FMCG Business April 2021 by The Intermedia Group

fmcgbusiness.co.nz

L E A D I N G

I N D U S T R Y

N E W S

APRIL 2021 – Volume 8 – No 3

PLUS! WINTER WELLNESS n SKINCARE & HAIRCARE TRENDS n WHAT’S HOT n SOUPS n NEW ZEALAND’S LARGEST FMCG AUDIENCE

Proudly Palm Oil Free

Visit our new website to ﬁnd out more www.onlygood.co.nz

Only Good is manufactured and distributed by API Consumer Brands New Zealand. Contact your Dakota Sales Representative for more information on our collection of Natural Hand Wash, Body Wash and Body Bars, Natural Deodorant and Natural Baby Care.

contents APRIL 2021

UP FRONT

EDITOR’S NOTE

INDUSTRY NEWS

10 MOVERS & SHAKERS

SPECIAL FEATURES

FMCG BUSINESS - APRIL 2021

37 FGC Changes on the horizon 38 FEATURE Foodstuffs’ new future-proofed campus

22 PETCARE TRENDS

EVENTS

24 MARVELLOUS MILK Noteworthy dairy and plantbased milk products

40 NZ CHAMPIONS OF CHEESE MEDALS REVEALED

28 SUPER SOUPS

41 NEW ZEALAND FOOD AWARDS 2021

REGULARS

41 WHAT’S ON Events for your diary

14 WINTER WELLNESS

36 LEGAL ADVICE

16 AISLE SPY Skincare & haircare category insights

12 BEST IN SEASON Fresh produce update

35 FMCG BUSINESS PRODUCT OF THE YEAR Another finalist revealed

15 COVER STORY Find the One with Health Basics Hand and Body Washes 21 WHAT’S HOT New products in store

GOOD BUSINESS 30 PROFILES 31 INDUSTRY NEWS AND INSIGHTS

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

COVENIENCE & IMPULSE RETAILING 45 NZACS Executive Director Dave Hooker shares his outlook for 2021 46 BP EVOLVES THE SERVICE STATION EXPERIENCE The fast & fresh store-in-store food concept is continuing its roll-out

32 SHOPPING TRENDS

48 IRI The latest trends in petrol and convenience retail

34 EXPORT Strong support for unique chocolate tea business

50 ROGUE BEVERAGES Australian beverage company seeks NZ distribution partner

[ editorial ]

INDUSTRY INSIGHTS, TOP TRENDS AND NEW PRODUCTS Self-care and good hygiene are increasingly important as we try to balance health and wellness as best we can with the challenges that COVID-19 and other stressors bring. The new Health Basics Find the One range (as seen on our cover) offers high quality hand and body wash products at an affordable price and it’s made right here in New Zealand. Turn to pg 14-15 to find out more about Health Basics, along with our Winter Wellness tips. The FGC represents the major manufacturers and suppliers of food, beverage and grocery products in New Zealand. According to estimates by Coriolis Research, this sector generates over $40 billion in the New Zealand domestic retail food, beverage and grocery products market, and over $34 billion in export revenue from exports to 195 countries – representing 65% of total good and services exports. Food and beverage manufacturing is the largest manufacturing sector in New Zealand, representing 45% of total manufacturing income. Our wider industry directly or indirectly employs more than 493,000 people – one in five of the workforce. FGC Chief Executive Katherine Rich shares her insights in every issue of FMCG Business and on pg 37 she reveals three things on FGC’s agenda this year that will make a difference. Exclusive advice from industry experts, new product launches and the latest trends in fresh produce, soups, skincare and haircare … you’ll find it all in this issue of FMCG Business. We also visit Foodstuffs’ amazing new premises in Auckland and reveal another finalist for the FMCG Product of the Year Award. Please join our daily conversations on Facebook, Instagram, Twitter or Linkedin, or email us to share your news – we’d love to hear from you. Look after yourself, take care and stay safe.

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

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

ISSN 2382-1663

ON THE COVER The new Health Basics range is designed to shake up the Hand and Body Wash offerings in supermarkets with a playful new look. Find out more on pg 15.

FMCG BUSINESS IS PROUDLY ASSOCIATED WITH

FMCG BUSINESS - APRIL 2021

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 © 2021 - C&I Media (NZ) Ltd

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[ news ]

COUNTDOWN TRIALS NEW ROBOTIC LOCKER FOR ONLINE SHOPPERS As demand for online shopping “Our online customers are shows no signs of slowing looking for ultimate convenience down across the country, and choice for their grocery Countdown is trialling new shopping – demand for both contactless technology that delivery and Pick up has rapidly kicks convenience up another increased prompting us to look notch for customers. into self-service options to have Shoppers at Countdown Pick-up orders ready in a matter Cambridge and Countdown of seconds,” says Copland. Pukekohe South can now “Launching this technology in collect their groceries from New Zealand is exciting for our the country’s first robotic customers but what’s even more temperature-controlled locker. exciting is what it could mean The 10sqm units can hold for the future of grocery in New more than 30 customer Zealand,” says Copland. orders at a time. Countdown’s “We could see these compact personal shopper team places units installed at transport hubs, the orders in the temperature other handy locations or small controlled sections, and these city-central nooks, bringing the are then sorted and dispensed supermarket to customers while Shoppers at Countdown Cambridge and Pukekohe South can now collect automatically when a customer they’re on the go and where it’s their groceries from the country’s first robotic temperature controlled locker. enters their unique code. most convenient for them.” Countdown’s General The new units are just one of Manager Brand and CountdownX, Sally Copland, says the robotic Pickthe options Countdown is investigating for extra customer convenience up option is another step in Countdown’s quest to increase convenience with automated self-serve frozen, fresh and dry eLockers already installed for Kiwi shoppers. in the car parks of its Auckland City, Newtown and Takapuna stores.

[ movers & shakers ]

NEW MD AT WOOLWORTHS NZ Woolworths New Zealand’s new Managing track record of developing innovative customer Director, Spencer Sonn, has officially started focussed solutions, and strong focus on quality in his new role after spending time in stores and store experience will be tremendous assets throughout Aotearoa getting to know the team to the Woolworths New Zealand team. and the wider business. Sonn says: “It has really struck me how Spencer joined the business from passionate our team are, right throughout Woolworths Holdings South Africa where Aotearoa, and particularly when it comes to he spent the last five years as the Managing delivering a great shopping experience for our Director Food, responsible for the food and customers and building innovative solutions that innovation portfolios across more than 400 will see our business grow well into the future. supermarkets and 33,000 team members. “I’m incredibly excited to be taking on this Spencer has a 25-year grocery career new role and continuing to build on the strong Woolworths New Zealand’s new behind him, starting out on a store foundations that the leadership team have Managing Director, Spencer Sonn management graduate programme, and already put in place. The immense potential progressing through a variety of roles to gain that this business has was one of the key things valuable experience in fresh and long life food, operations and buying. that attracted me to this position, and I’m looking forward to leading and His passion for retail, first-hand experience working in stores, proven supporting the team to help realise that,” says Sonn.

FOR MORE INDUSTRY NEWS FOLLOW US ON 8

FMCG BUSINESS - APRIL 2021

CHECK OUT WWW.FMCGBUSINESS.CO.NZ

HELPS TO MAINTAIN THE NATURAL WHITENESS OF YOUR TEETH

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[ movers & shakers ]

FOODSTUFFS SI CEO TO STEP DOWN Foodstuffs South Island (SI) CEO Steve Anderson has announced he is stepping down. Anderson said: “After 21 great years, I have decided to retire as CEO of Foodstuffs South Island in February 2022, after a successor is chosen. There is never a perfect time for this type of transition, but now is the right time for me and Foodstuffs. “Foodstuffs South Island is a fantastic company. I love this Foodstuffs South Island CEO Steve Anderson company and the way we feed the South Island. I love the bigness and boldness of our bets. I love our people and their talent and our willingness to accept and embrace their range of capabilities. I love the way we embrace and work with other companies to change the retail industry and succeed together. I love the breadth and diversity of our customers and owner/operators, from consumer to enterprise, across industries, and people of all backgrounds and age groups. “The next 12 months will still see me committed to driving the cooperative forward. “Foodstuffs South Island has all its best days ahead. Even though we are going to go through a transformation, we will not miss a beat.”

NEW COUNTRY LEAD FOR COCA-COLA OCEANIA Coca-Cola Oceania is delighted to announce that Julie O’Toole has been appointed its new Country Lead for the Auckland-based business. O’Toole has worked at Coca-Cola Oceania for the past 18 years in a variety of roles, including marketing and innovation, strategy and planning, customer and commercial and franchise - while also raising two children. She is a strong advocate in the power of building high performing Julie O’Toole, Country Lead Coca-Cola Oceania teams and says: “When you spend the time on people and culture you unleash talent and the results come. And this focus, aligned with strategy, has borne very strong, multi-year business results for the team at Coca-Cola Oceania. “The theme of International Womens’ Day 2021 was ‘Choose to Challenge’. My challenge for women and businesses alike is to honour the multiple roles of women in society and continue to create flexible workplaces that bridge these roles. We will all benefit from supporting talented women in the workforce and the phenomenal roles they play in the home,” says O’Toole. 10

FMCG BUSINESS - APRIL 2021

FRUCOR APPOINTS BRAND DIRECTOR OF CSD PEPSICO BRANDS

Tania Bui, Brand Director of CSD PepsiCo brands

Frucor Suntory continues to raise the bar for CSD and sports drinks consumers with the appointment of marketing-pro, Tania Bui as Brand Director of CSD PepsiCo brands: Pepsi Max, Pepsi, Mountain Dew and 7UP. Bui will retain her Marketing Excellence & Delivery responsibilities across Frucor Suntory’s beverage portfolios in New Zealand and Australia – a position she has held for more than two and a half years. Frucor Suntory Chief Consumer Officer, Cameron Davidson says: “Tania has proven herself as one of the company’s strongest leaders with a hunger to help make drinks better for consumers.” “She brings more than 30 years’ consumer experience and commercial success – and an inexhaustible passion for winning in market and nurturing talent. “I’m really confident in Tania’s ability and passion to take our collaborative partnership with PepsiCo to the next level.” Bui, who describes herself as a passionate marketer, says the role brings with it a lot of opportunity given PepsiCo’s broad portfolio and competitive force in the market. “We’ve made some great progress with clear signals to the market that we’re here to challenge the status quo and give CSD consumers greater choice in great tasting brands and products. I’m really excited that there’s everything to play for”.

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[ fresh produce ]

BEST IN SEASON Delicious autumn fruit including a large variety of fresh-harvested apples and pears are abundant this month. Sub-tropical persimmons and feijoas are in good supply and passionfruit are also available, but supply is limited. Kiwifruit season kicks off in April with fruit being picked in Gisborne and the Bay of Plenty and these vitamin-packed gems will be available for the rest of the year. Ensure you always have shelf space for our world-famous fruit and try to stock the three main varieties – SunGold, Green and Sweet Green. Organic kiwifruit is also available in SunGold and Green varieties. Although the weather remains pleasant, temperatures have dropped so consumers will start to look towards vegetables that are eaten cooked. Root crops such as potatoes, kūmara, carrots, parsnip, beetroot, swede and yams are all appearing and should be featured this month. Complement your produce department with fresh, leafy greens like broccoli, brussels sprouts, cauliflower, kale and lettuce - and don’t forget about hot house varieties such as tomatoes, cucumber and eggplant.

