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ANDY ROUTLEY: “The difference between DB and other companies claiming that they also do this is that we truly do walk the talk.” (see page 6)
CHANGES TO COUNTRY OF ORIGIN RULES UNLIKELY HERE IN spite of Australia changing its labeling requirements this month to detail more fully the source of prime ingredients in processed food, it seems unlikely that New Zealand will be faced with more stringent country of origin requirements – although the industry is closely watching the Australian situation In New Zealand, the general opinion from government, the Ministry of Primary Industries and the Food & Grocery Council is that we should stick with the status quo because there seems no significant evidence – apart from Green Party persistence – that there is a problem to solve. This may well be ignoring a tendency for consumers, if pressed, to want to know where the food they are eating comes from. But generally, unlike Australia, there has been no consumer pressure to produce origin information, “The whole debate in New Zealand has really been superceded by extra information provided in-store or on pack by either retailers or manufacturers,”
said FGC ceo Katherine Rich. “If there are gaps in the information, then those lobbying for a mandatory system
here need to show us some evidence because as far as we are concerned, the information is already there.” A number of processed food
INDUSTRY BEST TO IGNORE UNIVERSITY “POLITICKING” THE Auckland University’s School of Population Health, an ongoing critic of the food and supermarket industry, must be running out of funding that it needs to create public attention over its latest claims – because it is just politicking at its best. The school has continued making radical claims over many years, most of which have been ridiculed by the industry and the latest are as silly and irresponsible as always. The grocery industry has to believe that the attention seeking pronouncements are simply to keep their department in front
of University funders. None of us could believe that expensive research could reveal that 85% of packaged foods in supermarkets are classified as being “ultraprocessed” – wow, what a revelation. This particular research, one of two “staggering” projects, says that ultraprocessed foods have been altered by sweeteners, salt and fat that turns them into products that are sometimes unrecognizable from the original items. Included in this category are frozen potato products such as chips and hash browns, cordial bases, flavoured drinks, meat alternatives and jam spreads among
SUPPORT COMPANIES MERGE
manufacturers already provide basic source information and a voluntary country of origin labeling system for fresh produce has been in place for years at retail level. “I’ve heard some commentators pretend the information isn’t available in supermarkets, but that’s simply not true,” said Rich. This is not quite the case in Australia where a recent consumer survey showed that perhaps as much as 60% of packaged supermarket product did not reveal where the ingredients were sourced. This research also noted that the top reason given for wanting the information was a desire to support local manufacturing and primary producers. At the same time, this may well be an opportunity for New Zealand producers to voluntarily clarify predominant content at times of various label changes or label production runs rather than continuing with vague and confusing information – the changes do need to be clear and meaningful. n
TWO prominent retail support companies have merged their operations this month following the acquisition of the brand activation company Product Placements 2011 Ltd (PPL) by the Albany-based Merchandiser Support Team (MST). Both companies say they have a similar service, people and product focused approach and both have grown organically over recent years. PPL director Merilyn Havler is stepping back from her company but is remaining with the team in a consultancy role. General manager Zekda Botes will remain with the merged operation. MST managing director Rod Smith whose company has delivered national in-store merchandising for the past 10 years, said the fit of the two companies could not be better and fresh growth was promised. n
other things. To say that this “ultra processing” poses unnecessarily large exposure to unhealthy food products in New Zealand, is just nonsense – they should try looking at supermarkets in other parts of the world. At the same time, the school has also come out with criticism of breakfast
product suppliers and its work there is even more irresponsible nonsense. Both suppliers and retailers would do well to ignore this pointless academic posturing because the industry does a great job of providing a variety of both fresh and processed products that certainly seems to suit the consumer. n
HYPOCRISY ON PRICING SUPERMARKET News agrees with the FGC that Auckland University researchers are a bunch of hypocrites. They are rightly saying that price forms a barrier to lower socio-economic consumers buying healthier food. But in its drive to make
supermarket shopping a healthier experience, those same academics have called for a blanket 20% food tax on bread, milk, eggs, dairy and meat. As the FGC says, it would be one of the most regressive taxes ever proposed in New Zealand. n
contents 06 Acorn Group 13 ANUGA 16 Store Check 22 Showcase Australia 26 Artisan
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editorialcomment GETTING OUR HEADS OUT OF THE SAND DESPITE a number of our industry leaders wishing to avoid the issue of a grocery code of practice now in place in Australia, we can’t afford to continue to put our heads in the sand and ignore something that the politicians just might decide is good for us. We all know that politicians often make uninformed decisions that make them look good in front of the electorate – and grocery is an area that definitely attracts publicity and attention. While we all know that Foodstuffs and Countdown will continue to make the rules of engagement simply because they are buyers, the chances of the Commerce Commission stepping in on behalf of any individual companies who think they have been hard done by, is really remote – and the time factor and general antagonism of complaining about any major issues makes it a waste of effort.
If we could produce a simple set of rules with an agreed arbitrator and put this voluntary package together, the job would be mainly done in the view of the outside world (that means politicians and some pressure groups). The development of the code in Australia was an industry led initiative that set about improving commercial relationships in the food and grocery sector and it won’t happen here unless it is also industry led. The last thing we want is any outsiders getting involved and forcing a legislative approach. The possibility of it getting tougher out there for suppliers is a thought that is just around the corner. PETER MITCHELL, Publisher
KIWI’S WIN AT 2015 HOT SAUCE AWARDS
NEW Zealand gained three World Championships and three Placings at this year’s World Hot Sauce Awards. The American-based World Hot Sauce Awards are considered the most prestigious and coveted Chilli awards in the world. This year over 1000 products were entered by 213 companies representing 13 Countries with five New Zealand Chilli companies winning awards at the ceremony held in Louisiana. Culley’s were awarded gold and the title of World Champion in the hot Category for Culley’s Bhut Jolokia which is a sweet hot sauce and one of Culley’s original recipes. They also received 2nd Place for their Culley’s Chipotle Ketchup. Fire Dragon Chillies’ Dragons Fury was awarded gold, defending their 2014 title of World Champion in the Ultra Hot section. The Dragons Fury is New Zealand’s hottest chilli sauce and is made with 100% New Zealand produce, with all chillies grown by Fire Dragon in the Hokianga.
Huffman’s Sauces were awarded gold and the title of World Champion in the Pepper Blend category for their Huffman’s Chilli Pepper Hot Sauce - an all-purpose food and beverage invigorator crafted to lift the flavours of anything it’s added to. Gringo Killer were the 2nd place winner in the chipotle section with their Gringo Killer Woodsmoked Bhutt Burn chilli sauce made with smoked Trinidad scorpions grown spray free in West Auckland. HOTttASs Chillis’ “Pacific Burn” is a mango and coconut chilli sauce that won 3rd place in the Fruit based section. n
NEW RECYCLING PROGRAMME COUNTDOWN and Foodstuffs have announced that they will join the soft plastics recycling programme promoted by Minister for the Environment Dr Nick Smith and the Packaging Forum last month. The recycling scheme, which is to be managed by
NZ COMPANY RECOGNISED AT STAR AWARDS GEOMETRY Global New Zealand is a finalist in the 2015 ANZ APMA Star Awards with two different shopper and activation campaigns for Sealord. “This is the first time we have entered, given we have only been around just over 12 months now, so we are delighted,” said the company’s executive director, Louise Cunningham. The APMA Star Awards acknowledges and rewards New Zealand and Australian agencies and clients for their creativity and strategic prowess in today’s highly competitive marketplace. n
JORDAN MOVES ON NEXT MONTH
FOODSTUFFS NI managing director Murray Jordan steps down in the next few weeks after 11 years in the industry where he began at the wholesaler in the property division. His role has been taken over by Chris Quinn, formerly with Spark,who has been working in a shadow role at the company for the past few months. n
the Packaging Forum and supported by the government, will commence in September with the roll out starting in Auckland followed by expansion to the Waikato, Wellington, Canterbury, Otago, Bay of Plenty, Manawatu and other regions over the next three years. The objective is to provide access to recycle soft plastics to approximately 70% of all New Zealanders. The industry-led initiative allows customers to return plastic bags to participating stores after use, and they will be collected for recycling, and turned into useful public goods, like children’s playground equipment. n
POSITIVE STEPS TO HEALTHY LIVES WHILE public health activists in New Zealand continue to plus for food bans and taxes, the food industry is in fact engaging people in a positive way to encourage healthier lives. This comment came from the Food & Grocery Council following on from Nestle’s recent launch of its Choose Wellness programme that takes a whole of life approach to good health. More than 50,000 New Zealanders have participated in the quiz initiative to date that is designed to tell consumers more about themselves and their lifestyles. Depending on the answers, individuals can receive tailored personal advice that many have already found encouraging. A number of other companies in the industry are also working on healthy consumer programmes and play their part in nutrition advice in addition to modifying products to meet modern demands. 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 2015 ISSN NO. 1173-3365
PUBLISHER Peter Mitchell, peter@reviewmags.com
SENIOR DESIGNER Raymund Sarmiento, raymund@reviewmags.com
MANAGING DIRECTOR Tania Walters, tania@reviewmags.com
CIRCULATION & DISTRIBUTION Kieran Mitchell, kieran@reviewmags.com
EDITORIAL TEAM Jo-lene Mahon, jolene@reviewmags.com Sarah Mitchell, sarah@reviewmags.com Thomas Fowler, tommie@reviewmags.com
Suite 9, Level 3, 20 Augustus Tce Parnell, Auckland PO Box 37140 Parnell, Auckland Tel (09) 3040142 Fax (09) 3772794
ADVERTISING SALES Felicity-Anne Flack, felicity@reviewmags.com
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SUPERMARKETNEWS SUPPORTS:
McCAIN $10MILLION EXPANSION
TWENTY COUNTDOWN SITES FOR SALE AND LEASEBACK THE industry’s (and the country’s) largest individual employer in Progressive Enterprises has put twenty of its supermarket sites up for sale and leaseback – and the offer is attracting international interest. Having such a major committed tenant backed by Woolworths with it’s A-grade Standard & Poors credit rating has given a high degree of confidence to investors looking at what is the largest portfolio of supermarket sites offered in New Zealand and Asia-Pacific. The Countdown supermarkets are in Auckland’s Browns Bay, Greenlane, Highland Park, Meadowbank,
Onehunga and Papakura. Although not on the original schedule, the Paeroa site has also been added to the list. In the same region, the Morrinsville site is up for sale as well. In Wellington, the sites in the sale portfolio are Johnsonville, Kilbirne, Lower Hutt and two in the Upper Hutt area. In the South Island, locations include Blenheim, Beckenham in Christchurch, Kaiapoi, Timaru, Dunedin and Invercargill. Also for sale is the Queenstown Fresh Choice site. The nett lettable space covers almost 72,000 sqm and the majority have up to 20 year leases. n
GRIFFINS FAILS TRADEMARK BID PHILLIPINES owned Griffins applied two years ago to have Pepsi-owned Bluebird’s CC trademarks revoked but a hearing in Auckland before the Assistant Commissioner of Trade Marks has failed. Bluebird has retained the trademarks and also the slogan “only CC’s is tasting like these…” despite not using them over the past five years although they were introduced again earlier this but long after the trademark action was started. The Commissioner accepted that since the early 1980’s, Bluebird had sold tens of millions of dollars of products under the brand and the company had a residual reputation for the trademark. n
WELLINGTON BREWERS SHINE IN PORTLAND UNITED States craft beer distributors, retailers and media got a taste of Wellington’s finest brews at an exclusive trade event in Oregon last month. Panhead, Tuatara, Yeastie Boys, Garage Project and Parrot Dog were the featured international brewers at this year’s Oregon Brewers Festival. Each brewer introduced their company and presented one of their beers with a matched dish created by Sheperd Elliott, chef at award-winning Wellington restaurant Ti Kouka.
