FMCG Business February 2020 by The Intermedia Group

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L E A D I N G

I N D U S T R Y

N E W S

FEBRUARY 2020 – Volume 7 – No 1

PLUS! HEALTH & WELLNESS n SALADS & FRESH PRODUCE n PACKAGING & DESIGN n LEADERS FORUM 2020 NEW ZEALAND’S LARGEST FMCG AUDIENCE

contents FEBRUARY 2020

UP FRONT 6

EDITOR’S NOTE

INDUSTRY NEWS

SPECIAL FEATURES

16 IT’S SALAD TIME 18 AISLE SPY Local egg suppliers share their news 22 BREAD WINNERS Category insights 37 SPECIAL REPORT FMCG BUSINESS Leaders Forum 2020

REGULARS

33 NEW OWNERS FOR NZ TRADE SHOWS 34 NZ CHOCOLATE AWARDS 35 OUT & ABOUT Our people - spotted at work in NZ and around the world

THE SHOUT EDITOR’S NOTE

4 INDUSTRY NEWS AND INSIGHTS

12 HEALTH & WELLNESS

7 BOTANICALS MOVE BEYOND GIN Botanicals are appearing in categories such as wine and beer

24 GEAR The latest tech for work, rest and play

GOOD BUSINESS 26 INDUSTRY NEWS AND INSIGHTS 28 FGC Quest for a circular economy 29 PACKAGING FORUM Vision of zero packaging waste 30 PACKAGING & DESIGN NEWS

FMCG BUSINESS - FEBRUARY 2020

33 WHAT’S ON Events for your diary

10 WHAT’S HOT New products in store

15 EXPORT Trending: New Zealand Hemp

EVENTS

14 BEST IN SEASON Fresh produce update

32 LEGAL ADVICE Product recall – what you need to know

9 FIVE WINE TRENDS TO WATCH IN 2020 According to research and insights agency, Wine Intelligence 12 REGIONAL FOCUS: MARLBOROUGH Tasting notes from Cameron Douglas MS 14 RTD SOPHISTICATION Tash McGill explores the move towards healthy ready-to drink options 16 THE EVOLUTION OF IPA Beer writer John Oszajca delves into the new (and sometimes quirky) innovations in the world of the IPA

www.remedydrinks.co.nz

[ editorial ]

2020 VISION Welcome back to our first issue in the new year! As we step into a new decade, we have a chance to take stock, reboot and make a fresh start. New Zealand is in a very unique position, blessed with the resources to be a world leader in the production of premium, safe and ethical food. But our long term strategies will need to include more support for our hard-working farmers, embrace regenerative agriculture to maintain soil health, and preserve our precious local water supply. Are there lessons to be learned from the devastating bushfires that have ravaged Australia’s parched landscapes over the last few months? Look out for our special edition FMCG Business Leaders Forum with expert advice for 2020 in this issue – you can also find a digital version on www.fmcgbusiness.co.nz, featuring trend forecasts you can’t afford to miss. New technology will offer us a more seamless shopping experience in the new year, but consumer expectations mean that retailers can’t rest on their laurels. Whether it comes to online shopping, shorter shipping windows or more cohesive omnichannel offerings, e-commerce still has plenty of growth opportunities. Shopping in store – particularly for fresh food – will still drive the vast majority of grocery sales, but e-commerce is clearly on the rise. Online shopping at Countdown saw 38% growth in the July to September 2019 quarter, and it now makes up about 8.5% of their total sales. Alternative proteins and vegetarian NPD have seen massive growth and I’m certain these will continue to flourish, along with more products featuring hemp and ‘good for you’ ingredients. Did you know that hemp has more than 25,000 recognised uses? Industrial hemp is forecast to be worth $75 billion globally within five years – and we’ve started growing it right here in New Zealand. Find out more on pg 15. Keep in touch with us on Facebook and Instagram, subscribe to our weekly e-news and please send us your updates and favourite snaps – we’d love to hear from you.

PUBLISHED BY C&I Media (NZ) Ltd PO Box 109 342 Newmarket, Auckland 1149 MANAGING DIRECTOR Simon Grover COMMERCIAL DIRECTOR Safa de Valois safa@c-store.com.au EDITORIAL DIRECTOR James Wells james@intermedia.com.au HEAD OF CONTENT Tamara Rubanowski trubanowski@intermedianz.co.nz ph: 027 278 4761 NATIONAL SALES MANAGER Vicky Bennett vbennett@intermedianz.co.nz ph: 021 626 115 SALES DIRECTOR Wendy Steele wsteele@intermedianz.co.nz ph: 021 300 473 THE SHOUT EDITOR Charlotte Cowan ccowan@intermedianz.co.nz ph: 021 774 080 ART DIRECTOR Ryan Vizcarra ryanv@intermedia.com.au PRODUCTION MANAGER Jacqui Cooper jacqui@intermedia.com.au PUBLISHING ASSISTANT Eclypse Lee elee@intermedianz.co.nz SUBSCRIPTION ENQUIRIES Eclypse Lee elee@intermedianz.co.nz

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

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L E A D I N G

I N D U S T R Y

N E W S

FEBRUARY 2020 – Volume 7 – No 1

FMCG Business is audited and verified by ABC.

ON THE COVER Tuffy Kitchen towel has fresh packaging, products and growth initiatives in 2020 find out more on pg 11.

PLUS! HEALTH & WELLNESS n SALADS & FRESH PRODUCE n PACKAGING & DESIGN NEW ZEALAND’S LARGEST FMCG AUDIENCE

FMCG BUSINESS IS PROUDLY ASSOCIATED WITH

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FMCG BUSINESS - FEBRUARY 2020

DISCLAIMER This publication is published by The Intermedia Group Ltd (the “Publisher”). Materials in this publication have been created by a variety of different entities and, to the extent permitted by law, the Publisher accepts no liability for materials created by others. All materials should be considered protected by New Zealand and international intellectual property laws. Unless you are authorised by law or the copyright owner to do so, you may not copy any of the materials. The mention of a product or service, person or company in this publication does not indicate the Publisher’s endorsement. The views expressed in this publication do not necessarily represent the opinion of the Publisher, its agents, company officers or employees. Any use of the information contained in this publication is at the sole risk of the person using that information. The user should make independent enquiries as to the accuracy of the information before relying on that information. All express or implied terms, conditions, warranties, statements, assurances and representations in relation to the Publisher, its publications and its services are expressly excluded. To the extent permitted by law, the Publisher will not be liable for any damages including special, exemplary, punitive or consequential damages (including but not limited to economic loss or loss of profit or revenue or loss of opportunity) or indirect loss or damage of any kind arising in contract, tort or otherwise, even if advised of the possibility of such loss of profits or damages. While we use our best endeavours to ensure accuracy of the materials we create, to the extent permitted by law, the Publisher excludes all liability for loss resulting from any inaccuracies or false or misleading statements that may appear in this publication. Copyright © 2020 - The Intermedia Group Ltd

SNAP FROZEN... FROM THE EARTH OR THE SEA

birdseye.co.nz

[ news ]

FOODSTUFFS GOES SOLAR

New Zealand’s largest distribution centre will soon sport the equivalent of 14 netball courts worth of solar panels. Foodstuffs North Island (FSNI) will install the largest array of solar panels in the country, on the roof of its Distribution Centre, which is currently under construction near Auckland airport. Reid Technology, a privately-owned New Zealand company will supply and install a 1.166MWp grid-connected solar panel system. This incorporates 2915 solar panels covering a total area of about 6000sqm

and will generate an amount of electricity equivalent to the power needs of 213 average New Zealand homes per year. This renewable energy solution has been designed to make the office completely “zero carbon” for operational electrical consumption related to the office. Lindsay Rowles, General Manager Property, Foodstuffs North Island says this significant renewable energy installation reflects Foodstuffs' commitment to carbon emissions reduction. The Distribution Centre footprint, at 74,886sqm, would comfortably accommodate the playing areas of New Zealand’s four major rugby venues – Eden Park, Westpac Stadium, Orangetheory Stadium and Forsyth Barr Stadium. “This major solar panel installation and the creation of a 5 Greenstar New Zealand Green Building Council (NZGBC) rated office complex, is the first of its kind at this scale for New Zealand and is very much in line with our aspiration of working towards a more environmentally sustainable business," says Rowles.

FRESH PRODUCE UNWRAPPED Countdown will remove plastic produce bags and more than a tonne of other plastic from three of its stores in February, in a ten-week test to see what else can be done to further reduce plastic in the produce section long-term. From 10 February, customers at Countdown Orewa, Ponsonby and Manukau will try out a new-look ‘Unwrapped’ fruit and vege section, with a lot less plastic and more loose produce, as well as brand new, specially-designed paper and cardboard packaging. Sixty-five products will be ‘unwrapped’ from their usual plastic wrap or pack, and plastic produce bags will also be removed with customers encouraged to use reusable bags. Paper bags will also replace plastic bags for bulk foods. Countdown’s General Manager Corporate Affairs, Safety and Sustainability, Kiri Hannifin, says the company has invested more than $500,000 in shelving, packaging and production changes for the test. “We are incredibly passionate about the environment and reducing the amount of plastic and packaging in our produce section is something we, along with our customers, are keen to see. Unwrapped gives us a chance to give some new things a go with our growers and packhouses. We’re really excited about how these stores will look and feel for our customers and team.”

Throughout the test, Countdown will be talking to its customers and team to understand opinions on the changes, as well as measuring a range of factors. While some products, such as bagged lettuce and herb portions, will remain in plastic due to a lack of suitable alternatives, where possible any plastic packaging provided is made from PET or rPET which can be recycled and used over and over again. Soft plastics can also be recycled at each of the Unwrapped stores.

FOR MORE INDUSTRY NEWS FOLLOW US ON

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FMCG BUSINESS - FEBRUARY 2020

[ news ]

MEET COUNTDOWN’S NEW GM OF MERCHANDISE Countdown has appointed Steve Mills to the role of General Manager of Merchandise, replacing Scott Davidson who left Countdown at the end of 2019 to lead the BWS business (part of Endeavour Drinks) in Australia. Mills has been with Countdown for 27 years and brings with him a wealth of experience across both store operations and buying. Originally from Palmerston North, Steve began his Countdown career as a butchery manager in Porirua. After a couple of years in stores, he became an Area Manager (today's equivalent of a Group Manager) before finally joining the buying team in Christchurch. Countdown’s Managing Director, Natalie Davis, says “Steve is not only a talented buyer, but he is also deeply passionate about our team, our customers, our stores and our supplier partners. Steve’s leadership style has earned him respect from around the business and our supplier community, and his

Steve Mills, Countdown’s new GM of Merchandise

appointment also highlights the breadth of talent we have at Countdown. “Steve is a proud Kiwi with a passion for empowering, mentoring and coaching his people, and I know he will bring this same drive, respect and commitment to this new role,” says Davis. “I’m thrilled by the opportunity to lead the Countdown buying team and to continue to build on our relationships with our supplier partners and the momentum we are seeing,” says Steve Mills. “Serving customers and working with my people has been in my blood for 27 years and I’m proud to say that throughout that time I’ve worked right across our business. For me, this new role is an opportunity to combine my history and experience with what really matters to Kiwi consumers today, which is not only product and price, but increasingly a focus on health, sustainability and a much greater awareness and understanding of the whole supply chain.”

