SupermarketNews // July 2014 by Review Publishing Ltd

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July 2014 • Vol. 7 No. 7

“If supermarkets want to increase the use of contactless payments, there needs to be a combination of technology and customer service.” Trina Snow (pg 8)

ANGRY PROGRESSIVE SUSPENDS GROCERY COUNCIL RELATIONS PROGRESSIVE Enterprises has suspended its relationship with the Food & Grocery Council following allegations that it was being targeted by the organisation and the FGC was showing preference for Foodstuffs in the marketplace. The Countdown team has pulled out of attending this year’s annual FGC conference and from taking part in various trade sessions organised by the FGC already held with Foodstuffs.

FOUR SQUARE TURNS 90

ICONIC retailer Four Square has celebrated its 90th birthday this month. Established on the 4th July 1924 by Heaton Barker, one of Foodstuffs founding members and CEO, Four Square is part of our national heritage with 274 HEATON BARKER stores nationwide. Steve Anderson, managing director Foodstuffs New Zealand, says Barker created the Four Square name during a phone conversation with one of the directors. “Suddenly he looked down and ‘there staring me in the face, were the lines continued on page 2

Managing director Dave Chambers has been visibly upset by what he says is the FGC’s attitude to his company. “Given the high profile role the FGC has played in making public allegations about our business over the last six months, it would be inappropriate for our company to attend this year’s conference,” he said. DAVE CHAMBERS “We greatly value our supplier relationships and our priority is to continue to work directly with our suppliers to advance our business and theirs,” said Chambers. None of the Countdown leadership will be involved in any FGC activities in the near future and the FGC CEO Katherine Rich has said the cancellation of Dave Chamber’s appearance at the conference would be a particular disappointment to her members. She has also commented to members on how disappointing it was that the Countdown team had declined an invitation to speak to members in a breakfast format similar to the recent Foodstuffs event in May because the team had “other priorities”. Progressive is upset at a number of supportive references to Foodstuffs in recent communications but among the straws that broke the camel’s back was the out of the blue invitation for industry stirring Labour MP Shane Jones to attend and be honoured at the recent FGC half yearly conference.

This was a surprise to a number of members and the first time that a retiring MP – and there are many of them this term – had been invited and honoured by the FGC. Jones of course was the figure primed by some unknown parties to raise the whole Countdown alleged bullying issues in Parliament and stimulate a Commerce Commission investigation. Many in the industry believe having him at the event was an error

of judgement and a slap in the face for Countdown on whom most FGC members rely on for up to half of their business. In the six month affair started by Jones, Countdown has lost millions of dollars in turnover and a chunk of market share from the considerable consumer backlash. Only now is it seeing strength return to its trading but the financial toll has been high through deep discounting and promotion to win back customers. At the end of the day, the Commerce Commission admits it has only had several supplier complaints. At the same time, Chambers is continued on page 2

BEST NEW PRODUCT AT FINE FOOD BENNETTO’S premium drinking chocolate took out the Best New Retail Product award sponsored by SupermarketNews at last month’s Fine Food expo. Pictured with the award is Lucy Bennett (second right) with friend Sue Collis, Tania

Walters (SupermarketNews, left) and Dona White, ceo of North Port Events (right). The 70% Peruvian cocoa dark drinking chocolate is sold in bar format and manufactured in Christchurch. Its innovative concept won in a hotly contested category. n

contents 4 New Constellation MD 11 Packaging Council 20 Breakfast Feature 24 Liquor 26 New Products

20 23 28

editorialcomment THAT HEALTH STAR RATING

WHILE some suppliers may welcome the Government’s decision over introducing the Health Star Rating system, it’s not all plain sailing despite being given a few years’ grace to put it into practice. The criteria can certainly create difficulties for some products that have generally been accepted in the past as unharmful. The fact is that there is a constant stream of new products coming into the market using new technology and of course technical and academic views on content that change almost with the seasons. The need for such a system may well be supported by some who think it is a positive step for making food choices, but it is not going to solve the obesity challenge. And in fact most supermarket shoppers have a damned good idea when buying what is good or not so good for them. It also could mean that a number of products already on the market and selling well, may have to be withdrawn if the result is too negative – and put a stopper on a number of other products that may be in the pipeline. Of course it is positive and promotional for those who are in that particularly healthy sector, but that certainly isn’t everyone in the market and some damage could be done. PETER MITCHELL Publisher

CONFECTIONERY DISCOUNTING

NEW Zealand’s high level of discounting within the confectionery sector, in particular chocolate bars and blocks, goes against trends in other developed markets where the price of chocolate is on the rise. With the cost for raw product increasing globally, it seems Kiwi consumers are starting to accept the discounted price as the ‘real’ price. Cadbury says its move to a lockdown price of one dollar bars has resulted in an increase in the average cost of a chocolate bar to consumers over last year’s figures, where the five bars for four dollars promo was regularly rolled out. Cadbury is not the only manufacturer discounting with both Nestle and Mars significantly dropping price every couple of weeks. While consumers are clapping their hands with glee, if this kind of activity continues it will become near to impossible for stores to sell chocolate bars or blocks at their retail value, resulting in manufacturers making a loss and NPD scaled back. The discounting culture also makes it hard for smaller and more premium players to maintain share. This issue we take a look at the breakfast category and wrap up our SIAL Paris coverage. It is certainly an interesting time for the grocery sector with both retailers hitting rough patches in their respective businesses. If you have any news or opinions please feel free to get in touch on (09) 304 0142 ext 713 or jasmine@reviewmags.com. JASMINE WALTERS, Editor

opportunity to win a special edition Mini and celebration cake tins for customers who spend $30 or more in-store. Babies born on the 4th July this year will receive a free teddy bear and $50 gift vouchers, with two teddy bears and $500 going to twins born on this day. n

sndiary 31 JULY-AUG 3 Auckland Food Show

21 AUGUST NZACS Industry Awards & JowettScholarship, 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

Progressive Drops FGC

Four Square Turns 90 continued from page 1

I had drawn around the figure. Four Square, of course’. The fact that the name and symbol came about on American Independence Day had added significance for the group who were after a brand which epitomised the private independent grocer,” says Anderson. Many of the group’s current owners are third or fourth generation grocers including Conor Kershaw from Four Square Martinborough, whose store has been in the family for 141 years. “Supermarkets are in my blood, my Dad, Grandad and Great-Grandad all owned this store previously. Being able to

provide great products and service to friends, family and the wider community is just what we do. I couldn’t imagine doing anything else, it’s a true passion,” says Kershaw. While the Four Square brand has adapted and moved with the times to ensure it has remained relevant in the hearts and minds of Kiwi shoppers’ there are a number of aspects which continue to give it that nostalgic feel including Mr 4 Square, who has appeared in advertising campaigns since the 1950s. To mark its birthday Four Square customers have the

continued from page 1

annoyed that there is constant reference to Countdown’s ownership by Australian Woolworths when he says the company employs over 18,000 New Zealanders and that around 94% of its sales come from New Zealand suppliers products. And it paid over $60 million in tax in New Zealand last year. The situation is serious for the industry body and the two parties certainly need to bring the matter to a close urgently. While there is antagonism towards the FGC’s perceived attitude, it is business as usual for most of the members (except we would suspect for those complaining to the Commerce Commission) as they try and bring their trading with Countdown back up to speed again. PETER MITCHELL 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 SENIOR DESIGNER Raymund Sarmiento, raymund@reviewmags.com

July 2014

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ST JOHNS COUNTDOWN OPEN FOR BUSINESS PROGRESSIVE Enterprises opened its 171st Countdown store in the Auckland suburb of St Johns last month, creating 82 new jobs for the community. Opened by managing director Dave Chambers, the Felton Mathew Avenue store is part of the retailer’s $380 million investment in Auckland. The store features a walk-in beer and wine chiller, full-service bakery, service deli, seafood department and an expanded new layout for clothing and kitchenware merchandise. Store manager Martyn Douglas is leading a 131 strong team, which includes 34 people from Work & Income. “We’re really excited to be open for business - it’s a fantastic site within the growing St Johns community, and we’re committed to providing our local customers with great fresh food, a modern shopping experience and value for money,” says Douglas. St Johns Countdown will also offer the popular Click and Collect service. n

NEW CONSTELLATION MD

CONSTELLATION Brands has announced Sam Glaetzer as its new managing director for New Zealand, with current CEO Joe Stanton set to retire in September. Glaetzer will be responsible for the New Zealand business including a comprehensive growth strategy for local vineyards and winery expansion, reporting to wine and spirit division president Jay Wright in the US. Set to take up the new role in mid July, Glaetzer has spent the majority of his career at Treasury Wine Estates and has extensive experience in both the New Zealand and Australian markets. “I am really looking forward to joining both the New Zealand and wider team at Constellation Brands at

such an exciting time for our fantastic portfolio of NZ brands, led by Kim Crawford and Selaks. The New Zealand wine industry continues to grow in all key global markets. And it’s a great opportunity to join the Constellation team that is leading from the front with its people, wine quality, investment and scale,” says Glaetzer. Jay Wright paid tribute to departing CEO Joe Stanton and the legacy he leaves behind. “He helped build and grow powerful global brands that celebrate New Zealand’s food and wine heritage. I’m confident that Sam will build on that foundation and bring his own style to this next phase in our business,” says Wright. n

FRONT-OF-PACK LABELS GO AHEAD THE Government has announced it will join Australia’s voluntary frontof-pack nutrition labelling system with The Health Star Rating Scheme given the final sign off late last month. Under the scheme, food will be labelled like electrical appliances with one to five stars indicating the nutritional value of the product. NZ Food & Grocery Council CEO Katherine Rich says the decision is a positive move for the food industry. “The star rating system on food packaging will be another important guide to make it easier for shoppers to identify more healthy choices, and we’re confident they will embrace it.

Though it’s a voluntary system, I’m confident that a significant number of manufacturers will support the new scheme,” says Rich. Designed to be simple and easy for consumers to understand, health ministers and consumer groups are hoping the new front-of-pack labelling system will encourage manufacturers to reformulate products in order to achieve more stars. While the Health Star Rating Scheme is being rolled out as a voluntary system, a health inquiry released late last year recommended it become mandatory in three years if take-up is low. n

SANITARIUM TO ROLL OUT STAR RATINGS SANITARIUM has welcomed the Government’s introduction of a voluntary front-of-pack labeling system and will adopt the new Health Star Rating system across its entire product range, including market-leading brands Weet-Bix and Up & Go. General manager Pierre van Heerden says assisting consumers to make healthier choices is something the company has always supported. “This initiative is an opportunity for the food and beverage industry to help improve the health of New Zealanders. Sanitarium is a trusted and well-known brand in New Zealand, and by providing transparent and easy-to-understand information through the Health Star Rating system we will continue to deliver on the trust that consumers already place in us, our brands, and our heritage,” says

June 2014

van Heerden. Strongly aligned with New Zealand Dietary Guidelines, the Health Star Rating system ranks products on a scale of one to five stars with five being the highest nutrition endorsement. “We know that consumers are interested in nutrition information and that this is a major factor when selecting food products. Currently, comparing nutrition values between products takes time and can be confusing. The Health Star Rating system is a practical and easy way for consumers to see the information they need to make healthy choices for them and their families.” Health Star Ratings will start appearing on Sanitarium products over the next few months as packaging changes are made. n

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MISLEADING COLES NZ MARKETING BAKERY CLAIMS AWARDS PROCEEDINGS have been brought against Coles in Australia by the ACCC over claims that some of its bread products were not as claimed. The company had been promoting Baked Today-Sold Today and Freshly Baked In-Store which were said to be false, misleading and deceptive. In fact some of the products were partially baked and frozen offshore including some that were partially made in Ireland and shipped to Australia to be finished in-store. The Federal Court found Coles guilty of misleading or deceptive conduct and in a hearing soon, the ACCC is seeking penalties, declarations, injunctions, costs and other orders.

