FMCG - June 2017 by The Intermedia Group

fmcgbusiness.co.nz

L E A D I N G

I N D U S T R Y

N E W S

June 2017 – Volume 4 – No 5

PLUS! HOT DRINKS

■ HEALTH & WELLNESS ■ WINTER MEALS ■

NEW ZEALAND’S LARGEST FMCG AND LIQUOR AUDIENCE

Are you ready for this year’s unmissable media format?

Large format in-store billboards at point of purchase 2016’s most sought after route trade media space is now here. Hypermedia are pleased to announce our new behind the counter posters in dairy convenience, fuel retailers and liquor stores. With an ever-expanding site list of more than 2,000 outlets available across New Zealand, this uncluttered, highly visible media format is perfect for impulse buying at checkout as well as being a great place to get your message seen by the local community.

FULL NATIONWIDE COVERAGE

1300

SITES AND GROWING DAILY

2 MINUTE AVERAGE SHOPPER DWELL TIME AT LEAST

1.6 million SHOPPERS A WEEK*

$85

FROM ONLY PER STORE, PER MONTH *Source: Nielsen Growing Convenience Oil and Convenience Market Overview July 2016.

To get your product or business noticed, get in touch with Jodie Tran on: phone 09 302 5736 or email jodie.tran@hypermedia.co.nz

contents

June 2017

Up Front

Events

Editor’s note

The Chocolate & Coﬀee Show is back

Industry news

In Season Fresh produce in store

Meet our Outstanding NZ Food Producers!

Events Calendar

Social Sphere Industry members spotted out and about

Category Insights 16

Hot Drinks

Winter Meals

Regulars 12

The Shout

Gear New technology for work, rest and play

Proﬁle Intergen - Is proﬁtability in the F&B sector predictable?

Health & Wellness Allergy-friendly foods

What’s Hot New products in store

Good Business 34

Industry news

FGC The Consumers’ Right to Know Bill

Legal advice New immigration rules for New Zealand

Feature It’s all in the packaging!

Marketing Publisher Dale Spencer takes a stroll down memory lane

Editor’s note and industry news

Industry news and insights

The business of women in brewing

Beer & Cheese

Craft beer’s top dog Q&A with Adrian Klemp

Waiheke Island: A World of Wine Book extract

The natural way: organic winemaking

Riesling Tasting notes from Cameron Douglas MS

Meet the liquor industry

See the latest gear for work, rest and play in this issue.

22 FMCG BUSINESS - JUNE 2017

[ editorial ]

HOT TRENDS

ime flies . . . can you believe it’s already June? This month marks the beginning of winter and to combat the cooler temperatures, we have curated a variety of seasonal delights to keep everybody warm and healthy. From winter meals to hot beverages, we have it all covered! The convenience food category grew by 24% last year and the Lifestyles of Health and Sustainability (LOHAS) market segment is growing at 30% per year. To find out what else is trending in New Zealand right now and see some of the latest product launches, I visited the Healthy Food Guide Live Show in Auckland recently. The show’s main focus was allergy-friendly products - another segment that is growing significantly in supermarkets - and so it was no surprise to see both Countdown (pictured below) and New World involved with stands at the show. Take a look at our feature on pg 28-32 with the latest ‘free-from’ products. Turmeric is a popular ingredient that is coveted for its anti-inflammatory properties and you will notice it appearing in a wide range of products, from supplements to crackers and beverages – as seen on our cover. We also bring you updates from the world of beers, wines and ciders and check out some of New Zealand’s great FMCG success stories. Technology provider Intergen for example, presents a vision of ‘glass-pipe’ transparency across your demand, supply production and fulfilment activities on pg 14-15. I am super excited about The Chocolate & Coffee Show returning to Auckland in September, organised by our team at Intermedia with new features, a brand new look for 2017 and my favourite food groups all under one roof! If you want to stake your claim for a great position at the show, please contact dspencer@intermedianz.co.nz . Did you know that Coffea arabica is the coffee-plant species accounting for 65% of the commercial production of the nearly 20 billion pounds of coffee consumed globally each year? Continually producing new flushes of leaves year-round, C. arabica grows in the tropics in 80 countries across four continents. More on coffee, tea and hot drinks on pg 16-21. Enjoy this issue,

PUBLISHED BY The Intermedia Group Ltd 505 Rosebank Road, Avondale Auckland, 1026, New Zealand ph: 021 361 136 PUBLISHER Dale Spencer dspencer@intermedianz.co.nz EDITORIAL DIRECTOR James Wells The Intermedia Group Pty Ltd AUSTRALIA james@intermedia.com.au HEAD OF CONTENT Tamara Rubanowski trubanowski@intermedianz.co.nz ph: 027 278 4761 NATIONAL SALES MANAGER Joel Bremner jbremner@intermedianz.co.nz ph: 021 370 065 SALES DIRECTOR Wendy Steele wsteele@intermedianz.co.nz ph: 021 300 473 THE SHOUT EDITOR Charlotte Cowan ccowan@intermedianz.co.nz ph: 021 774 080 THE SHOUT SALES MANAGER Angela Bowes abowes@intermedianz.co.nz ph: 021 130 6824 ART DIRECTOR Ryan Vizcarra ryanv@intermedia.com.au HEAD OF CIRCULATION Chris Blacklock cblacklock@intermedia.com.au PRODUCTION MANAGER Jacqui Cooper jacqui@intermedia.com.au

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

fmcgbusiness.co.nz

L E A D I N G

I N D U S T R Y

N E W S

June 2017 – Volume 4 – No 5

ON THE COVER The Alchemy Cordial Company is a familyowned specialist manufacturer and marketer of delicious dilutable drinks. They have launched the ﬁrst two products in their ‘Superfood Latte elixirs’ range (see pg 16-18 for more details).

PLUS! HOT DRINKS

n HEALTH & WELLNESS n WINTER MEALS n

NEW ZEALAND’S LARGEST FMCG AND LIQUOR AUDIENCE

FMCG BUSINESS IS PROUDLY ASSOCIATED WITH

FMCG BUSINESS - JUNE 2017

PUBLISHING ASSISTANT Eclypse Lee elee@intermedianz.co.nz SUBSCRIPTION ENQUIRIES Eclypse Lee elee@intermedianz.co.nz

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

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[ news ]

Hunt for NZ’s best pie begins Entries are now open for the 2017 NZ Bakels Supreme Pie Awards, but who will be crowned the winner in New Zealand’s largest food competition? The winning pie will earn its bakery stardom and sales beyond belief, as well as a cheque for $7500 and $1000 for all Gold Award winners, which will be presented at a gala dinner on August 1. This year marks the 21st NZ Bakels Supreme Pie Awards, a competition launched to promote the culinary skills of bakers and lift the quality of pies, one of this country’s most popular grab ‘n’ go meals. Any bakery can enter the competition with multiple flavour categories to choose from. NZ Bakels Managing Director Brent Kersel says: “Last year a panel of 21 judges spent over 10 hours judging 5284 pies, which were blind coded in 12 categories. This year we want the Pie Awards to be its biggest yet as a celebration of the competition and to prove once and for all that Kiwis love their pies! “We’ve seen many success stories as a result of winning the Supreme Award, the most notable being Patrick Lam, who took out the Supreme title again last year, his fifth in the history of the awards. It has boosted his business to where he is about to open another store. Could your pie lift your game to this level? “Of special interest to us in 2017 is the hope that we may find a

Pie baker Patrick Lam with his Supreme Award, on stage with NZ Bakels MD Brent Kersel (R) and MC John Corbett (L).

South Island winner. We know there are some champion mainland pies filled with delicious flavours that we don’t see in the North Island. We need those pies in the competition, and as part of that, we’ll ensure that they are delivered by our staff under tight security to our headquarters for independent judging,” says Kersel. For everything you need to know about entering the 2017 NZ Bakels Supreme Pie Awards go to Bakels Website www.nzbakels.co.nz or call the dedicated 0800 Pieline (0800 743546). You have until 5pm on June 29 to enter, and then until July 27, judging day, to work on perfecting your pie, if needed.

Sweet success at Pride in Print Awards Auckland-based Logick Print & Graphics Ltd has carried off this year’s Pride In Print Supreme Award for a multi-faceted presentation box to showcase the “top tier” status of premium manuka honey. The Awards were celebrated on a glittering night at Christchurch’s Air Force Museum in Wigram recently. The True Honey Large & Small Presentation Case also won this year’s Packaging Category prize, for delivering just what premium products require -- premium packaging. Created for client True Honey, a beautiful black box opens in concertina fashion, with a jar of manuka honey firmly gripped within the folds. The box can then be refolded, so the case can continue to showcase the honey after the purchase is made, and take pride 6

FMCG BUSINESS - JUNE 2017

of place on pantry shelves. Not only is the packaging spectacular, the design is perfect for the export market in particular. The outer packaging is sealed, preventing anyone other than the buyer from touching the contents, and ensuring total product integrity while being posted or couriered. Logick Principal Dave Gick said the firm was lucky to cater for clients who want something out of the ordinary. “Our reputation has been paved down that road for specialty and unique jobs. Sometimes with the jobs we take on, I am not even sure myself at the start if we can do it. That’s how much of a challenge it is.”

[ news ]

‘Most Trusted Brands’ revealed The love affair between New Zealanders and Whittaker’s is both sweet and enduring. The results of the Reader’s Digest annual Most Trusted Brands survey are out, and for the sixth consecutive year, Whittaker’s has been voted Most Trusted Brand of all brands surveyed. The family business, which has been making high-quality chocolate for more than 120 years, was also voted Most Iconic Brand, and won the confectionery category accolade too. Other top-listing brands for 2017 include Tip Top, Edmonds, Air NZ and Toyota. The category winners included Griffin’s (Biscuits); Vogel’s (Bread); Sanitarium (Breakfast food); Huntley & Palmers (Crackers); Dilmah (Tea and Fruit and herbal tea); and Hellers (Meat and poultry). Pams took the award for most trusted supermarket / home brand and the most trusted supermarket was New World. “Being ranked on the Trusted Brands list is a great achievement that means a company is genuine, authentic, reliable and consistent – and only the best brands can manage this,” said a Reader’s Digest

New World was voted New Zealand’s most trusted supermarket.

spokesperson. “This year marks the 18th time Reader’s Digest has commissioned its annual Trusted Brands survey. Ranking trusted brands remains as valuable an exercise as ever, it would appear. After all, consumers of today tell us the number one quality they demand of a brand is… honesty,” said the spokesperson.

FMCG BUSINESS - JUNE 2017

[ news ]

No break for KitKat in court Confectionery multinational Nestlé has lost the latest round of its long-running battle with rivals Cadbury to trademark the shape of the KitKat bar in the UK. The court of appeal ruled that the four-finger design had “no inherent distinctiveness”. After deliberating for months, three appeals judges delivered their judgment in a 16,000-word ruling that found the KitKat shape was not a “badge of origin”. The judges also noted that the chocolate bar’s shape had not been central to its marketing in recent years: “It has nothing, therefore, to do with the informed choices that consumers make between similar products.” The judges heard that Nestlé had spent between £3m and £11m a year advertising and promoting KitKats between 1996 and 2007. The ruling marks the latest stage in a seven-year battle over the KitKat trademark between Nestlé and Mondelēz, the owner of Cadbury. Nestle’s appeal followed a UK high court ruling in January last year that blocked the trademark attempt. The European court of justice had previously found that the four-fingered shape, breaking apart with a snap, was not distinctive enough to merit a trademark and that such a designation would not comply with European law. The ruling clears the way for competitors, including major supermarkets, to produce their own copycat KitKats without fear of legal consequences. However, a Nestlé spokesperson indicated the Swiss firm was considering its next move. The company could potentially try to take the case to the UK supreme court.

The four-fingered battle is not the only lengthy legal dispute between the two confectionery giants. In 2004, Cadbury attempted to trademark the shade of purple it uses for its Dairy Milk bars, registering Pantone 2685C in a move that was initially successful before the court of appeal backed Nestlé challenge in 2013. An attempt last year by Cadbury to resurrect an earlier trademark on the colour was rejected by the high court.

DID YOU KNOW? The first KitKat-type bar was sold in Britain by Rowntree in 1935, when it was called Chocolate Crisp, and the shape has changed little since then. Nestlé acquired Rowntree in 1998.

New World trials meal kits New World is responding to a growing trend for ready-to-go meals for shoppers who don’t want to have the stress of figuring out what to serve for dinner. Customers at New World Eastridge, Stonefields, Howick, and Thorndon are the first to be able to try the new meal kits. “We know there are many customers out there who are short on time and inspiration, who also need a bit of a nudge in the kitchen,” says Steve Bayliss, Group General Manager Marketing, Foodstuffs (NZ) Ltd. “We have the answer with delicious easyto-cook meal kits, which are being trialled at a handful of New World stores in Auckland and Wellington. “We pride ourselves on trying 8

FMCG BUSINESS - JUNE 2017

new things to keep our customers happy and excited,” says Bayliss. “We’re looking forward to seeing how customers respond to the service before rolling this out elsewhere.” The kits are prepared fresh in-store daily with pre-measured ingredients including meat or seafood, vegetables, spices and other special ingredients to give the dish a point of difference. The options available change every week to keep things fresh and to capitalise on what’s in season. The kits come with easy-tofollow recipe cards and are available as two serves or four serves for a scrumptious family feed. The meal kits start at $22.99 for two and $37.99 for four serves.

Optimising Trans-Tasman communications Understanding the differences not just similarities - between New Zealand and Australian markets is the key to more effective TransTasman marketing, according to new research from Kantar TNS. Kantar TNS has released its ‘Optimising Trans-Tasman Communications Effectiveness’ report, revealing some key insights for marketers. Based on the research, Kantar TNS’s top five tips to improve effectiveness of Trans-Tasman communications are: • Challenge cultural assumptions – stereotypes differ from reality • Identify a unifying insight early on in the creative process • Differences in brand equity can impact a campaign’s ability to travel • Understand the competitive set for your brands in each market • Be specific – culturally ambiguous communications often fail to resonate. Qualitative Director Nicola Stokell says businesses marketing their Nicola Stokell, Qualitative Director at Kantar TNS. products on both sides of the Tasman face a number of common issues. “We often see examples of businesses who struggle to see why their campaigns perform differently in Australia and New Zealand and don’t know whether they are truly cost effective or how to improve their overall effectiveness,” she says. She explains that the research needed to dig deeper to answer the key questions ‘why are we seeing such differences in terms of the communication effectiveness – why do some Australian ads not travel well across the Tasman’? This revealed more pronounced differences around areas such as the cultural stereotypes we aspire to, humour, and our heroes and celebrities that did shed some light on the issue. The research indicated that Australian heroes are high profile. Resilience, bravery, courage and confidence are admired, specifically the ability to transform in the face of adversity. New Zealand heroes are typically everyday people – ‘my mum and dad’ who are hard-working, loyal, caring and genuinely make a difference to their families and communities. Like brands, TV celebrities can have different profiles and reputations on opposite sides of the Tasman and different celebrities can antagonise or win over different markets. Stokell says these differences, when coupled with some proven truths about the competitive landscapes of the two countries, really start to provide valuable insights. For example, the New Zealand market has less competitive intensity and is more price conscious than Australia. “Confectionery brands in Australia and New Zealand provide a great example of how the competitive landscape is rarely the same and brands often have different levels of familiarity and engagement in New Zealand versus Australia,” Stokell says. “Their campaigns also highlight that superficial changes to localise, such as voiceover dialect and product shots, are often not sufficient to improve relevance.”

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FMCG BUSINESS - JUNE 2017

[ in season ]

Top winter produce

une marks the beginning of winter and despite the cooler temperatures, there is a good variety of seasonal delights to keep everyone warm and healthy. Unfortunately, customers may face slightly higher prices for some fresh vegetables in the coming months due to extremely bad weather which damaged some crops in April. In the meantime, here are some top cold-season picks from United Fresh for June.

Broccoli Broccoli is the star member of the brassica family of vegetables, with its health benefits widely known. Once broccoli is harvested, it is stored in a high humidity chiller to chill it down and remove its field temperature. This helps to preserve it. Avoid broccoli that is yellowing or has large open buds. Dark green, compact bud clusters are best. Purchase in small quantities to guarantee freshness. Sprinkle with water before returning to the chiller at night. Store broccoli away from other ethylene-producing fruit and vegetables.

Yams The red-coloured yam is the most common variety in New Zealand but orange and yellow varieties can also be found. When buying, choose yams that are firm, blemish-free and brightly coloured. For retail, pre-pack in plastic bags and store at 0-2° Celsius with a relative humidity of 90-100%. Yams are mainly grown in the Waimate region in the South Island.

Kumara There are different varieties of kumara, however the three most common available in New Zealand are red, gold and orange. Firm, smooth kumara, with unbroken skin is best, and to ensure freshness, buy no more than a week’s supply at a time. Despite their hardy exterior kumara bruise easily so handle with care to reduce wastage. 10

FMCG BUSINESS - JUNE 2017

Store at 13-17° Celsius with a relative humidity of 75-80% in a cool, dark well-ventilated place. Never refrigerate or store kumara at less than 12° Celsius as this will result in chilling damage. Sprouting becomes a problem at higher storage temperatures. Store separate from other ethylene producing fruit and vegetables.

