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Dec/Jan 2020 • Vol. 13 No. 1
20 mins with Tom Jones-Griffiths (see page 10)
news
CAKE FOR A CAUSE
Original Foods Baking Co has raised over $79k for St John over the past two years from selling its Red Velvet cakes. Since 2017, one dollar from every OFBC branded red velvet cake has been donated to the charitable organisation through the Cake for a Cause campaign. Customers purchased Red Velvet cakes from Countdown supermarkets, selected New World outlets and Pak’nSave. “We are honoured to be able to show our gratitude and support of the incredible work that St John does in helping save hundreds of lives every year,” said OFBC managing director, Jane Mayell. “Original Foods Baking Co has become a firm favourite among New Zealand families, especially when it comes to celebrations, so we’re thrilled to have raised much-needed funds for St John through our Cake for a Cause campaign.” n
ALL GOOD VISITS GROWERS All Good Bananas co-founder Matt Morrison and GM Marketing Faye MacGregor, Shane O’Brien from T&G along with Brigit Corson and Phil Whitehead from New Zealand’s largest Fairtrade banana retailer Foodstuffs had the incredible opportunity of visiting the All Good Banana grower communities in El Guabo, Ecuador. All Good Bananas have been working with the grower communities for nearly 10 years. During their trip, they visited grower farms, heard grower stories, met their families and witnessed firsthand the positive impact that all of the social projects are having on the communities. One of those projects was visiting Escuela fiscal mixta Francia, a school that the All Good Bananas Fairtrade Premium has supported. The visit was marked with the opening of a new classroom. The school children danced and it was a very memorable experience for all of those involved.
Other key social projects visited included the plastic recycling centre and the bio plant; a site that manufactures organic pesticide, made from natural resources; A woman in business centre where Fairtrade funding has allowed woman in the community to utilise their skills with the benefit of providing an income back to the individuals and their families as well as develop their personal business and practical skills. “To be able to connect with the growers in person, and see the process it takes to get All Good Bananas to New Zealand was an incredibly humbling experience. As was seeing the social projects, the impact they are having on the communities and the real tangible results,” said MacGregor. The All Good Bananas team have come back even more motivated to work harder to have a bigger impact on the grower's lives in Ecuador. n
TROLLEY TECHNOLOGY
NEW METRO STORE
Countdown has unveiled its first Metro small format store in Auckland’s CBD, designed with local shoppers in mind. The store features a unique range of fresh food and groceries that has been specifically tailored to central city residents, commuters, workers and visitors. Metro options include breakfast, lunch, dinner, grab-and-go options, barista-made coffee, fresh sandwiches made in store, deli salads, hot food, meal kits, catering options, kombucha on tap as well as a select range of groceries for top up shops. “The new Metro is located in a burgeoning part of the CBD with a number of apartment complexes and transport hubs nearby. We’ve noticed a real shift in how our CBD customers are shopping and we’ve kept this at the forefront of our design and range,” said Natalie Davis, Countdown’s managing director. “When we researched the CBD, we found that 65 percent of city centre customers want hot meals for lunch to take away, 61 per cent want coffee to go and 74 percent want snack food. But they also want to be able to select something for dinner that isn’t just takeaways and to get their essentials like bread, milk and fruit as well without having to stop somewhere else on the way home,” said Davis. The Metro store at 600m2 stocks about 5000 products, compared to the 3000m2 and up to 25,000 products at an average Countdown supermarket. n
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New World will be the first supermarket in the country to offer customers a frictionless and integrated digital experience in stores. Zoom Trolleys has a built-in tablet enabling customers to shop more efficiently and manage budget with ease. The trolleys will save customers time at checkout, check their spending as they shop, easily search for specific products and integrate with existing shopping lists. “Our Zoom Trolleys create a touchpoint between the digital customer experience outside of the store, and the physical customer experience inside of the store,” said Chris Quin, CEO, Foodstuffs North Island. “The integration between the New World App and Zoom Trolleys will create a frictionless shopping experience for
customers. There’s no more juggling your paper recipe printout or shopping list, or fumbling on your mobile phone looking for dinner inspiration while pushing your trolley in store.” n
NEXT GENERATION STORE New World Pukekohe has opened, offering shoppers a first look at New World’s next generation of stores. Lindsay Rowles, Foodstuffs North Island general manager of membership and property, said New
World Pukekohe’s design aims to inspire and redefine the customer experience, and one that will serve as the cornerstone for future New World stores. “We are redefining the world of supermarket shopping with the opening of New World Pukekohe. It’s the next gen of the New World brand, but it’s also a place for the community by the community,” said Rowles. “Shoppers will find products that are unique to the local community and the store pays homage to the bounty of produce grown in the Pukekohe area; an area with deep roots in arable and vegetable farming.” The store is located on Paerata Road, the main thoroughfare in and out of Pukekohe and has 150 accessible carparks. New World Pukekohe has provided 130 jobs for locals in the area, from produce, bakery, butchery and seafood in-store fresh experts, to checkout operators and department managers. n
MEETING DEMAND FOR ULTRA-CONVENIENCE “The way New Zealanders and the world shops has changed dramatically since Countdown launched its first ‘online’ shopping offer in 1996 with an order form and a fax machine. Today, two working parents is the norm, constant technology and communication means we’re ‘always on’, and having enough time and mental space to leisurely wander a supermarket could be seen as a luxury. Sally Copland
