FMCG APRIL 2022 by The Intermedia Group

fmcgbusiness.co.nz

L E A D I N G

I N D U S T R Y

N E W S

APRIL 2022 – Volume 9 – No 3

PLUS! WINTER WELLNESS n HAIRCARE TRENDS n MARKETING & MERCHANDISING n NEW ZEALAND’S LARGEST FMCG AUDIENCE

contents APRIL 2022

UP FRONT

12 11

EDITOR’S NOTE

INDUSTRY NEWS

SPECIAL FEATURES 12

WINTER WELLNESS

14 SOUP SEASON What’s new for winter 2022 16

DAIRY TRENDS

18 AISLE SPY Haircare category news and trends 20

PRECIOUS PETS

26 FEATURE Leading well 28 MARKETING & MERCHANDISING 36 FGC A huge leap forward 37 JAMES & WELLS Healthwashing – does it still exist? 39

LEGAL ADVICE

EVENTS 40 PM REVEALS NEW PLANS FOR NZ

REGULARS 9 WHAT’S HOT New products in store

EVENTS NEWS

10 BEST IN SEASON Fresh produce update

43 OUT & ABOUT Our people at work and events around the country

11 COVER STORY Tablelands’ quality plant seed spreads are now available in NZ

CONVENIENCE & IMPULSE RETAILING

25 PROFILE Silver Fern Farms Pure Burgers

22 FMCG BUSINESS PRODUCT OF THE YEAR Another finalist is revealed

44 EDITOR’S NOTE C&I Expo New Zealand

GOOD BUSINESS

45 NIGHT ‘N DAY A convenient collaboration

23 INDUSTRY NEWS AND INSIGHTS

48 SUSTAINABILITY PART TWO Working towards a greener future

FMCG BUSINESS - APRIL 2022

[ editorial ]

ADAPTING TO NEW CHALLENGES We have seen radical shifts in consumer behaviour in the last couple of years. The Covid pandemic has fundamentally changed what, how and where consumers eat. Find out in this issue what’s trending in wellness, soups and dairy products and what’s driving sales in our supermarkets right now. We also bring you insights from FGC Chief Executive Katherine Rich, as well as news from the convenience sector and fresh produce updates. Congested ports, supply chain disruptions and staff shortages across all sectors have resulted in shipping delays and the absence of some brands in our stores. The team at Steindle Williams Legal explain on pg 39 what your business can do to mitigate risks and what your obligations are, if you are a supplier. Marketing and merchandising experts reveal on pg 28-35 what’s different in 2022 and how their teams have adapted to the new challenges. If you’d like to share your views, news, product launches or industry insights, please get in touch, we’d love to hear from you. You can also join our daily conversations on LinkedIn, Facebook, Instagram, or Twitter and subscribe to our edm on www.fmcgbusiness.co.nz for weekly news updates delivered to your inbox. We’d like to say “thank you”, to the amazing contributors who have helped to bring this edition to you, and to all the advertisers, subscribers and readers who are supporting our FMCG Business team. We hope you get a chance to have a good break over Easter to catch up with family and friends. Take care out there and stay safe.

Tamara Rubanowski trubanowski@intermedianz.co.nz www.fmcgbusiness.co.nz

PUBLISHED BY C&I Media (NZ) Ltd PO Box 109 342 Newmarket, Auckland 1149 MANAGING DIRECTOR Simon Grover COMMERCIAL DIRECTOR Safa de Valois safa@c-store.com.au EDITORIAL DIRECTOR James Wells james@intermedia.com.au HEAD OF CONTENT Tamara Rubanowski trubanowski@intermedianz.co.nz ph: 027 278 4761 MANAGING EDITOR – C&I NZ Deb Jackson d.jackson@c-store.com.au NATIONAL SALES MANAGER Vicky Bennett vbennett@intermedianz.co.nz ph: 021 626 115 ART DIRECTOR Leanne Hogbin leanne@intermedia.com.au PRODUCTION MANAGER Jacqui Cooper jacqui@intermedia.com.au DIGITAL AND PRINT COORDINATOR Eclypse Lee elee@intermedianz.co.nz

C&I Media takes its Corporate and Social Responsibilities seriously and is committed to reducing its impact on the environment. We continuously strive to improve our environmental performance and to initiate additional CSR based projects and activities. As part of our company policy we ensure that the products and services used in the manufacture of this magazine are sourced from environmentally responsible suppliers. This magazine is printed on Impress stock from Spicers Paper using FSC® MIX source pulp from responsible sources and other controlled sources. We print using BIO-inks that contain base materials from renewable resources including wood resin (rosin, colophony), vegetable oils, linseed oil and soy bean oil. This magazine is printed by ICG, an ToitŪ enviromark gold certified printer.

ON THE COVER For over 30 years Tablelands has been a popular spread for Australian families – and Tablelands’ affordable quality plant seed spreads are now available in New Zealand. Find out more on pg 11.

FMCG BUSINESS IS PROUDLY ASSOCIATED WITH food& grocery COUNCIL NEW ZEALAND

FMCG BUSINESS - APRIL 2022

ISSN 2382-1663 (print) ISSN 2624-4802 (online)

FMCG Business is audited and verified by ABC. DISCLAIMER This publication is published by C&I Media (NZ) Ltd (the “Publisher”). Materials in this publication have been created by a variety of different entities and, to the extent permitted by law, the Publisher accepts no liability for materials created by others. All materials should be considered protected by New Zealand and international intellectual property laws. Unless you are authorised by law or the copyright owner to do so, you may not copy any of the materials. The mention of a product or service, person or company in this publication does not indicate the Publisher’s endorsement. The views expressed in this publication do not necessarily represent the opinion of the Publisher, its agents, company officers or employees. Any use of the information contained in this publication is at the sole risk of the person using that information. The user should make independent enquiries as to the accuracy of the information before relying on that information. All express or implied terms, conditions, warranties, statements, assurances and representations in relation to the Publisher, its publications and its services are expressly excluded. To the extent permitted by law, the Publisher will not be liable for any damages including special, exemplary, punitive or consequential damages (including but not limited to economic loss or loss of profit or revenue or loss of opportunity) or indirect loss or damage of any kind arising in contract, tort or otherwise, even if advised of the possibility of such loss of profits or damages. While we use our best endeavours to ensure accuracy of the materials we create, to the extent permitted by law, the Publisher excludes all liability for loss resulting from any inaccuracies or false or misleading statements that may appear in this publication. Copyright © 2022 - C&I Media (NZ) Ltd

The New Zealand Fresh Bone Broth revolution starts

here

Growing awareness of health and wellbeing is driving sales of Drinking Bone Broth around the globe. Following in the footsteps of the Kombucha revolution, it’s now a US$3 billion+ market with a CAGR (compound annual growth rate) of more than 4.5%. Greenlea Premier Meats has developed the Restore range of grass fed beef and free range chicken broths to deliver the tastiest and most beneficial drinking broths for New Zealand consumers.

Join us in leading the Bone Broth revolution in Aotearoa. Email: restore@greenlea.co.nz restore.co.nz

[ news ]

COMMERCE COMMISSION CLEARS LIFEHEALTHCARE ACQUISITION Healthcare company EBOS Group has been cleared to buy rival LifeHealthcare. The Commerce Commission has determined that the acquisition is unlikely to lessen competition in the New Zealand market. EBOS Group revealed in December 2021 that it had entered into a deal to buy LifeHealthcare. The purchase price was believed to be A$1.17 billion ($1.23 billion). Dual-listed EBOS is Australasia’s largest marketer, wholesaler and distributor of healthcare, medical and pharmaceutical products, with annual revenue in excess of A$9b. ComCom said both companies compete with several other distributors and manufacturers to supply specialist medical equipment in spinal surgeries, which was the focus when determining the outcome of the application.

FRUCOR SUNTORY SELECTS QUEENSLAND FOR NEW FACILITY International beverage manufacturer Frucor is set The multi-beverage facility will include beverage to quench the thirst of the Ipswich jobs market with processing, packaging, warehousing and distribution, a new $430 million facility to be developed with strengthening the company’s ability to service its support from the Queensland Government. customers and the growing Australian market. Premier Annastacia Palaszczuk said Frucor CEO Darren Fullerton said Frucor Suntory is Suntory’s plans for a major beverage manufacturing proud to have operated across Oceania for over facility in Ipswich was another big win for 60 years. “Building on our strong manufacturing Queensland. “It’s an incredible coup of our state that capabilities in New Zealand, this investment in an international company of the calibre of Suntory, Queensland recognises the growth trajectory we that has a global workforce of over 40,000, has believe is possible for our business,” Fullerton said. Frucor Suntory CEO Darren Fullerton chosen Queensland ahead of “Pending approvals, we’re others to establish a permanent planning to start early work manufacturing facility here,” construction in the third quarter the Premier said. of this year and commence “The value of attracting this operations in mid-2024. investment to Queensland will Frucor Suntory is excited to have significant benefits for our be establishing this permanent economic recovery and most facility in Ipswich and we thank importantly, it will create new the Queensland Government jobs for Queenslanders. for partnering with us to make “This project is expected to this possible.” create around 450 construction Taka Sanno, Suntory and installation jobs by Beverage & Food APAC CEO 2023/2024. It will also create added: “In line with our Suntory 160 long-term roles when it ‘Growing for Good’ vision, we starts operating in mid-2024.” want the new facility to set a Frucor is planning a new facility in Queensland The factory will have the benchmark for our investment immediate capability to produce up to 20 million cases of drinks into sustainable technologies to drive efficiency and minimise our each year, with the ability to be significantly scaled up in the future. carbon footprint.”

FOR MORE INDUSTRY NEWS FOLLOW US ON 6

FMCG BUSINESS - APRIL 2022

CHECK OUT WWW.FMCGBUSINESS.CO.NZ

PURE, NEW DELICIOUSNESS ADD A NEW PREMIUM OFFERING TO YOUR FREEZER AISLE. SILVER FERN FARMS PURE* BURGERS.

*PURE Burgers are 97% red meat with added collagen, seasoned with salt and pepper.

[ news ]

PEPSICO NZ APPOINTS MICHELLE CASSETTARI AS GM PepsiCo New Zealand has announced the appointment of Michelle Cassettari to the role of General Manager. Cassettari is the first woman to hold this position and will lead an executive team of which seven out of eight are female. Cassettari has worked for PepsiCo since 2018, when she joined the Australian team as Sales Director of their national Woolworths business. She has since achieved record share gains and developed strategic alignments to customer agendas across the business. In her new role of General Manager at PepsiCo New Zealand, Cassettari’s focus is to continue Michelle Cassettari product innovation for the company’s iconic Kiwi brand Bluebird, drawing on products that are better for you, as well as cementing the brand’s rich New Zealand heritage. Cassettari is also eager to further drive strong diversity and inclusion plans at PepsiCo New Zealand and the company’s sustainability pledge to use 100% reusable, recyclable, or compostable packaging in its operations by 2025. She says: “As one of the largest snack food manufacturers in the country, ensuring better impact on New Zealand

will be a focus for me and the team. I’m looking forward to focusing on the further development and innovation of PepsiCo in the sustainability space.” PepsiCo ANZ CEO, Kyle Faulconer, says Michelle’s strong customer partnership credentials and consistent results delivery over the past three years have been instrumental in PepsiCo’s success. “I am confident in Michelle‘s ability to lead our Kiwi business and continue to build on the excellent growth and results we are seeing in the New Zealand market.” “Michelle has consistently delivered exceptional results for both our customers and business and we’re excited to see what’s to come with her at the helm of PepsiCo New Zealand,” Faulconer says. Prior to joining PepsiCo, Michelle spent 14 years in various customer facing roles for Unilever and has a wealth of FMCG experience having worked for Cadbury, Schweppes and SPC Ardmona (CCA). Casssettari starts her new role as New Zealand General Manager in April. She replaces Daniel Engeman who is relocating back to Australia.

[ sponsored content ]

CAN YOU RELY ON A FAST CHARGE? By now, you probably have that new phone or tablet you’ve had your eye on. You’re enjoying the clearer camera, the clarity of the screen, the seamless connectivity between that pocket sized supercomputer and your home comfort technologies… so good! But have you also updated the way that you’re refuelling your newfound technology friend? No? Is it taking hours to charge? (boring!) That bigger battery is awesome when it’s full, but it requires a bit more grunt from a charger to get filled back up. We’ve got you – jump over to your closest petrol and convenience outlet and update to WalknTalk FAST CHARGE. You know, the black packaging with the red and white – yep, those amazing value and reliable ones everyone’s using. They look slick, right, but do they really do anything different? Yes, they do! FAST CHARGE works to deliver faster charging to all devices – providing you have a cable, the power source, and of course a device that can take the additional speed of charge. These cables and chargers deliver much higher levels of power so you will want 8

FMCG BUSINESS - APRIL 2022

to be sure to use a certified cable and device like all of those in the WalknTalk FAST CHARGE range. Note of caution: Not all lightning cables are created equal. If you’re buying a lightning cable for your iPhone, iPod or iPad, make sure it is MFi-certified (like WalknTalk). MFi certification stands for Made for iPhone/iPod/iPad. It’s a program that producers (like WalknTalk) of accessories for those devices must go through to have their hardware approved by Apple. It’s a stringent process, but when a product is MFi-certified, you can be sure it’s safe to use. On the flipside, you should avoid purchasing and using lightning cables that are not MFi-certified. (Yes, we’re looking at you, cheap corner store cables). These can cause all sorts of damage to both the cable and your iOS device itself. Well enough about what not to do, now if you want to give a good nutritious power up to your device side kick, grab a WalknTalk FAST CHARGE cable and charger – and enjoy the speed. If you would like more information about Walkntalk Fast Charge products email sales@signaturenz.com or visit www.signaturenz.com.

