FMCG - Dec 2017- Jan 2018 by The Intermedia Group

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December/January 2018 – Volume 4 – No 11

ANOTHER KIWI FIRST 100% GRASS-FED WAGYU BEEF Brought to you by farmers from Cape to Bluff and First Light

PLUS! NEW BBQ TRENDS ■ EVENTS ■ HEALTHY SNACKS ■ NEW ZEALAND’S LARGEST FMCG AUDIENCE

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contents

December/ January 2018

Up Front

The Shout

Editor’s note

Industry news

Industry news and insights

Gear New technology for work, rest and play

6 NZ Boomers and Millennials: Think different, drink different Insights from Nielsen

Category Insights 14

BBQ Products

Healthy Snacks

7 New Zealand Cider Fest a success! A round-up of the day, plus the 2017 NZ Cider Awards

Regulars 12

Best in season Fresh produce in store

First Light Bringing home the perfect Wagyu steak

What’s Hot New products in store

Back To School Fresh lunchbox inspiration

Pricing, for what it’s worth Lew Bentley’s notes from the retail front line

Outstanding Producers Awards

Good Business Industry news

Events 32 FGC Conference 2017 Chief Executive Katherine Rich summarises the highlights 34

8 The great cider boom John Oszajca explores how far Kiwi cider has come 10

In-cider knowledge Q&A with DB cider maker David Sax

11 Along came a cider Take your pick from these ciders to sip on this summer 12 Summer beers with a fruity twist There is far more to fruit beer than the traditional lemon-infused lagers, writes Neil Miller 14

Aromatic enhancements Tasting notes from Cameron Douglas MS

17 Meet the winemaker Introducing some of New Zealand’s winemaking experts

Events Calendar

34 World Champion Cheese 2017 revealed! 34

T&G supports Hort competition

Social Sphere Industry members spotted out and about

See the latest gear for work, rest and play in this issue.

FMCG BUSINESS - DECEMBER/JANUARY 2018

[ editorial ]

HAPPY HOLIDAYS!

an you believe it’s nearly 2018!? Chances are there will be big sales and discounts on offer in the shops as you read these lines. We are heavy hitters when it comes to promotions. Comparative data from Nielsen shows that a whopping 55% of all supermarket purchases in New Zealand are bought on promotional pricing. Take a close look at the psychology behind pricing - and find out what it takes to make us splurge – in Lew Bentley’s notes from the retail front line on pg 26-28. Sales and promotions aside, the festive season is also traditionally a time to share special, memorable meals and treats with family and friends. If you are looking for that perfect steak to impress your guests, First Light (as shown on our cover) comes highly recommended. From sourcing heirloom Wagyu breed stock from Japan, to raising them on great New Zealand pastures from Cape to Bluff, the team at First Light have made it their mission to deliver the most tender cuts of premium meat. Our special holiday edition of FMCG Business brings you plenty of BBQ inspiration, fantastic beers, wines and ciders for summer and seasonal updates for you and your customers. We take a close look at the Healthy Snacks category in New Zealand supermarkets and reveal some exciting new product launches on pg 20-25. Also in this issue, FGC Chief Executive Katherine Rich reports from the recent FGC conference on pages 32-33. Our team is now looking forward to a short break over summer. Our e-news will resume in January and the next issue of FMCG Business will arrive in early February 2018. Meanwhile, keep in touch and look out for our news and updates on Instagram, Facebook, Twitter and www.fmcgbusiness.co.nz We’d like to thank our readers, advertisers and industry experts for their ongoing support and wish you all happy holidays, Merry Christmas and a prosperous New Year! Enjoy this issue,

PUBLISHED BY The Intermedia Group Ltd 505 Rosebank Road, Avondale Auckland, 1026, New Zealand ph: 021 361 136 PUBLISHER Dale Spencer dspencer@intermedianz.co.nz EDITORIAL DIRECTOR James Wells The Intermedia Group Pty Ltd AUSTRALIA james@intermedia.com.au HEAD OF CONTENT Tamara Rubanowski trubanowski@intermedianz.co.nz ph: 027 278 4761 NATIONAL SALES MANAGER Joel Bremner jbremner@intermedianz.co.nz ph: 021 370 065 SALES DIRECTOR Wendy Steele wsteele@intermedianz.co.nz ph: 021 300 473 THE SHOUT EDITOR Charlotte Cowan ccowan@intermedianz.co.nz ph: 021 774 080 THE SHOUT SALES MANAGER Sam Wood swood@intermedianz.co.nz ph: 021 256 6351 ART DIRECTOR Ryan Vizcarra ryanv@intermedia.com.au HEAD OF CIRCULATION Chris Blacklock cblacklock@intermedia.com.au PRODUCTION MANAGER Jacqui Cooper jacqui@intermedia.com.au PUBLISHING ASSISTANT Eclypse Lee elee@intermedianz.co.nz SUBSCRIPTION ENQUIRIES Eclypse Lee elee@intermedianz.co.nz

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

fmcgbusiness.co.nz

L E A D I N G

I N D U S T R Y

N E W S

December 2017 – Volume 4 – No 11

ANOTHER KIWI FIRST 100% GRASS-FED WAGYU BEEF Brought to you by farmers from Cape to Bluff and First Light

ON THE COVER Kiwis have an exceptional knack for bringing the best of the rest of the world home to these ﬁne shores. The crew at First Light share that same ingenuity and keen ability to identify premium meat. Read the full story on pg 13.

PLUS! NEW BBQ TRENDS n EVENTS n HEALTHY SNACKS n NEW ZEALAND’S LARGEST FMCG AUDIENCE

FMCG BUSINESS IS PROUDLY ASSOCIATED WITH

FMCG BUSINESS - DECEMBER/JANUARY 2018

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 © 2017 - The Intermedia Group Ltd

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[ news ]

From the Publisher’s Desk We would like to take this opportunity to thank the many people and businesses that have supported FMCG Business and The Shout throughout 2017. Now with a monthly audience of over 32,000, our readers, advertisers, contributors and partners have helped us grow to become New Zealand’s largest title in the FMCG industry and Liquor space. In the year ahead we have many exciting innovations planned including The Chocolate and Coffee Show, Top Shelf at Fine Food NZ, NZ Chocolate Awards, The Shout Masterclass Series and the launch of NZ Chocolate Week in October. So if you are thinking about your marketing plans for 2018, please get in touch with the team for some tremendous trade and consumer opportunities. In the meantime, we’ll be back in print in February but still bringing you all the latest news on the websites, e-newsletters and social media. We wish you and your family a very Merry Christmas and hold tight for an exciting 2018!

Dale Spencer, Publisher, The Intermedia Group Ltd.

FMCG BUSINESS - DECEMBER/JANUARY 2018

New GM for Mars in 2018 Gerry Lynch, General Manager of Mars New Zealand, has decided to step aside and look for the next challenge in his career. He has been with the company for just over eight years in the Mars GM role and 11 years at Mars NZ and will leave the business at the end of April 2018. “I have loved every minute of my time at Mars,” says Lynch “but my next move would mean an overseas commitment and for family reasons I have chosen not to move in the short term,” he says. Having succeeded in amazing growth initiatives for the business – and the bringing together of Wrigley and Mars chocolate this year, Lynch says the time is right to hand onto someone else to continue the Gerry Lynch, GM of Mars NZ, Mars growth journey. has decided to step aside in 2018. “I am very proud of my achievements over my time at Mars, not only in leading to growth above average industry every year, but also having Mars NZ as a finalist for the IBM/Kenexa Best Workplace every year. The integration of the Wrigley business, the building of great talent and driving safety leadership across the industry in partnership with our retail partners have been my other key highlights”. Lynch’s successor will be one of the talents he brought on board 11 years ago and who has progressed through the business in New Zealand and global roles. Pete Simmons will return from Brussels, where he has been in the role of Global Care & Treats director, at the beginning of February. Lynch notes that Simmons is a fantastic New Zealand talent who will continue to drive mutual growth and bring with him a wealth of experience in sales, marketing and more recently global innovation.

Australian pharmacy giant arrives in NZ Chemist Warehouse has 400 stores across Australia and its first store in New Zealand has now opened in the St Luke’s Wagener Place shopping complex in Auckland. The arrival of the Australian retail brand is expected to shake up New Zealand’s prices and pharmacy business and will potentially bring a range of new products to market here. The Chemist Warehouse website offered up to 50% off non-subsidised prescriptions soon after opening in Auckland. Countdown supermarket pharmacies could also feel the effects of Chemist Warehouse if the chain spreads. Countdown has in-store pharmacies at 18 supermarkets around the country, charging $2.50 per prescription item, which is cheaper than most other pharmacies. The Chemist Warehouse is open 7 days, including Public Holidays. It is likely to be followed by other stores, if the pilot store proves successful.

PAK’nSAVE Clendon open for business

We don’t just find great individuals... We build great FMCG teams. Convergence Partners has been instrumental in developing the talent framework behind many iconic FMCG brands and organisations.

(L to R) Manurewa-Papakura Ward Chairperson Angela Dalton, Mayor of Auckland Phil Goff, Owner-operator Roger Knapper with daughter Sophie Knapper and wife Giselle Knapper.

A significant construction project for Foodstuffs, PAK’nSAVE Clendon, has oﬃcially opened. Clendon had a 30-yearold New World that was in need of replacement, but Foodstuffs North Island could see that a PAK’nSAVE would better serve the local community. Through a carefully managed construction project, the Foodstuffs North Island team kept the New World store running while Stage 1 of a brand new PAK’nSAVE was built Owner-operator Roger Knapper with daughter Sophie (L) and wife Giselle (R). right next door. Owner-operator Roger Knapper, his team and the Foodstuffs project team worked together to get New World Clendon ready to close its doors for the last time on April 23. They then opened the half-size PAK’nSAVE on April 26 and operated that way for six months, while the old New World was demolished, and the other half of the new PAK’nSAVE was built in its place. Now, the second stage is complete and Clendon customers can enjoy the full-sized store. “I’m so proud of my team, Roger says. “They’ve dealt with immense pressure in going through the process of closing one store and opening a new one. I’m very grateful to the community for their understanding and patience. The transition period was challenging, but the end result is outstanding,” he says. Foodstuffs North Island GM Property Development Lindsay Rowles says the project required careful management. “Running a construction project while maintaining food safety standards, keeping our customers safe and providing the same high standards of service is an interesting challenge, but we’re pleased to say that the project went well and was completed on schedule. “We’re very pleased to be able to bring New Zealand’s lowest food prices to grocery shoppers in Clendon,” Rowles says.

Whether you’re looking to fill senior, niche, technical or business critical roles, we can help. Talk to our specialist FMCG recruitment team: Lara Devereux Sales & Marketing lara@convergencepartners.co.nz 09 300 6877

Bobbi Ryan Supply Chain & Operations bobbi@convergencepartners.co.nz 09 300 6874

Erin Kirk Sales & Marketing erin@convergencepartners.co.nz 09 300 6791

Claire Ellis Finance & Accounting claire@convergencepartners.co.nz 09 300 6792

Chris Palmer Interim Talent chris@interimtalent.co.nz 09 300 6872

www.convergencepartners.co.nz

[ news ]

Are you ready for Amazon’s arrival? Amazon.com has told its Australian sellers to be ready to take orders. Amazon has already set up a distribution warehouse in Melbourne and logistics analysts say this will help cut delivery times to one or two days. Australia has long been home to Amazon-registered sellers, but until now they had been limited to sending goods offshore since the $550-billion company didn’t have a warehouse in the country of 24 million people. Amazon sent an email to some Australian retailers registered to sell goods over its website, saying it would “start an internal testing phase with a small number of customers on Thursday 23 November. You should be prepared to receive orders from this point onward.” Retailers not yet ready to trade can opt out of the testing phase by setting their seller account to inactive in the Seller Central online portal. The news came a few days after Amazon Australia Country Manager Rocco Braeuninger told an audience in Sydney that the company was “really, really, really close” to launching. Braeuninger also told attendees at the Marketplace Seller Summit that Amazon will launch its own retail offering and third-party marketplace at the same time. Hianyang Chan, Senior Research Analyst at Euromonitor International comments: “Amazon’s entry might be the moment when shopping behaviour in Australia swings decisively towards e-commerce. Internet retailing might only currently account for a small percentage of total retail sales. However, the entry of Amazon will very possibly spark off a much needed increase in competition that will bring both opportunities and threats for existing retailers. The online retailing giant is expected to not only offer competitive

UK: New food retail behemoth on the horizon

pricing across a wide range of products but also enhance customer’s online shopping experience. This disruption will likely force current retailers to better leverage their relationship with their customers, strive to offer a more exclusive range and further innovate to improve their services and product offerings to better entice consumers. It will be vital for retailers to embrace the changing dynamics, step out of their comfort zone and chart their own way forward or risk being left behind.” In the lead-up to Amazon Australia’s launch, many consumers took to social media to welcome the online heavyweight’s entry into the market, and to slam large Australian retail chains for taking their customers for granted through high prices, poor customer service, limited range and a lack of online offerings.

A Tesco-Booker merger has the all clear – and the wholesale convenience market in the UK will never look the same again. Tesco’s £3.7bn takeover of cash-and-carry group Booker has been given the provisional go-ahead by the competition watchdog despite rivals warning the deal could drive them out of business. After spending six months analysing evidence from competitors, the Competition

and Markets Authority (CMA) has concluded the merger of Tesco and Booker – the UK’s biggest retailer and grocery wholesaler respectively – is not bad news for shoppers and diners. Despite its “provisional unconditional clearance” of the deal, the wholesale convenience market still has a lot to be concerned about from the scale of operation and buying power that the deal generates. Clearance was based on the lack of overlap in the supplied catering division which accounts for 30% of Booker’s sales, and the fact that any price competition would be beneficial for consumers and wouldn’t push other players out of the market. Wholesale consolidation in the UK has come as grocers desperately seek growth in a mature market with high cost inflation and an increasingly discerning consumer. Sweating assets has become the focus, and in the case of all three wholesale mergers (Tesco, Co-op, and Morrisons), operating in wholesale supply will allow excess capacity to be utilised within the supply chain. As a result, supply becomes a high return on capital invested venture, something which is only otherwise offered in successful franchises within food retail.