SUSTAINABILITY WINS CUSTOMERS

GLOBAL retail analysis from Nielsen shows increased sales for brands with sustainability claims on packaging and for those companies promoting their corporate social responsibility efforts through marketing. Surveys across 60 countries found 55% of shoppers were prepared to pay more for products and services provided by companies committed to positive social and environmental impact. The propensity to buy socially responsible brands was strongest in the AsiaPacific region.

A HOST of grocery suppliers, retailers and individuals have been announced as finalists at the 2014 TVNZ NZ Marketing Awards. Industry Awards finalists include Cerebos Gregg’s, BP, Constellation Brands, Foodstuffs, DB Breweries, Frucor, Kimberly-Clark, Fonterra, George Weston, Heinz Watties and Whittaker’s. Individual Awards finalists include Boundary Road Brewery’s Ben Shaw, Whittaker’s Holly Whittaker and Philip Poole, Frucor’s Aisha Daji Punga, Tip Top’s Jade Clark, Independent Liquor’s Julian Davidson and Epicurean Dairy’s Kate Collins. Now in its 23rd year, this year’s event features 26 awards across 25 categories with winners announced on the 28th August.

CHEESE AWARDS TO ADD BUTTER AND YOGHURT

THE Specialist Cheesemakers Association has introduced butter and yoghurt categories into its 2015 annual industry awards as part of an expanded competition. Both products have a culture link with cheese and a number of cheesemakers have extended their repertoire into these categories already. While butter making has not expanded at the same rate, the yoghurt category has exploded in recent years.

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NEW HOME FOR PAIHIA STORE COUNTDOWN has announced it will continue trading in Paihia when its current lease expires at the end of this month, offering a basic grocery service from the old Fire Station building on Williams Road. Work is already underway to convert the 230sqm site into a small-format store, scheduled to open from August 1. “It’s not a perfect solution but it will allow us to provide all the essentials to our local Paihia and Waitangi customers - including fresh produce, meat, seafood, dairy, bakery, frozen foods, dry goods, beer and wine, at our same Countdown prices, and available Monday to Sunday,” says Joanne McNaught, Countdown’s area manager for the Bay of Islands. McNaught says if Countdown is unable to renew its existing lease at Puketona Rd, the retailer will also offer the community its full product range through both Click & Collect and online shopping, free of any delivery charges while it doesn’t have a full-service store in town. “Having a supermarket here is really important to us and we know that people are feeling uncertain about what’s going on. We are

working closely with our team to identify those of our team who could transition to our Kerikeri and Kaikohe stores, and those who could service the smaller Fire Station store,” she says. n

SIAL CHINA 2014 RECORD FIGURES HELD earlier this year, SIAL China 2014 attracted a record 49,265 visitors from 105 countries and regions, up 19% on last year’s attendance. Now in its 15th year, SIAL China 2014 featured 2,385 exhibitors from 61 countries, an 11% increase on 2013, and covered 96,200sqm. Showcasing the latest food and beverages from 55 international pavilions and 27 Chinese provinces and cities, this year’s expo was home to 18 dedicated product zones and SIAL’s innovation awards. South African company Yummy-Bowls Ltd was awarded the top innovation award for its Munch Bowls 250ml Plain Edible Crisp Wheat Bowls. n

ELECTRONIC LABELS ADD EFFICIENCY NZ ELECTRONIC Shelf Labelling (NZESL) has represented the Pricer brand in the Kiwi market for almost five years. The biggest brand in electronic labels internationally, Pricer has 8,000 installations across 51 countries and more than 100 million labels installed. Already in use in 62 supermarkets throughout New Zealand, electronic labels offer retailers significant labour savings and price integrity is guaranteed. “Electronic labels marry up with any back office system a retailer has in place and its two-way communication can confirm every label in store has been updated correctly,” says NZESL director Gavin Snowsill. The company has recently introduced e-paper labels which use kindle screen technology and have been installed in Pak’nSave Petone, the first store in Australasia. Snowsill says improved technology means electronic labels offer more benefits than just displaying price. “Pricer electronic labels can also feature QR codes as well as touch-andgo information. Its secondary screens can also feature stock levels and order dates as well as the number of facings a product should have,” he says.

While previously only viable for larger stores, Snowsill says electronic labels are now scalable and can be designed to suit any store, from a 4 Square through to a Pak’nSave. “The average return on investment is two years, while the labels have a lifespan of 8-10 years,” says Snowsill. Nelson City Fresh Choice owner, Mark A’Court, says Pricer’s electronic labels have made a significant difference to the running of his business. “We have had this system for nearly three years now and would never go back to paper ticketing. Pricer has worked without any major problems, the customer feedback has been 95% positive and I would recommend this to any operator within our group. It would be especially useful in smaller stores with limited staff resources and stores where owner managers are doing a lot of price integrity work,” says A’Court. n

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COROMANDEL 4 SQUARE UNDERWAY

WORK has commenced on Coromandel’s replacement Four Square store on the corner of Wharf Road and Charles Street. Set to be completed later this year, owners Peter and Lesley Pritchard say the new build will offer on-site parking as well as a greater range of fresh and everyday products. Foodstuffs NI general manager property development, Angela Bull, says the retailer is delighted to be investing in the Coromandel township. “Four Square has been an iconic part of the Coromandel community for almost 30 years and it’s fantastic locals will have a new replacement store with an improved fresh food and grocery offer and plenty of room, to ensure a more enjoyable shop,” she says. The existing Coromandel Four Square will remain open until the new site is completed.

ALL GOOD WINS FAIRTRADE AWARD

KIWI company All Good Organics has collected the Fairest Fairtrader award at the inaugural Fairtrade awards held in Germany. Importers of Fairtrade bananas and manufacturers of Karma Cola, All Good was recognised by judges for its innovation within the global Fairtrade system, growing 500% in the past year. Co-founder Simon Coley says its Karma Cola impressed the judges, as it goes beyond the Fairtrade standards.

CATCHING THE TREND THERE is a whole industry of experts predicting the next big trends in every field of human endeavour. Sometimes the experts are right (Kiwis did indeed wholeheartedly embrace EFT-POS), other times they are spectacularly wrong (the Segway was supposed to revolutionise transportation and change the world), and quite often they just never saw it coming (Sam Morgan worked on TradeMe in his bedroom while he still had a day job). This column presents two examples. In one, a supermarket chain seems to have identified a convergence of three trends and produced an innovative product to meet new areas of customer demand. In the second, a seemingly sure-fire development – contactless payment methods – is taking time to catch on and many potential users still have serious doubts which need to be addressed before they will shop and swipe. In Britain, supermarket giant Tesco announced a new healthy eating range called ‘My Fit Lifestyle’. The products are colour-coded according to five different calorie bands and all contain at least two of the five recommended vegetable servings per day. There is also support for personal eating plans and calorie counting on both a Tesco website and their app on mobile devices. Tesco appears to have identified three key trends and designed a product suite to meet changing customer needs. The trends are a push towards wanting to eat healthier, people’s increasingly busy lives (both home and work), and greater

use of digital and mobile technology. Research showed that six out of ten Britons regularly eat at their desk at work or on the move, and almost 90% of respondents said they make unhealthy food choices due to their busy lifestyles. Those figures are likely to be similar here. Tesco chief customer officer Jill Easterbrook said “we know that our customers are looking for us to help them lead healthier lives. They’ve told us that the pressures of the day make sticking to a healthy eating regime can be really difficult. As a working mum of three I know just how busy life can get.” ‘My Fit Lifestyle’ appears to be a welltargeted and well-thought out campaign, targeting very specific customers and providing them with products and support to meet their health and wellbeing goals. However, trends do not always develop as we might expect. At face value, contactless payment seems like a sure thing. Cards and other devices can use radio-frequency identification to make secure payments simply by swiping them over a reader. It’s around twice as fast as conventional payment methods and is undoubtedly easier. However, take-up has been surprisingly slow. An eDigitalResearch report showed that just over half of British respondents owned some sort of contactless payment card. Of that 55%, only 38% had actually used the cards to make a contactless purchase, mainly at supermarkets and convenience stores. While maths is not my strong

CHEP NEW ZEALAND CELEBRATES

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July 2014

point, those figures suggest only around a quarter of consumers have used contactless cards at all, and they will not be using them for all purchases. Most (71%) of the people not using the technology said they felt it was just not necessary. While a significant number of consumers say they intend to begin using contactless technology in the coming year, one of the major consumer concerns surrounds security, fraud and technical issues. Over 30% of respondents said they would like better or tighter security surrounding contactless technology. Interestingly, 75% of respondents reported they have never received any encouragement from staff to use contactless payments in stores. If supermarkets want to increase the use of contactless payments, there needs to be a combination of technology and customer service. From an industry perspective, it was not heartening to read that almost 15% of respondents said the biggest benefit of contactless payment was that they “can avoid having to talk to a cashier.” Trends, like surf waves, are hard to predict but get it right and the results can be spectacular. n

Trina Snow Executive Director NARGON

CHEP’S GLOBAL INNOVATION

CHEP NZ showcased a new instore merchandising concept for the fresh produce sector at the Produce Marketing Association (PMA) conference in Auckland last month. Called Fresh Market Advantage, the product is a plastic sleeve with a wood grain appearance that can be applied to the outside of a stack of reusable plastic crates (RPC’s) to improve the presentation of fresh produce. The global innovation has been developed in conjunction with CHEP’s stable mate IFCO North America, retailers and fresh produce suppliers and is easy to use, clean and ship. Well received by the North American fresh produce industry since its launch late last year, Fresh Market Advantage integrates in-store merchandising strategy and delivers superior quality with the lowest supply chain cost. “These new solutions build on decades of proven capability, our multiple generations of new product releases and our proven ability to deliver better supply chains through lower logistics costs, lower produce damage and improved store replenishment,” says CHEP Australia and New Zealand president Phillip Austin. n

SUPERVALUE BACK IN BUSINESS

LYTTELTON SuperValue reopened its doors last month after extensive damage from the 2011 earthquakes closed the existing supermarket. Located on London St, the new SuperValue store includes a modern design with integrated refrigeration cabinets, fresh meat and produce prepared on site as well as a great range of beer and wine. Owner-operators Robin and Cheryl De Thier are thrilled to bring a brand new supermarket to Lyttelton, providing good value for money across a range of fresh food and everyday conveniences. “The community is excited to have a full service, local supermarket on their doorstep once again and we are looking forward to showing our Lyttleton customers the brand new offer,” says Robin. He says the family is passionate about employing and investing in Lyttelton with 15 local faces joining the team. The store took just over six months to complete and will be open every day from 7am to 9pm. n

COROMANDEL GETS A COUNTDOWN

PROGRESSIVE has opened its first supermarket in the Coromandel Peninsula town of Whitianga, creating 55 new jobs for the local community. Officially opened by Mayor of Thames Coromandel Glenn Leach, the new Countdown store features wide aisles, an expansive fresh produce department, full-service bakery, 175 carparks and 13 checkouts. Countdown’s Managing Director, Dave Chambers, says the store will provide the busy holiday town with the convenience of a supermarket and adds to the retailer’s presence between the Waikato and Tauranga main centres. “We’re really proud to be working with local developers Whitianga Commercial Ltd to invest in the Coromandel. It’s always a significant milestone to bring our business to a new area where we don’t currently have a presence, and it’s great to also be driving local job creation in Whitianga too,” says Chambers. Store Manager Kim Bradley hails from Thames and is leading a team

with around 90% being Whitianga locals. “We’re really excited to be open for business here in Whitianga. We’re committed to providing great value for money, quality fresh food, and a modern shopping experience for our locals and visiting tourists,” says Bradley. Online shopping will be available from the store from September. n Miss Bic Qtr Page SN 154x102.5 A approved PRESS.pdf

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COLES ADMITS TO SUPPLIER THREATS

SUPERMARKET operator Coles has admitted it threatened supplier sanctions such as refusing new stock products and blocking access to sales forecasts when the suppliers declined to pay extra rebates to participate in a new supply chain programme. But the company has defended itself against allegations of unconscionable conduct by the ACCC as part of its Active Retail Collaboration (ARC) programme in contravention of consumer law.

