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November 2018 • Vol. 11 No. 11
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DEATH OF GROCERY? Meal kits have been increasing in popularity over the years. The paint by numbers version of cooking creates an element of ease and convenience to athome cooks who don’t have the time or expertise to whip up a show-stopping meal. Not only have online meal kits increased in popularity but supermarkets have also begun to stock more meal kit options on their shelves as a way to combat the competition. Packaged Facts recently revealed that the online meal kit industry had grown to become a 1.5-billion-dollar industry. “Meal kit delivery services are a specialised sector but widely disruptive to the food industry. New approaches to fresh food groceries are what consumers are most interested in, and what will determine the winners and loser of the current food industry,” said David Sprinkle, research director of Packaged Foods. The most recent partnership saw American supermarket chain Kroger acquire meal kit business, Home Chef for $700 million. New Zealand has recently seen a flurry of online meal kit companies pop up. My Food Bag was one of the first meal kit offerings while companies like Hello Fresh and Woop, while ready-made-meals like Plate Up have also joined the convenience race. “Meal kit growth is coming from multiple sources including traditional grocery and eating out. It’s a growing part of the way tens of thousands of Kiwi families are coming together around the dinner table each week,” explained Kevin Bowler, the CEO of My
Food Bag. Founder of Plate Up, Art Green thinks that the popularity of convenience meals is only set to increase, as they make dinner time more manageable for consumers. “I believe that technology, along with social and economic pressures are resulting in our society becoming more and more time poor. I see meal kits and ready-mademeals, especially healthy options, as a great option for those people that don’t have time to cook.” Local supermarkets have also started to embrace the online meal kits trend with some starting to implement their own meal kit options. “Since we launched ‘Simply Dinner’ meal kits in New World locations around the North Island, our customer response has been overwhelmingly positive,” explained Christofer Anderson, merchandise manager, chilled, frozen, deli and
ITALIAN DESSERT DOMINATING The international artisan gelato market has had an annual growth of four percent and a current value of 15 billion euros. As Italian style icecream continues to trend, brand Ghiotti is hot on its tail. After the company broadened its consumer base, making the move onto supermarket shelves in order to become more accessible to everyday New Zealanders, Ghiotti has continued to expand its range of authentic gelato offerings. The brand now has wider appeal with vegan and dairy-free flavours, such as its Lemon Sorbet, to meet the demand of health-conscious and free-from consumers.
With its expansive move, and Italian desserts at the forefront of consumers dessert itineraries this summer, Ghiotti will be ready to meet this growing consumer demand. n
NO MEAT MINCE Dunedin based business The Craft Meat Company has launched a new meat-free mince in an aim to target Kiwis that want to reduce their meat consumption or not eat meat at all. Recent research shows more than 30 percent of Kiwis describe themselves as actively looking to reduce their animal protein consumption, typically having a ‘Meat Free Day’ at least once a week. “It’s this new flexitarian consumer segment that we are primarily
bakery for Foodstuffs. While the online delivery of meal kits may take a small percentage of sales from supermarkets, consumers still need to buy their staples from stores. But if supermarkets can adopt this consumer trend, then the impact may be even less. For the full article visit www.supermarketnews.co.nz n
WOODBURN ACQUIRED Taranaki family run business Green Meadows Beef has acquired the Woodburn Venison brand. The smallgoods company has been run by Sally Haslett for the past 18 years in the Hawke’s Bay, but production will be moved to New Plymouth from November 5, where the other Green Meadows Beef products are produced. Green Meadows will continue the same product lines, so customers can rest assured their favourite venison burgers, meatballs and sausages will not disappear from the shelves. Managing Director of Green Meadows Beef, Nick Carey, said the team is excited to expand into venison. “Sally has done an incredible job growing Woodburn Venison from the ground up, and we are grateful she will be staying on with us for a few months to manage the transition,” said Carey. Green Meadows Beef was founded in 2012 by the Carey family. n
targeting, although, of course, vegans and vegetarians will also be key consumers.” The new No Meat Mince is the first of the alternative meat range to be launched and closely resembles traditional mince. It is designed to be cooked into meals exactly as regular mince would. “In some instances, you can’t even tell whether it is meat or not. We are seeing a significant rise in global demand for alternative proteins, and the New Zealand market is now experiencing a massive increase in vegan and flexitarian consumers.” n
editorialcomment NEXT LEVEL CROSS-MERCHANDISING Sarah Mitchell Editorial Director
sarah@reviewmags.com
Cross-merchandising is a well-known strategy to boost sales by placing complementary items together in-store. However, it seems to be a missed opportunity in grocery retailing today. Burger buns displayed with the tomato sauce and mustard, pizza bases with the toppings, cleaning cloths with product, pasta sauce with pasta and a cake tin with cake pre-mixes. It seems obvious, but are retailers doing enough? If customers come across pizza bases, they almost certainly would need the sauce, toppings and cheese, but crossmerchandising doesn’t have to be so obvious. Shoppers are making more trips to the supermarket, and with office workers looking for convenience in the metro stores, placing a cold beverage next to the food-to-go
diarynotes
counter can boost sales dramatically. Careful planning and research will show customer preferences and seasonal trends and pair items that are often put in use together to maximise revenue. Helping the shopper envision the product or dish in their home by displaying related items using images and displays can seal the deal when considering a purchase. A good example of this is Shulman Produce, a grocery retailer that has seen great success in cross merchandising its sweet onions alongside other items such as fresh deli meats like turkey or ham. Keeping up with trends both here and overseas has proven effective in particular for the tea category, and while the old tea and a biscuit is tried and true, a newer, trendier version is placing traditional teas next to trendy flavours, placing top-sellers next to fruit teas or decaf coffee. By placing potato chips next to carbonated beverages, sales of soft drink increased nine percent, while chips stayed the same. Produce shoppers in a grocery store in the USA sampled newseason apples with cubes of cheddar
cheese, a impulse purchase experience that boosted sales of both. “We see huge jumps in sales when we put cheese in produce, particularly cheese and pears,” said Debbie Harris, cheese merchandiser for the supermarket. Cross-merchandising is a much bigger opportunity than just shifting product from one aisle to another, it’s all about creating a theme that gives customers an experience or inspires them. When pulled together, Crossmerchandising can drive more sales and higher profits. In this issue the team looked at cross-merchandising in New Zealand and what’s happening overseas.
December 10 - 12: SIAL Middle East, Abu Dhabi, United Arab Emirates.
March 19: Emerging Leaders Forum 2019, Eden Park
January 27-30, 2019: ISM, Cologne
April 2: FMCG Expo 2019, Auckland University
February 20: Building Diversity in Your Business Diversity Works
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
Enjoy the issue.
For more exclusive feature articles and trends, be sure to sign up to our weekly e-newsletter. It’s free. www.supermarketnews.com and click the Newsletter tab at the top.
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May 15: KAM Networking, ASB
departments
01 News 11 Best of What to Stock 20 Store Of The Month 22 Back to School Feature 27 Functional Feature
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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 2018
PUBLISHER Tania Walters, tania@reviewmags.com
EDITORIAL STAFF Caitlan Mitchell, caitlan@reviewmags.com Georgina McKimm, georgina@reviewmags.com Mark Fullerton, mark@reviewmags.com
GENERAL MANAGER Kieran Mitchell, kieran@reviewmags.com
ADVERTISING SALES Felicity-Anne Flack, felicity@reviewmags.com
EDITORIAL DIRECTOR Sarah Mitchell, sarah@reviewmags.com
ONLINE SALES Georgia Saywell, georgia@reviewmags.com
CHAIRMAN Peter Mitchell, peter@reviewmags.com
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Suite 9, Level 3, 20 Augustus Tce, Parnell, Auckland PO Box 37140 Parnell, Auckland Tel (09) 3040142 Fax (09) 3772794
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
November 2018
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news
THE $1800 JAR OF HONEY Mānuka South is selling jars of honey rated UMF 28+ for $1800. A UMF is a Unique Mānuka Factor, as gradings usually go from 5+ through to 20+. The company’s honey is rated higher due to its rarity. It comes from areas in manuka-dense Northland, where the plant flowers for only six weeks each year. It’s so hard to get to the product that some hives
DAVID VS GOLIATH
asking consumers to try a “nicer block,” which has been construed as a play on words targeting Nice Blocks, the David to Fonterra’s Goliath. Nice Blocks founder James Crow said the brand laughed off the initial Kāpiti ad, which said “Nice Ice Baby,” but the next one – “Try a Nicer Block” – seemed a little more pointed. “We thought, ‘hang on, Fonterra, what are you planning here?” Kāpiti has stated it sees where Nice Blocks’ concern comes from, and it won’t use the wording going forward. That being said, it will take some time for the material to leave the market. “To actually stop their overall marketing campaign now will cost them money,” said Crow. “To let it go on unchallenged could certainly affect our sales.” Crow points out that a company the size of Fonterra has the resources to be just as nice. n
Fonterra has come under fire for using similar phrasing to Nice Block’s advertisements. Local brand Nice Blocks was founded in 2010 and sells ethically-sourced ice blocks. Fonterra brand Kāpiti recently launched an advertising campaign
and beekeepers are moved in and out via helicopter. Sales manager of Mānuka South Sam Haines has said only 300 jars of 250g will be sold. At $1800 a jar, the honey will bring in $540,000. Most jars have already been pre-sold to retailers, so Haines is confident they will sell. At the price, a piece of toast made with the honey could be worth around $50. n
GROW THE MO Pringles is on a mission to inspire Kiwi men to put down their razors this November in support of Movember. The brand is encouraging men to take a moment to check their health and wellbeing. While Pringles has been supporting the charity and helping to raise awareness for men’s health for the past ten years, this year the brand is proud to support the initiative by donating $10,000 to the charity. Pringle’s spokesperson, Ben O’Brien said that he’s delighted to partner with such a reputable charity that focuses on men’s health issues across the country. “Men all over the world aren’t talking about their health
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and well-being enough, particularly here in New Zealand. We’re thrilled to partner with Movember to shed light on these issues and do our part in supporting this great cause.” Robert Dunne, the Movember spokesperson, believes that Pringles’ contribution will help to support projects and raise men’s health awareness amongst Kiwis. “We would like to thank Pringles for the generous donation which will significantly help fund programmes dedicated to helping New Zealand men live happier, healthier and longer lives.” n
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November 2018
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LEGAL LIFE AT FOODIES
Working as an in-house lawyer in the legal team at Foodstuffs is about being passionate about what we do, the Co-op and the grocery sector. What I love about our business is the ‘can do’ attitude and the passion of our operators.
