SupermarketNews // August 2016

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August 2016 • Vol. 9 No. 8

SIAL WORLD TOUR FINALISTS (See page 14)


editorialcomment IT’S NOT EASY FOR SUPPLIERS There’s a lot of trade noise out there right now about concerning issues, and quite a bit of it is directed at our homegrown co-operative over three key issues – the SAP problem, credit handling and the abuse of sales staff in store. Now, there is always going to be some problems when people are tied to a system but not actually employed in the sense that they are supposedly compliant independent operators; the majority are going to be great people and then there’s the occasional ratbag. In this case, it’s the issue of sales staff abuse. There are regular stories of even senior staff being humbled and abused, but even though they can walk away, they often have families and jobs that are too much to lose. Those abusers are few and far between, but time has now come to name and shame them and let Foodstuffs handle those who step outside the bounds of decency. And we

diarynotes

are the first to admit that Foodstuffs management knows little about these people in their midst because the supply field staff are too scared to report them. But the fact is that abuse is rife in a few stores. In the case of the SAP programme, it has taken longer to bed in than anyone expected although we all know that the end result will be worthwhile. But it is the crossover that is the problem for many suppliers who haven’t got the technical wherewithal of the big multinationals. Among the issues right now are the changes to barcodes where stores are sending product back because it won’t scan. This causes its own problem of handling credits that are taking many months to resolve, according to some suppliers and resulting accounts payable and receivables not working efficiently. This has resulted in stock being left in warehouses and, in some

OCTOBER 4-6: NZ Juice & Beverage Awards OCTOBER 7: Packaging Design and Innovation Awards, Auckland

SEPTEMBER 22-24: Annapoorna – World of Food India, Mumbai

Peter Mitchell Publisher

NOVEMBER 10: Convenience Industry Leaders’ Summit, Auckland DECEMBER 5-7: SIAL Middle East Abu Dhabi

OCTOBER 16-20: SIAL Paris SEPTEMBER 3: Grocery Charity Ball, Auckland

cases, considerable losses. The first approach of several years ago was that the South Island system was to be used and expanded, but that seems to have been discarded. We all have sympathy for Foodstuffs because the basic infrastructure is there, but somehow one has the feeling that some in-store operators might be challenged to handle the technology and their own frustrations surface. It can all be fixed, without doubt, but the frustrations of suppliers have made some of them even ask if it is worthwhile continuing in this industry under such a barrage of problems. We all want to resolve these problems and just get on with business. n

NOVEMBER 2-4: FGC’s Annual Conference Gold Coast, Australia NOVEMBER 7-9: Yummex Middle East, Dubai

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18 33 38 SupermarketNews is published under license. Please direct all enquiries and correspondence to SupermarketNews. The opinions and material published in this edition of SupermarketNews are not necessarily those of the publishers unless specifically stated. All material in this publication is copyright and may only be reproduced with the consent of the publisher. Copyright 2015

PUBLISHER Peter Mitchell, peter@reviewmags.com

EDITORIAL TEAM Rossella Quaranta, rossella@reviewmags.com

MANAGING DIRECTOR Tania Walters, tania@reviewmags.com

ADVERTISING SALES Felicity-Anne Flack, felicity@reviewmags.com

EDITORIAL DIRECTOR Sarah Mitchell, sarah@reviewmags.com

SENIOR DESIGNER Raymund Sarmiento, raymund@reviewmags.com

THE NEW ZEALAND BEVERAGE COUNCIL (NZBC) P.O. Box 47, AUCKLAND 1140, New Zealand. Email: info@nzbc.nz Phone: +64 9 309 6100 DDI: +64 9 302 9932

JAN 29 – FEB 1 2017: ISM Cologne, Germany

contents

04 News 12 Trade Talks 16 SMA feature 30 Beverage News 36 What’s New

The NEW ZEALAND BEVERAGE COUNCIL is an industry association whose members cover all aspects of the non-alcoholic beverage market both in New Zealand and the export markets. The Council members are spread throughout New Zealand and come together annually for an industry conference that covers industry issues and is addressed by international speakers. The organisation monitors product quality and sets standards for the industry and runs national competitions and awards.

Design Assistant: Hannah Sames

ATTENTION GROCERY SUPPLIERS The Food and Grocery Council is an industry association for grocery suppliers providing members networking, events, industry information and strong advocacy. Contact us for information on the benefits of membership: Katherine.rich@fgc.org.nz • Networking • Industry Updates • Conference and Events • Education and Training • Advocacy and Law Reform

CIRCULATION & DISTRIBUTION MANAGER Kieran Mitchell, kieran@reviewmags.com

ISSN NO. 1173-3365

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

www.fgc.org.nz

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STEWART TO LEAD MERCHANDISE TEAM

Kevin Bowler

FRUCOR HAS FOUND ITS CEO

Frucor beverages have a new head for New Zealand, Kevin Bowler, who has just resigned from his role as chief executive of Tourism New Zealand after nearly seven years. He will leave at the end of October. Before joining Tourism NZ, he had been general manager of consumer marketing for Telecom and, more recently, CEO of Yahoo. Under his leadership, visitor spend has significantly increased due to targeted, digital-led marketing. Bowler is set to begin his new role in November. “I’m excited about being a part of a business focused on leading positive change in the beverage industry, helping consumers to make better choices about the beverages they choose.” n

BETTER DRINKS MAJOR LOSS

The Better Drinks Co has taken a $43.3 million loss on board for the past year after writing off all its goodwill from purchases over the past few years. The company actually made a $12.8 million gross profit, but its operating result included the goodwill write-off. The company is owned by the Japanese Asahi Group and its brands include Charlie’s, Phoenix, Juicy Lucy, Ti-Tonics, Real Iced Tea and Stash Tea. Sales for the last calendar year were fractionally down at $31.3 million. n

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After six years as chief financial officer with Foodstuffs North Island, David Stewart has now been appointed as the company’s general manager of merchandise, taking the role over from Baden Ngan Kee. “Under Baden’s leadership, the merchandise team has excelled, keeping on top of consumer trends and delivering innovative solutions across our banners at a time of increasing focus on e-commerce,” said Chris Quin, CEO of Foodstuffs North Island. Speaking of Stewart’s appointment, Quin pointed out that his direction had been instrumental in enhancing the financial performance of the coop; Stewart will now bring his expertise and insight to the merchandise team, focusing on the most effective and integrated practices. n

SCHNEIDER (WPO), GRIMA (AIP), HUMPHREYS (PAC.NZ) AND DINGLEY (APPMA).

AN INDUSTRY WITH PURPOSE Despite challenges and complexities, our packaging industry is in the right place and looks at the future with confidence. The Packaging Council of New Zealand took stock of its 2015/2016 activities at the Annual General Meeting. According to president Harry Burkhardt, Council’s members are leading the way with integrity and authenticity, becoming more and more aware of their role in promoting safe products and sustainability. To give you a few figures, the industry employs around 48,000 people and accounts for 1.8 percent of GDP with $3.9 billion of annual sales. In order to be successful, packaging producers need a strong sense of purpose, just like ‘good’ packaging itself. For Sharon Humphreys, executive director, Packaging Council, it also comes down to better communication, as packaging manufacturers cannot escape

their dual and conflicting roles of waste preventers and waste creators. One way to solve this paradox is to share information beyond organisational boundaries and work in partnership with other industries. Over the last year alone, the Packaging Council has established a tripartite alliance between the Australian Institute of Packaging (AIP), the Australian Packaging and Processing Machinery Association (APPMA) and PAC.NZ. This partnership has helped create a single platform for packaging awards in Australasia, which will take the NZ Packaging Awards to the next level. In this context, innovation and R&D are also crucial, Humphreys pointed out, as is diversity. “We have to bring in the brightest and the best because those are the people that we need.” n

APPETITE FOR SAUCES

The American market is about to get its hands on Wild Appetite’s quality sauces. After having developed specific brand strategies, the Auckland-based company has scored a US distribution deal for two of its brands, Wild Appetite and Marlborough Fine Foods. According to executive director Peter McCracken, the expansion is a result of significant investment in R&D, packaging and targeted market development, as well as of a favourable exchange rate. n

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BACK TO TAUPO To be held on 4-6 October 2016, the NZBC Annual Conference will return this year to Wairakei Resort, Taupo, with a line-up of prestigious names that is set to be updated in due course. The theme is ‘Partners in Progress’. Among the confirmed speakers so far are Dr Bill Shrapnel, one of Australia’s most experienced dietitians, specialising in dietetics, community nutrition, the non-government sector and the food industry, with a focus on coronary heart disease. Shrapnel has recently developed a model to assess the nutritional quality of carbohydrate-rich foods. Also on the list are Geoff Parker, CEO of the Australian Beverage Council; Adrian Toft from Interconnect, who will provide insight into the NZ bottled water industry; and Dr Paul Wood, author of ‘What’s Your Prison?’ (www.whatsyourprison. com), who has created a unique personal development approach to help people break out of their patterns. A lso, Brendan Horan (TBC) from Organics New Zealand will talk about the proper use of organic claims. The conference will once again offer a wealth of networking opportunities and face-to-face interaction with industry leading suppliers, not to mention the annual New Zealand Beverage Awards dinner. To register for the event, visit the NZ Beverage Council website at www.nzbc.nz. n

KIWIS TEND TO BUY LOCAL

When it comes to food and beverage products, one in five New Zealanders always buys NZ-made, while the majority of Kiwis (65 percent) try to buy local as often as possible, a recent survey from Munchkin has revealed. Provenance is important to more than two-thirds of people surveyed (69 percent), mostly because they want to support locally-made products (35 percent), or are concerned about food safety standards (34 percent) and additive levels (20 percent). Additionally, the country of origin is a key purchase driver for 86 percent of parents with school-age kids. After extensive global research, California-based company Munchkin has chosen New Zealand for the launch of its new Grass Fed milk-based formula, produced from grass-grazing cows in Canterbury. (read the full story on supermarketnews.co.nz) n

CONVENIENCE INDUSTRY BOARD

The Association of Convenience Stores (NZACS) has announced its 2016/17 committee with former oil channel executive Dave Hooker as its new executive director. The retailer committee members are Andrew Lane (Night’n Day Foodstores), Tim Stevens (Number 8 Retail Group), Esther Thomson (Z Energy), Peter Morton (Herbert Morton) and Paul Clausen (Mobil). Supplier committee members are Luke Dudman (British American Tobacco), Peter Glass (Imperial Tobacco), Ricky Sparks (Pacific Optics), James Vincent (Frucor), Steve Fielder (Coca-Cola Amatil) and Paul Mallard (Fonterra Brands). n


MERCHANDISE MOVE

TWENTY YEARS AND COUNTING

David Pawson, wholesale merchandise manager of Foodstuffs South Island, has left the company after 19 years in the role. He has retired to pursue personal business interests after 36 years in the grocery industry. n

LOSING CONFIDENCE

In the second quarter of the year Kiwis were less optimistic, and more than a third of us (35 percent) believed that New Zealand was going through an economic recession, the latest Nielsen Global Survey of Consumer Confidence has revealed. The online survey focused on three key drivers of confidence: job prospects (deemed as ‘good or excellent’ by only 46 percent of respondents, from 52 percent in Q1), personal finances (55 percent were optimistic, from 57 percent in Q1) and immediate spending intentions (39 percent were confident, from 44 percent in Q1). According to Nick Tuffley, chief economist, ASB, the outlook for the local economy remains quite positive, ‘with many export sectors faring well over the past 18 months.’ n

NEW COMMERCIAL HEAD Graham Henderson is Foodstuffs NI new commercial manager and is charged with the delivery of the new Commercial Operating Model and the implementation of this strategic programme. n

SALLY COPLAND

Countdown’s online shopping service turns 20 this year and, to celebrate this milestone, the supermarket chain has teamed up with Samsung to bring Kiwis the Family Hub Refrigerator, an innovative appliance that allows customers to place their orders straight from its touchscreen display. Twenty years is an impressive amount of time if you consider how different our everyday lives were in 1996. It was the age of old-fashioned computers, floppy discs and dial-up noises that (to our ears) sounded like echoes of the future. It comes to no surprise that the average shop could take more than an hour. Countdown started trialling its online shopping service in that context with just 100 customers, and today the company receives around 20,000 online orders every week from more than 80,000 customers across New Zealand. “This 20th-year celebration is all about us staying at the full front of innovation,” said Sally Copland, head of online shopping, Countdown. Technology is an enabler, she pointed out, and

regardless of what will be developed next—be it delivery drones or self-driving trucks—the underlying purpose won’t change: making life easier for customers. As rival Foodstuffs is about to launch its own online ordering service, there seems to be enough room for competition. “We welcome competition. Who wouldn’t want to be in the game of delivering food to Kiwis every single week? It’s a great place to be, and we’re proud of what we’ve done over the past 20 years, building up a service that provides customers with choice and flexibility.” Of course, growing the online business doesn’t mean physical stores are going to disappear anytime soon. Quite the contrary. “We started our online platform with two personal shoppers who were filling the orders from a hundred customers, and now we have 1700 in our stores who are trained to pack the groceries for our customers. Our people and our network and our stores are a core part of what we do as an online shopping business.” n

3 VALUE PACK 22% of confectionery consumers have Mentos as their main brand*

Trade consumers up by offering them a value pack

Increase your shopper basket spend Shelf-ready or hangsell packaging for aisles and checkouts * Snap Research Dec 2015

NEW VALUE PACKS AVAILABLE IN MINT AND FRUIT Contact your DKSH New Zealand Limited representative for more information.

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COUNTRY- ITALIAN OF-ORIGIN EXCELLENCE LABELLING

UNSTOPPABLE RISE OF CRAFT BEER

Despite the overall alcohol category remaining steady, New Zealand’s beer is increasing its value to a worth of $730 million. Since 2010, craft beer has doubled in sales (123 percent), and premium and sub-premium beer have increased by 25 percent, whereas mainstream beer has declined by nine percent. Consequently, sales of single bottles have doubled, although the biggest sales still come from 12 and 24pack formats. The wider choice of specialty beers, including ‘sessionable’ brands, appeals to those consumers looking for something different, especially male drinkers aged between 20 and 50.