Feijoas

“FEIJOAS PROVIDE A SOURCE OF DIETARY FIBRE WHICH SUPPORTS DIGESTIVE HEALTH.” 12

FMCG BUSINESS - APRIL 2021

The New Zealand feijoa season is here and runs for a short window from March until June. Fruit volumes have now risen to a level that, barring adverse weather conditions, will ensure consistent supply for the whole season. Commercially grown feijoas are of fantastic quality and if they are visible in your produce department, consumers will buy them. What to look for: Select plump, firm fruit free of blemishes. Ripe feijoas are aromatic and slightly soft to touch. Storage/handling: Store feijoas in the chiller at 4°C or display at room temperature for 2-3 days maximum. Handle them with care and avoid bruising by stacking by hand. Remove any browning fruit daily. Nutrition: Feijoas provide a source of dietary fibre which supports digestive health. They are

also a good source of vitamin C, which helps support immunity and assists the body with iron absorption from food.

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

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

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www.unitedfresh.co.nz

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*Source: healthline.com

[ health & wellness ]

WINTER WELLNESS Washing your hands is one of the easiest ways to keep yourself safe during the current COVID-19 pandemic. Wash often. Use soap and wash for 20 seconds. Then dry. This kills the virus by bursting its protective bubble. Do not touch your face, your eyes, nose or mouth if your hands are not clean.

• when your hands are visibly dirty. You can use any temperature of water to wash your hands. As long as you use soap, cold water and warm water both kill germs and viruses. Handwashing with soap and water or using hand sanitiser, when done correctly, are both highly effective at killing most germs and viruses. Hand sanitiser is often more convenient when you’re outside of the home.

How to wash your hands properly Wet hands with running water. Apply enough soap to cover wet hands. Scrub all surfaces of the hands — including the back of hands, between fingers and under nails — for at least 20 seconds. Rinse thoroughly with running water. Dry hands with a clean cloth, single-use towel or blow-drier. Wash your hands regularly, especially: • after blowing your nose, coughing or sneezing • after visiting a public space, including public transport, markets and places of worship • after touching surfaces outside of the home • after touching money • before, during and after caring for a sick or vulnerable person • before and after eating. Always wash your hands: • after using the toilet • before and after eating • after handling rubbish • after touching animals and pets • after changing babies’ nappies or helping children use the toilet

Dry your hands Germs spread more easily from wet skin than from dry skin, so drying your hands completely is an important step. Paper towels or clean cloths are the most effective way to remove germs without spreading them to other surfaces.

How to use hand sanitiser Use a sanitiser that contains at least 60% alcohol and rub it into your hands for at least 20 seconds to ensure full coverage.

Protect yourself and others from COVID-19 • Stay home if you’re sick • Keep track of where you’ve been • Wear a face covering on public transport and where recommended • Wash your hands • Cough or sneeze into your elbow • Clean surfaces • Maintain physical distancing For more information visit https://covid19.govt.nz/health-andwellbeing/

[ profile ]

NEW HANDI HYGIENE STATION FOR SUPERMARKETS Thanks to the pandemic, consumers’ attitudes toward personal hygiene have fundamentally changed. If you manage or own premises where large numbers of people visit, then you’ll be aware of the need to show your customers that you take their health and safety seriously. Custom designed in New Zealand to cater for high foot traffic locations, the Handi Hygiene Station is a foot pedal operated hand sanitiser dispenser that can serve up to 20,000 people without requiring any intervention or management from your staff. The guys at Handi monitor the levels and even fill it 14

FMCG BUSINESS - APRIL 2021

up for you! It is the only set and forget, touchless, bulk hand sanitiser available. “Our customers comment on how easy the units are to operate and are especially pleased with the touchless pedal operation. The units have proven to be invaluable during this COVID-19 pandemic period,” says Kesh Bhanabhai - Operations Manager at PAK’nSAVE Silverdale If maintaining high health standards in your store is important to you, call Handi Hygiene on 09 974 1471 or email info@handi.co.nz to arrange a free trial.

[ cover story ]

FIND THE ONE WITH

HEALTH BASICS HAND AND BODY WASHES

It’s been a big year as we all continue to balance our health Fletcher explains: “The new Health Basics range and wellness as best we can with the challenges that offers two great Body Wash sizes: 375ml and 950ml, COVID-19, juggling work and family-life, and other as well as Hand Wash Pumps (including new stressors bring. The trend of self-care shows no sign Foaming) and large format Hand Wash Refills 1L. • Made in NZ – made of slowing down, with shoppers turning to skin All this, plus our existing Bath Soaks, Scrub by Kiwis for Kiwis and body care products to support this. Making Soap Bars and an efficacious, convenient time for even the smallest bit of “me time” each 140ml Hand Sanitiser. • Soap & Paraben Free day is key to staying healthy and positive. “Being made in New Zealand means • Natural Moisturisers “At Health Basics we wanted 2020 to leave an Health Basics brings you quality formulations exciting legacy and decided it was time for some you can rely on, harnessing some of the best • Great range fun,” says Senior Brand Manager Julia Fletcher. of nature’s extracts and leaving out nasties • Amazing fragrances “We are proud to introduce our new Health such as MIT and EDTA to be kinder on your Basics range to shake up the Hand and Body Wash skin. The range is specially formulated to be soap offerings in supermarkets with our playful new look, free, paraben free and made with 100% natural giving you the chance to Find the One. moisturisers, leaving you and your family’s skin clean, “The new Health Basics Find the One range captures our fresh and rejuvenated. strength in making high quality Hand and Body Wash locally, at an “At Health Basics we bring a bit of fun to your kitchen and affordable price for you and your family. Formulated by Kiwis for Kiwis bathroom to make every day brighter. right here in New Zealand since 1990, Health Basics offers an incredible “Our Find the One Hand and Body Wash range features fragrances range of aromatic scents to suit the whole family – even the Kids!” so good you’ll struggle to just choose one! Support local with Health Looking for an uplifting, refreshing start to the day with delicious Basics, proudly made in New Zealand.” Peach? Or why not try washing away the day and escaping with Visit www.healthbasics.co.nz for more information and follow us nourishing, relaxing Coconut? Health Basics has the One for you! on Facebook and Instagram: @healthbasicsbodycare FMCG BUSINESS - APRIL 2021

AISLE

SPY What’s driving sales in skincare and haircare? Local suppliers share their news and hero products.

“NATURAL SKINCARE IS DRIVING CATEGORY GROWTH” A’KIN BRAND MANAGER NINA BONICA

FMCG BUSINESS - APRIL 2021

What is right on trend, pure, natural and made with the highest quality ingredients designed to nourish and enhance the natural appearance of our skin? Meet the A’kin range with high levels of active botanical ingredients, delivering results that are backed by clinical studies and consumer user trials. No nasties – no parabens, sulfates, silicones, mineral oils, fillers, artificial colours or preservatives. Brand Manager Nina Bonica says, a core range of A'kin Skincare products are to be ranged in 180 Countdown stores from April, including the following products: • Nourishing Cream Cleanser & Toner 140ml • Moisture Rich Rose Mist Toner 150ml • Moisture Rich Facial Moisturiser 150ml • Certified Organic Rosehip Oil 20ml • Hydrating Antioxidant Day Cream 50ml “We also have a range of Skincare and Haircare products that have been in New World and PAK'n'SAVE North Island stores since October 2020.” She adds: “Total Skincare Grocery is in growth +5.4% and is outperforming Pharmacy, which is declining -3.2% YOY. Natural Skincare is driving category growth,

total value increase +$2.3m vs LY (IIS Grocery Sale Analysis 04/10/2020)."

NZ’s #1 selling natural skincare brand* steps up in sustainability Senior Brand Manager Shannon Green told FMCG Business: “essano™ is now a well-known household brand, recognisable for its affordable Rosehip Oil skincare range. The brand is only seven years old, yet it is one of NZ’s fastest-growing FMCG brands. It is the #1 brand in NZ natural skincare and looks set to

A range of natural and powerful Australian skincare

“BOTH NEW RANGES HAVE BEEN SPECIFICALLY DEVELOPED TO PROVIDE UNIQUE OFFERS THAT ENCOURAGE INCREASED SPEND” GLOW LAB BRAND MANAGER FENELLA BROWN 18

FMCG BUSINESS - APRIL 2021

overhaul L’Oreal and Olay as #2 in total skincare in NZ supermarkets.” Now in its 8th year, essano sells a product every nine seconds, says Green. And to step it up a notch, they have a new sustainable source of their Certified Organic Rosehip Oil. The team at essano are no strangers to pioneering sustainable beauty. Green says they were “the first NZ brand to use 100% recycled PET plastic (rPET) in their shampoo and conditioner bottles.” Body wash and lotion bottles followed suit, made from plastic collected from both commercial and kerbside recycling. Last year, essano utilised a different type of post-consumer recycled plastic to package their Natural Deodorants. Green explains: “This was the first of its kind in Australasian supermarkets and rather than launching with virgin plastic packaging, we chose to hold off introducing Natural Deodorants to market in order to create a 100% recycled plastic container that was kinder to the planet.” Now, rosehip oil is the current sustainability focus. In the extreme south of Chile, Patagonia Austral (latitude 44°), there is a beautifully pure region where Essano Limited sources the highest quality rosehip oil. Smallholder farmers and their families hand-pick these seeds which are then organically extracted to produce the amazing oil that heroes essano’s Rosehip Oil skincare range. The oil itself is independently certified organic by Ecocert, one of the largest organic certification organisations in the world. This new sustainable source of rosehip oil isn’t the only change. For the first time in seven years, essano’s Rosehip Oil skincare range is set to receive a fresh look based off consumer research and insights. “The core value at the forefront of this change is to help everyday women achieve confidence in their own skin at an affordable price – this is ‘the essano effect’,” says Green. (Source: IRI NZ Grocery: $ sales: MAT 17/01/21)

Glow Lab - more than just natural, introduces two new innovative skincare ranges. “Launched only three years ago, Glow Lab continues to redefine natural skincare in

supermarkets. With a distinct point of difference, more than just natural, Glow Lab boosts its formulations with scientifically proven, active ingredients to deliver natural products that work,” says Brand Manager Fenella Brown. She explains: “The brand continues to grow at 15.6% and now makes up 26.4% share of the total Natural Skincare category* delivering incremental value through trading up mainstream supermarket consumers AND attracting new consumers to the supermarket skincare aisle. This May sees the introduction of TWO new innovative skincare ranges from Glow Lab. “Google searches for ‘sensitive skin’ more than doubled in the last five years worldwide, presenting a gap in the market; a need for skincare to not only be ‘gentle on sensitive skin’ but actively treat skin sensitivity too.” A supermarket first in New Zealand, Glow Lab Sensitive, is a new dedicated, results driven skincare range. “Harnessing active ingredients such as SymRelief100®, True CalmTM, and Byungpul ExtractTM the range treats inflammation and irritation providing relief from sensitivity flare-ups,” explains Brown. The new complete regime includes: Glow Lab Sensitive Cleansing Oil (100ml), Redness Relief Serum (30ml), Hydra-Gel Moisturiser (100ml) and Restoring Night Cream (50g). Brown adds: “The second innovative range to join the Glow Lab line up are three targeted treatments. Usually reserved for pricey department skincare, Glow Lab’s NEW Hydrating, Firming and Brightening Boosters (15ml) are concentrated formulas containing active ingredients to treat specific skin concerns. Designed as an incremental purchase to consumers' existing skincare routines, and with a short repurchase interval, consumers will start seeing results in 2-4 weeks,” says Brown. “These impressive claims are linked to active ingredients such as L22®, Matrixyl® Synthe6™ and SuperOX-C™ which are backed by scientific research. Both new ranges have been specifically developed to provide unique offers that encourage increased spend, incremental purchase and drive channel switch from pharmacy/department channels.” *T. Grocery Natural Skincare Dollars MAT to 7/2/21