CONSENT FOR PEACHGROVE RD

PROGRESSIVE has received Council consent to build a $23 million 4000sqm Countdown in Hamilton’s East. Set to create up to 100 new jobs, Countdown’s general manager for property, Adrian Walker, says the company is keen to employ and invest in the region. “We’re looking forward to putting together a local team to bring the great value, range, quality and service that Countdown is known for across the country, and add to our great team of 1160 across the wider Waikato region,” says Walker. The new store will be designed in Countdown’s latest new-generation format and will include 192 car parks and 14 cycle parks.

supermarketnews.co.nz

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CHINA - WHAT’S NEXT? CHINA’S demand for milk, meat and logs is fuelling New Zealand’s economic growth. These exports grew 53% in the latest year, pushing us into a healthy trade surplus. In March Prime Minister Key and President Xi Jinping agreed on a $30 billion target for two- way trade by 2030 (now $18 billion). Meantime Chinese investment in New Zealand grows apace: Beijing Capital Group’s $960 million acquisition of Waste Management is the just the latest example. At the same time, New Zealand exporters have been buffeted by changes in importation rules introduced by the Chinese government, often with little warning and with almost retrospective effect. As was highlighted in the mainstream press, the recent audit of infant formula manufacturers had a huge impact on the infant formula producer landscape here – some of our highest profile producers failed the audit

formula is a prime example of this ‘cargo cult’, with product appearing in mainland China from all sorts of unusual sources of supply. And New Zealand has been firmly implicated in facilitating this trade. Why does this matter to those readers of Supermarket News? The reality is that the New ZealandChina nexus matters to all of us. New Zealand has developed huge opportunities for Chinese trade and investment under the Free Trade Agreement. New Zealand was the first economy to have a FTA with China, and has been rewarded. Food is a huge focus of trade. Inward investment underpins the economy. However, six years on from the FTA, it is time for more thinking – what’s next in our biggest economic connection? Certainly GS1’s board – which represents a very wide slice of the NZ productive economy – has been doing a lot of thinking. So much so, that its putting money behind it. On August 21, as part of the Connect 2014 conference (see details above), we

and had opportunities to supply the Chinese market with product cut off. Some even had product on the water en route to market that they were told would be refused passage over the border. Some commentators have opined that the Chinese authorities are acting irrationally and outside normal conventions of trade. However, the Chinese have been quite open in their intention to regulate more intensively and ‘rationalise’ (my phrase, not theirs) the market for high profile foods like infant formula. In the aftermath of massive food safety scandals (think melamine, cooking oil sourced from reprocessed fat in sewers etc) the environment for profiteering off the middle-class Chinese consumer is ripe. These concerned consumers are directing their disposable income to buy almost anything that is from overseas, even if it is overpriced and of unknown provenance or quality. Infant

TEGEL AIMS FOR MORE GLOBAL GROWTH CHICKEN and turkey producer Tegel is continuing its spectacular offshore growth and last month was awarded the title of New Zealand’s Supreme Exporter as part of the Air New Zealand Cargo Export competition.

Tegel has more than doubled its exports over the past three years to reach more than $100 million. It also picked up the title of BDO Food & Beverage Exporter of the Year. In the past three years, the company has developed markets in Japan, Hong Kong and the UAE beyond its local markets of the New Zealand, Australia and the Pacific. n

RIGHT: TEGEL’S GENERAL MANAGER SALES AND MARKETING CHRISTINE CASH WAS PRESENTED WITH THE EXPORT AWARD BY PRIME MINISTER JOHN KEY.

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HOW DOE CAPTURE

GLOBAL THINKING THINKING GLOBAL 21 AUGUST 2014 THE LANGHAM AUCKLAND

are bringing these issues to the fore, bringing experts on contemporary China together Philip Turner (Director, Business Transformation at Fonterra, and ex MD of Fonterra China), noted commentator on China Jamil Anderlini (Bejing Bureau Chief for the Financial Times) and Mr Lu, the Vice President of Hangzhou WIT Assessment (one of the largest certifiers in China – and certifier to Fonterra and Zespri, among others) to discuss what’s next with China. It should make for a very interesting and thought provoking start to a fascinating day… Hope you can join other industry leaders in Global Thinking; Thinking Globally. n BROUGHT TO YOU BY

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July 2014

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PACKAGING COUNCIL MOVES TO NEW MODEL THE Packaging Council of New Zealand held its annual general meeting in Auckland last month, attended by 30 delegates. Attendees heard the Council’s financial wellbeing had significantly improved in the last year as it moves to a more flexible model and addresses lease costs. The meeting saw several changes to the Board of Management with current president Richard Manaton (Countdown) reappointed for another year. Manaton signalled this year would be his last on the Board and a new vice president is also being sought as Jonathan Marshall (O-I) has announced he is unable to continue the role long-term. The rest of the Board is made up of John Truscott (CocaCola Amatil), Nick Bishop (Fonterra), Bruce Campbell (Office Max), Alistair Egan (Fuji Xerox), Andrew Gleason (Visy), Keith Smith (Flight Plastics), Andreas Haussrer (Amcor

ONEHARVEST PRODUCE MARKETER OF THE YEAR ONEHARVEST’S marketing team has collected the PMA-Produce Plus Marketer of the Year award for its launch of Love Beets, a range of peeled fresh baby beetroot gently cooked in a vacuum-sealed pouch. Led by Andrew Francey, the OneHarvest team introduced the Australian grown product earlier this year with a well-integrated marketing campaign showing beetroot in a vibrant and contemporary light. The clear, consistent and concise marketing campaign saw the Love Beets range stocked in over 1,700 outlets across Australia, with sales delivering an impressive return on investment. “Beetroot has a somewhat iconic status among Australian consumers, but the local industry has been suffering difficult times and stagnating consumption. This well-marketed and innovative product has given a new lease of life to the category and the local industry by delivering the flavour and attributes of fresh beetroot in such a convenient and attractive package,” says John Hey, managing editor of Produce Plus. The PMA-Produce Plus Marketer of the Year Award is now in its third year and is the premier award for marketing in the Australasian fresh produce and floral industries. n

DPP – A ONE STOP SHOP DESIGN Print Partners has serviced the FMCG market in New Zealand and Australia for more than 27 years. The company remains focused on the grocery sector, supporting its clients with everything from strategic design and branding through to marketing logistics. Its one stop shop approach

Flexibles), Craig Wilson (Transpacific Industries), Harry Burkhardt (Replas), Murray Parrish (Carter Holt Harvey), Cheryl Speechly (Tetra Pak), Darren McClenaghan (Sealed Air), John Cato (Orora Packaging) and Elspeth MacRae (Scion). In his address, Manaton says the Council will continue to focus on brand New Zealand and its ability to market, recall and drive export growth. “How we represent ourselves as an industry is more important now than it’s ever been before,” he says. Attendees were told the Council’s product stewardship accreditation scheme has been sidetracked, with the Board looking to make it more inclusive and engaging to members. The conference also heard from UK based guest speaker Dr Alistair Irvine. The winner of the Packaging Council’s NZ Fine Food prize draw was announced at the end of the meeting with Columbus Coffee barista trainer Pavel Zhuravlyov awarded an iPad. n

provides DPP with the unique ability to measure design and promote success. “We are able to not just create, but run the pack build process, and manage through our electronic approval system as well. Additionally we liaise with the printer through the process ensuring the QA are met,” says DPP’s Scott MacKay. Consistency and innovation are at the forefront of the company with clutter free packaging faces delivering a clear message and engaging the consumer and trade. In terms of packaging design, MacKay says it is a case of back to the future with many of DPP’s clients now standardising the number of colours within their pack designs. MacKay says improving technology means sustainable packaging is also becoming the norm with the print industry now testing new methods of producing packaging within CMYK. “This will not only result in less plates and ink but less cost. These savings can be used to cover additional costs of sustainable and biodegradable material. We are no different to any other industry and we need to understand our carbon footprint,” says MacKay. n

Miss Bic Qtr Page SN 154x102.5 B Approved PRESS.pdf

16/04/14

9:13 AM

NEW COFFEE CAPSULES

D.E MASTER Blenders has introduced the ultimate coffee capsule to the Kiwi market with the L’OR Expresso range. Compatible with Nespresso coffee machines, every capsule is individually wrapped and provides consumers with unparalleled aroma, rich flavour and golden crema. Already a huge success globally, L’OR Espresso is quickly gaining traction within the local market. Produced in France from 100% pure Arabica beans and heavily supported in media, D.E Master Blenders’ new premium brand is set to drive value growth into single serve coffee market in NZ. n

supermarketnews.co.nz

I 11

REGENT COUNTDOWN OPENS US SWEETS & SNACKS EXPO

THE National Confectionery Association Sweets and Snacks expo took place in Chicago on May 20-22, providing manufacturers and distributors with access to over 20,000 key retailers and buyers from around the US as well a number of international buyers. Attracting over 600 exhibitors, this year’s show had a focus on innovation and new products. Worth just over $33 billion, the US sweets and confectionery category grew 2.5% in the past year, with the largest segment being chocolate which gained 3.6%. New products added $890 million to the US category last year, with a large focus on ‘better for you’ offerings. “It appears that products and packaging trends are tapping into the trend of consumers looking for an indulgent treat, while also ensuring they alleviate the guilt by choosing products that are ‘better for them’ or better for the environment,” says Wilson Consumer’s Dave Cunningham who attended the expo. Cunningham says there was also an increase in functional confectionery on display, which combined super fruits such as Acai with added energy or digestive benefits. “Manufacturers were also presenting a number of innovative or exotic flavours, such as wasabi or sriracha red chilli flavours. I can understand the opportunity for these niche flavours in massive

WHANGAREI Mayor Sheryl Mai has opened Countdown’s new Regent store, which replaces the Countdown in Kensington following the end of its lease. The 3575 sqm store is located on the corner of Kamo Road and Manse Street and has provided continuity of employment for the current team as well as further job creation within the Whangarei community. “We’re a very proud employer of more than 330 people across Whangarei and it’s great to provide an opportunity for new team members to join our business, and starting great careers in retail with us,” says managing director Dave Chambers. The new generation store features energy efficient fittings and equipment, offering a new and improved shopping experience for its customers. “We’re really excited to show off our brand new store and can’t wait to see what our local customers think of the modern design and exciting new products and range,” says store manager Paul Ah Chong. The store will also offer the Click and Collect service. n