General Manager Digital, Woolworths NZ
2 MEGA EVENTS. 2 DATES.
At Countdown, we have steadily seen Kiwis’ embrace the convenience of online shopping, with 38 percent growth in July to September 2019 quarter, to 8.5 percent of our total sales. In some stores, we’re seeing more than 20 percent of sales online, which is not only phenomenal from a global retailing perspective, but it’s also putting pressure on our in-store experience. However, the demand for what we call ‘ultra-convenience’ isn’t slowing any time soon, which is why Countdown is opening our first ever - in fact, New Zealand’s first ever dedicated online grocery fulfillment centre, or eStore.
Scheduled for April 2020, the Penrose eStore in Auckland will look just like a regular supermarket, with fruit and veges, meat and freshly baked bread, but there’ll be one key thing missing - the customers. A team of 165 personal shoppers will select and pack thousands of online home delivery orders from ten of our busy Auckland stores, including Ponsonby, Mt Eden and Mt Wellington, without a customer in sight. The store will have 27,000 products on the shelves and we’re also excited to be introduced partially automated micro fulfillment capabilities in partnership with Takeoff Technologies. This will help move products closer to Countdown’s team of personal shoppers, saving team members thousands of additional steps walking up and down the aisles to locate products. Using a store’s existing footprint to improve online operations, Takeoff’s automation minimises the space required by using innovative technology in compact vertical spaces. At Countdown, we see the future of grocery shopping as a mix of services that are fundamentally focused on meeting our customers’ needs and expectations, and their lifestyle.
The new eStore will allow us to accelerate the speed at which we can make online orders available for our customers, with more same-day ordering and delivery windows, things today’s customers are telling us they want, and need. Online orders for Pick Up will remain at our customers’ local supermarkets for collection in-store. With delivery volumes moved to the eStore, we’re expecting this to free up product selection and space for our in-store customers and Pick Up orders, not to mention making life easier for our team. Whether it’s an eStore to service customer demand for ultra-convenient deliveries, free Pick Up nationwide, and a network of stores that is localised to where our customers live and work, this is an exciting time to be in retail.” n
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December/January 2020
internationalaisle POSH NOSH FOR POOCHES
TAILOR MADE STORE
Coles has unveiled its most innovative supermarket yet, inspiring customers with a brand-new concept as part of a bespoke offer aimed squarely at the needs of the local community. The new store features a living herb wall, the largest range of vegan and vegetarian products in the country, a pick-and-mix bar just for dogs, a pineapple coring machine and a deconstructed meal kit station, which helps customers create custom made delicious dinners that can be prepared in 30 minutes or less. Coles identified shoppers who wanted more convenience at meal times, healthy meal options and expressed a love of
their furry friends. The new store will be a destination for health and convenience offering more than 600 new, readyto-eat products designed to make life easier for busy customers. It also has a wide range of single-serve healthy meal options reflecting the higher proportion of singles and couples without children living in the area. The store also features improved sustainability measures including doors on all fridges to reduce energy use, as well as a zero-food waste policy under which unsold food that cannot be donated is diverted to organic composting and green energy generation. n
They’re considered top tea-time treats for the posh but now for the first-time dainty macarons will be available for dogs. The luxury canine delicacies have been launched by Tesco and are not only hand-created but are also individually packed. “More and more people are making sure the family pet doesn’t feel left out at Christmas and these macarons are aimed at them,” said Tesco pet food product development manager Helen Coxon who helped devise the treats. “Macarons for humans are considered posh nibbles and the very best ones can cost nearly £30 for just 12. Of course, these chunky
macarons are made specifically for dogs and contain a dog-friendly yoghurt filling. These petite treats are perfect for dogs of all sizes so even smaller dogs can enjoy a gift from Santa Paws this year.” The macarons are exclusively made for Tesco by Lincolnshire family-run pet food business based near Boston who grow the wheat that goes into pet biscuits. The arrival of the luxury doggy treats comes as 54% of millennial pet care buyers (aged 19-38) say they would cut back spending on themselves than their pet (Mintel data Oct 2018). And 38 percent of millennial pet food buyers say they are interested in buying human-style pet food. n
OVERCOMING LIQUOR LIMITATIONS
AGE OF CONVENIENCE Caltex Australia and Woolworths have launched the first Caltex Woolworths Metro store in North Ryde, New South Wales. Designed and co-created by two iconic Australian brands, the new store sets a new benchmark of convenience for Australians looking to fill up and meet their convenience shopping needs when on the go. The new store format, to be owned and operated by Caltex, features a curated product range perfect for customers looking to grab something fresh to eat for breakfast, lunch or dinner or to pick up high quality fresh food and groceries for later. “We’re excited about redefining the convenience experience for our customers. We know Australians lead busy lives and are looking for great quality fresh food for a meal on the go or to make preparing a meal at home a little bit easier,” said Jo Taylor, Caltex’s executive general manager, convenience retail. “Our new store will set the new standard of service, product quality and range that customers will begin to expect when they shop in the petrol and convenience sector.” “As customers’ needs change and
