Frucor Suntory News Q3 - 2023

#TheRealMcCoy

Quarter 3 Update 2023

News

Organic by nature, premium by design: The Real McCoy Organic Juice

The Real McCoy products deliver a true to fruit taste that cater specifically to the refined palate of adults, without artificial colours, flavours, or preservatives.

Embodying charisma and sophistication, we offer a unique approach to juice that appeals to those seeking quality and authenticity. The impactful design of our bold black packaging and vivid fruit imagery, especially evident in our premium 1L pack format, speaks volumes about the genuine quality we pledge to our consumers.

While The Real McCoy has firmly established its presence on grocery shelves, we’re excited to extend this experience beyond the home. Proudly backed by Frucor Suntory, we’re poised to introduce our sophisticated taste to a broader audience.

Soon, The Real McCoy will make its way into your favourite cafés in The Real McCoy Organic glass range, offering diners a premium juice experience to pair with their plates.

Look forward to enjoying The Real McCoy’s distinctiveness in more facets of your life.

The Real McCoy Single Fruit Flavours

The Real McCoy Organic Juice

The Real McCoy Sparkling

The Real McCoy is perceived by consumers* as...

The ‘best quality’ juice

The ‘healthier choice’ by its use of natural ingredients

A brand for adults

The Real McCoy brings a premium brand to premium outlets

We sent our Business Manager Dave Eley out to talk to our caf é customers to understand what is making them tick in the current climate, and how their relationship with Frucor Suntory is beneficial to growth. Here’s what they had to say.

Tatiana and Richard, Robert Harris, Whakatane

Tell us about yourselves – how long have you owned your Robert Harris café and what is your background?

We have been at Robert Harris Whakatane for almost two years. We came back to Richard’s hometown of Whakata - ne after a decade of living in Switzerland where we had a popular chocolate factory and café We are proud to have won the Rookie of the Year award to be acknowledged as the best new Robert Harris café owners at last year’s franchise conference.

What’s your experience been like with Frucor Suntory and how do they align to your business?

Installing an open air chiller to better display our bottled drinks was one of the first major improvements we made to the

café after taking over. It gave the café a fresh, new look and made over-the-counter bottle sales much less time consuming for staff. Most importantly, our bottle sales have increased significantly, with a more than 24% uplift.

Our Development Manager Rodney made the process extremely easy and he is always helpful and supportive of our business.

What do you enjoy best about the Frucor Suntory portfolio?

We appreciate the variety available to us and we are always keen to try new products or promotions.

What would you say to anyone who’s considering partnering with Frucor Suntory or stocking their beverages? Go for it! Frucor Suntory has trusted brands which cater to everyone in the family and really compliment most menus.

Most importantly, our bottle sales have increased significantly, with a more than 24% uplift.

Sam, Common Ground Café, Wellington

What drew you to partner with Frucor Suntory?

Before we started Common Ground Café, we had a previous working relationship with Frucor Suntory. This played an important role in establishing our current partnership and the support has been outstanding. Common Ground Café is targeted towards higher-end customers, and we feel that the Frucor Suntory portfolio, in particular the new glass range from The Real McCoy, aligns really well with our other products and overall vibe of the café

What do you enjoy best about the Frucor Suntory portfolio?

Common Ground Café is part of the Waitohi Hub which consists of a kindergarten, Keith Spry swimming pool, and Johnsonville library. This means we have a wide range of customers visiting our café through the various resources surrounding our business.

What we love the most about Frucor Suntory’s portfolio is the wide range and the versatility of the products that suit all our customer’s needs, whether it be kids after story time at the library, energy drinks for swimmers or juices for mums.

What excites you about the upcoming / ongoing partnership with Frucor Suntory?

We are excited that Frucor Suntory are always willing to innovate as they understand what the consumer likes and desires. This is illustrated in the brand refresh across The Real McCoy range, and how it’s tailored to cater to café environments which have different requirements to a dairy or bakery.

What would you say to anyone who’s considering partnering with Frucor Suntory or stocking their beverages?

Frucor Suntory offers a great, reliable service with an easy ordering system. Their sales reps are always keen to partner up and work with you to achieve any promotion or marketing event that you want to run.

Jon Hassall, Chief Operating Officer

– Café Brands (Columbus Coffee)

What drew you to partner with Frucor Suntory?

Columbus Coffee initially partnered with Frucor Suntory due to access of a full portfolio, strong brands and its commitment to NPD and innovation. Over the years, we have fostered a strong partnership based on trust, alignment on common values (including sustainability measures) and the teams just work really well together.

What do you enjoy best about their portfolio?

