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incorporating decemBER 2012 Volume 18 No 11 $9.15

THE BUSINESS OF MANUFACTURING • LOGISTICS • SUPERMARKETING

fmcg . co . n z

foo d ne w s . co . n z


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contents

36

6 Editor’s note 8 Industry news 11 FMCG Online 13 Trend Monitor

decEMber 2012

Up Front

Category checks 24 Snack foods 34 BBQ products 40 Family planning

Regulars

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34

12

Nargon

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Nielsen

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Recruitment

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Beef + Lamb

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Fresh and local

World’s first fat tax axed  re you serving A ‘Dinner Tonight’ shoppers?  evin O’ Shannessey considers K the true meaning of leadership. Award-winning NZ sausages In season

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Feature

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Feature

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Shopability

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Health & Beauty Aisle

Made in NZ Back to school It’s time to fire up the BBQ Family planning

OUR COVER Pak World the environmentally responsible, FSC certified carton supplier.


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contents

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What’s Hot New products in store

Subscription form Snap Spotted out and about

Diary

decEMber 2012

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Your guide to upcoming industry events

Grocery business Keeping you up to date with packaging, IT, supply chain and logistics

44 Grocery business news 46 FGC

Katherine Rich reports on the FGC’s annual conference

48 Feature

New payment technologies

50 Packaging

Nick Rowe, director of The Packaging Collective, reviews the latest trends

Convenience store and oil channel updates

52

Feature Jeff Rogut, executive director AACS finds a fresh perspective on an overseas study tour

53 C-store industry news

53

Highlights from the first European Convenience Show

54 Nargon

Trina Snow on the minimum wage debate

55 Resource directory 63

56 Feature

Sileni Estates CEO Graeme Avery has the Midas touch

59 BWS industry news

56


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e ditor ’s note Vol 18

No 11

decEMber 2012

issn 1175-8279

Incorporating

Serving the business of manufacturing, logistics and supermarketing

tamara rubanowski – editor editor@fmcg.co.nz

peter corcoran – account manager Mob: 021 272 7227 peterc@mediaweb.co.nz

Miles Gandy – Account Manager Mob: 021 266 8145 miles@cooperstreet.co.nz

Trish day – BWS Account Manager Mob: 027 561 6556 trishd@mediaweb.co.nz

Production Manager Fran Marshall (09-832 0024) franm@mediaweb.co.nz

Design Cherie Tagaloa

Subscriptions subs@mediaweb.co.nz 09-529 3000 $90.00 a year (incl GST) for 11 issues Australia $150.00 Rest of the world $190.00

Printing & Pre-press PMP Print

Publisher

Mediaweb Limited PO Box 5544 Wellesley Street, Auckland 1141 115 Newton Road, Eden Terrace, Auckland 1010 Phone 09-529 3000, Fax 09-529 3001 www.mediaweb.co.nz

‘Tis the season to be busy! In one of my first jobs as a young journalist I learned that entrepreneur Graeme Avery (who was then my boss overseeing a well respected international publishing empire), is a remarkable, hard working multi-tasker. He was named New Zealander of the Year for his contribution to business, sport and tourism, holds an Honorary Doctorate from the Auckland University of Technology and was instrumental in the establishment of the Hawke’s Bay Wine Country brand, Food Hawke’s Bay and the Hawke’s Bay Farmers Market. He is chairman of the New Zealand Food & Wine Tourism Network and CEO of Sileni Estates, which he founded in 1998 after selling his publishing business. Graeme is one of those rare people who seems to have the Midas touch and on pgs 56-58 we look at Sileni Estate’s latest haul of gold medals and awards. Wine is undoubtedly one of New Zealand’s most important flagship products, but did you know that avocados are our third-largest fresh fruit export, with exports in 2011-2012 valued at $63m? There are more than 1600 avocado growers in New Zealand based mainly in the Bay of Plenty and Northland. Last year marked a record crop for this local

industry with 3.7 million trays exported. Specialist resource writer John Clarke tells us what else is fresh and popular in produce aisles, seafood and meat products on pgs 18-19. In these challenging economic times an ever changing retail landscape requires flexible responses. Discounting is the new ‘normal’ for shoppers with nearly 60% of all goods purchased in supermarkets on promotion. Many consumers are now simply waiting until certain products are on special. However, national spending is likely to peak this month, as Kiwis ready themselves for Christmas and New Year celebrations. December will be a super busy time for retailers and suppliers, but I hope that you and your families will also get a chance to relax and unwind over the holidays. Our team is taking a well deserved break for a few weeks and you will find your next edition of FMCG in early February. Meanwhile, make the most of summer, check out some of the new BBQ products shown on pgs 34-38, and enjoy the festive season. Happy holidays from all of us at Mediaweb!

The opinions and material published in FMCG are not necessarily those of the publisher except where specifically stated.

Tamara Rubanowski editor@fmcg.co.nz

© 2012 Mediaweb Limited. ISSN: 1175-8279 (Print), 1179-8718 (Online).

Official b2b magazine for the Gluten Free Food & Allergy Shows. Media partner Nargon Supplier Awards. Media partner Fine Food NZ 2012.

Corporate Social Responsibility Mediaweb supports the following organisations:


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news Countdown’s newest supermarket and pharmacy opens Countdown has unveiled its newest store, bringing its fresh approach to food and great value to central Wellington for the first time in nearly 20 years. The 3400 square metre supermarket is located at 176 Adelaide Road, Newtown, and was officially opened by Celia WadeBrown, Mayor of Wellington. The Newtown supermarket is the first in New Zealand to feature the new Countdown Pharmacy offering, with a pharmacy conveniently located within the supermarket. Customers will be able to purchase prescription and pharmacyonly products from a qualified pharmacist, and take advantage of convenient supermarket trading hours and competitive pricing. Countdown Newtown store manager Cameron Black believes the supermarket will be a welcome addition to Wellington. “It’s the first Countdown supermarket to be built in central Wellington in 20 years, and it’s been highly anticipated by the community,” said Black. “Newtown residents and workers can look forward to having a fantastic new supermarket featuring Countdown’s range of fresh food and great value, as well as a unique and convenient pharmacy – it will truly be a one-stopshop.” The store will employ 160 people and includes a large fullservice bakery baking fresh goods daily, as well as an expansive produce section, butchery department, service deli and

seafood department. It will also feature a walk-in beer chiller, a Lotto outlet and a large covered car park with more than 200 spaces. In addition to eight checkouts and four express checkouts, the store will also include six self-serve checkouts so customers can scan and pay for their shopping themselves. Countdown Newtown incorporates many of the fantastic design elements of Countdown’s new generation stores, and has been carefully designed and constructed to reduce its impact on the environment. It features energy efficient CO2 refrigeration plant systems, night blinds on refrigerated cabinets, sliding covers on freezers, heat reclaim off the refrigeration coils and energy efficient lighting to help minimise the store’s carbon footprint. The store’s regular trading hours will be Monday through to Sunday, 6am to midnight. From 10 December, the store will also offer online shopping. Black, a Wellington local, born and bred in Newtown, said he had met with many members of the local community ahead of the opening. “We’ve had such a great response from locals, and we’ve worked really hard to get the store ready for opening day. Our team has had extensive training to ensure they’re more than ready for the Christmas rush.” At the store opening, Countdown also presented a donation to Wellington Hospital from this year’s Countdown Kids Hospital Appeal. l

Ch’i celebrates 25 years New Zealand’s first ever flavoured water was launched 25 years ago and today Ch’i is still proud to be known as nature’s natural energy drink. Containing the unique flavour of a blend of Chinese medicinal herbs with pure untainted mineral water sourced from an artesian spring near the beautiful Kaipara harbour and a hint of kiwifruit and honey, Ch’i is rich in silica and essential minerals, which gives it its crisp refreshing taste. Ch’i takes its responsibility as a New Zealand owned and operated business seriously, and understanding New Zealand’s obesity epidemic, is now proud to introduce Ch’i Zero Sugar, said a spokesperson.

