FMCG Business September 2019 by The Intermedia Group

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L E A D I N G

I N D U S T R Y

SEPTEMBER 2019 – Volume 6 – No 8

PLUS! NZ FOOD AWARDS FINALISTS SHOWCASE NEW ZEALAND’S LARGEST FMCG AUDIENCE

N E W S

contents SEPTEMBER 2019

UP FRONT 4

EDITOR’S NOTE

29 FGC The big packaging challenge

INDUSTRY NEWS

30 LEGAL ADVICE

SPECIAL FEATURES

18 THIRST QUENCHERS 20 HEALTH & WELLNESS 26 LET’S TALK RUBBISH! Sustainable packaging, recycling and waste management

REGULARS 7

WHAT’S HOT New products in store

10 GEAR New tech for work, rest and play 12 PROFILE RJ’s sweet success story

14 TRENDS Are we losing our bargains? Lew Bentley explains. 16 BEST IN SEASON Fresh produce update 17 EXPORT Avocado with an edge 22 ECO-FRIENDLY PIONEERS New environmental homecare products.

GOOD BUSINESS 24 INDUSTRY NEWS 26 SUSTAINABILITY Let’s talk rubbish!

EVENTS 32 WHAT’S ON Events for your diary 34 FMCG BUSINESS MARKETING SUMMIT 35 OUT & ABOUT Our people - spotted at events around NZ

THE SHOUT 3

EDITOR’S NOTE

4 INDUSTRY NEWS AND INSIGHTS 7 A FRESH LOOK FOR OLD COACH ROAD Anna Seifried explains the new branding on a classic range 8 ON TREND This month’s must-try classics and new releases 10 NIELSEN UK: WINE BOXES AND CANS COME OF AGE International insights 12 ROSÉ AND PINOT NOIR Tasting notes from Cameron Douglas MS 16 NZ DRAUGHT John Oszajca takes a look at the country’s most popular unpopular beer

FMCG BUSINESS - SEPTEMBER 2019

[ editorial ]

AWARD-WINNERS & TOP TRENDS Allergen-aware foods, vegan-friendly and hemp-based products are among the finalists of this year’s New Zealand Food Awards. Sixty individual products from 48 companies are finalists in 10 categories and one category winner will be named the Massey University Supreme Award winner at the Gala Dinner in Auckland on October 23. FMCG Business is proud to be media partner for this prestigious event again and we have a special lift-out section in this issue, featuring the Awards finalists. It’s been a super busy month for our team as we launched our first ever FMCG Business Marketing Summit. Our inspirational speakers included FGC Chief Executive Katherine Rich, Vicky Herring from the IRI and Lew Bentley from energi. We welcomed 170 attendees and were thrilled with the positive feedback and support from so many in the industry. According to predictions from Euromonitor, in the near future facial scanners will recognise customers as they enter the store, allowing for a tailored shopping experience. Connected appliances will monitor usage and automatically order replenishment items and immersive tech will enable sports and entertainment fans to see the world through their idol’s eyes. I’m pretty sure some of these developments are already being tested somewhere, but meanwhile we bring you the latest tech and gadget launches for work, rest and play on pg 10-11. You will find more trends to watch as well as industry news, legal advice and top tips from our team of industry experts in every issue of FMCG Business. Subscribe to our weekly news updates via www.fmcgbusiness.co.nz and join our daily conversations on Facebook, Twitter and Instagram. We’d love to hear from you!

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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 SALES MANAGER Brigid DiMattina bri@intermedianz.co.nz ph: 029 230 1372 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 ACTING CIRCULATIONS MANAGER Troy Brookes subscriptions@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

ISSN 2382-1663

FMCG Business is audited and verified by ABC.

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L E A D I N G

I N D U S T R Y

SEPTEMBER 2019 – Volume 6 – No 8

N E W S

ON THE COVER New Starbucks by Nespresso® will be launching into Grocery in late September 2019.

PLUS! NZ FOOD AWARDS FINALISTS SHOWCASE NEW ZEALAND’S LARGEST FMCG AUDIENCE

FMCG BUSINESS IS PROUDLY ASSOCIATED WITH

FMCG BUSINESS - SEPTEMBER 2019

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

[ news ]

NZ FOOD AWARDS REVEAL FUTURE TRENDS

Massey University Vice-Chancellor Professor Jan Thomas

Allergen-aware foods, vegan-friendly, hemp-based products, and gin and vodka handcrafted from sheep milk are among the finalists of this year’s New Zealand Food Awards. The finalists include several winners from previous years – Barker’s of Geraldine, Blue Frog Breakfast and The Pure Food Co – as well as new products including goat sausages and freeze-dried honey. Sixty individual products from 48 companies are finalists in 10 categories and one category winner will be named the Massey University Supreme Award winner at the Gala Dinner in Auckland on October 23. The awards have celebrated New Zealand manufactured products, focusing on innovation and excellence since 1987. Sponsored by the University, they are open to small and large food and beverage manufacturers, primary food producers, food service providers and ingredient supply companies. Massey Vice-Chancellor Professor Jan Thomas says the University’s connection to the New Zealand food industry dates back to its inception as an agricultural college, in 1927, and its patronage of the New Zealand Food Awards dates back to the awards’ inception 60 years later. “Through our excellent industry-engaged research and teaching, Massey has a key role in the success of the industry,” Professor Thomas says. “It is particularly good, therefore, to be able to support the innovators and success stories through these awards and we are extremely proud of the role the awards have had in recognising the excellence and importance of our world-class food and beverage industry.

FOR MORE INDUSTRY NEWS FOLLOW US ON 6

FMCG BUSINESS - SEPTEMBER 2019

“The standard of this year’s entries was, again, outstanding and the calibre and innovation of the finalists reflects the thought, care and artistry of the producers. Selecting finalists was tough enough for our judges; choosing winners will be a supreme challenge,” says Thomas. The New Zealand Food Awards are an opportunity for businesses to benchmark their product against others, says awards judge, Ray Mc Vinnie. “I think it gives New Zealand companies an awesome opportunity to showcase their expertise and the standards that they’re setting with their business practice against other companies. I think it’s a really good measuring stick, shows excellence and recognises innovation and creativity within the food and beverage industry within New Zealand.” Apart from Massey University, as principal sponsor and event organiser, the awards are made possible with the support of New Zealand Food Safety, Countdown, Cuisine Magazine, James & Wells, FMCG Business magazine, The Shout, Eagle Protect, the Palmerston North City Council, FoodHQ, New Zealand Trade and Enterprise, The FoodBowl, Z Energy, Villa Maria and The FoodPilot Winning products will earn the New Zealand Food Award’s Quality Mark to highlight the superiority of their products to both shoppers and the industry, as well as helping to boost sales and distribution both domestically and internationally. For more information see the special lift-out section in this issue, or visit www.foodawards.co.nz.

NEW ZEALAND FOOD AWARDS 2019 FINALISTS Who will be named the Supreme Winner?

www.foodawards.co.nz

CHECK OUT WWW.FMCGBUSINESS.CO.NZ

Unleash the Fire and Freeze Turn up the heat, then cool things down with Sour Patch Kids new Fire and Freeze. Fire releases a blaze of heat on your tongue and fire in your belly. But never fear, the Freeze flavour quickly cools things down. Together, these two create a sensory experience like no other.

NEW Farrah’s Wraps! Farrah’s have launched 3 new on-trend wrap flavours just in time for summer. Smoky Chipotle, Mediterranean Tomato and Chia, Oats & Hemp Wraps are guaranteed to fly off the shelves as Farrah’s encourage consumers to look outside their usual usage through delicious recipe inspiration. New Zealand made and yeast & dairy free, Farrah’s Wraps all come with a ‘won’t crack, won’t split’ when rolled promise. RRP $5.50. Contact Farrah’s for more information at info@farrahs.co.nz or call 0800 327 724.

Introducing Longopac a smarter way to bag waste Efficient, hygienic and environment-friendly, Longopac is a continuous waste bagging system purposefully designed for FMCG businesses which saves up to 70% plastic. Every bag is 100% full, 3 times stronger, 50% lighter than a traditional waste bag, available in 3 sizes and 6 colours to maximise recycling. www.easirecycling.co.nz info@easirecycling.co.nz 0800 342 3177

Everybody’s Kombucha is for Everybody Kombucha can be weird and taste a bit blah but this lovely little brew is made right in here in NZ and actually tastes good! Sold throughout PAK’nSave, New Worlds & Four Square it is even safe to be stored on the shelf. Available in 3 great flavours of Raspberry, Ginger Lemon & Sparkling Apple. https://www.facebook.com/ everybodyskombucha/ https://www.instagram.com/ everybodyskombucha/ info@naturalsugars.co.nz or T +64 9 377 7009

Meet the Fab 5 pure delish’s fantastic range of handmade bites & biscuits are the perfect treat or snack. Made from only the best real ingredients and available in 5 delicious flavours there is something to suit all; hot, ‘spicy ginger biscuits’, tropical ‘passion & coconut bites’ or the nut, seed and fruit based, ‘primal bites’. RRP$10.99. info@puredelish.co.nz www.puredelish.co.nz FMCG BUSINESS - SEPTEMBER 2019

[ cover story ]

INTRODUCING

NEW STARBUCKS BY NESPRESSO

In bringing together two of the world’s largest coffee brands, Nespresso and Starbucks, we are excited to deliver current consumer trends of quality, authenticity and innovation to the grocery market allowing consumers to now enjoy their favourite Starbucks coffee at-home. Combining the flair and popularity of the iconic coffee shop brand, with the quality credentials and expertise of the leading portioned coffee brand, Starbucks by Nespresso is launching into Grocery in late September 2019. The Starbucks by Nespresso range includes the three signature Starbucks roast profiles: Blond, Medium and Dark. From the light and mellow Starbucks Blonde Roast, through to the rich and full bodied Espresso and Caffé Verona roasts, we have a carefully selected range of roasts to best suit Kiwi’s coffee taste preferences. In addition, two Single-Origin roasts, Colombia and Sumatra, help further deliver on café coffee trends and the true quality credentials of the brand. The portioned capsule segment is driving growth within total coffee, growing MAT at more than 29%, almost five times faster than the total coffee category (Nielsen MAT to August 2019, value growth). Where Nespresso compatible capsules represent more than 60% of the market, FMCG BUSINESS - SEPTEMBER 2019

they are also the fastest growing format within Total Supermarket (Nielsen MAT to August 2019, value sales). With the highest average cost per cup of all coffee segments, consumer trade up into the premium portioned coffee space will help drive value sales and growth. Starbucks by Nespresso will further drive this category growth through innovation, whilst also helping bring new buyers into the grocery market. Nestlé New Zealand Head of Marketing Fraser Shrimpton said: “The launch of Starbucks by Nespresso into the New Zealand retail market marks the beginning of an exciting era for our Nestlé beverages business. With Nescafé, Nespresso and Starbucks, Nestlé now has the best coffee portfolio to delight consumers. “We are delighted to be able to bring innovation and better offerings to a larger number of consumers with this offering whilst also helping to drive performance of the overall coffee category,” Shrimpton added. An integrated marketing campaign including PR, Digital and Social Media supports the launch, as well as in-store activation and sampling to drive trial and advocacy for the brand.

“THE PORTIONED CAPSULE SEGMENT IS DRIVING GROWTH WITHIN TOTAL COFFEE, GROWING MAT AT OVER 29%.”

[ news ]

RED ROCK DELI DELUXE CRISPS

COUNTDOWN’S FIRST METRO STORE

Red Rock Deli is renowned for its premium deli inspired snacking products and innovative flavour combinations. Landing just in time for the start of the entertaining season, the brand-new range of Deluxe Crisps deliver a truly unique taste sensation. The new Deluxe Crisps range is perfect for the curious and adventurous foodie looking for new snacking and entertaining options. These Deluxe Crisps use only the finest quality ingredients, they are spritzed with premium infused oils and paired with carefully selected seasonings to work in perfect harmony. “At Red Rock Deli we believe that variety is the spice of life and with the combination of infused oils and unique deli inspired seasonings, our Deluxe Crisps range will not disappoint. Keep an eye out for the ultra-sleek black and metallic packaging and get ready to embark on a complex and enlivening taste journey,” says Anna Dempsey, Senior Brand Manager, Bluebird Foods Ltd. Available in three sophisticated flavours: • Vintage Cheddar, Caramelised Onion & Rosemary Oil • Chilli, Roast Garlic & Lemon Oil • Parmesan & Black Truffle Oil Find your favourite flavour of Deluxe Crisps from early September in selected supermarkets, petrol and convenience stores nationwide. Red Rock Deli Deluxe Crisps are available in 135g sharing bags for $4.49 RRP.

Auckland’s central city shoppers will soon experience a brand new type of food and grocery store with construction starting on Countdown’s first Metro in lower Albert Street. The new store, set to open in December, will create 50 new jobs and give city customers a curated range for a quick and easy shop on the go, including kombucha and cold brew coffee on tap, takeaway coffees, and an extensive range of food-to-go options for breakfast, snacks, lunch and dinner which will change throughout the day. Customer research highlighted that 70% of those surveyed in the CBD wanted to be able to access fresh fruit and vegetables more easily in the city; 74% wanted a greater range of snack options, and 65% wanted to be able to buy hot lunch meals to take away. Brett Ashley, Countdown’s General Manager Operations, says the new Metro concept is designed specifically with the Auckland CBD customer at heart. “Customer needs and trends are constantly changing. We know there are a growing number of people who forgo eating breakfast at home or bringing their lunch to work, and instead are looking for fresh and affordable food options near where they work,” says Ashley.