Kiwifruit Green and gold are the two main kiwifruit varieties grown in New Zealand. Choose kiwifruit that is semi-firm to touch, unblemished and with no soft, bruised spots or wrinkled skin. Kiwifruit are fragile, so avoid bruises by stacking them no more than two layers deep. Promote kiwifruit as an easy on-the-go snack.

Oranges New Zealand grows some of the best citrus in the world. From juicy mandarins and zesty lemons to the irresistible sweetness of navel oranges. Citrus fruit has an abundance of minerals and vitamins vital for healthy winter living including high vitamin C content. Choose oranges that are firm and heavy for size. At retail level, provide bagged and loose oranges for customers. Some customers like to hand-select oranges while others prefer the value of bagged oranges. A mix of bags and bulk oranges also provides a sunny visual contrast for displays. Other top picks for June include apples, pears, Brussels sprouts, lemons, grapefruit, swede and parsnips. To become a member of United Fresh, visit www. unitedfresh.co.nz.

PROMOTE KIWIFRUIT AS AN EASY ON-THE-GO SNACK.”

We have New Zealandâ&#x20AC;&#x2122;s

largest FMCG digital audience! Digital advertising and social platforms are now a driving force in media innovation, with video alone expected to grow 140% this year. FMCG Business offers unparalleled digital exposure to key decision makers, supermarket owners, category managers, suppliers and manufacturers, distributors, marketing and merchandising companies and more.

Our digital activity includes: eNewsletter

- A dedicated website with over 12,000 page views and 6,700 unique visitors per month*

7,000+ subscribers

Social Media

5,000+

- Social media platforms (Facebook and Twitter) with an audience of over 5,000

Website

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Have you booked your digital campaign for 2017? Discover the most effective advertising and marketing solutions for your business in this fast-paced and rapidly changing environment by contacting Joel today.

To discuss print, digital and social media advertising opportunities contact Joel Bremner - 021 370 065 - jbremner@intermedianz.co.nz

www.fmcgbusiness.co.nz

[ gear ]

Sphero BB8

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

This is the droid you’re looking for. Created by Sphero, BB8 comes with the wristwatch-like force controller that lets you drive BB8 using hand, wrist and arm movements. BB8 is also the gift that keeps giving thanks to a steady stream of updates. The latest of which allows BB8 to keep you company when watching Rogue one which just came out on DVD/Netflix. BB8 bounces, beeps and gets very excited when specific scenes happen or characters appear. http://www.sphero.com/ starwars/bb8

Vodafone Fibre-X

Fitbit Alta HR

The one universal constant with broadband is that fast just isn’t fast enough. While the promise of UFB appeals, the ugly reality is that many homes won’t be able to get it for the foreseeable future. Don’t despair. If your home is within reach of Vodafone’s cable network in Wellington, Kapiti or Christchurch, Vodafone’s FibreX can provide a blisteringly fast 200mbps or 1Gbps unlimited connection to the internet. http://www.vodafone.co.nz/broadband/ultra-fast-ﬁbre/ ﬁbrex/

Getting back into shape just got easier with Fitbits latest fitness tracking widget, the Alta HR. Not only is it slimmer than many other fitness trackers, it can also be customised via a selection of different bands and has a 7-day battery life. There’s plenty of bells and whistles too. It has continuous heart-rate and sleep tracking and will notify you when you get messages on your phone.

https://www.ﬁtbit.com/nzhome

FMCG BUSINESS - JUNE 2017

[ gear ]

Microsoft Surface Studio Should pen and paper be on the endangered list? If Microsoft have their way with the rather gorgeous Surface Studio, ink and parchment might soon be on their way to extinction. The Surface Studio Features an adjustable 28” ultra high-res display that can tilt to almost flat, just like an architect drawing board to be used with the Surface Stylus and Dial. The Surface Studio is aimed at designers and graphics professionals.

https://www.microsoft.com/en-nz/surface/devices/ surface-studio/overview

Gear 360 camera Samsung’s latest Gear 360 camera can record video in crisp 4K or even broadcast live, and it will shoot photos too. Unlike most cameras that snap what is in front of you, the Gear 360 captures what is in front, behind, above and below. This year’s version is smaller and easier to handle thanks to an easy-togrip body. http://www.samsung.com/ global/galaxy/gear-360/

P10 Plus Bigger is better, right? YES - says Huawei, whose P10 Plus is the bigger and slightly more ‘muscular’ version of the original Huawei P10. Packing a bigger 5.5” 2560×1440 LCD display, it looks gorgeous. This is helped along with a bigger 3,750mAh battery, 6GB of RAM (vs the P10’s 4GB) and a camera that allows you to capture superior low light photos. Like the P10 it also sports Huawei’s signature dual lens set-up, which includes 2 x lossless digital zoom and 4K Ultra HD video recording.

http://consumer.huawei.com/en/mobilephones/p10-plus/index.htm

FMCG BUSINESS - JUNE 2017

IS PROFITABILITY IN THE F&B SECTOR PREDICTABLE? D oes your organisation have the right technology in place to manage risk, make your sales team more successful, drive cost out of your supply chain and achieve operational excellence? New Zealand is renowned for its “food basket” economy, with eight of our top exports (56% or $19b) coming from our primary, food and beverage sectors. But business is increasingly complex and tough for companies who import, manufacture, and export food and beverage products. Consumer demand and expectations of choice within each category are continually on the up, increasing competition and putting pressure on your margins. Meanwhile your grocery business partners enforce tough terms of trade and complex pricing and promotion structures. Add supply-side pressure and we see the need to increasingly innovate products, driving manufacturing complexity and order fulfilment costs up. Then there are wage pressures, increased tenancy and utility costs to contend with. You already have a great brand and hire great people, but do you really have a technology platform that enables them to be at their best in each part of your value chain? Intergen can help your organisation achieve greater predictability and profitability across your operations. If you want to find out more, make sure you visit www.intergen.co.nz/food-and-beverage.

Make your sales force more effective How can you get your sales team 25% more time with customers, and a focus on order making, not taking? With the right technology platform in place, your sales force can be a productive, effective, well-oiled engine, and your customers will notice the difference. We help our clients achieve best practices with technology: • Enabling reps to be mobile and work where they need to, when they need to • Ensuring that all information related to the customer is 14

FMCG BUSINESS - JUNE 2017

presented to them in real time, with no phone call or visits to the office required • Where practical, allowing orders to be made by the reps with the customers alongside them, or potentially via online web ordering by the customers • Help sales people sell with insight

Great sellers need to be exceptional buyers No one stays in business selling in the F&B sector without having excellent execution on the buying side. The need to manage currency exposure, or commit early to volumes for key manufacturing inputs, quality checks, manage working capital by ensuring product arrives as it is needed, accurately allocating the landing costs of a shipment so your item cost is correct – all are fundamental to sustainable success. So what are the best practices and how do you achieve them? • It starts with Demand Planning, with many companies using history and input from marketing and sales to help them assess future sales, after accounting for any unexpected demand patterns like promotions and new product release. At a more advanced level, we can harness the power of machine learning to correlate patterns that are unlikely to be that obvious to anyone but a data scientist. • Accounting for the true cost of an inbound product shipment, allocating all costs associated with the shipment to each individual item. • Managing ETA of shipments and providing great customer service by having reliable ‘available to promise’ capability, when shipments are on the way, and delivery dates and all supply chain lead times are known. • Integration with carriers and 3PLs allows for a more seamless process, not to mention more timely and accurate information. Being able to visually manage planned orders will allow your procurement team to make better decisions, reducing stock outs and

[ profile ] improving customer service. Better still, these improvements enable your people to do less manual work, take a step back and consider how they can really add value to your business. Having stock in the right place at the right time for the right price is something that technology can help you with. Helping procurement make better decisions, provide accurate information to your team and customers, all providing a sustainable competitive advantage and more predictable profitability.

Transparency is key

correlated to other retail intelligence, for instance what the impact of certain store positioning achieves, or how a particular price point versus your competitor drove sales.

THE VISION WE PRESENT IS ‘GLASS-PIPE’ TRANSPARENCY ACROSS YOUR DEMAND, SUPPLY PRODUCTION AND FULFILMENT ACTIVITIES.”

Do you have clear visibility and traceability across your supply chain and production process? Does your sales and operations planning team stay on the same page? Are you locking down your production window consistently, or do you constantly seem to have to react and shuffle the deck chairs? Smaller run volumes, changing customer demands and the need to react to unexpected upstream supply chain issues are all part of doing business. The vision we present is “glass-pipe” transparency across your demand, supply, production and fulfilment activities. An environment where changes in one area are rapidly identified and often automatically reflected in your production plan. Supporting sales and operations planning with good information leads to the best decision making. It also leads to improved turnover! Intergen can help you systemise your key business processes to drive a more consistent outcome at lower risk. Your staff will love the automation, allowing them to focus on higher value tasks. Most importantly, your customer will love the consistent and predictable experience you can now provide them. Then, with visibility and traceability sorted, what comes next? Technology has advanced to the level where it will watch, understand and help identify patterns in your work practice. These patterns can help you improve as well as predict what will work best under a given set of circumstances. Machines won’t replace your great staff, but they will provide insight and analytical expertise that will revolutionise your productivity and success. The orders are in… now comes the hard part – ensuring that we meet our obligations with our trading partners and accurately account for the myriad of discounts and promotions. If we fail to get these things right we can lose hard-fought-for shelf space, or potentially have a less than accurate view of margin on products due to a disconnect between the capture of on and off invoice discounts and promotions.

How can you achieve best practices? First and foremost is the double-edged sword of EDI - the sometimes one-sided demands (where your partners get automation benefits and you don’t) and the fact that setting up EDI has a cost and requires some dedicated effort to clear “certification” testing with your partners. The good news is that when you have a reasonable volume of orders, you should get a positive return on investment. Whilst complexity in price management is predominantly driven by the Grocery sector, the level of cost and margin visibility you can achieve will go hand-in-hand with the product insights your sales team need. Using business intelligence, this information can be

• • • • • • • •

Technology can help you achieve greater predictability and profitability

Intergen has developed an integrated solution to meet multiple business needs specific to the F&B sector, designed to enhance your business across every element of your value chain. We have worked with many companies right across the food chain and through our experience, we’ve created an integrated solution to help your business with: • Enterprise resource planning • Sales order management and EDI • Warehouse management Integrated quality management Integration to manufacturing execution systems (manufacturing robots, scales, SCADA systems, packing stations) Financial management Websites and online ordering (commerce) Field sales tools (mobile CRM) Marketing automation and social media tools New product development Business intelligence

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FMCG BUSINESS - JUNE 2017

HOT DRINKS

What’s new in hot beverages? Local suppliers share their product launches and best sellers.

ew Zealand says Kia Ora to Ti Ora! Following the successful launch of Ti Ora’s premium New Zealand teas in 2016, five delicious new flavours have been added to the range. Lovingly crafted in New Zealand, these blends use some of the world’s finest tea leaves, along with fruits, herbs and native New Zealand botanicals - selected for their ability to support wellbeing. Already the leading super premium tea in grocery, Ti Ora has delivered incremental value to the category by trading consumers up to an impressive 39c per cup*. The delightful new flavours will broaden appeal further, allowing even more shoppers to buy into the exciting new world of Ti Ora. They include: 16

FMCG BUSINESS - JUNE 2017

• • • • •

Lemon & Honey Camomile with Manuka Leaf Peach & Passionfruit Green Tea with Kawakawa Cinnamon Chai Tea with Horopito Spiced Apple & Rhubarb Fruit Tea with Manuka Leaf Strawberry & Pomegranate Green Tea with Kawakawa Kawakawa, Manuka Leaf and Horopito perfectly complement Ti Ora blends and the combination has evidently been popular, with the range now doubling in size due to demand. Monique Mahe, Brand Manager from Jacobs Douwe Egberts (JDE) explains: “Kiwis are becoming ever more focused on choosing products that contribute to wellbeing, so we’ve included New Zealand botanicals that have unique and beneficial properties. They make for a special addition to our delicious premium Ti Ora blends!”

[ category insights ] With no added sugar, caffeine free options, all natural ingredients and New Zealand botanicals – it’s a premium choice for Kiwis. Ti Ora teas come in a resealable pouch for optimum freshness, each pack contains 15 silky pyramid teabags (RRP $6.49, enquiries should be directed to JDE NZ Customer Services, 0800 866 061). *Nielsen QTR to 30/04/17

Alchemy’s Superfood Latte Elixirs The Alchemy Cordial Company is a family owned specialist manufacturer and marketer of delicious dilutable drinks. They have recently launched the first two products in a range called the ‘Superfood Latte elixirs’ (as seen on our cover). The Golden Turmeric Elixir, which is a brilliant yellow concentrate, has the goodness of the spice of the moment Turmeric, which is paired with ginger, black pepper, organic vanilla and cinnamon. This elixir can be enjoyed in many ways, however cafes across Australia and now New Zealand are serving turmeric lattes, by simply adding it to hot milk. It can also be enjoyed in cold milk, or added to smoothies, shakes and is also delicious in water-based drinks and cocktails. The Golden Turmeric Elixir gets its brilliant colour from curcumin, which is the active ingredient in turmeric, famous for many health affirming benefits. The flavour can be best described as a delicious savoury custard or egg nog. Development of this product started more than two years ago on Alchemy’s founder Michael Bishop’s permaculture farm in Tintenbar, where he grows turmeric, and over that time it has turned into a delicious, natural, healthy, easy to use drink that health focussed consumers are loving. The Kyoto Matcha Elixir is without a doubt the easiest way possible to enjoy the delicious and healthy benefits of this Japanese Icon. Alchemy has sourced a premium graded tea from Kyoto. In processing matcha tea, the whole tea gardens are covered with reed mats for 20 days before hand picking. This concentrates the polyphenols in the leaves. The leaves are then de-stemmed and very finely stone ground into a powder. The difference between drinking standard green tea and a matcha is that with standard tea, tea leaves (or tea bags) are soaked in water and the flavour infuses, however with a matcha, you actually drink the ground up tea leaves, massively increasing the benefits of the drink. This also gives matcha its characteristic flavour. “The greatest challenge to enjoying matcha has always been mixing it into water or milk. The powder is very difficult to dissolve, which is why the Japanese developed the bamboo matcha whisk, and a zen-like process of tea making, however the elixir solves that beautifully, as you

just add 15ml to milk, either hot or cold and enjoy. For a more traditional matcha experience, it can be added to hot water (80°C). However you use it, we know you will enjoy it,” says Alchemy Founder Michael Bishop. Making a superfood latte could not be easier, just add 15ml of the elixir of your choice to hot milk (delicious in all milk options as well). Top the Turmeric with a light sprinkle of cinnamon or nutmeg. Alchemy’s superfood latte elixirs are available in 300ml, 500ml and 1L PET bottles Both of Alchemy’s superfood lattes are now available through Foodstuffs in New Zealand and will be spreading out through cafes and healthfood stores. They are proudly distributed by Topline marketing. For more information please contact your local Topline Representative or call 09 419 4061.

Red Seal Red Seal offers a wide range of specialty teas, including herbal, fruit and green teas. Red Seal Teas’ Brand Manager, Christel Maurer, explains: “Our range of Hot & Cold teas has seen an amazing success since its launch in 2014 and is now worth $3.0m* MAT, up 42.6%* vs LY. Red Seal continues to strengthen its number one position in the Specialty Tea category, with 34.2% market share vs 30.6% LY. But most importantly, Red Seal is the key driver of the Specialty Tea category growth (+5.5%* vs LY).