Julian Benefield
Associate General Counsel, Foodstuffs
Disrupt your category. Re-package. To make an impact with packaging, Hubbards use Onfire. If you’re looking for hot new design ideas, call Sammo Allan on 09 480 2036. www.weareonfire.co.nz
Branding & Packaging
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Foodies is big enough to make a difference to the lives of New Zealanders, yet we’re small enough that you can genuinely get to know our owners on a personal basis. The Foodies Legal Team handles all legal and compliance functions of the Co-op. On a day-to-day basis this could mean us working on all sorts of things, including marketing and alcohol law, tech and privacy, helping our owners through change in supermarket ownership transactions, media queries, property deals, and guiding the business through crisis management. We also work on key contracts with our supplier partners and help out social business Eat My Lunch, in which Foodstuffs has proudly invested. To be effective as a small team we need to be lawyers that are commercial, resourceful and ‘in it together’, and we need to take a real partnering approach. We are all driven to help the co-op and our operators manage their legal risk so that that our iconic Kiwi brands and stores remain strong and protected. We have helped the Co-op tackle plenty of things in recent years. We have been through one of New Zealand’s biggest mergers, completely changed our IT platform and entered the online space. One initiative the Foodies Legal
Team has helped on this year that we are particularly proud to be involved in is the launch of the Foodies Foundation. Sometimes life has a habit of throwing curve balls that we might not be equipped to deal with it, so the Foodies Foundation was set up as a central vehicle to help our Foodies family in times of hardship (e.g. terminal cancer, natural disasters). It is a Trust funded by Foodies people to help Foodies people in times of need. The Foodies Foundation is at the heart of the Co-op. It’s strongly aligned to our purpose and to our values being in it together and being courageous. I have been privileged to be involved with the Foundation as a trustee. Since the Foundation was launched, we have already had to deal with some devastating personal circumstances, which really do put your own perceived life challenges into perspective. In the midst of loss and tragedy, it has been great to provide some financial relief. To this end, we are working hard to drive fundraising initiatives and grow awareness for the Foundation to ensure we are in a position to keep helping out our Foodies family in times of need. If you want to learn more about the Foodies Foundation and see the video, visit www.foodiesfoundation.co.nz n
techbytes ROBOT SUPERMARKET
Sedano’s and e-grocery startup Takeoff Technologies have teamed up to create a robotic supermarket. Takeoff plans to launch a local fulfilment centre to serve 14 of Sedano’s supermarkets in Miami, US. It will also offer pickup services to customers of the grocery store. Customers place orders using a mobile app, which are processed by Takeoff’s automated facility. The robots can assemble up to 60 items in mere minutes, a fraction of the time human labourers take. Sedano’s operates 34 stores in Florida. Takeoff is working with five more regional and national US chains to deploy further automated fulfilment sites next year, giving the fledgling grocery e-commerce market a tool to help it grow. n
AI IDENTIFICATION
Facial recognition will be implemented soon in the UK to verify shoppers’ ages when buying alcohol and cigarettes. Digital identity app Yoti has partnered with US technology company NCR to create self-serve check-outs integrated with an AI-powered camera, which estimates the age of shoppers. This is an added level of automation to the check-out process, reducing the need for staff intervention. The facial recognition system will provide a hassle-free shopping experience, freeing up staff and cutting down queues at self-service checkouts. The technology does not require any pre-registration, and any visual information created about users will not be retained after their purchase is made. n
HIGH-TECH WAREHOUSE
Walmart is set to open the distribution centre of the future. The 2020 project will be US giant Walmart’s first high-tech distribution centre. The new centre is designed for movement of perishables and will be capable of moving 40 percent more groceries than a traditional distribution centre. Machinery will do the heavy lifting, including an algorithm that quickly
determines how best to palletise an order. Walmart has described the process as “sort of like a game of Tetris, but with apples and ice cream.” The technology maximises pallet efficiency, so trucks used to transport the goods will be able to fit more on board. This will ultimately reduce transport costs, saving money for both Walmart and consumers. n
GOING CARBON NEUTRAL Danish emulsifier producer Palsgaard has made its Netherlands site fully carbon neutral with the recent installation of 840 solar panels. The Dutch factory is now running entirely on renewable energy, reducing its emissions as well as its reliance on external sources of electricity. Palsgaard has said if it continued to use fossil fuels the CO2 emissions might have reached 1.3 million kg per year. The company aims to be carbon neutral at all its sites. It first used heat recovery techniques,
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November 2018
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GIZ MILLS
Fitout Project Manager, Foodstuffs South Island
Growing up in South Africa, Giz Mills dreamed of one day being a professional sportsman. “I always thought being a professional sportsman would be the best job. Doing something you love and making a living off it,” said Mills. In 2003 Mills made the move to the Land of the Long White Cloud, where he took up residence in Whangarei for six months before moving down to Christchurch. Still unsure of what the future held Mills decided to do a diploma in Mechanical Engineering at the Christchurch Polytechnic Institute of Technology (CPIT) while working parttime for his dad restoring classic cars. “I had no idea what I wanted to do when I finished high school so went out and got a job straight out of school. Now looking back I think the
restoration work I did helped me a lot with what I do today.” While studying at CPIT Mills found a passion for drawing and design, so in 2006 when a position became available at Foodstuffs South Island, he applied. “I loved every minute of it as I got to design stores from scratch, be involved during the construction and see the design through to the opening.” In 2013 he a moved to Foodstuffs South Island’s Fitout department, where he had the opportunity to be more hands-on and involved in the procurement and installation of the plants and equipment. “I enjoy being involved in the final stages of a new store fit out. I like seeing things go from concept to reality. Being given the freedom to come up with ideas and being supported to follow them through.” Bringing a fresh new approach to the role Mills was able to overcome challenges and see the bigger picture. “The work comes in from all different angles which can be challenging and deciding what things to prioritise can also be tricky. But things are not as bad as they first seem, sometimes the answer
“
is right in front of you. So, my approach is to stop, take a step back and try to get a wider view of it all.” To guarantee that customers are kept happy, Mills draws upon his strengths that he gained while working for his dad on classic cars. “My attention to detail and the ability to visualise the finished product are strengths I have gained throughout my career. I make sure that the people I’m working with can trust me with their vision and that it will be completed to a high standard.” In the coming years, Mills hopes to tidy up and streamline the workplace. “My goals at work are already pretty much set for me with what projects are in progress or coming up. Personally, my goals are to do more of the things that make me happy.” As for future endeavours, Mills has plans to travel more with his wife Laura as his parents did while he was growing up. “I would really like to go to Canada next and I’d love to go back to Ireland and Scotland. Laura and I love traveling and find it very rewarding. It really makes you appreciate what a great country New Zealand is.” n
I had no idea what I wanted to do when I finished high school so went out and got a job straight out of school. Now looking back I think the restoration work I did helped me a lot with what I do today.
”
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beveragenews ARTISTIC NEW LABEL
Family-owned Australian winery Taylors Wines has commissioned new label artwork from contemporary artist Catherine Abel for its Promised Land collection. The collection is award-winning but inexpensive, and the new label artwork communicates a sophisticated product that’s down-to-Earth. The design blends art, nature, and wine into a lush collage of foliage with stand-out use of white space to create a busy yet clean look. Abel is known for her striking oil paintings, and her detailed work on this piece merges the heritage of the wine with the artistry of the winemaking process. The design is focused around Taylors’ iconic seahorse, a label mainstay since the brand emerged two decades ago. When digging the first dam on the property the Taylor family found fossilized seahorses, which they took as a symbol of the land’s fertile promises. n
A ROYAL CHANGE
Karma Cola unveiled a very limited-edition look for their Gingerella drink in late October. In celebration of the Duke and Duchess of Sussex’s visit, the company turned its bottles’ Gingerellas into Ginger Fellas. Only a hundred bottles bearing Prince Harry’s face were created, and the brand hoped the Prince himself would find one. Karma Cola’s Gingerella drink is a certified organic ginger ale made with ingredients sourced from the Forest Garden Growers Association in Sri Lanka. The popular Gingerella drink is ideal for hot summers, and available for retail in packs of six as well as in individual units. n
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FOR ADULTS Coca-Cola has released a drink designed for the “adult palate,” consisting of classic Coke blended with coffee. Lucie Austin, marketing director at Coca-Cola Australia, said the blend was made for social settings. “Coca-Cola Batch Blends have been crafted for the curious mind and those after drinks with more adventurous flavours,” she said. The new blend contains 35mg of caffeine for 250ml serving, which is only slightly more than the same serving of regular CocaCola – so the drink’s not as heartstopping as it sounds. n
WORLD FIRST Melbourne business The Cannabis Company has released a world first: a gin distilled using cannabis terpenes. It took several attempts for the gin to taste right, according to chief marketing officer Cormac Sheehan. “From day one we didn’t want novelty gin,” he said. “It had to stand on its own two feet as a gin, regardless of the cannabis element.” The result is the Myrcene Hemp Gin, a reference to the most abundant terpene in cannabis. Terpenes make up essential oils of plants; so
myrcene is “essence” of cannabis. The Cannabis Company is headed by CEO Dr David Stapleton, a senior researcher at the University of Melbourne. His work has been published in more than 100 scientific papers, and his use of cannabis and hemp in products is done to allow the plant’s benefits to become widespread. Only 300 bottles have been released, but more may come soon. n
best of whattostock REMEDY KOMBUCHA Remedy kombucha is a fizzy, live-cultured drink that’s not just tasty but actually healthy. It’s also chock-full of live cultures and organic acids that are good for gut health and overall wellbeing. Better still, Remedy naturally contains no sugar and is the only kombucha that has the tick of approval from ‘I Quit Sugar’ to prove it. This is because the company makes Remedy the old-school way, fermented in small batches using a long-aged brewing process which removes all of the sugar. Customers can rest assured that Remedy Kombucha is 100 percent all-natural,
raw and unpasteurised, certified organic, vegan, gluten-free, fructose-free and paleo friendly. Remedy Kombucha is available in Original, Ginger Lemon, Raspberry Lemonade, Cherry Plum, Apple Crisp, Hibiscus Kiss and now in two new flavours – Ginger Berry and Lemon, Lime and Mint.
A family-owned company of Mediterranean origins, Giannis Michaelides, set sail from Cyprus in 1966 and arrived in Christchurch with only the clothes on his back, a wonderful smile and a healthy appetite for leavened bread his mother had taught him to make. Twenty-seven years later and going from strength to strength, Giannis now has an extensive range of Pita Bread, Wraps, Pizza Bases, Tortilla and Naan bread products that are available in the New Zealand market. They have also recently launched a gluten-free pita bread
offering and will continue to bring innovation to the pita bread and flatbread category into 2019.
Fresh West’s Sweeties are uniquely shaped, surprisingly sweet, and versatile. Thanks to their thinner skin, they have a softer bite, plus there are hardly any seeds inside and add a surprisingly sweet accent to a wide variety of hot and cold dishes. Sweeties are sweeter than regular capsicum and will have shoppers hooked after their first bit, even kids. Quick and easy to prepare and ready in minutes, Sweeties can be cooked in stir-fries, grilled, roasted, stuffed or served raw in salads and with dips. Summer is
coming, and these sweeties are a sure hit for snacking and BBQs.
For more information contact deva.dhar@remedydrinks.com or call 0800 566 282.
GIANNIS
For more information contact marketing manager Simon Rangihaeata on 021 854 091 or email simon@giannis.co.nz.
FRESH WEST
For more information contact us at freshwest@xtra.co.nz.
BORN AND RAISED Born and Raised is a Christchurch-based K kombucha company which has a no-nonsense approach to ensure its kombucha is a supreme cocktail of goodness. The company’s kombucha is unpasteurised, twice fermented and uses only raw organic and Fairtrade ingredients. The kombucha is flavoured with Born and Raised’s own organic coldpressed juices including fresh turmeric, beetroot, ginger and cucumber to boost the health benefits of this functional beverage. Born and Raised Kombucha is packed with probiotics, minerals and vitamins B1,
B12, B6 and folic acid. A great soda alternative for kids and offering a cider taste and fizz for health-conscious adults.