SAMSUNG NOTE 10/ NOTE 10+

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

The hotly anticipated Note 10 packs a huge amount into a tiny pocketsized design. The 6.3-inch Note 10 may have a big-screen, yet its bezelfree design means it fits onto a body that can still easily slip into a pocket or purse. Add to this the S-Pen stylus for scribbling notes, improved industrial-strength video recording, and the ability to seamlessly pair with a PC and you’ve got a productivity powerhouse in your pocket/purse. https://www.samsung.com/nz/ smartphones/galaxy-note10/ Note 10 $1,699 Note 10+ $2,299

SONY MW-ZX300

If you’re a child of the 80’s chances are that you’ll remember the Walkman. Well, they’re back. Best of all, you no longer need to stuff your pockets full of pesky cassettes. Sony’s NW-Zx300 has 64GB of storage, which is enough to hold hundreds of music tracks. Add support for most hi-res audio formats and high-end audio componentry, and you’ve got ear-pleasing audio on the go. https://www.sony.co.nz/electronics/walkman/nw-zx300 $949.95

NETGEAR XR700 Having invested in an ultra-fast broadband connection, the last thing you want is for your router to be your newest weak link. Netgear’s Nighthawk XR700 is aimed at power users and comes with 60GHz 802.11ad Wi-Fi as well as support for 10Gbps wired connections for added future-proofing. https://www.netgear.co.nz/home/ $949.99

FMCG BUSINESS - SEPTEMBER 2019

[ gear ]

HUAWEI Y9 PRIME

In 2019, life without a smartphone is unthinkable. From snapping photos to consuming media and staying in touch, a smartphone is essential. The good news is that it no longer costs a bomb to get a decent smartphone. Huawei’s Y9 Prime comes with 128MB of storage, which is plenty of room for music collections, and the Y9 Prime has an all-screen design with a pop-up camera. https://consumer.huawei.com/nz/phones/y9-prime-2019/ $419

HP SPECTRE X360 HP’s latest 2-in-1 Notebook ticks a whole lot of boxes, starting with a peeper pleasing copper/tan design featuring angled corners and chamfered edges. Rounding things out is plenty of power under the hood thanks to an Intel Core i7 CPU, a generous 16GB of RAM, and roomy 256GB SSD. Adding to an already stellar spec is its ability to convert into a tablet or tent mode for watching movies. https://www8.hp.com/nz/en/campaigns/spectre-x360/overview.html $2,898

SONY WF-SP900 WATERPROOF TRULY WIRELESS EARBUDS Sony’s newest wireless earbuds not only free you from cable tangles, but they’re also IPX5 rated so you can wear them in the pool. With six hours of listening from a single charge, they also have 4GB of storage (which is room for about plenty of songs), so you don’t even need a phone. Could they be the best poolside companion ever? https://www.sony.co.nz/electronics/truly-wireless/wf-sp900 $539

FMCG BUSINESS - SEPTEMBER 2019

SWEET SUCCESS STORY

RJ’s was established in October 1994 By Roger Halliwell and his son Regan. With a history in licorice manufacturing they had a clear plan for growing the licorice category in New Zealand and globally. They started with licorice allsorts, licorice logs and Raspberry licorice logs – and within four years they became New Zealand’s leading licorice brand. The true growth came from the innovation of putting chocolate in the middle of licorice in the year 2000. Now RJ’s number one selling product is the Raspberry Choc Twists 280g with continuing strong growth from year to year. The key to success in these early days was creating innovative products, implementing world class machinery, producing a high quality product and being based in Levin. Levin’s central location in New Zealand makes freighting product more efficient and is great to be a key contributor to their local community.

The Halliwells sold the business in 2015 and it is now owned by Quadrant private equity, a leading Australian private equity business. RJ’s have had very solid growth since then and have doubled the size of their business in four years. It’s an incredible New Zealand success story.

Keeping it fresh A key contributor to this success has been keeping the market fresh with NPD and the exciting acquisition of Nestle’s iconic New Zealand Brands in September 2018 – Black Knight, Fabulicious, Oddfellows, Mackintoshes, Lifesavers and Heards. RJ’s were also delighted to sign an agreement with Mondelez to produce the Jaffas product under licence.

RJ’s have also been involved in some fun events. One of these events was RJ’s 21st birthday where they successfully achieved the world record for the largest licorice allsort weighing in at a whopping 1.1 tonne.

RJ’s new brand story Whilst RJ’s history is all about licorice, with the recent acquisition of some of Nestle’s iconic brands RJ’s is now set to grow even faster and beyond purely licorice. RJ’s are passionate about creating and crafting extraordinary confectionery that is worth sharing. A spokesperson told FMCG Business: “Our business is built on manufacturing excellence, Confectionery expertise, brand heritage, use of superior ingredients and we believe in meaningful long term partnerships. It is our ambition to be New Zealand’s most loved and well-known confectionery brand.”

Who knew this about licorice?

• Licorice comes from a plant called the Glycyrrhiza glabra, meaning ‘sweet root’ in Greek from which the sweet ﬂavour can be extracted. The licorice plant is a legume related to beans and peas and is native to southern Europe and parts of Asia. It’s a herbaceous perennial, growing to 1m in height but the root grows approximately 15metres from the plant. Licorice grows best in deep, fertile, well-drained soils with full sun and is harvested in autumn 2-3 years after planting. • Black licorice offers some amazing health benefits. Much of the rich, distinctive taste of black licorice comes from the key ingredient molasses, which recent studies have shown to be high in antioxidants. Foods rich in antioxidants, such as blueberries, kale and black liquorice, are proven to be beneficial for the gut and digestive health. 12

FMCG BUSINESS - SEPTEMBER 2019

RJ’s successfully achieved the world record for the largest licorice allsort – as part of their 21st birthday celebrations.

[ profile ]

RJ’s brand is all about playful Kiwi indulgence. “We’re RJ’s, New Zealand’s finest, and we do it for fun.” “People ask us what makes our licorice so fantastic, well it’s all about generations of passionate people, Kiwi ingenuity and simple good times that inspire us! From our humble little town, Levin, we started mucking about with licorice. A little of this here, a twist of that there, and we soon found the recipe for the world’s smoothest, most flavourful, most addictive soft eating licorice. “Doesn’t matter what it is, we’ll make it our own, have some fun with it, and wind up being the best in the world. So it’s always an easy choice when Kiwis need outstanding licorice or lollies and the taste of home, because they’re one and the same. We have fun making it so you can have fun eating it. “RJ’s are now 1 in 5 purchases of sugar confectionery. RJ’s are responsible for 20% of the Dollar Sales in Sugar Confectionery (source: MAT Dollar sales TKA excl Gum & Mints to 16 June 2019, IRI). Where the Total Sugar confectionery category is growing at 3.3%, RJ’s are ahead with 4.4% growth.

And now we have a whole new look too for better standout on shelf. A craft look to emphasise our traditional credentials, clear bold graphics and a bigger logo to help consumers see us on shelf. “We have stepped up with more innovation and support too. RJ’s most recent launch has been Mixed licorice bullets (dark and milk chocolate outer with a chewy licorice centre) and Mixed Raspberry bullets (milk and white chocolate outer with a chewy Raspberry centre). Both come in a 220g resealable pack and a handy 45g snack pack.

“We have supported Fabulicious with a “Fabulicious week” inviting consumers to Fab themselves up with the help of RJ’s. Consumers loved this idea and love the fun aspects of the brand. “We have also recently added to the famous RJ’s Licorice Allsorts family with the RJ’s AllBlack sorts securing a sponsorship of our famous AllBlacks for the Rugby World Cup. They have now started to come off the line in Levin. “At RJ’s we are excited about the future and working with all our customers and consumers who have supported us through the years.” FMCG BUSINESS - SEPTEMBER 2019

ARE WE LOSING OUR

BARGAINS?

About a year ago there was an article in the New Zealand Herald claiming that “$6 out of every $10 spent on groceries was going on items which are on sale or promotion.” What’s more, we are internationally way ahead of the curve, with Australians spending $4 out of $10 on promoted items, the British $3, Germans $2 and the French just $1.80. This tallies with our traditional love of bargains that The Warehouse leveraged for decades. Bargains make us feel like economically sensible and virtuous shoppers. It also resonates with the aggressive grocery promotions waiting for us in every aisle on every shopping trip. But on closer inspection, this picture is fading. Recent Nielsen data shows that the proportion of

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

Proportion of Purchases on Promotion 54%

(Source: Nielsen, April MAT)

52%

50%

49%

grocery purchases on promotion has been steadily declining, and is now down to $4.90 out of every $10. This decline in purchases on promotion is across most categories, with Fresh Food the main exception. Why are we buying fewer groceries on promotion? Here are five explanations that contribute to this trend:

1. A change in pricing mechanism There has been a steady increase in the use of everyday low pricing as opposed to hi-lo deep discounting. Countdown’s Price Lockdown strategy is a perfect example of this.

2. More sophisticated analysis of price elasticity According to Nielsen, there is a growing sophistication in the understanding of price elasticity amongst FMCG marketers. Responsiveness to price promotions varies across brands and products. The consequence of this is that compared to the days of blast-promoting everything, companies are becoming more selective with what they promote, and what they maintain at standard shelf pricing.

3. Innovative new product development

2016 14

2017

FMCG BUSINESS - SEPTEMBER 2019

2018

2019

Casting an eye across many shelves you’ll find a huge growth in product innovation. Whether it is new brands of kombucha, spicy sauces, vegan and vegetarian, ethnic foods, health and beauty potions, or frozen desserts, there is a lot of diversification in supermarkets. This is especially driven by smaller, local companies who are marketing with a mindset of value creation rather than price reduction.

[ trends ] Purchases on Promotion 2019 vs 2018

Factors Influencing Grocery Shoppers

(Source: Nielsen, April MAT 2019 vs 2018)

Fresh Food

0.50%

Personal Care

-0.60%

Confectionery

-2.10%

Pet Food

-2.40%

General Gorcery

-2.40%

Chilled Food

-2.40%

Beverages

22%

-2.50%

Household

24%

-2.60%

Froz en Food Baby Food

(Source: Energi, n= 283, August 2019)

-2.70%

Save as much as possible 29%

Take care for everyone at home Like to browse for new items to try

25%

Do shopping as quickly as possible

-5.80%

4. Premiumisation

5. More balanced shopper demand

In keeping with the rise in product innovation, there has also been a premiumisation of higher priced products in many categories. This trend is influencing traditionally high value categories such as the deli with products like buffalo mozzarella and cured meats. It is also making significant headway across more staple categories like dairy, fresh meat, frozen foods, ice cream. A quick scan of the shelves on my last trip to the supermarket discovered a $35 bottle of maple syrup, and a $65 bottle of ‘adult’ soft drink cordial. Another symptom of premiumisation has been the launch of ‘Pams Finest’. The traditional home brand of value staples now features items such as Mascarpone & Black Truffle Cream Pasta Sauce. This is targeting a new segment of everyday sophistication.

Recent Energi supermarket shopper research shows that while price is the most significant overall factor, it is by no means the sole driver of grocery shopping. Indeed, the overall weighting of influencing factors is relatively balanced between wanting to save, to take care of everyone at home, to browse for new things and to get through the store quickly. So, are we losing our bargains? Not really. We still buy a lot on promoted price. However, the concept of bargains is evolving from blunt reductions to more sophisticated and targeted forms. And the appeal of promotions faces more competition in the form of exciting and innovative products that command a premium by adding value.

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For enquiries and further information contact your local Centurionz Sales Representative today.

[ fresh produce ]

BEST IN SEASON New Zealand Navel oranges are still plentiful and will be available through until December. Sweet and juicy New Zealand tangelos appear this month and will be around through to December also. Other citrus fruit, including the delicious and easy to peel Encore mandarins will arrive and lemons remain abundant. The Californian grape season is at its peak from September until January, so imported grapes are good buying from now on. A selection of black, green and red varieties add colour, vibrancy and interest to your produce section.

Herbs

“TO EAT DRAGON FRUIT, SLICE IN HALF AND SCOOP FLESH OUT WITH A SPOON.”

Although most fresh herbs are available year-round due to hydroponic growing, spring is when herbs naturally flourish. Three of the most common herbs consumers are always after include mint, coriander and parsley, but don’t forget about other versatile varieties such as basil, chives, thyme and tarragon. What to look for: Look for bright, fresh, green leaves with no wilting and order small quantities regularly to make sure your stock is as fresh as possible. Offer different varieties to shoppers to keep your herb stand interesting. Storage/handling: A large selection of fresh herbs now come pre-cut and packaged for convenience - be sure to keep these refrigerated. Potted herbs will have been well-watered before being dispatched to you, so you shouldn’t need to water them if you are ordering small quantities often and turning your stock over.

Dragon fruit This exotic, vivid pink tropical fruit with yellow and green-tipped spines is actually a type of cactus. It is native to Mexico, Central and South America and is also known as ‘pitaya’. There are two varieties of dragon fruit – white flesh and red flesh, however they both have pink skin so it can be difficult to distinguish the 16

FMCG BUSINESS - SEPTEMBER 2019

difference. When purchasing from your wholesaler, look for the sticker on the fruit which will tell you. Dragon fruit are only around for a three-month window and are a great way to add something different to your produce selection. To eat dragon fruit, slice in half and scoop flesh out with a spoon, cut into cubes and add to a fruit salad or eat alone. Do not to consume any of the pink skin. What to look for: Dragon fruit should be bright pink with even-coloured, unblotched skin. Storage/handling: Dragon fruit can be kept at room temperature but refrigerating them will extend their shelf life, so keep refrigerated where possible.

