FMCG MAY 2019 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

May 2019 – Volume 6 – No 4

FIRST

natural

ANTI-AGEING

SKINCARE

IN SUPERMARKETS

PLUS! WELLNESS WISDOM n NEW EVENTS n EASY MEALS n AWARD-WINNERS NEW ZEALAND’S LARGEST FMCG AUDIENCE

Blackmoresnz.co.nz

INNOVATION FROM THE

FASTEST GROWING SUPPLEMENT BRAND *

Call your Customer Representative on

0508 377 773

Always read the label. Follow the directions for use. Vitamins and minerals are supplementary to and not a replacement for a balanced diet. Blackmores, New Zealand. TAPSPP3935 * IRI MarketEdge Top 5 Dietary Supplement brands in National Grocery, Dollars Growth % vs. YA MAT 31/03/19.

contents May 2019

UP FRONT

EVENTS

Editor’s note

Industry news

30 Celebrating Outstanding NZ Food Producers Highlights from the Awards party

8 Entries open for NZ Food Awards

CATEGORY INSIGHTS 18 SPREADS 20 CONVENIENCE MEALS

REGULARS 10 GEAR New tech for work, rest and play 12 Best in season Fresh produce update 13 FGC Craving change 14 Feature Wellness Wisdom – insights from the IRI

16 Health & Wellness 17 Cover Story First natural anti-aging skincare in supermarkets 23 Profile PAVÉ readies for FMCG market disruption

GOOD BUSINESS

32 FMCG Business Marketing Summit Join us and meet inspirational speakers! 35 Out & About Our people - spotted at events in NZ and around the world

THE SHOUT 3

Editor’s note

Industry news and insights

7 The butcher and brewer Behemoth Brewing to crowdfund their new brewpub and announces move to cans 8 Getting into the spirit of things Results from the 2019 New Zealand Spirits Awards 9 Baa, baa, gin sheep Q&A with The White Sheep Co.’s Sam Brown 10 An organic outlook

24 Industry news 26 10 Steps in successful recruitment 27 Legal Advice 28 Profile Top accolade for Harraways

32 What’s On Events for your diary

12 Discovering fine wine Tasting notes from Cameron Douglas MS 16 Honey, I’m home Beer writer John Oszajca gives us the lowdown on mead

FMCG BUSINESS - MAY 2019

[ editorial ]

ROCKSTARS & AWARD-WINNERS A ccording to Sir Richard Branson, a company’s workforce is its most important stakeholder - and it seems the English billionaire, business magnate, author and philanthropist has done remarkably well with his theory. Having a team of ‘rockstars’ is the most profitable investment you will ever make, agrees Kara Atkinson, a recruitment expert with over 18 years’ experience in the industry. But how do you take the coin-flip out of the hiring process? Atkinson explains it all on pg 26. She is our new guestwriter this month, joining our columnists from the FGC, IRI, United Fresh and Steindle Williams Legal, to bring you valuable expert advice and industry insights. Our team is constantly looking at ways we can do better, so our print magazines are now wrapped in EcoPure biodegradable plastic bags for dispatch. You can also read FMCG Business monthly in digital format, if you prefer. Subscribe over on www.fmcgbusiness.co.nz, sign up for our weekly edm, and join our conversations on Facebook, Instagram or Twitter (we now have about 12,000 followers on social media). We’d love to hear from you. And if you share your favourite snaps, you could win one of our monthly prizes. Turn to pg 35 to find out more. See the highlights of the Outstanding NZ Food Producer Awards party, discover what’s trending in natural health and beauty products right now and check out what’s new in Convenience Meals. If you have a rockstar food or beverage product in your stable, then please consider entering it for the NZ Food Awards – powered by Massey University. Entries close 31 May and Finalists will be announced on 21 August. You will find more information on this and other unmissable events - in this issue. We hope to catch up with you and your team soon – it would be great to see you at the FMCG Business Marketing Summit, the Chocolate & Coffee Show, or the NZ Food Awards! 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 DIRECTOR Jacqueline Freeman jfreeman@intermedianz.co.nz ART DIRECTOR Ryan Vizcarra ryanv@intermedia.com.au HEAD OF CIRCULATION Chris Blacklock cblacklock@intermedia.com.au PRODUCTION MANAGER Jacqui Cooper jacqui@intermedia.com.au PUBLISHING ASSISTANT Eclypse Lee elee@intermedianz.co.nz SUBSCRIPTION ENQUIRIES Eclypse Lee elee@intermedianz.co.nz

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

fmcgbusiness.co.nz

L E A D I N G

I N D U S T R Y

May l 2019 – Volume 6 – No 4

FIRST

natural

ANTI-AGEING

SKINCARE

IN SUPERMARKETS

N E W S

ON THE COVER The Glow Lab Age Renew® product range is launching in supermarkets nationwide - read the full story on pg 17.

PLUS! WELLNESS WISDOM n NEW EVENTS n EASY MEALS NEW ZEALAND’S LARGEST FMCG AUDIENCE

FMCG BUSINESS IS PROUDLY ASSOCIATED WITH

FMCG BUSINESS - MAY 2019

FMCG Business is audited and verified by ABC.

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 © 2019 - The Intermedia Group Ltd

TIC TAC® Gum is the #2 Player in the Australian Grocery + Convenience Gums category since launch.1 Driving 8.5% growth in the Gums Grocery & Convenience category.2 86% of consumers who tried TIC TAC GUM liked the taste & flavour3 ®

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[ news ]

Foodstuffs stores among most reputable brands

Home-grown New Zealand brands hold nine of the top 10 places in the Colmar Brunton Corporate Reputation Index 2019, with Air NZ right at the top. The Corporate Reputation Index measures four pillars of reputation – responsibility, fairness, success / leadership, and trust. “The fact New Zealanders have nominated PAK’nSAVE as the second most reputable brand in New Zealand in the Colmar Brunton Corporate Reputation Index, means we’re honouring our commitment to them and they’re rewarding us with their custom. We’re humbled,” says Dominic Quin, GM Marketing and Customer Experience, Foodstuffs NZ. “Every day we set out to deliver New Zealand’s lowest prices for our PAK’nSAVE customers, and that clearly means a lot.”

New World is also in the top ten; in ninth place for the second year in a row – consistently polling as a leading brand with trusted service and a visible pledge to make the world a better place. “Whether reducing plastic, helping New Zealand producers get a foot in the door, or supporting local foodbanks to the tune of 5.6 million meals a year, New World along with PAK’nSAVE is 100% committed to supporting our communities. “We’re 100% New Zealand owned and operated, and with our sister brands employ more than 30,000 team members and serve millions of customers each month,” says Quin. He adds: “Good food is not a privilege in our books. PAK’nSAVE has been making groceries super affordable since the 80’s. We work closely with local and global suppliers to provide a fantastic range for every household – we make no excuses for driving a hard bargain to make sure New Zealanders can live better for less. But there’s also room for a little love on grocery and that’s where New World comes in.” New World launched ‘Enjoy Better’ in 2018, rolling out the best butchery and bakery goods handmade instore by experienced and apprentice team members. In fact, between them, New World and PAK’nSAVE have launched the careers of more than 800 butchers and 700 bakers over the last 10 years. Quin says, “Whether being first to embrace 100% recyclable meat trays and our world-famous Food in the Nude produce sections, or giving away millions of reusable bags, installing Electric Vehicle Chargers or simply donating half time oranges to rugby and netball teams around New Zealand, we’re there. We care.”

Clearance for GSK to acquire Pfizer The Commerce Commission has granted clearance for GlaxoSmithKline to acquire the consumer healthcare business of Pfizer Inc. In considering GSK’s application, the Commission’s main focus was whether GSK and Pfizer are close competitors in New Zealand for consumer healthcare products which are medicines and treatments that can be purchased without a prescription. In particular, both GSK and Pfizer supply cold and flu treatments, and systemic pain relief treatments that can be purchased without a prescription in New Zealand. Chairman Dr Mark Berry said the Commission is satisfied that the acquisition is unlikely to substantially lessen competition in any New Zealand market. “We consider that GSK and Pfizer are not close competitors in the supply of cold and flu treatments, systemic pain relief treatments or any other consumer healthcare products, and that the presence of suppliers of competing products is likely to constrain the merged entity.”

GSK is a global pharmaceuticals company active in the research, development, manufacturing and supply of prescription pharmaceuticals, human vaccines, and consumer healthcare pharmaceuticals that are available without a prescription. Pfizer is also a global pharmaceuticals company involved in the research, development, manufacturing and supply of medicines. Pfizer’s consumer healthcare business develops, manufactures and supplies non-prescription medicines in the areas of pain management, gastrointestinal health, respiratory, dietary supplements and personal care products. Further information is available on https://comcom.govt.nz

FOR MORE INDUSTRY NEWS FOLLOW US ON

CHECK OUT WWW.FMCGBUSINESS.CO.NZ

FMCG BUSINESS - MAY 2019

BACK IN MARCH 1996 a new little company was started – Rothford International Ltd., with just one client, two guys and a long way to go. Over the years we grew, the name morphed into Rothfords and we became part of the national FMCG fabric, covering the country from Kaitaia to Invercargill. From attending the SIAL Trade Fair in Paris (winning the SIAL D’Or for Best New Product in New Zealand and Best Meat Product in the world with our one and only client back in 1998) to being voted Best Fine Food Brokerage in the 2017 NZ Business Awards, Rothfords has a proud track record. Rothfords has always focussed on being the best – not the biggest, just the best – with excellence our primary goal and always trying to go the extra mile for our clients. Anyway, enough of all the normal agency rhetoric – you can easily find that stuff when you read adverts from other SMA brokerages. It’s time to be real, so we are changing the name of Rothfords to reflect what we are really all about.

No crap, no excuses and people who give it their absolute all for our chosen partners, 100% in, no excuses! From April we will become SURGE SMC – Rothford Sales & Marketing Crew. Our focus will remain on excellence and sales momentum – the Surge. Surge SMC is about honest people, honest hard work and no excuses – 100% in. Surge SMC starts with excellence in bespoke systems and operations, excellence in experience, culture and skilled staff. These things are the wind in our sails, and we pride ourselves in being the Surge behind our clients’ brands, helping breathe life into their growth. What does SMC mean? – nothing and everything: Surge SMC – sales & marketing crew Surge SMC – shelf management crew Surge SMC – social media crew Surge SMC – solutions making crew Surge SMC – so many cool people in the crew

Which do you need and which are you not getting at present?

We don’t pretend to be the right company for everyone and not all companies are the right ones for us – we have a strength in short shelf life, chilled, frozen and on-trend health and wellbeing foods. While others clam to know these areas well . . . who knows – maybe, but perhaps not. If you are sick of poor results and lame excuses, perhaps you should have a chat and together we might be the right fit going forward. If you want us on your boat as a reliable, trusted and experienced crew – give us a call and let’s talk.

SURGE SMC – Rothford Sales & Marketing Crew

Call Tony Trilford 0800 949 333 or visit our website www.foodbrokers.co.nz

[ events ]

ENTRIES OPEN FOR NZ FOOD AWARDS!

ntries for the 2019 New Zealand Food Awards are now officially open, until May 31. Sponsored by Massey University, the awards celebrate locally-made products, focusing on innovation and excellence. The awards, held annually since 1987, are aimed at small and large food and beverage manufacturers, primary food producers, food service providers and ingredient supply companies. Last year’s winner of the New Zealand Food Awards Massey University Supreme Award was The Whole Mix Co. Limited, for the company’s vegetable noodle range. The company, owned by Marton-based Spiers Foods, also won the Massey University Health and Wellbeing Award, and the James & Wells Business Innovation Award. Finalists included Pãmu deer milk powder, Õra King TYEE salmon and cultured vegan butter from Savour Ltd. Winning products will earn the right to use the New Zealand Food Awards Quality Mark to highlight the superiority of their products to both shoppers and the industry as well as helping to boost sales and distribution domestically and internationally. Massey University Vice-Chancellor Professor Jan Thomas says the New Zealand Food Awards are committed to encouraging local food producers to continue to grow, experiment and create fantastic products. “Massey is extremely proud of the role the awards have had in showcasing excellence and innovation in food and beverage production for the past three decades,” Professor Thomas says. “The awards are recognition of the great work being done every day in the food and beverage industry, particularly the cutting-edge innovation behind some great Kiwi products. They provide local producers with the opportunity to elevate their business on a global scale. “We know New Zealanders are regarded as world leaders in this sphere and it is right that we remind ourselves each year just how extraordinarily talented and creative the people in our food sector are by celebrating their achievements. “In the past year, Massey has committed to building a state-of-theart consumer and sensory science facility at our Manawatu campus to help determine what drives people in their food choice behaviour. The University also developed a unique technology to address iron deficiency without adversely affecting the taste of food and beverage – new technology which has since been acquired by Nestlé. These are important steps in the food and beverage industry in New Zealand and around the world, and highlight Massey’s commitment to the sector.” 8

FMCG BUSINESS - MAY 2019

THE QUALITY MARK IS A BADGE OF HONOUR WORN BY ONLY A SELECT FEW PRODUCTS AT THE VERY TOP OF THE INDUSTRY.” Entries for the competition close on Friday May 31. The online entry process has been streamlined this year, making it easier for entrants to submit their products, via a new purpose-built online portal. The benefits of entering the awards are not only for the big winners. Working through the entry process will give companies a great overview of their product and business, which can be further enhanced by feedback from the awards’ expert industry and technical judges. Hard work and ambition deserves recognition in the market place and entering the New Zealand Food Awards can help your product achieve break through. And of course the Quality Mark is a badge of honour worn by only a select few products at the very top of the industry. So why not give it a go? The New Zealand Food Awards are made possible thanks to principal sponsor and event organiser Massey University, and with the support of New Zealand Food Safety, Countdown, Cuisine Magazine, James & Wells, The Intermedia Group New Zealand, Eagle Protect, FoodHQ, New Zealand Trade and Enterprise and The FoodBowl. Winners will be announced at a Gala Dinner at Auckland’s SkyCity Convention Centre on October 23.

[ news ]

New MD for IRI Asia Pacific IRI, the big data and technology expert for consumer industries, has announced the appointment of Paul Hinds to the role of Managing Director for the Asia Pacific region, commencing on 6th May. Hinds is a highly experienced and accomplished global IRI executive and will be based out of IRI’s Sydney, Australia operations. He moves into the new role after an extremely successful period as Senior Vice President of IRI’s UK Retail Solutions business. In his UK role, he led the transformation of IRI’s Retail business, introducing many new initiatives, including the rollout of the industry-leading IRI Liquid Data® technology platform to empower retail and manufacturer clients across their customer and commercial strategies. During this time, he grew and transformed IRI’s engagement with retailers, establishing new partnerships with Tesco, M&S, Boots, Waitrose, Costco, Lloyds and One Stop. He also led the development of IRI’s largest data and insight collaboration function outside of the United States and established the business as an industry-recognized leader in the UK customer loyalty space. Hinds possesses a proven track record of developing highly successful strategic relationships that combine a wide range of data assets and prescriptive strategic analytics with IRI’s technology platform to help retailers and suppliers make better and faster

business decisions that drive maximum value for consumers. Prior to joining IRI, Paul held leadership roles within commercial, consultancy and delivery functions, where he consistently contributed to the success of his clients. He spent several years at insight consultancy, Beyond Analysis, where he led a number of client engagements, including, Visa Europe, Kingfisher Group, Waitrose, Penguin Books Paul Hinds, IRI Managing Director for the Asia Pacific region and JustGiving. He also spent seven years at dunnhumby, where he was responsible for insight and loyalty engagements for multiple clients, including Tesco, Shell, British Airways, Deutsche Telecom, Vodafone, Barclays Bank and BSkyB.