[ category insights ] Earthwise Nourish – Naturally Good Environmental and packaging sustainability is becoming an increasingly important concern for consumers and is changing the future of personal care. Extending beyond packaging, ‘ingredient consciousness’ is also at the forefront of megatrends that are influencing haircare purchases globally*. Nina Kim, Marketing at Earthwise Group Ltd. explains: “Consumers are becoming more aware of the benefits of natural ingredients and ingredients to avoid. Earthwise Nourish haircare is a homegrown brand, that delivers just this – providing an entrylevel natural offer. Crafted with essential oils and natural biodegradable ingredients, free from silicones, parabens, synthetic dyes and not tested on animals. As part of the brand’s pledge to reduce the use of virgin plastic, the bottles are made from 100% recycled plastic – sourced from milk, water and juice bottles. Since October 2018, Earthwise Group Ltd has diverted over 500 tonnes of plastic from landfills. Kim says: “Making the move to natural more appealing and affordable for the mainstream household shopper, the new-look Earthwise Nourish shampoos and conditioners are starting to appear in supermarkets.” The modern salon-style look also includes a new black cap on the conditioner bottles to help differentiate

Colourless

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them from the shampoos, improving ease of use. Discover the full range of Earthwise Nourish personal care range and Earthwise household cleaning. www.earthwise.co.nz *Source: Wunderman Thompson “The Future 100” Report 2021

Violet crushed it Do you have brassy tones in your blonde or do you love that ashy look that is on-trend? Wilson Consumer Senior Brand Manager Vanessa Lewis says: “Purple shampoos are a lifeline for all blondes. Who can bear that brassy look that creeps up between visits to the colourist? “Many purple shampoos are harsh and drying on hair.

A premium companion product for home hair colourants.

WHY RANGE COLOURLESS? Generates incremental sales in the Colourant category Creates consumer confidence when shopping the hair colourant category

WHEN WOULD PEOPLE USE COLOURLESS? Remove undesired hair colour at home Lighten a colour that has gone too dark Remove colour build up

Ensure your store has the full home hair colourant regime – contact us at sales@marzena.com today! colourless.co.nz 0800 146 279

[ category insights ] Purple Shampoo, Purple Conditioner and Intense Purple Shampoo are available (RRP 19.90) at selected Countdown, Fresh Choice, PAK’nSAVE and New World supermarkets nationwide, Chemist Warehouse, Farmers and pharmacies.

“WITH AN EXPERIENCED CONSUMER CARE TEAM, HAVING EXTENSIVE HAIRDRESSING KNOWLEDGE AND EXPERTISE, PEOPLE CAN SHOP THE COLOURLESS RANGE WITH CONFIDENCE” BRAND MANAGER ELANOR GRANT

Colourless to the rescue

Choosing a purple shampoo is a minefield to negotiate carefully. Purple shampoos cancel subtle brassy tones, but stubborn orange brassiness requires blue/violet pigments. “John Frieda Violet Crush Purple Shampoo and Conditioner are moisturising, pigmented and offer subtle toning to dreaded brassiness. For stubborn orange, use award-winning Violet Crush Intense Purple Shampoo. In just one use, crushed violet and blue pigments of this rich moisturising formula instantly transform the most stubborn yellow and orange tones into a cooler, ashy and brighter blonde. Violet Crush Intense is so pigmented, we recommend rinsing your hands immediately after use to avoid purple pigmentation,” explains Lewis. “A bold take on the traditional purple shampoo and you won’t believe the difference! “Violet Crush is great for tips of long hair with a noticeable dry and orange look. Violet Crush will breathe moisture back into damaged ends and neutralise that discolouration. For best results, follow with Violet Crush for blondes Conditioner. Safe for use on natural, colour treated, and even platinum blonde and lightened brunette hair,” says Lewis. Peroxide-free and ammoniafree, John Frieda Violet Crush

Source: NIELSEN SCANTRACK Total Supermarkets - MAT to 28/02/21 Val $ Sales

Val % Chg YA

TOTAL HAIRCARE

$119,339.45

3.09

SHAMPOO AND CONDITIONERS

$99,094.18

4.76

HAIR STYLING AIDS

$7,453.52

-12.30

HAIR TREATMENTS

$6,134.11

21.17

HAIR SPRAY

$5,239.53

-11.94

TOPICAL ANTI PARASITICS

$983.63

-18.01

HAIR CREAMS

$434.33

-4.62

HAIR LOSS PRODUCTS

$0.15

0.00

2020 was the great leveller for beauty regimes, and hair colour was no exception. Grabbing a box of hair colour with the grocery shop was easy, and the empty spaces on the shelves showed that this was a national trend. From #Grombre trending to ‘Iso Moments’ resulting in lilac or pink hair, experimenting in the ‘lockdown salon’ was all part of the new normal. But what happens when using a hair colourant at home does not go to plan? “Maybe the preferred brand was not available, or the trial of a new shade did not deliver the desired results. Not to mention the result of colour build up as the application of colour by consumers at home is more often than not applied root to tips, every application. This results in the ends being four shades darker than the roots,” explains Brand Manager Elanor Grant from Colourless. “This is where Colourless Hair Colour Remover found its relevance in the New Zealand market. As the premium companion for at home hair colourants, Colourless drives purely incremental sales for the category. With two SKUs available; Max Condition and Max Effect, all consumer needs and requirements are met.” Grant says: “Colourless Max Condition is ideal as a regular pre-colour treatment, removing colour build up from the hair to ensure the richest, most vibrant and even colour result is achieved. Max Effect is great for fixing colour mistakes, or removing stubborn build-up such as blacks or reds, as it contains 25% more active ingredients than Max Condition. Both products are safe and gentle, containing no bleach or ammonia, and the hair can be recoloured immediately after either treatment. “With an experienced Consumer Care team, having extensive hairdressing knowledge and expertise, people can shop the Colourless range with confidence knowing that any questions or concerns are met with a tailored response for their specific needs, ensuring that they have a positive experience with the brand even if they are not having a positive experience with their hair.”

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. 20

FMCG BUSINESS - APRIL 2021

Pacific Harvest Superfood Seaweeds Experience the oceans’ superfood with our range of sustainably sourced seaweeds. Easy to use seasonings, flakes and

Horleys’ Smart Snacking Solutions Horleys’ Carb Less Treats are perfect for low-carb diets, weight management and healthy snacking. They are reduced carb, low sugar, individually wrapped treats packed with protein and flavour. Horleys’ range also includes the Protein 33 Energy bars which offer greater nutrition and longer-lasting energy, sports training, exercise fuel and recovery support. www.horleys.com Phone: 0800 467539 E: info@horleys.com

seaweed leaves will enhance flavour and boost nutrients! New packaging is designed to be fully recyclable. https://pacificharvest.co.nz/ Phone: +64 9 414 7600

New Zealand’s #1 Lip Brand Wins Again! The iconic Blistex Lip Conditioner has won ‘Best Lip Balm’ in Beauty Heaven’s Best in Beauty Awards. Blistex Lip Conditioner SPF30 enriched with Cocoa Butter & Vitamin E, not only relieves dry, chapped lips but its moisture-rich formula help prevents them from cracking in the first place. * #1 Lip Care brand by value MAT TKA Grocery MAT to 7.2.21, IRI NZ

Contact Jane Dao. E: janed@wilson.co.nz

New Dole Bobby Banana Packaging

New essano Concentrated Serum range Following the success of essano’s concentrated serums range in Australian pharmacy, the essano skincare experts are bringing this targeted treatment line to New Zealand grocery. Developed to deliver tailored skincare solutions, each product has been crafted with a high concentration of active ingredients that target specific skin concerns to provide rapid results. Contact NZ Business Manager, Maya Feidieker. E: mayaf@essano.co.nz

Dole’s popular Bobby Bananas are now packaged in a new tape that will reduce approximately 16 tonnes of plastic from entering landfill each year and are recyclable via the Soft Plastics Recycling Scheme. Bobby Banana’s updated packaging is one step toward achieving ‘The Dole Promise’ – a global company initiative that aims to increase access to sustainable nutrition, and decrease fruit loss, packaging waste and carbon emissions. www.dolenz.co.nz @dolenewzealand FMCG BUSINESS - APRIL 2021

PETCARE TRENDS Discover new products that disrupt the category.

Natural, premium petfood and products that help to keep our treasured pets healthy are in high demand. Angus Harris, Category Manager at Foodstuffs North Island told FMCG Business: “Sourced from nutritious grass-fed meat and fish from

New Zealand farms and oceans, Animals Like Us have been taking the petfood category by storm with their raw freeze dried and veggie oven-baked bites. “Following their launch into North Island New World and PAK’nSAVE stores late last year, Animals Like Us Super Premium Dog Food is disrupting this dynamic category with its fun branding and health benefits for pets,” says Harris.

Trust Pestigon – for the treatment, prevention and control of fleas, ticks and lice “Your pet is an integral part of your family so looking after your dog or cat means ensuring it is free from nasty fleas, ticks and lice,” says Sales & Marketing Manager David Acott. “Pestigon has a complete range for all sizes of dogs and also for cats, which will help keep them happy and pest free. He explains: “It is important to use the correct dose for the animal. Pestigon packs are colour coded according to the type and size of the animal to make it easy to select the correct pack.

FMCG BUSINESS - APRIL 2021

[ category insights ] FIPRONIL FLEA and TICK Spot-On Solution

“PESTIGON HAS A COMPLETE RANGE FOR ALL SIZES OF DOGS AND ALSO FOR CATS” “Each pack contains three pipette applications, which ensures protection for your pet for up to three months. “With the active ingredient Fipronil 100mg /ml it has been trusted in veterinary medicine to eradicate parasites for years,” says Acott. Available in selected New World and PAK’nSAVE stores nationally. To order your Pestigon range speak to your Alliance Marketing territory manager today or contact the friendly team at Alliance Marketing Head Office in Auckland (phone 09 263 9466). They can talk through the Pestigon product range with you and help merchandise the range on shelf. For animal treatment only. Always read the label and use only as directed. Refer to the product packaging for information on dosage, warnings, precautions, contraindication and side effects. Multichem NZ Ltd, Auckland. TAPS DA 2102DZ (21/006). Source: NIELSEN SCANTRACK Total Supermarkets - MAT to 28/02/2021 Val $ Sales

Val % Chg YA

TOTAL CAT FOOD

251,126.52

6.96

DRY CAT FOOD

95,952.64

4.54

CANNED CAT FOOD

64,084.50

10.07

POUCH CAT FOOD

60,574.60

7.86

WET CAT FOOD

30514.77379

6.60

TOTAL DOG FOOD

167,181.29

6.14

DRY DOG FOOD

71,904.19

3.82

WET DOG FOOD

68,675.10

8.39

CANNED DOG FOOD

24,717.00

5.75

POUCH DOG FOOD

1,885.00

24.76

TOTAL PET ACCESSORIES

118497.4384

15.56

PET SNACKS

69,991.94

16.23

CAT & DOG ACCESSORIES

29,100.73

14.73

BIRD FEED & ACCESSORIES

12,631.13

16.37

OTHER PET ACCESSORIES

2,841.40

10.31

PET MILK

2,539.68

15.48

FISH ACCESSORIES

1,392.56

5.26

On your marks... get set...

GONE!

Pestigon® races to kill fleas, ticks & lice in cats and dogs and provides long lasting spot on treatment.

Why pay more than $30 for 3 months flea treatment? Available from selected New World and Pak’n Save Stores.

