SupermarketNews // August 2014 by Review Publishing Ltd

9.95

August 2014 • Vol. 7 No. 8

“Utilising the specialist services of an outsource sales and marketing agency is becoming a viable option…” Rachel Clayton, chair of the Food & Grocery Council’s SMA Working Group. (pg 20)

IT’S A WAIT AND SEE SITUATION OVER A GROCERY ADJUDICATOR THE grocery industry is waiting with bated breath for the upcoming election and the outcome of the Commerce Commission’s current industry investigation as to whether an ombudsman or adjudicator might be appointed. But there is little doubt there will be some action on this matter So far, no political party has walked away from the situation but all of them have similar but varying

opinions. And while it probably will have little effect on the political outcome, the Food & Grocery Council is seeking member opinion on the issue. The National Party and its present government, that looks likely to remain in power, is reasonably noncommittal on the issue. Commerce Minister Craig Foss told Supermarket News that the Commerce Commission was currently conducting a thorough

investigation into allegations of anti-competitive behavior in the supermarket industry and the outcome was awaited.. “No decisions have been made and I have not ruled anything out. It would be premature to do so before the Commission issues its findings,” he said on the matter of a grocery industry Code of Conduct. The Greens, who would have a powerful voice inside a Labour coalition, are strongly in favour

CRAIG FOSS

MOJO MATHERS

of an independent supermarkets adjudicator who would be tasked to work with the industry to develop a mandatory Code of Conduct. The Labour Party is even stronger on the issue with Commerce spokesperson Clayton Cosgrove saying any code must be mandated through legislation and be enforceable and that it could not be voluntary. The Food & Grocery Council is certainly aware of the political attitudes towards a Code of Conduct but hasn’t formally considered the possibility of a Member’s Bill coming forward. But it is an issue they certainly will be looking at over the coming months. continued on page 2

KIWI HEADS WALMART US NEW Zealander Greg Foran, who began his career packing shelves in a Hamilton supermarket, has been named the new president and ceo of Walmart’s US division, taking up the role this month. The 53-year-old who has had roles in Foodtown here and Woolworths in Australia, joined Walmart in late 2011 and five months later was named ceo of Walmart China and later headed up the entire Asian division of the company. He went to Walmart from his Sydney-based role of managing director of supermarkets, liquor and petrol at Woolworths. Earlier had been general manager of Big W. Walmart’s top man, Doug McMillon, said Foran was one of the most talented retailers he had ever met. For those younger ones who don’t recognize Greg, they might be more familiar with his Kiwi league star son Kieran who plays for Manly. n

CLAYTON COSGROVE

STAYING MUM ON BREAD DISCOUNTING OUR big New Zealand plant bakeries are staying quiet and refusing to comment on the current bread war that has erupted between Countdown and Foodstuffs. Consumers are having a great time snapping up housebrand white wrapped bread at a dollar or less from both Countdown and Pak’nSave nationally but local suppliers with the contracts are saying the matter is one between suppliers

and the retailers and no comment will be made on the specifics. Admittedly the rockbottom discounting is only on one specific bread type although the promotion from both makes it appear much more widespread across the category. No figures are available on the popularity of this bottom of the market product but it seems from trade talk that the volume

is not huge although very promotionable in the ongoing battle between the two companies. The big question many other suppliers are asking is how can a loaf of bread be made, delivered and retailed, giving everyone a margin, for under a dollar. Whatever the answer is, it’s a great promotion with everyone playing in this plain-pack game. n

contents 6 Whittaker’s Most Trusted 12 Liquor 14 Global Retail Trends 20 SMA Feature 26 New Products After

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editorialcomment

Let The Competitive Sport Continue

WITH an election just around the corner, it seems the politicians of all ilk are still wanting to clobber the supermarket industry, especially in the area of taxes and in-store pricing. I’ve not seen one positive comment from the politicians in the past year on just what a great job our supermarkets (and that’s both of the big names) are doing on holding prices down – only that they are screwing suppliers. So they want buyers at Foodstuffs and Countdown to let up on suppliers, raise prices across the board and pay the likes of fat taxes. That’s certainly great for the consumers out there being made to pay more for everything – the majority of kiwis would certainly support that sort of programme – NOT ! The politicians just have to get it right and support the supermarkets for doing a great job. They certainly have got inflation beaten and they can’t be blamed for what is said to be an obesity crisis. Most smart suppliers who are fast on their feet are doing alright although it is tight in some categories. Both supermarket groups are certainly delivering the goods on pricing, perhaps not so much in the fresh produce area, but overall the competitive thrust between the two of them is all around pricing. And the consumer is the huge winner. The concept of politicians and the health gurus wanting to force prices up because they think they are appeasing someone, is sheer stupidity. They should just let the competition continue at retail for the consumer and at trade level for the business. PETER MITCHELL, Publisher

Walmart Rumours

RUMOURS have been rife in the grocery industry that US retail giant Walmart is looking to buy the Woolworths group in Australia. While unsubstantiated, and not through any lack of digging on my part, a US acquisition of one part of Australia’s grocery duopoly would certainly make waves for our domestic market. The potential purchase would significantly increase the buying power and capital of the Woolworths owned Progressive Enterprises while also opening doors for Kiwi suppliers to lucrative offshore markets. Over the past year, Countdown has increasingly moved towards the Australian model, with more general merchandise and apparel landing on our shelves. Likewise, Woolworths has many similarities to Walmart, especially with its Big W stores. This month, we take a look at sales and merchandising agencies. Representing around 7% of New Zealand’s sales to market, SMA’s are an increasingly popular choice for brand owners looking to outsource. If you’re not already receiving our weekly newsletters, you can sign up on our website - www.supermarketnews.co.nz. As always, if you have any new products, company news or appointments feel free to give me a call on (09) 304 0142 ext 713. Have a successful month. JASMINE WALTERS, Editor

continued from page 1

sndiary

A GROCERY ADJUDICATOR? Labour’s Cosgrove said there was a major news story rumbling about supermarket practices and he felt any Code must be mandated through legislation and be enforceable. “It can’t be voluntary as you will not get suppliers and others

AUGUST 13-14

Foodstuffs Expo, Westpac Stadium Wellington

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NZACS Industry Awards & Jowett Scholarship, Crowne Plaza, Auckland

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Shopper Summit, Tamaki Yacht Club Auckland

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Brewers Guild Beer Awards, Wellington

SEPTEMBER 24-26 Global Coffee, Tea, Cocoa Expo Hamburg, Germany

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Café & Bakery Fair, Kintex, South Korea

7-9 OCTOBER

Juice & Beverage Annual Conference, Napier

19-23 OCTOBER SIAL, Paris

5-7 NOVEMBER

FGC Annual Conference, Queenstown

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Convenience Leaders Summit, Crowne Plaza, Auckland

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

“Labour’s preferred option is a compulsory governmentmandated code based on the UK model – a model which has teeth and can penalize offenders. If the Commerce Commission is unable to fix this problem, Labour will….” Labour’s Clayton Cosgrove.

raising complaints as there can be no guarantee of anonymity. Asking suppliers to complain to a body set up by those they are complaining about has no credibility or integrity,” said Cosgrove. “The best model is the UK Code of Practice. Labour is working on plans for a strong, enforceable Code for supermarket practices,” he said. The Green Party has backed the Labour approach saying it would establish an independent supermarkets adjudicator who would be tasked to work with the industry to develop a mandatory supermarket Code of Practice. This adjudicator would have the power to investigate and resolve breaches of the Code. The Greens consumer affairs spokesperson Mojo Mathers approach differed from others in that her party didn’t see the need to wait for the Commerce Commission outcome and felt it was clear that both an independent adjudicator and a compulsory Code of Practice was needed. “It is important that New Zealand growers, producers and small business have a level playing field when supplying supermarkets. At the moment, the two main supermarket groups have too much power and many suppliers

are fearful of speaking out against unfair practices,” said Mathers. She said the Green Party was committed to ensuring a fairer and more transparent system for

“Experience from the UK and Australia shows that voluntary Codes don’t work because there is too great an imbalance in power between the negotiating parties …” Green Party’s Mojo Mathers. New Zealand suppliers. Mathers commented that the issues were not new and it had been clear for years that the current system was not working. “New Zealand has one of the most concentrated grocery markets in the world and it’s failing many suppliers and consumers,” she said. 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

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HORNBY DC ON TRACK

RELOCATION of Foodstuffs South Island’s Papanui DC to Hornby is underway and is set to be completed by October. The new Hornby DC will span 32,200sqm and will have capacity for 43,000 pallets, significantly more than the existing 27,000 available in Christchurch. FSSI general manager supply chain, John Mullins, says despite the investment in Hornby, the company remains committed to the Dunedin RDC, which will be responsible for regional distribution of fast and medium moving products. “It’s a huge task transitioning distribution across from Papanui and Dunedin to Hornby. The whole process requires strong supplier input and communication and we have been working with our suppliers for some time to prepare for the AugustSeptember transition,” says Mullins. Further centralisation of split case picking will follow in March 2015 with continued systems development promising to improve the existing processes. A temperature controlled DC extension is planned on site and

more details on this will be revealed in time. “The benefits are significant to both our members and suppliers. Hornby promises to deliver a wide range of benefits including a reduction in the amount of order handling, transportation efficiencies, and improvements to order scheduling. For suppliers a DC that can handle slow moving goods, delivers a single point of contact and offers streamlined DC processes can only be a good thing. The more efficient we are as a business the easier it will be for our suppliers to meet their own business objectives.” FSSI purchased the 13 hectare Hornby ‘Greenfields’ property in February 2011 with construction at the site commencing last year. n

GRIFFIN’S SOLD FOR $700M KIWI biscuit and snack food

manufacturer Griffin’s has been sold for $700 million to the Philippines’ Universal Robina Corporation (URC),

almost double what Pacific Equity Partners (PEP) paid for it in 2006. The sale includes Griffin’s extensive snack portfolio encompassing the Cookie Bear, Gingernuts, MallowPuffs, Nice & Natural and ETA brands as well as its two world-class manufacturing facilities. URC has committed to continued local manufacturing and employment, planning to drive export growth which already generates over a third of Griffin’s current revenue. Griffin’s executive chairman Ron Vela says URC has also grown from a small, family-owned business to one of the largest food and beverage companies in the region. “The Griffin’s board believes the URC’s significant experience in developing its own export markets makes it the ideal partner to take Griffin’s forward as it embarks on this next exciting stage of growth,” says Vela. URC president and CEO Lance Gokongwei says Griffin’s is at the forefront of global consumer trends and complements its offering. “We believe Griffin’s is a natural strategic fit to our existing snack food portfolio given its strong brand heritage in New Zealand – a country trusted worldwide in having high credibility when it comes to food quality, safety and authenticity,” he says. The sale is subject to Overseas Investment Office approval with current COO Alison Taylor set to step into the role of CEO once approval has been granted. Vela has been retained as a consultant to the senior team at URC. n

Ron Vela

Alison Taylor

NW HAWERA TO GO

FOODSTUFFS North Island has announced it will close Hawera New World at the end of this month following a review of the long-term sustainability of the store. General manager property development, Angela Bull, says with three supermarkets in the town Foodstuffs felt it would be increasingly difficult to sustain both its Pak’nSave and New World stores. “Regular reviews are important to ensure we are in a strong position to provide a sustainable supermarket offer and employment opportunities now and into the future. Our commitment to the region remains strong and Pak’nSave will continue to serve Hawera and the South Taranaki district,” says Bull. The 32 full-time staff and 21 part-time staff will be provided with support to find alternative roles at other Foodstuffs stores. “While I’m disappointed New World Hawera will be closing, I understand the logic behind the very difficult decision Foodstuffs has made,” says New World Hawera owner-operator Rachel Clayton. n

ITS Cash Recyclers, an appealing investment Supermarket Owners, Management and Staﬀ nickname their ITS Cash Recyclers as they welcome the eﬃciencies – not to mention the friendly and reliable customer service provided by ITS.

What do ITS Clients have to say? Sam Cockroft, Store Manager Pak ‘n Save Albany ‘Reese’ has transformed the way in which we operate. The time spent handling cash in our cash office has been cut significantly. Shabnam Ali, Check Out Manager New World Kumeu ‘Vera’ makes it all so quick. It’s easy now as the controls are good. Just so much easier, just so much faster. Kerry Manson, Supervisor/Duty Manager New World Northwood Christchurch ‘Rod Stewart’ tells me exactly how much he is giving me. I’m no longer office bound and Rod is so easy to use. The ITS RCS machines must be really popular.