“The upside for retailers is that the choice provides new opportunities to drive sales, an appealing prospect that can bring incremental revenue to some of the more traditional segments of the beer category,” said Geoff Smith, commercial development director, retail, Nielsen. “At the same time, everyone – brewers, distributors, retailers, and consumers – don’t have an infinite capacity for more and more. The trick is knowing which varieties consumers are thirsty for, particularly as the arena continues to widen.” According to Nielsen research, the most relevant rise was in the light beer category, which has increased by 352 percent over the past five years. This trend is likely to be due to more flavour options being made available and, of course, to stricter alcohol limits for drivers. n

Australia has now implemented its new Country of Origin labelling system and, under this new law, all country-of-origin labelling requirements will be contained in Australian Consumer Law. Businesses, including grocery, will have two years to sell current stock and change their labels to comply with the new law before it becomes mandatory on July 1, 2018. This is an important issue for New Zealand grocery exporters. n

RECORD NUMBER OF ENTRIES An unprecedented number of companies, up by 62 percent compared to 2015, have entered their products into the New Zealand Food Awards this year, hoping to win judges’ hearts and earn a ‘Quality Mark’ for their brands. Entrants range from artisan producers to large manufacturers. All finalists will be named on September 1, and the winning products are set to be announced at a gala dinner on October 13. n

From 25 to 28 October, around 1200 exhibitors, 30,000 visitors and 1,000 buyers from the international food industry (including Coca-Cola, Unilever and Fonterra) are expected to attend Cibus Tec 2016 in Parma, Italy. German partner Koelnmesse has contributed to a 20 percent increase in international presence, bringing its industry experience and the high standards of Anuga FoodTec and ProSweets. n

CHANTAL PURCHASED The owner of Eco Store and Huckleberry Organic Retail stores, Peter Kraus Group, has purchased Chantal Organics. The move has been announced by David Alexander, business development manager, Chantal. “The Peter Kraus Group is firmly committed to upholding the values of Chantal Organics in providing organic and natural products to our customers,” Alexander said, adding that the group is also excited about the opportunity to help strengthen and build Chantal’s company, staff and product range. “This is a fabulous opportunity for Hawke’s Bay and shows a great confidence in our region.” n

FOODSTUFFS’ CHECKERS CHECK-IN Over 290 checkout operators from Auckland North, Central and South regions have displayed their impressive skills onstage and competed against each other for the title of Foodstuffs North Island Checker of Year. The Auckland’s events were just three of ten regional competitions having been held throughout the North Island over the past few weeks. Mystery shoppers will now test each region’s winner, but we will have to await the company’s Excellence Awards on November 26 before we know their names. n

Auckland South—Emma Croker (1st) and Rameeza Begum (2nd), both from NW Clendon

Auckland Central—Camille Pineda (3d, NW Howick), Nitu Kaur (1st, NW Victoria Park), Blessing Taulagi (2nd, NW Stonefields)

Chris Quin

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Auckland North—Deanne Hornigold (3rd, P’nS Albany), Olivia Sanderson (1st, P’nS Albany) and Heather Pearson (2nd, NW Warkworth)



IMPROVED STORE ON WAIHEKE

KEY TO TRADE INNOVATION

After months of anticipation, a bigger and improved Countdown Waiheke supermarket has finally opened its doors on the island with over 12,000 new product lines. The upgraded 3,490 sqm store is completely plastic-bag-free and has helped create 20 additional jobs, bringing the total to over 100 employees. Among the features of Countdown Waiheke are an expansive fresh produce department, a full production bakery, self-service checkouts, sushi and a Lotto counter. n

General manager Sam Aitken (left) & Sales manager Leon McDonald

While the grocery industry abounds with newcomers, each with a fresh idea, the stability of older and longer established companies continues to be the key to success. And amongst those recognised for their reputation and longevity is William Aitken & Co whose management team is now touching the family’s fourth generation. The company first saw the light of day 72 years ago in 1944, when William Aitken launched what is now one of the largest independent food importers in the country. He used his experience at the long closed importer Gollin & Co and as a Government commission agent feeding the American troops in New Zealand to create his own company and saw opportunities in the likes of olive oil and other European commodities. The Auckland-based business still has strong European product connection with the likes of cooking oils such as Lupi and Carbonell, but also has an extensive range of innovative products like the recently successful Bliss rice bran oil that have become New Zealand’s household names. Like other older established companies, Aitkens are strong on relationships with both their trading partners and their customers. And like others in the long term grocery business, younger thinking and innovation have been a constant. The current managing director Graham Aitken took

Directors Don Graham (left) & Graham Aitken

over from his father Pat after spending his first ten years in the IT industry. A few years ago, he was joined by his son Sam as general manager and daughter Hannah now specialising in marketing support. To boost the international development and product sourcing, well-known grocery entrepreneur Don Graham came on board seven years ago as a co-director responsible for new product development. The latest member to join the management team is sales and marketing manager Leon McDonald, who brings with him over ten years FMCG experience and relationships across NZ, Australia and the UK. The company is a substantial supplier to both Foodstuffs and Progressive as well as key foodservice suppliers along with providing raw product for local manufacturers. In line with current market trends, the company uses a sales and marketing agency, in this instance Centurion Sales, and has also partnered with Cardinal Logistics for its timely warehousing and distribution activities. Aitkens have come a long way over the past 72 years from an original start-up in Wellington to become a leading full-service importer, marketer and distributor with a strong line-up of international brands. Contact is don@wilait.com and the company can be reached on 09 370 0000. n

E N O R E B M U N L I O NG

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Lupi Organic is produced from organically-farmed olive groves, grown at higher altitude. Special Selection is produced using selected olives harvested exclusively by the traditional method to create a full flavoured olive oil. *AC Nielsen data, MAT Value Sales to 24th July 2016

Imported and distributed by William Aitken & Co. 91 College Hill, Freemans Bay, Auckland. Email: wilait@wilait.com Phone: +64 9 370 0000

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$200M PLAN FOR NEW ZEALAND

Roger Cathro

OUTSTANDING INSTORE BAKERY

More than 550 bakers have had their pies judged to determine the 20th Bakels New Zealand Supreme Pie Awards winner. Two of all the winning bakeries belonged to Foodstuffs’ supermarkets, namely Dan Shaw from Havelock North New World (Hastings), who was awarded Silver in the Gourmet Fruit category for his caramelised walnut, black Doris plum pie, and Roger Cathro from Pak’nSave Petone (Wellington), who managed to take home three awards this year: gold in the Gourmet Meat category for a steak and mushroom pie; another gold in the Potato Top category and silver in the Mince & Gravy category. In the Commercial/ Wholesale (mince & cheese) category, Terry McMahon of Christchurch-based Couplands Bakeries scooped the top prize, followed by Eddie Grooten of Dad’s Pies and Murray Swetman of Ponsonby Pies, second and third position respectively. Paul Barber of Goodtime Foods was mentioned as ‘Highly Commended’ in the same category. n

Foodstuffs has announced an investment of over $200 million in new stores and refurbishments, with at least 300 to 400 jobs being created. Property developments throughout New Zealand include 11 upgrades ($80 million) and seven brand-new supermarkets ($120 million), three in the South Island and four across the North Island. “Some [customers] Lindsay Rowles want more modern facilities with a wider range of products, while others are focussed on cost savings and environmental sustainability. We are investing to cater for these needs well into the future,” said Lindsay Rowles, general manager of property development, Foodstuffs North Island. Roger Davidson, general manager of property and retail development, Foodstuffs South Island, also pointed out that training and career advancement opportunities are both a considerable part of this strategy. n

NORTH ISLAND

NEW STORES: Pak’nSave Tauriko (Tauranga), New World Papakura (South Auckland), New World Te Kuiti and Pak’nSave Tamatea (Napier). REFURBISHMENTS: Pak’nSave Clendon (South Auckland, New World Willis Street (Wellington), New World Pahiatua, New World Metro in Auckland and New World Orewa.

SOUTH ISLAND

NEW STORES: New World Ferry Road (Christchurch), Pak’nSave Queenstown and Four Square West Melton (Christchurch) REFURBISHMENTS: New World Halswell (Christchurch), New World Lincoln, New World Elles Road (Invercargill), New World Alexandra and Pak’nSave Timaru.

“OUT OF TOUCH WITH REALITY” Following a heated debate over cage-free eggs, the egg industry has now decided to intervene in the matter, deeming criticisms by cage-free egg advocates as ‘out of touch with the needs and concerns of the majority of Kiwi shoppers’. According to the Egg Producers Federation of New Zealand (EPF), the majority of New Zealanders work to a weekly food budget. Calls for supermarkets to switch to selling cage-free eggs would not only be impractical but would also leave consumers and the industry exposed to vulnerabilities. Additionally, given that free-range eggs account for only 18 percent of national production, switching to solely cage-free eggs would take years. (Read full story on supermarketnews.co.nz) n

Roger Davidson

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LAUNCHING EUROPE’S LEADING TOILET CARE BRAND

Brad Banducci, Chief executive of Woolworths

FIVE STORES TO SHUT DOWN Five Countdown stores (six with Countdown Waihi, which has already been shut for safety concerns) are set to close their doors before the end of their lease term, Australian parent company Woolworths has announced. The move won’t happen overnight, allowing time to redistribute workers elsewhere. “These closures are unlikely to happen this financial year (1 June 2016 - 30 June 2017). As is always our priority, we will work with team affected by closures to transfer to nearby stores,” James Walker, general manager of corporate affairs, Countdown, told SupermarketNews. Walker added that Countdown’s employment numbers would continue to increase

over the next financial year, with the addition of 600 new customerfacing roles across all supermarkets. In the coming months, closures will also be counterbalanced by three new openings and two replacement stores. The announcement is part of a Market Update that Woolworths Ltd has provided to the ASX. On the whole, Woolworths aims to exit 30 stores across the group, including 17 Australian supermarkets, four Australian Metro stores, six New Zealand supermarkets and three hotels. The company has also identified 34 underperforming stores (three only in NZ), and a decision on whether or not their lease will be renewed is yet to be made. n

Henkel has just brought Bref, Europe’s leading toilet hygiene brand, to New Zealand. Already used in over 20 million households all over the world, the brand is set to help the toilet hygiene category in NZ reach its full potential, according to Lambert Bloderer, general manager, Henkel Laundry and Home Care. “The probability to grow the category by bringing in new shoppers is very high, particularly with the proven success of Bref’s innovation globally,” he said. The launch has exceeded Henkel’s expectations thus far, as the company looks forward to further developing this space with NZ retailers. “First market readings are showing strong indications for category growth of 4.5 percent in Rim and Tank Action* and all of the Bref Power Active variants are already ranked in the top 10 products in the Rim Action,” said Ashlee Kilov, brand manager, Laundry and Home Care, Henkel Australia and New Zealand. Bref’s release has been supported by an all-encompassing strategic marketing plan, featuring TV

and digital advertising, PR, sampling and in-store demonstrations. “Our launch TV advertising campaign will see more than 3.26 million New Zealanders exposed to the brand through placement in some of the country’s highest performing TV shows, including Home and Away, My Kitchen Rules and Neighbours,” said Kilov. The toilet care line-up includes Duo Active liquid rim blocks, Duo Cube in-cistern blocks and Power Active solid rim blocks. Since the latter was launched in 2010, with a distinctive four-in-one balls format, Henkel has produced over 1 billion packs for 50 international markets. For more information, visit www. bref.co.nz. n *Aztec Latest 4 weeks till 22/05/16

The best pasta deserves the best pallet. - Jane Smith

Logistic Coordinator, San Remo

San Remo - The Pasta People since 1936.

Contact Shaun Sievwright

021 346 081 10

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www.loscam.com shaun.sievwright@loscam.com


INTRODUCING

ESPRESSOTORIA THE PREMIUM COFFEE CAPSULE SYSTEM

www.espressotoria.co.nz

WHY SHOULD YOU RANGE THE ESPRESSOTORIA SYSTEM? • Australia’s No.1 selling capsule machine in retail (QTR 24.05.2016)* • Launching into retail with market first ‘BUY 6 VITTORIA COFFEE CAPSULE PACKS & RECEIVE A FREE CAPSULE MACHINE’ offer. • Established demand – Thousands of machines already sold in NZ through direct online sales. • Major launch support to include: print, radio advertising and in-store sampling activity. • A range of brands available including Caffé Aurora, Vittoria Coffee & Chicco D’oro.

RRP $99

Vittoria Food & Beverage Auckland Office: 09 9845675 Or contact your local Alliance Marketing Representative *Source: IRI Market-Edge, Woolworths & Coles Scan, Total Capsules Machine Unit Sales, QTR to 24.05.2016


tradetalks

BUSINESS LIGHTING SOLUTIONS Though the difference between high and low-quality lighting solutions might not be apparent at first glance, its importance at the point of sale is beyond dispute. It is well established that lighting has a significant influence on consumer behaviour. Ensuring fresh produce and products look appealing to consumers is key. This is where science, marketing and design meet. NZ-owned Business Lighting Solutions (BLS) is a leading manufacturer and supplier of locallydesigned LED lighting products for retail and industrial applications. Over the past eight years, the company has provided solutions for a number of supermarket upgrades and refurbishments, including 11 Countdowns and 13 New Worlds and Pak’nSaves. “We are a proven supplier. If stores are considering upgrading to a new state-of-the-art LED lighting solution, with a minimum service life of ten years, then they should certainly talk to us before taking the plunge,” said Paul Stoddart, director of BLS. When choosing an LED lighting system, there are several criteria to be considered. On an operational level, stores need to look at efficiency—how many units of energy would be consumed, how it is going to perform over time and, importantly, whether or not the product is compliant with electrical safety standards. “Many LED products are imported at the lowest possible cost with little or any checks of compliance or manufacturing process. It’s easy for store owners to fall into the trap of buying on price, as product and component quality varies dramatically. Price has to be considered over the long term in combination with how the product will perform in terms of quality of light, efficiency, reliability and product life.”