NEW Blackmores Bio C® + Immune Recovery A premium, multi-action immune recovery formulation from the Blackmores Bio C® range. Each tablet has our trademarked Bio C®, plus scientifically studied Andrographis that work together to support recovery for ills and chills, while supporting immune system defences. The formula is buffered with mineral ascorbates, making it gentler on the stomach, and has added bioflavonoids thought to support the efficacy of vitamin C. Visit: www.blackmoresnz.co.nz

We’ve Grown Our Veggie Range Proper have cultivated two new flavours to expand their vegetable snacking range. Sweets & Beets, a purple haze of deliciousness that combines a seasonal mix of New Zealand grown kumara with the iconic striped Chioggia beets, and a flavour twist to their classic Kumara with peppercorns, onion and a sprinkle of sea salt. propercrisps.co.nz info@propercrisps.co.nz 0800 762 257

Drink Yourself Healthy! Restore’s range of grass fed beef and free range chicken broths and bone broth tonics deliver the tastiest and most beneficial drinking broths for New Zealand consumers, appealing to the growing health and wellness category. restore.co.nz restore@greenlea.co.nz

New Jamaican Jerk BBQ Brisket Burger Angel Bay and celebrity chef Jax Hamilton are excited to bring you the new Jamaican Jerk BBQ Brisket Burger. Available now as limited edition 150g Brisket patties. Everyday deliciousness. https://angelbay.co.nz/ jamaican-jerk-patties/

New BioFarm Blackcurrant Probiotic Yoghurt BioFarm’s new probiotic blackcurrant yoghurt is made with certified organic New Zealand blackcurrants from Viberi. Proudly batch crafted from their home farm, with full traceability. Each serve contains billions of probiotics, nourishing the body. Easy pour, easy re-seal container which is recyclable nationwide. cathy@biofarm.com

FMCG BUSINESS - APRIL 2022

[ fresh produce ]

BEST IN SEASON April brings distinctly cooler temperatures to most parts of the country, with frostier autumn nights ripening crops such as the world-famous kiwifruit. With the massive picking and packing season now underway in Gisborne and the Bay of Plenty, expect to see good quantities of these vitamin-packed furry stars for the rest of the year. An essential part of your fruit display through the winter months, try to stock the three main varieties – SunGold, Green and Sweet Green. Organic kiwifruit is also available in SunGold and Green varieties. Shoppers feeling the change of season will look for root crops such as potatoes, kūmara, carrots, parsnip, swede and yams, which should all be featured this month. Fresh leafy greens, broccoli, Brussels sprouts, cauliflower and kale provide an injection of colour and vitality to displays while New Zealand grown hot house supplies of tomatoes, cucumber and eggplant are plentiful and offer a burst of freshness to autumn meals.

Feijoas

“FEIJOAS PROVIDE A SOURCE OF DIETARY FIBRE, WHICH SUPPORTS DIGESTIVE HEALTH”

FMCG BUSINESS - APRIL 2022

One of the earliest autumn fruit, New Zealand feijoas are now in season with the annual crop in stores from March until June. Commercially grown fruit volumes have risen over the past few years to a level that, barring adverse weather conditions, will ensure consistent supply for the whole season. What to look for: Select plump, firm fruit free of blemishes. Ripe feijoas are aromatic and slightly soft to touch. Storage/handling: Store feijoas in the chiller at 4°C or display at room temperature for 2-3 days maximum. Handle them with care and avoid bruising by stacking by hand. Remove any browning fruit daily. Nutrition: Feijoas provide a source of dietary fibre, which supports digestive health. They are also a good source of vitamin C, which helps support immunity and assists the body with iron absorption from food.

Mushrooms Grown all year round indoors under full climatecontrolled conditions, mushrooms are always in season and always popular. Their texture and taste provide a great alternative for meat and with the growing plant-based trend, their popularity will continue to rise. Main varieties sold in New Zealand include White Button, Portobello, Shiitake and Swiss Browns.

What to look for: With all mushrooms, the fresher the better. They should have good colour without damage, bruising or any signs of deterioration. Where appropriate, gills should be fresh and upright. Storage/handling: Mushrooms are very delicate and need to be handled with extreme care. They require a fast turnover and should be displayed in their original carton to avoid over-handling. Keep them under refrigeration between 2-5°C, covered and away from refrigerator fans. If you are retailing loose mushrooms, provide paper bags for customers. Mushrooms are ethylene sensitive so store separately from ethylene producing fruit and vegetables. Nutrition: Mushrooms obtain all their goodness and nutrients from the rich compost in which they grow. They are a source of vitamin B6 which is vital to help the body unlock energy from protein. They are also a source of selenium, which works with iodine for healthy thyroid function.

Join us on

www.unitedfresh.co.nz

[ cover story ]

TASTE IT. LOVE IT, SPREAD THE WORD.

For over 30 years Tablelands has been a popular spread for Australian families – and Tablelands’ affordable quality plant seed spreads are now available in New Zealand. The Tablelands range has been designed around health, nutrition and value for the whole family. Health experts such as the Heart Foundation have recommended using healthy plant-based spreads with lower saturated fat than butter for many years. Tablelands spreads are made from plant-based seeds like Canola and Sunflower with oil being released via the process of pressing the seeds.

Why are Tablelands spreads healthier? • No artificial flavours & colours • 65% less saturated fat than butter • With omega 3 – essential for good health • Suitable for vegetarians • Made from plant seeds The range consists of five great tasting everyday spreads suitable for the whole family.

• T ablelands Buttery Dairy Free - Suitable for lactose intolerance, vegans and vegetarians and has a rich and natural butter flavour ideal for all the family. • T ablelands Olive Oil Spread 500g Tablelands combines the benefits of olive and canola oils to provide a great tasting and versatile spread for use on crusty bread, hot vegetables, salads and cooking. With an authentic mild olive taste, it contains 65% less saturated fat than butter and has no artificial colours or flavours. • T ablelands Reduce Cholesterol with plant sterols to assist in reducing cholesterol. A great value option for customers to reduce their cholesterol absorption. To order the range contact Anna Rutherford, National Business Manager, Brand Champs at anna@brandchamps. co.nz Phone: 0800-336-676 For more information visit https://tablelandsspreads.co.nz FMCG BUSINESS - APRIL 2022

WINTER WELLNESS Although it’s been around for generations, bone broth is enjoying a resurgence in popularity as consumers look to their diet for sustainable health and wellness. Bone broth is essentially protein and water. The protein is derived from animal bones cooked for long periods of time to break down the material that forms the skeleton (bones, cartilage, ligaments, tendons, and connective tissue). That material, which includes amino acids and the compounds used to form the extracellular matrix, when consumed, is then reformulated. Bone broth can be thought of as a dose of building blocks that the body then uses to rebuild itself. Although there is very little scientific research linking bone broth to specific health outcomes, much is known about the usefulness of amino acids. Amino acids are the component parts of proteins, and proteins are essential for life. The most abundant protein in the body is collagen. Collagen is found throughout the body in hair, skin, nails, muscles, bones, tendons, ligaments, organs, blood vessels, the intestinal lining … the list goes on. Glycine, an amino acid, has been linked to repair of the intestinal lining, which is probably why bone broth has become associated with gut health. Other amino acids found in bone broth are known to support the immune system. Launched in 2021, Restore bone broth includes both chicken and beef varieties and is available in both plain versions and “tonics”. The tonics have been blended with herbs, spices, and other ingredients to create a flavourful beverage. The ingredients, such as manuka honey, lemon, ginger, and turmeric, have been carefully selected for their own beneficial properties.

“AMINO ACIDS FOUND IN BONE BROTH ARE KNOWN TO SUPPORT THE IMMUNE SYSTEM”

FMCG BUSINESS - APRIL 2022

[ feature ]

Soothing remedies from Comvita In a small New Zealand town in the early 1970’s, two men formed a special partnership. Claude Stratford and Alan Boughen established Comvita in 1974 with a mission to create quality health products as close to their natural state as possible. While honing their beekeeping skills they began making natural products with the honey they collected from native forests nearby. They sold their products locally and ‘Comvita’ quickly became known for the quality and purity of its products, and for its ethics. Claude and Alan’s beekeeping legacy has endured and Comvita is now New Zealand’s largest producer of genuine UMF Manuka Honey, operating over 27,000 hives in New Zealand. It is a globally recognised brand. “Today, we continue this passion for being better, working at the forefront of science to deepen our understanding of the hive’s healing power,” says the Comvita team. “We source the highest quality natural ingredients from remote corners of New Zealand and use leading science to verify their purity and potency. Better Mānuka honey for better health - that’s our sweet spot. “We’re for nature - we believe that nature has the power to heal, protect and restore both people and planet. We were the first New Zealand Mānuka honey company to use scientific knowhow to reveal nature’s intelligence and deepen our understanding of the healing power of the hive. We’re fanatical about creating natural, premium bee products of the purest and highest quality.

“We’re also for kaitiakitanga. Just as the Mānuka tree is a natural kaitiaki (guardian) of the land, so are we. We do everything we can to protect and restore our environment for future generations (ten million trees planted and growing!). We’re for a better world - That’s never changed since we began in 1974. We’re helping the communities we touch around the globe, saving bees, saving animals and giving back 1% of our profits, for the better.” In New Zealand, Comvita offers Manuka Honey and natural wellness products under the Comvita brand, including Manuka Honey Lozenges and Olive Leaf Extract. Comvita’s recent product launches include new Soothing Kids Pops, which come in a 15pk of three different lollipop flavours - ranged in Countdown Supermarkets. “Comvita Kids lollipops have grown 176% in the MAT to February 2022 since launching the new product,” says Dylan Hill-Lewis – Comvita’s Head of Sales and Marketing ANZ. He adds: “With increased demand for natural wellbeing products our Olive Leaf Extract is perfectly positioned to fulfil emerging consumers needs in the Natural Immune Health category. “We are seeing an increase in demand for wellness products with the emerging outbreaks and anticipated increases in Covid cases. In particular the need for products that help with the relief of symptoms and also in the natural immune categories.” For orders contact Wilson’s Consumer products on 0800651044 or email info@wilson.co.nz

“WE SOURCE THE HIGHEST QUALITY NATURAL INGREDIENTS FROM REMOTE CORNERS OF NEW ZEALAND”

FMCG BUSINESS - APRIL 2022

SOUP SEASON What’s new for winter 2022? With cold, rainy weather approaching, shoppers are increasingly reaching for heartwarming soups. To find out what’s new and trending in stores, FMCG Business talked to the Countdown team and local suppliers. “Every year we see chilled soup grow in popularity, and our customers are loving the fresh and healthy options available,” said a Countdown spokesperson. “Many brands are experimenting with different flavour profiles and keeping up with customer trends. This winter we have some exciting new products launching so keep an eye out in our chillers!”

Pitango’s new soup flavour - selected by the NZ public Pitango, made famous for their fresh and home-made soups and meals, will be launching a new soup flavour this winter season, as voted by New Zealanders in a recent online poll. The Pitango Thai Chicken Noodle soup won the top spot receiving 41% of the total votes and will now be the Pitango new Soup Of The Season for the upcoming cooler months. “Our customers are our guiding influence when it comes to creating a new variant or flavour for Pitango,” comments Mary Boulton, Commercial Director for Pitango New Zealand. “When we were looking for inspiration for our new Soup of the Season, we, of course, went to our customers asking for their ideas for a new Pitango soup flavour.” Pitango received around 30 unique flavour ideas from consumers across the country, with Thai Chicken Noodle Soup the clear favourite. Pitango ran their survey alongside a competition allowing participants to win a Pitango Kitchen Pack valued at over $200. Boulton explains: “The Pitango Free Range Thai Chicken Noodle Soup is made fresh and packed fresh with no added preservatives and no added sugar. With NZ free-range chicken pieces, packed full of vegetables and noodles, simmered in coconut cream and blended with Thai green curry paste, it is guaranteed to be a favourite soup this season! 14

FMCG BUSINESS - APRIL 2022

[ category insights ] “Heated in as little as three minutes, the Pitango Thai Chicken Noodle Soup is the perfect selection for lunch or dinner, just garnish with some fresh coriander and sliced red chili for that final touch.” The Pitango Free Range Thai Chicken Noodle Soup is 99% fat-free, contains 2.5 servings of vegetables, and only 122 calories per serve. Available in a 500g pouch (RRP $5.00) from the chilled section at Countdown, New World, and Pak’nSave stores nationally from early May. For more information contact info@pitango.co.nz or call 09 2604110.

King Traditional Soup reveals a new recipe King soup has been cooking in Kiwi kitchens for more than 60 years and it is still proudly made and grown in New Zealand. “Being economical, comforting, and versatile it is easy to see why Kiwis love King traditional soup mix,” says Susan Harvey, Marketing and Business Development Manager. “While many customers enjoy the mix as a soup, adding water or their own vegetables or meat, it is also a popular hearty base for casseroles and slow cooked meals. Among the most recent launches in the range is King Pumpkin & Turmeric soup. Harvey says: “Customers love this new flavour in the King soup range. Pumpkin soup is one of the key variant flavours in the soup category and is now available in the King soup range with our new Pumpkin & Turmeric soup mix. “Kiwis just love pumpkin and King Pumpkin & Turmeric Soup has the classic pumpkin taste that Kiwis love with a touch of Turmeric. Turmeric is well known for its health benefits and its golden yellow colour. Harvey adds: “Due to supply constraints during 2021, we were unable to make our Pea & Ham variant, much to the disappointment of many of our loyal customers! As our fourth bestselling flavour, we had to come up with a solution for our customers. This year we have come up with a new recipe of our Pea & Ham soup, using a high-quality ham flavour. The new Pea & Ham flavoured soup variant is available now. “King soup is very economical and makes over 2 litres – leftovers are convenient for meals the following day or for the freezer. This year with inflation driving costs up, there is more pressure to look for affordable meal solutions. We have seen increased demand over the Summer period and expect that this will continue into Winter.

