FMCG Business March 2019 by The Intermedia Group

fmcgbusiness.co.nz

L E A D I N G

I N D U S T R Y

N E W S

March 2019 – Volume 6 – No 2

PLUS! CHOCOLATE & CONFECTIONERY n CHILLED CONVENIENCE n BREAKFAST STARS NEW ZEALAND’S LARGEST FMCG AUDIENCE

contents MARCH 2019

UP FRONT

EVENTS

Editor’s note

Industry news

33 The Food Show returns to Wellington

8 Gear New tech for work, rest and play

33 What’s On Events for your diary

CATEGORY INSIGHTS

35 Out & About Our people - spotted at local events

12 BREAKFAST FOODS 19 CHOCOLATE & CONFECTIONERY

REGULARS 10 Best in season Fresh produce update 11 What’s Hot New products in store 24 Let’s chill! Convenient chilled products are top of the shopping list. 26 Company profile Pitango

GOOD BUSINESS 28 Buy NZ Made Packaging NZ made products sustainably 29 FGC Are we facing a Global Syndemic? 30 Legal Advice Changes to the 90-day trial period

THE SHOUT 3

Editor’s picks

4 Sarah Jessica Parker teams up with Invivo 6 World-Class celebration of Sauvignon Blanc 7

Cover story Defiance proves successful for Domain Road

8 Pink is the new pink Tasting Notes from Cameron Douglas MS 10 Bucketlist Wines of Central Otago 12 Brewing in New Zealand An economic report 14 Inside the world of Irish Ales John Oszajka has us all wanting to claim a bit of the orange and the green. 17 NZ’s Hottest Craft Beers

31 Recruitment Top tips from Claire Ellis, Partner at Convergence Partners 32 Export

FMCG BUSINESS - MARCH 2019

[ editorial ]

NEW PRODUCT EVOLUTIONS

he world of FMCG is constantly changing. It’s fascinating to see new concepts emerge (who saw charcoal buns and crickets coming?) and iconic products evolve further. Big ice cream brands are unveiling vegan offers this year and social media influencers are all over it. New packaging is now designed to appeal to our aesthetics and values of sustainability. Packaging is a powerful opportunity for a brand to tell consumers what their product represents, explains Buy NZ Made Executive Director Ryan Jennings on pg 28. Tatua’s premium cream pouch range, as seen on our cover, is recyclable and now offers lower environmental impacts in terms of energy consumption, waste generation and emissions to air and water. Tatua’s new pouches are set to hit supermarkets in April. They stand up steadily on shelves and in response to high demand, all Tatua specialty cream pouches will also be resealable. You can find out more about this clever new design on pg 25. Meanwhile, the size of some much loved chocolate and confectionery packets is shrinking. A few brands have recently changed their original recipe and packaging - and consumer backlash was instant. Products need to evolve and adapt to meet consumer demands, but it seems ‘NEW’ is not always better and sometimes less is… well, less. To help you and your team navigate this fast-paced, challenging landscape, marketing managers and local experts at the coalface of the FMCG industry share their advice, news, and essential statistics in every issue of FMCG Business. Find out what’s driving sales in chocolates and confectionery right now (pg 19-24) and see what’s on trend in Breakfast Foods on pg 12-18. Join our conversations on Facebook, Instagram or Twitter, where you can win some exciting prizes. For more breaking news, events, awards and top trend forecasts you can also subscribe to our e-news here: https://www.fmcgbusiness.co.nz/subscribe/ Enjoy this issue,

PUBLISHED BY The Intermedia Group Ltd 505 Rosebank Road, Avondale Auckland, 1026, New Zealand ph: 021 361 136 PUBLISHER Dale Spencer dspencer@intermedianz.co.nz EDITORIAL DIRECTOR James Wells The Intermedia Group Pty Ltd AUSTRALIA james@intermedia.com.au HEAD OF CONTENT Tamara Rubanowski trubanowski@intermedianz.co.nz ph: 027 278 4761 NATIONAL SALES MANAGER Joel Bremner jbremner@intermedianz.co.nz ph: 021 370 065 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 THE SHOUT SALES DIRECTOR Jacqueline Freeman jfreeman@intermedianz.co.nz ART DIRECTOR Ryan Vizcarra ryanv@intermedia.com.au HEAD OF CIRCULATION Chris Blacklock cblacklock@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

fmcgbusiness.co.nz

L E A D I N G

I N D U S T R Y

N E W S

March 2019 – Volume 6 – No 2

ON THE COVER Tatua Dairy Company’s New Zealand made specialty creams now have a brand-new modern look. Read the full story on pg 25-27.

PLUS! CHOCOLATE & CONFECTIONERY n CHILLED CONVENIENCE n BREAKFAST STARS NEW ZEALAND’S LARGEST FMCG AUDIENCE

FMCG BUSINESS IS PROUDLY ASSOCIATED WITH

FMCG BUSINESS - MARCH 2019

FMCG Business is audited and verified by ABC.

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 © 2019 - The Intermedia Group Ltd

oat-ola launching april

new

$10.99 RRP range!

[ news ]

Nelson’s new star attraction Pic’s Peanut Butter World became Nelson’s newest ‘star’ attraction when it opened the big ‘star’ doors to reveal its purposebuilt destination for people to see the delicious product being made. The new building houses a 500sqm foyer that features an attention-grabbing spiral staircase and public café, offices, plus an exhibition and tour mezzanine overlooking the factory.

Pic’s Peanut Butter founder Pic Picot

Visitors can watch as the peanut butter is made, meet the people who make it, they can even make their own and learn more about Pic Picot’s journey from producing his first batches in a concrete mixer to today’s state-of-the-art plant. The site contains many quirky exhibits and was described by the architect as “Charlie and the Chocolate Factory, but with peanut butter.” Pic’s is now sold in Australia, Hong Kong, Singapore, Malaysia, China, the UK and the US.

International Award for Melbourne supermarket Melbourne locals can now proudly boast that they have one of the world’s best supermarkets right on their doorstep, after Ritchies Supa IGA Dromana won the coveted title of IGA International Retailer of the Year. The award was presented to Fred Harrison and Jarrod Swaine from Ritchies Stores, at the international IGA conference in San Diego, USA. The store is owned and operated by the Ritchies group, which has been operating in Australia for almost 150 years and is now the nation’s largest independent supermarket and liquor Retailer. The international accolade for Ritchies Supa IGA Dromana follows the innovative supermarket being named 2018 National Retailer of The Year, Supa IGA Store of the Year and Supa IGA Bakery Department of the Year, as well as taking home the Retail Transformation & Innovation Award at last year’s IGA Australia Awards. Ritchies Dromana is the complete package for modern day grocery retailing and has become famous for being a foodie’s paradise. A wide range of products sourced from around the world, energy-efficient refrigeration, low-line bakery display units, wine barrel display tables in produce and the Himalayan salt wall in the meat dry aging room, all help to create a visually impressive store. With a focus on fresh food, from the seafood display and sushi kiosk, to the international cheese bar and fresh meals counter, shoppers can find everything they are looking for and more. The modern design of the new supermarket has cleverly incorporated some visual images of its history. “There are not many businesses today, still family owned after 148 years and continuing to grow stronger in a very competitive retailing environment,” Fred Harrison, CEO of Ritchies group said.

“Our business is about unique ranges. Our main point of difference is that we are working with our supplier partners to range many products that are exclusive to Ritchies. These include hard to find specialty items as well as all the traditional lines found in a large supermarket. As an independent supermarket, we are better placed than many, to tailor our fresh offerings and provide unique grocery items.” “We have an incredible team, loyal employees and a great local community whose needs are at the heart of our business. These relationships are the cornerstone of our success. This award is a result of the hard work and commitment put in by all the team that contributes to the success of the Dromana store.” Source: c-store.com.au

FOR MORE INDUSTRY NEWS FOLLOW US ON

CHECK OUT WWW.FMCGBUSINESS.CO.NZ

FMCG BUSINESS - MARCH 2019

[ news ]

New lead at Foodstuffs Own Brands Pams, Value and Pams Finest will be driven by a new leader from April 1. Lisa Oldershaw will join Foodstuffs Own Brands Ltd (FOBL) as General Manager with support from an exceptional team. Lisa is currently New World Banner Manager at Foodstuffs North Island (FSNI). Since joining the team in July 2018 Lisa has worked to drive New World’s market position across the North Island. In just a few months Lisa has led the New World banner team with the right mix of innovation and challenge, while keeping things simple and always focused on what’s best for the customer. Chris Quin, CEO FSNI says, “We had a very competitive recruitment process with several team members stepping up wanting to lead the growth of one of New Zealand’s biggest brand portfolios. It was incredible to see the high calibre of applicants for this role from across our two co-ops and it’s exciting to see our talented team members developing into leadership roles like this; FOBL is a big part of our Foodstuffs business.

Ideas Served Hot

Lisa brings with her 23 years of retail experience, including Tesco in the UK where she spent 13 years in a variety of buying and category management roles. The private label business is fiercely competitive in Europe and the UK and Lisa’s understanding of this will add to FOBL’s extraordinary team and talent. Lisa moved to New Zealand in 2007. She says, “Pams is a beloved staple in virtually all Kiwi households – and we’re only going from strength to strength. We’re now often market leader in a number of key categories. Whether the customer is looking for superfoods, exotic spices, ready-tobaste Christmas hams, fresh salad greens, or the finest and best value Italian chopped tomatoes; Pams, Value or Pams Finest have it all.” Current GM Rod Gibson heads off to the role as CEO at Vetcare and Animates having made an outstanding contribution to Foodstuffs over the last 11 years.

Lisa Oldershaw will join Foodstuffs Own Brands Ltd as GM.

[ gear ]

Microsoft Surface Go

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

Microsoft’s Surface Go is proof that good things do come in small packages. Sporting an ultra - affordable sticker price, the Surface Go is Microsoft’s take on their already hugely successful Surface tablet/PC combo. Priced at a mere $699 (64GB storage/Intel 4415Y/4GB RAM), plus $220 for a detachable keyboard cover, The surface sports a 10” display and kick stand, making it an ideal travel companion. https://www.microsoft.com/en-nz/p/ surface-go/8v9dp4lnknsz?activetab=pivo t%3aoverviewtab $699

Ultimate Ears Megablast

Cat S61 Ruggedised Smartphone There’s nothing quite like that sinking feeling when you drop your $1200 smartphone onto concrete. The folks from earth mover equipment company CAT have you covered. They’ve got the S61 ultra rugged smartphone designed for tradies. It can take a 1.8 metre drop onto concrete and is also water-proof. It has a passive thermal infra-red camera (ideal for locating hot water pipes) and a laser ruler, making it the perfect choice for construction sites. https://www.catphones.com/en-gb/cat-s61smartphone/ $1,598

FMCG BUSINESS - MARCH 2019

This scorching summer has seen BBQs getting a workout up and down New Zealand. Part of the Kiwi BBQ experience is music - preferably loud music. Given New Zealand’s unpredictable weather, it’s probably a good thing that Logitech’s Megablast is waterproof and built to handle the odd knock or bump. It also delivers surprisingly decent audio. The Megablast’s battery life is a respectable 12-16 hours and as an added bonus, if used within WiFi coverage, you can use the built-in Amazon Alexa digital assistant. https://www.ultimateears.com/en-nz/wireless-speakers/ megablast.html $328

[ fresh produce ]

BEST IN SEASON

ummer crops are coming to an end and we are moving towards the autumn crop. However, there are still plenty of summer vegetables available, including beans and hothouse varieties such as capsicums, tomatoes and eggplant. Two exotic fruit that will be appearing are persimmons and the spiky horned melon, Kiwano. The second crop of raspberries will be available this month and there are some delightful, new and improved varieties in New Zealand now. These have a longer shelf life for retailers and a longer life for the consumer at home, so it’s worthwhile to keep plenty of raspberries in stock. At this time of year, the only other berries around are blueberries. New season pumpkin is also starting and don’t just think traditional crown pumpkin – there is a broad range including buttercup, butterkin, butternut and spaghetti squash.

Californian Mandarins

PEARS HAVE A VERY DELICATE SKIN, SO BE CAREFUL WHEN HANDLING.”

FMCG BUSINESS - MARCH 2019

What to look for: Avoid any pears with large dark or mushy spots and tears in the flesh. These are the common indicators of a bad pear and mean that the fruit will decay faster than normal. Storage/handling: Pears have a very delicate skin, so be careful when handling to avoid bruising. If pears are not ripe, ripen at room temperature and then refrigerate. Nutrition: Pears are a source of Vitamin C and a good source of dietary fibre.

Nashi Pears Another pear to feature in March is the Nashi pear. Nashi’s are only around for a 6-8 week window. They don’t store well so it’s important to make the most of them during that time and to merchandise them well. What to look for: Nashi pears are harvested when ripe, so look for firm fruit that feels heavy for their size and are light yellow-green in colour. Over ripe Nashi pears will turn a rich golden colour and lose their crisp texture. Storage/handling: Store ripe Nashi pears in the fridge for up to two weeks, and handle with care as they are delicate, despite their firmness. Nutrition: Nashi pears are a source of Vitamin C and also a source of dietary fibre.

Mandarins are recognised worldwide as the fastest growing citrus category. This month, retailers have access to the magnificent Afourer mandarin from California and it is a good idea to take advantage. Afourer mandarins are easy-peel and are a favourite with 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 and store in an area that allows for air circulation. Nutrition: Mandarins are a source of dietary fibre and Thiamin, and are a good source of Folate and Vitamin C. They also contain Potassium which is one of the most important minerals in the body as it helps regulate fluid balance, muscle contractions and nerve signals.

Pears March is the month to feature pears – and a good range of them. Varieties to choose from include the traditional Packham, Winter Nelis, Winter Cole, the favourite Beurré Bosc, and the beautiful eating Doyenne du Comice and Williams bon Chrétien – also known as the Bartlett pear.

