FMCG Business September 2021 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 2021 – Volume 8 – No 8

PLUS! SUSTAINABLE HOMECARE n GOOD BUSINESS n COOL DRINKS n WHAT’S HOT n NEW ZEALAND’S LARGEST FMCG AUDIENCE

The New Zealand Bone Broth revolution starts

here

Growing awareness of health and wellbeing is driving sales of Drinking Bone Broth around the globe. Following in the footsteps of the Kombucha revolution, it’s now a US$3 billion+ market with a CAGR (compound annual growth rate) of more than 4.5%. Greenlea Premier Meats has developed the Restore range of grass fed beef and free range chicken broths to deliver the tastiest and most beneficial drinking broths for New Zealand consumers.

Join us in leading the Bone Broth revolution in Aotearoa. Email: restore@greenlea.co.nz

WWrestore.co.nz W.RESTORE.CO.N

contents SEPTEMBER 2021

UP FRONT

EDITOR’S NOTE

33 JAMES & WELLS Are your brands protected?

INDUSTRY NEWS

34 FGC

10 BEST IN SEASON Fresh produce update

35 TIPS FOR WORKING FROM HOME

SPECIAL FEATURES

36 HELP FOR FOOD AND BEVERAGE EXPORTERS

16 HEALTH & BEAUTY TRENDS Innovations in natural skincare 20 COOL DRINKS 24 SUSTAINABLE HOMECARE Category insights

REGULARS 11 WHAT’S HOT New products in store 12 NZ POTATO INDUSTRY CONTINUES TO GROW 13 26 SEASONS: MICRO IS SET TO GO MACRO 14 HEALTH & WELLNESS

18 COVER STORY RJ’s is asking the question: what is really in our food?

GOOD BUSINESS 26 INDUSTRY NEWS AND INSIGHTS 28 FEATURE Packaging Forum backs plastics phase-out 31 LEGAL ADVICE 32 FMCG BUSINESS PRODUCT OF THE YEAR This month’s finalist is a natural immune booster

37 CONFESSIONS OF A CARD AGNOSTIC Notes from the retail front line

EVENTS 40 NZ FOOD AWARDS FINALISTS REVEALED 42 NEW DATES FOR 2021 NZ ICE CREAM AWARDS 43 OUT & ABOUT Our people at work and events around the country

CONVENIENCE & IMPULSE RETAILING 44 EDITOR’S NOTE 45 NZACS Meet the two new management committee members 46 PETER JOWETT The four 2021 Peter Jowett scholarship finalists have been announced 48 SHOPPER INTELLIGENCE Promotional planning unpacked 50 NEWS Ampol launches NZ$2bn bid to acquire Z Energy

FMCG BUSINESS - SEPTEMBER 2021

[ editorial ]

DEALING WITH DELTA New Zealand entered another Alert Level 4 lockdown in August, as soon as the dreaded Delta variant of Covid-19 was detected in our community. How can you look after your team and your business, in these difficult times? If you provide an essential service, ensure your team is safe and able to follow the government’s advice and all health and safety guidelines for a Delta outbreak. Review your plans for operating under an increased alert level with the knowledge that this is a more transmissible variant of the virus and ensure that you have enough PPE (such as masks, face shields, hand sanitiser and hand washing products). Heightened cleaning and physical distancing measures are back in all of our essential stores. Supermarkets in New Zealand also offer their staff a 10% bonus to their hours worked while in Alert Level 4. Foodstuffs CEO Chris Quin said: “It’s a positive way we can show our gratitude for the critical work they’re providing right now to keep everyone safe and keep stock on shelves. We are also working to increase staff access to vaccines.” Do you have good protocols in place to deal with the scenario where a member of staff is infected, a close or a casual contact? Your plan needs to be documented and quickly accessible if Public Health or other Ministry officials contact you in the event of a positive test or traced connection. Having an effective system and good documentation could be the difference between continuing production (following appropriate cleaning procedures and other actions etc.) and shutting down. Our legal experts share advice for vaccination policies on pg 31. If you are working from home now, check out pg 35 for some handy tips. We’ve done this before and by pulling together we can do this again. Be kind, look after each other, take care and stay safe. Kia Kaha.

PUBLISHED BY C&I Media (NZ) Ltd PO Box 109 342 Newmarket, Auckland 1149 MANAGING DIRECTOR Simon Grover COMMERCIAL DIRECTOR Safa de Valois safa@c-store.com.au EDITORIAL DIRECTOR James Wells james@intermedia.com.au HEAD OF CONTENT Tamara Rubanowski trubanowski@intermedianz.co.nz ph: 027 278 4761 MANAGING EDITOR – C&I NZ Deb Jackson d.jackson@c-store.com.au NATIONAL SALES MANAGER Vicky Bennett vbennett@intermedianz.co.nz ph: 021 626 115 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 DIGITAL AND PRINT COORDINATOR Eclypse Lee elee@intermedianz.co.nz

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

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

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

ON THE COVER New Zealand based confectionery brand RJ’s recently announced that they are moving to 100% palm oil free production and are urging Kiwis to “ask the question” about what’s in their food. Read the full story on pg 18-19.

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

FMCG BUSINESS - SEPTEMBER 2021

FMCG Business is audited and verified by ABC. DISCLAIMER This publication is published by C&I Media (NZ) Ltd (the “Publisher”). Materials in this publication have been created by a variety of different entities and, to the extent permitted by law, the Publisher accepts no liability for materials created by others. All materials should be considered protected by New Zealand and international intellectual property laws. Unless you are authorised by law or the copyright owner to do so, you may not copy any of the materials. The mention of a product or service, person or company in this publication does not indicate the Publisher’s endorsement. The views expressed in this publication do not necessarily represent the opinion of the Publisher, its agents, company officers or employees. Any use of the information contained in this publication is at the sole risk of the person using that information. The user should make independent enquiries as to the accuracy of the information before relying on that information. All express or implied terms, conditions, warranties, statements, assurances and representations in relation to the Publisher, its publications and its services are expressly excluded. To the extent permitted by law, the Publisher will not be liable for any damages including special, exemplary, punitive or consequential damages (including but not limited to economic loss or loss of profit or revenue or loss of opportunity) or indirect loss or damage of any kind arising in contract, tort or otherwise, even if advised of the possibility of such loss of profits or damages. While we use our best endeavours to ensure accuracy of the materials we create, to the extent permitted by law, the Publisher excludes all liability for loss resulting from any inaccuracies or false or misleading statements that may appear in this publication. Copyright © 2021 - C&I Media (NZ) Ltd

Whatever the occasion, we’ve got the bacon

Thank heavens for Hellers Hellers have got you covered for all your bacon needs New Zealand Free Farmed Danish Free Range Nitrate free Streaky, Middle Eye & Shoulder Manuka Smoked, Honey Cured and Ol’ Smokey

GLUTEN FREE

NO ARTIFICAL COLOURS OR FLAVOURSS

[ news ]

DEALING WITH A DELTA OUTBREAK – RESOURCES FOR YOUR BUSINESS New Zealand entered Covid-19 Alert Level 4 in August, with the Delta variant detected for the first time in the community in Auckland and Wellington. A full list and a map of the locations of interest can be found here: https://www.health.govt.nz/ our-work/diseases-and-conditions/covid-19-novelcoronavirus/covid-19-health-advice-public/contacttracing-covid-19/covid-19-contact-tracing-locationsinterest#current More Covid-19 cases were confirmed since then and supermarkets were among the locations of interest, which led to store closures in some areas. Wearing a facemask is now mandatory when accessing essential services.

Looking after your team and your business Call Healthline free on 0800 611 116 for health advice and information if you experience cold or flu symptoms. At Alert Level 4, only certain businesses can open to the public and have customers on their premises. For example, you can open to customers if you are a:  • supermarket, dairy or food bank • liquor store (in Licensing Trust Areas) • petrol station • self-service laundry • health service, or an entity involved with the deceased or producing health sector materials  • accommodation service • court or tribunal • social and community-based service to maintain critical wellbeing or crisis support • emergency services • Parliamentary services • transport and logistics service, including passenger transport by road, rail, air or sea. If your business provides an essential service, ensure your team is safe and able to follow the government’s advice and health and safety guidelines for a Delta outbreak. Review your plans for operating under an increased alert level with the knowledge that this is a more transmissible variant of the virus and also to ensure that you have enough PPE (such as masks, face shields, hand sanitiser and hand washing products). Further information about Alert Level 4 and the requirements and restrictions for businesses can be found here: https://covid19.govt.nz/alert-levels-and-updates/alert-level-4/

Financial support The wage subsidy was reinstated by Finance Minister Grant Robertson. Businesses will be eligible for $600 per week per full-time employee and $359 per week per part-time employee.

FOR MORE INDUSTRY NEWS FOLLOW US ON 6

FMCG BUSINESS - SEPTEMBER 2021

Any business in the country can apply for the subsidy if they anticipate they will experience a 40% loss of revenue due to Alert Level 4. Robertson says payments will reach them within three days of their application. “A strong health response has led to a strong economic response - we’ve done this before and we can do it again,” Robertson said. The Covid-19 resurgence support payment will also be reinstated, allowing businesses to get up to $1500, plus an extra $400 per employee up to a maximum of 50 full-time employees. Businesses can apply for both payments - the wage subsidy application will be via the Work and Income website, and the resurgence application will be found on the Inland Revenue site. Other resources that may be helpful for your business: The Health Order https://www.legislation.govt.nz/regulation/public/2021/0210/latest/LMS536652.html Unite against COVID-19 (covid19.govt.nz) https://covid19.govt.nz/ Alert Level 4 | What to do at alert level 4 https://covid19.govt.nz/alert-levels-and-updates/alert-level-4/ Doing business at Alert Level 4 | Unite against COVID-19 (covid19.govt.nz) https://covid19.govt.nz/business-and-money/businesses/operating-safely/doingbusiness-at-alert-level-4/ MBIE Website https://www.mbie.govt.nz/about/open-government-and-official-information/ coronavirus-covid-19/ MPI Information https://www.mpi.govt.nz/covid-19-information-and-advice/ Transport Guidelines from Ministry of Transport https://mcusercontent.com/648620202068c06645f38029a/files/fb56b7200ba6-0d9c-9cb9-13ad90b47b4c/Draft_AL_4_Transport_Operator_Guidance_17_ August_2021_FINAL.pdf COVID-19: Locations of interest | Ministry of Health NZ https://www.health.govt.nz/our-work/diseases-and-conditions/covid-19-novelcoronavirus/covid-19-health-advice-public/contact-tracing-covid-19/covid-19contact-tracing-locations-interest Mental Wellbeing For You & Your Workplace — Mentemia https://www.mentemia.com/nz/home

CHECK OUT WWW.FMCGBUSINESS.CO.NZ

[ news ]

NZ SHOPPERS SUPPORT NEW SAFETY MEASURES New research* shows New Zealanders are Chris Quin, CEO, Foodstuffs North Island says, supportive of the Ministry of Heath’s recent “Making it quicker and easier for our team and announcements for people aged 12 and over to be customers – whether they’re customer facing, in our required to wear a face covering when visiting any supply chain, or our supplier partners – to stay safe essential services and for essential workers to be and get a vaccination is the right thing to do and prioritised for the Covid-19 vaccination. we fully support this opportunity for our essential Almost all shoppers are supportive of mandated workers. We appreciate the hard work of the Ministry face coverings while visiting an essential service, of Health and the DHB’s around the country who got with 88% of respondents strongly agreeing with the priority vaccination service up and running.” this decision. Foodstuffs’ shopper research* shows customers Steve Anderson, CEO, Foodstuffs South Island are more worried about their health than they were says, “We welcome the government’s mandate during the first Alert Level 4 lockdown in March for customers and team members to wear face 2020 - with 67% somewhat or extremely worried Chris Quin, CEO, Foodstuffs North Island coverings as a way to keep everyone safe. It is a about this lockdown, compared to 59% in the first government requirement that unless a person has week of lockdown in March 2020. an exemption, our staff and customers must wear a face covering while Shoppers said they feel a lot safer visiting a supermarket when their in-store and our teams will be managing this upon entry.” trolleys and baskets are regularly cleaned (76%), have hand sanitizer About 95% of New Zealanders somewhat or strongly agree that the available (64%) and see perspex protective screens at the checkout (57%). Ministry of Health made the right decision to fast-track vaccinations for *The online survey consisted of 1,001 PAK’nSAVE and New World shoppers across New Zealand conducted between 19 and 20 August 2021. essential workers, including supermarket staff.

[ sponsored content ]

FUSE IS MORE THAN JUST A BRAND, IT’S AN EXPERIENCE The Fuse lifestyle range of audio and power accessories is designed for the nine to five commuters, the nomad travellers, the busy students, and everyone else in between. Ignited back in 2014, Fuse has evolved its technology as quickly as the younger generations adopt it. Fuse offers a range of wireless Bluetooth accessories including speakers, power banks, in-ear and over-ear headphones and cables. The brand has also recently released its new generation Airbudz known as Airbudz II TWS In Ear Headphones into the New Zealand market. The Fuse Airbudz II are a great alternative for shoppers looking for a reliable pair of true wireless stereo headphones but don’t want to spend a fortune on Apple Airpods. Offering wireless charging, users can simply drop the rechargeable case with the in-ear headphone inside onto the wireless

charger and recharge the battery. It can also be charged by plugging the provided USBC cable into the case. Bluetooth connectivity with auto discovery means the Airbudz II are easy to use. Touch controls mean users can skip through tracks, answer calls, and have volume control at their fingertips. Re-engineered microphone and drivers mean that call quality and sound has improved from previous generations and sound has rich bass and clarity. All this with 14+ hours playtime means they are the perfect day to day companion. The Fuse Airbudz II retail for $50 and can be found at all leading petrol and convenience stores throughout NZ. If you would like more information about Fuse Airbudz II or any other Fuse products email sales@signaturenz.com or visit www.signaturenz.com. FMCG BUSINESS - SEPTEMBER 2021

[ news ]

TWO BAKING BRANDS COMBINE TO BUILD A BETTER BUSINESS The New Zealand’s South Island Office investor group, which recently purchased the fast-growing Original Foods Baking Co., has agreed to acquire iconic Australian desserts and baked goods brand Sara Lee from McCain Foods in Australia and New Zealand. This acquisition will create and grow the region’s leading frozen bakery goods company, as it brings together two baking companies that specialise in using locally sourced ingredients to bring delicious treats to families in Australia, New Zealand and internationally. As part of its strategy to grow the Sara Lee business, McCain appointed Mark Mackaness as a dedicated General Manager in 2019 to build standalone business capability, operating independently from McCain and allowing for a seamless transition of the business. As part of this acquisition, Mackaness has invested in the business and will be an equity partner and Group CEO. Sara Lee’s leadership team will be staying with the business, allowing for continuity for teams, customers and suppliers. Mackaness said that beyond the certainty and continuity this

arrangement provides for stakeholders, the strategy is designed for growth for the two companies. “Sara Lee is highly complementary to Original Foods Baking Co.,” Mackaness said. “Original Foods Baking Co. is already branching out to Australia and beyond with its range of brownies, slices, bites and more. At Sara Lee, we have built an iconic Australian bakery brand, and our quality ice cream, cheesecakes, apple pies, danishes and puddings have been a household favourite in Australia and New Zealand for 50 years.” “This partnership allows both businesses to gain exposure to new channels and markets as we have different strengths in retail and foodservice in Australia and New Zealand.” “Since 2013, McCain has invested more than $AUD40 million in Sara Lee’s product innovation and infrastructure to create a successful, well-run business that is prepared for growth and future, so we will look to continue to innovate and maintain our growth journey from day one,” says Mackaness. Sara Lee marked their 50th birthday in June, and Original Foods Baking Co. celebrated 30 years in the same month.