“It’s great to be showcasing our beer in Portland, which we consider to be setting the standard for craft beer worldwide,” said Stu McKinlay of Yeastie Boys. Clyde Burney, Vice President of Beer and Trade Development at Southern Wines and Spirits said New Zealand brewers made beers as good as anywhere in the world. “The floral notes and characteristics of hops make the beers stand out, and their passion is second to none. The
McCAIN Foods Australia/New Zealand will spend up to $10 million dollars over the next two years upgrading onsite storage facilities and building a new packing line at its Smithton plant in Northern Tasmania. McCain Foods will spend an estimated $7.9 million on improving on-site storage over two years and $1.6 million on the new packing line. The improved storage facility will hold up to 55,000 tonnes of potato for processing. McCain Foods Australia/New Zealand Agriculture Director John Jackson said the aim of investment was to increase efficiencies and make the plant more sustainable. “While this added investment will increase the plant’s capability and efficiencies, we still have a number of challenges before us in maintaining the competitiveness of the plant to ensure its long term survival,” he said. n
INNOVATIVE SALES & MARKETING
INNOVATIVE Sales & Marketing (ISM) is a boutique sales agency based in Auckland and servicing and operating in grocery and specialty channels nationwide. Company founder, Grant Pemberton says over the last year the company has seen exponential growth and Pemberton has increased his staff from three to 24 over the last 12 months. “Our philosophy is helping people and making relationships work”, says Pemberton. With strong relationships at store level, Pemberton says ISM is in the people game, introducing new products to store for the benefit of both the supplier and the consumer. ISM offers brand management, key account management, FMCG sales, demonstration services, merchandising marketing and business planning. Pemberton is well known within the industry, having made his way through Progressive’s management scheme, before roles at Goodman Fielder and Healtheries. n
ASUREQUALITY AND UBIQUITOME PARTNERSHIP ASUREQUALITY and Ubiquitome have agreed to collaborate on trialling mobile molecular testing for applications in food and primary production sectors. The collaboration will leverage Ubiquitome’s hand-held, battery powered real-time PCR device, the Freedom4. AsureQuality provides quality assurance from the farm right through to the supermarket shelf for producers, processors and Competent Authorities around the world. This includes involvement in animal disease control and pest management and surveillance programmes. “At AsureQuality we operate across a broad range of market sectors and we see a number of opportunities where the ability to deliver accurate, sensitive
challenge is to show the world how good they really are.” Festival Director Art Larrance said there had been a lot of interest in the New Zealand contingent, who will feature in daily meet-the-brewer sessions and be honoured guests in the opening parade through Portland. Over 85,000 beer lovers attend the festival each year. Five Oregon brewers attended the Beervana festival in Wellington last year
and timely diagnostic information can add value to our customers,” said John McKay, CEO of AsureQuality. “The Freedom4 has seen a wide variety of applications including food safety testing and pathogen identification. We are delighted to enter into a collaboration with AsureQuality based around the mobile molecular testing capabilities of the Freedom4,” added Paul Pickering, CEO of,Ubiquitome Limited. “Timely and accurate diagnostic information is becoming increasingly important in our globalised economy. Our partnership opens up multiple avenues to unlock customer value and realise the potential of ubiquitous genomic information.” n
as part of a long-term cultural exchange established by Mr Larrance and David Cryer, then director of the Beervana Festival. n August 2015
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SYNERGY CONSUMER KNOWS NEW ZEALAND’S FMCG INDUSTRY INSIDE AND OUT. IT all started with Sara Clarke, Hamish Marr and Kevin O’Shannessey taking the biggest plunge of their careers and kicking off Synergy Consumer in late 2013. Three months later, Johnny Bass jumped on board and Synergy Consumer’s FMCG sales, marketing, category management and supply chain recruitment partnership was complete. Each partner brings their own expertise to the company, individually and collaboratively, there is a wealth of knowledge, enthusiasm and passion within the team. Creating a different and more relaxed office experience was a priority from the beginning and the company continues to encourage existing and potential clients to pop in for a coffee and a chat. “It’s a small industry and we get to know our clients extremely well,” said Marr “In some cases we have placed them three or four times in their career,” he adds. The company has the flexibility to tailor costs to suit client’s budgets and in turn it has a mix of clients ranging from large multi-national corporates to small privately owned emerging companies. “Each company is different and we work closely with them to achieve the outcome they are aiming for. “We exist to serve the industry and we’re go-to problem solvers for anyone who wants to discuss contracts, salaries or career progression,” said Bass. If you’re hiring now or planning for the future, Synergy Consumer knows who’s who in the local talent pool, where they’re at with their careers, what motivates
PAVLOVA JELLY TIP
TWO favourite Kiwi desserts have combined to win Tip Top’s Jelly Tip Lab competition, celebrating Jelly Tip July, part of a month long celebration of the iconic ice cream. The ‘Pavlova Jelly Tip’, made of kiwifruit flavoured jelly, passionfruit flavoured ice cream and dipped in white chocolate, won the competition with a hand-made batch of just 500-sticks produced last month. The company said the winning Jelly Tip Lab idea, the ‘Pavlova Jelly Tip’ stayed true to the original Jelly Tip texture of hard shell, ice cream and all-important jelly. But it was the innovation and combination of flavours that saw win. While this new take on the Jelly Tip won’t be available to the general public in the immediate future, Minna Reinikkala, Tip Top Group marketing manager said “If Kiwis are desperate to try it for themselves, then we could definitely work on making a wider release, but it would take a few months in development to provide the higher volume needed.” n
FOG DOG’S NEW AGENCY PARAGON Multiplex has been appointed as the sales and merchandising agency for the FogDog range of products. The range includes Easy Beer Batter, Perfect Fritter Mix, Panko Breadcrumbs, Tempura Batter and Premium Gluten Free Breadcrumbs, reports Andrew Fogden of Fogdog Brands. n
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them, and how they really perform. They know the quiet achievers and the emerging leaders. If you’re looking for your next career move, Synergy work with the best companies in the FMCG supplier community and can give you a real steer on how to achieve your true market potential. “We take people’s careers very seriously and we are a big part in changing people’s career, we take tremendous pride in that,” said Bass. n
SMARTFOODS EXPANDS
KIWI cereal maker Smartfoods is about to shift into a new factory that will treble production capacity as part of a five-year plan to boost revenue to $50 million from $15.7 million by jumping on a trend towards healthier eating. Smartfoods, which has around 50 staff, has grown at a compounded annual growth rate of 36.5 percent since its first full year of trading in 2005/06 and exports account for more than a third of revenue. The Auckland-based company’s current St Johns factory is nearing capacity and Smartfoods is shifting to a 5,600 square metre Mt Wellington site, costing $2.5 million to fit out, which should accommodate growth for at least the next five years. The company has the licence to manufacture Vogel’s-branded cereals in New Zealand and China, makes a Hillary-branded cereal range where royalties go to the Ed Hillary Charitable Trust, and will launch its own branded cereals in the next two months. n
LEWIS ROAD SOUTH ISLAND LAUNCH LEWIS Road Creamery’s popular chocolate milk will be available in South Island stores from September 2, together with two new flavours developed with two other great Kiwi brands. A blend of Lewis Road’s Premium Whole Milk and Whittaker’s 5 Roll Refined Creamy Milk Chocolate – Lewis Road Creamery Fresh Chocolate Milk has been available in the North Island only since October last year due to the location and capacity of its Waikato plant. “We want to thank Mainlanders for their patience as we’ve been expanding our production capacity and working through the logistics of distributing our Chocolate Milk throughout the length and breadth of the country,” says Lewis Road Creamery founder Peter Cullinane. “We receive daily requests from dozens of eager South Islanders wanting to know when our Chocolate Milk will be coming so we are pleased to be able to confirm a South Island launch date,” he adds. n
AD TO COME
August 2015
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20 minutes with DB Managing Director– ANDY ROUTLEY Andy Routley became managing director of DB Breweries in March 2013. Two and a half years on, Routley says he and his family couldn’t be happier with their decision to move to New Zealand.
ROUTLEY has spent the last 26 years working in FMCG companies around the world. Born in London and raised in Brighton; he completed a degree in Mathematics at Loughborough University before studying to become a teacher. Upon completing his education certificate Routley says he realised that his teaching ambition was not the right career path for his 22 year-old self at that time. “I wanted to make a difference, but quickly found that perhaps I wasn’t the right type of character to become a teacher,” he says. He instead entered a graduate training programme with Mars. With no business background, Routley says the company had seen potential in him and the internship turned into a fulltime role, seeing him travel to the Middle East to launch Mars ice cream. Routley later joined Unilever and spent 14 years working for the company in France, Central Eastern Europe, Australia and the United Kingdom. “The great thing about these kinds of companies is that they provide a rich training ground and you are exposed to a large variety of cultures and amazing people.” Routley replaced Brian Blake, a Kiwi who’d been at the helm of the brewery for the best part of two decades. “It was great coming into an organisation that wasn’t broken and had lots of opportunities to turn this very good Kiwi company into something great!” he says. “We invest heavily in both our staff, their development and into innovation in all that we do. The difference between DB and other companies claiming that they also do this is that we truly do walk the talk.” The Briton’s role, previous to DB, was as the European Managing Director of
US-based consumer goods firm Church & Dwight. Routley says he was initially approached for his role at DB through LinkedIn and says he’s happy to be back working with beer after a previous global marketing role with SAB Miller. Outside of business, Routley has three young sons, with his wife Becky, twins Josh and Ben and younger brother Sam. The family now live in Mission Bay and Routley says it doesn’t get much better than opening your curtains to the Hauraki Gulf every morning. Auckland’s a long way from home but Routley and his family are enjoying every minute of it. “When you move somewhere new and you don’t have an extended family support network, you really focus on your immediate family and making great memories together.” The family often get away to their favourite spot in Hahei, and when it isn’t all business, Routley enjoys keeping fit with cycling and the gym and supporting his kids in their chosen sports. An avid rugby fan, Routley will be attending this year’s Rugby World Cup in his homeland through Heineken, a major sponsor of the tournament. “Obviously I’d like England to win, however if they don’t, I’d want the All Blacks to win it for sure.” Entrepreneurial in nature, Routley says the highlight of his career thus far has been, and continues to be, his current role at DB. With his constant determination and ambitious innovative ideas to raise the bar, the DB head has big plans for the company with new launches and industry firsts in the pipeline. n
ACORN GROUP ESTABLISHED by Tim Oakes and James Norris in 2007, Acorn Group began trading with a small portfolio of confectionery brands. Eight years later the company is well established, having invested heavily in staff and growth over the last 18 months, and now represent a range of national and international food and confectionery brands. The core team have worked together for over 10 years having met in previous organisations. Company directors Oakes and
Norris have a combined 35 years experience in New Zealand’s FMCG sector and an expansive network of contacts and strong consumer insights. Acorn Group’s recent investment in growth has allowed for added resources, most notably in the direct employment of brand management, new business management, key account management, sales representatives and merchandisers. The investment has been made to facilitate the expansion of the company, ultimately enabling the representation of more brands and expansion of its portfolio. The company has had great success in the launch and distribution of the international Maretti brand into the New Zealand market last year, and says it is about to launch another two flavour variants in the coming month. The privately owned New Zealand company prides itself on delivering an entrepreneurial
The investment has been made to facilitate the expansion of the company, ultimately enabling the representation of more brands and expansion of its portfolio. 6
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Leading the Snacking Category with New Consumer Benefits! Meeting parents demand for an allergen free and vegetarian friendly snack. For more information contact your local Acorn Group representative.
August 2015
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COUNTING UP: Trans-Tasman private label pricing shows major variances, says Consumer. In the latest issue of CONSUMER magazine, writer JESSICA WILSON looked at price comparisons between New Zealand and Australian supermarkets with an emphasis on Woolworths/Countdown. IAN Jarratt estimates it can cost him 30 percent more to shop at Countdown than to buy the same storebrand goods in Australia. Ian is a long-time Queensland consumer advocate and sometime visitor to our shores. Like many trans-Tasman tourists, he’s got a beef with our supermarket prices. After a recent trip here, Ian compared the prices on his Countdown receipts with the cost of the same goods at Woolworths in his hometown. “As I suspected when I was shopping in New Zealand, the price of most items was higher than in Oz. Only two items were cheaper and some were Homebrand and Woolworths Select products. Both are the supermarket’s private label brands, sold here and in Australia. But even with identical products, the prices we pay can be significantly higher,” he said. Our comparison of 20 Homebrand and Woolworths Select products found Kiwi consumers paid 30 percent more for the same bag of groceries. Half the items on our list cost at least a third more in local stores. For some products, the price difference was a lot more. A pack of 20 Homebrand paracetamol tablets at Countdown cost $2.19. Across the Tasman,
Woolworths’ customers pay just 72 cents for the same product. It’s a difference of 204 percent. Homebrand Rolled Oats costs 96 percent more here than in Australia. The price of a Woolworths Select cereal was 57 percent higher and a packet of Homebrand pasta was 48 percent more, well above the 15 percent difference that could be explained by GST. Only one product, Homebrand Brown Sugar, was cheaper this side of the ditch.
Priced to match?
Countdown’s response to the differences we observed? “Prices fluctuate a lot in the New Zealand market, sometimes daily, in response to competition,” it said. The store added many factors had to be considered when comparing prices between countries including exchange rates and transport costs. With the exchange rate high ad transport benefitting from lower fuel prices, these elements seem unlikely to explain the large differences in price we found. Among the other factors that may be influencing the price we pay is the concentrated nature of our supermarket trade, dominated by Countdown and Foodstuffs. While Countdown’s prices can differ significantly from its Australian parent, the products in our basket were often a close match with Foodstuffs’ private label brands. Homebrand Rolled Oats ($2) almost matched in price Pams Rolled Oats ($1.99) at Pak’nSave. There was a similar pattern for other products. At 11 cents a tablet, Countdown’s Homebrand paracetamol tablets were much closer in price to Pams
tablets (13 cents each) than to the same product in Australia. Depending on your view, this type of price convergence is the market working as it should. Or it shows a lack of genuine competition. In extremely competitive markets, says competition lawyer Alan Lear, you’d expect to see similar prices for the same products as rivalry has competed away excess profits and firms’ costs are as low as possible, with only the most efficient remaining in the game. But in concentrated markets, something else might also be going on: there’s a risk companies will simply price match. It’s a scenario the Commerce Commission contemplated in 2001 when it declined clearance for the merger of Woolworths and supermarkets then in the Progressive Enterprises stable (Foodtown, Countdown and 3 guys). The Commission considered the merger could result in a substantial lessening of competition and facilitate “leader-follower” pricing behaviour - a situation where stores focus on price relativity rather than pricing based on the basis of costs. The Commission observed supermarkets already closely monitored each other’s prices using “systematic, thorough and quite sophisticated procedures”. Reducing the number of competitors would only exacerbate the potential for “tacit collusion” between the dominant players, it said. The merger ultimately went ahead after the Privy Council held it had to be decided under provisions in the Commerce Act that existed at the time the application was lodged. The merger application was submitted in the same week amendments that effectively broadened the Commission’s power to decline requests took effect.
