FMCG - February 2017 by The Intermedia Group

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February 2017 – Volume 4 – No 1

PLUS! LEADERS FORUM ■ HEALTH & BEAUTY ■ BEST DRESSED SALADS ■ D NEW ZEALAN

NEW ZEALAND’S LARGEST FMCG AND LIQUOR AUDIENCE

contents

February 2017

Up Front

Events

Editor’s note

Search for the best butchers in NZ

Industry news

The Grocery Charity Ball is back

Leaders Forum Inspiration and predictions for the year ahead

The Food Show 2017 with Annabel Langbein

Events Calendar

Social Sphere Industry members spotted out and about

Category Insights 19

Salads & Dressings

Eggs & Poultry Products

Specialty Breads

The Shout

Regulars 16

Gear New technology for work, rest and play

In Season Fresh produce in store

Health & Beauty New personal care, wellness, skincare and haircare products

Good Business 40

Industry news

Feature Fairtrade - Rise of the conscious consumer

Proﬁle Chocolate Therapy with Schoc Chocolates

Proﬁle Westgold offers category growth with award-winning butter

Legal advice Maintenance and repair – are you liable as a tenant?

Health and Safety

Editor’s note and industry news

Industry news and events

Out & About

The Shout Leaders Forum

By George, it’s good! Q&A with Good George Brewing Chief Executive Race Louden

The Asian beer boom

Diﬀerent strokes for diﬀerent folks Nielsen NZ explains diverging craft beer growth drivers across retailers

Central Otago Pinot Noir Tasting notes from Cameron Douglas MS

The craft of Kosher wine

49 FMCG BUSINESS - FEBRUARY 2017

[ editorial ]

Inspiration, predictions and new trends

elcome back! I hope you all had a great start to 2017. This new year is going to be very interesting for sure. How will the sudden change in New Zealand’s leadership and general political uncertainty following Brexit and the US Presidential election affect our local and the global market economy? Our industry is facing some major challenges right now, so we have curated a special Leaders Forum edition for you this month with inspiration and fresh thoughts for 2017 from a select group of industry experts. Find out on pg 9-15 what the Chief Executives of the FGC, BusinessNZ, Countdown, Foodstuffs, Nestlé , Prolife and Buy NZ Made advise for the year ahead. We also bring you legal advice, exciting product launches, Health & Beauty updates and the latest category insights in this issue. I enjoyed catching up on a whole lot of reading over the holidays and found some fascinating predictions for new trends to watch. In the UK for example, Polynesian-style food, watermelon juice, Matcha tea and charcoal bagels seem to be the next must-have items on selfrespecting foodies’ shopping lists. Meanwhile, some local mavens pondered whether turmeric and anti-inflammatory foods could be our next panacea. Others suggested that paleo will be ‘out’ and dairy products will be on the rise . . . and apparently we will see it all unfold on Instagram, or spelled out by the ever-growing community of online bloggers. Nobody knows exactly what the next diet fad will be, but provenance, sustainability, health and wellness are clearly more important than ever. If you ask me, quality chocolate enjoyed in moderation is essential for a balanced diet and general sanity. You will find a taste of chocolate therapy on page 44. The occasional glass of wine, served with a nutritious meal, good company and lively conversation will hopefully never go out of fashion. That’s why we’ve also sourced expert wine tasting notes, Asian-style beers and much more for you in The Shout, on pages 51-67. Enjoy this issue,

D NEW ZEALAN

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February 2017 – Volume 4 – No 1

ON THE COVER Home-grown Goodness Natural Beauty Lab is celebrating its second birthday and has four new products coming to market. See on page 36 why the company has even more reasons to celebrate.

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Good as Gold! You have always known how special our Giesen Estate Riesling is. Because of you, it is the No.1 Selling Riesling in New ZealandÂš And guess what, the Judges love it too!

30 Gold Medals New Zealand Riesling Winery of the YearÂ˛

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New York International Wine Competition 2016. Summary of awards Giesen Estate Riesling has won since 2012 vintage. Current 2015 vintage has won 3 Trophies (2x Air NZ Wine Awards, 1x New World Awards) and 3 Gold Medals. 2

[ news ]

New 3D sweetener is vegan and sugar free Lampados International Ltd. has launched Liteez, a next-generation sweetener, at the ISM show in Cologne, Germany. This dual-purpose meringue kiss sweetener can melt in your coffee or hot drink, or can be enjoyed as an ultra-low calorie sweet treat. This new sweetener delivery system, shaped like a meringue, is egg free, sugar free, and vegan. Put two meringue kisses in your coffee, stir, and enjoy all the sweetness of sugar. Two Liteez contain about two calories (instead of 20 calories in one teaspoon of table sugar). “The idea was to craft a whole new concept for a healthier, tasty, and indulgent sweetener - to simply create a new experience for coffee and tea or as a casual snack,” says Noam Kaplan, CEO of Lampados. This meringue kiss is a plant-based snack, free from allergens such as eggs, gluten, lactose, or nuts, and contains only six simple ingredients. “Many consumers crave something sweet both in and with their coffee,” notes Kaplan. “Our new kiss fulfills both needs for

a delicious, low-cal sweetener or as an indulgent dessert, without compromising on taste and while helping with weight management.” “The real challenge was to create a tasty meringue kiss without eggs or sugar — two common indispensable ingredients for making a baked meringue, and that provide its texture, shape and taste,” explains Kaplan. “In Liteez, the fibers create the texture, yet it is stable and crunchy with great flavour.” The manufacturing site is based in Israel and has BRC Grade A certification.

Focus on sustainability at New World Papakura New World Papakura has opened its doors recently, built just 100 metres up the road from the old one, on East Street in Papakura’s CBD. Owner-Operator Peter Lynch says: “The new store brings more choice, great prices and the same quality personal service our customers expect and deserve.” Dozens of new jobs have been created, too, with up to 45 more staff depending on the time of year. The new store is also more ecofriendly, with features such as the CO2 refrigeration, energy efficient lighting and rain water harvesting systems. “Sustainability is a major focus for us. As well as providing a soft plastics recycling bin at the front of our store, we’ll continue to offer New World’s discount for those who bring their own reusable bags. We are also aiming to divert at least 80% of our waste away from landfill,” says Lynch. “Everything has been designed with customer convenience in mind: more carparks, wider aisles, way bigger range in fresh foods, and more checkouts, including self-serve, to make shopping quicker.”

FMCG BUSINESS - FEBRUARY 2017

Wesfarmers overtakes Woolies Wesfarmers has overtaken Woolworths to become the 21st largest retailer in the world by revenue. This makes Wesfarmers the largest Australian-owned retailer in Australia, reveal recent figures from Deloitte. Walmart remains top of the global rankings with an estimated revenue of $480 billion. According to Deloitte’s 2017 Global Powers of Retailing Report, the contrasting performance of both Australian retail giants in the hardware sector, highlighted by the closure of Masters, caused Woolworths to drop to rank 23 globally, whereas the success of Bunnings propelled Wesfarmers up two ranks. Every year, the report highlights the 250 largest retailers in the world. From its origins in 1914 as a Western Australian farmers’ cooperative, Wesfarmers has grown into one of Australia’s largest listed companies. Headquartered in Western Australia, its diverse business operations include Coles supermarkets, liquor, hotels and convenience stores; home improvement; office supplies; K-Mart and Target department stores; as well as an industrials division with businesses in chemicals, energy and fertilisers, industrial and safety products and coal. Wesfarmers is one of Australia’s largest private sector employers.

[ news ]

World’s biggest tobacco company set to form British American Tobacco (BAT) will soon control the world’s largest portion of the tobacco market, when it assumes full control of US company Reynolds American in a takeover bid worth $US49.4 billion. The merger will bring popular brands such as Newport, Kent and Pall Mall (Reynolds) under the same roof as Lucky Strike, Rothman’s, Camel and Dunhill. The transaction is expected to close during third quarter 2017. BAT already owns 22.2% of Reynolds, having been a shareholder since 2004, and had been in talks with the company for several months to negotiate a buyout of the remaining stake. Last November Reynolds rejected a $US47 billion offer from BAT, which has stated it stands to make $US400 million worth of savings from the deal. BAT Chief Executive Nicandro Durante said the company was very pleased to have reached an agreement and looked forward to making the offer to shareholders. “Our combination with Reynolds will benefit from utilising the best talent from both organisations. “It will create a stronger, global tobacco and NGP business with direct access for our products across the most attractive markets in the world.

Leaf processing for British American Tobacco in Brazil.

“We believe this will drive continued, sustainable profit growth and returns for shareholders long into the future.” Reynolds American Executive Chairman Susan M. Cameron indicated a strong push towards vaping and other modern tobacco products, stating the merger would allow formation of an industry leader that will focus on innovation and brand building. “This combination will create a truly global tobacco company with multiple iconic tobacco brands, and a world-class pipeline of nextgeneration vapor and tobacco-heating products,” she said.

Mondelēz sells Vegemite to Bega

Mondelēz has reached an agreement to sell most of its grocery business in Australia and New Zealand to Bega Cheese for $460 million AUD. The transaction adds the iconic Vegemite brand and other well-established grocery brands to Bega’s portfolio. Included in the sale are other products that use the Kraft brand under license, such as peanut butter, nut spreads, processed cheese slices, ambient cheese spread, mayonnaise, parmesan cheese, Kraft 8

FMCG BUSINESS - FEBRUARY 2017

Easy Mac and Kraft Mac & Cheese. Bega will receive a license to the Dairylea brand for use in Australia and New Zealand. The Philadelphia business is not included in the deal. The Port Melbourne manufacturing site will transfer to Bega as part of this agreement and approximately 200 staff who spend most of their time working on this part of the business will be offered roles on comparable terms with Bega. The transaction is expected to close in the coming months. The move enables Mondelēz International to further focus its portfolio and drive profitable growth by investing in its core snacks categories and Power Brands, including Cadbury Dairy Milk chocolate and Oreo biscuits. Meanwhile, the two Mondelēz stars have just combined in a delicious new brandmance. The Cadbury Oreo Easter Egg is now available in New Zealand stores, joining the traditional range of Cadbury Easter chocolates.

Katherine Rich Chief Executive NZ Food & Grocery Council

Chris Fisher Countdown General Manager Merchandise

Chris Quin CEO Foodstuffs North Island

2017

LEADERS FORUM

Veronique Cremades Country Manager & CEO NestlÃ©

Catherine Beard Executive Director Export NZ and Manufacturing NZ

Andrew Smith CEO Prolife Foods

Trina Snow Buy NZ Made Campaign Manager

FMCG BUSINESS - FEBRUARY 2017

[ leaders forum ]

EMPHASIS ON HEALTH AND WELLNESS

Katherine Rich Chief Executive NZ Food & Grocery Council

FOR OUR COMPANIES, REFORMULATION WILL CONTINUE TO BE THE MOST IMPORTANT WORK THEY DO AS THEY PRODUCE HEALTHIER PRODUCTS WITH MORE HEALTH STARS.”

FMCG BUSINESS - FEBRUARY 2017

ANY ELECTION year brings with it potential for change, but in 2017 that likelihood has risen following recent events. On the immediate front, Bill English’s Cabinet reshuffle has resulted in a new Minister of Food Safety (David Bennett) and likely a new Minister of Health later in the year (if Jonathan Coleman moves into Foreign Affairs, as is picked). Both roles have a direct influence on what happens in the FMCG sector, and we will be watching for changes in emphasis. On the wider front, the change of leader has likely changed the election dynamic, to be expected when a popular leader leaves and a new one has less than a year to show and prove himself. Should there be a change of government, the sector would be facing a regime that has made it clear taxes on sugar would be on the table. There would likely be others. But that’s speculation for after September or October. Of more certainty are issues the sector will face irrespective of what happens on the political front. There will be debates on a couple of issues that have been bubbling along in the background: country of origin labelling and palm oil. The drawing from Parliament’s ballot of the Consumers Right to Know (Country of Origin of Food) Bill will spark debate, though FGC members’ call centres register so few calls on the topic that it doesn’t even register, and with extra information available in-store or onpack I’m not sure it’s as much of an issue for the public as some campaigners claim. The renewal of calls for palm oil labelling for food is interesting, because the Government’s reasons for pushing this are not in line with activists. They are concerned with the environmental effects (a conundrum, when palm oil production uses less land to produce the same amount of oil as any other crop), whereas the Government is coming from the health angle, due to it being a source of saturated fat. When saturated fat is already specified on labels, we await the clarification from the Government as to why saturated fat from palm oil is a different concern than from other sources (which New Zealand produces quite a lot of). Public health activists will no doubt keep the sugar debate alive, and FGC will continue to point to the undeniable proof from Mexico sales figures that show sales are back to where they were before the tax, with the only difference being the massive amount of money being raised from companies, but ultimately from citizens, in the form of higher prices. For our companies, reformulation will continue to be the most important work they do as they produce healthier products with more health stars. Consumers want more options, and companies will want to provide them to stay in the game. FGC will continue to work with them and the wider sector, and with the community through its HealthyBalance.nz website to promote healthier eating and lifestyles. Our industry’s emphasis on health and wellness in 2017 is also picked up by world-leading market intelligence agency Mintel. In a report on food and beverage trends for 2017, it said consumer demands are for healthy, convenient, and trustworthy food and drink, and manufacturers across the world have opportunities to provide more people with food and drink that is recognisable, saves time and contains servings of beneficial fruits, vegetables and other plants. “Opportunities abound for companies … helping them develop in new regions and more categories throughout the course of the next year and into the future.” Doesn’t that sound like a great invitation for a sector with a reputation that is second-to-none in the world of food safety and innovation?

[ leaders forum ] AT COUNTDOWN our focus for 2017 is staying true to our purpose to make Kiwis’ lives a little better every day. That means concentrating on doing the basics really well; offering customers low prices, working efficiently, having the right products in the right store, and working with our team and suppliers to offer our customers an excellent experience instore and online. A key trend for us is to continue on our path to make things easy for suppliers both big and small, and expanding our direct farmer relationships. It means learning about each other, including seeing bigger opportunities and facing challenges head-on, such as the need we identified to work directly with farmers to increase the supply of free-range eggs in future. This means that farmers can provide us surety of supply, while we can guarantee a retail channel. We’re committed to increasing fresh fruit and vegetable sales, and working directly with growers is a key part of this. Produce is the first thing customers see when they come into our stores, and it’s a place where we want to give our customers the best quality and freshness. New Zealanders are increasingly looking for specialty health foods, whether it’s for health, dietary or lifestyle reasons. We don’t see this trend slowing down anytime soon and I think it will continue to influence and create even more new product development in this category, which is really exciting. It’s a growing market and one where Countdown can really contribute to making health food options even more accessible and cost effective for our customers. We already have 129 stores with dedicated health food sections to accommodate this growing demand; this will increase in 2017. At Countdown we’ve committed to some ambitious health and nutrition targets, and in 2017 we’ll continue the review and reformulation of more than 1000 of our own brand products. Customers will see even more products reformulated with less sugar, sodium and fat. Customers continue to want to know where their products come from, and the trend of organic, free-range and provenance is going to impact greatly in the New Year. This will see more emphasis on education, in particular teaching customers about seasonality, making sure labels are clear for our customers, highlighting our corporate social responsibility work as well as offering more healthy food options and showing customers more cost-effective ways to shop. In 2017 I see no sign of convenience slowing down as a key driver for customer choice. Services which help to make people’s lives easier will continue to be a massive trend in the coming year, such as online shopping, Click and Collect, more offerings in store such as pharmacy and NZ Post pick-ups, basically anything that saves time. Countdown has a long history in these services and with 20 years of online experience under our belt we’ll continue to develop and innovate in this area. Likewise, convenience food options will continue to grow, and I’d expect to see more product development such as pre-prepared dinners, sliced apples, pre-made guacamole, cheese sticks, sliced cheese, pre-packed cheese and crackers, and easy recipe inspiration like Countdown’s Feed Four for $15. In other words, it’s looking like another exciting year in retail.

MAKING LIFE EASIER

Chris Fisher Countdown General Manager Merchandise

WE’RE COMMITTED TO INCREASING FRESH FRUIT AND VEGETABLE SALES, AND WORKING DIRECTLY WITH GROWERS IS A KEY PART OF THIS.”

FMCG BUSINESS - FEBRUARY 2017

[ leaders forum ] “IT ALWAYS seems impossible until it’s done.” This is a mantra from Nelson Mandela which rings true for us. 2016 was hugely exciting and challenging with earthquakes, new stores, technology, strong growth and increasingly happy customers – who value many of the things we are doing to enhance their shopping experience. The work we put in last year has us set up for a strong run at 2017. I have been in the Foodstuffs North Island (FSNI), CEO role now for 17 months and it’s been at pace with 214 store visits, 37 Distribution Centre Roadshows, 12 Board Meetings, 11 Owner-Operator meetings and supporting the team and owner to build a supermarket in 24 hours in response to the November 16 earthquakes. This business is fast, complex, competitive, fun and strategic. One of Foodstuffs’ key advantages is the co-operative structure – where the intensity of our owner operator execution and the strength and focus of the multiple brands come into play. There is absolutely no risk of average things gaining any traction in a co-op as the system simply rejects them. In a year which is likely to promise local and global turmoil – namely a general election, US government and technology change, speculation around new market entrants and housing market pressures – I am confident our co-op model is a strong foundation for driving innovation, excellence and relevance to New Zealand shoppers. Our unique operation affords us a relationship with the customer that is second to none – our owners must succeed with their local community every single day. For FSNI 2017 is all about more delivery of value from the changes already underway. 2016 saw the implementation of SAP, new stores, award-winning consumer promotions, and a new loyalty programme – now we need to land the benefits. Our success can only be delivered by unleashing people’s potential with everyone willing to challenge and contribute, as well each knowing how their role connects to the strategy, meaningfully. Like many businesses we are focusing on agility, clever use of data and technology and opening the organisation up to creative thinking – all driven by our customers and members. The shopper has more information than ever to make decisions. We now have a 24/7 dialogue thanks to social media which keeps us and our suppliers on our toes. This operates with our new loyalty programme and research which enable us to know even more about what our shoppers need and how they respond to our product and service offering. New World Clubcard launched at FSNI in mid-2016 and only 24 hours after mailing out new cards 170,000 customers had already swiped their cards. Combine this with SAP and we’re an increasingly smart retailer able to service customers with an incredible level of knowledge, driven by customer insights. Another role as Chairman of Icehouse lends me the opportunity to engage with many New Zealand businesses on the cusp of greatness. For them, and equally for a business like ours, there are some principles to live by that help us get ahead: • Truly know what your customers value • Big aspirations must be backed up with great execution • New Zealanders love brands that are genuine • When things go wrong show humility and a real commitment to fix things • Be relevant to every valuable future segment • Base decisions on fact and customer insights. As we move through 2017, I see my responsibility to keep looking at everything with fresh eyes, and to challenge all that we do to make sure our customers get more out of life. 12

FMCG BUSINESS - FEBRUARY 2017

FOCUS ON AGILITY AND TECHNOLOGY

Chris Quin CEO Foodstuffs North Island

Chris joined FSNI as CEO in September 2015 and is now immersed in the unique world of grocery. Prior to joining Foodstuffs Chris was CEO of Spark Home, Mobile and Business and led the business through the very successful rebrand from Telecom to Spark. He held several other leadership roles at Spark and Gen-i Australasia (now Spark Digital) receiving in 2010 an Emerging Leader Award at the annual Sir Peter Blake Leadership Awards and the Chairman’s Award at the TUANZ Innovation Awards.

