FMCG BUSINESS FEBRUARY 2022 by The Intermedia Group

fmcgbusiness.co.nz

L E A D I N G

I N D U S T R Y

N E W S

FEBRUARY 2022 – Volume 9 – No 1

FIRST to MARKET

Our new packaging

with post consumer recycled (PCR) soft plastic packaging

PLUS! LEADERS FORUM n FUNCTIONAL FOODS n BREAD WINNERS n PACKAGING & DESIGN n NEW ZEALAND’S LARGEST FMCG AUDIENCE

contents FEBRUARY 2022

UP FRONT

24 31

EDITOR’S NOTE

INDUSTRY NEWS

EVENTS 40

DAIRY FREE AWARDS 2022

SPECIAL FEATURES

RED MEANS RESTRICTIONS

11 LEADERS FORUM Expert advice for the year ahead

41 WHAT’S ON Events for your diary

24 BREAD WINNERS What’s driving sales in the bread category

43 OUT & ABOUT Our people at work and events around the country

28 FUNCTIONAL FOODS Category insights and new product launches

CONVENIENCE & IMPULSE RETAILING 44

REGULARS 6 HELLERS - EASY AND DELICIOUS ALL WRAPPED UP 8 ENTERTAINING HAS NEVER BEEN MORE DELISIO 9

INDUSTRY NEWS

10 BEST IN SEASON Fresh produce update

GOOD BUSINESS

LEGAL ADVICE

31 INDUSTRY NEWS AND INSIGHTS 32

PACKAGING & DESIGN

36 COVER STORY New, reycled content packaging for Handee, Purex & Sorbent

EDITOR’S NOTE

45 NZACS Leaders Forum with David Hooker, Executive Director, NZACS 46 Z ENERGY Leaders Forum with Andy Baird, GM Retail, Z Energy 47 NPD Leaders Forum with Louise Mitchell, Senior Category Manager, NPD 48 PETER JOWETT WINNER Andrew Olsen, Key Account Manager P&C, Frucor Suntory 49 PETER JOWETT RUNNER-UP Kailee Weir, Trade Marketing Rep, BAT NZ

FMCG BUSINESS - FEBRUARY 2022

[ editorial ]

WELCOME TO 2022! I hope you had a chance to relax, rest and recharge over the holidays. I tried to switch off for a while during the summer break, but I’m probably not the only one who kept on wondering: What will this new year throw at us? Will we find ways to travel safely again? Will supply chain issues get worse, now that Omicron is here? Turn to our special Leaders Forum on pg 11-22 for expert advice and trend predictions that may be useful as we begin to tackle the third year of the Covid pandemic. Our contributors include Chief Executives from the FGC, IRI, Nielsen, Countdown and Foodstuffs. We are delighted to welcome new Foodstuffs South Island CEO Mary Devine to the Forum, which is sponsored by James & Wells, one of Australasia’s largest, privately owned, patent and trade mark attorney firms. The last couple of years have brought us massive challenges and new obstacles, but we also found creative, innovative solutions as our industry swung into survival mode. Businesses will need to evolve as quickly as consumer behaviour is changing. IRI’s recent State of The Industry presentation underlined the value of new digital strategies and practices to stay competitive, given the digital transformation that has occurred during the pandemic. Total New Zealand online retail sales have grown by 40% over the past two years to hit $8.3bn. Companies that have adapted quickly and found solutions to growing consumer demand in online channels have benefitted the most. Countdown has seen its online penetration double since 2019 to 13%, which is more than the online share of total retail at 11.4%. Consumers want a consistent shopping experience, so a seamless omnichannel strategy will be crucial. We hope you and your team are off to a good start in the new year. We’d love to hear what you’re working on, so please keep in touch to share your news, events and NPD. Take care and stay safe,

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

PUBLISHED BY C&I Media (NZ) Ltd PO Box 109 342 Newmarket, Auckland 1149 MANAGING DIRECTOR Simon Grover COMMERCIAL DIRECTOR Safa de Valois safa@c-store.com.au EDITORIAL DIRECTOR James Wells james@intermedia.com.au HEAD OF CONTENT Tamara Rubanowski trubanowski@intermedianz.co.nz ph: 027 278 4761 MANAGING EDITOR – C&I NZ Deb Jackson d.jackson@c-store.com.au NATIONAL SALES MANAGER Vicky Bennett vbennett@intermedianz.co.nz ph: 021 626 115 ART DIRECTOR Leanne Hogbin leanne@intermedia.com.au PRODUCTION MANAGER Jacqui Cooper jacqui@intermedia.com.au DIGITAL AND PRINT COORDINATOR Eclypse Lee elee@intermedianz.co.nz

C&I Media takes its Corporate and Social Responsibilities seriously and is committed to reducing its impact on the environment. We continuously strive to improve our environmental performance and to initiate additional CSR based projects and activities. As part of our company policy we ensure that the products and services used in the manufacture of this magazine are sourced from environmentally responsible suppliers. This magazine is printed on Impress stock from Spicers Paper using FSC-MIX source pulp from responsible sources and other controlled sources. We print using BIO-inks that contain base materials from renewable resources including wood resin (rosin, colophony), vegetable oils, linseed oil and soy bean oil. This magazine is printed by ICG, an ToitŪ enviromark gold certified printer.

ISSN 2382-1663 (print) ISSN 2624-4802 (online)

ON THE COVER The Handee, Sorbent and Purex range of products has been transitioning to 20% recycled plastic packaging since October 2021. Read the full story on pg 36.

FMCG BUSINESS IS PROUDLY ASSOCIATED WITH food& grocery COUNCIL NEW ZEALAND

FMCG BUSINESS - FEBRUARY 2022

FMCG Business is audited and verified by ABC. DISCLAIMER This publication is published by C&I Media (NZ) 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 © 2022 - C&I Media (NZ) Ltd

NEW LOOK MULTIPACKS COMING SOON

G N I H T E M SO e n o y r R e O v F e G N I H T E M SO e n o y r e R v e FO

[ news ]

READY OR NOT – HERE COMES OMICRON All of New Zealand moved to the Red setting swabbing and COVID-19 tracking systems in of the COVID Protection Framework on Australia are overwhelmed by the Omicron Sunday 23 January, to manage the spread of variant, and we need to have a variety of the highly transmissible Omicron variant in RATs stockpiled ready for use in businesses, the community. homes and public facilities. The Government also announced new Dr Ayesha Verrall, Associate Minister mask and physical distancing mandates, of Health and of Research, Science and restrictions for gatherings and events and Innovation, said that information about how a plan for “Three Phases of Omicron in the “critical” businesses will source RATs through Community”*, to tackle the outbreak. the Ministry of Health’s supply portal will be The FGC expressed concerns regarding released soon. staffing and maintenance of the food and New Zealand Road Transport Forum grocery supply within the current framework. Chief Executive Nick Leggett also expressed EMA CEO Brett O’Riley said rapid antigen concerns, specifically about the effect of Rapid antigen testing is what is going to keep testing (RATs) is what is going to keep New Omicron on truck driver availability and the New Zealand open for business, say industry experts. Zealand open for business and avoiding supply chain. the “big sick” for our workforce, based *For more information and updates visit https://covid19.govt.nz/news-and-data/latest-news/governmentannounces-three-phase-public-health-response-to-omicron/ on observations in Australia and other countries. O’Riley said nasal

FOR MORE INDUSTRY NEWS FOLLOW US ON

CHECK OUT WWW.FMCGBUSINESS.CO.NZ

[ sponsored content ]

EASY AND DELICIOUS ALL WRAPPED UP Hellers are extending their popular Short Cuts range with the launch of a new Wraps and Quesadilla range. These are quick to cook for a tasty meal or snack and come in a variety of flavours. “We know consumers are living busy lives with the convenience of this range appealing to 60% of shoppers we surveyed saying they would definitely purchase from this range,” says Marketing Manager Brydon Heller. “Shoppers are also constantly looking for inspiration, 55% of shoppers are challenged with thinking of new and different things to eat. These products delivery on both these needs. “Pulled Pork and Mexican Mince are proving to be the new Kiwi favourite with 59% of shoppers finding these flavours very appealing and you can’t go past a classic Mince & Cheese,” Heller says, “we know these products are going to be a great addition to the Short Cuts range.” Hellers are supporting this launch with in-store demonstrations, social media campaigns featuring Leigh Hart and a strong promotional programme. Make the most of this endless summer season and stock your shelves with these tasty and convenient products, your customers will thank you for it! The products are all in market now, talk to your local Hellers Sales Manager for more information or contact us on 0800 Hellers (435537). 6

FMCG BUSINESS - FEBRUARY 2022

W E N We’ve done the

hard work for you with these

tasty

wraps & quesadillas

Value Added Butchery (excl. Chicken) growing at 29%* Wraps category volume growing at 32% vs YA*

MADE IN NZ

*Source: IRI Scan Data |Total Grocery | Quarter to 02/01/22

ARTIFICIAL COLOURS OR FLAVOURS

MSG FREE

[ sponsored content ]

“DELISIO LETS YOUR TASTEBUDS TRAVEL IN STYLE”

ENTERTAINING HAS NEVER BEEN MORE DELISIO – GREAT NEW LOOK AND DELICIOUS NEW FLAVOURS The Premium Potato Chip segment continues to experience the highest growth in the Salty Snacks Category, growing at 15%. The segment is now worth over $103M, making it the second largest in Salty Snacks. In the last year, Premium Potato Chips delivered more than $13M in value sales growth, higher than any other Salty Snack segment demonstrating a strong consumer desire for quality products and the importance of this segment to retailers (Source: IRI scan data, Grocery, MAT to 28 November 21). Premium Potato Chips growth was driven by a penetration gain of +3.8 percentage points, equating to an additional 75,000 households purchasing the segment in the past year (Source: Homescan Nielsen data MAT to 7 November 21). Delisio potato chips are the ideal chips for the casual entertainer. Those who love spending time with friends and family, entertaining at home and need an easy snacking solution that they know their guests will love and are a little more special. In March, Delisio will be featuring a new look in store and three new flavours – British Style Prawn Cocktail, American Style BBQ Ribs, and Italian Style Margherita Pizza. Anna Dempsey, Senior Brand Manager explains: “Consumers are looking for products that enhance experiences and entices taste buds. Delisio is known for bringing interesting flavours to New Zealander’s which are inspired by the world’s finest flavours. The refreshed pack 8

FMCG BUSINESS - FEBRUARY 2022

design showcases the places around the world that have inspired each of the chip flavours. Since COVID has meant we are no longer physically able to travel the world as we once did, Delisio lets your tastebuds travel in style. As well as the new pack design Delisio is increasing its flavour range across both Sharing Bags and Multipacks to bring unique flavour experiences to Kiwis.” Key claims front of pack: • Cooked in Sunflower Oil • Proudly made in New Zealand • No artificial colours, no artificial flavours, no added preservatives • Less than 100 calories per serve (Multipacks only) Delisio pack and flavour range: • Sharing Bags: English Deli Style Sea Salt, Thai Style Sweet Chilli Relish, Tuscan Style Caramelised Onion & Balsamic, British Style Prawn Cocktail (new) • Limited Edition Sharing Bags: American Style BBQ Ribs (exclusive to Foodstuffs), Italian Style Margherita Pizza (exclusive to Countdown) • Multipacks: Thai Style Sweet Chili Relish, Tuscan Style Caramelised Onion & Balsamic Order yours today from Bluebird Foods. If you are a new customer, you can call us on 0800 652 583.

[ news ]

PEPSICO ANZ NAMED A TOP EMPLOYER PepsiCo has been recognised as a Top Employer in Australia and New Zealand for the second year running. Awarded by the Top Employers Institute, the company received the certification due to its dedication in creating meaningful opportunities for its associates to gain new skills, have an impact, and build successful careers in a diverse and inclusive workplace. Anita Patrick, Senior HR Director PepsiCo ANZ, said they are proud to receive this prestigious recognition from the Top Employer Institute again. “Flexibility is embedded into PepsiCo ANZ’s culture: we know that our company can only succeed when our people are given the space to flourish. We are committed to fostering an adaptable workplace that provides our employees with meaningful opportunities to work, upskill, and build long-term careers.” Certifications are offered by the institute

Kyle Faulconer joins PepsiCo as the new CEO for Australia and New Zealand.

based on the results of organisation’s HR Best Practices Survey. The survey covers six HR domains, consisting of 20 topics including work environment, talent acquisition, diversity and inclusion, well-being, people strategy, learning, and more. David Plink, CEO Top Employers Institute, said PepsiCo has continued to show that it prioritises maintaining excellent people practices in the workplace. “They continue to meet the challenges of the changing world of work while working tirelessly to make a positive impact on the lives of their workforce. We are pleased to celebrate and applaud the organisations that have been certified as Top Employers in their respective countries this year.” PepsiCo has also announced the appointment of Kyle Faulconer to the role of CEO for Australia and New Zealand.

