Frucor Suntory News Q4 - 2023

News

#summerfun Quarter 4 Update 2023

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Fruju and Just Juice bring a tropical treat to your freezer!

In an exciting collaboration, two of New Zealand’s most iconic brands, Fruju and Just Juice, have partnered to develop the limited edition Fruju Just Juice Tropical ice block. This delightful frozen treat is set to transport Kiwis to a tropical paradise with every bite over the summer.

Launching nationwide in October, Fruju Just Juice Tropical will keep you cool this summer, pairing the Just Juice Tropical flavour of pineapple, orange, mango and passionfruit we all know and love into refreshing frozen Fruju. This frozen treat promises an authentic taste experience that captures the essence of a tropical island getaway.

Lisa Pearce, Marketing Manager, Nutrition & Hydration at Frucor Suntory Oceania, expressed the spirit of this partnership, saying, “Imagine capturing the flavours of a tropical island getaway and freezing it into a delightful treat. That’s the experience we’re offering in our collaboration with Fruju and Just Juice”.

With a shared commitment to authenticity and real fruit goodness, this collaboration has been a fun journey for both brands. Pearce added, “Bringing together the tropical vibrancy of Just Juice with Fruju’s cooling expertise has been exciting as we look for new ways Kiwis can enjoy the refreshing flavours of Just Juice Tropical”.

Ben Schurr, Head of Tip Top said. “It was a natural fit to combine two iconic Kiwi brands. At Tip Top we take pride on using real fruit juice, and natural colours and flavours in Fruju ice blocks. We’re delighted to be working together with Frucor Suntory to bring the Fruju Just Juice Tropical ice block to market”.

Fruju Just Juice Tropical single serve sticks are available now in petrol stations and dairies, and multipacks are available in supermarkets.

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V Green just got a taste-lift Earlier this year we announced that our iconic energy drink V Green, the most popular energy drink in New Zealand, was getting a taste lift.

Since its launch 26 years ago, V Green’s evolution builds upon V Energy’s commitment to offering new, innovative options to meet changing consumer tastes and preferences. ‘Original’ energy drinks are the biggest division of the category and continue to maintain the year-on-year growth. The enhanced flavour and refreshed packaging have been carefully crafted to retain all that fans know and love, while dialling up the best bits. The new packaging embodies the essence of V Energy, which is all about spreading positive energy. It reflects beaming positivity while capturing the bubbly, fun and refreshing taste that V is known for and will feature across the range.

The new smoother, fruitier, tastier flavour has been a hit, with a 13 pt increase in purchase intent. Here’s what consumers had to say:

“V Green has gained an extremely loyal following since its launch 26 years ago. It’s iconic – people reach for V Green when they want a burst of energy and positivity to help them through the day. Our refined taste is everything people already love, with more of the best stuff – making it more refreshing, smoother and easier to drink than ever.”

Allison Yorston, Chief Marketing Officer Oceania, Frucor Suntory

Has a smooth texture to sip on and has a very crisp taste. Is amazing on a hot summers day to get some energy and refreshments in.

The taste was refreshing and the feeling uplifting.

I like the flavour strength of this product compared to the previous two. It isn’t too strong, has the perfect amount of sourness and is refreshing on account of the fruity kick. It’s light but flavoursome.

A lighter take on the classic green V flavour, much easier to drink and nicer.

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Crisp. Light.

Refreshing.

V Refresh has been the biggest energy launch in the last 10 years.

Introduced in 2022, the new drinks are bubbling with a light taste profile, no sugar and low calories.

V Refresh is bringing new shoppers to the energy category, with 33% entering through V Refresh alone. The repeat purchase rate of 28.7% is above all other competitors, based on their time in the market.

V Refresh has delivered 10 times more sales than all other competitor launches, selling 2.9 million additional units in the first 26 weeks in market. It is highly incremental to energy drinks, with 57% of shoppers exclusive to V Refresh within the V brand, over indexing in Gen Z. The newly released Green Apple Lemonade is sure to be a hit this summer, alongside our already popular flavours Pineapple & Watermelon, and Citrus Lemonade.

“We know our consumers love the taste of V Energy but they are also starting to look for options that are better for them.”