KEY TRENDS To wrap up, my topline predictions for 2017 and beyond centre on a few key trends: • Growth in new formats and enhanced adjacency to service customers faster • Wellness is a priority for an aging population, as are provenance and sustainability • Expansion of international products for an increasingly diverse customer demographic • And, both premium and value-led options need to develop to cater to customers’ differing needs.

[ leaders forum ]

ENSURING A HEALTHY AND SUSTAINABLE FUTURE MILESTONES ARE a time for reflection: as Nestlé celebrates 150 years we ask ourselves - how did we get here, what will take us to another 150 years, and how do we make the right choices to ensure genuine sustainability? At the heart of answering these questions is understanding the changing needs of individual consumers – we must do more than provide great products that consumers love. For Nestlé, scientific research and consumer insight have been the backbone of our business since 1867, when pharmacist Henri Nestlé developed Farine Lactée, the first infant food to supply basic nutrients to babies who could not be breastfed. Today, our Swiss-based research facilities provide the scientific knowledge and research base for product renovation and innovation, and conduct biomedical research with the vision of translating it into personalised science based nutrition. We are bringing together medical expertise, clinical trial programmes, and a range of partners in science and business, to push boundaries to deliver better nutrition for our consumers. Our research goes beyond nutrition. Plant science research helps too – like in Uncle Tobys, where oats are bred to be drought and disease resistant, easy to mill, and have higher levels of beta glucans, which help lower cholesterol levels. Technical innovation has also shaped Nestlé, while making food preparation easier for families. Household names like Nescafé – maintaining the beans’ aroma and flavour for the world’s first enjoyable instant coffee; Nespresso – created so anyone could make the perfect cup of espresso; and Milo – developed to help children get additional nutrition, but without the extra vitamins and minerals sinking to the bottom of the cup – have revolutionised food preparation.

Responding to challenges Today we face not only the twin challenge of obesity and nutrient deficiencies, but the question of how we will feed a growing world population while confronted with climate change, food waste and global water deficits. Nestlé has responded by making 39 global commitments that shape every area of our operations: from how we source ingredients, to how our factories operate, how we engage in our local communities and participate in the discussion on climate change. In making these

Veronique Cremades Country Manager & CEO Nestlé

OUR RESEARCHERS HAVE FOUND A WAY TO STRUCTURE SUGAR DIFFERENTLY, SO THAT WE CAN USE LESS SUGAR BUT PERCEIVE ALMOST IDENTICAL SWEETNESS.” commitments, we have consulted around the world and have set the goal of meeting each of these commitments by 2020 or earlier. In New Zealand, these commitments provide the foundation for our plan to help reduce childhood obesity. However, delivering on these commitments is not straightforward: there is no silver bullet. Confronting them takes drive from the top, extensive external collaboration at a local level, an eye for opportunities, and thousands of small and large actions that examine, challenge, change and improve – coupled with a focus on measuring, tracking and stretching goals. That same focus on applying scientific and nutrition knowledge to meet the needs of individuals and families that drove Henri Nestlé still supports us today. Our recent announcement that our researchers have found a way to structure sugar differently, so that we can use less sugar but perceive almost identical sweetness, will help us accelerate our efforts to meet our public commitment to reducing sugar in our products. Henri Nestlé would undoubtedly be surprised to see New Zealand today; likewise, we can only guess at what the world will look like 150 years from now. However, there are things I am sure will not change: our focus on science as the basis of good nutrition, and an effort to continually understand our consumers and seek ways to provide tastier, healthier choices to empower people to enjoy nutrition. FMCG BUSINESS - FEBRUARY 2017

[ leaders forum ]

THE ORIGINAL EXPORTERS – TIPS FROM THE TOP

Catherine Beard Executive Director Export NZ and Manufacturing NZ Catherine Beard is Executive Director of Export NZ and ManufacturingNZ, divisions of BusinessNZ, New Zealand’s largest business advocacy group, representing thousands of businesses of all sizes. She works with government and other key decision makers on issues of concern to exporters and manufacturers. Catherine has worked as advocate for industries in the agricultural and insurance sectors, and on climate change issues for the energy intensive sector. She is a member of the Board of global standards organisation GS1 and is Director of a business designing and manufacturing children’s nursery furniture, for which two products have won national design awards.

FMCG BUSINESS - FEBRUARY 2017

FOR MANY Kiwi companies looking to start exporting overseas, Australia is a sensible first choice. New Zealand and Australia have one of the closest and broadest economic and trading relationships of any two countries in the world. There are many similarities between the Australian and New Zealand markets, though there are small subtle cultural differences that exporters need to pay attention to. Mark Kennedy, NZTE’s Beachheads Advisor in Australia says that in the Australian market, mainstream is disappearing – the market is going for the best or the best priced. There is also a shift in what is perceived as a premium product. It’s all about the crafting that has taken place to create the product – who was involved, where does it come from and what passion drives the organization? You need a really clear sense of purpose and a point of relevant difference.

High demand drives export growth I spoke to Mike Sproule of Original Foods Baking Co. about the export journey of this Kiwi wholesale baked goods company. Original Foods was established in Christchurch in 1991 and produces over 90 products including cakes, donuts, muffins, brownies and slices sold under the Original Foods Baking Co™, Goofy™, Bite Me™ and generic supermarket brands. The products have broad appeal in the New Zealand and Australian markets. In fact, it was the high demand from Kiwi consumers in Australia wanting Original Foods’ sweet treats that started their export growth into the Australian market. “We have a very loyal customer base and we still get people emailing us on our website asking for their favourite products,” says Sproule. The proudly family-owned business has been perfecting its baking recipes for over 25 years. Original Foods prides itself on the freshness of its baked goods. The company uses the highest quality raw ingredients with everything freshly baked and then frozen to retain freshness before being shipped. Natural flavours are used wherever possible with minimal use of additives or preservatives. “We now supply quality cafes, restaurants, supermarkets, catering companies and tourism businesses in New Zealand, Australia, the Cook Islands, Samoa and Hong Kong as well as Air New Zealand, Singapore Airlines, Virgin and Jetstar’s inflight menus,” says Sproule. “We’re currently looking at the Chinese market and continuing to expand our Australian market.” It seems they are in a growth market too, with the global demand for baked products projected to exceed US$485 billion by 2020, with Asia-Pacific ranking as the fastest growing market. “We’ve just built and opened our new $10m, 2,800 square metre production facility in Christchurch, which has allowed us to significantly increase our production volume,” says Sproule. “And as for market expansion, we’re primarily working with well-established contacts we’ve made in each market.” His top tips for Kiwi companies looking to export are: • Great relationships are critical within your distribution networks in each market. • A strong point of difference is essential – “there are cheaper products out there that try to undercut us for example, but we have superior quality products and are leaders in our field.” • Don’t expect to make money straight away in a new market, it takes time to foster relationships, understand market nuances and learn from your mistakes. • Keep building your contacts and knowledge, it can take time and some luck to find a good distributor – you may need to try a few before you find the right one. • It’s good fun but it’s not easy! You need patience and perseverance. Hire someone with experience and with good contacts to help open doors for you. • Don’t jump on a plane and run around everywhere. Stop, look and really understand the market, and make sure you have a clear plan for each market • Conquer one market at a time. Once you have that one right then move to your next one.

GREAT RELATIONSHIPS ARE CRITICAL WITHIN YOUR DISTRIBUTION NETWORKS IN EACH MARKET.”

[ leaders forum ]

LOOKING AHEAD IN 2017

BUY NZ MADE GATHERING MOMENTUM Andrew Smith CEO Prolife Foods

2017 IS going to be another busy year for the FMCG industry in New Zealand. At Prolife Foods we have two main objectives for 2017: continuing to grow our New Zealand business, and continuing the journey to build a true international food business as a NZ company. Our international journey has been a steady one over the past eight years. We now have almost 45% of our revenue generated internationally, with over 500 staff employed overseas – and this was recognised by Prolife being a finalist in the recent NZ International Business Awards. We are still new in the international space and are now developing plans for the next 5-10 years. What we have learned is that becoming international is not easy and requires significant, sustained investment to make progress and a resilience to deal with the inevitable setbacks. We have also learned the power of collaboration, where possible, with other NZ companies – and are always open to opportunities that come along.

WHAT WE HAVE LEARNED IS THAT BECOMING INTERNATIONAL IS NOT EASY AND REQUIRES SIGNIFICANT, SUSTAINED INVESTMENT TO MAKE PROGRESS AND A RESILIENCE TO DEAL WITH THE INEVITABLE SETBACKS.” In terms of New Zealand, it remains our most important market and where we develop the competencies that we take international. 2017 will be no different – and we have a large activity plan across our key brands of Alison’s Pantry, Mother Earth, Donovans, Value Pack and Haddrell’s and with our key customers. We have almost 700 people in the NZ business engaged in our purpose of “Providing great food with obsessive service” and over the past eight years we have doubled our NZ business. I wish everyone involved in the NZ FMCG industry a successful 2017!

Trina Snow Buy NZ Made Campaign Manager

AT THE Buy NZ Made Campaign we have seen a definite upswing over the past two years in interest in domestic companies making more of their status as a New Zealand manufacturer and we expect this to continue and gather pace through 2017. Consumers are definitely becoming more and more tuned in to a product - what it is made of, how it is made, is it healthy, and how all of those things affect them and how they affect the world in which they live. These are just four examples, but there are often more concepts they take into consideration when making a purchase. At home here in New Zealand there is also a desire to support companies manufacturing locally, in the face of uncertainties in the world that are presented to us each and every day via a number of traditional and social media. There’s a strong view that buying home manufactured produce and products takes away a degree of that uncertainty. Those same concepts affect buyers abroad, and they look to products - from anywhere - that tick their own particular boxes. New Zealand manufacturers share the same values as the consumers who choose their products and in fact we have seen them up the ante and use their status as a prime marketing message. This message is being used in domestic markets and in international markets, where the New Zealand brand retains a strong reputation for innovation, sustainability and premium quality. We hear from our members these factors are becoming increasingly important in the global marketplace and we do expect this to be an even stronger trend moving forward. At Buy NZ Made we have launched a number of new initiatives to encourage and help more New Zealand companies to make the most of these market factors, including a monthly Hero award where we will provide some support for a company going beyond the norm to promote and celebrate its New Zealand status. We are also planning to be out there at events to a much higher degree than we have been in the past as interest in New Zealand-made products soars at home and abroad.

INTEREST IN NEW ZEALANDMADE PRODUCTS SOARS AT HOME AND ABROAD.”

FMCG BUSINESS - FEBRUARY 2017

[ gear ]

Cheers ears Cables are so last year! Logitech have launched their Jaybird Freedom Bluetooth wireless headphones that can connect with a smartphone to stream audio without that oh-so-annoying cable tangle. Despite their pint-sized form-factor, they deliver big audio. Handily, they’re also small enough to slip into a pocket and can deliver 3-5 hours of playback off of a single charge.

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

Secure and smart travel lock It’s a rookie travel mistake we all dread. Having splashed out on a rugged looking padlock to keep your luggage secure, you arrive at your destination halfway across the world from home, only to discover that the padlock key is still on the dining room table. This is easily avoidable thanks to the Dog and Bone LockSmart Travel. It is a smart padlock that securely pairs with a smartphone to unlock wirelessly. Keys can be shared electronically, even if you are in another country. All access to the LockSmart travel is recorded by the mobile app.

Lost and found Tired of losing those keys, glasses . . . (your mind?). Don’t panic, the answer is here in the form of the Tile, a small white square widget that can fit in a wallet, glasses case or key fob and can be tracked using a smartphone application. The Tile pairs with a smartphone using Bluetooth and hitting the big green “FIND” button sees the Tile play a tune to help you locate it if you’re within range. You can also use the Tile to make a lost phone play a ringtone. Dead handy! 16

FMCG BUSINESS - FEBRUARY 2017

[ gear ]

Samsung Gear Fit 2

Surround camera: Fly360

A new generation of cameras look set to revolutionise holiday snaps. The Fly360 is a 360 degree camera that shoots a full photo sphere allowing the viewer to pan around the photo in real time. When paired with a VR headset, the Fly360 allows the viewer to look around the photo, which feels incredibly immersive. The Fly360 is finished in no-nonsense black with angular edges to stop it from rolling away. Its entire body is sealed and waterproof to 10 metres. Its only external control is an on/off record/stop button.

Samsung’s latest fitness tracker, the Gear Fit 2 sports a curved touchscreen that displays steps, floors climbed and calories burned (it also tells the time!). Built in GPS means runners can also see a map of where they’re running and record their route with pace information. Built in storage also means music can be stored on it and streamed to Bluetooth headphones. Its curved metallic body comes in blue, pink or black. The curved design means it won’ get in the way during a workout. The Gear Fit 2 also motivates you to exercise. This is done via an inactive timer on its screen, showing the amount of time spent blobbed out. It can also detect movement and work out what sort of exercise is happening. Last (but by no means least) it’ll also display phone notifications.

Mobile phones pay with BNZ and ANZ Apple Pay has launched via a partnership with ANZ Bank and now Google Pay is also available to Kiwis thanks to a partnership with the BNZ. Both services allow you to use your phone as a contactless card, allowing you to make payments by tapping your phone against compatible eft-pos terminals. Both services are powered by a free mobile app and actual credit card details are not stored on your phone (or shared with merchants).

FMCG BUSINESS - FEBRUARY 2017

[ in season ]

Last of the summer produce A s we head into the last official month of summer, February offers one last burst of this season’s produce. Here is our list of top picks for February.

Kiwiberry Kiwiberries are the easy-to-eat new member of the berry category. Eaten whole like a grape, kiwiberries are sweet, but with a tangy gooseberryguava flavour. There are three main cultivars grown in New Zealand, with the Bay of Plenty being the biggest producer. Kiwiberries are best kept refrigerated and close to 0° C. Keep away from other ethylene-producing fruit and display alongside other fresh berry products. Kiwiberries can be used in drinks, salads, salsas and as a snack.

Blueberries February is peak season for these delectable berries. A deep purple to a blue-black colour with a sliver white frost or bloom indicates freshness. Also look for plump fruit that is uniform in size. Store between 4-6° C, and if possible, merchandise in refrigerated shelving.

Melon and citrus

Pipfruit New season apples are starting to appear in store, with a delicious array of varieties for shoppers to choose from. Part of the new season apple range is Royal Gala, a popular choice with customers thanks to its crisp, firm, sweet taste. New Zealand has a long history of developing new apple varieties, like Royal Gala, which was created in the 1930s. Today, it is New Zealand’s second largest variety by volume. New Zealand grows a variety of apples suitable for eating and cooking, making them a very versatile fruit. Other new season apples include NZ Rose and Braeburn.

Valencia oranges, the juiciest of the New Zealand-grown citrus fruits, are hitting shelves this month. Most of New Zealand’s oranges are grown in the Gisborne region with supply split between Navel and Valencia. February also sees the melon season peaking. Although the melon season is short, this thirstquenching fruit is always great value.

Summerfruit A wonderful selection of New Zealand-grown summerfruit is still available, and it is particularly good value this month. February ushers in the time for preserving and bottling fruit as customers look to capture the last of the abundant summerfruit. Nectarines and apricots are popular jar fillers, while another seasonal summer favourite, the cherry, wraps up towards the end of February.

Raspberries

Other picks

Sweet and juicy raspberries round out the summer berry fruit line-up. Due to their hollow core, raspberries are perishable, and crush easily, so need careful handling. The red-coloured raspberry is the most common, although yellow raspberries are also available. The red raspberry has a rich yet delicate flavour. The high number of seeds give raspberries their high dietary fibre content. In botanical terms, raspberries are not berries at all but are a bunch of numerous druplets (fleshy fruit around a seed). Choose raspberries that are fully ripe, firm, plump and deep in colour. Display in refrigerated cabinets and keep dry.

New Zealand-grown garlic is characterised by a fresh pungency, making it a popular choice with customers. Most of the country’s garlic comes from Marlborough, where the season runs from January to November. And this time of the year also means New Zealand-grown tomatoes are at their best in terms of value and variety. Again, tomatoes are a popular choice for bottling and preserving as we head into autumn. www.unitedfresh.org.nz

FMCG BUSINESS - FEBRUARY 2017

NEW ZEALAND HAS A LONG HISTORY OF DEVELOPING NEW APPLE VARIETIES, LIKE ROYAL GALA, WHICH WAS CREATED IN THE 1930S.”

[ xxxxxxx ] Kale, chorizo and lime salad with Paul Newman’s Own Ranch Dressing.