Join us on

www.unitedfresh.co.nz

Celebrate Easter with Westgold For a limited time Westgold’s awardwinning butter is available in four beautifully designed Easter packages. Westgold butter is traditionally churned on the West Coast, from fresh cream, in a timehonoured tradition that dates back to 1893. Generations of West Coast pride and dedication are packed into every block. Westgold.co.nz

Local, Leading Oats Brand Unveils a Refresh! Harraways is bringing to market in stocking stores from April 2019: • Raspberry & Toasted Coconut 800g bulk porridge. Uses freeze dried raspberries! • 100% recyclable packs for much of its range • Within quick serve oat sachets range – less wasteful box, using 20% less cardboard, home compostable sachets, & each serve 20% larger than average when comparing against the average in the market* (*IRI NZ, October 7th 2018) For more information contact Harraways: P: +64 3 488 3073 E: enquiries@harraways.co.nz W: harraways.co.nz

NEW Sujon Fruit Cups Introducing the first healthy frozen convenient snack for adults & kids. Fruit cups contain 100% fruit and are available in 3 delicious flavours; Mixed Berries, Mango and Blueberries. Keep your lunchbox cool while the fruit thaws or eat the fruit frozen straight from the cup. For more information visit www.sujon.co.nz

Tatua Unveils Fresh New Packaging Introducing... your favourite New Zealand made specialty creams in new-look, recyclable pouches! The new Tatua pouches are self-standing, resealable and create less waste – and they now come in a 500g size, so there’s enough Tatua deliciousness to last the week! Tatua Dairy Whip and Tatua Chocolate Mousse are getting a makeover too, with the same great-tasting product inside. www.tatua.com

NEW Mother Earth Better Bars Mother Earth Better Bars, a NEW chewy muesli bar that has LESS THAN A TEASPOON OF SUGAR PER BAR, without compromising on deliciousness! We’ve reduced the sugar in each bar by adding plant-based chicory root fibre. There are three delicious flavours in the range; Raspberry, Chocolate Berry and Caramel Flavour. Made in New Zealand with a source of fibre & no artificial sweeteners, colours or flavours. For more information contact your Prolife Foods Account Manager on 0800 80 80 88 or visit www.motherearth.co.nz

FMCG BUSINESS - MARCH 2019

BREAKFAST STARS

“But now watch out for our new range of granolas. Launched in February, how do you choose between Manuka Honey & Almond; Raspberry & Vanilla; and Apple & Maple? This is a wholesome, oaty and ridiculously great tasting range of granola. It is also free of sulphites, contains up to 30% less sugar and 30% more nuts and seeds than the competition. Our bloody delicious Granola is a serious value proposition,” he says.

Reinvigoration at Ceres

lue Frog Founder Scott Baragwanath has set out to make breakfasts a lot more exciting. “At Blue Frog Breakfast we bring the bling to breakfast and encourage our customers to abandon themselves to bold flavours and brave moves – an epicurean wholefood adventure – be it gluten free, grain free, plant based or just great wholefood cereal,” he says. “Probiotic porridge flew out the doors in 2018, on the back of our amazing 440gm pack. The Blue Frog Breakfast brand is growing at more than 110% MAT, far exceeding the category growth.” Baragwanath says November 2018 was “big for New Zealanders with the legalisation of hemp for consumption. Blue Frog was ready and waiting. Our new Central Otago Apricot, Vanilla and Hemp Heart Cereal dials up the trends that are so important to our customers – provenance of ingredients, powerful superfoods, all in a delicious gluten-free format. Our apricots were picked in late January, freeze dried and blended into our cereal within seven days, another exciting addition to our Super Premium range. The only Apricot flavour in the category, it’s another wee first for Blue Frog. 12

FMCG BUSINESS - MARCH 2019

Innovation is also happening at Ceres Organics. “Breakfast is the perfect time of day to ask yourself what you plan to achieve and set your goals,” says Trade Marketing Manager, Jo Calladine. “We have taken this thought and applied it to our classic muesli range, reinvigorating it while staying true to the organic values we set back in the 1980s. “It’s the bringing together of quality ingredients from New Zealand and around the world. Grown organically, they adhere to sustainable practices that regenerate soil and work with the natural environment, rather than taking away from it,” Calladine says.

Bloody Delicious Granola Introducing our New Premium Mainstream Range

Taste the summer sunshine The First Zesty Apricot & Hemp Heart Gluten Free Cereal Central Otago freeze dried apricots Hemp hearts Heilala vanilla bean

FRO M N Z â&#x20AC;&#x2122;S MOST AWARDE D B R E A K FAST B R A N D Contact: Your local Centurion NZ representative OR Scotty@bluefrogbreakfast.co.nz | www. bluefrogbreakfast.co.nz

[ category insights ]

NESTLÉ IS NEW ZEALAND’S FASTEST GROWING CEREAL MANUFACTURER.”

The ingredients are roasted and toasted in West Auckland, then bagged into home compostable packaging ready to be promptly buried once the product has been eaten. “Each packet is one less piece of petro-chemical based plastic in landfill. These innovative packs are made from renewable resources, such as cellulose, a renewable raw material from trees, and GM-free corn sources,” she explains. “Ceres Organics reinvigorated this range with each SKU having unique selling points. Apricot Almond now has chunkier apricots, more almonds and is sweetened with coconut sugar. Classic Bircher is great hot or cold and has no added sugar. Honey Toasted is five simple ingredients including New Zealand honey. Gluten Free includes superfoods: quinoa, buckwheat, and amaranth. Lastly, Golden Crunch is fruit free, with more cashews and now made with coconut oil. “The combination of ingredient improvements, clear messaging and sustainable packaging is not going unnoticed. Unit growth is up 27.6% vs year ago (IRI Scan data quarter to 09/12/18). With 72% of New Zealanders concerned about plastic waste (Colmar Brunton Better Futures Report 2019) it’s not surprising. “The uplift in sales is very promising. We’re on the right-track, consumers are wanting to play a more active part in caring for the environment and perhaps unknowingly a much wider sustainability picture. We’re thankful our 1980s beliefs are still very much in play. The original spirit of Ceres Organics is still very much a part of what we do today,” says Calladine.

Nestlé crunchy granola Adrian McKegg, Brand & Activations Manager Cereals, says Nestlé is New Zealand’s fastest growing cereal manufacturer and third largest branded breakfast cereal supplier in the country.* “With products in nearly every segment of the breakfast category including oats, muesli, ready to eat cereal and kids’ cereal, Nestlé offers a range to suit most consumer’s needs. “Growth in recent years has come from getting more Kiwis eating oats with Nestlé’s market leading brand UNCLE TOBYS Oats, and through its newest brand O&G (Oats & Grains), a delicious range of crunchy granola,” he says. “O&G Crunchy Granola has become one of the fastest growing crunchy granola brands since launching end of April 2017. Its newest flavour Blueberry & Coconut went on sale in March last year and is now the most popular seller in the range with its irresistible taste and textures, delicious oat, rye and barley clusters, blended with sweet blueberry pieces and shaved coconut!” “In October last year O&G Crunchy Granola launched a new advertising campaign to establish itself as the brand that understands that while mornings are not great for everyone, O&G 14

FMCG BUSINESS - MARCH 2019

Crunchy Granola makes them worth getting up for – it’s the ‘Breakfast for People Who Hate Mornings.’ The campaign has been brought to life through outdoor and digital advertising portraying the daily morning struggle many of us face, with an element of humour,” says Mr McKegg. “It is now available in most leading supermarkets nationwide. In four delicious flavours the O&G Crunchy Granola range includes Blueberry & Coconut, Almond & Cashew, Cranberry & Hazelnut and Vanilla & Almond.” *Nielsen NZ Grocery Scan Data FY 2018

New options from pure delish This year got off to an excellent start at pure delish with founder Kaz Staples being recognised in the New Year’s Honours List for services to the food industry. “It’s been an incredible journey so far with a lot of amazing people who have come along for the ride and played a huge part in growing the business to where it is today,” she says. April will see pure delish launch a new range of cereals to the breakfast aisle. “It’s all about the oats with each cereal being uniquely different and totally hand made from only the highest quality ingredients, with no refined sugars, sulphites or nasties,” explains Staples. “Most importantly, we guarantee they will taste amazing. The new oatbased cereals will offer consumers a more affordable option to their current range, she says. “The second half of 2019 will see us launching into a new category with a range of products designed to bring a whole new level of premiumisation to a traditional supermarket aisle. The new range will see pure delish’s brand presence in stores increase and the new range will have wide appeal to our already loyal and committed following. “We’re continuing our distribution drive for the new pecan, ginger and coconut no-grain-ola cereal launched late 2018. This, added to our top selling grain-free range of no-grain-ola cereals, and with the delicious blend of pecan nuts and spices, is already proving to be a winner with consumers. With the festive season and moratoriums over, pure delish expects to see some real distribution and sales growth over the coming months,” says Staples.

6AM YOGA?

NAMASTE IN BED

Crunchy Granola FOR PEOPLE WHO HATE MORNINGS

[ category insights ] Smartfoods – Vogel’s

HARRAWAYS HAS RENOVATED ITS CORE RANGE OF PRODUCTS WITH A RECOGNISABLE ‘HOMEGROWN’ THEME.” MARKETING & PRODUCT INNOVATION HEAD, PETER COX

Vogel’s muesli continues to flourish in New Zealand Grocery, with its $66.1m revenue in the latest MAT* driven by Toasted ($29.7m) and Granola ($14.1m), says Marketing Manager for Smartfoods Limited, Della Fan. Smartfoods is the manufacturer and brand licensee owner for Vogel’s cereal. “Vogel’s Café-Style remains the largest sub-brand in Toasted Muesli, commanding 18.5% dollars share, versus 10.3% for the nearest competitor subbrand.* She says two new Toasted mueslis are now available: “cholesterol-lowering Café-Style South Island Oat & Sorghum; and gut-friendly Café-Style Kombucha. “Growing at 67.3% vs YA and vying for the number two spot in Total Muesli,* it’s no surprise that 2018 was the year of granola. Granola has exploded in recent years, expanding from 19 active SKUs at the start of 2016 to 74 in the latest MAT. While it’s clear that the Kiwi appetite for granola shows no sign of slowing, how long will it be before shoppers see through the hype and examine the back-of-pack? “Kiwis are becoming ever more aware of the effect sugar can have on their health, and the health of their families. Their shopping behaviour is changing, with sugar content playing a key role in the products they choose. We can see this across numerous categories through the proliferation of low sugar options, from condiments and beverages to tinned goods and ice cream. “So how sugary is your breakfast aisle? Give your shoppers a lower sugar option with Vogel’s Delightful, our new premium granola with mouthwatering ingredients and 40% less sugar than the leading market granola,” says Fan. *Source: IRI - SCAN, Muesli, Data to: 20/01/2019

Fresh look for Harraways Harraways, “New Zealand’s favourite oats,” has an exciting new look for its brand coming soon, says Marketing & Product Innovation Head, Peter Cox. “Since Harraways began in 1867, it has become famous for its high quality, distinctive tasting rolled oats that Kiwis love for breakfast. Harraways now commands a market leading 45.5% dollar share* of the $22 million traditional New Zealand oats business,” he says. “The brand’s large and committed fan base has bought into its unique local point of difference over the years. An updated look and feel, along with a comprehensive marketing programme, will build on Harraways long history as New Zealand’s favourite traditional oats brand. “Harraways has renovated its core range of products with a recognisable ‘homegrown’ theme. Harraways is doing its bit to help the planet with 100% recyclable packaging made from sustainable wood pulp for much of its range,” says Cox. “To support this rebrand, a delicious new flavour has been introduced to the Harraways family of oats – Raspberry and Lightly Toasted Coconut with freeze-dried raspberries – this is sure to be a new family favourite. “The quick serve oat sachets now come in a less wasteful, recyclable box, using 20% less cardboard. The sachets are newly made with homecompostable material. These single serve sachets are 20% larger than the average single serve sachet across the range when compared against all other single serve oats offerings within the New Zealand grocery market,” says Cox. “The Harraways rebrand programme will include a gift with purchase offer to help shoppers pick up the new look branding. Consumers will receive a re-usable grocery bag when they purchase any two Harraways Rolled Oats 800g and/or Scotch Oats 850g packs. This promotion will run from April 2019, in select grocery outlets across New Zealand. Cox says a refreshed Harraways website www. harraways.co.nz will be launched simultaneously with the rebrand, along with updated social media campaigns. The new core range will be supported online with recipes. *IRI NZ Data. October 7th, 2018

FMCG BUSINESS - MARCH 2019

“We are proud to support a cause that is close to the hearts of so many Kiwis and are looking forward to getting our ‘pink’ on in May 2019. Look out for on-pack labels on our entire muesli range, in-store promotions and consumer marketing activity to drive sales and brand awareness. Later in the year we’ll be celebrating our fifth birthday, a huge milestone we plan to celebrate with a delicious new muesli flavour.” *Total Breakfast Category Growth +1.1%, (Source: IRI Total Supermarket Sales to WE 06/01/19)

A great deal to crow abut With a range of premium cereals targeting healthconscious, on-trend foodies, the owners of Something to Crow About, Mike and Chris Millar, have established their company as one to watch, as the latest category data shows. “After achieving significant year on year growth over the last few years, Something to Crow About ranks 11th out of more than 40 other breakfast manufacturers in the category and is the clear number 2 in the premium space,” the Millars explain. “The momentum continues with the brand driving growth sales accounting for 23% of total breakfast category growth in the last 12 months. It is New Zealand’s fastest growing premium breakfast brand for the second year in a row.*” “Something to Crow About offers a delicious range of six premium mueslis, delivering high margins for retailers,” says Mike. “The range includes gluten free, paleo blends and vegan options.” To celebrate this success, the owners have decided to give something back to the community. “We’re excited to announce our partnership with the New Zealand Breast Cancer Foundation as official sponsors of the Pink Ribbon Breakfast in 2019,” says Chris. Source: NIELSEN SCANTRACK Total Supermarkets - MAT to 27/01/2019 Val Sales