[ tech ]

WIRELESS MAGNETIC FAST CHARGING FOR ALL DEVICES Technology is forever changing and advancing; we all live with a supercomputer in our pocket these days. These new devices, on top of having amazing apps and cameras, are power hungry. Everyone needs power and whilst traditional chargers still do the job there is an emphasis on charging quickly. There are two different ways this faster charging can be delivered, via a plugged-in cable charge or wireless charging. Walkntalk’s traditional plugged-in cable range (walkntalk fast-charge) delivers both QC (Android and Samsung format) and Power Delivery (Apple format) fast-charging via cable. This is reliable and, of course, fast. We knew there had to be a way to add convenience to charging. We have introduced MAG CHARGE, wireless magnetic fast charging. Most products in the market only deliver one device focus (either Apple or Android) but the walkntalk MAG CHARGE offers a technology that works with any wireless charging device. Don’t have the latest model with Magnetic charging, but do have a wireless charging compatible device?

Walkntalk MAGCHARGE products include an adapter that can be stuck to your phone to take advantage of this combined wireless fastcharging and mounting technology. One of the feature products in this range is a MAGCHARGE Car cradle. This product delivers magnetic wireless fast-charging in the car, but also features a central charging pad that can be removed at the touch of a button and used on a desk or bedside for added value. The mounting mechanism combines a traditional vent clip with a stabilising pad to ensure a secure attachment to your car whilst the strong magnetic hold of the charging pad ensures your phone stays in place even under the most dynamic driving conditions. If you live with a supercomputer in your hands under constant use, and could take advantage of seamless and wireless fastcharging, then MAG CHARGE is the evolution you have been waiting for. For more information, please contact us at www.signaturenz.com or email sales@signaturenz.com FMCG BUSINESS - FEBRUARY 2022

[ fresh produce ]

BEST IN SEASON With schools heading back and the year beginning in earnest, shoppers will be seeking out easy, healthy lunchbox favourites such as summerfruit, which are in plentiful supply. Berries are still in season, the last of the strawberry crop along with juicy blueberries, and the bright tones of blackberries and raspberries will make for a colourful, tempting display in the fruit aisle. Cooling down on scorching hot late summer days calls for melons, the tasty trio of rock melon, honeydew melon and watermelon are all at their prime this month.

expected in stores between February and April, as well as ongoing supply through until September. Storage/handling: Store at room temperature. The strong outer skin of the fruit keeps its contents fresh for several weeks. What to look for: Passionfruit are at their ripest when the smooth purple skin starts to wrinkle. Look for skin that is unblemished and – if still firm, allow to ripen a little more for added sweetness. Nutrition: Passionfruit are a good source of dietary fibre, and a source of Vitamins C and E.

Courgettes

“COURGETTES PROVIDE A GOOD SOURCE OF VITAMIN C, WHICH HELPS THE BODY ABSORB IRON FROM FOOD AND SUPPORTS IMMUNITY.”

Making an appearance on BBQs up and down the country, the fresh taste of grilled courgettes is a summer staple. Sometimes known as Zucchini due to their origins in Italy, courgettes are a well-known and versatile Mediterranean vegetable, perfect for a huge range of dishes from stir fries and salads through to cakes and breads. Courgettes grow best in warm soils in regions with high sunshine hours. Most of the commercial production in New Zealand is in Horowhenua followed by Northland then Nelson with both the traditional green courgettes and a small number of the yellow variety accounting for the annual crop.

What to look for Courgettes are at their best when about 16-20 cm long. Fresh courgettes will be firm with bright and shiny, dark green, or vivid yellow skin. Storage/handling: To maximise their shelf-life, store dry courgettes in the refrigerator and use within a couple of days. Nutrition: Courgettes provide a good source of Vitamin C, which helps the body absorb iron from food and supports immunity.

Passionfruit The sub-tropical passionfruit is a Kiwi favourite, perfect just scooped out and eaten as is or added to a wide range of sweet and savoury dishes. A popular addition to lunchboxes as kids return to school in February, passionfruit are at their most fragrant and sweet at this time of year. All of the passionfruit sold in New Zealand is grown here with the majority of the crop coming from Northland, the Bay of Plenty and Nelson. The 2022 season is looking like another great harvest with plenty of passionfruit 10

FMCG BUSINESS - FEBRUARY 2022

Sweetcorn Sweetcorn is a true summer vegetable, at its sweetest after a long hot few months, with the crop at its best between January and April. Super sweet varieties have become the most popular, with Honey ‘n’ Pearl the most widely grown here in New Zealand. Storage/handling: Sweetcorn is highly perishable so only buy quantities that can be sold quickly. Store at 0°C with a relative humidity of 90%100%. Sweetcorn is ethylene sensitive so store them separately from ethylene-producing fruit and vegetables. Display under refrigeration but don’t remove the husks (except for perhaps one or two on display) as they provide good protection from dirt and dehydration. Can be pre-packed in plastic bags. What to look for: Choose sweetcorn with fresh green husks and soft yellow to light brown tassels – the darker the tassels, the riper the sweet corn. The kernels should be plump, pale and tightly arranged. Nutrition: Sweetcorn is a good source of fibre as well as being high in B Vitamins.

Join us on

www.unitedfresh.co.nz

2022 S P O N S O R E D

B Y

J A M E S

W E L L S

[ FMCG Leaders Forum ]

THE REPORT TO OVERSHADOW THEM ALL 2022 has all the makings of a Woolworths NZ to supply other watershed year for the food and retailers at a wholesale level on fair grocery sector. terms and at competitive prices. There’s no doubt the arrival of But it was the Commission’s Omicron will demand we’re on full “possible last resort” that caused most alert, and at the time of writing there surprise: structurally separating the were already signs of panic buying in wholesale and retail businesses of supermarkets stretching the supply the two retailers. On a par with that chain. Couple that with the likelihood were recommendations enabling entry infected staff will be forced to isolate, by other major retailers, including adding even further pressure on the possible government sponsorship of supply chain, and we’re likely to be in a new entry, or requiring the major for a very demanding next few months. retailers to sell some of their stores to Through all this, there have been create a third big retailer. learnings from the lockdowns and These issues were explored in subsequent changes in consumer depth during the Commission’s online trends the sector is already taking on conference, and it will be fascinating board, and which we will see more of to see if they make the final version. as the year progresses. An indication came in Commerce IRI’s State of the Industry 2021 Minister David Clark’s response to report identified some of those, the draft findings when he said they including the huge rise in online “indicate that there are problems in shopping (up 40% in two years), the the market and that New Zealanders trend to more “functional” (health) would get better prices, ranges Chief Executive foods and ready to heat/eat meals, and and quality if there was increased NZ Food & Grocery Council consumers’ demand for brands to be competition in the grocery sector.” more sustainable. The rise in online is I’m quietly confident the interesting. IRI said such has been the recommendations to make the cut increase that stores not offering it risk will be those around the power being outpaced by their competition. imbalance between supermarkets Sustainability also will be a big and suppliers, including the issue. Food & Grocery Council introduction of an industry Code members are leading the way, with of Conduct for supermarkets. many brands setting their own While a Code will still preserve targets for packaging recyclability and competition, intended provisions reducing waste. will certainly ensure improvements For most of last year, shortages to some of the worst behaviours of global shipping and containers caused supply issues with imported suppliers have reported over the years. products and ingredients, and though that won’t be solved in a hurry, by During the conference, both major retailers agreed to support a year’s end we expect we will be closer to normal. Code similar to those in Australia and the UK. They include principles Apart from Omicron, the other big issue will be the Commerce of fair dealing, no payments for shelf position or theft or shrinkage, no Commission’s final report on its Grocery Market Study, due to be obligation to pay for marketing costs, no product deletions (except on delivered on 8 March. commercial grounds), and no pressure to hand over intellectual property It’s fair to say some of the recommendations of the draft last July for private label. Without doubt, a Code will improve the business surprised, in particular those aimed at improving conditions for entry culture and the treatment of suppliers, particularly at store level. and expansion by potential competitors by way of increasing access Because we all agree we need one, and have two models to work to wholesale supply. Options included requiring Foodstuffs and from, there’s no reason we can’t start early in the year.

Katherine Rich

“NEW ZEALANDERS WOULD GET BETTER PRICES, RANGES AND QUALITY IF THERE WAS INCREASED COMPETITION IN THE GROCERY SECTOR”

FMCG BUSINESS - LEADERS FORUM 2022

[ FMCG Leaders Forum ]

THE DYNAMIC APPROACH “WE CAN LOOK FORWARD TO CONTINUED GROWTH AND INNOVATION AROUND EVENING MEAL SOLUTIONS, AS WELL AS HOME-HEALTH BASED PRODUCTS THAT DELIVER MULTIPLE BENEFITS.” positioned, ensuring you are not stuck in middle ground between value seekers and those heading towards premiumisation. And don’t forget the detail; use analytical tools to test your elasticity versus that of your competing product sets, finding your upper and lower threshold limits.

2. Sustained growth in omnichannel

Craig Irwin Managing Director – New Zealand & Hong Kong IRI

When considering what 2022 holds in store, I would advise you don’t believe all the headlines you read. The past two years have been a rollercoaster for sure, but many of the extreme predictions on Covid – be they case numbers or economic impact – have been some way off. Of course, there is no doubt NZ Inc has suffered, with those in the hospitality and tourism sectors particularly taking a hit, especially in Auckland. We are also seeing the continuing bifurcation of the ‘haves’ and ‘have-nots’, a troubling trend that is creating interesting dynamics in the realm of in-store purchase drivers. However, in 2022 we can expect recovery, albeit a more cautiously-led one than the bounce experienced after our 2021 Covid dip. With this in mind, my three market dynamics to embrace for the coming year are:

1. Proactive price management Most economists predict inflation will remain high throughout 2022. In the world of FMCG, this is fueled by on-going supply chain challenges (an issue unlikely to be resolved until 2023), rising wages and, as a consequence, increasing input costs. Consumers are expected to become savvier over the next 12 months, as soaring interest rates herald more cautious spending. It will therefore be critical to proactively manage pricing to avoid or minimise significant margin erosion. Take a good look at pack/price architecture to establish where your business may be leaving value on the table. Think about where your products are

Digital purchasing continues to accelerate, and the drift to online grocery shopping in New Zealand is showing no signs of slowing, with penetration as high as 13% at Countdown. A significant number of spending missions are also starting online, even if they don’t end there. It is therefore critical to ensure your omnichannel game is tight. How do your products and brands feature on key retail sites? Is your digital shelf as strong as your physical shelf? Do your product descriptions easily direct consumers to your products first? Are differentiators, such as hypoallergenic or gluten-free, clearly signalled? What is your online investment strategy? Consider whether it is time for an eCommerce health check.

3. Enduring appeal of flexible working and convenience Just as the move to online shopping is not going to be reversed, the significant shifts we have made to our flexible working arrangements are here to stay. This will have a lasting impact on what is in the grocery basket each week. Consumers are likely to eat more meals at home on weekdays, particularly lunches and breakfasts, meaning those who help create convenient and tasty meal solutions could unlock real growth. Expect a continued appetite for bringing the café experience home – with resulting expansion in products like premium coffee, including pods, as well as key bakery items. Add to this the on-going desire for more convenient options that create precious time in hectic lives, and we can look forward to continued growth and innovation around evening meal solutions, as well as home-health based products that deliver multiple benefits. Clearly 2022 will be far from straightforward. However, as we learn to live and trade in the shadow of a pandemic, we also need to be ready for the short and long term impacts it has brought. So, get on top of your price management program, invest in the digital journey, and respond to consumer shifts, such as the move to flexible working. With the right approach, we can head into the coming months with optimism. FMCG BUSINESS - LEADERS FORUM 2022

[ FMCG Leaders Forum ]

OUR JOURNEY TOWARDS BECOMING ONE OF THE MOST CUSTOMER-DRIVEN RETAILERS IN THE WORLD

Chris Quin CEO Foodstuffs North Island

2021 was tough for all in our industry and while there have been some huge challenges, we’ve been proud and privileged to play a role in supporting New Zealanders. From keeping our teams and customers safe, to protecting our supply chain, keeping stock on-shelf, and supporting the communities we serve through our social promises - as we all dealt with the arrival of Delta. I think 2022 is likely to be another big year for New Zealanders as we find ways to live with the constantly evolving COVID-19 situation in what I’ve heard pretty accurately described as an ongoing game of Snakes & Ladders. What’s struck me over the last couple of years is the extraordinary drive and resilience of the industry and our co-operative - and at the heart of this is 24,000 extraordinary people all playing their part. Not only keeping us in food and grocery essentials during 2021 but achieving so much more than that. In 2022 we’ll continue to constructively engage with the Commerce Commission and industry throughout their enquiry into the grocery sector. In our submission on the draft market study report, we outlined a substantial Action Plan that we believe will collectively drive better outcomes for customers and improve the competitive landscape. This Action Plan is focused on three core areas: meaningfully improving value for customers, developing a grocery code for the industry and improving the competitive landscape. While many of our challenges are outside of the co-op’s control, we’ll maintain laser focus on what we can, by continuing our dedication and 14

FMCG BUSINESS - LEADERS FORUM 2022

“2022 IS LIKELY TO BE ANOTHER BIG YEAR FOR NEW ZEALANDERS AS WE FIND WAYS TO LIVE WITH THE CONSTANTLY EVOLVING COVID-19 SITUATION” journey towards becoming one of the most customer driven retailers in the world: • I’m determined that we start every conversation with facts, insight and understanding about our shoppers, so we deliver for them each time. • We’ll make meaningful change, and we’ll make it faster. Every week we have more than 2.1million customer visits across five generations of New Zealanders who come through our stores, and their needs are changing faster than ever before, we need to anticipate and commit. • We’ll be more digitally driven. Our shoppers’ behaviour has changed and the shopping journey more often than not starts outside the store doors in 2022, so we need to make sure we’re set up to meet their needs online, as well as in-store. There are a few very cool online innovations on the cards in 2022, but I can’t share the detail right now. Sorry! • We’ll work to bring the best out of our 25,000 Foodies. COVID-19 has proven that we have the strongest retail team possible, they are the key to reaching our aspirations and goals. We’ll also be keeping and building on our commitment to be HereforNZ through our social promises: supporting communities to thrive, providing access to healthy affordable food, meaningful work for our people and being leaders in sustainability. It’s our 100th birthday in 2022, I’m looking forward to it, I’m keen to get back to doing more of the things we love. It’s a momentous occasion to turn 100 and I want to thank our hard-working teams who helped us reach this incredible milestone. Whatever comes our way I’m pretty sure 2022 will be a great one to remember!

