SupermarketNews Magazine | May 2020

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10.95

May 2020 • Vol. 13 No. 5

Time for shopper marketers to step up to the plate (see page 12)

NEW

PLANT BASED ON-THE-GO SNACKING SOLUTION SIMPLY OPEN AND EAT

PUnique Innovation PAttract new shoppers PDrive Category Growth Healthy snacking has nEver been easier.... or tastier.

Try new edgell snack time.

editorialcomment

ATTENTION GROCERY SUPPLIERS

SHOPPING STRESS EASED Sarah Mitchell Editorial Director

sarah@reviewmags.com

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he immediate threat of getting the virus from anyone and anything has tapered off, will grocery stores be filled with people once again?

Going to do the weekly supermarket shop pre-COVID was a scheduled-in chore (post COVID-19 a good or bad chore depending on how risky you felt it was). It possibly was a time for parents to get out of the house, others to have a quick browse at new products and sometimes, just to have a moment to yourself. There are, of course, those that love going grocery shopping as a social activity too.

With lockdown and the various alert levels came new rules surrounding how customers shopped and a limitation was put on how many people were allowed in-store at any given time, and those waiting to go in, spaced out in a line (in some cases huge marquees were installed to shelter customers from the weather).

A few stores set up virtual queues so customers could wait in their cars and were notified when it was their turn.

This, however, only happens when you register. But what if you entered the store address that you wanted to

go to and when you came within a kilometre of the store, it placed you in a virtual queue. This is the format of a new app by David Chura in the USA called Safe Queue. A unique QR code is then sent to the user along with updates about their place in the line and the same QR code is presented to the store personnel on entry who can scan it for authenticity.

Despite these features and apps that have been created to ease the stress of shopping during the crisis, it still highlights a certain inequality. Those with smartphones and devices are able to wait in the comfort of their own car, while those without have to physically wait in line. So how is the order of the line determined to be fair?

For some online shopping will be the only way in future, well, people have been saying that since it was e-commerce was launched all those years ago, and yet only a small percentage of people utilised the service in pre COVID-19 times.

Post COVID-19 customers that were not as tech-savvy, those that didn’t want to wait up until midnight to secure a delivery spot or click and collect time, those that didn’t have access to the internet or computer, or simply those that lived in remote areas where online wasn’t even on offer – everyone focused on getting their groceries, in fact, that is pretty much all anyone did for the first four weeks of lockdown. Making sure that there was an endless supply of food in the cupboard – a veritable pandemic pantry.

This, in turn, put incredible pressure on supermarkets, on their teams and their infrastructure. In the end, it all boiled down to people, the workers, the frontline heroes and behind the scenes worker bees.

Employees from around the country who selflessly worked through the crisis putting themselves not only at risk of contracting the virus, but also having often to face verbal abuse from the shoppers they were trying to help.

For some, ordering online for delivery or click and collect was a novelty and they will happily return to shopping in-store to avoid the always disappointing out of stocks and substitutes. For others, they may have found a new way to shop, a foodbox or home delivery that is outside of the supermarket experience and depending on their experience and the convenience will continue to do so. For those who already were using the various e-commerce platforms, they too will continue to shop the way they prefer, providing that not too many others are making delivery and click and collect times disappear before their eyes, voiding the service of any convenience.

And for the rest of the shoppers, with many shops and restaurants still closed or just slowly finding their feet, the supermarket will always be a special outing that is looked forward to each week.

Enjoy the issue.

departments

04 Rising Star 16 Store of the Month 18 What's New 20 FGC Column

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SupermarketNews is published under license. Please direct all enquiries and correspondence to SupermarketNews. The opinions and material published in this edition of SupermarketNews are not necessarily those of the publishers unless specifically stated.

All material in this publication is copyright and may only be reproduced with the consent of the publisher. Copyright 2020

CHAIRMAN PUBLISHER GENERAL MANAGER EDITORIAL DIRECTOR EDITOR ADVERTISING SALES

SENIOR DESIGNER GRAPHIC DESIGNER

ISSN No.

PETER MITCHELL Tania Walters, tania@reviewmags.com Kieran Mitchell, kieran@reviewmags.com Sarah Mitchell, sarah@reviewmags.com Caitlan Mitchell, caitlan@reviewmags.com Felicity-Anne Flack, felicity@reviewmags.com Harsha Thanthriwatte, harsha@reviewmags.com Raymund Sarmiento, raymund@reviewmags.com Debby Wei, debby@reviewmags.com

1173-3365

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

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food& grocery COUNCIL NEW ZEALAND

The Food and Grocery Council is an industry association for grocery suppliers providing members networking, events, industry information and strong advocacy.

Contact us for information on the benefits of membership: katherine.rich@fgc.org.nz • Networking • Industry Updates • Conference and Events • Education and Training • Advocacy and Law Reform

food& grocery COUNCIL NEW ZEALAND

www.fgc.org.nz

The NEW ZEALAND BEVERAGE COUNCIL is an industry association whose members cover all aspects of the non-alcoholic beverage market both in New Zealand and the export markets.

The Council members are spread throughout New Zealand and come together annually for a conference that covers industry issues and is addressed by international speakers. The organisation monitors product quality, sets standards for the industry and runs national competitions and awards.

THE NEW ZEALAND BEVERAGE COUNCIL (NZBC) P.O. Box 47, AUCKLAND 1140, New Zealand.

Email: info@nzbc.nz Phone: +64 9 309 6100 DDI: +64 9 302 9932

March 2020

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DAVID TUISAULA Grocery Manager New World City Centre, Dunedin

Grocery is in the blood for grocery manager David Tuisaula, whose parents owned the local Four Square in Whangarei. Growing up, Tuisaula would help out around the store and learnt first-hand what it was like to run a store. “I have distinct memories of taking the car to Gilmours to pick up stock at the end of the night,” said Tuisaula.

