FMCG July 2023

Changes on the horizon

“Increased competition will take time. We’re establishing the conditions to ensure change happens,” said Dr Duncan Webb, Minister for Commerce and Consumer Affairs, as the Grocery Industry Competition Bill had its final reading in Parliament. This means we are very close to having the legislative framework for the establishment of a Grocery Commissioner at the Commerce Commission and all the other parts of the law. The new Grocery Commissioner will oversee supermarket conduct and encourage competition, supported by a grocery team that has already been largely assembled. More on this on pg 8.

We will keep a close eye on these and other industry developments and share daily updates over on www.fmcgbusiness.co.nz . You can subscribe to our e-news there and also join our conversations on LinkedIn, Facebook and Instagram.

Meanwhile, this issue of FMCG Business is curated to bring you exclusive expert advice, category insights from Circana and local suppliers, new product updates and much more. We welcome GS1 CEO Dr Peter Stevens as guest writer, discover payment tech and AI innovations in supermarkets around the world and take a deep dive into winter wellness with news from the Vitamin & Supplements category, fresh seasonal produce and ‘Better for you’ drinks.

I gave ‘Dry July’ a go last year to support a friend and it wasn’t difficult at all, thanks to some of the amazing new alcohol-free alternatives from the supermarket.

Circana retail data shows that the alcohol category in grocery is currently worth $1.6 billion, representing 9.2% of the grocery wallet. However, in the past year the category has experienced a decline of 4.2 % in value and 8.4% in units. Health and wellness trends have fuelled the growth specifically of functional, sports, energy, and low alcohol beverages. Find out more about these drinks trends on pg 40-41.

Here’s to changes that are hopefully better for us all!

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

ON THE COVER

Weet-Bix™ have proudly supported the All Blacks since 1998 and are excited in their 25th anniversary year to include the Black Ferns as part of the promotion, bringing back the much-loved Stat Attack™ game! Read the full story on pg 9.

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Who is the fairest of them all?

PAK’nSAVE and New World have been recognised as leaders in fairness and responsibility in the latest Kantar Reputation Index.

PAK’nSAVE has been named New Zealand’s leading company for fairness for the ninth year in a row and has placed within the top three performing companies in Aotearoa. And New World ranked in the top five of the country’s responsibility leaders, and secured 14th spot overall in the top 20 index.

Foodstuffs New Zealand Managing Director Chris Quin says fair prices are PAK’nSAVE’s why, “so it’s wonderful to see us number one for fairness again this year and it’s a huge nod to the great work PAK’nSAVE teams continue to do to ensure they deliver New Zealand’s lowest prices.

“We know that cost of living is top of mind for New Zealanders at the moment and our 500+ grocers and their teams across New Zealand are focused on delivering the best value, buying well and finding efficiencies in our business to pass on to our customers.

“PAK’nSAVE delivers New Zealand’s lowest food prices by taking a no-frills approach, putting everything into low prices, which it has done for the past 37 years and will continue to do,” says Chris.

The Kantar Reputation Index measures excellence on four key platforms: leadership and success, responsibility, trust, and fairness in pricing with a score of 105 or above considered world-class.

‘We’re all incredibly proud that PAK’nSAVE continues to hold the number one spot for fairness, which it has done since the index began in 2015, this year scoring an incredible 119, the highest among all attributes,” he says.

“We also need to give congratulations to our New World grocers and their teams. To be placed in the top 5 as leaders in responsibility by New Zealand consumers and to have maintained the 14th spot in the top 20, is the result of their determination to do the right thing both for their customers and their communities.”

The Warehouse expands fresh fruit and vege trial

The Warehouse has announced it will be expanding its fresh fruit and vegetable trial to a further five stores and three new regions across New Zealand.

Manukau, Te Rapa (Hamilton), Fraser Cove (Tauranga), Eastgate (Christchurch) and Dunedin South have been added to the list of The Warehouse stores stocking a range of fresh fruit and vegetables, joining Whangārei, Westgate (Auckland), Lyall Bay (Wellington), Riccarton, Timaru, and Invercargill, which have been piloting fresh items since February 2023.

The range is reviewed weekly based on seasonal availability. The Warehouse is currently selling carrots, onions, potatoes, apples, bananas, lemons, golden kiwifruit, mandarins, avocados, and garlic.

The Warehouse Group Chief Executive Nick Grayston said the retailer was encouraged by the reaction from its customers.

“We’ve had a very strong response from customers since we launched fresh fruit and vegetables in our initial six stores. Items that

are locally grown and great value are important to our customers right now, and this expansion doubles our fresh offer across The Warehouse,” said Grayston.

“Grocery is an area we are working hard in, but the lack of access to wholesale supply at equitable cost prices remains our biggest barrier to doing more. The supermarket duopoly is very comfortable with the status quo. We’re not, and we’ll continue to push to make groceries more affordable for Kiwi families.

“We know every dollar counts so expanding our fresh fruit and vegetable offering into more stores is another important step for us.”

Foodstuffs New Zealand Managing Director Chris Quin

What’s

Chipoys expands to Australia and New Zealand

Chipoys is an authentic rolled tortilla chip from America packed with bold flavours and fun in every bite. All four flavours are included in the expansion – Original, Spicy Ranch, Chile Lemon, and Fire Red Hot – with new flavours currently in development that are set to continue to challenge the snack industry. Retailers are encouraged to contact sales@lafiesta.com.au for orders and additional details.

World’s best vegan sour cream?

Kiwi plant-based pioneers Angel Food recently celebrated their 17th birthday and launched a sour cream, which they say is so close to dairy that it trumps all similar products currently available in NZ, Australia and the UK. For now it’s only available in Aotearoa, but watch this space!

www.angelfood.co.nz, info@angelfood.co.nz, 09 3764623

A cerealsy nutty new Blue Frog arrival

Blue Frog Breakfast are welcoming a brand new Granola to their ranks - a collab with the team at Pic’s Peanut Butter that has resulted in the ultimate crispy, crunchy, peanut buttery Granola. With over 50% nuts and just 1g of sugar per serve, this is a bag of breakfast goodness you’ll want to get your hands on!

www.bluefrogbreakfast.co.nz

Beggi’s Range of Vapour Patches containing 100% natural essential oils helps to clear the nasal passage to let you get a good night’s rest. Family safe and products to suit ages from 6 months. Available in Kids 16’s, Lavender Bedtime 24’s and also five times the strength Adult 24’s. For more info contact your Storelink Territory manager.

NEW Glow Lab Complete Care Shampoo & Conditioner

NZ’s #1 Natural Personal Care brand introduces Complete Care Shampoo & Conditioner, enriched with 8 active ingredients that nourish, strengthen, and add shine for healthier hair every day. Keratin strengthens hair, Betaine and Glycerin boost hydration, while natural extracts Jojoba Oil, Argan Oil, Aloe Vera and Vitamins E & Pro-B5 moisturise and maintain shine. Healthier hair for the whole family, naturally. Visit glowlab.co.nz

Suppliers welcome passing of grocery bill

The New Zealand Food and Grocery Council welcomes the passing of the Grocery Industry Competition Bill in Parliament. The bill will address a wide range of much-needed changes in the sector, says Chief Executive Raewyn Bleakley.

“This is a giant step toward a better and fairer grocery sector, and that will benefit both consumers and suppliers. We are delighted the key elements of the bill, concerning the formation of a Grocery Commissioner inside the Commerce Commission and the Grocery Supply Code, have passed unchanged. Together, these will make a meaningful difference to competition and behaviour across the sector.

“Both supermarket chains have already opened up their wholesale operations to independent retailers after the Government made it clear this needed to happen ahead of the legislation.

“It’s premature for anyone to be complaining the market study and resulting Government reforms haven’t had an effect yet when the legislation has only just been passed. It’s a bit like saying the All Blacks have lost before they’ve even arrived in France.”

Raewyn Bleakley says NZFGC is particularly pleased the key recommendations around the grocery supply code have been retained.

These include:

• Having the Minister consult the industry before recommending a code.

Supie expands

Online grocery startup Supie says it has signed up about 55,000 customers, has about 130 staff, is now planning physical stores — and has already mapped out a first location.*

Supie is currently operating its online supermarket delivery service in Auckland, parts of the Waikato, Bay of Plenty and Rotorua.

The business was founded in 2021 by Sarah Balle, who sees the online-only supermarket as a potential third player going up against the duopoly of Foodstuffs and Countdown, much like how 2Degrees disrupted the telecommunications market.

Supie offers value for consumers every day including on fresh fruit and vegetables, Balle says, by keeping overheads low, getting rid of confusing on-off “sale” pricing, and not investing in competition with New Zealand’s food producers with its own-brand products.

