FMCG Business - February 2018 by The Intermedia Group

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I N D U S T R Y

February 2018 – Volume 5 – No 1

PL U S ! L E A D E R S F O R U M n PA CKAGI N G n SUM M ER SALAD S n NEW ZEALAND’S LARGEST FMCG AUDIENCE

N E W S

S W o AD ouR e MtaKe Y S u D B T E S a D R o L t Na W o

O U T R!

Discover our ational Series Intern e or call us in stor 6 8 0 7 476 0 on 08

SPECIAL EDITION!

contents

LEADERS FORUM 2018 SEE PG 13-20

February 2018

Up Front

Events

Editor’s note

Outstanding NZ Producers Awards

Industry news

Events Calendar

Leaders Forum

Fine Food NZ 2018

Social Sphere

Industry members spotted out and about

Inspiration and predictions for the year ahead

Category Insights 22

Salads, Toppings & Dressings

Poultry & Eggs

Specialty Breads

The Shout

Editor’s note

Industry news and insights

The Shout NZ Leaders Forum 2018

Insights from industry leaders and their predictions for the coming year

Regulars 10

Best In Season

Fresh produce in store

What’s Hot

New products in store

Profile

Striking Sauvignon Blanc

Tasting notes from Cameron Douglas MS

Meet the winemaker

Introducing some of New Zealand’s winemaking experts 16

Hutchinsons - Pioneering importer continues to thrive

APA: American Pale Ale

Beer writer Neil Miller explores the

continuing rise of hoppy beers

Good Business 34

Industry news

36 Feature

Packaging Design

Buy NZ Made

Growth for local brands

Legal advice

Anti-Spam Law

34 FMCG BUSINESS - FEBRUARY 2018

[ editorial ]

Positive vibes for 2018

appy New Year! We’re kicking off with a special Leaders Forum edition, with trend predictions, new insights and tips from a wide range of industry experts. A recent Roy Morgan New Zealand SMS Survey revealed that 53% of New Zealanders think 2018 will be ‘better’ than 2017, compared to only 26% that say 2018 will be ‘worse’. A further 21% expect 2018 will be ‘the same’ as 2017. We are also far more optimistic about 2018 than our Australian counterparts - only 31% of Australians expect 2018 to be ‘better’ than 2017. Backed by rising consumer confidence, many of the world’s economies are experiencing degrees of positive momentum. But despite optimism and future spending intentions, shopping trends remain in flux, which means manufacturers and retailers need to stay vigilant. Today’s shoppers are savvy and sophisticated. They can see through inauthentic advertising and slogans instantly. Companies and brands that use honest marketing, real customer testimonials and have a genuine connection with their audience are the ones set to thrive in the year ahead. There are lots of great ideas out there - we will continue to see amazing innovative products and new digital technology emerging. Artificial Intelligence will become more advanced and revolutionise the way we live and shop. But there are also new challenges to tackle. China’s recent ban on the import of waste highlights the need for domestic end-of-use solutions for our packaging. Find out more on pg 20 and pg 34. We also take a close look at packaging design trends on pg 36-38. See what’s driving sales in Salads, Breads, Eggs and Poultry and check out some of the latest product launches in this issue. We’d love to hear about your new products, industry experiences and your opinions. Join our daily conversations on Facebook, Twitter and Instagram, or give us a call to share your news. Enjoy this issue,

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

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

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February 2018 – Volume 5 – No 1

N E W S

ON THE COVER CP has launched a range of delicious Authentic Asia Duck products in New Zealand. Find out more on pg 26.

PL US ! LE AD E RS FORUM n PA CKA GING n SUM M ER SA LA DS n NEW ZEALAND’S LARGEST FMCG AUDIENCE

FMCG BUSINESS IS PROUDLY ASSOCIATED WITH

FMCG BUSINESS - FEBRUARY 2018

DISCLAIMER This publication is published by The Intermedia Group Ltd (the “Publisher”). Materials in this publication have been created by a variety of different entities and, to the extent permitted by law, the Publisher accepts no liability for materials created by others. All materials should be considered protected by New Zealand and international intellectual property laws. Unless you are authorised by law or the copyright owner to do so, you may not copy any of the materials. The mention of a product or service, person or company in this publication does not indicate the Publisher’s endorsement. The views expressed in this publication do not necessarily represent the opinion of the Publisher, its agents, company officers or employees. Any use of the information contained in this publication is at the sole risk of the person using that information. The user should make independent enquiries as to the accuracy of the information before relying on that information. All express or implied terms, conditions, warranties, statements, assurances and representations in relation to the Publisher, its publications and its services are expressly excluded. To the extent permitted by law, the Publisher will not be liable for any damages including special, exemplary, punitive or consequential damages (including but not limited to economic loss or loss of profit or revenue or loss of opportunity) or indirect loss or damage of any kind arising in contract, tort or otherwise, even if advised of the possibility of such loss of profits or damages. While we use our best endeavours to ensure accuracy of the materials we create, to the extent permitted by law, the Publisher excludes all liability for loss resulting from any inaccuracies or false or misleading statements that may appear in this publication. Copyright © 2018 - The Intermedia Group Ltd

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For more Summer recipe inspiration visit edmondscooking.co.nz/recipes

[ news ]

Brand new New World for Christchurch

Julia Spence, owner of New World Prestons.

Living and breathing the grocery business since she was a nipper – Julia Spence is the owner of New World Prestons, which opened on 1 February in a new subdivision in Christchurch. “I went to my first Foodstuffs conference with my parents at six weeks old,” says Julia Spence, “and I’ve really never considered anything other than being a grocer ever since.” Spence says: “I bought my first store, a Four Square in Akaroa,

aged 24. The grocery business is in my genes and I truly believe this is one of the most exciting and innovation-rich industries to be in right now.” Spence is one of a growing number of woman owners in the Foodstuffs co-operative and she’s really making a mark. “It’s so inspiring to see so many women taking up the challenge of operating these large businesses, which not only employ in excess of 100 staff. We are major contributors to our local communities in all sorts of meaningful ways, and we’re supporting fantastic suppliers who manufacture and produce top notch products.” The proud Mainlander, born and bred in Oamaru, will be joined by her partner (who also works in the store). New World Prestons store will feature some fantastic innovations including the ‘vertical wall’ in the produce department. The refrigeration shelving system displays fruit and vegetables with minimal plastic packaging. This simple change, which has been rolled out in a few other Christchurch stores, is resulting in the most positive feedback from customers that owners have ever received. The new system works by misting the produce with water to keep it fresh and is doing such a great job that stores have very little wastage each week. On offer will be extensive ranges of organic, sugar-free and glutenfree products filling a need for locals and sitting alongside the best fresh food and quality groceries.

NZ Champions Of Cheese Awards underway The New Zealand Specialist Cheesemakers Association (NZSCA) has been running the NZ Champions of Cheese Awards since 2003 and will host their 15th annual NZSCA Gala Cocktail Awards Evening in Auckland on 15 March. New Zealand Speciality Cheesemakers Association chair, Miel Meyer says cheesemakers will notice some innovations with this year’s awards. “To make it easier for cheesemakers we have moved entry online through the NZSCA website. We have introduced a new Farmhouse Cheese category, to recognise cheesemakers who produce milk and make their own cheese onsite. Finally, we have changed the format of the awards from a formal dinner to a gala cocktail event to allow cheesemakers and our award sponsors more opportunities to network and catch up.” The NZSCA Board has decided to review judging the butter

and yoghurt categories and therefore will not judge these in 2018 while they consider the future for these categories. Master Judge Russell Smith from Australia will be overseeing the Champions of Cheese Awards, with NZSCA life member Ross McCullum and American cheese specialist and Editor of Culture magazine Lassa Skinner in senior Master Judge Russell Smith. judging roles. For more information see https://nzsca.org.nz/about

FOR MORE INDUSTRY NEWS FOLLOW US ON

CHECK OUT WWW.FMCGBUSINESS.CO.NZ

FMCG BUSINESS - FEBRUARY 2018

Banana loving Kiwis can now find the little green frog symbol on Dole South American bananas in their local supermarket. The Rainforest Alliance Certifiedâ&#x201E;˘ seal means your bananas and pineapples were produced according to strict standards that protect wildlife and improve conditions for workers and their communities. Doleâ&#x20AC;&#x2122;s Rainforest Alliance Certified farms undergo audits to ensure they comply with rigorous social criteria designed to protect workers, families and nearby communities.

www.dolenz.co.nz

#choosesustainable

DoleNewZealand

[ news ]

Fresh look for PAK’nSAVE GI PAK’nSAVE Glen Innes in Auckland is getting a lot more than a fresh lick of bright yellow paint. This iconic supermarket is going through a massive makeover. With a budget of nearly $12 million, shoppers can expect a fresh and exciting new supermarket, which will continue to offer New Zealand’s lowest grocery prices. Lindsay Rowles, GM Property says, “A real focus for the team has been on improving customer friendly elements. We’ve considered everything from upgrading the carparks, extending and widening the entrance to new configurations for both manned and self-checkouts.” Other works in the store include new racking in the retail area, electronic shelf labelling, increased visibility in the service departments and, a new customer service area and staff offices. “As part of our drive to improve our sustainability across the business we’ve incorporated all new CO2 refrigeration. It’s not only more cost effective to run, it also means a lower environmental impact.”

LeaderBrand has recently commissioned its state-of-the-art Fresh–Cut Production facility in Gisborne, making it New Zealand’s most modern salad production plant. We now wish to appoint new Gisborne based team members as part of this expansion.

Fresh-Cut Quality Assurance Manager

In this senior role, you will be LeaderBrand’s expert in food safety, quality and compliance within the Fresh-Cut business. You will ensure that all Fresh-Cut best practice processes and systems are developed, validated, implemented, documented, monitored and verified. Continuous improvement will be your ongoing focus. Competencies required to be successful in this role include: • Experience working in a food manufacturing environment • Regulatory knowledge and auditing skills • Familiarity with GMP and HACCP • Woolworths Supplier Excellence Programme exposure – preferred • Team leadership skills

Industrial Electrician

This role has been newly created to enable the ongoing commissioning of plant and equipment alongside repairs and maintenance of existing equipment. You will also have a continuous improvement mentality, being able to identify areas for improvement and waste minimisation, develop these initiatives and fabricate appropriate componentry. • Current electrical registration and licence • PLC & Fitting experience – preferred • Some plant room / boiler room exposure LeaderBrand provides a safe, modern, family oriented working environment. The successful candidates will receive multiple benefits, including having reasonable relocation expenses paid for. To enquire about either of these roles in confidence, please phone Deb Francis on 021 224 5000 or apply directly with your covering letter and CV via www.agrecruit.co.nz

We specialise in agri-business

www.agrecruit.co.nz 8

FMCG BUSINESS - FEBRUARY 2018

Rowles says, “We’re very conscious that we are an anchor business in the Glen Innes town centre. We take that responsibility very seriously and have made every effort to work with and for the local community. We believe that this refurbishment is a welcome investment in the area.” The scheduled completion date is mid-February 2018. Rowles explains: “It’s been a labour of love for the property team. The re-furb has not been without its challenges and our customers have put up with a fair bit of inconvenience. We know that their patience will be rewarded with a fantastic upgraded PAK’nSAVE – and it will be well worth the wait.”

KML Retail Management Services appoint new GM KML Retail Management Services have appointed John Timms to the role of General Manager. Timms commenced in January 2018. He brings a high level of commercial skills to the role, with over 29 years of extensive FMCG experience. Timms takes over from Andrew Clyne who has successfully led the KML business for the John Timms, General last two decades. Clyne Manager KML Retail will continue to work in Management Services the FMCG Industry while retaining his financial interest in the KML Business and will remain as a Director and Board Member.

[ news ]

New food labelling laws for Australia

From July 1st 2018, new country of origin labelling laws are due to come into force in Australia. Time is quickly running out for businesses to comply with the new laws, as many are at risk of being hit with fines of more than $1 million for non-compliance. Design company Task by Kirk has been working with businesses to prepare them for the change. Task by Kirk General Manager John Kapiniaris said: “I would estimate that only half of the required changes across product brands have been completed or are in the process of being completed.”

“It’s the small-to-medium-sized businesses that are falling behind because they either don’t have the resources available or don’t have a proper understanding of the requirements under the new laws,” he said. “Any recall or disposal of non-compliant goods may run from the thousands to the millions of dollars, so it’s important to get it right. The changes aren’t really that complex and we have been able to step businesses through the necessary changes.” “The fact that we provide a design-to-print process saves clients money – up to 40% in some cases – but just as importantly in the world of fast moving consumer goods, we help get products to shelf in half the time,” Kapiniaris said. From July 2018, food made, grown or produced in Australia will feature a kangaroo in a triangle and a bar chart that shows the proportion of Australian ingredients. Companies who do not meet the compliance of the new food labelling law face penalties of up to $1.1 million, while individuals can be fined up to $220,000. For more information on the labels and the law, visit http://www.foodlabels.industry.gov.au

FMCG BUSINESS - FEBRUARY 2018

[ in season ]

Best in season

rowing conditions around the country have been ideal lately and summer fruit such as plums and apricots will continue flowing into stores this month, much to the delight of consumers. In the North Island, the Hawkes Bay summer fruit harvest is about seven days ahead of last year so retailers will notice a slight drop in post-Christmas supply of nectarines. Crop volumes of peaches are a little down compared to last season but the good news is a lighter crop has resulted in biggersized fruit. Orchardists in the South Island have enjoyed some of the highest growing temperature days for some years, which is great news for everyone in the industry. Sweetcorn will be available from now until April, while new season capsicums are now being harvested. Both of these vegetables provide excellent opportunities for colourful in-store displays, with fast stock turnover likely.

Nectarines Nectarines originated in China and were given their name after a Chinese emperor referred to them as ‘nectar of the gods’. They belong to the same species as peaches, and occasionally a peach tree can

produce a few nectarines and vice versa. Last year Kiwis ate over 4 million kilos of nectarines! Volume is similar to last year but because Hawkes Bay’s harvest is running a week or so ahead, there won’t be as many around – some early varieties such as Mayglo, are already gone! Look out for Early Star/Classic – everyone loves this yellow flesh, dark redskinned variety. Availability: Nectarines are available from November until March. Storage/handling: Can be stored for up to three weeks at 0°C and high humidity (avoid 3°C-8°C as this will ruin the taste). Display on a dry surface at 10°C-18°C. Handle very gently - never stack them more than two high as this will cause bruising and decay. Rotate stock throughout the day and remove any damaged fruit.

Plums Hundreds of plum varieties exist and this year’s crop is heavy and sizing up well in the orchards. It takes about four years for a plum tree to produce good fruit – trees must be grown from rootstock and grafting; trees will not successfully produce fruit if grown from a seed/stone. Storage/handling: Plums can be stored for 2-4 weeks at 0°C (avoid the ‘killing zone’ of 3°C-8°C). Carefully tip from packaging into

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FMCG BUSINESS - FEBRUARY 2018

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[ in season ] your display areas. Display on a dry surface away from direct sunlight or high temperatures as this will shorten their shelf life. What to look for: Large and juicy Fortune plums from Hawkes Bay will produce a heavy, good quality crop this season. Look for firm fruit with good colouring. Choose plums that yield to gentle pressure and are slightly soft at their tip. Availability: November until early April.

Capsicums Also known as sweet peppers, capsicums are seed pods that have only been available in New Zealand for the past 30-40 years. Green and red capsicums are harvested from the same plant (red are sweeter because they’re riper than the green ones), while yellow, orange, white and purple capsicums are all different varieties. Shape and size can also vary.