Allison Yorston Chief Marketing Officer Oceania, Frucor Suntory

Source: IRi MarketEdgeTotal Scanned Market NZ 26 weeks to 29/01/23, NZ Shopper Insights 26 weeks to 29/01/23.

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10x more sales than all other competitor launches

Repeat purchase rate of

28.7% (above all other competitors)

33% of new shoppers in the energy category have come via V Refresh

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Frucor Suntory continues to gain national accounts across QSR and entertainment Funlab In Funlab’s own words they are...

Australasia’s premiere creator of competitive socialising experiences.

Why did Funlab partner with Pepsi for its premier social entertainment venues in Australasia, including Archie Brothers Cirque Electriq and Holey Moley in Auckland, Wellington, and Christchurch?

Funlab, known for creating exceptional entertainment experiences across brands like Archie Brothers Cirque Electriq and Holey Moley Golf Club, chose Pepsi as its soft drink partner in New Zealand.

These venues, renowned for their premium locations and multi-million-dollar fit-outs, required a beverage partner that aligned with Funlab’s commitment to quality.

Funlab’s decision to partner with Pepsi for its New Zealand venues stems from Pepsi’s legacy and heritage as a globally recognised brand that consumers trust.

Pepsi brings not only a diverse range of beverages but also a track record of innovation and customer satisfaction.

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This partnership enhances the guest experience, offering high-quality beverages from a trusted brand at Funlab’s premier entertainment destinations.

The agreement is signed for the eight New Zealand venues being Archie Brothers Cirque Electriq and Holey Moley in Auckland, Wellington and Christchurch.

What makes you excited about the future with Frucor Suntory?

The ability to partner with a company who is more than beverage experience and advice. The team at Frucor have an enterprise approach to doing business and their category knowledge and industry expertise is fundamental to us learning and adapting. We can’t wait to see how the future unfolds for us.

Aby Abraham, Director

Chicking The Chicking Group have partnered with Frucor Suntory on an exclusive beverage agreement, which started on September 6th.

Passionately conceptualised in Dubai, United Arab Emirates, the first Chicking outlet was established in the year 2000, and since then, the brand has grown to become extremely popular with more than 270 outlets across 32 countries. Chicking is also proud to be one of the first fully Halal international QSR brands.

The rollout across our 11 sites took only three days to complete, from full chiller swap-outs, uniform production, menu design, and the opening of our new Gisborne site which has since been recorded as Chicking’s most successful launch globally.

“We appreciate your invaluable support during the asset rollout, which turned out to be much smoother than our initial expectations. We commend you and your team for your efficiency in this process.”

They currently have 11 sites across New Zealand with a further three stores opening in 2023 along with a strong pipeline and aggressive growth aspirations.

We reached out to Aby Abraham, Director of Chicking New Zealand, to get his feedback on the transition from Coca Cola to PepsiCo. Why did you decide to partner with Frucor Suntory?

We have noticed the momentum that Pepsi brands are experiencing in the market currently, in particular within QSR and bakeries. We have seen Pepsi’s above-the-line advertising and their social interactions with consumers and felt this would be a great fit for us as we continue to expand our brand throughout New Zealand.

Auckland: Albany, Botany, Glen Eden, Mangere, Manukau, Onehunga, Ormiston, Sandringham, Takanini

Make sure to check out these stores on your travels this summer

Chicking

Funlab 9

Award winners Advantage Group Survey Our New Zealand Grocery & Retail team has been ranked number one in the 2023 Advantage Group International Survey in the Core Supplier group. Four key areas are measured, and we were rated strongly across all of them: . #1 Partnership . #1 Execution

. #1 Reputation . #2 Vision

This achievement is a testament to our commitment to excellence and strong working relationships with our customers.

We are thrilled to have been recognised as the best in the industry and this result clearly highlights the strong trust we have built with all retailers.

Harry Ellis, Head of Grocery

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Pictured: Frucor Suntory’s New Zealand Grocery & Retail team who were ranked number one in the Advantage Group Survey

Our overall score tops that of the 2022 winner by four points, which shows we’re raising the bar for how to work with our retailers. Individually, we didn’t top any one grocery customer, but we were ranked very highly across the board which shows we have a consistently high quality of service for all our customers.

