FMCG BUSINESS AUGUST 2020 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

AUGUST 2020 – Volume 7 – No 7

Old El Paso™ reinvents the humble tortilla

On-shelf 17th August 2020 PLUS! INTERNATIONAL FLAVOURS n FROZEN FOOD TRENDS n RICE & PASTA n NZ EVENTS NEW ZEALAND’S LARGEST FMCG AUDIENCE

contents AUGUST 2020

UP FRONT 4

EDITOR’S NOTE

INDUSTRY NEWS

SPECIAL FEATURES

16 FROZEN FOOD TRENDS 20 INTERNATIONAL FLAVOURS Category insights 24 RICE & PASTA

REGULARS 10 HEALTH & WELLNESS Natural anti-ageing products 11 PROFILE A new offering: Beech Forest Honey 12 BEST IN SEASON Fresh produce update 13 PROFILE Chantal Organics new Grain Free Instant Hot Cereals

14 THE DOLE PROMISE Better for people and for the planet

GOOD BUSINESS 26 INDUSTRY NEWS AND INSIGHTS 27 EXPORT Otis Oat Milk-ing it

28 LEGAL ADVICE A practical approach to renegotiating your commercial lease 29 FGC What price container recycling? 30 MARKETING A virtual success 31 INNOVATION Countdown releases first nationwide grocery shopping app 32 PROFILE QTRACA - no more ambulance at the bottom of your compliance cliff 33 PROFILE Looking for Korean products?

EVENTS 34 EVENT NEWS 35 WHAT’S ON Events for your diary 36 FOODTECH PACKTECH 37 OUT & ABOUT Our people at work and events around the country

DRINKS 38 NEW WORLD WINE AWARDS 40 DRINKS NEWS

FMCG BUSINESS - AUGUST 2020

[ editorial ]

CHALLENGES, CHANGES, AND SILVER LININGS It’s been a very challenging year so far, for many businesses and families. In just a few months, billions of lives have been transformed as a result of the COVID-19 pandemic. We’re now rethinking and changing many facets of our daily lives, from work and travel to grocery shopping and cooking at home. Some of those adjustments are temporary, but others may prove lasting. New Zealanders are certainly continuing to embrace the convenience of online shopping. At the end of March 7.9% of Countdown’s sales were online, but for the last week of the month just before lockdown this grew to 11% of sales, making it the company’s largest ‘store’. Find out more about Countdown’s new e-store and shopping app in this issue. FGC Chief Executive Katherine Rich explains on pg 29 how the current challenges will affect our FMCG sector, which usually generates more than $40 billion sales in the New Zealand domestic retail food, beverage, and grocery products market, and $34 billion in export revenue – representing 65% of total merchandise exports and 46% of total goods and services exports. Food and beverage manufacturing is the largest manufacturing sector in New Zealand, representing 45% of total manufacturing income. Members of the sector directly or indirectly employ more than 490,000 people – one in five of the workforce in New Zealand. There are some silver linings: exciting local events, expos and awards are coming up again soon. I feel truly honoured and lucky to be on the judging panel for a number of food industry awards and to be able to share some of the innovations and award-winning products with you here. Check out our events news in this issue for the latest notes for your diary and keep an eye out for our awards coverage over on Instagram, Facebook, Twitter and in our e-news. The FMCG Business Marketing Summit is back in September and it promises to be a great day out for you and your team, with plenty of inspiration and networking opportunities. Find out more and secure your tickets now over on fmcgsummit.co.nz . We hope to see you there!

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 NATIONAL SALES MANAGER Vicky Bennett vbennett@intermedianz.co.nz ph: 021 626 115 SALES DIRECTOR Wendy Steele wsteele@intermedianz.co.nz ph: 021 300 473 ART DIRECTOR Leanne Hogbin leanne@intermedia.com.au PRODUCTION MANAGER Jacqui Cooper jacqui@intermedia.com.au PUBLISHING ASSISTANT Eclypse Lee elee@intermedianz.co.nz SUBSCRIPTION ENQUIRIES 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. The wrapping used in the delivery process of this magazine is biodegradable. ISSN 2382-1663

ON THE COVER Old El Paso is excited about a new launch this month – find out more on pg 20-21.

FMCG BUSINESS IS PROUDLY ASSOCIATED WITH

FMCG BUSINESS - AUGUST 2020

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 © 2020 - C&I Media (NZ) Ltd

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ORdERS caN bE placED wITH yoUR TERRItORy maNagER OR custOmER sERvIcE ON 0800 800 785

[ news ]

COUNTDOWN ANNOUNCES NEW ESTORE IN WELLINGTON Countdown has announced a new dedicated eStore for Grenada North, Wellington, to help service the significant and growing demand it is seeing for online shopping delivery in the region. Operating 24 hours a day and seven days a week, the 3500sqm eStore will create 50 new jobs and can service more than 7000 online orders each week, thanks to a layout based on what Wellington online customers buy most often. Countdown’s General Manager Brand and CountdownX, Sally Copland, says that with 38% growth nationwide even before the unexpected events of 2020, the online trend isn’t going to slow down, and that demand in Wellington is growing faster than anywhere else in the country. “Wellingtonians have really embraced the ease and convenience of Countdown’s online shopping service, and we’ve been working really hard to open up more online hubs and delivery windows to help meet the growing demand,” says Copland. “Centralising deliveries from the eStore will mean we can really scale and provide more delivery times and better product availability for our online shoppers, plus reduce the load on our bricks and mortar stores in Wellington too.” The eStore will have everything a regular Countdown store has

including a fresh bakery, deli, butchery, shelves of packaged goods, and fresh fruit and vegetables - just no customers in sight. It’s expected to employ a team of more than 100, with around half being brand new jobs. This will be Countdown’s third dedicated eStore, and comes as New Zealanders across the country continue to embrace Countdown’s online shopping services such as pick-up and delivery.

FOODSTUFFS SI JOINS ACTIONABLE CUSTOMER INSIGHTS PROGRAMME Foodstuffs North Island (NI) announced pricing and promotions, and making sure that its Foodstuffs South Island (SI) sister our customer engagement is grounded in Co-op has joined its Actionable Customer a deep understanding of our customers, Insights programme, which will be delivered so that we can deliver a store and digital in partnership with dunnhumby, the global experience that exceeds their expectations. leader in customer data science. It is the next logical step for Foodstuffs Foodstuffs NI launched this programme South Island to join the programme so that in May 2019 to support the Co-op’s both Co-ops have access to rich customer aspiration to become one of the most insights at a national, regional and store customer driven retailers in the world. level.” With Foodstuffs SI joining this programme, Over the past year, Foodstuffs North it means all parts of the Foodstuffs Island has got off to a strong start with this businesses will be able to access key programme with the launch of customer customer insights, tools and practices. promises across each brand, initiatives like “The Foodstuffs North Island Actionable New World’s Everyday Value programme, Chris Quin, CEO, Foodstuffs North Island Customer Insights programme ensures category range updates, and nine new customer data and insights drives our customer insights tools including Symphony decision making every day and having dunnhumby as our partner Shelf Planning, Shop on Lab Customer Insights, and Shelf Review. means we will challenge ourselves to deliver world class offers for The two Co-ops will work closely together on a plan to bring our customers and Co-operatives,” says Chris Quin, CEO, Foodstuffs Foodstuffs SI onto the Foodstuffs NI programme, while Foodstuffs NI North Island. “The programme is focused on ensuring we have a continues to deliver the next part of the plan as committed across the customer-led range and space allocation, smarter customer-driven New World, PAK’nSAVE and Four Square brands.

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FMCG BUSINESS - AUGUST 2020

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[ health & wellness ]

NATURALLY YOUTHFUL HOW TO BOOST YOUR VITALITY AT ANY AGE

Starting your day with a cup of green tea is believed to offer antiSkincare range says: “The natural serum outsells all other serums in the ageing benefits, as green tea is rich in antioxidants, which increase cell market, natural and traditional from large multinational companies turnover. Good natural skincare is also essential for boosting health and including L’Oréal, Neutrogena, Olay and Nivea.” vitality and well worth incorporating into your daily routines. “The range has seen substantial growth of 142.5%*, and the exciting Collagen is the most abundant protein found in the body, thing is that this has all been incremental to the brand’s core Rosehip representing nearly 30% of all human protein content and 70% of range, bringing more customers to our brand.” the protein content found in the skin. It “We are proud to be the largest contender is a key component of connective tissues, “ESSANO COLLAGEN BOOST by value in the natural anti-ageing segment supporting the health of skin, hair, nails, in total NZ grocery, and we have helped SKINCARE IS DEVELOPED bones and joints. Collagen production in grow the category,” says Wills. the body starts to decline around age 25. essano Collagen Boost skincare is developed FOR WOMEN OF ALL AGES” for women of all ages and is packed full of NZ made essano Collagen Boost is the natural active ingredients, which boost your skin’s own collagen production. #1 selling serum* Developed and made in their on-site lab and factory in Auckland, essano In the year since it was launched, the essano Collagen Boost skincare is a proud New Zealand company founded on a pioneering spirit and Kiwi range has rapidly grown and is now worth $1.2m - with its serum ingenuity. essano strives to craft a wide range of ethical and sustainable skin, proudly claiming the top spot as NZ grocery’s #1 selling serum*. body and haircare products, available conveniently at your local supermarket. Rachelle Wills, Senior Brand Manager responsible for the essano *Source: IRI Dollars, Total skincare, New Zealand Grocery MAT 19/04/2020

FMCG BUSINESS - AUGUST 2020

[ profile ]

A NEW OFFERING Beech Forest Honey (also known as honeydew) comes from the beech forests of New Zealand. Made in a process that involves beech tree sap, aphids and ultimately bees, the final product is uniquely different from regular honey made from the nectar of flowers. Beech Forest Honey is highly prized in Europe and New Zealand Beech Forest Honey is gaining popularity in the export market, but is still a relative unknown locally, due to it living in the shadows of Mānuka.

HOW DOES IT TASTE? Our Manuka Doctor Beech Forest Honeydew is harvested from beech forests located near the Southern Alps in the South Island of New Zealand. It is one of the most unique and intriguingly exotic kinds of honey in the world. It has a distinct, earthy aroma with a much milder flavour with notable undertones of vanilla. Beech Forest Honeydew makes an excellent sweetener for natural yogurt or paired with cheese.

