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NOV/DEC 2021 – Volume 8 – No 10
Low carb, full flavour!
PLUS! CELEBRATE SUMMER n SUPER SNACKS n HEALTH & WELLNESS n SUSTAINABILITY n NEW ZEALAND’S LARGEST FMCG AUDIENCE
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contents NOVEMBER/DECEMBER 2021
UP FRONT 6 EDITOR’S NOTE 8 INDUSTRY NEWS 11 COVER STORY Farrah’s new wraps – perfect for summer
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SPECIAL FEATURES 12 LET’S CELEBRATE SUMMER! Delicious new products for easy entertaining 20 SUPER SNACKS 34 HEALTH & WELLNESS Personal care category insights
REGULARS
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19 ARE YOU HOT AND FAST, OR LOW AND SLOW? Lew Bentley shares new BBQ trends 25 WHAT’S HOT New products in store 26 SUSTAINABILITY Towards a better future 27 PROFILE The Dole promise 29 Q&A Sea Cleaners on a mission to reduce marine waste 32 BEST IN SEASON Fresh produce update 33 PROFILE Protecting the planet pays off, says Jenny McMillan from Brother Design 37 FMCG BUSINESS PRODUCT OF THE YEAR This year’s winner is proudly made in NZ
GOOD BUSINESS 38 INDUSTRY NEWS AND INSIGHTS 39 EXPORT
FMCG BUSINESS - NOVEMBER/DECEMBER 2021
40 PRODUCT DESIGN 41 NEW BAKERY RANGE FROM MRS MAC’S 42 FGC The Commerce Commission Market Study 43 UPSKILLS 44 LEGAL ADVICE 45 CYBERSECURITY 46 NZ’S TOP CHEESE STORES
EVENTS 48 JOIN US AT THE FMCG BUSINESS MARKETING SUMMIT 50 WHAT’S ON Events for your diary 50 COMMITMENT TO SUSTAINABLE AGRICULTURE AT COP26 51 OUT & ABOUT Our people at work and events
CONVENIENCE & IMPULSE RETAILING 52 EDITOR’S NOTE 53 DAVID SINGER Industry stalwart retires after 30 years at Coalface Consulting 54 WELLNESS TONICS SHOJO secures New Zealand distribution partner 55 ICE CREAM New product development critical to the category 56 CIRCLE K More than 100 stores earmarked to open across the country 58 Z ENERGY Z Espress food and beverage sales boom despite lockdowns
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[ editorial ]
HERE’S TO A SAFE AND HEALTHY NEW YEAR! It’s been another interesting and challenging year, but I’m hopeful that 2021 will end on a positive note, with less restrictions and changes that will make business travel - and life in general – a little bit easier for us. A recent IRI report shows that we have transformed the way we live and the nature of our relationships with work, home, family, friends, and health as a result of the Covid pandemic. The ‘Self-Care Reimagined’ report explores the intensified awareness of wellness and how Kiwis are actively embracing a holistic approach to their health: 4 in 10 people say they like to try different approaches to health and wellness (technology, exercise, better diets); 1 in 4 are adopting a less meat centric approach to their diets; 56% prioritise making meals at home; 4 in 10 read ingredient labels; and 1 in 4 avoid foods with artificial ingredients and don’t keep junk food in the house. This issue brings you the latest trends in snacks, personal care, and summer entertaining, as well as interesting new sustainability initiatives. Did you follow the extensive discussions at the recent Commerce Commission Market Study? FGC CEO Katherine Rich shares her excellent summary on pg 42. We’ll find out in March if a new challenger has a chance to break into the $22bn grocery sector in New Zealand, where Countdown and Foodstuffs currently have about 80% market share. We hope you enjoy this special edition of FMCG Business and wish you and your families all the best for a safe and healthy new year. Our team is now taking a well-deserved break over Christmas, but please look out for our next issue in February, which will include our annual Leaders Forum with expert tips for the year ahead. Happy holidays,
Tamara Rubanowski trubanowski@intermedianz.co.nz www.fmcgbusiness.co.nz
PUBLISHED BY C&I Media (NZ) Ltd PO Box 109 342 Newmarket, Auckland 1149 MANAGING DIRECTOR Simon Grover COMMERCIAL DIRECTOR Safa de Valois safa@c-store.com.au EDITORIAL DIRECTOR James Wells james@intermedia.com.au HEAD OF CONTENT Tamara Rubanowski trubanowski@intermedianz.co.nz ph: 027 278 4761 MANAGING EDITOR – C&I NZ Deb Jackson d.jackson@c-store.com.au NATIONAL SALES MANAGER Vicky Bennett vbennett@intermedianz.co.nz ph: 021 626 115 ART DIRECTOR Leanne Hogbin leanne@intermedia.com.au PRODUCTION MANAGER Jacqui Cooper jacqui@intermedia.com.au DIGITAL AND PRINT COORDINATOR Eclypse Lee elee@intermedianz.co.nz
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ISSN 2382-1663 (print) ISSN 2624-4802 (online)
ON THE COVER Farrah’s new Low Carb Wraps are available in three flavours that are perfect for Summer: Original; Supergrains; and Plant-based Protein with hemp and pea protein. See the full story on pg 11.
FMCG BUSINESS IS PROUDLY ASSOCIATED WITH food& grocery COUNCIL NEW ZEALAND
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FMCG BUSINESS - NOVEMBER/DECEMBER 2021
FMCG Business is audited and verified by ABC. DISCLAIMER This publication is published by C&I Media (NZ) Ltd (the “Publisher”). Materials in this publication have been created by a variety of different entities and, to the extent permitted by law, the Publisher accepts no liability for materials created by others. All materials should be considered protected by New Zealand and international intellectual property laws. Unless you are authorised by law or the copyright owner to do so, you may not copy any of the materials. The mention of a product or service, person or company in this publication does not indicate the Publisher’s endorsement. The views expressed in this publication do not necessarily represent the opinion of the Publisher, its agents, company officers or employees. Any use of the information contained in this publication is at the sole risk of the person using that information. The user should make independent enquiries as to the accuracy of the information before relying on that information. All express or implied terms, conditions, warranties, statements, assurances and representations in relation to the Publisher, its publications and its services are expressly excluded. To the extent permitted by law, the Publisher will not be liable for any damages including special, exemplary, punitive or consequential damages (including but not limited to economic loss or loss of profit or revenue or loss of opportunity) or indirect loss or damage of any kind arising in contract, tort or otherwise, even if advised of the possibility of such loss of profits or damages. While we use our best endeavours to ensure accuracy of the materials we create, to the extent permitted by law, the Publisher excludes all liability for loss resulting from any inaccuracies or false or misleading statements that may appear in this publication. Copyright © 2021 - C&I Media (NZ) Ltd
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[ news ]
NESTLÉ APPOINTS NEW COUNTRY MANAGER IN NZ Jennifer Chappell has been appointed to the role of Nestlé New Zealand Country Manager. Jennifer has had a long and successful career with Nestlé New Zealand, starting as Marketing Manager in 2002, and most recently as General Manager of Nestlé Purina PetCare. As a proud New Zealander, Jennifer is particularly passionate about New Zealand and the success of the business in her native country. She says: “One of my real passions is attracting, developing and retaining talent – I’m passionate about making Nestlé New Zealand a great place to work and grow, an employer of choice.”
“ONE OF MY REAL PASSIONS IS ATTRACTING, DEVELOPING AND RETAINING TALENT”
Jennifer Chappell, Nestlé New Zealand Country Manager
FOR MORE INDUSTRY NEWS FOLLOW US ON
The Nestlé team announced the appointment recently, saying: “Jennifer’s exceptional leadership qualities and well-established relationships will ensure our continued business success in New Zealand and we look forward to her stewardship in the years ahead.”
CHECK OUT WWW.FMCGBUSINESS.CO.NZ
[ sponsored content ]
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FMCG BUSINESS - NOVEMBER/DECEMBER 2021
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[ news ]
COUNTDOWN REVEALS VACCINATION PROPOSAL In a move designed to further available to us to keep our team safe. protect the health and safety of its “As an essential service, team, Countdown has announced a supermarkets will be one of the very proposal to require all roles across the few places where proof of vaccination business to be fully vaccinated against will not be a requirement of entry COVID-19 by 10 January 2022. for the general public. That has the This proposal has come about as potential to pose a significant health New Zealand continues to respond to and safety risk to our team and, as an the more transmissible Delta variant of employer, we must reduce that risk as Countdown has announced a proposal to require the COVID-19 virus and would apply to much as we can. all staff to be fully vaccinated against COVID-19. all Countdown team, regardless of their “The medical science is unequivocal role or location of work. - being vaccinated significantly reduces the risk of people contracting Countdown’s Director of Health, Safety and Wellbeing, Kiri Hannifin says COVID-19 in the first place, from passing it on and from being the proposed requirement is seen as an important next step as the country hospitalised or becoming seriously ill from the virus. Our team members adapts to the evolving COVID-19 situation and alert level systems. are our whānau and we want to make their workplace as safe as we can.” “Since March last year, we’ve had a number of incredibly robust Countdown will undergo a consultation period with its team to health and safety measures in place across our business to help keep understand any concerns they may have regarding the proposal, to our team and our customers safe from COVID-19. However, with the gather feedback and to connect anyone who may be vaccine hesitant Delta variant in our communities and the move away from an elimination with independent health providers before making any final decision strategy, it’s clear to us that we need to look at the further measures about its proposed policy.
[ sponsored content ]
GENERATE MORE SALES WITH I LUV SLUSH With Summer here, now is a perfect time to cool down your customers with an ice-cold Slush! I Luv Slush are the leading supplier of quality “I Luv Slush” slush machines to the retail, club, pub, petrol, and convenience markets throughout New Zealand. If you want to generate more sales, or simply have more customers in your store, then an ‘I luv Slush’ solution is the perfect answer. Our systems help generate higher revenue and profit margins for our customers. The I Luv Slush machines are handbuilt in Italy, with quality European components and are of the highest commercial-grade quality. This provides reliability, peace of mind and marketleading chill down times that enable a higher volume of slush output, meaning more profit due to more servings. Our range covers machines with a 1, 2 or 3 bowl option and are all fast freeze models, ensuring your machine is up and producing ice-cold slushies faster than any competitor models. I Luv Slush owners also have the welcome peace of 10
FMCG BUSINESS - NOVEMBER/DECEMBER 2021
mind that should anything go wrong over the life of the machine, a Slush Service Technician is only a phone call away. Hundreds of locations around New Zealand are serving delicious I Luv Slush drinks from our huge range of flavour choices including Fun, Fruit, Kidsafe and No-Added Sugar. We also have flavours just for adults too, including margaritas and daiquiris in our ice-cold cocktail range, energising ice-o-tonic (an isotonic electrolyte style ice slush), and refreshing frappes. Slushie, slushy, slurpee, granita – whatever your customers call it, we call it slush and it’s great! If you’re looking to generate additional sales for your store, café, club, or venue, then an I Luv Slush system is the perfect solution. Our commercial slush machines are available for sale or lease to buy (a hire service is not available). Call 0800 324 111 or info@essentialcoffee.co.nz for more details.
[ cover story ]
FARRAH’S NEW WRAPS PERFECT FOR SUMMER!
Farrah’s new Low Carb Wraps were launched in late July. The range is available in three flavours that are perfect for Summer: Original; Supergrains; and Plant-Based Protein with hemp and pea protein. Plantbased food is a big trend, but the new range is also vegan friendly, halal certified, and yeast and dairy free. Glen Goodall, Sales Manager at Farrah’s explains: “From a consumer perspective the new wraps have been extremely well received and are the best performing NPD in Wraps and Tortillas (see IRI data below). We have seen substantial and continued growth. Supergrains has the best rate of sale with a high repurchase rate in ranged accounts.” Goodall adds: “Feedback from consumers has been very positive. They are looking for healthy products that are easy to prepare. Farrah’s wraps are versatile for breakfast, lunch, dinner, or as a snack. “Try a Breakfast Burrito with Farrah’s Supergrains wraps, use the Italian Herb flavoured wraps doublestacked as a pizza base with grated cheese in the middle, or use Snack Wraps for a mini pizza for the kids,” says Goodall. “We see a very high usage rate of Farrah’s Wraps in Summer, when people are moving towards healthier and lighter meals. Wraps are perfect for this time of the year and suitable for different outdoor occasions such as BBQs, picnics, and tramping. The Farrah’s Low Carb range is available at selected local supermarkets.
Made in NZ All of Farrah’s products are proudly made in New Zealand, at their world class factory in Silverstream, Wellington. Where possible, Farrah’s work with other NZ made products and suppliers.
Breakfast Burrito with Farrah’s Supergrains Wraps.
“ALL OF FARRAH’S PRODUCTS ARE PROUDLY MADE IN NEW ZEALAND”
Staying true to traditions Farrah’s bake each side of the wraps over an open flame oven, just like the Aztecs did in Mexico all those years ago. After cooling, the wraps undergo a series of strict quality checks to ensure your Farrah’s Wraps reach you in premium condition. For more information visit https://www.farrahs.co.nz/ For orders contact your Twin representative FMCG BUSINESS - NOVEMBER/DECEMBER 2021
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LET’S CELEBRATE SUMMER! New products for alfresco meals and easy entertaining. Warmer weather is finally here and that means it’s time to go outside, fire up the BBQ, or enjoy a picnic in your favourite spot. We found some exciting new products for tasty platters and relaxed meals.