FOR MORE INDUSTRY NEWS FOLLOW US ON

CHECK OUT WWW.FMCGBUSINESS.CO.NZ

FMCG BUSINESS - DECEMBER/JANUARY 2018

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[ gear ]

Big Little Buds - Samsung Icon X (2018) Bulky headphones are so last year! Samsung’s Icon X buds are small enough to fit inside both ears. Size aside, they can also store up to 4GB of music, coach you when running using voice prompts and they come in a pocketable, portable charging case. Good things do come in small packages. http://www.samsung.com/uk/wearables/geariconx-r140/SM-R140NZKABTU/

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

Added Ooonst Beats Studio 3 Headphones Beats latest Bluetooth over-ear headphones use an Apple designed W1 chip. This makes getting them wirelessly connected to an iPhone almost bomb-proof. Powering on the Beats Studio 3’s sees a pop-up appear on your iPhone. One button tap later, you’re connected. Easy! The other benefit of the W1 chip is Battery life - the Studio 3’s can run for an impressive 22 hours. They also have active noise cancellation, which makes them ideal travel companions for i-people. https://www.beatsbydre.com/headphones/studio3wireless

The Original!!! Nokia 3310 Hankering for the good old days of near indestructible Nokia dumb phones? HMD Global who own the Nokia brand have got your nostalgia needs covered. They’ve launched the Nokia 3310, the anti-smartphone that comes with a slick colour display and a retro cool design. It’s a basic phone that does limited web browsing, text and calls (it also plays a mean game of snake). It’s simple, elegant and has a 27-day standby. https://www.nokia.com/en_int/phones/nokia-3310

FMCG BUSINESS - DECEMBER/JANUARY 2018

[ gear ]

Smart Wrist Garmin Vivoactive 3 Smart watches are often about as useful to fitness fanatics as a cat door on a nuclear submarine. Joggers don’t want to be notified about Facebook when out on a run, they want to know how they’re performing run-wise. This wasn’t lost on Garmin whose Vivoactive 3 is designed first and foremost to be a runner’s watch and then as a smart watch. Battery life is an impressive seven days. A transreflective screen also means that the Vivoactive 3 is readable under direct sunlight. GPS is built in to track your runs, plus there’s a tonne of exercise pre-sets ranging from running through to snowboarding. Add to this 24/7 heart-rate monitoring, an altimeter and you’ve got the makings of the ultimate exercise companion. https://buy.garmin.com/en-NZ/NZ/p/571520

Twin shooter Huawei Mate 10 Pro Huawei’s latest line of flagship phones comes with built in AI hardware. This sees machine intelligence used in subtle but incredibly useful ways such as ensuring photos are not blurred, or that the right camera settings are chosen by the Mate 10, which can recognise the type of photo you’re shooting. AI is also used to manage energy consumption, which translates into at least two days of battery life. Noise cancellation is also applied to calls, so calling from a noisy environment needn’t be a problem. http://consumer.huawei.com/en/phones/mate10-pro/

Square eyes! Vodafone TV Vodafone’s TV set top box connects to Vodafone fibre or fibre-X broadband to bring you Sky, Freeview and Netflix all in a single, elegant, pint-sized package. Because recordings are stored remotely in a Vodafone data centre, there’s no hard drive in the Vodafone TV, which means there’s no capacity issues. Better still, dozens of shows can be recorded instantly. The Vodafone TV app also allows you to watch or remotely record selected shows when out on the go using a phone or tablet. https://www.vodafone.co.nz/tv/vodafone-tv/

FMCG BUSINESS - DECEMBER/JANUARY 2018

[ fresh produce ]

Best in season

e’re spoilt for choice when it comes to summer fruit – a big range is now in season including apricots, peaches and cherries, which are always a hit at Christmas. Berry fruit is also in full swing with plenty of strawberries, blueberries, boysenberries, blackberries and raspberries available, alongside green gooseberries, which are only harvested for a few short weeks each year. Other popular fruit to display this month are navel oranges and watermelon. The latter has huge appeal for consumers as it contains over 90% water and is an ideal snack on hot summer days. It will be available from now until March. Tomatoes, avocados and snow peas are in good supply. New Zealand butternut and buttercup squash have started to make an appearance, and will be around from now until June.

Strawberries Strawberries grow well right across New Zealand but 40% of our commercial crop comes from the Auckland region. Fresh strawberries that are displayed well will generate repeat consumer visits and purchases. Storage/handling: Berry fruit are highly perishable and need to be handled very carefully. Store immediately in your chiller at 4°C. Strawberries should ideally be displayed in a refrigerated cabinet unless you’re moving large volumes and are restocking regularly. What to look for: Choose strawberries that are bright red in colour. If they’re still white in places, they’ve been picked too early. Availability: Main season runs from September until late January. Nutrition: Strawberries are a good source of Vitamin C and are also a source of folate and niacin. 12

Apricots New Zealand apricots are available from December until February and flourish in central Otago because apricot trees need cold winter temperatures to produce fruit. Apricots originate from China and the tough seed in the centre is inedible and poisonous. Storage/handling: Store in a refrigerator at 4°C. Consumers like to eat summer fruit that is ripe (research shows consumers will wait six weeks before buying again if they’ve had a bad experience), so manage your stock accordingly and carefully ripen in a back room if necessary. What to look for: Choose apricots that have smooth, unwrinkled skin and are orange-gold in colour (avoid pale yellow or green-yellow skin). They should feel firm but yield slightly to light pressure. Availability: December until February. Nutrition: Two apricots will provide your Recommended Daily Intake (RDI) of Vitamin A and about 20% of your RDI of Vitamin C.

Cherries Early season cherries are predominately from Hawke’s Bay while our main crop is grown in central Otago. Cherry trees take about six years to start producing fruit but will then continue doing so for about 100 years! Storage/handling: Stock rotation is crucial. Store at 4°C before displaying on your shelves. Regularly check punnets and cartons to ensure quality is maintained and remove any cherries with blemishes or residue. What to look for: Cherries must be ripe when picked because they do not continue

FMCG BUSINESS - DECEMBER/JANUARY 2018

ripening once harvested. Look for fruit with firm and glossy skin. Avoid those that are soft or have wrinkles. Availability: December and January. Nutrition: Cherries are rich in antioxidants and one cup will provide 75% of your daily Vitamin C needs. They also contain potassium which helps muscle and nerve function.

Blueberries Blueberries grow on shrubs and are native to North America. They are regarded as a ‘superfood’ and the bulk of New Zealand’s crop is grown in the Waikato. Storage/handling: Blueberries are known for having a good shelf life but they require regular checking and stock rotation to ensure they’re fresh and haven’t deteriorated. What to look for: Blueberries should be deep purple-blue-black in colour. Avoid those that appear red, soft or shrivelled or have any signs of mould. Availability: December until March (or slightly beyond if it’s a good crop). Nutrition: Blueberries are a rich source of antioxidants and are full of important nutrients. They are low in calories, a good source of dietary fibre and a source of Vitamin C and Vitamin E. United Fresh New Zealand Incorporated support the 5+ A Day Charitable Trust. Visit www.5aday.co.nz for more fresh fruit and vegetable facts, storage information, nutrition information and recipes. 5+ A Day is also on social media: @5adaynz .

[ cover story ]

FIRST LIGHT Bringing home the perfect Wagyu steak.

magine a sunny, late afternoon, grill nice and hot, and a few mates around for dinner. You throw on some gorgeous steaks, their perfectly marbled fat sizzles away for just a few minutes until served. At first, it’s kinda quiet around the table as people tuck in. Then, your best friend looks up and exclaims; “Mate, this is the best steak I’ve ever had, how’d you do that?” You simply smile, raise that beer to your lips and think to yourself, “Cheers First Light”. First Light Farms has this scene in mind behind everything they do. From sourcing heirloom Wagyu breed stock from Japan to raising them on great NZ pastures from Cape to Bluff - alongside some of the best farmers in the country, these guys want the most tender of steaks on every Kiwi grill in the land. It’s an ambitious goal cooked up by a few mates around their own table, dreaming of the day they could make grass-fed Wagyu beef available to anyone anywhere. It’s taken over 10 years and a few villages of people to raise this dream but the extended family at First Light are now ready to hand you that perfect steak. Their focus has been on identifying the best of Wagyu genetics, the keenest kiwi farmers

FIRST LIGHT ARE NOW READY TO HAND YOU THAT PERFECT STEAK.”

operating on peak pastures all backed by a team of quality buffs who know their Wagyu BMS marbling scale inside out. Raising grass-fed Wagyu (an animal typically fattened by grain in Japan) is pretty much the holy grail of beef as it has healthier outcomes for both animal and consumer while remaining the most tender cut you’ll likely ever come across. The international team at First Light have quietly gone about this business of insuring high yield kale, chicory and mixed grass crops are consistently available for a feeding regime that produces the same, if not better, level of marbling necessary for delicious streaks. Their exceptional finishing and butchery teams brings all this home with outstanding cuts from tri-tip to rib-eye. Kiwis have always had an exceptional knack for bringing the best of the rest of the world home to these fine shores. The crew at First Light share that same ingenuity and keen ability to identify great meats and cuts (as seen on our cover), but in their case, they’ve found a way to take a centuries old breed and historic traditions and add a ‘God’s own’ fresh water and rich pastured twist. All this so you can enjoy those long summer days with a steak known around the world as the very best of the best. To place an order contact Kieran Dalgety ph 021 488545. FMCG BUSINESS - DECEMBER/JANUARY 2018

LICENSE TO GRILL

Sizzling hot trends for BBQ enthusiasts.

“Customers are choosing to pay a little more for top notch quality f you think that the meat on display in your local New World – trading up and turning the everyday into something new.” supermarket chiller is a little different to what you would have seen five to 10 years ago, you’re right. While there’s still demand for delicious lamb legs for the Sunday roast there is Freedom Farms Smoked Pork Chorizo a marked change in the cuts available for BBQs and meals for “We’ve finally mastered the product that tons of our customers family and friends. have been impatiently waiting for… a yummy dried and cured Tim Donaldson, GM Retail for Foodstuffs South Island, owners chorizo made with high welfare pork Freedom Farmed here in New of New World, PAK’nSAVE and Four Square, is excited about what’s Zealand,” says Hilary Pearson of Freedom Farms. “Our Spanish on offer for shoppers. “We are selling a greater variety of cuts than style fresh chorizo sausages have been on the shelves since 2014 10 years ago including the likes of pork medallions, pork belly, pork and are a big hit. The new dried and cured version has a deeper rump, lamb rump, lamb back straps and lamb racks. We’re also smokier flavour that will make a scrumptious addition to happy seeing more sales of value added meat products either prepared insummer eating. store by our butchers or by trusted suppliers, for example chicken “Smoked Pork Chorizo has a massive flavour hit, made with our parcels and filled breasts. Pulled meat recipes and tasty shoulder pork and smoked paprika, which slow cook meat cuts are coming back into fashion also gives it a vivid red colour. It is perfect for as well.” chucking on the BBQ on fresh seafood kebabs, That said, while supermarket shoppers are tossing through pasta salads or serving grilled on looking for all sorts of inspirational ideas in the balmy summer evenings with tapas, cheese and meat chiller New Zealanders are still partial to drinks. We recommend sizzling it before serving to favourites like prime and premium beef mince – get it extra crispy and delicious. Like all Freedom FREEDOM FARMS which accounts for 8% of all meat sales in New Farms sausages our Smoked Pork Chorizo is World and PAK’nSAVE. gluten free and made with natural pork casing.” HAVE OFFERED Donaldson says, “Meat patties, meatballs and Freedom Farms have offered consumers high CONSUMERS other ready-to-cook products are popular and are welfare products for over ten years. clearly a reflection of busy Kiwi lives and a desire Pearson says: “We reckon Kiwis enjoy good HIGH WELFARE to save a few minutes here and there. Gourmet food and want to know how it has been farmed, PRODUCTS FOR sausages are also proving popular. It’s no longer the before they endorse its existence by buying OVER TEN YEARS.” it. The farms we source ingredients from are case of the humble banger; instead consumers are enjoying premium hand-made sausages independently audited by AsureQuality to with higher meat content and exciting make sure animal welfare flavours inspired by French, South standards and environmental African and traditional English recipes. sustainability are at the heart We’re also seeing some creative New of farming operations.” Zealand flavours and recipes. About She adds: “Freedom Farms 90% of our stores now make Premium Smoked Pork Chorizo comes Handcrafted sausages in-store and we’re in a 200g pack and is in a doing a good job. At last year’s Devro growing number of wonderful Great New Zealand Sausage competition supermarkets and specialists we took home 11 of the available 33 who already stock our bacon, awards including the coveted People’s ham, fresh pork cuts, chicken, Choice,” says Donaldson. sausages and eggs!” 14

FMCG BUSINESS - DECEMBER/JANUARY 2018

[ category insights ] Meadows mushrooms bring summer to life Summer is definitely coming and so is the time we spend with friends in the sun, eating delicious healthy food and generally enjoying long warm evenings. For some reason, being healthy in summer seems to be that little bit more important than any other season of the year and Meadows definitely had this in mind when they launched the new summer inspired punnets filled with healthy fresh mushrooms and inspiring meals ideas. Mushrooms will always add stunning flavour to any meal and of course are incredibly healthy, packed with B-group vitamins and selenium as well as being the perfect low fat, gluten free goto food this summer for salads. Mushrooms on the barbeque or added to your tapas sharing plates with a side dollop of aioli – what could be better. The large portabello is scrumptious added to a yummy burger, for example. The Meadows new on-pack labels will easily guide shoppers with ways to enjoy each type of mushroom with a delicious international dish. Meadows continues to be the leading producer of mushrooms in New Zealand. Proudly family owned since 1970, Meadows is dedicated to growing Nielsen Scantrack Data Total Supermarkets - w/e 05/11/2017 Val Sales

Val % Chg YA

Total Prepacked Smallgoods

$382,624,528

5.2% 9.3%

Prepacked Sausages/Sausage Meat

$81,475,692

Frozen Patties

$15,948,542

8.7%

Total Frozen Poultry

$136,839,198

10.5%

Frozen Convenience Foods

$118,578,688

9.2%

Frozen Meat

$23,222,940

6.3%

Total Frozen Fish

$81,736,763

3.5%

Frozen Other Fish

$42,223,830

5.0%

Frozen Prawns

$24,650,534

12.7%

Frozen Fish Fillets

$33,767,478

2.5%

Vaccum Packed Fish And Seafood

$50,671,006

7.4%

Vacuum Packed Fish

$48,687,881

7.6%

Vacuum Packed Shellfish

$1,906,342

3.5%

Vacuum Packed Other Seafood

$76,783

9.9%

great tasting nutritious mushrooms to be enjoyed by Kiwi families every day. Based in Christchurch, they are continually investing in innovation to produce the best quality farm product to Kiwi kitchens. Picked daily, it’s guaranteed that Meadows mushrooms are always 100% fresh. For more information visit www.meadowmushrooms.co.nz or phone 03 349 8998.