[ FMCG Leaders Forum ]

PARTNERSHIPS AND CUSTOMERS WILL CONTINUE TO SHAPE OUR JOURNEY

Mary Devine CEO Foodstuffs South Island

There is no doubt the past two years have been challenging for the retail sector. No matter the category, we have all adapted our retail businesses to accommodate the changing requirements of our customers and the way they want to shop whilst managing the complexity of supply chain disruptions. The accelerator through the pandemic has been ecommerce. However, as we move forward the emphasis will become one of omni-channel retailing and data driven insights to provide exceptional customer experiences in an increasingly digital-first world. When I reflect on this for Foodstuffs South Island there are two key themes that come to the forefront that will continue to shape our journey into 2022 – ‘Partnerships’ and ‘Customers’. Partnerships with suppliers, whilst always integral to the success for FSSI, will move to another level. Working together will be essential to handle the ongoing supply chain challenges brought about by Covid-19 that we will continue to face through 2022. How we navigate escalating costs and the impact of inflation whilst ensuring we offer value for our customers will also require commitment across the supply chain. Secondly, the opportunity to integrate customer rich data to inform and guide our supply partners on optimising ranging decisions will be beneficial for all. My love of retail is underpinned by a desire to provide great customer

experiences. This will increasingly come to the fore in the years ahead. Whilst FSSI is early on the journey of on-line retailing, this will accelerate through 2022 as we focus on truly providing an omni-channel experience for our customers. Understanding the customer journey and how to be relevant in the moments that matter will be pivotal. Bricks and mortar retail remains integral, but the in-store experience will certainly be more digital than it is now. Providing experiences to differentiate is key, and we know there will likely be continued focus on healthier eating, convenient meal solutions, and supporting local. I am excited about the numerous innovative solutions that are currently in play for the Foodstuffs portfolio of brands. Customer insights will increasingly inform our brand execution across channels to enhance personalisation. The building blocks are well advanced, and I’m genuinely excited about the positive impact that this will have for our customers throughout 2022. Personally, I also reflect on the importance of leadership in sustainability. As a retailer we have a key role to play, and it has been pleasing to hear in the supplier briefings to date the level of activity and ownership at play. As a leading South Island business, we know sustainability leadership is imperative and I look forward to an active involvement to further advance this agenda for the business. At the heart of all retail businesses in this complex environment is our people. The resilience shown by our team over the past year has been truly heartening. The continued success of FSSI will be built on the talent and empowerment of our people and I very much look forward to being part of the team as we head into 2022.

“WORKING TOGETHER WILL BE ESSENTIAL TO HANDLE THE ONGOING SUPPLY CHAIN CHALLENGES BROUGHT ABOUT BY COVID-19”

FMCG BUSINESS - LEADERS FORUM 2022

[ FMCG Leaders Forum ]

TIME TO UP YOUR GLOBAL IP STRATEGY FOR 2022? The FMCG industry provides a challenging market when it comes to Intellectual Property Rights. As it is one of the most crowded and competitive markets, it has become crucial for FMCG companies to use IP Rights intelligently to achieve sustainable growth, profitability, and competitiveness. We have seen a firm shift from reacting to the COVID-19 pandemic crisis to reinventing products and services as a result. FMCG companies have also been forced to be innovative to keep up with changing consumer demands. From an IP point Associate of view, that means several James & Wells steps must be taken to prepare companies dealing with these changes. The first step requires the organisation to identify, capture, organise and protect their IP, such as trademarks, patents, designs and trade secrets. Having a professional IP Audit is extremely useful, especially where IP has been developed haphazardly over time. This protection of IP Rights is not only good risk and compliance management, it can also help set the tone from the top down, creating a positive “IP culture” for the organisation. In the new product development phase, if there is anything novel being created from scratch, then it pays to discuss this with an IP professional before anything is disclosed further within the company or promoted. This is where non-disclosure agreements and confidentiality clauses within staff employment agreements come in handy, making sure that employees who are working on any confidential new product development don’t subsequently share this knowledge, or outsiders

must use and exploit. It pays to consider the overall brand strategy early on – making sure the trade mark is in fact available to use in the markets where you intend on promoting it, and then taking targeted steps to ensuring you can protect and legally own the trade mark in those markets. Companies considering exporting are well advised to develop a global IP strategy that dovetails with their business strategy. Often businesses try to register in many different jurisdictions to secure their trade mark reactively, or without actually considering how this fits within the long term business strategy. Being strategic about the where and how can not only save you money, it can provide you with a better and more expedient outcome. Free trade agreements between New Zealand, the UK and Europe are likely to bring a positive spin for exporters beyond 2022, so it pays for consumer goods companies to consider these markets now in their global IP strategy. A UK trade mark registration protects your rights in England, Wales, Scotland and Northern Ireland. An EU trade mark registration protects your rights in the 27 member countries of the EU (excluding the UK), making it the mark of choice for many businesses who currently trade abroad, or who plan to expand into Europe. Both UK and EU Trademarks are registered on a first come first served basis, and in a straightforward scenario can take approximately 5-6 months to register in the UK, or longer in the case of the EU. Although trade marks are largely handled in the same way under both systems, there are some differences, which can be important from a strategy viewpoint, so it pays to seek the advice of an IP professional when considering this. Overall, 2022 should be the year that you properly consider the strategy behind your IP protection, so that you can take advantage of future opportunities as they arise and enable good risk management.

Stephanie Hadley

“2022 SHOULD BE THE YEAR THAT YOU PROPERLY CONSIDER THE STRATEGY BEHIND YOUR IP PROTECTION”

who are also working on the project (such as a contract manufacturer), don’t do the same. In the commercialisation and marketing phase, a product’s brand is generally the most visible and long-lasting IP right that companies 16

FMCG BUSINESS - LEADERS FORUM 2022

IP protection, simplified. We’ve been championing innovation since 1979. A safe pair of hands delivering outstanding results.

m wells.co jamesandwells.com mesand www.ja

[ FMCG Leaders Forum ]

INNOVATION AND SUSTAINABILITY - MEETING OUR CUSTOMERS WHERE THEY ARE “WE’VE BECOME MORE AGILE AND ADAPTABLE AS A BUSINESS AND HAVE DEVELOPED EVEN STRONGER RELATIONSHIPS WITH OUR SUPPLIERS AND SUPPLY CHAIN PARTNERS”

Spencer Sonn Managing Director Countdown Thanks to COVID-19, it’s been a challenging couple of years for Kiwis. Supermarkets have been at the forefront of not only providing consistency, but often the only form of social interaction for many people during uncertain times. While keeping our team and customers safe in our stores and navigating global freight and supply chain challenges have been a priority, we haven’t taken our eye off the ball when it comes to planning for the future. Whether it’s looking at what’s important to our customers, understanding emerging local and global food trends, meeting our 2025 Sustainability Commitments, and continuing to innovate - we’ve continued to focus on what needs to be done to meet the needs of a changing Aotearoa. This year we celebrate the 25th birthday of Countdown’s online shopping service, which first launched back in 1996. What started with customers placing their order by floppy disc has since become a very different proposition! Our digital economy is driving a huge demand for the ease and efficiency of online shopping. To meet that growing demand we’re continually investing in our digital and e-commerce capabilities and have been actively expanding our network capacity with dedicated eStores in Auckland, Wellington and Christchurch. This additional infrastructure investment will ensure we can continue to provide a great online shopping experience well into the future. Kiwis are increasingly wanting to make their shopping choices as convenient and also as sustainable as possible. Since launching our 2025 Sustainability Plan in late 2020, we’re continuing to take bold steps towards meeting the ambitious commitments we’ve set out to achieve, which include further reducing our emissions, sending zero food waste to landfill from our stores and making sure our own brand 18

FMCG BUSINESS - LEADERS FORUM 2022

product packaging is recyclable or reusable by 2025. In our own brand products alone, we removed more than 16 tonnes of virgin plastic packaging, reduced our emissions by 9%, and diverted more than 7,000 tonnes of food waste from landfill in the last financial year. As much as we’ve done, we know there is much more to do and so our work will continue throughout 2022. But the focus on sustainability doesn’t stop with our own efforts we’re also seeing our customers’ lifestyles reflected more broadly in their supermarket shopping, with the desire to make healthier and more sustainable choices intersecting with the need for convenience and ‘one stop’ shopping. To meet this demand in 2022, we’ll be growing some of our lifestyle offerings including: • Expanded ranges in home improvement, gardencare and homewares and introducing home fitness equipment. • Making more healthy and convenient choices available by expanding our range of healthy pre-prepared meals and meal kits, sugar-free beverages, and vegan and vegetarian ranges. • Continuing to grow the range of good quality options available on our shelves in our plant-based categories, like milks, yoghurts and meat alternatives as we see more of our customers adopt planet-friendly diets. • Expanding our own brand range of products, which were recently ranked the healthiest in Australia for the third year in a row and display a health star rating making it easier for Kiwis to make healthier choices. • Extending our cleaning and laundry concentrates range to drive a reduction in the need for plastic packaging and the unnecessary global freighting of water. • We’ll also continue to improve our fresh offering through the opening of a new fresh food distribution centre at Wiri in mid-2022. This will bring all of our produce operations into one location with a Green Star rated, state of the art temperature-controlled distribution centre, produce packhouse, ripening rooms and space to receive and store imports, providing the best care and quality for our growers and customers. Thanks to the experience we’ve gained over the last two years, we’ve become more agile and adaptable as a business and have developed even stronger relationships with our suppliers and supply chain partners. This year may not be the end of global uncertainty, but we’re more than prepared to tackle any COVID challenges that come our way and ready to meet the needs of Kiwis in 2022 and beyond.