FOLLOWING THE SUCCESSFUL LAUNCH OF TI ORA’S PREMIUM NEW ZEALAND TEAS… FIVE DELICIOUS NEW FLAVOURS HAVE BEEN ADDED TO THE RANGE.” FMCG BUSINESS - JUNE 2017

[ category insights ] “In October 2016, we launched BODY RIGHT®, a range of three fruit teas with Garcinia Cambogia, which, combined with a healthy balanced diet and regular exercise, are great additions to a consumer’s weight management programme. BODY RIGHT® quickly became the leading weight management tea, with 1.5%** market share vs Healtheries Slim 1.3%**. “We also released Fruit Lovers, a variety pack containing some of the best-selling Hot & Cold teas, which is already the top-selling SKU in the range with 5.1 UPSPW**. The booming interest of New Zealanders in beverages offering exciting flavour combinations is ultimately helping create more interest in specialty black teas. Leveraging its success in Specialty Teas, Red Seal is now launching the first black teas in Hot & Cold format, featuring three delicious fruit flavours – Peach & Mango, Lemon and Wildberries. Just as the rest of the range, they contain zero sugar and can be brewed straight from cold water. Red Seal is confident that their continued innovation will drive even more growth in the Tea category and will be supporting this new range with a strong and targeted marketing plan. *IRI MarketEdge, Specialty Teas, Value sales, Total NZ Grocery, MAT to 16/04/17 **IRI MarketEdge, Specialty Teas, Value sales, Total NZ Grocery, 4 weeks to 16/04/17

Extensive headroom for growth

RED SEAL CONTINUES TO STRENGTHEN ITS NUMBER ONE POSITION IN THE SPECIALTY TEA CATEGORY, WITH 34.2% MARKET SHARE.” BRAND MANAGER, CHRISTEL MAURER 18

FMCG BUSINESS - JUNE 2017

Vittoria Food & Beverage continues to drive market growth through innovation, building brands and adding value. With over 20 years servicing New Zealand, this Australian familyowned business has become the third largest supplier of pure coffee in the North Island market in volume share#. The pure coffee category has experienced growth of +13.8%* in New Zealand driven by the exceptional performance of the capsules segment, with growth of +48.9%*over the past 12 months. Whilst just in its infancy, the segment has captured the imagination of consumers seeking café-style coffee at home with the added benefit of convenience. The capsules segment in New Zealand remains underdeveloped compared to similar overseas markets. There remains extensive

headroom for growth. In order to maximise performance Rolando Schirato, Managing Director of Vittoria F&B, believes that “retailers need to start thinking about reducing other underperforming hot beverage segments and allocate appropriate shelf space to capsules. The key to growth is seeding machines and, if retailers are not willing provide the space, the category’s overall growth is going to be significantly held back.” Having successfully launched the proprietary Espressotoria capsule system in the market in 2016, Vittoria F&B remains committed to driving growth by launching Caffé Aurora Italian and Chicco D’oro Espresso (Nespresso** compatibles) products. Individually sealed for freshness, the two products are providing customers with great quality and value. There is a clear opportunity for a branded entry level offering for customers to overcome barriers to entry, and Aurora and Chicco-compatibles capsules are well-placed to meet this unmet need in the market. “Our goal is to make it as easy as possible for consumers to trade up from instant coffee to a better quality espresso coffee,” said Schirato. # IRI MarketEdge, NZ Grocery NI, Pure Coffee, Volume, MAT to 05.02.2017 * IRI MarketEdge, NZ Grocery, Pure Coffee, Value, MAT to 05.02.2017 ** Nespresso is a trademark of Societe des Produits Nestle SA. Neither that company nor its affiliates have manufactured or endorsed this product in any way and have no association to Vittoria Food & Beverage.

Dilmah’s new range Dilmah Tea currently has in excess of 40 skus in the New Zealand market across all categories of the hot tea market: Black Mainstream, Black Specialty, Green, Fruit and Herbal Infusions. Nigel Scott, General Manager, Dilmah NZ Ltd told FMCG Business: “We have just launched our ‘new’ Infusions range, giving Kiwi consumers a flavour hit along with a goodness fix! “We have eight caffeine-free options in the range, containing various herbs, fruits and spices along with six of them being rich in antioxidants due to the inclusion of Rooibos.

RED BLACK is the new

At Red Seal, using innovation to boost sales – is always in fashion. This time we’re reinvigorating black tea – by infusing this classic variant with delicious fruit flavours. There’s three variants available and each can be brewed hot or cold. It’s the latest product from the No.1 brand in Specialty Teas*. And we think it’ll make Red Seal fruit flavoured black teas all the rage. *AZTEC, Total NZ Grocery, Value sales, MAT to 19.03.2017

[ category insights ]

WE HAVE JUST LAUNCHED OUR ‘NEW’ INFUSIONS RANGE, GIVING KIWI CONSUMERS A FLAVOUR HIT ALONG WITH A GOODNESS FIX!” NIGEL SCOTT, GENERAL MANAGER, DILMAH NZ LTD

Two of the products contain the wonder spice turmeric and this appears to be a winner with consumers so far. “They can all be enjoyed HOT or ICED. This is a segment of the market that Dilmah has not really been active in, but this has now changed!!” What are the consumer trends in this category? Scott says: “Mainstream black and green teas are indeed the strength of the Dilmah brand and as such still dominate by far the total tea category. However Infusions are showing excellent growth and this is a segment that Dilmah really needed to step up to. “Consumers are certainly looking for healthier, hydrating beverage options that are an alternative to caffeine – and sugar rich drinks. Infusions are considered a treat to be enjoyed at home with friends or at work or other social gatherings. “The Dilmah brand continues to perform strongly and holds the number one spot in value for the Total Tea Market with a 23.1% MAT share, with our flagship Black Tea Mainstream enjoying a 38.8% MAT value share (IRI MarketEdge MAT 2/4/17). “Our entry into the Infusions segment has been extremely encouraging with many positive comments coming from consumers… we are hoping for this range to be a big hit!” says Scott.

Barker’s popular cordials “Barker’s of Geraldine is the number one selling cordial in New Zealand growing +18.6%,” says Danielle Esplin, Sales and Marketing Manager – FMCG. NIELSEN DATA Total Supermarkets - CURRENT MAT to 23/04/2017 SDESC

Val Sales

Total Beverages

$698,816,527

Val % Chg YA 1.2

Cordials

$22,381,308

1.3

Total Tea

$93,535,943

5.2

Black Tea

$52,644,229

4.5

Herbal Tea

$19,345,508

10.8

Green Tea

$10,821,935

-0.5

RTD Tea

$8,512,539

8.0

Powdered Chai

$2,211,733

-4.9

Total Coffee

$242,879,427

5.3

Instant Coffee

$111,168,098

1.8

Roasted & Ground Coffee

$58,832,506

7.0

Flavoured Coffee

$54,356,841

3.4

Pods

$15,337,104

40.6

Coffee Additives

$1,191,581

8.8

Coffee Essences

$665,306

-1.5

Coffee Substitutes

$522,902

0.1

RTD Coffee

$81,610

100.8

She explains: “The growth has been fuelled by the brand’s commitment to deliver interesting flavour combinations and commitment to reduced sugar options. The range also provides seasonal versatility with most skus able to be enjoyed hot during the winter months or year round as an alternative to tea and coffee. “The broad offering of Barker’s fruit syrups appeals to multiple consumer segments; adults, teenagers and mainstream families. During the winter months the ‘winter wellness’ skus lift in sales as consumers seek out Barker’s squeezed New Zealand berry flavours for their daily dose of Vitamin C and antioxidants to help with winter immunity. Barker’s Lemon, Honey, Ginger has become popular in the category (ranked #2, growing +9.8%) and provides hot soothing relief for when sickness strikes. “Barker’s has been a long-time supporter of local blackcurrant growers and continues its commitment to promoting New Zealand grown blackcurrants, which are of the highest quality in the world. Last year saw Barker’s promote its range of winter flavours widely to NZ Health Professionals, spurred by the release of exciting research conducted by NZ Plant & Food Research, which suggested that NZ bred Blackadder Blackcurrants had an important positive effect on cognitive performance. “Barker’s continues to work hard on having a wide variety of reduced sugar options. Their hero NZ squeezed Blackcurrant fruit syrup, which was first launched back in the early 80’s has been replicated and adapted to suit consumer’s changing attitudes towards sugar. The original full sugar recipe still remains a strong seller ranked #5 in the total category. Added to this is now a Lite version using stevia as well as an Unsweetened Blackadder Blackcurrant juice, which has become a wellknown general health and wellness solution and will have a new look label this winter. One 50ml shot undiluted delivers 200% of the recommended Vitamin C dose and when diluted with hot water can be sweetened to taste with your chosen sweetener. “With an impressive 43% value share, Barker’s continues to focus on growth within the beverage sector and recognises the versatility of flavours which can be enjoyed hot or cold. Watch this space for more exciting launches from the brand later this year,” says Esplin.

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

FMCG BUSINESS - JUNE 2017

FIVE DELICIOUS ADDITIONS TO THE TI ORA RANGE. COMING SOON. Ti Ora is blended and packed in New Zealand using premium teas, fruits and herbs. Our master blenders have lovingly crafted our new range of delicious teas, each blended with selected native New Zealand botanicals.

www.tiora.co.nz

WINTER WARMERS Shoppers look for hearty fare and comforting meals to warm them on chilly winter nights. Here’s a snapshot of popular products and new launches this season.

eadows is excited to announce the launch of their limited edition ‘Winter Inspiration’ pre-packed mushroom punnets, just in time for the cold weather. The new packs come in three varieties – Pie, Casserole and Soup and are a spin-off of their popular ‘inspiration labels’ which launched in 2016 to help educate users on how to use mushrooms in meals. The new winter ranging applies to Meadow’s white button, white sliced and small portabellos, which are available throughout the country. Meadows have also created six delightful new “winter warmer” recipes to support the packs which target different levels of confidence in the kitchen. The recipes include Asian Broth with Chicken and Mushroom Dumplings, or Chicken Mushroom and Sage Casserole (pictured above) and feature on their website and social media. See www.meadowmushrooms.co.nz for more information. 22

FMCG BUSINESS - JUNE 2017

Artisano new release “We have released a brand new and exciting range - introducing Artisano Slow Cooked Meats - fresh ‘Heat ‘n’ Eat’ marinated cooked meats, now available nationwide across all major retailers,” says Mary Boulton, General Manager. “Our Artisano Slow Cooked meat range is a new meal offering that was created with busy consumers in mind who are always on the hunt for a quick, convenient and inspiring meal option. The Artisano slow cooked ‘Heat ‘n’ Eat’ meat range has been inspired by the unique meat cuts and flavours found in America’s deep south; with three variants on offer: 1. Ready to Pull Pork - a boneless New Zealand pork shoulder that has been slow cooked with spices and coated in a smoky and sweet apple sauce. 2. Ready to Pull Beef – a boneless New Zealand brisket slow cooked in a Texan style dry rub of spices 3. Beef Blade Steak – New Zealand blade steaks marinated and slow cooked in a bourbon-flavoured seasoning with a BBQ finishing sauce.

[ category insights ] “Our Artisano Slow Cooked meat range is all freshly made from New Zealand grown meat with authentic flavoured marinades. The marinated meats are slow cooked and full of flavour with that melt-in-your-mouth tender texture. Here at Artisano we have done all the hard work for you. Simply heat, shred, serve and enjoy the succulent meat chunks,” says Boulton. She adds: “Each Artisano Slow Cooked meat product serves four, making it perfect for sharing and creating delicious easy meals such as tacos, sliders, wraps, pizza, salad and more! A great option for an easy, inspiring, quick weeknight meal or feeding a crowd at weekend gatherings. “We are finding that consumers are demanding more internationally inspired flavours. Today’s customer is savvy, well-travelled and worldly. Therefore, they are looking for brands that can satisfy their demanding taste buds! A popular flavour (that we are finding people are requesting us to create more and more often) is that traditional American BBQ style – full of spice, sauce and that unmistakable sweet smoky flavour. BBQ, slowcooking flavours have never been more popular – or more in demand! “People are finding that it isn’t always practical or cost-effective to cook ‘low and slow’ meats for hours on end, or lack confidence in trying their hand at these style of cuts at home. “Our Artisano meats draw on the slow cooking and ‘melt in your mouth’ flavours of the American food movement and are full of flavour,” says Boulton.

IAM all about Protein The newest member of the IAM range launches in June. Marketing Manager at Topline Marketing, Rebecca Limbrick says her team is excited to introduce the next products in the IAM Superfood range. “IAM Superfood creates flavourful, high protein, high fibre meals that are convenient to cook and crammed full of taste. Souper is a fresh tasting, high quality, nutrition-packed, fully loaded soup. It has innovative packaging (with the benefits of ambient convenience), plus unique and colourful flavours that pack a real punch. “Souper is high in protein, a super source of fibre, low in saturated fat and contains nothing artificial. And most importantly, it tastes amazing,” Limbrick says. “The meaty range has three tasty flavours including Peppered Beef with Superbeans, Pulled Pork with Jalapenos and Chicken with Super Grains. The chunky soups provide customers with fresh tasting, high quality, nutritious meal options and they are artificial additive-free. And did we mention they are chunky?”

She adds: “Souper will launch into New Zealand stores from mid-June on the back of the successful launch of the Supergrains range. The high fibre, microwavable grains have now been available for six weeks and are proving to be a huge success, with shoppers loving the taste and convenience of a product that is healthy, filling and tasty.” Limbrick says 2017 will see shoppers look for tasty, healthy and convenient options in their supermarkets. “The convenience food category grew last year by 24% and the Lifestyles of Health and Sustainability (LOHAS) market segment is growing at 30% per year (sustainable.org.nz). “IAM Superfood’s meal options provide shoppers with easy, tasty and healthy choices. With innovative, bold and sustainable packaging, these products will stand out on your shelves and breathe life into the Readymeal and Soup Grocery Categories. “Contact your Topline Marketing Representative for more information about the range, or phone Topline HQ on 09 419 4061,” says Limbrick.

OUR ARTISANO SLOW COOKED MEAT RANGE IS A NEW MEAL OFFERING THAT WAS CREATED WITH BUSY CONSUMERS IN MIND.” MARY BOULTON, GENERAL MANAGER

FMCG BUSINESS - JUNE 2017

[ category insights ]

I Love Pies A new limited edition flavour from gourmet pie makers, I Love Pies, marks a first for supermarket pies and has come out just in time for consumers looking for convenient and comforting winter meals. “We love coming up with our bi-annual limited edition pies – it’s a really fun process that the whole team at I Love Pies gets involved in. Consumers love it too as it injects excitement into the category and encourages trial,” says co-founder and product developer Jessie Stanley. “After the highly successful launch of our limited edition steak and ale pie last year, we wanted to create something that would appeal to Kiwi taste buds in a similar way, but also introduce something new. A pie that showcases the classic flavour combination of tender pork, apple and kumara was the result. “A non-negotiable for I Love Pies was using only free range pork. “Using top quality New Zealand

SIMPLOT HAS RECENTLY ACQUIRED THE SYMINGTON’S RANGE OF PASTA AND SIMMER SAUCES, WHICH INCLUDES FIVE BROTHERS AND CHICKEN TONIGHT BRANDS.” 24

FMCG BUSINESS - JUNE 2017

ingredients is one of the core values we have built our brand on. So we worked with free range pork supplier Harmony to ensure that the pork we use comes from happy pigs that have had a good life. We believe this enhances the flavour and texture of the pork meat in the pie.” Granny Smith apples and kumara give the pie a lovely sweet background flavour. The filling also has a hint of sage in the delicate sauce. The pie comes in two sizes – a large family-sized pie (RRP $18.95) perfect for busy households on-the-go, and a smaller standard pie ($4.99) for people to enjoy all to themselves. “The pies feature the sour cream and butter pastry I Love Pies is famous for. No I Love Pies product has any nasties like palm oil, MSG, artificial colours, flavours or preservatives,” says Stanley. The limited edition Pork, Apple and Kumara pie is available in supermarkets across New Zealand including New World, Pak‘nSave and Countdown, in the chiller section, for a limited time. “Feedback from the trade so far has been very positive - with some retailers going so far as to say it is ‘flying off the shelves.’ Outlets from around New Zealand are getting enquiries from shoppers about whether they will be stocking it. Consumers have told I Love Pies they are loving the combination of pork and kumara and that it is perfect to enjoy on these cooler nights,” says Stanley.

Comfort food ideas from Simplot Julian Ng, Group Brand Manager and Janelle Jowsey, Category Manager - Simplot New Zealand say: “For a lot of shoppers ‘Winter Meal Wins’ mean a few things… staying indoors, low stress cooking and comfort food! The Cooking Sauces & Pastes category has evolved to give this large group of shoppers a broad enough range of flavours, ethnicities and cooking styles to have something different every night of the week with minimal effort and delicious results.