Love a pallet, love a Loscam. Stefan Crooks, Managing Director The Natural Food Company
www.loscam.com shaun.sievwright@loscam.com
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Market rules
International comparison routinely finds prices for many consumer products are higher here than in other OECD countries. In a 2014 report for the Productivity Commission, Professor Normal Gemmell, chair in the public finance at Victoria University, found New Zealand had the ninth highest prices for tradable commodities out of the 44 OECD countries. The tyranny of difference – the cost of getting goods to our isolated economy – is usually fingered as a key factor influencing local prices. But in the grocery trade, to the extent in which market concentration also plays a part in determining price remains up for debate. Under the provisions of the Commerce Act in place today, it’s unlikely the merger that ultimately led to the Countdown-Foodstuffs duopoly would have been permitted. But as Mr Lear observes, once a duopoly structure is in place it’s very hard to unwind. Competition law doesn’t regulate duopoly pricing per se, other than in cases of explicit collusion. “Adding competition back in is by far the best for consumers over the long term,” he says. Professor Gemmell believes the grocery market may be case where price monitoring is required. In principle, two very large supermarkets could compete fiercely, he says. But in practice, it can be “very hard to tell” if that’s happening. Active market monitoring by regulators would shed light on the matter, he says.
Third parties
Across the Tasman, indications that supermarket prices have room to move have emerged with the arrival of German-owned discounter Aldi. The store is credited with forcing Woolworths and Coles – the two dominant players – to drop prices for their private labels. The Australia Competition and Consumer Commission’s 2008 inquiry into the grocery market described Aldi as a “vigorous” price competitor, concluding the store had put pressure on Woolworths and Coles to offer many of their private label products
PRIVATE BUSINESS
PRIVATE labels used to be the no-frills option – lowpriced plain-packaged versions of basic foods. But that’s changed as supermarkets look to improve their margins. Private labels have shrugged off their budget look and can now be found beside mainstream brands. Countdown’s private labels extend from its basic Homebrand to its Macro Wholefoods range. Most Foodstuffs private-label offerings are marketed as Pams, the rest under the Budget label. n
“at prices not seen before Aldi’s arrival”. Launched in Australia in 2001, Aldi now holds an estimated 8 to 10 percent of the market – its sales were reportedly worth $5 billion last year. Coles and Woolworths still have the lion’s share of the grocery trade but commentators believe Aldi’s rise means the “two-horse race” is over. Back here, there’s no sign of a third party upsetting the position of Countdown or Foodstuffs. Aldi registered a company here in 2001but it exists in name only and has been filing non-activity returns with the Companies Office. The store says it has no immediate plans to enter the New Zealand market. That leaves Countdown and Foodstuffs sitting pretty. Countdown’s sales last year reached $5.7 billion, an increase of 1.6 percent on 2013. The store’s gross margin also increased during the year. Foodstuffs revenue sat at $8 billion.
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We say
Our supermarket trade is one of the most concentrated in the world, with two big chains dominating the market. Concentration in any market brings with it a risk consumers will pay more than a competitive price. Given the high degree of concentration, the supermarket sector warrants greater scrutiny. Price monitoring would be a way to shed light on the market and gauge whether consumers are paying fair prices. n
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APC Innovate is New Zealand’s leading manufacturer of temporary & semi-permanent point of purchase displays, promotional printing, consumer and industrial packaging, with over 80% market share in the display market supplying all major New Zealand FMCG companies. APC has been creating intelligent packaging and display solutions for over 35 years and is 100% Kiwi owned. Its continued success is due to the company’s high level of innovation, service, quality and its continued investment in leading-edge technology. After over two years of research, undertaken by the chief executive Tim Houlden, and a $2.5 million investment, APC Innovate launched its new fully automated digital printer, Inca S50i, last October. The roboticized digital printer is the first of its kind globally and Houlden says not only does the
Screen Printing
machine allow for multiple print variants with almost no extra cost, it also reduces the cost of short run printing for smaller clients. The company has a highly experienced and skilled design team that will work to your budget and brief, offering a complete service of in-house design, print, manufacture, assembly, packing and distribution. APC Innovate has won over 20 gold medals in New Zealand’s prestigious Pride in Print Awards, for industry leading innovation, printing quality and campaign management. n
www.apcinnovate.co.nz 09 273 1070 sales@apcinnovate.co.nz
August 2015
I 9
NEW WORLD & NETBALL LEFT: Katrina Grant outside New World Stonefields teaching fans some techniques BELOW LEFT: Phoenix Karaka at the checkout of New World RIGHT: Katrina Grant and Laura Langman with Silver Fern fans.
IN the lead up to the Netball World Series, the Silver Ferns made a special visit to New World Stonefields where they helped to pack shelves and groceries as well as gave shooting tips to customers trying to win prizes. Foodstuffs New Zealand General Manager Marketing Steve Bayliss said as a 100 percent locally owned New Zealand supermarket, it makes sense to support a sport as ingrained into Kiwis DNA as netball.
“We are looking forward to seeing New World’s netball sponsorship really make a difference to both those playing the sport at an elite level and young players who dream of one day being a Silver Fern.” “At New World we are passionate about supporting all things Kiwi and we’re right behind the Silver Ferns as they go on to achieve sporting success throughout 2015. We know they will do us proud at the World Cup and we want to encourage New Zealand to get on board and support the girls so they can go all the way,” said Bayliss. New World has had a great relationship with Netball New Zealand over the last 8 years and says it’s excited to be on board supporting the team, and netballers all around New Zealand. n
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BEER IN THE FIZZY AISLE?
EVER since the Sale and Supply of Liquor Act 2012 came into effect there have been issues with interpretation – everything from the many requirements of local alcohol plans administered by councils, to exactly where in supermarkets certain sorts of products should be placed. In recent months, some supermarkets have also come under fire for not acting sooner to move their alcohol displays from their entrances. That seems to have been sorted now, but another issue has been causing ongoing uncertainty and friction for suppliers and supermarkets alike: the shelf placement of no-alcohol and low-alcohol beer. You’d think this would be an easy issue and that beer should be placed with other beer. Right now, the law says that because these products are not “alcohol”, as defined by the Act, they must be displayed away from other alcohol and in a different section in the store e.g. with other beverages such as soft drinks, fruit juices and water. Beer in the fizzy aisle? I’ll be polite and say it’s not a good fit on any level. The no-alcohol and low-alcohol beer brands look exactly like regular-strength beer brands. Apart from a few words, their packaging is the same, with the same corporate colours, branding, and logos. So alike are they that a friend of a colleague of mine recently arrived home to host a dinner party only to find that the 12-pack he had picked up in his haste at the local store was low-alcohol beer – apparently the last thing his guests wanted! No-alcohol and low-alcohol beer is simply beer with the alcohol removed, and that’s why it has traditionally (and logically) been placed in the beer section in supermarkets. In its packaging, branding, and taste it’s beer. Consumers see it as a “beer” product and not an alternative to soft drinks or other beverages. Many drinkers of no-alcohol beer are also drinkers of full-strength beer. They choose to consume no-alcohol beer from time to time for a variety of reasons, such as health, sport, or having to drive. Consumers who purchase it want a beer taste without the alcohol and associated effects that come from drinking a full alcohol beverage, and being able to pick it up in one section of the supermarket makes perfect sense. Everyone I’ve spoken to – beer producers, supermarkets, and consumers
– sees no-alcohol or low-alcohol beer products as a “beer”. They are definitely not soft drinks. That’s why no one thinks that putting them alongside Coke and Pepsi is a bright idea. Unless the law is corrected quickly then the unintended consequences of this murky law is twofold: If no-alcohol and low-alcohol beer is in the soft drink aisle then it will annoy and inconvenience shoppers, who don’t expect to see beer among juices and soft drinks, and it will send a message that beer is no different to soft drinks. Surely that is contrary to the intent of the law and a PR ‘fail’ waiting to happen. Then there’s the real risk that because supermarkets don’t want to risk a public backlash from placing these products alongside soft drinks and other products they will solve the problem by simply deleting the products altogether. Some have already indicated they may do this. Such a move would remove choice for beer drinkers who want to have a zero or low-alcohol option – surely the opposite to what the legislators intended with their law changes. The stated intention of the law, among other harm-minimisation objectives, was to reduce so-called harm from supermarket sales of alcohol. FGC has told the Minister of Justice that retailers being forced display no-alcohol and lowalcohol beer in the fizzy aisle goes against what the legislation is trying to achieve. If these beer products are completely deleted from supermarkets then the effect of the new laws will be the complete opposite of what Parliament intended in amending the Act, and that would be most disappointing for everyone, particularly FGC members marketing these products. FGC strongly endorses the Government’s message of responsible alcohol consumption. Last November we wrote to the Ministry of Justice and the Minister alerting them to the unintended consequences of the law. The legal uncertainty continues and we’ve written again recently to say the industry’s patience is wearing thin. Unless this issue is fixed then the status quo is lose/lose. n
Katherine Rich CEO, New Zealand Food & Grocery Council
ANUGA TREND ZONE THE Anuga Trend Zone 2015’s display will feature in-depth analysis on the issues driving the food and beverage landscape, including the clean label and free from trends. The ‘Clean to Clear label’ was identified as the top trend for 2015, reflecting a move to clearer and simpler claims and packaging for maximum transparency. Meeting the needs of the millennial consumer has also become a key focus, as has targeting the demands of the gourmet consumer at home, with ‘Convenience for Foodies’. In order to compete with the healthy appeal of fresh aisles and the convenience of canned foods, established frozen foods are focusing on freshness in their marketing, stressing the superior nutritional content in frozen food. At the same time, the frozen segment is witnessing new product launch activity in new categories. The show will include a series of essential presentations on the consumer trends taking product development forward, with insights on packaging,
technology and flavour drivers. The presentations will be illustrated with more than 200 innovative products from around the globe. Innova Market Insights will feature daily live presentations at the show, with the Innova Market Insights team of expert staff on hand to guide visitors through the display and offer their insights. Both Foodstuffs and Progressive representatives will once again be attending this year’s show. Foodstuffs Own Brand personnel have been attending the show for some years reporting that “it is a great place to visit both our international supplier base as well as a place to source new ideas for the company’s private label range. Progressive acting general manager of merchandise, Antoine Dupont, is attending again this year as the company looks to Europe for upcoming trends and innovative products. “Anuga does showcase innovation exceptionally well and I look forward to seeing what other international retailers are buying –and why,” he said. n
Spotlight at ANUGA on bread, bakery & hot beverages THE international offering of breads and baked goods spans just as far as the selection of hot beverages, with Anuga 2015 set to unite over 400 exhibitors from the bread, bakery, sandwich spreads and hot drinks sectors in one massive trade show measuring 20,500m2. Companies such as Darboven, Ditsch, Dilmah, Gimoka, Gujarat, Instanta, Lavazza, and the Tea Board of India will be among the exhibitors at the show. Buyers from the trade and food service sector will find numerous ideas for their own business here as around 6,800 exhibitors from approximately 100 countries are expected to participate at Anuga in Cologne this year from 10 to 14 October. Unique business opportunities often arise at Anuga Bread & Bakery, Hot Beverages due to strong synergies between these unique business areas. This year the Italian traditional roasting company, Caffé New York, is offering the food service and trade sectors an amazing variety of blends from Java, Cuba, Brazil, Costa Rica, Ethiopia, Columbia, Cameroon, India, Guatemala or Nicaragua. While industry giants such as Lavazza will be using the international stage, that the Anuga Bread & Bakery, Hot Beverages offers, to showcase its products. Tea in all its varieties - from classic black and green tea, to fruit, herb and aromatised teas, is also an important theme at Anuga Bread & Bakery, Hot Beverages. n
globalsnapshot TOP 5 GLOBAL LAUNCHES THIS MONTH
Denmark: Protein drink USA: Tri-layer yoghurt Tapping into the demand for high protein products, Arla has released a milk drink with blueberry flavour designed to help maintain and increase muscle mass. Recommended by Team Danmark, it has 22g of protein per 400ml bottle (DKK9.95/£0.86).
For those looking for more of a wholesome yoghurt, the Oh My Yog! Gingered Pear Trilayer yoghurt ($1.49) is made from a family recipe with layers of whole milk cream, yoghurt and fruit. It’s USDA organic certified and gluten free as well.
China: Reconstituted milk drink Ki You Mi has launched a reconstituted milk drink for kids. The brightlycoloured 245ml can (CNY5.50) features a cute cape-wearing cartoon. Reconstituted milk is a blend of milk solids and water.
