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june 2012 Volume 18 No 5 $9.15
THE BUSINESS OF MANUFACTURING • LOGISTICS • SUPERMARKETING
fmcg . co . n z
foo d ne w s . co . n z
TURNING SHOPPERS INTO BUYERS
Phil Neely General Manager 021 302 459 John Buchanan Sale
es Manager 021 302 784
A GOOD HONEST
LAUNCH FOR WHITTAKERS
Whittaker’s is an iconic Kiwi brand that provided Hypermedia with a choice assignment – to launch their all-new Berry & Biscuit chocolate into a highly competitive market. It is characterised by a proliferation of product variants, each with its own loyal customers. We needed to grab attention, give shoppers a compelling reason to sample new Berry & Biscuit, and reinforce the Whittaker’s brand values consumers hold so dear. So we split-tested the Auckland market, using 10 trial stores and 10 Control stores. ‘In zone’ media vividly signposted the product and engaged shoppers’ imagination – so they could taste Berries & Biscuit in their mind, right in the aisle. The chocolate virtually sold itself. In stores with the Hypermedia installations versus regular control stores: SUCCESS Ť more units sold Ť higher spend Ť more customers purchased Whittakers Berry & Biscuit.
on the outside...
quality on the inside.
Ingham ‘new’ red box and bag range are brilliantly positioned to drive profitable growth in the packaged frozen category. Brilliant freezer presence
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range‘em... your customers will Love‘em. For more information about Ingham Red Box or Bag range call Ingham’s sales department on 0508 800 785.
Editorâ€™s note Industry news Trend monitor FMCG Online
6 8 11 12
18 Sauces, Dressings, Condiments 24 Canned foods 28 Haircare
FGC CEO Katherine Rich examines a recent TV report
Welcome changes in employment law
When is food like a hotel room? Dr Peter Stevens explains
16 Fresh and local
28 Health & Beauty Aisle 31 Subscription form 32 Q&A
Rolf Hilke explains a new strategy for the Red Seal brand
36 Whatâ€™s Hot
New products in store
Spotted out and about
Your guide to upcoming industry events
OUR COVER Sunsilk is the #1 Haircare brand in New Zealand, in 2012.
Print and packaging innovations
42 Grocery business news 44 Recruitment
Keeping you up to date with packaging, IT, supply chain and logistics
Kevin Oâ€™Shannessey on being proactive
From interruption to permission and beyond
A wrap up of the recent Shopper Marketing Summit in Chicago
Convenience store and oil channel updates
Coffee to go
52 C-store industry news 53 Directory 54 Nargon
Government intensifies anti-tobacco push
Lessons from the US liquor industry
60 BWS industry news 62 Australian Reds
Value-for-money wines for winter
BIC LIGHTERS. OUR QUALITY, YOUR SAFETY.
*Source: Import Data – Australia Bureau of Statistics and New Zealand Overseas Trade Statistics December 2011 © 2012 BIC Australia Pty Ltd
e ditor ’s note Vol 18
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Keeping an eye on international trends The FMCG industry has faced substantial challenges in the last couple of years and while the market is still tough, there are now more and more positive developments emerging. New Zealand’s horticultural industry has continued to grow its exports despite difficult economic times worldwide. Horticulture accounts for 7.5% of New Zealand’s exports, with an annual value of close to $3.5 billion. NZ apples, kiwifruit and honey are still in high demand and wine is now our largest horticultural export, earning over $1 billion each year. Frucor started as a small local juice business as part of the New Zealand Apple & Pear Board in the 1960s. Since then it has grown into an international beverage company with about 820 staff and annual revenue of NZ$500 million. Frucor exports approximately NZ$250 million of beverages a year, roughly equivalent to a quarter of New Zealand’s total annual wine industry exports. It is heartening to see companies who have stood the test of time and still continue to grow. Investments in packaging, marketing and rebranding can boost growth significantly and in this issue we talk to Rolf Hilke, owner of Red Seal Natural Health, about his vision and bold new strategy for the Red Seal brand. We also look at new packaging trends, while Ash Kramer explains how permission marketing can give your campaign a new edge. The experts at ShopAbility report
from the Shopper Marketing Summit in Chicago on pg 46-48, where analyses of multichannel shopping, retail-tainment, and a more holistic approach to the path to purchase were all part of the programme. Many consumers like researching and buying online because it makes life easier. E-commerce is now approaching $200 billion in revenue in the US alone and makes up 9% of total retail sales (up from 5% five years ago). The mobile commerce market in Singapore skyrocketed by 660 percent between 2010 and 2011, fuelled by a rise in mobile shoppers and increase in per capita spend. Smartphones are poised to play an integral part in our shopping and marketing landscape and there are many other exciting retail technologies on the horizon. FMCG’s new trend monitor on pg 11 is designed to highlight game-changing innovations from all over the world. In Australia, Woolworths has just been recognised as the ‘greenest’ supermarket chain, with its initiatives for zero food waste from its stores. More than 2200 tonnes of food are being rescued for charities, and nearly 5000 tonnes of food waste is going to earth power programmes.Woolworths is also aiming for a 40 percent carbon reduction by 2015. Sustainable business strategies are increasingly important and can’t be ignored. They are more than just a trend. I’m off to Europe and Asia in June and will look out for more innovations and news to report . . . watch this space!
© 2012 Mediaweb Limited. ISSN: 1175-8279 (Print), 1179-8718 (Online).
Tamara Rubanowski firstname.lastname@example.org Official b2b magazine for the Gluten Free Food & Allergy Shows. Media partner Nargon Supplier Awards. Media partner Fine Food NZ 2012.
CEOS KNOW GLASS BUILDS POWERFUL BRANDS. “Consumers like to see what they’re getting,” says Edson Auricchio, CEO of OLÉ Foods. “We package quality foods, and glass demonstrates that quality, quite literally. Seeing is believing. I would say that glass is more than packaging for us, it’s a form of advertising.” GlassIsLife.com makers of strong, bold, clearly different glass packaging
© Owens-Illinois, Inc. A gus Aug ust sstt 10 10525 1 052 525 525 25.1. 1.1 1.2 22
news Fonterra announces new management and teams up with Richie McCaw Fonterra CEO Theo Spierings has announced members of his senior management team as part of a reshaping of the organisation to deliver on its Group Strategy Refresh. Most of the 12 new management roles have been filled by internal appointments. Spierings commented: “With our refreshed group strategy confirmed, we have now aligned our business to deliver on our strategic priorities. “The new structure and senior appointments reflect our focus on dairy nutrition and emerging markets, as well as our intention to reduce layers and duplication to drive efficiencies across the business.” Fonterra has formed new business divisions to grow emerging markets in China/India and Latin America, as well as a new global Fonterra Nutrition business to build the nutrition portfolio across the business, driven by innovation. “These changes, along with re-configuration of existing business units and the support functions within the company, will position us to increase volumes and value in line with our strategy,” Spierings said. The new Fonterra management team comprises: • Chief financial officer, Jonathan Mason • Managing director group optimisation and supply chain, Ian Palliser • Group general manager strategy, Maury Leyland • Group general manager mergers and acquisitions, Paul Campbell • Managing director co-operative affairs, Todd Muller • Managing director people, culture and services. Position to be confirmed. • Managing director New Zealand Milk, Gary Romano
Fonterra ambassador Richie McCaw with Theo Spierings.
• Managing director Australia New Zealand, John Doumani • Managing director ASEAN/Middle East/North Africa, Mark Wilson • Managing director China/India, Kelvin Wickham • Managing director Latin America, Alex Turnbull • Managing director Fonterra Nutrition, Sarah Kennedy. Spierings said the new organisation structure would take full effect from the start of the financial year on August 1, 2012. Fonterra is also teaming up with New Zealand rugby team captain Richie McCaw as an ambassador to help build pride among New Zealanders for the dairy co-operative. Richie McCaw said he was excited to be working with Fonterra. “Fonterra is a great New Zealand company, doing terrific stuff out there in the world and bringing the returns back here, which is good news for all New Zealanders,” McCaw said. “Coming from a rural background, I can appreciate Fonterra’s coop spirit, and the way they’re getting in behind the community with programmes like Milk for Schools, and other good ideas in the pipeline.” l
Battle of the butchers begins Young butchers across the country have begun sharpening their knives in anticipation of the 2012 Alto Young Butcher and Retail Meat Industry Training Organisation (RMITO) Butcher Apprentice of the Year competition. Current RMITO Butcher Apprentice of the Year Abigail Smith has her sights set on the Young Butcher title after her success in the apprentice category last year. “Last year’s win set the standard for me and only makes me eager to push myself to the limit this year and take home the big title,” says Smith. Entries are now open to the competition, which kicks off with a series of regional heats across New Zealand over the month of July. The winners of each regional will go on to compete in the Grand Final, to be held on 24 August at the Viaduct Event Centre in Auckland.
FMCG june 2012
During the Grand Final, the young butchers will be put through a practical exam, interview, cutting test and mystery on-stage element to determine Current RMITO Butcher Apprentice who will walk away with of the Year Abigail Smith. the prestigious title, and the prize of a study tour to Europe. The RMITO Butcher Apprentice of the Year will win a study tour to Australia. The competition is proudly supported by Alto, RMITO, Beef + Lamb New Zealand, Dunninghams, Hellers, Kerry Ingredients, NZ Pork, Wilson Hellaby, Cabernet Foods, Natural Farm and Tegel Foods. l
n ews FMCG companies race for charity
The Nestlé Chokito team (back row: Kelly O’Donnell, Andrew Hardie, Kate McIvor, Stephen Rainey, Jeremy Boucher, Cameron Brodie. Front: Helen Ye, Amy Lendrum)
Three FMCG companies have helped raise $100,000 for Cure Kids, the charity that funds research into children’s lifethreatening illnesses. Cadbury, Arnott’s and Nestlé all encouraged their staff to fundraise and take part in the Great Adventure Race to Cure Kids recently. The companies made up six of the 31 teams in the event that saw them running, biking and navigating their way through 40kms of the Hunua Ranges. Nestlé’s Chokito was the first FMCG team across the finish line, with a time of seven hours and 55 minutes, followed by their colleagues, the Nimble Nestea Nutters and the Arnott’s team. Cadbury ranked second overall in the fundraising stakes with $46,000 for its two teams. Arnotts raised $32,000 and Nestlé raised $23,600. Each team was awarded its finish-line medals by Cure Kids child ambassadors, children who live with life-threatening illnesses. In its ninth year, the Great Adventure Race raised in excess of $400,000 for Cure Kids; the highest total in recent years. The charity aims to invest 100 percent of public donations into child health research and this year added a $1m pledge over five years to each of its three Professorial Chairs of Child Health, top-of-their-field research roles funded in perpetuity. “This year saw the inaugural IT Cup and we would love to coincide our tenth anniversary with an FMCG Cup next year, with grocery companies adding a little extra competition to the event by competing against each other for top fundraiser and the fastest team in the industry,” said a Cure Kids’ spokesperson. l
Arnott’s account director Stephen Morriss in the Hunua ranges.
Free* industry briefing
Crowne Plaza Auckland 25 July, 7.30am
Global trends: Retailing and Shopper Marketing Hear what’s hot around the world and get the lowdown on the USA Shopper Marketing Summit. Learn about best practice retailing in: Tokyo, New York, London, Paris, Milan. Don’t miss this opportunity to hear from industry leaders Peter Huskins and Alison Sinclair of ShopAbility, fresh from overseas touring. Feel free to call Annette Piercy (ShopAbility NZ) on 027 300 8010 for more information.
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june 2012 FMCG
news NZ Fairtrade sales exceed $45 million Estimated retail sales of Fairtrade certified products last year rose in New Zealand by an impressive 24% on the previous year to $45.4 million, according to newly released data. Coffee remains the biggest selling Fairtrade product with sales of $25.3m (up from $18m in 2010); Chocolate is the second biggest with sales of $17.1m and Fairtrade bananas take a bigger share of the market with sales of $2.4m. Tea accounts for sales of $400,000 and other products sold included sugar, cotton clothing, and sports balls. The figures were released as the country geared up for Fair Trade Fortnight (5-20 May) with a ‘Choose Fair’ theme. “Once again New Zealand consumers continue to show just how fair they are in their desire to help give a fair deal to the growers of the products we can’t produce here, like coffee, tea, cocoa and bananas,” said Stephen Knapp,
Fairtrade ANZ CEO. Consumers have been enjoying new Fairtrade products recently, such as flavoured teas and the world’s first Fairtrade certified ice block range. “Consistently and even in times of economic downturn we’re spending more on these products Stephen Knapp, and helping those in developing Fairtrade ANZ CEO. countries, who feel the pinch in recession even more than we do. Kiwis love to buy local but when they can’t they’re making an important ethical choice to choose Fairtrade, and the effect on communities in places like Africa, Latin America and the Pacific is significant,” says Knapp. To make it even easier for consumers to find what they’re looking for the ‘Find Fairtrade’ facility has been launched on fairtrade.org.nz. Consumers can help keep this database updated in order to share details on product availability. l
Trader Jacks opens in Hamilton The owners of fresh food markets Farro, Janene and James Draper have launched a new subsidiary brand: Trader Jacks. The Drapers have been investigating for the past two years an additional store model to supplement their very successful Farro Fresh stores and opened the first Trader Jacks at Te Awa The Base in Hamilton in May. Trader Jacks will have all the basic ingredients required to cook a meal with some of Farro’s best-selling lines. “The product range will be quality and value driven but will attract customers who traditionally may not have previously visited a Farro store,” said James Draper. The opening of the store in Hamilton will replace the existing Farro. “We have had Trader Jacks in planning mode for some time and believe the opportunity in Hamilton meets all the criteria we have identified as an ideal demographic for the launch of this new brand,” he says. The international trend is for growth of limited assortment supermarkets with 1000 to 1500 square metre footprints that carry fewer lines, with no frills service and presentation of the
FMCG june 2012
best products, at very competitive prices. “That is exactly what Trader Jacks will bring to the main grocery shopper,” said Draper. He said that it is intended to roll out more “Trader Jacks” in provincial and regional locations throughout New Zealand. He added that the experience with Farro in Hamilton demonstrated that the Hamilton market was ideal for the launch of Trader Jacks, and the footprint of the Farro store was ideal for the new concept. “We look forward to bringing this new retail food concept to the New Zealand market, and giving customers the best value products, at competitive prices. That is what Trader Jacks is all about.” He added that there was no similar offering in the current market place and the gap would be filled by Trader Jacks. Buying direct and in bulk from suppliers means shoppers get the very best prices. To round off the shopping experience and save time Trader Jacks will stock a range of homewares and basic cleaning products.l
TREND MONITOR A snapshot of new trends in overseas markets. Degradable sandwich bags Hercules has recently launched the first degradable, resealable plastic sandwich bag in Australia. The sandwich bags are designed to break down faster in the environment than conventional bags. Hercules is owned by International Consolidated Business (ICB).
Raw milk products Food Safety Australia New Zealand (FSANZ) has approved a proposal recommending permission be given for the sale in Australia of raw milk hard to very hard cooked curd cheeses.
Personalised customer service US luxury department store operator Neiman Marcus is testing a new iPhone app to help enhance the relationship between its staff and shoppers. Users of the app can find out which sales staff are on duty. Also, when a customer checks into a store, staff can access information about the shopper’s buying history. The technology was developed by Signature Labs in San Francisco.
Facial recognition billboards Streets launched Australia’s first outdoor facial recognition billboard for Magnum Infinity. The billboard was on display in Sydney, Melbourne and Brisbane in May, using a camera with facial recognition technology that provides the user with instructions via a three-step screensaver. After smiling to activate, the user begins to bite the Magnum Infinity on the billboard. With each attempt at biting, the camera in the billboard registers the user’s mouth movements and imitates it by biting the ice cream that is on the screen. Users can also smile for their photo to be uploaded on to the Streets Magnum Facebook page.
Country of origin labelling FSANZ has approved a proposal to extend country of origin labelling to unpackaged beef, sheep and chicken.
Measuring foot traffic German health & beauty specialist Douglas has implemented new video technology to count the number of visitors to its stores.
The future of shopping in the palm of your hand In Feneberg supermarkets in Germany, new hand-held scanners by Motorola allow shoppers to save time by scanning and packing groceries as they shop. Mobile self-scanning is on the rise. A new generation of game-changing technology has also prompted leading retailers such as Carrefour, Ahold and Delhaize Group to introduce self-scanning options in stores.
june 2012 FMCG
fmcg.co.nz FMCG has a few web exclusive features to get you clicking.
Security With New Zealand retailers losing millions of dollars every year due to security breaches, the search for the right technology to combat this problem continues. Industry experts highlight innovations and the latest trends on fmcg.co.nz.
2012 Steak of Origin competition Who were the finalists and award winners this year? Find out online, where Ashley Gray reports on the culmination of a decade of recognising and rewarding NZ beef producers, beef retailers and beef brands.
Outsourcing Why is outsourcing of critical services increasingly appealing to organisations of all sizes? Grant Leach, managing director at Crossmark, explains it all online.
An extensive archive of previous issues of FMCG you may have missed as well as news, category reports and more.
New products On our website fmcg.co.nz, Mark Gavin and the team at law firm Hudson Gavin Martin share legal watch-outs when “stretching” your brand.
From Air Wick’s innovative Multi Colour Candle range to new beverages and vegetarian offerings – take a sneak peek at some of the latest product launches online.