WHO WE ARE We design our product range to fit our philosophy – unique and natural as nature intended. At Manuka Doctor we believe wellbeing is best achieved naturally. Making the most of what nature gives us, working with it to keep it as it should be. With a wealth of New Zealand origin plant species

to draw on, Manuka Doctor puts nature first. Due to its geographical isolation and island biogeography, New Zealand has developed a distinctive biodiversity of plant life.

TRIED AND TRUSTED With a long history in beekeeping, Manuka Doctor’s honey products are as unique and natural as the land they come from. A testament to our philosophy – nature’s best from New Zealand, Manuka Doctor focuses on providing customers with the opportunity to enjoy a premium natural product from a brand that’s trusted. Our beekeepers place thousands of beehives all over New Zealand to collect high quality Manuka Honey, bringing the raw honey into our purpose-built factory to pack consumer ready pots.

VERTICALLY INTERGRATED Manuka Doctor operates a privately owned, fully integrated model – from hive to home. Full vertical integration guarantees quality Honey in every pot. From the land, beehives and beekeepers, to the extraction and packing facilities through to exporting, Manuka Doctor owns and manages every step of the process, ensuring the integrity of our New Zealand Manuka Honey through a fully traceable supply chain. Manuka Doctor is a proven, established brand that is the expert authority in New Zealand Manuka Honey.

GLOW LAB AGE RENEW® •F

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Glow Lab Age Renew®, a natural DUCT OF T HE PRO Y CG anti-ageing skincare offer in New M FIN AL IST Zealand supermarkets, is beautiful to use, affordable and most importantly PRODUCT OF works, say the producers. “Within THE YEAR its first year the launch generated $1.4m in value sales, accounting for over 50% of the total natural skincare category growth within NZ Grocery. The core Glow Lab skincare range also continued to grow +5.4%, with Glow Lab Age Renew® proving to be a truly incremental brand extension,” they say.

• R

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•

PRODUCT OF THE YEAR

•F

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UCT OF THE OD YE PR A

FMCG BUSINESS PRODUCT OF THE YEAR Do you have a Hero product that stands out from the crowd? If there’s a tasty tastebud teaser, NPD rockstar, or best seller in your portfolio that deserves to be crowned ‘Product Of The Year’ - we’d love to hear from you! We’ll showcase some of the finalists in upcoming issues and reveal the FMCG Business Product of the Year later in 2020. To find out more on how to enter please email: trubanowski@intermedianz.co.nz

FMCG BUSINESS - AUGUST 2020

UCT OF THE OD YE PR A

[ fresh produce ]

BEST IN SEASON

“LEMONS CONTAIN A GOOD SOURCE OF VITAMIN C WHICH HELPS SUPPORT IMMUNITY.”

Winter produce such as cauliflower, cabbage, broccoli, Brussels sprouts, leeks and kale are all in full swing and are great value. Carrots are available all yearround but are at their best in the winter months – keep them well featured as they are popular at this time of year. Parsnip and swede are in peak supply until mid-August so make the most of these winter vegetables while they are at their prime. Don’t forget about yams, which are a nice addition for consumers to use as a change from potatoes or kūmara. The 2020 avocado harvest started in June, however August brings the beginning of the main season, which will see volumes increase and prices start to reduce.

Kūmara The main harvesting season for kūmara takes place between February to April. After this, kūmara is stored in a temperature and humidity-controlled environment. During this important storage period, they undergo a naturally occurring process converting starch to sugar. They also heal themselves from any cuts or bruises caused during harvesting. Throughout the rest of the year, growers calculate regular consignments of kūmara that are sent to packhouses to be packed and distributed. What to look for: Choose firm, wellshaped kūmara with smooth skins. Avoid any with soft spots, bruising and decay. Storage/ handling: Do not refrigerate kūmara as this can make them bitter. They are best kept in a cool, dry place for up to two weeks.

FMCG BUSINESS - AUGUST 2020

Nutrition: Kūmara provides a source of dietary fibre to help aid healthy digestion and thiamin which is vital for use of carbohydrates by the body. Red kūmara contain a good source of niacin, essential for energy release. Gold and Orange kūmara contain a good source of vitamin A, which is vital for healthy new cells.

Lemons Lemons are a staple fruit that are always in demand and should be kept on shelves year-round. The main crop of New Zealand lemons is harvested from early May until late October, however smaller volumes are also picked on the shoulder seasons. Lemons are imported from December to March to supplement local supply. This year, fruit has been characterised as being slightly smaller than last season. In Gisborne, lemons have been slow to colour due to a lack of cold nights in April and early May, however quality and juice content has been excellent. What to look for: Lemons should be heavy for their size with bright yellow skin and a pleasant fragrance. Thin-skinned lemons are juicier and thickskinned ones are better for zest. Avoid lemons that are soft or with any sign of mould. Storage/handling: Lemons will not ripen any further after they are harvested. Where possible, refrigerate them to slow decomposition. Nutrition: Lemons contain a good source of vitamin C which helps support immunity, a healthy metabolism and reduces fatigue.

Join us on

www.unitedfresh.co.nz

[ profile ]

CHANTAL ORGANICS NEW GRAIN FREE INSTANT HOT CEREALS In July, Chantal Organics launched four new breakfast offerings into the Health & Wellness category, all certified organic, hand made in New Zealand and using organic local dried fruit to add great flavour as well as being tested gluten free. “Chantal Organics is one of the fastest growing brands in the grocery Health & Wellness category, currently growing at 37.1% (Source: IRI; MAT to 21.06.20),” says Marketing Manager Bailey Palmer. Palmer explains that around 65,000 New Zealanders are affected by Coeliac Disease, up from 40,000 ten years ago, and gluten free breakfast products are among the fastest selling in the health & wellness category. “We have also seen a huge rise in awareness and interest in organic foods globally since the COVID-19 outbreak, as educated consumers look to food as medicine and to avoid harmful additives and chemicals in their food. “Two of the newest product launches are Chantal Organics Grain Free Instant Hot Cereals – these are creamy and comforting like a traditional porridge but without the grains, with a bit of crunch that leaves you feeling satisfied and ready for the day ahead. A fibre and protein rich, gluten-free blend of superseeds and creamy cashews, these paleo and vegan friendly hot cereals are made with adaptogenic reishi mushroom

and sweetened with just a hint of coconut sugar. No artificial sweeteners, no grains, no nasties, just pure fuel to power you through your day. In five portable, recyclable pouches - made from 25% recycled plastic - that are perfect for on the go, to take tramping, camping or for breakfast at your desk during a busy work week,” says Palmer. For sales enquiries contact Brent Kennedy brent@chantal.co.nz .

[ profile ]

THE DOLE PROMISE Dole New Zealand is thrilled to announce ‘The Dole Promise’; a global company initiative that aims to increase access to sustainable nutrition, and decrease food waste, packaging waste and carbon emissions for the benefit of its stakeholders, employees, customers, and the planet. The Dole Promise frames this philosophy to include:

by the end of 2020 as a result of COVID-19,” says Barton. “Business as usual simply won’t cut it in the face of a looming food crisis, not to mention the ongoing issues of climate change, resource waste and declining natural resources. There’s no doubt it’s time for change, and naturally the first place for us to start is within our own business.” “The triple-win Sampo Yoshi Better for People is a centuries-old concept, the • Access to sustainable longevity of which proves its nutrition for 1 billion people success. This concept will be by 2025 at the heart of our promises • Moving towards zero to make change that benefits processed sugar in all Dole Dole’s stakeholders, employees, products by 2025 customers and the planet for the future,” says Barton. Better for Planet “We’re working towards a • Moving towards zero fruit more equitable and sustainable loss from Dole farms to future – it’s our responsibility markets by 2025 as the people of today to • Moving towards zero fossilprovide a better planet for the based plastic packaging by generations of the future.” 2025 In New Zealand, Dole is • Aiming for net zero carbon working towards achieving emissions in Dole operations the Dole Promise with several by 2030 local initiatives, including a partnership with OKE Charity, Better for all which provides South Auckland Stakeholders primary schools with sustainable • Dole will continue to fruit and vegetable gardens for positively impact all farmers, children and their communities. communities and people A sponsorship of the “THERE’S NO DOUBT IT’S TIME FOR working for Dole – through Motutapu Restoration Trust its commitment to equal sees funding support a kiwi CHANGE, AND NATURALLY THE FIRST opportunity, living wages, release programme and habitat PLACE FOR US TO START IS WITHIN OUR and an ever-increasing level development for species like of safety, nutrition, and the Coromandel brown kiwi, OWN BUSINESS.” wellbeing. The company also takahe, and saddleback. seeks to advance human rights within the direct operations and supply During the COVID-19 New Zealand lockdown Dole provided chains by building a culture of transparency and accountability. products to KidsCan, Love Soup and Foodbank Canterbury to support The company also aims for a 50% increase in the value of its business Kiwis in need. And an ongoing partnership with a nationwide food by 2025. charity, to be announced soon, will see at least 48,000 bananas donated The promise draws on the spirit of ‘Sampo Yoshi,’ an 18th century to food centres nationwide over the next year. Japanese philosophy that views the well-being of society and business as Dole’s Tropical Gold Pineapples, Ecuador bananas and Bobby Bananas interdependent, and ensures the business is beneficial to the seller, to the are proudly certified by Rainforest Alliance, a non-profit organisation that buyer and to the community. aligns farmers, forest communities, companies, and consumers committed Dole NZ General Manager Steve Barton says that The Dole Promise to creating a world where people and nature thrive in harmony. reflects the company’s commitment to change that helps people and the To see the full details of the Dole Promise www.dolenz.co.nz planet, particularly considering the challenges of the current climate. Dole New Zealand is a subsidiary of Dole Asia Fresh and Dole Packaged Foods divisions of Dole Asia Holdings Pte Ltd. “265 million additional people could be pushed to the brink of starvation 14

FMCG BUSINESS - AUGUST 2020

We commit to contributing to good nutrition for 1 billion people by 2025. We will do this by improving nutrition knowledge and awareness as well as the affordability and availability of our products.