Pure Happiness real manuka pure happiness HAPPYVALLEY.CO.NZ

FMCG BUSINESS - FEBRUARY 2020

Feed Your Curiosity

Fresh New Look Seed Toppers This summer brings a fresh new look for Something to Crow About Roasted Seed Toppers. The new look packs include images of gorgeous serving suggestions to inspire customers. The tasty toppers are perfectly paired with salads, but also superb over smashed avocado, roast veggies, pizza, bread, pesto, tacos, sandwiches and soup or as a guilt free snack. RRP $4.99. Contact Something to Crow About E: mike@crowabout.co.nz or Ph 09 428 0449 www.crowabout.co.nz

Red Rock Deli Roasted Mixed Nuts are roasted and coated with gourmet deli inspired flavours, while the Glazed Nuts are combined with dried fruit and glazed with a sumptuous syrup. The new range comes in two mouth-watering flavours: • Roasted Mixed Nuts Caramelised Garlic & Lemon • Glazed Mix Honey, Vanilla & Cranberries The range will be available from February nationally. RRP $3.99. www.bluebird.co.nz/pages/contact-us

Proper Tortilla Chips are here! Hola Amigos, we’re proud to present our New Proper Tortilla Chips! Our Proper Tortilla Chips are crafted in the same, traditional way they’ve been made in Mexico for generations. Made with white GMO-free corn kernels and ground using volcanic stones. Available in two flavours – Salted and Cheeza-peno. Buen Apetitio! www.propercrisps.co.nz duncan@propercrisps.co.nz 03 546 8980

Proper Crisps x Trelise Cooper Collaboration Roses are red, violets are blue, these crisps are made just for you! Introducing Proper Crisps Pink Himalayan Salt Crisps in limited-edition packaging designed by iconic Kiwi designer Dame Trelise Cooper. Lightly seasoned with Pink Himalayan Salt, these bags are the newest addition to Proper Crisps’ growing range of products available in home compostable bags. www.propercrisps.co.nz duncan@propercrisps.co.nz 03 546 8980 10

FMCG BUSINESS - FEBRUARY 2020

New From Birds Eye In The Freezer Introducing Birds Eye Vegetable Rices – Cauliflower Rice and Broccoli & Cauliflower Rice. These are the perfect carbohydrate substitute with 95% less carbs than cooked white rice. In addition, Birds Eye have a new Premium Frozen Fish fillets range – Deli Fish Fillets and a Birds Eye Wild Caught Deep Sea Dory and New Zealand Whiting. http://birdseye.co.nz/

UCT OF THE OD YE PR A R

PRODUCT OF THE YEAR

•F M C

•

•F M C

[ news ]

UCT OF THE OD YE PR A

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

TUFFY DOUBLE LENGTH NPD FOR MORE SUSTAINABLE GROWTH IN 2020 Tuffy Kitchen towel has fresh packaging, products and growth initiatives in 2020. Enabled by commissioning of Cottonsoft Limited’s $10M factory in Highbrook and expanding Dunedin factory, the range now includes 3Ply and Double Length. Tuffy Brand Manager Dianne Paltridge says: “Tuffy 3Ply is extra thick and absorbent for those Tuffer jobs. Tuffy Double length is absorbent, strong and twice as long, perfect for those bigger jobs. “Tuffy paper is sustainably sourced from renewable fibre and certified by the Program for endorsement of forest certification (PEFC) and Environmental Choice New Zealand (ECNZ). Tuffy is a foundation brand supporting Soft Plastic Recycling. Double length also supports reduced packaging waste with more paper in less packaging. All Tuffy towel is food safe plus hygienically disposable as it’s biodegradable and compostable.” Tuffy is proudly made by Cottonsoft Ltd – a New Zealand manufacturer, marketer and distributor of paper products, providing leading brands for Kiwis since 1988.

NEW ®

ROASTED & GLAZED

MIXED NUTS FMCG BUSINESS - FEBRUARY 2020

HEALTH

& WELLNESS

What’s new and trending in 2020? “Over the last five years we’ve seen a real shift towards people becoming more and more interested in what they eat and including a greater range of healthy foods in their diet such as organics, fermented food, less meat and more plant-based food,” says Steve Mills, General Manager Merchandise at Countdown. “Alternative proteins and vegetarian NPD saw massive growth at Countdown in 2019 and we’re expecting this will continue in 2020. Superfoods continue to resonate with customers looking for an easy health boost, and products using hemp are certainly in the spotlight at the moment. We think oat milk will really come to life in 2020, which uses less water than almond milk to produce and tastes great too. Products with reduced sugar and salt are also continuing to be actively sought out by our customers.” Countdown’s breakfast aisle has recently had a complete makeover to reduce sugary products. “We’ve seen a huge increase in demand for nut butters over the past year and we’re expecting this will continue to grow as health conscious customers seek products which are full of ‘good fats’ and proteins. “The increased growth has also been driven by the increase of products we’re now able to range including the introduction of hemp peanut butter. Butters with added ingredients such as dark chocolate, chia seeds and cacao are also proving to be popular. Premium peanut and alternative butters are showing some of the highest growth within the range, and we expect this to continue as more Kiwis are wanting to adopt a plant based diet. “Moderation is one of the key trends we’re seeing in New Zealand and lower-alcohol offerings are growing in popularity with our customers. We’ve been responding to these shifting drinking habits for some time, and continuing to add or adjust our range to accommodate more low- or 12

FMCG BUSINESS - FEBRUARY 2020

no-alcohol products. The quality of lower alcohol wines has improved significantly in the last few years and they’re becoming an increasingly appealing option for consumers. There is no doubt that this growing trend will continue as we continue to see more NPD from both local and imported suppliers,” says Mills.

Glow Lab Driving Natural Beauty Category Growth Wellness has progressed beyond just a trend as the next generation of conscious consumers seek out natural and organic health products that promote overall wellbeing inside and out. Green, sustainable beauty is

[ feature ] now an integral part of the health and wellbeing industry, and in NZ grocery it’s the natural beauty segment that’s driving the growth within the personal care category. “With consumers more informed than ever, natural beauty products must deliver proven results too; a testament to Glow Lab’s success,” says Fenella Brown, Glow Lab Brand Manager, Earthwise Group. “On track to becoming NZ Grocery’s no.1 natural personal care brand, Glow Lab’s unique position – combining nature with scientifically proven ingredients to deliver natural skincare that works, is a winning formula. The use of active ingredients such as SUPEROX-C™ (Vitamin C) and Collalift®18 (collagen booster) found in high end pharmacy brands, leverage the latest skincare trends and consumer demand for results-driven ingredients.” “Natural and anti-ageing are two key growth areas in skincare. Glow Lab Age Renew® the first natural anti-ageing skincare range offered in supermarkets, is bringing new customers into the beauty aisle. Less than a year in market Glow Lab Age Renew® is delivering largely incremental value sales and accounts for 80% of the natural skincare category growth within NZ Grocery*.” “Set to deliver more ‘firsts’ for supermarkets in natural skincare this summer; Glow Lab’s new Rosehip Oil +Plus (20ml), is a step above traditional rosehip oils with additional active ingredients Vitamin C and Beracare BBA™ - to brighten, hydrate and increase hyaluronic acid levels by 82%. The new Glow Lab Tinted SPF15 Facial Moisturiser (50ml) is an all-in-one long-lasting moisturiser and natural colour tint. Both new additions were specifically developed to drive channel switch and give supermarkets a range of products to compete with pharmacy and department stores,” explains Brown. *T. Grocery Natural Skincare Dollars Growth latest QTR to 15/12/19

The essano effect: “NZ’s No.1 Selling Natural Skincare Brand”* Caroline Clarke, the GM of Marketing and Innovation at Mix Limited says; “essano™ continues to go from strength to strength. Launched only six years ago, the brand sells a product every nine seconds. essano is now firmly established as New Zealand’s #1 Natural Skincare brand*and looks set to take the position of #2 within total skincare in NZ supermarkets with its highest ever share read of 9.5%*.” “essano’s success has been driven by the hero essano Rosehip Oil range, well known for its potent antioxidants and essential fatty acids – natural compounds that make it highly effective against scars and stretch marks and other skin concerns including dehydrated and ageing skin.” “essano’s latest launches Superfoods and Collagen Boost, along with the launch of essano’s first ever TVC “the essano effect” has meant the brand has seen stunning incremental growth and has been able to overtake international brands like L’Oreal and Olay where stocked.” “The essano effect continues with the launch of essano newest range; Vitamin C Brightening.”

New range: essano Vitamin C Brightening to bring shoppers into grocery Shannon Green, Senior Brand Manager, says “Vitamin C in skincare is in strong growth because it is an antioxidant that helps battle the

damaging effects of free radicals, evens out skin tone, while reducing inflammation to leave skin positively glowing and radiant.” “In NZ there are popular Vitamin C ranges outside of grocery, and essano wants to ensure a quality Vitamin C offering is easily accessible to Kiwi women through supermarkets.” “Here at essano we use Vitamin C sourced from mango, papaya and pineapple to create a 5-step regime to cleanse, repair, nourish, smooth, brighten and protect.” Source: *IRI NZ Grocery Value MAT 29.12.2019

Only Good Natural Body Wash launches in larger 100% RPET bottles! “Currently the #1 brand in Natural Hand and Body Wash* in Grocery, Only Good has a strong foundation in 100% palm oil free and natural Personal Care products, which are better for your skin,” says Senior Brand Manager Julia Fletcher. Made by API Consumer Brands, it has been proudly made by Kiwis in Manukau, Auckland, since its launch in 2015. Only Good has recently launched a new 900ml Body Wash size to cater for the increasing demand for premium and natural/better for you offerings in larger formats. “Consumers are becoming increasingly aware of what they put on their skin, looking for brands that are kinder on both their skin and the environment too,” explains Fletcher. “This new 900ml range offers 100% recycled PET bottles and a larger format vs. the existing 445ml range, also meaning less pumps are used! The two beautiful fragrances include new Only Good Calm with Milk, Manuka Honey and Sweet Almond (great for the family!) and Dream with Peach, Waterlily and Honeysuckle. “Body Wash greater than 500ml delivers $25.8 million MAT in NZ Grocery, experiencing growth of +11.6% vs. year ago#. Only Good Body Wash 900ml is set to be one to watch in 2020, offering the opportunity to further drive this strong growth and trade up consumers,” says Fletcher. *IRI: Total NZ Grocery 6M to 22/12/19 #IRI: Total NZ Grocery Body Wash 501ml+ MAT to 22/12/19

FMCG BUSINESS - FEBRUARY 2020

[ fresh produce ]

BEST IN SEASON Sensational summerfruit including apricots, peaches, plums, nectarines and cherries are all still available. Central Otago growers are continuing to harvest the huge flush of fruit that has been coming off trees since the start of the year. Salad type vegetables such as capsicum, spring onions, cucumber, radishes and tomatoes are all plentiful and great value this month. Lettuce and pre-bagged salad mixes are on every consumer’s salad essentials list, so keep well stocked. Soft berries including blueberries, strawberries, blackberries and blackcurrants are fresh, colourful and easy for customers to grab and go. Displays of these are a good idea.

Pumpkins

“CHOOSE PUMPKINS THAT ARE FIRM, WITH UNDAMAGED SKIN.”

At this time of year, plenty of varieties of pumpkin are being freshly picked. As well as traditional crown pumpkin other varieties include buttercup, butterkin, butternut and spaghetti squash. Spaghetti squash have limited availability but are around in the early months of the year. What to look for: Choose pumpkins that are firm, with undamaged skin and feel heavy for their size. Mature pumpkins are the best to select and they will be shiny and feel slightly slippery, immature ones will be slightly sticky. A way to tell the maturity of a pumpkin is the number of brown flecks on the stem - the more flecks it has, the more mature it is. Storage/handling: Store pumpkins in a cool, dark and dry place. Nutrition: Pumpkin contains good sources of vitamins A and C which support growth, development and healthy skin. They are also a source of vitamin E, which helps protect cells against free radical damage.

FMCG BUSINESS - FEBRUARY 2020

Mandarins New Zealand-grown Encore mandarins are available from October to March, so they are nearing the end of their season. However, they are still delicious and are easy peel so remain popular. Satsuma mandarins will come into season in April through to August and Afourer mandarins begin in August. By stocking inseason mandarins, you can ensure year-round supply for consumers. What to look for: Fruit should not have soft, bruised or brown spots as this will cause faster deterioration. Storage/handling: Keep mandarins away from dampness and high temperatures. Store in an area that allows for air circulation. Nutrition: Mandarins are a source of dietary fibre to aid digestion and thiamin which supports mental wellbeing. They are also a good source of vitamin C which helps the body absorb iron from food and supports immunity.