BEST DRESSED SALADS Novel salad ingredients and quality dressings are trending this summer.

hen Hollywood star and humanitarian Paul Newman released his first ever salad dressing back in 1982 it was on the proviso that all profits

would go to charity. His detractors scoffed that such a business model was doomed to fail. In fact, the Newman’s Own brand not only thrived, but over the past 30 years it has become internationally recognised and Paul Newman and the Newman’s Own Foundation have supported charities worldwide to the tune of $US470 million – and counting. The company edict is brief and to the point – ‘Turning Good Food into Good Deeds’.

In New Zealand, Paul Newman’s Own currently enjoys second place as the favourite brand in the category with Balsamic and Creamy Caesar dressings as the strongest performers. Since its initial launch the brand has relied almost entirely on PR campaigns to increase brand awareness. These campaigns are centred around the Foundation’s annual grant giving whereby NZ charities are invited to apply for funding for special projects. Some of the charities supported by the Foundation over the past decade include CanTeen New Zealand (Auckland), Northland District Health Board (Whangarei), Cholmondeley Children’s Centre (Christchurch), and Feed the Need (Auckland). The Foundation has also donated over

IN NEW ZEALAND, PAUL NEWMAN’S OWN CURRENTLY ENJOYS SECOND PLACE AS THE FAVOURITE BRAND IN THE CATEGORY.”

FMCG BUSINESS - FEBRUARY 2017

[ category insights ]

$500,000 towards disaster relief in New Zealand. Last year, Paul Newman’s Own launched its first ever radio advertising campaign supported by a recipe collection on bite.co.nz. In addition to the brand awareness campaign there was a charity community service announcement featuring Masterchef NZ winner Brett McGregor asking New Zealand charities to apply for a 2017 charity grant. The Foundation will announce the charities receiving funding for special projects focussing on children with life limiting illnesses by April 2017. To discuss the Paul Newman’s Own Dressing range contact the team at Hutchinsons on 0800 555 258.

T&G Global T&G Global grows, packs, markets and distributes some of the country’s most popular fresh fruit and vegetables, including Beekist, Classic and Ruby tomatoes and Jazz and Envy trademarked apples. “Beekist Angel is the #1 selling tomato prepack product in NZ while Jazz is among the top ten selling apple varieties in the country,” says Michelle Singh, NZ Marketing Manager. “T&G Global’s Beekist Angel tomatoes were a finalist in the best Primary Sector Product of the 2016 New Zealand Food Awards as well as

FMCG BUSINESS - FEBRUARY 2017

our Y.E.L.O™ tomatoes, which we were thrilled about. Beekist was also a finalist in the Best Design Awards for packaging in 2016 which was another great accolade. “With the launch of YELO tomatoes T&G identified an opportunity to introduce great quality, flavoursome and colourful tomatoes into the market based on both global and local consumer trends. Eating a meal has increasingly become about both visual appeal and flavour combination and Beekist® Y.E.L.O™ delivers on both those needs for the consumer. YELO adds that ‘wow factor’ to a red tomato dominated category and gives consumers more choice in a category we know New Zealanders love! “YELO are a new concept for consumers as they are used to tomatoes being red, however those who try it absolutely love them and add this to their weekly shopping list because they add so much colour and flavour to meals. YELO is still a very new product within New Zealand supermarkets and as more consumers try them we can see a positive effect on sales results, especially during the summer months when people are trying to get creative with the humble salad. “Consumers are looking for flavour, quality, visual appeal and convenience within the salad category. They want to know that what they buy will add flavour to their salads as well as make it look visually appealing. Our tomatoes (Beekist, Classic and Ruby’s) are bursting full of flavour and we have a variety to suit all meals and salad needs. Consumers are using the sweeter smaller and medium variety in salads for a mix of colour, shape and flavour. A great way to add some flair to salads this summer,” says Singh.

Something to Crow About Up and coming health food brand, Something to Crow About, really did have something to crow about recently, when their range of Roasted Seed Sprinkles was named ‘highly commended’ in the Artisan Category of the NZ Food Awards 2016. Roasted Seed Sprinkles come in three gourmet flavours, original, mild garlic and warm chilli and are naturally gluten free. They make the perfect accompaniment to any salad, roast veggies or meat dish, adding flavour, adding protein and crunch. Appealing to those looking for new and interesting health food solutions and snacking options. “The range performs well over the summer with sales 30% up compared to the winter season. In April 2016 the everyday price was reduced from $9.99 to $8.99. We recommend merchandising our sprinkles alongside salads in the produce area. Customers benefit from understanding how to use the product and retailers benefit from add on sale opportunities”, says owner Mike Millar. Something to Crow About has supported this award-winning range with consumer print

[ category insights ]

BEST FOODS HAS RECENTLY LAUNCHED INTO THE FLAVOURED SEGMENT WITH FOUR VARIANTS.” GRAEME NEWTON, ACCOUNT MANAGER

advertising in the Healthy Food Guide magazine in 2016, food shows nationwide, instore sampling and an instore promotional programme. This will continue in 2017. Owners Mike and Christine Millar purchased Something to Crow About in 2014 and relocated it from Dunedin to its current home on the Hibiscus Coast. “We are excited to join the ranks of local producers offering great tasting, healthy food options to Kiwis,” says Mike. Enquiries to mike@crowabout.co.nz or your local Strikeforce NZ representative. www.crowabout.co.nz

Best Foods James Crisp Ltd distribute Best Foods – NZ’s #1 Mayonnaise brand. Graeme Newton, Account Manager, explains: “The Mayonnaise segment contributes 69.4% of T. Dressing value sales and has grown 7.8% ($3.3m) over latest year, both Pourable and Other Dressings have declined 5% over the same period. (Nielsen MAT to 01/01/2017). “Best Foods is made from real, simple ingredients to ensure a smooth and creamy texture. Using the best possible oils from sustainable farms, delicious cage free eggs and absolutely no artificial flavours,” says Newton. Considerable effort is being placed in extending usage of Mayonnaise into cooking and baking. Best Foods NZ Brand Ambassador Jo Wilcox has created a number of excellent recipes with additional offerings from other local food bloggers and taking best dishes from overseas (www.bestfoods.co.nz). Best Foods has recently launched into the Flavoured segment with four variants, Touch of Garlic, Spark of Chilli, Pinch of Mustard and Zing of

NIELSEN DATA Total Supermarkets - CURRENT MAT to 01/01/2017 Val Sales

Val % Chg YA

Total Salad Dressings and Vinegar

$79,798,392

Mayonnaise

$45,657,150

4.9 7.8

Vinegar

$14,001,012

10.1

Pourable Dressings

$13,804,555

-5.4

Other Salad Dressings

$5,627,041

-5.0

Dry Salad Dressing Mixes

$708,633

42.9

Prepacked Salads

$107,071,373

6.0

Fresh Herbs

$21,979,889

4.7

Fresh Sprouts

$4,771,457

1.9

Lemon. The range has just been sampled with Black Box and received two Gold awards (Garlic/Mustard) with recommendation scores over 90% and two Silver awards (Lemon/Chilli) scoring well over 80%. “We are just underway with our relaunch into the small squeeze segment with 340mL Real & Light replacing the previous 265mL variants, offering consumers even better value with an extra 28% volume while maintaining previous price,” says Newton.

Heavensent Gourmet Heavensent Gourmet (HSG) is New Zealand’s own premium dressings and vinaigrettes brand with its delicious products made from New Zealand honey (instead of sugar), fruit and vegetable bases and Italian extra virgin olive oil. Typically sold in the service deli they are a great accompaniment to specialist cheeses, small goods and other exotic treats. Previously distributed by a third party, Heavensent recently took back distribution and now service stores directly. Owner and General Manager Denise Bree says: “We felt it was time for us to service supermarkets directly and this enables us to meet with each store buyer to ascertain what they need from us and how to best service their customers”. HSG continues to build its position as NZ’s premium dressings brand and is happy to supply stores looking for a high-end, NZ made product. You can contact HSG at denise@heavensentgourmet.co.nz. The most popular products are Raspberry Vinaigrette, Roasted Red Pepper Dressing and Creamy Lime Dressing. The total range of vinaigrettes, dressings and sauces encompasses 19 exotic and exciting variants with the top five delivering excellent stockturns as well as margins. See the full range at www.heavensentgourmet.co.nz and while you’re there check out their new range of low-cal, lowcarb “More-Or-Less®” vinaigrettes and sauces. HSG is different to other dressings brands in that it has built its reputation in the specialty foods market and has only begun to achieve visibility in the supermarket channel in recent years. As a consequence, shoppers who know the brand are pleasantly surprised to find their favourite products in their local supermarket.

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. 22

FMCG BUSINESS - FEBRUARY 2017

GROWING CATEGORIES Eggs and poultry products are increasingly popular as shoppers recognise the nutritional benefits of these affordable protein sources.

ndependent Egg Producers Co-operative Ltd (IEP) is a national egg supplier made up of regionally based owner-operator farms specialising in the production of quality, fresh eggs at a local and personalised level. “Our local farms operate under a registered Risk Management Programme to ensure all food and safety requirements are met and all products comply with current legislation,” explains General Manager, Susan Bamfield. “IEP offers a complete range of fresh eggs to supermarkets across New Zealand under our national brands Morning Harvest, New Day and Sure As eggs. IEP is the second largest selling egg producer nationally in key accounts, with a 25% volume share in the cage and colony laid segment with Morning Harvest and Sure As eggs, and 8% volume share of free range with New Day eggs (Source: Aztec MAT 11/12/16, manufacturer volume sales). The total egg category represents value sales of $221m per annum,” explains Bamfield. She adds: “New Day free range eggs come from seven farms between Northland and Otago specially selected for their pastures, shelter and climate. Each of our farms is independently audited by AsureQuality, which verifies compliance with the Animal Code of Welfare (2012) for Free Range layer hens. The website www.newdayeggs.co.nz has an expanded recipe section in response to consumer demand for cooking and baking. “Morning Harvest‘s recent consumer promotion rewarded a lucky shopper from Pak’n Save Palmerston North with a $10,000 cash nest egg, plus consolation prizes of Breville toasters went to winners all around the country. The promotion and supporting activity successfully drove purchase and high levels of engagement on morningharvest.co.nz. “Over the next 12 months, IEP will continue to invest into its core brands Morning Harvest and New Day free range to drive brand awareness and purchase. This activity will focus on consumer driven campaigns and leverage both the brands’ websites. 24

FMCG BUSINESS - FEBRUARY 2017

“Egg consumption continues to grow in New Zealand and this is reflected in the continued growth in overall volume and value. Consumers have a very positive perception of the egg market and recognise the nutritional benefits that eggs can provide, in particular protein, which is a major food trend globally in healthy eating. “The new Animal Welfare (Layer Hens) Code of Welfare 2012 requires a transition of farms from the intensive cage housing systems to less intensive enriched colony housing systems by December 2022. This will continue to influence our business over the next 12-24 months as significant investment is made by local farms to meet the new requirements, while maintaining supply to our customers,” says Bamfield.

Total market performance New Zealand has about 160 egg farms – most of which are run by owner operators or are family businesses. These farmers produce over 1 billion eggs per annum from the 3.6 million hens they farm (source: Egg Producers Federation). Egg consumption in New Zealand has increased to reach 237 eggs per capita from 230 per year, as per December 2016. In the last 12 months, supermarkets sold over 49 million dozen eggs. This places eggs as the 15th largest category in supermarkets. Eggs as a category have moved up three category places in the last three years. Egg demand is growing due to the relative affordability of eggs. This is a worldwide phenomenon as consumers seek low cost, versatile and healthy protein sources. Volume growth (dozens) in the last 12 months was +5.6% while value growth was even stronger at +6.3%. Driving this growth is the Free Range segment with value growth of +17%, contributing to over three quarters of total eggs value growth. The segment has increased its share of the category to now account for 20.8% of volumes sold. This growth is a result of a shift in market demand towards cage-free eggs, which is being driven in developed countries for animal welfare benefits. “New Zealand is also likely to experience substantial growth in this segment,” predicts Zeagold Foods Marketing Manager, Julie Williams.

O R w G TO

E EG

G CATE

R GO

â&#x20AC;&#x2122; E W

NG I P L E H E R

egg producer NATIONALLY #2 selling with locally produced eggs

from our family owned co-operative farms.

talk to us about OUR FAMILY FAVOURITE BRANDS. Call 0800 787 327 or drop us an email at: info@independenteggs.co.nz

*Combined brand sales. Source: Aztec MAT 11/12/16 manufacturer volume sales.

[ category insights ] Despite this growth, cage egg (the lowest cost egg) sales in New Zealand still make up the majority of the total volume sales. Source: IRI MarketEdge Grocery, value & volume, MAT & Qtr ending 25/12/2016.

Zeagold Foods Marketing Manager, Julie Williams told FMCG Business: “Zeagold Foods continues to lead the egg market in New Zealand with a portfolio of quality and well-known egg brands including the Farmer Brown range of eggs and Woodland Free Range eggs. Testament to the strength of these brands is their continued market leadership in their relevant segments. “In the last 12 months the Farmer Brown brand continues to go from strength to strength achieving both volume growth (of +4.2%) and value growth (+3.4%). Our Farmer Brown portfolio provides consumer choice across all segments. Farmer Brown Cage size 7 dozen pack is the number 1 selling SKU overall and grew (by +9.7%) in volume in the last year. Over the coming years we will continue to see increased volume of colony eggs. The new Colony housing is a positive step forward and has been promoted by the industry to provide a balance of better welfare coupled with affordability and sustainability for ongoing volume egg supplies. “Farmer Brown’s affordable free range offer has had significant growth

NEW ZEALAND’S LEADING

FREE RANGE BRAND*

W O O D L A N D E G G S .C O.N Z

in the last 12 months also (+50.0%) on the prior year. “Look out for Farmer Brown’s national consumer promotion in conjunction with Eggs Inc. to win one of six fantastic ‘Dinner Cracked’ prize packs: Free eggs for a year, a set of cooking dishes, a recipe book, an apron and designer tea towel. The promotion runs from 1st February until 9th April this year and will be supported with a national PR and social media programme – eggs will be in the news,” says Williams. The Woodland Free Range brand continues to lead the strong, growing Free Range segment. Williams explains: “It is the largest free range brand in supermarkets, up (+20.2%) in value and (+24.9%) in volume on last year. Woodland Free Range 10-packs are the number 1 and 2 selling SKUs in the Free Range segment.” Woodland has extended its portfolio and now has a complete range for consumers to choose from to suit their needs. The brand has also had a refresh with its revamped packaging and website. Woodland is internationally recognised and currently also sold in Hong Kong supermarkets.

NEW ZEALAND’S LEADING

CAGE & COLONY BRAND*

Good eggs. Good choice.

[ category insights ] Zeagold liquid egg white, which is an innovative high protein 100% pasteurised liquid egg white sold in chilled, convenient, ready-to-use pouches is in high demand. Since its launch three years ago, sales (based on the last 12 months) have grown to an annualised $1.1 million at retail value. This is sought after by body builders and consumers interested in low GI, high protein diets. It is sold in New Zealand, Australia and Singapore supermarkets. For more information visit the new website www.zeagold. co.nz. For cage and colony eggs visit www.farmerbrown.co.nz; for free range eggs visit www.woodlandeggs.co.nz ; and for the egg white product visit www.zeagoldeggwhite.co.nz. Egg demand will continue to grow as consumers become increasingly aware of the dietary benefits of eggs – the affordable protein, predicts Williams. She adds: “From a market perspective we expect to see significant growth in the specialty eggs segment at the expense of cage eggs. This will mirror the overseas trends away from intensive housing.”

A sizzling hot summer promo Ingham’s Butterfly Chicken promotion is making a sizzle again this summer with ten chances to WIN! For eight weeks, from 27 January to 26 March, shoppers can be in to win $10,000 cash, five prizes of $1,000 and five Weber BBQ’s by purchasing specially marked Ingham’s Butterfly Chicken product. With three popular flavours - Lime & Chilli,

Herb and Garlic and Tandoori, the Ingham’s Butterfly Chicken cut is perfect in the oven or on the BBQ. This summer promotion is in its fifth year and is a proven successful sales driver. The campaign is supported with a nationwide media programme. Range’em, your customers will love’em.

Eco Egg Co Ltd and Delicato Ltd The Eco Egg Co is one of New Zealand’s original organic and free range egg producers, which recently celebrated 25 years in existence. Eco Eggs free range and organic eggs are still produced to the company’s original production standards as set by company founder Mike Schellkes. They are distributed nationwide to the majority of New Zealand’s supermarkets. The company’s genuine free range eggs are marketed under the brand names Eco Eggs, Bio Eggs and Animal Welfare Eggs and are available in 10-pack, half dozen and dozen packs. Delicato Ltd is Eco Egg’s off-spring, processing these quality eggs into novel ready-to-eat egg snacks available in 2, 4 and 6-egg packs at selected supermarkets in the deli and produce departments. Eggs on offer are hard boiled in shell, peeled hard boiled, as well as smoked eggs, mildly seasoned salad eggs and savoury seasoned picnic eggs. These artisan novel egg products will be rounded off with a versatile egg spread just in time for the upcoming summer season.

NIELSEN DATA Total Supermarkets - CURRENT MAT to 01/01/2017 Val Sales

Val % Chg YA

Total Eggs

$217,712,815

5.9

Standard

$127,912,957

0.5

Free Range

$80,591,796

16.1

Barn

$9,178,008

3.5

Organic

$30,054

Total Frozen Poultry

$121,289,512

4.4

Processed Chicken

$55,900,685

10.8

Pieces Chicken

$35,708,318

1.4

Whole Chicken

$23,918,447

-4.7

Whole Turkey

$3,350,732

-1.8

Processed Other Poultry

$1,431,854

10.0

Pieces Other Poultry

$738,218

56.5

Whole Other Poultry

$241,257

0.0

-22.3

Freedom Farms Freedom Farms continues to expand with its recent move into the Free Range chicken market. “We used to joke we were the only brand in the world in the ‘bacon and egg’ market. Now were are probably even more unique being also in the ‘chicken and egg’ market,” says spokesperson Gregor Fyfe. He says: “Freedom Farms’ strength is that they are exclusively in the high welfare category and are generally recognised as the brand leader in this incredibly important part of the market.” They are a nationally distributed brand now offering consumers products in the high welfare chicken, eggs and pork categories. This means that

FMCG BUSINESS - FEBRUARY 2017

[ category insights ] they are seen by consumers as being very unique and most importantly ‘trusted’. Their new free-range chicken range includes whole birds and prepacked cuts and is an important addition to their range of key proteins for their loyal consumers.