Tropical fruit Mangos, which are imported yearround from different locations world-wide to follow the seasons, will be in tight supply this month. Filipino pawpaw (papaya) and Filipino and South American pineapple will be available along with Australian honeydew melon, rockmelon and watermelon. Bananas are the staple fruit of the tropics - volume and price will be dependent on market demand. What to look for: Look for plump and round mangos. Pawpaw should be firm and heavy for their size – look for fruit that is mostly yellow with a little green. Pineapple should also be green or yellow, never brown as this indicates over-ripeness. Choose melons that are free of blemishes and heavy for their size. Storage/handling: A lot of care has been taken to transport imported tropical fruit without causing damage, so continue to handle with care. Ensure there is always cut fruit available – especially all melon varieties as consumers like to see this, and it is a great way to increase sales.

Join us on

www.unitedfresh.co.nz

[ export ]

AVOCADO WITH AN EDGE The cuisine trend that started in New Zealand – avocado oil – is still evolving and changing, says James Greenlees. Greenlees is GM of Avocado Oil NZ, the Tauranga business that first began extracting oil from avocados, introducing first local then overseas customers to the delights of avocado oil. As Grove avocado oil became available in supermarkets New Zealand consumers were early adopters, finding the new oil goes perfectly with nutritious, modern Kiwi food. Avocado oil retains the nutritional benefits of the avocado fruit, explains Greenlees. Grove’s single cold press technique protects the healthy fatty acids, vitamins and minerals in avocado oil, which is then encased in dark glass bottle, keeping out the light and oxygen and retaining the quality of the oil. This tender treatment maintains the fresh taste of pure avocado, providing the ultimate taste for salads. The taste has been quickly adopted by consumers overseas, attracted by its health benefits and sophisticated taste. But now New Zealand foodies are using the oil in new and different ways, with lime, garlic, chilli or lemon pepper-infused avocado oils now available.

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The new versions – ‘avocado with an edge’ – are being used as the basis of innovative sauces, salsas, aioli and mayonnaise. Meanwhile, the original classic extra virgin avocado oil is increasingly an ingredient in desserts, cakes and sweet dishes where a delicate oil or butter taste is required. Avocado oil comes into its own in dishes where a subtle, sophisticated taste is needed, for example where the taste of olive oil would be too prominent, says Greenlees. “New Zealand is leading the way to new dishes and flavour combinations based on the magical taste of Grove avocado oil.”

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Grove Avocado Oil: supplying premium avocado oil to NZ food lovers Products: Extra Virgin Avocado Oil, Lime, Garlic, Chilli, and Lemon Pepper Avocado Oil Supplying: Countdown, New World, Pak’n’ Save, specialist stores Key attributes: Flavourful, high nutrient, single extraction, cold-press avocado oil Home base: Tauranga, New Zealand

Contact us today! 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

+64 (9) 274 7014 sales@imonitor.co.nz www.imonitor.co.nz

FMCG BUSINESS - SEPTEMBER 2019

THIRST QUENCHERS News and trends in the fast growing Drinks category.

Wellness drinks, kombuchas, flavoured water and plant-based milks continue to drive sales in New Zealand, but what else is new and noteworthy? Schweppes has recently launched 1783 in New Zealand, a new range of premium mixers set to impress discerning drinkers with sophisticated flavour profiles and a chic bottle design. The 1783 range has been crafted by leading UK mixologists, with natural flavours to deliver the perfect pairing with the finest spirits. The range includes a Crisp Tonic Water, with a clean, crisp bitterness, a Golden Ginger Ale with a soft, refreshing flavour and a hint of ginger. Two distinct tonic flavours, Salty Lemon and Quenching Cucumber offer their own unique flavour profiles, perfect for mixing with a range of different spirits. “Our exciting new Schweppes 1783 range combines the perfect mix of carbonation and balanced taste, with natural flavours. Schweppes has worked with UK mixologists and drinks experts to create this distinguished range of premium mixers, designed for discerning drinkers 18

FMCG BUSINESS - SEPTEMBER 2019

who enjoy discovering new flavour combinations,” said Schweppes New Zealand Brand Manager Gina Beck. As the creator of the world’s first carbonated soft drink, Schweppes was founded on innovation by Jacob Schweppe, who invented and launched his carbonated water in 1783. Paying homage to the brand’s founding year, the company continues to inspire and delight with this exciting new range of premium mixers. Carbonation is the most important aspect of any mixer, triggering the olfactory system (or sense of smell) to maximise flavour. Schweppes is renowned for its superior effervescence and balanced flavour profile, with an obsession for bubbles that are high in number, small and longer lasting, to deliver an enhanced taste that lasts. The Schweppes 1783 range features a new bottle design and branding, paying homage to the brands heritage and reflecting the elegance of the beverage inside. Schweppes has also created an innovative menu of recipes so curious drinkers can experiment with new flavour combinations and creations using their favourite beverages.

[ category insights ] Cool Tea Mocktails Ti Ora’s unique collection of New Zealand made teas has relaunched with a fresh new look. Meaning ‘tea of wellbeing’ in Māori, Ti Ora makes its teas with highquality natural ingredients you can see. The entire Ti Ora collection is lovingly blended right here in New Zealand, and served in silky, pyramid teabags for quality brewing. Continuing the theme of experimenting with new drinks recipes, cool Ti Ora tea mocktails are perfect for designated drivers and all those who prefer a nonalcoholic, refreshing drink.

Age restriction for energy drinks Did you know that customers will now need to be 16 years or older to buy energy drinks at Countdown’s 180 supermarkets nationwide? The decision comes in response to growing concerns raised by health leaders about the impact increased consumption of highsugar, highly-caffeinated energy drinks is having on New Zealand children. There are 74 energy drink products in a range of brands or pack sizes sold across Countdown’s supermarkets, which will now be sold to customers 16 years or older. The Australia New Zealand Food Standard defines an energy drink as a ‘Non-alcoholic, water-based flavoured beverage which contains caffeine and may contain carbohydrates, amino acids, vitamins and other substances (including other foods) for the purpose of enhancing mental performance’. Supermarkets in the UK have also recently introduced an age-restriction on energy drinks and Celebrity Chef Jamie Oliver spent the last three years campaigning for the cause.

Global trends In news from the USA, PepsiCo is testing sales of its Aquafina water in aluminum cans as the company moves to reduce its use of virgin plastic, which hasn’t been recycled. Though canned water is a relatively new trend in retail, PepsiCo isn’t the first company to step into the market. The makers of Vita Coco have also launched canned water Ever & Ever as an easily recyclable option for consumers. But PepsiCo isn’t stopping at aluminum packaging. Not only will the company begin selling canned water alongside its bottled Aquafina at some locations, but the food and beverage retailer also said its LIFEWTR brand will be packaged in 100% recycled plastic and that its sparkling water will no longer be available in plastic bottles. PepsiCo said the changes will all go into effect in

Ti Ora Tea mocktails are perfect for those who prefer a nonalcoholic, refreshing drink.

2020. The company predicts the move will eliminate more than 8,000 metric tons of new plastic and about 11,000 metric tons of greenhouse gas emissions. “Tackling plastic waste is one of my top priorities and I take this challenge personally,” said PepsiCo CEO Ramon Laguarta. “We are doing our part to address the issue head on by reducing, recycling and reinventing our packaging to make it more sustainable, and we won’t stop until we live in a world where plastics are renewed and reused.”

Cultural changes Research shows that young consumers are drinking less alcohol. A report in the medical journal BMC Public Health and carried out by University College London showed that the proportion of 16 to 24-year-olds who do not drink alcohol has increased from 18% in 2005 to 29% in 2015. The research showed a fall in drinking in North America, the UK and elsewhere in Europe. Dr Linda Ng Fat, lead author of the study, says the findings suggest cultural change was leading to a reduction in drinking, and that health reasons could also be a factor.

“RESEARCH SHOWS THAT YOUNG CONSUMERS ARE DRINKING LESS ALCOHOL.”

Source: NIELSEN SCANTRACK Total Supermarkets - MAT w/e 11/08/2019 Val Sales

Val % Chg YA

T. Cold Drinks (includes shelf stable)

823,511,157

4.7%

T. Carbonated Beverages

354,654,141

2.9%

T. Sports Energy and Other RTDs

143,711,050

2.3%

T. Fruit Juice And Drinks

118,765,972

3.0%

T. Water

100,678,729

1.5%

T. Non Dairy Milk Drinks

63,224,727

10.8%

T. UHT Flavoured Milk

34,045,850

60.1%

T. RTD Tea

8,430,687

-1.5%

FMCG Business produces a monthly snapshot of category news and highlights, based on information from participating clients and Nielsen data available at time of print. To showcase your products in upcoming category reports, please contact trubanowski@intermedianz.co.nz. FMCG BUSINESS - SEPTEMBER 2019

HEALTH & WELLNESS

Discover natural skincare products and new trends to watch.

NZ brand essano™ is leading the natural skincare category and taking on multinational brands. It all started with a washing machine pump and a credit card. That’s how the Kiwi innovators Shane and AJ formed the partnership that would lead to the launch of essano™ in 2013, a breakthrough range of skincare harnessing the power of Rosehip. “Fast forward five years and NZ’s #1 Natural Skincare brand* is now sold in over 6,000 stores around the world at a rate of 1 product every 10 seconds, and looks set to take the #2 position within total skincare in NZ supermarkets* ahead of L’Oreal and Olay,” says Caroline Clarke, GM of Marketing at Mix Limited. This is timely recognition as the brand has just launched its first TVC ‘the essano™ effect’, highlighting the proven results of its award-winning Rosehip range. “The essano effect is effortless effectiveness when it comes to skincare, empowering people to make fearless choices by arming them with honest, uncomplicated solutions in a category that trades in confusion,” says Clarke. “A home team winning against multinationals, who have deep pockets and global brand recognition, isn’t just a good news story for a brand in a highly competitive market, it’s a good news story for the NZ economy, the Kiwis it employs and the skin of hundreds of thousands of NZ woman,” says Clarke. “Proudly crafted in NZ, essano is proof that effective skincare can be accessible, affordable and backed by a product promise that ensure results without harm to us, our planet or our furry friends.” *IRI NZ Grocery, Value Sales, MAT 14/07/2019

FMCG BUSINESS - SEPTEMBER 2019

[ category insights ]

What’s trending Conscious consumerism has propelled the natural health & wellness market to unprecedented heights. As the conversation about sustainability and packaging continues, product evolutions, such as New Zealand’s first plastic free, locally made water wipe from Earth Smart, are totally on trend. New Earth Smart Aqua Wipes are biodegradable and fragrance free - set to drive sales in the baby category. Look out also for new cotton tips with paper stems, or other sustainable stems, as plastic-stem cotton tips are phased out at supermarkets. Hemp oil, vegan and cruelty-free ingredients are among some of the big trends in skincare and cosmetics right now, while new products specifically designed to protect us from air pollution are taking overseas’ markets by storm.

Glow Lab - bringing new customers to the beauty aisle Less than two years in the market and worth $9m1, Glow Lab’s unique position – combining nature with scientifically proven active ingredients to deliver natural skincare that works, is a winning formula, says Fenella Brown, Glow Lab Brand Manager. Source: NIELSEN SCANTRACK Total Supermarkets - MAT w/e 11/08/2019 Val Sales

Val % Chg YA

T. Skincare

245,024,740

1.3%

T. Total Personal Wash

104,054,069

3.5%

T. Total Defined Facial

75,222,766

2.3%

T. Total Cosmetics

15,276,089

5.0%

She explains: “The brand has tapped into growing consumer demand for professional grade ingredients, a trend that has seen a +10.4% growth in the highend pharmacy skincare market2. “Glow Lab is leading the way by not only driving category value sales, through trade up from mainstream brands, they are also initiating channel switch from pharmacy/department stores, bringing new customers into the supermarket beauty aisle.” Their latest launch; Glow Lab Age Renew, the first natural anti-ageing skincare range into supermarkets a testament to this. True innovation that capitalises on two key growth segments in skincare – natural and anti-ageing. Two new additions to their original Glow Lab skincare range are starting to appear in supermarkets now, an SPF15 Facial Moisturiser (75ml) and Energising Eye Mask. Formulated to provide longlasting hydration the new SPF15 Facial Moisturiser provides critical broad-spectrum protection, without the greasy after feel. While leveraging the success of Glow Lab sheet masks, the new Vitamin C enriched Energising Eye Mask, another first in the natural segment, is an under eye sheet mask formulated to instantly hydrate and leave tired eyes looking bright and refreshed. “On track to becoming no.1 natural personal care brand in NZ Grocery, Glow Lab continues to expand its footprint across skincare, haircare and personal wash, with over 60 products launched in just 24 months, and more in the pipeline,” says Brown. 1 IRI MarketEdge NZ Grocery, MAT To 28/07/19 2 IRI MarketEdge Pharmacy, MAT To 21/04/19

[ category insights ]

ECO-FRIENDLY PIONEERS

New environmental homecare products arrive in store. The Earthwise story began more than 50 years ago in a garden shed in Orini, Waikato, long before many had considered the environmental impact of chemical-based consumer products. “Perfected over decades; Earthwise is now one of New Zealand’s most trusted natural brands and is the number one environmental cleaning brand in New Zealand grocery, with 47.2% value share of total environmental cleaners*,” says Emma Clarke, Brand Manager. Earthwise has environmental products across household cleaning categories - including laundry, dish and cleaning. “Our products use quality plant-based ingredients and are free from harsh chemicals, they are also biodegradable, grey water and septic tank safe. We have the largest range of household cleaning and toilet products certified by Environmental Choice, whereby products must meet stringent independent criteria. Environmental Choice recognises genuine moves made by manufacturers to reduce the environmental impact of their products. Our products provide efficacy to consumers with our toilet cleaners, spray cleaners and disinfectant killing 99% of germs,” says Clarke. She adds: “We’ve recently launched a 4-Litre environmental laundry liquid within New Zealand supermarkets - the largest and best value offer in the environmental cleaning category, to drive category value and profit. September will see the introduction of a 4-kilogram laundry powder to complement the large value range. Consumers are looking for value in larger format pack sizes and an increased preference for natural, chemical free products that are kind to the environment. “We’ve also moved our household cleaning bottles to be made from a minimum of 75% recycled plastic - sourced from milk, water and juice bottles. We know we can’t tackle the plastic issue alone and are proud to be part of the ground swell of change,” says Jamie Peters, Managing Director. *Source: IRI Total NZ Grocery MAT Value Sales to 28/07/19.