Good lighting is essential; colour rendering and colour temperature directly affect the mood and speed at which people shop and engage with products within the retail space. At the same time, the solution must be considered for its potential to deliver long-term benefits. All of BLS solutions, both for low and high bay applications, are designed here in New Zealand with energy savings, versatility and aesthetics in mind. Their design and specification eliminates unscheduled maintenance and have been proven in market to perform well over the long term. BLS offers detailed energy audits to help clients make better-informed decisions by comparing available solutions in terms of ROI, net savings of power and maintenance. “It’s a very comprehensive methodology, unrivalled in New Zealand, which assesses both qualitative and quantitative data of a project,” said Stoddart. Among BLS retail products are T8 and T8D Tube

Adding value to New Zealand’s food chain

Series, LiteBay, beautiful High Bay Pendants and the Infinity fitting, a flexible linear light fixture that’s easy to install on a broad variety of substrates. Each store, of course, has its own needs. To fit lux levels to Foodstuffs’ target standards while also reducing power consumption, New World Kerikeri opted for the BLS Infinity solution, which provided the best aesthetics and efficiency outcomes for the site. Countdown Eastgate, for its part, decided to replace the existing fluorescent tubes and metal halide pendants with BLS’s LED tubes and high bay pendants. “One of our best-selling options is LiteBay, a high-efficiency, fullspectrum light that features native dimming and can be used with wireless technology for ultimate control, with access via computer or smartphone. This model has been installed at Botany Pak’nSave with great success.” This month BLS will also launch three exciting new LED products in NZ and Australia. n

ASB Showgrounds Auckland New Zealand

NZ’S LARGEST FOOD MANUFACTURING AND PACKAGING TECHNOLOGY TRADE SHOW

200+ specialist industry exhibitors Discover the latest innovations and technology Free industry lead seminars Exclusive VIP networking events REGISTER AND ATTEND FOODTECH PACKTECH, FOR YOUR CHANCE TO WIN A FORD UP TO THE VALUE OF

+ ORC*

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*Visit website for T&C’s

Co-locating with Materials Handling & Logistics (MHL)

www.mhlexpo.co.nz


y l f r e t But e range chicken... fre e c n e i n e v n o c r e t e l win p e d m a m si NEW

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BE CAREFUL WHEN MENTIONING THE OLYMPICS Major sporting and other large-scale events present huge advertising opportunities. All brands want a piece of the action, whether through paid sponsorships or otherwise. For event organisers and sponsors then this is obviously legitimate, but much less so where brands having no official association with an event attempt to “free-ride” off the event’s publicity. The law provides some protection for organisers and sponsors to ensure that their exclusivity is not undermined.

Key points for advertisers seeking to leverage major events are: 1. The Major Events Management Act 2007 places restrictions on marketing and advertising around “major” events held in New Zealand (the MEMA). These restrictions apply in addition to

the Fair Trading Act 1986, the Trade Marks Act 2002 and the Copyright Act 1993 and the common law of passing off that protects against unauthorised use of intellectual property and/or misleading consumers as to an official association between a brand and an event. 2. The MEMA prevents advertisers from using any words or images that suggest an association between their brand and the event when such an association does not exist. Advertisements that suggest an approval, authorisation, sponsorship or any other kind of commercial arrangement with an event will break the law. This is known as “ambush marketing”. 3. Advertisers cannot use certain words, emblems and phrases that are used in connection with a major event that is “protected” and, if used, the advertisement will be deemed to be suggesting an association and so break the law. 4. The Commonwealth Games and Olympic Games are of such global importance that words and emblems used in connection with those events have permanent protection under the MEMA. For example, “Olympics”, “Rio 2016”, “Olympic Gold” and

Naturally free-flowing from the Tuscan Apuan Alps Enhances well-being Lowers acid levels

For trade orders contact: Topline Marketing 09 416 4061 www.toplinemarketing.co.nz

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the five-ring Olympic symbol are protected. 5. However, when advertisers are using protected words and emblems or referring to major events in the ordinary course of their business or to indicate the purposes of their product, they do not need to worry about the MEMA. An example of clever advertising is Wendy’s launch of its black-coloured hamburger bun, “coincidentally” before the 2015 Rugby World Cup. Wendy’s was not a sponsor of the RWC, and its attempt to associate with the event was quickly challenged. Wendy’s answer was that the black bun was introduced for its health benefits and reflected international trends. The MEMA did not apply to restrict advertising activity around the 2015 RWC as it was not based in New Zealand. Even if it was, we doubt that it would have prevented the use of black buns by Wendy’s. As New Zealanders we love to get behind our team and participants, however with the 2016 Rio Olympic Games now in full swing, brand owners should be very cautious in giving expressions of support through their advertising. Breaches of the MEMA carry fines

of up to $150,000. To date, there have been no prosecutions under the ambush marketing provisions or for breach of the permanently protected words and logos relating to the Olympic Games. This is not to say that advertising activity is not drawing the attention of official sponsors seeking to protect their patch. Upcoming events that may qualify as “major” and be caught by the MEMA are the World Masters Games 2017, Women’s Hockey World League Final in 2017. Closer to the time advertisers should look out for the list of protected terms and logos for those events which, if used without authorisation, would amount to an automatic breach of the MEMA. The Guide to the MEMA 1 issued by the Ministry of Business, Innovation & Employment is a useful resource for advertisers wanting to learn more about this area. n

Mark Gavin

Partner at Hudson Gavin Martin


TAKING YOU ON A WORLD TOUR

At World Tour by SIAL earlier this year, the SIAL judges chose 28 country winners from a lineup of 86 products. Lewis Road Creamery took out the New Zealand country prize against some stiff competition from Soda Press Co sodas and Huffman’s Original Chilli Pepper sauces. It is from this line-up of country winners that the global winner will be announced in October at the SIAL 2016 exhibition in Paris. In this two-part series, commencing with this issue and concluding in our September issue, we are featuring the world finalists to give an insight into the variety of products and innovation taking centre stage at the exhibition. For more information on these products, email tania @reviewmags.com ‘OUR PICK’

NORWAY

SALMARAW, SALMA Salmaraw is a ready-to-go sashimi kit that contains fresh SALMA sashimi, ponzu sauce, toasted sesame seeds and a specially designed eating utensil. The company has spent many years researching and developing this product, aiming to create a fresh-quality sashimi with a longer shelf life. For its packaging design SALMA enlisted the help of awardwinning industrial designer Johan Verde.

NZ COUNTRY WINNER Lewis Road Creamery has changed the way Kiwis think about flavoured milk, and continues to innovate.

SOUTH AFRICA

EARTH’S ESSENCE Earth’s Essence is the result of a patented process that marries two completely natural, uniquely South African winemaking ingredients to create an exciting and entirely new wine category. Only the highest quality grapes are used. To keep the wine sulphur-free, it is fermented and matured with wood from indigenous South African Rooibos and Honeybush plants. This innovative process is natural and sustainable, without added sulphites or preservatives. Additionally, Earth’s Essence is made from the Pinotage grape varietal, being a truly unique and proudly South African product.

FRANCE

BRAZIL LACTOSE-FREE CHEESE, TIROLEZ Healthy food stores are on the rise in Brazil, and supermarkets are increasing their offering of gluten-free, lactose-free and cholesterol-free products. Around 40 percent of the population is lactose-intolerant to some extent, and Tirolez is the only dairy company in the country catering to this demand, with a range of lactose-free cheeses that include mozzarella, cottage and Minas Fresca (Brazilian cheese).

HUNGARY

SNACKI&GO, SAGA As a unique product in the Hungarian market, Sága’s Snacki&Go mini turkey wieners are available in two variants, smoked and smoked cheese, both sold in a plastic cup. They fit perfectly in the convenient food-to-go category, offering an excellent alternative to savoury or sweet snacks. The plastic cup packaging allows the single-portion wiener to be eaten cold or heated in a microwave.

TOUS ANTIGASPI, CARREFOUR As France annually throws away nine million tonnes of still consumable food products, French retailers have recently taken action by selling products with visual defects. Giant chain Carrefour and Le Collectif des Gueules Cassées have launched a new brand called ‘Tous Antigaspi’ (with ‘gaspi’ being short for gaspillage, meaning ‘waste’), which started selling ‘ugly’ fruit and vegetables at a 30 percent lower price. Last February, the supermarket company released a new range of ugly cereals and invited all of its suppliers to join this initiative. ‘Tous Antigaspi’ might soon be exported to seventy more countries.

USA

ROCKIT APPLE, CHELAN FRESH More American consumers are incorporating fresh produce into their daily meal routines and, as a result, are looking for convenient on-the-go produce snacks. Chelan Fresh’s Rockit Apple was grown to be the perfect snack size. It is sweet with a snap of tart and crunchy and has a soft core that can be eaten. The apple was first grown in New Zealand by the Havelock North Fruit Company. Chelan Fresh secured the distribution rights to produce it in the Pacific Northwest apple-growing region of Washington State, and the first U.S. harvest of the Rockit was in 2015. It is available in a recyclable three- and four-pack tube, which easily fits in a school bag, car cup holder, baby stroller cup holder or on a desk. For NZ enquiries call +64 6 878 4556 August 2016

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salesmerchandising&marketing CHAINS WANT PROACTIVITY AND ENGAGEMENT

As food and beverage manufacturers know all too well, the battle for shelf space can be fierce and hard-fought, and an increasing number of NZ companies are now keen to outsource this expensive and time-consuming task. That’s when sales & merchandinsing agencies step in, taking care of that much-needed relationship between retailers and suppliers.

Steve Mills

According to Steve Mills, Countdown’s merchandise manager of grocery food and beverages, SMAs can be especially valuable to smaller businesses and start-ups. “With their knowledge, contacts and experience, they can help suppliers bring efficiencies to their warehousing and distribution, marketing support and sales, as well as providing on the ground supports, which is why many offshore businesses choose to engage with local agents.” Even though the number of SMAs in our market has remained consistent, Mills added, Countdown is finding that more brands are now using their services. “From our perspective, where possible, we want to work with our suppliers directly. However, we’re supporting of any added value SMAs can bring to our suppliers and customers,” he told SupermarketNews. As part of this support, the supermarket chain regularly keeps both suppliers and SMAs updated on its needs and challenges.

For David Stewart, newly-appointed general manager of merchandise for Foodstuffs North Island, SMAs have a significant and complex role and are compelled to deliver on multiple levels such as market analysis, promotions, key account services and store contact. “They must do this at least as well as a supplier who maintains a direct relationship, and given they typically represent smaller brands, the way they communicate each product’s unique value to shoppers needs to be even more finely honed,” Stewart told us. From SMAs, Foodstuffs expects a fundamental understanding of its own business and model. “It’s important that they are easy to connect with and able to provide the stock and information we need in a timely manner. We also like to see NPD that’s growth-focused, not just ‘me too’ replication.”

David Stewart

In other words, SMAs must deliver what’s needed when it’s needed through clear, concise communication and thorough engagement. “This also means providing support that assists stores and drives sales, like coming to us with innovative and effective promo ideas,” he said. “We like to see a solution-focused approach to solving any issues that arise, as opposed to dodging blame and shifting responsibility.” n

WITH HEART AND EXPERTISE

Simon Rangihaeata

Tony Trilford

Established in 1996 by founder Tony Trilford, Rothford has developed a strong focus of excellence in field representation, achieved thanks to a competent FMCG sales and merchandising team of 70 members across the country. To provide clients with maximum market vision and clarity, the company includes customer support and telesales personnel at HO level, using an integrated sales support and reporting system that is linked directly to field staff at store level. Well respected and trusted in the industry, with over 20 years’ experience in FMCG, general manager Simon Rangihaeata is one of the pillars of the management team. Rothford has also invested in developing their teams of sales and merchandising staff around NZ, equipping each member with the Opmetrix

Sales Management and Reporting IT platform. This enables real-time order entry, reporting and analytics to optimise growth and better manage sales coverage. “Our team is passionate about growing sales and providing the best solutions for problems and issues that occur in our everchanging market,” said Trilford. “We have built an impressive track record in client sales growth over the years with many of our customers, and whilst we have no aspirations to be the biggest SMA in New Zealand, we simply aim to be the best.” From administrations and telesales to Information & Technology Systems or Finance & HR, Rothford works close with its clients to understand their immediate and longerterm goals, always driven by the company’s HEART values—honesty, enthusiasm, accountability, reliability and tenacity. n

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

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

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www.crossmark.co.nz

Target Growth

With over 25 years of experience in NZ, CROSSMARK combines a top performing management team with specialist, results focused teams for All banners in Grocery, Pharmacy, Route and Mass channels. CROSSMARK are uncompromising in driving growth for the brands we represent. CROSSMARK offer a flexible approach to the services you can choose from. • FULL WHARF TO SHELF • KEY ACCOUNT MANAGEMENT • FIELD SALES • FIELD MERCHANDISING • SURGE & SPEED TO MARKET

For further details, contact Grant Leach on 021 996 638 or grant.leach@crossmark.co.nz


salesmerchandising&marketing

TAILORED SOLUTION GETTING PRODUCTS ON SHELF FOR EVERY NEED

Based in Takapuna, Auckland, Crossmark has over 30 years of experience as a leading SMA in New Zealand and also operates in Australia, USA and Canada. The company provides full nationwide coverage in grocery, route, oils, pharmacy, hardware and mass retailers, with a team Grant Leach of more than 500 staff. “We offer customers three fundamental team skills set options, enabling them to purchase the service that best fits their needs and maximises the effectiveness of their budget,” said Grant Leach, managing director, Crossmark Asia Pacific. Whatever the trading environment you are targeting, the company has it covered, offering senior territory managers for Pak’nSave and New World, as well as a sales assist team that loves persuading and influencing in the likes of Countdown, TWL and service stations. In addition to these two teams, stock

replenishment and display building merchandisers are also available. According to Leach, there is an increased appetite to outsourcing of both sales and merchandising services by many of the larger manufacturers. “In the past, this option wasn’t seen as preferable due to some unreliable operators that had tarnished the SMA’s reputation, but I believe this has mostly changed,” he said. “Any good SMA worth its weight in salt will have very robust systems, processes and reporting that are on par, if not ahead, of many manufacturers, and will contractually be held accountable to mutually agreed KPIs.” KPIs should be no different to those that the manufacturers would hold their own sales team to, including GSV growth, share of shelf and distribution. To ensure that all specific needs are met, Crossmark has developed a bespoke solution. “One of our unique offers is a true ‘pick and mix’ option, where customers can select all or just part of the service offers, ranging from comprehensive wharf to shelf solution, key account management, sales and merchandising.” For more information, confidentially contact Grant Leach on 021 996 638. n

