SupermarketNews // December/January 2015 by Review Publishing Ltd

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Dec/Jan 2015 • Vol. 8 No. 1

To all our readers, advertisers and suppliers, a Merry Christmas and a happy and profitable New Year. For all of us the prospects are bright for a resounding and profitable 2015.

DESPITE OUTCOME, FGC WON’T TOLERATE UNFAIR TREATMENT THE decision by the Commerce Commission to take no action against Progressive on the basis that it hadn’t breached any laws the Commission enforced, hasn’t satisfied the Food & Grocery Council. It still believes that while there were no technical breaches of any law, it didn’t mean business behavior that New Zealanders would deem unfair, had not occurred. Managing director Dave Chambers was clearly pleased the matter was finally over because the “shadow of these false allegations has been distracting”. He says the company is full of hard working New Zealanders who just wanted to do the best job they could. “Overwhelmingly we have

good working relationships with the 4000 suppliers we partner with across New Zealand and if there are any improvements that can and should be made as part of KATHERINE RICH this process, then we’ll carefully look at those,” he says. But the FGC has made it clear that the complaints laid involved “putting a stake in the ground” and it was not prepared to tolerate any unfair treatment of its members by retail groups. “Our members know full well that

RETAILER RECOGNISED AT BUSINESS AWARDS

PAK’NSAVE Te Awamutu’s owner-operators Mike and Robyne Goble took out the Hamilton Retail Business of the Year award at the Westpac Waikato Business Excellence Awards. Held last month, SkyCity Hamilton sponsored the award which is judged on governance, leadership, planning, customer focus, systems and people management, innovation and business performance. Mike and Robyne Goble are pictured above with SkyCity Hamilton’s Michelle Baillie. n

our sector is not for the fainthearted but they also believe that robust negotiations that deliver good grocery savings for consumers and fair treatment of suppliers are not DAVE CHAMBERS mutually exclusive,” says FGC CEO Katherine Rich. With the vast majority of their revenues coming from just two customers, Rich says it is a privileged dominant position that comes with responsibilities to ensure buyer power is not abused. One of the issues that arose was that several suppliers commented they were being pumped for information on what Foodstuffs was doing in the same category and of course that is a two-way street - both the retail groups do need this information. Neither of them want to be running the same deals at the same time and it is logical that suppliers would not run the same promotions or discounts simultaneously Despite the suggestion, there was no evidence of any communication between Progressive and Foodstuffs nor any proof that Progressive had sought to influence the suppliers price to Foodstuffs. The Commission did however point out that even though it did not occur, the industry should be aware that this placed parties at risk of an anticompetitive arrangement if any action emerged out of such discussions. While it is accepted by many that most of the complaints were raised at the behest of the FGC, Rich has defended her position saying it was the role of the industry association to raise issues on behalf of members without fear or favour. continued on page 2

SUPERVALUE IN COURT BATTLE

PROGRESSIVE’S wholesale arm, Wholesale Distribution Ltd, has been granted an interim injunction against the $1.28 million sale of Pauanui’s Supervalue to Matthew and Amanda Iggulden. Progressive says current owners, David and Sonia Brown, have breached their franchise agreement which requires them to offer Wholesale Distribution Ltd first right of refusal on the sale as well as the ability to approve any other purchaser. The Iggulden’s currently own the Four Square in Whitianga and were told they would not be able to purchase the Supervalue unless they sold their Four Square supermarket. Emails between the Iggulden’s and their lawyers show that the couple were considering turning the Pauanui Supervalue store into a Four Square, but later declined these claims. Current owner Sonia Brown claimed she had not been told of the couple’s plans to rebrand. “We had no knowledge of what they were doing. We’ve stayed out of the court action to date but they went in with their eyes wide open, as the Court of Appeal said.” Amanda Iggulden, still in the middle of legal proceedings, refused to comment. n

WOOLWORTHS PROFIT TOPS $A2.45 BILLION NETT profit after tax for the last 52

weeks of trading by the Woolworths group topped $A2.45 billion – an increase of over 6%. And the company claimed it had benefitted consumers by over $750m in savings from key promotional campaigns. It also claimed it deflated average prices by 3.1% over the year. It also extended its leadership as Australasia’s largest domestic online retailers with 2014 sales of $1.2billion, up 50% on 2013.n

contents 07 New World Howick 12 Storecheck 16 SIAL Trends 20 New Products 22 Liquor

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editorialcomment Lessons Learned In 2014

Foodstuffs In Hot Water Over Wages

GOING into the why’s and wherefore’s of the Commerce Commission’s decision on Countdown is now a waste of space – it’s behind us and all over although the repercussions may well hang around for some time. Out of it, we probably have all learned a salutary lesson that working together to maximize profits for all players in such a small business environment, is critical. Talking to each other in a sensible and business-like manner is also just as critical. It would seem the suppliers have told the retail trade that they won’t put up with too much crap and the retailers in turn have made it clear that better negotiating with a more skilled staff level is the order of the day. It is too late for recriminations and dubious comments so just let’s get on with business. If a Code of Conduct does eventuate, best it be voluntary and the lead comes from our industry. With 2015 just around the corner, we certainly have plenty of other things to concern us in the coming year including obesity issues, the next great opportunities such as pharmacy and in-store eating, the overwhelming number of outlets and of course margins. At this time of year though, business is brisk and suppliers who can’t supply are courting disaster. In the meantime, drag ‘em in and let’s all make a dollar.

IT’S been a trying year for Progressive with the Commerce Commission investigation and ongoing media interest in the nitty gritty details of its supplier relationships. While Foodstuffs has been relatively safe from media scrutiny, which has cost Progressive heavily in terms of market share and sales, the co-operative has come under fire recently for its questionable practice of docking checkout employee wages. Foodstuffs has condemned the practice but at the end of the day, several owner-operators had been docking wages for close to six years and the issue should have come up long before now. There seems to be a lot of buck-passing and while the owner-operators in question have offered to reimburse employees – it is more a case of being shamed into it rather than goodwill. It is likely government pressure will result in Foodstuffs implementing a banner policy surrounding wage deductions to prevent a similar situation occurring in the future. There is also the matter of picketing at Porirua’s Pak’nSave for higher wages. The workers are First Union members and are looking to receive the same hourly rate as they would if they worked at the Countdown further up the road. Neither issue paints Foodstuffs in a positive light and now the retailer has to deal with disgruntled former employees calling for consumers to boycott the chain. So quickly consumers forget they were boycotting Progressive not six months ago. From the team at SupermarketNews have a Merry Christmas and a safe and prosperous New Year.

PETER MITCHELL, Publisher

JASMINE WALTERS, Editor

DESPITE OUTCOME . . . continued from page 1

“Discussions in the wake of this report will run to whether we should follow Australia and other international markets to consider a legislated grocery code of conduct or whether laws should be considered to deal with unconscionable dealings to mirrow what is happening in Australia,” said Rich. At this stage, the FGC has said it would support a code of conduct if it led to more positive business relationships. The affair that began earlier in the year led to a chaotic year that cost Countdown millions of dollars in adverse public reaction, probably an unfair outcome, but brought increased market share for Foodstuffs who in turn had their own problems with the ongoing SAP introduction that seriously affected suppliers. All in all, the industry is looking to a better year in 2015.n

POTATO SHORTAGE HITS NZ DUE to poor growing and harvesting conditions around the country, Kiwi potato crops are down by up to 40%, forcing chip producers to temporarily stop production and potato price increases of up to 20%. “In my growing experience I haven’t seen a situation like we are in at the moment. We were out there in the rain trying to get the potatoes out because demand from the market to supply is immense,” says Barat Jivan, a Franklin potato farmer for the past 30 years. The shortage will affect the supply of table potatoes, crisps and French fries. Griffin’s, which manufactures the Eta brand, has announced there will be brief closures when the factory is in short supply and there’ll

be fewer retail discounts. While some stores are already reporting out of stocks, Countdown is working directly with potato suppliers to make sure it has stock available. “We understand from our suppliers that new season crops are down around 20% on last year,” says a Countdown spokesperson. Potatoes NZ chief executive Champak Mehta says consumers will pay more in the interim, while the mismatch between demand and supply is worked through. “Currently there is more demand than supply because none of the previous season’s main crop is left in storage and new season’s product is slower than normal growth,” he says. n

New Team Member

Krystal Spicer joins the SupermarketNews editorial team this month. With over 10 years experience in publishing, most recently at Fairfax Media, Krystal is looking forward to meeting with readers over the coming months. If you have a news story for the New Year then don’t hesitate to give her a call. n

PRIVATE LABEL PERCEPTIONS POSITIVE ACCORDING to a new study by Nielsen, private label perceptions are overwhelmingly favourable - with 63% of consumers saying private labels offer extremely good value for money. Almost two-thirds of Kiwi respondents (62%) say store-brand quality has improved over time and price is a primary driver for 69%. Private label represents a 13.5% value

share in New Zealand and 21% in Australia with virtually all households purchasing private label products in the past year. In New Zealand private label growth of 4.3% has outpaced total retail growth of 1.9%. “Kiwis are increasingly aware of price, which is no longer a differentiator, but an expectation. Successful store brands will be ones that invest in brand management

activities like their supplier peers. Private label brands need to create unique offerings and improve quality concerns with reputation building strategies. By offering value, standard and premium tiers they’ll be better able to compete for consumers at all price points and drive store loyalty,” says Lance Dobson, Nielsen New Zealand’s director of retail. n

SupermarketNews is published under license. Please direct all enquiries and correspondences to SupermarketNews. The opinions and material published in this edition of SupermarketNews are not necessarily those of the publishers unless specifically stated. All material in this publication is copyright and may only be reproduced with the consent of the publisher. Copyright 2014 ISSN NO. 1173-3365

PUBLISHER Peter Mitchell, peter@reviewmags.com

MARKETING Tania Walters, tania@reviewmags.com

EDITORIAL Jasmine Walters, jasmine@reviewmags.com Krystal Spicer, krystal@reviewmags.com

CIRCULATION & DISTRIBUTION Kieran Mitchell, kieran@reviewmags.com

ADVERTISING SALES Felicity-Anne Flack, felicity@reviewmags.com SENIOR DESIGNER Raymund Sarmiento, raymund@reviewmags.com

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COUNTDOWN REPORT REVEALS CHANGING SHOPPER HABITS PROGRESSIVE has released an inaugural report detailing the food and grocery trends of its 2.7 million weekly consumers. Countdown’s Trolley Report looks at the changing buying behaviour of Kiwis, tracking the price of a trolley of the 100 most popular grocery items. In the last year, the price of the trolley decreased by more than 2% with Dave Chambers,

Countdown’s managing director, saying there has been a major shift in buying habits in recent years. “Today every New Zealander is looking for food at the best price, or even better, a bargain, regardless of their income. During the global financial crisis we saw the start of what is continued purchasing behaviour; consumers wanting more