[ sponsored content ]

POPULAR SNACK FOODS LAUNCH IN SUPERMARKETS Located in Auckland and established in 2007, Diversity Foods are 100% New Zealand owned and operated. Their state-of-the-art food processing facility specialises in the supply of premium, value added, snack foods to both the retail and food service markets. General Manager Evan Hill told FMCG Business: “From our humble beginnings to now employing over 70 full time staff and with continued reinvestment in our business with purchasing some of the latest manufacturing equipment, we have seen considerable growth which has enabled us to now enter the frozen retail market. “Given our production capabilities we pride ourselves on being able to deliver quality, competitive and market relevant products in a timely fashion ensuring continued growth and a competitive edge for not only ourselves but also, most importantly, our customers. “Our Machi range is particularly well known and extremely popular within the food service channel, with our Spicy Kebabs, Large Spring Rolls, Chicken Sui Mai on a stick and Dim Sims being a staple in most bakeries and lunch bars throughout the country. “Foodstuffs’ Delis have also taken on board these products and offer them as a hot food item within Pak’n Save, New World and Four Square. “We have now launched our premium Machi snack food in a frozen range available through South Island Pak’n Save stores, New World, Four Square and selected North Island stores. The range is predominantly par cooked, ready to heat & eat for convivence and to be enjoyed by the whole family,” says Hill. 8

FMCG BUSINESS - SEPTEMBER 2021

[ fresh produce ]

BEST IN SEASON Spring has arrived and fresh herbs are naturally abundant now, although they are available yearround due to hydroponic growing and state of the art glasshouses. Easy peel Afourer and Richard’s Special mandarins are at their peak this month. Sweet and juicy tangelos will make an appearance and are in season until late December. Seedless New Zealand Navel oranges are in good supply until December, with limes reaching the end of their season in September. Lemons remain on stream year-round. The Californian grape season has kicked off, so imported grapes are good buying from now until January. Varieties available include red, green and black and a selection looks great visually in your produce department.

Grapefruit

“MUSHROOMS ARE ONE OF THE WORLD’S MOST NATURAL, RESOURCE EFFICIENT CROPS.”

Members of the citrus family, grapefruit have a sweet yet tart flavour and a high juice content. They mature from May through to January so are in full swing now. Main varieties grown in New Zealand include the Morrison Seedless which are large and golden, the Star Ruby with their beautiful pink skin and flesh, and Cutlers Red, characterised by bright red/orange skin and white flesh. What to look for: Choose grapefruit that feel heavy for their size, are plump and with smooth, thin skin. The deeper the colour, the more intense the flavour. Storage/handling: Grapefruit can be stored at room temperature, out of direct sunlight for one week, but will last much longer if they are refrigerated. Refrigeration also ensures their vitamin content is not diminished. Nutrition: Grapefruit are a good source of vitamin C, which helps protect cells against free radical damage and support immunity. They also contain potassium, essential for healthy fluid and mineral balance.

Join us on

Mushrooms Mushrooms are one of the world’s most natural, resource efficient crops. They take only six weeks to grow from seed to plate and require minimal water –

just 20 litres to produce 1 kilogram of mushrooms. Mushrooms are incredibly versatile, flavourful, nutrient dense and with their substantial texture, provide a great alternative for meat in vegetarian dishes. Main varieties available in New Zealand include White Button, large and small Portobello, Swiss Brown, Shiitake and Oyster. What to look for: Choose mushrooms that are firm to touch with a fairly even colour. As with all mushrooms, the fresher the better. Stems are a good indicator of freshness, so select strong, healthy ones. Mushrooms are incredibly fragile and susceptible to bruising so often, even with care taken, they may have some marks or blemishes. However, this won’t affect the taste or quality of the mushroom. Storage/handling: Mushrooms consist mainly of water and are very delicate, so if not stored properly they can deteriorate fast. They should be kept constantly refrigerated in a dry place with air circulation. Pre-packed mushrooms in cardboard packaging (specially designed for mushroom storage) are great for customers to grab and go. For loose mushrooms, always have brown paper bags on hand and ensure stock rotation to ensure freshness. Nutrition: Mushrooms are a good source of pantothenic acid for release of energy from fats. They are also a source of vitamin B6 which is vital in allowing the body to utilise iron.

FMCG BUSINESS - SEPTEMBER 2021

www.unitedfresh.co.nz

New ‘Local As’ Granola Range – Supporting NZ As a proud NZ business, pure delish were aware of challenges some Kiwi businesses have faced in light of the Covid-19 pandemic and after much thought, ‘pure delish Local As’ was born. A delicious, hand-crafted range of granolas made from 100% NZ ingredients – Macadamia & Manuka Honey, Blackberry, Blueberry & Boysenberry and Nectarine, Blueberry & Horopito, 10% of profits go to the Forest Lifeforce Restoration Trust. info@puredelish.co.nz www.puredelish.co.nz

Selling Like … Lolly Cakes

New Molly Woppy Plant-Based Cookies Fresh from the Molly Woppy kitchen to you are three new handmade positively plantbased cookies! It’s love at first bite® with three delicious flavours available - NEW Dark Choc Caramel Popcorn, Oaty Apricot Super Seedy and Choccy Coconut Ruff (also Gluten-free). Contact our team on 09 8286095, email info@mollywoppy.co.nz or visit our website www.mollywoppy.co.nz

Run don’t walk for a taste of Cookie Time’s new Kiwi classic! In hot demand, this limited edition take on a great Kiwi favourite has all natural colours and flavours, and no preservatives. It’s the classic lolly cake taste of malt, shredded coconut, and PASTEL pink, yellow and green lollies. Made with real white chocolate and real ingredients, batchbaked in traditional rack ovens. www.munchtime.co.nz

Whittaker’s adds two new blocks to its Artisan Collection Whittaker’s has added two blocks to its New Zealand Artisan Collection – Rich Cocoa Creamy Milk Chocolate 100g and Canterbury Hazelnut in Creamy Milk Chocolate 100g. Like all Whittaker’s chocolate, the blocks are made from beans-to-bar at Whittaker’s one factory in Porirua. Both are permanent additions to Whittaker’s Artisan Collection and are available now in supermarkets nationwide. whittakers.co.nz

Treat Your Tastebuds Barista Bros is introducing an epic new range that offers up the familiar, delicious flavours that Kiwis know and love, but without the added sugar. In recognition of the love affair Kiwis have with coffee, Barista Bros has rereleased its range of Iced Chocolate, Espresso and Double Espresso flavours, developed with health conscious consumers in mind. www.ccamatil.com/nz/Our-beverages/ Barista-Bros FMCG BUSINESS - SEPTEMBER 2021

[ feature ]

NZ POTATO INDUSTRY CONTINUES TO GROW The New Zealand Potato Industry remains a billion dollar plus industry despite a year of crises. The total value of the NZ potato industry now sits at $1.16 billion, a 58% growth rate since targets were set in 2013. CEO of Potatoes New Zealand Chris Claridge says, “this result shows the immense value of our processing sector - 55% of our locally grown potatoes produce fries and another 12% produce crisps. A strong domestic market for NZ processed potatoes underpins our industry and maintains our growers’ resilience.” He says the findings in the MBIE Final Report into European Dumping are very disappointing for growers and the Potatoes NZ board. MBIE found the confirmed dumping of imported potato fries into the NZ market as not of material threat to the local industry, which Claridge says signals to NZ importers and EU exporters that the NZ government is leaving the gate open. “The obvious risk here is a real material threat to our domestic potato processing market and our growers”, he says.

FMCG BUSINESS - SEPTEMBER 2021

The NZ Potato Industry Forum and Annual General Meeting were held in Canterbury and Pukekohe on the 13th and 19th of August with a theme of Sustainable Growth, in the South and North Island growing regions. The forums’ focus was on industry value growth and tested the appetite of industry for further pursuit of domestic market security. In addition, all aspects of sustainable development; economic, social, and environmental impacts, were covered in the day long forums with keynotes from Bernard Hickey providing an economic report and Katherine Rich speaking on the New Zealand supermarket duopoly.

Fast Facts • The NZ potato industry value is over $1 billion dollars per annum • NZ processed potatoes account for 67% of NZ potato industry value • Currently 85% of all fries eaten in NZ are NZ fries • 15% of fries consumed in NZ are imported For more information visit www.potatoesnz.co.nz

[ feature ]

26 Seasons Co-founder Matt Keltie

26 SEASONS: MICRO IS SET TO GO MACRO Some supermarkets are now offering the freshest seasonal microgreens, all sourced from indoor vertical farms in Auckland and Wellington. The launch of 26 Seasons – a local company that sustainably grows and sells microgreens – is set to shake up the way we think about where and how our food is produced in New Zealand. Microgreens are a true superfood - up to 100 times more nutritious than mature plants and with intense and unique flavours packed into every tiny leaf. 26 Seasons’ extensive range of microgreens are grown from seed, not on acres of farmland, but stacked high in New Zealand’s first commercial indoor vertical farms where sunlight is swapped for LED lights and there is no soil to be seen. These include a former nightclub in Wellington and the company’s new flagship 420 square metre indoor vertical farm in Penrose, Auckland. Co-founder of 26 Seasons, Matt Keltie, says the controlled growing environment produces pesticide-free produce all year round, that is better tasting, better-for-you and much gentler on the planet. “Growing produce without soil might seem unnatural, but it’s far from it. Our innovative LED lighting technology mimics sunlight in the controlled environment of our indoor farms. This means our crops aren’t affected by weather or seasons, enabling us to achieve on average a full growth cycle every two weeks, harvesting 26 seasons in a year. “Our customers can enjoy the freshest microgreens at the very peak of their flavour and nutrients all year round,” he says. “When people taste them, they realise they are so much more than just a garnish,” says Keltie. The cutting-edge indoor grow systems are also a more sustainable way to grow food. Seeded grow mats, made with

biodegradable wool (soon to be domestically produced organically certified hemp), are stacked high on racks where the crops thrive under a proprietary lighting system, natural air and water (95% of which is recycled). There are no chemical pesticides, only a measured amount of fertiliser and the indoor farm’s footprint is considerably less than a traditional outdoor farm. And unlike most greens that immediately start to deteriorate as soon as they are harvested and bagged, 26 Seasons microgreens don’t. Sold in the trays they’re seeded in they are a living product and remain that way until harvested at home. 26 Seasons greens are sold locally in supermarkets and fresh food stores like Farro and Wellington’s Moore Wilson, from the company’s first-ofits-kind indoor grow stands, complete with automated LED lighting and watering systems. Janene Draper, co-founder of Farro Fresh, says it is redefining what it means to buy fresh. “These vibrant, living microgreens are shaking up the future of the produce aisles. I love that they are not only packed with vitamins, but they continue to grow right up to when you ‘snip to eat’ them at home, nothing gets fresher than that!” says Draper. The range includes everything from pea shoots, sorrel, radishes and broccoli to coriander, basil, wheatgrass and mustard microgreens. Customers can buy trays of single microgreens or mixes – such as a salad mix, sandwich mix or smoothie mix – and harvest them at home by snipping them at the roots when they’re ready to eat them. The RRP is $9.95 for a tray. For stockists visit www.26seasons.co.nz FMCG BUSINESS - SEPTEMBER 2021

[ health & wellness ]

CAN GUT HEALTH AFFECT YOUR IMMUNITY? Did you know that 70-80% of your body’s immune cells are found in the gut? There’s plenty of evidence to show that your gut and immune system work together closely to regulate and support each other. Specifically, your immune system promotes the growth of beneficial gut bacteria and a healthy gut microbiome sends signals back to your immune cells to support their development and fine-tune their immune responses. This means that, if you can keep your gut healthy, you’re also supporting your body’s protective responses. A healthy diet can have a positive impact on your immune defences by increasing the diversity of your gut flora. The dietary fibre found in plantbased foods has been linked to the growth of beneficial bacteria in the

gut and studies have revealed that the types of fibre found in fruits, oats and nuts can be beneficial for strengthening the immune system. Other foods that support good gut health include probiotics (such as yoghurt, kefir, sauerkraut and kombucha), prebiotic foods (such as legumes, onions and garlic), and foods rich in vitamin D such as oily fish (sardines and tuna) and eggs. On the other hand, a diet high in animal protein, saturated fat, salt, sugar and low in plant fibre is often linked to immune disorders associated with poor gut health. Try to ditch highly processed fatty foods and excessive alcohol consumption and replace them with a wholesome gut-friendly diet. Everything you choose to eat can play a role in your body’s ability to support immunity.

Foods that support good gut health include probiotics, such as yoghurt.

[ sponsored content ]

DRINK YOURSELF HEALTHY! New Zealand family owned Greenlea Premier Meats has created a range of bone broths and bone broth tonics to appeal to the growing health and wellness category. Whether used in cooking or as a readyto-drink beverage, bone broth is well known for a wide range of benefits including gut health and boosting immunity. All products in the range are a source of protein and collagen, keto/paleo friendly, gluten free, dairy free, and hormone and antibiotic free. The broths are all beef or chicken based and are slow simmered for 24 to 48 hours to extract all the goodness. The tonic range has added herbs and spices for a pleasant and healthy afternoon replacement to tea or coffee. The added ingredients have been chosen not only for flavour but also for their known health benefits … such as cinnamon, maca, turmeric and ginger. Bone broth is a well know category in North America, and the strong 14

FMCG BUSINESS - SEPTEMBER 2021

trend, led by the surge in health and wellness products, sees sales figures soon to equal or even surpass the chilled soup category. Restore.co.nz For ordering information email: restore@greenlea.co.nz

[ health & wellness ]

5 SIMPLE HEALTH & SAFETY TIPS Try to protect yourself and others from Covid-19 with these simple steps that can slow the spread of the virus.

1. Wash your hands regularly especially: • after blowing your nose, coughing or sneezing • after visiting a public space, including public transport, markets and places of worship • after touching surfaces outside of the home • after touching money • before, during and after caring for a sick or vulnerable person • before and after eating • after using the toilet • before and after eating • after handling rubbish • after touching animals and pets • after changing babies’ nappies or helping children use the toilet • when your hands are visibly dirty. You can use any temperature of water to wash your hands, as long as you use soap. Cold water and warm water both kill germs and viruses.