“SEPTEMBER WILL SEE THE INTRODUCTION OF A 4-KILOGRAM LAUNDRY POWDER TO COMPLEMENT THE LARGE VALUE RANGE.” JAMIE PETERS, EARTHWISE MANAGING DIRECTOR Source: NIELSEN SCANTRACK Total Supermarkets - MAT w/e 11/08/2019 T. Cleaning & Homecare Products

119,205,993

0.2%

T. Total Household Cleaners

70,668,314

0.6%

T. Total Toilet Cleaners

25,836,619

0.9%

T. Total Aircare

22,701,060

-1.8%

FMCG BUSINESS - SEPTEMBER 2019

BACK IN MARCH 1996 a new little company was started – Rothford International Ltd., with just one client, two guys and a long way to go. Over the years we grew, the name morphed into Rothfords and we became part of the national FMCG fabric, covering the country from Kaitaia to Invercargill. From attending the SIAL Trade Fair in Paris (winning the SIAL D’Or for Best New Product in New Zealand and Best Meat Product in the world with our one and only client back in 1998) to being voted Best Fine Food Brokerage in the 2017 NZ Business Awards, Rothfords has a proud track record. Rothfords has always focussed on being the best – not the biggest, just the best – with excellence our primary goal and always trying to go the extra mile for our clients. Anyway, enough of all the normal agency rhetoric – you can easily find that stuff when you read adverts from other SMA brokerages. It’s time to be real, so we are changing the name of Rothfords to reflect what we are really all about.

No crap, no excuses and people who give it their absolute all for our chosen partners, 100% in, no excuses! From April we will become SURGE SMC – Rothford Sales & Marketing Crew. Our focus will remain on excellence and sales momentum – the Surge. Surge SMC is about honest people, honest hard work and no excuses – 100% in. Surge SMC starts with excellence in bespoke systems and operations, excellence in experience, culture and skilled staff. These things are the wind in our sails, and we pride ourselves in being the Surge behind our clients’ brands, helping breathe life into their growth. What does SMC mean? – nothing and everything: Surge SMC – sales & marketing crew Surge SMC – shelf management crew Surge SMC – social media crew Surge SMC – solutions making crew Surge SMC – so many cool people in the crew

Which do you need and which are you not getting at present?

We don’t pretend to be the right company for everyone and not all companies are the right ones for us – we have a strength in short shelf life, chilled, frozen and on-trend health and wellbeing foods. While others claim to know these areas well . . . who knows – maybe, but perhaps not. If you are sick of poor results and lame excuses, perhaps you should have a chat and together we might be the right fit going forward. If you want us on your boat as a reliable, trusted and experienced crew – give us a call and let’s talk.

SURGE SMC – Rothford Sales & Marketing Crew

Call Tony Trilford 0800 949 333 or visit our website www.foodbrokers.co.nz

[ good business ]

HIGH-TECH FOUR SQUARE FOR DARFIELD

A new Four Square supermarket in Darfield, which promises to be one of the most high-tech in the country, opened its doors in August. It’s a flagship among Four Squares in New Zealand, as it’s the first to roll out new ESL (electronic shelf labels), LED lighting and two selfcheckouts for tech-savvy customers. The new build kicked off in December last year, and just nine months

later is ready to welcome its first customers. At 1200m² the new store is twice the size of the previous store and has over 70 carparks located right outside. The new store not only offers more space but more products including an abundance of fresh produce, and all the favourite departments: meat, seafood, bakery, deli as well as Lotto. The new range also includes hot and cold food-to-go for locals and tourists looking for convenient and delicious takeout meals. Store owners Kelvin and Delwyn Taege say the business has been in their family for over 39 years, and they are excited to begin their next chapter in a ‘brand new’ modern store. “While it’s sad to see the old building and a lot of history go, we know the community is going to absolutely love this new full-service store,” Kelvin says. “I think they will particularly enjoy the ease of the new self-check outs when they need to pop in for a few fresh products, or even a hot meal on the go. These are in addition to the regular checkout stations.”

SOLAR PLANTS FOR SUPERMARKET GIANT Coles and global energy company Metka EGN have signed a 10-year agreement that will see three solar power plants built in New South Wales, which will supply more than 220 GW hours of electricity into the national electricity grid. In the first deal of its kind to be made by a major Australian retailer, Coles will purchase more than 70% of the electricity generated by the photovoltaic plants — equating to 10% of Coles’ national electricity usage. The solar plants will save more than 180,000 tonnes of greenhouse gas emissions every year or the equivalent of the annual emissions from 83,000 cars. Coles Group CEO Steven Cain said the increased use of renewable energy was a major part of the company’s commitment to be the most sustainable supermarket in Australia: “We are thrilled that with this agreement, Coles can make a significant contribution to the growth of renewable energy supply in Australia, as well as to the communities we serve. “We have already made changes throughout our business to use energy more efficiently, which has enabled us to reduce our greenhouse gas emissions by 4% over the past financial year and more than 30% since 2009, despite growing our store network. “Over the past two financial years alone we have invested more than $40 million in energy efficiency measures including upgrading all store lighting to LED[s] by the end of 2019 and the installation of solar panels on 30 stores.” Plant construction is scheduled to begin in September 2019, with energy-generation operations anticipated to commence in July 2020. 24

FMCG BUSINESS - SEPTEMBER 2019

[ good business ]

THE FUTURE IS CHILLED Countdown has welcomed the first of five refrigerated electric delivery trucks to its online shopping service, which will eliminate approximately 135,000 kg of CO2 emissions annually. The new trucks are part of Countdown’s overall drive to lower carbon emissions across its business, which have been steadily decreasing over the last three years. Each truck is expected to be able to drive around 220 kilometres before recharging. The first truck, located at Countdown St Johns, will service customers in St John’s, Greenlane, Remuera, Stonefields and St Heliers. Over the coming months, four more refrigerated online delivery electric trucks will roll out in Auckland’s Grey Lynn, Newtown in Wellington, Hornby in Christchurch and Queenstown. Kiri Hannifin, Countdown’s General Manager Corporate Kiri Hannifin, Countdown’s Affairs, Safety and Sustainability, says reducing emissions is an General Manager Corporate Affairs, Safety and Sustainability important focus for both Countdown and their customers as businesses and consumers become more aware of the climate crisis. “In the last three years we’ve reduced carbon emissions across our business by almost 15%. We believe that electric vehicles will play a really important part of New Zealand’s lower energy future and by investing in electric delivery trucks we’re not only generating fewer emissions, but also helping to future-proof our growing online business.” A point of difference to other major retailers is that each of the new trucks has a refrigerated unit, including a separate freezer compartment, to ensure food safety and quality, particularly in warmer weather. As well as introducing the five electric online delivery trucks, last year Countdown introduced an electric charging station at its support office and launched 15 electric vehicle charging stations in five of their Hamilton stores, offering the service for free.

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ARATAKI HONEY GOES BACK TO THE FUTURE Arataki Honey is celebrating 75 years in New Zealand with a big focus on reducing its carbon footprint. The family-owned business has launched a 1kg cardboard honey pot of its top selling Clover Blend Honey along with investing in solar power at its Havelock North production site in Hawke’s Bay. Arataki’s new cardboard pot is a step back in time, to when honey was sold in tins or waxcoated cardboard pots. Nearly forty years on and cardboard is back looking smarter than ever in the new blue striped Clover Blend 1kg pack. Producing the new pot has required some capital investment and it is currently much slower to pack, but the Arataki team believes there is a far greater upside in being able to offer consumers an alternative to plastic.

INCREASE EFFICIENCY

FMCG BUSINESS - SEPTEMBER 2019

[ sustainability ]

LET’S TALK RUBBISH!

Sustainable packaging, recycling and waste management are hot topics. A climate emergency is happening, landfills are overloaded, and Certified compostable the recycling industry is in crisis says Richard Fine, Founder and Independent third party certification is crucial to validate environmental Sustainability Director BioPak. claims and provide assurance to composters, business owners and “Yet our collective consumption habits aren’t slowing down. In New consumers that if correctly disposed of, our products will close the loop Zealand alone, more than one million tonnes of plant matter and food and return valuable nutrients back into the soil. scraps are sent to landfills each year, representing about 320 kilograms of Loren Walker from Reclaim says: “Reclaim requires any packaging organic matter for each one of us,” says Fine. we collect as part of our compostable recycling service to be certified Industrial composting presents a huge opportunity to prevent food commercially compostable. These certifications ensure that the waste and compostable packaging from ending up in landfills where it compostable packaging can sufficiently decompose in a commercial otherwise releases methane – a greenhouse gas 80 times more potent composting facility within the required timeframes and that no than CO2, which contributes to climate change detrimental contaminants enter the compost (source). There is however a lot of confusion stream. By collecting BioPak compostable “COMPOSTABLE surrounding how it actually all works, and if packaging, we are ensuring that it is turned PACKAGING IS PART OF packaging is actually being composted. into nutrient compost, rather than going “Let’s set the record straight. Compostable to landfill where it would release the potent THE SOLUTION.” packaging is part of the solution,” says Fine. gas, methane. Our plantRICHARD FINE, FOUNDER greenhouse “Composting is nature’s recycling solution based compostable foodservice packaging AND SUSTAINABILITY for organic materials - compostable packaging is certified to Australian and European enables the diversion of food scraps and food compost standards. We are also in the midst DIRECTOR BIOPAK contaminated packaging from landfill which of including the compost Seedling and reduces the environmental impact of methane Home Compost logo on our products to emissions. In New Zealand, there are 11 industrial composting facilities help consumers select the right disposal path for our products – truly that accept food scraps and certified compostable packaging.” supporting the circular economy.” 26

FMCG BUSINESS - SEPTEMBER 2019

[ sustainability ] You can help “We encourage collaboration from government, local councils, waste management companies, recyclers, brand owners, business owners and consumers to reduce waste to landfill. Through our organic recycling program, the BioPak Compost Service, industrial composting facilities in New Zealand process organic waste, food scraps, and compostable packaging transforming these materials into nutrientrich soil over eight weeks,” says Fine. Visit www.biopak.co.nz for more information.

Leaders in sustainability

“EARTHWISE GROUP LTD HAS MOVED THE LARGEST RANGE OF GROCERY HOUSEHOLD CLEANING PRODUCTS, TO LOCALLY MANUFACTURED BOTTLES USING A MINIMUM OF 75% RECYCLED PLASTIC.”

Earthwise has pioneered eco-friendly cleaning in New Zealand for over 50 years and continues to look for ways to reduce the impact on the environment. Managing Director Jamie Peters explains: “We use plant-based ingredients that are grey water and septic tank safe. These ingredients are also biodegradable, breaking down into mineral and plant material, which is better for the environment. “Environmental Choice is New Zealand’s highest independent accreditation eco label and recognises genuine moves made by manufacturers to reduce the environmental impact of their products. We are proud to have the largest range of household cleaning and toilet products that are environmentally certified. “We take a holistic view on wastage and recycling

FMCG BUSINESS - SEPTEMBER 2019

- recently removing the plastic bag from our laundry powder packaging. Shipper boxes are recyclable and made from recycled materials. We follow good environmental practices and have a firm process to manage the level of wastage and waste streams in our Auckland-based factory. “Our bottles are already recyclable, but we’ve taken this a step further by moving our household cleaning range to bottles made from recycled plastic, sourced from milk, water and juice bottles. We pledged our support for the New Zealand Plastic Packaging Declaration to have 100% of packaging recyclable, reusable or compostable by 2025 or earlier, and also joined the New Plastics Economy Global Commitment. “Earthwise Group Ltd has moved the largest range of Grocery household cleaning products, to locally manufactured bottles using a minimum of 75% recycled plastic. Since October 2018, we have reused and diverted approximately 132 tonnes of plastic from landfill (estimated to reach 200 tonnes by end of 2019)*. “It’s important we manage the full life cycle of plastic, not just the end of the process, so that all plastic can be reused instead of sent to landfill,” says Peters. *Source: ALTO Packaging Ltd, changeover from virgin material to Rhdpe / rPET materials

[ FGC ]

THE BIG PACKAGING CHALLENGE Today we live in a throwaway society. Every day we use stuff that can’t be re-used or recycled, so we throw it away. It’s much different to my grandmother’s generation. She saved everything, even flour bags. What couldn’t be fed to the chooks or burnt on the fire amounted to a few cans that were buried at the back of the farm. The recent issue of single-use plastic shopping bags was almost minor compared to the rest of the stuff consumers send to landfill. There, our refuse rots or breaks down or seeps or expels chemicals. Some of it just sits there forever. We don’t even know how much we’re generating because only 45 of our 426 landfills are required to report on how much they receive and what it is. The Ministry for the Environment says those 45 take around 3.3 million tonnes a year, and we can only imagine what the real number is when the remaining 381 are taken into account. And it’s getting worse. Recycle NZ estimates that with current population trends and without serious moves to cut waste, the amount we put into landfills will nearly double within 10 years. FMCG manufacturers are well aware consumer packaging is a significant contributor. It’s everywhere because it’s practical and convenient. Just about everything we consume, from food to the mobile devices we continually update, comes in plastic, glass, paper, or aluminium packaging. Every year we send around 350,000 tonnes to landfill, recycling just 58%. We also dump about 250,000 tonnes of plastic. Recycle NZ says around three quarters of our waste is recoverable, and for me that’s the real opportunity for change. So what are some solutions? FMCG companies have done great work around recycling and recyclable packaging in recent years. Most put a lot of time and money into improving manufacturing operations and the effect their products have on the environment. Despite all this, only a minority of waste is diverted from landfill. That’s why it was interesting to see the Government announcing a different tack on the issue. It issued proposals for developing product stewardship schemes that would put the responsibility for waste onto manufacturers, importers, retailers and users, “rather than on communities, councils, neighbourhoods and nature”. It proposes to do this for tyres, e-waste,

refrigerants, agrichemicals, farm plastics, packaging, plastics, and batteries. The important group they’ve left off is consumers, who will need to play a big part of changing behaviour. Of particular relevance to the FMCG industry, the document includes all beverage containers of less than 4 litres, and single-use plastic packaging (retail or wholesale) made of plastics 1-7, which are not designed to be refilled. The Food and Grocery Council supports the effort and principle, but how feasible is it? The reality is New Zealand doesn’t have the technology to recycle most of this material and we are far from achieving anything like it without a huge boost in collection and recycling capacity. We can recycle plastic grade 1 but I’m told there is virtually no processing here for grades 2-7, which are the more difficult ones. And we can’t currently recycle batteries here. Companies will have to go to great lengths to collect them and send them to China or Europe for processing. Where’s the cost benefit in that? I just wonder if the proposals fully recognise the extent of the problem, current New Zealand technology and capacity, and what’s involved in making a meaningful improvement. FGC will be making a submission on the issue but it’s going to take a lot of work and cooperation and some serious investment to get anywhere.

