FMCG Business September 2020 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

SEPTEMBER 2020 – Volume 7 – No 8

Remedy Kombucha 1.25L take home pack for ambient

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contents SEPTEMBER 2020

UP FRONT 4 EDITOR’S NOTE 6 INDUSTRY NEWS

SPECIAL FEATURES 10 HEALTH & BEAUTY TRENDS

12 DELICIOUS DRINKS Category insights 20 CLEAN, GREEN & LOCAL Eco-friendly cleaning and homecare products 22 WASTE MANAGEMENT & RECYCLING

REGULARS 8 BEST IN SEASON Fresh produce update 16 KANTAR Empowering agile innovation in Level ‘Life’ 18 MORE DATA IS MAGIC INGREDIENT FOR FOODSTUFFS SUPPLIERS

19 PROFILE Surge SMC Ltd – A new voyage begins 21 WHAT’S HOT New products in store

GOOD BUSINESS 26 INDUSTRY NEWS AND INSIGHTS 29 JAMES & WELLS Social media influencers – a mixture of risk and reward

30 ENERGI How can you influence your customers? Lew Bentley explains. 32 FGC New Zealand needs a new nutrition survey 33 LEGAL ADVICE Coronavirus: Contractual Considerations 34 EXPORT Māori honey business adapts to new norm 35 NZ’S FIRST FOOD WASTE-TOBIOENERGY FACILITY 43 OUT & ABOUT Our people at work and events around the country

EVENTS 36 JOIN US AT THE FMCG BUSINESS MARKETING SUMMIT! 35 WHAT’S ON Events for your diary 38 C&I EXPO

DRINKS 40 BIG MILESTONE FOR GRAHAM NORTON AND INVIVO 41 WORLD’S MOST VALUABLE BRANDS REVEALED 42 PROFILE Honestbrew finds solution for keeping packaging and shipping costs down

FMCG BUSINESS - SEPTEMBER 2020

[ editorial ]

ADAPTING TO A NEW REALITY The COVID-19 pandemic is still affecting us all. New Zealand’s team of 5 million achieved a remarkable result with the first Lockdown earlier this year: more than 100 days of no community transmission. However, this was abruptly punctuated with COVID-19 resurfacing in the community in August, with restrictions and social distancing returning once again. Pandemic news updates from all over the world highlight the uncertain environment we still find ourselves in. Markets and consumers are now living with the new COVID-19 reality, and businesses are trying to adapt to the changing global economy with varying levels of success. To help you with some of these new challenges, the Steindle Williams team gives advice on legal matters on pg 33, whether negotiating new contracts or reviewing existing contracts. We take a close look at innovations in recycling and waste management, reveal Health & Wellness trends, and bring you the latest product launches. Remedy for example, are shaking the soft drink aisle up with the launch of their new 1.25L Kombucha take home packs, as seen on our cover. Shoppers are shifting their behaviour to buying more multi-serve packs to minimise supermarket trips. Remedy’s early trial of their 1.25L pack proved that shoppers responded well to this pack size, as they were looking to stock up the pantry. You will find more trends to watch and industry news, advice and commentary from our team of top industry experts in every issue of FMCG Business. Subscribe to our weekly updates via www.fmcgbusiness.co.nz and join our daily conversations on Facebook, Twitter and Instagram. We’d love to hear from you! We may be facing unprecedented challenges right now, but how we respond and adapt will ultimately define us. The best way to predict the future is to create it. Look after yourself and your team and stay safe.

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

PUBLISHED BY C&I Media (NZ) Ltd PO Box 109 342 Newmarket, Auckland 1149 MANAGING DIRECTOR Simon Grover COMMERCIAL DIRECTOR Safa de Valois safa@c-store.com.au EDITORIAL DIRECTOR James Wells james@intermedia.com.au HEAD OF CONTENT Tamara Rubanowski trubanowski@intermedianz.co.nz ph: 027 278 4761 NATIONAL SALES MANAGER Vicky Bennett vbennett@intermedianz.co.nz ph: 021 626 115 SALES DIRECTOR Wendy Steele wsteele@intermedianz.co.nz ph: 021 300 473 ART DIRECTOR Leanne Hogbin leanne@intermedia.com.au PRODUCTION MANAGER Jacqui Cooper jacqui@intermedia.com.au PUBLISHING ASSISTANT Eclypse Lee elee@intermedianz.co.nz SUBSCRIPTION ENQUIRIES Eclypse Lee elee@intermedianz.co.nz 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. The wrapping used in the delivery process of this magazine is biodegradable. ISSN 2382-1663

ON THE COVER Remedy are shaking the soft drink aisle up for good with the launch of their NEW 1.25L Kombucha take home packs! Find out all the details on pg 12.

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FMCG BUSINESS - SEPTEMBER 2020

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 © 2020 - C&I Media (NZ) Ltd

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[ news ]

HOW TO OPERATE SAFELY DURING COVID ALERTS The Ministry of Business, Innovation and Employment has issued the following advice for operating safely in Alert Level 2 and Alert Level 3 in New Zealand. The Ministry is reinforcing that most businesses can operate but that safe working practices are critical to operating within Alert Level 2 and Alert Level 3 and that businesses

The only exceptions for customers to enter premises are supermarkets, dairies, petrol stations, pharmacies, licensing trusts, and permitted health services. However, these businesses must manage the number of customers to ensure physical distancing can be maintained. In smaller premises, such as dairies, this may require a one in one out policy.

must self-assess what they need to Under Alert Level 2, customers may do to mitigate the risk of COVID-19 enter premises provided measures are transmission. taken to ensure the safety of customers Under Alert Level 2 and Alert and workers and that the risk of Level 3 there is no distinction COVID-19 transmission is managed. between essential and non-essential At Alert Level 2 there are specific businesses. restrictions in place for hospitality Under Alert Level 2 and Alert Level businesses, including keeping groups 3, businesses should take active steps of attendees seated and separated 1 to mitigate the risk of COVID-19 metre apart, and served by a single All businesses must display a government issued QR code transmission, just as they would do person. More information on these normally with any other risk under the rules are on www.business.govt.nz . Health and Safety at Work Act. At Alert Level 3 everyone should work All businesses must display a government issued QR code for use from home if they can. with the NZ COVID Tracer App and have systems in place to support The key difference between Alert Level 2 and Alert Level 3 is that in contact tracing. Alert Level 3 customers must not enter the premises of most businesses. For any business that needs support to cover leave of employees who In Alert Level 3, interactions with customers must be contactless, can’t come into work because Ministry of Health guidelines recommend including for ordering, payment, and pick-up or delivery. At Alert Level they stay at home, and can’t work from home, can access the COVID-19 3, business cannot offer services that involve close physical contact, for Leave Support Scheme via the Work and Income website. https://www. example hairdressing. workandincome.govt.nz/covid-19/leave-support-scheme/index.html

NEW MILK WITH COLLAGEN A FIRST FOR NEW ZEALAND Lewis Road Creamery, in collaboration with leading collagen brand Jeuneora, is releasing Lewis Road Creamery Jersey Milk with Collagen. A first in New Zealand, this innovative combination of fresh white milk and collagen means it’s easier than ever to get your regular collagen fix as part of your normal daily routine, by simply pouring the milk on your muesli or into your tea and coffee. The bovine collagen, that specifically supports joint health and optimum mobility, is added to Lewis Road’s Homogenised Jersey Milk before it is pasteurised and bottled. With no impact on taste and texture, the milk has the same smooth, rich and creamy taste as its collagen-free counterpart. A single 250ml serve contains 5gm of collagen - the recommended daily dose for the specific collagen used in the milk.

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FMCG BUSINESS - SEPTEMBER 2020

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[ news ]

FIRST CLOSED-LOOP PACKAGING RETURN PROGRAMME FOR NZ Leaders in sustainability, home and body care company ecostore has announced a Permanent Bottle Recall. The initiative calls on Kiwi customers to return all of its bottles to one of more than 100 collection points across the country after use. The move is not due to a product or packaging fault, rather it is a response to the urgent need to take pressure off Aotearoa’s overwhelmed waste and recycling system. Ecostore will collect, process and remake the bottles, all here in Aotearoa. The programme is helped through support from the Ministry for the Environment’s Waste Minimisation Fund. Initial funding from the government will be used in Tamaki Makaurau. Ecostore is committed to taking it nationwide so is funding the remainder of the programme. The average New Zealand household uses 941 plastic containers or bottles a year, amounting to a staggering 1.76 billion plastic containers disposed of around the country annually. Right now, 39% of recyclable plastic across the board in New Zealand goes directly to landfill and much of the 61% that goes into the recycling system is sent overseas. Jemma Whiten, ecostore Group Marketing Director, says the system can’t cope and it’s time for businesses to lead the way and be part of the solution. To find out more about the Permanent Bottle Recall visit recall.ecostore.com

BLEND MEAT WITH MUSHROOMS FOR ALL ROUND BETTER MEALS The Big Blend is here to help the meat-loving, mushroommunching masses of New Zealand make their meals better in one easy step.

One of the best things about blending is it’s just fine-tuning your favourite meals — so no new fancy techniques needed.

Just blend meat with mushrooms.

Simply swap a portion of mince with finely chopped mushrooms. Or add them, to make your mince go further.

It really is that simple. Just by blending mushrooms in with your mince, you can create better value, more nutritious, more delicious and more sustainable versions of your everyday favourites — without overwhelming them with mushroom flavour, either.

Discover more ways to blend for better with mushrooms at meadowmushrooms.co.nz/big-blend

BLENDED MEATBALLS Serves 4 | Prep 20 minutes | Cook 10 minutes

500g 30/70 Meadow Mushrooms & beef mince blend 1 and a half cups/ 75g fresh breadcrumbs Half onion, grated 1 egg, beaten 1 tablespoon Worcestershire sauce 2 tablespoons finely chopped parsley 1 teaspoon salt Half teaspoon freshly ground black pepper

1. Finely chop the mushrooms (or blitz in the blender) to replicate mince, then combine with mince, onion, breadcrumbs, egg, parsley, Worcestershire sauce, salt and pepper in a bowl mixing well with your hands. 2. Shape into golf ball sized balls. Should make around 20. 3. To cook, fry in a pan with olive oil for about 5 minutes, until cooked through.

Tip: 100g = 1 cup finely chopped mushrooms

[ fresh produce ]

BEST IN SEASON New Zealand citrus including Navel oranges, lemons, tangelos and grapefruit are all in good supply this month. Afourer and Encore mandarins, which are both popular and easy to peel, are also becoming available.

Avocados

“GRAPEFRUIT ARE A GOOD SOURCE OF VITAMIN C TO SUPPORT HEALTHY IMMUNITY”

Avocados are delicious, versatile and packed with almost 20 vitamins, nutrients and phytonutrients. Their popularity has been rising for some time and the industry’s vision is to quadruple sales to $280m and triple productivity by 2023. The main avocado season runs from August to February, however smaller volumes are available outside this time. What to look for: Bright green Hass avocados should not be displayed until they are olive green. Less than 20% of your display should be olive green with 80-90% of it being brown/green to purple/ brown. Do not display black avocados as they are overripe. The skin of a Reed avocado will stay green when ripe, unlike a Hass avocado. Storage/handling: Avocados need to be ripened at room temperature, then stored in the refrigerator. They bruise easily, so handle carefully. 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 dietary fibre which supports digestive health, vitamin B6 which is essential for use of protein by the body and folate to help fight fatigue.

Grapefruit From the citrus family, grapefruit are semi-sweet, tangy, refreshing and often eaten at breakfast time. They have many of the same health benefits as their relative, the ever-popular orange and are available from May to January. Main varieties grown in New Zealand include the Morrison Seedless, which are large and golden, and the Star Ruby which has a magnificent red flesh. 8

FMCG BUSINESS - SEPTEMBER 2020

What to look for: Choose fruit with smooth skins that are plump and heavy for their size. Storage/handling: Grapefruit can be stored at room temperature, out of direct sunlight for one week, but if kept refrigerated their vitamin content will be preserved and they will last much longer. Nutrition: Grapefruit are a good source of vitamin C to support healthy immunity, skin, gums and teeth. They are also a source of folate, important for making healthy blood.

