FMCG JULY 2020 by The Intermedia Group

fmcgbusiness.co.nz

L E A D I N G

I N D U S T R Y

N E W S

JULY 2020 – Volume 7 – No 6

PLUS! BABY CARE n WINTER WELLNESS n WHAT’S HOT n BISCUITS & CRACKERS NEW ZEALAND’S LARGEST FMCG AUDIENCE

24-25

MARCH 2021 Melbourne Convention & Exhibition Centre C&I Expo brings retailers and suppliers together over two big days of business. The retailer audience consists of owners and operators of convenience stores, service stations, independent supermarkets, corner stores, newsagents, mini marts and foodservice stores that have a convenience offer. Suppliers and wholesalers are also more than welcome to exhibit and attend. Visitors experience the latest in convenience products, services and merchandising.

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contents JULY 2020

UP FRONT 6

EDITOR’S NOTE

INDUSTRY NEWS

SPECIAL FEATURES 11 WINTER WELLNESS What’s trending in vitamins, supplements, and cold and flu relief

14 BABY CARE 20 BISCUITS & CRACKERS Category insights

REGULARS 10 BEST IN SEASON Fresh produce update 19 COVER STORY Supporting the Bowel Cancer NZ charity 22 IN STORE A simple swap to recycled paperbags 23 WHAT’S HOT New products in store

GOOD BUSINESS

24 INDUSTRY NEWS AND INSIGHTS 25 PROFILE Who is the Real Food Professor? 26 FMCG BUSINESS PRODUCT OF THE YEAR FINALIST

27 FGC Healthier habits on the horizon? 28 LEGAL ADVICE 29 EXPORT A family’s plans to take custard squares global 30 CONVENIENCE STORES Providing essentials – how stores help their communities 32 PAYMENT TECHNOLOGY 33 PROFILE New app for successful crisis management

EVENTS 34 NEW ZEALAND FOOD AWARDS CELEBRATES YOUR ‘NZ FOOD HEROES’ 36 EVENTS NEWS 37 OUT & ABOUT Our people at work and events around the country

DRINKS 38 100% CERTIFIED RENEWABLE ENERGY FOR WINEMAKERS 40 JAMES & WELLS Bursting Prosecco’s Bubble What GI law changes could mean for local producers 41 DRINKS NEWS

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Omega Plus has a full range of Dry Food, Wet Food and Treats available in supermarkets nationwide. The treats range is 100% freeze dried King Salmon – healthy, delicious and guilt free. JULY

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[ editorial ]

EXPERT ADVICE FOR YOUR BUSINESS Did you know that there is an ongoing dispute between Australia and the EU as to the status of the word ‘prosecco’? Free Trade Agreement negotiations between New Zealand and the European Union (EU) have asked for the recognition and protection of a list of EU geographical indications in New Zealand to be considered for wines, spirits, beers and foodstuffs. While the New Zealand government’s public consultation process has now ended, across the Tasman battles are still being fought over such contentious issues. Turn to pg 40 to find out more – with expert advice from the team at James & Wells. We also bring you category insights, Nielsen data, new product launches, innovative sustainability initiatives and helpful tips from respected industry leaders. Dave Hooker, Executive Director of the New Zealand Association of Convenience Stores, joins us as a new contributor in this issue. Dave has worked in the convenience industry for over 35 years both in New Zealand and throughout Asia Pacific. He explains on pg 30 how convenience stores helped their communities during the COVID restrictions this year. On pg 27, FGC Chief Executive Katherine Rich takes a close look at our eating and drinking habits – and she suggests that right now may be an opportune time to re-set the obesity narrative. Find out what’s trending in Winter Wellness, vitamins and supplements, Baby Care products, biscuits, crackers and fresh produce. There’s also an exciting Cottonsoft campaign underway, as seen on our cover. Last but not least, please get in touch with our friendly team if you have news to share – we’d love to hear from you! Happy reading,

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

PUBLISHED BY C&I Media (NZ) Ltd PO Box 109 342 Newmarket, Auckland 1149 MANAGING DIRECTOR Simon Grover COMMERCIAL DIRECTOR Safa de Valois safa@c-store.com.au EDITORIAL DIRECTOR James Wells james@intermedia.com.au HEAD OF CONTENT Tamara Rubanowski trubanowski@intermedianz.co.nz ph: 027 278 4761 NATIONAL SALES MANAGER Vicky Bennett vbennett@intermedianz.co.nz ph: 021 626 115 SALES DIRECTOR Wendy Steele wsteele@intermedianz.co.nz ph: 021 300 473 ART DIRECTOR Leanne Hogbin leanne@intermedia.com.au PRODUCTION MANAGER Jacqui Cooper jacqui@intermedia.com.au PUBLISHING ASSISTANT Eclypse Lee elee@intermedianz.co.nz SUBSCRIPTION ENQUIRIES Eclypse Lee elee@intermedianz.co.nz C&I Media takes its Corporate and Social Responsibilities seriously and is committed to reducing its impact on the environment. We continuously strive to improve our environmental performance and to initiate additional CSR based projects and activities. As part of our company policy we ensure that the products and services used in the manufacture of this magazine are sourced from environmentally responsible suppliers. This magazine is printed on Impress stock from Spicers Paper using FSC-MIX source pulp from responsible sources and other controlled sources. We print using BIO-inks that contain base materials from renewable resources including wood resin (rosin, colophony), vegetable oils, linseed oil and soy bean oil. This magazine is printed by ICG, an ToitŪ enviromark gold certified printer. The wrapping used in the delivery process of this magazine is biodegradable. ISSN 2382-1663

ON THE COVER Cottonsoft have been a proud sponsor and supporter of Bowel Cancer New Zealand for seven years. Find out more on pg 19.

FMCG BUSINESS IS PROUDLY ASSOCIATED WITH

FMCG BUSINESS - JULY 2020

FMCG Business is audited and verified by ABC. DISCLAIMER This publication is published by C&I Media (NZ) Ltd (the “Publisher”). Materials in this publication have been created by a variety of different entities and, to the extent permitted by law, the Publisher accepts no liability for materials created by others. All materials should be considered protected by New Zealand and international intellectual property laws. Unless you are authorised by law or the copyright owner to do so, you may not copy any of the materials. The mention of a product or service, person or company in this publication does not indicate the Publisher’s endorsement. The views expressed in this publication do not necessarily represent the opinion of the Publisher, its agents, company officers or employees. Any use of the information contained in this publication is at the sole risk of the person using that information. The user should make independent enquiries as to the accuracy of the information before relying on that information. All express or implied terms, conditions, warranties, statements, assurances and representations in relation to the Publisher, its publications and its services are expressly excluded. To the extent permitted by law, the Publisher will not be liable for any damages including special, exemplary, punitive or consequential damages (including but not limited to economic loss or loss of profit or revenue or loss of opportunity) or indirect loss or damage of any kind arising in contract, tort or otherwise, even if advised of the possibility of such loss of profits or damages. While we use our best endeavours to ensure accuracy of the materials we create, to the extent permitted by law, the Publisher excludes all liability for loss resulting from any inaccuracies or false or misleading statements that may appear in this publication. Copyright © 2020 - C&I Media (NZ) Ltd

MARKETING SUMMIT Ellerslie Racecourse, Auckland

Save the date TUESDAY 29TH SEPTEMBER 2020 The one-day marketing masterclass for every FMCG professional FOR MORE INFORMATION M: +61 415 404 264 E: bcurtis@intermedia.com.au www.fmcgsummit.co.nz #FMCGmarketingsummit

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[ news ]

‘NEW NORMAL’ AFFECTS THE WAY WE WORK, LIVE AND EAT Changing shopping habits, redefining occupational health and safety and consumer interest in food safety are the major drivers of change across the fresh produce supply chain in the “new normal”, reveals the PMA A-NZ State of the Industry Report 2020. “COVID-19 has driven change at a rapid pace, affecting the way we work, live, eat, move and use technology,” said Darren Keating, CEO at the Produce Marketing Association Australia-New Zealand (PMA A-NZ). During lockdown, consumers' purchasing habits changed, shifting away from the convenience trend that had been gaining momentum in the industry. “Consumers are tending to have one major grocery shop during the week, rather than the 3-4 visits prior to the pandemic. The general public is cooking at home more, experimenting with new fruits and vegetables, and nothing suggests that trend will stop,” Keating said. With widespread concerns about public health, food safety has now become a major focus for consumers. “Consumers want assurances about the origin and integrity of produce, plus evidence that food production, handling and preparation practises meet acceptable hygiene

standards,” Keating said. “The way workplaces operate will change. OH&S requirements are no longer just about physical safety, but also the health-related safety of employees. This will necessitate significant reviews and redesign of facilities, equipment and amenities along the entire fresh produce supply chain.” The full report is available at www.pma-anz.com

FOOD FACTORY OPEN FOR BUSINESS The Trustees of The Food Factory in Stoke, Nelson, a new purpose-built facility to mentor and upskill budding food businesses are delighted to be officially open for business with three tenants already on site. The Food Factory, completed on time and under budget just before lockdown, is the brainchild of Pic Picot of the nearby Pic’s Peanut Butter World. The facility attracted funding from the Provincial Growth Fund and is operated as a Charitable Trust. “We are thrilled that we have been able to attract tenants so soon after moving from Covid Level 3. It’s encouraging that these businesses have optimism for the future and their products in this Covid economic recovery phase,” says Pic Picot, a Trustee of the venture. Other Trustees include local business leaders Julian Raine of Oaklands Milk and Mark A’Court of FreshChoice, Nelson and public

FOR MORE INDUSTRY NEWS FOLLOW US ON 8

FMCG BUSINESS - JULY 2020

Pic Picot at the entrance to The Food Factory

One of the kitchens at The Food Factory

relations and communications consultant Debbie Hannan. The Factory consists of four commercial food-grade kitchens within the building, that also encompasses warehouse and chiller space, staff amenities, and a presentation kitchen to display and wow visitors, customers and other interested parties. As well as supporting each other, tenants of The Food Factory will also have the mentor support of an on-site business manager to help navigate the vagaries of the marketplace “We want to provide a supportive learning environment to enable these small enterprises to grow and set up their own premises and create jobs,” says The Food Factory Manager Brian Olorenshaw. “Nelson/Tasman is a region with bountiful natural resources and creative entrepreneurs. We want to create a great, supportive learning environment to enable small businesses to capture all the region has to offer,” says Picot.

CHECK OUT WWW.FMCGBUSINESS.CO.NZ

[ news ]

MOVERS & SHAKERS Reckitt Benckiser announce new Marketing Director Reckitt Benckiser (RB) has announced Saurabh Jain as their new Marketing Director for Australia and New Zealand. Jain will oversee RB’s ANZ consumer hygiene portfolio, which includes brands Pine O Cleen, Saurabh Jain Harpic, Easy-Off Bam, Mortein, Finish, Vanish, and Air Wick. He joins from the company’s global disinfection portfolio and has also previously held roles at ITC Limited and Amazon. Jain, who has already commenced the role, replaces Arnaud Sudre, who has moved into the company’s global business.

NZBC appoints Public Affairs General Manager The New Zealand Beverage Council is delighted to announce the appointment of Emily Fuller as its new General Manager of Public Affairs. The NZBC represents the non-alcoholic beverage industry in New Zealand including manufacturers, brand owners and suppliers. Fuller will start in her new role on 13 July.

