FMCG - July 2018

fmcgbusiness.co.nz

L E A D I N G

I N D U S T R Y

N E W S

July 2018 – Volume 5 – No 6

NEWK LOO NG I COM N SOO

PLUS! FINE FOOD NZ n BISCUITS & CRACKERS n NEW PRODUCTS n NEW ZEALAND’S LARGEST FMCG AUDIENCE

99% sugar free 100% fun!

Delicious range of fruity flavours.

No artificial colours or sweeteners.

Always read the label use only as directed. Supplements should not replace a balanced diet. Sweetened with naturally derived ingredients.

Blackmores, Auckland, New Zealand. TAPSPP1946

contents

July 2018

Up Front

Events

4

Editor’s note

32

Fine Food New Zealand Highlights

6

Industry news

33

Events Calendar

7

Cover story New look for Lupi Olive Oil

35

Social Sphere Industry members spotted out and about

Category Insights

The Shout

18

Biscuits, Crackers & Cakes

3

Editor’s note

22

Vitamins & Supplements

4

Industry news and insights

24

Baby & Toddler Care

7 Take your pick…

This month’s must-try classics and new releases

Regulars 8

What’s Hot New products in store

12

8 The organic way

Q&A with Millton Vineyards founder, James Millton, plus organic wine stats from the 2018 OANZ Market Report

10 Gear

New technology for work, rest and play

10 Organically speaking

There’s no better time to opt for one of these organic wines

12 Q&A

Meet T&G Global’s new CEO 15

Buy NZ Made Empathy beats algorithms

16

Best in season Fresh produce

11 Event pics

A few social snaps from The World of Wine Festival

Good Business 26

Industry news

32

27 FGC

Be Treatwise 28 Feature

SWITCH ON - the benefits of contactless payments

12

Sweet, sweet wine Tasting notes from Cameron Douglas MS

14

Stars and hops: American beer Neil Miller shares insights into APA in NZ

16 Beer consumers in emerging markets offer a flavourful, flourishing future Category insights from Nielsen US

29 Legal Advice Are you meeting your obligations as landlord or tenant?

30 Sustainability

“We all need to play our part,” says Countdown’s GM Corporate Affairs, Kiri Hannifin.

31 Export

The crafty way to cider success

27 FMCG BUSINESS - JULY 2018

3

[ editorial ]

The cost of everything

I

t’s a challenging time for retailers and shoppers alike.

“Why are some products suddenly so expensive?”

“Why is NZ butter cheaper overseas?”

“The industry needs a shake up!”

These are some of the conversations we see on social media at the moment, but I am sure that most companies think very carefully before passing on increased costs and to some extent they are at the mercy of influences outside their control. Fuel prices – and therefore freight and transport costs - are rising. Increases in the minimum wage and property prices are also pushing up the cost of many goods. A weak NZ dollar has affected the price of some imported products. Add the impact of inclement weather and floods on recent harvests in some areas and we are suddenly facing a perfect storm.

However, there is clear pressure for retailers to deliver great value, says T&G Global’s newly appointed CEO Gareth Edgecombe, in our interview on pg 12-14, where we also find out more about New Zealand grown produce and that weather challenge.

To help you and your team navigate the constantly changing FMCG landscape, we bring you advice from a wide range of industry experts every month, including FGC Chief Executive Katherine Rich and the Executive Director of ExportNZ, Catherine Beard.

New Zealand is currently negotiating a free trade agreement with the European Union, one of the world’s largest trading entities. The EU is New Zealand’s third largest trading partner after China and Australia and total trade in goods with the EU amounted to nearly €8.7 bn last year. (I was born in Europe and came to New Zealand 30 years ago – so I’m watching this development with interest.)

We also welcome a new columnist this month. Ryan Jennings is the Executive Director of the Buy New Zealand Made Campaign, working with manufacturers, producers, growers, and exporters to gain market origin advantage for their products through the application of the globally recognised ‘New Zealand Made’ Kiwi trademark. You will find Ryan’s tips and insights on pg 15.

Enjoy this issue,

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

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

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L E A D I N G

I N D U S T R Y

N E W S

July 2018 – Volume 5 – No 6

NEWK LOO G IN COM N SOO

ON THE COVER The Lupi Olive Oil range has undergone an exciting packaging transformation.

See all the details on pg 7.

PLUS! FINE FOOD NZ n BISCUITS & CRACKERS n NEW PRODUCTS n NEW ZEALAND’S LARGEST FMCG AUDIENCE

FMCG BUSINESS IS PROUDLY ASSOCIATED WITH

4

FMCG BUSINESS - JULY 2018

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.

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[ news ]

Walter & Wild buys Hubbard Foods, Hansells, Gregg’s Table Sauces Walter & Wild, a newly formed New Zealand company announced three separate deals at the end of June, combining a suite of iconic New Zealand brands under the one umbrella.

“The bringing together of Hubbards, Hansells and Gregg’s Sauces under Walter & Wild combines some of New Zealand’s best-known food brands into a food manufacturing powerhouse,” said Harry Hart, owner of Walter & Wild.

“The breadth of expertise, manufacturing capability combined with an understanding of markets, both here and offshore will drive further growth and innovation. We now have a significant brand portfolio reaching consumers from breakfast to dessert,” said Hart.

Leading brands in the portfolio include Alfa One, Aunt Betty’s, Hansells, Vitafresh, Vitasport and Coconut Collaborative; Hubbards’ mueslis and cereals; and Greggs table sauces.

The acquisition of Hansells Food Group now brings the range of Hansells’ brands back to full New Zealand ownership.

The company has also purchased the licenses for the supply of Gregg’s tomato, barbeque and steak sauces, and ketchup, as well

as the F. Whitlock & Sons Worcestershire sauce in New Zealand, as part of a required divestment undertaking from Heinz Wattie’s.

Hubbards founder Dick Hubbard said: “After making the equivalent of 3 billion bowls of mueslis and cereals over 30 years, it is time to hand over the reins to a younger generation. In selecting a buyer, it was important that Hubbards remained in New Zealand ownership. I’m very pleased to have achieved that goal”.

Hart and his team will build on the brands’ heritage and successes and significantly invest in their future.

“These organisations have a bright future together. The immediate focus will be on bringing the business together, and moving forward, we will be making the most of the strong potential we see for these brands both in New Zealand and offshore,” said Hart.

Walter & Wild Limited (formerly HFG Group Limited) is a private company, owned by New Zealand investor Harry Hart. It will be a significant force in New Zealand’s FMCG sector, with a combined portfolio of more than 500 products.

Synlait Milk appoints new CEO Leon Clement will join Synlait Milk as Chief Executive Officer from mid-August. The appointment is the outcome of a global recruitment search, after co-founder and inaugural CEO John Penno announced his intention to stand down in November 2017.

Most recently, Clement was Managing Director of Fonterra Brands New Zealand and prior to that was Fonterra’s Managing Director of Sri Lanka and the Indian Subcontinent.

Having held numerous senior leadership positions throughout his career, Clement is excited by the opportunities Synlait has created and is looking forward to taking on his new role.

“I’m passionate about New Zealand agriculture, and growing people and businesses in a sustainable way,” says Clement.

“That’s why I’m so excited to be joining the Synlait team at such a pivotal time. The progress to date is impressive and under John’s leadership Synlait has achieved some significant milestones, which have set the business up well for the next phase of growth.”

Did you know?

Synlait’s Head Office is based in the heart of Canterbury with facilities in the Auckland region and Palmerston North. The company combines expert farming with state-of-the-art processing to produce a range of nutritional milk products. Synlait commenced production in 2008 and has quickly become a global competitor in the international milk powder market.

Leon Clement.

FOR MORE INDUSTRY NEWS FOLLOW US ON 6

FMCG BUSINESS - JULY 2018

CHECK OUT WWW.FMCGBUSINESS.CO.NZ

[ cover story ]

NEW LOOK FOR LUPI OLIVE OIL New Zealand’s #1 Olive Oil, Lupi has undergone an exciting packaging transformation, with a completely new bottle and labelling package being rolled out this month.

“We were excited to have the opportunity to review the Lupi packaging and imagery, taking out what had probably had its day and refining the rest to create a great new look”, explained Sam Aitken, Managing Director of William Aitken & Co. Aitken explains: “We wanted to have a range of Lupi Olive Oil, where the look and feel was uniform across the range, yet have distinctive cues so each product still has its own unique look.

The Lupi logo has had some subtle changes and has been made more prominent on the packaging. All Lupi 500ml, 750ml and 1L pack sizes, in Extra Virgin, Pure & Extra Light Olive Oils are changing to the new packaging with Pure now called Mild and Extra Light now Extra Mild, better representing the difference between fuller flavoured Extra Virgin and the Milder flavoured oils. All Lupi Extra Virgins will now include a sealed neck sleeve on the bottle covering the cap and neck of the bottle, to reinforce the quality aspect of Lupi Extra Virgin Olive Oil.

“Illustrated within the background of the new look, is a continuation of our ongoing “From Deeper Roots” campaign. Lupi has used olive trees from all over the Mediterranean since 1880, whose deep and strong roots from this ancient region can attest to Lupi’s rich heritage and flavour.”

Lupi Olive Oil has a long, proud history in New Zealand. It was first imported from Italy in the 1950’s by Sam’s great-grandfather Bill Aitken, and was the first Olive Oil readily available in New Zealand supermarkets.

Aitken says: “Olive Oil accounts for 47.7% of all Liquid Cooking Oil value sales and has delivered $3.7M of additional sales vs last year, 72.5% of all category growth. Lupi has been New Zealand’s number 1 branded Olive Oil for many years with a value share of 27.2% in the last MAT. Extra Virgin Olive Oil has the largest share of Olive Oil sales with 53.4% of all sales and has delivered $1.6M of growth. Two other segments make up the other 46.6%: Mild (Pure) (31.7%) and Extra Mild (Light) (14.8%) with both Mild +$1.5M and Extra Mild +$500k also contributing strong growth.”

Data Source: Total NZ Grocery, Nielsen Scan – Value Share & Value Growth Total Cooking Oils and Total Olive Oil – MAT 10/06/2018

new

Introducing want to try something irresistible?

The irresistible NEW caramel chew filled with white chocolate from the Mentos CHOCO range NPD drives category growth with 35% of shoppers looking for “new” at least monthly*

yum, i’m filled with white chocolate

Choco launch provided 16% incremental growth to Mentos** Mentos Choco is a significant basket builder - the average shopper purchases 2+ Mentos Choco Rolls per occasion*** Source: * Shopperpedia Confectionery Deep Dive 2015 ** IRi MarketEdge MAT Data to 21/05/17 *** Nielsen Homescan – MAT 21/01/18

Contact your DKSH New Zealand Limited representative for more information.

Extracted from Deeper Roots Look out for Lupi’s NEW packaging, appearing on supermarket shelves this month.

The packaging was inspired from Lupi’s 2018 TVC, “From Deeper Roots”. Drawing on Lupi’s long history as New Zealand’s favourite olive oil.

For more information visit lupi.co.nz or call William Aitken & Co on 09 370 0000

It’s Game Time at Bluebird As proud supporters of the All Blacks, we’re instigating excitement and further growth in the snacking category by leveraging Kiwis’ broadening tastes and our love for rugby. Introducing the 2018 Bluebird Lineup - four new flavours inspired by the four competing nations in the Investec Cup. Available for a limited time.

Bluebird.co.nz/gametime

New Red Rock Deli Nuts Feed your curiosity with a delicious range of premium roasted and coated peanuts created by selecting only the finest quality ingredients to deliver a unique taste sensation. Available in Sweet Honey & Sea Salt, Red Pepper & Roast Garlic, and Sweet Chilli & Basil.

NEW Giannis Gluten Free Pita Bread After much consumer demand, particularly in recent years, we have developed a Gluten Free Pita Bread to our range. It is a wonderful product that has a very nice texture and taste and performs as a Pita should. With the Gluten Free segment now a significant piece of the bread category we are so pleased to be able to offer a Gluten Free Pita option to the market.

For ranging enquiries contact: Simon Rangihaeata, Sales Manager Ph +64 21 854 091 simon@giannis.co.nz 8

FMCG BUSINESS - JULY 2018

Blackmores Superkids 99% Sugar Free Blackmores Superkids® Gummies and Chewable Vitamins are 99% sugar free and still taste delicious to help balance out kids' diets. Kids naturally enjoy a sweet taste but we all know that sugar isn’t good for a growing kid’s teeth or body.

Our Gummies and Chewables are naturally sweetened from natural carbohydrate sources, xylitol and sorbitol. blackmoresnz.co.nz advice@blackmores.com.au 0508 75 74 73

[ news ]

New MD for Countdown

challenges for advertisers is the visibility of where an ad is placed. We’ve seen examples of alcoholic beverage ads being placed next newsappointed articles Natalie Davis hastobeen related under-aged drinking as thetonew Managing Directorand of flight commercials next to stories about Woolworthsplaced New Zealand (including airplane crashes.

This is why visibility Countdown Supermarkets), replacing is important - to minimise the risk to Dave Chambers. publisher advertiser brands. on 2 July, Davis and starts with Countdown coming from her current role as Chief

Customer Transformation Officer forto the How are insights delivered Woolworths Group. clients?

CEO of Woolworths WhatBrad you Banducci, get with Pathmatics is access to ourGroup, wholesays digital library sincethe thecampaign appointment signals thestrategic service went live in of New Zealand in importance New Zealand Natalie Davis is the new Managing May This “Iallows searchwill for to 2017. the Group. knowyou thatto Natalie Director of Woolworths New Zealand. specific creative by advertiser. build on the strong foundations already also Zealand gives youbusiness the ability to view established at Countdown. The transformation of This our New is underway, your execution and Natalie is well placed to further build on this withown the digital currentcampaign leadership team,” as well as competitor campaign strategy. says Banducci.

This delivered simpleinto “Natalie’s passion for customers and our team, andisthe key rolethrough she hasa played use web-based interface.

Within the transformation of our Australian Food business over the last few years, makethe her clients can easilyhave pullwithin together an obvious choice. It also highlights the breadthinterface, of talent we increasingly presentation form reports like top the Group.” advertisers, top sites top categories.