For animal treatment only. Always read the label and use only as directed. Refer to the product packaging for information on dosage, warnings, precautions, contraindication and side effects. Ethics Pestigon Spot On Solution for Cats and Dogs contains fipronil 100mg/mL. Suitable for use as part of a treatment programme for Flea Allergy Dermatitis. For further information contact Multichem NZ Ltd, Auckland. TAPS DA 2102DZ (21/007).

Find Pestigon on facebook

MARVELLOUS

MILK

Noteworthy dairy and plant-based milk products that stand out from the crowd. Aunt Jean’s Dairy is a new company backed by horticulture sector leader, seventh generation dairy farmer and owner of Oaklands Milk, Julian Raine, together with leading global glass manufacturer O-I New Zealand. Raine’s long career in dairying has taught him what milk consumers want and value; a direct and traceable connection to the place where their milk was produced.

FMCG BUSINESS - APRIL 2021

O-I New Zealand firmly believes in the superior taste of milk from a glass bottle and in the sustainability story behind glass as an infinitely recyclable material. ‘Jean’ is a name that’s been used for generations of Raine family women, so it seemed the perfect name for this new milk brand with history. Aunt Jean’s Dairy is founded on more than 170 years of dairying experience

[ category insights ] within one iconic Nelson family. Oaklands Farm was established by the current owners’ ancestors in 1844, two years after the family emigrated to New Zealand. Today, Cathy and Julian Raine and other family members carry on the proud tradition of providing high-quality milk to the people of Nelson and Tasman. Cow welfare is a core consideration. Cows are milked once a day and the herd is free to roam and eat grass, living outside all year round. Having recognised the need for a direct connection with the farm producing their milk, the Raines established the Oaklands Milk brand in 2013, selling milk via vending machines at the farm gate and in selected locations in Nelson. Julian and Cathy’s son, Operations Manager Tom Raine explains: “All our milk comes from A2-tested cows. Raised in the open air, our cows graze freely on the lush, green grass of our local farms. We never feed them palm kernel expeller or add any permeates to the milk. Our milk isn’t homogenised. All we produce is beautiful milk, pure and farm fresh. We wouldn’t have it any other way, because we believe well-caredfor cows produce more delicious milk. For more information, check out www. auntjeans.co.nz and for orders phone 027 598 7865 or email info@auntjeans.co.nz .

products and new ones on the way, Otis believe they are well placed to lead New Zealand to a more healthy and sustainable plantbased future. For enquiries and quotes please contact Finn on 027 424 8496.

“OTIS BELIEVE THEY ARE WELL PLACED TO LEAD NEW ZEALAND TO A MORE HEALTHY AND SUSTAINABLE PLANT-BASED FUTURE”

NZ's first homegrown oat milk Otis Oat milk is New Zealand’s first homegrown oat milk, started by the duo of Tim Ryan and Chris Wilkie in August 2018. They explain: “Frustrated by the negative impacts that intensive dairy farming is having on our land and waterways, we decided New Zealand needed a viable plant-based contender to dairy. Key to this, was an alternative that was environmentally friendly and could be grown by farmers right here in New Zealand. “Oat milk was the obvious choice – it was kind on the land, tasty and full of nutritional benefits. It was also showing itself to be the darling of the plantbased milks, seeing breakthrough success in both Europe and USA.” With that, both Ryan and Wilkie packed in their day jobs and got to it. Working in conjunction with industry experts from overseas and after 18 months of hard work, they perfected New Zealand’s first homegrown oat milk using the New Zealand L-5 oat. The result are two core products: Barista; a thick and creamy oat milk, especially created for a frothy finish and Everyday; with a lighter finish, perfect paired with muesli, in a smoothie or on its own. With a dedicated following amongst both top baristas and consumers alike, the priority now is expanding Otis’s presence in grocery. With two

Source: NIELSEN SCANTRACK Total Supermarkets - MAT to 28/02/2021 Val $ Sales

Val % Chg YA

TOTAL FRESH MILK CREAM

517,551.11

4.06

FRESH MILK

437,075.30

2.17

FRESH CREAM

80,475.81

15.68

TOTAL MILK PRODUCTS

177,791.38

18.13

ALMOND

36,301.91

17.48

COCONUT MILK & CREAM

29,141.72

21.48

SOYA MILK

28,429.57

16.79

PROCESSED MILK PRODUCTS

18,979.32

19.52

UHT

18,725.61

28.34

PROCESSED CREAM PRODUCTS

16,478.86

14.51

MILK POWDER

16,240.73

-6.60

OAT

7,789.63

110.54

RICE

3,503.50

-6.25

OTHER NON DAIRY

2,200.55

38.58

TOTAL YOGHURT AND DAIRY FOOD

266,720.37

-0.15

MAINSTREAM

118,329.98

-2.72

HEALTH

61,228.19

0.47

GREEK/GREEK STYLE

42,204.58

8.52

DAIRY ALTERNATIVE

22,280.44

8.54

DAIRYFOOD

13,004.83

2.43

PREMIUM

9,672.36

-22.18

FMCG BUSINESS - APRIL 2021

o t a l u o H flavo

FRESH LOOK & NEW FAVS

! r u TALK TO YOUR TWIN AGENCIES REPRESENTATIVE FOR MORE INFORMATION.

SUPER SOUPS

What’s new and trending in soups this season? Sherrelle Smith, Category Manager for Chilled Foods, Foodstuffs North Island says: “With winter just around the corner, customers are looking to warm their bellies with in-store soup offerings. Kiwis love the classic flavours like Pumpkin, Tomato, Mushroom and Chicken, which continue to be the best-sellers year in, year out. “Canned soup was popular last year, with customers stocking up on pantry staples options during lockdown. This winter, we’re expecting to see this pivot with the launch of a number of new chilled soups. The new Eat Well range from Life Health Foods was a hit with customers last year,

“KING SOUP HAS BEEN COOKING IN KIWI KITCHENS FOR MORE THAN 60 YEARS” SUSAN HARVEY, MARKETING AND BUSINESS DEVELOPMENT MANAGER 28

FMCG BUSINESS - APRIL 2021

and we’re expecting to see further growth for this brand and the chilled soup category this winter. “We’re finding customers that purchase chilled soup are more likely to stock up on healthy essentials like fresh fruit and veges, and other chilled meal solutions, like the California Wellness Bowl, which is one of our best-selling chilled meals,” says Smith.

King Traditional Soup Wilson Consumer Products markets King Traditional Soup. King Soup has been cooking in Kiwi kitchens for more than 60 years

[ category insights ] and it is still proudly made and grown in New Zealand. Susan Harvey, Marketing and Business Development Manager explains: “Being economical, comforting, and versatile it is easy to see why Kiwis love King Traditional Soup mix. While many customers enjoy as a soup, adding water or their own vegetables/ meat, it is also a popular hearty based for casserole/slow cooked meals. “Pumpkin soup is one of the key variant flavours in the soup category and is now available in the King Soup range with our new Pumpkin and Turmeric soup mix. “Kiwis just love pumpkin and King Pumpkin and Turmeric Soup has the classic pumpkin taste that Kiwis love, with a touch of Turmeric. Turmeric is well known for its health benefits and its golden yellow colour. What are the consumer trends in this category? Harvey says: “Wet weather is a trigger point for soup purchases. Cool weather helps, but the optimum is wet and cool weather. “King Soup is different from other soups. Making King Soup takes 1½ hours and that time is seen as entertainment during cold wet weather when it’s hard to get outside. During this time wonderful cooking smells fill the house with warmth, bringing back nostalgic memories. This is the soup that Mum and Nana made. “King Soup is very economical and makes over 2 litres – leftovers are convenient for meals the following day or for the freezer. King Soup can be made with just water as it has all the flavour included and is more convenient than plain vegetable grain mixes. “Vegetables can also be added to King Soup. It’s a great way to use up vegetables that are close to being past their best and an ideal way to get more vegetables into your diet – which is perfect for boosting vitamin intake during winter,” says Harvey.

Bring back the Bacon! Fresh soups and meals brand Artisano has partnered with Hellers NZ Butcher, to create a delicious and warming Bacon & Sweetcorn Chowder for this winter. Made with sweet juicy New Zealand corn and the irresistible flavours of smoked bacon, this recipe is sure to be a family favourite over the chilly season. “At Artisano, we make soups and meals in much the same way as you do at home. Enjoy all the

goodness of a handcrafted home cooked meal and the taste of fresh, flavoursome and nutritious food,” says Artisano Commercial Director Mary Boulton. “Renowned for their tasty bacon and sausages, Hellers were the obvious partner for us. Building on the demonstrated success of bacon flavoured soups, we’ve married the very best with our new collaboration; Artisano’s reputation for handcrafted high-quality soups with Hellers premium moreish smoky bacon. “Artisano - from our kitchen to yours.” For more information, please contact your local Alliance representative: phone 09 2604110 or visit www.artisano.co.nz

“AT ARTISANO, WE MAKE SOUPS AND MEALS IN MUCH THE SAME WAY AS YOU DO AT HOME.” ARTISANO COMMERCIAL DIRECTOR MARY BOULTON

Source: NIELSEN SCANTRACK Total Supermarkets - MAT to 28/02/2021 Val $ Sales

Val % Chg YA

TOTAL SOUP

63,641.41

12.83

CANNED SOUP

25,740.30

11.57

INSTANT SOUP

18,999.46

12.73

PACKET SOUP

12,247.75

13.20

SOUP MIX & PULSES

6,653.91

17.51

FMCG BUSINESS - APRIL 2021

[ marketing & merchandising ]

A NEW VOYAGE BEGINS At Surge SMC we pride ourselves in doing the best we can for our staff, clients and customers in representing and growing business across sales channels. These are challenging times and the landscape has been turned upside down by recent events and the future remains hopeful, but uncertain. We do not see this as an excuse “not” to perform, rather an invitation to be flexible and inventive and to match supply with opportunities. Tony Trilford Managing Director Surge SMC Ltd T: 0800 949 333 M: + 64 21436360 tony@surgesmc.co.nz www.surgesmc.co.nz

The company is fresh, a result of old and new coming together with bespoke systems from the old Rothford combining in the new business to offer not only sales and merchandising, but all facets from category management to 3PL logistics and even contract manufacture. Our focus is the health & wellbeing sectors, meeting the requirements of consumers based on the insights and research we gather in our categories and the collaboration we enjoy with retailers and suppliers in New Zealand and elsewhere. Surge SMC has an energy that is infectious – we truly love what we do and despite day to day frustrations we manage to maintain the levels of enthusiasm and energy required to win. We absolutely value our partnerships and honesty and as such offer practical advice and council to our clients so that they can develop their business to optimum levels. We look forward to partnering with those people that want us as part of their crew sailing forward and finding safe harbour in success.