Leaders. Innovators. Disruptors. Movers. Shakers.

We put the spotlight on sought after FMCG talent.

Lara Devereux Sales & Marketing 09 300 6877

Erin Kirk Sales & Marketing 09 300 6791

Bobbi Ryan Supply Chain & Operations 09 300 6874

Claire Ellis Finance & Accounting 09 300 6792

Chris Palmer Interim Talent 09 300 6872

Alistair Comyn IT & Projects 09 300 6793

Let us connect your business to the exceptional game changing talent transforming the FMCG world. Talk to our FMCG recruitment specialists. www.convergencepartners.co.nz FMCG BUSINESS - MAY 2019

[ gear ]

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

Seagate Fast SSD portable storage Mechanical external USB hard drives might be handy, but they’re slow and fragile - bump a mechanical drive when it is spinning, and the odds are good that it’ll break. Seagate’s FAST SSD drives are about the size of a pack of cards and use solid-state storage which means there are no moving parts, so they’re durable. They’re so much faster than old school mechanical USB hard drives. Seagate’s Fast SSDs are available in capacities ranging from 250GB to 2TB. https://www.seagate.com/au/en/consumer/backup/fast-ssd/ $348 (1TB)

2Degrees Amazon Prime Video As competition heats up in the fibre broadband market, 2Degrees have fired off a competitive salvo by bundling Amazon Prime Video along with their unlimited broadband plans. Amazon Prime Video is a Netflix like service that includes shows such as Jeremy Clarkson’s Grand Tour. Prices start at $75. https://www.2degreesmobile.co.nz/broadband/ $75-$100 per month

Harman Kardon Allure Portable Smart Speaker Bluetooth speakers are great for sharing the tunes stored on your phone, but Harman Kardon have taken this to the next level by adding in Alexa, Amazon’s smart AI assistant. Alexa can set alarms, reminders, tell bad dad jokes and also drive smart home widgets such as smart lightbulbs, thermostats or security cameras. Most important of all, the Allure Portable sounds excellent. https://www.harmankardon.co.nz/ALLURE+PORTABLE. html?dwvar_ALLURE%20PORTABLE_color=Black-USACurrent $329

FMCG BUSINESS - MAY 2019

[ gear ]

Jaybird X4 headphones Wired headphones and gym workouts are never a good mix, which is why Jaybird’s Bluetooth X4 headphones make such good workout buddies. Sweat and water resistance combines with in-ear comfort and decent audio, which makes the ultradurable X4 headphones ideal for sports Billies or Whilliemanas. https://witchdoctor.co.nz/index. php/2019/04/jaybird-x4-wirelessearphones-review/ $228

Huawei GT Watch Smartwatches may be incredibly handy, but most need quality time with a charger after only a day’s use (looking at you Android Wear and Apple Watch). Huawei’s latest effort, the GT Watch can squeeze an incredible 2 weeks out of a single charge and is water resistant to boot! https://consumer.huawei.com/nz/wearables/watch-gt/ $348

Huawei P30 Pro Huawei’s latest phone does the impossible and manages to cram a 10x optical zoom into an ultra-slim phone body. If that wasn’t impressive enough, it features a night shooting mode which makes taking decent no flash night photos possible. Add in a generous 256GB of storage, IP68 water resistance, fast charging and wireless charging, and there is a lot to like. https://consumer.huawei.com/nz/phones/p30-pro/ $1,498

FMCG BUSINESS - MAY 2019

[ fresh produce ]

BEST IN SEASON

he May Ohakune crop is in peak production with vegetables such as parsnips, swedes, potatoes, brussels sprouts and carrots, all readily available. The leafy green Autumn crop of broccoli, celery, leeks, silverbeet and cauliflower is in full swing too, and these vegetables should be displayed prominently. With consumer’s eating habits changing in May due to cooler weather, they will become more sought after. This Autumn crop will also experience mixed flushes over the coming weeks and this is a flow on effect of the difficult planting conditions growers faced over summer due to lack of rain. Prices will fluctuate, but it is important to be agile and move with the flushes from a display perspective.

Kiwifruit

PERSIMMONS PROVIDE A GOOD SOURCE OF VITAMINS A AND C.” 12

FMCG BUSINESS - MAY 2019

Our world-famous fruit is in peak season and should be featured every which way you can. The four main varieties available are Green, Organic Green, Gold and Sweet Green. To encourage people to eat them fast, space needs to be devoted to them, including bulked up displays. Kiwifruit are a good source of vitamin C, and this is a good point to get across to consumers so they become aware of their nutritional value. What to look for: Choose plump, fragrant fruit that yields to gentle pressure. If the kiwifruit gives too much when pressure is applied, it will most likely be mushy and overripe. Storage/handling: Ripe kiwifruit can be stored at room temperature for a few days, after that they should be refrigerated to prevent becoming overripe. Ensure stock is rotated well. Nutrition: Kiwifruit are a good source of vitamin C which helps protect cells against free radical damage. They are also a good source of folate and dietary fibre, a source of niacin, vitamins E and K and contain potassium.

Mandarins The New Zealand citrus season is now underway and May is the month for easy-peel Satsuma mandarins. Reputable growers measure the Brix value in their fruit, which determines the sugar/ acid ratio and ensures that fruit is picked at the optimum time to ensure it is sweet and perfect for eating straight away. What to look for: Skin should feel slightly loose and a juicy mandarin will feel heavy for its size. Avoid bruised or blemished mandarins. Storage/handling: Satsuma mandarins can be stored at room temperature for a few days but should be refrigerated after that to extend shelf life of up to two weeks. Nutrition: Satsuma mandarins are a good source of vitamin C and folate, a source of dietary fibre, thiamin and also contain potassium which is essential for healthy fluid and mineral balance.

Persimmons In New Zealand, the main persimmon variety is the Fuyu and they have a short availability window of May to July. As they become available at the start of winter, there isn’t a lot of other fruit around, so it is a good idea to display prominently. What to look for: Choose persimmons that are firm to touch as they will continue to ripen on the shelf. A ripe Fuyu persimmon will be a deep orange colour. Less ripe persimmons will be a lighter orange but a lot of people like them this way as the flesh is crisp. Storage/handling: Persimmons are unlike a lot of other fruit in that they keep longer if stored at room temperature – between 15-25 C. Persimmons kept refrigerated will go soft more quickly than if they are left at room temperature. Nutrition: Persimmons provide a good source of vitamins A and C and are a source of dietary fibre, which supports digestive health. They also contain potassium and are a source of manganese.

Join us on

www.unitedfresh.co.nz

[ FGC ]

CRAVING CHANGE

hen I know so much is being done by the dairy industry to be good stewards of the land and to produce highquality nutritious foods, I get disappointed to read such negativity about our ‘Number 1’ industry. The idea that dairy farmers are happily collecting their big milkfat cheques while caring little for the pollution their herds pour into our once-pristine rivers and streams is both unfair and not the reality about the hard work our dairy companies and families are doing every day. The facts, of course, bear out a different scenario and a lot of work. By 2017 some 99.7% of waterways more than a metre wide had fenced out stock, while many thousands of farmers have planted banks covering many thousands of kilometres, and built secure effluent ponds. And the work goes on. FMCG sector companies can relate to this. If you believe the attacks by health activists, the last thing companies care about is the health of their consumers, happy to continue to peddle all manner of unhealthy food while pocketing obscene profits and being blind to the need to change. Anyone with genuine experience of the people in our industry knows that’s all far from the truth. I’ve written and spoken many times about the work our food companies are doing on reformulating and developing products with less sugar, salt and fat, developing and supporting education programmes in communities and schools to both feed people and help them make healthy choices, and introducing initiatives to reduce their footprints on the environment. This work is not confined to New Zealand companies, as is highlighted by a global survey by the Consumer Goods Forum (CGF), an organisation that helps retailers and manufacturers secure customer trust and drive positive change, including greater efficiency. Its members employ nearly 10 million people, with a further 90 million related jobs estimated along the value chain. The NZ Food & Grocery Council is a member. Their recent survey looked at how retailers and manufacturers are helping consumers lead healthier lives, and the data shows impressive improvement in all of the CGF’s health and wellness commitments. Here are some of the findings: • 98% of companies reported reformulating at least some part of their product portfolio to align with health and wellness policies. More than 70% of companies reported reformulating salt and sugar in their products.

• Since 2015, more than 320,000 products have been reformulated worldwide. • Some 61% participated in food bank programmes, donating nearly 93,000 tonnes of food. • Partnerships with education authorities on health and wellness initiatives involved more than 550,000 schools. • Almost 2 million employees participated in health and wellness initiatives last year, versus 1.6 million in 2017 and 1.3 million in 2016. Surely even the most sceptical would have to admit that’s not bad going for a sector that apparently isn’t listening and doesn’t care. The CGF Director of Health & Wellness summed it up perfectly when she said the sector has come a long way in the five years of the survey, but that there is still much to do: “Consumers and our employees want to be empowered to make changes to their health and wellbeing, so they can live healthy and more active lifestyles for longer. People are craving change, and we recognise our industry’s role in both preventing illness and in empowering people to live healthier lives”. Hear, hear to that. But no one’s stopping there. In its next five-year plan, the CGF will focus on an initiative entitled ‘Collaboration for Healthier Lives’. In it, members will test new approaches and share best practices in nudging people’s behaviour to healthier practices. It should be obvious from this that FMCG companies the world over are fully aware of the immense potential of community-based initiatives and that they will continue to play a huge part in them.

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

SINCE 2015, MORE THAN 320,000 PRODUCTS HAVE BEEN REFORMULATED WORLDWIDE.”

FMCG BUSINESS - MAY 2019

WELLNESS WISDOM Paradigm shift in health management

ealth and wellness has changed over the years into a more holistic approach that encompasses one’s mind, body and emotion. We are adopting a comprehensive 360o self-care approach that goes beyond simply treating illness and disease. We engage in much more proactive management and active control of our overall wellness as well as monitoring it closely through apps and wearable technology. ‘Knowledge is Power’ and like never before we are investigating symptoms online and attending health seminars by experts such as Dr Libby. This desire to promote overall wellbeing is influencing consumers’ purchasing behaviours when it comes to brands, products and experiences. As we strive for the best health outcomes possible through how much we exercise, sleep and what we eat, we also supplement our nutrition with natural medicines. As a first line of defence, approximately 32% of us are taking Over-the-counter (OTC) medicine when we initially feel unwell. However, we are now starting to see that just as many of us start eating more healthy food (31%) or take Natural Health supplements (30%). This approach is notably more popular amongst the younger generations (18-34 year olds) with 50% engaging in one of these activities compared with only 35% of over 55 year olds1. 14

FMCG BUSINESS - MAY 2019

Natural Health supporting wellness Natural Health Medicines are one of the founding tenets of the Health and Wellness market. Natural Health is the largest category within the Patent Medicine department in Grocery with $85 million in sales (MAT to 03/03/19). The category is the largest contributor to overall department actual value growth (responsible for over 61% of growth), increasing +1.6% compared with the previous year. Across the top 10 Natural Health segments in Grocery, seven are in growth2.

Top Natural Health supplement trends for 2019-2020 Key local trends match what we are seeing globally in the wellness space.

• The Mind Supporting the mind as much as the body continues to be a strong trend as it is seen as critical for overall wellness - whether it is supporting sleep, stress and anxiety, or optimising brain performance. Sleep is the fastest actual value growth segment in Grocery Natural Health (+40.1%)2, while in the USA, Sleep & Mood is the fastest actual value growth segment at +17.0% (adding an additional US$70 million)1.

[ feature ] Sleep is a hot topic globally as we increasingly understand its broader benefits for brain function, emotional wellbeing, physical health, performance and safety. It is therefore no surprise Magnesium is the second fastest actual value growth ingredient (+9.9%)2. Products that address issues such as brain fog, poor memory, anxiety, cognitive function, and lack of focus are also predicted to see growth. The Brain segment is the second fastest actual value growth segment in the USA at +33.1% (adding an additional US$31 million) and is emerging in New Zealand Pharmacy1 whilst marginally down in Grocery (-0.7%)2.

• Ancient holistic health

• Beauty-from-within

Shoppers want to be in control of their wellness journey, encourage and embrace their curiosity. How can we engage, connect and support them? How do we think creatively about growth opportunities in other categories, as wellness broadens and categories blur - the competitive set evolves? Can we offer emerging shopper segments the right solutions by monitoring changing consumer beliefs, needs and values?

A strong and growing trend that is built on the idea that beauty is as much about what you consume as what you put on the surface. In New Zealand Skin, Hair, and Nails is the fourth fastest actual value growth segment (+20.9%)2, Beauty is the fourth growth segment in actual value in the USA (+14.3%)1. Inner beauty products, particularly including Collagen, are coming into the spotlight with value growth +68.8%2. We can expect to see further growth in this segment together with better-for-you, non-toxic beauty personal care products as part of the larger wellness movement.

• “All Disease Begins in the Gut” – Hippocrates Gut health is a prevalent and growing concern for New Zealanders. The Digestive Natural Health segment in Grocery is the sixth fastest actual value growth category in Grocery this year (+3.7%), on the back of an exceptional year last year (+21.5%). Probiotics is the fourth fastest actual value Natural Health growth ingredient which increased +12.2%. Probiotics and Apple Cider Vinegar that sit within the Natural Health Digestive segment contributed largely to value growth. Apple Cider Vinegar, however combined across both Shelf Stable Vinegar and Natural Health is down almost $100K.2 Wellness is broadening and categories are blurring as we are increasingly engaged with food and beverage led prevention and healing. The recent Auckland food festival Ferment! highlights the increased interest in fermented foods and this is translating into growth across a wide range of products including - Broth +134.6%, Sauerkraut +64.6%, Kimchi products +46.0%, Kefir products +35.7%, Ghee +27.5%, Gherkins +13.2%, Miso Soup +8.5% and Olives +3.7%. However, we can’t forget Kombucha up a staggering $13.5 million (+302.9%)! We are also seeing new developments in the Chilled Juice and Drinks space with Probiotic and Apple Cider Vinegar drink lines being introduced2.