Val % Chg YA

Breakfast Cereals

292,263,931

0.5%

Family

91,413,977

0.0%

Adult

58,632,365

4.1%

Muesli

47,185,350

1.7%

Convenience (Liquid)

33,580,442

-3.3%

Kids

24,760,712

0.3%

Hot - Standard

23,979,947

-3.6%

Hot - Sachet

12,711,139

4.1%

Cereal Bars

9,098,684

-2.7%

Hubbards “Hubbards granolas are crispy, crunchy and delicious,” says Rebecca Bergs, Marketing Manager. “People tell us they love the flavour and texture combinations, and that Hubbards granola is their new go-to breakfast option. We are very pleased with how the range is redefining breakfast for New Zealand” “The Hubbards Granola range has contributed significant growth to the $65m New Zealand muesli market over the last year. It’s now a $5.5m range, and the Raspberry & Cranberry and Pistachio & Almond granolas are now the No. 1 and No. 2 skus in the total muesli market,” she says. “Furthermore the range has strengthened Hubbards’ brand leadership in the category, taking it to almost a 28% share of the muesli market.” Innovation is an ongoing focus at Hubbards. Last year the company took the brand into the portable breakfast segment. Building on its muesli expertise, Hubbards developed a range of oat-based breakfast bites, and launched Big little Brekkie. Each single-serve pack contains three oven-baked oat bites that contain a blend of muesli-inspired ingredients such as fruits, nuts and seeds. “The bites are ready-to-go, no preparation required. They provide people in a rush, a great start to the day,” says Bergs “We found that people struggled to find an on-the-go breakfast option that was nourishing and tasty at the same time. Each bite is a sensory delight with layers of texture and taste delivering a satisfying eat.” The Big little Brekkie range has seen the Hubbards brand enter new convenience sales channels driving a stronger presence for the brand. Source: Nielsen, MAT to 24 Feb 2019

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 jbremner@intermedianz.co.nz . 18

FMCG BUSINESS - MARCH 2019

SWEET TREATS I

s there anyone in the world who doesn’t love the occasional sweet treat? Whether it’s a gift to yourself or from somebody else, it’s a way of making our everyday lives seem so much more pleasant. Chocolate is without doubt the world’s most adored culinary treat, especially at Easter. And New Zealanders have the choice of the best products in the world.

Leading with innovation Long represented in New Zealand by DKSH NZ Limited, Swiss-based company Lindt & Sprungli is bringing innovation to the gifting category and is driving sales growth once again with the launch of Lindor Pistachio. “Sales are flying and consumers are loving this recipe,” says DKSH Senior Brand Manager, Ken Davis. “Melt into a moment of bliss with new Lindor Pistachio, the finest Lindt milk chocolate shell encasing a delicate, smooth melting Pistachio filling. Crafted by the Lindt Master Swiss Chocolatiers, this perfectly balanced combination of chocolate and pistachio is sure to become a classic Lindor.” Davis says Lindt boxed chocolates grew by 7.5% $ value in the Qtr. in TKA to 30/12/18 IRI data. “The Lindor TVC/social media and sampling campaigns will continue throughout 2019 to drive consumer demand. The Lindor range still has the same delectably smooth Lindor balls with the smooth melting centres, which appear to be melting New Zealand palates as well.”

More Lindor launches will come later this year, says Davis. “The iconic Lindt Gold Bunny is back in store now and will be available in new pack sizes this Easter, such as the Gold Bunny White 200g. “Lindt also has a new premium inclusion egg range this year to excite consumers with recipes such as Lindt Dark Egg with Caramel and a touch of Pink Salt; and Lindt Milk Egg with Honey and Roasted Macadamia. “Lindt leads the dark blocks market with innovation, launching the Excellence Smooth Blend 70% Cocoa recipe in 2018. “Created with a special blend of milder cocoa beans to ensure an exquisitely smooth and mild taste experience that builds on Lindt’s expertise as the masters of dark chocolate.” “The Excellence % Cocoa recipe sales grew at a staggering 27% MAT in TKA to 30/12/18 Aztec data,” Davis says. “Excellence blocks are most often consumed in the evening as part of the nightly ritual once the kids are in bed. Excellence fans will be excited with our new recipe launches coming later in 2019.”

LINDT LEADS THE DARK BLOCKS MARKET WITH INNOVATION.” DKSH SENIOR BRAND MANAGER, KEN DAVIS.

Exciting times for RJ’s RJ’s has been manufacturing the finest licorice for over 23 years in Levin. “It’s not only one of the biggest employers, but we like to think has helped put Levin on the map,” says Marketing Manager Tracey Crandall. “We launched our two delicious Candy Coated Balls in May last year in strawberry and liquorice varieties. Both have become favourites with a crisp candy shell covering rich chocolate, wrapped around a black or strawberry liquorice centre.” Crandall says: “RJ’s is now owned by Australian Private Equity firm Quadrant. It was with their backing and support that RJ’s saved other NZ brand icons when Nestle decided to close their FMCG BUSINESS - MARCH 2019

[ category insights ] NZ manufacturing. RJ’s now own Black Knight, Fabulicious, Heards, MacKintosh, and Oddfellows and starting to re-energise these classics.” Jaffa’s also joined the RJ’s brand portfolio with the first batch hitting the New Zealand market in October 2018. RJ’s sales Director Amy Law assures that Jaffa’s taste the same as the ones previously made by Mondelez. “We have done blind taste tests and nobody could tell the difference,” she says. We’re excited Kiwis can continue to enjoy their favourite treat”, she added. “It is exciting times for RJ’s, with manufacturing increasing more than 40% over the past 2 years, with around 20% of its confectionery destined for export markets.”

Premium trend from Wilson Consumer Wilson Consumer represent a number of confectionery brands including Guylian, Hershey’s, Jelly Belly and Lir, which produces the Baileys and Guinness chocolates from their facility in Ireland. “During our recent travels to suppliers, we have continued to see companies react to the consumers’ requirements for ‘better for you’

3630 Trade Aid FMCG 100g Ad_PRINT.pdf

22/02/19

3:15 PM

products and ingredients,” says Wilson Business Manager, David Cunningham. “This trend has been supported by brands like Guylian removing all palm oil from all their products, and reducing the saturated fat in their seahorse products; and Hershey’s committing over $500 million to the Cocoa for good programme. “We see New Zealand consumers continue this trend towards the premiumization of chocolate, as well as aligning their own beliefs with the values and ethics of their brand choices. As consumers move along the premiumization process, we have seen they return to brands they know and recognise, and use the safety of this recognition to experiment with new flavours or new packs,” says Cunningham.

Mentos drink you can chew “To drive early growth for the Mentos brand in 2019, Mentos has launched its newest innovation with the Mentos Soft Drink Mix Limited Edition Roll – the drink you can chew,” says DKSH Senior Client Manager NZ, Alana Perry. “Each roll contains three delicious flavours; Cola, Lemonade and Orange. Mentos understands that new flavours are a key driver for incremental sales.”

doing good tastes great

As a brand founded on ethical principles, care for the environment matters deeply

For design that will grab attention, steal hearts,

to Trade Aid. That’s why, when we undertook the rebrand and repackaging of their

win sales and be environmentally responsible,

chocolate range, sustainability was at the front of our minds. The end result was something unique, with packaging that incorporates a 100% compostable wrapper. It means Trade Aid’s packs care for the environment as much as they care for their growers. Which is something to savour as much as the delicious taste of real, organic chocolate.

contact Jenny McMillan at Brother Design. 021 193 2141 or 09 970 9892 jenny@brotherdesign.co.nz www.brotherdesign.co.nz

[ category insights ]

Parry says Mentos Rolls have experienced impressive growth of 14% which has been driven by the continuous rotation of limited edition rolls and strong performance of the core portfolio. (IRI MarketEdge unit sales QTR to 27/01/19) “The Chupa Chups brand continues with its strong performance with key lines in double digit growth – Chupa Chups Best Of 8u Bag 96g growing at 13.5% and Chupa Chups Best Of 25u Bag 300g growing at 56.1% (IRI MarketEdge unit sales MAT to 27/01/19)” Parry reveals that “more exciting innovations for both Mentos and Chupa Chups” will be appearing throughout 2019.

Strong loyalty to Werther’s “New Zealanders love Werther’s Original, a brand that has been around for more than 110 years internationally and continues to grow,” says DKSH Client Manager NZ, Kristen Mead.

FMCG half page xmas confec.pdf 1 15/02/2018 3:44:02 p.m.

“The Family Bags category is growing at 1.5% (Units % Growth vs YA MAT to 27/01/2019), with the Total Werther’s Original Brand exceeding this growth at 1.8%. “With nine SKUs in the Werther’s Original range, we have an offering for a variety of consumers. Our impulse offerings include the Werther’s Original 50g Roll and the Chewy Toffees, now available in a convenient 45g stick pack. In line with the better for you trend, Werther’s Original also offers a no sugar added range in a 42g flip-top box and a 60g bag,” says Mead. “Consumers have a strong loyalty to a brand which has been with them since childhood. As we come into winter, Werther’s Original will be running TVC to support the natural lift in sales that we see year-on-year during this season. A sweet after dinner treat, a 3.30pm pick up, a road trip or a movie night, the Werther’s Original range offers something for everyone,” she says.

For all your seasonal requirements contact: Wilson Consumer Products – 0800 651 044

Fini the new cool kid The cool kid in the confectionery aisle is Fini, according to DKSH Client Manager NZ, Kristen Mead. “Since launching in the New Zealand grocery market in September 2017, Fini is becoming the first choice for consumers, both young and young at heart. Fini has seen growth of 186% (units % growth vs YA, MAT 27/01/2019),* well and truly surpassing the Total Family Bags category growth of 1.5%. “Fini launched some exciting NPD in January 2019: Liquorice Blacks and Rainbow Chips. These two new SKUs have already seen some great results, with the liquorice offering a true liquorice taste with no artificial flavours or colours, along with being vegan friendly and gluten free. The Rainbow Chips are a fresh apple tasting treat, which has performed well in overseas markets,” says Mead. “Perfect for the confectionery aisle and the gluten free section, Fini offers a total of five SKUs which are gluten free and 100% yummy.

Mini Treats, Beans, Liquorice Blacks, Jelly Berries and My Octopi are all gluten free, packed in a convenient resealable DOY bag and are quality made products, manufactured in Spain. “Consumers see the same offerings time after time. Fini poses the perfect opportunity to refresh your section and inject some exciting innovation into the category. With ongoing brand support and a growing consumer following, Fini is on track to become an icon and growth driver in the confectionery aisle,” says Mead. *TKA IRI Scanned sales to 27/01/2019

Expert overview A superb overview of the chocolate category comes from Foodstuffs Category Manager, Seasonal Confectionery, Sharon Cavanagh, who has observed some very interesting advances. “New Zealanders love their breakfast – WeetBix, marmite or vegemite on toast, and with a glass of milk, hold a special place in Kiwi culture. No surprise then that at 2018’s New Zealand Chocolate Awards, the Supreme Winner was Hogarth’s Buttered Toast & Sea Salt, which seems to have captured the day’s most important meal in chocolate bar form.

NEW

DKSH New Zealand Limited 279 Railway Road, Milson, Palmerston North 4470 Private Bag 11047, Palmerston North 4442 Phone +64 6 356 5323, Fax +64 6 356 4726 customerservice.nz@dksh.com, www.dksh.co.nz

Market Expansion Services by www.dksh.com

Mentos Soft Drink Flavour Mix

ORANGE LEMONADE

Capture the need for

SMALL TREATS

COLA

NEW FLAVOURS are a key

DKSH New Zealand Limited 279 Railway Road, Milson, Palmerston North 4470

Market Expansion Services by www.dksh.com

Private Bag 11047, Palmerston North 4442 driver for incremental sales

Impactful floorstand to

Phone +64 6 356 5323, Fax +64 6 356 4726 customerservice.nz@dksh.com, www.dksh.co.nz

MAXIMISE YOUR SALES

Market Expansion Services by www.dksh.com

DKSH New Zealand Limited 279 Railway Road, Milson, Palmerston North 4470 Private Bag 11047, Palmerston North 4442 Phone +64 6 356 5323, Fax +64 6 356 4726 customerservice.nz@dksh.com, www.dksh.co.nz

NEW SOFT DRINK MIX IS AVAILABLE FOR A LIMITED TIME Contact your DKSH New Zealand Limited representative for more information.

[ category insights ] “A combination of sweet and savoury is not a new trend in the world of chocolate and confectionery but as consumers become more adventurous, the demand for new and innovative flavour pairings and ingredients will continue to increase,” Cavanagh said. “Easter 2019 is looking bright here with five home-grown chocolate companies pushing the boundaries. Awesome Value, Rainbow, Queen Anne, Kiwi Chocolate Co. and Whittaker’s are five New Zealand chocolate manufacturers with innovations this summer. “Kiwi Chocolate Co., based in the mighty Waikato, has created an exclusive range for New World, PAK’nSAVE and Four Square North Island locations. There are special giant Dinosaur and Unicorn chocolate eggs for the kids’ Easter egg hunt, and chocolate eggs with almonds, macadamia nuts or dark mint, for the adults,” she says. “Kiwis have an affinity for their marshmallow and chocolate pairing; we might have choc fish to thank for this obsession. Awesome Value, manufactured in Oamaru, has delivered a Kiwiana innovation for the record books – Scrambled Eggs, a chocolate egg with a marshmallow trifecta of flavour in the middle: boysenberry, pineapple and strawberry.