Balle says Supie is cheaper; she does her own regular market comparisons and says her most recent virtual shopping comparison

The Commerce Commission to administer the code in the longterm, but the Minister to develop the first version so it is “introduced

Ensuring the code captures all the related parties of a regulated grocery

The Commission to review and report on the code at least every five years

“Enabling the Minister to move fast on getting the code in place is vital, and the industry is ready to help make that

“It’s great also to see the select committee’s recommendations around a dispute resolution scheme have been retained, particularly that it covers a diverse range of suppliers, no matter their size, and that disputes must be resolved with 25 working days. These and other moves in the bill will put a lot of supplier minds at rest and give them the confidence to go about their daily work knowing they are operating in a competitive yet fair environment.

“We are now eagerly awaiting the announcement of the Grocery Commissioner and we’ll be working very hard to make all these new measures as effective as possible so our members – the suppliers and manufacturers – have confidence and can work well with the retailers to together deliver consumers optimum choice and price.” Read the bill here: https://www.legislation.govt.nz/bill/ government/2022/0191/latest/whole.html

found Supie was on average cheaper by a dollar on most products she compared.

To get free delivery and 2% to 10% cashback on all products purchased, Supie offers a $99 Supie+ annual membership.

Balle says the startup has been growing “like crazy”, with fulfilment staff making up most of Supie employees, and 15% growth week-on-week in orders dispatched.

Her vision for the future would see the main weekly grocery shop order coming from Supie’s website, delivered to your home, with a Supie store close to you for the “top-up shop”. Balle says Supie is working on its physical store strategy, but won’t be replicating the “big box” style of the dominant players. Instead, Supie’s outlets will be smaller, “community-focused”, high-tech and probably unmanned. Supie will bring a new wave of customer experience to New Zealand, she says. Supie’s planned physical expansion won’t happen this calendar year, and it will need still need to raise capital.

*Source: interest.co.nz

NZ FGC Chief Executive Raewyn Bleakley.

NZ’s best vegan saussies revealed

The fifth annual Vegan Sausage Awards took place on 26th June, and a new category of plant-based meat alternatives was added this year to showcase the many delicious plant-based pastrami and other deli meats made here in Aotearoa.

The Supreme Winner once again was Plan*t with their incredible Spicy Chorizo. The judges agreed it had a “good casing, the outside was crispy, whilst the inside was soft and juicy. Good fat content.”

Sausage and deli meat alternative makers from all over New Zealand entered this year’s awards, and the judges had a monumental task of choosing the best bangers and delicious deli plant meats.

The judging panel included Jasbir “Jazz” Kaur, multi-award-winning executive chef and trainer and President of the NZ Chef Association Auckland; Plabita Florence, owner and chef of vegetarian restaurant Forest; Chef Fred Wong and celebrity judge, vegan comedian Tom Sainsbury, who has learned a great deal about what to look for in a sausage from his previous judging duties.

“Vegan sausages are here to stay, they are healthier for you, better for the environment and are a more compassionate way of eating, whilst still enjoying your favourite foods,” Vegan Society Spokesperson Claire Insley said. “With over 8 billion people and rising, the move towards a plant-based economy is ever more pressing. Plant-based sausages are a fun and easy way to look after our planet and our health.”

The Vegan Sausage Awards category winners are:

BREAKFAST SAUSAGE

WINNER Plan*t- Sage and Onion

RUNNER UP Plan*t- Spicy Chorizo

BANGER

WINNER Vegetarian Butcher- Spicy Italian

RUNNER UP Plan*t- Spicy Chorizo

HOTDOG

WINNER Plan*t- Spicy Chorizo

RUNNER UP Vegie Delights- Hot Dog

SAUSAGE ROLL

WINNER Goodtime Pies Vegan Sausage Roll

RUNNER UP Baker’s Son ‘Dad’s Pie’ - Vegan Sausage Roll

SPECIALITY SAUSAGE

WINNER Vegetarian Butcher- Spicy Italian

RUNNER UP Omahu Rd Deli- Kawakawa

CHORIZO

WINNER Plan*t- Spicy Chorizo

RUNNER UP Vegetarian Butcher- Chorizo

DELI MEAT – PASTRAMI

WINNER Omahu Rd - NY Style Pastrami

RUNNER UP Vegetarian Butcher- Pastrami

DELI MEAT – OTHERS

WINNER Witty Tui-Italian Style, RUNNER UP Plan*t- Chick*n

The much-loved Stat Attack™ game is back!

Weet-Bix™ have proudly supported the All Blacks since 1998 and are excited in their 25th anniversary year to include the Black Ferns as part of the promotion, bringing back the much-loved Stat Attack™ game that lets rugby fans collect their cards and get to know their favourite players!

Has Stacey Waaka or Portia Woodman-Wickliffe crossed the line more times?

Is Brodie Retallick taller than Sam Whitelock?

How many Weet-Bix does your favourite rugby player eat?

Get your cards in specially marked Weet-Bix 1.2kg and 750g packs today and start playing Stat Attack with your friends and whānau – it’s a simple, fun game, and the better you know your player stats the more likely you are to win!

This year there are 42 unique cards to collect with 17 All Blacks and 17 Black Ferns players. There are also the special categories - six ‘Legends’, two ‘Coaches’ and the highly sought-after ‘Gold Card’, which this year features Dan Carter.  Available in specially marked packs until the end of October or while stocks last, this is the only breakfast partnership with the All Blacks and Black Ferns, as well as the only official collectors’ card available each year – as seen on the cover of this issue.

“This year there are 42 unique cards to collect with 17 All Blacks and 17 Black Ferns players.”

Best in season

Winter fruit and vegetables are in great supply in July with cool weather and lower soil temperatures producing the tastiest, sweetest crops. Shoppers this month will be on the look out for vegetables and fruit that provide high levels of immunity support. Kiwifruit and persimmons are still available, as are the ever popular apples and pears.

Plenty of vegetable varieties will keep displays full, particularly brassicas and leafy greens.

Tamarillos

Tamarillos come into the peak of their season during July and August. This is when most growers from across the country are in full production. Early in the season, the fruit does not have the rich red colour that many associate with ripe tamarillos as the trees need colder night temperatures for at least a week to bring in the anthocyanin that produces the red colour in the fruit. Despite this, early fruit are ripe, sweet and full of flavour. What to look for: Look for full colouration (red or golden) on the fruit body up to the stalk. Fruit should be firm and heavy for its size and stems should be black, not green. Ripe tamarillos are fragrant and yield slightly to finger pressure.

Storage/handling: Tamarillos will keep refrigerated for two weeks, or for one week unrefrigerated. Rotate stock frequently and handle them with care to avoid bruising.

Nutrition: Tamarillos are a good source of vitamin A for healthy skin. They are also a good source of vitamin C, which helps the body absorb iron from food.

Navel oranges

The 2023 Navel orange season is looking good at this stage, despite the amount of rain both Northland and Gisborne have had over the summer and autumn months. Overall volume is looking like it might be slightly lower than last year with picking starting in late June.

Mid-July will see good volumes in the market and fruit featuring in stores across the country.

What to look for: Choose oranges with skins that have a fine texture, bright colour and 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, though

they should be kept refrigerated where possible to avoid them drying out. Storage of Navel oranges is best in a 7-8 degree chiller.

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.

Brassicas

Prolonged wet weather in May has caused some issues with broccoli crops this year. Water staining and head rot is present, but is hard to detect at harvest time. The weather has also interrupted planting schedules so expect brassica crops to have a few dips in supply as we head into spring.

What to look for: Choose broccoli with tight green florets and firm stalks. The cut ends of the stalks should be fresh and moist looking. Remember that the stalks are high in nutrition as well, they should be eaten as well as the florets. Cauliflower and cabbage should be firm and tightly closed with no signs of dark spots or softness.

Storage/handling: Where possible, display brassicas in front bins in your produce area. Provided you keep them hydrated and refreshed, they will last out of refrigeration during the cooler months.

Nutrition: Broccoli, cauliflower and cabbage are all good sources of vitamin C, which supports healthy bones, teeth, gums, and skin. They are also all sources of dietary fibre which aids healthy digestion.

“Navel oranges contain good sources of vitamins C and B6 to help support immunity and a healthy metabolism.”

A cerealsy nutty new kid on the block

Mates since ages ago, Scotty and Pic have long been plotting a meet-cute for Blue Frog and Pic’s Peanut Butter, with the resulting collaboration proving a match made in breakfast-heaven in more ways than one.

Crafted from a blend of crispy oats and toasted coconut, infused with Pic’s Smooth Peanut Butter, Blue Frog’s latest Granola is the perfect pick me up for those craving something nutritious, and a little nutty in the morning.

The brainchild of two homegrown brekkie heroes – Scotty ‘Frog’ Baragwanath of Blue Frog and Pic Picot of Pic’s Peanut Butter – the collab celebrates the duo’s number eight wire ingenuity and shared passion in creating good honest food without any of the rubbish, something they’re both completely nuts for.

So set your alarms, the Blue Frog Pic’s Peanut Butter Crunch Granola lands on supermarket shelves nationwide from early July and as they say… the early bird gets the worm!