ARE

FOR

[ category insights ]

WE ARE NOW ROLLING INTO STORES ACROSS ALL OF NEW ZEALAND WITH VERY STRONG PROMOTIONAL SUPPORT.” BLUE FROG FOUNDER SCOTTY BARAGWANATH

“With flavours like Traditional, Italian, Indian and Asian and styles to match all cooking abilities, this category appeals to a very broad range of shopper. It’s no wonder 80% of shoppers buy at least fortnightly, growing an $88m* category by 3.2%.” Simplot has a broad range of Leggo’s pasta sauces and pastes in New Zealand. These include convenience pasta sauces, bakes, and also stir through sauces. Additionally, Leggo’s is also available as a range of tomato pastes and purees for those that like to cook from scratch. Jowsey and Ng explain: “Overall, Leggo’s holds a 26% share* of total Italian sauces and pastes. Once again, Leggo’s will be supported with TV advertising across May and June 2017 to drive shoppers into store.” Simplot has recently acquired the Symington’s range of pasta and simmer sauces, which includes Five Brothers and Chicken Tonight brands. Five Brothers is a quality pasta sauce brand with high quality ingredients for the more discerning consumer. Chicken Tonight is an iconic brand. This range is currently being managed by James Crisp, and will revert to Simplot management from July 2017. Jowsey and Ng say: “Chicken Tonight is the second largest brand in the simmer sauces category with 19.9%* share, and growing at +2.7%*, whilst the overall category is declining at -3.1%*. It is a family favourite at dinner time and provides a variety of irresistible flavours and sauces that all the family will enjoy. We are constantly looking to optimise our product range and bring exciting products to market that consumers enjoy. “The cooking sauces and pastes category is a staple that is shopped weekly by over 60% of households (Nielsen Winning Brands Survey Dec 2016). There are two main shopper types in this category: 1) Help me out (cooking is a chore, and looking for convenience and simplicity) 2) Food lovers (love to cook for family and friends, and enjoy receiving recognition and praise for their efforts).” *Source: IRI data to 26/3/2017

It’s time to ‘Tartan’ up yer brekkie! Blue Frog has been making ripples in the super premium cereal category for 18 months and has relaunched with a fresh new look in November 2016. They are looking at all areas of the breakfast category for premiumisation opportunities to really drive category sales value and see that the porridge category is ready for expansion through true product innovation. Founder Scotty Baragwanath says: “Porridge is a strong category with many consumers 26

FMCG BUSINESS - JUNE 2017

switching to porridge during winter, but also a high percentage are habitual users all year round. When reviewing the market place it was clear the market is highly generic and ‘commoditised’ with very similar offerings being available under key brands. These products, while offering convenience in single serve sachets, force customers to compromise on the inclusion of high levels of refined sugars. We believe the current porridge category reflects where the premium cereal category was seven years ago, with significant potential for premiumisation through higher dollar per units sales for the right offering – premium whole food ingredients while remaining true to the porridge tradition. “Three of the biggest global consumer trends today are gut health, plant-based whole foods and convenience and we have developed a product to clearly deliver to all of these. “Our product is a wee power gathering of the clans in a bowl of porridge. A new super premium, nutritious and delicious porridge in the instant oats category and an Australasian first – the inclusion of super heat-stable probiotics! Heilala Vanilla bean, organic chia seeds and Probiotic Ganedon BC30 are blended with smooth baby oats and packaged into 8 x 40gm metallic gold porridge pockets and sold in our very own and very striking Blue Frog tartan box! A porridge of wonderful rounded flavour with no need for added sugar, now our customers can have their probiotics and brekkie all in one! “We have created a product with a real point of difference and clearly in demand by both current consumers of single serve sachets but also those customers in the premium cereal category looking for winter alternatives. Our product contains no refined sugar (almost a third the sugar of other brands), is crammed with natural and organic ingredients and is quite possibly the world’s best tasting bowl – at least south of Glasgow!” Product is available now, says Baragwanath. “We are now rolling into stores across all of New Zealand with very strong promotional support and a focus on intense in-store sampling and display, so please contact Scotty for any sales enquires at scotty@ bluefrogbreakfast.co.nz.”

My Main Course For Hellers’ Brand Manager Brydon Heller the onset of winter is the perfect time of the year to ramp up Hellers’ latest offering – My Main Course’s range of versatile meal bases. After launching to the market with six different SKUs, the My Main Course team are getting ready to introduce three new variants, all of which have received great feedback during consumer trials. “We’re looking to have these new products on the shelves within the next six weeks”, says Heller. “That will coincide with a big push to grow sales and increase awareness around the My Main Course brand”.

[ category insights ] My Main Course has been recently presented at a variety of food shows throughout the country. It was incredibly well received, with Annabelle White on hand to promote the product. “The category is breaching a gap in the market for convenience shoppers”, says Heller. “It’s a great way to produce quick, tasty meals, and is perfect for those who shop multiple times each week.” My Main Course is the latest offering from the thriving Canterbury-based business, who is not only New Zealand’s leading producer of smallgoods, but is also the owner of Santa Rosa chicken. “It’s certainly an exciting time. This is a new category, so there’s obviously a need to educate the market. But that market is one with immense potential and room for significant growth, and we’re very optimistic about what the future holds for My Main Course. My Main Course is perfectly poised to take advantage of this growth”.

Heinz Wattie’s Cooking Sauces “Overall New Zealand consumers have a limited meal repertoire and are looking for meal inspiration,” says Kerry Tomane Marketing Manager – Cooking Sauces at Heinz Wattie’s. Tomane adds: “Cooking Sauces (worth $65m +2.5%) provide the shortcut to frequently cooked meals, with ease and convenience the main purchase drivers. “Pasta Sauces is the largest cooking sauce segment accounting for 42% share, growing +7% vs. last year. Heinz Wattie’s has two brands within Pasta Sauces - Wattie’s (mainstream) and Heinz Seriously Good (premium). Heinz Seriously Good has been incredibly successful (+3.1% with 16% share), with Heinz Seriously Good Cheesy Lasagne Bake now the number one in Pasta Bakes. “Heinz Seriously Good will continue to provide consumers with quick and easy meal solutions that don’t compromise on taste with the launch of two new products - NZ Tasty Cheddar Macaroni Cheese Bake Sauce, and Spicy Tomato & Chilli Pasta Sauce. In addition, there are three improved recipes and significant brand support (‘Macaroni Cheese Just Got Better’ outdoor, digital and social) across June and July 2017. “Stir Fry sauces account for 15% of the cooking sauce market, with Heinz Wattie’s driving growth (+12% vs. Total Stir Fry +4.5%). The number one Stir Fry brand, Wattie’s WOK Creations, has grown share to 45% and sales +16% vs. last year off the back of a packaging relaunch and ‘Make Wednesday’s WOK’ campaign. Wattie’s WOK Creations will continue to leverage the ‘Make

NIELSEN DATA Total Supermarkets - CURRENT MAT to 23/04/2017 SDESC

Val Sales

Total Canned Meals

$83,894,602

Val % Chg YA -1.6

Canned Meals

$3,129,660

1.5

Total Chilled Convenience Foods

$146,184,378

6.6

Fresh Meat Pies

$52,296,539

8.7

Fresh Soup

$22,943,573

11.3

Fresh Pasta

$19,883,947

3.7

Fresh Pizza

$13,519,338

3.4

Fresh Pizza Bases

$12,668,753

1.3

Fresh Pasta Sauce Excl Pesto

$7,252,576

-3.7

Quiche

$6,290,815

4.6

Convenience Food

$3,380,874

38.8

Fresh Non Pasta Cooking Sauce

$25,340

-30.5

Total Frozen Convenience Foods

$125,164,088

7.8

Frozen Meat

$30,573,277

15.7

Frozen Snack Meals

$21,365,144

4.6

Frozen Pizza

$18,900,632

2.5

Frozen Full Meals

$16,900,773

0.9

Frozen Sausage Rolls & Savouries

$16,772,828

4.7

Frozen Meat Pies

$6,094,789

-4.4

Frozen Vegetarian

$4,823,650

15.9

Frozen Pizza Bases

$2,932

-18.5

Total Soup

$56,892,240

Canned Soup

$23,986,175

2.1

Instant Soup

$16,778,267

-0.4

Packet Soup

$9,876,494

1.2

Soup Mix & Pulses

$6,251,303

-1.9

Total Cooking And Simmer Sauces

$79,727,135

3.2

Pasta Simmer Sauce

$31,911,313

2.7

Asian Simmer Sauce

$23,950,140

3.6

Other Simmer Sauce

$8,773,490

-2.0

Meal Solutions

$90,193,137

3.5

Noodles Multipack

$31,658,181

1.4

Cooking

$11,425,259

10.6

Rice Meals

$9,909,054

-1.8

Pasta & Sauce

$9,825,814

-5.6

Cup

$9,319,921

1.9

Other Meals

$7,337,718

11.3

Noodles Single

$5,446,482

29.6

Mac & Cheese

$2,962,754

8.0

Quinoa

$1,213,369

-8.6

Bowl

$1,034,629

3.7

Other Noodles

$59,683

29.8

Fresh Meals

$14,218,739

17.6

0.7

Wednesday’s WOK’ platform across digital and in-store May and June 2017, to inspire consumers to add Wattie’s WOK Creations to their weekly repertoire and grow overall Stir Fry penetration,” says Tomane. Source: Nielsen $ Sales Total Supermarkets MAT to 23/04/17

[ health & wellness ]

ALLERGY-FRIENDLY FOODS

suppliers, we also conduct our own testing, including random testing t Ceres Organics a key business objective is to to support any related labelling claims,” Robinson explains. continually increase the availability of allergyNori seaweed snacks are also suitable for those avoiding gluten and friendly foods across their broad range of categories. nuts – perfect for school lunchboxes. If sulphites are on the no-go And they do it in a way that consumers can trust. list, Ceres Organics dried fruits are available – they never contain “We go to great lengths to ensure that our allergyadded sulphites. You’ll notice their naturally muted friendly products are traceable colours, there’s no “fake, bright orange” apricots from farm to plate, we know what the ingredients found in their packets, says Robinson. have been in contact with during every step of the Quinoa ticks all the boxes for those avoiding production process,” says Ceres Organics Technical any of the “big ten”. Fitting for breakfast, lunch, and Quality Manager Nigel Robinson, who takes dinner and baked-snacks it’s a top allergy-friendly on this role very seriously. Product and processing ingredient. Ceres Organics will be placing a lot of information and traceability is paramount to AT CERES focus on quinoa over the next year. Glenn Cochrane, ensuring that consumers can rely on a brand, Ceres Organics National Sales Manager says: especially when it comes to allergens. ORGANICS A “Quinoa had its ‘foodie’ boom a few years back, but Ceres Organics have around 400 products in its KEY BUSINESS now we’re seeing this in the mainstream too. We range, many of which are allergy friendly for at least OBJECTIVE IS TO want absolutely everyone using it. It’s so versatile, one of the “big ten” allergens – tree nuts, shellfish, easy to cook and beneficial nutritionally – no one gluten, eggs, peanuts, dairy, soy, sesame, honey CONTINUALLY should miss out on that.” and sulphites. Ceres Organics Rice bites, cakes INCREASE THE You’ll see Ceres Organics new quinoa packaging and crackers are big winners in the gluten-free on shelf from July, it’s eye-catching, fun and aims to category. Made with key partners in Thailand these AVAILABILITY reach out to the masses. It’s fully compostable (the products carry the Coeliac Society’s Crossed Grain OF ALLERGYfirst of its kind for this type of product) so it’ll be Certification. “Where we make an allergen-free claim, not only do we demand evidence from our FRIENDLY FOODS.” kind on your garden too. 28

FMCG BUSINESS - JUNE 2017

[ health & wellness ] Nourish Healthy Foods Nourish Healthy Foods is a small innovative Wellington based company that has created healthy snack bars. “From personal experience we wanted to create snacks that were allergy friendly, therefore we sourced the most nutrient-rich, flavoursome, glutenfree ingredients that we could find to create Nourish bars,” says Founder John Matsis. Nourish bars offer excellent margin potential, low capital outlay and quick stock turns (10 bars/display unit. Four display units / outer). Matsis says: “The range consists of the classic pairings of Honey & Almond, Cacao & Hazelnut, and Vanilla & Walnut, which are destined to fly off the shelves. We have also packaged the bars with an innovative, fun, bright and eye-catching design that will create interest in the customer’s eye. Nourish bars meet the growing market for convenient healthy snacking between meals or pre/post any exercise. “Nourish bars were developed with the customer in mind, we really wanted to understand what the customer wanted and what they didn’t want. Very quickly it became clear that customers are looking for snacks that are full of natural ingredients that are nutritious and free from chemicals. This created the brief for a product that would be relevant to today’s market. Nourish bars are crammed with 12g protein plus 7g fibre and good fats from premium nuts, they are allergy friendly and taste amazing,” says Matsis. Contact John on 021 18 27 603 or info@nourishnz.com www.nourishnz.com

Nuttelex Maud Chatras, Product Manager at Hutchinsons, told FMCG Business: “Nuttelex, the Healthy Alternative, is a unique natural, table spread made from the finest blend of plant oils. It is free from many common ingredients found in butter, margarine and other table spreads, making Nuttelex the perfect choice for families seeking a healthy alternative spread for their sandwiches or toast!” The Healthy Alternative is not just a slogan – it’s been part of Nuttelex‘s DNA. Since 30

FMCG BUSINESS - JUNE 2017

early beginnings in the 1930’s Nuttelex has been developed to ensure it is always: • Gluten free • Nuts, corn and peanut oil free • Dairy, egg and lactose free • Cholesterol free • Soy free • Free from artificial additives, preservatives, colourings and sweeteners • 100% Vegetarian (suitable for vegans) • GM free • Free from saturated animal fats “Consumers who use Nuttelex spreads are seeking a versatile product that can be used in spreading, baking and cooking. Nuttelex is dedicated to offer these consumers the very finest, absolutely yummy and nutritious, naturally plantbased spreads,” says Chatras. “Thanks to the addition of two new products, Buttery and Coconut Oil, launched in October 2016, Nuttelex has grown its sales by +87% in value for the last Quarter ending on the 22/01/2017 (IRI Express Report, TKA). Nuttelex is available in three delicious variants: Nuttelex Olive: A taste of the Mediterranean Nuttelex Buttery: Melt in your mouth goodness Nuttelex with Coconut Oil: A tasty new option that is free from Palm oil.” Chatras says: “Consumers are seeking a healthy lifestyle or natural products due to medical conditions – thanks to Nuttelex it’s easy to add goodness into the day without compromising on taste. For more information visit us: http://nuttelex. com or follow us on our Facebook page.”

Pure Delish The pure delish team is about to celebrate their 20th year in business. From starting out in the kitchen making gourmet Xmas cakes, then fastforward two decades and they are one of the market leaders in the premium breakfast cereal category, also making a range of snack bars, biscuits/bites and slabs. A decade ago when pure delish started making breakfast cereal, they saw a gap in the market for a super-premium, amazing tasting cereal that also didn’t contain sulphites, preservatives, artificial colours or flavours. Consumers were starting to notice how much was ‘added’ into the average cereal and were looking for cleaner healthier options. “Over the last 10 years it has become more and more important for consumers to have an offering of allergy friendly products,” says Kaz Staples – Owner and Managing Director.

[ health & wellness ] “New trends in consumer behaviour and the reason why they buy is constantly changing, especially in the health and wellbeing sector. People are not only aware of allergens but also of the health benefits and nutritional value of the products they are buying. “pure delish makes a wide range of allergy friendly products. You will find something for everyone including gluten, grain, dairy and egg free options. They also cater for vegans, diabetics and people with sulphite allergies. The one thing they are not, however is FLAVOUR FREE! At pure delish the number one priority is taste and texture before anything else. “pure delish’s main focus is to create amazing tasting products that are not only healthy and densely nutritious, but are allergy friendly as well. Each product is unique and many offer a range of features that cater for various allergens. “We are about to launch a fantastic new user-friendly resealable pouch and add two new flavours to the already amazing tasting range of cookies. The new packaging will have a fantastic shelf presence and will be targeted for the biscuit aisle of the supermarket. We want everyone to be able to have access to these amazing morsels, so getting them in mainstream grocery will help achieve this,” says Staples. All five of the biscuits/bites are gluten free and are free from artificial colours, flavours and sulphites. They are all handmade in pure delish’s very own gluten free facility by a very talented team of bakers. Contact Tina Thomas at pure delish (tina@ puredelish.co.nz) or Geoff Cassin from Selling Solutions (geoff.cassin@sellingsolutions.co.nz) for more information.

In addition, Mother Earth has launched a brand new flavour – Mother Earth Nuts About Superseeds. This delicious bar has peanuts and almonds combined with the goodness of linseed, sunflower, pumpkin chia and sesame seeds. This product has lots of plant power, which is a growing trend in the market. Needless to say like all Mother Earth bars there aren’t any artificial colours or flavours.

Gluten free pancakes go down a treat The modern world is complicated, but when it comes to simple moments of enjoyment – like eating pancakes – it doesn’t have to be. That’s why Marcel’s makes it easy to create a little pocket of pleasure in your day. Marcel’s pancakes are deliciously light and fluffy, and taste like they were made just moments ago. Given you only have to heat them quickly in the microwave or frying pan, you’ll never struggle to get the perfect pancake again! Why waste time and make mess with mixing bowls, when with Marcel’s all you have to do is add the finishing flourishes. Founder Marcel moved from Belgium to New Plymouth nearly 20 years ago with his wife Inge, bringing with them their love of pancakes made to perfection. They continue to run this family business with Inge’s son and Marcel’s stepson, Rafael. “Growing up in Belgium, I was the youngest of seven and on Sunday mornings we would queue for our mother’s delicious golden crepes,” says Marcel. “Life is so busy these days, but finding time to share those happy moments with family and friends is as important as ever. Our pancakes cater for a modern lifestyle that is time-poor, but has a craving for the finer things in life! We want everybody to be able to relax and have a moment of pure enjoyment without the hassle.” With perfect ready-made pancakes, people can have all of the pleasure, with none of the pressure. The range includes ‘Gluten Free Happy Pancakes’ and ‘Ooh La La Plain Gluten Free Crepes’ – perfect for people with gluten intolerance, for use with savoury fillings, or as a healthier low sugar alternative. The bright, new look, Marcel’s range is available in supermarkets from RRP $3.29.