Use a sanitiser that contains at least 60% alcohol and rub it into your hands for at least 20 seconds to ensure full coverage.

2. Wash your hands properly Follow these steps to wash your hands properly: Wet hands with running water. Apply enough soap to cover wet hands. Scrub all surfaces of the hands — including the back of hands, between fingers and under nails — for at least 20 seconds. Rinse hands with running water. Dry hands thoroughly.

3. How to use hand sanitiser Use a sanitiser that contains at least 60% alcohol and rub it into your hands for at least 20 seconds to ensure full coverage.

4. Wear a face mask Wear a face covering and keep 2 metres distance from others when leaving your home. Especially if it is difficult to maintain physical distance from others. You legally must wear a face covering: • if you are a customer or an employee involving customer contact at an Alert Level 4 business or service. This means you need to wear a face covering when you visit places like the supermarket, pharmacy or petrol station. • on public transport and at departure points, for example train stations and bus stops

• • • •

on flights in taxi or ride-share vehicles — drivers and passengers when visiting healthcare facilities inside any Alert Level 4 businesses and services that are still open and involve customer contact, including supermarkets, pharmacies and petrol stations. There are exemptions for face coverings and you do not need to wear a face covering if you are: • under the age of 12 • have a physical or mental illness • have conditions or disability that makes wearing a face covering unsuitable.

5. Scan in Use the NZ COVID Tracer app if you can. The app keeps us one step ahead of the virus — the more we scan the safer we will be. Turn on Bluetooth tracing in your app. Bluetooth tracing keeps track of who you have been near, while maintaining everyone’s privacy. Remember to keep scanning QR codes — both are important for contact tracing. If you do not use the app, use whatever method works for you, like the NZ COVID Tracer booklet. Encourage your family, whānau and friends to do the same. If you have Covid-19 symptoms, contact your doctor or Healthline on 0800 358 5453 or your iwi health provider. For more information visit https://covid19.govt.nz/ FMCG BUSINESS - SEPTEMBER 2021

HEALTH & BEAUTY TRENDS

Innovations in natural skincare drive sales. The recent lockdown and restrictions in New Zealand have resulted in a return of the ‘salon at home’ experience, with increased demand for skincare products such as serums, eye creams and masks. Some of the new products we see emerging in supermarkets strike the perfect balance between nature and science.

Glow Lab; Science + Nature a winning combo Globally the skincare market has seen a significant shift in the last three years with consumers demanding greater transparency in the products they purchase, says Brand Manager Fenella Brown. “No longer a trend but a consumer movement, the natural segment now makes up 25% share of total NZ Grocery skincare sales*, as consumers move to using natural products across their entire skincare repertoire. “With naturals being a key growth 16

FMCG BUSINESS - SEPTEMBER 2021

segment in the beauty category it’s not surprising to see global brands launching naturally inspired skincare ranges. Glow Lab however, has a unique position in the natural segment – combining natural ingredients with scientifically proven naturally derived active ingredients to deliver natural skincare products that work. And this science + nature offer is resonating with consumers, voted Best Clean Beauty Brand in the 2021 Lifestyle Remix Awards,” says Brown. She says: “Almost four years since launch, Glow Lab is already NZ Grocery’s market leading natural personal care brand and continues to drive growth for the natural skincare category*. Glow Lab Age Renew, the first dedicated natural anti-ageing skincare range in supermarkets, delivered over $1.3m in largely incremental growth in its first year, and today continues to be one of the key growth areas in the natural segment.”

[ category insights ] The last quarter has seen further new ranges launch; Glow Lab Sensitive & Glow Lab Booster range. “Aligned with emerging skincare trends, these new ranges harness active ingredients to treat specific skincare concerns and deliver clinically proven results. Both ranges are already proving to be driving incremental growth for the category,” says Brown. “Glow Lab is playing an important part in driving category sales and profit growth, delivering premiumisation through trade up from mainstream brands, and bringing new customers to supermarkets by providing products comparable to pharmacy and department channels,” explains Brown. * IRI MarketEdge Data, T NZ Grocery, MAT to 04.07.21

#1 Natural skincare brand essano reigns supreme with concentrated serums* Essano were first to market with concentrated serums in 2020 and now have led the way with a carefully curated extension of the range in 2021. The essano Advanced Brightening 20ml Serum is already the Number 1 natural serum in stores with the new additions on track to follow, growing at 158.8%*. Consumers no longer need to compromise with their skincare to achieve tailored solutions, says Brand Manager Vanessa Sharpe. She explains: “essano’s Concentrated Serums have each been crafted with a high concentration of active ingredients that target specific skin concerns and provide rapid results.” “essano’s Concentrated Serums strike the perfect balance between nature and science by harnessing the most powerful, natural ingredients that work to maximise results, all with minimal irritation.” “The range helps various skin concerns from pigmentation and dark circles, to fine lines and dry skin. All serums are cruelty-free and made right here in New Zealand at essano’s state of the art manufacturing facility in Auckland.” “The serum range has been designed with consumers needs top of mind and as such each has a clear product name that explains exactly what the product will do, supported with the concentrated hero ingredient,” says Sharpe. The range includes: • Wrinkle Rescue with a natural Retinol alternative. • Advanced Brightening with Vitamin C. • Intense Hydration with Hyaluronic Acid. • Eye Perfect with Peptides. • Skin Tone Perfector with Niacinamide and Acetyl Glucosamine. • Sensitive Support with Ceramides.

“THE RANGE HELPS VARIOUS SKIN CONCERNS FROM PIGMENTATION AND DARK CIRCLES; TO FINE LINES AND DRY SKIN.”

Concentrated Serums Bringing active natural ingredients to grocery Naturally Powerful

Rapid Results

hydration?

fine lines?

brighten?

dark circles?

soothe?

*IRI MarketEdge NZ Grocery – Total Facial Skincare, MAT to 08/08/21

Source: NIELSEN SCANTRACK Total Supermarkets - MAT to 15/08/2021 Val $ Sales

Val % Chg YA

TOTAL HAND & BODY SKINCARE (EXCL. BABY)

$22,704.92

-5.09

BODY

$20,244.37

-4.19

HAND

$2,460.55

-11.85

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.

breakouts?

MADE IN NZ

FMCG BUSINESS - SEPTEMBER 2021

RJ’S IS ASKING THE QUESTION:

WHAT IS REALLY IN OUR FOOD?

RJ’s is trying to do something better for the planet, the rainforests and endangered animals like the orangutan.

FMCG BUSINESS - SEPTEMBER 2021

New Zealand based confectionery brand RJ’s (as seen on our cover) recently announced that they are moving to 100% palm oil free production and are urging Kiwis to “ask the question” about what’s in their food. Palm oil is found in up to 50% of all supermarket products, from food to cleaners to cosmetics, but many people don’t know it because under New Zealand labelling laws it can simply be claimed as ‘vegetable oil’ on the packaging. The iconic confectionery company, who operate from their factory in Levin, have not only removed palm oil, but also worked with suppliers to make sure all ingredients used in RJ’s products are 100% palm oil free. Jason Clements, RJ’s Confectionery General Manager for New Zealand and International, is proud of the commitment they’re making to the environment. “Here at RJ’s, our new mission statement is ‘Makes it Better’ and going 100% palm oil free is an exciting step in our journey,” he says. “Ultimately, we are both manufacturers and consumers and we know that it is our consumption habits that are driving an increasing need for palm oil. If we can both educate and provide a better alternative – then it will hopefully make a small difference to what has become a large environmental problem. “Very few New Zealand companies have made this step with both cost and complexity proving a barrier however we know it is important to our customers with our Kiwi lolly lovers asking us to do more. We’re excited to share this first step in our sustainability journey with them. When consumers ask for better from businesses like ours, they can effect real change.” Removing palm oil and its derivatives from RJ’s range of products was a journey in itself. Over the course of three years, the business reviewed all ingredients across their supply chain, and, after rigorous testing and trialing to ensure that the RJ’s products Kiwis know and love remained the same, decided that both coconut and rice bran oil were the best alternatives from an environmental perspective, as well as a quality and flavour one. “Sustainability isn’t just a consumer trend businesses’ need to react to, it’s simply the right thing

[ cover story ]

to do,” says Clements. “We’re committed to providing the best product to our customers and we can now show real proof that we’re doing something better for our lollies, our customers, the planet, the rainforests and endangered animals like the orangutan.” To make way for palm oil plantations, rainforests in Southeast Asia are being cleared at an alarming rate, equivalent to around 300 rugby fields every hour, to keep up with the demand. This causes the loss of irreplaceable habitat, wildlife endangerment and enormous CO2 emissions.

New marketing campaign To help promote the message RJ’s have kickstarted a major marketing campaign to help build awareness. Over recent months you may have seen educational videos about palm oil or other behind the scenes insights from the team in Levin via their social platforms. The brand will soon take it to another level

with their first ever TVC as well as significant out of home and store activity. Amy Law, Sales Director for RJ’s, is extremely excited for how RJ’s intend to bring the message to the market. “Our success to date has been built on having great tasting product, but to now be able to say that product is also better for our environment is very satisfying. We are excited about growing the understanding of palm oil through our first ever large marketing campaign and also very thankful for the strong support from our retail partners. Our hope is that we can continue to educate both consumers and manufacturers alike to make real change.” The full RJ’s product lineup includes iconic Kiwi lollies like Mackintosh’s, Oddfellows, Fabulicious and Heards as well as old favourites like Black Knight and RJ’s Licorice Logs, Allsorts, Twists, Balls and Bullets.

FAST FACTS ● RJ’s New Zealand reviewed all their ingredients and changed the recipe in any product where palm oil was an existing ingredient. ● Palm oil is high in saturated fat. One tablespoon of palm oil contains 55% of the daily recommendation of saturated fat. ● In the past 10 years, the orangutan population has decreased by 50% as a result of habitat loss from forest clearing for palm plantations. ● RJ’s commitment to sustainability has removed 100 tonnes of palm oil per annum from supply, which is the equivalent of 38 rugby fields of deforestation. ● RJ’s employ over 120 people at their Levin based factory.

“GOING 100% PALM OIL FREE IS AN EXCITING STEP IN OUR JOURNEY” JASON CLEMENTS, RJ’S CONFECTIONERY GM FOR NEW ZEALAND AND INTERNATIONAL

FMCG BUSINESS - SEPTEMBER 2021

COOL DRINKS Innovative thirst quenchers are arriving in store.

Natural immunity shots, non-alcoholic cocktails, locally made sodas and delicious Hokey Pokey Milk from Lewis Road Creamery are among some of the popular new drinks available now in New Zealand. Meanwhile in the USA, Ocean Spray has launched a caffeinated sparkling water line, expanding beyond the juice aisle. The caffeinated beverage market in the USA is abuzz with innovation. New drinks there offer energy alongside immune support, better-for-you ingredients and a sports nutrition spin.

Daily Good Daily Good immunity shots are formulated with natural and organic super-ingredients to boost your immunity with three flavourful tonics - providing a fully rounded health boost with turmeric to decrease inflammation, ginger to aid digestion and the antioxidant benefits of blackcurrant. The natural immunity booster is packed with super ingredients supported by zinc and New Zealand manuka honey. Daily Good 20

FMCG BUSINESS - SEPTEMBER 2021

[ category insights ]

“DAILY GOOD IMMUNITY SHOTS ARE FORMULATED WITH NATURAL AND ORGANIC SUPERINGREDIENTS” provides value, with seven daily doses in one small glass bottle also eliminating single use plastics. Your daily shots can be taken neat or enjoyed diluted in hot or cold water. Proudly New Zealand-made and -owned, Daily Good is made from only the best ingredients sourced locally in New Zealand and from Daily Good’s partner farm in Fiji, which sustainably farms USDA-certified organic turmeric and ginger, where the ingredients can be traced back to the very field that they were planted in and to the very person who harvested them. Daily Good is developed by Red Shoots, a dynamic New Zealand business developing innovation in the health and wellbeing space. Marketing Manager Kathryn Hayward explains: “Our vision is to develop high quality authentic health and wellness brands that are affordable to the consumer in New Zealand supermarkets. We are proud of our use of whole ingredients (no powders

or fillers), of the traceability of our organic ginger and turmeric and of the work we have done developing our relationship and providing secure revenue for our partner farm, Ranadi Organics in Fiji.” Read more at www.dailygood.co.nz Contact: info@redshoots.co.nz

A non-alcoholic drink committed to moderation Finery 0% Cocktails is a locally made, alcohol-free beverage range that comprises a special blend of distilled extracts, tinctures and natural flavours. The range is inspired by nature and embraces clean flavours – with zero alcohol and has been carefully crafted by Finery’s beverage team. These premium beverages are made with honest, all-natural, local ingredients. Comprising aromatic botanicals, delicate fruit juices and teas, they are best enjoyed as an accompaniment to fine food and good conversation. Finery has taken its cues from classic cocktails but removed the alcohol, making it an even healthier option than before. The perfect answer for non-drinkers or those who want to cut back their intake. Finery is passionate about moderation drinking and its four-pack offering reflects this ethos. Flavours include Grapefruit Cucumber and Mint for a refreshing hit; Ginger, Green Tea, Honey, Mint and Lemon deliver an uplifting aromatic ginger kick; Vanilla and Elderflower

LET’S CREATE BETTER FUNCTIONAL DRINKS, TOGETHER.

INGREDIENTS & SERVICES TRENDS AND INSIGHTS BESPOKE BLENDING

“FINERY HAS TAKEN ITS CUES FROM CLASSIC COCKTAILS BUT REMOVED THE ALCOHOL”

CONCEPT DEVELOPMENT

TEXTURE NUTRIENTS COLOUR FLAVOUR AND MORE

HAWKINS WATTS NEW ZEALAND SALES@HAWKINSWATTS.COM HAWKINS WATTS NEW ZEALAND HAWKINSWATTS.COM

[ category insights ]

is addictively smooth and sweet, while Lemon Myrtle, Lime and Black Tea is a new take on the classic lime and soda. Finery 0% drinks are sold in packs of four with an RRP of $14.99. Opt for a flavour of your choosing, or try all four with the selection pack. Available online at www.finerycocktails.co.nz and selected supermarkets nationwide.

“FOXTON FIZZ IS SUPPLIED TO THE GROCERY CHANNEL BY DKSH NEW ZEALAND.”