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As the name suggests, Ch’i Zero Sugar contains no added sugar. Instead, continuing to use nature as its inspiration, Ch’i Zero Sugar is sweetened naturally with an extract from stevia, which is 200 times sweeter than sugar and is free from synthetic sweeteners. For those wanting to live a healthier lifestyle, it’s worth noting, that for every 1 litre bottle of Ch’i Zero Sugar enjoyed in place of a conventional ‘soft drink’ or juice, 150 grams of sugar (equal to 2/3 of a cup) is removed from that consumer’s diet. Ch’i Original and Ch’i Zero Sugar (RRP $2.99 for 400ml and $3.89 for 1 litre) is available at all New Zealand supermarkets and selected stores nationwide. l


n ews

Changes in the wind at Fonterra Fonterra Co-operative Group has announced a change to its senior management team arising from a reorganisation of its consumer businesses across the Asia Pacific region. The Co-operative announced that it was combining its Australian New Zealand (ANZ) and ASEAN/Middle East/North Africa businesses to form a single Asia Pacific/Middle East/ Africa (APMEA) business unit. The managing director APMEA will be Mark Wilson, Fonterra’s existing managing director ASEAN/MENA. The appointment takes effect in January. After six years of working in Melbourne away from his Sydney based family, Fonterra’s managing director ANZ, John Doumani, has indicated that he will take the opportunity to leave the Co-operative and pursue opportunities outside Fonterra. He will assist in the transition period and will leave at the end of March next year. Fonterra chief executive Theo Spierings said the move was part of the Co-operative’s strategy to grow its consumer businesses: “Our businesses across Asia Pacific represent around 40% of our earnings and are vital to the Co-operative.

There are big growth opportunities in the emerging markets of Asia and the Middle East, and some challenges to address in our home markets of Australia and New Zealand and our strategy requires us to address both. “Mark Wilson is a very experienced global business leader who has grown our Asian business from strength to strength and we know he will do a great job in this expanded new role.” Among other significant changes, units in the $525 million Fonterra Shareholders’ Fund began trading on the New Zealand Stock Exchange on 30 November. The fund will allow dairy famers to sell their dividend rights to investors and gives the public the opportunity to invest in the world’s largest milk processor and exporter for the first time. However, holders of the units will not be entitled to the voting rights of Fonterra shares, with farmers concerned to ensure they retain control of the company. The fund will give liquidity to the Trading Among Farmers scheme, ending the company’s annual redemption risk and giving more certainty to its balance sheet. l

december 2012 FMCG

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news Jamie Oliver’s new products arrive at Countdown Jamie Oliver has launched his very own frozen fish range in New Zealand. The Jamie Oliver by Findus range, featuring 100% Alaska Pollock and breadcrumbs, champions high quality, sustainable alternatives to species like cod and haddock. Jamie Oliver says, “I am proud to be working with Findus, not only because they’ve been making frozen seafood products for decades, but more importantly, because I share their commitment to sustainable fishing. We want to encourage people to try different types of fish and together we’ve sourced some tasty varieties without damaging the environment or fish stocks for the future. The fish are frozen at their freshest, locking in all that fantastic flavour, which means my range is not only good for the sea but it’s also good for you.” The Jamie Oliver by Findus range (RRP $4.99) is designed to be suitable for everyday cooking. With Jamie playing a huge part in recipe development, the range offers topquality ingredients and comes in three tasty

flavours including: • 10 brilliant fish fillet fingers made with 100% Alaska Pollock fillet, wrapped in Jamie’s naturally golden crumb • 4 crispy Pollock fishcakes with oozy cheddar cheese & juicy sweetcorn • 4 crispy mini fish cakes with crunchy parsley breadcrumbs. Fish is an area where people feel nervous, according to Jamie; “They are either over cooking it or under cooking it, and don’t even mention the word bones! Frozen fish is quick and easy to cook, it’s unbelievably tasty and it’s great value for money as it rarely gets wasted. My frozen fish range includes fishcakes and fish fingers, which are packed with nutrition as the freezing process seals in all the goodness like vitamins and Omega 3,” Jamie continues. The Jamie Oliver by Findus range will be sold exclusively at Countdown stores. l

Every Day restaurant quality meals at home Celebrity chef Peter Gordon is renowned across the globe for his unique culinary philosophy, which has been influenced by his extensive travels. With award-winning restaurants in Auckland (Bellota, and dine by Peter Gordon), in London (Kopapa, The Providores and Tapa Room), as well as seven cook books to his name, Gordon now wants to bring his cooking inspiration home. Commenting on the new Every Day range he says: “I love

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to cook creatively, and my excitement about new flavours and textures from all around the world inspires me to create fusion dishes. With this range, I want you to enjoy restaurant quality food at home. Every Day.” Created an Officer of the New Zealand Order of Merit in 2009 for his services to the food industry, Gordon continues to inspire and enthuse with his brand new range of foods, perfect for summer entertaining or for a simple meal at home with family. The Peter Gordon range of Every Day Meals includes: Mushroom, Miso and Ginger Risotto (RRP $6.99 for 400grams); Moroccan Braised Pork (RRP $8.49 for 400grams); and Kumara Miso Mash (RRP $6.99 for 400grams). The Peter Gordon Every Day range can now be found at selected New World and specialty food stores nationwide. l


@

What’s online

fmcg.co.nz FMCG has a few web exclusive features to get you clicking.

Countdown acknowledges best suppliers Who was honoured with special awards at Countdown’s annual Supplier of the Year event in Auckland on November 21? Visit our website for a comprehensive list of all the award winners.

Recycling arrives on forecourts Minister for the Environment Hon Amy Adams officially launched the first large scale forecourt recycling project in New Zealand. See all the details on fmcg.co.nz.

New Products From brand new sparkling wines for the festive season to the latest in snack foods and health & beauty, take a sneak peek at some exciting product launches online.

Foodstuffs celebrates staff achievements Staff who have advanced their career prospects by training for qualifications on the job were acknowledged at Foodstuffs Auckland and Wellington training awards ceremonies. For a full report and images visit fmcg.co.nz.