[ profile ]

THE ESSENTIAL QUALITY OF GOOD DESIGN At Brother Design customer at the point we’ve been creating of purchase guides award-wining everything. packaging design for This results in bold, clients large and small distinctive design for over 15 years. But that’s inventive and above all the design gets noticed in often needs to achieve cluttered categories what it was meant in the supermarket. to do: succeed in the A robust design marketplace. process doesn’t only It’s an approach and lead to more effective philosophy we share at and creative design. Brother, and something It also helps to get we’ve delivered on for great work adopted. Farrah's is one of many projects that the Brother Design team have worked on. a wide range of clients. Being able to explain It’s easy to be drawn how and why a design into admiring a style of design but ensuring the commercial aims of a brand is right reassures owners and stakeholders, ultimately allowing more and design project are achieved requires discipline. freedom. It can also ensure that challenging designs get the go-ahead in At Brother we achieve this through a structured process that places the knowledge that the return will be very much worth the investment. the interaction between the customer and the design at the heart of Overall packaging design, whatever its other merits, has to stand out everything we do. We believe that the quality of the design is only from the crowd. Or it’s not good design. as good as the quality of the thinking that goes into any project. This If you’d like to know more about our approach and whether it could involves building up a detailed analysis of the environment where the help your brand win more sales do get in touch. design does its work, as well as defining crucial customer insights. A By Jenny McMillan, Business Development Director, Brother Design deep understanding of the interaction between the design and the jenny@brotherdesign.co.nz, 021 193 2141 30

FMCG BUSINESS - APRIL 2021

[ good business ]

WELLINGTON CITY MISSION AND NEW WORLD OPEN NEW SOCIAL SUPERMARKET Wellington City Mission and New those being supported or referred World have come together to by other social service agencies. introduce an innovative Social Using a credit-based Supermarket, improving food system, shoppers at the Social security for Wellingtonians in need. Supermarket are allocated points In a shift from the traditional depending on their needs and City Mission food parcel model, the points are exchanged for the Mission’s Social Supermarket, food and essential items. a small store located near its Customers are also taught Newtown address, puts shopper budgeting techniques, with social experience and choice at the heart workers available to assist, along (L to R) Wellington City Missioner Murray Edridge of its new initiative. with a full-time store manager. and Chris Quin, CEO of Foodstuffs North Island. Instead of collecting a pre“We wanted to a make a selected food parcel from Wellington City Mission, customers who positive change to our Foodbank model,” says Edridge. need food support will be able to choose their own goods from a wide Chris Quin, CEO of Foodstuffs North Island who operate New selection of food and essentials in a normal supermarket environment. World, says the partnership is a natural extension of a long-standing Wellington City Missioner Murray Edridge says the approach gives relationship between New World, it’s local owner operators and people the dignity of choice. Wellington City Mission. Working together on the Social Supermarket, The Social Supermarket will be open by appointment and free to which is a first of its kind in New Zealand, provided an opportunity anyone across the Wellington region in need of some extra help. This to extend the co-operative’s commitment to helping ensure all New includes those currently being supported by, or new to The Mission, and Zealanders have access to healthy food.

[ profile ]

HOLA TO FLAVOUR! Say hola to flavour with Farrah’s Mexican! Farrah’s continue to take the Mexican category by storm with a fresh NEW look and bold NEW flavours! Farrah’s refreshed range delivers on trend flavours with a range of meal kits, spice mixes and flame baked tortillas that are all proudly New Zealand made. Kiwis’ tastes and cooking preferences are constantly changing, says Jovan Čanak, Farrah’s Managing Director and Co-Founder. “Consumers are now seeking premium experiences that still deliver great value. Juggling a busy life is everyone’s challenge, we wanted to provide solutions that you can knock up during the weeknights with little time or fuss that the whole family will enjoy.” Nigel Thomson, Farrah’s Head of Marketing says: “Our new Hickory BBQ Taco Kit is a great example where we have drawn inspiration from the vibrant and growing BBQ scene. You can now elevate your taco night with a spice mix that is mild but full of that smoky hickory flavour, combined with your fresh ingredients, our famous tortillas and topped

with a beautifully balanced BBQ Mayo. This is an exciting range focused on quality ingredients and an experience to deliver something for everyone. Smoky Chipotle, Crispy Chicken, Nacho and so much more!” While still staying true to the traditional methods they discovered in Mexico, Farrah’s new range was created with even more in mind, Hickory BBQ and Smoky Chipotle are the perfect addition to stretch into other flavours. “The Mexican category is gaining in popularity with 10.7% value growth and Farrah’s are driving significant growth in this category at 33.5% (IRI scan data, Total Supermarkets, MAT ending 21/02/2021),” says Thomson. FMCG BUSINESS - APRIL 2021

COMING TO A HOME NEAR YOU

Lew Bentley, Head of Strategy at Shopper Marketing Agency Energi

“ONLINE SHOPPING HAS TRULY BECOME A HABIT FOR MOST OF US”

Every year it seems we are being steadily invaded by the digital world. If you are wondering just how much, then I suggest you take a look at the latest Datareportal 2021 report for New Zealand, which provides a great overview of what we are doing online. (https://datareportal.com/reports/digital2021-new-zealand) The report paints a clear picture that online shopping has truly become a habit for most of us. The great majority of us shop online. Eighty percent of all people aged over 15 have ever bought something online and 71% have done so in the past month. It’s pretty much the same situation with our Australian neighbours, 70% of whom have bought something online in the past month. Food and Personal Care are the fastest growing online shopping categories. The analysis combines Food and Personal Care products, which grew in online purchases by a whopping 30% in the past year in New Zealand and 14% in Australia. It is now the third biggest online category here behind travel and fashion, but only the sixth biggest online category in Australia. The penetration of online food delivery services is getting really big. According to Datareportal, 42% of all Kiwi internet users aged 16-64 years old buy from

online food delivery services each month. This market has increased by 23% to $402 million in the past year. As the online world increasingly inhabits our everyday these trends should not really surprise. There are several broad factors at play.

A supply flood There is an ever-expanding range of options available that will deliver prepared or kitset food to our homes such as Uber Eats, My Food Bag, or Hello Fresh – all vying for our attention and our business. On top of this the availability of dedicated online stores, and increased investment in digital channels means we are constantly encouraged to shop from home and wait for it to arrive. Our reach from home easily spans the neighbourhood, the city, the country and the world equally; offering incredible choices and bargains. As people try buying online, without failure, fraud or other disasters, the more it encourages repeat purchasing. The reinforcement of other people’s success stories also adds to a growing sense that buying online is normal, not exceptional. Many online operators help mitigate any fear of failure with free return policies. A telling fact from the research is that the conversion from “ever bought online” to “bought online in the past month” is 89%. That indicates a very high level of satisfaction with buying online.

Go home stay home Over the past year the COVID pandemic drove us all inside in various shades of alert. For many, their relationship with home evolved to be more of a sanctuary than ever, with home the centre of our lives. The pandemic has sparked a strong uptick in home improvement projects, renovations and a lot of people changing the way they use their home space such as new work-from-home offices. Consequently, it is only natural that we want to bring the outside to us, rather than us going out to the wider world. The big message for retailers with all of this is that if it is better or easier to buy online: people will. If you want people to come to your physical store you will increasingly need to make it worth their while. 32

FMCG BUSINESS - APRIL 2021

[ shopping trends ]

NZ Online Buying Habits January 2021 ONLINE BUYING FACTS 94%

Use the internet

90%

Access internet via mobile

82%

Use social media

6 hours 39 minutes average daily time using internet

88%

Searched for a product online in past month

72%

Visited an online store in past month

22%

Used mobile for a payment in past month

ONLINE FOOD DELIVERY 42%

Online food delivery in past month

$402m

Value of online food delivery market

23%

Annual growth rate of online food delivery Source: Datareportal, Digital 2021 report, New Zealand

FMCG BUSINESS - APRIL 2021

[ export ]

STRONG LOCAL SUPPORT FOR

UNIQUE CHOCOLATE TEA BUSINESS

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

“NO ONE WAS OFFERING CACAO HUSK TEA, AND FROM THERE THE IDEA SNOWBALLED” SAM ANGLIS, FOUNDER OF MAYAN MAN

FMCG BUSINESS - APRIL 2021

While backpacking “This has meant that we through South America have had to solely promote six years ago, Sam Anglis cacao husk tea, which has came across cacao husk tea been a slow process when during a visit to a small you’re the only one doing it chocolate factory in but rewarding nonetheless.” Cusco, Peru. The business wasn’t He discovered the overly disadvantaged by Mayans would use the COVID-19, as it was husks of the cacao bean able to operate during to make a chocolatey tea lockdown restrictions. rich in antioxidants. The Anglis says the support Mayans believed the tea the New Zealand public had health benefits and has shown towards small would give power to local businesses has been their kings. exceptional and helped When he returned to alleviate downturns. New Zealand, he sought Sam Anglis, Founder of Mayan Man a supplier of the tea but The Kiwi advantage came up empty handed as “It’s no secret the he discovered cacao husks reputation New Zealand are largely considered a has around the world by-product of the chocolate for producing quality making industry. products,” Anglis says. “No one was offering “Being a small business cacao husk tea, and from in New Zealand I think there the idea snowballed,” has its advantages as there Anglis reflects. is so much support from “They say the best time fellow business owners to start a business is when and people working in you have a job. So, I started the food and beverage Mayan Man while still industry, we’re a tight-knit working full-time in the community.” Air Force as an aircraft While most of Mayan maintenance engineer. Man’s customer base is within New Zealand with “I used my own money to start the business, and after 100% of its stockists being local, it does have overseas about six months it had grown enough to justify leaving sales coming through their online store. work and committing full-time to Mayan Man.” “Our tea has winged its way quite far around the Now in its sixth year, his business Mayan Man is world, including to Belgium, Canada, Sweden and hitting its stride. Hong Kong. “To have made it to this point has not been easy, “The demand is definitely there for some overseas and I am proud of that.” Anglis says there have been retailers - we’ve had lots of enquiries from customers challenges a plenty over the past six years. all around the world wanting us to stock in their “We have faced all the same problems any small country. Japan is a big fan.” business faces. But unique to Mayan Man would In July last year, Anglis moved the business from be the challenge of convincing consumers to try Wellington to Christchurch. Mayan Man operates a new product. out of a small factory in Sydenham where it processes “There are always new products entering the and distributes its tea. market, but often with multiple companies Its tea is available in select supermarkets throughout promoting the new trend, like Kombucha, but in our New Zealand, and smaller boutique stores - around 70 case, we were the only business out there promoting stores New Zealand-wide. It also features on the menu cacao husk tea. of several cafes and restaurants.

[ good business ]

TASTY NEW CRACKERS FROM UPCYCLED GRAIN PROJECT •

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Wellington-based Upcycled Grain Project DUCT OF T HE PRO Y CG has launched a range of sustainable, M FIN AL IST environmentally friendly, tasty crackers to appeal to health-savvy shoppers. PRODUCT OF The Upcycled Grain Project’s ethos of THE YEAR creating ‘sustainably delicious’ products and doing their part to reduce the impact on our planet’s resources, are the key drivers behind how their new crackers are made. The ingredients in the crackers are sustainably sourced, 100% natural and GMO free. Available in two flavours, Rock Salt and Parmesan (RRP: $4.99), the crackers have been crafted from ‘rescued’ spent brewers’ grain from the beermaking process. National Sales Manager Simon Allen explains: “When making beer, brewers steep malted barley to give body and flavour. They keep the liquid to make beer and discard the grain. These grains are sugar-free, packed full of protein and fibre, and are incredibly flavoursome. So, we ‘upcycle’ these grains with other natural ingredients to produce a range of delicious and nutritious snacks.” Upcycled Grain Project was created by Rutherford & Meyer, a producer of crackers, fruit pastes, honeys and spreads, to play a part in minimising waste and make great tasting snacks.

DUCT OF TH PRO EY CG M

“THE CRACKERS HAVE BEEN CRAFTED FROM ‘RESCUED’ SPENT BREWERS’ GRAIN FROM THE BEER-MAKING PROCESS”

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PRODUCT OF THE YEAR

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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 2021.