Blue Frog’s new Pic’s Peanut Butter Crunch Granola

• 50% nuts and seeds (and over 30% peanuts!)

• 1g sugar per serve

• RRP $9.99

“ Blue Frog Pic’s Peanut Butter Crunch Granola lands on supermarket shelves nationwide from early July”

Winter wellness

What’s trending in vitamins, supplements, and natural remedies?

system of healthcare based on naturopathic principles and his work opened the doors to new ways of treating illness and maximising health.

Fast forward to 2023 - and the beliefs Maurice Blackmore held so dearly all that time ago still underpin the very essence of what Blackmores do as a business today.

Blackmores has now developed a range of Vitamin C formulas in

Bio

C® 1000

Support a healthy immune system and recovery for ills and chills this winter with Blackmores Bio C® 1000. Its high potency one-a-day formula is buffered with mineral ascorbates making it gentler on the stomach compared with ascorbic acid alone. It contains Rosehips and Acerola and antioxidant properties to help reduce free radicals formed in the body.

“Blackmores has now developed a range of Vitamin C formulas in its state-of-the art research and production facility that suit different customers and support immune system function.”

Bio C® + Immune Recovery

Blackmores Bio C® + Immune Recovery gives you a boost of vitamin C and a scientifically studied dose of andographis, to support recovery for ills and chills, while supporting the immune system’s defences.

This formula is buffered with mineral ascorbates to give you a vitamin C that’s gentle on the stomach and has added bioflavonoids thought to support the efficacy of vitamin C.

Blackmores

Probiotics + Immune Support

Blackmores Probiotics + Immune Support is formulated based on scientific evidence. This potent, multi-action formula contains five scientifically studied probiotic strains, providing 20 billion good bacteria, plus a prebiotic, vitamin C and zinc, helping to support healthy immune system function and general wellbeing. For orders contact Healthcare Logistics.

Nature’s Way

Nature’s Way were the pioneers of gummie vitamins in the New Zealand market and they are proud of their products.

Senior Brand Manager Tina Adam explains: “We

have R&D teams across New Zealand and Australia and pride ourselves on not only being the first to market with the new trends and ingredients, but also on the integrity of our products. One of our strengths is to bring large health and global trends to the mass market.”

The Nature’s Way brand launched in New Zealand in March 2019 with a range of products across vitamins and super foods. Nature’s Way also owns the Vita Gummies sub brand.

“The gummie vitamin format is especially useful for children, when compliance is as important for parents as the vitamins and minerals our products contain,” explains Adam. “Taste is very important and we believe we have the best tasting Vitamin Gummies.”

She adds: We have the #1 Vitamin Gummie brand in Total Market and #1 Adult Vitamin Gummie brand in Total Market. We have 21 products in this range including five new High Strength range and three Beauty Vitamin Gummies. We also have the #1 Kids Vitamin brand in Total Market – 20 products under this range in the market.”

New from Nature’s Way is a range of High Strength Vitamin Gummies. The first High Strength Vitamin Gummie range in New Zealand bridges the gap between traditional tablets and vitamin gummies and

NZ’s #1

brings new customers into the category by offering products with higher loading of active ingredients.

The premium positioning appeals to consumers and the gummies are larger in size to accommodate increased active ingredients, with improved on pack claims to differentiate from current ranges.

Adam adds: “Natures Way Chewable Gummie format is the largest Brand in Dollars in the Total Chewable Gummie category. Natures Way Chewable Gummies is growing at 7.4% dollar growth % MAT vs year ago to 28/05/2023, which is ahead of the Total Chewable gummie category (+5.7%) and growing even more latest 4 weeks at 27.7% dollar % growth vs year ago.”

*Circana Data MAT to 28/05/2023

New from Radiance

Radiance has the reputation of being one of the key innovators in the vitamin and supplement category.

The team explains: “We’re extra excited about our latest NPD, five new products launched successfully across Grocery and Pharmacy in May 2023. Capturing the latest global trends, NZ consumer needs, whether you’re after stress relief, better sleep, gut health, energy release or to boost your immunity system.

“The sleep category in natural health, vitamins and supplements continues to drive growth, QTR dollar growth +27.5% TKA. Radiance™ Dream Sleep in convenient and good tasting gummie format help calm the mind and relax the body, and contain tart cherry for supporting deep sleep, magnesium for muscle relaxation and the amino acid l-theanine. The energy category continues to present positive growth, MAT dollar growth +10.8% TKA. With YOY growth Radiance™ Energy Gummies were formulated to support optimal energy levels, brain health and mental focus. Formulated with CoffeeFruit Pure®, our delicious tasting Energy Gummies are the next generation energy supplement. An antioxidant powerhouse, coffeefruit is the fruit of the coffee plant and is sustainably sourced as a by-product of coffee manufacture. Vitamin B12 is included in our gummies to support energy production.

“The Stress and Anxiety categories have seen TKA, QTR dollar growth of +28.5% & +24.0% respectively. With this in mind, Radiance™ Good Mood Gummies were launched to assist to support optimism and balance. Specially formulated with Saf’rinside™ scientifically researched saffron, provides standardised levels of saffronal, the active ingredient that supports healthy levels of “feel good” brain chemicals.

category insights

DIETARY SUPPLEMENTS

“The Digestion category continues to report strong growth, against MAT, TKA dollar growth +19.9% also driving strong growth in the QTR +26.1%. With this in mind and on the back of

Radiance™ 100 Billion Probiotic, we’ve launched an entry level Radiance™ 20 Billion Probiotic, with 11 Strains of beneficial bacteria. This provides a multistrain, broad spectrum blend of healthy bacteria to support intestinal health and restore digestive comfort and function.

“To capture the winter ills and chills season, we have recently launched Radiance™ Liposomal Vitamin C Liquid, a high dose Vitamin C, 1000mg daily dose in a convenient bottle. The liposomal technology encapsulates Vitamin C in a lipid-based molecule to allow optimal absorption through the digestive system and into cells for increased immunity. As humans are unable to make Vitamin C a steady intake is required to support a healthy immune response.” radiance.co.nz

Comvita

Kids Soothing

Mānuka Honey Pops

Comvita Kids Soothing Mānuka Honey Pops are an excellent option for kids this winter.

Containing Comvita’s own UMF™ 10+ Mānuka honey, as well as being a Source of Vitamin C, these handy lozenges on a stick are an excellent solution for tickly throats.

Vitamin C works as an antioxidant to protect our bodies from damage, supporting overall immune system health. Getting Vitamin C into children, especially fussy eaters, can be challenging. Containing 62% of the RDI of Vitamin C for children ages 4-6, these are a tasty treat with an added bonus!

Mānuka honey has long been used for sore throats and these Kids Soothing Pops have 5.5% UMF™ 10+ Mānuka honey, providing the benefits that Comvita’s Mānuka has to offer.

With no artificial flavours or colours, these gluten free pops are individually wrapped with 15 pops in a resealable bag, and come in three flavours: Grape, Orange, and Lemon.

They are a great trigger for an impulse purchase, as they are appealing to a wide range of consumers, making them ideal for display at point of purchase. For more information on Comvita Kids Soothing Mānuka honey Pops, or any other products in the Comvita range, please contact Wilsons Consumer products.

Ethics, the smart choice in healthcare with Winter & Pain ranges

Ethics offers shoppers support when they need it the most.

“With cold winter weather settling in, the Ethics range continues to support Winter needs from cold and flu relief, sore throats, chest congestion, blocked nose, headaches and fever,” says David Acott Sales & Marketing Manager at Multichem NZ Ltd.

“With easy to swallow tablets and capsules in our adult’s range, soothing honey and lemon medicated throat lozenges including New Valuepack 32’s, saline nasal spray and a soothing and vaporising chest rub to help you breathe easier for that good night’s rest - Ethics products have you covered this Winter. Look out for the promotional Winter combo packs for even better value, including a digital thermometer combo pack to keep that temperature in check.”

“Winter nasties can also bring you pain, so Ethics also supports your pain management needs for relief of headaches and fever. With ibuprofen in tablet or

liquid capsules, paracetamol tablets in both round shaped and easier to swallow capsule shaped tablets to get you fast relief when you need it most.”

Now available in New Paracetamol & Ibuprofen 20’s combined in one caplet for double action pain relief.

“Trust Ethics this Winter with a wide quality range to choose from and value for money, they are perfect to drive sales this Winter season and all year round,” says Acott.

Ethics, the smart choice - high quality at a great price! For more information contact your Storelink Territory Manager or Multichem on 09 488 0330.

participating clients, plus a table of the freshest data available at time

reports, please contact trubanowski@fmcgbusiness.co.nz

Better baby products

Natural choices and convenience are top of mind for shoppers in the baby category.

Did you know that in the year ended December 2022, 58,887 live births were registered in New Zealand? And it seems mothers and fathers are having children later – the average age is now 30.*

The vast majority of babies in the Growing Up in New Zealand study were breastfed for at least some time. The study found exclusive breastfeeding generally stopped at around four months.