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demand for fresh, food-for-now and food-for-later continues to grow, so too do the expectations for quality and convenience,” said Ian McDonald, Woolworths general manager, wholesale. “Caltex Woolworths Metro is an exciting next phase of our partnership with Australia’s leading fuel network. We’re delighted to help bring together some of the best elements of both businesses for the benefit of our mutual customers.” n
German retailer Aldi, has applied to bring liquor in to stores following years of campaigning. Due to liquor licensing limitations, liquor is currently not sold in any South Australian supermarkets. The ban comes under the ‘packaged liquor’ rules, which prohibit the sale of alcohol in any business ‘ordinarily known as or advertised as a supermarket, convenience store or delicatessen’. However, Aldi has applied under a ‘producer’s licence’,
putting them in the same category as cellar doors to sell their own stock. To produce its own range, Aldi has teamed up with local breweries, winemakers and spirit makers. “The public of South Australia have spoken very loudly through social media and in other forums, regarding their strong support for ALDI operating its liquor service in SA,” said Viktor Jakupec, managing director of South Australia for ALDI Australia. n
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 2020
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COLLABORATION IS KEY TO SAFETY
The diversity of businesses across the supermarket supply chain is matched by the diversity in health and safety procedures. It is not uncommon for procedures to vary from site to site, or from supplier to supplier.
Liz May
CEO ShopCare
T
ake for example, a truck driver picking up and delivering goods to numerous sites across the course of a day or week. They are required to comply to the safety procedures specific to each site visited. But if procedures and terminology vary from site to site how are the drivers expected to remember what to do where? Induction training at each site may also vary - the information covered, and the frequency of training or refresher sessions. Think about the number of food manufacturing workers who move
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between employers. As workers change employment, they take with them the knowledge and understanding of their previous workplace. There is an expectation that certain procedures will be the same and although they receive training, they carry with them habits from previous roles. For the driver or the manufacturing worker, does this confusion and inconsistency lead to increased risk? Does increased risk lead to an increase in workplace incidents? How many food and grocery supply chain workers’ lives are we putting at risk every day? Imagine if procedures were similar at each and every site. What impact would this have on compliance, near misses, and workplace incidents? Every employer wants to do the best by their employees, but are we approaching the problem of workplace standardisation with an adequate
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By fostering collaboration and knowledge sharing between likeminded businesses, we can reduce complexity and inconsistency. Over time we aim to find a common language and standards that can be taken out to other sectors, eventually leading to greater consistency across the industry. solution? It makes sense to take a coordinated approach to health and safety. Industry leadership and sector collaboration are key to driving long term positive change. To look at this issue from a business perspective, simplifying and aligning workplace health and safety terminology and procedures, where logical, will reduce overall risk and improve business efficiency. ShopCare understands there is not always one single practice which will apply across all organisations, when every business presents with different challenges, layout, equipment, processes, and operational risks.
The idea of ‘best practice’ being the only option for organisations is flawed. In place of ‘best practice’, we are striving for ‘proven practice’. We are asking businesses with similar challenges to collaborate and share their ideas, experiences, and practices with other organisations with similar operating environments, with the aim of applying ‘proven practice’. By fostering collaboration and knowledge sharing between like-minded businesses, we can reduce complexity and inconsistency. Over time we aim to find a common language and standards that can be taken out to other sectors,
LEFT TO RIGHT: • Mike O’Brien - Independent Chair, HASANZ • Nicole Rosie - Chief Executive, Worksafe • Pejman Okhovat - CEO, The Warehouse and Warehouse Stationery Ltd • Jon Adams - Executive General Manager, Toll New Zealand • Roy Campbell - CEO, Smith City Group • Liz May - CEO, ShopCare
eventually leading to greater consistency across the industry. A coordinated, collaborative approach will improve the safety, health, and wellbeing of all employees involved in the creation, supply, delivery, and sale of the numerous items that grace our supermarket, dairy, and retail shelves. To drive this initiative forward, we are establishing a number of industry subgroups, with senior representation from a cross-section of food and grocery retail and supply chain members. These groups will provide dedicated focus on the following risk areas: Transport; Mobile Plant and Equipment;
Manual Handling; In-Store; Health and Wellbeing; Leadership; and Manufacturing. Bringing senior people around the table to address the challenges of overlapping responsibilities between companies ensures ownership within organisations and the momentum for change. ShopCare has already identified the areas of critical risk, and highest need, are: Transport; Mobile Plant and Equipment; Manual Handling; and InStore. The subgroups will initially focus their attention in these areas. ShopCare is also asking businesses to share health and safety data
Forthe thebest best For packaging ininpackaging design. design.