Storage/handling: Temperature control is very important with capsicums. If stored below 7°C chilling injury or pitting will occur. Store at 7°C-10°C with 90%-98% relative humidity. Temperatures above 10°C will encourage ripening or development of red colouring in green capsicums and speed up decay. Always handle with care as damaged capsicums decay rapidly. What to look for: Capsicums should be well shaped and have skins which are firm and shiny. Avoid those with soft spots or a shrivelled appearance. Availability: All year round, although NZ-grown capsicums are available from January until April.

United Fresh New Zealand Incorporated support the 5+ A Day Charitable Trust. Visit www.5aday.co.nz for more fresh fruit and vegetable facts, storage information, nutrition information and recipes. 5+ A Day is also on social media: @5adaynz .

TEMPERATURE CONTROL IS VERY IMPORTANT WITH CAPSICUMS.”

FOOD. IT’S OUR BUSINESS. You’re invited to New Zealand’s leading food industry trade show – Fine Food New Zealand 2018. Touch, taste and experience what’s cooking in the foodservice, hospitality and food retail sectors. Discover cutting-edge food, drink, and equipment from leading producers, learn the latest industry trends, meet new contacts and suppliers, and network with your peers. Strictly trade only.

24 – 26 June 2018 ASB SHOWGROUNDS AUCKLAND NZ www.finefoodnz.co.nz

FMCG BUSINESS - FEBRUARY 2018

New Roasted Seed Salad Toppers Roasted seed salad toppers, from Something to Crow About are convenient, ready to eat and packed full of goodness. Available in four tasty flavours in a new easy open 120g pack, including Tamari & Karengo Seaweed and Spicy Mexican. So versatile, superb over salads, roast veggies, in pesto or over muffins. Naturally gluten free, preservative free and paleo friendly. crowabout.co.nz

Speights Sauce – Pride of the BBQ Speights have teamed up with another true blue Kiwi company, Delmaine Fine Foods, to create the new Speights Sauce range. Made with Speights Fine Ales these sauces bring the iconic flavour of the deep south to the dinner table. Speights Distinction Tomato Sauce is a thick rich tomato sauce and Speights Old Dark BBQ Sauce has a unique malt flavour. Delmaine Fine Foods Ltd, Ph 0800 335 624

Home St. by Bakeworks Home St. by Bakeworks has been carefully created to change the bread market. Every ingredient has been hand-picked based on its nutritional properties to create something special, including sprouting and activating our seeds. We strongly believe the bread market is crying out for something different that is good and honest. We are extremely proud of this bread range, it is everything we believe food should be. Available nationwide through selected retailers or online at www.bakeworks.co.nz

Discover Castello’s fresh take on Fetta Premium brand Castello introduces two exciting new fetta cheeses to its range. A greek-style fetta in brine comes in convenient ready to use cubes in a unique no mess drainer basket. Also Fetta marinated in oil with Garlic & Herbs comes in a snack size pack and is ideal for platters, salads, pizzas, baked dishes and in lunch boxes. For more information please contact Hutchinsons 0800 555 258 or visit hutchinsons.co.nz

Introducing My Life Bio Cheese – for a vegan, dairy-free lifestyle My Life Bio Cheese makes the choice of wholesome and healthy food easy. A delicious dairy-free cheese alternative made with coconut oil. Great on its own and perfect to add to sandwiches, toasties, pizza or any of your favourite foods. Available in cheddar flavour as a block, slices or shred for added convenience. For more information please contact Hutchinsons 0800 555 258 or visit hutchinsons.co.nz 12

FMCG BUSINESS - FEBRUARY 2018

2018

L E A D E R S

F O R U M

Katherine Rich Chief Executive NZ Food and Grocery Council

Christian Abboud CEO & Country Manager Nestlé New Zealand

John McKay CEO AsureQuality Ltd.

Chris Quin CEO Foodstuffs North Island

Steve Anderson CEO Foodstuffs South Island

Catherine Beard Executive Director Export NZ

Scott Davidson General Manager Merchandise Countdown

Lew Bentley Head of Shopper Marketing Strategy Energi

Lyn Mayes Manager The Packaging Forum’s Public Place Recycling Scheme and Soft Plastics Recycling Scheme FMCG BUSINESS - FEBRUARY 2018

[ leaders forum ]

NZ FOOD AND GROCERY COUNCIL

Katherine Rich Chief Executive

COMPANIES WILL CONTINUE TO EMBRACE THE ROLL-OUT OF PRODUCTS THAT CARRY THE HEALTH STAR RATING LOGO.”

FMCG BUSINESS - FEBRUARY 2018

I’M PICKING 2018 to be the busiest year in the food and grocery sector for some time. That’s mainly because we’ve got a new government with new policies, new ministers, and new approaches. During the election campaign, and even before it, the parties that make up the new government were talking about their wish-list of changes – from tackling obesity, changing food labelling, and taxes on ingredients and bottled water, to environmental initiatives, flagging the movement of the minimum wage to $20 over time, and promoting trade. All of them will affect the FMCG sector one way or another, be it via changes to manufacturing processes, an impact on costs, or access to markets. Though the Government has started at pace, there’s little for the FMCG sector in its first 100 days. But that’s going to change about late February, once we get past that target, and I’m picking there’ll be plenty for us to ponder in the second and third 100 days. Some of the coalition parties talked about a tax on sugar as one of the favoured ways of tackling obesity. This is a contentious issue, which the Food and Grocery Council opposes because it’s done little, if anything, to reduce obesity anywhere in the world it’s been tried. In Mexico, which introduced a 10% tax on sugary drinks, consumption was back to pre-tax levels within a year, and all that was achieved was a lot of extra income for the government. Despite our doubts about sugar and other food taxes, we’ve made it clear we’ll work with this Government to provide information and advice on the obesity issue. Our members are committed to building on their work of recent years to reformulate and innovate products to offer more and healthier choices by lowering levels of sugar, salt, and fat, and to support education on this in schools and the community. There are now more healthier options available than there have ever been, and we want to continue that. Companies will continue to embrace the roll-out of products that carry the Health Star Rating logo, which number more than 3500 on shop shelves, 1800 of them industry labels, the remainder supermarkets’ own brands and non-FGC brands. There is likely to be further pressure on the Government to consider requiring food labels to show the amount of added sugars in products, though like the Mexico tax this sounds much better than it actually is. Our bodies metabolise all sugars in the same way, whether they are naturally present in ingredients or are added, so it would add nothing to consumer knowledge. Country of origin labelling will likely get a further airing, with Parliament studying a Green Party bill requiring such labels on single-component foods. If not impossible, then it could be very costly to require this on products that have to come from different sources, depending on the season, price, and availability. It’s relatively straightforward for some, but not for aggregated and blended products such as coffee, tea, sugar, flour, custard powder, pepper, cooking oils, oats, spices and rice. The effect on the shelf price could determine the outcome there. Aside from regulation and legislation, FGC will be busy continuing to work closely with the major retailers on a variety of fronts, including supply chain issues, health and safety, and ensuring ready and open communication channels with suppliers. We will also work with members to make sure they’re up to date with all the requirements of the new codes of advertising food to children. Companies are very careful in this area now, and we want to make sure there are no gaps. Finally, FGC intends being more active in the South Island this year. We have a good number of members there, but realise it would be good to build on that so we can hold South Island-specific events. To that end, we have appointed Jo de Joux to work on our behalf to talk to companies that may see the benefits of joining the industry’s peak body.

[ leaders forum ]

NESTLÉ NEW ZEALAND

CONSUMERS ARE INCREASINGLY KEEN TO KNOW THEIR FOOD HAS BEEN GROWN IN A WAY THAT DOESN’T NEGATIVELY IMPACT PEOPLE, COMMUNITIES, OR THE PLANET.” Christian Abboud CEO & Country Manager

AS A newcomer to New Zealand, I have spent the summer enjoying Kiwi traditions like barbecues, Pavlovas and jandals. Over the last year, I’ve also had a unique opportunity to observe what Kiwis love about food, and see where trends are heading in this country. Three particularly stand out: Nutrition: Consumers are divided between those wanting healthier choices, as evidenced by increasing demand for better-for-you foods and beverages, and those who want their favourites untouched. Nestlé has tackled this challenge through progressive reformulation that aims to retain taste, and by introducing healthier choices that sit alongside old favourites. For example, since 2006 we’ve cut the sodium in Maggi 2 Minute Noodles by as much as 55%, creating a healthier product that consumers still love. Alongside this, we offer healthier alternatives in Maggi Wholegrain Noodles and Maggi 99% Fat Free Noodles. In the cereal aisle, we’ve cut sugar in some flavoured Uncle Toby’s Quick Oats sachets, while introducing new products, such as the Uncle Toby’s Nature’s Mix range of oat sachets, created without added sugar. Responsible sourcing: Consumers are increasingly keen to know their food has been grown in a way that doesn’t negatively impact people, communities, or the planet. Whether concerned about deforestation, the rights of workers or animal welfare, this focus

both by food producers and by consumers is revolutionising food production behind the scenes. Nestlé has been at the forefront of this, with the UTZ logo on our local chocolate the outward sign of a programme that’s creating better lives for cocoa farmers and their communities. At the same time, the sustainability of all of our key ingredients, from milk to palm oil to coffee, continues to improve as we partner with experts to work towards a better future for farmers, their communities and the environment. Creating a better future for children: Concern around the health of our next generation is at a high. Reconsidering the nutrition of our products and how we label and market them is a start, but not enough. Programmes and education curricula which encourage children and teens to understand the importance of sound nutrition, physical activity and healthy hydration such as the Nestlé Healthy Active Kids programme are an important component of empowering our kids to lead healthier lives. Scrutiny on our industry, the products we make and the communities we partner with is likely to continue to increase in the coming year. Contributing to a stronger, healthier future for us all lies in being responsive and relevant to the needs of the individuals, families and communities we serve. FMCG BUSINESS - FEBRUARY 2018

[ leaders forum ]

ASUREQUALITY LTD. IT’S A time of rapid and accelerating change for the food sectors. Technology advancements are having fundamental impacts on many aspects of the value chain including food assurance and the need for consumer confidence in their food choices. For example, autonomous sensors on-farm, or on-orchard, or in-factory, or within logistics and distribution systems are starting to provide near real-time data across multiple variables for operational, compliance and assurance purposes. This has far reaching implications for farmers, growers, manufacturers and brand owners. For us, it opens new opportunities for quite different conversations on where and how we can add value – i.e. remote verification, or data assurance. In another example, more and more rapid testing methodologies are becoming available and accepted, enabling testing options at all points of the supply chain, from inputs through

to consumer sciences, as well as faster decision making in-line and on finished product. Both these areas of advancement are strongly linked to the digitisation of food assurance – the automation of big data sharing and utilisation across trusted partners. These are all areas where we at AsureQuality see considerable growth and innovation opportunities, and are excited to be actively involved in with our customers. Another area that we see emerging is consumer demand for transparency. Increasingly, brand owners are looking at how they craft consumer assurance stories by better utilising their auditing and testing work – including verified label claims, supply chain transparency, smart labelling solutions, product and ingredient traceability, and product authenticity. This is a massive opportunity for New Zealand exporters in selling their, and the NZ John McKay Inc. story offshore, and one that we CEO are passionately supporting with our assurance marks offers.

FOODSTUFFS NORTH ISLAND THE LAST couple of years have seen Foodstuffs North Island make strong strategic progress. The team has been in together to implement fundamental organisational change and set in place a number of initiatives enabling the business to operate successfully, sustainably and with our community’s well-being at heart. One of the big customer conversations is around sustainability, which is hugely important to so many New Zealanders. To deliver what our customers want, the things that are important to them have to be critical to us as well. We’re measuring our performance in this area against the United Nations’ Sustainable Development Goals, which include energy reduction, action against climate change, waste minimisation, reducing packaging and fighting food poverty. While we have made significant and meaningful inroads into many of these, with changes such as reduced energy use and plastics, the introduction of electric vehicles and dramatic reductions in waste, the topic which excites our team is our ability and willingness to help ALL New Zealanders get more out of life. Our investment in Eat My Lunch heralds a new way of dealing with a very pressing problem. By enabling this social enterprise to expand their reach more quickly we will help them reach their objective of providing 25,000 nutritious lunches to children in need. But this project does double-duty. Eat My Lunch allows Foodstuffs to answer changing customer needs. As our lives get busier and we’re looking for meal solutions which are quick, tasty and nutritious, we now offer delicious, healthy, grab-and-go meals in store with an added benefit – every meal sold provides yet another free school lunch. We can’t wait to roll this out further and see the immediate positive impact this has on our community in tandem with the multitude of

FMCG BUSINESS - FEBRUARY 2018

Chris Quin CEO

other health-based programmes we have in place, such as support for the Starship Foundation, Food for Thought, Private Label product reformulation and significant donations to foodbanks and community groups around the country. Expect to see Foodstuffs North Island meet business, social and environmental challenges head on thanks to the extraordinary efforts of more than 22,000 employees, fantastic supplier relationships, focusing on customer needs and committing to treading lightly.

[ leaders forum ]

2018 WILL SEE THE COOPERATIVE FURTHER CEMENT OUR COMMITMENT TO OPERATING WITH A LIGHT TOUCH ON THE ENVIRONMENT.”

Steve Anderson CEO

FOODSTUFFS SOUTH ISLAND WE’VE SEEN tremendous change in our business as investments in people and property really start to pay dividends. New Zealand has weathered recent global economic uncertainty relatively well and we continue to show how innovation and a commitment to leadership in caring for our environment and community has long term benefits. The new government has heralded some exciting initiatives in regional and youth development. Investing in the regions will not only relieve pressure on our larger cities, it will mean we develop and retain good people in parts of the country which, up until now, have experienced a drain. Foodstuffs is at the heart of virtually every city, town and village in New Zealand – we see and understand the role we have to play, in partnership with Government, ensuring thousands of people have rewarding jobs and a career path, and that New Zealanders have easy access to fresh, quality, affordable groceries. We are particularly excited about the focus on youth development. Our business offers a number of training opportunities and career pathways. We stand ready and willing to work with relevant bodies to encourage young people to step up and consider working in Retail. Many of those who start with us on the shop floor end up owning a successful supermarket and go on to play a huge role in their local community. One area that does concern us is the uncertain climate we have around immigration. Businesses like ours are 24/7 operations; relying on a huge number of staff prepared to work at odd hours and in areas which can be tough but rewarding. There is a genuine shortage of

skilled bakers and butchers which, if unaddressed, will impact millions of customers. Significant increases in minimum salaries in a business which is exceptionally competitive could have long term effects on sustainability. We urge the Government to consider carefully the ramifications of policy changes in this area. While growth and development are key priorities, 2018 will see the Cooperative further cement our commitment to operating with a light touch on the environment and supporting New Zealanders who are disadvantaged. It is only when every one of us benefits from the bounty our country has to offer, that we can claim that New Zealand has a fair and decent society.

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FMCG BUSINESS - FEBRUARY 2018

[ leaders forum ]

EXPORT NZ DEMAND FOR food with health benefits will continue to be a growing trend – such as gut health, antioxidants, food that lifts mood, food that tastes good, looks good and is good for you! People want convenience and new ideas about what to cook and how to cook it. So in-store bundling of a food bag style offering could gain good momentum as will on-line sales.