[ FMCG Leaders Forum ]

NAVIGATING THE INCREASED DEMANDS ON OUR CONSUMERS

Lance Dobson Market Lead NielsenIQ NZ

As 2021 came to a close, the impact of the pandemic on the FMCG industry in New Zealand led to the emergence of new consumer trends and dynamics. As we enter the new year, consumers will continue to face pressure on spending owing to continued uncertainty and a high inflationary landscape. These factors combined indicate that challenges for suppliers and retailers will continue through the coming months. In NielsenIQ’s latest Retail Barometer survey, 60% of suppliers indicated they expect business conditions to deteriorate in 2022, due to a high cost of raw materials and flow of shipping - concerns that are also echoed globally. In 2021 FMCG sales across Grocery, Traditional Liquor, Oil & Convenience and Pharmacy hit nearly $21bn, an increase of $2.3bn vs 2 years ago, driven by COVID lockdowns and channel switching. This growth is two-fold, whilst we are seeing increased volumes, price inflation as we enter a new high inflationary environment, leads to implications on both short and long-term pricing decisions. Our latest Homescan Panel survey tells us that shoppers’ key motivators of store choice are value for money, low prices, good deals and promotions. Additionally, in the recent COVID environment, shoppers are maximizing each trip to the store, so stores having a good range, what shoppers want in stock and easy to find products as they look for ease and convenience become more important. These motivators offer several new consumer-led implications for growth, including a move to online and the economic polarisation of shoppers. The digital revolution and move to online is shifting the retailer landscape. Online is driving significant growth to the overall market and

is contributing 50% of overall growth. Habitual online shoppers are also switching more of their spend online, 61% of their supermarket spend is now online, +7 pts from last year. As shoppers become more engaged with online shopping, they will become smarter, looking for specific products and comparing price points making it a more competitive space. Key to ongoing loyalty is a platform that satisfies shoppers’ needs by providing the best experience possible. Retailer investments into their online offering becomes critical in achieving that shopper satisfaction. The economic polarisation of shoppers has seen the forming of distinct groups of Insulated and Constrained consumers with new implications for growth. We are seeing more people affected by Covid with 27% of households now experiencing a worsening financial situation as a direct result of the pandemic. These ‘Newly Constrained’ households are consciously watching their spending and are pivoting into new ways to look after themselves with an increased focus on health and wellness, as they are most likely to have demands on their physical and mental health. Insulated Consumers make up 36% of households in NZ, with 19% telling us they are spending freely and have increased their spend on indulgent items. The insulated consumer group will pay a premium for products with compelling benefits or features, especially as many are replacing out of home experiences by replicating those occasions or entertaining at home. In closing, some recommendations for engaging your consumers when planning for 2022 and beyond. • Relieve pressure points for shoppers by setting clear strategies around pricing, promotions and pack price architecture. • Provide easy and affordable ways to be healthy to ease the pressures on constrained households. • Clearly articulate the features and benefits of premium products, especially around occasions and meal ideas. • Both retailers and brand owners should continue to drive growth for online shopping by providing the best experience possible, reliability and convenience cues are most important for shoppers. FMCG BUSINESS - LEADERS FORUM 2022

[ FMCG Leaders Forum ]

WHAT’S YOUR STORY? “THERE IS A CRAFT IN MAKING YOUR BRAND STORY ONE THAT PEOPLE WANT TO FOLLOW.”

FMCG BUSINESS - LEADERS FORUM 2022

[ FMCG Leaders Forum ]

Ingredients of a great story Eminent screenplay writer Robert McKee has mapped out the essential ingredients that make a compelling story. Adapting some of these principles, good brand stories need to consider:

Lew Bentley Lew Bentley Head of Strategy

Element

Definition

For Example

Genre

What is the type of story your brand is telling?

• Succeeding in difficult circumstances • Taking control of your family’s wellbeing • Indulging in a passion we share

Protagonist

Who is your brand as a 3-dimensional person; an archetype with living human values and its own distinct personality?

• A common person in touch with the realities of making ends meet • A trusted protector keeping the family safe • A fanatical challenger taking quality to the next level

Quest

What is the journey your brand is on?

• To make family budgets go further • To remove harm from everyday living with natural products • To seek perfection in what we make

Arc

How is your brand evolving over time?

• What is the backstory of your brand’s origin and evolution over the years? • What is your vision for the future?

Inciting incidents

How does your brand respond to events occurring in the market, or what is your brand doing proactively to create change

• How is your brand helping people cope with the COVID pandemic? • How is your brand helping people celebrate Christmas? • What has your brand done recently to get people excited?

Head of Strategy Shopper Marketing Agency Energi Shopper Marketing Agency Energi

Over the many years I’ve spent in the marketing world I’ve learnt that there is a lot of new money for old rope. Every few years a shiny new thing arrives that carries big promises of a break-through in thinking that supposedly changes the world. People-centred design was a revolution in its telling that claimed to actually consider people in the design of things. Scratch the surface and you find good old qualitative research with Post-It notes. There was a huge kerfuffle in brand strategy when people discovered Simon Sinek’s TED talk on his Golden Circles model. Grounding your brand on a “Why?”, or brand purpose, suddenly raised cries of “eureka!”. How had businesses managed to survive without knowing why they are there in the first place? There is also the ongoing debate about the importance of creativity in communication. To my way of thinking this is a bit like the axiomatic argument that food is better if it tastes good. Another topic du jour that has grown in prominence in recent times is storytelling. Two main practical drivers have swept storytelling to prominence:

1. Content marketing The growth in content requirements as marketers have increased their investment in digital marketing. Websites, blogs, customer emails and social media all need content to fill their posts with.

2. Differentiation With the proliferation of competition in most categories it is harder and harder to achieve sustainable differentiation with products. However, one thing that a brand can own is its story. There is also a deeper, more fundamental role that brand storytelling plays in marketing. Pretty much all products, whether they are FMCG, durables or services tend to be inert per se. They are things. Marketing’s job is to create demand by making those things desirable to people. To do this we use brands as a way to attach human values to products in order to make them more relatable and appealing. This works because human behaviour is driven mostly by instincts and emotions rather than cold rational thought. People are hard-wired to relate empathetically to stories about emotions and the human experience.

Consequently, a brand story is a means of wrapping human values up in an ownable narrative designed to cultivate sustainable attraction. In this way: A product + human values in the form of a compelling brand story = a more desirable product = the source of enduring demand = something worth paying a premium for. Whittaker’s is a great story of pioneering dedication to chocolate perfection that trumps Cadbury’s global giant status. Lewis Road Creamery has been satisfying foodies with beautiful products made the way they are meant to be made - before industrial compromise took over. Essano is a great success story of providing premium pharmacy and salon products at grocery prices. There is a craft in making your brand story one that people want to follow. It is not just a matter of haranguing people about your product and its features. We’ve all met people like that. Great brand stories draw you in to a tale of passionately believing in something and pursuing it with purpose, authenticity and flair. They are stories about brands you want to have in your life and what you choose to prefer over alternatives. Great brand stories that you buy into leave a residue on your own story as a person. What do the brands you love say about you? FMCG BUSINESS - LEADERS FORUM 2022

[ FMCG Leaders Forum ]

UNDERSTANDING ‘PEAK MEAT’ AND SUSTAINABLE DINING

Catherine Beard Director Advocacy Business New Zealand

While New Zealand looks to be reaching peak meat consumption, a more conscious kind of meat-eater is on the rise. The impact of these two factors is important to understand in 2022 and beyond. Countries the world over have been in a rolling state of lockdown since 2020, and New Zealand is no longer the exception. The twenties are off to a rather introspective start so far. People have had their day-to-day lives profoundly disrupted, allowing themselves to slow down a bit and really consider the impact their consumer habits are having. The trend of “reducetarianism” was alive well before the pandemic, but since we first learned of Covid-19, we’ve seen increased sentiment toward more sustainable dining practices. The pandemic shared the spotlight with another top story in 2021 – climate change (or more specifically climate action). As such, sustainability is on consumers’ minds when choosing what to eat. Consumers are branching out in favour of more adventurous and often more sustainable options that not only taste good, but leave their conscience feeling lighter too. You may have heard more people talking about the likes of “meatless Mondays”, which are becoming more popular among the traditional meat-and-three-veg crowd. There 22

FMCG BUSINESS - LEADERS FORUM 2022

are signs that point to New Zealand bucking global trends and achieving peak-meat consumption in the near future. Our consumption habits in the 21st century show Kiwis decreased their average meat intake by about 10 kilos between 2000 and 2019. New Zealand appears to be one of few countries trending this way currently (other western countries include Canada and Switzerland), but as the world looks toward more sustainable ways of living, other developed countries could follow suit. The rise of alternative sources of protein is making the move to a meatless diet easier than before. We are seeing many more options and substitutes in the supermarket chiller. These come in the form of plant-based, lab grown or (to a lesser extent) novel sources like crickets and other insects. So, what might this all mean for our meat producers and exporters? With changing diets and more innovation in meat and its substitutes – it does mean New Zealand’s industry faces new competition. But I believe there will continue to be a strong market for New Zealand grass-fed meat going forward. We are one of the most greenhouse gas-efficient producers of red meat in the world, which gives us an edge in a market where consumers are conscious of what and where they get their protein from. Relative to our international competitors, New Zealand producers do a great job when it comes to sustainable practices and reducing carbon. It’s also important to remember that while New Zealand is one of few countries nearing peak consumption, some countries’ meat-eating habits are still growing. Differences in the diets of people from developed and developing nations make this clear. While there may be a decline in the consumption of meat in developed countries, we understand meat consumption increases in developing nations as their middle class grows. So, if you are a New Zealand meat producer or exporter with sustainable practices in place, keep doing what you’re doing. There will always be a market for the real thing – it’s may just be a matter of putting our greenest foot forward.

The rise of alternative sources of protein is making the move to a meatless diet easier than before

“THE PANDEMIC SHARED THE SPOTLIGHT WITH ANOTHER TOP STORY IN 2021 – CLIMATE CHANGE”

MARKETING SUMMIT Ellerslie Racecourse, Auckland

NETW ES DA

STAY AHEAD OF THE GAME IN NZ’S FAST-MOVING GROCERY AND RETAIL SECTORS Elevate your FMCG brand with presentations from recognised industry experts, Q&A panel discussions and valuable networking opportunities. Hear from key speakers and industry experts including

KATHERINE RICH New Zealand Food and Grocery Council

MORGAN MCCANN New World Foodstuffs North Island

LARISSA WATSON NielsenIQ * Program subject to change

Rescheduled date

Thursday 1st September 2022 Ellerslie Events Centre, Auckland

www.fmcgsummit.co.nz SPONSORED BY

BREAD WINNERS What’s new and driving sales in the popular bread category?

With the Kiwi summer in full swing, now is the perfect time to embrace the fresh and wonderful New Zealand produce and there is no better way to elevate this experience than wrapping it inside a delicious Farrah’s Wrap or Tortilla. Michelle Mourits, Business Development Manager at Farrah’s explains: “consumers are getting inspiration from a variety of sources and looking for healthy products that are quick to prepare and suit the entire family’s needs. Not only is the Farrah’s range versatile for all meals of the day, but the ease and speed of preparation is a very popular attribute of our products. Consumers are seeking ‘better for you’ products and a great example of this is the explosion of plant-based alternatives. Farrah’s have embraced these trends through introducing a wrap with plant-based

FMCG BUSINESS - FEBRUARY 2022

protein sources derived from ingredients such as pea and hemp. Personal health also remains high on the list and consumers are looking at the benefit of functional ingredients such as super grains and how these can supplement their diets or strengthen their immunity.” Mourits adds: “Growth remains strong within dietary lifestyles, the likes of KETO and reduced carb alternatives are proving popular. Farrah’s have crafted a new range of Low Carb Wraps that cater to the growing popularity of keto and reduced carb diet trends. Farrah’s new range of Low Carb Wraps were launched in July 2021 and are the most successful NPD to have launched in the past two years in the Wrap category, (claiming the top three rankings for $ per store per week, ahead of all other wraps NPD launched in the timeframe). Understanding the fast moving and evolving expectation

[ category insights ]

“FARRAH’S WRAPS AND TORTILLAS ARE PROUDLY MADE IN NEW ZEALAND” of our consumers, embracing data and insights to craft new products that are meaningful and innovative are all key factors to the success of our NPD.” Farrah’s Wraps and Tortillas are proudly made in New Zealand, at their world class factory in Silverstream, Wellington. Farrah’s Wraps and Tortilla range are all Halal-certified and yeast free, with the three new Low Carb flavours also being vegan friendly and dairy free, suiting a range of dietary requirements. As we continue to enjoy the wonderful summer months, partaking in picnics, lake and beach trips, BBQ’s, day walks and hikes, which require fast, readyto-eat, on-the-go foods, let’s celebrate New Zealand’s summer and entertaining with the full range of Farrah’s products for a stress-free summer adventure. For more information and a range of inspiring recipes for you to try, visit http://www.farrahs.co.nz. For all orders, please contact your Twin representative.

AllergyWise Multiple allergies and intolerances are becoming more common for some individuals and families. For a consumer diagnosed with coeliac disease or gluten intolerance, the thought of giving up bread, alongside other foods, can be stressful. With AllergyWise™ products consumers can cater for singular and multiple allergy requirements with the same product. There is no need for additional or

BAKERY SMALLGOODS Dollars Total Bakery Smallgoods

Dollars Growth % YA

$183,123,824

11.5

Wraps

$42,635,752

16.1

Crumpets

$20,772,682

17.9

Hamburger

$20,573,104

5.4

Muffins

$19,838,276

1.6

Bagels

$15,289,496

18.4

Pita

$14,125,715

-1.3

Other Buns & Rolls

$11,774,098

12.4

Long Rolls

$8,531,698

7.1

Other Specialty Bread

$5,198,006

115.5

Ciabatta

$1,717,480

24.3

Tortilla

$1,293,896

-7.4

Turkish

$38,343

11.9

Panini

$10,248

-3.6

Source : IRI Market Edge Grocery MAT to 02/01/22 (Selected segments)

[ category insights ] extra varieties. AllergyWise™ products are produced in a separate, contained facility that is gluten free, egg free, dairy free, nut free, soy free and vegan. AllergyWise™ bread loaves are a full-sized loaf and look and taste like regular bread when heated or toasted. The range includes White Loaf, Brown Loaf, Seeded Loaf, Fruit Loaf, Turkish Pide, White Sticks, White Rolls, Brown Rolls, Seeded Rolls and Hamburger Buns. Dessert Kitchen, established in 2004, are the creators of the AllergyWise™ range. Dessert Kitchen is a member of the New Zealand Coeliac Society cross grain logo programme. Allergywise products are available in selected retailers throughout New Zealand. For more information contact info@ dessertkitchen.co.nz or visit www.allergywise.co.nz

Breadcraft’s innovation in the bakery and bread aisle changing how Kiwis think about bread Innovation is baked into the heart of an 80-year-old Wairarapa bakery, making some of New Zealand’s most delicious, healthy and nutrient-dense wraps and bread available in supermarkets.