For more information email info@bornandraised.co.nz or call Rebecca on 021 395 807
TURNERS AND GROWERS - BEEKIST There’s a new buzz on the Beekist® tomato vine, and it’s all about packaging. In a bid to tackle plastic pollution, T&G is saying goodbye to plastic punnets – and hello to cardboard punnets. The move will take 5.5 million plastic punnets off supermarket shelves and 100 tonnes less plastic that Kiwis will take home. Flavour packed Beekist® tomatoes are pollinated by bumblebees, picked by hand, packed in cardboard, and delivered fresh to stores – because the team at T&G believe the less tinkering you do to Mother Nature, the better.
For more information, please visit www.tandg.global or email info@tandg.global.
November 2018
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COMMITTED TO CHANGE
I joined Countdown at the beginning of the year and was welcomed into a culture where teams care deeply; both for one another and the Kiwi communities of which we are a part. We’re one of the country’s largest employers and we take that responsibility seriously. Lauren Voyce
General Manager Culture & People, Countdown
We know that around the world, too many young people are finding that, through no fault of their own, there are barriers to entry into the workplace. We believe this needs to change and we’re committed to changing that here in New Zealand by investing in developing young Kiwis. I’m really proud of our SEEDS programme (Students Entering Employment Developing Skills), which we introduced earlier this year. We work in partnership with ServiceIQ to bring secondary school students into Countdown stores one day a week over 10 weeks, so they can learn work and life skills and see what retail is really like! Since February 2018, almost 180
secondary students have taken part in the programme across 35 Countdown stores with several of them now permanent team members. A SEEDS Butchery Gateway Pilot has also been underway since July, with a number of students being placed in some of our South Island stores. Part of our team first culture means that our team’s wellbeing is an absolute priority. We’re continually reviewing and adapting our team policies to ensure we provide the right support and development opportunities for our 18,000-strong workforce. We’re working hard to be a flexible and supportive workplace, where our team are excited and inspired to come to work every day, and know that we care about them. We have introduced inclusive leader-ship programmes, implemented policies such as our Family Violence policy and Transgender Transitioning policy to support our team members
A PLASTIC-FREE UTOPIA The management of supermarkets and consumer goods companies has taken on quite a change in recent times – and there’s more to come. Katherine Rich
Chief Executive NZ Food & Grocery Council
After decades of grocers scurrying around filling boxes with shoppers’ orders, and decades more of them carrying plastic bags to the car, shoppers are back to filling and carrying their own bags made of jute or heavier plastic. That’s if they use a brick and mortar supermarket at all. More New Zealanders are moving online and having groceries delivered or opting for Click and Collect. All of this, of course, has to do with both doing the right thing by the environment and meeting consumers’ continuing demand for convenience in a seemingly time-poor world. The problem is how the two can co-exist, and that was a point mostly missed by a report published recently by Greenpeace on the “plastic pollution pandemic” and the part food and grocery companies play in it. They sent questions to the world’s nine biggest food and grocery companies, which all have operations in
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New Zealand (and which are members of the Food & Grocery Council): Coca-Cola, Colgate-Palmolive, Danone, Johnson & Johnson, Kraft-Heinz, Mars, Mondelez, Nestle, PepsiCo, Procter & Gamble, and Unilever. Between them, their products dominate our supermarket shelves. While their survey answers showed an impressive list of activities and commitments to reduce plastic across the board, the report was giving no credit, blaming the companies “for the majority of the throwaway products which sustain our modern ‘disposable’ lifestyle, and are the creators of much of the plastic pollution”. That’s a big claim, but it’s based mainly on guesswork because the report doesn’t have the figures – no one does. The fact is that these companies, and the industry as a whole, are constantly trying to find a balance between reducing their environmental footprint and meeting the needs of consumers looking for convenient, safe, fresh food and other grocery products. The companies highlighted are actually leaders working on recycling, reusability, and compostable packaging. Even the report acknowledges this. For example, seven of the OWNED
in a more comprehensive and holistic way than businesses have tended to in the past. The wellbeing of our team and our customers is really important to me; both physical safety and mental wellbeing. Last month, more than 100 of our team undertook extensive training across our logistics, stores, support office and senior management teams to train them in understanding the signs of mental illness, and how to approach and talk to team members who may be impacted. We also offer a dedicated confidential 0800 number available 24/7 specifically to support team, as well as a confidential email. Our
company also offers unlimited, free counselling for our team and their families that is 100 percent confidential and independent. I’d encourage all business leaders to consider how you can also support your own team’s mental health and wellbeing; this is something that we all have to be able to talk about more openly and without prejudice or stigma. As we near to the end of the year, we are now focused on ensuring all our team are safe and well as we head into the busiest part of our year. We’ve got a lot planned for 2019 as we continue our drive to put our team first. I look forward to sharing some of those plans with you soon. n
companies have committed to 100 percent recyclability, reusability and compostability of all their packaging by 2025, while the other two are 90 percent by 2020 and 100 percent by 2030. Many are committed to using 50 percent recycled content in their packaging by dates ranging between 2020-2030 and replacing hundreds of thousands of tonnes of packaging by using lighter materials. In New Zealand we have many local examples of this. Turners & Growers are moving all their tomatoes from plastic punnets into cardboard boxes, Procter & Gamble has a new range of shampoos in recycled plastic containers, and Earthwise is selling laundry powder in containers made out of old milk bottles. There are so many more. Given the circumstances, a real effort is being made – it’s just a pity Greenpeace doesn’t consider recyclability, recycling and compostability to be an alternative to using single-use plastic at all. So how does it suggest we reach a plastic-free utopia? As well as calling for the companies to move towards a complete phase-out of single-use plastics, and to eliminate unnecessary single-use plastics by the end of next year, it suggests they could: • supply systems so people can make beverages at home by carbonating water, adding syrups, and re-using the same bottle “for several years”; • offer a service where drinks are delivered in re-usable containers that
are refundable; • sell household and personal care products in containers that are refilled in-store; • offer bulk foods, with shoppers filling their own containers. But how practical is all that, and how would it change the weekly shop? For a start, they’re essentially saying “get a Soda Stream everyone”, which would virtually mean the end of the beverage aisle in supermarkets. And though having shoppers bringing their own containers has become a bit of a trend for some categories, that comes with food safety and major practicality considerations. There are also products where it’s hard to do that. For example, how would supermarkets dispense frozen peas? Everyone in the industry understands the need to minimise packaging, but common sense needs to be applied to meet the realities of modern life. Consumers want convenience, but they also want safe, fresh food and other groceries, because not everything can be put in cardboard, glass, or straight into a jute shopping bag. Short of turning back the clock to when everybody had their own home garden and bought everything in bulk, it’s going to be very hard to achieve a packaging-free world. Of course the industry is interested in making improvements, and we are, but some of the things being recommended are just too extreme. Like calorie intake, it’s a matter of balance. n
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o t e y b good ! s t e n n u p c i t s a l p
“JOIN US ON OUR SUSTAINABILITY JOURNEY” BEEKIST.CO.NZ
NEW ZEALAND GROWN BEEKIST ® and T&G are registered trade marks of T&G Global Limited
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Jamie Peters EARTHWISE
A proud Kiwi, Jamie Peters grew up in Auckland where he still lives with his wife and children. He was immersed in the grocery industry from a young age. “As a child, I remember being fascinated walking around Dad’s food manufacturing facility, where I’d help to merchandise the shelves in my school holidays.”
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ith a passion for sales and marketing, Peters quickly found himself working in the health and wellness industry developing ‘better for you’ products. Today, he still loves the fast paced nature of the FMCG industry. Peters purchased the Earthwise Group in 2010 which is based in St Johns, Auckland. What started out as an eco-friendly pioneering brand in a Waikato garden shed, quickly became one of New Zealand’s most trusted brands. “After purchasing the business we quickly became the entry-level environmental brand for everyday Kiwi families, offering safe, affordable alternatives to mass-produced chemical products.” In 2013 Earthwise was the first New Zealand manufacturer to be awarded the Deloitte Fast 50 Award, which recognised Earthwise as one of New Zealand’s fastest growing companies. “Winning the award and witnessing the organic growth of our products was a major milestone for the business.” Today, Earthwise has three brands, operates in over eight grocery categories and is sold globally in over 5,000 stores across Australia, Asia, USA, Europe and New Zealand. They are the market leader in environmental cleaning. Peters’ ultimate goal for Earthwise is to become a true household name in the environmental arena, both in New Zealand and globally, while remaining true to its core values of providing naturally effective, safe products that don’t cost the earth. “Environmental sustainability is at the heart of everything we do, through our use of plant-based components (grey water and septic tank safe), biodegradable ingredients (that break down into mineral and plant material which is better for the environment), recyclable packaging and a continuous focus on improving our environmental footprint”. OWNED
Earthwise has a direct partnership with Environmental Choice New Zealand and Sensitive Choice. “There is no governing body to carry out audits for the environmental cleaning category. However, we chose to partner with Environmental Choice New Zealand who is backed by the New Zealand Government and a member of the Global Ecolabelling Network. They perform rigorous audits and hold the highest accreditation within New Zealand. Earthwise has the biggest range of household cleaning and toilet products that are environmentally certified. Sensitive Choice strengthens our credibility of providing gentle formulations consumers can trust.” Earthwise also supports the City Mission, Mums and Bubs, House of Hope, The sheltered Worksop and the Neonatal Intensive Care Unit. Earthwise bottles are already recyclable, however, they are taking it a step further by introducing new bottles that are made from a minimum of 75% recycled plastic. Sourced from used milk, water and juice bottles, these new recycled plastic bottles are manufactured in New Zealand and have started appearing on supermarket shelves. Earthwise is working on introducing 100% recycled plastic bottles across its personal care brands, Earthwise Nourish and Glow Lab in the coming months. “We know that we can’t tackle the plastics issue alone and are thrilled to be part of the groundswell of change.” “We have joined other Kiwibased businesses by pledging to support the New Zealand Plastic Packaging Declaration, committing to have 100 percent of our packaging recyclable, reusable or compostable by 2025 or earlier.” Earthwise has also recently added to this by joining the New Plastics Economy Global Commitment, which will provide a platform for the company to collaborate with like-minded and passionate businesses towards a common goal of establishing a circular
economy for plastic. In the past 12 months, the plastics pollution conversation has accelerated. “It’s great to see 250 signatories join the same global movement to bring change to this worldwide issue.” However, Peters believes that New Zealand is still behind the global pace with regards to having the infrastructure and technology available to sort and process used plastic material for repurposing. “The largest barrier to this change is cost. It is more expensive to produce goods using recycled materials versus 100% virgin plastic. From our perspective, joining the New Zealand and global declaration movement to make critical change in the plastic arena far outweighed the cost. Caring for our world is at the heart of everything we do at Earthwise,” said Peters. Peters states there are two major misconceptions when it comes to recycling plastic packaging; that all plastic is recyclable and that all plastic is bad. “Realistically there are only two recyclable plastics in New Zealand; HDPE and PET.” The business is also encouraging consumers to repurpose existing packaging. For example it’s Baby Hippo range has a recessed slot that can be cut open and re-used as a children’s money box. This has been a big year for Earthwise with launching 75% recycled plastic bottles in market, joining the New Zealand and global plastic packaging commitments, receiving a nomination for Glow Lab New Product Development Of The Year Award at the Countdown supplier awards earlier this year (which delivered incremental sales and true innovation to the category) and also winning the Best Emerging Brand at the TVNZ-NZ Marketing Awards recently. Peters hopes these commitments will become a strong sustainable platform to help eradicate plastic pollution and accelerate the reuse of plastic into new packaging materials. n
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Dumpling Sauce
Kiwis are craving dumplings, as evidenced by the increasing number of dumpling restaurants, and the expansion of freezer space in supermarkets for dumplings. The new Lee Kum Kee Seasoned Soy Sauce for Dumplings is a delicious dipping sauce blended from the unique combination of light soy sauce, vinegar, garlic, chilli and sesame oil. Its mouthwatering savoury flavour is ideal for dipping all kinds of food, especially dumplings and Asian finger food. Both the Frozen Finger Foods, a fast-growing segment within Total Frozen Foods, and the Total Frozen Asian Foods segment have seen significant growth – proving the humble dumpling’s popularity with supermarket consumers. Lee Kum Kee Seasoned Soy Sauce for Dumplings is the perfect accompaniment for both these booming categories. Available in a 207ml bottle. Contact Acton International Marketing 0800 699 090
Low Sugar Granola
Cutting Sugar is the hot topic in the industry. The new Jordans Low Sugar Granolas contain absolutely no artificial ingredients and less than 5 percent sugar per pack, with just 2.9 grams of sugar per 100 grams. The range is avaliable in two great flavours: Granola Cherry and Almond and Granola Almond and Hazelnut. Jordans is stocked in Countdown and selected Foodstuffs stores. For more information contact your local DKSH representative.