Entertaining the idea The festive season is upon us, and entertaining is back on the menu across New Zealand. “Our consumers are getting inspiration from a variety of sources, but ultimately, they are looking for quick and easy products to add to their platters which deliver on taste and quality,” says Marketing Manager Brydon Heller. “Entertaining is where it’s at with the Continental Meat segment in growth, up 13.5% in unit growth versus a year ago1. Prepacked Chicken category is up 9.5% (Value MAT), with the Hellers Craft Chicken Range growing well ahead of category at 53.5%*. Hellers Craft Ham off the Bone is another Hellers success, contributing over $2million1 to the category in the last year.” Heller adds: “Our entertaining range is gluten free, easy to prepare, ready to eat and just what’s needed to have in the fridge for when unexpected guests turn up. We have consumers needs covered with traditional Salamis and Biersticks through to a variety of proteins, 12
FMCG BUSINESS - NOVEMBER/DECEMBER 2021
with ham off the bone or our chicken range, which will add to the perfect platter.” So, bring on the busy summer season with your shelves stocked with products to entertain and delight, including Hellers wide range of delicious products that are quick and versatile and ideal for entertaining. The products are all in market now, talk to your local Hellers Sales Manager for more information or contact us on 0800HELLERS (453 3377) * Source: IRI SCAN DATA TO 10 OCT 2021
Platter Perfection with Hellers
MADE IN NZ
GLUTEN FREE
MSG FREE
READY TO EAT
[ category insights ] New look for Waitoa
“FARMLAND FOODS STARTED IN A FAMILY BUTCHER SHOP IN 1964 BY THE DAVIS FAMILY AND NOW IS ONE OF NEW ZEALAND’S LEADING SMALLGOODS PRODUCERS.”
Waitoa is launching Garden Lemon and Herb Free Range Roast Chicken, and Karaage Chicken Bites just in time for summer. The entire Waitoa range will have a new look and will be Carbonzero certified. Ben Ward, National Business and Marketing Manager at Inghams says: “Chicken is the most popular protein in New Zealand and consumers are demanding more. “Fresh Free Range Chicken Kebabs sell 82% of the year’s sales over the summer. Butterfly chicken is becoming increasingly popular as a BBQ protein with a 41% uplift over the summer period vs autumn / winter (Nielsen 52 weeks to 12/09/2021).” According to the Colmar Brunton Futures Study 2020: • 49% of New Zealanders agree the need to change their diet to save the environment. • 48% have deliberately switched to a brand which is more sustainable. • 70% look for claims / labels for environmentally / animal friendly choices. • 67% will make eco-conscious choices, even if more expensive. Ward says: “Waitoa will be Carbonzero certified in November, just in time for the New Zealand summer. With a new look and great new flavours, Waitoa will be inspiring great tasting Kiwi BBQ meals. To drive chicken consumption, Waitoa will be investing heavily in TV, outdoor and Radio, digital, social and sponsored content, and recipe inspiration over November and December.” Orders can be placed with your Territory Manager or Waitoa Customer Service on 0800 800 785.
From humble beginnings… Farmland Foods started in a family butcher shop in 1964 by the Davis family and now is one of New Zealand’s leading smallgoods producers. Still passionately family run in Bulls in the Rangitikei district, Farmland Foods employs over 150 local staff and has always been committed to quality and Farmland Foods' sites
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innovation. They are proud of their heritage and the way they do things with the utmost care and attention, taking great pride in selecting the best quality meats and preparing them ready for your enjoyment. With 57 years’ experience and now the fourth generation working in the business we felt it was time for a refresh of our branding, says Brand Manager Steven Young. “After months of hard work involving the clever folk at Onfire Design Ltd, as well as our internal marketing team, we are finally able and immensely proud to reveal our bold new look. “We’ve retained a few hints and nods to our old logo and farm in Bulls on the watermark seal, and because we are so incredibly proud to be one of the few New Zealand family-owned businesses in our industry, our founder Mr Allan Davis wrote it in gold for all to see. The blue background is also a nod to the butchers’ aprons of old, worn back in the day in the family butcher shop on Broadway Ave in Palmerston North.” Davis says: “our aim is to bring family together through our passion for food. We truly believe that we can make a difference to people’s everyday lives. “Everything we do is about providing a means for family to come together, to show your family you care, whether it is coming together for that special occasion breakfast, lunch or dinner. “Increased demand for Farmland products has resulted in the company experiencing steady growth for several years. Farmland Foods have recently purchased a new facility in Whanganui. Managing Director Eddie Davis, says the purchase of the Whanganui facility is a natural progression for Farmlands. “The addition of another site will add the capacity we need for growth and will future proof our current business and operations supplying smallgoods, bacon and ham to supermarkets nationwide.” The directors and their families have all resided in Whanganui since 1994 and are committed to
sales@flf.nz
www.farmlandfoods.nz
[ category insights ] supporting local manufacturing and create more jobs in the region. “So, from our family to yours, here’s to another 57 years!”
Let’s get this party started!
“THE NEW SUPER SAUSIES ARE THE ONLY VEGAN CERTIFIED AND GLUTEN FREE CERTIFIED SAUSAGES ON THE MARKET”
Get ready for a smokin’ hot summer where plantpowered goodness is the main attraction on BBQ’s and at fiestas across the country. Launched in time for summer, the new sauces from Food Nation add colour and taste to this high growth category with unique new variants, packed with flavour and designed to suit all meal occasions. Introducing: • The one and only Herbivore is a fresh herby aioli, featuring a creamy aioli blended with herbs including NZ kawakawa, mint & coriander.
• There’s the new Holy Moly Chipotle Aioli. Good day or night, this may be your favourite chipotle ever. • Lets all enjoy some BBQ action with the new Fired Up homestyle spiced tomato sauce finishing off a trio for all occasions. The range features the stand-out Food Nation design, in fully recyclable packaging that is easily portable and looks stunning in the chiller, highlighting the category. Food Nation plant-powered sauces have been crafted to suit all dietary persuasions and to perfectly complement the Food Nation range, including these two newly launched skus. • The Super Sausies are the first sausage in the range. Packed with fresh mushrooms and locally grown grains, they’re the only vegan certified and
[ sponsored content ]
DELMAINE DRIVES GROWTH “In May of this year the team at Delmaine undertook the biggest renovation of our pasta and sauce products since we started selling them 30 years ago,” says Marketing Manager Micheal Bennett. “From investing over a million dollars in manufacturing and packing machinery, to a complete overhaul of flavours and pasta types, through a full packaging facelift this was possibly the biggest single investment in chilled pasta and sauce ever seen in New Zealand. “In addition, over $100k was invested in the Delegate Dinner to Delmaine campaign, including media activity in social media and digital channels, print media and outdoor advertising. The reach of this campaign was extensive with our series of videos viewed over 1.3million times alone. “Our investment has continued in October and November with our Pasta Month campaign currently featuring across multiple social channels. Halfway through the Pasta Month campaign we have already seen over a million impressions and have had record numbers of responses to our competitions and other interactive posts. This campaign has been so successful we will be investing in it as an annual event. “The response from consumers to reformulation and rebrand work, and our communications campaigns has been a huge success. Feedback and sentiment have been overwhelmingly positive and sales results have reflected this.” 16
FMCG BUSINESS - NOVEMBER/DECEMBER 2021
Bennett adds: “Delmaine Fresh Pasta sales have grown year on year (+16.6%) and are driving growth in the total category, whilst the Pasta Sauce numbers have been even more spectacular (Delmaine Fresh Pasta Sauce sales +50.5%)*. “The future is looking bright for Delmaine Fresh Pasta and Sauce and we look forward to sharing that future with our customers.” *IRI Qtr to 19/09/21 vs same Qtr YA
Kiwi Favourites, now in convenient take home packs
Northland, Auckland & Waikato ANDREW PARK | +64 21 533 355 | andrew@diversityfoods.co.nz Central & Lower North Island ROGER PICKERING | +64 27 594 2248 | roger@diversityfoods.co.nz Diversity Foods Ltd | PO Box 97620, Manukau City, Auckland 2241 3 Diversey Lane, Wiri, Auckland 2025 Phone: 0800 462 244 | Fax: 09 577 5661 Email: info@diversityfoods.co.nz | Website: www.diversityfoods.co.nz
[ category insights ] gluten free certified sausage on the market and will definitely be a hit on BBQs this summer. • The new Vietnamese Pea & Kaffir Lime Amaze Balls hit just the right note for a nation with a love of Asian flavours and are ideal for Source: NielsenIQ Total Supermarkets - MAT to 10/10/2021 summer. Val $ Sales Val % Chg YA With over FROZEN MEAT, VEGETARIAN & 79,777 2.3% a third of NZ SAUSAGE ROLLS consumers FROZEN MEAT 40,643 5.0% actively looking FROZEN SAUSAGE ROLLS & SAVOURIES 25,017 1.7% to eat more plants, make FROZEN VEGETARIAN 14,116 -3.5% the most of PREPACKAGED SMALLGOODS 527,947,851 1.0% this globally PREPACK. BACON 196,499,275 -2.6% exploding PREPACK. SAUSAGES/SAUSAGE MEAT 155,740,509 5.2% category as the CONTINENTAL MEATS 79,451,821 3.6% BBQs start to PREPACK. HAM 54,359,817 2.5% heat up and the PREPACKED OTHER COLD MEATS 36,532,778 -3.5% festive season gets into full swing.
For sales enquiries contact buds@foodnation.co.nz www.foodnation.co.nz
Sweet treats for summer Maria Antunovich, Product Manager at Foodstuffs Own Brands suggests: “Whether you’re hitting the beach, bach, staying home or heading to the park for a socially distanced picnic, Pams have got a great range of ice cream and desserts to keep customers cool this summer! Pams new, limited-edition, Salted Caramel Fudge Ice cream will be available for a short time over summer at New World, PAK’nSAVE and Four Square stores. They are also introducing a range of classic 2L family tubs of New Zealand made Ice Cream, which come in five fantastic flavours including: Strawberry Ripple, Chocolate, Vanilla, Boysenberry and Hokey Pokey, and a 1L indulgent ice-cream range which includes Kiwi favourites: Rocky Road, Vanilla Bean, and Cookies and Cream. All of our Pams products are free from artificial colours or flavours.”
FMCG Business produces a monthly snapshot of category news and highlights, based on information from participating clients and Nielsen data available at time of print. To showcase your products in upcoming category reports, please contact trubanowski@intermedianz.co.nz.
LET PL ANTS TAKE C E NTR E STAG E TH I S S U M M E R
MAD E I N N Z W ITH LOVE
Jam-packed with fresh NZ ingredients and bursting with flavour, Food Nation is an award winning range loved by flexitarians, vegans and vegetarians alike. Liven up your chiller and get a piece of the plant-powered action this year with their tasty new Sauces and Super Sausies.
NEW! LAUNCHING OCTOBER
200g 180g
200g
MADE FROM PLANTS
MADE FROM PLANTS
FO R SA LE S C O NTAC T: B U D S @ FO O D N ATI O N .C O. N Z
FIRED UP
Spiced Tomato Sauce
200g
H E R B I VO R E Herby Aioli
MADE FROM PLANTS
H O LY M O LY Chipotle Aioli
[ trends ]
ARE YOU HOT AND FAST, OR LOW AND SLOW? Some things never change and some things are always changing; such is life. Men have found familiar comfort from standing around meat cooking over fire, beer in hand, talking banter since time began. While cooking in the kitchen is somewhat polarising from a gender perspective, the barbecue seems to be a predominantly male domain, no matter how skilled he may or may not be. There are ancient cave paintings in southern France that clearly support this. This primitive pleasure is undergoing a radical transformation. A mere generation ago the standard setting was fast and hot sausages and steaks rolling off gas burners to go with the salads and corn. But the millennials are today’s agents of change. It is out with dad’s fast and hot gas barbecue and in with low and slow. The barbecue du jour is designed to nurture special cuts of meat to glorious heights of tenderness and deliciousness. Here is what a group of five of this emerging species of male millennial barbecuers had to say.
What do you talk about when you’re barbecuing?
What is different about barbecuing these days?
How well are the supermarkets delivering on the new age of barbecuing?
It is a low and slow style that comes from the USA, especially Texas. There is also a similar braai style that has reached our shores from South Africa.
The team consensus was that our supermarkets generally have a good range of barbecue rubs and sauces like Sweet Baby Ray’s, or Glasseye. But the message was clear that supermarkets pale in comparison to good butcher shops when it comes to quality meat. The Aussie Butcher, the Village Butcher, and Pinehill Butchery were all mentioned in despatches as understanding the needs of contemporary barbecue standards and sharing a passion for quality. If your childhood memories were of burnt sausages and bad steak, there is definitely hope for the future with today’s barbecues becoming a thing of beauty. It might just take a bit longer to prepare.
How has it become a such a phenomenon? It has become a common subject of conversation that ticks a lot of the boxes that many men love: fire, equipment, skills, and competitiveness. It is something that justifies standing around for a long time drinking and being able to wow people with meat. This has been amplified by a steady diet of barbecue education via YouTube videos, American barbecue TV, social media and even support groups like the New Zealand Barbecue Alliance.
What do you actually cook? There are still the old favourites like sausages and steak. But the new benchmarks are being set with ribs (of all kinds) and the ultimate challenge is brisket where we are looking at 10-12 hours of loving care and no guarantee of success.
What does it take to be great at barbecuing? It is simply a matter of technique, dedication and patience. And equipment.
Barbecuing is a sacred environment for male discourse, and modern barbecuing extends this opportunity over a long period. On one hand there is a heavy dose of banter, but the important stuff is to get to the bottom of barbecue expertise. Ultimate menus are considered, rubs and sauces are debated, the best sources and cuts of meat are weighed up. Equipment is a wonderful blend of one-upmanship, ridicule and coveted passion all rolled into one. And of course technique carries an endless pursuit of tips and tricks. The ultimate fantasy road-trip would be within the golden triangle of the Carolinas, St Louis and Texas.
Lew Bentley, Head of Strategy at Shopper Marketing Agency Energi. lew.bentley@energi.co.nz
What sort of equipment are you running? Most had multiple barbecues they used with clear roles allocated for each. In general, gas is out and charcoal, pellet burners and smokers are in. Most had invested into the thousands and the brands commanding respect were Pit Boss, Traeger, Weber, Octopit, Big Green Egg, and Broil King.
FMCG BUSINESS - NOVEMBER/DECEMBER 2021
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SUPER
SNACKS From multigrain chips to Snackaballs with less sugar and popcorn innovations, here’s a quick snapshot of new products and trends.