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August 2014

I 3

SI NEW WORLDS’ LOYALTY SCHEME

NEW Worlds in the South Island have introduced a new customer loyalty programme this month that gives shoppers the flexibility to collect Fly Buys or Airpoints as well as converting the points into New World dollars. This means the customers as New World Clubcard holders can receive discounts on supermarket brands or convert their New World Dollars into cash for up to $2000 a year. FSSI CEO Steve Anderson says this was only the start of the company’s plans for the New World Clubcard. “We are setting up a world class loyalty platform where our imagination is the only limitation. We will continue to innovate and develop unique and engaging ways to reward out customers,” he says.

WOOLWORTHS UPS ITS PRICES

ALDI CO-FOUNDER DIES

THE co-founder of discount Johnny Bass supermarket chain Aldi has died aged 94. Karl Albrecht and his brother Theo founded the retailer in 1946 with the company growing to span more than 10,000 stores throughout Europe and entering new markets further abroad. With a fortune estimated at $21 billion, Albrecht was Germany’s richest man and the world’s 35th wealthiest. Photography

KELLOGG’S PUSH NUTRITION

A SURVEY commissioned by Kellogg New Zealand has found 60% of families eat cereal and milk for breakfast, with a single serve providing up to 30% of a young child’s daily iron and calcium needs. “Research has found that children who eat cereal are also more likely to meet their nutrient requirements for the day,” says Kellogg’s brand manager Louise Scott-Davidson The survey of more than 300 Kiwi mothers with primary school aged children also revealed the nation’s changing eating habits with 20% of respondents’ children skipping breakfast once a week or more and 22% eating breakfast away from home at least once a week. The research coincides with Kellogg’s first branded campaign in New Zealand which includes a national TVC promoting cereal as a good source of calcium and iron, supported by in-store activation. Before

GROCERY prices on selected products on Woolworths online have risen by as much as 9% over May and June according to new retail analysis. The report suggested the rises had been made to boost margins offsetting weakness at both Masters and Big W. Other reasons suggested for the rises was that Woolworths was building a war chest for promotional pricing and to deal with Aldi’s expansion of branded products – raising the price of goods it didn’t have in common and lowering it on competitive products.

Synergy

Photography July 2014

SUPPLIER CONTACT WITH FOODSTUFFS STORES NOT POLICY THE “continuous improvement programme” promulgated to suppliers last month by South Island Halswell New World is not expected to be new policy for Foodstuffs around the country, despite the implication that supplier reps could no longer visit the store. Foodstuffs says the move was well intentioned but the wording of the memo to suppliers was not clear. In a later comment when queried, the store says it certainly wished to continue meeting with suppliers and it simply wanted requests for displays, in-store promotions, new lines and ticketing submitted electronically where possible to ensure the best results for both parties. The memo to suppliers said “an area of opportunity that we are currently looking at and trialling in multiple departments is the way in which we interact with our suppliers ….and we feel our current process does not deliver the results that it could for either of us…” The email from store manager Miles Mangos went on to say that all communication with the team should now be in email format and while suppliers were welcome to visit the store, all communication with any of the store team should be by email. A number of suppliers raised concern over the changed contact After

arrangements and were worried it may have signalled a new tack with Foodstuffs generally – but that concern has been squashed. n

NEW SYNERGY DIRECTOR Johnny Bass

FMCG recruitment specialist Synergy Consumer has appointed Johnny Bass as its fourth company director alongside Kevin O’Shannessey, Hamish Marr and Sara Clarke. In addition to the sales, marketing and category roles that Synergy specialises in, Bass provides expertise in supply chain and operations recruitment. Synergy will also work in close collaboration with new recruitment firm ProgressionHR. Established by HR recruitment specialists Kelly Wilson and Laura Burton, ProgressionHR focuses solely on human resources roles. n

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THE FOOD & Grocery Council’s annual conference is always the top event of the industry’s year for the hundreds of food and grocery supplier members who attend, and this year promises to be no different. The conference programme is really taking shape. We have managed to secure some excellent speakers so far, with the emphasis on educating and informing suppliers. Speakers secured for the conference so far include Silvestro Morabito, of Morabito Management Consulting, a former retailsector leader who has worked his way up from the supermarket shop floor to build a highly respected track record in Australia, Singapore, New Zealand and Indonesia; Rob Clark, the Managing Director of Nielsen, who will present the latest results from the retail barometer; Kevin Malloy, the Chair of VivaKi Australia/NZ, who oversees the global Procter and Gamble and Coca-Cola advertising accounts for Starcom MediaVest Group, the world’s biggest media planning and buying advertising and marketing agency; Mike Wilson, the Head of Digital Engagement at Vodafone, who has delivered digital campaigns for some of the world’s biggest brands. The former boss of Coles in Australia, Ian McLeod, who led the supermarket group for more than five years and helped turn it around when it was struggling against its main competitor, Woolworths, will repeat an excellent presentation that FGC saw at the recent Consumer Goods Forum in Paris. As Wesfarmers boss Richard Goyder recently said, Coles was “unrecognisable” from the supermarket chain it was when Ian McLeod took over, so it’s a great addition to FGC’s programme. Michelle Greenwald, professor at Stern University, New York, will be flying

down to address members on innovation in FMCG. Michelle has held marketing roles at Disney, Pepsi and Nestle. And there will be a return of various workshops during the conference on a range of topics, from export (chaired by NZTE), and training and development in FMCG (chaired by Competenz). FGC members who haven’t registered for the conference can contact the FGC office for details. And finally, last year, for the first time, FGC introduced what quickly became known as the ‘Speed-Dating Sessions’ for delegates – 10-minute sessions where suppliers could have one-on-one chats with the bosses from both Progressive and Foodstuffs about anything they wanted to talk about. For many of them this was a rare and valuable opportunity to get face-to-face with the big retailers. In every case that I’m aware of, suppliers came out grateful for this unique opportunity, and the retail leaders found it enlightening and useful, too. It was no surprise to anyone that these sessions were oversubscribed, with more than 50 companies taking up the opportunity. And it was also no surprise that these particular sessions were immediately put into the programme for the 2014 conference before the 2013 one had even finished. This year, Foodstuffs’ leaders Steve Anderson and Murray Jordan will certainly be there. We are taking registrations for these meetings right now. Once again, members should contact the office for details. n

Katherine Rich CEO, New Zealand Food & Grocery Council

August 2014

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WHITTAKER’S MOST TRUSTED WHITTAKER’S has been voted New Zealand’s Most Trusted brand for the third year running, with the chocolate manufacturer also voted the nation’s most iconic label. Dettol took out second place while Panadol, Yates, Wattie’s, Tip Top icecream and Sanitarium rounded out grocery brands in the top 10. The independently commissioned survey involved more than 1,200 Kiwis and identified the most trusted products across more than 40 categories. Pak’nSave was voted New Zealand’s most trusted supermarket while New World and Countdown both received Highly Commended. Pams topped the supermarket/home brand category with Homebrand and Signature Range awarded Highly Commended. “We’re particularly proud of this honour because it’s decided by the New Zealand public. Established in New Zealand 1896, Whittaker’s remains a family-owned company that is proud to have become an iconic New Zealand brand and we’d like to thank the public for their amazing support over the years,” says Whittaker’s marketing manager Holly Whittaker. n

OUR PART IN A HEALTHY NATION UNITED Fresh set up the 5+ A Day WHAKATANE PnS GETS MAKEOVER A MAJOR refurbishment starts on the 10-year-old Whakatane PnS next month giving a 33% increase in its retail area as well as a more efficient carpark. Wider aisles and more natural light is part of the plan that also includes a better link between the store and King Street. Owner operator Andrew Soutar said it was an exciting development for KINGn STREET PERSPECTIVE the team with work expected to be completed late next year.

CONSENT FOR VOGELTOWN COUNTDOWN has received consent to build a new 2400sqm supermarket in Vogeltown with local developer Brooklands Development Ltd. Set to create up to 80 new jobs for the city, the new store will also include an additional 400sqm of adjoining retail outlets. Countdown’s General Manager for Property, Adrian Walker, says the company is committed to building a store that will complement the Vogeltown community and provide a vibrant retail environment for the site. “We’ve been a part of New Plymouth for a long time and are looking forward to putting a local team together for the new store, and adding to our wider team of 400 in the city,” says Walker.

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The company has been looking for a replacement site since it closed its New Plymouth central store early last year, with the new store expected to open mid 2015. “Suitable sites for supermarkets are hard to come by, and we’re pleased that the new store will provide further long term employment and career development opportunities in a growing retail industry.” n

BUY NZ MADE A SUCCESS

NEW Zealand was the focus of celebrations during July with Buy NZ Made Food Month taking place throughout the country. The nationwide promotion within FreshChoice and SuperValue stores increased the profile of local producers in-store and also appeared on customer mailers and websites. To complement this, Buy NZ Made ran food competitions on its Facebook page, developed a game featuring more than 20 classic Kiwi brands, offered food and drink specials and had a stand at the Auckland Food Show themed as a NZ Made supermarket. Buy NZ Made’s marketing and PR executive Scott Willson says the initiative has been popular with participating brands and the general public. “When we sat down earlier in the year and started planning a Buy NZ Made Food Month we had a feeling that it would be something people would really get behind. This has proved to be the case and the public have enjoyed the promotions and competitions. We’ve got a huge range of quality food producers here in New Zealand, so it was great to be able to involve lots of them in our Food Month celebrations,” says Willson. Point of sale material that was created to showcase New Zealand Made and grown products during Food Month will now be on display in SuperValue and FreshChoice supermarkets on a continual basis. n

Charitable Trust in 2007 to promote better health among New Zealanders by encouraging them to eat more fresh fruit and vegetables. As part of the fresh fruit and vegetable industry, we all have a role to play in promoting the benefits of eating our products. Fresh produce is naturally low in fat and high in water and fibre, helping to increase satiety. This helps to reduce the amount we eat, which is a key factor in maintaining a healthy weight. Globally, rates of obesity have increased over the past three decades. Research recently published in leading medical journal the Lancet found that from 1980 to 2013 the proportion of overweight and obese adults in New Zealand’s increased from 50 to 66 per cent. Twenty-nine per cent of our children are now either obese or overweight, up from 18 per cent three decades ago. Our rates of adult and child obesity are the highest in Australasia. Being overweight or obese are known risk factors for several non-infectious diseases, like type 2 diabetes, heart disease, and several cancers. And childhood obesity is associated with a wide range of serious health complications. These conditions place a large financial burden on New Zealand’s healthcare system. They are estimated to cost more than $700 million in combined direct and indirect costs, such as lost productivity. There is no one way to tackle obesity, but the 5+ A Day Charitable Trust is helping to reduce the burden of obesity by focusing on children and making them the beneficiaries of the trust. A recent report by a group of public health experts recommended seven immediate priorities for creating healthy food environments. Two of these align exactly with some of the projects United Fresh and the 5+ A Day Charitable Trust manage. The report recommends promoting healthy foods to children and making healthy food available in schools and early childhood education centres. United Fresh New Zealand Incorporated manages the government-funded Fruit and Vegetables in Schools programme, which supplies fresh fruit and vegetables every day to 479 low-decile schools throughout New Zealand. The 5+ A Day Trust provides free, curriculum-linked teaching resources to schools and early childhood education centres to support the programme. 5+ A Day also has year-round marketing and public relations campaigns to encourage consumption and remind people why eating fresh fruit and vegetables every day is important for everyone. The answer to the obesity crisis is, like the causes, complex. However, organisations like the New Zealand Medical Association and the World Cancer Research Fund agree that teaching children, and adults, about nutrition and healthy food is vital. The 5+ A Day Charitable Trust is all about encouraging New Zealanders to eat five handfuls of colourful produce every day. Eating 5+ A Day tastes fantastic, adds variety, it is also great for health and vitality. Visit www.5aday.co.nz for inspiration. n

David Smith United Fresh www.unitedfresh.co.nz

August 2014

I 7

Voluntary food labelling on the way

RAGLAN 4 SQUARE OPEN

IN LATE June 2014, the National-led Government announced that New Zealand was joining with Australia’s voluntary Front of Pack Nutrition Labelling system. This uses the Health Star Food Rating system which calculates a star rating scale of ½ to 5 stars based on the overall nutritional value of the food product. It does not just evaluate one aspect such as sugar or fat content. Stars can be used on all packaged food products for retail sale but there are some exemptions (including alcohol). Foods with more stars are considered to have better nutritional value. The number of stars associated with each food is determined by an algorithm that considers the overall nutritional value of the product. Announcing the move, Food Safety Minister Nikki Kaye said the system should make it quicker and easier for New Zealand consumers to make better informed, healthy choices. The Ministry of Primary Industries has developed a calculator to determine the star rating and a style guide to ensure consistency in labelling. It is important to note that using the ‘Health Star Food Rating’ system is voluntary. Additionally, it will take some time to set up and implement so the labels may not begin to appear in stores for six months to a year. There will be a public education campaign to inform people how the system works. Additionally, stores handling products with labels – whether the labels are generated in-house or by suppliers – will need to ensure staff understand the star

RAGLAN’S new 350sqm Four Square is open for business following the closure of the previous store in 2012. The Bankart St store is currently in the final stage of council approval with new owners Ken and Lesley Curtis promising to bring a fresh shopping experience to the community. “Both Lesley and I are thrilled to be able to deliver the iconic Four Square offering to Raglan. Customers can expect to find all the great Kiwi brands they need, along with fresh produce and meat. And all at great prices,” says Ken.