and submit case studies relating to improved practices and procedures. This information contributes to a resource library which can be accessed by all industry members. ShopCare will proactively share these examples with industry members in a series of presentations and workshops to influence the uptake and implementation of improved procedures. As businesses align their health and safety terminology and procedures, we will be able to measure and report on the reduction of injuries as well as the reduction in risk, providing a
benchmark for the food and grocery sector that serves as a strong example for other industry sectors. The benchmark data will provide ShopCare with a real measure of progress, areas requiring focus and initiatives that may require additional resources. Data provided by ACC will overlay and enable ShopCare to gain insight as to overall risk reduction and industry improvement. ShopCare encourages industry members to actively contribute to these initiatives. Collaboration is key to success. Contact us on liz@shopcare.org.nz for more information. n
We thrilled are thrilled to have We are to have picked up four awards at the picked up four awards at the 2019 Awards in the 2019 BestBest Awards in the following categories: following categories: – Packaging GoldGold – Packaging Strangelove Lo-Cal Sodas Strangelove Lo-Cal Sodas Honey Co. Rare Harvest The The TrueTrue Honey Co. Rare Harvest Silver – Design Communication Silver – Design Communication Strangelove Lo-Cal Sodas Strangelove Lo-Cal Sodas Silver – Structural Packaging Silver – Structural Packaging Honey Co. Rare Harvest The The TrueTrue Honey Co. Rare Harvest Thanks to clients our clients partners Thanks to our and and partners a successful 2019. for afor successful 2019.
For the in packaging and and For best the best in packaging communication design, contact communication design, contact RyanRyan MarxMarx on 021 683 683 040 040 on 021 ryan@marxdesign.co.nz ryan@marxdesign.co.nz marxdesign.co.nz marxdesign.co.nz
branding branding & packaging & packaging
December/January 2020
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FHA 2020
2020 marks the return of Asia’s largest biannual food service and hospitality expo, Food and Hotel Asia. In order to accommodate the conference’s drastic expansion and build upon previous years, the conference will now be split into two mega-events; FHA-HoReCa and FHA Food & Beverage. The two events will connect a wide spectrum of global suppliers and key buyers from Asia and beyond, raising the bar on event experience and offering more valuable networking opportunities and desirable quality sourcing options to all attendees.
Whilst FHA-HoReCa (Hotel, Restaurant, and Café) focuses on the hospitality sector, FHA Food & Beverage is aimed at the wider retail market. The largest international F&B showcase in Asia, FHA Food & Beverage will see 48,000 attendees from 100 countries/regions and 2,000 exhibitors in attendance from 31 March to 3 April 2020. The showcase provides global suppliers with valuable access to quality buyers including distributors, importers, manufacturers, and retailers. Attendees will also gain valuable insight into developments and future trends in the food and beverage industry, with original manufacturers of the world’s major and emerging brands making up more than 80 percent of exhibitors.
www.fhafnb.com
KEEPING IT REAL As consumers begin to see the connection between diet, health, and the environment, the demand for food sustainability continues to grow, and the natural and organics industry shows no signs of slowing down. The Natural & Organics zone at FHA-Food & Beverage will showcase the best and latest natural and organic products from around the world. Discover the latest trends and build relationships with prominent industry decision-makers and influencers. The organic food and beverage market is estimated to be worth USD320.5 billion by 2025, largely due to the Asia-Pacific region’s growing agricultural sector coupled with robust consumer demand. The region holds the fastest market growth, estimated at CAGR 22.9 percent through to 2022. Get ahead of the curve at the Natural & Organics Zone. n
THE CUTTING EDGE
The FoodTech Zone brings together in one platform the entire spectrum of food processing and packaging technologies and solutions aimed at transforming the dynamics of the food and beverage manufacturing sector. The new zone will connect F&B manufacturers, retailers, importers, distributors, and businesses with the latest food and beverage-related innovations and solutions. Cold-chain, warehousing, and logistics solutions from regional and international service and product providers will be on display. Exhibition events, activities and in-depth discussions offer networking opportunities with peers whilst gaining market insights and trends directly with experienced leaders and industry attendees from around the globe. n
THE FULL SPECTRUM
