Frucor Suntory Sales Q2 - 2023

No 1 coffee in a can from Japan

Suntory BOSS Coffee has been crafting quality iced coffee in Japan for over 30 years using an authentic flash brew process, which ensures the true flavour of coffee is unlocked in the convenience of a can.

Since its launch in New Zealand in 2019 it has delivered consistent growth, selling over 2.6 million cans and securing an 89% share of the RTD coffee market.

Aimed at 18 – 35 year old workers, Suntory BOSS Coffee offers a refreshing pick-meup, able to be enjoyed anywhere, anytime as the second, third, or even fourth coffee of the day.

The latest flavour launch, Iced Mocha, takes the total offering to six, providing options for lovers of all coffee types.

The RTD coffee market is expected to continue delivering strong future growth, with consumer trends driving a different need than other beverage categories.

. Busy lives need energy

Consumers need energy more than ever to tackle their busy lives, but they want natural, better for you sources that are quick, convenient and readily accessible.

. The growth of coffee

Coffee is a $20 billion category globally and it’s growth shows no sign of slowing down. It’s seen as natural, crafted, adult, pleasurable and efficacious all in one. RTD coffee delivers a quality, socially credible and readily available option.

. Gen Z will reshape the coffee market

Generation Z consumers love cold coffee drinks – in fact, 60% of Gen Z consumers drink RTD coffee. Gen Z’s preference for cold coffees represents a shift within the coffee market, which sees RTD coffee thrive.

BOSS Coffee has totalled $11.3 million in sales in the first three

In the latest MAT, BOSS Coffee is growing at +56.4% vs YA, delivering 81% of RTD coffee growth.

years.

BOSS All other brands

The launch of Iced Caramel Latte in New Zealand in September 2022 broke sales records... until Iced Mocha came along.

Check out the stats on the following page.

After the first 13 weeks in market, Iced Caramel Latte was the number one selling RTD coffee, being 80% incremental to the BOSS brand and 78% incremental to RTD coffee.

For 53% of shoppers, Iced Caramel Latte is the only flavour they buy.

all

Suntory BOSS Coffee range delivers to all key flavour partitions,

12% of coffee occasions

Source: Hot Coffee Sales by Variant FY 2021

22% of coffee occasions

50% of coffee occasions

16% of coffee occasions

Frucor Suntory partners with new kid on the block –Wahlburgers

On the 1st of March 2023

New Zealand welcomed global food sensation Wahlburgers to its shores, with the opening of its flagship store on Princes Wharf on Auckland’s waterfront.

The Wahlberg brothers – chef Paul and actors Donnie and Mark – founded the chain in Massachusetts in 2011. There are now 91 Wahlburgers around the world.

The New Zealand venture is owned and operated by the Mustaca family, who own Australia’s largest independent cinema chain, United Cinemas. The Auckland restaurant has capacity for 240 people and due to its location and size, can stay open late and serve as a key downtown destination.

The Auckland site has created approximately 75 jobs, and with further expansion planned in Tauranga and Queenstown, Wahlburgers will soon provide employment for around 350 staff across the country.

As part of it’s mouth watering burger offering, Wahlburgers has partnered with Frucor Suntory to exclusively offer its customers the Pepsi range of beverages.

Wahlburgers has added a Kiwi twist to the staple “The Our Burger”, adapting it to “Your Burger” with added pineapple, beetroot and egg. The menu also incorporates other great twists such as boozy shakes and Pepsi Spiders. Pop in and try one next time you pass!

We asked Ashley Steriti (Marketing Manager – Wahlburgers), some questions. Here’s what she had to say.

Why did you choose Frucor Suntory as the exclusive beverage partner?

We have a long running partnership with Pepsi in our cinema business, so it was important for us to maintain that relationship as we expand into food and beverage with Wahlburgers.

What are you most looking forward to in the New Zealand market?

Introducing Kiwis to the magic of the Wahlburgers menu. It’s important to us that as we introduce a new brand into New Zealand we understand the people and their flavour preferences. Guests will be surprised by the local touches added to the American flare when they dine with us. In addition to being a premier spot to enjoy a burger and a game, we look to join the community and partner with local brands to serve a greater cause.

What Frucor Suntory favourites will you find?

Diners at Wahlburgers will be able to select from the Pepsi range in both glass and cans, V Energy, and The Real McCoy juice range that can be ordered by the glass.

This is another huge win for Pepsi and Frucor Suntory. It’s also another notch in the belt for the #BetterWithPepsi campaign, which has recently seen partnerships with Better Burger, Pita Pit and the Mariposa Group.

We have a long running partnership with Pepsi in our cinema business, so it was important for us to maintain that relationship as we expand into food and beverage with Wahlburgers.

Ashley Steriti, Marketing Manager, Wahlburgers

Building for tomorrow at Swanbank

At Frucor Suntory, sustainability is part of our DNA. Discover more about our new net zero facility at Swanbank which shows our commitment to our sustainable future.

Last year we announced a second site based in Australia which will deliver a stronger, smarter Oceania supply chain. The new facility is designed to work alongside our New Zealand operations to unlock future growth across both markets, and will include beverage processing, packaging, warehousing, and distribution.

A connected Trans-Tasman supply chain is critical to help meet growing consumer and retailer demand and strengthen our in-house agility.

Our new facility, located in Ipswich in Southeast Queensland, will be a game changer for our business and we’re extremely excited about the opportunities it will bring for our people, consumers, and customers.

Our sustainable future

We are proudly part of Suntory group, who has been committed to ‘Growing for Good’ for over 120 years. This ethos and the idea of creating a tomorrow that is better than today is deeply embedded in the DNA of our business.