Not a fair go Katherine Rich examines a recent TV report. The olive oil producing countries of the Mediterranean guard their reputations very jealously. Probably about as jealously as New Zealand guards its dairying reputation.To an olive oil producer in Spain, Italy, or Greece, the subject of extra virgin olive oil and how it is produced is as important as the quality of milk powder or cheese is to Fonterra. The stringent production methods and quality controls the large corporate oil producers have developed down the generations are nothing short of obsessive.They have to be because, for many regions in those countries, olive oil is the lifeblood of their economies.Without it they don’t survive. Over the past few years the Food & Grocery Council has been involved on behalf of members in defending unwarranted attacks on the standard of olive oil imported from the Mediterranean. Recently, Fair Go did a report on olive oil, and sent samples of imported and locally produced oils to an Australian lab for chemical testing and to a sensory (tasting) panel in New Zealand. But neither of them were accredited by the International Olive Council (IOC) to carry out the official tests against the international standard for olive oil. Not surprisingly, these unofficial tests, which did not follow the IOC protocol, returned the classic “local great, imports bad” result. Though the samples on the whole passed all the chemical tests, the negative results on sensory testing were probably because local tasters tend to identify local New Zealand oils more readily. This is not a criticism, but there is a tendency for local industries to champion their own styles, whatever the country might be. This is why international testing standards are so important – so regional biases and preferences can be removed and all oils can be tested fairly against an internationally agreed standard. The IOC standard, which governs the trade in olive oil and sets quality standards designed to ensure authenticity and quality by testing before, during, and after production, includes 20 chemical and physical tests. If a batch does not comply, it cannot be exported. The misleading results of Fair Go’s tests were used to cast aspersions on the quality Spanish, Greek, and Italian oils imported to New Zealand by some of our most respected local companies – family companies which have imported oil from the same suppliers for generations. Somewhat ironically, these are the same companies which introduced Kiwis to olive oil decades ago, before our local industry was even a pipedream. Local olive oil politics can sometimes make Parliament look like a cakewalk, but it’s important to check a few facts. Though various media have tried to create the impression there is a national “scandal” regarding olive
oil quality, the remarkable thing is that our Katherine Rich, CEO, members cannot recall any complaints about NZ Food & Grocery Council. their products, either to them or to regulatory Email: Katherine.firstname.lastname@example.org bodies, and nor has their oil ever failed a chemical test. NZ companies such as James Crisp and William Aitken & Co are proud of what they do and they take their reputations very seriously. They stand behind the quality of their oils and the supply chains that deliver them to Kiwi shoppers. On the uneven playing field of Fair Go’s tests, the imported oils were never going to pass sensory tests set against a background of New Zealand oils. Comparing oil grown in different climates and in different styles is not comparing like with like. Imported oil doesn’t pretend to be gourmet oil from boutique producers. It’s mainstream supermarket oil at a great price. Different taste profiles are not a surprise. As with wine, because of regional differences it’s going to taste differently to anything produced locally, and it comes down to personal preference. An avid red wine drinker might prefer Otago Pinots and dislike Bordeaux, but that doesn’t mean one country’s wine is better or worse – just different. FGC has members that sell both local and imported oils, but for a fair comparison, like must be set against like, and an internationally agreed standard allows that. Fair Go’s approach was anything but fair. FGC is not sure what Fair Go were trying to achieve, but giving them the benefit of the doubt they would have believed their testing was going to be objective and done by IOC-accredited labs and tasters.The opposite was true. In the end, they produced results that bagged honest importers. FGC goes to great lengths to satisfy itself that members’ products are as good as they can be. We champion all companies which know that if you put something on the front of a product then it has to be correct and we believe that is the case here. As FGC told Fair Go, if shoppers think there is something wrong with the oil they’ve bought, they can take it back to the supermarket.
w w w. f g c . o r g . n z june 2012 FMCG
n a rgo n
Welcome changes in employment law Trina Snow, executive director, NARGON.
Trina Snow hopes that new legislation will be passed soon.
The National-led Government is continuing to reform New Zealand’s employment law in order to encourage employers to take on more staff and to reduce unnecessary compliance and confusion. NARGON is broadly supportive of these initiatives because supermarkets and grocery stores are significant employers, particularly of young workers and those with little or no previous work experience. One of the key policies National promised at the 2011 election was a new ‘Starting Out Wage’. Minister of Labour Hon Kate Wilkinson told NARGON that “the retail sector, and supermarkets especially, employ a large number of youth workers. The Starting Out Wage will be an added incentive to give more young people a chance at work. It will give some of our youngest and most inexperienced workers valuable experience and a much needed foot in the door.” It will be set at 80 percent of the adult minimum wage and three groups of young people will be eligible: • 16- and 17-year-olds in their first six months of work with a new employer • 18- and 19-year-olds entering the workforce after more than six months on a benefit • 16- to 19-year-old workers training in a recognised industry course involving at least 40 credits a year. NARGON has welcomed the Government’s belated recognition that the abolition of the Youth Minimum Wage has seen thousands of young people lose the opportunity to work. The Starting Out Wage, while not perfect, is definitely a step in the right direction. Hopefully the Government will treat it as a priority and the legislation is passed quickly. National had hinted the policy would come into force this year but the months are quickly slipping by. Although controversial at the time, the 90-day trial employment period is proving to be a valuable
FMCG june 2012
initiative. There have been a number of legal cases, which have clarified the law and debunked many of the myths around the issue. Sarah Townsend, a member of Duncan Cotterill’s specialist employment law team, has written: “A common misconception is that trial periods effectively extinguish all of an employee’s legal rights for the first 90 days of employment. When it appears the employee’s performance or attitude is not meeting requirements, there is still an obligation to address this during the trial period. An employer who takes no steps to deal with performance shortcomings during a trial period, and dismisses an employee on the 89th day of the trial period, may well face claims of unjustified disadvantage and breach of the duty of good faith. “As part of this duty of good faith, the court has also said that an employer should, if asked, provide an explanation or reasons for the dismissal, to the employee. This is because an employee should not be deprived of the ability to learn from an unsuccessful trial period, even though the employee has a limited ability to challenge that.” NARGON notes that New Zealand was one of the very last OECD countries to introduce an employment trial period. The policy has helped give stores confidence to take a risk and employ people – generally young and/or inexperienced – who would otherwise struggle to find employment. Given the success of 90-day trials, NARGON would encourage all political parties to support the policy going forward and perhaps even look to extend it. Finally, Parliament has narrowly passed a new law which would require a secret ballot on any decision to begin a strike. Tau Henare from National introduced the private member’s bill which proved surprisingly controversial. His stated intent was to remove the possibility of intimidation by employers or unions through a secret ballot. Labour argued that most unions already used secret ballots and that the proposal was “harmless”, but they still opposed the law. They were joined by the Greens, New Zealand First, the Maori Party and Mana, but the bill passed by a single vote. It is hard to believe that a law requiring a secret ballot on an important decision like striking would almost fail to pass in 2012.
When is food like a hotel room? Dr Peter Stevens explains.
Dr Peter Stevens, CEO, GS1. Email: email@example.com.
entrepreneurs who see money in the proHave you ever thought what it must be like to run a vision of information about FMCG brand motel or hotel these days? On top of the normal stuff owners’ products by catering for consumer you must do in the physical world – welcome guests, needs (comparison shopping, allergy informaservice rooms, cook etc, the one thing hotel owners tion, country of origin, nutritional information, claims know is that they must appear ‘looking their best’ in such as organic and gluten free). the virtual world. And guess what? These entrepreneurs are increasingTravel information was one of the first industries to ly coming to brand owners with requests for product be impacted by the internet and these days accommoinformation. Worse, some popular apps are seeking to dation providers’ listings (with pictures, facility inforcharge brand owners for the privilege of having their mation, deals, availability and, increasingly, customer product information available in the app. ratings) must be available to be found everywhere Sound familiar? Brand owners and retailers alike have where the eyeballs of tourists are. And this does not a vested interest in getting authoritative information mean having a website, it means ensuring that informaout to wherever it is needed – in a manageable way. tion about your property is on all the search engines, Let’s hope that the industry can work out a scalable global booking networks (Expedia, Bookings.com) and way to do this before we all get drowned in rubbish even the latest ‘day deal’ sites. information. Many accommodation providers simply outsource Make sense? If so, check out: http://www.gs1nz.org/ this information provision task to intermediaries who news.php?news_id=173. specialise in lodging listings. But accommodation providers know that it is a constant battle to ensure that all the information about your property is up-to-date and accurate. There is nothing more Make ac to dread than having a tourist cu availabl rate produc t e to co nsumer information turning up after a long flight s in the digital If consumers can’t find your world 4 851 with a confirmed online bookproduct on the shelf, you’ve lost a 2 34 5 61234 sale. It’s the same on the internet. ing when you are full house! With th In many ways, those in the e GS1 Tr usted So urce of Data w e are en FMCG world have been someabling brand ow ners to : what immune from the internet ‘winds of change’. Many retailers have not even taken internet E-commerce is now approaching $200 billion in revenue shopping seriously enough to Share yo have full catalogues of product ur data Smartphones are being adopted at a staggering rate. that co nsumer locally so s can ac cess it online, and many brand owners globally ! are seemingly oblivious to the The digital path to purchase is the norm. rising tide of information about their products available online. Certainly much of the informaInaccurate product information is a critical issue. “Some pe tion about brand owners’ prodople pref agree th er Pepsi… at GS1 is critical to others prefer Co ucts comes from questionable ke… bu winning t the trus t of cons both of our com umers in panies sources and much information the digi tal world .” High quality product information drives sales. is just plain wrong. But no more. The use of mobile phone apps has spawned an ecosystem of in the US alone and makes up 9% of total retail sales (up from 5% five years ago). Consumers like researching and buying online because it makes their lives easier.
In most developed markets, over 30% of consumers have a smartphone in their pockets while they are shopping and engaging with products. Smartphones are accelerating e-commerce growth even further. In 2011, Amazon hit $2 billion in mobile sales – up from $1 billion in 2010. In 2011, eBay mobile commerce generated $5 billion in sales; in 2012 it expects this figure to be $8 billion.
In a multichannel world, consumers are increasingly involving websites, blogs, social networks and apps in their path to purchase. Forrester estimates that 50% of all retail sales are web-influenced. IBM states that 80% of consumers use social networks to research new products. Brand and retailer apps contain good quality information, but third-party apps are where consumers spend most time.
Bar-code scanning is one easy way for consumers to get more information about products. Just one app provider, Scanbuy, measured over 20 million consumer scans in 2011 – a 440% increase versus 2010. Research by GS1 into three major third-party apps shows that correct product information is only available in 9% of cases. Consumer research by GS1 shows that nearly 40% of shoppers said they would not buy a product if they did not trust the accuracy of the digital informationthese might be your lost sales.
Accurate product data is vital to the apps providing visibility to your brands in the digital world. From online grocery shopping to social media sharing, from digital coupons to consumer reviews. Without accurate product data you are either invisible or, worse, eroding consumer trust.
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june 2012 FMCG
FRESH & LOCAL Specialist resource writer John Clarke highlights developments in produce, fish and meat supply.
PRIME It may be winter but we have plenty of New Zealand fruit to choose from: tamarillos, persimmons, lemons and mandarins. And it is now time for the best of the roots: yams, parsnip, nice main crop spuds, and excellent fennel bulb and celeriac. Kahawai, piper, tuna and Pacific oysters are at their best, as of course are Bluff oysters. And don’t forget rhubarb over winter.
SHOT TO BITS Our apricots, nectarines and peaches are finished, as are New Zealand strawberries and passion fruit. New Zealand grown beans have finished and good New Zealand tomatoes are in short supply.
FMCG FEBRUARY 2012
FISH It is worth remembering that all our New Zealand fish are effectively organic and it may be worth reminding your health-conscious customers of this. Blue cod Now that the albacore season is about over, many of these fishermen are working the blue cod fishery, so the Auckland market may even see some if you guys down south relax your exclusive claim to it. Blue cod has beautifully flavoured, delicate white flesh and the further south they are caught the better for my money. The southern blue cod season is full on and this is a beautiful fish to have on offer and very popular. Blue Moki The season for this beautiful fish will have started by about the time you receive this issue. Hoki This is our largest commercial fishery and June sees the beginning of the annual hoki harvest. So if for some reason your customers just happen to be hanging out for a fresh piece of hoki, this is your opportunity. Ling The fresh season for ling starts in June and will run until November. The frozen and smoked product is also available. Orange roughy is not at all ‘PC’ these days. There has been some controversy around these 125-year-old fish and deep sea trawlers, but there are customers who still think it’s a great tasting fish and you will soon be able to sell them some. The fresh roughy season is not far away. Piper This is the best time for this forgotten delectable little fish. Red cod Must have mothers so someone can love them. If you come across English or British cod it is just red cod – and another name for cray-pot bait in my opinion. Salmon, quinnat (sea cage) Plenty available and all three producers have good quality fish. Sharks Still a good time for doggies (rig, spotted dogfish etc) and school sharks, and they are all great eating.
Sole The major catch is over and from now on it will be by-catch stuff. Supply is still restricted in the North Island as this is mainly a southern fish, but it is a much under-utilised, premium fish at a relatively low price. Trevally This fantastic common fish is usually well priced. The main season is over so there is less in the market. But the trevally you will find in the market will be of significantly better quality as these fish at this time of year are caught using ring nets around inshore reefs. Fresher, less ‘squashed’ and tastier. Warehou is another southern species available in winter and usually well priced.
MEAT Still good news on the red meat front but with the New Zealand dollar losing value don’t hold your breath. Local trade beef schedule prices are still falling and at present the lamb schedule keeps falling also. Venison prices are steady. Bacon and Ham The 100% New Zealand Bacon & Ham Competition is about to kick off again this month with best bacon results to be announced July 22 and best hams in late October. The judges got it pretty right last year with two great Christchurch butcheries, Ashby’s and Cashmere Cuisine, taking top honours.
FRUIT Apples All the New Zealand seasonal apples are still good quality so we don’t
need any imported rubbish just yet. Avocados Lots of good quality, wellpriced Hass fruit have been enjoyed by all. Watch the quality from now on. Citrus New Zealand limes have been in the market for a wee while and our lemons will be around from now on. New Zealand mandarins are in now. All other local citrus will start to come on towards the end of this period too. Feijoas The season has been better than last yearâ€™s and there will be good volumes for this month. Kiwifruit Vine Health (KVH) released a report in May on the impact of the vine-killing disease, Psa-V, which confirms the significant setback the disease has dealt to the kiwifruit industry and the wider communities which rely on it. The report estimates that over the next five years Psa-V will cost the industry between $310-$410 million in terms of the immediate impact of the disease and the cost of responding to it. In the long term it is estimated the disease will cost the industry between $740-$885 million in terms of lost development. It is also estimated the disease will result in the loss of up to 470 jobs a year. But the main crop New Zealand fresh fruit is away and despite the desperate situation for growers due to the devastating virus there are good supplies to the FMCG sector.
Pears There will be a pear or two about but they are deteriorating from now on. The nashi hold on a little longer. Imports are starting though. Persimmons This is another good early winter fruit. They finish in July but are good keepers, so they will be around for a while. Tamarillos are back in stock. Chestnuts are in season now for that something a little different â€“ a good mover these days. See, there is lots of great New Zealand fruit over winter!
VEGETABLES Traditionally itâ€™s comfort food time and all the warming winter vegetables are coming on. Jerusalem artichokes are about to arrive in the market place so now is the time to keep an eye out for this underutilised vegetable. Brussels sprouts are at their best from now on. Capsicum Almost all the New Zealand grown varieties have gone and those you see will be mostly reds, hothouse grown (usually hydroponic), and at a price, but plenty of Aussie and Island stuff on the way. Carrots are always available and are quite nice this time of year. Choko This handy
early winter vegetable receives flavours very well. It will only be around, straight off the vine, until the beginning of July. But it keeps well so you will still be able to get it until mid August or so. Fennel bulb is these days very popular and this is the season for this vegetable. Kohlrabi is available all year now, but this is the main season, the price is right and it is in pretty good nick at this time of year. Leeks are at their best. Onions Good supplies of Jumbos with few New Zealand red onions around, so you may need to buy the Californian ones soon. Parsnip was history, now contemporary. Potatoes Lots of good quality main crop potatoes all over the place and plenty of variety too. Swede and turnip from now on is your time for these vegetables. Yams Now we can have this great little vegetable for a few months. And see, there are also lots of great New Zealand vegetables available over winter!
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Pass the sauce!