Garlic Garlic is a pantry staple in every household and is available year-round, however harvesting mainly happens in January. Black garlic or ‘garlic noir’ is also now available and this is white garlic that is fermented to create a palatable number that has been compared to a smoky, sweet, dried fruit by some and liquorice by others. What to look for: Garlic bulbs should be plump and compact with taut, unbroken skin. Avoid those with damp or soft spots. A heavy, firm bulb indicates that garlic will be fresh and flavourful. Storage/ handling: Garlic does not like light or moisture and if exposed to this, mould can grow. Store in a dark, dry place with plenty of air circulation.

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[ export ]

BETTING IT ALL ON AN EMERGING INDUSTRY Entrepreneurs Mathew Johnson and Werner Schulz are going all-in on an industry still in its infancy in New Zealand. They started Whanganui-based Hemp Connect in 2015 as a hobby after discovering industrial hemp while looking for sustainable building solutions. The duo soon discovered that building products is just one of many applications the plant has. With a passion for sustainability and farming, hemp led them on a journey of discovery exploring the country and the world to learn more about its applications. They found that hemp has more than 25,000 recognised uses including alternative plastics, construction, and almost anything made from trees. It’s those applications that mean industrial hemp is forecast to be worth $75 billion globally by 2025.

“We had to learn each step of the process form cultivating through to production. The lack of information, expertise and technology was the biggest challenge for us and other hemp companies in New Zealand.” The scale of Hemp Connect’s production has grown considerably in the past year, adding to the challenge. It recently expanded from a five-hectare trial crop to cultivating about 100 hectares. The facility is now also fully operational with an expected output above 100 tonnes for the coming season. The young entrepreneurs are also up against a massive stigma. It is a common misconception that hemp has similar psychoactive properties to cannabis. However, unlike cannabis, hemp contains a tiny amount of THC, the compound that makes you high.

Diving in

Hemp Connect has been self-funded by four shareholders to date. Johnson and Schulz each own 25% of the business. “We have had some significant support from local farmers, Iwi, Whanganui City Council and Whanganui and Partners,” Schulz says. “There is a lot of support and excitement from the local Whanganui community to see what opportunities industrial hemp can bring to the region.” The advice they would give for budding manufacturers is to specialise, don’t try to do everything at once. The pair also says an experienced group of mentors are “worth their weight in gold”. Schulz says he’s looking forward to reaping the benefits of being a Kiwi company when Hemp Connect starts exploring overseas markets. “New Zealand agriculture has earned a reputation internationally for quality and innovation, we are hoping to continue this trend and take something unique to the international market.”

Hemp Connect was officially established in 2017 with the help of a Whanganui farmer who provided a substantial plot of land. The company, which aims to export by 2020, initially only sold to wholesale partners, but recently launched a website and retail brand selling hemp seed and oil. The pair say they are “extremely proud” that Hemp Connect is the first vertically integrated hemp food company in New Zealand, all from a processing facility they built themselves. Schulz says farmers in New Zealand are struggling to find alternative solutions to ensure the long-term economic sustainability of their farms. Hemp provides an option for farmers that want to protect the environment and experience the economic benefit of growing an alternative crop, he says. Growing hemp reduces water and soil pollution, limits soil erosion and helps restore soil health. One Marlborough winegrower has been planting Hemp Connect’s seedlings between her vine rows to improve the moisture and fertility of the soil. The grower is concerned warmer temperatures and less frequent rainfall may put the $1.7 billion a year industry at risk. The plant requires less water, has soil remediation properties and removes four times more carbon dioxide from the atmosphere than pine.

Support

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

“INDUSTRIAL HEMP IS FORECAST TO BE WORTH $75 BILLION GLOBALLY BY 2025.”

The challenge Setting up the company hasn’t been problem-free. Learning the hemp industry from the ground up took time, and there was very little information available when they started the business.

Hemp Connect Entrepreneurs Mathew Johnson and Werner Schulz

FMCG BUSINESS - FEBRUARY 2020

IT’S

SALAD TIME! Fresh summer inspiration.

What’s new in salads and dressings? “In line with the market trend of healthy, convenient meal-solutions recently we’ve focused on launching and growing our range of THE WHOLE MIX fresh bagged Coleslaw and Stir-fry kits designed to make creative meals healthier and easier”, says Angela Thompson, National Sales Manager for THE WHOLE MIX (Speirs Foods). “We’re set on keeping the momentum in innovation going and have recently launched our new Mexican Coleslaw kit, spicing up the salad category and giving shoppers a great choice of exciting flavours with an international twist. The range now includes Mexican Coleslaw, Japanese Miso Coleslaw, Vietnamese Coleslaw and Rainbow with Beetroot Noodles Stir-fry kits – making it so easy to add colour and unique flavours to a summer barbeque or any occasion for family and friends to share. Dressings and crunchy extras are included in the kits – mix and enjoy. 16

FMCG BUSINESS - FEBRUARY 2020

“For those on the go THE WHOLE MIX Grab & Go and Snack pot salads are a great option, ideal for taking to the office or enjoying on the beach. Plant-based options are included for those embracing a plant-based lifestyle. “All our recipes are developed locally in New Zealand to excite Kiwi taste buds, tapping into flavours Kiwis really want, and every day we’re growing more of our own fresh vegetables in the Manawatu, close to our Marton factory to ensure we serve up only the freshest products. “In a growing meal-solutions market we’re committed to driving growth through innovation, with more new products being developed for launch over the coming months,” says Thompson. www.thewholemix.co.nz ph 0800 366 3246 info@thewholemix.co.nz

[ category insights ] Fresh new look for Something to Crow About Roasted Seed Toppers This summer brings a fresh new look for Something to Crow About Roasted Seed Toppers. The new look packs include images of gorgeous serving suggestions to inspire customers. The tasty seed toppers are a convenient, nutritious and tasty way to add crunch and flavour to many meals. “We’re really excited to launch our new look packs in January 2020. With the growing trend towards plantbased eating, consumers are on the lookout for different ways to add flavour and texture to vegan and vegetarian meals. With this in mind, we find the toppers sell best when displayed alongside salads or in the produce department,” says Mike Millar owner of Something to Crow About. Roasted Seed Toppers are perfectly paired with salads, but also superb sprinkled over smashed avocado, Roast Veggies, Pizza, Pasta, Savoury Muffins, bread, pesto, meat, tacos, sandwiches, burritos and soup or as a convenient snack. “The range includes four on trend flavours; Mexican Chilli Lime (new recipe), Tamari Seaweed, Roasted Garlic and Original Savoury. The range is handcrafted by our team in Whangaparaoa and where possible we source New Zealand grown ingredients, such as New Zealand Garlic and Parsley,” says Millar. The 120 gram packs retail for $4.99 and can be found in selected supermarkets nationwide. For more info contact mike@crowabout.co.nz or or visit www.crowabout.co.nz

Healthy, easy meal options Healthy convenience and big flavours are massive trends and Kale is still going strong too. Steve Mills, General Manager Merchandise at Countdown told FMCG Business: “Countdown’s

Own has recently launched a new range of freshly packaged salads kits including Kale Slaw, Thai-Style and American Style - all include fresh produce and salad flavoured dressings. This is all part of our plans to continue to offer our customers easy and healthy meal options. Countdown also has a wide range of freshly-made Kiwi classic salads in the deli section.”

“CONSUMERS ARE ON THE LOOKOUT FOR DIFFERENT WAYS TO ADD FLAVOUR AND TEXTURE TO VEGAN AND VEGETARIAN MEALS.” MIKE MILLAR, OWNER OF SOMETHING TO CROW ABOUT

Source: NIELSEN SCANTRACK Total Supermarkets - MAT w/e 29/12/2019 Val Sales

Val % Chg YA

Total Salad Dressings and Vinegar

90,311,418

3.9%

Mayonnaise

55,717,120

8.1%

Vinegar

15,819,701

-1.7%

Pourable Dressings

12,250,558

-2.8%

Other Salad Dressings

5,317,853

-1.4%

Dry Salad Dressing Mixes

1,206,186

-8.4%

Total Prepacked Salads

162,070,695

12.7%

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. FMCG BUSINESS - FEBRUARY 2020

AISLE SPY Local egg suppliers share their news and trend forecasts.

New Zealand has 161 egg farms almost all which are run by owner operators or are family businesses. These farmers produce over 1.1 billion eggs per annum from the 4 million hens they farm¹. Eggs are not only nutritious, they are produced using the fewest of resources. New Zealand’s modern egg industry is built on a balanced and sustainable approach to farming and food production. Already fortunate to be free from many of the pests and disease strains experienced in other countries, our egg industry now leads the world in many areas of farm practice and animal welfare₁. “Eggs play an important role in providing a source of high-quality protein in an environmentally responsible manner,” says Zeagold Foods Marketing Manager Julie Williams. “In the last 12 months, eggs have climbed three rankings to become the 13th largest Category in supermarkets₂. Supermarkets sold over 51M 18

FMCG BUSINESS - FEBRUARY 2020

dozen eggs at a value of $273M (+$24M). * This strong value growth is a result of the shift to buying more Barn, Free Range and Organic eggs. “The Free Range segment is driving value growth, contributing half of total eggs growth. Shoppers are prepared to pay more for a housing method they consider to be the best in terms of animal welfare. The lower priced Barn segment has had the highest percentage value growth of +37.4% in the last 12 months. Shoppers are starting to make the shift over to Barn eggs (the next cheapest eggs) as Intensive (Cage/Colony) eggs progressively phase out. “We will continue to see substantial growth in Barn eggs over the next 12 months and Free Range eggs will become more mainstream,” says Williams. ₁Egg Producers Federation. ₂MarketEdge: Grocery Market Overview MAT To 17/11/19.

[ category insights ] Zeagold Foods Zeagold is New Zealand’s largest producer, marketer and distributor of eggs; producing more than one third of the country’s eggs and processed egg products. “Zeagold take great pride in their ethical farming methods that put animal welfare at the forefront,” says Marketing Manager Julie Williams. “It is an integral focus of everything the company does for the longterm sustainability of the environment, their hens, and the communities they live and farm in.” Zeagold is the parent company of two market leading brands in their respective segments: • Farmer Brown #1 egg brand in supermarkets for volume and value* • Woodland #1 Free Range egg brand in both volume and value* Williams says: “Farmer Brown is New Zealand’s favourite affordable protein*. It has been a trusted brand for over 30 years and is a considered eggspert in the Category. Its simple packaging design and brand messaging continues to connect with Kiwi families. The Category’s largest egg brand generated over $75.4M* in retail sales in the last 12 months. The next 12 months will focus on expanding its Barn offering as Intensive options are phased out from supermarkets nationwide.

+9.7% VALUE GROWTH

LAST 12 MONTHS*

“Woodland resonates with the discerning Free Range shopper. The brand has clear, premium quality attributes which are aligned with consumers’ values. Recent research highlighted that all of the elements of the brand make sense to people₃. Testament to the strength of the brand is Woodland’s value contribution of $22.5M to retail sales, up +9.7% in the last 12 months*. While Woodland has significant brand leadership in the New Zealand market, it is active in continuing to grow its brand presence in supermarkets. Late last year, Woodland released its first exclusive Christmas packaging with huge success. This will continue in 2020, kicking off with a new Easter packaging and campaign in March.”

NZ’s #1 favourite affordable protein*

NEW PRODUCT

LOOK OUT FOR OUR NEW

EASTER PACKAGING

Cage-Free Barn Range

COMING SOON

NZ’s #1 premium Free Range egg brand in supermarkets.*

The #1 egg brand in Supermarkets.* 100% traceability.

