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Dec/Jan 2017 • Vol. 10 No. 1
To all those who make our progress possible, we extend our best wishes for a Merry Christmas and a happy and prosperous 2017!
Choose only MSC certified tuna. ‘the world's best standard in sustainability’
editorialcomment IT DOESN’T GET EASIER … Certainly it is not appreciated by the great spread of the population and its leaders that this industry, because of its competitive nature, is providing groceries that are better value for their dollar than 20 or 30 years ago. It has been a consistent story of innovation, low pricing, wonderful stores even by world standards, category and product development, and we continue to achieve new heights. There are plenty of people out there, often trying to make a reputation for themselves, who are critical of our grocery industry and often they simply don’t see what is being done behind the scenes to meet the new healthy world criteria and
the commitment this industry has to actually do its best to contribute. Perhaps next year! In the meantime, SupermarketNews appreciates your support at this as we move into 2017 – Review Publishing’s 96th year of business and still proudly family-owned and operated.
DECEMBER 5-7: SIAL Middle East, Abu Dhabi
MAY 31 2017: ConTech2017, Melbourne
JAN 29 – FEB 1 2017: ISM Cologne, Germany
SEPTEMBER 2 2017: Grocery Charity Ball, Auckland
OCTOBER 7-11 2017: ANUGA, Cologne, Germany
Peter Mitchell Publisher
2016 – that was another year when the food and beverage industry faced the slings and arrows that go with us being a critical supplier to every man, woman and child in the country. In a world of political upheaval, economic turbulence, raging wars and the fickle nature of the consumer and their advocates, life’s just not that easy in this industry. Political, academics, health and even newspaper and magazine journalists find us an easy target because we generally don’t fight back while they get the headlines – some ludicrous and clearly wrong.
THE NEW ZEALAND BEVERAGE COUNCIL (NZBC) P.O. Box 47, AUCKLAND 1140, New Zealand. Email: info@nzbc.nz Phone: +64 9 309 6100 DDI: +64 9 302 9932
diarynotes APRIL 4-6 2017: ProFood Tech, Chicago, USA MAY 8-11 2017: ProWine Asia, Hong Kong
SEPTEMBER 11-15 2017: PRO FachHANDEL & drinktec, Munich, Germany
MAY 17-19 2017: SIAL China, Shanghai
NOVEMBER 22-25 2017: SIAL Interfood, Jakarta, Indonesia APRIL 24-27 2018: FHA2018, Singapore OCTOBER 21-25 2018: SIAL Paris, France
contents
04 News 10 Beverage Council 12 Beverage News 14 What’s New 15 Last Word
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10 11 12 SupermarketNews is published under license. Please direct all enquiries and correspondence to SupermarketNews. The opinions and material published in this edition of SupermarketNews are not necessarily those of the publishers unless specifically stated. All material in this publication is copyright and may only be reproduced with the consent of the publisher. Copyright 2016
PUBLISHER Peter Mitchell, peter@reviewmags.com
ASSOCIATE EDITOR Rossella Quaranta, rossella@reviewmags.com
MANAGING DIRECTOR Tania Walters, tania@reviewmags.com
ADVERTISING SALES Felicity-Anne Flack, felicity@reviewmags.com
EDITORIAL DIRECTOR Sarah Mitchell, sarah@reviewmags.com
SENIOR DESIGNER Raymund Sarmiento, raymund@reviewmags.com
The NEW ZEALAND BEVERAGE COUNCIL is an industry association whose members cover all aspects of the non-alcoholic beverage market both in New Zealand and the export markets. The Council members are spread throughout New Zealand and come together annually for an industry conference that covers industry issues and is addressed by international speakers. The organisation monitors product quality and sets standards for the industry and runs national competitions and awards.
ATTENTION GROCERY SUPPLIERS The Food and Grocery Council is an industry association for grocery suppliers providing members networking, events, industry information and strong advocacy. Contact us for information on the benefits of membership: Katherine.rich@fgc.org.nz • Networking • Industry Updates • Conference and Events • Education and Training • Advocacy and Law Reform
Design Assistant: Hannah Sames CIRCULATION & DISTRIBUTION MANAGER Kieran Mitchell, kieran@reviewmags.com
ISSN NO. 1173-3365
Suite 9, Level 3, 20 Augustus Tce, Parnell, Auckland, PO Box 37140 Parnell, Auckland. Tel (09) 3040142 Fax (09) 3772794
www.fgc.org.nz
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The heart of Kiwi tables is about to get a whole new look
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For more information on Ingham’s range of products go to www.inghams.co.nz or contact our sales department on 0508 800 785
news
SPREAD THE NEWS
FARRO TO OPEN FIFTH STORE
Cadbury has no plans to bring its Caramel chocolate and Crunchie spreads to New Zealand, but this doesn’t mean that Kiwis won’t have them. Auckland-based confectionery shop United Sweets has ordered 1,000 jars, which will be delivered in December. The move was announced by the company earlier this year through a Facebook post that has since gone viral, with more than 100 pre-orders placed in the first hour. James Kane, NZ country head of Mondelez (which owns Cadbury), said that it had been great to see so many New Zealanders getting excited in response to United Sweets’ post. “Clearly there are plenty of people out there who are keen to try a spread that offers them the same flavour as their favourite Cadbury treat.” n
Farro’s much-anticipated new store is due to open in February at the Orakei basin development. It will be the chain’s fifth Auckland location, after Mount Wellington, Grey Lynn, Epsom and North Shore. “A new-look store that still offers the same unique shopping experience that our customers have come to love, in a wonderful new area, means we have a whole new community of food lovers to meet and share our passion with,” said Michal Haines, general manager, Farro Fresh Food Ltd. The footprint size, she added, is around the same as Farro’s existing Grey Lynn store, with ample onsite carpark. “We will be employing approximately 60 people for the Orakei store, which will bring our Farro family up to over 450,” Haines said. “Some of our current team members are taking on the exciting new job of moving stores to help head up teams as well, so we see that as a really exciting new step in their careers.” n