Mother Earth’s NUTS ABOUT bars Mother Earth’s range of NUTS ABOUT nut bars are specially formulated to be gluten free. They taste delicious, are packed full of nuts and are very affordable for consumers. The range has just had a packaging refresh: the new look emphasises the range’s ‘GLUTEN FREE’ and ‘SOURCE OF PROTEIN’ claims, there’s a reduction in height of pack for better shelf fit (no change to the bar size), and the Healthy Star Rating has been added to front of pack. 32

FMCG BUSINESS - JUNE 2017

Marcel’s gluten free crepes

[ what’s hot ]

Farrah’s spice up Mexican Range!

Premium cow & buﬀalo mozzarella Ghiotti has launched a new mozzarella range made in Italy. Thanks to the traditional Italian recipe, Ghiotti mozzarella have authentic texture and delicate taste of milk. Made with cow or buffalo milk, Ghiotti mozzarella is available in various formats and sizes to satisfy all consumer needs. Discover how to use Ghiotti products on our website: www.ghiotti.co.nz Phone +64 (0)9 551 7410

In addition to the exciting Mexican Range that was launched in 2016, Farrah’s is introducing a NEW Fajita Spice Mix. This is a combination of Mexican spice with a hickory smoke flavour. It’s gluten free, contains no artificial colours or flavours and is mild in heat. It’s the perfect family friendly spice mix for consumers who love Mexican flavour without the extra heat, making it suitable for everyone’s next Mexican meal. Order with Twin Agencies 0800 258 946 www.farrahs.co.nz

Mother Earth Nuts About Superseeds NEW Mother Earth Nuts About Superseeds are a tasty Gluten Free Nut Bar, made with peanuts and almonds, combined with the goodness of sunflower seeds, pumpkin seeds, chia seeds, sesame seeds and linseed; A source of protein and deliciously good. For more information contact Prolife Foods on 0800 80 80 88 or at www.motherearth.co.nz

Barnyard’s small animal feed range

Grin Whitening toothpaste

Barnyard’s new premium feed range is available in 2.0Kg and 2.5Kg formats. A convenient source of nutritionally balanced feeds to meet the needs of free range laying hens, rabbits and guinea pigs. Packed in resealable, clear, stand up bags with user friendly information on the back. Contact: 0800 367 3447 Mainfeeds.co.nz

NEW Grin Whitening toothpaste is specially formulated to restore the whiteness of teeth whilst providing fresh breath and protection against bacteria. It combines the power of three active ingredients: baking soda and organic sea salt, to lift stains and whiten teeth and Propolis, a natural antiseptic to inhibit bacteria. Made from 100% natural ingredients, it has no Sodium Laurel Sulfate (SLS) or bleach and is free from added sugar, artificial flavours and colours. Grin Natural Products www.grinnatural.co.nz sales@grinnatural.co.nz 0800 474 646 FMCG BUSINESS - JUNE 2017

[ good business ]

Tesco takes the fuss out of finding the right food

Supermarket chain Tesco has announced a partnership with Spoon Guru to help its customers with specific diets and tastes quickly and easily find food suitable when shopping online. It marks the latest step in Tesco’s efforts to make healthier choices a little easier for customers, colleagues and communities across the UK. By adding Spoon Guru’s innovative online technology and expertise in nutrition to Tesco’s online shopping platform, Tesco.com, shoppers can more easily make food choices that exactly fit their individual

food preferences. When shopping online, Tesco customers will be able to filter their food searches, including food intolerances, such as lactose or nuts, and specific dietary requirements including vegetarian, vegan, low fat, and low salt. The new service will be available on the Tesco.com mobile app before being rolled out to its full online platform soon. Markus Stripf, CEO of Spoon Guru, comments: “We know from our own research that 54% of UK adults followed a diet in 2016. Whether due to a lifestyle choice, allergies or intolerances, Britain’s dietary needs are vast and using technology like Spoon Guru, retailers can make shopping much simpler, easier and a more pleasurable experience.” Spoon Guru covers over 180 food preferences including an array of wellbeing diets, lifestyle diets, food allergies and intolerances. Spoon Guru Diets covered by Tesco at launch are: lactose free, dairy free, gluten free, vegetarian, vegan, low fat. Spoon Guru diets covered by Tesco Phase 2 include: lacto-vegetarian, low sugar, organic, ovo-vegetarian, paleo, pescetarian, kosher, halal, low salt, low sugar, low saturate. Earlier this year Tesco launched its ‘Little Helps to Healthier Living’ campaign, including lower prices on hundreds of products, including fruit and vegetables, and helpful ‘little swaps’, many of which contain lower levels of salt, fat and sugar than the standard alternative.

High tech upgrade for FRENZ New Zealand’s pioneering freerange egg company FRENZ has a new state-of-the-art egg grader operating at its Pukekohe sorting shed. The grader has the ability to increase export opportunities for FRENZ by cleaning and sanitising its free range eggs, as well as efficiently sorting and packaging eggs for international markets. FRENZ officially celebrated the new technology at their premises in May, with Food Safety Minister David Bennett, Andrew Bayly, MP for Hunua, invited guests and farmers from the FRENZ network in attendance. FRENZ’s new grader can sanitise eggs, making them ‘Kitchen Safe’. The eggs are hygienically washed, dried and UV sanitised to produce a germ-free exterior. The eggs are then coated in a natural oil to prevent bacteria from entering the internal egg through the porous shell. 34

FMCG BUSINESS - JUNE 2017

(L to R) Andrew Bayly, MP for Hunua, Roby Darby, Director of FRENZ and Food Safety Minister David Bennett.

[ good business ]

Butterfly chicken dinner earns family $10,000 New Zealand chicken shoppers from across the country entered Ingham’s Butterfly Chicken promotion with the hope of becoming winners. The promotion, now in its fifth year concluded in April with 11 lucky winners walking away with cash or a brand-new Weber Q2000 BBQ. Erin Edmonds from Silverdale, Auckland was the lucky grand prize winner of $10,000. She was ecstatic to be presented her prize by Ingham’s Shane Young and her local Silverdale Pak’nSave team Rhys Brown butcher manager and Vinod Bhaga owner/operator where she purchased the product. Ingham’s Enterprises General Manager of Marketing and Sales, Jerem Wylie says the promotion has been a very successful summer campaign with entries and sales volume well up on the previous year. “It is always rewarding to see the amount of engagement we get from shoppers during this summer promotion. We want to thank all the entrants for participating and we extend our congratulations to the winners,” he says.

(L to R) Rhys Brown, Pak’nSave Butchery Manager, Vinod Bhaga Owner/Operator, Erin Edmonds (prizewinner) and Shane Young, Ingham’s Foodstuffs Sales Representative.

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[ FGC ]

New Bill not so cool?

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

FMCG BUSINESS - JUNE 2017

consumers were surveyed on CoOL it’s doubtful hile many were surprised Parliament these categories were what they were asked voted to send the Consumers’ Right to consider. to Know (Country of Origin of Food) Many of the products caught are ones Bill to select committee, the result wasn’t so hard New Zealand does not produce locally – and to predict. consumers generally know that. Coffee is an In a soundbite world, CoOL could be seen important example because it’s a big part of our as one of those motherhood and apple pie lives (along with tea). issues (even the acronym sounds, well, cool) As captured by the bill, coffee is a singlethat politicians don’t want to vote against in component product. Beans are sourced on a election year. global market, depending on weather, price and To be fair, had the bill stuck with fresh fruit availability, and blended to create the expected and vegetables, it could have gained widespread taste. While the taste is the same, the beans could industry support. But without major carve-outs come from a range of regularly changing sources. for certain categories and rewrites of its cloudy clauses, it should not become law. Closer scrutiny Coffee is the second most-traded food commodity and the beans could come from 70 countries. of Green Party MP Steffan Browning’s bill reveals New Zealand coffee companies tend to source big problems for families and food companies. from the 10 major producers, including countries As drafted, it has an impossible scope, such as Vietnam, Indonesia, Brazil and Ethiopia. unintentionally capturing many products, Because of the way coffee is processed, a packet containing ambiguous clauses, and creating an of instant coffee could contain beans from many administrative nightmare for companies making countries blended to deliver the consistent taste affordable staple foods. consumers expect. When CoOL reform was first mooted, its aim Keeping up with an ever-changing global was to provide information about where fresh supply and labelling for every batch of coffee fruit and vegetables came from. Fair enough. To a would be a huge, if not certain extent, the campaign impossible, challenge. for greater labelling has Events such as weather, been superseded by actions disease, war, and already taken to implement political turmoil can CoOL. Countdown, New affect availability or price World and Pak’nSave’s of beans. Maintaining voluntary labelling of fresh THE BILL PROPOSES segregation on a massive produce has been in place scale or regularly refor years. Shoppers can MAJOR PROBLEMS labelling the origin of walk into any supermarket FOR SIGNIFICANT blends would be a task and see labels telling them the bananas are from the PARTS OF THE FAMILY where the benefits would outweigh the desires Philippines and the potatoes FOOD BUDGET.” of consumers. are from Oamaru. I can’t see legislating for Unfortunately, the more expensive cups of coffee - impacting every Greens expanded the bill to cover every singlehome, work break or café - being an election component food sold in New Zealand. This has platform winner. More likely the opposite, and it’s made it either impossible or cost-prohibitive to just one category. implement for a number of processed foods. If the bill makes it into law without carving Problems arise, not for fresh fruit and out the categories that would be unintentionally vegetables, but for other everyday grocery categories which have never been poster-products caught, there would be major additional supply chain costs. And that’s only if companies wish to for the debate. re-label for New Zealand, a market so small the The bill proposes major problems for value of doing so would be marginal. significant parts of the family food budget, such While it seems most voters are in favour of as coffee (instant, capsules), tea, sugar, flour, CoOL for fresh fruit and vegetables, they may pepper, cooking oils, oats, spices and other not be so keen if it raises the cost of tea, coffee, popular staple foods. The way it’s drafted, it pepper, flour, breakfast cereals, and sugar. could catch many breakfast cereals, too. When

[ legal advice ]

New immigration rules for NZ

hard-pressed to maintain their margins. Similarly n 19 April 2017 the Immigration Minister any new business expecting to use migrant labour announced changes to the immigration will be faced with stronger headwinds from having rules. These changes relate to the skilled to potentially expend more on labour. migrant category where people wanting to work Perhaps more critically, because of the 3-year and live in New Zealand must garner sufficient cap on low-skilled migrants, there may be higher points to meet a qualification threshold. They take forced turn-over of staff at a time when they have effect from 14 August 2017. been trained and become more efficient after three The impetus for these changes include the years on the job. perceived pressure on infrastructure and concerns about low-skilled migrant labour inhibiting wage growth Reactions and taking away opportunities A group called the for local workers. The National Hospitality Industry government has reasoned that Advocates has started fewer overseas students will an online petition to be coming to study low-level oppose the changes to the ASB HAS PREDICTED immigration rules with over qualifications and seasonal workers would stay for a more 5,000 signatories so far. THAT MIGRATION targeted period of time. The reaction from INTO NEW ZEALAND opposition members of The intended consequences include that fewer people will parliament has been that the WILL REMAIN stay in Auckland, more migrants changes are mere tinkering STRONG FOR THE will look to the regions where and will not alleviate the NEXT THREE YEARS.” strain on public services and there may be labour shortages, and the skill composition of the infrastructure, with both skilled migrant category will Labour and New Zealand be weighted towards higher-paid and higherFirst promising to do more to restrict immigration skilled migrants. numbers and offer real respite from strained public services and infrastructure. ASB has predicted that migration into New Income a determining factor One of the principal takeaways from the changes is Zealand will remain strong for the next three years and this outlook remains unchanged. that income will be a bigger factor in determining whether points are available for skilled work. The median income in New Zealand is about $48,859 per annum. If an applicant will earn less than the median then they will get no points under the skilled migrant category, even if the job was previously considered skilled. Lower-skilled visa holders will be limited to three years after which a stand-down period will apply. In contrast, if an applicant will earn more than $73,299 per annum, which is 1.5 times the national median, the applicant will receive points even if the job was previously not considered skilled. This income equates to about $35.24 or more per hour (based on 40 hours per week for 52 weeks).

Aman Prasad Commercial Solicitor STEINDLE WILLIAMS LEGAL LIMITED www.swlegal.co.nz

Unintended consequences Many applicants will not earn over the median income and many more will not earn over $73,299. Whereas the rules are not retrospective, there are concerns that many existing businesses which may be reliant on migrant labour will be FMCG BUSINESS - JUNE 2017

It’s all in the packaging!

Head of Shopper Marketing Strategy at Energi, Lew Bentley, shares notes from the retail front line.

’m hopeless. As a foodie and a strategic planner for a shopper marketing agency, a trip to the supermarket is never quick and always full of delight. I’m one of those people that gets lost in the aisles. I double-back. I triple-back. I rarely buy on price, although sometimes I do when I feel the need for a bargain. I love trying new things. I’m a sucker for tasty samples. And I am a seasoned professional at watching how shoppers behave. The beauty of supermarkets is that they are so full of diverse experiences, from bountiful fruit, to bready aromas, to exotic spices, to the comforting softness of squidgy toilet tissue. One of my favourite places is the cooking oil aisle. Like many sections it has blossomed of late with new product development. It has rapidly evolved from a few staples to a fabulous array of masterchef delights, flavoured infusions, and layers of value. 38

FMCG BUSINESS - JUNE 2017

A lot of cooking oil brands have adopted wine cues such provenance, single sources, craft extraction processes, evocative Latin imagery and seductive tasting notes. For the pleasure of the chef at home it has drawn more from the deli than the dairy. For the shopper, the cooking oil shelf offers a lot, and it also asks a lot. It engages and demands that you look before you buy.

Lew Bentley

It wants you to spend a few moments to think about your food and the flavours you consume. Its path to purchase arrives at a destination that promises deliciousness. But not the other day. Standing in front of the cooking oil aisle I looked and looked, but my ‘go-to’ olive oil, my culinary friend of several years, was missing. Disheartened, I began searching for a replacement; of which there were many that met my brief. Then, just before I was about to substitute, I found it. My old favourite, but in a totally new packaging design. It had lost its shape. Its familiar and confident identity had become something strange and flimsy looking. They had changed its choice architecture and removed its helpful matching of variants to food. The effect was that I had nearly lost my favourite brand in plain sight.

[ feature ] The incremental approach A couple of years ago I experienced another such example. A prominent food manufacturer with a category captain brand of several decades was ringing the alarm bells. They had been suffering a long slow decline in sales, being chipped away at by new high value products and undercut by price fighters. Meanwhile, they had underinvested in their cash cow for several years. In order to turn things around, they spent heavily in new packaging design and advertising to make their brand more attractive. Unfortunately, these major changes were not tested in research. Instead of creating a lift, the brand fell off the sales cliff. My brief was to help them solve the problem and set them back on track. The first conclusion was that the reason for the long slow decline and the reason for the sharp plummet were different. The long slow decline was the result of under-investment in an active, innovating category. Their strong brand had slipped

behind in terms of product innovation and brand salience. It needed re-invigorating not re-inventing. The reason for the sharp plummet in sales was that the packaging solution created a radical change that – like my olive oil – made the brand invisible on shelf to its loyal buyers. With an effective absence on shelf, shoppers simply substituted with other comparable brands in droves. In my in-store research, I stood in front of the shelf alongside shoppers who literally could not see their preferred brand sitting right in front of them. To rub salt in the wound it emerged that the expensive new packaging design turned out to be a close copy of a similar product in a foreign market.

While there are certainly times when a major makeover is required for a brand, there is a real risk of confusing and losing existing customers with radical change. An incremental approach is often a smarter way to go. The Apple logo story is a perfect example. The original logo was completely hideous and lived a mercifully short life. At that point it needed a revolution. But once they adopted the bitten apple symbol, a path of managed continuity has kept the market in step with the brand’s evolution over the past 40 years. The moral of the story is that in trying to give shoppers something new with your brand development, be careful with what you take away.

NEW CHUPA CHUPS SURPRISE DESPICABLE ME AVAILABLE NOW Contact your DKSH New Zealand Limited representative for more information.

[ marketing ]

I didn’t miss the boat, it hadn’t arrived!