Specific issues and opportunities arising within the FMCG sector We live in disruptive times so there has never been a better time to be an emerging food business that can get innovative products off the ground with the help of social media. Previously it has been hard for emerging business to get consumer cut-through and compete with the big incumbents – this is changing and so is the route to market with ordering off the internet and home delivery becoming an increasingly attractive option for many families. All of this will give the supermarkets a run for their money and competition is good for consumers and good for innovation.

Scott Davidson General Manager Merchandise

New developments Amazon has come to Australasia and it will be interesting to see how this might disrupt the FMCG market in New Zealand in the years to come. Retailers will continue to gather rich information about their customers and their food preferences and tastes and it will be interesting to see how clever marketers manage to use the information to offer a much more targeted offering to their customer base.

Industry predictions for 2018 New Zealand processed food exports will continue to increase. We have a huge opportunity to export a lot more processed food than we do currently and hopefully more Free Trade Agreements to smooth the path to overseas markets. New innovative foods and beverages will continue to hit the market because consumers have an insatiable desire for “new” things to try. Niche beverages like Cider will continue to grow as will beverages that have health benefits.

Catherine Beard Executive Director 18

FMCG BUSINESS - FEBRUARY 2018

COUNTDOWN OUR FOCUS for 2018 is about making things easy for our customers. That means having the right products at low prices everyday; ensuring our team and suppliers are working together to give customers an excellent experience, whether that’s in a bricks and mortar store or online; and innovating to ensure we remain the best in the business of online grocery shopping. In this highly competitive market, innovation and adaptability are vital to stand out from the pack. Customers have instant access to almost any kind of product and service at the click of a button, and this level of access and convenience is both the biggest challenge and opportunity for retailers and suppliers. It means constantly being on your toes and aware of your competition - both here and abroad. It means always challenging yourself: is this the best we can do for our customers today? Is this the best price we can offer? Is our service and experience a differentiator? These aren’t new challenges for retail, nor are they unique to supermarkets, but in my view, 2018 isn’t the year for any of us to rest on our laurels. The explosion of information available means that as a business we need to help customers make meaningful choices about what and how they are shopping. Health and wellness continues to impact across the entire supermarket as customers seek out healthier alternatives. We’re expecting strong growth in low sugar and reduced sodium products, a focus on protein and many more plant based meals, and we’re working across the store to call out these products and make it easy for customers to see and choose them. We’re also expecting an increasing number of customers who make choices based on social and environmental issues. Countdown was the first supermarket to announce the phase-out of 350 million single-use plastic bags from stores by the end of 2018. Beyond this, retailers and suppliers alike need to continue to focus on reducing plastic and packaging right across the store; it’s a growing focus for customers, and it’s the right thing to do.

[ leaders forum ]

ENERGI IT’S A dirty secret that most FMCG categories are over-supplied. From a demand point of view, we don’t need 150 brands of beer, or wine. We don’t need 20 types of premium ice-cream, or fresh juice, or toothpaste, or analgesics. Supply side pressures of competition and the lure of profit make distributors keen to present more choices for customers. The assumption is that more equals more for retailer revenue, manufacturer sales, and shopper satisfaction. For shoppers, the reality is that choice is good - up to a point. Then too many choices results in dissatisfaction. The Paradox Of Choice is a behavioural economics concept in which people don’t like having too few alternative to choose from, but then after a certain point too many choices becomes overwhelming. What happens is that they become flooded with the opportunity cost of options forgone, and this creates dissatisfaction. You know the feeling. You have a wall of products in front of you that become confusing, start to seem the same, and it is too hard to make your choice. So you default to the familiar, pick a promotion, or you walk away in frustration. How do you manage your product portfolio in a way that optimizes the desire to present a full range, yet makes it easy and satisfying for shoppers to make their selections? Choice architecture is the art of how to best organize your offering for shoppers. It is the human-centred approach to designing a brand portfolio, or category presentation that makes large and complex ranges easier to make selections from. When you get the choice architecture right categories are more satisfying to buy from. Products stand out more, and they’re more attractive to choose. Nespresso is an interesting example of a store experience that presents a broad and potentially confusing array of products in a good way. They use a coded system, selection guides and a high-touch service to chunk their offering down to support manageable and intuitive shopper selections. In 2018 the Energi team will be using choice architecture to help our clients win at the point of purchase by making their products easier to choose. More than you need becomes just what you want.

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FMCG BUSINESS - FEBRUARY 2018

[ leaders forum ]

THE PACKAGING FORUM IN 2017 The Packaging Forum welcomed 36 new members, demonstrating that over 200 FMCG brands, manufacturers and recyclers want effective product stewardship schemes that allow for collective solutions, innovation and investment. Interest in packaging is increasing and it’s important for consumers to understand how packaging protects products, extends shelflife, and keeps prices low. We welcome plans by supermarkets to end free single-use plastic bags. However, as a lightweight material with low transport costs, all plastic packaging isn’t bad. Plastic is manufactured here and increasingly there are domestic Lyn Mayes recycling solutions. New Manager Zealand’s first PET* plastic wash The Packaging Forum’s Public Place plant allows packaging to be Recycling Scheme and Soft Plastics remanufactured into recycled Recycling Scheme PET food containers, helping the shift from non-recyclable materials such as polystyrene. We operate the soft-plastics recycling scheme accessible to over 74% of Kiwis. This national drop-off recycling system is only possible with the financial backing of FMCG brands and end markets for recycled products. Many brands have introduced targets for recycled material content in packaging, however this requires investment in infrastructure and systems. China’s recent ban on waste import heightens the imperative to have domestic end-of-use solutions for our packaging. We also expect continued interest in the development of new packaging materials, such as compostable plastics. It’s important that design innovation is matched by consumer understanding of use and national processing capabilities. In 2018 we will continue New Zealand’s drive towards a circular economy. On my wish list for 2018 is that FMCG readers: • Buy packaging made from NZ recycled materials; and • Join one of our product stewardship schemes; and • Support our Let’s Put Litter in its Place campaign, allowing investment in infrastructure and awareness. * Polyethylene terephthalate

NEW ZEALAND’S FIRST PET PLASTIC WASH PLANT ALLOWS PACKAGING TO BE REMANUFACTURED INTO RECYCLED PET FOOD CONTAINERS.”

[ profile ]

HUTCHINSONS

Pioneering importer continues to thrive

utchinsons, one of New Zealand’s original pioneering importers, has been supplying premium food products to the retail sector for more than 100 years. We spoke with Hutchinsons to find out the secret to their success. The entrepreneurial Hutchinson’s family business was established in Auckland in 1906 by George Hutchinson and his three brothers. Initially they opened their own retail stores focusing on specialty and gourmet food products. As their reputation as a successful importer grew, they established Hutchinson Wholesale in 1914. Hutchinson Wholesale distributed premium foods to its own stores, as well as to other major players in the grocery trade. It was said that if anyone in New Zealand asked Hutchinsons for a product, they would source it. Today, Hutchinsons has grown its product portfolio and remains a major player in the New Zealand FMCG industry, sourcing and promoting authentic food products, as well as partnering with premier food producers from around the world. Some of Hutchinson’s brands include Castello, Babybel, The Laughing Cow, Trident, Vegemite, Hutchinsons Cheese, Paul Newman’s and Tilda. General Manager, Ron Curteis, believes the secret to Hutchinsons long term success is its professional, reliable and responsive approach and a straight forward, ‘never give up’ attitude. “In many ways Hutchinsons have been, and still are, innovators in the industry. We’re very proud of the company’s amazing heritage and continue to retain the core principles that have served it so well. Hutchinsons have a long track record of performance. There are many reasons why we have such strong relationships with our brand owners and retailers, but in essence I believe it’s mostly because you can trust us to deliver with integrity, passion and without fuss. “We have recently undertaken a brand refresh and developed a new website for greater visibility in the market Hutchinsons.co.nz. With an up-to-date

General Manager, Ron Curteis

digital presence, we can convey our story. It’s all fresh and exciting. “We have great brands, a highly effective team, proven systems and a real passion for the business. That’s what’s taking us forward into our second 100 years”, says Curteis. With such a long and rich history it is a wonder Hutchinsons has been able to keep its story under the radar, succeeding very well without a digital presence, until now. Curteis wants to celebrate the Kiwi ingenuity and cleverness that created Hutchinsons and this website and brand refresh is just the start. Change management is one of Curteis’ strengths with a background in marketing and sales for brands such as Charlie’s, Abe’s Bagels and Gillette, to name a few. He has been charged with delivering sustainable

growth for Hutchinsons’ brands, brand owners and customers. He is highly motivated to ensure Hutchinsons is the benchmark in its sector and a fantastic place to work. Hutchinsons offer brand owners a full service solution including national field sales and merchandising, logistics and supply chain management, as well as product development. As successful brand owners themselves, Hutchinsons adopts the same exceptional business model with its brand partners. Castello has been a long-term brand partner of Hutchinsons for 20+ years. The recent success of Castello’s NPD in premium cheese was led by Hutchinsons and is achieving continual growth year on year. Trident is one of Hutchinsons’ own brands. They have led this brand to be the number one brand in sweet chilli sauce, wet cooking noodles and coconut cream and milk. A recent pack change across the sweet chilli sauce range proved to be a positive move. So, we watch with interest as Hutchinsons moves into the 21st century with its new digital platform, while keeping hold of its heritage and the core values that has been the secret to its success for more than a century. FMCG BUSINESS - FEBRUARY 2018

EXCITING INNOVATIONS

Summer brings a fresh look for salads, dressings and toppings.

he Whole Mix is a new brand, launched only this month bringing innovative new products to freshen up the New Zealand market with a winning mix of Grab & Go salads and Sides that are fresh, tasty, convenient and nutritious, for ‘on the go’ and for enjoying at home with family. Angela Thompson, National Sales Manager of Speirs Foods says: “With the growth in the fresh chilled Grab & Go market we saw an opportunity to do something new and innovative. Renowned for our quality bulk salads in the deli serve-over, we thought it was time to pick up on the global trends of convenience, environmental awareness, health and protein – the result, the launch of our new The Whole Mix brand of products.” “Our outlook is simple: we refuse to compromise when it comes to 22

FMCG BUSINESS - FEBRUARY 2018

health, quality and taste, and aim to cater to time-poor individuals and families who share our values. Our food is fresh, authentic, made with care and we’re proud to be 100% Kiwi. Our winning mix includes fresh Grab & Go salads with protein, side salads to accompany a meal, Potato ‘n Gravy a Kiwi Classic and a NZ first - fresh spiralised vege noodles! You can expect fresh, and flavoursome food across the entire range, catering to all preferences and tastes – it’s all about good, made easy. We’re really excited to bring our innovation to market, supported by a full-on communication campaign and intend to roll out more exciting products in the coming months, and there’ll be more NZ firsts amongst them!” For more information contact Angela, info@thewholemix.co.nz

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[ category insights ]

Gourmet Toppings Here’s a simple way to add excitement to salads, soups and meats. Gourmet Toppings is a new company that was launched in February 2017, offering a range of interesting sprinkles and croutons, a simple and convenient way to add taste, texture and crunch to salads, soups and meat dishes. Director Ross Kane says: “We really wanted to enable people to add some excitement to their food easily and we’re confident we’ve delivered on this. We originally launched five flavours (Crispy Onion, Salsa, Smoky, Mediterranean Sprinkles and Sundried Tomato Croutons) then added another three flavours (Herb and Garlic Croutons, Wasabi and Onion Bhaji Sprinkles) to the mix in July, 17. The product can be found in the produce departments.” Kane says: “Sales have been solid, with good lifts over the summer period, as our tasty toppings pair beautifully with summer salads and meats. Our aim is to continue to build a loyal customer following, making creating exciting food easier. “With the trend to healthy eating and the growth in salads and lean meats, its a great opportunity to introduce products that make eating these more interesting. We’re set on keeping a strong new product development programme going and are looking forward to adding another three innovative products to our established range this year.”

Heavensent Gourmet Heavensent Gourmet specialises in handcrafted, unique dressings and vinaigrettes made with minimal processing to retain the goodness and flavour from natural, high quality ingredients. Priced at the premium end of the category, Heavensent products are typically stocked in the service deli alongside other exotic condiments and fine foods. Very popular in the independent

channel, Heavensent has also carved out a small, loyal following in some Foodstuffs outlets nationally. Co-owner Denise Bree explains: “Heavensent dressings and vinaigrettes appeal to shoppers who value quality and authenticity over economy. We like to think of Heavensent as the equivalent of better quality wines. You could buy an $8 Aussie blend or you could buy a refined Otago Pinot for around $30. It depends on the occasion and who you plan to share it with. Our customers love the presentation and unique flavour of our products and really appreciate the effort that we’ve gone to so that they can enjoy the benefits of ingredients like fresh fruit and vegetables, extra virgin olive oil, cider vinegar, New Zealand honey and herbs, flowers and seasonings. Heavensent also provides a small range of lower sugar and calorie vinaigrettes and sauces under the More-or-Less range which rejects most of the additives and flavour enhancers that many manufacturers too commonly use these days. For a taste of the divine, try Heavensent.” For more information, contact Denise at Heavensent Gourmet Ltd. www.heavensentgourmet.co.nz

WE REALLY WANTED TO ENABLE PEOPLE TO ADD SOME EXCITEMENT TO THEIR FOOD EASILY.” ROSS KANE, DIRECTOR GOURMET TOPPINGS

NIELSEN DATA Total Supermarkets - MAT to 14/01/2018 Val Sales

Val % Chg YA

Olive Oil (Excl. Spray)

46,005,079

8.6%

Avocado Oil

1,429,681

12.5%

NIELSEN DATA Total Supermarkets - MAT to 31/12/2017 Val Sales

Val % Chg YA

Total Salad Dressings and Vinegar

85,281,934

4.6%

Mayonnaise

49,310,237

5.0%

Vinegar

15,981,933

14.0%

Pourable Dressings

13,206,353

-4.0%

Other Salad Dressings

5,462,646

-2.9%

Dry Salad Dressing Mixes

1,320,765

12.2%

Total Prepacked Salads

122,248,857

9.4%

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. FMCG BUSINESS - FEBRUARY 2018

CONVENIENT & TASTY

Discover new launches and trends in poultry and egg products.

P has launched a range of Authentic Asia Duck products in New Zealand and we talked to Andrew Turner, Head of Retail – CP Foods, to find out more. “CP has long been a leader in the farming and supply of duck products worldwide, with New Zealand being one of the few key markets that we had not had the opportunity to supply. New Zealand has some of the world’s strictest bio-security regulations and conditions, and CP, along with the Thai Government has worked hard to have cooked duck products approved for import. This approval was granted halfway through 2017, so now we can share these products with the New Zealand public for the first time!” Turner explains: “Our research revealed a distinct gap in the New Zealand market for a convenient, tasty and reliable duck product that is available all year round. Despite a growing interest in duck, local supply was not able to meet demand. We also realised that Kiwi consumers are often unsure on how to cook and prepare duck at home. We have developed our fully roasted duck products to make preparing duck as easy and appealing as possible. Home cooks are now able to experience the same recipes and dishes that they have previously only been able to enjoy in restaurants. Due to the growth in popularity of cooking shows like MasterChef and My Kitchen Rules, consumers are becoming much more adventurous in the kitchen. This enthusiasm and excitement provides the perfect opportunity for us to launch our duck range into New Zealand.