Emily Fuller

Venerdi announces a change in leadership Auckland bread making company Venerdi has announced a change in leadership, with current CEO Tim Grainger moving into a new Business Development role at the company he co-founded in 2002. The new role will allow Grainger to focus on Plant and Machinery improvements, Product developments, and Market development.

Grainger’s successor is current Venerdi Head of People and Culture, Kerry Elliot. Elliott has worked at Venerdi since 2016 and has been instrumental in developing the strong values-based organisational culture, which underpins the performance of the company today, says Grainger. Elliott takes over as Venerdi CEO effective immediately.

Kerry Elliott

Competenz Chairman retires Competenz Trust Board long-serving Chairman Mike Simm announced his retirement from the role at its recent Annual General Meeting. Competenz CEO Fiona Kingsford said Mike’s contribution over the last eight years has been invaluable for the Industry Training Organisation (ITO). “Mike’s passion for youth development, vocational education and our industries has led Competenz to become a highly respected and trusted advisor with our industries and Government. “On a personal note, I have truly valued Mike’s support and mentorship over the past four years and will miss his wisdom and insight.” George Adams will replace Mike as Board Chair. George joined the Competenz Board in April 2018. He has 30 years of experience leading companies in New Zealand, Africa and Europe, which has given him an in-depth appreciation of the benefits of industry training to learners, companies and the country. He is George Adams a strong advocate for the FMCG, forestry, and health and safety sectors.

CONSTRUCTION STARTS ON COUNTDOWN’S NEW DC Palmerston North will soon be home to a brand new, purposebuilt distribution hub on Alderson Road, servicing Countdown’s stores from Gisborne to Wellington. Construction starts on the new state-of-the-art building over the next few weeks. The new distribution centre is expected to open in late 2021, and when fully operational, will be able to move around 450,000 cartons a week through the Countdown, FreshChoice and SuperValue network. It will replace Countdown’s Mako Mako Road distribution centre, and will be approximately 38,000sqm - around three times bigger than the existing site. More than 100 construction workers will be employed on the project. When the distribution centre is complete, Countdown expects to create approximately 50 new roles, bringing its total distribution centre team to around 150 team members. Brett Ashley, Countdown’s General Manager Store Operations and Supply Chain, says more than ever, the last few months have shown the importance of a strong supply chain, and Palmerston North is a critical part of that for Countdown.

“We could never have imagined the responsibility supermarkets have held over the last few months to safely and quickly provide Kiwis with food and essentials. We’ve pushed our supply chain beyond what we ever thought was possible,” says Ashley. “This investment in Palmerston North is a critical part of ensuring we can meet the future needs of our Lower North Island customers, whether that’s on a daily basis with better product availability, preparing for future growth, or making sure we are future-proofed to handle what might be thrown our way.” FMCG BUSINESS - JULY 2020

[ fresh produce ]

BEST IN SEASON July brings the full brassica range into mass supply broccoli, cabbage, cauliflower, Brussels sprouts, kale, Asian vegetables, celery, leeks, silverbeet and spinach. All apple and pear varieties remain abundant and are always a popular consumer choice, as are vitamin C rich kiwifruit and all citrus fruit. Keep these staples highlighted throughout the winter cold and flu season. Make the most of sub-tropical delicacies, persimmons and tamarillos as these gems are only available for a short window.

kale however smaller-leaved kale has a milder flavour and will be more tender. Storage/handling: Broccoli and cauliflower will last out of refrigeration in winter as long as they are kept hydrated. Keep kale refrigerated at all times. Nutrition: Broccoli, cauliflower and kale are all good sources of vitamin C which supports healthy bones, cartilage, teeth, gums and skin. They are also all sources of dietary fibre which aids healthy digestion.

Tamarillos

“NAVEL ORANGES CONTAIN GOOD SOURCES OF VITAMINS C AND B6 TO HELP SUPPORT IMMUNITY.”

Tamarillos come into their peak season during July and August. Due to drought conditions in many regions over summer which continued into autumn, quantity will be reduced from last year. However, fruit is ripe, sweet and full of flavour from Northland’s endless sunshine. What to look for: There are three varieties – red, amber and gold. Choose plump, firm tamarillos with green stalks as this signifies that the fruit is freshly picked. Stalks go black the longer the fruit is off the tree. Storage/handling: Tamarillos will keep refrigerated for two weeks or for one week unrefrigerated. Handle them with care to avoid bruising. Nutrition: Tamarillos are a good source of vitamin A for healthy skin and body tissues. They are also a good source of vitamin C which helps the body absorb iron from food.

Brassicas: Broccoli, cauliflower and kale The brassica group provides more types of vegetables than any other genus. Brassicas are members of the mustard family and this diverse bunch includes plants whose leaves, flowers, stems, and roots are usually cooked and eaten. What to look for: Broccoli is the star of brassicas and they should feel heavy for their size with tight green florets and firm stalks. Cauliflower heads should also be firm and tightly closed with no signs of dark spots or softness. There are multiple varieties of 10

FMCG BUSINESS - JULY 2020

Navel oranges Gisborne produces 85% of our nation’s supply of oranges and tree-ripened, super-sweet and seedless New Zealand Navel oranges are now coming into peak season. They are a consumer favourite as they are easy to peel, part, and are perfect for eating with firm flesh and just the right amount of juice. What to look for: Choose oranges with solid, finely textured skin that feel heavy for their size. Avoid ones with soft or spongy spots. Storage/handling: Unlike other fruit, oranges won’t ripen any further once they are picked. Keep refrigerated where possible to avoid them drying out. Nutrition: Navel oranges contain good sources of vitamins C and B6 to help support immunity and a healthy metabolism. They are also a source of niacin which is essential for energy release.

Join us on

www.unitedfresh.co.nz

WINTER

WELLNESS What’s trending in vitamins, supplements, and cold and flu relief?

With cold weather settling in across the country, shoppers are stocking up on immune-boosting products and remedies for winter ailments. Health by Habit launched their new vitamin and supplement range in New World, PAK’nSAVE and Four Square stores in the North Island just a few weeks before the COVID-19 pandemic gripped New Zealand and we went into lockdown. Since then, Health by Habit have been riding a wave of success as customers are increasingly interested in boosting their health to take better care of themselves in light of post-COVID health and wellbeing concerns. Health by Habit were determined to create affordable vitamin and supplement products that appeal to a younger, more health-conscious demographic without alienating the traditional vitamin user. By targeting millennials, Health by Habit wanted to capture an untapped market demographic who highly value their overall health and wellbeing. They also wanted to focus on education being seen as empowerment; smart as the new cool. Supplements became a go-to purchase for customers as they wanted to stay healthy and safe at home during lockdown. Grocery Food Category Manager at Foodstuffs North Island, Sue Maclaine says: “During the lockdown, our customers were eager to get their hands on Health by Habit supplements. Some weeks the product made up 20% of the category sales, with 80% of customers new to the category. We learned that Vitamin C was the toilet paper of the supplement category; our customers couldn’t get enough of it!” Health by Habit offers customers a product that is designed, developed, and manufactured right here in

New Zealand. Targeting both mid-tier and premium customers, the brand will continue to provide solutions and prevention rather than a cure.

Red Seal. Incredible Inside. After nearly 100 years of supporting Kiwis with their everyday health and wellness, Red Seal is about to relaunch with a new brand campaign. Harking back to Red Seal’s founding belief, the new positioning is simple: “When you put incredible in, you get incredible out,” says Aurelia Moly - Head of Marketing. Moly explains: “The Supplements category is the perfect example of putting incredible in to get incredible out. We’ve all felt the beneficial effect of topping up with vitamins, minerals and herbs. It can make a massive difference to how we feel, our health and wellbeing and how we approach our everyday life.

FMCG BUSINESS - JULY 2020

[ category insights ]

“RED SEAL IS ABOUT TO RELAUNCH WITH A NEW BRAND CAMPAIGN.”

“Red Seal is the number two brand in the vitamin category and offers a wide range of supplements. The star of the show over the last year has been the family friendly and delicious Vitamin C chewable range, growing at over 30%. It comes in a range of exciting flavours including Orange, Lemon & honey, Strawberry and Blackcurrant. During the cooler winter months, Vitamin C is a key growth driver, as it’s a powerful antioxidant that supports the body’s immune defences. “Over the next 12 months, Red Seal has numerous exciting initiatives including strong above the line brand support and on-trend innovation in development. A key central focus will be bringing quality products into the grocery channel that target key health concerns for Kiwis,” says Moly.

and striking on shelf, but more importantly, homecompostable, delivering to the growing consumer demand to reduce plastic. Ceres Organics have been leading the way with home compostable packaging for several years now, and with the relaunch of these two skus, they are also transitioning their complete core functional foods range into this format. While many other ‘compostable’ products on the market can only be composted in commercial facilities, what is so great about these, is that they can breakdown in a typical home compost. Ceres Organics are aiming to convert consumers into keen composters and are busy spreading the composting call. “This new innovation coupled with the move to more environmental packaging is sure to reinvigorate the functional foods category,” says Moltschaniwskyj.

Ethics range – cold and flu relief to get you through this Winter Ceres Organics Ceres Organics are returning to their stomping ground with the upcoming relaunch of two classic organic functional food products; LSA (ground linseed, sunflower & almond) and LSC (ground linseed, sunflower & chia) now with the added benefit of probiotics. They saw the opportunity to drive further growth in the category through leading edge innovation – with the first probiotic enhanced functional food products. “It is the perfect time to get these on shelf, with consumers increasingly proactive about immunity and gut health, particularly amid a COVID-19 environment,” says Head of Marketing, Nicky Moltschaniwskyj. The added probiotic is a plant-based spore-forming bacteria that can withstand stomach acid and reach the intestine where it is most effective. The spore-forming ability also makes them shelf stable. The new packaging is playfully bold 12

FMCG BUSINESS - JULY 2020

“The Ethics range continues to support your winter needs from cold and flu relief, sore throats, chest congestion, blocked nose, headaches and fever. It includes our Ills and Chills to support you naturally day and night,” says David Acott Sales / Key Account Manager at Multichem NZ Ltd. “With easy to swallow tablets and capsules in our adults’ range, throat lozenges, soothing chest rub and saline nasal spray we have you covered this Winter.

[ category insights ] “With a wide quality range to choose from and value for money, they are perfect to drive sales this Winter Season,” says Acott.

For more information contact your Alliance Marketing Territory Manager or Multichem on 09 488 0330.

Source: NIELSEN SCANTRACK Total Supermarkets - MAT to 14/06/2020 Val $ Sales

Val % Chg YA

Health Supplements

124,085,359

7.6%

Vitamins

46,796,201

18.3%

Nutritional Sports Bars

20,571,568

13.7%

Nutritional Supplements

18,602,947

13.3%

Minerals

12,595,284

-3.6%

Other Health Tablets

11,074,986

-13.4%

Herbal Supplements

6,975,537

-6.7%

Fish Liver Oil

5,600,840

-12.5%

Garlic Tablets & Capsules

1,156,825

-3.0%

Homeopathy

358,051

118.7%

Tonic Supplements

346,902

129.9%

Energy Supplements

6,218

26.6%

“THE ETHICS RANGE CONTINUES TO SUPPORT YOUR WINTER NEEDS.” DAVID ACOTT SALES / KEY ACCOUNT MANAGER AT MULTICHEM NZ LTD

FMCG Business produces a monthly snapshot of category news and highlights, based on information from participating clients and Nielsen data available at time of print. To showcase your products in upcoming category reports, please contact trubanowski@intermedianz.co.nz.