“Wet weather is a trigger point for soup purchases. Cool weather helps, but the optimum is wet and cool weather. “King soup is different from other soups. Making King soup takes around 1½ hours and that time is seen as entertainment during cold wet weather when it’s hard to get outside. During this time wonderful cooking smells fill the house warmth and wonderful smells, bringing back nostalgic memories. This is the soup that mum and nana made. “King soup can be made with just water as it has all the flavour included and is more convenient than plain vegetable grain mixes. Vegetables can also be added to King soup. It’s a great way to use up vegetables that are close to being past their best and an ideal way to get more vegetables into your diet – which is perfect for boosting vitamin intake during winter,” says Harvey. Wilson Consumer Products markets King Traditional Soup in New Zealand. Ed Dabrowski, Business Manager – WFL Brands edwardd@wilson.co.nz , www.wilson.co.nz

“KING PUMPKIN & TURMERIC SOUP HAS THE CLASSIC PUMPKIN TASTE THAT KIWIS LOVE” SUSAN HARVEY, MARKETING AND BUSINESS DEVELOPMENT MANAGER

SOUPS Dollars

Dollars Growth % YA

Total Soups

$81,650,540

-0.5

Chilled Soup

$21,292,856

10.5

Instant Soup

$17,462,460

-1.6

Ready To Serve

$21,144,494

-3.4

Packet Soup

$16,324,404

-4.6

$5,426,326

-9.5

Other

Source : IRI Market Edge Grocery MAT to 27/02/22 (Selected segments)

The FMCG Business team endeavours to produce a monthly snapshot of category news and highlights, based on information from participating clients, plus a table of the freshest data available at time of print. If you wish to contribute news for upcoming category reports, please contact trubanowski@intermedianz.co.nz

FMCG BUSINESS - APRIL 2022

Dairy cows at BioFarm

DAIRY TRENDS Entries in the NZ Champions of Cheese Awards 2022 were up by over 20% to 380 products this year and the quality of New Zealand specialty cheese continues to shine at these awards. New Zealand cheese companies are making outstanding cheddar, say the awards organisers, who expect to see a few medals in this category. Fresh Italian-style cheeses are also a strong category again with gold medals expected for Burrata, Bocconcini, Mozzarella and Ricotta. Greek-Cypriot style cheese is also a strong performing category with Haloumi and Feta growth categories in their own right. The Dutch cheese category with Gouda and Edam had an increase in medals this year and the European-style cheese category was a star performer with seven golds across Cheshire, Parmesan and Maasdam, say the awards organisers. Fresh flavoured cheeses are also a growth category with styles such as Brie and Havarti. Look out for an innovative new cheese called Belle Chevre Creamery Raspberry Bonbons! You can see the full list of medal winners over on https://nzsca.org. nz/winners/ and the NZ Champions of Cheese Trophy winners will be named at the Awards Gala Dinner on 30 June 2022. Meanwhile, the Countdown team reports that A2 milk continues to gain in popularity, growing around 25% in the last year. “Premium flavoured milk is also growing with brands such as Lewis Road and Puhoi proving hugely popular with our customers,” says a Countdown spokesperson.

New yoghurt from BioFarm Founded by Cathy and Jamie Tait-Jamieson in 1986, BioFarm’s iconic range of delicious organic pouring yoghurts are still proudly made on the family farm in Palmerston North. Innovators of grass to glass sustainable agriculture, BioFarm and the family behind it have always striven to offer conscientious shoppers a truly natural food that nourishes your body while preserving and enhancing the wellbeing of the animals and whenua that provide it. BioFarm yoghurt was the first certified organic product on supermarket shelves and over the almost 36 years has become the staple breakfast and smoothie addition for customers all year round. 2022 sees the introduction of BioFarm’s newest flavour, Blackcurrant made with certified organic New Zealand blackcurrants from Viberi. 16

FMCG BUSINESS - APRIL 2022

This will become available to the trade over the coming months. As with all BioFarm yoghurts, only NZ ingredients are used and they are proud to be in partnership with Kiwi organic growers of honey, apples and now blackcurrants. Not many products available to customers can boast such a short ingredients list, nor that their supply of dairy ingredients is single source, where there are no bobby calves, no use of urea or sprays, where pasture species and stock types are diverse (sheep and goats as well as cows) and where mothers and their calves aren’t secluded from each other. Among the other boxes to tick are, easy pour, easy re-seal containers which are recyclable nationwide, billions of probiotics per serving, and batch crafted on farm with full traceability. For enquiries contact Cathy Tait-Jamieson, Owner/Operator BioFarm Products and The Organic Farming Co Ltd, email: cathy@biofarm.com

[ category insights ]

EasiYo – Dairy Range

New Isola Bio plant-based barista milks

EasiYo have just launched new flavours into their range, including Greek Style Mānuka Honey, 99% Fat Free Triple Berry and two Dessert Style flavours – Chocolate Swirl and Vanilla Custard. “The Dessert Style range offers luxurious flavours paired with creamy and delicious yogurt,” says Innovation Manager, Tippany Hopping. The EasiYo dairy range, which makes 1kg of fresh yogurt and is super easy to make at home, is vegetarian, gluten free and available in a delicious range of flavours. EasiYo Yogurts contain millions of live yogurt cultures per serve, with no preservatives or artificial flavours. For orders contact Jayden Kilpatrick from KML jayden.kilpatrick@kml.net.nz

The new Isola Bio plant-based barista milks can be steamed and stretched for a completely organic, and professional coffee experience, at home or in a cafe - tested and approved by New Zealand baristas. With New Zealand’s per capita coffee consumption ranking among the top 20 in the world, more and more shoppers are looking for a completely organic coffee experience. Chantal Organics is the exclusive distributor in NZ for Isola Bio - a sustainably conscious company and certified B-Corp, offering a range of premium organic plant-based milks, made with a clean and simple list of organic and 100% natural ingredients (RRP $4.99). For more information contact 0800 254 766 or sales@chantal.co.nz

EasiYo - Plant Based Range EasiYo have developed a range of vegan friendly plant based yogurt bases. EasiYo Plant Based yogurts were developed from consumer demand and are perfect for those looking for an alternative to traditional yogurt. The vegan friendly plant based base makes 500g of yogurt with millions of live vegan yogurt cultures per serve. Coconut and soy come together to create a smooth, creamy and delicious plant based yogurt for you to make at home. With two delicious flavours to choose from (Tropical and Original), you can make homemade vegan friendly yogurt whenever you need it. It is super easy to make and deliciously and smooth. Make it using the EasiYo 500g Yogurt Maker, or two sachets together in the 1kg Yogurt Maker. EasiYo plant based yogurts are gluten free, contain probiotics and prebiotic fibre and no artificial colours or flavours. For orders contact Jayden Kilpatrick from KML jayden.kilpatrick@kml.net.nz

DAIRY Dollars Total Dairy

Dollars Growth % YA

$1,794,269,694

2.7

Milk & Cream

$629,954,781

4.0

Cheese

$601,913,876

1.9

Yoghurt & Dairy Desserts

$276,368,876

6.1

Dairy Spreads & Fats

$264,115,175

-2.4

$21,916,986

11.8

Chilled Dairy Dips

Source : IRI Market Edge Grocery MAT to 27/02/22 (Selected segments)

FMCG BUSINESS - APRIL 2022

AISLE SPY Haircare category news and insights. What’s new and driving sales in the haircare aisles in New Zealand supermarkets? The Countdown team told FMCG Business: “Shampoo Bars are growing in popularity and more suppliers are moving into this space. The next ones to hit our shelves will be Ethique Curiosity Shampoo and Garnier Hair Food Bar - both landing in May.” What else is popular at Countdown this year? “Curls, Curls, Curls many brands are looking to build their curl care range, which is globally one of the fastest growing segments,” said the Countdown team. “Also, Dry Shampoo, while not ‘new’ news, is a category that continues to grow. Especially with the work from home trend meaning less wash and go versus dry shampoo. We have a premium range of dry shampoo called OGX also launching in May,” they reveal.

Glow Lab Haircare “Glow Lab Haircare is performing well ahead of the natural haircare segment, while delivering a distinct point of difference to supermarkets,” says Senior Brand Manager Paige Mortleman. “The four natural shampoo variants are backed by impressive ingredient claims, boosted with active ingredients usually found in salon brands, such as Keratin, resulting in softer, healthier and smoother hair. Consumers can say no to harsh chemicals, and still have a product that delivers results, such as reducing breakage by up to 55%* (*FK Restore™ Functional Keratin). Mortleman explains: “Consumers are placing importance on looking after their hair in the pursuit of healthy, shiny hair, and are more 18

FMCG BUSINESS - APRIL 2022

informed than ever on ingredients to avoid. Haircare is starting to mirror skincare, with the use of skincare-like ingredients and demand for efficacy. The Glow Lab natural haircare range delivers just that – natural haircare that works.” Dr. Gillian Worth, Head Chemist at Glow Lab says, “the research highlighted there is a level of compromise associated with natural haircare

[ category insights ]

“OUR NATURAL FORMULATIONS ARE SUPERCHARGED WITH SCIENTIFICALLY EFFECTIVE INGREDIENTS” DR. GILLIAN WORTH, HEAD CHEMIST AT GLOW LAB products, we set out to change those expectations with a new improved shampoo formula. Our natural formulations are supercharged with scientifically effective ingredients at claimable levels, while still free from silicones, sulphates and parabens, making them not only good for your hair and delicate scalp area but also better for the environment.” Glow Lab provides an extensive range across all key hair needs, including small and large pack sizes (300ml and 600ml) plus treatments and hair bars! “A key highlight is the exceptional growth in Glow Lab’s 600ml range at +69% and Hair Bars at +28% latest quarter (IRI Latest Qtr 6/2/22),” says Mortleman. For orders contact 0800 GLOW LAB (4569 522) getyourglow@glowlab.co.nz

New lines from John Frieda Over four decades ago, the John Frieda brand started with the opening of a salon on New Cavendish Street, London. Today, the vision of the brand reflects that salon heritage: products that target specific problems and transform them. For salon-calibre results you can see and feel. “We learnt that to get salon-calibre results accessible to all, the solution has to be tailored to customers’

HAIRCARE Dollars Total Haircare

Dollars Growth % YA

$152,463,542

-0.9

Shampoos

$57,615,811

1.5

Conditioners

$45,180,138

-0.1

Hair Colourants

$26,799,494

-7.1

Styling

$16,200,561

-1.5

Hair Accessories Head Lice Treatments

$5,675,375

3.9

$992,163

-7.9

Source : IRI Market Edge Grocery MAT to 27/02/22 (Selected segments)

specific needs,” explains Senior Brand Manager at Wilson Consumer Products Vanessa Lewis. Today John Frieda is available in over 250 NZ supermarkets nationwide and excels in the frizz and blonde toning categories with star ranges Frizz Ease and Violet Crush. Lewis says: “The range is constantly re-inventing itself with exciting new lines, including trend products to excite during 2022. Its packaging is truly premium and is ever evolving. With an edgy new look and innovative new products, John Frieda, as an established heritage brand is attracting a vibrant young customer.” In our new, dislocated Covid world, consumers have learnt to deal with hair concerns at home using salonquality products available to them locally at retail. John Frieda has shown how easy it is to neutralise brassy blonde tones, keep wayward hair sleek and kink-free and how to control frustrating frizz. Lewis states that even though our lives may not be as office-, party- or event-centric as a few years ago, we still want gorgeous, healthy and groomed hair with perfect, natural looking colour. “Once a woman finds her perfect solution, she’s loyal to brand and store, she is every store and brand’s perfect customer.” Contact https://www.wilson.co.nz/

New Zealand is home to more than 4.3 million pets.

PRECIOUS PETS Many New Zealanders have spent more time at home during the Covid pandemic and have turned to pet ownership for comfort and companionship. Did you know that New Zealand is home to more than 4.3 million pets and more than 60% of our households have pets? Most pets are pampered and treated as family members here and, just like humans, some are now being offered vegetarian, grain-free, raw and organic diets. FMCG Business talked to the Countdown team and local suppliers, to find out what’s new in pet food and pet care right now. The Countdown team observes that pet parents are increasingly conscious of their pet’s health and getting creative with how they feed them. “We are seeing lots of new flavours hit the shelves and, at the same time a growing number of products available without any artificial ingredients,” says a Countdown spokesperson. 20

FMCG BUSINESS - APRIL 2022

“Recent lockdown’s have grown our treats range exponentially with ‘hoomans’ spending more time with their furry friends. Larger pack sizes and treats that keep pets busy while their owners are working from home are becoming very popular, and we’re also trialling a range of loose dog treats in bulk bins in some of our stores.”

New Mutt Butter treats for dogs Mutt Butter was developed to bring happiness and health to dogs. Dogs delight in peanuts and peanut butter, which are natural, tasty and good for them. “We are a local, made in New Zealand brand – made by Kiwis for the dogs that Kiwis love,” says Jono Wood of Natures Foods. “Our products are all made in New Zealand in human grade factories with 100% natural ingredients. We aim to use as few ingredients as possible with no preservatives or additives. “Mutt Butter Peanut Butter is ideal for lick pads, enrichment treats, chew toys and training rewards.