We commit to creating shared value for all our stakeholders.

We commit to zero processed sugar in all our products by 2025.

Through our commitment to equal opportunity, living wages, and an ever-increasing level of safety, nutrition and wellbeing, we will continue to positively impact everyone who works for Dole, increasing the value of our business by 50% for our shareholders by 2025 and creating shared value across the value chain â&#x20AC;&#x201D; from farmers, communities, workforce and suppliers to customers.

With zero processed sugar added to our products we will contribute to combating the associated health risks that come with it.

We are working towards carbon neutrality in our own operations by 2030.

We will work towards zero fruit loss by 2025.

We will do so through sourcing 100% renewable energy for our processing facilities and reducing our greenhouse gas emissions by 50% from 2019 levels. We will also work with partners across the value chain to further reduce greenhouse gas emissions.

One of the many ways we will achieve this is in our Dole operations by diverting organic waste from landfill and repurposing it into new uses and product ranges.

We are aiming for zero fossil-based plastic packaging by 2025. We aim to address food waste and loss reduction with productive waste-based food packaging and other solutions that contribute to a circular economy, including eliminating fossil-based plastics.

We acknowledge that we donâ&#x20AC;&#x2122;t currently have all the answers, but we are committed to learning how to get there.

FROZEN FOODS â&#x20AC;&#x2DC;HEAT-UPâ&#x20AC;&#x2122;

DURING COVID-19 PANDEMIC

Pravina Patel Market Insights Lead Solutions & Innovation at IRI 16

COVID-19 has given a boost to pre-packaged frozen categories and products in the Grocery channel. New Zealand shoppers spent an extra $122 million on frozen food in the year to 28th June. The lead up to lockdown saw massive stock piling, delivering a pinnacle week of sales for the frozen department: dollar growth climbed 74.3% in the week ending 22nd March ahead of the same time last year, outpacing 2019 annual growth of 6.7%. By comparison, total pre-packaged grocery grew 67.6% during the period, versus 4.0% in 20191. As New Zealand moved down through alert levels

FMCG BUSINESS - AUGUST 2020

growth softened, but sales remained elevated. Overall, frozen food sales are up 34.9% in the period since the first COVID-19 case was notified in the week ending 1st March to date, versus the equivalent period last year. Frozen food now makes up 7.3% of total prepackaged grocery value sales, compared to 6.5% in 2019. Every frozen category saw a notable lift in dollar sales over the period, with frozen meat topping growth at 63.4%. Frozen snacks followed, growing 54.1%, with frozen pizza coming in just behind with a 47.1% rise. Frozen meals and ice cream grew at 6.4% and 18.1% respectively1.

[ trends ] Panic-buying stage Frozen food appeals to consumers for many reasons, including long shelf-life giving the ability to stock up, as well as convenience and ease of preparation. According to IRI’s COVID-19 Survey, almost 62% of Kiwis reported stocking up on extra groceries and other supplies in response to the pandemic. Almost half said they were buying enough to cover two weeks of shopping2. In pre-lockdown categories such as frozen fish, meat, pastry, vegetables, potato and snacks all outstripped total department growth. Frozen meat and frozen vegetables led dollar growth over the period, accounting for an additional combined $6.7m over last year1.

During lockdown: frozen as good as fresh Anxiety-induced stockpiling led to out-of-stock situations, 13% of IRI survey respondents claimed they experienced fresh meat being out of stock and 9% reported fresh fruit and/or fresh vegetables being out of stock. This was another important motivator for turning to the frozen aisle. Today, nearly every available vegetable can be found in the supermarket freezer, including broccoli, brussels sprouts, cauliflower, onions, cassava, taro, chillies, capsicum, okra and karela, offering a great substitute for fresh vegetables2. In Level 4 Kiwis were required to work remotely and schools closed for several weeks, making frozen products a useful addition to the grocery list. Frozen offerings have exploded in recent years, including such products as Asian dumplings and buns. Last year, McCain’s Delish Gourmet Kitchen range launched new flavours more typical on the crisps and snack food shelves, like ‘Garlic, Basil & Parmesan’ and ‘Caramelised Onion & Sage.’ This has made the frozen food aisle attract a broader range of consumers. Ice cream innovation has also added to the appeal of the frozen aisle, with exciting flavours such as Peanut Butter Cup, Mango Lassi and Banoffee Pie1. In the five weeks to 26th April (Level 4), the frozen department grew 58.3% over last year. Top growth categories mirrored those of pre-lockdown, along with frozen pizzas, as New Zealanders began missing their takeaways. Leading actual value growth through lockdown was frozen meat (+$15.8m), driven by value-added chicken (+$11.7m). This included the likes of ‘Tegel Take Outs’ that mimic takeaway favourites, up 196.6% on last year. A craving for comfort and indulgence saw ice cream come in second over the period, growing +$6.0m. Asian snacks also boosted frozen sales, with Asian buns and dumplings up 88.9%1.

Despite restaurants and cafes opening their doors again, people have retained an interest in making meals from scratch and baking, from their experience during lockdown. In fact, one third of Kiwis said they had been cooking for enjoyment through COVID-19 and 34% plan to cook meals at home more often in the future. People are still relying on convenience products (33%) to make cooking simple and quick, something the frozen aisle delivers strongly. In Level 1, as ‘normality’ returns, the total frozen department continues to see impressive growth, up 16.4% in the three weeks to 28th June versus a year ago. The top performers correspond to those of prelockdown, though at lower growth rates1. We predict higher levels of sustained growth in the frozen aisle, as we move out of the crisis. Frozen foods will remain a favourite in Kiwi kitchens long after COVID-19 fades, especially as we see a reduction in out of home consumption. Sources: 1 IRI MarketEdge (Grocery) New Zealand Value

“FROZEN FOOD NOW MAKES UP 7.3% OF TOTAL PREPACKAGED GROCERY VALUE SALES”

2 IRI COVID-19 Shopper Survey NZ April 2020

Post lockdown: frozen continues to flourish We anticipate that the growth of frozen food will continue beyond the COVID-19 pandemic. FMCG BUSINESS - AUGUST 2020

A GROWING CATEGORY Easy meals, healthy ingredients and new products drive sales in the freezer aisle.

What’s new in frozen food in New Zealand supermarkets? Tim Campbell, Category Manager, Frozen at Foodstuffs South Island told FMCG Business: “We saw a massive uplift in frozen food purchases over the lockdown period, and the category has consistently grown 5-8% for the past few years now. “During lockdown, we saw customers reaching for ‘fakeaways’ to fill the missing void of having no takeaway options available with frozen chicken, chips and pizza as some of our most popular frozen meal purchases. Frozen seafood has also been steady, particularly during lockdown with customers reaching for crumbed fish, prawn cutlets and squid to get their fish & chips takeaway fix! “Frozen vege overtook ice cream in the last quarter as the largest frozen 18

FMCG BUSINESS - AUGUST 2020

category in Foodstuffs South Island for the first time in over two years, which was mostly driven by lockdown purchasing. “We are constantly seeing NPD in the frozen food space, but some recent standouts include plant-based offerings and value-added vegetables, especially within our Pams private label portfolio,” says Campbell.

Super Nature - made of incredible stuff! Fresh to New Zealand freezers, Super Nature is bringing super healthy ingredients to frozen ready meals in a whole new way, now available in two delicious ranges, Super Nature Wellness Bowls - 350 grams and Super Nature Super Pulses - 300 grams.

[ feature ] Low in calories and filled with Mother Nature’s finest super foods, these meals are nutritious, delicious and ready to eat in just a few minutes. Enjoy for lunch or dinner! Available now from House of Fine Foods, choose from four Super Pulses and two Wellness Bowls tasty recipes. For more information visit www.supernature.com.au or call 09 410 1066.

Plant-based options in the freezer There is also exciting news for shoppers looking for plant-based and vegan options, with I Love Pies launching their new vegetarian-friendly Jackfruit pies and Howler Hotdogs winning Best Hotdog in the 2020 NZ Vegan Sausage Awards. The New Zealand Vegan Sausage Awards honour the best in Kiwi plant-based sausages, recognising the growing number of people choosing vegan and vegetarian diets. The 2020 awards had 30 entries from around 20 different local producers. Jo Williamson, Founder of Howler Hotdogs, says the award is the ultimate compliment. “There’s nothing better than when someone takes a bite out of one of our hotdogs and reels back in surprise, thinking they’ve accidentally eaten meat. We work hard to ensure no one misses out because of their dietary requirements, so to be measured against our peers and judged a winner is wonderful,” says Williamson. Howler launched its vegan hotdogs just over a year ago, and demand has been growing strongly ever since. “In just over 12 months, our Vege Hotdogs make up 15% of all sales, which is phenomenal, and demand keeps on growing,” says Williamson. Howler Hotdogs has also recently achieved the Vegan Tick of approval, giving consumers the ultimate assurance the food they’re buying, and eating is 100% plant based. “The tick assures consumers our hotdogs aren’t cross-contaminated during production and don’t have ingredients derived from animal products. It also gives us extra credibility as we start looking at export markets like Australia,” says Williamson. Pioneers in snack foods, Howler Hot dogs was among the first in New Zealand to cater to the growing number of people with special dietary requirements. Initially offering gluten-free convenience foods, it has expanded its range to include vegan options. Howler Hotdogs is stocked in over 220 supermarkets nationwide.

With 1 in 4 Kiwi households now purchasing vegetarian meals, and in particular frozen vegetarian food enjoying 27% YOY growth, the Let’s Eat range is an answer for those looking for a convenient easy way to enjoy a tasty vegetarian meal with no compromise on texture or taste. With three new products on offer, burger patties and tasty tenders both coated with a crunchy pea crumb and kid-friendly nuggets lightly coated with a crispy tempura batter, they can be either the star of the meal or a convenient snack. Each product is easy to cook and is supported by a website with recipes and inspiration. Let’s Eat is manufactured in New Zealand and each product is Vegetarian Society approved. “As part of the design process, we focused on making sure the packaging was distinctive so easy to find in the freezer,” says Ingham’s GM Sales and Marketing Matt Easton. Let’s Eat is being launched with a digital advertising campaign including online video ads, social and digital media and in store support. “The brand’s main ethos is to provide high quality, tasty plant based products. To deliver on this, Let’s Eat will be focusing on further innovation so watch out for exciting new developments in the future,” says Easton. For more information, visit www.letseatplantbased. co.nz or view our Facebook page letseatplantbasedNZ or Instagram page letseatnewzealand. Orders can be placed with your Territory Manager or Customer Service on 0800 800 785.