FROZEN IN HISTORY Tip Top ice cream has turned 80 and, to celebrate this milestone, has released a new cake and raspberry flavour with real cake pieces and sprinkles. The company, which currently produces 23,000 metric tonnes of ice cream annually, hasn’t changed much since its inception. “The same great things that make Tip Top great today were in place back then, with fresh milk and cream, and lovely, fresh berries from Nelson,” said managing director Kim Ballinger. n
STRATEGIC NEW OWNERS After 25 years manufacturing pavlovas, meringues and lamington products, family-owned company Elite Food Group has been sold to Melba’s NZ, with the transaction being scheduled for completion on 13 January 2017. “Our decision to sell our business was not made lightly, but we are confident it is the right one,” said Paul and Anthony Fisher, current Elite’s director and general manager respectively. Elite Food Group will operate under the direct management of Anthony Fisher, who will also be taking on the role of general manager of NZ for both Elite Food Group and Melba Foods. Both businesses will operate as divisions of Melba’s (NZ) Pty Ltd. n
A NEW ‘LEADER’ IN AUSTRALASIA Renowned Australian company Patties Foods Limited has acquired NZ-based frozen convenience food manufacturer Leader Products. Established in 1998 by Tony Peterson and Richard Crabb, Leader has been growing steadily ever since, catering to both grocery retailers and foodservice with its range of meatballs, toppas, finger foods and burger patties. Peterson will retain his role as managing director. “Like Leader, Patties is a family-founded local business with a culture of innovation and operational excellence,” he said. Patties’ CEO Paul Hitchcock emphasised the two companies were natural partners, and both will benefit from this transaction in terms of performance. “This deal will create a market-leading food business across Australia and New Zealand,” he said. “We see immediate opportunities to leverage the Patties sales force in Australia to bring more of Leader’s great products to Australian customers.” The transaction is expected to complete in early 2017. n
RESPONSIBLE RETAILING Countdown has announced the roll-out of new 100 percent recyclable meat trays, starting with the North Island, and the launch of a $100,000 contestable fund for food rescue charities that are looking to build and grow their capacity to collect and redistribute food. The announcement followed the release of Countdown's second Corporate Responsibility Report, which detailed its progress on community and environmental commitments over the year to 26 June 2016. (More information on supermarketnews.co.nz) n
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QUALITY SERVICE AWARDED Leading market expansion services provider DKSH has won the Distribution and Logistics Award at the 2016 Westpac Manawatu Business Awards. Several factors contributed to this result. The company scored very highly across all factors that were taken into account, namely vision, leadership and governance, planning and strategy, business/financial performance, marketing and customer focus, quality and systems, people management, health and safety, financial soundness and profitability of the business. “It was an honour and privilege for me to be
able to accept this award on behalf of DKSH New Zealand Limited,” said managing director Russell Wilson. “The team here richly deserved the recognition on delivering a quality service for our clients and customers.” Established in 1958, DKSH represents renowned NZ brands in Asia such as Whittaker’s in Malaysia, as well as international companies that want to grow their business in New Zealand, such as Lindt, Chupa Chups, Ferrero and Red Bull, just to mention a few. DKSH’s integrated services include sourcing, marketing, sales, distribution, logistics, quality assurance and after-sales services. n
NEW CHIEF FINANCIAL OFFICER Starting mid-January 2017, Joanna Allan will be Foodstuffs North Island’s new chief financial officer. With a background in engineering and 20 years’ experience in FMCG JOANNA ALLAN finance, Allan will be instrumental to the business’ future direction. “Jo’s role as CFO will see her develop and deliver a financial and strategic plan to maintain and grow the business at a very exciting time,” said Chris Quin, CEO, Foodstuffs North Island.
As the shape of retail is changing rapidly, Quin added, smart financial planning will enable the company to be entrepreneurial, innovative and competitive. Allan’s career has led her to hold senior finance, strategy, leadership and transformation roles for several leading companies such as Danone, Frucor, Fonterra, Lion and Tegel. “I’ve worked very closely with many of the household names on our supermarket shelves and understand just how important it is to ensure New Zealanders continue to enjoy the best value products in the best shopping environments,” said Allan. n
The Best of Marlborough in Every Bottle Trophy Best Sauvignon Blanc Royal Hobart International Wine Show 2015
Pure Elite Gold Medal Air New Zealand Wine Awards 2015
Gold Medal Japan Wine Challenge 2016
Gold Medal China Wine & Spirits Awards 2016
Gold Medal Concours Mondial du Sauvignon Belgium 2016
Gold Medal Royal Hobart International Wine Show 2015
WWW.SAINTCLAIR.CO.NZ facebook.com/saintclairfamilyestate twitter.com/saintclairwine 100% FAMILY OWNED 100% NEW ZEALAND WINE 100% SUSTAINABLE
news
FUTURE OF BEAUTY PACKAGING
One of UK’s leading consultancy business, Smithers Pira, has recently published a new market study that identifies the forces shaping beauty packaging design over the next ten years. Among those factors, the company mentioned convenience and ease of opening.
