FMCG Business October 2022 by The Intermedia Group

fmcgbusiness.co.nz

L E A D I N G

I N D U S T R Y

N E W S

OCTOBER 2022 – Volume 9 – No 9

PLUS! DELI DELIGHTS n ICE CREAMS n NZ EVENTS n WHAT’S HOT n NEW ZEALAND’S LARGEST FMCG AUDIENCE

contents OCTOBER 2022

UP FRONT

EDITOR’S NOTE

INDUSTRY NEWS

SPECIAL FEATURES 22 ORGANIC, NATURAL & PLANTBASED FOODS 24 FISH & SEAFOOD Category news and IRI data 28

WE LOVE ICE CREAM!

DELI DELIGHTS

REGULARS

33 FMCG BUSINESS PRODUCT OF THE YEAR Another finalist is revealed 34 TABLELANDS: AFFORDABLE QUALITY PLANT-SEED SPREADS 35 SUSTAINABILITY Are we there yet? Jenny McMillan of Brother Design explains. 36 INDUSTRY NEWS AND INSIGHTS 37 ROMANOS & CHICAGO PIZZA RETURN IN 2022

10 BEST IN SEASON Fresh produce update

38 FGC A time for reflection – Katherine Rich signs off

11 COVER STORY Hellers donates its two millionth snag

39 JAMES & WELLS Less can mean more in the trade mark space

12 FEATURE Sugar-free innovations

40 MARKETING The original influencers

14 IRI The sugar-free sweet spot

15 WHAT’S HOT New products in store

EVENTS

COMPANY PROFILES

HEALTH & WELLNESS

26 MARIPOSA RESTAURANT HOLDINGS PARTNERS WITH FRUCOR SUNTORY 31 PROFILE Goodfood group – poised for growth

GOOD BUSINESS 32 INDUSTRY NEWS AND INSIGHTS

LEGAL ADVICE

42 FMCG BUSINESS MARKETING SUMMIT HIGHLIGHTS 44 CHEESE TASTINGS ARE BACK FOR NZ CHEESE MONTH

CONVENIENCE & IMPULSE RETAILING 48 OPINION Dave Hooker shares his views on New Zealand’s Smokefree future 50 NZACS AWARDS Peter Jowett Scholarship winners revealed

FMCG BUSINESS - OCTOBER 2022

[ editorial ]

EXCITING EVENTS AHEAD I’ve just returned from a holiday overseas and it was interesting to see that supply chain and cost of living issues were evident everywhere. Providing families with affordable, nutritious food seems a global challenge right now and the problems appear to be exacerbated by the climate crisis, which is affecting crops in many countries. However, I also noted that New Zealand seems to be miles ahead of some other countries when it comes to tackling plastic waste and recycling. Find out more on pg 32. This month we bring you a bumper edition of FMCG Business, with the latest product launches, category insights and top tips from respected industry experts, including FGC CEO Katherine Rich and IP specialists from James & Wells. Katherine and the James & Wells team were among our presenters at the recent FMCG Business Marketing Summit – you will find some of the highlights of this event on pg 42-43. Our team also attended the opening of Costco in Auckland, a vast 14,800m² megastore. Costco’s specialty is selling in bulk with lower margins than traditional retailers. As expected, everything is bigger at Costco, even the checkouts are extra wide to accommodate large trolleys and bulk product packs. Selling bigger items is a deliberate business strategy at Costco, as is making a big feature of certain ready-to-eat foods, like its “world-famous” hotdogs. The store also includes a bakery, pharmacy and food court. Local food and grocery suppliers are still on Costco’s radar – the retailer wants more Kiwi businesses to get in touch and offer more products. It’s about efficiency of scale, so rather than making lots of variations, make one sku that can be packed on a pallet. Suppliers who want to engage with Costco must think particularly about packaging and size on the pallets – goods are taken directly from trucks and stacked onto the warehouse floor, so appearance and practicality are key. October is going to be a super busy month, filled with exciting industry events such as the NZ Food Awards, Cheese Month, and the C&I Expo in Auckland. Check out the expo directory in this issue - we hope to see you at this unmissable event!

Tamara Rubanowski trubanowski@fmcgbusiness.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@fmcgbusiness.co.nz ph: 027 278 4761 ASSOCIATE PUBLISHER C&I NZ Deb Jackson d.jackson@c-store.com.au NATIONAL SALES MANAGER Vicky Bennett vbennett@fmcgbusiness.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@fmcgbusiness.co.nz

C&I Media takes its Corporate and Social Responsibilities seriously and is committed to reducing its impact on the environment. We continuously strive to improve our environmental performance and to initiate additional CSR based projects and activities. As part of our company policy we ensure that the products and services used in the manufacture of this magazine are sourced from environmentally responsible suppliers. This magazine is printed on Impress stock from Spicers Paper using FSC® MIX source pulp from responsible sources and other controlled sources. We print using BIO-inks that contain base materials from renewable resources including wood resin (rosin, colophony), vegetable oils, linseed oil and soy bean oil. This magazine is printed by ICG, an ToitŪ enviromark gold certified printer.

ISSN 2382-1663 (print) ISSN 2624-4802 (online)

ON THE COVER Hellers’ Sausages for Schools programme has hit a major milestone. On average over 300 fundraisers are supported every year by Hellers, or 30 schools a month. Find out more on pg 11.

FMCG BUSINESS IS PROUDLY ASSOCIATED WITH food& grocery COUNCIL NEW ZEALAND

FMCG BUSINESS - OCTOBER 2022

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 © 2022 - C&I Media (NZ) Ltd

[ news ]

NZ FGC APPOINTS NEW CEO The New Zealand Food and Grocery Council has appointed a new Chief Executive. Chairman Mike Pretty said: “I’m delighted to be able to announce Raewyn Bleakley as the Chief Executive of the Food & Grocery Council, to replace Katherine Rich who is stepping down after 13½ years. She will begin on Monday October 10.” “Raewyn is an experienced and successful senior leader who has worked across and within government for more than 20 years, 6½ of them in chief executive roles at various Raewyn Bleakley industry associations. “She comes to us after a short break from her most recent position as one of five Deputy Chief Executives at Fire and Emergency NZ for three years, where she was responsible for leading the Office of the Chief Executive. Before that she spent two years as General Manager Governance, Communications and Stakeholders, and three years as Region Director Central New Zealand at Waka Kotahi (NZ Transport Agency). “Her experience in member associations has been extensive. She

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started her career as New Zealand Regional Manager for the Hospitality Association and was appointed the first National Operations Manager, before taking on the dual roles of Chief Executive of Bus and Coach Association NZ and the Rental Vehicle Association of NZ. In 2012 she was appointed Chief Executive of Business Central, incorporating Wellington Chamber of Commerce. “Raewyn also has extensive governance experience, including directorships on the transport Industry Training Organisation Tranzqual, Motor Industry Training Organisation, New Zealand Chambers of Commerce and Industry Board and Management Committee and Wellington Zoo Trust (where she was also was Deputy Chair and Chair of the Finance, Audit and Risk Committee). “On behalf of the Board, I welcome the wide experience Raewyn will bring to the role. As she says herself, she has big shoes to fill, but we are confident she has the experience and skills needed to continue to take the grocery supplier sector forward.”

CHECK OUT WWW.FMCGBUSINESS.CO.NZ

[ sponsored ]

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FMCG BUSINESS - OCTOBER 2022

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[ news ]

MEET FOODSTUFFS’ NEW HEAD OF MARKETING FOR NEW WORLD International marketer, Giselle Bleakley she brings a combination of skills that joins the Foodstuffs New Zealand team as make her a perfect fit for the role and has the new Head of Marketing & Customer a proven track record in developing and Experience - New World. leading very successful teams.” Giselle comes from Asahi Beverages Giselle has built a career in marketing New Zealand, where she held a variety at world-leading companies including of strategic roles over an eight-year Fonterra and others across the globe. She period, including leading the launch of the discovered a passion for the fast pace Long White brand and achieving record and the end-to-end ownership of retail, market share for Asahi in the Beer and while working for Yum! on the KFC brand, Wine categories. one of the fastest growing quick service No stranger to the FMCG or retail restaurant brands in the UK. industry, Giselle comes to the New World “This is my dream job, it allows me to team with extensive experience as a senior bring together my experience developing Giselle Bleakley, Head of Marketing & Customer Experience - New World leader in a variety of insight, marketing and teams, creating customer focused sales roles spanning across a number of marketing and brand strategies, all while diverse industries, including dairy and fast food. leveraging a love for all things food related. The New World team are Dominic Quin, Group General Manager Marketing & CX, Foodstuffs world-class marketers and I’m really pumped to be leading them. NZ says Giselle is a highly skilled insight-driven professional, which “It’s also a real privilege to be able to contribute my skillset and makes her a great fit to lead the next phase of New World’s drive a positive difference for a 100% New Zealand owned and customer driven journey. operated business that is such a big part of communities all round “We’re excited to have the opportunity to work alongside Giselle, New Zealand,” says Giselle.

[ sponsored ]

TE PŪKENGA – A NEW ERA OF LEARNING FOR INDUSTRY Like strands of harakeke being woven together, our work-based training organisations, institutes of technology and polytechnics are joining together to become Te Pūkenga. Te Pūkenga will be Aotearoa New Zealand’s largest tertiary education provider. It will create better ways of learning for industry, focused on where our workforce needs to be, now and in the future. As one, national network, Te Pūkenga will provide flexible, career-focused learning that fits around the learner’s life – on-the-job, on campus and online vocational training. Working for everyone Te Pūkenga will be the cornerstone of a cohesive, sustainable vocational education system that helps improve wellbeing for all New Zealanders, and supports a growing economy that works for everyone. It will help New Zealand move to a vocational education system that puts learners in the centre. Closer to industry Te Pūkenga will work closely with industry and business to understand their needs. Directly aligning the training, we provide with the needs of employers and their staff. It’s about helping our communities and workplaces grow and thrive together, and providing businesses with knowledge and skills that are relevant to their changing industries. Fit for purpose Te Pūkenga is supporting a modern, future-fit workforce for Aotearoa. Learners are encouraged to stay connected 8

FMCG BUSINESS - OCTOBER 2022

with their whanau, culture and communities as they work and learn. The same, only better Local campuses, courses, support and training teams will remain in place, but are now part of Te Pūkenga. This will create access to a wide diversity of subjects and locations, and flexible ways of learning – on-the-job, on campus and online. Helping our people, our communities and our workforces grow and thrive together. Te Pūkenga. Learn with purpose. Find out more at tepūkenga.ac.nz

Work-based training that fits your business Our training will be relevant to the needs of business and industry. Te Pūkenga is working towards a modern, future-fit workforce for Aotearoa. Find out more at tepūkenga.ac.nz

[ fresh produce ]

BEST IN SEASON Fresh Spring salads will be high on the list for shoppers throughout October. The warmer weather and outdoor dining mark a change of behaviour away from more wintery dining habits. A broad range of lettuce varieties will be in plentiful supply this month, and apples and pears still make up the bulk of fruit sales at this time of year. Ensure shoppers are offered a range of different varieties and seek out the brightest fruit for displays.

Asparagus

“TANGELOS ARE A GOOD SOURCE OF VITAMIN C WHICH SUPPORTS HEALTHY BONES, GUMS, TEETH AND OVERALL IMMUNITY.”

Mid-September is the beginning of the annual asparagus harvest and retailers should plan to feature this highly seasonal, specialty vegetable from now until January. Local consumers love green asparagus, however, look out for purple asparagus to offset the green variety and provide a colourful in-store display. Best eaten raw, the purple variety has a flavour profile that is nuttier and sweeter than green asparagus as it contains a higher natural sugar content and it is less fibrous than the green spears. What to look for: Select straight, firm and fresh green or bright purple stems with trimmed ends and a minimum of white butt. Fresh asparagus is squeaky – when the spears are gently rubbed, they will make a squeaking sound; old asparagus has a rubbery texture and doesn’t squeak. Storage/handling: Asparagus have a high water content and will quickly dehydrate if stored in a dry environment. To ensure freshness refrigerate where possible and keep spears sitting in fresh water on display and in storage. Displays should feature crisp, snappy spears and be kept relatively small with old stock removed and frequent restocking direct from the chiller. Nutrition: Asparagus offers a range of benefits, it’s a good source of folate which helps support immunity, a source of vitamin B6 which is essential for use of protein by the body and contains potassium for healthy fluid and mineral balance.

Tangelo Seek out tangelos to add to your citrus displays, this lesser-known fruit are a mandarin/grapefruit hybrid and, while grown in smaller numbers to other citrus, provide your customers with a fresh flavour profile. What to look for: Ripe tangelos should feel heavy for their size with a bright orange rind, sometimes featuring a definite reddish 10

FMCG BUSINESS - OCTOBER 2022

hue. Firm or slightly soft fruit with smooth skin denotes a well-ripened tangelo. Storage/handling: Tangelos will store well at room temperature out of direct sunlight for a week, but if refrigerated will last much longer. Refrigeration also reduces diminishing vitamin content. Nutrition: Tangelos are a good source of vitamin C which supports healthy bones, gums, teeth and overall immunity.

