupa Chups brand is also driving innovation through flavours and unique POS solutions to ensure strong impulse driven purchases. Strong players in the market, Mentos and Chupa Chups have a combined 4% dollar share of the confectionery market. Mentos Gum has a 3.9% dollar share of the total gum category (MAT 30/03/2014). “Consumers are demanding regular innovation to keep engaged with brands. Consumers are also engaging more with brands outside of the regular shopping channels on social media, for example, and brands that perform well in this forum translate to increasingly

loyal consumers at point of purchase,” says senior business manager Steve Young. Chupa Chups New Zealand’s Facebook page is testimony to this with over 182,000 likes. Young says innovation will always be a growth driver, especially with younger consumers responding quickly to trends. One unique product that was quickly picked up was Mentos’ Pure Fresh Gum, the first gum introduced to New Zealand in a tin format. Mentos is currently rolling out an on-pack consumer promotion, with branded POS available to drive sales in-store. DKSH also represents the Werther’s brand which satisfies traditional candy consumers and represents 2.5% of the overall confectionery market (MAT 30/03/2014). The brand generally sees stronger sales through the winter period where consumers are more selfindulgent. n

DARK CHOC TRENDING DONOVANS popular chocolate pouch range has grown 22% in the past year, leading the way for the recent launch of Dark Chocolate Caramels in a 170g resealable pouch (TKA Aztec MAT 23/3/14). Particularly popular with caramel lovers who enjoy a chewy caramel centre, the new addition responds to the growing consumer trend towards dark chocolate. “This reflects what is happening internationally, with reported US sales of dark chocolate growing as consumer’s preference for chocolate has increased over other sugar confectionery,” says Donovans brand manager Julia Toomey. The Donovans range of premium blocks, fudge, and boxed chocolate also fits with the

current trend of locally made, craft products. Proudly made in the Waikato, the heart of the New Zealand dairy country, Donovans chocolates are lovingly crafted using Swiss technology mixed with a good dose of Kiwi ingenuity. The range is seen as an accessible, yet premium product. “We have found that in tough economic times, a premium product can be justified as an affordable indulgence,” says Toomey. Prolife Foods acquired the Donovans brand from the Donovan brothers three years ago last month. Since then, the brand has been redesigned to reflect its core values of warmth, craftsmanship and quality New Zealand made chocolate. n

LINDT LEADS MARKET LINDT continues to add value and profitability to all of the chocolate categories and is growing ahead of the market as consumer’s trade up to premium chocolate. Represented by DKSH New Zealand Limited, the brand’s blocks are growing at 8.6%,

May 2014

leading the market with innovation within this category. Its newly released Sublime Mint Creation is performing well and driving further growth within premium blocks. In boxed chocolate, Lindt’s Lindor range has grown 5.9%, driven by the Lindor Bags 125g range with a staggering 74.6% growth. Lindor added to its offering late last month, launching Strawberries & Cream in 125g and 150g variants. Featuring a white chocolate and strawberry infused shell over a smooth melting white chocolate strawberry centre, Lindor’s new addition has mainstream consumer appeal. Its packaging makes it ideal for Mother’s Day gifting. n

WILSON Consumer covers all segments of the category from premium through to mainstream with its portfolio including the Guylian, Reese’s, Hershey’s and Jelly Belly brands. The sales and marketing agency added to its confectionery offering late last year, introducing the Lir range of products to the New Zealand market. Lir is an indulgent range of authentic Irish products made using the Baileys and Guinness branded fillings and proved popular with Kiwi consumers. Wilson’s business manager, David Cunningham, says consumers are seeking out more international brands and products. “Over recent months the American trend has been strong with consumers looking at confectionery from the US. We have seen a continual growth in the Reese’s brand as this is a unique flavor profile which has stirred consumer interest,” he says.

Cunningham believes consumers are also looking for value for money within the highly competitive category, with opportunities driven from product innovation, in both flavours and packaging and also growth in the premium value segments. “Consumers are more aware of pricing and value for money, we have seen a loyal consumer segment who are willing to pay for value or for a specific flavour profile. There is also a strong segment who are focused on price points and this has been fueling both the market pricing, and retailer activity in recent months,” he says. Many of Wilson Consumer’s confectionery brands are offering expanded flavour portfolios and new pack designs for seasonal events. Cunningham says Wilson’s Christmas range in 2014 will have a broader flavour profile and also more innovative packaging for the gifting period. n

CADBURY ADDS TO RANGE MONDELEZ International is one of the world’s largest snacking companies, with market leading brands across confectionery and biscuits globally. In New Zealand, its flagship chocolate confectionery and chocolate biscuit brand is Cadbury, with other major brands including Pascall, The Natural Confectionery Company, Ritz and Oreo. Last month the company expanded its Ritz brand into flavoured snacks and also introduced a new Oreo variant – Peanut Butter & Choc Cream. Cadbury’s head of category development, Adrian Blake, says the New Zealand market is unusual. “Confectionery and snackfoods have consistently been among the highest growth categories in New Zealand grocery – this is unique in developed markets,” says Blake. Blake believes significant future growth can come from interrupting shoppers on every trip, encouraging more frequent impulse purchases. “Truly innovative new products that can command a higher price will add value to the category without necessitating increased consumption,” he says. The company’s TV series, Cadbury Dream Factory, was incorporated in-store through promotional activity including the chance to win the dream of becoming an official chocolate taster. Blake says this kind of activity assists with new product launches. “There is a lot of ‘noise’ instore which makes it harder to

communicate a new product. However, some original and inventive promotions that are appearing in the market can complement a launch effectively.” n