The ancient holistic healing power of Ayurveda medicine continues its renaissance. Ayurveda’s blockbuster botanical Turmeric continues its growth trajectory into the mainstream delivering +183.3% which equates to +$1.2 million incremental dollars. We are also seeing a wave of adaptogenic ingredients such as Ashwangandha, Aloe Vera, Zizyphus, Ginseng, and Maca delivering growth in Pharmacy across New Zealand and Australia1. Globally we expect people will skip having superfoods and move straight to their active ingredient or mesonutrient to optimise our wellness. Fuelling this is the likely increased availability of new mesonutrients such as Bio-curcumin in Turmeric, Epigallocatechin gallate (ECGC) in Green Tea, Berberines in Golden Seal and Saffronal as the name suggest from the spice Saffron.

What are the key questions we should be considering?

About IRI IRI is a leading provider of big data, predictive analytics and forward-looking insights that help CPG companies, OTC health care organisations, retailers, financial services and media companies grow their businesses. With the largest repository of purchase, media, social, causal, and loyalty data, all integrated on an on-demand, cloudbased technology platform, IRI helps to guide its more than 5,000 clients around the world in their efforts to remain relentlessly relevant, capture market share, connect with consumers, and deliver marketleading growth. A confluence of major external events — a revolution in consumer buying, big data coming into its own, advanced analytics and automated consumer activation — is leading to a seismic shift in drivers of success in all industries. For more information on IRI, please visit www.iriworldwide.com. 1 IRI Natural Health Summit Report 2 IRI Market Edge (Grocery) New Zealand MAT Value MAT to 03/03/19.

Samantha Firsow Market Insights Consultant Solutions & Innovation at IRI

FMCG BUSINESS - MAY 2019

[ news ]

HEALTH & WELLNESS BLACKMORES PROBIOTICS+ RIGHT STRAIN, RIGHT DOSE Gut health is important for maintaining health and wellbeing. It is influenced by a number of factors such as the foods you eat, your lifestyle and the balance of good and bad bacteria in the gut. Probiotics, often referred to as ‘good bacteria’, are a beneficial influence on our digestive system and overall health and wellbeing. Blackmores offers a comprehensive range of probiotics based on scientific evidence, formulated with scientifically researched probiotic strains and supported with vitamins and prebiotics to complement the probiotics. There’s no need to refrigerate, a specialised formulation process and packaging technology helps prevent moisture from harming the good bacteria, helping keep them alive. This ensures the probiotics reach your digestive system where they work. Introducing the new Probiotics+ Daily Health 30s, a dual-action formula containing five scientifically studied probiotic strains providing 30 billion good bacteria, plus a prebiotic to help maintain digestive health and daily wellbeing.

CANCER SOCIETY APPOINTS PAVÉ TO REPRESENT SUNSCREENS PAVÉ Ltd has been appointed to represent The Cancer Society of New Zealand sunscreen products nationally, by its commercial arm Daffodil Enterprises Ltd. The Cancer Society is the #2 Brand in the Sunscreen category and has been delivering high quality products to protect New Zealanders since 1997. Fiona Mawley, General Manager of Daffodil Enterprises commented “We were impressed by the highly professional, collaborative approach PAVÉ offers, combined with refreshing transparency and rapid access to detailed information”. PAVÉ is proud to be entrusted with the care of an iconic brand that does so much to support kiwis battling cancer. Chris Wong, PAVÉ Managing Director stated that “On average well over a dollar for each unit sold goes to the Cancer Society to help people affected by cancer and to support cancer research. We’re thrilled to contribute to this effort”. The Cancer Society range can now be ordered from PAVÉ Ltd. For more information please call 09 903 0927 or visit www.pave.co.nz. 16

FMCG BUSINESS - MAY 2019

REVISED CODE FOR MARKETING INFANT FORMULA The Infant Nutrition Council’s revised Code of Practice for the Marketing of Infant Formula in New Zealand was launched at Parliament by Health Minister David Clark and Minister for Food Safety Damien O’Connor. The Code restricts the advertising and marketing of infant formula products for children up to 12 months of age. It was revised after the Infant Nutrition Council (INC) applied to the Commerce Commission to extend the restriction that applied to products for children up to 6 months old. Chief Executive of INC, Jan Carey, which represents most infant formula manufacturers, said they made the application because the improved health outcomes that would flow from it would outweigh the detriments arising from the lessening of competition between formula makers. “We recognised the importance of aligning the marketing practices of infant formula that is the sole source of nutrition for infants up to 6 months with breast milk substitutes for infants up to the age of 12 months. The Commission agreed, and their decision underlined exactly what the industry is trying to do – put the health of babies and mothers first. The industry has acted, in my view, with great responsibility and integrity by revising the Code. “Our stance is supported by many public health bodies. It aligns with recent guidance from the World Health Assembly and is consistent with the Ministry of Health’s nutrition guidelines for infants,” says Carey.

[ cover story ]

FIRST NATURAL ANTI-AGEING SKINCARE IN SUPERMARKETS G low Lab - a natural personal care brand launched only 18 months ago, has redefined the natural space in supermarkets and is on track to becoming the no.1 natural personal care brand in NZ Grocery, says Glow Lab Brand Manager Fenella Brown. “The brand is already delivering significant incremental growth to the skincare, haircare and personal wash categories. Glow Lab’s unique offer, blending nature with clinically proven naturally derived, active ingredients delivers the efficacy consumers demand; traditionally a key purchase barrier of natural products,” says Brown. Leveraging from this success, Glow Lab is launching the first natural anti-ageing skincare range into supermarkets; Glow Lab Age Renew®. True innovation set to capitalise on two key growth segments in skincare – natural and anti-ageing. After extensive consumer research with women 35+yrs, Glow Lab Age Renew® was developed, to

specifically meet the skincare needs of this target demographic. Research highlighted more consumers are moving to natural skincare, with efficacy even more important amongst consumers looking for an anti-ageing skincare brand. Brown

explains: “Glow Lab Age Renew® follows Glow Lab’s core philosophy “Nature + Science”, with natural formulations enhanced with clinically proven ingredients to deliver results. Examples include Lumicease™ found in Glow Lab Age Renew® Total Defence SPF15 Moisturiser, which protects and strengthens skin against light damage while Lanachyrs™ found in Glow Lab Age Renew® Firming Eye Serum may improve the appearance of under eye bags by up to 20 times. These trademarked, proven active ingredients deliver a natural skincare regime that’s beautiful to use and most importantly works. “Our Glow Lab Age Renew® skincare range will deliver incremental sales to skincare by trading up existing natural skincare buyers and bring new customers into supermarkets who are currently purchasing established natural anti-ageing brands in other channels,” says Brown. The range of eight Glow Lab Age Renew® products are already starting to appear in supermarkets nationwide. FMCG BUSINESS - MAY 2019

SPREAD THE LOVE

Love spreads? Here’s a quick snapshot of new and noteworthy products arriving in store.

hat could be more satisfying than fresh bread with good peanut butter, jam or honey? It’s such a quick and easy breakfast, lunchbox filler, or snack. We are lucky to live in a country that produces spectacular spreads - and some have even won significant awards. Nut Brothers’ ever growing range of natural nut butters have been stealing the limelight of late. The most recent accolade has seen them take out Gold for the Farro Fresh Outstanding NZ Earth Producer Award with their allnatural Super Crunch Peanut Butter. These guys are nuts about nuts, and even nuttier about great tasting, wholesome food. So when you combine the two, it is no surprise that they’ve turned everyone’s favourite toast topper into a fine art. Each sample sends taste-buds into overdrive and converts another peanut butter lover across to Nut Brothers. This, backed with a 5-star health rating is a no brainer for anyone passionate about health – mums, gym-buffs, wellness warriors, athletes, vegans... you name them, they love it! 18

FMCG BUSINESS - MAY 2019

Each jar is made using the best High Oleic Argentinean Peanuts or the finest Almonds they can source; fire roasted and milled in small batches the very same day, right here in New Zealand. Nut Brothers believe, just like coffee, you can really taste the difference in the freshness. That’s why they don’t use peanuts previously roasted overseas and manage each careful step of the nut-buttery process to craft a rich, fresh and flavourful nut butter every time. So, if you’re nuts about Nut Brothers’ [like we are], you’re going to be pretty excited to hear they have a new flavour hitting shelves in May; their five-star health rated Salted Caramel Peanut Butter. All the indulgence with zero guilt. Vegan friendly and gluten free, it is the ultimate all-star. Contact Jono at Nut Brothers for more information – email info@ nutbrothers.co.nz or call 022 072 3739.

[ category insights ]

Crafting delicious Nut Butters since ages ago

Nature’s Keepers In 1975 the Happy Valley Honey brand was founded to harness the power of nature - creating Honey and Bee products for family well-being and happiness. “Now 40 years later, we are on the shelves around the world and proudly now available in leading New Zealand grocery chains,” says Narissa Taylor, General Manager - Brands & Consumer. “We are a family owned and operated company that want to provide our customers with the best quality products from New Zealand possible – from our hives to your table. Happy Valley has always had a commitment to providing the best quality products with as little human interference as possible. “We manage the full process ensuring we know the quality of our product from the beginning to the end. From owning

our own land and Manuka plantations, to having a team of 30 Bee Keepers placing our hives in natural environments, our own production and factory teams - it’s even us who package each box of honey and send it into stores around New Zealand- we do it all in house with our family team.” Not all Manuka honey is created equal and unique signature compounds in the honey can vary greatly. This is all related to natural environmental factors and including the purity of the sites the bees collected the honey from and strength of the plant, explains Taylor. Every jar of Happy Valley UMF® Manuka Honey is tested and certified for natural contents and meets both MPI government definition standards and the strict and highly regarded UMF Quality standards.

Source: NIELSEN SCANTRACK Total Supermarkets - MAT to 14/04/2019 Val Sales

Val % Chg YA

Spreads

169,213,730

-0.5%

Honey

56,429,793

-4.0%

Peanut Butter

42,690,368

2.1%

Jam

27,002,823

0.3%

Sweet Spreads

19,686,261

6.6%

Vegetable & Yeast Extracts

14,999,160

-7.0%

Marmalade

6,544,393

-3.1%

Savoury Spreads

1,860,931

63.5%

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

For more info email info@nutbrothers.co.nz or call Jono on 022 072 3739

EASY DOES IT

Quick & easy meals, iconic pies and new vegan options.

asy meals and pies are top of the shopping list for many busy families and people on the go. But discerning consumers now also look for quality ingredients, as well as plant-based and organic options, when buying convenience meals.

Ceres Organics Savoury Mixes At Ceres Organics, convenience doesn’t mean cutting corners. Their new wholefood, plant-based savoury mixes combine the best certified organic ingredients with a little bit of Kiwi-foodie-ingenuity. Invented by Innovation Manager, Marianne Weber, to help consumers create quick easy meals without the need for oils, soy, gums, or preservatives, the three mixes (Burger, Fritter and Omelette) are made of shelf stable, dry ingredients that just need to be mixed with water to be brought to life. “We’ve utilised pulse flours as the base of these unique quick-meals, this means the protein per serve is quite impressive too.” Weber explains. Pulses have become so popular the United Nations declared 2016 the International Year of Pulses. With plant-based and sustainable eating becoming increasingly popular, these mixes have come at just the right time. Most products in the convenience category are chilled or frozen, whereas these mixes save energy by hanging out on a regular shelf. There’s also less likelihood of food waste, consumers can make exactly the right amount and then seal the bag and pop it back in the pantry.

Enna Ye, Ceres Organics Digital Marketing Manager, says that feedback on the mixes has been considerable. “People are loving them, sharing their creations with us, I’m constantly receiving messages asking where they can be bought. Makes my job easy when I have such great content to work with!” The Outstanding New Zealand Food Producer Awards thought so too, awarding the Herbalicious Fritter Mix a bronze medal. Sampling is planned in select stores and the Christchurch Food Show has also been very successful. Feedback from consumers has been hugely positive, resulting in selling out of stock every session. For more see @ceresorganics.

Award-winning Dad’s Pies From humble beginnings making and selling pies out of a family-run dairy at Red Beach in 1981, Dad’s Pies has grown into an impressive operation that is supplying supermarkets, airlines, international markets, foodservice and many more. The business has grown steadily over the years from one small oven in 1981 to its current purpose-built location up the road in Silverdale where Dad’s Pies re-located to in 2001. Fuelled by the passion of Founder and Managing Director Eddie Grooten, who says he is just constantly looking to improve. “Our focus is on being best in class,” he explains. Despite all the upscaling, Dad’s Pies is still a family business that prides itself on using quality ingredients to make a quality product. The family has vowed to be faithful to their belief that pies should taste top-notch, while being nutritious and containing no preservatives, MSG or artificial flavours or colours. Maintaining high standards throughout the company is hugely important when exporting NZ’s national dish around the globe

- you need to get it right! For Eddie, it is now building and growing a successful business to be able to provide people with jobs and financial security that they can build their future with. “Nothing is more rewarding than seeing the people in your company do well,” says Eddie. For the coming months one of the focuses for Eddie and the family is to be able to take out another Gold Award at the NZ Bakels Pie Awards and make it three golds in a row for the commercial category. Eddie is humbled everyday by these awards as it provides his staff with reassurance that their loyalty and hard work is being recognised by our customers. The future is always hard to predict with Dad’s Pies, but we know it will be one to watch.

Howler Hotdogs add vegan to their range Howler Hotdogs are a perennial favourite for kids’ parties, as a nice warm snack after school and winter sports and for ‘takeaway nights’ at home. Just in time for Autumn, Howler Hotdogs have added a Vegan Hotdog and Vegan Mini Muncher Hotdogs to their range to complement their already successful Mini Muncher, Original and Gluten Free hotdogs. Jo Williamson, of Howler Hotdogs, says that development of the Vegan

Hotdog has been the most technically challenging new product development they have undertaken. Having trialled all commercially available vegetarian and vegan sausages they weren’t happy with the flavour or textural properties of any of them, so developed their own vegan sausage. They took the opportunity to test market their prototype at the Vegan Expo in Christchurch before committing to taking the product to market and received overwhelming positive feedback, as well as having the longest queues at the show all day. The feedback from consumers was very much that they wanted more vegan convenience meal options available. “We’ve fielded weekly phone calls, emails and Facebook messages since the show, so are pleased to now have the product available for the market,” says Williamson. Howler Hotdogs focus on not compromising on quality and the convenience of going from freezer to table in under 16 minutes has propelled them to now being the No.1 hotdog brand in New Zealand. The addition of the Vegan hotdogs to their line-up now means there is a truly a hotdog for everyone in the household.