Highlights of FHA Food & Beverage 2020 include the FHA Culinary Challenge, where more than 100 culinary talents will compete in the region’s most prestigious culinary competition, and the FoodTech Zone, which will cover the entire spectrum of F&B processing and packaging technology, cold-chain, and warehousing and logistics solutions. The inaugural FHA Beer Awards will celebrate excellence in beer brewing and packaging, focusing on recognising the world’s best beer for the Asian palate, whilst the ever-popular ProWine Asia (Singapore) fair, the largest of its kind in Southeast Asia, will make a triumphant return. Specialty zones for beverage, meat, organic, seafood, and halal products cater to the needs of a diverse range of buyers and manufacturers. n
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THE GREATEST GRAPE As part of the ProWine World Series, the 3rd edition of ProWine Asia (Singapore) returns with a tradefocused platform for international wine producers to tap into the growth prospects of Southeast Asia. Attendees will be able to reach out to key importers, distributors, and suppliers at the largest event of its kind in the region. Jointly organised by Informa Markets and Messe Düsseldorf Asia, ProWine Asia (Singapore) will feature a wide representation of international wine
EDDIE MCDOUGALL
TV personality behind one of Asia-Pacific’s most dynamic wine brands, The Flying Winemaker. As a regional event of ProWine Düsseldorf and held alongside FHA-Food & Beverage, the specialist trade fair provides an opportune setting to forge new industry networks across the synergistic wines and spirits, food and hospitality sectors. n TAN YING HSIEN
and spirit labels, an extensive scope of solutions and concepts for the region’s diverse consumer markets, as well as specialised masterclasses and seminars by industry speakers. Speakers in 2020 include Tan Ying Hsien, the first and only Singaporean Master of Wine (MW) and winner of the Institute of Masters of Wine Champagne Trinity Scholarship in 2010, and awardwinning winemaker Eddie McDougall, chairman of the Asian Wine Review, wine critic, columnist, and
LOOKING BACK
EXCHANGING IDEAS
In 2018, FHA celebrated its 40th anniversary edition. Held across two venues at Singapore Expo and Suntec Singapore, the four-day biennial trade exhibition delivered value and experiences beyond expectations in record fashion.
The FHA-Food & Beverage Conference will allow industry leaders to exchange insights as they discuss the F&B market outlook, processing and packaging trends, and more over the two-day event. New market penetration strategies, investment models, and technological advancements will all come under scrutiny during the conference, which will take place on the first two days of FHA-Food & Beverage, March 31 and April 1.
Here are just some of the astonishing numbers from FHA 2018: • two venues, one mega-show: 119,500 sqm of exhibition area • six specialised sectors • 3,466 exhibiting companies from 76 countries/ regions • 72 international group pavilions • 81,896 total attendees from 120 countries/regions • 55,433 trade visitors (40 percent overseas) • 11 culinary, coffee, and bakery & pastry competitions • four packed conference tracks attended by 350 delegates and speakers Also held alongside FHA2018, ProWine Asia (Singapore) 2018 hosted over 270 established wine producers and distributors from 33 countries and regions, with a strong line-up of 15 national pavilions including Croatia, Spain, Italy, and Austria.
Testimonials
Conference highlights include:
The event complemented FHA to present a complete international F&B sourcing platform for Asia’s buyers. Additionally, ProWines Asia (Singapore) 2018 saw the return of the highly anticipated Champagne Lounge, the inaugural running of the National Cocktail Competition, and a series of wellreceived masterclasses and seminars. n
“FHA is truly a must-attend exhibition in Asia for industry professionals in the food business. It is a convenient one-stop platform for us where we had a good catch-up with our international suppliers. We also met new promising suppliers whom we can work with to further our business expansion plans.”
“My trip to FHA2018 was packed with meetings with suppliers to learn more about their latest product offerings. I have met kitchen equipment brands and tableware specialists! Now, I’m spoilt for choice as I deliberate over the myriad options that I have gathered for our hotel’s new restaurant as well as ongoing room renovation this year.”
VINCENT THAI QUOC HUY Director, Interfoods Limited Vietnam
YAP SIAUW LING Owner, Hilton Bali Resort Indonesia
• Consumer behaviour and product innovation • Manufacturing automation and processing tech • Farm to plate case studies • Trade market outlooks – supply and demand, pricing and taxation • Demand markets for wine trade, halal and organic food products • E-commerce, food services, convenient foods n
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Tom Jones-Griffiths Store Manager, Countdown Newmarket
Tom Jones-Griffiths is the store manager of the newly opened Countdown in Newmarket. With previous retail experience, he has found a love for the supermarket industry. “My passion is developing people and being part of a big team, the energy and pace in grocery retailing is amazing, no two days are the same,” Jones-Griffiths told SupermarketNews.