By nine months of age, the babies had been introduced to a wide range of solid foods, most commonly baby rice, fruit and vegetables.

Meanwhile at our supermarkets, shoppers are continuing to look for quality, ease and convenience when they’re making purchase decisions in the baby products category.

We’re also seeing parents continue to look for organic choices in baby food, with healthy snacks seeing strong growth as parents seek out easy, on-the-go options for their children.

There is a trend towards nappy pants instead of open nappies, showing the strong demand for convenient options from the supermarket.

When it comes to soaps, shampoos and skincare, many shoppers reach for gentle, natural baby care products.

*Source: Growing up in NZ

The gentlest ingredients for the softest skin

For 30 years, ecostore has pioneered the way in creating high-quality and sustainable home, body, and baby care products. Ecostore has grown alongside generations of Kiwis who love their products and share their values. As a Certified B Corporation®, they are truly committed to making a positive impact on people and the environment.

Global demand for cruelty-free and plant-based products is growing rapidly. The oat milk market alone is expected to be worth US$4.21 billion by 2027**. Ecostore’s Baby Bath & Shampoo range contributes over 25% of segment value and is growing at 5.5% vs YA* as more parents shift to safer, more natural products.

In response to feedback from Kiwi parents, ecostore has developed a new Oat Milk Baby Soap to help meet this demand. Enriched with ultranourishing New Zealand oat milk, fragrance-free, and dermatologically tested for sensitive skin, ecostore Oat Milk Baby Soap is packed with the best ingredients nature has to offer. This soap is gentle on babies’ delicate skin, cruelty-free, and plant-based; meeting the needs of families wanting safe, gentle, and more natural ways to care for their baby’s skin.

Ecostore believes that creating a safer home, a healthier world, and a better tomorrow should be easy for everyone. That’s why their new Oat Milk Baby Soap comes in plastic-free packaging, keeping in mind the homes of future generations while caring for their delicate skin.

Ecostore’s new Oat Milk Baby Soap is available now.

*Source: Circana Grocery Data MAT to 11/06/2023.

**Source: Oat Milk Market Report 2023. The Business Research Company. For more information on the full range of ecostore products visit ecostore.com and join them on Facebook and Instagram.

“ecostore Oat Milk Baby Soap is packed with the best ingredients nature has to offer.”

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

Biscuits & crackers

What’s trending in the biscuits and crackers aisles in our supermarkets?

Ever popular biscuits and crackers are still top of the shopping list and performing well across all segments, according to the latest insights from Circana. From indulgent chocolate-covered treats to iconic biscuits and innovative, better-for-you crackers, you will find something for all tastes and ages in our supermarkets.

Biscuits and crackers producer The Arnott’s Group (TAG) has resumed manufacturing in New Zealand, bringing a welcome boost to the local economy and exciting additions to its iconic snacking range. TAG’s new multi-million-dollar, 4000sqm manufacturing facility in Avondale, Auckland, has been designed as an innovation hub for Arnott’s sweet and savoury biscuits across the ANZ region and to accommodate further growth and expansion of the 180 degrees cracker brand, acquired by the business in May 2021. Arnott’s Group CEO, George Zoghbi said the new facility signals TAG’s commitment to ongoing investment in New Zealand, enhancing localised supply chains and strengthening manufacturing, technology, capability and skills.

& CRACKERS

“The Avondale facility has been designed to unlock world-class innovation and flexibility for the broader Arnott’s network and will allow us to increase our locally made Arnott’s range,” Zoghbi said.

“The integration of 180 degrees in 2021 and the subsequent construction of Avondale, have meant greater speed and agility within the New Zealand arm of our 157-year-old business, that will allow us to unlock new products and reach new consumers.”

Mike Cullerne, TAG’s Country Director NZ, said: “Our fast and flexible facility in Avondale will support further expansion of the premium 180 degrees brand both domestically and in Australia and allow us to develop new Arnott’s biscuits for New Zealand customers to enjoy. Last year alone, New Zealanders consumed over 30 million 180 degrees crackers – an astounding level of support for this locally made brand.”

The inaugural Arnott’s products baked at the Avondale facility are Arnott’s Shortbread Bites, a delicious, new range of premium biscuits made with fruit from Barkers of Geraldine. The melt-in-your-mouth shortbread range (on shelf July 2023) are lovingly batch baked, with pure NZ butter and quintessentially NZ flavours. There are three varieties:

• Black Doris Plum made with Black Doris plum puree plus decadent dark chocolate chips.

• Feijoa made with sweet feijoa puree plus poppy seeds.

• Mixed Berries made with boysenberry & blackcurrant puree plus decadent white chocolate chips.

We talked to local suppliers to find out what’s new.

Source: Circana MarketEdge Grocery Data MAT to 21/05/23 (Selected segments)

Keeping it real with Cookie Time!

From day one, homestyle taste and generous chunks of real chocolate have formed the heart of the Cookie Time offer. Now in its 41st year of business, this iconic family owned company is celebrating with new innovations and accolades, all reflecting its commitment to baking with a passion.

The Apple Crumble Custard Cookie is a new twist on a classic Kiwi dessert. With apple pieces, crumble, chocolate chunks and a scrumptious custard flavoured top. Made with real chocolate and real ingredients, batch-baked in traditional rack ovens.

The team explains: “There’s also a new 7-pack edition of our famous Chocolate Fix. With 40% dark chocolate, it’s no wonder this is the cookie that thinks it’s a chocolate bar. We’ve also broken into a new treat category with ‘cookies coolest partner’, aka two frozen cookie sandwich SKUs which have become instant best-sellers.

“We’re thrilled to be New Zealand’s Most Trusted Cookies brand for the third year running. And to take a giant leap up the overall Most Trusted Brands rankings – to #10, from #20 last year.”

Cookie Time is proud to be New Zealand made, owned and loved. In the early days, Cookie Time cookies were produced with true Kiwi ingenuity, with chocolate cut into chunky pieces on a bread slicer and cookie dough measured out with ice cream scoops. Technology may have changed but Cookie Time remains dedicated to baking the best in homestyle comfort.

For more information please contact Anthony Naylor, Cookie Time Limited Channel Manager Grocery, 03 349 6161.

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

“The Apple Crumble Custard Cookie is a new twist on a classic Kiwi dessert.”

New Nibblish Pure Fruit Swirls

This month’s finalist for the FMCG Business Product of the Year Award is Nibblish Pure Fruit Swirls - a new healthy lunchbox hack!

Shoppers can say hello to a convenient fruit snack with no added sugar, syrups, colourings, preservatives, or other nasties. Nibblish Pure Fruit Swirls are made from 100% fruit, transformed into delicious fruit swirls, with three tasty flavours: Raspberry, Mango, and Strawberry – all deliciously infused with Kiwifruit and Apple too!

Gluten-free, vegan and vegetarian friendly, and sustainably sourced, Nibblish Pure Fruit Swirls are transforming lunchbox snacks for Kiwi kids.

Plus, with every packet of Nibblish Pure Fruit Swirls, kids receive an Explorer collector card, which is fun and engaging for children to learn, interact and play with. If all 40 Explorer cards are found, winners receive an epic Nibblish prize pack, which includes a custom explorer suitcase, the Kids Pure Fruit Swirls range, a compass, binoculars, custom Nibblish tee and a bucket hat.

“Our news Kids Pure Fruit Swirls are designed specifically for kids’ lunchboxes to provide a pure fruit option without added sugar or chemicals. We also have a Gently Baked Fruit range, our Mango is famous, and all products have no added sugar, sulphites or preservatives,” explains the Nibblish team.

“We’re adding a new variant to our Gently Baked Fruit core range that is a perfect on the go blend of Cranberries, Blueberries, Blackcurrants and Strawberries.” Find Nibblish Pure Fruit Swirls at nibblish.co.nz or at New World and PAK’nSAVE stores

FMCG BUSINESS Product Of The Year

FMCGPRODUCT OF THEYEAR • 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 2023.

To find out more on how to enter please email: trubanowski@fmcgbusiness.co.nz

“Shoppers can say hello to a convenient fruit snack with no added sugar, syrups, colourings, preservatives, or other nasties.”

Warkworth welcomes new

new positions, while offering customers a spacious and contemporary shopping experience.

Spanning a site of 5,300 square metres, PAK’nSAVE Warkworth on the corner of Hudson Road and State Highway 1 in town, is the 58th PAK’nSAVE location in New Zealand.

Foodstuffs North Island Chief Executive, Chris Quin said: “PAK’nSAVE Warkworth offers a great shopping experience, and it also shows our community support and sustainability. The store’s design incorporates the latest generation format, featuring ample space for customers and efficient behind-the-scenes operations, all designed to keep costs down. There’s lots of natural light coming into the store, enhancing the fresh food offerings in produce, seafood, and butchery. There’ll also soon be a convenient drive-through click-and-collect area, allowing customers to schedule their collection and have their groceries delivered straight to their car.”