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Spain: Roquefort cheese slices
USA: Balanced Breaks
Consumers can now enjoy the powerful yet delicate flavour of Roquefort without the hassle, according to Société, which has created Roquefort processed cheese slices. They’re available in a 150g pack (€1.75) containing eight slices, perfect for creating an authentic Croque Monsieur.
Snacking just got more interesting thanks to the launch of Sargento’s Balanced Breaks, which is a medley of natural sharp white Cheddar cheese, sea salted cashews and golden raisins. It comes in a 4.5oz pack ($3.99), containing 3 x 1.5oz snacks.
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www.supermarketnews.co.nz OWNED
www.anuga.com
TASTE THE FUTURE
10 TRADE SHOWS IN ONE
Buy admission tickets online now and save up to 44%: www.anuga.com/tickets
Your ticket to the food & beverage world An impressive array of food and drink: International industry innovations and trends. Anuga impresses as the most important and largest food trade fair once again in 2015 with a diverse line-up of international exhibitors. The ten Anuga trade fairs bring the interests of the exhibitors and the visitors together in a focused manner. Look forward to top-class evening events, an inspiring supporting programme and trends that move the industry.
Cologne, 10.–14.10.2015
For further information and assistance with travel and accommodation planning Robert Laing Messe Reps. & Travel 09 3031000 robert@messereps.co.nz
August 2015
I 13
STRATEGY AUDIT: The 9 imperatives for
small businesses when building a brand.
Guest columnist Allen Roberts, Director of Strategy Audit
REACHING consumers via supermarket retailers remains a tough game, one in which the supermarkets set all the rules, own the referee, and choose who can play with them. In other words, they are holding all the cards, so to remain in the game; you have to be smart, focused and innovative.
difference if you are B2B or B2C, the same rules apply. The closer you come to being able to define your ideal customer as a person you know, the better. A real part of this exercise is to be able to think like a customer. Some large companies now employ anthropologists to spend time in the homes of their target customers to see how they operate in the context that they are seeing as an opportunity to offer a branded product to deliver value of some sort
A part of your starting point is a clear understanding of what drives success in your business, what drives costs and revenues, how the business model works, and reacts to stress.
HAVE A CLEAR VIEW OF YOUR BRAND AS A PERSON. Similarly, defining your brand with human traits is of vital importance. People relate to people not brands, therefore to build empathy, a consumer has to be able to impute behavioural characteristics, beliefs, and personality to your brand.
Building a brand is not something that happens overnight, rather it happens over an extended time, and requires vision, patience, and investment. However, the fantastic opportunities for small businesses to play with the big league, opened up by digital technology, have bent the rules a little.
KNOW YOUR STARTING POINT. As with any journey, knowing where you are now, where you want to be, and having some idea of the road in between those points is vital to success. Therefore the logical starting point is a review of your current competitive and strategic environment, along with a critical review of your own capabilities, distinctive or otherwise, and the points that differentiates you from your competitors. A part of your starting point is a clear understanding of what drives success in your business, what drives costs and revenues, how the business model works, and reacts to stress. Being self aware is as important in business as it is in personal relationships.
BUILD A BRAND DIFFERENTIATED FROM COMPETITORS IN SOME WAYS OF VITAL IMPORTANCE TO CUSTOMERS. There is little point in being the same, or very similar to everyone else when dealing with supermarkets. Negotiations then just becomes an auction between suppliers for shelf space, and once you have succeeded there, you face a reverse auction for the consumers dollars. Neither are winning strategies. Small businesses by their nature do not have the scale to serve everyone, so having a clear offer to a small group, sufficiently powerful that they are not prepared to accept a substitute is the desired outcome. If you can sit in front of one of the gorillas, knowing you only want distribution in one, and knowing that at least some of your customers will be prepared to either change their store choice to get your product, or build a bit of lo yalty to their current store because it stocks your product, you have some leverage in the discussions. It is all about negotiation leverage, and differentiation that delivers value to consumers gives leverage.
HAVE A CLEAR PICTURE OF YOUR CUSTOMER IN MIND. “Customer profiling” is for small businesses one of the opportunities they have that can differentiate them from their bigger competitors, but it takes the will to be able to say “No”, to define who you want to attract, and build your brand offering and communications to appeal to those people specifically. It makes little
AIM FOR THE LONG TERM. ‘Lifetime customer value” has become a bit of a cliché in recent times, but that does not mean it is of less value as an idea. Building in the triggers that will bring our existing customers back time and time again is a far better way of building a brand and a business than to be constantly out fishing for new customers. The digital tools now
So, following are the key considerations in your brand building challenge:
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available have given us a wide array of tools that assist in the calculation of the cost of acquisition and retention of customers. Marketing expenditure can be now absolutely accountable for results, and sensitive to even very small changes in tactics, and this is a potent tool small business can use against their bigger rivals, and to build brand loyalty. Knowing what sorts of marketing activity engages existing customers is of way more value than going fishing for new ones.
young graduate, that created the “you ought to be congratulated” advertising that gave Meadow Lea margarine a stranglehold on the Australian market for 30 years. In a market with many heavily advertised brands, Meadow Lea held a share of more than three times its closest rival for many years. The line, and the ads themselves spoke in the language of the primary customer, busy, smart women with families who were juggling multiple roles and responsibilities.
CONSISTENCY AND PREDICTABILITY. These two words are factors that always come up in consumer research seeking to identify the foundations of good brands. Consumers know what they stand for, know they will have those things delivered with no surprises. However, the notion of consistency goes further, to the way the brand is packaged, advertised, an positioned, they are all consistent over along period of time, change coming as evolutionary rather than revolutionary. Consumers also want to be entertained, intrigued, and engaged with their brands, and that will not happen if they are boring, so the communications have to walk that fine line of being consistent, while being constantly fresh and interesting. Few succeed, but those that do become significant players in their niche, weather that niche be a global market, like Apple, or a local market.
PLAN AND INTEGRATE YOUR MARKETING ACTIVITY ACROSS PLATFORMS. In the “old days” the scope of available marketing activity was limited to the paid media, paid public relations, sales promotions and a few others. Now, that has changed, and the menu of available marketing tools has exploded. This huge array of options also makes life for the marketers complicated and dangerous, so great care must be taken to be consistent in your message and positioning across the whole array of marketing tools that are employed, and you need to be employing a range of them, rather than a few, depending on the behavior of your customers. These days, social media platforms play a huge role in the development of an opportunity to sell, but in fact they do not yet do much in the way of brand-building. The core of much brand building activity is your website, to which you drive potential customers so they can check you out, and existing customers to reinforce the value of your brand in more “long form” ways like recipes, hints, detailed information, whatever is relevant to the consumers relationship with the product category and your brand. However, the most common problem with websites is that people “set and forget”. They need to be living creatures, fed and nurtured like the family pet if they are to deliver a return.
DIFFERENTIATION. Whatever else you develop your brand to be, and to do, make it different to everything else out there that could fill the same customer need. Without your own distinctive identity, you will be simply one of the forgotten brands that fight for shelf space on the basis of price, and then all you do is deliver profits to the supermarkets. However, differentiation does not mean a different pack size, or colour scheme, it means genuinely solving the consumers problem or addressing the “job to be done” in a different way, one that adds value by reflecting the job. You must however be very focused about what value you add to who, and why they should buy your brand over the other guy. The final implication here is that you know your competitor well, well enough to counter their obvious and logical competitive responses in the manner in which you build your brand. COMMUNICATIONS MUST BE IN THE CUSTOMER LANGUAGE. Brands that communicate in the language customer’s use in the context in which the product is used have a chance of success, as the customers relate to the context and language. Many years ago I was a part of the team, an observer really as I was just a
TWO FINAL THOUGHTS. - Even if you do all the above right, better than anyone else, but your product sucks, you will have wasted all that effort, time and money. The consumer is not a fool, they will not mistake good marketing for a good product, at least, not more than once. - If you want your brand to last, to stand the test of time and competition, build it on solid foundations, but make it flexible enough to adjust to consumers as they evolve. n
Allen Roberts Director of Strategy Audit www.strategyaudit.com.au
HIDDEN COSTS IN NEW TECHNOLOGY NEW Zealand shoppers were amongst the most enthusiastic of early adopters to Eftpos technology. The thought of a supermarket or a dairy, in New Zealand, not accepting electronic card purchases at the time was virtually unthinkable, even while similar retailers in the United Kingdom and United States were hesitant about the new electronic payment system. Other jurisdictions have now effectively caught up with us and customers around the world are increasingly unlikely to be carrying cash while shopping. Cheques are rapidly becoming an out-of-date payment option. The next generation system is contactless payment transactions which involve a customer simply waving their card near a scanner. While that may sound like Eftpos without the swiping, the actual business model is far closer to credit cards because the retailer is charged a percentage fee for each transaction. In some cases, this charge is passed onto the customer. However, for most retail grocery stores the charge has to be absorbed. Somewhat oddly, a customer will be charged an extra fee for using a credit card to pay for a hotel room but a supermarket will be expected to absorb
the same charges for use of the same card. Accepting contactless, “tap and go” or “Paywave” payments attracts additional costs which stores may not have budgeted for.
represent a very small percentage of any purchase the costs very quickly add up. The Age notes that Australian “businesses pay fees to banks for accepting credit cards and debit cards from consumers that the banks issue. The fees amount to around $2 billion (NZ$2.23 billion) a year or about a third of the $7 billion (NZ$7.82 billion) total card income for the banks.” That is big money in any language. The situation in New Zealand is delicate. It appears clear that the number of local traditional Eftpos cards, once a hallmark of our domestic market, is reducing. They are being replaced (and then some) by Visa and MasterCard contactless debit cards. Contactless payments are growing in numbers, which in turn can drive price increases. Previous settlement agreements negotiated by the Commerce Commission relating to credit card (and therefore contactless) interchange pricing have expired. Industry observers argue that this situation hits smaller retailers the most given they have comparatively little bargaining power or scale. Most, if not all, New Zealand contactless electronic payments are now run overseas using an offshore
In some cases, this charge is passed onto the customer. The Reserve Bank of Australia (RBA) is currently investigating the issue. The Melbourne Age newspaper reported that a number of industries, including banks, airlines, supermarkets and small business, were meeting at the Reserve Bank to try to “thrash out major changes to payments regulation recommended by the Murray inquiry.” Reports suggest the meeting “will be heated, pitching big business opposed to change against small business pushing for an overhaul, including lower fees and fewer fee categories so that they know what cards cost them.” While the contactless payment fees
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payments processing infrastructure. This reduces the control that New Zealand retailers may have regarding their pricing of an increasingly popular payment method. In other nations, there is a clear trend towards establishing a single governance entity in charge of card pricing. This is happening in Australia, the European Union, the United Kingdom, Canada, Japan and the United States. In contrast, New Zealand has no clear oversight entity. Some responsibility may lie with the Reserve Bank of New Zealand, Payments New Zealand Limited and/or the Commerce Commission but the lines of responsibility here are hopelessly tangled. As a result of the high cost and growing confusion, a number of stores have chosen to not accept contactless payments. They are well within their rights to do so but they also risk aggravating customers who are embracing the new technology. Nargon believes the sector needs more information and greater certainty around the costs of accepting contactless payments. n
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August 2015
I 15
storecheck THIS month Auckland’s Nosh and Farro stores were on our mystery shopper’s radar. With a high quality of scores across the board, particularly in fresh food, it was Grey Lynn Farro who took out this month’s top store.
FARRO MT WELLINGTON
For this month’s reviews I decided to try out the gourmet fresh food markets that are Farro and Nosh. As these differ slightly from general supermarkets, I have marked them equally on batteries, magazines and general merchandise where these categories were not applicable in store. My first stop was Farro Mt Wellington. There was plenty of parking outside the clean looking store. Large glass windows wrapped the front of the store which on entering made the inside bright. My first impression was relatively positive except for a few bits of rubbish visible on the floor. Heading through the fruit and vegetable section I noticed how beautifully they were displayed. Stacked nicely and well presented. What little they had left of the fresh seafood looked highly appealing, it seemed it didn’t last long in this store! One downfall was packet chips displayed on top of stacked boxes – it didn’t seem to fit in with the rest of the store’s wooden shelving and seemed a bit budget. I headed over to the checkouts where staff were not overly friendly but seemed to warm up towards the end of the transaction.
NOSH GREENLANE
My next stop was Nosh in Greenlane. I found a carpark easily and headed into the store. The building itself seemed a bit dated and rubbish was floating around, so my expectations weren’t high as I entered the store. On entry I noticed that the store itself was small although relatively bright. Vegetables were well presented and fresh. There was plenty to choose from in the meat department, an excellent range. The deli was presented beautifully and had a lot of cold cut meats to choose from. The store itself was clean and shelves were neatly stocked although a few low stocks in places. One let down in this store was the lack of fresh bread on offer. The bakery range was small and unappealing. What little they had on offer did not seem to be the freshest. I headed to the only checkout that was open. Service was slow and eventually another check out opened only to serve the end of the queue first.