RYMAN BUYS SITE

FOODSTUFFS North Island has announced its Adelaide Rd site in Newtown has been sold to Ryman Healthcare. Foodstuffs purchased the 600sqm site from Tip Top in 2009 with plans to develop it but a strategic review by the company determined the property was surplus to requirements. “After investigating a range of options for the site, we are pleased to have been able to work with Ryman Healthcare to achieve a great result for both the property and the Wellington community,” says Angela Bull, Foodstuffs NI general manager of property development. Ryman plans to develop the site into a boutique retirement village.

system and can explain it to customers. Overall, NARGON believes this is a positive move though the implementation will have to be monitored carefully. Crucially, the system is voluntary – not compulsory. We believe voluntary, industry-led solutions are usually more effective than centrally imposed, compulsory systems. This voluntary nature enables companies and stores to make their own decisions based on their own requirements and customer needs. For example, some stores may wish to label all their products, or just certain sections. Customers asking for the information may demonstrate stronger than expected demand for information which stores can then ensure is supplied going forward. It is clear that many people are looking for more information about their food in order to make better informed decisions. Some customers will change their eating behaviours based on clear nutritional information which should have positive health outcomes. Consumers can have the option of seeing this information on the pack. Obviously there are many ways nutritional information can be calculated and displayed. The “Traffic Light” system was considered but rejected because the Government believed the system should evaluate the whole food and not just individual nutrients. The traffic light system evaluates each nutrient separately and does not give an overall rating to the food. Additionally, the Government wanted the rating

to be based on nutrients that are positive and negative according to New Zealand dietary guidelines. The traffic light system is based only on negative nutrients. In both cases, the star rating system is preferable to the traffic light system. NARGON considers it to be a more nuanced and robust measure. We also note that the Health Star Rating system does not replace any existing information or requirements. It provides consumers with more information on which to base their choices. All existing information will remain as well. The industry advisory groups have been working on this policy for over two years. NARGON believes they have carefully considered several important issues and developed a system which is voluntary and flexible, can provide clear and meaningful information, and is completely compatible with Australia. NARGON will be providing more guidance as the system rolls out but the resources – including the Health Star calculator and label style guide – can be accessed from the Ministry of Primary Industries website: http://www.foodsafety. govt.nz/industry/general/labellingcomposition/health-star-rating/ n

Trina Snow Executive Director NARGON

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FRUCOR INVESTS IN R&D

THE WEALTHIEST IN GLOBAL FOOD

FORBES has published a list of the world’s top 500 billionaires and it is interesting to see the ten wealthiest in the food and drink business. At #22 is Michele Ferrero and family (Italy) with $US26b from chocolate. At #30 is Jorge Paulo Lemann of Brazil who has made $US21.6b from beer, followed by Forrest, Jacqueline and John Mars with $US19.4b ranked at #38 obviously from candy. The next six all made their money from beer and other beverages down to the tenth on the list at #127 – Dietrich Mateschitz who made his $US9.8b from founding Red Bull.

FRUCOR has opened a new $6 million TransTasman research and development centre in South Auckland. Officially opened by Minister of Science and Innovation, Hon. Steven Joyce, the new facility is part of the manufacturer’s $45 million, five year investment in innovation and technology at its Manukau plant. Funded by Suntory, the company’s Japanese owners, the substantial investment shows strong support for Frucor’s international expansion ability and provides a direct link to the factory along with space for new equipment. “When it comes to research and development, we believe we are one of the most

NEW BROKER FOR VITTORIA

VITTORIA Food & Beverage has appointed Alliance Marketing as its New Zealand retail broker, commencing last month. Formerly known as Cantarella Bros, Vittoria’s brands include Vittoria, Caffe Aurora, Delta Coffee, Santa Vittoria Mineral Water, Chocochino Drinking Chocolate and Nutino Hazelnut Spread. The company is also the agent for Jarlsberg Cheese.

ROASTS TWO TICKS sophisticated beverage companies in the Southern Hemisphere. We want to be creating infrastructure that supports our dedicated R&D team whilst also providing room for growth in the future,” says NZ CEO Mark Callaghan. n

SILVER Fern’s lamb leg, venison and beef prime cut roasts now hold the Heart Foundation’s highly sought after Two Ticks accreditation. The Two Ticks symbol allows consumers to easily identify products that are the healthiest in the category. The new accreditation coincides with Silver Fern encouraging consumers

to view roasts as an everyday meal option, with its conveniently sized, boned and vacuum sealed range suitable for cooking in less than 40 minutes.

BP LOSES BATTLE

IN Australia, BP has lost a 12 year fight to trademark the green shade used in its sunburst logo since the 1930s. Known as Pantone 348C, BP had tried to prevent retailer Woolworths from using a similar shade of green in its apple logo. “We believed that a general claim on the colour green was unreasonable,” says a Woolworths spokeswoman. While unsuccessful in Australia, the multinational company has managed to trademark the colour in both Britain and Europe.

GF TAKEOVER BID FALLS $50M

WILMAR International and First Pacific have dropped its Goodman Fielder takeover bid by A$50 million following due diligence. Goodman Fielder’s board agreed to a takeover price of 70 cents per share in mid May, with the new price of 67.5 cents requiring 75% shareholder approval. The revised bid values the manufacturer at A$1.32 billion and will be decided with a shareholder vote expected in November. Goodman Fielder chairman Steve Gregg says the takeover represents a positive outcome for its employees, customers and consumers. “It provides an opportunity to further leverage our strong consumer food brands in Australia and New Zealand to grow our business across the Asian region,” he says.

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BRAND AMBASSADOR FOR NUENFANT GOLD KIWI infant formula brand Nuenfant Gold has appointed Commonwealth Games gold medallist Anna Harrison as its new ambassador. Developed in New Zealand by NutriaDairy, the Nuenfant Gold range includes Infant, Follow On and Toddler formulas. Part of New Zealand’s netball team at the Glasgow Commonwealth Games and a relatively new mum, Harrison is impressed by the formula’s high quality ingredients. “The contents of the formula are a big selling point for me as pretty much everything in Nuenfant Gold is local – and that means a lot. They’re also committed to supporting new parents which is awesome as you have a lot of questions when you’ve just become a new mum or dad,” she says. NutriaDairy founder Mark Fankhauser says the brand has a strong partnership with the NZ Olympic Committee, making Harrison a perfect fit for Nuenfant Gold. Featuring a unique recipe designed for the company by infant nutrition expert Warren Cook, Nuenfant Gold contains whey protein, omega 3, prebiotics and key vitamins and essential minerals. “We rely on our extensive milk industry expertise and cutting-edge science to create the healthiest and most nutritious formula possible, giving parents and their babies the quality and safety they deserve,” says Fankhauser. n

NEW FORMULAS FOR FAVOURITES

GRIFFIN’S has added to its biscuit offering with the launch of ToffeePops Double Choc. Featuring a cocoa biscuit base, Double Choc contains an extra toffee filling and is coated in milk chocolate. The new release coincides with improved recipes for Griffin’s existing ToffeePop and Squiggles ranges. ToffeePops Originals now contain 20% more toffee and a thinner, lighter biscuit base specifically designed to carry more filling. The brand’s Hokey Pokey Squiggles are now packed with 50% more hokey pokey nuggets and contain a new hokey pokey flavoured cream. “We think these new and improved recipes have resulted in our best chocolate biscuits yet. This is a big call in 150 years of baking, but we are sure that once Kiwis bite into them, they will agree they’re getting much more bang for their biscuit,” says Josette Prince, Griffin’s general manager sales and marketing. n

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PROPER CRISPS INVESTS FOR GROWTH

INGHAM WINS ECO AWARD INGHAM has taken out the Excellence in Eco-Efficiency award at the NZ Institute of Food Science and Technology’s Food Industry Excellence Awards. The award recognises Ingham’s contribution to achieving resource efficiencies in its food business, with the company praised for leading the sustainability initiative from management through to staff on the ground. Inghams’ group executive manager Adrian Revell says environmental sustainability is one of the company’s top three business priorities. “Over the last five years, Inghams in New Zealand has achieved a 20% reduction in electricity usage and a 32% reduction in landfill waste at the primary processing plant in Waitoa. Being eco-efficient is a true competitive advantage that the company recognises and embraces, with active participation and support from staff,” says Revell. n

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Mina Wilkie-Smith and Ned Smith

NELSON based Proper Crisps is investing significantly in its business with new manufacturing equipment brought in from America and an additional 400sqm warehouse currently under construction. The company’s new specialised cooker has resulted in a 220% increase in production of the brand’s four crisp variants – Marlborough Sea Salt, Sea Salt & Vinegar, Smoked Paprika and Rosemary & Thyme – while maintaining the hand cooked quality Proper Crisps is known for. Purchased three years ago by Americans Ned Smith and Mina Wilkie-Smith, Proper Crisps has since moved to new premises, streamlined its manufacturing processes and introduced new flavours. With quality at the forefront of the business, Ned says the 100% natural and gluten free crisps are attracting new users.

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“We’ve helped revitalise a stagnant category by providing an alternative that had previously been missing from the market. While our methods are time consuming our aim has always been to produce the best potato chips and we’re doing that right here in Nelson,” says Ned. Available in 140g and 40g packs, Proper Crisps’ premium range continues to gain market share and increased distribution throughout New Zealand. Sales and marketing manager Tina Thomas says the brand offers retailers greater margins, higher trolley spend with attractive POS displays available. “As the entire range is gluten free it allows the product to be dual positioned within both the snack and gluten free sections. Our crisps are also being trialled in the deli section of a couple of New World stores

alongside the handmade sandwiches and as an add-on purchase they are doing really well,” says Thomas. Ned says the brand’s manufacturing processes are unique with all of Proper Crisps seasonings made inhouse and pre-salted before being seasoned with real herbs and spices. Launched last year, Proper Crisps’ Salt & Vinegar flavour was the first in the world to use the encapsulating process, resulting in a dairy free variant with a distinct flavour profile. “Restraint is key when working out the flavour to chip ratio and we have a third of the spice level of chips currently available in the marketplace,” he says. With new flavours in the pipeline and the company’s new warehouse facilities due to be completed early October, Proper Crisps is well positioned for future growth. n

PACKAGING COUNCIL EVOLVES & ENGAGES

CASH EQUIPMENT UPTAKE ON THE RISE

The Packaging Council of New Zealand has been around for 21 years and in that time we have seen the organisation grow from the early days of the Packaging Industry Advisory Council serving packaging manufacturers only, to today where we have members across the whole of the packaging life cycle, from packaging material suppliers to end-of-life service operators and recyclers. WE have also seen the role of packaging in society change dramatically from 21 years ago when packaging was much more a commodity item than it is today, and end of life options such as kerbside recycling were not available. Against this backdrop the Packaging Council has undergone significant changes in representation of its members. We have evolved through two Packaging Accords, two Waste Strategies, introduction of specific Waste Legislation and overseen an industry which has moved from producing a commodity product, which was put into the bin without a second thought, to a vibrant, innovative, dynamic industry producing packaging which balances societies wants and needs with concerns about environmental degradation. Packaging today: touches everybody, everyday and just about everyone has an opinion on packaging ranging from love-it to loathe-it and all points in between. But, in my opinion, the role of packaging has become at best unclear, and at worst completely lost, in the packaging waste debate. Our attention has been distracted by what packaging is – rather than what packaging does. So as I begin my tenure as the Executive Director of the Packaging Council my goal is to provide a balance to the packaging debate, educate on the role of packaging, and hopefully provide insight into the purpose of a package’s particular design and functionality. Ultimately I would like to see all consumers consciously thinking about how they are going to use the product and select the appropriate packaging choice to meet their needs. This can be as simple as understanding if you are going to consume fresh produce within a few days then there is no need to buy that fresh produce packaged. But if that produce needs to last several days, or will be subject to multiple handling before it is consumed then the role of the packaging will be a crucial element to keeping that produce fresh and fit for consumption. Less understood is the relationship between packaging size and the actual size of the product. The cries of “over-packaging” are, at face value, absolutely valid for any

number of products. However, a second look might appreciate that a tiny electronic device, for example, is an easy target for theft if packaged according to its size – that very large package is as much an antitheft device as it is a means of delivering the product. Similarly the luxury market for products, provides packaging which enhances the experience of the product – again the packaging is less about simply a delivery method for the product and more about fulfilling a purpose in its own right. Individually wrapped pharmaceuticals provide for enhanced safety, some bulky closure devices are designed to specifically suit applications such as child resistant closures, or ease of opening for dexterity challenged consumers. These are but a few examples of the varied functions packaging fulfils. The challenge for the Packaging industry today is to engage across the whole of society so the role of the packaging is clearly understood in context which balances waste prevention of both product and packaging. It is time for the Packaging Council to lead a new conversation. n www.packaging.org.nz