Look who has joined the

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FOODSTUFFS North Island commenced refurbishment work on its Pak’nSave Pukekohe store late last month. Angela Bull, Foodstuffs North Island general manager property development, says the updated store will provide customers with a modern grocery shopping experience. “The renovation will enhance the customer’s experience as we modernise the store exterior and give the store interior a refresh, so that customers will really see the difference as they enter the store,” says Bull. Owner/operator Nigel Ollett says he is excited about the new look store. “I’m really looking forward to giving the store a facelift so that we continue to provide our customers with a Pak’nSave that meets their shopping needs.” Located on the corner of Queen and Harris Streets in Pukekohe, the store will

markets like the US, but they may struggle to achieve the desired rate of sale in a smaller NZ market,” says Cunningham. The expo hosted key innovation awards for new products with several brands available in New Zealand collecting awards. The Jelly Belly brand took home the award for best in show innovation for non-chocolate with its beer flavoured jelly bean while Pop Gourmet popcorn won the savoury snacks best in show with its Sriracha Hot Chilli popcorn. Offering an insight into one of the world’s biggest confectionery markets, this year’s expo overlapped with the National Restaurant Association show, which was home to more than 1800 exhibitors and more than 60,000 attendees. n remain open throughout the refurbishment. n

NZ EMBRACES ONLINE

KIWIS are now spending $3.8 billion online with this figure expected to reach $4.15 billion by the end of the year, according to Nielsen’s latest report. The number of New Zealanders shopping online also increased by 6% in the last year, bringing the total to 1.9 million. Nielsen’s research director, Tony Boyte, says New Zealanders have embraced internet shopping, with the number of items each person was buying increasing at a rapid rate. “Nearly half a million Kiwis each made 11 or more purchases on the internet last year, an increase of 58% in the last two years,” he says. Kiwis spent a considerable amount on off-shore based websites ($1.3 billion) with the US, Australia and the UK being the most popular. n

CMY

supermarketnews.co.nz

I 13

COTTONSOFT PICKS UP INNOVATION AWARD

COTTONSOFT has been awarded the 2014 Environmental Choice New Zealand (ECNZ) innovation award, cementing itself as a market leader. The Government-owned ECNZ ecolabel covers more than 2,000 products and services with independent environmental scientists taking into consideration innovation in environmental benefits as well as changes manufacturers made when judging the awards. “Cottonsoft scored well ahead of many other very worthy labelholders. The company was especially impressive in its willingness to make changes that put it in the forefront of environmental practice,” says ECNZ general manager Robin Taylor. The win follows the toilet tissue and paper towel manufacturer consolidating its presence in the South Island in recent

years, expanding its Dunedin manufacturing facility in 2013. The new plant has the capacity to meet demand for the company’s retail products throughout the island, total production of around 300 pallets per month, as well as fulfil its local warehousing and distribution needs. Cottonsoft Country Manager Kim Calvert says the win is the icing on the cake following the hard-earned ECNZ certification and progress in Dunedin. “The process of earning the ECNZ ecolabel was a robust one, and we are grateful now to have been recognized for our innovation. The backing of our supplier APP was crucial to our ability to expand our manufacturing footprint and demonstrate that we can, and do, produce high-quality goods at competitive prices using marketleading sustainability practices,” he says. Calvert says the company’s progress reflects its commitment to local converting and a drive for new business growth that acknowledges consumer demand for evidence of best practice. “To have maintained our market leadership status through the recession, which was brutal for the manufacturing sector, was a point of pride, and we are building on what we achieved in 2013.” n

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

July 2014

GOAT MILK FORMULA SELLING WELL FRESCO Nutrition’s Goat Gold Plus brand is gaining traction in the competitive infant formula sector, this month being stocked nationwide through Countdown stores. Available in Foodstuffs North Island since April last year, the Goat Gold Plus range is offered in 0-6 months, 6-12 months and toddler milk options. Fresco managing director Gregg Wycherley says the company wants to own and grow the goat milk infant formula segment. “We import goat milk as well as have a New Zealand supply so we won’t run out of stock, which has been a huge issue for other brands. Almond milk has been taking off because goat milk hasn’t been available,” says Wycherley. Manufactured in the Auckland suburb of Albany, the company has recently expanded its range, launching Family Milk Drink in a 450g can. Suitable for consumers aged three years and above, the goat milk

powdered product contains added fibre and energy and can be used as a follow-on formula for young children. Family Milk Drink also appeals to adults who don’t want cow’s milk and has been well received by elderly consumers. While goat’s milk contains dairy it is easier to digest and less likely to cause allergies than cow’s milk. Wycherley says its Goat Gold Plus range will also be rolling out across 20 Woolworths stores in Sydney in the next couple of months, with the company interested in entering the Asian markets. “We never wanted to be an export only brand, the product had to be able to stand on its own two feet in both the New Zealand and Australian markets.” n

Growing our country’s future with fresh fruit and vegetables SCHOOLCHILDREN in low-decile schools around the country will continue receiving free fruit and vegetables thanks to the government-funded Fruit and Vegetables in Schools programme managed by United Fresh New Zealand Incorporated (United Fresh). United Fresh now supply over 100,000 servings of fresh fruit and vegetables each school day, adding up to around 20 million servings of fresh produce each year. When the scheme started, it was only planned to run for three years. But when teachers and principals in the pilot scheme reported children were more active, better behaved and had fewer health issues, it was expanded. Mums and dads also got on board, with children bringing healthier school lunches from home and families buying more fresh produce. Fresh fruit and vegetables are delivered to 479 low-decile schools in 21 regions. The programme is focused on local seasonal produce when practical and available, and even includes some of the more unusual varieties, including mineolas – a type of tangelo. The fruit delivery is tied into the curriculum through The 5+ A Day Charitable Trust which produces curriculum-linked resources to encourage growing and eating fresh fruit and vegetables for health and vitality. Schools play an important role in shaping children’s healthy eating habits. Research shows that by introducing children to fruit and vegetables, and establishing a liking for fresh produce early in life, they are more likely to continue these healthy eating habits into adulthood. Eating fruit and vegetables helps

to protect against some common cancers, as well as cardiovascular disease. When fruit and vegetables replace less healthy foods in the diet, children experience even more health benefits, such as maintaining a healthy body weight. Obesity is a growing problem in this country with 31 per cent of adults and 11 per cent of New Zealand children now obese, according to the most recent Ministry of Health report. Being overweight or obese can lead to a higher risk of developing type 2 diabetes, high blood pressure and heart disease. Childhood obesity can also have effects on long term health and longevity. Fruit and Vegetables in Schools has a whole school community approach. It brings together school staff, including the principal, senior management and the Board of Trustees, alongside students, parents or caregivers, whānau, community groups and agencies as they work collaboratively on health related issues. The Fruit and Vegetables in Schools programme is a wonderful initiative that has improved the health and wellbeing of Kiwi kids. Highly respected worldwide, the Fruit and Vegetables in Schools programme is helping to grow our country’s future. Visit www.unitedfresh.co.nz to learn more about United Fresh membership. n

David Smith United Fresh www.unitedfresh.co.nz

supermarketnews.co.nz

I 15

storecheck This month our independent reviewer visited stores in the Tauranga area. While the overall standard was quite high, stores let themselves

COUNTDOWN, FRASER COVE

Visiting Tauranga on a bleak and wet winter day I decided to check on a few supermarkets. First up was Countdown Fraser Cove. From the outside there was nothing particularly noticeable but once in store I noticed how big this store was. So big in fact that you realised it was going to be a long walk to get around the whole store. The store clean and tidy and well lit. A few out of stocks in the meat section but otherwise was well stocked. I did notice an unusual display of clothes in the middle of the store that was very messy. A bit more effort needed there.

NEW WORLD, GATE PA

Moving on I next visited the New World at Gate Pa. A smaller store with a modern look that was rather let down by the foyer with trolleys scattered around and the posters in the window not square. However on entering the store I found a bright well lit store with lots of lovely produce. I thought the fish and deli sections were well stocked and looked fresh and appealing. There was an excellent selection of cakes and buns in the bakery section. Ticketing was good across the store and all the products were well fronted. The staff were all well dressed and there were plenty of check outs open.

COUNTDOWN, CAMERON RD

Next up further along Cameron Road was another Countdown. The most striking feature was the covered walkway that featured a lovely fern garden. Whilst the exterior signage was old green style the interior of the store was the new modern style, which made a good impression. A number of out of stocks were noticed in the frozen goods area. Again across the store there was good signage and all product was well fronted. The general merchandise area was noticeably very tidy. There were plenty of check outs open and the service was quick and friendly. Returning to my car I noticed a bit of rubbish and more than a few trolleys scattered around the underground car park.

PAK’nSAVE,CAMERON RD

Lastly I visited the Pak’N’Save a bit further down. This also had an underground car park but it again was let down with trolleys scattered around and some rubbish littering the trolley bay. Although the outside of the building looked smart and modern the inside didn’t give the same impression. With somewhat scruffy and dirty floors and poor lighting. However the shelves were well stocked and ticketing was

July 2014

STORE EXTERIOR

CD NW CD PnS Fraser Cove Gate Pa Cameron Rd Cameron Rd

• 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 NW CD PnS Fraser Cove Gate Pa Cameron Rd Cameron Rd

• 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 NW CD PnS Fraser Cove Gate Pa Cameron Rd Cameron Rd

• 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 NW CD PnS Fraser Cove Gate Pa Cameron Rd Cameron Rd

• 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.)

down with a lack of attention to detail. New World Gate Pa took out the top score with its well stocked offering. good. The fish section had a good range that was well presented and looked fresh. The store was busy with lots of shoppers which always makes the trip through the check outs slow. Overall I thought there was plenty of choice for shoppers in this small area. The standard was high across all 4 stores. But it the little things that needed more attention. n

www.supermarketnews.co.nz

STAFF

CD NW CD PnS Fraser Cove Gate Pa Cameron Rd Cameron Rd

• 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 NW CD PnS Fraser Cove Gate Pa Cameron Rd Cameron Rd

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

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

• Was there a full range of produce?

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

4 4 4 3

• Overall shopper experience (10 pts.) 7

HOW THEY SCORE?

CD NW CD PnS Fraser Cove Gate Pa Cameron Rd Cameron Rd

Maximum available score: 200 pts 158 165 158 156 TOP SCORE

supermarketnews.co.nz

I 17

globalsnapshot

Part 2

The 2014 WORLD TOUR BY SIAL JURY brought an innovative array of products from 29 countries for judging in Paris last month. From among those presented to the jury we have chosen a selection to preview here in Part 2 of a two part series, with some of the products destined, we are sure, for our shelves given their originality and innovation. Each of these products are successful brands within their own countries.

FRANCE

BELGIUM

LAUNCHED late last year in Belgium, Balade’s Vital product offers the real taste of butter but with reduced cholesterol and fat levels. Made exclusively from milk, Vital uses patented technology to create a butter and margarine hybrid which contains only 28% of fat, compared to 82% for standard butter. The product has been well received in Belgium, where the margarine segment is suffering and cooking shows have offered a new dynamic to the butter segment.

BRAZIL

CARDEAL Extra Virgin Olive Oil is a unique range of four olive oils differentiated by acidity level. Released in Brazil in March 2013, the Cardeal range is available

in 0.2%, 0.3%, 0.4% and 0.5% variants and comes with culinary recommendations. Distributed by Bunge Brazil, the 0.2% product is ideal for use in risottos and pasta while the 0.5% version works well in salads, chicken and duck. Olive oil is a growing category in Brazil and appeals to premium and sophisticated consumers.

CHINA

BRIGHT Dairy & Food Co launched Coconut Milk Beverage under its Bright label in China. Featuring novel and unique packaging, the product is coupled with an innovative recipe which consists primarily of water, coconut and milk. Its packaging is cheaper and less labour intensive to manufacture and was the winner of a sustainable packaging award in China last year. Its high nutritional value and refreshing taste has been well received by Chinese consumers, with sales in the first month topping 10 million yuan and estimated annual sales in 2014 expected to exceed 200 million yuan.