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have worked in retail for 18 years. Most of my career was spent in the UK with some major non-food retailers. I moved into grocery two and a half years ago when I came to New Zealand.” All those years in the industry have paid off for Jones-Griffiths. “Earlier this year, I was awarded Countdown
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Store Manager of the Year, which made me immensely proud. I feel so fortunate to have worked with such wonderful people who have supported my career.” Jones-Griffiths takes his managerial role very seriously and sees many growth opportunities for the future of the store. The store opened in late November and has been designed to give customers a unique and premium shopping experience. “I think we have done a superb job on the design and feel of our whole store. My favourite part would be our liquor section, The Cellar.” Jones-Griffiths referred to the design of the store and the unity of his team as the most significant highlights. “We have some wonderful colleagues that are excited about being part of the community and are committed to making Kiwis’ lives better.” As supermarkets are seeing a rise in convenience through the growth in online shopping and meal solutions, Jones-Griffiths has noticed the opportunity to expand accessibility in all food categories. “Especially in our health food category, I believe we have done a great job putting together options for every occasion.” “The range in Newmarket is fabulous, and we’re continuing to work with our category buyers to keep adding more fantastic innovation through the health section. Health has become a massive priority for Countdown. “We’re committed to supporting initiatives that inspire healthy eating to address the health challenges that many New Zealanders are facing. Under the Government’s Childhood Obesity Plan, Countdown has signed up to six retail industry pledges to help meet health and nutrition targets.” Countdown Newmarket also does their part with the environment and maintaining a sustainable business. “We are partnering with Westfield Newmarket to reduce the waste that goes into the landfill over the coming year,” Jones-Griffiths explained.
“At Countdown, we’re working hard to reduce waste across the store. We’re also committed to advancing a circular economy wherever we can. For example, we have introduced recycled hard plastic packaging for our in-store bakery products, which can be recycled. The packaging is made by recycling plastic sourced from New Zealand’s own waste stream.” The store has developed relationships with food waste partners at the Salvation Army and Kiwi Harvest, which benefit the community. Along with this, the store has also developed a close relationship with the local primary school. “We truly believe that food is an amazing way for families to connect and we are working with the school to support them in food education and understanding how businesses can support sustainability.” Despite all the success, JonesGriffiths also shared some of the challenges the store has faced. “The biggest challenge in the industry is responding to the customer’s transition to the convenience of online shopping and more frequent top-up visits to the supermarket. Customers are further away from the big weekly shop, and we need to inspire them with meal solutions and healthy, easy options.” In response to these challenges, the store has taken the initiative and created the ideal destination for convenience and food to go. “Our amazing deli team have created fantastic quality and value through a huge range of sandwiches, paninis, pastries and hot food options. Produce has a large variety of salads, fresh-cut fruits and greens.” As Westfield Newmarket surrounds the store, Countdown customers have the chance to have a premium shopping experience. “They can feel cared for and inspired by our service, presentation and freshness.” n
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This year Japan's Food Export Fair, with over 700 exhibitors, showed that this young fair is building an excellent reputation and growing year on year. This year 18,000 visitors attended this promising event that showcases the best that Japan has to offer, from iconic Japanese confectionery to produce, sparkling sake, jellies, fruit juices and wines - all ready for export. The evening VIP networking event gathered over 800 top food industry executives, suppliers, buyers and visitors together with the common
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theme, how do we do business together? Quite often we are asked, which fair to attend? Well, if you are looking for links to Japan, networking opportunities, and import inspiration then this show is definitely recommended on our calendar for both opportunity to import and creating business links with Japan. Make a diary note: next fair is 13 - 15 October 2020 at Makuhari Messe, Japan. For more information visit www.jpfood.jp. n
Leading the change: STATE OF THE INDUSTRY 2019
“Change has never happened this fast before, and it will never be this slow again.” Wotif founder Graeme Wood’s celebrated words formed the theme for IRI’s 2019 State of the Industry report, presented to FMCG business leaders in November - and change was very much evident in its findings.
Vicky Morgan
Account Director, Retail IRI
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gainst a backdrop of solid retail market growth (3.9 percent in the last MAT period), fortunes within the store varied significantly. Pre-packaged grocery grew by $472m (+3.4 percent), led by cheese, eggs and smallgoods, with growth in GM and non-food (+2.2 percent) coming from reusable bags, toilet paper and prepaid cards. Such divergent pictures show a sector undergoing transformation: driven by innovation, changing consumer tastes and behaviours, and New Zealand’s rapidly-evolving retailer landscape. Those shifts have seen new retailers emerge in the destination, everyday value or convenience categories, alongside a blurring between the offerings retailers currently provide. As well as diversifying and strengthening their offers to increase growth and drive loyalty, retailers are fighting hard to communicate value to the priceconscious Kiwi shopper. 61 percent of Kiwis say price is still the most important factor when purchasing a product.
Reviewing these performances across the channels IRI measures and thinking about the larger value equation, we at IRI landed on four themes that have resonated with consumers and driven sales.