Microwave popcorn reinvented! A true game changer in the microwave popcorn category has just launched in 2021. The Naked Kernel is proudly 100% NZ made and features clean labelling with no artificial colours or flavours! Founders Trent Brock and Michael Howe are well versed in everything popcorn with over 10 years’ experience since first launching New Zealand Kettle Korn, a premium, small batch, kettle popped popcorn. They hope to lead the change in providing a healthier alternative for microwave popcorn. The Naked Kernel has launched a first of its kind microwave popcorn, with their proprietary no chemical, Natural Pop bag. The Natural Pop bag is chemical free, no plastics and no metalized susceptor. Brock says: “While popcorn is often regarded as a relatively healthy and delicious snack, it is the chemically coated microwave bags in which the popcorn pops that many experts say could be a problem. Research has linked the coatings to numerous health issues. “I think many consumers were unaware of the potential health issues associated with microwave popcorn, not to mention the issues with hydrogenated oil and all of the artificial colours and flavours often found in other brands.” The company has reinvented the entire approach to microwave popcorn. The customer pops the Natural Pop bag in the microwave and then adds the butter and flavour sachets after the bag has fully popped. “This allows us to use real butter, premium oils and real flavours as opposed to artificial options,” says Brock. The Naked Kernel (RRP $5) is available in three flavours: Butter/Sea Salt, Maple, Sea Salt. Contact your KML Representative for ranging. www.TheNakedKernel.co.nz 20
FMCG BUSINESS - NOVEMBER/DECEMBER 2021
New range of Tom & Luke Snackaballs Tom & Luke have created a new range of Snackaballs with a completely new lower sugar recipe that delivers a lighter texture. The epic new Tom & Luke Snackaballs™ are made from a handful of natural ingredients with 50% less sugar*. Rachel Morrison, Head of Marketing explains: “We know everyone has a unique, personal view of health and wellness so we’re thrilled we have an increasing range of options for consumers to choose from. All Tom & Luke products are crafted from carefully chosen ingredients. We choose only a few, amazing ingredients for each product to deliver wholesome, great tasting snacks.” Deliciously soft and packed with flavour, there are three to choose from: Maple & Almond, Berry Buckwheat and Apple & Chia. • Vegan • Gluten Free • Non-GMO • Made in New Zealand Launching in all leading supermarkets nationwide. www.tomandluke.com * 50% less sugar than the average sugar content in the Tom & Luke Snackaball™ Original’s products
Nobby’s arrives in NZ: Grab a bag of flavour! An Australian favourite for over 70 years has launched in New Zealand. Nobby’s use only the best quality ingredients to deliver a delicious snack that provide a source of protein with a 4.5 Health Star rating. They come in two pack sizes (medium bags 150g/170g) and large bags
Reinventing Microwave Popcorn!
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[ category insights ] (350/375g) in four flavours - Peri Peri, Chilli & Lime, Smokey BBQ and Salted. The Nobby’s range also includes Jerky, Bacon Bites and Pork Crackle. Order yours today from Bluebird Foods. If you are a new customer, you can call us on 0800 652 583.
Sunbites: snacks you can feel good about! Sunbites Grain Waves multigrain chips are now available in a new sharing 140g pack size, offering shoppers better value for money. Patricia da Silva, Marketing Manager at Bluebird Foods explains: “We’ve also added a new Caramelised Onion & Balsamic flavour to broaden the appeal of the range to people looking for ‘better for you’ snack alternatives.” Sunbites Grain Waves are snacks you can feel good about eating because they: • Are made from more than 65% wholegrain • Have 30% less fat than regular potato chips* compared to Bluebird Originals potato chips • Are made with natural colours & flavours • Have at least a 3.5 Health Star rating • Are proudly made in New Zealand. Look out for the eye-catching advertising on both digital and social platforms, communicating the goodness of wholegrains and great taste. Order yours today from Bluebird Foods. If you are a new customer, you can call us on 0800 652 583.
“SUNBITES SNACK CRACKERS WITH QUINOA ARE HIGH IN WHOLEGRAINS”
Sunbites: snacks you can feel good about! Sunbites Snack Crackers with Quinoa are high in wholegrains and are the perfect snack to dip, top or munch! Patricia da Silva, Marketing Manager at Bluebird Foods explains: “We make these bite sized crunchy wholegrain snacks by taking the goodness of wholegrain corn, wheat and oats then add quinoa. We cook them until they're deliciously crispy and then we sprinkle them with our scrumptious
seasonings. Available in Sea Salt, Cheddar & Chives and Caramelised Onion & Balsamic flavours” And more good news - our Sunbites Snack Crackers are: • high in wholegrain • made with quinoa • made with no artificial colours, flavours or preservatives • at least 3.5 Health Star rating Order yours today from Bluebird Foods. If you are a new customer, you can call us on 0800 652 583.
Pop n Good Pop n Good Popcorn is air popped, gluten free and grown right here in New Zealand. Its’ popping good! “Pop n Good is the number one popcorn brand in NZ and has 31.6% share of the total popcorn market and is growing faster than the market, at 11.3% versus the total popcorn market at 4%*,” says Susan Harvey, Marketing and Business Development Manager. Pop n Good offers popped corn as well as popping corn in its range. With such a wide variety of flavours and product formats there is a Pop n Good product for everyone. It’s no surprise that popcorn has been a hit over lockdowns – whether that’s ready popped popcorn or popping corn for movie entertainment, for snacking or popping corn for a baking activity. Popcorn is the perfect guilt free snack that everyone enjoys and its wholegrain, is high in dietary fibre and low in calories as well as tasting delicious. Harvey adds: “As at home popcorn consumption usually occurs while watching movies, to delight our customers we developed a Pop n Good song playlist. The playlist features well known songs from hit movies. To access the playlist customers either purchase specially marked packs and scan the code on the pack or access through our Facebook page. If you would like to listen, simply follow the on-pack sticker instructions, or follow us on Facebook. We have had great feedback from our customers that they loved the free playlist and it has been wonderful to run a consumer promotion that’s aligned with key eating occasion of watching movies. “We have also supported the brand nationwide with the More FM Pop Quiz and sponsored Pop n Good Popcorn break on connected TVs. Pop n Good is such a feel-good brand and is proud to be New Zealand made and to be supporting the popcorn category,” says Harvey. * IRI dollar share of total popcorn MAT to 22/8/21. MAT dollar growth Pop N Good and total popcorn versus YAGO to 22/8/21
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FMCG BUSINESS - NOVEMBER/DECEMBER 2021
[ category insights ] Proper Crisps Snacking on a Proper Crisp is an occasion in itself. While eating Proper is all about fun, making them is a very serious business with customer experience sitting at the heart of the company, founded in Nelson 13 years ago. Although, there is still plenty of fun to be had at Proper HQ - creating new flavours in their Seasoning room with their Flavourlogist and chefs, taste-testing and crafting new flavour recipes (sometimes 58 versions!) and chatting to crisp lovers daily. Commitment to delivering the best crisp to their eaters is about being all in. Having turned the potato snack into a multiaward-winning crisp, Proper launched a premium offering in Corn Chips, home compostable packaging, and most recently a Proper Crackerbread, new to Countdown shelves this month. Duncan Kerr, Commercial Manager Proper Crisps, says: “Known for its texture, taste and quality, Proper’s Proper ingredients, made properly featuring gluten-free and plant-based, have been their philosophy from the start and are trends leading the food industry globally. This month, new to the chip aisle, Proper has launched vegan Barbeque Rub Crisps, a first for the category, combining smokey, saucy and tangy flavours. One BBQ expert goes as far to say it is the best BBQ crisp ever.” Re-teaming up with their Wellington craft beer mates, Garage Project, has seen them create the perfect pairing of a thick-cut, finely salted crisp to pair with a very modern crisp IPA featuring Proper potatoes and Nelson hops. While Proper are made following an honest food approach and featuring Source: NielsenIQ Total Supermarkets - MAT to 10/10/21 a “healthier” health star rating, crisps are an Val $ Sales Val % Chg YA occasion. So it’s Proper’s TOTAL SNACKFOODS 573,741,802 5.7% job now to ensure Kiwis NUTS 125,800,846 2.6% are eating fewer chips PREMIUM PC 106,452,470 18.4% and switching to crisps.
“NEW TO THE CHIP AISLE, PROPER HAS LAUNCHED VEGAN BARBEQUE RUB CRISPS, A FIRST FOR THE CATEGORY”
MAINSTREAM PC
95,010,077
-2.9%
MULTIPACKS
74,573,540
1.1%
CORN CHIPS
58,950,058
-0.6%
EXTRUSIONS
28,025,998
5.5%
VEGE CHIPS
19,441,749
75.5%
MEAT SNACKS
15,373,875
10.9%
POPCORN READY TO EAT
13,849,860
5.0%
BREAD SNACKS
10,218,032
-3.0%
ETHNIC SNACKS
9,364,360
-2.2%
POPCORN MAKE AT HOME
9,163,064
10.9%
CEREAL SNACKS
4,947,767
15.1%
OTHER SNACKS
2,570,105
34.5%
Mother Earth driving innovation in snacking New Zealand owned and operated, Mother Earth provide nutritious, delicious snacks to keep Kiwis going every day, with many products being family favourites. From better-for-you muesli bars to quality snacking nuts, Mother
Earth continues to drive innovation in snacking. Globally, the pandemic has put health and wellness at the forefront of our minds. Consumers are looking to brands to offer products that help extend the wellness concept in their day to day lives. Introducing Mother Earth Wellbeing Bars – a delicious range of baked oat bars that support holistic wellbeing. Wellbeing Bars provide important micronutrients to support everyday wellbeing by combining the goodness of oats, seeds, nuts and grains with delicious fruit and decadent chocolate. Each Wellbeing Bar contains a nutritional benefit derived from natural sources – Fibre, Iron or Magnesium.* Available in three delicious flavours, they’re the perfect snack -whether it’s a 3pm craving, pre-gym bite, road trip snack or lunchbox delight, there’s a bar for every occasion. Innovation in sustainability is a key focus for Mother Earth. The build-up of plastic in the environment, not enough waste being recycled and over packaging/ non-recyclable packaging continue to be in the top 10 concerns for New Zealanders.** Mother Earth continues its sustainability journey by reducing non-renewable plastic usage. From November, Mother Earth is rolling out a 20% reduction in plastic packaging used across their entire snack nuts product range. This will equate to reducing the amount of plastic used by 9 tonnes per year, or over 74km of a typical drink bottle laid end-to-end. Mother Earth is proud to lead the way as the first nut brand to begin a visible sustainability initiative in the Snack Nuts Category – that’s what we call ‘sustainable snacking’. For more information contact your Prolife Foods Account Manager on 0800 80 80 88 or visit www.motherearth.co.nz *For full nutritional information please visit motherearth.co.nz/our-products/ bars/wellbeing-bars **Colmar Brunton Better Futures 2021
FMCG Business produces a monthly snapshot of category news and highlights, based on information from participating clients and Nielsen data available at time of print. To showcase your products in upcoming category reports, please contact trubanowski@intermedianz.co.nz. 24
FMCG BUSINESS - NOVEMBER/DECEMBER 2021
New Pita Bread Innovation from Giannis Giannis are bringing innovation to the specialty bread category with the new Giannis Premium Sourdough Pita Bread and Giannis Flatbreads just in time for a sizzling Kiwi summer! Giannis are excited to bring this new innovative into the pita bread category to stoke up some growth in this mature segment of the market. www.giannis.co.nz
Waitoa new look and new flavours! Waitoa has a new look and new flavours in time for summer. Garden Lemon and Herb Fresh Family Roast Chicken providing flavour that appeals to all the family. Spinach and Cheese Chicken Kiev and Karaage Chicken Bites bringing inspiration for flavourful family meals. Supported by a significant marketing campaign across summer. Orders can be placed with your Territory Manager or Customer Service on 0800 800 785. www.waitoafreerange.co.nz @waitoafreerangechicken @waitoachicken
Discover the Benefits of Açaí More than just a purple berry, Açaí (pronounced AH-SIGH-EE) is thought to be the most powerful food in the Amazon. Sambazon’s Certified Organic and Fair Trade Açaí is sustainably hand harvested, meaning you can feel good knowing you’re helping the Amazon and its people while nourishing your body. To learn more about Sambazon Açaí and receive a free sample, visit Sambazon NZ's agent's website www.markwellfoods.co.nz or contact us at marketing@markwellfoods. co.nz or 09 270 3311.
Perfect Pantry Staple for Summer
Delicious Probiotic Protein Bars from Chantal Organics Chantal Organics Probiotic Protein Bars are powered by 10g of organic plant-based protein, boosted by more than one billion beneficial probiotic bacteria and charged with real-food ingredients. Made right here in NZ, they’re a delicious, better-for-you snack with less than 8g of sugar per 45g bar. For sales enquiries please contact orders@chantal.co.nz or call 0800 254 766
The next best thing after real mangoes, Kashish Mango Pulp! A thick puree made from the most tropical, sweetest and juiciest mangoes from Asia. It’s simple – open the lid of the can and mix a few teaspoons of the Mango Puree into your smoothies, drinks, iceblocks, cakes, toppings or any dessert! Contact our team on 0226120575, email kg@kashishfood.co.nz or visit our website www.kashishfood.co.nz FMCG BUSINESS - NOVEMBER/DECEMBER 2021
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[ sustainability ]
TOWARDS A
BETTER FUTURE A circular economy is based on the principles of designing out waste and pollution, keeping products and materials in use, and regenerating natural systems. The past 80 years have been dominated by a ‘take-make-waste’ linear economy, which is taking a massive toll on the environment. Despite some promising signs of change, New Zealand is transitioning too slowly to a low carbon circular economy, according to a ‘state of the nation’ report released by the Sustainable Business Network (SBN). The slow transition means we’re losing out economically. A 2018 study led by SBN showed Auckland could be $8.8 billion better off in 2030 if it shifted to a circular economy. It would also have much lower carbon emissions. The “Going Full Circle” report assesses the state of the circular economy in New Zealand in 2021. Lead author James Griffin, General Manager Projects & Advisory at the Sustainable Business Network, says: “The state of the climate, resource depletion and degradation of nature require immediate action. Businesses need to move beyond an incremental focus on recycling to much more progressive strategies to meet these challenges. “There are a raft of benefits for companies that incorporate more ‘circular’ practices, including business opportunities, staff retention, greater market share and enhanced brand. A growing number of people are already choosing products and services that won’t add to our waste problem. If businesses don’t start to adjust now they are putting off the inevitable.” In response to the findings, SBN launched the Go Circular 2025 programme in partnership with New Zealand Trade and Enterprise, Ministry for the Environment, Waste Management and Āmiomio Aotearoa. 26
FMCG BUSINESS - NOVEMBER/DECEMBER 2021
The programme will provide practical tools and resources to help Kiwi businesses thrive in a low carbon circular economy. A key focus will be the creation of Aotearoa New Zealand’s first circular economy directory. It will feature businesses that offer circular economy-based products and services, as well as case studies. The programme will build on the signs of progress shown in the ‘Going Full Circle’ report. They include work to improve packaging; growing consumer demand for products that won’t end up in landfill; more sustainable procurement policies; and new legislation such as a ban on single-use plastic bags. Read the Executive Summary of ‘‘Going Full Circle: six focus areas for shifting New Zealand to a low carbon circular economy” here: https://sustainable.org.nz/wp-content/uploads/2021/09/Going-FullCircle-Executive-Summary-SBN.pdf Source: www.sustainable.org.nz
Celebrating local achievements The finalists in the 2021 Sustainable Business Awards have been named and the winners will be revealed on 25th November. The Awards celebrate the sustainability achievements of New Zealand’s leading organisations and individuals. The finalists include Chia Sisters, Fonterra, Glass Bottle Milk & Lewis Road Creamery, Happy Cow Milk, The Better Packaging Co and Fair Food New Zealand. Finalists in the Outstanding Collaboration category include the New Zealand Food Network and Foodstuffs North Island & Wellington City Mission. Continued on pg 28 >
[ profile ]
THE
DOLE PROMISE Last year Dole New Zealand announced ‘The Dole Promise’; a global company initiative that aims to increase access to sustainable nutrition, and decrease food waste, packaging waste and carbon emissions for the benefit of its stakeholders, employees, customers, and the planet. The Dole Promise will see Dole Packaged Foods and Dole Asia Fresh strive toward achieving the following goals.
