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August 2017 • Vol. 10 No. 8
20 minutes with . . . Sandhya Pillay, Country Manager, Coca Cola Oceania (See page 12)
A NAPPY LIKE NO OTHER
editorialcomment BRINGING RETAIL AND DINING TOGETHER On a recent overseas trip, there was a noticeable increase in supermarkets erasing the line between retail and dining. This has become a popular format, with customers heading to the supermarket after work for dinner and to pick up a few groceries. The supermarket has become a destination where customers would linger, providing more opportunities for impulse purchases. It also challenges QSR outlets and has the potential to deliver fresher and more innovative dining in and take out options. But for this concept to work, it really has to look good – it has to resemble a dining establishment for customers to believe it. According to Juan Romero, a multidisciplinary design firm in the USA, retailers must leverage their environment to create memorable experiences. “Customers can spend the whole day eating and enjoying (in a supermarket),” said Romero. “There’s an entertainment value that’s happening in grocery design. The concepts inside supermarkets can go anywhere from fast casual to elegant to urban.”
TréMusco of Tesser, a brand strategy, retail and graphic design company in the USA, agrees. While restaurants cater to three core consumer needs – being care, convenience and quality, supermarkets tend to miss out on the care aspect. Musco offered a few ways that grocery stores can aid that during a NRA Foodservice at Retail Summit session recently. “Customers don’t want to feel like you’re just adding a couple of tables because you had a little extra space,” Musco said. “Your supermarket dining area should feel like a dedicated space, not an afterthought or add-on that was hastily thrown together. Customers know how the restaurant works, and that’s not standing in line with the shopping trolley.” App-based ordering from gas pumps has been hugely successful and digital technology can play a huge role in the investment. “Think to yourself – ‘How is this dining space going to go into a 30-yearold store that has a weird footprint?’ Value your assets as a grocery store and play that up.”
SEPTEMBER 2 2017: Grocery Charity Ball, Auckland
NOVEMBER 22-25 2017: SIAL Interfood, Jakarta, Indonesia
APRIL 24-27 2018: FHA2018, Singapore
SEPTEMBER 11-15 2017: PRO FachHANDEL & drinktec, Munich, Germany
DECEMBER 11-13 2017: SIAL Middle East, Abu Dhabi
JUNE 13-15 2018: SIAL ASEAN, Manila, Philippines
OCTOBER 7-11 2017: ANUGA, Cologne, Germany
MARCH 20-23 2018: Anuga FoodTec, Cologne, Germany
OCTOBER 21-25 2018: SIAL Paris, France
Sarah Mitchell Editorial Director
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.
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
diarynotes MAY 2-4 2018: SIAL Canada, Montréal
contents
04 News 08 Beverage News 14 What’s New 16 StoreCheck 18 SMA Feature
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10 12 24 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 2017
PUBLISHER Tania Walters, tania@reviewmags.com
EDITORIAL STAFF Caitlan Mitchell, caitlan@reviewmags.com Mark Fullerton, mark@reviewmags.com Courtney Macris, courtney@reviewmags.com
GENERAL MANAGER Kieran Mitchell, kieran@reviewmags.com
ADVERTISING SALES Felicity-Anne Flack, felicity@reviewmags.com
EDITORIAL DIRECTOR Sarah Mitchell, sarah@reviewmags.com
SENIOR DESIGNER Raymund Sarmiento, raymund@reviewmags.com
CHAIRMAN Peter Mitchell, peter@reviewmags.com
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
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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news
CELEBRATING 20 YEARS
For 20 years, pure delish has been creating premium products that are real, delicious and anything but ‘ordinary’. The brand is synonymous with mouth-watering excellence and they have carved a solid reputation for innovative, categorychallenging and award-winning products that have seen them become market
leader in the premium cereal space. Pure delish started out small with Kaz, owner, wanting to make some extra cash for her family at Christmas. She decided to roll up her sleeves, follow her passion for baking, and set out on a mission to make a Christmas Cake that had a more modern twist than that offered at the time. This modest beginning led pure delish to where it is today, an innovative and passionate company producing a wide range of products including, ten different breakfast cereals, snack bars, bites, slabs and last, but not least, the famous pure delish Christmas Cake! While the range has grown immensely over the last ten years, what hasn’t changed is the use of the best ingredients, the desire to make amazing products with health benefits but only if
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pure delish apart. Pure delish have some exciting things planned to celebrate this significant milestone, make sure you keep an eye on their social media pages for more information or contact them direct on info@puredelish.co.nz or phone 09 574 5701. n
FOOD RECALL SCEPTICS
TREMENDOUS GROWTH FOR ZETA Zeta Group is made up of three individual companies (machinery, manufacturer and sales force) with the goal to becoming a leading global personal care manufacturer. Having a worldwide presence means that Zeta Group has a finger on the pulse of all worldwide trends, and as a result can anticipate market shifts better than other nappy manufacturers. It has been marketing and selling their Kiddicare Brand Nappies into the New Zealand market for some time now and have achieved tremendous growth and sales success across the North Island. Zeta Group NZ (a sales division of Zeta Group) is currently based in Wellington, but is planning to move up to a new Head Office in Auckland in September as part of an effort to centralise their New Zealand operations. To be able to produce products that suit the needs of each individual market while remaining at an accessible price point, Zeta Group has worked hard to achieve a best practice efficiency model and this includes producing most of main raw materials in house. While most nappy companies would purchase a machine, and decide which material works best for that machine, Zeta Group has the resources to build a machine which works best with the material they’ve chosen. The nappy is forever changing, and there are plenty of opportunities for physical development. Zeta Group are releasing a new nappy this month, one which Oceania sales manager Stephen Taylor says will revolutionise the nappy game. “It will have a major impact into the market – there’s simply nothing else like it available,” he said.
they don’t have to sacrifice taste! Through to the belief in employing talented people over automated machinery, to hand-making and handpackaging each product using only the bare minimum processing. These are the things that firmly set
STPHEN TAYLOR, ZETA GROUP
The new nappies feature a new ultra-thin absorbent inner core using non-traditional materials; according to Taylor, this will provide an even better absorbent performance. The absorbent crystals are crushed and distributed throughout the nappy rather than simply in the base, which avoids the sagging so often seen in conventional nappies. Extensive research was conducted in order to support marketing of the new nappies. The research found that New Zealand is one of few countries around the world that uses babies on nappy packaging, but it also found that babies are not what parents want to see when buying nappies. “We have a two-minute window to convince parents to buy our product,” explained Taylor. “They want the confidence that it will work, and it was our challenge to convey this in our packaging.” As well as a completely new packaging range, the company is working on a new interactive customer experience. A new Facebook page and Instagram are in the pipeline, as well as a website featuring blogs written by celebrity mothers. The new nappies are already for sale overseas and are showing very good growth. n
OWNED
New research confirms the importance of providing specific details in food safety warnings and recalls. A study Blackland PR conducted with Horizon Research recently showed that warnings about food safety are among the most likely of all warnings (such as those about weather and tsunami) to be believed. A mere seven percent of people felt the last food warning they had seen made them less likely to believe the next one. Forty-five percent felt the previous warning made them more likely to believe the next warning. The real story is that consumers are generally sceptical. Half of respondents said that previous warning accuracy plays no part in their judgement. This is consistent with international research that shows official warnings are only one factor in people’s decision-making about what to do. People analyse food warnings for detail and information to help them judge whether the risk sounds legitimate, serious and likely to affect them. Failure to provide detail about the problem and concrete and differentiated suggestions for action undermine credibility of the warning.
Those less likely to believe future warnings on food safety were 60 percent male and 13 percent younger than those who were more likely to believe future warnings. Those more likely to believe food safety warnings were 58 percent female, of average age. According to research, the best approach to formal warnings is to: 1. Warn early. 2. Warn using many official sources. 3. Provide corroborating information. 4. Provide very specific instructions. 5. Define who should act and who should not. n
MARK BLACKHAM
PIC’S SMOOTHES JUDGES
Nelson-based peanut butter maker Pic’s Peanut Butter has won a cluster of prestigious 1-star accolades at the UK’s Great Taste Awards. Judged alongside more than 12,000 blind-tasted products, Pic’s Crunchy No Salt Peanut Butter, Smooth Peanut Butter, Smooth No Salt Peanut Butter and Almond Butter all received 1-star awards. The
Great Taste awards, organised and run by the Guild of Fine Food, is globally acknowledged as one of the most respected independent food accreditation schemes for artisan and specialty food producers and is often referred to as the ‘Oscars’ of the food world or ‘epicurean equivalent of the Booker prize’. “In New Zealand, we have become accustomed to the high standards of our everyday foods – something we tend to forget when visitors are surprised by the cost of groceries here,” said Pic’s Peanut Butter owner, Pic Picot. “So, while it’s great to see our peanut butter recognised internationally, knowing that it is a Kiwi staple means a whole lot more to me personally.” n
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COUNTDOWN REIGNS SUPREME For the third year in a row Countdown’s Angus beef has been declared the Supreme Brand Winner at the 2017 Steak of Origin awards. The Awards are an annual event run by NZ Beef and Lamb to select the best steak producers in the country. Countdown placed first and third in the Best of Brand: Retail. Countdown Angus beef beat out tough competition to be named Supreme Brand Winner Award.