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fter finishing high school, he moved to Dunedin to study and decided to stay, alongside his wife Emma, two boys and a baby due in July.

“I graduated with a business degree from the University of Otago, worked a variety of roles part time while studying but really the on the job experience helped me out the most. My studies gave me a good understanding of business and marketing on a global level, but you just can’t beat getting stuck in, doing the work on the floor and a good amount of trial and error.”

As a child, Tuisaula’s dream job was to be a policeman, being able to help those in need, particularly those on the streets causing trouble. Today, he is helping the community keep their pantries and fridges well stocked at Dunedin’s New World City Centre. “I find that sometimes it’s the small things that are the most rewarding like helping customers being able to locate products they request. The smaller things can often be overlooked but overall, they make up something really big, our community culture.”

He hopes to inspire the team and create a strong team culture also. “I want to be as approachable as possible and great communication is a good starting point to ensure it then translates across to our

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customers and their overall shopping experience.

No matter what business you are in, it’s all about the people, whether it be your own team or your customers.”

One of Tuisaula’s strengths is his people skills and believes that to be able to engage with a variety of people from all walks of life is a great skill to have.

“My father always told me that it is who you know, not necessarily what you know in life. I may not be the smartest cookie, and was never a star at school or university, but have found myself able to relate to people, understand them and work alongside them.”

As head boy at his high school back in Whangarei, he looked up to his Year 13 Dean as someone who encouraged him and other students to be empathetic and understanding toward people and their situations.

“He told me that by understanding people and their situations, we can make informed decisions. He was firm but fair and I admired his attitude to his work and his students.”

Tuisaula also acknowledges one of his colleagues who has continued to inspire him to do things to the best of his ability and take pride in what he does, not only in his work but also his life. “Every day, she displays this in her work and it doesn’t just inspire me to be better, but our whole team.” n

I find that sometimes it’s the small things that are the most rewarding like helping customers being able to locate products they request.

GET THE NEWS STRAIGHT TO YOUR INBOX

wherever you are Sign up to our FREE e-newsletter today

and catch up when you want at www.supermarketnews.co.nz May 2020

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COMMITTED TO HONESTY AND TRANSPARENCY Trade Aid is the country’s largest fair trade organisation, and has built a reputation as a trusted and effective NZ owned fair trade business since it started trading in Christchurch in 1973.

As a pioneering social enterprise, Trade Aid gives New Zealand consumers access to organically grown foods, ethically sourced from smallscale artisans and farmers in Africa, Asia, Latin America, Palestine and the Pacific.

With growing consumer interest in fair trade and Kiwis demanding to know where their food comes from, Trade Aid has grown to become importer, retailer, wholesaler and manufacturer, committed to honesty and transparency in all their dealings and expanding their offering to retail outlets, cafes, restaurants, supermarkets, workplaces and manufacturers across New Zealand.

In 2014 Trade Aid began to manufacture its own fair trade chocolate, using the finest organic ingredients from partnerships formed

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in the Dominican Republic, Ecuador, Peru and Paraguay. They opened the Sweet Justice Chocolate Factory in central Christchurch, and became the world's first fair trade organisation to manufacture 100 percent fair trade organic chocolate. Trade Aid continues to make a range of organic chocolate products and is driving Organic Chocolate Block sales across a number of New Zealand supermarket retailers, up 68 percent MAT in the latest Nielson QTR data 29/03/20.

The retail range includes delicious bars

and blocks, sustainably wrapped in home-compostable packaging, cocoadusted nuts for gifting and chocolate drops in bulk, supplying food service and manufacturers. Trade Aid chocolate is certified organic, gluten free and vegan certified. Trade Aid’s latest offering, the new 40 percent Cocoa Organic Fair Trade Milk Hazelnut chocolate, is an enticing combination of smooth, creamy milk chocolate and locally-grown, roasted hazelnut pieces.

Its food range includes organic drinking chocolate,

organic coffee and tea, as well as pantry staples like oils, grains, dried fruits and spices. Trade Aid is New Zealand’s largest supplier of fair trade green coffee beans, offering a varied range of premium coffee beans to commercial coffee roasters.

Trade Aid is accredited by the World Fair Trade Organization’s (WFTO) Guarantee System, the first international fair trade system that verifies organisations’ compliance through the entire supply chain. This principled approach provides certainty to farmers, enabling them to enhance their businesses, communities and lives through fair trade.

For more information contact Kyle Sutherland, account manager on 022 101 5953, kyle.sutherland@tradeaid.org.nz or visit tradeaid.org.nz. n

New Zealand is currently at Alert Level 4. For more information visit covid19.govt.nz/government-actions/covid-19-alert-level/

Q&A with Onfire Design founder, Sam Allan.

Q: How did you and the team handle the lockdown?

in the USA and a Red Dot Award in Germany. We also won awards in China, Australia and the UK and ranked 8th in the Top 50 most creative agencies judged by the World Brand Design Society. Awards are nice, but as a team we are more driven by creating design that sells. This is what gets you repeat business and the fact we have great client retention says a lot about how operate.

A: We were fortunate. Everybody was well set up at home to work remotely and our clients kept us very busy. We even enjoyed a bit of fun competing to see who could come up with the most outrageous costume in some of our Zoom meetings. You can check it out on my LinkedIn page. But now we’re back and it’s full steam ahead!

Q: You were NZ’s most internationally awarded design agency last year. As a relatively young team, was that a surprise?

A: To be honest, I have complete faith in the design team lead by Creative Director Matt Gantham.

Both Matt and I learnt the ropes in the UK at its peak and we’ve been building here in Auckland for 15 years. Also, we’re seeing clients make a shift away from older agencies to more nimble teams like Onfire that offer better returns.

Q: What were some of those awards in 2019?

A: It was great to receive recognition from our peers. It showed we are producing quality work across multiple disciplines. We won Gold and Bronze in the Dieline Awards

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Q: What’s the secret?