Frucor Suntory have a broad offering with award winning brands. They are constantly innovating and improving their range, offer and level of service, and communication of their intentions and news is managed really well.

What excites you about the ongoing partnership with Frucor Suntory?

Columbus Coffee is in an exciting growth phase including new locations, new formats, and new daytime offerings. We believe Frucor Suntory are the right partner to be on this journey with us.

Together we are working through a 12-month partner marketing plan. It’s halfway through the year now and we’re seeing a lot of value in executing this way compared to a more generic/ad hoc approach. Our plan is built on our customer data with bespoke outcomes and milestones that both parties are working towards.

What would you say to anyone who’s considering partnering with Frucor Suntory or stocking their beverages?

My ongoing experience of the partnership is incredibly positive. I enjoy the level of support and communication and I know when problems arise – inevitably, they do too. We have a robust and respectful relationship to ensure swift and positive resolutions.

The entire team are positive, practical, effective and to fun to be in partnership with.

Columbus Coffee was born way back in ’94, amidst a nation of devout tea drinkers.

Four Kiwi coffee aficionados met over an espresso and decided they wanted to share a different kind of coffee experience. After much crafting, the original Columbus Coffee café opened its doors in Auckland’s bustling High Street.

With this new type of café, Columbus Coffee started the conversation about premium coffee and true café experiences. A conversation that has continued on with great momentum and influenced many of today’s cafés. Columbus Coffee now numbers over 70 locally owned cafés, including those situated in Mitre 10 MEGAs –a highly successful partnership with another trusted Kiwi brand.

And through this growth their focus has remained the same – variety, freshness, quality and a welcoming experience. Columbus Coffee hope every customer visit leaves them feeling refreshed and inspired to return.

Cultivating new growth opportunities together

In May 2023, Frucor Suntory began a partnership with Farmlands as their exclusive beverage supplier. With 82 retail stores nationwide and over 80,000 shareholders, Farmlands are the largest buying group of its type in New Zealand.

In 2022, Farmlands embarked on journey of change as they looked to set themselves up for a future where they can deliver more value to their customers. We’re excited to partner with Farmlands to help deliver this value by providing them good impulse solutions along with future thinking around take-home solutions when ready. We spoke with Category Manager Joshua Edeson on the new partnership.

What drew you to partner with Frucor Suntory?

When exploring all partner options, Frucor Suntory really aligned with our values and goals, and they had similar expectations of the needs for a supplier in our industry. It was clear from the start that they understood the category, how it could work for Farmlands, and what they would do to get us there. They also provided evidence of their commitment to sustainability during the tender process. It was clear that this is important to Frucor Suntory as it is with us too.

What excites you about the upcoming partnership with Frucor Suntory?

As the rural landscape evolves, so too do the products and services needed. Farmlands aims to be the go-to for everyone connected to our land, and is investing in new systems and expertise so that we support profitability on-farm while catering for the lifestyle market as well.

Frucor Suntory’s full portfolio of beverages is important as we expand. New products like Suntory BOSS Coffee are exciting as it broadens what’s on offer to our members.

We’re also appreciative that they donated water and other beverages to our impacted branches following the recent cyclone. This was appreciated by our team and shareholders, and shows clear evidence of Frucor Suntory’s commitment to the community and partners.

What would you say to anyone who’s considering partnering with Frucor Suntory or stocking their beverages?

We wanted a partner that could offer our members a great range, but also has the same goals and values as us. Not only does Frucor Suntory come with a wide range of great tasting drinks across multiple categories and customer need states, but they are actively invested in sustainability.

Since we’ve started working together, we’ve had an extremely supportive and open account manager who has been committed to finding solutions that work for our business – clearly demonstrating that they have the expertise and knowledge to build the right range for our business, and have the operational acumen to execute it.

It was clear from the start that they understood the category, how it could work for Farmlands and what they would do to get us there.

Keep

Northland

Dargaville

Kaitaia

Kamo

Waipapa

Whanga - rei

Auckland

Helensville

Pukekohe

Wellsford

Waikato

Hamilton

Hautapu

Huntly

Matamata

Morrinsville

Ngatea

Paeroa

Putaruru

Taupo -

Te Awamutu

Te Kuiti

Tokoroa

Bay of Plenty

Opo - tiki

Rotorua

Tauranga

Te Puke

Te Puna

Whakatane

Gisborne

Gisborne

Hawke’s Bay

Hastings

Napier

Waipukurau

Wairoa

Taranaki

Hawera

Inglewood

New Plymouth

Opunake

Stratford

Manawatu-

Whanganui

Dannevirke

Feilding

Levin

Marton

Pahiatua

Palmerston North

Taihape

Taumarunui

Whanganui

Wellington

Greytown

Masterton

Otaki

Tasman

Motueka

Richmond

Marlborough

Blenheim

West Coast

Greymouth

Hokitika

Westport

Canterbury

Amberley

Ashburton

Culverden

Darfield

Fairlie

Hornby

Kaikoura

Leeston

Rangiora

Temuka

Timaru

Waimate

Yaldhurst (FeedBarn)