PAK’nSAVE Warkworth takes pride in supporting local suppliers by stocking quality local produce to deliver the best prices for its customers. Examples include the store having relationships with local avocado growers in Tapora, mandarin growers in Matakana, and strawberry growers from Omaha. By sourcing locally, PAK’nSAVE Warkworth actively contributes to the community while keeping costs down for customers.

A commitment to sustainability is at the core of PAK’nSAVE’s values and PAK’nSAVE Warkworth is no exception. The store will employ various strategies to minimise food waste. The store also employs energyefficient upright fridges and freezers, while recyclables such as plastics, tins, and glass are sorted and processed accordingly. Cardboard boxes and soft plastics will be baled and sent for recycling, and a soft plastic recycling system will be available to the public.

Owner Operator Anna Carmichael brings a wealth of experience to PAK’nSAVE Warkworth. She said: “I’m excited and proud to be bringing PAK’nSAVE’s low prices to Warkworth. Having been a part of the community for 10 years, Warkworth’s such a special place with its unique mix of urban dwellers and farming communities. I really appreciate all the support I’ve received along the way and look forward to welcoming locals and visitors into store.”

PAK’nSAVE Warkworth in numbers

• $46 million investment in the local community

• 5,300sqm site

• 149 roles created

• 275 car parks including dedicated spaces for parents with children

• Nine team member operated checkouts

• 14 self-checkouts

The PAK’nSAVE Warkworth site spans 5,300 square metres

Owner Operators Anna and Tim Carmichael on opening day

The PAK’nSAVE Warkworth team

No more single-use plastic produce bags

From 01 July 2023, singleuse plastic produce bags will be removed from all supermarkets and grocery stores. This is part of a wider phase out by the New Zealand Government on single-use plastics and includes items like plastic straws and containers, saving around 150 million single-use plastic produce bags from going to landfill.

Foodstuffs, the 100% Kiwi owned co-operatives behind PAK’nSAVE, New World and Four Square supermarkets, welcomes the change, with Foodstuffs Sustainable Packaging Manager, Debra Goulding saying it’s a positive move for New Zealand.

“Kiwis have adapted well to bringing in their shopping bags to store and we’re confident we can all do the same with bringing our own reusable produce bags from home too. Our teams have been working hard behind the scenes to make the transition easier for Kiwis. We’ve focused on getting the right systems in place, having our people trained and providing instore signage for customers.”

Loose fruit and vegetables are sold by weight and its vitally important Foodstuffs customers only pay for the weight of their produce, and not the bag they place it in. Instore and check-out teams have been putting up signage to help customers take the right steps to ensure they only pay for the produce they’ve selected. Customers are encouraged to look out for step-by-step instructions in the produce department and around stores. If they are unsure or need help, they should ask any of the in-store team.

Debra’s top five tips

• Store a couple of produce bags inside the shopping bags you bring from home or use your grocery bags to hold produce until you’re ready to go through the checkout.

• Items like broccoli, cauliflower, or anything with a protective layer like corn can ride in your trolley or basket in the nude, simply give it a wash when you get home.

• Make sure you don’t pay for the weight of your produce bag. There’ll be signage up in store but when you’re at the checkout, take your produce out of the bag, put it on the scales and weigh your items.

• Pop a basket or small cardboard box in your trolley to hold your produce and separate these items from the rest of your groceries

• Use sturdier items in your shop like cereal boxes to create a barrier between your produce and everything else in your trolley

“To support the change, we’ll be providing paper bags in a variety of sizes across PAK’nSAVE, New World, Four Square, Raeward Fresh and On the Spot stores for a limited time while Kiwis get into the habit of bringing their own reusable produce bags. We’ll also have a variety of reusable bags available for purchase instore for customers who forget to bring one from home. The best thing to do is to bring reusable bags from home as it’s the most environmentally friendly option,” she says.

Foodstuffs is committed to improving sustainability and is working hard to reduce the environmental impact of packaging across its stores. As one of the first retailers in New Zealand to sign up to the New Zealand Plastic Packaging Declaration, the co-op is working towards 100% reusable, recyclable or compostable retail and private label brand packing by 2025. This commitment applies to all packaging types including plastic, fibre, glass and metal.

Packaging serves a role in the food and grocery sector to protect goods, extend shelf-life, reduce food waste and communicate information to customers. But it’s important packaging is designed with ‘end-of-life’ as well as the New Zealand recycling system in mind. Foodstuffs is focused on removing and reducing unnecessary packaging and investing in circular design, to make sure resources can be reused.

“As one of the first retailers in New Zealand to sign up to the New Zealand Plastic Packaging Declaration, the co-op is working towards 100% reusable, recyclable or compostable retail and private label brand packing by 2025.”

Visionwest and Foodstuffs open social supermarket in Auckland

West Auckland-based community trust Visionwest, and Foodstuffs North Island are proud to announce their partnership in bringing the first of its kind social supermarket for Auckland. This innovative collaboration aims to address food insecurity and provide affordable, quality food options to the local community of West Auckland.

Known as Manaaki Kai, the new social supermarket is an extension of Visionwest’s longstanding commitment to supporting individuals and families who are finding things tough. Visionwest has been operating a food bank service for over 30 years, assisting approximately 400 whānau each week. Visionwest supports around 60,000 people a year and has a large team who provide a wide range of wraparound services including budgeting and counselling.

Social supermarkets are a new approach to providing food support in New Zealand, enabling individuals experiencing food insecurity to select their own groceries in a supermarket-style environment, providing dignity

of choice. Unlike traditional food parcels that may not cater to specific dietary, cultural, and personal preferences, social supermarkets offer a wide range of food and grocery products. Through a points system, individuals can choose the items that best meet their needs, ensuring a personalised and respectful experience.

Foodstuffs North Island, as part of its ‘Here for NZ’ initiative, has made a promise to ensure all New Zealanders have access to healthy and affordable food, with each New World and PAK’nSAVE partnering with a local community partner to achieve this. Following the introduction of a first of its kind social supermarket in collaboration with Wellington City Mission two years ago, Foodstuffs has continued to expand its social supermarket footprint. The addition of Manaaki Kai in Auckland marks the sixth social supermarket under its partnership umbrella.

PAK’nSAVE Lincoln Road are proud to be the buddy store for Visionwest, ensuring ongoing support and training.

Best practice methods = efficient and sustainable packaging solutions

The Packaging Forum’s vision that all packaging will be reusable, refillable, recyclable, or compostable requires a collaborative approach leveraging global partnerships to improve packaging design and develop efficient and sustainable end of life solutions.

The Forum has been working with UK-based RECOUP for some time, and recently became the first Southern Hemisphere organisation to be welcomed into EXPRA - Extended Producer Responsibility Alliance. Based in Brussels, EXPRA brings together 32 not-for-profit packaging and packaging waste recovery and recycling organisations from 30 countries.

“We are delighted to be part of EXPRA to contribute to the global discussion on Extended Producer Responsibility and learn from best practice. Our focus is on developing a circular economy for packaging in New Zealand and we need EPR systems in place to achieve this. We can learn from our peers in other markets to see what has worked for them when designing EPR systems, and by sharing key insights, technological developments, data, and research,” says CEO, Rob Langford.

“Utilising global experiences enhances what we’re working on here in New Zealand – in saying that we know that there is a lot of international interest in what we are doing, especially regarding our Soft Plastic Recycling Scheme.”

“Soft Plastics is growing at pace with more drop off locations and increased membership. It’s important to remember that the collection and recycling service is 100% funded by almost two hundred members, with members fees allowing us to invest in expansion, support our processing partners and invest in research into new soft plastic processing solutions.

“We started working with Future Post in 2018 when they introduced one production line in Auckland and soon there will be four production lines across their two sites with a second plant opening in the South Island in July. We also supply saveBOARD’s Hamilton plant with our soft plastic and it’s great to see that they have received funding support from Australian Federal and State Governments to introduce plants in Sydney, Melbourne and the Gold Coast,” says Langford. www.packagingforum.org.nz

Packaging Forum CEO Rob Langford at saveBOARD’s Hamilton plant.

Willa Hand, Head of Membership Excellence for Foodstuffs North Island, Nathan May GM Community Services at Visionwest and Chris Quin, Chief Executive of Foodstuffs North Island.

Worldline – the leader in New Zealand payments

Many agree that New Zealand is a global leader in the paytech space. Much of the credit for that leadership goes to Worldline, the company that introduced Eftpos to the country in the 1980s and remains at the forefront of electronic payments today.

Worldline, formerly Paymark, first processed electronic payments here in 1989, which proved hugely popular with consumers and set New Zealand on the path to becoming a paytech world leader.

Originally, the Eftpos system was set up to reduce the costs for banks by reducing the handling of cash. But it also reduced fraud and made transactions more convenient, avoiding the need for people to withdraw and carry money, leading New Zealand to become a largely cashless society.