A: For FMCG, disruption on the shelf through visual design is critical. A good example of this is the work we’ve been doing with Hubbards cereals as well as the Tasti range of snack foods. However, while both brands stand out against their competitors, we never underestimate the importance of appetite appeal at the POS in food aisles.

Q: Sustainability is a big issue. How is that affecting packaging?

A: Reduce, reuse, recycle is the mantra. Both overseas, and here in NZ, more and more importance is being placed on sustainable packaging. Onfire is working with clients to develop and implement suitable options where possible.

Unfortunately, substrate options are limited in NZ so we have had to look off-shore for better solutions. But in the next few years we will see an increase in locally made options.

Q: Are there sustainable solutions you’re working with clients on now?

A: Sure, we’ve developed solutions using recycled cardboard and ecofriendly substrates for pouches.

But some NZ businesses are really leading the way. One of our clients, Pharmapac, has energy and water efficiencies built into their manufacturing plant and a regrind and recycling facility onsite allows them to process post manufacturing recyclate for reuse.

Q: If any of our readers want to get in touch, where can they find you Sam?

A: Just come to the beach! We’re at Takapuna and also have an office in Sydney. We’re always looking to build new partnerships in the New Zealand grocery sector. Just call 09 480 2036 or 021 608 204 and ask for me, Sam Allan! www.weareonfire.co.nz

PARBAKED PERFECTION

Premium NZ Butter based pastry with superior functionality.

www.alliedpinnacle.com April 2020

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We want to thank our 39,000+ strong workforce, suppliers, manufacturers and other partners who have worked tirelessly over the past month to keep New Zealand fed and our people and customers safe.

We cannot deliver for New Zealanders alone and we’ve all played an important role looking after one another.

The team at Foodstuffs thanks you for your hard work and dedication.

Time for Shopper Marketers to step up to the plate "Level 2 has arrived and most of retail will be in its initial phase of re-opening of their physical stores. In the world of Grocery, stores have been open for all but one of the 49 days we have been in COVID Level 3 & 4.

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hose 49 days have seen significant restrictions and controls and no more than in the Grocery shopping environment; shoppers wearing masks and gloves, stores queuing shoppers outside the store to minimise numbers and the introduction of one-way systems for aisles to manage social distancing.

How are shopper reacting to these changes and the broader messaging and impacts of the COVID lockdown?

Research has shown, as encouraged, shoppers are planning their store visits more than ever before.

The shopping list has re-emerged as the must have accessory. “Smart, Savvy and Saving� seems to be emerging as shopper’s mantra, driven by a focus on how they spend their current income and foresee for

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the future. Grocery shopping has never been more functional and transactional; fun, spontaneity and the pleasure of discovering new and exciting offers has been virtually banned!

So, the question is. What should Shopper Marketers be focused on right now?

1) Control your own shopper assets As shopper marketing is either restricted or minimised, stand back and re-assess the assets that you own as a business. Is your packaging working hard? Does your shelf ready packaging (SRP) deliver a shopper message that enhances the shopper’s experience or navigation. As a Shopper Marketer you might not own these assets but their role in the shopping environment you lead is key. Take action now and look again at these assets with a critical eye.

2) Seek to understand your specific shoppers Its time to brush off all your shopper research and reassess your understanding based on the economy and category you compete in. Will shoppers seek value offers? Will our products be seen as an affordable luxury in difficult times? Does research need to be refreshed to maximise future activity? Understanding your shoppers is key to deliver winning activations.

marketing approach? Which pre-store tools are you supporting and are you confident that your message grabs attention / influences your shopper when planning their shop?

It’s time to re-assess which retailer marketing tools you use and potentially try something new. I assure you the retailer’s shopper teams will be happy to catch up and motivated to prove their tools potential and return. Make it work for you.

Neill Arnold Arnold Category Consulting

4) Raise the bar on your in-store When you decide to activate in store, ensure it’s the best activation you can deliver. Challenge your creative teams to really step up and deliver in-store solutions that demand shopper’s attention. Just doing the same as before is unlikely to deliver the results you expect. Now is the time to raise the bar and look to innovate, surprise and delight.

5) Activation is a team game

All my Shopper Marketing training sessions ask; How will you inspire others to bring your campaign to life?

Shopper Marketing is a team sport and you cannot do it alone. Post lockdown, your field sales team may have been off the road or significantly re-focused on merchandising and supply chain management.

Now is the time to re-engage and inspire them to execute with excellence. Create excite about the Get on the shopping list. Simple to say, and easily campaign’s potential, be crystal clear on the shopper forgotten but currently vital. Shoppers are more behaviour you are impacting and provide selling planned and more cautious than at any time in the stories which can inspire your retailer partners to last 10 years. support your activation.

What proportion of shopper spend is targeted Shopping Market has a chance to come of age in Higgings Family FMCG 1 14/02/20 the10:03 AM pre-store? Mrs Have you aligned with thead.pdf consumer NZ market.

Step up to the plate and take the

3) Re-assess and refocus your shopper campaign spend

opportunity to deliver activations that engage and inspire shoppers and our retail partners alike. Based on my Level 2 store visits, the time to re-engage with shoppers is coming fast. Make sure your first campaign is the best campaign you can deliver and executed with excellence."

“Smart, Savvy and Saving” seems to be emerging as shopper’s mantra, driven by a focus on how they spend their current income and foresee for the future.

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SHOP LOCAL, ADVERTISE LOCAL – THE KEY TO POST-LOCKDOWN ECONOMIC SUCCESS Supermarkets, both large and small, and associated local retailers are now considered the country’s economic superheroes, giving citizens access to all the essential products required to stay at home and keep the spread of COVID-19 under control.

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ne interesting effect we have seen from lockdown is that people are shopping more locally for essentials. Whether this be the local diary, or the closest supermarket, we’ve all become more attuned to the offerings in our neighbourhood.

