FMCG - July 2017 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

July 2017 – Volume 4 – No 6

SOFT, STRONG AND

TRA

ONG!

DRIVING FURTHER GROWTH IN THE LONG ROLL SEGMENT – NOW 25% + VALUE OF TOTAL TOILET TISSUE* CottonSofts is proud supporter of Bowel Cancer NZ, Environmental Choice NZ and foundation supporter of soft plastic recycling in NZ. *Source: IRI $ Share of Toilet Tissue MAT to 09/04/17

PLUS!

CAKES & BISCUITS

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EVENTS

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BABY CARE

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NEW ZEALAND’S LARGEST FMCG AND LIQUOR AUDIENCE

Kieran Read Rugby Legend & Swisse Ambassador

“I need a premium quality formula to help me perform at my best.”

Swisse Men’s and Women’s Ultivite Specifically tailored with a combination of 50 vitamins, minerals, antioxidants and herbs to help fill nutritional gaps. Premium quality formula to help support: •

Energy production

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Vitality

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General wellbeing

swisse.com Always read the label. Use only as directed. Supplementary to and not a replacement for a balanced diet. Swisse Wellness Pty Ltd, Auckland, New Zealand. 0508 SWISSE.

contents

July 2017

Up Front

Events

Editor’s note

BIG milestone for BIANZ

Industry news

The Chocolate & Coﬀee Show is back

Gear New technology for work, rest and play

Supreme Pies The 2017 NZ Bakels Supreme Pie Awards will be held soon

Food Show to be ﬂavour of the month

Events Calendar

Social Sphere Industry members spotted out and about

Category Insights 16

Cakes, Biscuits & Crackers

Vitamins & Supplements

Baby Care

Regulars

The Shout

Marketing Sensible food shopping at cheap prices

Editor’s note and industry news

Industry news and insights

Export DIY distribution key to success

The New Zealand Cider Festival

In Season Fresh produce in store

Taking the lead in liquor Key trends and innovations from the United States

What’s Hot New products in store

You can’t beat Wellington on a good beer day

Hoppiness comes ﬁrst Q&A with hop expert Amy Paisley

Meet the winemaker

A look at the alternative Celia Hay explores diﬀerent wine varieties in NZ

Subtle and mysterious Pinot Noir Tasting notes from Cameron Douglas MS

Good Business 32

Industry news

Proﬁle T&G Global - still fresh at 120 years

Buy NZ Made

Cover story Exciting news from CottonSofts!

FGC Promoting basic food skills at school

Legal advice FBT for company cars

9 FMCG BUSINESS - JULY 2017

[ editorial ]

Big news and celebrations

n mid-June, Amazon and Whole Foods announced that they found a great match in each other. The mega deal is believed to be worth more than US$13 billion and will give Amazon’s online grocery business a substantial boost by offering in-store collection. It will also give Whole Foods a data and technology upgrade for a better shopping experience. Both players can now capitalize on fresh opportunities for crossmarketing and Amazon, which is gaining a network of more than 430 physical stores in very desirable urban locations, will soon be one of the top five grocers in the US. A quarter of households in the US already buy some of their groceries online and Amazon’s dominance of online retailing combined with its new access to Whole Foods stores will further promote the online ordering trend and the growth of ‘click & collect’ shopping. However, Whole Foods has recently evolved to make its stores more of a destination and a place to dwell, by adding in-store beer and wine bars and store events such as cooking classes. We’ll soon see whether Amazon and Whole Foods will add a faster, tech-based check-out process for those who prefer to walk the aisles rather than ordering online. This could use Amazon’s ‘Just Walk Out’ checkout technology (launched a few months ago in the ‘Amazon Go’ test store in Seattle). Novel high-tech sensors throughout the store eliminate the check-out process there, which is ideal for time-poor people for whom convenience is a top priority. Closer to home, FMCG Business marks its third birthday this month and to celebrate the occasion, we have some special activities planned for you on our social media channels. Head over to FMCG Business on Facebook, Twitter or Instagram before 31 July 2017 and you could be in to win some great prizes. This issue brings you news and highlights from industry events, the latest product and gadget launches, Nielsen data, category insights and useful updates from our team of industry experts. Happy reading,

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

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

fmcgbusiness.co.nz

L E A D I N G

I N D U S T R Y

N E W S

July 2017 – Volume 4 – No 6

SOFT, STRONG AND

TRA

ONG!

DRIVING FURTHER GROWTH IN THE LONG ROLL SEGMENT – NOW 25% + VALUE OF TOTAL TOILET TISSUE*

ON THE COVER Now an even bigger softie, CottonSofts XL is more than twice as long as most rolls, which means consumers don’t need to change the roll as often. Read the full story on pg 37.

CottonSofts is proud supporter of Bowel Cancer NZ, Environmental Choice NZ and foundation supporter of soft plastic recycling in NZ. *Source: IRI $ Share of Toilet Tissue MAT to 09/04/17

PLUS!

CAKES & BISCUITS

EVENTS

BABY CARE

NEW ZEALAND’S LARGEST FMCG AND LIQUOR AUDIENCE

FMCG BUSINESS IS PROUDLY ASSOCIATED WITH

FMCG BUSINESS - JULY 2017

SUBSCRIPTION ENQUIRIES Eclypse Lee elee@intermedianz.co.nz

DISCLAIMER This publication is published by The Intermedia Group Ltd (the “Publisher”). Materials in this publication have been created by a variety of different entities and, to the extent permitted by law, the Publisher accepts no liability for materials created by others. All materials should be considered protected by New Zealand and international intellectual property laws. Unless you are authorised by law or the copyright owner to do so, you may not copy any of the materials. The mention of a product or service, person or company in this publication does not indicate the Publisher’s endorsement. The views expressed in this publication do not necessarily represent the opinion of the Publisher, its agents, company officers or employees. Any use of the information contained in this publication is at the sole risk of the person using that information. The user should make independent enquiries as to the accuracy of the information before relying on that information. All express or implied terms, conditions, warranties, statements, assurances and representations in relation to the Publisher, its publications and its services are expressly excluded. To the extent permitted by law, the Publisher will not be liable for any damages including special, exemplary, punitive or consequential damages (including but not limited to economic loss or loss of profit or revenue or loss of opportunity) or indirect loss or damage of any kind arising in contract, tort or otherwise, even if advised of the possibility of such loss of profits or damages. While we use our best endeavours to ensure accuracy of the materials we create, to the extent permitted by law, the Publisher excludes all liability for loss resulting from any inaccuracies or false or misleading statements that may appear in this publication. Copyright © 2017 - The Intermedia Group Ltd

i w i K

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... … n o i t a v o n n i r o A passion f om d l e s s i ' t i g n i cause…'wing s s e c c u s r o f y g e t a stra Powering success with protein www.waitoafreerange.co.nz

[ news ]

NZ chocolate wins Gold at global awards Nelson company Hogarth Craft Chocolate has scored what is believed to be a first for NZ-made chocolate, winning a gold award in the flavoured dark chocolate bar section of the 2017 Academy of Chocolate Awards. The annual Chocolate Awards are open to entries from all around the world, and this year’s ceremony will be presented at Claridge’s in London in July. This year’s awards attracted almost double the amount of entries as 2016, with more than 600 entries submitted for judging in the chocolate bar categories alone. Awards are given based on several rounds of blind tasting by Academy of Chocolate members, and a panel of international experts in food and chocolate. Chocolate is judged on a range of criteria including its appearance, depth of aroma, flavour and complexity. Hogarth won gold in the Flavoured Dark Chocolate Bar category for its Dark Hazelnut Gianduia bar, one of only six gold award winners in that category. Hogarth also received silver in the Dark Bean Bar Under 80% Cocoa Solids category for both its Acul du Nord Haiti and Gran Blanco Peru bars.

“We were delighted to receive the news of our success,” says Marina Hogarth, “especially when we realised that all three of the chocolate bars we had entered had won awards.” “It’s great to be putting New Zealand-made chocolate on the map internationally,” says Karl Hogarth. “Judging by the number of entries this year, it’s clear that there is huge growth in the craft chocolate market both here and globally. We’re particularly excited that our Gianduia chocolate uses a special variety of hazelnuts grown in Nelson.” Marina and Karl Hogarth Hogarth Craft Chocolate is distributed around New Zealand and is exported to the UK, US, Paris, Hong Kong, Japan, and Australia. The company’s annual turnover has doubled in the last year and is expected to continue to increase as more lovers of beautiful bean-to-bar chocolate discover Hogarth Craft Chocolate. “It’s so satisfying to see people tasting and enjoying our chocolate,” says Karl, “and it shows that New Zealanders are ready to embrace high-quality chocolate.”

Amazon buys Whole Foods chain for US$13.4 billion Amazon has agreed to buy grocery chain Whole Foods for $13.4 billion. The mega deal will transform the company that pioneered online shopping into a retailer with physical outposts in hundreds of urban centres across the USA. Amazon, which was founded 23 years ago on the premise of shopping from the comfort of a computer screen, is now moving into the crowded field of brick-and-mortar retail. After almost a decade of trying to sell groceries online, Amazon has realised that the majority of its consumers still have a stubborn urge to buy fresh items like fruits, vegetables and meat in person. The billion-dollar deal with Whole Foods follows Amazon’s trial of new grocery drive-through stores where customers can pick up online orders, along with a convenience store called ‘Amazon Go’ that uses sensors and software to let shoppers sail through the exits without visiting a cashier. The addition of Whole Foods now takes Amazon’s physical presence to a new level. The Whole Foods chain includes more than 460 stores in the US, Canada and Britain with sales of $16 billion in the last fiscal year. Whole Foods is best known for its organic foods, building its brand on healthy eating and fresh, local produce and meats.

FMCG BUSINESS - JULY 2017

The Whole Foods chain includes more than 460 stores in the United States, Canada and Britain.

When the deal is finalised, Amazon and Whole Foods will still only account for about 3.5% of grocery spending in the US, making it the country’s fifth-largest grocery retailer.

With deforestation in the Amazon happening at a rate of 80 trees every four seconds, sustainable goods have never been more important. Thatâ&#x20AC;&#x2122;s why Dole is a proud member of the Rainforest Alliance, reinforcing its commitment to sustainability, employee wellbeing and high quality products. The little green frog found on Dole fresh pineapples and Dole Ecuadorian bananas is the Rainforest Alliance certification logo. This is your assurance that all Dole products were produced according to strict environmental, social and economic standards that curb deforestation, protect wildlife and improve conditions for workers, families and communities.

www.dolenz.co.nz

#FollowTheFrog

DoleNewZealand

[ news ]

The best view in the world, from a supermarket! The brand new, long-awaited Four Square Tekapo has recently opened its doors to locals and travellers alike, but the great news is that this supermarket has something customers can have for free – and that’s a spectacular view of world-renowned Lake Tekapo. “Capturing that awesome view in our new location was absolutely part of the design brief,” says Steve Alexander, Four Square Group Manager for Foodstuffs South Island. “It was non-negotiable and we think it’s worth it. There will be plenty of people who will be totally captivated by the view of glacial blue water and the soaring mountains. Hopefully they won’t be so distracted that they forget to shop – there’s plenty on offer!” The new supermarket is in response to exceptional growth in the famed McKenzie District. Owner-operators Russell and Leslie Jeffries say, “More Kiwis are making the move to live in this part of the world and we have an increasing tide of tourists drinking in the light-pollution-free night skies at the Mt John Observatory, or soaking tired bodies at the local spa after an action-packed day. Tekapo has been groaning at the seams trying to cope. We worked closely with the local Council to address the needs of the community with a new store that offers more space, more products and a better shopping experience.” The new store offers an expanded range with a focus on fresh produce and grocery essentials. “We’re also catering to discerning customers, with on-site barista-made coffee, which we know will appeal to locals and travellers alike. The only issue is that on a chilly winter’s day we’ll be hard-pressed to move people out of the store as they drink in the view with their flat white,” says Russell.

Low carb potatoes roll out in NZ Spuds are lambasted by many health fanatics for being too high in carbohydrates, but shoppers in New Zealand can now enjoy Lotatoes – the low carbohydrate potato! Lotatoes launched in June 2017, in a 2kg pillow pack. The potato growers working with T&G (originally Turners & Growers) have produced a naturally bred delicious flavoursome Lotato with 40% less carbs and calories than common potato varieties. Lotatoes are set to put spuds back in the spotlight and centre stage on the dinner plate. Grown sustainably on rolling hills in Pukekohe and Ohakune, the innovation was inspired by nature. Just like with apples, kiwifruit and countless other staple NZ produce, by simply cross-breeding different varieties of potato together the team have created a winner. Lotatoes look and taste like a top-notch potato, but without the carbs and calories. 8

FMCG BUSINESS - JULY 2017

Lotatoes grower Jay Masters says, “Lotatoes is the spud of our dreams and we’re so excited that Kiwis get to bring their love of potatoes back to the dinner table.” He adds that Lotatoes have a growing cycle that is 25% shorter than other varieties, which means less water requirements – and that’s good for the planet. Top nutritionist, Abbie O’Rourke, says: “Recent trends have put potatoes out of favour with many, often replaced with lower carbohydrate or lower calorie alternatives. Lotatoes puts them back at the top of the shopping list. They’re nutritious, delicious and a great source of Vitamin B6, potassium and dietary fibre.” Michelle Singh of T&G says: “Lotatoes are a long awaited innovation for us, they’ve been more than five years in the making. We’re thrilled to bring a new and improved staple back to the limelight, and hope Kiwis are too!” Visit www.lotatoes.co/nz for recipes and more information.

Foodstuffs bans plastic microbeads

gsd 4U MERCHANDISING SOLUTIONS

Chris Quin, Foodstuffs North Island CEO

On World Oceans Day, Foodstuffs announced that its supermarkets, which include New World, PAK’nSAVE and Four Square, will be free of plastic microbeads nationwide from 1 July 2017; a full year ahead of the Government’s proposed date for banning microbeads from New Zealand stores. Scientific research has proven that the tiny beads of plastic used as an exfoliating agent in many skin cleansing products are finding their way into drains and ultimately the marine environment where they fail to break down or are consumed by marine life. Chris Quin, Foodstuffs North Island CEO, says the business started discussions with suppliers in 2016 with the aim of speeding up the change. “We’re pleased to say that many suppliers had already reformulated their products substituting the plastic beads with natural ingredients. Where brands are unable to meet our needs we’ll delist the products until new formulations are available.” Making positive change takes a collective approach. “Minimising our impact on the environment is a priority issue and banning microbeads is absolutely the right thing to do. The changes we’re making will have a positive impact on marine life – it’s great we were able to announce this change on World Oceans Day. That said we know there’s more work to be done and we will continue to see how we can reduce plastics wherever we can. “Across the two Foodstuffs Co-operatives* we have almost 30,000 team members committed to reducing waste and our environmental impact. Hundreds of thousands of our customers are also doing their best to make the right choices – using their own bags, choosing sustainable products and shopping thoughtfully on a daily basis. Our suppliers are also a big part of the solution – and it speaks volumes that they have worked with us to provide customers with more sustainable products.” Foodstuffs has introduced other environmental initiatives including 100% recyclable meat trays, LED lighting, and new refrigeration and energy systems. Foodstuffs is also a foundation partner of the Packaging Forum’s Soft Plastics Recycling Programme, collecting over five tonnes a week of packaging in purpose-designed bins located at the front of stores. The microbead ban will be celebrated in New World stores in July. Look out for some exciting promotions to help customers to change up their beauty routine. *Foodstuffs North Island & Foodstuffs South Island

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

Get in touch with us

[ gear ]

Pat Pilcherâ&#x20AC;&#x2122;s monthly round up of all the tech worth knowing about, for work, rest and play.