An office in the palm of your hand

PL US

Debbie Mayo-Smith counts the ways you can get more value from your smartphone.

An extensive archive of previous issues of FMCG you may have missed as well as news, category reports and more.


n a rgo n

World’s first fat tax axed Trina Snow, executive director, NARGON.

Trina Snow considers a failed experiment.

In October 2011, Denmark became the first country in the world to introduce a “fat tax”; in this instance a national surcharge on foods which were considered high in saturated fats. Not satisfied with that measure, the Danish government also intended to increase taxes on products containing “high” levels of sugar, a policy immediately dubbed the “chocolate tax”. The “fat tax” instantly raised the prices of Danish staples including butter, milk, cheese, many types of meat, oils and a number of processed foods including pizza. If the “chocolate tax” went through, sweettoothed Danish consumers would also be paying more for chocolate, biscuits and cakes. At the time, opponents of the tax, which included a number of producers and retailers, said the “fat tax” would be ineffective, expensive and a bureaucratic nightmare to administer. There was similar scepticism about the proposed “chocolate tax”. Opponents argued that these taxes were very blunt policy instruments, that humans need certain levels of fat and sugar to function properly, that people should be encouraged to have a balanced diet and more regular exercise rather than simply having to pay more for eating the same foodstuffs, and that hungry Danes could simply hop across the border to buy their “naughty foods” elsewhere. After one full year in operation, it turns out that the “fat tax” naysayers were dead right on all counts. On 10 November 2012, the centre-left government of Denmark confirmed it was abolishing the “fat tax” and would not implement the planned tax on sugar. Its own officials said the “fat tax” had inflated food prices for consumers, increased costs for producers, put Danish jobs at risk and had no impact on dietary choices or obesity. In fact, many Danes had simply been crossing the border into Germany to stock up on their beloved sweet and fatty foods there, as predicted by opponents when the tax was introduced.

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The “fat tax” was a well-intentioned experiment which failed. It did not change consumer behaviour but it did, according to the Danish Food Workers Union, cost around 1300 retail and manufacturing jobs. Most supermarkets and stores have indicated they will reduce their “fatty” food prices as soon as the tax is officially abolished. They had not enjoyed having to charge higher prices to their customers because of a flawed government policy. Ultimately, it is only consumers themselves who can make the changes needed to reduce the obesity problem. It is noteworthy that the “fat tax” was implemented by the previous centre right government as right-wing parties are not normally big supporters of “sin taxes”. Equally, the tax was axed by the centre left minority government (comprised of the Social Democrats, Social Liberals and Socialist People’s Party) with the support of the far-left Red Greens. Traditionally, these parties are far more open to higher taxes on ‘harmful products’. Certainly, the Green Party of New Zealand has called for various versions of fat, sugar and soda taxes to be introduced for over a decade. Labour has made a number of supportive noises that the issue should at least be examined. The current Government does not seem to support “fat taxes” but it is worth noting it rapidly reversed its policy on tobacco displays, to use one recent example. The failure of the Denmark policy does not seem to be denting various governments’ enthusiasm to be seen “doing something” about obesity and public health. Hungary has imposed a 60 cent tax on fatty foods, plus higher tariffs on fizzy drinks and alcohol. Israel, Australia and the United Kingdom are all formally considering “fat taxes”, ironically based on the now defunct Danish model. NARGON believes that it is important that our Government learns the right lessons from the experiment in Denmark. Forcing producers and retailers to charge more for “bad” food does not change consumer preferences and behaviour. In fact, it costs everyone money and some people their jobs. Education, encouragement and incentives are much more likely to work to help people make informed, sustainable and healthy decisions about their food intake and lifestyle.


TREND MONITOR A snapshot of new trends in overseas and local markets. Convenience meals More and more convenience stores in Europe and the US sell fresh foods, hot snacks and meals to go (see pg 52 for the full story).

Indulgence Following the latest trends in Europe, look out for more premium yoghurts and desserts appearing on shelf in New Zealand.

Store security In challenging economic times, security is increasingly important. Barcoded cards are now used in Germany for selling valuable items such as cigarettes and razors.

Front of pack labels Clear nutritional information is now available on front of pack in many countries, such as on these cereals seen in Singapore.

Natural, Green, Organic The new holy trinity of all things good is coming to a store near you. If it’s natural, sustainable, organic, or carbon zero it will be popular!

december 2012 FMCG

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n i el se n

Are you serving ‘Dinner Tonight’ shoppers? Sarah Smith, senior manager FMCG, Nielsen NZ

Shoppers are looking for fresh ideas, says Sarah Smith, senior manager FMCG, Nielsen NZ.

Photo: thinkstockphotos.com

Over half a million New Zealanders are top up shoppers who are buying groceries most days. With new Shopper Missions data from Nielsen Homescan, we’ve learnt much more about who these shoppers are and how they are shopping differently when they have particular needs.This has implications for retailers and manufacturers; in terms of ranging, merchandising and promotional activity, and also for tapping into the need states of shoppers – especially on more impulsive shops. In our previous article we examined what the six shopper missions were: 1. Main Shop – A main household stocking-up trip 2.Top Up Shop – Topping up trip to replenish the pantry 3. Promotion Shop – Specifically looking for promotions and special offers 4. Special Event Shop – Buying items for a special meal or occasion/event 5. Emergency Shop – Last minute dash to buy items urgently needed/run out of 6. Dinner Tonight Shop – Ingredients for a casual meal for tonight or tomorrow. Certain grocery categories feature more prominently in particular mission types, and the motivations and shopping behaviour of customers change for these different missions. Focusing on a ‘Dinner Tonight’ mission we’ve gleaned insights into how these consumers are behaving and identified where opportunities may lie to inspire consumers and capitalise on the average $29 they are spending per trip.

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Dinner Tonight is defined as a shopping occasion specifically to purchase food for a meal for tonight or tomorrow’s dinner. This event is more likely to occur earlier in the week (Monday to Wednesday) than main shops. Households comprising singles and couples aged 45+ are less likely to encounter this need state – presumably planning better for their weekly meals during the main and top-up shops, while there is a strong bias to other adult-only households, and also families with children over 11 years. The ‘Dinner Tonight’ mission is weighted to fresh food items – with fresh fruit and vegetables featuring in 44 percent of baskets and fresh meat in 29 percent. When we index basket contents’ value share to the average basket, a number of categories heavily over-perform, such as fresh chicken and fresh meat (the former more strongly), fresh deli products and in-store bakery. The fresh fish and seafood counter takes four times the spend share it does on other missions, but vacuum-packed fish underperforms. Shoppers are prepared to treat themselves a little for ‘Dinner Tonight’; the high indexing of frozen desserts, party items and fresh dips and patés suggest budgets are allowed to be stretched and there may be an opportunity for supermarkets to capitalise on this. New World has a higher proportion of ‘Dinner Tonight’ shops than Pak’nSave and Countdown. This is the one mission where both New World and Countdown enjoy higher basket values than Pak’nSave. Shoppers say they choose New World for variety and convenience. Top up shoppers tend to like convenience; 26 percent pull meals together quickly, and they are more than twice as likely to buy pre-prepared meals at least once a week. Shoppers are also looking for inspiration for their evening meal. A very strong performer in this mission is Mexican food. This category has enjoyed 14% value growth in the latest MAT, suggesting that providing themed inspiration for shoppers can be productive. About 40 percent of household shoppers who are top-up shoppers say they enjoy being creative and experimental with food. Other national themes such as Chinese or Indian meal combinations, or simply full meal solutions with co-ordinated items could be conveniently located for easy pick-up.