JBS ACQUIRES PRIMO GROUP IN a bid to grow its presence in value-added products, Australia’s largest fresh meats processor JBS Australia has signed a A$1.45 billion conditional agreement to purchase Primo Group, which includes NZ based Premier Beehive. As the largest ham, bacon and smallgoods producer in Australia and New Zealand, Primo Group employees more than 3,000 people and owns the Primo, Hans and Beehive brands. JBS’ acquisition includes five processing plants across Australasia and will leverage Primo’s growing export operations throughout Asia, including China. “While it will remain very much business as usual for our employees, suppliers and customers, this transaction offers tremendous opportunities for a producer of high quality products like Primo,” says Paul Hitchcock, Primo Group’s CEO. JBS CEO, Wesley Batista, says the purchase is strongly aligned with the company’s global strategy and its move into value-added products with well known labels. “Primo Group is the leading company in this segment with strong brands and represents an outstanding opportunity to grow our business in Australia and internationally. We

are seeing strong annual growth in consumption of processed meat products with good prospects to increase exports of high quality convenience products from the Primo Group’s portfolio,” says Batista. n

founder, Malcolm Rands says the company previously rejected plant based biodegradable packaging as there are no suitable biodegrading facilities in the country and therefore the products would eventually end up polluting the recycling stream. Although the product is slightly more expensive, Rand says they will be able to make packaging thinner, without losing its strength, so costs should remain the same. n

SUGARCANE PACKAGING A JACKEL NZ NZ FIRST IN the pursuit of 100% sustainability, Kiwi manufacturer Ecostore has decided to grow its own packaging. Although the new product has been available for three years, Ecostore is the first New Zealand company to make the switch to sugarcane-based high density polyethylene (HDPE) plastics. The new sugarcane-based plastic is physically and chemically identical to traditional petrochemical plastic and 100% recyclable. Ecostore predicts it will save at least 639 tonnes of CO₂ from the packaging change, and has won two awards at this year’s National Sustainable Business Network Awards, taking out the Mega Efficiency category. Ecostore co-

NEW MONDELEZ FACILITY GEARED AT ASIAN EXPORTS MONDELEZ has opened a state-of-theart food and beverage facility in the east Melbourne suburb of Ringwood. The Asia Pacific Centre of Excellence has created 63 jobs and houses the largest food and R&D team in Australia, i n cl u d i n g

choice at more competitive prices.” The report also revealed the busiest trading day has moved from Thursday to Saturday and consumers are now opting to shop several times a week rather than one big weekly shop. Bananas were the top selling produce item of the past three months while the top selling grocery product was white toast bread. “What we’re purchasing for our pantry is changing too as we adopt global food trends. One particular category, coconut, once seen as niche, has moved mainstream internationally and its growth in New Zealand has been spectacular,” says Chambers. The report also found the most popular cut of meat in New Zealand is mince, closely followed by chicken pieces while the nation’s favourite ice cream variant remains vanilla. The top selling grocery and produce products are listed left. n

more than 100 food scientists, technologists and graduates. Officially opened by Victoria’s manufacturing minister, David Hodgett, the centre will focus on confectionery and hasten development of products for export to Asia. Hodgett says Mondelez’s new facility could also be used in collaboration with CISRO on ideas and solutions for the local food and beverage industry. n

TO CLOSE

JACKEL NZ is closing its operations and will cease trading in February 2015, following the Australian and NZ sale of the Tommee Tippee trademarks to Mayborn Group. The Tommee Tippee brand represents 70% of Jackel NZ’s business and sales of its existing brands Nad’s, Surgipack and Bushman were insufficient to sustain the New Zealand infrastructure. Mayborn Group, a UK baby products manufacturer and distributor, owns the Tommee Tippee trademarks in the rest of the world and has the Closer to Nature brand in New Zealand, distributed by Newborn Brands (NZ). Mayborn is currently seeking clearance from the Commerce Commission to acquire Tommee Tippee’s intellectual property rights and trademarks. If successful, Newborn will also distribute the Tommee Tippee brand on its behalf. Jackel NZ will continue to trade through to February with its other brands, which will then be represented by other suppliers. n

ALDI EYES UP NZ

ALDI Australia’s current group managing director, Tom Daunt, has been appointed to the newly created role of CEO Aldi Australasia. Effective April 2015, the new role signals the discount retailer’s intentions of further local and offshore expansion, which sources believe is likely to include New Zealand. Daunt’s appointment follows an announcement last month of a $700 million investment in Australia with two new distribution centres and up to 120 new stores across South Australia and Western Australia planned. Stefan Kopp will take over as group managing director for Aldi Australia and will report to Daunt in the meantime.

NEW SUN VALLEY APPOINTMENT

INGREDIENT suppliers Sun Valley Foods has appointed South African Brennen de Bruin as general manager sales and marketing. In the newly created role, de Bruin will develop the Sun Valley label and is likely to build its extensive product portfolio. A varied media strategy, including social media, is also being introduced. De Bruin is a globally experienced sales manager, having worked at Foodfirst and Spotless previously. “Sun Valley is an exceptionally strong brand with an endless amount of opportunities. I’ve been brought on board to build brand recognition and utilise the good reputation the brand has in the market,” he says.

COSMETICS BOOM IN SUPERMARKETS

MORE than a quarter of the 4.8m Australian women who bought make-up in the past six months, did so at a supermarket, according to new Roy Morgan research. That is more than those who purchased from a chemist, making supermarkets the main make-up supplier over all other channels. Woolworths and Coles now stock a wide range of own brand and big name brands at reasonable prices in a competitive market.

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INTERNATIONAL SPEAKERS PROVIDE GLOBAL INSIGHT A RECORD 360 delegates made the NZ Food & Grocery Council’s annual conference in Queenstown in November, probably the most successful of recent times. By the end of the three days it was clear the manufacturers and suppliers of New Zealand’s food, beverage, and grocery brands (worth $34 billion in domestic retail sales and $28 billion in exports each year) were in good heart despite a recent rough economic ride and signs that conditions are likely to remain challenging for some time. This was demonstrated by an unprompted unanimous vote of confidence in the work of the board and the chief executive which came from the floor of the conference. Retailing was the subject for many of the speakers, and it was an Australian and an American who caught the eye. The lessons to be learned from Ian McLeod’s story of his turnaround of Coles supermarkets were many. From stores that had different products and pricing (even from one suburb to the next), that placed no great emphasis on how fresh produce was, and had signs that intimidated shoppers and made them feel like they were not trusted, he turned it into a force to be reckoned with. From a chain that wasn’t listening to its customers it now puts customers “always first” and strives to make a visit to its stores an enjoyable experience. The successful strategy was based on offering: • the best customer experience • better value • quality fresh food • working-smarter stores • excellent availability of goods • goods sold and customers served with personality

Yanko Efremov & Zornitsa Zapryanova

FICOSOTA IN NZ

says Efremov. In New Zealand last FICOSOTA has entered the Kiwi month, Efremov and Asia marketing market with its flagship brand, Maretti. manager Zornitsa Zapryanova, met The Bulgarian company has aggressive with the company’s New Zealand expansion plans throughout Asia Pacific distributors, Acorn Group, and visited and North America with its extensive retailers in Auckland, Wellington and product portfolio encompassing the Christchurch. Zapryanova says the home & personal care, snacks & company supports all new launches confectionery and hygiene, disposable with heavy marketing activities. & tissue categories. Stocked in 50 Maretti’s launch will include in-store international markets, its Bruschette and office sampling, branded POS Maretti oven-baked bread circles are merchandise, digital banners and heavy being offered to New Zealand retailers above the line support rolling out early in five variants - Roasted Garlic, next year. Pizza, Tomato, Olives & Oregano, “We conduct extensive research Mushrooms & Cream and Mixed prior to entering new markets and have Vegetables – and have been on shelves tailored our product offering to suit for just over a month. Yanko Efremov, the New Zealand palate. Our brands Ficosota’s MDU Manager Asia, says the and products are high quality, unique company is looking to grow incremental propositions which are ideal for the sales in the bread snacks category with New Zealand market,” she says. its premium 150g and 40g packs. Ficosota is looking to launch Maretti “Our experience in Europe has in Australia early next year and is been that rather than taking share already in negotiations with Coles, Aldi from competitors we have taken and Woolworths. Future Maretti line share from other salty snacks such LOGO CONCEPTS BRAND IDENTITY - NATSONS (NZ) LIMITED extensions are already in the pipeline as as potato chips, which adds value to well as additional brand launches. n Maretti, our competitors and retailers,” TWO COLOUR LOGO

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Its key to supplying “stunning, quality fresh food” was to partner with local suppliers in arrangements in which everyone would benefit, especially shoppers. It also employed an advertising campaign, using oversized red hands, which was described as bulldog ads “because they were ugly but they worked”. Ian McLeod, who is the Group Commercial Director of Wesfarmers Ltd, the owner of

Coles, said the supermarket chain is now footing it with Woolworths and gaining customer share thanks to its uncompromising “shopper first” attitude. World-renowned marketing professor Michelle Greenwald gave a fascinating insight into how US manufacturers are thinking outside the square to meet the latest shopper trends. Mostly they are finding they need to cater to the fact that people are lazy and want nearly everything done for them: products such as pre-packaged peeled garlic and shelled boiled eggs, “cloud meals”, wholesome meals which are ordered on a smartphone app and delivered ready to eat, and fresh ingredients and recipes which couriered to consumers’ doors ready for prep and cooking. And for those who still prefer to do their own shopping, there are the online virtual stores where shoppers are taken into a “room” filled with groceries based on their typical buying habits where they can do their weekly shop which is then delivered to the home. Certainly, for lazy people it’s much easier than walking the aisles of big American supermarkets. Maybe it’ll be the next big supermarket thing to hit our shores. Murray Jordan of Foodstuffs North Island and Steve Anderson of Foodstuffs South Island also gave their annual update on their business, including Project Lightning and the Christchurch distribution centre move to Hornby. They also ran the closed one-onone sessions affectionately referred to as the “speed-dating sessions”, where manufacturers and suppliers got 10 minutes to talk about issues of importance to them. Like last year, these sessions were sold out, proving again just how valuable face-to-face contact is, even in this day and age of instant digital communication. n

Katherine Rich CEO, New Zealand Food & Grocery Council

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COUNTDOWN has locked down the price of its Signature Range bottled water, offering its new 600ml 24-pack for $10, less than 42c per bottle. Steve Donohue, Countdown’s general manager for merchandise, says the retailer has worked closely with its Putaruru supplier, New Zealand Quality Waters, to reduce the price by more than 42%. “Bottled water is a staple in many Kiwi households and we want to provide the most competitive offer out there. This is top quality, pure New Zealand spring water, at a great price that is locked down so customers can get it every day,” says Donohue.