Sauces, dressings and condiments are routine purchases for most consumers these days. FMCG talked to some of the stakeholders in these categories to find out what’s new and popular.
oodman Fielder has both Edmonds and Paul Newman’s Own competing within the Salad Dressing and Mayonnaise category. Edmonds is one of New Zealand’s most iconic brands and has been loved by New Zealand consumers since the 1880s, says brand manager Rachel Olsen. She says: “Edmonds is synonymous with Kiwi baking and cooking and the entry into the Salad Dressing category in 2008 has continued to perform well. We have seen substantial growth over the last year with the Edmonds Salad Dressings range, which has increased 18.8% vs YA (TKA Unit Growth, MAT 22/04/12) and the Edmonds Mayonnaise range, which has increased 34.4% vs YA (TKA Unit Growth, MAT 22/04/12)*. The entry into the salad dressing category was a big step forward for this iconic brand and it is performing well due to its traditional home made taste and versatility.” Olsen explains: “The Paul Newman’s Own range has a 59% unit share of the Premium Salad Dressing segment (TKA, MAT 22/04/12).” The philosophy of the Paul Newman’s Own range is simple – make products that taste great using only the finest ingredients and strictly no artificial colours or flavours. Newman’s Own Foundation donated more than $400,000 to New Zealand charities in 2011. In response to the 18
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devastating Christchurch earthquakes and the Pike River Mine disaster, the Foundation donated over half of this funding to special disaster relief projects. The remainder of the funding was donated to charities for special projects including children with disabilities, counselling services for young women, therapy for children with autism, aged care services and holiday camps for children with cancer. “The 2011 funding brought the total amount donated to NZ charities by Newman’s Own Foundation to more than $1.58m. The charity component is a fantastic point of difference for the Paul Newman’s Own brand and one that we are proud of,” says Olsen. *Aztec Data
Nestlé Richard Brown, category manager Foods at Nestlé New Zealand says: “Total Sauces is worth $4.1m* and the Maggi range is a leading player with 56% of the total segment*. Current Maggi contribution is $2.3m* value sales.” Sauces remain popular with 377,600 New Zealand households shopping this category, buying approximately two products on every shopping visit and doing this on average 3-4 times per year**. And for most shoppers, sauces make the shopping list, due to being a strongly planned routine purchase with just over two thirds planning and buying routinely***.
s a u ces, dressi ngs, condi men ts With Maggi being a major player in this space, the range includes a sauce for most occasions.The current Maggi range includes variants such as Cheese, Tasty Cheese (including a gluten free offering), Creamy White, Hollandaise, Cheese & Garlic, Cheese & Onion, Parsley and Cracked Pepper. “While there are lots of flavours to choose from, Kiwis still love cheese sauce and continue to select this as their most preferred flavour,” says Brown. In terms of the Top 10 ranked sauces, seven of them contain cheese, with Maggi having five of these variants*. “The biggest Maggi sauce variant is Tasty Cheese (Single/Value Pack) and when standard Cheese is added (Single/Value Pack), the flavour contributes to over 50% of total Maggi sauce sales.” Of note, the Maggi team also recently re-introduced Maggi Seasoning to the market and now has a presence in the Asian Sauce category. A household staple in many countries around the world, Maggi Seasoning is readily identifiable to most consumers by the distinct shaped bottle. With multiple uses, it can be used as a flavour enhancer for fried rice, stir fries, casseroles, noodles, soup and also as a finisher. Nestlé also brings the well known condiment, Branston Pickle, to our supermarket shelves.With a loyal consumer base, this generates an additional $350,000 to the condiments category, says Brown. * Nielsen ScanTrack Total Supermarket MAT Data to 25 March 2012. ** Nielsen Homescan MAT Data to 25 March 2012. *** NZ Shopper Answers Research – November 2007.
High Mark Established 45 years ago, High Mark was inspired by the authentic Asian cooking that the founding family enjoyed for many generations. High Mark wants New Zealanders to enjoy flavourful, convenient and affordable meals made with authentic Asian products manufactured right
here in New Zealand. High Mark is well known for its range of fantastic soy sauces, which it produces in its Auckland factory. “High Mark maintains its position as the number one range of soy sauces with 33% Dollar Share of the Soy Sauce segment (TKA, MAT 15/04/12, Aztec),” says Wendy Northin, key account manager at James Crisp. James Crisp are agents for High Mark. The soy sauces are available in two retail sizes (300ml and 550ml) and three flavours: Golden, Dark and Reduced Salt. In the last 12 months High Mark has launched its Japanese Soy Sauce, made from an authentic Japanese recipe, which is perfect as a dipping sauce for sushi and sashimi. “As New Zealanders become more adventurous in the Asian meals they cook at home, High Mark sees growth in the more ethnic styles of soy sauce. Naturally Brewed Soy Sauce is another area of growth,” says Northin.
Tatua Tatua has a strong presence in the chillers of New Zealand supermarkets, with both the Tatua Dairy Whip and Tatua brands. Products in the Tatua range include sour cream, mascarpone and crème fraiche, all packaged in convenient 200g pouches. The Tatua Dairy Whip range includes Whipped Cream, Light Whipped Cream and Chocolate Dessert Topping. Since omitting Tatua Farms Cheese Sauce from Tatua’s range in 2011, Tatua has had an overwhelming response from consumers asking for this product, says Paula Hamer, marketing coordinator. In response to this, Tatua plans to launch a new 200g Cheese Sauce in a pouch in late 2012. Smooth and creamy in texture, it will have a distinct tasty cheddar flavour and will be the ideal accompaniment to steamed
THE BREAKDOWN Current MAT to 22 April 2012 Total Condiments: $63.963m Value % Chg vs YA 4.8 T. Dip Mixes: $40,756 Value % Chg vs YA 52.2 T. Flavourings & Bouillons: $23.388m Value % Chg vs YA 4.7 T. Gravy Mixes: $16.523m Value % Chg vs YA 0.3 T. Meat & Fish Pastes: $731,214 Value % Chg vs YA -4.1 T. Meat Extracts & Stocks: $19.122m Value % Chg vs YA 13.1 T. Sauce Mixes: $4.159m Value % Chg vs YA -7.9 Total Cooking and Simmer Sauces: $75.269m Value % Chg vs YA 4.0 T. Asian Simmer Sauce: $21.429m Value % Chg vs YA 8.2 T. Other Simmer Sauce: $6.923m Value % Chg vs YA -0.2 T. Pasta Simmer Sauce: $34.982m Value % Chg vs YA 2.9 T. Tomato Paste: $9.076m Value % Chg vs YA 5.3 T. Tomato Puree: $2.859m Value % Chg vs YA -5.2 Total Chilled Convenience Foods: $123.103m Value % Chg vs YA -0.1 T. Fresh Non Pasta Cooking Sauce: $1.350m Value % Chg vs YA 41.1 T. Fresh Pasta Sauce Excl Pesto: $7.978m Value % Chg vs YA 13.7 * Nielsen New Zealand ScanTrack (Databank)
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cate go r y c h e c k vegetables. Also handy for making quiches, dips, baking and pasta dishes. All of Tatua’s products are long-life which makes them extremely convenient – handy for keeping in the fridge for that special occasion and wastage is minimised.
Oriental Merchant The following brands are distributed by Oriental Merchant in New Zealand: • Yeo’s – Taste of South East Asia – Chilli, Curry & Satay Sauce • Mae Ploy – Authentic Thai – Sweet Thai Chilli Sauce, Thai Style Salad Dressing • ABC – Sweet Soy (Kecap Manis) & Hot Chilli Sauce • Ongs – Asian Flavours for Everyday – Oyster, Hoisin, Black Bean,Teriyaki, Stir Fry and Sweet & Sour Sauce • Poonsin Fish Sauce • Squid Brand – Fish Sauce • Bullhead – Taiwanese Barbecue Sauce • KewPie Mayonnaise – the original Japanese Mayonnaise. In the last 12 months Yeo’s Chilli sauces have been re-launched from a 375ml to a 300ml size bottle with modern pack graphics and a reduction in price.Yeos’ chilli, curry & satay sauces are not only gluten free they are also certified dairy free. ABC Sweet Soy Sauce has been extended to a range of PET bottles, which offer not only better value but also less weight for the shopper to carry home. KewPie Mayonnaise has been extended to include a 1kg size. Using the unique Kewpie squeezy bottle, the user can get the very last drop from it, as it can be rolled to a tight form. “All the new launches have been readily accepted and have enhanced their respective brands,” says Chris Hutton – general manager NZ, Oriental Merchant. Hutton adds: “Asian Cooking sauces and condiments are gaining in popularity as people are now be20
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coming more familiar with them and not buying them for a one off recipe. Programmes, such as MasterChef, are showing consumers how to use them and they become confident in adding a different flavour profile to their dish. “Asian sauces are now becoming a standard pantry item – such as ABC Sweet Soy Sauce, which has so many uses it is now referred to as an all-purpose sauce.”
Worcestershire sauces under the Boss brand. “We also produce and supply the Tuimato brand tomato sauce product throughout the country, and after the success of our BBQ product launched in 2010, we are looking at a further range extension under the Delmaine brand this summer,” says Micheal Bennett, group product manager.
FreshFields Apple Sauce
McCormick has the following products in the New Zealand market: • McCormick Slow Cookers recipe bases • McCormick Produce Partners recipe bases • McCormick Simply Seafood Batters • NEW McCormick Recipe Bases, made from 100% natural ingredients • McCormick Instant sauce mix. Derrin Johnson, marketing director, McCormick Foods Australia says,“The success of McCormick Slow Cookers has seen us introduce two new product extensions: Portuguese Chicken and Moroccan Lamb Casserole. These two new flavours have achieved the highest average sales per store, per week of all 2011 new lines introduced to Progressive (Aztec).” He adds: “The McCormick Slow Cooker range continues to enjoy rapid growth, recording over 42% incremental unit growth in the MAT to April 2012.These gains were achieved with no incremental SKUs vs YA and are evidence of increasing demand for the superior McCormick product (Aztec).” McCormick has also just launched a new range of Recipe Bases, made from all natural ingredients. This new generation of Recipe Bases is the result of considerable investment in consumer research and insights. Says Johnson, “Our research has shown that over 65%* of consumers want to see more healthy options in Recipe Bases and with this growing health awareness more consumers are reading the ingredient statements and
FreshFields Apple Sauce is manufactured by Enzafoods NZ and has had an exciting year. First, winning the “Grocers Choice Award” at the New Zealand Food Awards held in Auckland (2011), and more recently being selected as one of nine NZ products for the International Sial D’Or show in Montreal and Paris 2012. The retail judges praised the Apple Sauce pouch for its “smart portion sized packs” and said: “This product is a winner in terms of its opportunities for use.” The New Zealand Food Awards in association with Massey University identify the best food products New Zealand delivers. Enzafoods retail brand manager Robin Percy says: “Our FreshFields Apple Sauce 4 x 120gm sachet pack was launched into the NZ FMCG sector two years ago, and has been enthusiastically received by consumers who are attracted by the convenience and versatility of the single-serve pouch, the use of high quality local fruit from Hawke’s Bay and Nelson, and its additive free formulation. This is the only product of its kind on the shelves.” Recent marketing strategies has seen FreshFields Apple Sauce promoted in the butchery sections of supermarkets, as well as the grocery aisles.
Delmaine Delmaine supplies a range of quality shelf-stable sauces and jellies under the Delmaine brand, as well as mint and
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making purchase decisions based on what goes into the product. Our new Recipe Base range, made from All Natural ingredients, certainly addresses both these findings.” McCormick carefully selected and blended natural herbs and spices, then coarsely ground them to create six delicious new varieties. Each Recipe Base uses staple pantry items to help create mouth-watering dishes and does not contain any artificial flavours, colours or MSG.The varieties are: • Herb & Parmesan Crumbed Chicken • Massaman Beef Curry • Peri Peri Chicken • Beef & Garlic Stir-Fry • Sweet Cajun Chicken • Beef Kofta with Tzatziki. Johnson adds, “When this product was launched in the UK, 70%** of all gains were incremental to the category, and we’re looking to produce the same
results here, with a digital and print campaign that highlights our unique product benefit. We are also investing in a national PR campaign, sampling and off location promotions.” At a store level, consumers will certainly notice the new distinctive packaging. It is the first McCormick Recipe Base to have a clear window on the front of pack, allowing the product inside to be seen. The new Recipe Base range is carrying the global McCormick blue and red logo on the front of pack. “To reflect McCormick’s global business status, McCormick is unifying its logo in various markets and McCormick Foods Australia will slowly transition to this new logo,” says Johnson. The move towards natural ingredients is a big trend across multiple categories and McCormick believes this will be the most important category trend in the medium term. *Source: McCormick on-line research, n=293. **Source: Kantar, April 2009.
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Krispkut™ fresh dressings are ranged in Countdown supermarkets nationwide. Stephen Twinn, sales & marketing manager, Snap Fresh Foods says: “We produce 10 fresh dressings, six baby leaf salads and three seasonal salad lines (one for summer and two for winter).” Krispkut dressings contain no artificial flavours, emulsifiers or preservatives and are available in the chilled produce section. Twinn says: “We re-launched the range with a fresh new look and flavour formulation, including Mango Citrus Dressing, in October 2011. We also put QR codes on the back, taking consumers straight to a recipe featuring the purchased product. “We have six colour-coded baby salad and dressing combinations, like Cos Hearts and Classic Caesar Dressing. The range includes three delectable gourmet variants for the adventurous consumer; Japanese Style Vinaigrette, Japanese Style Sesame Dressing and Honey & Hempseed Vinaigrette.” They have progressed very well, says Twinn “despite the summer we didn’t have, with a positive uptake in sales across the range. “We’re constantly following overseas food trends, and looking for innovative ways to grow the packaged salads
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category without deviating too far from our core business – baby salads. A drizzle of dressing is an important component to enhance the flavour and texture of fresh, simple meals.We have some exciting NPD underway for summer 2012 – so watch this space. “Consumers are now looking for fresh dressings with no additives and preservatives to complement their salads. This supports the growth in salads we’re seeing as consumers are increasingly eating hot and cold salads year round. We’re using Facebook to drive this trend in New Zealand, posting simple recipes and tips that are easy to adopt by consumers, who aren’t necessarily vegetarians or health fanatics,” he says.
Wild Appettite Wild Appetite, NZ owned and operated, is represented with two brands in the local supermarkets: Wild Appetite and Urban Appetite. Peter McCracken, director, explains: “As a company we needed to provide easier access for our customers who wanted to regularly purchase the Wild Appetite brand, which up to late last year had only been available in specialty food and gift stores nationally. We were continually asked by our consumers, where else they can purchase our products. A strategic decision was made to bring the Wild Appetite
brand into the service deli section of many of the New World stores, which has enabled the company to maintain its high quality brand image in all the markets we are represented in. This then allowed the company to take the Urban Appetite brand of dressings and sauces into mainstream, along with the newly launched Urban Appetite Sauté Cooking Sauces. “The key essence of Urban Appetite is quite simple: ‘Healthy, tasty sauce creations for amazing everyday meals’. All the Urban Appetite dressings and sauces are verified gluten free, many are dairy free, and the new Sauté Cooking Sauces have been formulated to have the low salt claim. Both brands are positioned at the premium end of their respective categories, and each brand therefore has to provide that extra value to the consumer in taste and texture, and extra healthy benefits that we add into each of our products to provide that expected value in our products.” Among new launches in the last 12 months are Urban Appetite Sauté Cooking Sauces, which are ideal for Simmer and Pasta dishes. “These are full flavoured cooking sauces that add a new dimension to home cooked meals – simple, as quick as you want to make it, but most importantly they do deliver the taste expectation,” says McCracken. New flavours have been added to
the Urban Appetite dressing range including Blue Cheese Dressing, and Balsamic & Lime Glaze. “The Blue Cheese has now climbed to be our third best dressing seller,” says McCracken. He says: “Our aim is to increase the distribution points with our Urban Appetite range so consumers can find this brand in most supermarkets. Our sales have steadily grown as we increase the presence of the brands in store.” There will be some new products under the Urban Appetite brand to enter the market in time for the new spring / summer period. “There will also be continuous developments with the Wild Appetite range to ensure we keep invigorating this market for the consumer with intriguing flavours,” says McCracken.
Alexandra’s Spice Bazaar Winter cooking comes alive with Alexandra’s Spice Bazaar. Alexandra’s genuine Moroccan and Middle Eastern spice blends are brilliant for slow cookers, tajines, soups and stews. Use as a seasoning or rub for meat, ﬁsh, chicken or as a sprinkle over vegetables before roasting for delicious winter meals. Alexandra Fine Foods (2009) Limited P: 09 570 4739 E: email@example.com W: www.alexandras.co.nz
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Ultimate convenience Canned foods are essential pantry items. Convenience, value for money and innovation are the main drivers in this category. FMCG talked to some of the key suppliers in New Zealand.
any canned food products had their origins in military developed foods, designed for storage longevity and ease of preparation in the battle field. After World War II, some commercial food companies were left with surplus manufacturing facilities and began to develop new lines of canned foods designed for use in the home. Like many new product introductions, not all were successful. Canned peaches and condensed milk became convenient staples to this day, while in the US for example, cheeseburgers-in-a-can didn’t quite catch on.
Emma Foods Emma Foods has been in business since 1978. Based in Christchurch, Emma is New Zealand’s only canned mushroom producer. Meadow Mushrooms has captured the best of Mushrooms by offering a full range of canned products under the Emma brand. The range consists of: 220gm Whole Mushrooms in Brine 210gm Sliced Mushrooms in Brine
220gm Sliced Mushrooms in Sauce (range includes Peppercorn, Garlic, Tomato & Herb sauces) 425gm Sliced Mushroom in Sauce. The Emma brand has a 36.9% share of the canned mushroom category (total key accounts – Aztec MAT period ended 8 April 2012), explains spokesperson Yvonne Clyne. She says: “Emma canned mushrooms can provide a quick and tasty meal in minutes, just heat and eat. Ideal for a quiche filling, oven baked potatoes or kumara, sauce for steak, base for a soup, added flavour for pasta, paninis and hearty winter casseroles.” For further information on Emma Foods contact the sales team: Mark Santy (Southern Region) 0272 202 452 Tracy Scott (Central Region) 0274 972 823 Zane Hutching (Upper North Island) 0274 859 826.