Free range with integrity From humble beginnings on a single farm in Pukekohe, Kiwi Rob Darby recognised a gap in the market for wholesome, naturally and sustainably produced, certified free-range eggs. Darby hatched a plan and created FRENZ (The Free Range Egg Co www.frenzeggs.co.nz). The word soon spread about these delicious free range eggs and demand climbed steadily. “Free range eggs were something of a specialty when we started up in the seventies. You’d find them in small shops here and there, but once more people tried them and tasted the difference they kept coming back for more,” says Darby. Today 19 owner-operated farms are part of the Frenz Family, producing around 360,000 free range and organic eggs weekly. “It’s not the easiest way to farm, it takes a lot of investment and ever expanding knowledge to do this in a sustainable way, but the result is

well-cared-for hens producing great tasting eggs that people love, both here and abroad.” “Our farmers are dedicated, passionate families who follow Frenz’s strict standards to ensure birds have unrestricted access to pasture to roam. We maintain small flocks of 350 birds (maximum) per acre for Certified BioGro Organic and 500 birds per acre for Certified Free Range. The cost of land, feed and flock maintenance mean free range eggs are more expensive to produce than cage eggs, but many consumers are prepared to pay that little bit extra for an organic or free range product.” As the saying goes, ‘the early bird catches the worm’, and that’s literally what true free-range hens are ‘free’ to do. Darby says: “Frenz are also first in NZ to produce ‘Kitchen-Safe’ eggs, which are washed, dried and sanitised using an organic solution. The challenge now is to grow without losing core values, so Frenz has decided to add more farms rather than increasing the size of existing ones and a number of farmers are already interested in joining Frenz. “As many other brands’ free-range hens never see the light of day let alone green pasture, Frenz feels it’s important to ‘keep it real’ and that means farming sustainable small flocks, so the added value in taste and nutrients that pasture raised eggs bring can be delivered to the customer.”

Free to roam on open pastures 24/7

We wash and sanitise our eggs so you don’t have to

Early bird catches the worm, because they can

Our hens don’t do drugs, free to grow in small flocks

Keeping it real, the way it has been for thousands of years

All our organic eggs are Certified by BioGro

Trusted brand, 3 decades pioneering Free Ranging

100% Traceability, flock locator on every pack

Fresh Air + Green Pastures = The Happiest Hens on Earth • www.frenzeggs.co.nz

SPECIALTY BREADS

Wraps, bagels, wholegrain, gluten-free and organic options are in high demand.

Farrahâ&#x20AC;&#x2122;s best-selling Garden Spinach wrap.

FMCG BUSINESS - FEBRUARY 2017

[ category insights ]

recently launched two Gluten-Free Bagel skus and we are working on some new Bagel variants for late 2017,” says Kyle. She adds: “ABE’S are growing at +13% value MAT (Oct 16 Nielsen) and are contributing strong growth to the specialty bread sector. ABE’S Bagels also have a high brand loyalty at 73% (Nielsen Homescan 2015) reflecting the leadership position ABE’S has in the category and our single-minded focus on producing the best quality Bagels.” “We are working on a couple of NPD projects for launch in 2017. ABE’S are also bringing back our limited edition Easter Hot Cross Bagel leading up to and during Easter. The last time we released the Easter Hot Cross Bagel it grew sales of our Cinnamon and Raisin Bagel by 35%.” Kyle says: “2016 was ABE’S Bagel Bakery’s 20th birthday and to celebrate we ran a promotion on pack, the prize was a Foodies weekend for two in Queenstown. The promotion was very successful. We ran this in July and

pecialty breads are increasingly popular with consumers in New Zealand, who look for exciting and healthy new ways to snack and eat. “The main household shopper is buying less buns and rolls and more specialty bread products like bagels and these products are providing high value growth contribution to the overall bread category,” says Marketing Manager, Melanie Kyle. She explains: “ABE’s is driving higher year-on-year household penetration on bagels, which in turn is driving category growth. ABE’S consumers are also buying a lot of other Specialty Bread products such as wraps and pita which contributes to a higher value shopping basket for the retailer (Nielsen Homescan 2015).” ABE’S Bagels (Specialty Bread Category) and ABE’S Bagel Crisps (Bread Snacks Category) are available in New Zealand supermarkets. “We have

Bagels are best enjoyed when lightly toasted. JOIN US ON

ABE’S BAGEL BAKERY OR VISIT ABES.CO.NZ

For more information contact Sam Stone at sam@abesbagels.co.nz or call (09) 527 3736.

FMCG BUSINESS - FEBRUARY 2017

[ category insights ] promoted it on a neck tag, Facebook, Instagram and radio. We entered this promo into the NZDM awards and are now finalist with winners announced in March 2017.”

Farrah’s

THE WRAP SUB CATEGORY CONTINUES TO EXPERIENCE DOUBLE DIGIT GROWTH; IN THE LAST YEAR ALONE IT GREW BY +17.9%.”

National Marketing Manager Holly Shaw and National Sales Manager Casey Mason told FMCG Business: “Farrah’s brand proudly offers 10 different wrap variants - NZ’s favourite #1 Garden Spinach wrap followed by a strong performing range consisting of Premium White, Garlic Butter, Fire Roasted Pepper, Multigrain, Wholemeal, Chia & Quinoa, Sprouted Grain and two recently launched kid’s snack wraps in White and Cheesy flavour. Farrah’s are the market leader in the wrap category with a 59% market share (Aztec Data T. Supermarkets - MAT W/E 01/01/17).” In September 2016, Farrah’s also launched into the Mexican category with a range of flame baked tortillas and easy to use, gluten free, all natural spice mixes. “Like all our products these are also made right here in New Zealand. The range is showing strong volume and value sales and is already driving incremental volume and value growth for the T. Mexican category,” say Shaw and Mason. Farrah’s are constantly reviewing trends, talking to consumers and innovating the product range to drive growth. Within the last 12 months, four new wraps have been launched. Shaw and Mason explain: “Garlic Butter was launched in March 16 and is already a firm family favourite. It is number 6 in the category and has delivered $1.2m value since launch (Aztec Data T. Supermarkets - MAT W/E 01/01/17). At the same time Farrah’s Sprouted Grain was added, which joined with Chia & Quinoa sites as our ‘Super Duo’ super grain wraps. Sprouted Grain is an immerging trend in bakery in the US and Europe due to its health benefits as the grain digests in the body like a vegetable allowing for better absorption of its micro nutrients. Farrah’s were the first brand in New Zealand to bring this trend to grocery market.” As a proactive leader in the wrap and Mexican industry, Farrah’s identified a gap in the New Zealand market for a specific kids wrap and has launched its new Kids Range, complete with its own monster characters – Sprigs, Gizmo,

FMCG BUSINESS - FEBRUARY 2017

Sprocket and Axel. This exciting new Kids range, which was launched in October 2016, includes the traditional white wrap and an additional flavour; Cheesy Snack Wraps, to offer children and parents another option to liven up the lunch boxes. Each pack contains right wraps, which are the perfect size for little hands. Shaw and Mason comment: “The wrap sub category continues to experience double digit growth; in the last year alone it grew by +17.9% (Aztec data – T. Supermarkets Value W/E 01/01/17) vs the rest of the Bakery Small Goods Category, which has grown at +5.7%. More consumers are moving into this category as eating habits change and as they look for alternatives to mainstay traditional breads. Wraps fill that solution well by offering boundless versatility, ease and excitement of a new way to snack and eat.”

Goodman Fielder “Our brands are MacKenzie, Nature’s Fresh, Freya’s, Molenberg, Quality Bakers, and Vogel’s (under licence),” says Kylie Tipene, Marketing Manager Premium Bread. She explains: “In the last 12 months we have launched; Vogel’s Sprouted Grains, Vogel’s Gluten Free Wholemeal Buns, MacKenzie Craft Loaf (Purple Wheat and Malted Sprouted Grains) and Quality Bakers Wholemeal Muffin Splits. “We are happy with the progress of our product launches. We are investing in above the line, and new product development, tapping into new and emerging trends,” comments Tipene.

Basic

Venerdi innovation drives growth “In 2016 Venerdi continued to lead the way in proprietary bread with growth of Paleo, up 82% on last year, and now worth 8% of the gluten-free category (according to IRi data),” says Aaron McKenzie, Sales Manager. He explains: “Venerdi Organic Sourdough and Gluten Freedom have been consistent, offering quality ingredients with a point of difference. Now commanding 23% of the gluten free category we are well poised to launch more market leading products throughout our brands in 2017. Staying true to our values with health and nutrition being at the epicentre of everything we do, each and every product is designed to deliver on taste, texture and most importantly; making you feel great!” The family owned business also made its first foray into baked crackers

Better Customers look right past basic products too. with the low GI Moroccan Spice Paleo cracker earning recognition at the NZ Food Awards. This high protein, high fibre snack has been a winner with outdoor enthusiasts with good uptake in Australia. This summer sees two exciting new additions to the Venerdi Paleo brand. McKenzie says: “Paleo Buns will be a winner with consumers as they are packed full of clean, nourishing ingredients. Using pumpkin, ground linseed and honey they

There’s no easier way to extend your product range than with our inclusions in your recipe. ONE SUPPLIER. ENDLESS OPPORTUNITIES. Contact us to Just Add Taura www.tauraurc.com/bakery-promotion service.ap@tauraurc.com

[ category insights ]

NIELSEN DATA Total Supermarkets - CURRENT MAT to 01/01/2017 Val Sales

Val % Chg YA

Total Bread

$469,849,943

2.8

Light Grain

$119,670,274

4.1

White Bread

$88,542,400

-3.0

Heavy Health

$73,134,767

1.4

Meal

$42,916,779

0.3

Other Specialty

$37,502,039

16.5

Plain Buns & Rolls

$26,333,406

9.7

Muffins

$15,769,159

5.3

Crumpets

$12,866,577

0.2

Pita

$12,747,357

-1.1

Buttered Bread

$9,824,399

4.9

Bagels

$9,161,873

1.1

Easter Buns

$5,031,358

-2.9

Fruit

$4,018,223

-1.5

Pikelets

$3,954,614

-4.1

Indian Bread

$3,338,855

16.1

Sweet Buns & Rolls

$2,327,306

43.1

Par-Baked

$1,167,198

-16.1

Waffles

$1,077,208

-4.2

Garlic

$436,211

46.4

Indian

$14,272

-54.4

Other

$11,306

-88.1

Other Flavour

$4,347

126.0

Wholemeal

$14

187.6

provide light eating and the perfect addition to the family BBQ. Following this, a tasty Paleo Fruit Loaf will invigorate taste buds with banana, blueberries, cinnamon and walnut. “Our innovation is targeted at consumers seeking premium, differentiated and boutique products to include in their food shop. “It’s a challenging time, but we are ready to support our partners with the right strategies for growth,” says McKenzie.

Good Honest Products Good Honest Products available to New Zealand supermarkets include: • Good Honest Bark - Crispy Flatbreads (Supergrain and Turkish) • Good Honest Muesli 1kg (natural and toasted) • Good Honest Pastry – frozen (sour cream, all butter puff and vanilla sweet) • Good Honest Croissants - frozen • Jolly Good Slice range (caramel, tan, muesli, ginger) These are solely ranged in the South Island at present. “Our Bark is C ranged in the cracker category in New World stores and we have redeveloped our packaging,” explains Dawn Coberger of Good

FMCG BUSINESS - FEBRUARY 2017

Honest Products. “Within Christchurch we bake fresh artisan breads and baked goods and supply to over 300 cafes and restaurants as well as proudly supplying Raeward Fresh Supermarket stores. We have seen 100% growth across our supermarket range in the past 11 months.” She adds: “Overall as a company our growth was 132% in the last year. In the previous year we were awarded the Deloitte Fast 50 Fastest Growing Manufacturer and were 14th on the Deloitte Fast Fifty list.” “We see consumers looking for quality at a reasonable price, which is exactly where we fit into the market,” says Coberger. For more information visit www. goodhonestproducts.co.nz.

Purebread Purebread is New Zealand’s first BioGrocertified, organic bread and bakery, says owner Robert Glensor. “The term organic is more about what is NOT in our food, where artificial chemicals and pesticides are commonly found in modern grain growing. The last Total Diet Survey that creates the ‘Dirty Dozen’, or foods with most pesticides, revealed that 87% of wheat products had 23 different pesticides (see www.safefood.org.nz for more details),” says Glensor. “Most at risk, are our children as they take in more food in proportion to their body weight than adults do. They and the unborn foetus, are more sensitive to chemical exposure that may result in an array of very serious health problems,” he says. Glensor adds: “Feel bloated after a sandwich? Other health benefits come from Purebread using old fashioned fermentation processes over several hours. Time allows the natural enzymes to get working, breaking down the complex carbohydrates, which in turn greatly assist our body’s ability to digest the grains better.” Purebread use organic ingredients that offer high nutritional qualities like wholegrain buckwheat, oats, coconut oil, honey and eggs from pasture fed hens. “Of course, as this is all fermented, we can digest these better, so our bodies can absorb their valuable, natural vitamins and minerals from the organic ingredients,” says Glensor. “The stars of our bread varieties are

Young Buck, Big Daddy, Soul Spelt and Moral Fibre. For breakfast, lunch or dinner, and even snacks in between, they have many, truly healthy options including gluten free, paleo and certified organic.” See www.purebread.co.nz for more product information or call (04) 9029696.

Bread packaging gets recycled Over 169 million bread bags are bought annually in New Zealand, helping to extend the shelf life of our daily bread and therefore reducing food waste. But that’s around 650 Tonnes of soft plastic packaging going to landfill, which can now be recycled with the industry’s support. Thanks to The Packaging Forum’s soft plastic recycling scheme, which was launched in conjunction with Countdown, New World, PAK’nSAVE, The Warehouse and selected other retailers, shoppers can now collect the soft plastic packaging from all their staple food and grocery products and drop it off when they next go shopping. This “collect, drop and recycle” service is available at over 270 stores in Auckland, parts of Waikato, Canterbury, Greater Wellington and launches in Queenstown Lakes District in February. Packaging Forum Manager, Lyn Mayes explains: “Over 120 tonnes of soft plastic packaging has already been collected for recycling into new plastic products such as bollards, traffic control systems, benches and decking at Replas in Melbourne. FMCG members can buy these products on http://www.recycling.kiwi.nz/softplastics/products/. “The bread category is well represented with both Goodman Fielder and George Weston Foods signed up to the scheme. The results of the first branded audit show that bread bags make up 20% of all the branded packaging collected, which means around 10 million bread bags were recycled last year (about 7% of all bags consumed). That’s a great result and with the support of the entire bread category we can make that an even better result in 2017. “Overall around 50 million bags dropped off are branded packaging and following bread bags, the most popular bags recycled are frozen food (10%) Sanitary Hygiene (10%) Biscuits and chips (8%); confectionery and ice cream (6%) and pasta, rice and noodles (4%),” says Mayes.

COLLECT! drop! recycle!

HEALTH & BEAUTY A snapshot of new developments in personal care, wellness, skincare and haircare products.

ome-grown Goodness Natural Beauty Lab is celebrating its second birthday. With the natural skincare category up 27%* in New Zealand Grocery, and four new products coming to market, there’s a lot of growth to celebrate. Goodness, as seen on the cover of this issue, is what you might call the ‘little sister’ to Trilogy Natural Products. Trilogy is credited with helping establish the natural skincare category in pharmacy 14 years ago. And, of course, for pioneering the rosehip oil fad that’s swept the globe. Spotting new natural trends comes easily to this team and a range based on Certified Organic Chia Seed Oil (the core and hero facial oil for the Goodness brand) is an exciting addition to the continued growth of the natural skincare category. “Our chia seed oil is different to rosehip or other facial oils. Lighter, more quickly and easily absorbed, plus its subtle fragrance makes it ideal for people who’ve heard about the plant oil skincare trend, but are hesitant to try it,” says Goodness Brand Manager, Erica Andersen. The real shebang for chia comes from its omega-3 to omega-6 essential fatty acid content. Goodness chia seed oil has a unique and proven 3:1 ratio of omega 3 to omega 6, which promotes anti-inflammatory qualities. This gives chia seed oil an edge for a millennial user. “Millennials are looking for wellness products that’ll help calm, soothe and protect skin from environmental effects like pollution and make them look and feel their best,” says Andersen. “Top of mind for them are safe, natural, superfood ingredients that are good enough to eat. Our Certified Organic Chia Seed Oil fits the ticket really well.” And the launch of new products into the range certainly expands on all these trends. Be Cool Mist Toner includes coconut water, chia, celery and cucumber extracts 36

FMCG BUSINESS - FEBRUARY 2017

base formulation, this product offers every day hydration with daily sun protection, a year-round must-have in the New Zealand climate. It’s also clinically proven to reduce oxidative stress by 84%** meaning it’s perfect to protect skin against free radical and pollution damage. To get growing with Goodness, call CS&Co on 0800 604 604. *IRI MarketEdge Grocery, Value Sales, 6 Months to 04/12/16 vs 6 Months to 06/12/2015 ** Independent clinical in vitro test. Results obtained by analysing antioxidant activities on human macrophage cells.