Avocado Another good crop of New Zealand avocados is now available for retailers with over 80 million avocados picked over the past season. The main avocado season runs from August to February, with wholesale prices fluctuating throughout this time. What to look for: Bright green Hass avocados should not be displayed until they are olive green as the fruit takes too long to ripen and can cause customer dissatisfaction. Less than 20% of your retail display should be olive green with 80-90% of it being brown/green to purple/brown. Rotate stock frequently and do not display black avocados as they are overripe. Unlike the Hass variety, the skin of a Reed avocado will stay green when ripe. Storage/handling: Be aware that stock of avocados need to be ripened at room temperature, then stored under refrigeration. They bruise easily, so handle them carefully and check displays for damaged fruit. Choose Hass avocados based on colour – bright green are not ripe, olive green will be ripe in 2-3 days, brown/green are firm ripe and purple/brown are soft ripe. Reed avocados are ready when the stem yields to gentle pressure. Nutrition: Avocados contain good sources of vitamin E, and dietary fibre which supports digestive health, vitamin B6 which is essential for healthy metabolism and folate to help fight fatigue.

Join us on

www.unitedfresh.co.nz

[ cover story ]

HELLERS DONATES ITS TWO MILLIONTH SNAG!

The Sausages for Schools programme Hellers started a decade ago has hit $4million raised for schools across New Zealand.

Hellers’ Sausages for Schools programme has hit a major milestone when the two millionth sausage was eaten at a Pukekohe Intermediate fundraiser on September 28. The Sausages for Schools programme Hellers started a decade ago has hit $4million raised for schools across the country. After a long hiatus due to Covid lockdowns and restrictions, the programme is back and building up again in preparation for the busy summer BBQ season. To visualise two million sausages, it’s equivalent to about 220 kilometres, if they were linked up end to end. That’s like 2,200 rugby fields, over two Cook Straits or the distance from Auckland to Rotorua! Primary and Intermediate schools can apply to Hellers, outlining their particular funding need. This could be anything from new equipment for camps, uniforms or rebuilding and upgrading environments. If Hellers can meet their needs they will supply sausages for the school’s sausage sizzle free of charge, which the schools then sell for $2 each. The Pukekohe Intermediate fundraiser was held on Wednesday 28th September, where the community fundraised for heating and tables for their breakfast club’s outside dining area. Hellers frontman, comedian

and television presenter Leigh Hart attended to mark the occasion. The fundraiser is one of over 3,000 that has benefited from assistance from Hellers since it started in 2012. On average over 300 fundraisers are supported every year by Hellers, or 30 schools a month. Hellers Chief Executive Christine Cash said it was wonderful to get the programme going again after such a long break. “We are really proud to mark this major milestone as the Sausages for Schools programme kicks back into action. It will be in full swing by the time summer arrives, and we look forward to providing many more sausages in future for these important community events. “Hellers would like to thank Foodstuffs for their support of the Sausages for Schools programme. By being the sausage pickup point for schools, the supermarket chain makes a huge difference to kids all over the country, who directly benefit from the fundraisers. “We couldn’t do it without the help of our partners at Foodstuffs.” she said. If your local school is needing to fundraise jump online at www.hellers.co.nz and apply for sausages for your next fundraising event.

“WE ARE REALLY PROUD TO MARK THIS MAJOR MILESTONE AS THE SAUSAGES FOR SCHOOLS PROGRAMME KICKS BACK INTO ACTION” - HELLERS CHIEF EXECUTIVE CHRISTINE CASH

FMCG BUSINESS - OCTOBER 2022

SUGAR FREE INNOVATIONS Exciting, new sugar free products are arriving in New Zealand stores.

Passionate about Sugar Free Beverages Kiwi Beverages Sugar-Free are experts in sugar-free and low-sugar beverages. The 100 percent New Zealand owned and operated company, located on Hunua Road in Auckland are taking the category by storm with their range of beverages. Amanda Morgan, Managing Director says they are driven by a passion to make great-tasting sugar-free and low-sugar beverages. “It’s all we make in our factory! We’re leading the category in regards to the fact that we don’t produce any beverages with sugar in them. Making sugar-free and low-sugar beverages is all we do and it’s what we’re good at. “In our range, we have Frutee Sparkling Fruit Drink, which is a sugarfree crowd-pleaser for all ages. “We’ve also developed the first 100% sugar-free Fruit Drink in the industry, Kiwi Sunshine and we’ve brought back Rio Gold and Dirty Dog Energy which were popular in the ‘90s under Rio Beverages, although now they contain less sugar. “We often receive emails and messages from satisfied customers who are very pleased to have found our drinks and they always mention how full of flavour our drinks are. “In New Zealand, we have an alarmingly high and rising rate of sugar consumption – in particular through beverages. The domination of sugary food and drinks in New Zealand is a growing problem, with increasing rates of obesity, diabetes and tooth decay in children and adults. “We’re very proud of what we’re making and as more and more consumers look to reduce their sugar intake our beverages are a great option. We hope they’re choosing something from our range, as we do have a sugar-free or low-sugar beverage for every Kiwi,” says Amanda. Kiwi Beverages Sugar-Free supplies the following brands to New Zealand supermarkets: • Frutee 330ml - 100% sugar-free sparkling Fruit Drink Frutee is a 100% sugar-free sparkling fruit drink, not to be confused with a lightly flavoured sparkling water. Frutee is the perfect grab-and-go drink from the chiller or can be ambient too. There are six delicious flavours: Strawberries & Cream, Orange Mango Tango, Lime & Passion, Extraordinary Orange, Lemon Delight and Berrylicious. • Kiwi Sunshine 2L or 375ml - 100% sugarfree Fruit Drink Kiwi Sunshine is an innovation in the drinks category - a 100% sugar-free fruit drink! It’s Sunshine in a bottle - Kiwi Style! Available in 12

FMCG BUSINESS - OCTOBER 2022

2L and 375ml in a range of delicious flavours such as Pink Lemonade and Orange Pineapple. •R io Gold 1L or 375ml - 70% less Sugar Fruit Drink Rio Gold is Kiwi Beverages’ low-sugar option. It is sweetened with natural Stevia and contains no artificial flavours or additives. It delivers the flavours you love, but with 70% less sugar than regular fruit juice. Rio Gold is available in four great flavours in 1L or 375ml options: Apple Feijoa, Apple Blackcurrant, Orange Passionfruit and Orange Mango. To ensure Frutee, Kiwi Sunshine or Rio Gold are in your drinks chiller or beverage aisle ahead of summer email sales@kiwibeverages.co.nz for more info and a price list.

Radiance Sugar Free Gummies Gummies continue to the drive supplement market share and Radiance 100% Sugar Free Gummies contributes to drive strong consumer demand, says Senior Brand Manager, Johanna Baikie. For those consumers finding it difficult to swallow pills or who may have pill fatigue, (don’t like taking pills), the delivery format of a Gummie is a much more favourable alternative and a lot more convenient to take. Baikie explains: “The availability of flavours, colours, and attractive shapes has helped make gummies a more convenient delivery format particularly for children, who are reluctant to consume supplements in other forms. “Gummies taste better than traditional supplements, they are chewable and eliminate the difficulties associated with swallowing large tablets or capsules, which can be particularly problematic for children and those people that just can’t take tablets. A gummie version of a vitamin or dietary supplement makes people feel as though they’re not taking too many pills. “Radiance Gummies hold the lion share of our Radiance portfolio, offering a strong mix of essential immune boosters, or nutrients for everyday wellbeing, for both adults and children and all our Gummies are 99% sugar free. Radiance Gummies continue to achieve strong double-digit growth

[ sugar free ] in both Total Key Accounts and the Pharmacy channels, +75% Dollar Growth against YA* with key stand out SKUs across the Adult and Children’s categories, the Multi Vitamin, Vit C and Probiotic. “We pride ourselves with our extensive and growing Radiance portfolio. We offer Gummies in categories such as Beauty (Collagen & Hair, Skin & Nail Gummies), Stress, Sleep (Ashwagandha & Dream Sleep Gummies), Digestion (Probiotic Gummies), Bone & Joint (Turmeric Gummies) to key immune boosters (Vitamin C & Zinc, Multi Vitamin Gummies). “Using premium quality ingredients, we’re researching and developing world-leading support formulas that help New Zealanders feel better inside and out. We are not only doing things better when it comes to natural health but are looking out for the health of the planet too. Our Gummies are in the distinctive and sustainable, re-usable tins and have put in place a carbon credit system supporting eco-friendly projects in NZ,” says Baikie.

“With no aspartame, no preservatives and no phosphoric acid - we use natural flavours, real juice (in the Lemon and Orange) and in our Cola the caffeine is natural from green coffee beans. Very low in calories and carbs, our soft drinks are a guilt free alternative to a regular soft drink! “Our delicious soft drinks come in Cola, Lemon-Lime, Lemon (made with real lemon juice) and Orange (made with real orange juice). Available now in selected The Warehouse, SuperValue, Fresh Choice, New World and PAK’nSAVE stores. Contact: Sarah Alexander, General Manager sarah@greenroombrands.co.nz, ph 027 447 2033 or check out www.greencola.nz

Source: (IRI: MAT: dollar growth 21/8/2022)

Green – a natural and sugar free range Green is a sugar free, natural, carbonated soft drink created to offer people the opportunity to enjoy the great taste of a soft drink, but without the guilt! General Manager Sarah Alexander explains:

radiance.co.nz

99% Sugar Free

Gummies

Made with you, your family, and our earth in mind. Radiance 100% reusable and recycle aluminium packaging.

[ IRI ]

THE SUGAR-FREE SWEET SPOT

Sarah Ensor, Senior Insights Analyst, IRI New Zealand

The pandemic has intensified New Zealand consumers’ focus on wellbeing, dramatically impacting what they put in their shopping baskets. With IRI data showing 94% of Kiwis prioritise their health, and one in four follow a low sugar diet1, suppliers are stepping up to deliver delicious, nutritious food – without a side of guilt. Throughout the grocery channel, products with low or no sugar callouts on pack have enjoyed a sales jump of 23% in the past year, which is nearly three times the growth of total pre-packaged goods. One of the keys to this trend is delivering treat foods which are low in sugar. Beverages are a clear example of this, with ‘no/low sugar’ options up 16.2% in dollar growth, accounting for 47% of total dollar gains across the entire cold beverage category. Sugar-free options in both carbonated soft drinks and energy drinks categories are growing at 7.9% – twice the rate of their calorific counterparts. This is a real win for manufacturers such as Coca-Cola Amatil New Zealand, who is committed to reducing its sugar content 20% by 2025. Similarly, confectionary manufacturers are benefitting from pivoting into the sugar-free domain. Low and no sugar offerings in chocolate and lollies are worth $10m and growing at 7.8%, with brands such as Mentos and Chupa Chups driving the

lift in the category. The reduced-sugar range from The Natural Confectionery Co. – featuring Kiwi favourites including snakes and share packs – is in growth 17.8% compared to 12 months ago. Where sugar reduction and indulgence are combined with other health benefits, so much the better, as seen with the burgeoning success of functional foods. Health, sports and slimming snacks represent 16% of the nutritional snacks category but contribute 47% to value growth. There is something for everyone in these segments, with Musashi (+62.8%) and Atkins Indulge (+27.2%) sports bars offering low sugar, high protein on-the-go sweet treats in indulgent flavours such as chocolate and salted caramel. Tom & Luke have collaborated with Dose & Co to create Snackaballs, a refined sugar-free bar with a shot of collagen that is in growth 138%, while for the kids, Noshu have launched sugar-free Snackle Bars. With 36% of Kiwis eating more nutrient dense foods1, the trend continues in breakfast cereals, a segment commonly associated with high sugar content. New Zealanders care as much about what’s in their food as what’s not, and cereal manufacturers are responding to this, calling out added benefits as well as removing sugar. Although traditional breakfast cereals grew 6.4% last year, those which meet multiple needs are soaring way above the pack. The largest and fastest growing brand is Hubbards’ BeMighty, with low GI, high fibre and less than 3.8g of sugar per serve, is up 205% in value growth compared to 12 months ago. Low sugar Blue Frog Probiotic Porridges are enjoying 19% unit growth, while Sanitarium Light ‘n’ Tasty Blueberry, which boasts 25% less sugar, immune support and enhanced gut health, is in four-digit value growth on a year ago. Healthy eating is increasingly a way of life for New Zealanders, but we still love our sweet treats and don’t want to sacrifice taste for good health. It is heartening to see so many manufacturers recognising this, offering options that fulfil both emotional and dietary needs, and adding some much-appreciated sweetness to Kiwi life! IRI NZ Health & Wellness Survey May 2021, n=1000. Powered by Yabble IRI MarketEdge Data, MAT to 07/08/2022

“PRODUCTS WITH LOW OR NO SUGAR CALLOUTS ON PACK HAVE ENJOYED A SALES JUMP OF 23% IN THE PAST YEAR.” 14

FMCG BUSINESS - OCTOBER 2022

Perfection wrapped in perfection

‘Viking size’ Isey Skyr lands in NZ After the success of their 170g range, strong sales and positive feedback from trade, Isey Skyr is expanding their delicious Icelandic skyr in to 500g ‘Viking size’ tubs. Isey Skyr 500g tubs are available to supermarkets nationwide in six delicious and unique flavours. For more information visit www.iseyskyr.co.nz or contact Surge SMC on 0800 949 333.