Celebrate Summer & BBQ season with Castello Building on its enormous popularity, the Castello cheese brand continues to drive growth in the specialty cheese category through innovation and the introduction of new cheeses. “Castello continues to strengthen its number one position in the Blue Cheese Segment with 25% market share in value,” says Marketing Manager Jane Waddel. “Castello is driving the growth in the blue cheese category and is growing three times faster than the Blue Cheese Segment. It is also supporting the growth in Speciality Cheese, growing at more than double the rate of the category.”* She adds: “Evidence that Castello continues to build on its leading brand position can be seen with the introduction of Burger Blue cheese slices, the only brand providing sliced blue cheese in New Zealand. They are specifically designed for use in burgers and sandwiches over the summer and BBQ season. The Burger Blue cheese slices are based on the recipe of Castello’s delicious Extra Creamy Danish Blue and are conveniently sliced to the perfect size and made to melt, transforming any burger into an epicurean delight. The creamy and characteristically tangy notes of blue feature balanced sweet and salty undertones, lending an exquisite flavour to a savoury grilled beef patty or sandwich. Each pack contains five convenient burger-sized slices that are perfect for melting. To try some of our Burger Blue recipes visit hutchinsons.co.nz/brands/castello . Recipe cards are also available on request for stores to give consumers some inspiration.” For more information phone Hutchinsons 0800 555 258. *IRI MarketEdge, NZ Grocery, Specialty Cheese, TKA, Value MAT to 5/11/17

The FMCG Business team endeavours to produce a monthly snapshot of category news and highlights, based on information from participating clients, plus a table of the freshest Nielsen data available at time of print. If you wish to contribute news for upcoming category reports, please contact trubanowski@intermedianz.co.nz. 16

FMCG BUSINESS - DECEMBER/JANUARY 2018

[ category insights ] Alfa One – perfect for your BBQ Alfa Rice Bran Oil contains more natural antioxidants than other cooking oils and the high smoke point ensures the antioxidants are maintained through the cooking process, explains Marketing Manager Kylie Jillings. She says: “Make the healthier choice with Alfa One Rice Bran Oil BBQ Grill & Pan Spray. No one wants to consume propellants with their steak, which is why Alfa One BBQ spray is naturally propelled through an environmentallyfriendly spray can. The nitrogen sits separate from the product, so you are only consuming 100% rice bran oil. It’s completely non-flammable and has a high smoke point – the perfect choice for the BBQ. “Whether you are frying or barbecuing, the Alfa One BBQ spray is the perfect oil to ensure great performance. Spray directly onto your food or onto the BBQ plate or pan.” The Alfa One range also includes a non-stick baking spray, classic rice bran oil, and brown rice oil.

Fresh summer creations from Hellers “Summertime means barbeques. And, here in New Zealand, barbeques mean Hellers,” says Jason Trewen, Hellers’ Brand Manager – small goods. “New Zealand’s favourite brand of small goods has a reputation for innovation, having consistently developed

FMCG BUSINESS - DECEMBER/JANUARY 2018

sensational new tastes that stimulate both the market, and the taste buds of Kiwis right around the country,” says Trewen. “That trend continues this season with the introduction of two new summer sausages. The first is the free-range, Chicken, Lemon and Oregano sausage, a delicious creation which tastes every bit as good as it sounds! These sausages have been developed specifically to cook quickly on the BBQ”, says Jason. “They look amazing too. The parsley we’ve used has given them a real sense of vibrancy.” The second new offering this summer is the freefarmed Pork and Sriracha Chilli sausage, crafted especially for those who like it hot. “With Korean chilli powder, fresh ginger, garlic and onion, this sausage really packs a punch!” Both sausages come in a five-pack complete with a bright green tray to make them really ‘pop’ on the shelves. Hellers taste treats for the season also includes their Christmas Chipolata. “The Christmas Chipolata was hugely successful when first launched last year”, says Trewen, “and it was a given that it would feature again this BBQ season.” Capturing the very essence of Christmas, this mouthwatering chipolata features fruit mince (apple, sultana, currants and mixed citrus) and comes in a six-pack which really stands out with its golden tray.

[ what’s hot ]

Introducing the Regal Manuka Salmon Range The fresh Manuka Honey & Soy Glaze Salmon portion is ideal for the BBQ this summer, or for a quick and healthy meal the whole family will love. Gluten free and packed full of omega-3s, shoppers can purchase this convenient 140g product over the seafood counter. The range also includes Manuka Smoked Salmon Slices, 100g and 200g, and Double Manuka Wood Roasted Salmon, 200g. regalsalmon.co.nz 0800 725 666

Summers New Sweethearts With the warmer weather approaching fast, get ready for more barbecues, picnics and all that’s great about the Kiwi summer. To kick off the sunny season, look out for the fresh NEW dressings, mayonnaise and aioli range by Praise, to pair with your delicious summer meals. Goodman Fielder NZ, 0800 376 378

New NZ Made Flavoured Rice Cracker We’re breaking the mould on overseas made Rice Crackers and have 4 wonderful flavours to share with you all. Sour Cream and Chives, BBQ, Salt & Vinegar and also an Original. In stores now. rutherfordandmeyer.co.nz Oﬃce@rutherfordandmeyer.co.nz 04 976 0251

New Nature Valley™ Nut Butter range Go ahead, try our new Nature Valley™ Nut Butter biscuits with oats that are 100% whole grain, containing deliciously smooth filling blended with real Peanut Butter or Almond butter. The perfect-on-the-go companion, or the little indulgence to enjoy towards the end of your day. Available from 22.01.2018. Available in two ﬂavours: Peanut and Almond www.naturevalley.co.nz 0800 235 727

Omega Plus® King Salmon Pet Treats Omega Plus® King Salmon Treats are a healthy and delicious way to treat your pet! All natural and 100% King Salmon, the treats provide all the health benefits of Omega-3s. Loved by cats and dogs, the advanced marine-based nutrition is unlike anything available in New Zealand. Nutrition your pet deserves! For more information please contact Tina Thomas 0225485702, or Alliance Marketing 09 263 9466 Visit www.omegaplus.co.nz for our full range of petfood and treats. FMCG BUSINESS - DECEMBER/JANUARY 2018

HEALTHY SNACKS Discover what’s driving sales this summer.

here’s been a shift in the mindset to overall wellbeing when it comes to food, and this is no more prevalent than in snacking. “Shoppers are looking for solutions that embrace healthier ingredients, and looking down on products with long lists of ingredients they don’t recognise. The snacking options from Ceres Organics fit this need,” says Glenn Cochrane, National Sales Manager. Following the success of their wholesome Brown Rice Cracker and Bites snacking ranges, Ceres Organics have recently launched some new exciting flavours. Their Brown Rice Bites are now available in winning mainstream flavour Sea Salt & Vinegar, and at the other end of the taste spectrum, subtly sweet Coconut. Perfect for lunchbox snacks, they’re baked not 20

FMCG BUSINESS - DECEMBER/JANUARY 2018

fried and contain no MSG or preservatives. Their Brown Rice Crackers, fit for loading with toppings and summer spreads, are now available in Original - the simple sea salt flavour highlights accompaniments wonderfully. Also new is Sea Salt & Vinegar, and Sour Cream & Chives. “These are a hit in-store, shoppers love having organic options, with few ingredients, for these usually conventional flavours” says Cochrane. “Ceres Organics has a wide range of other healthy snacking options, like their top-selling Seaweed Snacks. These are a go-to superfood option, serving up a heap of your iodine needs. They also offer popular, Garden of Eatin’ Corn Chips - a chip above the rest. These premium chips, made from organic corn are harvested by sustainable farming partners, and make a nutritious and deliciously dippable choice.

[ category insights ] “For Ceres Organics, healthy snacking doesn’t just mean healthy for you, it means healthy for the planet too. From soil, to store, to stomach, their snacks are helping make the world a better place. Plus they taste top notch,” says Cochrane.

pure delish Auckland-based company pure delish has a history of 20 years manufacturing breakfast cereals, snack bars, biscuits/bites and slabs. They make unique, innovative, and category challenging products that not only have many health benefits but taste amazing too. At pure delish everything is handmade by people not machines. From the delicious smelling bakery to the packing stations where everything is packed by hand to ensure the most stringent quality, it’s easy to see why the product tastes so good. The category of high-end premium snacks is continuing to grow with a lot of new players coming into the space. The great news is there are an increasing number of consumers wanting to buy better quality snacks and realising the true value of paying more and getting better value overall. New trends in consumer behaviour (and why they buy) are constantly changing, especially in the health and well-being sector. People increasingly want snack foods that are free from certain allergens but also those with added health benefits. Shoppers not only want convenient snacks but the added benefit of taste and nutritional value is just as important. pure delish currently have a range of four snack bars and four cookies bites. Each one has its own unique profile. The bars are densely nutritious and are all grain, gluten and egg free.

The company has also recently launched fantastic new, user-friendly resealable pouches and a new flavour, ‘spicy ginger bites’ to their already amazing range of bites. The new packaging has increased shelf presence and is targeted to the biscuit aisle of the supermarket. pure delish want everyone to be able to access these delicious morsels so getting them in mainstream grocery will help achieve this. pure delish’s individual snack bars are also available in a multipack of four bars, perfect for the snack bar aisle. The convenience of a 4-pack offers better value to the consumer who would normally purchase individual bars. 2018 is looking to be another fantastic year at pure delish with plenty of innovation and product development already underway. Watch this space!

Prolife Foods “Prolife Foods is NZ’s largest nut supplier - our brands are Mother Earth, Value Pack and Alison’s Pantry Self Selection departments in New World and Pak’n Save,” says Kristina McCalman, Senior Brand Manager (Nuts and Snacks). She explains: “We are rapidly changing the way we eat. The norm of three meals a day has become a

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[ category insights ]

THE CATEGORY OF HIGH-END PREMIUM SNACKS IS CONTINUING TO GROW.”

thing of the past, Snackification is the new normal! Snacking represents a significant portion of almost everyone’s daily routine with 90% of us snacking multiple times through the day. Couple this trend with the upsurge in food related health and wellness, plant based foods, the focus on protein intake, low sugar and unrefined wholefoods – and nuts are the perfect go to food! Not only are they a convenient, portable snack but they are one of the best sources of plant based protein, with each nut having its own list of great nutritional benefits. Nuts are naturally low in carbohydrates, contain very little sugar, they help keep the blood sugar levels stable and eating nuts helps sate appetite! “Just a handful of nuts (30 grams) a day can make a difference to your overall health and wellbeing; have you had yours today?” McCalman says: “Dollar growth in the Snack Nut category is at 4.4% (MAT to 01/10/17), Unit growth is 8.6% for the same period. Mother Earth continues to be the leading brand in snack nuts, with dollar sales growth at 17.7% (MAT to 01/10/17).” IRI MAT to 01/10/17 Total New Zealand Grocery

New launch from Proper Crisps Something unique - “Proper Crunch Corn” - is brought to you by Nelsonbased Proper Crisps. A partially popped whole grain corn kernel, which brings you a perfect crunch in each munch, lightly flavoured with Marlborough Sea Salt and mouth-watering Apple Cider Vinegar. Mina Smith, Co-owner at Proper Snacks, says: “Although the popcorn market is up 7.6%, what’s really interesting is the 19.5% growth coming from ready-to-eat popcorn. This growth is driven by the healthy snacking trend and Proper Crunch Corn is the perfect fit for this segment. Naturally high in anti-oxidants and an excellent source of fibre, Proper Crunch Corn is lightly seasoned with real natural ingredients. I can’t stop nibbling on it. It’s just so moreish!” Proper Snacks is proud to introduce to New Zealand a Proper Crunch Corn. This is a twist on one of the oldest corn snack foods in the world, which the Americans have been snacking on for over 5,000 years. Crunch Corn was an accidental discovery by a Minnesota corn farmer who was experimenting in his kitchen for an alternative fuel source when it literally backfired on him and instead created an edible fuel source. The partially popped corn covered his kitchen. It tasted better than it looked with its unique explosion of flavour and perfect crunch, so voila! Crunch Corn was born. 22

FMCG BUSINESS - DECEMBER/JANUARY 2018

The recipe is kept secret, but Proper Snack Foods decided it is a secret worth letting you in on! Sharing this wholegrain and Trans fat-free goodness with loads of fibre in every crunch! Ned Smith, Co-owner of Proper Snacks , says “This is a way more delicious alternative to any other corn snack I’ve ever tried! The wonderful way sunflower oil melts with the corn adds to the mouth-watering experience.” Proper Crips is always true to its philosophy that snacks can be real food. Proper Crunch Corn is -100% natural, gluten free, vegan, GMO-free and NO MSG added ever!

ABE’s Bagel Crisps The ABE’S Bagel Crisps 150g range comes in six flavours; Sea Salt, Marmite, Sour Cream & Chives, Roasted Garlic, and Caramelised Onion & Balsamic Vinegar and Sun Maid Cinnamon & Raisin. Sea Salt, Marmite and Pizza are also available in 8 x 15g multipacks. “These mouth-watering little gems are made by slicing, then seasoning ABE’S genuine steam baked bagels with gorgeous natural ingredients,” says Marketing Manager, Melanie Kyle. “Baked and not fried, they are healthier than regular potato chips, with 60% less fat. They’re also free from artificial colours, flavours, preservatives, cholesterol, added MSG, or any other nasties.” “At ABE’S we remember the good old days when we spent our lunch times blowing into our make shift Sun Maid raisin box whistles. Which is why we wanted to respark the nostalgia for the rest of New Zealand. We thought what better way to do this than combining Sun Maid raisins with our bagel crisp recipe and creating the perfect sweet snack. ABE’S Sun Maid Cinnamon & Raisin 150g was launched in October 2017, and the Multipack is launching in January 2018. We are expecting this to be a big hit with adults and kids. Our snacks are healthier than many of the options in the snack category,” says Kyle. She adds: “As for the ongoing trends, healthy and on-the-go snacks, new and unusual ingredients, and cross-pollination or ‘brandmance’ are all driving the market forwards, and this has worked for ABE’S. Keep a look out in stores for lots more exciting npd to come.”

Graze nuts and nibbles James Crisp Ltd offers consumers more nuts for their bucks with the Graze brand of resealable, bulk pack nuts and nibbles in New World and Pak’n Save stores, says Marketing Manager, Melanie Taylor.