NOSH MT EDEN
I then headed over to Nosh Mt Eden. Again, parking was easy to find out the back of the store. The building by the carpark seemed a bit scruffy and the carpark itself wasn’t very tidy. As I entered the store I was pleasantly surprised, the store was much larger than it seemed from the road. A florist counter was a stand out with beautiful flowers on display. Again, produce was displayed beautifully, with plenty on offer. There was a decent range of meat, but the fridges needed a clean. The seafood was running low but had some delicious looking fish cakes on offer. The fish counter itself was unattended but as soon as a deli staff member saw me approach they rushed over to help. The cheeses on offer were amazing, a large range displayed appealingly. The store was quiet so no queues at the checkouts. I decided to grab a coffee from the café in store and resisted the fresh pastries. Excellent service and fantastic coffee here.
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STORE EXTERIOR
Farro Nosh Nosh Farro Mt Wellington Greenlane Mt Eden Grey Lynn
• Was the outside of the building and grounds clean, tidy free of rubbish and with adequate trolley bays? (5 pts.)
5
5
4
5
• Were the windows and exterior clean and tidy? (5 pts.)
5
5
5
5
• Was the signage well presented and up to date? (5 pts.)
5
4
5
5
• Were there enough car parks? (5 pts.)
5
5
5
5
STORE INTERIOR
Farro Nosh Nosh Farro Mt Wellington Greenlane Mt Eden Grey Lynn
• Were your first impressions positive? (5 pts.)
5
4
5
5
• Was the floor clean and free of broken/damaged stock? (5 pts.)
4
5
5
5
• Adequately lighting/heating? (5 pts.)
5
5
5
4
• Instore signage clear adequate? (5 pts.)
5
4
4
5
• Was there good visibility of promo/ seasonal products? (5 pts.)
5
5
5
5
• Was the floor free from unattended boxes/trolleys? (5 pts.)
5
5
5
5
• Were the fridges and freezers clean and tidy? (5 pts.)
5
5
3
4
STORE LAYOUT
Farro Nosh Nosh Farro Mt Wellington Greenlane Mt Eden Grey Lynn
• Were the aisles wide enough? (5 pts.)
5
5
5
5
• Were all shelf edge labels clearly visible? (5 pts.)
5
5
5
5
• Were all shelves clean, neat and tidy? (5 pts.)
3
5
5
4
• Was there an adequate number of trolleys/baskets available? (5 pts.)
5
5
4
5
PRODUCTS
Farro Nosh Nosh Farro Mt Wellington Greenlane Mt Eden Grey Lynn
• Was there a good range of products to choose from? (5 pts.)
5
4
5
5
• Was there full availability of products? (5 pts.)
5
3
4
5
• Was all product packaging in good condition? (5 pts.)
5
5
5
5
• Was there a good range of magazines and cards etc and were they tidy? (5 pts.)
5
5
5
5
• Were the batteries and general merchandise tidy? (5 pts.)
5
5
5
5
STAFF
Farro Nosh Nosh Farro Mt Wellington Greenlane Mt Eden Grey Lynn
• Were all staff fully dressed in uniforms and name badges? (5 pts.)
5
5 5 5
• Were there adequate checkouts, considering the time of day? (5 pts.)
5
2
5
5
• Were you greeted in a friendly manner? (5 pts.)
3
5
5
5
• Were you served in a speedy and efficient manner? (5 pts.)
5
4 5 5
• Were you thanked for your transaction? (5 pts.)
5
5 5 5
FARRO GREY LYNN
My last stop was Farro in Grey Lynn. The carpark was large with plenty of parking available. The gardens surrounding were beautifully manicured. As I headed towards the store a staff member was busy cleaning up litter in the grounds. So far my expectations were high for this store. The store certainly did meet my expectations as I headed inside. The range of meat was fantastic, there was plenty to choose from and covered a large portion of the store. Once again, the vegetables were well presented and fresh. The seafood was fresh looking and well stocked. The deli was exceptional, fresh sandwiches and salads available. The tidy presentation continued across the store, with all shelves neatly stocked. This store was really hard to fault, the only thing I could think of would be a little more light in the store. I headed to the checkouts where I was served straight away and in a friendly manner. Definitely the top store of the day, they seemed to pride themselves in presentation here. Nosh and Farro are certainly the places to go if you are after fresh produce and a wide range of meat.
FRESH FOOD
Farro Nosh Nosh Farro Mt Wellington Greenlane Mt Eden Grey Lynn
• Did the produce look fresh? PRODUCE (5 pts.)
5
5 5 5
FISH (5 pts.)
5
5 5 5
MEAT (5 pts.)
5
5
5
5
DELI (5 pts.)
5
5
5
5
BAKERY (5 pts.)
5
3
5
5
PRODUCE (5 pts.)
5
5 5 5
FISH (5 pts.)
3
3 3 5
MEAT (5 pts.)
5
5
5
5
DELI (5 pts.)
5
5
5
5
BAKERY (5 pts.)
5
3 5 5
• Was the Fish Counter staffed? (5 pts.) 5
5 5 5
• Was the Deli Counter staffed? (5 pts.) 5
5 5 5
• Was there anything or anyone who stood out? (5 pts.)
3
3 5 5
• Overall shopper experience (10 pts.) 8
7 8 9
• Was there a full range of produce?
HOW THEY SCORE?
Farro Nosh Nosh Farro Mt Wellington Greenlane Mt Eden Grey Lynn
Maximum available score: 200 pts 189 179
190
196 Top Score
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THE annual Auckland Food Show took place from the July 30 - August 2nd, with record crowd numbers. This year rave reviews were given to the events new Healthy Hub section, as well as acknowledgements for its increasing number of smaller artisanal suppliers.
Luncheon just got interesting again.
Introducing our new premium quality Ham & Chicken Luncheon Chubbs.
Available in convenient familyfriendly 220g & 700g sizes, Farmlands Ham & Chicken Luncheon Chubbs stay true to the Farmland values, where freshness, quality and fantastic flavour is guaranteed.
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www.farmlandfoods.nz Freephone 0800 806 328
breakfast J. FRIEND AND CO SQUEEZY HONEY J. FRIEND and Co is launching a new range of squeezy honey- the first raw un-heat treated honey on the market. The squeezy bottle has a unique seal off valve in the lid which stops the honey leaking. There are three varietals to the range, Beechwood Honeydew Honey, White Clover Honey and a Manuka, Beechwood and Kamahi honey blend. The J. Friend and Co brand is recognised as a market leader in quality New Zealand Honey, its honey is traceable, raw, unpasteurised and carbon neutral. The packaging design and branding reflects the quality of the product within. The company says its honey is targeted at the informed consumer who wants to know where the products are produced and how. The honey category in general is a growth market, as consumers are becoming more aware of bees and the integral part they play in the
future survival of our planet therefore they are becoming more educated about honey and are seeking out different types of honey whereas in the past they viewed honey as just ‘honey’ and did not realise there are many different types of honey available. J. Friend and Co were the first traceable honey company in New Zealand and the first company to list the name of the beekeeper, the harvest date, and the specific region that the honey was harvested from. The company is also the first carbon neutral honey in New Zealand and the first company to package a raw and creamed honey into a sqeezeable bottle. n
KELLOGG’S DRIVES BREAKFAST GROWTH KELLOGG’S is the second largest manufacturer in the New Zealand breakfast cereals category and is a significant contributor to driving category consumption through its above the line brand building, which helps to encourage shoppers to come down the breakfast aisle. Kellogg’s ranges market leading cereal brands and family favourites, such as Nutri-Grain, Special K, Sultana Bran, Just Right and Coco Pops. The company recently launched Special K Wholegrain Protein Clusters to tap into consumer needs for a more filling breakfast. These are a delicious granola style blend of three whole grains combined with fruits and available in
two flavours, Flame Raisins and Pink Lady Apple; and delicious Cranberries, Crunchy almonds and Pepitas. With the goodness of nuts and seeds and the benefits of protein, it has more of what you want, and less of what you don’t. In addition, over the coming months Kellog’s will be launching some exciting new products to drive excitement back into the category through re-engaging shoppers with new variants for some of its key brands. The breakfast category is currently in slight value growth of +1.0% YTD vs YA (AZTEC 19/7/15), with volume growth also in line with this. Household penetration of breakfast is high at 93.5% (Nielsen Homescan Data to June 2015), so it’s clear that most families have cereal in the pantry. There remains great opportunity to drive category growth through encouraging improved average weight of purchase and give consumers reasons to consume breakfast cereals more frequently, rather than substituting for other breakfast options. Innovation is also very important to drive news for the category and attract new shoppers, though
HUBBARDS MEETING CONSUMER DEMAND
MORE and more consumers are turning to muesli for their breakfast choice, so much so that it is now the largest breakfast cereal segment in New Zealand, worth $47.7M annually. The muesli market has doubled over the last 10 years and this trend is set to continue, growing 5.8% over the last year. “People are looking for foods that are healthy, natural, wholesome and tasty” said Rebecca Bergs, marketing manager at Hubbards. “Muesli delivers on all this
Hot or Cold Mueslis. These blends offer a quick, warm and delicious winter warming breakfast with all the variety and sustenance you expect from muesli.” The Outward Bound Mueslis launch builds on the trend where people increasingly are looking to add more protein to start the day; and it builds on the company’s Outward Bound Original Cereal that has been a staple in Kiwi adventurers’ backpacks for about twenty years. “The protein clusters in
through the variety it provides in the blend of grains, fruits, nuts, seeds and textures. It’s a full sensory experience.” Hubbards is a strong player in the New Zealand breakfast market and is the leading muesli brand with 32% value share, $15.4M in sale. It continues to drive growth of this segment and over the last 12 months it grew 6.6%. Hubbards is also one of New Zealand’s most trusted brands, as in the annual Reader’s Digest ‘Most Trusted Brands’ survey released in July 2015. In muesli, there is a strong selection to choose from across the Amazing, Simply and Originals & Outward Bound ranges. There are also gluten free options under the Hubbards Thank Goodness brand. Hubbards Amazing Muesli, is one of the fastest growing in the market (+14%) with $4.5M sales and 10% share. The range offers plenty of choice to consumers across toast types, fruit and non-fruit options. “People recognise the versatility of muesli and like to keep breakfast interesting by choosing different styles and flavours of mueslis”, said Rebecca, “The latest introduction for winter was a range of three Hubbards Amazing
the new Outward Bound range deliver a delicious protein boost that outdoor adventurers are looking for,” said Rebecca. These recent launches are part of the many opportunities within the muesli segment. People are looking for new blends that better meet their lifestyle and dietary choice, the introduction of trending ingredients, like ancient grains, and pack formats that meet a number of functional benefits. Innovation will be key to driving further growth and value in this segment. “As we celebrate Hubbards 25th anniversary (Hubbards hit Kiwi breakfast bowls in 1990) what better to innovate in muesli that to ask muesli lovers what would make their perfect muesli!” said Rebecca, “From all the recipes submitted at www. myperfectmuesli.co.nz, we will select one recipe which will be turned into the Hubbards birthday muesli for launch in October.” n
the strength of the mainstay brands of the category will always be the key to category growth. Protein is a key element that consumers are increasingly seeking in their breakfasts to help manage satiety, and also to help with muscle development for growing bodies. Consumers are increasingly looking for more wholesome ingredients in their
breakfast cereals that they can see- i.e. wholegrains, fruits, nuts, seeds. The Health Star Rating (HSR) has started to appear on breakfast cereals, and is an easy way to compare the nutritional profile of packaged foods so consumers can make informed choices when shopping. It can help them to choose healthier options by looking at the number of stars on a product. n
SOURCE: Aztec, NZ Grocery, MAT to 19 July 2015. Notes:The total NZ Breakfast Cereal Market (including drinkable breakfast & porridge) is worth $281.7M grew 1.2% over the last year. The total Ready-to-Eat Breakfast Cereal Market is worth $213.6M has not grown over the last year.
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breakfast SMARTFOODS BRINGS VALUE BACK INTO THE BREAKFAST SEGMENT There have been some big changes in shopper behaviour over the past two years, the desire for low sugar; less processed food and clean eating are becoming the biggest trend in breakfast and across total grocery. Smartfoods’ team members recently visited the USA and noted that these trends are in full swing in larger markets. Super premium products are also a major contributor to growth and shoppers are prepared to pay more for highly differentiated products. Smartfoods believe this will continue to grow along with the expansion of Health & Wellbeing. Based on these insights Smartfoods is expanding Vogel’s Cafe-Style across 9 new products across multiple breakfast segment, with.three Light Health cereals, two Bran, two Super Oats and two Toppers. Some of these segments have been in decline for many years and the new products are designed to meet the needs of specific shoppers and bring value back into the segments. What really gets the team at Smartfoods excited is new ideas to
SMARTFOODS is excited about expanding the Vogel’s footprint, to drive growth in new segments, in 2015. The muesli segment growth has made it a standout segment in the Breakfast category, and Vogel’s has been a key driver, delivering innovation that connects with what shoppers want right now, trading consumers up to a higher $/kg and increasing average prices. Smartfoods plan to take its insights into what has worked in muesli and across multiple breakfast segments.