Breadcraft baked its first loaf in Masterton in 1942. Eighty years later, its speciality brands Rebel Bakehouse and Cottage Lane are changing how people think about bread. Rebel Bakehouse’s dedication to catering for gluten-free consumers has seen it claim an 83% market share of the gluten-free wrap market in just two years. Its Low Carb Wrap (launched July 2021) is New Zealand’s lowest-carb wrap (per 100g) and carries a 5-star health rating. Cottage Lane makes it easy for store bakeries to serve customers delicious, natural and handcrafted stone-baked artisan bread. Using Breadcraft’s treasured 80-year-old starter bug, its sourdough bread is 26

FMCG BUSINESS - FEBRUARY 2022

fermented for 72 hours and can be baked off in store in under 25 minutes (after being delivered snap frozen). Kerrie Brown, Sales Manager for Breadcraft, says people are seeking out healthy and nutrient-dense foods to support their physical, mental and emotional wellbeing. “This trend has grown since Covid-19, whether people are seeking the comfort of traditional sourdough or looking to pack more into their busy lives. Our bakers seek and use alternative ingredients for our wraps including hemp, linseed, poppy, chia seeds, and quinoa – resulting in nutritious and delicious offerings for consumers,” she says. Alongside Cottage Lane’s new Turkish Bread, Rebel Bakehouse will also release new products in 2022, continuing Breadcraft’s makeover of the bakery and bread aisle. For more information on Rebel Bakehouse and Cottage Lane products visit: www.breadcraft.co.nz. For orders please contact your Alliance Sales Representative 09 280 2926

A story with full flavour A family-owned company of Mediterranean origins, Giannis Pita Bread rose from honest, humble beginnings to become one of New Zealand’s largest specialised flat bread manufacturers and a major supplier to the New Zealand food industry. It’s 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. 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. The Giannis brand was established in 1991 and continues to go from strength to strength 31 years later. Giannis produce and supply an extensive range of Pita Bread, Wraps, Pizza Bases, Tortilla and Naan

[ category insights ] bread products that are available in the New Zealand market, including gluten free options. “We are always looking closely at the market and consumer trends and will continue to develop new products to meet the market supported by an extensive marketing programme across Giannis social media platforms,” says Sales and Marketing Manager Simon Rangihaeata. 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 Giannis family will continue to run the business in 2022. For more background on the Giannis story go to www.giannis.co.nz For sales enquires contact Giannis Sales and Marketing Manager Simon Rangihaeata 021 854 091, simon@giannis.co.nz

BREADS Dollars

Dollars Growth % YA

Total Bread

$384,625,920

-1.5

Light Grain

$122,145,072

-0.8

White

$109,061,568

-1.7

Heavy Grain

$59,830,208

-1.6

Wheatmeal

$43,927,908

-7.8

Enriched

$18,964,296

22.1

Rye

$12,019,125

-5.3

Sourdough

$8,159,749

9.4

Fruit Bread

$5,501,946

-18.7

Health

$5,016,067

-12.7

$33,230,108

-0.3

Gluten Free Bread

Source : IRI Market Edge Grocery MAT to 02/01/22 (Selected segments)

“GIANNIS PRODUCE AND SUPPLY AN EXTENSIVE RANGE OF PITA BREAD, WRAPS, PIZZA BASES, TORTILLA AND NAAN BREAD” 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 data available at time of print. If you wish to contribute news for upcoming category reports, please contact trubanowski@intermedianz.co.nz Giannis-Trade-Ad-2020-11.pdf

6/11/20

12:24 PM

MADE IN

Giannis Breads are created from our own authentic Mediterranean family recipes using only the highest quality ingredients, making them...

New Zealand’s Favourite Flat Breads. Email: simon@giannis.co.nz www.giannis.co.nz

Honest food, made well.

FUNCTIONAL FOODS Kiwis are adopting a more holistic approach to their health and use a number of ways to boost their immune system, from exercising more, getting a good night’s sleep, to minimising their stress levels. They are also consciously seeking out healthier options to eat and drink with an increasing trend towards functional and plant-based foods. Debbie Simpson-Pudney, Head of Retail, Solutions & Innovation at IRI New Zealand revealed in a recent State of the Industry presentation that 64 % of household shoppers believe food can be as powerful as medicine and this is evident in the growth of foods with on-pack callouts, such as ‘immunity’ and ‘mental performance’. For example, Unilever has partnered with the gut microbiome experts at Holobiome this year to identify food and drink ingredients that could have a positive impact on mental wellbeing by targeting the gut-brain axis. There is increasing awareness of the importance of the gut microbiome – the trillions of microbes that live inside us – and the critical role it plays in our overall health and wellbeing. Many scientists now consider the gut microbiome an essential organ with 70% of the immune system existing in the gut, and 90% of the body’s mood elevating serotonin produced there. Functional ingredients will be prominent in many categories such as snacks and drinks this year. Here’s a quick snapshot of new, functional foods in our stores.

Chia Sisters’ functional beverages range flying Nelson based company Chia Sisters, a well-known leader in sustainability, has seen their revamped functional beverages fly since the relaunch in October. Chia Sisters General Manager Bonnie Slade says since the rebrand, 28

FMCG BUSINESS - FEBRUARY 2022

“IN SOME CASES, WE ARE SEEING 120% INCREASES IN SALES” CHIA SISTERS GENERAL MANAGER BONNIE SLADE

[ category insights ] sales for the functional range has increased. “In some cases, we are seeing 120% increases in sales. They’re definitely products consumers want.” Chia Sisters further proved their range by being awarded the Beverage Award at the 2021 NZ Food Awards for their Immunity Tonic. The tonic is made with Golden Bay Mānuka honey, lemons, ginger, and turmeric, and is packed full of vitamin c to help boost immunity. Developed in 2012, Chia Sisters was a first of its kind for functional beverages in New Zealand. Their original Chia drinks offer Gut Health, Brain Boost and Natural Energy variants and are a firm favourite among every day consumers looking for a nutritional boost in their day-to-day life. The Chia range is made with the natural goodness of magnesium, calcium, prebiotic fibre, plant omega 3 and electrolytes and their Superfood Smoothies also pack a punch with protein, iron and magnesium at the fore. “Our functional range is perfect for anyone wanting to stay healthy,” says Slade, “they boost immunity and improve quality of life. We call them nutritional powerhouses in a bottle, and they hit the mark for a daily dose of micronutrients.” The Chia Sisters’ functional range is available at Countdown, Fresh Choice, New World and PAK’nSAVE, and cafés and good food stores throughout New Zealand. For further information and to stock Chia Sisters, please contact Abbie Tebbutt Marketing & Relationships Manager at Chia Sisters: abbie@chia.co.nz and 027 6333 544.

Goju Shots Goju brings bottled health to New Zealanders in 60ml wellness shots – small, but potently healthy juice. Goju started out as two Kiwi siblings, Belle and Tom, wanting to challenge the status quo of New Zealand’s juice industry and fill a gap in our market with a product they saw booming overseas. Their mission is to take nature’s highest performing, nutritious ingredients and package them in a way that is accessible to time-poor Kiwis. The team explains: “We have prioritised ingredients that have functional health benefits, with each of our

five wellness shots hosting unique and defined benefits. The bottles are small, transportable and made to be taken on the Go - Go-Ju(ice) get it?” The team also want their shots to stand out against international competitors, explaining: “Our flagship Ginger and Turmeric shots are some of the strongest in the world. Ginger and Turmeric are the most common wellness shots flavours you see, but most only have about 15-20% of ginger and turmeric in each shot whereas ours have 50%. The black liquid of their Charcoal shot stands out in their lineup, which they say is “for detoxifying the system and when taken correctly, is an incredible hangover cure.” The team have also launched a new line of 500ml multi-dose bottles, bigger versions of their Ginger, Turmeric and Collagen shots. They said: “We believe our 500ml Collagen multi-dose bottle is a world first, we are yet to find another collagen product like it.” From modest beginnings at Farmers markets to New Zealand’s best supermarket shelves, Goju’s ambition is to go global with their super-strong, clean and effective wellness products. Sales enquiries: Tom Hartles - tom@gojushots.com Marketing enquiries: Belle Hartles belle@gojushots.com gojushots.com

Auckland tea specialist brews help ease pandemic stress A cup of tea has taken on a new meaning for people seeking natural ways to manage the stresses of Covid-19. The Tea Thief curates organic and sustainable teas from remote corners of the world, purchasing directly from farmers. They’ve recently released an online service that helps people find their own tea prescription, matching them with their perfect tea. Co-founder Ruth Wynne says demand is increasing for calming, anxiety-relieving, and immune-boosting teas. “People want a natural way to manage pandemic stress. Tickety-Brew is our top selling tea; it’s made from naturally blue, Butterfly Blue Pea flowers, lavender, and ginger. Known for its antiaging and calming properties, it also supports healthy cholesterol levels, good sleep, and brain health,” she says. FMCG BUSINESS - FEBRUARY 2022

[ category insights ] No stranger to health issues, having suffered from gut and inflammation issues since she was a teenager and then later dealing with anxiety and infertility, Ruth says her health journey led her to discover the powerful benefits found in teas and infusions around the world - and used as remedies in many different cultures for thousands of years. FUNCTIONAL DRINKS Dollars

Dollars Growth % YA

Kombucha

$29,585,422

Coconut Water

$10,847,231

6.2

Aloe Vera

$4,030,746

18.6

Functional Water

$2,710,354

55.7

Other Fermented

$1,056,977

34.7

$561,529

-35.9

$7,039,281

54.0

Kefir Collagen Milk Additives

9.3

Source : IRI Market Edge Grocery MAT to 02/01/22 (Selected segments)

“This is what led me to want to share this knowledge with others and is the philosophy The Tea Thief is based on. There are so many wonderful, healthy and beneficial teas worldwide, from ancient shamanic herbs to ayurvedic remedies. “If our personalised tea prescriptions can help ease some of the stresses people are facing, then we too can take something positive out of the current situation,” she says. To find your personal tea remedy, you can visit Apothecary in a Cup at www.theteathief.com

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 data available at time of print. If you wish to contribute news for upcoming category reports, please contact trubanowski@intermedianz.co.nz

LET’S CREATE BETTER FUNCTIONAL BEVERAGE SOLUTIONS, TOGETHER.

HAWKINS WATTS NEW ZEALAND

INGREDIENTS & SERVICES

SALES@HAWKINSWATTS.COM HAWKINS WATTS NEW ZEALAND HAWKINSWATTS.COM

TRENDS AND INSIGHTS BESPOKE BLENDING CONCEPT DEVELOPMENT

TEXTURE NUTRIENTS COLOUR FLAVOUR AND MORE

[ good business ]

SAY GOODBYE TO MISLEADING COUNTRY OF ORIGIN CLAIMS Soon you’ll see full country of origin labels for many fresh, thawed and frozen foods. New rules will require this information on fresh and thawed food from February 2022 and frozen food from May 2023. Businesses must clearly disclose on the item, product packaging, or signage near the product, the country or ocean in which the food was grown, raised, caught, or harvested. This is good news for consumers who currently have to take country of origin claims from food suppliers at face value. Take a ham, for example. At present, packaging could claim the ham is a product of New Zealand – but that pig could have been born, raised and slaughtered overseas, and only processed and packaged in New Zealand. The result is that some consumers may believe they’re supporting local, but not as much as they may think. Before these regulations take effect, country of origin food labelling has been voluntary in New Zealand (except for wine). The following foods will be required to disclose their country of origin: • Fruit • Vegetables • Meat • Finfish or Shellfish. • Cured Pork All of which meet certain criteria of being only one type, fresh, thawed or frozen, and no more than minimally processed. Any food that doesn’t fall into the above categories is not covered

by the new rules – for example, a mixed bag of frozen peas and corn, is more than one type of vegetable and is not included.