INTEGRATED Technology Solutions (ITS) supplies retailers nationwide with cash technology equipment from global brands Scan Coin, Tidel, MEI and Wincor Nixdorf. Its extensive product range is the largest in New Zealand and includes cash recycling machines, note and coin counting equipment and cash scales. Over the past 18 months, cash recycling machines have been a best seller for ITS with both of the major supermarket chains adopting the time-saving technology. As Foodstuffs’ preferred supplier of cash technology, ITS’ cash recycling range is suitable for stores of all sizes with small, medium and large models on offer. The note recycling capacity is the main difference between the models. “Given our wide range of options we are proud to be in this unique position of being best able to tailor the right solution for customers’ specific needs,” says ITS general manager David Gould. Gould says internationally there has been a significant uptake of cash technology equipment, with ITS currently installing its Miss Bic Qtr Page SN 154x102.5

retail cash handling technology in over 650 Australian stores. Offering retailers improved efficiencies, cash recyclers can provide real time cash flow reports as well as reduce cash holdings, David Gould CIT costs and store administration costs, resulting in greater accountability and cash management. Part of the Linfox Armaguard Group, ITS has been supplying the Kiwi market for the past 20 years and its ability to offer a complete endto-end cash solution is unmatched. The fully integrated company also offers CIT cash services via its sister company ACM, together with its popular Same Day Funding. This service enables customers to be credited the value of the cash they have deposited in the cash machine despite the cash not being collected. Gould says the Same Day Funding service allows retailers to save money by reducing the number of cash pickups, such as from six days a week to one, without suffering from cash flow issues. “It’s easier, it’s faster and it’s a smarter way of managing cash instore,” says Gould. ITS’ product range will be on display at the upcoming Foodstuffs in Wellington. Bexpo Approved PRESS.pdf n 1 16/04/14 9:13

Sharon Humphries Executive Director, Packaging Council of New Zealand

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LIQUOR Andy Routley

DB TO CAPITALISE ON CIDER TREND ANDY Routley is the managing director of DB Breweries, heading up a portfolio of premium brands including Heineken, Tiger, Amstel, Tui, DB Export, Rekorderlig and Monteith’s. In the role for the past 18 months, Routley has 25 years experience in the consumer goods and drinks sector in Europe, Australia, and the USA and was previously the global brand marketing director for Miller Beer and SAB Miller. “Leading an iconic, national company like DB is certainly a major achievement and my current career highlight to date. It was a great privilege to be selected to head DB and I have a full appreciation of the social and cultural importance of this company and our brands on the Kiwi lifestyle,” says Routley. Under Routley’s leadership DB has integrated its cider and RTD businesses and established a cider leadership team

dedicated to driving the company’s 47% market share. The company has also rolled out an updated IT platform with its sales reps using iPads loaded with relevant outlet specific data and an efficient new ordering portal. Part of the Heineken international network since 2012, DB is able to leverage the global network of one of the world’s most respected and largest brewers, rapidly increasing its level of exports of NZ beers and ciders with Monteith’s beers and cider exports up 15% year-on-year. Routley says DB has been working hard to harness the current excitement and momentum about beer with cider also capturing the imagination of consumers, growing 30% over the past three years. “We are challenging ourselves to be more dramatically innovative in all that we do. From the beer we brew and our packaging right through to how to

talk about our beer stories and how all our customers and drinkers experience our products,” says Routley. The brand led, consumer inspired and customer focused business has looked to bring new ideas to the category over the past 12 months, with innovation deemed essential to growth. Predicting future growth will come from the low alcohol segment for both the cider and beer categories, DB has already made strides in this direction and currently has the market leading beer with Amstel Light. “We see the growth in the low alcohol segment as being part of a wider health and wellbeing trend (including low carb offerings) and we expect this trend to continue as well. In DB Export 33, we also have the market leading low carb beer.” Routley says the future of local brewing looks positive with the growth of craft beers over the past few years supporting this. While manufacturing local brands, DB also brews international brand Heineken under license at its Waitemata Brewery and has done since 1994. “There is also a need to find the right balance between importing international brands that consumers want to experience together with great, local beer brands in order to make up a winning portfolio. We certainly have this at DB.” With 70% of the nation’s liquor sales currently going through the grocery sector, Routley believes the volume of beer and cider sold through supermarkets is likely to remain high. “I think we will also see a shift in what products and pack types are available in supermarkets as opposed to other channels with ranges on shelves and in chillers being smartly informed by shopper insight and preferences.” Routley says the liquor industry must tackle alcohol abuse head on with positive change afoot globally in terms of manufacturers’ commitment to promoting responsible and enjoyable consumption. “I absolutely believe that the alcohol industry needs to be at the forefront of work in the responsible consumption area if it is to have a truly sustainable future.” n

Wine Awards Attract International Judges

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

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THE 2014 Air New Zealand Wine Awards has announced two respected international wine experts will be joining this year’s judging panel. Australian Gourmet Traveller’s David Brookes and leading Swedish wine buyer Sebastian Braun are two of this year’s 26 judges. Chair of judges and Master of Wine, Michael Brajkovich, says having international judges involved in the process ensures that the awards maintain their high standard. “The Air New Zealand Wine Awards is a highly respected competition internationally. Our winemakers are world-renowned and having an experienced judging panel is critical in helping the industry strive for improvement in quality and innovation,” says Brajkovich. Entries for the 2014 competition open on the 11th August with judging set to take place from 3-5th November. Winners will be announced on the 22nd of November at a black tie event in Hawkes Bay.

THE COMING OF AGE OF A NEW AUCKLANDER? I READ the recent report “AK2: The Coming of Age of a New Auckland” with interest, along with the satirical response by Greg Nixon in Canvas. The rise of a hospitality scene in Auckland to rival Wellington, the emergence of Britomart and Q Theatre, a revamped Art Gallery, the continued development of North Wharf and Wynyard Quarter, have given at least the CBD good reason to be proud. For once, talk of development itself in Auckland is more typically positive than negative. Outside of the CBD many suburban centres continue to flourish, often built around a beloved local cafe or bar. The already established village centres, such as Howick and Titirangi, seem to become lovelier each time you visit. Our Metro centreslag behind, but at least their importance to Auckland’s future has been identified in the Auckland Plan and the Proposed Unitary Plan. You won’t find any formal statistics on it but looking back – how much of this development has been down to hospitality? The hospo scene lead the way for at least Federal St, City Works Depot and Victoria Park as well as North Wharf. Britomart’s arrival timed in with the Rugby World Cup 2011. In some ways it is a circular argument as anywhere there is foot traffic, hospitality is close behind with something to keep those feet satiated, but in many examples the food and beverage offering was actually the first mover. It is not all about food and beverage of course, although a large number of the respondents to the AK2 report seemed to think it was. Auckland Council’s draft Local Alcohol Policy (LAP), currently under consultation, will set the scene for whether this continues or not. Already there is conflict with the plan for Metro centres – once the hub of the future Auckland according to the Auckland Plan, but now destined to shut restaurants and bars by 1am and supermarkets by 10pm under the LAP. One thing is for sure though– Auckland and its population will continue to grow. There are now at least four key documents that will have a material say in how this happens – the Auckland Plan, the Proposed Unitary Plan, the LAP and the Arts and Culture Strategic Action Plan, and they need to talk to each other instead of across each other. If they can do that we will be half way there. The other half of the equation is the people that live there. Auckland may develop the architecture, bars, restaurants, cafes, shops and even transport that we desire of it, but it needs to develop the people as well. We still seem to spend far too much time talking about house prices instead of ideas. We still seem to prefer to criticise than to create or celebrate. We still seem to think too individually instead of collectively let alone collaboratively. Much like corporate leadership 101 – we’re too focused on strategy and not focused enough on culture. And that’s why I admire James Hurman for producing AK2, because for a refreshing change he is at least saying, ‘It’s ok to be proud about Auckland and let’s start a discussion about how we can make it even better’. n

Matt Wilson Corporate Relations Manager DB Breweries Limited

August 2014

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globalretailtrends country through 67 stores. “Our customers continue to embrace online shopping. In the last five years we’ve seen a significant increase across all our online channels, whether that’s online shopping, Click & Collect or our smartphone app. Increased use of purchasing over the internet has meant it’s fast becoming the norm to order groceries online and currently we’re seeing double digit growth in customers using our online services year on year. We’ve added 22 stores through either Click & Collect or as a fulfilment centres for online delivery.”

SUPERMARKET food trends for 2015 were a key focus at this year’s World Food Tour by SIAL in Paris. Judges from 29 international markets met earlier this year, prior to the major trade show set to take place in Paris in October, to discuss their respective retail markets. New Zealand judge, Tania Walters of SupermarketNews, reports on the seven major global retail trends.

TREND 1: Home delivery & e-commerce

TREND 2: Price war & the intensifying competition between brands

HOME delivery has developed quickly throughout international markets since it was first introduced with the service generating significant revenue for retailers. For consumers the interest is two-fold: the prices are the same as those in-store and they are offered the added convenience of no longer needing to leave their homes in order to shop. Countdown’s national online manager Tony Petrie says the retailer is continuing to expand its online offer and now delivers to 99% of the

THE level of competition in large world retail markets is currently at its highest under the twin effect of the stagnation of consumption and the constant opening of new commercial spaces. The consequence: in order to attract increasingly ‘price-sensitive’ customers, brands and retailers are competing strongly against each other. Price comparisons are becoming common currency in England, United States and Canada. PARIS • 19 - 23 OCTOBER

TREND 3: The valorisation of market areas

WITH the increasing importance of home delivery and e-commerce, brands

Experience makes the difference in FMCG recruitment.

are beginning to re-assess the in-store shopping experience. Their aim is to, once again, encourage consumers to visit physical stores. The market area (produce, bakery, butchery) is the route most often chosen. New presentation techniques and staff skills are favoured with products carefully selected. In Toronto, the brand Longos, a local, independent chain, over-values the instore market area.

TREND 4: Hard-discount at the end of its era?

THE competitive situation of the hard discount varies country to country. In France, the hard-discount has been declining for the past four years while Spain’s Dia network was put up for sale in the spring. Traditional discount retailer Lidl has changed its design to the point where the hard-discount, in the historical sense, is nothing but a distant memory. National brands in the product range, bread baked onsite, theatrical staging of the perfume displays, and wine cellars are a distinct shift away from its budget and nofrills origins. In Germany, pioneering country of the hard-discount, Aldi is also following Lidl’s lead in terms of hard-discount activity with more appealing stores and a greater selection and brands. By contrast, the hard-discount is still trying to make a breakthrough in some countries, particularly England and Ireland.

TREND 5: Smartshopping

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and a slew of new apps allow consumers to search for information (including offers), receive it, interact with brands and even substitute the self-checkout terminals. As part of the World Tour by SIAL, retail giants Carrefour and Walmart are planning to trial new experiments relating to this including on-site photography. Using mobile phones and NFC technology, consumers will be able to receive the full description of the in-store product. PARIS • 19 - 23 OCTOBER

TREND 6: The globalization of trade

RETAIL is more global than ever with all of the major retailers and brands now operating on several continents. Walmart, Tesco, Carrefour, Auchan and Casino are present in America, Europe and Asia with the retailers now looking to target the African markets. Already a key player in South Africa, Walmart is ready to boost its presence in the continent. One of the most globalised retailers, Auchan, currently makes 60% of its turnover outside its home market of France.

TREND 7: Amazon Fresh: the new giant of the food trade?