Davis says she is delighted with her appointment and can’t wait to and get started.

“I have Users also follow specific been lucky to have worked with the New Zealand teamcan over the past few yearsbrands, and it has setupThe alerts for thepassion latest creatives been a real pleasure getting to know the team here. genuine towards and putting track impressions those brands Kiwi customers first, pride in their work and focus on the culture is core toofour future success,” Nick Whitehead, Senior Manager, over time. says Davis.

Client Development at Nielsen

What does the future of ad intelligence look like?

New World Feilding open for business advertisers, the tool is being used predominantly for two reasons; to provide greater transparency into programmatic buys, showing which sites their digital campaigns were placed on; as well as helping them to better brief their agencies in future digital campaigns.

New World Feilding opened its

Continual change. If we just look at the last ten years, Digital ad placement has changed dramatically and we expect this to continue. Consumers increasingly have access to content across multiple devices, apps and platforms. Nielsen’s ad intelligence service will continue evolving to allow a comprehensive measure of campaigns, across platforms and devices.

doors in June, on the corner of Aorangi Gladstone Streets.

Why isand visibility of ad It’s been a labourimportant? of love for placement Todd Nicola Carter who being have an With and programmatic buying automated process, of the been running a Newone World justbiggest around the corner, at the same time as setting up a brand new supermarket, which features an improved fresh produce department, light filled aisles and a new café. An all new deli kitchen offers hot food creations, plus an innovative, fresh bakery with its highly qualified team make all the traditional favourites and more.

“We think that the café will soon become a real hub for the community and make a shopping experience here even more enjoyable. Our team has been through some pretty rigorous barista training and is keen to get cracking decorating flat-whites with a bit of latte art!” says Nicola Carter.

The new supermarket services a rural community which has cried out for better parking, and their prayers have been answered. The store has better access for drivers – with plenty of dedicated spaces for parents with little ones and drivers or their caregivers with mobility issues.

New World Feilding is absolutely on board with programmes to reduce plastic and waste For more information contact: Nick Whitehead –Senior there’s a focus on reusable with a ban on single use plastic bags at the checkout Manager, Nielsen Newbags Zealand nick.whitehead@nielsen.com coming into effect by the end of 2018, if not sooner.

We don’t just find great individuals...

We build great FMCG teams.

Convergence Partners has been instrumental in developing the talent framework behind many iconic FMCG brands and organisations.

Whether you’re looking to fill senior, niche, technical or business critical roles, we can help.

Talk to our specialist FMCG recruitment team: Lara Devereux Sales & Marketing lara@convergencepartners.co.nz 09 300 6877

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

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

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

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

www.convergencepartners.co.nz

[ gear ]

Nokia 7 Plus

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

People of a certain age go misty-eyed at the mention of Nokia. They were indestructible and ran for an entire week off a single charge. Now Nokia is back and their latest phone - the Nokia 7 plus - is a cracker. Powered

by Android One, it’ll receive up to two years’ worth of upgrades. This ensures you’re always using the latest version of Android. Another benefit is that its interface is bloatware-free stock Android. It also sports dual cameras and a large 6” HD display. $659 https://www.dicksmith.co.nz/dn/ buy/nokia-7-plus-64gb-blackcopper-nokia/

Ultimate Ears Blast Speaking of Amazon’s echo, the Ultimate Ears Blast also has Alexa built in. It’s a pint-sized Bluetooth speaker that can crank out an improbable amount of audio. It’ll also act as a speakerphone. Its Alexa capabilities mean it can tell bad jokes, give weather forecasts and carry out countless other tasks. It’s also built like a brick you-know-what house. $349 https://www.jbhifi. co.nz/headphones/ ultimate-ears/?q=ultimate%20ears%20blast&

10

FMCG BUSINESS - JULY 2018

JBL Contour Reflect JBL has a huge reputation for industrial-strength commercial speakers. Now it looks like they’re about to carve out a niche for themselves in the wireless earbud market. This is thanks to the Contour Reflect Bluetooth earbuds aimed at sporty types and fitness fanatics. Not only are they sweat proof, but they’ll also play nice with Siri and Google Assistant. They can also handle phone calls. A reflective cable also makes them ideal for joggers on dark winter nights. $98 https://www.harveynorman.co.nz/hotdeals/jbl-reflect-contour-wireless-in-ear-headphones.html

[ gear ]

Swann Smart Security Cameras

JBL Charge 3

Keeping an eye on your property is now easier with Swann’s HD Smart Security Cameras. They’re weatherproof and wireless, which makes for simple installation. Unlike other security cameras, Swann’s smart cameras won’t bombard you with false positives. This is because they look for infra-red heat signatures instead of being triggered by movement. The footage gets saved on a micro SD card and stored online by Swann for free, for 7 days. $869 (3 camera pack) https://www.pbtech.co.nz/product/CCTSWN1001/ Swann-Wire-Free-Smart-Security-Camera---1-Pack-108

Adding sounds to a BBQ used to involve hanging your mum’s 3-in-1 speakers out a window. The folks at JBL reckon it’s so much easier using the Charge 3 Bluetooth speaker. After pairing the Charge 3 with your phone’s Bluetooth, tunes can get zapped over to it with ease. Its small round and weatherproof design feel almost indestructible. Best of all, it belts out the beats. $269 https://www.jbhifi.co.nz/portable-audio-fitness/ wireless-speakers/jbl/jbl-charge-3-portable-bluetoothspeaker-camo/337380/

Logitech Harmony elite Plus If you have a teetering pile of remotes and a spouse struggling to figure which remote does what, don’t stress! Logitech’s Harmony universal remote has your clicker conundrums sorted. It’ll control most TV, DVD, set-top box and sound systems known to humanity.

Nicer still, you can set activities. Setting up an activity called “watch TV “creates a button on its touchscreen. This switches on my TV, the MySKy and sound system all in one go. It also works with Alexa, so you can say “watch TV”. Magic! $399 https://www.pbtech.co.nz/product/JOYLOG3022810/Logitech-Harmony-Elite-Plus

FMCG BUSINESS - JULY 2018

11

[ Q&A ]

MEET T&G GLOBAL’S NEW CEO FMCG Business caught up with T&G Global CEO Gareth Edgecombe, who starts his new role on 9 July 2018. Edgecombe is based at the company’s head office in Mt Wellington, Auckland.

Congratulations on your new appointment! What will your focus at T&G be, for the first months?

I’m excited to be joining T&G in its 121st year of business. It’s an iconic New Zealand company and an enviable success story.

It’s also a large, complex business with 12 markets and substantial growing, packing, storage and transport operations across New Zealand supported by close to 1500 people – with a further 200 offshore. T&G is well positioned for continued growth thanks to a strong produce range and long-term support from our shareholders. Being a key player in a favourable industry, with demand for healthy produce, puts us in a great position.

My focus now I’m on board is getting around our business, meeting our people, customers, growers and industry members to ensure we’re best positioned to grow our key markets including New Zealand and keep delivering quality produce year-round.

Can you tell us about T&G’s tomato growing operation?

Tomatoes are in the top three produce lines sold in New Zealand every day and T&G is a key contributor being the largest local tomato grower by volume. Our Beekist™ brand is the most recognised tomato brand in New Zealand and our Beekist™ pre-pack tomatoes are some of the most popular tomatoes enjoyed by New Zealand consumers.

Additional investment over the past five years has enabled us to grow and supply more than 40% of the country’s tomatoes from our five growing sites, with a focus on delivering on taste, colour and innovation.

Our Y.E.L.O variety for example, and more recently our Kumato tomatoes, are examples of that focus. We know consumers are demanding better tasting, natural tomatoes they can trust, and we’re focused on delivering to those needs.

12

FMCG BUSINESS - JULY 2018

T&G Global CEO Gareth Edgecombe

As part of our New Zealand strategy, we’re continuing to assess our growing footprint including our tomato growing operations and intend investing further in the coming year to ensure we can continue fulfilling the growing demand for specialty, flavoursome tomatoes.

How is the transition from commodity trading to value/ brand-led going?

T&G first joined with Auckland growers in 1921 and today we work alongside more than 1500 grower partners across a wider, more diverse produce portfolio. We’ve grown as demand for fresh produce year-round from Kiwis has risen. Consumers also want to know that the fruit and vegetables they’re buying are safe and have been produced ethically and sustainably and many are prepared to pay more for this confidence.

T&G is no stranger to branding having coined the name ‘kiwifruit’ for the previously known Chinese Gooseberry in the 1950s.

Since that time competition, across all

products, in our sector has increased substantially and for our long-term sustainable success we need to have a point of difference to stand out.

Branding is a good opportunity to do this and we’ve had great success with our premium JAZZ™, Pacific Rose™ and Envy™ apples and our Beekist® tomatoes. We see the same with new innovations such as Lotatoes™ potatoes which have established a new lower carb and calorie potato category, won several awards and attracted overseas buyer interest.

Each of our brands has their own unique story and values, with a quality growing programme behind them which consumers can relate to as demand for safe, quality, trusted produce increases globally along with the need to differentiate ourselves from our competitors, as consumers continue to be willing to pay a higher price for quality – and often – branded produce.

Branding also allows us to display country of origin on our packaging to further enhance our brand promises. Our Marketing team is focused on understanding emerging consumer trends both at a global and New Zealand level to further add value to the produce category. We’re also continuing to invest in brands based on consumer research and innovation with several new brands launching this year.

Can you comment on the recent sale of T&G’s kiwifruit assets and T&G Foods operations?

We were very pleased with the sale and smooth transition of our Kerikeri kiwifruit post-harvest operation and kiwifruit orchard assets to Seeka, with the guarantee of jobs for our Northland people and markets for growers. The reason for the sale was to allow the business to focus on key priorities and core assets. The divesting of T&G Foods, our foods processing operation, was done for the

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Consumers are conscious of the carbs and calories they consume which has led to an increase in demand for healthy, great tasting food.

T&G Global are proud to introduce Lotatoes™. A delicious, creamy, melt in your mouth potato with at least 40% fewer carbs in every spud.

Naturally bred Lotatoes™ are proudly grown by Balle Bros and Master & Sons in two of the best growing regions New Zealand has conditions, perfect for growing flavoursome, healthy potatoes.

*Lotatoes™ potatoes contain 40% fewer calories and 40% fewer carbohydrates (per 100gms) than the commonly available Rua and Agria potato varieties.

www.tandg.global

I

www.lotatoes.co.nz

[ Q&A ]

same reasons and again we are pleased to have found a good buyer in Cedenco Foods.

Do you see any challenges or fresh opportunities for T&G? The biggest challenge for any grower of fresh produce is the weather, including those growing under cover as we do with tomatoes. Being a grower, we empathise with those impacted by what seems like increasingly extreme weather. But our industry, our people and our internal and external growers are incredibly resilient and continue to grow and supply healthy produce to consumers here and overseas every day.

The growing focus on sustainability presents an opportunity for our industry and we’re working hard towards more sustainable packaging; more efficient water and energy use in our growing and packing operations and ethical sourcing. We know how important country of origin is to consumers Kiwis want to know where their food comes from, who’s produced it and what impact its development has on the environment.

We also know most Kiwis don’t eat the recommended five plus a day fruit and veggies, so we need to ensure it’s not 14

FMCG BUSINESS - JULY 2018

WE’VE HAD GREAT SUCCESS WITH OUR PREMIUM JAZZ™, PACIFIC ROSE™ AND ENVY™ APPLES.” prohibitive at a price point and provide inspiration to those not sure how to enjoy it.

What are your predictions for the NZ FMCG environment for the near future?

It’s early days for my role at T&G but from my experience in companies such as Coca Cola, Campbells Arnotts and my time on the FairTrade Board, I think it is a challenging and exciting time for the industry. Locally, consumer demand for fresh, crafted products is on the rise. There is an ongoing push for convenience solutions including through emerging new channels and there is clear pressure for retailers to deliver great value, including increased focus on private label.

Across the Asia Pacific region New Zealand consumer goods have a strong history of innovation and a great reputation for quality and taste. Businesses that are able to respond rapidly to these challenges/opportunities will thrive. T&G itself is also in a good position to deliver to a growing demand for health, convenience and provenance, especially with our regional footprint.

What is your top tip for achieving a healthy work-life balance?

For me, broadly speaking it is about work life integration. Often, modern work requires a 24/7 mindset, and there a number of tools and technology that are making it easier to work flexibly anywhere, anytime. This also means that you have to be deliberate about carving out specific times to focus on family, friends and fitness. The idea of being present in the moment, whether it’s work, or home, makes a big difference and so being able to deliberately quickly switch modes and create the focus is a skill that is worth building.

The biggest single tip I have is to maintain a dedicated exercise programme. It’s hard but makes a big difference to energy levels and feeling of wellbeing.

[ Buy NZ Made ]

Empathy beats algorithms attracting tribes to your products

S

elling products has never been more difficult.

Consumers block ads, algorithms throttle brand messages and TV ads are skipped as consumers retreat into digital spaces where their tribe talks free from interruption.

How do brands interrupt those conversations?

It’s not possible, unless you create a remarkable product or experience. This means that one person will remark to another about their experience with you.

How do you create an experience like this?

It means leading with ‘XOX’. Remember your first love? That feeling is magic. It’s that ‘hard to put a finger on it’ feeling that you want people to feel about what you do. It’s when your product or service does something so unexpected, so inexplicable that we are in awe of what just happened, it feels magical. Wow. Culture can be felt, kindness can be felt and caring can be felt. Yes, it’s hard to measure feelings, yet that doesn’t make it less important. In fact, in a post-industrial world, where people form tribes away from interruption advertising it may be one of the only enduring competitive advantages you have left.

‘I have a crush on this brand.’

Remember back to the first time you cracked the top of a creme brûlée or enjoyed freshly ground single origin coffee that was extracted in just the right number of seconds? Or when you walk into a store that felt yourself instantly relax. You can taste when something is made with love.

These are leaps in experience that connect us to a feeling of wonder that we don’t get to experience as often as we’d like. The law of diminishing returns continually bears down on us over time, so we have to keep reinventing ways for it to feel fresh.

Generosity is the second ingredient. When the chef happily shares a koha gift before you place your order, or when the service is affordable because it’s being sold for less than it’s worth.