ONE MILLION AND COUNTING
Senior Category Manager Meat and Livestock, John van Boxel, said winning the brand award for the third-year running is a huge achievement and the team are delighted. “Winning again this year is great recognition of the top-quality meats that Countdown has to offer. We ensure we have close relationships with our farmers, which helps us to achieve such high standards and these awards show us the benefit of working together. n Since being ranged in the New Zealand market a year ago, Westgold’s award-winning premium butter has continued to deliver strong category growth, exceeding one million blocks sold. This is a huge achievement over a short period of time, in a wellestablished market and one of which the Westgold team is extremely proud. Westgold is the only butter traditionally churned on the iconic West Coast of the South Island. The jersey and jersey-cross cows produce a creamier milk and the high rain fall and sunshine hours make for excellent dairy farming conditions. The brand’s recent success is emphasised with both salted
and unsalted varieties receiving bronze awards at the coveted NZ Champions of Cheese Awards earlier this year. With continued support from their New Zealand consumer base Westgold continues to move from strength to strength. Though new to New Zealand shelves, Westgold products have been successfully sold on the international market for the past 12 years. “We are extremely proud of how New Zealand consumers have embraced Westgold. To exceed one million blocks in the past 12 months is a testament to the dedication and care that goes into our products; from the farm to the consumer,” said senior brand manager Stephen Buckingham. n
FOODSTUFFS LAUNCHES ELECTRIC FLEET A new fleet of 100 percent electric vans is cruising around NZ, branded with New World, PAK’nSAVE and Four Square logos. Foodstuffs NZ officially launched the fleet at a ceremony at New World Lincoln in Canterbury after being awarded $500,000 by EECA from the Low Emission Vehicles Contestable Fund to implement a project that involved importing 28 electric vans from the UK. Sustainability Manager for Foodstuffs New Zealand Mike Sammons says the van rollout complements the electric vehicle fast charging points that are being installed in a number of stores. “We already have fast charge stations
pure delish is celebrating 20 years of innovation, pushing the boundaries and providing our customers with a range of quality products we are extremely proud of. Being in business such a long time isn't due to good luck - it has been 20 years of passion, determination, hard work & focus.
at the New World stores in Otaki, Warkworth, Te Kuiti and Kumeu in the North Island and Northwood in the South Island, we anticipate another half dozen will be installed over the next year or so. We see these charging stations as an important community resource. They will become increasingly useful to our customers as more New Zealanders transition over to electric vehicles over the coming years.” With their brightly coloured branding, the Foodstuffs vans are highly visible on the road. Sammons says they’ll be a talking point in the 28 communities they are being distributed to around New Zealand. n
pure delish would not be what it is today without you and your support of us on this epic journey. Here’s to the next 20!
WIPES GO NATIONAL
cereals • bars • biscuits/bites • slabs • festive range www.puredelish.co.nz info@puredelish.co.nz | ph. 09 574 5701 | follow us on
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From the start of August, the Hand & Trolley wiping system will be expanding nationally in partnership with Storelink. After terrific success in Auckland and due to continuing high demand from all other parts of the country, the team at Hand & Hygiene, who distribute Off Shoot Wipes, are pleased to be working with Tony and Philippa and the team to now rapidly grow their presence
across all New Zealand and maximise reach and frequency. “With out of Auckland customer service paramount, we recognised the need to engage a trusted partner for the next phase of our growth. We are really excited about the possibilities across a range of outlets, with our Storelink partnership,” said Jeff Johnson, sales and marketing for Off Shoot Wipes. n
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Talk to your ISM representative today or contact AFM Group on Freephone 0800 100 307 or email: hello@macyandtailor.com August 2017
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beveragenews DB BREWERIES APPOINTS MILLWARD
DB Breweries has announced that Paul Millward has been appointed as its new sales director. Millward joins DB’s leadership team and will be responsible for delivering domestic and export sales for the business. Millward started at DB in 2010 as head of retail. He has achieved considerable success at the company over the past seven years, building outstanding relationships with customers across grocery, traditional and wholesale channels. Millward replaces Dan Gilbert, who has been promoted by the Heineken Company to the role of managing director for Solomon Breweries Ltd in the Solomon Islands. n
BOTTLER BESTOWED BEST EMPLOYER
Coca-Cola Amatil New Zealand (CCANZ) has received the prestigious Aon Hewitt Best Employer Accreditation for the second year. The Aon Hewitt Best Employer Accreditation 2017 was announced at a special luncheon held in Sydney and recognises New Zealand and Australian companies who are creating fantastic places to work. To receive this accreditation, businesses are put through a stringent auditing process which involves an All-Employee engagement survey, People Practices Inventory and interviews with senior management teams. Only businesses that excel at delivering an exceptionally positive and engaging workplace experience for employees can progress to the next stage and be considered for the accreditation. CCANZ managing director, Chris Litchfield, is extremely proud of his company’s achievements and is honoured to receive this accreditation two years in a row. “Being named one of the best places to work in New Zealand doesn’t happen by accident. We have had an uncompromising focus
on doing what is best by our people, who are at the heart of everything we do and who have helped us once again achieve this accreditation. This prestigious recognition pays credit to all our wonderful people and their determination and commitment to make our work environment safe, engaged and enjoyable,” said Litchfield. “Our people are not the only ones who greatly contribute to our company. Our consumers and their communities, along with our customers and other partners, are also major reasons why our business is as successful as it is. We want to thank them for their continued support.” n
FOOD HOSPITALITY WORLD CHINA 2017
INTEGRATION OF INTERNATIONALISM TWO GOLDS FOR HUNTER’S Hunter’s have won two gold medals at the San Francisco International Wine Competition 2017. The success for the familyowned winery has been a breakthrough moment according to chief winemaker James Macdonald. The 2016 Hunter’s Marlborough Sauvignon Blanc won gold and 93 points, while the 2014 Hunter’s Marlborough Pinot Noir picked up gold and 90 points at the prominent wine show. Macdonald said the awards will help enlighten the American wine drinkers about the quality of New Zealand wine and Hunter’s wine in particular. “It’s a bit of a breakthrough for our wines, especially our Pinot Noir to be recognised in America, which is something of an emerging market for us,” said Macdonald. “For a long time, our bone-dry Sauvignon Blanc and elegant Pinot Noir was not always appreciated. These medals show that palates are evolving and that the future is bright for Hunter’s in the USA.” n
Food Hospitality World China 2017 (FHW China 2017) is organised by WorldexSingEx Exhibitions and has become the most international and profession food and hospitality fair in Southern China since 2012. It is the best business platform for food suppliers entering the China market and a must-attend event for the food industry. This year the event celebrates its sixth edition that will be held in conjunction with Hosfair and will see over 2,400 international exhibitors participate from forty different countries. FHW has become a professional food exhibition with the highest proportion of international exhibitors in South China. Highlights of this year’s show include a professional food exhibition with the highest proportion of international exhibitors in South China and a VIB (Very Important Buyers)
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program that will see high-quality buyer resources and precise matching between supply and demand. FHW helps companies to understand the local market with Market Visit – a tour in two retailer imported food supermarkets and meeting with the purchasing managers that looks to help suppliers understand the market better and network directly with buyers. n
PRODUCT ENQUIRES:
Q-LIQUID LTD 232A Neilson Street Onehunga, Auckland Tel: 09 636 77 30 Email: info@qll.co.nz www.qll.co.nz
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THE RISE OF THE EMPOWERED CUSTOMER
Consumers today are inundated with choice, information, and the ability to get what they want, when they want it, from anywhere in the world. The rise of the empowered consumer means that shopping is no longer passive; customers have taken control of their shopping experience and are informed and price savvy. They demand flexible shopping facilities like pick up from store and home delivery. They value word-of-mouth from influencers, social media and their friends over traditional advertising, and they expect businesses to be both socially and environmentally responsible. That’s why changing the way we connect with our customers is essential, or we risk being left behind or overlooked. Here in New Zealand, the empowered customer has an abundance of choice. The grocery market is incredibly competitive and people shop around
Dave Chambers
Managing Director Countdown
a lot more than they used to. Online shopping and advertising also make price transparent for people, so they can plan what they’re buying and what they’re going to pay for it. Countdown has been leading the online shopping experience for more than 20 years and today as the country’s largest online retailer, we continue to innovate in this area. Customers right across New Zealand can shop from their phone or desktop and then pick up in store or have it delivered to home that same day, and they can be sure they’ll get the same prices online as they would in their local Countdown store. We have even extended our convenience offer to include New Zealand Post delivery pickup from our stores. Today’s customer is more connected than ever before thanks to the rise of smartphones and social media. They like brands and they want to engage and commit, so value through loyalty remains really important. However, customers expect this loyalty to go both ways. Customers want to hear from companies but they expect you to use their data meaningfully and personalise their experience. At Countdown, we continue to lead and innovate our Onecard loyalty programme, recently partnering with AA Smart Fuel which is the largest fuel programme in the country. We generate a rich source of data which then personalises all of our communication, tailoring to the individual with product suggestions via our myCountdown
emails and Onecard activations. We recently won the Direct Marketing Awards for our work in personalised marketing and we continue to lead and innovate in this space. Corporate responsibility, service and experience is hugely important for customers today. They have carefully chosen, researched and now made a decision to commit to your business - be sure to give the customer an experience to remember or lose them forever, and risk them telling everyone on social media. At Countdown, we have an active and engaged social media experience across our website and Facebook. We have a relationship with an audience of more than 300,000. We want to enhance our customers’ word-ofmouth, sharing great content posted to our site and actively engaging with influencers within our Countdown community to help share their experiences with their friends and family. But despite the demands, challenges and opportunities of today’s empowered customer, what remains constant though, is their focus on an in-store experience that matches outside perceptions. We will continue to focus on having the right team on at the right times of the day, and ensuring we have the right range in the right store for that particular community. Fundamentally, the basics of retail remains the same and our focus continues to be customer led. n
Put it in your calendar now – October 2017 – Loscam Pink Pallet fundraiser for Breast Cancer! #loscampinkpallet was a huge success in 2016 and we are looking forward to great support again this year.
Scan this QR Code to find out more about the LOSCAM pallets.
www.loscam.com shaun.sievwright@loscam.com
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THE PROBLEM WITH ‘RESEARCH’ New Zealand is known the world over for producing top-quality food, be it dairy, meat, kiwifruit or anything else that comes off our land or from our seas.
Katherine Rich
Chief Executive NZ Food & Grocery Council
Most of our products are so good that they fetch top dollar wherever we sell them, and a lot of the time we can’t supply enough to meet demand. We’re able to do this not just because we’re very good at growing the raw materials, but also because we’ve become expert at turning them into safe and nutritious products.