100% traceability. Wide range. fb.com/FarmerBrownNZ *

IRI MarketEdge MAT To 22/12/19

[ category insights ]

“WE WILL CONTINUE TO SEE SUBSTANTIAL GROWTH IN BARN EGGS.” JULIE WILLIAMS, ZEAGOLD FOODS MARKETING MANAGER

The Woodland brand was the first to move to stamping each individual egg at the farm source with the details of the farm where the egg was produced. Consumers can trace their eggs via a website back to the point of origin to provide assurance of the source of the eggs. Other producers are now also starting to stamp their eggs as part of an industry initiative to provide consumers transparency about where their food comes from. While these are voluntary initiatives, Zeagold strongly believes that all egg producers should be transparent about the source of their eggs and stamp the individual eggs. All Zeagold eggs are now stamped, which enables anybody to trace fully back to the source. Kiwis aren’t the only ones enjoying Woodland and Farmer Brown eggs. Zeagold exports egg products to Hong Kong, Singapore, Australia and the Pacific Islands. All Woodland and Farmer Brown export packs carry the Fernmark - the New Zealand Government’s seal of approval. This means consumers can check the authenticity of products by visiting www.newzealand.com. ₃UBER Insights, Qualitative Research. February 2018.

Independent Eggs Independent Egg Producers Co-operative Ltd (IEP) is a 100% NZ-owned egg supplier comprising family-owned and operated farms specialising in the production of quality, fresh eggs across provincial New Zealand. All farms are family-owned, with many being second or third generation, resulting in an ongoing passion for both time-honoured tradition and modern farming advances in everything they do. Coupled with this is an underlying sense of ‘local’, Source: NIELSEN SCANTRACK Total Supermarkets - MAT w/e 29/12/2019 Val Sales

Val % Chg YA

Total Eggs

273,014,963

9.5%

Standard

144,509,803

3.9%

Free Range

102,027,739

12.1%

Barn

19,627,293

56.9%

Organic

6,811,723

2.3%

Other

38,405

-16.4%

‘community’ and ‘provenance’, key attributes in strong demand by the NZ consumer. “Full traceability is now also in place with the addition of the ‘Trace My Egg’ compliance stamping programme (www.tracemyegg.co.nz) across all IEP farms,” says Susan Bamfield, General Manager at Independent Eggs. “As the Number 2 egg producer nationally, IEP holds 30% share by volume (Source: IRI MAT 05/1/20). Ongoing industry changes in supply volumes until Jan 2023 (due to Government legislation), in addition to consumer trends in plastic reduction, will likely see increasing moves towards: • smaller pack sizes • more sustainable packaging. “IEP will continue to implement both initiatives in the best interests of both customers and consumers (by regulating volume to provide security of supply to its customers) in addition to acting in the best interests of the wider environment. Recently launched range extensions to the New Day Free Range and Morning Harvest Barn ranges (all in recycled and recyclable paper fibre packaging) are testament to these trends. Morning Harvest cage and colony eggs are also now available in 18-pack sustainable packaging (replacing the larger plastic shrink-wrap tray formats).” For further information please contact your IEP farm representative or email info@independenteggs. co.nz.

FMCG BUSINESS - FEBRUARY 2020

A FREE RANGE PA SS IO N o f o u r

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BREAD WINNERS

See what’s driving sales in the popular Bread category.

onto a winner! Visit www.farrahs.co.nz for tips on how to do this, along with lots more recipe ideas to try in your household. You can find Farrah’s Wraps range in good supermarkets nationwide. New Zealand made and yeast and dairy free, Farrah’s Wraps (RRP $5.50) all come with a ‘won’t crack, won’t split’ when rolled promise.

A story with full flavour

As time poor consumers search more frequently for a variety of easy meal options, wraps are one of the key grocery items they’re reaching for. It’s not a surprise why – market leaders Farrah’s have continued to highlight the versatility of wraps through easy meal inspiration and step saving solutions for shoppers to ensure they become a staple in every New Zealand household. They’ve also continued to innovate with flavours to keep shoppers interested, like the three new on trend wrap products they launched in August - Mediterranean Tomato, Smoky Chipotle and Chia, Oats & Hemp. Most importantly the numbers back it up, with household penetration growing from 5.7% in 2011 to 27% in 2019 (Nielsen Homescan Data to 19/05/2019). Farrah’s Wraps were also named in the 2019 annual IRI State of the nation as the #1 growth brand in bakery small goods. The uses for wraps are limitless – they make a great substitute for pastry in homemade pies and sausage rolls, folded into a pocket they make burgers into a lighter option, and everyone who’s tried cutting the wraps and baking into chips knows they’ve stumbled 22

FMCG BUSINESS - FEBRUARY 2020

A family-owned company of Mediterranean origins, Lahmajou’s rise from honest, humble beginnings to become one of New Zealand’s largest specialised flat bread manufacturers and a major supplier to the New Zealand food industry is a tale of Kiwi ingenuity and authenticity. Giannis Michaelides set sail from Cyprus in 1966. He arrived in Christchurch with only the clothes he stood in, a wonderful smile and a healthy appetite for leavened bread his mother had taught him to make. But Giannis brought with him more than just his love of pita, he introduced to our pantries other wholesome, ethnic flatbreads from exotic lands and earlier times. The Giannis brand was established in 1991 and continues to go from strength to strength 29 years later. Giannis produce and supply an extensive range of Pita Bread, Wraps, Pizza Bases, Tortilla and Naan bread products that are available in the New Zealand market, including gluten-free options. “We are always looking closely at the market and consumer trends and will continue to develop new products to meet the market, supported by an extensive marketing programme across Giannis social media platforms,” says Lahmajou Sales and Marketing Manager Simon Rangihaeata. “This kind of honest-to-goodness philosophy, Kiwi No. 8 wire mentality, and refusal to compromise the integrity of the products is fundamental to the way the Giannis family will continue to run the business in 2020.”

[ category insights ] For more background on the Lahmajou story go to www.giannis.co.nz https://www.facebook.com/GiannisPitaBread/ https://www.instagram.com/giannisbreads/ For sales enquires contact Lahmajou Sales and Marketing Manager Simon Rangihaeata 021 854 091, simon@giannis.co.nz

NEW KETO PRODUCTS

Dovedale Dovedale is a Nelson based manufacturer of a range of gluten free, keto and paleo breads, biscuits and crackers. They distribute nationwide to New World, Pak’n Save, Four Square and Fresh Choice stores and also organic health shops. In-store merchandising support is provided by ISM. Dovedale has enjoyed spectacular growth since the launch of its first Paleo Bread – Dovedale Paleo Turmeric Bread – in 2016. Dovedale Purple Paleo Bread followed in 2017 and 2019 saw the launch of Dovedale Keto Hemp Bread, Dovedale Keto Pizza Bases, Keto Firecrackers and Keto Hemp Buns. The Dovedale Keto range has quickly become a large part of the business with huge demand matched by the positive comments from new customers. Dovedale Keto Firecrackers, Dovedale Paleo

Turmeric Crackers, Horopito Multi Seed and Dovedale Seaweed Crackers are also proving popular in the snack category. Dovedale’s sweet offerings include Dovedale Panforte – a dense cake of roasted almonds, walnuts, dark chocolate, figs, spice and honey. All Dovedale biscuits are gluten free and egg free and use Nelson Bush Honey instead of sugar. Dovedale continues to innovate with the launch of Dovedale Par Bake – a Bake at Home option – just ten minutes in the oven for fresh Gluten Free Bread. And new in 2020, Dovedale Vegan Hemp Flatties – a great tasting vegan burger, perfect in a Dovedale Keto or Paleo Bun!

Source: NIELSEN SCANTRACK Total Supermarkets - MAT w/e 29/12/2019 Val Sales

Val % Chg YA

Total Bread

524,727,768

5.4%

Light Grain

117,876,219

2.1%

White Bread

107,847,743

7.0%

Heavy Health (Organic/Gluten Free/Alternative)

67,071,648

1.4%

Wholemeal/Wheatmeal

45,088,313

7.5%

Plain Buns & Rolls

31,931,418

13.2%

Wrap

30,767,583

10.4%

Muffins

16,603,694

-2.5%

Crumpets

16,450,972

18.5%

Other Specialty

15,326,844

16.4%

Buttered Bread

13,605,413

-0.9%

Pita

12,821,063

3.1%

Bagels

10,535,804

4.9%

Fruit

8,083,718

-4.7%

Indian Bread

7,004,748

13.8%

Sweet Buns & Rolls

6,758,041

-1.6%

Pikelets

5,505,605

7.8%

Par-Baked

3,970,591

10.4%

Easter Buns

3,866,763

-2.1%

Waffles

3,611,589

29.5%

KETO HEMP BREAD

KETO HEMP BUNS

KETO PIZZA BASES

KETO FIRE CRACKER

03 539 1167

www.dovedale.nz

[ gear ]

OPPO RENNO 2Z

Pat Pilcher’s monthly round up of all the tech worth knowing about, for work, rest and play.

Oppo’s latest flagship smartphone, the Reno 2z is a slick customer. This is in part thanks to a curvaceous glass body with a “Twilight Mist” finish, which features eye-catching iridescent accents. Designerish looks aside, the Reno 2z is all about photography and videos. Its rear camera setup consists of a 48MP Camera, an 8MP Wide Angle shooter plus two 2MP Portrait cameras. Around the front there is also a hidden pop up 8MP camera. Image stabilisation makes for less shaky videos and footage can be edited using a built-in editing app that produces surprisingly professional results. Rounding things out is a bevy of shooting modes including “Ultra Dark Mode”, which lets the Reno 2z take surprisingly good night photos. The front pop-up camera also means there is no notch or punch hole in the screen which equates to an impressive 91% Screen-to-Body Ratio. Last (but by no means least) the Reno 2z comes with a healthy 128GB of storage, which is ideal for those with big media collections. $699 https://www.oppo.com/nz/smartphone-reno2-z/

THE MEATER If the words medium rare terrify you, don’t worry, the Meater has your back. It’s a digital meat thermometer that wirelessly connects to a smartphone app to ensure that whatever the meat is that you’re cooking, it’ll be cooked to perfection. After telling the app the sort of meat and cut you’re cooking and how well done you want it, the Meater and app will time the cook (which includes resting time) based on complex algorithms and readings from the wireless temperature sensor. It’s a simple and elegant piece of tech that can transform your performance in the kitchen or on the BBQ. $199.95 https://www.bbqsandmore.co.nz/meater-true-wirelessthermometer.html

ARLO PRO 2

Hundreds of burglaries go unsolved in New Zealand every day. Avoiding becoming a part of that grim statistic can be as easy as installing Arlo security cameras. In the past security cameras were a luxury few could afford. Arlo cameras come with an easy to install magnetic wall mount and are completely wireless and battery powered so no fiddling about with cables is needed. Keeping an eye on things with the free Arlo mobile app is a doddle. Arlo Pro 2 cameras have colour night vision, a built in LED spotlight and can also act as an intercom. $949 https://www.arlo.com/nz/products/arlo-pro-2/default.aspx

FMCG BUSINESS - FEBRUARY 2020

[ gear ]

HUAWEI WATCH GT2

THERMOMIX

Smart watches sound great in theory, but so often pull up short in practice. Huawei took this on board when launching their second GT Watch. Instead of being a smart watch, they’ve opted more for a simpler fitness tracking focused timepiece. In practice this translates into a swim proof watch that tracks your heart rate, steps and stress levels. It also has a built in speaker that’ll connect to your phone so you can receive and make calls on your wrist. GPS and 15 different workout apps also make it an appealing option for gym junkies. While no third party apps can be installed, the GT2 does offer a staggering two weeks of battery life, which is a huge improvement over the nightly charges needed with so many other smart watches. $349 https://consumer.huawei.com/nz/wearables/watch-gt2/

It's dinner time, you’re shattered after a hard day at work and the kids (and / or your partner) need to be fed. What to do??? Enter Thermomix – the answer to the prayers of jaded domestic gods and goddesses. A Thermomix is essentially a combination of kitchen scale, food processor, stove and online recipe database. With access to over 50,000 recipes from around the world, you need only type what ingredients you have to hand via its built-in touch screen and it’ll give you a list of possible meals. Once a recipe is selected, the Thermomix will step through the cooking process, weighing, blending, chopping and cooking to create your meal. There’s even a pre rinse mode to help with after dinner clean ups! $2,469 https://thermomix.co.nz/