Natural Cottons

in its formulation, while Break-up Make-up Balm introduces a unique form of cleansing and make-up removal to the grocery channel. This balm melts into a silky oil that dissolves every bit of make-up, which is then simply wiped away with a hot cloth. Goodness best-seller Every Morning Moisturiser now has a twin in new Every Morning Moisturiser SPF15. A similar

Cottons is leading the way across the world, as a proven successful natural feminine hygiene brand. Still family owned and run, Cottons’ range of pads, tampons and liners are made using the highest quality first grade, 100% chemical free cotton, providing women with a natural choice that actually works. The difference with Cottons is just as the name suggests - cotton. Natural cotton has many amazing properties, including getting stronger when wet, and being naturally hypo-allergenic, which is perfect for sensitive skin. While other brands on the market may look like cotton, in reality they are far from

A 100% chemical free cotton choice for women, now in N.Z. Cottons was designed to provide women with a natural choice in feminine hygiene. Cottons range of tampons, pads and liners are made with 100% chemical free cotton, for superior comfort and feel. If you are interested in finding out more about Cottons, contact your Topline Marketing representative.

09 550 5155 www.toplinemarketing.co.nz

[ feature ]

MILLENNIALS ARE LOOKING FOR WELLNESS PRODUCTS THAT’LL HELP CALM, SOOTHE AND PROTECT SKIN FROM ENVIRONMENTAL EFFECTS LIKE POLLUTION.” ERICA ANDERSEN, GOODNESS BRAND MANAGER

it. “Most brands are made with materials like rayon, polypropylene and polyethylene, which if you’re a woman with sensitive skin could make getting your period an extremely irritating and uncomfortable experience,” explains a spokesperson. “Cottons tampons are made using 100% chemical free cotton, which is cleaned to a clinical standard, removing all chemicals through an oxygen cleansing process. No bleach and no outer covering, our tampons are bio-degradable and hypoallergenic. They come in three different absorbencies, mini, regular and super and work just as well as the major brands on the market.” “Our pads and liners are made using a unique 100% chemical free cotton coversheet, which is extremely comfortable, breathable, and like all our products, hypoallergenic. Our range includes ultrathin pads in two absorbencies, an overnight option and two types of panty-liners.” Cottons has also developed a maternity range, designed specifically with new mums in mind, taking care of them during those first few months after giving birth. “Our Nursing Pads are highly absorbent with adhesive strips so they stay in place. Just like all our pads, they have a 100% chemical free coversheet and are specially contoured to fit breasts. Our Maternity Pads are highly absorbent for post-natal bleeding, developed alongside a leading maternity hospital, designed with double wings and a 100% chemical free cotton coversheet so they are extremely comfortable and breathable. “For women with sensitive skin, or those who simply want to make a more natural choice for their body and the environment, Cottons range of pads, tampons and liners will make any period a naturally comfortable experience,” says the spokesperson. For more information please contact your Topline Representative, or email zoek@cottons.com.au. www.toplinemarketing.co.nz

SugarBaby SugarBaby - where the sun is always out and sunless tanning is in! Senior Brand Manager, Kate Feek says: “We are very excited that we are launching this amazing and iconic brand into Grocery. We all love to look good in Summer, and having a tan helps achieve this, but because we need to be so careful with exposure to the harmful effects of the sun, particularly in New Zealand, what better way to achieve an instant colour to our skin safely. Available in a selection of formats to help us chose the application and colour that suits, it also helps to maintain that sunkissed look long after summer is over. Founded in 1998, SugarBaby has grown into a globally recognised, 38

FMCG BUSINESS - FEBRUARY 2017

iconic Australian beauty brand, famous for their Suntanned Sweeties range. SugarBaby is all about beach culture, splashes of glamour, girl power and alluring price-points. SugarBaby seeks quality, excellence and optimum performance. This is what sets SugarBaby apart from the rest. Our customers know it and our suppliers respect it. SugarBaby is • vegan friendly • proudly cruelty-free • consistently innovative (formulation, packaging, merchandising concepts and everything inbetween). All tanning products are infused with SugarBaby’s sweeter than summer signature scent. Suntanned Sweeties is a comprehensive tan care range which includes: Spray on Tan, Mouse, Gradual Tans and an application mitt.

Touch of Silver Anyone with blonde or grey hair knows the challenges of keeping it looking vibrant and glossy, when the elements around us conspire to make it look yellow, brassy and dull. And summer weather is no exception with all that sun and water. PRO:VOKE® Touch Of Silver is an expertly created range specifically for blonde, platinum, white and grey hair. The range enhances hair colour and ensures best toned results with a unique active violet pigment that neutralises yellowing, brassiness and dullness. Developed by salon professionals over 30 years ago, this purple shampoo was the original and first in the haircare market. Still a hair hero to this day, the Brightening Shampoo works on the principal of colour theory to target and neutralise any yellow or brassy tones for brighter hair and visible results after just one wash! This range was introduced into New Zealand from the UK late last year, but is already gathering great momentum and is being actively sought out by customers. For more information on Touch of Silver (RRP from $12.95) and SugarBaby (RRP $27.99) phone 0800 804 711.

[ feature ] Zealea Zealea protein powder has untapped potential. Retailers can grow this category by offering a lower RRP (compared to that available via the fast growing NZ based internet retailers offering similar products). “We believe there is great potential for growth in this category by attracting customers that are currently only buying these types of protein products online, due to a lower price than currently available in most supermarkets and retail stores,” says Matt Bowman of Zealea Health. Zealea Whey based Protein drink powder makes a high protein, low carb, 99% fat free shake. Each 1kg bag (RRP $41.99 inc.) contains 33 x 30g serves, which the customer mixes with 250ml water

Zealea Fast Facts • • • • • • •

Attractive RRP High protein Low carb 99% fat free Easy mixing Rich in ﬂavours Nice smooth taste

to obtain over 23g protein (over 77g protein per 100g powder). The product comes in a bold, custom-branded, self-standing, resealable foil bag complete with scoop. “We make the product using local and imported ingredients in our Wellington-based, MPI-approved factory in order to meet cost and quality consistencies required for a cleaner formula,” says Bowman. “We have worked hard to formulate our product with minimal additives for maximum protein delivery whilst not sacrificing taste. Only two ingredients are added to the main protein component of the product. No anti-caking agents or added colours are added and the absence of any thickeners means easier mixing and no ‘slimy’ texture, which is sometimes experienced by users when drinking products containing thickeners such as gums etc. Where possible, natural flavours are used such in the case of our Banana and Chocolate flavours.” “We designed this product with the intention to allow retail/ supermarkets to offer an extremely competitive RRP whilst still providing an attractive margin.” Online marketing support points customers to the appropriate store via geographic ad targeting. It is available in cartons containing six retail units - flavours include Banana, Chocolate and Vanilla. Phone Matt Bowman for more details, or to order on 021 321 123 and 0800 300 009, or email sales@zealea.co.nz. Foodstuffs members: These products are set up within the food exchange system. Article Nos - 5201860, 5201829, 5201830.

FMCG BUSINESS - FEBRUARY 2017

[ good business ]

FMCG giants sign Healthy Kids Pledge Fonterra and Nestlé were the first fast moving consumer goods companies to sign up to the Ministry of Health’s Healthy Kids Pledge in New Zealand. Food and Grocery Council Chief Executive Katherine Rich says the industry commends the companies for their leadership and their longstanding commitment to producing and promoting good nutrition. “While Fonterra and Nestlé have led the way, I have no doubt that many other New Zealand food and grocery companies will also adopt the pledge over time,” says Rich. “One of the things we emphasised to the ministry was that for many of our member companies, this is a continuing journey. The amount of reformulation and innovation over the past decade to reduce sodium, fat and sugar where possible has been significant. Consumers have a greater number of healthier options today than ever before. “We would like to commend the Ministry of Health for their development process and their pragmatic approach in creating a general pledge that a broad range of companies can engage with. “Many FGC member companies are also involved in additional global initiatives such as the Consumer Goods Forum and International Food & Beverage Alliance Pledges, and these complement what the ministry has developed. “The ministry has done a great job bringing to life Minister of Health Jonathan Coleman’s ambition for the food industry and the ministry to work together to consider ways to reduce childhood obesity.”

The healthy kids industry pledge We understand the serious impact of obesity on the health and well-being of the children of New Zealand. We will identify and contribute solutions that will aim to help reduce rates of obesity for all children. This means we are committing, where appropriate, to: • consider options for innovation and the reformulation of products to ensure children and their families have easy access to healthier food options • continue to enhance labelling to help families make healthy choices for their children, including supporting the government’s health star ratings • continue to provide fact-based information to help families make healthy choices for their children • support responsible marketing, advertising, and sponsorship of foods to children that supports healthy nutrition • support the government’s efforts to address differences in health outcomes for different population groups, particularly Māori and Pacific peoples • identify and communicate specific activities that we will undertake within our business, and publicly report on our progress.

Foodstuffs trials electric delivery vans

The Energy Efficiency and Conservation Authority (EECA) is supporting Foodstuffs trial of electric delivery vans across its New World and PAK’nSAVE supermarkets in 2017. “This is the first time a commercial electric vehicle fleet of this size has been trialled in New Zealand,” says Chris Quin, CEO, Foodstuffs 40

FMCG BUSINESS - FEBRUARY 2017

North Island Ltd. “The funding will go towards the implementation of 28 zero emission electric delivery vans at New World and PAK’nSAVE stores across the North and South Island.” Quin adds: “It fits in perfectly with Foodstuffs’ drive to reduce environmental impacts and support brand NZ. Electric vehicles offer the potential to both reduce the business’ dependence on imported fuels whilst at the same time reducing road based transport emissions by 100%.” “Add to this the fact the electricity powering the vehicles is 100% locally generated and over 80% renewably generated through hydro, wind and geothermal sources – meaning we are investing in both New Zealand‘s economy and its environment.” The Nissan e-NV 200 delivery vans will be imported over the next year from Europe. Once charged they are capable of travelling up to 150 kilometres at a time without generating noise or emissions.

New Zealand’s largest FMCG audience eNewsletter

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subscribers

Print Mag + eMag

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Monthly

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FMCG Business is New Zealand’s leading source of business information for the FMCG industry. Our media community consists of 25,583 industry professionals. Key decision makers & influencers include: • Supermarket owners • Directors

Website

• Supermarket managers • Producers

In addition www.fmcgbusiness.co.nz is the online content library, and includes an extensive array of news items and content plus an internal search engine. FMCG Business also has a rapidly growing social media reach of 3,320 followers courtesy of content shared through dedicated Facebook and Twitter pages.

The backbone of the FMCG Business brand is the magazine (11 Issues annually, print & digital). The circulation is 8,000 print copies nationally and 2,906 digital. A weekly eNewsletter keeps 7,200 opt-in subscribers up to date between magazine editions by featuring the latest news content, tips, trends, events, product releases and giveaways.

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RISE OF THE CONSCIOUS CONSUMER More shoppers are willing to pay for ethical products than ever before.

Fairtrade tea harvest

Three out of every four Kiwis are likely to pay more for organic, sustainable and ethically produced products than they were in 2015, with Fairtrade and the Eco Store recognised as leading sustainable brands in New Zealand. According to Colmar Brunton’s Better Futures Report 2016, which surveyed more than 13,000 people throughout New Zealand, 71% of consumers said they were prepared to pay more for sustainable and ethically produced products, a 6% year-on-year increase from 2014. Highlighting the Kiwi passion for sustainability and ethics, 83% of respondents stated they would stop buying a company’s products if they heard about them being irresponsible or unethical, and 72% said it is important for them to work for a company that is socially and environmentally responsible. The upward trend in sustainable consumerism is reflective of rising concerns about the origin of food and other products as well as a desire for easier access to information about the working conditions of farmers and workers in developing countries. These developing consumer preferences at a local level also mirror global trends, with similar findings being published by Euromonitor International in their Global Changemakers Survey 2016. 42

FMCG BUSINESS - FEBRUARY 2017

Transforming the way the nation shops Fairtrade Australia & New Zealand CEO, Molly Harriss Olson said the survey reflects how far the Fairtrade movement has come over the past decade, as campaigners and businesses have worked together to transform the way that the nation shops. “In the past year retail sales value of Fairtrade products across New Zealand and Australia has grown by more than 17% to $379 Million (NZD).” The purchases were made from 52 licensees and traders in New Zealand, and 192 in Australia. While environmental concerns continue to grow in 2016, the report also highlights that social issues are occupying the minds of Kiwis. Over 60% of Kiwis rate industry and innovation as being very important to creating a better future for our planet, followed by 65% rating gender equality as being very important. “These findings reflect the experience of Fairtrade and the importance of our work throughout the Pacific region,” Harriss Olson said. “Continued retail sales growth has enabled Fairtrade to provide more support and services to farmers and workers throughout the

[ good business ] Pacific, including the successful movement and expansion of gender equality and technology innovation programs.” “It is wonderful to see the thoughtful shopping of New Zealanders translate into profound impacts on the lives of thousands of people in the neighbouring Pacific,” added Harriss Olson.

About the better futures report The Better Futures Report provides key insights into consumer perspectives on sustainability and how this has changed over time. Following the implementation of the UN’s sustainable development goals, it also sets out which of these goals New Zealanders feel most passionate about and want to see prioritised. Finally, the research demonstrates the potential reputational rewards for organisations who are leaders in sustainability, as well as the risks for those who fail to act.

About Fairtrade Fairtrade is an independent certification system that offers farmers and workers in developing countries a better deal and improved terms of trade - giving them an opportunity to improve their working and living conditions, plan for a better future and create brighter opportunities for their families and local communities.

Fairtrade Australia & New Zealand CEO, Molly Harriss Olson

Fairtrade provides farmers and workers in developing countries with a fair price (the Fairtrade Price) for their produce, helping protect them from damaging fluctuations in world market prices. They also receive an additional sum of money (the Fairtrade Premium) for investment in social, economic and environmental development in their community, such as educational and medical facilities.

• 71% of Kiwis say they are willing to pay more to get the best organic, sustainable & ethically produced products available.

RETAIL SALES VALUE OF FAIRTRADE PRODUCTS ACROSS NEW ZEALAND AND AUSTRALIA HAS GROWN BY MORE THAN 17% TO $379 MILLION.” FAIRTRADE AUSTRALIA & NEW ZEALAND CEO, MOLLY HARRISS OLSON

• Fairtrade and Eco Store are top of mind as leading sustainable brands. • 83% of Kiwis say they would stop buying a company’s products if they heard about them being irresponsible or unethical.

CHOOSE FAIRTRADE AND MAKE A DIFFERENCE Support farmers to get a fair deal and protect the environment.

WWW.FAIRTRADE.ORG.NZ

[ profile ]

CHOCOLATE THERAPY

choc Chocolates was a long time coming. Murray Langham, sole owner and co-founder of the business had a dream and it involved chocolate (of course), counselling, psychology and well-being. He turned that dream into reality in November 1998 with the publication of his book “Chocolate Therapy – Dare to discover your inner centre”. Now published around the world in six languages the dream became reality. And in December 2002, Schoc Chocolates was born, located in gourmet Greytown in a tiny turn-of-the century cottage on the main street.

Point of difference and innovation Langham says: “With so much choice of chocolate, we needed to find an innovative way to display and categorise the tablet selections, to allow the public to more easily choose their favourite chocolate style. After much research and planning ‘La Bibliothèque du Chocolat’, or library of chocolate was born, with over 80 different flavours to try and have ‘The Schoc Experience’. Selections are categorised by spiced, herbal, floral, citrus, percentages of darkness, variety of chocolates and more.” For Langham, the chocolate experience has never been just about eating or selling quality chocolate. For him, there is a much greater experience available; he has travelled New Zealand and the world, educating the public on how to better enjoy the taste 44

FMCG BUSINESS - FEBRUARY 2017

sensations, rather like you do with a better understanding of a great wine. Then there is the journey of self-discovery that he has taken myriads of people on over the years by helping people understand what your chocolate taste preferences say about you and how they change over time. Langham says: “Our chocolate beans are sourced from Tanzania, Java, Papua New Guinea, Cuba, Ecuador, Grenada, Dominican Republic, Ghana, Trinidad, Madagascar and Sao Thome. Chocolate from these gourmet beans contains a minimum amount of sugar added for flavour enhancement. Ethical trading is key to our business. Importantly, all our growers are treated fairly and respectfully.

We believe in sustainability, improving farmer livelihoods and doing business responsibly; we would not have it any other way.” The flavourings are organic wherever possible and sourced locally. No extra sugar (apart from caramels) or any preservatives are added and only whole and real flavours used. The base chocolate is hand-crafted using classic techniques. Langham and his chocolatiers are true artists with the diversity and array of chocolates available to suit every occasion: • For those just wanting the taste sensation, you can choose from the array of individually packaged tablets, boxed chocolates and truffles, or purchase individual chocolates and truffles. • For those with a love of shoes and chocolate, this is the place to merge those two passions with the most beautifully made and painted chocolate shoes available. • Bagged chocolate choices such as dipped apricots and lemon slices - or for the true New Zealander the delicious pineapple bites - are sensational! • For special times of the year like Valentine’s Day, Easter, Mother’s Day and Christmas there is a wide choice of beautiful themed options to choose. • For lovers of drinking chocolate, there is a great selection of Schoc Chef Schocolate for purchase, which can be used to make your very own Hot Schocolate taste sensation or used in cooking to really enhance the flavours of your food. You can purchase Schoc Chocolates online and in retail stores in Greytown and Wellington. For those further afield, you can purchase Schoc Chocolates in about 40 selected stores, who must match Langham’s fine food ethos and meet strict display conditions such as air conditioning. www.schoc.co.nz - phone (06) 304 8960 - email info@schoc.co.nz

[ profile ]

WESTGOLD

Offering category growth with award-winning butter

ntil recently, Hokitika-based dairy co-operative Westland Milk Products had a minimal profile in New Zealand’s FMCG industry, even though Westland’s dairy ingredients are used in some of New Zealand’s best loved brands such as EasiYo and Cookie Time. In March 2016 that changed when Westland’s Westgold Unsalted Butter won the Food for Chefs Champion Butter medal at the prestigious New Zealand Champions of Cheese awards. The salted variant also took home a bronze medal. The awards gave an immediate boost to Westland’s New Zealand launch plans. Westgold has been selling millions of blocks of butter to key overseas markets including Azerbaijan, China, Australia and Singapore. Now Kiwis are getting the chance to experience New Zealand’s champion butter. The brand carves out a new position in the market for the ’everyday gourmet’, offering excellent quality at an affordable price, backed by generations of West Coast dairy farming and manufacturing knowhow. Westgold butter has enjoyed rapid growth in New Zealand, being picked up by both major retail groups as well as speciality outlets such as Moore Wilson’s; and the brand has achieved sales of around 500,000 units since launching in March 2016. Chief Executive Toni Brendish says that while the co-operative will continue its exportled programme, the New Zealand market represents an exciting opportunity to offer retailers and consumers here something new in the dairy category. “We are proudly owned by our farmer shareholders, the vast majority of whom are found on the magical West Coast. The West Coast/Tasman region has New Zealand’s highest proportion of jersey and jersey-cross cows* and we think this, combined with our traditional churning technique helps make Westgold butter so special,” she explains. “Consumers want to feel connected to the people behind the brands they choose, so we’re bringing our brand story to life through the experiences of our farming families.” Brendish, approaching her fifth month as Westland’s CEO, brings a fresh focus to Westland’s move into the New Zealand FMCG sector, and its goal of increasing the proportion of high value products in its portfolio. She has more than 30 years’ general management

Pippa and Noel Robb on their West Coast farm.

experience in the consumer goods sector in Asia, Australia and New Zealand. She joined Westland with a strong resume that includes brand powerhouses such as Danone Nutricia Early Life Nutrition, Danone Dairy, KimberlyClark, and Colgate Palmolive.