Penalties for breaking the rules There can be hefty fees for not following the rules: The Commerce Commission can issue an infringement notice to a business of up to $1000 per offence. For serious non-compliance, the courts can prosecute a company with a fine up to $30,000 for each offence. Individuals can be fined up to $10,000 for each offence. Source: https://www.consumer.org.nz/articles/say-goodbye-to-misleading-country-of-origin-claims

UCT OF THE OD YE PR A

Do you have a Hero product that stands out from the crowd?

•

•F M C

FMCG BUSINESS PRODUCT OF THE YEAR If there’s a tasty tastebud teaser, NPD rockstar, or best seller

‘Product Of The Year’ - we’d love to hear from you!

PRODUCT OF THE YEAR

•F M C

•

in your portfolio that deserves to be crowned We’ll showcase some of the finalists in upcoming issues and reveal the FMCG Business Product of the Year later in 2022.

UCT OF THE OD YE PR A

To find out more on how to enter please email: trubanowski@intermedianz.co.nz FMCG BUSINESS - FEBRUARY 2022

[ packaging & design ]

DESIRE FOR COMFORT & DELIGHT “A collection of creative ideas we expect to see more of in 2022, is influenced by ethical consumption and a desire for comfort and delight as we look ahead after two challenging years of lock downs and uncertainty,” says Janine Bickerton, General Manager, Marx Design Ltd. “Being green literally and figuratively will feature large – driven by a biophilic desire to reconnect with and eat closer to nature. Expect brands to lean into sustainability, encouraging their suppliers to come up with circular and innovative packaging solutions at the right price. We will see more refillables, upcycling, recycled materials, earthy palettes, natural materials, texture and visibility of good-looking product.” “We expect to see minimalism continue to be challenged by maximalism. The counter trend to pared back, simple graphics, muted colours and a clean aesthetic are attention-grabbing bold colours, rich

gradients, layered shapes and playful typography, incorporating a dreamy and magical sensibility with overtones of optimism and beauty. People want a good time right now and maximalism is here to give it to them.” “As borders slowly re-open and countries ease up travel restrictions, we are all dreaming of being able to travel again after a long and necessary period of staying home. And while nothing can quite compare to visiting places in person, expect 2022 to bring us plenty of packaging and branding to whisk us away. Escaping the real world through illustrated story telling is such a compelling way to transport people and to communicate provenance and origins. We look forward to this year with incredible optimism. The resilience of the grocery world has seen brands continue to innovate and engage with us to deliver exciting, innovative packaging that grow sales,” says Bickerton.

“EXPECT BRANDS TO LEAN INTO SUSTAINABILITY”

FMCG BUSINESS - FEBRUARY 2022

For more head to marxdesign.co.nz

What success looks like

Would you like to take market share, excite your sales team, improve distribution and delight your customers with award-winning packaging? Get in touch today by contacting Janine Bickerton, General Manager

janine@marxdesign.co.nz +64 21 934 295

[ packaging & design ]

THE

DANGER

IN TRENDS It’s that time of year when all eyes are on what’s coming. High season for trend-watchers and the soothsayers of marketing, their words clung onto for sign of what’s hot – or at least likely to be in the year ahead. In case you missed it, here’s the condensed version of what’s predicted for FMCG packaging. Sustainability, obviously, but in an overt way. Bright colours as an antidote to Covid-induced gloom. Latching on to topical political and social trends like identity and mental health. And the importance of presenting well online as sales move that way. There are a few other riffs on those main themes and they’re all well and good. But here’s the catch. In a world saturated with information and analysis, everybody’s reading – and cross referencing – the same reports. Everything will be backed up by impressively presented data.

Data which of course can only measure what has happened, not what’s going to happen. Spot the irony? This means we are going to see loads of packaging that dutifully follows those trends. In other words, predictable groupthink. If your brand isn’t differentiated in a competitive market, you might as well pack up shop and go home. So the question about trends is this: do you follow them or avoid them? At brotherdesign.co.nz you’ll see packaging design that has set trends rather than followed them. It’s how we intend to do things again in 2022. By Jenny McMillan, Business Development Director, Brother Design www.brotherdesign.co.nz Ph 021 1932141

[ sponsored content ]

LOOK OUT FOR NEW MULTIPACKS ARRIVING IN STORE The Bluebird Foods team is relaunching multipacks across multiple brands in March 2022 to better meet consumer needs. Look out for the new multipacks arriving in store for Bluebird, Sunbites Grain Waves, Delisio, Doritos, Cheetos and Copper Kettle. The existing small multipack portfolio (10s/8s/6s) will be replaced with 5s and 6s in single flavours, offering consumers greater choice with a multibuy promotional mechanic as they will be able to choose the flavours they want, and there will be more flavour options available. The team has invested significantly at their manufacturing site to enable the move to the new multipack format, which means the new packs are more efficiently packed to reduce plastic and unlock shelf space savings to allow for innovation, improved availability and a better range of flavours and products. The new packaging can also be recycled via the soft plastics recycling scheme. 34

FMCG BUSINESS - FEBRUARY 2022

The new multipack portfolio has been redesigned to enhance shopper navigation and highlights product benefits on front of pack, based on insights from shoppers around how the category is shopped. The launch will be supported by a significant investment to communicate the change to shoppers.

SALES SUCCESS BY DESIGN

For us the only measure of successful design is that it works in the marketplace. That it grabs attention, steals hearts and wins sales. If you want to know how we do it, consistently, for all our different clients, get in touch. And let us design a way to win more sales for you. Jenny McMillan, Business Director Ph: 021 193 2141 jenny@brotherdesign.co.nz

[ cover story ]

NEW, REYCLED CONTENT PACKAGING FOR HANDEE, PUREX & SORBENT! NEW Handee paper towel, Purex and Sorbent Toilet Tissue packaging to hit the shelves containing 20% recycled plastic. As market leading brands in the category, this will be the first recycled plastic packaging seen in the paper towel and toilet paper aisles of New Zealand’s supermarkets. Recycled plastic has been used before and reduces plastics going to landfill, supporting the development of New Zealand’s circular economy. Essity’s investment into recycled plastic packaging in its Kawerau Mill comes after 18 months of research and trials investigating sustainable packaging options. The Handee, Sorbent and Purex range of products has been transitioning to 20% recycled plastic packaging since October 2021. “We know New Zealanders are concerned about plastic waste, so we are excited to be making our products available to our customers and consumers with more sustainable packaging. Our research into sustainable packaging options shows that using 20% Post Consumer Recycled (PCR) content in Handee paper towel, Purex and Sorbent Toilet plastic packaging, reduces the carbon footprint of our packaging, contributes to the circular economy and reduces plastic waste,” said Fiona Baxter, General Manager Sustainability for Essity’s Australasian operations. “From the beginning of the project we chose to follow best practise and drive the circular economy. This meant we chose materials which were not only technically recycled but likely to be collected and recycled at scale. We reviewed paper packaging, but due to issues with contamination at curbside and the lack of local capacity to reprocess we were concerned that

this was unlikely to be recycled. Adding post consumer recycled content to our soft plastics packaging drives the circular economy by creating valuable material to be collected and processed.” Developing this packaging innovation has had many technical hurdles and 20% is just the start of Essity’s journey as they have plans to increase the PCR content. Essity’s “forest to flush” product lifecycle for these products has been independently reviewed, confirming that packaging contributes less than 10% to the carbon footprint for these products. 20% recycled content in this new packaging reduces the carbon footprint further and moves Essity closer to the sustainable packaging target of 85% recycled and/or renewable content in their packaging by 2025. Essity will save approximately 13 tonnes of virgin plastics per annum by transitioning to 20% PCR.

[ profile ]

TC TRANSCONTINENTAL – POUCH MAKING IN NEW ZEALAND With continuous global supply chain limitations impacting the supply of your products on time in the fast-moving consumer world, TC Transcontinental is committed to expanding their New Zealand manufacturing capability to give them the ability to meet unbeatable lead-times and keep up with demand, no matter the season or the reason. The team says: “We are excited to announce the commission of our pouch making facility in Christchurch. Whether you are launching new premium products, re-branding, or want to minimise supply chain risks with imports, you’ll never have to do it alone. From concept to the shelf, we work with you side by side in collaboration, to create the perfect, innovative and sustainable pouch for your product. They’re available 36

FMCG BUSINESS - FEBRUARY 2022

in a wide range of sizes from single-serve pouches through to large industrial applications. And the variety doesn’t end with size. Choose from one of our many styles and shapes and features to fit your unique needs and have your customers grabbing for more.”

An alternative choice of supply partner for your packaging needs With over 30 years of flexible packaging supply capability and award-winning print in the FMCG sectors in both New Zealand and Australia, we also actively work closely with our customers on sustainability initiatives. Talk to us by calling 0800 355 399 or visit us at www.tc-nz.com

We are excited to announce the commission of our pouch making facility in Christchurch. Whether you are launching new premium products, re-branding or minimising supply chain risk from importation, you’ll never have to do it alone. www.tc-nz.com

[ packaging & design ]

SEEING THE FOREST FOR THE CHEESE Named after a local forest in the South Island of New Zealand, Talbot Forest Cheese Co. produces specialty cheeses that have become very popular since launching in 2000. However, following a thorough brand audit, it was decided the brand and packaging needed an upgrade to better reflect its origins and re-establish credentials as an iconic, if not disruptive, Kiwi! Finding inspiration in its New Zealand Forest origins, Onfire Design went to work bringing the brand story to life along with its quirky personality and unique perspective in cheesemaking. Utilising a bold typographic woodblock pattern, Onfire wove a botanical theme of local flora, fauna and birdlife illustrations throughout the entire range. At the point-of-sale, this creates an eye-catching,

ever-changing forest scene. The result is a brand that sparks curiosity with a distinctive personality in a category that’s become saturated with various iterations of the now commoditised craft story. Maja Szarmach, the Head of Marketing and Innovation for Talbot Forest Cheese says: “The specialty cheese category is extremely fragmented, so driving brand presence and commanding shopper attention are key drivers of success. Having worked with Onfire Design on several successful package design projects I knew the team was well placed to deliver. The outcome is a fresh, bold design that embraces Talbot Forest’s roots and story but does so with a contemporary vibrant look that sparks curiosity and attention – a real game changer for the brand and for the category!”

READY WHEN YOU ARE To ignite your brand and packaging, call Sam Allan on 021 608 204 or sam@weareonfire.co.nz.

www.weareonfire.co.nz

[ legal advice ]

LABELLING AND PACKAGING REGULATIONS FOR FMCG BUSINESSES The Fair Trading Act 1986 (“FTA”) applies to any person or business who engages in trade, which covers most businesses, including overseas businesses supplying goods and services in New Zealand and online sales. The purpose of the FTA includes protection of consumers by requiring businesses to provide truthful and accurate information about their products and services. Given the hefty fines that businesses may be subject to for breach of the FTA terms (up to $200,000 for an individual and $600,000 for a body corporate, for each offence but excluding any additional penalties), it is important that businesses are aware of their obligations under the law and for consumers to understand what to look out for. This article sets out three important elements of labelling or packaging of products that businesses must comply with.

1. All claims on packaging must be truthful The FTA prohibits: • General misleading or deceptive conduct; • False or unsubstantiated claims; and • Unfair sales tactics. Businesses should therefore only make claims that can be supported by evidence and are well founded. This is particularly important if a business or product is promoting certain qualities in relation to: • Environmental impact; • Country of origin; • Claiming products are organic; and • Health/nutritional claims. Particularly in New Zealand where consumers are generally encouraged to buy local, consumers may be influenced to pick a product that is “New Zealand made”. If a business is claiming the same, then the majority of the production process and active ingredients should be in, or sourced from, New Zealand.

2. Point out any defects Under the Consumer Guarantees Act 1993, businesses are required to sell products that are of acceptable quality. However, provided that any defects are only minor and the consumer is

advised prior to purchasing them, these products may still be sold. Such defects may include: • Damaged packaging; • Missing items; or • Items past their best before date. Consumers should be well informed before purchasing a product with a minor defect so businesses should be clearly indicating any defects on the labelling.

3. Disclose important information The FTA requires a business to disclose certain information about their products when selling them, including: • date marking; • a list of ingredients; • relevant warnings and advisory statements; • the food’s name or description; • your business’ name and contact address; • allergen information; • percentage labelling; • food quantity/weight; • a nutrition information panel; and • use and storage instructions. If the required information does not appear on food labels, that business may be seen to be misleading consumers, which is unlawful and may lead to penalties being imposed under the FTA.