Whittaker’s new Hazella is an indulgent treat featuring a silky-smooth hazelnut gianduja centre encased in Whittaker’s classic 33% cocoa Creamy Milk chocolate. Like Whittaker’s entire range, Hazella is proudly palm oil-free thanks to state-of-the-art technology, which perfectly blends the hazelnut gianduja so that no palm oil is required to stabilise it. www.whittakers.co.nz

Tampons as they should be At last, tampons as they should be! Introducing Crimson Organic tampons: safe, ethical, and feminine. 100% Pure certified organic cotton tampons. Safer for women and better for the environment. vicki@crimsonorganic.co.nz www.crimsonorganic.co.nz 027 575 4150

Good Health Changes Everything New Blackmores Sustained Release Multivitamin Range now available! With new technology to gradually release key nutrients throughout the day to support energy and immune health. This wide range of Multivitamins includes Women’s, Men’s and 50+ formulations to help you get the most out of your day. blackmoresnz.co.nz or 0508 757 473

Fence-sitters will go nuts for Smunchy The perfect in-between of two purebred Pic’s spreads, Smooth and Crunchy, Pic’s ‘Smunchy’ is proof that we can have our cake and eat it too. Like all Pic’s peanut butters, Smunchy is fresh roasted and packaged in Nelson using power from the sun and better yet, 50 cents from every jar will be donated to KidsCan. https://picspeanutbutter.nz/products/ smunchy-380g FMCG BUSINESS - OCTOBER 2022

[ profile ]

IMAGINE | BELIEVE | ACHIEVE Founded in 2009, ANZ Pharma is a leading health, beauty, pharmaceutical, and household wholesaler & distributor within the New Zealand market, across multiple channels and customers. Proudly locally owned and operated, we also offer an extensive range of services such as key account management, field sales execution, customer services, 4PL supply chain warehousing, and distribution solutions. Our supplier partners benefit from the extensive experience and pre-existing professional business relationships and trust we have with all our major retail partners in the New Zealand market. We have intelligent business systems and processes with the latest technology to support our end-to-end operations which are available to our clients and supplier partners. We work collaboratively with our supplier partners to build brand distribution, in-store visibility, and execution of promotional initiatives. We are proud to represent market-leading brands such as Bondi Sands, Mustela, White GLO, Melrose Health, and Arizona Iced Tea in the NZ market.

To find out more about how ANZ Pharma can add value to your business, please contact us at sales@anzpharma.co.nz or phone: 09 579 2550

[ sponsored ]

GILMOURS NAMED 2022 RETAIL EMPLOYER OF THE YEAR FOR 2ND YEAR IN A ROW Gilmours, a 100% New Zealand Owned and Operated Wholesaler, were announced as the winner of the Medium Category at the 2022 Retail Employer of the Year Awards for the 2nd year running. Retailworld’s annual Retail Employer of the Year Awards recognises retail businesses that embrace, promote and have outstanding employer branding. Key contributors and judging criteria include leave policy, leadership style, work-life balance, employee retention, business culture and training and development. On their win, Gilmours noted: “a big thank you goes out to the entire team across our seven stores and Support Centre – each of whom play a key role in making Gilmours a business we are all proud to be a part of. We’d also like to thank our valued customers, suppliers and all those who voted for us. Your ongoing support is appreciated.” It was celebrations all round for Foodstuffs North Island, with the Co-op of which Gilmours is a part of announced as winners of the Large Category. Gilmours will be attending the C&I Expo on Wednesday 19 and Thursday 20 October at The Cloud in Auckland. 16

FMCG BUSINESS - OCTOBER 2022

A locally owned and operated independent beverage company based in Hawke’s Bay. With a vast portfolio of brands, bringing a range of products to the market, all manufactured onsite. We are dedicated to making quality, cost effective, innovative and environmentally friendly beverages. Pixies - NZ’s first flavoured oat milk in a can Environmentally friendly Oat Milk for the next generation of dreamers. Made in New Zealand using Kiwi oats. Pixie’s oat milk is packaged in aluminium cans which are the most sustainable beverage option. They come in four delicious flavours, Chocolate, (using REAL cocoa!) Strawberry, Salted Caramel and Vanilla coming soon. @pixies_nz on socials pixies.nz

Hop Pop - Good for your gut, good for you! Hop Pop is a raw, natural probiotic soda. We had a surplus of beer that needed to be disposed of, but we didn’t want all those hops to go to waste. So we fermented it to create a soda – and called it Hop Pop. The result is a wonderfully healthy, delicious, non alcoholic probiotic soda. @drink_hoppop on socials hoppop.co.nz

Biotic Soda - Brilliant, Bubbly Biotics Our uniquely formulated Biotic Soda, has both Pre and Probiotics, vital for building and maintaining a healthy gut. We use our Whole ACV as the base, expertly crafted into three delicious natural flavours, Raspberry Lemonade, Kiwifruit & Lime and Mandarin. Our biotic soda’s are sugar free, raw, unfiltered and unpasteurised to maintain the good gut health bacteria! They come in two sizes 750 ml and 330 ml. @parkersbevco on socials parkers.kiwi

Sparkling Peach Iced Tea - FRESH, FRUITY, BUBBLY Delicious Sparkling Peach Iced Tea. Made with natural black tea for that classic iced tea flavour everyone loves. With no added sugar, artificial colours or flavours, only the good stuff! Each can is packed full of deliciousness. The perfect drink to share with friends and family; it’s the drink of the season! @parkersbevco on socials parkers.kiwi

Whole ACV - Whole-ly Moly! Whole Apple Cider Vinegar PARKERS Whole ACV is the Rolls-Royce of ACV. Our specialty batch is made by milling whole apples. This gives you the nutritional benefits of a whole apple, including both Pre and Probiotics. Our Whole ACV is much higher in fibre, pectin and potassium than traditional ACV’s. A naturally formulated, cold pressed, raw ACV made with the ‘mother’. @parkers_acv

Contact for all products: drinks@parkers.kiwi, 020 4107 1104 FMCG BUSINESS - OCTOBER 2022

[ profile ]

OVER 30 YEARS BAKING THE BEST GLUTEN, WHEAT, DAIRY, AND EGG FREE COOKIES IN NZ Kea Cookies® is celebrating three decades trailblazing the free from and vegan food categories. Baking delicious, traditional homestyle cookies free from gluten, wheat, dairy, and egg in New Zealand since 1988. The recipe for their longevity and success is great ingredients, relentless quality control, and amazing flavours that make it hard to believe they are gluten, wheat, dairy, and egg free. “Kea Cookies® is the favourite branded gluten free sweet biscuit in New Zealand*,” says co-owner Andrew Hardie. Kea Cookies® is a family business based in New Zealand, now owned and operated by Andrew Hardie and John Xanthopol, who are involved in all processes from new product development to packing. They monitor every batch to guarantee the best quality and fresh-made feel. To provide the most delicious and safest cookies for vegans and for those allergic to gluten, wheat, dairy and eggs, Kea Cookies® follows a strict safety programme with annual audits and all required certifications. The range is approved by Coeliac New Zealand with the Crossed Grain

logo on packaging. Kea Cookies® ensures all suppliers have relevant food safety programmes and certification. The cookies come in 10 flavours, all suitable for vegans: Choc Chip, Double Choc Chip, Macadamia, Lemon Coconut, Hokey Pokey, Gingernut, Vanilla, Almond, Peanut Brownie and Coconut. They are great for lunch boxes, to pair with a cup of tea or coffee, or as a quick snack. Kea Cookies® have recently launched Vanilla Cookie Crumb – ideal to crumble over ice cream, or use as a cheesecake base. Packed in sizes to suit with more flavours to come. Kea Cookies® come in twin packs for individual serves, through to 250g packs for retail, and 1kg bulk packs for larger format stores – with very competitive prices and good margins for the free from food category, without compromising quality and flavour. For more product information contact Kea Cookies on 0800KEACOOKIES (0800532266) or info@keacookies.co.nz *Source IRI MAT to August 2022

[ profile ]

FORTUNE FLAVOURS THE BOLD: HI-CHEW LAUNCHES EXCITING NEW FLAVOURS From humble beginnings as a small company selling sweets from a pushcart in Japan in 1899, Morinaga & Co., Ltd proudly stands today as the largest confectionery manufacturer in Asia. Since launching its Hi-Chew fruit chews in New Zealand in collaboration with exclusive NZ distributor, Tokyo Food Co., Ltd., sales have grown exponentially and the sweets can now be found at all major supermarkets and retailers nationwide. This spring, Hi-Chew is excited to launch Superfruit Mix and PlusFruit Mix in New Zealand, which are sure to satisfy any sweet tooth. After experiencing a smash-hit success with American consumers, Superfruit Mix has finally arrived and features a delicious range of tangy, tropical flavours: Dragon Fruit, Acai and Passionfruit. 18

FMCG BUSINESS - OCTOBER 2022

Each sweet treat packs a punch of real fruit flavour with every bite. PlusFruit Mix offers a unique blend of two exciting flavours: Orange & Tangerine and Red Apple & Strawberry with the added fun of REAL fruit pieces inside - a first in Hi-Chew’s innovative candy-making history. Both of the new Hi-Chew mix bags are rolling out to leading supermarkets and retailers in the North Island and will be available in the South Island from November. This month, Kiwi Hi-Chew fans can also look forward to the Hi-Chew Monster Mix Halloween Share Pack featuring classic flavours hidden behind spooky masks – the perfect treat for the scariest night of the year! For more information, please contact Tokyo Food’s Retail Manager - Mark Whiteman, info@tokyofood.co.nz

So Good, So Fruity

PlusFruit Mix Real fruit pieces bring a vibrant taste sensation. Orange & Tangerine and Red Apple & Strawberry

SuperFruit Mix Filled with the tropical, citrusy flavours of Dragon Fruit, Acai and Passion Fruit.

ROLLING OUT NATIONWIDE For more information or to become a stockist, contact Tokyo Food Co Ltd

info@tokyofood.co.nz

www.hichew.co.nz www.hichew.co.nz

TO ALL STORES NATIONWIDE

info@tokyofood.co.nz

CREEPIN G OUT Lorem Ipsum

Limited Edition Hi-Chew Monster Mix Exclusive to New Zealand 250g of mystery flavours

So Good, It’s Scary!

[ sponsored ]

NEW ARRIVALS IN THE HEALTH & BEAUTY AISLE 91% of Kiwi women worry about the physical effects of ageing on their skin*. That’s why essano, NZ’s no.1 natural skincare brand**, has developed a new range to address the most pressing skin concerns for women aged 50+. The NEW Visible Repair range features clinically proven formulas that are naturally designed for mature skin, says Brand Manager Rachelle Wills. The essano’s Visible Repair range launches to market with four hero products; Day Cream, Night Cream and Eye Cream plus the star of the range, the Facial Elixir. The Elixir is a powerful oil-based formulation that is packed full of ingredients to reduce signs of ageing – it is proven to reduce wrinkle depth in 4 weeks and increase skin firmness in just 2 weeks!^ Using independent testing methods with real women aged 50+, each product in the Visible Repair range is clinically proven to deliver a range of results from instant and long-lasting hydration, to reduction of depth and degree of wrinkles, to improving skin firmness and appearance within 2 to 4 weeks. Lapagyl™ is an advanced botanical ingredient and is the hero ingredient in the Visible Repair range. It is proven to promote a slower aging process and increased skin longevity, leading to a radiant, firmer

and younger appearance. Lapagyl™ is sourced from the Lapacho tree known as the “tree of life” for its revered for its healing properties. essano™ Visible Repair is available nationwide from Countdown, New World, PAK’n’SAVE, Bargain Chemist and online at www.essano.co.nz *Results garnered from a survey done on 500 NZ women 50 + in April 2022 ** Source IRI [CHANNEL: NZ Grocery, MEASURE: $ sales (local currency), TIME: MAT 16/01/22] ^Independent clinical study on 20 women aged 50 and over

[ profile ]

AWARD WINNING ONLY GOOD®! Only Good® is 100% good inside and out, and now is award winning too! Only Good is proud to have been crowned the winner of Best in Natural 2022 - Body Wash, Soap & Scrub category, for its CALM Natural Body Wash. “We are so honoured to have been recognised for our commitment to being 100% natural, New Zealand made and for our stance on maintaining our ethical standards, while never substituting on quality. “We are committed and excited to further develop the range, bringing new life to a much-loved brand. Consumers are demanding full transparency when it comes to sustainability and we plan to be the market leader demonstrating that behaviour,” says Tatum Dunster Apex Brands Sales and Marketing Manager. “Only Good continues to care about what you use on your skin, and the impact on the environment too. Only Good is 100% naturally 20