Founded 20 years ago, Achiever Merchandising & Sales Support team now proudly number in excess of 120 passionate individuals and provide professional viable solutions on a range of merchandising and sales support services to their client base who require professional shelf management, ensuring effective stock pressure combining on shelf strong and consistent brand profiling. “We have a commitment to provide exceptional service and quality through dedicated staff and management who actively work in-store with their team to achieve industry excellence in merchandising,” said Peter Erceg, general manager of Achiever. Achiever’s experienced team are in key stores up to seven days a week. “We understand that at the heart of our business are our people and their skills as the competitive edge in the competitive market that we operate in, as we focus purely on merchandising niche.” The company has built a loyal and

dedicated workforce, ensuring that its customers have their requirements fulfilled and implemented successfully in-store and on time. After all, investing in advertising and development is not enough when products are not on the shelf or display. “We all have the same goal, getting products into consumers’ hands,” said Erceg. As clients seek both effectiveness and efficiency goals, Achiever has recognised that the need to maximise ‘speed to market’ is a necessity whether this is ongoing merchandising, cover at urgent short notice or longer lengths of time. “This is what differentiates us: we understand that ‘the show has to go on’, and support in the trade is paramount to sales success.” Achiever also offers real-time online reporting and executes other specific marketing initiatives such as category relays, compliance checks and display builds. For more information, contact Peter on 09 638 9277. n

KML RETAIL MANAGEMENT SERVICES FMCG SALES SPECIALISTS

www.kml.net.nz

Contact: ANDREW CLYNE

021 356 971 or andrew.clyne@kml.net.nz

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Ph: (09) 638 9277 Fax: (09) 638 9275 Mobile: 021 224 7051 Email: peter@achiever.net.nz


PROUD OF CUSTOMERS’ GROWTH Geoff Cassin and Sheree CassinThompson launched Selling Solutions in 2011 as a brokering service for premium FMCG brands. Prior to this establishment both had built successful careers, progressing to executive level within the NZ’s supermarket industry. Geoff has worked at Unicharm NZ as national business manager, at Kellogg’s as national sales manager, and Nestlé as field sales manager. On her part, Sheree has held roles as national trading manager retail of Pernod Ricard NZ, general manager sales (domestic and international) of Charlies Group Ltd, and national sales manager of Fonterra Tip Top Ice Cream. The Selling Solutions’ team is made up of 23 sales staff who make 1300 calls to supermarkets and Bunnings each month, and their head office team can count on its excellent relationships, skills and a combined 70 years of industry experience. All clients’ key contact is either Geoff or Sheree who, as business owners, have a greater commitment to the success of the clients’ brands than an employee. “This provides consistency and understanding of the client’s objectives

and challenges,” they said. “We also provide business support, analysis, track financial performance of brands and we assist clients with company and brand growth strategies utilising our extensive experience from corporate backgrounds.” Once the objectives are set, from a brand level down to individual stores, these are electronically communicated to the field team so that outcomes and recommendations can be promptly reported back to clients. “We are proud of the growth achieved by our customers over the last five years, and that we have worked with most of our brands for over three years. These successful relationship management skills are also reflected in our internal team with high staff retention, which has driven growth for our brands and successful relationships at a store level.”

UNIQUE ON THE MARKET Grocery Partners is New Zealand’s premier Gold Standard third party SMA, appealing to those manufacturers who want to have their own dedicated sales service without the associated costs. Particularly suited for organisations that have a sales revenue of more than $30 million, Grocery Partners is unique on the market as it will only ever have two to three manufacturers to whom they offer a premium sales service. Its pointof-difference lies in the ability to deliver unprecedented capability, focus and flexibility while saving customers significant amounts of money.

As a wholly-owned subsidiary of Crossmark, Grocery Partners gets the benefit of their bestin-class systems and reporting, yet is separate in every other respect, including different offices, management, territory managers and merchandisers. The company is currently servicing an iconic manufacturer and now, with the GPL team having delivered exceptional growth in all key metrics, discussions are invited from a potential second manufacturer interested in gaining all the upside without any downside. Confidentially contact Grant Leach on 021 996 638. n

New Zealand owned and operated.

At Selling Solutions you are guaranteed personal service from the business owners. We work direct with clients, providing business support, analysis, tracking and growth strategies. PROUDLY REPRESENTING: • K9 Natural • Premium Beverages • Avocado Oil Grove • • Pure Delish • Chef Series • Loaf Products • • Tomorrow’s Meals •

Selling Solutions

19 Como Street, Level 2 BDO Tower, Takapuna, Auckland email: sheree@sellingsolutions.co.nz or geoff.cassin@sellingsolutions.co.nz Ph: 09 486 4597 www.sellingsolutions.co.nz

Established sales and marketing company focused on consumer products.

what we OFEER : • Sales representation • Merchandising support • Account management • Product presentation • Promotional compliance • Operating NZ wide • Experienced sales team with a solid track record

u Let us show yeocan do! what w For more information contact us on:

09 415 2500 • enquiries@csbrokers.co.nz 021 575 747 • stephenh@csbrokers.co.nz August 2016

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BEST WAY TO OPTIMISE PERFORMANCE

Stephen Hay

CS Brokers has been around the grocery business for 14 years now with a key focus on brand management, key account management, territory management and merchandising and distribution (warehousing). The company represents such brands as Quilton, Earthcare, Savers, Annie’s, Kea Cookies, Findlay’s, Kiwiscreen, Nairn’s,

Balconi and Turci, to name a few. For many years, CS Brokers has used its own in-house reporting system; however, the company has decided the best way forward is to outsource this function through Opmetrix (CRM-Customer Relations Management), which is a cloud-based solution specifically designed for mobile sales and merchandising teams. “We are looking forward to Opmetrix improving our reporting and a more efficient use of the territory managers’ time,” said Stephen Hay, director, CS Brokers. “So, if you are looking for a team that can ‘add value to your business, let us show you what we can do.” n

MOVING AT CUSTOMER SPEED According to research from RSR (Retail Systems Research), retailers are planning a massive change to their merchandising systems, in order to overcome two primary challenges: their inability to understand consumer preferences and, as a consequence, their difficulty in identifying new ideas and innovating quickly. For grocery retailers, the hurdles are even more basic: too many out of stocks, too many promotions, and an uninspiring or nondifferentiated product selection. “The days of ‘one size fits all customers’ are clearly coming to an end, and successful retailers are those offering more local product offerings and easy-to-shop shelf layouts. This strategy creates a more focused and relevant experience for customers and, at the same time, helps achieve sales and profitability goals,” said Matt Robinson, product marketing director, Symphony Gold. “Meeting the needs of consumers in an age when more data is available than ever before at the same time that consumer

expectations are rapidly being reshaped by digital engagement is a very tough proposition. Every part of the retail organisation and its supplier community is feeling the impact, and space and ranging management are not immune.” Retailers need to find new ways to engage customers in stores, Robinson added, ensuring they can always find the right product, in the right place, at the right time. To plan at a more granular level, retailers need more granular information about the stores themselves (i.e. the peculiarity of each store’s layout), as well as detailed customer information that includes transactions, demographics and even pretransactional data coming from digitally-enabled behaviours. This way, customers are profiled long before they even get to a store. For more information, visit www.eyc. com and download the complimentary white paper ‘Moving at the Speed of the Customer, Innovations in Assortment and Space Management’. n

We’ve hatched the gold standard for SMAs If you want a no compromise, Dedicated Sales and Merchandising service without the associated costs, it is now available with Grocery Partners. Grocery Partners is the new Gold Standard in SMAs. The sales team at Grocery Partners is of the highest calibre, having consistently delivered exceptional results in this highly competitive market. Grocery Partners provides nationwide sales and merchandising coverage in All Grocery banners, supported by the Best in Class reporting platform and management.

When only the best will do, confidentially contact Grant Leach on 021 996 638.

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salesmerchandising&marketing

A SMOOTH TRANSITION

Implementing a new mobile solution to your field team can be a daunting task. We spoke with Acorn Group regional business manager Deane Cosgrove to see how the team has survived the first 14 days since switching to the Opmetrix CG Mobile platform. “It’s surprisingly very good. I’d used various systems in other companies and this is very user friendly. It’s been pretty smooth sailing. You don’t have to be a rocket scientist to work your way around it.” Of particular interest is the change to business processes. Deane has always been quite structured with the way he works, but in 14 days he has already identified some gaps. “The app’s built-in Journey Plan has helped me identify a couple

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of neglected stores. By allocating time each month we can ensure full coverage, which can be point of difference for Acorn Group in the trade.” From an account management perspective, data is at your fingertips. “We didn’t have historic information on distribution and what is ranged in each store. We now have a lot more visibility in the field. Information is power.” A feature he particularly liked was the ability to add tasks and objectives to a store. “It’s easy to go into a call and forget the odd thing – it’s a great little prompt.” Change management is important, and for Deane the transition to using Opmetrix has been smooth. “The training process was very thorough and in fact exceptional. The key was each team member was taken through at their own pace.” We asked Deane if he had any advice for companies that were considering the move to mobile technology. “Have confidence with it, it can help you grow your business.” n

OWNED

OUTSOURCING MODEL ON THE RISE The NZFGC Sales & Merchandising Agency Working Group (SMA) comprises FGC member companies who provide an outsource solution to brand owners and manufacturers, both locally and internationally. Outsourcing has gained in popularity, with many members reporting they have seen a steady increase in enquiries over the last 12-18 months, now reaching unprecedented numbers. Internationally, the outsourcing model is extremely common, with well over 50 percent of sales in the US attributed to SMAs and over 25 percent in Australia. In New Zealand, the current estimate is 12 percent across our key grocery retailers. “With increasing pressure to reduce costs, improve service levels and service a retailer environment that is becoming further fragmented, companies are partnering with SMAs to support their success at head office, store level and across the supply chain,” said Rachel Clayton, head of client development, Gaulter Russell / Numero. “SMAs are quite often able to reach markets faster and more effectively through the efficiencies gained in reaching critical mass, often difficult with NZ’s geographical spread.” International outsourcing reports

Rachel Clayton

have identified two key drivers for outsourcing; improvement in cost level or achieving cost reductions, and efficiency improvements. Many SMAs offer a variety of solutions from full service – where stock is owned by the SMA and all warehousing, sales and distribution are the responsibility of the SMA – to ‘unbundled’ solutions. Unbundled can include key account/head office representation, store-level sales or merchandising across a variety of


THE BENEFITS

channels, retailers and categories. Becoming popular are clients’ • Field reporting technology In addition, ad-hoc solutionsvia smart device segmenting regions or product can meet clients’ needs for speed to portfolios, outsourcing those secondary • One of New Zealand’s largest sales/merchandising resources market execution (NPD launches, sectors of their business therefore • Fully integrated POS activation & merchandising implementation activation of campaigns), relay or recall allowing them to focus on their core area support, sampling/demonstrations and & retailer of expertise. • Significant multi-channel coverage compliance monitoring. “The SMA Working Group has • Over 25 years of experience “Many SMAs have recognised the high engagement with many of NZ’s • Providing suppliers to flex retailers, the resource pool need to support clients reach retail the abilityleading and we aimas torequired continue environments that may be considered developing our relationships across regionally challenging or contributing Callthe orretailer Email landscape. As a working a low ROI proportionally; speciality group, we are able to leverage the grocers, Four Square, health food, support of all members and the FGC to Nixon Chris Hood pharmacy, foodserviceGavin or even rural further develop outsourcing within the gavin@thehubnz.co.nz retailers,” said Clayton. marketplace.” nchris@thehubnz.co.nz 021 277 0269

Sales Merchandising & Campaign Activation Specialist

021 94 94 98

NZ Owned & Focused

FIT FOR AN EVERCHANGING ENVIRONMENT

YOU NAME THE TASK, WE CAN ACTION IT! Sales Merchandising

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POS Installation & Management

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With a staff count of more than THE TASK, retailer while havingACTION a resource pool YOU NAME WE CAN IT!as 320 people spread throughout New large as a major multinational to call Zealand, The Hub Retail Solutions on to support all their retail resource Sales POS Installation specialises in point-of-presence needs.” Merchandising & Management marketing to help brands improve What differentiates The Hub from distribution, enhance retail compliance other companies operating in the same and reduce costs. space is its ability to combine this The company has two integrated solution, managing all the complementary trading parts. On POS requirements. the one sideSpeed is ‘The Hub’, a POS & “We work with strong staff buyto Market Display Building fulfilment operation NPD Cut that In manages in, and we are always looking at the a number of company’s POS/ le rapidly changing retail sector to make Display material, as well as product sure D aour y service meets the needs of our management that supports their brand owners within those retailers. ongoing supply to a number of route/ Being a privately-owned NZ business, oil retail stores. we can adapt pretty quickly to an everCompliance On the other is ‘Instore Sales changing retail environment.” Relays Audits Services’, their Merchandising division, The company has been focusing which has been operating in the retail on giving brand owners a view of space for well over 25 years. what their brands are achieving in “The two business parts offer the retailers. With that in mind, they brand owners a fully integrated recently have been moving their entire POS fulfilment pick pack through merchandise workforce onto the latest to execution within the retail stores, Samsung tablets, supporting their giving our clients a seamless one stop propriety software platforms to collect activation solution,” said Gavin Nixon, information from the field. director and owner of The Hub Retail Over the last four years, the business Solutions. has increased its size from just under The team manages brands in 190 staff to over 300 staff today, as a any retailer across all retail sectors, testimony to the fact that a number offering a service that comprises of of companies now see the benefit merchandising, POS management of outsourcing the merchandising & activation, display building, relay and activation needs to a specialist implementation, audits, in-store media in this area that is only focused on and category management. those components. “We don’t see this “Our business is very focused on the trend changing, so given we have had merchandising/activation solution only, to more than double the size of the which means we are not diverted in our organisation, we feel we are more than focus into the high level selling space,” capable of growing our own business said Nixon. “This allows brand owners to accommodate that expansion going to have a direct relationship with the forward.” n

Dept S

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Hardware

THE BENEFITS

Sales

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

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

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

August 2016

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salesmerchandising&marketing

THE ART OF IN-STORE DEMONSTRATIONS clients with affordable access to a dedicated demonstration team that are professionally trained and use effective consumer communication techniques. As Kenny stressed, demonstrations should not be conducted by nonengaged people offering free food handouts. “To be an effective tool for the store and the brand owner, the demonstrator needs to clearly communicate all the benefits of the product and, most importantly, entice the consumer to purchase the product.” n

Liz Brash

With the recent appointment of Liz Brash as Alliance Marketing’s national merchandising and demonstration team manager, the company has now launched its new In-store Demonstration Team. The addition is set to reinforce Alliance’s place as a leading innovative service provider in the SMA space. Brash, who comes from a successful FMCG management career at Storelink and Malcove, joined Alliance a few weeks ago and has been busy recruiting and training additional merchandisers ever since. According to managing director Paul Kenny, with this expansion the company aims to provide its

SCALE AND EXPERIENCE DRIVE RESULTS

A large workforce is required to provide retailers and suppliers with expected store level service. With a territory management team of ten members and 21 field managers who support its over 390 merchandisers, Storelink has the necessary scale and experience to execute brand growth strategies in the market. The company has continued to invest in its sales business and is now proud to manage key account relationships for five of its partners. Additionally, Storelink is excited to announce that it recently formalised a merchandising and sales partnership

PROFESSIONALS WITH A PASSION TO SUCCEED.