Wilson Consumer Products For over 25 years Wilson Consumer Products has proudly represented 24
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the American Hormel company in New Zealand. Key account manager Paul Doherty says: “Many people are surprised to hear Hormel’s ubiquitous SPAM Classic 340g SKU sells more than $1m worth per annum in Total Key Accounts (Aztec MAT to 22/04/12) making it the biggest Canned Meat product outside of Corned Beef, and SPAM Classic value sales are 15% more than the largest Canned Chicken product.” There are four different varieties of SPAM – Classic, Lite, Bacon and Turkey. Another canned food product from the Hormel family is STAGG Authentic American Chilli. There are three generous 425g products available in this range; Classic, Lean Beef and Dynamite Hot. Doherty says:“Great by itself or with rice, STAGG Chilli is the ultimate ingredient for anyone yearning for a tasty nachos meal at home. The secret to STAGG’s success is its generous meat content – up to 24%, making it a great value, one step meal for hearty appetites. Kiwis are beginning to
canned foo ds catch on to STAGG with sales in the last quarter up 26.3% versus last year. (Aztec to 22/04/12). With winter coming on STAGG is a must stock for your Canned Foods Segment.”
Aunt Betty’s Creamy Rice Aunt Betty’s has improved the quality (flavour and texture) of the current Creamy Rice products in the market over the last 12 months. “Aunt Betty’s canned rice is the number one Creamy Rice brand ($) and growing at almost 7%*,” says Donna O’Herlihy, brand manager. She explains: “Aunt Betty’s Vanilla
canned rice 4x100g is number one product* with over $1 million in retail sales (in canned rice category) and is driving growth into the canned rice segment with the 4x100g format. These two products (in Chocolate and Vanilla) now hold 23% share of the segment*.Aunt Betty’s is the only supplier for this format.” She adds: “We’ve seen two main types of consumers in this category; the consumers who eat this as an easy after dinner treat or ‘hunger buster’ and consumers who are eating creamy rice for the added protein to their diet (athletes etc). Recently, we believe the trend is more towards
the dessert occasion with consumers heating up the rice before consuming or adding fruit etc. The 4x100g format is also perfect for kids’ lunchboxes or people on the go.” * Aztec TKA MAT to 15/04/12
SPC Ardmona In NZ, SPC Ardmona currently has two brands – SPC and Goulburn Valley. SPC caters for the mainstream canned market, while Goulburn Valley delivers an array of plastic packs suitable for the snacking occasion. Adam Bateman, national key customer manager says: “SPC Ardmona represents 13% value share of the NZ
THE BREAKDOWN Current MAT to 22 April 2012 Total Canned Soup:$25.808m Value % Chg vs YA -3.9 Total Canned and Dry Vegetables: $67.715m Value % Chg vs YA 1.2 T. Canned Asparagus: $3.036m Value % Chg vs YA -22.6 T. Canned Beans: $516,949 Value % Chg vs YA -0.4 T. Canned Beetroot: $8.812m Value % Chg vs YA 1.9 T. Canned Corn: $9.533m Value % Chg vs YA 2.7 T. Canned Mushrooms: $1.965m Value % Chg vs YA -1.6 T. Canned Other Vegetables: $989,517 Value % Chg vs YA -10.6 T. Canned Peas: $1.780m Value % Chg vs YA 0.2 T. Canned Salad Beans: $9.704m Value % Chg vs YA 7.5
T. Canned Tomatoes: $28.983m Value % Chg vs YA 2.5 T. Canned Fish: $92.021m Value % Chg vs YA -0.9 T. Canned Fish Fillets: $2.940m Value % Chg vs YA -2.0 T. Canned Herrings: $192,809 Value % Chg vs YA -7.9 T. Canned Mackerel: $3.260m Value % Chg vs YA -1.9 T. Canned Salmon: $20.445m Value % Chg vs YA -4.6 T. Canned Sardines: $7.821m Value % Chg vs YA -1.8 T. Canned Tuna: $57.362m Value % Chg vs YA 0.7 Total Canned Fruit: $70.514m Value % Chg vs YA -1.3 T. Canned Apricots: $3.263m Value % Chg vs YA -6.7 T. Canned Fruit Salad: $12.021m Value % Chg vs YA -4.1
T. Canned Other Fruit: $8.693m Value % Chg vs YA 1.5 T. Canned Peaches: $22.356m Value % Chg vs YA -3.1 T. Canned Pears: $3.615m Value % Chg vs YA -3.8 T. Canned Pineapple: $11.693m Value % Chg vs YA 5.1 T. Fruit Snacks: $8.873m Value % Chg vs YA -0.4 Total Canned Meals: $93.550m Value % Chg vs YA -0.5 T. Canned Baked Beans: $34.661m Value % Chg vs YA -1.2 T. Canned Corned Meats: $13.823m Value % Chg vs YA -0.4 T. Canned Meats: $11.128m Value % Chg vs YA 9.3 T. Canned Spaghetti: $30.478m Value % Chg vs YA -1.7
* Nielsen New Zealand ScanTrack (Databank)
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Packaged Fruit category (Aztec MAT 22/04/2012). SPC represents 9.6% value share, whilst Goulburn Valley is 3% of the packaged fruit category. Goulburn Valley is the leader of diced fruit snacks and holds 18% value share of the overall fruit snack category with 1.1% dollar growth on last year (MAT 22/04/2012). Goulburn Valley will continue to deliver conveniently packaged fruit that’s great with breakfast cereal, as a workday snack or to simply make a dessert shine! “Future value growth of the category in NZ will rely on innovation and up-trading the consumer in to value-add packs. The NZ category is overwhelmingly skewed towards canned fruit in comparison to other established markets, which are driving different mediums such as plastics and pouches. The NZ market needs to continue to deliver convenience in packaged fruit so that consumers adopt the category. “Multi Serve Fruit is the biggest segment in Packaged Fruit and consists of both Cans and Resealable Plastic ranges.While Cans are the largest segment of Multi Serve (97.7%) they are declining (-4.3%) while the smaller plastic format is showing signs of growth (+12.6%). “Fruit Snacks satisfy a growing consumer need for healthy on-the-go snacking. Seasonality exists in Fruit Snacks with four key ‘back to school’ periods each year,” explains Bateman.
Dole ‘Dole pineapple’ is one of the world’s most well-known household brands. In New Zealand, Pavé represents Dole Packaged Foods, a California26
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based division of Dole Food Company. Among new products launched in NZ in the last 12 months are: Fruit & Jelly – Mango 4/113g Fruit & Jelly – Peach 4/113g Fruit & Juice – Peach 4/113g Fruit & Juice – Tropical Fruit 4/113g Fruit & Juice –Tropical Gold Pineapple 4/113g Fruit & Rice – Mango 4/113g Fruit & Rice – Peach 4/113g Fruit & Custard – Mango 4/113g Fruit & Custard – Peach 4/113g Fruit & Oats – Breakfast Apple 2/113g Fruit & Oats – Orchard Crisp 2/113g Fruit & Oats – Tropical Sunrise 2/113g. Angus Hamilton, CEO, says: “Progress of these products is steady with increasing uptake. We are also planning to launch new products in the next few months. “There is large consumer appeal for ‘In Juice’ items. Consumers love their old favourites improved with good quality fruit – fruit & rice, fruit & jelly, fruit & custard.”
Sealord Sealord is NZ’s 16th largest grocery brand, says Steve Sutherland, marketing manager. He explains: “We are also the leading supplier of canned seafood in NZ with 56% dollar share of canned seafood. Sealord has an extensive range of products in the Tuna and Salmon segments, as well as Smoked Fish, Shrimps and Crab. “Media communication from Sealord is focussing on building consumer awareness of the versatility of Tuna and Salmon. We have recently launched Tuna Mayonnaise 95g, Salmon Sensations Mayonnaise 85g, and Salmon Sensations Tomato and Onion 85g, late 2011. “All SKUs combined have added $430k to the category and Tuna Mayo is achieving a very strong 19.3USW. Salmon Sensations Mayonnaise and Tomato and Onion have both pro-
duced solid numbers selling at 7.3 and 7 USW respectively. The canned market remains competitive as it is a mature market where offerings are generic and duplicated across brands. “Sealord is constantly evaluating new opportunities to drive value into the category. We have a number of products in the development pipeline to meet consumer needs, so keep an eye out for further innovation from Sealord. “Sealord, as market leader and more importantly a New Zealand business, is looking to innovate in a way that builds on our foundation values of sustainable fishing practices. Through work with the Marine Stewardship Council and our participation in the International Seafood Sustainability Foundation Sealord is ensuring our products are ethically sourced and tuna fisheries are well managed and protected for the future.” Consumers are continuing to look for nutritious, versatile and convenient products. Canned Tuna and Salmon fill this need and offer excellent value for money. In addition, consumers are becoming more aware of sustainability and increasingly wanting to be sure their choices are environmentally friendly. “Sealord is meeting this challenge by working with global scientists, environmental experts and industry on fisheries management programmes, as well as looking for new choices for environmentally aware consumers,” says Sutherland.
Wattie’s Wattie’s is an iconic canned food brand, voted New Zealand’s Most Trusted Food Brand1 and loved by Kiwis for generations. There are a lot of myths and misperceptions that surround canned foods and their long shelf life.The secret is simple – backed by over 75 years experience, Wattie’s canned products are sealed in the can and then pressure-cooked to help lock in the goodness and taste without the need for preservatives.
canned foo ds Wattie’s first started canning fruit products in Hastings in 1935. Simon Crampton, marketing manager for Canned Fruit and Vegetables, says:“We select the finest New Zealand grown fruit and vegetables – Wattie’s beetroot and peaches are grown locally in Hawke’s Bay, and every one of our Asparagus spears is hand picked for canning. Look out for our NZ Grown logo on selected Wattie’s products.” Company founder, Sir James Wattie, also saw the need to diversify into nonseasonal products such as spaghetti, baked beans, tomato sauce and soup, as well as canned food for infants. These products have become popular family staples in thousands of New Zealand households. According to Tina Wong, marketing manager for Baked Beans and Spaghetti,“Wattie’s sells over 18.5 million cans of New Zealand’s favourite BeaNZ & Spaghetti a year; with Wattie’s Spaghetti 420g the second biggest selling grocery item in New Zealand and Wattie’s Baked Beans 420g the fifth biggest2. Wattie’s is encouraging consumers to think beyond using these products on toast by highlighting the versatility of Beans and Spaghetti for use in family recipes and for occasions other than the typical weekend breakfast.” Wattie’s is also New Zealand’s favourite Tomato Sauce3. The unique taste comes from the large number of tomatoes that are concentrated and
crammed into every can and bottle, making it rich in lycopene, a powerful antioxidant, and combined with a special blend of spices, it’s the taste that Kiwis know and love. Nowhere else in the world is Tomato Sauce sold in cans, yet this is New Zealand’s most popular packaging format. Wattie’s soups are made with the finest quality ingredients and are naturally good for you too. Kerry Tomane, marketing manager for Soup says: “It’s what’s inside that makes our soup very special. Wattie’s Very Special Creamy Pumpkin soup features real New Zealand cream and fresh New Zealand butternut pumpkin for example.We’re currently harvesting over 650 tonnes of butternut pumpkin in Hawke’s Bay for the popular soup. The Kiwi icon also contains four serves of vegetables and no preservatives. “In addition to six new recipes hitting the shelves this season, we’re giving Kiwis the chance to win stunning diamonds valued at $5000 each. There are 10 to be won instantly; consumers simply check under lids of specially marked cans of Wattie’s Very Special soup to see if they’ve won! The nationwide hunt is set to encourage consumers to consume soup more often, rather than pantry stocking on promotion this winter.” Wattie’s launched into the Canned Chicken segment in April 2010, and now holds 32.1% MAT value share of the Canned Chicken Segment, with
impressive growth +43.2% in the latest quarter3, says Vicki Sew Hoy, senior product manager for canned meats. Made with premium chicken breast and no preservatives, Wattie’s Chicken is really versatile. Sew Hoy says: “It’s a fuss-free convenient way to eat chicken and is great to use in sandwiches, wraps, sushi, salads or mixed with pasta or rice. All our Wattie’s Diced and Shredded Chicken products also meet the National Heart Foundation’s Tick Criteria. Overall results have been pleasing with the four new Wattie’s Shredded Chicken products launched last August largely incremental to the category.” Wattie’s also distributes other canned food brands including, Oak, Pacific, Hellaby’s, Golden Circle and Greenseas. 1 2010 and 2011 Readers Digest Survey 2 Source – Aztec New Zealand data to MAT 20th November 2011 3 Source – Nielsen market data to 25th March 2012
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Health & Beauty Aisle What’s hot in the Hair Care category in NZ supermarkets? FMCG looks at consumer trends, NPD and best sellers.
he Unilever portfolio now includes Sunsilk, TRESemmé, VO5, Dove and Andrew Collinge, each with a differentiated brand proposition for the NZ market, across Shampoo, Conditioner, Treatments and Styling segments. “Unilever is New Zealand’s leading Hair Care manufacturer with 35% value share*,” says Thuy Nguyen, category specialist – Hair Care. Nguyen says: “YTD 15/04/12 Sunsilk is the #1 Hair Care brand in New Zealand**. “The category is becoming increasingly promotionally driven and Unilever is striving to drive growth through developing the market. Treatments are the only segment in growth and with continued product development in treatments, we can increase household penetration, as consumers demand innovation (household penetration currently sitting at just 9.9%***).” Dove has launched treatments in a number of formats, ranging from leave-in masks to the new Dual-Phase Daily Treatment Conditioner. This
unique formulation has a white stripe conditioner that seals cuticles to lock in nourishment and smooth frizz, whilst the gold stripe treats with advanced Nutri-Oils to deeply nourish and replenish essential nutrients, without the grease. Nguyen says:“The launch of Sunsilk’s super premium range Keratinology has been a success, with a $1m rate card support plan, including TV and print advertorials in leading fashion magazines. Keratinology is designed to maintain the beauty of salon treated hair for longer.” TRESemmé has recently been reformulated with new advanced technology, coinciding with sponsorship of Shortland Street and the second year as the official hair stylists of the New Zealand Fashion Festival. “The new range of enriched shampoos and conditioners use a unique formula to lock in moisture and restore and replenish exactly where it’s needed most for chair-worthy hair,” says Nguyen. * Aztec MAT 15/04/12 ** AztecYTD 15/04/12 *** Nielsen 26/02/12
ecostore The new plant-based hair care formulation from ecostore is a breakthrough in healthy hair products without compromise. Its range of shampoos and conditioners are enhanced with nourishing emollients including sweet 28
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almond oil, olive oil, and shea butter, which help prevent tangles while providing natural conditioning and long lasting protection. Melissa Fletcher,marketing director – Australasia, says:“Many hair care brands, including salon brands, use harsh and potentially irritating ingredients such as Sodium Lauryl/Laureth Sulphate (SLS and SLES), Cocoamidopropyl Betaine (CAPB), parabens, silicons and toxic petrochemicals that can strip the protective oils from the hair and make the hair shaft vulnerable to damage. For ecostore, if there is any doubt about an ingredient for people’s health or for the environment, even if it’s plant-based, it will find a safer alternative. ecostore understands how important it is to use a balanced formulation with good skin compatibility that will not strip out the naturally protective oils present in healthy skin and hair. The nourishing oils used in its hair care formulations are chosen for their gentle properties, with their composition being similar to the skin’s natural sebum. ecostore hair care leaves the hair soft, shiny and looking fantastic.” Available in supermarkets nationwide and suitable for all types of hair, the range includes Normal, Dry Damaged or Coloured, Anti-dandruff and Gentle. Among new product launches in the last 12 months are: ecostore Normal Shampoo 220ml ecostore Normal Conditioner 220ml
hai r ca re
ecostore Dry, Damaged or Coloured Shampoo 220ml ecostore Dry, Damaged or Coloured Conditioner 220ml ecostore Anti-Dandruff Shampoo 220ml ecostore Anti-Dandruff Conditioner 220ml ecostore Gentle Shampoo 220ml ecostore Gentle Conditioner 220ml.
L’Oréal Shampoos and Conditioners in New Zealand is a category that has not seen significant volume growth over the last few years suggesting a saturated household penetration. Trading consumers up to higher quality premium brands is the key challenge as a driver for growth. Marcus Thieme – group brand & category manager Hair Care says: “In 2011, L’Oréal has been the key driver of the market (L’Oréal: +22.2% dollar growth, vs +2.0% dollar growth of the haircare market), and is continuing this trend in 2012 to date (L’Oréal: +14.6% dollar growth, vs +0.8% dollar growth of the haircare market)*. This growth stems from L’Oréal’s strong portfolio offer of brands facilitating trading up of New Zealand consumers. Starting from the medium price range, Garnier Fructis offers a natural haircare proposition. L’Oréal Paris Elvive is a premium Haircare brand offering tailor-made technologies for every hair need. At the top end of the mass market L’Oréal launched Hair Expertise in 2011, a range with a sulphate-free formula.” Hair treatments are an opportunity for further growth, adding products to the regime of consumers. Serums, conditioning masques and sprays are the most popular and best-selling products. Thieme says the upcoming trend for treatments is hair oils. Elvive launched “Extraordinary Oil” in May, a product designed for the mass market, contributing to the brand’s expertise as a premium quality haircare range.
He adds: “Two successful treatment launches in 2011 were the Fructis Sleek & Shine Serum, which is now the Top Selling treatment in NZ supermarkets, and the Elvive Total Repair 5 Instant Miracle, a conditioning treatment for damaged hair that takes the #5 position in the product rankings (Aztec: Value dollar sales,Total Key accounts in Grocery, six months to 22/04/2012). L’Oréal is currently launching new ranges for all three brands. New Elvive Volume Collagen is designed for consumers with fine, flat hair. Its unique formula enriched with collagen gives hair more body and volume. Garnier Fructis adds a new range to its offering targeting consumers with the problem of oily roots and dry ends. Eversleek is the new range for HairExpertise designed to smoothen hair without the help of harsh sulfates.