Better for People • Access to sustainable nutrition for 1 billion people by 2025 • Moving towards zero processed sugar in all Dole products by 2025
Better for the Planet • Moving towards zero fruit loss from Dole farms to markets by 2025 • Moving towards zero fossil-based plastic packaging by 2025 • Aiming for net zero carbon emissions in Dole operations by 2030
Better for all Stakeholders • Dole will continue to positively impact all farmers, communities and people working for Dole – through its commitment to equal opportunity, living wages, and an ever-increasing level of safety, nutrition, and wellbeing. The company also seeks to advance human rights within the direct operations and supply chains by building a culture of transparency and accountability. The company also aims for a 50% increase in the value of its business by 2025. Dole General Manager Steve Barton says that The Dole Promise reflects the company’s commitment to change that helps people and the planet, particularly considering the challenges of the current climate: “265 million additional people could be pushed to the brink of starvation as a result of COVID-19,” says Barton. “Business as usual simply won’t cut it in the face of a looming food crisis, not to mention the ongoing issues of climate change, resource waste and declining natural resources. There’s no doubt it’s time for change, and naturally the first place for us to start is within our own business.” The promise draws on the spirit of ‘Sampo Yoshi,’ an 18th century Japanese philosophy that views the wellbeing of society and business
as interdependent, and ensures the business is beneficial to the seller, buyer, and community. “The triple-win Sampo Yoshi is a centuries-old concept, the longevity of which proves its success. This concept will be at the heart of our promises to make change that benefits Dole’s stakeholders, employees, customers and the planet for the future,” says Barton. “We’re working towards a more equitable and sustainable future – it’s our responsibility as the people of today to provide a better planet for the generations of the future. Our younger generations are increasingly aware of the importance of looking after people and the planet, and we need to undo the damage we’ve generated over past years.” In New Zealand, Dole is working towards achieving the Dole Promise with several local initiatives, including a partnership with OKE Charity, which provides South Auckland primary schools with sustainable fruit and vegetable gardens for children and their communities. A sponsorship of the Motutapu Restoration Trust, an ecological restoration project to rebuild the natural and cultural landscapes of Motutapu Island, sees funding going toward a Kiwi release programme and habitat development for species like the Coromandel brown Kiwi, Takahe, and Tieke (saddleback). An ongoing partnership with The Salvation Army, will see over 48,000 bananas donated to food centres nationwide during the year. Dole also partners with Love Soup Food Rescue, which donates yearly over 3600 bananas to Auckland residents in need. Dole also has a longstanding partnership with the Rainforest Alliance, a non-profit organisation that aligns farmers, forest communities, companies, and consumers committed to creating a world where people and nature thrive in harmony. Dole’s Tropical Gold Pineapples, Ecuador bananas and Bobby Bananas are proudly certified by Rainforest Alliance, reinforcing Dole’s commitment to sustainability, worker’s wellbeing and high-quality products. To see the full details of the Dole Promise visit dole.co.nz. FMCG BUSINESS - NOVEMBER/DECEMBER 2021
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[ sustainability ] In the Good Food category, which is sponsored by New World, the finalists are: • All Good • Citizen • Golden Bay Fruit • New Zealand Food Network • Ngāti Whātua Ōrākei • The Sustainable Food Co • Thieves Tea • Wholly Cow
Sustainable move for Meadow Mushrooms Meadow Mushrooms is set to make a big leap forward in its goal to reduce its carbon footprint and become a Net Zero carbon business with the announcement of co-funding from the government. With financial support from the Government Investment in Decarbonising Industry Fund (GIDI), Meadow will replace their current diesel fired boiler with a low carbon electric option. The move to an electric boiler will significantly reduce greenhouse gas emissions at the company’s main mushroom growing and packing site in Hornby, Christchurch. The company is the largest producer of fresh mushrooms in New Zealand with five sites and a team of nearly 500 people. They deliver over 9 million mushrooms a week to wholesalers, distributors and retailers across the county and lead the industry. Meadow Mushrooms CEO, Todd Grave says the company is delighted to be named as a successful recipient of the GIDI fund. “Replacing diesel as a fuel source is critical to achieving our goal of decarbonisation. We recognised that moving to a cleaner energy source made good business sense. With this co-funding from EECA and the assistance of Meridian Energy and Orion Energy we will fast track our move to using electricity to lower the impact of our process on the environment.” Grave says the job of the boiler is to produce live steam for Meadow’s mushroom growing site. The steam cleans and sanitises our mushroom growing facilities to help control mushroom diseases without excessive use of pesticides and chemical sanitisers - a process which is commonplace in the mushroom industry. He estimates a reduction in carbon emissions of 39,000 tCO2 over a 25-year lifespan for the new boiler, a very significant carbon abatement. This represents a 65% reduction in Meadow Mushrooms' fossil fuel usage. For the Meadow Mushrooms business, the move to a low carbon option is just one initiative in a wider plan for improved sustainability. Recently the company has moved to using more electric forklifts on site, replacing petrol tractors with electric trucks, improving the efficiency
“REPLACING DIESEL AS A FUEL SOURCE IS CRITICAL TO ACHIEVING OUR GOAL OF DECARBONISATION. WE RECOGNISED THAT MOVING TO A CLEANER ENERGY SOURCE MADE GOOD BUSINESS SENSE.” TODD GRAVE, CEO, MEADOW MUSHROOMS 28
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Hon Dr Megan Woods announces Meadow Mushrooms as a recipient of the Government Investment in Decarbonising Industry Fund.
of their chilled water plant and improving insulation. They have also changed their growing room lights to LEDs that have been designed by Meadow Mushrooms' engineers and are considered a world first for mushroom growing. Together with a few other projects, the company estimates it has abated or eliminated 320 tonnes of CO2 emissions in the last two years. But Todd Grave says there is much more to do. He says the business will focus on a carbon reduction strategy with greater energy efficiency, transitioning away from fossil fuels in the boilers and mobile plant, replacing refrigerants with low GWP options and a reduction in Scope 3 emissions through procurement processes. “Mushrooms are one of the most sustainably grown foods on the planet. They’re ready to pick in days, require minimal natural resources to grow and, thanks to their growing method they achieve one of the best yields per square metre of land in the agricultural industry. At Meadow Mushrooms, the environment is an integral part of our business, which is why our commitment to sustainability guides our decision making every step of the way - from composting, growing and packaging and everything in between. We are always looking for better ways to grow, recycle, reuse and regenerate. This latest move to low carbon electricity in our production is another step forward in looking after the environment.”
Plastic free wipes Tuffy XL wipes have made the change to plastic free. “As part of our journey to help make New Zealand cleaner and greener we have ditched the plastic from our wipes and replaced it with 100% plant-based viscose,” says Michelle Singh, Marketing Manager - Tuffy. “Tuffy XL 20 x 30cm sheets are up to 50% bigger than standard cleaning wipes* and are the only dedicated kitchen wipe on the market
[ sustainability ] with multiple usage occasions that extend outside of the kitchen. With naturally derived cleansers and olive oil infusion they are gentle on skin, with no need for gloves. The same great wipes are still just as Tuff on grease, now with the benefit of being plastic free.” Single use plastic wipes are on their way out and by 2025 are likely to be a thing of the past with consumers already looking to make the switch. Tuffy plant based, plastic free wipes are made with renewable fibre, and while they will biodegrade over time, we recommend disposing them in your rubbish bin – NOT flushing or composting. Disposal in landfill also ensures you don’t contaminate your compost with whatever you have cleaned up with them. Being strong and XL, one Tuffy wipe can tackle any job, and depending on the job, you can rinse and re-use. “As a foundation member of the Soft Plastic Recycling Scheme, all the packaging across our Tuffy range, including wipes is recyclable, just remember to remove the wipes lid before recycling,” says Singh. For more information visit https://www.cottonsoft.co.nz/product-tuffy/ *More than 50% bigger sheets than most leading supermarket plant based cleaning wipes. Big 20x30cm sheets vs. most competitor 230×160 (or smaller) sheets
“AS PART OF OUR JOURNEY TO HELP MAKE NEW ZEALAND CLEANER AND GREENER WE HAVE DITCHED THE PLASTIC FROM OUR WIPES” MICHELLE SINGH, MARKETING MANAGER - TUFFY [ Q&A ]
SEA CLEANERS ON A MISSION TO REDUCE MARINE WASTE FMCG Business caught up with Hayden Smith, Founder and Captain of SEA CLEANERS, for a quick chat.
Please tell us briefly about SEA CLEANERS. We currently run a fleet of four boats, including one funded by The Coca-Cola Foundation, that reduce waste in our marine ecosystem by picking up litter from the ocean. We also work to educate people about the negative impact of litter on marine life. Each month we pick up 160,000 litres of litter across our fleet, which equates to five shipping containers. This means we have collected approximately 11.5million litres of litter since 2002. It’s a lot, but we still have work to do. That’s why we’ve built six more boats that will collect marine litter at different locations across New Zealand.
How can the industry help to keep our precious waterways clean? Sustainability needs to be at the forefront of every decision a business makes, from manufacturing to product consumption. The industry must also
seek every opportunity to educate consumers about the proper way to recycle, whether that’s through packaging or marketing. Having young people in corporate leadership roles who care, who understand the value of sustainability and who can help drive decisions is key.
What are your thoughts on responsible recycling in New Zealand? It is constantly changing but there is always room for improvement around infrastructure that will drive better habits, such as a Container Return Scheme. It is important for companies to explore new technologies too and consider what materials their products are made of and educate their customers.
How is The Coca-Cola Foundation grant helping you? It has enabled us to do more of what matters to us, which is keeping our marine ecosystems clean while educating consumers. The support has enabled the continuity of our services, while increasing the volume of our activity in the ocean. FMCG BUSINESS - NOVEMBER/DECEMBER 2021
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[ sustainability ]
NZ’S FIRST CERTIFIED CARBON ZERO FREE RANGE CHICKEN NOW ON THE MENU WITH WAITOA Kiwis wanting to do their bit for the environment can now enjoy the carbon zero taste of Waitoa Free Range chicken – the first carbon zero free range chicken in Aotearoa New Zealand as backed up by Toitū’s independent certification. New Zealand households have increasingly been switching to chicken as their choice of animal protein. Chicken has the lowest carbon footprint compared to other land-based meat proteins and Waitoa is set on reducing its greenhouse gas (GHG) footprint even further. ‘’We know that Kiwis care for the environment and want to do their bit with the choices they make without compromising on taste and quality. Moving to carbon zero certification makes it easier for our customers to enjoy premium, delicious, free-range chicken that’s better for them and the planet,” said Matthew Easton, General Manager Sales and Marketing. “With Waitoa being based in the Waikato, the natural environment has always been a big part of the brand. We started free range poultry farming 14 years ago and we’ve been serving up Waitoa to a growing number of Kiwis ever since. Our external Carbon Zero certification proudly sits alongside our SPCA Free Range certification - which Waitoa has held since 2013. Having both of these standards gives our consumers assurances that we are doing the right thing for animal welfare and the planet. We’re about making more conscious choices and helping retailers, customers and communities to do the same.” “I applaud and congratulate Waitoa for becoming New Zealand’s first Toitū carbonzero™ certified free range chicken product producer. Waitoa has shown a real commitment to measuring, managing, and mitigating its impact on the environment and we at Toitū are proud to support Waitoa in its ongoing commitment to taking credible, science-based climate action and
showing New Zealanders and the world that our net zero future is achievable,” said Becky Lloyd, Chief Executive of Toitū Envirocare. “We’ve measured Waitoa’s carbon emissions from growing the feed, raising the chicken, processing it to distribution and washing the dishes after a Waitoa meal. We’ve even offset the emissions for the space Waitoa has in store. The measurement stage gave us a much greater understanding of our footprint, which will help us focus on the areas that matter most when it comes to reducing our footprint further. Waitoa has partnered up with Toitūapproved local projects in Marlborough and offshore to offset unavoidable carbon emissions.” Waitoa is committed to Science Based Targets on GHG emissions that align to the UN 2015 Paris Agreement, as well as water use and landfill waste reduction targets. All these measures have improved year-onyear and more than 90% of solid waste generated from operations is diverted from landfill. “We take an evidence-based approach to reducing our footprint leading in reducing carbon emissions, water stewardship and sustainable agriculture and production. Our strategy is about doing good for our people, community, environment and customers so we can leave both the business and the environment in a good place for the next generation. Sustainability is a key priority for both us and our customers, so we see the launch of Waitoa Carbon Zero as a big step in the right direction to meet these goals,” added Matthew. For more information, visit www.waitoafreerange.co.nz Orders can be placed with your territory manager or customer service on 0800 800 785. * Source: GHG Emissions Per 100g Protein (Poore & Nemecek, 2018)
“OUR EXTERNAL CARBON ZERO CERTIFICATION PROUDLY SITS ALONGSIDE OUR SPCA FREE RANGE CERTIFICATION”
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FMCG BUSINESS - NOVEMBER/DECEMBER 2021
www.waitoafreerange.co .nz
[ fresh produce ]
BEST IN SEASON Summer is coming and brings with it a colorful array of fresh produce, delivered to exceptional standards by our hard-working growers. Berries, including strawberries, raspberries, blueberries, blackberries and boysenberries are now in season and demand for them will soar in the lead-up to Christmas. Freshly harvested sweetcorn comes to market in December, as does a refreshing summer favorite, watermelon.