IN its strategy to diversify, Amazon is trying its hand at the retail grocery sector. To date the American group has three trials in Seattle, San Francisco and Los Angeles being carried out and is setting itself apart by combining seemingly unlikely offers with home delivery. Amazon’s offering includes groceries and industrial fresh produce as well as locally produced or specialised produce from restaurants, top of the range artisans or wine merchants. If the trials are successful, Amazon has already indicated it will roll out its service to the UK.

NOT SO MUCH THE RISE OF FUSION, MORE ‘LET’S EAT MEXICAN TONIGHT’ OUR pick from the global trends is exoticism. While there is nothing new in this trend its popularity is rising in consumer brands and we predict even more ethnic product coming into the market in 2015. The mixing of spices and ingredients from two countries (Japanese/French for example) hit their popular height in the 90’s, however this time it is not so much a mix of cultures but more of a single culinary focus. The boom in the New Zealand hospitality sector of ethnic flavours with everything from Indian, Thai, Japanese, Korean, Italian, Greek and so on provides the FMCG sector with a lead-in to offering products that meet this consumer demand for international flavours, albeit with a New Zealand flavour palette, and making those flavours available for at home consumption. Our love of

travelling means that New Zealanders are more exposed than many to the flavours of international cuisine. Cool combinations such as Moroccan flavoured Israeli couscous, prepared with New Zealand lamb, the addition of little known fruits or vegetables or a particular regional spice brings a flavour of a far away country right into the consumer’s kitchen. Mini tacos are elevated to a new level with shredded duck meat and mole poblano sauce, and burgers with artisanal cheese shrunk for sliders. These culinary options where the consumer is taken from “make it for me” to “help me make it” means that in 2015 there will be more options on shelf for consumers to cook many international cuisines with the help of prepared sauces, flavourings and seasonings. 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

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storecheck WHANGAREI stores were visited by our mystery shopper this month with New World Kensington being a clear winner. While Whangarei Pak’nSave was in the

COUNTDOWN, WHANGAREI

The better half and I wanted a weekend away and decided to visit the stunning coastal scenery of Tutukaka. Needing some essentials we stopped in Whangarei in appalling rain. Firstly we went to Countdown in central Whangarei. The most notable memory is the dreadful carpark. Heavily congested we couldn’t get a park anywhere near the supermarket and had to walk for miles. However, the supermarket was well lit and the fresh produce nicely displayed and well stocked. The Mrs decided on some olives and Melissa kindly wrapped them in glad wrap to prevent any spillage which was excellent service. The fresh cooked chickens were nearly out of stock but you could see that more had been cooked and were about to be restocked. The meat section was poorly stocked and there were quite a number of specials throughout the store that were out of stock. The shelves were well fronted with good signage and overall the store was clean and tidy. There were not enough checkouts open and we had quite a wait.

PAK’nSAVE, WHANGAREI

Just down the road was a Pak’n’Save which was in the process of being refurbished. The fresh produce area was the best part of the store, the rest was clearly under pressure as the centre of the store was walled off and the floor had been dug up. There was a store directory at the entrance but it was empty so that was no help. It can’t be easy running a store in these conditions. However, that is no excuse for the fact that the fridges and shelves were dusty, dirty and unclean. The wine selection was poor and everything was dingy and dilapidated. But at least they had covered walkways which helped when we walked back to the car.

NEW WORLD, KENSINGTON

Leaving the CBD we got a park at New World in Kensington. On entering we found a pleasant, well lit store with a wide range of fresh produce. The New Product signs really stood out in the aisles. The fresh fish section had an excellent range including tuna fillets and really nice snapper. The Health and Beauty aisle looked great with its wood veneer shelving and pelmets as did the really well stocked wine area. The whole store had a clean tidy feel to it and there were plenty of checkouts open. I went through the 12 items or less checkout and was immediately served by Daisy who was lovely and she wrapped the wine in newspaper which I thought was a nice touch. Returning to our car I noticed that they had their own petrol station in the car park. I don’t think I’ve ever seen that in a New World before.

COUNTDOWN, KENSINGTON

Lastly we went straight over the road to a large well lit Countdown. I noticed that it had the new Logo but still had the old green colour exterior. The fresh produce was excellent but the same couldn’t be said of the fresh fish which looked old and dry. The mussel fridge didn’t have its sprayer working

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STORE EXTERIOR

CD PnS NW CD Whangarei Whangarei Kensington Kensington

• 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 PnS NW CD Whangarei Whangarei Kensington Kensington

• 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 PnS NW CD Whangarei Whangarei Kensington Kensington

• 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 PnS NW CD Whangarei Whangarei Kensington Kensington

• 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.)

middle of a refurbishment, retailers need to ensure the standard of service and the overall cleanliness of a store remains high throughout construction. either. However the meat was well stocked and looked nice and fresh. While the floors and store overall was clean and tidy there were two trolleys unattended in the aisles. There was a spacious and well stocked wine area which had quite a number of buckets to collect the drips from a number of leaks in the roof. The fridges and freezers were modern and very clean and well stocked. A quick dash through the checkout and we were able to continue our trip. And yes we had a fabulous weekend in a truly beautiful part of NZ.

STAFF

www.supermarketnews.co.nz

CD PnS NW CD Whangarei Whangarei Kensington Kensington

• 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 PnS NW CD Whangarei Whangarei Kensington Kensington

• 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.)

5 2 5 4

• Overall shopper experience (10 pts.) 7

HOW THEY SCORE?

CD PnS NW CD Whangarei Whangarei Kensington Kensington

Maximum available score: 200 pts 145 115 180 TOP SCORE

171

CONTACT: Kevin and Peter at 09 274 9019 www.safconz.com August 2014

I 17

h&baisle NEW SCHICK RAZOR

ENERGIZER has launched a 5-in-1 value pack from its Schick brand. Schick Xtreme 3 Sub Zero Disposable System is designed to reduce razor burn while offering a close triple blade shave. Featuring patented Anti-Razor Burn technology, Schick’s new product contains a soothing pre-shave oil-infused glide bar and vitamin enriched comfort strip which minimises razor drag and irritation.

BIO-OIL CONTINUES NZBCF PARTNERSHIP

DURING October Bio-Oil will once again show its support for the New Zealand Breast Cancer Foundation, with its 60ml packs stickered with the official NZBCF Pink Ribbon logo. As a Pink Ribbon Gold Partner, Bio-Oil will be encouraging customers to purchase its stickered packs during Breast Cancer Awareness Month, helping to raise $25,000 for the charity. Bio-Oil is the number one product for scars and stretch marks and is used by many women at times when healing is important. “Bio-Oil has contributed $75,000 to the NZ Breast Cancer Foundation over the past three years, and supported the Foundation’s inaugural Breast Reconstruction Awareness Day event in 2013. The money raised by Bio-Oil has gone towards education, research and supporting women in their fight against breast cancer,” says Ségolène de Fontenay, corporate fundraising manager for NZBCF.

NEW LOOK FOR KNIGHT’S CASTILE

PENTAL has launched a new and refreshed Knight’s Castile 5 Pack range to replace its current 4 Pack offering. The brand’s Original Lanolin and

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Soothing Aloe trusted formulations remain unchanged while the bar shape and packs now boast a newlook. The new Fresh Linen variant is a popular and proven fragrance which complements the brand’s existing bar soap range. Packed in satin board, the new packaging reflects the quality of the Knight’s Castile brand and can be positioned horizontal or vertical to optimise shelf space. Worth $27.2 million (Aztec Scan, TKA MAT to 26/06/2014), bar soap makes up a significant 30.5% share of personal wash with Pental remaining dedicated to fulfilling consumer needs with its range of good value, fresh and invigorating bar soaps. Manufactured since 1963, Knight’s Castile is formulated using quality ingredients enriched with natural oils and produced at Pental’s soap manufacturing plant in Australia. The brand is handled locally by The Sales Dept.

MAGIC BLUR TOP SELLING SPOT

L’OREAL’S Revitalift Magic Blur has been announced as the number one female skincare product in New Zealand, holding the top spot since mid-May. Due to high consumer demand, the L’Oréal warehouse officially sold out of the product at the end of May with more than 7,600 units sold in New Zealand within the two and a half months it had been on shelf. Designed to instantly blur the look of lines, wrinkles, and pores, Revitalift Magic Blur also promises makeup adhesion throughout the day. L’Oréal marketing director Shannon Watts says the latest four week period data shows Blur sales exceeded $110,000 for the four weeks to 18 May. “The Blur phenomenon has taken the world by storm. Women want results now and Revitalift Magic Blur truly delivers on this, blurring lines and imperfections in seconds,” says Watts.

NEUTROGENA LAUNCHES HYDRO BOOST

JOHNSON & Johnson has added to its skincare offering with the launch of Hydro Boost from its Neutrogena brand. The first Neutrogena line to contain highly purified Hyaluronic Acid, the Hydro Boost range works to hydrate skin by attracting and holding water to plump skin and boost elasticity. Encompassing a Water Gel, Eye Roll-On, Night Concentrate, and Gel SPF15, Neutrogena’s new offering is formulated with an innovative Progressive Release System, which ensures moisture is released continuously over time, hydrating skin for a full 24 hours. The premium, dermatologist tested, oil-free and non-comedogenic formulas instantly absorb into the skin and use olive extract to restore skin’s natural moisture shield and prevent moisture loss. The range’s Water Gel promises to double skin’s moisture in just one hour while its Gel SPF15 contains a nongreasy formula which provides long lasting hydration with UVA/UVB sun protection. Hydro Boost’s Eye Roll-On uses a unique roller ball applicator to massage and stimulate blood circulation around the eyes and its Night Concentrate replenishes skin. n

For more information contact your Energizer representative or customer services on 0800 803 837

www.schickfreeyourskin.co.nz

www.facebook.com/SchickNZ August 2014

I 19

sales&merchandisingagencies MORE BRANDS USING SMA’S For a relatively small marketplace servicing only four and a half million

Often our members are early adopters of many value add solutions such as the latest CRM tools and systems and training and education programs, and are able to trial extended service options such as sales and merchandising support to the Four Square retailers and one-day, one-off speed to market executions. Our members range from full service boutique brokerage firms to large multi-nationals and specialist niche agencies. Common to all our members is having the opportunity to discuss current issues and trends affecting SMA’s with their peers, with other FGC working groups and CEO Katherine Rich providing direction and guidance from a board perspective. For further information please contact the NZ Food & Grocery Council. n

consumers, New Zealand has a high store per capita ratio. Geographically hard to service, outsourcing to sales and merchandising agencies is becoming an increasingly popular option for many Kiwi companies who do not have the sales force or infrastructure required to distribute nationally. MULTINATIONAL businesses are also seeing the benefits of outsourcing and in a bid to keep costs down are moving away from the traditional in-house model. Countdown’s general manager for merchandise, Steve Donohue, says more brands are engaging with SMA’s. “We work with a number of SMA’s who help bring products to life in stores on behalf of suppliers. For smaller businesses or start-ups they can be particularly valuable because they have the infrastructure to bring products to the market quickly and easily, and can help supply a large national network like ours. SMA’s can also bring efficiencies in warehousing and distribution, marketing support, sales, and also provide on the ground field support, which is why many offshore businesses use SMA’s,” says Donohue. Foodstuffs also supports the growth of SMA’s, with FSNI general manager merchandise,

Baden Ngan Kee, addressing a number of SMA’s during a recent industry speaking engagement. “We recognise that SMA’s are a key vehicle for providing support to suppliers who for a range of business reasons do not have their own sales forces. A strong efficient sales force makes it easier for our stores and support centres to deliver a comprehensive product range to our customers. From our perspective as long as the sales force is engaged and keen to deliver then it does not matter if they are the suppliers own or provided by an SMA,” says a Foodstuffs spokesperson.

SMA WORKING GROUP The FGC Sales & Merchandising Agency Working Group (SMA) was originally formed in 2004 by key leaders who recognised a need to

100% NZ owned, Storelink is a leader in sales and merchandising with over 350 people based from Kaitaia to Invercargill. It’s all about Your Brands and Our People. Contact: ANGIE SMITH Business Manager for Sales & Merchandising 09 475 9039 or email: enquiries@storelink.co.nz

PRODUCT SALES

MERCHANDISING

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provide a unified voice for members within the FGC and wider industry. In 2004 the members contributed approximately 6% of total grocery sales. Since this time increased uptake of SMA services has seen recent results now sitting at 11%. Today our 18 members represent over 250 brands, employ approximately 2,000 sales and merchandising staff, invest over 785,000 hours annually merchandising and 385,000 hours in selling calls to our two biggest grocery retailers. Despite growth results we still trend behind Australia where 25% of sales are attributed to SMA’s while the US currently attributes over 55% to outsource agencies. With on-going demand for organisations to increase retailer support, deliver greater returns and reduce costs, utilising the specialist services of an outsource agency is becoming a viable option for both local and off-shore companies.