“SUPER NATURE IS BRINGING SUPER HEALTHY INGREDIENTS TO FROZEN READY MEALS IN A WHOLE NEW WAY”

Let’s Eat – plant-based foods everyone can enjoy This month Ingham’s New Zealand is unveiling a new plant-based brand, Let’s Eat, to expand its position as a protein supplier and to meet the growing demand for plant-based products. Let’s Eat is a new frozen range of wheat and pea protein products which are ideal for vegetarian, flexitarian or meat lovers wanting to try a plant-based meal. FMCG BUSINESS - AUGUST 2020

INTERNATIONAL

FLAVOURS Spice up home cooking and entertaining ideas with exciting inspiration from all over the world. Are you a fan of Mexican burritos and tacos, Mediterranean cuisines, or aromatic middle eastern spices and Dukkah? Bold flavours from Asia, Mexico, Africa and other colourful countries are highly sought after in New Zealand supermarkets right now, thanks to our love of international cooking shows on TV and our diverse mix of ethnicities. “Old El Paso, the number one brand in the Mexican category, is delivering strong category growth with 22.6% value growth on the quarter (Nielsen we 28.06.2020),” says Keezia Haste, Marketing Manager. She explains: “Old El Paso is on a mission to bring families back to the dinner table and we know that Mexican is the perfect dinner to enjoy as a family. It’s fun, customisable, has lots of fresh ingredients and everyone can get involved. Our campaign, Make Some Noise, has really resonated with Kiwis and we have recruited over 25,000 new households to Mexican this year. With more people eating at home now too, Mexican is so well placed to give families an easy and fun option at dinner. Old El Paso is excited to be launching Pockets this month, it will come in a Kit format, containing 20

FMCG BUSINESS - AUGUST 2020

“OLD EL PASO IS EXCITED TO BE LAUNCHING POCKETS”

[ category insights ] the pocket shaped tortilla, seasoning mix and sauce and also a stand-alone pocket tortilla. This innovation is something to get excited about as it overcomes a key barrier to Mexican consumption, ‘it’s just too messy’*. “This launch will be supported with a new dedicated TV campaign, plus radio, social and instore support. It’s our biggest launch since Stand n Stuff™ six years ago, which was highly incremental to the category and solved a real consumer need. We are also excited to bring a delicious Nacho Spice Mix to the market. We know Nachos is the number 2 meal centre in Mexican, however currently the category doesn’t have a lot of offerings. It’s a great way to introduce Mexican to families and get them to then expand into other meal centres like Tacos, Fajitas and Burritos,” says Haste. *NZ International Foods Usage and Attitudes study 2017.

McCormick Street Food range With authentic world flavours and foods now part of the mainstream restaurant scene in New Zealand, the new McCormick Street Food seasonings make it super easy to recreate these delicious dishes in your own home! With shoppers becoming more adventurous and looking to increase variety, tasty flavours from

FMCG BUSINESS - AUGUST 2020

[ category insights ]

“TASTY FLAVOURS FROM AROUND THE WORLD IN SACHET FORMAT ARE ENCOURAGING TRIAL PURCHASE”

around the world in sachet format are encouraging trial purchase and driving category growth. The NEW Street Food seasonings have fresh flavours and exciting packaging to do just that. No Added preservatives, No Artificial colours and No MSG means all of the flavour and none of the nasties. Available in Katsu Crumb, Caribbean Jerk, Mexican Style and Baharat 25g pouches (each can coat 500g of protein). For more information, contact your local DKSH representative, or phone 0508 356 5323.

Spice up entertaining! Alexandra Fine Foods makes the most authentic Dukkah in New Zealand. It is produced with premium batch-ground spices, herbs and nuts, all roasted and blended by hand to make this delicious ancient Egyptian spice blend as faithful to the original as possible.

Best known as a dip enjoyed with artisan bread and olive oil, Dukkah is now increasingly used as an ingredient in cooking. It is ideal for adding wonderful exotic flavours to any dish – seasoning steaks, or dressing roasted veggies, for instance – and suitable for both gluten free and vegan diets. Alexandra’s Dukkahs are prepared the old fashion way by stone grinding whole spices, which helps to retain the freshness, quality, flavour and aroma. The range presents three ravishing blends – each using over 12 ingredients – with exquisite tastes and textures: • Traditional: Alexandra’s take on the original recipe, made from hazelnuts, sesame, coriander and cumin. • Aromatic: more fragrant, made from pistachios, almonds, fennel and coriander. • Piquant: delightfully spicy, made from almonds, hazelnuts, coriander, paprika and chilli.

“ALEXANDRA’S DUKKAHS ARE PREPARED THE OLD FASHION WAY BY STONEGRINDING WHOLE SPICES”

FMCG BUSINESS - AUGUST 2020

[ category insights ] Available at the deli section of New World, Pak’N Save, Farro Fresh, Moore Wilson and all major delis and now selected Countdown stores nationwide. Prices are usually under $10.

About Alexandra Fine Foods Inspired by the Mediterranean cuisines, Alexandra Fine Foods is a premium food manufacturer with a passion for spices and a wide variety of products based on exceptional ingredients. Alexandra’s uses their own spice blends, which are unique because of their exclusive proprietary recipes and preparation. They select their herbs, nuts and spices from very few suppliers who can meet their strict quality criteria. Alexandra’s offers a range of healthy and delicious ready-to-cook meals, traditional rice puddings, couscous, nuts and gourmet spice mixes, to enhance the everyday cooking experience and entertaining.

Source: NIELSEN SCANTRACK Total Supermarkets - MAT 12/07/20 Val $ Sales

Val % Chg YA

TOTAL INTERNATIONAL FOODS

78,180,423

15.4%

ASIAN SIMMER SAUCE

31,901,002

13.6%

MEXICAN FOODS

46,279,422

16.6%

MEXICAN CARRIERS

18,568,803

17.6%

MEXICAN MEAL INGREDIENTS

11,922,591

18.0%

MEXICAN MEAL KITS

11,465,665

13.5%

SHELF STABLE DIPS

4,322,362

17.1%

TOTAL HERBS SPICES

85,168,646

18.8%

DRY HERBS & SPICES

43,014,474

20.5%

WET HERBS & SPICES

15,538,234

25.4%

SALT

12,116,190

10.4%

PEPPER

11,548,323

14.9%

CURRY POWDER

2,951,425

14.3%

FMCG Business produces a monthly snapshot of category news and highlights, based on information from participating clients and Nielsen data available at time of print. To showcase your products in upcoming category reports, please contact trubanowski@intermedianz.co.nz.

New Zealand’s Favourite Dukkah Range Made right here with premium chopped nuts, herbs and stone-ground spices TRADITIONAL hazelnuts, cumin, coriander and cardamom

AROMATIC almonds, pistachios, coriander, fennel and oregano PIQUANT hazelnuts, almonds, paprika, basil and chilli

Original Dukkah recipes by Alexandra’s

See our website for recipes and more products

CONTACT:

sales@alexandras.co.nz Ph +64 9 570 4739

www.alexandras.co.nz

RICE & PASTA New look for popular cupboard staples. Wilson Consumer Products markets the Diamond brand of pasta and Diamond Rice Risotto in New Zealand. Diamond has been a cupboard staple for Kiwis since the onset of World War II. Marketing and Business Development Manager Susan Harvey explains: “In fact, Diamond was New Zealand’s first pasta brand and introduced New Zealanders to ‘exotic’ pasta recipes such as macaroni cheese and spaghetti with Bolognese in the 1970s. Today these recipes are staples in many Kiwi households.” With pasta being a familiar, easy, economical comfort meal, demand soared over lockdown and suppliers struggled to keep up with demand. Harvey says: “Diamond pasta was the fastest growing brand in the last quarter with sales up 86.8%1 and during the peak week demand was up 187%2! Great to see Kiwis supporting Diamond, which is still Kiwi owned today. The Wilsons team worked 24

FMCG BUSINESS - AUGUST 2020

extremely hard to secure Diamond pasta from Italy for New Zealand during this time and continue to work on supply as demand returns to more normal levels. “With stretching the family budget top of mind for many at the moment, Diamond rice risotto is a great

“DIAMOND PASTA WAS THE FASTEST GROWING BRAND IN THE LAST QUARTER WITH SALES UP 86.8%” SUSAN HARVEY, MARKETING AND BUSINESS DEVELOPMENT MANAGER

[ category insights ]

affordable family meal choice. It comes in a wide range of flavours and each pack makes enough to feed a family. You can choose to add in ingredients of your choice, making it a great way to use up any leftovers you may have. The packaging has just been updated and now includes handy little icons to help consumers to shop for their dietary needs, from plant based to vegan, to vegetarian and gluten free there is something for everyone. “Times have changed since World War II, but Diamond remains Kiwi owned and our focus of ‘eating well and hearty without breaking the bank’ continues to be very relevant today,” says Harvey. 1. I RI TKA Dollars Growth % PP Quarter To 31/05/20 Diamond versus, Key brands 2. IR NZWW Diamond pasta unit growth % 4 weeks to 5/4/20 versus year ago

PAM’S Pasta packaging scores Bronze award Even amid COVID-19 uncertainty, the Vertex International Design Awards carried on judging, with Foodstuffs’ own label brand Pams one of the big winners. Awarded Gold for Pams confectionery, Silver for the redesigned Pams brand and Bronze for Pams Chilled pasta, the Vertex judges were clearly impressed with the own label brand’s new look. As was Marketing Manager Melissa Steffensen of Foodstuffs Own Brand Limited. “Customers love Pams and want to easily find and identify it on shelf,” says Steffensen. “Our new packaging design clearly trumpets the brand, ensuring no matter what aisle of the supermarket you are shopping in, you can easily find Pams.” All of the winning designs were masterminded by Senior Designer Justine Rankine of Brother Design. With brand extensions into the more premium and more value-focused tiers above and below it, Brother had been given the critical task of creating a new packaging design system for the core Pams brand. “The design needed to communicate affordability, quality and functionality across a diverse range of products and formats,” says Rankine. “The look we devised aims to communicate quality, building

trust and consumer confidence through the use of a consistent brand architecture across all packaging.”