Fresh herbs The popularity of fresh herbs is growing faster than ever with the quest for natural flavours in an increasing plant-based diet world. Herbs naturally flourish and are abundant in spring, however due to hydroponics and state-of-the-art glasshouses, most herbs are available all year-round. Popular varieties include mint, coriander, basil and parsley but there is a large range available including dill, chives, thyme, sage and oregano to name a few. What to look for: Leaves should look bright, fresh and unwilted with crisp stems. Fresh herbs have a strong but pleasant aroma. To keep your stock as fresh as possible, order small quantities regularly. Offer a range of different varieties to keep your stand interesting. Storage/handling: A large selection of fresh herbs now come pre-cut and packaged for convenience – it is essential to keep these refrigerated. Potted herbs will have been well-watered before being dispatched to you, so you shouldn’t need to water them if you are ordering small quantities often and turning your stock over.

Join us on

www.unitedfresh.co.nz

New Zealand’s #1 Producer of Genuine UMF ™ Mānuka Honey New Marketing Campaign, Launching 2020-21 Comvita is focused on driving category growth for premium New Zealand honey, led by genuine UMF certified Mānuka. As a trusted source for real Mānuka honey, Comvita is launching a new communication strategy to engage Kiwi families to “get more Mànuka goodness” in their day. This national integrated campaign will include PR, social, outdoor, print and digital media, along with in-store POS and training support for customers.

Bee Aware Month, September 2020

Comvita Announces New Partnership with Global Wildlife Charity

Comvita has been at the forefront of the New Zealand beekeeping industry for 46 years and is committed to ensuring the sustainability of our industry, and to giving back to our community.

Comvita has joined forces with NZ-registered wildlife charity ‘Saving the Wild’ on a mission to protect nature in need. Kaitiakitanga is of crucial importance to our organization and within our communities, so Comvita and Saving the Wild will work together as guardians of the land to find holistic solutions to empower communities to look after nature.

Every year in September we celebrate “Bee Aware Month” and the start of the NZ honey season! Bee Aware Month is a national education campaign run by ApiNZ to raise public awareness of the role and importance of bees, and to encourage Kiwis to take actions to improve bee health. This year we are asking Kiwis to “Bee A Hero” by taking action to ensure our littlest heroes (bees) are thriving in their environment. To find out what we have planned for Bee Aware Month 2020, visit comvita.co.nz/beeaware.

To learn more about this powerful new partnership, visit comvita.co.nz/savingthewild

Now distributed by Wilson Consumer Products For trade enquiries, please contact 0800 651 044

HEALTH & BEAUTY TRENDS Innovations in skincare, personal care and haircare drive sales. Glow Lab brings new customers to the supermarket skincare aisle Launched three years ago, Glow Lab has redefined skincare in supermarkets with a distinct point of difference; combining natural ingredients with scientifically proven, active ingredients to deliver natural products that work and are affordable too, says Fenella Brown Glow Lab Brand Manager, Earthwise Group Ltd. “The brand now makes up 25% share of the total Natural Skincare category delivering incremental value through trading up mainstream supermarket consumers AND attracting new consumers to the supermarket skincare aisle,” says Brown. “The launch of sub brand Glow Lab Age Renew 15 months ago, capitalised on two key growth areas in skincare – natural and anti-ageing. Glow Lab Age Renew generated $1.4m in value sales in its first year alone and accounted for over 50% of the total natural skincare category growth within NZ Grocery. A truly incremental brand extension with the original Glow Lab skincare range continuing to grow +5.4%*.” The range has been a hit with consumers too “Normally I use Clarins or Elizabeth Arden, Glow Lab Age Renew really surprised me. After using all the range, not only can I feel the difference I can see it” – Catherine S. Facebook This September sees the introduction of two new products to the Glow Lab Age Renew® range. Brown explains the “NEW Glow Lab Age Renew® Retinol* Booster Oil 20ml harnesses the power of Bakuchiol, a breakthrough ingredient that has been clinically proven to mimic the effects of Retinol, reducing the appearance of fine lines, wrinkles, and pigmentation without the associated irritating side effects. While the NEW dual action Age Renew® Resurfacing Cleanser 100ml is formulated with Alpha and Beta Hydroxy Acids, for a smoother, brighter complexion without the use of rough exfoliants. Both new additions have been specifically developed to drive channel switch and give supermarkets a range of products that compete with pharmacy and department stores.” *Total Grocery Natural Skincare Dollars Growth latest MAT to 03/05/20.

FMCG BUSINESS - SEPTEMBER 2020

Only Good With 100% naturally derived ingredients and uplifting botanicals, Only Good will delight the senses with products that are gentle, yet effective. Only Good helps shoppers to embrace a kinder way of cleansing and caring for their skin, formulated to be gentler for all skin types. Kind on the environment too, the entire Only Good portfolio is free from Palm Oil, cruelty free (not tested on animals), and made right here in New Zealand. “We believe Only Good is the leader in Natural personal care,” says Stacey Solomon, Senior Brand Manager for API Consumer Brands. “The brand name stands for what it claims: nothing added that isn’t good for you and your family.” Solomon says: “We actively choose not to use Palm Oil in all our products, a stance that’s relatively unique in the Personal Care category – you’d be surprised how many products use Palm in some or all of their range! Leaving it out completely is our commitment.” Launched in 2015, the Only Good range began with natural hand wash and body wash products before expanding with Bar Soaps, Natural Deodorants and an amazing range of Baby Products. Now with all four hand washes in the Top 15 products of the 0-500ml hand wash category*, Only Good has happily become a household name for Kiwi consumers. *Total Grocery Hand Wash 0-500ml Value MAT 02/08/20

Only Good Hand Wash With four fragrances in the Only Good 300ml hand wash range, there is something to suit every household, and each with a 600ml refill also! Protect: Pear, Manukau Honey and Calendula Refresh: Mint, Lime and Sage Nourish: Coconut and Shea Butter Soothe: Rosehip, Marshmallow and Elderflower Only Good Natural Deodorant “Using Natural deodorant is a process for our bodies. It starts with clearing pores, before repairing cells” explains Stacey. “Natural deodorant is less likely to block pores, allowing your body’s natural detoxification

[ category insights ] MONDAY’s accessible luxury products

process. Only Good uses the power of ODOURCO™ to deodorise – so while you will still sweat (as we were made to do!) you won’t smell.” The deodorants contain no aluminium salts, parabens or colours, and as always, are proudly Palm Oil free. Only Good Natural Deodorant has four unique fragrances to choose from: Inspire: Honeysuckle and Elderflower Bliss: Rosehip and Marshmallow Restore: Manuka Honey and Calendula Captivate: Orange, Basil and Lime

Source: NIELSEN SCANTRACK Total Supermarkets - MAT 09/08/20 T. COSMETICS

“A pioneer in the BEAUTY ACCESSORIES personal beauty EYE COSMETICS category and delivering FACE COSMETICS an accessible, luxury LIP COSMETICS product since bursting onto the scene back in NAIL COSMETICS mid-April, MONDAY OTHER COSMETICS Haircare has taken New T. DEFINED FACIAL Zealand by storm,” says MOISTURISER Tim Campbell, Category CLEANSER Manager at Foodstuffs. OTHER TYPES Exclusive to New WIPE World, PAK’nSAVE and Four Square MALE GROOMING stores, MONDAY SKIN MEDICATION serendipitously launched SERUMS & EYE CREAMS as the country navigated TONER Alert Level 4 lockdown. T. PERSONAL WASH “The perfect timing BODYWASH & SHOWER GEL of events paid off for LIQUID HANDWASH the brand as salons were SOLID SOAP closed under lockdown restrictions, but New HAND SANITIZERS Zealanders were keen BATH ADDITIVES to keep up with their haircare regimen and give their hair an added boost for a fraction of the cost,” says Campbell.

Val $ Sales (‘000)

Val % Chg YA

16,782.1

9.2%

6,095.3

20.0%

5,254.6

5.6%

4,340.0

1.5%

917.2

5.9%

166.3

7.8%

8.8

7.7%

78,049.6

4.0%

32,824.9

7.2%

12,082.9

3.7%

8,906.3

8.2%

8,278.2

-7.3%

5,101.6

11.9%

4,985.6

-10.8%

4,432.4

11.0%

1,437.8

-2.4%

123,796.3

18.9%

50,108.0

7.5%

34,175.5

30.3%

27,524.8

6.6%

9,487.5

196.2%

2,500.6

11.7%

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

Find out more at onlygood.co.nz or follow us @onlygoodnz

OG FMCG third page ad FIN.indd 1

FMCG BUSINESS - SEPTEMBER 2020 11 20/08/20 10:11 AM

DELICIOUS DRINKS Discover whatâ&#x20AC;&#x2122;s new and popular right now.

[ category insights ] The cold drink category continues to be a source of new and innovative products for consumers. Category Manager at Foodstuffs, Jon O’Brien finds the latest innovation is ready-to-drink coffee. After proving popular in Japan, Boss Coffee hit New Zealand shelves earlier this year. Available across Foodstuffs stores, customers can choose between Boss Iced Latte Flash Brew and Boss Iced Long Black Flash Brew Drinks, delivering New Zealanders their caffeine fix at home, on the go, or in the office. Another trend O’Brien has noticed is that customers are increasingly turning to ‘better for me’ beverages as they prioritize their health and wellbeing. “Within the category, sparkling water is proving popular with sales up 16.2%. Brands such as Vista, La Croix and New Zealand Natural are getting snapped up by customers as they are looking for a refreshing and healthy drink to quench their thirst,” says O’Brien.

“NEVER HAS THERE BEEN A TIME WHERE WE ARE IN MORE NEED OF EASY, NATURAL SOLUTIONS TO IMPROVE AND PROTECT OUR HEALTH.” JEMIMA BRIGGS, GM SALES AND MARKETING AT RED SHOOTS

Remedy Remedy are shaking the soft drink aisle up for good with the launch of their NEW 1.25L Kombucha take home packs, as seen on the cover of this issue! Now available in New Zealand in three of their top-selling fave flavours: Raspberry Lemonade, Ginger Lemon and Peach. “Trends are showing that shoppers right now, more than ever, are shifting their behaviour to buying more multi-serve packs to minimise supermarket trips. Remedy’s early trial of their 1.25L pack proved couples and families pining for this pack size, making it the perfect addition to your ambient aisle shelf as they look to stock up the pantry,” says Deva Dhar, Remedy Drinks Country Manager -New Zealand. He adds: “Remedy Kombucha is a-ok in and out of the fridge due to their traditional 30 day, long-aged brew process, which results in a delicious kombucha with no sugar, naturally and full of the right stuff:

including strong and healthy live cultures, organic acids and tea polyphenols. Whether your customers are looking to start sipping straight away or save some goodness for later, it’s fizzy fun for everyone!” For all sales enquiries please contact Deva Dhar, Country Manager for Remedy Drinks on: Ph: +64 21 245 2363, E: deva.dhar@remedydrinks.com, W: www.remedydrinks.com

Daily Good Everyone is busy! “We run, we attend meetings, we collect kids, we cook dinner, we drink coffee, we try to buy organic, we eat donuts,” says Jemima Briggs, GM Sales and Marketing at Red Shoots. “Somewhere in all the above, our health is a priority and never has there been a time where we are in more need of easy, natural solutions to improve and protect our health. Introducing our 2 new Ginger and Turmeric focused brands – Daily Good Tonics and Just Fresh Co. Juices.

“REMEDY ARE SHAKING THE SOFT DRINK AISLE UP FOR GOOD WITH THE LAUNCH OF THEIR NEW 1.25L KOMBUCHA TAKE HOME PACKS!” FMCG BUSINESS - SEPTEMBER 2020

[ category insights ]

“THE KIND OF UGLY FRUIT WE INCORPORATE INTO OUR BEVERAGES INCLUDES NAVEL ORANGES, MANDARINS, TANGELOS AND ALL SORTS OF VARIETIES OF APPLES”

Daily Good is the daily health warrior. It is a range of delicious infusions packed full of organic, superhero ingredients, created by a team of Kiwi innovators working from their respective bubbles during lockdown. They make the most of the amazing ingredients from Red Shoots’ sustainable partner farm in Fiji, Ranadi Organics, and are made right here in NZ. The team only puts the good stuff in, nothing else – no fillers, no concentrates, no extracts and no preservatives – just whole ingredient goodness and the associated health benefits. The tonics are not an RTD product but instead a weekly dosing bottle containing 7 shots. The three variants contain organic ginger, organic turmeric, organic apple cider vinegar, organic manuka honey, organic blackcurrants and more! Just Fresh Co.brand launch sees an extension to the very successful Lemonfresh brand which now includes Ginger and Turmeric juice. These easy-to-use pouches contain nothing but juice and have countless uses in cooking, hot beverages, smoothies, or juices. Just open, pour, close and refrigerate. Done!