[ category insights ]

“It’s super fun, dogs love it and it’s so versatile for your pet – for hiding medicine, make frozen treats or use in baking your home-made dog treats. “Our peanut butter contains roasted peanuts, no preservatives, no additives and is high in protein (25%), with good oils for your dog’s skin and coat,” explains Wood. “Our cookie treats are made with our Peanut Butter, our original cookies have a very clean label, only four ingredients and no preservatives. The dog cookies are ideal as a training treat and reward, and the new pumpkin & chia variant is even more

“OUR PRODUCTS ARE ALL MADE IN NEW ZEALAND IN HUMAN GRADE FACTORIES WITH 100% NATURAL INGREDIENTS.” JONO WOOD OF NATURES FOODS functional, formulated for digestion support. Unfortunately, dogs can’t eat chocolate, but our carob coated peanuts are a perfect treat your dog can enjoy.” “Join our community on social media. You can follow us on Instagram, our feed is just full of cuteness, fun and surprises,” says Wood. Follow us @muttbutternz To contact Mutt Butter ph 0800 688 2767 email: info@muttbutter.co.nz For supermarket inquiries or orders, please contact: College Hill Agencies, Hamish Spear (Key Account Manager) ph +64 27 222 4883 email: hamish@cha.co.nz or visit cha.co.nz PET Dollars

Dollars Growth % YA

Total Pet

$593,521,578

10.4

Catfood

$250,597,396

12.2

Pet Accessories

$113,708,448

11.3

Dogfood

$109,636,043

6.8

Chilled Pet

$104,513,339

10.1

$15,066,351

4.4

Bird/Rodent Food

Source : IRI Market Edge Grocery MAT to 27/02/22 (Selected segments)

[ innovation ]

NATURAL, NUTRIENT RICH AND MADE IN NZ This month’s finalist for the FMCG Product of the Year Award 2022 is a locally made health and wellness product with natural, immune-boosting ingredients. Launched in 2021, Restore bone broth includes both chicken and beef varieties and is available in both plain versions and “tonics”. The tonics have been blended with herbs, spices, and other ingredients to create a flavourful beverage. The ingredients, such as manuka honey, lemon, ginger, and turmeric, have been carefully selected for their own beneficial properties. The producers say: “Drink yourself healthy with Restore bone broth tonics! Coming soon to a grocery store near you, the Restore tonic range is the perfect healthy replacement to your afternoon tea or coffee. Bone broth is widely regarded as having a wealth of beneficial health properties and is a good source of protein and collagen. “At Restore Bone Broth, we understand that there is a desire to consume healthy foods that are free from chemicals and preservatives. This is why we have created a clean, natural, flavourrich broth that is packed full of readily absorbable nutrients to support the health of your gut and in turn the health of your entire body by boosting your immune system and reducing inflammation. “Our 24-to-48-hour slow simmer process creates a nutrient rich broth by extracting all the goodness from the bones including amino acids, collagen and glutamine that have amazing power to transform your health. All of our broths are gluten free, hormone and antibiotic free, keto and/or paleo friendly, and halal.”

UCT OF THE OD YE PR A

Do you have a Hero product that stands out from the crowd?

•

•F M C

FMCG BUSINESS PRODUCT OF THE YEAR If there’s a tasty tastebud teaser, NPD rockstar, or best seller

‘Product Of The Year’ - we’d love to hear from you!

PRODUCT OF THE YEAR

•F M C

•

in your portfolio that deserves to be crowned We’ll showcase some of the finalists in upcoming issues and reveal the FMCG Business Product of the Year later in 2022.

UCT OF THE OD YE PR A

To find out more on how to enter please email: trubanowski@intermedianz.co.nz 22

FMCG BUSINESS - APRIL 2022

[ good business ]

COMVITA PARTNERS WITH SAVE THE KIWI Comvita has partnered with conservation organization Save the Kiwi, in a significant sponsorship agreement that will ultimately provide a safer habitat for the iconic birds across the North Island. Starting with Makino Station, home to one of Comvita’s mānuka forests in the lush Manawatu-Whanganui region where Kiwi already reside, the ambition is that over time Comvita’s properties will become Kiwi-safe habitats. The partnership will see the implementation of predator management plans on land managed by Comvita that will enhance biodiversity and help the endangered population and other native flora and fauna thrive. Save the Kiwi Executive Director Michelle Impey Save the Kiwi Executive Director Michelle Impey says partnering with Comvita is a new and exciting approach for Kiwi conservation. “Effective predator control is central to successful Kiwi conservation, and creating sanctuaries that are free of stoats, ferrets, and other predators is extremely intensive work.” “Comvita owns a number of properties, many of which are already home to Kiwi, and it’s so exciting to work alongside and educate them about how we can help the taonga species thrive in the future,” says Impey. Comvita will provide annual support for these initiatives, including the purchasing and oversight of traps at its properties. In addition, it will provide opportunities for its staff to personally connect with Save the Kiwi as part of its focus on supporting communities and nature in need a key cornerstone of Comvita’s Harmony Plan. The Harmony Plan is Comvita’s contribution towards creating a planet in which bees and people thrive together, with sustainability goals to restore the balance in nature, address climate change, and support

communities. The company is committing 1% of gross earnings to Harmony partnerships that hold a natural connection to its purpose, and work to create connections between people and the natural world. Comvita has already committed to $151,000 towards Harmony partnerships in the first half of 2022. Comvita has also partnered with For the Love of Bees, Saving the Wild and more locally, supported the roll-out of Wasp Wipeout in Hawke’s Bay as part of its Harmony Plan. Comvita Chief Executive, David Banfield, describes how the partnership takes meaningful steps towards fulfilling Comvita’s responsibility as a business. “Everything we do at Comvita is guided by our founding principle of Kaitiakitanga, or guardianship and protection over nature, and this underpins our work to create these sanctuaries that will, in time, enable Kiwi to flourish,” says Banfield. “What’s more, Save the Kiwi brings balance to our other Harmony projects, and we aim to keep building our Harmony partnerships with these sort of conservation efforts and communities at its core.” “We believe we have a contribution to make, and that by undertaking these initiatives we are living our values and fulfilling the steps needed to be the kind of business that we want to be,” he concludes.

Did you know?

One of Comvita’s mānuka forests

Comvita was founded in 1974, with a purpose to heal and protect the world through the natural power of the hive. With a team of 500+ people globally, united with more than 1.6 billion bees, they are the global market leader in Mānuka honey and bee consumer goods. Comvita has pledged to be carbon neutral by 2025 and carbon positive by 2030 and is planting more than two million native trees every year. Comvita has operations in Australia, China and North America. FMCG BUSINESS - APRIL 2022

[ good business ]

NEW ZEALAND GOVERNMENT PLANS TO TRANSFORM RECYCLING The Government is taking steps to improve recycling The second proposal is for a container return at home, and on the go, and is inviting New scheme for beverages, to incentivise people to Zealanders to have their say. return empty drink containers in exchange for a small “Every year New Zealand generates more than 17 refundable deposit. A deposit of 20 cents is proposed. million tonnes of waste and sends almost 13 million “More than two billion drinks are sold every year tonnes of that to landfill,” Environment Minister in New Zealand. Less than half of these containers David Parker said. are recycled, meaning that over a billion containers “We currently have inadequate rubbish collection end up as litter, are stockpiled, or sent to landfills and recycling systems. As a result, our recycling every year. rates are low compared to other countries with “With a container return scheme in place, we can better systems, and we have too much litter in increase our recycling rate for beverage containers to Minister for the Environment David Parker our environment. between 85% and 90%. “I am asking New Zealanders to have their say “This will also result in increased supply of on our “Transforming Recycling” proposal to improve the way we recovered materials for our onshore recycling systems and container recycle and deal with our rubbish. The proposals will help reduce litter, manufacturers,” Parker said. emissions and pressure on our environment. “Consistent with most overseas schemes, containers of fresh dairy “It’s estimated that nationally only 28% of materials are recycled and milk would be exempt from the scheme. Unlike most drink containers, the rest goes to landfill. By contrast, Germany, Austria and Wales have those for fresh milk already achieve very high recovery rates through the highest recycling rates in the world, with over 50% of all waste kerbside recycling collections. However we will continue to investigate being recycled. how recovery can be improved further.” “We are taking action that will make a real difference and want Kiwis The third part of the consultation focuses on diverting business food to have their say,” Parker said. waste from landfill to reduce their carbon footprint. The food scraps can There are three connected proposals covered by the consultation. then be used to improve our soil or feed animals. The first, looks at improvements to our household kerbside recycling “New Zealand businesses generate 25% of all food waste that goes system, including access to food scrap collections. to landfill. Along with reducing greenhouse gas emissions, separating “We’re going to make it simpler and easier for people to recycle out food scraps can help businesses identify ways to reduce food waste right. Standardising kerbside recycling will reduce confusion and help and save money. businesses design packaging that is recyclable anywhere in New Zealand. “By 2030, we want all businesses and households to separate food “Food scraps make up more than a third of a typical household’s rubbish scraps from their rubbish,” Parker said. each week. When sent to landfill, they create greenhouse gas emissions. Public feedback will help shape the final reform proposals. “Providing access to household kerbside food scraps collections is a “We want a future where everyone reduces waste, reuses, and simple step to reduce emissions and return nutrients to the soil,” Parker said. recycles. We know New Zealanders want to do the right thing. With these proposals, we’re putting the right foundations in place to bring our recycling systems up to global standards,” Parker said. Consultation will run until Sunday, 8 May. The consultation document and online submission forms will be available on the Ministry for the Environment’s website https://environment. govt.nz/publications/transforming-recyclingconsultation-document/

“NEW ZEALAND BUSINESSES GENERATE 25% OF ALL FOOD WASTE THAT GOES TO LANDFILL.” 24

FMCG BUSINESS - APRIL 2022

[ good business ]

SOFT PLASTIC RECYCLING RETURNS TO DUNEDIN Dunedin residents can recycle their soft plastic manufacturing business with around 30 employees packaging again at eight participating Countdown, and their families living in Dunedin, it’s important for us New World and The Warehouse stores across that they can recycle their soft plastic packaging. Using Dunedin and Mosgiel. our existing transport provider network to move the The distinctive recycling bins have returned to recycled materials means we can help restart collections Countdown stores at South Dunedin, Anderson without adding additional vehicles to our roads.” Bay, Dunedin Central and Mosgiel; New World Michael Anderson, Head of Sustainability at stores at City Centre, Gardens and Mosgiel; and The Goodman Fielder adds: “We’re proud to be working Warehouse South Dunedin. closely with the scheme to transport the soft plastics Malcolm Everts, Chair of the Soft Plastic Recycling ‘bales’ back to Auckland in spare capacity on existing Scheme says: “It’s fantastic to bring soft plastic routes, which minimises the transport carbon footprint Mayor of Dunedin Aaron Hawkins with recycling back to Dunedin after a three-year hiatus. required. Since February 2021 we have transported New World Gardens owner operator Craig Broderick. It has been a true collaborative effort involving scheme over 55 Tonnes of soft plastic from Christchurch to members and the local community, to put in place a be turned into posts at Future Post. To put that in collection and backhauling service from Dunedin, via Christchurch, perspective, it's equivalent to around 85 million bags or wrappers.” back to Future Post in Auckland. The Soft Plastic Recycling Scheme has over 160 members representing “Cargill will collect the bags from stores; Waste Management will around 78% of post-consumer soft plastic materials consumed by the bale and palletise the materials; Cottonsoft will backhaul the bales to food and grocery sector annually. The scheme pays for the costs of Goodman Fielder in Christchurch, who will transport the bales via their collection through to processing. This recycling service is 100% funded network to Auckland – a real example of teamwork.” by industry members of the voluntary product stewardship scheme and Kim Calvert, Country Manager Cottonsoft comments: “As a local there are close to 200 drop off points now in New Zealand.

[ sponsored content ]

EXPERIENCE PURE DELICIOUSNESS WITH SILVER FERN FARMS PURE* BURGERS Silver Fern Farms is proud to introduce new premium PURE* Burgers and Sliders – now available in the freezer. Providing customers with a purely convenient offering that doesn’t compromise on quality. “Building on our successful launch of Honest Burgers, we’re excited to bring premium products to the freezer aisle, enabling customers to create pure deliciousness at home,” says Brenda Galbraith, Marketing Manager USA/NZ. “The name says it all. Our PURE Burgers are 97 – 99% grass-fed red meat, a sprinkle of salt and pepper and a touch of collagen to enhance the cooking experience and tenderness. No fillers, no artificial ingredients – just pure deliciousness. They’re also gluten-free and keto friendly.” “PURE* Burgers are made from expertly selected cuts of beef, lamb and venison that offer a rich depth of flavour and a juicy texture, for the best eating experience.” There are five products in the range: • 97% Beef Burgers with Brisket • 97% Beef Burgers with Short Rib • 99% Lamb Burgers with Rump • 97% Venison & Beef Burgers with Venison Short Rib • 97% Beef Sliders with Brisket “PURE* Burgers come in family-sized packs for ultimate convenience – perfect to put in the freezer for those “just in case” moments,” says Galbraith.

For every pack purchased, Silver Fern Farms will donate $1 to Meat the Need, a charity that helps New Zealand farmers feed Kiwi families in need, supplying much needed meat to City Missions and food banks. Customers have even more reason to enjoy PURE* Burgers, knowing they’re helping provide red meat nutrition to those that need it most. For more information, contact Silver Fern Farms Key Account Manager – NZ Retail, John Saunders [0274923624]. *PURE Burgers are 97% red meat, seasoned with salt and pepper, with added collagen.