The flavoured marshmallows provide a fluffy bite bursting with fruity flavours.” Perhaps the best news she has about chocolate is that there is no need to feel guilty. “The health benefits of raw cacao nibs have become mainstream over the years, with their antioxidants and nutrientrich properties. Cacao nibs are a great pick-me-up straight from the bag, or deliver a sweet treat on top of yogurt, a smoothie or ice cream,” says Cavanagh. She adds: “New World, PAK’n SAVE and Four Square stores sell an everincreasing range of both Fair Trade and free-range products, including coffee, tea, bananas, and of course, chocolate. Ethical ingredient sourcing has become paramount for consumers; they want to know where their food comes from, the story behind the farm or farmers, and how it arrived on their supermarket shelves.”

5–6 October 2019

THE CHOCOLATE AND COFFEE SHOW

IS BACK IN 2019! Your chance to get face to face with more than 7,000 passionate foodies over 2 days at The Cloud on Auckland’s waterfront. Over 80 artisan chocolate, coffee and sweet treats exhibitors, Masterclasses, Barista Zone, Demo Kitchen and much more. Exhibitor stands and event partnerships now available, contact Shaughan 021 744 138 or Dale 021 361 136 www.chocolatecoffeeshow.co.nz

[ category insights ] Adding ‘looks good’ to tastes good and does good Creating positive change through equitable, sustainable trade is what Trade Aid is all about. One of their specialties is chocolate, made in New Zealand from organic ingredients sourced from their network of artisan producers. But gaining distribution and winning sales for Trade Aid chocolate is a competitive business. Trade Aid’s marketing head, Katie Sheehan, turned to Brother Design for a recent rebrand Source: NIELSEN SCANTRACK Total Supermarkets - MAT to 27/01/2019 Val Sales

Val % Chg YA

Total Confectionery

581,554,749

3.2%

Chocolate (excl. Seasonal)

349,826,356

5.0%

Moulded Chocolate

221,505,299

7.6%

Enrobed Bars

49,162,844

-5.0%

Chocolate Self Lines

42,738,539

9.3%

Chocolate Assortments

36,419,675

0.0%

Sugar Confectionery (excl. Seasonal)

156,769,535

1.8%

Family Bags

102,042,651

1.1%

Stick/Roll Packs

23,354,453

-0.0%

Card/Tub Packs

17,784,193

2.0%

Jumbo Bags

6,590,900

1.6%

Handy Bags

3,737,885

36.5%

Mini Bags

1,651,490

-0.4%

Bulk Bags

961,552

3.1%

Fun Packs

646,411

18.8%

Easter Confectionery

38,455,012

-3.3%

Chewing/Bubble Gum

26,805,866

-1.6%

Christmas Confectionery

9,697,980

3.0%

and packaging redesign. “The rebrand by Brother Design was one of our biggest projects ever,” she says. “Our story is complex, unique and completely authentic, so getting it right was by no means easy.” While distribution is a hurdle for every supplier it has a special meaning for Trade Aid. “Trade Aid is all about making fairly traded, premium organic products accessible to as many Kiwi shoppers and consumers as possible,” explains Sheehan. “Being a successful social enterprise means making a positive impact on global communities. It’s a trading model we’ve built and grown over 40 years in business.” Sheehan is pleased with how the redesigned chocolate has been received. It’s now ranged by Foodstuffs South Island, stocked in the South Island Distribution Centre, and is extensively available across the North Island. As an organisation founded on ethical principles, sustainability is a far-reaching commitment for Trade Aid. “Like our customers, we care about the origins of our ingredients and the people who grow them, but it doesn’t stop there,” says Sheehan. “Our passion reaches right through to the end product. So the new designs developed by Brother use a compostable film rather than ubiquitous plastic. The wrappers are biodegradable in a home compost environment, which is important to retailers and consumers.” The new design has won Best Packaging at the NZ Chocolate Awards 2018 and now features two new flavours: Dark Raspberry and Caramel Crunch - with further delicious options under development.

NZ CHOCOLATE WEEK

New Zealand’s national celebration of all things chocolate! NZ Chocolate Week is designed to highlight the phenomenal local talent we have who create with chocolate, make chocolate or just have a love affair with chocolate. New Zealand has a strong emerging chocolate industry with bean-to-bar producers and chocolatiers through to those creating amazing desserts, chocolate milks, hot drinks, beers, ice cream and much more! NZ Chocolate Week is back from 1 – 7 October 2019 to encourage Kiwis to support these businesses, from the big cities through to producers doing great things in the regions. We want to help them understand the differences in chocolate production and just how much of your hard work really goes into bringing that delicious endproduct to market. 24

FMCG BUSINESS - MARCH 2019

Chocolatiers, Chocolate Makers, Restaurants, Cafes, Schools, Bakeries and others can all get involved. List your event on www.nzchocolateweek.co.nz to sell tickets, receive promotion and share your news! www.nzchocolateweek.co.nz

LET’SCHILL! Convenient chilled products are top of the shopping list for easy, relaxed meals and desserts.

atua Dairy Company’s New Zealand made specialty creams have always tasted delicious, and they now have a brand-new modern look in the form of convenient pouch packaging – as seen on the cover of this issue. Tatua’s new pouches – set to hit supermarket shelves in April stand up steadily on supermarket shelves. Susanne Rolfe, Tatua GM Marketing and Sales, says that, in response to high demand, all Tatua specialty cream pouches are also resealable. “Because they’re made from thin film, our pouches let you squeeze out every last drop and fold the pouch flat for minimal waste—less than three percent, to be exact. The controlled opening slot and air-filled handle also means the pouch is easy to grip, hold and use— making cooking a breeze,” says Rolfe. The new-look packaging consists of 35% chalk, which acts as a filler - meaning the dairy company’s lightweight packaging now comprises less plastic - while still providing incredible strength and durability. Compared to conventional packaging concepts, Tatua’s premium

cream pouch range also offers lower environmental impacts in terms of energy consumption, waste generation and emissions to air and water. “The new packaging is recyclable, so, inside you’ll find the same amazing taste Kiwis know and love, but on the outside, our products are better in every way for the environment, supermarkets and consumers,” says Rolfe. (Cont. on pg 27)

[ profile ]

PITANGO LEADS THE WAY IN FRESH CHILLED CONVENIENCE P

itango was started in Auckland by Yasmin and Ofer Shenhav, who served their home-style fresh soups from the back of a van. Fast forward 18 years and now Pitango is a New Zealand favourite for wholesome convenient soups and meals. With a dedicated meals facility in Wiri, Pitango is ideally placed to cater for timepressed people increasingly looking for fresh and convenient foods. The ethos of wholesome eating runs through the company culture with fresh fruit available for staff in the tearoom, meaning there is always a healthy option. “The Chilled Meal & Soup category is one of the fastest growing in NZ grocery as people are increasingly looking for healthy convenient food that tastes homemade,” says General Manager New Zealand, Mary Boulton. “We’re no longer just Pitango, the brand, we now have a portfolio of strong brands, including Pitango, Artisano, and our slow cooked butchery brand Beak & Sons,” she says. “A recent acquisition is the Tasty Pot brand, which joined our portfolio in December. With the core proposition of on-the-go, single serve meals, the Tasty Pot range complements and strengthens our existing portfolio through additional usage occasions and consumers. There is a strong alignment of values between Tasty Pot and Pitango, as well as a synergy of vision and purpose,” says Boulton. “Tasty Pot founders, Andrew and Natalie Vivian, have joined our team to support our portfolio; Andrew as Commercial Manager, and Natalie as Brand Manager. “With Tasty Pot, we’ll continue to work closely with High Performance and Grass Roots Sport in New Zealand to make it easier for Kiwis to eat good healthy food. Ambassadors Kane Williamson (cricket), Damian McKenzie (rugby), Tom Abercrombie (basketball) and Anita McLaren (hockey) front our ‘Player of the Day’ initiative, which has been rolled out to most junior cricket and rugby clubs nationwide. This year we’ll be extending this programme to hockey and 26

FMCG BUSINESS - MARCH 2019

Natalie Vivian (Brand Manager), Mike Harrison (National Sales Manager), Cheryl Miller (Finance Manager), Chris Allen (Operations Manager), Mary Boulton (General Manager)

basketball clubs across the country, investing into local community sport and helping educate our youth about the importance of healthy eating. “Busy lives continue to be a rising trend across New Zealand. With the explosion of social media and mobile technology, we’re finding that people have less time to cook, but are better educated on the importance of eating regular nourishing meals. Consumers are always on the lookout for an easy convenient meal that is healthy for their families. They are consistently on

THE TASTY POT RANGE COMPLEMENTS AND STRENGTHENS OUR EXISTING PORTFOLIO.” GENERAL MANAGER NEW ZEALAND, MARY BOULTON.

the search for real food made from fresh ingredients, using minimal processing to bring out the natural flavours; definitely no added preservatives or artificial flavours.” “However much people are creating or posting online about amazing meals they have eaten, there is often little time to replicate these dishes at home. Time-poor Kiwis are increasingly looking for healthier and convenient options for meals to help create gourmet style meals with as little fuss as possible, so it’s no surprise that easy to make, fresh ready-to-go meals that never compromise on taste and quality are flying off the shelves. Our slow cooked Beak & Sons meat range was created with busy consumers in mind. These products let you add mouthwatering and meltingly tender meats to meals without the hassle or time it takes to prepare. BBQ Pork ribs or Bourbon Beef Brisket are perfect for sharing and feeding a crowd,” she says. “My young, vibrant, passionate team are very in-tune and representative of our consumer base. While we may be a little bigger today, our obsession for real food that tastes great and is good for you hasn’t left us.”

[ feature ] Tatua are the champions of creamy convenience in a can, and their aerosol range is also having a makeover—Dairy Whip (a Kiwi family favourite) features a modern new can design, while the Chocolate Mousse (a decadent dessert with no preparation required) has also revamped its look to fit in with the rest of the Tatua product family. “Our packaging artwork has been refreshed with delicious new photography, which we hope will inspire Kiwis to get creative in the kitchen,” Rolfe explains. “Using Tatua Mascarpone instead of cream, for example, is an easy way to enhance the flavour and add X-factor to their favourite recipes.” Tatua Culinary and Whipping Cream, Mascarpone, Cheese Sauce and Sour Cream are available in 1kg pouches through Foodservice outlets and distributors. Cooking Cream, Crème Fraiche, Mascarpone and Sour Cream will now be available in 500g pouches to ensure there’s enough Tatua deliciousness to last the week!

The Baker’s Son Tom and Ben Grooten were born surrounded by pastry and pies, they grew up helping their Dad in his bakery and have worked alongside him ever since. Over the years the brothers have perfected their award-winning family recipe and from there The Baker’s Son was born. The Baker’s Son focus is on what Kiwis love: quality, with plenty of meat and lots of flavour! Using only the best ingredients, their family recipes contain no preservatives, MSG, artificial flavours or colours, and are full of New Zealand Angus beef and free-range chicken, all wrapped in a golden pastry. The range was launched at the end of 2018 and they are striving for the top.

The Baker’s Son pie range offers three Kiwi favourites: Angus Mince & Cheese; Angus Steak & Cheese; and Free-Range Butter Chicken. A refreshing alternative for consumers looking for a quick, easy and delicious meal. The brothers designed their packaging to offer an eye catching and engaging product. The box design allows two different display options, portrait and landscape, to suit different stores shelves, as well as visually standing out. The Bakers Son Range is sold as two-packs, offering an upsell opportunity to increase the basket spend. This versatile and attractive packaging also allows your store to maintain a tidy and professional fridge display. Following the launch of the first range, The Bakers Son momentum is not slowing down. Their focus is on innovation to grow this section and provide excitement for consumers with exciting new flavours to come. For more information, contact Tom & Ben: Info@thebakersson.co.nz www.thebakersson.co.nz Ph 09 421 9027

[ Buy NZ Made ]

PACKAGING NZ MADE PRODUCTS SUSTAINABLY

P Ryan Jennings Executive Director Buy New Zealand Made www.buynz.org.nz

IF YOU’RE REPACKAGING FROM PLASTIC TO CARDBOARD, DON’T COMPROMISE YOUR BRAND VALUES IN THE TRANSITION.”

FMCG BUSINESS - MARCH 2019

ackaging is a powerful opportunity for a brand to tell consumers what their product represents. Not just with words and imagery, but in a way that reminds them of something… a feeling… an experience… a product they already trust… or a feeling they enjoy experiencing. This is the domain of brand marketers and media agencies adept at story-telling that goes beyond price, name and nutritional information. Packaging also has its practical considerations. With the focus on plastic reduction, many consumers are shunning plastic bags and packaging. A Colmar Brunton report released February 2019 says 72% of Kiwis view build-up of plastic in the environment as the number one issue (above the cost of living and availability of affordable housing) and 4 in 10 are highly committed to living a sustainable lifestyle. The change happened fast in New Zealand and its unlikely this is the last packaging change we’ve seen. In the aftermath of the ‘Great Plastic Awakening’ of 2018, I wanted to hear what effect it was having on FMCG manufacturers. New Zealand Made business PakWorld is a trusted source that New Zealand manufacturers turn to for their packaging needs. Jonathan Flett from PakWorld confirmed that enquiries are up to eliminate plastics from product packaging. He says: “There might be a punnet of tomatoes or cherries and they’d traditionally be in plastics. We can do a cardboard base with biodegradable window and that will wrap it with 90% less

plastic. We’ve been leading on this for some time. We’re making sure that the cardboard we’re using is FSC Certified because that is the most rigorous for responsible forest management.” So it’s not only the New Zealand Made tag that consumers look for when making a purchase. They’re looking at the packaging wrap deciding ‘is this product’s origin and its packaging in line with my values?’. This is a savvy PR risk mitigation strategy. “Provenance of packaging is increasingly becoming a decision for both consumers and retailer and buyers. They want to know where packaging has come from so they don’t get the backlash. They want to know it’s a NZ Made product. They want to know the packaging is sustainable,” says Flett. Brands that are transitioning their packaging know that it creates complexities in brand consistency as the consumer friendly and familiar graphic design doesn’t always fit on a non-plastic alternative. It might be easy at this point to make it fit, crop a side, remove some words and just get the main messages on the product. This is a mistake. Great brands spend an inordinate amount of time on details. These matter. Consumers know when something looks like it doesn’t belong on the shelf. Supermarket buyers will spot it far earlier and consumers might never get the opportunity to see what you’ve made. “If you’re repackaging from plastic to cardboard, don’t compromise your brand values in the transition. 80-90 percent of the time I can look at a design and tell whether it will make the Grade,” says Flett. “One of our packaging customers, Okains Bay Fisheries, was presented to a buyer who sees 60 suppliers every week. The story on the packaging included a way for buyers to tell the location of where the fish was caught. He had done his homework and invested the money and he won the shelf space,” says Flett. Almost every FMCG business is affected by the consumers’ awakening to unsustainable practices. The opportunity is here for manufacturers to tell a better story on a better package with a product made in New Zealand.