[ category insights ] “Graze is the market leader in the Packaged Nuts category in Foodstuffs with 28% value share1 and has delivered $17.4M in value sales since launching in Foodstuffs stores in September 2015.2 “Our large Graze bulk packs trade consumers up and provide higher basket dollar spend. In addition, Graze offers unique bulk pack products to the category such as Tamari Roasted Almonds, Roasted & Salted Pistachios and Tropical Nut Medley.” James Crisp also distributes the Cinderella brand in Countdown, New World and Pak’n Save stores. Taylor explains: “Cinderella is a trusted brand and is the market leader in the Total Dried Fruit Category with 17% value share.3 The brand offers a range of naturally good, dried fruit lunchbox snacks and ready-to-eat products. “Graze has a proven range with products comprising nine of the top 15 skus in Foodstuffs.1 Consumers can get even more nuts for their bucks with our new Smokey BBQ Almonds 455g pack, which launched in September 2017. These Smokey BBQ Almonds are a savoury delight - quality almonds, oil roasted to perfection with a delicious Smokey BBQ seasoning. This unique sku will deliver incremental sales to the category.” She adds: “Since launching in September, distribution and rate of sale of the Graze Smokey BBQ Almonds 455g pack is growing steadily.

Nuts are in significant growth, being in the intersection of the three mega trends of health, convenience and taste,” says Taylor. “Consumers are looking for snacks that are healthy, but also deliver on taste. Convenience continues to be a main driver in this category and mini product portions and resealable bags are seen as an effective means of preventing over-indulgence.4 Consumers have concerns over Bulk Bin freshness and hygiene and are turning to packaged options to meet their needs.4” 1. Nielsen Data, T. Packaged Nuts, T. Foodstuffs, Value, MAT to 05.11.17 2. Nielsen Data, T. Packaged Nuts, T. Foodstuffs, Value Sales to 10.09.17 3. IRI MarketEdge, T. Dried Fruit, TSM, Value, MAT to 22.10.17 4. Futurescape, Dried Fruit & Nuts Research, June 2015

Nourish Healthy Foods Nourish Healthy Foods is an innovative Wellington company that has created exciting healthy snack bars using gluten-free, nutrient-rich whole food ingredients. The brand is still young; but the explosive growth received through social media and the last five months’ sales into Foodstuffs supermarkets has really set the seed for things to come, says Founder John Matsis. Extensive interactions with the target market shaped the development of the Nourish bars, which meet the growing market for a convenient healthy snack between meals or pre/post exercise. Matsis explains: “It became clear that customers are looking for snacks that are full of natural nutrients, and free from chemicals, which mirrors today’s modern nutritional thinking. Therefore, our bars are crammed with 12gs protein + 7g fibre and good fats from premium nuts. They have very simple wholefood ingredients that our bodies know how to digest.

SNACKING REPRESENTS A SIGNIFICANT PORTION OF ALMOST EVERYONE’S DAILY ROUTINE.”

[ category insights ] “Our current range consists of the following classic pairings of: • Honey & Almond • Cacao & Hazelnut • Vanilla & Walnut “We have also packaged the bars with an innovative, fun, bright and eye-catching design that will create interest.” Enquiries are welcome. Contact John on: 021 18 27 603; info@nourishnz.com; www.nourishnz.com or Plum Agencies - Deanna on 021 1168018.

Rutherford & Meyer “Have you heard?! We just launched our new flavoured cracker range! These wee goodies are perfect on platters or just as a snack,” says Kieran O’Sullivan, National Sales Manager at Rutherford & Meyer. “Proud to be the only NZ made rice crackers, made by yours truly in our Wellington factory! We have four delicious flavours for every occasion, Sour Cream & Chives, Original, BBQ, and Salt & Vinegar. “These crackers are made Nielsen Scantrack Data Total Supermarkets - MAT to 05/11/2017 Val Sales

Val % Chg YA

Total Snackfoods

$415,828,782

8.0%

Nuts

$91,114,902

5.8%

Popcorn Make At Home

$12,064,867

35.4%

Popcorn Ready to Eat

$12,017,003

-0.5%

Bread Snacks

$10,018,456

7.7%

Meat Snacks

$8,397,131

9.8%

Cereal Snacks

$7,283,943

14.5%

Ethnic Snacks

$3,815,609

34.9%

Vege Chips

$3,438,209

-6.8%

Other Snacks

$1,837,153

14.7%

T. Nutritional Sports Bars/Protein Bars

15,287,733

12.4%

T. Total Lunchbox Snacks

$159,452,276

8.4%

T. Muesli Bars

$39,248,578

-2.1%

T. Nut Bars

$34,575,636

3.1%

T. Baked Bars

$31,033,106

7.5%

T. Fruit_Novelty

$16,537,688

9.4%

T. Snack Balls

$15,457,752

104.5%

T. Cereal Bars

$9,283,182

2.9%

T. Total Biscuits Incl Rice Wafer Cakes

$416,641,705

3.6%

T. Cracker Biscuits

$115,962,480

7.9%

T. Rice Crackers

$43,454,820

-5.5%

T. Rice Wafers/Cakes

$11,626,236

-4.3%

from the highest quality ingredients and contain no artificial flavours, colours or preservatives. “We here at Rutherford & Meyer strive to make mouth-watering bites for people just like you, so join us and elevate your taste,” says O’Sullivan.

General Mills General Mills owns and sells Nature Valley and Fibre One bars in New Zealand. Marketing Manager, Keezia Haste, says: “Our key launches in the past year have been Nature Valley Protein bars and a new brand Fibre One™, which is all about permissible indulgence, being a brownie format with only 90 calories. Overall Nature Valley is in really strong growth with value growth at 18% vs YA and latest quarter being even stronger at 35.2%. “Fibre One is a great success bringing new news to the weight management segment, which has been in steady decline over the last few years. Fibre One Chocolate is the #1 selling sku within weight management, suggesting that there is still a strong demand for a great tasting product that supports calorie management,” says Haste. She adds: “We are so excited about this brand and how consumers have responded to it and will be going on TV in January for seven weeks to tell more consumers about it! In January 2018, we will be introducing a Nut Butter range which consists of two crunchy biscuits with oats that are 100% whole grain, containing a deliciously smooth filling of either real peanut butter or almond butter. Premium and delicious tasting ingredients perfect for a more indulgent moment. We have also just launched a new flavour for Fibre One; Salted Caramel. This has only just gone into market, but consumer response so far is extremely promising! “Products with added benefits (protein, less sugar, fibre) are hot on consumers’ lists! What we absolutely know though from all the research we have done is that ‘Taste is king’!”

FMCG BUSINESS - DECEMBER/JANUARY 2018

[ feature ]

BACK TO SCHOOL

Fresh lunchbox inspiration

hat’s popular for children’s lunchboxes this summer? The lunchbox category has seen good growth in 2017, up 10% vs YA*, says Julia Turner, Senior Brand Manager

at Prolife Foods Limited. She explains: “Some of the growth is driven by the introduction of more wholesome, innovative products in the category, as consumers look for more better-foryou options for the lunchbox. Vegetable snacking and the shift towards wholefoods are strong consumer trends that are relevant in the market and not slowing down. “Mother Earth lunchbox products continue to grow strongly, up 17.2% vs YA*, driving category growth. Mother Earth favourites Baked Oaty Slices are the market leader in the category, and with the introduction of two new flavours, Very Berry and Black Forest, they continue to grow, up 13.7% vs YA*. “Shaking up the category this year, Mother Earth launched the innovative product range, Vege Fruit Sticks, into the kids baked bar segment in February. The idea is based on Mother Earth’s successful Fruit Sticks range with the addition of real vegetable puree. The challenge with introducing vegetables into a lunchbox product, was giving parents the confidence

to purchase knowing their kids would eat and enjoy it. We gathered research using consumer testing via Colmar Brunton to ensure kids loved the product, as well as airing a personable TVC to support the launch, showing kids eating our new Vege Fruit Sticks without realising they were actually eating veggies, because they tasted good,” says Turner. “Mother Earth Vege Fruit Sticks have incrementally grown the Kids Baked Bar segment, this is up +41.4% in unit sales for the MAT to 01/10/17*. The addition of Vege Fruit Sticks to the Mother Earth baked bars offering has not affected the existing Mother Earth Fruit Sticks range, which are still showing strong growth, up 13.7%, for the same period.” She adds: “Mother Earth’s Gluten Free Nut Bar range offers something delicious for the adults. As the consumer trends of plant-power and protein are still popular in the market, we launched a tasty new flavour, Superseeds, in April. The range is showing good growth up 8.4% vs YA*. It’s an affordable gluten-free snacking option.” *IRI-Aztec MarketEdge TKA NZ Grocery Nutritious Snacks - Dollars & Units Growth MAT 01/10/2017

New Scooby and Minion gummy snacks Topline are excited to introduce their newest range of kid’s lunch box snacks. The gluten free, 99% fat free Scooby-Doo and Minion shaped gummy snacks are made from natural colours, flavours and 70% fruit juice. Each box contains 8 x 20g bags of Iddy Biddy snacks and is perfect for lunch boxes or as a treat. For more information about the licenced range of Back to School snacks contact your Topline Representative or phone 09 419 4061. FMCG BUSINESS - DECEMBER/JANUARY 2018

[ feature ]

PRICING, FOR WHAT IT’S WORTH

Lew Bentley’s notes from the retail front line, with help from the team at Nielsen.

can’t believe that I bought a $600 backgammon set. But somehow I did. Sure, I enjoy playing backgammon, and they can be beautiful things. But $600! How did that happen? The clues sit within this overview of that vital organ of business success: pricing.

How we’re supposed to think about pricing

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

The default belief about pricing, thanks to the economist in us all, assumes that price is a relatively linear reflection on quality. Cheap should mean inferior quality. Expensive should mean better quality. The relationship between pricing, supply and demand is also assumed to be relatively linear. A high price should mean lower demand and vice versa. Similarly, plentiful supply is assumed to place downward pressure on pricing, while scarcity drives price upwards. The exception to this is with products that are elastic, where changes in price have a disproportionate impact on demand. Giffen goods (e.g. essential items flying off the shelves during a natural disaster) and Veblen goods (rare or luxury items people must have whatever the price) are examples of when price increases create a disproportionate increase in demand. Another aspect of the rational view of pricing is that we assume that it is better to pay a low price, and paying more than you need to is an inferior purchase decision. In everyday discussions and research focus groups you’ll commonly hear people

FMCG BUSINESS - DECEMBER/JANUARY 2018

proudly say things like: “I only buy what’s on special”, or “I buy whatever is cheapest”. This makes us feel good as a sensible and worthy consumer, but in general it is a poor guide to the reality of our behaviour. If it was, markets would only support minimal price differences and the cheapest products would lead every market. We would all be driving around in cheap cars like the Chery J3 or the Suzuki Alto, there would be no delicious premium chocolate, and there would certainly be no demand for a $600 backgammon set.

How we actually interpret pricing A lot of work is done by behavioural economists on the irrationality of pricing and how people use pricing to make purchase decisions. One of the key insights is that people interpret prices using relativities rather than absolutes. In other words, we negotiate meaning of a price based on context, not on the price per se. Consequently, the more human view of pricing is a more subjective and imperfect sense of value. That value calculation can be influenced by a wide variety of factors that might be concrete and factual, or wildly emotional. It is entirely up to us as individuals. We might compare a range of product/price alternatives alongside one another and do a mental trade-off calculation. We might have a sense of price shifts over time (last week it was expensive but today it is better value). We might place a premium on things we love and happily pay whatever we have to. Price relativities are contextualized and learned.

For example, we might be very sensitive to small price shifts in small prices of a dollar or two for fresh fruit. But we may easily accept much larger price changes for other products like phones or cars. This innate sense of relative price comparison is a type of ‘Goldilocks’ effect. We find what is right for us with the aid of guiding reference points or anchors. Too hard, too soft, or just right is replaced by price points, reference value items and value bundles. Things like the 99 cent loaf of bread, the ‘two for the price of one’, or the $2 shop sign tell us that there is value to be had. Price point anchors are also convenient tools for us to negotiate and justify our decisions with ourselves, and others. Consider a $9.99 block of luxury chocolate. If you really want the chocolate the cent under $10 makes it seem much better value. But if you are not emotionally committed then you see it as an expensive $10 block. Over time we build up a set of price acceptability thresholds for different categories and how we relate to them. Whether it is shoes, phone plans, or lamb roasts, we acquire an understanding of what we think is acceptable to pay for different products we buy. From individual to individual this will vary. Some people’s expectation of 4-person family’s weekly grocery bill might be $200, but for others it might be $400, yet both might be satisfied. ‘Free’ is a magic word with pricing. It has an almost primal response that makes us go weak at the knees. It reduces the risk of purchase to zero. ‘Buy one, get one free’ is far more effective proposition than ‘two for the price of one’, free samples are a great tool to drive trial, and it is true that free floor mats can sell cars. A sage car salesman once explained to me that most people hate the negotiating process with salespeople. They often feel out of their comfort zone but are obliged to haggle, and feel that when they buy a car they should come away with a good deal. Good salespeople understand this. So they will hold fast on the price of the car, but give away free car mats in order to give the customer the feeling of a good deal but retain their margin on the car. That way everyone walks away happy.

Pricing works in diﬀerent ways Pricing is a powerful tool that should be aligned to the strategy of a business or brand because it is instrumental in how people determine value. How pricing plays out can vary immensely.

For many years The Warehouse consistently promised customers bargains, thereby building a retail empire based on low cost, high volume and a wide range. Categories that are relatively stable, in constant supply, and are widely available tend to have fairly stable pricing, with more modest fluctuations. Consumer thresholds of price acceptability are relatively narrow because people know what they should pay today and tomorrow. Most fast moving consumer goods are like this. In contrast, categories that are in scarce supply, when there is uncertainty can fluctuate wildly based on what people must pay today, knowing that the product might not be there tomorrow. Auctions work like this, sometimes driving property or Art prices up spectacularly beyond expectations. In consumer goods categories there is a lot of debate over the merits of deep discounting compared with maintaining everyday low prices. Loss leading discounts can attract attention and connect people to higher margin supplementary purchases, or simply drive foot traffic. An everyday low price approach is designed to reassure customers that they always pay less. Some categories will support massive premiums beyond the cost of manufacture based on some form of meaningful differentiation. Indeed, the allure of being ‘reassuringly expensive’ can be a powerful driver of demand. In the fashion industry a $4,000 Gucci handbag might be beyond the reach of most, but a $150 Gucci T-shirt might be great value, even though it might cost only $10 to make. In contrast, pricing can be used as a category disruptor; when brands spectacularly redefine value. Some prominent examples of this include Spec Savers, Grab a Seat and AS Colour. Each, in their own way has tilted demand in their favour by recalibrating people’s price acceptance thresholds. The evolution of ecommerce has brought some great pricing innovations, especially in the realm of choice architecture – or how product/price offers are presented. We have all seen the software as a service freemium options presented on websites that look confusing at first, then we are happily nudged in favour of the ‘most popular’ option. Technology is also allowing more personalized and flexible pricing models. For example, it is now possible to buy car insurance policies priced according to how

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WE MIGHT PLACE A PREMIUM ON THINGS WE LOVE AND HAPPILY PAY WHATEVER WE HAVE TO.”

you use your vehicle as measured by a black box device installed in your car. Uber has disrupted the taxi market with low prices, and they have also innovated with demand-driven surge pricing. Some companies use pricing to mask profit gouging. They might keep the price steady but reduce the size of the product or use cheaper and inferior ingredients. This is a questionable approach and can result in public relations disasters and consumer backlash.