Christmas and Easter, and it seems this long tradition continues. Foxton Fizz is supplied to the grocery channel by DKSH New Zealand. Phone: +64 6 356 5323, Email: customerservice.nz@dksh.com

Foxton Fizz Foxton Fizz has been increasing distribution in the last 12 months, adding to the 103-year-old brand’s footprint in the grocery and convenience channels. In addition to increased distribution, they’ve been working on their NPD and the recently introduced Foxton Fizz 1.5L bottles have proven to be a hit, with sales increasing strongly over the last six months. Creaming Soda leads in terms of sales, followed by Raspberry and Kola. While Foxton Fizz has been available in the 250ml bottles for over 100 years, the 1.5L PET bottles offer an affordable take home and share option, with their research indicating that consumption occasions often include events and gatherings of friends and family. The small-town soda drinks brands, of which there used to be over 200, were closely associated with family gatherings and holidays such as Source: NIELSEN SCANTRACK Total Supermarkets - MAT to 15/08/2021 Val $ Sales

Val % Chg YA

TOTAL BEVERAGES

$903,254.26

5.53

CARBONATED SOFT DRINKS

$404,901.10

4.37

FRUIT JUICE AND DRINKS

$183,339.66

1.75

RTD ENERGY BEVERAGES

$118,346.21

12.33

RTD OTHER BEVERAGES

$57,950.70

5.63

SPORTS LIFESTYLE

$30,379.98

19.34

WATER

$108,336.60

6.11

FMCG BUSINESS - SEPTEMBER 2021

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SUSTAINABLE HOMECARE Environmentally friendly cleaning and homecare products are popular choices. Following the most recent outbreak of Covid-19 in New Zealand, sanitizers and cleaning products have been top of mind for many shoppers. We see a new and more thorough cleaning routine at home, with eco-friendly products among the rising trends.

Earthwise – Effective. Naturally “Earthwise is New Zealand’s market leading eco-friendly cleaning brand, with retail sales exceeding $21m, and over 48% share of NZ Grocery environmental cleaning sales,” says Assistant Brand Manager Georgia Butcher. “The brand continues to be a key growth driver, contributing over 44% of total environmental cleaning growth.” With sustainability a movement not a trend, consumers are increasingly looking for natural cleaning products that are effective, do not use harsh chemicals, and utilize more sustainable packaging options. Consumers are voting with their feet too. According to a Colmar Brunton study 48% of New Zealanders have deliberately switched to a brand or service that is more sustainable. Butcher comments: “Consumer NZ recently tested New Zealand’s 24

FMCG BUSINESS - SEPTEMBER 2021

[ category insights ] multi-purpose sprays to see if they actually work, and Earthwise’s Multi-Surface Cleaning Spray Citrus & Mint 500ml has been given a big tick of approval! We’ve always been confident our cleaning products are effective, naturally.” Earthwise believe switching to true eco-friendly products shouldn’t cost the earth (planet and pocket) either. Earthwise’s affordable range of cleaning products are made right here in New Zealand, in an Environmental Choice certified factory, using plant powered, biodegradable ingredients. With bottles made from at least 75% recycled plastic, the company has also reused and diverted 650 tonnes of plastic from landfills since October 2018. By 2025 Earthwise has committed to having plastic packaging 100% reusable, recyclable, or compostable. New Earthwise Anti-Bacterial Laundry Sanitizer 1L, is proven to kill 99.9% of germs without the use of chlorinated bleach. Available now in your local supermarket. *IRI MarketEdge Grocery: Total NZ Grocery, Dollar Sales, MAT 25/07/2021 **Colmar Brunton, Better Futures Report February 2020

Eco Turtles “Eco Turtles - the future of cleaning - are an environmentally friendly cleaning solution that is that you can refill and use your bottle again and changing the way you clean,” says Anita Butkovic, again without stretching, tearing, or breaking,” Director at Laganini Ltd. says Butkovic. She explains: “Cleaning tablets that are 100% She adds: “Cleaning up our planet begins in our natural, eco-certified, biodegradable, non-toxic, homes. Starting with cleaning products – items cruelty free and paired with reusable bottles that traditionally sold in disposable plastic bottles, we can are designed for refills, not landfill. Each tablet eliminate over 2 billion single-use plastic bottles in makes 750ml of cleaning solution and works like a New Zealand alone because our cleaning products regular cleaner. are in reusable bottles. Our products have helped to “The tablets are a simple way to reduce our eliminate single-use plastic bottles from landfills and carbon footprint due to being compact, easy to the ocean, while also reducing toxic runoff entering store and transport. They 100% reduce plastic and our waterways. packaging waste. “For a cleaner tomorrow shop Eco Turtles at “It’s simple to use, our tablets are colour-coded selected New World and PAK’nSAVE stores and for easy reference - just fill your Eco Turtles reusable online at ecoturtles.co.nz.” bottle with water, drop in the tablet and Source: NIELSEN SCANTRACK Total Supermarkets - MAT to 15/08/2021 get cleaning! Val $ Sales Val % Chg YA “The Eco Turtles TOTAL HOUSEHOLD CLEANERS $58,419.72 -6.77 reusable spray bottle is designed to be used CARPET CLEANERS $4,077.83 1.26 over and over again. DRAIN CLEANERS $2,746.87 8.68 It is made from a FLOOR SYSTEMS $127.62 -58.45 durable recyclable HOUSEHOLD ALL PURPOSE CLEANERS $40,463.34 -9.15 PET that won’t shatter. HOUSEHOLD SCOURING AGENTS $5,707.28 -1.42 The spray pump is MOULD TREATMENTS $3,181.11 -5.55 thoughtfully engineered OVEN CLEANERS $2,115.66 0.52 to be comfortable and long-lasting. This means

“48% OF NEW ZEALANDERS HAVE DELIBERATELY SWITCHED TO A BRAND OR SERVICE THAT IS MORE SUSTAINABLE”

FMCG BUSINESS - SEPTEMBER 2021

[ good business ]

AUCKLAND’S FIRST GREEN STAR COUNTDOWN TO OPEN IN WAIATA SHORES

The new 4200sqm store is a $30+ million investment by Countdown.

Countdown has announced its first Green Star rated Green Star is an internationally recognised supermarket in Auckland will open in time for rating system for the design, construction Christmas within the new Waiata Shores and operation of buildings, fitouts and development in Manukau. communities. Countdown opened The new 4200sqm store is a $30+ million New Zealand’s first Green Star investment by Countdown in this growing supermarket in Richmond in part of South Auckland and is expected June this year. to create around 100 new jobs. The Some of the emissions, water, supermarket has been designed, built paper and energy saving features in and will operate in an environmentally the two Green Star stores include: conscious way that meets international • Solar panels that will generate Green Star certification standards. 10-15% of the store’s total energy Countdown’s Director of Property, Matt • Transcritical refrigeration systems that Grainger, says construction today has a use natural refrigerant gases responsibility to leave a lighter footprint on the • L ED lighting which is 35% more efficient Countdown’s Director of Property, Matt Grainger planet. “Auckland’s growth means that we have to than traditional lighting continually invest in our store network, but it doesn’t • Water-saving taps to reduce water use mean that we have to do things the way they’ve always • An Energy Management System, which provides regular been done,” says Grainger. “We love the ethos behind Waiata Shores updates on store energy and water use and we’re proud to be opening a store here that has been specifically • Doors on fridges and freezers to reduce energy use. Every 10 doors designed to have a lower environmental impact for the community and save enough energy to power a NZ home for a year. be fit for the future as the area grows. • Digital shelf labels to reduce paper use “Countdown has some incredibly ambitious sustainability goals to • EV chargers for customer cars achieve by 2025, including a 4 Green Star design and as-built rating • More bike parks linked with local cycleways to help encourage biking for all of our new property developments, and a 5 Green Star minimum and reduce short car trips to the supermarket. standard by 2025. Our new Waiata Shores store is an important step The new Countdown Waiata Shores will also include a Drive-Up towards that goal, and while it’s not simple or cheap to meet Green Star option for online order pick up, an in-store Countdown Pharmacy, an standards, it’s an investment we need to make,” says Grainger. extensive range of fresh produce, and an in-store bakery, deli and Cellar. 26

FMCG BUSINESS - SEPTEMBER 2021

[ good business ]

KIWIHARVEST OPENS INVERCARGILL BRANCH TO MEET RISING DEMAND New Zealand’s largest food rescue organisation, KiwiHarvest, has announced the opening of its new Invercargill branch. The branch has been operational since August, enabling KiwiHarvest to meet growing food demand in Invercargill – particularly as food demand spiked in the wake of extended Alert Level 4 restrictions. The Invercargill branch will enable the organisation to deliver food to communities initially across Invercargill, and potentially throughout the Southland region in the months to come. Gavin Findlay, KiwiHarvest CEO, says, “There has been a real need for food support in the Invercargill region and we have been exploring establishing a presence there for the last six to 12 months. But it is only recently that we received enough funding to set up this branch thanks to generous support from Countdown and through a number of local grants.”

KiwiHarvest CEO, Gavin Findlay

Jessie Beer, KiwiHarvest’s Invercargill Branch Coordinator says: “It has certainly been a challenge heading into lockdown during the very early days of getting established, especially as demand will grow as lockdown continues. Currently we are working with three local supermarkets, two wholesalers, and are in the process of onboarding new donors to service this rising demand.” KiwiHarvest collects surplus and donated food and distributes it throughout New Zealand to community organisations, providing food support to those in need. With branches in Auckland, North Shore, Dunedin, Invercargill and Queenstown, it is servicing demand for 250 registered charities and community groups. Since its establishment in 2012, it has rescued over 6.3 million kilos of food and delivered over 18 million meal equivalents to vulnerable Kiwis. For more information visit www.kiwiharvest.org.nz

[ sponsored content ]

BACON OR SAUSAGE? Bacon and sausages are a match made in heaven, you can eat them at breakfast, lunch, or dinner. They can be used as appetizers, meals, snacks, and there are even bacon desserts which are delicious! With such versatility it’s no surprise that Kiwis love their bacon and sausages, buying over 10 million kgs of bacon and 13 million kgs of sausages per annum from our supermarkets.* Marketing Manager Brydon Hellers says: “At Hellers we are always looking at how we can bring tasty, quality, innovative products to the market. Flavour is a great way to add excitement to an existing category and we’ve taken this a step further with our new Hellers Chorizo Sausage Strips. Some may call it bacon, some may call it sausage, but we’ve now made your favourite Chorizo sausage a super-fast cook. Hellers new Chorizo Sausage Strips are full of flavour, versatile, and quick to cook. They can be served just like bacon as part of your brunch, lunch or snack, and can be used as an ingredient in your favourite quiche, pie or platter.” Hellers Chorizo Sausage Strips come in a convenient 200g pack, which you’ll find in the chiller alongside our delicious range of bacon. They will be in the supermarket from 11th October. A comprehensive launch support package will include in store sampling campaigns and social media activity. And don’t miss the new Hellers Craft NZ Free Farmed bacon range and Hellers Danish Free Range bacon in smart new packaging, also in store from 11th October. *IRI Scan data MAT to 08/08/2021

FMCG BUSINESS - SEPTEMBER 2021

PACKAGING FORUM BACKS PLASTICS PHASE-OUT New Zealand’s largest packaging industry group - Degradable plastic products (e.g. oxo-degradable) has welcomed the Government’s move to phase-out - Plastic drink stirrers difficult-to-recycle and some single-use plastics. - Plastic stemmed cotton buds (including bio-plastics) The Packaging Forum CEO Rob Langford says By mid-2023: the Forum, and its Soft Plastic Recycling Scheme - Plastic produce bags (not including pre-packaged (SPRS), had largely supported the proposal during produce) its consultation period, and were pleased to see - Plastic plates, bowls and cutlery (disposable) Government take the next step. - Plastic straws “There was a long consultation period, as there - Plastic produce labels should be, and it’s great to see Government moving By mid-2025: forward. It’s essential there are end-of-life solutions in - All other PVC food and beverage packaging place for packaging and in the case of the plastic types - All other PS food and beverage packaging (e.g. being phased out that is not the case. yoghurt packs) “Oxo-degradable plastics are a prime example as The Packaging Forum is a member-based they are neither recyclable or compostable,” Langford organisation, which operates the Glass Packaging The Packaging Forum CEO Rob Langford says. He added that it’s important to note bio plastics Forum and Soft Plastic Recycling Scheme, as well as (often referred to as ‘compostable plastic’) will also be having a number of technical advisory groups. part of the single-use plastic item phase-out. The Forum cautioned against the phase-out causing unintended Small change - big impact consequences. As industry moves to alternative materials there must also Removing plastic tags from bread bags is a small change that can have a be the development of recycling, reuse and other end-of-life solutions for big impact – and two companies have just announced such a change in these materials, as well as consideration around food safety, says Langford. their packaging. The Forum’s submission during the consultation period called for a full George Weston Foods will replace plastic bread bag tags with fully cost benefit analysis, which follows Treasury guidelines, to assess impact on recyclable cardboard ones on Ploughmans Bakery and Bürgen bread. business, food safety, shelf life and cool-chain (particularly for export items). The new tags will be used to seal all Ploughmans and Bürgen loaves “That’s where the $50 million Plastics Innovation Fund announced throughout New Zealand, seven days a week. by Government is therefore very welcome and will be vital in helping This is the first step in the company’s plastic tag elimination industry transition and overcome challenges. We are watching with programme, which will eliminate 18 million plastic tags from the waste interest to see how those funds will be allocated and excited to see what stream in the first year and ultimately remove 75 million. This will innovative solutions are developed as a result,” says Langford. represent over 26,250 kgs of plastic that will no longer litter footpaths, roads, carparks and beaches or leach into waterways from landfill. Phase-out timeline Meanwhile, Nature’s Fresh is also beginning to transition away from By late 2022: plastic tags – phasing in new recyclable cardboard bread tags one day a week - PVC meat trays from 14 August, on all Nature’s Fresh loaves from its Auckland Bakery. - PS (polystyrene) takeaway food and beverage packaging The progressive rollout will then move through its network of bakeries - EPS (expanded polystyrene) food and beverage packaging (including across New Zealand, all initially one day a week, with the intention meat trays) of moving to exclusive use of recyclable cardboard bread tags at every 28

FMCG BUSINESS - SEPTEMBER 2021

[ feature ]

“GEORGE WESTON FOODS WILL REPLACE PLASTIC BREAD BAG TAGS WITH FULLY RECYCLABLE CARDBOARD ONES” bakery and every day, within the next few months. Nature’s Fresh has the opportunity to remove up to 15 million plastic bread tags from landfill each year. The cardboard bread tags on Nature’s Fresh loaves will be fully recyclable*, and made from 100% recycled content, but don’t compromise on durability – in fact, they are considerably less prone to the dreaded ‘snapping’ that can occur with plastic bread tags. The switch from plastic to recyclable cardboard tags on Nature’s Fresh loaves comes off the back of Goodman Fielder’s recently launched corporate sustainability goals, which include other commitments like switching its fleet of 110 sales force vehicles to hybrid models by the end of 2022, reducing fuel consumption of the fleet by 41%, and in July this year moved to 100% renewable electricity at all of its Goodman Fielder operated Bakeries. But what about the plastic bags still used for packaging the bread? Nature’s Fresh is also a proud supporter of the Soft Plastics Recycling Scheme, which aims to come up

with ways to turn soft plastics into useful products, such as fence posts. Nature’s Fresh trucks are currently used to collect the soft plastics collected by the Soft Plastics Recycling Scheme from Christchurch before transporting it back to Auckland to be processed, to help solve the problem of getting soft plastics from the South Island to the processing facility in Auckland. Bernard Duignan, Goodman Fielder NZ CEO, commented: “Our products are the cornerstones of millions of Kiwi pantries, and we are committed to using that reach as a force for good. Commencing the rollout of recyclable cardboard bread tags on our Nature’s Fresh loaves is an important milestone for Goodman Fielder and is the start of our rollout across all brands which will see a total of over 100 million plastic tags annually removed from circulation.