Switching Things Up
Apple cider vinegar the hero ingredient of switchel, has long been used as a wellness and all-round health tonic for centuries. Greenleaf organics Switchel is certified organic, raw and unpasteurised, refined sugar-free and handmade in Auckland, New Zealand. Greenleaf organics use only live cultured ACV that contains beneficial pre and probiotics in each bottle. Each functional drink has its own unique purpose and benefit such as detoxification, anti-inflammatory, immunity building or aiding in efficient digestion. The range features five delicious flavours – Turmeric, Pineapple, Beetroot, Lemon or Grapefruit. For more information contact Chantel on 021 0844 6157 or email at chantel@greenleaforganics.co.nz
Mexican Mozzarella
Clevedon Buffalo Co. has released its new farm fresh Clevedon Buffalo Oaxaca to join the company’s award-winning cheese and yoghurt range. Nicknamed ‘the mozzarella of Mexico’, Oaxaca is a Mexicanstyle string cheese, made from delicate ribbons of fresh buffalo milk cheese, wound perfectly into balls by hand. Oaxaca cheese is natural, preservative-free and great for customers who have difficulty digesting cow’s milk cheese. Buffalo milk used to make the cheese contains 50 percent more calcium, 40 percent more protein and 43 percent less cholesterol than cow’s milk.
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Classic Kiwi Soda
Mac’s Soda has been working hard to concoct a kiwi favourite in time for summer. Bringing together the two iconic flavours of Cola and Hokey Pokey to create one delicious soda. Mac’s Soda Hokey Pokey and Cola is a refreshing Cola with an ingeniously kiwi twist. The drink is available for a limited time only.
A Sweet Twist
Simon Gault has once again made it easier for consumers to spice up their meals with the release of his new Gault’s Chipotle Ketchup. Made using only New Zealand vegetables with an added kick of smoked chipotle chilli. The latest release follows on from the success of Gault’s original 100% Sweetened By Veggies Tomato Ketchup which proved to be a hit when it was launched at the Auckland Food Show last year, subsequently selling out.
Christmas Eggs
Otaika Valley is gearing up for the festive season with the re-release of its popular festive egg packaging to help make Christmas that much more egg-cellent. Healthy and nutritious, the genuine free-range eggs in Otaika Valley’s award-winning Christmas carton are a holiday season essential. Whether whipping up a batch of meringues, a pavlova or three, or a special Christmas Day brekkie, customers will taste the difference using these free-range eggs. Otaika Valley hens enjoy an idyllic life roaming free on beautiful farms in Whangarei and Rotorua feeding on wholesome natural grains, ensuring the happy eggs produce good eggs. The Christmas range will be available in a 12-pack in all good supermarkets from 27 November. For more information visit otaikavalleyeggs. co.nz or email William Sandle at william@otaikavalleyeggs.co.nz.
Pulse Pasta
San Remo Pulse Pasta is made using flour from pulses including peas, lentils, chickpeas and borlotti beans instead of wheat to boost the protein content and other nutritional benefits. Just one serve of San Remo Pulse Pasta will meet nearly a third of the recommended daily fibre intake. Because San Remo Pulse Pasta is made using flour from pulses instead of wheat, it is also a good source of plant protein. It is also a great alternative for consumers who are allergic or intolerant to gluten as it is gluten-free. The following varietals have just been added to the existing Pulse Pasta range: Red Lentil Pulse Pasta, Chickpea Pulse Pasta and Green Pea Pulse Pasta. For any inquires please do not hesitate to contact San Remo Pasta on 09 980 1558.
Kiwi Icon Returns
Queen Anne has launched their very own version of the iconic Chocolate Fish. The range includes the original Milk Chocolate Strawberry Marshmallow Fish and a new Dark Chocolate Raspberry Marshmallow Fish. Made locally in its Christchurch factory using the traditional Queen Anne marshmallow recipe and richly coated in chocolate, these premium fish are gluten-free and contain natural flavours and colours. For more information contact Sarah at sarah@queenanne.co.nz.
Organic Creaminess
Rush Munro is New Zealand’s oldest ice cream producer. The Rush Munro story began in 1926 when English born founder, Fredrick Charles Rush Munro set up shop with his wife Catherine in Hastings. Over ninety years later Rush Munro is delighting New Zealanders with a new organic range. The luxurious ice cream is handcrafted in Hawke’s Bay to traditional recipes using organic whole milk and only the finest ingredients – for ice cream as it should be. The range currently is available in six tasty flavours.
Rosy Raspberry
The Collective has teamed up with another New Zealand chef as part of its successful Chefs for Good campaign. This year chef Josh Emett created a Raspberry and Rose yoghurt that consumers will be sure to love. The Raspberry and Rose Petal yoghurt delivers the perfect balance of tart and sweet with a hint of floral flavour. Real raspberries rose petal pieces and a dash of orange are combined with The Collective’s thick and creamy yoghurt to create a great summer treat.
Nuts About Breakfast
Pure delish have a new addition to its popular nograin-ola cereal range. The new Pecan, Coconut & Ginger Nograin-ola is a grainfree granola packed full of nuts, seeds and crunchy coconut, lightly spiced with ginger and vanilla bean. Being naturally free from gluten, dairy and egg, and suitable for those on a vegan diet, this new cereal will have a wide appeal. Pure delish is the market leader in super premium breakfast cereals in New Zealand with a 54 percent market share. With global trends heading towards real and better-quality foods, pure delish knows that the premiumisation of traditional food categories is here to stay and set to continue growing. Please contact Amanda Macdonald for further information at amanda@puredelish.co.nz or phone 09 5745701. November 2018
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Bye Bye Dairy
Nourishing Flavours
Inspired by recipes from afar, Naked Kitchen Wellness Bowls use authentic, wholesome ingredients to keep consumers nourished from the inside out. The Naked Kitchen Okinawa Wellness Bowl with brown rice and seaweed takes its taste inspiration from simple flavours that are found on the island of Okinawa. Gluten-free and vegetarian, the Okinawa Wellness Bowl is full of wholesome ingredients including brown rice, tofu, wakame seaweed, wood ear fungus, baby spinach, kale, miso, spring onion and shiitake mushroom. The Naked Kitchen North Indian Wellness Bowl with cauliflower and turmeric is influenced by the Ayurvedic recipe for Kitchari and made using healthy ingredients such as brown rice, moong dal (split yellow mung beans), cauliflower, potato and white quinoa.
Kiwis can rejoice as Ben and Jerry’s has finally brought its non-dairy, vegan-friendly pint range to New Zealand. Ben and Jerry’s Non-Dairy is now all Ben & Jerry’s stockists, including good supermarkets, convenience stores and petrol stations nationwide. The two-almond milk-based varieties in Ben and Jerry’s Non-Dairy range are certified vegan and Fairtrade. The new range features two delicious flavours – Coconut Seven Layer Bar contains seven levels of luscious coconut heaven and P.B. & Cookies is a fusion of crunchy peanut butter swirls and chocolate sandwich cookies.
Refreshing Packaging Dairy Free Dessert
Being dairy free is no longer the result of an allergy it’s a lifestyle choice which is why the team from Lick Likes have launched a new range of dairy-free ice cream. The range includes three new flavours – Tumeric, Chai and Ginger, Almond and Raspberry, and Chocolate and Boysenberry. Both the Tumeric, Chai and Ginger and Chocolate and Boysenberry flavours are non-GMO, gluten-free, veganfriendly and free from artificial colours, flavours and preservatives, while the Almond and Raspberry flavour is gluten-free and reduced fat.
Cadbury has launched new Freddo bars into the Cadbury Dairy Milk Freddo range. The iconic frog is available in two different flavours – the Cadbury Dairy Milk Freddo Milky Bubbles Bar and the Cadbury Dairy Milk Freddo Milky Top Bar. The pieces are portion friendly making them easy to share.
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Honey Milk
Lewis Road Creamery has created a new sweet milk to add to the family. Made from New Zealand multi-floral clover honey and whole permeate-free milk, the white milk has a naturally sweet twist that can be enjoyed in range of different ways. When added to a bowl of cereal or a cup of coffee the milk adds a touch of natural sweetness with having to add extra sugar.
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Fresh Life’s range of nuts, seeds and dried fruits has a new look. The new packs now make it easier to find ways to add texture, flavour and a nutritional boost to any meal or snack. Each pack comes complete with how many cups of nuts, seeds or fruit are inside – super handy when you’re shopping and need a particular amount for a recipe. Even though the packaging has undergone a big change, Fresh Life’s great quality ingredients inside are still the same.
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Ultra Premium
Kiwi ice cream maker IndulgeNZ has launched a stunning line-up of ice creams, sorbets and desserts. Each one is lovingly hand-crafted in Waihi from all-natural quality ingredients – including organic A2 milk – using traditional artisanal techniques. IndulgeNZ artisan ice cream starts with milk sourced from Matamata’s award-winning Jersey Girl Organics, the team at IndulgeNZ then adds carefully selected single source ingredients such as organic sugar, 100 percent Pure Heilala bourbon vanilla beans, honey-infused Turkish figs, dark Belgian chocolate and raisins soaked in rich dark Cuban rum. The ice cream, sorbet and desserts come in a range of exceptional flavours.
Biltong Joins Jack’s
Jack Link’s is the world’s leading meat snacks brand in many international markets; most notably the massive US market where Jack Link’s holds around 50 percent market share. Jack Link’s now has an exciting addition of two flavours of biltong to add to its range of meat snacks; Traditional and Chilli Biltong. The packaging is made with a high barrier film with the usual premium look and feel, the Jack Link’s brand is noted for, but the Biltong range is more boutique and natural which is supported by the ingredients listed on the back of the pack. Jack Link’s Biltong is less sweet than Jack Link’s Jerky with less sugar which will please many meat snack consumers.