July 2014

BASED on the Chantilly whipped cream concept, the French Siphonés brand has launched four cheese mousse varieties in aerosol format. Available in plain, goat’s cheese, garlic & fine herb and tomato variants, the range is practical, price competitive and caters to the dinner aperitif trend. Successful in mass merchandising channels, the Siphonés range has picked up an LSA Innovation Award and is extending its offering to include a cheese vegetable mousse along with a chocolate mousse and egg white options.

GERMANY

GERMAN manufacturer Zimmerman-Graeff & Müller (ZGM) introduced a wine and beer hybrid called Sin No 8 at the ProWein trade fair earlier this year. The product combines the sweetness of wine with the bitter taste of beer and has already been successful with consumers. The product is price competitive and is being marketed as the eighth deadly sin.

INDIA

BRITANNIA Industries released a range of flavoured yoghurts under its Daily Fresh brand in mango, vanilla and strawberry variants. Launched in India at the end of 2012, the Daily Fresh range is fortified with five active nutrients and is available in a set form, making it easier to scoop and eat. Flavoured yoghurt has emerged as a distinct segment in India, with milk based products playing a major dietary role in the country. Both frozen and fresh yoghurt are seen as healthy options, with the majority of flavoured yoghurt consumers being young working adults who are open to trying new products.

NETHERLANDS

SOURCY Holy Soda is a 100% natural aerated water range launched in the Netherlands in March 2013. Made from natural mineral water, 30% real fruit juice and stevia, the range is low in calories and offered in appleraspberry, pear-peach and apple-cranberry variants. Less sweet than standard soft drinks, Holy Soda contains only 13 to 15kcal per 100ml and plays into the health trend in the Netherlands.

NORWAY

SIGDAL Bakeri introduced the Very Crispy Crispbread (Helsprøtt knekkebrød) range in Norway in 2013. The premium crispbread range is high in fibre and has the appearance of homemade in both texture and packaging. The Very Crispy Crispbread range has created growth in a category that has been dominated by few suppliers, low level of innovation, and profit and is now market leader in the two biggest stores in Norway. Sigdal has added two new variants to the range this year with exports to Sweden, Denmark and Finland all underway.

POLAND

LAUNCHED in Poland, Ksiazece Jasne Ryzowe lager is a special composition of Pilsner malt, grain white rice and mixed hops. The inclusion of White Greek rice results in a lighter, more flavourful beer with a 4.5% ABV. Jasne Ryzowe has a less bitter taste than standard beer with its fruity and citrus flavours being well received in Spring and Summer last year. The product has helped to buoy the specialty beer segment, proving popular with consumers looking for new flavours.

PORTUGAL

SAGRES Radler beer was successfully launched in Portugal in March 2013, selling two million litres in its first two months. Radler combines natural lemon juice with beer and was a new concept in the Portuguese market. Well accepted by both male and female consumers, Sagres introduced a non-alcoholic version in March this year.

SOUTH AFRICA

THE Gourmet Africa range was introduced to the South African market in October last year and encompasses soups, simmer sauces and a peanut butter snack. Ideal for vegetarians, the convenient and healthy range of authentic regional dishes from Africa is lactose, GMO, and gluten free. Produced in South Africa’s first green food factory, Gourmet Africa products are packaged in 100% recyclable and microwavable stand-up pouches and have a shelf life of 18 months.

SPAIN

SPANISH herb and spice brand Carmencita increased its offering in June 2013 with the release of Carmencita’s Cocktails. Containing a blister pack of botanical herbs, Carmencita’s Cocktails allow consumers to prepare premium gin and tonics at home. The product comes complete with pink pepper, juniper, cardamom and hibiscus flower as well as a recipe book inside, which has been produced by a professional bartender. Carmencita’s Cocktails have been particularly well received in Spain, where there are currently more than 150 different kinds of gin. n

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. *

« I love SIAL »

ge d a b e c ran s.com t n r e lpari u o y sia r . e w Ord at ww

By years G R O U P

of innovation

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supermarketnews.co.nz

I 19

breakfast NUTRITION & HEALTH DRIVING GROWTH

CEREAL Partners Worldwide is a joint venture between Nestle and General Mills which operates in all markets outside of the US and Canada. In New Zealand, CPW has the Uncle Tobys brand as well as subbrands including Cheerios and its hot oat portfolio. It also handles standalone labels such as Nestle’s Milo cereal. CPW country business manager, Peter Murray-Brown, says the company is focused on meeting the growing consumer cereal category drivers of nutrition and health, demonstrated by the recent marketing support for its key family brand Cheerios. “Cheerios is a global brand for CPW and in New Zealand it is taking an ever increasing share of the family cereal segment,” says Murray-Brown. Sales YTD to 18th May 2014 show an 8.4% increase in grocery sales for the brand with Murray-Brown attributing this growth to its well-received TV advertising campaign. Run at the start of this year, the advert focused on establishing the health credentials of Cheerios which contain less than one teaspoon of sugar per serve and are 74% wholegrain. n

NEW BELVITA FLAVOUR

MONDELEZ has added to its Belvita biscuit range with the launch of a chocolate variant. Specifically designed for breakfasts, Belvita was the first brand to bring a breakfast slant to biscuits and has brought new consumers to the category. Category development manager, Adrian Blake, says the new addition uses quality Cadbury chocolate and brings the Belvita offering to five variants. “Chocolate is the leading flavour in ‘Breakfast on the Go’ drinks, (Nielsen 23/4/14) and research shows it is the most preferred Belvita flavour,” says Blake. The global product is manufactured in Czech Republic for the Australasian market with sales of the brand spiking during work and school periods. Mondelez will continue to support its Belvita brand with a $600k ratecard TV spend planned for this year. n

MUESLI GROWS

THE muesli category has performed well over the last few years, generally

NEW PRODUCTS FROM KELLOGGS KELLOGG’S has the Nutri-Grain, Special K, All Bran, Crunchy Nut, Sultana Bran, Just Right and Coco Pops brands in the liquid breakfast, ready to eat cereal and muesli segments. With a 30.4% share of the market, the manufacturer has recently added to

its offering with the launch of three new products. Its All Bran label introduced Apricot & Almond and Cranberry & Pink Lady Apple variants in April while the company has released a Sultana, Currant & Almonds option from its Just Right brand. Two new limited edition variants Choc Malt and Honey Crunch – joined the Nutri-Grain range earlier this year, driving incremental growth for the brand. Kellogg’s brand manager Penelope Ryan says despite the overall category declining at 0.7%

growing ahead of total breakfast with 19.6% growth. Smartfoods has contributed to this growth with four main ranges - Luxury Blend, Café-Style, The All Good, and Clusters- from its Vogel’s brand. The company is growing ahead of the category at 6.1%MAT and has recently added to its offering with the launch of Crunchy Peanut Butter Clusters and Luxury Blend Gluten Free Apricot, Almond, & Quinoa muesli. “Gluten free products are really growing as more consumers try to meet specific dietary needs and this is an amazing muesli with no compromise on flavour – just what gluten free consumers want,” says Smartfoods’ Sophie Dysart. The Luxury Blend range has also been updated with new look packaging. Smartfoods has also released its Café-Style Light Berry in a 650g pack to cater to larger families and regular consumers, with sales to date ahead of expectation. “Vogel’s Cafe-Style range is the largest selling range in Countdown and NW North Island MAT and last quarter, and

YTD, liquid, hot (oats) and muesli are all experiencing growth (AZTEC 08/06/2014). “As optimism continues to be high with the NZ population, niche and more expensive products have more appeal. The functional/light health and muesli segments are showing growth as consumers are looking for more wholesome ingredients in their breakfast,” she says. Ryan says Kellogg’s has worked hard to improve the nutritional properties of its products, with its Special K brand introducing a new formula with three grains, making it one of the highest protein cereals while being 99% fat free and a source of fibre. The Special K banner has also launched two innovative new snack offerings - Biscuit Moments and Cracker Crisps. n

growing strongly in other accounts. This shows when consumers find a product that really delivers on taste and nutrition; they are prepared to pay a price premium, growing value in the category.” n

GOING STRONG 70 YEARS ON

ARATAKI, New Zealand’s number one honey brand, continues to grow the New Zealand honey market with a 27% value share of the near $40m category. (Aztec MAT 04.05.2014) Celebrating its 70th birthday, demand for the Arataki brand continues to reach

new heights with over 20% growth in both volume and value over the previous year. First established in Hawkes Bay in 1944, the Kiwi favourite has seen many changes in the market and its offering spans pouring, spreading and health honey. Arataki UMF 5+ Manuka in a 500g jar is new to the range and looks set to drive further growth in the high value Manuka health honey segment. As well as being the home to the country’s number one honey brand, Arataki is New Zealand’s leading beekeeping enterprise. Good hive management and an increasing awareness of the health benefits of honey has seen what started as a small family business on a few acres of land become one of the largest beekeeping operations in the Southern Hemisphere. The fourth generation family business takes great pride in what it produces, monitoring each step from hive to pot. n

NEW

Laboratory Certified UMF® 5+ Manuka Honey. NOW AVAILABLE IN SUPERMARKETS NATIONWIDE

July 2014

ORB COFFEE IS COMING TO RETAIL!

After 10 years of success in the Foodservice channel, Cerebos Greggâ&#x20AC;&#x2122;s is bringing the super premium ORB brand to retail LAUNCHING ON ON JULY JULY 7TH LAUNCHED Building on growth in premium fresh 120gm size: fresh premium coffee at a mainstream unit price

ORB CHALLENGE: TO BE THE BEST DAMN COFFEE IN THE CIVILISED WORLD supermarketnews.co.nz

I 21

breakfast PROTEIN & CONVENIENCE GLOBAL TRENDS

SANITARIUM Health & Wellbeing is New Zealand’s largest breakfast company with a 35% dollar share of the $278.5 million category. Its household brands include WeetBix, Up & Go, Cluster Crisps, Sanitarium and Light ‘n Tasty. The company has recently added to its Weet-Bix offering, releasing Energize and Energize Hi-Protein variants. The new high protein products from New Zealand’s number one cereal brand tap into the global protein trend, which is now emerging in the breakfast category. Senior category development manager, Alison Johnston, says protein has already taken off in the US and UK markets. “Introductions of foods and drinks making a high protein claim are almost three times higher in the US than anywhere else in the world, accounting for 19% of global new product launches in 2012,” says Johnston. Johnston says liquid convenience is also continuing to drive growth for the category and remains the fastest growing segment in breakfast. S a n i t a r i u m ’s Up & Go range created the convenience segment and

currently enjoys an 84% share. Its one litre Up & Go variant has grown from a $200k product in 2011 to being worth $3m in 2014. Johnston says while Weet-Bix is the company’s number one brand in New Zealand, Up & Go is growing to rival it and is already bigger across the ditch. n

MUESLI BOOSTS CATEGORY

HUBBARDS is the number one brand in muesli with $14.2m in sales and 31.8% share of the $44.6m category. The brand has seen 20.9% growth in muesli in the last year, largely driven by the launch of its Amazing Muesli range which is now worth $4m. Featuring eight variants, the Amazing Muesli offering includes a new ‘double toasted’ style of muesli as well as two natural mueslis - 5 Fruits & Honey and 5 Grains & Hazelnut. “The introduction of these two mueslis has seen the natural muesli segment grow 19.9% over the last year. These two variants combined make up $1.2m in sales,” says Hubbards’ marketing manager Rebecca Bergs. Hubbards has three muesli ranges Amazing, Originals and Simply – as well as cereals Light & Right, Thank Goodness Gluten Free and Bran in the breakfast category.