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To find out more on how to enter please email: trubanowski@intermedianz.co.nz FMCG BUSINESS - APRIL 2021

[ legal advice ]

SALE OF BUSINESS NOTIFICATION TO THE OIO WHAT YOU NEED TO KNOW

Philip Muir is a civil litigator at Steindle Williams Legal swlegal.co.nz

New Zealand recognises the importance of welcoming sustainable, productive and inclusive overseas investment. The corresponding responsibility to supervise and control this has been recognised in legislation since the early 1970s. In 2005 the Overseas Investment Act required consent from the Overseas Investment Office (OIO) for any business sale resulting in greater than 25% ownership of the business by an overseas owner over a certain monetary threshold. That monetary threshold has always been substantial so it did not affect the vast majority of vendors and purchasers. After the arrival of the COVID-19 pandemic during 2020, the New Zealand government recognised that many businesses could be vulnerable to unscrupulous overseas investors due to an increased impetus to raise capital to recover from the adverse impacts of the pandemic. It therefore saw the urgent need for greater management of the risks of overseas investment while the economic impacts of the pandemic remain. An emergency notification regime was therefore enacted, requiring notification to the OIO regardless of value. For as long as the emergency regime remains in force, all business sales to overseas interests that meet the following criteria must be notified to the OIO:

For sale of rights or interests in securities: • If the sale results in the overseas interest owning more than 25% of the entity; • If the sale results in an increase of the overseas interest’s ownership share from above 25% to either: * Above 50%; * Above 75%; or * 100%. For property used in carrying on business: • If the sale effectively amounts to a change in control of the business - i.e., results in more than 25% of the seller’s property transferring from the seller to the overseas person. The emergency regime came into force on 16 June 2020 and will last for a maximum period of two years from that date. It only applies to transactions entered into after 15 June 2020. Every 90 days, the government must review whether the emergency regime needs to continue. Once a transaction has been notified to the OIO, the Minister must make a direction on it. This process will generally take 10 working days. For most business sales this will not present an issue and consent will be granted. However, the OIO must be notified before the transaction can take effect. The urgent nature of this regime and its marked departure from the norm are sure to catch out purchasers who are not aware of this regime, particularly regarding the sale of businesses. Where selling or purchasing your business it is worth considering what effect this regime may have on the transaction and heightens the importance of seeking legal advice for any business sale involving an overseas purchaser.

“THE EMERGENCY REGIME CAME INTO FORCE ON 16 JUNE 2020 AND WILL LAST FOR A MAXIMUM PERIOD OF TWO YEARS FROM THAT DATE.” 36

FMCG BUSINESS - APRIL 2021

[ FGC ]

CHANGES ON THE HORIZON The role of an effective industry association is to advocate for its members in a strong and positive way. To achieve this, a clear strategy should be developed. The Food & Grocery Council’s strategy for its 300plus members has three key planks to it: • being a strong voice for members • sustaining a healthy industry, whether that’s around seeking solutions to sustainability issues, attracting and developing talent, encouraging diversity, promoting health and safety, and any other areas identified by members • delivering membership value. Part of positive change has to be changing the regulatory framework to ensure improved and transparent supplier / retailer business relationships where there is genuine negotiation. Over the past 20 years, there has been a significant shift in risk, power, and margin – from suppliers to retailers. Now, suppliers pay retailers money for things that once upon a time were viewed as genuine retail costs to be picked up by the retailer as part of the everyday business of displaying and selling goods. Now, suppliers take on risks for activities that were once genuine retail business risks. This has turned many suppliers into price takers, where they must accept the prevailing market price and sell at that price, rather than being price makers and participating in a negotiation process. This change in the market is why, for the past 20 years or so, FGC has advocated for regulatory reform to ensure we have a vibrant and sustainable supplier community where everyone benefits. Progress is being made to ensure there’s more of a level playing field. Here are three things on FGC’s agenda for this year that will make a difference:

extending protections against unfair contract terms. The Commerce Amendment Bill is aimed at strengthening prohibitions of the abuse of market power, including amending the test for determining whether a business has taken advantage of market power. These bills have been promoted and supported by FGC over the past six years. Though they are not a panacea, they will make a difference and will align our laws with Australia.

Grocery Code of Conduct FGC has delivered a 500-signature petition to Parliament asking the House of Representatives to support a Grocery Code of Conduct for Supermarkets, similar to those in Australia and the UK, to address potential abuses of market power towards suppliers arising from New Zealand’s highly concentrated retail market. It was presented to MP Greg O’Connor, who said a Code would be good for supermarket owners, because those with good practice would not be disadvantaged by the bad ones because everyone would be working to the same rules. It’s now with the Petitions Committee who will decide if it wants to hear from FGC. If it does, we will continue to advocate for this as a positive change for the industry. To quote those iconic advertisements, “It won’t happen overnight, but it will happen.” FGC is always happy to discuss any of these issues and you can contact us via our website. New members are always welcome to become part of the work we’re doing to deliver a better and fairer grocery sector.

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

“PROGRESS IS BEING MADE TO ENSURE THERE’S MORE OF A LEVEL PLAYING FIELD.”

Market study Late last year, the Government ordered the Commerce Commission to undertake a market study into supermarkets. It said it wanted to make sure consumers were getting a fair deal at the checkout, and that there were indications competition in the sector had weakened. It asked it to look at a range of things, including how retailers deal with suppliers, competition between retailers, and how retailers decide on prices. FGC, retailers, and others have made submissions and now suppliers are being asked to take part in a survey to help the commission understand more. You can do that on the commission’s website.

Two amendment bills The Fair Trading Amendment Bill is designed to introduce new protections against unfair practices by prohibiting unconscionable conduct in trade, and by FMCG BUSINESS - APRIL 2021

FOODSTUFFS’ NEW FUTURE-PROOFED CAMPUS

After nearly six decades at its Mt Roskill home, The campus environment is designed to be safe, Foodstuffs North Island (NI) is moving to a new dynamic and sustainable with plenty of spaces purpose-built facility in Manukau. The new that encourage collaboration and flexible ways campus named Foodstuffs Landing Drive of working – all aspects which were front of is nestled in parkland close to Auckland mind when planning the future new home Airport and is currently New Zealand’s for what’s affectionally known as the largest Distribution Centre (DC) and “Foodies Family”. home to the country’s largest array of Lindsay Rowles, General Manager of rooftop solar panels. Membership and Property, Foodstuffs Combining the dry goods distribution, North Island says: “This location is office workspace, events and people absolutely perfect for us. With our fresh development functions onto one single and chilled & frozen distribution centres campus for the New Zealand owned coclose by, excellent transport links to all of operative, Foodstuffs Landing Drive has been Auckland and the Upper North Island, plus designed to support Foodstuffs’ aspiration to plenty of capacity built into the dry goods CEO Chris Quin on the first floor become one of the most customer driven retailers DC to accommodate future growth, Foodstuffs of the new Support Centre. in the world. Landing Drive will make a huge contribution towards “It’s been key to our plans for three years so it’s really us meeting our customer promises and achieving our exciting to see our new home come to fruition,” says Chris Quin, CEO customer transformation plans.” Foodstuffs NI. The campus took just over 20 months to build and despite the “Foodstuffs North Island has provided nearly 100 years of service to challenges throughout 2020, the buildings were handed over to New Zealanders and absolutely everything about this integrated campus Foodstuffs NI for fit-out three months early. The giant DC is the size of is centred around enabling our teams and partners to put our customers eight full sized rugby fields and has a circumference of 1.3km. first and do the very best job they can now and in the long-term. As we The DC brings together eight of the Upper North Island’s operations saw in 2020, keeping our team and customers safe and products on shelf under one roof. The team have welcomed 50 new workmates, with the for New Zealanders is key.” DC workforce now totalling 600 employees. 38

FMCG BUSINESS - APRIL 2021

[ feature ]

“SUSTAINABILITY IS WOVEN INTO EVERY ASPECT OF THE CAMPUS” Foodstuffs Landing Drive, ground floor of the Support Centre

Equipped with the latest technology, design and safety features and additional capacity for future growth, the DC can hold up to 80,000 pallets and is equipped with the largest bank of semiautomated satellite racking in New Zealand, that holds 14,700 pallets and uses remote controlled pallet shuttles to handle pallets within the racking. General Manager of People & Culture, Wendy Hammonds says, “It’s a beautiful building, full of amenity and a place our people, our co-operative members and our partners can look forward to coming to. We are ‘Foodies’ and the building really reflects our passion for food. We believe that meeting and exceeding our customer promises comes from great team engagement and a strong sense of belonging, we’ve built a fabulous new workplace and it’s our people that will make it a home away from home.” The appointment of Hospitality Manager, Charlie Cai demonstrates Foodstuffs North Island’s commitment to good kai and hosting. This aspiration starts to play out immediately with a Concierge who warmly welcomes new arrivals. Charlie is also responsible for the Innovation Hub where, in the demonstration kitchen, suppliers will be showcasing their new products - and in-house chefs will have the opportunity to trial new recipes for the team and guests to try. The Private Label team will be using the fully equipped test kitchen to innovate, evaluate products and carry out technical testing, plus there’s the aptly named Bar 1922, giving a nod to the year Foodstuffs was formed. “Food brings us all together in the most joyful way and is a huge part of the culture we want to create here. There are no separate eating spaces, we all eat together and regardless of whether you come here every day to work, are a co-operative member or partner, we want everyone to feel welcome, inspired and nourished by their experience with us here,” says Cai. Foodstuffs Landing Drive also has its own Events Centre, a purposebuilt flexible space that hosts anywhere from 10 to 300 people for Foodstuffs events, learning and large meetings both physically and virtually. “We’re a huge whānau with over 300 co-operative members employing over 22,000 people, we regularly get together and whether we’re communicating strategy or learning new skills it’s ultimately about facilitating our transformation into one of the most customer driven retailers in the world,” says Hammonds. Sustainability is woven into every aspect of the campus, including 2,915 solar panels live on the roof of the DC, directly powering the Support Centre building, which is on-track to achieve Green 5 Star for its interior fit out, supporting employee wellbeing. The forklifts and reach trucks in the DC are fully electric and there’s EV chargers in the car park. Natural light has been built into the architectural design and there’s a rainwater harvesting system. “As New Zealanders we love this place we call home, one of our promises is we’ll be leaders in sustainability, Foodstuffs Landing Drive is very much a part of that commitment and we’re extremely proud to be calling this place home,” says Quin.

Foodstuffs Landing Drive Distribution Centre Control Tower

Foodstuffs Landing Drive Ground Floor Support Centre Screen

Arial view of Foodstuffs’ new future-proofed campus

FMCG BUSINESS - APRIL 2021

[ events ]

NZ CHAMPIONS OF CHEESE

MEDALS REVEALED “TROPHY WINNERS WILL BE ANNOUNCED AT THE NZ CHAMPIONS OF CHEESE AWARDS GALA DINNER ON 5 MAY 2021.”