Dale Spencer Publisher of FMCG Business and Hospitality Business Director of media planning/ buying agency Media360 dspencer@intermedianz.co.nz

FMCG BUSINESS - JUNE 2017

Fast-forward a few years and I was lucky t’s 1996. The internet is, as yet, an enough to work within the advertising agency unknown force. team launching woolworths.co.nz (morphing To the 25-year-old me it seemed the later into countdown.co.nz) to an unsuspecting opportunity of a lifetime was just getting started Kiwi audience still just a tad untrusting of and the potential endless. handing money over on this interwebby thing. Rather than consider the big picture and More of an issue as a Media Planner at the time create Google, Amazon or even Trademe at that was how to make people click through to the early stage, it seemed the perfect time to launch website without that many other website options something completely opposite. Small, local and to advertise on! So TV, instore and billboards something that would help ex-pats around the were the preferred media. world get easy access to Kiwiana in one handy Now to 2017. place. And so www.buykiwi.co.nz was born. I am still planning and buying media, but now Some may say that was short-sighted and they with an additional handle as Publisher here at would be right! FMCG Business. With the grandiose goal of making a fortune The Countdown trucks are now zipping from this tiny, niche market, it was soon clear around busily demonstrating that it was not to be. We that the idea was right, struggled with high postage even if it took a few years to costs, ineffective couriers, catch on. groaning (well, screeching) Digital is no longer dial-up services and quite anything new, it is just part frankly, an audience that was of a communications mix too small and just not ready rather than anything separate for it. CONSIDER THERE to consider. Programmatic Consider there are now 3.6 ARE NOW 3.6 buying is the buzzword of the billion internet users globally, nearly half of the planet - and BILLION INTERNET moment and social, oh social how we all love you! growing like wildfire! In 1995 USERS GLOBALLY, The days of TV and a mere 0.04% of the world newspaper dominance have were online and from our small NEARLY HALF OF truly passed with over a third pond you’d have to think the THE PLANET.” of New Zealand adspend now numbers were in the small tens focussed in digital. of thousands. In the publishing world, Editors who At buykiwi.co.nz you could buy a classic old previously had a print product as their main Kiwi ‘Chup and Dup’ pack for $5.75 – BUT it concern are required to deliver engaging social cost more than $25.00 to send by snail mail to posts, weekly e-newsletters and more content London at the time and it would take more than than you can poke a stick at, as part of their six weeks to get there! Can you see where things daily routine. became unhinged? It’s great to see that fmcgbusiness.co.nz The off-the-shelf software package yawned its continues to grow every month, over 7,000 of way through the buying process causing constant frustration to users and the team of one (me) here you want an e-newsletter every week and now more than 5,000 of you are following us on one in NZ. That’s not entirely true, the ‘warehouse’ social platform or another. Proof that a niche pick and pack setup at the parent’s house worked product can succeed in the digital space. a treat! So all hail the internet, it’s made our lives Astoundingly, the website won Export Awards easier, harder, more pressurised, less sociable and in its day, got its share of fawning PR and was more ‘sharey’ but as a publisher, media planner proudly held up as an example of how New Zealand might gain access to a global market with or marketer its power can’t be ignored. The challenge and opportunity remains minimal cost… so it wasn’t a complete waste of though. How many of us are making that fortune energy and time. on a global scale from New Zealand? The dream ended 18 months later with a mere Not enough, we just need to think bigger. $3000 in the bank and an emotionally drained family close behind.

EVENT DETAILS Saturday 23rd and Sunday 24th September 9am â&#x20AC;&#x201C; 5pm, The Cloud, Queens Wharf, Auckland

The Chocolate & Coffee Show is back!

ANNOUNCING NEW FEATURES FOR 2017!

Planning is in full swing for The Chocolate and Coffee Show 2017 with a swag of new features, big names and competitions to entertain more than 8,000 passionate foodies. Enquire now about Exhibitor Stands, Sponsorships and partnerships! In the Demonstration Kitchen we are delighted to announce Julie LeClerc and Sam Mannering showing off their culinary skills along with the as-yet-unknown Pastry Chef of the Year 2017, an Art of Plating Masterclass from the team at Milse and more. Television presenter, radio announcer and all-round good guy Mike Puru is coming on board to be the official Chocolate and Coffee Show Master of Ceremonies through the weekend.

Julie LeClerc

Sam Mannering

Mike Puru

Barista Academy

The Barista Academy is joining the show to run the new Barista Zone with workshops and training for the 8,000+ consumer visitors attending the show. Luke from The Chocolate Bar in Wellington has joined forces with the show to introduce a new ticketed feature with Tea and Craft Chocolate Tasting Sessions from his vast array of chocolates and working with Fine and Dandy Tea, no doubt will be a crowd favourite!

STAKE YOUR CLAIM NOW FOR A GREAT POSITION AT THE CHOCOLATE AND COFFEE SHOW 2017 To discuss bringing your brand to life at The Chocolate and Coffee Show, please contact

The Chocolate Bar

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

Angela Bowes abowes@intermedianz.co.nz 021 130 6824

Dale Spencer dspencer@intermedianz.co.nz 021 361 136

[ events ]

Meet our Outstanding NZ Food Producers!

panel of ten expert food judges tasted more than 150 products from 82 growers, farmers and crafted producers, to determine the winners of the inaugural Outstanding NZ Food Producers’ Awards. FMCG Business Publisher Dale Spencer got amongst it at the Outstanding NZ Food Producers’ Awards presentation at the Fresh Factory in Auckland recently. He says: “A very professionally run event from the team at Marvellous Marketing and interesting, inspiring stories from all of the winners.” Here is a quick summary of some of the highlights.

SUPREME WINNER - NZ LIFE & LEISURE OUTSTANDING NZ FOOD PRODUCER Absolute NZ Meat, Absolute Angus, Porterhouse Absolute Angus is the brand East Cape farmers Sean and Jodi Brosnahan developed for their pure NZ Angus stud, bred from the original Resurgam Aberdeen-angus breed. Sean developed this Supreme Award Winners Sean and Jodi pedigree herd over more than Brosnahan of Absolute NZ Meat. 20 years, using old-fashioned farming. Use of biological fertiliser on the rolling hills creates good grass allowing cattle to be 100% grass fed and calves stay on their mothers for their first 10 months. This goodness and lack of stress grows meat richer in taste. The judges raved about the flavour with one declaring it was a taste of her rural childhood. absolutenzmeat.com

CATEGORY WINNERS AND RUNNERS-UP OUTSTANDING PRODUCER DAIRY PRIMARY Jersey Girl Organics, Jersey Girl Organic Whole Milk The pedigree jersey herd on the lush green Matamata grass of the Vosper family property is organically farmed. The A2 milk they produce is pasteurised but not homogenised and its bottled onfarm in an energy-efficient purpose-built dairy. The judges agreed: this is milk that tastes like milk used to. jerseygirlorganics.co.nz

flavour and sweet finish. According to the judges the complex flavours made this cheese a standout. Whitestone was also a finalist for Vintage Five Forks, Windsor Blue and Lindis Pass Camembert. whitestonecheese.com Joint runners-up Clevedon Valley Buffalo Company, Buffalo Mozzarella Judges raved about this mozzarella calling it lush and creamy with a delicious texture. clevedonbuffalo.co.nz Wooden Spoon Boutique Freezery, Movie Night Ice Cream The judges couldn’t stop eating this ice-cream! An ice cream made with love and care that delivers innovative beautiful creamy flavour with surprise nuggets of caramel popcorn. woodenspoonfreezery.com

FRESH.CO.NZ OUTSTANDING PRODUCER EARTH PRIMARY Farm Eighty4, Heirloom Tomatoes  Brent and Amanda Daw grow 80 varieties of heirloom tomatoes on their Waitakere property, Farm Eighty4. Bred from pre-1960s seeds selected for their flavour and unusual appearance, the tomatoes are grown in coconut husk and are spray-free. Our judges loved the variety of shape, size and colour, noting they were juicy and each variety was noticeably different in flavour. https://www.facebook.com/eighty4limited/

FRESH.CO.NZ OUTSTANDING PRODUCER EARTH CRAFTED Fix and Fogg, Dark Chocolate Peanut Butter After much experimentation, Roman and Andrea Jewell, started Fix and Fogg commercially in 2014 and love making every jar from start to finish in Wellington. Dark Chocolate Peanut Butter takes Fix and Fogg’s hand-crafted peanut butter and blends it with Whittaker’s 62% dark Ghana chocolate for a delightful marriage of flavours. Judges said it was well roasted, slightly salty and deliciously crunchy. fixandfogg.co.nz Runner-up - Paneton Bakery, Paneton Flaky Puff Pastry Made with love. The judges said they knew it was genuine and were thrilled they could taste the butter, which ensures this pastry delivers puffy, crisp deliciousness. panetonbakery.co.nz

OUTSTANDING PRODUCER DAIRY CRAFTED

OUTSTANDING PRODUCER PADDOCK PRIMARY

Whitestone Cheese Company, Vintage Windsor Blue Milk for Whitestone cheese comes from cows grazing pasture atop of limestone soils and this is combined with their blue culture developed in-house from the same strain found in the famous Roquefort caves. These elements give this cheese its distinct

Absolute NZ Meat, Absolute Angus, Porterhouse Absolute Angus is the brand East Cape farmers Sean and Jodi Brosnahan developed for their pure NZ Angus stud, bred from the original Resurgam aberdeen-angus breed. absolutenzmeat.com

FMCG BUSINESS - JUNE 2017

OUTSTANDING PRODUCER PADDOCK CRAFTED The Prodigal Daughter, Spicy Sicilian Sausage Rachel Priestley aka The Prodigal Daughter makes fresh salsiccia (sausage) and cures whole cuts for Pancetta, Prosciutto, Coppa and Bresaola. Using wholly free-range meats and traditional Italian methods with no preservatives, sugars or nitrates. The Spicy Sicilian Sausage is coarse-cut, pork enriched with back fat and spiced with cumin, coriander, chilli and paprika. The Prodigal Daughter was also a finalist for its Coppa and Bresaola. lapancetta.co.nz

LABEL & LITHO OUTSTANDING PRODUCER WATER PRIMARY Cloudy Bay Clams, Wild Harvested New Zealand Diamond Shell Surf Clams Managed under quota, the wild harvest surf clams business was established more than 25 years ago by Ant Piper who developed machinery to gently lift shellfish from the seabed. Dion Brown accepts the Now run by his sons Isaac and Award for Cloudy Bay Clams. Aaron, the business is certified by the international sustainable seafood scheme Friend of the Sea. The succulent sweet flavour and plump texture of Cloudy Bay Clams’ diamond shell surf clams was a hit with our judges. cloudybayclams.com

Events 2017 JUNE 4-5 NATURALLY GOOD EXPO ICC Sydney Exhibition Centre Sydney, Australia naturallygood.com.au

JULY

SPIRIT OF NEW ZEALAND Keewai New Zealand, Live Freshwater Crayﬁsh Farmed naturally in crystal clear southern fresh water, Keewai is an outstanding story of ingenuity and innovation. Farming of the endangered freshwater crayfish species koura began after forestry company Ernslaw asked what could be done to utilise its fire ponds in the forests of Otago and Southland. Our judges declared Keewai koura delicious with a subtle flavour and beautifully soft flesh.

PEOPLE’S CHOICE These winners were chosen by popular vote by Kiwis. T & G GLOBAL OUTSTANDING FOOD REGION Hawke’s Bay L’AFFARE OUTSTANDING PRODUCER Fix and Fogg Peanut Butter Makers Runner-up - T & G Global BEEKIST ® Tomatoes OUTSTANDING FARMERS’ MARKET Otago Farmers Market Runner-up - Feilding Farmers Market OUTSTANDING SPECIALTY FOOD STORE OR SUPERMARKET Director Janene Draper with the Award for Farro Fresh Foods. Farro Fresh Food

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

30-1 SEPT. ANUFOOD Peking, China www.anufoodchina.com

SEPTEMBER 2 GROCERY CHARITY BALL The Langham Auckland, NZ 23-24 THE CHOCOLATE & COFFEE SHOW The Cloud, Auckland www.chocolatecoffeeshow.co.nz

AUGUST

OCTOBER

1 NZ BAKELS SUPREME PIE AWARDS www.nzbakels.co.nz

7-11 Anuga Cologne, Germany www.anuga.com

23-24 C&I EXPO Co-located with AACS Convenience Leaders Summit, AACS Peter Jowett Convenience Industry Awards Judging and AACS Gala Awards Dinner Sydney, Australia www.candiexpo.com.au

28-29 HEALTHY FOOD GUIDE LIVE! Incorporating the Gluten Free Food & Allergy Show Pioneer Recreation & Sport Centre, Christchurch www.healthyfoodlive.co.nz/ directory/gluten-allergy-show

Visit the websites and contact the event organisers for further details and updates. To have your event listed in FMCG Business email: trubanowski@intermedianz.co.nz. FMCG BUSINESS - JUNE 2017

[ social sphere ]

Out & About

a kapa haka at nds School perform Students from Beachla nds store. chla Bea â&#x20AC;&#x2122;s own ntd of Cou the oďŹ&#x192;cial opening

(L to R) Nadia Lim, Co-founder of My Food Bag with Co-CEO Cecilia Robinson, Prime Minister Bill English, Co-founder of My Food Bag Theresa Gattung, and Co-CEO of My Food Bag James Robinson.

Prime Minister Bill English and Nadia Lim of My Food Bag cook up a storm as the company celebrates its big new prem ises in Auckland.

brated the launch The LOSCAM team cele ei with more Taip in an Taiw of LOSCAM nce. nda atte in sts gue than 100

SNAP & WIN! 44

FMCG BUSINESS - JUNE 2017

Has your team moved to new premises, or been part of a fun event, great harvest, or promotional activity? Send us your favourite snapshots to be in the draw to win the full Donovans Cluster range! NZ chocolate company Donovans has paid homage to a Kiwi classic with their new Toasted Coconut Clusters (Donovans 35% milk chocolate with toasted coconut thread). For more visit www.donovanschocolates.co.nz

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

BEER & CHEESE

WOMEN IN BREWING ■ ORGANIC WINEMAKING ■ MEET THE INDUSTRY NEW ZEALAND’S LARGEST LIQUOR AUDIENCE

[ editorial & news ]

The business of brewing I THINK it’s fair to say that the Kiwi brewing and distilling industry has been very male-dominated in the past. But times, my friends, they are a-changin’. Craft beer and premium spirits have steadily The Shout Editor Charlotte Cowan increased in the market and so too have the number of women working in the industry. But just how many Kiwi women are in the business of brewing? Tash McGill finds out on pgs 48-49. In other brew news, if you’re looking for something a bit different in the world of beer, award-winning writer Neil Miller shares his favourite beer and cheese combos (yes, it’s really a thing) and we chat to Black Dog Brewery Manager Adrian Kemp about their latest range of experimental beers (how about some coffee stout?). And for our wine lovers, Cameron Douglas MS explores organic winemaking in New Zealand and takes an in-depth look at Riesling. Before you head off to explore this month’s issue, have you signed up to our dedicated fortnightly eNewsletter yet? Get more of New Zealand’s liquor news straight to your inbox, just head to www.theshout.co.nz and follow the prompt. And don’t forget to ‘like’ us on Facebook @theshoutnz

PUBLISHED BY The Intermedia Group Ltd 505 Rosebank Road, Avondale Auckland, 1026, New Zealand ph: 021 361 136 MANAGING DIRECTOR-PUBLISHER Dale Spencer dspencer@intermedianz.co.nz EDITOR Charlotte Cowan ccowan@intermedianz.co.nz ph: 021 774 080 SALES MANAGER Angela Bowes abowes@intermedianz.co.nz ph: 021 130 6824

FMCG BUSINESS - JUNE 2017

Nielsen expands Liquor Benchmark in NZ NIELSEN HAS announced the expansion of its Liquor Benchmark, with the addition of Super Liquor to the liquor measurement service. The Liquor Benchmark now includes retail sales from 625 traditional liquor stores from the largest retailers - Henry’s, Liquor Centre, Liquor King, Liquorland, Super Liquor, The Bottle-O, The Trusts and Thirsty Liquor. The Nielsen Liquor Benchmark takes weekly retail sales data, at item level, from eight liquor retailers and reports a total view of the market. The benchmark allows retailers and suppliers to compare their performance and identify new opportunities for growth as well as new business generation, without disclosing an individual retailers’ sales information to competing retailers. Commercial Development Director at Nielsen, Geoff Smith, says bringing Super Liquor on board significantly expands coverage of the traditional liquor industry to both suppliers and retailers. “The enhanced Benchmark helps to advance retailer-supplier collaboration with suppliers able to bring proof points around price, ranging, distribution and promotions to their retailer conversations,” he says. “It’s a significant step in measuring and understanding Category and Key Account performance.” “The systems Nielsen has available help to support store activity and growth,” says Bryan Cherry, Marketing and Merchandising Manager at Super Liquor. “The inclusion of Super Liquor into the Benchmark enables us to understand sales results and compare against the rest of the market. It provides an effective two-way communication between suppliers’ and Super Liquor’s performance. Nielsen’s overall approach to supporting the Traditional Liquor market is one of the reasons that we chose Nielsen as our data agent.”