Belkin Valet Charger Travelling requires you to lug power adaptors with you. Given the fact that airlines charge the equivalent of the GDP of Ghana for excess baggage, this isnâ&#x20AC;&#x2122;t ideal. iPhone and Apple watch users can rejoice however as Belkin have launched the Valet charger, a portable powerpack that charges the iPhone and the Apple watch, reducing luggage clutter. http://www.belkin.com/us/p/P-F8J201/

Safe and secure: Norton Internet Security

Play all the things Back in the day having a music collection at home meant shelves packed with lots of round shiny disks. Keeping up with new releases meant finding more room to store yet more shiny disks. Thanks to Spotify those days are now over. Instead of having to find space to store your music, Spotify manage a vast library of more than 390 million songs that is constantly updated. Being able to search for and find any song you can think of feels almost magic-like. Instead of juggling CDs, Spotify streams music over a broadband connection to a connected media player or smartphone. www.spotify.com

FMCG BUSINESS - JULY 2017

The internet is a dangerous place. Recent cyber-attacks such as the Wannacry ransomware attack that encrypted and locked up infected PCs until a ransom was paid brought many businesses to their knees. The really frustrating thing is that these attacks are easily avoidable. Simply install and update a decent internet security package such as Norton Internet Security. With one of the best malware/virus detection rates in the industry, Norton Internet Security also comes with an industrial strength firewall to keep intruders out of your PC as well as PC tuning and backup utilities. The premium version of Norton Internet Security can be installed on PCs, Macs, Smartphones or Tablets. www.symantec.com

[ gear ]

Samsung Tab S3

Better Wifi Wifi dead-spots are an annoyance and yet they’re easily avoidable using the Linksys EA7500-AU Router and AC1900 MU-MIMO Range extender. While the EA7500 is designed to take advantage of MUMIMO to deliver high speed Wifi to MU-MIMO compatible devices, there’s another nifty trick. It’ll pair up with the AC1900 range extender to extend Wifi coverage. Where most range extenders create a second network (which can create a confusing mess), the AC1900 and EA7500-AU combo delivers a single seamless network that is a doddle to set up and can be remotely monitored using a smartphone app. http://www.linksys.com/us/p/P-EA7500/

Featuring an ultra slim design and a drop dead gorgeous OLED HDR compatible display, Samsung’s latest Tablet comes with a stylus. It’s ideal for budding designers or those who simply want to scribble quick digital notes. Samsung galaxy owners should note that it integrates with the S8 so you can switch between the two and keep using the same apps and get the same notifications. A keyboard accessory also transforms it into the perfect lightweight travel companion. http://www.samsung.com/nz/tablets/

Is this the cheapest HD TV in NZ? DSE have launched a 42” LED backlit HD TV available from their online store for a wallet-pleasing price ($549). As well as built-in Freeview, the DSE TV can also record content to an attached USB drive and has four HDMI inputs. Available as a freestanding model using screwin feet, or wall mounting (using a bracket purchased separately), the DSE TV offers great value for money. https://www.dicksmith.co.nz/dn/ buy/dick-smith-42-led-tv-full-hd/

FMCG BUSINESS - JULY 2017

SENSIBLE FOOD SHOPPING AT CHEAP PRICES Notes from the retail front line.

top, and think about the entrance to your local supermarket for a moment. What do you see? Are you in the fresh produce department? Do you see large mounds of brightly coloured fruit? Then, are you drawn in to fresh, red meat, or maybe the aroma-rich bakery? These are powerful and deliberate sensory marketing triggers that encourage us to buy more. Why do they work? It seems that our brains have developed a lot slower than our shopping environments. We are mentally programmed to live thousands of years ago in a time when food was scarce and most of our time and effort was dedicated to hunting and gathering food for our survival. 12

FMCG BUSINESS - JULY 2017

Consequently, when we see brightly coloured sweet fruit and high-energy foods in abundance our primitive brains tell us that there is food today that might not be available tomorrow; and so we should stock up while we can by filling that enormous trolley. Humans are a visually dominant species, and one of our most powerful drivers of behaviour is our ‘visual hunger’. Put simply, we are hard-wired to love the sight of food. Brain scanning research (Pursey et al, 2014) has shown that our brains literally light up at the sight of food – in the reward processing centre, the reinforcements and adaptive learning centre, the emotional processing part, the recollective and working memory, as well as the motor learning, decision making and overall prefrontal cortex control centre.

[ marketing ]

ADJUSTING THE YELLOW COLOUR OF A LEMONADE LABEL CAN MAKE IT TASTE MORE LEMONY.”

While our brains retain a primitive response to food, our modern lives have developed sophisticated ways to indulge in this pleasure. We graze across an ever widening array of international flavours and delicacies, we can’t get enough of cooking reality TV, and it seems that no decent meal can go un-photographed and shared on social media.

Stimulating hungry brains The power of our visual hunger also has the ability to leap across time and space through a process known as ‘sensory transference’. This means we don’t even need to have food in front of us for it to work its magic on us. Images of food packaging, or magazines, food video, advertising, and even the word pictures painted by seductive restaurant menus is enough to stimulate our hungry brains and turn our saliva glands on. Sensory transference is also the process by which our brains interpret food values. Research by Charles Spence, professor of experimental psychology at Oxford has shown some fascinating insights into how our brains interpret the way that food is presented (from an article in The New Yorker). • Strawberry flavoured mousse tastes 10% sweeter when served from a white container rather than a black one. • Coffee tastes nearly twice as intense but only two-thirds as sweet from a white mug rather than a clear glass. • Adding two and a half ounces to the weight of a plastic yoghurt container makes the yoghurt seem about 25% more filling. • Adjusting the yellow colour of a lemonade label can make it taste more lemony. • Changing the shape of chocolate blocks from a square shape to a rounder one makes them taste sweeter. • Presenting soup in a blue container makes people interpret it as significantly saltier.

His research is also not limited to the power of sight over food interpretation. Sound can also have a significant influence on how food is interpreted. • Raising the volume and pitch of the audible crunch of Pringles increases their perceived freshness by 15%. • Brand names with a hard ‘k’ increases their perceived bitterness, while brands with a soft ‘b’ increases their perceived sweetness. • Playing music with food can intensify its perceived flavour. So, what can we make of all this? It seems that when it comes to food, people are a complex recipe of primitive unconscious urges wrapped in sophisticated modern lifestyles. The challenge for food manufacturers and marketers is to be clear about how they want their products to be interpreted by shoppers and consumers. Food demand is driven more by sensory enticement than rational logic. At Energi we help our clients make their food tastier to the eye. And maybe the title of this article is all wrong? Instead of ‘Sensible Food Shopping At Cheap Prices’, it should be more like ‘Sensory shopping with seductive images’.

ARE YOU UTILISING ALL THE SENSES THIS CHRISTMAS? Gain insights from our 2016 Energi Christmas Shopper Report to maximise your Christmas activity. Contact Lew at lew.bentley@energi.co.nz

Shopper marketing specialists since 1984

energi.co.nz Lew Bentley Head of Shopper Marketing Strategy Energi lew.bentley@energi.co.nz FMCG BUSINESS - JULY 2017

FMCG Magazine 1/3 PG Vertical Ad 57mm x 270mm Christmas 22/06/17 Shopper 11:20 AM 2.indd

[ export ]

DIY distribution key to success for Olivado

Catherine Beard is Executive Director of ExportNZ, which serves its members via regional offices throughout the country. To find your nearest office go to www.exportnz.org.nz

upply and distribution are two of the biggest issues Kiwi exporters are faced with, especially when it comes to food and beverage products. I caught up with Jason Vokes who runs the New Zealand operations of Olivado from Kerikeri, to learn how this company has overcome both issues to grow into the biggest producer of organic avocado oil in the world. Olivado was set up in 2000 by a group of people, including the current CEO Gary Hannam. After about five years, it became apparent that the business model needed reviewing. Volumes hadn’t increased a great deal, high costs of sourcing oil and pursuing distributors in each market meant the product had a very high price once on the shelf overseas. Hannam had always wanted to go direct to supermarkets, and in 2009 he took over the business. The turnover then was about US$1M worldwide, now it’s up to US$10.5M. “He has achieved this through a) pursuing the bulk oil market and opening up organic sourcing in Kenya, and b) opening our own marketing companies in Europe and the States,” says Vokes. “We now have one person in each market who is solely responsible for selling, but we use service warehousing and bottle and distribute the product ourselves. The result is that the product is competitive in the local markets against the equivalent quality olive oil. “We learnt the only way to be price competitive was to keep control of our distribution costs.”

Kenya came about through solving the supply problem, as NZ has a relatively small avocado crop, and an irregular supply, in 2010 the company looked around the world to find another crop. It opened a factory in Kenya, contracting 1800 local farmers to produce organic avocadoes, which are then pressed for oil. Olivado is now the largest producer of organic avocado oil globally – about 96% of the world’s supply. It has produced 150 metric tonnes of conventional avocado oil in NZ this year, and 300 metric tonnes of organic oil in Kenya this season. It also bottles organic oil in the UK to supply supermarkets, and has a service warehouse in Finland that supplies European supermarkets. The other part of the business is bulk oil, selling organic avocado oil to the large cosmetics companies and companies that broker oil to other companies. The Kerikeri factory processes NZ avocado oil and bottles it for the rest of the world. It’s also where customer service and global sales and marketing is done – appealing to the healthconscious and foodie markets. “People aren’t deep frying like they were, so they aren’t buying cheap, higher volume oils so much,” says Vokes. “The Olivado brand stands for high quality culinary oils, with health and dietary benefits. We also produce organic and fair trade products where possible.” As for the future, he says they could sell three times the amount of oil they currently produce, so are actively looking for a way to increase their supply. “We’re cultivating a new crop in Tanzania and will be opening a pressing plant there in the next 12 months. We’re also moving into the Australian market, and will continue to grow our customer base in Europe and the US.” So, as production expands and mouths around the world need feeding, the global Olivado story looks set to continue well into the future.

Jason’s tips for Exporters

Jason Vokes, Acting GM at Olivado

FMCG BUSINESS - JULY 2017

• If possible, control the distribution chain yourself. You may need to run at a loss for a while, but it means you can compete at the right price in the market, especially if you’re an FMCG company. • Otherwise choose a distributor that has demonstrated success with a similar product or within the right channels for you, and talk to them openly about costs – theirs and yours.

[ in season ]

Warm up with winter produce

s we head into winter’s cooler months, fewer new varieties of fruit and vegetables are appearing in-store. But there is still a great selection of produce to choose from. Here are the top picks for July.

Citrus Winter is citrus season and that means lots of great-tasting, immune systemboosting fruit. Look out for Kerikeri-grown mandarins and lemons on the shelves, along with navel oranges from Gisborne. An exciting development is a new variety of navel orange. Smaller and sweeter, this new orange is a great snack and school lunch box filler. When arranging citrus, make sure the trays have plenty of fruit. A full, bright and vibrant display of fruit is more

appealing to customers. Rotate fruit and place older fruit on the top and front of the display, filling the bottom of the tray with new fruit. Remove any fruit that has a dry or dehydrated appearance.

Root crops Wintry nights are perfect for enjoying comfort food such as roasts, casseroles and crock pot meals. Root crops such as potatoes, parsnips, pumpkins, carrots, yams, swedes and beetroot are ideally suited to roasting and braising because these cooking techniques intensify the vegetables’ natural sweetness. They are also great additions to soups and stews. These tasty tuber and root vegetables add a wide variety of nutrients, colour, texture and flavour to winter dishes.

From a local fruit shop to a global business. We’ve come a long way since 1897.

Vegetables Broccoli, beans and capsicums are plentiful this month. Healthy and tasty, beans are best eaten when they are young. A fresh bean should make a good snapping sound when broken. The best capsicums should be well shaped with firm, shiny skins. Avoid any with soft spots or a shrivelled appearance. Because severe weather conditions have affected the supply in Australia, some capsicums will be sourced from the Netherlands. However, courgettes from Australia will be in good supply over winter. Also good in July: squash, butterkin, green and gold kiwifruit, New Zealandgrown apples and fruit imported from California. To become a member of United Fresh, visit www. unitedfresh.co.nz.

When Edward Turner established Turners and Growers in 1897, he could scarcely foresee how successful his produce business would become. Today, we’re known as T&G Global. And globally is where we grow and sell, from the Americas to Europe, from Asia to Australia, and in our original home in New Zealand. It makes us this country’s biggest exporter of fresh fruit and vegetables and a considerable grower in our own right. It also means we deliver fresh, healthy fruit and veggies year-round across New Zealand, from kiwi growers and our partners abroad, to customers. We do all this with what we call a passion for freshness and a profound respect for the land, our customers, growers, and our people. It’s a way of doing things that has ensured our success over those many decades. So, we’d like to say to all our friends in business, all our growers, suppliers, partners and customers: thank you for 120 years.

www.tandg.global

Phil and Kirsty Greer, JAZZ™ apple growers

FMCG BUSINESS - JULY 2017

CAKES, BISCUITS & CRACKERS

Highlights from popular categories in our supermarkets.

Love Pies has made an entry into the biscuit aisle with their I Love Baking range of cookies. Continuing its focus on making real food with no nasties for busy New Zealanders, co-founders Maree Glading and Jessie Stanley say the company’s move marks yet another milestone. “We wanted to create a better biscuit like you would make at home.” “We love to bake for our children but as working Mothers the reality is that we don’t always have the time to do so, and often feel compromised by what is available to buy. We don’t want to buy biscuits that have long ingredient lists and are made with palm oil and other things that we would never find in our pantries at home. “So our range of I Love Baking cookies was developed out of our desire to create a biscuit that we will be happy to give our own children, and our personal dissatisfaction with the biscuits currently available in supermarkets.” Their range of cookies have only the best ingredients, say Stanley and Glading. “Our I Love Baking biscuits are made with butter as opposed to palm oil. We use unrefined sugar and we’ve been innovative by replacing 20% of the sugar that would normally be used in the cookie with the natural goodness of date puree. We’ve also included the goodness of wholegrain oats.” The cookies have no artificial flavours, colours or preservatives – everything in them can be found in home pantries. They are also made locally in New Zealand. “The high quality ingredients, without any nasties, is something we know consumers are looking for because we are two busy mums too,” say Glading and Stanley. The cookies are available in four delicious variants; Munchy Choc Chip, Coconut Choc Chip, Ginger Ninja, and Manuka Honey Muesli, which includes honey from Manuka Health. They are perfect for lunch-boxes, morning and afternoon teas at home, family outings, sports games or after school activities. Feedback so far from both children and adults has been extremely positive, and the company has been inundated with enquiries about where people can find the cookies. A comprehensive PR, marketing and social media campaign is under way to get the word out about this exciting new range of products. The cookies are priced at $4.99. Glading says: “The impactful and unique packaging has great shelf presence. We are excited about this new launch into a new category and have a great pipeline of innovation planned – so watch this space!” 16

FMCG BUSINESS - JULY 2017

Innovation from Peckish Andrea Crutchley, Senior Client Manager at DKSH New Zealand Limited told FMCG Business: “As consumers continue to seek better for you snacking options, growth in the overall Rice Cracker market is being driven from the emerging better for you segment. Rice Crackers are now worth $42M (MAT to 23/04/2017) – a significant segment in the biscuit category and Peckish sits as the third largest manufacturer within the biscuit category. The better for you segment of Rice Crackers equates to $1.6M TKA (Qtr to 23/04/2017), growing at 23.6% $ sales vs YA and represents 15.6% of Total Rice Crackers. “Capitalising on the position as market leader, Peckish brings innovation to the better for you segment. This will accelerate $ sales and % profit for retailers. Launching mid-June 2017, Peckish has an exciting and completely unique offer; Peckish Vegetable Rice Crackers – available in Peckish Vegetable Rice Crackers with Green Kale, Peckish Vegetable Rice Crackers with Sweet Carrot and Peckish Vegetable Rice Crackers with Garden Veg. Peckish Vegetable Rice Crackers will draw consumer attention back in to the Rice Cracker segment, and will create a halo effect over the wider Rice Cracker market assisting to keep Rice Crackers top of mind,” says Crutchley.

[ category insights ] Sara Lee The Sara Lee brand has launched a few new, on trend flavours to the frozen desserts category in the past year. Lauren Pitman, Retail Category Manager says: “Dessert is a great opportunity to bring people together. Just like other treat categories, such as ice cream and chocolate, people are looking for something new and different to try. New flavours also bring new shoppers to a category as curiosity leads to a purchase opportunity. “Salted caramel and chocolate are a match made in heaven and for winter time we have the Salted Caramel chocolate pudding (launched June 2016). Puddings are a popular dessert, especially in the cooler months. The new flavour has seen Sara Lee puddings grow +38.8% vs year ago (IRI scan NZ Grocery MAT 14/5/17). “The Incredibly Crunchy Sara Lee cheesecake range has also seen a new flavour with Chocolate Orange launched in Sep 2016. After only nine months in market it is already the number 2 variant (behind Salted caramel) (IRI scan NZ Grocery MAT 14/5/17). “New flavours and desserts will be coming later in the year so look out and enjoy dessert – the best part of the meal!”

Ceres Organics A few years ago, it was a normal daily event to enjoy a hot chocolate and a couple of biscuits. Today, it’s more likely to be a cup of green tea and a homemade snack – consumers are becoming increasingly careful with their health and the products they buy. Organic means food nearest to the way nature originally provided it, before things like genetic modification and industrial pesticides (to name just two). For Ceres Organics it also means a holistic approach that honours people and the planet.

NE W

NEW PECKISH VEGETABLE RICE CRACKER RANGE AVAILABLE NOW Contact your DKSH New Zealand Limited representative for more information.

[ category insights ]

THE OVERALL BISCUIT CATEGORY IS WORTH OVER $400M AND GROWING +2.8% ON AN ANNUAL BASIS.” JAMES FORD, BRAND MANAGER AT ARNOTTS

Marianne Weber, Ceres Organics NPD Manager has noticed consumer trends away from ingredients that are white and refined. “We’ve reflected this trend with our Rice Bites. We know that consumers are looking at ingredient lists and they want to see actual food listed, items they have in the pantry. Jasmine brown rice, sunflower oil, natural sea salt – that’s our Original Rice Bites – we like to think we’re meeting the consumer brief,” says Weber. Due to hit stores in August are Ceres Organics revamped Rice Bites. They’re adding winning mainstream flavour Sea Salt & Vinegar and at the other end of the taste spectrum, a subtly sweet Coconut variant. Marketing Manager, Farran McKenzie tells us: “We saw exponential growth of our Rice Cakes when we updated their packaging, so we’re following suit with Rice Bites. They’ll look like a bona-fide part of the Ceres Organics rice snack family.” Fun food fact: In 2016 Thailand’s jasmine rice won World’s Best Rice at the 8th annual World Rice Conference. Ceres Organics has been partnering with Thai rice growers since 2005, this is where their brown jasmine rice is grown and made into their popular Rice Bites, Cakes and Crackers (all of which are gluten free).