GROCERY BALL SUPPORTS DIABETES NZ
A poor opening experience, or ‘wrap rage’, can truly undermine any other investment in advertising and graphics. Environmental sustainability is also another crucial topic, especially when it comes to single-use products. Over the next decade, manufacturers will need to maintain a strong focus on lighter formats or materials. Additionally, as men are increasingly interested in products that have historically been considered ‘feminine’, like haircare and facial skincare, pack designers will need to present them in a masculine way. Lastly, innovations like invisible inks, special varnishes, embedded fibres, tamper-evident fixtures and holographic foils may make a difference in the battle to reduce counterfeit goods. Despite rising online sales, the demand for premium materials, designs and tactile effects won’t die. n
NAPIER STORE GOT BIGGER
After four years in the making, a new and improved Pak’nSave store has just opened its doors in Napier, offering 50 percent more retail space than its predecessor. Pak’nSave Tamatea employs 160 staff and supports the local community by sponsoring schools, charities and around 75 junior sports teams. “For our team it’s the culmination of almost four years of planning and development,” said owner-operator Andrew Graney, who started working at the original store in 2004. “Many of them have been involved in the planning and design right from the outset, so it’s a real team effort and I’m extremely proud of what we’ve achieved so far.” The store features energy-efficient lighting and refrigeration technology, and includes a dedicated seafood department, self-service checkouts and the popular SHOP’nGO service, which allows customers to scan products as they shop and simply pay at the end. n
The Grocery Charity Ball will be back in 2017, on 2 September, with approximately 650 guests being expected for an event filled with entertainment, food, wine and networking. Last year the ball was a huge success and raised $200,000 for Coastguard Auckland, and Diabetes New Zealand has just been named as the 2017 beneficiary. The nationwide organisation supports people affected by diabetes by providing information and raising awareness, especially around lifestyle factors that can help prevent it. n
OWNER-OPERATORS ANDREW GRANEY, MEL DAVIS, JACK, ALEX AND BEN
NEVER A DULL MOMENT
What another full-on year 2016 was in the grocery industry. That’s why I love it – there’s never a dull moment. Even when it’s quiet, you know there’s another issue not far away. If I was to put a label on it, I guess it would have stars around the edges and contain three words: obesity, reformulation, jobs. The year started with anticipation of the Government’s launch of initiatives to tackle childhood obesity that had been announced the previous October. It had been welcomed by most as a pragmatic approach to a complex problem, and recognised that families, individuals, industry, government, and public health officials must all do their bit to help solve that growing and concerning issue. At the core of the plan, which came into effect in July, is the new Raising Healthy Kids health target, whose aim is to have 95 per cent of children identified as obese referred to a health professional for family-based nutrition, activity and lifestyle interventions. One component was the Advertising Standards Authority’s review of the Children’s Codes that was released in October. It contained a restriction on advertising occasional food and beverage products to children, and a special care for people aged 14 to 18 years, previously included in the Adult Code.
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The food and beverage industry has long been a staunch supporter of voluntary restrictions on advertising to children, and we wholeheartedly supported this. The plan signalled the Government’s intention to work closely with industry on obesity, and we were delighted to be part of it, continuing our work of recent years on reformulating products, offering smaller portions, and supporting education and physical activity programmes in schools and communities. It was great to see Foodstuffs, Progressive Enterprises, Moore Wilson, Bin Inn and Retail NZ pledging to work on initiatives under the plan. Part of that was further support for the Health Star Rating scheme. Before the supermarkets signed up, industry had more than 1000 products with the star labels, but that is set to expand as Countdown and Foodstuffs have promised to move all their home brand products to the scheme within two years. As part of the war on obesity, FGC launched seven videos by dietitian and Registered Nutritionist Nikki Hart on food and health topics, and then our OWNED
own Facebook page and special website on healthy eating and living – www. healthybalance.co.nz – to provide information to consumers. In July we watched with interest the launch of Australia Food and Grocery Code of Conduct, which was signed up to by the main retailers – Woolworths, Coles and Aldi. It contains a new set of principles and rules overseeing supplier/retailer relationships, such as good faith bargaining, fairness, and transparent negotiations. It applies to New Zealand companies selling goods in Australia, and could well end up being a blueprint for our own Code, should that come to pass. On sugar, FGC produced irrefutable evidence that Mexico’s 10 percent tax on sugar-sweetened beverages has been a whopping failure. Sales data collected by research company Nielsen showed that two years after the tax was introduced, sales of sugar-sweetened beverages had dropped by 0.5 percent – not even one sip per person – which is why we continue to stand firm and say it will not work here. We also highlighted the great jobs available across the FMCG industry, from suppliers, manufacturers,
On sugar, FGC produced irrefutable evidence that Mexico’s 10 percent tax on sugar-sweetened beverages has been a whopping failure. distributors, and supermarkets. Our Jobs Expo at Auckland University was a huge success and opened a lot of eyes, not only of those who come through university with a degree but also those who start by wrangling trolleys in supermarket car parks. As I said, never a dull moment and I don’t expect 2017 to be anything different. n
Katherine Rich
Chief Executive NZ Food & Grocery Council
NEW WORLD KAIKOURA
SHAKY END OF THE YEAR Like many other businesses in the South Island and lower part of the North Island, some supermarkets suffered earthquake damage in November. New World Kaikoura was among the most severely affected. Despite challenging conditions, though, staff have done everything they could to get the store back on its feet, and the supermarket reopened in just a few days. “The team are like family to us, and when things calm down, we’ll definitely be having a BBQ and a few beers to say thank you,” said owners Glen Steele and Melissa Sprott. Over the first week, Foodstuffs has sent extra staff and supplies to Kaikoura, including water, disinfectant, nappies, canned goods and pantry-stable fresh food. Since the emergency started, the company has ensured there were no shortages of bottled water
within its network, including Wellington’s New Worlds and Pak’nSaves, by sending 20 additional truckloads to its Palmerston North distribution centre. After the damage assessment had been performed, Progressive teamed up with the Red Cross to launch an Earthquake Appeal into all Countdown, SuperValue and FreshChoice stores. “Our teams and customers are from the regions affected, and we want to help our communities get the support they need so that they can start to tidy-up and try to get back on their feet as soon as possible,” said managing director Dave Chambers. It’s the Kiwi way, many would tell. “As always, we need to unite as we try to operate our businesses,” said FGC chairwoman Veronique Cremades in a statement, urging New Zealanders not to give up in the face of adversity. “FGC has been in contact with retailers and they have worked and will continue to work hard to deal with many issues in order to ensure supply.” A number of companies have lent a helping hand. Kono NZ’s subsidiary Annies, for example, has donated a pallet of 1,512 boxes of Annies Apples Rings to the people of North Canterbury. Their Blenheim-based factory was affected by the quakes and had to remain closed for two days. “Now that we’re up and running again, we’re delighted to be able to help the people of Canterbury, and our thoughts are with them at this unsettling time,” said Mel Chambers, GM Foods, Kono NZ. n
WARNINGS AND INSPIRATION Around 320 FGC delegates have recently gathered in Surfers Paradise, Australia, for the annual Food & Grocery Council Conference. Focused on ‘The New Reality for Grocery Suppliers in New Zealand and Australia’, the event offered an impressive line-up of speakers, networking opportunities and breakout workshops. Among the key speakers was Terry O’Brien, CEO of Simplot, who warned New Zealand about the
arrival of ‘discounters’ such as Aldi into our market. “You seem to be really good at staying clean and green and keeping all sorts of agriculture threats off your shores, but I don’t think you’ll keep the discounters off your shores, so get ready and be prepared for when they get there,” he said. “In New Zealand, if you aren’t yet suffering enough from discounting, you will one day, so start looking at your cost structure.” n
FARMERS ARE TAKING CONTROL The relationship between Australian farmers and supermarkets is far from idyllic. Following a successful debut in Victoria, online-only supermarket The General Store has just started operating in New South Wales with an initial offering of 4,000 grocery brands, mainly Australian-grown and Australian-made. Developed by the team behind Aussie Farmers Direct, the store promises low prices and specials. “In The General Store, we will look wherever possible to support Australian food and grocery manufacturers, and we’ll also donate 10 percent of the profits from imported products to the Aussie Farmers Foundation, which supports charities and grassroots community groups making a real difference in rural Australia,” said Keith Louie, CEO of Aussie Farmers Direct. Another online initiative, Aussie Food To You, aims to create a digital farmers’ market platform to bypass supermarkets. Currently under crowdfunding on readfundgo.com, the paddock-to-plate app would cut out the ‘middleman’, allowing farmers to sell their products directly to consumers and retain as much of the profit as possible. According to project creator Peter Askew, due to a ‘very antiquate supply chain’, rural communities are no longer benefitting from their hard work and the world-class produce they grow. The app is initially focused on the premium meat market, but Askew plans to expand into other farming produce and key markets such as China, Japan and South Korea. This clearly presupposes that the project meets its ambitious $150,000 crowdfunding goal by 23 December 2016. n
Loscam New Zealand Limited would like to say a big thank you to all our customers who supported our Pink Pallet fundraiser for Breast Cancer Awareness throughout October, all proceeds direct to the New Zealand Breast Cancer Foundation.