Ethics has you covered this winter. High quality cold and flu range at a great price.

Always read the label and use only as directed. If symptoms persist see your healthcare professional. Refer to the product packaging for information on active ingredient names and quantities, dosage, warnings, precautions, contraindication and side effects. Vitamins and minerals are supplementary to and not a replacement for a balanced diet. Multichem NZ Ltd, Auckland. TAPS DA 2004DZ (20/019)

FMCG BUSINESS - JULY 2020

BABY CARE

New launches and market-leading products drive sales in a multi-million-dollar category. With around 145,000 New Zealand babies and toddlers getting their nappies changed about 6000 times before they’re 2.5 years old, nappies are an important weekly choice for parents. Kiwis now have a variety of nappies to choose from including a growing range of sustainable options. “Currently about 8% of Kiwi families use cloth nappies, but we know that demand for cloth and other environmentally responsible options is growing,” says Steve Mills, Countdown’s General Manager Merchandise. “We currently range reusable cloth nappies by Bambino Mio and Little Genie, as well as Little & Brave compostable nappies in select Auckland stores, which can be returned to one of Little & Brave’s nappy drop off bins for them to turn into compost. We see sustainable nappy options continuing to be a growth segment for Kiwis and we want to help make these a more affordable choice as well.”

NEW Tommee Tippee Ultra Lite 100% medical grade Silicone soother Marketing & Sales Director Jock Schoeller told FMCG Business: “Our new soother is designed to stay in Baby’s mouth keeping him or her calmer, soothed and happier for longer. Being 40% lighter than the leading competitor its ultra light design makes it much easier for baby to hold in the mouth for longer. 14

FMCG BUSINESS - JULY 2020

IRI MarketEdge grocery + Pharmacy Data MAT to August 2019 identified “stay in mouth” as a key growth opportunity.” Schoeller explains: “This orthodontic soother is also made from medical grade silicone for a lovely soft touch and feel. There is a firm plastic base under the silicone shield to ensure baby’s safety. The contoured shield is also designed to minimize rubbing and therefore ideal for sensitive skin.

[ category insights ] We have also included a hygiene cover to keep them clean when travelling. “Like all our soothers they are BPA/BPS free and dishwasher safe. They come in a twin pack and are available in 2 stages 0-6m and 6-18m twin packs.” tommeetippee.co.nz

New Zealand’s own Natureland baby food turns 10! Natureland is a big kid now! The locally owned and operated baby food business is celebrating its tenth year in business this month and to mark the occasion the brand is getting a new look. Produced right here in West Auckland by McCallum Industries, Natureland has been feeding our littlest Kiwis delicious baby food for a decade. The team behind the business couldn’t be prouder to manufacture its range, using the finest local ingredients where possible, right here on home soil. While big sister brand, Only Organic has been leading the organic baby food category with her awardwinning goodness since the early 90s’, the 10-year milestone means it’s now Natureland’s time to shine. Marketing Manager Jessica Morel explains: “Our safe and convenient ready to serve pouches are still distinctly Natureland however the addition of

“LIKE ALL OUR SOOTHERS THEY ARE BPA/ BPS FREE AND DISHWASHER SAFE.” JOCK SCHOELLER, MARKETING & SALES DIRECTOR - TOMMEE TIPPEE

Clinically proven to reduce colic and discomfort Our Anti-colic bottle range is clinically proven to reduce colic and discomfort and fussing at night when feeding. The unique anti-colic valve integrated in the teat flexes to allow air into the bottle instead of baby’s tummy for uninterrupted feeding. Trusted by mums since 1984, Philips Avent is the #1 brand recommended by mums worldwide.

“NATURELAND HAS BEEN FEEDING OUR LITTLEST KIWIS DELICIOUS BABY FOOD FOR A DECADE.” some smiley fruit and vegetable friends as part of the brand refresh is sure to put a grin on faces both young and old and make food time a fun time!” “Alongside the makeover, Natureland will be introducing some new, affordable options to its existing range of ready-to-eat fruit purees, savoury meals and desserts,” says Morel. Natureland makes up 10% of total pouch sales and is growing steadily. (IRI data 07.06.2020) For more information on Natureland baby food, get in touch with your local College Hill Territory manager or email sales@cha.co.nz

Philips Avent “Philips Avent is the #1 brand recommended by mums worldwide and is the market leader in the Baby Accessories category with 33%

125ml

260ml

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

330ml

share*,” says Michelle Rice, Brand Manager at Endeavour Consumer Health. Philips Avent provide a wide range of baby feeding products from their clinically proven anti-colic bottles and teats, to their new Ultra Air orthodontic comforters, range of toddler cups for independent toddler drinking or their discrete and comfortable, ultra-thin, ultra-absorbent disposable breast pads for breastfeeding mums. Rice adds: “Philips Avent is the preferred choice of comforters with a massive 76% segment share*. Their range of Ultra Air comforters feature a silky soft teat and lightweight shield with four extra-large airholes to allow skin to breathe minimising skin irritation to provide maximum comfort. They also come in a handy sterilisation carrying case.

“PHILIPS AVENT ANTI-COLIC BOTTLES HAVE BEEN TRUSTED BY MILLIONS OF MUMS WORLDWIDE SINCE 1984.”

The journey to independent drinking “The brand new Ultra Air Night range also now features a very handy ‘glow in the dark’ knob to make it even easier for parents to find the comforter in the dark! And the #1 selling 18m+ comforter is also now available in Ultra Air format with an extra firm teat for toddlers with developing teeth and gums!” Rice explains: “Philips Avent Anti-colic bottles have been trusted by millions of mums worldwide since 1984 and are clinically proven to help reduce colic and discomfort and reduce fussing at night. The unique anti-colic valve on the Anti-colic bottle teat flexes to allow air into the bottle instead of a baby’s tummy for an uninterrupted feeding experience. Philips Avent have 38% share of the bottle and teat segment* with a range of bottles from 125ml to 330ml sizes.” The range of Philips Avent toddler cups are specifically tailored for the various developmental stages of a toddler journey to drinking independently. Rice explains: “Avent has 28% share of the cup segment and is growing ahead of the segment 7.5% MAT*. The entry level Easy Sip cup with its flexible soft silicone spout for easy drinking, and easy grip handles makes it the perfect first choice. The leak-proof My Grippy Soft Spout cup with its bite resistant angled soft spout and easy grip curved bottle shape is an ideal cup progression for toddlers around 9 months who have more developed mouth muscles and pincer grip. For older toddlers around 12 months of age, their

As your child grows, learning to drink independently is a skill they need to develop. Bendy Straw Cup and Grown Up cup are ideal solutions.” * IRI, NZ Grocery Dollar Share, MAT 07/06/2020

WaterWipes Baby Wipes WaterWipes® Baby Wipes were launched eight years ago in New Zealand and are distributed by Marzena Bodycare Australasia. “In this time, we have grown to a $10M Retail Sales brand across New Zealand and Australia and are easily found in almost 4,000 stores across the two countries,” says Marketing Manager Andrea Hawes. “We pride ourselves on making the world’s purest baby wipes, and with this comes a level of responsibility to ensure that we are protecting the planet that the little ones are going to be inheriting. So, with that in mind, we have been working on a truly biodegradable wipe, without compromising our minimal and pure ingredients, and are excited to announce that this will be launched in 2021.” Hawes explains: “While there are some trends that come and go in this category, the continuing trend towards less heavy chemical use in baby products has remained consistent. We have seen a growth of more natural and organic products available in the mainstream market, which is fantastic. Additionally, as more companies are growing in social conscience, we have seen an emergence of more bio-degradable products and are looking forward to being a part of this.

Our range of innovative toddler cups have unique features tailored to each stage in a child’s journey to independent drinking.

9m+ 6m+

9m+

12m+ 18m+

12m+

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

“WATERWIPES ARE SUITABLE FOR SENSITIVE, NEWBORN AND PREMATURE BABY’S SKIN.” “Parents are now more conscious than ever about what they put on their baby’s skin. Because of this forced transparency, there is a rapidly growing shift towards honest and clean products. WaterWipes® was clearly ahead of the game when we launched the ‘world’s purest wipe’ and by reinforcing our position through our story, minimal ingredients and patented technology, we have cemented the brand as a leader in the premium baby wipes category.” Hawes adds: “WaterWipes® are the world’s purest baby wipes made with just two ingredients, in Ireland, under clean room conditions - especially important at times when hygiene is key. “WaterWipes® are proud to announce that they are purer than cotton wool and

water. The water used passes through a 7-step purifying process that uses a series of filters to remove physical and chemical impurities. This purifying process makes the water significantly purer than cooled boiled water. The wipe material undergoes a decontamination process, which combined with the formulation results in a fresh, pure product that is stable for 20 months unopened, or four weeks after opening.” WaterWipes are suitable for sensitive, newborn and premature baby’s skin, and are therefore used in many maternity and neonatal units across Australasia. Distributed by: Marzena Bodycare Australasia Email: waterwipes@marzena.com Ph: 0800 146 279

Source: NIELSEN SCANTRACK Total Supermarkets - MAT to 14/06/2020 Val $ Sales

Val % Chg YA

Baby Products

262,662,493

-0.5%

Nappies

117,877,508

3.8%

Baby Food

79,823,708

-10.8%

Baby Needs

49,665,628

8.0%

Baby Accessories

7,836,194

3.1%

Baby Toiletries

7,459,454

2.7%

FMCG BUSINESS - JULY 2020

[ cover story ]

7 YEARS SUPPORTING BOWEL CANCER NZ CHARITY Cottonsoft Ltd is a New Zealand operated manufacturer, marketer and distributor of paper products, providing leading brands for New Zealand homes since 1986. Since May 2013, Cottonsoft have been a proud sponsor and supporter of Bowel Cancer New Zealand (BCNZ). Cottonsoft have worked with BCNZ every year, creating campaigns to help raise awareness and muchneeded funds. BCNZ General Manager, Rebekah Heal said “we are incredibly grateful for the continued support of our long-term partner, Cottonsoft. Their support along with their collaborative approach to our projects has enabled us to grow from a small grass roots organisation to one that today is able to help the one in eight New Zealanders diagnosed with bowel cancer. Cottonsoft shares our aim of raising awareness of the disease with frank discussion, education and a drive to improve the bowel screening process across the country. They also promote our logo on every pack of Cottonsofts, which helps build awareness of this disease.” As changes in bowel habits are one of the more common symptoms of bowel cancer, there is an obvious link between toilet paper and bowel cancer, but on top of that Cottonsoft's commitment to the campaign also comes from a passion for the cause. Many have a loved one or know of someone that has been affected by bowel cancer. Their country manager Kim Calvert, in particular, has a personal connection losing his father to bowel cancer following a 10-year fight.