Arnotts Brand Manager James Ford told FMCG Business: “The overall Biscuit category is worth over $400m and growing +2.8% on an annual basis, with Arnott’s growing ahead of the market at +5.2%. Powerbrand Tim Tam has delivered +13.8% annual growth, with innovative flavour rotations such as Summer Moments – Choc Pineapple, Toffee Apple, and Mango – driving sales over summer, and more recently Messina Gelato inspired flavours – Choc Mint, Black Forest, Coconut & Lychee, and Salted Caramel & Vanilla – in market now and proving very popular. Arnott’s Tim Tam is supported with TV advertising and an engaging social campaign. “Arnott’s Shapes are also in growth +7.4%, with the return of Originals being well received by consumers who have been looking out for their old favourites – Originals Barbecue, Pizza, Chicken Crimpy, Cheddar, and Cheese & Bacon are now all available, alongside the new Shapes flavours and Light & Crispy range – so there is something for the whole family! Shapes Salt & Vinegar also launched in May for a limited time and is already flying off supermarket shelves. Arnott’s Shapes has been supported by a heavyweight TV and digital campaign from April featuring ‘The Shapesons’ family enjoying their favourite Shapes in humorous everyday situations. “Arnott’s Savoury biscuits also had a boost with crackers and crispbreads being supported with an Arnott’s ‘Cracker Cuisine’ campaign in May and June, including advertising, instore displays and sampling with consumer prizes. As well as driving sales, the campaign was designed to inspire customers with topping ideas for snacks and light lunches for Salada, Cheds, Vita Weat and Cruskits.” Data source: IRI MarketEdge Total Grocery MAT to 28/5/17.

Love NZ Soft Plastic Recycling Programme Many biscuits and cakes are packaged in soft plastic wrapping and the good news is that this lightweight plastic packaging can now be scrunched into a ball and dropped off by shoppers at around 300 stores in Auckland, Canterbury, Otago, Waikato and Wellington. This service is provided by The Packaging Forum in conjunction with Countdown, New World, PAK’nSave, The Warehouse, Farro Fresh, Fresh Choice, Huckleberry and Moore Wilson stores. Lyn Mayes, Programme Manager at the Packaging Forum explains: “An estimated 400 tonnes of plastic packaging is used by biscuit and cake brands in New Zealand every year. That’s a lot of plastic packaging going to landfill which can be recycled if industry gets behind the programme. Around 8% of the branded bags which we collect is biscuit and cake packaging. Griffin’s 150-year history as a favourite New Zealand biscuit brand makes it a natural supporter of the Love NZ Soft Plastic Recycling Programme. The programme is also supported by muesli / snack bar brands Mother Earth, Pure Delish, Hubbards, Kelloggs and Ceres Organics. Other Brands already supporting the programme are Asaleo Care, Birdseye (Simplot), Bluebird, Coca Cola Amatil, Cottonsoft, Farrah’s, Fonterra, Frucor, George Weston, Goodman Fielder, Heinz Watties, Kimberly-Clark, Mars, McCains, Mrs Rogers, Mondelez, Nestle, NZ Post, Pams, Sunrice and Wrigley. Over 200 tonnes of soft plastic packaging has already been collected for recycling. That’s around 55 million plastic bags. This is processed by Replas Australia into benches, bollards, traffic speed bumps and decking, which we encourage brands to purchase to demonstrate their commitment to the recycling programme. 18

FMCG BUSINESS - JULY 2017

Fantastic Rice Crackers Fantastic Rice Crackers are launching a new flavour into the NZ market. Fantastic Rice Crackers are a family favourite as a “fantastic” snack for entertaining, lunchboxes or just when you want to treat yourself to a delicious snack. In 2017 Fantastic is launching another delicious tasting cracker to add to its range: Fantastic Honey & Soy rice crackers. This traditional flavour combination is well loved across Asian style marinades, but this flavour combination is a first for rice crackers. Fantastic Honey & Soy flavour Rice Crackers combine the sweetness of honey with the saltiness of soy to create a delicious salty sweet taste, guaranteed to have you reaching back into the pack for another… and another!

SIGNAGE . STA T IR TREAD . WHEELIE BIN SCREENS . DOG AGILITY TRACKS + MUCH MORE TA

At pure delish their unique and mouthwatering range of bars, biscuits/bites and slabs are still made by hand the oldfashioned way. Every bar, bite and slab is individually weighed, hand-pressed into tins, then baked in the oven by their team of highly skilled bakers. All ingredients are hand-sorted and checked to ensure only the highest quality nuts, seeds and fruits are used. At pure delish they employ people over machines and feel this level of care gives their products the x-factor over others on the market. The company’s ethos is based around making products that first and foremost must taste amazing. Their products are actually filled with ‘real’ ingredients and free from nasties like artificial colours, flavours, preservatives and sulphites. Second to this are the trends and consumer demands for grain free, no gluten, dairy free etc., so many of pure delish’s products offer some or all of these options. The company is constantly looking forward at what customers want and makes sure they keep innovating and tweaking the product range to keep up with this everchanging landscape. Over the coming weeks, pure delish is starting roll-out of new packaging for its biscuit/bites range to offer consumers more convenience with resealable packs along with better brand visibility on shelf. In addition there are two new bites being

Shoppers at Countdown, Pak‘nSave, New World, The Warehouse and selected stores across most of the country can drop off their soft plastic food & grocery bags and wrappers for recycling into valuable new products. Check our store locator to find a bin near you.

If the plastic wrap can be scrunched up into a ball, drop it in a Love NZ soft plastic recycling bin at participating stores

Find where you can recycle at recycling.kiwi.nz/softplastics/store-locator

BOLLARDS . DECKING . TRAFFIC CONTROL . PUBLIC SEAT A ING . EXERCISE EQUIPMENT . FENCING . CUSTOM FURNITURE AT

Pure delish

added to the current range, Spicy Ginger Bites and another, yet to be named, with a distinctive fruity tang! “We are really excited about the release of our new packaging and flavours. Our new ‘Spicy Ginger Bites are an updated version of our extremely popular ‘Gingernuts for Grownups’ biscuit we produced a few years ago. We think these are going to become a big favourite for many consumers when they hit shelves,” says Marketing Manager Amanda Macdonald. The pure delish biscuit/bites and slab range is available through leading independent foodstores and selected supermarkets throughout New Zealand. If you would like further information on ranging please contact Tina Thomas at pure delish, tina@puredelish.co.nz or Geoff Cassin from Selling Solutions, geoff. cassin@sellingsolutions.co.nz.

[ category insights ] NIELSEN DATA Total Supermarkets - CURRENT MAT to 21/05/2017 SDESC

Val Sales

Val % Chg YA

Total Biscuits Incl Rice Wafer Cakes

$410,598,291

2.5

Cracker Biscuits

$111,884,059

6.7

Enrobed Biscuits

$84,642,339

0.1

Plain Sweet Biscuits

$57,576,438

2.9

Rice Crackers

$45,323,384

-3.1

$42,289,037

8.2

Childrens Biscuits

$31,241,179

-1.5

Cream & Jam Biscuits

$21,791,889

5.3

Rice Wafers/Cakes

$11,967,992

0.8

Assorted Biscuits

$3,881,974

-20.7

Total Cakes

$38,287,231

4.2

Slices

$10,012,665

-0.3

Meringues/Pavlovas

$5,882,242

-0.2

Other Types

$5,344,929

9.4

Cakes

$4,080,599

-1.0

Kisses

$3,474,595

17.2

Sponges

$2,121,629

9.2

Plain Cakes

$1,750,384

0.3

Brandy Snaps

$1,477,127

20.0

Fruit Cakes

$1,412,190

-10.6

Loaves

$917,140

-18.3

Other Specialty

$591,898

156.8

Tarts

$410,952

4.2

Iced Cakes

$320,736

60.3

Brownie/Slices

$299,470

38.2

Eclairs

$139,650

3.5

Muffins

$45,821

17.8

Cheesecake

$4,191

255.9

Other Type

$1,012

179.3

Total Frozen Desserts Party

$33,865,477

7.5

Frozen/Chilled Cakes

$2,111,631

34.0

FANTASTIC RICE CRACKERS ARE OVEN BAKED AND MADE WITH THE GOODNESS OF RICE, MAKING THEM GLUTEN FREE.”

Fantastic Rice crackers are oven baked and made with the goodness of rice, making them gluten free. With an increase in the numbers of consumers adopting a gluten-free lifestyle, as opposed to being medically diagnosed with coeliac disease, Fantastic rice crackers are the perfect go-to cracker.

Andre’s Kitchen The Andre’s Kitchen brand has been ticking along since 2011 and currently range through all Farro fresh stores and selected Fresh Choice Super Markets, as well as selected delis and gift basket companies. “We have had a slight change in packaging,” says Owner/ Director Andre Wike. “We are looking to launch our new range of twin-pack 75g cookies in a range of flavours such as Anzac Cookies, Red Velvet, Chocolate Mocha and Chocolate Chip. “The whole low sugar revolution is coming, but we always have said ‘moderation is the key’ and I really do feel if your product visually shows a sense of quality and follows up with a great aftertaste you will keep your customers coming back for more. “Check out our website www.andreskitchen.co.nz and Instagram andreskitchen_nz and facebook @ andreskitchen.nz ,” says Wike. Andre’s Kitchen was winner of the 2011 New Zealand Food Awards Westpac Best Bakery for Ginger Cookies; nominated in the 2012 New Zealand Food Awards Convenience & Meal Solutions Award for Garlic Crostini and nominated in the 2013 New Zealand Food Awards Best Bakery for Chocolate Chip Cookies.

A spokesperson explains: “Fantastic rice crackers are lightly seasoned so as not to overpower the flavour of the dips or toppings. Customer research indicated to us that ‘the right amount of flavour’ was their preference. While this is not a quantifiable amount, we interpreted this to mean enough flavour on the cracker to taste and enjoy on their own but not enough to overpower the dips and toppings that might accompany the cracker. A delicate balance but one we believe we have achieved without forgoing our ‘taste fantastic’ brand promise.”

The FMCG Business team endeavours to produce a monthly snapshot of category news and highlights, based on information from participating clients, plus a table of the freshest Nielsen data available at time of print. If you wish to contribute news for upcoming category reports, please contact trubanowski@intermedianz.co.nz. 20

FMCG BUSINESS - JULY 2017

HEALTH & WELLNESS What’s new in vitamins and supplements? Suppliers share their launches and popular products in NZ supermarkets.

COLD AND FLU IS THE #1 SEGMENT IN NZ GROCERY WITH SALES OF OVER $12.6MILLION AND FOR WHICH HEALTHERIES IS THE #1 SELLING BRAND.” RACHEL MCKENDRY, MARKETING MANAGER – HEALTHERIES SUPPLEMENTS

FMCG BUSINESS - JULY 2017

ealtheries have been taking care of Kiwis for over 110 years. “For so many New Zealand families, Healtheries is a part of maintaining every day health and nutrition. From Vitamins to Tea, KidsCare Snacks, Baking and Milk products, there is something for the whole family,” says Rachel McKendry, Marketing Manager – Healtheries Supplements. “Our range of vitamins and minerals are formulated and made here in New Zealand. We are the market-leading Supplement and Vitamin brand in NZ Grocery with 37.1% market share and growing year on year with retail sales of over $29.9million*. Furthermore, from a Total NZ perspective, combining both NZ Grocery and NZ Pharmacy, we are the #1 brand with 14.4% share. “With being the #1 brand in terms of market sales and #1 brand in terms of trust, we are always looking at ways to continue to grow and ensure we are bringing to market the most relevant formulations to our consumers,” says McKendry. “Recent product launches include new news for winter, where we have expanded on our marketleading Vitamin C range with the introduction of Healtheries Vit C with Superfruits, in both a 500mg and 1000mg strength. Well known as the immunity

vitamin, Vitamin C is a powerful antioxidant that helps relieve cold symptoms - with the added great taste of three Superfruits, New Zealand Blackcurrant plus Acai and Goji. This chewable tablet contains no artificial colours, flavours or sweeteners and is an ideal way to support immunity during the colder months.

[ category insights ] “Cold, Flu and immunity is such an important component of the overall Healtheries brand and one which we continue to see growth in. For this reason, we are investing in a heavily weighted advertising campaign to communicate the launch of these two new products. Cold and Flu is the #1 segment in NZ Grocery with sales of over $12.6million and for which Healtheries is the #1 selling brand with 78.5% share. “Another big project that has recently been undertaken is the relaunch of our Boost Effervescent range. We have ‘Boosted’ our look and introduced new products to the range. Boost’s positioning is around specific conditions such as Immunity, Performance and Energy and now we offer two new products to the range, Cranberry and Focus (memory & brain positioning). Boost is about offering a range of effervescent solutions for those consumers who want to top up their vitamins and minerals in a fun and convenient way. Effervescents are appealing for those consumers who are not your traditional supplement purchasers. “The Effervescent segment is worth over $11.4million and growing at +3.2% vya. Boost is the clear #2 brand and growing ahead of the segment at +4.7% vya. Boost Immunity Orange is the #1 selling Cold and Flu product within Total Dietary Supplements.” She adds: “Healtheries Probiotica 10 Billion has also been recently launched under the Healtheries brand. Probiotics is an exciting growth area within NZ Grocery and one which we would like to continue to grow and invest in. This formula is a great entry level formulation for those consumers new to Probiotics and is a convenient 1-a-day capsule that doesn’t need to be kept in the fridge, like most Pharmacy probiotics.” What are the consumer trends in this category, in her experience? McKendry says: “Natural health continues to grow in a very positive way. The Dietary Supplement market continues to grow as consumers are looking for natural and easy ways to top up their health. At Healtheries we know that you can’t maintain a #1 brand without constantly innovating to meet consumers’ needs. “We have also won the Most Trusted Brand under the ‘Vitamins and Supplements’ category through the Readers Digest Awards 11 years running. The Reader’s Digest survey polls 1,400 New Zealanders on what brands they trust the most across different categories. Topping the vitamin and supplements category for the eleventh time is a real honour. It

is important to maintain a balanced lifestyle and we consider it a great privilege that Kiwis trust our vitamins and supplements when it comes to their wellbeing. We are committed to producing highquality products for Kiwis at every age and stage in life,” says McKendry. * IRI MarketEdge Dietary Supplements Database MAT 30/04/17

Mossop’s Mossop’s, a third generation, New Zealand family owned and operated business, is celebrating 70 years, and is committed to providing consumers with quality products using pure and natural ingredients. Mossop’s latest range of lozenges are manufactured in New Zealand using two key ingredients, UMF10+ Manuka honey, which is world-renowned and laboratory certified for its unique properties, and Propolis, a product naturally derived by the bee and used to protect the hive from bacteria. Gluten free and containing no added sugar these lozenges have a minimum honey content of 82%! “People are aware of their health and what they consume more than ever before. These lozenges provide consumers with an alternative to traditional lozenges made predominantly from refined sugars. They also provide the benefits of both UMF10+ Manuka honey and Propolis making them an ideal choice for winter wellness,” says Venita Fabbro, National Sales and Marketing Coordinator. Mossop’s UMF10+ Manuka Honey & Propolis Lozenges come in four flavours: Propolis, Lemon, Cranberry and Blackcurrant. “The fruit flavours are made from real fruit solids so there is no artificial flavours,” says Fabbro. With luxurious gold foiling, spot gloss and embossing, these products are eye-catching and will stand out on your shelves. Each unit contains 16 lozenges, 12 units per outer. www.mossops.co.nz Contact: John Wade Wade Agencies 021 938 049 jwwade@ihug.co.nz

FMCG BUSINESS - JULY 2017

[ category insights ] Introducing Zealea protein powder

THE NEW ZEALAND VITAMIN CATEGORY HAS GROWN BY $11.2M IN THE LAST TWO YEARS (+16%).” MICHELLE HILKE, RED SEAL SENIOR BRAND MANAGER, SUPPLEMENTS & FOOD

“There is untapped potential and the opportunity to grow the protein powder category, by offering a lower RRP that is comparable to that available via the fast growing NZ based internet retailers offering similar products,” says Matt Bowman of Zealea Health. “We believe there is great potential for growth in this category by attracting customers that are currently only buying these types of protein products online due to a lower price than currently available in most supermarkets and retail stores.” Zealea Whey based Protein drink powder makes a high protein, low carb, 99% fat free shake. Each 1kg bag (RRP of $41.99) contains 33 x 30g serves, which the customer mixes with 250ml water to obtain over 23g protein (over 77g protein per 100g powder). The product comes in a bold custom branded self-standing resealable foil bag complete with scoop. Attractive attributes for customers include: *Attractive price *High protein *Low carb *99% fat free *Easy mixing *Rich on flavours *Nice smooth taste * Cleaner formula “We make the product using local and imported ingredients in our Wellington-based MPIapproved factory in order to meet cost and quality consistencies required,” says Bowman. “We have worked hard to formulate our product with minimal additives for maximum protein delivery whilst not sacrificing taste. Only two ingredients are added to the main protein component of the product (compare that to others). “No anti-caking agents or colours are added and the absence of any thickeners means easier mixing and no ‘slimy’ texture that is sometimes

NIELSEN DATA Total Supermarkets - CURRENT MAT to 21/05/2017 SDESC

Val Sales

Total Health Supplements

$110,345,232

Val % Chg YA 6.2

Vitamins

$38,437,266

3.7

Nutritional Supplements

$15,540,861

0.6

Minerals

$11,820,566

1.9

Herbal Supplements

$6,384,556

-5.6

Tonic Supplements

$15,726

8.8

experienced by users when drinking products containing thickeners such as gums etc. Where possible natural flavours are used, as in the case of our Banana and Chocolate flavours. “We designed this product with the intention to allow retailers and supermarkets to offer an extremely competitive RRP (in line with the popular internet resellers) whilst still providing an attractive margin. “The product is supported by online marketing with the ability to point customers to appropriate stores via geographic ad targeting.” Ordering details: Available in cartons containing 6x retail units. Flavours include Banana, Chocolate and Vanilla. Phone Matt Bowman for more details or to order on 0800 300 009 or 0231 321 123, or email sales@ zealea.co.nz. (Foodstuffs members please note these products are setup within the food exchange system. Article Nos - 5201860, 5201829, 5201830.)