100% NZ owned, Storelink is a leader in sales and merchandising with over 350 people based from Kaitaia to Invercargill. It’s all about Your Brands and Our People.

• Targeted individualised service • Our core business is FMCG Sales, Merchandising and Distribution and now fully supported by our new Instore Demonstration Division.

Take action now –

without action even the best ideas are worthless. Don’t do it alone, partner with us the right choice for a positive change in direction

For more information on how we can grow your business contact PAUL KENNY on 09 263 9466 Mob: 021 986 121 or pkenny@alliancemarketing.co.nz

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with Pacific Brands, a company famous for marketing iconic brands including Bonds, Sheridan, Tontine, Berlei, Jockey and Voodoo. The partnership provides extensive field sales coverage improving Pacific Brands national sales call frequency. Storelink sales also recently teamed up with the Family Herb Company in the upper North Island, selling a fresh herb and micro herb range across Foodstuffs stores. “It’s really pleasing to see the results of investment in additional roles and capability,” said Tony Puppyn, business manager sales, Storelink. “Philippa Griffith, our marketing and client manager, has added tremendous value in driving a more integrated client approach, which has resulted in delivering much more relevant activity.” To continue its momentum, Storelink aims to keep on attracting and retaining the best talent within the current industry talent vacuum. “We have also reorganised our field sales team to ensure we can execute activity with excellence, and deliver against client and customer expectations.” n

Contact: ANGIE SMITH Business Manager for Sales & Merchandising 09 475 9039 or email: enquiries@storelink.co.nz

PRODUCT SALES

MERCHANDISING

INVENTORY MANAGEMENT


INVESTMENT IN QUALITY PERSONNEL

Vicki Hammond

Alliance Marketing has added strength in resource by appointing Vicki Hammond as its national sales manager. She brings to the business a wealth of experience in both New Zealand and Australia, working for companies such as Nestlé Purina as well as in HR for a major IGA retail chain. “Her exposure to both supplier and retailer perspectives, combined with forged relationships within the NZ retail market, provides an optimal platform for Alliance to continue their growth trajectory,” said sales director Rob Kitson, adding that the ever-evolving NZ market means companies cannot rest on their laurels, as they require continued innovation in thinking, planning and personnel. n

Brands in decline

CREATIVE STRATEGIES AT YOUR SERVICE FMCG Consulting Ltd. is a consulting and technical training practice focused on assisting consumer product organisations to achieve step-changing growth in sales, market share and profitability through insightful analysis and creative strategies. To help accelerate a consumer product business, the company works on three different areas of expertise. First of all, Consumer Marketing and Brand Management, which includes insight mining, documenting a brand strategy, evaluating and realigning brand investments to drive growth, and a comprehensive pricing strategy that is critical, with over 50 percent of NZ grocery volume sold on promotion. As a second important focus, Category Management and Trade Marketing involves creating a comprehensive category review, which can positively influence a brand’s ranging/listing and distribution, and documenting detailed trade marketing guidelines that ensure trade spend is working to grow your business by design. Technical Training is a third focal point. The company’s global training product FMCG Academy can create customised training programs or videos.

A sample of fundamental skills training videos is freely available at www.fmcgconsulting. co.nz, as well as on FMCG Consulting’s global YouTube channel. These free micro videos offer a combination of academic and practical skills built over 20 years of experience, with topics such as “How to analyse a category?”, “How to make a Product P&L?” and “How to write a brand positioning statement?”, just to name a few. “We work on a project or retainer basis. Our retainers are affordable and provide great commercial value with expert access on the phone, in person and with monthly, quarterly or six monthly output and reviews based on your business needs,” said Vikram Khanna, director, FMCG Consulting NZ. n

Growing but need more

Losing market share

Want to be #1

Advertising ineffective

Launch new brands/products

Trade spend rising

All of the above

New trade marketing guidelines

Need winning category reviews

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salesmerchandising&marketing

KEEPING IT SIMPLE

Tasti may be an iconic Kiwi brand, but nothing stays still for long in the dynamic world of consumer snacks. One the most powerful recent trends has been the growth of ‘raw’ food offerings in snack form, and Tasti’s two latest launches tap right into that groove. New ‘Smooshed’ raw wholefood balls and the ‘Made Simple’ range of bars are the result. A key challenge, according to Tasti’s senior brand manager, Maja Szarmach, was to ensure consumers understand the raw product proposition. “Alongside the universal need to achieve standout on shelf, peoplepaths.pdf had black_FMCG advert_art

to instantly appreciate the products’ qualities. Brother Design’s work here was pivotal, with pack designs and photography that make an unmistakable promise of a raw food product.” Brother and Tasti have a long history together, including a relaunch of the brand identity a few years back. As the category leader in wrapped bars, they have a close understanding of what it takes to make a product mainstream – part of the plan for these new launches. “This might be our first foray into the1 health and wellness 23/06/16 8:36 amsub-category,”

C

Szarmach said. “But our assessment is that the sector will soon achieve mainstream status, and Smooshed and Made Simple will play a part in that.” As will the pack design, according to Brother Design’s design director, Debbie Hyde. “The designs have an integrity and simplicity that mirror the raw nature of the products. The ingredients themselves, quite literally, tell the story.” If initial responses are anything to go by (Szarmach described the feedback on Facebook as fantastic), these two new ranges are set to make a stir in the snack food category. n

“Brother Design’s work here was pivotal, with pack designs and photography that make an unmistakable promise of a raw food product.”

FIXING PR FAILS

M

Y

“We have never met a PR crisis we couldn’t fix,” said BlacklandPR director Nick Gowland. The company specialises in the PR problems that bedevil companies in the FMCG industry. It has kept clients’ reputations intact in the face of challenges such as product recalls, customer complaints, staff misconduct and activist criticism. Gowland said BlacklandPR combines common sense and modern psychology to help organisations act and talk their way out of problems. “Companies get spooked by being discussed in public, and the intense criticism that accompanies it. We all want to be liked, so we hate negative attention. That desperation leads to a poor analysis of the problem, and poor judgements,” he said. “Our clear

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thinking helps clients win by using words and actions astutely chosen for their factual and emotive power.” According to Gowland, companies survive a modern PR disaster by staying focussed on the interests of the audience that matters most, usually customers. “There’s a big difference between criticised in public, and being criticised by the public. Usually, the problem is only the first one. The silent majority need to hear something different than companies give them.” He said the answer is ‘real language, for real people’. “Under even the slightest pressure, companies usually talk nonsense – jargon and empty phrases. To persuade people, you have to sound and act like a normal person. In a PR crisis, we all need guidance to act and sound normal.” n


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salesmerchandising&marketing

POINT-OF-SALE AT ITS BEST

Baseline is a trusted NZ family business established over 30 years ago by Eric Thompson, who started with one offset print machine and a unique idea of bringing quality offset print solutions on-time and to a high standard to the print market. Thirty years on, Baseline is in the capable hands of his daughter Andrea Thompson, General Manager of the company. “Some industries tools of trade rarely change. Think of plumbers or electricians, for example. The exciting aspect of our industry is constant innovation and evolution, which means we always need to be aware of what’s coming

next, especially in the POS/FMCG sectors,” she said. Over the last year, following a logical rebrand to a creative print studio, Andrea has changed the way in which the Baseline offering is seen by their current clients, but also those that have always thought of them as ‘just a digital print company’. “We listened to what the market wanted and this has been a logical business step. Just as my father did, we continue our evolution. Manufacturing everything here and having national coverage has given us even more of an edge.” According to Gavin Chong, Group

Account Manager, another point-ofdifference lies in Baseline’s dedicated product development specialists, who thrive on offering bespoke solutions. “Having this on-tap and at our fingertips is a major asset, that very few companies can provide,” said Chong. “We are able to present any proposed POS solution in 3D, a handy tool that allows our company to produce exciting and innovative solutions for retail.” To find out how you can create unique point-of-sale for you and your brands, contact Gavin Chong on 021 276 1763 or 0800 BASELINE. n

We listened to what the market wanted and this has been a logical business step. Just as my father did, we continue our evolution. Manufacturing everything here and having national coverage has given us even more of an edge.

BASELINE® Creative Print Studio Anything that is to be visually exciting and on brand needs to be bespoke. With over 30 years' experience in the industry, Baseline can offer one-on-one consultancy, design, prototyping and production for all your point of sale display requirements.

Call Gavin Chong today to discuss your next bespoke project. M: 021 276 1763 E: gavin.chong@baseline.co.nz BASELINE.CO.NZ 0800 BASELINE

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Have we really reached the point as a society that we need to be absolutely prescriptive and paternalistic about everything because common sense and personal responsibility are forgotten concepts? It is usually around this point that the pendulum starts to swing back again – when the actions of a vocal minority become so out of step with societal norms that the majority start to push back. We’re not there yet but prediction number three is that we aren’t far off.. just look across the ditch at Sydney. A couple of ridiculous local alcohol policies (such as if the West Coast Territorial Authorities did end up developing individual LAPS or depending on where Auckland finally lands..) will accelerate this greatly.

FOUR CURRENT TRENDS IN ALCOHOL OUTLOOK I am moving on from DB next month to another role within Heineken so this is my last column. The audible gasps from my three dedicated readers are deafening. So, like all good series, I’ll go out with an omnibus encapsulating the themes dearest to my heart in this space and where I think they are headed in the future.

CIDER WILL CONTINUE TO GROW. Cider’s growth in NZ has been phenomenal. After being added to the CPI basket of goods in 2014 (a sure sign of category success), it was the fastest growing food and beverage category for exports in 2015 with a 50% compound annual growth rate between 2004 and 2014 (beating even infant formula which had a CAGR of 45%) (MBIE: Investor’s Guide to the New Zealand Food and Beverage Industry 2015). After tripling the category size in its first four years, domestic growth has now slowed to more moderate rates. Globally, cider continues to grow as well. There is now great variety in flavours and styles and markets are being cracked well outside the traditional Anglo-Saxon stronghold, with NZ and other international ciders being sold in Western and Eastern Europe as well as Latin America. Cider continues to represent huge potential for NZ. Our access to amazing fruit and reputation as a high quality wine producer, places us in good stead for NZ to be as famous for cider as it is for Sauvignon Blanc. My first prediction is that this will continue, and we will deliver on this promise, but the Ministry for Primary

Industries needs to catch up. As often written about in this column, there are shades of grey in the Food Standards Code for what constitutes a cider and a fruit wine. MPI have talked about guidance but nothing of substance has been released. In the absence of this, the Fruit Wine and Cider Makers Association have developed their own guidance in this space but there needs to be better cooperation between MPI, producers and retailers, that both reflects this enormous growth potential and cidermaking techniques that have been in existence in NZ before we really even had a cider category. With a strong and transparent regulatory framework that encourages innovation, NZ cider could easily take on the world, and win.

AS WILL CRAFT. BUT NOT AS YOU KNOW IT Craft beer is another undoubted success story, however you choose to define it. What is becoming clearer though is a shift from “PR brews” – wild and wacky beers to get attention, to consistently excellent beer that is more drinkable. No surprise that in even the most experimental craft bars, the bulk of taps and sales still come from pale ales, pilsners and lagers. As mentioned last month, pack sizes are starting to shift from single-bottle to multi-pack as brewers who are serious about surviving start to pay more attention to building loyal consumers, as

HEALTH AND WELLBEING COMES TO ALCOHOL opposed to being this week’s surprise and delight. Craft is here to stay, but I suspect it will continue its march towards the mainstream, albeit at a premium price point. As NZ reaches 130 operating breweries, the tide will start to turn though and some consolidation occur – the big guys will continue to pick up some of the smaller guys, the halfserious will have to get more serious, and, for some of the hobbyists/ lifestylers, the dream will expire – just like when it was cool to own your own winery.

LICENCING – WHEN WILL THE PENDULUM SWING BACK? A wise man once said to me that politics and alcohol laws swing on a pendulum – they undulate from left to right / laissez-faire to nanny-state. Alcohol laws, particularly concerning licensing, are definitely on the inward swing from the liberalisations of the Sale of Liquor Act. Some of this is called for – there are still far too many failed controlledpurchase operations and irresponsible behaviours going on. However, the way the new laws are (attempting to be) enforced are not helping. Licence objections from some Medical Officers of Health and some Police seem to be either random or as a blanket rule – such as the approach to supermarkets. The absolute case in point has to be the objection to Birthcare’s liquor licence - an Auckland birthing and post-natal stay unit. Yes it is not advisable for new breastfeeding mother’s to drink alcohol, but did they ever consider the new dads and friends and family that may want a celebratory toast? There are concepts in the Sale and Supply of Alcohol Act such as taking into account context (i.e. is harm likely to be done?) and whether good order and amenity are likely to be affected; but these more adaptable concepts are not being used.