NOKIA 7.2 Priced at a pocket pleasing $549, Nokia’s latest mid-range smart phone, the 7.2 offers a surprising amount of bang for buck value. Kicking things off are its headline features, 48MP dual rear cameras and a 20MP front shooter. Nokia has also partnered with Zeiss for camera optics, which results in photos and videos that give other more expensive phones a real run for their money. The 7.2 also comes in slick glass and alloy chassis and has 128GB, Micro SD expandability along with Dual SIM support. $549 https://www.spark.co.nz/shop/mobile/phones/ nokia-7_2---charcoal/

FMCG BUSINESS - FEBRUARY 2020

[ good business ]

FOODSTUFFS JOINS CLIMATE LEADERS COALITION Foodstuffs New Zealand has joined the Climate Leaders Coalition, formally linking its sustainability ambitions to the Coalition’s mission to tackle climate change and help New Zealand transition to a low emissions economy through collective action. On behalf of Foodstuffs NZ, Managing Director Steve Anderson signed the Coalition’s Climate Change statement which commits the organisation to take voluntary action towards a low emissions future. Anderson says that as one of New Zealand’s largest enterprises it is entirely appropriate that Foodstuffs join other businesses in helping New Zealand transition to a low emissions economy, and in doing so, create a positive future for New Zealanders and business. “We view this as a unique opportunity for businesses to work together and learn from each other to reduce their emissions. “Foodstuffs is committed to be a positive force for New Zealand, and we see this initiative as another way of enabling us to contribute to a healthier and happier world. “We have been working to reduce our emissions for many years, but I’m certain that as part of the Climate Leaders Coalition there will be more that we can learn and implement. There is also the tangible benefit of working together with like-minded businesses to reach a common goal of achieving the country’s Zero Carbon ambitions. “We are confident that this initiative will resonate strongly with the aspirations of our suppliers, customers and the communities of which our stores are part. Surveys show 95% of New Zealanders say they are leading a more sustainable lifestyle, and as a retailer our role is to help them do this.”

Foodstuffs Managing Director Steve Anderson

[ profile ]

2020 – GROW SALES THROUGH STORYTELLING Behind every brand (and its products) is a story - and when this story is well-crafted and shared with the right audience, in the right places and at the right time, it helps grow sales, build influence and create industry leaders. Consumers are demanding more transparency and authenticity from brands. These ‘conscious consumers’ want to know more before buying – Where was this made? How was it made? Is it sustainable? Is it good for my family? Newsworthy stories reach consumers before they buy, establishing you as a trusted voice, building your brand’s credibility and giving you an edge. To do this well, you need to answer three questions; What do you do? Why are you doing it? What change are you trying to achieve? From there, you create your bespoke story. PR professionals get to the heart of 26

FMCG BUSINESS - FEBRUARY 2020

Jacinda Thorn of Thorn PR

your brand quickly, and use your ‘key messages’ to shape stories about your brand, or products aligned to your company’s goals – whether that’s sales growth or greater brand awareness. Thorn PR works with a range of FMCG companies – from household names like HELL pizza to Wellington artisans Harrington’s Smallgoods and awardwinning Koakoa Limoncello. Each of our clients has a unique story to share and they understand the value of doing so to create long-lasting consumer loyalty and awareness, and encourage more people to try and buy. Thorn PR is a cutting-edge public relations agency based in Wellington. Its experienced team tells the stories of change-makers, innovators and creators, amplifying brands, increasing sales and creating positive change. Find out more at www.thornpr.co.nz.

[ good business ]

UK: ASDA’S NEW SUSTAINABILITY STORE

Asda has joined forces with some big brands to launch its first ‘test and learn’ sustainability store in Leeds with a mission to find new ways to reduce plastic and encourage customers to reuse and refill. From May, the new store will become the first Asda in the UK where shoppers can fill up their own containers of products, including Asda’s own-brand coffee, rice and pasta. The supermarket has also asked well known household brands to work with them on their quest to reduce plastic – meaning shoppers will also be able to use refill points for Kellogg’s cereals such as Coco Pops and Rice Krispies and Unilever’s PG Tips tea. Customers will be asked to give their feedback on different trials – allowing Asda and its suppliers to understand more about how these

innovative new ideas work in practice. Trials will last for at least three months before a decision is made on whether to roll out, retrial or stop. In addition to the refill stations, the store will include a ‘naked florist’ offering plastic-free flowers and loose produce with items such as cucumbers and mushrooms being taken out of their plastic packaging. There will also be a range of new recycling facilities, including a reverse vending machine for plastic bottles and cans, hanger recycling and a deposit box for unwanted small plastic toys. Roger Burnley, CEO of Asda, said: “We’re on an ongoing quest to remove and reduce the amount of plastic in our business – and to find new ways to help our customers to reuse and refill our products. It’s a journey we can’t go on alone, which is why we invited our suppliers to innovate with us and I’m delighted that household names like Kellogg’s and Unilever have joined us in testing new ideas and approaches to sustainability at our Middleton store. The move is part of Asda’s commitments to reduce the amount of plastic it uses. Having removed 8,000 tonnes from its own brand packaging since 2018, it recently brought forward commitments to make almost a third of plastic packaging from recycled sources by the end of 2020, and reduce plastic by 15% by February 2021. It will also make all packaging – of whatever material – 100% recyclable by 2025.

[ profile ]

FALLING BACK IN LOVE WITH THE FREEZER The frozen category is experiencing significant growth (+7.1%)*, driven by some great innovation over the past few years led by Ice Cream (+9.4%)*, Snacking products (e.g. Dumplings) (+13.5%)*, Frozen Fish (+10.2%)* and Vegetarian and Plant-based options, demonstrating that freezer products are in hot demand. Frozen foods are snap frozen within hours of being harvested or produced, locking in nutrients and flavour. The convenience of freezer products allows consumers to utilize and consume a range of foods including “out of season” for an extended period of time versus fresh, from the comfort of their home. And with 60% of Kiwi adults not knowing what they were having for dinner when they wake up, combined with consumers' increasing demand for convenient and healthy product solutions that taste great, the freezer is becoming an increasingly attractive way to find that perfect meal solution. Simplot New Zealand, whose frozen product portfolio stretches over Frozen Vegetables, Potato and Fish under the Birds Eye brand, have embraced this new wave of thinking launching a new range of Vegetable Rices and new Premium Frozen Fish offerings, Deli Fish Fillets and a new Coated Species range featuring Wild Caught Deep Sea Dory and New Zealand Whiting. “We strongly believe that our Birds Eye products can assist people to eat a healthy balanced diet in a convenient and cost-effective way”, says Simplot New Zealand Brand Manager, Natasha Cook, “as frozen products are also a great way to portion control and limit food wastage”. Sources: *IRI NZ Grocery $MAT to 15/09/19 **IRI NZ Grocery SOTI Survey 2019 FMCG BUSINESS - FEBRUARY 2020

[ FGC ]

QUEST FOR A CIRCULAR ECONOMY

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

If 2019 was highlighted by shoppers switching from supermarket plastic shopping bags to the jute bags, then 2020 will be about realising additional gains as an industry to reduce unnecessary plastic and packaging. Plastics and other forms of packaging play many vital roles to protect food, beverages and other liquid products, and replacing them is a huge challenge. Sure, there have been, and will be more, small and high-profile announcements such as banning fruit stickers, microbeads in cleansers, plastic cotton buds and straws, but these moves just tinker at the edges. When you look along the supermarket shelves you realise a lot of plastic packaging is going to be hard to replace because of safety, quality and practicality issues. Consumers expect convenience. How else would we get frozen peas and meat home if they’re not in plastic of some sort? It’s there to preserve freshness and nutrition (in the case of meat to also prevent cross-contamination), and nothing does those jobs like soft plastic. Someone complained recently about a cucumber being wrapped in plastic film “when it’s got its own skin to protect it”. True, but that film will keep it fresh for 10 days where otherwise it would last just a couple of days and contribute to the mountain of food consumers already throw away. It’s equally hard to seek plastic substitutes when it comes to products such as milk, hand wash, hair products… the list goes on.

FMCG BUSINESS - FEBRUARY 2020

While food and beverage manufacturers are focused on designing-out unnecessary packaging or moving to different materials – and will continue to do so – their options are limited. In many cases they’re also caught between a rock and hard place. On one hand consumers say they want more sustainable and recyclable materials, but on the other they want safety, freshness and convenience. It’s not always possible to achieve both. Work on solutions has been the subject of an initiative by the Food & Grocery Council – our Sustainability Committee. It’s made up of people from the senior level of companies, all with the goal of making the sector more sustainable in every aspect. Their initial focus will be on product packaging and the circular economy, and will cover plastic and paper packaging, beverage containers/container deposit systems, and compostable packaging. With the calibre of the people involved, I know we’ll see significant progress, and I suspect it will involve compostability and recyclability of plastics instead of outright elimination, due to it being very hard to find alternatives. Collection and recycling is also an issue in itself, because though we have an abundance of raw material, we have a problem with collecting, sorting and processing it into reusable resources. The issue is with the kerbside collections of many of our 67 territorial authorities and the disparity in what they accept for recycling. A survey by waste expert Lyn Mayes revealed the extent of the problem: 19 councils don’t accept any of the hard plastics #3-7 at all, 26 have no direction for ratepayers on if they accept Tetra Paks, 25 are silent on aerosols, and 16 don’t say if they recycle plastic meat trays. Five councils don’t offer any recycling information on their website at all! Take meat trays: they can be made out of PET, which is inexpensive, lightweight and easy to recycle, but just half of councils collect them. Until New Zealand gets its act together and collects enough of each type of packaging to warrant onshore recycling facilities, we are never going to be in a position to recycle, reuse or compost single-use plastics from food and grocery products. If a government wants to make big gains it might consider nudging councils to standardise collection, expand the types of material collected, and invest in recycling capacity. In the meantime, the sector will continue to explore more environmentally friendly options.

[ packaging & design ]

VISION OF ZERO PACKAGING WASTE IN NZ It’s a bit cliché but change really is the only constant. And there are few industries in New Zealand where change is being demanded as quickly as in packaging. The unprecedented focus on the waste produced by packaging undoubtedly presents challenges, but also opportunities such as design innovation, greater efficiency, and increased social licence to operate. In 2018 the Packaging Forum – the country’s foremost member-based packaging organisation – presented its vision that by 2025 there will be no packaging waste going to landfill in New Zealand, with it all being recyclable, reusable or compostable. We are heavily focussed on solutions to help our members achieve this pledge. Our product stewardship programmes for glass bottles and jars, soft plastics and public place recycling play a key role, aiming to reduce litter and improve recovery rates. We help members to achieve all the benefits of packaging for society while minimising any potential harm. We do this by supporting evidence-based policies which deliver the highest value sustainability outcomes, promoting circular solutions in NZ which maximise quality and quantity, collaborating with stakeholders, offering industry-led solutions, and focussing on the full packaging lifecycle. This is even more relevant following Associate Minister Eugenie Sage’s announcement in August that packaging, along with five other products, be considered as a ‘priority product’ under the Waste Minimisation Act 2008. If packaging is declared a priority product, regulated product stewardship schemes will have to be established and all manufacturers, importers and retailers join a scheme. Current schemes would need to be adjusted to follow any new regulatory guidelines. Effective stewardship requires collection infrastructure and onshore processing. With restrictions following China’s National Sword policy hitting recycling exports hard, onshore processing is becoming ever more critical. Our Soft Plastic Recycling Scheme is a great example of the importance of onshore capacity. This scheme was impacted by offshore capacity restraints forcing a temporary

halt in collections but began again mid-2019 after onshore processing was secured. We are now recycling in NZ with Future Post and Second Life Plastics, which make fence posts, garden edging and cable cover. Kiwis have since dropped off around 10 million individual bags or wrappers at participating stores in Auckland, Hamilton and Wellington. This year we plan to further expand collection points around the North Island. One of the factors deciding which areas will get collection points is whether they are buying the products made from the recycled plastic – thus helping create a local circular economy.