“Having witnessed the impact on my family, and knowing the vital difference early detection makes, it’s heart-breaking to think that over 1200 Kiwis a year (more than the road toll) are lost to what is a highly curable disease if caught early,” says Calvert. This year Cottonsoft are especially proud to have been heavily involved in the promotion of the MOVE YOUR BUTT (MYB) fundraising campaign in June, which is bowel cancer awareness month. They were encouraging consumers to join MYB with activity including; • Stickering CottonSofts packs nationwide • Advertising on major media sites and Facebook • Organic and Social media boosted posts BCNZ are very pleased with the outcome of this campaign, with Heal saying: “This year’s MYB campaign was due to launch right in the middle of the COVID-19 lockdown. As a charity we were very concerned by the impact that COVID-19 may have on our fundraising, but with Cottonsoft’s strong support it has meant that we had an increase in participants and are also well ahead of last year’s fundraising.”

“COTTONSOFT HAVE BEEN A PROUD SPONSOR AND SUPPORTER OF BOWEL CANCER NEW ZEALAND.”

FMCG BUSINESS - JULY 2020

BISCUITS & CRACKERS Fresh flavour combinations and new local products stand out on shelf. What’s trending in the popular Biscuits and Crackers categories? Steve Mills, Countdown’s General Manager Merchandise told FMCG Business: “In my house over lockdown, snacks became a wellearned break and our sales show that lots of Kiwis felt the same. Biscuit and cracker sales were significantly up on last year, and we know that it’s an area where people really like to try and test out different options. We’re seeing an exciting move towards a more homemade, rustic look and taste - it could be a very good option for the school bake sale!”

Molly Woppy Quality, true home-style baking for everyday purchase is the main drive for local producers Molly Woppy. Alistair Parker and Hayley Molloy, Directors of Molly Woppy, baked up a plan to provide innovative premium cookies, at an affordable price point, to enjoy every day. They told FMCG Business: “Molly Woppy’s extensive range offers the retailer high margin in return to increase the profit line. Our cookies have strong impact on shelf and are presented in bold, playful packaging to drive consumers and stimulate sales to increase basket spend. All available in shelf ready cartons for ease of merchandising, improved efficiency in shelf real estate and strength in brand grouping.” The range lifts the biscuit and allergen categories by adding value and choices of premium products for the consumer. This includes dairy

free and gluten free options (Coeliac NZ Cross Grain certified) as the demand from consumers for quality product grows. Born in 2002, in Hayley and Alistair’s home, this local business has gained strong brand awareness with consumers nationwide. All products are handmade, using real ingredients, free from anything artificial, and found in your own pantry at home.

“MOLLY WOPPY IS RENOWNED FOR FRESH ONTREND FLAVOUR COMBINATIONS AND OLDFASHIONED CLASSICS.”

FMCG BUSINESS - JULY 2020

[ category insights ]

Molly Woppy is renowned for fresh on-trend flavour combinations and old-fashioned classics, providing quality products at great value for the consumer and retailer. For more information contact Molly Woppy on 09 828 6095 or sales@mollywoppy.co.nz .

Rutherford & Meyer’s new range The recent lockdown has highlighted the need for New Zealanders to support one another. Consumers are demonstrating a strong desire to shop local and support New Zealand business. As a proud New Zealand company based in Wellington for over 20 years, the team at Rutherford & Meyer have made it a priority to champion local ingredients and support New Zealand producers. For their latest line - Love Local New Zealand

artisan oat crackers, Rutherford & Meyer have searched the country for the finest New Zealand ingredients. Starting with Harraways Oat as the base, the range features organic Torere Macadamias from Gisborne, Nelson Fresh pear with Uncle Joe’s hazelnuts from Marlborough and Cates Linseed from Ashburton with Cannock Harvest Pumpkin seeds from the Rangitikei. Complementing their existing range of fruit paste, gourmet wafers, rice wafers and grain crackers, this decadent trio of artisan oat crackers is available in the deli section of Foodstuffs stores from July. “Our latest range of Love Local New Zealand crackers will hit the shelves this month,” says Simon Allen – National Sales Manager. Enquiries to office@randm.co.nz

“THE TEAM AT RUTHERFORD & MEYER HAVE MADE IT A PRIORITY TO CHAMPION NEW ZEALAND INGREDIENTS.”

Source: NIELSEN SCANTRACK Total Supermarkets - MAT w/e 14/06/2020 Val $ Sales

Val % Chg YA

Biscuits Inc Rice Wafer Cakes

468,157,505

4.9%

Cracker Biscuits

140,938,372

6.1%

Enrobed Biscuits

90,852,841

0.7%

60,306,831

7.3%

Plain Sweet Biscuits

56,710,649

11.5%

Rice Crackers

41,286,666

-0.1%

Childrens Biscuits

30,063,855

6.7%

Cream & Jam Biscuits

29,379,929

2.0%

Rice Wafers/Cakes

13,550,216

5.9%

Assorted Biscuits

5,068,145

3.4%

[ in store ]

A SIMPLE SWAP New World and Prolife Foods roll out recycled paper bags nationwide. After a successful trial, New World and Prolife Foods have announced the nationwide rollout of recycled paper bags at Alison’s Pantry departments on the eve of Plastic Free July. The paper bags were trialled at 30 New World and PAK’nSAVE stores across the country in February to gauge customers’ preference on recycled paper bags versus the resealable plastic bags currently available. Following the trial, both packaging options will now be available across all New World stores. “This trial gave us an opportunity to listen to our customers and ensure our packaging solutions are durable, practical and something people actually want to use,” says Kelly McClean, Sustainable Packaging Project Manager, Foodstuffs New Zealand. “We know many New Zealanders will be pleased to have two convenient, sustainable packaging options at our stores’ Alison’s Pantry departments.”

“THE PAPER BAGS ARE MADE OF 70% RECYCLED CONTENT AND CERTIFIED BY THE FOREST STEWARDSHIP COUNCIL”

The trial also revealed customers use the current Alison’s Pantry plastic bags for food storage at home in the pantry or freezer. It is recommended that if customers want to make the simple swap to paper bags, that they decant their bulk foods into a clean, air-tight reusable container or glass jar at home for longterm storage. The paper bags can then be used again for food on-the-go and later recycled. The paper bags are made of 70% recycled content and certified by the Forest Stewardship Council, kerbside recyclable and feature a glassine, paper-based window. “The trial we conducted pre-Covid revealed that New Zealanders like options and convenience,” says Kristina McCalman, Senior Brand Manager for Prolife Foods. “We learned valuable lessons about the recycled paper bags during its trial, such as the need for a glassine 22

FMCG BUSINESS - JULY 2020

window which makes it easy for customers and checkout staff to see what’s inside in the bag, and the need for a recyclable paper sticker to safely seal the bag for ease of transport home. We also learned that New Zealanders like the current reusable plastic bag, which is why it will continue to be available for customers. Yes, it’s a plastic bag, but customers re-use it in their pantry, for tomorrow’s lunch and for freezing. It was important we strike the right balance of practicality, reusability, sustainability and convenience, and offering both bag options strikes the perfect balance.” The rollout of the recycled paper bags at 143 New World stores nationwide is just in time for Plastic Free July. This year’s Plastic Free July campaign has a different theme, to reflect a post-COVID world, but still rooted in sustainability. The theme, “Simple Swaps,” is about showing Aotearoa the simple swaps at their fingertips that they can make to live more sustainably. Swapping to a recycled paper bag at Alison’s Pantry is… a simple swap.

Bringing Summer Vibes To The Winter Chiller Ohhhh Remedy has made a newbie! Mango to the max with a pinch of passionfruit and no sugar, naturally. Remedy Kombucha Mango Passion 330mL and 750mL will be available soon at your local supermarkets across NZ! Contact Deva Dhar +64 21 245 2363 deva.dhar@remedydrinks.com www.remedydrinks.com

HNZ Honey Infusionz™ Our HNZ Infusionz™ contain 100% natural powderised lemon and blackcurrant from New Zealand and organic cacao powder from Peru. When coupled with our Wild Flora Honey, our Honey Infusionz™ can be used as a spread, a sweetener in drinks, drizzled on ice cream or eaten straight from the pot. Info@sellingsolutions.co.nz

New Tasti Fruit & Vege Wholefood Balls Our NEW Fruit & Vege Wholefood balls is the first apple-based product of its kind in New Zealand and signals ‘the next generation of wholefood balls in Australasia’. Made with real apple and only five other natural ingredients, the innovative snack combines natural fruit flavours with a hint of vege, delivering a unique taste and texture in a convenient bite-sized wholefood ball. Contact our Customer Services Team, orders@tasti.co.nz

Heartland’s New Tasty Breakfast Pack The perfect combination of streaky bacon and tasty pork sausages will have your customers coming back for more of the new Heartland NZ Fresh Foods Breakfast Pack. Made from 100% NZ pork, in a convenient combo pack, it’s the ideal way to put a hearty breakfast on the table in minutes. Find out more online at heartlandfresh.co.nz and on Facebook and Instagram: @heartlandnzfreshfoods

New Deliciously Indulgent Spreads from Chantal Organics Packed with plant-based protein and goodness only nature can provide, these superfood spreads come in two flavours; Salted Caramel Peanut Butter & Cinnamon Spiced Almond Butter with Chia and Hemp. They are organic, paleo and vegan friendly! Adaptogenic maca and creamy cashews make the Salted Caramel Peanut Butter an unforgettable experience. While Omega-3’s from the superseeds in the Cinnamon Spiced Almond Butter make it a healthy choice at any time of day. Chantalorganics.co.nz Ph: 0800 254 766 FMCG BUSINESS - JULY 2020

[ good business ]

NZ’S FIRST 100% ELECTRIC REFRIGERATED LOGISTICS TRUCK Foodstuffs and the Energy Efficiency and Conservation Authority (EECA) have partnered up to build New Zealand’s first electric powered refrigerated truck. From the tailgate to the engine and the fridge-freezer unit that sits on top, everything in and on the vehicle is powered by one of the cleanest fuels on the planet. The ‘almost silent’ electric refrigerated truck, which has no tailpipe emissions, is the latest of several projects to see Foodstuffs and EECA collaborate in the drive towards a carbon neutral New Zealand by 2050. “This really is a huge feat of Kiwi ingenuity,” says Mike Sammons, Head of Sustainability for Foodstuffs New Zealand. “We couldn’t purchase a fully electric refrigerated truck, because it didn’t exist, so we had the idea to custom build one,” he added. Foodstuffs made a successful application to the Low Emission Vehicles Contestable Fund for co-funding support. “We could immediately see the potential,” says EECA Transport Portfolio Manager Richard Briggs. “Heavy vehicles make up less than five percent of the national fleet, but are responsible for 29% of land transport emissions, so decarbonising the heavy fleet as much as possible will have a huge, positive impact.” EECA had previously co-funded Foodstuffs to deliver 61 fast charge stations, 28 electric delivery vans and two ambient trucks. “Foodstuffs has developed a great track record in this space, proving the viability of electrification,” added Briggs. With EECA’s backing, Foodstuffs pulled together a brains trust of some of the country’s brightest and best transport, electrical and refrigeration engineers to convert the standard Isuzu FVY, 24 tonne, 6-wheel diesel truck to be 100% electric powered. The electric truck will operate from the Foodstuffs Distribution Centre in Grenada Wellington under the stewardship of Foodstuffs North Island Transport. Blair Inglis, Fleet and Safety Manager was instrumental in driving the project forward. “We knew from the start building a fully electric EV truck would be a challenge and we had our fair share of them along the way, including COVID-19, but we always knew if we could pull it off, this innovation could set the direction for the future of commercial transport in New Zealand and that’s very exciting,” said Inglis. After extensive testing and driver training, the electric truck recently set out on its first official delivery run to New World Miramar, a 24

FMCG BUSINESS - JULY 2020

“THIS INNOVATION COULD SET THE DIRECTION FOR THE FUTURE OF COMMERCIAL TRANSPORT IN NEW ZEALAND.” 60 km round trip. With a range of between 150 and 200 km and capable of transporting 14 pallets of product at temperatures as low as minus 15 degrees centigrade, the truck completed its inaugural journey with ease. Bagish Bansal, Driver for Foodstuffs North Island Transport team was the driver the electric truck its first official run. “I really liked it,” says Bagish, “the ride was smooth, it was really quiet in the cab and it’s great to know that you’re helping the environment while doing your job, that feels really good. I really hope this is the shape of things to come for my occupation,” he added. With carbon emissions from transport currently at 18% in New Zealand, Mike Sammons is optimistic this new innovation will have a role to play in transport carbon reduction. “We’re 100% committed to playing our part in creating more sustainable transport solutions, building a fully electric refrigeration truck is a massive leap towards a carbon free future for New Zealand,” Sammons concluded.