recr ui tm en t

Inspirational leadership Does it exist? Kevin O’ Shannessey considers the true meaning of leadership. Over the last few months there has been a real trend for a lot of companies to prioritise “inspirational leadership” as a critical attribute when looking for a new leader for their business. Needless to say, the search for the right person has been challenging for all concerned. According to the dictionary definition, inspiration is stimulation or arousal of the mind, feelings, etc, to special or unusual activity or creativity – doesn’t really help a whole lot, so here are some thoughts that are more relevant to our FMCG industry. A theme of circumstances over the last few months has made me wonder whether we as an industry really know what inspirational leadership looks like. Surely as an industry we have many leaders that inspire and motivate the large sales and business teams across the different organisations within the FMCG industry. Discussing this topic with a few well respected leaders within the industry it has been somewhat enlightening. Some of the thoughts may be obvious – other points could provoke some thinking. Inspirational leadership is not an emotionally charged leadership style that has no substance. It is a style that reveals a real depth of character and wisdom, underpinned by the following four traits. Humility is a prominent part of an inspirational leader’s character. The decision and skill of putting others before yourself is not a natural part of many people, but is very much a part of an inspiring leader. One successful leader I spoke to recently said they preferred a smaller team so that they could spend more time developing and mentoring them. No empire building was a part of this person’s thinking! Inspirational leadership is courageous. We work in an

Kevin O’Shannessey industry that has an appetite for innovation – manager – FMCG Sales & if the FGC conference theme is anything to Marketing, OCG Consulting. go by. Innovation can also come in the style of pioneering new initiatives with our retail partners, to meet consumer needs. Following a courageous leader in this context can be a refreshing and empowering experience. A leader who has a desire and ability to lead others finds their role fulfilling and meaningful. One that is a little bit of a “pretender” struggles to keep the energised leader facade going. Consistent energy may be a great barometer of whether a leader is right for leadership or not. Lastly, a leader without a vision is a leader who lacks some purpose. If you’re in a position where you have no clear understanding on the direction your role, or the business, is going, your leader should have probably filled in those gaps. Inspirational leadership is visionary leadership. I read an online article recently that pointed to the main reason why employees leave their roles (a survey of over 19,000 exit interviews).They certainly look like opportunities where an inspirational leader could influence! The reasons were: 1. Limited career/promotion opportunities 2. Supervisors lacked respect/support 3. Compensation 4. Job duties boring/no challenge.

To summarise, be clear in your people search on the specifics of what you are looking for. A nice sounding definition such as an “inspiring leader” may in reality restrict you or even stop you from hiring the right person. The right person may well be someone that you have already met!

december 2012 FMCG

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b e ef + lam b

Award-winning NZ sausages Kim Doran, Retail Meat New Zealand

Kim Doran of Retail Meat New Zealand goes behind the scenes at The Devro New Zealand Sausage Competition.

There seems to be a competition for everything these days: pies, ice-cream, juice – you name it and there will be a set of awards to match. The Devro New Zealand Sausage Competition is one of the more established competitions. It has gone from strength to strength since its beginning in 1993 and is recognised among meat retailers as having had a significant impact on the quality of sausages in our market. Medals were given to less than 15 percent of entries this year, so it is fair to say that a medal of any colour, let alone the Supreme Award, is the mark of an extremely tasty sausage. And retailers take great pride in picking up one of these medals, recognising the commercial benefits that come with winning. One retailer recently told me that after winning a medal (not a gold, not the Supreme Award, just a medal) their customer count went up by 20%, and from that about 10% have been retained as returning customers.

The Supreme Award-winning Smoked Kielbasa.

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So, with that in mind, we recently got down to the very serious business of selecting the medallists; People’s Choice Award and Supreme Award for 2012. The process really began a week before the judging when everyone of the 450 entries from across the country was picked up by mystery shoppers. This means we can tell customers, with confidence, the product they buy on the shelf will be the same as the one our judges have tasted in the competition. Next, to ensure all sausages are tasted ‘blind’ by the judges, all the entries are repackaged to remove any identifying labels and from this point on the sausages are identified only by a number. It is then onto the judging process where a carefully selected panel comprising 50 butchers, chefs and foodwriters are given the mammoth two-day task of sampling each and every sausage. Finding the best sausage in the country is a delicate mix of ensuring it is technically correct (this is where the butchers come in), as well as having flavour and appeal for the public, which is the domain of the chefs and foodwriters. From here, we announce the category winners – these are the sausages which score the highest in each of the 12 categories before they are judged for the overall Supreme Award prize. Finding the right balance in the number of medals has always been a challenge. As the competition has progressed through the years, so has the standard of sausages to the point where marks are now so close and the standard is so high that it is hard to find a cut-off point. But, we think we’ve got it right. To achieve a medal is a real status and a real marketing opportunity, which is ultimately the whole reason butchers enter in the first place. In the end, 2012 was the lucky year for Island Bay & Strathmore Butcheries from Wellington, which took out the Supreme Award with its Smoked Kielbasa. The People’s Choice Award was won by Franklin Country Meats for its Smoked Paprika and Cheese sausage. So, next time you’re in the Capital join the crowds and try the winner for yourself – we guarantee you won’t be disappointed. 


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NOV Television Facebook Instore

DEC

JAN


FRESH & LOCAL Specialist resource writer John Clarke highlights developments in produce, fish and meat supply.

COMING ON The soft fruits; raspberries, blackberries and gooseberries, red and black currants. All the stone fruits; plums, cherries, nectarines, peaches and apricots. The first New Zealand melons and squash.

IN THEIR PRIME Fresh scallops, cockles and pipis. Flounder, mullet; all the inshore fish really. All the game meats and of course lamb. Avocados, beans, asparagus, globe artichokes, new potatoes, tomatoes – in fact all the summer vegetables and some decent garlic at last.

FALLING OFF Brussels sprouts and leeks. Most of the citrus and kiwifruit. Pacific oysters.

SHOT TO BITS

Photos: thinkstockphotos.com

Whitebait sadly. Brussels sprouts and yams. New Zealand pip fruit. The fresh seasons for orange roughy, hake and ling have ended.

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FMCG DECEMBER 2012

FISH & SEAFOOD This is the season for all those inshore species; flounder, snapper, gurnard, trevally, kahawai and mullet.