With water sourced from the famous Putaruru Blue Spring, New Zealand Quality Waters’ collaboration with Countdown has resulted in an additional 14 jobs for the local community. “Working with Countdown has given us the stability to invest and expand our business with new product development such as this. We know this offer is going to be really popular with customers so we’ve also recently invested in new technology to produce our own bottles on site, and to have greater capacity and efficiency in our production,” says New Zealand Quality Waters’ owner Ian Riley. n

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COCA-COLA PURCHASES APPLETISER

PHILIP HAND HEADS TEGEL

THE Coca-Cola Company is set to acquire the Appletiser brand on a worldwide basis from South African multinational brewing and beverage company, SABMiller. As part of the US$260 million cash deal, CocaCola will also purchase or be licensed rights to a further 19 non-alcoholic ready-to-drink brands in Africa and Latin America. SABMiller will retain ownership of its non-alcoholic malt beverages in both continents in addition to its

PHILIP Hand, previously the Chief Operating Officer (COO) at Tegel Foods Ltd, has been appointed to head up the company. For some months he has been acting CEO and has now been confirmed in the position. He replaces John Lea who was appointed CEO in June last year but departed the company early in 2014.

SPECIAL K GETS TWO TICKS

SPECIAL K is one of the first cereal brands to receive the New Zealand Heart Foundation’s new Two Ticks accreditation. Kellogg marketing and innovation manager Julian Ng says the brand’s reformulation earlier this year was the first step in a new, healthier direction. “The new flake recipe is being used across all varieties of the Special K cereal range. It represents a step change for the brand within New Zealand, being the first time in its history that a recipe adjustment of this nature has been implemented,” says Ng. Deb Sue, the Heart Foundation’s Tick manager, says all products submitted for Two Ticks undergo independent analysis for nutrient content. “The Two Tick nutrition criteria are stringent and focus on identifying the core foods for a healthy diet – Kellogg’s Special K successfully meets the criteria,” she says.

supermarketnews.co.nz

Coca-Cola franchises in El Salvador and Honduras. The acquisition forms part of an agreement between Coca-Cola, SABMiller and Gutsche Family Investments, which will see the three companies combine its non-alcoholic RTD bottling operations in Southern and East Africa. Called Coca-Cola Beverages Africa, the new bottler will service 12 high growth countries, accounting for roughly 40% of CocaCola’s beverage volumes in Africa.

CONSTRUCTION TO START ON NEW COUNTDOWN

EXISTING REDWOODTOWN COUNTDOWN

AFTER waiting almost three years, work will begin on Redwoodtown’s new Countdown early next year. Located on the corner of Weld Street and Alabama Road, the new store will be twice the size of the existing Countdown, which will be converted into retail shops.

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The 3500sqm store will create up to 60 new jobs for the community with a further 63 staff members from the existing store offered positions in the new supermarket. Adrian Walker, Countdown general manager for property, says the retailer is pleased to be moving forward with its plans for a new store. “We’re delighted to be able to expand and modernise our offer for our local Redwoodtown customers. The store will feature Countdown’s latest new-generation design, including expanded isles, energy efficient fixtures and fittings and a full range of products,” says Walker. n

Expected to post annual sales of $2.9 billion, SABMiller will hold the largest stake in the new company, controlling 57%. GFI will have a 31.7% share and Coca-Cola Company 11.3%. n

UK GROCERY WARS HIT SUPPLIERS THE number of UK food companies entering bankruptcy is up 28% this year over 2013 as the supermarket industry goes through the bloodiest price war in the past 20 years. The supermarket groups are reported to be using food producers as the cannon fodder. Overall bankruptcy average in the UK has dropped 8% this year and reveals how much pressure the grocery sector is under. The top four supermarket chains are reporting average profit margins are now squeezed to 4.4%. n

NEW WORLD RETURNS TO HOWICK AUCKLAND Mayor Len Brown officially opened Foodstuffs North Island’s 100th New World store in Howick earlier this month. Located on the corner of Union Road and Wellington Street, the 3,484sqm store features 161 car parks, wide aisles and plenty of fresh food and grocery products. The store is being run by former New World Wanganui owneroperator Brendon Jones and has created 120 new jobs in the

community. Angela Bull, Foodstuffs North Island general manager, property development, says the co-operative is thrilled to bring New World offering back to the Howick community after a 17 year hiatus. “We have had incredible support and interest from the Howick community from when New World was first announced, and we are excited to be able to open the doors to the modern New World for our

customers to enjoy,” says Bull.

Below right: Owner-operator Brendon Jones with his family

PEST CONTROL GAINS MOMENTUM

MASTERPET’S Vitapet Evance flea treatment is a strong market leader with 73% market share in the grocery channel (Aztec MAT 28/09/14). Evance is an effective topical flea treatment for both cats and dogs and the company is expecting to gain sales momentum from October through to March, the height of the flea season. The treatment contains imidacloprid, an active ingredient which spreads over the skin’s surface rather than being absorbed, working to kill fleas within 12 hours and one application lasts for a month on dogs and up to four weeks on cats. The product is non-staining, non-sticky and has no strong chemical smell; it is safe for use on pregnant and lactating animals. Evance is part of the Vitapet range consisting of cat and dog accessories, treats, food and general animal supplies. Vitapet is a market leader in the pet care category, which is currently growing at 10%. Growth is being driven by an increased consumer awareness and the growing interest in animal health and welfare.

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NATURAL PESTICIDES A GLOBAL TREND

WORK BEGINS AT VOGELTOWN

CONSTRUCTION work is currently underway at Countdown Vogeltown with the store expected to open for trading mid next year. Located on Hori Street, New Plymouth, the site is being developed by local company Brooklands Developments and will include a new supermarket and adjoining retail outlets. The new store will create up to 80 new jobs in the city and feature a full-service bakery, service deli and seafood department. Countdown Vogeltown has been designed with the retailer’s latest features including wide aisles, expansive fresh produce department and energy efficient fittings and equipment.

INNOVATIVE MACHINE NEW TO NZ AS part of a $2.5 million upgrade, Accolade Packaging is installing a new Optima 8 Colour press in February. The Optima is able to reproduce short run photographic quality printing on any flexible plastic films or paper, with an emphasis on short run printing. The new printing press will give New Zealand the capability to run packaging jobs of this nature efficiently and at long run pricing. The Optima was first showcased in October last year and has won numerous awards in Europe for its innovative design. By utilising this new technology, Accolade Packaging can offer variable information on an existing print run with the ability to add additional information to existing plates, reducing origination and re-plating costs. “We expect this will increase our film sales by double in the first year alone. There is a significant number

ALDI AUSTRALIA HITS CRITICAL MASS IN MARKET

WITH 350 stores and over $A4 billion in sales, Aldi Australia has now reached critical mass according to a new report from international bankers Morgan Stanley. But while the company has proved hugely successful in Australia and putting pressure on both Coles and Woolworths, an Aldi spokesperson has been reported as saying it had no current plans for expansion into the New Zealand market.

of companies buying offshore directly and these are the companies we are keen to talk to, as we can now match the pricing and get the lead-time down to a few weeks rather than months, with a better product, all produced locally,” says Accolade’s general manager Clark Drury. The machine is currently being assembled in the Czech Republic, although the components are German manufactured. Accolade was approached by a local representative and offered this new printing option, which will cost the company just under $2 million. The Optima machine utilises less power and ink than conventional presses, ensuring environmental impact is reduced. Drury says the company is gearing up for the machine’s delivery. “Major efforts are being made; we are moving buildings to give us a much greater space to accommodate the higher work flow demands we will have.” n

A RELATIVELY new player in the NZ pest control category, Eproducts distributes the Ecosmart natural pesticide range. The 100% New Zealand owned and operated company is seeing early success with the international brand, the world’s leading producer of organic pesticides. Eproducts’ Andrew Officer says Ecosmart has been well supported by retailers and consumers in its first two seasons in the NZ market. “Consumers are increasingly looking for safe alternatives to the synthetic chemicals that currently dominate the NZ pest control category and this is certainly the trend internationally. If anything NZ is trailing behind markets such as the US, Canada and Europe,” he says. The extensive Ecosmart range uses patented plant based formulas and has wide consumer appeal. Officer says despite the higher cost of producing a natural product, category volume drivers such as the brand’s Flying Insect Killer and Home Pest Control are competitively priced against synthetic pesticide brands. Eproducts will be supporting the Ecosmart brand throughout the peak pest control season with a TV spend in excess of $100,000. n

TAKE THE 5+ A DAY CHALLENGE IN FEBRUARY

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

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IN 2007, United Fresh set up the 5+ A Day Charitable Trust with the children of New Zealand as the beneficiaries. The trust focuses on raising the consumption of fresh fruit and vegetables for good health. The beginning of a New Year is the perfect time to throw away bad habits and kick start a healthy lifestyle. Improving your wellbeing through healthy eating and exercise is the best way to shed unwanted kilos and to feel more energised. However, sticking to New Year’s resolutions can be difficult. The key is to set attainable, realistic targets that can be achieved every day so that it becomes a habit. Eating fresh produce daily is undoubtedly a good habit to have. The 5+ A Day Charitable Trust focuses on increasing consumption for fresh fruit and vegetables. This not only has excellent health outcomes, it helps to grow the horticulture industry, something that United Fresh is interested in. One way we do this is by inviting all New Zealanders to Fuel February and take part in our annual 5+ A Day Challenge. Starting on the 1st of February, the Challenge encourages Kiwis to add an extra serving of fresh fruit and vegetables every day during February, to boost their health and vitality. The Challenge is run through an app on the 5+ A Day Facebook page

where people can also win weekly prizes and go into the draw to win a $5,000 Bosch kitchen appliance package. Social media, especially Facebook, is a valuable tool in reaching and engaging household shoppers with children. Since the Challenge began, people have sent us photos of their favourite fresh seasonal produce. This year, to help build the social media presence around the Challenge, we are introducing the #5adayselfie. Photos uploaded to the 5+ A Day Facebook page will then be in the running to star in the 5+ A Day Challenge television commercial. February is a great month for the 5+ A Day Challenge. The variety of fresh, top-quality, locally-grown produce is abundant, making it easy for people to take part. The 5+ A Day Challenge can make a positive contribution in getting people to eat more fresh fruit and vegetables, which is vital in addressing the international epidemic of obesity and preventing chronic noncommunicable diseases such as cardiovascular disease. n

David Smith United Fresh www.unitedfresh.co.nz

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November 2014 Dec/Jan 2015

OIL CHANNEL CONVENIENCE LACK ADVENTURE

Z EXPANDS FOODSERVICE RANGE AS PART of its foodservice expansion strategy, Z Energy Ltd is trialling self-service frozen yoghurt as part of its on-the-go in-store food offering. The FroYo GoGo machines are being rolled out in five selected stations, four in Auckland and one in Wellington, with a further thirty stores expected to follow suit next year. Julie Malcolm, Z’s corporate communications advisor, says the new service provides a key point of difference in the competitive oil channel.