Brewers Guild of NZ Beer Awards: Key dates KEY DATES have been announced for the Brewers Guild of New Zealand Beer Awards, with entries opening on 21 August, 2017. Breweries have until 8 September to get their entries in before the judging takes place from 29 September to 1 October in Christchurch. The conference, trade show, AGM, industry reception, Mashing In and the brewery day tours will take place from Thursday, 5 October to Saturday, 7 October, with the grand

finale – the NZ Beer Awards gala dinner - on the Saturday night. MC’d by South Island comedian, Shay Horay, and taking place at the Air Force Museum of NZ in Christchurch, the formal dinner will see the announcement of the all-important medal winners – and of course, the muchanticipated Champion Brewery award. For more information on the Brewers Guild NZ Beer Awards and how to enter, head to www.brewersguild. org.nz/awards

[ news & industry insights ]

Hawke’s Bay to host 2017 Air NZ Wine Awards

HAWKE’S BAY, New Zealand’s second largest wine region, will play host to the 31st Air New Zealand Wine Awards this November. The annual awards dinner will be held on Saturday, 25 November at the Pettigrew Green Arena in Taradale, and will be attended by New Zealand’s top winemakers and industry figures to celebrate the country’s best wines. The Hawke’s Bay region has been producing award-winning wine since 1851. The region is best known for its Bordeauxblend reds and Chardonnay, with aromatic whites and Syrah also becoming increasingly popular. The region has a wellestablished wine tourism trail that showcases the region’s art deco architecture and artisan producers. The awards dinner will culminate in the announcement of the most coveted prize of the competition, the Air New Zealand Champion Wine of the Show Trophy. Last year, the trophy went to Central Otago winery Lowburn Ferry for their Home Block Pinot Noir 2014. The O-I New Zealand Reserve Wine of the Show Trophy was awarded to the Brancott Estate Letter Series “O” Chardonnay Marlborough 2015. Global Marketing Director for New Zealand Winegrowers, Chris Yorke, says the Air New Zealand Wine Awards dinner is a big night for New Zealand’s wine industry. “Winning a trophy or medal is recognition of the hard work and skill that goes into making the wine, and lets consumers know they are drinking some of the finest wine in the world,” he says. The Air New Zealand Wine Awards is owned and organised by New Zealand Winegrowers, the national organisation for the country’s 1,600 grape growers and winemakers. Entries for the 2017 competition open to New Zealand wineries on Monday, 7 August.

FOR MORE INDUSTRY NEWS FOLLOW US ON

Turning wine into beer TURNING WATER into wine was a miracle. But today, winemakers are turning to brewing and adding craft beer to their product ranges. The attraction is understandable. Beer, quite obviously, is far more diverse than wine, using at least four ingredients and including many different processes. And while mainstream beer consumption is falling, and wine consumption Martin Craig has been relatively stable, craft Brewers Guild of beer consumption is showing New Zealand healthy growth. www.brewersguild.org.nz In the South Island, Giesen Wines has just opened its new brewery in Christchurch, producing Kaiser Brothers beers based on the family’s German brewing heritage. In Hawke’s Bay, Abbey Estate in Bridge Pa also houses Abbey Brewery, which has built a good reputation for its Fat Monk beer range. And Petane Station in Esk Valley has family connections with its next-door neighbour, Zeelandt Brewery. Other brewer/winemaker projects are fomenting in the Hawke’s Bay hills. It’s not just one-way traffic, as brewers look to winemakers for skilled staff. Qualified winemakers are turning up in breweries all over the country, valued for their understanding of the art and science behind fermentation. Brewers have also been turning to winemakers for their distribution contacts, particularly as restaurants and cafés becoming increasingly important markets for bottled craft beer and all its food-matching possibilities. Sacred Hill’s distribution arm, Quench Collective, has an excellent craft beer portfolio including 8 Wired (Brewers Guild Champion Brewery 2011), Funk Estate and Liberty. These building links between winemakers and craft brewers probably reflect a shared audience, as consumers are increasingly looking to beer to provide flavours, experiences and food matches. For years this was wine’s territory and now it has to share. Beer lists are getting bigger, and beer is no longer relegated to the last page of a good wine list! Supermarkets are also contested territory, as Single Alcohol Areas confine wine and beer to a limited and isolated corner of the store. With no opportunity to expand the department, winemakers are developing craft beer brands to preserve their precious space on the shelves. Martin Craig is a beer writer, journalist and publisher of www.Beertown.NZ

CHECK OUT THESHOUT.CO.NZ FMCG BUSINESS - JUNE 2017

THE BUSINESS OF WOMEN IN BREWING

Has there been a huge growth in the number of women involved in the New Zealand brewing and distilling industry? Tash McGill finds out. “WHY IS it that we have treated drinks in a gendered way? Why do we expect women to drink rosé and men to drink whisky?” asks Annika Naschitzki of Tiamana Brewery in Wellington. “Why have we gendered beer and brewing too?” We’re talking about the apparent growth of women involved in the New Zealand brewing and distilling industry and Naschitzki agrees that yes, even in the few years since she began Tiamana, the numbers are going up. “But my question would still be why are there so few? Why isn’t this a 50/50 industry? It feels like we’re only just coming out of the shadow of being a gendered industry,” she says. “My father was a brewer in Berlin and when I started out, I learned as much as I could from him. I nearly named my brand ‘The Brewer’s Daughter’ but I didn’t want a gendered beer or people to assume I would make girly beer.” By Naschitzki’s estimation (there is little published hard data to rely on) there are now six to seven prominent women brewery owners of some 360 breweries in New Zealand. But behind the scenes there are dozens more women who are head brewers, lead brewers and distillers across the country. In the rocketing craft brewing and distilling industries, you’ll find women working independently and collaboratively behind the mash of Garage Project, Keruru Brewing and many more. While the footprint of women in the business is garnering more attention and a spotlight, it’s not as new a phenomenon as you might expect. Tracy Banner of Sprig and Fern has been at the forefront of brewing in New Zealand for some 40 years. Naschitzki’s admiration is obvious, referring to Banner as the “original gangster brewer, back when it really was a ‘proper boy’s club”. For a nation of home brewers and given the explosion of commercial craft brewing, it is surprising that the numbers are so low – but by comparison, some of the biggest and boldest moves in the craft industry have women behind them. Perhaps one of the boldest is Cardrona Distillery, run by Desiree 48

FMCG BUSINESS - JUNE 2017

Annika Naschitzki of Tiamana Brewery Image credit: Jed Soane/thebeerproject.com

Desiree Whittaker of Cardrona Distillery

Whittaker and making whisky, gin and single malt vodka in Cardrona Valley. After a successful career in share-milking, Whittaker was looking for a business opportunity and a new start. When it came time to determine what she wanted to do after share-milking, there were lists, short lists and plenty of research but eventually

her love of whisky came to the forefront but it was the business idea that came first, followed by learning distillation methodology and chemistry. “Cardrona is all about making great spirits, not cutting corners. So in my plan to make lovely whisky, we also needed to be able to make other lovely spirits that could support the whisky while it ages for 10 years,” says Whittaker. It’s this business planning and prowess that has brought the site together and created a family business that makes single grain vodka, gin, liqueurs and of course, a warehouse of aging malt. Success in the industry is driven by an aptitude for decision making and business strategy just as much as brewing itself, which is a point of difference in which women appear to excel. One of the most consistent themes is the importance of business acumen and skill in taking a passion for brewing and distilling into a viable business. Naschitzki’s business partner, Llew Bardecki of Wild and

[ feature ] Woolly Brewing, has recently decided he loves the creativity of brewing more than the administration of running the business, which has led to some changes, but Naschitzki is characteristically philosophical and has taken it in stride. Similarly, Rachel Thomson of Thomson Whisky describes her role in the business as being, in simple terms, General Manager. “My role is to clear the path of all obstacles - be they financial, logistical, brand, or other,” she says. “Being open to this higher purpose on a daily, monthly, yearly basis really helps me be flexible, utilise all my skills, think outside the box, and do whatever is needed to achieve our goals, instead of being stuck in a specific title. I love the challenge and the focus on finding solutions.” Since she and husband Matt started the business in 2009, they have evolved from independent bottling to distilling on-premise at Hallertau brewery in West Auckland, with further changes ahead for the brand. Both Thomson and Whittaker have young children but seem to take the challenges of motherhood and business ownership in stride. In addition, Whittaker says she found no gender barriers in the entering the business and plenty of people who welcomed and opened doors for her in both training and finding equipment. Naschitzki agrees mostly – the Wellington craft brewing community has been supportive and many brewers have become friends. “Sometimes people do want to give you more of a spotlight but I don’t want glory because of my gender. It’s more annoying when people are condescending than when they are ignorant which happens at festivals and events like Beervana. Customers assume you’re a volunteer and not the brewer, or tell you things like women have better palates anyway. Why does my palate have to have a

Rachel Thomson of Thomson Whisky

SOMETIMES PEOPLE DO WANT TO GIVE YOU MORE OF A SPOTLIGHT BUT I DON’T WANT GLORY BECAUSE OF MY GENDER.” ANNIKA NASCHITZKI, TIAMANA BREWERY gender? We all have to learn our palates and constantly improve,” she says. But that’s much more from customers than other members of the industry. “I was taught it’s all about commanding respect not demanding it. If you are in it because you love beer and you find it interesting to run a craft business, then do it,” says Naschitzki. “Treat gender as kindly as you can - we can’t run away from that fact until the industry is 50/50. I only ever want people to judge me on the quality of my work, both the beer and the way I run my business. If you focus on that then people quickly move past gender, when you are busy doing your job and having fun.” While the distilling industry in New Zealand is small, Sarah Bonoma of Dancing Sands Distillery in Takaka, Nelson, says it’s collaborative and friendly. “We spend time building relationships with others who are doing the same. There are limited opportunities available, both for men and women,” she says. “Recently a young student doing her Diploma in Brewing and Distilling got in touch with me and wanted to see what a real distillery was like. It was fantastic to see the

Sarah Bonoma of Dancing Sands Distillery

Annika Naschitzki of Tiamana Brewery

enthusiasm she had for the industry and we want to encourage that as much as we can.” Dancing Sands boasts not one but two female distillers on the team, but Bonoma says people are less surprised they have two women working in the distillery than they are that their gin, rum and vodka is all made on-site. “I joined the business full-time in December 2016 and I’ve been learning on the job ever since. I’ve read a lot about distilling and different methods but there is no substitute for getting your sleeves rolled up and getting stuck in. Now I get to make our products but also run our business, which brings a lot of challenges and new skills to master,” she says. Hannah Bower of Zeffer Cider might echo the same sentiment about business leadership and innovation. From a small market business in Matakana in 2009, Zeffer Cider is now producing 1000 bottles a day and looking to develop its global export arm into China and Thailand in addition to their existing international business. That’s rapid expansion in a short eight years but she has been steady at the helm of business and operations since the beginning. What does the future hold then? Growth stories like Zeffer demonstrate the market viability and continued trajectory of the brewing and distilling industry for New Zealand both domestically and internationally. But as the women at the heart of the industry will tell you, it’s not just about a love of cracking open a cold one at the end of the day or enjoying a quiet dram by the fire. Women are thriving in this industry through hard-won business strategy and know-how, staying constantly adaptable and motivated to learn. For those who are most successful, they have an equal love of the product and the business, which may just be the X-factor so many of them share. FMCG BUSINESS - JUNE 2017

BEER & CHEESE Queen Elizabeth I, daughter of Henry VIII and Anne Boleyn, once famously declared that “a meal of bread, cheese and beer constitutes the perfect food”. Award-winning beer writer Neil Miller shares why he thinks this is absolutely correct.

HUNGRY BUT unsuccessful hunters have long dined on Welsh Rarebit, which is basically cheese and black beer grilled on toast. The historical joke is that they did not manage to shoot any game so had a vegetarian meal as a result. It is delicious. German revellers dropped the bread out, but to this day still enjoy beer and cheese soup, which is pretty much exactly what it sounds like. For centuries, robust English workers have enjoyed a Ploughman’s Lunch of cold meat, cheese, pickles, mustard and usually a sneaky pint of best bitter. The Swiss invented fondue – melted cheese and alcohol (wine, beer and/or spirits such as Kirsch) and it unexpectedly became one of the global cuisine crazes of the 1970s. Beer and cheese simply go really well together. I have done a large number of beer and cheese matching sessions over the years, with expert cheesemongers and fine chefs. They have been often been surprised at how well the combinations worked because we have all been bombarded with the ‘wine and cheese matching’ anthem for decades. At the tastings, the audience reaction has been overwhelmingly positive and, best of all, it is easy to do.

Here are my top three beer and cheese matches... Blue cheese, chocolate cake and gingernut biscuits with a Dark Stout or Porter This beer and cheese combination will impress your dinner guests and all the ingredients can be readily purchased at any supermarket. The key to the dish is the combination of sweet, spicy and funky flavours that have no right to get along, but actually do. First, find a blue cheese which can, of course, range from mild to wild. How strong the cheese is will determine how hefty the dark beer will have to be in 50

FMCG BUSINESS - JUNE 2017

order to match it. A gentle blue could be paired with Monteith’s Black, a criminally unappreciated beer in my view. More pungent cheeses will need something stronger in the glass such as Invercargill Pitch Black Stout or Three Boys Oyster Stout. Second, put the cheese, chocolate cake or brownie (the richer the better) and classic gingernut biscuits on a plate, then pour tasting glasses of the beer. Here is where things get really interesting. Guests should try the beer, then the chocolate cake, then the beer again – it is an amazing match of complimentary sweet flavours. Then, they should sip the beer again, eat the cake, this time take a bite of the cookie, before having the beer again. The ginger flavour brings in whole new elements. A word of warning, the next step may need the host to do some convincing as dark beer and blue cheese seem to be unusual dance partners. However, the flavours tumble together like an implausible romance film and the sum of the whole is better than each ingredient alone. There is one more combination though. Put a slice of blue cheese on the chocolate cake, crumble a cookie on top and then, as an act of faith, taste all three elements at once. The next sip of beer will be one of the best taste experiences ever. Guaranteed.

[ beer feature ] There is no need to take my word for it. This particular plate was developed in conjunction with noted celebrity chef and all-round sexy beast Martin Bosley. We were trying to decide whether the final dish for a beer and food matching dinner should be Stout with blue cheese or Porter with chocolate brownie. Trying the various draft combinations, one of us (spoiler: it was me) ended up with both in the mouth at the same time and it was magic.

Washed rind cheese and crusty bread with a feisty Belgian-style Tripel Ale The monks at the world famous Chimay Brewery in Belgium have been supporting themselves for more than 100 years by selling beer and cheese. As a semi-silent order, the Trappist monks only talk when absolutely necessary but they have written: “Here, in this heaven of peace and silence where since 1850 Trappist monks have dedicated their life to God, beer and cheeses are made which in themselves gladden the heart of man”. Chimay White (also known as Chimay Blanc or Chimay Tripel) is a bone dry, fruity, spicy 8% ale with just a hint of barnyard. Delicious by itself, it is even better with washed rind cheese and bread with a bit of crunch and character. I particularly enjoy the Kapiti Port Nicholson and Puhoi washed rind cheeses. Similar Belgian-style New Zealand beers include Kereru Velvet Boot and Yeastie Boys Her Majesty. In this instance I am backed up by no less an authority as the New Zealand Specialist Cheesemongers Association who noted: “Washed rind cheeses are best suited to savoury courses where the aromatic, yeasty flavours of the cheese can be matched with yeasty accompaniments such as breads and beers. Washed rind cheeses partner

THE FLAVOURS TUMBLE TOGETHER LIKE AN IMPLAUSIBLE ROMANCE FILM AND THE SUM OF THE WHOLE IS BETTER THAN EACH INGREDIENT ALONE.”

particularly well with European style breads such as heavy rye breads, hearty wholemeal breads and walnut breads. Beer also matches well with washed rind cheeses. Try wheat beers, lagers, and Belgium beers”.