As the nation emerges from lockdown, this trend is expected to continue. Kiwis understand that local and small to medium sized businesses are the most at risk, with their owners’ jobs and livelihoods being directly affected. A focus on trying to buy New Zealand made, or shop in smaller retailers, is occurring with JCDecaux’s own research revealing that 75 percent of the population claims to have a strong desire to support Kiwi owned and operated small businesses and brands.

“Now in Stage 2 restrictions, with most businesses open and operating, our research reveals that Kiwis have clear intentions for commercial activity - 37 percent plan to splurge with some form of treat spending, while 89 percent plan to continue spending in a normal or reasoned capacity. After an extended period of isolation and forced saving, the trend is clear – people are ready to shop!” JCDecaux New Zealand Country Head, Mike Watkins, said.

This represents a strong opportunity for local brands to start rebuilding awareness and ensure they are top of mind and part of a consumer’s consideration set

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when they are out-and-about and ready to purchase.

In New Zealand, almost eight in 10 people (77 percent)* expect to hear from brands in the current environment.

It is a critical time for brand presence. Research shows it is vital for brands to continue advertising to ensure long-term growth and success during recessionary times and beyond.

During the last recession, 60 percent of brands that went ‘dark’ with no ad spend for six months saw brand use fall by 24 percent and brand image decline by 28 percent. Those that maintained or increased their ad spend, saw sales lift by 256 percent compared to those that did not^.

As some international brands cut back on advertising spend, it represents a great opportunity for smaller and local brands to efficiently increase their share of voice and capitalise on positive community sentiment towards small and medium sized businesses.

An added benefit is that it is generally a cost effective time to advertise.

JCDecaux believes people have been missing their

outdoor lives – including advertising – and there will be a heightened sense of attention to the outdoor environment once people start resuming ‘normal’ lives. Out-of-home advertising can help New Zealand brands and businesses to be top of mind as restrictions ease.

JCDecaux is committed to finding an effective advertising solution for any campaign, large or small. For brands and retailers wanting to run local campaigns, JCDecaux can help select a single, highimpact site in close proximity to a store location to raise awareness among people within the local community.

Please contact JCDecaux Account Director Brylin Nichols to discuss suitable opportunities for your business. n Sources: *Pure Profile study commissioned by DDB ** Dentsu Aegis network ^ Kantar Millward Brown ^^ Fiftyfive5

storeofthemonth

NEW WORLD CAMBRIDGE

LOGAN MCKENZIE AND FAMILY

Having been a Foodstuffs employee for many years, Logan McKenzie had the chance to own his own store in 2011. His training and professional development and ultimate goal of becoming an owner came after a conversation with a senior staff member at Foodstuffs around business ownership which is when he decided to go on the journey that has led him to where he is today. “I was really intrigued about the unique nature of working for a Co-Op and how owning a supermarket played a key role in the wider business,” said McKenzie.

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ver since setting his sights on becoming a supermarket owner, McKenzie has worked tirelessly to get there.

The town of Cambridge’s response to the recent level four lockdown has been a stand out for owner-operator of the local New World, Logan McKenzie. “We have been absolutely blown away in how our local community have supported us. It has been a challenging time for everyone in New Zealand but the way the community has rallied to get through the crisis together has been incredible.”

One of the biggest priorities for the industry of late has been adapting to all things COVID-19 and with every day being different, the team at New World Cambridge have been working hard to keep on top of it all. “Each day there are new and updated guidelines for everyone involved in the store including our customers so it has been very much a team effort to ensure that shelves are restocked, and our customers and staff continue to remain safe in-store.”

With many customers encouraged to shop online when they can has seen surges in demand for click and collect and delivery time slots. McKenzie believes that this will continue to be a popular option for customers as they grow confidence in e-commerce and enjoy the convenience of it. “I really am proud of how the team has come together to bring a positive can-do attitude and willingness to help our customers and each other.”

Over the past four years, McKenzie and his team have worked on their team spirit and its values as a supermarket with an overall goal to create a positive environment for all of its staff which translates to the customers. This is something that McKenzie is passionate about and prides himself and his store on.

“I believe that our customers’ in-store experience is

incredibly important. If our customers are not happy, then the store would not be successful. Everything we do in-store is to help our customers have a better shopping experience, from the time they arrive to when the get home.”

McKenzie believes that the store’s biggest point of difference lies in his team. “Many of our customers and staff are on a first name basis and over the years we have been fortunate enough to forge a relationship with many of our loyal customers, which is very special.”

Although the grocery industry has seen huge growth in sales over the past few months, there are other opportunities that are important to note that have grown alongside this. “Pre-COVID I would have said the biggest growth opportunities would have been in organic and better-for-you ranges as well as food-to-go/convenience options. Right now, the focus has been on essential grocery products and keeping the country fed through financially uncertain and challenging times. A focus area for our store is to maintain and limit out of stocks in-store. Keeping up with promotions and having the products that our customers need on shelf remains a priority. I know that Cambridge is a strong community that will recover quickly, whatever the new normal will look like, which will allow us to pivot from focussing solely on maintenance and more towards improving and developing the store.”

Another growth opportunity in the market when it comes to categories is meal solutions and grocery’s online offering. “New Zealanders will most likely be eating more meals at home with a renewed focus and heightened awareness for their health and safety and will take a closer look at their budgets.” The food to go category is a priority for the store as a solution to

its smaller physical footprint and narrowing down on what consumers are wanting and catering to that need. “As a store, we also like to keep an eye out for new products in the market, allowing us to give a wider variety of choice to our customers.”

When McKenzie took over ownership, the store was part way through a renovation. This was a huge task however it was the launching pad to a better store environment and shopping experience for customers.