Did you know? As a cereal grain, rice is the most widely consumed staple food, especially in Asia and Africa. It is the agricultural commodity with the third-highest worldwide production. Rice can come in many shapes, colours and sizes. Rice is the seed of the grass species Oryza glaberrima (African rice) or Oryza sativa (Asian rice). Rice is normally grown as an annual plant, although in tropical areas it can survive as a perennial and can produce a crop for up to 30 years. Rice cultivation is labour-intensive and requires plenty of water. However, rice can be grown practically anywhere, even on a steep hill or mountain area with the use of watercontrolling terrace systems. Although its parent species are native to Asia and certain parts of Africa, centuries of trade and exportation have made it commonplace in many cultures worldwide.

“CUSTOMERS LOVE PAMS AND WANT TO EASILY FIND AND IDENTIFY IT ON SHELF,” MELISSA STEFFENSEN, MARKETING MANAGER

Source: NIELSEN SCANTRACK Total Supermarkets - MAT 12/07/20 Val $ Sales

Val % Chg YA

TOTAL RICE, NOODLES & PASTA

202,131,576

15.7%

RICE

82,691,740

12.9%

NOODLES

50,665,724

18.3%

DRY PASTA

47,048,389

17.9%

FRESH PASTA

21,725,724

15.5%

FMCG BUSINESS - AUGUST 2020

[ good business ]

HELP SAVE THE KĀKĀPŌ! Kiwi brand Mother Earth is calling on New Zealanders to help create a new home for the critically endangered kākāpō. A new initiative by Mother Earth is raising funds to help bring the iconic native bird to a mainland sanctuary for the first time ever – a significant step in growing the population. Mother Earth is releasing limited-edition packs of their popular Baked Oaty Slices and honey, featuring the loveable and cheeky kākāpō. For every limited-edition pack purchased, Mother Earth will donate 10 cents to Sanctuary Mountain Maungatautari. The funds will help create a safe and suitable habitat for kākāpō in Mother Earth’s home of the Waikato, at ecological reserve Sanctuary Mountain. “Kākāpō are under threat of extinction, and Mother Earth is committed to helping this native bird thrive. We are calling on Kiwis to help save the kākāpō by purchasing the limited-edition packs, so we can support our friends at Sanctuary Mountain to create a secure home for these taonga,” says Mother Earth CEO Andrew Smith. There are only 210 kākāpō in the world today and they all currently survive on small offshore islands of New Zealand. While this flightless parrot is critically endangered, the increasing population of kākāpō is outgrowing its island refuges. That’s why there are plans to find new suitable habitats like Sanctuary Mountain.

Sanctuary Mountain is working with key stakeholders including the Department of Conservation’s Kākāpō Recovery Group and Ngāi Tahu, to bring kākāpō to their ecological sanctuary. This project is part of ongoing support of Sanctuary Mountain by Mother Earth, a proud partner of the conservation education programme that Sanctuary Mountain provides to over 4,500 students and teachers every year. Limited-edition Mother Earth Baked Oaty Slices and honey products featuring the cheeky kākāpō are available from July. For more information head to www.motherearth.co.nz/kakapoexpansion-project .

GLEN 20 SUPPORTS NEW ZEALAND’S MOST VULNERABLE As we grapple with the significant impact of the pandemic, the support provided by New Zealand Red Cross to vulnerable Kiwis has never been more important. Recognising this, iconic disinfectant brand, Glen 20, has partnered with Red Cross to help drive much-needed donations for the not-for-profit organisation and bolster their ongoing efforts to help protect the wellbeing of New Zealanders during these challenging times. The purpose-led initiative from RB Hygiene NZ uses the power of the Glen 20 brand to encourage New Zealanders to get behind Red Cross in an emotive national TV campaign. Marc Reitsma, Country Manager at RB Hygiene NZ, said: “At RB Hygiene, we are passionate about meaningful, purpose-led partnerships that help us deliver on our commitment to create a cleaner, healthier world – a commitment that sits at the very core of our business, and will continue to do so as we all work together to overcome RB Hygiene has donated more than $65,000 worth of Glen 20 and Dettol products. COVID-19.” “When ideating different ways our business could make a positive contribution to the community most vulnerable in Niamh Lawless, Secretary General of New Zealand Red Cross, this pandemic – the synergies between Glen 20 and New Zealand Red said: “We’re very pleased to have the support of RB as we work to Cross became very clear. Above all, we are motivated by a common and address the many challenges the pandemic presents to our vulnerable incredibly important goal, to help protect New Zealanders,” he added. communities. RB’s product donations have been a great addition to our In addition to the TVC, RB Hygiene has donated more than $65,000 Red Cross Parcels and their TVC will provide a great boost to awareness worth of Glen 20 and Dettol products to include in more than 5000 around our work and donations.” Red Cross Parcels which are being distributed to vulnerable communities For further information on New Zealand Red Cross or to donate, around New Zealand. visit https://www.redcross.org.nz/ 26

FMCG BUSINESS - AUGUST 2020

[ export ]

OTIS OAT MILK-ING IT Since launching less than a year ago, Otis Oat Milk has exceeded all expectations. Founders Tim Ryan and Chris Wilkie were raised on farms in New Zealand and after ten years in Europe they decided to return home. “Seeing the changing consumer that is evolving globally who is plugged into environmental and health issues, we knew New Zealand had to evolve its agriculture export makeup to ensure our farmers are more future-proofed for this change,” Ryan says. The pair began product development in 2017 and launched their oat milk in April 2019. Demand surged and it is now sold in more than 150 cafes. “This [growth] is limited only by the small amount of milk we can produce in our current manufacturing facility,” Ryan says. In response to overwhelming demand, and with an eye on international markets, the company is set to build a large-scale Dunedin factory (called ‘The Plant Plant’) that can produce 25 million litres of oat milk a year. The factory will be New Zealand’s first dairy alternatives facility and its sheer size will require an investor to join later in the year. Otis is also set to release a retail version of its milk to supermarkets in Q3 of this year and at that point, it will massively scale up volume and supply to take Kiwi oats to the world. Ryan says he’s proud to have seen the company come to life. “From the idea inception to now seeing it nationwide in cafes is something that makes all of us proud. “We feel so strongly about the need to raise the debate around needing to diversify our land use as a country, to make us more modern and futurefocused, and it’s satisfying to see the brand deliver on disrupting the conversation as that’s our core mission.” Oat milk is a fast-growing plantbased category that is expected to be worth about $55 billion globally in the next four years. Despite widespread competition with other milk alternative businesses, Otis Oat Milk has seen significant growth. “I think its Otis Oat Milk Co-Founder Tim Ryan testament to the

brand that our message has resonated so well with consumers. The fact we are the market leader in New Zealand, and that we have the most incredible, nutrient-dense hero ingredient in our oats, means we stand on a strong footing for future success,” says Ryan.

Obstacles “We have had to forge our way through barriers at every turn,” Ryan admits. “There is no viable scaleup solution in New Zealand that hasn’t previously had dairy used in the pipes - this wasn’t acceptable for us and we saw very clearly that the brands’ mission had to then focus on creating a pathway for Kiwi plant-based brands to scale up and access the international market. “This is a large and complex issue to solve, on top of maintaining the running and growth of the brand to date, it’s been hugely challenging but equally incredibly satisfying.” The business has been completely self-funded to date, and recently took on an investor for a small share of the business. Ryan says its important entrepreneurs start with a purpose that adds something to the world and do so with the mindset it will be the hardest thing you undertake. “Being a so-called entrepreneur is simply understanding the creative process, it’s relentless problem-solving. Stay humble and ask for help from mentors that have skill sets in key facets of your business.” Ryan believes Kiwi companies have a significant advantage over competitors and for that reason the company has its sights set on exporting. He says: “If we are to deliver on our mission of diversifying land use and adding value to farmers farm gate prices, then we must export millions of litres of plant-based goodness to the world. “We have plans beyond just oat milk and feel New Zealand can lead the world in plant-based food production. The initial focus is on Australia and Asia, seeing they are on our back doorstep.”

Catherine Beard is Executive Director of ExportNZ, which serves its members via regional offices throughout the country. To find your nearest office go to www.exportnz.org.nz

“OAT MILK IS A FASTGROWING PLANT-BASED CATEGORY THAT IS EXPECTED TO BE WORTH ABOUT $55 BILLION GLOBALLY”

FMCG BUSINESS - AUGUST 2020

[ legal advice ]

LEASE IS MORE

A PRACTICAL APPROACH TO RENEGOTIATING YOUR COMMERCIAL LEASE

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. www.swlegal.co.nz

“YOU WILL STILL WANT TO MAINTAIN GOOD RELATIONS WITH YOUR LANDLORD SO PICK YOUR BATTLES WISELY.”

If you are a commercial tenant this may be an opportune time to renegotiate some of the terms of your lease as part of your next lease renewal. In the wake of lockdown, the demand for commercial premises has arguably been slowing. With another recession potentially on the horizon, many landlords will prefer to lock in their existing tenants for another term rather than risk the premises sitting vacant, even if that means agreeing to a reduced rental or shorter renewal periods. Under the Auckland District Law Society form of lease, a tenant can exercise their right of renewal as early as they like, provided they notify the landlord in writing no later than 3 months before the renewal date. You may be able to use the downturn in the market as leverage to negotiate more favourable lease terms in exchange for renewing your lease early (or at all). When notifying your landlord in writing that you intend to renew the lease, you need to make it clear that such renewal is subject to the landlord agreeing to your proposed terms. The terms you choose to renegotiate will depend among other things on your business, your current financial position and goodwill in the location of the premises. As a general guideline, you could consider requesting one or more of the following variations: • Rental and Opex: A rent reduction; a gross lease; or fewer carparks. You may also consider reducing the frequency of any rent reviews. • Rights of Renewal: If your lease provides for two rights of renewal of three years each (i.e. 3 x 3), consider requesting a shorter renewal term such as two rights of renewal of one year and two years respectively (i.e. 1 x 1 x 2 x 2). This will give you an easier exit strategy if you are concerned about the future of your business, while still preserving the duration of the lease in the future. • Limitation of Liability: Limit your liability (or your guarantor’s liability) under the lease to 3 months gross rental. • Make Good Provisions: Remove some or all of the make good obligations in the lease to reduce your exit costs if the lease expires or is terminated. • Sublet: If your business operations have become smaller and you require less space, you may consider subletting a portion of the premises.