Westland Milk Products CEO Toni Brendish.

“Throughout the world we are seeing the rise of consumer demand for natural, wholesome foods, and a return to the simplicity that products like butter offer. We’ve also welcomed the growing discernment in consumer palates, and people’s desire to become ‘Masterchef’ of their own kitchen. We’ve gathered recipes from our farming families to share with our consumers, and a recent Facebook promotion of our ‘Waitaha Yoyos’ encouraged more than 1000 people to click through to our online recipe page – not bad for a brand less than six months old in New Zealand.” In 2017, Brendish says, Westland will be implementing Westgold’s distribution throughout the North Island to make the brand available in most supermarkets nationwide. “We believe we offer retailers a genuine trade-up opportunity to grow category value. Feedback to date tells us that, just like our fans in Azerbaijan, Kiwi consumers are loving Westgold.” * Source: New Zealand Dairy Statistics, 2015-16

FMCG BUSINESS - FEBRUARY 2017

[ legal advice ]

Maintenance and repair – are you liable as a tenant?

Nick Lornie Solicitor STEINDLE WILLIAMS LEGAL LIMITED www.swlegal.co.nz

TENANTS ARE USUALLY LIABLE FOR ANY DAMAGE NEGLIGENTLY CAUSED TO THE PREMISES.”

s a tenant, it may be unclear to you under your lease which aspects of maintenance or repair you are liable to pay for as against the landlord. Whether you have to pay for maintenance and repair of your premises depends largely on the content of your lease, and when it was entered into. Whether or not you are liable can become particularly hazy, especially where equipment or features of the building have been brought in by you, as opposed to being supplied by the landlord. The special provisions and outgoings in your lease are worth checking for anything in relation to your obligations to repair or maintain landlord’s fixtures under the lease. Your lease will usually contain provisions which set out specifically who is to pay for what. Tenants are required to keep and yield up the premises in their existing condition at the time of entering the lease, and the tenant would have to meet the cost of repair. The general rule for leases is that tenants are usually liable for any damage negligently caused to the premises. This could include putting a hole in a wall shifting objects, spillage of chemicals and so on. That is unless there is any express provision in the lease which frees the tenant of liability for such damage.

Buying a business A common problem arises where you purchase a business, take an assignment of the lease, but do not know the condition that the premises were in when you purchased the business. It is helpful that you find this out – that is the premises’ commencement condition, when you purchase. Another factor in whether you should pay for an outgoing depends on whether or not the item to

FMCG BUSINESS - FEBRUARY 2017

be repaired comprises part of the building services, or part of the tenant’s fixtures and fittings. By way of example, whether you as a tenant would have to pay for repairs to a heat pump would depend on whether the unit is included as part of the building services that are the landlord’s, or part of your fixtures. If the heat pump forms part of the building services, the landlord can repair the heat pump and “on charge” you. However if the unit is your unit, then you have more scope in terms of using your own contractors and determining how far you go in maintenance. Most leases will provide that the tenant is not liable for any inherent defect to the premises. Examples will include weathertightness problems, defective building work undertaken by the landlord or where building materials used were subject to a manufacturers recall. Repairing issues arising from inherent defects in the building, such as structural issues, will be the responsibility of the landlord – except in the case of negligence of the tenant. The outgoings clause contained in your lease may provide the answer to the question of what you will be responsible to pay to the landlord in respect of services included. However important factors to consider are: • If the work is structural in nature • If it arises from an inherent defect • Who owns the fixture or chattel. Due to the various forms that leases can take and the different versions that have been offered over the years, as outlined above it is critical that you are careful in examining the content of the lease in determining what costs you are responsible for.

[ health & safety ]

Health and safety risks for delivery drivers and sales reps

ales trips are the first step and deliveries are the last step to get goods on sale, but sometimes they are forgotten when it comes to health and safety requirements. Manufacturers tend to be highly aware of their safety obligations in their factories, but forget that the cab of a delivery vehicle or a salesperson’s car is a place of work and is subject to the same obligations under the Health and Safety at Work Act. The driver is in charge of the vehicle and stock, and is an ambassador for the company, but companies can be held responsible for how their drivers drive if policies and training aren’t delivered effectively. Improving driver skills is important. Companies that employ drivers have potential risk areas: • Drivers that are most at risk of an accident are aged 16-30 and driving at work • Drivers from 24 countries can simply exchange their full car licence for a New Zealand one without ever having to learn the Road Code. This includes many European countries where signage and road markings are different and they drive on the right. • Drivers that passed their full licence test in a provincial town several years ago moving to a job in the city might never have seen a T3 sign, or have had any tuition for, or experience in, driving on a motorway. • Driving for work can be a sedentary occupation which can lead to health and fatigue issues. • Drivers simply forget or misunderstand road rules and put themselves at risk of fines, disqualifications and (potentially) reckless driving charges. An example of how this can easily happen is school buses: the speed limit past a school bus that has stopped to pick up children is 20km/h in both directions. It’s easy to miss this on a rural road and trundle past at 80km/h, which means 60km/h over the limit. That could lead to an instant loss of licence, a huge fine and a court appearance. The driver would lose their job, and the company

would have to bear the cost of recruitment and the disruption of losing a productive staff member. If the driver had hit a child because of speeding past the bus, the company could be held partially liable if it was shown that it hadn’t provided the opportunity to learn the relevant road rules. We take driving for granted and, for many people, their driving ability is something they hold an emotional connection to; no one wants to be told their driving could be better. Fortunately there are ways in which you can gently (but quickly) improve your drivers’ abilities while covering health and safety compliance. One system is DT Driver Training (www.drivingtests. co.nz). The website is used by more than 70,000 people every month to ensure they know the road rules, and to learn advanced driving techniques and health and safety information related to driving. A company can invite its drivers and manage their training, covering off Health and Safety at Work Act compliance. Drivers can also upload their licence endorsements and qualifications complete with expiry dates, while managers and the licence holders receive update reminders. Rules change and our memory of facts fades; we see other drivers doing things wrong and it becomes normalised. How much do your drivers remember from their learner licence test? Why not have them try a free mock theory test at www.drivingtests.co.nz, and if you want to manage their training, check out the premium options with fleet safety, forklift truck theory and advanced driving modules.

Darren Cottingham, is a road safety campaigner and the Founder of DT Driver Training.

FMCG BUSINESS - FEBRUARY 2017

[ events ]

Search for the best butchers in NZ New Zealand’s national butchery team, the Pure South Sharp Blacks, are set to compete in the 2018 World Butchers’ Challenge in Ireland and the hunt is on for the best six butchers in the nation. Butchers are invited to nominate themselves for a place on the national squad of six, who will travel to Belfast in March, 2018 to represent New Zealand. The World Butchers’ Challenge is designed to showcase the highest level of skill in butchery and involves each team breaking down a side of beef, pork and a whole lamb into a themed display of value-added cuts all within a three-hour timeframe. 2016 team captain, Corey Winder says the upcoming The Pure South Sharp Blacks. competition is already delivering a hefty task as it looks to grow from four nations to over eight. “I’ve competed for the last six years from when it all began in 2011 as a Trans-Tasman competition; it’s been gaining momentum ever since the UK joined in 2013 and this year France competed for the first time. “Now that the competition has been set for Ireland in 2018 we’ve had interest from Scotland, Germany, Italy and Spain. Even though France were newcomers this year, they took out the title, so there’s no doubt in my mind these new countries will raise the bar even higher,” says Winder. The Pure South Sharp Blacks won the competition three

consecutive years in a row, from 2013 to 2015 and are seen as worldleaders when it comes to innovation in butchery. Team Manager and selector, Todd Heller says he’s looking for butchers with not only technique to rival the best in the world but those with passion and a love of the industry. “What the Pure South Sharp Blacks do is not dissimilar to any of our national sporting teams; they’re representing us in an international arena, putting New Zealand on the map,” says Heller. The team is sponsored by Pure South, Beef + Lamb New Zealand and New Zealand Pork. For further details and a nomination form visit rmnz.co.nz

The Grocery Charity Ball is back Mark your diaries - the annual Grocery Charity Ball is back again this year. The ball is due to be held on Saturday the 2nd of September at the Langham Hotel, Auckland. Approximately 650 guests are expected for a fantastic evening filled with food, wine, entertainment and networking. The beneficiary of the ball will be Diabetes New Zealand - a nationwide charity that represents and supports people with diabetes. The organisers are keen to hear from sponsors who are interested in being involved with this premium event. If you’re interested in sponsoring please contact Jackie Coyne at S2N Events on 0274 946 211 or jackie@s2n.co.nz. 48

FMCG BUSINESS - FEBRUARY 2017

Grocery Charity Ball Trustees with Coastguard Auckland representatives at last year’s ball - Ross MacKenzie, Hansells; Leanne Murphy, Mexicali Fresh; Duthie Lidgard, Coastguard Auckland; Don Graham, William Aitken & Co; Mike Purchase, Coastguard Auckland; Karen Kelly, Endeavour Consumer Health and Scott MacKay, RFC.

The Food Show is closer than you think! The Food Show, New Zealand’s favourite food and wine event, is coming to Auckland, Wellington, and Christchurch from April to July 2017. Get these dates in your diary now to make sure you don’t miss out!

The Food Show Christchurch

Annabel Langbein is the headline celebrity cook at all three shows in 2017.

7 – 9 April 2017 Fri – Sun: 10am – 5pm Horncastle Arena (formerly known as Vbase), Jack Hinton Drive, Christchurch

The Food Show Wellington 26 – 28 May 2017 Fri – Sun: 10am – 5pm Westpac Stadium, Waterloo Quay, Wellington

The Food Show Auckland 28 – 31 July 2017 Thu – Sat: 10am – 5pm, Sun: 10am – 5pm ASB Showgrounds, Greenlane, Auckland Annabel Langbein is the headline celebrity cook at all three shows in 2017. Annabel, ‘The Free Range Cook’, will provide multiple cooking demos and book signings in Auckland, Wellington, and Christchurch, plus meet & greets with VIP visitors in Auckland. The Food Show is delighted to have one of New Zealand’s most recognisable, popular, and influential cooking personalities on board – and anticipate her commitment will make the 2017 shows the best yet!

About The Food Show The Food Show is New Zealand’s largest, most popular, and most successful series of consumer culinary events. The shows are built around the central concept of helping people source excellent ingredients, discover great recipes, learn new cooking techniques, and entertain friends and family at home. Established in 2000, The Food Show has helped hundreds of Kiwi businesses to gain a foothold in the local market, and many have gone on to become highly successful. In 2016, the shows attracted 52,537 visitors nationwide who spent an estimated $8.4 million on-site. For more details visit www.foodshow.co.nz

Events 2017 FEBRUARY

MAY

11 MARLBOROUGH WINE & FOOD FESTIVAL Brancott Vineyard, NZ www.marlboroughwinefestival. co.nz

26-28 THE FOOD SHOW WELLINGTON Westpac Stadium Wellington, NZ www.foodshow.co.nz

15-18 BIOFACH The world´s leading Trade Fair for organic food Nürnberg, Germany www.biofach.de/en

JUNE

MARCH 14 NZ CHAMPIONS OF CHEESE AWARDS Auckland, NZ www.nzsca.org.nz/cheeseawards/

APRIL 7-9 THE FOOD SHOW CHRISTCHURCH Horncastle Arena Christchurch, NZ www.foodshow.co.nz

4-5 NATURALLY GOOD EXPO ICC Sydney Exhibition Centre Sydney, Australia http://naturallygood.com.au/

JULY 28-31 THE FOOD SHOW AUCKLAND ASB Showgrounds Auckland, NZ www.foodshow.co.nz

SEPTEMBER 2 GROCERY CHARITY BALL The Langham Auckland, NZ

Visit the websites and contact the event organisers for further details and updates. To have your event listed in FMCG Business email: trubanowski@intermedianz.co.nz. FMCG BUSINESS - FEBRUARY 2017

[ social sphere ]

Out & About At a media event in Auckland, Charlotte Sullivan of Westland Milk Products explains how to cook perfect Whitebait fritters with Westgold butter.

Gunnar Waagen from in TingvollostKraftkar World Norway accepts the rd for Champion Cheese Awa . Kraftkar blue cheese

At the opening of New World Pa pakura, Owner Operator Peter Lynch with wife Gill Lynch, son Sam and daughte r Mae.

(L to R) Fonterra Chairman John Wilson, MP for Taupo Louise Upston, South Waikato Operations Manager Sam Mikaere, Raukawa iwi member Ruthana Begbie, South Waikato Mayor Jenny Shattock and Fonterra COO Global Operations Robert Spurway open a new state-of-the-art milk powder dryer at Lichﬁeld.

ing the Bak r pported oberts su as Mince Pies fo cR M e ik m s. st rM ie ri p te h e n C d ’s se a n tio TV pre ome-m Associa tch of h Industry ith a ba uction w a ty ri a Ch

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 Maison Therese’s Summer Set (worth $30), including six of their ﬁnest relishes and chutneys perfect for entertaining!

SNAP & WIN! 50

FMCG BUSINESS - FEBRUARY 2017

• Chilli Tomato Relish • Balsamic Onion Relish • Beetroot Relish • Piccalilli • Tomato Relish • Old Fashioned Apple Chutney

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

D N A L A E Z W NE

THE ASIAN BEER BOOM

LEADERS FORUM

■

GOOD GEORGE BREWING

■

KOSHER WINE

NEW ZEALAND’S LARGEST LIQUOR AUDIENCE

[ editorial & news ]

An exciting year ahead! AFTER A busy festive season, it’s nice to be able to sit back and enjoy the new year - with the odd stroll to burn off those extra kilos, of course! We’re excited to The Shout Editor kick off 2017 with Charlotte Cowan The Shout Leaders Forum, where liquor industry experts predict new trends and developments that we can expect to see coming our way. From craft beer to low-alcohol options and a focus on innovation, as well as health and well-being, it’s going to be an interesting year for the FMCG liquor industry. For lovers of Kirin and Tiger, award-winning beer writer Neil Miller takes a look at the increasingly-popular Asian beer market, and Cameron Douglas MS shares his thoughts on Pinot Noir. We also get the inside info on creating Kosher wine from Marlborough vineyard owner Lindsay Dahlberg. If you’d love to read more from The Shout, then head along to our website www.theshout.co.nz and sign up to our e-newsletter for weekly liquor news straight to your inbox. And don’t forget to ‘like’ us on Facebook @theshoutnz. Have a fabulous February!

D NEW ZEALAN

PUBLISHED BY The Intermedia Group Ltd 505 Rosebank Road, Avondale Auckland, 1026, New Zealand ph: 021 361 136 MANAGING DIRECTOR Dale Spencer dspencer@intermedianz.co.nz EDITOR Charlotte Cowan ccowan@intermedianz.co.nz ph: 021 774 080 SALES MANAGER Angela Bowes abowes@intermedianz.co.nz ph: 021 130 6824

FMCG BUSINESS - FEBRUARY 2017

The Shout announces new wine medals!

THE SHOUT and Master Sommelier Cameron Douglas are excited to announce our first-ever wine medals, available from 1 February 2017. Start the new year with new initiatives and make your wine stand out from the rest by displaying these stickers on your bottles. Globally the most widely accepted scoring system for recognising quality wine is the 100-point scale and serious wine competitions, such as the Decanter World Wine Awards, have also adopted the point system. Show your customers your wine has been reviewed by one of the best by proudly displaying your review points. The Shout wine medals are available for reviews of 88-98 points. “Wine producers in New Zealand leverage more wine sales as a result of having stickers on bottles,” says Cameron Douglas MS. “I want the scores I give a wine noticed first. If a wine buyer is interested in who gave that score, then they’ll have to pick up the bottle to discover it is that of a Master Sommelier.” The Shout wine medals are available for $45.00 per thousand + GST. For more information contact Sales Manager Angela Bowes on 021 130 6824 or abowes@intermedianz.co.nz.

Nielsen launches Liquor Benchmark GLOBAL MEASUREMENT company, Nielsen - with the recent addition of The Bottle-O scan data - has launched The Liquor Benchmark, a measurement of liquor retail sales across seven of New Zealand’s largest traditional liquor retailers. The Liquor Benchmark takes weekly retail sales data, at item level, from seven liquor retailers and reports a total view of the market, which until now has not been available in the New Zealand market. Geoff Smith, Commercial Development Director at Nielsen, says the biggest value to liquor suppliers is how the benchmark will help their conversations with retailers. “Up until this point, liquor suppliers have only been able to share their performance with each retailer individually because of commercial sensitivities,” he says. “This meant they could not talk about their performance relative to the total market.” The benchmark will allow retailers and suppliers to compare their performance and identify new opportunities for growth as well as new business generation, without disclosing an individual retailers’ sales information to competing retailers. “The benchmark is similar to the total sales read provided to supermarkets and convenience stores,” says Smith. “Suppliers will now be able to bring proof points around price, ranging, distribution and promotions to retailer meetings which will allow for collaboration that aims to drive growth.” Additionally, retailers will be able to benchmark their own performance against the market as well as work with suppliers and brand owners to improve their in-store performance.