Despite a resurgence in customers’ want to support local, a trend that has always been in Kiwis’ DNA, McKenzie has always felt strongly about supporting

Footprint 1600 m2

120 staff

Selling Area 800 m2

12,500 SKUs

Checkouts: 8 regular

Opening Date: 1967

Trading Hours: 7am - 9pm 7 days

Owners: Logan McKenzie

local suppliers. “Some of our local suppliers include Boyd’s Asparagus, Kane’s Strawberries, Monavale Blueberries, and Lillies by Blewden to name a few.”

Aside from the pride McKenzie takes in his team and store, he is also proud to have one of the highest waste diversion rates amongst New World’s nationwide, diverting over 90 percent of all store waste away from landfill.

Looking ahead, McKenzie hopes to be able to expand the store to offer his local community and customers a wider range of products and a shopping experience like no other. n

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Solid New Line Up

Snack Time

Wholesome, delicious and certified organic – Only Organic is the simple choice for nutritionally balanced, farm to plate food that tastes great – and is great for growing baby’s next steps with solids. The family owned NZ-made business has introduced four new products to its line-up to include Only Organic 4+ Months Prune & Apple, 6+ Months Prune, Pear & Purple Carrot, Chicken, Sweetcorn & Brown Rice, and 8+ Months Chicken, Cheddar Cheese & Cauliflower Rice. Only Organic have spent the past 20 years leading and innovating the organic baby food category and are proud to be the number one selling baby food brand in New Zealand! Only Organic continually engage with Kiwi mums to come up with great new products based on the feedback of parents.

Introducing the new Edgell Snack Time range, a convenient, healthy on-thego snacking solution. This unique innovation is perfectly suited for the many consumers who are wanting to incorporate more plant-based products into their diets. Available in four delicious flavours: Chick Peas with Olive Oil and Sea Salt, Chick Peas with Zesty Vinaigrette, Chick Peas with Olive Oil, Garlic and Rosemary and Red Kidney Beans with Chilli and Olive Oil. Chick Peas provide a source of protein and fibre and Red Kidney Beans fibre. This range really has something for everyone, Chick Peas or Red Kidney beans, Oil or no oil, flavour or simply seasoned. These products are pre-cooked and lightly seasoned, there is no need to drain so are ready to be eaten straight from the can, or easily added to a salad for an extra protein or fibre boost. For more information contact your Simplot representative.

Cool Sensation

Introducing NEW Tic Tac range - Tic Tac X-Freeze - an intense, long-lasting mint that is 99.8% sugar-free.

The Tic Tac X-Freeze taste experience is driven by unique cooling crystals which provides the intense cooling sensation.

The Tic Tac X-Freeze mint is bigger than a standard-sized Tic Tac and comes in a newly designed, convenient packet. Available in 2 flavours (Eucalyptus Mint and Spearmint). Feel the Freeze! Distributed by DKSH Services New Zealand, for more information, email cs.servicesnz@dksh.com or contact 09 475 0248.

Untamed, Natural Wildness

Living with eczema, acute-dermatitis and psoriasis can seem impossible. The team at Austere Skin believe that you shouldn’t be afraid to try new products and that living with skin conditions shouldn’t impact your daily life. Although their products can’t cure your allergies or fix your epidermis, it can help to manage, exfoliate, hydrate and showcase your best skin, without the reaction.

The Revive Mask is a unique blend of Chia and Hazelnut Oil, Chamomile, Aloe Vera and Apricot Seeds that will gently polish away dry skin cells and pack intense hydration into the skin revealing its natural glow.

The high Vitamin E content in Hazelnut Oil and Aloe Vera helps increase hydration in the outermost layer of the skin and by keeping skin hydrated, vitamin E also helps improve skin elasticity, making it look firm and supple.

The zinc and B vitamins present in Chia Seed Oil levels out the oils in skin, prevents scarring and reduces redness which is often present with sensitive skin. The Revive Mask is 100 percent natural, free from nasties, vegan, and made in New Zealand.

For more information contact morgan@austere.co.nz, call 03 922 9845 or visit www.austere.co.nz.

After Dinner Mint

Clipper Tea has launched Organic After Dinner Mints.

The cool, menthol taste of peppermint combines superbly with the natural sweetness of spearmint and the subtle, spicy body of fennel and ginger to provide a truly delicious and refreshing 100% organic infusion. Perfect for after dinner. Available as plastic-free ‘string & tag’ teabags.

Clipper Teas contain only natural ingredients and it was the world’s first tea company to switch to plant-based, biodegradable, non-GM and unbleached tea bags.

With a wide range of Organic Fair Trade Black and Green Teas and delicious organic herbal infusions, Clipper Teas are perfect for today’s conscious consumers. Natural, fair and delicious.

Chantal Organics is the exclusive nationwide distributor for Clipper Teas in New Zealand. For further details, please contact sales@chantal.co.nz or 0800 254 766.

Home-Style Feel

Drink it hot or cold – Simply Squeezed Lemon, Honey and Ginger fruit drink is a good source of Vitamin C for immune system support and contains no added colours, juice concentrates or added flavours, making it the perfect winter sidekick.

Frucor Suntory Brand Director Allison Yorston said the Simply Squeezed Lemon, Honey and Ginger fruit drink has a strong home-style feel to it.

“Our new fruit drink has been created using Honeydew Honey from the Beech Forests in the South Island, and East Coast Lemons, squeezed in Hawke’s Bay – as the added lemon pulp gives it a really natural flavour,” said Yorston.

“We’ve also added apple juice to the fruit drink to give a hint of sweetness.”

Simply Squeezed Lemon, Honey and Ginger fruit drink comes in 800ml bottles and is available to supermarkets nationwide.

Delicious Distraction

Cadbury Dairy Milk Marble is here – a delicious distraction that is creamy on the outside, with a smooth nuttiness on the inside. It’s the ultimate decadent treat.“Some may remember CADBURY DAIRY MILK MARBLE from years ago and we are incredibly excited to be bringing it back to New Zealand.