Beneath the Key Engagement Drivers were more pleasing results; we were rated first in Capability & Experience, Ease of Business, Trust, Category Growth, Collaborative Planning and Communication.

Our Grocery & Retail Team are clearly at the top of their game and looking forward to another great year in 2024.

NZ Association of Convenience Stores (NZACS) annual awards Frucor Suntory has continued its momentum with NZACS by taking out two of the key awards in June this year. The annual event has always been a highlight, with over 160 attendees from across the industry.

Robyn Wake was awarded Key Account Manager of the year, which is great recognition for her outstanding relationships and hard work in the channel.

This award ranks her as the best Key Account Manager for 2023 across the convenience industry in New Zealand.

Robyn Wake – Winner of Key Account Manager of the year award

V Refresh won NPD of the year 2022/2023 beating all other NPD launched in the industry (including Coca-Cola Zero Sugar) during that time period.

Jesse McLorinan, did a phenomenal job of presenting his concept The EV Lounge alongside six other finalists in the Peter Jowett Scholarships. Although he didn’t take away the top spot, his concept was well received and regarded as a top idea by many retailers and suppliers.

Katherine Ledger and James Hernandez – NPD of the year award (V Refresh)

Congratulations to our winners and thank you for all your hard work!

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Jesse McLorinan – Peter Jowett finalist

The latest from our new facility in Queensland, Australia Ever wondered what it’s like to lead a manufacturing and distribution facility?

Beam Suntory and Frucor Suntory recently announced an exciting new partnership, Suntory Oceania, to become the region’s new A$3 billion multi-beverage powerhouse.

Underpinned by quality craftsmanship and a strong sense of purpose, Suntory Oceania will deliver a combined portfolio of over 40 market-leading brands, powered by two local manufacturing sites, five distribution centres and more than 1,500 employees, to create the region’s fourth-largest ANZ beverage group.

Critical to the delivery of this vision is a brand new, state-of-the-art manufacturing and distribution facility in Ipswich, Queensland. Paul Woods will lead the facility and is in the process of recruiting his day one team. We sat down with Paul to learn more about him, his role at Frucor Suntory Oceania, and ambitions for the future.

Tell us about your role?

I’m the Site Operations Director at our new manufacturing and distribution facility in Queensland. Right now, my core focus is to recruit top talent for day one and operational readiness during construction. This includes safety, quality, and environmental systems, operational excellence, and setting up departments.

I also engage with the local community to share the Suntory Oceania story.

What’s the most exciting part of joining a greenfield project?

Apart from being part of the incredible $400 million+ investment, I am so excited to be developing a culture from the ground up.

A workplace where people come, stay, and grow with us. A workplace where people want to make a difference and be better together.

What are the biggest opportunities associated with your role?

Connecting Suntory Oceania with the community. Sharing what we are doing here at Swanbank, how our investment can support them and hopefully enticing some people to come and work with us.

What do you see as the next big trend in your field?

We’re in the process of creating one of the most cutting-edge Industry 4.0 facilities in Australia. As we forge ahead, I can’t help but wonder the limitless possibilities that lie ahead thanks to advancements in artificial intelligence.

What’s your favourite Frucor Suntory beverage?

I have favourite drinks for different occasions. Maximus whilst exercising, Suntory BOSS Coffee for the flavour and a boost and a Roku Gin to end the day.

In the summer of 2025, the Suntory Oceania partnership will go live in Australia, following suit in New Zealand at the start of 2026.

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The brand new, state-of-the-art manufacturing and distribution facility in Ipswich, Queensland, will be able to manufacture 20 million cases at first production with the opportunity to scale to 50 million cases in the future.

The facility will work alongside portfolio production sites in New Zealand, North America, Europe and Japan, and significantly expand our capability and capacity. It’s an exciting time to be part of the Suntory family!

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Frucor Suntory donations to the New Zealand Food Network January – October 2023 Together, we’re getting support to where it’s needed most.