Now free coffee should never be free, but the magic of being accepted into a generous tribe should be more than enough to

overcome the price of entry.

With free cloud-based software, generosity comes naturally. Platforms like Google, Facebook, Instagram and Twitter let you share your story with the world and do so at zero cost. That generosity feels magic initially until it becomes accepted by the crowd. That’s why you’ve got to keep reinventing the magic.

Crushes don’t last forever.

You need to keep adding magic and that generosity.

What generosity can you bring to your customers?

Ryan is the Executive Director of the Buy New Zealand Made Campaign, working with manufacturers, producers, growers, and exporters to gain market origin advantage for their products through the application of the globally recognised ‘New Zealand Made’ Kiwi trademark. Adding New Zealand Made to your product adds a trusted origin that kiwis love.

Ryan is the author of 100% Kiwi Business: 9 Kiwi Success Navigators based on 100 interviews with New Zealand CEOs and business owners.

What does New Zealand Made mean to you?

Answer two questions here: http://bit.ly/nzmadefmcg to see whether you qualify to display the Kiwi trademark.

Ryan Jennings Executive Director Buy New Zealand Made

YOU CAN TASTE WHEN SOMETHING IS MADE WITH LOVE.”

FMCG BUSINESS - JULY 2018

15

[ fresh produce ]

Best in season

A

big range of imported tropical fruit will be available this month.

Pineapples, strawberries, honey melon, rockmelon and Mexican mangos will provide a point of difference in store and will be popular with consumers who are eager to experience a taste of summer.

Australian Afourer mandarins will be available alongside the tail-end of New Zealand’s Satsuma supply. Afourer is a great-tasting variety – very sweet and easy to peel. July also provides a short window for Californian summer fruit such as nectarines, peaches and plums. Purchase these with caution but if the quality is good, there’s great sales to be had.

Pipfruit season is now at its peak, with every variety of apple and pear in good supply. Kiwifruit and citrus are other key lines to highlight this month, along with remaining sub-tropicals such as persimmons and passionfruit.

Leeks, Brussels sprouts and Asian vegetables are all popular during winter and should be displayed prominently in store.

Australian Strawberries Australia produces great-tasting strawberries at this time of year and they’re airfreighted from Queensland and Western Australia each week.

Consumers will snap them up, so they’re a safe bet.

Storage/handling: Purchase small quantities regularly to ensure fresh stock is turning over.

What to look for: Some Australian varieties are not completely red through their ‘shoulder’ – in some cases it will be white. This year a new variety, Red Rapacity, has a deep crimson colour.

Both these issues are normal characteristics of these Australian varieties so don’t be deterred – they taste great and are full of flavour.

Fungi Shiitake and Oyster are the two most common exotic mushroom varieties that consumers are familiar with. Shiitake mushrooms are widely used in Asian dishes. They have a distinctive fresh earthy flavour and retain their shape when cooked.

Oyster mushrooms are known for their delicate, mild flavour and velvety texture. While mushrooms 16

FMCG BUSINESS - JULY 2018

are available all year round, consumers gravitate towards them in winter for inclusion in casseroles, soups and hearty meals.

Storage/handling: Keep and display mushrooms in their original carton to avoid over handling and bruising. Where possible, display under refrigeration and provide paper bags for customers when selling loose mushrooms.

What to look for: The fresher the better.

Mushrooms should have good colour without signs of damage, bruises or deterioration. Where appropriate, gills should be fresh and upright.

Brussels Sprouts Brussels sprouts are a severely under-rated vegetable that are making a culinary comeback thanks to foodies and celebrity chefs. They should never be boiled to death – encourage consumers to lightly steam, bake or pan-fry them instead with ingredients such as olive oil, bacon, chilli, salt and pepper.

Storage/handling: Display on refrigerated shelving as cool temperatures prevent yellowing.

Buy small quantities regularly to guarantee freshness.

What to look for: Choose Brussels sprouts that are roughly the same size. Avoid any with yellow, loose, soft or wilting leaves.

OYSTER MUSHROOMS ARE KNOWN FOR THEIR DELICATE, MILD FLAVOUR AND VELVETY TEXTURE.”

United Fresh has over 27 years’ experience supporting and promoting the fresh produce industry in New Zealand and providing leadership on pan produce issues. For further information or to become a member of United Fresh, visit www.unitedfresh.co.nz

T

TASTY TREATS

New trends drive sales in biscuits, crackers and cakes.

en years ago, pure delish started on a mission to bring a new level of premium to the breakfast cereal category. After initial resistance from buyers, today you will find a large range of pure delish super premium cereals in the breakfast aisles of most supermarkets around New Zealand.

Not ones to shy away from a challenge, pure delish are now bringing their super premium bites, biscuits, snack bars and slabs to mainstream biscuit and lunchbox categories around New Zealand. “It’s like de-ja-vu”, comments Kaz Staples, Owner/Founder of pure delish, “consumers want quality premium and healthier snacks and are prepared to pay more for them. They want to buy from their local supermarket, in the mainstream aisle, alongside other everyday products, not in specialty sections where products can be overlooked. Our challenge, as it was 10 years ago, is convincing grocery buyers and category managers that this is what the customer wants.”

The range of biscuits/bites, slabs and snack bars are all made by hand the old-fashioned way. Every product is individually weighed, hand-pressed into tins, then baked in the oven by a team of skilled bakers. All ingredients are hand-sorted and checked to ensure only the highest quality are used. The company’s ethos is based around making products that first and foremost must taste amazing. Their products are filled with ‘real’ ingredients and are free from artificial colours, flavours, preservatives and sulphites.

Global trends and consumer demands for grain free, 18

FMCG BUSINESS - JULY 2018

gluten free and dairy free also mean that the pure delish range ticks many boxes for allergen sufferers. pure delish recently launched a deliciously decadent ‘passion & coconut bite’ with the tangy taste of pure passionfruit, nutritious almond meal and the goodness of organic coconut. The new bites are packed full of flavour and continue the company’s commitment to using ‘real’ and quality ingredients. They are also naturally grain, gluten and dairy free.

You will find this amazing range of biscuit/bites, snack bars and slabs in leading independent food stores and supermarkets throughout New Zealand. pure delish are committed to growing this premium bakery category for the consumer, who are crying out for a more ‘real’ natural and healthy option to what is currently available.

If you would like further information on ranging please contact Mike Douglas at pure delish, mike@ puredelish.co.nz or call 09-5745701.

CONSUMER DEMANDS FOR GRAIN FREE, GLUTEN FREE AND DAIRY FREE ALSO MEAN THAT THE PURE DELISH RANGE TICKS MANY BOXES FOR ALLERGEN SUFFERERS.”

[ category insights ]

News from I Love Food Co I Love Food Co has the I Love Pies gourmet pie and sausage rolls and I Love Baking cookie brands in supermarkets across New Zealand. Last May saw the launch of the I Love Baking Brand, a range of cookies that are sweetened with date puree.

“They also contain wholegrain oats, and don’t contain any nasties,” says Dene Brosnan, GM I Love Food Co. Brosnan explains: “The original range comprised four cookie flavours in a pouch format shaped like a cookie jar, and we’ve just launched a new individual serve 50g ‘Big’ Munchy Choc Chip. The ‘Big’ cookies are now stocked in Z Energy stations.

“We have also introduced two new flavours to add to the pouch range that are focused at kids; Cheeky Choc-Nana (with giant banana sprinkles), and Rainbow Choc-Magic Cookies (with giant rainbow sprinkles and chocolate chunks). Finally we have just introduced a Peanut Butter Choc Chunk cookie to the pouch range. None of these cookies have refined sugar, or any artificial colours, flavours or preservatives.”

Brosnan says: “The response to the I Love Baking range has been phenomenal.

Consumers have responded positively to the fact the cookies are sweetened with date puree, and don’t have any nasties. They are ranged in over 300 supermarkets across New Zealand, and in Farro Fresh. There are strong sales across the current range and it is helping premiumisation of the category.

“The I Love Baking brand is based on the proposition of a ‘betterfor-you biscuit’ just like you could make at home. A key insight we had was that commercially available biscuits didn’t meet consumers’ needs in terms of both taste and ‘wholesomeness’ – they have long ingredient lists and are often made with palm oil and other things that you would never find in your pantry

NEW

at home. We felt that other commercial biscuits have not reflected consumers’ demands for less refined sugar and better quality ingredients. To our knowledge no any other biscuit on the market uses date puree as a sweetener. As well as reducing some of the sugar used, dates have health attributes including fibre, protein and essential nutrients such as potassium.

Consumers also want to be able to buy something in a supermarket that is high quality at an accessible price. We also felt nothing on offer addressed the need for consumers to feel good about their biscuit purchase. The key proposition is that the cookies are ‘made by mums’, which resonates with the target consumer,” says Brosnan.

As Kiwi as Ginger Crunch is as Kiwi as it gets and you’d be hard placed to find a more nostalgic slice.

“This Kiwi favourite has been making an appearance in New Zealand cookbooks for decades, no wonder it only takes one bite to send you tripping down memory lane,” says Marketing Manager Kirsty Heron.

She explains: “Explosive Ginger bites have recently been added to Loaf’s range of handcrafted mini bites. Don’t worry, they haven’t messed with the recipe, it’s still the same delicious combination of butter, flour, sugar, ginger and golden syrup.”

Heron says: “The new ginger bites are proving to be very popular after just four weeks on the market they’ve already shot

Contact your DKSH New Zealand Limited representative for more information

[ category insights ] to the fourth biggest seller in the range, challenging the all-time favourites rocky road, gooey caramel and brownie bites. Be sure you add ginger bites to your line up!”

For more information contact kirsty@loaf.co.nz or phone 021 242 5370.

Molly Woppy’s Artisan Range Molly Woppy was born in 2002 from a love of baking, preparing (and devouring!) delicious treats.

Owners Alistair Parker and Hayley Molloy baked up a plan to fill a gap in an expanding market; a premium, artisanal range of cookies available to every household.

Fast forward to 2018 and sticking true to their core value of handmade, Molly Woppy launches the Artisan Cookie Range, baked using only premium, quality ingredients and free from anything artificial.

Molloy and Parker explain: “We use simple, minimal processes to maintain the integrity of the ingredients and finished product.

Our product contains natural quality ingredients that a consumer can recognise, associate with and find in their own pantry at home.

“The modern, savvy consumer is actively wanting to know where their food originates from. At Molly Woppy we bake, package, and distribute our cookies in house.

“The Artisan Range consists of six delicious flavours providing true homestyle baking for those who don’t always have time, or the lifestyle, to bake their own: premium convenience straight from the box. There are also gluten free and dairy free options for consumers with these dietary requirements.

“The Molly Woppy Handmade Artisan Range is now available nationwide, offering an everyday premium indulgence for all,” say Molloy and Parker.

For more information, contact the sales team at Molly Woppy on ph 09 828 6095 or email sales@mollywoppy.co.nz.

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 showcase your products in upcoming category reports, please email jbremner@intermedianz.co.nz.

Stands and partnerships

NOW AVAILABLE don’t miss out this year!

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7,000

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www.chocolatecoffeeshow.co.nz Contact: Sam swood@intermedianz.co.nz | Heather hlowrie@intermedianz.co.nz

NEW Market-leading rice crackers Andrea Crutchley, Senior Client Manager, DKSH New Zealand Limited told FMCG Business: “Peckish maintains its position as market leader and market innovator of the Rice Crackers segment, sitting at 49.6% $ sales (TKA market share MAT to 20/05/2018) of Total Rice Crackers and sit within the overall growth category of Crackers ($179M growing at +4.3% MAT $ Value). Rice Crackers as a segment is evolving to have clear sub-segments; White Trays – all about flavour and punch, Better for You – for consumers seeking better for you snacking options, Boxed/On the Go offering consumer convenience. Peckish is ensuring health and growth in each of these sub-segments, as well as keeping the brand top of mind with consumers, through our exciting new launches in July 2018. Peckish Brown Rice Rosemary & Sea Salt and Paprika offer strong NPD to the successful Peckish Brown Rice portfolio, and will satisfy consumer demand for new news. Peckish Sriracha offers NPD in the white tray space, and delivers on the flavour punch consumers seek. To offer consumers ‘better for you’ on the go options, we are excited to launch Peckish Brown Rice Snack Packs Lightly Salted and No Salt, which are perfectly positioned for an office snack and perfectly complementing the existing Peckish Snack Pack range.”

They’ve launched four flavours of rice crackers. The only NZ made flavoured rice cracker to add an all-natural, gluten free product to the category and satisfy the loyal New Zealand consumer. The range includes Salt & Vinegar, BBQ, Original and Sour Cream & Chives.

In addition they have added a new range of Grain Crackers branching out with Rye and Corn based flour, as well as the classic Oat base. The range includes Corn & Chilli, Oat & Cranberry and Rye & Caraway.

In the background they have been collaborating closely with another iconic Wellington Brand, Panhead Custom Ales. Using the by-product of brewing, Rutherford and Meyer take the spent grain and start the process of making something special. The bakers up-cycle the product by adding flour, to create a high fibre cracker with real charisma. These two charismatic crackers are available in Rock Salt and Parmesan.

These Spent Grain Crackers are great as a snack or on a platter with cheese and accompaniments.

2018 still holds a few more surprises from the Team in Wellington, so watch this space.

New launch from Rutherford and Meyer Rutherford and Meyer have been very busy at their Wellington production kitchens over the past year, extending production capacities and trialling new concepts.

Nielsen Scantrack - Total Supermarkets - MAT to 20/05/2018 Val Sales

Val % Chg YA

T. Total Biscuits Incl Rice Wafer Cakes

422,760,738

2.8%

T. Cracker Biscuits

119,827,509

6.9%

T. Enrobed Biscuits

84,358,430

-1.7%

T. Cookies

55,214,383

8.7%

T. Plain Sweet Biscuits

51,077,702

-1.6%

T. Rice Crackers

43,641,328

-2.0%

T. Childrens Biscuits

28,418,741

-7.2%

T. Cream & Jam Biscuits

24,111,529

23.3%

T. Rice Wafers/Cakes

11,586,994

-3.3%

T. Assorted Biscuits

4,524,122

11.9%

T. Dried Cake & Biscuit Mixes

12,931,783

2.0%

T. Mixes & Batters

6,526,953

4.3%

Contact your DKSH New Zealand Limited representative for more information

HEALTH & WELLNESS Vitamins and Supplements are in big demand for winter.