Flory Park Solicitor Steindle Williams Legal Limited www.swlegal.co.nz

“UNDER THE CONSUMER GUARANTEES ACT 1993, BUSINESSES ARE REQUIRED TO SELL PRODUCTS THAT ARE OF ACCEPTABLE QUALITY.” FMCG BUSINESS - FEBRUARY 2022

[ events ]

DAIRY FREE AWARDS 2022 Will it be Duck Island Strawberry and Lime ice cream, the Nut Brothers new chocolate flavoured peanut milk, the new vegan butter, Vutter or one of Raglan’s coconut yoghurts? The best of New Zealand’s dairy-free foods will be revealed in February. The Vegan Society is announcing its third annual Dairy Free Awards to time with internationally celebrated “FebNoDairy”, with a number of dairy-free products up for pole position. Voting begins on 1st February and the Award winners will be announced at the end of the month. Meanwhile the Society is calling for submissions of favourite dairy-free (and vegan) products, seeking nominations from individuals and industry alike. The awards are split into four categories, featuring vegan versions of Butter, Milk, Ice Cream and Yoghurt. The dairy-free market is open to everyone, including vegans, those with dairy allergies, flexitarians, vegetarians and others wishing to reduce their fat and cholesterol intake. They are keen to find delicious foods that they can pour on their cereal, in their tea or as a tasty cold treat. Supermarkets note that as the price of dairy increases, people are buying more plant-based alternatives, including dairy-free items. Oat milk in

particular has seen a surge in consumer demand of 270%, with local companies now having their eye on Asian exports. “The market for dairy-free alternatives continues to grow and the Vegan Society is recognising this with our People’s Choice Awards. This is an opportunity for New Zealand’s farmers to diversify and ensure that NZ grown plants can be used in all these great products. Oat milks and yoghurts are becoming particularly popular as people seek to reduce their cholesterol,” said Claire Insley, media spokesperson, “these foods are better for your health and better for the environment and it is time they were given the opportunity to shine. Our Awards seek to do this and we are looking for your help to make it happen for your favourite dairy-free product.” The Vegan Society is happy to receive nominations both from consumers and producers of dairy-free products. This year the Society is looking for companies to self-nominate their best-selling products, so get the recommendations in! Product submissions can be made here with up to two suggestions in each category: https://www.vegansociety.org.nz/dairy-free-awards-2022/ Voting takes place from 1st until 25th February, with the winners announced on 28th February 22.

“THIS YEAR THE SOCIETY IS LOOKING FOR COMPANIES TO SELF-NOMINATE THEIR BESTSELLING PRODUCTS”

FMCG BUSINESS - FEBRUARY 2022

[ events ]

RED MEANS RESTRICTIONS All of New Zealand moved to the Red setting of the COVID Protection Framework at 11.59pm on Sunday 23 January, to slow down and manage the spread of Omicron in the community. Events can still go ahead at Red, with My Vaccine Pass requirements, but new mask mandates and new restrictions are now in place for events for the next few weeks. For indoor events, there can be up to 100 people in a defined space at the venue at any time, based on 1-metre physical distancing. This includes children, but not staff. When food and drink is being served, delegates must remain seated and separated. You can move around when you are not being served or eating. You will need to wear a mask at food and drink businesses and events and gatherings. You can take your mask off to eat or drink. For more information and updates visit https://covid19.govt.nz/ traffic-lights/life-at-red/events-and-public-facilities-at-red/ events-at-red/

“NEW MASK MANDATES AND NEW RESTRICTIONS ARE NOW IN PLACE FOR EVENTS”

New Zealand Chocolate Awards judging is planned for May, with an experienced judging team led by Elle Coco.

WHAT’S ON IN 2022 FEBRUARY

MAY

27 NZ CHAMPIONS OF CHEESE 2022 Judging at WINTEC, Rotokauri Campus, Hamilton https://nzsca.org.nz/cheeseawards/

5 NZ CHEESE AWARDS Trophies announced https://nzsca.org.nz/cheeseawards/ 11-13 FGC ANNUAL CONFERENCE Queenstown, NZ https://www.fgc.org.nz/

MARCH 18-20 THE FOOD SHOW Christchurch Arena https://www.foodshow.co.nz/ 26-27 CHOCOLATE & COFFEE FESTIVAL Auckland, NZ https://chocolatecoffeefestival.nz/

APRIL

9 OUTSTANDING NZ FOOD PRODUCER AWARDS Judging https://www. outstandingfoodproducer.co.nz/

27-29 THE FOOD SHOW Sky Stadium, Wellington https://www.foodshow.co.nz/

JUNE

5-7 FRUIT LOGISTICA Berlin, Germany www.fruitlogistica.com

14 NZ CHOCOLATE AWARDS Judging https://www.nzchocolateawards. co.nz/

18 GROCERY CHARITY BALL Auckland, NZ https://www.grocerycharityball. org/

JULY 28-31 THE FOOD SHOW Auckland Showgrounds https://www.foodshow.co.nz/

Visit the websites and contact the event organisers for further details and updates. To have your event listed in FMCG Business email: trubanowski@intermedianz.co.nz. FMCG BUSINESS - FEBRUARY 2022

WHAT’S COMING UP IN FMCG BUSINESS 2022 Connect – Engage – Inspire ISSUE

FEATURES

CATEGORY INSIGHTS

February

• Breads and Specialty • Health and Wellness Breads • Packaging and Design • Salads and Dressings • Commercial Equipment • Functional Foods

March

• Breakfast Foods • Chilled Convenience • Chocolate and Foods Confectionery • Recruitment & Training • Dressings and Sauces • Security • Eggs and Poultry • Pet Food and Pet Care • Haircare • Soups • Dairy Products

ISSUE

FEATURES

CATEGORY INSIGHTS

• Baby Products • Eftpos and Point Of Sale • Storage

• Biscuits and Crackers • Vitamins and Supplements • Condiments

August

• Frozen Food Trends • Kitchen Equipment • Anti-Aging Products

• International and Ethnic Foods • Rice, Noodles and Pasta • Herbs and Spices

September

• Waste Management and Recycling • Beauty and Make-up

• Cold Drinks • Skincare • Cleaning and Homecare • Ice Cream and Desserts • Deli • Fish and Seafood

July

April

• Marketing and Merchandising • Fresh Produce • Winter Wellness

October

May

• Transport and Logistics • Spreads • OTC Medicines • Convenience Meals • Innovation • Pies • Sustainability

• Organic Products • Sugarfree Products • Cheese

June

• Vegan and Vegetarian Products • Allergy Friendly Foods • Nuts and Pulses

Summer Issue

• Sustainability • Personal Care Products • Snacking • Oral Care • Back To School • Summer Entertaining Products • First Aid Supplies

• Hot Drinks • Baking Products • Oils

Whether you have exciting NPD due out, an announcement to share, or just looking for a brand boost, contact Vicky Bennett to find out how to get your marketing communications in front of a highly engaged and targeted audience.

Vicky Bennett P: 09 947 5675 | M: 021 626 115 vbennett@intermedianz.co.nz Should our features list not marry up with your NPD launches or product timings, you can still promote them when they launch. We’re happy to work with you on that. Many brands choose to promote outside of our scheduled features as it’s all about timing!

OUT & ABOUT

New World and Four Squ

are have partnered with

Uber Eats for grocery deli

veries.

Iconic Kiwi cook Jo Seagar visited Pic Picot at Pic’s Peanutb utter World in Nelson.

Soft Plastic Recycling has returned to Paeroa. (L to R) Tane Bradley, Managing Director Agrisea and Alice Davidson, Paeroa Countdown store manager.

SNAP AND

WIN!

The team at Ne

w World

Wanaka lau Three Parks in

nched their on

line shopping

. service recently

Has your team moved to new premises, or been part of a fun event, great harvest, or promotional activity? Send us your favourite snapshots to be in to win a teeVee snacks prize pack worth over $50! Arnott’s has extended its popular teeVee snacks range with three new mouth-watering flavours: Birthday Cake, Chocolate Brownie, and Honeycomb Chocolate. Also launching in New Zealand are the much-loved teeVee snacks Malt Sticks and teeVee snacks Original varieties.

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

FMCG BUSINESS - FEBRUARY 2022

[ convenience & impulse retailing ]

LEADING THE WAY Deb Jackson, Managing Editor, C&I NZ

Welcome to Convenience & Impulse Retailing New Zealand (C&I NZ), created proudly in partnership with the New Zealand Association of Convenience Stores (NZACS). In this special Leaders Forum issue, we hear from leaders in the convenience industry about the highlights of 2021 and their outlook for 2022. Dave Hooker, Executive Director, NZACS, discusses the power of relationships and how they can help you to build the resilience to overcome hurdles. He also outlines the challenges the petrol and convenience channel is currently facing and how resilience will help the industry to overcome these. Andy Baird, GM Retail, Z Energy, talks to C&I NZ about how the Z business has harnessed the power of technology to respond to changing customer demands during the pandemic. He also provides an update for the future of the business as it sets its sights on becoming a leader in the mobility-10 space – selling customers things they buy and consume within 10 minutes.

Louise Mitchell, Senior Category Manager, NPD, talks about the continued development of the NPD Refresh Café retail offering as well as NPD’s launch into the North Island. The business has plans to open a further 32 sites in the North Island over the next three years and will also be introducing the Refresh Café retail offer in the not too distant future. Finally, in this issue we hear from some inspirational young leaders of the industry, Andrew Olsen from Frucor Suntory and Kailee Weir from BAT NZ, who were the winner and runner-up of the NZACS Peter Jowett Scholarships, announced in late 2021. They tell us about their Peter Jowett presentations as well as what the awards mean to them. We’d like to thank Dave Hooker, Andy Baird, Louise Mitchell, Andrew Olsen, and Kailee Weir for their contributions to this issue of C&I NZ. Until next time, Deb Jackson

PETROL AND CONVENIENCE NEWS PROUDLY BROUGHT TO YOU BY 44

FMCG BUSINESS - FEBRUARY 2022

[ convenience & impulse retailing ]

LEADERS FORUM:

NZACS

Dave Hooker, Executive Director, New Zealand Association of Convenience Stores (NZACS), discusses how strong relationships lead to resilience.

“YOU MUST LOVE THE INDUSTRY YOU ARE IN. IF YOU DON’T, YOU’RE JUST DOING A JOB.” – DAVE HOOKER, EXECUTIVE DIRECTOR, NZACS

Dave Hooker, Executive Director, NZACS

When asked to write a piece in the Leaders Forum where does your head naturally go? Business, business, business. Like everybody, I’m just one of many that has endured lockdowns, Zoom meetings, air frying and online funerals for friends and family over the last 12 months. I’ve struggled with a business environment that feels like we are walking on jelly at times. Reflecting on the last two years, for myself and other leaders, the challenge is how to maintain a level of resilience in an ever-changing landscape. Being resilient is all about relationships. The stronger your relationships the better your resilience. Like any good building, strong foundations are imperative – so those are the relationships with family and friends. Work on these first as they will always be the most important. If these become wobbly it’s hard to concentrate on the superstructure. So, what is the superstructure? This is the piece the whole world sees, your out of home and professional relationships. If these are strong and rewarding working through tough times becomes a lot more satisfying and manageable.

If these relationships are constantly challenging in a negative way this will chip away at your resilience to the point where you are most likely looking for another role or company. You must love the industry you are in. If you don’t, you’re just doing a job. So, this brings me to my position after almost 35 years in the convenience channel working for multi-nationals and now our own business plus heading NZACS. Convenience stores, P&C aren’t always viewed as the sexiest industry. Let’s face it, it’s not a Google, a Tesla, or a garage start-up about to make billions. However, I just love it, mainly because I’m energised by the people I deal with. Whether it’s an enthusiastic new key account manager or a business owner or manager that I have known for more than 20 years the motivation I get from these professionals is priceless. If you’re running a convenience store your business relationships are clear. Your professional advisors, your suppliers and most importantly your customers. If you find yourself locking horns with any of these folks on a regular basis there is some work to do that will benefit you both. As a channel, P&C has some huge challenges coming: • What does an alternate fuel future look like? • What will be the impacts of the Smokefree Aotearoa Action plan on our businesses? • How do we manage spiralling costs and reducing or stagnant margins? We aren’t’ always going to get on with everyone, however, nurture the relationships you value, develop recent ones and look forward to making more in the future and keeping them. This will naturally build resilience to help you over the small and larger hurdles ahead. New Zealand is a small place and operators in FMCG tend to be around for a long time. Don’t burn your bridges – build them and keep them strong. FMCG BUSINESS - FEBRUARY 2022

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LEADERS FORUM: Z ENERGY Safety, speed, and convenience are at the forefront for Z Energy. Responding to Covid continued to be a focus for us this year, but this time around we had been there before and we knew what to do to keep New Zealand fuelled up, safely. As an essential business we have continued to operate through lockdowns, albeit slightly differently. We are hugely proud of our retailers and their teams who stay open to fuel up our emergency and essential workers, regardless of the Covid Alert Level restrictions. During a highly uncertain time, our teams continue to serve their fellow New Zealanders with courage and compassion.