[ news ]

Go Low action group aims to reduce alcoholrelated harm A NEW action group headed by former Hospitality New Zealand Chief Executive Bruce Robertson is encouraging Kiwis to drink low-alcohol beer. The Go Low action group, made up of national hospitality and business organisations, is promoting the health and social benefits of low-alcohol beer (less than 3% alcohol-by-volume). “Moderation, responsibility and sociability is what it’s all about, and low-alcohol beer allows for all three,” says Robertson. “Take concerns about drink-driving. While it’s advisable that people don’t consume any alcohol and then drive, the fact is that low-alcohol beer offers a safer option for people who are driving and who do want to enjoy a drink. “It also offers the potential of taking pressure off police and hospital staff, for example, who often have to deal with the end-result of alcohol-related harm,” he says. Robertson says that while lowalcohol beer has jumped from 1% of all beer consumed in New Zealand to 5% in just three years, we are still a long way behind Australia, where overall consumption is more than 20%. “There’s a range of reasons behind this and we’ll be exploring the issues and solutions with key decisionmakers to see if we can get more Kiwis to Go Low. That includes working with government to develop policies that make the production, sale and consumption of low-alcohol beer more attractive,” says Robertson. Go Low’s Bruce Robertson

Super Liquor launches brand refresh SUPER LIQUOR has launched a brand refresh, transforming its nationwide stores to create an enhanced retail experience for customers. Approximately 125 fresh new-look stores have been upgraded over the past year, with a handful to be completed this year. As well as a refresh of their external signage, stores have upgraded lighting, counters and paintwork to improve the shopping environment and a fresh new look has been rolled out across all marketing and advertising material. Super Liquor National Operations Manager Greg Hoar says the new look is underpinned by four brand pillars: Super Convenient, Super Deals, Super Range and Super Service – all ensuring customers have an effortless and friendly shopping experience. “The aim is to be the brand of choice for sociable Kiwis, as well as New Zealand’s leading liquor retailer,” he says. For information on owning a Super Liquor franchise, please contact a Franchise Manager at the Super Liquor Support Office on (09) 523 4064.

Tough competition at New World Beer & Cider Awards MORE THAN 520 brews across 12 categories have been entered into this year’s New World Beer & Cider Awards, set to be judged in Wellington early this month. A panel of 18 independent judges will swirl, sniff and taste each brew to decide the very best beers and ciders in the country, during the robust two-day blind judging process. Each entry will be judged individually on its merits using a collaborative method which evaluates the brew’s qualities, balance and most importantly, drinkability. Chair of Independent Judges, beer writer and author Michael Donaldson, says the New World Beer & Cider Awards are a celebration of the industry. “The awards have been created to bring together some of New Zealand’s foremost beer and cider experts,” he says. “Their expertise will give New World shoppers access to some of the world’s best brews, along with the confidence to discover new styles and brands.” Gold, Silver and Bronze medals will be awarded to suitable worthy entries, with a Champion awarded to the top entry in each category. Shoppers can discover the Champion winners in 133 New World stores nationwide in April. FMCG BUSINESS - FEBRUARY 2017

[ social scene ]

Out & About At the Moët & Chandon Champagne Lounge at the ASB Classic

Kaity Alexander

and Kayla Culle

Amber Peebles and Brooke Howard Smith

Madeline Harman, Jessica Grubisa, Amber Peebles, Art Green and Kayla Cullen

Liz Lamb, Rose Keddal, Lana Van Hout and Makere Bradnam

International Credentials for Sommeliers

An exciting opportunity for the wine and hospitality sectors of New Zealand has once again become available to all wine and service professionals.

The Court of Master Sommeliers is returning to New Zealand to offer its highly prestigious certification programme. The first two levels of the four level Sommelier Programme will again be available to career minded individuals who have a passion for people, service, wine and beverages. The Court of Master Sommeliers is an internationally recognised examining body. Career minded individuals who want or require the correct credential for their chosen profession can engage in this programme to enhance their career, employment prospects and further validate their role in the hospitality sector. Sommeliers can and do make a significant difference to beverage sales in any On or Off-premise business.

WHEN AND WHERE Introductory Course and exams June 15th – 17th 2017: Lakeside Room, Villa Maria, Mangere, Auckland. $850.00 programme and exam fee*. Limited to 40 participants. Certified Sommelier Exams June 17th: Lakeside Room, Villa Maria, Mangere, Auckland $500.00 Exam fee. Limited to 20 Participants. ENQUIRIES to: Cameron J. Douglas – Master Sommelier, cameron@guildsomm.com For more information about the Court of Master Sommeliers please visit: www.courtofmastersommeliers.org. Comprehensive textbook available now NZ$80.00. *Members or new members of the New Zealand Sommeliers and Wine Professionals Association are offered a discount to the Level One course. http://www.sommelier.co.nz/

Tim Caroll Merchandise Manager, Liquor Countdown

Emma McCashin President Brewerâ&#x20AC;&#x2122;s Guild of New Zealand

Brendon Lawry Chief Executive Officer Liquorland

D NEW ZEALAN

2017

LEADERS FORUM

Emily Blumenthal Insights Manager New World

Richard Thomas Chief Operating Officer Villa Maria Estate

Campbell McMahon Chief Exective Super Liquor

FMCG BUSINESS - FEBRUARY 2017

[ leaders forum ]

RESPONSIBLE RETAILING Tim Caroll

Emma McCashin

Merchandise Manager, Liquor Countdown

President Brewer’s Guild of New Zealand

THIS IS a really exciting time to be working in this industry. After a longtime love affair with Sauvignon Blanc and Chardonnay, New Zealanders are really embracing and trying new wine varietals and different types of beers. It’s becoming more and more normal to see a great craft beer on the table at dinner for example, or to offer guests a selection of beers and wine across the price and flavour spectrum when entertaining at home. It’s a great challenge for us as retailers - satisfying this curiosity and meeting the needs of a range of customers who have a variety of different tastes. This year we’ve continued to see double-digit growth in craft beers as well as continued interest in premium wine. For 2017, this means we’ll see more new and interesting craft beers being added to our shelves, and for wine, if global trends are to be followed, Rosé and Prosecco will be the wine varietal of choice in the year coming. On the downside, the recent earthquakes in the South Island have impacted the Marlborough wine region and there have been mixed reports on the volume of wine and grapes lost by various wineries in this region. It is too early to tell if or how this might impact wine volumes in 2017. One of the biggest trends we’ve seen emerging has been around health and well-being - a number of manufacturers are recognising the increased customer demand for lower alcohol and reduced calorie or carbohydrate options in both beer and wine. For Countdown, we’re committed to supporting this by ranging low-alcohol options and ensuring that customers have choice. It’s part of being a responsible retailer, and we recognise that we have a role to play in helping customers see these types of products. Recently the Sale and Supply of Alcohol Act has been amended to ensure that non-alcoholic beer and wine can now be displayed in the alcohol area at supermarkets. This is good news for customers searching for these options. We want to make it easy for New Zealanders who enjoy the taste of beer and wine, but not the alcohol, to find these products in our stores. In turn, the more people who choose no or low-alcohol options, the more manufacturers will invest in innovation in this space. One exciting trend to keep an eye on this summer and well into 2017 will be wine and cider blends, which will no doubt be a hit once the sun really starts shining. We have a number of suppliers who are focusing on this space, including lower alcohol options.

FMCG BUSINESS - FEBRUARY 2017

A BIG YEAR FOR BEER

AS WE enter into 2017, beer drinkers will have more choices, more breweries and more beer styles than ever to choose from. The craft beer segment will continue to grow as consumers seek more flavoursome and interesting beer styles. New craft breweries will continue to enter the market. The Brewer’s Guild Beer Awards had a record 946 entries in 2016 (up from 858). Expect to see entries up again int 2017. Lower ABV and session beers will continue to increase in popularity. The Go Low Action Group headed by Bruce Robertson is “challenging misconceptions about low-alcohol beer, urging Kiwis who haven’t already, to give it a try this summer.” Low-alcohol beers were notable winners at the Brewers Guild of New Zealand 2016 Beer Awards outperforming their full-strength counterparts in two categories. DB Breweries’ Heineken Light was awarded the top award for Best International Lager while Croucher Brewing’s 2.5% low-alcohol Lowrider won the trophy for Best Specialty Beer. Expect to see more barrel aged beer on the market in 2017 and for these to become standard in many breweries’ ranges. Two notable examples are 8-Wired who currently have about 200 (225 litre) barrels full of beer and seven “foedres” (large barrels, ranging from 1500 to 4000 litres each) and Wellington brewery Garage Project who have a warehouse for the sole purpose of experimenting with sour beers in foedres, dubbed the ‘Wild Workshop’. Beer writer Martin Craig is dubbing 2017 “the year of the brewpub”. With a handful of new brewpubs opening in 2016 and at least four new brewpubs being built in Wellington’s Te Aro district alone, a brewpub is a great gateway to the market for brewers. It is almost 30 years since the Brewer’s Arms and Loaded Hogs brew started this trend in the 1990s. And lastly, more of the same as IPAs and Pale Ales continue to dominate as the most popular beer styles. Hopefully we’ll continue to see more-well balanced beers being brewed.

THE CRAFT BEER SEGMENT WILL CONTINUE TO GROW AS CONSUMERS SEEK MORE FLAVOURSOME AND INTERESTING BEER STYLES.”

[ leaders forum ]

EMBRACING BESPOKE Brendon Lawry Chief Executive Officer Liquorland RIGHT NOW in the liquor industry we’re seeing big global brands trying to get back to their roots. Big brands and premium were once all about shiny new things from overseas, but now it’s all about being local and bespoke – therefore bigger long-established brands need to convey more of their heritage and reason for being. Do-it-yourself is also growing in the drinks space – and we’re not talking making the grog yourself, it’s more about consumers (and influencers) coming up with their own exciting matches for wine and food, beer and food, and even cocktails. In the old days, cocktails were specific to a party or a night out at a bar but with spirits making a big comeback, it can be as simple as blending your favourite summer flavours (berries, cucumber, mint etc) together with gin and ice – and voilà, you have a great summer cooler. In 2017 craft beer will also continue to grow as more mainstream consumers understand that not all craft beer has a big hop-driven flavour profile. The ‘premiumisation’ trend will continue, with spirits and high-end wines growing the most in the category.

BIG BRANDS AND PREMIUM WERE ONCE ALL ABOUT SHINY NEW THINGS FROM OVERSEAS, BUT NOW IT’S ALL ABOUT BEING LOCAL AND BESPOKE.” In terms of challenges in the new year, licencing is the biggest headwind the industry faces. We have to remember that not everyone sees having a liquor licence as a privilege. This means we need to work even harder with licencing authorities and the community to continue to show we are the retailer of choice, not just because we offer a great experience, but because we take our role in the industry seriously and we will continue to do so. One of the great opportunities for this category is online retailing but it comes with a requirement for great responsibility, especially around age verification and driving safe consumption.

EXPRESSING INDIVIDUALITY Emily Blumenthal Insights Manager New World WE’RE SEEING some fundamental shifts in the way older drinkers buy and consume. Drinking for them is about relaxation and social connection; it’s an enjoyable part of many older drinkers’ regular routines, but they also balance this with a heightened sense of health and well-being. What this means is a more careful and considered choice of what they want to drink with their evening meal or as part of a celebration. Where backin-the-day they might have enjoyed a cask of dry white wine or a heavy red, they are now splashing out on craft beers, award-winning local wines or treating themselves with premium range spirits. Almost in tandem with this is what’s happening with young Millennials; ‘It’s hip to be square’. They generally don’t tend to consume the volumes of previous generations. Where only a decade ago emerging drinkers would emulate their parents and follow in their footsteps, younger drinkers are now keen to be seen as less mass, and more different and balanced. They schedule their drinking occasions and, with the odd exception, focus on how their sophisticated choices will appear positively in social media. Everything is about being ‘Instaworthy’. Brands which help them express their individuality and creativity will win out. Brands should also ensure they are being responsible, such as providing more low-alcohol options and permissible pack sizes, and also looking for ways to tell their story in an engaging way to attract and retain emerging audiences. As sales decrease by volume, brands need to increase their equity. You can only do this by adding meaning which resonates strongly and authentically with your audience. With the power of the Internet and citizen journalists, fakes are very easily uncovered.

WHERE ONLY A DECADE AGO EMERGING DRINKERS WOULD EMULATE THEIR PARENTS AND FOLLOW IN THEIR FOOTSTEPS, YOUNGER DRINKERS ARE NOW KEEN TO BE SEEN AS LESS MASS, AND MORE DIFFERENT AND BALANCED.”

FMCG BUSINESS - FEBRUARY 2017

[ leaders forum ]

LEADING INNOVATION Richard Thomas Chief Operating Officer Villa Maria Estate THERE WILL be an exciting, but at times challenging year ahead. I expect ongoing consolidation of major players in most major markets. That said, this opens opportunities for family-owned (such as Villa Maria) and niche players to build valuable and successful businesses with clearly defined offerings to consumers and customers. In my mind, the biggest challenges will exist for those who sit somewhere in the middle. Beyond the Rosé explosion, we’re seeing Albarino as an exciting new wine style that consumers are embracing. From a more holistic view, craft everything is on trend - not exactly emerging, but certainly continuing to grow. The upside of the craft movement is the positive effect it’s had on moving consumers towards premium, their willingness to spend a little more for quality is a reflection of this. This chimes well with New Zealand wine and the Villa Maria focus on quality. In New Zealand, we have been leading the way in developing lighter alcohol wines that offer consumers the taste and profile of full-strength wines, but with a lower alcohol level. We see this playing a major role in both responsible consumption and consumer desire for lighter alternatives. There is a need and hopefully drive towards deeper consumer understanding in the drinks trade. Both at an on-premises level, balancing the wish to give consumers discovery opportunities, with the consumer desire for you to keep it simple, enabling them to choose something they know, trust and like so they can get on with having a great time. And from the producer perspective, to start more often from the consumer vs what we want to make/ grow. We can’t be led by consumers in everything we do, as true innovation often comes from seeing what can be vs what people are asking for. But it’s also true that a faster horse could live alongside a Model T Ford just fine. So innovation both to open up completely new consumer experiences and to bring consumers what they are looking for.

THERE IS A NEED AND HOPEFULLY DRIVE TOWARDS DEEPER CONSUMER UNDERSTANDING IN THE DRINKS TRADE.”

FMCG BUSINESS - FEBRUARY 2017

MEETING SHOPPERS’ NEEDS Campbell McMahon Chief Executive Super Liquor THIS YEAR we will see a focus on delivering franchisee business success and satisfaction, essentially this is all about enabling franchisee store performance, profitability and success. For traditional liquor retailers such as Super Liquor in 2017, we have the opportunity to shape and drive the non-grocery liquor industry through scale, brand presence, franchisee collaboration and stakeholder partnerships. The focus will be on franchise operations - continuing to grow franchise performance and enhance the shopper experience to deliver franchisee success and satisfaction; and marketing and merchandising activities - category approach, growth drivers, shopper activation and executing on the consumer proposition. All whilst ensuring a collaborative approach in aligning business, people and organisation. Shopper experience is key. Early 2017 will see the completion of Super Liquor’s store refresh, transforming all stores nationally to create an enhanced shopper experience and to meet the shopper’s convenience needs. Convenience and store experience is key to increasing sales and profitability, as well as raising brand standards in terms of store operations and performance in shopper experience and delivery. It’s important to have the right stores, location, operators, offers and growing brand presence and market share. Ensuring category and product plans are totally aligned and relevant to consumer’s product, social and lifestyle choices for today and tomorrow is critical. Some of these include: moderation and well-being and lower alcohol alternatives in beer and wine; volume product moving to higher value; growth in craft beer and the premiumisation trend across the categories with appropriate new product development to the fore front, resulting from changing taste trends and the need for in store inspiration. Regarding brand and communications, we need to understand both the core and conquest consumer more clearly, to help develop the offering and communicate, connect and engage more effectively with these consumers. In terms of changes to the retail environment through consumer technology, there has probably been little marked impact on the industry to date but we need to plan to be at the edge of this which will see us needing to raise the game to meet the contemporary preferences of customers as retail moves increasingly digital.

[ Q&A ]

BY GEORGE, IT’S GOOD! The Shout talks craft brewing with Good George Brewing Chief Executive Race Louden.

HAVING RECENTLY added Scarlett O’Hara Peach Cider to their expanding collection, the team at Good George Brewing are definitely making their mark in the world of craft beer and cider in New Zealand. The Shout caught up with the Chief Executive of Good George Race Louden to find out how Good George stands out from the crowd. Tell us a bit about Good George Brewing… Good George Brewing is four years young – which is pretty old in New Zealand craft terms. We proudly brew damn good beers and ciders in the heart of industrial Frankton, Hamilton. The mission of the team at Good George, above all else, is to bring beer and cider drinkers experiences worthy of their time and efforts. Good George will encourage them to explore the awesome world of beer and cider, show them how best to enjoy it, and have a bloody good time in the process. What is your process in coming up with a new beer or cider ﬂavour? New brews are all about collaboration across the team – and we even involve our customers! The more ideas the better really. There is a lot of creativity within the team and they tend to know what’s up on the new brew front internationally and locally, so we take those ideas put them in a melting pot and come up with the recipes that we believe will resonate with our customers, and just as importantly, brews that we can commercialise and make some money from. If the team aren’t 100% happy with the final product, it doesn’t make it to market.