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

“RECYCLE NZ SAYS AROUND THREE QUARTERS OF OUR WASTE IS RECOVERABLE.”

FMCG BUSINESS - SEPTEMBER 2019

[ legal advice ]

DON’T TAKE THE BAIT - ADVERTISING AND THE FAIR TRADING ACT

James Stewart is a Director at Steindle Williams Legal specialising in business and commercial law. swlegal.co.nz

It is common practise to advertise goods or services at a low price and/or with a stated discount. Often this will be reinforced by noting the goods or services are “limited stock” or “while stocks last”. Such statements in advertising are a useful marketing tool because they can create urgency for the consumer. However suppliers must be careful when advertising in this way as if care is not taken such advertising may be considered bait advertising under the Fair Trading Act 1986 (“FTA”). Bait advertising under the FTA is the making of false or misleading representations about the availability of advertised goods or services and is unlawful. Suppliers breaching the bait advertising provisions of the FTA may find themselves fined. Any representation in advertising that is made about availability should be truthful and not misleading. If no representation as to availability is made it will likely be considered that the goods or services should be supplied for a reasonable period of time and in reasonable quantities. Therefore, prior to advertising, suppliers should ensure that the advertisement has a stated period

“ANY REPRESENTATION IN ADVERTISING THAT IS MADE ABOUT AVAILABILITY SHOULD BE TRUTHFUL AND NOT MISLEADING.”

FMCG BUSINESS - SEPTEMBER 2019

of acceptance and that during such period the supplier will have reasonable quantities of the good or service available. What is reasonable will be dependent on the nature of the advertisement, the likely demand and the market in which the supplier is operating. It is therefore important that any advertisement qualifies the availability of the offer clearly and in a way visible to the consumer. Statements such as ‘while stocks last’ may not be sufficient for example if the business never had reasonable stock available to meet the demand at that price. Any limits on an offer should be clearly stated including any expiry of the offer. These statements should be clearly visible and not “buried in the small print”. If despite a business’s best intentions there is no stock available for an accepting customer then businesses should strongly consider whether they should have a “rain check” or backorder system. Provided the goods can be supplied within a reasonable time after acceptance this will likely act as a defence against a breach of the bait advertising provisions of the FTA.

Join IRI at the 2019 State of the Industry Join IRI at 2019’s State of the Industry focusing on the changes & trends driving the FMCG industry today and the near future. Learn from market leading experts about the areas of opportunity for brands and retailers to grow in 2020 and beyond. Hear from: • Paul Hinds, Managing Director Asia Pacific, IRI who will share his experience working with leading UK retailers • Nick Tuffley, Chief Economist, ASB Bank, who will provide a view of the economy in the coming year • Vicky Herring, Head of Retail, IRI, presenting the 2019 State of the Industry • Alistair Leathwood, CCO Asia Pacific IRI, who will provide an update on the Australian retail market.

Wednesday, 13th November 2019 Vodafone Events Centre, Auckland 770 Great South Rd, Wiri, Manukau 2104 Registrations Open 30th August For more information email: ask@iriworldwide.co.nz

[ events ]

CELEBRATE NZ CHEESE MONTH Taste of Auckland is back at Queens Wharf from 31 October until 3 November.

WHAT’S ON SEPTEMBER 3 ASIAFRUIT CONGRESS Hong Kong www.asiafruitcongress.com 4-6 ASIA FRUIT LOGISTICA Hong Kong https://www.asiafruitlogistica. com/ 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 5-9 ANUGA Cologne, Germany http://www.anuga.com/

1-7 CHOCOLATE WEEK New Zealand nationwide www.nzchocolateweek.co.nz 18 WORLD CHEESE AWARDS Bergamo, Italy 23 NZ FOOD AWARDS Powered by Massey University Winners announced https://www.foodawards.co.nz/ competition-info 31 OCTOBER-3 NOVEMBER TASTE OF AUCKLAND Queens Wharf, Auckland, NZ www.tasteofauckland.co.nz

NOVEMBER 6-8 FGC CONFERENCE Melbourne, Australia https://www.nzfgc-conference. com/

5-6 CHOCOLATE & COFFEE SHOW The Cloud, Auckland, NZ www.chocolatecoffeeshow.co.nz

15 32

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 - SEPTEMBER 2019

New Zealanders are buying better quality cheeses as they explore new specialities, including locally-made feta, halloumi and Parmesan. Speciality cheese is the big winner with Nielsen Supermarket Sales MAT to 14 July 2019, showing specialty cheese has grown by 7.3% in value and volume compared to the corresponding time last year. The same data shows the total value of sales of cheese in NZ are up by 2.9% compared with the same time the previous year, with a value growth of 6.3% vs one year ago. The figures were released by the New Zealand Specialist Cheesemakers Association (NZSCA), which hosts NZ Cheese Month every October to celebrate the hard work and dedication of the country’s cheesemakers. NZSCA Chair Neil Willman says the sales figures are clear proof that New Zealanders are embracing the local cheese industry and getting more adventurous in their tastes as they do so. “It’s a reflection of the change to a more international style of eating. New Zealanders are wanting to explore different tastes and flavours and our cheesemakers are offering a broader range of cheeses to meet this demand.” “As well as making the traditional cheddar we’ve grown up loving, NZSCA members are making speciality cheeses which haven’t been seen before in NZ - Mexican cheeses like Cajeta and Oaxaca, or Italian favourites such as mozzarella, ricotta and mascarpone and interestingly other Italian styles which are less familiar in New Zealand such as; Scamorza, Stracciatella and Stracchino.” Neil says it’s wonderful to see the growth in sales of NZ-made cheese – and this October he’s encouraging Kiwis to put even more NZ-made cheese on their plates! In a first for Cheese Month, the NZSCA is working with Barker’s to find Kiwis’ favourite NZ cheese company. Voting will be promoted via CheeseloversNZ Facebook and Barker’s of Geraldine social media. To keep up to date with cheese tasting events and experiences during NZ Cheese Month check out the CheeseloversNZ Facebook page.

The countdown

IS ON!

With a range of stalls and stands starting at just $395.00 + GST for two days in front of over 7,000 food lovers, The Chocolate and Coffee Show is one of the most cost effective marketing options for your brand.

5â&#x20AC;&#x201C;6 October 2019 The Cloud, Auckland

Tickets for MASTERCLASSES and our all-new VIP LOUNGE are already selling fast!

Now in its 6th year, the show is considered one of Aucklandâ&#x20AC;&#x2122;s most loved events dedicated to showcasing talents and success of artisan, boutique and craft business. The consumer audience skews 75% to Female with a 25-54 age group and an average show spend of $75.00 per person. So you can focus your efforts on presenting your products to a targeted and interested audience. Any related offerings of indulgence are welcome at the show including tea, milks, liquor through to cakes, cupcakes, bakery and homewares. You will also receive a free Exhibitor Profile at www.chocolatecoffeeshow.co.nz and free social post to our 14,000+ social audience.

To secure your space and find out more about The Chocolate and Coffee Show 2019 contact Brigid DiMattina bri@intermedianz.co.nz | 029 230 1372

www.chocolatecoffeeshow.co.nz

[ events ]

FMCG BUSINESS SUMMIT A BIG SUCCESS

A presentation by FGC Chief Executive Katherine Rich

Keynote speaker Cassie Roma, Head of Content Marketing – The Warehouse Group

NZME Chief Digital Officer Laura Maxwell

The first FMCG Business Marketing Summit was held on 21 August in Auckland with 170 industry members in attendance. Some flew in from as far as Melbourne, Wellington, Nelson and Palmerston North to join the FMCG Business team for the day. Marketers, manufacturers, retailers and business owners gained valuable insights from the presentations by some of the biggest marketing names in Australasia, including Ogilvy Chief Creative Officer Regan Grafton, NZME Chief Digital Officer Laura Maxwell, and many more. FGC Chief Executive Katherine Rich shared excellent advice on labelling, Health Star ratings, marketing successes and failures, while Vicky Herring from IRI gave an overview of innovative NPDs that drive sales in New Zealand. 34

FMCG BUSINESS - SEPTEMBER 2019

Matt Grantham from Onfire Design

Cassie Roma Head of Content Marketing – The Warehouse Group, Matt Grantham from Onfire Design, Lew Bentley from energi, and Michele Teague (of Kmart, Air NZ, Telecom and Woolworths fame) also shared their insights and helpful tips for FMCG marketers. A full-day of inspiring talks, innovative ideas and engaging conversations, the FMCG Business Marketing Summit was designed to inform, inspire, and provide ideas to take brands to the next level and an opportunity for networking. FMCG Business Head of Content Tamara Rubanowski says: “We were thrilled with the support from the industry and humbled by the positive feedback after the event, with many attendees asking: ‘when is the next FMCG Business Summit?’… Watch this space!”

Out & About

Eryn Hooper fro m Million Meter Streams and Lu from Lewis Ro ad announced cy Sorensen a crowdfunding help the Wair campaign to oa River resto ration project.

Peter Island, Chris Quin with CEO Foodstuffs North named ‘Store of – ra aku Pap ld Wor Lynch, owner of New ffs Excellence Awards. the Year’ at the Foodstu

The Bluebird Foods team at their Red Rock Deli launch (L to R) Dan Kerin Dickey, Patricia DaSilva, Anna Dempsey, Ali Hamza

SNAP & WIN!

Engeman,

At the Bakels NZ Supreme Pie Awards (L to R): FMCG Business Head of Content Tama ra Rubanowski and Radio Broadcaster Alison Leon ard.

Has your team moved to new premises, or been part of a fun event, great harvest, or promotional activity? Send us your favourite snapshots to be in to win a copy of Branded Culture (RRP $39.99 - published by Imagination Press) - essential reading to decode the new rules of building brands and brand success. In Branded Culture, as well as setting up the framework for achieving remarkable results, Steve Bayliss offers practical tools, techniques and workshop templates.

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

FMCG BUSINESS - SEPTEMBER 2019

SHOUT NEW ZEALAND’S LARGEST LIQUOR AUDIENCE

THE

SEPTEMBER 2019 | www.theshout.co.nz

NEW ZEALAND

A NEW TWIST IN THE OLD COACH ROAD

ON TREND ROSÉ AND PINOT NOIR NEW ZEALAND DRAUGHT

INTRODUCING CAVALIER, GREEN GINGER WINE. BREWED USING PREMIUM MARLBOROUGH GRAPES AND ZESTY NATURAL GINGER. Cavalier Green Ginger Wine is forging a new path, making wine of a different kind. The Cavaliers of today are those of us compelled to go against the grain. We challenge conventions not because weâ&#x20AC;&#x2122;ve got beef, but because we can. #Cavaliergreenginger www.allanscott.com

WHISKY MAC 45ml Cavalier Green Wine 45ml Whisk(e)y Pour ingredients into a short glass. Fill with ice. Stir to taste.

contents

The Shout Editor, Charlotte Cowan

MAKING A CHANGE

When it comes to what we drink, we all have our favourites. Mixing it up can be difficult when you’re used to reaching for a classic Sauv or crisp lager. But sometimes change can be a good thing. On this month’s cover we are featuring Old Coach Road – a staple in supermarkets and liquor stores for many years and a classic, affordable brand. But do you know who makes Old Coach Road? If you said no, you wouldn’t be alone. Old Coach Road is under the umbrella of the Seifried Family and they have decided to change up the name and labels of Old Coach Road to make that well-known. For more, head to pg 7. We’re also featuring some new innovations that we think you should try this month. Blush has released the world’s first boysenberry gin, made using fresh Nelson boysenberries, and Josh Scott (son of Allan) has reinvented a classic with his green ginger wine. For other must-try classics and new releases, check out pg 8. But what about making a change back to a past classic? John Oszajca takes a look at New Zealand Draught on pg 16-17 – it’s the beer that Kiwis love to hate, but John thinks maybe you should take another look. Don’t miss our October issue where we’ll be sharing top picks for Chardonnay, more new releases hitting shelves and the best Pale Ales around. Cheers!

september 2019

4 INDUSTRY NEWS AND INSIGHTS 7 A FRESH LOOK FOR OLD COACH ROAD

Anna Seifried explains the new branding on a classic range

8 ON TREND

This month’s must-try classics and new releases

10 NIELSEN UK: WINE BOXES AND CANS COME OF AGE

International insights

12 ROSÉ AND PINOT NOIR Tasting notes from Cameron Douglas MS

16 NZ DRAUGHT

John Oszajca takes a look at the country’s most popular unpopular beer

SHOUT

NEW ZEALAND’S LARGEST LIQUOR AUDIENCE

THE

SEPTEMBER 2019 | www.theshout.co.nz

NEW ZEALAND

A NEW TWIST IN THE OLD COACH ROAD

ON TREND ROSÉ AND PINOT NOIR NEW ZEALAND DRAUGHT

COVER STAR:

OLD COACH ROAD BY THE SEIFRIED FAMILY

Since the 1970s, Austrian-born Hermann Seifried and his Kiwi wife Agnes have produced wine in New Zealand’s sunshine capital, Nelson. But what some don’t know is that the Seifried family also produces the Old Coach Road range. Now Old Coach Road has a brand new look to bring the wines back into the Seifried embrace. For more, head to pg 7.