Ugly doesn’t compromise quality and taste Like so many things, it’s not what’s on the outside, it’s what’s on the inside that counts. It’s a saying that rings true for Hawke’s Bay-based beverage company, Simply Squeezed. They blend and squeeze “ugly” fruit with “pretty” fruit to create great-tasting juices and smoothies, and save more than 4,000 tonnes of fruit – that’s packed full of goodness but not so appealing to the eyes – going to landfill. Simply Squeezed has been using ugly fruit to create their beverages since the company’s inception in the early 90s, as a way to reduce waste from going to landfill and turn it into something delicious. Ugly fruit has the same taste as pretty fruit – or those found mainly on supermarket shelves. The only difference between the two is that ugly fruit may not have the colour, size or reflect the shape supermarkets and stalls are after. Fruit we term “ugly” looks a little bit different: it’s usually too big, small, a funny shape or the wrong colour for export or market. And sometimes it could just be that the orchard does not have a market

FMCG BUSINESS - SEPTEMBER 2020

for it, explains Simply Squeezed sourcing specialist Jonathan Crawley. “Sure, the ugly fruit may come in looking a little different, but the taste and quality that’s squeezed out of them isn’t compromised. “The kind of ugly fruit we incorporate into our beverages includes navel oranges, mandarins, tangelos and all sorts of varieties of apples from around Hawke’s Bay and the East Coast. The amount we get very much depends on the time of year, season or weather events.” Simply Squeezed blending team leader, James Calder says “ugly” fruit is not processed differently. “If it is too big, small or unable to be juiced it will be graded out to avoid blocking the juicing equipment, and added to the pile that goes for stock food. “But of course, if a fruit isn’t up to the quality standard and taste our customers expect from us, then we send it to our food stock or suppliers to distribute it to other businesses.” Even after the fruit has been squeezed and pulped, there’s still approximately 20% to 40% of it left over. So to ensure as much of the fruit is used as possible, Simply Squeezed has established relationships with distributors who on-sell the peel and other edible remnants to other food suppliers. It’s another great way to reduce waste going to landfill and improve the company’s environmental footprint, says Simply Squeezed Senior Product Developer Kirin Harrison. Simply Squeezed is available from 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.

Karma Juice — Every Drink Does Good Refreshing, revitalizing, and so scrumptious you could slurp em’ all back in one go, Karma Drinks have released an organic range of do-gooding juices that taste just as fruity as they make you feel. The delicious new certified organic Karma Juice range comes in six sensational flavours, featuring a couple of classics, plus some with an innovative Karma twist. • Carrot, Orange & Turmeric • Apple, Guava & Passionfruit • Apple, Blackcurrant & Raspberry • Orange • Apple • Orange, Apple & Mango All served in a sustainable glass bottle, the Karma Juice range is proudly BioGro certified organic, and made right here in Aotearoa. It contains no preservatives, GMO’s or any nasties, says a spokesperson.

[ category insights ]

And it’s not just good for you – it’s good for other people too. When you buy a Karma Juice, you’re helping contribute to The Karma Foundation and the work they do to support the people producing their ingredients, and looking after our planet. The 100% Kiwi owned company says it is seriously proud to be supporting local people and the local economy.

Trends at Countdown Kiwis drank a lot of coffee over the earlier lockdown and this also included a lot of iced coffee due to

the warm weather, says Steve Mills, General Manager Merchandise at Countdown. “We think iced coffee will be one of the trends of the upcoming summer.” Mills adds: “Sales of single-serve cold drinks dropped whilst larger drink sizes increased, most likely because customers were limiting their visits to the supermarket over lockdown and were at home rather than enjoying their drinks out and about. We’ve seen double digit growth on two-litre orange juice as more people continue to work from home. “Kombucha sales have flattened after being the golden child of drinks for several years. Customers are now searching for products with functional benefits such as immunity, vitamins, and supplements or superfoods such as the new Charlie’s Hemp Protein Smoothies,” says Mills.

“ALL SERVED IN A SUSTAINABLE GLASS BOTTLE, THE KARMA JUICE RANGE IS PROUDLY BIOGRO CERTIFIED ORGANIC, AND MADE RIGHT HERE IN AOTEAROA”

Source: NIELSEN SCANTRACK Total Supermarkets - MAT 09/08/20 Val $ Sales

Val % Chg YA

T. ALL BEVERAGES

823,668.2

7.2%

CARBONATED SOFT DRINKS

386,814.2

10.7%

FRUIT JUICE AND DRINKS

125,332.6

1.6%

RTD ENERGY BEVERAGES

104,946.5

3.7%

WATER

101,894.7

1.4%

CORDIALS

28,939.7

11.6%

RTD OTHER BEVERAGES

27,383.0

18.1%

SPORTS LIFESTYLE

25,705.3

-0.1%

PRESWEETENED POWDERED BEVERAGES

16,813.7

13.4%

SODA SYRUPS

2,829.4

50.6%

SPORTS DRINKS

2,674.8

24.9%

NON RTD NEW AGE BEVERAGES

334.4

8.0%

Iced coffee will be one of the trends of the upcoming summer

FMCG BUSINESS - SEPTEMBER 2020

[ profile ]

EMPOWERING AGILE INNOVATION IN LEVEL ‘LIFE’ The COVID-19 pandemic has created unprecedented uncertainty for New Zealanders and New Zealand business as we have adjusted to living under ‘levels’. Businesses and organisations have had to adapt to this unique situation on the fly with no ‘COVID-19’ playbook available for businesses to turn to. It’s been a fascinating observation of innovation and operational agility – we’ve seen whitetablecloth restaurants adapt to become takeaway providers and supermarkets gear their businesses towards online shopping and delivery with pace. These examples illustrate that businesses with a finger on the pulse of consumer needs and the ability to respond quickly are best placed to be resilient in these uncertain times – helping them to secure not only the short term survival of their businesses, but also future proofing their innovation pipelines by being adaptable to changing shifts in consumer values, attitudes and behaviours. We know many new products fail within their first 12 months after launch – underpinning the importance of identifying and nurturing the right concepts early. Innovation doesn’t have to mean drastic changes but prioritising your focus on understanding changing consumer needs will help your business focus its efforts on the right areas. We can only predict which of the ‘new’ consumer behaviours and attitudes will remain as we move through continued ‘Level Life’ -

“SUCCESSFUL INNOVATION IS MORE THAN JUST CREATING PRODUCTS. IT’S ABOUT DELIVERING MEMORABLE AND DIFFERENTIATING EXPERIENCES THAT ARE ANCHORED IN A DEEP UNDERSTANDING OF PEOPLE, AND THE TENSIONS AND NEEDS THEY HAVE IN SPECIFIC MOMENTS” JASON SHOEBRIDGE, KANTAR NZ CEO 16

FMCG BUSINESS - SEPTEMBER 2020

ultimately businesses must identify and monitor changing consumer behaviours to be best placed to capitalise through innovation. Some behaviours and attitudes may continue, others will return to the pre-COVID default.

Our advice: 1. Understand how changing consumer behaviour will influence future purchase intent 2. Stay close to the touchpoints with the strongest influence on the choices your consumers are making 3. New lifestyle shifts will impact certain industries, so keep an eye on that influence 4. Don’t lose your focus on innovation – now is the time to re-commit to your central purpose It’s never been more important to put people at the heart of your innovation and product development lifecycle, and it’s never been more important to do this at pace. Kantar has quick turnaround solutions that allow you to test and learn cost effectively. Introducing Concept eValuate, available on Kantar Marketplace, which enables you to identify the best ideas and fine tune high-potential concepts within days. With double the accuracy of traditional concept testing approaches, Concept eValuate is the best tool to ensure you create winning products and services.

Concept eValuate helps you: – Make informed innovation decisions based on trial and growth potential – Discover which concepts generate strong consumer interest and which aspects of concepts appeal (or don’t) to consumers – Identify concepts with the most top-line growth potential through understanding the impact on not only your brand but also your broader business portfolio (i.e. cannibalisation effects) – Prioritise, diagnose, and optimise your concepts with in-depth diagnostics, with an option to include volumetric forecasting, price sensitivity and category growth measurement Concept eValuate joins our suite of cost effective and quick turnaround solutions on the recently launched Kantar Marketplace platform including: – LinkNow – Test your digital, static or TV ad to maximise ROI – Pack eValuate – Helping you identify the best packaging for your brand – Idea eValuate – Screen your early ideas to prioritise and feed into concept development Kantar Marketplace products are available now from Kantar New Zealand and Colmar Brunton, a Kantar company. To register for a demo of Concept eValuate or our other Marketplace tools contact: infonz@kantar.com or info@colmarbrunton.co.nz www.kantar.com/marketplace

[ feature ]

MORE DATA IS MAGIC INGREDIENT

FOR FOODSTUFFS SUPPLIERS Ana Connor has a message for suppliers: “give us your nutritional and ingredients data, it’ll help future proof your business!” Connor, who heads up the Master Data Operations at Foodstuffs South Island says, “initially we were very supply chain focussed with the use of our supplier product data. Right product, right place, right time, right price was a great place to start, but with more information at our fingertips, there are so many more opportunities ahead for Foodstuffs suppliers.” An increasing customer desire for food inspiration, cooking at home, wanting to know more about the provenance of our food - and what it contains; is at the heart of Foodstuffs’ drive to encourage all their suppliers to proactively supply nutritional and ingredients information about their products. “More and more customers are basing their buying decisions on what’s in the product, or increasingly what’s been deliberately left out, so we’re anticipating making nutritional and ingredients information searchable on-line will be the next big customer need and ultimately expectation. It makes sense for us to get ahead of that need and deliver on this together,” says Connor. Reasons for customers who want access to nutritional and ingredients information are varied, eating regimes like keto and low carb are becoming increasingly popular; and with one in nine New Zealand households having a person with a food intolerance or allergy, making the wrong purchasing decision when it comes to ingredients can have unpleasant, or even life-threatening consequences. The recent lockdowns due to COVID-19 have provided more potential for supplier data says Connor. “With customers spending more time at home, they had the space to think about meal making and wanted to experiment and try new things. We expect this trend to cook and entertain more at home to stick. Having more information about the products we sell opens up a world of possibilities, enabling us to enhance the customer experience in the future, especially in the food inspiration space.” With the pilot of on-line shopping in the pipeline for three Foodstuffs South Island stores early 2021, this is the perfect time to be encouraging suppliers to provide nutritional and ingredients data through GS1 NPC or the Foodstuffs eXchange says Connor. “Our goal is when our on-line shopping offer pilots in 2021, customers will have the convenience of having nutritional and ingredients information at their fingertips. We have no doubt having this information available will inform customer purchasing decisions, whether they’re ordering on-line or searching prior to visiting their local Foodstuffs store.” With approximately 43% of supplier nutritional and ingredients information already in their database - and a recent system change to make providing the information for new products mandatory, Connor

Ana Connor heads up the Master Data Operations at Foodstuffs South Island

is making the call for suppliers who haven’t already, to make a concerted effort to provide their product information. Suppliers can do this via the GS1 NPC ProductFlow service, or log on to Foodstuffs eXchange and complete the nutritional and ingredients fields by the end of 2020. “There are huge benefits to both supplier and retailer in making as much information about the products we’re selling available to our customer and there’s so much opportunity for the future, it’s really exciting and an extremely simple way for us both to add value to the customer experience,” says Connor. Suppliers to Foodstuffs can add product nutritional and ingredients data according to their normal product update process – either the GS1 NPC ProductFlow service, or via Products at the Foodstuffs eXchange. For support please contact the Foodstuffs supplier support team via email suppliers@foodstuffs-si.co.nz or call 0800 555 985.

“WITH MORE INFORMATION AT OUR FINGERTIPS, THERE ARE SO MANY MORE OPPORTUNITIES AHEAD”

FMCG BUSINESS - SEPTEMBER 2020

[ profile ]

SURGE SMC LTD

– A NEW VOYAGE BEGINS At Surge SMC we pride ourselves in doing the best we can for our staff, clients and customers in representing and growing business across sales channels. These are challenging times and the landscape has been turned upside down by recent events and the future remains hopeful, but uncertain. We do not see this as an excuse “not” to perform, rather an invitation to be flexible and inventive and to match supply with opportunities. The company is fresh, a result of old and new coming together with bespoke systems from the old Rothford combining in the new business to offer not only sales and merchandising, but all facets from category management to 3PL logistics and even contract manufacture.

Our focus is the health & wellbeing sectors, meeting the requirements of consumers based on the insights and research we gather in our categories and the collaboration we enjoy with retailers and suppliers in New Zealand and elsewhere. Surge SMC has an energy Tony Trilford Managing Director that is infectious – we truly love Surge SMC Ltd what we do and despite day to day frustrations we manage to maintain the levels of enthusiasm and energy required to win. We absolutely value our partnerships and honesty and as such offer practical advice and council to our clients so that they can develop their business to optimum levels. We look forward to partnering with those people that want us as part of their crew sailing forward and finding safe harbour in success.