90 Percent Natural With 90 percent natural ingredients it’s no wonder Garnier is excited to introduce its new all-natural BB cream. The groundbreaking formula uses Vitamin E and green tea extracts to enhance and even the skin tone. The BB Cream contains no parabens or silicones and comes in a 100 percent recyclable cardboard box.
Kiwi Classics
Tip Top has released two fun new flavours in time for summer – Cola Spider and Kiwifruit Pavlova. New Zealand’s favourite kiwi dessert classics are now available in 2L tubs. Cola Spider contains delicious Tip Top vanilla flavoured ice cream swirled with a cola flavoured jelly to create the ultimate cola spider. Kiwifruit Pavlova is a delicious Pavlova flavoured ice cream swirled together with a kiwifruit ripple. Both ice creams encompass only natural colours and flavours and are made with fresh New Zealand milk and cream.
Plant Pesto
Consumers are demanding real foods with no nasties that taste delicious. To meet this growing demand Genoese have created a plant-based pesto. Made using fresh basil the pesto is then blended with dairy-free vegan-friendly ingredients. Genoese ranks number one in New Zealand’s pesto category with a 45 percent market share.
Balanced Meal Replacement
Healtheries Vitaplan not only has a fresh new look but now comes with prebiotic and probiotic fibre. The formulated meal replacement drink supports a healthy digestive system by balancing the guts microflora. Available in three flavours – Vanilla, Chocolate, and Mixed Berry, Vitaplan is great for the elderly, pregnant and breastfeeding women. Healtheries Vitaplan contains 24 essential vitamins and minerals. Vitaplan is also gluten-free and contains no artificial colours, flavours or preservatives.
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storeofthemonth PAK’nSAVE QUEENSTOWN Michelle King, co-owner of PAK’nSAVE Queenstown, grew up in the grocery industry. Both her parents were grocery retailers, firstly in Queenstown and then in Wakatipu, where they opened the local New World in 1990. “Prior to entering the grocery industry full-time, Anthony and I both completed Law and Commerce degrees at Auckland and Otago Universities respectively, then went on to work for big five accounting firms.”
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he couple then went on to join Michelle’s parents at Wakatipu where they worked for a number of years before purchasing the business in 2013. Not long after, the pair sold New World Wakatipu to begin their next adventure, which saw them open PAK’nSAVE Queenstown in November 2016. Opening the PAK’nSAVE in Queenstown, a region that did not previously have the brand, has been not only a challenge but a huge opportunity for the couple. The planning and execution that was involved in opening the store proved to be an exciting task that Michelle and Anthony took on head first. “This has definitely been a team achievement for us, where the strength of the Foodstuffs Cooperative, ourselves as operators and our team of committed managers and staff worked together to deliver.” It seems to have paid off with an increasing number of local customers, who were previously not traditional PAK’nSAVE shoppers, turning into brand champions and giving the team great positive feedback. While Queenstown is known for its breath-taking landscapes, opening a store in this tourist region does have its challenges. “Workforce is a major issue for businesses in Queenstown, and we are no exception to this. Attracting and retaining our team is a huge challenge especially with the fluctuating number of backpackers that live and work here.” Despite this, the couple has managed to retain their department and senior management team since the stores opening. This has given the business a fantastic base from which to develop individuals and team members. “Hopefully this is a positive reflection on the environment and opportunities we are fostering and the enthusiasm of our teams to embrace challenges and grow within a new business.” Managing to retain and develop a core team of senior staff since opening has been a highlight for both Michelle and Anthony. Being a part of the local Queenstown community also reaps its rewards and contributing to the community is important to the pair. “We value the community we live and operate in and want to do all we can to be involved and supportive of the local region. This has seen us invest both time and financially in local organisations and causes.” The store supports a wide variety of local schools, charities and organisations. They work with the Wakatipu
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High School Foundation, which supports the only local high school in Queenstown. The foundation is a key recipient of store’s support as the couple believes in developing and supporting youth. Michelle is also a Trustee of the Foodstuffs Community Trust, which approves grants for community and educational causes throughout the South Island. “The local community in Queenstown is still quite small, so we and our team are fortunate to know a number of our customers personally, even in a big store.” Because of the tight-knit community, personalising the customer experience is important to the team at PAK’nSAVE Queenstown. “With a self-selection DJ system, the PAK’nSAVE Sticky Club, and an engaged team of people, we aim to personalise the shopping experience for our customers.” Creating an in-store experience that will keep customers coming back is key to operating a successful franchise in a small, close-knit community. “Being able to offer customers an in-store experience that is welcoming and encourages them to return frequently is definitely an opportunity for us to continue to work on.” In addition to delivering a high-quality in-store offering, a functional layout
is also another way in which the store stands out from the crowd. “We love big, clear aisles, and giving our customers space to enjoy the shop. Great natural lighting and a modern, fresh all-round look to the store all contribute to improved customer experiences.” Harnessing the flavours of local producers is another way that the team aim to personalise their customer experience. “We have a large selection of Central Otago wine on offer. We stock Central Otago stone fruit when it’s in season. Outside of that, we try to support as many local suppliers as we can, including honey, wraps and a number of beverage suppliers,” said Michelle. Being long-term Queenstown locals, Michelle and Anthony feel that they are well positioned to know and respond to unique local needs and be prepared for seasonal changes. “We are hands-on operators who enjoy any opportunity to engage with our team and our customers on a regular basis and believe this helps us gain insight that can translate into enhancements in our retail offering.” The grocery industry has undergone some dramatic changes in recent years with the increase in health-conscious and environmentally aware consumers. The team has seen substantial growth
Footprint 6,546 sqm
160 staff
Selling Area 5,806 sqm
16,500 SKUs
CHECKOUTS: 16 regular
Opening Date: November 2016
opportunities in both organic and vegetarian products, as well as ‘health’ focused items. Craft beer is another area with a lot of new product development. “We have created a large dedicated craft beer chiller within our beer and wine area that caters for this section of the market. We have also been focusing on extending our ranges of organic, international, gluten-free and lately vegetarian offerings.” Fresh produce has also been a focus for the staff at PAK’nSAVE Queenstown with the dedicated team working hard to ensure the produce is top quality and looks its best. “The quality of our fresh areas is top of mind for us. We have the sales volume to keep things fresh, but also to respond to local demands quickly.” In addition to fresh produce, seafood has proven to be a popular area in the supermarket with both tourists and locals flocking to get their fix of fish. “Seafood has been a standout for us since opening. It is a dedicated area, with passionate staff who work hard to know their products and their customers. We are also very proud of our butchery, produce, deli and bakery craftsmanship as well.” Products that have been made in-store is another category that has seen a dramatic increase as more supermarkets cater to the on-the-go consumer.
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ANTHONY & MICHELLE KING
“We are continuously developing more in-store made products for this part of the market, as well as looking at quality items we can procure from suppliers. We have expanded the shelf space for these products continuously since we opened as demand continues to grow.” Keeping up with industry trends and technology is not only a challenge for store owners but is also an opportunity. “We are continuously investigating opportunities for improvement and development.” In July PAK’nSAVE Queenstown became the first South Island PAK’nSAVE to install electronic shelf labels throughout the store. Sustainability has been a hot topic this year with plastic packaging and single-use plastic bags creating a stir in the industry. Michelle and Anthony have a number of environmental initiatives in place and are researching possibilities for the future. “We recycle where we can, including cardboard and plastic as well as offering a soft plastic recycling programme to our customers.” The store is energy efficient, operating on a 100 percent LED lighting system, a heat reclaim system and have installed energy saving airflow shelf fronts to their chillers. “We generally search for any new initiatives that allow us to operate a more sustainable building.”
In addition, the store also donates fresh excess food that would usually be thrown out to charity organisations. By the end of the year, Michelle and Anthony also plan to remove single-use plastic bags from checkout, and will continue to investigate further ways to reduce plastic and waste within the business. In the future, the team at PAK’nSAVE Queenstown hope to continue to grow its range and build on the brand. “We aim to satisfy the PAK’nSAVE brand promise of ‘New Zealand’s Lowest Food Prices’. Building on this, we also seek to utilise our local knowledge and customer feedback to influence our range to ensure both locals and tourists alike can find some high-quality products to treat themselves with, while still always offering these at good, competitive prices.” Being given the task of expanding the PAK’nSAVE brand into a region where it was previously not present has had its fair share of challenges but being able to work in such a beautiful place with a great local community makes it all worth it for the Kings. “We’re very fortunate to be located in Queenstown, so our store location with The Remarkables mountain range as the backdrop is very special and unique.” n
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Back to school spending grows year on year. This time of year is a huge opportunity for larger retailers – the second biggest shopping event of the year – and research shows 83 percent of back to school consumers will opt to shop at mass merchants over online or boutique stores. However, that leaves almost 20 percent of the back to school spending market up for grabs.