EDITOR’S PICKS 1 CAVALIER – GREEN GINGER WINE BY JOSH SCOTT The newest release in winemaker Josh Scott’s repertoire, this green ginger wine is a reinvention of a classic. Made using premium Marlborough grapes co-fermented with zesty natural ginger, Cavalier is just one of our must-tries this month. For more, take a look at pg 8.

PUBLISHED BY The Intermedia Group Ltd 505 Rosebank Road, Avondale Auckland, 1026, New Zealand ph: 021 361 136 Managing Director-Publisher Dale Spencer dspencer@intermedianz.co.nz Editor Charlotte Cowan ccowan@intermedianz.co.nz ph 021 774 080 Sales Director Jaqueline Freeman 021 286 7600 jfreeman@intermedianz.co.nz

2 JOHANNESHOF CELLARS MARLBOROUGH PINOT NOIR ROSÉ 2017 Strawberry in colour with aromas of ripe strawberries, berry, melon and peach, this single vineyard Rosé is dry, complex and the perfect accompaniment to grilled seafood and salads. For more ravishing Rosés, take a look at Cameron Douglas MS’ tasting notes on pgs 12-13. 3 CLOS MARGUERITE MARLBOROUGH PINOT NOIR 2015 Scoring a massive 97 points from Cameron Douglas MS in this month’s tastings, this Pinot Noir from Clos Marguerite is a wonderful combination of sweet, ripe berry fruit with velvet tannins and a warm, almost savoury hint. Head to pgs 14-15 to take a look at our other Pinot picks this month. For more amazing liquor news (and even a few giveaways), make sure you follow us on Instagram and Facebook @theshoutnz and sign up to our fortnightly eNewsletter at www.theshout.co.nz.

THE SHOUT NZ – SEPTEMBER 2019 3

news

New World offers students judging scholarship This year’s associate judges, Kristy New World has partnered Marsden and Nichkan Sayasith with Nelson Marlborough Institute of Technology (NMIT), to offer two top Viticulture and Winemaking students the opportunity to be selected as associate judges in the New World Wine Awards each year. The new associates will spend their time tasting and learning alongside the senior judges in the annual awards, who bring hundreds of years of experience to the table. Jim Harré, Chair of Judges for the awards for the past 12 years, says the opportunity will provide a fantastic, but very demanding, learning opportunity for the budding wine experts. “Tasting beautiful wines all day sounds like the best job in the world – but it’s challenging work when you are set to assess up to 120 glasses each day, over three full days of judging,” he says. Pam Wood, Programme Lead Specialist – Viticulture and Winemaking, says NMIT is thrilled to be able to partner with New World for the New World Wine Awards. “NMIT is committed to delivering a qualification that produces work-ready graduates, who are well connected to the Viticulture and Winemaking industry and are able to apply their theoretical knowledge to their work,” she says. “Being in the heart of New Zealand’s wine country, and with relationships such as this which put our students in touch with experts from across New Zealand and the world, NMIT is the perfect position to enable this industry-linked learning.”

Key dates announced for the New Zealand Beer Awards The Brewers Guild of New Zealand has announced key dates for this year’s New Zealand Beer Awards. Now in its 13th year, the awards recognise excellence in the production of beer and the in the broader brewing industry. Winners of the 2019 Brewers Guild of NZ Beer Awards will be announced at the BREWNZ’19 gala dinner in Wellington in late October. For more information, visit brewersguild.org.nz/awards/. Key dates are as follows: • Entries close: 20 September 2019 • Physical entry deadline: 25 September 2019 • Beer and cider judging: 10-11 October 2019 • Awards presentation gala: 19 October 2019 • Feedback to entrants: 20 November 2019 4 THE SHOUT NZ – SEPTEMBER 2019

WHAT’S ON September 9-15 WSET Wine Education Week Auckland www.foodandwine.co.nz September 17-23 Organic Wine Week www.facebook.com/pg/ OrganicWinegrowersNZ/events/ September 30-October 2 NZ International Wine Show 2019 judging www.nziws.co.nz October 5-6 THE CHOCOLATE & COFFEE SHOW The Cloud, Auckland www.chocolatecoffeeshow.co.nz October 6 MATAKANA FOOD & WINE FESTIVAL Matakana www.oysterfestmatakana.co.nz/ October 17-19 BREWNZ 2019 Wellington www.brewersguild.org.nz

October 19 INTERNATIONAL GIN & TONIC DAY October 25 NZ INTERNATIONAL WINE SHOW AWARDS DINNER Auckland www.nziws.co.nz November 16 THE NEW ZEALAND CIDER FESTIVAL Nelson www.nzciderfestival.com/

industry insights

Creatures of the night New Zealand has a great hospitality scene, it’s compact, diverse and innovative. We can take international influences and trends, make them our own and move them to a whole new place. We see it in beer too - with new styles and experimental flavours around every corner. Much of this innovation and change are what keep consumers coming back. But we know that peoples time and dollar are discretionary. When they spend this time and money is discretionary too. With most people spending their days working, time and money are often spent in the Night-Time Economy (NTE). Though definitions differ, the NTE generally begins at 6pm and ends at 6am. So how do we maximise the economic and social benefit of this? Are we even trying? A recent report from the New Zealand Initiative looked at how New Zealand compared to international examples and how it has changed, especially since the introduction of the Sale and Supply of Alcohol Act and restrictions on drink driving increased. The report found that since these regulatory changes, we have moved our focus to one of restricting activity and viewing what occurs at night towards minimising harm. We have lost our positive management of what is a great asset to our culture. The report goes on to look at international examples of how we can better manage this asset. Because we all know how well the restrictions in Sydney worked.

Dylan Firth Executive Director, Brewers Association of New Zealand

Be it through appointing a Night Mayor, who is an active discussion partner for all stakeholder of the NTE, or like Melbourne, managing our planning rules which ensure any urban development works within the entertainment precinct, ultimately to reduce NIMBY-ism. I recently looked at some card spend data for on-premise venues (bars, hotels, restaurants and taverns) over the last 10 years which showed, as expected, that there has been overall growth in spend since the GFC. But the ratio has changed. In Wellington, for example, in 2009, 55% of spend was from 6pm-6am. This has now flipped on its head, to 55% of spend during the day. The turning point? When the alcohol and drink driving laws changed. If we don’t manage our NTE with a positive lens we might see it reduce and loose what we know is a vital part of New Zealand’s social fabric and an economic asset.

200 Years of New Zealand Wine September 25, 2019 marks 200 years since the first planting of grapevines in New Zealand. From the humble beginnings of a vine planted in Northland, the New Zealand wine industry has grown to become a $1.83 billion export earner, with an international reputation for premium, diverse and sustainable wines. Reverend Samuel Marsden, Chaplain to New South Wales (1765-1838), records September 25, 1819 as the day he planted a vine in the rich grounds of the Stone Store, Kerikeri in the Bay of Islands. These pioneering vines were the very first to be planted into New Zealand soils, with New Zealand being one of very few countries in the world where the exact date of the planting of the first vines is known, making our story unique on the world stage. The first recorded wine was from James Busby in 1830s. Busby, the Crown’s Resident in New Zealand, lived in what is now called the Treaty House at the Treaty Grounds in Waitangi. James Busby was the architect of the Treaty of Waitangi and is regarded as the first winemaker in New Zealand. Throughout the 19th and early 20th century, a significant number of European immigrants came to New Zealand and set up vineyards in different regions. They each contributed to the early establishment of the diverse wine regions of New Zealand. The New Zealand wine industry

Amber Silvester New Zealand Winegrowers Communications Manager

today consists of over 700 wineries and more than 600 grape growers, with the growing success of this industry depending strongly on the commitment and passion of the people behind it. Since the 1990s, there has been a definite change in grape varieties that we see planted around our regions. Sauvignon Blanc is now the most widely planted variety, accounting for 76% of total production, followed by Pinot Noir and Chardonnay. New Zealand Winegrowers will be marking the 200-year anniversary with an industry event in Northland, including a ceremonial re-planting at the historic Stone Store, followed by a regional wine tasting and dinner on the Waitangi Treaty Grounds. In his diary, Marsden prophesied: “New Zealand promises to be very favourable to the vine, as far as I can judge at present of the nature of the soil and climate. Should the vine succeed, it will prove of vast importance in this part of the globe.” His prediction has been brilliantly fulfilled.

THE SHOUT NZ – SEPTEMBER 2019 5

orders@parrotdog.co.nz | 04 384 8077 | parrotdog.co.nz

on the cover

fresh lookFOR

OLD COACH ROAD n an increasingly crowded wine market, the need to have shelf appeal as well as glass appeal, is nothing new. As consumers, we have all been known to choose a product based on its appearance. Now, one of New Zealand’s most well-known wine brands, Old Coach Road, has a brand new look. Crafted by pioneering winegrowers, the Seifried family, Old Coach Road first came to life in the early ’90s in response to changes in New Zealand retail licensing, which allowed wine to be sold in supermarkets from 1990. The range was introduced as the company’s ‘everyday, supermarket wine’, which would be kept separate from the family’s main brand, Seifried. Anna Seifried says that as Old Coach Road increased in popularity, visitors to the winery’s cellar door were admitting that they loved Old Coach Road, but didn’t know it was part of Seifried Estate. “This really made us wonder why our two main brands were so disassociated,” she says. “Our customers have always shown great loyalty, but it turns out that most didn’t actually know where the wine was coming from!” The new branding brings the wine back under the Seifried embrace, where it is now referred to as Old Coach Road by the Seifried Family. The Old Coach Road style has always been about bright, fruit-driven wines, reflective of the soil and sunshine of Nelson, with value-formoney in mind. There is a focus on purity of the varietal, where oak and malolactic fermentation are kept to a minimum.

The clean lines on the new branding give a fresh and sophisticated look to emphasise this. “The new look keeps some of the traditional feel but also offers a shelf presence, which I’m sure will attract a wider audience in that crowded $10-$14 price range,” says Anna. With the new branding, there is more focus on sustainable winegrowing, which is regarded as a desirable aspect to a wine brand. As an early adopter of sustainable winegrowing in New Zealand, the Seifried family is proud to extend this onto the new label. “Without question the Seifried family is one the most important modern pioneer family producers in New Zealand and Nelson,” says Cameron Douglas MS. “Every wine released reflects the Seifried commitment to expression of variety, quality and exceptional value.” Today, Old Coach Road offers 11 wines in total, including the newest addition - the Old Coach Road Nelson Rosé. Now also available in 17 international markets, including Russia, Old Coach Road is becoming a familiar brand around the world. For more, visit www.seifried.co.nz.