Source: NIELSEN SCANTRACK Total Supermarkets - MAT to 27/01/2019 Val Sales

Val % Chg YA

Convenience Foods Chilled

182,257,740

7.2%

Fresh Meat Pies

54,980,312

1.0%

Fresh Meals

27,933,982

50.4%

Fresh Soup

26,278,825

5.6%

Fresh Pasta

19,091,764

-1.1%

Fresh Pizza

14,791,336

9.7%

Fresh Pasta Cooking Sauce

14,498,669

3.2%

Fresh Pizza Bases

13,153,636

0.4%

Quiche

4,781,394

-21.5%

Convenience Food

4,678,925

17.5%

Chilled Sausage Rolls & Savouries

1,658,356

-4.6%

Fresh Non Pasta Cooking Sauce

410,541

39.3%

Convenience Foods Frozen

139,853,007

11.0%

Frozen Pizza Bases

43,735,373

10.5%

Frozen Meat

26,023,380

15.5%

Frozen Pizza

24,129,911

10.4%

Frozen Party Snack

21,338,874

32.7%

Frozen Full Meals

17,702,248

-4.4%

Frozen Meat Pies

6,923,220

-6.3%

[ category insights ] Meet Beak & Sons’ new ambassador: Israel Dagg An exciting brand has hit the butchery aisle of our local supermarkets: Beak & Sons. Offering a mouth-watering range of succulent slow cooked meats, and bringing a fun freshness to the category. “We want to help make one of life’s everyday decisions an enjoyable one… ’what am I going to cook for dinner?’ Each of our rib and meat cuts are marinated and tenderly cooked by our chefs to guarantee absolute deliciousness. They taste ah-mazing!” says Natalie Vivian, Brand Manager at Beak & Sons. “We’re thrilled to welcome new brand ambassador Israel Dagg, former NZ Rugby Player and wellliked Kiwi household name, to the team. “It’s fantastic having Izzy on board. He has a great sense of humour and a love for good honest food. Together we’ve had a load of fun creating some playful social videos which aim to entertain and show-case how yummy and Beak & Sons new brand versatile the range is,” says Vivian. ambassador Israel Dagg

The Beak & Sons range is available in most good supermarkets nationwide, found in the Butchery chiller. https://www.facebook.com/Beak-Sons-NZ-2171187839633638 https://www.instagram.com/beakandsonsnz/

Herbert Adams Gourmet Pies Herbert Adams has been crafting delicious gourmet pies and pastries for over 100 years, combining quality ingredients with their famous flaky pastry. Increase your frozen department sales today with their slow cooked wine infused pie range. • Slow-Cooked Beef with Caramelised Onion & Cabernet Sauvignon Pie • Slow-Cooked Beef with Shiraz & Cracked Pepper Pie Herbert Adams is proudly represented by Leader. Contact your Leader Rep for more info about the range – food@leadernz.co.nz.

[ profile ]

THE FOURTH INDUSTRIAL REVOLUTION PAVÉ readies for FMCG market disruption

or those in the FMCG business, these are changing times. In fact, one significant report predicts consumer landscapes will change more in the next 10 years than they have in the past 40.* A report from the World Economic Forum says wholesale disruption will redefine every element of business with industry boundaries fading as technology and consumer-centric industries fuse. To deliver optimal consumer experiences, companies will be compelled to leverage extensive ecosystems, doing far less in-house than ever before. Businesses and individuals will collaborate to create full ecosystems that design, make, market and distribute products and services, says the report. So disruptive could this phenomenon be that it is now often referred to as the ‘Fourth Industrial Revolution’.

Industry challenges The FMCG industry is at the forefront of this change, with pressure increasing from new retail models, aggressive competition and advances in digital technology and data science. Established FMCG brand owners are feeling this pain, with pressure on margins, ever growing operating costs and erosion of brand share due to under-investment and the rapid pace of innovation. This is

also driving an abundance of divestment, merger and acquisition activity as companies attempt to rationalise their businesses. Chris Wong, CEO of PAVÉ, says the responses to these challenges typically begin with the least disruptive, starting with cutting the marketing budget, downsizing staff, off-shoring the back-office and outsourcing sales functions. Investment in people, infrastructure and technology in many cases is not even a consideration. However, the results are mostly negative, with brand equity eroding, business performance suffering and local responsiveness declining.

A smarter approach Wong says finding the right solution begins with reviewing the strategic importance of the New Zealand business in a global context and determining which elements must be retained in-house. “Ultimately control and investment in the brands must take centre-stage – as a brand is the only real enduring asset in today’s world. With everything else the question needs to be asked, can others do it faster, cheaper and perhaps even better? This is where new innovative operating models can play a role. “Our response at PAVÉ has been to build a ‘plug and play’ factory-to-shelf model where clients can access best-in-class expertise,

physical and digital capabilities - and benefit from substantial cost savings. Instead of the focus being on operational management, it shifts to key business metrics and what can be done to improve brand performance,” he said. “Multinationals have unique needs and PAVÉ has recognised this. The foundation of a successful engagement begins with full transparency and ongoing visibility. We then deploy a team with deep industry skills that is supported by the latest digital and business intelligence technology. To manage risk, clients’ products are managed to international product safety standards (ISO22000) and their data is protected by robust data and cyber security. Lastly a formal governance structure provides them with confidence that their business is in safe hands.” *Source: Operating Models for the Future of Consumption – A Report by the World Economic Forum’s System Initiative on Shaping the Future of Consumption prepared in collaboration with Accenture

Chris Wong, CEO of PAVÉ, combines a deep understanding of FMCG with strong business disciplines in strategy, finance, process and technology. Formerly a management consultant for global consulting services firm Accenture, he worked on business transformation projects for clients in a variety of industries internationally. Upon his return to New Zealand he worked in private equity where he developed an interest in the FMCG sector. After identifying an emerging trend, he turned his focus to building an advanced sales and distribution service to address the sophisticated requirements of multinationals. www.pave.co.nz

FMCG BUSINESS - MAY 2019

[ good business ]

MILK BOTTLES WIN GOLD AT PACKAGING AWARDS A new sustainable milk bottle made from recycled (rPET) plastics has won two gold medals at the 2019 Packaging Innovation and Design Awards, announced in Sydney on 30 April. Lewis Road Creamery’s recycled (rPET) milk bottles won top honours in the beverage and sustainability categories at the Awards, recgonising the company’s commitment to sustainability through the design of innovative packaging materials. Last August, Lewis Road became the first milk producer in the country to change to rPET bottles made from entirely recycled plastic, meaning no new plastic is created to produce the bottles, which can then be continuously recycled.

“This is an outstanding achievement for our team who have worked really hard with our bottle supplier Alto, to bring these recycled bottles to market and offer New Zealanders a sustainable option in the dairy aisle,” says Lewis Road Creamery founder Peter Cullinane. To coincide with their awards win, Lewis Road has announced it will be transitioning its 300ml flavoured milk and cream bottles to recycled rPET bottles by the end of the year. “We love fresh milk, but not fresh plastic. So anything we can do to reduce new plastics being introduced into the waste stream is a significant step forward. We are delighted that we are now in a position to have all our milk bottles – 1.5 litre, 750ml and 300ml – packaged in these award-winning recycled bottles.” Lewis Road says the move to rPET bottles for its 300ml range of milks and creams is estimated to save approximately 50 tonnes of plastic being produced and imported into New Zealand each year. This is in addition to the 210 tonnes of new plastic saved annually when it introduced the new bottles for its white milk range in August last year.

5–6 October 2019

THE CHOCOLATE AND COFFEE SHOW

IS BACK IN 2019! Your chance to get face to face with more than 7,000 passionate foodies over 2 days at The Cloud on Auckland’s waterfront. Over 80 artisan chocolate, coffee and sweet treats exhibitors, Masterclasses, Barista Zone, Demo Kitchen and much more. Exhibitor stands and event partnerships now available, contact Shaughan 021 744 138 or Dale 021 361 136 www.chocolatecoffeeshow.co.nz

[ good business ]

WORLD-FIRST MUSHROOM PACKAGING Meadow Mushrooms in New Zealand are 100% committed to sustainability and dedicated to eco-friendly packaging. One of their proudest decisions was to move away from using plastic punnets to hold their mushrooms, and in doing so, were able to eliminate the equivalent of 2.5 million plastic drink bottles in just one year. The cardboard punnets currently in use are bio-degradable and compostable, much to the love of loyal mushroom purchasers. In a world first for the food industry, Meadow Mushrooms are now creating green packaging for their products out of mushrooms. With partner the Biopolymer Network and scientists from Plant and Food Research, Meadow Mushrooms are using mushroom stalks to develop a punnet that will replace the current biodegradable punnets. Prototype punnets are currently being tested to offer the same or better protection and maintain the mushroom’s freshness. “The mushroom stalks add extra strength to the punnet compared to the cardboard, even if it gets wet,” says Melanie Rushton, Marketing and Innovation Manager. Mushrooms differ from regular produce in several ways – they are sensitive to moisture, can be affected by exposure to odours in the air, and are very susceptible to bruising and discolouration. Meadow

Mushrooms’ new punnets will be better equipped to manage the sensitivities of mushrooms. Stalk punnets will feature a unique breathable coating and a breathable film, which will allow for an extended shelf life, both in-store and at home. Such results cannot be achieved with regular paper bags alone. Meadow Mushrooms are also currently trialling a bio-degradable film for their products, which if proven successful, will be implemented into their packaging.

[ recruitment ]

10 STEPS IN SUCCESSFUL RECRUITMENT

nvesting in a team of rockstars is the most profitable investment you will make. Here’s how to take the coin-flip out of your hiring process.

1 Create a Rockstar Scorecard Hiring is ideally done across two axes: competencies and organisational fit. Competencies means their skills, abilities and characteristics required for excellence in a role. Organisational fit is a measure of a candidate’s core personality and principles matching your organisation’s culture and values.

Kara Atkinson is a recruitment expert with over 18 years experience in the industry. Kara created her own recruitment business 10 years ago, fuelled by the opportunity to help people continue to build and transform themselves through their career. Kara specialises in Sales & Marketing Executive Roles, recruiting across all industries (particularly in the manufacturing, industrial, B2B and FMCG) and business sizes. www.karaatkinson.com

2 Define Your Rockstar’s DNA The DNA is found in the personality traits that your current Rockstars already share. It’s their core personality traits that have been ingrained from childhood. There is a clear and fundamental difference between DNA and competencies. Competencies and skills can be improved. DNA rarely can.

3 Define Your Employer Value Proposition The top 10 companies in Australia in 2018, according to LinkedIn, have one commonality – a highly compelling Employee Value Proposition. What you expect your team to deliver, to your clients and customers, is what you need to deliver to your employees.

4 Create an Invitation

WHAT YOU REALLY HAVE TO WORRY ABOUT, IS TURNOVER AMONG ROCKSTARS.”

FMCG BUSINESS - MAY 2019

Why do most companies take a standard job description template and post it online? The reason Rockstars typically never interact with these posts is because job descriptions do not speak to their PAIN; do not speak to their VISION. There is no compelling reason to act.

5 Design a 5-Star Candidate Experience Most retail leaders never consider this, but a poor candidate experience makes it harder to attract talent. If your modus operandi is to have 3-5 contingency recruiters (and HR) go into the marketplace with different messages, candidates are bombarded with the same position. Most recruiters rarely call candidates back, or misrepresent renumeration and other key aspects, so they can get a submittal credit.

6 Implement a Predictive Interview Structure What you’re looking to do is de-risk the hiring decision by focusing on real predictors of success; not what most retail hiring managers actually do which is look at like a resume, education, interview ability and then hire on gut instinct. To help you create a 5-star candidate experience, you need Four Stages, including an Initial Assessment, Competency Interview, DNA Interview and Test Drive.

7 The Backdoor Reference Check References are no better than a list of paid endorsements. Run a search on LinkedIn, track the candidate’s previous managers and call them. I need to stress here the confidential nature of the candidate’s job search. It is imperative that you do not put anyone at risk by talking to current employers. In today’s world, it is a major red flag if they tell you they’ve lost contact with a previous manager.

8 The Offer I have seen countless hiring managers make the mistake of ending the courtship too early; taking too long to make an offer, making a low-ball offer, changing the job title, or forgetting that the candidate is a human being. This is a ghosting act that tells the Rockstar you’re not sincere.

9 Onboarding (Roll out the Red Carpet) Don’t crush your new hire’s excitement with a mountain of orientation checklists or throw them in the deep-end with zero preparation. On-boarding, and its first cousin, retention, are forgotten about in the excitement of the hunt. Too many times I’ve seen hiring managers who, once they’ve gotten their Rockstars’ butt to hit the seat, move on to the next thing.

10 Retention (Headhunter Proofing Your Team) Turnover is good. Or at least, the right turnover is good. What you really have to worry about, is turnover among Rockstars. These people should be protected at all costs.

[ legal advice ]

‘USE BY’ AND ‘BEST BEFORE’ DATES

hat do you do when you have purchased too much stock and you aren’t able to sell it by the best before date? Unless your supply agreement says otherwise, the supplier is unlikely to refund or replace any unsold stock. You are then faced with the choice of either throwing out the wasted goods or discounting the goods to sell them more quickly. This article explores your liability and obligations under the Consumer Guarantees Act 1993 (“the Act”) in relation to selling outdated stock and how to avoid this situation arising too often. First, let’s understand the difference between Use By and Best Before dates. A Use By date or Expiry Date is determined by the manufacturer who must meet New Zealand’s health and safety regulations. If stored correctly, a ‘Use By’ date or ‘Expiry Date’ is the last date by which the goods are considered safe to consume before they pose a potential risk to the health and safety of the consumer. As a vendor, you have an overriding duty to ensure at the time of sale that the goods being sold do not pose a risk to the health and safety of your customers. If a product’s Use By Date or Expiry Date has passed, it is presumed that the product is no longer fit for consumption and it is unlawful for you to sell these goods to the public. If you do sell expired goods, the consumer has a right under the Act to require you to either refund the goods or to replace the goods with goods of the same or similar value at their discretion. Goods which have exceeded their Best Before date, may still be fit for consumption although the quality of the goods may have diminished. You can still sell goods which have surpassed their Best Before date provided the goods meet the definition of ‘acceptable quality’ under the Act. Goods will be ‘acceptable quality’ if they are: 1.fit for purpose; 2. acceptable in appearance; 3. free from minor defects (other than minor defects you have advertised to the consumer); 4. safe; 5. durable; AND 6. If a reasonable consumer would regard the goods as being of acceptable quality taking into

account the: type of goods; price; any statements made about the goods on the packaging; the context in which the goods are supplied; any representations made about the goods; and so forth. To preserve the reputation of your business and avoid incurring liability under the Act, any goods beyond their Best Before date should be sold at a reduced price in recognition of their condition. If goods have been discounted, make this clear by using words like ‘special’ or by placing the goods on a clearly marked clearance shelf. Any minor defects like damaged packaging or missing items should be advertised to the consumer prior to purchase at the point of display. A consumer will not be entitled to a refund or replacement if the defect was already known to them.

Claire Vordermann is a Solicitor at Steindle Williams Legal specialising in business and commercial law. www.swlegal.co.nz

Review your supply agreements To avoid being stuck with too much short-dated stock, make sure your supply contracts include an obligation on your supplier to ensure that any goods supplied to you are no less than [X] months from the Use By Date/ Best Before Date at the time of delivery. An appropriate timeframe should be considered having regard to the type of goods being supplied and the demand for such goods. Your staff should then check the expiry or best before dates at the time of delivery and any goods that do not meet the minimum expiry period should be promptly returned to the supplier for refund or replacement. Be aware however that if you do not return the goods within a reasonable timeframe, you may have waived your right to return them.