FMCG BUSINESS - APRIL 2022

LEADING WELL Strategies for resilience and wellbeing during times of uncertainty

Fleur Heazlewood, author of Resilience Recipes: Making Space for Wellbeing that Works, is the founder of the Blueberry Institute and a leadership expert in healthy, high performance. She works with organisations to build future-fit leaders and strong teams to thrive through challenge, uncertainty, and change. For information on how her programs can help visit www.blueberryinstitute.com 26

FMCG BUSINESS - APRIL 2022

People that are well, do well. But we are doing a lot of doing, and not enough well. These last few years have seen us digging deep to deal with unrelenting change – floods, pandemic restrictions, work changes, home schooling – all putting pressure on our wellbeing and productivity. Which has in turn brought additional stress and uncertainty for people, and the potential for burn-out for leaders and managers who are trying to balance it all. Then on top of that, in a work context we still operate with the industrial age belief that if we work hard and achieve our targets, we then deserve wellbeing and happiness. But this equation is wrong and can lead to burnout. Over 10-years of research shows that if we prioritise our health, wellbeing, and happiness first – our productivity, problem solving, innovation, creativity and achievement increases by up to 30%.

Wired and over-tired Yet most of the leaders I work with are caught up in the busyness treadmill, continuously rushed for time, and not getting through their never-ending to-do-lists.

And with change and disruption happening faster, more frequently and more dramatically than we are used to, it can be literally too hard to see the wood for the trees. With our bodies in a constant state of fight or flight our brains are prioritising survival, and continuously pumping out adrenalin and cortisol. This is at the expense of our cognitive processing abilities. To boost our survival resources, the brain deprioritises other important functions like perspective-taking, problem solving, and rest. And current mental health trends show that more of us are struggling and not doing so well.

Stress plays out differently for different people Stress and anxiety affect different people differently – some people will crave order, over plan to exert control and find comfort in rules. Other people will rebel, act out or lash out. Some people will comfort eat while other people will stop eating. Some people will struggle with sleep, others will sleep more. It is important to take the time to identify your

[ leadership ] own stress triggers and behavioural patterns when under pressure. Also don’t assume that others will think, feel, and react the same way as you do to uncertainty, challenge, and change. Once we understand people’s feelings, we can then match our leadership and communications strategy to meet them with where they need us to be to be able to move forward.

There is no one size fits all solution to wellbeing, but there is a wellbeing solution for all Many of us hope for a one-size fits all approach to wellbeing and lose motivation when something doesn’t work for us or our team members. Which doesn’t make sense. Each one of us is unique, so our wellbeing definitions and resilience needs are unique too. No two people have the exact same values, beliefs, life circumstances, priorities, and dreams. Wellbeing to a first-time parent with a brand-new baby will most likely involve more sleep and help around the house. Wellbeing for a graduate starting their first full time job will find the mastery of work skills and fitting in to social networks more important. So, our starting point is as simple as asking each of our team members how they are and what they care about. In your one-on-one catch ups, instead of starting by reviewing their tasks in progress, try taking the first 5-minutes to ask them how they are? And what is important to their wellbeing? What does wellbeing mean to you? What is working well for your wellbeing at work? What are your stressors? What helps when you are experiencing pressure? What support would you like for your wellbeing? The good news is that research shows that the simple act of asking and talking about wellbeing, is a wellbeing boost in its own right! And supporting your team members’ wellbeing is more straightforward than you may think. Providing opportunities for autonomy, flexibility, connection, and the ability to grow and develop skills, are all proven ways to support wellbeing at work.

Leading well, begins with being well Most of us are familiar with the airline safety instructions which direct us in an emergency to “put on our own oxygen mask before helping others”. Most leaders I work with know this, but very few are putting it into practice, as they are too busy focusing their attention on supporting everyone around them! If you aren’t taking care of yourself how can you take care of your team? And if you tell your team members to make time for breaks and attend important family events, but aren’t doing it yourself, will your team believe that you really value wellbeing? Will your team members feel empowered and supported to prioritise their health and wellbeing?

Leading well starts with prioritising your own selfcare and modelling your own wellbeing practices.

Making resilience work for you Prolonged stress takes its toll on both our mental and physical health. As leaders we need to develop better resilience skill sets for our teams in managing uncertainty, unexpected challenges, and constant change. We are all born with resilience. It is just our starting levels that are different. You may think your resilience is low because you get burnt out. But actually, you might be great in moments of high stress when others would crumble. Or vice versa. That’s because you can be naturally stronger in one area of resilience than another. I describe resilience as your internal resource for adapting positively to stress, supporting mental wellbeing during adversity, and maintaining health and energy during prolonged uncertainty and change.

Resilience and wellbeing skills training works when it is fit-for-purpose One of the biggest challenges often shared with me in organisations, is of people’s experiences with wellbeing programs that have not worked. Given that there is no one size fits all definition of wellbeing, why would we expect a one-size fits all wellness program to meet our individual needs? Research shows that resilience skills training is effective in improving our health, wellbeing, and performance. But the activities we choose to develop the wellbeing needs of ourselves and our teams need to be fit for purpose. By providing a tool kit of wellbeing and resilience skills, you and your team members are then able to choose the strategy that will best work for what is needed in the moment. For example, a useful resilience skill to help us manage stress in healthy ways is emotional agility. Mental adaptability and mindfulness can help us better switch between on and off. Daily practices to optimise your energy supports emotional, mental, and physical wellbeing.

“RESEARCH SHOWS THAT RESILIENCE SKILLS TRAINING IS EFFECTIVE IN IMPROVING OUR HEALTH, WELLBEING, AND PERFORMANCE.”

Increasing resilience is one of the best boosts for our wellbeing. When you increase your overall resilience, it’s easier to continue to do your best under pressure and maintain a balanced approach to life. Because the reality is that wellbeing isn’t a nice to have, it is necessary. It is necessary for our health, energy, connection, creativity, relationships, performance, and this list goes on. FMCG BUSINESS - APRIL 2022

MARKETING & MERCHANDISING Industry experts reveal what’s new and different in 2022 Stock up with Upstock wholesale ordering app Upstock is one of the largest, most popular online marketplaces in New Zealand for both buyers and suppliers of FMCG to handle all their wholesale orders. Ranging over 500 food and beverage suppliers, it’s a new channel to market for suppliers to easily get in front of the 8,000 grocery markets, restaurants, cafes, bars, plus all the other wholesale buyers on Upstock. Suppliers on Upstock are impressed by how easy and powerful Upstock has been for growing their business. As Guy Hobson, CEO of Native Sparkling explains: “The Upstock free sample store gives us a steady stream of warm leads. We don’t have to go looking for them, instead they come looking for us!” For Waitoa Beer, being able to receive and manage Foodstuffs orders directly in Upstock made an enormous impact on their business. As Head of Sales & Distribution, James Mobbs says: “Upstock allows us a seat at the table with the supermarkets with ease and confidence, knowing we’re not going to miss an order or invoice.” A wide range of supermarkets use Upstock, from chains like Four Square and SuperValue, to regional markets like Moore Wilson’s and The Island Grocer. Larni Wedd, owner of Bellatino’s says: “I just walk around the shop adding items on my phone. It’s absolutely become software we can’t do without.” Upstock was founded by the creators of Xero, so it’s easy to see why people love it. Perhaps most impressive is Upstock has free options available, for both buyers and suppliers. Visit www.upstock.app for more or contact Tom McKerrow T: 021 089 56916 E: tom@upstock.app

“UPSTOCK WAS FOUNDED BY THE CREATORS OF XERO, SO IT’S EASY TO SEE WHY PEOPLE LOVE IT.” 28

FMCG BUSINESS - APRIL 2022

Surge “Challenging times for everyone in our industry and across the nation to be sure, and at Surge we are in the same boat and have had to adapt and refine how we operate to remain relevant and be the best we can for our clients and trade customers,” says Managing Director Tony Trilford. “We are proud of the support we have provided to our clients through Covid, changing business models, cost and supply challenges and also proud of the success many of our clients have managed in spite of the obstacles. “Surge focusses on what is required for success with our clients including strategic direction, NPD, category management, logistics, best channel selection and of course in-field support via sales representation and shelf management.

Upstock

Simplify & grow wholesale orders It’s free to join the best marketplace for wholesale buyers & suppliers. Get your products in front of thousands of stockists today. Receive all your orders in one place, including Foodstuffs orders. Made by the team who created Xero.

www.upstock.app

[ marketing & merchandising ]

“CLIENTS THAT ARE ON THE BOAT WITH US CHART A COURSE WITH US FOR SUCCESS.” “Our bespoke operating platform is tailored to meet our reporting and data collection requirements to enable our clients with real time information to their businesses and time proven strategies for sustainability and growth. “Surge cannot be all things to all people, rather we work with those companies in the health, wellbeing and specialised dietary sectors that focus on emerging trends with points of difference including lifestyle, plant based and on trend products that meet the dietary and wellbeing requirements of modern consumers. “Complementing our own collected data we use the insights collected with our research partner Tracksuit (www.gotracksuit.com) to provide our clients with relevant strategic information that supports current business and strategic direction. “Clients that are on the boat with us chart a course with us for success. “Want to come on board?” For more information please contact Tony Trilford T: 0800 949 333 M: + 64 21436360 E: tony@surgesmc.co.nz www.surgesmc.co.nz

FMCG BUSINESS - APRIL 2022

Social media marketing for FMCG: More than just pretty pictures As one of New Zealand’s first social media agencies, there’s one thing we’ve learnt over the years: there’s more to social media marketing than posting cat videos on Facebook. We know, surprising, right? Since 2009, we’ve worked with FMCG clients from Indomie to Mrs. Higgins, Lee Kum Kee to Halo Top, and everywhere in between. We aren’t here to chase marketing awards to fill our shelves, we prefer to focus our time and energy on combining the art of carefully crafted content with the science of objective-focused and data-backed marketing to help you achieve your goals. Whether you’re looking to lay down solid strategic foundations, or deliver results through execution, we can help with that. From full-service strategy creation and implementation, content creation, social profile and community management, and influencer marketing to social video production and photography through our in-house studio team, when it comes to social media, we’ve been there, done that, bought the T-shirt and worn it to threads. To be honest, we could probably do with a new T-shirt, but we don’t have time! We’re too busy getting ready for your next big project. Most importantly, we’re just a bunch of excellent people brought together by the desire to create cool stuff to help our clients get where they need to be. So if that sounds like a train you’d like to grab a ticket for, get in touch, we can’t wait to hear from you. Mosh Social Media https://mosh.co.nz/ E: info@mosh.co.nz T: 09 525 7020

[ profile ]

LET ORBIT MARKETING SHARE YOUR STORY Orbit Marketing was created by seasoned industry professionals who saw a need for excellence in experiential marketing. By combining their decades of experience in grocery, events, and promotions they have succeeded in this goal. Being a nationwide company, they service all New Zealand regions, big and small. Orbit ensures consistent delivery by having senior management not only in Auckland, but also in Wellington and Christchurch. The team’s experience in supermarket sales has led Orbit to become one of the highest selling marketing agencies. To consistently achieve this standard, they understand the importance of quality Brand Ambassadors. By investing in training, Orbit produces motivated Brand Ambassadors who genuinely engage. Through this, they tell the brand’s story, sample the product, create demand, and build love for your brand, which creates ongoing sales and ensures ROI.

Orbit loves what they do and can take care of everything from start to finish. They pride themselves in getting to know your needs and creating successful campaigns. The daily feedback collected by Brand Ambassadors creates quality, extensive reports, which provide invaluable information. This data not only quantifies the success of your campaign but also generates key learnings and future recommendations. Orbit Marketing thrives on surpassing their clients’ expectations and bringing every brand’s personality to life to create long-term, loyal customers. Let Orbit’s energy and excellence help build the pathway to your brand’s growing success. Let’s talk about showcasing your brand.

QUALITY TEAM. HIGHEST SALES. PROVEN RESULTS. Let’s talk

Auckland 09 553 6390 Wellington 04 595 6705 Christchurch 03 974 1103

CREATING AUTHENTIC BRAND EXPERIENCES

orbitmarketing.co.nz | info@orbitmarketing.co.nz

MARKETING SUMMIT Ellerslie Racecourse, Auckland

NETW ES DA

STAY AHEAD OF THE GAME IN NZ’S FAST-MOVING GROCERY AND RETAIL SECTORS Elevate your FMCG brand with presentations from recognised industry experts, Q&A panel discussions and valuable networking opportunities. Hear from key speakers and industry experts including

KATHERINE RICH New Zealand Food and Grocery Council

MORGAN MCCANN New World Foodstuffs North Island

LARISSA WATSON NielsenIQ * Program subject to change

Rescheduled date

Thursday 1st September 2022 Ellerslie Events Centre, Auckland

www.fmcgsummit.co.nz SPONSORED BY

[ profile ]

THE ALLIANCE MARKETING TEAM SAYS “THANK YOU” “We can all relate to the challenges and confusion that the last two years have thrown us,” says Karen Kenny, General Manager at Alliance Marketing. “We decided from the outset that we would do our best to keep everything ‘Business as usual’ for our team, our principals and our retail partners. Our team never faulted, they dug deep and helped whenever and wherever they needed to. “As a business we committed to working alongside our team, prioritising their safety and wellbeing and continued training and support. We appreciated the need to display consistency, confidence and stability to our principals and our team and they rewarded us with loyalty, dedication, and hard work beyond our expectations. “Tom Campbell and Rachael Harris who head our Foodstuffs North and South Island Teams and Liz Brash who heads our National Countdown team all showed extraordinary leadership skills, they lead from the front and by example. “The last two years have highlighted how working collaboratively with the stores as a team has ensured the best result for the end customer. “A big thank you to all the store owners, managers and buyers who have contacted us to thank us for our teams’ efforts over this challenging

time, we appreciate how busy you all are, so thank you for taking the time to acknowledge our team and their contribution in your stores! “As we head into Easter 2022, we are all looking forward to returning to some form of normality and re-opening our Instore Demonstration Division,” says Kenny. Managing Director of Avril & Clyne, Andrew Clyne says: “Alliance Marketing has been an exceptional partner to Avril & Clyne during this time, ensuring all their brands continued to be represented at store level, keeping our consumers satisfied and the shelves stocked. “Communication has been outstanding, we have been kept well informed as to what is happening, what may eventuate and importantly how they have been managing the business throughout this time. The team have shown exceptional courage and dedication working well outside of expectation.” Mark Jackson of Sistema Plastics says: “Over the past two years, businesses in New Zealand have experienced their most challenging period in history due to lockdowns, and Sistema was not exempt from this. Your passion for the brand, perseverance to succeed, and dedication to both of our businesses have not gone unnoticed, and we could not be happier to have Alliance representing us.”