FMCG BUSINESS - AUGUST 2020

If your business has been marginal this year and you are concerned about your ability to carry on, you may decide not to exercise your right of renewal at all and simply allow the lease to rollover to a monthly tenancy. This means that you or your Landlord can cancel the lease at any time by giving one month’s written notice to the other. This provides an easy exit strategy if you are concerned about the solvency of your business in the immediate future, although you risk the landlord terminating your lease at short notice. Before you opt for a monthly tenancy, consider the following: • Has your business committed to any fixed term supply agreements? • Will you be able to meet your contingent liabilities if your business is interrupted while you find alternative premises? • Are you considering selling your business and assigning the lease in the future as part of the goodwill? When it comes to renegotiating the terms of your lease, target one or two variations that will provide you with the most comfort going forwards. You will still want to maintain good relations with your landlord so pick your battles wisely. We recommend that you engage a lawyer to facilitate negotiations on your behalf to streamline the process and to distance yourself from the negotiation process to avoid a breakdown in the tenant-landlord relationship.

[ FGC ]

WHAT PRICE CONTAINER RECYCLING? As New Zealand settles into the “normal” of a smaller, hermit economy, many people outside our industry have the impression all food and grocery suppliers did extremely well during the lockdown as a result of supermarkets being granted a complete duopoly. While it’s true some enjoyed greater sales, the reality is suppliers exposed to tourism, hospitality, and food service have been hit hard. Food businesses supplying other outlets were also caught with nowhere for their products to go as butcher shops, green grocers and farmers’ markets were closed during lockdown. The impacts have been major. To deal with lost revenue and pessimistic forecasts, many FMCG businesses have moved executives to four-day weeks, shorter days, sent them on compulsory leave, slashed spending and even cut jobs. I know of teams accepting pay cuts as everyone contributes to the survival of the business. It’s clear food and grocery manufacturers, like companies across the wider economy, have been hit as household budgets have also felt the economic downturn. With the abrupt halt to international tourism, most immediately think of hotels, tourism operators and airlines, but food is a major part of the tourism experience too. Tourists usually enjoy the great New Zealand food and beverage experience from one end of the country to the other. But suddenly there are hundreds of thousands of fewer mouths to feed each month, and that’s not going to change anytime soon, meaning the market must either contract or find customers elsewhere. Beverage manufacturers have also been hit hard, and many artisan, craft and smaller companies are at risk of closure. Amid all this, a Government-appointed working group was finalising a report on the design of a beverage container return scheme (CRS) to reduce packaging pollution and take us closer to a circular economy. The report of the CRS Design Working Group was due in July, with the aim of making an announcement before the election. The idea is in line with the aims of the Food & Grocery Council and its members, who recognise New Zealand needs to be doing more recycling, reusing and composting of packaging. Our Sustainability Committee is doing some detailed work across this area. However, we were left off the working group, which is dominated by representatives of local body councils, despite industry having the expertise and

experience after working on similar schemes overseas. But as I write, there are serious problems with the scheme: its proposed design and the size of the redemption the councils want as they push for a bigger piece of the revenue pie. Bureaucrats want a redemption of 20 cents – double that collected across Australia. When you add around 10c for costs and bureaucracy, and plonk GST on that, it’s not hard to work out the cost of the scheme to the industry and consumers will be very high – probably more than 35c per drink container. At that rate, the retail price of a 24-pack of beer would increase by more than $8. It’s estimated the scheme will cost much more revenue than it needs to run it, with councils pocketing the gains. Not only that, but the working group couldn’t even claim the redemption needed to be 20c to incentivise consumers to return containers, because in other countries 10c works perfectly fine: South Australia’s collection rate is 80% and Sweden’s 85% - the same rate our Government wants. The industry is committed to playing a major part in container recovery, but it wants it done in an effective, accessible, and user-friendly way. In Australia, where several states have had such schemes for years, costs are met by industry and profits go back into the community. That’s a perfectly adequate system. But it seems industry is the only one not wanting an expensive scheme that will boost the price of everything from beer, to water, to wine, to milk – putting further pressure on companies struggling to get back on their feet while councils sit back and boost their coffers.

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

Container recovery schemes have worked well in other countries for years.

FMCG BUSINESS - AUGUST 2020

[ marketing ]

A VIRTUAL SUCCESS

HOW PRODUCT LAUNCH STRATEGIES EVOLVED DURING COVID-19

Susie Thomson Group Account Director & NZ Lead, Aruga NZ aruga.co.nz

“BRANDS WERE FORCED TO SCRAP PRODUCT LAUNCH PLANS THEY HAD FORMULATED OVER MONTHS OF RESEARCH AND PLANNING AND FIND NEW AND INNOVATIVE WAYS TO APPROACH THIS INTEGRAL PR TACTIC.” 30

You only get one shot at making a good first impression. Brands launching a new product to market know the value of crafting a multi-layered PR strategy to propel their new, heavily invested product into the marketplace with a splash. Their clear and simple objective is to get their product in front of the eyes and into the hands of customers. All that changed when COVID-19 struck and how we did business and the way our customers went about their lives was disrupted. Brands were forced to scrap product launch plans they had formulated over months of research and planning and find new and innovative ways to approach this integral PR tactic. The result was a rise in virtual live launches. This isn’t a new tactic and tech brands such as Apple, Google and GoPro have virtually launched products in real-time for many years. Facebook and Instagram made this option more accessible for brands outside the tech space when they launched their respective live-streaming functions to users from 2016. There are clear financial benefits to adopting this technology for publicity purposes but more so, it harnesses and amplifies the connectivity of the world we live in, especially in 2020. Facebook reports its users are four times more likely to watch live-streamed content than prerecorded video, live videos1 perform better within the platform’s algorithm and they generate more engagement than pre-recorded content. Unsurprisingly, Instagram live stories also skyrocketed during COVID-19 lockdown with a 79%2 increase in use. Savvy brands were quick to identify the opportunities live-streaming presented for engaging

Whittaker’s launched its new Cocoa Lovers collection with a digital tasting event in June.

FMCG BUSINESS - AUGUST 2020

with their online communities while COVID-19 restrictions were in place. Sports nutrition brand Musashi halted its major activation activity and transitioned the content online. The brand capitalised on its engaged Instagram community to host eight live-streamed home workouts with one of its ambassadors, Kiwi MMA kickboxing athlete Carlos Ulberg. Followers lapped this up and it has become the brand’s highest-performing social campaign in terms of engagement across Australia and New Zealand in the past 18 months. At-home workouts weren’t the only form of selfcare to enjoy a resurgence during lockdown. New Zealanders admitted to indulging in a spot of comforteating, baking up a storm and treating themselves to luxuries like chocolate and champagne at home while restaurant and bar trading was restricted. With this in mind, New Zealand icon Whittaker’s chocolate opted to proceed with the launch of its new Cocoa Lovers collection with a digital tasting event in June. New Zealand’s food media and influencers were invited to a live tasting hosted by brand ambassadors Jacquie Brown and Peter Gordon. If like me, you follow any NZ foodies on social media you’ll recall seeing the launch taking over your Instagram story feeds. I counted 25 individual influencers sharing the chocolatey moment, which had me raiding my own stash. This event kicked off a series of product touchpoints and it held all of the milestones of an intimate and decadent affair. Well done Whittaker’s, well done. 1. Facebook insights 2. Business Insider Australia

[ innovation ]

COUNTDOWN RELEASES FIRST NATIONWIDE GROCERY SHOPPING APP Countdown has launched grocery shopping directly from its myCountdown app across the country, the first time Kiwis nationwide can shop seamlessly from a mobile app, anytime and anywhere they like. Countdown’s General Manager Brand and CountdownX, Sally Copland, says with more than 200,000 new registrations for online shopping during New Zealand’s lockdown, fast-tracking the in-app shopping feature for nationwide roll-out was crucial given the role mobile plays for New Zealanders. “When we launched the myCountdown app in 2018 it was mainly to help customers with their in-store shopping needs, showing them where things were in store and helping build simple lists. “Times have changed and mobile is the device of choice for almost all of us, for almost everything. Making purchasing seamless from the app no matter where you live is a critical part of providing a world-class online shopping experience and that’s what we want for all Kiwis,” says Copland. The myCountdown app’s popular shopping list feature remains front and centre, with customers now able to switch between devices, add to their list when they remember something in the middle of the night, and then order for pick up or delivery directly from the app. Countdown has been a pioneer in the Kiwi eCommerce space since 1996 when it launched the first iteration of online shopping, albeit ordered by fax. Nearly 25 years on, New Zealanders are continuing to embrace the convenience of online shopping; at the end of March 7.9% of Countdown’s sales were online, and for the last week of the month just before lockdown this grew to 11% of sales, making it the company’s largest ‘store’. “Over the last few years we’ve better connected the myCountdown app with Onecard, we’ve made loyalty rewards digital and able to be accessed automatically, and we’ve gone digital with our mailer and specials. Our goal is to continue to innovate and make it easy for people to shop the way they want, when they want,” says Copland.

Countdown’s General Manager Brand and CountdownX, Sally Copland

Countdown’s dedicated digital team, known as CountdownX, is already working on the next steps for the app including the option to share lists across accounts, which will give couples, families and flatmates the ability to collaborate on their household needs. In the last few months, Countdown has also opened the country’s first dedicated eStore in Penrose, Auckland, developed Countdown’s Priority Assistance Service for Kiwis most at risk of COVID-19, introduced Olive the chatbot to help with 300,000 customer conversations in April, and said kia ora to Kai the safety robot at Countdown Rototuna.

myCountdown app features • Available for online shopping nationwide • Shopping list feature for in-store customers • In-store layout function that is tailored to your local store, so customers know where everything is - particularly helpful when you’re visiting a new store • Personalised specials • Digital Onecard for use online and in-store • Loyalty rewards • Access to Olive, the Countdown Virtual assistant for answers to customer queries and online refund requests.