Promotional Paradise In New Zealand we are heavy hitters when it comes to promotions. Comparative data from Nielsen shows that a whopping 55% of all supermarket purchases are bought on promotional pricing*. This is significantly higher than Europe (28%) and on par with the UK, which sits at 54%. Looking closer, there has been a recent softening of promotion selling (down 1.6% on 2016) driven by an increase of ‘everyday low price’ pricing strategies which results in an increase of non-promo sales. The frequency of product promotions overall is increasing in supermarkets, with an average time spent on special price of 69% compared to 64% of the time in 2016^. While the frequency is increasing the overall depth of promotional pricing is stable at around 10%.

Promotions can be great at driving a spike in short term volume, but they should not be seen as a long term driver of growth, especially in terms of profit. Promotions can, however, become something of a sales drug habit. While retailers and suppliers can overuse promotions in the hope of continued short term results, this can create a shopper immunity in which shoppers learn to only shop by promotion and the effect is to make the discount price the normal price. The nature of different categories makes them more or less responsive to promotional pricing, and consequently, different price/promotion strategies should be adopted. According to Nielsen there are four types of pricing strategy depending upon the elasticity, or responsiveness of shoppers to price changes. The key is to understand where your brands and items, as well as your competitor’s brands and items sit on this framework, and then to use the right price/promotion for you.

So, how about that backgammon set then?

The $600 backgammon set was handmade by Manopoulos in Greece out of walnut and maple with mother-of-pearl pieces and a special carry-case. I found it after an exhaustive search locally and online. After looking at dozens of designs that weren’t quite right, I discovered ‘the one’. The Goldilocks instinct in me was truly exhausted. I had developed an acute sense of value anchors: the wood, the finish, the materials, the design and price points. By this stage there was Highly price sensitive no chance of me being satisfied Shoppers highly sensitive to shelf and with a common garden set. I had promotional pricing discovered something of rare beauty and I was emotionally Drive volume by lowering shelf price and involved. My price acceptability have infrequent deep discounts as well threshold was free-wheeling and my pricing relativities had become fairly irresponsible. I had to have it. Negotiating the value with Better for EDLP myself I concluded that the price Shoppers respond to shelf prices but not was actually very reasonable promotional discounts compared to what I could have paid for higher specified sets, and Lower everyday price to increase I conveniently suppressed the volume, and don’t invest in promotional foreign currency difference and discounts shipping costs. I clicked and waited in delicious anticipation. Elasticity High

Low

Price Promotion Elasticity

High

Nielsen Every Day Analytics Matrix Deeper, fewer promotions Shoppers highly sensitive to promotional discounts but not shelf prices Maintain/increase regular shelf price but invest in occasional deep discounting to spike volume

Stop promoting Shoppers have low responsiveness to shelf and promotional pricing Drive value by increasing shelf price, don’t do price promotions

Low

Shelf Price

*Source: Nielsen Homescan

Source: Nielsen Every Day Analytics

FMCG BUSINESS - DECEMBER/JANUARY 2018

^Source: Nielsen Scantrack

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Special Awards: The Spirit of Innovation Award, sponsored by NZ Life & Leisure, will go to the entry showing excellent Kiwi ingenuity. Awards will also be made for Outstanding New Product, Outstanding Design, Outstanding Drinks Product plus an Outstanding Sustainability Award for the food or drinks producer championing sustainability.

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Countdown Appeal raises $1.26 million The Countdown Kids’ Hospital Appeal has raised an impressive $1.26 million for 13 children’s wards nationwide, with all proceeds used to buy much needed medical equipment to help kids around the country. Countdown stores across New Zealand organised local events to bring the community together and help raise funds for the appeal. The events included a country dance night in The Countdown Kids Hospital Appeal cheque Kaiapoi, joining a family presentation for Hawke’s Bay Hospital. motorbike and car poker run in Waikiwi, dressing up for a charity ball in Whanganui, and organising a classic ‘grocery grab’ in Blockhouse Bay, Auckland. Countdown Kids Hospital Appeal spokesperson, Ruth Krippner, says the success of this year’s campaign is thanks to the enthusiasm and ongoing support of local communities across the country.

“Every year there are thousands of Kiwi kids that need hospital care, which is always an extraordinarily hard time for children and their families. The success of this year’s campaign shows a desire within communities to help these children in their time of need and get them home,” says Krippner. This year some of the equipment on the children’s wards wish lists included a Cardiovascular Ultrasound machine to measure heart rate, a Colposcope for internal examination, a Neonatal Video Laryngoscope to examine the throat and a Wireless Fetal Monitoring System to monitor fetal heart rate. The Appeal aims to contribute to the growth and development of New Zealand by supporting the health of its future – Kiwi kids.

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Nestlé commits to cage-free eggs Nestlé has announced its commitment to eliminating the use of caged eggs from its worldwide supply chain by 2025. The policy will cover 189 countries including Australia in a bid to improve the lives of tens of millions of hens. Products across various Australian Nestlé brands including Lean Cuisine, Nesquik and Kit-Kat will be affected by the policy. A statement from the company said: “To help drive welfare improvements for egg-laying hens, our goal is to use only cage-free eggs for all of our food products globally by 2025. This includes all shell eggs and egg products (e.g. whole egg powder and liquid, egg white powder and liquid) directly sourced as ingredients by Nestlé. “In Europe and the US, we will make this transition by the end of 2020. For the rest of the Americas, the Middle East, Africa and Oceania

we will do so by 2025 and in Asia we will aim for the same transition period as conditions allow. Animals Australia Farmed Animal Advocacy Jesse Marks said the company commended Nestlé’s decision for the animal welfare policy. “As the largest food company in the world, this decision is a signal to the rest of the food industry that cage eggs don’t have a future,” he said. “Australian consumers are concerned about the cruelty egg-laying hens suffer in cages, with a recent Roy Morgan poll showing that 67 percent of Australians are more likely to support a company that has a policy not to use or sell cage eggs. This decision by Nestlé demonstrates how leaders in the corporate sector can listen to their customers and respond.” Source: c-store.com.au

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[ events ]

FGC CONFERENCE 2017 FGC Chief Executive Katherine Rich summarises the highlights.

here’s long been debate about the phrase “the customer is always right”, as first coined in 1909 by Harry Selfridge, the founder of Selfridge’s department store in London. Down the years it’s been used by businesses to convince customers they will get good service and employees to give good service. But some believe it can lead to worse service. For example, causing resentment among employees when management sides with customers, and giving irritating customers an unfair advantage over employees. And sometimes customers are just plain wrong. One phrase there can be no argument about, though, and which should not be confused with Selfridge’s maxim, is that businesses should “always listen to the customer”. This seems to be more pertinent than ever in this age of tighter margins and increasing competition, and it was a recurring theme by many speakers at the NZ Food and Grocery Council’s annual conference, held recently at Te Papa in Wellington. During a question and answer session that I conducted with Foodstuffs’ Steve Anderson and Chris Quin, a delegate asked about their response to the likely arrival of Amazon. Chris Quin said it was important for Foodstuffs to focus on their own business, “because if you’re not doing what customers want then you deserve to lose.” Innovation, but not too much or too little, was important: “There’s a place in the middle which is based on genuine customer demand” and if you can successfully execute it “that’s gold”.

FMCG BUSINESS - DECEMBER/JANUARY 2018

Gerry Lynch, General Manager of Mars NZ, talks about his company’s culture turnaround.

Consumer signals Clive Stiff, CEO of Unilever Australia and NZ (and Chair of the Australian FGC), in an address about the state of the A$127 billion Australian food and grocery sector, talked about the need for suppliers to find new convenience products and to “move their products up the value chain and be attuned to consumer preferences and signals”. Likewise, Andrew Keaney, CEO of T&G Global (formerly Turners

[ events ] & Growers), said listening to “the voice of the consumer”, and understanding and responding to their wants, was paramount; nutritionist Nikki Hart talked about the need to meet consumerled demand for healthy foods; David Shukri, of sales strategy company IRI, talked about changing consumer dynamics and how “the power is moving to the shopper”. So it went on. The Foodstuffs session was one of the most popular of the two days. Apart from questions from me about their performance and operation, the CEOs answered anonymous questions sent by delegates via a special app, on subjects that included the Nielsen supplier survey, the rise of online shopping and click and collect, an update on the Pams range, ullage, next steps for New World’s Fresh Collective stores in Auckland, and more. They were also asked what suppliers could do to add value to what is already in their stores. Steve Anderson said they had so many products in so many categories that “we can’t be experts in everything, so we’re open to listening about category insights. We’re open to give things a go. Suppliers need to give us more.”

FGC Chief Executive Katherine Rich (R) interviews Foodstuffs South Island CEO Steve Anderson (L) and Foodstuffs North Island CEO Chris Quin.

Aldi Buying Director Dean Fleischmann gives a rundown on the supermarket chain’s rise and rise.

Aldi’s invitation

Vasa Fia Collins, Diversity Advisor at Diversity Works NZ during a workshop on the value of building a diverse workplace.

David Kirk of Bailador and KiwiHarvest discusses attributes for success in life and business.

Perhaps the most anticipated speaker was Aldi Buying Director Dean Fleischmann. He was making the first appearance in New Zealand of an executive of the German supermarket giant, which in 16 years has raced to No 3 in Australia on the back of A$8 billion in sales from 600 stores (with a further 100 stores planned in the next three years). He immediately answered everyone’s burning question: yes, they had recently looked at the New Zealand market but concluded that the business benefits would be greater from an expansion into South Australia and Western Australia. “So, for the moment, we’re not coming. But our business will continue to review that from time to time.” The good news is that they’re continuously looking for premium products, and there’s an open invitation for New Zealand companies to get in touch if they can benchmark the No 1 product in their category in the Australian market. “If you can prove to us that you do, or exceed that, we really need to talk to you fast.” Now there’s a challenge.

WE’RE OPEN TO GIVE THINGS A GO. SUPPLIERS NEED TO GIVE US MORE.” FOODSTUFFS SI CEO, STEVE ANDERSON

FMCG BUSINESS - DECEMBER/JANUARY 2018

[ events ]

T&G supports Hort competition T&G Global has announced it has signed an extended five-year sponsorship agreement with the Royal NZ Institute of Horticulture Education Trust, which runs the Young Horticulturalist T&G Executive GM Andrew Keaney with the organisers of the Young of the Year competition. Horticulturist of the Year competition. T&G has supported the competition since 2005, but the growing need for more talent in the industry has led T&G to double its financial support through to 2022. Andrew Keaney, T&G’s Executive General Manager, New Zealand produce, says T&G considers competitions like the Young Horticulturalist of the Year to be incredibly important. “They’re vital for developing and recognising the next generations’ skills and knowledge to ensure that as an industry, we are collectively supporting our future leaders.” Keaney says the competition also supports the growing horticulture industry which is now worth $8 billion. “As an advocate for over 1500 growers and 120 years’ growing experience, T&G understands the challenges our industry faces from adverse weather to finding talent. The Young Horticulturalist competition helps address the latter by supporting emerging talent across the spectrum of growing from wine to flowers and fresh food. As a major employer, we take our role in enabling and attracting young people into horticulture seriously and hopefully our increased support of the competition will further assist the growth required to ensure we reach the industry’s combined target of $10 billion in value by 2020.”

MAY

2 SOUTH ISLAND WINE & FOOD FESTIVAL Hagley Park Christchurch, NZ www.winefestival.co.nz

2 OUTSTANDING NZ FOOD PRODUCER AWARDS Fresh Factory Auckland, NZ https:/outstandingfood producer.nz/

JANUARY 2018 25-27 CENTRAL OTAGO PINOT NOIR CELEBRATION Queenstown, NZ www.pinotcelebration.co.nz

FEBRUARY 2018

An alpine-style cheese made by the UK’s Lynher Dairies Cheese Company has been crowned World Champion Cheese at the 30th annual World Cheese Awards. Cornish Kern is a buttery medium-hard cheese, with a deep aroma and caramel notes. It rose to the top among 3,000 entries that were judged in a single day in London. The awards formed part of this year’s Taste of London Festive Edition and saw entries from a record-breaking 35 different countries. The World Cheese Awards 2017 is the planet’s biggest ‘cheese-only’ competition - no yoghurt, cream, butter or other dairy are entered. The winning Cornish Kern now takes its place in the history books alongside previous champions of the largest cheese-only awards scheme on the planet, having impressed the World Cheese Awards’ international panel of experts at every stage of the judging process. Cornish Kern was awarded 75 points out of a possible 80 by the Super Jury of 16 judges, just ahead of an Italian Blu Di Bufala made by Quattro Portoni Caseificio in second place. In joint third, were an Austrian Capellaro from Almenland Stollenkaese and a South African Dalewood Huguenot made by Dalewood Fromage.

FMCG BUSINESS - DECEMBER/JANUARY 2018

DECEMBER

28-31 ISM & PROSWEETS Cologne, Germany www.ism-cologne.com www.prosweets.com

World Champion Cheese 2017 revealed!

Events 2017/8

10 MARLBOROUGH WINE & FOOD FESTIVAL Brancott Vineyard Blenheim, NZ www.wine-marlborough-festival. co.nz

APRIL 6-8 THE FOOD SHOW Horncastle Arena Christchurch, NZ www.foodshow.co.nz/whats-on/ christchurch-2018/

9-10 CLEAN NZ ASB Showgrounds Auckland, NZ www.cleannzexpo.co.nz 11-13 THE FOOD SHOW Westpac Stadium Wellington, NZ www.foodshow.co.nz

JUNE 24-26 FINE FOOD NZ ASB Showgrounds Auckland, NZ www.finefoodnz.co.nz

JULY 26-29 THE FOOD SHOW ASB Showgrounds Auckland, NZ www.foodshow.co.nz

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

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Out & About

urist of the Year The 2017 Young Horticult rew Keaney of T&G And with ling Hick Shanna from AGMARDT and chke Nits colm Mal Global, Supplies. tfed Frui from ce Max Spen

Boh Runga and Kathry n Wilson at the ASB Classic 2018 me dia launch.

Celebrity Chefs Judge George Calombaris and Ray McVinnie at the Taste of Auckland Awards.