FMCG BUSINESS - OCTOBER 2022

derived, 100% palm oil free and never ever tested on animals. “It proudly uses plant-based botanicals and heavenly scented fruit & plant extracts to gently cleanse, soothe and nurture your skin. “Powerhouse skin-care ingredients such as Vitamin C, E and Organic Aloe Vera feed skin with a bounty of antioxidants, reducing inflammation and protecting the skins barrier.” Only Good is proudly free from: • Parabens • Petrochemicals • PEGS • EDTA • Silicones • Harsh detergents & sulphates • GMOS Embrace a kinder way of caring for your skin with Only Good. 100% Good Inside & Out. For trade enquiries or more information contact tatum@apexbrands.co.nz www.onlygood.co.nz @onlygoodnz

And now we’re award winning too

onlygood.co.nz |



onlygoodnz

ORGANIC, NATURAL & PLANTBASED FOODS A quick snapshot of new products trending right now. The first organic oat m!lk, made from New Zealand oats, to hit supermarket shelves is grown using minimal inputs and with three simple ingredients (oats, water and salt). It was created to appeal to the growing number of consumers who value looking after their health while looking after the environment. Company co-founder Tim Ryan says: “To make this happen we worked closely with experienced organic oat farmers, Allan Richardson from Avalon farms in West Otago and Johnny Wheeler from Lilybank Station, at the head of Lake Tekapo, to help educate us on ways in which we could viably grow light touch oat crops, that still yielded well and produced a full nutritious mi!k.” Otis also completely redesigned its oat milk production and enzymatic processes to meet international organic standards. “For us it was crucial, however, that in doing so we retained the Otis taste people love and the beta-glucan fibre - a soluble fibre from the grain, which helps the body maintain stable cholesterol levels,” says Ryan. The result is a creamy, nutritious oat mi!k, grown in step with nature and in some of the most picturesque farmland New Zealand has to offer. 22

FMCG BUSINESS - OCTOBER 2022

[ feature ] Otis Oat M!lk - The Organic One tastes great in a cup of tea, smoothies, cereal or on its own. It will sit alongside the brand’s Everyday, Barista and Chocolate products (RRP $6.00). For enquiries please contact Finn on 0274248496 or finn@otisoatmilk.co.nz. For further information visit www.otisoatmilk.co.nz.

The New Premium Yeast Spread - allmite gold It was during Covid Lockdown late last year when the idea to create and launch allmite gold was born. “We were feeling a restless energy that I think a lot of Kiwi’s were feeling,” cofounder Shannon Kelly said. Along with co-founder Laura Fisher, they wanted to create a type of innovative and delicious yeast spread that research showed was missing from the breakfast line up. Shannon began developing the product recipe and the business model while Laura created the brand design and marketing strategy. Their first product, allmite gold yeast spread 330g, is a premium yeast spread made with a tahini base and with added turmeric and apple cider vinegar to boost its nutritional value even further. Since launching in May this year, the MiteyCo team has been selling allmite gold at local farmers markets around Auckland and online with order coming from across New Zealand and as far away at NYC. The team has been rapt with the response from both customers and retailers with sales growing consistently each week. The journey has been both fun and challenging, with being selected as a finalist in the NZ Food Awards 2022 a real highlight. Their goal is for MiteyCo is to be known as the small but mighty company, and the vision for allmite gold is to be the #1 premium yeast spread in New Zealand. “We want to be a part of Kiwi’s breakfast spreads repertoire and help elevate the at-home breakfast experience.”, says Laura. For sales enquiries contact the team at hello@miteyco.com and for more information visit www.allmitegold.co.nz

The new, premium yeast spread

elevate breakfast nutritional yeast in a tahini base added turmeric vegan friendly

Shannon Kelly and Laura Fisher

“ALLMITE GOLD YEAST SPREAD IS A NUTRITIONAL YEAST SPREAD MADE WITH A TAHINI BASE AND ADDED TURMERIC.”

made in Aotearoa, New Zealand instagram: @allmitegold allmitegold.co.nz

FMCG BUSINESS - OCTOBER 2022

FISH & SEAFOOD Sanford’s laser innovation is making the cut at Foodstuffs North Island serve overs. Brett Sellers, Seafood Operations Manager at Foodstuffs North Island explains: “we’re extremely privileged to partner with some amazing fishers, and we’re constantly working together to bring innovations to deliver on our customer driven focus. “We recently worked with Sanford, who are the largest and oldest fishing and aquaculture company in New Zealand, to solve a customer barrier to using our instore fish serve overs. We were finding some customers weren’t using this service because they wanted to be more certain of the price and weight of the fish prior to placing an order at the serve over. “Sanford’s have helped solve this challenge at their processing facility in Bluff. They’ve introduced a laser that maps out a fillet on their premium Big Glory Bay Salmon, (a Chinook King Salmon, regarded as the finest eating quality species in the world) and cuts a fillet to an exact 180-gram size specification using a high-pressure water jet. The machine is also able to remove the row of bones in the centre of the fillet, which means we can guarantee that the fish is boneless. The result is premium boneless portions that are all the same weight and able to be retailed at an ‘each’ price, rather than variable weight per kilogram price.” Sellers says: “Sanford’s innovative technology of producing 180-gram fillets takes away the uncertainty around size and cost and provides our customers with the correct number of pieces to entertain guests, or feed their family with some of the best salmon available in the world, as well as the benefit of buying at the serve over where they get consistent friendly service and advice on their fresh fish from a real live in-store expert!” 24

FMCG BUSINESS - OCTOBER 2022

East Rock Crayfish on the menu East Rock, which is part of Gisborne Fisheries, is the culmination of four generation’s experience of fishing the East Coast. A key focus for East Rock is offering seafood to consumers in convenient formats. This summer they are putting crayfish on the menu for Kiwis to enjoy on their terms. Marketing Director Hayden Dingle explains: “Our crayfish product has come about from absorbing some market insights and thinking differently about what consumers are looking for while they spend more time at home or the bach over summer. “NZ crayfish are mostly exported and not widely available domestically, so it’s unique to have a branded crayfish offer on the local market in a format that makes it easy for people to serve at home when they want it”. “In New Zealand people can harvest crayfish themselves or might have a mate that drops a couple their way after a successful trip, which is awesome. For those not so lucky, we aim to make it easy and convenient for them to be able to access and cook crayfish when it suits them.” East Rock’s crayfish are harvested between East Cape and Mahia, then snap frozen to ensure they are delivered wharf side fresh. They are packed into cartons for individual purchase, which can be stored in the freezer awaiting the right occasion. On pack are simple cooking instructions that mean a crayfish can go from the freezer to the lunch or dinner table in less than 30 minutes. Available from around November in Farro Fresh, as well as selected New World, Fresh Choice, Super Value and Moore Wilson’s stores. For more information contact info@eastrock.co.nz or visit www.eastrock.co.nz

[ category insights ] John West leads sustainability charge Shelf seafood products are trusted staples in most household pantries across New Zealand. The category offers an affordable, healthy protein option for consumers to enjoy in a range of ways. “With all segments within the Shelf seafood category, Tuna, Salmon and Specialty Fish, contributing to overall category growth of 2.9% latest year, we know New Zealanders are still enjoying shelf seafood in their meals,” says Natasha Cook, Brand Manager for John West NZ. One issue that this category cannot afford to ignore, however, is sustainability - and leading that charge is John West. “With 18.3% market share, John West is a key brand in the category, however when it comes to sustainability, we take on a leadership role,” says Cook. “John West was the first brand in the world to shift to using 100% Marine Stewardship Council certified sustainable seafood in its range,” says Cook. “If you are concerned about sustainable fishing, one of the most responsible things you can do is ensure that you are purchasing MSC responsibly sourced tuna, which you can identify by the blue MSC tick on the can. “Alongside sustainability, offering consumers new convenient ways to enjoy seafood is also top of our priorities to attract new users to the category. That is why we have recently launched John West Protein+ bowls into the market. “The bowls are ideal for busy on-the-go consumers with each variant calling out specific functional nutrients (Vitamin E, Vitamin B12) on pack. The packaging is fully recyclable and have the blue MSC Tick,” says Cook.

“JOHN WEST NZ (ALONG WITH JOHN WEST AUSTRALIA) WAS THE FIRST BRAND IN THE WORLD TO SHIFT TO USING 100% MARINE STEWARDSHIP COUNCIL CERTIFIED FOR ALL SKIPJACK TUNA PRODUCTS WITHIN OUR CANNED RANGE.” FISH & SEAFOOD Dollars (000s)

Dollars Growth % YA

Total Fish & Seafood

$372,889

8.0%

Chilled Salmon*

$80,261

8.7%

Canned Tuna

$74,078

0.3%

Frozen Fish Fillets*

$50,888

12.9%

Frozen Prawns/Shrimp*

$49,465

6.3%

Chilled Other Seafood

$38,398

42.1%

Frozen Seafood Other*

$17,889

12.2%

Canned Salmon

$16,864

1.4%

Frozen Fish Fingers/Cakes

$12,543

4.0%

Chilled Mussels

$12,337

6.6%

Canned Fish Other

$9,490

2.1%

Canned Sardines

$6,467

4.7%

Frozen Fish Other

$4,210

-42.6%

* denotes value AND unit growth > +2%

(Nielsen ScanTrack MAT to 31/7/2022)

For further information go to: Johnwest.co.nz

Source : IRI Market Edge Grocery MAT to 04/09/22 (Selected segments)

The FMCG Business team endeavours to produce a monthly snapshot of category news and highlights, based on information from participating clients, plus a table of the freshest data available at time of print. If you wish to contribute news for upcoming category reports, please contact trubanowski@fmcgbusiness.co.nz FMCG BUSINESS - OCTOBER 2022

From left: Brent Snaddon – National Business Development Manager (Frucor Suntory), Michael Redman – CEO (Mariposa Restaurant Holdings), Cara Hutson – Marketing Manager (Mariposa Restaurant Holdings), Justin Ramsay – Head of On The Go (Frucor Suntory), Kim Clark – Senior Brand Manager (Frucor Suntory), Nigel Saunders – National Business Manager (Frucor Suntory).

MARIPOSA RESTAURANT HOLDINGS PARTNERS WITH FRUCOR SUNTORY The momentum of Pepsi in the Quick Service Restaurant (QSR) channel continues to accelerate across the New Zealand market. Mariposa Restaurant Holdings which includes flagship brands like Mexicali, Burger Wisconsin and Taco Joint will commence a new partnership with Frucor Suntory in October 2022. For 17 years Mariposa Restaurant Holdings has developed a thriving franchise network, offering fresh and authentic food to loyal and engaged customers throughout the country, becoming the perfect partner for Frucor Suntory, who have a long history of bringing great tasting beverages for the Oceania market. Mariposa strives to support its franchise operators as they grow their businesses and they are now able to take them to the next stage of the journey by becoming the latest restaurant chain to collaborate under 26

FMCG BUSINESS - OCTOBER 2022

the #BetterWithPepsi campaign. The Pepsi branding will now lead the beverage offering across the current and future Mariposa Restaurants Holdings sites. Michael Redman, CEO, Mariposa Restaurant Holdings said Frucor Suntory was appointed after a comprehensive and competitive beverage category review. “Frucor Suntory responded with a compelling business case that will deliver benefits to our customers and franchisees. Offering our customers a choice of trusted beverage brands and price options matched to our menus is critical to our sustained competitiveness.” “This partnership goes beyond just product supply, Frucor Suntory is also able to provide marketing, insights and systems support that are aligned with our business needs and brand values,” concluded Redman.

[ profile ]

“THIS PARTNERSHIP GOES BEYOND JUST PRODUCT SUPPLY, FRUCOR SUNTORY IS ALSO ABLE TO PROVIDE MARKETING, INSIGHTS AND SYSTEMS SUPPORT THAT ARE ALIGNED WITH OUR BUSINESS NEEDS AND BRAND VALUES”

Frucor Suntory continues to strengthen its brands domestically through great partnerships, driving incidence through its fit for purpose portfolio which enables customers to select trusted brands and pack sizes that meet the demands of the changing meal occasion throughout the day. Justin Ramsay, Head of On the Go, Frucor Suntory, commented on the new partnership and said: “Our ability to leverage and combine local insights, agility and talent, with global expertise, is what sets us apart. When we partner with our customers it’s not just about getting beverages from the warehouse to their stores, it’s about working with them to deeply

understand their offer, occasion and consumer and offer curated marketing support to drive beverage incidence. “We can drive engagement and loyalty across all media channels such as online, app, and third-party delivery models all illustrated through eye catching and engaging path to purchase experiences in-store. “We’re excited to partner with Mariposa Restaurant Holdings. They share our passion for great brands, supporting their people and sustainability,” said Ramsay. “Be on the lookout for the #BetterWithPepsi campaign next time you’re eating at Burger Wisconsin or Mexicali from October.”