“We’re committed to delivering food options to our customers that go beyond the standard sandwich, pie and coffee offering, while remaining customer friendly and unique in our industry. We reckon when our customers are on-the-go, an option like frozen yoghurt alongside our convenient location and fast, friendly and hassle free service will be just what they’re looking for,” says Malcolm. The frozen yoghurt is being supplied by Kiwi based company, Monalisa, and the stations will also stock branded toppings, allowing existing supplier partners to deliver flavour options that Kiwis know and love. Consumers will pay a sharp price by unit, rather than weight, and will be able to stock up on toppings without extra cost. “Ultimately, we believe we’re offering a high quality product at a reasonable price and look forward to making it available more widely throughout our network,” says Malcolm. n

NEAR FIELD COMMUNICATIONS AND PAYMENTS ALL of us have an interest in the payments industry. Many of us charge for stuff; all of us pay for stuff. How easily and safely those transactions are achieved often is the determinate of how much a transaction can be ‘enjoyed’ (if that is the word for it!). In this regard, the long-awaited entry of Apple into the payments space has already changed the landscape of the payments industry and how customers (and merchants) will interact in the future. The ground has moved in a seismic way! I’ll explain. Apple’s September 9th announcement of ApplePay was sandwiched between the mediafriendly launch of the iPhone 6 and the even more hyped AppleWatch. Accordingly, ApplePay was almost missed by most commentators. But once ApplePay was thought through by technology and business experts, ApplePay is now recognised as the ‘sleeper’ announcement, with huge impact on technology, business and retail in the long term. As the business model was digested, Apple’s share price surged. Let’s understand why. SimApple’s pitch was that existing payment methodologies were based around the business models of either the banks or the merchants and

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especially the payment networks (Visa, MasterCard etc). By contrast, Apple had started (where they invariably do) with the user and worked back. The design brief was that consumers need an ultra-easy and ultra-secure method of payment, integrating their existing credit cards and bank relationship, but in a modern, mobile way. Lastly, their view was that the world of instore payment (at the Point-of-Sale) and payment over the web had to be integrated. Their solution uses their existing finger-print recognition capabilities (called TouchID, a biometric authorisation), a new hardware component built into all new iPhones (and also into the AppleWatch) and a very clever one-time, unique number that links the transaction to trigger they payment authorization and ‘move’ the money. Apple point out that their scheme is more secure than the ‘security code’ on the back of your credit card because cashiers won’t see your name, card number or security code. In addition, Apple will not see the detail of the transaction, the merchant will not know who you are unless you give them permission and the merchant will certainly not be able to see the credit card number. Lastly, ApplePay will work with existing credit card terminals that support Visa OWNED

NEW Zealand oil channel convenience stores are lacking in adventure, are boring and simply waste too much space. That’s the opinion of a visiting American marketing professor. Michelle Greenwald from New York University Stern and Colombia Business School, speaking at the Convenience Leaders Summit run by the NZ Association of Convenience Stores (ACS) in Auckland last month, said our c-stores simply didn’t carry enough categories and products to make the visit worthwhile. Overseas, oil channel stores had turned themselves into adventure shopping outlets with new ideas, one-off marketing promotions and strategies that were an ongoing surprise for petrol shoppers. She said in years past, c-stores had been food deserts but owners were now upping food quality as a major focus in the US. “Traditionally people haven’t craved any food offerings in c-stores, but this is changing rapidly as the competition hots up. “There has been a proliferation

of outlets competing with supermarkets and they are even encroaching on the c-store area – particularly coffee, ice Michelle Greenwald cream and yoghurt outlets, juice shops, small club stores and even those offering home delivery,” she says. She said c-stores were developing great in-store experiences and had moved into the healthy and fresh arena but included juice bars, cupcakes and coffee kiosks in many stores. This came with the blurring of many retail areas where drug stores now had sushi, juice bars, fresh produce and even on-tap beer. Those stores that didn’t have the space were even parking food trucks on their forecourts to offer hot foods. n

FOUR SQUARE UNDERWAY CONSTRUCTION has begun on the new Four Square in Coromandel township and is expected to open for business mid next year. Foodstuffs North Island has worked closely with Heritage New Zealand following the demolition of the 1960’s building previously on the site, assessing items identified as potentially dating to the 19th century. “While we had originally hoped to have this store open

PayWave or MasterCard’s PayPass, but will also work seamlessly on websites where merchants implement ApplePay. Simply hold your finger on the iPhone button and the transaction is authorised! In terms of enabling technologies, a key component is the first use of Near Field Communications, NFC, into the iPhone. This technology has been around for a while in Samsung smart phones and is what drives the PayWave / PayPass. However, its take up has been dismal on phones. “A technology looking for a problem to solve” is a common refrain). In store, NFC-based payments have also had to throttled back or somewhat crippled by an $80 per transaction limit, as there is no authorization process to protect the cardholder or the bank from a stolen card. By comparison, ApplePay promises a way to deal to both these problems, and, cleverly, Apple has not bought a fight with the existing ecosystem of incumbents (banks, Visa etc). The impact on the industry? Immediate. On launch day Apple confirmed that they had signed up >80% of all credit card acquirers in the US, and support from many large retail chains and online providers. Rollout plans to other parts of the world are planned before the end of 2014. And on the first weekend of iPhone 6 sales, they

for the coming summer, the work we have done with Heritage New Zealand and our construction team has been really important to achieve a great Four Square for the Coromandel community,” says Angela Bull, Foodstuffs North Island general manager property development. The current Four Square will remain open until the new store is completed.

sold 10 million ApplePay-enabled units. Within days eBay announced they were going to divest PayPal, the most profitable part of their business, to give it a fighting chance. The MCX group of merchants working on their own mobile payment system, to be called CurrentC, have been put under massive pressure to accept ApplePay by their customers. CurrentC has been in development since 2012, but it’s a much clunkier solution involving a the necessity to unlock their phone, launch the CurrentC app and scan QR codes. Likewise, here in NZ, a partnership between the banks and telcos to enable payment by mobile phone (a joint venture called Semble) is rumored to be scrambling to respond and get their new service out onto the market. Where this will go? I don’t know. I’m only a very interested observer, having worked in the past for Apple and been a strategic advisor to Visa. All I know is that brand owners, retailers and others in the FMCG sector should be across these developments – sooner or later (more likely sooner) they will have an impact on the sector.n

Peter Stevens CEO GS1 New Zealand

CONVENIENCE LEADERS SUMMIT CONFERENCE OVER 200 industry personnel, predominantly from the retail oil channel and suppliers, took part in last monthâ&#x20AC;&#x2122;s Convenience Leaders Summit in Auckland. Staged by the NZ Association of Convenience Stores, the event covered six major addresses followed by an industry dinner. The annual event this year included such speakers as Michelle Greenwald, marketing professor at New York University Stern and the Columbia Business School, Matt Elliott, managing director of BP New Zealand, Julia Laycock, 7-Eleven Stores head of marketing, Angeline Achariya from Mondelezâ&#x20AC;&#x2122; Australian Food Innovation Centre, Julian Hughes of the Business Leaders Health & Safety Forum, and former advertising industry leader Mike Hutcheson of the Image Centre Group. n

Angeline Achariya

Matt Elliott

Mike Hutcheson

Julian Hughes

Dec/Jan 2015

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storecheck Our mystery shopper was out and about in South Auckland this month with New World Waiuku coming close to receiving a perfect score. Overall,

COUNTDOWN, PUKEKOHE SOUTH

On a lovely day in late spring I enjoyed visiting the small town of Pukekohe, south of Auckland. First up I checked out the large new Countdown not far from the famous race track. A large car park with lots of parks was very neat and tidy. All the posters and windows were also very tidy and well presented. The fresh produce area was brightly lit and well stocked but the fish looked old and dry. The meat section was well stocked and all the Christmas stock was out and looked great. Half an aisle featuring apparel was something new that I hadn’t seen in too many stores. There were a few out of stocks across the store but overall very good. Interestingly for a new format store it had no self checkouts.

COUNTDOWN, PUKEKOHE CENTRAL Next up was the Countdown in the middle of town. Why does a town this size have two Countdowns? This was an older, smaller format store with a much smaller car park, however, I got a park easily enough. The first thing I noticed was that the lighting wasn’t as bright and didn’t show off the products anywhere near as well. Again the fish was very poor, however the fridges and freezers were all new, clean and bright. This store also had what appeared to be a new apparel section, which seems to be a new feature for Countdown. The store had lots of Christmas specials on display and the service through the checkout was quick and friendly.

Moving on I got a park in the busy Pak’nSave. The entrance was being refurbished when I visited, not that it was a problem. They didn’t have any baskets but they did have small trolleys, which I have not seen before. Immediately on entering the store I noticed how cold it was, certainly below a comfortable level. However, in-store was bright and airy with big clear signs displaying the specials. Everything was clean and tidy, although the floors were a bit scruffy and I got the impression that this was an older store. Overall it was good and I went through the self checkout.

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Lastly, I drove over to Waiuku and checked out the New World there. Clearly a new store, this was hard to fault. Everything was clean and tidy, no out of stocks. The store was beautifully lit and had a nice airy feel. All the Christmas stock and decorations gave a

CD CD P’nS NW Pukekohe S Pukekohe C Pukekohe Waiuku

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

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

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

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

STORE INTERIOR

CD CD P’nS NW Pukekohe S Pukekohe C Pukekohe Waiuku

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

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

• Adequately lighting/heating? (5 pts.)

• Instore signage clear adequate? (5 pts.)

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

• Was the floor free from unattended boxes/trolleys? (5 pts.)

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

STORE LAYOUT

PAK’nSAVE, PUKEKOHE

NEW WORLD, WAIUKU

STORE EXTERIOR

CD CD P’nS NW Pukekohe S Pukekohe C Pukekohe Waiuku

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

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

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

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

PRODUCTS

CD CD P’nS NW Pukekohe S Pukekohe C Pukekohe Waiuku

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

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

• Was all product packaging in good condition? (5 pts.)

• Was there a good range of magazines and cards etc and were they tidy? (5 pts.)

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

South Auckland has a high standard of stores with new apparel sections being a relatively new feature for Countdown supermarkets. lovely seasonal feeling. The fish section had a display of plastic toys with the prawns that looked really fun. Salads in the deli section were bright, fresh and appealing. Service through the checkouts was a bit slow and the ATM in the entrance was not working, but other than that, a great place to shop with a couple of small points, but I just couldn’t fault this store. n

www.supermarketnews.co.nz

STAFF

CD CD P’nS NW Pukekohe S Pukekohe C Pukekohe Waiuku

FRESH FOOD

CD CD P’nS NW Pukekohe S Pukekohe C Pukekohe Waiuku

• Did the produce look fresh? PRODUCE (5 pts.)

4 4 4 5

FISH (5 pts.)

3 3 4 5

MEAT (5 pts.)

DELI (5 pts.)

BAKERY (5 pts.)

• Was there a full range of produce? PRODUCE (5 pts.)

4 4 4 5

FISH (5 pts.)

3 3 4 5

MEAT (5 pts.)

DELI (5 pts.)

BAKERY (5 pts.)

4 4 4 5

• Was the Fish Counter staffed? (5 pts.) 5 5 5 5

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

4 5 4 5

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

• Was there anything or anyone who stood out? (5 pts.)

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

8 7 8 9 • Overall shopper experience (10 pts.)