Going the extra mile
Distribution
Sales Solutions
Supply Chain Intelligence
Warehousing
CONTACT: Innovative Sales & Marketing Ltd Grant Pemberton 021 890272
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PURE DELISH PREMIUM OFFERING KNOWN for innovative, unique and category challenging products that are all handmade on site, Pure delish has been making premium high-end breakfast cereals for nearly a decade. Over the last few years Pure Delish has added many new and exciting products to its range. The company’s Raspberry and Maple Nut Nograin-ola is a unique granola style cereal that is free of grains, wheat, gluten, dairy and egg. It is also low in sugars and suitable for diabetics, this cereal has fast become a top seller since its launch 2 years ago. The latest addition to its cereal range is a Choc Nut Nograin-ola, a taste sensation without the guilt! Pure delish created the category of premium breakfast cereal in New Zealand several years ago and today remain the top manufacturer of premium cereals in this category. In the last couple of years the company has noticed many changes in the perception of healthy breakfast food choices. Pure delish offers completely handmade healthy, clean and natural breakfast cereals that are packed full of
the supermarket shelves and shoppers kitchens, and they believe that the new Café-Style Toppers range is great new concept. These nut & seed mixes make it simple to increase your protein intake by sprinkling on the top of your cereal,
quality ingredients and taste amazing. Consumers understand the value in paying more and know this equals better quality, nutrition and taste. They also want to know where their food is coming from and like that fact things are handmade locally with care, the old fashioned way. The artisan food industry has thrived over the last few years with many people enjoying the benefits in terms of product quality, choice and the fact they are supporting local kiwi businesses. Pure Delish said it sees continued growth in the demand for its high end breakfast and snack options, as the consumer becomes more savvy around the what, where and how things are made. Everyone now reads nutritional labels from top to bottom and want to know what is in their food and is it good for them. Pure delish will continue to innovate and push the boundaries of the breakfast cereal category along with giving customers what they expect from the brand, which is great tasting, innovative, unique, handmade and healthy products. n
yoghurt, porridge, salads, desserts and more. They also tap into new trends with a raw and paleo option. Smartfoods is definitely setting the pace of innovation in the breakfast cereal category. n
COATS DESIGN PUTS THE HEART BACK INTO MORNING HARVEST
EGGS, are one of New Zealand’s top choices for affordable protein and an excellent nutritional choice for families. The move to Colony Laid in response to new government regulations and the Kiwi consumer’s desire for welfare-friendly, affordable eggs has seen the industry go through a major transformation. “This provided the perfect opportunity to conduct a major brand review for Morning Harvest. Feedback from consumer focus groups provided insight into how the brand was performing within the current market environment and we needed to adapt to the new industry regulations,” said Susan Bamfield, general manager, Independent Egg Producers Co-op. Matt Grantham, CD Coats Design added, “It revealed that Morning Harvest was suffering from the lack of a distinctive voice in the segment - the previous livery relied upon traditional farm related graphic elements and photography. It was a brand that had become generic, lost within the rest of the segment, saying the same things. A bold step forward would meet the new market challenges and re-establish the brand as a family favourite. Our discovery and design process highlighted the emotional and health benefits of
eggs, underpinned by IEP’s network of family run farms, as a unique positioning for the new brand.” A bold, optimistic heart device now sits proudly on pack. As a nod to ‘wearing your heart on your sleeve’, it stands for the love that the IEP farms put into their chooks, egg production and delivery to consumers. Fresh on-pack colours aid product navigation, while quirky typography, call outs and icons relate back to the core benefits of ‘Fresh from our family farms’, health and the caring, friendly personality behind the brand and the producer farms. As Cage eggs are being phased out over the next few years, the newly introduced Colony packs needed to be similar yet easily navigable for the consumer over this period. “We needed to educate the consumer on colony, what it stands for, and introduce the new Health Star rating. There is a lot of information to impart to the consumer and limited space to do it in.” The new look branding has also been applied to a refreshed website. n
breakfast SANITARIUM FUELS BREAKFAST GROWTH NEARLY every New Zealand household buys breakfast cereal with a penetration of 97%. Although breakfast cereals are worth a significant $282M, the category has seen little growth in sales at 1.4% MAT 12/7/15. (Nielsen Scan, Nielsen Homescan Data, July 2015). Sanitarium is the market leader contributing 36.1% to the total breakfast category dollar sales (Nielsen Scan Data 12/7/15). Brands include Weet-bix, Up&Go, Light’n’Tasty, So Good, Cluster Crisp, Sanitarium Muesli, Skippy and Ricies. Weet-bix is the biggest breakfast cereal brand in the market, enjoyed by more than half of Kiwi households (52% Penetration Weetbix Original Nielsen Homescan 12/7/2015). Weet-bix Original has seen strong growth at 4.7% over the last year (Nielsen Scan MAT 120715) and as a long term partner of the All Blacks has a solid consumer and in-store campaign coinciding with the upcoming Rugby World Cup. The convenience segment continues to be a strong source of growth for the category at 5.5% MAT, as consumers search for products to fit into their
busy lifestyles. The way consumers define Breakfast is changing in terms of how and when they consume food in the mornings. They often have more than one breakfast occasion in a morning with convenient formats such as Up&Go Liquid Breakfast catering to this need. To further fuel this growth, Sanitarium is bringing two new products into the Convenience Segment at the end of August. Following on from the successful launch of Weet-bix Gluten Free which has driven incremental sales for the category, Sanitarium are launching a Gluten Free Up&Go. Although in NZ it is estimated that 1% are affected by Coeliac disease1, 26% of Kiwis are interested in reducing their glute intake but are not necessarily Coeliacs2. Gluten Free Up&Go will be launched as a 3 x 250ml pack in Chocolate and Vanilla, the two most popular flavours. It also carries a 4.5
Health Start Rating. Weet-bix GO will also be launched into the Breakfast Convenience segment to address changing breakfast habits. It is a convenient breakfast biscuit that can be eaten on the go and has already been launched successfully in Australia. It comes in four varieties, Wild Berry, Honey & Oat, Apricot Coconut and Apple Cinnamon with each box containing five packs of four biscuits. Complimentary to Breakfast is Non Dairy Milk UHT which grew at 18% in the last year, driven by 82% growth of almond milk. (Nielsen Scan MAT 120715). Sanitarium So Good is represented across the category in Soy, Almond, & Coconut Milks which
represent a unique tasting alternative on cereal and offer a lactose free alternative. So Good Soy, Almond and Coconut milks are extremely versatile and can be used in cereal, smoothies, porridge, as well as in cooking such as in baking, curries and laksas. Following the success of So Good Unsweetened Almond, and Almond & Coconut Milks, Sanitarium has just launched So Good Unsweetened Coconut Milk. These products offer alternatives to consumers preferring no added sugar in non-dairy products and are more popular than the sweetened varieties. n Sources: 1 Southerncross.co.nz; 2 Datamonitor Consumer Report – Market Opportunities in Gluten Free, 2013.
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showcaseaustralia
FARMER JO’S MUESLI
Austrade works with Australian companies wanting to grow their business in international markets. They also work closely with New Zealand companies wishing to export products into Australia. For more information visit: www.austrade.gov.au
FOUNDED in Sydney Australia, Farmer Jo opened the doors to its street kitchen in 2010, bringing the delicious smell of freshly baked muesli to the village of Surry Hills with a dream to take their oaty delights on a journey around the world. Founders Sally and Scott Tulloch wanted to create muesli that was supreme in quality and captured the youthful energy, fun and freedom of their Sydney lifestyle (a city of beautiful beaches and outdoor living). The result being muesli made from the most premium of natural ingredients, bold in flavour and texture. Farmer Jo is building a community with growers and producers to support the sustainability, lovability, care and integrity of their product. Known for their playful packaging & decadent muesli, Farmer Jo’s kitchen is a busy little place constantly producing new and adventurous muesli blends. Farmer Jo continues to grow with a muesli revolution wining over fans from all walks of life. Dedicated to producing the best, Farmer Jo muesli is made by hand using organic and natural ingredients. Every little bag is delivered with the personalised message... “WANT ME EAT ME LOVE ME”. Farmer Jo delivers daily to all the best cafes and retailers across Australia. www.farmerjo.com.au n
GEELONG BRUSH A FAVOURITE SINCE 1936
GEELONG Brush has been manufacturing Brushware products in Geelong, Australia since 1936 and the family business ownership continues with Ida and Ross Durran into the third generation. The family’s recent investment of purchasing cutting edge brushware machinery, has enabled Geelong Brush to compete head on with overseas manufacturers imported cleaning products. Key products include its dustpan and brush sets, domestic indoor and outdoor brooms, cobweb broom handle lines, the huge volume selling sparkle dish brush and the company’s high spec
Industrial Broom range. The company has held market share due to its delivery of great value, functionality and high quality products. The Australian designed and made compact entry point Value Dustpan Set product and the larger Maxi Dustpan & Brush Set, sells over 1 million units each year in just two Australian retail businesses. “The two handles clip together time after time, without fail,” said John Begg, Geelong Brush national sales manager. This assists the retailers and consumers alike in not losing either the brush or the pan component while in store on display or in use in the home, vehicle, workplace or business. Most Chinese basic or premium products do not offer this valuable application. Our brushes are filled with a generous amount of fibre fill too. Both its Dustpan product lines offer quality and value for money. The pans base sit flat to cleaning surface and
collects all waste from the tiniest dust particles to wood shavings, crumbs, splinters and garden pebbles with ease. Geelong Brush has enjoyed valuable ranging support of multiple lines from Woolworths Supermarkets, Aldi Australia, BIG W, Bunnings Warehouses, HomeHardware, Masters Home Improvements, Metcash and SPAR Supermarkets and our large reseller and cleaning Industry distributor base. “We were very pleased when New Zealand’s Countdown Supermarkets ranged a number of our Private Branded
HOUSEHOLD RANGE
Our extensive Household Range covers everything you need to spruce up your home.
products and a selection of Geelong Brush branded lines such as our Maxi Scrub Brush, Cobweb Broom& Extension Handle and Ezi Hang Storage units in early 2015,” said Begg. Geelong Brush is looking forward to expanding its presence in New Zealand with the focus on Australian Made product offers in 2015 and 2016 and would welcome enquiries. www. geelongbrush.com.au or contact John Begg, Sales Manager direct Email: john@ geelongbrush.com.au or Phone + 6 13 5229 7663 n
INDUSTRIAL RANGE
The Industrial Range focuses on items used for both Commercial and Trade situations.