About Frucor Suntory Since its beginnings in the early 1960s as part of the New Zealand Apple & Pear Board, Frucor Suntory has evolved from a small local juice business to a significant international beverages company. The company produces more than 20 million cases of drinks a year at its South Auckland manufacturing plant. Frucor Suntory manufactures, markets and distributes a range of fruit juices, fruit drinks, energy drinks, waters and soft drinks. It is the company behind iconic brands V, h2go, Just Juice, Fresh Up, Maximus and Simply Squeezed. The company currently employs 1,000 people across Australia and New Zealand. Since 2009 Frucor Suntory has been wholly owned by leading Japanese beverage and food company Suntory.

FMCG BUSINESS - OCTOBER 2022

WE LOVE ICE CREAM! Locally made ice creams, award-winning gelatos and plant-based options are popular. Kiwis love to treat themselves to ice cream at home and there’s no sign of that love slowing down anytime soon says Countdown’s Category Manager for ice cream, frozen fruit, desserts and baking, Katrina de Witte. “At the moment we are seeing lots of growth in our multipack offering, particularly with our more premium offers. Brands like Magnum, Trumpet and Kapiti are real customer favourites. “While tubs are definitely still a top pick, Kiwis are more and more drawn to multipacks and we’re seeing strong momentum in the bite-sized desserts category as well. Products like Yukimi, Nom, Ben & Jerrys Pieces, and Magnum Bites are finding their way into more trolleys. “As we have noticed in many other categories, we’re seeing customers looking for more plant-based options in the dessert and ice cream aisle. Kapiti’s plant-based multipack and tub options have taken off with customers and across all brands, we’re seeing very good growth,” says de Witte. As the NZ Ice Cream & Gelato Awards celebrated 25 years, a gelato was named Supreme Boutique Champion – Auckland artisan gelato maker Little ‘Lato was named Formula Foods Supreme Boutique Champion for their Speculoos Gelato as well as collecting the Sensient Technologies Champion Gelato Award. Judges were full of praise for the Little ‘Lato Speculoos Gelato saying: “Deliciousness by the spoonful. Wonderful innovation. We loved the creamy texture… the balanced spice notes lifted the overall experience, enhanced its eatability, making it totally morish.” Tip Top Ice Cream Company Kāpiti Fig & Manuka Honey was recognised with the other supreme award, being named Americold Supreme Champion. This was one of seven trophies Tip Top was awarded. The judges raved about this product saying: “A superstar in the 28

FMCG BUSINESS - OCTOBER 2022

constellation of premium ice creams. A clear standout with its innovative use of figs in a rich creamy manuka honey ice cream to bring together two Kiwi favourites.”

Pure New Zealand expands footprint Despite challenging market conditions, PURE New Zealand Ice Cream have dramatically grown their supermarket footprint in the last 18 months. Their thirteen-strong range of premium ice cream, gelato and sorbet flavours are now in around 150 supermarkets nationwide. The Countdown, Fresh Choice, New World, Farro Fresh and Moore Wilson Banners have led the charge to offer more of the Wānakabased artisan products. Bidfood offer PURE to foodservice customers nationally - and the company began exporting to Japan last year. New products like Lemon Curd Ice Cream, Damson Plum Sorbet and Choc Orange are establishing a strong following. And there are further new flavours in the pipeline for release through PURE’s strategic partner, Domino’s NZ. “We like to view our consumers as purists…,” says Brian Thomas, Coowner and Director. “In true artisan tradition, we prepare, produce, pack and dispatch all our products by care of hand from our modest premises in the Wānaka Township. We use local and carefully sourced natural ingredients to create naturally delicious flavours that are certified gluten and peanut free and contain no artificial flavours, colours, emulsifiers or other additives.” There continues to be strengthening demand for lactose-free products and PURE New Zealand Ice Cream was recently named Dairy-Free

[ category insights ] Category Champion and Gold Medallist in the 2022 NZ Ice Cream Association Awards. This flavour features a house-made purée of premium mango fruit, rippled through a coconut cream gelato base – a perfect dairy-free tropical treat for spring and summer! Contact PURE by email at icecream@purenzicecream.co.nz or go to purenzicecream.com for further information.

Little Lato Being little is a surprisingly big deal when it comes to making gelato, explains Founder Hannah Wood. “It means we can hand select the finest seasonal ingredients, hand make our gelato with love, and be hands-on in inventing all kinds of delicious new flavours. “At the heart of our flavour philosophy is curiosity and surprise, and the imaginative fusion of ingredients. Think spiced gelato loaded up with chunks of Christmas pudding or interesting collaborations with some of our favourite local artisans. “Our goal is to create a love of authentic gelato here in NZ, using real ingredients and using the principles learnt while studying in Bologna, Italy at the Carpigiani Gelato University (yes, there is such a place!). We also want to have indulgent and innovative flavours that cater to everyone, regardless of different dietary requirements, including gluten, dairy and nut-free. “No matter what you decide, each and every small batch of Little Lato is handcrafted and churned to velvety, silky perfection. Originally launched in December 2017, Little

ICE CREAM & FROZEN DESSERT Dollars (000s)

Dollars Growth % YA

Total Ice Cream & Frozen Dessert*

$397,546

11.5%

Ice Cream

$223,612

5.4%

Frozen Fruit Dessert

$82,447

17.3%

Ice Blocks Milk/Water*

$40,104

26.0%

Dairy Free Ice Cream*

$17,184

13.7%

Frozen Cold Dessert

$13,527

-8.7%

Frozen Fruit Pie/Pastry

$7,859

1.1%

Frozen Dessert Other*

$6,460

22.8%

Gelato/Sorbet

$3,485

-5.5%

* denotes value AND unit growth > +2% Source : IRI Market Edge Grocery MAT to 04/09/22 (Selected segments)

‘Lato now supplies gelato to six branded Little ‘Lato parlours throughout Auckland, Coromandel and Rotorua. We also now have pints available in a wide number of boutique grocers and delicatessens and cater to events all over Auckland. 2022 has been a great year of awards here at Little ‘Lato, picking up the Supreme Champion for Boutique Ice Cream Manufacturer in New Zealand. “We also won Champion Gelato product in the NZ Ice Cream Awards, alongside three gold medals in the 2022 Outstanding NZ Food Producer Awards,” says Wood. For more information or to enquire about supply opportunities contact Hannah at hannah@littlelato.nz or 021 025 73500.

DELI DELIGHTS Grazing tables, cheeseboards and antipasti platters are trending. Find out about exquisite cheeses this month (see pg 44-45 for more information) and stock up on new deli items for easy entertaining.

Pinot & Plum Fruit Paste joins Rutherford & Meyer range This October, Rutherford & Meyer introduce an exciting new flavour to New Zealand’s favourite fruit paste line-up – Pinot & Plum. Combining New Zealand’s famous Pinot Noir with the sumptuous sweetness of plum it is a balanced combination just waiting to be enjoyed on cheeseboards. “We are always looking for delicious new flavour combinations. We want to help make those special moments of sharing with loved ones, that little bit more exciting,” says company founder & CEO Jan Meyer. Pinot & Plum pairs beautifully with all kinds of hard cheeses with a lovely mixture between the classic savoury flavour of Pinot Noir, the

sweetness of plum and the bold intense flavours of cheddar or parmesan. Just add one of Rutherford & Meyer’s range of artisan crackers and your entertaining platter is complete! “Whether it’s the classic gourmet or rice wafers that help to highlight the sumptuous flavour of the cheese and paste combo, or the Upcycled Grain Project Grain Crisps that are bursting with fruity flavour and a crunch – this combination is a sure way to impress your friends or a tasty way for you to indulge your tastebuds at home,” says Meyer. Pinot & Plum Fruit paste is made from all natural, dairy free, gluten-free ingredients. It is an entertainers dream and will be a must-have platter addition! For further information go to: https://rutherfordandmeyer.co.nz/

PREPACKED DELI Dollars (000s)

Dollars Growth % YA

Total Prepacked Deli*

$233,675

8.8%

Continental Meats*

$88,115

10.3%

Ham*

$57,126

10.7%

Other Deli Meats

$37,648

6.8%

Olives*

$12,980

8.6%

Onions & Gherkins*

$11,475

12.9%

Other Pickled Veg*

$9,181

5.8%

Chilled Antipasto

$7,469

-1.8%

Luncheon*

$6,040

17.9%

Salads

$3,640

-17.9%

* denotes value AND unit growth > +2% Source : IRI Market Edge Grocery MAT to 04/09/22 (Selected segments)

FMCG BUSINESS - OCTOBER 2022

[ profile ]

GOODFOOD GROUP - POISED FOR GROWTH The launch of the Goodfood Group changes in the company’s history, brand brings together the Bluerock, and recognises the legacies left by Sir Sulkem and Pacific Supplies businesses William Goodfellow, his son Douglas under one name. Goodfellow, and more recently, his Bluerock owns the Food Snob brand grandson Bruce Goodfellow, who (specialty cheeses and antipasti), and the expanded the Amalgamated Dairies Veesey dairy-free cheese brand, along family business into new areas. with consumer brands like Flora spreads “Thanks to their vision, we are a growing, and Rana pasta. Sulkem imports food full service, multi-channel food business. and beverage ingredients, and Pacific I believe that the change to Goodfood Supplies distributes a range of specialty Group will benefit how we work overall. food products. We are streamlining our back-end The company’s origins began in the operations and external communications early 1900s with Sir William Goodfellow, - ultimately enhancing how we develop Goodfood Group owners, Fiona Prenter (fourth a pioneer in New Zealand’s dairy our culture as a company.” generation Goodfellow) and Mark Prenter (CEO). industry. The fourth generation of the “The ‘Goodfood Group’ name reflects Goodfellow family are the company’s and builds upon the heritage of the owners today. Goodfellow family and its place in our food industry history. ‘Good’ is The Goodfood Group name pays homage to the ‘Good’ in Goodfellow, a tribute to our founders, while ‘food’ states the business that we are and reflects the heritage, values, purpose and mission of the company. in. The new brand name involves us unveiling a new company logo, According to CEO, Mark Prenter, this is all about the concepts of alongside our new tagline - Family and Food for the Future. This all ‘good food’ and ‘family’. He says the move is one of the biggest step provides us with a strong platform for growth,” says Prenter.

info@goodfoodgroup.co.nz

+64 9 304 0550

www.goodfoodgroup.co.nz

[ good business ]

GOVERNMENT BACKS INITIATIVES TO CUT ENVIRONMENTAL IMPACT OF PLASTIC WASTE

The Government has just announced funding for projects that will cut plastic waste and reduce its impact on the environment. “I am announcing the first four investments to be made from the $50 million Plastics Innovation Fund, which was set up last year and implemented a 2020 election promise,” Environment Minister David Parker said. Environment Minister David Parker The projects are: • Marley NZ, partnering with Waste Management and Unitec, to minimise construction waste by breaking down old plumbing pipes made of PVC and HDPE and using the material to make new pipes. • A research and development project by Pinehurst Associates, in collaboration with Scion, to develop bio-degradable nursery pots as an alternative to traditional plastics pots. The pots would degrade once planted, to support plant growth. • A partnership with Policon to expand New Zealand’s onshore recycling capability, by turning waste polystyrene, such as you find in appliance packaging, into innovative building products. • An initiative with Kaipaki Dairies that extends their reusable milk keg delivery service, removing up to a million single use plastic milk bottles per annum. Total funding for the four Plastics Innovation Fund projects amounts to $5.57 million. “Together, these projects help to turn Kiwi innovation and imagination into reality, and change the way we make, use and dispose of plastics,” Parker said. “We are also utilising funding from the Waste Minimisation Fund to 32

FMCG BUSINESS - OCTOBER 2022

“THESE INVESTMENTS WILL HELP REDUCE THE AMOUNT OF PLASTIC WASTE THAT GETS INTO THE ENVIRONMENT AND INTO LANDFILL” – ENVIRONMENT MINISTER DAVID PARKER help design a regulated plastic packaging product stewardship scheme for New Zealand. Once in place it will require producers, brand owners, importers, retailers and consumers to take responsibility for collecting and dealing with plastic packaging.” An estimated 60% of plastic imported into New Zealand is used by the packaging sector. The Government is providing $994,900 to industry organisation the Packaging Forum to design a regulated plastic packaging product stewardship scheme over two years. The project will see representatives from across the plastic packaging chain come together to design a fit-for-purpose product stewardship scheme. The Packaging Forum and the NZ Food and Grocery Council will also contribute funding to the project, which will cost a total of $1,361,000. “Together, these investments will help reduce the amount of plastic waste that gets into the environment and into landfill. They build on the decisive action the Government has already taken to tackle the problem of plastic pollution, including the ban on single-use plastic bags, polystyrene food and drink packaging and other single use plastic items,” Parker said. “The actions our Government is taking move New Zealand closer to using plastic in ways that prevent harm to the environment.”