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

3 5 4 4

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

4 5 4 4

• Was the Deli Counter staffed? (5 pts.) 5 5 5 5

HOW THEY SCORE?

4 4 4 5

CD CD P’nS NW Pukekohe S P ukekohe C Pukekohe Waiuku

169 161 Maximum available score: 200 pts

157

195 TOP SCORE

TO ORDER PHONE CONTACT YOUR SIMPLY SQUEEZED REPRESENTATIVE OR 06 836 7066 Dec/Jan 2015

I 13

h&baisle VOLUM EXPRESS ADDS TO RANGE

L’OREAL’S Maybelline New York brand has increased its Volum’ Express range, launching Colossal Pumped Up mascara. The double-curved mascara features an extra-wide brush filled with Maybelline New York’s highest collagen concentration for big, bold lashes with no clumps.

GSK ACQUIRES NOVARTIS AG

GLAXOSMITHKLINE will acquire the consumer healthcare business of Novartis AG, following clearance from the Commerce Commission. The two merged companies will trade in New Zealand as the newly formed GlaxoSmithKline Consumer Healthcare Ltd. Novartis’ Kiwi consumer healthcare division had previously been run from Australia and despite an overlap in several markets, including the wholesale supply of systemic pain relief products and cold sore treatments; the Commission says the merger is unlikely to substantially reduce competition in the sector. “The merged firm will continue to face competition from a number of existing suppliers. We also consider that the merging parties are not close competitors in any of the relevant markets. We are therefore satisfied that there is unlikely to be a substantial lessening of competition as a result of the acquisition,” says Commerce Commission chairman Dr Mark Berry.

BB CRÈME FOR HAIR

P&G’S Pantene brand has launched Ultimate 10 BB Crème for Hair in a 135ml bottle. The leave in treatment delivers 10 hair health benefits in one product and can be used on wet or dry hair. Pantene’s multitasking treatment contains Pro-V and works to moisturise and soften hair, preventing split ends and strengthening hair against breakage.

NEW L’OREAL BLUSHES

MAYBELLINE New York’s Face Studio line has been extended with two new products joining the range. Master Hi-Light is a collection of blushes and bronzers with a multi-tonal shimmer palette. The new addition is ideal for highlighting and contouring and is available in four shades. A portable cream stick, Master Glaze Blush is infused with shimmer pearls and shea butter, adding a dewy shine to cheeks.

NEW ROSEHIP ADDITIONS

MIX Limited has added to its top selling, natural skincare offering with four new products joining its Rosehip by essano range. A facial exfoliator, hand crème and SPF 15 moisturiser hit shelves late last month alongside a larger 45ml bottle of Rosehip by essano’s certified organic rosehip oil. Offered in a 100ml tube, the brand’s facial exfoliator is soap-free and contains Rosehip Bio-Exfoliating granules to lift and clear away dead surface skin while Rosehip by essano’s hand crème features the brand’s rosehip oil, shea butter and jojoba to hydrate and lock in moisture. Its SPF 15 moisturiser is non-greasy and blends Vitamin E, natural botanical extracts and rosehip oil.

LIP PENCIL

BLEACHED NEONS

L’OREAL has introduced limited edition Bleached Neons nail polishes to its Maybelline New York Color Show range. Saturated in pure neon pigments and washed out with a layer of white, the new pastel nail polishes offer long lasting, chip resistant colour with an electric kick. The Bleached Neons range is sold in four shades.

COLOR Drama Lip Pencil has joined Maybelline New York’s Color Sensational range. Offered in 10 dramatic shades, Color Drama Lip Pencil contains super saturated pigments in a semi-matte finish. The slim lip pencil provides vibrant, velvet colour and is suitable for contouring. n

TOPPA TAKES TOP SPOT BUT TRUMPET STILL TIP TOP – SUCCESSFUL BRANDING THAT LASTS THE DISTANCE

WHILE it can be difficult to measure brand success, a Facebook campaign to relaunch a product that has not been available for a number of years surely provides a good indicator. For Tip Top that is exactly what has kick-started the relaunch of the Fruju Tropical Snow and Classic Mint Trumpet. After successfully relaunching the Strawberry Toppa last year (resulting from a vote for New Zealand’s favourite ice cream) fans rallied together in support of the second and third placegetters. And Tip Top listened. As brand identity goes, they don’t get much stronger than the Trumpet - an iconic New Zealand ice cream introduced in the 1960s and still hugely popular today. But what makes these brands so successful is they are not simply a memorable word, they include a combination of unique branding elements (a number of which can be registered as trade marks) which sets them apart. A Trumpet or Fruju Tropical Snow will no doubt bring to mind the unique ice cream shapes, colours, slogans and advertising campaigns, in addition to their brand name, and

of course, the product itself. The Trumpet may specifically bring to mind Rachel Hunter in a convertible in the “you can’t beat a trumpet” advertisement, or the togs or undies “simplifying summer” brand campaign. While Fruju Tropical Snow may remind you of people swinging from the side of a yacht to the OOH! AHH! OHH! song. Both provide excellent examples

therefore it is important to carefully consider your branding. So, what makes a good brand? Creating a good brand identity and differentiating yourselves from your competitors is key. A good trade mark should be original, memorable, easy to pronounce, and convey the right image to consumers. An option is to develop your own newly coined word, such as, Microsoft, Nike, Coca-Cola and Google, or alternatively, it can be equally effective when an ordinary English word is applied to dissimilar products, such as, Apple, Amazon, and Subway. Arguably these words have acquired such strong secondary meaning based on the success of the brands that consumers may now associate the word with the product before its defined meaning, for example, Subway sandwiches, before underground railway. These examples have shown there are a number of options to consider when developing a brand, and a numerous ways of differentiating your product from

Your brand is your first contact with your target market, and their first opportunity to form an opinion based on brand alone. . .

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of campaigns which have helped to build, and maintain a reputation in products which have remained largely identical for 50 years. In most cases your brand is your first contact with your target market, and their first opportunity to form an opinion based on brand alone, OWNED

those of consumers including with a logo (Nike tick), slogan (“just do it”), unique product shape (the trumpet ice cream), and all can be registered as trade marks. Having registered trade mark protection not only secures your exclusive use to the trade mark, it also acts as a deterrent to third parties from using confusingly similar brands. Brand protection can also be useful for purposes of licencing the brand to third parties, while retaining ownership in the brand. Whether it be a brand name, logo, slogan, or shape, all are capable of being registered as trade marks. We recommend registering your trade marks as early as possible to secure exclusive rights to use the trade mark throughout New Zealand, and further abroad. If you would like further information, please contact a Baldwins representative. n

Sophie Thoreau Senior Associate, Baldwins Intellectual Property

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World

SIAL 2014 LOOKS AT GLOBAL TRENDS

TOUR

World Tour by SIAL 2014 was a global tour of major retail and consumer trends for 2015. Held in Paris at the SIAL exhibition, the World Tour saw journalists from selected b2b retail grocery magazines across 28 countries attend. Each country submitted their thoughts, vision and analyses of retail and consumer trends for 2015. The aim was to gain a global overview and their views are summarised below.

USA Retail Trends: Grocery chains and third-party providers are launching same-day grocery delivery services while stores are adding pick-up options such as Click and Collect to their standard online offering. Consumer Trends: Portable Satiation - Meals are being replaced by snacks or mini meals eaten on the go. Product: Klondike Rose Express. Microwave steam potatoes that can be seasoned in any way and take only six minutes to cook in the microwave launch in the upcoming months. For more information please visit www. woodenspoonfreezery.com

NORWAY

POLAND

Retail Trends: There has been a dynamic development of convenience stores. The Polish retail trade is fragmented with 95% of grocery stores still belonging to the traditional channel that controls around 45% of the country’s retail food turnover. Since 2013, the discounters have been making rapid inroads into the market. Consumer Trends: Polish consumers are concerned with health and quality: they are increasingly seeking out fresh products as well as healthier and high-quality options.

supermarketnews.co.nz

TURKEY

Retail Trends: Innovative retail strategies are being sought to meet changing consumer demand. E-commerce is developing rapidly. Consumer Trends: Practical products; ready-to-use, practical packaging, complementary products and snacks. Ready-to-use products are replacing traditional products. Product: Superfresh Mini Rulo Borek. Fresh potato, spinach, or feta cheese rolls in thin, crispy pastry.

AUSTRALIA

Retail Trends: Soft discounters are increasing market share, now standing at 59.7%. There are four main retail players: NorgesGruppen (39.3%), REMA 1000 (23.1%), Coop (22.7%) and ICA (11.1%). Consumer Trends: Health and convenience remain strong trends among both young and old consumers. Increasing interest in foreign foods is still one of the winners on the Norwegian market. Product: Grov Fiskeburger. Natural and nutritious fish burger with the highest fish content available on the market. The product is full of flavour and has a unique aroma.

Product: Mleko Wiejskie Piatnica. This milk is micro filtered and pasteurised at a low temperature, ensuring that its most valuable properties are retained.

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Retail Trends: As one of Australia’s largest supermarket chains, Woolworths has increased its uptake of big data, allowing the retailer to tailor the shopping experience to its customers. Consumer Trends: Australia has the highest uptake of digital and mobile users in the world. Its shoppers are well informed and expect high quality, trusted products. They want products to be innovative and locally sourced, premium gourmet and have health benefits (low fat, no sugar, glutenfree, dairy-free, high protein, low carbs, and on-trend super grains). Product: Sunrice Health and Wellbeing Range. A range of rice products with on trend blends of super grains with functional benefits.

GREECE

Retail Trends: An increase in the number of shops dedicated to traditional Greek products as well as new online outlets selling traditional Greek products that previously were only available in certain parts of the country. Consumer Trends: 77% of consumers have reduced eating out and are cooking at home, increasing grocery food purchases. OWNED

Although Greek consumers are watching their budgets, they don’t hold back on paying for quality food to share at home with family and friends. The Mediterranean diet is also being seen as a healthier choice. Product: Agrino Bistro Risotto with Greek Red Saffron. A simple creamy risotto for busy consumers who still want to a play a role in the preparation of meals.

NETHERLANDS

Retail Trends: One of the biggest impacts on the Dutch market has been the opening of the Jumbo Foodmarkt in Breda - a supermarket with many foodservice elements and an emphasis on freshness. Consumer Trends: People are looking for convenient, healthy products. Due to the desire for convenience, online food shops are increasingly being visited. Product: Amstel Radler. More than half (54.8%) of supermarket customers who buy this product will repurchase the item at least once more after their first purchase.

CHINA

Retail Trends: Home delivery services have become popular for food retailing in China. Consumer Trends: Some enterprises in the high-end food and dining industries have begun to shift their market focus onto mass consumption. Product: Hibiscus Crab stick. This product has a smooth texture and retains the taste and nutritional value inherent in seafood. Sales in 2013 set an outstanding record for the category.