Member levies pay for all collection and processing costs, a clear example of product stewardship at work. We encourage all FMCG readers that use soft plastics to become part of the solution by reducing what they use and supporting our recycling scheme to steward the remainder. We also need to increase demand for the products made from the soft plastic. Packaging Forum members who produce, import, fill and retail consumer goods in glass are also part of an effective onshore solution. Our voluntary product stewardship scheme, run under the Glass Packaging Forum (GPF) banner, uses member levies to fund glass recycling projects which result in more quality glass available to make new bottles at O-I New Zealand in Auckland. To date the GPF has funded over $3.4 million in grants for recycling projects and is on track for an 82% recovery rate by 2024. It’s a great example of the industry achieving a circular solution. Now, more than ever, the industry needs to work collaboratively to ensure the best commercial and sustainable solutions are found and ensure they understand regulatory changes afoot. We all have our part to play. Will you join us? www.packagingforum.org.nz www.glassforum.org.nz www.recycling.kiwi.nz

FMCG BUSINESS - FEBRUARY 2020

[ packaging & design ]

NEW PROPER CRISPS X TRELISE COOPER COLLABORATION Nelson Artisan Crisp makers, Proper Crisps, and iconic Kiwi designer Dame Trelise Cooper have teamed up to present a collaboration of Trelise Cooper’s soon-to-launch AW/20 collection and Proper Crisps new range of home compostable packaging. The result is a bag so beautiful you’ll want to share it with those you love while showing a little love to the planet. Dame Trelise Cooper says: “I’m a Proper fan and have been for many years. There is something deliciously decadent about delving into a bag of golden Proper Crisps, and this was such a wonderful opportunity to create something beautiful with crisp innovators Ned and Mina, which could be shared with those you love.” These bags are the newest addition to Proper Crisps’ growing range of products available in home compostable bags. The compostable bags are made from a mix of GMO-Free Corn Sugars and Wood Pulp. Once devoured, simply pop the bag in your garden compost bin and it will decompose in 6-12 months. Proper Crisps recommends cutting up your home compostable bag into small pieces for best results. Head potato and co-owner of Proper Crisps, Ned Smith says, “the support we’ve received so far has made it possible to expand the range and make more home compostable packaged options available. New Zealand has spoken, and we listened. We love New Zealand and we love making crisps the proper way, so it’s important we make the move towards packaging them the proper way too,” Smith adds.

[ profile ]

FINDING A STRONGER VOICE IN THE COMPETITIVE FOOD KIT WORLD WOOP is an interesting New Zealand business success story. They entered the food kit world as trailblazers – offering something unique with pre-prepared ingredients – vegetables already chopped up for you and sauces hand-made – by someone else sweating over a hot stove! They experienced phenomenal growth in their first 5 years, and that’s when it got tougher as new players entered the category. They knew that they needed to articulate their offer in a stronger way to keep pace, maintain growth, and fend off increasing competition – some of that being global competition with bigger infrastructure and coffers. WOOP knew they had to prioritise managing their business well – focusing on consistent delivery of a great product, 30

FMCG BUSINESS - FEBRUARY 2020

actively marketing for new customers, and continually reviewing their customer experience to find ways to make the WOOP customer enjoy the food kit process even more. They needed a specialist to help them improve their business identity. They chose Dow Goodfolk. The rebrand started with brainstorming the WOOP advantage. Understanding what makes you special is fundamental to designing your identity well. The new identity sells the sizzle of a night reclaimed – the joy, and the freedom, that comes from a super-tasty, fresh, locallysourced, healthy-portion dinner, all without the time-wasting peeling, chopping, stirring and waiting. To see the whole story, visit https:// dowgoodfolk.co.nz/design/woop

IS YOUR BRAND BUILT FOR SUSTAINABILITY? To stand the test of time, brands need to move with the times. That’s why we’ve spent 10 years helping ecostore in their quest to find new ways to care for our planet — like designing New Zealand’s first package made from 100% Ocean Waste Plastic. Times change, principles endure. To keep your brand future-ready, email heath@specialgroup.com

Brand Strategy— Identity Design— Packaging specialgroup.com /design 09 846 2402

[ legal advice ]

PRODUCT RECALL

Tony Steindle is a Director of Steindle Williams Legal. He works in the areas of commercial and property law including structuring and dispute resolution. swlegal.co.nz

Food recalls are costly to FMCG businesses, and their consumers. In 2019 there were over 70 notices issued as to food recalls. Most of the recalls were dealt with by the manufacturers, but not always, as some of them were in-house packaged products. It is not just the manufacturer that has a duty to protect consumers – those who sell food also have a responsibility to consumers to protect them from harm. The most important first step for any business selling food is to subscribe for email updates from the Ministry of Primary Industries, or MPI. By subscribing for email alerts, you can act quickly to remove food with safety issues from shelves and assist with recalling any offending food products. Subscribing to email updates alone is not enough, but a good first step, and each business needs an appropriate system in place to promptly deal with the recall of products. The Food Act 2014 imposes duties on manufacturers and suppliers of goods. Relying on the manufacturer alone is not enough. There are offenses in the Act which impose substantial fines of up to $500,000, and include imprisonment as a consequence of any harm or potential harm that may be suffered by a consumer. The offenses range in penalty from intentionally causing harm, through to the supplier of food being negligent in how they dealt with food. Negligence is a relatively low threshold. To be negligent does not mean that

FMCG BUSINESS - FEBRUARY 2020

a supplier of food intended to cause any harm to a consumer, just that they did not take reasonable care. As the offenses in the Act are criminal in nature, you cannot insure for any fine, only the cost of defending an action brought against you. There have been very few prosecutions under the Act. MPI has in the early days of the new legislation instead used other methods of ensuring compliance including the issue of infringement notices, instead of prosecuting. Early last year a manufacturer was prosecuted and fined for failing to disclose an ingredient that caused an extreme allergic reaction to a meat product. If a supplier of those products, despite a recall notice, continued to supply food it is quite conceivable that the supplier could also be prosecuted. To further assist with compliance MPI on its website has some helpful guidelines. MPI’s suggestions are helpful including by way of example making sure there is a designated staff member who takes responsibility for not just taking products off the shelves, but assisting with customers to return unsafe food to dispose of or send back to the manufacturer. A food officer also has quite wide powers including seizing unsafe food, and the ability to on-charge their cost in doing so. If a food officer should seek to exercise any powers it is sensible to get legal advice in all circumstances. At the very least whether you agree or disagree with a food officer, if there is any conceivable risk to consumers a conservative approach of removing items from sale can avoid an issue becoming more serious.

NEW OWNERS FOR NZ TRADE SHOWS NZ’s largest trade show organiser, XPO Exhibitions has acquired nine of North Port Events’ shows. The acquisition includes The Baby Shows, The Food Shows (Auckland, Wellington and Christchurch), Fine Food New Zealand, Facilities Integrate, The Waikato Home & Garden Show and Autumn HomeXPO. It excludes Auckland Art Fair, which will remain with North Port Events. XPO Managing Director Brent Spillane says the company is thrilled to acquire events of such quality. “Dona and Gavin White and the whole team from North Port Events are held in the highest regard by the thousands of exhibiting businesses and tens of thousands of visitors who frequent these shows annually. The profile and stature of these events complement those already organised by XPO and the acquisition injects significant new scale and talent,” he says. The purchase included 40 staff, lifting XPO’s portfolio to that of the largest independently owned B2B and B2C exhibitions organiser in Australasia. “Our sector expos now span food & beverage manufacturing and retail, general manufacturing, packaging, baby, gift and homewares, build construction and design, home shows, facilities management, wholesaling, workplace safety, logistics and more,” says Spillane. “Each show serves the largest national attendance for each market, both at exhibitor and visitor level. We’re confident there will be strong cross-pollination across events,” he says. XPO will run 18 shows in 2020 with more than 3,500 exhibiting companies and host 150,000+ visitors. Dona and Gavin White of North Port Events are comforted to see the shows move from one Kiwi-owned family business to another. “It’s been an emotional journey having launched many of these shows and we’ve taken great pride overseeing their growth and success. Over the 25 years we’ve been organising these events, we’ve celebrated many wins with our clients, visitors and staff, but we’re now at a point where we’re pleased to hand them over to XPO to keep evolving them.”

Celebrity foodie Nadia Lim at The Food Show

WHAT’S ON IN 2020 FEBRUARY 2-5 ISM COLOGNE Cologne, Germany https://www.ism-cologne.com/ 12-15 BIOFACH 2020 World's Leading Trade Fair for Organic Food Nuremberg, Germany https://www.biofach.de/en 28 OUTSTANDING NZ FOOD PRODUCER AWARDS Entries close https://outstandingfoodproducer. co.nz/

6 NZ CHAMPIONS OF CHEESE AWARDS GALA DINNER Sky City Hamilton, NZ 8 WORLDSTAR PACKAGING AWARDS Interpack, Duesseldorf, Germany https://www.worldstar.org/ 22-24 THE FOOD SHOW Wellington, NZ www.foodshow.co.nz

JUNE

3-5 NACS CONVENIENCE SUMMIT ASIA 2020 Bangkok, Thailand www.convenience.org/csa

2-4 NACS CONVENIENCE SUMMIT EUROPE 2020 Berlin, Germany www.conveniencesummit.com

APRIL

21-23 FINE FOOD NZ Auckland, NZ www.finefoodnz.co.nz

JULY

21 OUTSTANDING NZ FOOD PRODUCER AWARDS Champions Party Auckland, NZ https://outstandingfoodproducer. co.nz/

Dona and Gavin White have sold most of their trade shows to XPO.

MAY

MARCH

3-5 THE FOOD SHOW Christchurch, NZ www.foodshow.co.nz

21 NZ CHOCOLATE AWARDS Supreme Winner announced https://nzchocolateawards.co.nz/

30-2 AUGUST THE FOOD SHOW Auckland, NZ www.foodshow.co.nz

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

[ events ] Natural cacao pod and cacao beans

NZ CHOCOLATE AWARDS

The country’s favourite awards are back for 2020! On the first Saturday of March an esteemed panel of food professionals lead by international chocolate judge Elle Coco will smell, taste and assess a selection of New Zealand chocolate to find and name the country’s finest. Gold, Silver and Bronze Medal winners will be named on Tuesday 31 March and the NZ Chocolate Awards Supreme Winner will be announced on Tuesday 21 April. The NZ Chocolate Awards were successfully held in 2017 and 2018 and had a year off last year. Awards organisers extraordinaire Kathie Bartley and Nicola McConnell – owners of the Outstanding NZ Food Producer Awards – established the NZ Chocolate Awards in 2017 in partnership with Intermedia NZ. Late last year they acquired 100% ownership of the NZ Chocolate Awards and are racing to get everything ready to accept entries from the beginning of February. Judging will be conducted across five categories; Bean-to-Bar, Flavoured Chocolate Bar, Filled Chocolate – truffles and bonbons, Bark or Brittle/Dipped Fruit and Nuts and an Open Class. All Gold Medal winners are considered for the Winner of their category. 34

FMCG BUSINESS - FEBRUARY 2020

Top scoring Gold Medal chocolate from Bean-to-Bar, Flavoured Chocolate Bar, Filled Chocolate and Bark or Brittle/Dipped Fruit and Nuts will be re-tasted and the highest scoring will be awarded the title of NZ Chocolate Awards 2020 Supreme Winner. Organiser Kathie Bartley says she’s excited about the return of the awards. “We are hoping the Awards support the country’s growing ranks of artisan chocolate producers by providing a focus on the quality of chocolate made in Aotearoa. We’re also keen to educate consumers and give them confidence in buying local craft chocolate by providing an assurance of quality by awarding Gold, Silver and Bronze Medals, which chocolatiers can display on their packaging.” “We’re especially excited about the timing of the Awards with medal winners being announced just before Easter. We hope it’s an opportunity for chocolate makers to showcase their creativity by entering their specially created Easter Eggs and Easter chocolate confectionary in the newly created Open Class judging category.” Kathie thanked the NZ Chocolate Awards sponsors; NZ Life & Leisure, FMCG Business

HOW TO ENTER Online entries for the 2020 NZ Chocolate Awards open on Saturday 1 February and must be completed by 5pm Friday 28 February 2020. The entry fee is $100 plus GST per product. To enter please email Kathie Bartley kathie@marvellousmarketing.co.nz or visit https://nzchocolateawards.co.nz/

and Label & Litho. “Without these businesses supporting the Awards we would not be able to celebrate the finest kiwi chocolate – which is exactly what’s we’re excited to do!” The NZ Chocolate Awards 2020 Supreme Winner will be announced at a Champions Party in Auckland on Tuesday 21 April. This is a joint event with the winners of the Outstanding NZ Food Producer Awards. Tickets to this party will be available for purchase, initially to Gold Medal winners and then extended to other medal winners and entrants and the public. The Supreme Winner of the 2020 NZ Chocolate Awards will join esteemed alumni from the previous two Awards: 2018 Supreme Winner, Hogarth Chocolate, Buttered Toast & Sea Salt and in 2017 Best Chocolate Bar, Honest Chocolat Salted Caramel & Buckwheat Milk Chocolate Tablet and Best Filled Chocolate, Jo's Sublime Chocolate Salted Sesame and Caramel Bonbon.