BACK IN MARCH 1996 a new little company

excellence our pr mile for our clien was started – Rothford International Ltd., with just Now Surge SMC one client, two guys and a long way to go. Over the absolute all for our years we grew, the name morphed into Rothfords and Our focus is on we became part of the national FMCG fabric, covering the Surge. the country from Kaitaia to Invercargill. Surge SMC is From attending the SIAL Trade Fair in Paris (winning work and no excu the SIAL D’Or for Best New Product in New Zealand Surge SMC has and Best Meat Product in the world with our one and operations, exce only client back in 1998) to being voted Best Fine skilled staff. Thes Food Brokerage in the 2017 NZ Business Awards, • BACK IN MARCH 1996 a new little and we pride ours company was started – Rothford Rothfords had a proud track record. International Ltd., with just one client, and a long way clients’ to go. Overbrands, he We have Saalways focussed on being the two bestguyswith l es & M a r k e t i n g C re w the years we morphed into Rothfords and we became part of the national FMCG fabric.

What do you need and what are you not g • We have always focussed on being the best with excellence our primary goal and trying to go the extra mile for our clients. Now we are Surge SMC, we have people who give it their absolute all for our chosen partners, 100% in, no excuses!

We don’t pretend to be the right company for everyone an right ones for us – we have a strength in short shelf life, chilled and wellbeing foods. We know these areas well as this has b • Our focus is on excellence and sales momentum – the Surge. Surge SMC

is about honestperhaps people, honest you hard should If you are tired of poor results and excuses, work and no excuses – 100% in. might be the right fit going forward. IfSMC you want inus on your b • Surge has excellence bespoke What do you need and what are you not getting at present? We don’t pretend systems and operations, excellence in to be the right company for everyone and not all companies are the right ones for experienced crew – give us a call and le experience, culture and skilled staff. us – we have a strength in short shelf life, chilled, frozen and on-trend health and wellbeing foods. We know these areas well as this has been our focus for decades. If you are tired of poor results and excuses, perhaps you should have a chat and together we might be the right fit going forward. If you want us on your boat as a reliable, trusted and experienced crew – give us a call and let’s talk.

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

Surge_HPH_Sep20 fmcg.indd 1

• These things are the wind in our sails, and we pride ourselves in being the Surge behind our clients’ brands, helping breathe life into their growth.

SURGE SMC

FMCG or BUSINESS - SEPTEMBER 2020 19 Call Tony Trilford 0800 949 333 visit our website w 19/8/20 11:13 am

[ category insights ]

CLEAN, GREEN & LOCAL Eco-friendly cleaning and homecare products are top of mind right now. Following the outbreak of COVID-19, cleaning products have been picked up by shoppers at an increasing rate around the country. Ashley Miranda, Category Manager Grocery at Foodstuffs says: “With sales up 50%, customers are settling into a new and more thorough cleaning routine at home. Wipes are driving the main segment of category growth, with sales up 70%. Clean, green products are also a rising trend among consumers,” explains Miranda.

Earthwise NZ’s #1 Eco-Friendly Cleaning Brand - Effective, Naturally “Earthwise is the #1 eco-friendly cleaning brand in New Zealand, with retail sales exceeding $20m, and over 49% share of environmental cleaning NZ Grocery,” says Nina Kim from Marketing at Earthwise. “The brand continues very strong growth of over 20% and is contributing over 85% of total environmental cleaning growth1.” “Sustainability is at the heart of everything we do, Earthwise recently being recognised as the NZ Brand most committed to reducing their environmental impact, and NZ’s third most favourite brand overall2.” Kim explains: “Sustainability is a movement not a trend, consumers are increasingly looking for cleaning products, free of harsh chemicals, that are kind to the environment, utilise sustainable packaging and are made in New Zealand. Nearly 50% of New Zealander’s are consciously looking for and switching to more sustainable brands. Earthwise provides an effective and affordable environmental cleaning solution. Consumers have recognised this, with 75% considering Earthwise a leader in sustainability3.” “We believe switching to true eco-friendly products shouldn’t cost the earth (planet and pocket). Earthwise products are made in our Environmental Choice Certified factory, using plant-based biodegradable ingredients and free from harsh chemicals. Over the past 18 months, we have reused and diverted approximately 500 tonnes of plastic from landfill, moving to bottles made from at least 75% recycled plastic,” says Kim. New to the Earthwise household cleaning range are Earthwise PlantPowered Multi Purpose Wipes 40s, an effective eco-friendly option. Made from 100% bamboo fibres, the wipes are compostable and kill 99.9% of germs. Available now in two variants - Lemon and Citrus. 1 Source: IRI Total NZ Grocery MAT Value Sales to 28/06/2020 2 Source: Opinion Compare, The Kiwi Reputation Index 3 Source: Colmar Brunton study (Feb 2020)

Source: NIELSEN SCANTRACK Total Supermarkets - MAT 09/08/20 Val $ Sales (‘000)

Val % Chg YA

T. HOUSEHOLD CLEANERS

85,517.0

20.8%

ALL PURPOSE CLEANER

20,709.6

24.3%

HOUSEHOLD CLEANING WIPES

12,245.3

65.7%

LIQUID BLEACHES

6,495.8

16.0%

HOUSEHOLD SCOURING AGENTS

5,757.0

7.0%

DISINFECTANT

5,548.2

33.0%

CARPET CLEANERS

4,235.6

-0.5%

CARPET DEODORISERS

4,057.2

7.3%

MOULD TREATMENTS

3,696.0

11.7%

BATHROOM CLEANER

3,661.9

19.1%

SHOWER CLEANER

3,562.2

8.6%

WINDOW CLEANERS

3,418.3

9.5%

DRAIN CLEANERS

2,520.5

17.3%

FURNITURE POLISH

2,158.3

-0.4%

OVEN CLEANERS

2,097.8

14.1%

FLOOR CLEANER

1,828.4

6.2%

DEGREASERS

1,044.2

35.8%

KITCHEN CLEANER

946.6

59.1%

METAL POLISHES

848.0

-0.6%

VITROCERAMICS

518.3

3.3%

OUTDOOR CLEANER

99.2

27.9%

FABRIC PROTECTORS

68.5

1.1%

FMCG BUSINESS - SEPTEMBER 2020

Essano Keratin 2 Minute Hair Repair Mask

Award Winning Hot Chocolate Premium brands are driving category growth: Increase your category size with QUARTERPAST’s double award winning drinking chocolate range! Decadent and with high concentrations of cocoa, our hot chocolates come in liquid form - like nothing else in market! Easy to use: add to hot milk, cold milk, ice cream, or coffees! Available in four Kiwi flavours. sales@quarterpast.com

Time poor consumers demanding powerful salon treatments from home need look no further. essano has launched a 2-minute mask infused with Keratin to repair damage and rebuild hair strength for smooth, healthy locks. Consumer insights are behind the development of this exciting, new format that has strong shelf presence and is easy-to-use in the shower. hello@essano.co.nz

Join The Plastic Free Revolution With LilyBee LilyBee Wrap is changing the world of food storage and helping Kiwis turn their good intentions into actions. The bestselling beeswax wraps, snack and sandwich bags are 100% natural, reusable, compostable and are as beautiful as they are effective. Easy to use, they are a simple switch from plastic cling wrap or bags, ideal for customers looking to make a feel good change in their lifestyle or find a great gift in store. Multichem New Zealand Ltd Phone 64 9 488 0330 Fax 64 9 478 3841 Orders: sales@multichem.co.nz www.multichem.co.nz

Harvest Snaps Black Bean ‘ The Healthier Tastier Snap’ Introducing our Harvest Snaps Black Bean range with a new and innovative range of flavours available to consumers. Building on the success of Pea Crisps and since the world has gone bonkers for the delicious black bean, we’ve snapped’ em and packed’em bringing them to the NZ market. Filled with wholesome, tasty goodness, Black Bean Crisps are the perfect healthier alternative to your everyday average potato chip snack. https://calbee.com.au/brands/harvest-snaps-baked-crisps/ sales@houseff.co.nz Phone 09 410 1066

Six Innovative, New Cereals from pure delish With two low carb, two high protein and two digestive health focused, the new cereals from pure delish are sure to hit the mark with consumers wanting products that align with these dietary requirements. With flavours like ‘peach, pecan & vanilla’, ‘wild berry & hemp’ and ‘pineapple & macadamia’ the new breakfast range is not only delicious but is also packed full of quality natural ingredients. www.puredelish.co.nz Phone 09 5745701 or email info@puredelish.co.nz FMCG BUSINESS - SEPTEMBER 2020

TOWARDS A BETTER FUTURE Innovations in waste management and recycling

Associate Minister for the Environment Eugenie Sage has announced new plans to phase out more single-use and problem plastics to reduce waste. The proposals are to phase-out some hard-to-recycle PVC and polystyrene packaging and oxo-degradable plastic products, and seven single-use plastic items, including plastic straws, drink stirrers, produce bags, tableware (e.g. plastic plates, bowls, cutlery) and non-compostable fruit stickers. These proposals are part of a consultation document ‘Reducing the impact of plastic on our environment’. “Plastic has become one of our generation’s greatest environmental challenges,” said Sage. “New Zealanders want urgent change in the area of plastics. We saw that with the support for banning single use plastic bags, which has meant 1.1 billion fewer plastic bags ending up in landfills or the ocean.” Sage made the announcement to kick start ecostore’s bottle recall scheme, which is being supported by a $200,000 grant from the Ministry for the Environment’s Waste Minimisation Fund. As part of its proposal, the Government has opened public consultation on the phase out of certain hard-to-recycle plastics and seven single-use plastic items. The consultation will be open until 4 November 2020. More information can be found here: https://www.mfe.govt.nz/reducing-impact-of-plastic-on-environment The Packaging Forum has welcomed the Government’s latest move to phase-out difficult to recycle and unnecessary plastic packaging. However, the Forum’s Independent Chair Rob Langford cautions that great care must be taken to avoid any unintended consequences caused by producers and retailers moving to other packaging types such as a mass shift to compostable packaging without standards, labelling and end-of-life solutions being in place. “It’s good to see there is a long consultation period for this and we’ll certainly be part of the conversation on behalf of our members,” Langford said. The Packaging Forum, with more than 200 members, is New 22

FMCG BUSINESS - SEPTEMBER 2020

Zealand’s biggest member-based organisation representing the depth and breadth of the packaging industry. While compostable packaging can be viewed by the public as something of a ‘silver bullet’, Langford warns there are also challenges with it. “For manufacturers, there is no defined use-case for compostable packaging. There is no New Zealand standard as required by the organic certified composters and few commercial composters which will accept it due to contamination, and there are varying requirements for home compostability. This makes it difficult for consumers to identify how to dispose of it at end of life.” To assist members, the Forum has a compostable packaging and a fibre-based packaging technical advisory group, which is investigating solutions for these challenges to remove the barriers for compostable packaging across the supply chain, Langford says.

Foodstuffs’ bid to innovate and repurpose waste Combating food waste through new and innovative solutions is an integral part of Foodstuffs’ waste minimisation strategy, setting out goals to 2025, says Waste Minimisation Manager Francesca Goodman-Smith.