MEAT Farmers have had an average spring this year, but supply is improving at least in the short term. There is an increasing demand for free-range and organic meat products these days. Chicken in particular has seen a vast improvement in the supply of free-range product with all the bigger producers these days distributing a good range. Rangitikei chicken is a good example; these chooks are raised free-range in the North Island and have the freedom to roam and forage outside. These birds are also corn fed and are available in a wide range from skinless portions to whole chooks. As for meat from hoofed animals, Harmony foods for one has led the way with commercial quantities of top product available to the FMCG sector. All meat sold under the Harmony name is sourced from free-range farms and all animals are grass fed. There are no cages, no pens, only open pasture. As a consequence Harmony has SPCA certification for its pork and AsureQuality accreditation for its organic beef and lamb. Sheepmeat Needless to say all our sheepmeat is free-range and great buying this season. Last year’s store and prime lambs are now about done and dusted and new season spring lamb is becoming available. Store lambs are starting to be seen at saleyards, but are lighter and fetching weaker prices. There is some lovely new spring lamb out there, even if weights appear to be lighter than last year. Supply is still a little tight but the trend is easing at about $2.40 per kilo behind the same time last year. Mutton schedules are down and the trend is also easing. In fact cull ewes in

the saleyards are about half the price they were at the same time last year. Beef Local trade beef schedule prices are easing at 420-435c/kg. Farmed venison Schedules are now easing, as the season changes from chilled to frozen and the trend is falling. Ham Christmas and New Year are fast approaching and look to 100% New Zealand pork for your ham. Have a look at the range of hams from Freedom Farms, Harmony and Kiwi. As we have said before, the pigs from these producers are treated with respect and are healthy happy little pigs.

FRUIT Yes, we are coming into that fruity time of the year! Blackcurrants are in the market from now with full production over January and February. Citrus We are coming to the end of most of our local citrus varieties. New Zealand tangelos, oranges and lemons will still be around but will peeter out next month. The mandarins and navelinas are now well over. Local limes are old stock; new crop will not be available until March. Fresh raspberries are about to hit us and will be finished by April. Look also to boysenberries until early February, blueberries through to mid March, with blackberries a little later. Loganberries are always around and the very short season for gooseberries is on now. Pomegranates should be in good supply from now on as they ripen in the northern hemisphere’s fall and we tend to see them through our summer months. Redcurrants are on the way but for a very short time only – don’t you just love the seasons? Strawberries This month is strawberry month, everyone buys some strawberries in December; customers just cannot help themselves. The cherry season kicks off in all


seriousness this month, just in time for Christmas. North Island plums, nectarines, apricots and peaches will all be coming into full production, but prices over December are guaranteed to be firm. And be aware also that early season New Zealand-grown stone fruit often has a poor shelf life. South Island fruit varieties tend to hit their straps in January.

VEGETABLES Artichokes (globe) are at the height of production but start to drop off as summer really kicks in. Asparagus this month is still in good nick and production is at its peak, but will drop off from January. Locally-grown aubergines are back again in the markets, pricey but nice. Beans The New Zealand glasshouse season for the flatter varieties such as Mangere Pole has arrived and the outdoor round ‘French’ beans, (mostly Gisborne grown) should reach the market finally. Broad beans are out there but supply will tighten up. Beetroot is most plentiful from November until April. Avoid roots with

scaly areas around the top surface as they tend to be tougher. Originally the leaves were eaten more than the roots, but in New Zealand we just eat the roots; why? Capsicum prices are still very high but almost all the New Zealand-grown varieties are arriving in better volumes and it will only get better as we move further into the summer. Corn You can get fresh, early varieties of sweet corn in the market from January these days, but it will be expensive. Courgettes Our New Zealand zucchinis are back in the markets. Cucumber Plenty of kiwi-grown telegraphs around. Garlic The first of the NZ-grown garlic will arrive this month, as will the first shallots. Kumara All varieties of good quality new season kumara; Beauregard (orange, softer, sweet), Tokatoka, (yellow, firm, good flavoured), Owairaka and Northern Rose, (traditional red, very firm), will be arriving in the marketplace soon. Leek quality is variable and will only get

poorer over summer, but keep an eye out for those baby leeks as they come in shortly. Potatoes This is new potato time, but watch for greening as these early spuds go off very quickly. The first (so-called) Maori potatoes will arrive from the far north in December. Taro Varieties of taro vary in colour and size. Taro is a starchy root crop and the leaves are also edible. Taro is not grown commercially in New Zealand; all supplies are imported from the Pacific Islands. Tomatoes New Zealand main crop is all on and it will get cheaper from now to the end of February. A little outdoor fruit will start showing up in January.

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XXXBEBZDPO[ DECEMber 2012 FMCG

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F Made in NZ Buy New Zealand Made is celebrating its 25th birthday next year. To mark the occasion, FMCG talks to some of the people behind the success of our excellent local products.

rom the sun-drenched heart of New Zealand’s picturesque South Island, the warm intense aroma of handpicked Elderflowers wafts into the lazy summer air. “We capture in our flavour their delightful scent and the heritage of this wonderful region that nestles in the lee of the Southern Alps,” says Kate Addis, owner of Addmore Foods. Addmore beverages are created using the finest flowers and herbs blended together into a sophisticated flavour that is delicately scented, magically refreshing and versatile…a taste of summer in a bottle. Addmore is proud to be the pioneer of Elderflower beverages in New Zealand and after a long spell in the UK Addis grew to know this wonderful tree intimately. She explains: “As a ‘Product of New Zealand’ Addmore offers Elderflower Cordial – simply dilute with iced water or try adding to Champagne for an extra twist. There is also our ready-to-drink Sparkling Elderflower, Sparkling Elderflower Rosé and a new Sparkling Ginger White Tea & Elderflower (both single serve 330ml and table serve 750ml), which is delightful for nonalcoholics, and for the drinkers, just add to a glass of white wine for a

spritzer, or mix with vodka or gin for great martini cocktails!” Addmore’s 100% NZ grown Elderflowers are handpicked and crafted drawing on the knowledge from a team of dedicated Kiwi experts. Addmore has based its business on maintaining sustainability from day one. Natural ingredients are hand blended using traditional methods and combined with the purity of the water from the Canterbury region. Addis says: “Addmore has also added two new quintessential cordial variants to their range – NZ Apple & Elderflower and NZ Pear & Elderflower Cordials 375ml, to complement the much loved original Elderflower Cordial. To learn more contact one of our team.” Addmore Foods Kate Addis ph 021 435 337 Vikki ph 03 693 8343 elderflower@addmore.co.nz www.addmore.co.nz.