We want our net zero Australian site to be an example of that commitment and set a benchmark for our investment into sustainable technologies to minimise our carbon footprint across Suntory Group. With the benefit of a 17-hectare greenfield site, we are investing across a range of technologies to meet our net zero commitment to ensure our new site is world class – we’re talking solar, cooling, water recycling, waste management, and the best sustainable materials.

This is just the beginning. We can’t wait to share more about our plans as they come to fruition in the Oceania region!

About Swanbank: We are investing over $400 million into a new state of the art manufacturing and distribution facility in Ipswich, Southeast Queensland. Our new operation will enable us to be more efficient and deliver greater volumes to our customers in both New Zealand and Australia. Construction has started, and we are on track commence operations in 2024.

Hearing from the Frucor Suntory team

Meet Ian Goldschmidt, our new Sustainability Director – Oceania.

What is your role?

Setting the sustainability strategy and ensuring we have a clear roadmap to meet our 2030 targets. I’ve just joined the business from Fonterra, where I did a similar role and I’ve been so impressed with how sustainability is already embedded into the business. It’s been fantastic to see how we’ve managed to surpass our water usage targets six years ahead of schedule and understand how it’s being saved, recycled, and reclaimed in our daily operations. It’s a testament to our commitment and I’m excited to help steer us towards even greater improvements in the future.

What’s the most exciting part of leading such an important part of our future?

Suntory has a large emphasis on making sure its business has a clear plan to ensure we can meet its ambitions. It is inspiring to be part of an organisation that really believes in sustainability from the top down. For example, the new net-zero facility in Swanbank, Queensland will be industry leading in its sustainable practices and we are looking to use over 6000 solar panels on the roof which end to end is the equivalent of 14km – using the energy for the site and then sharing any excess back to the grid.

What’s your biggest challenge?

Our customers, consumers and partners all have high expectations when it comes to being more sustainable. Right now, one of our biggest challenges is reducing our scope three carbon emissions (indirect emissions resulting from activities and assets beyond our control, such as recycling and transportation). Addressing this will require a true partnership approach with our suppliers to implement innovative practices and I look forward to uncovering new sustainable ways of working.

How can our consumers support our efforts in sustainability?

It’s easy, recycle your packaging once you’ve finished enjoying your drinks. Currently 93% of our product range is recyclable and we are well on our way to get to 100% but to keep our environment clean and circularity in motion we need our packaging to go to the right places.

Suntory’s Yatte Minahare spirit encourages us to dream big, what does it mean to you and your work?

Dreaming big is crucial to protecting our environment. We’ve already made great progress in reducing water usage, and our ambition to lower carbon emissions will challenge us to think more broadly.

The Yatte Minahare spirit will be the driving force behind our sustainability strategy as we strive towards a brighter future for our planet in 2050.

Latest achievements

Peter Jowett Awards

P&C // Runner-up to the scholarship award

Gender Tick

Diversity, Equity and Inclusion // The Gender Tick accreditation allows Frucor Suntory to show its ongoing commitment to gender equality in the workplace.

Australian Network on Disability

Diversity, Equity and Inclusion // Silver membership with AND to help us become a more accessible and disabilityconfident business.

Foodstuffs

South Island Category Excellence Partnership Nomination

FSSI Team // Winner

NZACS NPD Award

P&C // New Zealand

Association of Convenience Stores Best Product Launch in 2021 winner. V Blue Sugar Free outsold any energy competitor launch seven times over.

TWL #1 supplier in Advantage survey

Grocery // Advantage Group named Frucor Suntory its number one supplier for TWL.

Foodstuffs North Island Members Choice Award

Grocery // Nominated as a finalist by the FSNI Members (cooperative) for supplier excellence.

Parents At Work Diversity, Equity and Inclusion // Member of Parents At Work as we continuously work on our policies to support families.

SAP Best Run Awards

Named a finalist in the SAP Best Run

2022/2023 –Brand of the Year Awards Ceremony

Global // Winner

Coal Face P&C // Nominated for Best Head Office Service & Support, narrowly missing out on first place by 0.1 points to CCEP, with our best NSS score in three years of 72.2.

Commercial Communications

Council Pressie Awards

Media – Brand // Mountain Dew’s Sweaty Boy campaign has been awarded silver in the Best Media Partnership category.

Commercial Communications Council Pressie Awards

Media – Brand // Pepsi Max was named as a finalist for Best Use of Social Media, Best Influencer Marketing Campaign and Best Sampling or Retail Activations.

Divergent Thinking

Diversity, Equity and Inclusion // ANZ neurodiverse education sessions.

Field online training modules and podcasts

Commercial // E-learning journey desinged to make learning more accessible – and podcasts to ensure efficiency as accessibilty to learning on the road.

Pepsi Max connects with consumers in summer hotspots

Activation – Brand // Ice-cold Pepsi Max sampled in summer hotspots across December and January including Hibiscus Coast, Auckland, Coromandel, Gisbourne, and Wanaka, as well as huge billboards across Coromandel and Cardrona.

MYSH

Commercial // New CRM sales tool – nominated for a SAP award.

Don’t stock any of the amazing products featured and want to hear more?

Please reach out to any of the following, or feel free to browse our website and at frucorsuntory.com

Head of New Business – Nigel Saunders nigel.saunders@frucorsuntory.com

National BDM – Brent Snaddon brent.snaddon@frucorsuntory.com

Upper North Island BDM – Alex Woonton alex.woonton@frucorsuntory.com

Central North Island BDM – Antoni Palmer anton palmer@frucorsuntory com

Lower North Island BDM – Simon Ward simon.ward@frucorsuntory.com

South Island BDM – Jesse McLorinan jesse.mclorinan@frucorsuntory.com