Being that good also means our food industry is the target of regulations and subsequent checks from government bodies whose job it is to protect the country’s reputation. We not only welcome that, but we play a big part in developing regulations – because we want to continue to be the best. We also welcome scrutiny from anyone else who comes along, as long as it’s fair. Unfortunately, that’s not always the case. A recent example was a claim by an Auckland University “expert” who claimed babies being fed commercial baby foods are being “exposed to
foods high in concentrated sugar as their first foods”, including some with four teaspoons of sugar per serve. But the claim contained a lot of misinformation, and because of this it will have caused confusion and concern for parents who are making sound food choices for their babies. The World Health Organisation says its recommendations for the intake of added sugars in the diet do not refer to sugar in fresh fruits and vegetables, and sugars naturally present in milk, “because there is no reported evidence of adverse effects of consuming these sugars”. The only concern about natural sugars in fruits is when it’s juiced or concentrated. Pre-prepared baby foods available in supermarkets, such as canned, jarred or pouch fruits, generally don’t contain added sugars, nor are they concentrated. Contrary to the misinformation, these foods still contain natural fruit fibres. It’s extremely important people understand that the suggestion that infants about six months old receive “less than two teaspoons of sugar a day”, relates only to ADDED sugars. It would be alarming, even dangerous, if parents were led to believe this relates to natural milk and fruit sugars. A 200ml feed of breast milk contains 3½ teaspoons of the natural milk sugar lactose, and at six months a baby should still be receiving three to four milk feeds a day. No one
should be concerned in the slightest about the 10-14 teaspoons of sugar from breast milk, and neither should they be about fruits. It makes no sense for scaremongering about natural sugars in milks and fruits. These foods are vital for healthy growth and development. Babies are often fed fruits as first foods for good reason. The natural sweetness of breast milk gives babies a completely normal preference for sweet foods, and pureed and mashed fruits are a highly nutritious choice. In the long term, offering babies fruits and vegetables helps establish sound healthy eating patterns. Fruits are such important foods that as a nation we’re concerned that by age five years only half our children are eating the recommended two serves a day. Deterring people from feeding fruits to infants does nothing to address this problem. Parents can be confident that supermarket-bought baby foods are a nutritious option and can be used as part of a healthy diet. It’s not common practice for manufacturers to add sugar to baby fruits and the levels are comparable to fresh fruits often recommended for babies. The problem with the “research” seems to stem from a poor understanding of nutrition. n
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A CAREER IN SUPERMARKETS? DON’T UNDERESTIMATE IT. Supermarket careers haven’t always been my thing. When I was five I wanted to be an archaeologist, by 15 I wanted to be a marketer, I even actively avoided a supermarket job at high school – believing it wouldn’t get me anywhere in my career. Fast forward to 2017, I’ve been working for Foodies for 18 months and quickly becoming a big advocate for the uncredited careers that supermarkets offer … hindsight is 20/20 I guess.
supermarketnews.co.nz
One of the things that wows me most is the impact we have on our youth. Supermarkets are probably the biggest employer of youth in New Zealand and the part we play in teaching people to work and developing their careers is huge and pretty much unrecognised. Supermarkets expose our young people to a diverse range of careers early on, meaning they can make informed decisions with some quality experience to back their next move. Supermarkets allow our young people to learn this in their own community, no matter the size, and be part of a bigger organisation who can invest in them to develop and progress their career wherever life leads. I’m going to be biased and say a supermarket career in a NZ owned co-op, as Foodies is, adds an extra cool element to a supermarket career. At Foodies we offer all kinds of opportunities for people to learn, grow, be inspired and carve a memorable career with a legacy of making sure New Zealanders get more out of life.
Pillay moved to New Zealand in 2015 with three (very opinionated) daughters, two (spoilt) dogs and one (rock-star) of a husband, and she’s “trying to keep that number the same!” She has spent the last two years exploring every possible part of New Zealand. “I do love Auckland. I’m a big city girl so it’s my heart, but every time the plane is about to land in Queenstown I think ‘this is what God did on the seventh day.’” The weather may have taken some getting used to, but the “great food, great wine and great people” meant that New Zealand was soon referred to as home – even if it makes watching her beloved Manchester United that much more difficult, as the one hour time difference between the UK and South Africa has now been replaced by a for less convenient 11 hours. Outside of sport, though, Pillay’s career has seen her work her way up through
COUNTRY MANAGER COCA COLA OCEANIA
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General Manager People and Capability Foodstuffs NI
In the early hours of August 6, Sandhya Pillay, General Manager for Coca-Cola Oceania, dragged herself out of bed to watch the Super Rugby final. Although the South African born Pillay was firmly behind the Johannesburgbased Lions, there was a certain satisfaction in seeing a team from her adopted home country lifting the trophy.
Sandhya Pillay
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Our trainee operator programme is one of my favourite things about careers at Foodies. It’s exciting to me that someone working on trolleys at 16, can work their way up to own their own store with significant influence in their community. On average we train between 10 and 20 people each year for ownership and we have on average about five entry level stores come up for sale every year. Of all our Owner Operators, 80 to 90 percent have worked their way up through our stores. These folk have an unrivalled understanding of how the business works and being in a co-op allows them to use this experience to pioneer the direction of their store – ensuring the business thrives and inspiring all of us along the way. Where else can you mix technical skill, the chance to lead big teams and the potential to be your own boss? It’s also been inspiring to be part of developing 300 apprentices in Bakery & Butchery every year. We currently have 243 apprentices in the business.
Approximately 10 percent of the Butchery apprentices are female with some of them being our Champion Butchers. We regularly hold competitions in Butchery & Bakery – best apprentice, best butcher, best baker and the Sharp Blacks and World Butchers Challenge which is in Ireland next year. All of our courses and programmes are designed and developed in consultation with our stores, support centre and industry experts. These programmes are developing leaders across our whole business who make a difference to the lives of New Zealanders every day – customers and employees alike. I love the pace of this industry, the customer focus and the wonderful people that I get to meet and work with every day. As the hub of every New Zealand community, Foodies see it as their job, no matter their role, to be part of creating exciting new experiences for our customers. It’s an inspiring place for anyone to be. n
top South African and global companies. After finishing a commerce degree Pillay began her career as a marketing grad at SABMiller for four years where she progressed through the Sales and Marketing functions. She then enjoyed a two year stint at an FMCG company, Tiger Brands heading up their beverages division. While on maternity leave for her first daughter she was headhunted for an opportunity at Coke, where she spent six years in customer and commercial leadership. When the opportunity arose to take on the Oceania role in New Zealand, “it seemed natural”. It was, Pillay admits, quite a rapid career progression. “It all happened pretty quickly, and I always remind myself that there’s no such thing as luck. You have to put in the time, energy and passion so that your results speak louder than your words and your track record precedes you.” The role of General Manager is one which has suited her to a T. “You’re learning about different functions of an organization all day, every day,” she said. A typical day for Pillay could involve a conversation with her bottling partner in the morning, and then doing research into sustainable business practices, and then a meeting about new product development and marketing, then moving on to a financial conversation. “All the while I’ll be stopping to make time for my team, checking in with them and making sure they have what they need from me to progress their work.”
Pillay has a deep passion for The CocaCola Company, one which continues to Grow as the company moves from being based around a single brand to one which is centered on Beverages for Life. “I’m increasingly more inspired to be part of something amazing that can have a positive impact on people around me. The Coke No Sugar launch was massive! I love being able to actively encourage people to drink no-sugar beverages from our portfolio. Especially when we believe it taste as close as possible to the real thing!” As a younger woman in such a prominent role, Pillay can’t help but feel an extra element of pressure. “I’d be lying if I said it wasn’t there, but I’m beginning to wonder how much of that pressure is self-inflicted.” While her number one priority is running the business as best she can, number two is being a role model to other women. “I think there’s the impression that certain roles are ringfenced for a specific gender. I’m thrilled and humbled with the opportunity to shatter that misconception.” she explained. Pillay had been blessed to have great managers and great mentors in her time. As an eternal optimist, finding and unleashing potential in situations and people is what gets her out of bed every day. “If I had a genie, my one wish would be for women to support each other unconditionally. We need to be each other’s biggest fans. That is how we will individually and collectively progress.” n
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For further information and assistance with travel and accommodation planning Robert Laing Messe Reps. & Travel 09 5219200 robert@messereps.co.nz
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Happier Nappies New Zealand company Kiddicare is taking on the established names in the nappy category with innovative design and materials in its new range. Their nappies have a super-thin yet highly absorbent five-layer core that provides ultra-fast maximum absorbency. The result, according to Kiddicare, is that babies stay drier and more comfortable for longer: truly a nappy to make everyone happy. The innovative technical aspects are complemented by charming pack design, featuring a cast of loveable animal characters. Kiddicare’s range covers nappies, nappy pants and baby wipes. Contact Stephen Taylor on 027 536 3007.
Enhance the Gin Experience
The Gin Drinker’s Collection by Bootleggers is the ultimate collection of tonic waters for the most discerning gin drinker. Each tonic water is carefully crafted to enhance even the most sophisticated gins. Consumers will find their ‘perfect partner’ for any gin when they discover the collection. The brand encourages all gin drinkers to step outside the norm of traditional tonics and let their chosen gin be mixed with their chosen tonic water. Pick your gin, pick your tonic. For more information contact James Waugh on 021 507 230 or james@bootleggerssoda.co.nz.
TOTOPITOS! Tio Pablo has launched Totopitos Corn Tortillas. The tortilla wedges are fried in sunflower oil and lightly seasoned to recreate the flavour of authentic tortilla chips. Made in New Zealand, the corn tortilla chips are available in three different flavours – Salted, Citrus Chilli and Spicy. They are gluten free, vegan and do not include any artificial flavours or colours. Available in 80g and 230g packs. For more information visit www. tiopablo.co.nz or email info@ tiopablo.co.nz.