B

lackmores NZ combines traditional naturopathic expertise with scientific research to bring natural health products to Kiwis that they can trust to help them achieve optimal health and wellbeing. “Blackmores are leaders in the growing natural health category and have leading products in Stress, Pregnancy and Eye Health,” says Merilyn Nordin, Blackmores NZ Marketing Manager.

Blackmores has recently launched two new innovative product ranges and continues to grow market share in Probiotics and Kids Health. The Blackmores Probiotics+ range covers Immune, Kids, Skin and Bowel health.

“Probiotics are becoming increasingly popular for the positive effects on gut health and more and more consumers are turning to Probiotics for holistic wellbeing,” says Nordin.

“The new Blackmores SuperkidsTM range offers shoppers a healthy alternative, to help Mum and Dad fight fussy eaters with 99% Sugar Free Gummies and Chewables sweetened with naturally derived ingredients xylitol and sorbitol. The extensive Blackmores SuperkidsTM range covers Multis, Immune, Omega and Growing Bones all with delicious fruity flavours.”

Red Seal – new look coming this winter Red Seal is owned by Endeavour Consumer Health and has a rich history, dating back to 1923. “Maintaining a strong number two position in the vitamins category and valued at $18m retail, Red Seal offers a large range of supplements,” says Cyndi Mellish, Senior Brand Manager at Red Seal.

More recently, the brand has stretched into a more premium space in supermarkets, with their High Strength range.

Mellish explains: “Red Seal supplements continue to show both strong volume growth (+6%) and value growth (+8.6%). Innovation has been a key priority for Red Seal over the last few years and this has delivered rewarding results.

“The two key success stories for Red Seal from the last 12 months are High Strength Turmeric, which remains very much on trend, and the launch of VitaFizz, a vibrant new effervescent range. VitaFizz has contributed $770k retail value in its first year of sales, demonstrating the popularity of enjoying Red Seal supplements in this refreshing new way.

22

FMCG BUSINESS - JULY 2018

“Last year’s VitaFizz launch was the introduction of a more energetic look for the Red Seal brand, which was well received by consumers.

This month a similar, bright look will be rolling out across Red Seal’s core supplement range. This modern new look will also increase shopability within the range, with similar products grouped by colour,” says Mellish.

The number one focus for winter is the roll out of the new packaging. There is more exciting news to come over the next 12 months for Red Seal, so do watch this space!

Source: IRI MarketEdge, MAT to 13/05/18

Healtheries Healtheries is a brand with over 110 years of history, brand heritage, trust and credibility.

Rachel McKendry, Marketing Manager – Healtheries Supplements explains: “We are the #1 brand in Dietary Supplements across Total New Zealand. Sold predominantly in New Zealand Grocery we are the market leading brand with 36.5% MAT share and growing year on year with retail sales of over $30.9million*. Awarded

by Reader’s Digest as the Most Trusted Vitamin and Supplements brand 12 out of 12 years, we are extremely proud to be the #1 brand in the Dietary Supplements Market. Topping the vitamin and supplements category for the 12th time is a real honour. We consider it a great privilege that New Zealanders trust our vitamins and supplements when it comes to their wellbeing. We are committed to producing high-quality products for New Zealanders at every age and stage in life.

“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.

“Turmeric is the talk of the town and three new Turmeric products join our ever popular Turmeric family. NEW GLUCOSAMINE + TURMERIC is a specialised dual action formula which combines two powerful ingredients, Glucosamine and Turmeric, to help rebuild cartilage and maintain strong healthy joints. NEW MAGNESIUM + TURMERIC combines Magnesium and Turmeric, to help support both muscles and joints along with relaxing body and mind. NEW TURMERIC 17,000+

[ category insights ] HIGH STRENGTH 1-a-day capsule is a high Ethics Natural Relief Chills & Ills/Extra has a special strength Turmeric to support joint health, comfort combination of herbs and natural ingredients to attack and mobility. and help alleviate cold and flu symptoms. Deejay “To support energy and digestive health, O’Dowd, Grocery Account Manager for Multichem the Healtheries Multivitamin range has been explains that “Ethics Natural Relief Ills & Chills/ reformulated to include Probiotics. MEN’S MULTI Extra are all natural products which consumers WITH PROBIOTICS and Healtheries WOMEN’S will understand the benefits of. Additionally, Ethics MULTI WITH PROBIOTICS are specifically formulated Natural Relief Ills & Chills/Extra can be taken by 1-a-day tablets to top up your nutrient intake. children from 9-years of age. We know that this Combining essential nutrients including Ginseng and B type of natural product works, as in the Australian Vitamins to support energy, the addition of an advanced market there are now several brands of natural cold probiotic, Bacillus coagulans (a scientifically researched Probiotic) can & flu relief, including private label brands.” help support digestive and immune health too.

Ethics Natural Relief is available now in two formats to satisfy “Natural health continues to grow in a very positive way. The specific consumer requirements. For more information contact your Dietary Supplement market continues to grow as consumers are Alliance Marketing territory manager or Multichem 09 488 0330. looking for natural alternatives and easy ways to top up their health.

At Healtheries we know that you can’t maintain a Nielsen Scantrack - Total Supermarkets - MAT to 20/05/2018 #1 brand without constantly innovating to meet Val Sales Val % Chg YA consumers’ needs,” says McKendry.

T. Total Health Supplements 126,005,419 6.3% Always read the label and use only as directed.

T. Vitamins 40,171,283 4.0% Vitamins and Minerals are supplementary to, and not T. Nutritional Supplements 16,201,342 5.7% a replacement for, a balanced diet. *IRIMarket Edge Dietary Supplements MAT 29/04/18

NZ’s ONLY Natural Day/Night Cold & Flu Relief The Ethics brand of over the counter painkillers, along with cold & flu treatments are well known to consumers for high quality products and value for money. A unique and natural addition to the Ethics range of cold & flu treatments is Ethics Natural Relief Chills & Ills/Extra.

T. Nutritional Sports Bars

16,000,839

8.7%

T. Other Health Tablets

13,922,304

7.4%

T. Minerals

12,634,639

6.6%

T. Grains And Seeds

11,338,580

17.6%

T. Fish Liver Oil

7,425,039

-4.1%

T. Herbal Supplements

6,933,655

8.4%

T. Garlic Tablets & Capsules

1,252,652

2.8%

T. Homeopathy

82,629

34.8%

T. Tonic Supplements

37,731

139.9%

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 showcase your products in upcoming category reports, please email jbremner@intermedianz.co.nz.

Get back into life with

natural relief New to New Zealand Natural Day/Night DAY /NIGHT Cold and Flu Relief!

NEW and UNIQUE to the New Zealand Grocery Market Can be used by children from 9 years old Medicine heritage give ETHICS credibility Partner with Multichem to add value to the Cold and Flu Category

BABY CARE

A snapshot of market-leading products in a multi-million-dollar category.

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

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

9m+

6m+

9m+

12m+ 18m+

12m+

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

24

FMCG BUSINESS - JULY 2018

W

hen you have a baby or toddler to look after, life can get super busy. Parents are thankful when their local supermarket provides a quick and easy one-stopshop for all the essentials a family needs - from baby’s first bottles to comforters and toddler cups.

Philips Avent is the market leader in the Baby Accessories category with 33.4% share (IRI New Zealand Grocery Dollar Share Quarter to 10th June 2018) and is growing ahead of the category, says Michelle Rice, Brand Manager, Endeavour Consumer Health.

The Philips Avent product range covers all the key baby feeding essentials; from their anti-colic Classic+ bottles and teats, to their range of orthodontic soothers and toddler cups for the various stages of independent toddler drinking.

Rice says: “Philips Avent dominates the comforter (soother) segment with 81% segment share (IRI New Zealand Grocery Dollar Share Quarter to 10th June 2018) with a wide range of soothers to suit all ages from newborn to toddlers including a new 18m+ freeflow fashion soother available in two cute designs. Their freeflow soothers feature additional holes for improved airflow and comfort while the night-time soother features a convenient ‘glow in the dark’ ring.

“Philips Avent Classic+ range of anti-colic bottles, has been trusted by mums since 1984 and continues 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 help reduce colic and discomfort. Philips Avent have 40% share of the bottle and teat segment with a range of bottles from 125ml to 330ml sizes.

“The Philips Avent range of toddler cups, are designed to help develop independent drinking skills. The entry level Easy Sip cup with its flexible soft spout for easy drinking is a perfect first choice, the Sip no Drip cup with its angled bite resistant spout, ergonomic easy grip handles and leak proof valve is a great option for confident independent drinking and features cute new fish and crab designs. The new Bendy Straw Cup

[ category insights ] enables drinking to the very last sip with a leak proof valve and flip top lid while 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,” explains Rice.

New releases from Tommee Tippee “Tommee Tippee is the number 1 Baby & Feeding brand in New Zealand,” says Jock Schoeller, Sales and Marketing Director Newborn Brands (NZ) Limited.

He explains: “Tommee Tippee advertises its Closer to Nature soothers in Oh Baby and Bump & Bay and supports them further online.

“Tommee Tippee Closer to Nature silicone soothers have a 68% first time acceptance rate by babies (Baby Approved) in an independent product trial conducted by Swift research (February 2013 with 112 mothers and babies).

“We make this claim on all our soother packaging to support parents and ensure their confidence when buying Tommee Tippee Closer to Nature soothers.

“More babies accept our soothers first time.”

Schoeller adds: “Tommee Tippee’s symmetrical orthodontic shape is designed to support natural oral development and is based on the Closer to Nature breast-like teat that encourages easy breast, bottle and soother changes. Designs are continuously updated with soft changes to enhance Mums’ interest and support shelf interest.”

“Tommee Tippee Closer to Nature is just releasing new Newborn 0-2m and Toddler 18-36m soothers, as these two markets have shown a lot of opportunity to grow the Baby Market,” says Schoeller.

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.

Nielsen Scantrack - Total Supermarkets - MAT to 20/05/2018 Val Sales

Val % Chg YA

T. Total Baby Food

134,494,639

16.1%

T. Infant Formulas

96,490,694

21.0%

T. Baby Food

32,653,019

7.0%

T. Baby Rusks

3,865,881

-7.2%

T. Baby Cereals

1,485,045

4.0%

T. Total Baby Needs

47,286,407

5.1%

T. Moist Towelettes

30,489,049

6.9%

T. Baby Creams

3,019,428

5.9%

T. Baby Skincare

2,918,126

5.4%

T. Bodywash & Shower Gel

2,434,920

6.4%

T. Shampoo

2,066,306

-0.2%

T. Talcum Powder

1,563,957

-0.1%

T. Baby Jellies

1,089,369

11.8%

T. Baby Medications

985,441

-0.5%

T. Bath Additives

938,750

6.8%

T. Nursing Pads

930,606

-14.8%

T. Solid Soap

458,594

-13.9%

T. Antibacterial Treatments

307,125

-4.0%

T. Conditioning Aids

84,736

-31.4%

T. Total Baby Accessories

7,514,222

-1.4%

T. Infant Feeding Accessories

5,276,203

-1.8%

T. Infant Cosmetic Products

1,743,076

-0.4%

T. Infant Clothing & Bibs

358,444

2.5%

T. Infant Toys

112,845

-11.5%

T. Infant Nursing Products

23,655

12.5%

125ml

260ml

330ml

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

FMCG BUSINESS - JULY 2018

25

[ good business ]

Micro changes add up to something pretty big

Steve Anderson, CEO Foodstuffs South Island

On World Oceans Day last year Foodstuffs announced they would pull all microbead products from their shelves; a full year ahead of a government ban. This year, Foodstuffs is showing just how well their customers have taken to recycling and to making small changes which have a major impact.

“We care deeply about our community, our people and our planet.

Foodstuffs is doing everything we

can along with our customers to reduce our environmental footprint, and nowhere is it more evident how much this matters than in Kaikoura,” said Steve Anderson, CEO Foodstuffs South Island, at the unveiling of a gift for Whale Watch Kaikoura – a seat made from recycled microbeads and soft plastics.

“Here, New Zealanders and international visitors are able to get up close and personal with some of the most amazing creatures on Earth and we’d all like to be able to ensure this for generations to come. Getting plastic out of our oceans is a top priority. When we announced our microbead ban we invited customers to swap old microbead products for new microbead-free Essano products – made by another fantastic New Zealand owned and operated company. The tubes and containers we collected were recycled and we captured the microbeads to ensure they didn’t make their way down the drain.

The beads were blended with soft plastics, collected from our stores, by the team at Replas and MetalArt, and we’ve created the bench seat that we are donating to Whale Watch Kaikoura.”

Foodstuffs have also announced they will ban plastic stemmed cotton buds by October this year.

“What’s more, we have outlined our support for the NZ Plastics Packaging Declaration, which will see less and less waste end up in landfill and on our beaches,” says Anderson. “All these changes with the support from our customers add up to a big and positive impact on the environment.”

Countdown moves to recycled plastics More than 177 tonnes of virgin plastic will no longer be imported into New Zealand each year, with Countdown moving dozens of its bakery and delicatessen items to locally sourced recycled PET (rPET) packaging. Flight Plastics Ltd, which is New Zealand owned and operated, will now be providing 19 rPET packaging products for Countdown’s in-store bakeries and delicatessen.

The announcement was made at an event hosted by Countdown to discuss the challenges and opportunities associated with building a circular economy.

Countdown’s General Manager Corporate Affairs, Kiri Hannifin, says the move to use Flight Plastics’ products is positive news for the environment. “Countdown is looking for any, and all, opportunities to do our bit to protect New Zealand’s precious environment - using more recycled plastic products and introducing less virgin plastic into circulation is just one way we can do this.

“Flight Plastics have invested significant time, energy and resource into producing innovative packaging solutions that are better for our environment. We are proud to be working with them and using their products in our stores.”