Out & About

J. Fernando received an Dilmah founder Merrill from Massey University Honorary NZ Doctorate ton). Fernando and John Bur (with Dilhan and Malik

At Kimberley Clark, one of the companies that contributed to the 2019 Grocery Charity Ball: (L to R) Scott McKay (Trustee GCB), Cam Scott (Kimberley Clark), Carl Sunderland (MND) and Don Graham (Trustee GCB).

nilla flower pollinates a va any Babington Tonga. Tiff in t er en ion ev iss la nil NZ High Comm at a Heilala Va bert Guttenbeil with grower Al The New World Pukekohe team at their storeâ&#x20AC;&#x2122;s official opening.

SNAP AND

WIN!

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 box of the delicious new Red Rock Deli mixed nuts range (valued at $48), crafted with fine quality peanuts, almonds and cashews combined with gourmet deli inspired ingredients. The Roasted Mixed Nuts are savoury and the Glazed Mix is sweet â&#x20AC;&#x201C; a truly unique taste sensation.

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

FMCG BUSINESS - FEBRUARY 2020

Creating A WOrlD Where peOple & nAture thrive in hArmOny The Rainforest Alliance is an international non-profit organization working at the crossroads of agriculture, forests, and business. By bringing diverse allies together, we're catalyzing change on some of the most pressing social and environmental issues of our day.

Our glOBAl reACh We work with farmers and forest communities in

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We work along the entire supply chain to make responsible business the new normal: amplifying the voices of farmers and forest communities, improving livelihoods, protecting biodiversity, and helping people mitigate and adapt to climate change. Armed with the expertise and longstanding partnerships of two leading international sustainability organizations that joined forces in early 2018â&#x20AC;&#x201D;the Rainforest Alliance and UTZâ&#x20AC;&#x201D;weâ&#x20AC;&#x2122;re implementing proven and scalable solutions on the ground while testing innovative ways to drive change. 1.

We work with farmers and forest communities to advance environmentally, socially, and economically sustainable practices. These include climate-smart agriculture, community-based sustainable forest enterprise development, financial planning, improved working conditions, and the conservation of vital natural resources.

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using more sustainable farming methods*

under Rainforest Alliance/UTZ agricultural certification*

Products with the Rainforest Alliance seal or UTZ label available in

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We support farmers and forest communities with innovative training, data tools, and technical assistance so they can meet our rigorous sustainability standards, based on these best practices. We are working with our partners to re-imagine certification as a journey of continuous, data-informed improvement rather than a binary pass/fail model. We guide companies and consumers along the entire supply chain on their sustainability journey: transforming business practices, cultivating consumer demand for more sustainable products, and incentivizing farmers and foresters to adopt best practices.

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COnsumer reACh 498,000

129,000

218,000

APRIL 2019

* 2018 combined data for the UTZ and Rainforest Alliance certification programs, accounting for farms with double certification.

NEW ZEALANDâ&#x20AC;&#x2122;S LARGEST LIQUOR AUDIENCE

FEBRUARY 2020 | www.theshout.co.nz

WINE TRENDS FOR 2020 RTD SOPHISTICATION THE EVOLUTION OF IPA

LIGHTEN UP FIND YOUR MOMENT

contents

The Shout Editor, Charlotte Cowan

THE NEW 20S

Welcome to 2020! As we hit the new roaring 20s, we’re going to see some epic changes in the liquor industry – especially in New Zealand. But there are also some question marks about what this decade will hold. Will the number of Kiwi craft breweries continue to rise? Will we see new and exciting wine varietals, or will New Zealanders be happy to stick to the tried and true? And will we see further innovation in spirits – we’ve already had sheep’s milk, hemp and ants … can we go further? Here at The Shout, we’re excited to see what the next few years will bring in the liquor category. For a start, this month we check out the wine trends predicted by Wine Intelligence for the coming year on pgs 9-10. And Tash McGill and John Oszajca take us through what’s new and exciting in the world of our favourite acronyms – RTDs and IPAs – on pgs 14-15 and 16-17. Plus, Cameron Douglas shares some delicious drops from Marlborough on pgs 12-13. Don’t forget to head along to our website to check out more news and events, and follow us on Instagram and Facebook @TheShoutNZ. Enjoy the sunshine, see you next month!

february 2020

4 INDUSTRY NEWS AND INSIGHTS 7 BOTANICALS MOVE BEYOND GIN

Botanicals are appearing in categories such as wine and beer, the IWSR reports

9 FIVE WINE TRENDS TO WATCH

IN 2020

According to research and insights agency, Wine Intelligence

12 REGIONAL FOCUS: MARLBOROUGH

Tasting notes from Cameron Douglas MS

14 RTD SOPHISTICATION

Tash McGill explores the move towards healthy ready-todrink options

16 THE EVOLUTION OF IPA

Beer writer John Oszajca delves into the new (and sometimes quirky) innovations in the world of the IPA

NEW ZEALAND’S LARGEST LIQUOR AUDIENCE

COVER STAR:

FEBRUARY 2020 | www.theshout.co.nz

WINE TRENDS FOR 2020 RTD SOPHISTICATION THE EVOLUTION OF IPA

LIGHTEN UP

TOI TOI WINES

Founded by Kevin and Sara Joyce, Toi Toi Wines released their first vintage – Toi Toi Marlborough Sauvignon Blanc – in 2007. Now, they have more than 15 varietals, including Rosé, two sparkling offerings and Sauvignon Blanc in a can. For more, head to pg 12.

FIND YOUR MOMENT

EDITOR’S PICKS

PUBLISHED BY C&I Media (NZ) Ltd PO Box 109 342, Newmarket, Auckland 1149 Managing Director Simon Grover Editorial Director James Wells james@intermedia.com.au Commercial Director Safa de Valois safa@c-store.com.au Editor Charlotte Cowan ccowan@intermedianz.co.nz ph 021 774 080

1 WAIRAU RIVER MARLBOROUGH SAUVIGNON BLANC 2019 Champion Trophy and Gold Medal winner at the 2019 New World Wine Awards, this Sauvignon Blanc is full-flavoured and textured and leaves you longing for more. The perfect crisp and fruity drop to add to your wine fridge this summer. For more top picks from Marlborough, take a look at pgs 12-13. 2 SPRIG & FERN BRUT IPA When is an IPA not just an IPA? When brewers decide to create a new wave that will capture the attention of beer lovers - like Sprig & Fern with this Brut IPA. With a light, dry champagne-like finish and bold fruity aromas, it’s a must-try this summer. Check out pgs 16-17 to learn more about the evolution of the IPA. 3 PART TIME RANGERS WHITE RHINO Gin, lemon and sparkling water, this RTD not only has less than 1 gram of sugar, it helps endangered species, with 10% of profits donated to wildlife organisations. For more on the latest health-conscious and mission-focused RTDs, head to spirits writer Tash McGill’s story on pgs 14-15. For more amazing liquor news (and even a few giveaways), make sure you follow us on Instagram and Facebook @theshoutnz and sign up to our fortnightly eNewsletter at www.theshout.co.nz.

THE SHOUT NZ – FEBRUARY 2020 3

news

Entries open for 2020 New World Beer & Cider Awards Entries are now open for the New World Beer & Cider Awards. The competition brings together the rigours of professional judging with a retail opportunity to deliver measurable sales and a boost to brand awareness for Top 30 winners, which will be awarded prime shelf space in 138 New World supermarkets across New Zealand. The next 70 highest-ranked beers and ciders will be Highly Commended and, alongside the Top 30, will be celebrated on the New World website in a Top 100 list of the best brews in the country. Returning Chair of Judges, beer writer and author, Michael Donaldson, says the New World Beer & Cider Awards present an unmatched opportunity in the New Zealand market for beer and cidermakers, as well as shoppers. “The New World Beer & Cider Awards Top 30 gives shoppers an easy and exciting list to explore. It helps shoppers – from novice to enthusiast, easily and confidently try different brands, styles and trends. “Naturally, many well-known and loved brands from here and overseas make this list each year; and the New World Beer & Cider Awards are well known for having a hand in discovering new brands and boosting them to nationwide awareness.” The New World Beer & Cider Awards are open to breweries and cideries of all sizes, from around New Zealand and internationally. Entrants do not need to be an existing New World or Foodstuffs supplier, however there are critical minimum stock requirements set for each class. An independent judging panel, comprising 24 experts from across the industry, and eight associate judges-in-training, will judge the entrants over two days in Wellington in March. Each entry will be judged blind and assessed on its merits using a collaborative approach based on technical excellence, balance and, most importantly, drinkability. For more information, head to www.newworld.co.nz/nwbca.

Adelaide vineyards devastated by Australian fires Adelaide Hills winemakers and producers are working together to assess the damage caused by the fires that have torn through the region. Around one-third of the Adelaide Hills’ vineyards stood in the path of the fire, including more than 60 grape growers and producers, many of which are small family businesses. Many of the grape growers that have been affected have no public profile, no brand to get behind and no wine to sell. Some of these family businesses are considering their futures as destroyed vineyards can take years to regenerate. Kerry Treuel, Executive Officer of Adelaide Hills Wine Region, says that the region is likely to be feeling the effects of this disaster for many years to come. “Broadly we know that approximately 30% of the region’s vineyards (1100 – 1200ha) were in the fire area but the damage to all of these is yet to be determined. “Unfortunately, some vineyards are completely gone but there are other areas where vines are still intact with no fire damage. We are working closely with The Australian Wine Research Institute (AWRI), Vinehealth Australia and industry experts to understand the damage and salvage as much as possible.” Although damages are still being assessed, with more than 60 grape growers and producers having been affected by fire, there is no doubt that the region is going to be impacted by grape shortages for vintage 2020. “The flow on effect of a disaster like this will be felt by many and for years to come,” says Treuel. To help growers and producers and fund recovery efforts, the Adelaide Hills Wine Region has set up a Fire Appeal and is now accepting donations through its Go Fund Me page – search ‘Adelaide Hills Wine Region Fire Appeal’ to donate. 4 THE SHOUT NZ – FEBRUARY 2020

WHAT’S ON February 16 NELSON WINE & FOOD FESTIVAL A&P Showgrounds, Richmond www.facebook.com/ nelsonwineandfoodfestival/ February 29 GINDULGENCE Generator@GRIDAKL, Wynyard Quarter www.gindulgence.co.nz March 7 GREAT KIWI BEER FESTIVAL Claudelands Events Centre, Hamilton www.greatkiwibeerfestival.co.nz/