World-First Tomato Sauce
Gault’s Tomato Ketchup is a world-first tomato sauce that is sweetened only with 100 percent New Zealand vegetables and tastes just like ketchup. Of course, it is delicious: it’s Simon Gault’s recipe. Since selling out of product in the morning on the second day of The Food Show Auckland, demand has been unprecedented and feedback has been overwhelmingly positive. Ingredients for Gault’s Tomato Ketchup are grown right here in New Zealand — where it is also made — and is merited with the mark, “Product of New Zealand”. Gault’s Tomato Ketchup comes in a 475g x 12 shipper with two facings and will be available for retail distribution over the next couple of months.
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Shelf Stand-Out Macy and Tailor product is a shelf stand out in the category that consumers associate with premium quality and a delicious product. This is reflected through the clean, welldesigned packaging, and the communications that engage consumers with the brand. Family owned and operated, Macy & Tailor products are free of preservatives and are non-GMO. Macy and Tailor is cute, quirky and humourous but takes quality seriously. The brand name is emotive, catering to a niche market of people who enjoy purchasing products that are tailored to their everyday needs and those who want healthy natural products. The Macy & Tailor customer base is made up of people who want the benefits of something natural and enjoy that the brand doesn’t take itself too seriously, it is approachable fun and friendly. With wildly delicious variants like Pressed Pretzels in Salt and Pizza flavours and Vege Crisps in Beetroot, Carrot & Parsnip, and Carrot Beetroot & Parsnip consumers will relish the taste of real, honest snacks. Products are available in 12 packets per carton. For more information contact, hello@maceyandtailor.com or AFM Group on 0800 100 307 or visit www.macyandtailor.com.
100% Pure Kiwi Snack
Many snacks have added sugar, colour, preservatives and are very chewy (beware tooth decay). Kiwi Bites are 100 percent pure with nothing added. They are thin to aid chewing and prevent adherence to teeth and slowly air-dried over 16 hours to capture all the enzymes, vitamins and other goodies. Kiwi Bites are great value with five average sized kiwifruit dried into each 50g pack (35-45 slices in each). The product has a shelf life of a year if stored cool, dark and dry and zare a super easy, ready-to-eat snack. For more information visit www.kiwibites.co.nz.
Deluxe Nuts in Demand
Consumers are simply eating more nuts. Depending on the occasion, both small and large pack sizes are in demand. Mother Earth, market leader in snack nuts based on its successful small packs, is launching a new large pack range. Its innovative and eye-catching packaging creates a fresh impact, while the larger pack size encourages sales of Mother Earth nuts for additional occasions, like sharing, entertaining and gifting. Eight SKUs in total, including Mother Earth’s unique Deluxe Nuts with no peanuts, and the brand new SCROGGIN with real chocolate. That’s nature at its most delicious! For more information contact 0800 80 80 88 or visit www.motherearth.co.nz.
World’s First Blue Wine
New Company Drops Smoothie Bomb
An international success since 2009, Wuthrich Wines are proud to introduce Blumond, the world acclaimed and most loved latest trend in wine and beverage industry. “We wanted to create something very special, excellent and unique that has not been created before, changing the colour to a vibrant blue and making it sweeter and easier to drink – and that’s exactly what Blumond is!” It’s made in Italy by Fratelli Saraceni, a family winery who is revolutionising the Italian and global wine scene. Bright blue, bubbly and seductive, Blumond is refreshing and light (only 7 percent alc.). For more information contact Daniel Wuthrich on 0211282168 or wuthrichwines@gmail.com
‘Mumpreneur’ Cinzia Cozzolino has been selected as a finalist in two categories in the AusMumpreneur 2017 awards for her Smoothie Bombs. Cozzolino is a Melbournebased nutritionist and founder of Smoothie Bombs and the Nutrition Darling brand. “To give my daughter’s smoothies some sustenance I started to combine the nuts and seeds and superfood ingredients that we had in our cupboard into pre-portioned boosters,” said Cozzolino. Each tube contains 5 smoothie bombs. Available in Super Greens, Super Berries, Raw Cacao, Peanut Butter, and Golden Chai. They are easy to crumble, toddler and kid friendly,
great tasting, vegan, gluten free, palm oil free, dairy free, refined sugar free, certified organic and have no preservatives.
Seeding A New Favourite New Zealand’s favourite Oat Crackers now have a new range with four fabulous new flavours, thanks to the newest innovation from 180 degrees – 4 Seed Oat Crackers. Created for taste, the new 180 degrees 4 Seed Oat Cracker range features four deliciously different flavours including Caraway, Cumin, Fennel, and Original. With four unique taste sensations, there is something for everyone. Original 4 Seed Oat Crackers is a tasty medley of chia, linseed and black and white sesame seeds, while different aromatic seeds are added to enhance the flavour of the Caraway 4 Seed Oat Crackers, Cumin 4 Seed Oat Crackers and Fennel 4 Seed Oat Crackers.
Primo Timing
Classic Kiwi brands Primo and Tip Top have collaborated to create a new limited edition Primo experience in two iconic flavours – Primo x Tip Top Hokey Pokey and Primo x Tip Top Mint Choc Chip. Flavoured milk is the top impulse purchase in grocery with 64 percent of purchases classed as ‘impulsive’. These two new limited edition products have been created to surprise and delight customers who’re always looking for something new to try in this popular category. A recent study recognised Tip Top as New Zealand’s fourth most well-loved brand. Combining strong brand equity, these classic kiwi ice cream flavours create the perfect platform for a sweet collaboration. Primo x Tip Top contains only natural colours and flavours – they won’t be here for long.
Supports Healthy Function
Hitting shelves NOW! Reinvigorating the joints segment in grocery, Red Seal have introduced two of the latest ingredients in joint care to their premium, high potency Pharmacy Strength range. Red Seal’s Pharmacy Strength Artemisia Annua 300mg contains a traditional medicinal herb currently setting the joint market on fire and now finally available in grocery. This incredible herb, supports healthy function and mobility of stiff worn or damaged joints. Red Seal Pharmacy Strength Turmeric 16,0000mg is also leveraging the global interest in this incredible spice. Red
Seal’s new Turmeric 16,000mg has many benefits including supporting healthy joint mobility, joint and muscle comfort, digestive comfort and healthy aging. For enquiries call your Endeavour sales rep or call 0800 733 732.
Optimising Protein Anchor is helping Kiwis to optimise their protein intake throughout the day with the introduction of an innovative range of milk, yoghurt and smoothie boosters. Anchor Protein+ is the first range of its kind in New Zealand to provide easy and versatile ways to support optimal protein intake throughout the day. “As a trusted New Zealand dairy brand, Anchor has recognised our role in helping Kiwis understand the importance of protein, and provide ways for them to use dairy as a protein source. The Anchor Protein+ range can be a way to help support optimum health,” said Angela Rowan, Fonterra general manager of nutrition. With no artificial colours or flavours, a 5/5 health star rating, and clear labelling stating the protein content per serve, the Anchor Protein+ range is a healthy and convenient way to support protein intake throughout the day. The products are stocked in supermarkets nationwide.
New Flavour Combination
After Cadbury Dairy Milk with Oreo Vanilla block became the most successful food launch in New Zealand in 2016, Cadbury has taken on the challenge of developing a new flavour for the winning combination – and what better way than to add more chocolate! [Source: Nielsen Scantrack, Market: Total NZ Supermarkets, NPD analysis first 13 weeks’ value sales, MAT to 01.01.2017] Kiwis have demonstrated their love for the pairing of Cadbury Dairy Milk milk chocolate with the brand’s much-loved Oreo cookies, and now it’s available with a chocolate crème filling! Mondelez New Zealand Country Head, James Kane, said this latest flavour combination is part of Cadbury’s dedication to bringing Kiwis new delicious flavours, encouraging them to Be Flavour Braver, whether that means rediscovering a classic flavour in the range or trying something completely new.
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storecheck This month our mystery shoppers focused on the Ponsonby and Grey Lynn area in Auckland. What they found was a lot of stores following international trends, leading the pack, while others came across as tired and lacked engagement.
COUNTDOWN PONSONBY: A+
STORE EXTERIOR (Max 30 pts) INCLUDING: Outside of the building and grounds tidy, well signed, adequate trolley bays; Windows and exterior clean, tidy; Signage well presented and up to date; Car Parking number of spaces well marked; Trolley condition.
CD Ponsonby
Williamson Ave Westmoreland Rd
FF Grey Lynn NW Victoria Park CD Grey Lynn CD Grey Lynn College Hill
Richmond Rd
Williamson Ave
SCORE 29 29 28 25 19
4 WILLIAMSON AVENUE AFTERNOON: Driving into this supermarket, the carpark was very clean and had a great parking system in place. As you make your way up to the store, the floors are spotless and the lighting is excellent and continued into the store. This is one of the best examples of the Countdown brand and has taken on board the best practice of both local offerings and international trends. The aisles are wide, clear and clean with quality shelving and no spaces requiring merchandising. Ticketing, end of aisle promotions, fridges and freezers were all faultless. The staff are friendly, efficient and approachable, clearly engaged with their roles. Each area was well thought-out and the layout provided an easy customer flow. International, gourmet, artisan, free-from – all well stocked and had good ranging. The overall shopper and store experience was exceptional.
FARRO FRESH GREY LYNN: A+
STORE INTERIOR (Max 30 pts) INCLUDING: First impressions; Flooring, type, upkeep, clean? Lighting/heating, is store heated/cooled? Lighting adequate and/or task specific? Instore signage; Promo/seasonal products; End of aisle promotions; Condition of fridges, freezers and chilled shelving, condition and layout.
CD Ponsonby
Williamson Ave Westmoreland Rd
FF Grey Lynn NW Victoria Park CD Grey Lynn CD Grey Lynn College Hill
Richmond Rd
Williamson Ave
SCORE 29 30 29 26 18
STORE LAYOUT (Max 20 pts) INCLUDING: Layout of store, Aisle width; Shelf edge labels/ticketing; State of store, shelving, clean, no damage, neat & tidy; Sufficient number of trolleys/baskets available given shopper numbers.