5,203kg

$58,065

Gifted donations

Cost saving from other processing or diversion activity

195,022kg Surplus donations

524,991kg Total servings donated

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530,596kg CO2-equivalent averted from landfill

Through NZFN’s network, Frucor Suntory’s donations have reached all of these communities in need right across New Zealand!

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Tania Dalton Foundation announces sixth intake of scholarship recipients

Anne Kirikiri with Brad Erceg, Frucor Suntory Oeania’s New Zealand Sales Director

The Tania Dalton Foundation have added 12 exceptional young women to the cohort of scholarship recipients. The class of 2023 join 61 young talented sports women across New Zealand.

The Foundation was established in honour of the sporting legend, and Tania’s passion for providing opportunity for young women to unlock their potential and be their best selves.

Each recipient receives financial support, one-on-one mentoring, pastoral support, and personal development during the three years in the programme. A key aspect is for each young person to have involvement in their community and to ‘pay it forward’ so that future generations can continue to enjoy the benefits of sport.

Duane Dalton is excited about the ongoing reach of the scholarship programme, “Tania would be immensely proud of the work that we are doing and the impact that we are having on the lives of young people”.

Late in 2022 the foundation launched an impact video featuring Renee Holmes (current Black Fern and member of the World Cup winning team), in which she shares her journey as part of the inaugural class of Tania Dalton Foundation recipients.

Renee’s dad Laurie says, “All the workshops and the programmes that Renee has done through the foundation has put the cherry

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on top. Just having someone else showing how much they believe in my daughter has really instilled a confidence in her”.

This year Frucor Suntory is a scholarship partner and we’ve been supporting the impressive Anne Kirikiri. Anne is from Cambridge and is on full scholarship at St Peters School. An upcoming netball champion, she has played in the NZ Secondary School netball squad (2022), attended Netball NZ National Development Camp (2023) and been selected for the Waikato U18 touch team.

The class of 2023 Anne Kirikiri (Netball, Auckland/Cambridge), Braxton Gallagher (Netball, Hawkes Bay), Jaime Taunoa-Knight (Netball, Palmerston North), Kodee Williams-Sefo (Basketball, Auckland), Lucy Eastwood (Rowing, Cambridge), Olivia Tukia (Surf Lifesaving, Auckland), Phoenix Schwalger (Netball), Praise Hola (Netball, Dunedin), Rosie Falcous (Netball, Dunedin), Temepara Walker (Basketball, Hamilton), Tyla Pita-Kani (Softball, Wellington), Waikimihia DouglasKarauna (Basketball, Rotorua).

Trends, opportunities and resilience in New Zealand’s beverage industry We sat down with Frucor Suntory Oceania’s New Zealand Sales Director, Brad Erceg, to talk about the dynamic and everevolving beverage industry.

interest rates. Despite these hurdles, we’ve united as an industry to meet the needs of consumers. We haven’t let these challenges hold us back, and at Frucor Suntory we’ve stayed laser-focused on where to invest our time and energy. We continue to take a category centric approach to deliver best in class innovation.

What trends have you seen over the past 12 months?

How do you see the role of innovation in shaping the future of the New Zealand beverage industry?

We’ve witnessed significant shifts, particularly in the energy and transformation sector. We’ve invested heavily in understanding category evolution and growth drivers, and our role in leading this progress. It’s been fantastic to see this research is translating into tangible market results. The traditional energy category continues to grow steadily, while permissible options have seen exponential growth, contributing to a robust year-onyear category growth of +12.2%. Notably, our brand iconic V Energy consistently outperforms competitors. Low- to no-sugar options have continued to be increasingly popular, and we’ve been paving the way with the development of V Refresh, which was the biggest launch in the category in the last five years*. Furthermore, the growth of ready-to-drink coffee sector, exemplified by Suntory BOSS Coffee, continues to storm. To give you an idea of our current market penetration, 63% of Kiwis have consumed at least one Frucor Suntory brand in the last twelve months*.

It’s been a huge year for the business; can you share some highlights?

The beverage industry, from suppliers to retail partners, has displayed remarkable resilience this year amidst challenges such as supply chain disruptions, CO2 shortages, natural disasters, and rising

*Roy Morgan, Dec 2022

We take a category-centric, customerfocused approach to innovation. For instance, our expansion into permissible and zerosugar options with V Energy Refresh, demonstrates our commitment to meeting evolving consumer preferences.