SNACKS DRIVE GROWTH SNACK foods, which encompasses potato chips, cereal snacks and nuts, has seen over $40 million of growth in the last three years to be a $325 million category. Packaged nuts represent over 60% of the total growth ($24 million) with this segment ideally placed to benefit from consumers seeking healthier snack options. Potato chips remain the biggest single segment in snack foods, at close to $110 million and have grown by $10 million in the last 12 months with Kettle Chips as a key driver as consumers seek more authentic

MACRO SNACKING A SUPER CATEGORY BISCUITS (sweet and crackers), snack foods and wrapped snacks accounted for $925 million of retail sales in grocery last year. With an average growth of 3.5% over the last 10 years, macro snacking is a key source of growth for many stores. Just as importantly, this growth is predicted to continue, with Euromonitor forecasting that macro snacking is likely to be a $1bn super category by 2016. AS the largest single category within macro snacking, biscuits are worth $375 million in supermarket sales. At the heart of this category is Griffin’s, the nation’s number one biscuit manufacturer who produce nine of the top 10 selling biscuit brands. “Our market leadership is based on consumer relationships,” says Josette Prince, Griffin’s general manager sales and marketing. Chocolate biscuits account for over 35% of all biscuits value in the Kiwi market with brands consumers love including Griffin’s Toffee Pops, Griffin’s Squiggles,

premium choices. “ETA’s focus is on category growth drivers such as ETA Kettle’s and our “Blast from the Past” re-launch of kids cereal brands such as Monster Munch, Muncheese and Cheeseballs,” says Griffin’s general manager sales and marketing. The underlying health trend driving both crackers and snack foods reflects the performance of wrapped snacks where the category has grown of 2.5% in the last three years to $131 million. With both bars and fruit novelty products offering alternative snacking choices for consumers, this is a category where new news has been key. Nice & Natural has lead the way in fruit novelty over the past six months, re-invigorating this segment with a re-launch of its offer, featuring new designs including Skulls and Strings, and delivering 12.5% growth in this $12 million per annum segment. n

JOLLY TIME SELLING WELL

DEMAND for Jolly Time microwavable pop corn is increasing considerably month by month with recent Aztec data showing 39.9% growth in the last quarter (30/3/14). Sold predominately through Foodstuffs and convenience stores, Jolly Time experienced the largest brand growth in the segment this quarter, 40% more than other

Arnotts Tim Tam’s, Griffin’s Mallow Puffs and the comeback kid in 2012 Griffins Choco-ade. “Chocolate biscuits offer an everyday indulgence and this winter Griffin’s innovation offers an exciting sequel and so much more to drive retail sales growth,” says Prince. The plain sweet and kid’s biscuit segments represent 35% of the category while changing consumer needs have seen crackers deliver strong growth of 15% in the last three years to be a $150 million category in its own right. This growth has been fuelled by innovation including rice, multi grain, entertaining crackers and Lite bread. “With Huntley & Palmers Lite bread, Huntley & Palmers 10 Grain and Seeds meeting consumers demands for healthier alternatives and the huge success of Snax, 62% value growth in the last quarter, through innovation and its ‘1001 to Snax’ campaign it’s been a great six months for Griffin’s crackers and the category,” says Prince. n

brands. Data also shows Jolly Time’s top two variants average 90 and 78 units per store weekly, more than twice the turnover numbers of the biggest brand’s best selling SKU. Jolly Time’s Cheez flavour also averages 28.6 units per store weekly. “Confidence is building with both retailers and consumers. The Jolly Time brand is now well accepted with a balanced cross section of flavours and fair retail pricing,” says GDL co-owner Frank Geaney. Sold in 100g packs, with the exception of Healthy Pop at 85g, Jolly Time has higher average yields, providing consumers with 20% more popped corn than other well known brands. Jolly Time manufacturers, The American Pop Corn Company Ltd, has an equivalent product to virtually every microwavable popcorn variant on the market. Geaney says the brand is now strong enough locally that consumers are prepared to try new flavours. Fun Mania will soon be added to Jolly Time’s three pack range and the brand is currently trialling Jalapeno Butter in Auckland following the success of savoury variant Cheez. “GDLbrands will continue to bring new and innovative Jolly Time products to the New Zealand market to add some real growth to microwavable pop corn sales,” says Geaney. Geaney says a new premium Jolly Time offering that will add variety and invigorate the microwavable pop corn market will be launched in the coming months. n