[ FGC ]

ARE WE FACING A GLOBAL SYNDEMIC?

was hoping 2019 would be a year of constructive reports on issues around obesity and wellness so we could make further headway on them. But it was only mid-January when British medical journal The Lancet published a report calling for people to eat a mouthful of meat a day, a lot less dairy, more beans, and a lot more plants to improve diets and shift the dial on climate change. Their advice was immediately questioned by disease and epidemiology experts in the US, who said the link between such an extreme diet and health had not been validated and was “not as strong as it seems to be”. The authors also overlooked that most people are unlikely to follow a daily diet of a piece of meat the size of a chicken nugget and one serving of dairy. One nutritionist said that much meat wouldn’t provide enough protein for one meal, and we’d need to consider beans, lentils, and chickpeas. Now, I enjoy them from time to time, but every meal would be boring. Two weeks later, The Lancet Commission on Obesity (which includes Auckland University), called for a tax on red meat and action to curb “food industry excess” to tackle obesity, undernutrition and climate change – combined under the ominous heading “The Global Syndemic”. A tax on meat and confining ourselves to a mouthful a day would be as sensible as fielding an All Black team brought up on chickpeas and sprouts. For a start, meat (like all foods) is already taxed 15% in New Zealand. To put it in context, in recent years the same public health activists have called for taxes on sodas, juice, flavoured milk, sugar, artificial sweeteners, fat, salt, processed meat, eggs, cereals, cheese, butter, and increases on wine,

beer, and bread. Imagine the effect on our poorest families if those were all implemented. The call for industry science and nutrition experts to be excluded from policy-making is Orwellian. The report claimed “a fundamental and irreconcilable conflict” exists between industry and public health, and partnerships between industry and governments “are a risk to public health”. Total nonsense, and the response was predictable. The London Institute of Economic Affairs said abolishing partnerships between industry and government would mean “bureaucrats and activists, neither of whom have any food manufacturing experience, [would] create mandatory, low-calorie recipes for the masses”. Food Drink Europe said it was at odds with the United Nations’ approach of supporting “meaningful engagement” with industry. There is no conspiracy by industry experts to overwhelm policy people. New Zealand has a transparent approach to the development of policy. Every submission FGC makes is publicly available on our website, and it’s all science-based. When it comes to setting policy, particularly given the regulatory framework we have with Food Standards Australia New Zealand, not only is industry input required, but if government wants to implement policy, it can’t do so without industry advice on solutions. An example is salt reduction in bread. When the Ministry of Health decided to move on this in 2007, it didn’t have expertise in commercialscale bread-making, so it commissioned the Heart Foundation to work with industry, which it knew had to be core to the project. The result was a reduction of salt in some breads of 18%, removing 150 tonnes in just one year. Work on other categories (eg breakfast cereals, processed meats) has removed more than 300 tonnes of salt. There was no way that would’ve been achieved if industry experts weren’t involved. Working together is the only way we’ll meet healthier food targets, but I’ll leave the last word to the American Council on Science and Health, which said excluding industry was “insane” and “banishing experts from the table solves nothing. In fact, it makes the problem worse.”

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

WORKING TOGETHER IS THE ONLY WAY WE’LL MEET HEALTHIER FOOD TARGETS.”

FMCG BUSINESS - MARCH 2019

[ legal advice ]

CHANGES TO 90-DAY TRIAL PERIOD

T Vance Leach is a solicitor at Steindle Williams who specialises in litigation and dispute www.swlegal.co.nz

REGULAR REVIEWS OF EMPLOYMENT AGREEMENTS SHOULD BE UNDERTAKEN.”

he Employment Relations Amendment Act 2018 (“Amendment Act”) was passed into law on 5 December 2018. The Amendment Act makes many changes to the existing Employment Relations Act 2000 (“Act”) regarding employees’ rights in the workplace and collective bargaining rights. Of particular importance to employers, on 6 May 2019 the Amendment Act makes changes to the 90-day trial period. Introduced by the previous government, the 90-day trial period allows an employer to dismiss an employee during the trial period. If dismissed the employee cannot raise a personal grievance claim for unfair dismissal. However, an employee is still able to raise a personal grievance against their employer on other grounds such as discrimination, sexual or racial harassment by the employer. When dismissing an employee under a trial period, the employer does not have to provide reasons for the dismissal nor are they required to follow their standard dismissal procedures. When this provision was introduced in 2008, only employers with less than 20 employees could use the 90-day trial period provisions for new employees. However, this was expanded in 2010 to cover all employers, regardless of the number of employees.

Employment Relations Amendment Act 2018 Changes When the second stage of the Amendment Act comes into force, it will amend the Act to only allow employers, with 19 or less employees, use of the 90-day trial period provision. In essence, it reverts the legislation back to when it was first introduced in 2008.

What effect does this have for employers? From 6 May 2019, any employer who employs 20 people or more will need to review their current employment agreements to ensure that the 90-day trial period is not included when hiring a new employee. If a trial period provision is still in an 30

FMCG BUSINESS - MARCH 2019

employment agreement for a new employee after that date the trial period clause will not be valid and is unenforceable. However, if an employee has a trial period clause in their employment agreement and they were hired before 6 May 2018, the employer will be able to dismiss them validly under the trial period, despite the new legislation taking effect. While employers with 19 employees or less can still retain and use the 90-day trial period in their employment agreements, careful consideration should be given when hiring new employees to ensure that they do not exceed the 19-employee limit if they intend to rely on the trial period provisions. The Act still allows employers of any size to use probationary periods for new employees. While an employer, at the end of a probationary period, can dismiss an employee, a fair and reasonable process must be undertaken when doing so, otherwise the employer will risk a personal grievance being raised against them. Regardless of the size of the employer, regular reviews of employment agreements should be undertaken to ensure that the agreement conforms to the current legislation. If there is any uncertainty, then legal advice should be sought.

[ recruitment ]

IMPLICIT BIAS

ecruiters are match makers: we match an employer’s and employee’s needs and desires. This takes skill as you effectively have two customers and managing both needs can be tricky. Our roles come down to judgement. We are judging both employers and candidates, and this tension can be challenging; it’s beholden on recruitment professionals to make sure we are being objective and we don’t fall into a bias trap. Recruiting for culture fit is an area in which implicit bias can creep. Companies are looking for candidates who work well within their environment, but here’s where selecting for culture fit can get sticky. It can sometimes be used as a euphemism for selecting a candidate “just like me”, which is a known and therefore safe option. This is often unconscious; but when candidates with a different race or sex or age are getting deselected, then it’s right to ask if implicit bias is creeping in. It’s now widely accepted that recruiting for diversity is good for companies and their bottom

lines. But if the recruitment process is still selecting “someone like me”, what can we do? It’s important for recruiters to be consciously aware and actively working against this bias to provide diverse shortlists. We are in the position of influencing our clients to think differently. This approach works well sometimes but we are not the final decision makers - employers are. New Zealand is still a country of small to medium businesses and often selection is down to individual managers. This is where you can question your own implicit bias. Employing people who look and feel just like us often impresses like the right culture fit. But the point of diversity is to bring a different outlook, someone who will challenge your beliefs and who might provide robust debate. Surely business decisions that are questioned from a variety of different points of views are the better for it? Diversity is more challenging, but in the end it could be better for your business.

Leaders. Innovators. Disruptors. Movers. Shakers.

We put the spotlight on sought after FMCG talent.

Claire Ellis Partner at Convergence Partners Executive Recruitment and Interim Talent www.convergencepartners.co.nz

Lara Devereux Sales & Marketing 09 300 6877

Erin Kirk Sales & Marketing 09 300 6791

Bobbi Ryan Supply Chain & Operations 09 300 6874

Claire Ellis Finance & Accounting 09 300 6792

Chris Palmer Interim Talent 09 300 6872

Alistair Comyn IT & Projects 09 300 6793

Let us connect your business to the exceptional game changing talent transforming the FMCG world. Talk to our FMCG recruitment specialists. www.convergencepartners.co.nz FMCG BUSINESS - MARCH 2019

[ export ]

DIY SUCCESS FOR RUTHERFORD & MEYER

B 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

WE ASKED WHAT THE CONSUMER AND THE RETAILER WANTED.”

ack in 2001, when Jan Meyer and her husband Russell Coventry bought Wellington-based food business Rutherford & Meyer from her mother and business partner, it was a very small cottage industry. Making fruit pastes to complement cheese, it was really only being sold in the gift market category, so Jan asked the question “How can we expand our market?” “We started looking outside of New Zealand. Firstly, to Australia where we dabbled in a similar market, and then realised that the bulk of our sales would have to come through the supermarkets,” says Jan. After being put in touch with a contact at Australia’s National Foods, who wanted to private label their products, things started to step up a level. “At this point everything was made by hand, we were tiny, but he didn’t know that!” laughs Jan. “From there we looked for other export markets and found the USA was a natural fit for us. However, it is a really complicated market and I had to make many trips over there, talking to people, understanding the market. I was really lucky to find a retailer through NZTE who understood our product and someone who taught me the market quickly.” Since breaking into the US market in 2003, Jan says Rutherford & Meyer have gone through several business models in that country. “It’s gone from going into partnership with a company and co-branding our product, using a third party warehouse and importers, and now we’ve gone back to having our own warehouse and our own company in the US. We have two team members – one on each coast – and our biggest market is the supermarkets.” The ‘do it yourself’ approach is a common theme when you look at Rutherford & Meyer’s road to success. As well as having their own company and

(L to R) Greg Smith East Coast Manager, Jan Meyer CEO, Lisa Conway West Coast Manager, all of Rutherford & Meyer.

warehousing in the US, in 2007 they also took over the manufacturing of their products here in New Zealand, buying the plant that had previously been supplying them. Since then, as their volume and range has grown, they have worked on mechanisation of their systems and innovation. They are the only fruit paste that is rectangular rather than round. “We asked what the consumer and the retailer wanted,” says Jan. “No one likes rounds because they are hard to cut, whereas a rectangle is easy to cut and you can use part of a container and what’s left still looks presentable to use another time.” Additionally, rounds take up more space on the shelf than rectangles. Now they still really focus on the three markets of NZ, Australia and the US. “There’s still so much more to explore in the huge market that is the USA,” says Jan.

JAN’S TOP TIPS You’ve got to really understand and know your market – the US works so differently to everywhere else, and a lot of Kiwis don’t appreciate that. When we started there, I’d just pick up the phone and call people. Networking, forming and maintaining really good relationships with people in the US is key. Don’t go into the market underfunded because it will take you a lot of money to get the market up and running. For example, when we got into Kroger nationally (the largest grocery-store chain in the US), I estimate that it cost us $100,000 just to get to the starting blocks. Constantly look at new ways to re-invent yourself and make sure your team are on board with that. I say to our team, “just because it worked that way last time, doesn’t mean it will next time.” 32

FMCG BUSINESS - MARCH 2019

THE FOOD SHOW RETURNS TO WELLINGTON

t’s that time of year again, when our taste buds come alive for one of the best foodie experiences New Zealand has to offer, at the 2019 Food Show Wellington, from 24th-26th May. Be prepared to be spoilt for choice, with over 180 exhibitors bringing you the best variety of local and international foods, wines, craft beers and tasty delights. Don’t miss out on an opportunity to meet experts in health and drinks (life’s all about balance, right?). Visit cooks at the Ceres Organics Healthy Hub Kitchen who’ll introduce you to a fabulous array of healthy ingredients and recipes to help you flourish with nutritious goodness. Fancy becoming a connoisseur in Sauvignon Blanc? The Brandhouse Drinks Masterclass will explain what makes Malborough’s Sauv so unique, as well as helping you discover why craft beer is conquering the world. Hungry? Thirsty? You’ve come to the right place! Head along to Brewer’s Lane, Countdown’s Fresh Market, Huntley & Palmers Cheese Alley, Artisan Village, The Healthy Hub and New New New Street Food Alley, for a wide selection of ingredients and fantastic delicacies, as well as hot street eats to keep you energised as you explore. If you want to learn from the best in the business, you can enjoy live cooking demonstrations - including Celebrity Chef Annabel Langbein, Masterchef judge Simon Gault and Maori culinary specialist Monique Fiso.