Total Supermarkets - CURR MAT w/e 15/06/2014 Val Sales Val % Chg YA T. Breakfast Cereals $278,626,775 0.9% T. Family $90,534,684 -4.3% T. Adult $56,780,850 -4.0% T. Muesli $41,494,519 8.5% T. Convenience $33,882,175 14.1% T. Kids $25,137,403 1.7% T. Hot - Standard $22,384,975 6.0% T. Hot - Sachet $8,412,170 -3.5%

Unit Sales 59,595,661 20,235,910 10,637,718 7,402,767 6,432,155 6,625,315 6,396,020 1,865,776

Unit % Chg YA 0.1% -4.3% -5.3% 6.5% 8.1% 2.0% 8.4% 1.8%

Source: Nielsen NZ Scantrack

Bergs says muesli is not far from being the leading category in breakfast cereals and has grown 5.9%, well above the breakfast category’s growth of 1.3%. “Muesli is a segment that continues to grow strongly from year to year. In the last 10 years the muesli category has doubled and we don’t see any signs of growth slowing,” she says. n

HANDMADE PROVIDES POINT OF DIFFERENCE

PURE Delish has been producing high end breakfast cereals for the past eight years with its range growing to span seven variants. The range is handmade in small batches before being handpacked to ensure the products live up to the standards people expect from the premium brand. “We are one of the very few brands in New Zealand that actually make our products by hand and we firmly believe that this sets us apart, particularly in taste from other more mass produced/machine made options,” says owner Karen Staples. Over the years the brand has picked up several awards with Staples attributing the company’s success to its focus on creating products that are innovative and challenging

to the market. “We are not afraid to have the most expensive products in a category but the focus must be on quality and bringing something different”, she says. Staples says there is a growing trend for products that are free from artificial colours, flavours and preservatives. “Consumers are more discerning now about what they eat and what goes into the food they eat. In addition there has been, and still is, a growing high demand for more specialist health products i.e. gluten free, diabetic friendly and suitable for those on a paleo diet.” Launched last year, Pure Delish’s Raspberry & Maple Nut Nograin-ola has been an innovative addition to the category. The product contains no grains and is low in sugar and is the brand’s top selling cereal despite being its most expensive offering. n

ElEctrONic ShElf labElS the SMart way to engage with customers as recently installed in PaK’n SaVE, Petone. first E-paper supermarket in australasia with many more lined up for installation.

Over 60 Supermarkets in New Zealand now with electronic labelling ContaCt Gavin SnowSill for more information on

0800 4nZ eSl (469 375) www.nzesl.co.nz 22

July 2014

h&baisle NEW SUPERSTAY FOUNDATION

MAYBELLINE New York has introduced two new products to its SuperStay range with Better Skin Foundation and Concealer launched. Featuring an energising complex that hydrates and plumps, Better Skin Foundation contains Actyl-C which removes discolouration and dullness. The longlasting liquid foundation is ideal for consumers with skin problems and is offered in eight shades. Better Skin’s new concealer provides coverage for up to 16 hours and is available in two shades. Maybelline New York has also launched a Matte Maker Powder foundation infused with lightweight blotting spheres which dissolve oil and work to instantly set make-up.

IMPERIAL LEATHER’S NEW BODY WASHES

PZ CUSSONS has launched a new range of Imperial Leather body washes which feature fragrances crafted by master perfumers. Encompassing four products - No 26. Summer Bliss (Mango & Frangipani), No. 37 Flirtatious (Pomegranate & Wild Rose), No. 30. Tahitian Retreat (Coconut & Sandalwood), and limited edition Exotic Guava & Champaca Flower variants – the range is soap free, ph balanced and dermatologically tested. Imperial Leather’s new body wash offering contains the brand’s signature triple moisturisers, delivering a rich and creamy lather. Featuring eye catching packaging, the range aims to set the standard in bathroom luxury. The shower gel/body wash market is fast growing with growth well ahead of total supermarkets at 5.4% (Aztec MAT 18.05.14). PZ Cussons predicts its new range will add significant category growth to the market and contribute to growth being driven by the company’s Original Source brand. Original Source’s body wash range has recently been extended with the launch of a limited edition Pink Grapefruit variant. The current offering of seven fragrances will be added to over the next year, significantly increasing overall category growth. Both the Imperial Leather and Original Source brands are being supported with significant sampling programmes over the next 12 months with more than 75,000 samples targeted for distribution on each brand. For more information please contact your James Crisp representative.

ADRIANA LIMA RETURNS TO MNY

L’OREAL’S Maybelline New York label has announced the return of Brazilian supermodel Adriana Lima to the brand. Lima was a global spokesperson for Maybelline New York from 2003 to 2009, and will rejoin a host of famous current spokeswomen including Christy Turlington, Jourdan Dunn and Emily DiDonato. With the world’s largest social media footprint of any fashion model online, Lima has graced the covers of Italian, Turkish, Spanish and Brazilian editions of Vogue. “It’s wonderful to be a part of the Maybelline New York brand again. I am proud to say I am a Maybelline girl, and I look forward to the work we will do together. The imagery is always beautiful and positive which is what I admire most about the brand,” she says. Lima will make her Maybelline New York return in print and TV advertising campaigns summer 2015.

SCHWARZKOPF LAUNCHES MIRACLE OIL

SCHWARZKOPF’S Extra Care brand has introduced 6 Miracles Oil Essence; the first 6-in-1 miracle oil for beautiful hair. Formulated with the essence of Argan, Pequi, Marula and Monoi oils, 6 Miracles Oil Essence provides heat protection, deep nourishment for total repair and reduces split ends for healthier hair. Known for its numerous health benefits, oil has become the go-to ingredient for beauty products with Schwarzkopf’s new offering designed to soften and condition hair, while also promoting a silky suppleness and brillant shine.

INNOVATIVE MASCARA

L’OREAL has launched the first double-ended mascara from its Maybelline New York brand. Volum’ Express Falsies Big Eyes Mascara features a top brush with a thick spiral end for maximum upper lash volume while a mini-brush fills the lower lash without flaking, smearing or smudging. Maybelline is the number one mascara brand in New Zealand with its new product already being well received internationally, especially by retail giant Walmart. The brand has also added to its Big Eyes family with a doubleended black and white eyeliner. The dual pencil allows for the black tip to be used for definition while the white tip can be applied to the inner waterline to open up the eyes.

NEW MAKE-UP LINES

FROM Maybelline New York this month comes two new eye cosmetic products - Master Kajal Liner and Color Tattoo Pure Pigments. Master Kajal Liner is offered to retailers in a cream stick formula and is infused with

oriental oils for bold and defined lines. Color Tattoo Pure Pigments are highly concentrated colour-boosting pigments which contain a crease-proof and long lasting formula. The brand’s number one eyeshadow, Expert Wear Quads Eyeshadow, has been refreshed with its new look packs providing great stand out on shelf. L’Oreal’s Maybelline New York brand has also released Eye & Lip Make Up Remover which contains a bi-phase formula to remove heavy make-up without harsh rubbing. The dermatologist and allergy tested product breaks down eye and lip make-up without leaving a greasy residue.

MNY NAIL POLISH COLLECTIONS

TWO new nail polish collections have been added to L’Oreal’s Maybelline New York portfolio. SuperStay has launched 7 Days Gel Nail Polish which uses a breakthrough gel resin formula enriched with calcium, iron and silica for nail strengthening. Its wide paddle brush ensures easy application with its unique formula not requiring a heat lamp to set. The brand’s Color Show offering has released a limited edition range of nail art designs in four shades called Limited Edition Street Artist. The Color Show nail polish offering has also been extended with a slew of new colours joining the collection. Saturated with high intensity pigments, the new shades feature a chip-resistant formula and easy flow brush for smooth application. n

supermarketnews.co.nz

I 23

LIQUOR

WISE OWL HITS MARKET VILLA Maria has launched its new Wise Owl brand to market with the range including blended Hooting White, Parliament Pinot Gris, Swooping Sauvignon Blanc, and Ruffled Merlot. Available nationwide, the brand’s pinot gris collected a best in class award at the recent Gisborne Regional Wine Awards. “The win on debut shows that while the wine is fun and affordable, it’s not at the expense of quality,” says

brand manager Emily Camblin. Featuring distinctive labels, Wise Owl’s landmark wine is Hooting White, a white wine blend that reflects the growing trend internationally. Camblin says blended whites make up 20% of white wine consumed by core wine drinkers in the US. “Blending gives winemakers the opportunity to use lesser-known grape varieties alongside some established types to create something unique in terms of body and flavour,” she says. n

CONSTELLATION GROWS BRANDS

CONSTELLATION Brands is Michael Rielly’s first foray into the liquor industry with his extensive grocery background including stints at both SC Johnson and SCA Hygiene. At the wine company for just over a year, Rielly is Constellation’s trade marketing manager and represents high profile brands including Selaks, Kim Crawford, Monkey Bay, VNO and The Peoples. Rielly says Constellation is one of the strongest players in the category with 11.7% value share MAT of total bottled wine and is one of the few in the category that is currently in growth. “We’re very active in growing our brands and supporting our customers in the market through tastings, promos and events as well as creating occasions like Selaks Roast Day to keep brands growing, which is a fantastic and probably the best crosscategory initiative around” says Rielly. Rielly says it is difficult to add value to products in an environment that is price competitive, with heavy discounting within the category changing the way consumers purchase wine. “Future wine discounts are unlikely to be as big as they have been with the changes to the liquor supply act, however we are seeing an increase in a base sales.” Rielly says low alcohol is a growing segment, which has kicked off in

MICHAEL RIELLY

New Zealand and is being driven by Constellation. “Low alcohol is giving us good growth and is currently worth 2% of the total wine category. Constellation has a 72% share of this market.” The company is adding to its low alcohol offering this month, launching Monkey Bay Simply Lighter. Selaks Reserve Syrah, Kim Crawford Reserve Merlot and a new Vino Merlot will also join Constellation’s portfolio in July. Focused on continuing to manufacture and produce quality New Zealand wines, Rielly believes Constellation is well positioned to continue its success locally and globally with market leading brands like Kim Crawford already being well received by both the US and Canadian markets. n

New catalogue now available. Come and see us at the Foodstuffs Expo.

COWLEY SERVICES ARE PROUD TO ANNOUNCE THE RELEASE OF OUR NEW PRODUCT CATALOGUE. To find out how we can help you, call us on 0508 232 1338 or visit our new website at www.cowleyservices.co.nz

July 2014

MORE WOES FOR TWE FOLLOWING a host of write downs last year, Treasury Wine Estates has revealed it will book in a $260 million impairment charge in its 2014 fiscal year. The announcement comes on the back of an Australian Federal Court case involving more than 600 shareholders over the late disclosure of a $190 million write down last year. CEO Michael Clarke says the company will restructure, with its current business model failing to reflect TWE’s outstanding capabilities, brands and people. “We have already taken significant steps to reset consumer marketing investment, our cost base and business model, and over the coming year we must fully realise the benefits of these changes,” says Clarke. The company last month rejected a $3.05 billion takeover from KKR. n

www.supermarketnews.co.nz

LNZ001 KimberlyClark 157x210.indd 1

LOCAL ALCOHOL POLICIES PART 2:

Where is the priority treatment for areas of priority harm? THE Sale and Supply of Alcohol Act 2012’s main objective is to ensure alcohol is supplied and consumed responsibly and to minimise the harm caused by excessive consumption. A key driver of the reforms was to respond to local communities’ calls for a greater say on alcohol issues in their backyard. Local Alcohol Policies (LAPs) were devised as the answer to let Councils determine their own rules around licence numbers, density of outlets and opening hours in their territory. Councils have the ability within their LAP to split their territory into sub-territories with Auckland Council opting for two Broad Areas and a priority overlay. Broad Area A is the CBD (including Newton and Ponsonby Road) and Broad Area B is everywhere else. The priority overlays are specific locations where there are identified high levels of alcohol related harm and clusters of people who tend to be most affected by this (typically lower socio-economic demographics). All good so far – makes sense to place increased controls in areas most in need. But here is where it falls down – rather than place increased restrictions on those in the priority harm areas, instead they brought the bar down for everyone (excuse the pun).