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FFNZ

FINE FOOD 2014 OUTSTRIPS SUCCESS OF EARLIER SHOW

FINE Food New Zealand – the country’s foremost international food, drink and equipment trade exhibition - returns to the ASB Showgrounds this June 22-24, bringing together the best in the food retail, foodservice and hospitality industries. This year’s show is anticipated to outstrip the success of its

predecessors, offering the industry a fantastic opportunity to connect directly with leading businesses and be exposed to the latest and most innovative products and services. We’re delighted to continue our relationship with key stakeholders such as Southern Hospitality, Burns & Ferrall and Gilmours, as well as welcome many new exhibitors including Höpt Soda from Lion Dairy & Drinks, Kapiti of Fonterra Brands and Segafredo Zanetti. All in all, approximately 300 top companies will be on showcase over the course of the show. As always, visitors of Fine Food New Zealand will also get the opportunity to see the latest products and offerings from a host of international exhibitors from around the world with representation from countries such as Sri Lanka, Italy and Japan. Fine Food NZ 2014 is packed with exciting features from key industry

associations including the fast-paced ‘Barista Smackdown’ competition where up to 96 baristas will face off against one another in a head-to-head knockout event. Vital industry events will also be on showcase over the three days. The BIANZ New Zealand Bakery of the Year Competition, the NZ Chefs Association’s Gourmet Pacific Challenge and the prestigious Best New Product Awards are just three events those in the industry should not miss out on. Entry to Fine Food New Zealand 2014 is free if you register before June 13, so don’t miss this golden opportunity to improve your business by securing your entry at finefoodnz. co.nz. We look forward to seeing you there,

Dona White CEO, North Port Events

FFNZ FIRST FOR SILVER FERN DEBUTING at Fine Food New Zealand next month is grocery and foodservice meat supplier Silver Fern Farms. The co-operative will be showcasing its premium beef, lamb and venison products including its SILERE alpine origin merino. The

RETAIL HIGH ON THE AGENDA FARRAH Wraps and Equagold – two Kiwi companies who pride themselves on providing quality products to their customers – will once again showcase to the thousands of industry professionals in attendance at the Fine Food New Zealand exhibition. While Farrah Wraps’ stand will have some focus on foodservice, both companies have realised the potential Fine Food offers in getting face-to-face with all the big players in the food retail sector from across the country. James Wigley, marketing manager of Wellington based Farrah Wraps, says Fine Food is a fantastic medium to target all leading supermarket chains, high-end delis and convenience stores. Having secured key national distribution partners and developed separate retail and foodservice ranges, Farrah Wraps is using the show as a platform to reinforce relationships with suppliers and customers, and to

May 2014

discuss distribution opportunities with new retail outlets. Wigley says being able to communicate the intricacies of the products and philosophy of the company directly to prospective retail buyers doesn’t come around often. In fact, Wigley says the new Farrah Flour Tortilla range in foodservice and the Super Soft Snack Wrap in retail were partially inspired by talking to people about new product development at the exhibition in 2012. Like Farrah Wraps, vanilla specialists Equagold are also targeting the retail market at Fine Food. Ross Appleton of Equagold says despite the relatively small size of the New Zealand retail sector in comparison to other countries such as Australia, the fact that the show attracts visitors from all over the country always makes it a great opportunity to further secure distribution. Appleton will also be looking for international distribution and hopes to spend some valuable time with overseas visitors during the three day event. While being able to showcase your company successfully to all the attendees is crucial for exhibitors, Appleton says networking and being updated on what everyone in the industry is doing can be just as important in growing your business. Farrah Wraps and Equagold are both exhibiting in the Bakery & Confectionery World of Fine Food NZ at stands L24 and L13 respectively.

brand’s newly launched Premier Selection Reserve Beef – beef which guarantees consistency, tenderness and taste through its science-backed Eating Quality System – will also be on display. Visitors can sample Silver Fern’s range at stand L32.

KIWI DISTRIBUTORS WANTED SEVERAL international exhibitors at next month’s Fine Food New Zealand are hoping to find Kiwi distribution partners. Australian manufacturer Mama Ka’z will be showcasing its banana bread and muffin ranges at New Zealand’s largest trade show with the aim of obtaining local distribution. The company’s all natural banana breads are made with 100% real fruit and contain nine bananas in each loaf. With a shelf life of 5-7 days, the Mama Ka’z range can be frozen for up to six months. Fellow Australian company, Latin Deli, is also anticipating its participation at Fine Food will help grow its range of South American products in New Zealand. Latin Deli’s extensive range includes sauces and seasonings, beverages, beans, flours and tinned products. Mama Ka’z will be located at stand N02 while Latin Deli will be showcasing its range at stand M17.

PRODUCT AWARD CONTEST AT 2014 FINE FOOD THE best new product awards that proved highly successful in 2012’s edition of Fine Food, continues again this year with four $5000 advertising programmes being awarded in the four sections. This year’s awards are solely sponsored by Review Publishing through its two industry magazines – SupermarketNews and Restaurant & Catering News. The awards cover excellence in food and beverage and foodservice and the four major winners will receive substantial publicity and promotion

enhancing their brand profiles. The entries in the competition will also be displayed in a new product showcase section at the expo. The four categories being awarded this year are Best New Retail Grocery Product, Best New Foodservice Product, Best New Foodservice Equipment Product and Best New Fresh Product. Entries close on June 1 and the criteria and entry forms can be requested from expo organisers Northport Events on Auckland (09) 376-4603.

CREAMY FROM KAPITI

KAPITI declares itself passionate about the pleasures and principles of great food, saying its stand at the Fine Food Show will be no exception. Kapiti’s specialty cheese and premium gourmet ice cream ranges will be on display, with lots of tasty treats to sample. Visitors will be invited to taste awardwinning Kapiti cheeses and talk to experts about tailoring cheeseboards to fit ‘specific needs’. For the sweet of tooth, this is a great chance to indulge in the Kapiti range of premium ice creams. Kapiti will be located at Stand 38.