[ good business ]

BROTHER AND PAMS SHINE AT INTERNATIONAL AWARDS Even amid COVID-19 uncertainty, the Vertex International Design Awards carried on judging, with Brother Design’s work for Foodstuffs’ own label brand Pams one of the big winners. Awarded Gold for Pams confectionery, Silver for the redesigned Pams brand and Bronze for Pams Chilled pasta, the Vertex judges were clearly impressed with the own label brand’s new look. As was Marketing Manager Melissa Steffensen of Foodstuffs Own Brand Limited. “Customers love Pams and want to easily find and identify it on shelf,” says Steffensen. “Our new packaging design clearly trumpets the brand, ensuring no matter what aisle of the supermarket you are shopping in, you can easily find Pams.” Brother Design’s packaging for NZ favourite Pams has a long and successful history at award shows, including Vertex: the only international show devoted exclusively to packaging design for private brand. “It’s always rewarding to have good work recognised but these wins feel really special,” says Jenny McMillan, Business Development Director at Brother. All of the winning designs were masterminded by Senior Designer

Justine Rankine of Brother. With brand extensions into the more premium and more value-focused tiers above and below it, Brother had been given the critical task of creating a new packaging design system for the core Pams brand. “The design needed to communicate affordability, quality and functionality across a diverse range of products and formats,” says Rankine. “The look we devised aims to communicate quality, building trust and consumer confidence through the use of a consistent brand architecture across all packaging.”

[ profile ]

WHO IS THE REAL FOOD PROFESSOR? The Real Food Professor is an expert team of Melbourne-based food consultants with exceptional global experience and knowledge of the food industry, across all of its forms: fresh, grocery, non-food, and pet. If you’re keen to put a face to the name, Founder and CEO Mark Field is at the helm. He explains: “I started the business to provide a personalised, agile service in an ever-evolving industry. Listening and understanding the needs of today’s consumer is essential for successful growth.” Mark launched the boutique food consultancy business in 2019, backed by 25 years of international experience, a network of best-in-class experts and the conviction that he and his team could create magic for their clients by supporting them to build better brands, products and relationships with retailers and customers alike. Having previously headed up Coles Supermarkets’ Private Label team, Mark has his finger on the pulse with the latest food trends, customer needs and the corporate strategies used by Mark Field the largest and most effective retailers.

Australian consumers recognise the high quality and provenance of New Zealand products and The Real Food Professor is perfectly positioned to support them in achieving commercial growth. They do this by: 1. Amplifying unique customer offerings 2. Clearly defining brand strategy 3. Understanding private label production benefits 4. Offering supply chain guidance 5. Defining customer needs & product positioning 6. Supporting future investment strategy & Private Equity investment According to Glen Murphy, Regional Director, Australia Pacific “Mark provides in-market expertise to New Zealand's exporting businesses through our Beachhead advisory program. Beachhead advisors are private-sector consultants who are carefully selected to ensure they bring valuable expertise in exporting or entrepreneurship.” If your business is looking to grow, call The Real Food Professor today on +61 401 868 880 or email mark@therealfoodprofessor.com.au. FMCG BUSINESS - JULY 2020

[ good business ]

MILK DISPENSERS AND GLASS BOTTLES A HIT WITH SHOPPERS A nationwide plan to put fresh milk dispensers and reusable glass bottles into grocery stores kicked off in June, following calls from shoppers for milk brands to ditch plastic bottles. Lewis Road Creamery launched the initiative after receiving multiple requests from shoppers asking for a return to glass. “The plastic problem really worries our customers,” says Lewis Road Creamery founder and CEO Peter Cullinane. “Two years ago we switched to 100% recycled plastic bottles but we’ve always wanted to do more, so this is another step in the right direction.” The milk dispensers will initially be installed at Farro stores in Auckland before being rolled out nationwide in other premium grocery stores. “We know that refill stations work brilliantly at small farmers markets around the country, and we really want to see that same responsible approach at a more mass market, urban level,” said Cullinane.

With around 23,000 tonnes of plastic milk bottles entering New Zealand’s waste stream annually, Lewis Road says that anything that can be done to reduce this amount of plastic waste is a positive thing. The milk dispensers are supplied by New Zealand business Glass Bottle Milk & Co. Customers buy a one litre screw top glass bottle for filling from the dispenser located in-store. “We are always looking for new ways to offer shoppers more sustainable shopping solutions and, like our friends at Lewis Road, we have received many requests from our customers for milk refill stations like these,” says Farro CEO Bryce Howard. “A trial of the milk dispenser in our Grey Lynn store has been really well received by our customers so we are looking forward to having more dispensers in more stores for more of our customers to access.” The reusable glass 1-litre bottles cost a one-off $4 and each milk refill of Lewis Road Creamery Organic Homogenised milk is $4 per litre.

NEW TASTI FRUIT & VEGE WHOLEFOOD BALLS DUCT O

• R

•F M C

UCT OF THE OD YE PR A

•F M C

DUCT OF TH PRO EY CG M

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PRODUCT OF THE YEAR

FMCG BUSINESS PRODUCT OF THE YEAR Do you have a Hero product that stands out from the crowd? If there’s a tasty tastebud teaser, NPD rockstar, or best seller in your portfolio that deserves to be crowned ‘Product Of The Year’ - we’d love to hear from you! We’ll showcase some of the finalists in upcoming issues and reveal the FMCG Business Product of the Year later in 2020. To find out more on how to enter please email: trubanowski@intermedianz.co.nz

FMCG BUSINESS - JULY 2020

•F

UCT OF THE OD YE PR A

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R• EA

•F

R EA

F TH PRO EY Tasti’s new Fruit & Vege CG M FIN AL IST Wholefood balls range is the first apple-based product of its kind in New Zealand and PRODUCT OF THE YEAR signals ‘the next generation of wholefood balls in Australasia’. Made with real apple and only five other natural ingredients, the innovative snack combines natural fruit flavours with a hint of vege, delivering a unique taste and texture in a convenient bite-sized wholefood ball. The range is gluten free, vegan and has no added sugar.

[ FGC ]

HEALTHIER HABITS ON THE HORIZON? The COVID-19 lockdowns forced changes on all of us, workwise and personally. But it wasn’t just in the 12 weeks we were subject to some form of social distancing. In the early weeks of Level 1 we also saw how some of those changes were sticking, and could do so well into the future. The issue of working from home is one that could change the work landscape forever, with many realising we can conduct a lot of business that way, as long as we have a decent internet connection. Lewis Road Creamery founder and CEO Peter Cullinane, during a webinar for Food & Grocery Council members, pointed to this as one of the big changes coming out of the lockdowns. He described the virtual meetings many businesses held during COVID-19 as “lifechanging”, with most people being more productive when working from home. The daily online meeting, he said, “holds everyone’s feet to the fire”, and this new way of working would likely continue to exist as some sort of “hybrid”. I know of businesses considering 4/1 or 3/2 splits in favour of office working. Not sitting in traffic and working in a slightly less pressured environment is a good thing, wellbeing-wise. But you can have too much of a good thing, and the other side of the lockdown was we tended to drop good habits, such as regular exercise and fresh air, and switch them for eating and drinking too much of things we need to be careful of. It’s a combination that, post-COVID-19, could be a bit of a concern unless we change things back. With that in mind, I was fascinated to read an Australian study indicating people are getting the message around the types of foods and beverages they’re consuming. In this case it was about sugar sweetened beverages, or SSB’s, and it could be one of the defining studies of its type. It was conducted by a nutrition research company on behalf of the Australian Beverages Council, and revealed something we’ve been talking about in New Zealand for several years – sales of SSB’s, long blamed by public health activists as the single main cause of obesity, are dropping significantly at a time when obesity is rising. (Spoiler alert: some of these numbers are huge). The study, using beverage sales data gathered by research companies Nielsen and IRI, showed between 1997 and 2018 the per capita volume sales of SSB’s fell from 83 litres per person to 61 litres, a drop of 27%. It said this change was largely driven by declining sales of sugar-sweetened

carbonated soft drinks, which fell from 76 litres to 45 litres per capita. So what were people drinking instead? Well, over the same period, sales of non-SSB’s jumped from 48 litres to 88 litres per capita, with the biggest contributor being pure unflavoured still waters – up from 6 litres per person to a whopping 48 litres. Further, the annual contribution of SSBs to the sugar content of the national Australian diet was dropping from 9 kilograms per person to 6.4 kilograms. These are massive changes but putting them alongside obesity numbers from the Australian Health Department gives them even more context. These show that 57% of adults were overweight or obese in 1995, but that had jumped to a concerning 67% in 2017/18. So, while sales of SSB’s were dropping by 27%, obesity was going in the opposite direction, rising 17%. That’s a massive swing. And with Kiwis’ buying, eating and drinking habits not too dissimilar to that of Australians’, perhaps this year is an opportune time to re-set the obesity narrative.

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

“NOT SITTING IN TRAFFIC AND WORKING IN A SLIGHTLY LESS PRESSURED ENVIRONMENT IS A GOOD THING”

FMCG BUSINESS - JULY 2020

[ legal advice ]

COVID-19: HOW TO HIBERNATE YOUR BUSINESS DEBT

James Stewart Director STEINDLE WILLIAMS LEGAL LIMITED https://www.swlegal.co.nz/team/ james-stewart/

“THE BDH SCHEME IS DESIGNED TO GIVE BUSINESSES SOME BREATHING ROOM.”