Sales

Merchandising

We provide Fully trained Demonstrators nationwide Planned Campaigns suited to your products Demonstrators available for foodshows and expos Collabs with complementary brands for cost savings! Full Comprehensive Reporting Including: gs Bookin Taking t d up o now an 2023! March

Customer feedback Taste to sales conversion rates Photos from all demonstrations Call to discuss your Instore Demonstration requirements and we can customise to your needs

Contact Lisa Mowbray www.lmowbray@alliancemarketing.co.nz lmowbray@alliancemarketing.co.nz Phone 021 192 9914

Instore Demonstrations

[ marketing & merchandising ]

ALL BEANS, SAME POD

Lew Bentley, Head of Strategy at Shopper Marketing Agency Energi. lew.bentley@energi.co.nz

FMCG BUSINESS - APRIL 2022

Ever since we became a pod family we haven’t looked back. The beautiful genius of it all. Just pop it in, push a button, and out comes coffee that is on par with most cafés. Thanks George. In the past we’ve tried several barista-at-home options, but they have inevitably proved to be complicated, expensive and quite frankly: rubbish. And of course we’ve been through the plunger years, which delivered simple but heavily compromised black soup. No doubt there is probably a decent dose of user error in all this, but then again, I can “open and enjoy” in most food and beverage categories without any fuss. Pods give that in coffee. Anyway, to get to the point of this article, I was trolleying along the other day past soups and alternative milks and something on the plunger shelf caught my eye. An old brand that I liked seemed to have lost its way. It used to have a strong and distinct identity based around a quirky character that took me back to my distant past travelling around the Ottoman Empire. But now he was gone; replaced with just the brand name and a generic beige pouch. Que? Scanning the shelves, I noticed firstly a very big crowd of brands after my attention. The second thing I noticed was that, apart from a couple of muscular Italians, and a couple of exotic Wellington coffee cultural ambassadors, everyone was looking very similar. Saying the same thing. Like they were cut to the same brief. Generic, stripped back, all origins, blandness and a logo. Now every category has its conventions by which brands must establish credentials, but this seemed extreme. I counted half a dozen brands all speaking

essentially the same language. Exploring things further via websites and social handles (the conventional mainstay of most FMCG marketing these days, apart from price promotions) revealed a clear category blueprint. To play the conventional coffee game you need to follow these rules: 1. Start with your passionate founders who love coffee 2. Talk up your craft and dedication to making the perfect coffee 3. Have a range of four or five blends as proof of your labour 4. Specify the origin of your beans, preferably with a community connection story 5. Make sure you have clean sustainability/ethics credentials Social media provides different platforms for brands to reach out and engage with people, share ideas, stories, pictures and to create things worth talking about. They are a way for brands to build consumer relationships based on relevance and inspiration. However, looking at how most coffee brands tend to use social media is nearly all one-way traffic. Facebook and Instagram are the main channels used and a scan of content across the category shows a predominance of brands using social media for broadcast rather than engagement (i.e. talking about themselves rather than 2-way engagement). There is a lot of telling people about coffee blends, roasting coffee, where to drink coffee, how drinking coffee is enjoyable, and looks into coffee origins. All very predictable and samey. There is very little in terms of innovative marketing ideas that make a brand stand out and inspire customer interaction. It seems that coffee is a great stimulant, but not a very stimulating category.

[ profile ]

OUTSOURCED SALES AND MERCHANDISING BRAND BUILDING EXPERTISE At Storelink, we successfully build brands and provide reporting and insights, an incremental improvement cost effective retail service solutions to some of New culture and creating additional ‘value adds’ for our Zealand’s most reputable FMCG manufacturers. partners. Recently Storelink added logistics, POS Founded in 1987 and proudly locally owned and management and co-packing to pre-existing sales and operated, we are one of New Zealand’s largest Sales and merchandising services and further investment in leading Merchandising agencies with extensive market reach, a IT services will enhance the client experience even more. talented team, and a proven infrastructure. The retail and economic environment will continue to “Our industry is about collaboration, people and change, and many manufacturers are already reviewing Tony Puppyn, General Manager delivering results so we are continuing to invest in the sustainability of their business model. The increasing at Storelink recruiting and developing the best talent available and cost of business and an incredibly competitive and creating a high-performance culture that we know our clients will benefit constrained labour market mean outsourcing sales and merchandising is a from,” says Tony Puppyn, General Manager. model that must be considered. Storelink offers a range of proven services, Our industry is evolving quickly so Storelink has executed an exciting a talented experienced team and infrastructure ready to build your brand. business strategy that focusses on true collaboration and partnerships, Chat to us and we can tailor a complete retail services solution that cost effective tailored client solutions that deliver results, transparent will meet the needs of your business.

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P:P:+64 +649 9475 4759039 9039 E: info@storelink.co.nz E: info@storelink.co.nz W: www.storelink.co.nz W: www.storelink.co.nz FMCG BUSINESS - APRIL 2022

[ FGC ]

A HUGE LEAP FORWARD

Katherine Rich Chief Executive NZ Food & Grocery Council www.fgc.org.nz

food& grocery COUNCIL NEW ZEALAND

Things have moved fast since the Commerce Commission announced the recommendations from its market study into the grocery sector. With the ink on the report dry for barely a week, stakeholders were being invited by the Ministry for Business, Innovation and Employment to gauge priorities. The Food & Grocery Council was one of the first to sit down with officials, who are clearly keen to get things moving. No doubt those expecting more from a consumer angle were disappointed the options on market structure in the draft report weren’t retained – such as separation of the wholesale food market and forced sales of sites to encourage a third big player into the market. That’s not going to happen yet, but Commerce Minister David Clark’s comment that he’s not ruling out other options if these recommendations don’t achieve consumer benefit puts everyone on notice. Change is expected by the next review in three years’ time. For suppliers, the report was a victory. The Commission delivered all we had brought to their attention, and more. They confirmed a lack of competition in the market is stifling innovation and consumer choice, and creates an environment where suppliers are regularly treated unfairly. I know some suppliers have doubts about what’s been achieved, but I wonder if that means they haven’t read the report in full. In the words of FGC Chair Mike Pretty, the recommendations are “pretty damn significant”. The big victory was the recommendation for a mandatory Code of Conduct for supermarkets – not

“THE BIG VICTORY WAS THE RECOMMENDATION FOR A MANDATORY CODE OF CONDUCT FOR SUPERMARKETS”

FMCG BUSINESS - APRIL 2022

a voluntary one written by retailers, but a compulsory set of expectations enshrined by officialdom. Suppliers have been talking about this for 12 years, and there’s no doubt it will put sunlight on what is a very murky part of our industry by laying out good business practices, including: • prohibiting retrospective contract demands and unilateral changes to contracts • ensuring reasonable payment terms, clear and fair delisting processes, and protections of supplier intellectual property (so ideas are less likely to be swiped for private label) • prohibiting payments for waste and theft and the requirement to apply the same product ranging and shelf allocation principles to suppliers’ products as for private label products. The win suppliers didn’t expect was the recommendation of an industry regulator, which goes far beyond suggestions of a single Commissioner or Adjudicator. A regulatory body will have significant powers, including collecting information on retail activities, enforcing the Code of Conduct, monitoring and enforcing compliance on covenants and land banking, and monitoring conditions of entry to the market and the expansion of retailers. There were two other big wins. A dispute resolution scheme was a welcome surprise. It will deal with supplier complaints and concerns (including anonymously). Where now suppliers have to call supermarket CEOs as per supermarket voluntary guidelines, these will be dealt with through this scheme. Crucially, it will be independent, with the Commission wanting it to be free from the influence of retailers, who wanted a voluntary scheme overseen by their own people. This will give suppliers confidence to raise issues. The Commission also recommended a disclosure regime, which will require supermarkets to disclose market share, store details, information to inform assessments of profitability, the proportion of private label sales, and details of consumer complaints. It will ensure the next review does not begin cold. This report is a huge leap forward on the transparency and scrutiny of supermarkets, the likes of which we have never seen. The changes will affect every part of the network. Individual stores will have to abide by the Code, rather than hiding behind head office rules, meaning greater accountability, particularly on the treatment of merchandisers and salespeople, and on ad hoc financial demands. But we still have a duopoly, and we need more sizeable retailers to achieve genuine competition. Time will tell whether the other Commission recommendations make a difference to encouraging new entrants.

[ James & Wells ]

HEALTHWASHING – DOES IT STILL EXIST? There is no doubt that health and wellness is becoming a high priority for consumers, particularly in the context of the COVID-19 pandemic. There are some great examples of innovative wellness businesses playing in this space, but there are also a number of companies trying to make their current product offerings fit to capitalise on these trends. This is where “healthwashing” creeps in - the not so overt way of marketing a product in a healthy way, even though the product lacks real nutritional value. There are several protections that New Zealand law and regulation provide against food producers engaging in such misleading marketing practices. The prohibition on unsubstantiated claims in the Fair Trading Act 1986 is a good catchall provision for products which lack real evidential support for the claims they are making. The Australia New Zealand Food Standards Codes go further, requiring that where any health claims are made which suggest or imply a health effect, then these must either fit within the prescribed category of permitted general level health claims set out in the Codes, or go through a rigorous process of substantiation to become a high level health claim (Standard 1.2.7). Any implication that the product is in any way therapeutic in nature is also prohibited (Standard 1.2.7-8). While the Codes require you to have a prescribed name or a description that indicates the true nature of the food (Standard 1.2.2-2), sometimes this can be a difficult if your product transcends boundaries between cosmetics, supplemented foods and dietary supplements – such as edible face masks, health drinks with collagen and detox shots for smoothies. Supplemented Foods (which come under the Supplemented Food Standard 2016), can advertise health benefits by making a health claim but again the relationship between the property of food and health effect must be substantiated and notified to the Ministry of Primary Industries. However, just because a product doesn’t fall foul of these regulations, that doesn’t deem it to be a healthy product. For example, a claim that the product has “less than a teaspoon of sugar”, is “gluten free”, or “contains superfoods”, may still be nutritionally the same, or worse than a packet of potato chips. Online grocery shopping has also perhaps made it less

likely that consumers will click through to read the nutritional information to counteract the hyperbole and eye catching “healthy” images. Snacks have been an area rife with healthwashing in the past – as consumers look to snack for a nutritional boost, rather than just to curb hunger. However, genuinely healthy innovators are experimenting with more nutritionally dense ingredients for snacks such as chickpeas and quinoa. When marketing snack foods to children, even more care must be taken. The Children’s and Young People’s Advertising Code, states that a special duty of care must be applied to the marketing of occasional food and beverage products to young people. However, the Code is voluntary and while it targets the more obvious unhealthy products, there can still be room for a certain amount of greenwashing of seemingly “good” products that don’t really stack up in overall nutritional value. So buyer beware, healthwashing is still out there – but in today’s environment it takes a clever eye and sound reading of nutritional labels to actually pick it out. If we have more food producers investing in truly healthy innovation, then perhaps healthwashing will become a thing of the past.

Stephanie Hadley Associate, James & Wells Since 1979, James & Wells has been at the forefront of innovation in Australasia. We are here to help you grow, leverage and protect your intellectual property. www.jamesandwells.com

“SNACKS HAVE BEEN AN AREA RIFE WITH HEALTHWASHING” FMCG BUSINESS - APRIL 2022

WHAT’S COMING UP IN FMCG BUSINESS 2022 Connect – Engage – Inspire ISSUE

FEATURES

CATEGORY INSIGHTS

February

• Breads and Specialty • Health and Wellness Breads • Packaging and Design • Salads and Dressings • Commercial Equipment • Functional Foods

March

• Breakfast Foods • Chilled Convenience • Chocolate and Foods Confectionery • Recruitment & Training • Dressings and Sauces • Security • Eggs and Poultry • Pet Food and Pet Care • Haircare • Soups • Dairy Products

ISSUE

FEATURES

CATEGORY INSIGHTS

• Baby Products • Eftpos and Point Of Sale • Storage

• Biscuits and Crackers • Vitamins and Supplements • Condiments

August

• Frozen Food Trends • Kitchen Equipment • Anti-Aging Products

• International and Ethnic Foods • Rice, Noodles and Pasta • Herbs and Spices

September

• Waste Management and Recycling • Beauty and Make-up

• Cold Drinks • Skincare • Cleaning and Homecare • Ice Cream and Desserts • Deli • Fish and Seafood

July

April

• Marketing and Merchandising • Fresh Produce • Winter Wellness

October

May

• Transport and Logistics • Spreads • OTC Medicines • Convenience Meals • Innovation • Pies • Sustainability

• Organic Products • Sugarfree Products • Cheese

June

• Vegan and Vegetarian Products • Allergy Friendly Foods • Nuts and Pulses

Summer Issue

• Sustainability • Personal Care Products • Snacking • Oral Care • Back To School • Summer Entertaining Products • First Aid Supplies

• Hot Drinks • Baking Products • Oils

Whether you have exciting NPD due out, an announcement to share, or just looking for a brand boost, contact Vicky Bennett to find out how to get your marketing communications in front of a highly engaged and targeted audience.