Your New ZealandOwned Quality Assurance Company AsureQuality has been operating in the New Zealand food and agricultural sectors for over 100 years. And it’s here to stay! Every day you’ll find its experienced team of 1700 experts working alongside customers to assure the

“Addmore’s 100% NZ grown Elderflowers are handpicked and crafted drawing on the knowledge from a team of dedicated Kiwi experts.” 20

FMCG DECEMBER 2012


made i n N Z safety and quality of food being produced for millions of people worldwide. Its skilled staff and extensive accreditations enable it to audit, inspect, verify and certify food quality and management systems from the farm right to the supermarket shelf. Passionate about protecting the NZ brand, you’ll also find the company working to safeguard New Zealand’s unique biodiversity and pastoral economy. Harnessing all of its resources AsureQuality provides a highly trained team of biosecurity professionals, which is on call 24/7 to participate in biosecurity response activities throughout the country. Its commitment to be the best partner for food safety and biosecurity services to the country’s food and primary production industries is undeniable. Dedicated scientific and technical experts that lead in their fields both in NZ and internationally, are backed by state of the art information technology to ensure food and primary production industries can compete with confidence in any market worldwide. Michael Thomas, CEO says the company takes its customer partnerships very seriously ensuring that expectations are always met. “AsureQuality strives to expand ideas and opportunities, converting them into innovative and customerfocused products and services. Our aim is to deliver integrated cost effective and efficient services across

the supply chain that enhance our customers’ growth opportunities, and ensure they excel in food safety standards globally,” he says. The company consistently carries out targeted investments in laboratory technology to support its customers’ expansion into export markets, and demands for faster turn-around-times. These have included a 819 square metre refurbishment of its Lynfield site in Auckland, the opening of a new export wine certification laboratory following formal recognition by the NZFSA to analyse wine destined for the EU, and just recently, it announced it has commenced work on a major expansion of its food testing laboratory in Christchurch (see also pg 44 for more details). The expansion in Christchurch represents a significant investment for AsureQuality in the South Island, and a vote of confidence in one of New Zealand’s most productive regions.

AsureQuality’s world-class contaminants testing laboratory in Wellington continues to provide an unmatched testing expertise. Its fleet of instrumentation includes the only three commercial HRMS (high resolution mass spectroscopy) instruments to be found in New Zealand. These instruments allow the detection of extremely low levels of dioxins, PCBs and other chemical contaminants of concern in the environment. According to Dr David Stirling, technical manager for AsureQuality’s Wellington Laboratory, these allow the detection of persistent organic pollutants down to part per quadrillion levels in food or environmental samples. “That’s the equivalent of being able to find one second in 30,000 years!” AsureQuality is a stateowned enterprise owned by the NZ Government. Its reputation as a leading quality assurance provider is backed by its scientific testing

DECEMber 2012 FMCG

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Your New Zealand-owned food testing company AsureQuality has been operating in the NZ food and agricultural sectors for over 100 years. We are a leading provider of independent auditing, testing and certification services along the supply chain. Our routine and high-end testing capability, technical advice and fast, accurate test results support our reputation as a quality and trusted supplier of laboratory services. Talk to us today about our custom-built solutions and comprehensive testing services including: sFood and Environmental sChemistry (including NIPs and Allergens) sMicrobiology AsureQuality farm and livestock services.

capability and portfolio of national and international accreditations. It belongs to New Zealand. It’s your quality assurance company, and we all benefit from its success. See www.asurequality.com for more information.

:HDOOEHQH¿W from our success

freephone 0508 00 11 22 22 FMCG DECEMBER 2012 www.asurequality.com

Celebrating summer with a Kiwi Icon New Zealand in the summertime. The happy sounds of kids capturing the last rays of sun as the sunset drifts up from the beach and families and friends gather to celebrate yet another long, hot day. Entertainment, Kiwi-style is a re-

laxed affair. A cold refreshing drink, the fire of a barbeque is lit and usually generous bowls of crackers and dips are set out for everyone to enjoy. It’s inevitable today that in almost every fridge a bowl of one of Lisa‘s delicious hummus products will be found. “Lisa’s is one of the brands that define the way we enjoy our lives,” says Gal Pyzhanov, brand manager LHF. She explains: “Like so many companies Lisa‘s started up as a small one-woman band, working out of a home kitchen. It is hard to imagine that one day a personal passion, might


made i n N Z

Lisa‘s has been a major driver and builder of what is today a $50 million dollar category. become a household brand name representing a relaxed summertime way of life in New Zealand. Lisa‘s has been a major driver and builder of what is today a $50 million dollar category.” It is no coincidence that Lisa‘s holds this position. Since its early days Lisa‘s has focussed on offering the freshest possible product. From the very start Lisa‘s used fresh herbs as a core ingredient in its dips. Still today, at 7am each morning, a truck arrives from Cambridge delivering fresh parsley, basil, coriander and other herbs used through a product range of over 30 different intriguing flavours. Whilst Lisa‘s original hummus remains the most popular of all the products on offer, today its product range spans over 30 lines including its new Vege+ range of vegetable based dips, a feta based range, a toppings range with the smoothest hummus ever and of course the

standard favourites we‘ve come to know and love. “Surprisingly this category is far advanced on what you might find across the ditch, or in the US. Dips are a way of life for Kiwis and Lisa’s is the brand that has made it so,” says Pyzhanov. Today Lisa‘s works out of sparkling new premises in Henderson and employs over 100 people. Workers at the plant are dressed like Eskimos because all the products are produced in chilled conditions to ensure freshness. The team at Lisa’s are young, enthusiastic and proud. Like most of New Zealand today they are an eclectic bunch of people from every corner of the earth and they bring a fresh spirit of optimism and an uncomplicated dedication to fresh quality food. More importantly, they have been constantly bringing fresh ideas from around the globe to our market. Kiwi

taste buds have evolved and today we are more open than ever to fresh international food experiences. “Lisa’s has been a leader in innovative new food ideas since the very start and they don’t look like slowing down. Only 15 years ago Lisa‘s was sold in plain pots labelled with blue felt tipped pen on the lids. Today‘s product might look somewhat smarter, but the wholesome fresh quality of the hummus and dips remain true to the original from Lisa‘s home kitchen,” says Pyzhanov.

Do you have a ‘Made in NZ’ story to share? Email: editor@fmcg.co.nz Visit buynz.org.nz to find out more about the membership benefits for retailers and manufacturers.

DECEMber 2012 FMCG

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Snack time FMCG looks at new developments in the packaged snack food industry, from salty to sweet.

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Photos: thinkstockphotos.com

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FMCG decEMBER 2012

re health, convenience and a little indulgence still the key trends in snack foods? General Mills brand manager Brad Tilby, explains. “Routine wholesome snacking continues to expand in New Zealand as people grow more time poor. Gone are the days of the three square meals, with people resorting to grazing during the day. Shoppers are trending toward muesli bars as a ‘pick me up’, easy refuelling, or a treat/reward in their day. There is a general push to live a healthy life style, but people still like a little indulgence. Taste still remains the number one driver of sales. Shoppers are demanding healthier products and better information. There is a lot of scepticism around claims and information overload on packs. While the shopper is willing to pay a premium price for healthy options, there has to be a clear benefit to them.” The main growth driver in the category has been through adult muesli bar snacking, says Tilby. There have been a number of new entrants in the category and the adult segment has evolved a great deal over the last five years. Based on overseas markets, there is still room to move in this segment with the shopper always looking for the next best concept. The snacks category is an impulse category and the key drivers of category stimulus come from