Mark Bosomworth, General Manager, George Weston Foods (NZ) Limited

*Due to their small size, the best way to ensure the new recyclable cardboard bread tags are properly processed by our NZ recycling system is to collect them in an envelope before depositing with general paper/cardboard recycling.

Soft plastic recycling for Hawke’s Bay Hawke’s Bay residents are now able to recycle their

[ sponsored content ]

BRAMIDAN RECYCLING COMPACTORS Traditional processes require staff to manually flatten cardboard boxes service has always been quick and efficient – often in times of great and inefficiently travel back and forth to dispose them into recycling need! Simon and the team are always looking for opportunities to help cages. These inefficiencies end up costing a significant amount of time, improve our business and have now supplied multiple stores within our space and money. Co-operative with world leading technologies.” A-Ward offers a full range of exclusive Bramidan machinery that can Bramidan Balers are reliable and much higher quality than anything compact small, medium and large else on the market, our quality amounts of cardboard & plastic ensures a long lifespan. With proven waste. Retailer supply chains have track record of cost saving Bramidan found great success from using and A-Ward are recognized in over Bramidan waste recycling balers. 58 countries globally. A-Ward holds a high reputation At A-Ward the top priority is working with leading companies like the health and safety of your New World, Sistema, DHL, Bunnings, organisation, so each machine and PAK’nSAVE. is designed thinking of the end Former owner of New World operator. All Bramidan Balers Eastridge and now current owner come with a built-in monitoring of Morrinsville New World, Kym system (BRA-IN) that allows us to Samuels, continues to use A-Ward identify when a machine needs solutions in her operations. She servicing, this allows us to prevent says: “A-Ward have provided our expensive breakdowns and ensure a baling solutions, both cardboard and long lifespan. waste, since I took over the store To have a free assessment of your (Eastridge) seven years ago! This was current recycling handling process, a great decision for waste diversion please email sales@a-ward.com or Many retailers are implementing Bramidan cardboard and plastic compactors. and when required, their customer visit www.a-ward.com FMCG BUSINESS - SEPTEMBER 2021

[ feature ] soft plastic packaging for the first time at participating stores in Hastings, Napier and Waipukurau. Mayor of Hastings Sandra Hazlehurst and Mayor of Napier Kirsten Wise welcomed members of The Packaging Forum’s Soft Plastic Recycling Scheme to the region to launch the new collection service. The event was held at The Warehouse in Hastings where shoppers were invited to be the first to recycle their soft plastic bags and wrappers. The distinctive recycling bins are at The Warehouse stores in Hastings and Napier South, Countdown stores in Hastings, Napier (Munroe Street); Napier South (Carlyle) and Waipukurau as well as at PAK’nSAVE Tamatea, and New World Havelock North and Waipukurau. More locations will join the programme over the coming weeks. The Packaging Forum CEO Rob Langford says they are delighted to bring soft plastic recycling to the Hawke’s Bay. “Over 70% New Zealanders now have access to our recycling service, and we have 160 drop off points around the country. The scheme covers the entire process from collection through to processing and is 100% funded by industry. “Our members are committed to reducing the amount of plastic by designing out plastic where feasible and promoting the scheme on pack to increase recycling,” he says. The soft plastic collected in the region will be recycled at Future Post’s plant in Waiuku, South Auckland. Jerome Wenzlick, Founder of Future Post says that the partnership with the Soft Plastics Recycling Scheme benefits everyone. “Every Future Post contains 1500 bags and wrappers. So, every time Hawke’s Bay

The Packaging Forum CEO Rob Langford, Heinz Wattie’s non-executive chairman Mike Pretty, Mayor of Napier Kirsten Wise, Mayor of Hastings Sandra Hazlehurst, and Mayor of Napier Kirsten Wise, Future Post founder Jerome Wenzlick and The Warehouse Sustainability Manager Yi You at The Warehouse in Hastings.

shoppers fill one of the soft plastic collection bins, that’s another post off our production line. “As we have grown, the scheme has expanded, and it’s great to be able to recycle soft plastics from here and turn them into posts for the region’s vineyards,” he says. The Soft Plastic Recycling Scheme has over 125 members representing around 78% of post-consumer soft plastic materials consumed annually. The scheme pays for the costs of collection through to processing. The images on this page were taken prior to the Delta outbreak in New Zealand.

[ sponsored content ]

Q&A WITH CCEP’S NZ SUSTAINABILITY PROJECT MANAGER My role is to drive CCEP NZ’s commitments to climate action and to create a circular economy for packaging, working with communities to make a genuinely sustainable impact on the environment.

In July, a ban on problem plastics was announced. What work is CCEP NZ doing in this space?

Coca-Cola Europacific Partners New Zealand (CCEP NZ) recently expanded the sustainability team, appointing Jenna Pepper in the new role of Sustainability Project Manager. We interviewed Jenna to learn more about CCEP NZ’s approach to sustainability, problem plastics and the transition to a circular economy.

Sustainability is at the forefront of shopper’s minds. How important is sustainability to CCEP NZ and what is your role in this? We believe that business success and sustainability go hand in hand. Earlier this year we shared our own bold ambitions, designed to make a distinct contribution between now and 2040. 30

FMCG BUSINESS - SEPTEMBER 2021

We support the government’s vision to move away from hard-torecycle or single-use plastics and are a proud signatory of the Ministry for the Environment NZ Plastic Packaging Declaration, which requires a commitment to using 100% reusable, recyclable or compostable packaging across operations by 2025 or earlier. Our team has a focus on investigating alternative materials and optimising the plastic types in our recycling stream to ensure we have easily recyclable plastics.

The Government has a work programme to accelerate NZ’s transition towards a circular economy. What is CCEP NZ’s stance on this? The essential concept at the heart of the circular economy is where every plastic product is not only recyclable, but actually gets recycled. We actively support the Government and we’re on our own journey with the transition to using RPET in our packaging. We’re also working alongside the Government and other parties to develop a container return scheme to support this transition.

[ legal advice ]

CAN AN EMPLOYER REQUIRE EMPLOYEES TO BE VACCINATED? The rolling out of Covid-19 vaccine for the general population over the coming months in this country will no doubt result in some complex employment issues for employers. It will create unique workplace tensions if employees refuse to work alongside unvaccinated employees. The most up to date information suggests that most vaccines are 90% effective in preventing Covid-19 and its transmission. The health and safety argument for vaccination is therefore a strong one. An employer cannot require its employees to be vaccinated. Under The New Zealand Bill of Rights Act, New Zealanders have the right to refuse medical treatment. Despite this, WorkSafe New Zealand states that an employer can require a specific role to be performed by a vaccinated person, if a risk assessment shows that there is a high risk of getting, or infecting others with, Covid-19. WorkSafe has released guidance to help employers conduct this risk assessment to determine whether a specific role in the business must be performed by a vaccinated employee. This will include what alternatives can be used (e.g. distancing) to discharge the employer’s health and safety obligations. An employer must consult with its employees to assess the risk. In carrying out a risk assessment for exposure to Covid-19, an employer needs to consider; • the likelihood of employees being exposed to Covid-19 while performing the role; and • the potential consequences of that exposure on others (e.g. community spread). If there is a high likelihood that the employee performing the role may be exposed to Covid-19 and the consequences would be significant for other people, it’s likely the role needs to be carried out by a vaccinated person. There are however only a small number of types of work where this would apply in New Zealand. On this basis, some essential businesses such as food producers and supermarkets would not be able to require vaccination, even though transmission could be catastrophic. The situation is difficult where existing employees refuse a vaccine or decline to tell the employer if they are vaccinated but the workplace assessment is that vaccination is necessary. Employers are obliged to communicate in good faith with the employees, including listening to the reasons for the refusal to vaccinate and to genuinely consider whether there is any way the employee can do alternative duties.

Some customers or clients may refuse to deal with unvaccinated employees. That may provide justification for an employer redeploying an employee into a lower-risk role permanently or for a period of time, or even terminating the employment relationship if, after good faith consultation, alternative duties for the employee cannot be found. An employer is entitled to include preconditions before agreeing to employ someone. Those conditions can include the requirement for that employee to be vaccinated. However, if reasons given for refusing a vaccine are linked to a religious or ethical belief or medical condition, an employer should be careful before declining to employ a person because they refuse to be vaccinated. The Human Rights Act prevents such discrimination. All employers, whether they can require vaccination or not, should be starting to formulate a Covid-19 vaccination policy which deals directly with the issue of vaccination, and the wider workplace issues that might arise between employees. Employers should consider ways they can encourage vaccination in the workplace, such as providing paid time off to get vaccinated. In most situations, an employer will not be able to ask an employee if they are vaccinated, or why they are not vaccinated, unless their role justifiably requires vaccination. An employer is not able to disclose the vaccination status of one employee to another employee. Rules around vaccinations in the workplace are unchartered territory. Open communication, in good faith, between employer and employee is the key.

Megan Williams Director STEINDLE WILLIAMS LEGAL LIMITED swlegal.co.nz

FMCG BUSINESS - SEPTEMBER 2021

[ innovation ]

DAILY GOOD: NZ MADE NATURAL IMMUNE BOOSTER •

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Daily Good immunity shots are formulated with natural DUCT OF T HE PRO Y CG and organic ingredients M FIN AL IST to boost your immunity, supported by zinc and NZ PRODUCT OF mānuka honey, turmeric THE YEAR to decrease inflammation and ginger to aid digestion. Based on sustainable growing practices and responsible manufacturing methods, Daily Good is one of a kind – an immune booster, formulated with zinc gluconate. It follows macro-consumer trends, answering to the 60% of global consumers looking to natural food for immunity (Source: INNOVA Consumer Survey 2020). Each recyclable glass bottle includes seven daily shots that can be taken neat or enjoyed diluted, in hot or cold water. Proudly made in New Zealand from local ingredients, plus USDA-certified organic turmeric and ginger sourced from Daily Good’s partner farm in Fiji, where

the origins of the ingredients can be traced back to the very field that they were planted in. Daily Good is good for you and for the planet - it not only naturally boosts your immunity, but also provides a pathway out of poverty for hundreds of Fijian women. Gluten-free, dairy-free, organic, with no added fillers or nasties, Daily Good is produced by Red Shoots, proudly NZ owned with all products made here in Aotearoa. All their organic ingredients have Bio Grow certification, plus the ginger, turmeric and blackcurrants have Global GAP certifications. For more information visit www.dailygood.co.nz

DUCT OF TH PRO EY CG M

“BASED ON SUSTAINABLE GROWING PRACTICES AND RESPONSIBLE MANUFACTURING METHODS, DAILY GOOD IS ONE OF A KIND”

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PRODUCT OF THE YEAR

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FMCG BUSINESS PRODUCT OF THE YEAR Do you have a Hero product that stands out from the crowd? If there’s a tasty tastebud teaser, NPD rockstar, or best seller in your portfolio that deserves to be crowned ‘Product Of The Year’ - we’d love to hear from you! We’ll showcase some of the finalists in upcoming issues and reveal the FMCG Business Product of the Year later in 2021.

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To find out more on how to enter please email: trubanowski@intermedianz.co.nz 32

FMCG BUSINESS - SEPTEMBER 2021

[ James & Wells ]

ARE YOUR BRANDS PROTECTED?

FIVE ESSENTIAL STEPS FOR FMCG BUSINESSES With so many issues and demands competing for your attention, your intellectual property (IP) strategy can sometimes quietly slip towards the bottom of the pile. IP won’t always be front-of-mind for busy FMCG professionals, so it’s important to revisit and re-assess your position as often as possible.

1. Regularly review and interrogate your IP strategy, particularly if your business changes Even if things are ticking along nicely, it’s critical to regularly review your IP strategy to confirm it is still fit for purpose. This is even more important if your business is making significant changes to its plans – for example, delaying or accelerating the launch of new products or services. Information and planning are key to protect and leverage new IP rights, and to minimise risk. Going through this process can often identify inefficiency or redundancy in the strategy, which will allow you to make good choices regarding the allocation of resources and costs.

2. Assess your IP risks and plan accordingly As the business environment evolves, significant disruptions to your company’s supply chain, customer base, revenues or labour force will inevitably serve up a new set of potential IP risks to mitigate and prioritise against. If you’re in a business that is heavily dependent on a portfolio of branded consumer products, for example – you will want to weigh up those that are critical to the ongoing success of your business and ensure you continue to protect and enforce the associated IP. Similarly, if you’re innovating and inventing new products or services to capitalise on emerging market opportunities, you will want to ensure you don’t disclose your ideas prematurely. Many companies thrive in adverse conditions. If yours is one of these, strive to keep the IP implications of what you’re doing on your risk radar.

communication channel back to your legal team and, if necessary, your external IP provider.

4. Review deadlines associated with your IP Unfortunately, in a world where there are already more than enough deadlines to deal with, the successful protection and maintenance of your IP is very much a deadline-driven process. Making pressure-forced decisions in respect of an impending deadline can be costly and can mean the difference between securing the protection your business requires or losing protection and the associated competitive advantage the business already has. Whether you are in the process of securing protection for any new IP rights, it’s essential to regularly review and diarise any deadlines associated with your IP. Allow as much time as possible before a deadline to work through any issues or submission requirements with your IP provider.

Carrick Robinson Partner, 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. jamesandwells.com

5. Remain informed and ready to act Whether you have a large IP portfolio, or a few vital IP assets to protect and maintain, trusted and expert IP advice is essential. An external IP provider can help cut through the challenges of managing the complexities of the IP process. They can provide a sounding-board on the strategic and commercial implications of any changes you may need to make to your IP strategy during these times. They will also guide you on the right actions to take and when. They will also keep you current and informed of any issues that may impact your plans or portfolio, and most importantly are there to help keep your IP strategy on track.

3. Reinforce IP awareness internally Flexible and remote working arrangements have likely changed the way you and your team communicate on a day-to-day basis. Maintaining the value of and opportunity presented by your IP assets is as much about the internal processes you put in place, as the more formal external processes required to protect, enforce and leverage them. Ensure your wider internal team remains IP-aware with a regular and open FMCG BUSINESS - SEPTEMBER 2021

[ FGC ]

AN OPPORTUNITY WE MUST TAKE

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

food& grocery COUNCIL NEW ZEALAND

Anyone doubting the thoroughness with which the Commerce Commission would conduct its market study into competition issues concerning consumers, retailers and suppliers in the grocery sector would have been well and truly silenced by their draft report. At a whopping 517 pages, it’s the biggest report I can recall, even from my time as an MP. But it’s not just the size. Having read every page, I can assure you it’s also one of the most comprehensive. And there’s more to come. By the time you read this, stakeholders will have made their third round of submissions and there are two more opportunities to come: a special conference in September, and then further comments on that. It’s thoroughness that gives comfort that whatever the Commission’s final recommendations to the Government in November, they’ll be the best informed possible. So, what of the draft findings? My conclusion after reading those 517 pages is they are an accurate reflection of the market. The Commission found competition for a consumer’s main shop is dominated by Foodstuffs and Woolworths NZ, with a fringe of others unable to compete on price and range. They said there were “significant challenges” for those fringe competitors, including a lack of competitively priced wholesale supply and a lack of suitable sites for new stores. Also, the major retailers avoid strongly competing with each other on price and generally do not have lower prices. They added: • “Competition … is not working well for consumers,” and if it was more effective, retailers would face “stronger pressure to deliver the right prices, quality and range”.

