Frucor Suntory News Q1 - 2024

New V Zero Sugar Original in stores now

We’re thrilled to announce the arrival of a game-changing, new energy offering, V Zero Sugar Original. This new V Energy flavour is packed with the classic V Original taste, without the sugar, making it the perfect energy offering for sugar conscious consumers.

The low to no sugar segment continues to be a key growth driver for the energy category, with an abundance of new and exciting innovations being launched each year. Providing consumers with zero sugar alternatives to the drinks they love is a key focus for the V Energy team. We’re proud of the liquid we’ve created and the extensive work that has gone into creating this tasty taste match for V Original.

V Zero Sugar Original utilises a unique proprietary sweetening blend to create a taste experience that matches V Original as close as possible without using sugar. The new formulation has been designed alongside consumers and undergone extensive testing to ensure V Zero Sugar Original has all the original flavour consumers love.

This new offering has been created as a new and improved formulation of V Sugarfree which was launched over 20 years ago using generation one sweetening technology.

This technology delivered sweetness without sugar, but failed to deliver the same aroma, mouthfeel, or aftertaste as a full sugar drink. Now, more than 20 years later, Suntory is at the forefront of sweetening technology development and has invested significant time and effort into replicating the full sugar taste experience. The result is a delicious drink that holds the flavour punch and energy kick of V Original, without the sugar. We’re confident consumers will love the new taste.

To go along with the refreshingly tasty new liquid, we’ve given V Zero Sugar Original a new look with a sleek silver and green design. The new look and flavour is available now across all retail outlets.

Try for yourself this summer and enjoy the smooth, fruity flavour of V Original with Zero Sugar.

Keep a look out for these awesome V Energy playing cards hitting stores from March 2024. Follow the instructions on the in-store signage to instantly score yourself a free pack!

Fizzed with NPD success

Whether it’s the fusion of unexpected flavours, the infusion of functional benefits, or the exploration of global tastes, the market is buzzing with innovation.

As consumers increasingly seek unique and memorable experiences, Frucor Suntory continues to raise the bar. Inviting us all to the excitement through flavour extension and innovation across all major beverage categories, the results of all NPD launches in 2023 have been successful.

Here are just a few highlights to share.

V Tropical Tang

V Energy introduced V Tropical Tang, the new full sugar addition to the range which came in hot and achieved sensational results. The 500mL variant was the fifth energy NPD at launch with both SKU sizes delivering $855k of sales in the first 13 weeks with success across all channels.1

$855k of sales in the first 13 weeks

V Refresh Green Apple Lemonade

The welcoming of Green Apple Lemonade to the V Refresh family was felt with strong distribution across all channels. The rate of sale within the launch period emulated the distribution, moving it straight to the top of the low to no sugar category.2

Gatorade Fierce Grape

Entering the portfolio, Gatorade Fierce Grape provided plenty of highlights. Shooting straight to the number two Gatorade flavour in New Zealand, it’s easy to see how it also became the second biggest NPD beverage launched in 2023.3

Top low/no sugar energy drink

#2 Gatorade flavour in NZ

Display activations

The field team have been out in force over recent key activation periods bringing their authenticity and personalised experiences to the trade to forge deeper connections with their customers and create impactful displays that build brand loyalty.

The V Bugs commercial plays on screen above a fridge full of V

PAK’nSAVE activation

A popping Pepsi 24pk launch display

BP Connect activation

Pepsi digital window display

A convenient revolution – vending

Vending machines have become an integral part of modern life, offering convenience and accessibility to a wide range of products. In New Zealand, these automated retail wonders have experienced a surge in popularity, transforming the way people access goods and services. From traditional snacks to innovative local products, vending machines cater to diverse consumer needs, making them a ubiquitous presence in urban landscapes.

We caught up Frucor Suntory’s Channel Manager Shane Snaddon on how vending machines are going through a period of growth.

What are the key trends you’re seeing across the vending network?

One of the key factors contributing to the success of vending machines in New Zealand is the diversity of products they offer. Healthy snacks, locally sourced foods, hygiene products, and even electronic gadgets can now be found in vending machines across the country, however the role snacks and beverages play continues to remain at the forefront and is evolving.

What does the future of vending look like?

Advancements in technology have played a crucial role in enhancing the functionality and appeal of vending machines in New Zealand. Cashless payment options, touchless interfaces, and interactive screens have become standard features, making transactions seamless and user-friendly.