THE BREAKDOWN Current MAT to 22 April 2012 Total Haircare: $133,563m Value % Chg vs YA 0.7 T. Conditioning Aids: $36.690m Value % Chg vs YA 1.3 T. Hair Colourants: $26,291m Value % Chg vs YA 3.2 T. Hair Creams: $544,565 Value % Chg vs YA -10.0 T. Hair Styling Aids: $10.212m Value % Chg vs YA -8.7 T. Hair Treatments: $2.948m Value % Chg vs YA 9.7 T. Hairspray: $6.521m Value % Chg vs YA 4.5 T. Shampoo: $50.357m Value % Chg vs YA 0.3 * Nielsen New Zealand ScanTrack (Databank)
*Aztec Value dollar sales, Total Key accounts (Grocery), 2011; 2012 to 22/04
Pantene Leading hair care brand Pantene has launched a new range of products to coincide with Procter & Gamble’s (P&G) role as an official sponsor of the London 2012 Olympic Games. Each of the new Pantene variants is designed to restore hair health and protect all hair types – without that heavy weigheddown feeling. The release of the Pantene products from P&G also follows findings that over half of women who used to use Pantene no longer do*, due to a negative product experience. Pantene senior scientist Lais Koelle says that the new collections are a breakthrough for the brand and utilise advanced technology. P&G spokesperson Lisa Cunningham explains: “Whether women have had a negative experience due to the previous heavy conditioning agents, or have been warned off by their hairdressers, we are now confident that we have found the sweet spot between high
conditioning formulas that tackle the toughest hair issues but still feel lightweight on all hair types.” The new products join the recently launched Pantene Aqua Light Collection, which was designed specifically for fine hair using the new gold standard formula. This product has alone managed to convert over 60 percent of women who previously disliked Pantene, or had fine hair, to come back to the brand^. To complete the transformation, the new Pantene collections have also been re-packaged moving to new onpack designs, gold lids and a pearlescent white bottle. P&G’s portfolio of trusted, quality brands also includes Head & Shoulders and Wella. * Galaxy survey conducted online in July 2011 among a representative sample of Australian females aged 18-64 years (610 respondents). ^ The Word of Mouth company survey conducted amongst 501 respondents who took part in a product trial.
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Mix “Dominate continues to be at the forefront of hairstyling category innovation with the launch of Dominate Out of Bed,” says Shane Young – co-founder of Mix. He says: “Out of Bed is fast becoming the star of the ‘Premium Mass Styling Category. “After only a few months on shelf, Out of Bed is already ranked 10th best selling SKU in Foodstuffs and 7th in Progressive (AZTEC $/store/week data to 6th May 2012),” explainsYoung. He adds: “Dominate Out of Bed is a super easy to use, dry look paste inspired by the best selling top end salon products and brought to supermarkets at prices that everyone can afford. The product is getting a huge above the line push this year with extensive sampling, radio promotions, magazine advertising, joint promotions and innovative social media promotions. Watch your sales Rise Up and Dominate with Out of Bed!” Young says: “The Shockwaves hairstyling range has been extremely well received by customers with Shockwaves Extreme Gel becoming the #1 selling hairstyling product in Total Supermarkets (Aztec 4-weekly Units/store/week data to 6th May 2012). “The support is seeing excellent traction from the latest additions to the range, Shockwaves Pump it Up Paste, Get A Grip Wax and Slam Jam Glue.The range targets consumers that are more value focussed and young guys first entering the styling market. Shockwaves is a complete offer at a great price,” he says. 30
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Simone Schuster – brand manager Schwarzkopf notes a number of consumer trends. 1. Increasing trend towards nourishment. Products based on oils and in particular argan oil are growing rapidly, hence Schwarzkopf launched the new Marrakesh range in Hair Care. 2. Convenience: This drives new application forms for ease of use and revolutionary formulas on the level of salon products. In answer to this, Schwarzkopf launched Perfect Mousse permanent hair colour, and within the recent Marrakesh launch, its first mousse treatment. 3. Products that offer high performance and protection, coupled with value for money mind-set are in demand. Extra Care Heidi’s Heat Style has been launched to respond to this movement. 4. Uniqueness factor: This persistent trend of thriving to look different and the creation of ‘my own style’ keeps the entire category up to speed for products that are as individual in their shape, colour, application and feel as one can be. Schwarzkopf launched the new Taft Full On Clay. In New Zealand supermarkets, Schwarzkopf offering includes: • Hair Care (Shampoo, Conditioner & Treatments): Schwarzkopf Extra Care • Styling: Schwarzkopf Extra Care,Taft Full On • Hair Colour: Schwarzkopf Brilliance, Perfect Mousse, Nordic Blonde, Men Perfect. Among recent new product launches are: April 2011 – Perfect Mousse Permanent Colour (10 shades) May 2011 – Extra Care Ultimate Care & Styling Range May 2011 – Taft Full On relaunch February 2012 – Live Salon Permanent Hair Colour (14 shades). Schuster says: “Perfect Mousse is now the No 1
Mousse Colourant in the NZ colourant market with 7.2% market share (Aztec Grocery Data MAT 06/05/12). “Extra Care Ultimate Range is ranked as one of our top selling SKUs. The two treatment products are among the top 10 in New Zealand’s treatment market (Aztec Grocery Data MAT 06/05/12).Taft Full On grew by 15.9% since relaunch last year (Aztec Grocery Data MAT 06/05/12). Two months after launch of Live Salon this brand has already achieved a staggering 8.5% market share (Aztec Grocery Data last 4 wks 06/05/12).” During May 2012, new launches included Taft Full On Clay; Extra Care Marrakesh Oil & Coconut Shampoo, Conditioner & Treatment, and also Extra Care Heidi’s Heat Styles Mousse & Heat Shield Spray.
McPherson Consumer For over 80 years Lady Jayne has offered consumers a comprehensive range of quality brushes, combs, styling essentials and hair accessories, allowing you to create a different look everyday to suit your mood or occasion. Bobby pins, hair rollers, elastics, claw-grips and headbands are just a few of the products available within the Lady Jayne styling essentials and accessory range. A new fashion line has been introduced in the adult’s and children’s ranges along with the launch of all new Lady Jayne clipin hair extensions. Lady Jayne has offered women a variety of ways to update or complete their appearance for decades, with hair accessories that are fashionable, stylish, practical, glamorous and most
hai r ca re importantly – affordable. Products that allow hair to look its very best whether at school, the gym, in the office or out of the town…items to contain it, tame it, or hold it, the answer is always Lady Jayne. Lady Jayne has a commitment to excellence with products that are of exceptional quality and value for money. All products undergo a series of tests before being launched to the market and are backed by a 100% guarantee of complete satisfaction.
Wilson Consumer Helena has had a packaging update. It rolled out to supermarkets late 2011 and early 2012, updating the overall design to streamline the logos on the gels and hairsprays and give the brand a slightly more modern look.“It wasn’t a complete overhaul however, as we didn’t want to alienate or confuse the loyal Helena consumers,” says Sara Williams, brand manager.
She adds: “The new packaging has been received well by the loyal users of Helena and has also attracted a ‘new user’ who would have previously dismissed the range. The hairsprays, in particular, with the black packaging and prominent logo allow it to stand out on shelf and gives it a slightly more premium look, with the same low price. Consumers are becoming more price conscious when it comes to their hair care, and with the availability of more hair brands at a lower cost they are easily able to choose products for their needs at a very good price. “Whilst wet look clear gels and Hairsprays will always be a number one seller, younger male consumers are trending towards more ‘natural looking’ hair styles as seen with music stars Justin Bieber and One Direction, for example. The trend towards turning away from the typical wet look gel towards matt
waxes and pastes is becoming quite obvious.”
Neutrogena A spokesperson for the brand told FMCG: “Neutrogena T/Gel Shampoo is uniquely formulated to have a pleasant fragrance; the rich lather helps treat itchy, flaky scalp, and leaves hair clean, soft and manageable.T/Gel is effective as a therapeutic treatment to help control the scalp itching and flaking, symptomatic of scalp psoriasis, eczema, seborrhoeic dermatitis and even common dandruff (RRP $14.99).”
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june 2012 FMCG
Big makeover for
Red Seal reveals a vibrant new look as the company prepares to celebrate its 90th year in New Zealand in 2013.
ew Zealand owned and operated Red Seal Natural Health was founded in 1923 by English herbalist William T Anderton, whose holistic approach to health was revolutionary. Red Seal markets a range of supplements, teas and toothpastes, as well as a botanical oral care range under the Phyto Shield brand, and a number of other Red Seal branded products, including soaps, molasses, sea salt, honey and protein diet formula. The business is owned and managed by Rolf and Rosi Hilke who are passionate about supporting health and well-being through natural therapies. Rolf is the managing director and has guided the company to its current strong position in New Zealand, and a number of export markets, over the last 22 years. Rosi, who trained in Germany as a pharmacist, manages the R&D team
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with a particular interest in natural toothpastes, and green and herbal teas. While the Red Seal brand has a warmth and familiarity to consumers, who see it as “tried and true” and trustworthy, experienced sales & marketing manager Sue Millinchip came on board in 2011 to further strengthen the support behind the brand. Together with packaging design partners, Red Cactus, Sue reviewed the branding and presentation of the products and, after conducting consumer research, determined it needed updating to ensure that it best represented the values of the company. This initiated a challenging process of testing all assumptions and getting to the essence of the brand. Rolf says:“We use both science and naturopathic knowledge to provide the range and expertise to help you support and protect your health and well-being. Part of our brand ethos
is to make the best quality products available at the best price possible, to make good health affordable and accessible. We see Red Seal as being like a helping hand; the support you need to live your best life.” The new logo has been simplified and the branding strengthened. The name has always acted as a “seal of approval” and the holding shape has been softened to reflect this. Rolf explains: “One of the things consumers really liked about our vitamin and supplement range was the simplicity of our labels and we have tried to maintain and improve this.” Red Seal herbal and green teas have always enjoyed a strong following with Kiwis, who aim to live as healthily as possible. Red Seal has introduced some unique products, such as Black Adder – a liquorice tea much loved by women in particular who enjoy the sweet taste and digestive benefits. Red Bush brought the many benefits of Rooibos tea to
a trusted NZ brand
Red Seal owner Rolf Hilke (R) with production manager Ian and some of the despatch staff, Debbie and Meena.
New Zealand and is one of the most popular herbal teas sold today. Red Seal introduced green teas to the mainstream New Zealand grocery market and this spirit of innovation is continued with an exciting new design for the tea packaging. Flavours are communicated with fresh and appetising images. Herbal teas have been a mainstay for the brand and the packs reflect the focus on natural herbs as remedies for many common health concerns, as well as tasting great. The packaging design has probably changed the most in toothpastes where Red Seal has tried to communicate the more natural basis for product formulation. Rosi’s enthusiasm for a natural approach in oral care was encouraged by personal experience. Constant problems with teeth and gums led her to the realisation that chemically-loaded standard toothpastes were compounding her problem. With her first pregnancy (in the early 1980s) she made sure no additional chemicals went into her body, using saltbased toothpaste. While unpleasant
in flavour, she knew it could not harm her baby. The Red Seal range of toothpastes is based upon herbs and minerals and is now parabenfree, giving consumers a real choice in oral care. The new look and feel of the Red Seal range of products is just the beginning, with the focus now shifting to providing more information to consumers via the website. Healthbased topics will be gradually added over time with blogs and feedback mechanisms allowing a real conversation to be held between the company and people interested in their health. An in-house naturopath will lead this development with the support of all the staff. Rolf Hilke explains the company’s vision and the new programme to further strengthen the Red Seal brand. Where do you find inspiration for your products? Red Seal has always been based upon helping the body to be the best it can be. Our belief today is the same
The Red Seal warehouse team.
as that expressed by our founder (William Anderton): “That the human body can be prompted to heal itself using what nature has provided us, and that the use of synthetic chemicals could actually be more harmful in the end.” Our supplements of course provide the herbs, minerals and vitamins that we may not be getting through our diet and that sometimes we need in far greater quantities to combat challenges to our health. All our teas have a health benefit in addition to great taste – did you know 3-4 cups per day of green tea or Red Bush will provide a therapeutic dose of antioxidants? Our toothpastes are fluoride free and use natural herbs and minerals to provide excellent oral health. We are excited to bring products to market that enable everyone to take control of their own health and well-being. Our team, in the research and development area, (led by my wife Rosi Hilke and now including our son Bjorn), has always been keen to use as many NZ-based herbs in our products as possible, (for example june 2012 FMCG
Red Seal staff in the toothpaste department.
natural antibacterial protection from the Totara tree), but they are also constantly looking for innovative new ingredients in the international arena to make our products absolutely world class. How are your products progressing in New Zealand supermarkets? We had a great year last year with good sales growth in what many are finding to be a challenging business environment. As a New Zealand owned and operated company we have much in common with the retail trade in New Zealand and we enjoy strong relationships with the retailers throughout the country. Consumers are looking for ways they can live a healthier lifestyle and this means all our core categories are growing and, pleasingly, our share of the market is also growing. Your vision for Red Seal in the next two years isâ€Ś We are looking for sustainable growth. The relaunch that is currently underway is the first step in a programme to strengthen the brand and prepare for some exciting new products and 34
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increased levels of support.The website and social media offer us a great opportunity to connect with consumers as we have never done before. My immediate goal is to increase top-of-mind awareness and to drive increased brand loyalty. Have you had any feedback on your new packaging? Yes, and itâ€™s all good! We have been presenting to the trade and so far the reaction has been great. But the best test of all is when we asked consumers for their feedback using mockup packs in stores and that has been universally positive. We also are finding our own staff really embracing it, which is very important, as they have to own it. Why did you include QR codes? The use of QR codes came out of the frustration of trying to give people all the information they want on a very small supplement label. It was just never going to be 100 percent satisfactory. The supplement category is one where people crave information and they are very used to finding it on the internet. QR
codes give them the ability to find out what they need at point-of-sale. What are the biggest challenges for the NZ Health Products and Natural Products industry sectors? Competing with the plethora of products sold via the internet both locally and internationally. People do search for information online and there are many opportunities for them to purchase as they do so. Which consumer trends do you predict for the next year? People will continue to look for value-for-money products and will become increasingly educated about their needs. Top tip for NZ supermarkets? Supermarkets have the opportunity to take a greater share of the health and wellbeing categories as consumers see these products as an everyday part of their lives. The challenge will be in ensuring these categories are given enough space and promotion to capitalise upon this trend and to meet the consumer need for information in-store.
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2010 has been a year cancelled TV filled shows, theatre with cutbacks and sales, films has had limited have been he WIFT NZ ticket waited while delayed and Awards 2010 crews have on 18 women shine pushed out. their start dates disappea whose contribu the spotlight screen industry Without soundin r or get tion to the it is true has marked g clichĂŠd, that when to celebrat them out although e this the going tough get as women gets going I have of major ground year. With some been delighte tough the I have had at the helm breaking in and others d at the help tirelessly and projects and business 8th annual putting together the es, well supporte do so well WIFT Awards. in the engine steadily doing what â€“ even reassure d Doing so has they demonstrate room, all of thriving supportid â€“ me that we indeed reminded how importa our finalists collaboration nt do have a even in tough ve community out is to deliverin both leadership and and thought there who g rich, and times â€“ freely their expert â€“ rewarding provoking give their diversity of advice and product, achievements entertainment. The most of all The show their TIME. the gamut this year is remarka of the screen will again studded top ble â€“ we see deliver a industry â€“ craft and rating entertai TV technology, with a few nment extravagstarâ€“ educational, and film, the entertainment, surprises. anza The Eradus documentary, give many drama, after party marketin a chance to programming g, current will catch up and successes and of the year Selecting winners policy making represen affairs, (there have celebrate the but letâ€™s not ted in each of been a challeng forget that these categori here. e to the to support the heart of so many!) es was judges who difficult job WIFT which, the event undertook so is the opportu without such this NZ we thank conscientiously. On nity behalf of WIFT another victim to fundraise, could events and them for their of spirit become yet of time and generosi I would like the recession. ty Behind all to make a mention to of these women, women, the Susi Newborn special welcome and we know are side kick Nia, industry at , our new other others who ED, and her who have support what large, families and got me, and had the whose enjoyme we do and fun through their hands dirty with the audience mates and nt of our fair dinkum out, as well as my good job in the s work makes it the world. producers Ali Black. best Gavin Wood Special When times and person Catherin mention has to go knows how are tough, this is an to our Chaire Fitzgerald industry which all through to who pull has supporte together and another. WIFT this d us the job done. difficult year and support one NZ actively just activities pursues this are it, and EUREKAEnjoy the celebration, quietly got and strength designed to lead the goal: all its you cheers deserve to all you ening of the who make development women a difference role of women screen industrie and are changin out there one frame s and the at a time! the WIFT NZ in them. For me and g the world on behalf Board, it is of purpose and an honour members of to Debra Kelleher always welcome this organisa serve the tion. And we Producer new member s and supporte WIFT Vice Presiden rs! Catherine Fitzgera t ld WIFT Presiden t
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What’s Hot Barker’s Spiced Eggplant Chutney New Zealand family owned Barker’s of Geraldine has launched an innovative chutney flavour. • Barker’s Spiced Eggplant Chutney has wide appeal made from a blend of roasted eggplant and NZ fresh eggplant blended with spices. • Combine with yoghurt for a wonderful instant dip. • Barker’s growth is double category growth. Barker’s value share is 16%, with +14% growth.* Available now. Order from your Twin Agencies Rep. *Aztec Temple, MAT to 01.04.12
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Print & packaging NZ packaging quality claws back work from Asia, finds Dave MacIntyre.
lexible packaging is returning to the New Zealand market from offshore, due to the skill and ingenuity of Kiwi printers who are lifting the impact of products on the shelves. The flexible packaging industry in NZ suffered due to the drive towards lower cost, which saw a lot of packaging work moving offshore as local suppliers could not compete on price. This trend saw a dramatic reduction in the number of NZ-based packaging companies. Instead, print buyers went to offshore printers whose predominant print method is gravure. In layperson’s terms, gravure reproduces with a higher definition whereas competing NZ products were often using flexography (a technically more challenging process). The much higher resolution of gravure means the final result tends
to look sharper and has more detail in it. NZ flexo printers were also up against gravure presses offshore offering nine or 10-colour printing and many designers jumped at the opportunity to increase the vibrance and complexity of their designs. Now however, NZ packaging companies have managed to find ways to improve their quality levels to such an extent that customers are coming back. One printer related how work came back from Thailand due to better and more consistent lead times locally, and more came back from China for similar reasons. What is the secret behind this quality upsurge? Scott Porter, account manager for Cryovac Sealed Air in Hamilton and chairman of New Zealand Pride In Print, says the offshore suppliers created a benchmark in the market and
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innovations this caused the NZ industry to think hard about what it could achieve. “Although flexo quality has been knocking on the door of gravure for some time now a couple of relatively recent innovations have seen flexo begin to regularly achieve and sometimes even exceed this quality level. “With the development of laseretched plates and improvements in the reliability of this process, coupled with higher-pigmentation inks being developed and other advances, we are witnessing the debate for having designs being printed gravure diminish amongst many print buyers.” Such advances are spilling over into the marketing relationship between printer and client. Porter says there is now a real spirit of cooperation between designers and pre-press companies to see what NZ printers can achieve. “By utilising some of these recent improvements in the industry we are seeing difficult designs being done locally at a very high quality level.”