The market study offers suppliers an opportunity to finally move the dial towards better and more transparent supplier relationships.

FMCG BUSINESS - SEPTEMBER 2021

• “… the core problem is the structure of the market. In competitive terms, Woolworths NZ and Foodstuffs are a duopoly, and while there is an increasingly diverse fringe of other retailers, they have a limited impact on competition.” • The best option for improving competition is to increase the number of retailers directly competing against those two. On how this lack of competition affects suppliers, the Commission found: • Many suppliers have few options but to supply the major retailers, which allows the retailers to exercise their power to push “excess risks, costs and uncertainty onto suppliers. Suppliers report agreeing to these terms because they fear that otherwise their products may not be stocked. This conduct can reduce suppliers’ ability and incentives to invest and innovate, ultimately leading to less choice, lower quality, and potentially higher priced goods for consumers.” • The retailers use their strong negotiating position to: o limit suppliers’ ability or incentive to provide competitive supply terms to other retailers o transfer costs and risks to suppliers, despite retailers being better placed to manage them, and this may reduce efficiency and increase prices o reduce transparency and certainty over supply terms. This is why the Commission concluded a grocery Code of Conduct would be “beneficial”. It said a Code could set minimum standards for supply terms between retailers and suppliers, and might include quantity and quality standards, delivery requirements, when groceries may be rejected, the maximum period for payment, and circumstances when payment may be withheld or deductions made. It could also impose limits on retrospective variations of supply terms and on unilateral variations of supply terms. Such a Code may need to be mandatory otherwise there is a risk not all retailers would sign up, which “would likely undermine the effectiveness of a Code”. All of which is precisely why the Food & Grocery Council has been pushing for one. We must guard against everything that makes the playing field uneven at present, including coercive behaviour, bullying, threats of delisting, retrospective payments or deductions without consent, unexpected “investment” in store wages accounts, payments for shelf space. The market study offers suppliers an opportunity to finally move the dial towards better and more transparent supplier relationships. It’s an opportunity we must take.

[ good business ]

TIPS FOR WORKING FROM HOME

The Covid-19 pandemic has had a big impact across the globe. Many companies are implementing measures to protect their people and business, while trying to ensure the continuity of services. This means that many of us will be working from home for a while, to limit the spread of the virus. Transitioning to work-from-home is easier said than done. How can parents balance work and looking after out-of-school children? How can managers ensure they’re supporting both productivity and their employees’ health and wellness? With more people around the world working remotely now, we thought we’d share some tips on how to work from home. There are four essential things that you’ll need to get started: • A device to work on, such as a company laptop or personally owned device • A network connection - to access the data and systems required • A security solution, such as antivirus software. • A bit of know-how - on how to connect, where to find applications, how to back up your work to an external drive, USB stick, or cloud folder.

Stay focused and in touch • Set up a dedicated office space in a quiet part of your home with all the tech and resources required to work efficiently. • Try to separate work life from home life if you can. Establish an effective work routine and regular work hours, then try to stick to that. • Discuss some ground rules to avoid distractions, if your spouse/ partner/roommate is at home too. • Remote work doesn’t need to isolate people. Schedule regular phone calls and keep in touch with your team and clients via Skype, zoom or similar.

“SCHEDULE REGULAR PHONE CALLS AND KEEP IN TOUCH WITH YOUR TEAM AND CLIENTS” • Talk to your manager at regular intervals about deadlines and deliverables. • Hold meetings and training by virtual sessions using Google meetings or other video conferencing software as required. • Office phone numbers can be re-directed to mobile numbers Working from home comes with its own challenges, not least the additional costs that it imposes on employees. So, is it possible to claim a tax deduction for any of these extra costs? Happily, the answer is yes.

What tax deductions can you claim? If you work from home, talk to your accountant to find out how to claim work-related proportions of household costs such as: • Power bills; • Costs of cleaning your home working area; • Depreciation of home office furniture and fittings; • Depreciation of office equipment and computers; • Costs of repairing home office equipment, furniture and furnishings; • Small capital items such as furniture and computer equipment costing less than $300 can be written off in full immediately (they don’t need to be depreciated); • Computer consumables (like printer ink) and stationery; and • Phone (mobile and/or landline) and internet expenses. FMCG BUSINESS - SEPTEMBER 2021

[ export ]

HELP FOR FOOD AND BEVERAGE EXPORTERS

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

Food can be one of the hardest things to export if it is fresh, due to sanitary and phytosanitary requirements of the country you are exporting to. Every country wants to protect its local natural environment from pests and diseases, including New Zealand, hence there is a lot of caution around biosecurity and market access. If your product is processed and heat treated or dried, it is considered lower risk and there are less hurdles. The Ministry of Primary Industry has a lot of good information on their website for food and beverage exporters and they also have a regulatory advice service, with a team of people that can help. For more information email exporterhelp@mpi.govt.nz Any business contemplating export should definitely do their homework on the MPI website and take advantage of the Export Regulatory Advice Service (ERAS). In addition, New Zealand Trade and Enterprise (NZTE) is the government agency that supports exporters, both in New Zealand and in overseas

markets. They have had a post Covid-19 budget boost to increase the support they can give to exporters, and they are currently reorganising themselves to take a more sector focussed approach, including a team that will be focussing on food and beverage. Check out their website https://www.nzte.govt.nz/ , they have a lot of digital resources for exporters and an exporting 101 course called Export Essentials, which is well worth doing if you want to export. ExportNZ has seven regional offices running export support services, in Auckland, Tauranga, Hamilton, Napier, Palmerston North, Wellington, Christchurch and hopefully soon Dunedin. The Executive Officers in those regions run workshops and seminars, networking events, awards events, and in some regions there is also a mentoring service called Export Excelerate – which matches up emerging exporters with experienced exporters and subject matter experts to help them on their journey. The ethos at ExportNZ is all about exporters helping exporters. It is a membership organisation and you belong to ExportNZ if you are a member of the EMA, Business Central, Canterbury Employers Chamber of Commerce, or Otago Southland Employers Association. In addition to the networking and capability building done in our regional offices, in Wellington we do the policy and advocacy to support exporters. When it comes to F&B exporters, we have an e-mail group that we keep abreast of any regulatory changes going on, and we also take up any issues they have with the appropriate Government agency, mostly MPI. We have a processed food export ‘champion’ at MPI in the senior leadership team who we can elevate things to, if we need to get some action. We have exporters’ backs and can collectivise them on common issues to get results. Exporting can be fun and challenging and rewarding and there is plenty of support to help you on your export journey.

“EXPORTNZ HAS SEVEN REGIONAL OFFICES RUNNING EXPORT SUPPORT SERVICES” 36

FMCG BUSINESS - SEPTEMBER 2021

[ marketing ]

CONFESSIONS OF A CARD AGNOSTIC NOTES FROM THE RETAIL FRONT LINE Somewhat flippantly I said: “I have a Onecard, I use it, but I don’t know why. What’s the point, really?” To which the cashier replied: “Oh lots of people use them. I do. I love getting a discount on everything. Why wouldn’t you?” This got me thinking about cards and what that bulge in my wallet means. Living half-way between the New World and Countdown, I shop both about equally. I have a Onecard and a Clubcard that I use because they remind me to. But that’s it for me. I don’t check any balances. I don’t value them. And they have no apparent influence on my loyalty or behaviour other than giving over my data with every swipe. As an agnostic I believe in the idea of supermarket loyalty cards, but I don’t practice. But it seems like a lot of people do. According to Inside Retail 94% of all grown-ups in New Zealand are enrolled with a loyalty programme and an average of 4.8 schemes per person. Consumer reports that 42% are points chasers who claim that loyalty schemes are very important to them. On the other hand, there is a growing concern about our digital privacy and the potential risks of data security breaches. As someone once said: “If the product is free, you are the product.” Out of curiosity I logged on to see what my Onecard and Clubcard experience might be online. Both dished me a big serving of specials, recipe inspiration and things to win. Onecard certainly knew it was me. They referenced my usual store and gave me a bunch of deals on the things I would have bought anyway. In contrast, Clubcard had me shopping somewhere across town and threw a fairly irrelevant range of specials at me. Loyalty programmes are a powerful way for supermarket operators to measure customer profiles and behaviour. They can sway preference and lure customers across the street off the back of aggressive supplier-funded promotional calendars. They can be a competitive point of difference when leveraged correctly. But what’s in it for the customer? The obvious answer might be discounts and value. But is it really? According to Consumer it costs a lot to get a little. $2,000 spent at Countdown will earn you a $15 voucher and $2,125 will earn you $15 in New World dollars. Point Hack claims that earning points from day-to-day spending is very low (a 0.0069% rebate with one programme). They suggest that the best way to improve your gain is to opt in for AA Smartfuel vouchers with Onecard and Air New Zealand Airpoints for Clubcard.

Digging deeper, it seems that loyalty programmes can satisfy in more psychologically subtle ways, according to Saasquatch: • A wee warm fuzzy – Rewards provide a small win that triggers a dose of happiness in the form of dopamine. • Reinforcement of habits – An adopted ritual that becomes a natural part of the shopping experience. • Continual investment – The more they are used the more valuable they become emotionally and the ‘cost’ of not using them increases. • Goal anticipation – People look forward to the reward of points or discounts as a prize for their shopping effort. • Endowment progress effect – There is an inherent value placed on points that are building to a reward (think coffee card stamps). • Scarcity & urgency – Loyalty programmes can be managed like a currency to drive behaviour. • Loss aversion – Some hate to feel like they are missing out without points rewards. • Social status – Tiered programmes can create a social value in accumulation (ever noticed how some people display their Koru Club tags? Only Gold/Gold Elite seem to do this). So where does this leave me with my supermarket loyalty cards? I understand how they work, and rationally why I should use them. But they do feel like a weekly Lotto ticket without any of the decent prizes to get excited about.

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

Loyalty programmes are a powerful way for supermarket operators to measure customer profiles and behaviour.

FMCG BUSINESS - SEPTEMBER 2021

MARKETING SUMMIT Ellerslie Racecourse, Auckland

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NEW ZEALAND FOOD AWARDS 2021 FINALISTS REVEALED

The Product Lifetime Achievement Award finalists are: Wattie’s ‘Tomato Sauce’, Whittaker’s ‘Peanut Slab’ and Vogel’s ‘Original Mixed Grain Bread’.

The New Zealand Food Awards are a celebration of Aotearoa’s finest local food and beverage producers, showcasing the best of New Zealand’s food and beverage innovation, excellence and sustainability. Plant-based mince, seaweed salt, and Sauvignon Blanc Gin are just some of the new Kiwi products announced as finalists in the 2021 New Zealand Food Awards powered by Massey University. There were more than 170 entries this year, and from those a team of judges whittled down the best of the best, ending up with 66 finalists from 45 companies from across the country. Head Judge Kay McMath says judges focused on finding innovative, high quality and sustainable products. “The team of judges are happy to present an exciting array of finalists for this year’s New Zealand Food Awards. All of these finalists had focused on meeting consumer demands, be that for nutrition, convenience, variety or excellence using technology, creativity and sound processes. Congratulations to all these finalists on a superb achievement!” Finalists include several winners from previous years, but also an impressive line-up of new brands and products. Renowned chef of Homeland NZ, Peter Gordon joined the judging panel this year. He said: “As a first-time judge, I was excited to be a part of a broad panel of expertise. The judging is about so much more than one person’s point of view and I learned a lot from the experience. I was really encouraged to see so much innovation in the health and wellbeing space - products that cater for different dietary requirements. Consumers 40

FMCG BUSINESS - SEPTEMBER 2021

can be excited to see a broad spectrum of finalists, there’s some really exciting surprises in there.”

Lifetime Achievement Award The New Zealand Food Awards also announced the finalists for the Product Lifetime Achievement Award - sponsored by AsureQuality. This award was introduced in 2019 and celebrates Kiwi products that have withstood the test of time. The 2021 finalists are: Wattie’s ‘Tomato Sauce’, Whittaker’s ‘Peanut Slab’ and Vogel’s ‘Original Mixed Grain Bread’. The New Zealand Food Awards have celebrated New Zealand’s food and beverage manufacturers, focusing on innovation, sustainability and excellence, since 1987. Powered by Massey University, the awards are open to small and large food and beverage manufacturers, primary food producers, food service providers and ingredient supply companies. Finalist and winning products earn the New Zealand Food Award’s quality mark to highlight their technical capability, consumer acceptability, regulatory compliance and food quality and safety to shoppers and industry. The awards programme is made possible with the support of the NZ Food Awards Partner Network: Massey University, Palmerston North City Council, New Zealand Food Safety, Countdown, Cuisine, AsureQuality, KiwiSo, New Zealand Trade and Enterprise, BNZ, Villa Maria, FMCG Business, FoodHQ, The Food Innovation Network, XPO and The New Zealand Institute of Food Science & Technology Ltd.

[ events ] Novel Award – Sponsored by KiwiSo Dancing Sands – Sauvignon Blanc Gin Grater Goods – Plant Pastrami NewFish – Blackfoot Pāua Saucisson 1kg Spring Sheep Milk Co. – Gentle Sheep Toddler Milk Drink Stage 3 Upcycled Grain Project – Upcycled Grain Crackers - Parmesan Vince – Vegetable Mince - Mexican Style

Plant-based ‘Magic Mince’ is one of the finalists in the 2021 New Zealand Food Awards powered by Massey University.