Cheese Fondue with lashings of Pale Ale Disclaimer: I have a serious crush on fondue. Currently, I own 17 fondue sets, some of which date back to the 1960s, and I am not stopping there. There is just one rule: only cheese - no chocolate or other nonsense. My recipe is incredibly simple. Start heating up the fondue pot (though a normal pan will do). Rub the surface with cut garlic and do not be shy. Add a generous slug of Pale Ale. For once in my life I am going to say ‘don’t get too hoppy’ as it can become bitter. Look for something like Croucher Low Rider, Fork Brewing Godzone or Epic Pale Ale. When the liquid approaches a boil add the cheese and a touch of corn starch. Cheese wise, I use a mix of Gruyere, the traditional soft Swiss cheese, with some tasty cheese for contrast. Stir and when the cheese is melted add a sprinkle of nutmeg. The fondue can be eaten from the vessel using toasted bread or, if you really want to, vegetables such as carrot, boiled potatoes or cauliflower. There is a tradition of slightly risqué forfeits if a diner drops something in the fondue pot, but The Shout could not possibly endorse such a practice. FMCG BUSINESS - JUNE 2017

[ Q+A ]

CRAFT BEER’S TOP DOG With a new experimental range hitting shelves this month, Black Dog Brewery is pushing its way to the top of Wellington’s craft beer crowd. We caught up with Adrian Klemp to learn more. Tell us about your new range of experimental beers… Brewtus Coffee Stout is a collaboration with Havana Coffee Works, where we used one of their single origin Bolivian beans to create a silky-smooth stout with a creamy texture and bold coffee hit. We tried a few different blends and settled on this particular one for its smooth, creamy flavour, without too much astringency or bitterness. Special Agent IPA is a single-hopped IPA using one of New Zealand’s favourite hop varieties – Nelson Sauvin. It is a hop with a big flavour, which makes it important to use it wisely as it can easily add too much bitterness into the beer if you’re not careful. Special Agent was one of only three beers to be awarded a Gold Medal at the 2016 NZ Brewers Guild Awards last October. What are the risks and rewards of producing new/unusual craft oﬀerings such as these? Of course, the risks are that a beer will not turn out as expected and in the worst case scenario, we’d have to dump the batch if it is not up to standard. We mitigate the risk by starting with a small batch and then tweaking subsequent batches to get the right brew. Sometimes the experimentation can take us in a direction we never considered, which can be a good thing. The rewards are coming up with a flavour profile which resonates with and sometimes challenges the consumer, while having a point of difference to what others are producing – we like to get people talking about our beers and any variations to standard brewing procedures we may use in producing a beer. People (especially beer lovers) are very active on social media and love to debate and chat about it online. Why was it important to start selling Black Dog brews nationwide in liquor stores and supermarkets? Black Dog is currently very strong in onpremise accounts (bars and restaurants) and we felt we were ready to take on the off-premise market. While the profits are 52

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into people’s homes. We have had a lot of inquiries from people to have our beers in their fridges at home, rather than just in their favourite bar or pub. Have you ever had any big ﬂavour ﬂops? Yes we have, but thankfully not too many. It generally takes a few batches and tweaks along the way until we are happy with a beer and ‘lock the recipe in’. Our customers enjoy being part of our journey and I find they like hearing about why we have changed recipes and processes along the way to creating a beer we are truly happy with. Where do you see the company going in the next few years? After hopefully gaining market share in supermarkets and liquor stores, we’d like to look at exporting. The New Zealand craft beer industry has a great reputation worldwide and I’d like to capitalise on that. The challenge is to get your beers in the hands of consumers in the same condition it left the brewery in. Sadly, beer does not usually travel well as hop flavour and aroma is affected by temperature fluctuations and time spent on the water. Adrian Klemp

THE NEW ZEALAND CRAFT BEER INDUSTRY HAS A GREAT REPUTATION WORLDWIDE AND I’D LIKE TO CAPITALISE ON THAT.” not as great in packaged beer as keg beer, the volumes achievable in liquor stores and supermarkets are such that it becomes a worthwhile exercise from a branding point of view and helping to get our beers

[ book extract ]

WAIHEKE ISLAND: A WORLD OF WINE A STALWART in the New Zealand wine industry, Clare Dunleavy has been a sommelier, ambassador, cellar door manager and now author. Her new book, Waiheke Clare Dunleavy Island: A World of Wine, shares the incredible stories of the winemakers from a wine region that has an abundance of character and characters. Here we share an excerpt from Waiheke Island: A World of Wine on one of the island’s most popular vineyards, Man O’ War.

Matt Allan Man O’ War Wine For Life At the tender age of 17, Matt Allan had to make a choice that would change the course of his life. He already knew horticulture was for him – he had left school at 15 to complete a one-year horticulture programme at Gisborne Polytech. And, as top student, he had landed a prize job working on a mixed orchard with a small vineyard. But the property was being sold to Montana Wines – now Brancott. The question was: should he stay on with Montana Wines or leave to continue working with sub-tropical fruits?

Man O’ War vineyard

His parents had a lifestyle block, planted in avocados and citrus trees, but Matt remembers his dad saying that wine had been around a long time – that he couldn’t go wrong with it. So Matt chose to stay, and Montana kept the vines, ripped out all the fruit trees, punched down posts and planted more vines. Matt learnt everything from the ground up under the wise mentoring of Warwick Bruce. During harvest he’d accompany Warwick on his quality control of contract grape growers’ vineyards, assessing the fruit, sampling juices, talking to the winemakers like Steve Voysey. After five years he wanted to step up, and there were no management vacancies on the horizon at Montana. So he answered an advertisement in the local paper for a job establishing five acre of vines, with room to grow, on some random island he’d never heard of called Waiheke. Thus in 1993, at age 22, he found himself alighting the ferry at Matiatia Wharf on possibly the worst day of weather Waiheke has ever seen. And Matt should know – he’s been out in our weather for decades. He was met by Kim Goldwater who

was consulting for Matt’s new employer, the Spencer family, owners of a 4500-acre farm at what we locals call “the bottom end” of the island. They were looking to diversify into grapes from cattle farming. As they drove across the island in Kim’s tiny yellow van, rattling along gravel roads and winding their way around the rolling hills, Matt could not see himself planting grapes anywhere. His heart was sinking fast. But as soon as they arrived on site his spirits lifted. They drove to where his future home stood at Man O’ War Bay. (The bay was named by Captain Cook in 1769, who noted in his journal that the kauri trees he saw on the cliffs would be ideal wood for the masts of the Man O’ War battle ships of the Royal Navy.) Then Kim and Matt carried on inland to a sheltered site where people were busy banging posts in the foothills of Stonybatter. And that initial vineyard still exists today. Matt was very excited by what he saw and immediately felt a connection to the land. Waiheke became home. © Waiheke Island: A World of Wine By Clare Dunleavy Published by Beatnik Publishing, RRP $69.95 Beatnikshop.com

Matt Allan Image credit: Marti Friedlander

FMCG BUSINESS - JUNE 2017

THE NATURAL WAY: ORGANIC WINEMAKING Long before interventionist winegrowing and winemaking became common, organic practices were the ‘norm’, explains Cameron Douglas MS. THE GROWTH of organic viticulture and organic wine production in New Zealand has been significant over the past decade-and-a-half. As this article goes to print, around 10% of New Zealand wine producers hold Organic Certification for their vineyards. Some of this growth stems from successful sustainability practices, however much of it comes from a foundation philosophy that a vineyard can work in harmony with the rhythms and processes of nature. A few of the wellestablished and very successful producers who subscribe to this philosophy include: Churton, Felton Road, Hans Herzog and Millton Wines. Other producers are close to full certification – some of these include: Villa Maria, Dog Point, Mahi and Neudorf. Even more producers are simply practicing organic farming or parts of it and do not want the certification. The meaning and application of the term ‘organic’ is well ingrained in everyday wine and food language and a term often used for advertising the health benefits of all products it is attached to. From the 54

FMCG BUSINESS - JUNE 2017

Cow’s horns are ﬁlled with cow dung and buried in the ground for several months. Image credit: Pyramid Valley

organic vegetables, eggs and coffee beans we buy at the local market and even some supermarkets, to the farming methods adopted by vegetable, fruit and dairy growers - the list is long when ‘organic’ is mentioned. Winegrowing has long been associated with organic practices, for many hundreds of years in fact. Long before interventionist winegrowing and winemaking became common, organic practices were the ‘norm’. Interventionist practices have been used, and still are, to speed up vineyard production and crop size successes. While there is nothing wrong with an interventionist approach, these do include the use of heavy machinery, herbicides and pesticides, fertilisers and practices that do not protect the natural health and balance in soil. One recent trend, however, has been for larger scale vineyards to begin to incorporate some of the organic ideas as it has been proven that there are many benefits and cost savings, over the long term, to be made. One example producer at this level is Wither Hills.

[ wine feature ] Organic vs Biodynamic An understanding of what ‘organic’ means for viticulture and wine and any differences with ‘Biodynamism’ will help your customers better understand these farming philosophies. Any notion that feral hippies are the only people to make organic wines have been well and truly dissolved by the enormous success of the producers that have embraced organics. Organics are a philosophy, a way of thinking translated into a usable system that sustains the health of soil, the ecosystems that are part of a vineyard – below and above ground - and the people that maintain the land. Organic viticulture also relies on ecological processes, biodiversity and cycles adapted to local conditions, rather than the use of inputs with adverse effects. The Maori term ‘Toitu’ sits well alongside the philosophy of organic – its meaning suggests land should be eternally sustainable. The goals of organics include healthy vines, healthy grapes and potentially great wine. To demonstrate how this works a very common practice is the use of compost, laid below each vine and on top of this a layer of straw. This simple application means a moist and protected environment exists below the straw - promoting good bacteria and microbial life, lots of worms and with the added benefit of not having to weed. Any need for weed control using manmade substances or machinery can have a significant impact on the soil and vine, such as compacting the soil, the release of exhaust fumes into the atmosphere and repeat weeding tasks. Organics also makes use of cover crops between the vines such as peas to build soil life. Buckwheat is also commonly planted to attract insects that eat pests. Bio-Dynamics takes the ideas of organics one step further with a deeper focus on understanding and managing the vineyard as a holistic organism. Biodynamic methods include the use of special plant, animal and mineral preparations which are used for various reasons from preventing disease to adding nourishment to the soil. Many of these applications coincide with the cycle of the moon and seasons while others do not. One such preparation is called [Preparation] 500. This is made by filling a cow’s horn with cow dung, and burying it in the ground for several months. After this time underground, the manure turns into a dark sweet-smelling humus. The manure is then combined with water and sometimes other ingredients to make Preparation 500, which

Felton Road winemakers stirring Prep 500

ORGANICS ARE A PHILOSOPHY, A WAY OF THINKING TRANSLATED INTO A USABLE SYSTEM THAT SUSTAINS THE HEALTH OF SOIL, THE ECOSYSTEMS THAT ARE PART OF A VINEYARD – BELOW AND ABOVE GROUND - AND THE PEOPLE THAT MAINTAIN THE LAND.” is sprayed throughout a vineyard typically at the descending phase of the moon. This elixir assists in the activation of the soil and encourages its life force to ignite.

The end result… The majority of wine made using organically grown grapes undertake a ‘natural’ or ‘wild’ ferment stage. Put simply this means that only the yeast cells stuck to the grape skins at harvest time begin and complete the primary alcohol fermentation. While there is some risk in this approach, it is always more successful than not. Recent research into indigenous yeasts throughout New Zealand suggests a very strong population and a

wide range of types plus a high degree of successful natural ferments. This is of course winemaker controlled. The resultant wine can and often smell and taste different and better. Herein lies one of the many positive outcomes for organically managed vineyards. The aroma of a naturally-fermented wine from these grapes is immediately more complex, subtle and engaging. For white wines there can be scents of wild flowers, delicate Manuka honey and heirloom versions of the fruits suggested. This is in addition to the attractive scents associated with each variety. For red wine, the same applies, though a little harder to detect when significant skin contact or oak is used. Red wine does, however, benefit with more texture and finesse. Red wine can often have less new oak used as well - a result of the more subtle and beguiling scents that can arise though a natural ferment based on organic material. This would be a producer and style decision however. Acidity too can be different in these wines, brighter, more focused and riper driving the finish and intensity for a much longer aftertaste. The decision as to whether a wine is better or even better for you because it is made from fruit farmed in a natural way will ultimately be decided by the drinker – your customer. A wine must always smell, taste and feel attractive touching as many senses as possible leaving a lasting impression. My personal experience of wines managed using organics is always more exciting, textural and leaves a lasting positive impression. FMCG BUSINESS - JUNE 2017

[ tasting notes ]

Expressions of

Riesling

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

FMCG BUSINESS - JUNE 2017

Riesling is a well-liked variety, with many winemakers and Sommeliers beginning their evenings after work with a glass or two before dinner – it is a great aperitif in a dry style. Riesling can however be vinified through the spectrum of bone dry to extremely sweet. The majority of wine produced from the variety is dry to off-dry, and this is where it excels. With an increase in production throughout New Zealand and current availability, it would be wise for all staff to know what key expressions of Riesling there are. Many of our customers still believe Riesling is a sweet wine only, so it becomes very important your staff are able to guide your customers into the right wine for their palates. It can be made into fabulous Late Harvest and Botrytised wines of course, and in some cases is used as a sparkling wine component. Fortunately, many producers have used some of their back-label space to apply a ‘sweetness through dryness’ scale. Though designed for the wine buyer, staff and customers can choose a wine based on how sweet they would like the wine to be (they can also refer to the alcohol level as a guide – higher is usually dryer). This scale, useful at a simple level, does not reveal a wines texture, floral attributes, degree of acidity and elegance. Welltrained, knowledgeable staff have an important role

to play and are critical to Riesling’s continued growth and successes in sales. Another great discovery for New Zealand Riesling is the use of screw top technology which holds the wines freshness and style for significantly longer so cellar ageing for longer periods is now possible as well. The best Rieslings I encountered in this month’s line up were just-dry to off-dry styles. Just-dry Rieslings have a tiny amount of residual sweetness, hardly detectable, that show off as much of the pure fruit expression as possible, while grabbing hold of any textures and acidity to create a seamless and silky palate. Examples with flavours of hot lemon juice and white peach with apple against a background of ripe acidity and fine texture make excellent drinking. The off-dry wines do have enough residual sweetness to notice, showing off the aromas and flavours of mandarin and green tea with apple blossom and lime flower. These wines also have searing acidity which again displays some very fine textures and finish. Riesling can be a great aperitif wine, and discovering which the best are is part of the job you have in this wine business – not a bad job to be in is it?

[ tasting notes ]

GIESEN ESTATE RIESLING 2015 Enticing aromas of citrus and tree fruits, sweet flowers, honeysuckle and mandarin. On the palate - off dry style with light sweetness; flavours of Meyer lemon, mandarin, a touch of lime and apple; fresh and vibrant acidity, lovely balance and length. Enjoy now and through 2024. Points: 94 RRP: $16.00 Distributor: Giesen Wines Phone: (03) 344 6270 www.giesenwines.co.nz

PEGASUS BAY BEL CANTO RIESLING 2015 Very enticing bouquet with aromas of ripe citrus especially, lemon and lemon peel; crushed red and green apple, yellow/ white flowers and stony mineral layers. On the palate - firm youthful texture, plenty of acidity, crisp and tense, a core of citrus flavours then notes of Manuka honey; wild flowers and minerality, a lovely wine with a long finish including a hint of spice. Drink now and through 2028. Points 94 RRP: $35.00 Distributor: Eurovintage Phone: (03) 314 6869 www.pegasusbay.com

TUPARI AWATERE VALLEY RIESLING 2016 Fresh, distinctive bouquet of Riesling with aromas of green apple and lemon, a soft stiny almost silty mineral and hay layer, some floral moments. On the palate â&#x20AC;&#x201C; off-dry with some sweetness then contrasted well by crisp textures of acidity, lemon and apple flavours, some minerality and a lengthy finish. Nicely poised for further ageing. Drink now and through 2025. Points: 92 RRP: $29.00 Distributor: Hancocks Phone: (021) 235 3026 www.tupari.co.nz

Wines are scored out of 100 points and are listed in no particular order. Numbers are not indicative of a ranking.

FMCG BUSINESS - JUNE 2017

[ people ]

MEET THE LIQUOR INDUSTRY Danny Halligan

Fiona Stackpole

Group Manager, Henry’s Beer, Wine & Spirits I was appointed to the role of Henry’s Group Manger in June 2009. Prior to this I worked with PAK’nSAVE, New World and Four Square in various promotional roles - in total I have been with Foodstuffs for 23 years. My role is to ensure that the Henry’s group continues to grow sales and market share at a sustainable rate. We are firmly committed to raising the level of retail standards in Traditional Liquor and ensuring that customers have an enjoyable shopping experience in our stores. I am always actively looking for opportunities to increase the number of stores in the group while at the same time ensuring that our existing stores are maintaining good standards and trading profitably. A key part of my role is working closely with owners and suppliers to build strong business relationships. As a group we are totally focused on ensuring that we are always bringing our customers a broad range and great value.

Trade Marketing Manager, Quench Collective Seeking additional brand partners has been a key focus in the past 12 months. I play a pivotal role introducing exciting brands into our portfolio. Strategically, I’m involved in setting Quench’s long-term vision, company goals and annual budget. We’re fairly nimble operators and the goal posts are constantly moving. On a tactical level, I oversee the stock management of over a hundred products. Working with brewers on forecasts is relatively simple - they can generally turn around a new batch of beer in a couple of weeks to meet demand. On the wine side of our business longer term demand planning is required, taking into account our grape yield. Rebranding Sacred Hill Wine Company to Quench Collective has definitely been an enormous highlight of my career. I’m excited contemplating the transformation Quench will go through in the next five years and beyond.

Carrie Bennett

Fabienne Itie

Franchise Manager, Super Liquor, Auckland/Northland I joined Super Liquor in November 2015 after spending the good part of a decade with Beam Suntory as a Key Account Manager. When the opportunity arose to join the team at Super Liquor as a Franchise Manager, it seemed like a good fit and an exciting new challenge. Over the last year my priorities have been rebranding most of the North Island Super Liquor stores, compliance, network growth and building relationships with store owners and managers. My focus over the next 12 months will be category management and growing the Auckland/Northland regions. I love that I don’t have a desk job – my time is spent out in the trade, using my experience to maximise opportunities for our franchisees. We have an amazing culture within the Support Office – which is genuinely geared towards franchisee satisfaction. Adding value and making a difference to franchisee success is what gets me out of bed in the morning!

Liquor Specialist, Countdown Mt Eden I work at Countdown Mt Eden as a Liquor Specialist. Anton Fedorchenko (Liquor Specialist, Countdown Ponsonby) encouraged me to apply for the position as he believed I would be perfect for the role. After working through the formalities I commenced work in late November. My role entails assisting, educating and advising our customers with their wine and beer choices. We also like to offer advice on wine and food matches. As well as being on hand to help our customers, I also organise wine tastings and promotional planning, as well as coordinating events and launches. I am passionate about wine and people, therefore I thrive on the relationships I create with our regular customers. I also like to pass on my knowledge to our other team members.

FMCG BUSINESS - JUNE 2017

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