CEO of Flight Plastics, Keith Smith, explains: “Products made at Flight Plastics won’t need disposal after use – they can be recycled 26

FMCG BUSINESS - JULY 2018

again and again as customers return them via their recycle bin.”

The new recycled rPET products will start appearing in Countdown stores from August 2018 and will play an important role in Countdown’s drive to deliver 100% reusable, recyclable, and compostable packaging by 2025.

[ FGC ]

Be Treatwise

N

ow they’re going too far. As if years of using erroneous figures as “evidence” to back calls for taxes on sugar in everyday foods and beverages wasn’t bad enough, anti-food campaigners are now turning to some of the things that bring a little joy to our lives – treats.

What’s got me rolling my eyes is a study out of Melbourne University, where researchers looked at the effectiveness of ugly picture warnings on “treat” foods such as chips, chocolate bars, and biscuits.

They did this because of what they said was growing evidence that “food cue exposure activates conditioned appetitive physiological and psychological responses that may override current metabolic needs and existing eating goals, such as the desire to maintain a healthy diet”.

The researchers showed health warning messages, pictures of snacks, and pictures such as unhealthy hearts, to 79 people and recorded their responses

by EEG (electroencephalographic) as well as written questions. They say their findings showed that the brain activity of participants while looking at the pictures indicated they “would exercise self-control” and make the healthier food choices if exposed to graphic product health warnings.

They didn’t make any recommendations, but their implication was clear: put graphic pictures and warnings, like those on cigarette packs, on to treat packaging, and people will stop eating them.

But that’s a silly idea.

There’s no evidence people would stop eating treats (which they enjoy) and switch to healthier foods just because of a picture. And the image of a fatty heart on a chocolate label would be misleading and false, because enjoying chocolate or other treats in moderation does not cause heart disease or any other grizzly images that health campaigners might want on a label.

The researchers admit the research was done in a laboratory (i.e. not real life), so it’s hardly surprising it bears little resemblance to the reality of how and why most people eat treats – because they want to. Because for some it might be that little bit of joy in their day.

As the Nutrition Council says, most consumers know there’s a way to enjoy these foods without them being harmful, as long as they really are occasional.

That’s the aim behind the ‘Be Treatwise’ logo that appears on most confectionery in New Zealand and Australia. It’s an industry initiative that’s designed to explain to consumers that confectionery is a treat food to be enjoyed as part of a balanced diet and active lifestyle. The logo and the ‘Enjoy a balanced diet’ message on packs encourages them to be mindful of the energy content in the treats and to consider them as something to be enjoyed sometimes and in small amounts.

This is supported by easy-to-understand serve sizes to explain the energy value of each treat. Where possible, the maker translates the serve-size quantity, i.e. “per 25g” with the use of a descriptor, such as “per row” in a block of chocolate, “per 2 snakes” in a bag of sugar confectionery, or “per x pieces”.

It’s a message that seems to be getting through. Research by Nielsen shows that 56% of Australians interpret or understand the Be Treatwise message as “a food that can be eaten occasionally”, while a further 17% interpret or understand it as “a food that can be eaten rarely”.

That’s a fantastic level of understanding that shows initiatives like this do help people make healthier choices. The Health Star Rating scheme does this across categories of everyday foods and beverages.

I’m sure most people would prefer anti-food campaigners to leave them alone to enjoy their treats in peace – and moderation.

Note: Treat makers can apply to use the Be Healthwise logo at no cost, but subject to compliance conditions, by contacting the Food and Grocery Council, which manages the trade mark in New Zealand.

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

TREAT MAKERS CAN APPLY TO USE THE BE HEALTHWISE LOGO AT NO COST.”

FMCG BUSINESS - JULY 2018

27

[ good business ]

SWITCH ON

Showing retailers the benefits of contactless payments.

C

ontactless payments are growing in popularity and the ‘Switch On’ campaign is back to demonstrate the benefits of contactless payments for retailers.

The campaign profiles a diverse range of successful New Zealand businesses who are using contactless payments on the Switch On website, www.switchonnz.co.nz.

Almost three quarters of Kiwis are using contactless payments (73%), according to a recent Mastercard survey of over 1,000 New Zealanders, and contactless technology is increasingly becoming part of New Zealanders’ everyday lives.

“With more New Zealanders using contactless payments as their preferred way to pay, it is important that New Zealand retailers switch on their contactless payment capabilities to meet this growing demand,” says Ruth Riviere, Country Manager for New Zealand and the Pacific Islands.

More than one third of New Zealanders said they get frustrated when retailers have not turned on the contactless functionality on their terminals.

“Kiwis value speed, convenience and ease when choosing where to shop and how they pay.

While there is a small fee for accepting these transactions, for retailers the benefits are faster queues, reduced cash handling, and satisfied customers, but perhaps even more importantly, future-proofing their business for emerging payment technologies, such as mobile payments, wearable technology and biometrics as these enter the New Zealand market,” says Riviere.

Switch On profiles a range of Kiwi businesses in a number of industries about how contactless technology is helping to provide great service and choice for their customers.

Kate Chatsunthornwong, Owner of The Dumpling Box in Auckland, says: “We enabled contactless payments from when we opened because we knew it was the quickest and most convenient payment solution for our customers. When people come in for lunch they don’t have time to wait in line, and by having contactless we are able to process payments faster. We often have customers ask us if we offer Tap & Go before they even order, so by offering it we definitely get more sales.”

Shane Howell, Chief Product Officer, Westpac, says: “Given consumers are increasingly using 28

FMCG BUSINESS - JULY 2018

contactless payments, it’s important that retailers offer choice to their customers. Businesses across New Zealand are contacting their bank to switch on to contactless, receiving the benefits as well as future-proofing their business.”

Retailers can find out more about the benefits of contactless technology, how it can help their business, and challenge some of the common misconceptions around contactless acceptance at switchonnz.co.nz.

About the research This monthly Perceptive Omnibus surveyed 1007 New Zealanders online in January 2018 using a nationwide sampling framework. The results are then weighted to Statistics New Zealand census gender, age and location data. The survey and its accompanying reports do not represent Mastercard’s financial performance.

ALMOST THREE QUARTERS OF KIWIS ARE USING CONTACTLESS PAYMENTS.”

About Mastercard Mastercard is a technology company in the global payments industry. Their global payments processing network connects consumers, financial institutions, merchants, governments and businesses in more than 210 countries and territories. Mastercard products and solutions make everyday commerce activities – such as shopping, traveling, running a business and managing finances – easier, more secure and more efficient for everyone. Follow them on Twitter @ MastercardAP, join the discussion on the Beyond the Transaction Blog and subscribe for the latest news on the Engagement Bureau. www.mastercard.com

About Switch On Switch On is a joint initiative between Mastercard and four New Zealand banks, ANZ, ASB, BNZ and Westpac.

The aim of Switch On is to deliver acceptance development initiatives to benefit card acceptance in New Zealand.

[ legal advice ]

Are you meeting your obligations as landlord or tenant?

T

he Health and Safety at Work (Asbestos) Regulations 2016 came into full effect on 4 April 2018. These regulations impose obligations on commercial tenants and landlords in relation to the identification, management and removal of asbestos in the workplace.

What are your obligations?

The purpose of the Health and Safety at Work Act 2015 (“Act”) and Health and Safety at Work (Asbestos) Regulations 2016 (“Regulations”) is to minimise risks to health and safety in the workplace.

The Act requires persons conducting a business or undertaking (“PCBU”) to ensure the health and safety of workers and other people who have contact with their business or undertaking. Under the definition of PCBU both a landlord and tenant of a commercial tenancy can be considered PCBU’s.

The Regulations place an obligation on all PCBU’s with management and control of the workplace to identify asbestos or asbestos containing material (“ACM”) in the workplace. If asbestos or ACM is identified, PCBU’s are required to ensure a written asbestos management plan is prepared, kept up to date and reviewed under certain circumstances, i.e. if asbestos is removed or disturbed, or five years have passed since the plan was last reviewed.

The Regulations also create obligations regarding the removal of asbestos. These include (but are not limited to) duties of PCBU’s to ensure asbestos is removed by a licensed removalist, to inform affected persons of any removal work and to limit access to the removal area.

Failure to comply with the Act and Regulations is an offence and could result in imprisonment or substantial fines.

of their obligations, however they can enter into arrangements with each other to allocate how costs should be shared.

What should I be doing?

Unless there is evidence confirming the property is asbestos-free, a consultant should be engaged to undertake an asbestos survey, otherwise it will be assumed that the entire property contains asbestos and/or ACM. If a survey is undertaken and it reveals that the property contains asbestos and/or ACM a written asbestos management plan is required to be prepared and implemented. If the survey reveals that asbestos removal is required the asbestos removal regulations will need to be complied with, and the plan will need to be updated accordingly.

The standard form Auckland District Law Society Deed of Lease is silent as to the management of asbestos-related risks, so going forward it would be wise for landlords and tenants alike to include an express provision in the lease as to how asbestosrelated costs should be shared.

When purchasing commercial property, purchasers should also incorporate into their due diligence investigations a review of current asbestos survey and management plans, to avoid unintended non-compliance.

Note: we have only highlighted some of the obligations imposed by the Regulations. Further guidance can be found on the Worksafe New Zealand website (https://worksafe.govt.nz/topicand-industry/asbestos/), and legal advice should be sought if you have any questions about your obligations.

Courtney Henley-Smith is a Solicitor at Steindle Williams Legal specialising in the areas of commercial law and property. www.swlegal.co.nz

A CONSULTANT SHOULD BE ENGAGED TO UNDERTAKE AN ASBESTOS SURVEY.”

What happens when both landlord and tenant have overlapping duties?

Where multiple PCBU’s have duties in relation to the same property, all PCBU’s must carry out their duties but they are not required to duplicate their efforts, instead they are required to consult, co-operate and co-ordinate their activities. This does not necessarily mean responsibility must be shared equally, instead the duty to manage asbestos risks will depend on the ability of each PCBU to influence and control the asbestos risks.

The Act does not allow parties to contract out FMCG BUSINESS - JULY 2018

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[ sustainability ]

We all need to play our part to be more sustainable

A

Kiri Hannifin Countdown’s General Manager Corporate Affairs

DEALING WITH PLASTIC AND MOVING TOWARDS A CIRCULAR ECONOMY IS COMPLEX AND REQUIRES AN INDUSTRY-WIDE APPROACH.”

30

FMCG BUSINESS - JULY 2018

t Countdown, we know we have both the responsibility and opportunity to do the right thing by our people, our communities and the planet. It’s a responsibility that sits at the heart of everything we do, and one that matters deeply to the 18,500 members of our team.

One of our core values is to make Kiwis' lives a little better every day - this doesn’t just mean being a great grocery business, but also doing whatever we can to protect the beautiful country we live in. Countdown is a green brand in more ways than one and we are very ambitious about the difference we can make.

In October 2017, we became the first supermarket brand in New Zealand to commit to phasing out single-use plastic carrier bags at the checkout and online by the end of 2018. The customer response to the removal of these bags in ten of our stores has been really positive and planning is now underway for more stores to join this roll-out. We’ve also introduced the ‘Bag for Good’ programme ensuring sustainability can be accessible and affordable for all Kiwis - something we are really committed to helping with.

At the end of 2017, we announced 20 new corporate social responsibility commitments.

Six of these relate to the environment including working towards zero food waste to landfill, reducing carbon emissions and raising awareness of sustainably sourced products. All 20 commitments targets align with the United Nations’ 2015 Sustainable Development Goals.

We have a lot to do but we are working as fast as we can to deliver on each of these commitments. We are really proud of what we

have achieved to date and the steps we have taken in recent months, particularly the new partnerships and relationships we are forming in pursuit of a better New Zealand.

Reducing the need for plastic One of the commitments we are making some good progress towards is our work to improve the recyclability of our own products and move towards a circular economy. We recognise the inherent problems with the current ‘make, use and discard’ model we operate in and want to play our part in moving away from it. Wherever possible, we want to reduce the need for plastic and packaging in the first place. Where packaging is needed, we are committed to ensuring it’s made from sustainable material that can be recycled or, better still, can be reused again and again.

In this regard, on 5 June, Countdown, SuperValue and Fresh Choice joined a Government-led pledge to use recyclable, reusable or compostable packaging by 2025 or earlier.

We’d already made steps in the right direction, by moving away from single use plastic bags, moving to rPET meat trays and taking plastic packaging off our bananas. All areas of our business are focused on finding and introducing alternative and sustainable options where we can. Moving forward, you’ll see more and more examples of these options appearing in our stores.

While we aren’t waiting till 2025 to make changes, we are realistic about the enormous task ahead of us. Dealing with plastic and moving towards a circular economy is complex and requires an industry-wide approach with more research, innovation, end of life solutions, better infrastructure and the support of consumers and the Government.

The number of our suppliers who are keen to work with us and drive change within their own brand has been heartening. It is a collective movement that will ensure we change the attitudes and behaviours of Kiwis towards plastics.

We all have to make changes, commit to work together and most importantly ensure whatever we are going to do is truly sustainable.

[ export ]

The crafty way to cider success

W

hen I spoke to Josh Townsend, CEO of Zeffer – winner of the world’s best cider title – he was in the middle of playing host to two leading Chinese craft beer brands: Nbeer and Glass Hammer.

What’s that all about? Their presence is part of a significant milestone in Zeffer’s international growth. I discovered that New Zealand’s largest independent cider producer is about to make huge inroads into the Chinese market through collaboration.

“We’re making two collaboration ciders to launch in the Chinese market co-branded under the Zeffer name,” explains Townsend. “I was in China last year talking to these brands about how we could integrate more closely with the Chinese consumer from a cider perspective, and I suggested they come to New Zealand and we make a collaboration cider to launch on tap in their brew and craft beer bars throughout China.

“The idea was really well received, and earlier this week we had a leading craft brewer from Shenzhen over to make a collaboration cider.”

While China is obviously Zeffer’s focus at the moment, Townsend says they’re conscious of how quickly the market can move and it is a risky place to do business. So they plan to build up two more export markets over the next 12-18 months – quite likely Australia and the US, but it’s not been decided yet, they are still learning and researching.