[ made in NZ ]

NATIONAL PRODUCT OF ICELAND – MADE RIGHT HERE IN NZ This month’s finalist for the FMCG Business Product of the Year Award is Isey Skyr - a unique cultured dairy product that is the national product of Iceland, having 1100 years of tradition. The Vikings brought the cultures and recipes from Europe and over the generations the “magic” of the product has been retained and passed from mother to daughter. There is only one Isey Skyr and only five factories worldwide that produce it – with the latest one being a plant in New Zealand. It’s the only true Skyr factory in the Southern Hemisphere and will also supply the Australasian markets. The production facility is in the heartland of Taranaki, with local dairy farms contracted to supply the milk. Isey Skyr NZ is licensed to use the cultures and production techniques by MS Dairies in Reykjavik who hold the statutory rights to manufacture and develop Isey Skyr by the Icelandic government. “Since we launched in April 2022 with Foodstuffs, Farros and WDL sales have been phenomenal,” says Tony Trilford, Managing Director at Surge SMC. “Our expectations have been smashed with average weekly sales being over double expectations and they continue to grow. We are also launching into the new Costco at Westgate and Countdown will be next. We can honestly say that in all our years in the FMCG market we

have never seen such a product hit the market and gain such immediate traction with consumers. “We were honoured to be named finalists in the Foodstuffs Partnership Awards and shopper and consumer feedback is thrilling. The product has the highest level of protein of any cultured/yoghurt type product and with less than 0.5% of fat and less than 1% sugar it truly is a superfood – and it tastes thick and creamy with an interesting flavour range of Crème Brulee, Baked Apple, Vanilla, Plain, Strawberry and Blueberry.”

UCT OF THE OD YE PR A

Do you have a Hero product that stands out from the crowd?

•

•F M C

FMCG BUSINESS PRODUCT OF THE YEAR If there’s a tasty tastebud teaser, NPD rockstar, or best seller

‘Product Of The Year’ - we’d love to hear from you!

PRODUCT OF THE YEAR

•F M C

•

in your portfolio that deserves to be crowned 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@fmcgbusiness.co.nz FMCG BUSINESS - OCTOBER 2022

[ spreads ]

AFFORDABLE QUALITY PLANT-SEED SPREADS

For over 30 years Tablelands have been a popular spread for Australian families – and now Tablelands’ affordable & quality plant-seed spreads are available in New Zealand. The range has been designed around health, nutrition and value for money for the whole family. Health experts such as the Heart Foundation have recommended using plant-based spreads with lower saturated fat than butter for many years. Tablelands spreads are made from plantbased seeds like Canola and Sunflower, with oil being released via the process of pressing the seeds.

Why are Tablelands plant-seed spreads healthier? • No artificial flavours & colours • 65% less saturated fat than butter • With omega 3 – essential for good health • Suitable for vegetarians The range consists of three great tasting everyday spreads suitable for the whole family. 34

FMCG BUSINESS - OCTOBER 2022

• T ablelands Reduce Cholesterol – with plant sterols to assist in reducing cholesterol. A great value option for customers to help them to reduce their cholesterol absorption. • Tablelands Olive Oil Spread 500g – combining the benefits of olive & canola oils to provide a great tasting and versatile spread for use on crusty bread, hot vegetables and baking. • Tablelands Buttery Dairy Free – Suitable for lactose intolerance, vegans and vegetarians with a rich and natural butter flavour ideal for all the family.

To order the range contact: Dileep Maddukuri, Business Development Manager BDM@ashon.co.nz Mr Mohit Shrivastav, General Manager mohit@ashon.co.nz Tel: 09-2710815 For more information visit https://tablelandsspreads.co.nz

[ profile ]

SUSTAINABILITY: ARE WE THERE YET? Scrutiny of sustainability and other ethical considerations can seem never-ending, because it is. The simple fact is that for all the effort which has gone into sustainability initiatives over recent years, there’s still plenty more to do. And there are plenty of people who take a keen interest in it who influence others. Since it’s not going away, it has to be a focus for FMCG brands and retailers. Fortunately, there are still many ways to improve product and organisational sustainability without it costing a fortune, including packaging. “As specialists in FMCG packaging we at Brother constantly school ourselves in its practicalities. We also have to master how to convey sustainable attributes as part of the design,” says Brother Design, Business Development Director, Jenny McMillan. “Here’s a tip: it’s not enough to use words. “What we have learned from redesigning and re-launching thousands of SKUs is that non-verbal cues are often more important than text, and you certainly can’t rely on language alone. “Imagery, shapes, colours, hues – all these and more have to align with a brand’s attributes in a way that connects with consumer values and expectations. The results can be anything but predictable,

though we have learned a great deal about what is likely to work. “Wherever you are on the sustainability journey, you need to ensure all the hard work you’ve done isn’t undermined by issues with your packaging. Talk to us about how to give your brand the design it deserves.” jenny@brotherdesign.co.nz

[ good business ]

NEW SOCIAL SUPERMARKET FOR WHANGĀREI 155 Whare Kai, a social supermarket based in Whangārei has opened to provide food support with dignity. The social supermarket is a partnership between 155 Whare Āwhina and Foodstuffs North Island, the 100% New Zealand owned and operated co-operative behind New World, PAK’nSAVE and Four Square. Social supermarkets enable people who are experiencing food insecurity to choose what (L to R) Liz Cassidy-Nelson and Willa Hand they need for themselves in a inside the Whangarei Social Supermarket. supermarket-style environment – rather than collecting a pre-filled food parcel from the foodbank, that might not meet their specific needs. 155 Whare Āwhina’s CEO Liz Cassidy-Nelson says: “Here at 155, we do all we can to challenge injustice, inspire change and lead innovation locally. The past few years have been tough for so many, yet I’m constantly inspired by the resilience of our community. Now they can choose kai for their whare with dignity and mana, which is everyone’s right.” She says the support from Foodstuffs North Island has been fantastic. “We are so grateful to have them as a partner on this innovative project.

They have been wonderful and incredible in sharing their expertise, knowledge and resources every step of the way.” The social supermarket at 3 Woods Road in Whangārei is an extension of the wraparound community services 155 Whare Āwhina already provides for whānau in the Tai Tokerau community. This is Foodstuffs’ fourth social supermarket partnership, following the success of the Wellington City Mission Social Supermarket, Te Hiku Pātaka in Kaitaia – which is a partnership with Te Kahu Oranga Whānau and Tokoroa Social Supermarket, in partnership with Buttabean Motivation. Foodstuffs North Island plans to roll out its social supermarket initiatives to more communities in the year ahead, and work is underway with community partners in a number of other regions. The social supermarket programme is part of Foodstuffs’ pledge to be Here for NZ, helping to ensure all New Zealanders have access to healthy affordable food and supporting local communities to thrive.

[ profile ]

SUPPLY CHAIN PLANNING NEEDS TO SWITCH GEARS Many traditional FMCG companies are struggling to adapt and succeed in this increasingly complex and dynamic world. FMCG is well known for its reactive problem solving and near-term responsiveness, but few have emerged from the recent global supply chain challenges without recognition that they can be better prepared, more resilient, efficient and agile in responding to disruption, says Chris Foord, Associate Partner of Argon & Co NZ. “Supply Chain planning needs to switch gears. A genuinely cross-functional set of processes and way of working that can sense and respond to uncertainties and challenges is required. Uniting behind a set of decisions maximising opportunity and mitigating risk whilst balancing sales revenue, cost control, service levels, capacity constraints and working capital objectives is what S&OP is all about. However, a plan doesn’t need to be fixed, it needs to be able to adapt and inform the best course of action available, providing visibility and orchestration of the end-to-end supply chain. “Getting your S&OP process mature and agile enough requires a focus on building a robust yet flexible Planning operating model providing your 36

FMCG BUSINESS - OCTOBER 2022

people with the ability to leverage great processes and enhanced digital capability. Self-generating demand, self-adjusting supply with control tower oversight and human augmented decision making is here. Jump in and embrace digital transformation of your S&OP process to unlock enhanced plans, resilience, efficiency, and agility. “With expertise spanning the supply chain, procurement, finance and shared services, Argon & Co work together with clients to help them every step of the way to transform their business and generate real change.” For further information: www.argonandco.com

[ profile ]

ROMANOS & CHICAGO PIZZA RETURN IN 2022 After the devastating manufacturing fire in March 2021, Romanos Food Group is looking forward to its brand-new building being operational from October 2022. Romano’s was established in Christchurch nearly 50 years ago. “Since the fire we have constantly been humbled by the support of our customers both at head office and store level, who have supported us on our journey to get our Chilled Romano’s, DaVinci and Frozen Chicago brands back instore,” says Brad Kirkpatrick, Managing Director Romanos Food Group. “IRI MAT to 28/3/21 Total Fresh & Frozen Pizza within NZ Grocery delivered $66M with Romanos Fresh & Frozen contributing $28.5M, 43% market share. “We’re looking forward to delivering the pizzas we’re so passionate about with our team to the local and export markets as well as future

opportunities that we will get in the new purpose-built facility, which has brand new machinery on the Foundry Drive, Christchurch site. “This site will be able to manufacturer 50,000 units daily of chilled & frozen pizza plus chilled pizza bases and enable us to re-engage our market share position that we had before the factory fire. “We are also looking forward to launching some new chilled pizza flavours to continue our innovation and align to the trends and insights of convenience food that will significantly drive sales and grow the Chilled category back to its $35M value (IRI MAT to 28/03/21),” says Kirkpatrick. For more information contact us on 0800 74 99 22, email salesupport@romanos.co.nz

The Romano’s Difference Established in 1975, Romano’s is a Christchurch-based, 100% family-run, Kiwi-owned business that has grown into one of New Zealand’s leading manufacturers of supermarket branded Chilled & Frozen Pizzas and Pizza Bases. Romano’s is passionate about delivering delicious and authentic quality pizza made from traditional recipes with quality ingredients that all families can afford to enjoy.

To ensure you have the best range of Chilled & Frozen Pizzas instore contact salesupport@romanos.co.nz or call 0800 PIZZAA (0800 74 99 22) for more information.

[ FGC ]

SIGNING OFF – A TIME FOR REFLECTION

Katherine Rich My last article as CEO of the NZ Food & Grocery Council www.fgc.org.nz

food& grocery COUNCIL NEW ZEALAND

“THE MANTRA OF FGC MEMBERS IS IF WE ARE PART OF THE PROBLEM THEN WE’LL WORK HARD TO BE PART OF THE SOLUTION” 38

During 13 years with the New Zealand Food & Grocery Council it has been my privilege to work alongside so many wonderful people who are very passionate about what they’re doing. Our organisation is small in relation to other industry associations, but it is mighty because of its network of members, who volunteer their time and energy to work on a wide range of issues. That network extends to experts in Australia and further afield, meaning, regardless of the topic there was always best-practice advice available to me and local officials. The past decade has been a time of real change in the sector. FGC’s membership has increased by 130 companies to more than 250, a reflection of the pace of change and the need for businesses to stay up to date. We’ve assisted the improvement of laws, including the Food Act, changes to Cosmetics Standards, Hazardous Goods, Fair Trading, and the Commerce Act. One of my favourite “improvements” was the removal of over-the-top regulations for new toothpastes and antidandruff shampoos. It was bizarre New Zealand was one of few countries to treat these products under medicinerelated law instead of a cosmetics standard. This meant consumers often did not get access to new variants available around the world because it was too expensive to get registrations. I recall one member telling me it cost around $100,000 in consultants every time they wanted to launch a new product into our market, so often they didn’t bother, and we missed out on new innovation. Medsafe agreed those rules were silly, but kept saying it wasn’t on their “work programme” and they had no intention of seeking change. We went to thenHealth Minister Tony Ryall, and he also thought our rules were out of step with the world. He took less than a minute of deliberation before saying to officials ‘let’s put it in the work programme’. Some might say “groceries, who cares”, but the effect was for the first time our consumers had access to more choice and the latest products. The same can be said for the reformulation of many foods and beverages over the past 15 years to reduce salt, sugar and fat, with FGC members working hard to research, develop and launch healthier options. Beverages are the best example of this, and now there are low or no-sugar options of all the major brands. Consumers have switched to these options and it’s been all done without the need for punitive taxes, which many in public health continue to campaign for. I’m particularly proud of the way FGC led an industry group, which included FMCG, hospitality,

FMCG BUSINESS - OCTOBER 2022

fast food, supermarkets and advertisers, to look at other improvements for the health of Kiwis. The Food Industry Taskforce made many decisions that resulted in positive changes to advertising rules and the reformulation of foods. I have been in awe of many FGC members whose work led the way on new approaches to labels on packaging, whether it be the Health Star Rating system to promote healthier choices or the rollout of the Australasian Recycling Label programme. Most multinational companies in New Zealand have played their part in improving our food and grocery environment through participation in FGC projects. But if there is any sadness it would be that companies such as Procter & Gamble and MARS appear to have stepped back from their responsibility of involvement in New Zealand’s big issues. The mantra of FGC members is if we are part of the problem then we’ll work hard to be part of the solution. It makes sense these billion-dollar companies can’t continue to send tonnes of plastic and other packaging here and freeload on sustainability initiatives of their industry colleagues who are working hard to increase recyclability and reduce plastics. The same goes for foods so inextricably linked to discussions about obesity and wellness. It’s my hope companies such as these will return to play their part and see their participation in the industry-wide collaborations through FGC as part of their social licence to operate here. Finally, a word about changes to competition law, which FGC has been supporting for well over a decade. The suite of changes made by the Government, which include updates to the Fair-Trading Act to prohibit unconscionable conduct, the Commerce Act to strengthen prohibitions of the abuse of market power, and the introduction of a strong mandatory Grocery Code of Conduct and a Grocery Regulator, will make a difference for suppliers. None of these will make our industry a paradise, but they will ensure there are clearer boundaries for conduct and treatment of suppliers. Having a regulator, which will have wide powers, will ensure that scrutiny of behaviour and practice continues. I would like to thank all FGC members for their support and work over the years. It has been my absolute privilege to work alongside and meet thousands within our industry. Thank you to all members, our Chair, and our Board. Thank you also to the mighty FGC team of Kira Mikelatos, Brent Webling, and Carole Inkster, which has worked together for over a decade.