GOODS BEYOND THEIR BEST BEFORE DATE SHOULD BE SOLD AT A REDUCED PRICE.”

FMCG BUSINESS - MAY 2019

[ profile ]

TOP ACCOLADE FOR HARRAWAYS

Congratulations to Harraways, who scooped the FMCG Business Outstanding New Product 2019 Award for their HARR-OS® Indian Spice!

ore than 180 innovative food and drink products were judged in the Outstanding NZ Food Producer Awards 2019, with 129 receiving a gold, silver or bronze medal. The highest gold medal-winning products were considered for the category Champion and Special Awards, with Harraways HARROS® Indian Spice being named FMCG Business Outstanding New Product 2019. The judges loved HARR-OS and said “it delivered the promised spice, was very moreish and a perfect bar snack.” HARR-OS is versatile and can also be used as a topping for salads and soups – instead of croutons.

Harraways HARR-OS® Indian Spice • Uses premium quality, Southland and Otago grown oats • Is produced and marketed by Harraways in Dunedin – New Zealand’s only oat processor, proudly privately owned and managed, crafting quality oat foods for over 150 years • Baked – not fried • Vegan friendly • No artificial colours or flavours Look out for Harraways HARR-OS® Indian Spice single serve snack packs proudly wearing the Outstanding NZ Food Producer Awards 2019 Champion and Gold Medal. Outstanding NZ Food Producer Awards Medals are an independent endorsement of quality on products. Judging is undertaken blind with flavour, aroma, texture, appearance and innovation accounting for 80% of the mark, with the rest of marks allocated for brand story, packaging and sustainable business practice. For more information visit https://outstandingfoodproducer.nz/ and www.harraways.co.nz 28

FMCG BUSINESS - MAY 2019

HARR-OS is versatile and can be used as a topping for salads and soups.

2019

Willoughby, Sharon Galeon and Midori Wooden Spoon Freezery

Congratulations to the winners of the 2019 Awards!

Supreme Champion

After an exhaustive tasting and assessment of over 180 food and drink products from 100 plus kiwi producers the winners of the 2019 Outstanding New Zealand Food Producer Awards have been announced.

Champions

Thanks to the country’s amazing producers who work tirelessly to deliver amazing products, the team of professional judges and the awards sponsors who make it possible for us to celebrate and recognise New Zealand’s Outstanding Food Producers. For a full list of all award winners see

outstandingfoodproducer.nz

Wooden Spoon Boutique Freezery – Blackcurrant Crunch Ice Cream

Emerson’s Dairy Champion: Wooden Spoon Boutique Freezery – Blackcurrant Crunch Ice Cream Farro Earth Champion: Chia Sisters Bottled by the Sun – Nelson Apple and Boysenberry Juice Ara Wines Paddock Champion: Provenance Lamb by Provenance Meat Water Champion: East Rock – Gisborne Tarakihi NZ Life & Leisure Spirit of New Zealand: Whitestone Cheese Fresh.co.nz Outstanding Drink Award: Chia Sisters Bottled by the Sun – Nelson apple and boysenberry juice Label & Litho Outstanding Packaging Award: Barker's of Geraldine – Fruit for Cheese Range FMCG Business Outstanding New Product Award: Harraways HARR-OS Oat Bites Indian Spice Outstanding Sustainability Award: Roebuck Farm, Leaves + Shoots Outstanding Start Up Business Award: Pastrami & Rye Outstanding Free-From Award: Thoroughbread Foods, Paleo Gold and Paleo Fruit Loaf

Florence and Chloe Van Dyk

e, Chia Sisters

People’s Choice Awards Coast Outstanding Food Producer: Whitestone Cheese Coast Outstanding Farmers' Market: Otago Farmers' Market

Thanks to our sponsors: NZ

& Leisure INSPIR ING NEW ZEAL ANDERS

CELEBRATING OUTSTANDING NZ PRODUCERS

ellington’s Wooden Spoon Boutique Freezery has taken top honours in this year’s Outstanding NZ Food Producer Awards, being named Supreme Champion, as well as Emerson’s Dairy Champion. Wooden Spoon Boutique Freezery received the awards for their Blackcurrant Crunch ice cream. Founders Sharon Galeon and Midori Willoughby say the creation of Blackcurrant Crunch was the result of a happy confluence of events. A group of Otago Girls High School students asked Wooden Spoon Boutique Freezery to help create a new flavour for their Young Enterprise Scheme called Spoon Me, and then coincidentally the team from ViBERi Organic Blackcurrants got in touch. This serendipitous set of events led to the creation of the pretty purple ice cream, which the judges praised for its crunch and fruity flavour. Wooden Spoon was founded in Wellington in 2011, specialising in small batch, hand-crafted ice cream made with quality ingredients. Their flavours are inspired by memories from their childhood, adventures to new places and local New Zealand treasures. Wooden Spoon has a 30

FMCG BUSINESS - MAY 2019

history with the Outstanding NZ Food Producer Awards having won awards every year. In 2018, they received a Gold Medal for Wooden Spoon Boutique Freezery Ca Phe Da and a Silver Medal for their Chocolate-Covered Banana. The previous year they were a runner-up in the dairy category with Wooden Spoon Boutique Freezery Movie Night Ice Cream.

The Outstanding NZ Food Producer Awards 2019 Champions are: • Supreme Champion; Wooden Spoon Boutique Freezery, Blackcurrant Crunch Ice Cream (Wellington). The judges said they “loved the crunch, the delicious mouthfeel and the creamy, natural flavour.” • Emerson’s Dairy Champion; Wooden Spoon Boutique Freezery, Blackcurrant Crunch Ice Cream (Wellington) • Farro Earth Champion; Chia Sisters Bottled by the Sun, Nelson Apple and Boysenberry Juice (Nelson). The judging panel said this juice “had natural colour and flavour and was a great representation of apple and boysenberry.”

Award-winning Provenance Lamb by Provenance Meat

• Ara Wines Paddock Champion; Provenance Lamb by Provenance Meat (Otago & Southland). The judges commented that the lamb was “juicy and moist with great flavour.” • Water Champion; East Rock, Gisborne Tarakihi (Gisborne). Judge Mat McLean chef/restaurateur of Palate in Hamilton said, “The care in processing the fish was evident in the fish which had a superior texture and flavour. The flavour was just fantastic.” A further seven Special Champion Awards were announced: • NZ Life & Leisure Spirit of New Zealand Award; Whitestone Cheese • Fresh.co.nz Outstanding Drink Award; Chia Sisters, Bottled by the Sun Nelson Apple and Boysenberry Juice (Nelson) • Label & Litho Outstanding Packaging Award; Barker’s of Geraldine, Fruit for Cheese Range (Geraldine) • FMCG Business Outstanding New Product Award; Harraways, HARR-OS Oat Bites, Indian Spice (Dunedin) • Outstanding Sustainability Award; Roebuck Farm, Leaves + Shoots (Taranaki) • Outstanding Start-Up Business Award; Pastrami & Rye, Pastrami (Auckland) • Outstanding Free-From Award; Thoroughbread, Paleo Gold and Paleo Fruit Loaf (Horowhenua, Levin) Also announced were the Coast People’s Choice winners, chosen by popular online voting from Kiwi food lovers. They were: • Coast People’s Choice Favourite Producer; Whitestone Cheese (Oamaru) • Coast People’s Choice Favourite Farmers’ Market; Otago Farmers Market (Dunedin)

Professional judging panel For the third year, well-known New Zealand food writer and champion for local food products, Lauraine Jacobs was head judge. She oversaw a panel of 20 judges who assessed more than 180 food and drinks during judging at AUT School of Hospitality & Tourism. Jacobs noted it was great to see the innovative ways food producers had used premium ingredients which were predominantly grown and harvested in New Zealand. Medal winners deserve the Outstanding NZ Food Producer Award they have earned, said Jacobs. “Consumers are well advised to seek out the delicious and exciting foods such as ice-creams, drinks and juices, honey, pâtés, meats, pickles, bread and so much more which will be carrying 2019 medals.” Organiser of the Awards, Kathie Bartley

said it was wonderful to see the breadth and depth of entries this year and the increase in entries from the south. She observed the ‘Free-From’ category, introduced for the first time, was popular with producers. “With many new products being created to cater for specialist diets including glutenfree, paleo, dairy-free and vegan this is a growth area. It’s wonderful to see so many of these products are packed with flavour, making them a delicious choice for any food lover.” After three years of awards, Bartley said there are over a quarter of a million Outstanding NZ Food Producer Awards medal stickers on food and drink products around the country. “Food lovers should keep an eye out for products with our Champion, Gold, Silver and Bronze Medal stickers, these are an independent endorsement of quality—a promise that the food and drink products are delicious!” Bartley thanked the talented team of food professionals who gave their time to judge the 2019 awards. The judging panel included specialist sustainability judge Emily Smith, as well as Enzo Bettio, Kathy Paterson, Mat McLean, Mikey Newlands, Andy Aitken, Richard Emerson, Aaron Pooch, James Thomas, Lucy Corry, Tamara Rubanowski, Allyson Gofton, Anna King Shahab, Kimberley Dixon, Amanda Thompson, Hayley McLarin, Janene Draper, Lorna Subritzky, and Michelle Jones.

(L to R) FMCG Business Publisher Dale Spencer, Harraways Marketing Manager Peter Cox and FMCG Business Editor Tamara Rubanowski.

(L to R) Award organizer Kathie Bartley, Sharon Galeon from Wooden Spoon Freezery and Award organizer Nicola McConnell.

Lorna Subritzky from Coast and Whitestone Cheese CEO, Simon Berry.

FMCG BUSINESS - MAY 2019

[ events ]

WHAT’S ON AUGUST 14-15 C&I EXPO ICC Sydney, Australia www.candiexpo.com.au 21 FMCG BUSINESS MARKETING SUMMIT Auckland, NZ fmcgsummit.co.nz 21 NZ FOOD AWARDS Powered by Massey University Finalists announced https://www.foodawards.co.nz/ competition-info

SEPTEMBER

The NZ Champions of Cheese will be announced on 21 May.

MAY 21 NZ CHEESE AWARDS Trophy Winners Hamilton, NZ https://nzsca.org.nz/cheeseawards/

14 GROCERY CHARITY BALL Auckland, NZ https://s2nevents.eventsair. com/2019-grocery-charity-ball/ book/Site/Register 18-19 CONVENIENCE & IMPULSE NZ EXPO 2019 Auckland, NZ www.candiexpo.co.nz

OCTOBER

24-26 THE FOOD SHOW Wellington, NZ https://www.foodshow.co.nz

5-9 ANUGA Cologne, Germany http://www.anuga.com/

31 NZ FOOD AWARDS Powered by Massey University Entries close https://www.foodawards.co.nz/ competition-info

5-6 CHOCOLATE & COFFEE SHOW The Cloud, Auckland, NZ www.chocolatecoffeeshow.co.nz

JUNE 12-15 FIELDAYS Hamilton, NZ https://fieldays.co.nz/

JULY 25-28 THE FOOD SHOW ASB Showgrounds, Auckland, NZ https://www.foodshow.co.nz

15 32

1-7 CHOCOLATE WEEK New Zealand nationwide www.nzchocolateweek.co.nz 18 WORLD CHEESE AWARDS Bergamo, Italy 23 NZ FOOD AWARDS Powered by Massey University Winners announced https://www.foodawards.co.nz/ competition-info

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 - MAY 2019

JOIN US AT THE FMCG BUSINESS MARKETING SUMMIT!

eet our inspiring speakers at the FMCG Business Marketing Summit on 21 August! The line-up includes many well respected industry experts – here’s a first sneak preview.

REGAN GRAFTON – Chief Creative Officer, Ogilvy New Zealand Over the last three years, Regan’s leadership has produced campaigns which have transformed brands and delivered spectacular results. Regan is a proven strategic thinker and brings in-depth capability across all categories. He has a passion for FMCG and has worked with brands such as Sealord, Coca-Cola, Cadbury, Sanitarium, Lion, Pak’n Save and Kimberly-Clark. In 2018, Regan helped Ogilvy take out the Grand Axis at the New Zealand Axis Awards, along with international trophies from shows such as Cannes, D&AD, Award in Australia and One Show in America. On a personal level, Regan also has 38 Cannes Lions to his name.

CASSIE ROMA – Head of Content, The Warehouse Group Cassie is truly one of a kind in tech and leadership, working to drive creativity in content, delivering long-term views of deeply embedded brand strategy, increasing the positive impact of social media across channels, dialling-up value through the influencer partnerships and teaching brands how to scale their messages contextually. She’s also spent a lot of time steering the ‘content, social media and digital storytelling ship’ for brands like Air New Zealand, ANZ Bank, Mighty River Power, The Warehouse Group and NZME. Cassie has been awarded and recognised globally as a thought leader in the field of storytelling for brands, women in tech, digital marketing, and the economy of influence. She’s also a published writer and keynote speaker.

LAURA MAXWELL - Chief Digital Officer, NZME Laura joined The Radio Network as Commercial Director in 2013, moving to the role of Group Director Digital media in 2014. In 2015, Laura was promoted to Group Revenue Director, transitioning to Chief Commercial Officer as part of the NZME transformation. Prior to joining the NZME family, Laura was General Manager/Director for Yahoo! New Zealand. Laura has over 25 years of experience in media and is well respected in the industry, having held roles including Sales Director for APN Outdoor and Buspak New Zealand. She is immediate past Chair of the Interactive Advertising Bureau and a current Board member. Early Bird tickets ($295.00 +GST) available now at www.fmcgsummit.co.nz

EARLY BIRD REGISTRATION now available for the inaugural

MARKETING SUMMIT 2019 21 August, Ellerslie Racecourse, Auckland

Limited

early bird tickets only

$295 + GST Business owners, marketing and brand managers can look forward to a full-day series of curated sessions to help motivate marketing change in your organisation, along with inspiring talks, innovative ideas and engaging conversations. The FMCG Business Marketing Summit brings together some of Australasia’s most experienced marketing experts to help your business stay ahead of the game in the fast-moving grocery and retail sectors.

An informative and dynamic educational event for the FMCG and retail industries. SPEAKERS INCLUDE:

CASSIE ROMA Head of Content, The Warehouse Group

MICHELE TEAGUE Ex-General Manager, Marketing, Kmart Australia

REGAN GRAFTON Chief Creative Oﬃcer, Ogilvy New Zealand

KATHERINE RICH CEO, NZ Food & Grocery Council

Other speakers to be announced in research, shopper marketing, media plus packaging and design

Wednesday 21 August 2019 Ellerslie Racecourse, Auckland

Hosted by

rocery Saturday 14 September 2019 New Zealand Room SKYCITY Auckland Convention Centre 6.30pm till 1am

If youâ&#x20AC;&#x2122;d like to know more or book a table please contact camilla@s2n.co.nz OUR TRUST SPONSORS

Out & About

(L to R) Otis and Sarah Frizzell from The Lucky Taco and Yolanta Woldendorp from NZ Life & Leisure, at the Outstanding NZ Food Producer Awards in Auckland.

g and Cider International Brewin Trophy winners of the don’s Guildhall. Lon side out te bra Awards 2019 cele

It takes a lot of fresh food – including 18kg of Jazz apples per week to power up the Warriors! (L to R) Nathaniel Roache, Andrew Keaney (T&G Global), Adam Keighran and Chanel Harris-Tavita.