Rachel Clayton SMA Working Group, Gaulter Russell

Do you understand how to make your products work best for you in New Zealand’s competitive grocery channel?

WE DO.

We have both the experience and the focus, ie the 10,000 hour rule. We know that success doesn’t just happen, it’s a combination of hard work, tenacity and timing and that’s where we put our experience and focus to work for you! P.O. Box 2316, Christchurch Mail Centre, CHRISTCHURCH 8140 Ph: +64 3 366-3000 Fax: +64 3 365-2889 email: phillip@paragon-multiplex.co.nz www. paragon-multiplex.co.nz

NICHE AGENCY TAILORS BOUTIQUE SOLUTIONS

STORELINK BUILDS SERVICE OFFERING IN the New Zealand market for the past 28 years, Storelink specialises in retail service solutions, offering sales and merchandising, inventory management and wholesale representation. The 100% New Zealand owned company’s merchandising service continues to rapidly grow and currently represents 50% of its total business. With 325 merchandisers and 18 area managers, Storelink has one of New Zealand’s largest field teams. Sales & merchandising manager Angie Smith says the merchandising side of the business is one of Storelink’s key points of difference and complements the company’s 12 territory sales managers.

“The size, scale and training of our merchandisers really sets us apart in the market and we are upskilling our merchandisers all the time. The breadth of our sales team means we are in front of clients most of the time and are well known in stores,” she says. With growing demand for market intelligence and real time reporting, Storelink has recently invested in a new web based system, which was designed specifically for the company by Konica Minolta. Called The Vault, Smith says the new system provides transparency for suppliers, allowing clients to customise their reports and view photographs of merchandise displays. Created in

CHRISTCHURCH based Paragon Multiplex is a boutique sales and marketing agency dedicated to servicing the grocery sector. Offering a portfolio of services from full sales and merchandising, warehousing, distribution and factoring, Paragon provides tailored packages to suit individual client needs. In the Kiwi market since 1986, director Phillip Coates says that while there is a growing demand for SMA’s, Paragon remains dedicated to its small client base. “We limit the number of suppliers

conjunction with clients, The Vault can be tailored to suit individual client needs. Storelink’s sales department has also increased its service offering, last month calling on 56 Four Squares as part of a three month trial. Smith says the service adds value for its clients with the Four Square format responding to the growing global trend for smaller, convenience type stores. “We are one of the few SMA’s to service Four Square stores and based on the success of this trial we may

and products that we represent so that we can stay focused and in tune with our suppliers. We also restrict our activities to just grocery which helps with the focus,” says Coates. With a staff of more than 35, the company meets with its principals every 13 weeks to keep clients abreast of progress against stated objectives as well as report on trade issues and YTD sales results. Coates says Paragon also recognises the importance of head office relationships, regularly undertaking reviews with PEL, and Foodstuffs. n

roll it out nationwide.” Storelink can also provide clients with VMI and VRP inventory management as part of an annual agreement or short term cover. Smith says its temporary sales service is proving popular with clients, especially as a cover for reps on leave. “We also offer a sales service in areas that may not be geographically viable for clients to service themselves such as Northland, Gisborne and the West Coast,” she says. n

August 2014

I 21

Sales Merchandising & Campaign Activation Specialist

urces

ntation

UNIQUE SMA SERVICE

equired

o.nz

Sales Merchandising

POS Installation & Management

tiv ati

Display Building

Day

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N IT!

Relays

WE CAN ASSIST YOU ACROSS ALL CHANNELS Grocery

Route/Oil

0 NaS a l ewi tion

s de

O M e rc h

Building

Dept Stores

Four Square

ve an r 3 0rs dise

Pharmacy

Hardware

THE BENEFITS • Field reporting via smart device technology • One of New Zealand’s largest sales/merchandising resources • Fully integrated POS activation & merchandising implementation • Significant multi-channel & retailer coverage • Over 25 years of experience • Providing suppliers the ability to flex the resource pool as required

Call or Email Gavin Nixon gavin@thehubnz.co.nz 021 277 0269

O M e rc h

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Speed to Market NPD Cut In

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YOU NAME THE TASK, WE CAN ACTION IT!

training for its vast field team and MERCHANDISING and campaign in addition to its internal training activation specialists The Hub Retail platform staff have the opportunity Solutions and Instore Sales Services to obtain Level 2 are complementary divisions of the WE CAN ASSIST YOU ACROSS ALLCompetenz’s CHANNELS FMCG qualification. More than 80 same company. Run by Gavin Nixon staff members are currently either and Chris Hood, The Hub offers undertaking or have completed the point of sale (POS) warehousing and Grocery Route/Oil course. Co-owner Gavin Nixon says fulfilment facilities for the FMCG the changing retail environment has sector while Instore Sales Services resulted in an acceptance by brand (ISS) provides the store level activation owners who now look to supplement giving suppliers one of the only fully their go-to-market team with a integrated solutions. Operating in New SMA. “Regardless of the size of a Zealand for well over 25 years, The company an SMA complement Hub/ISS is one of the most unique in Fourcan Square Dept Stores your organisation. Offering more the SMA industry and offers significant ve costs and speed of activation, multi-channel and retailer coverage. an r 3 0rs variable Employing close to 300 dise a third party agency can really assist a company to grow its brands,” says merchandisers nationwide, the Nixon. Nixon believes The Hub’s company has one of New Zealand’s client partnerships and unique service largest field teams at its disposal and is Hardware offering ensures client longevity, with able to providePharmacy single day activation. the organisation well placed to take Offering real time field reports, the advantage of future growth. company uses an app compatible “We’re focused on what we do well with smart device technology with and we believe the area of biggest merchandisers uploading images growth is where we have positioned of displays upon completion. The our market offer,” says Nixon. n company has committed to extensive

s de

NZ Owned & Focused

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Chris Hood chris@thehubnz.co.nz 021 94 94 98

100%

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DEMAND FOR SHOPPER MARKETING EXPERTISE Louise Cunningham

to purchase now seen as an essential GLOBAL shopper marketing and component in driving sales. activation company Geometry Global “Shopper marketing is still relatively has launched in New Zealand, merging newActivation in New Zealand and there are few with OgilvyAction to cater to & theCampaign Sales Merchandising Specialist agencies that recognise the important growing demand for local shopper distinction between the ‘consumer’ and marketing expertise. ‘shopper’ mind-set or can provide a With a fully integrated team of 12 complete path to purchase solution.” shopper experts, up from three people With 83 offices in 52 countries, in March last year, Geometry Global Geometry Global is able to tap into this offers full service shopper marketing network to establish best practice and capabilities for the FMCG, QSR and case studies and see if they are suitable oil channels. “This starts with shopper for the Kiwi market. Cunningham insight generation and includes shopper says this provides the company with digital, shopper creative, in-store the tools to gain visibility to talk about activity and the expert management of a message that is more than just these programmes to change shopper price, creating a point of difference behaviour and generate return on for the agency. “There is no shortage investment,” says Geometry Global’s of promotion agencies but the future executive director Louise Cunningham. will be those who have expertise in Cunningham says shopper fully integrated path to purchase marketing has experienced huge NZ Owned & Focused programmes rather than just in-store growth internationally with the ability activity.” n to influence the shopper on the path

sales&merchandisingagencies TOPLINE INVESTS IN STAFF ACTIVE in the New Zealand market for more than 30 years, Topline Marketing provides a full service offering across multiple retailer channels. Headed up by general manager Greg Boyce-Bacon, Topline is a reputable agency representing a range of well known brands. With a nationwide sales and merchandising force regularly calling on stores, Topline makes sure brands maximise their potential in-store. With more

than 85 staff members, services include account management, logistics, importing, storage and marketing. The one stop shop has invested heavily in its business over the past year with refreshed logo, website and new IT platform for clients. Topline has also up-skilled its sales staff, with the entire team and all new staff required to undertake the NZQA approved accreditation. “Our people are our biggest asset and we are committed to their development and they in turn ensure they help us achieve our vision,” says Boyce-Bacon. Boyce-Bacon says there is growing demand in New Zealand for SMA’s with brokerage seen as a cost effective option for small and large businesses. Topline’s relationships with both clients and industry representatives are also helping to grow the business. “We work closely with our customers’ and as we are their ‘eyes and ears’ in-store, we pride ourselves on regular communication, personal service and working together to attain success and growth. We are held in high regard by key industry personnel and have cemented strong relationships with category managers, store owners, buyers and frontline staff,” he says. n

WHAT DO YOU NEED FROM AN SMA? THE sales and marketing agency business is expanding rapidly as more companies recognise the efficiencies this sector is producing. While not there yet, it seems this sector of the industry is heading towards 12% market share in the near future although still a long way from Australia’s 20% and over 50% in America. For those companies still a little unsure about moving to an outsourcing position and following the trend, there are a few simple decisions to be made. Firstly they need to establish just what critical points the company is looking to cover and then consider each of the services that an SMA can provide. Rating those latter services against your own company’s performance and checking their importance to your company is critical. And then consider the additional services that a SMA can provide in the future. The big question is whether it is economical to outsource. Suppliers need to compare the

true cost of their infrastructure such as salaries, holiday accruals, sick leave, replacement costs, fleet management, travel and training as opposed to a straight commission on sales payable to an SMA. The growth in the SMA business shows they are providing the flexibility and resource allocation to help achieve business goals. They are seen to have an absolute focus on retail and the nuances of the market with their core competency in managing the sales channel. SMA’s offer a wide range of services such as field sales teams, key account management, space management, head office presentations, marketing and business planning, demonstrations, new product launches, accounting and logistic management. Of course each company comes with its own unique set of management systems as well as different levels of representation – but it is the future. n

BUILDING BRANDS BY DRIVING SALES

• Sales Representation • Merchandising Support • Re-work Management • • Account Management • Product Presentations • Agency • • Promotional Compliance • Warehousing and Storage Solutions

For more information on full sales & marketing brokerage services contact the Topline team at:

Ph: 09 419 4061 I Fax: 09 419 4063 I www.toplinemarketing.co.nz August 2014

I 23

sales&merchandisingagencies PLUM AGENCIES LAUNCHED Deanna Chiang

NEWCOMER Plum Agencies was established in January this year by experienced FMCG stalwart Deanna Chiang. Offering sales, merchandising and key account management in Auckland, the company is looking to rapidly expand its services to cater to the upper North Island. Already representing sales clients including Nuenfant and D&A Marketing, Plum also handles merchandising for several large multinationals and offers territory manager and temporary sales cover. Chiang says the growing demand for SMA’s in New Zealand is being driven by an increasing number of grocery suppliers moving away from in-house teams. “More and more of the larger companies are trying to offload as much as they can to professionals who specialise in this area and already have great relationships in the industry,” says Chiang. With a strong grocery background including stints at Watties, Arnott’s and Kimberly-Clark, Chiang says Plum’s main point of difference is its handson approach and existing relationships. “We can be categorised as results driven, with strong skills in relationship building, identifying and solving problems, and a particular focus on getting the job done,” she says. While looking to increase its client base, Chiang says the company will remain small in size and focused on providing a quality service. “We’re not looking to represent a lot of companies, we want a select few and we want to help them grow their brands,” she says. n

MOVE TO SMA TO MAINTAIN MOMENTUM THE Sales Dept. caters to the needs of the market through a complete New Zealand solution covering strategy and operations management including sales, supply chain and financial administration. The Sales Dept. was started two years ago to provide a unique suite of outsourced services not currently catered for by the market with the business now employing in excess of 70 people across multiple channels. A relatively new player in the market, The Sales Dept.’s multiple clients are responsible for annual sales in excess of $50 million and cover both ends of the spectrum from large multinationals through to small Kiwi start-ups. “Being able to integrate and tailor packages to meet the servicing needs of smaller businesses and the rigorous requirements of multinationals and deliver results sets us apart from other sales agencies and brokers,” says CEO Tim Holt. Holt believes that the outsourcing of functions to SMA’s in New Zealand will continue to grow as retail prices remain flat or decline, margins continue to be squeezed and operating costs go up. “The increasing trend towards SMA’s is because companies will be forced to adapt to this new operating environment and can no longer carry the overheads and costs of a traditional in-house model,” he says. Investing a significant amount of time with potential clients before taking them on allows The Sales Dept. to make sure they understand their clients’ needs and are the right fit.