Red Seal “Aging populations, increased awareness in preventative health, and better access to information, are seeing more consumers turning to natural solutions to support their health,” says Michelle Hilke, Senior Brand Manager, Supplements & Food at Red Seal. Hilke explains: “Supplements form a natural part of preventative health, and sales results over the last three years have proven this point. The New Zealand vitamin category has grown by $11.2M in the last two years (+16%). “Red Seal has been an integral part of this industry for 94 years and is one of the market leaders in the NZ Grocery Vitamin Category today, with an extensive array of high quality supplements to support a variety of health concerns. “Successful product launches and renovation of core segments has seen Red Seal’s sales rocket in the last two years, +7.3% in value in the latest MAT well ahead of category growth (+3.6% latest MAT).” Hilke adds: “The launch of the innovative, high potency, Pharmacy Strength range in November 2015 has seen $2.3M injected into the Vitamin Category for Total NZ Grocery. Relaunch of their Vitamin C range with new formulations,

FMCG BUSINESS - JULY 2017

new innovative flavours and improved packaging has seen them contribute the most to Vitamin growth in the latest quarter, with 16.1% share of total Vitamin growth coming from this range alone.” In May Red Seal also launched an exciting range of Effervescent products, which have been brightening shelves and catching the attention of consumers. The Vita Fizz range has four variants: Hydration, Magnesium, Perform and Immunity. The range has no artificial colours or flavours. Data source: IRI MarketEdge (to 14/05/17)

Blackmores CoQ10 Blackmores has launched its CoQ10 150mg into grocery for the first time this year, replacing the very popular Blackmores CoQ10 75mg in the channel. Previously Blackmores CoQ10 150mg was only available in pharmacies. Ash Dharan, Product Manager – NZ explains: “There is increasing demand for heart products in grocery – the heart segment grew 17.6% vs YA while CoQ10 products grew a phenomenal 72% vs YA in this channel! (IRI MarketEdge New Zealand National Grocery MAT 16/04/2017).” Coenzyme Q10 or CoQ10 belongs to a family of substances called ubiquinones. It is a fat-soluble vitamin-like substance that has a powerful antioxidant action and is found in almost every cell in the body with high concentrations in the heart, kidneys and liver. CoQ10 helps to support cardiovascular health by assisting in the normal healthy functioning of the heart. It helps to protect all cells of the body from oxidative damage, in particular the arteries, and also inhibits the oxidation of LDL (or bad) cholesterol. CoQ10 is required for oxygen uptake and the production of energy in cells. Primary dietary sources of CoQ10 include oily fish and organ meats (such as liver), wholegrain cereals, soya beans, nuts and leafy vegetables like spinach and broccoli. “However, CoQ10 levels diminish with age and exercise, so

dietary sources may not be adequate and a supplement may be beneficial,” says Dharan. “Blackmores CoQ10 150mg is a high potency, research based one-a-day formula to help replenish CoQ10 levels and maintain a healthy cardiovascular system and arteries. It is available at selected supermarkets nationwide.”

Swisse Wellness Swisse Wellness has been formulating proven health and wellness products with comprehensive formulas and premium quality ingredients, based on scientific evidence, and building trust with consumers for over 45 years, says Michael Kerr – Country Manager, Swisse Wellness NZ. He explains: “There is a growing demand across the globe for high-quality vitamin, mineral and supplement products that are backed by world-class sourcing and pharmaceutical grade manufacturing. Being leaders in the health and wellness category, Swisse continue to invest in independently verified scientific research, so customers will know the products are of a high quality. “Swisse is committed to investing significant ATL spend into raising brand profile and awareness in The New Zealand market. Localised activity, such as partnering with All Black Captain Kieran Read as the Swisse Ambassador for New Zealand, has seen the brand achieve its highest level of grocery distribution to date. By end 2017 the brand will invest over $1.9M in TV, digital, print and outdoor advertising, attracting more users into the health and wellness category. “Swisse is experiencing growth at nearly double* that of the category at 7.7% (MAT 04/06/17) and has a market share of 9.43% Total Grocery, placing the brand third in the category for the last quarter (QTR 04/06/17). “The Swisse range consists of more than 40 vitamin, mineral and supplement products developed specially for men, women and children, giving retailers and customers the option of choosing a more premium, proven and aspirational offering in store,” says Kerr. *VMS category growth at 3.7% MAT 04/06/17

Show your heart some love with Blackmores heart health range

Always read the label. Use only as directed. Blackmores, Auckland.

BABY CARE New launches and market-leading products drive sales in a multimillion dollar category.

FMCG BUSINESS - JULY 2017

[ category insights ]

ore than 59,000 live births were registered in New Zealand last year – that’s quite a lot of bouncing bundles of joy! New parents are thankful that they can find a wide range of baby care products at their local supermarket, providing an easy onestop-shop for all the essentials a family needs - from nappies and baby lotions to baby’s first bottles, comforters and even toddler cups.

Treasures new Quick-Dry & Comfy Fit nappies Treasures are excited to launch their new and improved Quick-Dry & Comfy Fit nappies. Treasures have been making premium quality New Zealand made nappies for 40 years and the latest design is part of an $11m investment to provide the best possible nappy for Kiwi babies. The new Quick-Dry & Comfy Fit nappy has a more compact absorbent pad which dries quickly and is more efficient at keeping moisture away from baby’s skin. It has been designed to be a better, and more comfortable fit for your baby’s bottom, allowing them the freedom to move, play and explore. NIELSEN DATA Total Supermarkets - CURRENT MAT to 21/05/2017 SDESC

Val Sales

T. Baby Food

$115,453,556

Val % Chg YA 0.3

Nappies

$111,325,316

4.4

Disposable Baby Nappies

$99,278,260

4.8

Infant Formulas

$79,607,245

-2.5

Baby Needs

$42,572,895

2.3

Moist Towelettes

$33,494,498

0.9

Baby Food

$30,467,837

10.3

Disposable Baby Training Pants

$11,928,520

0.6

Baby Accessories

$7,482,479

8.2

Baby Toiletries

$7,434,857

-1.7

Infant Feeding Accessories

$5,369,181

8.6

Baby Rusks

$3,950,206

0.6

Baby Skincare

$3,083,405

14.4

Baby Creams

$2,849,808

8.6

Infant Cosmetic Products

$1,646,122

3.7

Baby Cereals

$1,428,268

-23.2

Baby Medications

$990,316

Baby Jellies

$974,812

8.0

Infant Clothing & Bibs

$318,668

43.6

Infant Toys

$127,478

-9.5

Disposable Baby Nappy Liners

$118,536

42.2

Antibacterial Treatments

$89,729

5.2

Infant Nursing Products

$21,030

16.9

3.7

TREASURES HAVE BEEN MAKING PREMIUM QUALITY NEW ZEALAND MADE NAPPIES FOR 40 YEARS AND THE LATEST DESIGN IS PART OF AN $11M INVESTMENT TO PROVIDE THE BEST POSSIBLE NAPPY.” HEATHER GREAVES, TREASURES MARKETING MANAGER

[ category insights ]

Clinically proven to reduce colic and discomfort Our trusted Classic+ bottle range has a clinically proven, anti-colic system. The unique valve on the teat flexes to allow air into the bottle instead of baby’s tummy. Trusted by mothers since 1984 , our Classic+ bottles continue to be the preferred choice of many mums.

125ml

260ml

330ml

Distributed by Endeavour Consumer Health PH 0800 104 401 Follow us on Facebook www.philips.co.nz/avent

FMCG BUSINESS - JULY 2017

Alongside Treasures’ stringent quality control testing, the new nappy has already been put to the test by Kiwi mums and dads with some fantastic results. Some of the feedback included: “I could not believe the amount of absorbency in the new nappy.” “The new nappy does better overnight and has a nicer fit.” “The new nappy is light, soft and a step up from the original.” There are also changes to pack sizes made possible by a new bagging machine, which enables nappies to be more tightly packed. This has helped Treasures reduce packaging, with the old Jumbo Box replaced by a less bulky and more convenient carry bag with a handle. “We’ve worked very hard to ensure that our new packs will continue to reflect the same value per nappy our consumers expect,” says Heather Greaves, Treasures Marketing Manager. Supported by an innovative TV and digital campaign the new product is sure to be racing off supermarket shelves.

Philips Avent The Baby Accessories category is worth nearly $7.9m per annum and is growing at 5% (IRI MarketEdge Total Grocery Dollar Sales MAT to 16th April 2017), says Michelle Rice, Brand Manager at Endeavour Consumer Health (EBOS Group Ltd). “The Bottles, Teats, Comforters and Toddler Cup segments make up over 60% of the total category dollar sales. “Philips Avent is the market leader in the Baby Accessories category with 31.2% share (IRI MarketEdgeTotal Grocery Dollars Share Quarter to 16th April 2017) and is growing well ahead of the category at 12.9% vs same period year ago. “Philips Avent dominates the comforter (soother) segment with 80% segment share (Dollar Share Quarter to 16th April 2017) with a wide range of translucent, free-flow fashion and night-time soothers for babies. Their new ‘free-flow’ soother shield design features additional holes for improved airflow and comfort while the night-time soother features a convenient ‘glow in the dark’ ring.

PHILIPS AVENT IS THE MARKET LEADER IN THE BABY ACCESSORIES CATEGORY WITH 31.2% SHARE.” MICHELLE RICE, BRAND MANAGER

The journey to independent drinking As your child grows, learning to drink independently is a skill which they need to develop.

“Philips Avent Classic+ range of bottles have been trusted by mums since 1984 and continue to be the preferred choice of many mums. The unique valve on the Classic+ teat flexes to allow air into the bottle instead of a baby’s tummy. The Classic+ anti-colic system is clinically proven to reduce colic and discomfort. Philips Avent have 40% share of the bottle and teat segment in the last quarter driven by their 260ml and 330ml Classic+ bottles,” explains Rice. She adds: “Philips Avent also have a wide range of toddler cups that help develop independent drinking skills including the 200ml and 260ml Easy Sip cup with its flexible soft spout for easy drinking and ergonomic shape for little hands to grip. The revolutionary Philips Avent Grown Up cup with its unique spill proof valve, is lip activated and allows drinking from all around the rim, just like an adult cup but without the mess.”

Our range of innovative toddler cups help you and your little one develop and transition towards independent drinking whenever they are ready to.

12m+ 6m+

9m+

18m+ 18m+

Distributed by Endeavour Consumer Health PH 0800 104 401 Follow us on Facebook www.philips.co.nz/avent

FMCG BUSINESS - JULY 2017

We have New Zealand’s largest FMCG digital audience! eNewsletter

7,300+ Subscribers

Social Media

5,300+

Print Mag + eMag

10,990

7,900+

Monthly

FMCG Business is New Zealand’s leading source of business information for the FMCG industry. Our media community consists of 31,490+ industry professionals. Key decision makers & influencers include: • Supermarket owners • Directors

Website

• Supermarket managers • Producers

Monthly UV’s

In addition www.fmcgbusiness.co.nz is the online content library, and includes an extensive array of news items and content plus an internal search engine. FMCG Business also has a rapidly growing social media reach of 5,300+ followers courtesy of content shared through dedicated Facebook and Twitter pages.

The backbone of the FMCG Business brand is the magazine (11 Issues annually, print & digital). The circulation is 8,000 print copies nationally and 2,990 digital. A weekly eNewsletter keeps 7,300+ opt-in subscribers up to date between magazine editions by featuring the latest news content, tips, trends, events, product releases and giveaways.

Magazine (print & emag) eNewsletter Subscribers Social Media followers Unique Website sessions

35% 23% 17% 25%

25 35% %

17%

Total Audience 31,490+ every month (as of May 2017) To discuss print, digital and social media advertising opportunities contact Joel Bremner - 021 370 065 - jbremner@intermedianz.co.nz

[ what’s hot ]

Pitango

Introducing I Love Baking I Love Pies co- founders Maree Glading and Jessie Stanley have launched a biscuit range called I Love Baking. The cookies are made with the best ingredients and no nasties – 20% of the sweetness is from dates. They contain butter, unrefined sugar and wholegrain oats – no palm oil, artificial colours, flavours or colours. The varieties are Munchy Choc Chip, Coconut Choc Chip, Ginger Ninja and Manuka Honey Muesli. RRP$4.99 www.ilovebaking.co.nz #madebymums

Red Seal Vita Fizz Red Seal’s NEW Vita Fizz effervescent range is super tasty and formulated without Aspartame, sulphites or artificial flavours and colours. The range features 4 delicious variants – Immunity with Blackcurrant, Perform with juicy Orange and Mango, Hydrate with zesty lemon and Magnesium with mouth-watering wild berry. Available in supermarkets NOW! 0800 733 732 www.redseal.co.nz

Pitango is entering into a whole new convenience food category! NEW fresh chilled Pitango Breakfast pots are a ready-to-eat porridge range with two flavours: • Pitango Golden Honey Porridge • Pitango Apple & Sultana Porridge Made with organic steel cut oats, they are a fantastic source of protein and fibre – no added preservatives, flavours or colours. The convenient microwavable pots come with a handy spork. www.pitango.co.nz

Healtheries Green Tea Healtheries Green Tea, nature’s natural antioxidant. Now with real florals, refreshingly sweet and delicate for you to try. Healtheries Green Tea with Jasmine has the delicate fresh fragrance of the jasmine flower. Healtheries Green Tea with Rose has a hint of sweet fig and apple, and the soothing aroma of rose petals. Perfect for refreshing and revitalising the body and mind. Contact Healtheries 0800 848 254

Apple and Banana Blueberry 100% Fruit Bar Introducing a new flavour sensation from Annies that is bursting with pure fruit flavour! Apple and Banana Blueberry was very popular when trialled and tested by consumers. Complementing the range, it is differentiated by its unique banana taste and hit of blueberry. No added sugar. No preservatives. Not from concentrate. Gluten and dairy free. www.annies.co.nz orders@annies.co.nz Phone Antony Burke 021 739 566 FMCG BUSINESS - JULY 2017

[ good business ]

Sustainable living brands deliver 60% of Unilever’s growth Six years into its ambitious Sustainable Living Plan, Unilever has announced it is on track to meet most of the 50+ targets, with its ‘Sustainable Living brands’ driving sales and adding value for the business. Unilever revealed that 18 sustainable living brands, including Dove, Lynx, Surf, Continental and Ben & Jerry’s, delivered over 60% of the company’s total growth (up from 46% last year) and grew more than 50% faster than the rest of the business in 2016. Unilever New Zealand Managing Director Nick Bangs said: “We have made great progress. Our results show that sustainability is good for business, with increasing evidence that our ‘Sustainable Living Brands’ do better. “There is no doubt that the Unilever Sustainable Living Plan is making us more competitive, helping us to grow our brands and become more innovative. At the same time, we are strengthening our supply chain to reduce our risks, lower our costs, and build trust in our business. It is helping Unilever to serve society and our many consumers, and in doing so, create value for our shareholders.” As part of the efforts to progress its commitments on sustainable

living, Unilever commissioned consumer research to better understand some of the issues that are driving people’s purchasing behaviour. The research showed that over half of all consumers already buy or want to buy sustainably. One in three (33%) already purchase products with sustainability in mind, and a further 21% do not currently, but would like to. The Continental brand continues to help farmers in New Zealand and Australia develop their ideas and fast-track the implementation of more sustainable farming practices. To date, 88% of the ingredients used in local Continental products are sustainably sourced, including 100% of wheat, tomatoes and pumpkins. Unilever also said it is making solid progress on reducing its environmental impact, cutting its carbon footprint and developing a renewable energy strategy to meet its 2030 carbon positive ambition. Already 78% of Unilever packaging in Australia and New Zealand is made from recyclable materials with the company now working on developing a roadmap to meet its global 2025 target of ensuring all plastic packaging is designed to be reusable, recyclable or compostable.