March 7-8 WHISKEY GALORE’S DRAMFEST 2020 Town Hall, Christchurch www.dramfest.co.nz March 14 MARCHFEST Founders Park, Nelson www.marchfest.com/ March 14 WAIRARAPA WINES HARVEST FESTIVAL ‘The Cliffs’, Wairarapa www.wairarapaharvestfestival.co.nz/ March 28 WHITEHAVEN GRAPERIDE The Vines Village, Marlborough www.graperide.co.nz April 11 GISBORNE BEER FESTIVAL www.gisbornebeerfestival.nz/

industry insights

TWE’s year of celebration and innovation The highlights of 2019 had Treasury Wine Estates (TWE) and its brands celebrating success, innovation and milestones. Peter Neilson, TWE Managing Director ANZ, was pleased with these achievements and how they’ve been received by industry and consumers alike. One of the significant highlights was Penfolds celebrating 175 years of winemaking heritage. “To mark the anniversary, we released Special Bin 111A Clare Valley Barossa Valley Shiraz 2016 – a new, rare Penfolds wine, which has quickly captured the attention of critics and collectors alike,” Neilson says. Another new product was a cross category infusion of wine and spirit, the Squealing Pig Rosé Gin, which is the first gin release containing Pinot Noir rosé in Australia. The “brand’s playful nature, paired with the quality and expertise it’s renowned for,” also represent a significant opportunity for TWE in 2020. “Personally, I’m also looking forward to building on the success of new releases such as Squealing Pig

Peter Neilson Managing Director ANZ, Treasury Wine Estates

Rosé Gin, with a focus on blurring category lines (the emergence of cross-category beverages), led by quality and considered innovation,” Neilson says. “With consumer behaviours changing and the power behind the opportunity to innovate, the opportunity to engage new consumers or expand existing consumers’ consideration set has seen a great response.” But first, as the TWE teams prepare for the 2020 vintage, Neilson said the immediate focus for the company will be “to continue working with partners to find solutions in this ever-changing landscape, that deliver on consumer needs and customer and internal expectations.” “As Australia’s leading producer of wine, we feel it’s incumbent on us to be at the forefront of driving category growth and with our amazing portfolio of brands and a focus on premiumisation we are well equipped to do so.” Such a strategy worked well for TWE in 2019, with several of its products well positioned to capitalise on the biggest wine trends of the year, proven by the fact that six Australian Liquor Industry Awards (ALIA) categories were taken out by TWE. “Whether it was through phenomenal growth in varietals such as rosé, or through spritzed offerings and wine in cans, there is no denying that refreshment continues to be a key factor for consumers in their enjoyment of wine,” Neilson says. “Canned wine as a category and the role that convenience plays is another trend that showed growth in 2019. At TWE we’re proud to have the number one and two canned wine products currently in market [according to IRI data] with our Squealing Pig Spritzed Rosé and Spritzed Pinot Grigio.” From a business perspective, throughout 2020 there will be increased emphasis on sustainability, and “creating long term value” for the TWE company and the wider industry. As a wine producer, TWE is intrinsically linked to natural and human resources, making this an extremely important factor for them. Neilson said: “As an industry, we all have the opportunity to positively contribute to the environment and our communities. This will look different for every company based on size, product and location but there’s always more we can do.”

For more insights from industry executives on their predictions for the liquor industry in 2020, check out The Shout NZ Leaders Forum at www.fmcgbusiness.co.nz THE SHOUT NZ – FEBRUARY 2020 5

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BOTANICALS MOVE BEYOND Gin has led the way in consumers’ appreciation of botanicals but now, driven by the trend toward health and wellbeing, botanicals are appearing in categories further afield, the IWSR reports. hile gin has led the way in consumers’ understanding and appreciation of botanicals, other categories are now tapping into their growing popularity. We need only look to the seemingly unstoppable rise of non-alcoholic ‘spirits’ derived from botanical distillates for proof of that. And now botanicals are appearing in products further afield, including wine, beer and surprising spirits, such as rum, according to drinks market analysis experts, the IWSR.

WELLNESS AND MODERATION Wellness and moderation are now at the forefront of many consumers’ purchasing habits – especially Millennials. Clean, pure ingredients that don’t compromise on taste offer reassurance and shelfappeal. Often sold in packaging that depicts their botanical, natural ingredients, these products are visually and nutritionally a marked change from the plethora of brightly coloured and artificial flavour-laden products previously aimed at LDA (Legal Drinking Age) consumers. Some alcohol products are benefiting from botanicals’ association with the ever-growing low- and no-alcohol category. These drinks advertise their functional, organic botanical ingredients such as rose petals (as an antidepressant and antioxidant), milk-thistle seeds (as a digestive tonic to help protect the liver), St John’s Wort, and lime flowers, to help combat anxiety and hypertension as well as the common cold. For some brands, botanicals only available in specific places or at certain times of year also offer a uniquely local or seasonal hook for consumers to buy into, an attribute that also helps to confirm these products’ craft credentials. The name of Seedlip Garden 108, for example, references how many days to seed, sow and hand-harvest peas, one of its main distillates.

INNOVATION OUTSIDE OF GIN Some botanicals can be divisive: a dislike of juniper is cited as the reason some consumers don’t like the flavour of gin. This has created an opportunity for spirits outside of gin. Adding botanicals – excluding juniper – to categories such as vodka may appeal to such consumers seeking an alternative. As many botanicalled spirits are made by re-distilling neutral spirits with select botanicals, consumers can opt for a spirit with the complexity of gin, without the bitterness of juniper. Brands must be careful of the level of flavour and the balance of the botanicals used in their products if they’re not to isolate consumers. With proven consumer interest in botanicals, it makes sense that plantsourced flavours and ingredients are now making an appearance in an ever-diverse array of categories. Though estimates on the number of plants edible by humans varies, it is estimated that around 300,000 are suitable for consumption. However only around 200 species are currently eaten globally. The possibilities for drinks makers are vast. In fact, new alcohol ‘free spirit’ Feragaia has sourced a number of its botanicals from the sea, something we may see more of in future launches. Floreat, for example, is a sparkling wine launched for the UK market that aims to link wine with wellness through its use of botanicals chosen for their mind- and mood-boosting properties. Its new expression contains 300 herbs and botanicals blended with Pinot Grigio from northern Italy and manufactured to medical-grade herbal standards. The beverage also contains vitamins C, B, E and zinc. Other spirits that have innovated with botanicals includes UK vodka, Broken Clock, which has been infused with garden botanicals to create a liquid with a complex and long finish. Designed to have the character and complexity of a gin, but without the juniper, the liquid has been inspired by English country gardens.

Amsterdam’s Spirited Union Distillery has launched a botanical white rum, a deliberate swerve away from overly sweet flavours in rum. Looking at ales, The Good Living Brew Company in the UK has launched Binary Botanical Ale, which is a vegan and gluten-free light beer with a “tangy and aromatic profile.” The beer is aimed at wine, cider and beer drinkers. Dutch botanic brewer Lowlander launched a brew inspired by the island of Curacao. Made with vitamin C-rich Curacao orange and dragon fruit, Lowlander Island Summer Ale was made to honour the medicinal properties of the island’s flora and fauna. BOTANICALS OFFER A FEEL-GOOD FACTOR Botanicals offer consumers the feel good factor, as well as a tangible draw to those who may not understand or care about other aspects of drink production, such as triple distillation, or chill-filtration for example. Their association with low and no-alcohol drinks also helps them tap into a consumer base focused on moderation and wellness, especially when it comes to botanicals associated with a functional benefit. Sustainable sourcing, such as using ingredients that would otherwise have gone to waste, can also help brands reach consumers looking for products that are not only better for them, but better for the planet. For more insights from the IWSR, head to www.theiwsr.com THE SHOUT NZ – FEBRUARY 2020 7

Perfect for celebrations or just with friends! E: sales@matahiwi.co.nz

W: matahiwi.co.nz

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Wine Intelligence has revealed its annual predictions for the wine category this year, and says they reflect global challenges for the industry…

ichard Halstead, COO, Wine Intelligence – a research and insights agency focusing on wine consumer insights – says wine is a “risky business,” pointing to challenges around climate change, discretionary consumer spending influences in different countries and global trade policy changes. There are five predictions for the first year of the decade, in which Halstead says: “We see the continuing arc of some existing behaviours, and the appearance (or re-appearance) of a few others).”

WINE VOLUME CONSUMPTION WILL GLOBALLY DECLINE Wine Intelligence sees the developed world drinking less wine in 2020, but overall, the value of wine consumed won’t be heavily impacted. “Those drinking less wine have compensated by spending more on the wine they do buy, with the characteristic result that prices per bottle have been rising considerably for several years now in major consumption markets,” says Halstead.

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There’s a prediction that this trend could mean trouble for the producers and brands with business models dependent on selling more for smaller margins. However, this trend also noted that consumers are looking for brands that are thoughtful, have provenance or are culturally interesting. In this way, premiumisation is about not only the price and quality of the liquid, but also of the brand’s story and actions. SUSTAINABILITY CLAIMS WILL BE SCRUTINISED Environmentally friendly buzzwords are thrown around commonly on wine packaging and marketing these days, and it’s predicted that the coming year will see consumers investigating these claims. While Wine Intelligence research suggests that many consumers read a sustainable word and believe it, Halstead says: “We also notice a smaller but growing minority of purchasers are more fundamentally committed, typically for a combination of environmental, ethical, social or lifestyle reasons. “Next year I expect this latter group to be more zealous in their scrutiny of winemaking or viticultural claims, and more willing to call out what they see as transgressions or unacceptable standards.” CBD WINE WILL BE EXPLORED FURTHER Cannabis-based drinks have been on the radar of predictions for a while now, however, considering an array of different laws in countless different jurisdictions, they have yet to take off. “As with many things in our industry, cannabis drinks products remain at the mercy of regulators in most jurisdictions, not to mention some serious THE SHOUT NZ – FEBRUARY 2020 9

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product development and taste optimisation challenges,” says Halstead. While Wine Intelligence is not anticipating mainstream acceptance or popularity of cannabis wine drinks in 2020, they do predict more companies will start to explore it. In New Zealand, the cannabis bill – which will be voted on by the public at the 2020 general election – would allow cannabis to be consumed, sold, and purchased for recreational use, by people 20 years or older. What this will mean for the future of CBD drinks in the country remains to be seen. PRODUCTS FROM LESS HIGH PROFILE WINE COUNTRIES WILL BECOME MORE POPULAR Wine Intelligence predicts countries like Germany, South Africa, Portugal and Greece, will see great growth in the popularity of their wine products. “We believe 2020 will be a year where some old styles become new again to the next generation of consumers,” says Halstead. He points to specific examples, including German Riesling, refreshing whites and red blends from South Africa and Portugal, and lighter white styles coming from Greece. Halstead described the common thread of these products and says: “All will be meeting the growing consumer needs for more aromatic, fresh, lower alcohol whites, and lower tannin but interesting reds.” 10 THE SHOUT NZ – FEBRUARY 2020

GREATER INVESTMENT INTO CREATIVE PACKAGING AND SERVE FORMATS “Our prediction is that we will see far more innovation in packaging coming to market next year than we have in the past few years, driven by the needs of business to reduce carbon footprint, to offer more recyclable containers, and to offer serve sizes that fit an age devoted to lowering volumes but increasing values,” says Halstead. The prediction centres around the idea that brands will be focused on labelling and designs that stand out to busy and more visually oriented consumers, while also being classic

enough to reassure shoppers of their quality. Look out for different bottle shapes, icons and colouring that go against the grain of what else is on the shelf. In terms of how accurate these predictions will be, there’s a fair chance these points will ring at least a little true. Wine Intelligence’s 2019 trends predictions were valid, with three out of five trends being more than 80% correct. For more from Wine Intelligence, visit www.wineintelligence.com Story by Brydie Allen, originally featured on www.theshout.com.au n

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often get asked by wine friends visiting New Zealand for the first time to recommend places to stop by, especially wineries. Marlborough is always on that list because its landscape, agriculture, heritage, chocolate, museums, fantastic wineries and wine have a lot to offer. With 21% of wine producers (150 brands) located in Marlborough, the region is still a significant player in New Zealand’s wine scene. New Zealand’s most important variety Sauvignon Blanc dominates the landscape of vines. Excellent Riesling, Chardonnay, Gewürztraminer, Viognier, Grüner Veltliner, Albarino, Pinot Noir and Syrah is made into some interesting and often delicious wine. Across the whole region organic and bio-dynamic farming practices can be seen. Marlborough gets a lot of sunshine, which is great for the grapes, but