Otago

Alexandra

Balclutha

Cromwell

Kurow

Mosgiel

Oamaru

Ranfurly

Tapanui

Southland

Gore

Invercargill

Mossburn

Otautau

Winton

an eye out for all your favourite ice-cold drinks at these Farmlands locations across New Zealand.

54.86% of 14,062 participants chose the taste of Pepsi Max in blind taste tests against full sugar Coca Cola across New Zealand from 17.10.22 to 30.03.23

Frucor Suntory, the New Zealand distributor of Pepsi Max, is delighted to reveal these findings, says Ben Andrews, Frucor Suntory Oceania Head of CSDs & Partner Brands.

“The Pepsi Max Taste Challenge asks Kiwi cola drinkers to challenge their taste buds and it’s significant, and satisfying, to see their taste preferences coming through. This year’s results are the best we’ve seen.

“We think this will really challenge people’s preconceptions about colas and will build a new appreciation for the refreshing taste of Pepsi Max, making people think twice about the cola they pick out of the fridge.

“These results are underpinned by really strong sales growth for Pepsi Max, with sales growing year on year, far ahead of the wider cola category.”**

The challenge was conducted across the country and involved a short questionnaire followed by a blind taste test of Pepsi Max alongside the biggest competitor full sugar cola. Pepsi Max was the preferred drink for all age groups, genders, and locations.

The Pepsi Max taste challenge has been conducted across New Zealand, United Kingdom, Australia and Europe, having last been conducted on our shores in 2021 where Pepsi Max was again deemed the preferred choice.

To celebrate the results of the challenge, Pepsi Max ran a ‘Taste of Victory’ media campaign throughout May and June with the news of Pepsi Max winning the battle of Kiwis’ taste buds heroed across the front covers of New Zealand papers, as well as screens and billboards.

To stock Pepsi Max, contact Brent Snaddon, National BDM Frucor Suntory: brent.snaddon@frucorsuntory.com

*Pepsi Max Taste Challenge carried out across New Zealand from 17.10.22 to 30.03.23, surveying 14,062 participants. 54.86% of participants chose the taste of Pepsi Max in blind taste tests against full sugar Coca Cola. Blind testing was conducted in three Auckland malls and three universities from across New Zealand. The challenge was conducted by a third party.

**IRI, Total Scan Market $ sales, 2022 calendar year vs 2021 calendar year.

Pepsi Max has challenged New Zealand’s biggest selling full sugar cola to a blind taste test and the results are in, revealing over half of Kiwis prefer the refreshing taste of Pepsi Max that contains absolutely no sugar * .

Marketing and shopper support

Giving a helping hand to Kiwis

The demand for food assistance across New Zealand has soared by a staggering 165% since the beginning of the Covid-19 pandemic in January 2020, according to new research from the New Zealand Food Network.

Families and individuals across the country are grappling with the harsh realities of food insecurity, some uncertain about where their next meal will come from.

Frucor Suntory is committed to supporting the community and recognises the impact that rising costs and natural disasters have had on households throughout the country.

In line with our value of Growing for Good, we are pleased to share that we have donated over $900K worth of our drinks to the New Zealand Food Network so far this year.

This contribution has been aimed at supporting the most vulnerable among us and underscores our approach to connecting with our community.

The New Zealand Food Network serves as the crucial bridge between corporate donors and the communities in need. Through their extensive network of more than 60 food hubs strategically positioned across the country, they ensure that surplus and donated food reach those who need it most. This efficient redistribution system acts as a lifeline for individuals and families, allowing them to access meals and drinks.

We’re proud to be supporting the important work done by the New Zealand Food Network each day.

Suntory and Keep New Zealand Beautiful join forces on clean water education programme

Keep New Zealand Beautiful has welcomed Suntory as an official partner of its successful citizen science programme, Upstream Battle. This partnership combines Keep New Zealand Beautiful’s dedication to protecting our waterways and oceans with Suntory’s internationally recognised Mizuiku Education Programme for Nature and Water.

Upstream Battle engages students and individuals in collecting and auditing litter at crucial upstream sites to understand how rubbish enters waterways, contributing to ocean pollution. With the support of Suntory’s Mizuiku programme, Keep New Zealand Beautiful will expand Upstream Battle to over 200 primary schools nationwide by developing additional resources and appointing an educational facilitator.