SNAP & WIN!

At the Outstanding NZ Food Producer Awards in Auckland (L to R) Johnathon Bardsley and Jono Wood from Nut Brothers and Nicky Donkers from Barkers’ of Geraldine.

Has your team moved to new premises, or been part of a fun event, great harvest, or promotional activity? Send us your favourite snapshots to be in to win a hamper of goodies from I Love Baking. The cookies are partially sweetened with date puree and contain the goodness of wholegrain oats. They come in a range of varieties, and even as individual ‘BIG’ cookies. They are made with butter, and don’t have any nasties or palm oil. Hugely popular since launching, now one lucky winner will receive a selection of the range valued at $50.

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

FMCG BUSINESS - MAY 2019

www.theshout.co.nz May 2019

THE BUTCHER AND BREWER

Plus Behemoth Brewing moves core range to cans

Behemoth to crowdfund their new brewpub You can be part of it pldg.me/behemoth

PLUS MEAD n SHEEP MILK SPIRITS n FINE WINE NEW ZEALANDâ&#x20AC;&#x2122;S LARGEST LIQUOR AUDIENCE

Discover Provenance

New Zealand Wine of the Year Awards BEST WINE OF PROVENANCE TROPHY WINNER AUNTSFIELD

Discover New Zealandâ&#x20AC;&#x2122;s best kept secret

www.auntsfield.co.nz

[ editorial ]

Tantalise those taste buds THIS MONTH in The Shout we’re going a little niche, a little outside the box, if you will. While we do love a The Shout Editor spritzy Sauv and Charlotte Cowan a classic G&T, there’s always time to try something new and there’s so much on offer in this month’s issue. Just when you thought you’d tried all the gins and vodkas around, Whangamata’s Sam Brown is here to blow your mind. The 34-year-old has recently launched The White Sheep Co., a range of spirits made from sheep milk. Yes, you read that right. For more on Sam and his sheepy creations, head to pg 9. In the world of wine this May, we’re taking a look at both the organic sector and fine wine. Whilst there’s nothing new about organic wine, it’s still a pretty small category in terms of hectares planted in New Zealand. Sip NZ’s Caro Jenson takes a look at how we can further promote organic wine in this country on pgs 1011. And on pgs 12-15 Cameron Douglas shares his picks for stunning fine wines of New Zealand - but don’t worry, they won’t all make your credit card run for cover. And finally, our beer writer John Oszajca shares some background on one of the oldest drinks known to man – mead, aka honey wine. Sound like something you’d add to your beer fridge? Or is that wine fridge? Find out more on pgs 16-17. So if this issue doesn’t encourage you to broaden your palate and taste something different, we don’t know what will! Have a great May, Shout readers!

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

CONTENTS May 2019 4

Industry news and insights

10 An organic outlook Sip NZ’s Caro Jensen explores whether organic wine is really taking off 12 Discovering fine wine Tasting notes from Cameron Douglas MS 16 Honey, I’m home Beer writer John Oszajca gives us the lowdown on mead

On the cover: Behemoth Brewing Behemoth Brewing, one of New Zealand’s fastest growing craft brewing companies, is making their new home on Auckland’s Dominion Road with a brand new brewpub. The brainchild of brewer Andrew Childs and wife Hannah Miller Childs (a talented butcher), the brewpub will be launched with the help of a crowdfunding equity campaign. Head to pg 7 for more information.

www.theshout.co.nz May 2019

THE BUTCHER AND BREWER

Plus Behemoth Brewing moves core range to cans

Behemoth to crowdfund their new brewpub You can be part of it pldg.me/behemoth

PLUS MEAD n SHEEP MILK SPIRITS n FINE WINE NEW ZEALAND’S LARGEST LIQUOR AUDIENCE

Editor’s picks Pyramid Valley Angel Flower Pinot Noir 2016 From Pyramid Valley’s Angel Flower vineyard, this Pinot Noir is one of Cameron Douglas MS’ picks for a fantastic fine wine of New Zealand. And it’s just one example from Pyramid Valley’s superb collection. For more, take a look at Cameron’s tasting notes on pgs 12-15. The White Sheep Co. Sheep Milk Vodka You may think you have tried everything when it comes to spirits but Whangamata’s Sam Brown has come up with something truly original. This vodka really is made from sheep milk and it scored a trophy at the recent New Zealand Spirits Awards. For more on this unique spirits range, head to pg 9. Lone Bee Sparkling Mead Made using the best clover and Manuka honey from around New Zealand, Lone Bee Sparkling Mead is crisp, dry and refreshing. Haven’t tried mead yet? Learn all about this age-old drink on pgs 16-17. MANAGING DIRECTOR-PUBLISHER Dale Spencer dspencer@intermedianz.co.nz PUBLISHED BY The Intermedia Group Ltd 505 Rosebank Road, Avondale Auckland, 1026, New Zealand ph: 021 361 136

EDITOR Charlotte Cowan ccowan@intermedianz.co.nz ph: 021 774 080 SALES DIRECTOR Jaqueline Freeman jfreeman@intermedianz.co.nz ph: 021 286 7600

FMCG BUSINESS: THE SHOUT - MAY 2019

[ news ]

Auckland Wine Week announced AUCKLAND WINEMAKERS are banding together to showcase the best the region has to offer at the first-ever Auckland Wine Week being held from 13-23 June. With the winemaking regions of Waiheke Island, West Auckland and Matakana joining forces, wine lovers will find local wineries abuzz with events and cellar door tastings, Auckland-centric tastings and specials at participating retailers, restaurants and bars, as well as the huge wine tasting event, Winetopia. With more than 50 vineyards and wineries involved, organiser Rob Eliott says the inaugural event will shine a well-deserved spotlight on the region’s exciting winemaking scene. “Auckland is one of New Zealand’s oldest winemaking regions thanks to the mostly Croatian families who set up here in the early 1900s and home to the oldest family-owned winery in the country,” he says. “There is a whole world of wine to be discovered on Auckland’s doorstep.” For more information, visit www.aucklandwineweek.co.nz

Hawke’s Bay winegrowers proclaim extraordinary vintage HAWKE’S BAY’S 2019 vintage has been named as one for the history books. According to Hawke’s Bay Winegrowers, the arrival of the New Year brought with it the long, hot, sunny summer days with moderate-cool nights for perfect ripening conditions, whilst preserving fresh acidity. Superb harvest climatic conditions provided the luxury of optimal picking decisions not hurried by the threat of rain. The result is an outstanding year for Hawke’s Bay wines, according to the region’s representatives and while yields are slightly down, there is exceptional quality across all varieties. “The 2019 vintage will produce wines that will further establish Hawke’s Bay as one of the great wine regions of the world, recognised in particular for its Chardonnay, Syrah and Cabernet Sauvignon/Merlot blends,” says Hawke’s Bay Winegrowers Chairman, Michael Henley. “These are very good times for our fantastic region.”

In the next issue of

ON TREND Share your favourite product or exciting new launch with our readers! FOR BOOKINGS, CONTACT The Shout NZ Sales Director

Jacqueline Freeman jfreeman@intermedianz.co.nz 021 286 7600

What’s on May 1-6 Craft Beer Capital Hopstock Wellington www.craftbeercapital.com May 11 Greater Wellington Brew Day 2019 Brewtown, Upper Hutt www.cmnzl.co.nz/brewday/ June 7-30 F.A.W.C Hawke’s Bay www.fawc.co.nz/ June 14-15 Winetopia Shed 10, Auckland www.winetopia.co.nz/ June 22-July 1 Auckland Beer Week Auckland www.facebook.com/aklbeerweek/ June 29 GABS ASB Showgrounds, Auckland www.gabsfestival. com/aucklandintro

[ industry insights ]

Christchurch hosts Pinot Noir NZ for first time in its 20-year history A 115-STRONG collective of New Zealand Pinot Noir producers are bringing their international celebration to Christchurch for the first time in 2021, shining the global spotlight on one of New Zealand’s most exciting wines. Pinot Noir NZ’s spectacular three-day celebration is held every four years and is widely considered to be one of the best Pinot Noir events on the planet. Pinot 2021 will be held from Tuesday 23rd – Thursday 25th February. The last event was held in 2017, a sell-out event on Wellington’s waterfront with 117 wineries bringing more than 600 wines to 500 international industry influencers. International wine luminaries like Jancis Robinson, Andrea Frost and Elaine Chukan Brown attended, with Andrea Frost describing New Zealand as “one of the most dynamic and exciting Pinot Noir regions on earth”. Pinot Noir 2021 builds on this legacy, aiming to see New Zealand Pinot makers recognised as international thought leaders, and spark increased demand for New Zealand wine. The celebration attracts some of the greatest international minds on the subject of Pinot Noir – from visionaries and Amber Silvester industry leaders, through to enthusiasts – and 2021 promises to deliver another aspirational and New Zealand Winegrowers thought-provoking programme. A new brand has also been introduced for Pinot Noir 2021, giving it a Communications Manager fresh look and feel. Adding to the anticipation, for the first time in its 20-year history the event will be hosted in Christchurch. The committee are planning a celebration of Pinot Noir in venues across the central city, with events for Cantabrians and visitors, as well as a memorable programme for guests from around the world. The prestigious event will be co-chaired by Helen Masters, head winemaker at Ata Rangi, and Penelope Naish, co-owner of Black Estate. “Christchurch really stood out for its energy and collaborative approach,” says Masters. “It’s a fascinating city, the speed with which it’s evolving makes it an extraordinary destination for our guests to explore.” It will be a celebration you won’t want to miss!

Tourism as a driver of growth IT HAS been well known for the last 10 years that New Zealand has a solid tourism industry, people love to come here, look at the sights and spend their hard-earned foreign currency. But what we as a brewing industry have not always been so good at was placing a value on those tourists. The recent NZIER report ‘Brewing in New Zealand’, commissioned by the Brewers Association, touched on the international visitor spend on beer. The majority of New Zealand beer exports are sales to tourists. These should be considered exports but don’t show up as official export statistics. Seventeen percent of food and beverage sales are to international tourists, which would translate to $242 million in beer sales if tourists spent the same share on beer as Kiwis. So what does this mean? That means about 10% of beer in New Zealand is sold to international visitors. A substantial chunk, if you think about it. While no doubt more and more visitors are coming here for specific beer experiences, such as festivals, and our cousins across the ditch who can pop over for a food and beer weekend easily. Currently we don’t market ourselves as beer destination very well. Unlike the wine sector who have built a substantial brand on the back of the location and experiences on offer here in New Zealand. While we are heading into the quiet winter months for tourism, things will ramp up again next summer where no doubt our international visitor numbers will continue to grow. On the back of this, the industry needs better understand the value of these visitors and work together to better market ourselves as a beer destination. Because we certainly have a lot to offer.

Dylan Firth Executive Director, Brewers Association of New Zealand

FMCG BUSINESS: THE SHOUT - MAY 2019

[ cover story ]

THE BUTCHER AND BREWER

Behemoth Brewing announces crowdfunding for their new brewpub, plus move to cans.

Hannah Miller Childs and Andrew Childs

BEHEMOTH BREWING, one of New Zealand’s fastest growing craft brewing companies is making their new home on Auckland’s Dominion Road. Behemoth, which turns six years old next month, started out as a wistful dream of Andrew Childs, whom at the time was a lawyer and avid home brewer. Winning a home-brew competition in Wellington propelled him into the world of contract brewing and Behemoth was born. The years that followed have kept Childs, affectionately known as the The Beer Giraffe (due to his great height), busy with bringing out over 120 different beers in that time and almost as many cheeky antidotes. Being named National Brewery of the Year 2018 by SOBA (Society of Beer Advocates) this year left the Behemoth team humbled and astounded, a long way to come from such humble beginnings. But, as Childs says, “there is just one thing missing... a brewery!”. Childs, and wife, Hannah Miller Childs, looked at locations in Auckland for 18-months

before landing their site on the corner of Charles Street and Dominion Road. A journey that began with the idea for a small brewpub, somewhere where Childs could play with new beer ideas on a pilot kit and Miller would be able to showcase her New Zealand charcuterie (produced under the label, A Lady Butcher), quickly grew. This led the duo to engage an architect and begin designing a space to include a full production brewery, a test brewery, restaurant and bar; i.e. a full brewpub experience. The growing local and export market (up from two to 11 export markets in 2018), means Behemoth is expected to quickly grow into its new home from a production perspective, but this pair plans go much further. With the addition of a hospitality venue, Behemoth’s home aims to offer the full package. They plan to entertain with

Core range now in cans Behemoth’s move from 500ml bottles to 330ml cans for their core range products has been and exciting one. Cans are the way forward in many ways. They provide less packaging, reduce the beer from oxidising, and are easier to recycle. And in addition to being greener, cans are also more portable and chill down a lot faster than their bottle counterparts. Perfect for hiking, the beach, and taking up less fridge space.

not only award-winning, innovative beers, but also a complete nose-to-tail menu. Miller comes to the table with a wealth of culinary knowledge, having started her career by studying culinary arts in New York, then following her passion for food around the world in kitchens, front of house, and butcheries. Bringing home a Silver Medal as part of the New Zealand Butcher Team in the 2018 World Butcher’s Challenge and with awards for her selection of cured meats, it’s fair to say that Miller knows her way around the knife. But, she says it’s more than that. “We’re excited to host our guests at Churly’s (the proposed brewpub’s name) and give them the opportunity to be part of the story,” she says. “By offering butchery classes, brewery tours, and of course interactive beer and food matches, we hope that people feel involved and excited to come back.” “We’ll have plenty of vegetarian options as well. My best friend is vegan.” So, mark your calendars for the 30th of May. Behemoth Brewing Company is launching their PledgeMe Equity Crowdfunding campaign and would love for you to join them in their beer-y adventures. Interested? Register your interest at: pldg.me/behemoth FMCG BUSINESS: THE SHOUT - MAY 2019

[ awards ]

GETTING INTO THE SPIRIT OF THINGS The winners of the inaugural New Zealand Spirits Awards have been announced, and here they are… THE WINNERS of the inaugural New Zealand Spirits Awards have been announced, with Kiwi distilleries taking home 14 Gold Medals and seven trophies. Seventeen local and overseas judges – including The Shout’s Tash McGill – blindtasted more than 250 spirits over two days in March and the overall winners were revealed at a gala dinner at Wellington’s Embassy Theatre on May 10. “The NZ Spirits Awards have exceeded our expectations,” says Spirits New Zealand

Chief Executive, Robert Brewer. “We would have been very happy to get 100 entries, but 254 entries is truly amazing in its inaugural year. It is also a really solid indication of the growing strength of the New Zealand spirits industry, since almost half of these entries were New Zealand distilleries and products,” he says. Local Gold Medalists include Juno, Scapegrace, Thomson and Denzien. For a full list of medal winners, visit www.spiritsawardsnz.nz.