Product Awards Finalists Artisan Award – Sponsored by Cuisine Bellefield Butter Co. – Brown ‘Butter’ Ghee Beard Brothers – Pork and Cress Beard Brothers – Pork and Palusami Beard Brothers – Pork and Puha Chatham Island Food Co. – Chatham Blue™ Manaaki – Piripiri Plum Chutney Moreish Organic Butchery – Pure Organic Beef Burger Patties NewFish – Blackfoot Pāua Saucisson 1kg Pacific Harvest – Power of Three Seaweed Flakes The Gardener – Beetroot & Date Chutney The Hemp Butter Co – Maple Almond Hemp Butter The Wild Fermentary – Smoky Kāpeti Well & Truly Artisan Pantry – Make at Home Vitality Bars Zaroa NZ – Pohutukawa Smoked Venison Savernaccio Below Zero Award – Sponsored by FoodHQ Juicies – Watermelon Juicies Kim’s Kitchen – Gluten Free Steamed Buns: BBQ Pork Let’s Eat – Plant-Based Golden Nuggets Little ‘Lato – Roasted Hazelnut (Dairy-Free) Marlie Bites – Marlie Bites - Mixed Flavours Beverage Award – Sponsored by Food Innovation Network Borage and Bee Meadery – Semi-Sweet Session Mead Chia Sisters – Immunity Hot Tonic Dancing Sands – Sauvignon Blanc Gin Froth Technologies – Live Liquid Yeast, FT02 - Vape (Hazy Ale) Greenroots Juicery – Sun Rising Soochi – Glow Berry Skin and Gut Studio Red Wellness – Organic Infusion - Peppermint & Kawakawa Chilled Award – Sponsored by Massey University Food Nation – Magic Mince - Mexican, Corn & Red Pepper Food Nation – Magic Mince - Mushroom & Hemp Kc Kombucha – Kc3 Springtime Kombucha The Wild Fermentary – Smoky Kāpeti Zaroa NZ – Pohutukawa Smoked Venison Savernaccio Health and Wellbeing Award – Sponsored by Countdown Food Nation – Magic Mince - Mexican, Corn & Red Pepper Food Nation – Magic Mince - Mushroom & Hemp Kim’s Kitchen – Gluten Free Steamed Buns: BBQ Pork Wholesome You – Multiseed Crackers

Pantry Award – Sponsored by Countdown Fix & Fogg – Protein Peanut Butter FreeFOD – Low FODMAP Garlic Replacer OSM® – The Original Craft™ Bar Pacific Harvest – Seaweed Salt Pic’s Peanut Butter – Peanut & Chocolate Butter Vince – Vegetable Mince - Mexican Style Primary Sector Award – Sponsored by New Zealand Food Safety Chatham Island Food Co. – Chatham Blue™ Hemp Connect – Hemp Hearts NewFish – Blackfoot Pāua Saucisson 1kg Product Lifetime Achievement Award – Sponsored by AsureQuality Wattie’s – Tomato Sauce Whittaker’s – Peanut Slab Vogel’s – Original Mixed Grain Bread

Business Awards Business Innovation Award – Sponsored by BNZ Barefoot Eatery Froth Technologies Little ‘Lato Pacific Harvest Spring Sheep Milk Co. Food Safety Culture Award – Sponsored by New Zealand Food Safety Beard Brothers Chatham Islands Food Co. Little ‘Lato

Community Awards Food Hero Award – Sponsored by Palmerston North City Council Kōrure New Zealand Food Network Oakley’s Premium Fresh Vegetables Ltd Perfectly Imperfect The Sustainable Food Co.

Gala Awards Dinner 14 October - Gala dinner and winners announced, Central Energy Trust Arena, Palmerston North, 7pm-11pm Tickets on sale now at foodawards.co.nz Single ticket: $200 + GST Table of ten: $1950 + GST For more information, visit www.foodawards.co.nz Facebook: @NewZealandFoodAwards Twitter: @NZFoodAwards Instagram: @NewZealandFoodAwards

FMCG BUSINESS - SEPTEMBER 2021

[ events ]

NEW DATES FOR NZ ICE CREAM AWARDS The NZ Ice Cream Manufacturers Association (NZICMA) has moved the dates for the 2021 New Zealand Ice Cream Awards, shifting judging to the beginning of November. Making the announcement in August, NZICMA President Karl Tiefenbacher said while no-one can read the future and know exactly when the Covid lockdown will end, the Association thought it best to make an early decision to secure new dates. Therefore, judging will be held at the Foodbowl in Mangere on Saturday 6 and Sunday 7 November 2021. Medal winners will be announced on Monday 22 November and the Association hopes to hold its Gala Awards dinner at Mantell’s on Tamaki Drive on Wednesday 1 December. Pushing the dates out means ice cream, gelato, sorbet and frozen yoghurt makers have until Friday 15 October 2021 to enter online at www.nzicecreamawards.co.nz The Association hopes that by pushing out the dates they will be able to celebrate 25 years of promoting local ice cream, gelato, sorbet, dairy-free and low-fat confectionery frozen products through the NZ Ice Cream Awards. The Awards, run by the NZ Ice Cream Manufacturers Association (NZICMA), have been held since 1997. The New Zealand Ice Cream Awards are the country’s only national ice cream, gelato, sorbet, dairy-free and low-fat frozen confectionery products competition, benchmarking Aotearoa’s best, celebrating the local industry and introducing consumers to delicious new products. Aside from the change of date, all other details for the NZ Ice Cream Awards remain the same. For the second year Chief Judge Jackie Matthews will preside over a panel of up to 30 judges. ‘Best of Chocolate’ is the 2021 special category. An update to rules for 2021 will allow all products judged to be eligible to win the Supreme Champion Awards. That means there’s a possibility that, for the first time in the awards’ 25-year history, frozen confectionery products in addition to ice cream are eligible to win the top accolade.

To acknowledge and encourage industry creativity an ‘Innovation’ category will be awarded for the first time. Jackie says this category will consider many elements over and above the flavour combination. For example, judges may review packaging, production techniques and ingredient sourcing.

NZ Ice Cream Awards 2021 Trophies

“AN ‘INNOVATION’ CATEGORY WILL BE AWARDED FOR THE FIRST TIME.”

FMCG BUSINESS - SEPTEMBER 2021

Supreme Champions • Americold Supreme Champion • Formula Foods Supreme Boutique Champion Category Champions • Standard Vanilla Ice Cream Champion • IMCD/Givaudan Premium Vanilla Ice Cream Champion • PACT Packaging Standard Ice Cream Champion • Chelsea Sugar Premium Ice Cream Champion • GS Hall & Company Ltd Best of Chocolate • Sensient Technologies Gelato Champion • Sorbet Champion • Export Ice Cream Champion • Low Fat/Frozen Yoghurt Champion • Hawkins Watt Dairy-Free Champion • Open Creative Ice Cream, Gelato or Sorbet Champion • New to Market Champion

• I nnovation Champion • Pacific Flavours & Ingredients Kids’ Choice Champion

Nz Ice Cream Awards Key Dates More than 300 ice creams, gelatos, sorbets, dairy-free and low-fat frozen products are expected to be entered in this year’s awards. The timeline for the New Zealand Ice Cream Awards 2021 is: • Friday 15 October - Entries close • Wednesday 3 and Thursday 4 November - Judging samples to arrive at The Foodbowl, Auckland for judging • Saturday 6 and Sunday 7 November - Judging at The Foodbowl • Monday 22 November - Gold and Silver Medal results announced Wednesday 1 December, Conference at Remuera Golf Club and Gala Awards Dinner at Mantell’s Tamaki Drive, Auckland

OUT & ABOUT

Delicious cheese samples

at the Food Show in Auc

kland, courtesy of the Cas

tello team. Coca Cola EuroPacific Partners celebrated over 200 people with more than 3,000 years of collective service at its Long Service Awards. (L to R) Coca-Cola Europacific Partners NZ MD, Chris Litchfield and Graham Anderso n.

Kellogg provided a range of breakfast cereal and snack options to be enjoyed during the Paralympic Games in Tokyo.

The Ta

ced their sti team introdu

ge EAT snack ran

at the Food Sh

ow in Aucklan

The images on this page were taken prior to the Delta Outbreak in New Zealand.

SNAP AND

WIN!

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 Lotus Biscoff Prize Pack worth $100! The world-famous Lotus Biscoff biscuits have finally arrived in New Zealand. Lotus Biscoff proves that you don’t have to be big to stand out, and with every bite, you discover the nice surprise of its unique taste and delicious crunchiness. Lotus Biscoff biscuits are vegan friendly and contain no artificial colours, no artificial flavours and no preservatives. Coffee + Lotus Biscoff = the perfect match.

Just email your high res image with a caption to trubanowski@intermedianz.co.nz FMCG BUSINESS - SEPTEMBER 2021

[ convenience & impulse retailing ]

WE’RE IN THIS TOGETHER Deb Jackson, Managing Editor, C&I NZ

Welcome to Convenience & Impulse Retailing New Zealand (C&I NZ), created proudly in partnership with the New Zealand Association of Convenience Stores (NZACS). As we go to press, the strict level four lockdown across New Zealand has been extended as the country’s Delta outbreak continues to climb. Fortunately, supermarkets, dairies, and petrol stations

finalists for the 2021 Peter Jowett scholarship. We share some great insights from Andrew Arnold, Country Manager at Shopper Intelligence New Zealand, who breaks down the best ways to plan promotional activity to engage shoppers. And we’ve got some big news out of Australia, with leading fuel supplier Ampol launching a $2 billion bid to acquire 100% of Z Energy. A successful

can continue trading while following health and safety guidelines. But what is more fortunate is that the workers who are keeping these businesses operating have been classified as essential and are now eligible for priority vaccinations. It’s a tough time that we’re going through, but together we can get through this if we follow the lockdown measures, look out for each other, and vaccinate, vaccinate, vaccinate. In this issue we’ve got some exciting news from NZACS, with two new faces joining the management committee. We also get to know the four impressive young future leaders who have been named as

transaction would create a Trans-Tasman leader in fuel with significant regional scale and an integrated supply chain. We would like to thank Louise Mitchell from NPD, Joanna Graham from bp, the four Peter Jowett finalists, including Andrew Olsen from Frucor Suntory, and Chad Beets, Kailee Weir, and Sergei Morgun from BAT NZ, and Andrew Arnold from Shopper Intelligence for their contributions to this edition of C&I NZ. Stay safe, Deb Jackson

“IT’S A TOUGH TIME THAT WE’RE GOING THROUGH, BUT TOGETHER WE CAN GET THROUGH THIS...”

PETROL AND CONVENIENCE NEWS PROUDLY BROUGHT TO YOU BY 44

FMCG BUSINESS - SEPTEMBER 2021

[ convenience & impulse retailing ]

NZACS WELCOMES NEW COMMITTEE MEMBERS Louise Mitchell and Joanna Graham will bring increased diversity to the committee and a wealth of industry knowledge. The New Zealand Association of Convenience Stores (NZACS) has appointed two new members to its management committee, including Louise Mitchell from NPD and Joanna Graham from bp. Both Mitchell and Graham have joined as retail representatives, and each brings with them long and varied experience across FMCG, and the convenience channel. Dave Hooker, Executive Director, NZACS, welcomed Mitchell and Graham and said that their industry knowledge and experience would be an asset to the association. “The management committee are very pleased with the inclusion of Joanna Graham from bp and Louise Mitchell from NPD. Both Jo and Lou will add more diversity to the group and provide an increased level of focus from a retailer perspective. We are excited to work with them and make use of their varied backgrounds and experience.”

Meet… Louise Mitchell, Senior Category Manager, NPD Mitchell has been managing multiple categories since the establishment of NPD in 2017 where she moved from Foodstuff’s South Island. She has extensive experience in foodservice and has been pivotal in developing the Refresh Food offering in the new-toindustry NPD sites in the South Island.

C&I NZ: What do you hope to achieve in joining the NZACS management committee? Mitchell: I hope to gain even more industry exposure for our brand and bring some of my foodservice experience and knowledge to the committee. I am also looking forward to working closer with some of our key suppliers. I feel honoured to represent NPD on the committee. I am looking forward to being a part of the team!

Meet… Joanna Graham, Senior Manager, Convenience Trading ANZ, bp Graham has had a varied international career, including stints in the UK and China. She has held technical and commercial roles at Fisher & Paykel, Diageo and currently at bp, where she heads up convenience trading for Australia and New Zealand. Joanna Graham

Louise Mitchell

C&I NZ: What do you enjoy most about the convenience industry? Mitchell: I love how dynamic it is! We are lucky at NPD to be able to continually keep our offer fresh and exciting for our customers. We are currently working on a range of signature products for our Refresh Café sites that I am excited to bring to market. C&I NZ: What are the biggest challenges facing the NZ convenience industry now? Mitchell: The changes to vaping legislations will be one to watch closely. Fruit and dessert flavours made up more than 50% of our sales so it will be interesting to see if customers transition over to the tobacco and menthol flavours, which they can continue to purchase from our sites or if they will move to online purchasing. A lot of suppliers are also experiencing stock supply issues due to freight demands at our ports.

C&I NZ: What do you enjoy most about the convenience industry? Graham: I love the nature of convenience! It’s extremely satisfying to be talking about something in the office one week and see it activated instore the next. And the small box format means that every inch of space must work hard. We really must know and understand our customer and make good decisions about what we range. C&I NZ: What are the biggest challenges facing the NZ convenience industry now? Graham: It’s a period of great uncertainty for the industry and the consumer. We’re in the middle of a global pandemic… and our customers are increasingly digitally connected. It’s more important than ever to stay close to our consumer and ensure we are pivoting quickly to meet their changing needs and expectations. C&I NZ: What do you hope to achieve in joining the NZACS management committee? Graham: I’m based in Melbourne, so more than anything, I see joining the committee as a great way to foster strong connections in New Zealand. As I write this, Australia and New Zealand are gripped by lockdowns. I look forward to being able to travel to meet the committee in person in New Zealand at some stage soon! FMCG BUSINESS - SEPTEMBER 2021

[ convenience & impulse retailing ]

2021 PETER JOWETT SCHOLARSHIP FINALISTS REVEALED Four exceptional young future leaders will compete for this year’s two Peter Jowett scholarships.

Andrew Olsen, Key Account Manager P&C, Frucor Suntory

Chad Beets, Specialist Trade Marketing Rep, BAT NZ

The New Zealand Association of Convenience Stores (NZACS) has named the four 2021 Peter Jowett finalists who will compete for this year’s two scholarship prizes. The Peter Jowett scholarship is a unique opportunity to celebrate and challenge future industry leaders. Candidates must be under the age of 36 and are given a platform to present their ideas on a specific topic in front of leaders of the New Zealand convenience industry. The four 2021 Peter Jowett finalists will present on the scholarship topic: ‘In light of COVID-19 and the changes in shopper behaviour and dynamics, what opportunities has this pandemic presented for convenience retailers to change the way they retail, and look for areas to deliver sales growth and foot traffic for their businesses?’ The winner and runner-up will both win a $1,000 personal travel prize and a $3,000 professional development grant to be used in conjunction with their respective companies. Dave Hooker, Executive Director, NZACS, highlighted the significant effort that goes into entering the Peter Jowett

Kailee Weir, Trade Marketing Rep, BAT NZ

scholarship, and commended the four finalists for their achievement. “We would like to congratulate our four Peter Jowett scholarship finalists. To get to this stage the finalists have already spent significant time on research and documentation to prepare themselves for the big night. The effort required should not be underestimated and we look forward to watching and listening to their final presentations.”