“We launched 3 SKUs through Foodstuffs in late 2017, under the CP Authentic Asia brand. These include the Aromatic Crispy Duck Pancake Kit (great for entertaining), Peking Style Slow Cooked Duck Legs and Peking Style Roasted Half Duck (boneless). These are just the start. We will look to launch more products in the ready meal, snacking and entertaining categories across 2018 and beyond,” reveals Turner. He adds: “We have developed a strong social media platform to showcase our products. We will use our online channels to inspire customers to become more creative in the kitchen with duck. There will be recipes and meal ideas available on our website and through our Facebook page highlighting how simple it is to cook with duck, and how you can easily substitute your current protein source to duck to add life to any meal. There will also be a strong media presence for the launch across multiple media platforms to showcase the product for Valentine’s Day, Easter and Chinese New Year. “CP are very excited to be bringing these products to consumers in New Zealand. The new products will make preparing delicious duck dishes possible for even the most inexperienced cook. Soon, everyone will be able to experience the ease and fun of cooking with duck!”

Turk’s - a new look to deliver a richer eating experience Turk’s have revamped their established brand to maximise in-store impact and tell their story more effectively. Ron Turk, General Manager of Turk’s Poultry Limited says: “With the growth in free-range chicken and the global trends of convenience, protein and clean labelling we’re going all out to develop new products that are not only freerange but that are conveniently packaged, free 26

FMCG BUSINESS - FEBRUARY 2018

[ category insights ] of artificial ingredients and utilise on-trend flavours. People love our tender, juicy cornfed and free-range chicken with it’s rich, buttery flavour and now they can get it in easier to use packs that stand out in-store.” Turk says: “We’ve just launched our new Butterflied chickens using natural ingredients and on-trend flavours such as Filipino Pinoy Barbeque and Sriracha Chilli & Lime, sales have gone crazy and just keep on going up. “It’s also about making people’s lives easier and recognising that not all households are the same, with this in mind we’ve introduced resealable packaging for our Smoked Chicken Breast and 1kg Nibbles and Drumsticks, you just use what you want and seal them up for another day – easy and no mess. “We’re only just getting started, with many new products to launch in the coming months in packaging and formats that are revolutionary for New Zealand. Our family has been raising corn-fed chickens in the Horowhenua since 1966 and we’re striving to combine that experience with innovation to bring tastier, easier to use, fresh free-range chicken to NZ families.”

New Zealand’s egg market New Zealand has 161 egg farms, most of which are run by owner operators or are family businesses, says Julie Williams, Marketing Manager at Zeagold Foods. These farmers produce over 1 billion eggs per annum from their 3.6 million hens¹. Egg consumption increased to 235 eggs per capita from 221 eggs, five years ago. In the last 12 months supermarkets sold over 51 million dozen eggs worth $236 million. Eggs are the 16th largest category in supermarkets. Egg demand is growing due to their affordability and protein benefits. Volume growth (dozens) in the last 12 months was +4.8% while value growth was even stronger at +5.9%.

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[ category insights ]

IN THE LAST 12 MONTHS SUPERMARKETS SOLD OVER 51 MILLION DOZEN EGGS WORTH $236 MILLION.”

Driving this growth is the specialty segment (Barn, Free Range and Organic eggs) which is 71% of total value growth, up +10% in value on last year - a result of the worldwide shift in market demand towards Cage Free eggs. Free Range consumers continue to pay a premium and the segment contributes 60% of this Cage Free value increase. Value growth is up +8.4% in the last 12 months. “Free Range is 20.4% of total eggs sold in supermarkets and expected to rise considerably year on year as retailers make the Cage Free changeover. Recently we have seen consumers challenge the authenticity of Free Range eggs and some seem overwhelmed with the plethora of choices on shelf,” says Williams. “Despite this growth, Intensive (the lowest cost eggs - Cage and Colony) supermarket sales make up 71.6% of total volume sales. This is due to cost still being a key driver for the majority of NZ egg consumers who love eggs,” says Williams. The Cages for layer hens are well on their way to being phased out for the new improved Colony housing and will be completely removed by the end of 2022. Sources: IRI MarketEdge Grocery, value & volume, MAT 24/12/17 ¹Egg Producers Federation.

Zeagold Foods Zeagold is a unique, vertically integrated company, controlling the complete process from the production of feed and the rearing of day old chicks right through to the manufacture of the finished egg product. Julie Williams, Marketing Manager explains: “Zeagold continues to lead the egg market in NZ with a portfolio of internationally recognised, quality egg brands including Farmer Brown and Woodland Free Range eggs. Testament to the strength of these brands is their strong financial performance for retailers in their relevant segments. “In the last 12 months the Farmer Brown brand continues to soar, achieving volume growth of +10.6% and +8.3% value growth. It is driving total category performance, contributing 41.9% to total eggs value growth and 77.8% to volume growth. Farmer Brown Cage size 7 dozen pack continues to be the number one selling SKU overall and grew by +6.8% in volume in the last year.

“Due to last year’s success of Farmer Brown’s national consumer ‘Dinner Cracked’ promotion, in conjunction with Eggs Inc., consumers will have the opportunity once again to win free eggs for a year as part of six fantastic prize packs from 1st March until 30th April. Look out for Farmer Brown packs, Facebook and website for more information.” Williams adds: “The Woodland brand continues to be NZ’s number one choice of Free Range eggs (by volume and value), up +13.2% in value and +9.0% in volume on last year. Woodland Free Range 10 packs remain the number one and two selling SKUs in the Free Range segment. “Woodland has taken the lead in implementing egg stamping for traceability in NZ. This means that every Woodland egg can now be traced back to the exact Free Range farm it was laid on. There is no better provenance story than this. Consumers can simply enter the code stamped on their Woodland egg into woodlandeggs.co.nz to trace the origin. The tree represents the Woodland brand and underneath this is the RMP code (the code assigned by MPI to each individual farm). All of the ink is food grade and certified,” says Williams. A national marketing campaign last year supported the launch of Woodland’s egg stamping, with digital, social media, PR, website, mailer advertising, and in store activity. Along with its recent brand refresh, Woodland now also has a Facebook page. Woodland also supports the High Performance Sport NZ (HPSNZ) Food Family. Woodland delivers Free Range eggs monthly to athletes across the country at HPSNZ’s national and Regional Training and Performance Centres, to support athlete preparation and recovery from training. Williams adds: “Sales of Zeagold 1 Kg liquid egg white based on the last 12 months have grown to an annualised $1.19 million retail value. This 100% pasteurised, innovative, high protein, ready to use pouched product continues to be sought after by Body builders and consumers interested in low GI, high protein diets. To find out more visit zeagold.co.nz, farmerbrown. co.nz, woodlandeggs.co.nz and zeagoldeggwhite.co.nz

Independent Eggs Co-operative Ltd Independent Egg Producers Co-operative Ltd (IEP) is a national egg supplier comprising family owned and operated farms specialising in the production of quality, fresh eggs in regions across NZ under national brands Morning Harvest and New Day. “Our local farms operate under a registered Risk Management Programme to ensure all food and safety requirements are met and all products

FMCG BUSINESS - FEBRUARY 2018

[ category insights ]

comply with current legislation,” explains General Manager Susan Bamfield. She adds: “IEP is the second largest selling egg producer nationally, with 27% volume share in the cage and colony laid segment, and 8% volume share of free-range eggs (Source: IRI MAT 10/12/17, manufacturer volume sales).” New Day free-range eggs come from family farms and each farm is independently

audited by AsureQuality. Recent research indicates this is significant to consumers seeking reassurance of their free-range purchase decisions. In line with market demand, IEP is increasing free-range production on an ongoing basis, providing continuity and security of supply and a comprehensive product range to customers.

NIELSEN DATA Total Supermarkets - MAT to 31/12/2017 Val Sales

Val % Chg YA

Total Eggs

232,523,038

6.2%

Standard

133,760,167

4.1%

Free Range

88,528,059

9.1%

Barn

10,234,811

11.5% -11.1%

Frozen Whole Chicken

21,508,517

Frozen Whole Turkey

3,223,318

-3.8%

Frozen Duck

248,235

2.9%

Bamfield says: “Morning Harvest is the nation’s second largest selling egg brand. With a history dating back to 1920, Morning Harvest eggs continue to come from our family farms all around NZ ensuring they are fresh and top quality. “In terms of future trends, 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. Recently the Ministry of Health updated their Eating and Activity Guidelines stating ‘that eggs can be enjoyed by most people every day of the week’; the NZ Heart Foundation now recommend those at risk of heart disease can eat 6 to 7 eggs a week – all which is good news for egg lovers.” For further information please contact: info@independenteggs.co.nz

[ category insights ]

SPECIALTY BREADS See what’s new and what’s driving sales in this popular category.

arrah’s, New Zealand’s number one wrap*, proudly offers 11 different wrap flavours, says National Sales Manager Casey Mason. “NZ’s favourite Garden Spinach is followed by a strong performing range consisting of Premium White, Garlic Butter, Wholemeal, Fire Roasted Pepper, Multigrain, Chia & Quinoa, Sprouted Grain and a kid’s White Snack Wrap, which is perfect for little hands.”

Farrah’s recently added Caramelised Onion and Hummus to extend the flavour variety in their range. “Farrah’s have been a significant driver to the growth of the Wraps category over the last two years as consumers look for a lighter option to other Bakery products,” says Mason. “At Farrah’s we continuously look at category trends and challenge ourselves to further innovate and add excitement to our range.

everything bagel with

garlic & onion flakes, poppy seeds, sesame seeds & himalayan rock salt &

FMCG BUSINESS - FEBRUARY 2018

ABE’S BAGEL BAKERY

PREMIUM WRAPS • NZ made • Yeast & dairy free*

• Vegan and vegetarian* • 11 delicious flavours

Classic Steak Wrap with Caramelised Onion You’ll need • • • • • • • • •

Entertainment Platter You’ll need

How to make

• a selection of your favourite Farrah’s wrap flavours • dried meats, hams, salami’s • olives, capers • a selection of cheeses • beetroot dip, hummus, cream cheese or pâté • smoked salmon slices • pesto dip

1. This is a chance to get creative with Farrah’s wraps and enjoy them with all of your favourite snacks.

2 Farrah’s Wraps of your choice 600g sirloin or rump steak 2 cloves crushed garlic 1/2 cup chopped parsley 2 tsp finely chopped thyme or rosemary 1 tsp dijon mustard handful of grated cheese 1 diced tomato handful of fresh spinach leaves

Caramelised onion • 25g butter • 2 onions sliced into rings • 2 tsp balsamic vinegar • 1 tbsp brown sugar

How to make

2. Choose your favourite wrap flavours and cut them into cracker or chip sized pieces before baking at 180ºC until crispy and golden.

Caramelised onion 1. Melt butter in a medium pan, add onion rings, vinegar and brown sugar until browned and caramelised.

3. Choose your favourite cheeses, dips, pâté’s, meats and pickled vegetables and lay out on a platter.

Steak wrap 1. Fry garlic and add steak to a hot pan until browned on each side. Slice into thin slices.

4. Experiment with flavours, have fun and enjoy with friends and family!

2. Spread dijon mustard over wrap. Add spinach leaves and onion. Add steak, cheese and tomato, then roll. Enjoy!

Pepperoni Pizza You’ll need

How to make

• 2 Farrah’s Wraps — you choose the flavour • 10-15 slices of salami or pepperoni • ¾ cup grated mozzarella cheese • cherry tomatoes (halved) • pesto • tomato paste • red onion (thinly sliced into rings) • basil leaves • salt and pepper

1. Preheat oven to 180°C.

*Garlic Butter is not dairy free or vegan.

2. Place one wrap on a baking tray, spread with pesto and then sprinkle with 1/3 of the grated cheese. Place the other wrap on top of the cheese, then spread tomato paste on top of the wrap. 3. Sprinkle with the remaining cheese, top with the salami and the halved cherry tomatoes. 4. Bake in the oven for 10–12 minutes, until the edges are crisp and the cheese has melted. Remove from the oven and top with slices of red onion and fresh basil leaves. 5. Season with salt and pepper.

farrahs.co.nz

[ category insights ]

FARRAH’S WRAPS WON’T CRACK OR SPLIT WHEN ROLLED AND ARE MADE RIGHT HERE IN NEW ZEALAND.” CASEY MASON, NATIONAL SALES MANAGER

For us it’s all about allowing consumers to explore the many recipes that are possible by using our portfolio of quality products,” says Mason. Farrah’s also launched a family friendly range into the Mexican category in September 2016 that include flame baked tortillas, spice mixes and have recently introduced three Mexican Meal Kits; Enchilada, Burrito and Taco. Farrah’s wraps are yeast and Dairy Free**, won’t crack or split when rolled and are made right here in New Zealand.

realise bagels are great for breakfast every morning, but also for after school snacks, lunch and even dinner. “ABE’S Bagels are a key brand and growth driver in the Bakery Small goods segment, the segment has grown 4.5% in value MAT*ahead of both Bread 1.8% MAT* and Bakery Total 4.0% MAT*,” says Kyle.

*IRI T. Supermarkets MAT 05/11/17

A family-owned company of Mediterranean origins, Lahmajou’s rise from honest, humble beginnings to become New Zealand’s largest specialised flat bread manufacturer and a major supplier to the New Zealand grocery industry is a tale of Kiwi ingenuity and authenticity. Giannis Michaelides set sail from Cyprus in 1966. He arrived in Christchurch with only the clothes he stood in, a wonderful smile and a healthy appetite for leavened bread his mother had taught him to make.

**Excludes Garlic Butter (Dairy)

ABE’s Bagels ABE’s Bagels’ brands in New Zealand supermarkets include ABE’S Bagel Bakery. Melanie Kyle of ABE’s Bagels shared some of the company’s news for 2018: “ABE’S are launching an Everything Bagel. This is a bagel topped with garlic, onion, sesame and poppy seeds and Himalayan rock salt.” She says: “Consumers tend to buy bagels more often at weekends and for special occasions like Mother’s Day, Father’s Day, Easter and Long weekends. In the last year we are starting to see the frequency of purchase increasing, as shoppers

*IRI Market Overview 17.12.2017

A story with full flavour

NIELSEN DATA Total Supermarkets - MAT to 31/12/2017 Val Sales

Val % Chg YA

Total Bread

483,414,890

2.7%

Loaf Bread

336,393,163

1.5%

Wraps

26,635,076

10.2%

Pita

11,866,822

-4.1%

Bagels

9,384,616

2.4%

Gluten Free Bread

29,941,202

3.7%

For product enquiries contact Simon Rangihaeata on +64 21 854 091 or simon@giannis.co.nz 32

FMCG BUSINESS - FEBRUARY 2018

giannis.co.nz

[ category insights ] But Giannis brought with him more than just his love of pita, he introduced to our pantries other wholesome, ethnic flatbreads from exotic lands and earlier times. This kind of honest-to-goodness philosophy, Kiwi No. 8 wire mentality, and refusal to compromise the integrity of the products is fundamental to the way the family business continues to run in 2018. The Giannis brand was established in 1991 and continues to go from strength to strength 27 years later with an extensive range of Pita Bread, Wraps, Pizza Bases, Tortilla and Naan bread products that are available in the New Zealand market. Sales and Marketing Manager Simon Rangihaeata says: “We encourage the enjoyment of honest food made well, so we manufacture to the highest standards and deliver quality nutritional products, nationwide and guaranteed!” For more background on the Lahmajou story go to www.giannis.co.nz For sales enquires contact Lahmajou Sales and Marketing Manager Simon Rangihaeata: ph 021 854 091, or email simon@giannis.co.nz.