SNAP & WIN!

Amber Peebles and Brooke Howa rd-Smith enjoyed cool drink at the a Moet Ice Summ er sessions.

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 the draw to win a Marcel’s Crêpes and Blinis pack, including a $10 Countdown voucher for some delicious toppings to add the ﬁnishing ﬂourishes to your creation. See marcels.co.nz for more inspiration.

Just email your high res image with a caption to trubanowski@intermedianz.co.nz FMCG BUSINESS - DECEMBER/JANUARY 2018

www.theshout.co.nz December/January 2018

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[ editorial ]

CONTENTS Celebrating a great 2017 with cider!

December/January 2018 4

Industry news

NZ Boomers and Millennials: Think diﬀerent, drink diﬀerent Insights from Nielsen

New Zealand Cider Fest a success! A round-up of the day, plus trophy winners from the 2017 NZ Cider Awards

The great cider boom John Oszajca explores how far Kiwi cider has come

In-cider knowledge Q&A with DB cider maker and Chairman of the Fruit Wine & Cider Makers Association, David Sax

Summer beers with a fruity twist There is far more to fruit beer than the traditional lemon-infused lagers, writes Neil Miller

Aromatic enhancements Tasting notes from Cameron Douglas MS

Meet the winemaker Introducing some of New Zealand’s winemaking experts

11 The Shout Editor Charlotte Cowan

THE SELL-OUT success of The NZ Cider Festival this year is testament to just how popular this fruity beverage is becoming in New Zealand, especially over the summer months. So as a salute to cider, we’ve dedicated this December/January issue of The Shout NZ to everything cidery. From The NZ Cider Festival and 2017 NZ Cider Awards, to emerging trends, new innovative products and a Q&A with DB cider maker and Chairman of the Fruit Wine & Cider Makers Association, David Sax - you can find it all on pgs 7-11. Looking back on 2017, it has been an amazing year full of growth and positivity for The Shout NZ and the team would like to thank you all for your continued support. It has been a pleasure meeting so many of you along the way - we love hearing your stories and following your journeys in the ever-changing world of the New Zealand liquor industry and we look forward to an exceptional 2018. If you don’t already follow us on Facebook and Instagram, you can find us @theshoutnz and don’t forget to sign up to our eNewsletter at www.theshout.co.nz. Have a very Merry Kiwi Christmas and a safe summer holiday and we’ll see you next year!

Along came a cider Take your pick from these ciders to sip on this summer

Editor’s picks

Behemoth Tropical MoFo Pale Ale A not-so-beery combo of tropical New Zealand hops, pineapple, mango, and passionfruit, this fruity Pale Ale might not tickle everyone’s fancy but it’s certainly a refreshing beer to quench your thirst on a hot day. For more on fruit beer, head to pgs 12-13. Babich Marlborough Pinot Noir Rosé 2017 This single vineyard wine displays the typical attributes of a wellcrafted traditionally made Rosé – aromatic, with a soft creamy palate and a refreshing dry finish. A perfect wine from New Zealand’s most experienced family-owned winery for a sunny summer’s afternoon! For more information, visit www.babichwines.co.nz Harrington’s Cider Cider flavours have come a long way over the years and Harrington’s have really pushed the boat out with their refreshing summer flavours, including Lemon Meringue, Pineapple & Coconut and Raspberry Scrumpy. The perfect cider to accompany a relaxing day on the beach! For more sumptuous ciders for summer, head to pg 11.

MANAGING DIRECTOR-PUBLISHER Dale Spencer dspencer@intermedianz.co.nz PUBLISHED BY The Intermedia Group Ltd 505 Rosebank Road, Avondale Auckland, 1026, New Zealand ph: 021 361 136

EDITOR Charlotte Cowan ccowan@intermedianz.co.nz ph: 021 774 080 SALES MANAGER Sam Wood swood@intermedianz.co.nz ph: 021 256 6351

FMCG BUSINESS: THE SHOUT - DECEMBER/JANUARY 2018

[ news ]

Record attendance at ProWine China ProWine China has established itself as the pre-eminent annual exhibition in Mainland China, with a large increase in both visitors and participation from global wineries. This year’s event, which concluded last month in Shanghai, featured almost 700 exhibitors from 39 countries and more than 14,000 trade visitors, which was an increase of 14.3% on the previous year following a higher level of marketing to regional cities and provinces. Fleur McCree from Vinultra Australian participation increased by one-third compared to 2016, with 40 brands on show from 20 different wine regions. While New Zealand showcased just one local exhibitor, Vinultra. Fleur McCree from Vinultra told The Shout’s James Wells she was proud but surprised to be the only wine company representing New Zealand.

Don’t miss your chance to talk directly to an audience of over 8,000 restaurant, café and foodservice businesses in one place! New Zealand’s biggest liquor trade event is back as part of Fine Food New Zealand 24-26 June 2018.

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FMCG BUSINESS: THE SHOUT DECEMBER/JANUARY 2018

“China is New Zealand’s sixth strongest export market and there is a very strong trend towards value versus volume,” she says. “The unfortunate thing about the New Zealand wine industry is that it is more or less self-funded, so we don’t have government support to come to these types of shows - we have to choose where we spend the money nowadays. The US is New Zealand’s biggest market right now and Australia is still a dominant market, so there is only so much money to go around.” ProWine China is aligned with the annual ProWein exhibition in Düsseldorf which will be next held from 18-20 March 2018 in Germany. Over the next 18 months there will be three Asian based ProWine shows in Singapore (24-27 April 2018), Shanghai (13-15 November 2018) and Hong Kong (7-10 May 2018). The global head of ProWein, Marius Berlemann, said he was happy with the significant growth in the number of international wine producers and suppliers. “The Chinese wine business is currently experiencing a shift in demand, away from only brands and pricing towards other elements including country and region of origin, grape variety and cultivation methods,” he says. “Opportunity continues to flourish on China’s maturing wine market, achieving sustained growth year on year. At the same time, Chinese consumers are eager to discover wines from all parts of the world.”

Chardonnay shines at the Air NZ Wine Awards A Marlborough Chardonnay took out the top prize at the 2017 Air New Zealand Wine Awards in Hawke’s Bay last month. The Isabel Chardonnay Marlborough 2016 won the prestigious Air New Zealand Champion Wine of the Show trophy, as well as the Rabobank Champion Chardonnay trophy, at an Art Decoinspired awards dinner. Isabel Estate Marlborough Chair of Judges Warren Gibson said the Isabel Chardonnay 2016 Chardonnay Marlborough 2016 was a very classy example of the Chardonnay in this year’s competition. “It has a beautiful balance of components with a rich long finish,” he says. “It’s packed with flavour but still maintains a remarkable lightness on its feet.” Isabel Estate Vineyard planted their first vineyards in Marlborough in 1980 and they have some of the oldest Chardonnay vines in the region. Chief Winemaker Jeremy McKenzie says Isabel Estate Vineyard’s philosophy on working the land is simple. “Respect the soil where the grapes grow and allow the unique characters of each vineyard and variety to be expressed in the final wine,” he says. The second highest accolade of the evening, the O-I New Zealand Reserve Wine of the Show trophy, went to the Dashwood Pinot Noir Marlborough 2016.

[ news & industry insights ]

Babich Wines releases Forbidden Vines BABICH WINES has announced the release of Forbidden Vines, a premium wine range which includes Marlborough Sauvignon Blanc and Pinot Noir Rosé. Forbidden Vines was created for a predominately female audience with distinct ‘wow’ factor. “Launching Forbidden Vines will enable us to open new sales channels and appeal to new audiences whilst ensuring that we don’t de-value our Babich Classics range or the broader Babich brand,” says David Babich, Chief Executive Officer. “With this product, we decided to challenge tradition and break the wine label mold through the use of funky, innovative design.” The Sauvignon Blanc features the Queen of Hearts on its bottle design and the Pinot Noir Rosé features the Weeping Rose. “We believe the wine in the pack over-delivers on the price point, punching above its weight,” says Babich. Forbidden Vines is very different for our family brand, it’s not the modern classic.” Forbidden Vines targets Marlborough Sauvignon Blanc drinkers both in New Zealand and global markets with its fashionable look and shelf ‘pop’. For more information, visit www.forbiddenvines.com

The IWSR’s 2017 top 100 wine brand list revealed THE IWSR has revealed its top 100 wine brand list for 2017, with Castel Frères named the largest still wine brand in the world. The list, compiled by the leading provider of data and analysis on the global beverage alcohol market, places the French brand in the top spot for the second year in a row, despite strong volume gains from other brands in the top five. Barefoot (US) and Concha y Toro (Chile) posted the strongest gains in the top 10, both increasing by more than one million nine-litre cases. No New Zealand brands made the top 10 but Australia’s Yellowtail just made the list, taking the number 10 spot. For more information, visit www.theiwsr.com.

NZ’s first craft brewer, Terry McCashin NEW BREWERIES open every month, but when Terry McCashin opened Mac’s Brewery in 1981, it made history. It was the first independent brewery in New Zealand, and started the craft brewing industry. In 1981 there were just two breweries in New Zealand – Lion Martin Craig and DB – dominating every part Brewers Guild of New Zealand of the industry. Between them www.brewersguild.org.nz they controlled malting, beer production, bottle supply, and almost every pub and liquor store in the country. Terry was an unlikely duopolybuster. An ex-All Black, he simply wanted to buy a pub, but was frustrated at the prices Lion and DB could afford to pay to extend their domination. He had no big business backing, and certainly had no plans to lead a craft brewing revolution. Sensing widespread frustration with the duopoly, Terry and his wife Bev bought the Rochdale cidery in Nelson. They brought in brewer Jim Pollitt from the UK, and started making beers distinctly different to standard New Zealand draught styles that were the only choice at the time. Mac’s beers were based on traditional ales, batch-brewed, and all met the Bavarian Purity Laws - using just yeast, malt, hops and water. This set the basis of craft brewing in New Zealand. The big boys responded by restricting access to beer bottles, so Terry commissioned his own – those distinctively textured Mac’s bottles, still used today, are based on the original design. Lion and DB tried hard to keep the upstart new brewery out of the market, and Terry enjoyed playing the underdog. Mac’s big break came when brewery workers went on strike, leaving pubs and bottle stores high and dry. “Send us beer!” was the message, and Terry had new and loyal customers. Others saw it was possible to take on the duopoly, and soon small breweries were operating across the country. The duopoly was broken, and after Terry McCashin’s first step the range of beers available in New Zealand would continue to innovate and grow. Terry McCashin passed in October in Nelson, aged 73. Martin Craig is a beer writer, journalist and publisher of www.beertown.nz Original beer stories. Served fresh. When Terry McCashin opened Mac’s Brewery in 1981, it made history.

FMCG BUSINESS: THE SHOUT - DECEMBER/JANUARY 2018

[ category insights ]

NZ BOOMERS AND MILLENNIALS: THINK DIFFERENT, DRINK DIFFERENT Nielsen explores how the age of Kiwis affects our drinking habits. NEW ZEALANDERS love a good drop - 78% of us, to be exact, are drinkers of some variety. Baby Boomers (born between 1946 1964) and Millennials (born between 1980 - 1996) collectively account for 58% of the drinking population. Millennials are a slightly larger group in total, at 1,080,000; while Boomers account for 987,000 drinkers. Boomers and Millennials have different occasions for drinking. Boomers are more likely to enjoy a drink to unwind after work - more than one-in-five (21%) say this is a frequent habit. Boomers are also 19% less

likely than the drinking population to say they only drink on the weekend. In contrast, Millennials are 22% more likely to only drink on the weekends. Drinking occasions are far from the only difference between the two generations. Millennials seek a variety in their beverage choices, the majority (65%) drink more than three types of alcohol and 15% have an alcoholic beverage repertoire that ranges across all five categories (wine, beer, cider, RTDs and spirits). It’s not surprising then that almost one-in-two Millennials like to try new or different beers, they’ve been faster

FMCG BUSINESS: THE SHOUT DECEMBER/JANUARY 2018

in the uptake of cider and are more likely to say that they like to drink craft beer. On the other hand, almost half of Boomers drink a maximum of two beverage types with wine and beer the favourites. A quarter choose to pay more for premium quality wine. These generations are making different shopping choices too. Boomers are adding their beverage of choice to their grocery shop - of those who have bought alcohol in the last month (off-premise), 38% bought exclusively from the supermarket (24% more likely than the alcohol buying population). Millennials sit at the other end of the scale with 61% of buyers shopping exclusively at liquor stores. Interestingly Boomers spend more on alcohol than Millennials spending $7 more per week on alcohol than Millennials (or $378 more per year) and Boomers are 13% more likely than Millennials to say they are in financially comfortable circumstances. The differences in how Boomers and Millennials consume and shop for alcohol illustrates how important it is for both suppliers and retailers to understand the profile and the needs of the people who are purchasing your brands and shopping for alcohol in your stores. Millennials desire for variety presents the challenge of how to be the drink of choice given their wide alcoholic repertoire and their appetite for what is new and exciting. On the other hand, Boomers have established tastes and know what they like, they are spending more on alcohol and are in a more comfortable financial situation the opportunity is to trade them up to more premium offerings. By Helene Maurer, Associate Director, Nielsen; and Carly Holloway, Manager, Nielsen. For more insights, visit www.nielsen.com

[ cider ]

NEW ZEALAND CIDER FEST A SUCCESS! THE 2017 New Zealand Cider Festival was a huge success this year, with a sold-out venue and a sunny Nelson day to showcase 17 cider producers and 75 cider varieties. More than 2000 people attended the festival at Founders Heritage Park in Nelson last month, including visitors from Germany, the US, the UK and Australia, putting numbers up 83% overall from the inaugural NZ Cider Festival in 2016. “The event exceeded my expectations on all levels and in only its second year, sold out,” says Ali Lawley, Festival Organiser and Nelson Venues Director. “Great weather, great vibe, fantastic attendance and lots of happy cider makers.” And following last year’s sustainability success, the event again achieved its sustainability target, with no disposable cups in use and only half a wheelie bin of general

waste created. “With a crowd in excess of 2000, it is a spectacular result,” says Lawley. The evening before The NZ Cider Festival, the results of the 2017 New Zealand Cider Awards were announced, with Peckham’s Cider taking home the Champion Cider Trophy for the third year in a row with its ‘Wild All The Way’ cider. The NZ Cider Awards are the only national awards dedicated

to cider, and entries are judged against international criteria by a panel of cider judges with extensive expertise in the field. For a full list of medal winners, visit www.cidernz.com/awards.