“WE KNOW THAT 56% OF OUR WASTE IS RECYCLABLE COMMODITIES” FRANCESCA GOODMANSMITH, FOODSTUFFS’ WASTE MINIMISATION MANAGER

[ feature ] “To reduce packaging and waste through our operations, we have implemented a Waste Minimisation Programme. The programme focuses on the reduction of all materials including food waste, recyclables, and repurposing and recycling materials across our two Cooperatives, towards zero waste to landfill by 2025. To achieve this goal, we’re focused on significantly reducing the total volume of waste; accessibility of waste data; pairing all Foodstuffs sites with a food rescue organisation; and continuously helping our customers on their personal journeys to reduce food waste in their households. “We currently have 118 New World and PAK’nSAVE stores, 13 distribution centres and our corporate offices participating in our Waste Minimisation Programme, with the goal of having all stores and corporate sites onboard by 2021. The programme prioritises waste minimisation activity to reduce, reuse, repurpose, redistribute, reprocess, or recycle products otherwise destined for landfill. “Once a store or site is in the Programme, they work with one of our approved waste service providers to achieve the goal of diverting 90% of total waste from landfill. To do this systems are put in place to segregate waste into usable streams. “Sites on the Programme are currently diverting on average 85% of their waste away from landfill, which is a remarkable achievement. We know that 56% of our waste is recyclable commodities, 29% of total food waste is either reprocessed, composted or used as stock feed (83%), and 17% is donated to food rescue charities. Through these data driven insights, we are able to target problematic waste streams to drive our progress towards our 2025 goal. “Food waste at a store level is divided into two categories: Food that can’t be sold and is still fit for human consumption and food that isn’t fit for human consumption. All New World and PAK’nSAVE stores donate any excess food safe for consumption to either a local foodbank or food rescue organisation. Last year alone, we donated the equivalent of 8 million meals through our food rescue partnerships. Any food that is not fit for human consumption in its current state is used for animal feed, reprocessed into new products, or is composted. “Food waste is a growing issue, which is why many of our food suppliers are looking for creative and innovative solutions to minimise their waste. Reprocessing food waste or surplus into new products (food and non-food) is known as food ‘Upcycling’. It’s a relatively new trend set to take off and transform how we perceive food waste and what we do with it. Foodstuffs is working with a range of suppliers either by providing our food waste streams as feedstock for upcycled products or supporting suppliers of upcycled products to get shelf space in our stores. Waste reduction is currently a front-of-mind issue for many New Zealanders and Foodstuffs are striving to support New Zealand companies taking innovative approaches to tackling the issue.

The A-Ward Bramidan Baler

A-Ward’s Bramidan balers have a proven track record of clean effectiveness and help manage the challenges of reducing health and safety risks associated with contaminated waste cages for all staff, allowing more time for customers, while significantly minimising waste handling on site. Baled waste creates a high-density commodity, which can be recycled with almost zero contamination. The result is reduced need for collection vehicles required to transport the waste to recyclers, lowering the sites’ carbon footprint. New World, PAK’nSAVE and Countdown stores throughout New Zealand have been using this solution. Retailer supply chains have found great success from using Bramidan waste recycling balers since 2014. This is paired with A-Ward’s efficient customer service, quick and reliable response and fast delivery times. Consumables and part savings offer extra value for A-Ward’s customers. Furthermore, A-Ward representatives work alongside waste companies to help create an overall solution. Kym Samuels, Owner-Operator, New World Eastridge says: “A-Ward have provided our baling solutions, both cardboard and waste, since I took over the store seven years ago! This was a great decision for waste diversion and when required, their customer service has always been quick and efficient – often in times of great need! Simon and the team are always looking for opportunities to help improve our business and have now supplied multiple stores within our Co-operative with world leading technologies.” A-Ward Bramidan Balers used for cardboard, plastic, aluminium, and textiles is the leading hydraulic baler brand in New Zealand. To have a free assessment of your current recycling handling process, please visit www.a-ward.com or email sales@a-ward.com.

A-Ward Bramidan Balers

Cottonsoft highlights its commitment to local recycling and sustainability

Higher consumer demand from essential service providers has created increased volumes of waste packaging. This has resulted in addressing challenges to meet these specific recycling issues. Traditional processes require staff to inefficiently travel back and forth to carparks or other exterior areas to manually flatten boxes and try to place them into cages. In addition, regulations for social distancing and exposure of staff to employees from other retailers sharing waste management areas, may present risks.

Cottonsoft Ltd is proud of its commitment to the communities it operates in and is delighted that its EarthSmart 360 toilet tissue, with recyclable paper packaging has been recognised by Consumer NZ and is now Consumer Recommended. Cottonsoft Marketing & Sustainability Manager Malcolm Everts says: “Consumers are actively seeking products and packaging that are reducing their environmental impact, so they have peace of mind they are making the right social and environmental choices.” FMCG BUSINESS - SEPTEMBER 2020

[ feature ]

EarthSmart 360 recyclable paper packaging was developed in collaboration with the local packaging expertise of Curious, InkBox and Stratex. The innovative approach and resulting packaging has also been recognised with a Gold Pride in Print Award for Innovation. Retailers and shoppers alike have been quick to adopt EarthSmart 360, even before panic buying. “Manufacturers need to take trends into account and work to continuously improve the social economic and environmental performance of their products. Cottonsoft has been breaking new ground in New Zealand to deliver products that tick these boxes,” says Everts. The latest innovation is a recyclable paper pack, which took well over a year to complete. EarthSmart 360 is made in New Zealand from sustainably sourced paper. Both the core and packaging can be recycled via kerbside collection or your local paper recycling facility. Cottonsoft Limited are working actively on sustainability initiatives such as PEFC (Programme for Endorsement of Forest Certification) certified tissue, and ECNZ (Environmental Choice New Zealand) certification on brands such as Tuffy and CottonSofts. Everts says that as well as striving to ensure company practices are environmentally responsible, they are also committed to the wider community through supporting Bowel Cancer NZ, EarthSmart Wetland Projects and Cottonsoft is a foundation sponsor and advocate for Soft Plastic Recycling in NZ.

alternate sustainable resin-based films such as green and compostable resins, and paper materials. TC NZ employs over 80 people in New Zealand with centres in Auckland and Christchurch, home to an ultramodern food grade packaging manufacturing plant. TC is excited to introduce the new “Take-Two” Courier Bags range, manufactured using up to 80% recycled New Zealand LDPE Waste. “We are proud to offer a sustainable Courier Bag solution, utilising our postindustrial recycled plastic, as part of our commitment to recycle, reuse, and to reduce waste. This is the first range of its kind manufactured in New Zealand,” explains Marketing Co-ordinator Rachel Smith. “TC Transcontinental Packaging brings a distinctive blend of science, technology, and art together to create flexible packaging that preserves our customers’ products and accentuates their brands on shelf. Our expertise, resources and conversion technology helps us create packaging that gives our customers a competitive advantage. We utilise a wide variety of printing techniques, laminations and converting styles that help enhance your brand.” “Recently at the 2020 Pride in Print Awards, TC NZ were awarded four Gold Medals in the Flexible Packaging Category. We invest in state-of-the-art technology and are delighted to be recognised for our high-quality packaging that we supply to our customers. “Globally TC Transcontinental Packaging is committed to a circular approach to plastic. As global signatories to the Ellen MacArthur Foundation, we have committed that by 2025, 100% of our plastic packaging will be reusable, recyclable or compostable, and that 10% of our plastic output will be made from recycled plastic waste. TC NZ are meeting customer requirements by extruding and converting compostable resins, green PE (PE derived from renewable resources such as waste sugar cane) and has the ability to manufacture with recycled resins. Already, TC NZ recycle a significant volume of in-house, post-industrial waste which goes into our industrial and refuse packaging,” says Smith. Get started with TC Transcontinental Packaging: Ignite your brand by calling 0800 355 399 or please email SalesNZ@tc.tc

“TC TRANSCONTINENTAL PACKAGING IS COMMITTED TO A CIRCULAR APPROACH TO PLASTIC”

TC Transcontinental Packaging New Zealand With over 30 years’ operating experience in New Zealand, TC Transcontinental Packaging New Zealand (TC) is a leading manufacturer of flexible packaging to the FMCG, primary foods, courier and ecommerce, and manufacturing sectors in both New Zealand and Australia. TC is both a reputable manufacturer and importer, supplying all forms of flexible packaging including traditional resin-based films, laminates, 24

FMCG BUSINESS - SEPTEMBER 2020

TC is excited to introduce the new “Take-Two” Courier Bags range, manufactured using up to 80% recycled New Zealand LDPE Waste.

[ good business ]

COUNTDOWN SAYS GOODBYE TO ARTIFICIAL COLOURS AND FLAVOURS IN BAKERIES None of Countdown’s in-store baked goods will contain artificial colours or flavours after a threeyear project to eradicate nasties. More than 60 products have been changed in a move Countdown says was sparked by Kiwis’ growing demand for more natural products and a desire to know what’s in their food. Countdown’s nutritionist, Deb Sue, says customers will definitely notice some colour changes as Countdown’s nutritionist Deb Sue natural colours are more subtle than their fake friends. However, Countdown has undergone months of testing to ensure alternate natural ingredients don’t sacrifice taste, overall appearance and shelf life. “Kiwis have come to expect the bright vibrant colours of artificial dyes, so there will definitely be some noticeable visual differences due to the paler nature of natural colours,” says Sue. “A good example is the jam filling in our popular lamington logs and cream buns, which previously had a lurid pink filling which was

clearly artificial. Our jam now is coloured by the fruit in the jam plus pigment found in carrots and colourful vegetables.” Countdown has reformulated more than 60% of its range, with the rest of the range already being free of artificial ingredients and is believed to be the only national bakery to bake without artificial flavours or colours. “We hear more and more concern from our customers about artificial flavours and colours. We’ve removed them from all of our packaged own brand products, and I’m really pleased to bring this thinking into our freshly baked goods too,” says Sue. In 2017 Countdown set a number of targets around the reformulation of Countdown’s own products to reduce sugar and salt, and help Kiwis make healthier food choices. Currently 99% of Countdown’s own brand range displays the Health Star Rating, and 53% of these products have a Health Star Rating of more than 3.5 stars.

[ profile ]

NEW MITRE 10 SMARTMATE ACCOUNTS BENEFIT KIWI BUSINESSES Every New Zealand business needs a SmartMate card in the toolkit or briefcase. Mitre 10’s new SmartMate customer accounts offer a range of benefits for trade customers and give any registered business with a New Zealand Business Number (NZBN) access to trade pricing on a wide range of products at participating Mitre 10 stores across the country. The SmartMate suite includes three different account types: • SmartMate Cash – the pay-as-you-go account which unlocks trade pricing for any small to medium kiwi business or sole trader with an NZBN. • SmartMate Charge – the tradie’s best friend, a credit account to help tradespeople and construction businesses manage their day-to-day business needs. • SmartMate National – account solutions tailored to suit the needs of larger commercial enterprises. All three SmartMate options give the account holder access to Mitre 10 Trade Hub, where they can see pricing, place orders online and manage accounts and users. Accounts can be used at any participating store nationwide, offering convenience and flexibility, and there are no account fees. SmartMate Charge is a flexible on-account solution that delivers a seamless experience whether you’re instore or online, with trade pricing, 26

FMCG BUSINESS - SEPTEMBER 2020

24/7 access to Mitre 10 Trade Hub, estimation and quotation tools to support your business operations. Prefer to pay as you go? No problem. SmartMate Cash is the one for you. You’ll get trade pricing and Trade Hub access, but you won’t get endof-month invoices to deal with. Work smarter, not harder, with Mitre 10’s new SmartMate accounts. Apply here: SmartMate Charge: www.mitre10.co.nz/trade-account SmartMate Cash: www.mitre10.co.nz/trade-account/smart-mate

[ good business ]

Comvita, New Zealand’s largest producer of UMF Mānuka honey, has announced a new partnership with wildlife charity Saving the Wild, which will see the two organisations work together on global projects to help protect ‘nature in need’. Established in 1974, Comvita came to life in a counter-culture movement built on respect for nature and humankind. Saving the Wild is a New Zealand registered charity, founded in 2014 by Jamie Joseph, with a mission to protect endangered African wildlife and ultimately the priceless biodiversity of the planet. Jamie Joseph, Founder of Saving The Wild New Zealand Comvita and Saving the Wild have worked together in the past to help nature in crisis. First in 2018 in Africa, when Saving the Wild used Comvita’s Manuka partnership. As the major Sponsorship Partner Comvita will work with Honey to treat rhinos and elephants wounded by poachers. And again Saving the Wild to bring the power of bees and beekeeping skills to local in 2020, when Jamie Joseph took Comvita’s Manuka Honey Wound Gel communities, with a vision to create a circular flow of benefits promoting to the frontline of the Australian bushfires to help treat koalas and other harmony between people and nature. native wildlife, burned and injured while fleeing the fires. To discover more about the partnership and Saving The Wild, visit Bees will be at heart of the new Comvita & Saving the Wild www.comvita.co.nz/savingthewild.