OLD COACH ROAD BY THE SEIFRIED FAMILY NELSON SAUVIGNON BLANC 2019 A lovely bouquet of Sauvignon Blanc with a core signature of passionfruit and peach, red apple and silty, stony, earthy qualities. Not forced and not too loud. Fruity and refreshingly crisp on the palate, with flavours that reflect the nose. A gentle spice layer and lengthy finish, well made and ready to drink over summer 2020 and through 2021. Points 90 Tasting note by Cameron Douglas MS

THE SHOUT NZ – SEPTEMBER 2019 7

on shelf

STEINLAGER PURE ULTRA New Steinlager Pure Ultra delivers a smooth and refreshing taste with 50% less carbs than Steinlager Pure 5% and just 107 calories per bottle. Made with no additives or preservatives, the beer is made using Steinlager’s specially commissioned Pacific Jade hops to create a clean, natural, fresh flavour. RRP $24.99 for a 12-pack (4.6% ABV) www.lionco.com ⊳ CAVALIER – GREEN GINGER WINE BY JOSH SCOTT With a dominant aroma of dark Manuka honey and spiced apricot pudding, and a bold warming ginger on the palate, this craft wine by Josh Scott dives right down your throat and leaves you with a lingering spicy sensation. Designed to drink neat or as an addition to your favourite cocktail. RRP $18.00 for 750ml (14% ABV) Distributor: Hancocks Wine, Spirits & Beer Merchants Phone: (09) 361 8480 www.allanscott.com

GARAGE PROJECT: THE ART OF BEER BY PETE GILLESPIE This one-of-a-kind book celebrates the art, the creativity and the craft of the world’s most experimental brewery, New Zealand’s own Garage Project. Featuring the original sketches and finished art for the beers you love, plus insights into the creative process and talented people who made them, this book is the perfect gift for craft beer lovers. RRP $42.00 www.penguin.co.nz

d n e r t n

o BLUSH BOYSENBERRY GIN Fresh boysenberries from Nelson provide bright berry bursts in this world-first gin from Blush. The boysenberries allow the Juniper and citrus to work away in the background, providing a beautiful finish. Try over ice and top up with your favourite mixer… or maybe try pouring it over some ice cream? RRP $85.00 for 700ml (37.5% ABV) www.blushgin.co.nz

8 THE SHOUT NZ – SEPTEMBER 2019

ry cla

’s must-t is month

d new ssics an

SPY VALLEY SINGLE ESTATE MARLBOROUGH CHARDONNAY 2016 With a lingering experience of citrus, nectarine and white peach with a softly balanced acid structure, this refreshing and elegant Chardonnay has subtle toasty and creamy notes from the oak barrel influence. Handpicked and fermented naturally for 11 months in French oak barrels, this Chardonnay can be aged for three to six years to provide a mix of fruit freshness and aging complexity. RRP $24.99 (13% ABV) Distributor: Red + White Cellar Phone: (03) 572 7088 www.spyvalleywine.co.nz ⊳ SPY VALLEY SINGLE ESTATE MARLBOROUGH PINOT NOIR 2016 An alluring aroma of vibrant red fruits, cocoa powder and dried spice, this Pinot Noir is long and supple on the palate - fruit focused with a finely grained tannin structure. Red berry flavours with a hint of toasty oak. Handpicked and fermented naturally for 11 months in French oak barrels. RRP $32.99 (13% ABV) Distributor: Red + White Cellar Phone: (03) 572 7088 www.spyvalleywine.co.nz

releases

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

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international insights

wine boxes

NIELSEN UK:

AND CANS COME OF AGE

few years ago, while living in the US, I was introduced to Rosé wine in a can at a summer picnic. Being British, I set aside my preconceived notions, politely accepted the drink and sipped away. I had always believed that a great wine could only ever come in a bottle, but I was pleasantly surprised by the canned offering. It offered a great taste that kept the wine cooler for longer, particularly on a hot summer day. Fast forward a few years, and we’re starting to see greater format evolution within the wine market. In the off-premise trade, the wine category is the largest contributor to alcohol sales in the UK, accounting for over a third of the category’s value; however, over the past three years, wine has lost share to other, fastergrowing categories. Over the past two years, wine has, to a certain extent, been overshadowed by excitement in neighboring categories: the resurgence of gin, the boom within craft beer and the summer successes of ready-to-drink premixed cans. Nowadays, however, wine is starting to gain traction in the off trade in two specific formats, which are driving excitement and helping to expand usage occasions: bag in a box and cans.

BAG IN A BOX Bag in a box is not new to the off trade wine market: it’s currently worth £264 million and holds 5% share of off trade wine. Though this format has been stable over the last few years, it’s beginning to shake off some of the negative quality perceptions that may have previously been held against it. In the process, it’s evolving into an offering that caters to well-known and loved brands, comes in a bigger format and stays fresher for longer than your average bottle. The average price of a bag in a box in the off trade market is around 25% cheaper than your average 75cl bottle, which is another great selling point to attract wine buyers, all while catering for the growing sharing occasions, whether at home or outdoors. Shoppers are now purchasing the bag 10 THE SHOUT NZ – SEPTEMBER 2019

in a box format more often than ever, and when they buy, they’re trading up to more premium offerings now available. Though shoppers only tend to put one bag in a box in their basket, we know they’re enjoying it as the number of shoppers who go back to buy it again is also on the rise. And while you might think the bag in a box caters primarily to larger households, it’s actually the smaller households that are purchasing this format the most often, with 78% of spend coming from households with two or fewer members. Thanks to the increased distribution of bag in a box products and a steady stream of new brand offerings, this format is seeing a resurgence, particularly among the critical 45 year+ shopper group, which holds the majority of the FMCG spending power. CANNED WINE Canned wine has also gained traction over the last year. Although this format has been around for a few years, sales accelerated last summer and during the Christmas period, up 155% (+£1.5m) last year and now total £2.4m. Retailers are responding by increasing the in-store visibility and profile of these products, especially the more impulse-driven retailers, where this format fits the on-thego, convenient missions of shoppers. While you might think the canned wine format is primarily targeted to a new type of wine shopper, we see that canned wine shoppers are very aligned with the average wine shopper: they tend to come from affluent, mature, two-person households. They’re not Millenials, contrary to what some might expect. With this insight, we can really begin to see how format expansion can encourage new usage occasions that break away from the norm while still appealing to core wine shopper. Though the can format has yet to reach 1% share of the UK off trade wine market,

it has notable growth potential. In the US, the canned wine market has been around since early 2014 and is now worth $70 million. Last year alone, canned wine sales were up 70%. Many of the UK’s current alcohol trends are those that have evolved or picked up after being tested in the US. With the average price per litre in a can being higher than an average 75cl bottle, this format is one to ensure you have available on shelf, to help drive value back into the wine category and to ensure it can maintain its No. 1 foothold in the off trade. The bag in box and can formats are both key to re-engaging with existing wine shoppers. They can also bring excitement back to the category and attract new shoppers. They also do a great job of satisfying outdoor, on-thego occasions, especially in the hotter months where shoppers look for chilled, convenient formats. With another scorcher of a summer forecast, brands and retailers should be thinking about how they can tap into this trend and provide alternate wine formats to off trade alcohol shoppers and engage them to continue to buy these even through the cooler months.

Gemma Cooper

By Gemma Cooper – Nielsen Client Business Partner. For more insights from Nielsen, visit www.nielsen.com

é s ro BY

ith 30 different Rosés lined up for this month’s tasting, it’s easy to see the full spectrum of colours that this style of wine covers. From delicate pink, to velvet red, apricot and burnt orange, the full range is here. Fortunately, there is no standard colour palette by which you assess Rosé, so it’s all down to aroma, taste, texture and finish. Rosé is perhaps best drunk upon release and for around a year, maybe two, after. The key reason for this suggestion is freshness, purity of fruit, crunchy texture and balance. These attributes can fade quickly after a year, challenging the balance and finish. Some examples, however, will develop some interesting complexities over time, with the slightly more tannic, and lees textured examples, even some with a little oak, able to deliver some irresistible flavours. I have noticed and tasted many Rosé wines in the last two decades and the trend - at least in the last five years - is towards much dryer wines, which is great. Not bone-dry, just dryer - with more fruit concentration and texture. This means that the fruit flavours and textures have to be more harmonious and in balance. The net result of this trend and consumer favour is that these modern expressions of Rosé make great ‘stand-alone’ wines – no food needed. The dryer styles also make a great aperitif option. Rosés with slightly more tannin and texture work well with entrée dishes, such as baked eggplant with miso, earthy flavoured soups or tuna sashimi. There are also fuller, richer styles of Rosé available, with the best examples having a deeper colour, more tannin and complexity. These wines shouldn’t be mistaken for other styles of wine from which Rosé can come - such as Pinot Noir, Merlot or the Cabernets - they are simply pushing the boundaries of style. For example, a Rosé using wild ferment, longer skin contact time, extended lees contact, some older barrel use and master blending can be a remarkably tasty wine and great with main courses such as baked salmon, a vegan vegetable based casserole or cheese soufflé. Rosé can be produced from any red grape variety, including Pinot Noir (the most popular in New Zealand), Merlot, Tempranillo, Syrah, Cabernet Sauvignon and Cabernet Franc among the more widely used.

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Cameron Douglas is New Zealand’s first and only Master Sommelier. An experienced wine writer, commentator, judge, reviewer, presenter and consultant, he is academically in charge of the Wine and Beverage Programme at AUT University in Auckland and is Patron of the New Zealand Sommeliers and Wine Professionals Association. Douglas consults to a variety of establishments, taking care of their wine lists, wine and food pairings, and staff training matters and he currently serves on the Board of Directors for the Court of Master Sommeliers Americas. 12 THE SHOUT NZ – SEPTEMBER 2019

tasting notes 3

JOHANNESHOF CELLARS MARLBOROUGH PINOT NOIR ROSÉ 2017 An intriguing attractive bouquet with a mix of minerality, light red fruits and complexity. Dry, fine and fruity on the palate with a mix of flavours and textures from red pear and red apple, some old strawberry, red tea, medium+ acidity and mineral notes. Lengthy finish, balanced and well made. Points 93 RRP $25.00 Distributor: Co Pilot Distributors Phone: (03) 573 7035 www.johanneshof.co.nz

CLOS MARGUERITE MARLBOROUGH ROSÉ 2018 A lovely bouquet of Rosé with an Old World and New World blend of aromas. Saffron and peach, autumn leaves, quince and strawberry, roses and violets. Crisp, dry and luscious on the palate with textures of silk and cream, flavours of red berries, leading to a lengthy, charming and balanced finish. A very modern expression packed with flavour and personality. Drink now and through summer 2021. Points 92 RRP $30.00 Distributor: Clos Marguerite Phone: (021) 415 692 www.closmarguerite.co.nz

SEIFRIED NELSON PINOT NOIR ROSÉ 2019 Raspberry and cherry red in colour this vibrant looking Rosé over delivers on aromas and flavours of raspberry and plum, crushed cherries and cold stone minerality. Crisp refreshing acidity and texture, a core of fruit and lengthy warm fruited finish. Drink now and through 2021. Points 91 RRP $18.00 Distributor: Co Pilot Distributors (North Island) and Seifried Estate (South Island) Phone: 027 297 0137 (North Island) or 021 533 890 (South Island) www.seifried.co.nz

AKARUA RUA CENTRAL OTAGO PINOT ROSÉ 2019 Translucent ruby red appearance with aromas of raspberry and dark red cherry, violets and rose. Juicy, fresh and very fruity with flavours of raspberry and cherry, plenty of red apple, flowers and fine fruit tannins. A lovely stand-alone drink with plenty of food pairing opportunities. Lovely balance and finish, drink now and through 2021. Points 90 RRP $23.00 Distributor: Hancocks Wine, Beer & Spirits Merchants Phone: (03) 445 0897 www.akarua.com

MAIN DIVIDE NORTH CANTERBURY ROSÉ 2018 Seductive scents of red rose and apricot, red cherry and a touch of strawberry. Just dry on the palate with a fresh lively texture and flavours of cherry, apple, apricot tea and strawberry. A lovely wine, balanced and well made with a decent finish. Drink now and through 2021. Points 90 RRP $21.00 Distributor: EuroVintage Phone: (03) 314 6869 www.pegasusbay.com

HÃHÃ HAWKE’S BAY ROSÉ 2019 Vibrant, fresh and fruity bouquet of Rosé. Aromas of melon and red cherry, red apple and plum. Tense, firm, crisp, crunchy texture, youthful and fruity on the palate. Lots to enjoy and savour, with flavours of raspberry, red berries and melon. Plenty of acidity, balanced and well made. Drink now and through 2021. Points 90 RRP $17.99 Distributor: Hãhã Wine Company Ltd Phone: (06) 833 7814 www.hahawine.co.nz

Wines are scored out of 100 points and are listed in no particular order. Numbers are not indicative of a ranking.

THE SHOUT NZ – SEPTEMBER 2019 13

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inot Noir is, handsdown, the most sold red wine in New Zealand. Why? Because it has an easy to identify aroma and flavour package of light red fruit flavours, a silky texture, tannins that do not disrupt or attack the palate and a lengthy, often irresistible, finish. Pinot Noir can be floral and pretty, it can be deeply complex and beguiling, it can hold your attention with its poise and tension, it can also be boring and uninteresting. Pinot is an extremely food-friendly wine – it easily weaves through the flavours and textures of many dishes without disrupting the core of the food. Some ingredients and Pinot don’t get along at all, for example heavy cream, chilli spices and very bitter greens such as kale. Pinot Noir is available at many different price points, with some under $20.00 retail. It is also one of those wines where price does seem to align with quality. While there is no guarantee of quality at any price point, there is often a correlation between the two and sales of certain brands would indicate this to be true. With most regions in New Zealand producing Pinot Noir there is plenty of choice. Don’t forget that regions like Auckland, Hawke’s Bay and Gisborne produce some delicious Pinot Noir, as well as all wine regions in the South Island. There are many influences on the smell, taste and textures Pinot Noir – type of farming, soil type is a significant player, access to moisture and cropping levels. In the winery, there are important considerations, for example: the ratio of whole bunch versus de-stemmed, cold soak, natural or inoculated ferments (or both), racking from tank to barrel or barrel to barrel, the type, size and age of oak used. To discover the true aromas and taste of Pinot Noir, I suggest buying examples from around New Zealand sharing and discussing each wine with friends. 14 THE SHOUT NZ – SEPTEMBER 2019

CLOS MARGUERITE MARLBOROUGH PINOT NOIR 2015 Engaging, complex and layered bouquet with aromas of soil, smoke, wood and fruit. Complex, textured, layered and detailed on the palate with flavours of red berries and oak, fine chalky tannins, medium+(ish) acidity, brown spices and sweetness of wood. A long complex finish. Simply delicious. Drink now and through 2026+. Points 97 RRP $58.00 Distributor: Clos Marguerite Phone: (021) 415 692 www.closmarguerite.co.nz w

LOVEBLOCK CENTRAL OTAGO PINOT NOIR 2018 An enticing sweet oak scented bouquet with aromas of vanilla and crushed clove then strawberry and dark cherry, a mix of bracken and undergrowth and some toasty oak spice moments. Delicious on the palate with a warm and generous package of flavours and textures - sweet red berry fruits and roses, fine tannins and medium+ acidity. Balanced and well made with a lengthy finish. Drink now and through 2025. Points 95 RRP $31.99 Distributor: Hancocks Wine, Spirits & Beer Merchants Phone: (09) 365 1471 www.loveblockwine.com