Thank you all for taking part in this great initiative!
Scan this QR Code to find out more about the LOSCAM pallets.
www.loscam.com shaun.sievwright@loscam.com
December/January 2017
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IAN QUET BANQUET PLATTER tasty vegetarian spring rolls, samosas & savoury dim sums
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NEW BEVERAGE PLAYERS NOT WELL RESOURCED
The beverage industry has gone through a growth spurt in recent times with the launch of a number of smaller players, but many of them are not well resourced in terms of labelling, claim justification and general marketing.
LYN MAYES
These comments came up at the recent annual conference of the NZ Beverage Council where many of the new players were said to be not taking advantage of the facilities and advice available through this industry body. Several speakers made the point that outlandish claims had become common, especially in the area of coconut water, and many of these were being referred by the industry either directly to the supplier or to MPI. The conference was attended by over 80 delegates from most major
suppliers and they heard a raft of local and overseas speakers tackle a wide variety of beverage topics. Among the key speakers were Ben Cain of patent attorneys James and Wells, Brendon Hoare from Organics Aotearoa, Lyn Mayes of the Packaging Forum speaking on the container deposit legislation possibility, Adrian Toft of Interconnect on the subject of bottled water, Dr Cristiaan de Groot of Unitec on packaging innovation and a keynote address by international science expert Dr Bill Shrapnel. Ben James spoke of IP considerations that had to take first place with new products. He discussed how to acquire and manage trademarks, copyright and registered designs. Brendon Hoare said the use of the word ‘organics’ was causing concern to the industry as the young newcomers may be innovative, but they needed to seek clarity. He said lots of people ‘told fibs’ and there was now a need
. . . even though organic had become mainstream and fastgrowing, most consumers still could not name an organic brand.
CRISTIAAN DE GROOT
for a national standard. He said even though organic had become mainstream and fast-growing, most consumers still could not name an organic brand. Lyn Mayes said there was much noise about a container deposit, but it tended to solve a problem that New Zealand did not have.
Already close to 70 percent of beverage containers were being recycled and it had been shown that drink containers were only around 11 percent of all litter. She said the deposit idea was locally politically motivated as many consumers liked the idea of 10 cents going back to funding local charities. n
CONVENIENCE CHANNEL FACES CHALLENGES AHEAD The petrol and convenience channel is in good heart but faces a number of challenges ahead as it develops fresh market penetration and store developments. That was the concensus of opinion at last month’s Convenience Leaders Summit staged in Auckland by the Association of Convenience Stores (NZACS). PETER STRUCK
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Struck led the day with the comment that convenience in Australia was growing at over 7 percent but that non-food, particularly tobacco, was slipping back. He said food-to-go was the new strength showing sales increases of around 15 percent a year, with sandwiches leading the way with a 22 percent rise. Produce had become a strong contender in this channel, but it provided logistical challenges to build fresh. Hot drinks were significantly up and coffee was now one of the top SKUs with discount pricing driving this category. And despite an overall category decline, soft drinks were still a profitable sector. He said the industry found water was popular, but that it was difficult to compete with bulk sales by the likes of Coles Express selling 24-packs for around $7. Other products doing well included a huge lift in popcorn and nuts and a small upward movement in confectionery, but the best strength was in small snack offering where there was a lot of fresh NPD. He said the likes of Aldi had taught Australians to love housebrands
especially where the old budget words have gone and there has been strong rebranding. Struck said the biggest challenge to the channel were the small metro stores of the big chains which were dealing in breakfast, lunch and dinner opportunities. He said it was interesting that no-one was buying groceries in convenience markets, but there was heavy emphasis on fresh and foodservice. Pricing was a major key with an emphasis on EDLP, the offer of quality products on lock-down pricing and take-home solutions. Among the other key speakers on the day were Wade Death, founder and director of Jack & Co. Food Stores, probably the first unique food-focused convenience offer in Australia, Time Warwick, Customer Development Director of Asia Pacific for Coca-Cola Amatil, Patrick Ganguly, Australian Market Manager of Imperial Tobacco and Mike O’Brien, New Zealand Country Manager of CHEP. n
20 YEARS IN BROKERAGE In these days of often less personal business, it is always remarkable that long service by a family operation continues to succeed. Another one of these to reach a milestone is the Trilford family with its sophisticated brokerage business model known around the industry as Rothfords.
“Congratulations to the Rothfords team for their 20 year anniversary, Rothfords International represents us in parts of NZ and plays a key part in growing our brands and reporting information.” —Antony Porter, New Zealand King Salmon.