Some of the traditional “naughty treats” like ice cream now come in low fat, low sugar, protein-enriched and even dairy-free! The push for “better for me” variants has run from fast food to dairy to juices and next it’s coming to alcohol. Beer is already fat free and typically very low in sugar, but prediction number four is to look for these trends to develop and be better communicated. Low carb beer has been around in NZ for years but is a fraction of the equivalent segment in Australia. Low alcohol beer is another one in this space that has only recently got going (and is dwarfed by the equivalent marketsegment across the ditch). Low carb and low alcohol aren’t going away, but surely it’s only a matter of time before nutritionally-enriched and lifestyle-oriented alternatives hit the mainstream. Overseas there are already examples of “hangover-curing” beer with electrolytes and hash-cookie protein bars are about to come to gyms in parts of the USA. This isn’t restricted to beer –NZ Wine has a Government-sponsored programme to develop more lowalcohol wines and the war on sugar will eventually set its sights on naturally sugar-high wines – anyone seen any recent sales stats on Riesling? Just like craft, these products may start as niche offerings but over time, suspect they will creep into the mainstream. These are just my musings, maybe I’m right, maybe I’m wrong – see you for a protein-enriched, low-carb, electrolyte-boosted, ancient grain Kombucha IPA in 2020 to decide! n

Matt Wilson

Corporate Relations Manager DB Breweries Ltd

Thank you Matt, your contribution to the magazine has been appreciated. Congratulations on your new role, we look forward to you being our fourth dedicated reader. SN team August 2016

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MAKE WAY FOR YOUTH

Now in its eleventh year and completely sponsor-funded, the Bayer Young Viticulturist of the Year competition is about to crown its 2016 winner. The National Final is set to take place in Marlborough on August 23-25, in conjunction with the Bragato Conference, and five regional finalists will be vying for the coveted title. These are their stories.

MARK LANGLANDS Wairarapa

A former professional road cyclist in France, USA and Canada, 29-year-old Langlands became involved in the winemaking industry in 2011 and hasn’t left since. Perseverance is his bigger strength—something he has learnt through the years spent cycling overseas. “Cycling can be lonely at times. Sometimes you spend six hours on the bike by yourself, in the middle of nowhere. This has taught me to be a self-motivated person: if I wanted to succeed, I needed to do the hard work because it would pay off later,” he said. This, of course, is valid for winemaking too. “Being able to produce something as complex and diverse as wine, and tasting that hard work and long hours one, three, five years later, makes it worthwhile.” Langlands is currently studying towards his degree in Wine Science, and his ultimate goal is to own a vineyard, winery and café offering wine and food pairings. “I enjoy cooking and baking, and see this as an experience that would allow people to appreciate the wine more, maybe even wines that haven’t been recognised in New Zealand yet.”

MIKE WINTER Central otago

Winter, 30, is a veteran of this competition, having taken the title of Central Otago Young Viticulturist of the Year for three years in a row; in 2014 he even placed second in the National final. Born and bred in Christchurch, Winter is the youngest of five boys and also a twin. He met his wife Kate when they were 16 and finally married her last January. Together they hope to start a family and their own business within the next couple of years. “We have a few ideas up our sleeves,” he said. “I believe there are some opportunities in packaging and marketing of wine, much of which is based on traditional European approaches and may be due for a shake-up.” Working around the weather, he said, is the hardest part of his job, with frost management being particularly challenging in Central Otago. He sees a very strong future for the NZ wine industry as a whole, driven by an innovative approach that’s based on quality, sustainability and promising, new varieties. “We are still a small producer on the international stage, but with an enthusiastic crop of industry leaders coming through, we will likely see growth and changes that we have not yet dreamt of.”

CAMERON PRICE Hawke’s Bay

This will be Price’s first-ever national final to date, an achievement he is truly proud of. Coming from a family of plumbers, Cameron Price didn’t have wine in his blood, but this has certainly not prevented him from starting a rewarding career at Villa Maria. To achieve this result, he has had some peculiar role models. “As a typical Kiwi boy growing up you can’t go past Christian Cullen or Sean Fitzpatrick, who always seem to have encouraged young men never to give up on their dreams or goals.” In winemaking, despite all the science, climatic variables still dictate the outcome. “We can read weather maps and forecasts as much as we want, but it is Mother Nature we are dealing with on a day to day basis,” he said. “She has that way of giving us a cold spring for budburst and flowering followed by that dreaded rain at fruit set.” As for the industry, Price sees sustainability as a key driver of international competitiveness. “We need to make sure we are aiming for quality over quantity because we know we can’t compete with the wineproducing countries that have the ability to produce bulk wine at half the cost.”

TIM ADAMS Auckland

Adams, 29, grew up in Hamilton with two younger sisters and is now married with two kids. Besides having a good attitude towards learning and a strong initiative, he has also acquired a solid scientific training with a BSc in Physiology, a PGDipSci in Neuroscience and another in Wine Science. In fact, before starting to work in vineyards across New Zealand and Australia, he had been employed in a Biomedical Lab as a haematological tech. As you have probably figured out by now, that strong desire to keep learning and apply this knowledge in the vineyard is one of his greatest strengths. As part of this, Adams looks forward to starting a Masters in Viticulture. “In the future, I would like to take on greater viticulture roles and contribute meaningfully to the New Zealand wine industry, and also be the best husband and dad I can be,” he said. As for the future of the wine sector, Adams believes that worldwide climate change will affect NZ’s grapes, which may result in new regions being established and older ones being abandoned.

BRENTON O’RILEY Marlborough

Happily married and living in Marlborough with his wife Laura, 28-year-old O’Riley grew up in the Manawatu on a dairy farm. After a degree in Viticulture and a degree in Wine Science, he’s now working towards a postgraduate diploma in Business Administration. “My passion is continually growing,” O’Riley said. “I am often known as an ‘ideas man’, thinking of different approaches to some very traditional techniques. I am always interested in exploring a new way of thinking and how we can develop technology to support or make our job more efficient.” Training and good attitude, however, would not have been enough without the support of his wife, who has always encouraged him to get out of his comfort zones and take risks. Twenty years from now, O’Riley sees himself owning a vineyard and helping the next young generation of viticulturists come through into the industry. “The future of the wine sector is looking extremely favourable. We must continue to be competitive internationally, while keeping in mind what got us to where we are now—quality.” n

The beverage market has experienced an explosion of new brands and variants across all sectors. In our special supplement, THE BEVERAGE REPORT we will have market commentary from industry experts on the value of the market, consumer behaviour patterns and consumption trends. WANT TO BOOK A SPOT? Contact felicity@reviewmags.com or call 09 304 0142 ext: 704.

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PIERA MARTELLOZZO WINERY

PIERA MARTELLOZZO

As a family-run business with more than a century’s worth of history, Piera Martellozzo Winery produces elegant and refined wines for both foodservice and retail, renowned all over the world by their quality and stylish packaging. Founded in 1899 in the hamlet of Camposampiero near Padova, the company is now located halfway between Venice and the Dolomites mountain range, in a region—FriuliVenezia Giulia—that is ideal for the cultivation of aromatic grapes due to its ample stony surface. “Wine making is a family tradition; I was born in it. The winery was founded by my grandfather, but it was my father, Mario, that expanded it both in Italy and in foreign markets,” said Piera Martellozzo, who took the reins of the company that now bears her name in 1992, at only 29 years of age. “My grandfather and my father have taught me everything about this industry, and how to produce a good product by respecting the nature and being honest with the people. It was natural for me to carry on these values, as a tribute to them.” In 2001, aiming to create worldclass wines, she decided to relocate the business in the far north-eastern

corner of Italy. The choice has paid off; half of Piera Martellozzo’s production is now destined to foreign markets, mainly USA and Canada, with plans to increase the brand’s global presence. New opportunities seem to be opening up in Asia, especially China and ASEAN countries. “Being an Italian winery we are at Vinitaly in Verona, which is a benchmark all over the world, but we also started working hard on the Asian market,” said Martellozzo. This year, the company attended Vinexpo Hong Kong, Sial China in Shanghai and Seoul International Wines and Spirits Expo. “What we brought back is an important feedback from wine consumers and buyers; as Asia is an emerging market, we have still a lot to learn and are willing to.” Piera Martellozzo Winery is particularly well-known for its sparkling varieties, sold under three different lines: a luxury range coming in coloured handcrafted bottles, Perle di Piera; an elegant and classic line, called 075 Carati; and an organic option, Giade, that launched in 1998 as an Italian-first. “A special mention goes to our Prosecco sparkling wine, which is enjoying a great success all over the world,” Martellozzo said. “Not everyone knows that it can be produced only in Northeastern Italy. Prosecco had the merit of making the world talk about our beautiful region.” As for the company’s still wines, Terre Magre is a variety of intense wines with well-balanced aromas, while the BLU GIOVELLO brand, coming in a unique blue bottle, has been selling well in the US and Canada for the past 20 years. However, Piera does not view the international scene exclusively as a prospective market, but also as a source of inspiration. “I love how French producers deal with wine,” she said. “They fully exploit the potential of the vines. Of course, they have started much before us. They select the best grapes because they have a clear idea of what they want to obtain, so quality is constant and product expectations never disappoint.” From a style point of view, however, Italy remains second to none. An Italian touch is clearly recognisable in Martellozzo’s upcoming new line ‘Composizione di Rosso’, a blend of Merlot, Cabernet Sauvignon and Pignolo that took five years in the making. “We called it ‘Composizione’ because it is a symphony, made from three vineyards with a vision to create the perfect blend,” said Martellozzo. “We only have 7000 bottles; it’s our treasure.” Also unique about this wine is its handmade label, which is cast in brass, chiselled by Italian artisans and applied by hand. “This is a world-first, no other labels have ever been made with this technique. We wanted to let our customers understand at first sight how precious this wine is to us and how much attention we have paid to it. Just like a painting, the effect is both visual and

tactile; when you see the bottle, you instinctively want to touch it.” As for sustainability, the winery pioneered the organic wine industry in Italy with the release of its Giade line nearly twenty years ago. “I have always believed in organic products. Apart from that, we use bottles with less glass whenever we can and, to reduce waste, we filter and reuse the water in our bottling line.” From her father, who successfully managed to expand the business, Martellozzo has learnt that great results can only be achieved through hard work. “This is not just a job; it’s a kind of mission. You must be ready to devote yourself to it every day, working without any profit sometimes,” she said. “Passion is essential.” n

PRIZE RECORD

“This year we received many recognitions. Terre Magre Sauvignon won the gold medal at Concours Mondial du Sauvignon in France, so we have been particularly proud. It also had 91 points at 5 Star Wines competition, which was led by Ian D’Agata during Vinitaly. The 075 Carati Moscato won the gold medal for the second year in a row at the prestigious Mundus Vini. Last but not least, Terre Magre Pinot Grigio was the only Italian Pinot Grigio to receive a medal at Concours Mondial de Bruxelles.”

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storecheck Storecheck is designed to rate each store to a set of criteria and is not a comparison of one store to another but a rating system on how well each store performed against the areas listed. A score of 5 means that the store has met all shopper expectations, grading down to 1 where little or no expectations have been met.

FOUR SQUARE, NGATEA - B 11:30am

Ngatea is a whistle stop and this store was the sole source of groceries. It had great carparking outside the door with strong signage, a good range of products with some merchandising needed, particularly in beverage where there were a number of out of stocks. Overall it was a country store that did well with a good produce section. Again, the shelving in the chilled area had got a bit old but there was good lighting, wide aisles and a friendly countrystyle attention to customers.

COUNTDOWN, PAEROA - B 12:15pm

Despite being well maintained, well stocked and busy, this store struggled under its awkward odd-shaped building and a layout under stress. Its signage was clear and carparking and the exterior trolley bay made access easy. With its bakery unusually at the front door, it was a welcoming and enticing proposition. The lighting was only adequate and the shelving in the chilled area needed replacing. More merchandising attention was needed, particularly in the beverage area, and the checkout was a bit fussy and crowded. The produce section was a standout with great visual appeal. Staff were doing their best with a difficult store layout.

FOUR SQUARE, PAEROA - C 12:30pm

This smaller unit in the middle of the main street strip shopping had clear signage and angle parking outside and when visited was strongly promoting its store birthday. Space constraints meant trolleys were in an off-footpath spot. The interior was well lit and had good aisle width, but overall the store was let down by old equipment particularly in the chilled area. The flooring also needs replacing. The produce was well stocked with good visual appeal, but some out of stocks elsewhere and a bit of merchandising care needed.

NEW WORLD, WAIHI - B 1:00pm

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This was an almost brand-new store back from the main road but offering the latest Foodstuffs design as expected in the city. It had the usual excellent signage and carparking and inside an opportunity to carry the latest displays, lighting and aisle widths. The produce was excellent, well stocked and with visual appeal and, for an inland store, a strong fish counter. This was a clean, fresh store that was clearly popular, although like other country stores suffered some out of stocks and needed some merchandising attention.

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STORE EXTERIOR

4 Square CD 4 Square NW 4 Square CD Ngatea Paeroa Paeroa Waihi Katikati Katikati

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

4

4

3

5

5

5

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

4

4

4

5

5

5

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

4

4

4

5

5

5

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

4

4

4

5

5

5

• Trolley conditions? (5 pts.)

2

4

4

4

2

5

STORE INTERIOR

4 Square CD 4 Square NW 4 Square CD Ngatea Paeroa Paeroa Waihi Katikati Katikati

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

4

5

5

5

4

5

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

3

3

2

4

3

5

• Adequately lighting/heating? (5 pts.)

3

3

3

4

4

4

• Instore signage clear adequate? (5 pts.)

4

4

4

4

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

4

4

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4

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• Was there end of aisle promotions? (5 pts.)

3

3

3

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

2

2

2

4

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STORE LAYOUT

4 Square CD 4 Square NW 4 Square CD Ngatea Paeroa Paeroa Waihi Katikati Katikati

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

4

4

4

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

4

4

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

2

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

5

4

5

5

4

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PRODUCTS

4 Square CD 4 Square NW 4 Square CD Ngatea Paeroa Paeroa Waihi Katikati Katikati

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

5

4

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

3

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• Was all product packaging in good condition?

4

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• Range of general merchandise, newspapers, 4 magazines and cards, condition & complete. (5 pts.)

3

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n/a

n/a

4

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

n/a

4 Square CD 4 Square NW 4 Square CD Ngatea Paeroa Paeroa Waihi Katikati Katikati

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

4 4 3 4 4 5

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

5

4

5

4

4

4

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

5

5

5

5

4

4

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

5 5 4 4 4 4

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

5 5 4 4 3 4

• Checkout area, tidy, merchandised? (5 pts.)