BE CREATIVE
This is all about being experimental, offering something different and having fun with brands, providing some excitement and giving consumers something to talk about. It helps make the brand an experience, not just a product. A clever example is the 19 Crimes wine brand, using augmented reality technology to engage with their consumers and create “talkability” about their wines. It’s now the thirdfastest-growing wine brand in NZ. Another success story is within the petrol and convenience channel - the Krispy Kreme launch. P&C are now selling 55,000 donuts each week, helping to grow the food-on-the go category in this channel by $6.7m.
BE BETTER
Better, in this sense, is all about health and nutrition. While it’s no longer a new trend, it continues to grow in importance as consumers seek to take control of their lives and especially their health. A fast emerging focus has been mental
wellbeing. Notably, Apple announced that “Calm” was their number-one app of the year, while ingredients that support brain function and mental clarity, such as Blackcurrant and Ashwagandha, enjoyed strong growth. Protein continues to be a growth driver across many food categories, with 49 percent of 18-34 year olds defining healthy food as high in protein. Despite all the news about alternative proteins, animal proteins continue to enjoy strong growth, as does yoghurt, nutritional snacks and milk. Wanting to ‘be better’ has also driven the rise of what we term ‘permissible indulgence’- a great example being beer. 2019 saw the continued rise of low-carb and low alcohol propositions, while the youngest generations aren’t just drinking less: many aren’t drinking at all.
BE HELPFUL
Consumers love brands that help them save time, whether that’s where and how they purchase or in preparation. An example is pizza, which is highly convenient and continues to see double digit growth. Consumers, particularly Gen Z and Millennials, increasingly want ‘do it for me’ products, such as frozen or pre-prepared meals, with this space adding $6m in the past year. The same trend applies in health and beauty, with more and more products adding value via time-saving benefits,
IRI is a leading provider of big data, predictive analytics and forward-looking insights that help CPG companies, OTC health care organisations, retailers, financial services and media companies grow their businesses. With the largest repository of purchase, media, social, casual, and loyalty data, all integrated
Retailers are fighting hard to communicate value to the priceconscious Kiwi shopper. 61% of Kiwis say price is still the most important factor when purchasing a product. such as SPF, 7-in-1 and BB creams.
BE RELEVANT
What’s considered everyday food in New Zealand today is very different to 30 years ago, with consumers enjoying a much more diverse repertoire of tastes and cuisines. This creates ever-growing opportunities to satisfy consumers’ desires for experimentation and culinary adventure. Our consumers are also more concerned than ever about the build-up of plastic waste in the environment. Brands like Ethique are responding effectively to this, by removing plastic bottles from their product range altogether. The NZ Government banned single use plastic bags in July this year. After removing these from stores, retailers are finding new ways of taking further plastic out of their ecosystem, including changing the way shoppers buy fruit and veggies and initiatives like ‘BYO containers’ in their deli departments. So don’t just hold back, don’t just think about playing in your category like you always have and how you cycle last years’ activity, be the change that is required to accelerate your growth into 2020. These are just a few insights from IRI’s State of the Industry 2019. For the full picture email Vicky.Morgan@iriworldwide.co.nz. n
on an on-demand, cloud-based technology platform, IRI helps to guide its more than 5,000 clients around the world in their efforts to remain relentlessly relevant, capture market share, connect with consumers and deliver marketleading growth. Move your business forward IRIworldwide.com
December/January 2020
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BAXTER’S
Entrepreneurs from across New Zealand submitted their products for consideration in Foodstuffs’ NI annual PitchMe competition, facilitated by SupermarketNews. Food, beverage, and packaging innovations were assessed by an industry panel, with the top ten producers invited to Auckland to pitch their products live, Dragon’s Den-style, to some of the supermarket industry’s most senior figures.
ALCHEMY
Based in the East Cape, Alchemy celebrates mountain-foraged honeys with its range of honeybased beverages, including mead, sparkling mead, Bellini, liqueurs, and frizzante. Russell Cowley, an Auckland-based representative of the company, pitched Alchemy’s entire range of honey-based drinks as a novel alternative to the crowded beer and wine shelves. Mead and honey beverages are experiencing a strong resurgence, tapping into both
ZELI!