Green Ribbon Award for Countdown Countdown’s Food Rescue programme won the Business Leadership category at this year’s Green Ribbon Awards, run by the Ministry for the Environment. The awards recognise the outstanding contributions made by individuals, organisations, businesses and communities to protect and enhance New Zealand’s environment. In the last financial year, waste contributed just 9% of Countdown’s carbon emissions. Since 2006 the company has decreased waste to landfill by 34% despite a 43% increase in supermarket space. Countdown Food Rescue plays a vital role in both reducing food waste and fulfilling a vital social need – to support people in need in communities throughout New Zealand. All Countdown stores nationwide have a food rescue partnership in place which sees around $3.5 million of high-quality surplus food donated to food rescue groups and local foodbanks each year. Countdown’s Food Rescue programme partners with food rescue organisations and foodbanks throughout New Zealand. From its national partner The Salvation Army, who last year provided more than 56,000 food parcels to 28,000 families, to Love Soup Hibiscus Coast, Tokoroa and Rotorua, KiwiHarvest, Fair Food, the Auckland City Mission, Kaivolution, Good Neighbour, Just Zilch, Foodshare, 32

FMCG BUSINESS - JULY 2017

0800 Hungry and Kaibosh – to name just a few. Last year, Kaibosh in Wellington collected more than 78,000 kilos of food from Countdown, which made up about half of all the food they distributed around the city.

(L to R) Hon David Parker and Countdown’s GM Corporate Affairs, James Walker with the award.

 Re ad y t o Ro ast

 Co n v e n i e nt an d e asy

 G ro wn i n so u t h l an d available now in freezers at selec ted sup ermarkets   So Sweet Produce

www.sosweet.co.nz

[ profile ]

STILL FRESH AT 120 YEARS

T&G Global, the country’s biggest exporter of fresh fruit and vegetables, celebrates a big milestone.

EMPLOYING 1300 PEOPLE ACROSS NEW ZEALAND AND 200 OVERSEAS, T&G ALSO RECRUITS AROUND 2000 SEASONAL WORKERS EACH YEAR.”

&G Global celebrated 120 years in business with a fabulous party in Auckland recently. Karena and Kasey Bird (Masterchef New Zealand winners 2014) created a mouthwatering menu showcasing the best of T&G’s produce for the occasion. New Zealand growers, customers, suppliers and staff, including one who has worked for T&G for 63 years, enjoyed the menu based on fruit and vegetables from some of T&G’s 1000 growers. It’s not often a business celebrating 120 years of business can say it’s still fresh to the core, but for one of New Zealand’s largest fresh produce growers – it’s the truth. Turners and Growers was founded in 1897, changing its name to T&G Global in 2014 to reflect its growing global footprint. Innovation has continued with T&G recently launching New Zealand’s first lower carb potato (Lotatoes) and revolutionising the tomato category with its bitesized Beekist and Ruby’s brands. The secret to T&G’s longevity and success? Keeping fruit and vegetables consistently fresh, responding to changing consumer needs and adhering to its original business philosophy, as set down by founder Edward Turner who said; “Our industry is vital for healthy living and is essential to mankind and does no one any harm.”

Edward Turner and sons, the original founders of T&G Global.

Alastair Hulbert, T&G Global CEO says: “Edward Turner was certainly ahead of his time in many ways, establishing a flourishing fruit and flower business on ‘K Road’ in Auckland in 1897 with the support of his nine sons. Fast forward to 2017 and T&G has a footprint the length and breadth of New Zealand plus 12 offices offshore delivering the best of New Zealand to Kiwis, and the world, and importing what is needed to provide people with fresh produce every day, everywhere. “We are proud to champion the best of New Zealand and grateful for the support Kiwis – including our passionate growers – have given us over the past 120 years. We’re looking forward to continuing our strong relationships and enabling Kiwis to eat healthy food and enjoy an active lifestyle for many years to come.” Employing 1300 people across New Zealand and 200 overseas, T&G also recruits around 2000 seasonal workers each year and is on target to achieve $2 billion in revenue by 2020. T&G is the country’s biggest exporter of fresh fruit and vegetables. Total New Zealand horticulture products recently exceeded $8 billion for the first-time outdoing wine exports and making the industry’s target of $10 billion by 2020 a reality.

DID YOU KNOW?

Alastair Hulbert, T&G Global CEO

FMCG BUSINESS - JULY 2017

Earlier this year T&G’s Envy apple was named the favourite of Americans and this month marks 58 years since Jack Turner coined the name ‘Kiwifruit’, starting a billion-dollar export industry for New Zealand.

[ profile ] T&G Global celebrated the occasion in style.

Karena and Kasey Bird

FMCG BUSINESS - JULY 2017

[ Buy NZ Made ]

Taking care of the most important business

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

f you want to see the definition of hard work, you don’t need to look far past a business owner. Known for putting themselves second to pretty much everything, you’ll find them pouring over the smallest details of their company, running checks to see how healthy their cash flow or inventory is, and doing whatever’s necessary to keep their business in great shape. But how many Kiwis pause to check their most important asset: their own health and wellbeing? The answer, sadly, is not enough. We were reminded of this recently when a Buy NZ Made contact fare-welled a friend who had been moving ‘too fast’ for too long. The loss highlighted the very real and devastating impact stress can have on business and family when endured over long periods. Left unchecked, it begins to decrease our performance and to affect our overall health and wellbeing. In fact, Southern Cross reports that stress is now one of the biggest contributors to health problems, causing up to twothirds of illnesses seen by GPs. With those kind of numbers at stake, identifying stress and taking action should therefore be a priority for everyone – especially those responsible for a business. Some of the most common symptoms of stress include sleep disturbances, irritability and an inability to relax. It can also manifest in muscle tension and pain, headaches or changes in appetite. Over time, this stress can develop into more serious conditions such as hair loss, digestive problems and high blood pressure.

Staying physically active and ensuring you eat a balanced diet is key to managing the effects of stress. Stay away from foods that increase tension SOUTHERN (such as coffee and sugar). If you feel you don’t have time to exercise, that’s probably a good sign that you CROSS REPORTS need to. Exercise releases tension and increases our THAT STRESS IS ability to handle stress, offering a double whammy NOW ONE OF result for your time and effort. Buy NZ Made members also offer a range of THE BIGGEST products that can help to reduce stress, which you CONTRIBUTORS can find at www.buynzmarket.co.nz. For example, Naturo Pharm offers a range of TO HEALTH homoeopathic sprays to calm your nerves, and PROBLEMS.” if you’re lucky enough to have a partner who’ll indulge you with a back or shoulder rub, start with a bottle of massage and body oil from Revive and Restore. Or you could think outside the square completely Journey to wellbeing and invest in a hula hoop from In2Hula – five As always, one of the best places to start on your minutes of old-fashioned fun can raise your heart journey to wellbeing is with a health professional. rate, trim your waist and leave you with a smile and Consider getting your blood pressure checked and a refreshed sense of perspective. booking in for a health check once a year. The options are endless. Head out for a run or walk, give yoga, meditation or massage a go, consider taking a stress management course, or seeing a counsellor. • Use of the iconic “Kiwi in a triangle” logo on • Trade Show/Exhibition assistance Whichever you choose, it products and marketing • Networking and business doesn’t matter – the point is that • Facebook competitions development opportunities you do something that works for • Product/business listings on buynz.org.nz • Advertising and publicity you. The consequences of doing • Inclusion in promotional emails nothing just aren’t worth it.

Buy NZ Made member benefits include:

FMCG BUSINESS - JULY 2017

[ cover story ]

Exciting news from CottonSofts! New Zealand. With factories in Dunedin and Auckland Cottonsoft have been a proud provider of Kiwi Jobs since 1986.

CottonSofts supports Bowel Cancer New Zealand

THE NEW PACK HAS A SMALL FOOTPRINT SO IT’S VERY SHELF AND DISPLAY EFFICIENT FOR RETAILERS.”

102mm

RECYCLE

SOFT PLASTIC PACKAGING

50mm

ottonSofts has been a part of the New Zealand market since 2002 and grown to be a strong brand in the Toilet tissue aisle. Now CottonSofts has a new exciting variant: The new XL pack. The new pack has a small footprint so it’s very shelf and display efficient for retailers. The new XL pack also provides consumers with even greater value and convenience: • More rolls for the same price, providing additional value for consumers • More convenience – less roll changes • Compact diameter means it still fits in consumers’ toilet roll holders • Consumers “really connected to the packaging” in recent qualitative research* • Consumers love the simplicity of XL and the great value it delivers*. The Double and long roll segments of the toilet tissue category are now 26% value share (IRI value share MAT to 07/05/2017) and are in strong growth (22% MAT $ growth

The long term partnership with Bowel Cancer New Zealand includes a collaborative approach to projects, including Bowel Cancer awareness month in June annually, plus bespoke packs to raise money over and above the sponsorship. New Zealand has one of the largest rates of bowel cancer in the developed world. The number of New Zealanders who die each year of bowel cancer is as many as those who die of breast and prostate cancer combined. “However, 75% of bowel cancer is curable if caught early enough, so we are pleased to try to be involved in awareness and early detection,” says Senior Brand Manager Denise Calver. For more information visit www.cottonsoft. co.nz or www.beatbowelcancer.org.nz *Consumer qualitative research - Energi April 2017

IN THIS STORE

Toilet tissue packaging Paper towel packaging

vs YA -IRI Mat to 07/05/17). CottonSofts XL will help drive this growth further. Strong support for CottonSofts XL is following with TV, online, trade media, and consumer promotions. CottonSofts is owned by Cottonsoft Ltd - a New Zealand operated and managed tissue converting company that manufactures and distributes leading brands throughout

Plastic shopping bags

DID YOU KNOW? Cottonsoft Ltd is also proud to be a foundation member of the soft plastics recycling scheme. Over 25 million plastic bags have been recycled – that’s about 100 tonnes of plastic, which would have otherwise gone into New Zealand landfills or the environment.

The CottonSofts brand is proud to be a key sponsor for Bowel Cancer New Zealand.

FMCG BUSINESS - JULY 2017

[ FGC ]

Promoting basic food skills at school

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

FMCG BUSINESS - JULY 2017

this demise has some part to play in the rise in was sorting through some old boxes of recent years in our rates of obesity. books recently when I came across my Home Prominent nutritionist Claire Turnbull, speaking Economics book from school, or as it used to recently on health and wellness, summed it up be called “Manual Training”. I think it was about best when she said, “The biggest problem in New Form 1 (today’s Year 7 equivalent). And the cover Zealand is people can’t cook”. What she meant was page? ‘Cooking Is Fun!’ that if you are cooking a meal at home, and then Inside were many recipes and cooking tips we sitting down and eating it as a family, it will more had been taught by our Home Economics teacher likely than not be a much healthier meal than just Miss Flower, with one page even bearing the burn going into the fast-food drive-in down the road. marks from where a hot pan or pot had been I believe she’s right. If everyone shopped at placed on it. I’m not sure if that was by design the supermarket, knew the basics about cooking or accident, but what I am sure of is how much and prepared their meals at home, and ate them I enjoyed those classes and learning the basics of with the family then we’d be cooking – key skills for life. much further ahead in the fight My carefully crafted notes, against obesity. supplemented by drawings and Schools are in the perfect position pictures cut from magazines, to impart these skills and push covered everything from how to the important messages, and the make no-yeast hot cross buns, industry is doing its bit, with several soups, toad-in-the-hole, and how THE BIGGEST supporting classes on how to make to cook all variety of eggs, to how PROBLEM IN healthy food choices and how to to best store and prepare and cook meat, options for cooking NEW ZEALAND prepare simple meals. The industry as a whole is keen for invalids, food safety, cutting IS PEOPLE to promote knowledge around and preparing veges, and even an explanation of digestion and the CAN’T COOK.” healthier choices, which is why the Food and Grocery Council type of foods that help this the best. supports a move by vegetables.co.nz It brought back some great (a collaboration of national vegetable industry memories of exploring the wonderful world groups promoting consumption of New Zealand of food, how to experiment with ingredients, fresh-grown vegetables), in conjunction with and more importantly the basics of healthy the Heart Foundation, to have basic food skills food provision. reincorporated back into the school curriculum. It was certainly a fun and useful part of my Sadly, their research showed that only 13% intermediate years. I know that cooking is still of teachers identified students were able to taught, but it’s not to the same degree, and I began plan and prepare a complete meal as a key to wonder if, somewhere along the line, whether learning objective. As a result of this, they’re advocating that all students (boys as well as girls) be able to cook a healthy meal following the completion of 16 oneand-a-half-hour sessions focused on that. They’re lobbying for government/education authorities to support and encourage schools to ensure that is adopted and that kids can cook, and in so doing make a positive contribution to long-term obesity. They want this to happen by teaching skills such as knife handling; all methods of cookery; food safety, hygiene, washing dishes, crosscontamination; temperature control and kitchen safety; food presentation; economical and realistic recipes; planning and time management; food waste management. Now that sounds a lot closer to how I remember Home Economics at Mosgiel Intermediate – perhaps even better – and I believe it’s sorely needed if we are to have an impact on obesity rates.

[ legal advice ]

FBT for company cars

here are some common misconceptions regarding Fringe Benefit Tax and motor vehicles. The Income Tax Act 2007 covers the application of fringe benefit tax (FBT) to the provision of motor vehicles by employers to employees. FBT arises when an employer makes a work motor vehicle available to an employee for private use, in connection with the employment relationship. FBT arises when the vehicle is made available for use. It is irrelevant whether the employee actually uses the vehicle for private use. Merely sign-writing a vehicle, or satisfying the work-related vehicle exemption (for example because a vehicle is a double-cab ute), does not mean private use can be ignored. Motor vehicle FBT does not arise on a particular day if the vehicle is: • a work-related vehicle at all times during the day; • used by an employee to make an emergency call; or • used by a qualifying employee for certain business travel exceeding 24 hours. To be a work-related vehicle on any day, a vehicle must: • be a “motor vehicle” (i.e. a four-wheel drive, some station wagons, or a double-cab ute). • not be a “car”. If a motor vehicle is designed exclusively or mainly to carry people, then it will not qualify as a work-related vehicle. This includes vehicles that have rear doors or collapsible rear seats. A station wagon will typically be regarded as a car designed

exclusively or mainly to carry people unless there is specific evidence to show the station wagon has been designed equally to carry passengers and goods, or if the necessary alterations have been made to the vehicle to convert it into a work-related vehicle. • display, prominently and permanently, on its exterior, the form of identification the employer (or if the vehicle is hired, the owner of the vehicle) regularly uses in carrying out their undertaking or activity (i.e. name, logo, acronym or other similar identification). Personalised number plates, or a business card affixed to the inside of the windscreen would not satisfy this requirement. Large magnetic door signs would also not satisfy the requirement for the form of identification to be “permanently” displayed. • not be available for the employee’s private use, except for private use that: A) is travel to and from their home that is necessary in and a condition of their employment; or B) other travel that arises incidentally to the business use, such as being on call. An employee may use the vehicle to travel between work and home without generating FBT liability for the employer, if there was a condition of the employee’s employment contract that the work vehicle must be securely garaged at home, and not be used for private use at any other time. If the employer allows the employee private use of the vehicle on the weekends or after work hours, then the employer has liability to pay FBT on the vehicle for those days.

David Hoskin is a Barrister and Solicitor practising in civil and criminal litigation

STEINDLE WILLIAMS LEGAL LIMITED www.swlegal.co.nz

FBT ARISES WHEN AN EMPLOYER MAKES A WORK MOTOR VEHICLE AVAILABLE TO AN EMPLOYEE FOR PRIVATE USE.”