4

3

4

4

4

5


FOUR SQUARE, KATIKATI - C 1:30pm

This was an older Four Square that still had a busy local following that suited a country town. Its trolleys were near their use-by date and some of the shelving, particularly in the chiller section, was in need of replacement. The store had a strong produce area where display care was strong but, in other parts, there were a number of out of stocks and poor merchandising in some aisles. But it was a clean local store with car parking to the door.

FRESH FOOD

4 Square CD 4 Square NW 4 Square CD Ngatea Paeroa Paeroa Waihi Katikati Katikati

• Appeal & layout fresh products, including Produce, Meat, Fish, Deli, Bakery PRODUCE (5 pts.) 5 5 3 4 4 5 FISH (5 pts.)

4 3 4 4 4 5

MEAT (5 pts.)

4 3 4 5 4 5

DELI (5 pts.)

4 4 4 4 4 4

BAKERY (5 pts.)

4 4 3 4 4 5

• Range & stock levels of fresh products including Produce, Meat, Fish, Deli, Bakery

COUNTDOWN KATIKATI - A 2:00am

This small town would have to be pleased with this Countdown that met all the standards of its city cousins. Well placed on the main road with excellent trolley bays and the outstanding idea of trolley collection areas at the end of each car park row. A well-displayed produce section although some out of stocks throughout the store and a bit of merchandising needed. A well-lit store with good ranging, clean aisles and professional displays.

PRODUCE (5 pts.)

5 5 4 4 3 5

FISH (5 pts.)

3 3 4 4 3 5

MEAT (5 pts.)

4 4 4 5 4 5

DELI (5 pts.)

4 4 4 4 3 4

BAKERY (5 pts.)

3 4 3 4 3 5

• Counter staffed to levels compatible with customer numbers

3 4 n/a 4 4 4

• Deli items varied, well stocked, and clean

3

• Gourmet, indulgence or Artisan products

3 5 4 4 3 4

• Overall shopper experience

4 4 4 4 4 5

HOW THEY SCORE?

4

3

4

4

4

4 Square CD 4 Square NW 4 Square CD Ngatea Paeroa Paeroa Waihi Katikati Katikati

Maximum available score: 200 pts 153-B 155-B 146-C 168-B 150-C 179-A TOP SCORE

Connor McClunie

Checkout-operator, Countdown

This year, for the first time, Countdown allowed shoppers to nominate their favourite checkout operators, with the winner heading straight to the ‘Checkout Operator of the Year’ grand final. One could only imagine what came to Connor McClunie’s mind when he found out his name had been singled out as the chosen one. Born and raised in Cambridge with two brothers, two sisters and one half-brother, 16-year-old McClunie is employed part-time at Countdown, 11 hours a week, and occasionally works as front-of- house at his mother’s café, Suburban Kitchen. The rest of the time, he is a year-12 student at Cambridge High School, still standing on the threshold of his future, hanging out with his mates and girlfriend of six months, and dreaming big. “In the short term, I want to be a supervisor at Countdown, but my aim is to become a pilot. I’ve wanted to be one since I was 10 and, after high school, I will try to enrol in a flight school, CTC Aviation,” he said. Meanwhile, he’s studying Tourism, his favourite subject, hoping that might help him fulfil another lifetime goal—travelling the world. In this respect, his mother and her partner are setting a good example: both are currently in Rio, Brazil, where they cater for the NZ rowing team as personal chefs. As for Connor, despite his young age, he is not afraid to roll up his sleeves. Before starting at Countdown, more than a year ago, he used to work at Pizza Hut ‘doing everything customer-related, from answering phones and taking orders to working on the till.’ His willingness to work hard is exactly what prompted shopper Janine Silva to nominate him for the award. “He is a young man with lots of potential, [who]

has been trusted with many roles above his age and nailed them,” she wrote on Countdown’s FB page. As a self-defined ‘personable person’, always armed with a bright smile, McClunie enjoys meeting new people and has no problem getting along with customers. Living in a small town, far from the anonymity of big-city stores, helps too. “It’s a fun place to work. The customers are regulars; you get to build a relationship with them. Sometimes elderly people need assistance at the self-service checkouts, so I help them and teach them what to do,” he said. “All in all, I want to ensure they have an enjoyable time while they do their grocery shopping.” Customers can also be challenging at times, but that doesn’t discourage him. He knows a smile can make a difference, and doesn’t believe technology or statistics will ever overshadow that human-to-human interaction. “I think I have good attention to detail and scan approximately 18 items per minute, but the scan rate doesn’t matter, as long as shoppers are positively engaged. After all, the customer is always right, and being nominated made me realise they do notice how we are at work, and how we treat them.” n August 2016

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For All Ages And Skins

With no parabens, no chemicals and no harsh ingredients, the Goat Skincare range offers a gentle variety of soaps and lotions to suit all skin types. Created with pure and natural ingredients, sustainable palm oil and fresh, permeate-free ethically farmed goat’s milk, this new range is suitable for all ages, including newborns and pregnant women. RRP from $4.99 for the soap bars. Contact your BDM Grange account manager for more information or call 0800 804 711.

Hydration All Day Long

Formulated to penetrate the skin’s surface and deliver its key ingredients deeply, the new Hydro Boost Serum by Neutrogena contains purified hyaluronic acid and olive extract. Thanks to its unique formula, Serums offers a more concentrated hydration while also being light on the skin. Used alone or underneath a moisturiser, it addresses the underlying cause of dryness and absorbs moisture from the air to release it into the skin over time. Neutrogena Hydro Boost Serum is oil-free, alcohol-free and non-comedogenic.

Trusted Supplements For the tenth time, Healtheries was named as one of New Zealand’s most trusted vitamins and supplements brands in the latest Reader’s Digest Trusted Brands survey. The company placed 17 out of total 307 brands surveyed. Established in 1904, Healtheries sells more than 200 products across five categories, with its most popular supplements being magnesium,

Sweet Touch

TAPsPP5881

Mossop’s has been producing top quality honey for nearly 70 years, using traditional methods to ensure the highest standard is delivered, while also keeping a good, old-fashioned friendly service. Since its inception, the business has remained proudly family-owned and operated. Mossop’s latest addition is natruél, a 100 percent natural skincare range that is crafted with a high percentage of UMF® Manuka honey and cold pressed olive oil, providing customers’ skin with more nourishment. The company has also recently released a line-up of UMF10+ Manuka Honey and Propolis lozenges, coming in four flavours: propolis, lemon, cranberry and blackcurrant. They are made using dehydrated honey pressed into a lozenge form, which means the product doesn’t contain added sugar and has a very high honey content, being ideal for the health-conscious consumer and even better for winter wellness.

Soothing And Smoothing Pure Paw Paw ointment saves all kind of skins as it soothes and smoothes. Not only is it the best for chapped or dry lips and skin; it’s also great for dry heels, sunburn, insect bites through to eye shadow primer and cuticle cream. With so many different uses, it’s worth having more than one tube to hand. As well as the familiar Original Paw Paw Ointment, there are also four flavoured variants to suit all ages and tastes. Available at a RRP of $9.99. Contact your BDM Grange account manager for more detail or call 0800 804 711.

Bio-Oil Back on TV ®

Starts 28th August for 4 weeks. Be prepared, stock up with Bio-Oil now! Talk to your BDM Grange Area Manager for more detail and to book display space, or call 0800 804 711. Bio-Oil is New Zealand’s #1 selling scar and stretch mark product.* It is a multi use product that is not affected by seasonal fluctuations so provides year round category growth within skincare. IRI Data, MAT to 4/10/15

*

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fish oil, cold and flu, and the KidsCare range. “We are delighted that the New Zealand public holds Healtheries in such high regard,” said Rachel McKendry, marketing manager, Healtheries Supplement. “Health and wellbeing are so important in people’s lives, and we are very proud of the fact that they recognise and trust Healtheries to meet their needs.”


THE TRUTH ABOUT THE STARS Katherine Rich

Chief Executive NZ Food & Grocery Council

Readers of Supermarket News will have noticed the significant rollout of the Health Star Rating (HSR) labelling system for packaged foods over the past 12 months. There are now more than 1000 products carrying Health Stars, allowing shoppers to make comparisons between products within grocery categories. So far most of the responses to the new information system have been positive, but recently a few commentators have started to share information about the HSR system which is not correct. Former lawyer turned blogger Claire Deeks has been very vocal in attacking the labelling system, and has set up a petition calling on the Government to scrap it. In particular, she feels it is “fundamentally flawed” because it compares food products only within categories, for example breakfast cereals with other breakfast cereals, or dairy products with other dairy products, but not products overall. What she doesn’t understand is that

the HSR system was designed as a tool to help shoppers as they walk down the aisles in the supermarket. That’s why it makes perfect sense to compare products within a given category – because that’s the way people shop. While standing in the breakfast cereal aisle, shoppers want to choose between breakfast cereal products. They aren’t deciding between buying breakfast cereal and dairy. Ms Deeks has also makes comments regarding the Health Star Ratings and sugar content, to create the impression that the system is soft on its approach to sugar. This is simply not true. Experts on how the HSR mathematic formula works are confident that high sugar products are dealt with severely by the system. If something is high in sugar, particularly without any offsetting factors such as fruit, vegetables and fibre, a product will get a low star rating. Ms Deeks has also called for the HSR system to be replaced by sugar labels that show the number of teaspoons of sugar on the front of the pack. But going down that route perpetuates a reductionist approach to food. People eat foods, not single nutrients, and by focusing on just one factor naturally overlooks other food constituents such as fat and salt. Focusing on one constituent at the expense of all others just adds to the confusion for many people. The benefit of Health Star Ratings is that they look at the whole food to help people make healthier choices. The system looks at the overall nutrition the food delivers to people. The aim is to point shoppers to healthier packaged foods with categories so they can see instantly how much energy, salt, fat, and sugar is in a product

“If something is high in sugar, particularly without any offsetting factors such as fruit, vegetables and fibre, a product will get a low star rating.” and make a comparative decision based on that. Not everyone understands nutrition panels, so this quick and easy solution on the front of packs makes it easier to identify more healthy choices. While Ms Deeks is unhappy that the system doesn’t take into account things like what sort of flavours, colours, preservatives or additives are used, these are more about personal preference than ones that affect the nutrition delivered by food. Sure, it’s a government-led initiative but it’s not an attempt to endorse

particular packaged foods. What the government does, through the Ministry of Health’s work, is endorse New Zealand’s Food and Nutrition Guidelines which can be found on the ministry’s website. The guidelines are clear about the recommended servings of fruit, vegetables, protein, grains and dairy. The Food and Grocery Council endorses these guidelines, too. The guidelines provide interested Kiwis with a superior source of dietary advice. n

BEHIND EVERY BUSINESS IS A STORY — AND WE WANT TO HEAR YOURS.

Join other producers and share your story with New Zealand and the world in our new editorial series ‘The Producers’. Hundreds of businesses have already answered our call, sharing their journey, products and future plans. To find out how you can be a part of ‘The Producers’, email Rossella at rossella@reviewmags.com.

August 2016

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Ideal For Sharing

Mentos has introduced multipacks in their two favourite flavours Mint and Fruit. Each multipack contains three Mentos rolls, ideal for sharing or keeping one at home, in the car and at the office. Mentos multipacks offer value to the consumer and increased basket spend to retailers. The shelf-ready or hangsell packaging allows placement in aisles and on checkouts to help increase average weight of purchase. Mentos is brought to you by DKSH New Zealand Limited.

Faster Hydration Smart New Look

New Zealand’s favourite chicken has a fresh new look. With a revitalised, modern design, it will appeal to both cost and quality-conscious consumers, as well as boosting Tegel’s rapid growth in the free range segment. The new look is part of this year’s largest FMCG launch, with a $3.5 million investment to drive value and volume growth across the board led by category and shopper insight. The investment comprises of packaging redesign, product innovation, and extensive ATL & BTL brand support including TV, print, digital, PR and in-store activation. To add value to your shelves, contact your Tegel representative today or call 0800 730 850.

Premium Loose Leaf Organic Tea

Specifically designed by NZ’s leading medical herbalists to address a person’s health challenge, Puraty Health Teas have no additives, preservatives, artificial colours, sugar or gluten added. The company sources the finest and freshest medicinal grade herbs to provide maximum potency; all medicinal herbs are certified organic by BioGro. Puraty Teas are experiencing strong growth, which is primarily driven by customers wanting healthy food options. Detailed information can be found at puraty.com. To contact, please email info@puraty.com.

B-Well Natural Alkaline Water is a high-pH water from the Tuscan Apuan Alps. With a pH of 8.4, B-Well water helps lower acid levels and improves hydration. Alkaline water forms micro-clusters that allow for faster absorption and help keep the body feeling energised. The reduced molecule size also gives B-Well its clean taste and smooth texture. Additionally, the B-Well bottle is made from a lightweight crushable plastic, saving room in the recycling bin. For trade orders, contact Topline Marketing on 09 416 4061.

Made Of (Health) Stars

Shoppers looking to put some excitement back into the school lunch box won’t be disappointed by the new Tasti Smooshed Wholefood Balls. These yummy bite-sized balls provide all the needed nourishment with no added sugar. Sweetened only with dates and ideal for people ‘on the go’, they carry a 4-star rating and come in three variants; Brazen Berry, Mocha Macchiato and Orange Zinger.

Energy Level Booster Auckland-based Scalzo Food Industries has expanded its nut-mix offer with the introduction of three new varieties, packed in re-sealable, self-standing pouches. The Nutters range targets consumers seeking a tasty nut-based snack to top up their energy levels throughout the day, either at home, at work, or whilst on an outdoor adventure. New varieties include Scroggin Scoffers 350 g, a mix of natural and roasted nuts, dried fruit, seeds and dark chocolate chunks; The Nutty Bunch 375 g, roasted and salted mixed nuts; and Tropical Trailblazers 350 g, a mix of roasted and natural nuts with dried fruit.

First-Class Indulgence

Tip Top has released a new flavour into their Top Notch range this winter. A blend of coffee ice cream delicately swirled with a bittersweet choc-coffee sauce and caramelised almond brittle pieces, the new Top Notch Coffee Almond Crunch is the perfect indulgence for Kiwis to curl up on the couch and enjoy as the weather gets colder. Flavour innovation in ice cream such as coffee can help ‘adultise’ the category and fight ice cream seasonality consumption. Recommended retail price is $5.99 for a 480mL tub.