FRANCE

Retail Trends: In March this year Intermarche tested a concept which saw ‘ugly’ fruit and vegetables sold 30% cheaper than standard produce. The campaign is in line with the European programme to tackle food wastage and has been so successful that the retailer extended the test. Other retailers have followed Intermarche’s lead.

Consumer Trends: FMCG companies have succeeded in holding their ground. In the first half year, turnover increased by 1.6% to €81.4 billion and by 0.3% in volume (source:IRI). In 2014, the key fact was the price war between retailers, which led to deflation (-1%). Product: Poudre De Tomate. A tomato powder that can be used to make a concentrate, puree, coulis or soup, depending on how much water is added.

IRELAND

Retail Trends: 2013 was a year of major change in the Irish grocery industry, as the Superquinn retail brand was discontinued. Aldi and Lidl continue to gain ground on the three major retailers and SuperValu launched its first ‘drive through’ store earlier this year. Consumer Trends: With a quarter of 11-year-olds clinically obese, manufacturers and suppliers are seeking to reformulate their products. Product: Popcorners. Crisps made from popcorn and with 57% less fat than typical crisps, the product range is meeting the growing demand for healthier snacks.

JAPAN

Retail Trends: In Japan, there is roughly one supermarket for every 7,000 people. Main supermarket chains have been developing small format stores destined to open in city centres with high population concentrations. Consumer Trends: Japan has entered a ‘super-aged society’ in which one in four of its population is at least 65 years old. Increase in the number of single households is particularly high and with more women joining the workforce, time spent in the preparation of evening meals is not as long as it used to be and there is a growing demand for quick and easy items. Product: Maruchan Seimen Udon. Udon noodles are a national dish in Japan.Offered in instant noodle form, in the same quality found in Japanese restaurants, the dish can now be enjoyed instantly at home.

ITALY

Retail Trends: 2013 was yet another year of economic crisis in Italy and for the first time the major retailers recorded a fall in sales. Consumer Trends: In 40 years, expenditure on food has fallen from 35% to 15% of total consumption. The Italian consumer is more interested in cheaper products and brands, on the lookout for discounts and promotions but without giving up on quality or authenticity. Product: Il Tramezzina Fresco. A premium, innovative, handmade product which combines total freshness and maximum quality, promising to change consumer perceptions of the classic sandwich.

CZECH REPUBLIC

Retail Trends: The general market trend is towards smaller formats. Small, specialised stores are growing in popularity, while large formats tend to be getting smaller. The space for a number of categories is decreasing, and shelf life is getting narrower. Consumer Trends: Consumers are more attracted to products that are properly made, have a link to tradition and are easy to prepare and consume. Product: Poctive Kostelecky. The quality of each product is guaranteed by the signature and photograph of the respective company worker.

UNITED KINGDOM

Retail Trends: Asda has trialled a self-scan checkout that it claims is able to scan up to 100 items a minute. Many retailers including Asda, Waitrose and Tesco have installed click and collect facilities at London Underground tube stations. Consumer Trends: Consumers are cooking for more at home products and show a growing interest in high protein items. Product: Snack egg. This is a shelled and ready-to-eat hardboiled egg. It is designed to provide a convenient snack for consumers on the go.

BELGIUM

Retail Trends: The Hard Discounters are gaining traction over the big three (Colruyt, Delhaize and Carrefour). Consumer Trends: Belgian consumers are hedonists, and demanding ones. In times of crisis, they consume less in foodservice

and more on at home consumption with cooking becoming fashionable again. Their lifestyle makes them sensitive to practical meal solutions which they want to be natural and tasty. Product: Dagelijkse Kost – Jereon Meus. A ready-to-cook range which comes complete with ingredients needed to prepare a meal for two in just a few minutes

AUSTRIA

Retail Trends: KochAbo - a home delivery service sending fresh, pre-portioned ingredients including recipes, directly to the consumers’ front door. The delivery service works on a subscription basis and offers a weekly alternating meal plan. Consumer Trends: Development of new products for people with food intolerances (lactose-free, gluten-free, etc.) while convenience fresh foods continue to advance. Product: Extra Ohne Fleisch. A meatless sausage product range based on milk and plant protein with the same flavour profile of a traditional sausage.

BRAZIL

Retail Trends: Two store formats are winning market share - small stores and cash and carry. Small format stores offer convenience, good location and focus on daily fresh products while cash and carry or “atacarejo” outlets provide heavy-use or bulk products in large quantities. Consumer Trends: In Brazil, self-indulgence, wellbeing and sophistication meet health and convenience. Product: Fibz Kirin Guarana & Fibres. Brazil’s first soft drink containing 25 % of the daily fibre needs of an adult.

GERMANY

Retail Trends: The product range in discount shops is being upgraded with more quality household brands such as Coco Cola and Haribo entering the market. While hypermarkets are losing market share, the smaller supermarkets are regaining strength. Consumer Trends: Convenience and ready-to-cook concepts are increasingly in demand. Smallerportion products are becoming more important as the number of single-households increases. There has been a revival in both regionalism and locality as consumers want to know where a product comes from and who produces it. Price remains a crucial issue for customers.

Product: Alpro soya yoghurt alternative with strawberries and rhubarb, a vegetarian substitute for dairy products.

CANADA

Retail Trends: There is a determination among Canadian retailers to take advantage of the growing social media activity by developing interactive websites and applications that offer specific products and promotions to customers on an individual basis. Consumer trends: Canadians are reluctant to pay regular prices for groceries, 36% of all grocery sales are now purchased at a discount. Overall health issues are predominant in Canadian’s purchases. Product: Sexcereal. A truly functional food with two variants formulated by nutrition professionals, one specifically for men and one for women.

HUNGARY

Retail Trends: Last year Auchan finalised the takeover of Cora shops. In terms of sales channels, the continuous expansion of hypermarkets came to an end, while supermarkets and convenience shops grew. E-commerce became more and more significant; Tesco launched an online service. Consumer Trends: Most Hungarian consumers have switched to cheaper food and people are cooking at home more frequently. As lifestyles are changing, products that offer greater convenience and enjoyment become more important, including such features as decorative design and domestic flavours. Product: Gegerly. The new glutenfree products are made from natural ingredients and represent traditional flavours without preservatives or other artificial additives.

ARGENTINA

Retail Trends: The strongest trends are determined by proximity, shopping experience and the battle between price and special offers. Consumer Trends: Consumers tend to choose healthy but flavoursome products. Another trend highlights more functional products that are practical and easy to prepare. Product: Patagonia Frio. The first tea ready for cold consumption, enhanced by Stevia, a natural sweetener.

INDIA

Retail Trends: International players can directly invest in Multi Brand Retail in India. Modern stores are continuing to offer varied SKUs and special prices to attract customers. Consumer Trends: Rapid urbanisation, increased literacy and growing numbers of working women, changing lifestyles and rising per capita income are all leading to rapid growth and new opportunities in the food and beverage sector. Product: Creambell. The Danish ice-cream with choco flakes sandwiched between chocolate biscuits is a first in the Indian market.

NEW ZEALAND

Retail Trends: The constant redevelopment and refurbishing of the country’s supermarkets have incorporated the best of international designs, store layouts and product plans. Consumer Trends: Food consumption in New Zealand is rising at 3% per annum with major trending towards allergy-free, low calorie, gluten free and healthy options. By contrast, consumers are also spending more on indulgent gourmet lines. Product: Nice Cream. Gluten, nut, soy and GMO free. Nice Cream has grown to be New Zealand’s third largest ice cream brand.

SOUTH AFRICA

Retail Trends: Most retailers now use loyalty cards to monitor consumer purchases; Pick-n-Pay Express Stores were opened at garages to provide 24-hour outlets. Consumer Trends: Customers are choosing cheaper products due to budget constraints, as well as readymade meals and health foods. Product: Vida Longa Long Life Soft Serve. A liquid long-life mix made with fresh milk and cream that requires no refrigeration and has a nine month shelf life.

RUSSIA

Retail Trends: Fresh produce remain one of the largest categories. Many retail chains have begun to directly supply fruits and vegetables as a way of offering lower prices and improved quality. Consumer Trends: Consumption levels are falling with many food categories showing no signs of growth. However, frozen food, Dec/Jan 2015

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World

SIAL 2014

TOUR

by ready-meals, quick-cook porridges and cereal grain in cooking bags are all seeing a growth in demand. Product: Baked Museli Crunchy Bionova. With no added sugar, this product is a delicious and healthy breakfast that contains grain products.

SPAIN

Retail Trends: There is a strong competition in low-cost offers. Proximity and urban formats are competing in the traditional format.

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Consumer Trends: Spain is seeing a trend towards more responsible consumption; an awareness of food wastage and dietary balance, and more fresh and local products. Product: Campofrio Gama Snacks. A typically Spanish product derived from dried cured pork or turkey. Individually packaged, the product can be consumed either at home or as a snack.

consider health to be the key consideration while shopping. Product: Telma Whole Corn Wheat Cornflakes. A core product in the Israel home: the first 70% whole corn wheat cornflakes. A break-through innovation which responds to the growing demand for wholesome nutrition.

ISRAEL

Retail Trends: The convenience offered by neighbourhood hypermarkets is influencing the consumption and buying habits of the Portuguese people. Consumer Trends: There is a tendency to buy food for preparation at home to take to

Retail Trends: Key retail concepts in Israel are online shoppaing and social media. Consumer Trends: 20% of consumers are ready to pay more for innovation and 65% of them

work and school. While consumers want to buy cheaply, they are also aware of convenience and health factors. Product: Milka Choco Twist. A range of cakes from Milka which are ideal as a snack at school or in the office.

PORTUGAL

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FIRST TIME SUCCESS FOR HEILALA TAYLOR Preston showcased its new range of processed meat products at the recent SIAL Paris trade show. The company has a long history of exhibiting – attending the biannual show at least 10 times in the past. Chris Pyke, Taylor Preston’s marketing manager, says the event is an ideal opportunity to meet new and existing customers face-to-face. “It’s important that we have a presence at the show to support our

SIAL PARIS: A NETWORKING HUB

French business. Most of what we do is catch up and update existing buyers on the market, we can see more people at a show in three to four days than we can travelling all year,” says Pyke. n

HEILALA Vanilla exhibited at SIAL Paris for the first time this year, showcasing its vanilla products as part of the Pacific Trade stand representing Tonga. The company received six nominations for its Vanilla Paste and Vanilla Syrup within three categories in the SIAL Innovation Awards, recognising product creativity and innovation. Heilala’s vanilla products were selected from thousands of competitor lines and noted for recipe composition and flavour. “It was exciting for us to be exhibiting alongside 6,000 industry suppliers and 150,000 visitors from over 200 countries. It provided an opportunity to build sales contacts and gain valuable insights into global food innovation and trends including packaging and product innovation which we can apply to our business based in New Zealand and Tonga,” says Jennifer Boggiss, Heilala Vanilla CEO.