number one mainstay of school shopping is lunches. It’s also the most rapidly changing section of the back to school market. The rise of meal prepping and online ordering means school lunches are planned further in advance than ever before, making back to school a vital time for lunchbox advertising. Bulk packs of products are always a worthwhile investment, but acknowledging that parents are meal-prepping changes the way this can be promoted. Parents are preparing lunches with a full meal in mind, rather than small, individually-wrapped elements. This is done to save time in the mornings, but also because millennial parents are concerned with healthy or ‘clean’ eating. A carb, a protein, and vegetables – this is what the modern lunch is turning into. With this in mind, retailers might reconsider selling bulk packs of crisps in favour of packages of ready-to-cook sushi or tofu. Furthermore, these can be cross-merchandised with vegetables, rice or pasta, and lunchboxes. Parents’ diets primarily influence lunchbox shopping, but children still have a say. Some may consider it unethical to target advertising at children, but a 2015 Turner Broadcasting report showed seven in ten parents were open to their offspring receiving advertising messages as it’s a useful way to introduce products relevant to their child. One statistic revealed that 37 percent more is spent on a family’s back to school shop when dads do the shopping. The reasons behind this are mostly conjecture, but the fact remains that encouraging parents to share the back to school shopping duties is a positive for
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both progressive, modern parenting and retailers’ returns. A Walmart advertisement featuring a Whitesnake song proved successful with fathers across America, showing that the most primal taps – nostalgia and music – are sometimes the most effective. Another interesting father-related tidbit is that, in general, children have more influence over their choices when it comes to shopping. The Turner Broadcasting report found that the annual spending power of children in New Zealand was more than $225 million – even more, when considering the influence, they have over parents’ spending. Notably, children were found to influence parents’ choices about food and toiletries instead of the more child-targeted clothing and toys. Another study found that 67 percent of parents are heavily influenced by their children’s schools’ suggestions for back to school products. Getting on these lists by targeting parent-teacher associations can be a more effective method than targeting individual parents. It’s not just primary school children who are part of the back to school shopping spree. Retailers should factor in high schoolers and university-aged students, who will likely be doing their own purchasing. For primary school children, the largest spend is on apparel, but this peters off as students age and purchase their own clothing at different times of the year (generally spending less than their parents would on garments). However, older students typically spend more on electronics and electronics accessories. Retailers don’t have to stock laptops to take advantage of this – even phone cases and decorations can tap into this market. OWNED
Back to university shoppers are more likely to spend online than other students, which gives smaller retailers a chance to take advantage of consumers looking for something a little more niche. Stationery, bags, and lunchboxes with unique appeal are alluring to young adults looking to set up a new identity. The stationery section has stayed mainly traditional in many New Zealand stores. It’s time to think beyond the classic A4 lined notepad and PVA glue. With more alternative schools popping up and a full range of subjects available in conventional schools, supplying some form of art and media supplies can be a good choice. Retailers are not generally in the uniform-selling businesses, but many stores will have a small section for underwear and hosiery. Liaising with local uniformed schools can help ensure this section of the store is stocked with regulation socks and stockings, items students wear through quickly. With almost 20 percent of the lucrative back to school market still undecided, both online and brick-andmortar retailers have the opportunity to join the market. Mobile devices are the best way to target advertising at younger demographics, but it’s also a way for parents to access coupons and discounts that save them money while also encouraging in-store spending. Up to 92 percent of parents of school-age children use their mobile phones while back to school shopping, while 69 percent use them to research products, and 41 percent use mobiles to compare prices
between stores. Taking advantage of this online presence during the busy season can be a boom for retailers. Many businesses feel that incorporating an electronic payment service will make customers switch to online instead of in-store spending, but the truth is that electronic payments increase the total number of sales by attracting new customers. Many electronic payment services can be made to offer discount codes, reward points, and coupons, all tailored according to the individual user’s experience. For back to school shoppers, loyalty and rewards may not be so applicable, but mass merchants can use the data generated by in-store rewards cards to present back to school coupons and discounts. n
LEAK PROOF
DOUBLE WALL
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School lunches are at the focus of parents’ minds with back to school looming. Healthy food choices are on trend. The Nutritious Snacks Category has seen a 0.3* percent growth in the past year as parents look for healthy snacks for their kid’s lunch boxes. Parents are still confident in the old favourites, with Mother Earth Baked Oaty Slices continuing to reign as New Zealand’s number one sub-brand in the Nutritious Snack Category. The brand has had a growth of 2.8* percent over last year — the trend towards healthy food choices proving beneficial for the brand. Following the successful launch of the Mother Earth Vege Fruit Sticks in 2017, the company has invested further in vegetable-
based products and launched Mother Earth Vege Fruit Bites. The products have performed well, with Vege Fruit Bites contributing half a million dollars to the Fruit Snack segment of the lunchbox aisle in Total New Zealand Grocery***. Mother Earth was voted as the Readers Digest Most Trusted Brand in the Muesli and Snack Bar category for 2018, and their products are a staple in kids lunch boxes across the country. For more information contact Prolife at 07 959 0904 or visit www.prolifefoods.co.nz. n *
IRI-Aztec MarketEdge TKA NZ Grocery Nutritious Snacks – Dollars MAT 30/09/2018 ** IRI-Aztec MarketEdge TKA NZ Grocery M/Earth Baked Oaty Slices – USW Quarter 30/09/2018 *** IRI-Aztec MarketEdge TKA NZ Grocery M/Earth Vege Fruit Bites – Dollars Growth Actual YA MAT 30/09/2018 ^ IRI-Aztec MarketEdge TKA NZ Grocery Nutritious Snacks – Dollar Share – Quarter 30/09/2018
100% Fruit. Seriously, that’s it!
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Annies Bars are a perfect way of sending unbruisable fruit to school in kids’ lunchboxes. Demand for Annies 100% Fruit Bars has grown as consumers become increasingly aware of including healthier snack choices in their grocery purchases. Because the Annies range is made from 100 percent fruit, and nothing else, they are great for both adults and kids, and perfect for lunchboxes. There are no additives, concentrates, colours or preservatives used and Annies are completely gluten, nut, sulphite and dairy-free. The proudly NZ made company offers a range of purchasing options, from individual bars in six different flavours, to multipacks and resealable 100% Fruit Bites bags, while the smaller 14g bars Wiggles range are great for littlies. Annies – Food You Trust has been making delicious and healthy fruit snack options for over 30 years and are a wellknown and recognisable product in supermarkets and stores across New Zealand. Annies are proudly owned by Kono, a Māori family-owned food and beverage business based in Te Tau Ihu, the top of the South Island. If you’re looking for natural snacks that are simple, healthy, portable and fill a gap in the snacking market, then you’ve found them in Annies. For more information, get in touch – orders@annies.co.nz or visit www.annies.co.nz n
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cross-merchandising and cereal for a breakfast display is not as successful as pairing together bananas, cereal and milk. Creating a link gives customers a more emotive response and therefore will increase the probability of spend.
THE UNEXPECTED
• A perfect example of unexpected buyer crossmerchandising occurred in a UK Tesco store. The retailer noticed that a large proportion of customers purchasing nappies were men as they were often the ones sent out while the women stayed at home to care for the baby. To profit off this phenomenon Tesco started to display beer and snacks next to the nappies and immediately noticed an increase in sales.
ALL ABOUT EASE
DRIVE SALES WITH CROSS-MERCHANDSING
Increasing customer spend is one of the keys to running a successful business and, when considering that 70 percent of purchases are made in store, merchandising is important. One of the ways in which a store can do this is by crossmerchandising. “Cross-merchandising can provide convenience for consumers and inspire them to consider different combinations of products,” explained Katherine Rich chief executive New Zealand Food and Grocery Council. The cross-merchandising method allows stores to increase basket sizes while also making the shopping experience for customers easier and more effective. The method involves grouping complementary products from different categories together to create more convenience for the customer and to drive store sales for the retailer. “Cross-merchandising is used for a number of different reasons within our stores including to provide inspiration for our customers, pairing complementary products together for customer convenience and highlight seasonal products such as a displays for Mother’s Day or Halloween,” said Scott Davidson, general manager merchandise at Countdown. Cross-merchandising solutions are beginning to appear more and more in New Zealand supermarkets. But New Zealand still has a long way to go when compared to their counterparts overseas. One of the biggest areas that has recently seen an increase in cross-merchandising displays is the speciality cheese category. Wanting to create a full sensory experience the specialty cheese section is often accompanied with wine, beer, crackers, chutneys and jellies to name a few. While New Zealand is limited when it comes to crossmerchandising alcohol due to government regulations there is no reason why a cheese cannot be paired with a chutney and cracker. Jumbo Foodmarket in the Netherlands was recently spotted pairing its mozzarella with tomatoes in the fresh produce section. A powerful strategy, cross merchandising creates interconnected solutions for customers while also educating them on what other products exist to match with another product. Cross-merchandising can be performed in a number on ways:
CREATE EASE
• Customers who have come in to pick up a few specific items don’t want to have to walk around the entire store. Displaying meal ingredients together eliminates the need for a shopper to walk the aisles. Pairing together pasta and pasta sauces or pizza and
various pizza toppings at an aisle end offers a quick solution for consumers seeking a quick and easy answer to dinner. Another example of this would be grouping together salad ingredients. Having the lettuce, tomato, red onion, cucumber and salad sauces together creates an easy answer for customers hoping to whip up a quick salad. Including the salad sauce in the group also means that the customer doesn’t have to venture to the other side of the store to seek out some sauce. Ice cream is displayed in one section of the store while toppings such as sauce, sprinkles and even bananas are stocked at opposite ends. Bringing all of the items together in one section to create ease for the customer will have them returning in store. Creating ease and added convenience for shoppers will have them spending more and returning to the store.
USE THE PRODUCE SECTION
• Generally speaking the produce section is the first part of the supermarket a shopper will see so creating shock value can increase spend. It is also at the beginning of the supermarket so if a shopper changes their mind or forgets something they don’t want to have to walk all the way back to the start. Pairing tomatoes with cheese or peelers with potatoes creates ease and sparks ideas.
DEMOS
• Demonstrations are a great way to show customers how the products can be used together. International influences have been increasing in popularity in the supermarket aisles recently. One of these new-found foods gaining popularity is dumplings. Demonstrating how to cook dumplings in store not only educates the customer as to how to cook the food but also allows them to taste it. A demonstrator can also showcase the dumplings with a dumpling sauce to upsell and increase customer spend.
CREATE A LINK
• For cross-merchandising to be successful retailers need to create a link. Pairing together just bananas
• Pairing a food item with something that can make using the item easier is an effective way of crossmerchandising. A Fresh Foods store in the US did this by pairing together a bag of cherries with a cherry pitter, and supermarkets are often seen pairing cupcake holders next to baking ingredients.
CREATE A MEMORY
• Associating shopping with a memorable experience can increase buying habits. For example, a picnic at the beach resonates well with families so displaying possible picnic items together could encourage the shopper to purchase more than they initially came in for.
SMART MOVES
• Shoppers will often forget some of the things on their grocery list so merchandising to assist the customer by placing common pairings together may help them to remember what they need. Placing coconut milk next to curry paste or salad dressings next to lettuce may not only help the consumer but also improve sales.
EDUCATE
• Supermarkets are beginning to stock more international foods on their shelves. Some of the more uncommon products may cause confusion when it comes to the correct way to use it. Displaying items that complement each other together alongside a simple recipe will educate shopper’s on how they can use the items and ingredients.
SPECIAL OCCASSIONS
• Cross-merchandising for special occasions is already practised for popular holidays such as Christmas and Halloween but can also be used for less official occasions. Crossing-merchandising easy snack solutions during the Rugby World Cup for fans who are entertaining or even creating seasonal displays such as ice cream sundae stands during the summer are both great examples of cross merchandising.
FIVE TOP TIPS
Understand the customer: When putting together a display consider how it looks from the customers point of view. In order for cross-merchandising to work effectively it must make sense. Keep with the theme of the store: Don’t clutter aisles or the store. When cross-merchandising keep store flow in mind. A logical link: Products that are displayed together must complement each other in some way. Pasta and Pasta sauce makes sense, but pasta and soy sauce does not. Track the result: Sales of displayed items should increase and if not, the display should be reconsidered. Limit the displays: Don’t go overboard with crossmerchandising in order for it to work the displays need to be put together for a reason. Events or seasons are a good way to monitor when certain items should be displayed. If a supermarket has a different display at every aisle end it may become confusing for the customer. n November 2018
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cross-merchandising Why do you believe cross-merchandising should be used in New Zealand and how does it improve retailer sales?
Neill Arnold
Katherine Rich
Andrew Arnold
With NZ shoppers feeling more time poor than ever before, cross-merchandising is a powerful solution in the smart retailer’s toolkit. It simplifies the shopping experience by meeting the needs of an occasion in a single location. The speciality cheese bar is the most consistent example in the New Zealand grocery industry; where the primary purchase is cheese for entertaining and the support purchases include crackers and often dried fruits and nuts. By presenting this much wider range of products in a single location, shoppers meet unplanned needs, while building their total basket spend. The difference between good and great retailers is ensuring that once a shopping visit has been secured, the maximum available retail dollars are captured during the visit through exceeding shoppers’ expectations.
Cross-merchandising can provide convenience for consumers and inspire them to consider different combinations of products. It can remind consumers of favourite combinations or spark the idea for new ones. The classic combination often seen over the years is Maggi Onion Soup sachets displayed with Nestle Reduced Cream, the key components of the classic Kiwi dip. In the meat sections, I’ve often seen meat rub and sauce products. For the products, it’s a great way to stand out when seen in the context of another category, not just the shelf. However, sometimes cross-merchandising is prohibited by law. Earlier this year I visited a range of supermarkets in France. There I saw bottles of wine displayed beside cooked chickens, breadsticks and other meal solutions. Here in New Zealand, this would be illegal under the law as there can be no other products other than beer and wine sold in the alcohol section. The thinking behind this restriction was never clear, and it’s a shame because there is the lost opportunity to market relevant foods. The NZFGC pointed out at the time that consuming food when drinking alcohol was a positive, but the common sense of this was overlooked by the government of the day.