If you are an on-licence operator in a priority harm area the only material difference is that you will never be eligible for “good operator” extended opening hours. Effectively you are treated the same as if you were in any neighbourhood centre. If you are an off-licence operator (be it of a supermarket or liquor store) you are treated exactly the same as if you were in the CBD and the only difference between being in a priority harm area and being anywhere else (outside the CBD) is that there is a two year freeze on new licences as opposed to a presumption that you won’t get a licence. So you go from ‘you probably won’t get a licence’ to ‘you definitely won’t get a licence’, when the reality is the amenity and good order test in the Act already means you are extremely unlikely to get a licence anyway. I think a real trick has been missed here that is essentially pulling the industry down to the lowest common denominator rather than allowing sound operators to conduct their business responsibly. Wouldn’t it have made more sense, for instance, not to have a ban on new off-licences except in the priority harm areas? If RTDs or even single bottles are an issue in these areas why not seek

to impose the controls there alone as opposed to throughout the whole city? By not treating priority harm areas sufficiently differently from everyone else this is the result – everyone gets taken down a peg. The Auckland Council have to be commended for trying to target alcohol related harm by calling out the areas that need the most focus. I just wish they then acted on it without dragging everyone else down accordingly. We want to see a diverse and vibrant Auckland with a safe and sociable hospitality scene that allows quality offerings to flourish but that does not tolerate those who abuse the law. What do you want to see? Submissions are open now until 16 July at www.shapeauckland.co.nz. If the check box forms do not give you sufficient space to express your view, make sure you complete the comments box at the end or just write your own form of submission. n

Matt Wilson Corporate Relations Manager DB Breweries Limited

13/11/13 supermarketnews.co.nz

I 25

12:14 pm

NEW

NEW KERATIN HAIR RANGE

SIERRA IN GROCERY

AS one of New Zealand’s pioneering coffee brands, The New Zealand Coffee Company has introduced its Sierra foodservice offering into the retail sector. Roasting coffee for over 22 years, Sierra’s retail range contains three variants - Fair Trade Organic, Roasters Blend and Decaf- which are available in whole bean, espresso and plunger grind. Made with premium 100% Arabica beans, Sierra’s range is being sold in 200g packs. “Over the past few years we’ve enjoyed steady, sustainable growth through our café network and business isn’t slowing down. It was time for us to bring one of New Zealand’s original coffee brands to the New Zealand consumer in a take home form via supermarkets,” says general manager Pete Campbell. n

UNILEVER has introduced an innovative hair care line from its Tresemme brand. The 7 Day Keratin Smooth System is comprised of a shampoo, conditioner and heat activated treatment and works to achieve frizz-resistant, smooth and straight hair. Containing a non-damaging formula, Tresemme’s new heat activated treatment uses breakthrough Thermal Technology which is activated by the heat of a flat iron. The brand’s shampoo and conditioner are both sold in 250ml bottles while its heat activated treatment is offered in a 120ml pack. n

SALAMI SNACK PACK RANGE

NEW SPARKLING WATER

NZ DRINKS has released two new Lightly Sparkling flavoured spring waters in Lemon & Lime and Berry options. Available in 500ml bottles, these beverages contain zero sugar and are low in calories. n

YEO’S RENDANG PASTE IMPORTER Oriental

Merchant has launched Yeo’s Rendang paste in a 180g jar. The authentic product is an easy three step marinade and cooking sauce which allows consumers to make a traditional Malaysian style stir-fry at home. Yeo’s Rendang paste serves four and is certified gluten, halal and dairy free with no added preservatives. n

SALT SOLUTION

A SODIUM replacement solution providing an alternative to salt is now available in the retail channel. Nu-Tek salt, distributed by Profile Products, is a natural mineral salt (Potassium Chloride) that has been produced using a patented technology from the USA. The product doesn’t have the bitter metallic taste normally associated with potassium chloride, is all natural and functions and tastes like regular salt. n

July 2014

PEANUT BUTTER CHOC LINDT Lindor has increased its premium chocolate offering, releasing a limited edition Peanut Butter variant. A delicate balance between the intense richness of peanut butter and smooth melting milk chocolate, Lindt’s new addition is available in a 125g stand-up pack. Lindt is handled in New Zealand by DKSH. n

NEW RICE BRAN OIL

BLISS Rice Bran Oil is a newcomer to the New Zealand market, offering a top quality product at a competitive price. Imported by William Aitken & Co, Bliss Rice Bran Oil is versatile with a high smoke point and light flavour. It is also cholesterol-free, a good source of vitamin E and contains 8000ppm of gamma-oryzanol, the plant sterol that gives rice bran oil its key health benefits. n

LASCO Salami has released a new healthy protein 25g Snack Pack range with each pack containing eight slices. Ideal for lunchboxes, Snack Packs are cost effective, avoid waste and are available in four flavours – Marlborough Garlic, Italian New York Cut, Pepperoni and Kaitaia Fire. LASCo’s range is 90% fat free, gluten, soy, dairy and pork free and is low in sodium, saturated fat and cholesterol. n

PURELY GREEK

WILLIAM Aitken & Co has introduced Nefeli Extra Virgin Olive Oil Purely Greek to New Zealand. The product hails from the prefecture of Chania on the island of Crete, where olive trees have been cultivated since 3000BC. This extra virgin oil is cold-pressed from locally grown Koroneiki olives and is certified as PGI (Protected Geographical Indication) Hania Crete. n

HONEY NUT NATURALLY CRUNCH SLAB SWEET A NEW health drink sweetened with an alternative natural sugar is now available from Profile Products. Stevianna carbonated health drinks are available in a range of flavours – Ginger Beer, Lemon Crush, NZ Blackcurrant and Apple. The product contains stevia, a natural sweetener consumed by natives in Brazil for centuries. It is known to have an impact on diabetes, obesity and high blood pressure. Stevianna drinks will be launched at this year’s Food Show 31st July – 3rd August. Visit the stand at Hall 1, Stand Q27. n

NEW SYRUP BRAND

SHOTT Beverages has expanded its cordial offering, introducing a new coffee syrup and fruit tea brand called Quarter Past. The coffee syrup range encompasses Hazelnut, Caramel, Vanilla and Sweet Chai variants while Blueberry & Green tea, Lemon Ginger & Honey and Orange & Lemongrass make up the fruit teas. Designed for grocery, the Quarter Past brand moves away from Shott’s traditional bottles and features a compact, low-height design. Packaged in plastic bottles with a glass appearance, the fruit teas contain 50% fruit juice. n

WHITTAKER’S has added to its market leading range of nut chocolate with the launch of Honey Nut Crunch Slab. Made from 33% cocoa milk chocolate, Honey Nut Crunch Slab is a mix of honey-coated roasted whole peanuts and Manuka honey flakes. Whittaker’s has the largest range of nut chocolate in New Zealand with its seven varieties all made using whole nut ingredients. “We’re obviously very proud of the success of our Peanut Slab, and the fact that they’re commonly referred to as a Kiwi icon, so we’ll never change that recipe. At the same time, we’re an expanding company that’s constantly looking to innovate – Honey Nut Crunch is a delicious new variation on one of our all-time greats,” says Holly Whittaker. Available in single 50g slabs and multipacks, Honey Nut Crunch features new look packaging which will be rolled out across the whole slab range, the first change to slab wrappers for 30 years. n

Drive sales with new Mentos gum flavour innovation Pure Fresh Lime Mint tin! Contact your DKSH New Zealand Limited representative for more information. supermarketnews.co.nz

I 27

NEW US CANDY BRAND LAUNCHED MONDELEZ has introduced one of the most popular US candy brands to New Zealand this month. Sour Patch Kids delivers a dual flavour experience – sour then sweet – and will be backed with a $1.5m advertising campaign across TV, digital and experiential. Targeted at 15-24 year olds, the Sour Patch Kids range is available in Original and Soda Popz variants and is being offered in two pack sizes – 170g and 65g. n

ORB MOVESINTO RETAIL CEREBOS Gregg’s is taking its super premium Orb Coffee brand into grocery this month. Available through foodservice for the past 10 years, the Orb Coffee ranges are based on two famous coffee growing regions – Morobe from Papua New Guinea and Yirgacheffe from the highlands of Ethiopia. Both ranges offer a single origin plunger & filter grind, a blended espresso grind and a blend of beans. Morobe delivers chocolatey and nutty flavours while Yirgacheffe is a lighter, more flavoursome coffee with blackberry flavours. Fresh coffee is growing in the retail sector, driven by coffee capsules and the premium end of the category. Orb’s approach in retail has been to develop a range that delivers a great product for consumers while educating them on what it takes to make a great coffee. “When developing these products we’ve started at the source, carefully blended and then roasted to exacting standards to bring out the very best in the bean and the blend – hence the names Yirgacheffe and Morobe,” says brand manager Sean Wiggans. n

MISS BIC LAUNCHED

BIC, the market leader of branded pocket lighters, has introduced its newest lighter brand. Miss BIC has been created to fill a gap in the female lighter range and is being backed by the largest trade programme to date. The Miss BIC lighter range is available in a set of three collectable graphics – Make-up, Pink Bows and Laces – and recognises the importance of the impulse purchase to retailers. Incorporating new technology, Miss BIC lighters feature a slim body design, which contours to the hand more comfortably, and appealing design wraps with a metallic look. The brand offers retailers a higher profit margin, when sold at the RRP, and striking POS displays are on offer. With more than 40 years experience, BIC has been the most innovative lighter manufacturer in New Zealand and is a trusted leader in quality and safety assured products, which match or exceeds ISO 9994. The Miss BIC range is available to retailers from this month. n

LIME MINT GUM

MENTOS continues to innovate and drive growth for the every day fresh breath segment of the gum category, launching the brand’s latest sugarfree gum flavour in a convenient tin format. Mentos Pure Fresh Lime Mint contains green tea extract and joins existing Spearmint and Freshmint variants. Mentos is handled locally by DKSH New Zealand. n

July 2014

WAITOA GROWS FREE RANGE

INGHAM has launched two new free range skus from its Waitoa brand. Boneless Chicken Kiev and Boneless Chicken Cordon Bleu are made with premium New Zealand chicken and are lightly coated with a golden panko crumb. Boneless Chicken Cordon Bleu contains a ham and cheese core while Boneless Chicken Kiev features a garlic butter centre. Since launching New Zealand’s only frozen free range convenience

line (Green Box) in 2012, Waitoa continues to lead the way in free range innovation, bringing attention and new purchasers to the freezer. Ingham will highlight the selection of choice available in free range with media advertising and promotion support for its new products. The new additions complement Waitoa’s existing range of Nuggets, Original Tenders and Ancient Grain Tenders. n