• Cost Competitive • High Quality & Functionality • Reliable • Extensive Product Range Contact: JOHN BEGG, National Sales Manager, Mob: +61 417 430 808, Business Ph: +61 3 5229 7663 Email: john@geelongbrush.com.au www.geelongbrush.com.au
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ONFIRE DESIGN PUTS THEORIES INTO PRACTICE At Onfire Design, MD Sam Allan views package design as the final chance to stand out before the customer plucks a product off the shelves. In his words, “packaging isn’t only about looking good, it’s about sales.” And the Onfire team has been putting its theories into practice on some of New Zealand’s best-known brands. For example, CRC commissioned Onfire to overhaul its entire car care range. Designed to clearly standout from the crowd, the revitalised packaging has breathed new life into this mature brand in what is an ultra competitive market and, most importantly, helped to increase sales. But as well as being busy with a number of clients in the FMCG segment, Onfire has made time to expand across the ditch and opened an office in Sydney. As Allan says, “this enables clients to achieve cut-through and consistency on both sides of the Tasman with their marketing initiatives, whether that’s packaging, branding, advertising or online development.” You can checkout some of Onfire’s recent projects at weareonfire.co.nz n
showcaseaustralia TOPPING THE MARKET SUNSHINE Coast Company, Belladotti, launched their first product Salad Toppers in Noosa Junction and Cooroy IGA in March 2014. They have enjoyed fantastic growth and are now, supplying Salad Toppers to over 1000 stores throughout Australia, as well as exporting to New Zealand. – And have recently launched two more products, Belladotti Soup Toppers and Salad Seeds. Owners and founders, Marco & Mel Guidotti, are very proud of their efforts and are passionate about creating tasty, quick and convenient, gourmet food solutions and bringing them to the Australian market – all from the Sunshine Coast. They personally develop their own flavours, design and produce their own packaging and finally, roast (where necessary), flavour and pack all their products, locally, in Yandina. “As a busy working mother, I know
just how tiresome it can be, with little or no time, to create healthy, tasty and tempting meals for my family, night after night, after night” says Mel. Belladotti Salad Toppers are a quick and easy solution for making delicious, tasty and unique salads, in seconds. They add delicious flavour and crunch, with minimal fuss or preparation. (No cutting, chopping and cleaning). The range includes 100% Australian, lightly roasted and naturally flavoured almonds; crunchy bacon and Caesar bit sprinkles; 3 delicious croutons (Chorizo & Cheese, Sundried Tomato & Parmesan and Garlic Crouton Balls) or crispy, crunchy onions. Salad Toppers are, also, all naturally flavoured, so as a Mum you can be assured that you are not feeding your family any nasties or unnatural colouring. We always source the highest quality ingredients. n
VENDOR SAMPLING TRAYS
VENDOR Trays are a successful business servicing both New Zealand and Australia with their unique branded vendor trays perfect for sampling in-store, events, expos and more. They allow for goods to be attractively displayed where they can be seen and experienced. The trays are light and sturdy and can be customised to type of product and size. For more information visit www.vendortrays.co.nz. n
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ARTISAN Australia & Pacific
FORBIDDEN FOODS FORBIDDEN Foods’s aim is to “Feed The World With The World’s Best”. Company founders, Marcus Brown and Jarrod Milani say that this is not a big ask for two young Melbourne folk, saying they are one step closer to doing so with their flagship product Black Rice. Black rice is a highly treasured rice variety originating from Asia and it is steamed in its husk to capture the nutrients from the bran. The nutty taste pairs well with vegetables, fish or meat and sits well in a stir-fry. Black rice contains the highest amount of antioxidants, protein and dietary fibre of all rices varieties; plus black rice is also a good source of iron, which can be hard to get for plant based eaters who rely on grains and legumes for protein. New to the market, Forbidden foods also have green and red rice varieties. n
FORAGE & FEAST
FORAGE & Feast takes you on a food journey through the seasons. Founder Kelly Magor, has had seasonal eating instilled into her from childhood. Experiences on family farms and the simple pleasure of freshly grown produce shape her memories and her philosophy and outlook on food today. Agriculture has always been an influence in Kelly’s life. She has enjoyed her professional career working with South Australian food and wine producers in marketing and
innovation roles. In Nov 2012, Forage & Feast was born and now Kelly shares her passion for fresh, local produce through her company. The Forage & Feast product collection is about our commitment to delivering flavour and innovation. The products do the work for you, bringing creative flavours to the table and the range changes seasonally to showcase the ripest and most flavoursome produce. This approach ensures ingredients are at their peak and locally sourcedAll products are manufactured in-house, with no artificial preservatives, colours or flavours. n
CRABTREE SMOKED CRABTREE Smoked founder, Alan Crabtree, always had a passion to create unique flavoured salt, so that what he did with his Oak Smoked, Chilli,
Activated Charcoal and Fabulous Grinder Range. The Murray-Darling area of Australia is renowned for its exceptional salts and the Alan Crabtree’s brand is the cream of the crop. He believes in environmentally friendly production methods and helping rehabilitate the salinity affected land in the Murray-Darling Basin in Australia. The texture, pure colour and bitter free flavour of Crabtree salt makes it unique. Alan uses the traditional method of cold smoking which means that smokehouse temperatures are typically done between 20 to 30 °C. In this temperature range, foods take on a smoked flavour, but remain relatively moist and fresh. Alan uses a special cold smoke technique; firstly the salt is cold smoked with recycled french oak wine barrels and then with seasoned olive wood. n
KAIMING AGRO
KAIMING Agro was founded in 2005, starting with semi processing and export of ginger and other root crops like taro and cassava. With the assistance from Fiji Government and FACT-EU in 2009 they built a new factory and with the second stage completed in October 20ll the first batch of crystallized ginger was produced. Currently processing and exporting about 1300 tons of ginger annually to Australia, NZ and US, they are also exporting about 1000 tons of taro and cassava to Australia, NZ and other Pacific lsland countries. Employing 90 staff in the factory and 400 contracted farmers the
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naturally fertile soils and regular rainfall in Fiji guarantee that Kaiming Agro are producing some of the world’s finest tasting ginger, both crystallized and glaze. “Having recently added taro and cassava to our product range we are looking for more opportunities in the New Zealand market”, said Calvin Qiu, Kaiming Agro Processing’s representative. n
OWNED
NATURES WAY COOPERATIVE ESTABLISHED in 1995 to carry out quarantine treatments on Fijian fruit and vegetables, Nature’s Way Cooperative (NWC), is now a thriving agribusiness providing packaging, marketing and technical services to growers. Initially a small enterprise handling just 30 tonnes of papaya each year, NWC now treats and packs about 1,200 tonnes of papaya, mango, breadfruit and eggplant annually. NWC provides an important income source for many farmers, particularly those who have suffered due to the decline of the sugar industry, once Fiji’s primary agricultural export. “The main beneficiaries are commercial exporters who employ large numbers of low income small-
scale farmers as well as local men and women for sorting and grading. “It’s a win-win for everybody,” said Finau-Brown. To increase the size and reach of Fiji’s fresh produce industry, NWC introduced a comprehensive outreach programme which it hopes will become a model for similar industries in Fiji and other Pacific Island nations. Planning to double Fiji’s quarantine treatment capacity for fresh produce over a five year period, NWC has invested in infrastructure, systems and equipment. A new heat-treatment chamber and handling and grading equipment have increased capacity to about 1,200 tonnes per year. Looking ahead, NWC aims to help more small-scale farmers supply the export chain directly. “Export horticulture is the fastest-growing area of Fiji’s farming sector and provides work and income for hundreds of local people. Our activities are also providing a useful template for other forms of agribusiness in Fiji and other Pacific countries,” he said. n
showcaseaustralia
ARTISAN Australia & Pacific
VIRGIN COCONUT OIL
SEA GRAPES
PACIFIC Seaweeds Ltd is a family owned company operating out of Fiji since 2010. The company produces edible seaweed and other marine products, all sustainably harvested from the wild, including its premium grade sea grapes. Its sea grapes come from the pristine crystal clear waters of the Fiji Islands. Pacific Seaweeds ensure that its sea grapes are packed as soon as possible after they are harvested, so that consumers get that fresh ocean taste of the South Pacific in their mouth. Fijians have a long tradition of collecting and consuming different species and varieties of seaweeds. Caulerpa racemosa (or sea grapes)
is one of the most common species harvested in Fiji. They are a tropical sea vegetable and are consumed as part of the traditional Fijian diet. Sea grapes are usually found in shallow tropical seas around the islands of Fiji. They look like a string of luscious green pearls and taste a bit like the ocean with a hint of pepper. Once rehydrated, they have a lovely pop as they burst in your mouth. n
ESTABLISHED in 2002, Heilala Vanilla grows its product on the company’s plantation in the Kingdom of Tonga, to which it harvested its first crop in 2005. The vanilla is exported to New Zealand where a range of value added products are produced and marketed to retail, foodservice and food manufacturers. The latest addition to the Heilala product range is premium quality Virgin Coconut Oil from the Kingdom of Tonga. Heilala Coconut Oil is made using fresh coconuts (not dried “copra”) and processed using their cold pressed method. Each 300ml glass jar contains 100% pure, Virgin Coconut Oil. Made from traditional coconut palms only, no hybrid or genetically modified (GMO) varieties are used. The products are processed without heat and contain no chemicals, bleaching, deodorising or hydrogenation. n
Sofaia Latu, from Tonga, (L) and Jennifer Boggiss at Heilala Vanilla’s premises in Tauranga. A partnership with the Latu family was formed 10 years ago to create Heilala Vanilla.
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LES CREPES DE CATHERINE THE DIFFERENCE BETWEEN THE GOOD AND THE BEST
THE KEFIR COMPANY ANITA and Terry Kyle started making Young Coconut Kefir in 2008, after one of their children was diagnosed with Autism. From there, the duo started making Kefir for other families following a similar route to recovery from Autism. “It flowed into the retail and consumer market as a natural progression rather than by design,” says Anita, who had worked in clothing manufacturing for 23 years prior to The Kefir Company. Terry had come from a Naval Surveying background and Anita says both disciplines allowed for an easy transfer of skill sets and knowledge, allowing them to establish and streamline new procedures. “We knew from the very outset that ensuring quality control and assurance were going to be a major factor in promoting such a radical new concept in food and dietary need,” Anita says. Educating people about gut health has always been a major area that the couple focus on, having seen the impact on their son’s recovery.
“It took another couple of ‘life moments’ before the penny dropped and we thought if this works so well for him, why aren’t we doing this ourselves?” she adds. Young Coconut Water Kefir currently retails several sizes and flavours, meeting consumer needs and requests. The Kefir drink is created onsite in Terry and Anita’s Albany commercial A-grade kitchen, using only young coconuts from the South Pacific islands. Anita says these are received in a fresher state as opposed to coconuts from further afield, ensuring a higher quality of coconut water from which the Kefir is made. The couple intend to release a new flavoured range in the 300ml size later in the year. “As people are ‘on the kefir’ longer and establish more colonies of good bacteria within their gut, their palate seems to change and they revert back to the ‘original/natural’ flavour. The flavoured range seems to help with the initial introduction of fermented foods into the diet.” She adds. Kefir is traditionally a fermented milk drink, although Anita says the company use a different slant on it with using young coconut water (YCW). This removes issues that people may have surrounding absorbing dairy products / casein. The YCW has a nutrition load akin to human plasma and in its raw state, is easily ‘assimilated’ by most people. Having already had fielded interest from as far away as Ireland, Canada and Sri Lanka, Anita says the company’s focus is still based on local stockists, having already had a supplier relationship with Pakn’Save Clarence Street in Hamilton, for the past 18 months.
PROFESSIONAL crepes chef Catherine Boles started Le Crepes de Catherine in 2013. Although she had no former food manufacturing experience, Catherine says saw a gap in the market for a salted caramel sauce. Born and raised in France, Catherine knew salted caramel had been a fashionable flavour for over 40 years, so why shouldn’t it be here in New Zealand. She began producing salted caramel in a jar, as a filling for her crepe catering business and now produces her products in an Auckland commercial kitchen; all products are handmade in small batches and have a shelf life of up to 11 months. “I started off by producing a traditional original flavour sauce and then a couple months later added the vanilla flavour, using Heilia vanilla. I have a new hazelnut product which should be out soon.” She says. Currently stocked n Farro’s stores, delis and gift shops across the country, Catherine says she is offering the Kiwi consumers something different and unique as there are no other caramel in a jar options currently available.
INTER-FRIDGE are proud to announce the release of an exciting new addition to their product range. Watch this space and find out more in the September issue.
To find out how we can help you, call us on 0800 CHILLER (0800 244 553), 027 606 2222 or visit our website at www.interfridge.co.nz
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UNCOMPROMISING ENERGY New Zealand Agent: House of Fine Foods Ltd, Auckland Email: wayne@houseff.co.nz
health&wellbeing Health & Wellbeing Customer Guidance THE need for supermarkets to provide customer guidance towards healthier shopping baskets is significant given the increasing rate and extent of overweight and obesity among adults and children in New Zealand. The majority of people buy most of their food from supermarkets, which now provide and promote a vast range of both healthy and unhealthy foods. What customers eat is up to them, but they need to be able to make informed choices, and have a range of healthy options to choose from. Supermarkets can play an important role in equipping customers with healthy eating information and guidance (e.g. nutritious meal and snack solutions) to make healthy purchases for them and their families across the most common food categories.
Healtheries Go-To For Winter Ills & Chills HEALTHERIES are the market leading brand within the Cold, Flu and Immunity segment in New Zealand Grocery with over 83% share of the segment and growing at +12.3% year on year (AZTEC MAT data to 28/06/15). Some of our top selling products are; well known as the immunity vitamin; Vitamin C is a powerful antioxidant providing immunity support to help you though those cold winter months. Healtheries Vitamin C chewable tablets with a natural orange flavor are available in both 500mg and 1000mg tablets and also available with the addition of Echinacea, are an effective way to get your Vitamin C levels up. Healtheries Garlic, Vitamin C, Zinc & Echinacea with Olive Leaf is a powerful blend of five immune supporting nutrients and herbs. This product helps to relieve
Critical to this is ensuring: • The availability and positive promotion of competitively priced healthier food and beverage products on supermarket shelves • A well-stocked fruit and vegetable and meat section with fresh quality produce and lean meat cuts • Reducing the availability and promotion of unhealthy foods and drinks. Also important, is the reformulation of processed foods to make them healthier, by modifying the portion size and levels of saturated and trans-fats, salt, sugar and fibre as appropriate. In the UK, where the government is working with the food industry and retailers to reduce salt, impressive results have been seen. The overall amount of salt consumed by adults has fallen by approximately 10% – a reduction that experts have found could save more than 6,000 lives a year. n
At Home Colour For Matures By L’oreal Paris
L’ORÉAL Pairs has created the first home hair colour for mature hair, transforming tresses with 100 per cent coverage of greys. Excellence Age Perfect Hair Colour blends grey roots as hair grows thanks to its formulated Layered Colour Technology (LCT) so the colour can adapt to different grey pigment levels. The colour is full of natural-looking highs and lows while masking greys and blending re-growth. n
Garnier’s New Pure Active Range THE Pure Active range comprises three affordable products for oily to combination skin – 3-in-1 cleansing mask, a gel wash, scrub wash. It’s sister range, Pure Active Intensive, comprises a deep pore gel wash,a blackhead clearing scrub and a charcoal scrub.
symptoms of winter ills and chills and support your immune defences. Healtheries KidsCare Vit C tablets are greattasting natural immune supporting chewables that come in super fun animal shapes that contain no artificial sweeteners. Each tablet provides stomachfriendly Vitamin C in a dose that is just right for children’s smaller bodies. n
Pure Active and Pure Active Intensive combine natural active ingredients with advanced skincare technology to fight against the stubborn imperfections of occasional problem skin, ensuring breakouts remain a distant memory. The strength of two per cent Salicylic acid is a key ingredient in the Pure Active Daily Cleansing Gel Wash and Pure Active Intensive Charcoal Scrub. The regenerating and repairing properties of Herbal repair feature in the Pure Active Intensive Blackhead Scrub and Pure Active Intensive Deep Pore Gel Wash. n
Coco-Cola Launches Nutritional Comparison Tool A NEW and improved web-based tool, launched this week by Coca-Cola South Pacific, allows consumers to compare the nutritional profile of its full range of beverages. The easy to use online tool gives consumers the ability to instantly compare ingredients and nutritional information for any two products in the Coca-Cola range, according to serve size. “The online comparison tool gives consumers all the relevant information about their preferred beverages at their fingertips, allowing them to make an informed choice every time they choose one of our products,” said Coca-Cola South Pacific Scientific and Regulatory Affairs Manager Jim Moshovelis. The tool takes into account general nutrient content, % daily intake information, % recommended dietary intake information, ingredient lists and allergen statements as well as serving size - allowing users to compare products from 100mls to 600mls. The tool features all of Coca-Cola’s 86 products in Australia, including their entire range of soft drinks (Coca-Cola varieties, Fanta, Lift and Sprite) through to Powerade, Pump flavoured water and glacéau vitaminwater. n August 2015
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newproducts Introducing New Arnott’s Twisted Faves EVERYONE has their favourite Arnott’s cream biscuit! It’s no surprise considering Arnott’s has been baking New Zealand’s most-loved biscuits for the past 150 years. To celebrate, this August has turned a couple of its most popular cream-filled biscuits on their head –Twisted Faves. Flavour variants include, Delta Cream Jaffa Choc Orange, Monte Carlo Salted Caramel and Shortbread Cream Strawberries and Cream.