PO Box 37 140 Parnell, Auckland 1052 New Zealand • Ph (09) 304 0142 ext 711 • Mob 022 414 2549 • Fax (09) 377 2794 email bret@reviewmags.com

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WHAT WE DO: We script, produce, shoot and edit any style of video for: • television commercials • in house • internet web • corporate training • testimonials • DVD’s

THE DIFFERENCE BETWEEN THE GOOD AND THE BEST

AROUND New Zealand, there are hundreds of small producers in a wide variety of grocery categories who began, and often continue, their lives in the variety of markets that have sprung up. A number, with more marketing skills, have moved their limited production levels into local grocery and delicatessen outlets. And some of those will eventually develop into national products on a small scale until they get the financial backing and sales skills to take the items further. For grocery, they are another opportunity.

WOODEN SPOON BOUTIQUE FREEZER FOUNDED in 2011 by Sharon Galeon and Midori Willoughby, Wooden Spoon Boutique Freezery produces hand-crafted ice cream from high quality, seasonal local ingredients. The company started from humble beginnings with ice cream delivered to registered customers each month before moving into retail with 500ml pottles in 2013. Early this year Wooden Spoon launched its ice cream cookie sandwich in a range of flavours and has already proved popular with consumers. Wooden Spoon’s ice cream is hand crafted in small batches at the company’s commercial kitchen in Wellington. The range consists of unique flavour combinations often using other New Zealand artisan products, like Peoples Coffee, Doughmomma cookies, Whittaker’s chocolate and Zany Zeus organic milk and cream. The ice creams contain no preservatives and the company produces its own mix-ins like the hokey pokey and ANZAC oat clusters. Seasonal flavours are often released with the company taking advantage of the availability of fresh ingredients during those times. “Our customers consider not only freshness and quality, but also what kinds of ingredients go inside their food, where is their food coming from and how is it made. If it tastes great, doesn’t contain junky stuff, is made locally and is affordable to them, why would they buy the cheaper option that’s packed with preservatives and lesser quality ingredients?” says Willoughby. With two full time employers and a casual worker on hand, Willougby says the company is continuously experimenting with new products and flavours. New products are set to launch in the upcoming months. For more information please visit www. woodenspoonfreezery.com

BLACK GARLIC MAN LTD WITH no previous experience in food manufacturing, Wayne Harris established Black Garlic Man Ltd earlier this year. Based in Whangarei, Harris produces black garlic using a secret process that is referred to as enzymatic fermentation, using no chemicals or other additives. Black Garlic Man garlic is produced and farmed in accordance with organic principles, this production process results in increased levels of antioxidants and amino acids, in particular S-arylcysteine. After four years of product development and trialling, Harris picked up an award at this year’s Cuisine Artisan Awards, and is also producing

than traditional black or green tea and is lightly sparkling. The drink is not pasteurised, making it a functional probiotic. With a strong focus on the Kiwi market, Archner says he has no plans to export the product. “Our products’ main characteristic is that it is not pasteurised, this makes exporting a challenge in terms of shelf life and also import regulations in many countries,” he says. Archner is currently working on a smaller 330ml version of the drink, and plans to launch this in the summer. For more information please visit: www.vibrantearth. wordpress.com

DELICATO A SUBSIDIARY of Eco Egg Co, Delicato has created a new convenience food category with the launch of pre-cooked eggs in a six pack. The free range boiled eggs will soon be joined by shelled eggs commercial quantities of black garlic for selected retailers and restaurants around New Zealand. Harris says more consumers are looking to support small, boutique manufacturers. “Artisan products are growing in popularity as their uniqueness is not compromised by the demands of commercial production,” he says. While Harris is not presently exporting his product, he is open to the possibility of it in the future. He says once the brand is soundly established, there are plans to introduce new products in the future. For more information please visit: www.blackgarlicman.co.nz

RENE’S KOMBUCHA RENE Archner and wife, Lydia Miller, launched Rene’s Kombucha in April 2013 after friends convinced the duo to retail the range of fermented beverages. Currently sold throughout New Zealand, Rene’s Kombucha is offered in Red Berry, Pomegranate and Lemon variants. Available in 750ml bottles, René’s Kombucha is fermented for six to eight days, allowing essential nutrients such as active enzymes, viable probiotics, amino acids, antioxidants and polyphenols to form. Known for its health properties, Kombucha is said to originate from China and works with the body to restore balance and vitality. Unlike other products available on the market, Rene’s Kombucha’s uses organic fruit teas rather

in several variants including traditional Manuka cold smoked, pre-salted and seasoned, lightly pickled and marinated flavours. The brand’s shelled eggs use only natural ingredients, including certified organic products as well as locally grown and imported specialty foods. Delicato director, Mike Schellkes, says interest from the grocery sector has been strong and the product is already stocked in Foodstuffs, Nosh and Moore Wilson. ”Free range eggs are one of the most nutritious foods on the planet and nature’s original convenience food - even coming with their own natural packaging,” says Schellkes. Eco Egg Co has been supplying Kiwi and offshore markets with bio-organic and free range eggs for more than two decades and its free range eggs contains healthy fats, protein and a number of essential vitamins. The company also plans to export its boiled egg products to Hong Kong and Singapore.

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newproducts NEW HERBAL DRINKS

FRUIT & SPICE RETURNS

DUE to public demand, Goodman Fielder has reintroduced its Vogel’s Fruit & Spice loaf in extra thick slices. Made with grains, sultanas, currants and spice, Goodman Fielder removed the product from shelves last year but has since been inundated by consumers asking for its return. Vogel’s marketing manager Jo Sutherland says the initial consumer response to the reintroduction of Fruit & Spice loaf has been incredibly positive.n

CH’I has introduced two new variants to its beverage portfolio with Herbal Lemon and Lemongrass & Lime being offered in 330ml and one litre options. The new sparkling additions are handcrafted and have less than half the sugar of a soft drink. The launch coincides with new look 330ml green glass bottles being rolled out across the brand’s existing range. n

BBQ SPRAY GETS PUSH

PREMIUM NUT MIX

WITH summer approaching Hansells is pushing its Alfa One BBQ , Grill and Pan Spray. Launched earlier this year, the butane free, naturally propelled spray contains 100% Alfa One rice bran oil and is suitable for

BROOKFARM has introduced its premium Brothers Blend Entertainer nut mix to the Kiwi market. Available in a 75g pouch, the product contains a medley of almonds, pistachios, pecans, hazelnuts, macadamias, pumpkin and sunflower kernels which have been oven roasted with sea salt and maple syrup. Brothers Blend’s nut mix is peanut, gluten and preservative free and is paleo friendly. n

NEW SALAMI

PREMIUM SAUCES

EURODELL has added to its smallgoods offering, launching Tibaldi Sopressa in mild and hot chilli options. The premium traditional salami hails from the Veneto region in Northern Italy and under the Tibaldi brand has been manufactured in Australia since 1934. Made from course ground pork and beef, Sopressa contains selected herbs and spices and is ideal for use on pizzas or in pasta dishes.n

GLASSEYE Creek has launched its Munitions grade range of condiments. The line includes three new craft brewed sauces that are all natural, gluten free and contain no artificial flavours. Glasseye Greek’s new offering features .50 Cal, .308 Cal, and .12 Cal variants with flavour profiles including wood roasted vegetables, fruit and chilli. n

NEW OTTOGI PRODUCTS OTTOGI has added to its sauce portfolio, introducing an extensive range of locally made condiments. Encompassing 12 SKUs, Ottogi’s new range includes sauces, marinades, dipping sauces and dressings all packaged in distinct yellow lids for great stand out on shelf. The brand’s newly launched sauces include Teriyaki, Tomato, Sweet Chilli, Honey Mustard, Gold Lite Mayonnaise, Aioli, Gold Mayonnaise and Barbeque variants. Ottogi’s Korean style marinades and dipping sauces include Sweet Spiced, Sweet Soy and Tangy options while a Sesame dressing has also been added. n

PROPER ADDS KUMARA CRISPS

PROPER CRISPS has extended its premium crisp offering, launching Kumara Crisps in 40g and120g bags. The 100% natural crisps are batch cooked by hand in Nelson using a medley of Kaipara red, orange and gold kumara. The lightly salted crisps are gluten, dairy, MSG and GMO free and are suitable for vegans.n

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high temperature cooking. Hansells senior brand manager Susan Harvey says the spray is ideal for consumers looking to use less oil. “With Alfa One BBQ , Grill and Pan Spray there is no horrible taste or smell and no white foam. Instead, we are pleased to offer a high quality, natural, nonflammable propellant, perfect for high temperature cooking – in and outdoors,” says Harvey. n

MARCEL’S CATEGORY FIRST IN a worldwide category first, Van Dyck Fine Foods has introduced Tandums from its Marcel’s brand. Designed to be eaten cold, the innovative new product features mascarpone filling sandwiched between two hot cakes. Available in chocolate and passionfruit flavours, Tandums are individually wrapped and have a five day shelf life.n

newproducts

LAUNDRY PODS

SAVOURY MIXES JOIN LOVE CAKE

IN a New Zealand first, Earthwise has added environmentally gentler Laundry Liquid Pods to its natural cleaning and laundry product range. The plant and mineral based pods are suitable for both top and front loader washing machines and are offered in Summer Breeze or Fragrance Free variants. The 500g packs of 20 pods are designed to be thrown directly into the wash with the wrapper dissolving when in contact with water, even in cold washes. “They complement the Earthwise laundry range because they give another option to people who are short on time and want to minimise the mess from measuring and scooping washing powder,” says Earthwise director Jamie Peters.n

DESIGNED to make dealing with food allergies easier, Love Cake has launched two new savoury baking mixes. The brand’s Savoury Muffin and Savoury Scone baking mixes

are free from gluten, dairy, soy and nuts, with egg free baking options available. The new lines join Love Cake’s extensive Organic and Natural cake mix offering. n

MOA’S NEW CRAFT LINES

TEMPURA BATTER IMPORTER Oriental Merchant has launched a premix tempura batter from its Obento brand. Available in a 500g re-sealable pouch, Obento’s new product comes on the back of exceptional growth of its Panko Bread Crumbs. With clear English instructions and only six bags to a carton, this great value tempura will be a hit with consumers and retailers with limited shelf space. n

MOA has added to its craft beer offering, releasing its latest limited edition Special Reserve brew from head brewer, David Nicholls. Called Moa Festive IPA, the new addition is an American style IPA with resinous and pinelike hop characters and is available in 500ml single bottles. The brewery has also launched an apple cider in 330ml 12 packs. The clean and refreshing French oak fermented and aged cider has a 4% ABV and will form part of the brand’s Classic range.n

PYTHON GETS THE CHOP AS part of Nestle’s confectionery commitment encouraging responsible treat consumption, Allen’s Killer Python is the first product to be downsized. While the new treat size killer python weighs in at 24g, compared with the original 47g, the product is being produced with the same recipe, maintaining its taste and stretch. In a bid to make appropriate portion choices more intuitive for its customers, Nestle will reduce the size of a number of its confectionery

GREGG’S NEW SHAKER JARS CEREBOS has redesigned its Gregg’s shaker jar range of herbs, spice and seasoning blends with the majority of its new packs rolling out from January. The new packs have been designed to reduce the fuss of cooking and allow experimentation in the kitchen with its easy to use double flip cap allowing consumers to either shake a little, or spoon a lot of their favourite herbs and spices with one easy flick of a lid. The jar now also conveniently allows a variety of teaspoons inside and in addition, features a much desired top label on the cap, allowing for quick navigation of herbs and spices that are stored in drawers. n

products, bringing energy content in line with recommended guidelines. Re-sealable packaging will encourage consumers to save larger products. Nestle’s group nutrition manager, Susan Kervork, says shrinking confectionery portions to a more appropriate single serve is one step in helping people control their nutritional intake. “Telling people to cut out all treat foods from their diet is unrealistic and unachievable long term,” she says. n

FREE RANGE TURKEYS

TEGEL has launched free range turkeys and a boneless turkey roast with cranberry stuffing, just in time for the festive season. Available in sizes four and six, the brand’s premium free range turkeys serve between 8-12 people and have been raised on one of two carefully selected free range farms in Canterbury. Tegel’s free range turkeys will carry the SPCA Blue Tick accreditation.