FAST FACTS The Food Show Wellington, 24 – 26 May, Westpac Stadium, Wellington Tickets to The Food Show Wellington available from www.foodshow.co.nz. General Entry gate price $20, Child (6 – 12) $15, under 5s are free, seniors $18 (Friday only). Visit the website for further information and to purchase tickets: www.foodshow.co.nz

Sweet treats at the Chocolate & Coffee Show

WHAT’S ON MARCH

JULY

9 OUTSTANDING NZ FOOD PRODUCER AWARDS Judging Auckland, NZ https:// outstandingfoodproducer.nz

25-28 THE FOOD SHOW ASB Showgrounds, Auckland, NZ https://www.foodshow.co.nz

APRIL 5-7 THE FOOD SHOW Christchurch, NZ https://www.foodshow.co.nz

MAY 21 NZ CHEESE AWARDS Trophy winners Hamilton, NZ https://nzsca.org.nz/cheeseawards/ 24-26 THE FOOD SHOW Wellington, NZ https://www.foodshow.co.nz

JUNE 12-15 FIELDAYS Hamilton, NZ https://fieldays.co.nz/

AUGUST 14-15 C&I EXPO ICC Sydney, Australia www.candiexpo.com.au

SEPTEMBER 14 GROCERY CHARITY BALL Auckland, NZ https://s2nevents.eventsair. com/2019-grocery-charity-ball/ book/Site/Register 18-19 CONVENIENCE & IMPULSE NZ EXPO 2019 Auckland, NZ www.candiexpo.co.nz

OCTOBER 5-6 CHOCOLATE & COFFEE SHOW The Cloud, Auckland, NZ www.chocolatecoffeeshow.co.nz 1-7 CHOCOLATE WEEK New Zealand nationwide www.nzchocolateweek.co.nz 18 WORLD CHEESE AWARDS Bergamo, Italy

15 See Annabel Langbein at The Food Show.

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 - MARCH 2019

EVERYONE DESERVES TO

GET WHAT THEY PAY FOR Be WISE when you ADVERTISE FMCG Business is independently audited and verified by ABC, because we want our advertisers to know they’re getting the exposure they’ve been promised.

To advertise call Joel Bremner on 021 370 065

Out & About Ella Jones (Maggie Marilyn) and Kate Milliken (Remix) at the Moet Ice Summer Session at 46&York in Auckland.

Steinlager announced its return as Officia l Sponsor and Beer Partner of Emirates Team New Zealan d for the 36th America’s Cup - (L) Rory Glass, Lion NZ MD and (R) Grant Dalton, Team New Zealand’s CEO.

) Open in Clevedon - (L-R Land Rover NZ Polo my Wilson. Tom The Peroni team at the and , son Wil ig es Worker, Cra Lachie Gilmore, Jam

CEO of Newman’s Own Foundation, Robert Forrester (R) visited Auckland to present donations to NZ charities such as the Kids Can team, with help from NZ Blogger Maria Foy (L).

Beck Wadworth and Meegan Ackerman enjoyed the Veuve Clicquot Marquee at the NZ Polo Open.

SNAP & 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 an Alexandra’s hamper worth $100 with a selection of delicious products, including Dukkahs, ready-to-cook meals and a variety of spice blends. Check out their whole range at www.alexandras.co.nz

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

FMCG BUSINESS - MARCH 2019

www.theshout.co.nz March 2019

DEFIANCE PROVES SUCCESSFUL FOR DOMAIN ROAD PLUS BUCKETLIST WINES n TOP NZ CRAFT BEERS n IRISH ALES NEW ZEALANDâ&#x20AC;&#x2122;S LARGEST LIQUOR AUDIENCE

SUSTAINABLE IN GLASS

NOW AVAILABLE IN 888ML RESEALABLE GLASS BOTTLES CONTACT: SALES@SPRIGANDFERN.CO.NZ OR 03 544 8675 FOR THE FULL RANGE - WWW.SPRIGANDFERN.CO.NZ

CONTENTS March 2019 3

Industry news and insights

4 Sarah Jessica Parker teams up with Invivo

www.theshout.co.nz March 2019

6 World-class celebration of Sauvignon Blanc 7 Cover story Defiance proves successful for Domain Road 8

Pink is the new pink Tasting Notes from Cameron Douglas MS

DEFIANCE PROVES SUCCESSFUL FOR DOMAIN ROAD PLUS BUCKETLIST WINES n TOP NZ CRAFT BEERS n IRISH ALES NEW ZEALAND’S LARGEST LIQUOR AUDIENCE

Bucketlist Wines of Central Otago

Brewing in New Zealand An economic report

14 Inside the world of Irish Ales John Oszajka has us all wanting to claim a bit of the orange and the green. 17

NZ’s Hottest Craft Beers

On the cover: Award-winning Domain Road Vineyard wines are produced from two vineyards in Bannockburn Central Otago read the full story on pg 7.

Editor’s picks The Ace of Spades The crystal ball of beer says there are clear signs of Irish Ales on the horizon… and as we are celebrating St Patrick’s Day this month, this prediction suits me just fine. If you – like me - are looking for something a bit different for St Paddy’s this year, try “The Ace of Spades” from Good George Brewing. This is an Irish Dry Stout from New Zealand that is rich in notes of coffee, caramel, and vanilla with a very smooth finish. Sláinte! Panhead’s Supercharger American Pale Ale My other half’s favourite Kiwi beer of the moment is Panhead’s Supercharger American Pale Ale - and what’s good for the gander is good for the goose. If you’re into cool blondes and enjoy a quality APA with plenty of character, then this is the beer I’d highly recommend. You can find out more about this delicious thirst-quencher on pg 17. Pink is the new Pink Esk Valley HAWKE’S BAY ROSÉ 2018 is seriously good value for money! It offers a luscious ripe red berry and tree fruits bouquet with cherry and plum notes and hints of strawberry and roses, all for just under $20… what more could a girl want?

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.

MANAGING DIRECTOR-PUBLISHER Dale Spencer dspencer@intermedianz.co.nz

PUBLISHED BY The Intermedia Group Ltd 505 Rosebank Road, Avondale Auckland, 1026, New Zealand ph: 021 361 136

EDITOR Tamara Rubanowski trubanowski@intermedianz.co.nz ph: 027 2784761 SALES DIRECTOR Jaqueline Freeman 021 286 7600 jfreeman@intermedianz.co.nz

FMCG BUSINESS: THE SHOUT - MARCH 2019

[ news ]

SJP TEAMS UP WITH INVIVO THEY’VE DONE it again! Kiwi wine company Invivo made headlines around the world as the team announced a wine collaboration with New York icon Sarah Jessica Parker. Invivo, arguably New Zealand’s most innovative wine company, is embarking on a partnership with the actress and entrepreneur following months of discussions, time in New York and a wine tasting at SJP’s shoe boutique. Loved worldwide for her acting, perfumes and her wildly successful shoes, Sarah Jessica Parker is gearing up to don her gumboots and stomp on grapes during a very collaborative process, which will see a Sauvignon Blanc and Rose launch in NZ Winter 2019. Sarah Jessica Parker explains “I am a true wine lover and I love including wine in family dinners and occasions with friends, so this is a very exciting and fun project for me. I’m so looking forward to every single stage of the creation. I intend to be very hands-on throughout the process, as I am with all my endeavors, and could not be partnering with a better brand than Invivo.” This new collaboration with SJP is not a celebrity endorsement; the actress will be involved in every aspect of the new wine, from the naming and label design to the winemaking itself and choosing the final blend. SJP is also a shareholder in the company, making this a long-term venture for both parties. Collaborations are already a familiar territory for Invivo – they’re also the guys behind UK talk show host Graham Norton’s extremely successful wine and recently released gin labels. “We want this wine to be 100% Sarah Jessica Parker. So other than selecting the base wines for a Sauvignon Blanc and Rosé,

I’ll be taking a back seat and letting her create the blends,” explains Invivo winemaker Rob Cameron. “It comes down to SJP’s palate and preferences. We want to create wines that she truly loves and wants to drink and share with friends.” The blending, tasting and adjusting will be the exact same process that any other winemaker would follow, but with the guidance of SJP and overseen by Invivo. Flying the flag for New Zealand wine around the world, Invivo has received over 200 medals in international wine competitions including World’s Best Sauvignon Blanc, 90 point ratings from both Wine Advocate and Wine Spectator AND awarded Champion Pinot Noir at the 2018 New York Wine and Spirit Show.

I’M SO LOOKING FORWARD TO TRAVELLING TO NEW ZEALAND TO SEE WHERE THE GRAPES GROW AND THE WINE IS MADE.” SARAH JESSICA PARKER

Invivo winemaker Rob Cameron and Co-founder Tim Lightbourne with Sarah Jessica Parker.

Sarah Jessica Parker comments “Invivo also sent me some of their other wine – which I LOVED – as well they told me a little bit more about their story. I’m so looking forward to travelling to New Zealand to see where the grapes grow and the wine is made. The boys even brought me a pair of “gumboots” which they assure me are the height of Kiwi vineyard fashion. Regardless, happy to have and perhaps even wear them.” Invivo’s Co-founder Tim Lightbourne says, “The partnership with Sarah Jessica feels like a perfect fit. We didn’t want a silent partner or just a familiar face – we wanted someone who will throw themselves into the process and make wine that’s all about them and reflects their (good) taste. We can already see this happening and can’t wait to taste the end product. New Zealand is already on the map for our wine, but this new collaboration will make it the height of fashion.”

GET SOCIAL WITH INVIVO WINES x SJP Instagram: @InvivoWines Facebook: www.facebook.com/invivoandco Twitter: @InvivoWines Vimeo Link for Launch Video: https://vimeo.com/318675104/a23bd875bc Instagram Link to Launch Video (shortened): https://vimeo.com/318677297/7bd5faa14a

FMCG BUSINESS: THE SHOUT - MARCH 2019

NEW LOOK

our family wine crafted with passion NEW ZEALAND WINE

At Toi Toi, we believe in sharing quality wines with family and friends – and protecting our lands for future generations.

Supporting Forest & Bird to help preserve New Zealand nature for future generations. Available at your local fine wine and liquor store or online at www.toitoiwines.co.nz







@toitoiwines

[ industry insights ]

WORLD-CLASS CELEBRATION OF SAUVIGNON BLANC

Angela Willis New Zealand Winegrowers Global Events Manager

THE ‘WHO’S who’ of the wine world descended on Marlborough for the three-day International Sauvignon Blanc Celebration that took place recently. Over 100 international wine producers, experts and key influencers visited our largest wine region, and experienced our diverse Sauvignon Blanc offerings. The event took place from the 28-30 January and featured a world-class line-up of speakers who are experts in the fields of science, research, journalism and gastronomy; including internationally acclaimed wine writers Matt Kramer and Justin Howard-Sneyd MW. In total over 350 guests joined the celebration, which explored the complexity of Sauvignon Blanc, emerging styles, vineyard practices, winemaking influences and future trends. The International Sauvignon Blanc Celebration was built around three themes. Day one was themed around the concept of place, and drew on Tūrangawaewae, the geographical places we feel empowered and connected to. Day two, with the theme of Purity, explored topics such as climate, sustainability and flavour. To wrap up, Day three explored future challenges and opportunities for the New Zealand wine industry. The spectacular evening entertainment also proved to be a major highlight, with the sold-out gala event ‘Blanc’, a dinner-en-blanc theme, hosting 480 guests at Brancott Vineyard on the second evening of the 2019 celebration. Celebrity Chef Martin Bosley was the culinary director of the gourmet feast that matched with older vintages from the cellars of our wineries.

FMCG BUSINESS: THE SHOUT - MARCH 2019

OVER 100 INTERNATIONAL WINE PRODUCERS, EXPERTS AND KEY INFLUENCERS VISITED OUR LARGEST WINE REGION.” As the three-day celebration came to an end, more than 60 international wine experts experienced a journey like no other on the “New Zealand Wine Flight”. For the third successive year, Air New Zealand and New Zealand Winegrowers joined forces to take guests on a remarkable experience, as two Air New Zealand ATR’s flew guests from Blenheim over Nelson, Wellington Wine Country, and then over Hawke’s Bay before landing in Gisborne. Throughout the journey premium New Zealand wines were served while flying over stunning views of the regions where they were produced. There was no better way to finish the flight than to arrive in Gisborne and carry on to the Sparkling and Chardonnay Symposium, where guests explored and enjoyed some of our other varieties. It was truly a fantastic week spent celebrating New Zealand wine!

[ cover story ]

DEFIANCE PROVES SUCCESSFUL FOR DOMAIN ROAD

AWARD-WINNING DOMAIN Road Vineyard wines are produced from two vineyards in Bannockburn Central Otago - owned and run by Graeme and Gillian Crosbie who lived in the area since the 1980’s and finally entered the wine industry in 2002 after a long love affair with wine. The home vineyard on Domain Road was previously an apricot orchard. As it was only a few hundred metres from his house, Graeme recognised its potential quickly. It was situated in a small valley giving it a warm and more sheltered microclimate in what is already a hot area of Central Otago. Early vintages showed great potential with the 2007 Pinot Noir gaining multiple gold medals, something that has continued with subsequent vintages. The focus has always been on the vineyard with an emphasis on wines being grown rather than made. With this in mind, the global financial crisis a decade ago was seen as a great opportunity to expand on the 6.5 hectares of vines on Domain Road. The search was kept to the Bannockburn area and a site on Felton Road was identified as being the best available. Given the name ‘Defiance’, the vineyard was planted in 2012. During 2013 Fiona Johnman came on board as the Domain Road vineyard manager and continues to lead a small team in the vineyard. No two seasons are

the same so a need to focus on what the season brings, and manage accordingly, with attention to detail and a lot of plain old hard work being the key. The new vineyard presented an opportunity to plant Chardonnay grapes, so after mapping the vineyard soils, land was allocated to each variety with Pinot Noir and Chardonnay getting the best available. Graeme didn’t want to follow what

everyone else was doing with Chardonnay in Central Otago so some different clones were selected with a small area of land left to plant out later to provide balance if needed. Pinot Noir also received the addition of three more clones to provide more depth and choice for the wines. Having the two vineyards gave Domain Road the perfect opportunity to showcase different Pinot Noir wines and the Defiance single vineyard Pinot Noir was added to the Paradise Single Vineyard (from Domain Road) and the Bannockburn Pinot Noir (a blend of both vineyards) in 2016. Winemaking is a hands off approach, with Peter Bartle the winemaker preferring to let the wines make themselves as much as he can. Peter says the long slow ripening that Domain Road achieves on both vineyards allows for perfect timing of the harvest decisions and the quality of the grapes that Fiona and her team deliver helps with letting the wines develop in their own time. This is coupled with extra time ageing the Chardonnay and Pinot Noir wines before release, a deliberate move to allow the wines to achieve better balance. In 2016 Domain Road opened a cellar door on the Defiance vineyard, 263 Felton Road. Open 7 days it has been a great success with visitors enjoying a range of wines on taste every day. FMCG BUSINESS: THE SHOUT - MARCH 2019

[ tasting notes ]

Pink is the new pink!