Townsend says every experience is feeding what they do, and he has learnt from a young exporter perspective that before you send any product to a market, you need to immerse yourself in that market. “You need to do inmarket visits to explore what’s happening in the market, the distribution options, potential consumers and customers – for Zeffer that was the bars.

“Do not rely on feedback from a distributor about where the opportunities are. You need to go and find out for yourself,” says Townsend.

“Find out if there’s an opportunity, and then if that distributor is the best partner to help you capitalise on that opportunity.”

Timing is everything Zeffer first spoke to their current distributor about market entry over four years ago and were advised it was too early. Then about two years ago, an MBA team did a project on Zeffer’s path to market into Shanghai. At the same time, the distributor called to say: “We think the time is now right for cider in China.”

Townsend then went to China six times last year to make sure they had the right people on the ground, to get the pricing strategy right, and to get a real feel for the market, especially when he was operating from New Zealand.

Zeffer has now employed a market manager in China to be permanently on the ground there, and give the market the time and attention it needs. They chose a Kiwi with strong business development experience, who’s fluent in Mandarin, and integrated in the Chinese culture, having lived there a long time. “It’s a nice weight off my shoulders,” laughs Townsend.

Point of difference

Zeffer’s Head Cider Maker Jody Scott (third from left) with Zeffer’s Beijing sales rep and the Nbeer team.

How did Zeffer get to where they are now, from selling their first batch at Matakana Farmers Market just a few years ago?

“Grit,” says Townsend. “We’re still relatively small and have a long way to go. Like any small business we’ve had challenging times and could have given up at several points. But belief in our product, determination and hard work is paying off. Next we want export to grow from 20% to 30% by 2021, and we see China being 20% of our total sales by then. We’re currently conducting a capital raise through Snowball Effect to allow further focus on our Chinese market opportunity.”

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

NEW ZEALAND’S LARGEST INDEPENDENT CIDER PRODUCER IS ABOUT TO MAKE HUGE INROADS INTO THE CHINESE MARKET.”

FMCG BUSINESS - JULY 2018

31

[ events ]

FINE FOOD NZ HIGHLIGHTS

Celebrity Chef Manu Feildel shared his duck recipes.

F

(L to R) Lyndon Everton, General Manager and Brian Everton, Sales Manager of Cabernet Foods with their Award.

ine Food New Zealand was on in Auckland from 24-26th June and it’s where the industry gets down to business.

With more than 330 exhibitors, 10 interactive feature zones and 200+ new products at the ASB Showgrounds, visitors enjoyed networking opportunities, seminars, innovations, trade deals and cooking demonstrations, including Manu Feildel’s duck recipes.

It’s the country’s largest trade event for the foodservice, food retail and hospitality industries and it only rolls around once every two years. In its fifth edition, the show attracted both national and international exhibitors and more than 8,000 delegates over the course of three days. Delegates enjoyed the Silver Chef Seminar Series, the Mojo Café Hub, the Baking Industry Association of New Zealand’s competition, and discovered plenty of new products, packaging and equipment on offer from a broad cross section of exhibitors.

Top Shelf, the industry’s biggest trade liquor event, and the Networking Lounge provided ample opportunity to do business and make new contacts over a drink or two.

32

FMCG BUSINESS - JULY 2018

Innovation Awards The Fine Food New Zealand Innovation Awards were also celebrated at the same time, with the top honour going to Kaitahi™ for Kaitahi™ Frozen Superfood Smoothy Drops. The 2018 James & Wells Champion of Innovation Award was also the winner of the foodservice category, one of three ‘Most Innovative’ awards in retail, foodservice and hospitality.

The winner in the retail category, sponsored by FMCG Business, was Cabernet Foods’ Everton Dry aged Beef and iMonitor came out on top in the hospitality category with its wireless temperature monitoring technology.

Lorraine Smith, Event Manager of Fine Food New Zealand says competition for the Innovation Awards was exceptionally strong. “The judges certainly had their work cut out for them, with high quality entries from diverse companies in every corner of New Zealand and internationally. Reflecting changing attitudes to food and hospitality, many of them are innovators in eco-conscious and healthy living – but what every entrant has shown is the high calibre of food production, food service and hospitality we enjoy in this country.”

Kaitahi™ Frozen Superfood Smoothy Drops represents an advance on the frozen smoothie blends currently on the market.

Delivered in the form of frozen drops, trapping in the flavour and goodness, it’s a refreshingly different product that delivers delicious and nutritious functional food in a highly convenient way. The drops include traditional Maori ingredients such as kumara, puha and kawakawa, made by ringawera (cooks) who are familiar with the old ways of doing things.

For more information visit www.finefoodnz.co.nz.

Kaitahi won The 2018 James & Wells Champion of Innovation Award.

Events 2018 JULY

OCTOBER

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

6-7 THE CHOCOLATE & COFFEE SHOW The Cloud Auckland, NZ https://chocolatecoffeeshow. co.nz

31 NZ BAKELS SUPREME PIE AWARDS Auckland, NZ http://www.nzbakels.co.nz/ pie_awards.cfm

AUGUST 15-16 C&I EXPO Melbourne Convention & Exhibition Centre Melbourne, Australia https://www.candiexpo.com.au/

17 NZ FOOD AWARDS Powered by Massey University Auckland, NZ www.foodawards.co.nz.

NOVEMBER 7-9 FGC CONFERENCE Brisbane, Australia https://www.nzfgc-conference. com/

SEPTEMBER 18-20 FOODTECH PACKTECH ASB Showgrounds Auckland, New Zealand www.foodtechpacktech.co.nz

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15

Visit the websites and contact the event organisers for further details and updates.

To have your event listed in FMCG Business email: trubanowski@intermedianz.co.nz.

FMCG BUSINESS - JULY 2018

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1 September 2018

NeW ZEALAND RoomS, SkY CITY • 6.30PM - 1AM

[ social sphere ]

Out & About Co-founders Daniel Flynn, Justine Flynn, Jarryd Burns announce that New World, Pak’nSave and Four Square will be the first to stock their crowd-funded Thankyou range.

Collective ‘Chefs At the launch of The (L-R) Michael for Good’ Campaign: Josh Emett, Meredith, Al Brown, Allan.

Peter Gordon, Angus

The team at the opening of the new Farro Fresh store in Mt Eden, Auckland.

SNAP & WIN!

At the opening of New World Fielding: Todd and Nicola Carter (Owner Operators), with their family Renee, Danielle and Amelia Carter.

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 win a selection of Zealong’s entire tea bag collection, the perfect taster for New Zealand grown teas, along with a specially designed cup and plate set to keep you warm this winter! (Value: $87.95)

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

FMCG BUSINESS - JULY 2018

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www.theshout.co.nz July 2018

New Hardware PLUS ORGANIC WINE n AMERICAN BEER n INDUSTRY INSIGHTS NEW ZEALAND’S LARGEST LIQUOR AUDIENCE

Transport yourself to Marlborough!

DOWNLOAD OUR GIESEN GROUP iOS APP Key features include an interactive 3D map of Marlborough’s Wairau Valley, stunning drone footage of our vineyards and tasting notes at your fingertips.

THE NEXT GENERATION OF WINE EXPLORATION

[ editorial ]

Going organic

CONTENTS July 2018 4

Industry news and insights

7 Take your pick…

This month’s must-try classics and new releases 8 The organic way Q&A with Millton Vineyards founder, James Millton, plus organic wine stats from the 2018 OANZ Market Report 10 Organically speaking There’s no better time to opt for one of these organic wines 11 Event pics

The Shout Editor Charlotte Cowan

WHILE JUST a few years ago, ‘going organic’ was seen as something that only hippies and vegans had on their radars, the local and global organic industry is booming.

The 2018 OANZ Market Report, released late last month, shows that the value of the New Zealand organic sector has swelled to $600 million, up 30% since 2015, and that close to 80% of New Zealanders purchase organic products at least fortnightly. And that includes wine.

More than 10% of the country’s wineries now hold organic certification and this number is increasing.

We spoke to James Millton, founder of New Zealand’s first organic and biodynamic wine estate, to learn more about the expansion and future of the Kiwi organic wine industry on pgs 8-9.

For lovers of American-style beer (not the Bud Light kind), Neil Miller takes a look at the increasing popularity of the APA in New Zealand and why Kiwis’ taste buds have changed to accommodate the über-hoppiness of the style. Delve into some stars and hops on pgs 14-15.

And don’t forget to check out this month’s must-try classic and new releases on pg 7.

For more amazing liquor news (and even a few giveaways), make sure you follow us on Instagram and Facebook @theshoutnz and sign up to our fortnightly eNewsletter at www.theshout.co.nz. Salut!

A few social snaps from The World of Wine Festival

14 12 Sweet, sweet wine Tasting notes from Cameron Douglas MS 14 Stars and hops: American beer Neil Miller shares insights into APA in NZ 16 Beer consumers in emerging markets offer a flavourful, flourishing future Category insights from Nielsen US

Editor’s picks The Doctors’ Pinot Noir 2017 Sustainably grown, naturally produced and New Zealand’s first ever low alcohol Pinot Noir, this brand new release from The Doctors’ is just in time for those chilly winter nights. For more must-try classics and new releases this month, head to Take Your Pick on pg 7.

Churton Marlborough Sauvignon Blanc 2017 Since we’re all about organic this month, why not try Churton’s Marlborough Sauvignon Blanc? With amazing crisp flavour and creamy layers of stone fruit on the palate, this savvy is the perfect pairing for a Sunday night Asian spiced slow-cooked pork belly. For more Kiwi organic wines to add to your list, check out pg 10.

The King’s A Sticky End Noble Marlborough Sauvignon Blanc 2017 And for a completely different wine experience, steal a sip of The King’s A Sticky End Noble Marlborough Sauvignon Blanc 2017. Dangerously sweet, serve it chilled with a platter of your favourite blue cheeses. For more sweet wines, take a look at Cameron Douglas’ tasting notes on pgs 12-13.

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

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

FMCG BUSINESS: THE SHOUT - JULY 2018

3

[ news] [ sponsored news ]

Moa’s classic beer range now in cans MOA, ONE of New Zealand’s most successful craft breweries, has announced its classic range of beer will now also be available in cans.

From this month, Moa Classic Original Lager, Station IPA and Dry Hopped Pilsner will be in canned 6-packs, as well as the current bottle format.

Founded in 2003 by Josh Scott, son of renowned winemaker Allan Scott, Moa beer is brewed amongst the world-famous vineyards of Blenheim and is currently number three in the craft beer market (AC Nielsen – Total Supermarkets 13/5/18).

“We know that millennials, which are a large portion of craft beer drinkers, are looking for lifestyle-appropriate packaging and cans deliver,” says Moa’s Strategic Director, Stephen Smith. “Putting our classic beer range into cans allows us to deliver a superior product to our consumers.

“Cans are convenient, lightweight, infinitely recyclable and they prevent UV rays from penetrating packaging.”

Now distributed by mobev, the Moa Classic Original Lager,

Station IPA and Dry Hopped Pilsner 6-pack cans have an RRP of $15.49. For more information on the Moa canned beer range, phone mobev on (0800) 662 456.

[ awards news ]

The Shout NZ announced as a sponsor of NZ Food Awards 2018

THE SHOUT NZ is proud to announce it is the sponsor of the Alcoholic Beverage Category at the 2018 New Zealand Food Awards.

Running for more than 30 years, the awards - in association with Massey University - enable food and beverage operators

FOR MORE INDUSTRY NEWS FOLLOW US ON 4

FMCG BUSINESS: THE SHOUT - JULY 2018

to boost the profile of their business and brand, grow sales and achieve national and international recognition.

The Alcoholic Beverages Award is open to all beverages (beer, wine, spirits, RTDs and mixers) containing more than 0.5% alcohol and winners are eligible for prize packs including business support, product promotion and product development assistance.

Assisting with this year’s judging is Josh Scott, New Zealand’s first Certified Cicerone (beer expert), founder of Moa Brewing Company and winemaker for Allan Scott Wines. Winners will be announced at the gala dinner on October 17 in Auckland.

Former winners of the category include Epic Brewing Company, Villa Maria and Waiwera Global Ltd. For more information on the New Zealand Food Awards, visit www.foodawards.co.nz

CHECK OUT THESHOUT.CO.NZ

[ industry insights ]

Cutting-edge science, research and innovation to lead the wine industry HOW NEW Zealand wine innovates into the future will be a key driver of the newly established New Zealand Winegrowers Research Centre (NZWRC).

To be based in Blenheim, the NZWRC will carry out world-leading scientific research and innovation to benefit New Zealand’s burgeoning wine industry – which is set to reach exports of $2 billion a year by 2020.

Now New Zealand’s fifth largest export good, the Ministry of Business, Innovation and Employment’s Regional Research Institute funding for the NZWRC of up to $12.5 million over the next four years will support the continued growth and profitability of the New Zealand wine industry. The Marlborough District Council and New Zealand Winegrowers are also investing.

The NZWRC team is working on the establishment of the research centre, with building expected next year, which will include a research winery as an important part of the design.

We are also in the process of hiring a Head of Research and Innovation, who will take the lead on our mandate to conduct research focusing on the whole supply chain, from grape to glass.

Although the centre is based in Marlborough, research will be national in focus and with global reach.

Vision: Transforming the New Zealand grape and wine industry through research, innovation and extension Mission: Delivering world-leading research outcomes from grape to glass Our Purpose: Research to support the profitable growth of wine from New Zealand. Research to protect the competitive position of wine from New Zealand.

MJ Loza New Zealand Winegrowers Research Centre CEO

3 November 2018 Founders Park, Nelson 12 noon - 6pm

Relax in sunny Nelson with your friends and family.

Listen to live music while sampling fine NZ Ciders and tasty local artisan fare.

Over 80 Cider Varieties Souvenir Glass Family Friendly Live NZ Music Local Artisan Food Kids Zone +

www.nzciderfestival.com Oct 31st - Nov 4th

Cider New Zealand

& EVENTS

FMCG BUSINESS: THE SHOUT - JULY 2018

5

New Zealand’s

LARGEST liquor audience

www.theshout.co.nz

April 2018

www.theshout.co.n

September 2017

z

June 2018

o.nz

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Introducing

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comes home to Aotearoa

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ADVERTISING SALES MANAGER Sam Wood swood@intermedianz.co.nz

www.theshout.co.nz

[ on shelf ]

TAKE YOUR PICK… This month’s must-try classics and new releases.