With more beer and cider companies creating new and interesting ﬂavour combinations, how do you make sure you stand out from the crowd? Firstly, we try to consistently make the besttasting beer and cider we can. Our quality controls and testing procedures are very rigorous. In regards to standing out - our flavour profiles are not ‘way out there’ and polarising, we try and make sure that our products are appealing to the average Kiwi palate. If it tastes good, then that’s a great start. Our Good George glass squealer bottle helps make us stand out big time, people can’t help but notice those bad-boys in chillers and on-shelf! In the UK cider drinking has fallen 20%, do you think that’s the same for New Zealand? Or have we gone the opposite way? Cider is a very crowded category in New Zealand with a big mix of local and international brands fighting it out for the

consumer dollar. The category is definitely still growing in New Zealand, but the trend is away from super-sugary ciders of the past couple of years, to more refined natural fruit and botanical flavour combinations. How diﬃcult is it for Kiwi boutique breweries to make it in the market? It’s getting harder for sure. There are so many breweries popping up that getting a product ranged in store is becoming a lot more difficult. Retailers are really starting to make big decisions around range consolidation and brand and SKU profitability – even getting an appointment to show a buyer a new product is becoming a lot tougher than 12 months ago. I believe if you have a great product, and you are passionate about investing in growing your brand through marketing and promotion, you have a chance to get your slice of the pie. It definitely won’t be easy – so expect some sleepless nights along the way! What’s next for Good George? 2017 will be a big year for Good George. We have had a massive summer so far and I can’t see things slowing down at all! We have new products in the pipeline, maybe some more brewery expansion, and potentially another weird and wonderful vehicle purchase for our events fleet. We currently have a caravan, a kombi and a fire truck… so maybe it’s time for a boat or a tank? Why not ehh!

FMCG BUSINESS - FEBRUARY 2017

THE ASIAN BEER BOOM The biggest brewery that Neil Miller has visited was not in America, the United Kingdom or the Czech Republic - it was in China, the nation that drinks the most beer and makes the most popular beer brand in the world.

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

IF ASKED about the best-selling beer in the world, most Kiwi drinkers would throw out traditional transglobal names such as Heineken, Budweiser or Stella Artois. But they would be wrong. The highestselling beer in the world for several years has been Snow Beer, which you have probably never heard of because it is rarely sold outside of its home country of China. To my knowledge, it has never been to New Zealand - certainly not in commercial volumes. Snow Beer has not felt the need to enter the New Zealand market because of the massive local demand in China. Based on the amount of beer consumed per capita, the leading nations are the Czech Republic, Ireland and Germany (sometimes the old stereotypes are based on fact). Those countries drink nearly twice as much beer per person as New Zealand, and Kiwis in turn quaff around three times the amount of Chinese drinkers. However, on total volume the biggest producer and consumer of beer is China, due to its massive population. I have said for years at beer tasting events that if you want to become a billionaire,

FMCG BUSINESS - FEBRUARY 2017

figure out how to sell beer to women in China. It is a 500+ million-person market which rarely drinks beer. But it is not an easy task, as a number of big international breweries have found out with great expense. The Indian beer market is also growing in significance as their middle class also expands and wants more beer. Looking at the 10 bestselling beer brands in 2016, the top two are Chinese (Snow and Tsingtao), further down the list are two from China (Yanjing at number six and Harbin at eight), and two are from Brazil. The brands that most would have expected to see dominating are relegated to the minor placings with Bud Light at number three, Budweiser at four and Coors Light at 10. Many New Zealand consumers will be familiar with Tsingtao – which I am inordinately fond of, especially when eating spicy Szechwan food – and other Asian brands, such as Asahi, Sapporo, Kirin Ichiban, Kingfisher, Kingfisher Strong, 333, Chang, Singha, Tiger and Hite. Lion has just launched Steinlager Tokyo Dry, a light lager made with a combination of New Zealand

THE HIGHEST-SELLING BEER IN THE WORLD FOR SEVERAL YEARS HAS BEEN SNOW BEER, WHICH YOU HAVE PROBABLY NEVER HEARD OF BECAUSE IT IS RARELY SOLD OUTSIDE OF ITS HOME COUNTRY OF CHINA.” NEIL MILLER

[ beer styles ] ingredients and Japanese brewing techniques, including the use of rice, which is common in many Asian beers and, it must be said, mainstream American beers such as Budweiser. I asked Innovation and Insights Director at Lion Dave Pearce about the use of rice, which is often controversial. “Rice is used in some Asian beers and occasionally in those brewed elsewhere, most notably Budweiser,” said Pearce. “It is sometimes believed that rice is used as it is cheaper than malted barley – this is far from the case. Rice is typically much more expensive than the equivalent amount of malted barley or wheat. “Using rice affects the colour, mouthfeel, and taste of the beer – rice helps create a lighter-coloured, smoother, and crisper beer,” he said. “Steinlager Tokyo Dry uses rice for this purpose, helping deliver a beer that is smooth and refreshing with a crisp, dry finish.” Lion also imports Kirin Ichiban “first press” lager which is brewed in Australia, not Japan, in order to be closer to the market. “Lagers are the dominant styles of most Asian beer cultures - although by no means the only beers brewed,” said Pearce. “Many Asian beer markets have small but growing craft beer segments. There are some interesting nuances here, with stouts and porters enjoying popularity in Japan, and wheat beers strong in markets like South Korea, Singapore, and Hong Kong.” “Typically Asian lagers have a lighter taste than European lagers, with less hop aroma and bitterness,” he continued. “Often more akin to American light lagers in terms of intensity of flavor. ‘Dryness’ is a common descriptor of Japanese beers particularly – less residual sweetness, and a smooth taste and crisp finish with less aftertaste.” Pearce matched Kirin Ichiban with the “delicate flavours of sushi – and the searing sensations of wasabi” but also with “spicy Thai and Indian dishes, and even pizza!” The other major manufacturer and importer of Asian-style beer in New Zealand is DB Breweries. Simon Smith, Brand PR and Digital Manager at DB Breweries, said they have been producing Tiger beer in New Zealand since 2008.

The brand was born way back in 1932 on the streets of Singapore. One of my first deliveries as a fledgling amateur beer writer was a gift package from Tiger, containing a six-pack, a bamboo steamer and a recipe book, both of which I still use today (the beer didn’t last long!). This is one of the reasons I still associate Asian beer so closely with food. Smith said: “Asian beers are brewed for refreshment to tackle the tropical heat and food spice.” “Tiger is the beer of street food. Just as Asian food is made for sharing, Tiger beer is the beer to share with it. It’s a full-bodied beer with bite that embraces all the different flavours of our food, just as Tiger Beer has always embraced the diverse passions of Asia’s creativity,” he said. “Also, the Asian flavour range is often varied and involves hot spicy flavours. Tiger Beer is the perfect accompaniment with its

refreshing clean sharpness which will cut the spices, it will cleanse, cool and refresh the palate, and it will prepare your taste buds for the next bite.” Tiger is a pale lager but DB has on occasion brought in variants, such as Tiger White (a cloudy wheat beer), Tiger Black (an amber lager with an Asian twist - brewed with black rice), and Tiger Green Tea (brewed with wok-roasted green tea leaves). This reflects the small but growing trend for Asian craft beer flavours. In 2009, I visited the sprawling Yanjing brewery in Beijing. Each of the 80 brew kettles there were massive and the bottling line extended literally for miles and miles. Many New Zealand craft breweries could not fill even one of those brewing tanks in a year, and Yanjing (even then) had more than 30 breweries and employed more than 38,000 people. Remember, this was just as beer was taking off in China. Despite only starting in 1980, Yanjing is now one of the biggest breweries in the world. Asian beer is more popular than most people imagine, particularly matched with food. As they toast in China - ‘gānbēi’, which can be poetically translated as ‘dry the glass’. I hope readers have had an excellent start to 2017.

ASIAN BEERS ARE BREWED FOR REFRESHMENT TO TACKLE THE TROPICAL HEAT AND FOOD SPICE.” SIMON SMITH, DB

FMCG BUSINESS - FEBRUARY 2017

DIFFERENT STROKES FOR DIFFERENT FOLKS Rob Clark, Managing Director, Nielsen NZ, explains diverging grocery growth drivers across retailers. NOT ALL New Zealand shoppers are the same, and neither is their purchasing at supermarket banner - an important distinction for suppliers when supporting retailer category strategies. Finding out where growth is being driven (or declining) from can vary considerably by retailer and understanding the differences can help improve your categoryâ&#x20AC;&#x2122;s performance. Taking the craft beer boom as an example, we see how market dynamics differ by retailer by pairing retail level data with market context. 62

FMCG BUSINESS - FEBRUARY 2017

[ category insights ]

It’s no secret that Kiwis have a penchant for a pint, with two million New Zealanders drinking beer. The craft beer category continues to post double-digit growth worth $16.7M (+22%), but what’s driving this growth? Almost half of the growth of craft beer is incremental to the beer category; significant organic growth. The other half pulls primarily from the premium and mainstream beer segments. Both Foodstuffs and Progressive have a hand in driving craft beer growth but they are achieving it in very different ways. Foodstuffs has been successful in converting existing craft beer buyers to purchase in their stores. On the other end of the spectrum, Progressive’s growth is driven through increased trips from existing buyers. If craft beer is to sustain organic growth in New Zealand, it will need to attract new households to the segment. Optimising assortment across the beer category and ranging new product innovations that complement existing craft offerings are examples of strategies that could help sustain increased sales.

With the availability of customer card data there are prospects to take these insights further, right down to being able to analyse and influence shopper beer purchasing at the item level. If viewed in isolation, the retailer trends could be misleading but paired with market level insight they can shape strategies that can help retailers sustain and capitalise on the craft beer growth trends for years to come.

IF CRAFT BEER IS TO SUSTAIN ORGANIC GROWTH IN NEW ZEALAND, IT WILL NEED TO ATTRACT NEW HOUSEHOLDS TO THE SEGMENT.” ROB CLARK, MANAGING DIRECTOR, NIELSEN NZ FMCG BUSINESS - FEBRUARY 2017

[ tasting notes ]

Pinot Noir

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.

Pinot Noir is well established in the New Zealand wine story – it has become one of our ‘signature’ varieties for overseas markets, and here at home it has attracted a wide audience – the quality is becoming more consistently high. Where and when did the Pinot Noir story begin? Evidence to suggest Pinot Noir was growing in Otago around 1865 comes from vigneron Jean Desire Féraud, a French settler to the Central Otago region. One of the wines he released onto the market (around 1870) one was called red ‘Burgundy Wine’ as noted in the ‘Otago Witness’ newspaper of that time. Another and more likely origin of Pinot Noir in New Zealand comes from the Wairarapa region. The Beetham family were early settlers to the area and dedicated farmers - mainly sheep. The family’s eldest son William had reason to travel to France where he met and married Marie Zelie Frére. When the couple returned to New Zealand and to the Wairarapa to settle - included in their luggage were vine cuttings, which they used to establish the Beetham family vineyards. There is again no hard evidence that these vines were Pinot Noir, but by 1898 other Beetham vineyards were established in the Wairarapa and Hawke’s Bay, and all were planted in Pinots Noir and Meunier. Fast forward to the 1970s and the pending expansion of the New Zealand wine industry, enterprising young winemakers had re-explored many region’s potential for wine, and began converting small plots of land into vineyard. The results were (and continue to be) remarkable for many.

FMCG BUSINESS - FEBRUARY 2017

In addition to Central Otago and the Wairarapa, Pinot Noir grows in all New Zealand wine growing areas including the newest wine area and GI (Geographical Indication) the Waitaki Valley (North Otago), Canterbury, Nelson, Marlborough, Hawke’s Bay, Gisborne, the Waikato, Auckland and Northland For quite some time it was thought that grape growing and winemaking in many of these areas could not be successful because of climate or soil conditions (or both) from the harsh, cold, alpine climate of the lower South Island to the warmth and humidity of Northland. Fortunately, those early and now modern wine pioneers recognised the value in the corresponding long sunshine hours, predictable seasonal temperatures, weather patterns and the diurnal shift through the grape ripening period (temperature swing from warm to cold each day). Remarkable wine is now made in many of the aforementioned wine areas with Pinot Noir second only to our famous Marlborough Sauvignon Blanc in international recognition. Pinot Noir has perhaps had the biggest impact on the wine sector, with the characteristic and recognisable cherry fruited, sometimes dried herb/undergrowth and intensely mineral laden examples notable. It is always a pleasure and a surprise to taste through Pinots Noir from all over New Zealand – consistency, complexity and harmony of flavours and textures can be discovered across many examples.

[ tasting notes ]

BABICH FAMILY ESTATES ‘HEADWATERS ORGANIC’ PINOT NOIR WAIRAU VALLEY, MARLBOROUGH Immediately engaging with a complex and familiar bouquet; aromas of wild herb, wild flowers then red berry fruits, plenty of earthy mineral tones and barrel tones to match. On the palate – dry, spicy, fruity and totally engaging textures – abundant fine & tense tannins add poise and grip, ripe red berry fruit flavours and a juicy sweet spot mid palate pushed along by acidity and alcohol. A lovely and engaging wine with great fruit and minerality, no mistaking the oak. Drink now and through 2026. Points 94 RRP: $35.00 Distributor: EuroVintage Phone: (09) 833 7859 Website: www.babichwines.co.nz

Q PINOT NOIR 2015 WAITAKI VALLEY Complex bouquet of soil, fruit and pinosity; aromas include black cherry, plum, spices, undergrowth and crushed rock, specific oak layer; youthful and intriguing. Dry, complex and richly textured wine with berry fruit core, plenty of youthful oak and medium+ acidity; abundant tannins needing more time to integrate – yet adding texture and length. A lovely wine with many age worthy attributes. Drink now and through 2026. Points 95 RRP: $55.00 Distributor: Q Wine Phone: (021) 349 400 Website: www.qwine.co.nz

LOVEBLOCK CENTRAL OTAGO PINOT NOIR 2014 Intense, fruity and quite concentrated with aromas of wild herb and dark cherry, sweet earth and mushroom, new oak and dark wood spices. Equally intense and fruity on the palate with flavours of spiced plum and dark cherry, raspberry overtones, vanilla and wood spice overtones, medium+ acidity, fine to moderate tannins and lengthy finish. Very youthful wine needing integration time in cellar. Decant for service. Points 92 RRP: $36.99 Distributor: Hancocks Phone: (09) 373 3574 Website: www.loveblockwine.com

MT BEAUTIFUL 2015 NORTH CANTERBURY Very fruity, ripe and varietal bouquet with dark cherry and raspberry fruits, plum and wild red florals, mineral and toasty wood tones. Very youthful and tense on the nose, but with complexity leading to high expectations on the palate. Mineral, plums, dark cherry and wild berry fruit flavours, dry and spicy with toasty wood tones; medium+ tannin impact with velvet to course silk textures; youthful, tense and lengthy. Decant for service, best drinking from 2018 through 2026. Points 91 RRP: $33.00 Distributor: Negociants NZ Phone: (027) 233 5588 Website: www.mtbeautiful.co.nz

AKARUA – RUA PINOT NOIR 2016 CENTRAL OTAGO Ripe, fresh, very fruity core with sweet raspberry and cherry, a hint of cola, rose and crushed rock, some new then seasoned oak suggestions. Juicy, fresh, crisp and dry; a lovely core of fruit, not too intense showing off vibrant red fruit, oak spice and texture – all leading to a lengthy and charming finish. Points 93 RRP: $29.00 Distributor: Hancocks Phone: (03) 442 4292 Website: www.akarua.com

AKARUA – BANNOCKBURN PINOT NOIR 2015 Spicy and very fruity core with wild raspberry and cherry laden aromas, new and seasoned oak quite intense with vanilla and brown baking spices emerging as the wine opens-up. Dry on the palate with a core of red berry fruit – spiced cherry and wild fruits, definitive rose and red tea flavour, fine tannins, medium+ acidity and long finish. A lovely wine. Points 95 RRP: $43.00 Distributor: Hancocks Phone: (03) 442 4292 Website: www.akarua.com

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

FMCG BUSINESS - FEBRUARY 2017

[ Q&A ]

THE CRAFT OF KOSHER WINE Marlborough vineyard O’Dwyers Creek has been creating Kosher wine since 2010 and is the only vineyard in the region certified by the Orthodox Union (OU). The Shout caught up with owner Lindsay Dahlberg to learn more about O’Dwyers’ Kosher vintages. situations and adds to the options that the Jewish community can consume them in. What sort of advice or guidance did you receive in order to produce Kosher wine? Our wines are certified Kosher by the Orthodox Union of America, the largest Jewish Certification body. They have provided help and guidance and send out a Rabbi yearly to supervise.

Why did you decide to start producing Kosher wine? A Jewish friend who knew we had the vineyard in Marlborough mentioned that there was not a Kosher Marlborough Sauvignon Blanc available and suggested it might be a good idea. We agreed that it looked like a good opportunity in a niche market. We also produce Chardonnay and Pinot Noir. What does ‘Kosher’ wine actually mean? Kosher wine is wine that meets Jewish requirement of firstly not being prepared by non-observant Jews. It also means we cannot use the normal animal byproducts as part of the fining process in today’s winemaking processes. Most wines these days are fined using milk, egg or fish products - we use a traditional product called Bentonite (a fine clay). Also, ingredients such as yeast must all be certified Kosher. 66

FMCG BUSINESS - FEBRUARY 2017

AS A CONSEQUENCE OF BEING KOSHER, OUR WINES ARE ALSO VEGAN AND WE HOPE TO EXPAND IN THAT MARKET.” What is the process of producing the wine? Our wines are produced in the normal way except that we employ observant Jews for all the handling at all stages. We also add a process of making our wines pasteurised [Mevushal], which means a non-Jewish person can pour a glass to an observant Jew. This makes our wine popular in catering

Is there a big demand for such wine in New Zealand? Demand in New Zealand is limited as the Jewish community here is not large. However, we have connected with Jewish importers in the USA, Australia, UK and Canada. The majority of our production is exported with the USA being the largest market, particularly into the East Coast. What are your plans nationally and internationally for the wine? We see our main markets currently as the USA, Australia, Canada and the UK and will continue to develop these. However, as a consequence of being Kosher our wines are also vegan and we hope to expand into this market and grow this market in New Zealand as well. Where is your Kosher wine sold? In New Zealand we sell online at www.odwyerscreek.co.nz and retail through Jewish community stores in Auckland and Wellington and Raeward Fresh in Harewood, Christchurch.

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