Keeping customers fuelled up, safely and swiftly Covid has reinforced the importance of helping people move from A to B in a safe and secure way. While safety and security mattered more than ever for New Zealanders, the focus also swung back to speed and convenience. Like most businesses, we realised the important role innovative technology can play in quickly responding to changing customer demands. Fortunately, this has been an area of focus for us for some time. Harnessing the digital capabilities that we had previously invested in, we created ‘Pay in App’ and ‘Pay by Plate’ at the end of 2020, adding to our ecosystem of ways to pay. Offering safety and speed, Pay in App meant customers could fill up and go using the Z App at any Z service station, avoiding the queues or any close contact altogether. Pay by Plate, which is available at more than 60 Z sites, made it even easier as the cameras at the service stations will read the pre-registered motorist’s number plate automatically and release the pumps in any lane. Payment is automatically processed in the Z App once the nozzle is replaced – allowing the customer to fill up and go without needing to enter the store or use their phone to process the payment. Pay in App and Pay by Plate experienced customer sign-up growth of more than 40 per cent in the first two months and have continued to grow – with the active customer base up by more than 80 per cent from this time last year. The pre-order coffee function of the Z App also proved popular in 2021, with a 25 per cent increase year on year. It was already taking off pre-Covid but has accelerated, in part because it has reduced the amount of time a customer needs to wait inside the service station. For service stations like ours, the convenience retail side has played just as important of a role in serving our communities this year, with 46

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Andy Baird, GM Retail, Z Energy

the trends we saw emerge in 2020 remaining much the same in 2021. Z’s grocery and convenience store products provided New Zealanders with the goods they needed during lockdown – milk, bread, toilet paper – in a simple, easy, and safe way, without the hassle of lining up for a supermarket.

Planning for the future What the last two years have confirmed for us is the direction we want to head – as a leader in the mobility-10 space – selling our customers things they buy and consume within 10 minutes. Our locations in local communities across the country, ease of access with onsite parking, and innovation such as the pre-order coffee and fuel payment app all work to support a highly mobile nation on the go. We believe the trends we have seen emerge through Covid are likely to remain, with safety, speed, and convenience at the forefront for customers, and we believe we are best placed to meet these needs. What’s next for us to achieve this? We are currently in the process of upgrading our stores. The new and improved stores are focused on a space that gives customers the most in convenience retail – expanding our fresh food range, enhancing the store layout, and creating room for growth as we continue to innovate.

[ convenience & impulse retailing ]

LEADERS FORUM: NPD C&I NZ chats with Louise Mitchell, Senior Category Manager, NPD, about the businesses highlights of 2021 and outlook for the year ahead. C&I: What were the highlights for NPD in 2021? Mitchell: The NPD network has grown rapidly over the past few years – a highlight being our launch into the North Island market in 2021. We started our North Island expansion with four premium Self-Serve sites located in Auckland, Hamilton, New Plymouth, and Palmerston North. And recently we opened a fifth site in Pukekohe. We have continued to grow our South Island network with new sites opening and older sites being refurbished. We now have more than 95 sites throughout the country with more planned in the future. The continued development of our NPD Refresh retail offering and café experience has been another highlight for 2021. Our Refresh Café sites have been architecturally designed with customers in mind, they’re light, bright, and spacious. We have also made significant investment in high end cooking equipment to ensure we are delivering top-quality product. When visiting an NPD Refresh Café, our customers can enjoy delicious barista made coffee or a selection of tasty treats from our extensive range. We offer forecourt service to ensure our customers are being looked after as soon as they arrive, as well as clean, modern facilities. What really sets us apart is our signature range of café products – our delicious chicken, real fruit ice creams and burgers, which are all freshly prepared on site. With an increase in demand for convenience shopping during lockdown, we have expanded our retail offering to allow our customers to grab essential items while fuelling up. We are a customer centric business, and we are extremely proud to have been ranked number one for customer satisfaction in the Canstar Blue awards on multiple occasions.

“WE PLAN TO INTRODUCE OUR RETAIL OFFERING AND REFRESH CAFÉ TO THE NORTH ISLAND IN THE NEAR FUTURE.” – LOUISE MITCHELL, SENIOR CATEGORY MANAGER, NPD

Louise Mitchell, Senior Category Manager, NPD

Strong supplier relationships are something we pride ourselves in, so it was great to be recognised for our high standards of in-store execution for the last few consecutive years at the NZACS awards.

C&I: What were the major challenges and how were they overcome? Mitchell: The New Zealand fuel industry was not exempt to the impact of Covid-19. Through the challenges and uncertainty NPD Ltd was able to experience continued growth. To be able to achieve growth among the challenges presented by the global pandemic is something we are incredibly proud of and is a testament of our strong company culture and dedicated team. As a family-owned, Nelson-based fuel retailer, we have been careful to retain strong family values throughout our expansion. We have a reputation built on catering for customer needs and our profits are reinvested into development and local communities.

C&I: What will be the key focus for NPD in 2022? Mitchell: Our launch into the North Island is in its early stages. We have the goal to open a further 32 sites in the North Island over the next three or so years. We currently have sites in the design and consent process and are actively seeking high-profile sites for development. We also plan to introduce our retail offering and Refresh Café to the North Island in the near future. Innovation has always been a key focus for NPD as we have looked to grow our network. All our site designs, systems and infrastructure utilise the latest technology and equipment to create an excellent and efficient forecourt experience. In 2018 we brought 100plus high performance petrol to the market. This is New Zealand’s highest octane road legal petrol product to be offered from an established fuel retail network. We have applied our innovative thinking to develop our own unique range of chicken products. Southern Crunch chicken is proving to be incredibly popular. It is only available at selected retail outlets at present but will be rolled out to new sites over the months to come. The fuel industry is fast paced, dynamic and ever changing and we have no doubt there will be more challenges ahead but with a strong a company culture and commitment to meeting our customer’s needs we are confident we can achieve our future goals. FMCG BUSINESS - FEBRUARY 2022

[ convenience & impulse retailing ]

NZACS PRESENTS THE 2021 PETER JOWETT SCHOLARSHIP WINNER Thomas Oakley-Newell from C&I sat down with this year’s winner Andrew Olsen, Key Account Manager P&C, Frucor Suntory. C&I: What did it mean to you to win the Peter Jowett Scholarship? Olsen: Winning the Peter Jowett Scholarship to me meant a great deal. To have the opportunity to present my idea to so many industry leaders was an honour, but to know that they believed that my idea, and the way in which it was constructed and presented, was the best of the bunch is special. However, at the end of the day the experience alone contributed to a large amount of personal development for me. Many thanks to the senior leaders within Frucor Suntory who I was able to connect with and learn from through conceptualizing the idea.

C&I: Can you tell us a bit about your submission?

Just being part of the experience alone forces contestants to push themselves and expand their skillset in a new direction vs what they can in their day-to-day role.

C&I: What was the most inspiring or pivotal moment you observed in 2021?

L-R: Katherine Ledger, Andrew Olsen, Justin Ramsey from Frucor Suntory

“I STRONGLY BELIEVE THAT THOSE THAT DON’T ADAPT WILL BE LEFT BEHIND.” – ANDREW OLSEN, KEY ACCOUNT MANAGER P&C, FRUCOR SUNTORY

Olsen: My submission was all about the current challenges our retail partners face in the Covid environment and how we must look to set ourselves up for future success through adopting new ways of working. Specifically, my presentation was focused on the changing behaviours of our consumers first and foremost, but also trends that we see accelerating year-on-year as they will play a large role in the future of the industry. My solution was an app that focused on not only the evolving digital world but more specifically on how information from an advanced digital platform can redefine our physical network (stores) by providing us with more accurate information on consumer behaviour to efficiently cater to their needs, providing a convenient experience. With the aim of increasing sales and reducing cost of operating.

C&I: Why is the Peter Jowlett Scholarship so important to the sector? Olsen: The Peter Jowett Scholarship sets a platform in which young people in our industry are given the best chance to really challenge themselves and their ideas on a stage that continues to set a great standard. I believe the Scholarship is such a great way to connect young, emerging talent with experienced industry leaders, which results in amazing learning and development opportunities for those competing. 48

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Olsen: I like this question, it’s so easy to see so much doom and gloom at present. I’m a sports fanatic and a very competitive person, but I still believe that health and wellbeing is the most important thing in life. For me, when Simone Biles made the brave decision to put her mental health first during the 2021 Olympics amongst all the external and internal pressure that surrounded her at the time is nothing short of amazing. It’s great that mental health is continuing to become a bigger part of the conversation, and it takes situations like this to make a difference.

C&I: How do you see the convenience landscape evolving in 2022? Olsen: The pandemic no doubt has played a huge role in what 2022 will look like. I see the continual emergence of trends such as Omnishopping behaviour becoming the forefront of the sector. Consumers will continue to use digital devices not only to purchase product online but to influence the product they purchase in a physical store. Therefore, it is important that we have infrastructure in place such as ‘click and collect’ along with the necessary information online such as product availability and product reviews/information as these will become powerful tools in the success of physical stores. I strongly believe that those that don’t adapt will be left behind.

C&I: What is your key message to the convenience category in 2022? Olsen: To master the basics. Too often we walk into a store and the shelves are empty. Something as simple as understanding your consumers and what product they are looking for will ultimately be the key to success through these tough times.

[ convenience & impulse retailing ]

RUNNER-UP OF THE NZACS 2021 PETER JOWETT SCHOLARSHIP Thomas Oakley-Newell from C&I sits down with Peter Jowett runner-up Kailee Weir, Trade Marketing Rep, BAT NZ. C&I: How did it feel coming runner-up in the 2021 Peter Jowett Scholarship? Weir: Firstly, I am grateful we were still able to present our ideas in an online platform, which was very fitting considering everything has moved digitally in a pandemic environment. Presenting online is a skill we have had to adopt and was not an easy feat. It was a tough competition, as candidate presentations were exceptional. Throughout this journey I was able to connect with many facets of the business and gain deeper insights into building business proposals and it has broadened my scope into the convenience sector. The experience gained from such an opportunity provided by NZACS was invaluable.

C&I: Can you tell us a little about your Peter Jowett submission concept? Weir: Digital transformation is accelerating across the retail industry and the ongoing pandemic has made technology more important than ever before. My concept – LitE, embraces this by using a simple adaption

of technology that links from the petrol kiosk to a mobile application, which allows customers to purchase various consumer goods. This captures additional spend and increases foot traffic, driving a highly profitable business model.

C&I: Why is the Peter Jowett Scholarship so important to the industry? Weir: Peter Jowett influences lateral thinking around possible solutions to issues faced by the convenience sector and encourages up and coming leaders to stretch their approach when developing innovative solutions.

C&I: How do you see the convenience industry evolving? Weir: Covid-19 has changed the way consumers shop and their preferences while doing so. BAT itself is evolving at pace into a truly multicategory CPG company and transforming to reduce the health impact of our business, so it is critical we keep closely aligned with similar evolutions across the convenience sector. The pandemic has accelerated payment digitalisation across the entire retail sector. Frictionless payment and digital wallets are becoming more mainstream. Consumers are craving convenience, and retailers must continue to adapt their operations for evolving consumer behaviours.

C&I: What are you most looking forward to over the next year? Weir: I am extremely grateful for both the personal and professional growth the scholarship process has provided me across 2021. Looking toward 2022, I endeavour to further grow these learnings and hope that I can mentor a future candidate of the Peter Jowett scholarship awards. I look forward to watching convenience continue to adapt and grow.

Kailee Weir, Trade Marketing Rep, BAT NZ

“CONSUMERS ARE CRAVING CONVENIENCE, AND RETAILERS MUST CONTINUE TO ADAPT THEIR OPERATIONS FOR EVOLVING CONSUMER BEHAVIOURS.” – KAILEE WEIR, TRADE MARKETING REP, BAT NZ FMCG BUSINESS - FEBRUARY 2022

If you supply goods or services to, own or work in independent grocery, a convenience store, service station, dairy, corner store or mini-mart, C&I Expo NZ is the one trade event you cannot afford to miss in 2022. Attendance is FREE and you can register now at candiexpo.co.nz For an Exhibitor Prospectus or to discuss Stand options, please contact: Safa de Valois Group Publisher & Commercial Director safa@c-store.com.au +61 405 517 115

C&I Expo NZ will bring together convenience suppliers and retailers from all banners and brands for two days of education, networking and business building. You will taste, touch and see the very latest in NPD and merchandising services for the convenience industry.

For more information visit www.candiexpo.co.nz Association Partner

Silver Sponsors

P: 0800 455 785 | E: exhibition@candiexpo.co.nz

THE FUTURE IS Bright FOR C&I After 28 years of successful expos in Australia, the C&I NZ Expo made its debut in Auckland in September 2019. It was a huge success with incredible support and enthusiasm for the show from the NZ industry. “We were absolutely blown away by the industry support for the inaugural C&I Expo NZ. The debut expo featured 70 exhibitors, huge foot traffic and over 220 industry professionals attended the Industry Symposium. We are looking forward to bringing the Expo back to Auckland in 2022 even bigger and better!” – Safa de Valois, C&I Commercial Director

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