Dovedale Dovedale is a Nelson-based manufacturer of a range of gluten-free and paleo breads, biscuits and crackers. Director Roland Dallas explains: “We distribute nationwide to New World, Pak’n Save, Four Square

and Fresh Choice stores and also organic health shops. Instore merchandising support is provided by Bluerock and Eye Level Marketing. “Dovedale has enjoyed spectacular growth since the launch of its first paleo bread – Dovedale Paleo Turmeric Bread – in 2016. Dovedale Purple Paleo Bread followed in 2017; a novel bread made with ‘the jewels of the Top of the South’ - Blackcurrant seeds from Nelson, Sauvignon Blanc seeds from Marlborough and Horopito from Golden Bay. “Dovedale Paleo Horopito turmeric Crackers and Dovedale Seaweed Crackers are also proving popular in the snack category. “Dovedale’s sweet offerings include Dovedale Panforte – a dense cake of roasted almonds, walnuts, dark chocolate, figs, spice and honey. Panforte has a one-year shelf life achieved without preservatives, utilising vacuum pack gas flush technology,” says Dallas. All Dovedale biscuits are gluten free and egg free and use Nelson Bush Honey instead of sugar. Dovedale continues to innovate with the launch of Frozen Paleo Dough – a unique concept using ovenable film and Dovedale’s paleo recipe to create freshly baked Paleo Bread in store, or at home.

PALEO PRODUCTS

FOR MORE INFORMATION: Phone: 03 539 1167 Email: dovedalefoods@ts.co.nz Web: www.dovedale.nz FMCG BUSINESS - FEBRUARY 2018

[ good business ]

Tackling plastic pollution

The Prime Minister of the UK, Theresa May, has declared war on plastic waste as she unveiled a 25-year environmental plan on January 11, 2018. According to international association the Waste and Resources Action Plan (WRAP), the UK recycles just 19% of all plastic consumed. So, it’s no surprise that May’s long-term plan to encourage plastic free supermarket aisles and to introduce charges for single-use plastic containers such as takeaway boxes have been widely welcomed. Aluminium food packaging manufacturer, Advanta, is calling for food manufacturers to support this movement at source, exploring other alternatives to plastic, such as aluminium, glass and paper.

The challenge is not confined to the UK, with plastic pollution rapidly increasing in other countries as well. On January 01, 2018, China implemented a complete stop to the import of plastic scrap, leaving many countries, including the UK, in a bind. The news has caused widespread concern about how the world’s growing piles of plastic waste will be disposed of. Many recycling facilities do not have the capacity to handle the high volumes being produced. Miguel Campos, Export Sales Manager for Advanta says: “When you also consider that plastic is a finite resource that has incredibly limited use, manufacturers have to take ownership of sourcing alternative materials for packaging that will reduce pressure on our waste management and recycling facilities — not to mention the negative impact on the environment. “China is not the first country to implement tough new initiatives regarding use or disposal of plastics. In September 2017, Sri Lanka announced a ban on single use plastic and Kenya implemented what is said to be the world’s toughest plastic bag ban. “The Environment Management Agency in Zimbabwe has also ordered the food industry to stop using containers made from expanded polystyrene (EPS) immediately. These initiatives have also arisen from a growing difficulty in disposing of waste plastic. “It’s not enough to pressure consumers to be mindful of what they throw away. Manufacturers and businesses need to provide shoppers with alternatives to plastic and reduce how much of the material is used altogether,” says Campos.

Kraft Heinz to phase out caged egg use Kraft Heinz, the world’s fifth-largest food and beverage company, will eliminate caged eggs from its supply chain world-wide. This new global policy will be adopted in the 25 countries in which Kraft Heinz operates. The commitment will result in a complete phase out of cage eggs in the company’s Australian operations by 2025. Animals Australia applauded the commitment that will ensure products like Kraft Heinz’s mayonnaises and aiolis will be made with eggs exclusively from hens who are not confined to cages. The announcement follows similar recent decisions by the world’s largest food manufacturer, Nestlé, and the biggest global hotel chain, Wyndham Hotel Group. Cage-free policies have already been announced by other companies, such as Subway, McDonald’s, Hungry Jacks, Woolworths, Aldi, and McCain. Recent polling by McCrindle Research revealed that 84% of Australians believe that battery cages for egg laying hens should be phased out. 34

FMCG BUSINESS - FEBRUARY 2018

Outstanding NZ Food Producer Awards After the successful inaugural awards last year, Kiwi producers are encouraged to enter the 2018 Outstanding New Zealand Food Producer Awards. You can enter online at https:// outstandingfoodproducer.nz entries close on 1 March 2018. The Outstanding New Zealand Food Producer Awards recognises this Outstanding producer 2017: John Hollows of Keewai. country’s best food and drinks producers. Whether people are growing apples, tomatoes, kiwifruit, potatoes or fresh herbs; making relish or preserves; raising sheep or cattle; making sausages or practicing charcuterie, making cheese or dairy products; fishing or farming seafood or producing smoked seafood or pâté – these awards recognise their hard work and outstanding products. Created by Kathie Bartley and Nicola McConnell of Marvellous Marketing, the first Outstanding New Zealand Food Producer Awards in 2017 attracted more than 150 entries and recognised more than 80 producers with nearly 60 products endorsed as finalists or category winners. The supreme champion of the inaugural Outstanding NZ Food Producer Awards was Absolute NZ Meat from the East Cape. Category winners included; Whitestone Cheese Co, Fix & Fogg, Jersey Girl Organic, Farm Eighty4, The Prodigal Daughter, Cloudy Bay Clams and Keewai Fresh Water Crayfish. Bartley says they are delighted to have extended the awards for 2018 with more categories, recognising New Zealand producers’ innovation in sustainability, design and artisan non-alcoholic drinks. The 2018 awards will be judged in the following categories:

gsd 4U MERCHANDISING SOLUTIONS

Outstanding New Zealand Food Producer 2018 NZ Life & Leisure Spirit of Innovation Award Fresh.co.nz Outstanding NZ Dairy Producer Outstanding NZ Water Producer (Ocean, Lake or River) Ara Wines Outstanding NZ Paddock Producer Farro Fresh Outstanding NZ Earth Producer FMCG Business Outstanding New Product T & G Global Outstanding Sustainability Award Label & Litho Outstanding Design Outstanding Drinks Award As well as having their product assessed by the country’s leading food judges, entrants receive feedback on their product and complimentary entry to food marketing workshops to be held in Auckland, Hamilton, Wellington and Christchurch in 2018. Judging will involve a large panel of leading food experts. Products must arrive in Auckland for judging on Monday 19 and Tuesday 20 March, with a full day of judging on Wednesday 21 March. Entrants will receive feedback from Monday 2 April with Gold and Silver medal winners announced on Monday 9 April. Special Award Winners, Category Champions and a Supreme Champion will be announced on Wednesday 2 May at a Gala Cocktail Awards evening in Auckland. Kiwi foodies will be invited to join the search for New Zealand’s finest by voting online for Coast Outstanding Product, Coast Outstanding Producer and Outstanding Farmers’ Market. Outstanding NZ Food Producer Awards partners include FMCG Business, NZ Life & Leisure, Fresh.co.nz, Ara Wines, Farro Fresh, Coast, Label & Litho and T & G Global.

M: 027 473 4811 E: gsd4uoffice@xtra.co.nz

www.gsd4u.co.nz

Get in touch with us

[ packaging design ]

SUCCESS, FAILURE AND DESIGN THAT MAKES THE DIFFERENCE

mart marketers appreciate the importance of packaging design in their marketing mix, says Jenny McMillan, Business Development Director at Brother Design. “It is, after all, the element that delivers your product into consumers’ hands. While broadcast communications, or even supposedly targeted digital advertising, are steps removed from your product, its packaging is like a person’s clothing. As the last thing consumers see before they make a purchase decision, and sometimes the only 36

FMCG BUSINESS - FEBRUARY 2018

communication platform they see at all, its role is crucial.” McMillan says: “At Brother Design, our reason for being is to make brands successful through design. Brands like Farrah’s, Tasti Foods and other businesses big and small have trusted us to give their products the edge they need, succeeding in the face of fierce competition and stringent listing practices. We’ve learned a great deal about what makes the difference between success and failure on shelf, and we’ve counselled many would-be clients on their ideas even before the design process begins.

“Successful design brings immediate rewards: sales can literally shoot up overnight because of it. An example is Farrah’s wraps, an excellent product whose potential was unleashed by clever design. The key is to build a thorough understanding of the market that a product enters, including the environment where it’s purchased. It’s something we manage using an efficient, proprietary process and it makes all the difference in the world. “There’s a lot to consider in making a success of any FMCG product. But investing in quality design is a must,” says McMillan.

[ packaging design ] Global trends

SUCCESSFUL DESIGN BRINGS IMMEDIATE REWARDS: SALES CAN LITERALLY SHOOT UP OVERNIGHT BECAUSE OF IT.” JENNY MCMILLAN, BUSINESS DEVELOPMENT DIRECTOR BROTHER DESIGN

Meanwhile, market intelligence agency Mintel reveals new trends set to impact the global packaging industry over the coming year. In 2018: • Packaging will play a pivotal role in reducing global food and product waste. • Online brands will reinvigorate their packaging in order to enhance the e-commerce experience. • Brands who adopt clear and succinct package messaging will be rewarded as consumers prefer brands that embrace minimalism. • Brands will be called to keep marine conservation at the forefront of packaging development and to anchor the circular economy for future generations. • Contemporary packaging formats will see the centre-of-store take centre stage.

NZ packaging wins gold at Asia-Pacific Awards Nelson Tasman milk company Aunt Jean’s Dairy has won gold for its packaging at the Transform Awards Asia-Pacific in Hong Kong. The packaging, featuring a cow illustration on its one-litre glass bottles, represented New Zealand on the world stage and won gold in the ‘best use of packaging’ category. Winning gold was a huge achievement considering the small start-up Aunt Jean’s Dairy brand was competing with work from global agency Creative Capital who design for some of the world’s biggest brands such as Versace, Lancome, P&G, and Dom Perignon. The awards are open to 18 countries in the Asia-Pacific region including Australia, China, Japan and South Korea. Aunt Jean’s Dairy founder Julian Raine is thrilled that the brand has been recognised in this way. He says: “Customers are responding really well to the packaging and the feedback we’ve had is that it resonates with them and evokes their sense of nostalgia for milk in glass bottles, which is exactly what we were hoping for.” The Aunt Jean’s Dairy brand and packaging was developed with the support of O-I New Zealand. O-I New Zealand supply Aunt Jean’s Dairy with its glass bottles and is New Zealand’s only glass bottle and jar manufacturer.

FMCG BUSINESS - FEBRUARY 2018

Looking ahead, David Luttenberger, Global Packaging Director at Mintel says: “The throwaway culture of today will evolve into one that understands and embraces the role of packaging as a primary means to reduce global food and product waste. Consumers have long considered packaging as often unnecessary, and ultimately as just waste to be disposed of. But that misconception is now changing. A focus on package innovations that extend food freshness, preserve ingredient fortification, and ensure safe delivery is increasingly benefiting consumers. Brands will need to act fast by exploiting on-pack communication tools to educate consumers to the benefits packaging can bring, from extending shelf life of food to providing efficient and safe access to essential products in developed and underserved regions of the world.”

E-package As more and more consumers embrace online shopping, packaging will play a pivotal role in brands’ and consumers’ e-commerce experiences. Online shopping is becoming increasingly widespread around the globe and is near ubiquitous in some markets. However, while online shopping’s key advantage is convenience, consumers expect more from their favoured brands. When designing packaging to be viewed online, and transit packaging to be opened upon delivery in the home, the experience of e-commerce packaging must reflect consumer expectations from shopping with that brand in-store.

Sea change Plastic packaging adrift in the world’s oceans will become the catalyst driving brands to rethink packaging in a context consumers can understand and act upon. Concerns over safe packaging disposal will increasingly colour consumers’ perceptions of different packaging types, and impact shopper purchase decisions. Only by communicating that a brand is working towards a solution will this growing barrier to purchase be overcome. “While collecting waste plastic from the sea to recycle into new packaging can raise consumer awareness, it won’t solve the problem. In order to keep plastic out of the sea, a renewed effort towards the circular economy is needed to keep packaging material in use,” says Luttenberger.

[ Buy NZ Made ]

Growth for local brands

he latest insights from Nielsen* show much of the growth in the FMCG sector in Asia-Pacific is coming from local brands, a space traditionally dominated by larger multinational brands. Such news might come as a bit of a surprise, but is a result of internal business practices, as well as external factors. So why the growth amongst local players? Increasing sense of protectionism might play a role, but local players are able to deliver quality products with a strong ground presence and distribution network, and - more importantly – with clear brand values and a clear brand story. Communicating your brand values and story to consumers increases the emotional connection and loyalty with your brand. This can start with country of origin, so consumers get an understanding of where the product has been produced. If you can, don’t be afraid of listing where each individual ingredient originates from either; consumers appreciate honesty, and it won’t leave them contemplating which ingredients are local and which are imported. Each ingredient or aspect of your product may tell its own story and is all ultimately part of yours. Something I hear often is that “we are not selling to the general public so do not advertise”. If this is you or your company, you are missing a huge opportunity to get out and tell your brand story to your end-consumer. Though you may sell to retailers or wholesalers, it is still crucial to generate demand from all ends. A relatively easy way to communicate this is through social media. Last year, online advertising

overtook television advertising spend in New Zealand. The great thing about social media is that it is relatively low-cost, you can spend as much or as little as you like. Consumers are looking to online means to discover and research products, so your social media channels can play a big part in helping to build relationships between consumers and your brand. FMCG brands make up some of the top Facebook pages in New Zealand; after all, these are everyday products that hold a place in many hearts as well as minds. So, how are your products made? Who are the faces behind your products? We’re not just talking your founders and immediate employees, but customers and those all through your supply chain. Be authentic and you can establish trust and loyalty in your brand with your consumers. The Buy NZ Made Campaign provides a licence for business to use the iconic Kiwi trademark on products that are NZ Made, helping to establish trust and accountability. The team are also happy to help their licensees with posts or story creation for promotion on the BuyNZ channels, and can talk you through setting up social media pages to get you going. New Zealand is a small place, but has some fantastic, uncovered stories to tell. This could include yours, so contact us now and find out how we may be able to help you tell them. *Source: Nielsen, Quarter by Numbers Q2 2017 http://www.nielsen.com/apac/en/insights/news/2017/ winners-can-be-found-across-all-sectors-and-markets. html

Trina Snow Manager Buy NZ Made www.buynz.org.nz

INSIGHTS FROM NIELSEN* SHOW MUCH OF THE GROWTH IN THE FMCG SECTOR IN ASIA-PACIFIC IS COMING FROM LOCAL BRANDS.”

FMCG BUSINESS - FEBRUARY 2018

[ legal advice ]

Christine Liang is a Barrister and Solicitor at Steindle Williams Legal specialising in the area of litigation and dispute resolution.