TONY AND MAREE TRILFORD
Tony and Maree Trilford have come a long way in their 20 years – from a small back office in Wellington to a thriving sales agency and merchandising operation with a staff of over 70 around the country. The company is best known for its work in the chilled and frozen area with a predominant emphasis on short shelf life products. As they “Rothfords have utilised Opmetrix software for their field team since 2010. It’s a great working relationship. Rothfords have helped us with valuable industry feedback. This has improved our product for sales agencies as continuous innovation is key for our success.” —Oliver Huggins, Opmetrix Limited
describe their role – specialists in the supermarket’s outer rim. Today the company has its main support office in Masterton that encompasses administration and telesales and a main sales office in Takapuna. And while they work closely with head office buyers, the company has built a considerable reputation for working with a range of stores where direct sales can be made. The Trilfords themselves with Tony as the CEO and Maree handling systems, finance & IT and managing the merchandising structure in her role as Operations Manager, are supported by respected FMCG personalities Bryan Winter as North Island Manager and Andrew Hall as South Island Manager. A well known face in the industry, Simon Rangihaeata is about to move to another business after five years as the general manager; he has been a huge influence in the growth and success of Rothfords over the past five years and will be sadly missed. The business started when Tony saw an opportunity after some years with Tui Foods and their renowned Tararua Brands. Rothfords started by developing the Angel Bay brand for Anzco Foods,
worked out of their Wellington office and built the sales of Angel Bay over a number of years. Rothfords now has partnerships with a range of leading brands including Venerdi Gluten Free, Pitango Soups, Giannis, NZ King Salmon, Westie Food Group, I Love Pies and Abe’s Bagels amongst others. What started out as a sales and marketing business has also developed into a substantial standalone merchandising operation spread throughout the country. The company also has a strong telesales team that has been winning complements from many small store owners across the nation who lack real contact and support from “Rothfords are a passionate and hard-working sales team, their ongoing commitment to the ABE’S brand has led to continuous growth ahead of the bakery smallgoods subsegment. Well done to Tony and the team.” — Sam Stone, ABE’S Bagels
the bigger players. The nature of the products being handled means a high call frequency to stores and while not the biggest of the country’s brokers, the great partnerships with clients allows the company to focus on its goal to be recognised as not the biggest, just the best. The company has fantastic staff and Tony and Maree state that one of their biggest rewards is being surrounded by such a great group people who are so passionate about what they do and the relationships they have built throughout the industry.
ROTHFORDS TEAM
Of importance to the company and its customers has been recent restructuring that has included the Opmetrix market support and sales programme. This gives real time information to both the head office, staff in the field and its clients and has been a major factor in the growth and success enjoyed. While Tony spends much of his time around the country, he and the family still find time to do a bit of snow skiing, entertaining at home and farming a small lifestyle block in the Wairarapa. The couple have four children – two sons and two daughters – and say they owe a lot to mentors and business partners Darcy and Heather Quinn, who have helped the Trilfords meet the challenge of this changing industry and back them in creating their HEART values (Honesty, Energy, Accountability, Reliability and Tenacity). n “Five years and still married – seems like we are joined at the hip. Rothfords have a great core of people and surviving 20 years in the brokerage business isn’t easy. Anyway, they have done a great job for us.”
— Stefan Crooks, Westies Food Group
Happy 20th Birthday to t h e b u s i n e s s w i t h h e a rt
Honesty Energy Accountability
Reliability
Tenacity
visit www.foodbrokers.co.nz or call 0800 949 333 Rothfords half page.indd 1
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beveragenews LAWRY TAKES THE HELM On 1 January 2017, Brendon Lawry will take the helm at Foodstuffs-owned Liquorland as its newly appointed CEO, following Rob Chemaly’s retirement. Since March 2014, Lawry has been working as a merchandise manager at Foodstuffs North Island, driving enhanced relationships with key suppliers. He has also been instrumental in driving the success of the Wholesale Merchandise team, the New World Wine Awards and the growth of liquor in FSNI stores—an
experience that will come in handy in his new role. “There’s no doubt it’s an interesting time in retail,” said Lawry, while pointing out that his priority is the customer, who in Liquorland’s case are both shoppers and franchisees. “One of our points of difference rests on being a specialist where people come to us specifically for our expertise. This relies on us helping owners and their staff up-skill on variants, the story, what goes with what and getting under the customers’ skin to ascertain what they need – which is not always the same as what they want. Get this right, show that you care and you get the sale, repeatedly.” n
UNDER PRESSURE
Swedish sales of NZ-made beer Aro Noir, by Wellington-based brewery Garage Project, ended on the same day the product was launched in the Nordic country, because some cans exploded. Garage Project looked into the issue and confirmed that it was limited to two over-carbonated batches of Aro Noir, accounting for only 0.6 percent of the can stock sold this year, “with no evidence of problems in any other beers.” The beer was safe to drink, but over-carbonation caused the seam to fail, resulting in beer spraying from the can. The company has therefore launched a voluntary product withdrawal across NZ and Australia, and the MPI case has been closed. n
WINE PRODUCERS OF THE YEAR Matua and Church Road Winery have recently scored top awards. The former won the trophy for New Zealand Wine Producer of the Year at the prestigious International Wine and Spirit Competition (IWSC) in London. Matua entered 12 wines and received 12 medals; one Gold Outstanding for the 2013 Matua Single Vineyard Pinot Noir, five Silver Outstanding medals, four silvers and a bronze. “More than ever New Zealand is producing wines that stand up on the global stage and to be acknowledged as the IWSC New Zealand Producer of the Year is testament not only to the quality of Matua wines, but also the breadth of our portfolio and the consistently high standards we are achieving,” said Greg Rowdon, Matua chief winemaker. Meanwhile, Australian magazine Winestate has named Church Road