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2014 FINE FOOD EXHIBITORS COMPANY STAND Accolade Packaging D39 F15 ACR SwiftPOS Point of Sale Systems Acton International Marketing Ltd A15 Allpress Espresso G22 Alpine Gold B29 Andrew Hawley G38 Anzco Foods N30 Atomic Coffee Roasters A28 Attibassi A22 Baking Industry Association of New Zealand J25 Barker Fruit Processors K38 Beijing Yin Qi Cheng International Exhibition C16 Berica E42 Beverage Services E34 Bidvest R27 Biopak NZ D28 Birkenstock M13 BLI (Thailand) Co A16, A18, B17, B15 Blue Coconut Distribution N09 Bon Accord Products B46 Burns & Ferrall D04 Caffe Vergnano Espresso 1882 A22 Calico Cottage Fudge Systems J21 Charta Packaging D40 Chef Shop H14 Chiasso Coffee Co. B37 ChocCreator J15 Choice Catering Equipment H22, G21 Citrocasa A22 Coffee Trendz H17 Confoil New Zealand J44 Cossiga F38 Croust’wich J18 D&L Packaging H04 Detpak D34 Disposable Tableware A31 EFTPOS New Zealand H08 Embassy of The Republic of Argentina B07 Emerald Foods C30 ENZA Foods NZ P16 Epicure Trading G18 Epicurean Books H18 Equagold L13 Espresso Engineers E16 Espresso Machine Specialists B31 Eurotec E46

May 2014

COMPANY STAND Everything Coffee A35 C21 Expolanka Teas Expresspak D42 L39 Farmers Mill Farrah Breads L24 Federal Merchants & Co A27 Federation of Malaysian Manufacturers C04 Festive G28 Finest Foods Products A42 Flexigroup H07 Fonterra Brands C38 Food Equipment Distributors New Zealand K37, N18 French Imports L28 Fresh As K16 Fresh To Go P12 Fruit Solutions K28 GBACO Corp A20 Gelato Amante B19 Gilmours K32 Ginelli & Sons M15 Golden Flower International N12 Goodman Fielder B28 Grease Lock System H20 Green Valley Dairies C28 Groenz A13 Hobart Food Equipment E28 Home Gourmet L22 Höpt Soda A37 Hospitality New Zealand F46 Hospitality Rentals E19 House of Knives H30 Huhtamaki C34 Incafe B34 Interfridge H09 JC’s Quality Foods N06 JL Lennard E24 Jomei’s Fine Foods L19 Kako Chocolate K24 La Cantina J08 La Fromagerie L35 Label and Litho D38 LASCO - Lean Artisan Smokehouse Company J09 Latin Deli / Salters Fine Foods Pty M17 Lees Pac C44 LHF K14

COMPANY STAND Lincoln Bakery K22 F34 LKK Food Equipment Longlife Health N5 Mackies Asia Pacific J22 Madeo A22 C22 Majors Group Australasia Mama Ka’z N02 Marine Resources Development A16 Matakana Superfoods A38 Maxwells Pastry J19 Mebel Art Sp. Z o.o. C18 Mediterranean Foods N21 Mediterraneo K20 menumate H10 Meseta A22 Moffat F04 Mojo Coffee Cartel B45, B48 Molly Woppy J11 Natural Sugars (NZ) N12 Nekta Products C31 Nestle NZ A01 Netropolitan A22 New Zealand Chefs Association Inc Q14 New Zealand Sugar Company Ltd A19 NEWSHINE NZ G46 Nutritious Foods A08 Nuttz Gourmet Selection N7 O-I New Zealand D30 Olite Exhibition Consulting B4,6,8,10,12,16,18 C3,5,7,9,11,15,17 Omega Seafood P15 Original Foods NZ J17 Pete’s Packaging E31 Premier Beehive NZ R07 Provida Foods N11 Punja’s NZ K13 Quack ‘A’ Duck Q10 Quality Foods Southland N18 Quickleen F47 Ranga L06 Rational NZ D16 ResoTech Foods M30 Restaurant Association of New Zealand B39 Review Publishing F45 Rhima New Zealand H42 Roband New Zealand G16

COMPANY STAND Robot Coupe Australia D24 K21 Rogers Homewares Safco E04 K05 Saharas NZ Salumi Australia L21 Sanelli Knives A22 Sanmik Natural Foods P08 Schott Commercial Ltd G34 Sealord NZ N17 Segafredo Zanetti NZ G42 Service Foods N24 Shore Mariner M18 Shott Beverages L14 Silver Chef H12 Silver Fern Farm L32 Skazka European Imports J02 Skope Industries E40 Solemate Safety Solutions M12 Soprano Limoncello K10 Southern Hospitality F16 Sovrano Limoncello M09 Springbrook Foods L31 Stagionello A22 Stuart Alexander & Co A32 Swift & Company Trade Group R09 t leaf T A30 Takaje by Tre-Spade A22 Tastegreece Food Trading L36 TBK Network G10 Te Mata Figs J20 Teutonia F28 Thirst Iced Beverages A33 Tiger Coffee B34 Toasted Espresso B21 Traditional Brazilian Foods K40 US Meat Export Federation Q08 Vito NZ G08 Waiheke Herbs N03 Washtech G04 Wedderburn E38 Weston Milling J38 Wildfire Commercial Kitchen and Bars E10 WizBang Technologies H34 Zany Zeus Ltd D29 Zelati N29 ZeroPak Vacuum Sealers E29