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Like Fresh Fruit

Back Country Cuisine’s Fruit Snacks are ready to eat, without artificial colours, sugar, flavours or preservatives. Made with 100 percent fruit and gluten-free, they are freeze-dried to remove water content while retaining flavours and nutrients, which makes them ideal as a healthy and tasty treat on the run. For orders contact +64 3 216 2001


Market-Leading Snacks

For The Love Of Tams

For its Tamarillo Relish 330 g, NZ Tamarillo Cooperative Ltd has developed a technique specifically designed to extract only the sweetest pulp from the tamarillo fruit, to leave the bitter pith with the skin. An ideal blend of tamarillo, vinegar and spices, this relish can be enjoyed with cheese, meats or salads, or even spread on a pizza base as a sauce. As this wasn’t available in New Zealand, the company also had to design a unique infusion method and construct the necessary equipment to produce its Tamarillo Vinegar Dressing 250 ml, an Italian red wine vinegar infused with tamarillo and slightly sweetened. “To secure a constant supply of tamarillos we formed the NZ Tamarillo Cooperative, which now handles over 350 tonnes per year, approximately 90 percent of the national crop,” said chairman/manager Robin Nitschke. “In this way, we can control the commercialised added value product at both ends of the supply chain.”

For Demon Disciples

Korean Backbone Ingredient

Gochujang (hot pepper taste) adds a sweet fiery flavour to any dish. A great Asian-inspired alternative to other spice pastes that are popular in New Zealand, it can be used as a marinade or in stews, stir-fries and sauces. Sempio makes it the traditional way with only natural ingredients, including red chilli, fermented rice and soybean. The product is available in a convenient 170g re-sealable tub to lock in freshness, allowing it to be used again and again. Also, unlike other Korean-imported gochujang, Sempio’s (imported by Oriental Merchant) offers English labelling with a recipe suggestion and a full-colour display box holding just six units.

Some consumers like following the crowd; some want to be more badass. Demon appeals to consumers who want to be different—tattoos and body piercing, hot chicks that you wouldn’t bring home to meet the parents, ear-splitting rock music, drifting and boy-racers: that’s the Demon Disciple. They’re different and they’re loyal, and now there’s a Zero Sugar version for them. The addition has joined the Demon 500ml RANGE. For more information or to place your order, contact your local KML representative or ring Demon HQ on 0800 767 646.

Dole has launched Fruit & Custard Blueberry, a new addition to its market-leading range of Fruit Snacks. The product contains delicious whole blueberries in a creamy vanilla-blueberry custard, conveniently packaged in plastic bowls (4x123g). With healthy blueberries, mouth-watering taste and no artificial colours or flavours, the whole family can enjoy Dole Fruit & Custard Blueberry as a dessert or afternoon snack. Dole expects sales to match Dole Fruit & Custard Peach 4x123g, the number one selling Fruit Bowl in NZ (Source: Nielsen Scan Data Total Supermarkets MAT to 17/4/16).

Committed To Ethical Farming

Freedom Farms is adding free-range chicken to its product offering, which already includes free-range eggs, bacon, ham and pork. Since its inception, ten years ago, the Aucklandbased company has committed to ethical farming; as a natural consequence, they are now on a mission to encourage farmers to open up their barns. The first Freedom Farms chicken cuts will be available in-store from September, featuring fresh whole birds and tray-packed portions of breast and thigh cuts. All products are sourced from farms that meet strict welfare and environmental standards, catering to consumers who love good food and want to make a difference to animals’ lives. For more information, contact us@freedomfarms.co.nz.

GETTING THE COUNTDOWN NETWORK RIGHT This is my first monthly column for SupermarketNews. I’m looking forward to sharing some of my thoughts about the food and grocery industry in New Zealand and abroad. If you’ve got any feedback, please do get in touch through feedback@countdown.co.nz. Dave Chambers

Managing Director COUNTDOWN

Last month there was plenty of commentary in the local media around Woolworths’ announcement to the Australian Stock Exchange that six Countdown stores would close. When Brad Banducci took up the role of CEO of Woolies, he undertook a full review of the business and some of the outcomes with implications for the market were announced in late July. In New Zealand, I have undertaken our own review since returning, and

we identified six supermarkets that should be closed before the end of their lease terms. We planned to close one store this financial year, Christchurch Rangiora Central, and that’s because there’s a brand new store around the corner, Rangiora East. One store will be closed, pending a replacement. With the other four stores, we will work through the various commercial discussions that need to take place, and make announcements when we have more certainty. It’s not easy to close stores, particularly for our team, however it is a necessary part of running a supermarket business in a really competitive market. As we always do, any team that are affected will have

the opportunity to relocate to nearby stores. There are reasons why we need to close stores from time to time. Sometimes we have stores very close to other stores, because of historical acquisitions, other times we may want to replace an old or unfit store. Essentially, we are always reviewing our network so we are best placed to provide convenient locations for our Countdown customers. Having a network in the right place is also critical for our suppliers. Suppliers rely on us as one of their channels to get products to customers, whether they’re working through a few or all of our stores. We have the largest network of stores

in the country, boosted by an online shopping and click-and-collect business that touches every corner of New Zealand. In that vein, Countdown is continuing to invest in New Zealand, so our network of stores is in the right place, and offers local customers the type of store they need. As two examples, take our new premium store in Ponsonby, and our replacement store on Waiheke. Countdown stores will increasingly reflect the needs of local communities through our segmentation programme, based on in-depth analytics. Over the course of the 2017 financial year, I expect that Countdown will open at least three new stores, and two replacement stores. We also have a record refurbishment programme of our existing stores underway. I anticipate we will invest more than half a billion dollars into New Zealand over the next three years, and by 2020 there will be many more than the 184 Countdown stores we have today. n August 2016

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As we all know, New Zealand is the ultimate natural playground for those with a spirit of adventure, and even more so in the early 1980s, when 27-yearold Eddie Grooten decided to quit a sales job at Mercedes-Benz and play his trump cards on the opposite face of the world.

Eddie Grooten DAD’S PIES

lastword Peter Mitchell Publisher

Couple of upcoming events that tend to top off the year nicely. This month, the Association of Convenience Stores (NZACS) is running its annual Peter Jowett Industry Awards dinner and trade presentation that follows-on from last month’s State of the Industry breakfast, which drew several hundred suppliers and oil channel people. Next up is the Beverage Council’s annual conference at Wairakei, October 4 & 5, with a swag of top speakers and its awards dinner. This is followed up early November by the Food & Grocery Council’s annual conference on the Gold Coast, which also deserves support to hear another array of great speakers. You can’t argue with Donald Trump over building a border wall. The Chinese built one over 2000 years ago and they still don’t have any illegal Mexicans. While it’s great to see the training being given to checkout operators – and most of them are fantastic – we struck a clearly untrained packer the other day at our

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Thus begins the story of Dad’s Pies, which has grown from a small shop in Red Beach to a purpose-built factory that ships pies all around the globe. Grooten fell in love with New Zealand from afar. He was hooked the moment he read about this remote, stunningly beautiful island in a Mercedes-Benz company magazine. “I found myself reading that article at four in the morning, and I remember thinking ‘This is strange’,” Grooten told us. He heard the call of adventure. With hindsight, he would have loved to keep that old, life-changing January issue of 1981. “This is the reason why I’m here. The next day, I phoned the Immigration to ask them what it would take to migrate here.” In May that same year, Grooten landed in Auckland with a full residency visa. “My family in Holland thought I was crazy, that I was quitting a well-paid job to live among sheep. It’s the best thing I have done.” Upon his arrival, Grooten settled with a cousin in Morere near Nuhaka, long before anyone thought of building a space rocket launch base in the area. His girlfriend Erika later joined him

from Holland with a tourist visa. “She had to marry me to stay, and so we did. We’ll be married 34 years in November, and New Zealand has been a great country for us to bring up our kids Mieke, Ben and Tom. It still is.” Soon afterwards, while looking to start his own business, Grooten found a small shop to buy in Red Beach that had previously changed several hands. The only way to make the shop survive, he thought, was to increase the wholesale rate. “We could only carry on, or sell.” Word spread fast; as things started to work out, Dad’s Pies became quite known on the shore. Interestingly, in that otherwise unchallenged reign, its biggest alter-ego was a newer company going by the name of Mum’s Pies. Grooten bought it, along with a third company, and finally took Dad’s Pies to the next stage. “It gave us a business, and a life,” he said. In 2001, to meet export demand, they moved to Silverdale and built a new facility; they had to double it just two years later. Dad’s Pies can now be found in eight overseas markets, including Japan and Dubai.

With Mike Welch as his business partner, and Eddie’s sons, Tom and Ben, becoming more and more involved in the company, Dad’s Pies has also recently launched in retail. “As an old dude, I had to learn from the young lads how to do it. I can still be the frontman, but they are the young guns,” he said. “As we increased our capacity, the most important thing was to retain a good quality. It’s easy to say that, but everyone in this company knows that we are not putting a façade. They are all proud of what they do.” As you would probably expect from someone who had named his company ‘Dad’s Pies’, his family remains a top priority. When asked about the best compliment he had ever received, Grooten instinctively thought about his role as a parent. “People often tell me that my three kids are very respectful to others, and that’s the best compliment I can receive. They have worked very hard to create their own credibility.” n

local supermarket. Piling up the heavy items on top of the produce, bakery and fresh items in the trolley, the bread was flattened and eggs cracked. We were miffed and when we complained, the packer, check-out operator and manager just stood there saying the packer was new. Naturally we were a bit cross as everyone stood around rather than quickly replacing the items. It’s disappointing that the manager put the new packer on a line when there was $450 worth of groceries coming through. It was unfair on the new staff member who obviously had no idea how to pack and place the bags in the trolley. Training must be done before they hit their first shift, and that applies to all in-store. Which reminds me that some operators do have it and others just don’t get the relationship message. I know of a couple of owners who never hit the shop floor (and sometimes hardly are ever in the business itself ) and that’s a shame because the supermarket just finishes up as impersonal. Admittedly they do have duty management, but generally they are interested in the staff and not the customer. There used to be a time when the owner was known to customers and took an interest in what they did and what they thought. Love those operators and managers who are excited by the new and the innovative and can figure out how to make them work.

companies that have copped the brunt of in-house thefts of product that is now worth as much as gold only lighter. Nobody really cared at supplier or retailer level when cigarettes were cheap, but with current prices the untraceable packs are worth a fortune. The problem is that the thieves don’t have any trouble dumping the product with unscrupulous small retailers who know damned well they will never get caught. With internal thefts and ram raids, it’s a tough business to be in.

Kids today don’t know how easy they’ve got it. When I was young we had to walk at least nine feet through shag carpet to change the TV channel. It’s good now though. Senility has been a smooth transition for me. While it is critical that smaller retailers need to provide competition for our supermarkets, it is clearly becoming harder to fight the good fight. Over recent years, we have seen the decline of the small familyoperated dairies with the big winners being the oil channel. Then there was the disappearing greengrocer and the local butcher although the hot bread shops and local café/bakers seemed to survive. The serious thrust at putting a butchery chain together under the Mad Butcher banner has not been an outstanding success, with a number closing down and the liquidator saying the business model was flawed. The disappointment in this field may also be mirrored in other gourmet grocery outlets where similar products at lower prices in supermarkets are winning the battle, despite the brave face being put on. They only make sense if they were owned by Progressive or Foodstuffs and used as real delis, and that’s an opportunity that shouldn’t be overlooked.

Spare

a

OWNED

thought

for

the

tobacco

I always laugh at what has become the FGC’s kiss of death. It’s actually a bit of a laugh and no harm is intended, but it still amazes me that, over the years, there have been dozens of leaders who have come forward at conferences or taken up prominent roles, who have fallen by the wayside. Do you remember Saatchi’s boss Kevin Roberts expounded his advertising (and various other subjects) theories at a recent FGC conference. He’s the latest. Got a couple of mates who are dreading being asked to put their hand up. The Foodstuffs support for breast cancer was a worthy effort, but dressing up as your favourite super hero and taking a selfie in Pak’nSave did arouse some real interest. But I’m still wondering about a report from a Foodies mate who reckons he saw Dave Chambers dressed up as Hugh Perrett instore to check out the promotion.

Never mind, it will be summer again soon and I can take up walking to get some winter flab off. Actually, my father started walking five miles a day a few years ago. By now he would be 97 and we have no idea where he walked to.


productwatch

PREMIUM POTENT LOOSE LEAF ORGANIC HEALTH TEA Dad’s Pies are chocka with real ingredients • Prime NZ beef • Tender, fully trimmed NZ chicken • NZ grown lamb • GM free vegetables

Please contact your Dad’s Pies representative to order. Tel: +64 9 421 9027 Fax: +64 9 426 9294 Email: info@dadspies.co.nz

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There’s no room for any nasties!

Now Available in 200g Pies, 120g Sausage Rolls & 900g Family Pies.

For more information and to check out our Pie Finder head over to our website.

info@puraty.com or www.puraty.com

Gochujang Hot Pepper Paste

SMOOTH

SMOKE AND FIRE

SUPER CRUNCHY

Premium, award-winning peanut butter Gluten-free, vegan and made by hand in Wellington AVA ILA B LE NOW

INFO@FIXANDFOGG.CO.NZ WWW.FIXANDFOGG.CO.NZ 021 190 5695

• Re-sealable plastic tub & shelf display carton for 6 units • Labelling in English with recipe suggestion

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DARK CHOCOLATE

• A backbone ingredient in Korean cooking • Made the traditional Korean way • All natural ingredients – no added preservatives, colour or MSG

For more information on Sempio Gochujang contact:

Oriental Merchant (NZ) Ltd Tel 0800 10 33 05 Email: nzenquiries@oriental.com.au August 2016

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Harness the full force of nature with Red Seal.

Red Seal’s Pharmacy Strength supplement range contributed 48.5% of Total Foodstuffs Supplement growth for the last 6 months*. Our next epic new campaign goes live 1st August – 30th September 2016 and includes TVC, print and digital.

TOTAL ADVERTISING SPEND OF

$615k

AUG

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OCT

NOV

DEC

TV MAGAZINE DIGITAL SOCIAL

For more information, contact Red Seal Natural Health Ph 0800 733 732 or Email marketing@redseal.co.nz

* Aztec 6 months to 10/07/16.


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