FMCG BUSINESS - JULY 2020

As part of its ongoing response to COVID-19 the Government has created a novel business debt hibernation scheme (“BDH”). BDH may allow a business with short term cash-flow issues as a result of COVID-19 to buy up to six months’ time to pay its creditors. If the BDH proposal is accepted, businesses are “protected” during this period from certain enforcement actions. The key high-level takeaways on BDH are: • The scheme applies to a variety of entities but excludes sole traders. • BDH only applies to entities formed before 3 April 2020. • A business commences an arrangement by sending an entry notice. This gives the business a period of one month to reach an arrangement with creditors. The business has “protection” during this period so it can make its BDH proposal. • The business is required to repay creditors in full. • BDH does not apply to any new debts the business incurs. • BDH does not cover debts such as employee wages or debts owing to secured creditors who have a general security agreement (GSA). • The proposal must be sent to all creditors. More than half of the business’s creditors by number and value must vote in favour of the proposal for it to be accepted and take effect. Interestingly ordinary creditor compromises have a 75% threshold. • If the BDH proposal does not pass then creditors have their usual rights at law. • If accepted the business has six months of “protection” where generally enforcement action cannot be started or continued including against certain guarantors of the business. • If the BDH proposal is accepted all creditors are bound by the proposal not just the ones who voted in favour of it. • At this stage a business has until 24 December 2020 to enter BDH but may only do so once. BDH is another option for businesses struggling to meet their trade creditors as a result of COVID-19. BDH may be a good option where traditional options are less favourable to the business and their creditors.

This could be, for example, where selling assets would leave the business unable to operate profitably or the winding up of the business is the only other remaining option. Other general options available to businesses including the Government’s small business cashflow loan scheme, ordinary commercial lending, voluntary administration and creditor compromises. Therefore, the question as to whether BDH is right for a particular business will necessarily lead to consideration of these options too. The BDH scheme is designed to give businesses some breathing room so they can continue to survive the unanticipated effects of COVID-19. Irrespective of the problems faced by any particular business, a business’s creditors are not obliged to accept BDH. Therefore, in order for a proposal to be attractive to creditors, the business will have to demonstrate that the proposal is better than the other enforcement alternatives available to creditors. This is likely to be, where it can be proven that the business is viable medium to long term and the winding up of the business will lead to demonstrably worse consequences than if a short-term forbearance is agreed to by creditors. The above is a summary of the high-level workings of BDH. Of course, with any major decision we would encourage all businesses to take specialist professional advice.

[ export ]

A FAMILY’S PLANS TO TAKE CUSTARD SQUARES GLOBAL The Timaru-based Templeton family is building a custard square legacy, which they hope will see it become a global brand. Denheath was originally a café, which Lisa Templeton’s parents purchased in 1996 because they loved the custard square. Lisa’s mother Carol loved the custard square so much, she believed it had potential to be sold worldwide. In 1999, when Carol became terminally ill, husband and wife team Donald and Lisa stepped in to run the business. The pair promised Carol they would take Denheath nationwide and international. In 2000, it was a single product company. “A big unique fluffy custard square, the classic Kiwi treat that started it all,” Lisa says. It has since broadened into desserts and supplies foodservice and retail stores nationwide and exports overseas. Its online sales have grown year after year and show no signs of slowing.

The challenge of growth With the business continually growing and Donald and Lisa constantly looking for more opportunities, challenges arose. “There have been many challenges in the 20 years we have run Denheath,” Lisa says. “Our recent big challenge was getting certified with a dairy Risk Management Programme so we can continue to export. “Red tape can be crazy. Likewise export paperwork with new export customers can be extremely difficult and challenging.” COVID-19 lockdown meant Denheath was not able to supply any foodservice customers and some

retailers, some of which will not reopen. The duo was also progressing several potential export opportunities that were halted as those overseas economies suffered via lockdowns. The pair are thankful they’ve had support from NZTE, friends, family and custard loving followers. Their advice for budding entrepreneurs is to seek and adopt advice as much as possible. “Look for people who have already had some experience in the fields you are working in and ask for advice. “Work with NZTE and any government agencies, industry organisations and the local Chamber of Commerce. Businesses will need guidance to help grow.” In addition, Lisa says “stay positive and back yourselves.” Being a Kiwi company means Denheath is able to access and use ingredients of the highest quality, explains Lisa. “We are able to love what we do and work in beautiful Timaru and have a port at our door for export. New Zealand is trusted internationally and sought after. “Also, Kiwi companies are more likely to work together, collaborate and help each other along the way.” For the Templetons, Denheath’s success is grounded in late Carol’s vision: “My mother had a dream that Denheath and her custard squares would become nationally and internationally known and we are continually working hard to make it happen for her. “If we were corporate enough to ever write a mission statement, achieving her dream would be it.”

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

“WORK WITH NZTE AND ANY GOVERNMENT AGENCIES, INDUSTRY ORGANISATIONS AND THE LOCAL CHAMBER OF COMMERCE.” LISA TEMPLETON OF DENHEATH DESSERTS

The Timaru-based Templeton family is building a custard square legacy.

FMCG BUSINESS - JULY 2020

[ C-stores ]

PROVIDING ESSENTIALS – HOW CONVENIENCE STORES HELP THEIR COMMUNITIES

Dave Hooker is the Executive Director of NZACS. Dave has worked in the convenience industry for over 35 years both in NZ and throughout Asia Pacific including retail management positions with Mobil Oil, Exxon Mobil and BP NZ Ltd.

“CONVENIENCE PROVED ITS WORTH AND BECAME A PREFERRED LOCATION.”

As we moved rapidly into COVID restriction levels earlier this year, the New Zealand Association of Convenience Stores (NZACS) became a focal point for queries and clarification around the burning questions: Can I be open? How can I trade? What can I sell? Many organised Fuel Convenience groups rapidly adapted to safe and secure service for both staff and customers. While fuel sales were down as much as 80% there were some surprising spikes in sales and changes to the traditional mix. Fuel retailers were also hit with the double whammy of massive reduction in demand coupled with a plunging barrel price, leaving many with high priced fuel and a drop in pump prices. Sales of tobacco and vaping products surged as people became confined to home, as did milk, bread and grocery products which are normally just a small part of the mix. Convenience proved its worth and became a preferred location for a fast and uncrowded shopping destination. Mathew Lane, General Manager of Night 'n Day Foodstores made the following observations. “Being nominated as essential businesses servicing the community throughout COVID-19 was both a challenging and rewarding experience. Challenges

Lawrence Night ‘n Day, State Highway 8, Otago.

FMCG BUSINESS - JULY 2020

faced such as additional health and safety measures, supply chain out of stocks and timeframes were some of the most disruptive factors, compared to day to day business.” “Availability of information on customer access and permitted SKU’s added confusion into the mix. Despite the additional challenges, it was rewarding to connect with the customer base in immediate proximity to the sites, and forming new relationships.” “Catering to the smaller basket size and reducing the queues at supermarkets was a key part of managing the newfound demand in New Zealand,” says Lane. NZACS became part of the government COVID FMCG working committee from the outset, which was set up with a diverse representation of retail and manufacturing groups. The objective was to get answers quickly to retail organisations around regulations and how they should be interpreted at store level. As we move cautiously back towards normality NZACS will continue to support its retail and supplier membership base providing government representation on issues relating to the channel and information around the impact of COVID to the trading landscape. Interested in finding out more about NZACS? Check out www.nzacs.com

BE WISE WHEN YOU ADVERTISE Everyone deserves to get what they pay for. FMCG Business was independently audited and verified by ABC, because we want our advertisers to know theyâ&#x20AC;&#x2122;re getting the exposure theyâ&#x20AC;&#x2122;ve been promised.

To advertise contact Vicky Bennett phone 021 626 115, email vbennett@intermedianz.co.nz

[ payment technology ]

VENDING MACHINES ACCEPT BITCOIN Centrapay, the digital asset integrator, has signed “Now we’ve shown how it can work in Australia agreements with Coca-Cola Amatil (Amatil) in and New Zealand, we’re looking to grow the business Australia and New Zealand to give thirsty shoppers the globally. We’ve established a presence in North America option to use their Sylo Smart Wallet to pay for items and will be targeting the US market next with some across Amatil’s vending network using cryptocurrency. world-first innovations,” adds Faury. Centrapay’s world class technology makes it easy for consumers, merchants and machines to leverage About Centrapay digital assets in the physical world. Its platform Centrapay is a digital asset platform. It is changing the is designed to help brands connect directly with way consumers engage with brands and exchange value individuals and increase revenue and operational with merchants. Centrapay is a leader in leveraging efficiency for merchants. blockchain for digital product creation, distribution Transacting with digital assets also reduces how and payments. It provides the technology to integrate much people need to touch the vending machine, a with both consumer and merchant systems to enable Centrapay CEO Jerome Faury major concern during the COVID-19 pandemic. everyday usage of digital assets. Coca-Cola Amatil is the largest bottler and distributor in Asia Pacific, supporting 140 brands and 270 million About Sylo Smart Wallet consumers. Customers can use their Sylo Smart Wallet at any one of The Sylo Smart Wallet is a next-generation app that combines a private Coca-Cola’s 2000+ vending machines with a QR code payment sticker. messenger with a digital wallet. Users can make secure audio and video These are located across New Zealand and Australia and will accept calls, send messages, send and receive digital currencies in chat, and payments in cryptocurrency or other digital assets with a scan of your store Bitcoin or any ERC-20 compatible token. The fastest growing phone’s camera when Sylo Smart Wallet is installed. People only need to dApp in the world, the Sylo Smart Wallet is available now in the Apple touch the vending machine once, to take their purchase. App and Google Play stores. Centrapay CEO, Jerome Faury, says that integration complexity and poor user experiences are barriers to adoption of Web 3 technology, such as digital identity and assets. “We have solved both these issues. Centrapay is pioneering the way to enable this new internet of value and bring its benefits to both consumers and merchants,” he says. “And it comes with the added benefit of reducing physical contact and addressing the hygiene concerns we’ve all become acutely aware of due to COVID-19. “At Centrapay, we’re working to create a future where individuals are in control of their own data and digital identity. Brands can connect directly and ethically with people, empowering them to make the right purchasing decision, whilst also supporting their retail and other distribution partners. Available on Youtube. Search: Buy Coca-Cola with Bitcoin. 32

FMCG BUSINESS - JULY 2020

[ profile ]

PRODUCT RECALL?