new NPD to the market and sales promotions. General Mills has Nature Valley Muesli Bars in NZ supermarkets. Tilby says: “Over the past 12 months we have added two new flavours to our Nature Valley core ‘Crunchy’ range. The first product is Maple Crunch, which we launched in April and we have just recently launched Nature Valley Ginger Snap. “Nature Valley’s success has been built off bringing true NPD to the market. The unique two-bar crunchy pack has led Nature Valley to be one of the largest brands worldwide in Wholesome Snacking. This has given us the opportunity to cherry pick the very best NPD to bring to New Zealand with proven in-market results. Maple Crunch and Ginger Snap were key skus where we identified there were gaps in the New Zealand market and would add incrementally to the category. “Maple Crunch launched in April 2012 and has seen great success with strong backing from the accounts, and shoppers really buying into the unique flavour. Nature Valley Maple Crunch ranks as the fourth best NPD launch for 2012 with only six months in the market (Total Muesli and Nut Bars – Aztec data 30/9/2012). Nature Valley brand has benefitted from the launch, up 8.7% MAT and growing ahead of the category at 0.8% growth MAT (Total


snackfoo ds

THE BREAKDOWN Current MAT to 04 November 2012

Muesli and Nut Bars – Aztec data 30/9/2012),” says Tilby. Ginger Snap is still very new to the market, but brings a heritage New Zealand flavour to the Muesli Bar aisle.

ABE’S ABE’S Bagel Crisps (150g) are baked using fresh bagel dough and contain no artificial colours, flavours, preservatives, or added MSG. Aaron Shaw, national sales manager explains: “The unique snacks are baked, not fried and contain at least 50% less fat than regular potato chips, making them the perfect choice for any snacking occasion. Roasted Garlic and Marlborough Sea Salt remain the most popular within the range. The launch of Caramelised Onion & Balsamic Vinegar, and Sea Salt & Vinegar, last summer has changed the way consumers use bagel crisps and has encouraged new shoppers to the brand. As a result, ABE’S Bagel Crisps have grown by +59% this year. On 1st

October 2012 we launched the delicious Wood-fired BBQ flavour. “Historically, bagel crisps have been served on platters or with a dip. The newer highly flavoured variants can be eaten straight from the pack, no dip required,” says Shaw. The ABE’S Bagel Bites’ range (8x15g multipack) now includes two sku’s for kids in Pizza and BBQ flavours. They have the same healthy aspects as bagel crisps and are baked right here in NZ.The mini packs are great for portion control and kids’ lunchboxes. “The range has experienced +17% growth, which has been driven by the launch of the kids’ bites,” says Shaw. “For parents they tick all the boxes and we even avoid MSG and palm oil. The kids’ market is littered with products full of artificial preservatives and flavours and many are made overseas.” Source: ABE’S ex factory sales (Jan – Oct 2012)

Total Snackfoods: $310.222m Value % Chg vs YA 1.3 T. Bread Snacks: $1.105m Value % Chg vs YA -7.8 T. Corn Chips: $34.646m Value % Chg vs YA -1.8 T. Extruded Snacks: $35.528m Value % Chg vs YA 3.9 T. Meat Snacks: $3.271m Value % Chg vs YA 21.1 T. Other Cereal Snacks: $35.839m Value % Chg vs YA 2.9 T. Packaged Nuts: $56.440m Value % Chg vs YA 11.9 T. Potato Chips: $129.547m Value % Chg vs YA -2.5 T. Shelf Stable Dips: $3.580m Value % Chg vs YA -2.0 T. Unprocessed Snack Foods: $10.266m Value % Chg vs YA -5.6 Total Lunchbox Snacks: $133.373m Value % Chg vs YA 0.1 T. Baked Bars: $30.243m Value % Chg vs YA 5.5 T. Cereal Bars: $10.825m Value % Chg vs YA -4.8 T. Cheese: $13.300m Value % Chg vs YA 10.5 T. Fruit Novelty: $12.453m Value % Chg vs YA 19.5 T. Indulgent: $329,380 Value % Chg vs YA -12.2 T. Muesli Bars: $40.316m Value % Chg vs YA -7.6 T. Nut Bars: $25.798m Value % Chg vs YA -3.2 T. Tucker Box: $109,222 Value % Chg vs YA -5.6

* Nielsen New Zealand ScanTrack (Databank)

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Healtheries James Ford, senior product manager – food says: “At Healtheries, we believe feeling healthy should be an easy habit for everyone. Within snacking, we offer a range of products to suit the whole family that have better-for-you benefits, particularly around ‘less fat’, which is a key factor consumers want, as well as tasting great.” The Healtheries Kidscare multipack range is worth over $4m and caters for 5-12 year olds as a lunchbox option or handy snack on the go – with 65% less fat than regular potato chips and no artificial colours or flavours, it is definitely a healthier choice. There are a range of formats: Rice Wheels, Potato Stix, Corn Tubes and Rice Rounds in a selection of flavours. Our newest addition, in October 2012, to the Kidscare family are Rice Wheels 140g sharepacks, which are perfect for parties and sharing with friends and family. The Kidscare packaging is also getting a refresh, with a great new look that is designed to have broader appeal across the 5-12 year age group. Healtheries Grain Wafers are a great snack option with three tasty flavours in Rounds (Sour Cream & Chives, BBQ Chicken, and Sea Salt & Cracked Pepper) and the perfect bread replacement and base for toppings with our Squares (Grains & Sunflower Seeds, Five Grains, and Wholegrain Rice). The range is wheat-free (endorsed with the coeliac logo) and has no artificial colours 26

FMCG decEMBER 2012

or flavours, or added MSG. New to market in October 2012 are Grain Wafers Wholegrain Corn, which is a tasty option on the popular square thin base, 97% fat-free and low in sodium. Healtheries Potato Bites are the perfect alternative to regular potato chips, with only 8% total fat and no artificial colours or flavours, or added MSG. In addition to the two current great tasting flavours, Sour Cream & Chives and Sea Salt, now available is new Potato Bites Sea Salt & Balsamic Vinegar, which has a delicious sweet tangy flavour, as well as being gluten free.

Kellogg “The snack category is valued at $116m (YTD) and growing at 0.9%*,” says Almari Du Toit, category & shopper insights manager. “Kellogg’s launched a range of new products in 2012, each of which delivered against different consumer need states to drive news and relevance in the nutritious snack category,” she says. Building on the growing global trend of consumers moving towards more “Natural” foods Be Natural launched two nut bar variants. Be Natural Nut delight, a delicious blend of nuts with a hint of

honey, high in protein, preservative free and a source of fibre.The second Nut Bar variant, Almond Apricot, is a tantalizing combination of apricot pieces, almonds and coconut that is not only high in fibre but also low in salt. Both variants contain no artificial colours or flavours. She adds: “The launch of LCMs Split Stix Mash-Ups adds to the popular LCMs’ snack bar range. A delicious snack made from a mixture of Rice Bubbles and Coco Pops with a chocolaty base, LCMs Split Stix Mash-Ups delivered over 8% in dollar growth to the brand YTD. LCMs Split Stick Mash-Ups contain the goodness of rice and no artificial colours.” Du Toit adds: “In the last few weeks Kellogg’s Special K has introduced a delicious new range of Nut Bars to the snack category from New Zealand’s leading shape management cereal. Special K Nut bars feature a blend of nuts, fruit & Special K cereal on a base of chocolate. In a perfectly portion-controlled serve of only 140 calories per bar, they are a great option for shape-managing women. The range consists of a Low GI Cashew & Mixed berry variant and an Almond & Apricot variant that is a good source of fibre,” she says. * Aztec data 28 Nov 2012