Vicky Bennett P: 09 947 5675 | M: 021 626 115 vbennett@intermedianz.co.nz Should our features list not marry up with your NPD launches or product timings, you can still promote them when they launch. We’re happy to work with you on that. Many brands choose to promote outside of our scheduled features as it’s all about timing!

[ legal advice ]

SHIPPING DELAYS – HOW LONG IS TOO LONG? Most of us have noticed recently the absence of some of our favourite products at the supermarket. The most likely culprit? Congested ports, supply chain disruptions and staff shortages across all sectors as staff are increasingly either sick or self-isolating. The Omicron outbreak has also created a surge in demand for online orders. And while we have come to expect these types of shipping delays, not all of us are willing to accept them. Under the Consumer Guarantees Act 1993 (section 5A), the Fair Trading Act 1986 (section 21), and the Contract and Commercial Law Act 2017 (section 160); sellers must deliver goods to the consumer within the period specified, or if no period is specified, then within a reasonable period. If goods are not delivered by the specified date or within a reasonable period of time, consumers may reject the goods, and either demand a refund or claim damages for any reasonably foreseeable consequential loss the consumer has suffered. The damages claimable by a consumer could be for instance, the cost of procuring alternative goods for a special event, or a consumer’s own commercial purposes. What then is a “reasonable period of time”? This is case specific and will depend on factors such as the nature of goods being purchased; the usual timeframe for delivery; the reason for the delay and whether it was in the seller’s control. For perishable items such as fresh produce, it would be unreasonable for the delivery period to exceed its shelf-life. Periods of force majeure may also be taken into account such as strikes and lockouts, staff shortages, changes to health and safety guidelines due to pandemic, and delays due to war or civil unrest in regions from which goods are supplied or transiting. It is up to the seller to prove they delivered the goods within a reasonable time having regard to any interruptions to the normal course of business. However, a delay may not be reasonable where the seller’s own acts or omissions contributed to the delay such as by failing to place the order and arrange delivery in a timely fashion. In the absence of any specified timeframe for delivery, provided the shipping delays are reasonable

in the circumstances, the consumer must accept those delays. If you have specified a delivery timeframe, and you expect to exceed that timeframe, the following may assist: 1. Notify consumers prior to purchase that delays could be expected and why. 2. Update your website and terms of trade to be clear that you are not bound to any specified time of delivery. You could also expressly contract out of any liability for shipping delays which are outside of your reasonable control such as third-party delays and Force Majeure, however section 43 of the Consumer Guarantees Act 1993 only permits you to contract out of the Act where both parties are in trade. 3. Notify customers of delays as they arise and maintain communication. This may reduce the number of customer complaints your staff must handle in order to focus on shipping and processing. An informed customer may then mitigate their risk of consequential loss. Arguably, a customer who does not respond to a notice of delay, could be deemed to have accepted it. By updating your website and terms of trade as above, and replacing specific delivery timeframes with prior notice that longer than normal delays could be expected, you may be less likely to incur liability as a result of shipping delays during the pandemic and beyond.

Claire Vordermann is a commercial solicitor at Steindle Williams Legal Limited whose range of experience includes commercial leasing, residential and commercial conveyancing and sale and purchase of business. She also has a keen interest in advising clients on franchise agreements, shareholder agreements, service contracts and terms of trade. swlegal.co.nz

“NOTIFY CUSTOMERS OF DELAYS AS THEY ARISE AND MAINTAIN COMMUNICATION.” FMCG BUSINESS - APRIL 2022

[ events ]

Capacity limits for outdoor events have been lifted. Credit: Chris Sisarich

PM REVEALS NEW PLANS FOR NZ Capacity limits for outdoor events have been lifted – and are now increased to 200 for indoor events and hospitality venues. Prime Minister Jacinda Ardern announced the changes, which came into effect on Friday 25 March, and she also lifted other Covid-related restrictions. Compulsory QR code scanning has stopped in New Zealand and vaccine passes will no longer be required from 4 April. New Zealand’s successful management of the Omicron outbreak and high rates of vaccination mean it is now safe to ease restrictions, said the Prime Minister. She said the evidence shows we are coming off the Omicron peak with cases in Auckland having already declined significantly, and a decline expected nationally in April. “To date we have had more than 500,000 reported cases of COVID-19 and expert modellers say there have probably been 1.7 million actual infections. That figure, coupled with 95% of New Zealanders being fully vaccinated, means we now have a high level of collective immunity,” said the Prime Minister. 40

FMCG BUSINESS - APRIL 2022

“New Zealanders have worked incredibly hard to get through this pandemic and as a result of those efforts we are now in a position to move forward and change the way we do things. “First up we have simplified the COVID-19 Protection Framework to target restrictions at those activities that reduce transmission the most. “From 4 April, My Vaccine Pass will no longer be required by the Government, meaning Kiwis will no longer have to be vaccinated in order to enter those venues covered by the Pass. Scanning in requirements for the vaccinated will also end. “We recognise that some businesses, events or venues may still choose to use vaccine passes, so we will maintain the infrastructure for them,” said the Prime Minister.

Vaccine mandates From 4 April, vaccine mandates will be removed, except for health and disability, aged care, corrections and border workforces. Like

[ events ] many other countries we are retaining a small number of mandates targeted at keeping our COVID-19 frontline staff safe and to ensure our most vulnerable, like those in aged care facilities or those with disabilities, are protected from the virus, explained the Prime Minister. “For many this part of our defence against COVID-19 was one of the hardest. But mandates meant we reached the levels of vaccination needed to prevent the devastating outbreaks seen across the world. “We have also used the evidence gathered over the last few months on Omicron to make changes to the Red and Orange settings.”

Testing and isolation requirements remain Orange settings remain broadly the same with no gathering limits but extra guidance on Prime Minister Jacinda Ardern holding safe events, and a new requirement for workers to wear masks at indoor events. At all levels, the testing and isolation requirements remain as they are now. The Prime Minister added: “We are keeping the traffic light framework in order to offer ongoing protections in the event of a new variant or in cases of future surges, but our plan is to move down to Orange and then ultimately Green once it is safe to do so. “Putting people’s health first is the best economic approach. The hard work and sacrifices of New Zealanders delivered the lowest numbers of cases and deaths in the OECD for the last two years and puts us in the best position to recover strongly. “With our cases coming down it’s time to take our next steps with confidence in the collective immunity and protections we have built up. These new settings support greater economic activity and get everyone closer to feeling a bit more normal, while also continuing to manage COVID-19 and provide protection and care for those who need it most. “With our economy now larger than pre-COVID levels, record low levels of unemployment, and tourism about to reopen we are in a strong position to accelerate our recovery. Our COVID-19 restrictions have been tough, but they have delivered a strong foundation for us to move forward,” said the Prime Minister.

NZ reconnects with the world in a series of online events New Zealand’s tourism industry will virtually connect with nearly 300 travel buyers from around the world in a series of events hosted by Tourism Industry Aotearoa (TIA). Commencing on 5 April, the three TRENZ Connect Online events will connect New Zealand tourism businesses with international travel trade buyers from the Americas, UK, Europe, Asia and Australia, offering

“THESE NEW SETTINGS SUPPORT GREATER ECONOMIC ACTIVITY AND GET EVERYONE CLOSER TO FEELING A BIT MORE NORMAL” PRIME MINISTER JACINDA ARDERN a valuable opportunity for delegates to talk business and get the latest updates on New Zealand reconnecting with the world. Featuring TIA’s new Chief Executive Rebecca Ingram as MC, the programme will see a mixture of business-to-business appointments and presentations on topical issues from industry players, including Tourism New Zealand, Air New Zealand and Tourism Minister Stuart Nash. TIA communications manager Ann-Marie Johnson said the event was in perfect timing following the recent announcement that some of the country’s international borders will reopen sooner than expected. “We can capitalise on the border news and make sure New Zealand is right up on the international travel trade radar as a destination that’s open for business and ready to welcome manuhiri,” Johnson said. Despite New Zealand having had closed borders for around 730 days, Johnson said there had been a great response, with the Asia/Australia event attracting almost 400 registrations. “While nothing beats face-to-face interaction, the pandemic has taught us that virtual events are also a great way for people to connect.” The events are part of TRENZ Connect, a digital marketplace launched by TIA last September to connect international market-ready New Zealand tourism operators with the international travel trade, and while registrations for the April events have now closed, eligible businesses can still take part in future events as well as connect at any time with others who have posted their profiles on the TRENZ Connect platform. “The beauty of the TRENZ Connect platform is that it’s ‘always on’. It allows the international travel trade to access the details of New Zealand tourism businesses 24 hours a day, 365 days a year, no matter what time zone they are in. Participants can start a conversation by sending a message at any time. So all is not lost if you can’t make these particular events.” For more information visit https://www.trenz.co.nz/trenz-connect FMCG BUSINESS - APRIL 2022

[ events ]

THE CHOCOLATE & COFFEE FESTIVAL RETURNS

The Chocolate & Coffee Festival brings together New Zealand’s finest chocolate makers, coffee roasters and artisan producers.

The Chocolate & Coffee Festival is New Zealand’s biggest celebration of chocolate, coffee and tasty treats! The Festival is an annual event held in Auckland and considered a ‘must attend’ weekend for all chocolate and coffee enthusiasts. The Chocolate & Coffee Festival brings together New Zealand’s finest chocolate makers, chocolatiers, coffee roasters and artisan producers, just to name a few! Join the exhibitors or get your early bird ticket now - and for special treats and delicious surprises the Chocolate and Coffee Lounge tickets come highly recommended.

When

Where

Early Bird tickets are currently on special here:

The Cloud: Queens Wharf, 89 Quay Street, Auckland City

https://www.iticket.co.nz/events/2022/sep/chocolate-coffee-festival

Day One: Sat 10 September, 2022, 9.00am - 4.00pm Day Two: Sun 11 September, 2022, 9.00am - 4.00pm

Want to join the exhibitors? Visit https://chocolatecoffeefestival.nz/why-exhibit

For Chocolate & Coffee Lounge tickets visit: https://www.iticket.co.nz/events/2022/sep/chocolate-coffee-festival

NEW DATE FOR GROCERY CHARITY BALL During a time of uncertainty around the Covid pandemic, the Grocery Charity Ball organisers have decided to re-schedule the event. They explained: “With the best interests of our valued industry front of mind, the Trustees are moving the Grocery Charity Ball from the proposed 18 June 2022 date to a confirmed date of Saturday October 29th, 2022. 42

FMCG BUSINESS - APRIL 2022

The Grocery Charity Ball will be held at the Cordis Hotel in Auckland.

“The venue will still be the Cordis, in Auckland and all table/ticket bookings will be carried over. “By the later stages of 2022 we’re sure the industry will be truly looking forward to reconnecting for a special evening as well as supporting Catwalk, our very deserving recipient charity.” For more information please contact Jackie at S2N Events - jackie@s2n.co.nz

OUT & ABOUT

ld ery Manager at New Wor (L to R) Steve Ogden, Bak s bun collab for Easter. revealed a new hot cros

of Pic’s Peanut Butter Kaikoura, and Pic Picot

Foodstuffs NI’s new General Counsel and Company Secretar y Julian Benefield (R) volunteered at the PAK’nSAVE Clendon opening in Auckland .

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Wellington City Mission and New World celebrate one year of Social Supermarket service this year.

SNAP

Has your team moved to new premises, or been part of a fun event, great harvest, or promotional activity? Send us your favourite snapshots to be in to win a Limited Edition Sultana Bran® Hot Cross Bun Flavour Cereal prize pack, courtesy of Kellog New Zealand.

WIN!

Just email your high res image with a caption to trubanowski@intermedianz.co.nz

AND

FMCG BUSINESS - APRIL 2022

[ convenience & impulse retailing ]

C&I EXPO

NEXT STOP, NEW ZEALAND!