Credit: © Photo Saving The Wild

A POWERFUL NEW PARTNERSHIP TO HELP SAVE THE WILD

[ good business ]

FRUCOR SUNTORY NAMED 2020 EMPLOYER OF CHOICE Frucor Suntory has been selected as a winner of the Human Resources Director NZ Employer of Choice Awards for 2020. The Awards recognise organisations for their overall employee experience. Employers were asked to provide qualitative and quantitative information to demonstrate their achievements in areas including leadership, training and professional development, communications, diversity and inclusion, work life balance, recruitment, remuneration and access to technology and resources. Frucor Suntory stood out for its strong employee engagement (81%) along with a range of initiatives, including: The launch of a Diversity & Inclusion Strategy. The company is also the first FMCG business in New Zealand to implement equal gender paid parental leave. Unveiling their digital learning platform – “MySU” – during the COVID-19 lockdown (incorporating locally developed, LinkedIn Learning and Suntory global content). It’s a great example of helping employees unlock their potential and drive their own learning agendas. The extension of communication channels and digital technologies (including podcasts, vlogs, even TikTok dances!) Continuing their Leadership Development journey with the refresh of Frucor Suntory’s “Leadership Mindset” material. The company’s unique, experiential Leadership programmes showcase the Frucor Suntory “magic” – and help drive personal and commercial performance. As one attendee commented, they are “…an excellent example of how Frucor

Frucor Suntory Business Technology Manager, Fernando Battaglia and Director of Leadership and Culture, Sally Cannan.

Suntory is committed to building not just great leaders, but great people.” Frucor Suntory CEO, Darren Fullerton says: “The Employer of Choice award is great recognition of the work our People team has delivered – and the support from our leaders to put our people at the heart of everything we do. Frucor Suntory is known for its vibrant culture and thirst for success. As an employer, it’s critical we provide outstanding initiatives – like learning and development and leadership opportunities – and that we acknowledge and reward a job well done.”

NZ PET WELLNESS BRAND: ANIMALS LIKE US

•F M C

• R

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UCT OF THE OD YE PR A

DUCT OF TH PRO EY CG M

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PRODUCT OF THE YEAR

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UCT OF THE OD YE PR A

PRODUCT OF THE YEAR

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DUCT OF T HE PRO Y CG M FIN AL IST

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A new pet wellness brand, Animals Like Us, is launching their first range of Dog Food called Raw Made Easy into supermarkets in October 2020. It comes in three flavours: Grass-fed Beef & Wagyu Beef Heart; Cage-Free Chicken & NZ King Salmon; and Grass-fed Lamb & Venison. Animals Like Us is New Zealand owned and all the meat and fish is sourced from sustainable farms in New Zealand. The packaging is soft plastic and they are a member of the Soft Plastic recycling scheme. The product range includes for example: • Cage-Free Chicken & NZ King Salmon (a blend of raw freeze-dried cage-free chicken organs and New Zealand King Salmon combined with high protein oven baked meat and vege bites coated with probiotics.) • Grass-fed Beef & Wagyu Beef Heart (a blend of raw freeze-dried grassfed beef, liver, tripe and omega rich grass-fed Wagyu Beef heart combined with high protein oven baked meat and vege bites coated with probiotics.) Visit www.animalslikeus.com for more information.

FMCG BUSINESS PRODUCT OF THE YEAR Do you have a Hero product that stands out from the crowd? If there’s a tasty tastebud teaser, NPD rockstar, or best seller in your portfolio that deserves to be crowned ‘Product Of The Year’ - we’d love to hear from you! We’ll showcase some of the finalists in upcoming issues and reveal the FMCG Business Product of the Year later in 2020. To find out more on how to enter please email: trubanowski@intermedianz.co.nz

FMCG BUSINESS - SEPTEMBER 2020

[ James & Wells ]

SOCIAL MEDIA INFLUENCERS A MIXTURE OF RISK AND REWARD The use of social media influencers to promote food and beverage products is on the rise. As digital advertising practices continue to evolve, the legal risks become more pertinent and must be proactively managed. While online content can be changed relatively quickly, easily and cheaply compared to a product label or packaging, damage can still be done in the short amount of time that a social media post is online due to its instant reach to thousands of viewers. An ‘influencer’ is someone who uses their reputation to influence the purchasing decisions of their audience. They may provide a testimonial about a product or simply advertise it on a platform like Instagram. However, even when the business being promoted is not involved in the messaging, it raises potential liability issues, particularly if there is an element of gifting or paid promotion involved. While New Zealand law does not require the use of hashtags such as #ad or #sponsored, it is an offence to mislead consumers under the Fair Trading Act 1986, and breaches can carry penalties of up to $600,000. The Advertising Standards Authority (“ASA”) is another body monitoring misleading content and while unlike the Commerce Commission it does not have the power to make orders or issue fines, influencers and brands face reputational risk in respect of adverse findings. The ASA Complaints Board recently upheld two

complaints against influencer Simone Anderson, making it very clear that non-disclosure of a sponsored post could be considered misleading. Ms Anderson had not sufficiently identified that certain Instagram posts were in fact commercial endorsements. One of the posts was for an activewear brand and the second was for a hotel. Neither were controlled or guided by the businesses being promoted. Although Ms Anderson was not paid for the posts, it was concluded that compensation occurred in the form of free goods and commissions through an affiliate code, and the provision of free accommodation. The ASA found that both posts met the definition of “advertisement” and disclosure of the commercial arrangement was required, for instance by use of the hashtag #gifted. While in these cases the complaints were made against the influencer rather than the businesses they were endorsing, in other countries regulators have taken a stricter approach and held both parties to be liable if the advertisement is found to be misleading. In order to avoid misleading consumers and causing damage to your brand, businesses should proactively manage how they engage with influencers. If you are compensating an influencer to promote your products, ensure you provide them with guidelines on the claims they can and cannot make. The person making the statement must have used or consumed the product and their testimonial needs to be accurate and factual.

Stephanie Hadley Associate, James & Wells James & Wells is one of New Zealand’s largest, privately owned, patent and trade mark attorney firms. Their award-winning team is widely recognised as one of the very best in Australasia.

“IT IS AN OFFENCE TO MISLEAD CONSUMERS UNDER THE FAIR TRADING ACT 1986”

FMCG BUSINESS - SEPTEMBER 2020

Shop with me, and learn how to influence your customers and resources are limited resources. It is easy for the must-do to over-shadow the should-do. Some company cultures focus more on making products efficiently without spending time to enquire about who would like what.

Lew Bentley Head of Strategy Energi

Curiosity. It’s what separates great marketers, entrepreneurs and business leaders apart from mediocrity. Curious business minds are centred on what their customers really want, what they feel, and what the quality of their experience is really like. Warts and all. They want to know because in today’s world of hyper-competitive markets, over-supply, easy substitution, and constant disruption, you have to be on your game and true to what shoppers want if you’re going to win. Customer insights are the key to understanding and connecting with shoppers and identifying business development opportunities. They provide the clues to improvement, whether it is constant forward momentum, or the flash of a break-through.

This operating style of ‘ready, fire, aim’ is not uncommon and it produces a clear irony in the priority of efficiency over effectiveness. Research can certainly help provide insights when done well, but all too often it can feel like fast food: promising a lot, but unsatisfying. The pearls of insight can be lost by dumbing things down, taking too superficial a glance at consumer behaviour, or relying too much on artificial research environments and abstract techniques that filter you out from customers’ reality and leave you wondering what to do next. At the other extreme it is very common to hear marketers struggle these days with trying to manage a flood of data that overwhelms. There is sometimes too much measurement and not enough meaning. There are also some who trade curiosity and open-mindedness with their own over-confidence. Confirmation bias in marketing is all too common, where brands, products and campaigns are skewed in the direction of the marketer’s world view without considering the customer and what they want to buy.

Insights are a form of commercial empathy. They come from being able to see, understand and experience the world through the eyes of the customer. They tell you what works, what doesn’t, and what is missing. Insights come from the real story, straight from customers, listened to, observed, shared aspirations, expectations and experiences.

The problem is Being ‘customer-centred’ is easy to say, and is the right concept in today’s marketing climate, but it can be hard to achieve. Time poverty is a modern scourge that affects us all. We’re crushed with emails, high performance expectations and the pressure of trying to follow market trends that are constantly evolving and shifting. It can seem like a luxury to take the time to stop, and listen to customers, when there are deadlines looming. This is commonly exacerbated when capacity 30

FMCG BUSINESS - SEPTEMBER 2020

Something new out of the box Energi has created a new way for clients to truly appreciate the experience of their customers. ‘Shop with me’ lets you spend time with your customers and to learn how to influence them.

[ profile ] It provides a shared journey of understanding that can play out in a number of important ways: •

Profiling – You can get to know your customers, how they shop and what influences their attitudes and behaviour.

•

Contextual environment - You can get to appreciate how they live, and how your product fits in to their household (or not).

•

Let’s go shopping – You can go shopping with them to experience the marketplace, your category and how well your product stacks up against alternatives from their perspective. This can be in both brick and mortar and online stores.

Designed to fit like a glove At its heart Shop With Me is very clever online community bought together for the project at hand. Each project is customised, scoped and scaled to suit needs and budget. There is a high degree of flexibility with the types of people that can take part in a Shop With Me project. This can include different types of customers from grocery shoppers, to insurance buyers, to car buyers, to property investors, to business-to-business trade partners. It is possible to include customers from any part of the country, or wider international markets in multiple languages simultaneously if required.

•

Back home - Go home with them to see what they do with your products (and competitors), how they use them, and how satisfying they are.

The duration of a project can be anything from a few days, to a few weeks, to always on; depending on how much time you want to spend with your customers.

•

Do they like what you have to offer? - Get their impressions of the complete experience you provide – channel, packaging, communication, online, ecommerce, product, pricing…

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What’s their advice? - Listen to what satisfies them, what doesn’t and what they think you could be doing better, and what needs they have that go unmet.

The way you can interact with customers and gather content is incredibly dynamic. Single, or group conversations, guided shopping trips and home tours, threaded discussion forums, written responses and polls, video and pictures are all available.

Using Shop With Me you can invite your customers into your marketing process to strengthen their experience in many different ways, at different stages, and for different uses. •

It helps you simply and objectively assess the reality of the experience your customers have of your products, compared to competitors.

•

It is ideally suited as a platform for new product co-creation.

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Shop With Me is excellent for user experience testing of websites, apps and other experiences such as new store concepts and services.

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Customer journey mapping becomes a much more 1st-hand, documented and guided experience.

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It is a great way to do ethnographic work, observing how people use your products in their natural environment.

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Communication planning and concept testing can benefit from an iterative process of conversations, concept creation, testing and refinement.

•

The powerful profiling tools in Shop With Me are perfect for developing segmentation frameworks.

How curious are you? The level of engagement that Shop With Me allows clients is highly flexible. At the shy end of the scale you can stay hands off and just see the results as they appear. For those who would like to be more involved you can take an active role getting to know customers personally and get your hands on Shop With Me’s powerful analysis tools. Shop With Me invites you to come out from behind the focus group mirror, and cross the research gap to spend time with your customers directly. You can bring them into your marketing and business development processes. You can learn from them. You can use the insights they share with you to catch customer attention, improve their experience, earn their loyalty and become a brand worth sharing. Curious? See what you can discover by shopping with your customers.

If you would like to know more about how Shop With Me can help you please contact Lew.bentley@energi.co.nz FMCG BUSINESS - SEPTEMBER 2020

[ FCG ]

NEW ZEALAND NEEDS A NEW NUTRITION SURVEY

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

“OUR RATE OF 29% OF OUR POPULATION BEING OBESE IS FAR TOO HIGH”

For most, this election will be like no other in living memory, except for those who can remember the disruptions of WWII. It’s doubtful there will be the usual discussion and scrutiny of policy, instead replaced by the focus on COVID-19 and answering the growing concern about how the heck, having elected to go down an elimination route, we deal with this virus that will likely be globetrotting for years to come. Other aspects of public health are also unlikely to be discussed this election, such as policies to promote good nutrition, tackle obesity levels, and increase activity. Obesity continues to be a major problem. Our rate of 29% of our population being obese is far too high. Canada, the UK, and Australia are all below us at 28%. We are better than the US, which is at 34%, but that’s no reason to pat ourselves on the back. As a country, we know we must take action to bring that statistic down, and the food industry has been playing its part. A report by manufacturers, retailers, and fastfood representatives made 51 recommendations to the Government covering moves we know would each play a part in helping this: food and beverage formulation and innovation, employee health and wellness, community and education initiatives, food and beverage marketing, and labelling. Product reformulation is a standout and is where the industry has been making huge strides over the past decade or so, reducing saturated fats, trans-fats, free sugars and salt in foods and beverages. As a result, there are now more healthier options across many categories than we’ve ever had. Reformulation is a powerful way of addressing the factors contributing to obesity. By developing products with reduced negative nutrients and increased positive nutrients, there’s no need for consumers to change their behaviour to get healthier foods – they simply make a choice. Since the report, the industry has been continuing with this work. As well as doing their own thing, they have been working

FMCG BUSINESS - SEPTEMBER 2020

with the Heart Foundation to set targets for priority categories. They involve high-volume, lower-cost products for maximum public health impact. Despite this, there’s still a gap in our knowledge of what makes up the diet of today’s children. The report called on the Government to undertake a children’s National Nutrition Survey, and that’s what FGC is calling on all political parties to commit to it as a matter of urgency – because the latest information we have is 18 years old! Nutritionists, officials and the industry agree much has changed in that time, and policy-makers are at worst flying blind or at best defaulting to more up-todate Australian data, which doesn’t take into account any unique factors that arise due to the diversity of our population. With good nutrition at stake, it beggars belief the Ministry of Health has allowed this data to become so outdated. The last survey collected information for children aged 5-14, measuring things such as how much fruit and fast food they were eating, how much exercise they were getting, and sugar, salt, fat, and vitamins and minerals intake – all crucial for determining changes policymakers and industry should be targeting. We know many of the measures collected in 2002 will have changed dramatically. Think of the effect of screen time on exercise. In 2002, television was still the No 1 screen in children’s lives. Not so now, as YouTube has overtaken television, and it would be interesting to see where relative newcomer TikTok sits. These are things we need to know more about. A fresh survey is needed to form an evidence base to set targets and direct efforts for reformulation and education. It’s not just industry pressing for this. There’s support from public health, non-government organisations, academics and researchers, who agree we desperately need to know what New Zealanders are eating so we can effectively tackle the obesity issue.