CD Ponsonby
Williamson Ave Westmoreland Rd
FF Grey Lynn NW Victoria Park CD Grey Lynn CD Grey Lynn College Hill
Richmond Rd
Williamson Ave
SCORE 20 19 18 18 14
WESTMORELAND RD
MORNING: This store epitomises the trend for a customer driven market experience; from blackboard market styled signage to the music playing. The exterior was clean and tidy with an additional area to sit and drink takeaway coffee. It had a great vibe and provided customers with a reason to linger. Exterior signage was good and sufficient carparks for the number of customers. While ranging was constrained due to space considerations they more than made up for this with the range of artisanal and small batch products. Good promotional signage and clear aisles throughout the store along with some good promotional ideas. Staff were friendly and engaged. Here the staff are foodies, they have taken on board the ethos of the chain. The food-to-go options were excellent. This store has clearly taken notice of international trends and is continuing to innovate. Overall, an excellent shopper experience .
PRODUCT RANGING, AVAILABILITY, CONDITION, FOR SIZE OF STORE (Max 25 pts) INCLUDING: Range, stock levels, condition of packaging, use by expiry.
CD Ponsonby
Williamson Ave Westmoreland Rd
FF Grey Lynn NW Victoria Park CD Grey Lynn CD Grey Lynn College Hill
Richmond Rd
Williamson Ave
SCORE 25 24 21 23 17
GENERAL MERCHANDISE (Max 15 pts) INCLUDING: Range, stock levels, condition of general merchandise, including newspapers, magazines and cards.
CD Ponsonby
Williamson Ave Westmoreland Rd
FF Grey Lynn NW Victoria Park CD Grey Lynn CD Grey Lynn College Hill
Richmond Rd
Williamson Ave
SCORE 15 15 15 14 8
NEW WORLD VICTORIA PARK: A
STAFF & CHECKOUTS (Max 30 pts)
COLLEGE HILL
MORNING: This normally standout New World supermarket, the go to for international visitors, was not up to par on this visit as there was a lot of merchandising needed in almost every aisle. Other than that, the store was clean, the carpark was large and displayed clear signage. The shelving, fridges and freezers were clean and the ticketing was good. The magazine and card section was great and had a good range of products. Fresh produce was well displayed, fresh and inviting. The stand out for this store is the food to go/deli area, as always it was a reflection on the store’s standards. Checkout area was clear and staff friendly and efficient.
COUTDOWN GREY LYNN: B
INCLUDING: Staff uniforms and name badges, attitude to customer including acknowledgement, thanks; Adequate checkouts open considering the time of day and number of customers; Speed and efficiency; Checkout area, tidy, merchandised; All counters staffed to levels compatible with customer numbers.
CD Ponsonby
Williamson Ave Westmoreland Rd
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College Hill
Richmond Rd
Williamson Ave
SCORE 29 30 27 26 10
FRESH (Max 30 pts) INCLUDING: Variety and appeal, stock levels/merchandising of fresh products, including produce, meat, fish, deli, bakery.
CD Ponsonby
Williamson Ave Westmoreland Rd
FF Grey Lynn NW Victoria Park CD Grey Lynn CD Grey Lynn College Hill
Richmond Rd
Williamson Ave
SCORE 30 29 29 27 15
RICHMOND ROAD
MORNING: The carpark of this store was untidy with some rubbish around and the trolley bays were very spread out with some rust showing, however there were a lot of carparks and clear signage. Additional signage near the street entrance would be welcome. The store itself is very spacious
FF Grey Lynn NW Victoria Park CD Grey Lynn CD Grey Lynn
INTERNATIONAL CUISINE (Max 5 pts) INCLUDING: Range, stock levels/merchandising.
CD Ponsonby
Williamson Ave Westmoreland Rd
FF Grey Lynn NW Victoria Park CD Grey Lynn CD Grey Lynn College Hill
Richmond Rd
Williamson Ave
SCORE 4 4 3 3 2
with wide aisles holding a normal range of products for a Countdown. The bakery was good and same for the fish which had a great display in what is a small area. General merchandise was good. The checkout area was good except for the checkout tills which are the older style. The main downside of this store on this day was the staff, they came across as disinterested and lacked customer focus and engagement.
ARTISAN/GOURMET/INDULGENCE (Max 5 pts) INCLUDING: Gourmet, Indulgence, Local or Artisan products range and stock levels.
CD Ponsonby
Williamson Ave Westmoreland Rd
AFTERNOON: On approach the ground made the trolley bay on an awkward angle and made it difficult to retrive a trolley. Trolleys were old and could use a little TLC. This particular Countdown was not exciting; the exterior was tired and as I walked in the entrance was crowded for a small space. Floors were clean in most places, but missed the occasional area and the floor itself needs to be replaced. There were a lot of in-store promotions and probably too many in the wine ailse given the space. Fridges, freezers and shelving were acceptable standard. In the far corner, there was a lot of random products that appeared to have no home and made this part of the store lack purpose. The store on this day was under staffed, and this was reflected in the staff attitude at checkout. Overall, this is an older store, tired and in need of attention.
College Hill
Richmond Rd
Williamson Ave
SCORE 5 5 4 3 2
COUNTDOWN GREY LYNN CENTRAL: C 144 WILLIAMSON AVE
FF Grey Lynn NW Victoria Park CD Grey Lynn CD Grey Lynn
SHOPPER EXPERIENCE (Max 10 pts) INCLUDING: From carpark to entry to exit - overall shopper experience.
CD Ponsonby
Williamson Ave Westmoreland Rd
SCORE
FF Grey Lynn NW Victoria Park CD Grey Lynn CD Grey Lynn
10
College Hill
Richmond Rd
Williamson Ave
9
7
3
10
HOW THEY SCORE (Max 200 pts)
CD Ponsonby
Williamson Ave Westmoreland Rd
SCORE
FF Grey Lynn NW Victoria Park CD Grey Lynn CD Grey Lynn College Hill
Richmond Rd
Williamson Ave
172: B
108: C
196: A+ 195: A+ 183: A
TOP SCORE
A+ Exceeded shopper expectations to provide the gold class of shopper experience A
Meets all shopper expectations across areas rated
B
Meets most of shopper expectations across areas rated
C
Basics covered with some extras but not all shopper expectations met, improvements required
D Attention needed to areas rated, poor overall shopper experience E
TIM BASTIN
BREAKFAST & SNACKING Business Manager, Countdown
Most people would know the famous P’s of retail – Price, Product, Packaging and Promotions. However, Tim Bastin has a different set – People, Passion, Pride and Perseverance. It’s this second set which must be mastered in order to get the most out of a career, he told SupermarketNews. With two parents in the retail industry, it was no surprise when Bastin took his first job at the age of 16, an after-school gig at Countdown New Plymouth. While enjoying business studies and economics at high school, he turned
Poor level of achievement in shopper expectations across areas rated
Coupled with the great team environment and amazing workmates I’ve had, this has been the only industry and company I’ve considered working in. down the opportunity to study at tertiary level, instead choosing an onthe-job training role at Countdown as part of the Store Management Trainee program. “Coupled with the great team environment and amazing workmates I’ve had, this has been the only industry and company I’ve considered working in,” he said. Bastin worked through the different assistant store manager roles before becoming store manager of Countdown Upper Hutt at the tender age of 23. After a big overseas trip (“Nowhere compares to home, although Portugal did come close”), he returned to work in Support Office in the space management team before beginning category management more than six years ago. Bastin’s business manger role gives him a broader view and provides him with platform to analyse more and consider different ways to approach challenges. This is helpful in an industry where change is constant. “Quite often you don’t realise you have taken a fresh approach to a work situation until you take the time to
reflect on what has recently been achieved and how it was achieved,” he said. While Bastin believes that there is still a stigma in New Zealand about choosing retail, and especially supermarkets, as a career, he acknowledged the work done by Countdown to recognise potential in younger team members. “A relatively new graduate programme that has been doing a great job of developing a new talent pool,” he said. “My passion is seeing others achieve, so I’d like to continue to lead a team in the future.” Bastin is proud to have started his career at the store level, a foundation which will stick with him no matter what role he occupies. “Our customers needs are not too difficult to understand,” he explained. “Getting the basics right covers most of them.” Bastin’s current priority is being a great husband and dad to his two young daughters, with whom he spends as much time as possible. “It’s great to see them take on new experiences or to watch them learning and developing new skills.” n August 2017
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smafeature
MERCHANDISING SOLUTIONS
SUPPORTING BUSINESS
PRASH MOHAN, ONE2MANY
The ONE2MANY team has more than 100 years in collective experience in the sales, merchandising and distribution of product throughout New Zealand, and covers the country from Kaitaia to Invercargill. ONE2MANY primarily services the route trade; the local dairies, Four Squares, and mini supermarkets which are often overlooked by traditional SMAs The team is handpicked, with each one bringing something different to the table. “They can’t just have merchandising skills,” said Mohan. “They have to be cross skilled. I can teach someone how to merchandise, but
I can’t teach them to sell. Sales comes from within – it’s in your DNA.” ONE2MANY has four key elements which are the pillars supporting the business – people, service (merchandising), product (sales) and feedback (reporting). These elements also resonate with the clientele because ONE2MANY serves as an extension of their business. All activity is captured and available any time via customised reports. ONE2MANY is also in the process of developing its own app, which will deliver data directly to a centralised system and allow for quicker and easier reporting. “On the merchandising side, we are building a relationship with the owner,” explained Mohan. “After three or four cycles we begin to have a relationship and the respect is mutual – which means we can introduce new products, like the energy gum and mobile phones.” The introduction of Vodafone’s prepaid mobile phones is an example of a successful uptake of a product pushed by ONE2MANY. Many dairies have never traditionally sold mobile phones, but with the support of ONE2MANY the adoption rate is phenomenal. ONE2MANY is passionate and motivated by the opportunities within this sector. They have the skills, attributes and hands-on approach to get the job done. n
Achiever has been providing merchandising solutions for twenty one years. The frontline merchandising force is richly experienced in dealing with premium supermarket products, and together with amazing levels of energy and enthusiasm, the Achiever team has a real passion and excitement for the brands, together with a ‘both feet on the ground’ commitment. Getting products into stores is only the start of the process; the goal of Achiever is to get products into the hands of consumers, where their decision to re-purchase is paramount to success. Achiever has established long term relationships with premium clients with a variety of portfolios within the retail channels including grocery, health and beauty, frozen and chilled general merchandise and mainstream FMCG brands. Furthermore, Achiever employees are competent in occupational health and safety, and are site safe accredited. Merchandisers are in key stores up to seven days a week, which means they have eyes and ears in store at all times. The team is motivated and always striving for 100 percent KPI’s for all the products they support. This year, the company created a new design format which encapsulates a more modern and professional outlook in successfully achieving our primary business function of merchandising and sale support with a customer focus. The tick in the Achiever logo represents the tick of success in getting it right first time, every time, which the Achiever team always aims to achieve. Achiever has also completed a new website and invites you to visit at www.achiever.net.nz or email info@achiever.net.nz. n
Frustrated? If your supermarket representation leaves you frustrated with broken promises try something brand new. For superior supermarket representation contact Brian Phillimore 0274 419 050, brian@cha.co.nz or Richard Clulee 0275 435 323, richard@cha.co.nz. www.cha.co.nz
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Shopper marketing specialists since 1984
energi.co.nz August 2017
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smafeature CROSSMARK LEADS THE FIELD
Following a major restructure announcement last week, CROSSMARK, New Zealand’s largest field sales and merchandising company, has taken its commitment to customer service a step further by introducing unique, live reporting technology across its merchandising business nationally. StoreTrack is a CROSSMARK proprietary, web based and app enabled technology, which allows clients and campaign managers to track the status of campaigns in real-time, removing manual paper-based processes for greater accuracy and efficiency. StoreTrack lets clients track results and view photos as soon as a field team member reports their work. Reporting methodologies in the field merchandising industry have until now been notoriously labour intensive with the industry relying on clunky and outdated processes that don’t always reflect the level of detail involved in a campaign. CROSSMARK’s new mobile enabled technology provides unprecedented transparency with the ability to receive live updates through the StoreTrack Live dashboard.