FMCG BUSINESS - JULY 2017

[ events ]

BIG milestone for BIANZ

Teghan Mear Business Development Manager Baking Industry Association of New Zealand

FMCG BUSINESS - JULY 2017

s we enter the 50th year of the Baking Industry Association of New Zealand (BIANZ), we are looking back at the history of our industry and its place in New Zealand. Members of the BIANZ are owners and managers of a wide variety of bakery-related businesses across the country, including bakeries, cafes, wholesale bakeries, catering and pastry cook businesses. Formed in 1967 as the New Zealand Baking Society (and it was known as this until August 2005), BIANZ is about supporting and promoting the baking industry and its products, as well as lead and grow the base of bakers and baking apprentices in New Zealand. As an association our main goals are to: • inform, support and assist members to grow and sustain profitable businesses • promote the baking industry and its products to consumers and stakeholders • provide industry leadership and advocacy • educate the industry and the consumer • grow the industry and the base of bakers and bakery trainees in New Zealand. A main focus for BIANZ is offering value to our members through a number of mediums. Our most well-known source is Slice magazine, which has a distribution of over 2000 per issue. Slice is sent around New Zealand, as well as multiple international locations. We aim to provide support and benefits to members in many areas, including and not limited to: • Members Buying Partner discounts and special offers • Member Discount APP - over 20 suppliers up to 30% discounts • Training support in partnership with Competenz and training providers • Regional events, food shows and bakery tours • BIANZ Custom Food Control Plan (with

MPI for approval) and BIANZ Health & Safety Manual • Media relations, campaigns and digital marketing • Members’ advisory service • Employment contracts and legal assistance • Industry advocacy and leadership Competitions have been a huge part of our history and still have a significant place on our yearly calendar. The New Zealand Baker of the Year® title has always been very much sought after. It was altered to ‘New Zealand Bakery of the Year’ in 2007 and non-members have been allowed to enter since then. We have expanded our competition base to now include: NZ Bakery of the Year, Trainee of the Year, Live Bake Off, Hot Cross Bun and Christmas Mince Pie Competitions. To mark our half century of history we are celebrating in Queenstown, on the 15th and 16th of September. At this celebration, we will be looking back at the last 50 years, as well as looking forward to the next 50 years of our association and the industry. As a nod to the past, we will be holding a BIANZ 50th Year Competition at the Queenstown event. This event will include workshops and a keynote address from former Telecom CEO Theresa Gattung, who is now one of the co-founders of My Food Bag. The formal 50th Celebration Gala Dinner is to be held at Stratosphere Restaurant - a destination celebration not to be missed! Please register soon for this special event, it’s a great way to celebrate with our current and past members. Registration forms for both the celebration and competition are on our website www.bianz.co.nz. If you would like to join us, or have questions about BIANZ or the 50th celebrations in Queenstown, please contact teghan@bianz.co.nz.

EVENT DETAILS Saturday 23rd and Sunday 24th September 9am – 5pm, The Cloud, Queens Wharf, Auckland

IN 3 MONTHS OVER 8,000 PASSIONATE FOODIES WILL GATHER AT THE CLOUD IN AUCKLAND, IS YOUR STAND BOOKED? Don’t miss the chance to sample, test and sell to this valuable audience of food and drinks lovers. Over 50 coffee, chocolate, cupcakes, tea, liquor, bakery and many more Kiwi businesses are already confirmed exhibitors at the show but some stands are still available. All indulgent treats are welcome! With table setups in the Artisan Marketplace from only $325.00 + GST and options in the main hall from $825.00 + GST, The Chocolate and Coffee Show offers producers and manufacturers a truly cost effective way of getting face-to-face with this captive audience.

For stand options and pricing head to www.chocolatecoffeeshow.co.nz/exhibitors

PLUS a stellar lineup of presenters in the Demo Kitchen including Julie LeClerc and Sam Mannering plus a new Barista Zone produced by the team at Barista Academy will keep the crowds entertained with workshops and masterclasses. Julie LeClerc

Sam Mannering

Mike Puru

STAKE YOUR CLAIM NOW FOR A GREAT POSITION AT THE CHOCOLATE AND COFFEE SHOW 2017

FROM ONLY $325.00 + GST in the new Artisan Marketplace through to larger 3m x 3m stands at $1800.00 + GST

To discuss bringing your brand to life at The Chocolate and Coffee Show, please contact Dale Spencer dspencer@intermedianz.co.nz | 021 361 136

[ events ]

Pie Awards judging – behind the scenes.

SUPREME PIES

Thousands of pies will be judged again this month, to find the very best New Zealand has to offer.

he 2017 NZ Bakels Supreme Pie Awards will be presented at a gala dinner on August 1. The Supreme Award-winning pie will earn its bakery stardom and sales beyond belief, as well as a cheque for $7500. There is also a $1000 prize for all Gold Award winners. NZ Bakels Managing Director Brent Kersel says: “Last year a panel of 21 judges spent over 10 hours judging 5284 pies. This year we want the Pie Awards to be its biggest yet as a celebration of the competition and to prove once and for all that Kiwis love their pies! “We’ve seen many success stories as a result of winning the Supreme Award, the most notable being Patrick Lam, who took out the Supreme title again last year, his fifth in the history of the awards. It has boosted his business to where he is about to open another store. Could your pie lift your game to this level? “Of special interest to us in 2017 is the hope that we may find a South Island winner. We know there are some champion mainland pies filled with delicious flavours that we don’t see in the North Island. We need those pies in the competition, and as part of that, we’ll ensure that they are delivered by our staff under tight security to our headquarters for independent judging,” says Kersel. 42

FMCG BUSINESS - JULY 2017

Luck shines on hardworking Supreme winner To Patrick Lam, five times Supreme Pie Awards winner, success is as much about luck as it is about the pies he makes for his business, Patrick’s Pies café and bakery in Bethlehem, Tauranga. But watch him choose a pie to be photographed and the true measure of his commitment to perfection is obvious. It’s in that eye for detail, that questioning of quality, that belief that only the very best is acceptable. That is what makes Lam a winner. Each time he’s won a Supreme Award he can hardly believe luck has shone on him again and that his shop will be flooded with customers for weeks to come. He says: “Every year there are different judges, different groups judging your pie and you don’t know what the judges like, chicken or beef, or what their favourite is, so you go by luck. Lam’s incredible refugee to master baker story started with his journey from war-torn Cambodia to a Vietnamese refugee camp, virtually no formal education and then to find himself in New Zealand, a country where if you work hard, really hard, then fulfilling your dreams is possible. “From the start I dreamed of success. I dreamed of being famous and successful,” says Lam. Starting here with absolutely nothing he set about fulfilling that dream to support his family and give back to the country that has

[ events ] given him so much. You’ll never find an overpriced pie in his café bakery because he believes that would be unfair for his customers. He’d rather make a bit less money and provide them with a great pie at an affordable price. Behind the success of this master baker is a life totally focused on achieving great results that will make his family proud. He knows the sacrifice they all make through the long hours he works and the few breaks he takes. He used to start work at 4am every day. Now, with the help of a baker, he’s eased up for a little while to a 6am start but he’s still working past 5pm most days. And when he gets home he still talks about pies. It’s a seven-days-aweek job and he doesn’t regret a moment of it. So is it really luck that wins the award? Lam says he has no secrets to his pie making he simply uses good ingredients and makes beautiful pastry. Patrick’s Pies usually make 500-600 pies a day per shop, but “the morning after winning it’s 1200 and we can’t keep up. For the first four weeks afterwards we are really, really busy then another four weeks we are steady. For about eight weeks we are on a high from winning before it slows down a bit. We have customers from Dunedin and Christchurch who buy the pies cold to take back to their families and friends. Our pies go to Hong Kong, Singapore, Malaysia, Thailand, and to Australia. They buy from here and freeze them to take as a gift - as something special from New Zealand. It’s pretty good.”

Pies reflect culinary and cultural changes

In 1996, when his company started the NZ Bakels Supreme Pie Awards, most bakeries were producing fairly standard pies filled with mince, steak, chicken or bacon and eggs. And of course apple pies were the number one fruit pie on the market. “Mince was yet to discover cheese, steak hadn’t even heard of caramelised onion, and chicken was yet to be introduced to spices and cream to become the very popular butter chicken. But by 2010 butter chicken pies were huge!” “In 2006 we started to see spices emerging in our Gourmet Meat category with entries such as authentic steak curry and potato; Greek lamb with creamy spinach, roast pimento and feta; and Bombay pork, kumara, onion, pinch of curry with cumin salt and ground pepper. “By 2008 Mexican food was influencing dining and we had a Mexican beef with chilli, red pepper and bean mix filling. We’ve seen trends in using offal in restaurant dining. However, it is one trend that hasn’t come through strongly in pies despite steak and kidney being quite a traditional filling. We did have an entry of minted lambs fry, bacon and mushrooms once. “The Gourmet Fruit category is also proving to be a trendsetter. We’ve seen the use of various alcohols in poaching or enhancing flavour. And of course everybody fell in love with salted caramel in 2015 so it was only natural that we would receive a vanilla bean, poached apple and salted caramel pie.” Kersel says: “We can’t wait to see what bakers come up with this year. We have the best produce in the world; that combined with cultural influences means it can only lead to great-tasting pies. Bring on judging day (July 27)!”

THE SUPREME AWARD-WINNING PIE WILL EARN ITS BAKERY STARDOM AND SALES BEYOND BELIEF, AS WELL AS A CHEQUE FOR $7500.”

Twenty-one years can make a huge difference to what we eat; in pie fillings our tastes have changed dramatically to reflect New Zealand’s food evolution. As NZ Bakels prepares to celebrate its 21st NZ Bakels Supreme Pie Awards, Kersel wonders whether current trends such as turmeric and cauliflower as health foods, goat’s meat, purple vegetables or Filipino and Maori cuisines will be evident in this year’s pie entries. “As new food trends have altered what we eat in our everyday diet, so too have the ways they are presented. While they may first appear as restaurant food from various cultures such as Indian, Thai, Mexican or Vietnamese, they often evolve to new pie fillings where trend meets convenience,” Patrick Lam, five times Supreme Pie Awards winner, with celebrity judge Mark Southon. says Kersel.

FMCG BUSINESS - JULY 2017

[ events ]

Food Show to be flavour of the month

alling all foodies – New Zealand’s biggest food event is back with abundance – so get ready to get stocked up at The Food Show! Taking place at ASB Showgrounds from 27 - 30 July 2017, The Food Show Auckland will showcase the freshest, trendiest and most inspiring produce and ingredients around - not to mention all the must-have gadgets to take your kitchen to the next level. Expect to be taken on an Annabel Langbein will be providing incredible culinary journey. live cooking demonstrations. Whether you’re into craft beers, love the buzz of the vibrant street food scene or like trying the latest health food trends – all tastes are covered. In addition to general entry to the show, you can immerse yourself in foodie heaven away from the crowds; get a Preview Day ticket, or opt for the ultimate gourmet experience with the VIP Lounge - be quick though, as VIP tickets are limited and will sell out! In between all that shopping, be sure to sharpen up your skills by visiting the Cooking Theatre where New Zealand’s very own free-range queen, Annabel Langbein, will be providing live cooking demonstrations. Annabel will be joined by Simon Gault, Michael Van de Elzen, Annabelle White, Ray McVinnie and many more. Dairy lovers will be pleased to know there’s a brand new area launching – The Huntley & Palmers Cheese Alley. Here you’ll experience some of the best cheese makers and suppliers from New Zealand and beyond! When you’re feeling thirsty from all that walking, shopping and eating, hop on over to Brewer’s Lane – a unique new zone that brings together the best craft brewers around. Then wander over to The Artisan Village where you can try and buy delicious treats that are traditionally handmade using the highest quality ingredients. Street Food Alley offers the latest trendy eats – tacos, Vietnamese, dumplings and a cheese truck that takes melted cheese to a whole new level! After all that indulgence, finish your day off with something more virtuous in the Healthy Hub, including the new Ceres Organics Healthy Hub Kitchen. Online tickets start at $26 adults, $14 for under 12s, while under 5s are free. www.foodshow.co.nz

FMCG BUSINESS - JULY 2017

Events 2017 JULY 28-31 THE FOOD SHOW AUCKLAND ASB Showgrounds Auckland, NZ www.foodshow.co.nz

AUGUST 1 NZ BAKELS SUPREME PIE AWARDS www.nzbakels.co.nz 23-24 C&I EXPO Co-located with AACS Convenience Leaders Summit, AACS Peter Jowett Convenience Industry Awards Judging and AACS Gala Awards Dinner Sydney, Australia www.candiexpo.com.au 30-1 SEPT. Anufood Peking, China www.anufoodchina.com

SEPTEMBER 2 GROCERY CHARITY BALL The Langham Auckland, NZ

23-24 THE CHOCOLATE & COFFEE SHOW The Cloud, Auckland, NZ www.chocolatecoffeeshow.co.nz

OCTOBER 7-11 ANUGA Cologne, Germany www.anuga.com 28-29 Healthy Food Guide LIVE! Incorporating the Gluten Free Food & Allergy Show Pioneer Recreation & Sport Centre, Christchurch www.healthyfoodlive.co.nz/ directory/gluten-allergy-show

NOVEMBER 1-3 FGC CONFERENCE Wellington, NZ www.fgc.org.nz 25 AIR NEW ZEALAND WINE AWARDS Taradale, NZ www.airnzwineawards.com

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

[ social sphere ]

Out & About

Chef Simon Wellington, Celebrity At the Food Show in g demo. ‘mystery box’ cookin of e styl new a ted Gault hos

The team celebrates the opening of their new Countdown in Ashburton.

nd CEO Chris Quin (R) Foodstuffs North Isla Operator in Taranaki, ut cko Che top with the h. ’nSAVE New Plymout PAK from per Coo Kirsten

SNAP & WIN!

Helicopter pilot Jim McMillan runs Hawkes Bay business True Honey, which won the Packaging Category prize at the 2017 Pride in Print Awards.

Has your team moved to new premises, or been part of a fun event, great harvest, or promotional activity? Send us your favourite snapshots to be in the draw to win a Cadbury Coco prize pack featuring the new special edition Sea Salt & Pecan ﬂavour alongside the classic dark chocolate ﬂavours that make up the Cadbury Coco range; 70% Cocoa, Mint, Orange and 86% Cocoa. Cadbury Coco’s premium new dark chocolate combination of salt and crunch is the perfect touch of luxury this winter.

Just email your high res image with a caption to trubanowski@intermedianz.co.nz FMCG BUSINESS - JULY 2017

MEET THE WINEMAKER: CLEIGHTON CORNELIUS + MORE

WELLINGTON CRAFT BEER SCENE ■ ALTERNATIVE WINE VARIETIES ■ NZ CIDER FESTIVAL NEW ZEALAND’S LARGEST LIQUOR AUDIENCE

[ editorial & news ]

Mixing it up

The Shout Editor Charlotte Cowan

WHEN YOU live in a country like New Zealand you’re spoilt for choice when it comes to the classics. Sauvignon Blanc, Chardonnay, Pinot Gris – there are hundreds of different choices to pick from. But next time you’re at the supermarket, why not branch a little to the left and try some alternative wine varieties? Grüner Veltliner, Albarino and Pinotage may not be your typical Kiwi drops but New Zealand wineries are growing and producing a number of different varieties to whet your whistle. Wine expert Celia Hay reveals her picks for something a little different on pgs 12-13. Also in this issue, award-winning beer writer Neil Miller takes a look at the exploding Wellington craft beer scene, Nielsen shares some insights on what Kiwis can learn from the U.S. liquor industry and we meet some talented Kiwi winemakers. For even more of New Zealand’s leading liquor news delivered straight to your inbox, head to www.theshout.co.nz and sign up to our dedicated fortnightly eNewsletter. Plus, don’t forget to ‘like’ us on Facebook and check out our brand new Instagram page @theshoutnz.

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

Fine Wines of New Zealand list revealed AIR NEW Zealand has released its list of Fine Wines of New Zealand for 2017 – a compilation of the country’s most prestigious wines. This year, Marlborough Sauvignon Blancs and Hawke’s Bay Syrahs dominated their categories, with a total of 60 wines (and 17 new additions) making the list. The Fine Wines selection is compiled annually by six of New Zealand’s top independent wine experts, including Masters of Wine Alastair Maling, Michael Brajkovich, Sam Harrop, Simon Nash and Steve Smith, along with Master Sommelier Cameron Douglas. “The basis of the Fine Wines of New Zealand classification is to recognise enduring excellence,” says Master of Wine Simon Nash. “This is the achievement of an outstanding record of excellence by top wineries and wines over an extended period.” Wines that made this year’s list include Clearview Estate Winery Reserve Chardonnay, Tohu Single Vineyard Sauvignon Blanc 2016, Felton Road Block 3 Pinot Noir 2014 and Trinity Hill Homage Syrah 2015. Air New Zealand Chief Operations Oﬃcer Bruce Parton says New Zealand produces some of the best wines in the world and food and wine tourism is a key reason why many international visitors come here. “Through this programme, we’re supporting winemakers to achieve greater success and chase the highest quality, whether that be through promoting their vineyards and wines to our customers or helping to open up export opportunities offshore.” For a full list of winners visit finewines.nz

2017 yields smaller NZ wine vintage THE 2017 grape

there were some

harvest has come

challenges as the

in smaller than

season progressed.” In terms of vintage

expected, according to New Zealand

quality, Gregan

Winegrowers. The 2017 Vintage Survey shows the harvest totalled 396,000 tonnes, down 9% on last year said Philip Gregan, CEO of New Zealand Winegrowers. “Given strong demand in overseas markets wineries had been looking forward to a larger harvest this year. With the smaller vintage however, export volume growth is likely to be more muted in the year ahead,” he says. Gregan says the smaller vintage was due to weather conditions. “Generally summer weather was very positive but

says wineries are confident the vintage will deliver the fruit flavours that New Zealand wine is renowned for. “Reports from across the wine regions indicate that generally wineries are positive about the vintage quality,” he says. “However, as always the ultimate test will be how the market reacts to the wines when they are released. At this stage we are confident the 2017 vintage wines will add to New Zealand’s reputation as a premium producer of cool climate wines.”