JOHANNESHOF CELLARS MAYBERN SINGLE VINEYARDS MARLBOROUGH RESERVE PINOT NOIR 2016 Complex, youthful and alluring aromas of Pinot Noir with a mineral and earth led bouquet showing off sweet earth old roses then fruits of cherry and red apple, button mushroom, some savoury moments then fine oak. Fruit and oak mirrored on the palate with firm tannins and ripe acidity. Lengthy finish, well made and complex. Decant for service or continue to cellar with best drinking from 2021 through 2030. Points 95 RRP $35.00 Distributor: Co Pilot Distributors Phone: (03) 573 7035 www.johanneshof.co.nz

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tasting notes SCOTT BASE RESERVE CENTRAL OTAGO PINOT NOIR 2017 Focused, complex and inviting bouquet of roasted dark berries, wood smoke and sweet baking spices. Dark raspberry, ripe cherry, sweet wild thyme and oak. Dry, firm and youthful with flavours that match the nose, complex, fruity and dry. Mealy chalky tannins from oak and fruit, medium+ acidity and lengthy finish. Best drinking from 2020 through 2026. Points 95 RRP $45.00 Distributor: Scott Base Vineyards Phone: (03) 572 9054 www.scottbasevineyards.co.nz

AKARUA BANNOCKBURN CENTRAL OTAGO PINOT NOIR 2018 Focused, fruity, youthful and varietal aromas of Pinot. A core of dark cherry and raspberry aromas, dark red roses and sweet vanilla oak. A dry wine on the palate with a core of red berry fruit flavours, firm youthful texture, ripe tannins, medium+ acidity, just enough oak and lengthy persistent finish. A youthful wine that will develop slowly over the next two to three years. Best drinking 2021 through 2026. Points 94 RRP $45.00 Distributor: Hancocks Wine, Beer & Spirits Merchants Phone: (03) 445 0897 www.akarua.com

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PEGASUS BAY NORTH CANTERBURY PINOT NOIR 2016 Attractive, varietal, complex, focused and fruity bouquet of Pinot Noir with aromas of toasty spicy oak, dark berries, dark velvet rose and clove spice. Dry, fruity and intense flavours of dark cherry, plum, tart raspberry and firm youthful tannins. A freshness, concentration and texture laden palate appeal. Drink now and through 2025. Points 94 RRP $50.00 Distributor: EuroVintage Phone: (03) 314 6869 www.pegasusbay.com

WOOING TREE BEETLEJUICE CENTRAL OTAGO PINOT NOIR 2018 Vibrant, fruity, varietal and enticing bouquet of Pinot Noir. Aromas and flavours of dark raspberries and cherries, thyme and dried

herbs, an earthy stony layer and forward brown spices of oak. Dry, fleshy, fruity and youthful with tannins and acidity leading texture messages before flavour. Well made and ready to enjoy, but will also cellar well. Best from late 2020 through 2025. Points 94 RRP $28.00 Distributor: Wooing Tree Phone: (03) 445 4142 www.wooingtree.co.nz TIKI KORO WAIPARA PINOT NOIR 2016 Very attractive bouquet with enticing aromas of silty soils, oak and dark spices then fruit aromas of ripe dark cherry and baked raspberry. On the palate - a dry wine with flavours that reflect the nose accompanied by firm ripe tannins and balancing acidity. A textured, ripe and balanced wine with bottle age showing the advantages of leaving wine in cellar to mature. This wine still needs time with best drinking from late 2020 through 2024. Points 94 RRP $34.99 Distributor: Federal Merchants & Co Phone: (03) 326 5551 www.tikiwine.com

AKARUA 25 STEPS CENTRAL OTAGO PINOT NOIR 2018 Varietal, fruity and specific bouquet of Pinot Noir with an abundance red cherry, raspberry and red apple skin aromas. Closely followed by clove, vanilla and mild toasty oak scents. Dry on the palate with flavours that mirror the nose, medium+ acidity, fine chalky tannins and stony minerality. Balanced and well made, decent length and finish. Drink now and through 2025. Points 93 RRP $36.00 Distributor: Hancocks Wine, Spirits & Beer Merchants Phone: (03) 445 0897 www.akarua.com

ALLAN SCOTT ESTATE BLACK LABEL MARLBOROUGH PINOT NOIR 2018 Really lovely bouquet of Pinot Noir with a mineral and fruit core of aromas showing off dark cherry and raspberry, some dried herb and toasty wood moments. Tense, firm, dry and youthful on the palate with tart fruits of cherry and raspberry, sweet oak and medium+ acidity. Youthful, fresh

and lively, will find its balanced late 2020 and drink nicely to 2026. Points 93 RRP $26.00 Distributor: Hancocks Wine, Spirit & Beer Merchants Phone: (03) 572 9054 www.allanscott.com

TIKI KORO CENTRAL OTAGO PINOT NOIR

2018 Attractive bouquet with a core of savoury minerals and ried herb then dark cherry and raspberry, Some red apple and plum notes. Dark spices of vanilla and clove. Dry with the savory core and dried herb leading, textures of firm youthful tannins and plenty of acidity. Drinking nicely now recommended with food. Best from early 2020 through 2025. Points 93 RRP $34.99 Distributor: Federal Merchants & Co Phone: (03) 326 5551 www.tikiwine.com SACRED HILL SINGLE VINEYARD MARLBOROUGH PINOT NOIR 2018 Fine, fruity, varietal, alluring and attractive bouquet of Pinot. Flavours reflect the nose with red cherry, plum and strawberry, fine chalky tannin and medium+ acid textures. Balanced and well made with a medium+ finish. Drink now and through 2024. Points 92 RRP $27.99 Distributor: Quench Collective Ltd Phone: (06) 879 8760 www.sacredhill.com

SACRED HILL RESERVE MARLBOROUGH PINOT NOIR 2018 Fine, fruity and varietal bouquet of Pinot with aromas and flavours of strawberry and red cherry, some red apple and light toasty baking spices. Dry, lighter weight and fine on the palate. Flavours reflect the nose with a light chalky texture and fresh acid line. Balanced, fresh, lively and well made. Drink now and through 2024. Points 90 RRP $21.99 Distributor: Quench Collective Ltd Phone: (06) 879 8760 www.sacredhill.com

THE SHOUT NZ – SEPTEMBER 2019 15

t h g

u a r d NEW

D N A ZEAL

Your guide to the country’s most popular unpopular beer style

For a beer style that is responsible for more sales-by-volume in New Zealand than any other style, New Zealand Draught certainly has an underwhelming reputation. In fact, the Beer Judge Certification Program (BJCP) – the internationally recognised cataloguer of beer styles – doesn’t even acknowledge New Zealand Draught as an established style. A surprising omission, given that even the infinitely younger and less established style ‘New Zealand Pilsner’ has made the BJCP’s ‘provisional style’ list. One can almost understand a certain degree of craft beer snobbery when it comes to the way we view many popular styles. Especially when it comes to the overtly bland American Light Lagers of the world, which are (arguably) designed to be as pale and flavourless as possible. But New Zealand Draught is a completely different beer, and though it would still be fair to say that it is not exactly a challenging style, it is by no means a flavourless brew. Moreover, it is a true beer style that evolved over time due to conditions specific to New Zealand, which – in this author’s opinion – makes it a unique Kiwi beer style that is worthy of a certain appreciation. The actual origins of the style are a 16 THE SHOUT NZ – SEPTEMBER 2019

bit murky, and there are a few different origin stories floating about, including one belief that the New Zealand Draught is a descendent of the English Mild. However, what seems most likely is that New Zealand Draught began as the much stronger and more flavourful Burton Ale and was slowly stripped of its malt flavour and bitterness until it became the beer that we know it as today. To understand New Zealand Draught, we must first look at what we know about some of New Zealand’s most historical brews. Speights is New Zealand’s oldest brewery, and we know that in the early 20th century, they were known for producing a Burton-style ale that was lauded as being a “beer as fine as those from England”. In the 1965 book The Froth-Blowers Manual, Pat Lawler recalls: “In the early part of the twentieth century there was a time when beer drinkers were divided into two camps of intense rivalry, those who drank Speights and those who didn’t. I remember the time when it was held in awe as a mighty and mystic brew, that’s alcoholic strength was considerable. At first I did not like it. It was too bitter for my young untried palate. When I made a grimace the barmaid told me that I should have it as a Shandy. So next time I

John Oszajca To contact John Oszajca regarding beer features or samples, please email him at john@newzealandbrewer.co.nz

beer feature called for a Speights, I asked for a glass of lemonade with it. Only too soon however, I grew to hate the sweetish, destroying flavour of lemonade, and always called for a Speights straight”. However, austerity measures during both World Wars, as well as increasing pressures from the temperance movement, drove the alcoholic strength of New Zealand’s beers down to approximately 4% ABV. The same pressures resulted in New Zealand’s hotel bars closing at 6pm, which led to the infamous ‘six o’clock swill’. Six o’clock swill was a one-hour period between the end of the work day and each bar’s closing time, in which hard working Kiwis would rush to the bar and consume as much beer as possible within this narrow span of time. This restriction was first adopted in New Zealand in 1917 and was not abolished until 1967. The practise would have a profound effect on Kiwi drinking culture, as well as New Zealand Draught. By reducing the amount of malt used to make beer, you don’t just reduce the amount of alcohol in the beer; you also reduce the amount of flavour, body, and colour. As such, many New Zealand breweries began adding caramel for colouring, as well as sugar to increase body. Both are practises that are still common today. And with New Zealand’s drinkers forced to throw back as many glasses of beer as possible during this short hour-long drinking session, a smooth, easy drinking beer with a low degree of bitterness and malt flavour was much preferred over other darker, maltier, and/or more bitter options. The advent of the uniquely Kiwi brewing process known as ‘continuous fermentation’ and the eventual addition of lager yeast would lock in the surprisingly consistent parameters for the style. Thus, the modern New Zealand Draught was born. To this day, many New Zealand Draught beer drinkers embrace the style because it was the beer that they developed a taste for all those years ago. Others have perhaps inherited brand loyalty from their fathers. The style also remains popular with many hard-working and sports-loving New Zealanders, for whom the beer’s inherent quaffability makes for a perfect thirst-quencher after a long second half of rugby or a hard day on the farm. When it comes to the different brands of New Zealand Draught, preference often has more to do with region and brand loyalty than the minute differences of flavour between each brand, as they

“MANY NEW ZEALAND DRAUGHT BEER DRINKERS EMBRACE THE STYLE BECAUSE IT WAS THE BEER THAT THEY DEVELOPED A TASTE FOR ALL THOSE YEARS AGO.” are all quite similar beers. That said, there are certainly differences between them and no two New Zealand Draughts are exactly alike. Let us take a look at three of the most popular brands of New Zealand Draught and the unique qualities that set them apart. SPEIGHT’S GOLD MEDAL ALE Despite the ‘ale’ in its name, Speights Gold Medal Ale is in fact a lager, as virtually all modern New Zealand Draughts are. The story of this beer – or so the bottle reads – begins back in 1880 when New Zealand’s oldest brewery entered their flagship ale (at that time it almost certainly was an ale) into the Melbourne Exhibition where it won two gold medals, earning it the new name of Speight’s Gold Medal Ale. This was likely a Burton Ale-like beer more akin to the one described in Pat Lawler’s Froth Blower’s Manual. Today, Speight’s is a lovely version of the style, and certainly one of the standards. A crystal clear, light copper beer with a tight white head, the aroma offers subdued notes of honey, bread crust, and very subtle herbal and floral hop aromas. While it’s fair to say that the flavours found in any New Zealand Draught are on the subtle side, notes of soda crackers, bread crust, hay, and a hint of sulphur can be found in Speight’s Gold Medal Ale. While the beer has the characteristically sweet finish one expects in the style, what sets it apart from other examples (at least for this author), is that it has a greater degree of balance between malt sweetness and hops than other examples of the style. DB DRAUGHT While it’s not clear which brewery first coined the term New Zealand Draught, Dominion Breweries has certainly played an important part in the growth and

enduring popularity of the style with their DB Draught and their advent of the continuous fermentation process, which is still used to produce DB Draught to this day. Slightly darker than Speights and Lion Red, DB Draught is an equally crystal clear, copper beer with the tight white head typical of the style. DB Draught has relatively subdued malt and hop flavours, however its fruity esters, caramel notes, and characteristically sweet finish make it stand out from the pack. It’s easy to see how it earned its reputation as a working-man’s beer. LION RED Said to have first been brewed in 1907 by Lion Brewery, the beer was later christened Lion Red by the public due to its red label. Lion Breweries responded by officially changing the beer’s name to Lion Red in the 1980s. In a pint of Lion Red you can expect to find the clarity, copper colour, tight white head, and the signature sweet finish typically found in other examples of the style. In the aroma you will find pleasant notes of biscuits as well subtle grassy hop aromas. Though the flavours found in any New Zealand Draught are subtle, those found in Lion Red are markedly complex for such a simple beer, with notes of bread crust, caramel, and a hint of chocolate, making Lion Red this author’s favourite example of the style. New Zealand Draught is unquestionably a uniquely Kiwi brew. It may not be the hippest kid on the block, or the show-pony that so many popular craft beers strive to be but for those same reasons, it is the favourite drop of many hard working New Zealanders, both young and old. That said, the style is at a transitional point. As one liquor store owner I spoke to explained: “Its fans are beginning to literally die off”. However, at the same time, a few nostalgic craft brewers (Fork Brewing and Kainui Brew Co) are – at least occasionally – reintroducing the style to modern beer drinkers, insuring that New Zealand Draught will always have an enduring place in the hearts – and pint glasses - of New Zealanders. THE SHOUT NZ – SEPTEMBER 2019 17