Kaweka Classic Beef Stroganoff THIS winter The Kaweka Food Co has created new warm & hearty “Kaweka Classic Beef Stroganoff” to add to their range of shelf stable meals. It is made in Hawke’s Bay with tender NZ Beef cooked to perfection in a delicious mushroom sauce, served on a bed of mashed potato. Just like their other meals there are no preservatives, and it’s purely made with natural ingredients.
Lotte Pepero INTRODUCING Lotte Pepero - a crisp biscuit stick dipped into a mix of crunchy chocolate cookie & white chocolate. At only 32g it is the perfect pack to display for customers looking for an affordable sweet treat to give as a gift or share with friends. Not only that, Lotte is an international brand consumers can trust to deliver a quality product at an affordable price.
New Ravioli Grande
DELMAINE Ravioli Grande features larger pockets of thinner sheet pasta with premium fillings to deliver greater flavour in every bite. Grande’s differ from regular ravioli in three ways; the manufacturing dies are larger, the ravioli is double sheeted and the pasta is thinner. Following on from the success of the initial Grande launch; this August sees the release of two new flavours; Sundried Tomato and Basil and Portobello Mushroom.
New Not-So-Sweet Barker’s Syrups BARKER’S has added two unique flavour blends to its fruit syrups range – Squeezed Rhubarb with Raspberry and Rosehip and Lite Tropical. Both flavours use the natural sweetness of stevia to satisfy not-so-sweet tastebuds.
Aveeno Dermexa
FORMULATED with triple oat technology, the new Aveeno Dermexa soothes and moisturises very dry, irritated skin. Suitable for adults and babies from 3 months the product moisturises for 24 hours, reinforcing a skin barrier. The cream is made out with oat essence and ceramides, to soothe, moisturise and maintain hydration. It is designed for the very dry skins, prone to eczema.
Nesher Malt Non-Alcoholic Black Beer DEVELOPED in Israel in 1934, Nesher Malt is a popular healthy and tasty black non-alcoholic beverage. It is known as a healthy beverage for breastfeeding women and children, and known as the best drink for athletes. In the manufacturing process, the amount of yeast is reduced and the time of fermentation is short, in a way that the amount of alcohol is negligible. Creating a drink that contains less than 0.5% alcohol. The composition of the mineral and salts which are dissolved in Nesher Malt makes it an isotonic drink so the drink creates an optimal intestinal absorption hydrating the body with ideal mineral and salt composition. It is why Nesher Malt’s provides substantial benefit for athletes before and after training. It benefits everybody who requires a drink that contains calories with possibility of ideal absorption and reduces the risk of malabsorption, osmotic diarrheal or constipation. Available from Plum Agencies.
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Super Food Bars THE Health Discovery Co’ Super Food bars is a unique range providing RDI (Recommended Daily Intake) levels across a range of supplements that are nutritionally significant. These breakthrough supplement bars are 100% Natural, Gluten free, dairy free and meet wholefood and paleo standards. Each bar contains a broad range of essential supplements from Omega 3 to Calcium, Iron, Magnesium and Fibre. The Health Discovery Co’ test many different and unique product formulations until it achieves the best natural combination from nature’s best raw materials. Only then do they become part of the Health Discovery range and meet the standard of providing compelling and superior health benefits to our customers.
Vitalzing Milkdrops
VITALZING has done it again, this time with MilkDrops, all natural, sugar free flavour enhancers for milk. MilkDrops come in Banana, Chocolate and Strawberry flavours, with 40 servings in each small bottle. Consumers loved MilkDrops at the recent Auckland food show and are hanging out for the official launch this October.
DOLE has launched a new range of ‘Orchard Grown’ deciduous Canned Fruit to complement its existing tropical fruit. The new 410g lines are Fruit Salad in Juice, Peach Slices in Juice, Peach Slices in Syrup and Pear Halves in Juice. Already the #2 brand in Canned Fruit*, Dole sees a strong need in the category for another complete branded offer, due to the exit of SPC. The new products will be promoted as a group with the Dole Pineapple and Dole Fruit Mix 432-439g range, creating a very appealing consumer offer.
Re Fruit – 100% Fruit Snack.
THE desire to create 100% safe and truly “good for you” snack for adults and children brought to live RE FRUIT by Awesome Foods. Full intense natural flavour and aroma of fruits combined with light crispness that melts in your mouth is very exciting. Re Fruit is low in calories. Naturally free from gluten and fat. Thanks to sophisticated freeze drying technology – that’s taken the world by storm - it’s always available, never out of season, clean snack. NO sugar, colours, flavours or preservatives added. With attractive RRP in mind crispy fruit slices conveniently packaged in portion size foil bags for freshness and come in 5 variants: Strawberry, Apple/ Strawberry, Banana/Strawberry, Mango/Strawberry, Pineapple/Strawberry. For more information contact Innovative Sales & Marketing.
New Dole ‘Orchard Grown’ Canned Fruit Launched
* Nielsen Data Total Supermarkets Dollar Sales MAT to 19/4/15
New Delmaine Offering DELMAINE Cocktail onions are produced to a traditional recipe. They make an ideal accompaniment for cold meats, cheese, salad and sandwiches. Great to add to an antipasto platter. Crisp and crunchy, they are very firm with a fresh crisp taste.
Little Island Expands
LITTLE Island is releasing its Coconut Drinking Milk in new 1 litre bottles to supermarkets nationwide in early September. So far, the Original and Chocolate flavoured milk has only been available in a selected number of Auckland and Wellington stores, as Little Island perfected their manufacturing and distribution processes. This range of dairyfree milk alternatives is made from premium coconut cream and is produced here in NZ. The Original Coconut Drinking Milk is perfect for smoothies, hot drinks, baking and wherever milk is used. The Chocolate Coconut Milk blends chocolate and coconut to provide a rich and creamy treat which contains significantly less sugar than other chocolate milks.
NEW from KAWEKA! • Straight from the sunny Hawkes Bay • All natural ingredients • No preservatives • Great flavours • Convenient packaging
For more information contact your local James Crisp representative.
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award winning handmade
www.puredelish.co.nz
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Original & Chocolate launching September Find us in the chiller aisle Dairy-free milk alternative · Made in NZ hello@tommyandjames.co.nz · (09) 579 1350
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NZ’s First Chilled Coconut Drinking Milk
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new zealand honey producers
New Squeezy Honey
NO DRIP, NO FUSS
manuka blend white clover beechwood
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Now available in a convenient squeezy bottle, our honey is ideal for everyday use, be it drizzling, cooking, baking or adding to hot or cold drinks. We are committed to promoting and bringing awareness to the importance of bees in our lives and the role they play in the future survival of our planet. Because of this we are donating 10 cents from the sale of each bottle to the NZ National Beekeepers association to help fund bee research.
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to order please freephone 0800 335 245 or email: sales@nzartisanhoney.co.nz
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Made by Bees
available from most leading supermarkets...
ask your local deli manager for yolo or call 09 2760826 today!
INternational ChEEse
We brINg it here, from oVEr there! YOU only From the liVE once... juice of 40 not? why lemons
• Earns Gold Medal status in Sampleco Black Box • Over 90% of consumers would recommend Obento Panko Bread crumbs, as it exceeded their expectations. • Have you got stock to sell?
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panko bread crumbs
Sole agent for OBENTO contact:
ORIENTAL MERCHANT (NZ) LTD Tel 0800 10 33 05 Fax 0800 10 33 11 Email: nzenquiries@oriental.com.au Website: www.oriental.com.au
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NZACS STATE OF THE INDUSTRY
THE NZACS State of Industry Report Business Breakfast took place last month at the Crowne Plaza in Auckland. This year the NZACS Committee agreed that having a specific event for interested parties to hear the summary of findings would be more appropriate. Report information was based on the data provided by the Organised Oil Channel and prepared by Coalface Consulting. David Singer from Coalface Consulting presented the summary findings of the State of Industry Report and Lance Dobson from Nielsen the trends and insights within the Convenience Industry.
lastword
Peter Mitchell
THIS month’s Auckland Food Show was an interesting and eclectic mix of exhibitors with little if any participation by the big players in the food industry. Not that it was a bad thing because it gave the up and coming artisan folk a chance to show their wares outside of the markets zone and allow some retail buyers an opportunity catch a variety of fresh and local product. The problem with this type of show, successful as it was, is it’s an exciting collection point for bags full of giveaway goodies with the small guys living in hope there’ll be a repeat purchase. But as much of it is not in the supermarkets, it’s a fairly forlorn hope. Perhaps there’s an answer out there to bring them repeat business but brochures and business cards are not the answer as visitors simply grab product. THERE are things in this industry that cause the eyebrows to rise. My classic of the month was a New World shelf full of parallel imported Coke brought in by a new Hamilton supplier – from Mexico. Glass bottles and all. That’s just sheer nonsense ! THOSE Irish yarns abound. After a hundred years lying on the Atlantic seabed, Irish divers were amazed to find the Titanic’s swimming pool was still full. IT’S a funny thing but most suppliers never look at their own website and the information – or lack of it – being put up by a contract webmaster with data from the sales
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or marketing team. Most companies are very proud that they have joined the online information era but a lot of it needs some much better thought. Many of the websites that we look at have absolutely no contact point excepting a “contact me” reply email. There is no address, no phone number and one gets the idea the person responsible for consumer contact is just trying to hide. It’s a barrier to business and simply a waste of time and money to have a website that doesn’t provide contact. Go and have a look at yours. I’VE said it many time before – most of the allergies claimed by people involving foods are absolute rubbish. I think we’re getting too precious and believe some of the stuff we read – or just want to belong to the allergy party because it’s fashionable. There’s little doubt that most of it from these precious mums is pure self-diagnosis and trendy. An eye opener was the recent Southern Cross medical survey here that showed only 47% of those who believed they had allergies and a mere 37% of those claiming intolerances, had ever been diagnosed by a doctor. But I suppose if we suck up to them, there’s a dollar in it. ADDING to the Irish repertoire, Paddy was doing some roofing work and when he got to the top of the ladder, he called out to his mate Murphy that he was feeling dizzy and sick. Murphy asked: “Ave yer got vertigo..?” Paddy replied: “No, I only live around the corner..” I OFTEN wonder whether the claimed Green Goddess Wendyl Nissen writing in the Herald will ever find a product that could safely be put in a supermarket. Every week she cracks the whip on artificial flavours, preservatives, illegal colours, salt, sugar levels and so on. Well she’s had a go at
many a supplier about human products and more recently whacked Purina over its animal treats she claimed were unnatural and feeding them to dogs was being cruel. This commentator should be sent out to pasture herself and leave the very responsible food industry alone. TWO policemen called their local station on the radio. “We have a case here where a woman has shot her husband for stepping on the floor she had just mopped clean,” reported the policemen. The sergeant asked if they had arrested the woman ? “No sir,” came the reply, “The floor is still wet…” CHANGING the face of the grocery industry around the world, including New Zealand, is the realization that larger brands are losing market share to smaller brands and companies. In the US, there has been a surveyed fall-off in 42 of the top 54 most relevant food categories and I’ll bet that marketers here are seeing a similar situation. Its good news for the entrepreneurs in our business and some of the credit must go to the retailers for recognizing that consumer attitudes are changing as they look for more fresh, local and different product with new tastes and sexy packaging. THE headlines about domestic violence are worrying for many of us. The police say there have been around 100,000 domestic incidents reported to them in the past 12 months and you could probably double that if you counted in supermarket rage. Many times I’ve seen husbands being abused for poor trolley pushing, failing to keep up, wanting products that weren’t on the list – and we even heard of one being smashed with a French loaf. I want to remind the survey people that it’s tough in our shops as well.