grandmother’s original recipe. It’s been a long road for Smida, who started his business in 2014. Celebrating Zeli’s birthday the very next day, he expressed both gratitude and relief for the opportunity to get his product in front of such an esteemed panel, before heading off back to the factory to hand-produce another batch of sauerkraut. n
Czech-born Vrati Smida delivered an enthusiastic pitch for his sauerkraut business Zeli. Born from his love for a traditional Czech staple, Smida’s goal is to encourage New Zealanders to fall in love with the humble cabbage, crafting his sauerkraut with traditional equipment, old-school craftsmanship, and his
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the alcohol and health sectors. Given that meads can now be found in restaurants and supermarkets around the world, Cowley and the rest of the team at Alchemy believe New Zealand, with its worldrenowned manuka honey industry, is in prime position to lead the way as this sector expands. “We were all in there keen to talk our little hearts out, but the most important thing for me was to listen,” Cowley said of his PitchMe experience. n
OWNED
Berrin Moody brought a touch of the wild west to proceedings with his line of Baxter’s Original sauces. Founded by Americans Scott and Erika Baxter after the couple struggled to find tasty allergen-free sauces that reminded them of home, Moody took over the business in 2017 when the Baxter family moved back to the United States. “This is what I’m passionate about, hopefully that came through,” Moody told SupermarketNews after his pitch. “We’re just trying to make it happen. I was a bit nervous, but the panel were calm and made me feel relaxed, and I just spoke from the heart.” n
ZERO BAG
Sustainability was a recurrent theme at PitchMe, and no product espoused this principle more than Zerobag. Created by Aaron Jones in 2008, Zerobags were initially made from recycled parachutes, providing an incredibly strong, lightweight, compact solution for shoppers. After struggling to source enough second hand parachutes to meet demands, the company has been developing the new Zerobag 2.0, made with 100 percent certified recycled plastic bottles (rPET) material.Business partner Perrin Jones demonstrated the Zerobag’s remarkable strength by loading up the product with heavy water bottles. “It was a new situation, the heart rate went up a bit, but it was definitely a positive experience,” said Jones. “We’re not the cheapest bag around, but we’re high quality, and we believe supermarkets should be bold and innovative and lead the way. Whether or not the number crunchers want to do that, we’ll have to see!” n
MANUKA HONEY DROPS Rhonda McLeod spotted a gap in the market for a refined sugar-free, manuka honey lozenge, which led to the development of Manuka Honey Drops. McLeod opted to pitch the lozenges as a potential addition to the Pam’s Finest range, in an attempt to provide the panel with a fleshed-out vision for the product. “I’m a very visual person, and I explained that to the panel,” said McLeod. “This way they could actually see what it could look like going forward.” As consumers move increasingly towards low or no-sugar options, McLeod was confident her product made an impression. “I think the fact that our product has no refined sugar caught their eye – we’re interested in working with Foodstuffs, doing good stuff for Kiwis.” n
KAI CARRIER
Denise Newman travelled up from Hamilton for the event, pitching her company Kai Carrier’s range of sustainable packing solutions for food and other items. Newman and her partner Carol recently took over Kai Carrier from founder Kylie Matthews, and are deeply passionate about the company’s core message of sustainability. Reusable, recyclable, freezable, dishwasher safe, and microwavable, Kai Carrier pouches are an innovative alternative to traditional zip-sealed plastic bags, designed to provide a convenient solution for food on the go without compromising the environment. All Kai Carrier pouches come with a 12-month guarantee from the date of purchase, and the panel were impressed with Newman’s pitch, which emphasized the increasing consumer demand for sustainable solutions. n
BAKER BOYS
Christchurch-based Baker Boys have been crafting delicious baked treats for over 25 years. Prioritising fresh, natural ingredients, the company incorporates a sustainable slant, using GM-free ingredients, sustainably-sourced palm oil, and targeting minimal waste as part of its every day operations. Director Simon Philip made the trip up to Auckland for the event, allowing his product’s flavours and textures to speak for themselves. Delivering an unscripted pitch was no problem for the seasoned entrepreneur. “I lead a busy life, and I’m not twenty anymore, I can’t rehearse and remember everything,” he joked. “If you believe in what you’re doing, and you know your product, that’s the most important thing.” n
SOUTH CIDER
PURE NEW ZEALAND ICE CREAM
Paul Brown from Wellington’s South Cider pitched his brand’s range of crisp, dry ciders to the panel. Leading the craft cider movement, South Cider’s whimsical ‘sub-Antarctic’ packaging caught the panel’s eye, not to mention the company’s range of left-field varietals, including the distinctly Kiwi feijoa and apple cider. The day after PitchMe, South Cider launched its newest Black Forest Cider at Beers At The Basin, an all-day event at the iconic Basin Reserve showcasing some of New Zealand’s best craft breweries, wineries, street food, and music. The unusual cider, infused with cacao, went down a storm, and Brown is hopeful to see it on shelves in the near future. n
The team at PURE New Zealand Ice Cream have a simple mission – to create only the purest and most natural ice creams, giving Kiwis and visitors to New Zealand the reassurance that they are tasting delicious ice creams made from the country’s best produce. Anna Howard, PURE’s head of production, flew up to Auckland with colleague Linzi Ebbage-Thomas from Wanaka on the morning of the competition, keen to showcase the company’s range of delicious treats. Whilst ice cream might not seem like a difficult product to sell, Howard explained that it’s not without its challenges. “Nobody doesn’t like ice cream – it’s a really easy product to pitch,” she noted. “The challenge is it’s such a busy marketplace, the shelves are already very full. There’s a lot of competition for super premium placings in supermarkets.” n December/January 2020
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CHEESE MASTERCLASS
When provenance matters, choose GHIOTTI
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OWNED