Cameron Douglas is New Zealand’s first and only Master Sommelier. He is a Senior Lecturer at AUT University in Auckland, local and international wine judge, wine commentator and wine educator as well as speaker and presenter in New Zealand and internationally. Cameron is also an examiner with the Court of Master Sommeliers Worldwide. He writes the wine lists for a variety of establishments including Mekong Baby, Nanam Republic and Michelin Starred New York establishment The Musket Room.

Rosé is best drunk upon release and for around a year. While many rosé wines can last two years and sometimes more they show best when young. My advice is to sell through all 2017 and 2018 vintage stock by July in readiness for the 2019 releases. Summer is now transitioning into Autumn rather quickly, but gosh haven’t we had a great season with some fantastic weather! More opportunities to dine later in the day and outside as well. What have people been drinking the most? Rosé. Why? Because it’s simple, easy to drink, goes with practically any cuisine style and most of all - a reliable and affordable choice – for most. While the price of rosé has increased slightly, the choices and quality have increased as well. There are more local producers of rosé than ever before and with imports of rosé steady there is still plenty of choice available. Statistics show a steady increase in production with over 20 million hectolitres of Rosé produced annually around the globe. Rosé is not a complicated wine to make or drink. Apart from being a lightly coloured wine it should also be crisp in texture and have an obvious fruity quality. All colours of rosé are acceptable though the trend recently has been towards the onion skin/salmon/pale apricot hues. Rosé can be produced from any red grape variety including Pinot Noir (the most popular in NZ), Merlot, Tempranillo, Syrah, Cabernet

ESK VALLEY HAWKE’S BAY ROSÉ 2018 Ripe red berry and tree fruits bouquet with cherry and plum, some strawberry then roses. A noticeable layer of gunflint and clay suggestions adding a subtle complexity. Crisp and dry on the palate with a core of red fruit flavours, some ultra-fine skin tannins and refreshing acid line. Well-made and quite lengthy. Best drinking from today and through 2020. Points 93 RRP $19.99 Distributor: Esk Valley Phone: (09) 255 0660 www.eskvalley.co.nz

FMCG BUSINESS: THE SHOUT - MARCH 2019

Sauvignon and Cabernet Franc among the more widely used. Wineries that specifically produce red wine have the option to change the juice to skin ratio allowing winemakers to produce a darker coloured wine. To achieve this they must remove some juice. This process is called Saignée - a French term meaning ‘bleed’. The juice that is ‘bled’ away 12 – 24 hours post skin contact is used to make rosé. The second method is when no bleeding happens with the intended outcome of 100% of the juice is a Rosé wine (12-24 hours skin contact still required).

[ tasting notes ]

ME BY MATAHIWI ESTATE WAIRARAPA ROSÉ 2018 Plush, fruity and refreshingly fragrant bouquet of rosé. Cherry and raspberry, sweet plum and rose. Crisp, fruity, refreshing and dry on the finish. Fruit flavours reflect the nose, lovely acid line and lightweight bright finish. Lots to like, easy to drink. Best from today and through 2020. Points 92 RRP $21.99 Distributor: Matahiwi Estate Winery Phone: (06) 370 1000 www.matahiwi.co.nz TOI TOI SARA’S MARLBOROUGH ROSÉ 2018 From a noticeable onion skin-hued appearance comes aromas of apple and red plum, a hint of strawberry, rose and saffron. Dry on the palate with flavours that mirror the nose, ultra-fine fruit tannins and bright acid line show off the texture and European style this wine is. Dry on the finish with best drinking from today and through 2021. Points 92 RRP $16.99 Distributor: Toi Toi Wines Phone: (09) 972 9498 www.toitoiwines.co.nz

HAWKDUN RISE PINOT NOIR CENTRAL OTAGO ROSÉ 2018 Close your eyes and smell the sweet summer air - a bouquet and palate that reminds me of fleshy juicy red berry fruits, sweet peach and red plum. Crisp cool climate acidity, super fine fruit tannins and persistent refreshing finish. Best enjoyed from today and through 2020. Points 92 RRP $25.00 Distributor: Hawkdun Rise Phone: (03) 448 7782 www.hawkdunrise.co.nz

ELEPHANT HILL HAWKE’S BAY TEMPRANILLO ROSÉ 2018 Made with Tempranillo fruit, this wine shows a familiar bouquet of rosé first with cherry and red apple skin, some peach and floral notes then a distinctive mineral and dried rock earth layer. Dry on the palate with earthy and rocky mineral flavours then light red fruits. Fine dusty tannins and plenty of acidity. A lovely wine with a point of difference. Balanced and well made. Drink now and through 2020. Points 92 RRP $29.00 Distributor: Procure Liquor Phone: (09) 378 9385 www.elephanthill.co.nz

WAIRAU RIVER MARLBOROUGH ROSÉ 2018 Pale salmon and onion skin hues. Fruity and engaging bouquet with aromas of peach tea and cherry, some apple and floral moments. Crisp and dry with chalky texture, plenty of acidity adding tension and freshness. Fruit flavours reflect the nose and a light stony soil suggestion adding a layer of flavour. Lengthy finish, balanced and well made. Drink now and through 2021. Points 92 RRP $20 Distributor: Wairau River Wines Phone: (03) 572 7950 www.wairauriverwines.com BANNOCK BRAE CENTRAL OTAGO PINOT ROSÉ 2018 Bright pink and red hues, bright pink and red fruits. Raspberries and cherries, red apple and plum. Plush, fruity, crisp, fresh, textured and dry. Fruit flavours reflect the nose, especially cherry and raspberry. Balanced fruity finish. Best form today and through 2021. Points 90 RRP $25.00 Distributor: Sapor Makers & Growers Phone: (03) 544 6385 www.bannockbrae.co.nz

FMCG BUSINESS: THE SHOUT - MARCH 2019

[ tasting notes ]

Bucket List wines of

Central Otago

The wine region of Central Otago sits on the 45th parallel near the bottom of the South Island. This southerly location means all farming and those who live there are subject to a semi-continental/continental climate. Winters can be harsh and cold, while Summers can be quite warm and very sunny. Most vineyards are at elevation, meaning well above sea-level, starting at around 120 metres. Average rainfall is low, and many vineyards require irrigation. Frost remains the biggest threat to viticulture. From what seems like an unforgiving landscape and climate the overall quality of wine produced in this region is in fact very high. Care and attention in the vineyards and wineries speak a lot to the successes of the region. The landscape is dramatic, with the southern alps towering above, giant shards of schist punch through the valley floor around the Gibbston Valley, Bannockburn and Bendigo; pink and white quartz, pebbles, loams and loose schist litter the landscape,

AKARUA THE SIREN CENTRAL OTAGO PINOT NOIR 2016 Varietal, youthful, specific and captivating bouquet with voices of place and fruit, a steely raw energy, very specific barrel use with spice white smoke qualities. There’s a je ne sais quoi attribute as well - a certain synergy of floral and mineral. A core of fruit and sweet oak flavours on the palate; spices, white smoke, flowers and harmony. Long finish, complex and excellent. Best window for drinking 2020 through 2030. Points 97 RRP $110.00 Distributor: Akarua Phone: (03) 445 0897 www.akarua.com

FMCG BUSINESS: THE SHOUT - MARCH 2019

and glacial activity over several millennia have carved out valleys and exposed a variety of soils. Central Otago is perhaps best known for Pinot Noir then Riesling. Sadly, not enough Chardonnay is planted, it is an exciting variety for the region. Site and soil play a big role with sub-regional differences noticeable in the glass. Flavours of dark cherry and plum, undergrowth, schist and mineral dominate, with a distinctive dried herb feature (Central Otago landscape has a lot of wild thyme growing). Some of the best Riesling in New Zealand can be produced in Central Otago, with dry to off-dry expressions often of very high quality. Pinot Gris is also very successful with over 200 hectares planted. Gamay and Chenin Blanc are varieties to watch out for. Orange wine, Natural wine and Certified Bio-Gro sites are on the increase. The whole region is evolving and maturing. Wines tasted this month reflect this sense of focus and maturity as well as highlighting the importance of Pinot Noir and Chardonnay to the region.

[ tasting notes ]

DOMAIN ROAD VINEYARD DEFIANCE CENTRAL OTAGO PINOT NOIR 2016 Direct and to-the-point bouquet of Pinot Noir with dark red berry fruits of raspberry, cherry, plum and currants, wild spices, layers of oak and toasty wood, complex and intriguing, youthful and engaging. Transitions to the palate seamlessly with flavours and textures that reflect the nose; bold youthful tannins and acidity to match. Long finish. Still very young needing a lot more cellar time. Suggested drinking window 2022 through 2032+. Points 97 RRP $65.00 Distributor: Co Pilot Phone: (03) 445 4244 www.domainroad.co.nz DOMAIN ROAD VINEYARD DEFIANCE CENTRAL OTAGO CHARDONNAY 2017 An intriguing and complex bouquet with distinctive aromas of minerality, fruit and oak. Apple and white peach, quince and grapefruit, baking spices and nutty toasty oak layers. Dry on the palate, youthful, fresh, vibrant and engaging textures. Flavours of citrus and stone fruit then nutty toasty oak layers with fine tannins. Medium+ acidity and weight. A delicious wine that captivates and shows off Chardonnay from the region. Best drinking from 2020 through 2028. Points 96 RRP $28.00 Distributor: Co Pilot Phone: (03) 445 4244 www.domainroad.co.nz

DOMAIN ROAD VINEYARD PARADISE CENTRAL OTAGO PINOT NOIR 2015 A bouquet that begins with an immediate crescendo an impact of fruit, spice, toasty oak and savoury dried herb layers atop a basket of red fruit. Sounds a bit poetic, yet this is how the wine unfurls on the nose. Dry, textured and fruity on the palate. Youthful, vibrant tannins and prominent acidity add texture and structure alongside berry fruit flavours, barrel and spice flavours. A wine that needs more cellar time to reveal its best. Best drinking from 2022 through 2032. Points 95 RRP $85.00 Distributor: Co Pilot Phone: (03) 445 4244 www.domainroad.co.nz DOMAIN ROAD VINEYARD BANNOCKBURN CENTRAL OTAGO PINOT NOIR 2016 There’s no mistaking the bouquet and origin of this wine - with a savoury wild thyme and dried herb scents leading to aromas of oak, dark cherry and dried raspberry. The aromas are captivating and alluring. Lots of youthful energy. On the palate - dry, textured, tense, fruity and firm. Youthful tannins and noticeable acidity with ripe red berry fruit flavours at the core. A wine still coming into balance, yet drinking nicely now as well. Complex, youthful and lengthy. Best drinking window 2020 through 2030. Points 94 RRP $40.00 Distributor: Co Pilot Phone: (03) 445 4244 www.domainroad.co.nz

DOMAINE THOMSON SURVEYOR THOMSON CENTRAL OTAGO PINOT NOIR 2015 A fine and complex bouquet with calm yet distinctive aromas of ripe red berry fruits, layers of toasty oak and smoky wood spices. Equally complex on the palate with dark cherry, tea and brown spices, raspberry and old rose flavours. Firm yet fine youthful tannin and acidity adding tension and poise as well as charm and some elegance. Dry finish, well made and quite complex. Best window for drinking early 2020 through 2026. Points 94 RRP $55.00 Distributor: Domaine Thomson Phone: (03) 445 4912 www.domainethomsonwines.com AMISFIELD BREAKNECK RESERVE CENTRAL OTAGO PINOT NOIR 2016 Vibrant, complex and enticing bouquet with aromas and flavours of dark cherry and wood spices, roasted nuts and baking spices. Firm and dry on the palate with some youthful grippy tannins and abundant acidity. These attributes along with the core of fruit and minerality begin to reveal the cellar time still required to allow this wine to integrate and show its true potential. Best drinking from 2022 through 2028. Points 94 RRP $80.00 Distributor: Amisfield Phone: (03) 428 0406 www.amisfield.co.nz

FMCG BUSINESS: THE SHOUT - MARCH 2019

BREWING IN NEW ZEALAND AN ECONOMIC REPORT

Dylan Firth Executive Director, Brewers Association of New Zealand

THE NEW Zealand Brewing industry has come a long way in the last 10 - 15 years. There has been unprecedented growth in craft and small breweries and an increased focus on developing a vast range of styles and flavours. But while we often recognise the positive intangible elements of ‘having more beers to choose from’, we don’t always look at what this means in terms of the significant contribution the industry makes to New Zealand’s economy. The Brewers Association of New Zealand contracted the New Zealand Institute of Economic Research (NZIER) to analyse the New Zealand Brewing industry and its contribution to the New Zealand economy for the year to March 2018. This report highlighted the significant financial contribution the industry makes in New Zealand, benefitting not only the producers, but also, supply chain and government tax revenue. What follows is a brief summary of some of the findings. From the grain to the glass, the New Zealand brewing industry was worth $2.3 billion in the year to March 2018. In this value chain, the industry contributes $640 million in value added (GDP). It also provides a significant contribution to government through $315 million in excise tax and

FMCG BUSINESS: THE SHOUT - MARCH 2019

collects $271 million in GST ($149 million from onlicences and $121 million from off-licences).

SALES On-licence premises domestic beer sales account for 60% of beer sales by value ($1.4 billion), with the remaining sold at off-licences ($932 million). By volume, off-licences dominate, with 70% of beer sales at supermarkets or liquor stores. The higher value market share in on-licences is attributed to higher cost structures, including more employees and capital costs, which result in a need for higher prices.