NZ Cider Awards Trophy Winners Champion Cider Peckham’s Cider - Wild all the Way Contemporary NZ Cider Paynter’s Cider Ltd - Paynter’s Cider 2015 Traditional Cider Peckham’s Cider - Wild all the Way Cider with Fruit McCashin’s Brewery - Rochdale Three Berry Cider

Perry/Pear Cider Peckham’s Cider - Moutere Perry Cider with Hops, Spices, Botanicals or Honey Peckham’s Cider - Kingston & Alford Specialty Cider Peckham’s Cider - Ice Cider

FMCG BUSINESS: THE SHOUT - DECEMBER/JANUARY 2018

THE GREAT CIDER BOOM Kiwi cider has come a long way from the limited options of just a few years ago, writes John Oszajca.

WHILE CIDER may technically have more in common with wine, it’s a beverage that has always been, somewhat inexplicably, linked to beer when it comes to competitions, ordinances, and even serving traditions. Fruity, affordable, and always easy to drink, cider is the perfect option for those with gluten sensitivities, hop allergies, or just looking for a quaffable pint of something more ‘sessionable’ than wine and less bitter than beer. It shouldn’t need saying, but cider is an alcoholic beverage that is made by fermenting apple juice. While cider-making likely dates back thousands of years, the earliest record of fermenting apples into alcohol dates back to 55 BC, when the Romans invaded England and found that cider was already being enjoyed by the locals. Fast-forward a few thousand years and cider remains a popular alternative to beer and wine. Typically ranging between 1.2% and 8.5% ABV (though sometimes stronger), cider is particularly popular in the UK, as well many Commonwealth countries, such as Canada, Australia and, of course, New Zealand. For a beverage that is typically made with just two primary ingredients - apples and yeast - cider can be surprisingly varied. It can be pale, amber, cloudy, clear, still, sparkling, sweet, dry, and/ or flavoured with fruits, vegetables, spices, and even hops. The vast majority of cider sold in New Zealand is a style known as New World cider. This means that rather than using traditional cider apple varieties (which are rare in New Zealand), 8

New World ciders are, for the most part, made with common eating apples. They can sometimes lack the complexity of more traditional English and French farmhouse ciders however, with more cider being sold in New Zealand than ever before, we are seeing a growing number of boutique cideries that are embracing both New World innovation and traditional production methods.

How far has cider come? Not long ago, there were only a handful of cider makers in New Zealand. According to Hamish Jackson, General Manager of Gisborne’s Harvest Cidery which produces ciders including Scrumpy, Harvest and Bulmers, the company had more than 80% of the market just 11 years ago but were making less than a million litres of cider. However, a rise in the popularity of cider and an influx of new products on the market has driven the production volume up to an all-time high for New Zealand. According to Stats NZ, the increase in volume of locally-produced cider from 2010 to 2016 was estimated to be 8.2 million litres. “[About] five years ago, New Zealand cider really took off with the introduction of fruit-flavoured ciders, where previously [the market] had been driven by mostly apple and pear derived ciders,” says Jackson. “But these new ciders brought in a lot of the younger drinkers that had previously been more exposed to RTDs. That opened up a whole new door to them.”

FMCG BUSINESS: THE SHOUT DECEMBER/JANUARY 2018

A RISE IN THE POPULARITY OF CIDER AND AN INFLUX OF NEW PRODUCTS ON THE MARKET HAS DRIVEN THE PRODUCTION VOLUME UP TO AN ALL-TIME HIGH FOR NEW ZEALAND.”

[ cider ] As many of those younger drinkers are maturing and becoming swept up by the craft beer movement, the market has seen a growing interest in traditional, and sometimes more exotic ciders, which are often less sweet.

Emerging trends in cider “The exciting thing about the ‘New World’ is that we don’t really have an established style or rigid regulations, so innovation is happening on all fronts,” says Paul Paynter from Paynter’s Cider. “Cider makers are exploring the extremes of what is possible [and] from this, there will be some big winners and some appalling losers. The winners will be copied and maybe bettered by competitors and this innovation and competition is spiralling the industry upwards. “A big barrier we all face is that many discerning palates have decided that cider is sweet, simple and not worthy of further consideration [but] nothing could be further from the truth,” says Paynter. The trends to watch for in New Zealand’s

Small batches of cider made with traditional apple varieties are in demand

cider industry can be expected to mirror those of the craft beer industry. Small batches of cider made with traditional cider apple varieties, such as Kingston Black, Sweet Alford, Broxwood Foxwhelp and Knotted Kernel, are in demand; drier English and French-style ciders are on the rise; and you can expect to find more and more

Authentic craft cider.

cider packaged in cans in the months and years ahead. There is also a growing interest in premium, more alcoholic ciders, iced ciders, and apple wines. And, while fruit ciders are certainly not falling out of fashion, the fruits used seem to be increasingly varied and exotic. Whereas berry-flavoured ciders seemed to dominate the shelves just a few years ago, we are now seeing ciders infused with the likes of passionfruit, pineapple, watermelon, coconut, chocolate, and even cucumber. Above all else, it would seem that New Zealand’s cider consumers are maturing. Much like we have seen in the craft beer market, consumers are increasingly interested in the story behind what they drink. However, while the word ‘craft’ tends to refer to batch size and connote flavour in the beer industry, in cider ‘craft’ translates more closely to being rooted in tradition (process, variety, and credentials). If New Zealand is to truly become a world-class cider producer, the transformation to watch will certainly take place in the orchard.

2017 Trophy Contemporary NZ Cider

FMCG BUSINESS: THE SHOUT - DECEMBER/JANUARY 2018

[ Q&A ]

IN-CIDER KNOWLEDGE The Shout NZ talks all things cider with David Sax, Chief Cider Maker for DB Breweries’ Redwood Cider Co and Chairman of the Fruit Wine & Cider Makers Association. In your opinion why are more than a third of Kiwis yet to try cider? Mainstream cider is very new to New Zealand and I think that these things take time to gain popularity. It’s also easy for consumers to make assumptions, like ‘it will be too sweet’ or ‘cider is for girls’. But there are plenty of options out there, including drier styles, such as the newly launched Monteith’s Goldsmith Dry Cider. At the end of 2013, over half of Kiwis hadn’t tried cider, so many more people are trying cider each year. Monteith’s

How did you get into cider making? As a young man I used to tinker with making beer, wine and cider in the farmhouse kitchen and that interest grew into a career. I went on to study winemaking and viticulture at Lincoln University and subsequently enjoyed 18 years as a winemaker in New Zealand and Europe. In 2011, cider was starting to gain popularity in New Zealand and I was given the fantastic opportunity to head the cider-making team at DB’s Redwood Cidery in Nelson. We produce brands including Old Mout, Monteith’s, Orchard Thieves and Rekorderlig. How does the Kiwi cider market compare to the likes of the UK? Cider has been a significant player in the UK drinks business for a long time; for literally hundreds of years. However, cider is a reasonably new phenomenon in New Zealand and Kiwis are still learning about cider and 10

when it can be enjoyed. I expect cider will grow in popularity over the coming years as consumers discover that there are numerous styles to suit all tastes and occasions. How do Kiwi tastes in cider differ from other countries? Due to the apples we use, such as Braeburn and Royal Gala, most ciders made in New Zealand are aromatic and fruit driven, compared to countries where cider apples are prevalent. Having said that, there are also some world-class traditional ciders being produced here too. New Zealand boasts an incredibly diverse range of styles and sweetness in ciders, so there really is something for everyone.

Top-selling Monteith’s Crushed Apple Cider

What is your best-selling cider and why do you think that is? Monteith’s Crushed Apple Cider is our top-selling cider - it is so refreshing and showcases those beautiful aromatic New Zealand apples.

FMCG BUSINESS: THE SHOUT DECEMBER/JANUARY 2018

Sparkling Brut What is your favourite Cuvée Cider cider and food pairing? My favourite cider at the moment is the Monteith’s Sparkling Brut Cuvée Cider – a celebration-style cider. [It] goes so well with smoked salmon, scallops and other festive nibbles.

How should you consider glassware and temperature when serving or drinking cider? Cider isn’t as finicky with glassware compared with wine – it’s even fashionable to enjoy drinking cider out of jam jars! As a general rule, any beer or wine glass works well for most ciders, and our sparkling celebration cider is best served in a flute. Serving cider at fridge temperature is suitable for most brands, and on a hot summer’s day, pouring cider over ice is definitely worth a try. What are your predictions for the Kiwi cider industry in the coming years? My crystal ball sees craft cider gaining a greater market share, just as we have seen with beer. I also think the apple cider category will continue to grow, with its exciting and growing repertoire of styles.

[ what’s hot ] Bite into an awardwinning Honesty Box Cider this summer. Honesty Box is batch brewed using only single varietal apple juice – no concentrates or blends. Available in three delicious apple varieties: Braeburn - Gold Medal winner and Best in Class at the 2017 New Zealand Cider Awards; Granny Smith - Silver Medal winner and Best in Class; and NZ Rose – Bronze Medal winner (all 4.5% ABV). RRP $5.99 Contact your Independent Liquor Area Sales Manager or call (0800) 420 001 Peckham’s Wild All The Way (6.2% ABV) is a blend of three wild ferments that have been maturing for over a year; a rich caramel Kingston Black single variety, a gentle yet tannic bittersweet blend, and a complex oak fermented and matured Perry. Named NZ Champion Cider, Gold Medal winner and Best in Class at the 2017 NZ Cider Awards, Wild All The Way is a rich Kiwi cider with deep English cider country roots. RRP $4.99 Contact Hop and Vine Distribution: orders@hopandvine.co.nz, (03) 348 8278

ALONG CAME A CIDER Searching for that special cider to sip on over summer? Take your pick! Crafted by the whanau of Tohu and Aronui wines, Tutū Cider (5% ABV) is the younger, sprightlier sibling of the family. Four ‘little Tutūs’ have ventured off and will be travelling around the country in cheeky four packs and will be helping New Zealanders explore their inner tutū this summer. Stay tuned! RRP $19.95 (four pack) www.tutucider.co.nz

Lewis Road is capturing the best of New Zealand summer in a bottle by expanding from pastures to orchards and launching a new range of premium apple ciders. Lewis Road Orchard Premium Apple Ciders (4.5% ABV) are made with certified-organic apples from Bostock’s orchards in the sunshine-filled Hawke’s Bay and infused with delicate blossom flavours - including orange, apple and peach blossom – to elevate them from good to sublime. RRP $5.99 www.lewisroad.co.nz

Escape the rigours of the season with a few riggers of Harrington’s honestly crafty cider in Lemon Meringue (6% ABV), Pineapple & Coconut Island Time (5% ABV), Raspberry Scrumpy (8.2% ABV) and NZ Apple Scrumpy (8.2% ABV). Way less awkward than sitting in Santa’s lap, you can send your wholesale orders to orders@harringtons.nz - and the flavour is more full than Santa’s sack. Wishing you a very scrumpy Christmas. RRP $11.99 www.harringtons.nz

If you like blackberries but don’t like prickles, Good George Blackberry Cider (4.5% ABV) is for you. They sent their brewers deep into the brambles searching for the darkest, plumpest berries and several hours later they emerged, covered in deep scratches and berry juice and ready to turn their heaving basket of fruit into something wonderful. Hey, there’s no need for you to feel bad, sometimes loves hurts. Now drink up, or all that pain will be for nothing. RRP, $14.99 www.goodgeorge.co.nz

FMCG BUSINESS: THE SHOUT - DECEMBER/JANUARY 2018

SUMMER BEERS WITH A FRUITY TWIST There is far more to fruit beer than the traditional lemon-infused lagers. Award-winning beer writer Neil Miller finds out more about the veritable cornucopia of fruits that Kiwi brewers are using in innovative ways.

Neil Miller is an awardwinning beer writer. To contact Neil regarding beer features or samples, please email him at beerlytweeting@gmail.com

BREWERS WERE adding fruit to beer long before they were adding hops. The Oxford Companion to Beer notes that fruit was traditionally utilised to add more fermentable sugar (which increased the strength and nutritional value of the beer), to mask often inconsistent and ‘less than ideal’ flavours, and as a natural preservative. Today, fruit beer has developed into an increasingly popular style of brew which uses both fruit and hops, and often other ingredients as well. The Companion says that “when added properly by a skilled brewer, fruit can help create colours, flavours and aromas unobtainable by grain alone”. Belgium is the country historically most associated with fruit beer but American, Australian and Kiwis brewers are embracing the style as their customers become more adventurous. New Zealand brewers make beer with a shopping list of fruits, including strawberries, raspberries, grapefruit, mandarin, boysenberries, juniper berries, Yuzu (a Japanese citrus fruit), pineapple, persimmon, lime, peaches and, in one memorable instance, Pineapple Lumps (though they probably do not count as fruit, although many people want to believe they should). Fruit beer has been embraced by brewers both big and small. The large brewers have tended to focus on quenching lagers, such as DB Export Citrus, DB Export Citrus, Lemon and Lime, Speight’s

FMCG BUSINESS: THE SHOUT DECEMBER/JANUARY 2018

Summit Citrus and Speight’s Summit Peach. However, Mac’s recently released Mac’s Bohemian Raspberry Wheat Beer which is an adventurous and unusual ale style. Sales are reported to be strong. Craft brewers have tended to make ales with fruit. In particular, fruit IPAs and fruit sour beers are rapidly gaining in popularity. At the 2017 Brewers Guild New Zealand Beer Awards, beers such as Invercargill Boysenbeery (a Kiwi twist on the traditional Belgian cherry beer), Croucher Brewing Grapefruit Warrior (Grapefruit IPA), Duncan’s Juniper IPA and Good George Blueberry Gose (an innovate use of berries in a sour, salty beer style) all medalled. The three brewers interviewed for this article all make fruit beer and all intend to make more in the future. They are optimistic about continued growth in the fruit beer market segment. The increasing number of brewers producing fruit beer indicates there is sector confidence in rising consumer demand and customer receptiveness to new and often very different flavours. Andrew Childs is founder and head brewer at Behemoth Brewing Company. His 195cm frame inspired the brewery name and his nickname ‘The Beer Giraffe’, which now appears on the bottle labels. Topically, one of his latest beers was called ImPEACHment Sour Ale, which had a