Anti-Spam Law

ith the constant development of technology, electronic advertising has emerged as a powerful advertising platform. As electronic devices become more and more accessible to the public, businesses have gained a larger target audience. This growth means extra care needs to be taken when a business sends an electronic message to promote its goods and services, to ensure it is compliant with the Unsolicited Electronic Messages Act 2007 (“Act”) or commonly known as the anti-spam law. Under the Act, an individual or organisation (“business”) must not send or cause to be sent an unsolicited commercial electronic message that has a New Zealand link. Unsolicited means without the consent to receive by the customer/recipient. Examples of commercial electronic message include electronic messages that market or promote goods, services, land, businesses or investment opportunities; it does not matter whether the promoted goods or services are free. It is important that businesses comply with the Act, otherwise an organisation that breaches the Act can be fined up to $500,000 and an individual can be fined up to $200,000. If the business contends that the recipient consented to receiving the commercial electronic

FMCG BUSINESS - FEBRUARY 2018

message, then the onus of proof is on the business who contends to show that the recipient has consented. It is possible for a recipient to give a verbal consent as there is no obligation under the Act for the consent to be in writing, as long as businesses bear in mind that if a complaint is laid, the business will bear the onus of proof. Even if the business has the consent of the recipient, a commercial electronic message needs to accurately provide the information of the business, and ensure that the recipient can use the provided information to contact the business. The information must also remain accurate for at least 30 days after the message is sent. In addition to recipient of consent and proper identification of the business, a commercial electronic message must also contain a free and functional unsubscribe facility, that the recipient can use in the event the recipient no longer wishes to receive further commercial electronic messages. The unsubscribe facility needs to remain functional for at least 30 days after the message is sent. The business must cancel the subscription within five working days after the unsubscribe facility was used. Where a business wishes to confirm the subscription has been cancelled to its recipient, or enquire the reason for unsubscribing, these all need to be sent within the five days’ timeframe. It is important for businesses that send commercial electronic messages via text to check with their telecommunication provider that it is free for the recipient to unsubscribe in a text. It is also a misconception thinking that spam requires a large number of messages to have been sent. It only takes sending of one unsolicited commercial electronic message to commit a breach. To ensure your business is not sending out spams, check that you have obtained the recipient’s consent and that if required, you are able to show proof of this consent. Also ensure the message clearly identifies your business and includes clear contact information, and that each commercial message has a free and functional unsubscribe facility.

r 20 or y W inne airy C ateg heese C Crafted D e on st te W hi

17:

DO YOU GROW OR MAKE OUTSTANDING

FOOD OR DRINK? Join New Zealand’s leading producers and enter the Outstanding New Zealand Food Producer Awards to be recognized among the country’s finest food and drinks producers. Entries are open for the 2018 awards. The winners will be announced in May 2018 and featured in NZ Life & Leisure and FMCG Business. We’re looking for the finest products in the following categories:

Supreme Winner: this is awarded to the most outstanding producer.

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

Pr imar y Dairy

W inner 2017: Je

Judging The panel of distinguished food and drinks experts is led by New Zealand’s Lauraine Jacobs.

nics

Entries open now:

Outstandingfoodproducer.nz

Prizes The supreme winner will receive a major story in NZ Life & Leisure May 2018 and a marketing workshop valued at $2,500 from Marvellous Marketing. Winners, gold and silver medalists are eligible to use awards stickers to promote the outstanding quality of their products.

rsey Girl Orga

Thank you to our sponsors: NZ

& Leisure INSPIR ING NEW ZEAL ANDERS

[ events ]

Fine Food New Zealand 2018 A platform for business solutions and growth

Events 2018 Entrepreneurs looking to take new products to market or businesses with an eye on exporting, innovation and commercial production should add Fine Food New Zealand to their agendas in 2018. The leading foodservice, food retail and hospitality trade show takes place 24-26 June 2018 at the ASB Showgrounds and provides an unrivalled opportunity for industry players at all levels to strengthen their brands through the show’s various initiatives. No other New Zealand exhibition gathers so many relevant industry bodies and their members into a single, professional business forum. The show offers exhibitors a platform to present their products to key decision-makers, launch new offerings, meet top buyers and network with leading industry players. Space, however, is filling up rapidly and those interested must act fast. Lorraine Smith, Fine Food New Zealand Event Manager says three quarters of the expo is already booked up, with new and returning exhibitors snapping up floor space. “Adding to the appeal for exhibitors is the launch of exciting new initiatives which bring together the right people, focusing on industry solutions and business growth.” The show includes an insightful seminar series for visitors and exhibitors keen to extend their knowledge. “We’re in talks with some of New Zealand’s key industry bodies to secure speakers who will address trending topics such as global food trends, packaging, technology, health and safety and more to keep our audiences up to date with the latest industry movements,” she adds. “It’s a must-attend event which is so much bigger than food service. It spans food production, food retail, hospitality, packaging, commercial equipment and much, much more,” Smith says. Trade visitor registrations open in February. To book a stand please contact Lorraine Smith (ph 09 555 1141 or email lorraine@finefoodnz. co.nz). For more information visit www.finefoodnz.co.nz.

FMCG BUSINESS - FEBRUARY 2018

FEBRUARY

MAY

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

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

18 NELSON WINE & FOOD FESTIVAL Middle-Earth Vineyards, Nelson, NZ www.richmondrotary.org.nz/bwff

9-10 CLEAN NZ ASB Showgrounds Auckland, NZ www.cleannzexpo.co.nz

18 GIBBSTON WINE AND FOOD FESTIVAL Queenstown Gardens, NZ www.gibbstonwineandfood.co.nz

11-13 THE FOOD SHOW Westpac Stadium Wellington, NZ www.foodshow.co.nz

JUNE

MARCH 15 NZ CHEESE AWARDS Fale Pasifica Auckland, NZ https://nzsca.org.nz/about 24 MARCHFEST Founders Park, Nelson https://www.marchfest.com/

APRIL

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

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

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

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.

[ social sphere ]

Out & About

Party: (L to R) At the ASB Classic Players’ Gemma McCaw n, Gree Art r neu epre Entr or (Sky Sports) (Sky Sports), Stephen McIv Factory). sh (Fre on Nels i Trud and

(L to R) Scott Duncan and Mike McRoberts (Newshub) joined the ASB Classic Player s’ Party.

Foodstuffs is sending seven young butchers to the World Butchers’ Challenge in Belfast, Ireland in March, including Luka Young and Zak Grammer.

SNAP & WIN!

Ahead of Cadbury Caramilk arrivi Cadbury NZ Coun ng in stores, try Head, James Kane donated the first cases of Ca ramilk to Paral ympics NZ and MakeA-Wish NZ, to au ction on trade me .

Has your team moved to new premises, or been part of a fun event, great harvest, or promotional activity? Send us your favourite snapshots to be in the draw to win a Dole fruit bowl taster pack (RRP $30). Back to school hasn’t been easier with Dole!

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

www.theshout.co.nz February 2018

The summer of Sauvignon Blanc

PLUS LEADERS FORUM

AMERICAN PALE ALE

MEET THE WINEMAKER

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

Where does ? ou y ke a t ce n ie exper

14:20 | MALDIVES

EXCELLENCE

EXPERIENCE

B AB I CH WI N ES .COM

[ editorial ]

Leading the way in 2018

CONTENTS February 2018 4

Industry news

5 The Shout NZ Leaders Forum 2018 Insights from industry leaders and their predictions for the coming year 10 Striking Sauvignon Blanc Tasting notes from Cameron Douglas MS 14 Meet the winemaker Introducing some of New Zealand’s winemaking experts 16

The Shout Editor Charlotte Cowan

IT’S HARD to believe it’s 2018 already! And while so far, summer has brought more storms than sunshine, we can expect a brighter year for the Kiwi liquor industry. In The Shout NZ Leaders Forum on pgs 5-9, eight industry experts in the FMCG liquor sector share their predictions for the coming year. From the steady growth of niche and premium offerings; to a continued focus on health and wellbeing, including lower-alcohol and low-sugar options; and a high demand for carbon neutral and sustainably produced products, it seems 2018 is destined to bring a whole lot of positive change to our industry. But while we embrace and welcome change, we simply can’t forget our old friend and Kiwi stalwart, Sauvignon Blanc. While Rosé may be growing in popularity with cider hot on its heels, you simply can’t beat a Sauvignon Blanc on a hot summer’s day (or any summer’s day, really). For the best-of-the-best, take a look at our bumper salute to Sauv on pgs 10-13. We’re thrilled to be back sharing the latest news, events and products in the FMCG liquor industry. If you haven’t already, sign up to our fortnightly eNewsletter at www.theshout.co.nz and check out our Facebook and Instagram pages @theshoutnz for some great giveaways and witty posts! Have a fantastic February!

APA: American Pale Ale Beer writer Neil Miller explores the continuing rise of hoppy beers

Editor’s picks Sundown Gin If you’re searching for a new RTD to quench your thirst this summer, we’ve found it! Sundown is a brand new 100% natural, preservative-free gin RTD made in sunny Tauranga. Available in Gin & Tonic with Lemon; Gin, Lime & Mint with Soda; and Gin & Cucumber with Soda (yes, it’s real cucumber), the 7% ABV 4-Packs are RRP $14.99. For more information, email info@premiumliquor.co.nz Soho Stella Marlborough Sauvignon Blanc 2017 Inspired by eco-conscious fashionistas, this Marlborough Sauvignon Blanc from winemaker David Clouston is classic and confident with lashings of passionfruit and lavish condiments of fresh lime, lemon and capsicum. For more Sauvignon Blancs to savour this summer, head to pgs 10-13. Bohemoth Brewing Company ‘Murica APA Fruity and bitter, yet nicely balanced, this big and bold American Pale Ale is the perfect match to buffalo wings, hotdogs, mac and cheese and all those other US delicacies! For more on APA, check out Neil Miller’s story on pgs 16-17.

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

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

FMCG BUSINESS: THE SHOUT - FEBRUARY 2018

[ news & industry insights ]

Toi Toi Wines releases Sara’s Rosé

Beer - handle with care!

TOI TOI Wines has announced the release of Sara’s Rosé 2017, a new wine created to celebrate co-owner Sara Joyce’s love of the varietal. Provençal-style and salmon pink in colour, Sara’s Rosé has aromas of fresh raspberries, mandarin and lime blossom, with flavours including summer berry fruits, orange citrus and a hint of yellow plum. The style was Joyce’s ‘go to’ in her early 20s before she moved to New Zealand from the UK. “I always thought New Zealand could make a wonderful Rosé with its cool climate varieties and I’m delighted that the Toi Toi team have been able to create a delicious Rosé that’s even better than what I remember from my youth,” says Joyce. Toi Toi Wines was established in 2006 by the Joyce and Bonner families and has grown into one of New Zealand’s top 25 wineries and become recognised globally for its Marlborough Sauvignon Blanc and Central Otago Pinot Noir. The Joyce family become 100% owners of the company in July 2017 when they bought the remaining shares from the Bonners. Toi Toi has developed a reputation for innovation, it was the first winery to produce a Sparkling Marlborough Sauvignon Blanc and a Sparkling Rosé and it recently it released a ‘pink’ Sauvignon Blanc Rosé - a blend of Sauvignon Blanc and Pinot Noir and Sara’s Rosé.

FRESH BEER is a living thing. In the old days, all beer was pale and pasteurised. Now New Zealand brewers make more than 1600 different beers each year. Martin Craig They’re using – or Brewers Guild of New Zealand rejecting – a range www.brewersguild.org.nz of preservation processes. Some beers leave the brewery unfiltered, unpreserved and unpasteurised, to allow the consumers to experience their full flavours and natural tastes. Businesses selling and handling beer can’t assume every beer is shelf-stable. Some are continuing to ferment and grow on your shelf right now, and the way you handle them has a big influence on the quality your customer receives. Hoppy beers, like Pale Ales and IPAs, need to be stored cool and served fresh. Hop flavours fade in a matter of months – a fresh IPA tastes brighter and better than the same beer that’s six months old. These styles especially suffer from being stored at room temperature. And smart beer consumers know this. Many make a habit of checking ‘bottled on’ or ‘best before’ dates, and check labels for terms like ‘bottle conditioned’, ‘unfiltered’ and ‘not pasteurised’. It’s really disappointing, but sadly common, to see beers labelled ‘please keep chilled’ sitting around at room temperature on a warm summer afternoon. It shows the retailer doesn’t know their own products and doesn’t care about what customers get. It’s the brewer’s reputation that suffers when a consumer shells out for a disappointing beer. One bad experience can mean a customer is lost for life. Brewers rely on retailers and venues to present their beer in the fresh condition it left the brewery. Beer consumers are extremely well connected, using social media to tell each other where to find the freshest and best beers. They are prepared to travel to get the good stuff and show other beer fans where to shop. Looking after beer, keeping it chilled, and serving it fresh goes a long way towards growing your reputation for understanding and respecting a good beer. Martin Craig is a beer writer, journalist and publisher of www.beertown.nz Original beer stories. Served fresh.

Top Shelf is back in 2018! NEW ZEALAND’S largest trade liquor event is returning for Fine Food 2018. Scheduled to take place from 24 to 26 June 2018, Fine Food New Zealand is the largest trade event of its kind and includes Top Shelf – a liquor festival dedicated to wine, beer, spirits, craft drinks and suppliers. Top Shelf will combine some of the best local and international brands in one place, offering 29 stands dedicated solely to the liquor sector. There will also be The Shout Lounge, offering demonstrations, tastings, mixology, educational sessions and meet-and-greets. Exhibitor, event partner and Managing Director of Intermedia Group New Zealand, Dale Spencer, says the reason for trade to visit Fine Food New Zealand is simple: “It’s the only show of its kind in the country that gathers all the major players and it only happens every two years. “You can’t beat the awareness and opportunity for face-to-face networking and education about your products to more than 8,000 trade visitors,” he says. For more information, visit www.finefoodnz.co.nz, or for bookings contact Sam Wood on 021 256 6351 or swood@intermedianz.co.nz 4

FMCG BUSINESS: THE SHOUT - FEBRUARY 2018

2 0 1 8

L E A D E R S

FO R U M

Geoff Smith Commercial Development Director Nielsen

Philip Gregan Chief Executive Officer New Zealand Winegrowers

Paul Brannigan Category Manager, Wine Countdown

Sean Jowers Global Key Accounts & Projects Yealands Wine Group

Brendon Lawry Chief Executive Liquorland

Morgan McCann Merchandise Manager Foodstuffs North Island

Cameron Douglas Master Sommelier

Emma McCashin President Brewers Guild of NZ

FMCG BUSINESS: THE SHOUT - FEBRUARY 2018

[ leaders forum ] WHEN PREDICTING the direction of the New Zealand liquor market, growth of craft spirits. Spirits are seeing huge growth rates in smaller it’s important to keep in mind where it has come from and segments, such as single malt and Asian whiskey, as well as what consumer trends will dictate where it is headed next. more established segments like Irish whiskey. Our tastes Over the past five years, the way the alcohol market has for new and different flavours and brands also stretches evolved in New Zealand has meant that brands need to to flavoured bourbons, which is experiencing almost 30% continue seeking out new ways to grow. Five years ago, growth. What has historically been vodka’s domain with mainstream segments (such as clear- and green-bottle its success in premium spirits, we now see in segments beer, Sauvignon Blanc and Pinot Noir, and bourbon RTDs) like gin, with premium gin set to drive all of the growth used to drive the majority of the growth. More recently, we’ve within the category. seen an emergence of the ‘niche’ products, as Kiwis opt for As retailers continue providing incremental range more premium and unique beverage offerings. We believe options to satisfy the ever demanding Kiwi growth will continue to be pushed out to the consumer, understanding what edges as consumers seek new flavours, new consumers are after has never been formats and craft product offerings. more important. For every growth Whilst beer is growing behind the overall trend we see in-store, we need to grocery and traditional liquor market, newer remember that there is a consumer formats (including craft) have sustained motivation behind that trend. Even the growth in beer. As a result, craft beer if we just look at age we know that has taken more than its fair share of the tastes can differ drastically, with headlines. We are still experiencing doubleboomers drinking mostly beer digit growth in craft beer, whilst markets and wine, while millennials have such as the United States, which are a more varied drinking palette. arguably several years ahead of us, are Having said that, we predict seeing decelerating growth as they reach that in 2018 brands will place maturity. While we believe craft beer will more emphasis on reaching Geoff Smith continue to experience growth across consumers based on their needs/ Commercial Development Director both the traditional liquor channel, as attitudes and less emphasis on well as grocery, our bet for 2018 is on the their age/gender.