LIFETIME ACHIEVER Founder of Yealands Wine Group, Peter Yealands received a Lifetime Achievement Award at this year’s Drinks Business Green Awards, for his innovation and commitment to sustainable practices. Yealands’ solar array was also a runnerup in the Renewable Energy Implementation category. He is the first New Zealander to have won this coveted award since its establishment in 2010. Some of Yealands’ innovations include recyclable PET (plastic) bottles, burning of baled vine prunings for energy, special composting from grape marc and playing classical
PETER YEALANDS
music to the vines. “He has truly excelled throughout his career implementing many wonderful sustainable initiatives and furthering environmental and sustainable practices in the wine industry,” said Patrick Schmitt NW, editor-in-chief, The Drink Business. n
MY YEAR IN REVIEW
(and what to expect next)
It’s been almost a year since I returned to our New Zealand business and, as I look back over 2016, it’s how quickly our team and suppliers rallied together during the recent earthquakes that reminds me of why I love working at Countdown and the wider Progressive Enterprise group. Dave Chambers
Managing Director Countdown
Our first priority was to ensure that our team were safe. A lot of our stores and the Palmerston North distribution centre were impacted by the earthquakes. I am extremely proud at how fast the whole business was able to get back on its feet and open our doors so customers could get their essentials during a very worrying time. Our teams also quickly donated tens of thousands of dollars worth of damaged food to charities, and we set up a
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donation drive in stores for the Red Cross Appeal which we kick-started with $25,000. I would like to personally thank all our team, and our suppliers, particularly those whose homes were damaged or families impacted, but who still did their bit to help us open as soon as we could with food on the shelves and trucks on the road. It has been another extremely busy year of trading. We have continued to focus on making groceries more affordable in a competitive market. There are now more than 3,000 products in the Price Down programme. We have also invested in our infrastructure and increased our hours of service. Since the beginning of this year we’ve opened six new stores. We’re also OWNED
ramping up refurbishments; the upgrade of Countdown Mt Eden is another example of our ongoing work to tailor offers specific to our customer base, and welcome new, smaller suppliers to a more targeted audience. We published Countdown’s second Corporate Responsibility Report at the end of November, highlighting our progress on commitments to invest in our community and reduce the environmental impact of our business. We took some great steps this year, from contributing nearly $6.5 million in cash, food and in kind donations to charity partners and our local communities, to establishing a contestable fund of up to $100,000 to support Countdown’s food rescue charity partners, and being awarded a Green Ribbon Award for
Winery’s winemaker Chris Scott as New Zealand Winemaker of the Year 2016 for the second time in four years. “This award is very much a reflection of our collective skills, passion, knowledge and experience, and I very happily accept this on behalf of them all,” Scott said. n
ALCOHOL RULES APPEALED Supermarket chains are appealing the Dunedin City Council’s plans to restrict alcohol sales in the city. According to the new rules, signed by councillors in June last year, supermarkets would have their alcohol hours cut from 7am-11pm to 9am-9pm. Organisations currently appealing include Foodstuffs South Island, Progressive Enterprises, New Zealand Police, Dunedin Hospitality Group and Independent Liquor, among others. Progressive’s counsels said off-licence hours had already been reduced ‘considerably’ throughout New Zealand, and pointed out that the policy needed to be evidence-based, rather than emotion-based. n
Resilience to Climate Change as a result of Countdown’s ongoing work to reduce emissions. We announced a significant waste reduction initiative to start rolling out new recyclable meat and seafood trays, launching in the North Island with fresh chicken. Over the coming months all polystyrene black foam meat and seafood trays will be replaced with the new clear recyclable plastic trays. This aims to remove more than 500 tonnes of polystyrene from landfill annually. As we look to the New Year, our focus for 2017 is staying true to our purpose to make Kiwis’ lives a little better every day. We will be concentrating on executing the basics well; that we continue our focus to offer customers low prices, that we work efficiently, that we have the right products in the right store, and that we work together with our team and our suppliers to offer customers an excellent experience, every time. We’ll also continue our focus on making it easy for suppliers both big and small to work with us, and expanding on our direct farmer relationships. I would like to take this opportunity to wish everyone a very safe and happy holiday season and I look forward to working with you all in the New Year. n
globalnews
MARKET FEEL
In Australia, Countdown’s owner Woolworths has unveiled one of its next-gen stores, featuring bigger produce sections and an increased health range. Opened in Sydney’s Warringah Mall, the supermarket boasts 26 bays solely dedicated to healthy-eating options and an improved selection of new on-trend health foods. Further features include an expanded sushi section, a dedicated butcher, an in-store bakery with a cake shop, and a cheese room with 100 locallysourced Australian cheeses and a full-time cheese expert. The spotlight will be on local suppliers, much like we’ve seen in New Zealand with the opening of Countdown Ponsonby. This financial year, Woolworths plans to open at least 80 stores in the new style, of which 20 new and 60 refurbished. n
THE DEATH OF GLOBALISATION According to the latest CIPS Risk Index, conducted by Dun & Bradstreet economists, the international community is moving away from its commitment to globalisation. The risk relating to global supply chains has reached its highest levels since 2013 due to uncertainty around the post-Brexit relationship between the UK and the European Union, the results of the US
ARE SUPERMARKETS DOOMED?