This iconic block is the perfect addition to our range and is the first to feature our fresh new look,” said Will Papesch of Cadbury New Zealand.Marble will hit shelves with refreshed packaging which includes a redrawn logo, new iconography and typography, making the look and feel more natural. The revitalisation of the Cadbury logo drew inspiration from the hand of founder John Cadbury himself, to create a beautifully crafted signature with a more contemporary feel.

Exciting New Chapter

Wither Hills has released its first-ever Syrah and Merlot varietals, expanding its range and marking an exciting new chapter for the award-winning New Zealand brand.

The new Merlot 2018 and Syrah 2018 are from Hawke’s Bay rather than Marlborough, the brand’s spiritual home, explains Matt Large, Head Winemaker at Wither Hills.

“While we’ve experimented with a few different wines in small batches over the years, it’s clear that the Hawke’s Bay is the best region for creating Merlots and Syrahs of depth and richness. This is thanks to the warmer climate which allows the fruit to ripen more fully, really bringing out the flavours in the wine,” said Large.

“We’ve created a warmly textured Merlot, matured under different oak regimes over 18 months to bring out vibrant dark plum flavours, with nuances of cigar box and chocolate. To create our Syrah, we gently de-stem and ferment the fruit before an extended maceration period to soften the tannins, resulting in a varietal packed with notes of dark fruit, pepper and spice.”

HYDRATED HANDS

Health Basics have released a new Anti-Bacterial Hand Sanitiser. The new product is made in New Zealand and kills 99.99% of germs and is quick drying.

It contains added moisturisers including Aloe Vera to keep hands hydrated. A perfect 140ml size for the car, handbag, house, office desk or take it with you wherever you go.

For more information contact 09 279 7979 or visit www.api.net.nz.

Daily Dose The team at Culture are on a mission to create delicious living food with a daily dose of pre-and probiotics. Better yet, it’s made fresh by you, without any preservatives or artificial colours or flavours.

Culture is a new make-at-home powdered yoghurt blend. With 500 billion live active cultures per serve, consumers can now enjoy optimal level of probiotics made fresh in their homes.

Yoghurt is a wholesome food that the whole family can enjoy in multiple ways. To enjoy the benefits that yoghurt typically provides, there needs live active cultures to be present. Cultures have a short life span so making it fresh in consumers’ own homes, the live active cultures are at their optimal level.

Culture uses quality ingredients including (what they believe to be) the best milk powder in NZ from Westland! Its products are created here in New Zealand using local ingredients where possible. Natural, fresh, flavoursome – NZ goodness!

The new range includes six variants: Unsweetened Natural, Vanilla Bean, Mango + Turmeric, Manuka Honey, Coconut + Cacao and Raspberry + Rosehip

Odour Destroying Technology

When customers talk, essano listens, that’s why they have created a new natural deodorant following a number of customer requests. Dedicated to creating natural skin, hair and body products that care for people and the planet, the new roll-on deodorant is not only effective, it allows the body to naturally sweat without any odour, and is better for the environment.

“Once our team finalised the formula, we could have launched using virgin plastic imported from China, instead we decided to spend more time and money to work with a NZ supplier and be the first deodorant in NZ to use 100 percent recycled plastic,” said Shane Young, co-founder of essano.

“After trialling natural ingredients from around the world, essano’s on-site chemists discovered four new-technology, natural-actives proven to effectively destroy and inhibit the bacteria that cause odours. We then put it to the test with women from around NZ.” In the battle to be free from body odour, it’s important to note that it’s not actually sweat that makes the smell; it’s when sweat comes into contact with the natural bacteria on skin.

Up until now, some natural deodorants have just tried to mask bad smells with another stronger (often polarising) smell, or used baking soda (bicarbonate soda) to dry the skin.

On the other hand, essano has used exciting new technology that works by gently neutralising the odour causing bacteria under your arms, for up to 8 hours.

Available in three variants: Lily Flower & Chamomile, Mandarin & Aloe Vera and Fragrance-Free.

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THE RECESSIONARY MINDSET The food and grocery industry has just experienced a period like no other. The eight or so weeks leading to our exit from COVID-19 Alert Level 3 have been a time of pressure not seen since the days of rationing during the Great Depression and World War II.

Katherine Rich

Chief Executive NZ Food & Grocery Council

As demand in March reached a peak seen only on our busiest Christmas Eve, everyone was impacted: suppliers, supply chain, merchandisers, supermarkets and shops. Some were caught short, but others dusted off their pandemic plans and put them into effect to deal with the sudden rush on toilet paper and sanitiser, and it seemed the world was pretty close to going mad.

It’s a huge shout-out to everyone in the industry that there were no serious gaps in supply. It was a great joint effort, especially with some store staff having to deal with disgusting treatment by some shoppers.

Thankfully, in terms of challenges to the supply chain, the worst seems to be behind us, but the final impact of the recessionary wave hitting New Zealand is yet to be felt. Whether there will be sustained changes in how people shop after COVID-19 remains to be seen.

So what can the industry learn from all this?

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Sales data shows in the weeks before the Level 4 lockdown, people started stockpiling food and other essentials, and in the week the lockdown was announced they spent 70% more on groceries than at the same time last year. Remember those social media posts of bedrooms filled with toilet paper as shelves for that and hand sanitiser were emptied?

Data collected by retail research company Iri shows consumers spent 63% more on food and 83% more on non-food that week than they did in the same week last year.

Five weeks later – one week into Level 3 – and all categories (except baby food, nappies etc), were still trading well above last year. Total grocery was up 18%, with food up 21% and non-food 7%. Frozen food was up 41%, baking and cooking goods 25%, and beverages and dairy 20%.

Though this trend will decrease as restaurants and fast-food outlets re-open, sales are expected to still be higher than pre-COVID as more people cook and eat at home.