NIELSEN

NEW ZEALAND WINEGROWERS Philip Gregan

Chief Executive Officer

FMCG BUSINESS: THE SHOUT - FEBRUARY 2018

THE NEW Zealand wine industry continues to perform strongly on the global stage. We have achieved over more than decades of uninterrupted value growth and as a result, wine is now New Zealand’s fifth largest export good. This growth will continue into 2018, and we are in good shape to achieve $2 billion of exports by 2020. We’ve been shouting from the rooftops that in 2017 we overtook Australia to become the third biggest exporter into the United States after France and Italy! Consumers of New Zealand wines are increasingly concerned about how our products are made and the impact on the planet. For this reason, New Zealand grape growers and wineries will continue to place huge emphasis on sustainability - producing premium wine, whilst employing environmentally responsible and economically viable processes. To date 98% of New Zealand’s vineyard area is Sustainable Winegrowing New Zealand certified. This is something we are very proud of. Consumers are also increasingly focused on their own health and wellbeing, and we believe the trend towards lighter alcohol wines will continue in 2018. Lighter wine sales in New Zealand reached $33.5 million in retail value in June 2017 and exports grew to $4.3 million. Discovery remains an exciting element of the New Zealand industry, with consumers wanting to be challenged through exploring new wine styles. Sauvignon Blanc remains our top produced varietal, at 76% of all wine production. However, our geography and natural elements provide diverse and unique grape-growing environments where different wine varieties and styles flourish. Sauvignon Blanc is what we are renowned for worldwide, but watch this space. Finally, in 2018, New Zealand Winegrowers will be learning how to best work with the new Labour-led Government. There are always risks and opportunities with every change in government, and we will do our very best to ensure our members continue to have the support they need to export our incredible wines to the world.

[ leaders forum ]

COUNTDOWN Paul Brannigan

Category Manager, Wine

LOOKING TOWARDS 2018, I predict a continuation of the same emerging wine trends from 2017. We saw significant growth in Rosé this year, resulting in a multitude of new products from suppliers trying to capitalise on its increasing popularity. Many of these were packaged more femininely, with different colours, capsules and label designs from other varietals to appeal to a younger, more discerning female market. The pale salmon colour, and off-dry palate, seems to have struck a note with Rosé drinkers, so I would expect to see more wineries emulate this Provençal Rosé style in 2018. I think wineries will also continue to focus on developing lighter alcohol wines further in 2018. There is a global move away from full-strength alcohol products into lighter styles, and wine has stagnated at around 9-10% ABV over the past few years. I think you will see some better quality examples of even lower strength wines coming to the market as producers innovate more in this space, and consumers look for improvements. Addressing climate change and minimising our carbon footprint is becoming an increasingly important issue

OUR DRINKING habits are changing, moving away from a booze and plonk culture to bespoke vineyards, craft beers, and a massive focus on lower-alcohol choices. Interestingly, millennials are influencing these changes as they’re drinking less than the generations before them, and are often more selective about what they’re drinking as a result. Across the whole supermarket sector, health and wellness is one of the biggest driving forces of change, and in the beer and wine aisles this is also having a big impact. The demand for lower-alcohol and less carbs is showing no signs of slowing down in 2018 and these are conversations we’re regularly having with our beer and wine suppliers, and making more and more space for in our stores. The traditional Kiwi taste is also changing; red wine in particular has seen a big increase in popularity, particularly Malbec. Sauvignon Blanc has fallen from grace, with many customers switching to Pinot Gris, Rosé and cider. Rosé continues to grow in popularity, seeing the biggest sales growth across all varietals. In France, the rise of Rosé has been so influential it is now featured in cider and is also popping up in beer. Maybe something for the future here in New Zealand as well.

for consumers. This flows through to customers wanting more information on the ingredients, origin and production of all the goods they buy, including wine. I believe there will be an increasing requirement for carbon neutral and sustainably produced wines in 2018 as consumers seek them out. At Yealands, we are lucky our founder Peter had the foresight and vision to identify sustainability as a key motivating factor for consumers when he established our carbonzero certified winery in 2008. What’s next? Recycling waste is a huge issue in New Zealand. I believe consumer demand for a regulated container deposit scheme (CDS) to incentivise recovery and recycling of beverage containers will gain momentum in 2018. On 1 December, a CDS commenced in NSW, it will be interesting to see what effect a 0.10c deposit has on recycling rates when redeemed by consumers who return their empty beverage containers. A recent report commissioned by the Auckland Council shows 83% of Kiwis support the establishment of a CDS, and that beverage container recycling rates could increase from as low as 45% to 82%. Watch this space. Change is coming!

Cider’s popularity continues to rise, but sales are very seasonally driven, so last year’s poor summer impacted sales. What’s particularly interesting is that customers are starting to move away from the sweetflavoured ciders, preferring a return to the more traditional, less-sweet, drier-styled, apple ciders. Premiumisation continues to see small, bespoke local breweries and vineyards pique Kiwis’ interest, particularly as the love of craft beer continues on. Craft beer sales continue to see double-digit growth and as competition continues to grow in this area, look out for craft spirits (not that these will be sold in the supermarket) in the future, as well as more clever packaging, new flavours and interesting label designs. Bottled wines under $10 are also now in double-digit decline, as we see more customers willing to spend more money on premium wine. Also look out for international trends making their mark here in the Kiwi market, such as wine in a can. Overseas we’re also loving sunactivated-ink packaging, augmented reality with digital packaging and Rosé on ice, served like brandy. So watch this space as 2018 is shaping up to be another exciting year.

YEALANDS WINE GROUP Sean Jowers

Global Key Accounts & Projects

FMCG BUSINESS: THE SHOUT - FEBRUARY 2018

[ leaders forum ] WE BELIEVE 2018 will be an exciting one for liquor retail; exciting because we continue to see consumers’ tastes and expectations evolve. New Zealanders are focusing on ‘better for you’ and healthier options and this will only increase. In alcohol categories, this translates to people focused on higher quality, lower volume versions of the same drinks they have always enjoyed. Premium wine and Champagne will grow in 2018 and Chardonnay will make a strong comeback. Craft beer growth will start to flatten out (but still outperform mainstream and premium) and boutique spirits will strengthen throughout 2018. A higher dollar spend is lifting the consumer’s expectation of the products they are buying and who they are buying them from. This will mean retailers need to focus on solutions and occasions, as opposed to focusing primarily on products. As retailers, this provides us with the opportunity to communicate to consumers (directly in-store or through a mix of social

media) and help them with decisions to meet their needs. From exploring a new boutique gin brand, the expanding the Rosé category, or navigating through craft beers – we can have a whole lot of fun talking about exciting new products and ways to enjoy them. We also predict ‘old-school’ cocktails made with premium spirits will make a strong comeback in 2018, but there will be a modern twist. Aperol spritzers, frozen Rosé-based drinks for summer and Prosecco will continue to take a greater share of the sparkling wine. Along with this trend, you will see premium mixers move from the bar to home. Gone are the days of spending $60+ on a premium bottle of spirits and ruining it with a cheap, highsugar mixer. I am excited to see what creative suppliers are going to bring to market. Our best suppliers also spend a lot of time focused on the consumer and talk to us about new products to both lead and satisfy customers’ desires. I think we

will see pack format deliver some exciting innovation (look out for wine in a can that is actually cool) and I believe that over the coming year consumers will embrace lower alcohol options of their favourite brands and drinks.

THE MILLENNIAL shopper is shaping what we’re doing instore now and certainly where we’re headed. They are informed, savvy and unrelenting in their drive to try new products and experiences, but they are also careful and caring – about each other, their own health and well-being and where their choices come from. It’s an exciting time to be in this business. Wine: We’re loving what’s happening in the Rosé segment. We’re seeing a New Zealand expression of a beloved French tradition – slightly sweeter, more strawberries and cream. Rosé sales are most certainly on the rise and this varietal featured in the recent New World Wine Awards. Provenance is a real driver for customers and we’re seeing a swing towards single vineyards and subregions, like Awatere and the Waihopai Valley. It’s no longer about Central Otago, it’s about Bannockburn and Gibbston Valley. Champagne is now considered a more ‘everyday’ drink and New Zealanders are beginning to understand and expect ‘vintage’ offers. We’re seeing significant growth in this category in store. Our New World Wine Awards have evolved into a more robust competition. The 100 points system is globally

recognised and gives customers even more certainty they are making the right decision. Beer and cider: Our shelves have never looked more exciting and colourful. The category has exploded – but there are watchouts. Consumers are increasingly informed in this category – and there’s certainly no pulling the wool over their eyes when it comes to a quality Pale Ale versus a not-so-perfect example. Genuine craft versus ‘corporate craft’ is interesting to watch, likewise we’re watching how smaller brewers are struggling to keep up with demand. The New World Beer and Cider Awards encourage brewers of all levels to lift their game, develop products to exceed customer expectations and allow them to enjoy scale from the get-go. Cider makers are experimenting with bold new flavours and diversifying into other fruit-based beverages. Look out for ginger, citrus and fermented combinations – these are certainly tapping into the ‘better for me’ theme. Other trends: Packaging is the new black. Suppliers are really shaking things up with the rise of cool ‘cans’ and other recyclable, reusable packaging in both beer and wine. Millennial shoppers are moving away from the brands their ‘olds’ used to drink and embracing the wealth of options now available to them which enable them to express their personalities on their ’gram and snap’ feeds.

FOODSTUFFS NORTH ISLAND Morgan McCann Merchandise Manager

FMCG BUSINESS: THE SHOUT - FEBRUARY 2018

LIQUORLAND Brendon Lawry Chief Executive

[ leaders forum ] 2018 SHOULD be a very good year for New Zealand’s wine sector. With a decent harvest and better than average quality, all wine regions should benefit. Early investment with your favourite producers should be a considered. Despite some rain events threatening disease in some areas, these will be managed with the usual measures in the vineyard and perhaps some ingenuity in the winery if required. The results will begin to show with first release wines around June. There will likely be some continued purchase opportunities of 2017 vintage wines but try before you buy. It’s a mixed bag of results from that vintage, so don’t let fancy labels and attractive stickers lead you – let the wine speak for itself first. A trend that I find somewhat exciting is the number of visitors to New Zealand with serious wine tasting and buying desires on their agendas. But more importantly, reaching out for specific guidance as to which producers and places to see. There are plenty of drivers to take them around but a dearth of experts to guide them. Visitors from the USA and other countries are keen to buy wine to take

home, but sometimes don’t buy at the thought of schlepping their wine around with them - so the need for more efficient and cost-effective means to transport their wine to the airport (at least) is needed. A trend that I find somewhat disturbing is the slow-yet-obvious erosion of the smaller family owned and operated wine company. It is critical that we taste, invest and buy from the small, locally produced wine as well the easy buy options from the big guys. One final trend I find disturbing is the emergence of sub $20.00 at retail Pinot Noir! This is not good and does not do the variety or company that produces it any favours. We should not be exporting such wines and it is teaching the buying public that cheap Pinot Noir is good Pinot Noir. We have to be so very careful this version of Pinot does not become the expectation of our overseas consumers. It happened with Sauvignon Blanc so let’s be very careful with this one please. I’m loving the jump in quality of our bottle-fermented sparkling wines and would encourage buyers to show off local as well as imported when entertaining.

MASTER SOMMELIER Cameron Douglas MS

FOUR TRENDS TO WATCH IN 2018 – Drink local Local breweries are popping up all over New Zealand. Now commercial brewers are operating in Kaikoura, Twizel and Kaka Point (North Islanders might have to Google that one!). It’s the same in cities, with small breweries focusing on local neighbourhoods. Being part of a community gives small new breweries a point of difference over established national brands. Consumers are also looking for beers with a local advantage – the shorter supply chain means a fresher product with a smaller environmental footprint. More demanding consumers We’ve come a long way from “Don’t know much about beer but I know what I like”. 2017 saw the successful start of national training for hospitality staff and beer judges. 2018 customers are prepared to spend well on quality beer. But they’re better informed and they expect well-informed staff and beer that’s stored and sold in prime condition.

BREWERS GUILD OF NZ Emma McCashin President

More beer Contract brewing will continue to grow this year as small brewers seek economies of scale. Established small breweries are contracting-out their core ranges, giving themselves the opportunity to experiment with innovative small batches at their original brewery. Continued innovation Growing demand for sour beers, wild fermentation and hazy unfiltered IPAs shows New Zealand beer drinkers are ever-more willing to experiment with unusual styles and flavours. What was once weird and wacky is now a sought-after product at a premium price. But the beers themselves must be well-made and drinkable. Brewers and beer consumers are quick call out products that are jumping on a bandwagon. FMCG BUSINESS: THE SHOUT - FEBRUARY 2018

[ tasting notes ]

Striking Sauvignon Blanc

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.

When a glass of Sauvignon Blanc is swirled and the bouquet is released, it becomes immediately recognisable for its aromas, flavours and textures. Well-made Sauvignon Blanc releases many striking aromas - from pungent fresh herb and tropical fruit, to the peach, citrus, apple, gooseberry and grass/hay. New Zealand’s southerly location, strong maritime influences and narrow shape gives rise to a climate that is classified as cool, promoting naturally higher acid levels, yet warm enough and with abundant sunlight to fully ripen the variety across the whole country. Hawke’s Bay, the Wairarapa, Nelson and Marlborough capture these attributes well. Sauvignon Blanc pricing at retail is fiercely competitive with prices as low as $6.00 a bottle and averaging around $15.00. For restaurateurs, it means sourcing examples that are unlikely to be found easily at retail so they can price point wines for their customers that are seen as fair and reasonable, whilst listing brands that are recognisable and hopefully adventurous as well. Sauvignon Blanc on wine lists are a great buy, from

FMCG BUSINESS: THE SHOUT - FEBRUARY 2018

around $35.00 to $60.00 a bottle; and work well with boldly flavoured fare. As a section on wine lists, however, it is shrinking and not due to a lack of popularity but to make way for other varieties that are garnering attention – such as Albarino and Pinot Gris. ‘Classic’ or ‘basic’ styles of Sauvignon Blanc do not change very much and, like other varieties, are subject to vintage and winemaker skillset. However, there are styles that should be considered to add breadth and depth to give customers a better choice. For example, there are some producers releasing great wines with four to five years bottle age, others with a little Sauvignon Gris or even Pinot Gris as a coferment; and some wines aged in very old oak barrels adding complexity without oak flavour. The tasting of wines for this month’s article continue to demonstrate the versatility, reliability and some changes in New Zealand Sauvignon Blanc winemaking, as well as the strength of some ‘classic’ expressions.