It’s this convenience which has seen over 80,000 Kiwi businesses trust Worldline with their transactions, equating to over 70% of all digital in-store payments, and over 25 billion transactions in its

34-year history. It’s not by accident they are the leading payments network in New Zealand.

The transaction process of money taken from our account and transferred to a retailer is largely invisible and not something we see directly. We trust that it happens quickly, securely and efficiently behind the scenes. Worldline’s systems mean each transaction is highly encrypted, processed at top speed using 3DES technology, and delivered to your bank account.

Worldline has multiple layers of redundancy across systems and data centres, and this core functionality enables them to keep going.

Worldline’s payment network in New Zealand was operating 100% of the time in 2022, meaning customers and retailers could keep shopping and selling 24/7/365.

When you are in a busy supermarket during the Christmas period or simply doing your weekly shopping, the last thing you want is for

the Eftpos system to be down. Technology issues aren’t something that happen every day, but they can and do happen and the last thing you want is to lose that trust in the payment network you are using.

In addition to running New Zealand’s Eftpos system for 34 years, Worldline processes other card transactions, including Visa, MasterCard and American Express, for New Zealand’s banks and merchants.

As New Zealand’s leading paytech, they specialise in payment solutions that help businesses grow – in-store, online and via mobile. They provide digital payment solutions for New Zealand businesses who need safe and secure payments, in turn giving Kiwi shoppers seamless payment options.

Worldline’s Eftpos network gives their customers access to real-time transactions to track their revenue, sales to the minute and insights, on any device, at any time of the day. Empowering all Kiwi businesses to make better business decisions with powerful performance reports.

Not all payment networks in New Zealand are the same. If you want to work with a company you can trust to process your transactions safely, securely and on time, talk to New Zealand’s most experienced paytech Worldline.

For more information visit worldline.co.nz

We bring all the payment solutions your business needs to succeed. Payments to grow your world.

“Worldline’s systems mean each transaction is highly encrypted, processed at top speed using 3DES technology, and delivered to your bank account.”

A call to action

Get the ‘digital twin’ for all your products accurate, comprehensive and ‘in-sync’ with what is on-shelf. Images, allergens, ingredients and claims need to be right. Products and product packaging change all the time: ingredients, source of supply, claims, packaging materials. And some of these changes are required by legislation or changing food standards (country of origin statements, simplified allergen statements being topical examples).

As you know, we cannot (and do not want to) mislead customers.

The Fair Trading Act and the Consumer Guarantees Act are designed to protect consumers in New Zealand. The Fair Trading Act protects consumers against being misled or treated unfairly by traders or shops. The Act prohibits misleading and deceptive conduct, unsubstantiated claims, and false representations, whereas the Consumer Guarantees Act is a series of “guarantees” relating to goods and services, after sale. In essence, both acts work to help customers get what they pay for or think they have paid for.

Online sales (click & collect, click & deliver) are a very significant channel for food and grocery now. Shoppers rely on information presented online when making purchasing decisions.

Countdown indicates that digital channels currently generate or influence a total of about 25% of their business (including ‘research online buy in store’ behaviour). Research indicates that about 75% of online shoppers rely on product photography when

deciding to purchase a product and of those who do complete the purchase, 64% say they will return items because of a mismatch in product information.

On-shelf vs online mismatch

In-store audits run by GS1 have revealed significant differences between on-shelf and online presentation of products. Apart from obvious ethical and legal concerns, such a mismatch sets both retailer and supplier up for missed sales and disgruntled consumers. And, of course, an undeclared allergen could lead to much worse. Many consumers plan their shop and check product details online before going into store to purchase - and they have an expectation that what they see online will be what they pick up in store.

What you must do

Retailers and other channel partners are not mindreaders – they do not know when a product has changed. Suppliers and/or importers need to take action and communicate if ingredients, allergens, packaging art, claims or certifications are changed. The ‘digital twin’ of products needs to be updated so that retailers can present the correct information to consumers. And any change will likely require new product photography.

There are also times when a product is materially changed enough to require a changed Global Trade Item Number (GTIN, the ‘barcode number’) to allow the product to be adequately differentiated from different variants throughout the supply chain. There are easy-to-use global rules for when a new GTIN needs to be used (see https://www.gs1.org/1/ gtinrules/en/decision-support).

How do changes get made?

Most retailers have processes to assist with updating or loading ‘digital twin’ content.

However, an easy model that that is worthwhile considering is via GS1 NZ. Being industry owned, we have a useful and cost-effective service to make updates easy and digital twin data flows directly to retailers such as Foodstuffs and Countdown automatically from our ‘OnPack’ database via application programming interfaces (APIs) or the National Product Catalogue (‘publish once to many’). And it is worthwhile knowing that the GS1 OnPack database is also heavily used by numerous others (including government agencies for research and to assess trends in industry initiatives).

As an industry, we should all have a keen interest in ensuring everybody - and especially consumers - see good, accurate, comprehensive and ‘in-sync’ digital twins for all products.

Let’s ensure we’re doing this right!

Dr Peter Stevens CEO, GS1 NZ

Shoppers rely on information presented online when making purchasing decisions.

What’s out there?

Last month I asked ChatGPT what we could look forward to in the future realm of AI in supermarkets. The logical follow-up to this has been to see how much of this future is here already. It turns out that there is a lot going on internationally. Here are six of the more common areas of innovation unfolding…

Just walk out

First introduced a few years ago, Amazon Go’s concept of cashierless shopping sought to minimise the transaction part of shopping. It removed queues and encouraged the shopper with the sense that they didn’t have to pay.

This concept has also been tried by other supermarkets such as Albert Heijn in The Netherlands and convenience store chain Zaitt in Brazil.

In the UK, Sainsbury’s SmartShop is a halfway model where shoppers pick up a hand-held device when they enter and scan then pay for their own items without the need for queuing.

Digitalised shopping carts

While some shopping carts still struggle to stay straight, and some can’t find their way home, others are getting very clever.

Smart carts are being used to deliver advertising, provide product information and enable checking out.

For example, in Israel, Shopic carts allow product scanning and check out, and they also guide people to products via information screens.

Italian chain Co-op have their “supermarket of the future”, a similar screen-based interaction platform on wheels.

In Brazil, a promotional campaign for Hellman’s “Recipe Carts” guided shoppers around to put ingredients together for new mayonnaise-based recipes. This delivered a 70% rise in sales.

Bridge online & offline

The blurring of online searching and offline shopping is an emerging trend. Whether it is phone-based “Boundaryless Retail” at JC.com in China, or in-store information kiosks in Waitrose, or QR-code enabled smart packaging, brands and retailers are making things more engaging for shoppers. Some of the more common examples of this involves providing product information such as nutritional value, or sourcing information, or advertising and promotional prompts.

Enable voice ordering

The American Whole Foods shopper experience is being enhanced by owner Amazon’s voice-activated digital assistant Alexa. A similar innovation is found with Carrefour in France supported by Google smart speakers and mobile services.

With these systems voice commands are picked up by AI and machine learning to enable supermarket shopping. The shopper’s spoken instructions are acted on with “speak and collect” or deliver to home options. All you have to do is ask the avatar to “buy some camembert” and it will know your preferred brand and product.

Personalisation

With digital connections being made between the shopper, store environment, products and machine learning, the elements are in place to see a steady evolution of personalisation. This can take different forms such as personalised promotional offers, coupons, new product recommendations, or supporting information around a shopper brief such as “help me put together a lovely platter of hors d’oeuvres”, or diet-based recommendations.

Automated tasks

Another trend with clever shopping technology taking shape is the use of robots to improve operational efficiency. In the US, Walmart and Albertsons are employing robots to a range of tasks. These include cleaning, unloading trucks, scanning boxes, monitoring inventory, and automate ordering. Robots are also being used to optimise shelves with 3-D cameras that can guide re-stocking. These innovations certainly have the power to enhance the experience for shoppers, and they can improve the sales and marketing potential for brands. However, it is not clear when we will start to see them arrive here in New Zealand. Maybe one day when our marketplace becomes more competitive?

Lew Bentley Head of Strategy at Shopper Marketing Agency energi

In Israel, Shopic carts allow product scanning and check out, and they also guide people to products via information screens.

Industry stronger with shared vision

The food and grocery industry’s future is bright and full of opportunity - though, as always, there are challenges. Direction, focus, and shared horizons will help ensure the industry meets those challenges, makes the most of opportunities, and benefits from sustainable growth.

One imperative is to have a regulatory and policy environment that works with us, and that is where the New Zealand Food and Grocery Council (NZFGC) is doing vital work, advocating for our manufacturers and suppliers and with the thousands of people who contribute along every link in the supply chain.

Another imperative is that the sector is kept informed with quality information on consumer insights, market and industry trends, industry innovations and opportunities, and inspirational stories of what industry leaders are achieving.

Those leaders may be global brands, or they may be the thousands of local small and medium, mum and dad companies, and even start-ups, which all have a valuable story to tell.