The integration of smart technology also enables real-time inventory tracking, ensuring that machines are consistently stocked with fresh and popular products.

How does Frucor Suntory play a role in the vending?

The proliferation of vending machines in New Zealand reflects a shift in consumer expectations and preferences. The diversity of products, convenience, and integration of technology have made these automated retail units an essential part of the modern Kiwi lifestyle. As the industry continues to evolve, it is likely that vending machines will play an even more prominent role in shaping the retail landscape of New Zealand and Frucor Suntory is the right partner of choice.

Contact Shane at shane.snaddon@frucorsuntory.com

Frucor Suntory announces

Brad Erceg as General Manager for New Zealand

Brad Erceg as been appointed as the General Manager, New Zealand. His leadership will be instrumental in shaping the future of the business in New Zealand. In his new role, he will continue to lead the commercial team and will also take on broader responsibilities for the sustainable growth of the local business.

Darren Fullerton, CEO Frucor Suntory –Oceania commented “Brad’s appointment to General Manager, New Zealand is recognition of his deep commercial acumen, strategic agility, and strong leadership. Having served as Sales Director – New Zealand for nearly four years, this transition is a testament to his commitment to the market and his own career within the Suntory family, where he has played an integral part since joining the business as a Territory Manager in 2006.”

2023 was a record-breaking and transformative year for Frucor Suntory, with major advances in category development, consumer-led portfolio expansion and new channel development for the Pepsi Co range. This announcement aligns with the future state of the business when the Suntory Oceania partnership with Beam Suntory comes to fruition in 2026 in New Zealand.

Commenting on his new appointment

Brad Erceg said “At its core, Frucor Suntory takes great pride in our New Zealand heritage, which can be traced back to the Apple & Pear Marketing Board and the establishment of the Fresh Up brand over sixty years ago.”

“As we embark on the next phase of growth, I look forward to collaborating with our customers and wider business to continue delivering market-leading beverage experiences to all Kiwis.”

Brad Erceg, General Manager, New Zealand.

Made in Queensland, by Queenslanders

Working alongside our production sites in New Zealand, North America, Europe and Japan, our new facility in Queensland Australia has announced that V Energy and Suntory -196 will be the first brands to be made on site at opening later this year.

Once the $400 million manufacturing and distribution facility becomes operational in mid-2024, the site will become home to 18 of Australia’s most popular ready-todrink beverages, including Canadian Club® & Dry, Jim Beam® White Label Bourbon & Cola and the entire range of V Energy drinks. Suntory Oceania RTDs will be made on site in Queensland, by Queenslanders.

RTD is the fastest growing liquor category, growing at 4.8 per cent in value and holding almost 20 per cent share of all liquor sales in Australia. Beam Suntory has been the number one contributor to value growth in the RTD market for the past two years with its iconic Suntory -196, after its blockbuster launch in 2021.

Darren Fullerton, CEO Frucor Suntory Oceania said “Suntory Oceania is well placed to ride the next wave of growth in our existing core markets of alcohol, non-alcohol RTDs and energy drinks. The partnership will unlock further potential and agility in the supply chain – and more strategic portfolio innovation into emerging beverage categories.

“From sunrise to sunset, our new facility will be producing beverages to suit every occasion. There is lots of excitement about the future and the opportunities we can create for the Queensland community.”

As the largest FMCG investment into Australia in the last decade, the new $400 million manufacturing and distribution facility will strengthen Suntory’s foothold in Australia with over 160 local roles contributing to the growth of South East Queensland.

Mark Hill, Managing Director for Beam Suntory Oceania said “Working alongside our production sites in New Zealand, North America, Europe and Japan, full ownership of our supply chain allows us to respond with greater agility to market needs and expand our capability and capacity. Preparation starts now to ensure the partnership is operational to go to market with our combined portfolio from mid-2025 in Australia and 2026 in New Zealand.”

The announcement of the facility’s planned production scope comes at an exciting time for the site, with construction well underway and on schedule for completion in mid-2024.

An update from Swanbank, our new manufacturing and distribution facility

Pictured: Lachlan McIntyre with the portfolio of beverages to be #MadeInQueensland

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 – Rodney Marston rodney.marston@frucorsuntory.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 – Holly Fairclough holly.fairclough@frucorsuntory.com

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

Lower South Island BDM – Georgie Thornton georgie.thornton@frucorsuntory.com