EXTENDED SUPERFOOD OFFERING MATAKANA Superfoods will once again be exhibiting at the upcoming Fine Food New Zealand trade show. The second time exhibitor has come a long way since 2012, where its range consisted of just five products. This has now built to over 50 lines, encompassing super powders, coconut products, super foods and blends as well as capsules. Owner Kevin Glucina says he is looking to meet with international grocery connections and is targeting both local and overseas buyers. Glucina says several new retail products will be on display during the show including Moringa Leaf Powder, Purple Corn Flour and Sticky Amino Coconut Sauce, which is a substitute for teriyaki sauce. The new products can be seen at Matakana’s stand at A38.

NEW PRODUCTS ON DISPLAY

ZOONO HYGIENE RANGE AUCKLAND based Easy Kleen has been appointed as the exclusive NZ distributor of the Zoono range of products for the hospitality sector. This game-changing technology provides long lasting protection against germs, bacteria and viruses and is ideal for use in the deli, bakery and butchery departments. Its hand protector offers 24 hours of protection with a single application and continues to work even after hands are washed while Zoono’s Z71 surface protector provides up to 30 days of protection with one application. Tested and proven internationally, the Zoono range is available exclusively from Easy Kleen and will be showcased at the company’s stand during the Fine Food New Zealand exhibition.

LEAN Artisan Smokehouse Co (LASCO) is looking to double its current output when it exhibits at this year’s Fine Food New Zealand. The first time exhibitor will showcase several new products at the June show including additional venison and beef salami lines in both retail and foodservice packs. LASCO is hoping its presence at FFNZ will increase brand awareness and improve distribution through retail and foodservice outlets. “We are very excited about exhibiting at the Fine Food show, this is going to be a great launching pad for the next stage of our business,” says sales and marketing manager Trudi Peet. The brand’s 100% beef salami is already available through New World, PNS, Four Square, Fresh Choice, Super Value and Farro Fresh, with negotiations to be stocked in Bidvest underway. Visitors can try LASCO’s range at stand J09.

KINCO RANGE ON DISPLAY

COWLEY Services will be showcasing its Kinco range of display cases at the upcoming Fine Food trade show. The exhibition will also serve as a launch pad for the company’s extensive 2014 product catalogue. Featuring commercial refrigeration, heating

displays, and storage cabinets for a wide range of food service applications, Cowley’s catalogue is a must have for retailers. Visit Cowley at stand H09.

SPRINGBROOK BUILDS BRANDS

SPRINGBROOK Foods will be showcasing its retail brand Boca at the upcoming Fine Food show, with new additions Mexican Salsaucinade and Crushed Horseradish on display. The condiment manufacturer will be targeting Foodstuffs’ deli managers, Progressive grocery buyers as well as independent butchers, delis and vegetable stores at the biannual show. Springbrook is also hoping its first Fine Food exhibition will build its Boca and Zing brands, improving national distribution. Visitors can locate Springbrook Foods at stand L31.

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NEW GUILT FREE SNACKING

ATKINS Nutritionals has launched a new range of indulgent bite sized treats suitable for followers of the Atkins diet and consumers looking for healthy snacks. Low in carbohydrates and sugar, Atkins Endulge Chocolate Candies contain rich smooth chocolate morsels dipped in a candy shell. Available in chocolate and chocolate peanut variants, Endulge Chocolate Candies are sold in boxes of convenient 28g single serve packs. n

ITALIAN PASTA IN NZ IMPORTER Eurodell has introduced the Divella pasta range to the New Zealand market. The range features six products and includes Conchiglioni Nest, Fettuccine Nest, Gluten Free Spaghetti, Gluten Free Penne and Gnocchi. A well known brand in Europe, Divella has been produced in Italy for the past 120 years and its importer predicts the premium range will be well received by Kiwi consumers. n

PITANGO FREE RANGE SOUP

DOLCE GUSTO ADDS FLAVOURS

TWO new indulgent flavours have joined Nescafé’s Dolce Gusto capsule range. Chai Tea Latte is a blend of rich, black tea smoothed with milk and infused with cinnamon, cardamom, cloves and ginger while the brand’s new Mocha variant combines hot chocolate and dark roasted coffee. Mocha and Chai Tea Latte are both sold in boxes of eight capsules. n

May 2014

LOW CARB BREAD IN A New Zealand first, Goodman Fielder has released a range of bread under its Freya’s label which contains 40% less carbohydrates than standard multigrain. Freya’s Lower Carb range reduces

the wheat flour content of the dough and replaces it with soy protein and extra seeds. The revolutionary new range is offered in Soy & Linseed, 5 Seed and Toasted Sesame & Soy variants. n

NEW VITAFRESH CORDIALS

ALCOHOL YOGHURT

HANSELLS Vitafresh label has launched two limited release variants with White Peach & Passionfruit and Tutti Frutti Blue joining its popular powdered drinks range. All Vitafresh flavours contain 25% more vitamin C and 25% less sugar than orange juice. n