Master Cheese Judge Jason Tarrant

Following judging in Hamilton, the New Zealand Specialist Cheesemakers Association (NZSCA) announced 265 medal winners in the NZ Champions of Cheese Awards 2021. More than 310 cheeses from 35 cheese companies were judged by the panel of 32 judges led by Master Cheese Judge Jason Tarrant. Judging resulted in 265 medals being awarded; 84 gold medals, 121 silver medals and 60 bronze medals. Some of the interesting award-winning cheeses include Aged Deer Gouda from Geraldine Cheese Company (which won gold in the Fonterra Co-operative Group Original Cheese category), New Zealand Food Safety New Cheese category gold medal winners Nieuwenhuis Farmstead Cheese, Poukawa Fog and Oamaru Blue from Whitestone Cheese Co; and also Buffalo Salted Curd from Clevedon Buffalo (which won gold in the IFF/Danisco Fresh Unripened Cheese category). Tarrant said “Overall, the calibre of the entries was excellent with just over one out of every four cheeses entered earning a gold medal.” He noted peak ripeness in white mould and washed rind categories was a little illusive this year. However, he said “this was outweighed by the many fantastic results in other categories showcasing world class New Zealand cheeses.” 40

FMCG BUSINESS - APRIL 2021

Cheese Judge Sandi Legg

NZSCA Chair Neil Willman said the Association was delighted to see so many New Zealand cheeses meeting the high standard necessary to be awarded gold, silver and bronze medals. “Congratulations to all medal winners! We’re delighted many more will be recognised following the Board’s decision this year to issue certificates to the second and third placing cheeses in each category. “This year judging was not without challenge. With Auckland and our Manukau venue going into lockdown one week before the judging, the NZSCA team worked at lightning speed to reorganise the entire event to our backup venue in Hamilton. My personal thanks to the NZSCA team and the fantastic team at WINTEC for their support. The event and venue were both outstanding. “I’m waiting with great anticipation for the announcement of the 2021 champions at our Gala Dinner in May,” said Willman. Trophy winners will be announced at the NZ Champions of Cheese Awards Gala Dinner on 5 May 2021. A full list of NZ Champions of Cheese Medal Winners is available on: https://nzsca.org.nz/winners/ and https://www.cheeseloversnz.co.nz/cheese-awards

[ events ]

NEW ZEALAND FOOD AWARDS 2021 2021 will see the return of the complete New Zealand Food Awards programme showcasing Aotearoa’s food and beverage product and business innovation. Entries open 1 – 31 May at www.foodawards.co.nz. The Awards are an annual programme of activity managed by Massey University and have been celebrating New Zealand’s food and beverage manufacturers since 1987. The New Zealand Food Awards follow an integrated judging process consistent with the Awards’ values of Innovation, Sustainability and Excellence. The Awards judges represent a crosssection of the industry and bring technical, culinary, scientific, and commercial expertise to the awards.

NEW ZEALAND FOOD AWARDS CATEGORIES

The FMCG Business Marketing Summit is back in October!

WHAT’S ON IN 2021

Business Awards

Product Awards

Community Awards

APRIL

Business Innovation

Below Zero

Food Hero

9-11 THE FOOD SHOW

Food Safety Culture

Beverage

Christchurch, NZ

Cuisine

www.foodshow.co.nz

Chilled

13-15 FOODTECH PACKTECH

Health and Wellbeing

Auckland, NZ

Novel

co.nz/

https://www.foodtechpacktech.

Pantry

Entries open www.foodawards.co.nz

The Supreme Winner is selected from among the winners of each of the above category awards. Save the key dates for this year’s New Zealand Food Awards: • 1-31 May – Entries Open • 5-9 July – Judging Week • 18 August – Finalists Announced • 18-31 August – People’s Choice Voting Open • 14 October – Gala Dinner and Winners Announced For more information on how to enter visit www.foodawards.co.nz

5 NZ CHAMPIONS OF CHEESE AWARDS DINNER SkyCity, Hamilton

co.nz/

JULY

www.foodshow.co.nz

AUGUST 11-12 C&I EXPO Melbourne, Australia www.candiexpo.com.au

https://nzsca.org.nz/cheese-awards/

SEPTEMBER

18-20 FRUIT LOGISTICA SPECIAL EDITION

8-9 C&I EXPO NZ

Berlin, Germany

www.candiexpo.co.nz

https://www.fruitlogistica.com/ 28-30 THE FOOD SHOW Wellington, NZ www.foodshow.co.nz

Auckland, NZ

OCTOBER 5 FMCG BUSINESS MARKETING SUMMIT Auckland, NZ

JUNE

https://outstandingfoodproducer.

Auckland, NZ

1-31 NZ FOOD AWARDS

Product Lifetime Achievement

Auckland, NZ

29-1 AUGUST THE FOOD SHOW

MAY

Primary Sector Products

22 OUTSTANDING NZ FOOD PRODUCER AWARDS COCKTAIL PARTY

www.fmcgsummit.co.nz

13-15 FINE FOOD

14 NZ FOOD AWARDS

Auckland, NZ

https://www.finefoodnz.co.nz/

www.foodawards.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 - APRIL 2021

MARKETING SUMMIT Ellerslie Racecourse, Auckland

Save the Date Tuesday 5 October 2021 The one-day marketing masterclass for every FMCG professional BROUGHT TO YOU BY THE TEAM BEHIND FMCG BUSINESS

#FMCGmarketingsummit FOR MORE INFORMATION

M: +61 415 404 264

E: bcurtis@intermedia.com.au

www.fmcgsummit.co.nz

OUT & ABOUT

Cheese judges examine

an entr

of Cheese Awards judg y at the 2021 Champions

ing in Hamilton.

The International Year of Fruit & Vegetables was celebrated at the Beehive in Wellington: (L to R) Minister of Agriculture Damien O’Connor and United Fresh President Jerry Prendergast.

At the NZACS Golf day in Takapuna: (L to R) Gwen Foong, On the Go category Manager at Frucor Suntory and Tamara Rubanowski, Head of Content at FMCG Business.

cs. n talking plasti s in Wellingto mberly-Clark, p delegation wa Ki ou of Gr ott ity Sc bil n ina , Camero The FGC’s Susta erine Rich and sub-committee Executive Kath of the plastics (L to R) Chair yes, FGC Chief Ma n Ly t an O. ult cons ger & CE sustainability Country Mana ud, Nestlé NZ Christian Abbo

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 gift pack of Earthwise products worth $100. When life gets messy, Earthwise does the trick! Plant-powered and effective naturally. Made here in New Zealand and available in your local supermarket.!

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

FMCG BUSINESS - APRIL 2021

[ convenience & impulse retailing ]

SHIFTING

EXPECTATIONS Deb Jackson, Managing Editor, C&I NZ

“THE PAST 12 MONTHS PRESENTED US ALL WITH A UNIQUE SET OF CHALLENGES... FORTUNATELY THE RETAIL SIDE OF CONVENIENCE BENEFITTED FROM A SHIFT IN CONSUMER BEHAVIOUR.”

Welcome to Convenience & Impulse Retailing, created proudly in partnership with the New Zealand Association of Convenience Stores (NZACS). In this issue we chat with Dave Hooker, Executive Director of NZACS to hear what the Association has instore for the year ahead, kicking off with their annual golf day, which was held last month. He talks about the importance of having an industry association that focuses exclusively on convenience retail. He also touches on some of the successes of 2020 and some of the exciting events NZACS members have to look forward to in the months ahead, including the annual NZACS industry breakfast, the C&I Expo and Leaders Summit, and of course the Peter Jowett Scholarship. The past 12 months presented us all with a unique set of challenges, and while fuel sales were up and down fortunately the retail side of convenience benefitted from a shift in consumer behaviour. In convenience, personal care and household categories reversed their decline from previous years, and the medicinal and nicotine replacement therapy categories both enjoyed triple digit growth. In this issue, we share some insights from IRI about the categories that were the real movers and shakers of 2020 to help prepare us for the year ahead.

On-the-go food experienced growth in 2020, and BP maximised this with the launch of its new fast & fresh store-in-store premium food offering. This was piloted late last year at three BP Connect sites and is now continuing to rollout with its fifth site set to open in May. We take a look inside the fast & fresh offering and hear from BP’s Gordon Gillan about which elements of the new concept have been performing the most strongly. We also speak to Myles Davis, Co-founder and Director of Australian-based boutique beverages company, Rogue Beverages. There has been a significant trend towards ‘better for you’ options within both food and beverages as well as a shift towards consumers seeking ingredients with functional benefits. Rogue Beverages tick all of these boxes with their SHOJO and VITONIC wellness drinks, and they are currently seeking to secure a distribution partner to launch into New Zealand. We would like to thank Dave Hooker, Gordon Gillan, Myles Davis, and IRI for speaking with us this month. Until next time, Deb Jackson

PETROL AND CONVENIENCE NEWS PROUDLY BROUGHT TO YOU BY 44

FMCG BUSINESS - APRIL 2021

[ convenience & impulse retailing ]

NZACS:

AN OUTLOOK FOR 2021 NZACS Executive Director Dave Hooker provides an update on what the association has planned for the year ahead.

C&I: Why is it so important for the convenience channel to be supported by an association like NZACS? DH: Our key point of difference is that we are the only association that truly represents convenience in New Zealand. It’s a really important distinction as there are plenty of supplier-type associations but we are the only one representing convenience retail. It is vital to have an organised channel representing the likes of Z Energy, BP, Caltex, Mobil, Challenge, No 8 Retail Group, Gull etc. And they are always our focus. Through Dave Hooker being fully concerned around the organised convenience channel, that drives the interest of our supplier membership. So, if we didn’t have the strong representation of retail, we wouldn’t get strong representation of key suppliers.

C&I: What events do you have coming up and what benefit do they bring to your members? DH: Our annual fundraising golf day, which was held on 18 March, is essentially our kick-off for the year. It’s a social get together and a time for everybody to reconnect after the end of the last year. It’s our way to bring the industry together and get everyone talking about the association again. We had a great day with lots of people attending at Takapuna Golf Club in Auckland, including team members from Bluebird, Fonterra, TipTop, Gull, Nielsen, Remedy, and Frucor. Our next event is an industry breakfast where we will recap the year gone by and look ahead. It’s going to be pretty interesting this year, given what last year looked like. Hopefully, we will be able to come together in person as we had to host it virtually last year. Following that we get into the usual range of events later in the year with our awards, the Peter Jowett Scholarship and this year there is the C&I Expo where we will also run a Leaders Summit.

C&I: How important is the Peter Jowett scholarship to the industry? DH: For the people who participate in the Peter Jowett Scholarship, it can be quite revolutionary, personally, and professionally. Especially if they win. The people who enter already tend to be quite high performing, but with the exposure they get from the scholarship program it gives them a tremendous profile within their companies. Especially with companies like BAT because they actually run an intercompany competition to select the top two candidates to put forward to compete for the Peter Jowett, so it is a very big deal for them.

C&I: It really is such a great opportunity to give young people a platform and a voice: DH: Absolutely and win or lose they just grow so much from the experience. It can be daunting for a lot of them, but it really raises their profile within their respective companies. It’s a big deal.

C&I: What were some of the greatest successes for NZACS in 2020? DH: As an association we really came to the fore last year, because we were involved twice weekly with government working groups around retail, looking at what could be delivered and how it could be delivered safely. Also looking at what was required from government and what was required from us as a retail group. I was spending four hours a week on those and at the same time, government didn’t stop. There were still Bills going through and changes to regulations around vaping, so we still had government submissions we needed to make. We were very busy, particularly during that heavy lockdown time but that set us up for when we went into the other levels as everybody already knew what they had to do. But it really was a lot of work during that March/April period.

C&I: What is your outlook for 2021? DH: As Peter Morton said when you spoke to him last month, our outlook is quite strong from a retail perspective. We have done a lot better than we had expected, certainly in the retail side of business. Fuel is up and down, depending on the restrictions in place and is not as strong overall year on year. But these are the sorts of things that we can dig into at our industry breakfast. That’s a forum where we can discuss what has performed well and what has come out of the box, what’s new, and what we have started selling that we didn’t sell 12 months ago. There’s definitely been some mix change over the last 12 months. There haven’t been radical changes, but we’ve certainly benefitted from a shift in consumer behaviour. And especially in the regions where people we have a choice of probably three or four general grocery type outlets, convenience can look quite attractive.