The trophy winners Best New Zealand in Category - Botanical & Other Spirits Elemental Grapefruit & Hops Bitters Best Overall in Category - Botanical & Other Spirits Dolin Vermouth Rogue Best Overall in Category – Brandies Remy Martin XO

Denzien Te Aro Dry Gin took home two trophies

New Zealand in Category – Gin Denzien Te Aro Dry Best Overall in Category – Gin Denzien Te Aro Dry Best New Zealand in Category – Liqueurs Lewis Road Creamery Chocolate Cream Liqueur Best Overall in Category – Liqueurs Lewis Road Creamery Chocolate Cream Liqueur

Seventeen local and international judges blind-tasted each spirit

Best Overall in Category – Rum Pusser’s Rum

Thomson Whisky Two Tone won the NZ whisky category

Best New Zealand in Category – Vodka The White Sheep Co. Sheep Milk Vodka Best Overall in Category – Vodka Grey Goose Best New Zealand in Category – Whiskey Thomson Whisky Two Tone Best Overall in Category – Whiskey Talisker 10 YO

Judges Keith Tibble and Tash McGill

FMCG BUSINESS: THE SHOUT - MAY 2019

New Zealand Innovation Award TeKiwi 100% Blue Agave Spirit

[ Q&A ]

BAA, BAA, GIN SHEEP Turning sheep milk into spirits? We’re intrigued… MORE THAN three years ago, Whangamata resident Sam Brown decided to make spirits out of sheep milk. How did that work out? Well, earlier this year, the 34-year-old launched The White Sheep Co. and his Sheep Milk Vodka won a category trophy at the 2019 New Zealand Spirits Awards, so it seems things are moving along quite nicely. We grabbed a chat with Brown to find out more…

Why did you decide to create spirits using sheep milk? “I was working overseas [in China] at the time and had friends form different parts of the world. One night we were out having a few drinks and decided to have a toast for each of our countries. We had some tequila for Mexico, brandy for France and whiskey for Scotland – then it got to me and I just drew a blank, there isn’t a unique spirit that people instinctively associate with New Zealand the same way that tequila is to Mexico or brandy to France. This was the ‘lightbulb’ moment that got me thinking and eventually led to sheep milk.”

of home brew beer and spirits at home with mates when I was younger. We would name each batch (a vodka named ‘one outs’ is fondly remembered) and still joke about it to this day.”

Sam Brown

How does the taste of sheep milk spirits differ from traditionally tasting vodka or gin? “The long fermentation time (12 days) means a lot of the sheep milk flavour carries over to the finished spirit. We also only perform a single distillation, which is quite different to other vodkas. Multiple distillations essentially strip away the original flavours but we don’t want to do that as we feel it would defeat the purpose of using such a unique and high-quality base ingredient.”

How long did it take to perfect the recipe?

Who is your target market and what has been the reception so far?

“Once I had the idea in mind, I set about doing a lot of research into what was required to turn sheep milk into alcohol. This meant a lot of late nights reading up on fermentation, distillation and different types of yeast, then doing various calculations and forming hypotheses to test. After that, it was a lot of trial and error and taste-testing to get it right. It’s been a 3+ year process from start to finish and a lot has gone into it.”

“Anyone that wants to try something new and unique. Craft spirits have really come into their own over the past few years and it’s great to see people trying new things. The reception so far has been great – even better than expected. Because it’s such a unique product people are keen to know more about how it’s made and the process involved.”

Did you have any prior distilling experience? “Prior to starting this project, I did not have any formal distilling experience other than making a few batches

The White Sheep Co. range includes Sheep Milk & Honey Gin, Sheep Milk Cream Liqueur and Sheep Milk Vodka and is available at select liquor stores and bars throughout New Zealand. For more information, visit www.thewhitesheepco.com

Sheep Milk & Honey Gin

Sheep Milk Vodka

FMCG BUSINESS: THE SHOUT - MAY 2019

AN ORGANIC OUTLOOK

How can Kiwis be encouraged to take the organic route when it comes to wine production and consumption? We asked Caro Jensen, Co-founder of Sip NZ and drinkfo.com for an insight. THE ORGANIC wine category is continuing to grow, as producers increasingly focus on sustainable practices and conscious Caro Jensen consumers demand wines produced on vineyards cultivated without chemical pesticides or fertilisers. International research company IWSR is forecasting that global sales of organic still wine will top one billion bottles by 2022, up from 676 million last year and nearly three times the 349 million bottles sold in 2012. The majority of organic wines are currently sold in Europe, with Germany, France and the UK accounting for 50% of the market. But while the growth in the organic wine category sounds promising, the overall market share of organic wines remains surprisingly low at 3.6% in 2018, according to IWSR’s study released late last year. Here in “clean, green New Zealand”, the majority of wineries are members of Sustainable Winegrowing New Zealand (SWNZ), a voluntary, industry-wide initiative led by New Zealand Winegrowers which aims to provide a ‘best practice’ model for both vineyard and winery. For many producers the switch to a more 10

FMCG BUSINESS: THE SHOUT - MAY 2019

sustainable operation is simply the right thing to do - accredited or not. It’s a way of future-proofing their operation commercially as well as ethically, responding to consumer demands and setting-up their business for generations to come. But despite a strong commitment to sustainability, only 1,715 hectares are currently certified organic vineyards, accounting for 4.5% of the total vineyard area in New Zealand. Meanwhile environmentally and healthconscious Kiwis are increasingly concerned about what they eat and drink. The 2018 OANZ Organic Market Report which was released mid-2018 shows retail sales of organic products are growing twice as fast as conventional products in New Zealand, up 8.1% per year against non-organic products at 4.8% per year with 67% of respondents stating that the main reason for choosing organic products was “to look after my own and my family’s health”. No doubt there is plenty of potential in the organic category here as well as overseas so how are we going to tap into that? Organic, biodynamic, natural, Demeter, Bio, Lo-Fi, fair trade…the list seems endless. Wine is already an intimidating and complex product and consumers are unlikely to change their purchasing behaviour by confronting them with another layer of

DESPITE A STRONG COMMITMENT TO SUSTAINABILITY, ONLY 1,715 HECTARES [IN NZ] ARE CURRENTLY CERTIFIED ORGANIC VINEYARDS.”

[ wine feature ] accreditations, symbols, stickers and underlying standards - which often require an in-depth understanding of vineyard practices. Producers understandably choose the accreditation that suits their business and ethical goals the most, consumers however crave one global system with clear and easy to understand guidelines. Education is one way to take advantage of organic opportunities and to motivate consumers to actually choose organic wines over conventional ones. Organic producers and their trade partners also need to make organic wines relevant and approachable to become part of consumers’ conscious decisions and trending eco-lifestyles, rather than waiting for wine drinkers to “discover” them. Industry-wide initiatives such the Organic Wine Week (17-23 September) are a great example to help raise the profile of homegrown organic wines and offer consumers new ways to experience them. We look forward to seeing many more of these in the future.

Fully certified NZ organic wineries Aurum Bellbird Spring Bellhill Black Estate Brightside Carrick Churton Clos Henri

Organic wine around the world

by -2.1% (CAGR 2017- 2022), but organic wine is expected to increase 13.3%, to 17m cases.

The UK While overall total wine consumption in the UK is in decline, organic wine volume is expected to post a compound annual growth (CAGR) of 9.4% 2017-2022. Consumers in the UK are paying an average 38% more for a bottle of organic versus nonorganic wine. About 72% of organic wine in the UK is Old World, with France, Italy and Spain at the forefront.

Germany

The USA

The organic wine market in Japan is relatively well-developed and already represents around 10% of total still wine sales, thanks to an average growth rate of 8.2% over the past five years. This is expected to slow over the forecast period 2017-2022, but the segment will nonetheless considerably outperform the overall category. The vast majority of organic wine in Japan is imported.

Total still wine consumption is increasing in the US, and though still a niche category, organic wine is slowly taking share from non-organic. Total wine volume in the US is forecasted to increase about 1% CAGR 2017- 2022, with organic wines expected to post 14.3% growth.

France Organic wine in France, 99% of which is from French producers, is gaining strongly and now accounts for just under 4% of the overall still wine category. Total wine in France is forecasted to decline

Dog Point Vineyard Domaine Rewa Domaine Thomson Fancrest Estate Felton Road Fromm Winery Greenhough Vineyard Greystone Wines Hans Herzog Huia

Kaimira Estate Konrad Mahana Mammoth Milton Vineyards Mount Edward Muddy Water Peregrine Quartz Reef Richmond Plains

Germany is the world’s largest market for organic still wine and has grown strongly since 2012. Organic wine accounted for 6% of still wine consumption in the country in 2017, with locally produced German wine representing approximately 52% of that volume.

Japan

*Information taken from the IWSR Organic Wine Report – for more information, visit www.theiwsr.com

Rippon Rockferry Schubert Seresin Söderberg Stonecroft Super-natural Wine Co Takamatua Valley Vineyards Terrace Edge

The Darling Tua Marina Vineyards Turanga Creek Two Paddocks Urlar Walnut Wines William Murdoch Wrights

For more information, visit www.organicwinenz.com

FMCG BUSINESS: THE SHOUT - MAY 2019

[ tasting notes ]

Discovering

fine wine

Cameron Douglas is New Zealand’s first and only Master Sommelier. An experienced wine writer, commentator, judge, reviewer, presenter and consultant, he is academically in charge of the Wine and Beverage Programme at AUT University in Auckland and is Patron of the New Zealand Sommeliers and Wine Professionals Association. Douglas consults to a variety of establishments, taking care of their wine lists, wine and food pairings, and staff training matters and he currently serves on the Board of Directors for the Court of Master Sommeliers Americas.

Wine tasting is a skill that can be learned and - like portrait painting or playing the violin - the more you practice, the better you will get. Wine tasting does, however, require a rather large number of samples and opportunity to taste and evaluate. Tasting classic wines from well-known appellations and many local examples, reference points, wine vocabulary and attending professional wine tasting events will help tasters become experienced and discover fine wine. Writing a tasting note for The Shout readers is different from writing a judging note for wine competitions. A tasting note for Shout readers should help them in several ways, including information to describe the wine to customers, helping the seller build upon their own wine vocabulary and create reference points to wine to assist in comparing wine styles and winemaking techniques. All without being too geeky. Tasting wine for judging in a competition takes a more focussed look at a wine’s finer points, balance, lengthy and complexity using experience from tasting classic wines as reference points, but not comparing necessarily to classic wines. Wine points, stickers or stars may or may not help one of your customers in their buying decision. If they do, it’s because the buyer, wine store, or reader has faith in the rating or writer and may be compelled to

SACRED HILL HELMSMAN GIMBLETT GRAVELS HAWKE’S BAY CABERNET SAUVIGNON, MERLOT, CABERNET FRANC 2016 Dark purple and ruby core with a ruby pink rim. Complex and beguiling bouquet with aromas of sweet blackberry fruits, olive and baked bell-pepper; violets and sweet wood. Calm yet persistent bouquet. Dry, firm and complex on the palate. Very youthful with firm tannins, high acidity and punchy fruit flavours with tobacco, wood and a sweet vegetal note. Very long finish, youthful and cellar time required. Best from 2024 through 2034. Points 97 RRP $84.99 Distributor: Quench Collective Limited Phone: (06) 879 8760 www.sacredhill.com

FMCG BUSINESS: THE SHOUT - MAY 2019

PYRAMID VALLEY LION’S TOOTH CHARDONNAY 2016 Complex and inviting bouquet with aromas of grapefruit, peach and apricot woven between aromas of vanilla and cashew, a limestone and clay mineral quality. Delicious on the palate with a saline feel, flavours of vanilla and other wood spices, apple and yellow stone fruits. Very fine wood tannins, natural acidity and long finish. Complex and intriguing, alluring and very tasty. drink now and through 2024. Points 96 RRP $125.00 Distributor: Great Little Vineyards Phone: (027) 788 9463 www.pyramidvalley.co.nz

buy the wine. Alternatively, wine notes and scores are an excellent way to market and advertise wine, especially when the wine is an excellent example. An excellent example of a particular wine is often referenced across popular press, wine critics, wine competitions or professional judging panels. These wines have specifically been recognised several times and is a great way to make buying decisions and ultimately become a fine wine candidate. Price at time of judging or assessment is irrelevant because the wine has to speak for itself and not because it sits in a specific price category. Some competitions do judge on price points, but most do not. The judging team is important as well and where there is a mix of winemaker, professional critic, wine buyer for specialist stores can be a formidable grouping. Wines reviewed in this month’s issue all have something special about them, but they all display a great balance, length and complexity. One of the easy judging criteria you can adopt today and use with every wine you taste, in addition to the ideas suggested above, is do you find this wine intriguing, beguiling, layered, thought provoking, different and even more exciting with each taste? If so then you may be enjoying a fine wine.