EPICUREAN Dairy has launched New Zealand’s first gourmet yoghurt with a dash of alcohol from its The Collective brand. Raspberry & Amaretto contains a double layer of fresh raspberry and Amaretto liquer compote folded through the brand’s signature thick and creamy gourmet probiotic yoghurt. The limited edition variant is handcrafted and has the benefit of being gluten, gelatine and preservative free. n

KIWI soup manufacturer Pitango has launched a free range Chicken and Vegetable variant in both the Australian and New Zealand markets. Made with free range chicken and locally grown organic vegetables, Pitango’s new offering is 99% fat free, gluten free and contains no added preservatives. The 600g pouch serves two and is likely to be a popular addition this winter. n

DAIRY-FREE MOZZARELLA

WANT WANT LAUNCHED ORIENTAL Merchant has introduced international rice cracker brand Want Want to the New Zealand market. The world’s number one rice cracker producer, Want Want’s unique range includes Senbei, Shelly Senbei and Seaweed variants that are twin packed to retain freshness, texture and flavour. Senbei is an oval cracker packed full of flavour while the brand’s Seaweed variant is a large round

cracker with real seaweed pieces. Shelly Senbei is a savoury cracker with a sweet icing, providing just the right balance of salt and sweetness. Importer Oriental predicts the Want Want range will be a hit in the mainstream market. n

WITH an increasing number of Kiwi consumers looking to cut dairy from their diets, Angel Food has released a mozzarella alternative in a 300g film-sealed pack. Containing pea protein, pea starch and sunflower oil, Angel Food’s new addition is a melting product that can be grated or sliced and used on pizza, lasagne or toasted sandwiches. “We believe it’s the first time such a product has been made in New Zealand, but we are confident demand will be high – the number of people with dairy allergies and intolerance is soaring,” says Angel Food CEO Alice Shopland. The company also produces dairy-free alternatives to parmesan and cheese sauce mix as well as vegan meringues. n

NEW LOOK SOUP MIX SUN Valley’s lentil and soup mix offering has received a packaging overhaul in time for the upcoming cold season. The new look packs provide great standout on shelf and

can be seen on the brand’s Green Split Peas, Soup Mix, Yellow Split Peas, Red Lentils, Pearl Barley and Brown Lentils. n

HOWLER HOTDOGS GOLDEN Goose Foods has launched Howler Hotdogs in Mini Cheese and Original variants. Available in packs of 21, Howler’s hotdogs contain a beef sausage on a stick and can be baked, rather than fried, in 15 minutes. The zip-lock packaging has also been designed with consumers in mind, freeing up valuable freezer space. n

NEW POISE LINERS

KIMBERLY-Clark has added to its Poise range, releasing Microliners for light bladder leakage. Sold in packs of 10, Poise’s new liners are thin and flexible and proven to be three times drier when wet than leading feminine care products. n

SWEETIES IN SEASON TURNERS & Growers new season Sweeties mandarins are now available in-store. Sweet, easy to peel, and seedless, Sweeties make a healthy lunchbox addition during the winter months and are sold in 1.3kg bags. n

Icing

Queen’s Ready-To-Roll Icing is a great way to decorate cupcakes, cookies & cakes. Designed for ease of use, simply knead and roll, no mixing or cooking required. Available in Coloured (red/black/yellow) and Classic White.

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CHOC CRANBERRIES ICONIC dried fruit brand Cinderella has added to its offering, releasing Dark Chocolate Coated Cranberry Delights. Ideal for baking or as a snack, the chocolate coated red cranberries are available in handy resealable packs. Cinderella is represented locally by James Crisp, with the brand supplying baking products since 1956. n

BREAKFAST COOKIES COOKIE Time has launched toastable Breakfast Cookies in two flavours - Superfruits and Nut Seed & Honey. Developed specifically for breakfast, the new additions are a good source of fibre and energy in a convenient format. The Superfruits

Ready-To-Roll

Breakfast Cookie is made with blueberries, strawberries, cranberries and pomegranate and contains 30% less sugar than the original Chocolate Chunk cookie. Nut Seed & Honey contains hazelnuts, almonds, pumpkin kernels, and chia seeds and 50% less sugar than the brand’s Chocolate Chunk cookie. Convenient breakfasts are a fast growing market in New Zealand, growing at more than 10 times the rate of the overall breakfast category. n

Queen hand select vanilla bean pods from organic certified plantations in some of the most exotic locations, including the Madagascan region and the South Pacific; famous for growing the strongest, most aromatic vanilla beans in the world. In 1897, Queen won its first award for excellence in vanilla. Since then Queen’s commitment for unsurpassed quality and care of the vanilla industry has earned its reputation as one of the world’s finest vanilla producers. ‘Lift your baking to a whole new level’ enjoy a bottle of Queen Certified Organic Vanilla Extract 50ml for only RRP $4.69, 100ml RRP $7.99, or Organic Vanilla Bean Paste for RRP $11.49.