[ legal advice ]

CORONAVIRUS:

CONTRACTUAL CONSIDERATIONS Many readers will have been focusing on recovery, particularly after 100 days of no community transmission. This was of course abruptly punctuated with coronavirus resurfacing in the community on 11 August 2020, highlighting the uncertain environment we find ourselves in. We suggest considering the following contractual matters to assist you with managing this uncertainty, whether negotiating new contracts or reviewing existing contracts. Force majeure: A force majeure clause says that if unexpected circumstances prevent one or both parties from fulfilling their obligations under a contract then the contract can be cancelled without either party being liable. Unexpected circumstances are usually limited to things beyond the parties’ control, sometimes called ‘Acts of God’. Given the pandemic is with us now and easily foreseeable, new contracts may exclude pandemics from the force majeure clause so the specific wording should be checked. For existing contracts that do not have a force majeure clause, a legal doctrine known as ‘frustration’ may apply. The doctrine applies if there is an unforeseen event, outside the control of the parties, which makes it impossible to perform the contract or radically changes the contract. If frustration applies, then the parties are released from liability under the contract. The threshold for ‘frustration’ is very high. Advance notice: With supply chains being disrupted, an advance warning mechanism, where a party is required to give advance notification of any matters which are likely to materially delay

performance of the contract, could be useful in managing and resolving issues early. Business Continuity and Disaster Recovery: This clause obliges a party to maintain a reasonable business continuity plan or “BCP”. Even if not making this an explicit term of your contract, it can be assuring to find out whether businesses you are dealing with have a BCP in place. Execution formalities: If social distancing or similar measures are in place when your contract needs to be signed, it pays to have included a clause which says that the contract can be signed in counterparts, by exchanging emails or electronic signatures. Negotiations: If there is an existing contract in place, consider whether you should first record with the other party that rights and obligations under the existing contract are preserved while you are negotiating. The reason this can be important is to mitigate the risk of waiving or acquiescing to new arrangements which were only meant to be a review or negotiation. To avoid this, the nature of any change in arrangements should be clearly noted. Notices: Ordinarily, a way documents can be served on a company is by delivery to the company’s registered office or address for service. However, with a level 3 or level 4 lockdown, there may not be anyone at the registered office to actually receive documents. This risk may be mitigated by including a clause which obliges a party to serve notices in a particular way, for example by email, in addition to any other lawful method a party may adopt.

Aman Prasad is a Solicitor at Steindle Williams Legal specialising in property, business and commercial law. swlegal.co.nz

“NEW CONTRACTS MAY EXCLUDE PANDEMICS FROM THE FORCE MAJEURE CLAUSE.”

FMCG BUSINESS - SEPTEMBER 2020

[ export ]

MĀORI HONEY BUSINESS ADAPTS TO NEW NORM

Catherine Beard is Executive Director of ExportNZ, which serves its members via regional offices throughout the country. To find your nearest office go to www.exportnz.org.nz

It’s a familiar story in New Zealand: honey business achieves global success with its liquid gold. However, few appreciate the sheer determination that goes into making a honey business float. What sets Kai Ora Honey apart is staying true to its Māori values and its focus on connections. “Real connections do not change in crisis,” Chief Executive Blanche Morrogh says. New Zealand’s $49 million honey export market was not immune to the threat of COVID-19 as supply chains and logistics faced significant disruption. Fortunately for the sector, demand for natural food products increased through the period. Despite the uncertainty, Kai Ora is holding true to its Tikanga Māori values, instilled in Morrogh through her father, who introduced her to beekeeping and the fast-growing Manuka honey industry. “As a Māori family living in a rural community honey was a realistic opportunity for us. Our Māori Culture sets us apart and gives a deep connection in today global markets.” The business sells about 40% of its products locally and 60% overseas. While it has seen a steady growth in export demand, domestically, it had been supplying mainly tourist-based locations, so its domestic revenue stream is 90% down on same time last year. Despite this, Morrogh says its ability to be adaptable and pivot to deliver a diverse range of products from the hive have added value to the business. Kai Ora has made significant investments recently like creating a natural skincare range, natural sanitiser range and wellness products from the hive.

FMCG BUSINESS - SEPTEMBER 2020

While these investments are having a high cash burn rate, she expects it to bring significant return soon. Morrogh says the biggest challenges Kai Ora has faced has been in terms of its structure and investment. “Taking on investment is difficult without having to manage family. We found once we took away the emotion, culture and heritage links and access who is right for each role - not ‘you have a role because your family’ we began to fly.”

Advice Morrogh says businesses should think hard about who they partner with. Kai Ora had support from the Māori Investment Fund and NZTE’s Market Validation Fund. In addition, Poutama has been Kai Ora’s biggest supporter to date not only financially investing in the business, but also investing into its networks to collaborate and expand opportunities for export. “If you take on investment make sure your values and goals align - especially if you succeed at an exponential rate, success can change perspectives. “But most importantly, make sure you build an authentic business and good core values that are relative to your product or service.” She says being a Māori business has had significant advantages. “Without these cultural principles our authentic and trusted position would be compromised.” After winning the 2017 Young Māori Business Leader Award, Blanche Morrogh told the crowd, “relationships lead to success, no matter how technical or automated this world becomes, opportunities come through people.”

[ good business ]

NZ’S FIRST FOOD WASTE-TO-BIOENERGY FACILITY “It will create enough energy to annually New Zealand’s first large-scale food wastepower up the equivalent of around 2,500 to-bioenergy facility is underway at Reporoa households in the region, produce clean in the central North Island. The anaerobic bio-fertiliser for approximately 2,000 digestion facility is owned by Ecogas – a hectares of local farmland, and provide joint venture between Pioneer Energy Ltd CO2 and heat to enhance the growth of and Ecostock Supplies Ltd – on land owned tomatoes in T&G Fresh’s local glasshouse. by T&G Fresh, one of New Zealand’s largest The outcome is a carbon-neutral, circular fresh produce businesses. economy solution. Ecogas Director, Andrew Fisher says this “By revolutionising our reuse and recovery world-class facility will help New Zealand of this organic resource, each year the facility deal with some of its 327,000 annual tonnes Andrew Keaney, Managing Director of T&G Fresh and Andrew is expected to remove up to 10,000 tonnes of food waste, which currently goes into Fisher, Ecogas Director at T&G’s Reporoa glasshouse. of carbon dioxide – that’s the equivalent landfills around the country. of planting 218,400 trees every year. It’s innovative solutions and “By using world-leading, innovative technology, our anaerobic digestion real-world science like this, which we believe New Zealand needs to facility will not only help address New Zealand’s food waste challenge, increasingly pilot and adopt, that will help us as a nation meet our zeroit’ll help power up the local community, local glasshouses, enrich local carbon targets,” says Fisher. farmland, and create jobs and growth for the region,” says Fisher. Co-funded by Ecogas and a $7 million loan from the Provincial The facility, which will be operational in 2022, will recover 75,000 Growth Fund, this $30 million state-of-the-art facility will provide a tonnes of organic waste from businesses and kerbside food scrap welcome infrastructure boost to the local economy and generate close collections throughout the North Island and turn it into sustainable to 60 new jobs through the construction process. renewable clean energy.

JOIN US AT THE FMCG BUSINESS MARKETING SUMMIT! “THE SUMMIT WILL INCLUDE PRESENTATIONS FROM INDUSTRY EXPERTS, Q&A PANEL DISCUSSIONS AND VALUABLE NETWORKING OPPORTUNITIES” The FMCG Business Marketing Summit returns in September.

After a hugely successful launch in 2019, the FMCG Business Marketing Summit returns to Auckland on 29th September 2020. It promises to be a full day of uncovering the marketing insights that make FMCG brands successful. Join us on this one-day marketing masterclass, jam-packed with education, stimulation and curated sessions that will help attendees to stay ahead of the game in New Zealand’s fast-moving grocery and retail sectors. The summit will include presentations from industry experts, Q&A panel discussions and valuable networking opportunities to connect with other professionals. Below is a brief introduction to some of the speakers at the Summit.

Katherine Rich - CEO, New Zealand Food and Grocery Council The New Zealand Food and Grocery Council is the industry body representing food and grocery manufacturers and exporters. Katherine Rich represents FGC member companies on a range of boards and Government panels and is currently also a New Zealand member on the APEC Business Advisory Council (ABAC). Katherine received her tertiary education at Otago University, New Zealand, gaining a BA/BCom in marketing and economics in 1990 and 1993. After leaving university she was a policy analyst with the Ministry of Agriculture and held other agri-business roles in marketing and general management. Additionally, she was a Member of Parliament in New Zealand for nine years from 1999-2008. 36

FMCG BUSINESS - SEPTEMBER 2020

In her presentation, Katherine will share her insights into FMCG Marketing in New Zealand and around the world.

Morgan McCann - Head of New World, Foodstuffs North Island Foodstuffs North Island is a supermarket co-operative with New World, PAK’nSAVE, Four Square, Gilmours and Liquorland as some of its brands. Morgan McCann is Head of New World for Foodstuffs North Island and looks after the brand’s 100 North Island stores, ensuring stores deliver memorable experiences, fair value and inspiring solutions for customers every day. Prior to his current role, Morgan held Merchandise Manager positions looking after Foodstuffs North Island’s Grocery Food, Beverages, Liquor and Non-Food categories. In his presentation, Morgan reveals five things you need to know to get on New World’s shelves!

Craig Irwin - Managing Director IRI New Zealand and Hong Kong Craig joined IRI from Fonterra in New Zealand and has over 20 years’ experience in the FMCG sector across Australia, New Zealand and the UK. During his career, Craig has held senior

[ events ] management roles within Frucor Suntory Beverages and Pharmacare Laboratories. He has a proven record of building and sustaining long-term partnerships with customers, and as a passionate and innovative leader he is responsible for leading the team to enhance IRI’s ability to meet the needs of clients, as IRI continue to provide industryleading insights and solutions to the marketplace. In his presentation FMCG: Over a decade of change, Craig will provide IRI insights into how FMCG has evolved over the last 15 years, focusing on the impact of key events and how we can navigate the path forward.

Lew Bentley - Head of Strategy & Owner, Energi Shopper Lew Bentley understands why people buy things and what can be done to influence them. He is the Head of Strategy for shopper marketing agency Energi and a regular columnist for FMCG Business. His skills have been honed over a career path that includes Research Director of CM Research (now TNS), strategic planner for The Campaign Palace, M&C Saatchi and Clemenger BBDO, and as a senior marketing and communications consultant with Headlight and Maven. Over the years Lew has worked in many different categories with many different clients. This includes: • FMCG (Kiwicare, Sanitarium, Cottonsoft) • Financial services (ASB, ANZ/National Bank, Westpac, Cooperative Bank) • Destination marketing (Positively Wellington Tourism, Panuku Development Auckland) • Education (University of Auckland, Victoria University) • and Public Sector (Immigration New Zealand, NZTA road safety, Statistics NZ). In his presentation Lew will be sharing some intriguing and valuable insights from the coalface of consumer behaviour.