[ beer feature ] caricature of the United States President on the can. ImPEACHment is a kettle soured ale with the addition of Golden Queen peaches. It was the follow-up to his popular pre-election brew, titled Dump the Trump. Part of Childs’ core range now is Behemoth Tropical MoFo, a Pacific Pale Ale which combines New Zealand and Australian hops with pineapple, mango and passionfruit. To say it is ‘fruity’ would be a massive understatement. “[I tend to] use fruit which emulate or compliment the hop flavours we are getting from the hops we are using anyway, it is a way to play with all the flavours,” he says. Behemoth also occasionally produces Billion Dollar Grapefruit American IPA and intends to do so more often going forward. Childs believes that “grapefruit and hops make great bedfellows”, as many hops already have grapefruit flavours and aromas. Basically, Childs is convinced that “fruit and hops are fun!”. He also promises they have more fruit beers in the pipeline as Behemoth expects fruit beer sales to continue to grow but warns they will not continue to grow forever. Asked about the challenges of brewing with fruit, he quipped that it was getting people like this writer, not a noted fan of the style, to drink them. Childs was making the broader point that it can be harder to get consumers to try beers which are so different to what they are used to in ‘normal’ beer. Shigeo Takagi (almost universally known as Shiggy) is a young brewer at the helm of Funk Estate Brewing. Based in Mount Maunganui, Funk Estate beers are easily recognisable for their frankly funky branding based around film star Pam Grier, and catchy names such as Yes, Yes Y’all (a Session Pale Ale) and Super Afro-Disiac (an Imperial Stout reportedly infused with a ‘myriad of aphrodisiacs’). Their most popular fruit beer is Funk Estate Jungle Boogie, a Sour Ale made with blood oranges. It started life as a one-off brew for a Te Aro brewer Karl Hayes

Shigeo Takagi, brewer at the helm of Funk Estate Brewing

THE INCREASING NUMBER OF BREWERS PRODUCING FRUIT BEER INDICATES THERE IS SECTOR CONFIDENCE IN RISING CONSUMER DEMAND AND CUSTOMER RECEPTIVENESS TO NEW AND OFTEN VERY DIFFERENT FLAVOURS.”

festival in Australia but proved so popular that it has joined the regular range. Shiggy also made a collaboration beer with Doctor’s Orders Brewing which used sun-dried Yuzu. This exotic ingredient also appears in Garage Project Wabi Sabi Sour, a beer that also includes honey melon. Funk Estate is releasing Cosmic Hustle, a new strawberry yoghurt Sour Ale at the end of 2017. Shiggy believes the market is growing because people are just more open-minded now. “Back in the days when people referred to fruit beers, they generally meant the Belgian beers which were really sweet,” he says. “Now, beers like fruit IPAs and fruit sour beers are not too sweet. They can be challenging but consumers like to be challenged more with their flavours.” The other challenge is sourcing ingredients as its diﬃcult to find blood orange in New Zealand. Shiggy uses a dry frozen blood orange powder, a product developed by an innovative New Zealand company. Karl Hayes, brewer at Te Aro Brewing, now located in Upper Hutt, agrees that sourcing seasonal fresh fruit can be very hard. One of his most popular beers is Te Aro Grapefruit Double IPA, a strong but nuanced pale ale which has just been launched in bottles. To make it they have to purchase a quarter of tonne of grapefruits, get them zested and juiced, and then frozen. “There is a bit of planning involved and we have to be organised, but it is just the same as any other ingredient really,” he says. Hayes sees the fruit beer market as increasing. “When we made this beer, we were definitely one of the first grapefruit beers in New Zealand. Now there would be at least five or six more,” he says. Hayes believes adding fruit is “actually not a very expensive way of getting an unusual taste into a beer”. Even this fruit sceptical beer writer has become an unashamed fan of Grapefruit IPAs, so there is Funk Estate Jungle Boogie hope for everyone.

Behemoth MoFo

Te Aro Grapefruit Double IPA

FMCG BUSINESS: THE SHOUT - DECEMBER/JANUARY 2018

[ tasting notes ]

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

All wines have aroma, a bouquet or package of smells that can be natural to the grape or enhanced through winemaking intervention, such as with the use of oak or extended time on lees post fermentation. For example, Chardonnay is not an aromatic variety and requires skilled winemaking to draw out aromas and flavours that make the wine style popular. Pinot Noir is another example of a non-aromatic variety – it is also subject to the skill of winemakers. Riesling is an aromatic variety because its smells directly reflect the grape the wine is made from and does not require oak to make the taste popular. There is, however, a particular grouping of wines known as ‘aromatics’ which are defined by their natural and highly volatile scents. These scents occur naturally in the grape and can be recognised easily, as well as amplified in a finished wine. For example, Gewürztraminer fits into the aromatics category easily because of its exotic perfumes of roses or lavender, white-fleshed fruits and sometimes a tropical fruit flavour, such as lychee. The word ‘aroma’ is originally from the Greek language and means ‘spice’. However, as with many languages, words evolve and become part of other languages - so too has the word ‘aroma’. Today the word aroma basically means ‘pleasant smell’ (as opposed to unpleasant smell). In wine language,

FMCG BUSINESS: THE SHOUT DECEMBER/JANUARY 2018

this assists tasters in defining wine from young through old, or how winemaking has produced certain recognisable aromas. Aromatics, on the other hand, have very distinctive natural smells that separate them from other wine styles. Aromatics are excellent choices for by-the-glass programmes, as they often over deliver on smell, taste and texture. They can also be fabulous with food, such as Gewürztraminer and Duck Confit. The following are some of the classic aromatic wines: Albariño – stone fruit, such as peach and citrus. On the palate the wine starts off peachy and juicy then turns to citrus flavours such as lime blossom, lemon; elevated acidity and a dry finish. Riesling – always floral, suggesting white rose or jasmine, lemon or lime on cooler climate examples, mandarin and lime-flower, cold peach tea, green apple and honeysuckle. Muscat Blanc (aka Moscato) – intense orange blossom, pears and lemons, Orange Piko tea. Müller-Thurgau – green table grapes, white peach, geranium and pear. Torrontés – smells like Muscat, tastes like Gewürztraminer, with the acidity and intensity of Riesling. Pinot Gris is a semi-aromatic variety with aromas and flavours of white fleshed fruits such as nectarine and Asian pear, canned pears and yellow apple.

[ tasting notes ]

PEGASUS BAY ‘ARIA’ LATE PICKED WAIPARA VALLEY RIESLING 2014 Yellow and gold in appearance with a bold and very aromatic bouquet – lemon, peach, apple, roses and honeysuckle lead the aroma package. On the palate – off-dry with plenty of sweetness, contrasted immediately with concentrated acidity then flavours of lemon, orange, honey, peach and apples. A delicious wine with complexity and great length. Points 96 RRP $39.00 Distributor: EuroVintage Phone: (03) 314 6869 www.pegasusbay.com

GIESEN ‘GEMSTONE’ LIMITED RELEASE MARLBOROUGH RIESLING 2017 Very fragrant and quite complex with aromas of flowers, apples, citrus fruits and spice. On the palate – off-dry, but with a focused acidity, the wine finishes almost dry. Flavours of lemon and ginger tea, apple and honeysuckle. A lovely example with concentration and length. Drink now and through 2028. Points 95 RRP $19.99 Distributor: Giesen Wines Phone: (03) 344 6270 www.giesenwines.co.nz

ASTROLABE ‘WREKIN VINEYARD’ MARLBOROUGH CHENIN BLANC 2016 Classic aromas of fresh and baked apple with a layer of sweet citrus and gentle floral scents; a minerality of wet stone follows. On the palate – quite particular with flavours that reflect the nose, plus a hint of wood spice and complexity alongside a light lees and ginger note also providing texture. Just off-dry and with warming alcohol; plenty of acidity and lengthy finish. A wine that develops well in the glass. Drink now and through 2025. Points 93 RRP $25.00 Distributor: Astrolabe Phone: (03) 577 6794 www.astrolabewines.co.nz

ASTROLABE ‘VALLEYS KEKERENGU COAST’ MARLBOROUGH PINOT GRIS 2016 Delightful fragrant and gently aromatic bouquet with scents and flavours of white spiced tree fruits – pear and apple centric, but also sweet white floral and a distinctive minerality of wet stone. Youthful and refreshing acidity then an emerging Asian pear note and honeyed white fleshed fruits. Drink now and through 2022. Points 93 RRP $25.00 Distributor: Astrolabe Phone: (03) 577 6794 www.astrolabewines.co.nz

ASTROLABE ‘ASTROLABE FARM’ MARLBOROUGH DRY RIESLING 2016 Lovely bouquet of grapefruit, apple and lemon zest; some white flower notes and stony mineral core. On the palate – crisp, juicy, fleshy and dry; high acidity and a little residual; sugar adding weight and texture. Lengthy youthful finish. Drink now and through 2026. Points 93 RRP $25.00 Distributor: Astrolabe Phone: (03) 577 6794 www.astrolabewines.co.nz

ASKERNE HAWKE’S BAY VIOGNIER 2016 Aromatic, varietal and very engaging bouquet with aromas and flavours of apricots and peaches laced with citrus peel and flowers; a cereal-like mineral flavour adding depth and complexity. Medium+ acidity and alcohol add warmth, weight and generosity. Quite a lengthy finish, balanced and well made. Drink now and through 2021. Points 92 RRP $22.90 Distributor: CoPilot Phone: (09) 412 9137 www.askerne.co.nz

FMCG BUSINESS: THE SHOUT - DECEMBER/JANUARY 2018

[ tasting notes ]

SEIFRIED NELSON RIESLING 2017 Fragrant, varietal and forward bouquet of Riesling with aromas and flavours of tangerine and lemon, a squeeze of lime and suggestions of rose. Off-dry style with some residual sweetness and with plenty of crisp youthful contrasting acidity this wine has great balance and length. A gentle steely mineral layer adds complexity. Drink now and through 2024. Points 91 RRP $17.00 Distributor: Seifried Estate Phone: (03) 544 5599 www.seifried.co.nz

GIESEN MARLBOROUGH RIESLING 2016 Floral, fruity and very fragrant with lemon and crisp red apple aromas; loads of mineral scents led by wet stone; a whisper of Kaﬃr lime leaf and tangerine. On the palate – noticeably off-dry with contrasting acidity; flavours of red apple and citrus return. Fleshy and plump textures. Wellmade and totally drinkable today. Enjoy now and through 2024. Points 90 RRP $16.99 Distributor: Giesen Wines Phone: (03) 344 6270 www.giesenwines.co.nz

FMCG BUSINESS: THE SHOUT DECEMBER/JANUARY 2018

YEALANDS ESTATE SV AWATERE VALLEY PINOT GRIS 2017 Floral, fragrant and quite aromatic with soft pure fruit aromas of apples and pears, gentle white spice and a kiss of citrus and quince. On the palate – fresh, crisp, fruity and just dry; plenty of acidity adding texture and freshness. Balanced and well made with a decent length and finish. Drink now and through 2021. Points 90 RRP $24.95 Distributor: Yealands Wine Phone: (09) 920 2880 www.yealands.co.nz

SEIFRIED NELSON WÜRZER 2017 Very aromatic with muscatlike aromas centering on ripe tropical fruits, white fleshed stone fruits and tropical flowers – like frangipani. On the palate the flavours are the same, with a tangerine addition; plenty of acidity, some residual sweetness and lengthy finish. A rare find in New Zealand. Drink now and through 2020. Points 89 RRP $25.00 Distributor: Seifried Estate Phone: (03) 544 5599 www.seifried.co.nz

[ people ]

MEET THE WINEMAKER Introducing some of the talented people behind New Zealand’s most successful vineyards. Ben Glover

Malcolm Rees-Francis

Winemaker for Zephyr Wines Witnessing his father Owen, a fourth generation farmer, sell the family dairy herd in 1985 and then the embark on planting grapes on their Dillons Pt farm in 1988 ignited Glover’s passion for making single vineyard wines from this family site. As Chief Winemaker, Glover has led some of the most exciting global New Zealand wine brands over the last two decades and in 2007, he launched his own family wine brand, Zephyr. In 2016, Glover left his ‘day job’ to work full-time making sustainable single vineyard aromatic varieties with from the family farm. Glover has as intimate knowledge not just of his native Marlborough region but also throughout New Zealand’s wine regions. He was an inaugural Len Evans scholar in 2001, Chair of Pinot Noir NZ 2017 and is currently the Chair of the Bragato Wine Awards. Glover has more than 20 years of experience as a national and international wine judge, which is testimony to his dedication to quality wine - both as a winemaker, winegrower and as an appreciative wine drinker.

Winemaker for Rockburn Wines Being born into a South Canterbury sheepfarming family meant Rees-Francis knew he didn’t want to be a farmer for the rest of his life, so it was off to Otago University to study Microbiology. Four years later, Rees-Francis knew he didn’t want to be a scientist for the rest of his life, but hey, winemaking sounded like fun! Seven years in the industry later, he discovered his Great-Great-GreatGrandfather was from a winegrowing family in the Azores; and his draw to the world of wine suddenly made a lot of sense. Equally strong was the draw to the dusty tors and burns of Central Otago, where Pinot Noir rules with an iron fist (although it wears a velvet glove). First as Assistant Winemaker at lauded Felton Road, and now as solo Winemaker at Rockburn, ReesFrancis continues a tradition of excellence, with the occasional break for rocking out in the barrel hall.

Inus van der Westhuizen

Stu Marfell

Winemaker for Hunter’s Wines South African born van der Westhuizen grew up on a wine farm in the Western Cape. He gained a Diploma in Cellar Technology at Elsenberg Agricultural College in Stellenbosch, then went on to work as Assistant Winemaker in the Stellenbosch and Franschhoek wine regions. A winemaker at Hunter’s since 2007, van der Westhuizen works alongside Chief Winemaker, James Macdonald. He oversees all aspects of the wine production - from harvest to bottling. Over his 10 years at Hunters, van der Westhuizen has developed a keen eye for sparkling wine and masterminds the production of MiruMiru, Hunter’s Methode Traditionelle. Spending time with his wife Lizl and their three daughters are a priority for van der Westhuizen when he is not head-down in winemaking and he also loves the outdoors and is often found kayaking, or enjoying the abundant cycle trials around Marlborough.

Chief Winemaker for Dashwood Wines Stu Marfell grew up on a 2,000-acre farm a few miles from Dashwood in Marlborough. When not drenching and shearing sheep, Stu and his three brothers could be found swimming and fishing in the Awatere River. “Wine was only for special occasions, but good food was always on the menu,” says Marfell. In 2003, after earning his degree in Viticulture and Oenology from Lincoln University in Christchurch, Marfell landed the assistant winemaker’s position at Dashwood. He became winemaker in 2007. “Marlborough is a stunning place. We have a dry, windy, temperate climate with beautiful autumns. Our cool nights help retain acid and flavor which is so important for Sauvignon Blanc,” he says. Marfell met his wife Emily through the Wairau Rowing Club in Marlborough. Both are exercise and outdoor fanatics and travel junkies. Stu also plays a mean ukulele.

FMCG BUSINESS: THE SHOUT - DECEMBER/JANUARY 2018