Frucor Suntory Oceania CEO Darren Fullerton says the company was seeking an education partner to bring Mizuiku, Suntory’s signature global water education programme, to New Zealand.

He emphasised the shared commitment to protecting water, stating that the partnership would bring positive change to the next generation.

“At the core of our Suntory business is a deep respect for water and commitment to protect this vital resource. Our partnership with Keep New Zealand Beautiful on Upstream Battle brings together the core principles of Mizuiku with a wellestablished citizen science initiative to create positive change with the next generation in New Zealand.”

Mizuiku, which translates to water education, teaches students about the water cycle, responsible water usage, and the connection between water and biodiversity. The programme started in

Japan in 2004 and has since expanded into Vietnam, Spain, Thailand, Indonesia, France, China, and now, New Zealand. With tailored programmes for each country, Mizuiku has been well-received by children and teachers that have participated in the programme, as well as by respective local governments. As of 2021, more than 320,800 children and teachers have participated in the Mizuiku programme globally.

Keep New Zealand Beautiful CEO Heather Saunderson expressed excitement about the collaboration, highlighting the alignment between the Mizuiku programme which teaches the next generation about the value of fresh, pollution-free water, and Upstream Battle which aims to identify the root causes of this pollution in New Zealand’s waterways. The partnership will help bring both programmes into more schools across New Zealand, strengthen the global collaboration of the citizen science programme, and further identify the causes of water pollution.

Schools can now participate in an Upstream Battle presented by Mizuiku by signing up at www.knzb.org.nz. Schools will benefit from online resources and can register for an in-school session with an educational facilitator.

At the core of our Suntory business is a deep respect for water and commitment to protect this vital resource. Our partnership with Keep New Zealand Beautiful on Upstream Battle brings together the core principles of Mizuiku with a well-established citizen science initiative to create positive change with the next generation in New Zealand.

Frucor Suntory Oceania CEO, Darren Fullerton

Building for tomorrow at Swanbank

Last year we announced a second Australian based manufacturing and distribution facility which will deliver a stronger, smarter supply chain for Oceania.

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. Located in Ipswich in Southeast Queensland, our new facility will be a game changer, enabling us to be more efficient and deliver greater volumes to our customers across our trans-Tasman supply chain.

Construction is underway and we are on track for operations to commence in mid-2024.

Pictured left: Suntory Beverage and Food CEO Makiko Ono visits Swanbank

Meet Mark Toomey, our Transformation Program Director

We sat down with our Transformation Program Director, Mark Toomey, who’s leading the construction of our new facility in Queensland, to hear more about his role and what’s happening onsite.

Tell us about you and your role.

Mark: I am responsible for the creation of our new greenfield site in Swanbank. Everything from the build of the facility to the machinery we need to become operational to start producing quality beverages.

It’s not often you get an opportunity to create something at this scale, in fact this will be the single largest FMCG investment into Australia and it’s very special to be part of it.

What’s the most exciting part of leading the Swanbank greenfield project?

To be building a sustainable and innovative manufacturing facility that aligns with Suntory’s commitment to reducing our environmental impact is incredibly exciting. It also allows for the implementation of the latest technologies and practices, which will set a new standard for the industry. I can’t wait to see the project come to life and see the positive impact it has to our company and the wider community.

What is something most people wouldn’t know about your job?

Most people probably don’t know how many different organisations and businesses we are working with to build the site. Collaborating with a big group of stakeholders requires a lot of creativity, agility, pace and engagement from everyone involved.

I always have the future site team in mind with every decision, thinking about how we

can improve customer experiences, reduce waste and drive performance in a safe way whilst delivering on our quality and sustainability goals.

What do you see as the next big trend in FMCG?

The use of immersive reality technologies such as augmented reality and virtual reality for training and 3D modelling is really taking off. We’re exploring these kinds of technologies for our new facility, and we’ve been able to solve problems and connect with customers and consumers across the value chain as we plan.

As the world becomes more digitised, the FMCG industry must embrace new technology and drive innovation.

Suntory’s Yatte Minahare spirit encourages us to dream big – what does that mean in the context of your work?

This project is really the definition of the Yatte Minahare spirit, we’re dreaming big and making those dreams a reality! The team demonstrates this value each day on the project, from site selection and now the creation of a world-class operation.

Pictured above: Darren Fullerton, CEO Frucor Suntory (left) and Mark Toomey, Transformation Program Director (right).

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

National BDM – Hospitality – Dave Eley david.eley@frucorsuntroy.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