Left to right: Tim Holt, Carl Holbrook

“We have a single-minded focus on adding value to our clients’ businesses. A client may have a good product but might need help with packaging, pricing and promotional activity and we have the expertise and experience to do so. Their success is our success.” Holt says The Sales Dept represents several overseas clients, who often struggle with the dynamics of the local grocery sector. “The different grocery structure in New Zealand makes it difficult for offshore suppliers to operate successfully without a team on the ground which is why many of the larger international clients enlist a New Zealand focused SMA. We, The Sales Dept. are able to provide that solution.” n

SALES QUALIFICATIONS BRING PROFESSIONALISM AND RESULTS SINCE the launch of the Competenz sales qualifications in 2012, more than 1000 people have signed up to grow their sales and distribution skills in organisations as diverse as Cottonsoft and Fonterra. The feedback from new and experienced sales professionals has been very positive, particularly relating to being able to demonstrate new skills on the job as part of the assessment. “The qualification is a cost-effective solution that can be rolled out easily in SMEs or mapped back to internal training material in organisations with established training structures,” says Jim MacBride-Stewart, GM of traineeships and business development at Competenz. MacBride-Stewart and other members of the Competenz team have all worked in sales in FMCG organisations so they were able to tailor the course content to the needs of working professionals, including e-Learning modules.

The qualifications are endorsed by the Food & Grocery Council with Fonterra saying the Level 3 National Certificate in Sales qualification provided “increased sales, increases in Coalface survey results, improved commerciality and selling ability, and increased confidence and capability within the team.” Cottonsoft also found their trained professionals benefitted greatly from the course content. “They have learnt new things and reinforced some of the practices they have been doing and reinforced some of the practices they should have been doing but have chosen to ignore.” When they complete Level 3, learners have the opportunity to progress to a National Certificate in Sales Level 4, looking at team management and other more advanced skills. For more information, please contact Competenz on 0800 526 1800. n

• R E T A I L S A L E S • M E R C H A N D I S I N G & D E M O N S T R A T I O N S • C O N S U LT I N G • We are an established sales, marketing, food brokering and consultancy company specialising in : • Developing profitable business platforms for food industry clients • Identifying and exploiting market opportunities and optimising business potential • Reducing infrastructural costs and removing contingent liabilities for food companies

FREEPHONE: 0800 949 333 • Email: rothford@foodbrokers.co.nz

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IS THE F IN YOUR FMCG NOT F ENOUGH?

OUTSOURCING ON THE RISE ROTHFORD has been servicing New Zealand’s FMCG and foodservice sectors since 1996, providing clients with merchandising, credit management, sales and promotional execution as well as in-depth reporting. The established agency also offers distribution drives and new product roll outs to support marketing and NPD initiatives. Representing medium to large grocery players, Rothford has longstanding partnerships with its clients and is based on a set of core values – honesty, enthusiasm, accountability, reliability and tenacity. With over 70 staff nationwide, Rothford offers store call frequency of at least twice per week to the majority of supermarkets in the country’s main urban areas with its experienced team benefiting from internal and external (Competenz) training. Rothford’s field staff are linked through the company’s integrated sales management and replenishment system (Cube™), providing clients with reporting and market visual clarity in real time. Owner Tony Trilford says the company has stood the test of time because it delivers on its promises. “Our aim is not to be the biggest in the country, just the best. At Rothford we try not to overpromise, just to over perform,” he says. Trilford says the demand for SMA’s is growing and will continue to grow with New Zealand being a long way behind other countries in the share of sales to market that SMA’s represent. “More companies are turning to outsourcing discretionary or non integral parts of their business model and look to experts in specific parts of the chain – whether that be physical distribution and

If the F word is not a good description of your brand’s sales growth then it’s time you changed the game. And The Sales Dept. will help you do it. Tony Trilford

Simon Rangihaeata

warehousing, production, administration or in market management – as it makes financial sense to utilise established providers who understand implicitly the requirements of their part of the chain and provide a large scale infrastructure at a fraction of the cost of a proprietary model.” Outsourcing allows brand owners to focus on their core competencies, driving their brands and products without the costs associated with in-house warehousing, sales/distribution and infrastructure management. Trilford says the challenge for the industry is to ensure the level of skill, professionalism and expertise that competent SMA’s offer to their clients is of a level suited to the realistic expectations of both suppliers and customers. “It is critical that any supplier new to using an SMA ensures they are working with the right company and one that can actually deliver what they say they can,” he says. n

NEW MOBILE RETAIL SELLING SOLUTION A NEW mobile selling solution is set to revolutionise store execution by putting integrated, intelligent outlet data on more than 320,000 retail outlets throughout Australia and New Zealand at the fingertips of FMCG companies and their field teams for the first time. StayinFront Sales Locator is a complete solution and combines software, data and services to provide sales and competitive data on retail outlets nationally. The solution enables sales reps to identify and capitalise on key opportunities in the field by providing strategic insight into a territory, customers and prospects, including the relative size of each opportunity. The unique combination of outlet data, map-based journey planning tools and ongoing refreshes and data maintenance enables field

teams to become more efficient and productive, sell more and discover better ways to manage a territory. The intelligent outlet data integrates seamlessly into the StayinFront mobile sales force automation solution with processes that regularly update, independently verify and maintain the data. The data is presented in easy-to-use dashboards, and on-board mapping tools direct the representative to the store – all on the mobile device. “StayinFront Sales Locator is a breakthrough solution that provides consumer goods companies and their field forces with fact-based intelligence and tools to do more, know more and sell more,” says Kerrie-Anne Turner, StayingFront’s vice president and manager director Australia. n

We’re unique. We’re full-service, and we take a strategic approach. Whether you’re in a large multinational or cutting your way as a small business, our total capability can be tailored precisely to fit the needs of your operation. Above all, we’ll deliver the main thing you’ve been waiting for – more F in your FMCG. Change your game now by calling Tim Holt on 09 916 4256 or email admin@thesalesdept.co.nz

CHANGE THE GAME

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NEW ECO BRAND PAPER distribution company BJ Ball has entered the household cleaning market with its Green Kleen range being launched this month. Available in six variants including multi-purpose spray, dishwashing liquid and floor cleaner, the products are all Envirochoice certified, 99% natural and locally made. Green Kleen general manager Ken Collin says the range responds to consumer needs in terms of product efficacy, environmental concerns and is price competitive with leading noneco brands. “We believe Green Kleen is the first product launched in NZ to

BUMPER ADDS SLICES

COOKIE Time has introduced new Bumper Slices in White Chocolate Blondie and Double Chocolate Brownie variants. A modern take on the traditional school slice, the new additions are made with real chocolate and contain no added colours, artificial flavours or palm oil. Coinciding with the launch of Bumper Slices, Cookie Time has also released new look packs for its Bumper Bar range. The Bumper Bar and Slice offering responds to the growing consumer trend towards healthy snacking. n

offer all three in the one package. Independent tests confirm the efficacy and the other key needs are covered off too,” says Collin. A new website and advertising support for the range will begin in the coming months. n

COFFEE SYRUP ADDED

ICONIC dried fruit brand Sunreal has added to its market leading range with the launch of snack packs in dried apricot and pitted prune variants. Each 200g pack contains eight ready-to-eat portions, making the product an ideal lunchbox addition. Featuring new look packaging, Sunreal’s Snack Packs offer the consumer a healthy snacking alterative with great retailer margins. n

FINEST Foods has launched a range of value coffee syrups under its Supreme brand. Available in four variants – vanilla, caramel, hazelnut and chai – the café syrups are offered in 500ml bottles and are being manufactured in Auckland’s New Lynn. The new range from Supreme follows a rebrand of its milkshake syrups range late last year. n

NEW COCONUT LINES COCONUT specialist H2COCO has increased its offering this month with two new products joining the range. The brand’s newly launched Organic Virgin Coconut Oil is cold pressed and gluten free. Offered in a 500g jar, the versatile product is suitable for eating, cooking, spreading and can also be used as a beauty product. H2COCO’s 100% natural coconut water has been released in a new 1 litre pack. The new size is available nationwide and is already proving popular with loyal and high-usage consumers. n

NEW TOMATO PASTE

DELMAINE has introduced a double concentrated French tomato paste made with rich sun ripened tomatoes for a more intense flavor. Simple to use the 4 x 70g individually sealed pottles contain no added flavours, colours, preservatives, sugar or salt and are ideal for adding to sauces, stews and soups as a flavour base and thickener. n

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WILSON Consumer’s DYC brand is running its Spring Clean promotion for the second year running, inspiring consumers with alternative uses for its vinegar. The national on-pack promotion is set to drive category growth with consumers being offered a free cleaning kit from DYC which includes a trigger spray bottle, micro fibre cloth and mini booklet. n

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YUM CHA AT HOME IMPORTER GBACO has launched a range of yum cha suitable for boiling. Manufactured in Australia, Chan’s Yum Cha at Home is designed to appeal to European consumers and is available in Prawn Hargow, Vegetarian Shitake and Steamed

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Selection options. Its unique formulation allows for the yum cha to be boiled without disintegrating, with the authentic range being handmade and MSG free. On display at the recent NZ Fine Food show, the Chan’s range has been well received by consumers. n

NEW to market brand VitalZing has launched a range of enhanced waters in five variants including Electrolyte, Green Tea, and Performance. The Kiwi owned range uses a unique dosage cap called BlastMax which allows active ingredients to be stored in powder form before being blasted and shaken into the water directly before drinking. VitalZing has been developed by top nutritionists and contains no sugar, artificial ingredients, stabilisers or preservatives. “Traditionally, all drink companies have had to consider the shelf stability of the products they’re creating, at the expense of the products’ effectiveness and nutrition,” says Mikel Anderson, the inventor of BlastMax caps. n

ANATHOTH PRODUCTS

BARKER’S has added to Anathoth Farm brand with Tropical Jam and Hot Chilli Relish joining the range. Its Tropical Jam variant combines mango, pineapple, guava and passionfruit and is ideal as a spread for muffins and scones. With the brand’s Sweet Chilli Relish already a huge hit with Kiwi consumers, Barker’s have introduced a hot version which is an ideal accompaniment for meat, cheese, burgers and pies. Anathoth’s preserves are batch-made on the family farm using the time-honoured traditional recipes. n

NEW RECIPE CHANGE FOR BARKER’S ICONIC Kiwi brand Barker’s of Geraldine has reformulated and repackaged its jam range with two new variants added. Seedless NZ Bramble Berries and Blueberries with Cranberries have joined the range, coinciding with the biggest change to the Barker’s recipes in its 45 years of jam manufacturing. The revamped preserves and curds now contain 20% more fruit, 17% less sugar with the new look packs paying homage to the company’s

45 years on the family farm. Michael Barker says the new recipes respond to the growing trend towards reduced sugar consumption. “Our philosophy has always been to make the best products in the category and we don’t believe a jam with 65% sugar is the best any more. And neither do the UK, France or Germany who have all changed their jam regulations in recent times to reduce the minimum sugar content and keep abreast of changing lifestyles,” says Barker. The new formulations mean the Barker’s range is no longer classified as a jam in New Zealand and Australia, as the sugar content is below the 65% required. “We set out to make the best jam, and that has taken us outside the local jam laws, until such a time as our food regulations catch up with worldwide trends,” says Barker. n

TCC’S ROASTED COCONUT CHIPS

TCC, Thailand’s largest manufacturer of coconut products, has introduced its renowned Roasted Coconut Chips to the Kiwi market. Represented locally by importer Oriental Merchant, TCC’s new addition is gluten and preservative free and is offered in a 30g container. Ideal for baking, Roasted Coconut Chips can also be used to add texture and flavour to salads and curry dishes. n

LEGUMES JOIN RANGE GREGG’S NEW PACKS

CEREBOS Gregg’s has rolled out a soft packaging change for its popular Gregg’s herb and spices range. The new packs offer improved functionality with zip top closure, clear side of pack differentiation, fresh imagery, and flavour profiles that communicates the differences between variants. The market leader has the largest range of single herbs and spices in the category with the packaging changes being supported by a TVC campaign. n

BAKING brand Sun Valley has launched a range of legumes ideal for soups, slow cookers and casseroles. The range includes Kidney Beans, Chickpeas, Four Bean Mix, and Haricot Beans and is available in 500g packs. Featuring eye-catching packaging, Sun Valley’s new value offering has great stand-out on shelf and provides significant retailer margins. n

PERI-PERI SALT CEREBOS Gregg’s continues to provide innovation to the salt category with Peri Peri flavoured salt released this month. The launch is being supported by a $20k consumer education campaign which is set to boost sales of the brand’s entire flavoured salt offering, which has provided $255k in incremental sales to the salt category. Instore demonstrations and coupons will help Cerebos to capitalise on the growing awareness of Peri-Peri, which has gained popularity through QSR and foodservice outlets. n

NEW KIWI CHOC

KIWI manufacturers Whittaker’s and Griffin’s have teamed-up to release a limited edition Whittaker’s Hundreds and Thousands chocolate block. Made with white chocolate and crafted with natural flavour and colours, the 250g block recreates the look and taste of the famous biscuit and features biscuit pieces and loose hundreds and thousands. “The combination of Whittaker’s chocolate – the quality of which we ensure through our signature bean to bar process – with treasured Hundreds and Thousands biscuits is a fun and delicious new product that is unique on the market,” says Whittaker’s marketing manager Holly Whittaker. n

MOTHER EARTH’S HONEY PROLIFE has entered the honey category this month with five versatile products from its Mother Earth brand. Produced from New Zealand bees, Mother Earth’s range encompasses Clover Blend, Manuka and Liquid honey in varying pack sizes, creating a strong brand presence in a market that is fragmented by multiple suppliers. The brand’s liquid honey offers New Zealand’s first upside down squeezable honey bottle

with a non-drip mechanism making it ideal for cooking and baking. The launch is being supported with a Mother Earth brand TVC running from August to October with a rate card value of $750k. n

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The new Scotch-BriteTM Stay Clean range brings innovation to the Sponges Scourer and Wipes Category, driving incremental sales and accelerated growth For more information contact your KML Sales Representative Ph: 09 475 0940 Website: www.kml.net.nz

Scotch-Brite is a trademark of 3M

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THE DIFFERENCE BETWEEN THE GOOD AND THE BEST

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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.