For more information or recipes visit queenessences.co.nz or join us on Facebook

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LIQUOR

WINEMAKERS TO ENTER AWARDS

TOP winemakers are encouraging their peers to enter this year’s New World Wine Awards, with entries opening on the 12th of this month. The awards provide extensive brand exposure for winners, with all awardwinning wines guaranteed national distribution through New World stores. Simon Swa from Peregrine Wines, which collected two gold medals last year for its Saddleback range, says it is this kind of promotion which separates New World’s Wine Awards from other competitions. “There is a well-planned program of in-store promotions, online publicity and printed media that is triggered by a medal win so the commercial benefits are immediate and meaningful. Without doubt, we have enjoyed a notable increase in sales and a heightened level of brand awareness,” says Swa. In the first six weeks of the results being announced last year, 364,000 bottles of the Top 50 wines, with a retail value of $4.7m, were sold were sold throughout New World stores. All wines entered must retail for below $25 a bottle and there must be at least 6,000 bottles of each wine available for sale. The New World Wine Awards is New Zealand’s only wine show which features a low alcohol category, providing an opportunity for wineries that are at the forefront of responding to consumer demand for high quality

reduced or low alcohol wines to benchmark their wines. The awards will be judged by an independent panel of 13 wine experts, including guest international judge Sam Harrop, one of only 312 wine experts globally to hold the prestigious Master of Wine qualification. Judges blind taste each wine over the course of two days, using the same internationally recognised 20-point system as other leading wine competitions. Gold, silver and bronze medals are awarded as well as a Champion Red, White and Bubbles. Entries close 20th June with further information available at www. wineshow.co.nz n

IPA JOINS RANGE LION has released Little Creatures Indian Pale Ale in New Zealand. Featuring fresh hop cones, Little Creature’s IPA combines passionfruit and grapefruit aromas with a bitter finish and joins the brand’s existing range of Pale Ale, Pilsner and Rogers. Lion’s craft beer manager Mark Scown says at 6.4% Little Creatures fans will definitely notice a considerable step up in flavour. n

TWENTY TWENTY RELEASED LION has launched a limited release India Pale Ale under its Mac’s label called Twenty Twenty. Mac’s new IPA builds on the brand’s hugely successful limited release of Cascade Parade last year and is brewed using a mixture of Nelson Sauvin and Cascade Hops. Available in 568ml bottles, Twenty Twenty has a 5.4% ABV and a unique flavour profile with notes of citrus, passionfruit and sauvignon grapes. n

WASTEWATER USED FOR IRRIGATION

A KIWI designed water filtration system which can eliminate wastewater could save New Zealand wineries thousands of dollars annually and is already being championed by the dairy industry. Created by Scott Biotechnologies and Allan Scott winemaker Matt Elrick, the new waste management process is designed to rapidly filter the winery’s waste fluids allowing the clean, odourless by-product to be reused as irrigation for the vines. The prototype came about after Elrick became frustrated with expensive traditional wastewater disposal methods used by the Allan Scott’s winery. Elrick says New Zealand wineries

have already tried and failed to come up with a better system for dealing with wastewater at peak times, often returning to the septic tank system. “With a traditional tank system wastewater settles in a tank, overflows into the next tank, settles there then overflows into the next tank. This means at harvest there often isn’t enough settling time so solids and nutrients tend to jump through the systems faster than the system needs to allow it to be treated, that means you end up with a pretty bad smell,” he says. The new system sees wastewater pumped through a spin separator, using a cannon to create a centrifugal force and allow clean water to be ejected out of the top and sludge to be forced out of the bottom. “The clear water goes direct to a discharge tank where it is further filtered and discharged via drip irrigation line onto the vineyard. The remaining sludge waste solids goes through a series of chambers where it can be easily scattered around the vineyard to release its nutrients,” he says. The system is capable of rapidly processing the waste product from a winery’s entire harvest without any delay or loss of production efficiency. “Excess waste production is a huge issue for New Zealand’s horticultural and agricultural industries. In addition to making us more environmentally friendly, this cost reduction technology will also make us more competitive internationally.” says Elrick. Elrick believes the technology has significant export potential for international wine producers as well as other industries which produce wastewater - including the growing dairy industry. n

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May 2014

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TWE TO REDUCE OVERHEADS TREASURY Wine Estates’ newly appointed CEO Michael Clarke has told the market the company may cut jobs and sell poorer performing brands in a bid to improve shareholder value. Clarke, who replaced exiting CEO David Dearie earlier this year, says the world’s biggest listed wine company must work to reduce overhead expenditure and reinvest these savings back into consumer and brand marketing. “Stronger, long-term relationships with our major customers and distributors are also required if we are to drive sustainable top line and margin growth over time; and there are structural changes to our

GUNN ESTATE RESERVE

HAWKES Bay’s exceptional 2013 vintage has produced the inaugural Gunn Estate Reserve Chardonnay, released in conjunction with the first anniversary of the label. Since its launch the Gunn Estate Reserve range has

brand prioritisation, cost base and infrastructure capacity that need to take place,” he says. Clarke has also come under pressure from analysts to divest the company’s troubled US division. Last year, under Dearie’s leadership the US division had to pay over US$160 million in writedowns, with TWE now paying distributors to destroy excess stock of low-priced wines. Clarke has said he has no plans to sell the US division and the market is part of the company’s future growth strategy. TWE’s extensive portfolio contains 83 brands including Penfolds, Wolf Blass and Rosemount. n

become the fifth largest selling $14 - $15 brand in New Zealand and has driven 15% growth for the brand as a whole over the past 12 months (Aztec TKA 16 March 2014). The Sacred Hill Wine Company’s newest offering is a full bodied, creamy chardonnay which is expected to improve in two to five years. n