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The merchandising edge that gets your products off the shelf and into the consumer’s shopping bag!
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CM
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CMY
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Achiever Merchandising & Sales Support Ltd Ph: (09) 638 9277 Fax: (09) 638 9275 Mobile: 021 224 7051 Email: info@achiever.net.nz www.achiever.net.nz
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“All CROSSMARK merchandising field teams have transitioned to the StoreTrack technology accessed via an app – recently the winner of the 2017 AsiaPacific Stevie Silver Award,” said Mark Damen, general manager – merchandising, CROSSMARK New Zealand. “Individuals can then receive assigned instructions such as job details, auto routing for efficient travel times, confirm campaign deadlines and verify how a campaign needs to look like in-store using embedded images. Once the campaign has been completed, live updates are instantly relayed to the StoreTrack Live dashboard for clients and CROSSMARK field management teams to review.” The StoreTrack app and StoreTrack Live dashboard can be tailored to reflect individual campaigns, such as setting daily or weekly tasks, uploading instruction templates, managing budgets or other store level installation details. The ability to upload photos is particularly beneficial as staff can see exactly what an installation needs to look like and can share a photo of what they have delivered. This visual reinforcement helps remove errors and allows instant problem solving with the ability for any issues to be fixed instantaneously. CROSSMARK has been using the StoreTrack technology in other markets and recently introduced the live StoreTrack dashboard to New Zealand. With the rise of mobile devices, the technology is a natural industry progression that is easy and intuitive to use. Clients and managers can let staff know when they’ve done a good job using the StoreTrack ‘like’ function. CROSSMARK’s StoreTrack technology is transforming the way field marketing agency staff operate, delivering greater value and forging more positive, collaborative and transparent partnerships with clients and n retailers alike. black_FMCG advert_art paths.pdf 1 23/06/16 8:36 am
advertorial
GROWING BUSINESSES IN NEW AND EXISTING MARKETS
DKSH is the leading market expansion services provider with a focus on Asia Pacific, helping other companies and brands to grow their business in new or existing markets. Publicly listed on the SIX Swiss Exchange since 2012, DKSH is a global company that is headquartered in Zurich. In New Zealand alone it employs over 300 staff and has its head office and distribution centre located in Palmerston North. The company’s best-selling products are very much household names, some of which DKSH have represented for over 20 years, including Peckish, Lindt, Mentos, Chupa Chups, Jack Link’s, Maille, EziPop, Werther’s, Quorn and Pfizer. “DKSH is the largest company in an industry we call market expansion service providers, known as sales and merchandising agencies (SMAs) in New Zealand,” said Paul Harris, general manager sales and marketing. “Our expertise and broad local knowledge, together with our infrastructure, enable us to better understand our clients’ needs and to deliver customised solutions to grow their business.” Aside from DKSH’s proven track record of delivering growth, businesses should consider a partnership as the company gets their clients closer to their market via real-time field information technology. “Our sales teams drive their client’s brands like their own without clients losing ownership or passion. We ensure availability and visibility across multiple channels with our strong grocery team and direct sales team in dairies, oil, airport, retail and convenience routes.”
DKSH offer a comprehensive portfolio of market expansion services tailored to their clients’ business needs. “The most important aspect of a partnership is the people, and DKSH’s sales teams are industry leaders. The sales growth and length of
client relationships speak to that. We welcome the opportunity to introduce DKSH and our high performing team to you and explore ways to grow your business,” said Harris. For more information contact Paul Harris at paul.harris@dksh.com or phone 021 902 588.
DKSH New Zealand Limited 279 Railway Road, Milson, Palmerston North 4470 Private Bag 11047, Palmerston North 4442 Phone +64 6 356 5323, Fax +64 6 356 4726 customerservice.nz@dksh.com, www.dksh.co.nz
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GET THE MOST OUT OF YOUR SMA
RACHEL CLAYTON, HEAD OF CLIENT DEVELOPMENT GAULTER RUSSELL (NZ) LIMITED / NUMERO (NZ) LIMITED
Companies are often considering, or currently using, an outsourcing model for their sales and merchandising support. Who are they using and why, what results are they getting, and how do they engage to achieve a great partnership? Rachel Clayton, chair of the FGC SMA Working Group, explains how to get the most out of your SMA. There are approximately 30 outsourcing agencies currently offering a vast array of services – sales, merchandising, demonstrations etc. If looking for a partner you focus on identifying those working within your channels and categories, the shortlist will appear relatively easily. The NZFGC website has a listing of the SMA member agencies which is a great starting point.
Once you’ve found a shortlist, the most critical area here is to understand your brief and what your outcomes need to be. Be very specific at this point – don’t shy away from the detail! If you can communicate clearly with the agency they will be able to develop a solution and price it accordingly. No one wants to pay for a service different to what they asked for, nor does anyone want to work for free! When issues arise between partners, the most common are is perceived performance levels. The company can’t understand why their agency is providing limited feedback and not reaching standard KPI’s. This is often due to a failure to establish clear expectations. Be clear about your requirements so that issues can be addressed at the earliest opportunity. The most productive relationships often come from treating your agency as part of your business. Whatever you would give your own internal teams, you should be giving your agency. Include them in your strategy planning sessions and any other meetings that are going to enable them to achieve your goals. They are your eyes and ears in the retail environment. Where possible take them to your head office meetings. This demonstrates a united front to the retailer and means that any changes to strategy can be developed on the spot, targets set and agreements can be made. Finally, it is all about cultural fit. The agency will be representing your brand and will be part of your business for, potentially, a very long time. Do your values and beliefs align; do you both have good communication and an easy rapport? Don’t hesitate to ask for references. This can be a very big decision, so take the time to fully investigate your partnership! www.gaulterrussell.co.nz / www.numero.co.nz n
ENSURING BRANDS EXCEL
GSD4U was established in 2015 after identifying a need in the marketplace for a company to thoroughly understand business needs and provide expertise in sales and merchandising execution. The head office team has over 40 years experience in sales and marketing, with extensive knowledge on best in class account and category management, data insights and executing with excellence on the ground. GSD4U is a boutique sales and merchandising specialist, providing unique and effective merchandising and marketing solutions. Being boutique suits the GSD4U philosophy, to not grow too big that they lose contact with their clients or understanding their needs. Developing relationships, both with clients and in-store, is central to the GSD4U ethos. Supported by a highly motivated and reliable sales and merchandising team and covering a national footprint, GSD4U has the resource and expertise to ensure clients’ brands excel in the market. GSD4U works on transparency and charges accurately for the work completed. Client specific reporting is provided in a timely manner, with a focus on sales growth by doing the basic right and well. Big enough to make a difference but small enough to care, GSD4U does just what the company name stands for – get sh*t done for you! n
Opmetrix enables the 1 | Powered by Opmetrix... Decades of experience Best of breed technology Highly skilled technologists Industry knowledge Around the clock support Excellent training Professional systems
2 | Perfect Store Call Real time information Reliable and robust technology Clear instructions for staff Back to base reporting Easy to use technology
3 | Competitive Advantage Well informed staff Empowered teams Up to date managers Better customer service Quicker response times
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CONTACT US TO FIND OUT MORE NZ: +64 3 374 6490 | sales@opmetrix.com |
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opmetrix.com
SHOPPER FIRST
The independent voice of the shopper is often unheard in today’s business environment. How do we ensure the data presents an objective view of what shoppers want? Shopper Tracker ANZ team who have been Retailers, heads of Sales, Category and Marketing, Insight Directors and Researchers. Shopper Tracker is the only benchmarking system built on what shoppers think, want and do. The programs deliver powerful shopper measures compared at retailer, category and brand level in Grocery, Convenience, Liquor, Pharmacy and Online. “Our quantitative measurement research program is based on shopper interviews, covering all major categories and retailers in one benchmarking process, which ensures it can be integrated into business plans,” said Mitesh Khatri, Program Director NZ. “It provides objective, comparative data on what category shoppers want, and how satisfied they are at a category level in each banner, together with a range of attitude and behavioural metrics”. This data is a powerful enhancement to category planning and drives effective joint working between manufacturer and retailers; for a lower level of investment than custom research. In New Zealand, Shopper Tracker covers 150+ categories across 40,000 plus shoppers surveyed annually. Shopper Tracker defines your shoppers to lead sales and marketing planning to be optimised and shelf activity to resonate at retail. Shopper Tracker is the leader in shopper insights to help optimise investment decisions, improve promotional efficiency, build persuasive proposals and joint business plans. For more information contact Mitesh Khatri on +61421 211 603. n
FOCUS IS THE KEY For over 25 years College Hill Agency has provided superior representation to New Zealand brand owners which have enjoyed growth and profitability two and a half times greater than their category counterparts. In 2017 College Hill Agency launched CH Edge, with a dedicated sales team specifically targeting chilled, frozen and fresh. This team will adopt the strategy of a limited principal portfolio, a dedicated team of chilled, frozen and fresh territory managers, an experienced KAM team and merchandising support. Growth of brands entering and NPD in the chilled, frozen and fresh area of the supermarket has been huge with many local manufacturers entering this market. This area provides great opportunities but different dynamics such as limited space and shelf life along with a different store buyer and margin expectations. Many agencies believe that one size fits all, whether it is an agency with a large base of chilled and frozen clients looking to move into grocery or vice versa. Focus is the key, so College Hill Agency has developed a new model to provide clients with an independent team that will focus
only on the ‘outside edge’ of the store. This will allow for flexibility, more action, and better results. That is why the new team is called ‘College Hill Edge’. Of course, the dry grocery team will also ensure your products are on-shelf and available, giving your brand exceptional coverage. It is always the College Hill goal to work in partnership with the brands they represent. The team wants to believe in the brand and the strategy so they look to work on helping to develop these aspects of the relationship. Communication is two ways. The College Hill team is your team. The new Edge concept allows for a separate team of representatives to operate but also to gain from the considerable leverage, systems and experience that College Hill Agency has developed This innovative approach is to ensure that each new client acquisition for the Edge team adds value to the business of the existing clients. By being selective in the brands accepted into the College Hill portfolio, valued can be added to all. If your brand could benefit from a fresh approach, more attention and exceptional support then give College Hill Agency a call on 09 360 6160. n
With new owners and an exciting new website, Storelink is your retail service partner of choice. When you choose Storelink as your outsourced retail service partner, you can be assured that our passionate team will take that responsibility seriously and represent your brands as if they are our own. Our services include: • Bespoke field sales and merchandising services • Integrated strategic and tactical planning • Maximum visibility for your brand through high store call frequency • Key Account Management
• Merchandising retail implementation • Display builds • Relays • Compliance reporting • Real time reporting • Demonstrations & Tastings
Read more about the ways in which we can tailor a solution to maximise your sales results at www.storelink.co.nz or call us 09 475 9039. Alternatively you can email us at enquiries@storelink.co.nz.