NO STRESS WITH NEW CRISIS APP Auckland-based public relations company Wright Communications wants to change the way issues and crises are managed. The company has launched a smartphone-based app it believes could replace conventional approaches to managing a crisis, which are generally paper-based and can fail to keep pace with a fast-breaking scenario. Managing Director Nikki Wright says the digital revolution has meant a crisis affecting an organisation can become public knowledge within minutes of it occurring. “When that happens, it’s a race to keep pace with the crisis and a speedy response can minimise reputational damage.” Wright says activating a paper-based crisis management system can mean a time delay and confusion when a quick and orderly response is critical. “A crisis doesn’t tell you when it’s coming, so when one does break out, the key players in the response may be a long way from the relevant files – or out of the office in the field. Getting everyone together takes time. “There’s also generally a lot of confusion when a crisis erupts: it may not be clear what’s happened, who’s involved and where it’s taking place. Plus, you may have multiple organisations caught up in the crisis. “In our experience, and from what we’ve seen globally in recent years, that confusion and the delays in communicating what’s happening and what’s being done about it often cause an organisation’s reputation to take a big hit. A prompt response can avert that – an issue can be resolved before it gets out of hand.” Wright Communications sourced the phone-based app, called In Case of Crisis, from the US. Wright says the app stores everything you need in relation to potential issues and crises on the phone, including contact lists and response protocols, and enables an organisation’s crisis management team to securely send alerts and notifications to staff members – even when the power is out. “Your whole crisis management kit is portable, expandable and updateable – easy to access and search, and send out the comms that are needed. Almost everyone owns a smartphone. They are almost our ‘sixth sense’. Crises can happen anytime and anywhere, so a smartphone is by far the best tool to access people, to manage a situation. “Having your crisis ‘kit’ on a single platform provides the essential ‘command and control’ function needed to effectively co-ordinate all the parties caught up in the crisis.” Wright says In Case of Crisis was a strong fit with the company’s expertise in sustainability and Corporate Social Responsibility. “Issues and crises are often caused by an organisation’s failure to take their environmental and social responsibilities seriously. Neglect of chronic issues – which are often plainly apparent to the organisation’s shareholders – can easily tip into a crisis.” An added benefit of the app is the reduction of resource costs and use through eliminating a paper-based filing system and the need for

face-to-face meetings. “The app brings all parties together and shares the information via their phones – it’s a quantum step forward.” Wright Communications has the New Zealand rights to market the app, which is currently used by around 750 organisations globally with an almost 100% subscription renewal rate over the last four years. “When you consider the operational, reputational and infrastructural costs that can and do arise from a full-blown crisis, which can be in the millions of dollars, the app is a prudent investment for organisations with high risk exposure,” says Wright. “We feel it will be a welcome addition to a company’s toolkit, bringing their crisis response into the 21st Century and much more in sync with the communications environment we are operating in now.” For further information visit https://wrightcommunications.co.nz/crisis-app/ Nikki Wright ph (09) 366 2450 / 021 662 372 or email nikki@wrightcommunications.co.nz FMCG BUSINESS - JULY 2020

NEW ZEALAND FOOD AWARDS CELEBRATES YOUR

‘NZ FOOD HEROES’ Introducing the 2020 NZ Food Heroes Awards

Food – what to make, how to get it and where it comes from – has been a huge preoccupation for many Kiwis during the past few months. So it seems only appropriate that this year, the New Zealand Food Awards, powered by Massey University, celebrates the people who make it all happen. Due to the impact of the COVID-19 pandemic, this years’ awards have shifted from their usual programme to a community-focussed celebration across all sectors of New Zealand’s food and beverage industry. From baking to business models, nominations for the NZ Food Heroes Award have been flooding in. Diverse in nature, the entries all 34

FMCG BUSINESS - JULY 2020

reflect Kiwi innovation and the community spirit that has flourished during the COVID-19 response. “Rather than skip a year, we wanted to take this opportunity to shine a light on the essential workers in the food and beverage sector who ensure New Zealanders have access to quality, local food in a time of crisis. The work that continues to be undertaken by our food industries on the frontline has been invaluable and I think New Zealand has come to see their roles in a new light,” says Massey University Vice-Chancellor Professor Jan Thomas.

[ events ]

Still time to nominate your NZ Food Heroes This year, the public is encouraged to get behind the New Zealand Food and Beverage sector by nominating their ‘NZ Food Heroes’ people or organisations that have supported the New Zealand food and beverage supply chain in some way. Nominations are open until July 31, 2020. Massey University’s National Events and Sponsorship Manager, Kelly Douglas, says: “The New Zealand Food Awards, Massey University and our partner network continue to be amazed by the efforts of our community to help Kiwis and businesses survive this challenging time and we believe they deserve some recognition. So that’s what this year is all about, saying thank you for everything they’ve been doing. Like us, we bet you have a few heroes you’d like to thank. So tell us who they are. We’ll be giving a bit of love back to the New Zealand ‘Food Heroes’ you nominate.”

Nominate your heroes online today To nominate, visit www.foodawards.co.nz/heroes and complete the form by stating who they are and why they are your hero. You’re encouraged to shout out to them on social media by tagging in the New Zealand Food Awards and using #NZFoodHeroes and #NZFoodAwards so that Aotearoa can celebrate them along with you. The finalists will be announced August 31, with a celebration for the finalists and a winner’s announcement on October 8, 2020.

To the farmers sowing seeds, harvesting crops or feeding stock, To the manufacturers keeping up with supply demands, To the frontline workers putting products in our carts (or on our doorsteps), To the brands lending a helping hand to businesses in need, And to everyone who’s been sharing the NZ Food and Beverage workload, Thank you for being New Zealand Food Heroes.

“THE WORK THAT CONTINUES TO BE UNDERTAKEN BY OUR FOOD INDUSTRIES ON THE FRONTLINE HAS BEEN INVALUABLE.”

www.foodawards.co.nz @NewZealandFoodAwards @NZFoodAwards @NewZealandFoodAwards

FMCG BUSINESS - JULY 2020

[ events ]

THE BABY SHOW IS BACK! The first major consumer event to return to ASB Showgrounds; the Baby Show, is due 21 – 23 August 2020. Steeped with a 26-year history, the Baby Show is New Zealand’s largest event for expectant and new parents designed to support their parenting journey, every step of the way. The Baby Show will be the first indicator of whether there really has been a COVID-19 baby boom. It’s also an opportunity for parents of babies born during lockdown to gather to share their incredible The Baby Show is back in August birth stories, connect with support services and learn a wealth of tips and tricks in the free Smart Start Seminar Series. The event couldn’t come at a better time for small companies and start-ups. The Baby Show gives businesses a much-needed sales boost; last year stimulating an estimated $7 million across three days of the show. With an anticipated 150 exhibitors, parents will have access to everything they need from pregnancy through to pre-school. There’s no better place for visitors to compare products, shop around for the best deals, test drive the latest buggies, stock-pile nappies and wipes, discover the latest gadgets and glean expert advice on a highly sought after, rumoured-to-exist – ‘full night sleep’! Event organisers have reduced ticket costs to make coming to the Baby Show more affordable for parents to a maximum of $15 per ticket.

Children under the age of 16 are still free to attend. “We understand families and new parents may be struggling, so reducing the admission fees will make coming to the Baby Show a little bit more affordable. Savvy visitors can also take advantage of early bird pricing by signing up to our newsletter to receive a promo code for a special $12 per ticket*,” says Rebecca Stewart, General Manager of XPO Exhibitions and mother of two. Visitors can be confident that the Baby Show will be implementing a rigorous health and safety plan including contact tracing, extra-wide aisles, hand sanitizing stations, additional cleaning and more. Tickets on sale from 1 July, $13 online before 17 August or $15 at the gate. For more information and tickets visit www.babyshow.co.nz. *Early bird tickets are limited and available until sold out.

GROCERY CHARITY BALL 2020 CONFIRMED COVID-19 presented many challenges for New Zealand and an especially busy time for the Grocery Industry. To celebrate all the success and hard work for the FMCG Industry, with the support of Foodstuffs, Countdown and The New Zealand Food & Grocery Council, we are delighted to announce the new confirmed date for the Grocery Charity Ball is Saturday 14 November 2020. Key to Life is the beneficiary for the 2020 event. The past few months have highlighted just how important it is to look after your mental health in these challenging times. “The Key to Life Charitable Trust is a community peer support group, aiming to forever change the way New Zealanders think, act and feel about mental health and suicide. By working seamlessly with mental health professionals, service providers, astute business leaders, and our communities we believe it is possible to reverse the population trends of depression and suicide by effecting a positive social change,” say the organisers of the event. A great evening is planned at Cordis Auckland on 14 November 2020, including an exclusive performance by the Exponents. 36

FMCG BUSINESS - JULY 2020

Out & About

o, Precinct Properties kland: [L to R] Craig Stob ; of Commercial Bay in Auc Precinct Properties CEO rd, cha Prit tt Sco ; At the official opening Zealand ern, Prime Minister of New t. men elop Dev ic nom Chairman; Jacinda Ard Eco ister of kland; Phil Twyford, Min Phil Goff, Mayor of Auc The Drunken Nanny ‘girls’ at the award-winning cheesem aker’s family farm near Martinborough.

Jenny Bramley tries out new milk dispensers with glass bottles, which will be installed at Farro in Auckland before being rolled out nationwide in other premium grocery stores.

SNAP AND

WIN!

al co Year, six region ulturist of the r. NZ Young Vitic final in Octobe va l rte na Co tio na 20 e 20 th ed by To find the August, follow d an ly Ju in will be held

mpetitions

Has your team moved to new premises, or been part of a fun event, great harvest, or promotional activity? Send us your favourite snapshots to be in to win yourself 2 x cases of Remedy Kombucha delivered to your door. Remedy Kombucha is a fizzy drink made right: tasty, live cultured, long aged brewed goodness, with no sugar, naturally!

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

FMCG BUSINESS - JULY 2020

Certified Sustainable Stoneleigh vineyard

100% CERTIFIED RENEWABLE ENERGY FOR WINEMAKERS New Zealand businesses have begun certifying their energy use as renewable under a new product offered by Meridian Energy – supported by the New Zealand Body for Certificate Issuance – the NZECS. Pernod Ricard Winemakers are among some of the first to adopt the Certified Renewable Energy product, which allows them to purchase certification to match their electricity consumption with Meridian’s 100% renewable energy generation. So, whilst they won’t be getting their electricity directly from Meridian’s renewable energy generation sites, the electricity they use is matched on an annual basis with 100% renewable energy generated by Meridian. Renewable energy certificates (RECs) are issued by the NZECS and are allocated to businesses to verify renewable energy generation equivalent to their consumption. Certified Renewable Energy also enables businesses to report their Scope 2 electricity emissions as zero*. Meridian’s Chief Customer Officer, Lisa Hannifin says there is a groundswell of demand among New Zealand businesses for renewable energy procurement, which is already available in many countries including Australia. “Despite 85% of our energy coming from renewable sources, New Zealand is one of the few developed countries where there has previously been no market or regulatory framework enabling the certification of renewable energy. “In Australia businesses can certify, despite only a third of their energy coming from renewable sources, and their ongoing reliance on coal. As a 100% renewable generator, it makes sense for Meridian to give Kiwi businesses the same opportunity,” says Hannifin. Brett McKinnon, Pernod Ricard Winemakers’ Chief Operations Officer, says “Pernod Ricard Winemakers is excited to be partnering with 38

FMCG BUSINESS - JULY 2020

PRW Marlborough Falcon Conservation Trust

Meridian to produce our wine with the help of 100% certified renewable electricity for all our Pernod Ricard Winemakers sites.” “Being sustainable and responsible is an integral part of our New Zealand wine business and has been for many years, which makes this a natural next step for us. In alignment with our global ambition to create Good Times from a Good Place, our aim is to minimise our impact on the communities where we operate and preserve the environment for future generations to come.”