The lockdown also saw huge demand on contactless shopping options such as online and click & collect. Both supermarket chains registered a huge jump in demand for online ordering and delivery, with delays of up to two weeks in some areas.

Foodstuffs responded by creating an “essential box” of groceries for elderly and vulnerable people, while Countdown launched an e-store to help fill orders.

It seems all these trends will catch on and take hold

for some time.

A survey by Iri during the lockdown showed 53% of consumers made fewer trips to stock up and limit visits, 31% stocked up on pantry staples and essentials more than before, 17% bought larger pack sizes because they were more economical, and 14% bought more private label to save money.

Interestingly, nearly half said they were buying enough groceries for two weeks, 8% for 3-4 weeks, and 2% for more than four weeks. Some 31% expected to keep their pantries well stocked with staple foods, 34% would make fewer trips to the supermarket, and 16% said they would keep buying larger packs. Some 24% said they would permanently buy groceries from online and click & collect and subscription-box channels.

These trends are also happening in overseas markets and seem likely to be part of the new way of doing things, at least for the short term.

Trends are also emerging around price. In times of economic crisis, people don’t have the income to eat out, and the Iri data shows consumers are already moving into what they call a “recessionary mindset” – where there’s a need for more care with expenditure and a greater focus on price as it becomes harder to balance household income with expenditure.

The next year or so is shaping to be disruptive and challenging. If your company is not a member of FGC then perhaps now is the time to talk to us about how we can help you navigate what’s ahead.

A BALANCED DEBATE ABOUT PACKAGING Sharon Humphreys Executive Director, Packaging Council of New Zealand

"2020 was always destined to be a year of change - but who could possibly have predicted just how much change would steam roller across our lives mere months into the new year.

Daily lexicon changed overnight with “bubbles” and “clusters” taking on new meanings; “social distancing” and, my personal favourite, “driveway drinks” became our new normal behaviour; the acronym PPE was the talking point for people who prior had probably never actually considered what PPE even was, much less what the acronym actually stood for and; the practise of hand-washing and sanitising took on evangelical status.

Exactly who qualified as an essential service was the subject of weeks of debate and consumers made their own decisions as to what they considered essential goods – no matter how bizarre some of those choices turned out to be!

A visit to the supermarket became an activity which we looked forward to and dreaded in equal measures. We all learned really quickly to appreciate the heroes who stocked the shelves long into the night and then faced the public everyday – risking their own health when we had no idea if there was any community transfer of the virus.

We also learned during these times to appreciate packaged goods.

It would be in poor taste to celebrate the changing fortunes of packaging’s perception on the back of the

INTEGRATION

devastating impacts of Covid-19 – but equally I would be remiss in my position as an advocate for the packaging industry not to give a shout out to those heroes who kept the factory lights on, ensuring producers could get the packaging they needed, keeping essential goods available every day, for everybody.

As to be expected from the dynamic packaging industry, businesses met challenges head-on and acted-on opportunities as they presented. Packaging New Zealand members, like so many others, have seen parts of their business disappear overnight. But where, and when, the demand came in they responded, making new products entirely such as PPE, or providing packaging for completely new product lines – the need for packaging for hand sanitiser went stratospheric!

Confronting the realities of international trade also came into stark focus. Businesses who had overlooked local manufacture in favour of overseas suppliers were caught out by the fragility of relying on international supply chains. The longer-term implications of this for our domestic industries is exciting. “Shop local”, which before Covid tended to be more commonly associated with espousing environmental benefits, is now looking more like mainstream common sense. Packaging New Zealand members are building local relationships previously unobtainable, demonstrating the agility and quality of local manufacturing and generating a muchneeded boost for our local industry.

And on that subject of environmental concerns.

To the alarm of those who would see single-use plastic packaging eliminated – plastic packaging went from demon to hero during the crisis. A reflection perhaps that when faced with a choice between the perceived safety of packaged goods versus unpackaged goods, or indeed product or no product, consumers rightly consider their needs first, and if the only choice is wrapped in plastic – so be it. Of course, the real world is somewhat more nuanced. Sustainability efforts have not

HQ MANAGEMENT

been abandoned – I know this from the many members I have spoken to during this time. But neither have the fundamental challenges; achieving change at scale takes time; technology has not yet delivered on the volume and variety of alternative materials which can deliver across all the qualities of ‘traditional’ plastic packaging and; where alternative materials are scaling up, if those materials aren’t able to be supplied here in New Zealand, then the upheavals in the global supply chain is causing significant practical supply issues right now.

Many things have changed in these last few months – and the lasting effects will be long and dishearteningly brutal for some. My hope for our industry is positive – perhaps finally we can have a sensible, balanced debate about what packaging does, not what packaging is, because quite simply, as we have all learnt, society does not function without it."

MOBILE APP

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column HOW WILL WE DEFINE WHAT THE ‘NEW NORMAL’ LOOKS LIKE? "In just a few short months, COVID-19 separated and confined us to our own homes as we united to tackle an invisible enemy. Everyday tasks such as going to the gym, sharing a meal with a friend and dropping the kids off at school were put on hold as we stayed home to stay safe. During our time in lockdown, New Zealanders adopted new shopping behaviours which according to Nielsen predictions, will stick as we emerge out of lockdown and collectively get back on our feet.

Kay Bramley

Senior Research & Insights Manager, Foodstuffs Marketing & CX

W

hich new behaviours formed during lockdown will ‘stick’ and how will they redefine the FMCG industry in the future?

Nielsen predicts a focus on health and well-being, the continued use of technology and the rise of home cooking and baking, are here to stay in Kiwi households.

New Zealanders adapted their shopping behaviours during COVID with only essential goods and services available. As a nation we were forced to adapt to new shopping and consumption behaviours with all meals eaten at home.

Increased demand for health and safety essentials and baking products prior to lockdown has remained strong in the market- predicting a long-term

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behavioural change amongst New Zealanders.