HARRINGTON’S BUYS MATSON’S FAMILY owned Harrington’s Breweries has acquired Matson’s Brewery to become the nation’s largest independent brewery. Established in 1991, John Harrington’s ambition was to provide choice in a market dominated by the big two. More than 20 years later Harrington’s range has grown to over 30 beers and includes ciders, RTD’s and various non-alcoholic variants. The brewery has experienced large growth in the vibrant craft brewing market in recent times and has expanded its sales and distribution channels nationally and internationally into Australia, Asia and the US. The addition of Matson’s Brewery has increased Harrington’s brewing capacity to a potential 85,000 litres a week, doubled its bottling capacity, and expanded much needed warehousing and logistics facilities. “With such a diverse range of beers, increasing production of these to catch up to huge national demand is our natural goal initially. As a team we have put many ideas on hold for the last few years, now with increased production, this next chapter in our history will allow us to action some of the other exciting opportunities for Harrington’s,” says brewery owner/ operator Carl Harrington. With no sign of business slowing down plans are already in motion

to install a full-scale canning facility, further expansion of staff and upgrades of brewing tanks and equipment. n

NORTON TIES INTO INVIVO

Television chat show host Graham Norton has bought a small share in local winemaker Invivo. Co-founder Tim Lightbourne said Norton loved his New Zealand sav blanc and has been serving it to his guests. Profits from a Norton labelled sav blanc will be donated to the Elton John Aids Foundation and at the same time the brand is getting huge international exposure. n

Contact your Eurodell Sales Representative today to see our full range of Premium Delicatessen Products!

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May 2014

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SAFARI CHARCOAL AND BRIQUETTES, TOP QUALITY AND TOP SELLING PRODUCTS ARE NOW AVAILABLE AT GILMOURS FOR THE CONVENIENCE MARKET.

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STRONG KIWI PROMOTION IN SINGAPORE EXPO

THERE were plenty of New Zealanders amongst the 65,000 trade visitors at last month’s Food & Hotel Asia expo in Singapore. The four day biennial event covered over 1.2 million square feet and its 3200 exhibitors from 63 countries included a Trade & Enterprise New Zealand stand of around 20 suppliers well known to the foodservice industry.

lastword

Peter Mitchell

THE more I hear of the Commerce Commission investigation into the Countdown affair, the more I believe it’s going nowhere. A number of the complaints are certainly historical with some suppliers venting about things that happened years ago, others that came about through poor negotiating skills and odd complaint about category managers who got a little too smart mouthed – but not illegally so. The Australian Woolworths attitude may well have rubbed off in the manner of some approaches but the company is clever enough to have knocked that on the head. It certainly has been the talking point of the industry but of course Shane Jones stirred with a supplier whispering in his ear and taking the whole process down the wrong track. What it will prompt is some regulatory response and perhaps a code of practice but by the time that comes about, the bird will have long flown and the niceties will be back in place.

current or retired and are members of the company’s 25 year club. Foodstuffs has a similar group and of course our own Review Publishing, now 91 years old and in the same ownership for the past 42 years also has a single employee who has been here since the start – me. I see we also have fresh competition in the market shortly – but of course they’re Australian-owned. OF non-food interest, I was invited to a Toshiba product launch the other day where the Japanese company introduced a new photo-copier here. Nothing surprising about that except that the printed paper can be recycled through a small ancilliary machine and wiped clean for reuse up to eight or nine times offering an 80% reduction in paper usage. Obviously it uses a special copying ink but can erase up to 30 sheets a minute.

WITH the Super 15 Rugby season in full swing, there’s a lot of talk about guts. But a mate of mine reckons that guts is arriving home late after a night out with the boys and being met at the door by your wide with a broom in her hands. And then having the guts to ask:”Are you still cleaning or are you flying somewhere?”

WITH the high in-store emphasis on wine retailing, supermarkets still need to give advice to consumers. Of course the secret of enjoying a good wine is to open the bottle and allow it to breathe. If it doesn’t look like its breathing, give it mouth to mouth. And we all know that wine improves with age – the older I get the better I like it.

COUNTDOWN has 18,000 team members around the country but did you know that 700 of them are either

SOME smart grocery operator drew my attention to restaurants and cafes adding a 10 or 15% service

May 2014

charge on public holidays and wondered whether it might be practicable in the grocery trade. If the hospitality trade can get away with it, why not grocery! I JUST can’t believe that the two retail players in the local market are continuing to open new stores in a market that’s hardly growing population-wise. The worry of it all is that some of the stores are going to take a long time to make a real dollar and at the same time are tending to cannibalise those established shops nearby. It does bring the overall average catchment to under 12,000 per store although it varies up and down depending on the location and that doesn’t seem strong enough to justify the magnificent edifices that are being built. No doubt we are creating supermarkets that are the equal or better than those in most other countries but the location competition is out of hand. And I guess that suppliers will be paying the piper to foot the promotional and margin shortfall bills. AND for a complaint for the month. How come that grocery has to have all the content detail on everything it sells when restaurants and cafes don’t have to provide anything. Who knows what we are eating in those establishments.

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