[ tasting notes ]

TE PĀ MARLBOROUGH SAUVIGNON BLANC OKE 2016 A mixed fruit, mineral and layered bouquet with aromas and flavours of white peach, lemon, some apple and mild tropical fruit tones, a light lees and gentle spice layer adding complexity. The palate is all about texture then flavour with tangerine, lemon and tropical fruit, gentle wood spice and abundant acidity. Drink now and through 2022. Points 94 RRP $25.00 Distributor: Beverage Brothers Ltd Phone: (03) 390 1377 www.tepawines.com

WAIRAU RIVER RESERVE MARLBOROUGH SAUVIGNON BLANC 2017 Complex, fresh, youthful and vibrant bouquet with aromas of fragrant fruit spice, whitefleshed fruits, citrus and some tropical notes. Quite a full and rich attack overall. The palate confirms this with layers of textures and fruit flavours accentuated by high acidity. Lengthy finish with a complex edginess. Drink now and through 2022. Points 93 RRP $30.00 Distributor: Federal Merchants & Co Phone: (03) 572 7950 www.wairauriverwines.com

CLOS MARGUERITE MARLBOROUGH SAUVIGNON BLANC 2017 Detailed and layered bouquet with aromas of sliced bell-pepper, peach, lemon, quince and grapefruit. A soft, dry stone mineral layer adds depth and a little intrigue. Abundant acidity with a silky sheen texture, just warming alcohol and pristine finish. Balanced and lengthy. Drink now and through 2022. Points 93 RRP $29.00 Distributor: Clos Marguerite Phone: (021) 415 692 www.closmarguerite.co.nz

SOHO STELLA MARLBOROUGH SAUVIGNON BLANC 2017 Pungent, fruity, herbaceous and lively bouquet, showing off the power and impact of classic Marlborough SB. Flavours include white peach, Meyer lemon, fresh lychee and mango. Loads of salivating acidity, fresh herbs and pure fruit finish. Drink now and through 2020. Points 93 RRP $25.00 Distributor: SOHO Wines Phone: (09) 360 5443 www.sohowineco.com

MUD HOUSE SINGLE VINEYARD WOOLSHED MARLBOROUGH SAUVIGNON BLANC 2017 Ripe, vibrant and engaging bouquet of SB with aromas and flavours of crunchy red and green apples, lemon and sweet grapefruit, then tropical fruit and some sweet herbs. Very crunchy and fresh on the palate with punchy acidity highlighting the citrus flavours, some wet stone mineral and spice. Youthful and vibrant - drink now and through 2020. Points 92 RRP $22.99 Distributor: Hancocks Wine, Spirit and Beer Merchants Phone: (027) 336 9967 www.mudhouse.co.nz

WAIRAU RIVER MARLBOROUGH SAUVIGNON BLANC 2017 Varietal, vibrant, fruity and pungent with abundant tropical fruit flavours of passionfruit and mango laced with tangerine, lemon and red apple. Plenty of sweet herb and acidity, a little fruit spices and lees residue. Light-weight, balanced and wellmade. Drink now and through 2020. Points 92 RRP $20.00 Distributor: Federal Merchants & Co Phone: (03) 572 7950 www.wairauriverwines.com

FMCG BUSINESS: THE SHOUT - FEBRUARY 2018

[ tasting notes ]

WAIMEA NELSON SAUVIGNON BLANC Pungent, herbaceous and grassy with loads of fresh tropical and citrus fruit flavours. Some jalapeno spice, zesty citrus and firm peach flavours, distinctive and full of energy. Drink now and through 2022. Points 91 RRP $17.99 Distributor: Federal Merchants & Co Phone: (09) 578 1823 www.waimeaestates.co.nz

SEIFRIED NELSON SAUVIGNON BLANC 2017 Fruity, varietal and energised bouquet with aromas and flavours of lemon, tangerine and citrus peel, fresh herbs and pineapple flesh. Vibrant and refreshing on the palate with abundant acidity and satin texture, lengthy finish. Drink now and through 2021. Points 91 RRP $17.00

Distributor: Seifried Estate Phone: (03) 544 5599 www.seifried.co.nz

CLARK ESTATE ‘UPPER AWATERE’ MARLBOROUGH SAUVIGNON BLANC 2017 Youthful, fresh, very fruity, lively and herbaceous bouquet. The palate shows off flavours of lemon and passionfruit, red apple and fuzzy-skin peach. A mix of stone and mineral notes adds some depth. Plenty of acidity, a coarse silk texture and balanced finish. Drink now and through 2020. Points 90 RRP $23.00 Distributor: Clark Estate Phone: (021) 386 831 www.clarkestate.com

FMCG BUSINESS: THE SHOUT - FEBRUARY 2018

AKARUA CENTRAL OTAGO SAUVIGNON BLANC 2017 Aromas and flavours of white-fleshed fruits led by red apple, then peach. A floral layer of rose then minerality adds some depth alongside a softer varietal attack on the senses. Dry, crisp and refreshing expression, lengthy finish. Drink now and through 2022. Points 90 RRP $29.00 Distributor: Hancocks Wine, Spirit and Beer Merchants Phone: (03) 445 0897 www.akarua.co.nz

WAIPARA HILLS EQUINOX WAIPARA VALLEY SAUVIGNON BLANC 2017 Youthful and fruity bouquet with aromas and flavours of white fleshed fruits, honeysuckle, some tropical notes and lemon zest. The palate reflects these with medium+ acidity,

[ tasting notes ]

flavours of peaches, apples and some lemon barley sugar. Balanced and well-made overall. Drink now and through 2021. Points 90 RRP $34.90 Distributor: Hancocks Wine, Spirit and Beer Merchants Phone: (027) 336 9967 www.waiparahills.co.nz

LOVEBLOCK MARLBOROUGH SAUVIGNON BLANC 2017 Complex, elegant and calm SB bouquet with soft fresh herbs, ripe citrus and apple fruit aromas. Crunchy, fruity and just-dry on the palate, with a light savoury herb edge, then flavours that match the nose. Some wild flower moments and gentle lees derived texture. Fairly lengthy finish and well suited to summer fare. Drink now and through 2020. *Organic and vegan-friendly

Points 90 RRP $21.99 Distributor: Hancocks Wine, Spirit and Beer Merchants Phone: (09) 365 1471 www.loveblockwine.com

MT HECTOR MATAHIWI ESTATE WAIRARAPA SAUVIGNON BLANC 2017 Enticing and complex bouquet with aromas of sweet herb, chalk-like/silty mineral layer, Meyer lemon, peach and even a touch of quince. Dry, light weight, some spice moments, elevated acidity and mineral finish. Well-made and lovely balance. Drink now and through 2022. Points 90 RRP $14.99 Distributor: Matahiwi Estate Phone: (06) 370 1000 www.matahiwi.co.nz

MUD HOUSE MARLBOROUGH SAUVIGNON BLANC 2017 Fruity, ripe, plush and forward bouquet with tropical fruits leading - mango and passionfruit, then peach and citrus fruits. Juicy, fleshy and plush on the palate with a fine satin texture, plenty of acidity and balanced finish. Drink now and through 2019. Points 89 RRP $14.99 Distributor: Hancocks Wine, Spirit and Beer Merchants Phone: (027) 336 9967 www.mudhouse.co.nz Wines are scored out of 100 points and are listed in no particular order. Numbers are not indicative of a ranking.

FMCG BUSINESS: THE SHOUT - FEBRUARY 2018

[ people ]

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

Steve Skinner

Jack Cornes

Winemaker for Elephant Hill With an economics major under his belt, Steve Skinner walked away from a corporate career to chase his real dream of becoming a winemaker. He graduated from Charles Sturt University and EIT Hawke’s Bay in 2000 and worked at Trinity Hill before taking up the Head Winemaker role at Elephant Hill in 2006. Skinner has been at Elephant Hill for every vintage and has been instrumental in shaping the wine style and quality. He is a strong believer in making wine that reflects the terroir in which it is grown and says one of the most rewarding challenges as a winemaker is to craft a wine that best represents the vintage by playing to the strengths of the harvest and minimising the challenges. As well as winemaking in New Zealand, Skinner also enjoyed some Northern Hemisphere sojourns to British Columbia and the Napa Valley, as well as Sancerre and Haut Savoie in France.

Winemaker for Sacred Hill Jack Cornes joined Sacred Hill in 2015 and has worked at vineyards in Hawke’s Bay for more than 13 years. He loves the challenge of working with the elements to produce outstanding wines each year; and the fact that the job never has a dull moment. Jack recently created Sacred Hill’s 2017 Rosé, which has already won a Gold Medal at the New Zealand International Wine Show. His personal favourite style of wine is Syrah, a red originating from Rhone Valley in France which is now being produced to international acclaim in Hawke’s Bay. He believes Sacred Hill’s refined and elegant Syrah competes with some of the best wineries in the world. For Jack, an ideal Friday night consists of a bottle of Deerstalkers Syrah shared with friends, and accompanied by a backstrap of venison with blackberry jus and mashed potato.

Joel Watson

Jules Taylor

Chief Winemaker for Luna Estate Hailing from the sunny Hawke’s Bay, a thirst for adventure led Watson to travel and live abroad for almost 15 years. Much of this time was spent immersed in the Australian wine scene. Hospitality created opportunities for an education in wine tasting and service and life as a sommelier for leading restaurants in Melbourne and Sydney proved seminal, creating a yearning for deeper understanding. Tertiary study in wine science and many vintages at home and abroad anchored a love of the wine craft. At home now in Martinborough at Luna Estate, Watson enjoys working with Burgundian varieties from the two unique vineyard sites, crafting wines that reflect time and place.

Winemaker for Jules Taylor Wines Jules’ life began in early ’70s, just as the fledgling Marlborough wine industry started planting its first vines. Growing up in the region meant the ebb and flow of the viticultural seasons have never been far from view. After completing a degree in Viticulture at Lincoln, Jules explored the globe’s other winemaking regions, working numerous vintages in Italy and Australia. On her return, Jules worked her way to Chief Winemaker at one of New Zealand’s most acclaimed wineries, eventually branching off to create her own label in 2001, with just 200 cases of Riesling. From a little moonlighting project, JT Wines has emerged as a highly acclaimed and internationally-recognised wine label. With an intimate understanding of the region’s diversity of climate and soils, Jules brings a bespoke approach to her winemaking, crafting wines that are a unique and personal expression of Marlborough that can be relished and enjoyed by all.

FMCG BUSINESS: THE SHOUT - FEBRUARY 2018

CONTACT YOUR GIESEN GROUP REPRESENTATIVE OR PHONE 03 344 6270

APA: AMERICAN PALE ALE Beer writer Neil Miller explores the continuing rise of hoppy beers.

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

AMERICAN PALE Ale (APA) is, by beer standards, a very modern style. While beers like Pale Ale, Trappist Ale and Stout can trace their provenance back many hundreds of years, APA emerged only in the 1980s. It was created by US microbrewers, mostly on the West Coast, by using American ingredients (particularly native hops) when emulating the traditional British Pale Ales. The Oxford Companion to Beer notes that Sierra Nevada Pale Ale from California is commonly considered the originator and prototype of the style. My real APA education occurred in and around the World Beer Cup in 2009, which I attended as a journalist. It was held in San Diego, the virtual centre of APA country, and I spent a lot of time sipping these incredibly hoppy, assertive yet drinkable beers in the company of the people who made them and wrote about them. I will always recall fondly the Moylan Moylander, which was described on the menu as ‘fat and resiny, with aggressive and excessive hops swinging on an enormous malt backbone like naughty monkeys on a vine’. Who could resist that description? It is no coincidence that on the same trip I discovered my favourite beer in the world – Pliny the Elder, an 8% hop bomb from Russian River Brewery. In fact, four of my top five beers ever could be considered APAs.

FMCG BUSINESS: THE SHOUT - FEBRUARY 2018

There is, as usually happens with beer styles, some debate about the definition of an APA and how it may differ from an India Pale Ale (IPA) made using American hops. The Oxford Companion is adamant that “hops define the unique American pale flavour” and lists the classic hops Cascade, Centennial, Columbus, Simcoe and Amarillo. New Zealand brewer Andrew Childs, Head Brewer at Behemoth Brewing Company, takes a different approach. He argues that “an American Pale Ale will probably have more speciality malts – a little more malt character than a straight IPA”. However, he correctly points out that the APA/ IPA line can be quite blurred. There are a number of beers on the shelves labelled IPA which could easily be counted as APA. I have chosen a relatively relaxed definition – the beer must have at least some US hops, and should be inspired by the flavour profiles of classic American Pale Ales. Traditionally (if a style dating from the ’80s can have a tradition), this is a fruity (particularly grapefruit and orange), firmly bitter and often stronger ale. The situation became more complicated with the recent emergence of the East Coast IPA movement which is an intensely cloudy almost soupy evolution of the classics. The first New Zealand APA I tasted was the sadly discontinued Emerson’s APA. It was a revelation

[ beer feature ] – so hoppy, yet so drinkable. It came back an APA is now almost expected of every as a limited release a few years ago and brewery. “You definitely have to have one I was eager to try this revolutionary beer in your range,” he says. “If you don’t, then again. It was nice but unremarkable. I asked you risk being overlooked. APA is now an Emerson’s founder Richard Emerson why everyday beer style.” he had changed the recipe. His answer Behemoth’s flagship APA is Behemoth (and I am paraphrasing because I asked ‘Murica, a 6% and 50 International him at the pub) was: “The recipe is Bitterness Units (IBU) American-style exactly the same - the only thing that has India Pale Ale. Childs jokingly describes it changed is your taste buds, you want as “tasting like freedom and loose gun more hops now”. laws” but seriously, it is a beer that It turns out many other New is fruity and bitter from the hops, Zealanders want more hops and have yet nicely balanced by the generous embraced the APA style. It is a fiercely use of robust malts. It has been a contested category at the New feature of their range for four years. Zealand Beer Awards and the growing ‘Murica is widely available around popularity is demonstrated by larger New Zealand and now in Illinois, brewers embracing what was once USA. Childs is rightly amused at the considered a niche market. concept of selling American Pale Ales Examples include the new Mac’s to Americans. Interstate APA and the success of “In America, everyone wants New Boundary Road Mumbo Jumbo APA. Zealand hops and in New Zealand, However, the current forerunner in everyone wants American hops,” he the style is Panhead Supercharger says. “We have a shipment on the APA, thanks, in part, to the extensive water at the moment of a serious distribution by Lion. However, it was amount of American hops on which and remains a fine beer in its own we have spent an outlandish amount Behemoth’s ‘Murica APA right with a balance of of money. citrus up-front, a firm “We just like the flavours that body and strong finish. David you get from American hops which can be very Gaughan, brewer/owner of different from New Zealand hops. We also like to Eagle Brewing in Christchurch, combine the two quite a lot,” says Childs. says Supercharger seems Asked about the future, Childs says that APAs to have become “everyone’s and American IPAs are still on the up. “There are go-to beer”. It is flying off still plenty of people who are discovering Pale Ales the shelves. who are yet to discover APAs properly,” he says. In terms of craft versions, “I think there is still a huge amount of growth left the pioneer was Epic over the next five to 10 years for this style.” Brewery Company. Brewer Luke Nicholas was a fan of American hops well before they became so fashionable. His Epic Pale Ale stunned and delighted Kiwi drinkers with the bold use of US hops. It remains his best-selling beer but he has created dozens of other APAs to meet the increasingly demanding and hop-fuelled tastes of consumers. Tuatara APA was also a highly influential brew in the development of the market. Far from being a niche The current forerunner style today, Gaughan in the style is Panhead argues that making Supercharger APA

YOU DEFINITELY HAVE TO HAVE AN APA IN YOUR RANGE. IF YOU DON’T, THEN YOU RISK BEING OVERLOOKED. APA IS NOW AN EVERYDAY BEER STYLE.” DAVID GAUGHAN, EAGLE BREWING

“In New Zealand, everyone wants American hops,” says Andrew Childs from Behemoth Brewing Company

FMCG BUSINESS: THE SHOUT - FEBRUARY 2018