[ James & Wells ]

LESS CAN MEAN MORE IN THE TRADE MARK SPACE The speed by which brands come to market in the food and beverage industry can create a tendency to cast the net wide but with a short-term view when considering trade mark protection. However, it pays to take a more strategic approach to maximise the protection of the trade mark registration, and ultimately its value to the business. An Intellectual Property specialist can help you identify the critical elements of your trade mark that are the most worthwhile protecting. When coming up with a new trade mark, many businesses make the mistake of applying for the full mark of what they are using rather than its individual and distinctive components. For example, if you register a stylised version of JASMINE’S JAGUAR JUICE for orange juice your scope of protection will be much less than if you only register the mark JAGUAR in plain text. The registration will be infringed by anyone who uses the word JAGUAR (or words that sound similar) in relation to juice. Whereas, the longer stylised version of the mark will only be infringed by someone who uses all or most of the words, or similar sounding words, and who uses a similar form of stylisation. Likewise, while a logo can be easier and cheaper to secure, it might not provide the best rights for your business. There is also an art to making sure the registration is broad enough to cover your key goods in a cost-effective way, maximise your ability to sue for infringement, and avoid a registration so broad that it may be vulnerable to attack. If the business has a clear and realistic business plan around future prospects for the mark/brand in five years’ time, then this should be reflected in the scope

of goods and services applied for. Rights holders have a period of three years by which they can commence use of the mark on the applied for goods and/or services. After this period the mark can become vulnerable to being removed from the Register if it hasn’t in fact been used on or in relation to the goods and/or services. There can also be implications for international applications if the scope is too wide. For example, in the United States when an applicant files a trade mark application it must indicate a statutory basis for filing the application. One of those statutory bases includes possessing a bona fide intent to use the trade mark in commerce with the goods or services identified in the application. This applies even if the applicant has a registration for the same mark in their “country of origin”. In this case it will be important for businesses to document all steps taken in furtherance of bringing the goods and services to the US marketplace under the trade mark. When looking at international trade mark protection, it’s good to identify from the outset what protection is time critical for application and what countries should be prioritised. For example, there is only a six-month window where you can file in other convention countries (that are signatories to the Paris Convention for the Protection of Industrial Property), and claim earlier priority on the Register from your New Zealand application/registration filing date. There can be good tactical reasons for wanting to do this, and knowing what countries will be a priority for the business can help better achieve registration in a cost-effective manner.

Stephanie Hadley Associate, James & Wells Since 1979, James & Wells has been at the forefront of innovation in Australasia. We are here to help you grow, leverage and protect your intellectual property. www.jamesandwells.com

“THERE IS AN ART TO MAKING REGISTRATION BROAD ENOUGH TO COVER KEY GOODS IN A COSTEFFECTIVE WAY.”

FMCG BUSINESS - OCTOBER 2022

[ marketing ]

THE ORIGINAL INFLUENCERS

Lew Bentley Head of Strategy Shopper Marketing Agency Energi lew.bentley@energi.co.nz

With the passing of Queen Elizabeth II recently I thought I’d pen an article about the role of the Royal family as the original influencers. There is a great deal of noise these days about social media influencers and how they can create brand attention and drive sales. This is big business that can command big money. If your surname is Kardashian we’re talking a million dollars plus per post. A lot of the discussion in contemporary communication circles would suggest that influencers are a modern phenomenon; the next big thing. Not so. The original influencers are the Royal family through their Royal Warrants of Appointment. These have been around since the 15th Century and signify those who supply goods or services to the royal court or to specific royals. There are two current Warrants available: that for now King Charles III, and William the new Prince of Wales. Warrants issued by the Duke of Edinburgh became void upon his death, as did Warrants issued for Queen Elizabeth II. Companies that held these Warrants can continue to use the Royal Arms and “By appointment to…” reference for up to two years. These days you’ll find Royal Warrants on brands like Cadbury, Twinings, Land Rover and Schweppes. Interestingly, there seems to be a lot of champagne and car brands. In total Charles III granted 159 Warrants while he was the Prince of Wales and Queen Elizabeth II granted 686. A Royal Warrant is a recognisable sign of prestige and quality. Holders can display the coat of Arms and

“By appointment to…” claim on their products, in advertising and brand collateral. The process for gaining a Royal Warrant is very strict. The company needs to have at least five years history of supplying goods and services before it can apply. The application is then considered by the Royal Household for recommendation to the Royal Household Warrants Committee. It then passes to the royal granting the Warrant for final ratification. Each year there are about 20-40 Warrants granted and a similar number cancelled. Companies can lose their Royal Warrants if they don’t play by the rules. For example lingerie company Rigby & Peller lost its Royal Warrant when a bra-fitter to the Queen made references in her book “Storm in a D-Cup” to her visits to Buckingham Palace. In 2000 Harrods lost its Royal Warrant from the Duke of Edinburgh allegedly because of comments made by owner Mohammed al Fayed surrounding the death of his son Dodi al Fayed and Princess Diana. There is a big difference in how Royal Warrants create influence compared to modern social influencers, as shown in table below. All brands can do with the support of the right recognised influencers. Royal Warrants have been a powerful driver for traditional brands literally for centuries. With the passing of the Queen the interesting royal influencers to watch will be Princes William and Harry. Now able to grant Royal Warrants William will bring a fresh take on tradition. Brother Harry, on the other hand, seems to be more commercially Oprah.

Royal Warrants

Social Influencers

Role

A brand asset (seal of endorsement)

Marketplace reach via popularity

Place

On the product, packaging, in advertising or in the business

On the influencer’s social media handles

Duration

Long-term - Always on while the Warrant is retained

Short-term - Campaign or one-off post

Reach

Everyone who sees the brand

Number of followers

Authenticity

High - At least 5 years of purchasing history

Low - Paid to promote short-term

Medium

Coat of Arms and By Appointment to…symbols

Static or video posts

Relevance

Strong for brands that want to align with traditional, British values

Can align the right influencer and their values with your brand

“THE ORIGINAL INFLUENCERS ARE THE ROYAL FAMILY THROUGH THEIR ROYAL WARRANTS OF APPOINTMENT” 40

FMCG BUSINESS - OCTOBER 2022

[ legal advice ]

RECOVERING DEBTS

THROUGH STATUTORY DEMANDS Unpaid debts can have a significant impact on the balance sheet of any business. One option where the debtor is a company is to issue a statutory demand. Statutory demands are a particularly useful tool where the debtor is a company and the debt is undisputed. But how do statutory demands work? The statutory demand process is set out under the Companies Act 1993. A statutory demand must: (a) B e in respect of a debt that is due and not less than the prescribed amount (currently $1,000.00); (b) Be in writing; (c) Be served on the debtor company; (d) R equire the company to pay a debt, enter into a compromise or otherwise reach a settlement with the creditor within 15 working days of service or such longer period as the Court may order. Once you serve a statutory demand on the debtor, the debtor has 15 working days to resolve the debt as set out above. If the debtor wishes to dispute the statutory demand, they have 10 working days from service of statutory demand to apply to the court to set it aside. The application to set aside the statutory demand usually commits the debtor company to legal advice and costs and so particularly where the debtor’s legal costs are likely to exceed the undisputed debt the debtor company may simply opt to pay their debts. However, equally there is a risk that this could commit the creditor to the legal costs of the set aside application. Therefore, a statutory demand is usually

only an effective recovery tool where there is no dispute as to the amount owed. Generally, if the debtor does not apply to set the statutory demand aside and does not comply with the 15 working day period then the debtor company is deemed insolvent. The creditor can then apply to the Court to have the debtor company placed into liquidation within 30 working days of the last date for compliance with the statutory demand. If the debtor company is genuinely insolvent then this may bring the matter to a head. If, however, the debtor company is simply being unresponsive or belligerent it may lead to some movement on their part for fear of their solvent company being put into liquidation. A statutory demand can be a powerful tool for recovering undisputed debts against a debtor company. Because the onus and costs of the statutory demand process initially fall on the debtor company it can often be a more cost-effective and efficient tool than other recovery options such as proceedings. However, while it can be simpler than other methods and reduce the need for lawyers and their costs it will not always be the most appropriate option and laypersons will need help in avoiding mistakes in complying with this process. For this reason, professional advice should still be sought and quickly, particularly where you are the recipient of a statutory demand.

James Stewart Director Steindle Williams Legal Limited Barristers & Solicitors swlegal.co.nz

“A STATUTORY DEMAND IS USUALLY ONLY AN EFFECTIVE RECOVERY TOOL WHERE THERE IS NO DISPUTE AS TO THE AMOUNT OWED.”

FMCG BUSINESS - OCTOBER 2022

FMCG BUSINESS MARKETING SUMMIT HIGHLIGHTS

Ian Wentworth (Head of Innovation Kantar) and Dom Quin (General Manager for Marketing and Customer Experience Foodstuffs NZ)

FGC CEO Katherine Rich

Matt Grantham from Onfire Design (centre) with the Dairyworks team.

The FMCG Business Marketing Summit was held on 1 September in Auckland, with insightful presentations from Dom Quin (Foodstuffs NZ), Katherine Rich (FGC), Malcolm Rands (Fairground Foundation), Ian Wentworth (Kantar), Larissa Watson (NielsenIQ), Anna Henwood (Stickybeak), Ben Cain (James & Wells), and Lew Bentley (Energi Shopper). The marketing masterclass also offered valuable networking opportunities and lively debates during Q&A sessions with industry experts. We are thankful to all those who joined us at the Summit and for the support of our sponsors: Kantar, Onfire Design, Stickybeak and Mintel.

MC Mel Homer

Lew and Louise Bentley (Owners at Energi Shopper) with Nicole Campbell from Dilmah.

Anna Henwood (CEO Stickybeak) and Larissa Watson (Consumer Intelligence Lead at NielsenIQ)

The event offered plenty of networking opportunities

Malcolm Rands (Executive Chair at the Fairground Foundation)

FMCG BUSINESS - OCTOBER 2022

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The Kantar team - Gold Sponsors of the Summit

Larrissa Watson (Consumer Intelligence Lead at NielsenIQ)

Attendees enjoyed networking drinks after the Summit

Ben Cain, Senior Associate James & Wells

The Q&A session was moderated by MC Mel Homer

Lew Bentley (Head of Strategy and Owner at Energi shopper

FMCG Business National Sales Manager Vicky Bennett and Event Manager Shaughan Woodcock

Drinks were served at the bar after the event

FMCG BUSINESS - OCTOBER 2022

CHEESE TASTINGS ARE BACK FOR NZ CHEESE MONTH Masks are off just in time for NZ Cheese Month this October – which means Kiwis will be able to enjoy cheese tastings again as they shop. An annual event on the country’s food calendar, NZ Cheese Month is an initiative of the New Zealand Specialist Cheesemakers Association, focusing attention on the flavour and importance of our local cheese industry. This year – the first NZ Cheese Month in two years without Covid restrictions – will see cheesemakers hosting tastings across the country, sharing their wares and explaining the cheesemaking process with cheese lovers across the nation. From farmers’ markets to supermarkets and speciality food outlets cheesemakers will be popping up in stores throughout the month, meeting customers and sharing the love of New Zealand cheese. A specialist New Zealand Cheese Guide has also been released to coincide with NZ Cheese Month. It’s packed with suggestions for how to serve and store cheese, profiles on top 2022 NZ Champions of Cheese Awards trophy winners as well as a guide to the Top NZ Cheese Stores – so people know where to pick up locally produced cheese. NZ Cheese Guides are available at specialist 44

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cheese stores, New World North Island supermarkets, cheese factory stores and farmers’ markets. Additionally, through www.cheeseloversnz.co.nz a year’s worth of New Zealand cheese will be given away. One lucky Kiwi cheese lover who votes in the Rutherford & Meyer Favourite NZ Cheese Company 2022 will win a curated box of NZ specialty cheese every month for a year. At the end of NZ Cheese Month, the cheesemaker with the most votes will be crowned ‘Rutherford & Meyer Favourite NZ Cheese Company’. NZ Cheese has been a favourite for many over the past couple of tumultuous years and with that in mind some cheese loving Kiwis share their thoughts on NZ Cheese: Kathy Paterson, food writer and cookbook author said; “New Zealand cheese is a good fit with my ‘buy local lifestyle’ and my firm focus on supporting this country’s cheese producers. Locally sourced milk provides complexity, unparalleled flavour and texture in seasonal offerings from our devoted cheesemaking enthusiasts. New Zealand cheesemakers obsessive attention to quality is exciting and rewarded with depth of flavour.”