FMCG BUSINESS: THE SHOUT NZ - JULY 2017

[ news & industry insights ]

Craft beer drinkers judge beer by the label: study

Kiwi brewers win Gold in Australia NEW ZEALAND brewers shone at the world’s largest annual beer competition, held in Melbourne in May. The Australian International Beer Awards describes itself as the ‘largest annual beer competition in the world’, and attracted 2042 entries in this, its 25th year. The most-highly decorated New Zealand winner was Deep Creek Brewing from Silverdale, which won the Trophy for Champion Small International Brewery.

Martin Craig Brewers Guild of New Zealand www.brewersguild.org.nz

Deep Creek won this accolade by collecting a suite of medals for its beers – two Gold, four Silver and three Bronze. It’s a small brewery, but the beer itself has been making some CRAFT BEER sales in the U.S. have grown 65% in the past five years and last year, American brewers debuted more than 2,000 new products in the total beer category (including ciders and flavoured malt beverages), and more than 1,800 of them were craft beers. According to Nielsen’s recent Craft Beer Category Design Audit, 66% of American craft beer buyers say that a beer’s package/label is ‘very’ or ‘extremely’ important for getting them to notice it. Additionally, 60% say that the package/label is ‘very’ or ‘extremely’ important in convincing them to give it a try and buy it. Overall, 71% of craft beer buyers say they like to try brands with bold and interesting packaging. While package and label design is relevant for all consumers, women are slightly more swayed by design than men (75% vs 66%) when it comes to the craft beer category. A study done for the Design Audit found that consumers engaged most with illustrations and logos, and less with package copy. Nielsen says that with the entire beer category growing each year, package design is a key consideration across the board, especially in newer sub-categories that are growing, like cider. “Marketing and label innovation play a significant role in getting noticed and added to shoppers’ carts,” says the Nielsen insights report. “Standing out visually is also important when you consider that beer purchase decisions are more likely to be made at the shelf than overall fast-moving consumer goods purchases.”

FOR MORE INDUSTRY NEWS FOLLOW US ON 4

FMCG BUSINESS: THE SHOUT NZ - JULY 2017

noise. Alongside its core range, it produces three special projects: Steam Funk (experimenting with fermentation); Nero (experimenting with dark malts); and my personal favourite, Lupulin Effect (emphasising hops and IPA styles). These limited-release ranges let the brew team break loose and have some fun, but also demonstrate their brewing chops to beer fans and brewers alike. To put the win into perspective, ParrotDog won the same Trophy in 2015. Since then it’s gone from strength to strength, raised $2 million through crowdfunding, and is currently commissioning a large new brewing facility. Deep Creek Brewing co-founder Jarred Maclachlan is ecstatic about the win. “It is such a great feeling to have our beer recognised and awarded amidst such a strong panel of brewers,” he says. “It is an incredible international platform for Deep Creek and we’re so excited to continue taking our products to the world.” Auckland’s Bach Brewing brought home the Major Trophy for Best Scotch Ale/Barley Wine for its Seamaster Imperial Ale, a velvety and warming American-style Barley Wine with 10.5% ABV. In total, 12 Kiwi brewers brought back at least one Gold medal: Deep Creek, Bach, Epic, Founders, Galbraiths, Lakeman, Black Dog, Sunshine, Mikes, Craftwork, Kereru, and Boundary Rd for packaging. The range of established and new breweries bringing back medals is testament to the quality, calibre and international standing of the New Zealand brewing industry. Martin Craig is a beer writer, journalist and publisher of www.Beertown.NZ

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[ event ]

THE NEW ZEALAND CIDER FESTIVAL The New Zealand Cider Festival is back for its second year in New Zealand’s cider capital, sunny Nelson.

WIN!

We have one double pass to the New Zealand Cider Festival to give away to a lucky reader of The Shout! For details on how to enter, head to www.facebook.co.nz/theshoutnz

About the fest… AFTER A hugely successful event in 2016, the New Zealand Cider Festival is returning to our country’s cider capital, Nelson, this November. Locked in to take place on November 4 at Founders Heritage Park, the festival described by National Geographic as ‘heaven for cider seekers’ - will coincide with the New Zealand Cider Awards on November 3. With a selection of top New Zealand cider makers already on board, including locals Peckham’s Cider and recent winners of ‘The World’s Best Cider’, Zeffer Cider Co, event-goers can immerse themselves in more than 80 cider varieties, plus an exciting line-up of guest speakers, entertainment and artisan food. “We are very excited by the level of interest this event is receiving from both cider makers and consumers,” says Ali Lawley, Nelson Venues Director and Event Organiser. “The industry is embracing the event, creating unique cider products which will be

showcased for the first time at the festival. The New Zealand Cider Festival is already gaining international attention, which is an exciting prospect for the future.” Hamish Jackson, Chairperson of the NZ Cider Association, says the industry is looking forward to taking part in this year’s event. “As being both a producer and the Chairman for the NZ Cider Association, [last year’s event] gave us the opportunity to talk directly to many of our customers we would never get a chance to meet,” he says. “Talking to the other producers on the day, they were very happy with the event, and would definitely participate in the next. For this reason, our industry is looking forward to bigger and better things this year, with discussions around more interesting and unique ciders for the public to try.” The New Zealand Cider Festival is an all-ages event with under 18s free with a paying adult. Earlybird tickets are on sale

The cider

The music and entertainment

Cider is at the heart of the Nelson region; with more than 60% of the industry’s ciders being produced by Nelson cider makers. Cider popularity has doubled in the last five years with more than one in four consumers now including cider in their shopping - but there are still more than a third of New Zealanders who have never tried cider!

A selection of great entertainment will form the framework for a family day out, including excellent music, celebrity talks, tastings and the popular Ministry of Inspiration kids’ entertainment area.

The environmental focus The event continues to work towards zero waste by ensuring food and drinks

Cider New Zealand recognised the demand in New Zealand for a national festival to showcase this growth market to the consumer. Currently cider sales outstrip craft beer, which is represented at a number of festivals around the country. In 2016 they created the first ever New Zealand festival dedicated to cider, which broadened the awareness and popularity of cider, expanding the consumer base and increasing demand. The festival aims to be an annual celebration of the diversity of cider, including both Traditional and New World varieties from around the country. now through Ticketek for $20.00 plus $2.00 booking fee. For more information, head to www.nzciderfestival.com and www.facebook.com/nzciderfest

are supplied in re-useable or recyclable/ compostable containers, including the festival’s souvenir sponsored glass.

The venue The New Zealand Cider Festival is nestled into the historic surroundings of Founders Heritage Park in Nelson. Find out more about the park at www.founderspark.co.nz

FMCG BUSINESS: THE SHOUT NZ - JULY 2017

TAKING THE LEAD IN LIQUOR

Geoff Smith, Director, Business Development, Nielsen NZ, explains what NewÂ Zealand can learn from key trends and innovations in the United States. BIG INNOVATIONS in the U.S. liquor market are creating new avenues for growth; and there are a number of key trends that New Zealand can learn from to boost local liquor sales. Danny Brager, Senior Vice President of Nielsenâ&#x20AC;&#x2122;s Beverage and Alcohol Practice, recently presented the latest trends and innovation shaping his market to New Zealand suppliers and retailers.

A big night out is replace by an easy night in The way people consume alcohol in the U.S. is changing. And the on-premise channel (restaurants and bars), in particular, is feeling the pressure of these shifting dynamics. The cost of purchasing and consuming food and drinks out-of-home is under more scrutiny; while the rise of online shopping and delivery; access to better quality fast food and prepared meal solutions; and just a growing disposition to entertain at home - is taking people away from consuming food and drinks in other establishments. 6

FMCG BUSINESS: THE SHOUT NZ - JULY 2017

[ category insights ]

New channel opportunities – ‘Grocerants’ The growth of the ‘grocerant’ - a hybrid of a grocery store and a restaurant - is in full swing across the U.S. Grocerants span the dining atmosphere, with many offering everything from salad bars, sushi counters, fresh made pizza, cheese and deli counters, upscale in-store dining, to a fully licenced bar and liquor store. These outlets let shoppers stroll the aisles with a glass of wine in hand, giving consumers a relaxed and engaging shopping experience. Alternatively, some outlets offer an app where you can upload your shopping list while a sales assistant gathers your goods, all for the price of a glass of wine or beer that you can leisurely consume at the bar while you are waiting. While grocerants will create tough new competition for fast-food chains and traditional restaurants, it also provides new channel opportunities for liquor brands - both for onsite consumption and retail purchasing.

Ranging new flavours and varietals Launching new flavours has been successful in injecting growth into a mature liquor category like whiskey. Whiskey spiked with flavours such as cinnamon, honey and apple represents 15% dollar

share of the category and is showing annual growth of 11.5% - well ahead of unflavoured (up 5.1%). In the wine category, imported wines account for 30% of the US off-premise market and growing at 4.1%. Varietals from Italy, France, New Zealand and Spain have all grown dollar share in the past year. Within Sauvignon Blanc, New Zealand wine accounts for almost half the market (45%) and growing at 11.3% for 2016 - ahead of U.S. wines in this segment (8.2%). Key trends and innovations in the U.S. liquor market highlight a need to offer consumers new and engaging ways to try, interact and purchase alcohol. Catering for the various demographic groups is also very important. The idea of a grocerant, for example, may be most appealing to Millennials - they can have a fresh and relatively inexpensive meal with their young family, accompanied by a glass of wine, but can pick up groceries at the same time. While Baby Boomers, could be more inclined to shop at a big store with a large range, but expect the help of an experienced salesperson to help with their purchasing decisions. The catch then for marketers, is to stay on top of current trends when they’re hot and not stay in too long when things start to cool down.

KEY TRENDS AND INNOVATIONS IN THE U.S. LIQUOR MARKET HIGHLIGHT A NEED TO OFFER CONSUMERS NEW AND ENGAGING WAYS TO TRY, INTERACT AND PURCHASE ALCOHOL.”

Geoff Smith

FMCG BUSINESS: THE SHOUT NZ - JULY 2017

YOU CAN’T BEAT WELLINGTON ON A GOOD BEER DAY Lonely Planet has dubbed Wellington the ‘Coolest Little Capital in the World’, citing the city’s ‘kickin’ craft beer’ scene as a major factor. Proud Wellingtonian and award-winning beer writer Neil Miller has put in many long hours of research to confirm that Lonely Planet got their assessment totally right.

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

WELLINGTON IS currently the ‘Craft Beer Capital of New Zealand’ but that was not always the case. When I discovered craft beer there were precisely two outlets in Wellington – the old Malthouse on lower Willis Street and Bar Bodega on upper Willis Street. Today, there are more than 20 bars specialising in craft beer. For a time, the region had only two breweries - Tuatara up the Kapiti Coast and Mac’s on the waterfront. Tuatara has since moved to bigger premises but the Mac’s plant was shipped south and replaced with a function centre. Now, there are more than a dozen breweries, including a rapidly growing of number of brewpubs which make beer on the premises. When supermarkets were first allowed to sell beer in 1999, my local Thorndon New World supermarket had 35 brands, only a couple of which could even generously be considered ‘craft’. Yesterday, I counted 698 brands on the shelves. Visiting brewers from legendary California brewery Lagunitas were “completely blown away” by the selection there, and deeply impressed

FMCG BUSINESS: THE SHOUT NZ - JULY 2017

by the craft beer scene in Wellington which they compared favourably to the U.S. West Coast, a global beer destination. Given the growth in demand for quality beer, local businesses got together and created the Wellington Craft Beer Capital online resource to help drinkers locate the best beers, breweries, bars and retailers (www. craftbeercapital.com). The site is constantly updated as new venues are popping up on a seemingly weekly basis. Even I struggle to keep track at times.

The breweries The biggest brewery, at least for now, is Tuatara. Its main facility is located in Paraparaumu, which is within the Greater Wellington region. They have also opened a funky inner city brewpub called Tuatara The Third Eye. I am particularly enjoying Tuatara’s Double Trouble Double IPA at the moment but they are best known for the refreshing Tuatara Mot Eureka (formerly Tuatara Pilsner). In order to triple production and allow

[ beer feature ]

Tuatara Brewing

for further growth, ParrotDog Brewing has moved from a cramped Vivian Street site to Lyall Bay. The company successfully used internet crowdfunding to support this major move. Highlights of ParrotDog’s range include Bloodhound, a smooth, balanced Red IPA, and ClippedWing, a flavoursome mid-strength American Pale Ale. Garage Project is undoubtedly one of the most creative and anarchic breweries in New Zealand history. They have made beer with wine, chilli, chocolate, grape skin, lemongrass, coriander, cherries, coffee, tea, jasmine, orris root (whatever that is), cucumber, mint, lime, almonds, watermelon seeds, green cardamom, pepper, saffron, watermelon seeds... the list goes on. After starting out as a nano-brewery (that is even smaller than a microbrewery), Garage Project has outgrown its petrol station origins. They have opened a bar across the road in bohemian Aro Street but also procured a warehouse dedicated to their wild yeast and barrel aged beer range. It is certainly going to be interesting. Upper Hutt used to be a place that good beer did not go to. These days, there is legitimate talk of an Upper Hutt Brewing Hub with four breweries up-and-running. The local council has been incredibly supportive and the suburb now hosts the Greater Wellington Brew Day festival after it moved from Martinborough. The Upper Hutt breweries are Panhead, which was recently purchased by Lion (try the Vandal NZ IPA or Black Top Stout),

Kereru (recommend the For Great Justice Toasted Wood Fired Toasted Coconut Porter or the Moonless Stout), Te Aro Brewing (I love the Grapefruit IPA), and newcomer Boneface (start with the Boneface India Pale Lager). South of them is Baylands brewery in Petone and it would be remiss not to heartily recommend the outstanding Woodrow’s Veto APA. It is not all good news however. Two small co-located breweries recently ceased brewing. In the case of Wild and Woolly, the brewer is going overseas. Tiamana has decided to return to contract brewing. The pair of them make beers that seriously push the boundaries.

The bars In terms of bars and restaurants, Wellington is spoiled for choice. I could quite easily have filled up the entire The Shout section with descriptions of high calibre venues. I started drinking craft beer at Malthouse and I still do. Massive range of beers (160+), the famous Modus Hopperandus (infused

Rogue and Vagabond

beer with additional flavours when poured) and Ugly Bread. Rogue and Vagabond is a hip dog-friendly venue with fresh beer, big pizzas and live music. The Featherston was my first work local but the beer selection has improved out of sight. They also serve bowls of cheerios – the little sausages that everyone laughs at but no one can resist when they arrive. The Fork & Brewer is a brewpub in the centre of the city. They have nearly 20 beers on tap that are made just metres away from where they are served. Diners should also try the chicken wings made with spent grain from the brewery, and the haggis and pineapple pizza because it is awesome (apart from the pineapple bit – sorry Prime Minister Bill English). Bin 44 is glorious on the waterfront, LBQ is a hidden gem down a side street, Black Dog make their own beer on-site, Basque showcases Spanish craft beer and it is hard to say “nein” to the German beer and hearty dishes at München. There are now four D4 pubs in town and up the coast. They have a strong beer list and service inspired by the best of Irish hospitality.

The stores The benchmark for retail outlets has long been Regional Wines and Spirits, which is ironically best known for its beer. It was pouring riggers of fresh beer years before it was fashionable. Very honourable mentions must go to Thorndon New World and Moore Wilsons, though the standard and range of supermarket offerings is quickly rising across the board. I boldly predict that a Wellington supermarket will be pouring tap beer within a year. There will be objections from the usual suspects of course. I may be biased – who am I kidding, I am – but Wellington truly is the Craft Beer Capital of New Zealand. And it is just getting warmed up...

Thorndon New World’s beer selection

FMCG BUSINESS: THE SHOUT NZ - JULY 2017

[ Q&A ]

HOPPINESS COMES FIRST Just when you thought you knew a thing or two about hops, meet sensory analyst and hop expert Amy Paisley. How do hops get diﬀerent aromas? Hops contain many different compounds including thiols, terpenoids, esters and many more, which all contribute to the flavours and aromas. These compounds come from the oil which is found in the lupulin glands of the hop flower (the sticky yellow pollenlike substance at the base of each petal). Different hop varieties’ unique flavour and aroma characteristics depend on the amount of each of these compounds which are present.

AMY PAISLEY is not your typical beer aficionado. In her recent role as a scientist in the Sensory and Consumer Science team at Plant & Food Research (PFR), Paisley spent most of her day in a lab looking for a particular aroma in newly-bred hop varieties by smelling hundreds of dried hop cones, or tasting beers to generate descriptors, or escaping the lab and travelling to Motueka - where PFR had a 50L brewing facility – to participate in hop harvesting and brewing in the PFR Hop Lab. Until recently, Paisley has also been developing beer recipes suitable for the Asian palate for handcrafted food and beverage company Imake. So it’s fair to say, this hop expert knows a thing or two about a good brew and we asked her to impart a bit of her wisdom with us…

their amazing complex flavours and aromas, and also their potential to create unique flavours in local and international beers was really exciting.