C&I: Do you have a key message that you’d like to convey to your members? DH: It’s really just to get involved. And that’s at all levels from the committee level to the event level and at the government level, it’s just to get involved. FMCG BUSINESS - APRIL 2021

BP EVOLVES THE SERVICE STATION EXPERIENCE WITH

FAST & FRESH The fast & fresh store-in-store premium food concept creates a modern food market feel within BP Connect stores.

BP is continuing with the rollout of its new premium fast & fresh food concept, with the fifth site set to launch in May. The store-in-store concept creates a modern food market feel within existing BP Connect stores. It offers a selection of quality snacks, nibbles, and meal elements from many of New Zealand’s most loved and recognised food producers. Products include free range Waitoa Chicken from the Waikato District, Whitestone Cheese from Oamaru and Cottage Lane Artisan Bread crafted in the Wairarapa. Fast & fresh was initially piloted at two BP Connect stores in Auckland, including at Clifton, Takapuna and Newmarket, and at one BP Connect in Christchurch at Rolleston, all launching late last year. Since then, the fast & fresh concept has expanded to BP Connect Kumeū in West Auckland, and it will also open at BP Connect Hobsonville in May. The offer incorporates foods such as fresh pasta meals, sushi, pies, salads ready to be heated or plated; hot roast chickens; frozen sides such as chips, wedges, and vegetables; as well as delicatessen items. 46

FMCG BUSINESS - APRIL 2021

Gordon Gillan, Communications Specialist, BP, told C&I that the launch of fast & fresh is the next step in BP’s convenience retailing strategy, which looks to continue evolving the service station experience for busy Kiwis on the go. Since launch, there have been some standout category performances, including sushi, chicken and bread, as well as the combination meal deals. The combination deals include Hot Chicken Meal Deal, with free-range Waitoa chicken, salad and fresh bread for $30; Ultimate Entertaining Meal Deal, including three ‘cheese board’ items for $15; and a selection of dessert items including Ben & Jerry’s, Kapiti and Sara Lee from $8.99 each. “We have brought together wholesome meal options sourced from a mix of local New Zealand suppliers alongside other brand favourites that have been curated for easy assembly at home,” said Gillan. “As real convenience gets redefined by customers, so our offer will evolve."

[ convenience & impulse retailing ]

A look at the fast & fresh offering at BP Connect Clifton

“WE ARE WORKING WITH OUR PARTNERS IN ALL AREAS OF CONVENIENCE RETAILING TO MAKE SURE OUR SERVICE STATIONS ARE PLACES TO RECHARGE AND REFUEL NOW AND INTO THE FUTURE.” GORDON GILLAN, COMMUNICATIONS SPECIALIST, BP

“We are working with our partners in all areas of convenience retailing to make sure our service stations are places to recharge and refuel now and into the future. “Our retail locations and convenience retail expertise make us well placed to provide the services that customers want, when and where they want them.” In 2016, New Zealand became the first market globally to launch BPMe, an innovative app that enables customers to pre-order and prepay for fuel and hot drinks. More recent innovations include the introduction of Good Mood Food in 2018 in which BP became the first retailer outside of Krispy Kreme to sell the popular doughnuts and the introduction of a partnership with Uber Eats in 2019. Fast & fresh is available through Uber Eats and adds to the existing core range of drinks, snacks and Wild Bean Café items as well as Good Mood Food, which are all still available at these BP sites. “We know our customers are after convenience. Fast & fresh is an accessible and quality food solution – whether it’s a forgotten work lunch, an easy dinner after a long day in the office or a last-minute invite to a friend’s place.” FMCG BUSINESS - APRIL 2021

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THE TRENDS

SHAPING THE PETROL AND CONVENIENCE CHANNEL IRI highlights the trends that drove the petrol channel to experience growth in what was a particularly difficult year for all. Despite COVID-19 dominating the petrol channel negatively for most of 2020, with lockdowns restricting movement and travel, there was overall dollar growth of 1.5%1. This was a slow-down of the +7.5% growth experienced in the previous year1. Quarter growth is performing at 1.6% compared to 7.2% in the previous year, however the latest four-week period has seen growth improve to 2.8%, while still comparably down on growth over the same period in the previous year (5.1%), it’s positive to see things moving in the right direction1.

Kiwis spend more at Christmas in the petrol channel Macro factors rounded out 2020 on a positive note. Overall retail electronic card spending was up 5% over the Christmas period compared to the previous year. And the Department of Statistics annual 48

FMCG BUSINESS - APRIL 2021

retail spend showed 1.5% growth for the year ending September 2020 compared to a year ago2. Over the Christmas period, Kiwis spent $122 million in the petrol channel, up 2.8% in value sales compared to the previous year2. The channel growth was primarily driven by non-edibles, which contributed 64.2% to overall channel dollar growth. Non-edibles unit sales we down 5% driven by product mix and price per unit changes. But categories such as beverages, ice cream and medicinal all picked up share during Christmas over the MAT2. There were a number of categories that saw accelerated dollar growth during the Christmas period compared to 2019, including beverages, ice cream, snack foods, and bread. The holiday period also saw an increase in sales of gift cards which grew by 51.7%2 compared to the year prior.

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Retailer initiatives The petrol channel has pivoted to a technology-forward strategy to amplify its ‘speed and convenience’ with things like contactless fuel pay. But the question is, has contact-free purchasing come at a cost to the channel’s in-store sales with a trip to the service station becoming just about fuel? To combat this, petrol retailers have continued to evolve their in-store offerings, with innovation and convenience at the heart. In November, BP launched its first fast & fresh modular store format (which you can read all about on page 46). The concept focuses on convenience and evolving the service station experience. It creates a modern food market feel and features many much-loved New Zealand food brands that can be picked up in-store or ordered via Uber Eats. Edible-based categories have become more important to the petrol channel gaining 0.1pts and in fact over-index in their contribution to the channel’s overall dollar growth at 42.7%1. Categories such as beverages, ice cream and snacking have all gained share of edible sales. On-the-go food increased its value share to 20.2% in the quarter to January1 however that share has softened compared to the same period last year (22.3%). Take home beverages have seen growth accelerate this year (9.2% value growth compared to 7.4% last year1), but also within RTD drinks we saw energy drinks volume growth outperform unit growth indicating a trend towards larger pack sizes. There has been a great deal of innovation, premiumisation and larger pack sizes within the snacking category (see New Products of 2020). We’ve seen NPD drive overall category growth and ice cream has also seen growth off the back of NPD and larger take home pack sizes. In some cases, the petrol channel became a go-to through the COVID-19 pandemic as supermarkets struggled to meet demand for essential items such as bread and milk. Both saw growth in this quarter compared to last year with category share of 0.7% and 3.1% respectively1. Consumers have also been seeking out a wider range of products with the personal care and household categories reversing the decline of the previous year with dollar growth of 3.2% and 5.8% respectively (compared to 2.3% and -2.7% last year). There was also significant continued triple digit value growth in the medicinal category (150.7%) driven by nicotine replacement therapy.

“DESPITE COVID-19 DOMINATING THE PETROL CHANNEL NEGATIVELY FOR MOST OF 2020, WITH LOCKDOWNS RESTRICTING MOVEMENT AND TRAVEL, THERE WAS OVERALL DOLLAR GROWTH OF 1.5%1.” To win in 2021, petrol retailers should assess their in-store offering and make sure they are focusing on the categories that are in high demand within their store. A particular focus should be paid to on-the-go food and beverage offerings along with working with suppliers to range NPD in a range of pack sizes. Sources: 1 IRI Market Edge Petrol, New Zealand, Data to 17/01/21 2IRI Market Edge Petrol, New Zealand, Data to 27.12.20 [Christmas/Festive period = 4wks to 27.12.20, MAT = 52wks to 27.12.20]

FMCG BUSINESS - APRIL 2021

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ROGUE BEVERAGES SEEKS NEW ZEALAND DISTRIBUTION PARTNER Australian boutique beverage company Rogue Beverages is looking to partner with innovative retailers to grow the functional wellness category in New Zealand. Rogue Beverages enjoyed massive growth in the Australian market in 2020 and is now looking to secure a distribution partner to launch into New Zealand. The boutique beverage company was founded by three highly experienced senior executives, Paul Fitzgerald, Sean Cunial and Myles Davis, who have Myles Davis, Co-founder and Director, Rogue Beverages a combined 70 years of global beverage industry experience. They came together to challenge the industry’s status quo by accelerating the introduction of new global trends to local markets. They recognised that there was an untapped area of opportunity within the functional wellness category in Australia and New Zealand. Globally people are becoming more mindful of the ingredients they are consuming and with that the category has grown to be worth an estimated US$68 billion. In Australia, Rogue Beverages is looking to continue its growth momentum in 2021 while also launching its products into New Zealand. Rogue Beverages has two ranges of functional wellness shots. The first is called SHOJO, which has been inspired by established Asian remedies. SHOJO is sold in two flavours; the first is Turmeric, which has anti-inflammatory properties, combined with B Vitamins to support metabolic function, and reduce tiredness, as well as Vitamin C to support immunity. The second contains Red Ginseng, which improves cognitive performance, combined with B Vitamins that support neurological function and reduces fatigue, and Vitamin C to support immunity. The second product range is called VITONIC, which is based on indigenous Aboriginal and Maori botanicals with natural functional benefits. VITONIC is also sold in two flavours. The first, Kakadu Plum and Acacia Tonic, which contains prebiotics to help with gut health

and boosts immunity with its high natural concentration of Vitamin C. The second flavour is NZ Boysenberry and Kawa Kawa Tonic, which is high in anthocyanins to assist in managing lung health, supports pain relief, and reduces fatigue. Myles Davis, Cofounder, and Director of Rogue Beverages told C&I that both brands have been developed in conjunction with nutritionist Nikki Hart containing ingredients that are supported by peer reviewed scientific papers that substantiate their functional benefits. “One of the benefits of having Nikki look over these is that we are specifically targeting those benefits that the consumer needs and making sure that these ingredients are backed up by research,” he says. “Our mission is to challenge the industry’s status quo by accelerating the introduction of new global trends to the market,” says Davis. “Leveraging our background, we aim to bring retailers genuine innovation that creates new segments within the beverage category and delivers incremental growth and margin. “Our team has a passion for wellness and for giving consumers what they want, not what’s convenient. This creates opportunities and solutions that are often overlooked by big, multinational corporations and allows us to pursue rapid innovation. “The petrol and convenience channels are extremely important as we see both SHOJO and VITONIC as convenient products for healthconscious, on-the-go consumers living busy lives. “We’re looking to partner with innovative retailers that can see the emerging trend of immunity boosting products.” For more information contact the Rogue Beverages team on info@roguebeverages.com.au

“WE’RE LOOKING TO PARTNER WITH INNOVATIVE RETAILERS THAT CAN SEE THE EMERGING TREND OF IMMUNITY BOOSTING PRODUCTS.” MYLES DAVIS, CO-FOUNDER AND DIRECTOR, ROGUE BEVERAGES

FMCG BUSINESS - APRIL 2021

SAVE THE DATES Association Partner

Reconnect - Renew - Rebuild

8 - 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

FOOD. IT’S yOUR BUSINESS.

Reinvigorate your passion. Receive expert knowledge. Reconnect with the industry. Recover your business. New Zealand’s leading foodservice, hospitality and food retail trade event - Fine Food New Zealand is set to be the most critical industry event in 2021.

Register for Fine Food New Zealand today for free entry at finefoodnz.co.nz Register before 12 June to avoid the $25 gate fee

13 – 15 June 2021 ASB SHOWGROUNDS AUCKLAND NZ finefoodnz.co.nz Strictly trade only.

over 200 Exhibitors

Skills workshops

ARTISAN ALLEY

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