NEW LEGGO’S PESTO SIMPLOT has introduced two new products to its offering with the launch of Leggo’s Pesto in Traditional Basil and Sundried Tomato variants. Made to a traditional recipe and ready to use straight from the jar, Leggo’s Pesto adds richness and intense flavour to a variety of dishes. The new products can be stirred through pasta, used as a sauce on grilled steak or fish, or spread on crackers. The Leggo’s brand offers products made with 132 years of commitment to quality ingredients and encompasses pastes, simmer sauces and bakes, puree and now pesto. n

DONOVANS KIWI CHOCOLATE

NEW FRUIT STICK

MOTHER Earth has increased its wrapped snacks portfolio with a new flavour joining its popular Fruit Sticks range. Apple & Peach Fruit Sticks are 97% fat free and contain real fruit and wholesome ingredients, making them an ideal lunch box addition. Sold in boxes of eight bars, the Fruit Sticks range contains no artificial flavours or colours and features refreshed packaging with zoo character animals. Apple & Peach joins existing Fruit Stick flavours including Apple & Strawberry, Apricot and Blueberry. n

PROLIFE’S Donovans brand has added to its premium chocolate range with the launch of Strawberry Pavlova Milk Chocolate. Donovans take on the classic Kiwi dessert contains pavlova pieces and strawberry flavour, delivering the sweetness and crunch of a traditional pav. The new addition is offered in 100g bars and joins the brand’s existing range of innovative flavoured bars including Chilli & Lime Dark Chocolate and Feijoa Milk Chocolate. n

AriZona Iced Tea is brewed using nothing but 100% natural ingredients of the highest quality, with no artificial flavours, colours or preservatives. 500ml PET available in 6 delicious flavours: Peach, Lemon, Pomegranate, Blueberry, Green Tea and Diet Green Tea. Centurion Sales Representative Brett Hayde, phone 021 444 772 brett.hayde@centurionsales.co.nz

productwatch

Convenience Enquiries Chris Bhimy, phone 021 989 441 chris@bestbeverage.co.nz

*MAT US dollar sales to 31/12/13, Source www.statista.com

HANDMADE, PURE NZ BEEF SALAMI New Zealand’s Healthiest Salami

• 90% Fat Free • Dairy Free • Gluten Free • • Soy Free • Pork Free • Low Sodium & Cholesterol • • No gelling agents, emulsifiers or fillers •

✔ Authentic Malay Rendang Paste ✔ A tasty stir fry meal for 4, in just 30 minutes ✔ Certified Wheat & Dairy free with no preservatives ✔ Full English labelling with recipe ✔ Halal

productwatch

New products e and venison rang now available

Rendang Paste

For more information on Yeo’s Rendang Paste contact:

For more information contact 07 5725521 or 0508 4LASCO or vist www.lascosmokehouse.com

ORIENTAL MERCHANT (NZ) LTD Tel 0800 10 33 05 Fax 0800 10 33 11 Email: nzenquiries@oriental.com.au Website: www.oriental.com.au

supermarketnews.co.nz

I 29

productwatch

All our products are handmade in New Zealand

productwatch

cereals • biscuits • snack bars • slabs Ravioli Grandes are a unique range of products from Delmaine using a double sheet pasta system with larger pockets and thinner sheets of real egg pasta to create a tastier ravioli. See the full range at www.delmaine.co.nz

NEW LINDOR PEANUT BUTTER

productwatch

The Rooiberg Range Of Wine Is Now Available In Nz.

Red Chair Low Alcohol Low Carbs Sauvignon Blanc

Rooiberg Merlot Reserve

Contact

July 2014

DKSH NZ Phone 06 356 5323

Rooiberg Non-alcoholic Grape Juice

Rooiberg Sparkling Brut

Rooiberg Chardonnay

Rooiberg Chenin Blanc Rooiberg Cab Sav

Rooiberg Chiraz Reserve

Rooiberg Sauvignon Blac

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

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Savour the delicate balance between the intense richness of peanut butter and the smooth melting milk chocolate. When it comes together on the tongue in perfect harmony it’s a sensorial triumph. Available from selected stores for a limited time.

www.puredelish.co.nz

THE DIFFERENCE BETWEEN THE GOOD AND THE BEST

By Jasmine Walters

www.supermarketnews.co.nz

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.

TAHA BEVERAGES TAHA Beverages manufacture and market a unique soft drink which combines Asian and Maori herbal ingredients. Made with all natural ingredients including organic ginger beer, sustainably picked kawakawa, manuka honey and pure New Zealand water, Taha’s sparkling tonic has been specifically designed for the grocery sector. Available through Foodstuffs for the past year, the company is currently in negotiations for its product to be ranged through Countdown stores. The brainchild of Simon Harman, who previously created the Taakawa beer, Taha is described as a craft soft drink with mass appeal. “Taha tastes like old fashioned ginger beer your mother used to make but the kawakawa provides a clean and refreshing taste on the palate,” says Harman. Originally available only in single bottle format, Taha Beverages has recently introduced a multipack option which has been well received by both retailers and consumers. “We launched the product in a four pack to meet customer demand and provide people with more choice,” says Harman. Contract manufactured by Steam Brewing in Otahuhu, the company is currently brewing 5,000 litres at a time but is about to increase production to 10,000 litres in order to meet supply. Harman has been carrying out in-store tastings, with sales increasing dramatically following sampling. “Tastings are the only real connection a manufacture has with its customer base.” Despite only being on the market for 12 months, the company is already exporting the product overseas, with its indigenous packaging proving popular in international markets. New products are currently in development with the company focused on providing quality low sugar options. For more information please visit www. tahabeverages.com

COCO’S COCONUT COMPANY FOUNDED in June last year by Grier Govorko and Steve Gilberd, Coco’s Coconut Company are producers of New Zealand’s first coconut water brand. Coaqua is a 100% pure coconut water which has a

sweeter and fresher taste than other brands on the market and is already stocked by Farro Fresh. Govorko says the age of the coconuts used affect the quality and flavour profile of the product with many coconut waters manufactured with old coconuts which are then pasteurised twice. “We let the taste do the talking as far as superiority of flavour. We are one of the few coconut water brands that chose glass bottles as the carrier and as such puts Coaqua in the upper tier amongst its peers,” he says. Govorko, former production designer for Red Hot Chili Peppers, thoroughly researched the global coconut water category, speaking to former employer and RHCP front man Anthony Kiedis who had invested in pioneer US brand Vita Coco. “We tasted every brand of coconut water we could and saw that all the competitors were copying Vita Coco or were positioning their brands as sports hydration alternatives,” says Gorvorko. The company’s Coaqua product has attempted to recreate the fresh coconut water taste of South East Asia, where both Govorko and Gilberd have lived. Produced and bottled at source in Southern Vietnam, coconuts are sourced in the Mekong Delta region before being harvested by small scale farmers. Gilberd says grocery and export markets are growth areas for the Coaqua brand, with its coconut water currently sold into both the US and China. “We have several new flavours in development, although are working firstly to establish the primary 100% pure product in the marketplace,” says Gilberd. For more information please visit www.coaqua. co.nz

spicy fennel, sweet fennel, chorizo and toulouse. The entire range is manufactured on site at its Hoteo North factories, which Scopas purchased with his wife in 2006. The Hoteo North location is also home to an olive grove and olive press. “We represent true quality, we use only the best ingredients we can buy and do not use off cuts (we use the whole pig). We do not use preservatives or fillers and buy our free farmed pork off one supplier, Murellen Pork,” says Scopas. The brand collected the Supreme Cuisine Artisan award in 2009 for its sweet fennel sausage and its Toulouse sausage was a winner in 2011. Scopas says consumers are driving the artisan trend. “Discerning people want real quality, pure food, and they want to know who is making the product, what is in it and where the ingredients are sourced from,” he says. The company is looking to export its cold pressed extra virgin olive oil, with an order already underway. For more information please visit www. salumeriafontana.co.nz

SALUMERIA FONTANA Salumeria Fontana manufacture a range of hand made pork sausages in seven variants For more recipe ideas visit as well as an extra www.omegaseafood.com virgin olive oil under the same brand. No fuss • Great Taste Established in 2000 by Greg Scopas, • No Additives the company’s • Super Healthy range is currently • Super Easy Ready to heat or eat stocked in six Kiwi supermarkets with New World trials being a real success for the brand. A pork and leek sausage is set to add to Salumeria’s email jo@omegaseafood.com existing smallgoods or contact your local Independent Fisheries Representative. offering of mantova,

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finefoodshow

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Peter Mitchell

IT’S interesting that the ACCC in Australia investigating the prosecution of Coles for allegedly bullying suppliers had to promise suppliers that it would protect their confidentiality as the only way to get information. But dozens of the country’s best known brands including Nestle, Red Bull, Procter & Gamble amongst many others, have been named publicly in the statement of claim filed in the Federal Court. Our own Commerce Commission has also promised confidentiality if suppliers would speak up in the Countdown issue. Hope everyone feels confident this will happen – because I don’t. I FOUND it very hard getting over my addiction for that dance craze, the Hokey Cokey. But I’ve turned myself around and that’s what it’s all about ! INDEPENDENT local grocers in Australia believe that Aldi’s aggressive expansion will have a significant effect upon their viability. Aldi has announced it will expand from its current 350 stores to 800 in a new programme to flood the bottom end of the market – a sector that is more than a little vulnerable in this country. I never did understand why the Foodtown owners here at the time, killed off the 3Guys operation that could easily have been an Aldi in the making and protected the bottom end of the industry. NO matter what is said, there is a real danger that the introduction of product health ratings in a number of our categories could be totally misconstrued and cause serious damage. An example is in Australia where the consumer organization Choice has slapped nutrition ratings on 265 popular children’s snacks using the Government’s new health star rating calculator. Some of our own products

July 2014

exported across the Tasman such as Mother Earth and Nice & Natural have all been labeled far from healthy under the system – and these are promoted as healthy eating. LOTS of retired supermarket operators around these days. Loved the story about three of them out walking. The first one said: “Windy, isn’t it ?” Second one said:”No it’s Thursday.” Third one says: “So am I, let’s go and get a beer..” FOR those not old enough to remember, it is now 40 years this month since the first grocery item was scanned using a barcode at a retail location. In fact the first item was a packet of gum at Marsh’s Supermarket in Troy, Ohio. Although barcodes were invented in the late 1940’s, the technology to read them didn’t exist and it was the supermarket industry that moved the idea forward. Beep, beep ! WHILE last month’s Fine Food show in Auckland was again a solid success, the major emphasis this time seemed to be on foodservice and the hospitality sector with little to attract the supermarket folk. Admittedly there were a couple of Foodstuffs people and two PnS sent a small staff contingent. That was a shame because there is no independent show for our retailers what with Foodstuffs and Countdown both running their own trade events, very successfully I might add. For the current supermarket suppliers, and mainly in the artisan category who did exhibit, it was more an opportunity to develop their foodservice business. AND a gloomy note for suppliers following the latest report on the state of the Australian grocery industry for the Food & Grocery Council. It showed that $1 in every $4 earned by

suppliers went back to retailers in discounts, rebates and promotions. It also showed that Australia now has the highest food manufacturing costs in the world – an interesting point when we consider the high level of Australian imports on our shelves here. The report showed the tough market conditions where suppliers were squeezed between the unstoppable force of dominant retailers and the immovable object of high labour, utility and regulatory costs. FOR a final bit of fun, it takes your food seven seconds from mouth to stomach. A human hair can support three kg. Human thighbones are stronger than concrete. An average penis is three times the length of a man’s thumb. There are about a trillion bacteria on your feet. Your body uses 300 muscles to balance when you are standing still. Women reading this will be finished by now. Men are still busy checking their thumbs.

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