Kono Marlborough Sauvignon Blanc

The Doctors’ Pinot Noir 2017

1919 Distilling Gin

The Māori-owned food and beverage business, Kono, has brought its namesake wine back to Aotearoa, after gaining accolades all over the world.

Kono Sauvignon Blanc has garnered numerous gold medals and 90+ point scores from wine shows from San Francisco to Berlin; and has most recently won the prestigious Platinum medal in the Decanter World Wine Awards 2018.

A classic Marlborough Sauvignon with vibrant, fresh flavours and characteristics of fresh cut grass, passionfruit pulp, pink grapefruit and zingy citrus acidity, this is a highly-awarded and yet affordable wine.

Available in restaurants only Contact 0800 864 894 or info@kono.co.nz www.konowines.co.nz

The Doctors’ Pinot Noir 2017 is New Zealand’s first ever lower alcohol Pinot Noir (under 10% ABV) from the pioneers of lower alcohol wines since 2009. Sustainably grown and naturally produced from The Doctors’ Wairau Valley vineyards, this Pinot Noir has full flavour, texture and palate weight. Bright, red summer fruits and lifted floral notes, follow through to a rich palate of dark cherry, dried fruits and a nutty, savoury undertone. All wrapped up in unique premium packaging with new-look label.

RRP $25.00 Contact sales@quenchcollective.co.nz www.quenchcollective.co.nz, www.thedoctors.nz

Named for the year that New Zealanders stood up for their rights and voted down prohibition, 1919 Distilling’s Gin (41% ABV) is locally produced in a custommade still. Created using Otago cherries, Manuka Honey, organic lemons and oranges, plus botanicals including juniper, orris root and cinnamon, 1919 is a classic gin that celebrates old world charm, passion and charisma.

RRP $69.99 Contact 021 024 22067 or info@1919Distilling.com www.1919Distilling.com

The Book of Vermouth

By Shaun Byrne & Gilles Lapalus

Amstel Premium Pilsner

Juno Extra Fine Gin

The Book of Vermouth explores every aspect of this classic aperitif and shows just how much you can do with it on top of a delicious Martini or Negroni. The book includes an introductory section offering a comprehensive guide to the essentials of Vermouth, including the grape varieties, production, botanicals and wormwood and the main section is dedicated to the many different ways to serve, drink and store Vermouth, including cocktail recipes!

RRP $45.00 www.hardiegrant.com/au/books

For almost 150 years, Amstel has brewed a unique beer for people across the globe, and now that premium Pilsner brew is in New Zealand. Born in Amsterdam, the brand is named after the Amstel River, the iconic main artery of the city of Amsterdam.

Brewing is one of the first, and most enduring, industries of Amsterdam, and Amstel is known the world over for its refreshing taste, distinctive golden hue and excellent quality. The 4.6% ABV sessionable premium Pilsner will be a welcome addition to beer chillers and addresses the growing demand for quality premium beers.

RRP $22.99 for 330ml bottle 12-packs www.db.co.nz

Produced in Taranaki, Juno Extra Fine Gin (40% ABV) is an harmonious blend of pure New Zealand mountain water and the finest botanicals and spices.

Named for the goddess of domestic harmony, Juno is a marriage of juniper, coriander and a hint of lemon with other key botanicals including orris root, kaffir lime leaves and cardamom. Juno Extra Fine Gin was awarded a Silver medal at the recent 2018 San Francisco World Spirits Competition.

RRP $88.00 Contact admin@junogin.co.nz www.junogin.co.nz

FMCG BUSINESS: THE SHOUT - JULY 2018

7

[ Q&A ]

THE ORGANIC WAY With 10% of New Zealand wineries now holding organic certification and the recent release of the Organics Aotearoa New Zealand 2018 Market Report, we asked James Millton – founder of New Zealand’s first organic and biodynamic vineyard – why Kiwis should opt for organic.

The Millton Vineyard was established in 1984 and was New Zealand’s first organic and biodynamic wine estate why did you decide to create an organic vineyard?

We really think this desire and direction was an intuitive response from youthful experiences gained from working in famous wine estates overseas. In the early ‘80s, our work was called Integrated Pest Management and this resulted in a high level of observation of plant and animal life. We were enthusiastic with abounding energy and enjoyed growing our own food and working and observing the rhythms of our activities on the land. These directions were confirmed when environmental disasters, such as Chernobyl and Mad Cow Disease, came about and the demand for our products increased exponentially. So that helped justify our chosen path. This never has been a career change pathway, nor the result of an emotional catastrophe.

And why would you ever want to ferment the juice of the fruits from the plants you have grown if systemic chemicals, which kill fungus and yeasts, have been used?

Imagine the taste!

What are your biggest challenges?

Getting the market to accept the difference and the amount of work that goes into a certified product and accepting the resulting price. Thus, being a price maker and not a price taker. [Other challenges include] being taken seriously by trade and media and the need to prove our integrity to third parties of the standards we work with and how we uphold these.

Invariably, climatic conditions may be considered a challenge, however these seasonal events affect all producers. After 35 years of this practice, our plants and soils are very embracing of most of the seasonal climatic pressure and so the supposed challenges regarding not using chemicals to control pests and disease go greatly unfounded.

8

FMCG BUSINESS: THE SHOUT - JULY 2018

Employing sensitive and passionate people to work within our vineyards and winery could [also] be a challenge in this age of scientific learning and political correctness. However, I am amazed at how many people enquire about coming to work here in this wonderland. The challenge is to forget what may have been taught and understand that we are ‘Farming Ease, not fighting DIS-Ease’.

James Millton

Can you taste the difference between an organic and a non-organic wine?

Providing the wine is of good quality then yes, you can taste a difference. For many years I have said no, that there wasn’t any difference in taste but I now know that was being a little too humble. With organic, and more so biodynamic wines, there is a texture and density to the taste and feel of the resulting wines which appeals. The liquid seems to ‘cling’ to the sides of the glass. And compared to non-organic wines, where aroma-enhancing yeasts may have been used, the smell of organic wines may not be as lifted but then the organic wine smells of the place from where it was grown. With organic wine there is a tsense, smell and taste of ‘Somewhereness - Turangawaewae!’

What is organic wine?

Organic wine is made from grapes which have not had any herbicide, insecticide, systemic fungicide or soluble fertiliser used in the vineyards. Instead…

• Mechanical weeding is used to maintain a healthy sward under the vine.

• Flowering plants, such as buckwheat and phacelia, are planted in the vineyards as a polyculture to help attract beneficial parasites and predators who, in turn, feed off any insects which may otherwise chew on the leaves, or suck on the sap of the vines.

• Soft chemicals, such as sulphur and copper, may be used to protect plants from fungal attack, however the quantities allowed per hectare are strictly controlled to international levels.

• Composts from the property, seaweed teas and other plant tonics can be applied to enhance soil microbial activity.

As time goes on and the vines grow older, a natural balance is found in the right conditions, and very little or no additions of tartaric acid or enzymes or animal products are used.

[ Q&A ] Why would you encourage New Zealanders to produce and buy organic wine?

To produce organic wines is extremely rewarding in many ways. It puts you in touch with meaningful people and practitioners.

It allows you to use your true natural talents to work with. It has many benefits in the terms of environmental, social and economic sustainability.

To buy organic wine is to do so because it formulates a category and disciplined consumption of specialised products which are enjoyable. You might surprise yourself with the taste. It might require you to shop in different areas that you may not have already discovered. Because the wines are grown by people who love their land.

They come from New Zealand. There is a unique taste and smell. To encourage New Zealanders to produce more organic wine may be seen as increasing competition, when it is really increasing cooperation and diversity.

Where do you see New Zealand organic wine production heading in the future?

The international markets are really starting to demand certified organic production and we see this being supported by the

new New Zealand Government, as well as Ministry of Primary Industries. The younger generations, the millennials, are becoming very supportive of conservative alcohol consumption and may prefer to pay a little more and drink a little less. We are seeing quite large producers now starting to bring these SKUs into their portfolio and while this may increase the competition it is also raising the awareness.

We made a statement in 2012 that our goal by 2020 was for 20% of New Zealand vineyards to be certified organic. With the massive planting of bulk white varieties in several New Zealand regions, this goal

might now be hard to achieve. So we would rephrase that now ‘By 2020, 20% of the New Zealand wineries will be certified organic’.

That’s pure physical wineries, not brands.

And you just need to look at some of the high profile wine estates in this country and find they are either already certified or moving quickly in this direction. Why? Is it demand or supply or just simply good taste?

Because as it has been said, ‘Before a wine can be great it must first be true’.

Millton Vineyards is the oldest biodynamic wine estate in the Southern Hemisphere and one the 10 oldest biodynamic wine estates in the world.

A vineyard must adhere to their certifier’s organic production standards for three full years before becoming certified organic. The standards stipulate that only natural and biologically sourced inputs can be used in the growing and winemaking process.

There is an annual in-person audit for all organic producers. Currently, four certifying agencies carry out certification in New Zealand: BioGro, AsureQuality, Demeter and Organic Farm New Zealand.

The Ministry of Primary Industries is currently in the process of consultation to make organic standards and certification a matter of law. The regulations are likely to bring New Zealand in line with international best practice, in order to ensure both maximum integrity in the domestic organic market, and strong market access overseas for New Zealand organic producers.

- Rebecca Reider, Coordinator, Organic Winegrowers New Zealand

The NZ organic wine industry by numbers

72 out of 677 New Zealand wineries are certified organic Out of the

67

wines selected for the Fine Wines of New Zealand 2018 list,

29.7%

of the wines were certified organic

As of 2017, of grapevine area in New Zealand was certified organic

4.6%

Curated lists of top New Zealand wines routinely feature

30% or more

organic content

Smaller regions with a greater focus on artisanal production have higher percentages of organic vineyard area - Central Otago (16.7%), Nelson (8.9%),

North Canterbury (7.9%) and Wairarapa (7.4%)

Organic wine exports are up 13% to

$46.5m

Statistics taken from the 2018 OANZ Market Report. For the full report, visit www.oanz.org FMCG BUSINESS: THE SHOUT - JULY 2018

9

[ wine ]

ORGANICALLY SPEAKING There’s no better time than now to try an organic drop – here are a few of our favourites.

Churton Marlborough Sauvignon Blanc 2017 Certified organic and grown under biodynamic vineyard management from the Churton hillside vineyard, this sophisticated Sauvignon Blanc offers precision and minerality.

The Churton Sauvignon Blanc combines aromas of yellow flowers and white peaches on the nose. The textured palate is intense with creamy layers of stone fruit. It is a wine that reflects its organic origins with beautifully balanced fruit.

13% ABV RRP $27.00 Contact Jack Weaver: jack@churton-wines. co.nz or 021 083 04764 www.churton-wines. co.nz Millton Gisborne Les Trois Enfants NV A co-fermentation between Riesling, Gewürztraminer and Muscat a Petit Grains. Picked together and then fermented together in stainless steel tanks and larger format oak barrels, they weave a delightfully aromatic wine, intriguing reflected colour and a long, broad, lingering flavour.

14% ABV RRP$24.00 www.millton.co.nz The Darling Marlborough Sauvignon Blanc 2017 Made from grapes sourced from two organic vineyards in the Wairau Valley of Marlborough and Certified Organic by BioGro New Zealand, The Darling Sauvignon Blanc is classic, yet complex. With an intense aroma with notes of citrus and tropical fruits, the wild 10

FMCG BUSINESS: THE SHOUT - JULY 2018

fermentation in barrels adds weight and texture to the wine.

13.5% ABV RRP $23.00 www.thedarlingwines.com Terrace Edge Liquid Geography Riesling 2017 A rich, medium style, the complex aroma in this BioGro Certified Organic Riesling shows nectarine, mandarin and lemon/lime zest characters with subtle spicy nuances.

The palate delivers excellent power and concentration, with ripe citrus and tropical fruit along with honey and musky botrytis.

13.5% ABV RRP $19.50 www.terracedge.co.nz Clos Henri Petit Clos Marlborough Sauvignon Blanc 2017 French for ‘small enclosed vineyard’, Petit Clos wines from Clos Henri come from younger vines and a mixture of soil types. This Sauvignon Blanc has a welcoming nose with a zesty and citrusy character (lime and lemon) along with some herbal and minty notes.

Fresh, well-balanced and round on the palate offering a silky mouthfeel dominated by stone fruits with a soft lilac and minty touch.

13% ABV RRP $20.00 www.closhenri.com Hanz Herzog Spirit of Marlborough Merlot Cabernet 2013 Sumptuous, sophisticated and sexy, this classic Bordeaux-style gem boasts crème de cassis, elderberries

and dark chocolate, with a distinguished cedar scent. Cellar aged for more than five years, with the ability to mature for many years to come, this one is made to last forever.

14.2% ABV RRP $69.00 www.herzog.co.nz Greystone Waipara Valley Riesling 2017 The 2017 Riesling is the first official organic wine to come from the Greystone vineyard since starting the conversion to organic viticulture in 2014.

It’s expressive on the nose with lime, lemon curd and jasmine flower. The palate carries a long thread of complex fruits including mandarin, mango and lime zest. Balanced with natural sweetness and acidity, this wine will age beautifully or can be enjoyed immediately.

12% ABV RRP $27.00 www.greystonewines. co.nz Pacific Potion Hawke’s Bay Organic Sauvignon Blanc 2017 100% Sauvignon Blanc, Pacific Potion is organically farmed and vinified with minimal intervention.

Passionfruit, peach, floral and vanilla aromas are obvious on the nose with a rich texture in the mouth. On the palate, lime and grapefruit flavours predominate initially, followed by honeysuckle and then a honeydew melon and peachy finish with a hint of spiciness.

11.6% ABV RRP $25.00 www.greatlittlevineyards. com

[ event pics ] The World of Wine Festival took place in the main foyer of Auckland’s AUT City Campus

What: The World of Wine Festival Where: AUT’s Auckland City Campus When: 12-13 May 2018 With more than 140 wines from 14 countries, the largest ever showcase of international wines in New Zealand took place at The World of Wine Festival at AUT’s Auckland City Campus in May. With wine tastings, masterclasses from global wine experts and sensory workshops, the inaugural event was a sell-out.