FMCG BUSINESS - AUGUST 2020

[ profile ]

NO MORE AMBULANCE AT THE BOTTOM OF YOUR COMPLIANCE CLIFF QTRACA is innovative cloud software built for food manufacturers with the objective of saving them time and money by helping them manage all quality assurance and traceability requirements. Removing paper from the factory floor and replacing it with digital forms enables a business to analyse data immediately, be alerted when data is out of spec, notify users on certain events, and analyse trends in their data. All of which is hard if not impossible with paper. Risk is not only reduced by having records stored securely on-line, avoiding events such as flooding and fire, but by knowing exactly when something happens Mike Cook so it can be rectified immediately. Products can easily be traced and recalls performed using QTRACAâ&#x20AC;&#x2122;s traceability module. Traceability extends to WIP batches, and rework. Inwards good receipting can be enhanced using image processing to automatically read packing slips. Automating environmental monitoring, such as temperature, is simple with QTRACA. Temperature readings can be taken real-time

and can alert users when a reading is out of spec. Training is an essential part of any manufacturing business. QTRACA can provide training quizzes to staff, in any language, through its training portal. This portal can also be used to provide access to standard operating procedures and other essential training material. Complaints can be managed and analysed seamlessly within QTRACA. Non-conformances can be created from complaints, and then actioned via corrective or preventative actions. One of the biggest benefits of QTRACA is being able to gain visibility into your business from anywhere, at any time. This enables you to be pro-active, finding issues before they become costly mistakes requiring a product recall, or product to be dumped. Get in touch now to find out how simple and affordable it can be to switch to a paperless environment today. Contact Mike Cook Ph: 021502196 E: mike.cook@qtraca.com W: www.qtraca.com

www.qtraca.com

FOOD SAFETY SOFTWARE - Quality Assurance - Traceability - Paperless Forms - Temperature Monitoring - StaďŹ&#x20AC; Training and Induction - Complaints Management

Cloud Software to Help Food Manufacturers Save Time and Comply LETS TALK Phone: 021 502 196 Email: mike.cook@qtraca.com

[ profile ]

LOOKING FOR KOREAN PRODUCTS? KOREA PREMIUM PRODUCT ONLINE MEETING PLAZA KOTRA(Korea Trade-Investment Promotion Agency) is a not-for-profit Korean government agency, promoting international trade and investment since 1962, including an Auckland branch since 1973. KOTRA are holding a Korean Premium Product Online Meeting Plaza, which covers Korean foods, beauty products and consumable goods for potential Kiwi buyers.

FOOD & BEVERAGE

KOREAN BEAUTY PRODUCTS Thanks to advanced technologies in the beauty and cosmetics industry, Korean products are loved by many consumers around the world. They are excellent in quality and offer a competitive price range. Products include mascaras; eyeliners; foot cream; facial mask sheets; toner; moisturizer; sun blocks and many more. Suppliers include Ultru; O and Young; Risus; Intercore; Merlin; The skin factory; and Gustar.

IF YOU ARE LOOKING FOR KOREAN PRODUCTS, PLEASE CONTACT US: kelly@kotra.or.kr phone (09) 373 5792

KUNDAL KUNDAL

KUNDAL

Beauty &Personal Care

Instant Korean food is booming in global groceries and KOTRA have introduced seasoned laver snacks, instant coffee-mix, various dumpling products, red ginseng and health supplements as well, from companies such as Songhwa Foods; Hanmandoo; Gumsan mall; Namyang; and Kc Woori.

MARKETING SUMMIT Ellerslie Racecourse, Auckland

Register Now TUESDAY 29TH SEPTEMBER 2020 The one-day marketing masterclass for every FMCG professional FOR MORE INFORMATION M: +61 415 404 264 E: bcurtis@intermedia.com.au www.fmcgsummit.co.nz

Early Bird Tickets available, limited time only

Brought to you by the team behind FMCG Business

[ events ]

NEW MASTER JUDGE FOR NZ CHAMPIONS OF CHEESE AWARDS The New Zealand Champions of Cheese Awards have announced the appointment of new Master Judge, Scott Bolch. Run by the New Zealand Specialist Cheesemakers Association (NZSCA), judging is set for February 2021. Trophies will be announced at the NZ Champions of Cheese Awards in Hamilton on 5th May 2021. Bolch has worked in the dairy industry for more than 27 years and has used his experience to judge various cheese and dairy competitions in his spare time. For the past eight years he’s been on the judging team for The Australian Grand Dairy Awards. He’s also been a regular judge at the NZ Champions of Cheese Awards, judging over the past four years. Bolch, who lives in Tasmania, works for dairy industry supplier CHR Hansen as Australia and New Zealand Business Manager of Food Cultures and Enzymes. “It’s a privilege to be invited to undertake this role. I look forward to supporting the judges during the Awards assessment, being a sounding board and providing technical expertise to help them judge. I think the NZSCA Board has done a tremendous job reinvigorating the technical aspects of the competition and attracting competent and passionate judges," Bolch said. “Good product starts with the environment and New Zealand has lush green pasture and happy cows. When their premium milk is blended with quality ingredients, production excellence and strong systems it makes amazing cheese. On the global scene, New Zealand cheese is up there with the very best. As the master judge I have one of the best jobs in the country tasting and critiquing New Zealand’s finest cheeses.” Bolch acknowledged former Master Judge, Russell Smith who headed up judging for eight years. “I’ve been a technical judge alongside Russell for many years in Australia and New Zealand and hold his knowledge in high regard.”

The FMCG Business Marketing Summit returns in September.

WHAT’S ON IN 2020 AUGUST 21-23 THE BABY SHOW Auckland, NZ www.babyshow.co.nz

SEPTEMBER 22-24 FOODTECH PACKTECH Auckland, NZ www.foodtechpacktech.co.nz 26 ICE CREAM AWARDS JUDGING Auckland, NZ www.nzicecream.org.nz 29 FMCG BUSINESS MARKETING SUMMIT Auckland, NZ www.fmcgsummit.co.nz

OCTOBER

Scott Bolch is the new Master Judge for the NZ Champions Of Cheese Awards.

30 THE FOOD SHOW Wellington, NZ www.foodshow.co.nz

NOVEMBER 4 NZ ICE CREAM AWARDS GALA DINNER Auckland, NZ www.nzicecream.org.nz 14 THE GROCERY CHARITY BALL Auckland, NZ www.grocerycharityball.org/ 14-15 THE CHOCOLATE & COFFEE SHOW Auckland, NZ www.chocolatecoffeeshow.co.nz/

NZ CHEESE MONTH https://nzsca.org.nz/cheesemonth/

8 NZ FOOD HEROES AWARDS Auckland, NZ www.foodawards.co.nz/heroes

19-22 THE FOOD SHOW Auckland, NZ www.foodshow.co.nz

Visit the websites and contact the event organisers for further details and updates. To have your event listed in FMCG Business email: trubanowski@intermedianz.co.nz. FMCG BUSINESS - AUGUST 2020

[ events ]

FOODTECH PACKTECH IS ON THIS SEPTEMBER!

The lockdown taught us all a lot. For many of us we learned to pivot our businesses quickly to ensure their survival. But that’s the Kiwi way, No.8 wire and all the rest of it, we are survivors in this country and whilst being so far away from the rest of the world has previously been a hindrance for us in exports or importing, now it feels like more of a blessing. One of the hardest hit industries along with tourism and airlines, was by and large, the events industry which came to a halt overnight. Not to mention all of the suppliers and supply chains that fed this industry, and so the impact was felt hard and fast. But after the fantastic efforts of our team of 5 million, New Zealand is now on the road to recovery. The more we can support local businesses the faster we can move along this journey. One company that does just that is XPO Exhibitions who annually would usually host around 17 events, including Foodtech Packtech and The Materials Handling and Logistics Expo. “By supporting our trade shows, we know we can help get New Zealand moving again. Trade shows are critical to rebuilding economies globally. Foodtech Packtech, which happens in September this year, is one of our strongest shows representing a sector strategically vital to NZ’s economic future,” says Managing Director Brent Spillane.

“During lockdown we found ourselves championing ways to connect our exhibiting suppliers with buyers who visit our shows, by creating Source Online. With the world going into crisis mode and supply chains severely interrupted, we heard stories of exhibitors struggling to find supplies they needed, but through this platform we were able to connect buyers and sellers so they could continue manufacturing at the rate they needed to,” says Spillane. “We are very excited that we can now push the go button on our scheduled events for the rest of the year, and we would love you to support us by visiting our must-attend shows.”

FOODTECH PACKTECH is on 22-24 SEPTEMBER 2020 in Auckland, New Zealand. To enquire about Foodtech Packtech or The Materials Handling and Logistics Expo contact Deb Haimes deb@xpo.co.nz or drop her a line on 021 487 552. To register to attend visit www.foodtechpacktech.co.nz . To find out more about XPO events visit www.xpo.co.nz or get in touch with them info@xpo.co.nz

FMCG BUSINESS - AUGUST 2020

Out & About

nered with the market, MILO part Celebrating 85 years in ired te custom made tins insp artist Dick Frizzell to crea by Kiwi kids.

Fonterra Co-operative Group Limited has announced Peter McBride (L) as Chairman-elect, replacing current Chairman John Monaghan (R) when he retires as Director this November.

Annabel Angland from Peregrine was named Corteva Central Otago Young Viticulturist of the Year 2020, following a competition held at Otago Polytechnic Central Campus in Bannockburn.

AND

ar urist of the Ye h Young Viticult nheim. va Marlboroug Ble rte in Co e rd th ya ne me Vi Indevin beca ’s Stump Creek Rhys Hall from held at Giesen a competition 2020, following

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 3-pack ‘sampling’ of Yum Granolas (valued at RRP $50). Original, Coffee Deluxe, and Superseed Granola Clusters are all made fresh in Nelson with organic ingredients, gluten free, grain free/Paleo, high in plant-based proteins and whole food sustenance. Great for brekkie or snacks!