Speedy delivery Porter says NZ printers are taking strong steps into lean manufacturing and the benefits make them more cost-competitive. There is an additional logistics benefit in having the packaging company on-hand locally, for speedy deliveries to the end client. “This drive towards lean manufacturing is also being aggressively adopted by many of the FMCG packaging companies and in order to best maximise the benefits of reduced inventory levels and JIT deliveries it has become apparent that local supply, although possibly slightly dearer in the initial price, offers many other benefits. “Time to market and the ability to change designs and order volumes at short notice are a recognised benefit to the business. When cash flow is king, a long supply chain with a lot of inventory either in production or in transit can be seen as a negative to the financial performance of a business,” says Porter.
“Time to market and the ability to change designs and order volumes at short notice are a recognised benefit to the business.” Scott Porter, chairman, New Zealand Pride In Print.
09 63 444 63 www.rpcnz.co.nz
transport • warehousing • logistics
If it’s critical to you entrust it to us . . . june 2012 FMCG
“By utilising some of these recent improvements in the industry we are seeing difficult designs being done locally at a very high quality level.” Scott Porter, chairman, New Zealand Pride In Print. Frank Brokken, managing director of Nekkorb Solutions, says New Zealand flexo printers are up there with the best in the world and that is why they can give offshore gravure printers such a strong run for their money. He says new technologies are helping the flexographic printer achieve better results and adds one other benefit of staying onshore: “Flexo is also a more environmentally-friendly printing process than gravure with much less solvent emissions exhausted to the atmosphere.” And what of the customer viewpoint? A case in point is NZ King Salmon, where general manager, retail, Shaun Young gives the print buyer’s perspective: “I believe flexo printing has improved significantly in NZ with a little push from suppliers and competition on price and service. The biggest issue for someone like NZ King Salmon is the size of the run, which means we are not able to look at gravure printing. “Competition from India, Australia and China has meant that suppliers have quoted on smaller runs
but … everyone is looking to achieve JIT deliveries so this can work, but still means risk on margin and potential write offs in the long term.” Young agrees that within NZ, designers, printers and marketing departments are all pooling information, sharing overseas experience and showing a desire and passion to keep things locally made if at all possible – as long as the quality is acceptable. In the case of NZ King Salmon, that involved challenging printer Sealed Air to improve the whites on the packs. Sealed Air trialled new plates that brought significant improvements. Inks are also constantly being reviewed. From a logistics viewpoint NZ King Salmon sees the benefits of local supply, particularly as the company progresses down the lean process internally. “Part of this is to ensure all our
suppliers are also travelling this journey so competitive quotes and service agreements are challenged and reworked to ensure we are all winning along the way. “Close to production is an advantage. However this could be easily overridden by other factors if price, service and quality were not up to speed as well.” Fortunately, says Young, NZ flexible packaging printers are now attaining better intensity of colours, higher registration, more consistency of colour and improved picture printing quality as well as giving excellent service. He concludes: “The brain drain works in reverse when suppliers and manufacturers share and leverage information. More networking should be undertaken between designers, marketers and machine operators. “It does work!”
Dave MacIntyre is a freelance writer who specialises in writing about politics, transport and the print industry. He has received three New Zealand journalism awards.
Fiona Hill Dale Rous Hamish Marr
www.ocg.co.nz | 09 377 7575 40
FMCG june 2012
New equipment for Printstock
apier-based packaging manufacturer Printstock Products has installed further equipment to broaden its range of products. To complement its four, six and eight colour flexographic printing presses, Printstock last year installed a further two new high-speed film-slitting machines. This year, Printstock has installed a new high performance cello/film, bag-making machine. Printstock Products produces a large amount of printed pie film as well as various film bags for the baking and confectionery industries. Managing director Graham Eagle says the staff are working an average 55 hours per week as the norm, laminating aluminium foil to paper and board as well as printing burger wraps for the food industry and printed film. Printstock will also take on those smaller run print jobs! With new projects underway, further purchases of new machinery are planned for this current year. Printstock Products is an awardwinning manufacturer, offering a onestop solution for virtually all packing and packaging products for the food, hospitality and gift-wrap industries. The company can help with nearly all packaging requirements – whether it is production line packaging in film,
paper or foil, die-cut packing products, printed or laminated boxes, individually cut wrappers for confectionery, or bulk manufactured chocolate foil. The company has invested in the best machinery and quality staff to deliver the results its clients have come to expect from them in relationships that span many years. “We form a partnership with our clients so that we can reach great costeffective and efficient solutions for all packing and packaging challenges,” says Eagle. “Our speciality is laminating, printing and embossing the packaging materials for use in the food and gift-wrapping industries but we encourage you to explore our site to see examples of the wide range of products we manufacture.” Printstock Products has a reputation for being creative, successful and innovative and over the years the company has been the proud recipient of many business awards, including: • Exporter of the Year Hawke’s Bay Chamber of Commerce. • Export Commendation from the NZ Trade & Development Board. • TradeNZ Export Award. • Business of the Year Hawke’s Bay Chamber of Commerce. • Hawke’s Bay Chamber of Commerce Business Recognition Award. • City of Napier Mayoral Enterprise Award.
Printstock Products Ltd • Cello bag making • Up to eight colour ﬂexographic printing (small run specialty) • Film, paper, laminates • Chocolate Foil • Laminating – Film, paper, foil, board • Embossing, diecutting
AWARDS FOR BUSINESS EXCELLENCE • Napier mayoral enterprise award • Tradenz Export Award • Chamber of Commerce Business Commendation • Tradenz Export Award - Business of Year Hawkes Bay Chamber of Commerce - Exporter of the year • 2011 Chamber of Commerce (again) HB Business of the year (medium/large category)
Printstock Products Ltd Turner Place, PO Box 3171, Onekawa Napier, New Zealand Tel: 06 843 4952, Fax: 06 843 2700 E-mail email@example.com Website www.printstock.co.nz
june 2012 FMCG
g rocer y b us ine ss New fuel management system in the pipeline Foodstuffs and Fusion Transactive have confirmed a deal for the payment solutions company to replace Foodstuffs’ current fuel management system. The new system will be rolled out to all 44 Foodstuffs fuel sites nationwide by the end of 2012. The integrated management solution will enable Foodstuffs to be more flexible in its fuel discount offering for customers shopping at participating Pak’nSave and New World stores. Foodstuffs spokesperson, Steve Anderson, says this is an exciting opportunity for customers as it improves the customer experience to enable a more efficient, reliable and L to R: Sir Peter Maire (Fusion Transactive) and Steve Anderson (Foodstuffs). faster forecourt service. “We are committed to offering our sites. The G6 is complete with the latest security certification Pak’nSave and New World shoppers the best experience. This requirements and with the ability to accept discount contract enables us to sustain this promise, and continue to vouchers by barcode scanning as well as contactless payment deliver the fast and robust service that our customers want. technology. “This partnership will ensure real improvements in the Fusion’s spokesperson Sir Peter Maire says the partnership is a management of fuel sites, allowing our stores to be more flexible in reacting to the market fluctuations, which gives them great step forward for both companies, and updating the fuel site technology is a vital component in maintaining Foodstuffs’ the advantage of offering competitive prices,” Anderson says. market-leading position. He says G6 barcode scanning will Fusion Transactive, a New Zealand-based global supplier of improve the speed of service on the forecourt resulting in less retail automation systems, partnered with Foodstuffs to see the new G6 Outdoor Payment Terminal deployed to the fuel queuing for Foodstuffs customers. l
AsureQuality announces new CEO AsureQuality has appointed Michael Thomas as its new CEO, commencing June 5 2012. Thomas was previously with PGG Wrightson based in Christchurch where he held group general manager roles in agri-services, financial services and for the South American operation. During his time with the company, he had responsibility for over 1800 staff and $700 million annual revenue. Prior to this, Thomas spent 10 years in group general management positions in Australia’s leading agri-services company Landmark, and parent company AWB (Australian Wheat Board). Thomas brings to AsureQuality a unique blend of strong industry knowledge and involvement in the food and
FMCG june 2012
agricultural sectors, both in New Zealand and overseas, and will continue to extend the breadth and quality of the company’s services in Australasia and internationally. AsureQuality is a commercial company owned by the New Zealand Government providing food safety and biosecurity services to the food and primary production sectors. It carries out food quality and safety testing for producers, processors and competent authorities around the world. l
Award for Australia’s greenest supermarket
Woolworths has won the Sustainable Retailer of the Year Award at the BRW AMPCSC Australian Retailer of the Year Awards 2012. Managing director of Woolworths Supermarkets Tjeerd Jegen said the award was recognition of the quiet efforts and drive of the Woolworths’ team over the past five years to create a more sustainable business. “We are very humbled to have received this award, especially in an area where many people don’t expect a supermarket to be making such good achievements,” Jegen said. “Woolworths has publicly committed to a set of clear, measurable and very ambitious targets in its sustainability strategy, and we are now seeing some very good results in key areas such as food waste and carbon emissions. “We have a goal of a 40 percent carbon reduction by 2015, effectively capping our emissions at 2007 levels, despite the growth in store numbers. This has meant that while we opened a record number of new stores this last year, our emissions stayed the same as the previous year. “Our target of zero food waste from
our stores is well underway now with more than 2200 tonnes of food being rescued for charities, and nearly 5000 tonnes of food waste going to earth power programmes. “In our newest stores we have reduced the carbon emissions per square metre by more than 22 percent over the stores we were building in 2007. This is being achieved with energy efficient lighting, air conditioning and low impact carbon refrigeration.” Jegen said while there is much more to be achieved across all sectors of sustainability, Woolworths has the foundations now to really drive meaningful outcomes. “One thing I have learned in retail is that you can’t simply wake up one morning and declare yourself a ‘green’ business. Making the changes to a more sustainable model required investment and commitment. “I am really pleased that the team at Woolworths has worked so hard on these initiatives for many years now, and I am sure it is just the start of the Fresh Food People setting a new standard for food retailers in Australia.”. l june 2012 FMCG
re c r u i t me nt
Recruitment service beyond expectations Kevin O’Shannessey Manager – FMCG Sales &
Kevin O’Shannessey on being proactive.
Marketing, OCG Consulting.
Is pig hunting your thing? If we’re honest, it wasn’t our thing either. A group of seven OCG recruiters ventured out one weekend in early May, to “go bush” and find a pig.The fact that we paid a man a sum of money to lead us through the bush (literally) and show us how it’s done, may suggest we’re not tried and true pig hunters. My point? Two things: One, simply to get your attention to read a recruitment article and secondly, to be bold enough to suggest that knowing your suppliers and customers better may be a very good step in the direction of success. Ask us next time we chat how successful we were hunting for a pig!
Advances in technology have allowed marketers to target consumers and track results with more efficiency. As a team of consultants of sales and marketing roles within FMCG we’ve become more and more convinced over the past 12 months that generic online advertising on job-boards is becoming less relevant and far less effective. There is a similar trend happening in a slightly different area within the marketing industry. Marketing funds are now being spent in a far greater way below-the-line than ever before. No doubt the marketers who read FMCG magazine can attest to this. Marketing campaigns of some of the biggest brands in the world are moving away from using mass media branding through the use of generic and general messages and moving towards the use of direct response marketing methods. In simple terms, the marketing is specific and targeted and creates the opportunity to interact with your customers to get to know them better. The experts in this field believe there are two main reasons for this major shift.The first is that consumer attitudes have been changing. Instead of settling for generic messages that aim to convey a message to a large, anonymous, 44
FMCG june 2012
and uniform audience, consumers have become more demanding. They insist on responding better to messages that are more engaging and personal, that allow for twoway communication and interaction with the marketer through preferred communication avenues. Advances in technology have allowed marketers to target consumers and track results with more efficiency. This links into the next factor, which is the fragmentation of media. Consumers now demand more personal and conversational messages and also demand messages that are made to fit their individual and unique personality and characteristics. The growing diversity of targeted consumers along with the larger options for communication channels makes it difficult for marketers to effectively reach their target audiences when using a general/generic approach. The candidate community within the FMCG industry is no different. They have the same demands. The reality is, only a low percentage of candidates are ever active and would therefore be actively surfing an online job board. If you were lucky enough to have someone read your advert online, a generic “come and do this KAM role for us” type advert is probably not going to get the candidate over the line. Growing your relationships in key roles in the candidate community is essential for line managers to be successful in their own roles. Not only to find the right person for your vacant position, but also to be ahead of the pack and find the right candidate to be your successor when you get promoted. I would be impressed if you had a natural successor of leaders across the business you’re employed by. I’d encourage you to get to know your recruitment consultant well, so there is a level of trust well beyond the process that you are in, or about to be in.Your perception of your own employment brand may be a little rosier than reality. If the professional service that you have engaged within recruitment is not adding as much value as you’d hope, do something about it. If you haven’t explored the new-way of recruitment, you may be missing out on some fabulous candidates. So, next time you’re thinking of strengthening the calibre of employees in your team, don’t wait until you have a gap. Be proactive and get to know some great people beyond your immediate network. I’d welcome the challenge of our team providing a unique recruitment service well beyond your expectations.
mar ketin g
From interruption to permission and beyond Ashley Kramer considers effective modern marketing strategies. Letâ€™s make one thing clear about marketing: it only exists to make sales. The traditional marketer makes a sale using â€˜Interruption Marketingâ€™. As the name implies, itâ€™s all about interrupting people and involves getting marketing messages in front of as many eyeballs as possible. Interruption marketers focus on reach, frequency and demographics, hoping that they stand out from the clutter just enough to make short-term gains, regardless of the quality of the marketing message. A clever interruption-based campaign will reach a small percentage of its audience, but that just means that the majority of the market simply didnâ€™t care. Interruption Marketing isnâ€™t effective because the messages are generic, impersonal and unsolicited, and Interruption Marketers are basically selfish. How many marketing executives look at the work their company produces from an outsiderâ€™s point of view? Do they consider whether consumers really want to see their ads? Would they want their own ad to interrupt their favourite TV show? Unlikely. â€˜Permission Marketingâ€™ on the other hand relies on the consumer actually wanting to hear a marketing message. Permission Marketing was formalised by renowned marketing expert Seth Godin in 1999 when he wrote Permission Marketing: Turning Strangers Into Friends And Friends Into Customers. He stated that if you had permission to communicate with a selected audience, using relevant and personal messages, youâ€™d achieve far more than if you just took aim at the biggest audience possible. The internet made Permission Marketing a serious
Ashley Kramer Account Director, Partisan Advertising
marketing tool, but today, anyone with an email address or a social media presence gets too many â€œsolicitedâ€? messages from brands and companies that they â€œlikeâ€?. So the original positioning has become blurred, and permission has led to a saturation thatâ€™s as annoying as spam. Having a Facebook page, a Twitter feed, or bombarding an email database isnâ€™t the answer to creating a permission-based marketing campaign either. Permission Marketing, with its core principles of empathy and respect, is about understanding that companies have the privilege, not the right to deliver their messages to consumers, and this privilege should never be abused.We all need to recognise that consumers hold the power, and they can, and often do, say â€œNoâ€? to unwanted marketing messages.The customer is a person, not just a demographic, and their most valuable resource is time.Waste it at your peril. These principles of Permission Marketing can be, and need to be, applied to every part of your marketing strategy. As David Ogilvy said:â€œThe consumer is not a moron; sheâ€™s your wife. Donâ€™t insult her intelligence.You wouldnâ€™t lie to your wife; donâ€™t lie to mine.â€? If your consumers havenâ€™t given you permission to contact them, then look for ways to make them want to contact you, to enjoy your marketing and to become evangelists for your brand. Change your thinking from push to pull and find a way to move your product to the edge of your category, which is where youâ€™ll stand out from the crowd.Thinking like this is how we get the results we do in the toughest markets out there.