“I BELIEVE THIS YEAR’S TOPIC IN PARTICULAR IS SO INTERESTING AS WE HAVE SEEN COVID-19 PLAY A LARGE ROLE IN THE SHAPE OF THE CURRENT RETAIL SECTOR AND WHAT IT WILL LOOK LIKE OVER THE NEXT FEW YEARS.” – ANDREW OLSEN, KEY ACCOUNT MANAGER P&C, FRUCOR SUNTORY

FMCG BUSINESS - SEPTEMBER 2021

Sergei Morgun, Trade Marketing Representative, BAT NZ

Meet the finalists… Andrew Olsen, Key Account Manager P&C, Frucor Suntory Andrew Olsen is a Key Account Manager – Petrol and Convenience at Frucor Suntory, where he has worked for the past five years. Speaking exclusively to C&I NZ, he describes being named as a finalist of the 2021 Peter Jowett scholarship as “a real honour” and the “highlight” of his career. “To have the opportunity to present in front of so many of our industry leaders is something not too many people have the chance to do,” he said. “I believe this year’s topic in particular is so interesting as we have seen COVID-19 play a large role in the shape of the current retail sector and what it will look like over the next few

[ convenience & impulse retailing ] years. Not only creating new trends but significantly accelerating trends we were already seeing take shape before the pandemic. “Personally, this opportunity will be a highlight of my short five year career, believing that the various skills and roles I have been lucky enough to learn during this journey will shape a well-rounded argument come time to present.”

“THE FUTURE OF THE CONVENIENCE SECTOR IS RELIANT ON EMBRACING THESE SHIFTS, WHILST ENSURING IT IS USER FRIENDLY AND EFFICIENT.” – KAILEE WEIR, TRADE MARKETING REP, BRITISH AMERICAN TOBACCO NEW ZEALAND

Chad Beets, Specialist Trade Marketing Rep, British American Tobacco New Zealand Chad Beets started with British American Tobacco New Zealand (BAT NZ) as a Trade Marketing Representative and has since been promoted to Specialist Trade Marketing Representative. He says he really enjoys meeting and having commercial discussions with convenience retailers daily. “This role has been pivotal to my growth in the company, allowing me to gain invaluable knowledge of the convenience retail sector and its challenges. I have recently been promoted to Specialist Trade Marketing Representative with a focus on projects, reporting and training. This role excites me and is full of opportunities, for example, to develop initiatives for BAT’s National Field Team and provide training to our team on the road.” Beets told C&I NZ that it feels “amazing” to be a 2021 Peter Jowett scholarship finalist. “While it has been a long (but full of learning) process to get to this stage, I am excited to present on the night,” he said. “I believe that the Peter Jowett scholarship programme is so important to the convenience sector as it creates a platform for creativity, allowing participants to present ideas from their own observations and personal experiences within the convenience sector.” Speaking of the evolution of the convenience landscape, Beets told C&I NZ: “I believe that technology will become further ingrained in the convenience landscape with all channels looking at how they can make transactions simpler and faster for the consumer. I look for advancements in technology to influence the purchasing patterns of future and current consumers. “Traditionally high volume and high value categories are in decline requiring retailers to stay vigilant on upcoming trends with a smaller window for error.” Kailee Weir, Trade Marketing Rep, British American Tobacco New Zealand Kailee Weir is a 29-year-old who has recently joined British American Tobacco New Zealand (BAT NZ) as a Trade Marketing Representative. Prior to this she was working as a territory sales manager at a nationally recognised boutique craft beer company. Speaking exclusively to C&I NZ, Weir said that she loves working with people and being at the coalface. She also relishes a challenge and says that the Peter Jowett Scholarship has been an “incredibly exciting opportunity so far”. “Peter Jowett influences lateral thinking around possible solutions to issues faced by the convenience sector,” she says. “And it encourages up and coming leaders to stretch their approach when developing innovative solutions.

“We are currently in a sociocultural shift towards embracing technology and streamlining the customer user experience. The future of the convenience sector is reliant on embracing these shifts, whilst ensuring it is user friendly and efficient. “I am proud to represent BAT in addressing current challenges surrounding the convenience sector and offer solutions as to how we can progress under the current environmental and socioeconomic changes.”

Sergei Morgun, Trade Marketing Rep, British American Tobacco New Zealand Sergei Morgun has an extensive history in the convenience channel dating back to 2003. He began working at bp as a barista and in customer service at Café Zip before the Wild Bean brand was introduced in New Zealand. He ultimately worked his way up to become a bp retail store manager in 2006. In 2013 he began working at British American Tobacco New Zealand (BAT NZ). He has held various project roles and is currently out in the trade as a Trade Marketing Rep. In speaking with C&I NZ, Morgun explains how it feels to be recognised as a finalist in the running for the Peter Jowett scholarship. “It has been a great honour and privilege to be named a finalist. It is a great opportunity to present my idea in front of the convenience sector's key stakeholders. A great amount of time was spent on preparation and research, and it pays off dividends in the end, which is reassuring that the idea is financially viable,” he said. “I believe the Peter Jowett scholarship brings in fresh ideas and outside the box thinking to the convenience sector. Some of the ideas presented previously have already been implemented by the convenience sector. This reinforces that some Peter Jowett ideas make financial sense and offers an opportunity to the convenience sector to grow sales and increase foot traffic to their stores.” We asked Morgun how he sees the convenience landscape in New Zealand evolving into 2021 and beyond, and he highlighted the changing nature of retail. “As we move away from fossil fuel internal combustion engines and onto electric vehicles there will be a greater demand for electric vehicle (EV) fast chargers available at service stations. As charging times are a lot longer versus filling your vehicle with fuel (20 minutes versus two minutes) consumers will have to spend more time in-store as they wait. This provides a great opportunity to capture a store sale and an increase in basket spend while they wait for their vehicle battery to recharge.” He also highlights a move away from cash payments and further mainstream adoption of smart payments technology such as AliPay, WeChatPay, Apple Pay, Google Pay etc. And when it comes to the challenges facing the sector, Morgun speaks of the economic burden being felt by businesses across the country. “Economic costs of doing business continues to put pressure on businesses that ultimately may be passed onto consumers. For example, higher minimum wages, fuel prices and increase in sick leave days are all additional costs that recently kicked in, in tough economic conditions.” FMCG BUSINESS - SEPTEMBER 2021

PROMOTIONAL PLANNING

UNPACKED Andrew Arnold, Country Manager at Shopper Intelligence New Zealand, breaks down the best way to plan promotional activity to engage shoppers.

Many years ago, I did a stint as a Convenience Key Account Manager. I look back on that role fondly from the benefit of hindsight, as it was a great channel to work in while at the same time posing a good challenge to understand and grow my category. But there was a challenge that proved a difficult nut to crack – as my brand was the clear number two in our category, I didn’t get the lion’s share of the promo slots, so how could I make the best use of what I was able to secure? Where was the best place to talk to my shoppers? Again, with the benefit of hindsight I wish that I'd had access to shopper data back then, because it would have made my life a whole lot easier.

Go hard or go easy?

Andrew Arnold, Country Manager, Shopper Intelligence

“LISTEN TO YOUR SHOPPERS, THEY WILL TELL YOU WHAT YOU NEED TO DO.”

Let’s assume that we have a category with a certain number of promotional slots in a year. What is the best way to use them? Should we go deep? Should we go multibuy? Or should we focus on the value perception angle? The answer is rooted in listening to your shoppers, as they will tell you what you should do. It’s important to understand off the bat how important offers are to your shopper, but you also need to know if they have high price knowledge. This matters because if you have a shopper that places a high importance on offers but doesn’t really know what price they pay from week to week, then the fact that a promotion is on will be enough to satisfy them. Going hard or going deep is only needed if the shoppers have high price knowledge. Energy Drinks and Chocolate Bars are solid examples of categories where there is high importance of offers and high price knowledge – you must demonstrate the saving here. But in Sports Drinks 48

and Chips, price knowledge is relatively weak so even though shoppers want to see deals the depth doesn’t need to be massive. You can achieve the desired effect with a shallower price play. And then you have the categories where offers aren’t that important to begin with – for example Hot Food or Single Serve Ice Cream. Promote if you must but do so in the knowledge that the price is less important to the shopper than other factors. Emphasise the occasionality of the category, or the need that it is meeting rather than the fact that the shopper will save some money making the purchase. That will register more effectively with the shopper.

FMCG BUSINESS - SEPTEMBER 2021

The mechanic

To multibuy or not to multibuy… let’s face it, over the years the convenience channel has been really good at pushing multibuys, and in a good number of cases they have worked pretty well. However, there is a point where using a multibuy is not going to be as effective as a single price point. The flipside is that there may also be opportunities to use multibuys where they haven’t been utilised before. Where are multibuys going to be most effective? The shopper data indicates that multibuys will work best in categories where shoppers are in the mindset of being open to buying extra if presented with a suitably enticing promotional offer. Shoppers in Liquid Breakfast, Milk and Iced Tea fall very strongly into this mindset. But be careful about going to the well too often in categories like Mints and Gum, Soft Drink and Water – shoppers in these categories are less likely to be in that mindset where a multibuy is going to be attractive. For these shoppers a single price point

[ convenience & impulse retailing ] will fit the bill. Consider too categories which may not have necessarily been used in the past for this mechanic – I must confess I haven’t seen many multibuy promotions in the past on Chocolate Bags, but this category ranks third amongst all categories on this measure. It also pays to think about why the shoppers have come to the store in the first place as this also plays a role in their multibuy mindset. Shoppers on a specific fuel mission are less likely to favourably consider a multibuy, while shoppers on a non-fuel/top up shopping mission are significantly more likely to be in this mindset. Combine a category open to multibuys with the top up mission and you will have shoppers searching out a multibuy opportunity.

Where do you talk about it?

enter the store. This could be the vergeboard, a window poster, a pump topper – anything that isn’t inside the store itself. Shoppers in Energy Drinks, Milk, Natural Health Drinks (like Kombucha) and Packaged Bread are much more likely to be in this kind of headspace as they are highly planned and some kind of promo trigger is a significant factor in that planning. But in-store promo cues are not likely to be as effective for these categories – visibility is still very important in terms of being able to easily find and see the category (especially in the case of Energy Drinks and Milk), but these categories aren’t very impulsive. To make sure the in-store promo activation is geared for success, it is impulsive categories that need to shine once the shopper goes through the door. Mints and Gum, Chips and even Car Accessories (light bulbs, oil etc) are highly likely to be bought impulsively if the shopper notices a price promotion. It’s a cliché, but you really do have to fish where the fish are.

“COMBINE A CATEGORY OPEN TO MULTIBUYS WITH THE TOP UP MISSION AND YOU WILL HAVE SHOPPERS SEARCHING OUT A MULTIBUY OPPORTUNITY.”

The final thing to consider on this topic of promotional activity is where do I need to talk to shoppers? The simple dividing line is to think about whether this needs to be an in-store conversation or whether you need to catch their attention before they enter the store. This matters a lot because unless you have a clear idea of where shoppers are likely to be in the mindset to notice what you are trying to tell them, you may be spending all your activation money in a place where it isn’t going to be effective. If we are talking about pre-store communications, then what we are talking about is any kind of messaging the shopper sees before they

It’s a melting pot

What is hopefully clear by now is that to just put a promo price on a product and walk away thinking the job is done is far too simplistic. The convenience channel possesses a wide variety of shoppers with very different mindsets, and how they perceive promotions plays a significant role in how you should design your promotional programs and activations. Listen to your shoppers, they will tell you what you need to do.

Shopper Intelligence interviews more than 45,000 shoppers in New Zealand across the Supermarket, P&C and Traditional Liquor channels in order to drive strategic shopper-led commercial decisions at retailer, category, segment and brand levels. If you want to understand your shoppers better, contact Andrew Arnold, Country Manager at Shopper Intelligence New Zealand at andrew.arnold@shopperintelligence.co.nz.

FMCG BUSINESS - SEPTEMBER 2021

[ convenience & impulse retailing ]

AMPOL LAUNCHES NZ$2BN BID FOR Z ENERGY TO CREATE TRANS-TASMAN FUEL GIANT A successful transaction would create a Trans-Tasman leader in fuel with significant regional scale and an integrated supply chain. Ampol has confirmed that it is in exclusive talks to acquire New Zealand fuel distribution and retailing company, Z Energy. Headquartered in Wellington, Z Energy owns and manages around 330 petrol stations and truck stops in New Zealand under the Z and Caltex brands, supplying four billion litres of fuel annually. Ampol has proposed to acquire 100% of the shares of Z Energy Limited for a cash offer price of NZ$3.78 per share. Ampol’s offer price is a compelling value proposition for Z Energy shareholders and represents a 35 per cent premium to last close on 26 July 2021. It also represents a 47 per cent premium to last close price prior to the first offer on 2 June 2021. In addition to the offer price, Ampol’s proposal includes a dividend adjustment mechanism which permits Z Energy to pay a dividend equal to NZ 0.055 cents per share per calendar day, for each day that the transaction extends beyond 31 March 2022, up to a limit of NZ 10 cents per share. Subject to further discussions with Z Energy, Ampol is also willing to consider an amendment to the current proposal to include partial Ampol share consideration. The Z Energy Board has concluded that it is in shareholders’ best interests to grant Ampol a four-week period for confirmatory due diligence which will be conducted on an exclusive basis. Ampol’s CEO and Managing Director, Matt Halliday, highlighted the benefits a successful acquisition would bring to both the Australian and New Zealand markets. “Z Energy is a logical growth opportunity for Ampol as both companies are market leaders in their respective home markets and have very similar business models. A successful acquisition would create an ANZ leader in fuel, with significant regional scale and trusted and iconic brands on both sides of the Tasman. “Ampol has a strong track record of reliably delivering transport fuels in New Zealand, with NZ$80 million invested since 2016. Should a transaction proceed, Ampol believes that it will bring considerable benefits to the New Zealand market, helping to maintain fuel security and support New Zealand industry. Given the ongoing work of both organisations in energy transition, a combined entity would provide a new, larger platform, supporting the development of lower emissions energy solutions for customers across Australia and New Zealand. 50

FMCG BUSINESS - SEPTEMBER 2021

Matt Halliday, CEO and Managing Director, Ampol

“We look forward to working with the Z Energy team to complete our confirmatory due diligence such that a transaction can ultimately be put to Z Energy shareholders.” The proposed transaction is expected to be subject to customary conditions, which include a Z Energy shareholder vote and New Zealand Court and regulatory approvals, namely, obtaining a clearance under the New Zealand Commerce Act and Overseas Investment Act. As part of the New Zealand Commerce Act clearance process, Ampol intends committing to a material divestment to ensure any potential competition law issues are fully addressed because of the transaction (this may include a full divestment of Gull). The transaction would be conditional on obtaining clearance, which would be based on this divestment undertaking (to be agreed with the New Zealand Commerce Commission). It is expected that divestments would occur within a prescribed period following completion of the transaction. Ampol is willing to work with Z Energy and relevant regulatory authorities, including Overseas Investment Office, and is confident in its ability to receive required approvals. Subject to finalising commercial terms, due diligence, and regulatory approvals, Ampol intends to fund the acquisition in accordance with its Capital Allocation Framework, which would include new debt facilities, proceeds from any divestments, and an equity issuance in the order of A$600 million. The equity issuance could be in the form of partial share consideration to Z Energy shareholders or Ampol conducting a pro rata entitlement offer to its own shareholders, which would be done following regulatory approval and nearer the date of completion.

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