Just email your high res image with a caption to trubanowski@intermedianz.co.nz FMCG BUSINESS - AUGUST 2020

NEW WORLD WINE AWARDS The New World Wine Awards, one of New Zealand’s largest and most anticipated annual wine competitions, hit the road in July to host a series of regional judging events for the first time in its 18-year history. More than 1200 wines were judged over 10 days of non-stop tasting at events in and around the country’s key wine regions – a big change from the usual one-off Wellington event held each year. Hawke’s Bay, Marlborough and Central Otago were the judging hub for wines grown and made in the surrounding areas, while Auckland held the judging for local as well as international, sparkling and emerging wines. The change was designed to ensure the awards could continue safely and effectively during the country’s evolving COVID-19 response and has gone on to attract strong entries and support from wineries all over the world.

ENTRIES EXCEED EXPECTATIONS Chair of Judges Jim Harré says the judging team, made up of 18 independent wine experts from around the country, is delighted to see award entries exceed expectations and hold strong to previous records during such a challenging year for many businesses. “New Zealand’s wine industry is an incredibly important part of our economy, and like so many sectors, it has been working through

a difficult period with many unknowns. It is encouraging to see such a significant number of local wineries, as well as many of our regular entrants from Australia and beyond, put their wines forward.” He says the entry response reflects the event’s reputation for highquality, professional judging and is also recognition of the value the awards provide to winning wineries and consumers alike. “The Top 50 ranked wines will enjoy the prestige of a Gold medal that is recognised and trusted by consumers, as well as the nationwide sales opportunity through New World supermarkets. For some, particularly smaller wineries or those that rely heavily on strained export or hospitality markets, a Top 50 win can go a long way in supporting and growing their business.”

EMERGING TRENDS A growing number of emerging wines from New Zealand and overseas are encouraging high hopes for another broad range of wines in the Top 50 this year. In 2019, an Albariño wine from Gisborne and Tempranillo, Malbec, Carmenere and Grenache wines from overseas made the Top 50 and proved popular with shoppers keen to try something new. “The emerging wines are what you’d describe as ‘new to New Zealand’. Many are actually ancient varieties that are well-loved around

“THE RISE OF ROSÉ HAS RECORDED DOUBLE-DIGIT PERCENTAGE GROWTH WITH NO SIGNS OF STOPPING.”

FMCG BUSINESS - AUGUST 2020

[ drinks ] All entries to the New World Wine Awards must retail for $25 or less, and there must be at least 4,000 bottles (or 2,000 for emerging varietals) available for sale through New World stores to ensure there is plenty on hand for wine-loving shoppers to enjoy. The full results will be announced later this year.

Judging the sparkling wine category

Wine judge James Rowan

the world but have been slower to reach our shores. The red wine entries typically hail from overseas, while many New Zealand wine growers and makers are experimenting and perfecting their use of new white wine varieties.” Other trend-setting classes in the awards this year include wines that were also ‘new’ to us not so long ago and have skyrocketed in popularity over recent years. “We’ve continued to see big increases in Pinot Gris and Rosé entries in the awards, reflecting consumer demand and increasing production in New Zealand. “Interestingly, just a decade ago, neither of these were high on wineries or most wine drinkers’ radars, but both have experienced almost meteoric growth since. Pinot Gris is now New Zealand’s third most-produced variety, and the rise of Rosé has recorded double-digit percentage growth with no signs of stopping.” Judging the emerging, sparkling and international wines, as well as local Auckland entries, will be judges James Rowan from West Brook Winery, Corey Hall from Coopers Creek and Simon Fell Thornbury, while 12 other judges will assess entries in the regions. They will sniff, swirl, sip (and spit) their way through the entries by grape variety, judging each wine on colour, taste and smell. The top ranked silver and all gold scoring wines will then be reviewed by a second panel of judges in Auckland including Chair of Judges Jim Harré, Associate Chair Sam Kim and consulting winemaker Simon Nunns. The panel will review the wines to confirm consistency across regional scoring, rank the top Gold medal wines and award the Champion titles. FMCG BUSINESS - AUGUST 2020

[ drinks ]

DB REVEALS SIGNIFICANT WASTE AND EMISSIONS REDUCTIONS One of the country’s largest brewers has released its annual Sustainability Report, which details its progress towards halving its emissions by 2030 and achieving zero waste to landfill across its operations. DB Breweries removed 17 tonnes of plastic from its supply chain in 2019, part of an overall 10% reduction in its total waste since 2018. Of the remaining waste, 96% was diverted from landfill through various reuse and recycling initiatives. “We speak often about consumers needing to reduce their waste, but in my view there isn’t enough pressure and progress from companies to do the same. We are one step further up the chain, so if we can reduce what we use at our level, it will have a significant impact,” commented Peter Simons, Managing Director of DB Breweries. DB Brewery The drop in plastic use has been achieved via collaboration and innovation, with reducing stretch wrap on pallets one of the biggest changes. Tackling plastics will continue to be a priority for the company, with a focus on reducing and recycling onsite plastic, collaborating with suppliers, and sustainable packaging solutions. As well as reducing plastic and diverting waste, DB reduced its carbon emissions by 11% in 2019. As a signatory to the Climate Leaders

Coalition, the brewer has committed to halving its emissions by 2030 to align with the Paris Agreement to limit the global average temperature increase to 1.5° Celsius above pre-industrial levels. For more information on DB’s actions and commitments to Brewing a Better New Zealand, view the 2019 Sustainability Report at www.dbsustainability.co.nz.

KONO ADDS CRAFT BREWERY TO KETE OF BRANDS Kono, the Māori family-owned food and which means we are involved with our beverage business, will be adding craft beer product every step of the way – from to its kete of brands when boutique beer vineyard and farm all the way to glass and brewery, Hop Federation, joins its whānau in table,” Taulelei says. “We’ve been growing early August. hops for over a decade now, and having our Hop Federation, based in Riuwaka, will own brewery puts us in this same space – it join other Kono brands - Tohu Wines, Kono gives us opportunities for innovation and Wines, Tutū cider, Annies fruit snacks, Kiwa creativity that we don’t have as a hopoysters and Yellow Brick Road, a sustainable grower alone.” seafood supply business. Hop Federation was founded in 2013 by Kono, which takes its name from a husband and wife team, Simon and Nicki woven basket traditionally used to present Nicholas, who, along with the three-person food to guests, grows hops along with brewery team, will all join Kono. apples, pears, and kiwifruit in Motueka, Simon Nicholas, Hop Federation founder Dylan Morris, Kono Hops Manager and Simon Nicholas, and grows, harvests, processes and exports and head brewer says, “Kono is a brilliant Hop Federation Chief Brewer greenshell mussels. fit for Hop Federation. They are a family “We’re very excited to have Hop business, Te Tauihu-based, and experienced Federation join us," Rachel Taulelei, Kono CEO says. “Combining our hop growers. We share their passion for sustainability, outstanding experience in growing hops with Hop Federation’s expertise in brewing produce and making a difference in the community. The Hop Federation award-winning craft beer opens up possibilities for both businesses. team are looking forward to joining the Kono whānau, and continuing to “Our business model with mussels and wine is vertically integrated, create great beer.” 40

FMCG BUSINESS - AUGUST 2020

PALLISER ESTATE LAUNCHES THE NEW LUMINARY Palliser Estate has brought a fresh new look to their Luminary wine brand. Along with the new packaging the new Luminary wines are vegan friendly, sustainably produced and packaged in lightweight recyclable glass. The range showcases three of New Zealand’s most popular wine varieties, Pinot Noir, Pinot Gris and Sauvignon Blanc — all 100% sourced from Palliser’s vineyards in Martinborough. These new wines have been made by chief winemaker Guy McMaster who is a passionate advocate for regeneration and organics. He is a firm believer that if you look after the land it looks after you — for conscious consumers and wine lovers that translates to better quality wine that treads lightly on the earth. Under McMaster’s leadership 25% of Palliser Estate’s vineyards are under organic management with the goal that 100% of their wines will be organic by 2025. We say cheers to that! What’s in a name: The sunshine hours and clarity of the southern skies are signature traits of Martinborough. Things grow differently here because of it. Taste these wines and you get a taste of Palliser’s sun-kissed home. Hence the name The Luminary. The Manuka flowers adorning the new look labels also have a back story. If you visit Palliser you’ll find Manuka trees dotted around their vineyards — They are known as a symbol of healing but most importantly they help feed their vineyard bees and add a touch more goodness to their honey. Bees all over the world are under increasing pressure but are crucial little workers who help pollinate the plants that produce the food we all eat. At Palliser along with their organic program they have a bee program to keep their smallest workers safe.

The Luminary range consists of three delicious Vegan friendly wines, the Sauvignon Blanc and Pinot Gris both have an RRP of $18.99 and the Pinot Noir RRP is $24.99.

Sauvignon Blanc Laden with everything we love about Martinborough Sauvignon Blanc – think vibrant flavours with tropical fruit and citrus notes.

Pinot Gris Rich and aromatic our Pinot Gris is brimming with balmy summer flavours – think stone fruit and pears with a delectably long and lingering finish.

Pinot Noir Bursting with all the characters you’d expect from a classic Martinborough Pinot Noir – think red fruits, elegant, savoury and structured.

For more information contact your Negociants NZ Area Manager or email sandy@palliser.co.nz

If you own or work in independent grocery or a convenience store, service station, dairy, corner store or mini-mart, C&I NZ is the one event you should not miss in 2021.

SAVE THE DATES

ADMISSION IS FREE! ORGANISED BY: Interpoint Events Pty Ltd in conjunction with C&I Media Pty Ltd and the Australasian Association of Convenience Stores 41 Bridge Road Glebe NSW 2037 P: 1300 789 845 F: 02 9660 4419 E: exhibition@c-store.com.au W: www.c-store.com.au

Association Partner

WED 8 - THU 9 SEPTEMBER 2021 Convenience & Impulse New Zealand Expo 2021 The Cloud, Auckland

The Convenience & Impulse New Zealand Expo brings together New Zealand convenience retailers and suppliers from all banners and brands to gather for two days of education, networking and business building.

For more information visit www.candiexpo.co.nz

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FMCG BUSINESS AUGUST 2020

Articles inside

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BEST IN SEASON Fresh produce update