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smafeature TURN ON YOUR PACKAGING effect on those that experience it. AR is a technology that has been around for a while, but is just now starting to enter everyday life, and it is certainly something you can expect to see become mainstream.
WHAT DOES AR DO?
Bringing magic into fast moving consumer goods point of purchase. Maybe not real magic, but at least the clever use of Augmented Reality (AR) by Shopper Marketing specialists Energi to create customer engagement with their own brand on the front cover of a magazine has had a magical
AR transforms a 2-D picture into a dynamic, 3-D experience. It does this by turning a marker image (in this case the black circle) into a trigger that launches a computer-generated experience that is viewed through an app you download onto your smartphone or tablet. It blurs the line between the real world and the digital world. Before long AR will be even simpler when it is integrated into the common social media platforms. The marker on our cover triggers an animated, 3-D advertisement for Energi. It launches a crazy machine that opens up, sparks into life and delivers Energi’s promise to ‘Energise Your Business’. By clicking on the machine’s button
you are transported to Energi’s website to get a glimpse of the Energi customer experience, how to get in touch, and how they can help you use AR in your business.
WHY IS AR IMPORTANT?
AR is now moving from technologybased demonstrations that show off what is possible, into creative ideabased uses that enhance the experience of your customers or other people you want to influence. The beauty of AR is that it links physical things with anything computer-generated such as video, images, experiences or website content. • You can make your product show people videos or information on shelf.
• You can make your trade stand or display spring to life. • You can let people see what things in-store would look like at home. • You can animate people’s experience as a visitor or customer. • You can create Pokemon Go-like games to entertain. • You can add educational features to help customers cook your recipe, or build your flat-pack. • You can add an exciting digital layer of promotion, while keeping your stores clean. AR is being used more and more internationally by significant brands like Coca-Cola, Ikea, L’Oreal and Tesco. It is starting to make products more interesting and shopping more fun. And it is here ready for you to turn on, now. For more information contact lew.bentley@energi.co.nz. n
WE GET THE JOB DONE !
ONE2MANY is a boutique unconventional merchandising and sales company with presence throughout New Zealand. We operate across retail, petrol and the route channels. ONE2MANY is about, building relationships, merchandising and effective sales. The team collectively have more than 100 years’ experience in merchandising, sales and distribution. We are passionate and motivated by the opportunities within the different retail channels. Our hands-on approach means we get the job done! PEOPLE MERCHANDISING SALES REPORTING
KML RETAIL MANAGEMENT SERVICES FMCG SALES SPECIALISTS
For more information contact Prash on 029 912 5465 or prash.mohan@one2many.nz
www.kml.net.nz
Contact: ANDREW CLYNE
021 356 971 or andrew.clyne@kml.net.nz
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With over 25 years of experience in NZ, CROSSMARK combines a top performing management team with specialist and results-focused teams for all banners in Grocery, Pharmacy, Hardware, 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 • SALES • MERCHANDISING • SURGE & SPEED TO MARKET For more information please contact: JAMES MACVICAR, General Manager – Sales james.macvicar@crossmark.co.nz or
MARK DAMEN, General Manager – Merchandising mark.damen@crossmark.co.nz
Ph: 09 487 7020
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smafeature QMOTIVE QUEUING AND IMPULSE SALES SYSTEM
• Rapid Return on Investment • Impulse Sales • Easy Queue Management Self-serve checkouts are now featuring in all new Supermarkets across New Zealand, Australian, U.K and US chains, but are you utilising this retail space to its full capacity? Q motive is the complete modular queuing system that can be shaped in many different ways to make the most of your available retail space right up to checkout. Q motive not only controls customer flow, it’s also flexible so you can change
your display quickly and as often as required. Trigger impulse purchases by offering a wide selection of small, easy to grab products while waiting at checkout with a neatly organised display area. It will also enhance shopper experience by automatically making people follow their queue without confusion over who was there first. The return on investment has been described as ‘phenomenal’ by more than one of our happy supermarket owners. In Queue systems are been proven to lift impulse sales of these items by at least 40 percent. Some of our owners are also selling Co-Op space to brands. The space in bays and bins are widely sought after by brands as they know this system sells volume. There already a wide range of add-on components including bulk bins, magazine racks, hang-sell prong options, corner shelving and signage options to name a few. There is constant development of system components ensures it will continue to evolve with the changing FMCG retail environment. Maximise every inch of space with Q motive right up to check out. Please feel free to contact Richard on (09) 414 2214 or richard@nzpos. co.nz to discuss your store Q-motive opportunity. n
Liz Dedman ALLIANCE MARKETING
Continuing to make a difference, Liz Dedman has joined Alliance Marketing as New Zealand Business Manager.
New Zealand owned and operated.
Established sales and marketing company focused on consumer products.
DELIVERING THE DIFFERENCE. PROFESSIONALS WITH A PASSION TO SUCCEED.
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
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• 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 or mob: 021 986 121 pkenny@alliancemarketing.co.nz
After a five year stint in a sales and marketing role in Papua New Guinea, Liz Dedman returned to New Zealand and began work in the FMCG business. She has held a variety of roles, including territory management, national account and sales marketing management roles across a number of categories. As national business manager for Alliance Marketing, she hopes to bring sustainable growth to suppliers and retail customers. Technological advances and changing consumer demand present ongoing challenges to the retail market. “We have a unique retail environment in New Zealand, with overhalf of the market owned by one co-operative,” explained Dedman. “That creates a different set of needs from suppliers to service this market, and there is huge potential for SMA representation to dramatically increase.” Dedman identified a rise in retailers investing in data analysis, which leads to larger overseas companies with the resources to do so disadvantaging smaller New Zealand companies. However, this is partially offset by the innovation, creativity and uniqueness that smaller businesses can offer, although Dedman argues that it is getting harder for these suppliers to get a look-in. n
TRADE TALKS WITH Tony Trilford CEO, ROTHFORDS
The outsourcing model is extremely common overseas, with 50 percent of sales in the US attributed to SMAs and 25 percent in Australia, but only 12 percent in New Zealand last year. Why is this? What are international marketing trends or disruptions in the market that are impacting the SMA world? SupermarketNews spoke to Tony Trilford, CEO of Rothfords to find out. “I think more companies are considering the outsourcing model as agencies improve their professionalism and information flow to the client providing real time information that can be used effectively by clients to close distribution gaps, ensure compliance to promotional strategies and have full
transparency from the agency that their interests are being managed in the field. In the past a number of agencies have been loathe to provide clarity in feedback or even simply providing call cycles and how often stores nationwide are managed by their staff – this situation leaves the brand owner struggling to manage their business and undermines the credibility of the SMA industry. As technology and systems have improved the ability to provide real time info back to clients and provide excellence in execution of sales strategies has become more attainable by agencies and therefore more brand owners are feeling comfortable about considering the “leap of faith” required to hand over the field execution of their business to a third party. This is of course subject to any considered agency having invested in the ability to provide market clarity and do it rather than just say they can. It is very important that any brand owner considering an agency does the appropriate due diligence and is sure they are going to get what is promised as far as field cover, execution and reporting before choosing to engage– or they may well be in a very unstable position going forward. At Rothford we have invested heavily in this area over the past seven years and now every field operative whether that be our Territory Sales Reps or part time merchandisers is equipped with iPads linked to our Opmetrix sales system and are fully trained in competency so that we collect data in real time on distribution, promotional execution and shelf activity. This information is made fully available to our clients for all areas from Kaitia to Invercargill and the system also allows us to better monitor and manage the activities of our staff nationwide and provide comfort to our principals that their brands are being passionately driven in the field. For SMA’s in NZ to match the levels of representation seen in other countries the SMA industry per se and agencies specifically need to provide the market transparency and excellence in execution that brand owners expect.” n
gsd 4U Limited MERCHANDISING
SOLUTIONS
P: 09 275 9531 M: 027 473 4811 E: gsd4uoffice@xtra.co.nz www.gsd4u.co.nz August 2017
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STRONG PARTNER GROWTH
TONY PUPPYN AND ANGIE SAMUEL
The Storelink team live and breathe their values of integrity, excellence, accountability and teamwork, and are driving strong partner growth as a result. Storelink proudly represents a number of large FMCG companies, including Sanitarium, Lewis Road Creamery, Hanes, Griffins, and most recently have partnered with Real
Q
Foods representing Corn Thins. This exciting addition to Storelink’s dynamic partner portfolio is a reflection of Storelink’s dedication to delivering exceptional in-field execution, ultimately translating to strong results for their partners. Storelink values integrity, delivering results to their partners via transparent, honest and ethical business practices.