Health and wellbeing Household products such as toilet paper, dishwashing, hand sanitiser, cleaning solutions and bleach flew off shelves pre and during lockdown as consumers stayed home and cleaned their homes to stay safe. According to Nielsen, these categories saw a dollar growth of 33% in the 11 weeks ending 10 May 2020 compared to the same period last year.

Our early view on the new normal is that there will be a heightened awareness of diet and lifestyle preferences for healthier and cleaner eating and living. Consumers will prioritise immunity and food nutrition, like vitamins and supplements, ‘green’ cleaning solutions and other hygienefocused products to keep them safe and well.

Technology Nielsen’s research found global e-commerce trade soar with an increase of 85% in online shopping during

lockdown. High online accessibility and engagement will allow for greater integration of online and in-store experiences in the future as this is what tech-savvy customers are now demanding from retailers.

During lockdown, the Foodstuffs North Island team deployed a virtual queue solution, enabling customers to virtually reserve their spot in line at a store so they could wait somewhere more comfortable, like their car. This agile tech solution is just one way our stores were able to address a customer pain point of having to stand in a physical queue, 2 metres apart, to enter the store.

North Island New World and PAK’nSAVEs scaled their online offering, and a handful of our South Island stores starting to offer click & collect and delivery for the first time, which was all driven by owners’ quick adaption to meet their customers’ needs.

Agile, customer-driven tech solutions will continue to increase in the future.

Baking With the entire country eating and preparing meals at home, New Zealanders dusted off old cookbooks put their kneading skills to work during

lockdown. Categories like flour, baking needs, and sugar saw tremendous growth during lockdown - according to Nielsen, these categories saw volume growth between 44% and 82%vs last year with households turning to baking as a cure for boredom, an activity the whole family can get involved in or as a result of out of stocks at stores.

During the pre and in lockdown period, New World, PAK’nSAVE and Four Square customers nationwide purchased more than 1.5 million kgs of additional flour during this period versus the same period last year.

We predict this new generation of bakers, who spent their lockdown baking, will continue to explore what a bit of flour, yeast and water can create in the kitchen. We also predict the continued rise of alternative sugar, such as Monk fruit, agave and date paste, and ‘better for me’ flours such as coconut, spelt and almond flour.

Only time will tell which habits New Zealanders’ formed during lockdown will be here to stay for the FMCG industry. But agility, tech-driven and customer-driven solutions will be at the heart of how FMCG industry leaders can position themselves for success when as we start on the journey to the new normal."

By David Seymour, ACT MP

"“Hi, I’m 14 and I am worried about all this debt. Who is the Government borrowing all this money off and who will have to pay it back?” I’ve had a small volley of questions like this from my dormant Dancing with the Stars fanbase on Instagram. What their intuition is telling them matters for business and will matter for at least a decade.

E

very now and then a political issue cuts through from the ‘politics’ section of news websites. People who don’t usually follow politics still know intuitively when something is up. These kids reached out for answers to the dancing guy they know is involved with politics.

I can only tell them the truth. Yes, the Government is going to take Public Debt from a dreamy 20 per cent of GDP to 54 per cent. A level we haven’t seen since the tumultuous early 90s. What does that mean in reality? Well, GDP is about $300 billion. Divided by the ‘team of five million,’ GDP per person is $60,000 each.

Public debt, therefore, is rising from $12,000 per person to $32,000. The Government just committed to borrowing $20 grand on each citizen’s behalf.

Treasury forecasts that, by the time those 14 year-olds have their feet under the desk at work, interest rates will have risen and we’ll be paying 2.5 per cent of GDP, or $1500 each on interest every year.

But, not everyone will be paying it. There are a million kids under 18, nearly a million superannuitants, and a fair number of working age people who don’t work for various reasons. The average worker will pay for two people, or about $3,000 in interest every year.

And, we have progressive taxation. If you work hard and earn over the average, perhaps because you’ve worked hard on your business, you’ll pay the top tax rate and may find yourself paying for threeor-four people’s share. Depressing?

Maybe, but please don’t shoot the messenger. We have to recognize the hole we’re in. Oh for the days when Steven Joyce’s ‘$11 billion fiscal hole’ was big news. This one is much bigger and we need to start talking about how we get out of it.

This is especially important for business because 14 year olds aren’t the only ones with intuition.

If Government with deficits don’t manage their

spending they have to raise tax sooner or later, and business people know it. How do they respond? They hold back on investing because they sense any profits will be taxed harder than now.

This is the basic dilemma we face at September’s election. The current Government will hose money at every problem, particularly that of ensuring people feel buoyant through to said election. On the other hand, New Zealand’s long-term prospects depend on private sector investment. Investment that creates real jobs where people produce goods and services that consumers actually want to buy.

Creating that investment climate requires controlling debt without increasing tax, so either the current splurge needs to be reined in or business as usual spending needs to be reviewed.

ACT’s Alternative Budget (www.act.org.nz/ budget2020) proposes both. It shows how the Government could return to surplus and actually start repaying debt by 2023. Doing so requires honesty and leadership.

We need to ask, for instance, whether we can afford a billion dollars a year in Kiwisaver subsidies.

The Government is borrowing money so that people can invest it, but any financial advisor will tell you to pay off your credit card before trying to save and invest.

The same can be said of fees free tertiary education, which has not succeeded in its stated goal of getting kids from poorer households to study. Ditto the Provincial Growth Fund. The Fund has always looked suspiciously like a political slush fund but its recent ‘repurposing’ to prioritise projects that are ‘visible’ removes all doubt.

Fourteen year-olds get it. Businesses get it. In a small, open, economy the Government cannot live beyond its means for very long. The only questions are how long before the Government gets it, and whether voters will be ready in time to give them the message if they don’t.”

If you work hard and earn over the average, perhaps because you’ve worked hard on your business, you’ll pay the top tax rate and may find yourself paying for three-or-four people’s share. Depressing?

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