Strawberries New Zealand’s strawberry season hits its peak from mid-November to mid-December with consumer demand escalating, so ensure you have good stock levels available. Strawberries will fly out the door in the week leading up to Christmas. Good volumes are expected over the summer. What to look for: Strawberries will not ripen once they are harvested, so if they don’t look ripe, they never will be. Select bright red berries with a natural sheen and fresh, green leaves. Avoid those with white tops or tips. Storage/handling: Strawberries are highly perishable and should be stored and displayed under refrigeration at 0-2°C. The only exception to this is if stock turnover is high.
Potatoes Potatoes are one of our most popular vegetables. They are available year-round, however new season potatoes are harvested from October to February. They generally have thinner, flakier skins and are best handled gently and eaten fresh rather than stored. What to look for: Choose potatoes with no cuts, bruises, green patches or shoots. The skin of a new potato is very delicate and should be able to be easily flicked off with your fingers. Storage/handling: Potatoes should be stored at 7°C in a dark, dry, aerated place. They will sprout if kept above this temperature, and below the starch turns to sugar causing flavour changes.
Summer fruit Cherries and nectarines kick off the New Zealand summer fruit season in November, with apricots, peaches and plums following in December. The season is relatively short, running until March, with cherries finishing early February. Our three main growing regions – Central Otago, Marlborough and Hawke’s Bay are set for a great season with plenty of beautiful fruit 32
FMCG BUSINESS - NOVEMBER/DECEMBER 2021
“HANDLE ALL SUMMER FRUIT WITH GREAT CARE AS THEY ARE DELICATE.” on offer. Consumer demand will be high so ensure you allocate shelf space to accommodate all varieties. What to look for: Fruit should be plump, wellcoloured, fragrant and unblemished. All summer fruit will continue to ripen once harvested. Cherries are ripe when their skins are shiny and saturated with colour. Storage/handling: Handle all summer fruit with great care as they are delicate. Apricots, peaches, nectarines and plums should be kept at room temperature until they are ripe. Cherries can be kept chilled to avoid them losing their quality. Recommend customers buy little and often, then ripen on the bench to give that sweet, succulent eating experience.
Tomatoes A good volume of tomatoes are available on the local market throughout the summer months with growers offering a large range of varieties, from snacking tomatoes through to larger, tasty tomatoes for all round versatility. Tomato prices are at their best over summer, so great merchandising will entice consumers to buy multiple pack types and varieties. What to look for: Choose smooth, firm and plump tomatoes with an even colour and no blemishes. Deeply colored tomatoes indicate ripeness and contain the most flavour. Storage/handling: Tomatoes are susceptible to bruising so only build loose displays a maximum of two layers deep. Never refrigerate them as this can negatively impact flavour.
Join us on
www.unitedfresh.co.nz
[ profile ]
PROTECTING THE PLANET PAYS OFF A little earlier this year I wrote about the improvements councils around the country have been making to their plastics recycling. It’s good news environmentally and as a bonus it opens more opportunity for brands to improve the sustainability of their packaging. Within the FMCG sector plastic plays a significant role in ensuring food safety, so having more options offers greater creative potential. Even so, it’s important to understand the limitations and drawbacks of different plastics, including the real-world likelihood of them being recycled. At Brother we’ve recently completed a major brand refresh for Waitoa free-range chicken. Waitoa has an admirable commitment to sustainability, achieving Toitū Carbonzero™ certification. They are also the only poultry processor in the world to be certified by the Alliance for Water Stewardship. Brother_FMCG_HalfPage_210x147mm_July_PRINT.pdf Their concern for the environment meant that 1 16/06/21 3:51 PM
Winning sales by design For us, the only measure of successful design is that it works in the marketplace. That it grabs attention, steals hearts and wins sales. It’s what we’re known for, here at Brother Design. If you want to know how we do it, consistently, for all our different clients, get in touch. And let us design a way to win more sales for you.
Jenny McMillan, Business Development Director Ph: 021 193 2141 jenny@brotherdesign.co.nz
plastic use and recyclability were key considerations in refreshing their packaging. Subtle shifts in material choices can make a big difference and across their range the majority of their packaging is now recyclable. In keeping with their drive for continual improvement the race is on to add as much of their remaining packaging to the list as possible. A goal that’s increasingly in reach. It’s been inspiring to work with Waitoa and see their commitment to ever-improving sustainability. And it’s a real point of leverage for their brand, as can be seen in their new TV campaign and the website refresh we conducted for them. As consumers become more discriminating about their sustainability choices, it has made sure Waitoa will continue to occupy a place in Kiwi consumers’ minds that’s worth a premium. By Jenny McMillan, Business Development Director jenny@brotherdesign.co.nz
HEALTH & WELLNESS What’s driving sales in the personal care category this summer? Local suppliers share their news. Aotearoa’s most endangered birds will be the champions when consumers purchase a recently released Limited Edition ecostore Hand Wash. According to Forest & Bird, about 80% of New Zealand’s native birds are in trouble and some are at risk of extinction. As a proudly Kiwi company, ecostore wants to help turn this statistic around. That’s why they’re making some noise for New Zealand’s Underbirds, those birds lesser known by the public with less than 250 of each species remaining. ecostore will donate 50 cents from every Limited Edition Hand Wash to Forest & Bird, New Zealand’s leading independent conservation organisation, so they can keep protecting New Zealand’s native birds and their habitats. The donations will help Forest & Bird carry out greater predator control from rats, stoats, and possums. Further demonstrating their love of birds, the ecostore team designed each bottle 34
FMCG BUSINESS - NOVEMBER/DECEMBER 2021
featuring one of three Underbirds illustrations by artist and group CEO of ecostore, Pablo Kraus – Kakaruia, Tuturuatu, and Kakī. Kraus is excited about the opportunity to act on an issue close to his heart. “We’re proud to use our voice to raise awareness of the decline of our precious native species. By supporting Forest & Bird in their conservation efforts, we’re keen to inspire Kiwis to protect and restore Aotearoa’s wildlife and wild places.” Each of the Underbirds represent the variety of native habitats in Aotearoa – forest habitats, wetlands and offshore islands. Climate change and native habitat loss are huge threats for native birds (and for people). When rivers, forests, and oceans are healthy, both native birds and people will thrive. Kraus says, “These nationally critical native birds have beautiful voices, yet they’re at risk of falling silent.
[ category insights ]
“COMING THIS SEASON IS A WORLD FIRST, THE SUSTAINABLE SUNSCREEN STARTER KIT” BECKY CASHMAN, FOUNDER AT GOODBYE
It’s up to us Kiwis to make them a familiar sound in our environment once again. “We can all play our part in helping restore the environment so that our native birds can flourish. Volunteer, plant native trees, vote in Bird of the Year to support Forest & Bird with a donation, and reuse and refill our Limited Edition bottles.” ecostore’s partnership with Forest & Bird is the latest chapter in a story of a brand that’s been putting the environment first for almost three decades. Each year, ecostore releases a special Limited Edition product with a mission. Available at supermarkets nationwide and www.ecostore.com during Bird of the Year for a RRP of $7.99. Refill bottle is $10.99.
New Vanilla Balm and Sustainable Sunscreen Starter Kit Each year, over 1.5 million lip balm tubes are sold at supermarkets in New Zealand.* All in plastic, mostly with petrochemical-based ingredients and all thrown away when empty. “Finally, balm and packaging that makes sense,” says Becky Cashman, Founder and Product Maker. In an aluminium tin, holding 12g or 15g, all Goodbye OUCH balms are for lips AND skin, meeting the demand for products to be more useful, more sustainable and made consciously. Goodbye OUCH was established in 2013 with lead product Manuka Balm, and Sun Balm SPF 50 added in 2018. Vanilla Balm is brand new this season, a happy collaboration with Heilala Vanilla which has resulted in this delicious, certified vegan balm. Cashman has been leading Goodbye for over 20 years, beginning with Goodbye SANDFLY while working as an outdoor guide. “This has been the #1 selling natural repellent in supermarkets since 2009,” she says. “Coming this season is a world first, the Sustainable Sunscreen Starter Kit, which offers high-performance Sun Balm sunscreen in a refillable system without plastic tubes or bottles. This is possible because of our New Zealand-innovated, water-free formulation.”
Cashman explains, “One small thing can make a BIG difference. It means the world to all of us.” All products are certified natural by NATRUE and audited by BioGro. “After five years, Goodbye is still the only personal care brand in New Zealand supermarkets holding this rigorous certification,” says Cashman. For more information and orders visit goodbye.co.nz *IRI annual data March 2021: 1,555,834 lip balm units ASNZ 2604: 2012 Sun Balm has been fully tested to the sunscreen standard
Keep the fun going with Banana Boat With summer upon us; time outside means fun time! Banana Boat has been protecting Families for 40 years. All formulations are SPF50+ and tested to the highest sunscreen standards. “New Zealand families can be assured they are protected while doing all the fun stuff,” says the Banana Boat team. “New Banana Boat Kids Sunscreen Lotion 200g is perfect for children’s delicate skin. • SPF 50+ broad spectrum UVA/UVB protection • Won’t run into eyes • Non-greasy • Fragrance free • 4-hour water resistant “It’s ideal for protecting active kids. Keep the fun going with trusted sunscreen protection. Banana Boat Sunscreen lasts as long as the fun does,” says the Banana Boat team. www.bananaboat.co.nz
“BANANA BOAT HAS BEEN PROTECTING FAMILIES FOR 40 YEARS” FMCG BUSINESS - NOVEMBER/DECEMBER 2021
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[ category insights ]
New look for DOMINATE range A trusted mainstay on grocery shelves for 21 years, DOMINATE was founded in the back of a barbershop by two friends who shared a sense of frustration for men’s hair products that were overpriced and poor quality. Using traditional beeswax, a converted washing machine drum and a wooden spoon borrowed from the café next door, the very first batch of DOMINATE hair wax was made. And 21 years on, Source: NielsenIQ Total Supermarkets - MAT to 10/10/2021 Val $ Sales
Val % Chg YA
PERSONAL CARE
1,071,518,050
-1.1%
ORAL CARE
155,229,306
1.9%
HEALTH SUPPLEMENTS
130,761,973
2.0%
HAIR CARE
118,684,287
-1.0%
PERSONAL WASH
117,049,367
-8.5%
PATENT MEDICINES REMEDIES
101,362,592
-5.4%
SANITARY PROTECTION
86,184,290
1.7%
SKINCARE
76,176,219
-2.9%
DEODORANTS FRAGRANCES
66,844,898
5.0%
SHAVING NEEDS
50,620,112
-0.3%
COUGH AND COLD TREATMENTS
39,957,851
11.8%
SUNNING PREPARATIONS
30,030,531
-7.7%
HAND AND BODY (EXCL. BABY)
26,383,168
-3.4%
HAIR COLOURANTS
26,377,348
-8.1%
FAMILY PLANNING
16,500,006
0.0%
COSMETICS
11,462,978
-3.4%
HAIR BEAUTY HYGIENE ACCESSORIES
10,189,161
3.8%
COTTON WOOL PRODUCTS
7,431,240
0.7%
DOMINATE has established itself as an iconic styling brand and still proudly sits as New Zealand’s #1 men’s styling brand*. To mark this milestone, DOMINATE is relaunching its new and improved product range. With redesigned premium packaging and harnessing more powerful and natural ingredients to suit every styling need, DOMINATE introduces its updated range of affordable, barber-quality styling products. “As Dominate celebrates 21 years of being a leading men’s styling brand, we felt it was time to stepchange everything – to improve packaging, add more benefits to the formulations and modernise our look,” commented Shane Young, Co-founder. DOMINATE’s new and improved formulations are enriched with active ingredients such as sage, hemp and aloe vera to achieve any range of style, while also targeting men’s key hair concerns, including hair thinning and loss, lack of volume, and scalp conditions. The formulations remain crueltyfree, veganfriendly and paraben-free. “We have seen a lot of change in the men’s styling category over the last 20 years and the Dominate brand has been on a constant journey to ensure we are meeting consumer needs. In 2021 however, we have seen the most significant shift in men’s styling requirements with products not only needing to be on-trend with ingredients and function, but also to do more than just style the hair by actually looking after hair and scalp health,” says Anthony Gadsdon, Co-founder. The new packaging not only looks better but is also better for our planet. Modern barbershop-style pots use recycled content while aluminium lids allow for recyclability, both leading to a more sustainable future for the brand. DOMINATE’s brand mission remains the same to produce affordable, high-quality styling products that are locally and ethically produced. *IRI Data Source MAT 16 May 2021. Data sourced from IRI MarketEdge based on data definitions provided by Essano Limited
FMCG Business produces a monthly snapshot of category news and highlights, based on information from participating clients and Nielsen data available at time of print. To showcase your products in upcoming category reports, please contact trubanowski@intermedianz.co.nz. 36
FMCG BUSINESS - NOVEMBER/DECEMBER 2021
[ health & wellness ]
FMCG BUSINESS PRODUCT OF THE YEAR CG
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PRODUCT OF THE YEAR
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This year’s winner of the FMCG Business Product of the Year trophy is Daily Good – healthy shots that are formulated with natural and organic ingredients to boost your immunity, supported by zinc and NZ mānuka honey, turmeric to decrease inflammation and ginger to aid digestion. Based on sustainable growing practices and responsible manufacturing methods, Daily
•F M
2021 WINNER REVEALED
Good is one of a kind – an immune booster, formulated with zinc gluconate. It follows macroconsumer trends, answering to the 60% of global consumers looking to natural food for immunity (Source: INNOVA Consumer Survey 2020). Each recyclable glass bottle includes seven daily shots that can be taken neat or enjoyed diluted, in hot or cold water. Proudly made in New Zealand from local ingredients, plus USDAcertified organic turmeric and ginger sourced from Daily Good’s partner farm in Fiji, where the origins of the ingredients can be traced back to the very field that they were planted in. Daily Good is good for you and for the planet - it not only naturally boosts your immunity, but also provides a pathway out of poverty for hundreds of Fijian women.