What could you do to increase your sales by 200%? Put your competitors out of business
Get a celebrity endorsement
Cut your prices. Out spend and out think them in every area. This is a lot harder than it sounds and this fiendish plan certainly wonâ€™t win you any friends.
RETAIL EXPERIENCES BRAND DEVELOPMENT PERMISSION MARKETING
Maybe a cool rugby player, a sexy Olympian or even someone from â€œThe GCâ€?? Just hope they donâ€™t lose their appeal before you reach your target.
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partisanadvertising.co.nz !SHLEY +RAMER s ASHLEY PARTISANADVERTISINGCONZ s
Increasing your sales is easier when you work with people who understand what matters most. Call us today.
june 2012 FMCG
The future of
shopper Alison Sinclair wraps up the recent Shopper Marketing Summit in Chicago.
osted by the US Path to Purchase Institute, the 2012 Shopper Marketing Summit was held in Chicago on 16-18 April 2012. The summit boasted â€œa boat load of critical insights, information and solutions to help better connect with shoppersâ€?. I attended the conference to gain a greater understanding of the level of sophistication of the US market in the discipline of Shopper Marketing, to uncover examples of best practice, and evaluate how the New Zealand and Australian markets compare. While I came back confident in the level of skill, thinking and leadership across the Australasian market I do think there are things we can learn from our American counterparts, especially in the areas of integration, execution and measurement of Shopper Marketing initiatives.
Objectives based on sales measures
Strategic sales, marketing and retailer objectives
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The shift from trade to shopper The first session of the conference, a panel-based discussion, explored the key differences between traditional Trade Marketing and Shopper Marketing.The panel included representatives of thought-leading manufacturers and agencies such as Nestle USA, Kimberly-Clark, Millward Brown and JWT. They outlined the key differences as shown in the table to the left. The panel acknowledged that the increased complexity associated with shopper-centric activities meant that
campaigns involved a greater number of stakeholders, required longer lead times, required a new approach to budget allocation, and in many cases were more difficult to measure.They did however also acknowledge that, if executed well, shopper-led campaigns had the ability to deliver more than just increased sales (eg, improved retailer relationships, new occasions for a particular category or brand, increased household penetration, increased incidence of trip types, increased foot traffic, etc). The first day of the conference focused on two key elements of Shopper Marketing: Insights and Measurement, which are the bookends of any good Shopper Marketing campaign. Yet, these two elements are often those that are glossed over in the race to bring an activity to market. The truth is these elements are vital and can make the difference in elevating a basic trade marketing initiative to a true shopper marketing campaign, delivering exceptional results for a brand, category and/or retailer. Throughout the conference the importance of quality insights was highlighted through the case studies presented by market leading organisations, including The Coca Cola Co, Pepsi Beverages Co, Procter & Gamble and Kimberly-Clark Corp. These companies demonstrated how insights into shopper attitudes and behaviours helped them to develop new products and campaigns that had been highly successful meeting,
is bright and in many cases, exceeding their campaign objectives.
The path to integration While Shopper Marketing has existed in the US longer than in Australia or New Zealand, it is encouraging to know that we are keeping up with the level of thinking the US is demonstrating. That said, the head start the US market had in the field of Shopper Marketing has meant forward-thinking organisations have had the time to experience initial success of activating against shopperrelated insights. They have now set about fully integrating shopper as a function into their businesses. Some have progressed further down the path of integration than others but all of the organisations presenting at the summit indicated that full integration was their end goal. Many spoke of the challenges in making such a fundamental change within their business but all recognised the benefit that would result once it had been achieved. It is important to note that those organisations who have integrated shopper have not walked away from traditional consumer marketing, and nor will they. Rather, they have built shopper into the strategic business, category, brand and channel plans alongside consumer marketing, understanding that there is a place and need for both to sit side by side. The more sophisticated have realised that their budgets are throughthe-line rather than above-and/
or-below. They believe that funds should be allocated to the points along the path to purchase where they will have maximum effect, driving business efficiencies. For many businesses this requires a fundamental shift in thinking, which must take place from the top down with cultural change led by a determined senior management team. Those who have made it work are singing the praises of a fully integrated strategy that elevates the shopper to the same status consumers have long held in the hearts and minds of marketers.
The impact of technology on the path to purchase The two subsequent days at the event split sessions into four streams: • Digital Path to Purchase • Big Picture • Insights into Activation • Mobile Solutions It will be no surprise, given that two of the four streams relate to technology, that the impact of digital and mobile on the path to purchase was a hot topic, with many manufacturers and retailers seeking to understand the impact that technology is having on the way shoppers interact with their stores and brands. It was encouraging to hear repeatedly that the shopper path to purchase is not isolated to the four walls of the store with universal acknowledgement that the shopper exists pre, in and post store. The idea that technology has
meant that active search (otherwise defined as ZMOT or Zero Moment of Truth by Google) is crashing with the FMOT (First Moment of Truth – a phrase coined by Procter & Gamble), is being embraced by some who are working on ways to encourage the use of technology at the shelf. Piers Fawkes, president of PSFK, who spoke on the topic ‘The Future of Retail’ gave the example of retailers such as Neiman Marcus, Mercedes Benz and Burberry who have digitally enabled their staff to enhance the shopping experience making them better equipped to address any questions their customers may have regarding product availability, technical specifications etc, as well as to help them customise the shopping experience of their regular customers.
Aligning manufacturer and retailer objectives Often it is easy for manufacturers to concern themselves wholly and solely with driving growth and sales of their brand, creating activations that deliver on their internal objectives with limited consideration for the retailer, their objectives and how this activity may fit into the retail environment. A number of speakers at the conference talked about the importance of aligning the manufacturer and retailer goals. April Carlisle, a leader of Shopper Marketing at Procter & Gamble (P&G) said, “it has to june 2012 FMCG
work for everyone, or it works for no one”. She gave the example of Tide laundry detergent within mass merchants. P&G recognised that the laundry detergent category was a low priority for these retailers who were much more concerned with achieving growth in higher margin categories such as apparel. With this retailer objective in mind, they developed a campaign which supported the positioning of their brand, based on a shopper insight relating to the shoppers desire to get longevity out of their clothes. They created a campaign for Walmart, in conjunction with Levis jeans, which communicated to shoppers that Tide was the washing detergent they should buy to protect their new jeans. They achieved offlocation displays in the apparel section of the store and saw a dramatic increase in the sales and trial of Tide laundry liquid. This campaign was initially executed in Walmart, but was extended to Target, linked with an alternative brand of jeans, once the results of the Walmart activation proved so successful. This campaign has been repeated a further three times in Target based on the success and the link to a retailer-critical category. Another session presented by Kellogg, Procter & Gamble and Ubisoft emphasised the huge opportunity that exists in cross-category promotions. They identified six key principles for a successful partnership:
1. Start early and be transparent 2. Align shopper targets 3. Bring a valuable offer 4. Leverage unique partner assets 5. Activate around the path to purchase 6. Execute with excellence. They gave examples of two campaigns that linked the release of gaming titles, Madden NFL and Just Dance 3, with Gillette and Kellogg cereal brands respectively. Both campaigns were hugely successful in driving awareness of the release of the game, which was the objective for Ubisoft, and achieving the brand objectives for Gillette and Kellogg.
The future of shopper marketing When asked what the future held for Shopper Marketing, speakers observed a number of trends and challenges they thought have an impact in the next few years. Amongst these were the rise of digital technology, the emergence of a multichannel shopper, shoppers who expect access and engagement wherever they might be, further embedding shopper into the DNA of business, retailtainment, price transparency and a more holistic approach to the path to purchase. If this short but diverse list is anything to go by, the world of shopper is only going to get more interesting and the one thing that was made abundantly clear at the summit was that those who are along for the ride and are taking shopper seriously are those who will reap the rewards in the future.
CONTACT DETAILS Annette Piercy M: 027 300 8010 Freecall: 0800 300 8010 E: firstname.lastname@example.org W: www.shop-ability.com
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Alison Sinclair M: +61 488 161 681 E: email@example.com W: www.shop-ability.com.au
Hear More about shopper marketing from Alison Sinclair and Peter Huskins
Upcoming free briefing for FMCG readers Shopper Marketing Summit/ Westfield Retail Study Tour Debrief Wed 25 July Crowne Plaza Auckland Free for FMCG magazine readers when you quote code ‘FMCG’. And there’s also … Shopper Marketing Training 1 day course $795 Wed 22 August Crowne Plaza Auckland 10% off for FMCG magazine readers when you quote code ‘FMCG’. Register your expression of interest for either or both of these events with Annette Piercy email firstname.lastname@example.org or call her on 027 300 8010. When you register, Annette will send you more detailed information.
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Indus Recruitment By thinking outside the box, an Auckland-based recruitment company has taken the hassle out of hiring temporary staff.
ndustrial employment specialist Indus Recruitment has developed exclusive software that takes the hassle out of time sheeting, enables a business to remotely track employee hours, and makes it simple to re-hire the same people, even months later, all at the click of a key. With 17 years’ experience in the recruitment industry behind him, Alen Levis is well aware that for many employers most systems of administering temporary workers are both inefficient and time-consuming. IndusTime, online, makes that a thing of the past, he says. And while he acknowledges there are other programmes enabling online time sheeting, Indus has developed a number of unique refinements that improve performance by supplying more information more quickly. These include providing names plus photos of temps, thereby avoiding confusion – a boon for managers who are good with faces but not so
hot on names. A simple tick-the-box template makes for quick and easy completion of time sheets, and automatic calculation of hours means less time spent with a calculator. Indus Scan is another exclusive product developed by Levis and his team. Low-cost scan cards, featuring a photographic image of a temporary worker and including a personalised/ special QR code, are used to clock in and out again; the Indus management reporting system provides all the necessary information – photos and names plus times of arrival and departure – needed for fast and accurate time-keeping. “Tracking who worked when has never been easier,” says Levis. Indus Recruitment has also addressed concerns around the time involved ensuring temps are familiar with the requirements of a particular work situation by introducing Indus Rehire, an online tool that enables a company to rehire those temps who impressed.And because it’s web based,
Free Scanner valued at $700*
Alen Levis, recruitment consultant, Indus.
and can be accessed from anywhere, operation is quick and easy. With technology changing every aspect of business today, state-of-theart solutions to hiring temporary workers is an expectation, says Levis. “With our exclusive Indus programmes, we’re making that a reality.”
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Coffee to go C-store looks at new consumer trends and selecting the right coffee machine for your store. Fancy a flat white? Soy cappuccino? Espresso with three sugars? Whatever your coffee of choice, the team at Z Energy will be delighted to make it for you on the spot. They have their own special blend roasted just for them in Auckland, made from 100% Arabica beans and Rain Forest Alliance certified. Meanwhile, Wild Bean Café has been serving 100% Fairtrade certified coffee beans since 2008, becoming the largest Fairtrade coffee retailer in
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New Zealand. Since then, Wild Bean Café’s Fairtrade contributions have made a difference for coffee farmers and communities around the world. More and more New Zealanders are interested in the stories behind the products they buy. From Fairtrade coffee to recyclable and biodegradable cups, it pays to keep an eye on consumer trends. But what about smaller convenience store owners looking to invest in a coffee machine for the first time?
“An important consideration that must be made when selecting machinery is maintenance. An overly complex coffee machine can cost far more in service costs, so it is important to research before you buy.” Nic McClean, food service manager, Cerebos C-store talked to Nic McClean, food service manager at Cerebos, about selecting not only the right coffee machine, but the appropriate machine for your business. McClean says: “Coffee machines have become a highly soughtafter commodity in recent years as the demand for not only coffee, but quality coffee, has increased. Consumers have become more educated with their choices when seeking the ideal cup of coffee. It is this very reason why selecting the right coffee machine has become such an important factor for businesses seeking to make a coffee offering. Often they will select a machine without understanding the full long-term costs and it is important to get good advice to assist you. “There are a multitude of machines available in the market and what we have done at Cerebos Foodservice is categorise those machines into three groups; espresso machines, automatic machines and vending machines,” says McClean. Espresso machines are commonly used by qualified baristas and are often seen in larger convenience stores. These machines are heavy duty and with dedicated and skilled staff operating them, they can be an invaluable asset.
Automatic machines are another line of machines that can brew ‘barista’ coffee at the push of a button. They can be operated by both the customer and/or your staff. These machines combine the consistency of espresso machines with a more simplified process that requires less interaction on the operator’s behalf, which can be great for businesses wanting to provide quality coffee with less experienced staff. McClean says: “A particular machine that epitomises this efficiency is the Faema Barcode, which offers a variety of options along with a consistent pour and taste. The Barcode is among a new line of ‘Super-Automatic’ machines and also has a self-sufficient cleaning process, which is undoubtedly a useful asset for time-conscious operators, as any machine that uses fresh milk has to be cleaned very regularly. Arguably the Faema Barcode is just as good as many baristas.” Vending machines are another group of machines that, if utilised in the appropriate environment, can be an asset in providing quality coffee at an efficient rate. These machines are more aligned to lower volume sites and can help a business to provide a quality offering. These machines can offer powdered options including powdered milk. Powdered milk is
still a great solution when volumes are low, or there is a risk that the machines may not be cleaned as regularly as the fresh milk options require. McClean says: “An important consideration that must be made when selecting machinery is maintenance. An overly complex coffee machine can cost far more in service costs, so it is important to research before you buy. “Cerebos Foodservice can assist you in selecting the right machine and provide full and comprehensive training to help you avoid unnecessary costs in the future. We can also provide ongoing preventative maintenance checks for each machine to ensure the machine functions to its full potential,” he says. l
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New budget hits smokers hard New anti-smoking measures were announced in the new budget, which was released on May 24. The Government has ruled out an immediate tax hike of 30 percent and chosen instead a slower and steadier tax increase. The price increase is aimed at stopping young people from taking up smoking and encouraging existing smokers to quit. The Government has a target of making New Zealand smoke-free by 2025. It was also announced $20 million will be spent over the four years on measures to tackle smoking. Other measures in the pipeline include, removing tobacco from sight in shops, and forcing tobacco companies to sell their products in plain packaging. Tobacco tax currently raises about $1.3 billion a year, or 1.5 percent of total revenue. The Government ruled out an option of a one-off 30 percent increase and subsequent 10 percent increases, which Treasury estimated would raise about $1b over the four years and save up to 700 lives a year. Instead, the chosen option is estimated to raise about $528m and save up to 350 lives a year.
Treasury said it preferred a sequence of regular, modest and well-signalled increases as this was likely to contribute most to a long-term and sustainable drop in smoking rates. It also reduced people stockpiling before a major increase. By 2016, a packet of 20 cigarettes will cost $20, or $1 per cigarette. l
Z Energy leads price decreases Z Energy says steadily easing global fuel prices and a stabilising Kiwi dollar had enabled the company to lead national price decreases across both grades of petrol and diesel at the end of May. Z’s general manager of Retail Mark Forsyth said Z was pleased to be able to lead the decrease. “We want to be straight up that we have started to see a long-overdue improvement in retail fuel margins over the last few weeks, after months of pretty poor margins. We are in a highly fixed cost, low margin industry, which has historically compensated for very low returns by steadily reducing investment in New Zealand’s basic infrastructure,” said Forsyth. “The reluctance from the global oil companies to invest in New Zealand can no longer continue without compromising New Zealand’s security of fuel supply. The recent improvement in fuel margins of around four cents per litre – out of which operating costs are taken – starts to provide the confidence that Z needs to commit the $50 million of capital investment in bulk storage infrastructure that New Zealand needs. “We’re now advancing these plans.”
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Z’s net profit margin on fuel sales for the last financial year was 2.1 cents per litre. Its return on capital was less than 10 percent. Forsyth acknowledged the pressure from the likes of the AA for prices to have dropped earlier, because fuel margins were higher than they had historically been. “We have been consistent with the AA and with the public – our customers – that history has not served the New Zealand motorist at all well in this industry, and it’s time to change that. “More than half of New Zealand’s service stations have been closed in the last 25 years, bulk fuel storage has not kept up with fuel demand, fuel tankers are travelling millions of kilometres more on our roads each year as a result, and some of our competitors are avoiding costs by not adding cleaning additives to their petrol,” he said. “We can continue down this road until our supply chain breaks, or we can be straight up with our customers and tell them what’s happening in this industry and why it matters. “As a Kiwi company, we’re committed to delivering value to our customers and to New Zealand. We will always compete hard on price but we are not afraid to tackle the hard issues in our industry when others would rather not.” l
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Government intensifies anti-tobacco push Trina Snow, executive director, NARGON.
Trina Snow considers the impact of the new restrictions.