Charlie Nasser (Pacific Optics), Raj Arshanapalli (Shell Freemans Waterhole), Michael Khoury (Khoury Co), Clive Serracino (Pacific Optics)

Deb Jackson, Associate Publisher, C&I NZ

Tasting on the Naked Life stand

Welcome to Convenience & Impulse Retailing New Zealand (C&I NZ), created proudly in partnership with the New Zealand Association of Convenience Stores (NZACS). WOW! C&I Expo 2022 has wrapped up in Melbourne, Australia, and it was a huge event! We’ve had amazing feedback from exhibitors and visitors on how exciting it was to get together again. All the exhibitors put extra effort into making their stands shine, and the audience was Steve Brown (UCB) and Romalie Cascini (BP) overwhelmed with new products to taste, touch and trial. There was entertainment, giveaways, comedians, and robots to the country with innovative partnerships and new round out an incredibly successful and jam packed two store growth. days of business building and connection. We’ve also got part two of our series on There’s no time off for the C&I team though and sustainability, where we’ve spoken to Colin Matthews, our next stop is New Zealand, which takes place at APAC Sustainability and ANZ Engineering Director, The Cloud in Auckland on 19-20 October. PepsiCo and Marika McCauley Sine, Global VP For an Exhibitor Prospectus regarding stands or Sustainability, Mars Petcare about how their space at C&I NZ Expo contact Safa or James from the companies are working towards a greener future. C&I team at exhibition@c-store.com.au or by phone – We’d like to thank Matthew Lane, Colin Matthews, Safa 0405 517 155 and James 0435 140 680. and Marika McCauley Sine for their contributions. In the April issue of C&I NZ, we’ve got an exclusive interview with Matthew Lane, General Manager, Cheers, Night ‘n Day, which continues its expansion across Deb Jackson

PETROL AND CONVENIENCE NEWS PROUDLY BROUGHT TO YOU BY 44

FMCG BUSINESS - APRIL 2022

[ convenience & impulse retailing ]

Tal Avrahami (Smooth Wholesales)

Justin Harrison (Naked Life)

Murray Raeburn (Calm & Stormy)

Trevor Hansen (Signature Desserts)

Eddy Nader (Nader Petroleum) and Harry Phillipou (Pacific Optics)

The Ampol and Coca-Cola Europacific Partners teams

Vern Brickman (Adverto & PumpTV Global)

Haydn Tierney (Bowser Bean)

FMCG BUSINESS - APRIL 2022

[ convenience & impulse retailing ]

A CONVENIENT COLLABORATION

Night ‘n Day continues its expansion across the country with innovative partnerships and new store growth, writes Thomas Oakley-Newell. In a year shrouded in doubt and uncertainty, Night ‘n Day managed to navigate its way through these difficult times by continuing its growth in P&C as well as identifying new business avenues to explore. Over the past 12 months, the convenience chain opened five new stores and partnered with Menulog, allowing customers the option of purchasing products through click and collect or having it delivered directly to their door. Matthew Lane, General Manager at Night ‘n Day, said by offering both delivery and pick up options contact time was reduced, which has been a big driver during the pandemic. “Having a delivery service has enabled Night ‘n Day to reach new customers in areas across the country that previously didn’t have delivery available. We’ve seen strong demand in centres like Invercargill and in different parts of cities and towns, such as southern Whangarei, where they have not had access to delivery before.” Lane said while their products had been available on other delivery services in New Zealand for a few years, the decision to work with Menulog was about wanting to drive and channel customers through a single delivery platform. “We were previously on other delivery platforms but didn’t actively push it ourselves because we weren’t fully confident on the motivation in pushing that relationship. Whereas with Menulog, they really give us an incentive to push people through the Menulog channel to buy our products.” The timing of joining Menulog could not have come at a better time, with figures released from Menulog revealing the number of orders from convenience stores such as Night ‘n Day have increased by almost 420 per cent since April last year, and Lane said that the Menulog platform and its delivery service has been a game changer. “It’s key to our future growth – from being able to provide us with delivery drivers through to analytics that monitor performance to ensure we are providing the best service possible.” Morton Belling, Managing Director of Menulog, said that demand is due to several factors including the number of people opting for contact-free buying due to Covid as well as a desire for fast access to a wider range of food and products. “The availability of outlets like Night ‘n Day being open 24/7 and giving people access to everything

“WE FEEL WE’VE GOT THE RIGHT OFFERING IN THE MARKET NOW, SO FOR US IT’S JUST ENSURING THAT WE’RE CONTINUING TO DEVELOP QUALITY STORES.” – MATTHEW LANE, GENERAL MANAGER, NIGHT ‘N DAY

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[ convenience & impulse retailing ] from light meals such as wedges and kebabs through to staples like bread and milk is a major factor behind the growth in demand.” In addition to the five stores opened last year, Lane said the business plans to open three new stores in the coming three months and possibly three more in the months after that. “We’re heavily engrossed at the moment at enhancing our technology further and have done a lot of infrastructure change into the technology to give us the foundations to grow, and now we’re looking at implementing a bit more digital amongst the stores.” Adapting to the changing market is something Night n’ Day consistently does, with Lane stating they’re constantly adding new products onto the menus, trialling them, and removing them if need be. “The latest product we’ll be trialling is the bubble tea, which seems to have a bit of hype around it in New Zealand, and that will be launched shortly within our stores.” With various lockdowns in place over the past few years, Lane has noticed a trend that consumers are more inclined to shop locally. “Having a lot of owner-operated stores engaged in the community has really generated a lot more support from the restricted areas. “Also, people are using convenience more to shop for their grocery basics, as supermarkets have been hit hard as being hotspots or locations of interest throughout Covid, so with convenience having a smaller format there seems to be a bit more comfort in shopping through the channel.” While Covid may have seen consumers moving towards the convenience channel in an attempt to avoid contact, Lane said it was important to not focus business around Covid as things change so quickly. “We’re always looking for opportunities and our biggest opportunity now is probably store number growth. We feel we’ve got the right offering in the market now, so for us it’s just ensuring that we’re continuing to develop quality stores.” Lane also said that there are a few legislative pieces that will draw attention to the industry over the next few years. “Primarily, we have the Commerce Commission Report which has just been released and that will affect the access to wholesale for us. It’s currently still under review, the final report fell relatively flat, but it seems the Government is not taking the final recommendations as the end point.” Another piece of legislation expected to have a big impact is the introduction of the Smokefree Aotearoa 2025 Action Plan, that aims to reduce the number of retailers able to sell tobacco from the current 8,000 to roughly 500. “We’re pretty comfortable with our position, we focus our profitability on food-to-go, milk bar, and coffee. But what we can see out there in the market is that there are a lot of independent smaller stores, roughly four to five thousand of them, that are heavily reliant on that tobacco market and having it ripped from them would literally evaporate most of our standalone P&C sites.”

“[MENULOG IS] KEY TO OUR FUTURE GROWTH – FROM BEING ABLE TO PROVIDE US WITH DELIVERY DRIVERS THROUGH TO ANALYTICS THAT MONITOR PERFORMANCE TO ENSURE WE ARE PROVIDING THE BEST SERVICE POSSIBLE.” – MATTHEW LANE, GENERAL MANAGER, NIGHT ‘N DAY

FMCG BUSINESS - APRIL 2022

GOING GREEN Companies examine the challenges, opportunities, and importance of creating a sustainable future for their business and the planet, writes Thomas Oakley-Newell. Following the interest in the sustainability feature in our March issue, C&I NZ has decided to continue to talk to companies about the methods in which they are attempting to create a more sustainable, greener future for their business and the planet. Businesses and their sustainability models and targets are now being seen not as something companies can choose to be a part of, but as a necessity in ensuring the longevity of the world we live in. Across the world, we are witnessing the effects of climate change and businesses are starting to take notice by implementing procedures that lessen the impact their model has on the environment.

Key commitments PepsiCo has launched PepsiCo Positive, which Colin Matthews, APAC Sustainability and ANZ Engineering Director at PepsiCo, said is the company’s strategic end-to-end transformation with sustainability at the centre of how the company will create growth and value by operating within planetary boundaries and inspiring positive change for the planet and people. PepsiCo Positive will drive action across three key pillars – positive agriculture, positive value chain, and positive choices, which are outlined by Matthews. “PepsiCo is working to spread regenerative practices to restore the earth across land equal to the company’s entire agricultural footprint (approx. seven million acres), sustainably source key crops and ingredients and improve the livelihoods of more than 250,00 people in its agricultural supply chain.” 48

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[ convenience & impulse retailing ]

“NOW MORE THAN EVER CONSUMERS ARE AWARE OF THE INTERCONNECTED NATURE OF OUR FOOD SYSTEM – ITS IMPACT ON OUR PLANET, ITS SUPPORT FOR OUR COMMUNITIES AND ITS ABILITY TO PROVIDE NOURISHMENT.” – COLIN MATTHEWS, APAC SUSTAINABILITY AND ANZ ENGINEERING DIRECTOR, PEPSICO The PepsiCo Positive value chain will help build a circular and inclusive value chain. In 2020, PepsiCo committed to transitioning to 100% renewable electricity globally by 2040 – PepsiCo ANZ reached 100% renewable electricity last year. “PepsiCo continues to evolve its portfolio of food and beverage products so that they are better for the planet and people. In 2020 PepsiCo ANZ launched Smith’s Baked – a chip with 50% less fat when compared to our Crinkle Cut potato chips. And in 2019 we moved from palm oil to Aussie grown canola, removing 1,700 tonnes of saturated fat from Australia’s food supply per year. 70% of our snack portfolio complies with our goal not to exceed 1.3mg of sodium per calorie,” Matthews said of PepsiCo Positive choices. Another company committed to bringing about change is Mars Petcare, who’s key commitments include reaching Net Zero emissions by 2050, sustainable sourcing its ingredients, 100% of its plastic packaging to be reusable, recyclable or compostable by 2025, as well as a social mission of increasing access to food, care, and homes for pets in need. Marika McCauley Sine, Global VP Sustainability, Mars Petcare said the company is on a mission to create a better world for pets, planet, and people by bringing even more innovative, sustainable choices and services to pet owners around the world.

“We are transforming the way we work, from how we source raw materials like fish, beef and soy to our own operations – all with the aim of helping people and the planet thrive. At the same time, we recognise that addressing these issues is a generational challenge, which is why we are building lasting partnerships with NGOs, governments, and industry to help transform systems at scale.”

Facing challenges Many companies have now announced emission reduction pledges and environmental goals, with these targets not only reducing their impact on the environment but increasing their reputation in today’s society. A growing number of consumers now demand that products are created in an environmentally sound manner, so it leaves the question, can companies afford not to have a public sustainability roadmap? “Now more than ever consumers are aware of the interconnected nature of our food system – its impact on our planet, its support for our communities and its ability to provide nourishment. Drastic shifts such as climate change threaten the health of our planet and communities and also present challenges for our business. As a company that sources crops from over seven million acres of farmland in 60 different countries, PepsiCo has deep roots in the global food system,” said Matthews. Matthews said that by PepsiCo adopting these sustainability initiatives it will make the company better, faster, and stronger in the long run. “Working to transform the way we create shared value by operating within planetary boundaries and inspiring positive change for the planet and people will make us a better company, with purpose more deeply integrated into our business strategy. It will also make us faster and stronger, enabling accelerated growth and continued

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[ convenience & impulse retailing ]

“WE ARE TRANSFORMING THE WAY WE WORK, FROM HOW WE SOURCE RAW MATERIALS LIKE FISH, BEEF AND SOY TO OUR OWN OPERATIONS – ALL WITH THE AIM OF HELPING PEOPLE AND THE PLANET THRIVE.” – MARIKA MCCAULEY SINE, GLOBAL VP SUSTAINABILITY, MARS PETCARE

investment in our people, business, and communities.” McCauley Sine said Mars Petcare is noticing a growing interest in sustainable products and services amongst pet owners. “Take alternative proteins as one example. According to a recent RaboResearch report, demand for insect protein as an ingredient in pet food could hit half a million tons by 2030, up from 10,000 tons today. In fact, our own survey of 1,500 cat owners across the United Kingdom found nearly half (47%) would consider buying insect protein. “In 2021 we launched Lovebug, the first insect-based cat food in the UK. These insects are grown on a farm that runs on 100% renewable electricity and they are fed on 100% surplus veggies and plants, reducing food waste.”

For the future While we are already experiencing the effects of climate change right now, it will only get worse if nothing is done about it. These companies, amongst others, are taking steps that many governments are not. “We believe that there is an opportunity to change how the world produces, distributes, consumes and disposes of foods and beverages to tackle the shared challenges we face. We aim to use our scale, reach and expertise to help build a more sustainable food system; one that can meet human needs for nutrition and enjoyment, and continue to drive economic and social development, without exceeding the natural boundaries of the planet,” said Matthews. As part of PepsiCo introducing regenerative practices, Matthews

FMCG BUSINESS - APRIL 2022

explained that in South Australia, Mark Pye, who has been supplying potatoes to PepsiCo, which sources 100% of its potatoes sustainably, has implemented an impressive composting system on his 600-acre farm. “The composting system utilities waste to enhance the soil the potatoes are grown in. The compost (a mixture of wood, fibrous material, manure, straw, and water) is made on site with large mounds scattered across the farm that are managed closely – the compost is ‘cooked’ and turned at just the right time to ensure its efficacy. When added to soil the compost delivers nutritional, conditioning and water holding capacity benefits that result in higher yields and increased crop uniformity.” McCauley Sine said Mars Petcare being family owned allows it the independence to think in generations, not quarters, so they can invest in the long-term future of the business, its people, and the planet. “Take renewable energy for example. There is a significant timescale involved in these types of deals, some of which span multiple decades and territories across the globe – we approach them with a mindset of delivering societal impact and making financial sense. This ladders up to our Net Zero ambitions which we’re looking to achieve by the year 2050.” This article originally appeared in the Feb/March issue of Convenience & Impulse Retailing magazine.

If you supply to, own or work in independent grocery, a convenience store, service station, dairy, corner store or mini-mart, the C&I NZ EXPO is the only trade event you cannot afford to miss in 2022.

request an exhibitor prospectus exhibition@candiexpo.co.nz

Reconnect - Renew - Rebuild

19 - 20 october www.candiexpo.co.nz Association Partner

Silver Sponsors

P: 0800 455 785 | E: exhibition@candiexpo.co.nz

BATTERIES

Coppertop baaeries are available in AA, AAA, C, D and 9V sizes

Duracell is the #1 Trusted Baaery Brand

AVAILABLE NOW at leading Petrol and convenience outlets If you are interested in stocking Duracell Baaeries please contact Armand Cronje at Diplomat on 09 477 6400