Daily Good Co-Founders James Sweetbaum and Rhona MacKenzie were thrilled to receive the FMCG Product of the Year trophy.
“BASED ON SUSTAINABLE GROWING PRACTICES AND RESPONSIBLE MANUFACTURING METHODS, DAILY GOOD IS ONE OF A KIND” Gluten-free, dairy-free, organic, with no added fillers or nasties, Daily Good is produced by Red Shoots, proudly NZ owned with all products made here in Aotearoa. All their organic ingredients have Bio Grow certification, plus the ginger, turmeric and blackcurrants have Global GAP certifications. For more information visit www.dailygood.co.nz
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FMCG BUSINESS PRODUCT OF THE YEAR Do you have a Hero product that stands out from the crowd? If there’s a tasty tastebud teaser, NPD rockstar, or best seller in your portfolio that deserves to be crowned ‘Product Of The Year’ - we’d love to hear from you! We’ll showcase some of the finalists in upcoming issues and reveal the FMCG Business Product of the Year later in 2022.
UCT OF THE OD YE PR A
To find out more on how to enter please email: trubanowski@intermedianz.co.nz FMCG BUSINESS - NOVEMBER/DECEMBER 2021
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[ good business ]
SUPIE SECURES $2.5M SEED FUNDING Online supermarket startdiscover products that best up Supie has secured $2.5 match their needs. million in seed funding, to Supie now delivers to assist with the company’s more than 6000 members future growth. and reported 1700% growth New Zealand venture capital during Auckland’s most recent firm Icehouse Ventures led the lockdown. most recent funding round Balle says on Supie’s and the company said the website: “We’re a small team new funds would be invested of passionate Kiwis with big in driving growth through ambitions to make a true marketing and innovation. impact. We believe food is The funding round was the most powerful force for also supported by Enterprise change. For our families, New Angels and included funding Zealand, and our environment, from Arc Angels, a fund so every day we are working focused on investment in towards a more sustainable Supie offers favourite pantry staples, artisan female entrepreneurship. way we buy and sell food in products and fresh produce, delivered to your door. Founded by Aucklander New Zealand. Sarah Balle earlier this year, Supie initially launched with an online “We make socially conscious decisions in everything we do, as grocery offer for shoppers in the Auckland region. Supie offers favourite everything we do today will affect all of our tomorrow. So, every product pantry staples, artisan products and fresh produce, delivered to your on Supie has been hand-selected by us and aligns with our everyday door. Shoppers can also filter over 50+ “Diets & Values” to easily mission to create a better tomorrow.”
[ sponsored content ]
DATELLA – NO MORE SUGAR CRASHES!
Would you like to indulge without guilt? Satisfy your sweet cravings the natural way, with dates! Datella spreads are a healthy alternative to sugary jams or calorie-heavy nut butters. They are versatile and go well with pancakes, in smoothies and yoghurts, on toast, in porridge, or just eat it straight off the spoon! It’s a perfect natural sweetener! Ola Berezhnaia, the founder of Datella, says: “We refuse to use any artificial nasties. Datella only 38
“DATELLA ONLY CONTAINS ORGANIC DATES, WATER AND A FEW SPICES.”
FMCG BUSINESS - NOVEMBER/DECEMBER 2021
contains organic dates, water and a few spices.” There are four indulgent flavours to try: chocolate, cinnamon, mixed spice, original. Datella is also: • Vegan • No added sugar • 22 calories per tbsp • Nut free • Gluten free • NZ made • Dairy free Shop our assortment of vegan, paleo, low glycaemic date spreads! www.eatdatella.com info@eatdatella.com
[ export ]
NZ SECURES HISTORIC FREE TRADE DEAL WITH THE UK News of a free trade agreement (FTA) between New Zealand and the United Kingdom has been welcomed by the business sector. Export tax on nearly all products will be wiped from day one of the historic agreement, providing a boost of almost $1 billion to New Zealand GDP and unprecedented access for New Zealand exporters to the UK market. The innovative and meaningful FTA was announced in October, with an unprecedented elimination of 97% of tariffs. Industry representatives welcomed the deal, calling it a game changer with significant benefits for local exporters of fish and seafood, honey, wine, onions, meat and dairy products. There are also provisions to improve business travel and work arrangements between the countries. The FTA would eliminate tariffs on all UK goods into New Zealand, and tariffs on about 63% of NZ goods currently exported to the UK. Sheep meat and beef would still be subject to tariffs but have a quota
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MAKE SURE YOU GET THE MOST OUT OF YOUR FOOD.
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that would increase each year for duty-free exports until the 15th year after the agreement, while butter and cheese would have tariffs reduced until the sixth year. The agreement is expected to be finalised over the next few months and includes provisions for Te Tiriti o Waitangi, telecommunications and digital trade, investment, intellectual property, environmental concerns, animal welfare, and efforts to combat gender inequality and modern slavery. The UK is a crucial market for some of our key exports, with two-way trade worth NZ$6 billion pre-COVID. Modelling shows New Zealand exports to the UK will increase by up to 40% and increase GDP by up to $970 million, saving exporters an estimated $37.8 million per year, as a result of the agreement. New Zealand is the second country after Australia to secure an FTA with the UK post-Brexit.
Taiwan
China
In the food and beverage business, identifying and controlling your competitive edge is the secret ingredient for success. At James & Wells, we have an entire team dedicated to the cause. We can help you own and leverage your innovative brands and ideas, facilitate business opportunities and ensure your labelling is compliant.
wwww.jamesandwells.com ww.jamesandw ells.com
[ product design ]
ARE YOU GUILTY OF IGNORING UNIT SALES AS A POWERFUL MEASURE FOR YOUR BRAND?
Sam Allan Creative Director Onfire Design
As supermarket retailers start to develop and look at richer shopper data to make decisions around ranging, FMCG manufacturers will need to understand a whole new series of metrics, how they reflect shopper behaviour and how they will shape the future of their brands and ranges. For some suppliers, it will take a number of years to become proficient at this. In the meantime, if you buy scan data there is already a very basic shopper metric available to you that many businesses ignore. Many FMCG business are focussed on top line sales (so look at $ scan sales/share) and/or have P&L’s heavily reliant on volume to drive factory efficiencies and overhead recovery (look at volume scan sales/share). Often these two groups of scan data take precedent and become the focus internally for any ongoing analysis and tracking of success and trends. What is often missed is the power of analysing unit sales and how this set of data can help identify changes in shopper behaviour and brand choice, at least at a total level. Unit sales are a direct measure of how many times a shopper has reached out, selected your product, put them in their trolley or basket and scanned and paid for them at checkout. Unit sales are reflective of the times a shopper has had your packaging in their hand; its format, its design, its functionality. When you compare unit sales, share and trends
“WE ARE FOCUSSED ON CREATING PACKAGING THAT ‘POPS’ AND WORKS HARD AT STANDING OUT” 40
FMCG BUSINESS - NOVEMBER/DECEMBER 2021
over time versus the competition, it paints a different story and provides complementary insights to add to the value and volume information already being looking at. Together these sets of measures can start to paint a more robust picture of shopper behaviour change at a category level (the WHAT) and should trigger a number of assumptions or questions your business will want to answer around the drivers of this change (the WHY). Whilst we know there are a number of factors that drive shoppers to select a pack from shelf (like price, promotions, location on shelf, number of facings); as a design agency we are focussed on creating packaging that ‘pops’ and works hard at standing out amongst the competitor set. At Onfire Design, we pride ourselves in creating packs that help ignite brand growth, that have shelf standout, but that are true to your brand positioning and therefore leverage any existing brand assets. We believe our packaging design will give your products the best chance of being picked up off shelf. If you are keen on resetting or refreshing your brand or are developing a new brand altogether, reach out and talk to us about how we can create packaging that will wow shoppers and help drive unit (and $/ volume) sales for you! Contact Sam Allan, Creative Director on 021 608 204, or sam@weareonfire.co.nz.
[ sponsored content [ xxxxx ]
NEW BAKERY RANGE FROM MRS MAC’S
Keeping with its tradition of being pie-oneers in the frozen category, Mrs Mac’s Bakery is re-launching its product portfolio with a new bakery range. The brand will be rolling out changes to its core range, unveiling new pastry, new fills, and new branding that will showcase Mrs Mac’s bakery heritage. The product changes were tested in consumer research, achieving preference scores vs competitor brands*, and the launch reflects Mrs Mac’s commitment to continuous improvement. Mrs Mac’s NZ Country Manager Julia Hunt says, “Category data shows bakery is the primary purchase location for hot pastry products, and the brand changes will elevate our core range to bakery quality. These exciting changes will benefit our retail partners who can leverage our core range to elevate their frozen category, broaden their appeal across shopper demographics, and use Mrs Mac’s to drive value into the category by commanding premium prices.”
To further excite shoppers, Mrs Mac’s bakery is also launching a new format into the frozen category. Pastry Bakes, which are square pockets of pastry filled with delicious savoury fillings, will roll-out into supermarkets from October. The introduction of Pastry Bakes has been synchronized with the relaunch of the brand and the roll-out will be supported with a national TV campaign. * Consumer sensory evaluation, November 2020 & April 2021
READY WHEN YOU ARE To ignite your brand and packaging, call Sam Allan on 021 608 204 or sam@weareonfire.co.nz. www.we
areonfire .c
o.nz
[ FGC ]
A COMMITMENT THAT CAN START TOMORROW
Katherine Rich Chief Executive NZ Food & Grocery Council www.fgc.org.nz
food& grocery COUNCIL NEW ZEALAND
The Commerce Commission Market Study into grocery retailing has been thorough and has exceeded all my expectations in terms of the meticulous nature of the research and information gathering from the perspective of economics and competition law. It has been great to see like-minded groups and advocates join the discussion about how to improve competition, from former FGC CEO Ernie Newman, General Manager of Night’nDay Matthew Lane, and CEO of Supie Sarah Balle, to grocery retail and sales experts Hexis Quadrant. Of course, the surprise competition campaigner to burst into the debate was monopoly-buster Tex Edwards, who played a key role in introducing competition into the telecommunications sector and established 2degrees. Independent store owners, consumers, suppliers and community groups such as National Council of Women, Consumer New Zealand and Poverty Action have all said things need to change for the benefit of consumers. The lack of competition ultimately harms them through prices, lack of choice, the discouragement of innovation, and lost jobs. It seems the only two groups to believe nothing is wrong and there is ample competition are parts of the duopoly. During the week-long Commerce Commission virtual conference where Commissioners were able to put questions to the supermarkets, there was not even acceptance there was in fact a duopoly. As one retailer professed with a straight face, “the market is not a duopoly. It has two players”. The supermarkets spent an inordinate amount of time arguing grocery retail was awash with competition from cafes, restaurants, The Warehouse, My Food Bag, the Chemist Warehouse, and the impending arrival of Costco. Judge competition not on the
past, but on the future, they told Commissioners. No evidence was presented that any of these additional food or grocery sellers constrained the market power of the duopoly. Some progress has been made, however. After 11 years since the idea was first raised, both supermarkets have agreed that a mandatory Grocery Code of Conduct would provide some helpful guardrails to business and supplier relationships. Both have been careful with wording, speaking about a “consumer-focused” code, the commitment to “engage in the development of a code”, and not that they would adopt one or abide by it. When there are codes that are working well in Australia and the UK, inferences from the supermarkets that we need to spend years working through a Code specific to New Zealand conditions sounded a lot like an attempt to kick the Mandatory Code of Conduct tin down the road sometime into 2024. As I told the Commissioners, the only upside to New Zealand’s lateness to the implementation of a code is that we benefit from lessons learnt in the UK and Australia and the steps they took to strengthen theirs. One thing is clear, and that is we do not need to wait for a Grocery Code of Conduct to expect that the principles of fair dealing be implemented as soon as possible. Both supermarkets can easily think about parts of their business and ask the question as to whether certain activities are fair to suppliers, whether it’s one-sided merchandising contracts, treatment of merchandisers, or deletion processes. A fair-dealing principle would be a powerful foundation and start to a New Zealand Grocery Code of Conduct for supermarkets. And that commitment can start tomorrow..
“WE BENEFIT FROM LESSONS LEARNT IN THE UK AND AUSTRALIA.” Supie CEO Sarah Balle weighed in on the discussion during the ComCom Market Study.
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FMCG BUSINESS - NOVEMBER/DECEMBER 2021
Monopoly-buster Tex Edwards joined the debate.
[ sponsored content ]
WORKPLACE LITERACY – WHAT IS IT, AND WHY DOES IT MATTER? It’s not just reading and writing – it’s the confidence to speak up at work, and apply problem-solving to issues as well as on-job numeracy and digital skills. Why does it matter? In New Zealand, 43% of us do not have functional literacy for everyday life. The impact on the economy is estimated at 2% of GDP – that comes out at a huge $6.8 billion at the last count. Organisations that engage with workplace literacy and numeracy programmes: • Improve employee engagement and wellbeing. • Lift foundation skills, which improves productivity. • Create a learning culture. • Grow skills so that a talent pipeline exists for succession planning (particularly topical given talent shortages due to Covid). • Improve health and safety outcomes. Check out just a few of the improvements that have come out of some of Upskills’ workplace literacy projects: • 90% reduction in waste product for a food manufacturing client through a simple zero cost redesign using scrap metal. • A redesign of machine covers and a switch from plastic to canvas created cost reductions of $90,000 per year (not to mention the environmental savings of reduced plastic).