Just three years ago Health Minister Hon Tony Ryall repeatedly assured NARGON that his Government had no plans to restrict the display of tobacco products unless compelling evidence was produced that it would actually reduce smoking. Fast forward to today and the same Government is not only about to introduce strict tobacco display bans from 23 July 2012, but is also clearly signalling that all cigarettes will soon have to be sold in plain khaki packaging. Cabinet has made an ‘in-principle’ decision to introduce a similar plain packaging regime as Australia although there will be public consultation later in the year. From the outside, it does not seem like the Government has received any significant new scientific evidence relating to tobacco displays or packaging since the 2008 election. What appears to have changed is the political landscape. Despite a record result in the last election, the National Party remains reliant on its various coalition and support partners to ensure a razor-thin majority in Parliament. Given the serious questions around the Act party following what has been dubbed in Wellington as the “Banksdotcom” donation scandal, the Maori Party is in a very strong position and clearly knows it. Co-leader Hon Tariana Turia is determined to push through stringent anti-smoking laws before she retires at the next election and this is largely the impetus behind the government’s crusading anti-smoking agenda.The stated aim is to make New Zealand a smoke-free country by 2025. While National will try to frame the tobacco restrictions as public health measures, there is unarguably some hard ball politics at play. Additionally, they will know that no government ever gained popularity by defending big tobacco companies. So, despite the government’s promise to consult with the public on plain packaging, it is virtually certain the draft plain packaging measures will pass
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unchanged – regardless of any evidence or arguments provided during the process. Cabinet’s intention is that all cigarette packets will be a bland and deliberately unappealing khaki green colour, covered in graphic health warnings and display the brand and type of cigarette only in a small, uniform and nondescript font. The proposals appear to have broad political support and, if introduced, are expected to pass easily, probably unanimously. Act is the only party which might vote against the legislation. Tobacco companies have warned against the move saying it will not reduce smoking rates, would infringe on their intellectual property rights and breach several free trade agreements signed by New Zealand. Imperial Tobacco told the British government, which is considering similar legislation, that “tobacco packaging has never been identified as a reason why people start to smoke or continue to smoke”. Australia was the first country in the world to pass tough plain packaging legislation and the government there is currently involved in a High Court case after the major tobacco companies took legal action. New Zealand’s Government will almost be hoping that the United Kingdom and Australia run the legal gauntlet against challenges from the tobacco industry before we introduce essentially the same scheme here. Conversely, the tobacco industry may be tempted to target New Zealand because we are the smallest jurisdiction and have signed up to the most free trade agreements. A consortium of American organisations active in New Zealand – including the US Chamber of Commerce and the United States Council for International Business – have issued a statement claiming tobacco firms’ logos and branding are protected by laws and international treaties. However, Prime Minister John Key denies New Zealand has signed any agreements that would stop Parliament introducing plain packaging. However, he acknowledges that any group can test its case in court. Stores should be gearing up to ensure they are ready for the new tobacco display restrictions which come into force on 23 July. However, they also need to be aware that further restrictions on displays, packaging and sales are likely as the Government, pushed by the Maori Party, continues to clamp down on tobacco.
Lessons from the US liquor industry Keith Stewart attends a Nielsen presentation and finds a thirst for innovation. Nielsen USA’s liquor industry specialist Danny Brager delivered an insightful summary of the current status of the US liquor market recently, an overview that was notable for the presence of at least two elephants in the room – a brewery duopoly. The reason for their presence was the striking similarities between the state of liquor sales in the US as reported by Brager, and in New Zealand, with both markets tracking a sharp decline
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in beer consumption, while wine and spirits continue to take market share from the brewing sector. Brager made the comparisons keen for most in the room, not least representatives of the two dominant beer producers, when he declared part of the problem in the US was complacency by the major companies. “The two big companies dominate the sector, with 80% of the market between them. Perhaps they have
been too comfortable in their position and allowed wine and spirits to gain without them noticing,” he said. But there were signs, he said, that they were fighting back and becoming more innovative in their approach. However, the bottom line for beer was that in spite of booming craft beer sales across the US, beer now represented less than 50% of the liquor market for the first time, after four consecutive years of
declining sales volumes. With big beer brands failing to claim a share of the innovative product sector, it has been left to craft beers to hold up the sector. Craft beer sales in the US grew 17.3% in value in 2011, and 15.6% in volume. Which is a pretty good performance given that wine’s share grew just 2.5%, consolidating the United States’ position as the world’s largest single wine market. This is evidence that craft label marketers have kept in touch with consumer trends and sentiments, and showing their giant compatriots the way to maintain beer’s credibility in the dynamic US marketplace. These are signs that the US beer duopoly is getting the hint in the expanding share of beer sales in the new products category. According to Nielsen data, 10% of beer sales in 2011 were of products that did not exist five years ago. One way for brewers to match the taste for new flavours and drink experiences that seem to be driving the entire US alcohol beverage market right now. This increasing diversity of products is setting up numerous micro-trends that capture segments of the market, rather than one product wave that dominates growth. The range currently covers products from ciders and fruit beers, mix-your-own craft beer six-packs, and bespoke tea
and adult lemonades, to flavoured whiskies, and an almost circus-like selection of flavours in the vodka category. Spirits continue to outperform the beer sector in the US, and flavoured spirits are particularly strong. While vodka as a whole is growing steadily to maintain its position as the market leader, unflavoured vodkas managed just 2% growth in 2011, while flavoured vodkas returned a massive 21%, and now account for 20% of the total vodka sector. For Brager’s New Zealand audience, these details carried significant comparisons with recent developments in the New Zealand market, not least the rising success of ciders and fruit beers, and the continued strength of the craft beer sector. This is of particular interest to grocery, where most beer sales
Nielsen USA’s liquor industry specialist Danny Brager.
Brager estimates that at-home beer consumption in the US is probably 10 to 20% ahead of where it is in New Zealand, but he expects that with similar trends panning out in both countries the New Zealand share will continue to grow.
Perceived added value has become the name of the game in all beverage sectors, where notions of craft, individuality, flavour enhancement, and lifestyle value are all tangible brand assets that need endorsing in well tuned retail operations. are now made, especially as the US appears to be slightly in advance of trends in New Zealand. Brager estimates that at-home beer consumption in the US is probably 10 to 20% ahead of where it is in New Zealand, but he expects that with similar trends panning out in both countries the New Zealand share will continue to grow. Because of this, innovative ideas that have worked in the US could be worth considering here, in particular the creative packaging that allows consumers to select their own range of beers for a do-it-yourself six-pack, or the growing fashion for fill-your-own craft beers. Don’t stand still Marlborough-based Moa has already launched into this area, and others are investigating the options and packaging opportunities that need considering to meet this challenge, both at a producer and retail level. Brager’s point is that nobody can afford to stand still in an increasingly dynamic market where sophistication is as valuable as innovation. In this context, clever packaging that allows greater consumer input appears more effective. And there is more demand in the United States
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for enhanced retail experiences, especially when selling premium products such as craft beer, top end spirits and wine. Perceived added value has become the name of the game in all beverage sectors, where notions of craft, individuality, flavour enhancement, and lifestyle value are all tangible brand assets that need endorsing in well tuned retail operations. Brager cited a number of retail operations where expertise is the feature, and in many cases an essential for success, as the number of retail liquor outlets in the US skyrockets. One of the features of the US market that could be worthy of more attention here, is the demands of disparate ethnic tastes that make up the market. New Zealand’s increasing cultural diversity may not offer the same fractured market opportunities as the various ethnic sections of the US do, but in Maori, Pacifica, South and East Asian communities there is certainly scope for innovation of approach. In the US, for example, the large Hispanic market consumes 20% more beer and 20% less wine than the white sector, while poorer and ‘black’ markets have recently increased
consumption of sweet, fruity wines, usually labelled as Moscato, said Brager. Wine it seems has recovered from the economic crisis well, with Nielsen data showing growth in all price points over US$9 per bottle, with the over $20 category the fastest growing. Female customers continue to dominate the wine sector, especially in grocery, and online retail is the fastest growing portion of the retail wine market. Brager had some good news for New Zealand wine, with sales up 22% in value and 24% in volume for the 2011 year. However, in a market where higher priced wines are growing, New Zealand’s strongest growth was in the under $5.99 sector, with volumes up 23.9%. Wine exporters need to be cautious here, as this trend has dropped the average value of New Zealand wine sold to $10.95 per litre. In summary, the overview was all good news, unless you were an elephant. There seems to be plenty of scope for market development and a thirst for innovation, if the US market is in any way an indication of what could happen here in the coming months. Certainly Nielsen, as masters of the US and local liquor data business, were well placed to give the sort of high quality intelligence that should benefit local operators. With 150 clients contributing to Nielsen’s beverage alcohol team across the US the standard of information was as high as you can get. l
Keith Stewart is writer at large for Mediaweb’s food group and foodnews editor.
Liquorland ‘store of the year’ Liquorland was named ‘Liquor Store of the Year’ at the inaugural Roy Morgan Customer Satisfaction Awards. Roy Morgan Research has been collecting data from New Zealanders for the last 10 years, but for the first time in New Zealand, is using its research to reward deserving New Zealand companies for having consistently high customer satisfaction ratings. Liquorland was awarded ‘Liquor Store of the Year’ for achieving the most months with a number one ranking – a huge testament to Liquorland’s commitment to outstanding customer service. Dave Hargreaves, CEO of Liquorland, says that the franchise is thrilled to have won the award. “I’m overwhelmed with gratitude to our customers for their ongoing support and appreciation,” says Hargreaves. “All of our stores strive to deliver the best possible service – we truly think of locals as our friends, and it’s fantastic to
The Liquorland team receives the ‘Liquor Store of the Year’ award.
see the feeling is mutual.” As a 100% Kiwi owned and operated franchise, Liquorland owners call on their specific local knowledge to personalise the experience and provide outstanding customer service. An emphasis on being involved in the local community; a friendly, welcoming environment; and passionate owners have helped Liquorland grow to almost 80 stores since its launch in 1981. l
First new expression of Jack Daniel’s in more than a decade For the first time in nearly a generation, there’s something new when it comes to whiskey from the Jack Daniel Distillery. Jack Daniel’s Tennessee Honey is crafted with world-renowned Jack Daniel’s Old No. 7 Tennessee Whiskey, mingled with a proprietary honey liqueur resulting in a unique, smooth offering. “In every sense of the word, this is a natural,” said Jack Daniel’s Master Taster Jeff Norman. “Jack Daniel’s Tennessee Honey brings together two complementary tastes in a new way. The quality and character of Tennessee Honey is in keeping with the Jack Daniel’s tradition, and we think our friends will be pleasantly surprised with the new offering.” Norman noted that the flavour of honey greatly complements Jack Daniel’s uniquely smooth charcoal-mellowed character. With hints of honey and other natural flavours creating a complex taste profile, Norman said the product will be unlike any other offering in the honey category. “Jack Daniel’s Tennessee Honey is the perfect
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name for this product because each bottle is made with real honey and our Tennessee Whiskey made in Lynchburg,” said Norman. “Obviously, it’s unique in that regard. Nothing else is made with Jack.” Arriving on shelves in late June, Tennessee Honey will be available across the country in a 700ml format and will be line priced with Jack Daniels Old No. 7 Tennessee Whiskey. The launch of Jack Daniel’s Tennessee Honey will be strongly supported nationwide. Launch parties will be held up and down the country allowing consumers the opportunity to sample this new and great tasting offering. Digital and social media programmes are in place to drive reach and build frequency – not only making consumers aware of Jack Daniel’s Tennessee Honey but leading them every step of the way from the door to the counter. TV advertising is also planned for June and July. For more information call your local Hancock’s representative. l
Moa unleashes the Growler
Sometimes less is perfect...
Our same awardwinning wines are now available in a NEW convenient 500ml bottle
Kiwi craft brewer Moa has brought flagons back to life for your beer-drinking pleasure. The Growler* is a mighty 2-litre, refillable glass vessel and with its screwtop cap, the Growler can be used again and again at select locations around New Zealand. “A Growler on its own is a lonely creature and to really give it some bite Moa hunters must first seek out its tag-team partner the ‘Kegerator’ – a mobile keg perfect for dispensing the delicious Moa range,” says Moa general manager Gareth Hughes. Sleek and ideal for sharing, the Growler literally lets you take tap beer home with you just like the good old days. The fact it’s brewed by a true craftsman is an obvious added bonus. “The Growler/Kegerator combo is a great way for beer lovers to experiment with the full variety of the Moa range – from the tried and true Moa Original lager to special seasonal brews. You can own your own Growler for just $10 and refill it from $17,” says Hughes. Growlers and Kegerators are now available throughout New Zealand at selected stores. Moa Beer comes in 10 varieties and is brewed with fresh locally produced hops and without adjuncts such as rice, sugar or corn. Moa is fastidiously handcrafted in the traditional method and rounded off through the use of winemaking techniques, including barrel aging and bottle fermentation and conditioning (like Champagne). *According to Wikipedia the name “growler” likely dates back to the 19th century when fresh beer was carried from the local pub to one’s home by means of a small galvanised pail which made a growling sound as CO2 from the sloshing beer escaped from the lid. l
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Australian Reds What could be better in winter than a nice glass of red wine enjoyed by a roaring fire – and it’s the perfect match to hearty winter fare too! BWS found a couple of good value-for-money drops. Deakin Estate wines are produced near Red Cliffs in North West Victoria. Red Cliffs was established as an agricultural settlement in the 1880s by former Australian Prime Minister Alfred Deakin – and the wines are named in his honour. Since 1967, when vines were first planted, Deakin Estate wines have become renowned for remarkable quality at affordable prices and are available in a range that includes a variety for every occasion. The Deakin Estate range of wines now has a brand new look. The wines remain the same – varietaldriven, fruit-forward styles that always over-deliver. The packaging solution has a distinct visual language, utilising premium metallics. The labels are premium and classic, in line with consumer trends and expectations. The strength of the previous
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packaging has also been leveraged by utilising varietal colour coding. The introduction of “Estate Grown, Family Owned” provides heritage and a sense of place for the brand. A spokesperson told BWS: “Estate wineries produce the finest quality wines and at Deakin Estate we are proud to wear that label. We pride ourselves on producing superior quality wines using only the best fruit from the estate.” The changes in Deakin Estate’s packaging have also meant a rejuvenated image is required for the Master Brand. Brand support includes twin bottle packs, banners and header cards. All Deakin Estate wines are now produced in bottles that are ‘Lean+Green®’. The process to make these bottles takes out considerable weight, and energy and water
consumption from each bottle but maintain the proportions and premium image brand Deakin Estate requires. The new bottles are lighter in weight, by between 18% and 21%, with narrower bottle dimensions and smaller carton size. This means a reduction in weight of shipments and better cubic efficiency. Deakin Estate’s long-standing reputation as an Estate Grown brand that consistently over delivers in the $8-$12 price point remains unchanged. The new-look packaging will appeal to a broader range of consumers in both the on- and off-premise. The packaging is contemporary and easily identifiable to leverage opportunities with vibrant colours and strong varietal differentiation. The inclusion of metallics adds a premium cue that will cut through in this competitive price point.
wi n es Curious Shiraz Deep purple in colour, with an intense aroma of dark fruits and spice, the 2010 Curious Shiraz expresses true varietal character. With subtly integrated American Oak balanced with ripe plums and blackberries, this wine has excellent structure and length. Secondary aromas of chocolate and spice add intrigue and complexity to the wine with soft tannins creating a supple and smooth wine with impressive length.
Deakin Estate in Victoria, Australia.
RRP $14.99 PW Wines Phone: 027 579 9463 email@example.com
Deakin Estate Shiraz 2010 Rich blueberries with subtle notes of menthol and black pepper highlighted by some spicy vanillin oak on the nose, and a palate rich and juicy with blueberry characters and well balanced oak. This wine has good structure with medium tannins and a lingering finish. A company spokesperson said the new look will attract younger consumers in the 25+ age group and increasingly female consumers to consider the Deakin Estate brand. Deakin Estate Shiraz 2010 (RRP $14.99) is reminiscent of rich blueberries with subtle notes of menthol and black pepper highlighted by some spicy vanillin oak on the nose. This wine has good structure with medium tannins and a lingering finish. Deakin Estate Merlot 2010 (RRP $14.99) is a lovely and complex wine. The nose displays rich ripe red fruits including cherries and plums with more subtle rhubarb and spicy oak aromas and a hint of characteristic leafiness. The aromas carry through to the rich and juicy palate. It has smooth tannins and a rounded and lingering finish. Both are available through Glengarry and selected supermarket and wine retail stores nationwide. l
RRP $14.99 Hancocks Wine, Spirit & Beer Merchants Phone: 0800 699 463 firstname.lastname@example.org www.hancocks.co.nz
Deakin Estate Merlot 2010 A lovely and complex wine, the nose displays rich ripe red fruits including cherries and plums with more subtle rhubarb and spicy oak aromas and a hint of characteristic leafiness. The aromas carry through to the rich and juicy palate. It has smooth tannins and a rounded and lingering finish. Our best Merlot yet! RRP $14.99 Hancocks Wine, Spirit & Beer Merchants Phone: 0800 699 463 email@example.com www.hancocks.co.nz june 2012 FMCG
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Steak of Origin judges (L to R): Allyson Gofton, Richard Loe, Tanya Hart, Jon Morga n and Sarah Ulmer.
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DIARY JUNE 9-10
SEPTEMBER GLUTEN FREE FOOD & ALLERGY SHOW
ASB Showgrounds, Auckland
Langham Hotel, Auckland
FINE FOOD NEW ZEALAND
THE FOOD SHOW CHRISTCHURCH
ASB Showgrounds, Auckland
CBS Canterbury Arena
THE 2012 FOOD AND GROCERY EXECUTIVE PROGRAM
Mt Eliza Centre for Executive Education, Victoria, Australia
THE FOOD SHOW
ASB Showgrounds, Auckland
RESTAURANT & BAR SHOW
ASB Showgrounds, Auckland
THE GROCERY CHARITY BALL 2012
ASB Showgrounds, Auckland
NZ FOOD AWARDS
The Langham Hotel, Auckland
GLUTEN FREE FOOD & ALLERGY SHOW
TSB Bank Arena, Wellington
FOODSTUFFS NATIONAL GROCERY EXPO
SkyCity Convention Centre, Auckland
Deloitte/Management magazine Top 200 Awards
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