ARTISANS TEAM UP

PURE Delish has partnered with fellow artisan producer J.Friend and Co, updating its cereal, biscuit and snack bar offering to include the brand’s Beechwood Honeydew organic honey in its recipes. “We are sure that our customers will appreciate our move to using J.Friend and Co’s honey, I believe it shows our continuing commitment to only using the best quality ingredients in our products,” says Pure Delish owner, Karen Staples. J.Friend and Co approached Pure Delish and recommended the use of its organic honey which contains high antioxidant properties and boldness of flavour. n

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liquor TE AWANGA’S QUALITY WINES

ROD McDonald’s Te Awanga Estate is a special place. The area has some of the most unique growing characteristics in the region and a laid back salty charm. Pair this with the rolling views and diverse landscapes and it’s not hard to see why the Te Awanga Estate is a treasured jewel of the RM Wines portfolio. Te Awanga vines were planted 25 years ago in one of Hawkes Bay’s oldest winegrowing areas by a group of friends who dreamed of making the region’s greatest wines. Fast-forward to 2006 and this dream was kept alive by Rod McDonald who after winning New Zealand Winemaker of the Year, set out on his own with a few ideas about what Hawkes Bay wines could be like and where the great ones would come from. These ideas have delivered outstanding results for RM Wines across the past eight years and McDonald’s passion and expertise have set his prized Te Awanga Estate range apart in a cluttered wine market.

“We believe Te Awanga has one of the most definitive sub-regional characters in Hawkes Bay. Our vineyard by the coast truly captures something unique. We make a range of single estate wines that are rich, mouth filling and long-lived.” The vineyards of Te Awanga are characterised by shallow volcanicless soils that are ideal for wines of great flavour. Underlying this is a shallow impervious clay pan at about 35 centimetres. This pan, whilst a challenge for grape growing, limits the vine vigour and is a major factor in producing wines of concentration. The coastal climate with associated sea breezes and cooler night temperatures is vital in allowing slow ripening to intensify the flavours of both red and white wines. “Quality wine grapes have been grown at Te Awanga for a century. We are fortunate to have exceptional soil and the chance to play our part in making some of the great wines of Hawkes Bay and New Zealand,” says McDonald. n

SELAKS FOUNDERS RANGE CONSTELLATION Brands is relaunching a limited release range of Selaks Founders Wines this month as part of the brand’s 80th anniversary commemoration. Featuring five varietals – Hawkes Bay Chardonnay and Pinot Gris, Gimblett Gravels Merlot, Marlborough Sauvignon Blanc and Central Otago Pinot Noir – the Selaks Founders wines have previously only been produced in recognition of Mate Selak, the late nephew of Selaks founder, Marino Selak. Brett Fullerton, Selaks’ head winemaker, says the range is about showcasing the finest wines available. “The Founders range is our ‘halo tier’ and it builds on our winemaking credentials that stretch back more than three generations. Marino Selak – our founder – always saved his most treasured grapes to produce special wines for friends and family. We wanted to honour this tradition and the Selaks Founders is the result,” says Fullerton. Selaks Founders Wines are a combination of 2013 and 2014 vintages with each bottle individually numbered. There are roughly 500 cases of the white varietals, 450 of the Gimblett Gravels Merlot and 250 cases of the Central Otago Pinot Noir available. n

ROSE JOINS WHITECLIFF SACRED Hill has added to its Whitecliff wine offering, launching the brand’s first rose in time for summer. Featuring vibrant and approachable flavours in an easy drinking style, Whitecliff’s Rose has an aroma of ripe strawberries and complements the brand’s existing varietals.n

SUN DOG LAUNCHED

LION Nathan has released a new Kiwi cider brand in a 250ml can format. Sun Dog apple cider is made in New Zealand and is being offered to retailers in Feijoa & Mandarin and Strawberry & Lime options. The newly launched brand is 4.5% ABV per can and is being sold in convenient four packs. n

WHY MODERATION MATTERS (and makes good business sense) EAGLE-eyed readers might have noticed that in recent months DB has led a number of initiatives promoting responsible consumption of alcohol. This included sponsoring the Kiwi’s rugby league team with the industry’s responsible drinking brand (Cheers!) in their successful Four Nations campaign. This has raised awareness of Cheers! through the URL and brand appearing on the players’ jerseys, and was supplemented by video messaging at the games of captain Simon Mannering talking about the need to drink responsibly and make sure fans enjoy the whole 80 minutes. Related touchpoints included Cheers! Water Warriors’ handing out free water at the stadiums, messaging on the big screen as well as the installation of a mobile phone charging unit in the stadium bar that charges your phone if you interact with it about how much you drink. In addition, DB have launched another low alcohol beer as well

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as the first lower alcohol cider, to complement the market leading Amstel Light and last summer’s runaway success, Export Citrus. This low alcohol range has been jointly promoted in supermarkets up and down the country in an effort to drive awareness and demand for the range of low alcohol options now available. Finally, in the on-premise world, DB came out in support of the HPA’s ’not beersies’ water campaign and plumbed beer taps at willing customer’s bars with water. This raised a few eyebrows, but not from the publicans who were falling over themselves to help out. Say what now? Publicans wanting to replace beer taps with water? Breweries sponsoring a high profile national side with a moderation brand? Hell freezing over? Not at all. When you think more about it, moderation is simply good business if you take a long term view. DB will celebrate its 85th year next year and Tui is currently in its 125th. If we want to be in business for OWNED

another 125 years we need to think long term. Helping to shape a more responsible drinking culture in NZ is an inextricable part of this view. More people drinking in moderation makes for a profitable and sustainable future, just as bar patrons drinking more water when they are having a drink keeps them hydrated and comfortable in the bar for longer (and means less breakages and messy toilets to clean up..). We don’t invest in these initiatives because we want to be ‘seen doing it’, we do it because we want our actions to leave a lasting and positive impact on our community AND we think that has positive ramifications for our business. Take the development of more low alcohol options as an example. With the drink-drive limit coming down, our on-premise customers will suffer if they do not have products to sell to people wanting to have a few drinks and still be able to drive. If we give them tools to cater to that

clientele, that helps keep their business profitable which in turn helps to keep our business profitable. We want to be the tortoise, not the hare. Sponsorships are all about brand alignment for mutual gain – both parties benefitting from the association and an ability to leverage each other’s strong points. If our brands (or even industry) become progressively out of step with society there will be no value in our sponsorships and diminished value in our products. It behoves us to act responsibly and to encourage the responsible consumption of our products as, ultimately, that reflects on the present and future value of our business. n

Matt Wilson Corporate Relations Manager DB Breweries Ltd

productwatch NEW TO OUR RANGE!

productwatch

Each bag contains a seasonal medley of 100% Kaipara Kumara – Red Kumara (Owairaka), Gold Kumara (Toka Toka) and Orange Kumara (Beauregard).

To order contact your Alliance Marketing Representative phone (09)263 9466

productwatch

a100% natural sweet kumara goodness aGenuine Kaipara grown kumara aHand cooked in high quality rice bran oil aGluten, dairy and MSG free

Won’t trap food... Guaranteed!

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

• Easy to use tempura batter. • Obento, quality Japanese products at an affordable price. • 500g re-sealable, stand up pouch bag. • Only 6 bags per shelf display carton. • Ideal to display around fresh fish & seafood.

productwatch

• Innovative scrubbing surface that rinses clean of all food debris • Unique non-scratch scrubbing surface looks less abrasive than traditional scrub sponges • Long lasting and durable scrubbing surface

TEMPURA BATTER MIX

For more information on OBENTO products contact:

ORIENTAL MERCHANT (NZ) LTD Tel 0800 10 33 05 Fax 0800 10 33 11 Email: nzenquiries@oriental.com.au Website: www.oriental.com.au

Scotch-Brite is a trademark of 3M

Dec/Jan 2015

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annual conference SOME OF THE TRADE DELEGATES AT LAST MONTH’S QUEENSTOWN CONFERENCE

lastword

Peter Mitchell

IT’S been an eventful year in our grocery industry, especially with all the new openings, the Countdown affair, incredible personnel changes including the upcoming Murray Jordan withdrawal, the disruptive Foodstuffs SAP programme, increasing obesity legislative threats, labelling issues and decreasing margins all round. What 2015 will bring is hopefully a little peace and quiet and simply a chance to get on with regular business on both sides of the industry – after all, we deserve a break. THERE I was at the Food & Grocery Council conference golf day sponsored by Nielsens, sitting quietly in the men’s locker room, when a prominent industry executive started pulling on pantyhose. I asked him when he started wearing pantyhose and he said:

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“Since my wife found them in the glove compartment of my car..” WITH 2014 now almost behind us, it has been a strong year for SupermarketNews with this issue marking the 42nd year we have been publishing grocery magazines in New Zealand. Of course our company Review Publishing began life in 1923 when the Barkers launched it out of Foodstuffs and the then Grocers Association and we are proudly only the second owners in its 91 year history. We’re still proudly family and wholly New Zealand-owned and plan on keeping it that way (and in the family) for many years to come. After all that time, we’re still passionate about supporting all suppliers and all retailers. WE have to report that a brief article in London’s Daily Mirror confirmed that a London hospital was being sued by a Mrs Maynard saying that after her husband had

surgery there, he lost all interest in sex. In a statement, a hospital spokesman said: “We don’t understand this claim. Mr Maynard was admitted for cataract surgery and all we did was correct his eyesight…” IT’S that time of year when a lot of staff are invited to functions and have a little difficulty in staying awake at work the next morning. We heard of one smart reply from an industry staffer who got caught snoring off. On being woken, he raised his head slowly off the keyboard and said ” … in Jesus’ name, Amen.” IT’S also Christmas time and I’ve been told to keep it short – and to be nice to everyone. And while I try hard to be nice most of the time, it sometimes doesn’t work out that way (As you can guess, my wife wrote this paragraph). But have a great Christmas anyway and I’ll catch you in 2015.