• A sort and tidy initiative that meant stock to fix parts was closer to hand, saving $28,000 a year in lost time and transport. This important work is government funded – talk to Upskills about how a workplace literacy programme could be the boost your organisation needs to succeed in 2022.
Did you know workplace literacy programmes lift productivity and improve health and safety outcomes? Talk to us about how literacy and numeracy gaps in your workforce might be impacting your bottom line. There is government funding available for us to design a tailored programme and develop your people with our award-winning mahi.
Call us on
021 156 3242
The next funding panel meets
4th February 2022 Let’s get your application ready! wwupskills.co.nz w.upskills.co.nz |
info@upskills.co.nz
for more information
[ legal advice ]
DEFAMATION LAW IN NEW ZEALAND Defamation in New Zealand is governed by the Defamation Act 1992 and by a body of developed case law. Defamation is an area of law that is designed to protect a person’s reputation from unfair and unjustifiable attacks. Defamation requires a fine balance between the protection of reputation and the freedom of expression as contained in the New Zealand Bill of Rights Act 1990. Parsha Grant is a Solicitor at Steindle Williams Legal specialising in civil litigation and dispute resolution. swlegal.co.nz
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What is a defamatory statement? What makes a statement defamatory depends on both the context and circumstances in which the particular statement was made. Generally, it is a harmful statement made to attack a person’s reputation. Defamatory statements can be made either verbally or in writing. In proving a defamatory statement, the plaintiff (the person bringing the claim) must be able to prove the following three elements: 1. The defendant made the defamatory statement; 2. The statement was about or in relation to the plaintiff; 3. The statement was published by the defendant. Publication is a crucial aspect that must be determined in defamatory statements. Publication does not necessarily mean it has to be in a written format. Verbally making a defamatory statement to a group of people constitutes publication. However, a defamatory statement made in private or just to the plaintiff is not enough to constitute publication.
FMCG BUSINESS - NOVEMBER/DECEMBER 2021
What are defences to defamatory statement? There are four established defences to a defamation claim: 1. Honest opinion – The defendant must be able to prove there was a factual basis on which the opinion was based on. 2. Truth – If a defendant is able to satisfy the court that their statement was true then it is a complete defence. 3. P rivilege – Privilege provides immunity to certain groups of people. One example being ‘parliamentary privilege’ enjoyed by New Zealand’s politicians. 4. Consent – If the defendant can prove the plaintiff consented to the defamatory statement, then consent is a complete defence.
What remedies are available? The Defamation Act 1992 provides a number of remedies depending on the circumstances, the following are the most common remedies: 1. The plaintiff can seek a declaration that the defendant has defamed them, in order to clear their name. When the court grants a declaration, it usually also grants the defendant to pay the plaintiff’s client-solicitor costs. 2. I f the defamatory statement has been published in the media, the plaintiff can, within five days of learning of the publication, request a retraction or reasonable right of reply. If the person responsible for the publication agrees to publish a retraction or a reply, then they will have to also pay for the plaintiff’s client solicitor costs, other reasonable costs incurred by the plaintiff, as well as compensation for any pecuniary loss suffered by the plaintiff. 3. The plaintiff may ask the court for a recommendation that the defendant publish a correction. If the court makes the recommendation, then the defendant will usually be liable for the plaintiff’s client-solicitor costs. However, should the defendant refuse to publish a correction and is later found liable for defamation, the failure to publish a correction earlier is taken into account when assessing damages and the defendant will usually also be liable for the plaintiff’s client-solicitor costs. In assessing whether to commence proceedings, it is important to weigh up whether to begin what can often be lengthy proceedings, or to send a pre-action letter that clearly sets out the above elements that have been met and their consequences. Often a preaction letter is enough for a defendant to retract the defamatory statement and publish a correction.
[ tech ]
4 EMERGING CYBERSECURITY CHALLENGES FOR RETAILERS The New Zealand retail sector has experienced extreme highs and lows over the past two years. From the heights of an unprecedented month on month growth of 33% in June 2021 to the unexpected lows of continual lockdowns across the country, the industry remains uncertain regarding what to expect next. One fact that has become abundantly clear is that retailers must remain relevant and do all they can to stay competitive in a pandemic-disrupted world. The pivot to digital channels for many organisations prevented total collapse during this time; however, with business automation comes the risk of emerging cybersecurity threats that could damage customer experiences and interrupt business operations. Fortinet’s recent Networking and Cybersecurity Adoption Index 2021 revealed that just 32% of New Zealand small businesses say they had considerable measures in place in case of a cyberattack, with these levels decreasing in medium and large businesses. Retailers are a key target for cybercriminals because they collect customers’ payment card data and other personally identifiable information. Hackers who access this information can easily monetise the data and conduct identity fraud, use the information to access customers’ other accounts, and significantly damage the retailer’s reputation. Retail organisations currently face four key challenges: 1. Increase of connected devices Retailers rely on a raft of connected devices to operate. These include connected point of sale (POS) systems to process sales, along with Wi-Fi, security sensors, and cameras plus back-office systems like e-commerce systems, customer relationship management (CRM), and enterprise resource planning (ERP) solutions that store valuable consumer data. As each new device is connected, another potential doorway is opened for cyberattackers. These unsecured pathways can be costly and complex to address, so a simplified solution is required to take proper precautions. 2. Expansion of distributed networks Retail organisations often operate across a range of locations, which means their networks are distributed. Gaining visibility over these sprawling, multifaceted networks is challenging and can’t be achieved using legacy IT tools. Retailers must invest in state-ofthe-art, modern network security tools that deliver visibility and control across the entire distributed network with no gaps or blind spots. 3. Explosion of data With e-commerce continuing to boom and digital pay options being so accessible, retailers are collecting and
storing more data than ever before. One approach to protecting this valuable data is the implementation of a zero-trust security method that requires all users to authenticate their identity before being granted access to systems and granting access only to users who actually require those systems to do their job. While this may seem like a strong response, zero trust can minimise the risk of unauthorised access and data breaches. 4. Insider threats People are historically the weakest link when it comes to digital security and the retail sector is no different. Be it an innocent mistake during peak trade or a disgruntled employee taking malicious action, staff members can often be the cause of data breaches. Typically, insider threats come because employees aren’t well-trained to identify potentially cyberthreats and stop them in their tracks. To combat this potential threat, retailers should invest the time and resources required to sufficiently train staff members to recognise potential malicious attacks and avoid falling victim. This training should not be considered complete after a single session but should require regular communication and reinforcement to internalise security messages and modify their behaviour. By securing their own networks, retailers can both protect their organisational reputation and provide a strong customer service experience that will ultimately support business growth.
Jon McGettigan, Regional Director, Australia, New Zealand, and the Pacific Islands, Fortinet
https://www.ceicdata.com/en/indicator/new-zealand/retail-sales-growth
FMCG BUSINESS - NOVEMBER/DECEMBER 2021
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[ feature ]
TOP NZ CHEESE STORES REVEALED Fifteen stores - from Auckland to Oamaru - that specialise in selling locally made cheese have been named Top NZ Cheese Stores for 2021, marking the end of a successful NZ Cheese Month. This is the second year the New Zealand Speciality Cheesemakers Association (NZSCA) has recognised cheese shops across Aotearoa which celebrate and support the local industry by educating cheese lovers and promoting locally made cheese. Announcing the Top NZ Cheese Stores for 2021, NZSCA Chair, Catherine McNamara said it was wonderful for the country’s speciality cheesemakers to be supported by such a strong and vibrant retail culture. Two independent, experienced judges - Kerry Tyack and Kathy Paterson - assessed multiple entries against criteria including range of premium New Zealand cheeses, appealing shopping environment, enticing cheese display, knowledgeable and well-trained staff, regular cheese tastings and marketing of the store and NZ cheese.
Whitestone Cheese Bar, Auckland City
The Top NZ Cheese Stores 2021 are: Auckland • Farro, Grey Lynn • Farro, Lunn Ave (Mt Wellington) • Farro, North Store • Sabato, Mt Eden • Whitestone Cheese Bar, Auckland City Waikato • Over the Moon Dairy, Putaruru • Over the Moon Deli, Cambridge Hawke’s Bay • Hohepa, Clive • New World Hastings Wairarapa • C’est Cheese, Featherston Wellington • Moore Wilson’s, Tory Street Nelson • The Junction Shop, Appleby Christchurch • Barrys Bay Cheese, Akaroa • Charing Cross Cheesery, Riverside Market
Barrys Bay Cheese tasting in Akaroa
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FMCG BUSINESS - NOVEMBER/DECEMBER 2021
North Otago • Whitestone Cheese, Oamaru Cheese lovers will recognise the stores as they receive a certificate and an eye-catching ‘Top NZ Cheese Shop’ decal to display. They will also be included in the directory of New Zealand cheesemakers and farmers’ markets on the website www.cheeseloversnz.co.nz. Cheese lovers can search by region for cheese, which means wherever people are holidaying in New Zealand they can jump online and find a retailer that stocks a range of premium cheese that showcases their region and/or the country’s speciality cheesemakers. McNamara says retailers play an essential role in educating Kiwis about locally made cheese. “While cheesemakers are busy making cheese, retailers communicate directly to consumers, providing tastings of local cheese and explaining the stories behind the production. They ensure cheese lovers understand the love and care which goes into making local speciality cheese.” She said there are myriad of reasons for Kiwis to buy New Zealand cheese and good retailers help share this story. “Buying locally made cheese keeps jobs and money in our country. It also supports our regions as many of the cheesemakers and the farms that support them are in rural areas, and of course it reduced food miles! What’s more there’s a very good chance cheese lovers will get to meet their local cheesemaker and visit their dairy or cheese factory.”
Moore Wilsons, Tory Street in Wellington
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THE ONE DAY MARKETING MASTERCLASS FOR EVERY FMCG PROFESSIONAL Stay ahead of the game in NZ’s fast-moving grocery and retail sectors Elevate your FMCG brand with presentations from recognised industry experts, Q&A panel discussions and valuable networking opportunities.
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[ events ]
COMMITMENT TO SUSTAINABLE AGRICULTURE AT COP26 New Zealand’s finest cheeses will be presented for judging again in February 2022.
WHAT’S ON IN 2021/22 NOVEMBER
26 GROCERY CHARITY BALL
3 WORLD CHEESE AWARDS
https://s2nevents.eventsair.
Oviedo, Spain https://gff.co.uk/awards/worldcheese-awards/ 10 GO GLOBAL – THE ANNUAL EXPORTNZ CONFERENCE Aotea Centre, Auckland, NZ https://www.goglobal.nz/
2022 JAN/FEB
Auckland, NZ com/2021-grocery-charirty-ball/ book/Site/Register 27 NZ CHAMPIONS OF CHEESE 2022 Judging at WINTEC, Rotokauri Campus, Hamilton https://nzsca.org.nz/cheeseawards/
MARCH 26-27 CHOCOLATE & COFFEE FESTIVAL Auckland, NZ https://chocolatecoffeefestival.nz/
JANUARY 31-2 FEBRUARY ISM
MAY
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5 NZ CHEESE AWARDS
www.ism-cologne.com
FEBRUARY
Trophies announced https://nzsca.org.nz/cheeseawards/
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FMCG BUSINESS - NOVEMBER/DECEMBER 2021
The UK hosted the 26th UN Climate Change Conference of the Parties (COP26) in Glasgow from 31 October – 12 November 2021. The summit brought parties together to accelerate action towards the goals of the Paris Agreement and the UN Framework Convention on Climate Change. Some of the positive outcomes included 45 governments pledging urgent action and investment to protect nature and shift to more sustainable ways of farming. Governments and businesses joined farmers and local communities at COP26, securing new agreements to protect nature and accelerate the shift to sustainable agriculture and land use practices by making them more attractive, accessible and affordable than unsustainable alternatives. Twenty-six nations set out new commitments to change their agricultural policies to become more sustainable and less polluting, and to invest in the science needed for sustainable agriculture and for protecting food supplies against climate change, laid out in two ‘Action Agendas’. These commitments will help to implement the Glasgow Leaders’ Declaration on Forests and Land Use, which aims to halt and reverse forest loss and land degradation by 2030. COP26 President, Alok Sharma said: “If we are to limit global warming and keep the goal of 1.5C alive, then the world needs to use land sustainably and put protection and restoration of nature at the heart of all we do. “The commitments being made today show that nature and land use is being recognised as essential to meeting the Paris Agreement goals, and will contribute to addressing the twin crises of climate change and biodiversity loss.” The World Bank will commit to spending $25 billion in climate finance annually to 2025 through its Climate Action Plan, including a focus on agriculture and food systems. In a show of similar commitment from the private sector, almost 100 high-profile companies from a range of sectors committed to becoming ‘Nature Positive’. Commitments include supermarkets pledging to cut their environmental impact across climate and nature-loss. For more information visit https://ukcop26.org/news/
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FMCG BUSINESS - NOVEMBER/DECEMBER 2021
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[ convenience & impulse retailing ]
C&I NZ EXPO POSTPONED
Deb Jackson, Associate Publisher, C&I NZ
Welcome to Convenience & Impulse Retailing New Zealand (C&I NZ), created proudly in partnership with the New Zealand Association of Convenience Stores (NZACS). The roll-on effects of the global pandemic have been brutal for retail, with some parts of the industry harder hit than others. While sectors such as grocery and supermarkets have found a way to survive by swiftly pivoting to e-commerce and home delivery, convenience and impulse retailers haven’t had quite the same opportunity. The C&I NZ Expo is designed to bring together New Zealand convenience retailers and suppliers from all banners and brands to gather for two days of education, networking, and business building. And while we had hoped to be able to safely come together in April 2022, it is with sadness that we have made the decision to postpone the event. The C&I NZ Expo will now be held from 19-20 October 2022 at The Cloud in Auckland. This decision has been made to provide exhibitors and attendees
with more confidence of the safety of this significant event – and we look forward to seeing you all there. In this issue we speak with David Singer, the founder of Coalface Consulting, who has announced his retirement after more than 30 years of working in the convenience and grocery industries. We chat with Iqubal Basra from Pamma Retail Group about the expansion of Circle K into New Zealand. And we take a look at Z Energy’s financial results, which have shown pleasing growth in the group’s Z Espress food and beverage offer. We also chat with Sarah Alexander, General Manager, Green Room Brands, which has just secured the distribution rights to the health tonic brand, SHOJO. And we delve into the ice-cream category and see where the growth is coming from. We would like to thank David Singer, Iqubal Basra, Sarah Alexander, and IRI for their contributions to this edition of C&I NZ. Until next time, Deb Jackson
“THE C&I NZ EXPO WILL NOW BE HELD FROM 19-20 OCTOBER 2022 AT THE CLOUD IN AUCKLAND.”