One way that Storelink’s partners experience this transparency is via insightful reporting that provides useable in-field insights. These insights can be translated into strategic and tactical initiatives, executed as per store and customer needs to create an edge over the competition. Working closely with their partners on translating insights into activity that drive great results is an aspect of the Storelink model which is intrinsically tied to accountability – the team take a view that they are all responsible for delivering results, both collectively and individually, delivering a high level of brand stewardship for all partners. Ultimately, the biggest driver of results is teamwork- both within the Storelink team, and through true collaboration with their partners. A number of Storelink’s Sales partners
are seeing growth rates of 2 – 3 times that of their categories, due in large part to the collaborative approach taken when executing in-field Sales and Merchandising activities. With over 76 percent (POPAI) of all consumer purchase decisions made in store, Storelink’s team of 425 contract merchandisers and 20 Field Managers collectively ensure that products are readily available for purchase. When considering the reduction in overheads, coupled with Storelink’s commitment to delivering growth, the appeal of outsourcing is a concept that is gaining momentum as margins continue to be squeezed. Coupled with our Health & Safety process and culture we’re a safe bet. To discuss your Sales and Merchandising needs and how Storelink can help you, contact the team on 09 475 9039. n
QUEUING AND IMPULSE SALES SYSTEM Rapid Return on Investment
by
Modular
Impulse Sales
Easy Queue Management
by
• Simple to assemble – light weight, durable, easy to install • Customised, modular units designed specifically for FMCG • Wide range of components for all product and packaging types • Easy to planogram and change by season, bulk sale or campaign
Return on Investment
• ‘Incredible’ was the feedback from one owner of Q-Motive • Potentially sell Co-Op space to brands per bay or bin • Future proofed – new components always being developed • Maximise return on every inch of space, right up to checkout
Shopper Experience
• Easily manage and direct the shopper traffic flow • Q-motive system is well proven to lift impulse sales by over 40% • Offer the shopper a wider range of products all the way to checkout • Do not be locked into one supplier’s brands – own and sell the space
INCREASE SALES • ENHANCED SHOPPING EXPERIENCE • QUEUE MANAGEMENT • FLEXIBLE MODULAR DESIGN
Contact Richard on (09) 414 2214 or richard@nzpos.co.nz
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smafeature BE SAVED FROM STUPID MARKETING
Like an enthusiastic puppy, clumsy marketing regularly gets companies into unnecessary trouble. Pepsi was mocked this year for an absurd advert about people dancing while protesting for peace and diversity. Cadbury was pilloried for removing the word “Easter” from a marketing campaign. Tesco was criticised for claiming cheap alcohol meant “Good Friday just got better.” Inanity and stupidity are a constant danger when you’re too enthusiastic or desperate to reach out, and cut-through to, your customers. New Zealand’s stupidest ever marketing campaign may well have been Telecom’s ridiculous “abstain for the game” concept; Sean Fitzpatrick in a pink fist bumper car? The reason these things happen is the customer disconnection caused by
what we call the “business bubble”. This is the disturbing distance between the lifestyles and opinions of the professional marketing world, and ‘ordinary’ people. A recent “AdNation” survey by ThinkTV revealed that the marketing world is heavily staffed by people 25-40. They are much more likely to have no children, to be single and to share a house. They don’t watch much TV, spend much time with family or have pets. They are four times more likely to take group exercise classes. They overestimate the public’s use of Facebook by almost 30 percent and over-estimate the public’s use of Youtube by 50 percent. That’s why they thought diversity and protest went with Pepsi, Easter didn’t have a story, and Fitzpatrick
GROCERY RETAIL WILL TOP OVER $18B THIS YEAR Revenue for the New Zealand Supermarkets, Grocery Stores and Convenience Stores industry is projected to total $18.7 billion in 201718, according to IBISWorld. Industry revenue is expected to have grown slowly in recent years, rising at a marginal annualised 0.3 percent over the five years through 2017-18. On first glance, the industry appears to have struggled over this period. A sharp revenue decline in 2013-14, however, undermined revenue gains made in subsequent years. Weak population growth and easing disposable income growth caused many industry operators to heavily discount prices to stimulate
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sales volumes, which remained largely flat during 2013-14. Positive consumer sentiment and rises in real household disposable income drove industry growth in other years over the period. Two major players dominate the industry and have gained market share over the past five years. The Foodstuffs co-operative acts through its members that manage stores across the country. Its major brands include New World, Pak’nSave and Four Square. Foodstuffs accounts for over 45 percent of the total industry, and is expected to have combined revenue of $8.5 billion in 2017-18, according to IBISWorld. Collectively, the company has gained market share over the past five years, due to its strong retail brands and expanding store networks. Foodstuffs’ retail operations are supplied by its wholesaling division, which is the largest player in the General Line Grocery Wholesaling industry. Woolworths (Progressive Enterprises) is the second-largest player in the industry, and IBISWorld expects it to account for just under 35% of industry OWNED
ALLIANCE MARKETING IN-STORE DEMONSTRATIONS DIVISION Since launching its in-store demonstration team late last year, Alliance Marketing has seen great growth in the brands that are demonstrated well in store. Managing director Paul Kenny said that with the expansion of the demonstration team and the new senior appointments within the Alliance Marketing team the company has continued to provide growth for its clients and outside businesses who have engaged our demonstration team. One key factor is the affordable cost to our principals to a dedicated demonstration team who know their products and are professionally trained in effective communication techniques by Liz Brash our National Demonstration and merchandising manager. “What started off being around 25 percent of Liz’s job role has quickly grown into 90 percent of the job. It is definitely bigger than I anticipated and has really grown exponentially for us,” said Kenny. “The key to our demonstration teams’ success is having sales people who can demonstrate.” As Kenny firmly stated, nobody wants to paying for unproductive lethargic non-engaging demonstrators handing out free food. A good demonstrator – adds theatre
LIZ BRASH
to the store and engages with shoppers offering not just a free sample but true insights to the consumer on the benefits of the product they are trialling. As Kenny stresses, for both the principal and the retailer it is about getting products in to the consumers’ trolley. “It’s not just about selling to – it’s also about selling through. What we are making sure of is that the retailers have the confidence that what sell to them we will use all our sales, merchandising and demonstration support to ensure every opportunity is given to maximising the sales.” n
would look good driving a pink fist. If you want your marketing to avoid these pitfalls, you need PR to be your watchdog. Or, for the cat-lovers out there, your cunning Burmese sidekick. Good PR understands the deep complexities of your customers, and society in general. It avoids trendy and simplistic campaigns. It knows what
people really want, not what they say they want. It pulls heartstrings in nonobvious ways. It doesn’t shy from controversy, but never courts it without knowing exactly how and why. Don’t stop using marketing, but get PR to run an eye over it first. Otherwise, you may be the next company being ridiculed. n
revenue in 2017-18, at $6.5 billion. Woolworths primarily operates in the industry through its Countdown store chain. The company has also gained market share through new store openings and the success of its Price Down program over the past five years. Heavy price discounting of branded products is commonplace in the industry and has caused industry-wide profitability to fall over the past five years. New Zealand’s major supermarket and grocery chains regularly discount branded products that are considered staples, such as packaged foods like bread and pasta, beverages, toiletries and cleaning products. As consumers regularly purchase branded products at a low price, private-label product penetration growth has been slow over the past five years. IBISWorld expects private-label sales to account for approximately 14 percent of total sales in 2017-18, totalling $2.6 billion. This figure is lower than in the Australian grocery sector, where privatelabel sales account for approximately 25 percent of total sales, totalling (NZD) $28.1 billion, and substantially lower than in the British grocery industry, where private-labels account for an estimate 40 percent of total sales. Many private-label products in New Zealand supermarkets are imported.
For example, approximately 60 percent of Countdown’s private-label products are imported, while about 25 percent of private-label products sold in Foodstuffs stores are imported. Supermarkets have also been altering their store layouts and product portfolios to cater for consumers with increasingly time-poor lifestyles. The major supermarkets have adjusted store layouts to allow customers to take shortcuts to the checkout, installed more self-serve checkouts, and introduced smaller shopping trollies and a greater number of shopping baskets to cater for customers looking to quickly top up on groceries. IBISWorld research found that industry players are increasingly stocking convenience foods and value-added meals to cater for consumers with less time to prepare and cook meals at home – a trend that has been mirrored in other international markets. Nathan Cloutman is a Senior Industry Analyst at industry research and analysis company, IBISWorld. n
Nathan Cloutman IBIS World Senior Industry Analyst
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