Cross-merchandising is important in New Zealand and is also effective, but only if it is used and executed properly. We know that top-up, mission and occasion-based shopping is becoming more important in NZ grocery (trips of this nature are up 6 percent on the prior year) and crossmerchandising works very well in catering to this trend. Shoppers are increasingly coming to the store on a specific mission, for example, dinner, without necessarily knowing exactly what they want to buy. The mission is dinner, but what can fill that need? Several options exist but are often in different parts of the store and are not necessarily easy to shop, so stores that offer solutions are best placed to capitalise on this trend. Stores need to consider how to best provide a solution for the shopper – putting rolls and salad with the hot chickens for example or putting ambient meal kits beside the beef mince.
Neill Arnold, Big River Solutions
Katherine Rich, New Zealand Food and Grocery Council.
KEEPING IT REAL
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functional BENEFICIAL TO CONSUMERS
The functional foods market has seen a rapid increase in sales in the last few years with supermarkets across the country having to expand their health/functional food aisles to meet consumer demand. With an increase in an ageing population and more health-conscious consumers the main reasons for the rise. While kombucha and protein have had their time in the spotlight companies are now having to think outside the box and experiment with new alternatives. Collagen has recently been spotted popping up on supermarket shelves. While the skin restoring protein has been popular in Japan and China for some time, it is only in recent years that it has been made readily available to Western consumers. Bulletproof coffee recently launched a range of collagen-infused coffee products and Protein Water Co released a Skin Maintenance range of flavoured waters that harnessed the power of collagen and hyaluronic acid. Consumers aren’t just happy with eating plan boring healthy food they want to have their cake and eat it too. Consider ice cream, not only are consumers seeking more dairy-free options they also want it to be low in sugar and high in protein. The baking industry has also seen a rise in the number of enhanced functional items such as protein cookies. Taking out an ingredient is also no longer enough. Gluten-free wraps which were once niche and are now seen everywhere, need the benefit of added protein or a vegetable such as beetroot. A recently announced change to New Zealand’s Industrial Hemp Industry is set to be implemented this month with the government announcing that the sale and consumption of hemp seed products would be legal as of the 12 November. While consumption and sale will become legal, the product will still have strict labelling restrictions such as; featuring the word ‘cannabis’ or displaying the cannabis leaf on the packaging. Functional Food is described as food that beneficially affects a function in the body beyond usual adequate nutritional effects that results in an improved state of health or well-being. A functional food cannot be a pill or capsule or any
form of dietary supplement and has to be consumed as part of a consumer’s normal food pattern. Foods are regulated under the Food Standards Australia New Zealand Food Standards Code. Before marketing, a functional food manufacturer must determine whether or not their product is a food or whether it is ‘a therapeutic good’. After determining this packaging, labelling and the composition of the food all must meet the Food Standards Code. FSANZ offers 200 pre-approved health food claims as well as 13 preapproved high-level health food claims. “Food businesses self-substantiating a food-health relationship so they can make a general level health claim must notify FSANZ of the relationship before making a claim on food labels or in advertisements for food,” said a spokesperson for FSANZ. In 2013 laws regarding health claims on food items were changed in an effort to reduce the risk of misleading and deceptive claims about food, provide a wider range of healthy food choices to consumers and to expand the range of permitted health claims which can be made about certain grocery product. While the functional food industry may be booming manufactures and suppliers must be careful to adhere to the strict labelling and advertising rules with a failure to do so resulting in undesirable consequences. n
LIVE CULTURED FIZZY Remedy kombucha is a fizzy live-cultured drink that’s not only tasty but healthy. The drink is chock-full of live cultures and organic acids that are good for the gut and overall wellbeing. Remedy naturally contains no sugar and is the only Kombucha that has the tick of approval from ‘I Quit Sugar’ to prove
it. This is because the beverage is made the old-school way, fermented in small batches using a long-aged brewing process that removes all sugar. Remedy Kombucha is 100 percent all natural, raw, certified organic, vegan, gluten free, fructose free and paleo friendly. Remedy Kombucha is available in a range of flavour from Original and Ginger Lemon to Raspberry Lemonade, Apple Crisp, Hibiscus Kiss, Cherry Plum and now two more new flavours – Ginger Berry and Lemon Lime & Mint. For more information, contact Greg at Real Foods at greg@realfoods. co.nz or phone 09 256 4680. n
RECOVER WITH EASE DRINK SMART
Wave farewell to mental fogginess and bid adieu to butterflies with Ārepa, the all-natural, revolutionary smart drink that combines neuroscience, nature and technology to support mental clarity. Founder Angus Brown, in partnership with world-renowned neuroscientist Professor Andrew Scholey, spent more than four years developing Ārepa and clinically testing the formula with some of New Zealand’s top universities. Ārepa, which means Alpha in Māori, is made with a unique formula of New Zealand plant extracts such as pine bark extract Enzogenol and blackcurrant extract combined with Japanese green tea compounds. Ārepa is 100 percent natural, caffeine-free, and contains over two grams of polyphenols. The smart drink is them combined with a base of organic juice from Hawke’s Bay apples and Canterbury blackcurrants to deliver on taste. Visit www. drinkarepa.com for more information. n
Matakana SuperFoods’ all Recovery Formula is the ultimate, once a day boost for people on the go. Incorporating some of nature’s nutritional powerhouses including; organic pomegranate, red raspberry, blackcurrant, beetroot and goji berry concentrate, this easy to mix powder can be added to water, juice or a post-work-out smoothie. The all-natural ingredients are sustainably sourced and have been hand-picked due to the amount of antioxidants, essential vitamins and minerals which support muscle recovery. The powder is perfect for those living a physically active lifestyle. Available at selected supermarkets and health food stores or call the team at Matakana on 09 422 9618. n
THE GOODNESS OF CHIA
The Chia Co. was established in 2003 to positively impact global health by making the nutrition in chia available to everyone, every day. Sustainably growing chia seeds in Australia, The Chia Co. consistently deliver a positive contribution to global health by providing high-quality chia that makes it easy and delicious for people to make healthier choices. Chia contains the highest combined plant-based source of omega-3, fibre and protein. It requires no processing and can be added directly to food
to further increase their nutritional value. The Chia Co. product range includes the Black and White Chia Seeds, Chia Oil and Chia Shots. The Chia Co. products are available from Natural Things. For more information head to naturalthings.co.nz, email sales@ naturalthings.co.nz or phone 0800 674 264. n
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functional GUT HEALTH
Fermentation is the age-old practice of preserving food which has the added benefit of helping health and well-being. New Zealand-based creators of raw, live sauerkraut and kimchi Living Goodness is rapidly establishing itself as the go-to range for fermented foods. Living Goodness take finely chopped, local raw cabbage and vegetables, carefully selected herbs and spices and create gut-friendly fermented jars of living goodness. With live ‘good’ bacteria or probiotics these products are great for balancing digestion. The range has six fabulous flavours from plain Naked Sauerkraut with just cabbage and Himalayan salt to colourful Heartbeat Kraut with beetroot and red and green cabbage to spicy Sum Yum Kimchi, a Korean ferment with a Kiwi twist. For the best taste sensation fermented foods should be eaten as a condiment to a meal, and Living Goodness recommends a couple of tablespoons a day to help keep a balanced and healthy diet. For more information contact Living Goodness on info@livinggoodness. co.nz or visit www. livinggoodness.co.nz. n
A SLICE OF KOREA With the rise in popularity of food from the Asia, OBAP has launched its Korean range of products into New Zealand. Asian cuisine has long been known for embracing functional ingredients in their food, and now this functionality is finally making its way into Western supermarkets. OBAP’s popular glass noodles made from sweet potato are great for soup and stir-fries. Translucent and chewy when cooked, the noodles are gluten-free and are a great way to add sweetness to any meal. Fermented vegetables are traditional at any Korean dinner table which is being adopted by Kiwis more and more. Fermented vegetables assist the growth of good bacteria for health and positive well-being. OBAP’s Kimchi provides all the goodness of fermented vegetables with a milder flavour than fresh kimchi making it a
perfect addition to any dish like eggs, garden salads or as a tasty side snack. As sushi has become more mainstream, people around the world are realising the benefits and versatility of seaweed. This nutrient-rich ingredient is known to offer bioactive antioxidants, soluble dietary fibres, minerals, vitamins, fatty acids and proteins among many other functional benefits. OBAP’s Roasted Seasoned Seaweed comes in English packaging and can be sold in a multi-bag or as individual 5g trays making them the perfect lunchbox snack or to serve as nibbles. For more information about OBAP’s range of products, contact Oriental Merchant at nzequiries@oriental.com.au or ph: +64 9 259 0550. n
functionalroundtable What are the challenges associated with marketing and manufacturing a functional product to consumers and buyers? Our Probiotic Muesli range was the first breakfast cereal/muesli in New Zealand to contain shelf stable probiotics when we launched in 2016. The functional benefit of probiotics was reasonably well known by consumers, but the challenge for us was and still is, effectively communicating on pack and in marketing communications the what, how and why to consumers. Consumers are used to seeing probiotics in yoghurt, but it is unexpected in muesli. With support from Ganeden, the supplier of the probiotic BC30, we were able to tailor our messaging to keep it simple yet credible.
Christine Millar, Something to Crow About
Christine Millar
Producing a functional food can be difficult. A lot of time is spent on education for these products as many consumers and buyers are not aware of the health benefits of these products. Fermentation is a slow process, taking up to 6 to 10 weeks, so a lot of planning ahead and patience is necessary. Sourcing good quality ingredients can be challenging. Especially organic ingredients. The cost is also a lot higher which makes these products a lot more expensive to make. It is a challenge having buyers and consumers realise this.
Kristina McCalman
Consumers are bombarded by food and health information at every turn, being able to cut through this noise is crucial but difficult. Therefore, getting a product through development and into the market at the right time in the bell curve when the knowledge and popularity of the functional food is on the rise again is crucial. Functional foods for the majority of consumers are on-trend. Supplements or health additives in food and most of the awareness comes through communications via media about the additive’s potential health benefits which fill current ‘popular’ needs; for example, pro and prebiotics for gut health, antioxidants in matcha for fighting disease and slowing the effects of aging and turmeric for its anti-inflammatory properties and high levels of antioxidants. The final challenges are that function foods need to contain enough of the additives to legally support a health claim on the pack, taste great and be at a cost that the trade and consumers will accept.
Kristina McCalman, Prolife Foods
Joanna Nolan, Be Nourished
Joanna Nolan
When regarding kombucha, ensuring the kombucha brew is never over processed and remains unpasteurised. So, it maintains all the optimum functional health benefits, for example, the good stuff - probiotics, microbes and beneficial acids, which assist with detoxification of the liver and overall gut health. When marketing a popular drink product, one of the challenges is standing out as a brand on its own. What makes us different is that we use fresh produce to flavour our alive kombucha, which is also a functional food that also has a function in the body - fresh turmeric, ginger and beetroot to name some. This adds to the cocktail of goodness in our kombucha.