PETROL AND CONVENIENCE NEWS PROUDLY BROUGHT TO YOU BY 52
FMCG BUSINESS - NOVEMBER/DECEMBER 2021
[ convenience & impulse retailing ]
DAVID SINGER RETIRES FROM COALFACE CONSULTING We catch up with David Singer, the founder of leading market research company Coalface Consulting, who has retired after more than 30 years in the industry. David Singer has spent more than 30 years working in the convenience and grocery industries. He came to New Zealand from South Africa in 1985 and began working for Coca-Cola and servicing the oil companies. He later went on to help the former Caltex to develop its retail programme. It was during this time that he came up with a business idea that would go on to become the leading provider of market research in the retail sector in New Zealand, Coalface Consulting. Founded in 1997, Coalface Consulting provides unique insights into the effectiveness of business relationships within New Zealand’s competitive FMCG space. It has become an essential service for suppliers and retailers alike. After more than 24 years of successfully leading the business, Singer has announced his retirement and passed the baton to his associates (Scott Birley, Mark Craig and Geoff Smith). “I’ve been working in and around the convenience industry for more than 30 years. I was at Coca-Cola for about seven years and then after that I did some consulting work for the old Caltex in helping them set up a retail programme,” reminisces Singer. “It was actually at this time that the idea for Coalface Consulting came about. I was speaking with one of my contacts who’d had a bad experience with one of his dealers, and I said to him that he can’t base his whole opinion off this one experience. “I said I could prove this to him with a proper survey, and so we started conducting these surveys asking the service station owners or operators if they were happy with the service they were getting at the coalface – and that’s how the business began.” It’s impressive to hear that when Singer first began conducting these Coalface surveys, it was all done on paper and mailed out via the post. “The concept was to get a read on the performance and quality of service from suppliers in-store and deliver this message back to the head office. It gave them a way to get a read on their performance against all other suppliers across different categories. And then we can even break it down by region and get even more granulated detail.
“LOTS OF PEOPLE USE IT DIFFERENTLY BUT AT THE END OF THE DAY COALFACE IS A RELIABLE AND INDEPENDENT MEASURE THAT BOTH RETAILERS AND SUPPLIERS CAN TRUST.” – DAVID SINGER “The work we do has become a very important source of information to give people a read on service performance by their suppliers across all categories. It’s peace of mind and a good way to keep track of how everybody’s performing and allows them to address any problems that are identified. “Lots of people use it differently but at the end of the day Coalface is a reliable and independent measure that both retailers and suppliers can trust.” Singer highlights that there have been many changes to the industry over the past 30 years, particularly in relation to the retail models in the convenience industry. “It’s hard to believe that when I first became involved you could not buy a coffee at a convenience store! “It really has been remarkable to watch the growth of coffee since the turn of the year 2000. For a new category to grow so exponentially and to watch how the different retail groups have developed and driven their individual coffee programmes. It’s just unbelievable. “But the growth of food-to-go to me has been the biggest change and I look forward to continuing to watch that evolve.” Now that he’s retired, Singer is looking forward to spending time with his family and heading to Melbourne, Australia, to visit with his daughter and newly arrived granddaughter – as soon as he is able to do so. We wish him all the very best in his retirement and thank him for his service to the wider FMCG industry over the past 30 years. FMCG BUSINESS - NOVEMBER/DECEMBER 2021
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[ convenience & impulse retailing ]
GREEN ROOM BRANDS TO DISTRIBUTE
SHOJO TONICS
SHOJO was formulated alongside New Zealand Registered Nutritionist, Nikki Hart, and inspired by traditional Asian remedies. Green Room Brands has set its sights on becoming a key player in the health tonics market after securing distribution rights to SHOJO. Sarah Alexander, General Manager, Green Room Brands, says there is a growing interest for health tonics globally. “We know that in the US the health tonic market is huge, valued at US$68 billion and growing rapidly, so we anticipate seeing this growth in New Zealand and the wider Pacific region too.” Alexander said that while there are already similar products in the New Zealand market, overseas brands have only just started to scratch the surface. Rogue Beverages, the Australian-based boutique beverage company behind SHOJO, was founded by three highly experienced senior executives, Paul Fitzgerald, Sean Cunial and Myles Davis, who have a combined 70 years of global beverage industry experience. They came together to challenge the industry’s status quo by accelerating the introduction of new global trends to local markets. They recognised that there was an untapped area of opportunity within the functional wellness category in Australia and New Zealand, so they
“WE ARE ALWAYS LISTENING, FOLLOWING TRENDS INTERNATIONALLY AND TRYING TO BETTER UNDERSTAND THE NEEDS OF OUR CUSTOMERS AND SUPPORT THEIR GOALS TOWARDS HEALTHY LIVING.” – SARAH ALEXANDER, GENERAL MANAGER, GREEN ROOM BRANDS 54
FMCG BUSINESS - NOVEMBER/DECEMBER 2021
created SHOJO, which was formulated alongside New Zealand Registered Nutritionist, Nikki Hart and inspired by traditional Asian remedies. SHOJO comes in two flavours, Turmeric and Red Ginseng, and contains a blend of natural and functional ingredients, including B vitamins, vitamin C and a source of antioxidants and ingredients that support normal immune function, metabolic function and neurological function as well as reducing tiredness and fatigue. “We believe that one of our biggest points of difference is that our products are not only good for you but taste great too,” says Alexander, who also flagged that there are already plans to grow the range and its distribution. “Health and wellness, especially during the pandemic, appears to be a continued conversation with more people wanting to better and boost their immune system,” she says. “We are always listening, following trends internationally and trying to better understand the needs of our customers and support their goals towards healthy living.” SHOJO Turmeric and SHOJO Red Ginseng Tonics will be available to buy in New Zealand at RRP $6.99. The 100ml shots are available in-store as single units, or online in single, taster packs (one of each), six-packs or 12-packs. SHOJO will be available at Select Bin Inn Stores, Naturally Organic, Mojo Coffee Roasters, and online at www.greenroombrands.nz. Green Room Brands encourages any other retailers to reach out to Sarah Alexander at hello@greenroombrands.com about ranging SHOJO. “We look forward to growing our partner base and expanding our sales in New Zealand, with a view to also be in grocery,” she says.
[ convenience & impulse retailing ]
NEW PRODUCT DEVELOPMENT CRITICAL TO ICE-CREAM CATEGORY New release products and larger pack sizes are leading the growth of the ice-cream category, writes Thomas Oakley-Newell. The importance of new product The ice-cream category makes development (NPD) to the ice up 5.3% of total food-based cream category has proven critical, product sales in the petrol and AT A GLANCE with new products accounting for convenience (P&C) channel • Ice-cream makes up 5.4% of food-based product sales 10% of the category’s sales and in the MAT to 1 August 2021 • New products accounted for 10% of total sales 92% of growth. but increased to 6.6% over the • The category grew 12.4% this year Research by IRI MarketEdge summer period, for 13 weeks to • Four of the top five growth SKUs are products launched over Petrol showed that the top the end of February 2021. the past 12 months performing new items, in terms There is indication that of MAT dollar sales, are the Oreo consumers are purchasing Sandwich Cookie and Tip Top larger pack sizes with volume Pascall Pineapple Lump Bar 100ml, and that four of the top five growth growth increasing by 15.9% and the average unit price jumping from SKUs were products released over the past 12 months. $3.84 to $4.03. The category recovered from a 1.3% decline in the previous year, The top five growth brands based on actual dollar growth are Oreo, bouncing back with a value growth of 12.4% as a result of lapping the Magnum Luxe, Ben and Jerrys, Maxibon, and Tip Top Pascall, which low sales from March to April 2020, when New Zealand experienced its account for 15.1% of total sales within the category but contribute to first lockdown and mobility was restricted. three-quarters of the category’s growth. FMCG BUSINESS - NOVEMBER/DECEMBER 2021
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[ convenience & impulse retailing ]
CIRCLE K OUTLINES NEW ZEALAND EXPANSION Global convenience and fuel giant Circle K has plans to transform the New Zealand retail fuel market. Circle K plans to open more than 100 stores across New Zealand, making it one of NZ’s largest grocery convenience and food service outlet chains. Pamma Retail Group (PMG), which purchased the master license rights of Circle K, estimates 30% of the sites will be greenfield with the remaining 70% conversions of current independent stores. Iqubal Basra, Site Development Director, said they currently have four stores up and running under the Circle K trademark but with the high number of independent convenience stores currently reaching out, this will expand rapidly. Basra says the target is to convert 2% of New Zealand’s 5,000 convenience stores to the brand. They are ideally looking for 200m2 sites that can operate 24 hours a day but can also work with sites with smaller footprints or that operate on reduced hours in rural or lower traffic areas. “The last four years have just been trying to build the systems and supply chains and put them all in place here and make sure the model works. Now we’re seeing a good return on investment, so we’re trying to replicate that and resell it on because it’s a proven model.” According to Basra, the appeal of converting to a Circle K is the improved retail offering – with stores carrying more than 2,000 different SKUs – and the potential to increase store margins. “Our margins are very good because of our food offer. We’ve got fryers, chips, combos, hot dogs, and your margin goes up quite dramatically because we’re
basically a fast-food chain in a convenience store. “What New Zealanders can expect to find in one of our stores is a significantly different retail experience from the traditional corner dairy and service station. The larger stores are a hybrid of a convenience store and prepared food outlet.” Basra said they have a comprehensive training program and team of specialists who can assist store owners in moving away from a dependence on tobacco as a revenue source, which is planned to be eliminated by the New Zealand Government by 2025. “With us, they will be able to leverage the buying power of a multinational along with the market intelligence and data insights that will help them progress with these changing customer behaviours and regulations.” Part of the expansion involves opening some of the first purpose-built electric vehicle charging stations across the country, and with that development will come a space catering to those waiting for their vehicle to charge including seating areas, televisions, and phone chargers. “The growth in EVs is set to impact the way fuel outlets are designed, and to address that change, Circle K NZ is planning to transform the retail fuel market – opening some of the first purpose-built EV charging and petrol stations at sites around the country as the industry closely watches how the EV trend will reinvent the traditional petrol station.” The search for new sites includes looking for service stations and operators that will be specifically designed to accommodate the growth of EVs in New Zealand.
“WHAT NEW ZEALANDERS CAN EXPECT TO FIND IN ONE OF OUR STORES IS A SIGNIFICANTLY DIFFERENT RETAIL EXPERIENCE FROM THE TRADITIONAL CORNER DAIRY AND SERVICE STATION.” – IQUBAL BASRA, SITE DEVELOPMENT DIRECTOR, PAMMA RETAIL GROUP
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FMCG BUSINESS - NOVEMBER/DECEMBER 2021
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[ convenience & impulse retailing ]
Z ENERGY SEES GROWTH IN FOOD AND BEVERAGE
The Z Espress food and beverage offer has enjoyed growth despite Covid lockdowns, writes Thomas Oakley-Newell. Z Energy’s store offer has seen growth of 17% in total transaction count versus the previous period, despite a nationwide lockdown. The company released its results for the six months to September 2021, revealing it had experienced its “highest year-on-year sales growth from tobacco substitute products, car wash, Z Espress food and beverages, despite being unable to sell higher margin products such as coffee and car wash at alert level four”. The best performing category in-store was its Z Espress food and coffee offer, which saw sales increase to $32 million, up from $25 million in the same period last year. Snacks increased from $12 million to $13 million revenue, and beverages (including chilled drinks like smoothies and frappes) grew by $3 million to $24 million. Tobacco substitutes trended up, with revenue increasing from $5 million to $9 million, as the category matures in line with the drive towards Smokefree Aotearoa 2025. Meanwhile, tobacco revenue decreased from $94 million to $84 million. Despite the lockdowns across the country, Z said its customers were appreciative of the company being open during Alert Level Four (AL4). “Commercial customers and essential workers took advantage of Z being open during AL4 while retail customers continued to use Z and Caltex as a ‘top-up’ shop to buy their everyday staples and avoid lengthy supermarket queues,” said Z. The company said it will continue its investment in c-store with 15 new to industry (NTI) sites targeted for opening by FY2024, as it moves towards its FY2025 goal of $500 million c-store revenue. “Of the 15 NTIs targeted, Z has confirmed two NTIs are underway with the closure of two other sites. During 1H FY22 one Caltex site was converted to an automated offer. The Z Espress store refresh design was finalised in 58
FMCG BUSINESS - NOVEMBER/DECEMBER 2021
August and two new format stores will be open before the peak Christmas trading period. Rollout of the new Z Espress format has been delayed by COVID-19 lockdowns and will now begin outside of Auckland.” The company is currently subject to a $2 billion takeover by Australian petrol company Ampol, with the Z Board unanimously recommending that shareholders vote in favour of the Scheme, which would result in overall value to Z shareholders of $3.83 per share. Ampol has committed to divest Gull to meet competition concerns, with the Commerce Commission expected to be interested in the divestment process. Also, in their Overseas Investment Office (OIO) application, Ampol has confirmed several benefits including enhanced security of supply and capital commitments to the energy transition. Shareholders will ultimately determine whether the transaction is completed or not. A successful shareholder vote requires 75% approval from 50% of issued capital. Total earnings of Z increased by 20% to $114 million versus the previous year’s earnings of $95 million. This is primarily due to increased refining processing volume and improved unit refining margin along with increased c-store sales and Z establishing a long emissions trading scheme (ETS) in the first quarter. Mike Bennetts, Z Energy CEO, said Z remains focused on its FY24 roadmap objectives. “To optimise the core business, transition the company to a low carbon future and maintain disciplined capital management. Z delivered on its four-point improvement plan against a challenging operating environment from COVID-19 related lockdowns and rising crude and product prices.” For the full 2022 financial year, Z Energy expects earnings to be between $270 million and $310 million despite ongoing COVID-19 lockdowns.
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