We’re also continuing to evolve our core range, as seen in the updated V Green (New Zealand’s most popular energy drink).

This builds on our commitment to ensuring it meets the tastes and preferences of its drinkers. Extensive research confirmed that, while fans love V Green unconditionally already, they thought it could be taken up a notch to amplify refreshment and enhance the fruity flavours already found in V. What can customers expect in 2024?

We recently announced we are creating ‘Suntory Oceania’ – a $3 billion multibeverage group with over 40 market-leading brands across Australia and New Zealand.

It’s early days, but the next few years will be all about laying the foundations for the partnership to be live in New Zealand from January 2026. This new venture is all about bringing the best of Suntory to Oceania and we strongly believe it will redefine market dynamics and offer consumers more beverage moments from sunrise to sunset, unlocking opportunities for our customers, consumers and over 1500 Suntorians.

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Our new partnership – bringing the best of Suntory to Oceania In August, we announced a new partnership with Beam Suntory: Suntory Oceania, a new AU$3 billion multi-beverage partnership across the premium spirits and non-alcohol segments in both Australia and New Zealand.

Under the Suntory Oceania umbrella we will create the fourth-largest ANZ beverage group in Oceania with full endto-end control of its portfolio, including manufacturing, sales, and distribution.

Preparation will start now to ensure the partnership is operational for mid-2025 in Australia and 2026 in New Zealand.

Suntory Oceania’s 40 market-leading brands will include Jim Beam® and Maker’s Mark® bourbon, Hibiki® Japanese whisky, Canadian Club® whisky, -196, V Energy, Maximus, Suntory BOSS Coffee among many more, and spans premium spirits, RTD (ready-to-drink) alcohol beverages,

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juice, water, soft drinks, coffee, energy and sports drinks.

Frucor Suntory CEO Darren Fullerton said, “This new venture is all about bringing the best of Suntory to Oceania. With the ability to accelerate our growth trajectory, we strongly believe it will redefine market dynamics and offer more consumer beverage moments from sunrise to sunset, unlocking innovation for our customers across retail and hospitality industries”.

Mark Hill, Managing Director of Beam Suntory Oceania, commented, “This collaboration demonstrates our belief in the growth potential of the Australian

and New Zealand markets. When other businesses are pulling back, we are forging ahead, bringing Suntory’s spirit of bold ambition to life”.

The largest single FMCG investment in Australia in over a decade, the construction of a new AU$400 million, net zero facility in Ipswich, Queensland, will be the catalyst for Suntory’s growth ambitions.

Complementing current manufacturing operations in Auckland, the new Queensland site will become home to additional beverage processing, packaging, warehousing and distribution.

The new facility is on track to be operational in mid-2024 with the ability to produce 20 million cases on start-up and over 50 million cases in the future.

Fullerton added, “At Suntory, we are proud of our nearly 125-year-old focus on Growing for Good. The new site sets the industry standard in terms of investment into sustainable technologies to drive efficiency and minimise our carbon footprint. We are looking at a multipronged strategy through a CleanCo solar

When other businesses are pulling back, we are forging ahead, bringing Suntory’s spirit of bold ambition to life.

Mark Hill, Managing Director of Beam Suntory Oceania

power purchase agreement, over 14km of solar panels on site, biomass boiler and state-of-the-art production equipment”.

Growing for Good also means fuelling the economy, with Suntory expanding the current workforce and hiring over 400 roles as the partnership comes to life from mid-2025.

“With Suntory Oceania, we are looking to the future with optimism and a wholly owned platform from which to build the long-term growth of our brands for years to come.

It is the perfect opportunity for us to build upon the strength of Suntory as the global leader across the beverage sector,” Hill said.

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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 – Anton Palmer anton.palmer@frucorsuntory.com Lower North Island BDM – Simon Ward simon.ward@frucorsuntory.com Upper South Island BDM – Jesse McLorinan jesse.mclorinan@frucorsuntory.com Lower South Island BDM – Georgie Thornton georgie.thornton@frucorsuntory.com