[ tasting notes ]

PASK GIMBLETT GRAVELS DECLARATION HAWKE’S BAY MERLOT 2013 A lovely bouquet, complex. Loaded with aromas of plums and spice, gravelly soils and French oak spice. Firm textures on the palate showing off the youth, focus and concentration. Flavours of dark berries and plums, toasty wood spices and steely, youthful and engaging core. Long finish, totally harmonious and exemplary. Drink well now and through 2026+. A real treat. Points 96 RRP $50.00 Distributor: Hancocks Wine, Spirit and Beer Merchants Phone: (06) 879 7906 www.pask.co.nz

PYRAMID VALLEY FIELD OF FIRE CHARDONNAY 2016 This is a delicious wine. From the initial bouquet of flowers and gun-flint to citrus and heirloom tree-fruit to an alluring complexity on the nose and palate together have a wonderful harmony with each other. A dry wine with a layer of oak spice and lees derived wild spice to tension and poise from the acidity and very fine silky tannins - this is a wine take your time over - slow down, pause, enjoy the weight and subtle power, flavours and finish. Not all Chardonnay are for everyone, this example will most certainly open your eyes and palate to a special place and time. Drink now and through 2024. Points 96 RRP $125.00 Distributor: Great Little Vineyards Phone: (027) 788 9463 www.pyramidvalley. co.nz

PEGASUS BAY PRIMA DONNA WAIPARA VALLEY PINOT NOIR 2015 An immediately alluring bouquet of ripe fruit and sweet oak, a core of minerality with crushed rock and limestone, even a little chalky note. Complex, fruity, oaky, gently savoury and dry on the palate. Flavours of dark red berries, sweet vanillin oak a mix of red flowers and earth flavours. Fine velvet textured tannins, supported by acidity a vibrato of textures; quite a lengthy complex finish. Enjoy this wine today and through 2026++. Points 96 RRP $95.00 Distributor: EuroVintage Phone: (03) 314 6869 www.pegasusbay.com

PYRAMID VALLEY ANGEL FLOWER PINOT NOIR 2016 Flowers, brown spices, earth and mineral moments, tea and pressed roses - the very nature of the bouquet is one of complexity and intrigue. On the palate complex, dry, savoury and earthy. Flavours do reflect the bouquet, texture are something different more savoury and intense with dried herb and fine tannins, a natural level of acidity and complexity. Long and intriguing finish. Well made, youthful and natural. Drink now and through 2026+ Points 95 RRP $125.00 Distributor: Great Little Vineyards Phone: (027) 788 9463 www.pyramidvalley. co.nz

PEGASUS BAY VIRTUOSO WAIPARA VALLEY CHARDONNAY 2016 Bold, complex and alluring bouquet with strong statements of oak, toasty wood spices , cashew and brazil nut, baked yellow stone fruits, burnt butter and heirloom grapefruit. Complex, youthful and rich. On the palate dry and packed with flavours suggested by the nose - grapefruit, yellow stone-fruits, nut and a whisper of banana. Full-bodies, lengthy and persistent finish. Youthful with plenty of acidity and some wood tannins. Lots to like with this example, decant for service with best drinking from today and through 2026. Points 95 RRP $60.00 Distributor: EuroVintage Phone: (03) 314 6869 www.pegasusbay.com

FMCG BUSINESS: THE SHOUT - MAY 2019

[ tasting notes ]

SACRED HILL DEERSTALKERS GIMBLETT GRAVELS HAWKE’S BAY SYRAH 2016 Very dark ruby and purple core with a ruby rim. Aromas of dark berries and pepper spices, vanilla and sweet clove. Additional aromas of blue fruits and a hint of new leather, baking spices and violets. Dry, nice core of fruit, lots of energy and texture on the palate with chalky tannins and plenty of acidity. Flavours reflect the nose. Complex, steely and haunting finish. A wine destined to age well. Best drinking 2022 through 2030. Points 95 RRP $59.99 Distributor: Quench Collective Limited Phone: (06) 879 8760 www.sacredhill.com

AUNSTSFIELD SOUTH OAKS BARREL FERMENTED MARLBOROUGH SAUVIGNON BLANC 2016 Complex and seductive bouquet of Sauvignon Blanc with aromas of crushed rock and mineral, floral notes and fresh ripe citrus and tree fruit with a slightly softer layer of herbaceousness then barrel ferment notes spice and nuttiness. The nuttiness and flavour of barrel shows more distinctiveness on the palate with vanilla and oak. Peach and citrus peel notes with some herb and sweet nutty oak to follow. Crisp, dry, weighty and complex with a lengthy finish. Drink now and through 2022. Points 95 RRP $38.95 Distributor: Auntsfield Phone: (03) 578 0622 www.auntsfield.co.nz

FMCG BUSINESS: THE SHOUT - MAY 2019

CHURTON MARLBOROUGH PETIT MANSENG 2016 Very specific and quite exotic with aromas and flavours of quince, baked pineapple and candied fruits. Delicious on the palate with an electric acidity, plush and exotic flavours, lengthy persistent finish. Drink now and through 2024. Points 95 RRP $49.00 Distributor: Churton Phone: (03) 572 4007 www.churton-wines. co.nz

NAUTILUS MARLBOROUGH SAUVIGNON BLANC 2018 Immediately complex and seductive bouquet of Sauvignon Blanc, weighty and rich in aromas of white fleshed tree fruits, some tropical notes, citrus and lees-spices. Textured on the palate with abundant acidity, spice and flavours that reflect the nose. Lengthy finish. Drink now and through 2022. Points 95 RRP $25.00 Distributor: Nautilus Estate Phone: (03) 572 6008 www.nautilusestate. com

PYRAMID VALLEY EARTH SMOKE PINOT NOIR 2016 There’s no mistaking this wine has a distinctive bouquet. It’s earthy, steely and haunting with aromas of soil, fresh and pressed flowers, tea and a compote of mixed red berry fruits. Dry on the palate with silty soil and fine tannin textures, balanced acidity and flavours reminiscent of the bouquet. A thinking man’s (okay person’s) Pinot Noir, with a lengthy and thought provoking finish. Drink now and through 2022. Points 94 RRP $125.00 Distributor: Great Little Vineyards Phone: (027) 788 9463 www.pyramidvalley. co.nz

[ tasting notes ]

SMITH & SHETH CRU OMAHU HAWKE’S BAY CANTERA 2016 This is a blended red wine from Hawke’s Bay fruit-led by Cabernet Sauvignon, Franc and Tempranillo. The nose shows off aromas of power and substance, with a youthful core of dark berries, spices, tobacco and smoky wood. On the palate - even more youthful with bold tannins and acidity, plenty of oak, spice, raspberry, dark berries, olive and violets. All the elements are there for a wine to age and integrate over the next few years. Lengthy dry finish, raw energy and muscle. Decant for service before 2022 with best drinking from 2022 through 2030. Points 94 RRP $60.00 Distributor: Great Little Vineyards Phone: (06) 650 5550 www.smithandsheth. com

PYRAMID VALLEY CENTRAL OTAGO PINOT NOIR 2017 Dark ruby core with plum and ruby highlights and a light pink hue at the rim. Aromas remind me of both the mineral soil attributes of Otago and the smashed strawberry fruits of Martinborough. On the palate however many of the hallmarks of a Central Pinot show with dark cherry, dried raspberry and savoury core with hints of wild thyme and minerals. Noticeable tannins and abundant acidity, a youthful wine with a core of vitality. Lengthy finish. Best enjoyed soon and through to 2024. Points 94 RRP $45.00 Distributor: Great Little Vineyards Phone: (027) 788 9463 www.pyramidvalley. co.nz

PYRAMID VALLEY MARLBOROUGH CHARDONNAY 2017 Varietal, fruity, familiar and fresh fruited bouquet. Aromas of wood before fruit, apple before spice, peach before flowers. Dry, weighty and full of fruit, wood and wild ferment flavours - flowers and flint, leesy spice and very fine tannins. Balanced, fresh, building complexity, loads of texture and well made. Drink now and through 2024. Points 93 RRP $40.00 Distributor: Great Little Vineyards Phone: (027) 788 9463 www.pyramidvalley. co.nz

PEGASUS BAY VERGENCE RED 2017 From 100% Pinot fruit with 100% whole bunch and 100% carbonic maceration technique this wine has an intense dark, ruby appearance with a bouquet of ripe, spicy, savoury, plush lifted fruit profile, a whisper of red bubble-gum and plenty of natural Pinot Noir aromas. On the palate - a dry wine, fruity and quite intense with flavours that reflect the nose plus toasty oak wood spices, medium+ acidity and core of fruit. delicious and fresh with a lower tannin structure, coarse silk texture and lengthy finish. drink now and through 2022. Points 93 RRP $40.00 Distributor: EuroVintage Phone: (03) 314 6869 www.pegasusbay.com

SMITH & SHETH HERETAUNGA GIMBLETT GRAVELS HAWKE’S BAY SYRAH 2017 Varietal and immediately enticing bouquet of sweet oak and pepper spice, toasty wood and dark berries with raspberry and black currant. Dry, toasty, fruity and spicy on the palate with dusty wood tannins, plenty of acidity, medium+ weight and intensity. The finish is finer with dark cherry and some floral moments. Youthful overall though drinkable today and through 2026. Points 93 RRP $60.00 Distributor: Great Little Vineyards Phone: (06) 650 5550 www.smithandsheth. com

FMCG BUSINESS: THE SHOUT - MAY 2019

HONEY, I’M HOME Beer writer John Oszajca explores mead - aka honey wine one of the oldest alcoholic beverages on earth.

John Oszajca john@newzealandbrewer.co.nz

THERE IS an age-old debate between beer and wine fans about which came first - beer, wine, or mead (honey wine). It seems that every few years, a new archaeological discovery bequeaths the trophy from one to the other, while pushing back the date when humans first began producing alcohol by thousands of years. While we may never know for certain which actually came first, there is no doubt that mead is one of the oldest alcoholic beverages on earth. As things currently stand, the oldest known production of mead dates back to 7000 BC, in northern China, where residue from a honey and rice-based fermented beverage has been found in ancient pottery vessels. In Europe, similar evidence of mead production has been found on ceramics that are approximately 4000 years old. It should, perhaps, come as no surprise that mead has such ancient origins. In its simplest form, mead is nothing more than honey, water, and yeast. Honey itself will not ferment unless the moisture content is above 19%. However, should a beehive fall victim to a rainstorm or flood (with the help of the wild yeast already present in most honey), Mother Nature herself can brew up a batch of basic mead. This divine beverage was no doubt discovered many thousands of years ago, by some fortunate Paleolithic forager, thus beginning an intoxicating relationship between mead and mankind; a relationship that has persisted throughout the ages.

FMCG BUSINESS: THE SHOUT - MAY 2019

Despite its ancient and Asian origins, it is perhaps the European Middle Ages that are most synonymous with mead. Mead was common across Medieval Scandinavia, Gaul, and Teutonic Europe, especially in the northern countries where grapes did not grow well. It is mentioned throughout many Norse legends and medieval tales, and romanticised in literature such as the Book of Taliesin, The Mabinogion, and Beowulf. In this tradition, we also find references to mead in more modern stories like the Lord of The Rings and Game of Thrones. To many, mead is perceived as the favourite drink of Vikings and Kings. For a beverage that has been so significantly intertwined with human history, it is surprising that it is so uncommon in our bottle shops. It’s especially surprising here in New Zealand, where we are so renowned for our honey. Ask a room full of people what they know about mead, and you’ll be surprised by how many have never even heard of it, and still fewer have had the opportunity to try it. When they have, more often than not, it’s been home-brewed, and is often of questionable quality – a fact that has not helped mead’s reputation. Despite the fact that mead is technically a wine, its popularity has risen on the back of the craft beer movement, particularly in the US and the UK, where it has been embraced by an increasing number of younger drinkers and craft beer fans. Mead has become one of the fastest growing segments of the alcohol industry in the US, and has seen approximately 10% annual growth in the UK. Unfortunately, Kiwi drinkers have not yet taken this same interest in the honey-based beverage. However, there are a few signs that change may be on the horizon. Historically, there have only been a handful of mead producers in New Zealand. And even

[ mead feature ] some of the largest of them (such as Traditional mead made with virtually every type of fruit one Bemrose Estate) are only producing a A traditional mead is made using nothing can imagine. This includes, but is in no way few thousand litres each year. However, other than honey, water, and yeast, limited to, strawberry, cherry, blueberry, the introduction of Session Mead though most mead makers will also add blackberry, pineapple, and even prickly pear (lower ABV and typically carbonated) nutrients to help with fermentation. cactus fruit. Just like a Metheglen, the key may just be the key to unlocking the Traditional mead truly showcases to a good Melomel is to find the perfect commercial potential of mead here the variety of honey used, and as balance between the best qualities of the in New Zealand. In 2017, Mac’s such flavours can vary dramatically. fruit and the natural flavours and essence of New Zealand released Love Buzz, Whereas the ‘vintage’ is the hallmark the honey. and soon after the independent of a good wine, the honey variety producer Lone Bee released a and terroir is the hallmark of a Session mead sparkling mead. Both meads were good mead. While a ‘Session Mead’ is technically session strength, and aimed at beer There are several sub styles just another name for a Hydromel, and cider drinkers rather than the within the traditional mead it’s worth mentioning it as its own wine market. While Love Buzz was category, the most significant of unique category because of how it has initially a special release, it has gone which, is based on the degree emerged in the market place, which back into production, signifying that of sweetness in the mead. is as an alternative to beer and the demand is there, and Lone Bee They can be categorized cider, rather than as a variation on Lone Bee has already surpassed the production as sweet, semi-sweet, and wine. Traditionally, most meads volume of some of New Zealand’s long dry. They are also categorised by are fairly high in alcohol, and are established Meadaries, in just a few alcoholic strength. A ‘Hydromel’ is very often sweet. Mead is meant short years. the least alcoholic of the sub-styles, to be sipped and enjoyed slowly. Only time will tell what the fate of New clocking in at under 7.5% ABV. A It could be argued that because of Zealand mead might be. But given the standard mead ranges between mead’s perceived sweetness (often reputation and unique characteristics of New 7.5% and 14% ABV, and a ‘Sack even when there is no residual Zealand honey, coupled with mead’s export Mead’ is anything above 14% ABV. sugar actually left), it tends to be potential, there is every reason to expect less popular as an accompaniment that mead might experience a similar boom Metheglen to a meal. This is perhaps part of Mac’s Love to the one that US and UK Mead producers Any mead that contains herbs or the reason that mead has struggled Buzz have seen in recent years. spices is called a Metheglen. These to make a splash in the wine market. may include spices such as cloves, However, by lowering mead’s ABV, Style nutmeg, cinnamon, meadowsweet, lavender, and adding carbonation to aid in balance For a drink that is traditionally made with just chamomile, or even hops, just to name a and ‘digestibility’ (to borrow a term from the honey, water, and yeast, mead is incredibly few. Coffee and chili meads also fall within Belgians), Mead becomes a beer alternative varied. Across the globe and throughout this category. The flavour impact of these rather than a sweet wine. The hope of the ages, mead has been made with the herbs and spices may range from subtle to many mead makers is that these changes addition of a huge array of ingredients. Its strong, but they should always remain in will open up the category, and increase alcoholic strength can range from low to balance with the honey and never stifle its awareness amongst a much wider, and more incredibly high, and mead’s finish can range character. Metheglen was the favourite brew receptive audience. from dry to sweet, or even bitter, depending of many a medieval mead maker. The challenge to making a good Session on the ingredients added. Let us take a look Mead is to produce a mead that is lower in at some of the different style categories of Melomel alcohol while still being complex. A Session mead, to better help you understand and A Melomel, is a mead that is made with Mead should express the qualities of the evaluate this under-appreciated, and often the addition of fruit. Melomels are a very honey varietal used, and avoid being flabby misunderstood, beverage. popular style of mead, and are commonly or thin due to the lower volume of honey used in the process.

FROM THE MEAD-MAKERS “In the States, a lot of the mead is made in a way that is kind of like a grape wine. Whereas here [in New Zealand] people don’t want something that imitates a normal wine. They want something that is sweeter; they want something that is distinctly fruity.” Mark Atkins, Bemrose Mead “I have a dream that one day we’ll have these meaderies in the middle of nowhere, and they are each producing honey and mead that may change from one year to another. However, it’s that authenticity of the honey and the area that could be really positive. And that’s where I think the potential of Mead in New Zealand is huge.” Oren Dalton, Lone Bee

Second only to grape wine, mead is a beverage whose quality is greatly based on the varietal, and terroir. As a country that produces some of the greatest honey in the world, there is no question that New Zealand should be known as one of the greatest mead producers in the world. While we have not earned that reputation yet, a few creative, and passionate artisans and entrepreneurs are making headway. Alas, it all comes down to the consumer. So by all means, dear reader, go out and try some mead. You won’t be sorry you did. FMCG BUSINESS: THE SHOUT - MAY 2019

FMCG MAY 2019

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