Pic Picot – Owner and Founder of Pic’s Peanut Butter Keynote speaker Pic Picot (MNZM) is the owner and founder of Pic’s Peanut Butter, a company employing 50 Nelsonians and distributing its products around the world. In 2019, the company opened Peanut Butter World, now an important tourist attraction for the Nelson region. For almost all of his working life he has been self-employed, running a variety of small-scale manufacturing and marketing businesses, ending with a Nelson based sailing school. At 55 deteriorating vision nudged him into retirement, when a hobby business, making and selling peanut butter at the Nelson market grew rapidly, and for the first time in his life he built and became part of a team. Pic’s presentation is entitled ’Be Your Brand’. For more information and tickets for the FMCG Business Summit visit www.fmcgsummit.co.nz

Judging for the NZ Ice Cream Awards is planned for early October.

WHAT’S ON SEPTEMBER

14 THE GROCERY CHARITY BALL

29 FMCG BUSINESS MARKETING SUMMIT

Auckland, NZ www.grocerycharityball.org/

Auckland, NZ www.fmcgsummit.co.nz

14-15 THE CHOCOLATE & COFFEE SHOW

OCTOBER

Auckland, NZ www.chocolatecoffeeshow.co.nz/

NZ CHEESE MONTH https://nzsca.org.nz/cheese-

19-22 THE FOOD SHOW

month/

Auckland, NZ

3 ICE CREAM AWARDS JUDGING Auckland, NZ www.nzicecream.org.nz 8 NZ FOOD HEROES AWARDS Auckland, NZ www.foodawards.co.nz/heroes 30 THE FOOD SHOW Wellington, NZ www.foodshow.co.nz

NOVEMBER 4 NZ ICE CREAM AWARDS GALA DINNER

www.foodshow.co.nz

2021 APRIL 13-15 FOODTECH PACKTECH Auckland, NZ https://www.foodtechpacktech. co.nz/

SEPTEMBER 8-9 C&I EXPO NZ

Auckland, NZ

www.nzicecream.org.nz

www.candiexpo.co.nz

Visit the websites and contact the event organisers for further details and updates. To have your event listed in FMCG Business email: trubanowski@intermedianz.co.nz. FMCG BUSINESS - SEPTEMBER 2020

If you own or work in independent grocery or a convenience store, service station, dairy, corner store or mini-mart, C&I NZ is the one event you should not miss in 2021.

SAVE THE DATES

ADMISSION IS FREE! ORGANISED BY: Interpoint Events Pty Ltd in conjunction with C&I Media Pty Ltd and the Australasian Association of Convenience Stores 41 Bridge Road Glebe NSW 2037 P: 1300 789 845 F: 02 9660 4419 E: exhibition@c-store.com.au W: www.c-store.com.au

Association Partner

WED 8 - THU 9 SEPTEMBER 2021 Convenience & Impulse New Zealand Expo 2021 The Cloud, Auckland

The Convenience & Impulse New Zealand Expo brings together New Zealand convenience retailers and suppliers from all banners and brands to gather for two days of education, networking and business building.

For more information visit www.candiexpo.co.nz

BIG MILESTONE

FOR GRAHAM NORTON AND INVIVO Graham Norton’s collaboration with Kiwi wine company Invivo & Co goes from strength to strength as the business partners are set to produce their ten millionth bottle of wine this year, a landmark moment since their first run of 14,000 bottles of Marlborough Sauvignon Blanc in 2014. Graham Norton proudly shared the news and his latest winemaking video, made with Invivo & Co, on his Twitter and Instagram channels. The news comes as Norton is set to release his sixth vintage of Graham Norton’s Own Sauvignon Blanc with Invivo & Co this September worldwide, after making it at home this year thanks to the pandemic. Ireland-based Norton dialled in his Kiwi business partners - Tim Lightbourne and Rob Cameron - from his home in West Cork, where he has been spending lockdown in July. Invivo Co-founders Tim and Rob had couriered six Sauvignon Blanc samples to Graham, harvested in Marlborough, New Zealand, in March

this year, along with a winemaking kit filled with beakers, which Graham set-up at home. 18,311 kilometres and 11 hours ahead of Norton, the Invivo cofounders arranged their winemaking set up at The Sugar Club restaurant, Sky Tower, Auckland. Situated at 1,080 feet high, the spot offered enviable panoramic views across the city and harbour as the sun rose. Over a two-hour Zoom call, the trio collaborated to create and sign off Graham Norton’s Own Sauvignon Blanc 2020 in a process that Norton likens to “being an air steward who is being talked into landing the plane.” Invivo co-founder and winemaker Rob Cameron says: “We always look forward to our blending date with Graham as he is such an experienced winemaker now (this is his sixth vintage). It’s like he’s a fulltime member of the winemaking team! Graham seemed to dial straight into what was working and what he was after.” On his new wine, Graham comments in his blending video, “I think

“NORTON IS SET TO RELEASE HIS SIXTH VINTAGE OF GRAHAM NORTON’S OWN SAUVIGNON BLANC WITH INVIVO & CO THIS SEPTEMBER WORLDWIDE”

Invivo Co-founders Tim Lightbourne and Rob Cameron at the virtual wine blending session with Graham Norton.

FMCG BUSINESS - SEPTEMBER 2020

[ drinks ] More about Invivo & Co

Entertainer Graham Norton is a shareholder in Invivo & Co.

it’s delicious and has that New Zealand zing. It’s soft and fruity. It’s full but floral-like. It’s sunshine in a glass.” On this year’s vintage, he says: “This seems like a really good year.” Cameron adds: “Graham managed to weave five quite strong personalities together in the blend that normally might have clashed. The result - Graham Norton’s Own Sauvignon Blanc 2020 - is focused but expansive in the palate. It’s precise in respect of its fruit and acidity balance but it also has layers of concentration and a long and deliberate finish. It will really develop in bottle with new fruit characters emerging over the next 12 months. The only thing missing was the post blend debrief in-person!” Graham Norton’s wine and spirits range – that now features a Prosecco, Sauvignon Blanc, Rose, Shiraz and two Irish gins (including one pink) – has clocked up more than 200 accolades over the years and Graham is a shareholder in Invivo & Co.

Invivo’s mission is to bring people together so great things can happen and has been described as “New Zealand’s most innovative winery.” Founded in 2008 by school friends Tim Lightbourne and winemaker Rob Cameron, Invivo & Co set out to make great wine without the elitist attitude the industry can be known for; they believe that nothing should stand in the way of a great drink. About 12 years later, the formula has been a success, with their wines receiving over 200 international wine show medals and distribution in 16 countries. Two successful crowdfunding campaigns makes Invivo the largest crowdfunded beverage company in the Southern Hemisphere. In 2014, Invivo & Co collaborated with Graham Norton after learning he was a fan of New Zealand Sauvignon Blanc. The collaboration quickly expanded and Graham Norton’s wine and spirits range has won multiple awards and now includes a New Zealand Rose, Prosecco from Italy, an Australian Shiraz, and two Irish Gins. Graham Norton’s Own Wines and Spirits are now enjoyed by people in ten countries including NZ, USA, Australia, Canada, UK and Ireland, Norway, Denmark, Hong Kong and Japan.

STOCKISTS Graham Norton’s Own wine and spirits range is available at Countdown, New World, Glengarry, Liquorland, Bottle O, SuperLiquor and Liquor Centre and most other wine stores. www.InvivoXsjp.com , www.invivowines.com

WORLD’S MOST VALUABLE BRANDS REVEALED Brand Finance has published its 2020 Alcoholic Drinks report, which reveals the world’s most valuable brands. Corona was named the most valuable beer brand for 2020 with a value of US$8.1 billion. “The leading Mexican brand is imported into a staggering 120 countries and sales remain solid across its key markets, including China and South Africa,” states the Brand Finance report.

TOP 10 MOST VALUABLE BEER BRANDS Corona – US$8.1B Heineken – $6.9B Budweiser – $6.4B Bud Light – $5.8B Victoria – $4.6B

Kirin – $4.4B Snow – $4.1B Harbin – $4.1B Modelo – $3.7B Skol – $2.7B

TOP 10 MOST VALUABLE CHAMPAGNE AND WINE BRANDS Moët & Chandon – $1.4B Changyu – $1.3B Chandon – $985M Veuve Clicquot – $960M Dom Pérignon – $803M

Lindemans – $534M Barefoot Wine – $529M Beringer – $462M Henkell – $437M Martini – $373M

“The brand has focused on expanding its local production across several countries including China, Colombia, Brazil, Argentina, the UK and Belgium, which not only allows the brand to serve its local communities better but tackles its carbon footprint.” Brand Finance says that with China being Corona’s largest market outside of Mexico, the unfortunate combination of the coincidence in name and strict nationwide lockdown at the beginning of the year over Chinese New Year has caused a decline in sales. But the makers of Corona have hit back, saying that consumers understand that there is no link between the beer and the virus causing the global pandemic. FMCG BUSINESS - SEPTEMBER 2020

[ profile ]

CROSSFIRE

CUTS FULFILLMENT COSTS THROUGH EDI INTEGRATION HonestBrew is an online craft beer supplier that stocks over 300 craft beers (including some great Kiwi ones) and delivers thousands of personalised packs of beer to their loyal beer-loving fan base every month. A highly successful business co-founded by a Kiwi, the UK-based business has a multi-million-dollar annual turnover. More recently, HonestBrew has turned their attention towards increasing efficiency and profitability. The cost of their outer packaging and shipping had increased disproportionately to the value of the orders received. The numerous combinations of beers and packs ordered meant the 3PL packers were making ‘best guess’ but flawed choices as to how to best package orders for shipping, based on the wide range of outer packaging available to them at the warehouse. The warehouse would also regularly run out of selected outer packaging types, particularly when certain promotions were running, as there was no association made between the promotional packs ordered by customers and the outer packaging required to ship them. The impact of this was that packers would revert to the ‘next best option’, which was to use more or larger outer packaging. This approach resulted in both inflated outer packaging costs and shipping costs. HonestBrew worked with their long-time EDI integration partner based in New Zealand, Crossfire, to develop an automated solution.

How they did it Crossfire and HonestBrew worked together to create an automated process to minimise HonestBrew’s outer packaging and shipping costs. Crossfire developers calculated the weights and quantity of each product and associated packaging type (both the inner promotional packaging

and outer shipping packaging) and then developed an algorithm which calculated the optimal packaging for every scenario. Crossfire then auto assigned the correct inner and outer packaging to every online order. Crossfire also integrated various outer packaging types into TradeGecko so the stock levels of all their outer packaging types could be managed.

Has it worked? Today, the warehouse packers no longer decide what outer packaging to use for HonestBrew’s orders. Instead, the Crossfire EDI system does the hard work and picks the optimal packaging for shipping every time. The result for HonestBrew has been proven cost savings from an overall reduction in outer packaging and shipping costs. “Crossfire’s integration with our warehouse has been great and they ensure that everything is running smoothly,” says HonestBrew’s Kiwi co-founder, Andrew Reeve. At Crossfire, we transform supply chain communication for a range of industries, including a number of FMCG businesses. We’ve supported HonestBrew’s ambitious growth objectives by responding to their needs and providing seamless, automated EDI solutions through every phase of their journey. You can read more about the wide range of other optimisation work done by Crossfire for HonestBrew here: www.crossfireedi.com/customers/case-studies/honest-brew

Out & About

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Tahyrn Mason from Villa Maria was named Corteva Northern Young Viticulturist of the Year 2020.

AND

HELL Pizza’s head office and nationwide pizza deliverie

s have become Zero Carbon certified as of August 2020.

Nations Food for the United ed in a report lud tive, managed tia inc ini be ll ed wi nd nt-fu Schools . The governme Vegetables in on d vegetables & it an ati it niz Fru e fru ga tiv sh Or alth initia ily fre NZ’s nutrition d the World He has provided da an st, on Tru ati le niz tab ga l Or y Chari and Agricultura by the 5+ A Da and supported by United Fresh . ars ye 15 for ls oo to low-decile sch

Has your team moved to new premises, or been part of a fun event, great harvest, or promotional activity? Send us your favourite snapshots to be in to win a box of Good Buzz (worth $39.90). Try out a GoodBuzz for a true brew, New Zealand made 100% Kombucha, no dilution, no stevia or erythritol and unpasteurised. Made with NZ spring water and certified organic through Bio-Gro.

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

FMCG BUSINESS - SEPTEMBER 2020

MARKETING SUMMIT Ellerslie Racecourse, Auckland

Register Now TUESDAY 29TH SEPTEMBER 2020 The one-day marketing masterclass for every FMCG professional FOR MORE INFORMATION M: +61 415 404 264 E: bcurtis@intermedia.com.au www.fmcgsummit.co.nz

Early Bird Tickets available, limited time only

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FMCG Business September 2020

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