Where has your expertise taken you in the beer industry? I have presented to large groups of beer enthusiasts in social events, such as tastings run by Craft Beer Online in Auckland. I have also trained bar staff on beer and hops, and in 2016 and 2017 I was invited by wellknown beer writer Michael Donaldson to be on the New World Beer & Cider Awards judging panel. This meant I participated in the judging of more than 500 different beers over two days and I loved it!

How can you tell a good hop from a bad hop? If a hop is old, it can smell cheesy or almost like old socks - musty or mouldy - so that’s definitely a bad hop. Otherwise, if a hop only has one aspect to its aroma – such as if it’s just earthy smelling or just onion/ garlic smelling - then it’s is probably going to impart those characteristics into a beer, which is not ideal.

What can Kiwis learn more of in terms of what makes a great beer? I think in New Zealand we haven’t been exposed to the vast variety of beer styles which are out there and have existed for hundreds of years in other countries. This, I think, can make the general beer drinking public a bit xenophobic to styles which may challenge their palates or are outside of their comfort zones.

How did you develop a passion for beer and hops? When we began the research on the sensory evaluation of hops there wasn’t a lot of previous research done on assessing dried hop cones, so this required exploring and experimenting with methods we could use to assess the hops. During this work was when I discovered the huge variety of hops and 10

FMCG BUSINESS: THE SHOUT NZ - JULY 2017

Hop FYI • Hops were introduced into New Zealand more than 150 years ago and grown successfully in the Nelson area ever since. • Hops can only be grown at certain latitudes across the globe as they are sensitive to day length, they need frosts and are vulnerable to wind damage. • The NZ PFR breeding programme, led by Dr Ron Beatson, has released dozens of hops with unique flavour and aroma profiles - including Dr Rudi in 1976, Riwaka in 1997 and the Rockstar hop Nelson Sauvin in 2000. • Hops are related to marijuana which is why people have put dried hops under their pillow to help induce a peaceful sleep. This is also the case when you drink beer as well, as the effect of alcohol they also have a sleepy effect on you.

[ people ]

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

Richard Painter

Winemaker for Mud House Keen on travel and with a thirst for adventure, Mud House Winemaker Cleighten Cornelius returned to New Zealand after his OE with his sights set on becoming a winemaker; a profession which would allow those passions to continue to be a big part of his life. With a Lincoln University Bachelor of Viticulture and Oenology under his belt and several years of grassroots cellar work, he set off to the Northern Hemisphere to work vintages in France (Chambolle-Musigny), Germany (Rheingau), and Cyprus. Returning to New Zealand with Old World winemaking experience under his belt, he worked in the Waipara Valley and Marlborough before joining the Mud House team in 2012. Cleighten recently released the new Mud House Sub Region Series, which hones in on patches of Marlborough which show unique expressions of key varietals. On winemaking he says: “To continually evolve and never stop learning is the key.”

Winemaker for Te Awa Collection Winemaker for Te Awa Collection, Richard Painter, is familiar with a range of New Zealand winemaking regions, having worked on vineyards in Central Otago, Canterbury and Nelson. After a period overseas in Oregon, U.S., he has now found home in Gimblett Gravels, Hawke’s Bay, where he produces his Kidnapper Cliffs and Single Estate wines. Kidnapper Cliffs pays homage to one of Hawkes Bay’s most iconic, proud landscapes, taking you on a journey to the higher echelons of winemaking. Classic Hawke’s Bay varieties of Chardonnay, Syrah and Bordeaux blends are created from the best vineyards on the single estate, made specifically for cellaring. The latest vintages of Kidnapper Cliffs have just been released, featuring two reds from 2013 and a 2014 Chardonnay - arguably some of the best vintages in the Hawkes Bay. To offer wines that are little more eccentric and quirky, Richard also produces the Left Field range which includes wines from around the country.

James Macdonald

Stewart Maclennan

Chief Winemaker for Hunter’s Wines James Macdonald is the eldest nephew of Jane Hunter, CNZM, OBE. He is a fourth generation winemaker/viticulturist and grew up immersed in the business of Hunter’s vineyards and winemaking operations. James studied Oenology & Viticulture at Lincoln University near Christchurch. He built on his experiences at the family winery and by working vintages in Australia, Italy, USA and Bordeaux, France. James returned full-time to the family winery in December 2011 and immediately invigorated the winery with his quest to experiment with new techniques and ideas. Now Chief Winemaker, James still maintains focus on ensuring that Hunter’s wine styles are evolving yet remaining classic examples of the best that Marlborough has to offer – elegant, fruit driven and well balanced. In his spare time, James is a passionate chef, going to extreme levels to source ingredients and to produce tempting dishes at family gatherings. Not to mention, he is pretty handy around the golf course too.

Winemaker for Saint Clair Family Estate Stewart has been involved in many facets of making wine in Marlborough and abroad since 2003 and has been a part of the Saint Clair team throughout. In recent years, Stewart has undertaken extensive work and travel through Australia, Italy, France and Austria, while studying with EIT, NMIT and WSET and working closely with other Saint Clair Winemakers Hamish Clark and Matt Thompson. He has broadened his knowledge and understanding of local vines and soils and his intimate knowledge of the winemaking process at Saint Clair Family Estate. Stewart also co-manages the winemaking and production teams and drives quality for all of Saint Clair’s white wines. Coming from a musical background and education, it was an easy transition into the world of winemaking being surrounded by people with passion and drive to creatively pursue the ongoing improvement of the thing they love.

FMCG BUSINESS: THE SHOUT NZ - JULY 2017

A LOOK AT THE ALTERNATIVE… Celia Hay, wine expert and owner of The New Zealand School of Food & Wine, shares her thoughts on alternative and innovative wine varieties in New Zealand. NEW ZEALAND’S long, thin islands lie approximately between the latitudes of 36° to 46° south of the equator. New Zealand is considered to have a maritime climate due to the close proximity of the sea and its moderating influence. This means that the seasons are less extreme and generally there is always wind and cloud with regular drops of rain. Central Otago, which is furthest from the sea is considered to have a continental climate. New Zealand remains a predominantly white wine producing country that reflects this cool, maritime climate, so when looking toward innovation in ‘new’ wine styles, white grapes tend to favoured over red.

White wines

Gewürztraminer Pronounced: Ge-vur-stramean-er Gewürztraminer has a long history in New Zealand and really should be more popular among than consumers than it currently is. Grown in the warmer climates Matawhero Single Vineyard Gisborne Gewurztraminer 2016

Te Mata’s Woodthorpe Viognier vines

of Gisborne and Marlborough, its distinctive aromatic nose of rose petals, jasmine, lychee and musk, with soft acids and a rich mouth-feel make it very well suited to fusion and Asian cuisines. Try these wines: Matawhero, Vinoptima, Lawson’s Dry Hills

Viognier Pronounced: Vee-on-e-ay Viognier is one of my favourite wines. Originally from the Northern Rhone, it became fashionable in New Zealand around 15 years ago. Most Viognier in New Zealand is made with grapes grown in Gisborne, Hawke’s Bay and Marlborough. It shows aromas of peaches, apricots, ripe pears, apples with a

FMCG BUSINESS: THE SHOUT NZ - JULY 2017

hint of floral notes such as honeysuckle and lightly perfumed blossom. Viognier is dry on the palate and medium to full-bodied with medium acidity and often with some oak influence. Sadly, plantings are in decline ant the current 119 hectares is expected to drop to 99 hectares by 2019. Try these wines: Hans Herzog, Te Mata Estate, Elephant Hill

Grüner Veltliner Pronounced: Grew-ner Valt-leaner Grüner Veltliner is the Austrian grape that a decade ago was seen as the new, trendy cool climate wine. Currently there are 46 hectares planted around Te Mata Zara Hawke’s Bay Viognier 2015

[ wine feature ] New Zealand but this is not anticipated to grow beyond this level. It is dry with lemon citrus and neutral minerality that makes it a very flexible wine to pair with a multitude of cuisines. Try these wines: The Doctors’, Yealands, Coopers Creek

Arneis Pronounced: Ar-nay-eess Arneis is the white grape from Piedmont in Northern Italy. It is made in an unoaked style with classic flavours of citrus and pears. There are currently 33 hectares planted around New Zealand and it is expected to grow by a third in the next few years, so expect to see more of this wine. Try these wines: Hans Herzog, Villa Maria

Red wines

Auckland, Gisborne, Hawke’s and more northern wine regions have a warmer climate and therefore more suited to varieties such as Syrah, Cabernet Sauvignon, Cabernet Franc, Merlot and Malbec, which require warmer temperatures to ripen. Further south we see the dominance of Pinot Noir. Experimentation of red grape varieties is more limited for red wines as these are so often blended with other grapes as in the Bordeaux tradition of Cabernet Sauvignon and Merlot. As a consequence, in New Zealand you are less likely to find a straight Malbec or Petit Verdot because it has been added to a blend.

Montepulciano vines at Hans Herzog

passion for a certain grape variety and often make these wines for their personal pleasure from small planting that they have squeezed in alongside their main production. These small production wines often are fun to find and try as they offer new insights beyond the mainstream wines that dominate the New Zealand market. Pinotage Trinity Hill in Hawke’s makes Yealands Estate Single Vineyard Pronounced: Pea-no-taj Tempranillo and a Touriga Marlborough Historically, Pinotage Nacional, the famous wine that Grüner Veltliner had a strong-hold in dominates Port. New Zealand but it has Heron’s Flight in Matakana steadily declined in plantings specialises in the Italian grapes Chenin Blanc over the last decades and lost of Sangiovese and Dolcetto. It Pronounced: Shen-in blonk out to Merlot and Syrah. Today offers three different styles of Chenin Blanc remains static at around Pinotage is down to 25 hectares Sangiovese that are definitely 24 hectares and but has a loyal and is expected to continue worth looking out for. These following. This grape originates in declining. Most plantings of wines show ripe plum characters the Loire Valley of France and is this South African variety but with ripe tannins and commonly made as a dry, off-dry were in the Gisborne area. balanced acidity. or sparkling wine. Chenin’s apple, Pinotage, from South From Hans Herzog in lemon, honey character makes it a Africa, can be smooth and Marlborough, you can find a New Trinity Hill Gimblett Gravels versatile wine that works well with berryish and considered Zealand expression of many Hawke’s Bay many foods. Millton Vineyard’s Te an answer to Beaujolais, or European grapes. Hans ferments Touriga NV Arai Chenin Blanc is probably the be more seriously oaked. wines is small batches and with a most consistently famous New period of ageing in oak barriques. Zealand Chenin Blanc. Pyramid For the wine lover, you are able to discover Valley’s Chenin made from the The other innovative red grapes Hans’ interpretation of Tempranillo from Kerner Vineyard in Marlborough are in very small quantities – Rioja in Spain, from Italy, Nebbiolo, Barbera fruit has also become an sometimes only one hectare and his iconic Montepulciano and from iconic wine exists - for instance in the case of Austria, Zweigelt and St Laurent. These Try these wines: Millton Vineyard, Nebbiolo, St Laurent or Grenache. wines are medium to full-bodied with ripe Pyramid Valley With the red wines, you do find berry fruits and savoury notes and are Millton Te Arai some skilled and motivated designed to be enjoyed with food over Vineyard Gisborne Chenin Blanc Albarino winemakers have developed a a meal. Pronounced: Al-bar-ee-nyo Albarino is also growing in plantings. Currently at 30 hectares, Albarino is expected to grow to 37 hectares by 2019. CELIA HAY is the founding chairman-president of As traditional grape from Galicia, on the the New Zealand Sommeliers and Wine Professionals western coast of Spain and northern Association and holds the WSET (London) Diploma of Portugal, Albarino is rapidly growing in New Wine. In 2016 she gained the French Scholar credential Zealand. It is fermented dry with lemon grass and is certified by the society of wine educators. and honey flavours. Try these wines: Neudorf Vineyards, Coopers Creek

Other red varieties

FMCG BUSINESS: THE SHOUT NZ - JULY 2017

[ tasting notes ]

Subtle and mysterious

Pinot Noir

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

What makes Pinot Noir so popular? Subtlety, mystery and charm, stubborn tannins and finelytuned acidity and a core of pure fruit? Or is it that when done well it is so tasty and satisfying? Although it is widely accepted that Pinot Noir’s first home is Burgundy, France, its DNA has been cloned and planted in all corners of the globe. Fine Pinot Noir can be discovered in Germany, Italy, the Americas, Australia and, of course, New Zealand. There are many influences on the smell, taste and textures Pinot Noir – type of farming (minimal intervention, dry farming, organic, bio-dynamic or modern interventionist), soil type is a significant player, access to moisture and cropping levels. In the winery there are important considerations, for example the ratio of whole bunch versus de-stemmed, cold soak, natural or inoculated ferments (or both), racking from tank to barrel or barrel to barrel, the type, size and age of oak used. From the above and incomplete list of options - an expression of Pinot Noir is formed.

FMCG BUSINESS: THE SHOUT NZ - JULY 2017

There are many flavours and textures of fine Pinot Noir, including ripe red fruits – these may include red cherry, raspberry, cranberry, wild strawberry or black cherry. Floral tones can be purple and red flowers, violets and lilacs. Some herbal or spice qualities can have a quiet-yetobvious voice, such as the wild thyme layer found in many expressions from Central Otago and then there’s tea leaf, dried herbs, fennel, anise and clove. Other aromas and flavours include game, earth, minerality and limestone. Pinot Noir is nearly always a dry wine, with medium weight (body), fine to elevated tannins (that dusty chalky texture) and elevated acidity in the finer examples. Pinot Noir remains a benchmark variety for anyone learning about wine to know and understand, it remains a benchmark variety for students of viticulture and winemaking as well as wine theory and tasting assessment - to know and understand. Pinot Noir has allured and beguiled for many decades.

[ tasting notes ]

MONDILLO CENTRAL OTAGO PINOT NOIR 2014 A complex and evocative bouquet of primary red fruit aromas laced with oak spice, stony mineral and dense floral tones. On the palate - fruity, dry, firm and youthful still, primary red fruit flavours, loads of acidity and tension from youthful chalky tannins, lengthy finish with complexity and potential. Drink from 2018 through 2026. Points 95 RRP: $45.00 Distributor: Mondillo Phone: (027) 428 2214 www.mondillo.com Q WAITAKI VALLEY PINOT NOIR 2016 Vibrant, crisp, fresh, very fruity and very engaging bouquet loaded with pinosity; dark cherry, rocky minerals and plenty of oak - but not overdone. On the palate - juicy, fleshy, fruity and very flavourful with suggestions of dark red cherry and mangosteen, a hint of red beet, loads of spices with oak punching through, moderate tannins and plenty of acidity. A young wine. Best from 2018 through 2028. Points 95 RRP: $55.00 Distributor: Q Wine Phone: (021) 349 400 www.qwine.co.nz

HAWKDUN RISE CENTRAL OTAGO PINOT NOIR 2014 An impressive concentration and core of ripe red berry fruits, complexity layer from new oak and oak spice, plenty of energy and vibrato. On the palate - youthful, vibrant, fresh with a core of fruit - dark raspberry and cherry, clove and vanilla toasty oak layer, nicely complex, youthful tannins (ripe) and decent backbone of acidity. Drink now if decanted, though best from 2018 through 2026. Points 94 RRP: $40.00 Distributor: Hawkdun Rise Phone: (03) 448 7782 www.vineyardstay.co.nz BIG SKY PROVENANCE MARTINBOROUGH PINOT NOIR 2014 Lovely bouquet and quite alluring with aromas of vanilla and cinnamon laced tea, ripe and fragrant strawberry fruits, red apple skin and earthy silty mineral tones. On the palate - lovely tension and poise that holds my attention, flavours of red berry fruits and red apple skin, dusty and chalky tannins, harmonious and showing complexity as well as potential with a decent and lengthy finish. Drink from 2018 through 2028. Points 94 RRP: $45.00 Distributors: Caro’s Wines and i-spy wine agencies Phone: (027) 424 8974 www.bigskywines.co.nz

TAYLORS ADELAIDE HILLS PINOT NOIR 2016 Attractive bouquet of light red berry fruit suggesting cherry then raspberry - both laced with cinnamon spice and mild toasty oak, simple and forward yet inviting and warm. On the palate - fruity, dry, some spice and toastiness from the tannins and wood influences; a chalky texture enhanced by the acidity. Overall balanced and well made. Drink now and through 2022. Points: 88 RRP: $15.00-$18.00 Distributor: Taylor Brown Limited Phone: (09) 447 3801 www.taylorswines.com.au DEVIL’S CORNER TASMANIA PINOT NOIR 2016 Bright and light red berry fruit aromas with a strawberry and cherry suggestion, mild toasty oak with light brown spices moment, fresh, lively, varietal. On the palate - light weight, fruity example with some red berry fruit flavours laced with a touch of brown spice, very easy tannins, crisp, dry finish. Drink now and through 2020. Points: 85 RRP: $17.00-$20.00 Distributor: Taylor Brown Limited Phone: (09) 447 3801 www.brownbrothers.com.au Wines are scored out of 100 points and are listed in no particular order. Numbers are not indicative of a ranking.

FMCG BUSINESS: THE SHOUT NZ - JULY 2017