Rebecca Lee, Born and Raised
Rebacca Lee & Grace Moore
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Angus Brown
The challenge of marketing and owning a functional product is trying to pack complex science into an easy to understand health claim that also complies with the current regulations. It is an art as much as a science.
Angus Brown, Arepa
Doug Bouton CO-FOUNDER, HALO TOP
Doug Bouton grew up in small-town Virginia with big-time dreams – he wanted to be a shortstop for the New York Yankees, but unfortunately ended up being a lawyer. “Working at a law firm was pretty much a nightmare for my personality,” said Bouton. “I need control over my own schedule and the freedom to do things how I want to do them. I needed to do something entrepreneurial if I ever wanted to be happy in my career.” He went into business with Justin Woolverton after meeting at a lawyers’ basketball league in LA. Halo Top was born in a “eureka” moment after Woolverton bought a Cuisinart ice cream maker and ran his recipe through it. “Justin wasn’t thinking about starting a business. He just wanted an ice cream that he could eat an entire pint of and not feel bad about it.” Woolverton brought in Bouton in early 2013, when the business was getting to be too much for one person. The two have never looked back, particularly born entrepreneur Bouton. “I will say, looking back, even if Halo Top had failed, Halo Top’s worst day was significantly better than my best day at the law firm.” Neither Woolverton nor Bouton had much experience in the food industry, but as outsiders they knew what was missing from the market. “It’s ice cream, first and foremost,” warned Bouton about the health benefits of Halo Top. “A full pint only contains
this is due to the brand’s core demographic, millennials 280 to 360 calories with 20 grams of protein and very who have imprinted Halo Top on the internet. little sugar.” With other ice cream brands containing One contributor to the initial fuss was GQ writer a thousand or more calories per pint – and a huge Shane Snow, who famously ate nothing but Halo Top amount of sugar – the invention of Halo Top created a for ten days. Snow realised that by eating five pints of new category in the market. Halo Top a day he could get 120g of protein at the The first step in creating a “healthy” ice cream is cost of only 1,200 calories a day – the supermodel diet cutting the sugar. Halo Top replaces most of the sugar which resulted in him losing 4.5kg. with stevia. “We also get creative and use things like “We’ve been incredibly fortunate to have such loyal egg whites and skim milk,” said Bouton. Taste buds fans who are heavily invested in Halo Top and help aren’t always smart, and can’t detect a four percent to make our community what it is.” The brand’s core change in fat levels. This change sounds minimal, but demographic is largely millennial, and healthy or it saves plenty of calories. There’s also a fair amount of “clean” eaters. “They are the voices that we listen to air whipped into each pint, meaning that after a pint when we are creating new flavours,” he said. of ice cream consumers won’t feel heavy and lethargic. The new flavours are taste tested by Woolverton All ingredients are high quality, so the taste and texture and Bouton themselves – consistency from the outset. stay true to a traditional ice cream. Bouton’s favourite flavour is the limited-edition Peanut Since its invention in 2011, Halo Top has expanded Butter & Jelly, a flavour combo he hopes we’ve heard to 15 countries, with the New Zealand market one of of. “If so, we might have to find a way to get some to its most recent additions. “New Zealand was at the New Zealand.” top of my list because I was looking forward Flavour suggestions are just one part to selfishly taking “business” trips to the of the first-class consumer interaction countries on my bucket list,” said Halo Top has. The company has a Bouton. “Now, I’m excited about playful brand personality, as well as expanding to South Africa for the engaging with topics close to its same reason.” audience’s hearts. Feedback from consumers “We’re constantly looking to has been key to Halo Top’s find ways to reduce our carbon success outside of the US, with footprint,” said Bouton of the Woolverton and Bouton interested brand’s ethical philosophies. The in what their fans on the ground company has also seen an increased have to suggest. “We will see what demand for vegan ice creams and flavours most New Zealanders want to Justin Woolverton, is proud to have non-dairy offerings. see and hopefully get them there sooner Co founder “Statistics show there has been a 600 percent rather than later.” increase in people identifying as vegan.” Halo Top Halo Top has gone from strength to strength, is more than happy to cater to this rapidly growing from the first cash flow positive moment through to demographic and became the best-selling non-dairy starting their own sub-category in the market, and still pint in the US soon after its release this year. Bouton outselling well-established, traditional ice cream brands hints it might turn up in New Zealand before long. like Ben & Jerry’s and Häagen-Dazs. Woolverton and The entrepreneurial Bouton confesses it’s hard to Bouton have gone from nearly being killed by Halo see past five months, let alone five years – everything’s Top - by breathing in the dry ice fumes they lugged moving so quickly. “At one point in time, Coca-Cola around in their own cars – to being named Food was a start-up company that sold a soda beverage,” said Disrupter of the Year. “It was surreal to be named in Bouton, suggesting his brand wouldn’t mind becoming Time Magazine’s 25 best inventions of 2017 with the an iconic multi-national brand. “It’s fun to think about likes of Apple, Tesla, and NASA,” said Bouton. that opportunity,” he admitted. “For now, we’ll just Between 2015 and 2016, Halo Top’s sales grew by keep working hard and having fun, and hope that the 2,500 percent in a single summer, resulting in the rest will take care of itself.” n innovative snack becoming a household name. Part of
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Foodfirst Expo Set To Return In two short years, the Foodfirst Expo has evolved into a unique trade-only event and a highlight of the trade show calendar. The 2018 edition was a resounding success, with over 100 exhibitors presenting their products to more than 1000 industry figures. The 2019 Foodfirst Expo is set to be bigger and better than ever before, with the show extending over two days for maximum attendance.
Held on Monday 11 and Tuesday 12 March at the ASB Showgrounds in Auckland, the 2019 Foodfirst Expo will gather passionate suppliers and committed buyers under one roof. Highlights of previous shows that will return in 2019 include the live Vitasoy Espress Yourself Latte Art Challenge, cooking demonstrations in the Yes Chef! section, and the much-anticipated return of PITCHme, a unique opportunity for suppliers to pitch their product to a panel of industry heavyweights. Another innovation for 2018 was the Inspire+ section of the exhibition, which gave the opportunity for smaller, artisanal producers to present their
products. The Inspire+ section is set to expand in 2019, giving more producers the chance to share their work with the industry and offering buyers a window into the world of New Zealand’s artisanal scene. The Foodfirst Gala Dinner, held on Monday March 11, will see the presentation of a number of awards including Supplier of the Year, Account Manager of the Year, Regional Sales Person of the Year and a Rising Star Award.
THE HEART OF INNOVATION
For the last seventy years Burns & Ferrall has supplied kitchen equipment to businesses throughout New Zealand as the heart of innovation. To celebrate this milestone, the company wanted to do something different, special and unique to the hospitality industry, and something that would keep in line with Burns & Ferrall’s purpose – to be the innovative heart of hospitality. In this spirit, Burns & Ferrall has mixed innovation with creativity and developed the Great Container Kitchen Giveaway. Up for grabs is a fully equipped, fully functional commercial kitchen housed inside a custom-built recycled container – an amazing container kitchen worth over $125,000. Anyone can enter the competition – it’s that easy. Spend $1000 or more with Burns & Ferrall to automatically go into the draw. One lucky person will win a fully functional restaurant ready to open for business almost immediately. The other advantage, for all those that enter, is that they will have purchased $1000 or more of the best tabletop product or commercial kitchen equipment in New Zealand – you can’t beat that. The competition runs until 31 January 2019, with the winner to be announced at the Foodfirst Gala Dinner on 11 March 2019.
DOES YOUR PRODUCT HAVE WHAT IT TAKES? PITCHme is an exciting initiative from Restaurant & Café and Foodfirst that opens up the lines of communication between small, large and artisanal producers and the buying groups. Last year, local companies such as Dr Feelgood, The Larder Project and Tamco, as well as larger groups like Bluerock and Magnesol, all presented their products and services to a panel with a total buying power of over $2 billion. PITCHme is a dragons-den style opportunity for the foodservice industry, giving suppliers the chance to pitch their brand to a panel of buyers and influencers in the foodservice industry. Suppliers submit an entry for consideration to the panel, who will then make a list of the finalists. These finalists will have the opportunity to put their product in front of the panel in person for feedback and of course the possibility of being stocked. The PITCHme panel is made up of industry influencers including representation from small and large distributors, high profile chefs, and buyers for groups from banner QSRs to institutions. The
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panellists have the option of taking up the product, but more importantly will give feedback and advice on the product, including suitability of purpose, premiumisation, what further development is needed
or a simple reality check. PITCHme will provide foodservice suppliers with critical advice on a brand’s future development and provide a network for ongoing advice.
11-12 MARCH 2019 Auckland Showgrounds
Go online to register for your FREE VIP PASS www.foodfirst.co.nz
Frosted
Stripped back packaging was on trend at "JAPAN'S FOOD" Export Fair. Consumer desire for simplistic packaging continued to grow. Many brands had elegant frosted packaging in plastic. rPet and glass, across all categories. The packaging designs were a refined execution of the on-going minimalism trend. Championing controlled and considered designs won over buyers and attendees alike. Quality was key to having a bold yet simplistic product design and frosted glass and plastics took centre stage.
At “JAPAN’S FOOD” Export Fair in Tokyo, food-to-go trends were not as top of mind as snack foods, and healthy convenience remained a top area of focus for the visiting buyers. While we saw some great new concepts including tofu hotdogs, shark XO sauce and fruit washing water, traditional methods and ingredients also offered opportunities. There were some great examples of enhanced product presentation, re-purposing bars for vegan and dietary requirements, reinventing traditional categories, along with an explosion of jelly-based products.
Jelly
The jelly market has provided a really good opportunity for innovation in Japan and is continuing to grow at a steady pace. Healthy and functional categories were also showcasing jelly products as consumers drive growth in this category. From liqueur jelly to flower-infused to vegetable jelly; jelly was present in most categories. With an increase in singleperson households and busy lifestyles, consumers want convenience with a touch of artisanal flair. A popular new way to drink saké has emerged in Japan, saké with Jelly the latest drink with a low alcohol content. Introducing new jelly based desserts an array of manufacturers used hemisphere packaging, and brands highlighted Cherry Blossom flavour as their hero product.
Fruit fusion
Lemon, lime, peach and apple ruled the market when it came to flavouring any kind of product with a fruity punch. Whether it was wine, liqueur, jelly, jam, tea or juice; Japanese producers had a sweet tooth for fruit. There were some delicate culinary skills that embraced edible petals moving into fmcg. Especially around cherry blossom season, the flowers bloom for two weeks and these producers can preserve the flowers into products with elongated shelf lives.
Hightlights
Other highlights at the fair were premade rainbow products such as rice and seaweed sheets. Another company made custom chopsticks in a variety of woods and styles. They can also print the packaging in long rolls, custom printing options available. A rising trend in packaging presented itself in the form of tall
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thin tubes. A third generation tea company displayed an array of different ways to package tea, from single serve sachets to loose leaf single serve (pictured). XO sauce made from shark collegen was an area of interest for buyers, popular with Australian restauranteurs.
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CHRISTMAS IS COMING! Are you prepared? Place your display stand in a heavy foot traffic area of your store and have plenty of gift card stock on hand.
ORDER YOUR XMAS STOCK NOW - orders@epaynz.co.nz