PALETA ESTABLISHED by Hayden Lomax and Jeremy Schmid in 2012, Paleta manufacture a range of gourmet ice blocks. Available in seven variants including Feijoa & Pear, Passionfruit & Lime, Mango, Boysenberry Smoothie and Raspberries & Cream, the range is hand made in small batches at The Officers Mess in Fort Takapuna. Paleta’s sophisticated ice blocks are currently available through Moore Wilson’s and Farro Fresh with its Raspberries & Cream option picking up a Cuisine Artisan award earlier this year. Lomax says the brand’s offering differs to others on the market as they are made with whole bits of fruit and are similar to the paletas found on the streets of South America. “Fruit is the main ingredient. We don’t pasteurise any of our mixes so none of the flavour is lost. They are natural, have no colours and less sugar than your regular ice block,” he says. Lomax believes the range has been so successful as consumers are willing to pay more for premium and high quality products. The duo is currently working on new formats and flavours with a multipack option for grocery potentially in the pipeline. For more information please visit www. paleta.co.nz

POPPY & OLIVE FOODIE Sophie Williamson left her government job to found Olive & Poppy in October last year. The artisan manufacturer produces five natural nut butters under the Poppy & Olive brand with the range including Organic Coconut Butter, Crunchy Almond Butter and Chocolate Hazelnut Butter. Manufactured in Auckland’s CBD, the brand has already been picked up by the likes of Farro Fresh and Williamson says she looking

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to gain further distribution through retail channels. “I began (and still do) sell the range at various farmers’ markets around Auckland, and have recently made the move into retail. I definitely consider supermarkets a growth area for the brand,” she says. Williamson believes her offering is unique in New Zealand, with each product made with 100% nuts and quality ingredients. “There is no other Crunchy Almond Butter available on the market. Our Chocolate Hazelnut Butter is made from 80% hazelnuts and 20% high quality New Zealand chocolate; this makes a far superior and healthier alternative to Nutella.” Poppy & Olive’s early success has been attributed to increasing consumer demand for unique locally produced food. “People like to know where their products are coming from and like to support small local businesses, as opposed to the large corporates who mass produce. The ‘wholefoods movement’ is also a contributing factor and is encouraging people to choose high quality, natural foods,” says Williamson. Williamson is currently working on new products to extend the Poppy & Olive range in the future. For more information please visit www.poppyandolive.co.nz

FEVER TREE FEVER Tree’s premium range of natural mixers has been credited with restoring quality and taste to a category which has been stagnant and flat in recent years. Founded by Charles Rolls (ex Plymouth Gin) and Tim Warrillow in 2005, the Fever Tree offering encompasses soda water, Indian tonic water, lemonade, ginger beer and ginger ale in 200ml, 4x200ml and 500ml formats. Containing no artificial flavours, colours, or preservatives, Fever Tree uses champagne carbonation to create fine bubbles. Ingredients are sourced from remote locations including Congo, Nigeria, Cochin and the Ivory Coast before being manufactured in the UK. The brand’s Indian Tonic Water is the only one to use quinine from a plantation on the Rwanda/Congo border while its Ginger Beer and Ginger Ale use a blend of gingers sourced from different areas. Available in 38 markets, Fever Tree has been stocked in New Zealand since December last year and is handled locally by Eurovintage. Already proving popular in both retail and foodservice sectors, the range has won a host of international awards including UK’s Fastest Growing International Drinks Company. For more information please visit www. eurovintage.co.nz

MARKETING COMPLIANCE RISK INCREASED ON 17 June 2014 the Consumer Law Reform Bill brought into effect a number of changes to consumer laws. One of the most relevant changes for the food and beverage industry was the introduction of “unsubstantiated representations” under the Fair Trading Act 1986 (“FTA”). What does this mean for your business? Consumers live in a fast-paced world and expect to rely on the promoted characteristics of competing food and beverage products when making speedy purchasing decisions in their local supermarket, grocery store, dairy, liquor outlet or similar. Nip in, nip out. Buying decisions are made quickly, sometimes impulsively, without much attention to detail. Recent changes to the FTA provide consumers with additional rights and increase businesses’ obligations to consumers. The corollary is that producers and sellers have increased obligations. One of the key changes for the FMCG industry is the inclusion of a prohibition on making “unsubstantiated representations” under the FTA. This change means that producers must ensure they are able to show that any representations made on food and beverage products or in connection with the promotion of these products can be substantiated at the time the representations are made. Importantly, this is irrespective

of whether or not the representations are accurate. Accurate but unsubstantiated representations will still breach the new provision under the FTA. “Making bones stronger than your average trim milk product”; “bursting with goodness, less than 50% sugar”’ “Long weekend, 50% off sale” are claims food and beverage manufacturers, suppliers and retailers all make to attract consumers. With the introduction of the new “unsubstantiated representations” provision, it is key you ensure you have reasonable grounds for making the claims and research and/or evidence to substantiate them. To close off initial enquiries before they waste your valuable time and to avoid pitfalls, undertake research and/ or retain records which support each marketing representation you make before you make them to consumers. The level of substantiation required will depend on the claim being made. This change places a significant duty/burden on businesses to review all representations before they are released to consumers and to ensure an appropriate level of documentation is retained in case the claims being made are brought into question. The new provision does not apply to a representation that a reasonable person would not expect to be substantiated, for example, “a

little piece of heaven in every slice” or similar. The basis for this is that obvious exaggerations are unlikely to mislead consumers. Bear in mind though that you must not misrepresent your products or suggest they have characteristics they do not in fact possess. The new provision could also extend to making unsubstantiated representations as to ownership of intellectual property rights such as the expansive use of the ©, ® or ™ symbols. Unusually, the unsubstantiated representations provision can only be enforced by the Commerce Commission, not by consumers, the rationale behind this being to avoid its misuse by competitors to reduce competition. But make no mistake, the source of initial information/ complaints will almost surely be your competitors in the majority. It is important that you give attention to the new provision and address it internally as soon as possible. The new increased penalties under the FTA are dramatic; if you are found to have made unsubstantiated representations you will be liable to the increased penalties which include an increase from $200,000 to $600,000 for body corporates. Any business that is found to make an unsubstantiated representation risks breaching the new provision irrespective of whether it actually manufactures or supplies the FMCG product or created the advertising material for it. Retailers such as supermarkets may also be liable for

the promotion of unsubstantiated representations about FMCG products to consumers just as the source of the representations may be, the manufacturers or suppliers. The message is simple and clear, greater care is now required. For further information or practical advice, please contact the writer at: sophie.thoreau@baldwins.com n

Sophie Thoreau Senior Associate Baldwins Intellectual Property

SAINSBURY TO RECYCLE FOOD CRATES

IN A bid to boost efficiency, retailer Sainsbury’s is set to recycle its old food crates into new crates made from 100% recycled material. In an UK industry first, the conversion process involves grinding down two million old, inefficient crates into plastic flakes, which are then washed and dried before being transformed into 100% recycled food safe crates. With minimal waste the process creates a sustainable packaging cycle, and is expected to result in all crates being standardised, stacking together more efficiently and significantly reducing empty crate transport.

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LAMB & KUMARA VOTED NZ’S BEST PIE category winners, collecting the gold award for its steak & gravy pie. Gourmet Foods was awarded the best commercial/wholesale mince & cheese pie while well known Browns Bay bakery Bernie’s Bakery & Café was judged the best mince & cheese. n

CLAREVILLE Bakery’s lamb cutlet and kumara mash pie has beaten 4832 pies from 533 bakeries to take out the Supreme Award at this year’s Bakels New Zealand Pie Awards. Held in Auckland last month, Pak’nSave Petone was amongst the 12

lastword

Peter Mitchell

THE Labour Party is apparently less than happy with Supermarket News following its comment recently that the Commerce Commission response to complaints about Countdown’s relationship with some suppliers was likely to be a go-nowhere affair. I asked a Labour consumer spokesperson for a comment on their trade ombudsman stance and got a particularly unpleasant phone call from their shadow Commerce minister Clayton Cosgrove. He was of the opinion that we were just a trouble-making publication and he had checked to see if our comment was “actionable”. It’s hard being the messenger simply reporting industry views without having to put up with this political nonsense. Anyway, he said he wouldn’t give me a fresh opinion on an ombudsman “because you’ll just twist my words..” He told me to use months old press releases.

on the box. The answer might surprise us and I don’t think it will be a friendly response.

I THINK I’ll stick to buying beer in my local off-license now instead of a supermarket. Having a barbecue the other day and saw cases were being discounted by 10% so I bought two. The assistant multiplied two cases by 10% and arrived at a 20% discount. And they’re giving this guy a vote at the next election.

YOU may not be aware that there is further integration with the single European currency, the Euro. All residents of the UK have been told that they can no longer use the phrase “Spending A Penny” after the end of this year. From that date, the correct term with be “Euronating” which should be a great relief to everyone.

INTERESTING to see third party couponing creeping in again - that’s coupons initiated by a party other than a brand owner without prior retailer agreement. This is an issue that hasn’t been around for a number of years and of course new marketing and product people at most suppliers weren’t in that role when it blew up last time. Nothing like an old idea being recirculated as some great fresh new concept by youngsters who have never heard of the industry’s Coupon Code of Practice.

THERE’S a lot of mullarkey being forced on consumers these days. For the last few years, the “food movement” for lack of a better term, has focused on telling stories about New Zealand of the rolling green hills and picturesque cow pastures. But have those advertising people ever thought that this does little to tell consumers about the food journey from farm to fork. It’s

WE’RE all getting a bit older but I do still recall when I was a boy, my mother used to send me down to our local store with two shillings and I’d come back with five potatoes, two loaves of bread, three bottles of milk, a big piece of cheese, a box of tea and six eggs. You can’t do that now with all the security cameras.

THERE is plenty of talk around the industry that our television advertising is simply abominable. There seems to be no big idea in our advertising at present – both supplier and retail – and the experts reckon it is just boring us to death. The big question is what the consumer thinks about what we are doing

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THIS mate of mine was recalling the time he took his son out for his first pint. He said he got him a Lion Red and son didn’t like it so he drank it himself. Then he got a Carlsberg and didn’t like that either, so he drank it himself. It was the same with a Guinness and then a cider. By the time he got down to the whisky, he said he could hardly push the pram. HAVE we all noticed that our shoppers are living better for less spend these days. Certainly the price competition is hotter than ever and despite the vague stories that abound over retail buyers screwing the suppliers, the consumer has turned up as the real winner. On that basis, it’s hard to protest against the tactics of the retail giants whom the government should praise for keeping down the cost of living.

almost as bad as cooking shows on tv celebrating chefs with skills no-one needs (who wants to make an appetizer out of five unrelated items ?) And how about those experts giving diet advice on quite questionable science along with restaurants being reviewed by people with no knowledge of restaurants or even reviewing. DURING violent thunderstorm, a mother was tucking her young son into bed and as she turned off the light, the little one asked if mummy would sleep in his bed. The mother smiled and gave him a reassuring hug saying she had to sleep in daddy’s room. There was a long silence before a shaky little voice said:”The big sissy …”