Wine lovers enjoy the wines of Au Bon Climat, a leading winery from Santa Barbara County in California

Martin Cahnbley from Planet Wine pours some Spanish reds Connal Finlay DWS hosts his master class on the wines of New York State

FMCG BUSINESS: THE SHOUT - JULY 2018

11

[ tasting notes ]

Sweet, sweet wine 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 as 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 Mekong Baby, Nanam Republic and Michelin Starred New York establishment The Musket Room.

12

The human palate can detect sugar in wine from around three grams per litre and upwards. Three grams does not make a wine sweet, in fact it will still be dry. A wine with up to seven grams can also be considered dry and in some places and it can be as high as 15 grams and still be labelled or considered dry. A dry wine is considered ‘dry’ if the wine causes the palate to dry out after swallowing.

How high the alcohol by volume is will affect this outcome as well.

The structure of wine and how acidity plays a role in balance can often lead the taster into thinking a wine is dry when, in fact, it is not. Some German wines are adept at teasing the palate in this way. New Zealand Riesling can do the same.

The threshold for what defines a sweet wine is debateable. Suffice to say that if you taste a wine and describe it as sweet, it is. However, one person’s measure or scale of sweetness will be different from the next.

An actual sweet wine will carry enough information on the label, and the palate, to

FMCG BUSINESS: THE SHOUT - JULY 2018

guide the taster in how sweet the wine will be. Medium-dry, medium and medium-sweet are good indicators; ‘Noble’, ‘Botrytised’, ‘Aszu’, ‘Kabinett’ and ‘Spatlese’ are definitive terms for sweet wine. Flavours of honey, beeswax, marmalade and even apricot juice can often be part of an actual sweet wine flavour profile.

Dessert wines are a category of sweet wine.

They should not to be confused with wines that are very fruity to the taste. Some sweet wines can have both attributes. Your palate won’t lie, so there’s no rocket science to consider.

Sweet wines can be fantastic with starters that contain natural sweetness or sugar, such as Thai food or many Pacific Island dishes. Sweet wines that have very high acidity, making them finish dry, make excellent aperitifs. Dessert wines with noticeable concentration of sugar are best with cheese or dessert courses, but not always. A hot blue cheese souffle entrée is excellent with a sweet wine at the beginning of a meal or at the end. You decide!

[ tasting notes ]

1

3

2

4

GIESEN ESTATE RIESLING 2017 Fantastic bouquet of Riesling with crisp green and red apple, freshly squeezed citrus juices, blossoms and wet stone mineral notes.

The lower alcohol highlights some sweetness and the acid line adds a razor sharp texture through the palate. Flavours of green apple and honeysuckle emerge contrasted by a gentle sweetness. Drink now and through 2028.

Points 93 RRP $15.99 Distributor: Giesen Group Phone: (03) 344 6270 www.giesenwines.co.nz THE KING’S A STICKY END NOBLE MARLBOROUGH SAUVIGNON BLANC 2017 Fragrant, fruity and appealing bouquet with honeycomb lacquered stone fruits, sweet bell-pepper and tropical fruit aromas. Creamy texture with a lusciously sweet core; flavours of pineapple, mango, lemon and sweet grapefruit. A layer of sweet herb returns. High acidity underpins the balance on the palate. Lengthy and very enjoyable finish. Drink now and through 2024.

Points 92 RRP $34.99 Distributor: Lion Phone: (09) 522 9684 www.marisco.co.nz

LOVEBLOCK MARLBOROUGH SWEET MOSCATO 2014 Fragrant, floral, fruity and very appealing bouquet. Blossoms, spun sugar, citrus and orange peel aromas. Sweet as it hits the palate, but immediately contrasted by acidity, texture and flavour.

Flavours from the nose and palate persist with some warmth and freshness adding to the length and finish. Drink now and through 2024.

Points 91 RRP $26.99 Distributor: Hancocks Wine, Spirit and Beer Merchants Phone: (09) 365 1471 www.loveblockwine.com THE NED NOBLE MARLBOROUGH SAUVIGNON BLANC 2017 Great bouquet of honey, soft sweet herb, tropical fruits of pineapple and mango then ripe yellow stone fruits. Quite sweet with contrasting acidity - shows off a citrus sweet lemon layer. Flavours from the bouquet return dovetailing into a lengthy lush finish. Drink now and through 2022.

Points 90 RRP $24.99 Distributor: Lion Phone: (09) 522 9684 www.marisco.co.nz Wines are scored out of 100 points and are listed in no particular order. Numbers are not indicative of a ranking.

FMCG BUSINESS: THE SHOUT - JULY 2018

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STARS AND HOPS: AMERICAN BEER Beer writer Neil Miller takes a look at the real craft beer scene in the USA and the dramatic impact its success is having on New Zealand brewers.

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

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THE BIGGEST selling beer in America in 2017 was overwhelmingly Bud Light, followed by Coors Light, Miller Lite and Budweiser. “Thin, watery, bland, and often full of rice” is how many New Zealand drinkers have traditionally viewed these globally successful brands. Digging deeper though, it is clear that the US craft beer industry is the most innovative and creative in the world. It is the benchmark that other nations’ brewers aspire to, and New Zealand is certainly at the front of that pack.

New Zealand imports comparatively little American beer beyond the mainstream staples, with many of the best US craft beers which do arrive heading directly to specialist bottle stores or bars because of price. I once spent $45 for a single bottle of American beer at the supermarket, though, admittedly, it was a rather large bottle of superb strong ale.

However, New Zealand brewers have embraced American-style beers as evidenced by both sales numbers and the number of awards in recent years. Though it is tough to generalise, Americanstyle beers tend to use punchy, fruity US hops

FMCG BUSINESS: THE SHOUT - JULY 2018

(and lots of them), and are often stronger in both bitterness and alcohol.

The most popular style is American Pale Ale (APA), though the beers are often labelled as India Pale Ale (IPA) as that is a description that consumers are more familiar with. IPA is also the style which APAs evolved from. It is the contents of the bottle, particularly the use of US hops, which really matters.

My first American Pale Ale was the classic Sierra Nevada Pale Ale from California. It tasted like nothing I had tried at the time (admittedly it was the ‘90s) but, in hindsight, it had travelled a long way in not ideal storage conditions. This was brought home by a sip of the same beer at my first baseball game (San Francisco Giants against Saint Louis Cardinals) where it was so fresh, fruity, and put the beer served at Kiwi sporting events to absolute shame.

The first New Zealand APA I tried was Emerson’s American Pale Ale and, frankly, I was blown away by the bold grapefruit notes (a trademark of US hops) and the huge level of quenching bitterness. It was off the scale. Sadly, it was ahead of its time and was dropped from the range due to lack of demand. It

[ beer feature ] Richard Emerson

did reappear a few years ago as a limited release and I was lucky to sup a pint with the legendary brewer Richard Emerson. The beer was… how can I put this delicately… nice enough, but not the hop bomb of my memories.

I asked Emerson why he changed the recipe and his answer was insightful. Paraphrasing, he told me: “The recipe is exactly the same in every regard.

What have changed are New Zealanders’ taste buds.

They now want and expect more hops”. He was dead right.

There can be no better illustration than the story of the Epic Brewing Company, which basically paved the way for American-style beers in this country.

Founder and Head Brewer, Luke Nicholas, was using US hops way before they were cool. His focus on American hops was occasionally controversial, with some rivals even inferring he was unpatriotic for not using local varieties.

The critical breakthrough beer for American-style beers in New Zealand was undoubtedly Epic Pale Ale which, to this day, remains their best seller. At the time, it was considered too hoppy and bitter by many customers and Luke toned down the initial recipe.

That quickly changed as Kiwi drinkers developed a thirst for the big, juicy, punchy American hops such as Citra, Simcoe and Amarillo. Instead of complaining the beer was too hoppy, many customers said they wanted Luke to ‘add more hops’, a phrase which became his unofficial slogan.

Epic then brewed the stronger Epic Mayhem APA, then the even stronger Epic Armageddon IPA (the most awarded Pale Ale in New Zealand), followed by the enormous Epic Hop Zombie IPA. Since then, Epic has dabbled in beers showcasing new and often experimental US hops.

Flavours, aromas and bitterness once considered extreme have become the market expectation. This is evidenced by the major breweries introducing American Pale Ales for the first time, including Monteith’s APA, Mac’s Interstate APA, Mac’s Green Beret (one of my favourite go-to beers), and

Boundary Road 18th Amendment APA. While often at the lower end of the intensity scale compared to the craft brews listed below, they can be fine beers in their own right, and an introduction to the joy of American hops and extra bitterness.

American Pale Ales were invented when US brewers took the traditional, balanced British IPA style (think marmalade, a little caramel, gentle bitterness) and then turned the dial up to 11. They added more American hops which have a more assertive character, more bitterness and often more alcohol.

It soon became a distinct style, which is hugely popular in New Zealand.

At the head of the class is Epic Armageddon but there are a growing Epic Hop Zombie IPA number of contenders. These include Birkenhead Brewing Company Bunker APA, Bonehead Hoptron APA, Tuatara Tomahawk, Sprig & Fern APA, Eagle Brewing Big Yank American IPA, Deep Creek Redwood APA, and Black Dog Dog Father APA. One brewery which has definitely embraced the American trend is Behemoth Brewery, which produces the popular Behemoth Murica APA - a beer bursting with grapefruit, pine, orange and grass. It also makes the most controversial beer in recent New Zealand beer history in the form of Behemoth Dump the Trump APA. The label features a cartoon monster in an orange wig and some disparaging comments about the 45th President of the United States on the side.

Dump the Trump was intended as a one-off protest beer during the election but has returned. It has received a warm reception in Aotearoa, mainly because it is funny, irreverent, and objectively a very good APA. However, Trump supporters in the US were not amused and deluged the Behemoth social media platforms with critical comments, even though none of them would have tasted the actual beer. The story got international media attention so I guess the winner was Behemoth Brewery.

There is a newish style of cloudy, sometimes soupy, APA which was created on the East Coast of the US. Most of the beers above were inspired by the West Coast where the hops grow. A prominent local example would be Deep Creek Lupulin Effect New England IPA. Be sure to pour into a glass to enjoy the full visual effect. Truly America the Deep Creek Redwood APA beautiful!

Sprig & Fern APA

Behemoth Murica APA

AMERICAN-STYLE BEERS TEND TO USE PUNCHY, FRUITY US HOPS (AND LOTS OF THEM), AND ARE OFTEN STRONGER IN BOTH BITTERNESS AND ALCOHOL.”

FMCG BUSINESS: THE SHOUT - JULY 2018

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BEER CONSUMERS IN EMERGING MARKETS OFFER A FLAVOURFUL, FLOURISHING FUTURE Nielsen US explores the growth of unexpected beer markets.

BREAKING INTO opportunities in emerging markets can generate tremendous growth, but staying ahead of sales trends in FMCG in these countries isn’t easy. Keeping up with macroeconomic trends, identifying categories that are showing a surge and anticipating consumer needs are just a few ways to maximise your brand’s global growth potential.

One FMCG category that is seeing significant growth, and is indicative of shifting spending in these markets, is beer.

So what can beer tell us about emerging markets? As the most widely consumed alcoholic beverage around the world, beer can be a positive indicator for growth in these markets. Increasing consumption and changing tastes can signal that consumers 16

FMCG BUSINESS: THE SHOUT - JULY 2018

are beginning to care more about—and spend more on—non-essentials, and beer sales are telling us that there are

opportunities worth exploring in countries like Argentina, Vietnam and Ghana, among others.

[ category insights ] these categories, rural regions are the biggest growth opportunity—in many cases two to three times faster than the total category.

Africa is one of the fastest growing beer markets in the world and Ghana is seeing some of the strongest growth. Lagers have the largest share of consumers’ baskets, but growth is lagging behind the category. Older-style beers such as malt liquors and pilsners are also declining.

So, what are Ghanaians cracking open? Fruitier, flavoured beer categories such as shandies and beer-like drinks grew 51% and 21% in value sales between 2016 and 2017, respectively. As in other markets, these flavours appeal to those who may not like a traditional beer taste.

Ghanaians are upgrading their beer, which could be the first sign of premiumisation in the category. To date, though multinational companies have driven share, with a few notable exceptions, there is a huge opportunity for local players to capture rural growth, but also develop beers that appeal to local tastes.

Emerging markets will remain important investments, even as the world’s developed economies take serious steps toward recovery.

These markets are becoming increasingly competitive, and still have their challenges, like distribution channels, refrigeration and sin taxes. To win, companies must evolve their strategies and tailor them for each country, if not city. This requires an investment in deeply understanding consumers’ needs, desires and attitudes, but it is an investment that stands to yield significant returns if done correctly.

For a closer look at which cities are prime for beer growth and some developed market trends that are set to go global, visit www.nielsen.com

Upcapping a new of beer’s buoyant countries Though the Brazilian economy has suffered in recent years, there are significant signs that the worst is over. During the economic downturn, Brazilians adjusted their habits to reduce their consumption. For example, instead of going out, they turned their homes into gathering places, and sales data tells us that beer drinkers have been seeking better products. Even during the height of the economic crisis, 20152016, the volume of super premium beers grew by 30% and premium beers by 7%.

Brands that have Brazilians willing to spend more on beer are delighting them with new ingredients, flavors and packaging. They are also laser focused on delivering superior experiences.

Across the Atlantic Ocean, and on the other end of the economic spectrum, is Ghana. At the end of 2017’s third quarter, Ghana’s total FMCG growth (+14.0%) was almost twice as high as the next leading African market, South Africa (+7.8%). Strong performances in food and beverages buoyed the market. These categories have done well in smaller formats and independent channels such as table tops and open markets. Smaller manufacturers have also stepped up to meet the needs of consumers, achieving growth ahead of the top five players.

A deep dive into the beverage category shows sales of beer, spirits, coffee and soda are all on the rise. This demonstrates that consumers are interested in spending a little more on everyday luxuries. Within FMCG BUSINESS: THE SHOUT - JULY 2018

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