[ events ] Jason Tarrant, NZ Champions of Cheese Master Judge said, “When you buy New Zealand cheese, you’re supporting our local economy. In return you’ll receive a delicious product made with 100 percent fresh New Zealand milk. You can be confident our New Zealand cheese is of world-class quality, while remaining true to our climate giving it a unique flavour.” NZSCA Chair, Catherine McNamara says cheesemakers are encouraging Kiwis to try a new cheese this year. “We all end up with two or three ‘go to’ products that we know and love. However, for NZ Cheese Month this October we’re encouraging cheese lovers to branch out and try a new NZ cheese.” “Our industry is constantly evolving and there are so many new locally made cheeses available, by challenging yourself to try something new there’s a chance you’ll find a new favourite NZ cheese.” Catherine says as well as enjoyment, it makes economic sense for Kiwis to buy New Zealand Cheese. “Buying locally made cheese keeps jobs and money in our country. It’s also supporting our regions as many of the cheesemakers and the farms that support them are in rural areas. Buying New Zealand cheese reduces food miles!”

Searching for NZ’s favourite cheese company Cheese lovers are encouraged to visit www.cheeseloversnz.co.nz vote for their favourite NZ Cheese Company. The NZ Cheese Company with the most votes at the end of NZ Cheese Month will be named Rutherford & Meyer Favourite NZ Cheese Company and one lucky voter will win a box of cheese every month for a year!

Find NZ cheese on the Cheeselovers NZ website Wherever cheese lovers live or holiday in New Zealand check the directory of New Zealand cheesemakers, top NZ cheese stores and farmers’ markets on the website www.cheeseloversnz.co.nz

“WHEN YOU BUY NEW ZEALAND CHEESE, YOU’RE SUPPORTING OUR LOCAL ECONOMY.” – JASON TARRANT, NZ CHAMPIONS OF CHEESE MASTER JUDGE

NZ cheese online pop-up shop Additionally, www.cheeseloversnz.co.nz includes a page with links to special cheese offers from NZSCA cheesemaking members. Meaning New Zealand’s finest cheese is only a couple of clicks away from delivery to any home in Aotearoa.

James Thomas, founder and owner of specialist cheese wholesaler New Zealand Cheese said “Buying New Zealand Cheese supports the production of high quality, sustainable milk. Milk’s the main ingredient in cheese and how animals are farmed has a huge impact on its quality. The finest cheeses are only made with the best, fresh milk. Cheesemakers showcase this milk in every single one of the cheeses they produce with it.” Cathy Lang, Master Cheesemaker for Fonterra Brands and MilkTestNZ Champion Cheesemaker 2022 said; “Every New Zealand cheese reflects its seasonality its milk and the soil, pasture, and climate of where it comes from. We have a diverse range of cheesemakers across our two islands who are extremely innovative, creating their own unique styles of cheese. When travelling around New Zealand I like to seek out local cheese to challenge my tastebuds, this way I learn about what’s new and recommend these to my family and friends. We all get into the habit of buying the same cheese, but you’ll be reward if you push the boat out and try a new Zealand Cheese!” FMCG BUSINESS - OCTOBER 2022

C&I INDUSTRY SYMPOSIUM

10am-12noon Hosted by NZACS

The headline event of C&I NZ EXPO brings together the brightest minds of the petrol and convenience industry to challenge, inspire and educate retailers and suppliers from all banners and brands.

EDDY NADER NPG Retail

JULIE O’TOOLE Coca-Cola Oceania

HAYDN TIERNEY Bowser Bean

BRUCE COTTERILL Transformation Leader

ANDY BAIRD Z Energy

MELINDA BAILLIE Trents Wholesale

DAVE HOOKER MC NZACS

For the full program, more information and to buy tickets, visit candiexpo.co.nz call 0800 455 785 or email exhibition@candiexpo.co.nz

Entry to C&I NZ EXPO opens at 12pm

19-20 october The Cloud, Auckland

Discover the best Convenience and Impulse products and services to boost your retail offer at the C&I NZ EXPO This trade-only event provides networking, new product sampling and lead gen opportunities for suppliers and retailers from all banners and brands. Comedian Sam McCool will be interviewing visitors, quizzing exhibitors, and oﬀering great giveaways!

REGISTER FREE at candiexpo.co.nz FEELING SOCIAL? Join us for the opening night party Convenience Cocktails Tickets available through the expo website.

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BLACK MARKET AND THE ‘SMOKEFREE GENERATION’ Dave Hooker, Executive Director, New Zealand Association of Convenience Stores, raises concerns over the New Zealand Government’s Smokefree 2025 Action Plan and how it will impact small businesses. Our last update shared our views on Government’s proposal to slash retailer numbers from 6,000 to 500, ‘very low nicotine’ policies, and our proposed alternatives. We hope you managed to make submissions to the Select Committee as those have now closed. There will be further opportunity to have a say on specific detail around a retailer licensing scheme later next year, we will keep you updated. We spoke about the very real risks of these proposals exacerbating black market crime. Today, we share our thoughts about the state of the growing tobacco black market and how that’s likely to get worse because of these and the government’s policies enacting a de-facto prohibition.

Illegal Tobacco Current State • A KPMG report shows that New Zealand’s illegal tobacco is 11.4% of the market. • New Zealand Customs has told Parliament that illegal tobacco is 1020% of the market. • Illegal tobacco means more than $260m in unpaid tax. • The government has committed $2.5m, per year, for the next four years, in Budget 2022/23 to fight illegal tobacco. 48

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Dave Hooker

“WE SHARE OUR THOUGHTS ABOUT THE STATE OF THE GROWING TOBACCO BLACK MARKET AND HOW THAT’S LIKELY TO GET WORSE BECAUSE OF THESE AND THE GOVERNMENT’S POLICIES ENACTING A DE-FACTO PROHIBITION.” – DAVE HOOKER

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• There is acceptance that a decade of increasing excise tax has been a primary driver of the illegal tobacco market. On 31 May 2022, Radio New Zealand reported Customs seized more than 800,000 cigarettes, up 60% on 2021, and 390kg of loose tobacco. Chief Customs Officer Nigel Barnes said: “It’s definitely an escalation in numbers and scale. And predominantly, now, we’re seeing there’s more organised crime involved in tobacco smuggling.” The government put $10m in this year’s budget aside to help combat black market trade but the head of the anti-smoking group, ASH, Deborah Hart said current efforts to stop it were “clearly not enough”. The Minister of Customs said on 23 May this year that “…there will likely be increased demand for illegal tobacco products…” On 23 June 2022, the New Zealand Customs Service informed Parliament that estimates of the tobacco black market range from between 10-20%, a significant increase in recent years. This is a response to how the New Zealand market is being regulated. Control measures in Australia have shown poor results, a July KPMG report shows the black market is growing, at 19.3% or nearly $3.5b in lost excise revenue. The Bill proposes allowing ‘home growing’ up to 5kg each per year, equivalent to 30 cigarettes per day (three times the average consumption), this will only further strengthen its appeal and, inevitably, black market trade as smokers seek alternatives to the legal market. Published 14 May, a letter from ASH Chair Professor Robert Beaglehole said: “Most people smoke because they are dependent on nicotine. Tobacco harm reduction reduces the harm caused by burnt tobacco by replacing cigarettes with much less harmful ways of delivering nicotine; these alternatives have great potential to disrupt the cigarette industry.” Preferred Approach Customs Minister Meka Whaitiri says of the latest tobacco control bill, “I’m concerned this will lead smokers who do not have easy access to lawfully sold products to switch to illegal sellers”. Off the back of the largest ever increases in ‘locally grown’ loose leaf tobacco flooding the black market in New Zealand, it seems odd that this Bill once again exempts local growing from all the proposed policies, including the nicotine limits. This seems like a recipe for disaster.

Smokefree Generation Current State • Sale of tobacco products is R18. Government’s Proposals • To prohibit the sale of ‘smoked’ tobacco to anyone born on 1 January 2009 or after, as they age, from 2027.

Effect of Proposals • ASH Director Deborah Hart says: “We already have a smokefree generation, 15 to 17-year-olds already at smokefree, there are only 3% of them that smoke and the 15 to 24-year-old cohort, there’s declining smoking rates – that was at 10% last year – they have the highest quit rates already.” • NZ Drug Foundation CEO Sarah Helm says: “As always, we are wary of the unintended impacts of the prohibition of any substance, so we’ll be seeking more information about how the government plans to implement the ‘smokefree generation’ and low-nicotine proposals. We will be keeping a close eye on the legislation as it is drafted.” • The policy risks greater disparities with fines of $150,000 for sale to the ‘smokefree generation’ and a $50,000 fine and conviction for any person who supplies to the ‘smokefree generation’. • In time, supplying a 40-year-old with cigarettes would be illegal, supplying a 41-year-old would not – an absurd outcome. In February, ASH said more than 75% of students are getting vapes from social sources, either friends, older people, or family. Only 7.6% of those who regularly vape say their main source of vapes was a vape shop, dairy or online. How will the government deal with illegal sourcing for tobacco products in future? Preferred Approach • We agree with the Prime Minister who, when launching the Government’s proposals in December 2021 said, “vaping is a tool that is working” to help reduce the harm to adult smokers from ‘smoked’ tobacco, rather than implement policies that outlaw a future 40 year old and not a 41 year old, allow the Government’s successful “switch to quit” approach to continue. • Consider a fixed age of R21 for cigarettes only, which is easier to enforce and comply with for both retailers and regulators. • Support adult smokers to quit and where they cannot or will not, support the to switch to harm reduced alternatives. The New Zealand Association of Convenience Stores is a not-forprofit trade association representing the interests of our retail and supplier members. NZACS represents more than 1,000 organised fuel and nonfuel convenience operators around New Zealand, supporting members through effective lobbying, comprehensive advice, innovating networking opportunities, and access to industry research which can be used to inform decision making by those in the sector. FMCG BUSINESS - OCTOBER 2022

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NZACS PETER JOWETT SCHOLARSHIP

WINNERS NAMED NZACS has held its annual Peter Jowett Scholarship and awards night with record attendance.

The New Zealand Association of Convenience Stores (NZACS) has held its Peter Jowett Scholarship and awards night at the Hilton on Auckland’s Princes Wharf. Kathlynn Lee from bp was named the winner and Fernand Dignadice from Frucor Suntory was the runner up. Both have won a trip to Las Vegas to attend the NACS Industry Trade Show in October. Finalists, which included Lee and Dignadice, along with Hannah-Rose Luskie, James Gilmour, and Brooke Bennet Hati all from BAT NZ, and Martha Hudson from bp, all gave standout presentations on the Dave Hooker with Kathlynn Lee competition question for 2022… You have been given a project involving category, marketing, and operations. Your task is to take any existing category in convenience other than fuel or tobacco and re-invent or revolutionise it. Following two years of Covid-related disruption, NZACS was delighted to come together once again, with more than 100 members 50

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attending in the afternoon to support and judge the PJ Scholarship finalists. Dave Hooker, Executive Director, NZACS, said: “We were thrilled to have over 100 people in the audience for the six Peter Jowett finalists in the afternoon plus 130 for the evening awards night. The presentations were innovative and varied in their approach to a challenging topic. All finalists did an excellent job of presenting and should be commended for the work they put into this competition.” The evening NZACS Awards featured Ben Hurley as guest MC who created a relaxed and humorous Dave Hooker with Fernand Dignadice atmosphere. It was the largest turnout in years with almost 130 members and Hooker said that it was pleasing to see everyone enjoy the opportunity to network together. “It’s been an extremely challenging couple of years for our suppliers and retailers and our intention was to celebrate being back together and recognise excellence within the industry,” he said.

[ convenience & impulse retailing ] NZACS Award Winners:

Best Service to Store (Packaged Products): Winner: Coca-Cola Europacific Partners NZ

Best Service to Stores (Chilled/Frozen/Perishable): Winner: Tip Top Ice Cream

Best Administration Support to Stores: Winner: Cookie Time

Best Delivery Service to Stores: Winner: Coca-Cola Europacific Partners NZ

Best/Most Consistent Stock Supply to Stores: Winner: Imperial

Best Head Office Support - Large Supplier: Winner: Coca-Cola Europacific Partners NZ

Best Head Office Service and Support Medium Supplier: Winner: Alt NZ Ltd

Best Retail Groups for Store Execution (National Retail Group): Winner: Night ‘N Day Winner: BP NZ Ltd

Best Retail Group for Store Execution (Regional Retail Group): Winner: NPD

Best New Product Launch: Winner: Frucor for V Blue Sugar Free

Supreme Supplier Award: Winner: Coca-Cola Europacific Partners NZ FMCG BUSINESS - OCTOBER 2022

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