To help tell those stories, NZFGC is partnering with ASN Media to produce an online series, called ‘Shared Horizons’, where food and grocery manufacturers tell their stories, share initiatives, and help connect and inform members, policymakers, and the wider sector community.

ASN is a global content creation and engagement company based in Christchurch and has a strong track record in providing sector-specific online video content to industry. Their work has included making quality, informative and inspirational programmes for the Australian Food and Grocery Council and Food

Industry Asia, as well as organisations in other sectors. Shared Horizons will showcase the depth, diversity, and ingenuity of the New Zealand food and grocery industry, while addressing the challenges and opportunities that lie ahead for it.

Themes will include the realities that affect everyone across the industry - food security and waste, packaging and the circular economy, skills and education, and reformulation and innovation.

There will be feature interviews with industry leaders and key stakeholders, news reports, and sponsored editorial profiles of prominent organisations in the industry.

These will enable our members to tell their stories and share their passion, innovation, and the challenges they face and how they’re responding to them.

NZFGC is the voice for the industry, and with objective documentary-style storytelling we will be able to share our shared horizon with government, retailers, local councils, supply chain stakeholders and the public to show how we’re grappling with those challenges to deliver better outcomes for consumers and for the environment.

Shared Horizons will be launched at this year’s NZFGC Annual Conference in Sydney at the Hilton from November 1 to 3, and a powerful digital marketing campaign for the series will launch online at the same time.

The food and grocery sector has met many challenges over the years and we know we are stronger together. With a shared vision we can embrace the opportunities that the future offers, responsibly, sustainably and with a shared voice.

“Shared Horizons will be launched at this year’s NZFGC Annual Conference in Sydney”

Employment Law changes on the horizon

Significant changes are on the horizon for Employment Law. The first change involves extending the limitation period for an employee to raise a personal grievance for sexual harassment. The Employment Relations (Extended Time for Personal Grievance for Sexual Harassment)

Amendment Bill was passed on 7 June 2023 and came into force on 8 June 2023. The second change, the Crimes (Theft by Employer) Amendment Bill, concerns the criminalisation of wage theft of employers and has now been formally introduced to the house for debate.

Employment Relations (Extended Time for Personal Grievance for Sexual Harassment) Amendment Bill

Under the new Amendment Bill, the limitation period for an employee to raise a personal grievance for sexual harassment has been extended from 90 days to 12 months. The 90-day limitation continues to apply for all other personal grievances.

The amendment intends to improve the process for sexual harassment victims by providing more time for them to consider whether to bring a personal grievance. Section 114 of the Employment Relations Act, which provides for an employee’s notification period, amends the definition of an “employees notification period” to mean, in regards to a sexual harassment allegation an employee, “…. the period of 12 months beginning with the date on which the action alleged to amount to the personal grievance occurred or came to the notice of the employee, whichever is later.”

Retrospectivity of the Bill was clarified by the Select Committee’s Final Report, which outlined that the enlarged 12-month period only applies where the alleged sexual harassment occurred or came to notice of the employee on or after the amendment comes into force. Essentially, existing sexual harassment claims will be held to the previous 90-day period.

Employment Agreements should be updated to align with the ERA’s “plain language” explanation requirement, including specific reference to the 12-month period for raising a personal grievance on the grounds of sexual harassment.

Further, employers should revise their workplace policies and notify employees of the extension of time for raising a personal grievance for sexual harassment. It would also be suitable for employers to remind their employees of workplace expectations and values.

Crimes (Theft by Employer) Amendment Bill

The second Bill of note is the proposal to clarify that non-payment of an employee’s wages is considered theft under the Crimes Act 1961.

The Bill seeks to impose stricter (and clearer) consequences on employers who intentionally do not pay wages owed to employees. The Bill’s policy statement provides that present provisions of theft by a person in a special relationship are insufficient to deal with employer wage theft. Wage theft by employers can include unlawful withholding of wages, salaries and other monetary entitlements.

The Amendment Bill proposes to insert a new section (20AA) to the Crimes Act 1961, which outlines that where an employer intentionally fails to pay an employee their entitlements under their employment agreement or otherwise required by law (i.e. Holidays Act 2003, Minimum Wages Act 1983 or Wage Protection Act 1983) that is an offence which will attract a penalty of imprisonment not exceeding one year and/or a fine not exceeding $5000 if the employer is an individual, or a fine not exceeding $30,000 if the employer is an entity. Failure to pay an employee their wages is also a breach of the Employment Relations Act 2000.

The Bill has yet to have its first reading but has been formally introduced to the House. While the Bill is in the early stages, the move to criminalize the breach is important to note for employers.

Natalie Casey Wyness Law Clerk www.swlegal.co.nz

Dylan Pine Barrister and Associate www.swlegal.co.nz

Fine Food highlights

Fine Food New Zealand returned to the Auckland Showgrounds from June 25-27 – offering the latest in food, drinks and industry equipment. The event featured over 290 exhibitors, networking opportunities, trade only deals and free seminars. For more information visit www.finefoodnz.co.nz.

Join us at the FMCG Business Innovation & Marketing Summit!

After three very successful editions, the FMCG Business Innovation & Marketing Summit returns on 13 September 2023 to the Ellerslie Events Centre in Auckland.

Join us at this marketing masterclass, jam-packed with education, stimulation and curated sessions that will help your business thrive in New Zealand’s fastmoving grocery and retail sectors.

The Summit will include presentations from a range of industry experts, Q&A panel discussions and valuable networking opportunities to connect with other FMCG and marketing professionals.

Mark your diary for 13th September, when the Summit returns with an innovation theme and a stellar line-up of new presenters who will share valuable insights to inspire your marketing approach.

Topics will include consumer insights, research from Circana, digital marketing, creative product designs and innovations… and much more. The programme includes morning tea, lunch and networking drinks.

Business owners, marketing and brand managers can look forward to inspiration, new ideas, valuable learnings and new connections.

Don’t miss out on this series of curated sessions that will keep your business ahead of the game. Here is a first sneak preview of some of the speakers you will meet at the Summit.

Craig Irwin

Managing

Director –

Circana

The Summit programme kicks off with in-depth consumer and industry intelligence from Circana.

Raewyn Bleakley

Chief Executive, New Zealand Food and Grocery Council

Raewyn shares her insights, covering the State of the Industry and latest updates for marketeers.

Matt Grantham

Creative Director, Onfire Design

Discover what it takes to stand out from the crowd and create award-winning packaging and product designs.

Registrations for the Summit are now open and sponsorship opportunities are still available. All sponsor packages are supported with advertising through FMCG Business.

For more information visit www.fmcgsummit.co.nz

“Mark your diary for 13th September, when the Summit returns with an innovation theme”

13 September 2023

Ellerslie Event Centre, Auckland

The essential summit for FMCG marketers and business owners looking for innovative strategies , insider tips and exclusive networking to give them the competitive advantage

What’s on in 2023

JULY

23-26 FOODPRO

Food manufacturing and processing exhibition

Melbourne, Australia

https://foodproexh.com/

27-30 THE FOOD SHOW

Auckland Showgrounds

Auckland, NZ

www.foodshow.co.nz

AUGUST

18-19 BEERVANA

Wellington, NZ

www.beervana.co.nz

SEPTEMBER

6-8 ASIA FRUIT LOGISTICA

AsiaWorld Expo

Hong Kong

https://www.asiafruitlogistica.com/

9-10 NZ CHOCOLATE & COFFEE FESTIVAL

Auckland, NZ

https://chocolatecoffeefestival.nz/

11-14 FINE FOOD AUSTRALIA

Leading food industry B2B show Sydney, Australia

https://finefoodaustralia.com.au/

13 FMCG BUSINESS MARKETING & INNOVATION SUMMIT

Auckland, NZ www.fmcgsummit.co.nz

19-23 FOODTECH PACKTECH

Auckland, NZ

https://www.foodtechpacktech.co.nz/

OCTOBER

7-11 ANUGA

Cologne, Germany www.anuga.com/fair/anuga/anuga-home/

14 GROCERY CHARITY BALL

Cordis Hotel

Auckland, NZ www.grocerycharityball.org

19 NZ FOOD AWARDS

Powered by Massey University www.foodawards.co.nz

19-20 CONVENIENCE & IMPULSE EXPO 2023

ICC Sydney

19 October 11am-5pm

20 October 12pm-4pm candiexpo.com.au

19-20 C&I INDUSTRY SYMPOSIUM

19 October 9-11am

20 October 10am-12pm candiexpo.com.au

2024

MAY

8-9 CONVENIENCE & IMPULSE

NZ EXPO 2024

The Cloud, Auckland candiexpo.co.nz

The NZ Chocolate & Coffee Festival returns to Auckland in September. The C&I Expo will be held in Sydney in October.

Out & About

Taylor Leabourn, winner of the 2023 Pukekohe Young Grower of the Year Competition.

The Coca-Cola Europacific Partners NZ team celebrated the history of its facility in Christchurch, which has been in operation for 50 years.