According to Richard ‘Dick’ Smith, founder of the namesake troubled retail chain, supermarkets have their days numbered and will ‘disappear’ in ten years’ time. Smith said the price war with discounters like Aldi will force Woolworths and Coles (which currently have 80 percent market share in Australia) to get their costs down by reducing staff and product range. Aldi’s expansion, he concluded, would eventually send one or both out of business. n RICHARD SMITH
FAST PACE MARKET As China currently represents 11 percent of global food and beverage sales, SIAL China’s influence is also growing at fast pace. To be held in Shanghai from 17 to 19 May 2017, the event is set to attract 3,200 exhibitors and 80,000 professional visitors from more than 67 countries, providing all attendees with valuable insights into this Asian market. For more information, visit www.sialchina.com. n
THOUSANDS OF NEW JOBS LONG LIVE THE POTATOES
With 72,000 tonnes being thrown away annually in the UK, potatoes are the most wasted vegetable. Sainsbury’s has now launched new opaque packaging to stop potatoes going green, helping consumers save £230 million a year. “We’re confident that this will improve the shelf-life of our potatoes and, while the packaging might be opaque, we’re hoping the results will be clear to see,” said Jane Skelton, head of packaging, Sainsbury’s. n
AS LOCAL AS IT GETS
Belgian chain Delhaize has announced that, by mid-2017, they will start selling vegetables grown on the roof of their Boondael store. A garden and greenhouse will cover 320 sqm of rooftop space, with produce being sold at a cheaper price than the organic vegetables they offer. “If everyone embraces the idea, as Delhaize has done, we will attain our target of 30 percent of fruit and vegetable production through urban agriculture way before 2035, as is currently planned,” said Céline Fremault, Belgium’s Minister for the Environment. n
election and the instability across the Middle East. The World Trade Organisation reports an average of 22 new trade restrictive measures introduced each month. This disillusionment with globalisation is also contributing to political risk, with the expected rise of populist parties across the globe. Against this background, exporting companies are facing new hurdles. n
Nestlé has announced it will offer at least 3,000 new employment opportunities for young people in the UK and Ireland by 2020, as part of a wider Nestlé Needs Youth pledge to create 35,000 jobs in Europe, the Middle East and North Africa. “Nurturing young talent is one of our core beliefs and at the heart of what we do at Nestlé,” said Fiona Kendrick, UK & Ireland chairwoman and CEO, Nestlé. “Opportunities such as apprenticeships provide a fantastic first step on the employment ladder.” The company has launched new apprenticeship and graduate roles in three key areas; food manufacture and confectionery, IT apprenticeships and the Chartered Manager Degree Apprenticeship scheme. n
THE SWEETEST TRADE SHOW ISM, the leading global trade fair for the sweets and snack industry, will return in Cologne from 29 January to 1 February 2017. The four-day event is an exciting opportunity for both major brands and newcomers to view innovative products and discuss the latest trends. It’s not too late to plan your visit: tickets are available at a discounted pre-sales price. For more information and travel/accommodation advice, contact New Zealand ISM expert Robert Laing. Ph: (09) 521 9200 E: robert@messereps.co.nz. n
CUT WASTE TO SAVE MONEY
A few months ago, France took action against food waste by forcing supermarkets to donate their food to charity, and the first results are already visible. The French Environment and Energy Management Agency, ADEME, recently teamed up with five supermarket chains to experiment the new system in ten stores. ADEME found that, if adopted across the country, the measures would save 300,000 tonnes of food per year and over 700 million euros. The agency also calculated that a supermarket’s grocery sales would increase by an average of 0.9 percent. n December/January 2017
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Celebrating The Season
The Otaika Valley Free Range Egg brand has been dressed up with a special festive label. A limited-edition holographic-foiled label shimmers and shines inviting customers to enjoy the season with quality produce from a brand they know and love. For further information, contact info@otaikavalleyeggs.co.nz.
Plenty Of Fibre Ride The Wave
Tao Kae Noi created a wave that the rest of the world is catching, and now New Zealand needs to jump on. Their Crispy Seaweed range offers a healthy way to snack without compromising on flavour. The line-up includes Original, Hot & Spicy, Seafood, Tom Yum and Wasabi. Snacking on these is guilt-free, as they are low in fat and calories, and high in fibre, iron and protein. Healthy does not mean bland, and Tao Kae Noi never let their value of flavour and quality slip, packing a flavour punch while staying fresh and crispy. Contact Oriental Merchant (NZ) Ltd at nzenquiries@ oriental.com.au for more information.
Clean Energy
Goodness Kitchen Energy Smoothie Bases are 100 percent natural, simple and tasty energy boosters that fuel Kiwis’ day the right way. Featuring a mouthwatering blend of mango, banana, passionfruit, linseed and ginger, with a hint of turmeric and black pepper, these bases are easy to make: it takes just 30 seconds from freezer to shake, with no need to clean up. Free from added colours, flavours or preservatives, each sachet is all about the fruit. RRP $9.99 for 4x120g sachets.
Healthy Fiesta
Packed with the goodness of whole grains, new Old El Paso Whole Grain Stand ‘N Stuff Tortillas are simple to fill, hold and eat, offering Kiwis a deliciously healthier way to eat the Mexican flavour they love. Whether they’re stuffed with fresh salad, shredded chicken or crispy fish, these tortillas can create a different taste sensation every night. RRP $5.99.
Magical Blend
Limited-edition Fix and Fogg Fruit Toast combines their batch-roasted super crunchy peanut butter with apple pieces, Ceylon cinnamon and diamond muscat raisins. Sweet, spiced and buttery, this magical blend has all the characteristics of a great fruit toast. Delicious on warm bagels, in smoothies and breakfast bowls.
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In perfect time for the barbeque and picnic season, Kiwi brand Vogel’s is expanding its gluten-free gourmet buns range to include a new wholemeal option. Soft, tasty and with the added benefit of wholemeal fibre, these buns are available in convenient resealable packaging, as with the rest of Vogel’s Gluten-Free range. Sold in packs of five for $7.99.
Box Filled With Flavours
Barrys Bay Cheese is bringing something new to Kiwis’ tables this summer, with the launch of their 3 Cheese Selection Box filled with a variety of flavours; Wood Smoke, Aged Cheddar and Vacchino Romano. This well-crafted box makes a nice gift or foolproof nibbles which are sure to go down a treat. Boxes are available now at Countdown with a Low Price Every Day of $10.
Natural And Nutritious
Bucking the trend of many processed snacks and convenience foods that are known for their low nutritional value, new Tasti Made Simple Wholefood Bars contain only four key allnatural ingredients, which are pressed together to form a delicious wholefood bar. With a 3.5 and 4 health-star rating across the range, these snacks have no hidden nasties and no added sugar, being sweetened only with dates. Available in three flavours; Cocoa Orange, Forest Berries and Lamington. RRP $4.99.
Authentic Seafood Dumplings You could go a long way to taste dumplings this good, but thanks to United Food Co. you won’t have to. This new range of authentic handmade dumplings is inspired by the exotic aromas and ‘hustle and bustle’ of Asia’s famous yum cha restaurants. Real Eastern flavours, fresh local ingredients and recipes perfected over generations combine in ways that implore you to dunk and devour. So why resist? Bring genuine Asian inspiration to your store now. Three SKUs available in 12-piece boxes: Ginger Prawn Dumplings, Mixed Prawn Dim Sum and Prawn Hargow. To order, contact United Fisheries Marketing team.