[ feature ]

Kaituna vineyard wetland

New Zealand’s electricity grid has presented challenges for certifying renewable energy use because electricity generated from hydro stations and wind farms is combined into a single wholesale pool with energy generated from non-renewable sources. Comparable markets overseas have addressed this by issuing RECs enabling businesses to guarantee generators have produced renewable energy at least equal to their total consumption. The Palmerston North-based NZECS established the scheme to meet international precedents for RECs while working in the New Zealand context. After a successful pilot with Garage Project last year, Meridian’s Certified Renewable Energy certificates were also accepted by Toitū Envirocare in their audit of Fisher & Paykel Healthcare’s ‘carbonreduce’ certification. “Our renewable energy generation should be a selling point for Kiwi businesses. Meridian’s Certified Renewable Energy finally gives them the ability to leverage this when competing on the world stage and demonstrate their commitment to New Zealand’s low carbon future,” says Hannifin.

Pernod Ricard’s sustainability initiatives in NZ Pernod Ricard Winemakers has a long-standing commitment to the environment. “We are proud of our environmental leadership, and we strive to accurately measure and constantly improve our sustainability across all areas of our business and brands. In New Zealand, we have a number of initiatives aimed at minimising our impact on the communities where we operate and preserving the environment for future generations to come,” says McKinnon. • 100% of grapes sourced from vineyards certified sustainable under Sustainable Winegrowing New Zealand. • All sites certified to ISO 14001 for environmental management, health and safety management and quality management. • Kaituna Vineyard Wetlands Restoration – over 8000 regeneration and restoration plantings has seen the return of native flax, raupo and toi, along with 85 different species of fish and insect life including baby koura (freshwater crayfish) and aquatic mayflies.

“PERNOD RICARD WINEMAKERS HAS A LONG-STANDING COMMITMENT TO THE ENVIRONMENT.” • Winners of the 2017 Drinks Business Green Awards – Amorim Biodiversity Award, Shortlisted Finalist in the NZ Green Ribbon Awards (Ministry for the Environment) - biodiversity category 2016. • 94 hectares of Biogro certified organic vineyards, more than 26 hectares of native plantings to support biodiversity, riparian plantings along vineyard waterways for water quality. • Partnership with Conservation Volunteers - more than 1000 hours work at local wetlands. • Ecological surveys to benchmark the health of our soil, waterways and biodiversity. • Beehives and wildflower project on vineyards, companion planting for beneficial insects and soil improvement. • ‘Tui to town’ plantings to encourage native birds back to the valley from surrounding hills and floating raft habitats for endangered dabchicks breeding and protection. • LED lighting, timers and sensors, heat recovery and heat transfer for energy efficiency in the winery. • Sheep leaf plucking to open the canopy up to sunlight and air movement, this has numerous benefits from spray reduction, energy reduction and soil improvement. • Since 2010, an 85% decrease in winery waste to landfill. Current major project aimed at zero waste to landfill. • More than $500,000 donated to the Native Falcon Encounter – education and flying display of New Zealand’s incredible and threatened native falcon, aviary walkway and information signs. • Annual independently verified carbon inventory since 2010, to date 40% reduction in CO2 emissions across all NZ Operations. *Using the market-based reporting methodology outlined in the GHG Protocol

FMCG BUSINESS - JULY 2020

[ James & Wells ]

BURSTING PROSECCO’S BUBBLE WHAT GI LAW CHANGES COULD MEAN FOR LOCAL PRODUCERS

Stephanie Hadley Associate, James & Wells James & Wells are one of New Zealand’s largest, privately owned, patent and trade mark attorney firms. Their award-winning team is widely recognised as one of the very best in Australasia.

“THERE IS AN ONGOING DISPUTE BETWEEN AUSTRALIA AND THE EU AS TO THE STATUS OF THE WORD ‘PROSECCO’.”

FMCG BUSINESS - JULY 2020

Free Trade Agreement negotiations between New Zealand and the European Union (EU) have asked for the recognition and protection of a list of EU geographical indications (GIs) in New Zealand to be considered for wines, spirits, beers and foodstuffs. While the New Zealand government’s public consultation process has now ended, across the Tasman battles are still being fought over such contentious issues. GIs are words that are associated with certain characteristics, reputations or qualities of goods that are directly attributable to a geographic origin. Commonly known examples include ‘Champagne’ and ‘Bordeaux’, both of which indicate wines from particular regions of France. The connection between a product and a geographic origin may be due to natural factors, like terroir, or human factors like the traditional means of production. New Zealand’s current GI regulatory framework is consistent with the World Trade Organization’s Agreement on Trade-Related Aspects of Intellectual Property Rights (the TRIPS Agreement), which provides internationally agreed minimum standards for GI protection. The interests of the consumer and the interests of the producer are constantly debated in relation to GI’s. Standards seek to determine which terms have become generic and should be

freely usable to describe products, and which are of intrinsic value to producers and should be protected. There is an ongoing dispute between Australia and the EU as to the status of the word ‘prosecco’. The EU argues that prosecco is a GI due to its strong historical ties to wine-producing regions of northern Italy, and that under the TRIPS Agreement, the term should be prohibited for use in relation to product produced outside of the region. The production and sale of prosecco in Australia and New Zealand was approved by a World Trade Organization ruling in 2013, so a reversal of this decision could effectively halt business for local prosecco producers. If a low threshold were applied in determining GIs for foodstuffs, relatively common foods could become GIs based on where they were historically popularised, even if there is little or no discernible difference in quality. If prosecco were to be recognised as a GI, it might likewise signify that food or beverage names with strong historic New Zealand associations are more easily able to acquire GI status. As negotiations with the EU continue it is likely this topic will generate more debate, perhaps now even more so in a post COVID-19 world where the origin of our foodstuffs is also a political matter.

[ wine news ]

BRANCOTT ESTATE UNVEILS A PLAYFUL NEW LOOK When you’re from a land that’s on the other side of the world, you can’t help but see things differently, which can lead to wonderful things. Brancott Estate has revealed a distinctively fun and fresh new positioning and packaging design inspiring wine lovers to ‘taste life on the flipside’. As the originators of the Marlborough style of Sauvignon Blanc, Kiwi ingenuity has always been at the heart of Brancott Estate. At a time when convention said Marlborough was only good for sheep farming, the brand flipped that thinking in 1973 and started Brancott Estate, the first vineyard in what is now one of New Zealand’s most celebrated wine regions. It’s this notion of thinking differently that leads to the brand’s new aesthetic, paying homage to the sheep, who to this day play an integral role on the Brancott Estate vineyards, whilst also portraying a spirit of originality by literally flipping the beloved national icon upside down.

Quirky and novel in design, the light-hearted approach to the branding portrays the unconventional way of thinking embraced by the Brancott Estate brand. Unmissable on the shelves in a modern shade of blue, the packaging is both eye catching and creates intrigue. Eric Thomson, Global Marketing Director for Pernod Ricard Winemakers, said, “this new look and positioning is a real milestone for Brancott Estate who, despite taking winemaking very seriously, has always been nonconventional in spirit. And it’s not stopping there. Over the next 12 months consumers can look forward to many more playful moments from Brancott Estate including a new media campaign starting in July.” Brancott Estate’s new packaging can be found across their entire range of Sauvignon Blanc, Chardonnay, Pinot Gris, Riesling, Pinot Noir and Merlot, and is available now from leading liquor outlets at an RRP of $11.99.

ROCKBURN ANNOUNCES NEW GM Rockburn Wines Ltd. has confirmed the appointment of Tim Severne as General Manager. Severne has significant sales and marketing management experience working with leading New Zealand companies such as Glengarry Wines, Hancocks Wine, Spirit and Beer Merchants and Marisco Vineyards. He most recently held the position of Global Sales Manager at the Antipodes Water Company, New Zealand’s leading premium bottled water. Antipodes Water is sold in over 15 countries and enjoyed in many of the world’s greatest restaurants and hotels. Director of Rockburn Wines, Chris James said; “Tim has had 20 years’ experience in the New Zealand wine and hospitality industry and is well known within the on and off premise markets. We believe, with his knowledge and enthusiasm that he will continue to expand the sales and promote the Rockburn brand, so that it maintains its position as one of Central Otago’s leading producers of premium wines.”

Severne commented that he was “proud to be leading a talented team at one of the great Central Otago wine companies. Seeing Rockburn Wines poured alongside great cuisine and sold in premium retailers around the world will be a focus.”

DID YOU KNOW?

Rockburn Wines has appointed Tim Severne as General Manager.

•R ockburn takes its name from the rugged, rock-strewn, burn-scarred landscape of Central Otago. The boutique producer has two vineyards, one on the Gibbston Back Road in the Gibbston Valley, and the other at Parkburn in the Cromwell Basin with its stateof-the-art winemaking facility based in Ripponvale, just out of Cromwell. • The premium producer also has a boutique Cellar Door in the Gibbston Valley, on a site which is both close to its Gibbston vineyard and to Queenstown; New Zealand’s premier tourism destination. Rockburn not only produces Pinot Noir of stunning quality but also award-winning Sauvignon Blanc, Pinot Gris, Riesling and Rosé. FMCG BUSINESS - JULY 2020

[ drinks news ]

SARAH JESSICA PARKER’S WINE LABEL SCORES GOLD

Sarah Jessica Parker

The label on American actor Sarah Jessica Parker’s Sauvignon Blanc from Invivo Wines, has won a gold medal at the Pride In Print awards 2020. Pride In Print is seen as the annual benchmarking event for the printing, packaging, signage and graphic arts industries and attracts hundreds of entries from all over New Zealand. Winners are usually announced at a glittering dinner event, but this year the awards have been announced live online because of COVID restrictions. Parker’s collaboration with Invivo has scooped up a number of wins, and this gold medal for its Invivo X Sauvignon Blanc 2019 Marlborough wine label is now among them. Invivo Wines is headquartered in Auckland and its winery just south at Te Kauwhata.

They were designed by Parker who painted the original one and entered into the awards by Rapid Labels. Pride In Print judges said the label showed “a clever use of inks to give the effect of wet paint” and had a “great paint effect using high build.” They gave the label an eight out of 10 for degree of difficulty in printing it. Parker’s branded debut Invivo X, SJP Sauvignon Blanc 2019 wine, saw it win a Blue Gold medal at the 40th Sydney International Wine Competition (SIWC) last year. Her wine was blended from five parcels of 2019 Marlborough fruit to produce an easy-drinking, but distinctive wine with lively aromas of passionfruit and fresh-cut grass.

CREAMY SALTED CARAMEL CHOCOLATE STOUT A delicious new release from the dream-team of good mates and iconic Kiwi companies, Moa Brewing and Lewis Road Creamery brings a new flavour to their epic Milk Stout line-up. Following on from the launch of Espresso & Chocolate and Milk Chocolate Stout, completing the trio on shelves is another special brew, Salted Caramel Chocolate Stout. The base beer of this delectable beverage is still Moa’s classic milk stout with a delicious touch of chocolate, but now boasting luscious notes of caramel and toffee courtesy of crystal malts. It’s creamy and rich! With a passion for good dark beer and rich Belgian chocolate, and a dash of Heilala Vanilla, Moa brewed a highly drinkable stout for those who love beer, chocolate or all of the above. Upping their game in 2018, Moa and Lewis Road reunited to create an invigorating brew of Espresso & Chocolate Milk Stout. This new release delivers the fullness of a milk or cream stout, balanced with a hint of chocolate from cocoa nibs and chocolate malt. Tempered with an integrated nutty coffee flavour, and with coffee also heightening the bitterness, this one’s a winner! 42

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