PAK’nSAVE is helping customers with the Savey Mealmaker, an easy-to-use webtool that uses the latest AI innovation to create recipes with food they already have at home.

Grace Rehu, a Leading Hand at T&G Global in Hawke’s Bay, took home the 2023 Ahuwhenua Young Māori Grower Award.

The Chelsea Sugar Refinery can now reuse energy normally lost through the evaporation process with new MVR technology. (L to R) Bernard Duignan (CEO New Zealand Sugar Company), Kelvin Davis (MP for Te Tai Tokerau), Dr Megan Woods (Minister of Energy and Resources), Chris Hipkins (Prime Minister of New Zealand), Shanan Halbert (MP for Northcote).

Fresh flowers for sale at Four Square St Heliers in Auckland.

SNAP WIN! AND

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 an Exper+ise by essano haircare pack (worth RRP $312), designed for a range of hair health concerns that stem from the scalp to deliver salon-quality results every day, at affordable prices. Meticulously crafted using cutting-edge technology, the range offers four targeted clean beauty haircare regimes:

HYDRATION + SHINE , STRENGTH + REPAIR , GROWTH + VOLUME and DETOX + EXFOLIATE.

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

Satnam and Randeep Kang at the opening of their new Four Square in Te Kowhai. Kerry, a world leading provider of taste and nutrition solutions, opened a new 50,000m2 manufacturing facility in Karawang, West Java, Indonesia.

The New World Wine Awards are underway, with Jen Parr and Sam Kim as Co-Chairs of the judging team.

New Zealand cricket heavyweights Todd Astle (Black Caps) and Amy Satterthwaite MNZM (former NZ White Fern) dropped into New World Northwood to celebrate the recent launch of the store’s initiative to encourage more school kids to get into cricket.

The Zero Zone

According to Stats NZ’s alcohol data for 2022, the average number of standard drinks per person available for consumption was 1.96 drinks per day. This reflects a 1% decrease from the previous year and is the lowest recorded figure in the past 15 years.

Many consumers are adopting healthier lifestyle choices as a result of educational campaigns such as Dry July and responsible driving ads on TV, while some have decided to cut back their alcohol purchases due to cost of living pressures. This year, the World Health Organisation stated that “there is no safe amount of alcohol that does not affect health.”

While the alcohol-free wine segment is still small in dollar value, it is among the few segments showing growth in the wine aisles, according to the FMCG experts at Circana. Interestingly, the top two growth brands in zero alcohol wine account for 98% of total category $ growth.

Although beer sales are currently in decline in our supermarkets, low carb and alcohol free beer saw outstanding value and volume growth.

“As consumers adopt healthier

habits, ‘Better For You’ beer options are gaining traction,” explains the Circana team. “Better for you beer options such as low-carb and no alcohol are worth $82.6M dollars in the latest MAT and grew +33.8% in value.”

The alcohol-free trends play out across other categories as well with both alcohol-free cider and no-alcohol spirit replacements driving growth.

“Consumers are willing to pay a premium for no alcohol spirit replacement beverage options,” says Julie Bramley, consultant at Circana. “Worth $3.0M, these ‘Better For You’ options have grown +176% in value vs. two years ago.”

A billion dollar category

Circana retail data shows that the alcohol category in grocery is currently worth $1.6 billion, representing 9.2% of the grocery wallet, a decrease from the heady 10.8% share it held in 2019. In the past year, the category has experienced a decline of 4.2 % in value and 8.4% in units. Beer has performed worse than wine, with a 6.2% decrease in value and 9.5% decrease in units compared to wine’s 2.4% decrease in value and 6.9% decrease in units.

Some of this can be contributed to channel switching to both retail

“

Health and wellness trends have fuelled the growth specifically of functional, sports, energy, and no alcohol beverages.”

liquor stores and growth in hospitality. The latest Stats NZ retail results show food and beverage services up 24% in value and 14% in volume compared to the March quarter last year.

“Other beverage categories are also doing well as consumers shift their spending towards carbonated beverages, coffee/tea, chilled juices, and lifestyle drinks. Over the past few years, health and wellness trends have fuelled the growth specifically of functional, sports, energy, and no alcohol beverages.”

Beverage firms throughout the world are investing extensively in R&D to create new and creative no alcohol products that match

consumer demands for taste, quality, and diversity. Pernod Ricard, for example, recently bought a 14.2% equity investment in non-alcoholic drinks company AF Drinks. What makes this market so profitable and appealing? It’s a large market. Regular drinkers trying to break up their booze with smart, delicious no or low proof options are one of the greatest drivers of the non-alcoholic sector.

Three key factors are shaping new product development in the no alcohol category: flavour, packaging and branding.

Source: Circana 2023 Beverage Report based on MarketEdge Grocery Data to MAT 19/03/23 Stats

Z’s fresh new store brings EV charging and barista coffee to the picturesque Remutaka Range

renovated site located in Upper

Mike Forbes, Site Leader of Z Remutaka, said the recent store refresh is part of a broader program to reinvigorate the look and feel of topperforming sites across the Z network.

An exciting time, Forbes said: “It is the most significant investment Z has made into its retail network since we launched the Z brand in 2010.

“Z Remutaka is unique to Z’s broader store refresh program in that it is actually new to the Z network, as it was previously branded under Caltex,” he said.

Moving with the times and anticipating the future energy needs of both locals and one-off customers, Z has invested in EV chargers to support evolving energy needs over the next few years.

A smart move in light of the government’s announcement last May that it aims to have 30 per cent electric and hybrid vehicles on New Zealand’s roads by 2030.

Mike Bennetts, Chief Executive of Z Energy, said that the electrification of light passenger transport is occurring at a pace that supports the rate that Z is scaling up its charging network.

Wellington,

A newly

Hutt north of

Z Remutaka, is supporting the changing needs and preferences of locals and visitors.

Z Remutaka’s new EV chargers form part of Z’s network-wide EV charging upgrades.

“By the end of 2023, we plan to have EV charging available at one in five of our Z sites. Within three years, we plan this to increase to see EV chargers show up at two in five Z sites,” he said.

Well-positioned to leverage its existing and well-established network of service stations gives Z an objective point of difference, offering customers a safe, well-lit charging environment with food, beverages and other onsite amenities in reach.

“Being a highway site, our weekday customers are mainly locals who work and live in Upper Hutt, but on weekends, we see more travelling customers heading from Wellington to the Wairarapa and back,” said Forbes.

Catering to a wide variety of people from the local region and beyond, Forbes said a significant challenge in the store refresh process was moving from a self-serve coffee system to a full barista service.

“A major challenge for our crew was moving from self-service coffee to a full barista service, offering alternative milks and iced drinks,” said Forbes. “However, the change has meant that we can deliver better customer experiences.”

A tight timeframe, 1-in-100-year weather events, and COVID-19 all wreaked havoc on the transition process, making managing everything tricky, said Forbes.

“Our builders and contractors did an amazing job to complete the store within the given timeframe,” he said, miraculously allowing the store to open on time in September last year.

Now positioned as a hub for EV drivers and customers seeking freshly made coffee, Forbes said that in the long term, it would be a challenge to keep pace with customers’ changing energy needs as EV take-up increases.

“Over the long term, a challenge will likely be to keep up with the changing needs of our customers. Z Remutaka is well-placed to deliver here, though, thanks to our newly installed EV chargers,” he said.

Also on the cards is the uptake of apps to support the in-store and online customer experience, something Forbes said could present a further challenge in the medium term for his store.

“I anticipate a challenge will be providing technology to support customer experiences, such as apps, while also maintaining solutions for other customers who are less reliant on technology,” he said.

Challenges aside, Forbes sees a bright future for Z Remutaka, doing what they do best. “An overall challenge that we are committed to meeting is maintaining the fast and friendly service that customers expect at their local Z station while also being attentive to their individual coffee, food, and convenience needs,” he concludes.

Barista coffee is now on the menu at

Z Remutaka, after the extensive store refresh.

“An overall challenge that we are committed to meeting is maintaining the fast and friendly service that customers expect at their local Z station, while also being attentive to their individual coffee, food, and convenience needs” Mike Forbes, Site Leader, Z Remutaka.

8 - 9 May The Cloud, Auckland

Exhibiting at C&I NZ EXPO gives you a presence at the only FMCG event that delivers:

A trade show purely focused on Convenience & Impulse and Independent Grocery Retailing

Access to motivated high-quality buyers

Exposure for independent operators who may not be receiving adequate representation

The opportunity to meet reps from corporate and independent chains

C&I NZ EXPO is devoted specifically to the needs of convenience retail owners and operators, where retailers and suppliers will gather for two days of information sharing, education, discovery, and networking. If you are, or hope to be, a convenience supplier then you want to talk to our audience of:

service stations

convenience stores/dairies/corner stores

newsagents

mini marts

independent grocery take-aways/hospitality venues

To secure your stand for the trade event of 2024

Email: exhibition@candiexpo.co.nz | Call: +61 2 8586 6172 candiexpo.co.nz