A Sweet Christmas Spicy Addition
Roasted in New Zealand using lime juice, chilli, cinnamon, cloves and hibiscus, Tio Pablo’s spicy rockmelon seeds are free from gluten, dairy-free and vegan-friendly. Available in 150g packs with a RRP of $6.50-7.50, they are rich in vitamins A and C, and packed with potassium, magnesium, fibre, B vitamins and vitamin K.
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Christmas is just around the corner, and Donovan’s limited-edition premium Seasonal Collection is back again. The line-up includes six unique and indulgent festive treats. It’s a welcome return for three seasonal favourites— Chocolate Sea Salt Caramels, Double Chocolate Fudge and Almond & Cranberry Clusters. There are also three delectable additions, namely Fruit & Nut Chocolate Bark (with 60 percent dark chocolate and crunchy Manuka honeycomb), Chocolate Gingerbread Clusters (with milk chocolate and gingerbread spices), and Coconut Ice Squares. The product comes in a Pohutukawa-themed box, making it the perfect gift or treat to share. RRP $8.99.
lastword
Among our thoughts for 2016 is whether stand alone food outlets the likes of Nosh and similar can survive in the face of the supermarket expansion by way of more stores and wider product ranges. After all the smaller offerings and higher prices don’t really make much sense in today’s world. It may well be that their survival rests on ranging and consumer perception— and a change of strategy. Fresh may well be their saviour but certainly dusty grocery shelves shouldn’t be in the mix. At the same time, we see the local demise of the optimistic Pie Face operation that started out with such high hopes. It also went broke when this Australian operation went into the US. The meat/butchery business is one to keep an eye on and I don’t predict a great future of the likes of the Mad Butcher franchise the way supermarkets are now dominating the meat business. Watch this space in 2017.
I got lucky and won the office sweep on the Melbourne Cup. Fortunately, I didn’t have any money on my nephew who was riding in the event and led almost all the way at around 100-1 but didn’t make the distance. Which reminded me of that famous New Zealand horse that the Aussies called Phar Lap. Their accent got it wrong because in New Zealand it was named Phillip. Bit like Arnotts “mulk error route buskiets”.
Watch out for more of our local producers taking the export trip to Aussie and elsewhere. Some of the local producers are starting to do well with products that have been of interest here but needed bigger volume markets to succeed. Despite our stores stocking a wide variety of products, mainly imported, there’s still opportunity in locally-made and promoted. Both our retail friends are now making a play for local artisan goods for variety and that’s a good thing. It will be interesting over the next year or so when both groups decided to reduce their category inventories and delete some of the increasing imported ‘me too’s’ that are simply space wasters. In a market the other day and as an example I saw around eight different brands and types of tomato sauce – and that’s just ludicrous. For those of us who might have been worried, we have discovered the difference between bird flu and swine flu. One requires tweetment and the other requires oinkment. We see Nestlé has taken the plunge and opened up a permanent KitKat Chocolatory in Melbourne where consumers can create their own personalized KitKat. They say it is a premium chocolate experience where the handcrafted product can be found with one-off flavour combinations from an ever-changing range of ingredients.
And speaking of Australia, the industry has until November 2018 to detail country of origin on packaging. Woolworths has already displayed CoOL on 25 of its private label products and is also showing it on a selection of fresh produce even though over 90 percent was locally sourced. The sugar component in our food and beverage continues to get a hard time but it is one of those things that can’t be dramatically changed overnight. The industry is well aware of sentiment in the marketplace, stirred predominantly by health academics, but they seemed to take little notice of the major changes that have already taken place. There’s a majority of consumers out there who don’t want a taste change in their regular fare and producers may well struggle to meet further sales of regular lines that start to taste different. But there are some good things happening and, as a side issue, we were at the Dilworth boarding school in Auckland the other day where chefs have rolled out a new eating plan that is low-carb, low-sugar and mainly gluten-free and have completely outed refined sugar altogether – prior to that they were going through 18kg of sugar per student each year.
their store after the earthquake. They had their supermarket open early and late and was cleaned out of many basic products despite the store suffering like many other locals. Well done Mel, Glen and staff, many of whom had their own problems. We’re always looking for the next big thing and while it may not be that big, in Europe right now there’s an emphasis on new foods for under five-year-olds. It’s a market that has not been exploited here where most of the offerings are targeted solely at one and two-year-olds. Could be something in it. Unfortunately, what has been found is that much of the baby and toddler snacks often fall short on nutrition and the marketing leaves a bit to be desired. Well, that’s enough for 2016. Time for a holiday even though most of the industry will be flat stick. This family-run business and our hard working staff really appreciate the support we have had over the past 12 months and we’ll be back again in 2017 with more of the good news and outrageous opinions.
Peter Mitchell Publisher
Hero of the past month award must go to Mel Sprott and Glen Steele of Kaikoura New World who had a major run on
Crispy Seaweed ge Ran Celebrating the season the Otaika Valley Free Range Egg brand has been dressed up with a special festive label. A limited edition holographic foiled label shimmers and shines inviting customers to enjoy the season with quality produce from a brand they know and love.
Ride the wave of something new Tao Kae Noi’s Crispy Seaweed range offers a healthy way to snack while still delivering your taste buds a flavour sensation
For more information or a sample of Tao Kae Noi please contact: For further information contact info@otaikavalleyeggs.co.nz or phone 0800 682 452
ORIENTAL MERCHANT (NZ) LTD Tel 0800 10 33 05 Email: nzenquiries@oriental.com.au Website: www.oriental.com.au December/January 2017
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My Main Course is an ingredient that helps with inspiring meal ideas that can be customised by the consumer to create their own homemade meal. The range features four meat in sauce and two vegetarian varieties that can be found in the chilled foods section. Flavours include, Thai Chicken Curry, Savoury Mince, Pulled Pork, Mexican Chicken, Slow cooked Baked Beans and Green Lentil Dahl.
brand association
My Main Course is made with quality Hellers and Santa Rosa products along with premium produce for the vegetarian range.
marketing support • • • •
TV, magazines, paper, mailers, associated EDM and social media in store tastings our ‘Taste Truck’ sampling on pack promotion, extensive website and social media recipes
product details 450g – meat & sauce range
vegetarian
1m
$
500g – vegetarian range Direct to store • 6 per carton • line priced • gluten free
mymaincourse.co.nz