SUPPLY CHAIN New Zealand brewers purchase $593 million of intermediate products from New Zealand suppliers, this includes ingredients, transport, kegs and packaging. The New Zealand brewing industry uses $15 million of hops, with the majority of these grown in the Tasman region. One-third of the Tasman produced hops go into domestic production, the rest are exported to markets in the USA, Great Britain and Europe.

[ beer feature ]

THE GROWTH IN CRAFT BEER HAS SEEN AN EXPLOSION OF INDEPENDENT BREWERIES, INCREASING 16% PER YEAR SINCE 2008.” Grains and malts make up $27 million of the ingredient costs, with other ingredients (including yeast) making up $14 million.

EXPORT About 10% of beer produced in New Zealand is exported ($41 million), compared to 70% of wine. In addition, international tourists account for approximately $242 million in beer sales, which while not officially included in the statistics, can be considered exports. This is unsurprising as New Zealand has a growing reputation internationally as a beer tourism destination. As highlighted below, there is more variety on offer to visitors, which comes from the growth in the industry.

INDUSTRY GROWTH Craft beer has been growing strongly since 2008. With 218 breweries, New Zealand has more breweries per capita (4.56) than similarly established beer markets - the United Kingdom (3.04), Australia (2.10) and the United States (1.96). The growth in craft beer has seen an explosion of independent breweries, increasing 16% per year since 2008. However, overall consumption of beer and alcohol in general has declined. Last year’s Ministry of Health – Annual Household Survey showed about four in five adults (78.7%) consumed alcohol in the past year (2017/18). This is down from 79.3% in the 2016/17 year and overall down from 83.6% in 2006/7, a 4.9% decline to date. This is not necessarily negative. The industry has seen a shift in the last few years from volume to value, with consumers looking to spend more on less. We believe this is a positive trend reflecting a growing move towards moderation, and a more mature and responsible drinking culture.

CONSUMER PREFERENCE Both craft beer and lighter options [mid strength (1.15-3.5%), low alcohol (under 1.15%), low-carb and flavoured] have seen a combined growth of 13% per annum since 2016 - representing 10% and 7% of sales respectively in 2018. The ‘Lagers of the World’ segment (e.g. Heineken or Stella Artois) has seen a 6% increase since 2016 and currently represents 32% of supermarket beer sales. Pale ales dominate the craft beer market in traditional liquor retailing and supermarkets. In 2018, just under half of all craft beer sales in traditional liquor retailing and supermarkets were either a pale ale or an India pale ale. This all adds up to a snapshot of what the brewing industry contributes economically. It is by no means every measure and will likely change again in a short time. There

is still a lack of quality data in areas such as employment and the turnover and profitability of some of the smaller breweries. But it is still important for us to recognise the economic value this industry makes. Discussions on long-term sustainability and market saturation will need to take place at some stage. The per capita breweries figures indicate we are near the top of the breweries per person list internationally, even in a declining consumption environment.” The Brewers Association applauds all those involved in the New Zealand brewing industry for their continued innovation and commitment to producing high quality products. Those businesses and individuals who make it their day to day mission to improve the category and open consumers to new and exciting experiences, make the sector what it is today. FMCG BUSINESS: THE SHOUT - MARCH 2019

INSIDE THE WORLD OF IRISH ALES John Oszajka has us all wanting to claim a bit of the orange and the green.

John Oszajca john@newzealandbrewer.co.nz

WHEN THIS author thinks of beer, one of the first images that comes to mind is that of the idealized Irish Pub; some rhotic speaking publican pouring a creamy pint of something black. This is perhaps a notion that should be no surprise, given the rich history of beer in Ireland and the impact their beer has made across the globe. However, there is far more to Irish beer than simply Guinness. As it happens, Ireland’s environmental conditions have proven perfect for growing barley, making it one of the country’s principle crops. The Irish have been turning that barley into beer since as far back as the Bronze Age. While we know little about these pre-historic Celtic beers, a brief mention of these ancient brews was found in an Irish poem written no later than the 9th century. This cursory reference simply states that these “red ales” were drunk in “Dorind”, and “about the land of the Cruithni”. However these pre-historic red ales, would have born little resemblance to the modern Irish red ales produced today.

FMCG BUSINESS: THE SHOUT - MARCH 2019

As the centuries passed and trade led to a certain degree of homogeneity, Irish beer styles evolved to more closely resemble other beer styles common in England and Scotland. Still, (as with most beer styles), politics, geography, evolving tastes, and other unique environmental pressures, led to a few unique Irish beer styles that endure to this day. Let’s take a look at two of the more popular beer styles that come to mind when one ponders the unique history and flavours of Irish Ale.

IRISH DRY STOUT While lager makes up about 60% of the beer sold in Ireland, a surprising 35% (approximately) of the beer sold in the country is Stout; a statistic not common elsewhere in the world. Ireland’s love of Stout begins in the 18th century when the similar dark beer style known as “Porter” caught on with London’s river porters and soon spread across much of Europe, including Ireland. The first Porter brewed in Ireland is believed

[ beer feature ] to have been brewed in 1776. A little more than a decade later a brewer by the name of Arthur Guinness would try his hand at brewing the increasingly popular style as well. It wasn’t long before Guinness had phased out all other beer styles in favour of Porter. Soon, other Irish brewers such as Beamish and Crawford, and Murphy’s Brewery followed suit. Originally the term “Stout” simply referred to a strong beer. The term was not in any way synonymous with being dark in colour. A strong version of a Porter was referred to as a “Stout Porter”. As time passed and the style evolved, Porter was dropped from the name altogether and the beer was forevermore known as “Stout”. One of the defining differences between Stout and Porter (at least historically) is the malt which gives it its infamous black colour and roasty flavours. Originally both Porter and Stout were made with “Black Patent Malt”; a type of highly kilned malted barley. However, Arthur Guinness realized that he could save money by using unmalted “Roasted Barley” which was not taxed in the same way that malted barley was. This gave Guinness (and Stout in general) an economic advantage over the more expensive Porter; a fact that nearly drove Porter into extinction and led to Stout becoming the reigning king of dark beer styles. Over time, Irish Stouts continued to evolve. The alcohol levels dropped and Irish brewers stopped using “Brown Malt”, as was commonly used in English Porter. Instead preferring to derive all of their roasty flavours from the aforementioned Roasted Barley. Today we know this style as the “Irish Dry Stout”. A typical Irish Dry Stout is a very dark (nearly black), roasty, bitter, creamy ale, rich in coffee and dark chocolate-like flavours. Typically clocking in between 4% - 5% ABV, an Irish Dry Stout gets its dry finish from the use of roasted barley, and a reasonably high hopping rate for such a low ABV beer. Irish Dry Stouts also typically forgo the use of “Crystal Malts” (which contribute sweetness and body), in favour of “Flaked Barley” which gives the beer it’s famously creamy mouth feel. This creamy mouthfeel is often accentuated by the use of nitrogen rather than the traditional CO2. This gives beers, like Guinness, that classic foamy head that seems to cascade through the beer in near slow motion. Guinness Draught is the most popular Stout in the world, and it is commonly found on tap, and on grocery store shelves here

in New Zealand; though Murphy’s is also relatively easy to find as well. Not often produced by New Zealand craft breweries, there are at least a few craft options for those seeking a uniquely Kiwi take on the style. One such example is Garage Project’s “Snug”. An Irish Dry Stout that aims to provide “the perfect balance of chocolate, coffee and full bodied creamy mouth feel.” You might also consider seeking out “The Ace of Spades” from Good George Brewing; another Irish Dry Stout from New Zealand, which is rich in notes of coffee, caramel, vanilla, and ends with a smooth finish. FMCG BUSINESS: THE SHOUT - MARCH 2019

[ beer feature ] IRISH RED ALE Despite the historical references to the ancient red ales of Ireland, what we know of as “Irish Red Ale” today is a comparatively modern creation. Rather than having evolved from the traditional Irish Gruits (unhopped beer), the modern Irish Red Ale appears to have evolved as an Irish take on the British Pale Ales popular in the 18th century. The key difference being a lower hopping rate and a greater focus on malt. Irish Ale yeast strains also impart less fruity flavours than most English Ale strains, resulting in a cleaner beer. Although still produced in Ireland by a number of breweries, (the most popular of which is Smithwick’s Draught Ale), it’s interesting to note that Irish Red Ale is decidedly more popular in the United States than in its home country. In the early 1980s, Coors Brewing Company licensed the name “Killian” from George Killian Lett, of Lett’s Brewery in Enniscorthy, Ireland. They began brewing Lett’s famous “Enniscorthy Ruby Ale” under the name “Killian’s Irish Red”, a red lager brewed in the Irish Red style. With the marketing power of Coors behind the beer, it caught on in America and has helped insure an enduring appreciation for the style. However, New Zealand beer drinkers would likely be more familiar with Kilkenny, an Irish Red from the makers of Guinness. Typically clocking in at between 4% - 5% ABV (though stronger examples exist), a traditional Irish Red Ale is an easy drinking, malt

DID YOU KNOW? St. Patrick was patron saint and national apostle of Ireland who is credited with successfully bringing Christianity to Ireland. March 17 is widely accepted as the date of St. Patrick’s death in A.D. 461 – which is why St. Patrick’s Day is celebrated on 17th March.

In the APRIL issue of

Cameron Douglas MS tastes Chardonnay and varietals from the Hawke’s Bay region. FOR BOOKINGS, CONTACT The Shout NZ Sales Director

Jacqueline Freeman jfreeman@intermedianz.co.nz 021 286 7600

If you’re looking to get yourself a locally brewed example of an Irish Red Ale, you might try “The Leprechauns Belle” from Deep Creek Brewing Company.

forward, clean ale. The low hopping rate gives the initial impression of sweetness, however, the small amount of roasted barley – typically used to provide the beer’s reddish hue – contributes to a relatively dry finish. If you’re looking to get yourself a locally brewed example of an Irish Red Ale, you might try “The Leprechauns Belle” from Deep Creek Brewing Company. According to the company, their Irish Red “follows their family roots back to the Emerald Isle to create a Deep Creek version [of the style]”. In The Leprechauns Belle you’ll find a “malt dominated beer with beautiful roasted barley and hints of orange blossom flavours”. Or, for an Irish Red with a New Zealand Twist, you might try Hallertau Brewing Company’s “Copper Tart Red Ale”: a rich, malt-forward Irish Red Ale with notes of caramel and chocolate. Traditional Irish Ales are not going to win over many hop heads. Nor will they be the beer of choice for those who like to drink their pale lager by the twelve-pack rather than the pint. But if you’re the kind of beer drinker that enjoys an easy drinking, sessionable ale, that is steeped in as much Irish soul as it is in malty flavour, then either of these Irish ales just might be for you. So the next time you find yourself perched at a barstool at some oak-lined Irish pub, grab yourself a pint of the good stuff!

[ craft beer ]

NZ’S HOTTEST CRAFT BEERS WELLINGTON BREWERY Garage Project dominated the GABS Hottest 100 Kiwi Craft Beers for 2018, taking out first place with its Pernicious Weed, second with its DFA, and landing a total of 25 beers on the list overall. Completing the podium was Panhead’s Supercharger American Pale Ale, which dropped from the top spot that it occupied in 2016 and 2017 down to third place overall. Co-founder of Garage Project Jos Ruffell described the result as “fantastic” and said that it was “brilliant” to see both Pernicious Weed and DFA – formerly known as Death From Above – resonating with so many Kiwi drinkers. “Given the quality and range of beer available here, we’re proud to be represented on the list and encouraged to see such an eclectic mix of beers that are earning drinker’s votes,” he said. “We have a wonderful crew that make Garage Project possible and given the sheer amount of passion and work they put in every day we were

hopeful of a good showing, but to get 25 on the list even took us by surprise.” Since opening in 2011, Garage Project has carved out a loyal following of drinkers attracted to its hugely prolific and often progressive beer output, and it’s this creativity that Ruffell credits with Garage Project’s runaway success. “It does seem like there is a growing audience looking to try something new, and our beers are hitting the mark for them. At the end of the day, we brew what excites us and release them in a way we think is interesting and unique. It’s great to see people responding to that.” Auckland-based Behemoth Brewing – which trades in Australia as Chur Brewing – also had a stellar showing in the 2018 countdown, landing in 4th, 5th and 7th place for its Lid Ripper, Snow Mexican and Dump the Trump beers respectively, and earning a total of 16 beers on the overall list. Other notable performances in terms of total number of beers on the list include 8 Wired with eight, Epic, Liberty and Parrotdog with six each, and Deep Creek and Panhead with five apiece. Another standout statistic from the countdown was the number of beers in the Hottest 100 made by independent breweries – 93 – leaving only 7 spots on the list for the big boys. That figure included five beers from Panhead and two from Emerson’s, both owned by Lion. So how does Ruffell rate the idea that independence is of growing importance to Kiwi craft drinkers? “It does seem to be important, but then again, the number one beer for the last several years has been from a Lion owned brewery,” said Ruffell, in reference to Panhead. “So it seems important in one context, but for some drinkers, not critical. “It is encouraging to see the efforts of independent breweries being recognised and supported in the list though, as they are the breweries that are really sticking their necks out to push brewing and beer forward.” The full list is available on the GABS Hottest 100 Kiwi Craft Beers website. Sources: theshout.com.au Beer & Brewer

IT IS ENCOURAGING TO SEE THE EFFORTS OF INDEPENDENT BREWERIES BEING RECOGNIZED.” JOS RUFFELL, CO-FOUNDER OF GARAGE PROJECT

FMCG BUSINESS: THE SHOUT - MARCH 2019

FMCG Business March 2019

Articles inside

DEFIANCE PROVES SUCCESSFUL FOR DOMAIN ROAD

SJP TEAMS UP WITH INVIVO