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Peckish “New Zealander’s love Peckish Rice Crackers – Peckish is a wow product that has taken New Zealand by storm,” says Janine Dench, senior business manager brandlines. She explains: “In March 2012 it was launched into Countdown, completing full supermarket distribution. Since this launch Peckish Rice Crackers has continued phenomenal growth (139% dollar growth latest MAT to 14/10/12). Peckish crackers are a proven high volume mover and are now the number one selling rice cracker in total key accounts – accounting for 39.6% dollar market share*. Out of the top 25 sku’s within the rice cracker category Peckish Rice Crackers holds the number one (Original), two (Sour Cream & Chive), three (Tangy BBQ), four (Cheddar Cheese) and five spot (Sea Salt & Vinegar) and the remaining three variants sit at place nine (Sweet Chilli), ten (Lime & Black Pepper) and 13 (Wasabi).” Dench says Peckish Rice Crackers’ market share is 39.6%*, which is driven by the simple love consumers have for this high quality product; the thinner, lighter and crispier attributes. “It is not often New Zealand sees products that tick all the boxes; great retailer margin, competitive shelf and promotional pricing, strong in-store support, and quality product that consumers love. This was all confirmed when Peckish Rice Crackers was awarded Gold for Best New Product at the 2012 NARGON Awards. Peckish Rice Crackers has exciting times

ahead for both the grocery trade and consumers.” * Aztec data TKA latest quarter to 14/10/12

Griffin’s Foods “The Snack Foods’ category is worth $307m in the last 12 months (MAT 28/10/12) and is showing positive growth at +1.8%*,” says Jodie Keenan, brand manager – salty snacks. Kiwis love to snack with more than 21,600 tonnes of snack foods consumed in the last year (MAT 28/10/12). “In particular, we love our potato chips and cereal snacks, which account for 65% of Total Snack food sales in the last year,” she says. “There is, however, a notable growth area within the category in Packaged Nuts; growing at 13.4% in value and 7.1% in volume in the last year (MAT 28/10/12). Griffin’s Foods is the second largest manufacturer in the Salty Snacks Category (19% value share MAT 28/10/2012), with a wide range of tasty products available in all NZ supermarkets.” The Salty Snacks Category has

five key segments: Everyday Potato, Premium, Cereal, Multipacks and Nuts. Griffin’s Foods has products in each of these segments and brands include ETA Spuds (Everyday Potato), ETA Kettles and Uppercuts Delicut & Tapas (Premium), ETA SKOF (Cereal), ETA Good Bites (a multipack offering that is baked not fried and great for the kids’ lunchboxes), ETA Nuts, and Nice & Natural Nutricious (Nuts). So what are the consumer trends in this category, in Keenan’s experience? “Over the past nine months there appears to have been distinct polarisation across the Salty Snacks Category, with Chips being in -4.6% dollar decline in the quarter, whilst Nuts is in +10.6% growth (Qrt, 28/10/2012),” she says. “Chips has seen some aggressive promotions across all segments which have not corresponded to the required volume uplift to achieve overall CategoryValue Growth. Nuts, however, via larger pack sizes and its value offering, situated in high foot traffic areas such as produce, is benefitting from its healthy associations and has enjoyed significant value growth.” Fraser Shrimpton, Griffin’s Foods’ marketing manager – wrapped & salty snacks says: “The Wrapped Category is valued at $132.3m and is relatively flat at 0.5% value growth MAT*. However, in the latest quarter the category has started to show signs of more positive growth at +2% in value and +5.5% in volume. The strongest growth segments are

decEMber 2012 FMCG

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cate go r y c h e c k Muesli Bars at +17.4% value growth followed by Fruit Novelty at 12.8% growth in the latest quarter*.” Griffin’s Foods is the second largest manufacturer in the Wrapped Snacks Category with 19.6% value share and growing well ahead of the category at 19.8% in the latest quarter*, says Shrimpton. Griffin’s Foods has two key brands in the Wrapped Category. Shrimpton explains: “Nice & Natural is our largest brand and the biggest brand in the category with 18.2% value share MAT*. Nice and Natural has a wide range of delicious Nut Bars, Muesli Bars and Fruit Novelty products made with the best ingredients to help you feel good to go. And in August this year we launched a new range of Griffin’s Muesli Bars.” He adds: “Consumers in the Wrapped Category often get bored of the same flavours and formats so variety and new news are key in this segment to stimulating category performance. The category is underpinned by a need for the inherent wholesome goodness of natural ingredients like oats, grains and nuts in a convenient format, however the yum factor is also important. A large number of shoppers who buy from this category are looking for products they can put in the kids’ lunchbox and know they will love to eat. “In August 2012 Griffin’s launched a new range of Muesli bars. New Griffin’s Muesli Bars are a delicious combination of rolled oats, cornflakes and puffed rice, mixed together with some of our favourite Griffin’s biscuit bits. The range includes: • Hundreds & Thousands • Stripes • Krispie • Choc Chippie.” Shrimpton says: “The launch has been a great success and delivered true innovation to the category. All Griffin’s Muesli Bars are ranked in the top 35 28

FMCG decEMBER 2012

sku’s in the category (four weeks to 28/10/2012) with Hundreds & Thousands as the #1 ranked Muesli Bar and the #3 Wrapped Snack (four weeks to 28/10/2012)*. Since launch we have sold over 585,000 packs, equivalent to almost 2.4 million bars! That means more than 25,000 individual bars have been eaten everyday on average since launch.” *Aztec Data to 28/10/2012

Prolife Foods Mother Earth lunchbox snacks are suitable for all age groups. Fruit Sticks are aimed at the youngest audience and their sales performance is more than satisfactory, says Lyn O’Sullivan, grocery brand manager. “The perfect bar size for the little ones (19g) actually attracts young females too, who appreciate the portion control. “Baked Oaty Slices are a winning formulation of wholegrain cereals and fruit and/or chocolate. This year the fifth original Baked Oaty Slice, Cranberry & Manuka Honey, and two 70g Single Serves were added to the range. There are also four Kiwi Classics, a sub-brand of the same range. As the name suggest, Kiwi Classics deliver on iconic NZ snacks, such as, Anzac and Afghan. The most popular variants are Apricot Choc, followed by Afghan, and Raspberry & White Choc.” She says: “The newest addition to Mother Earth bars is the Multigrain Cereal Bar, a bar for people who want to make healthy choices and enjoy their snack. Made with 25% multigrain cereals, these bars boast Omega-3 and fibre content. With real fruit in the delicious filling, they are worth every bite. The Healthy Food Idea endorsement led to a successful advertising campaign, and the bars have the Heart Foundation’s Tick of Approval.” She adds: “In Mother Earth’s 150g nut range, classic nuts (one nut type) and Deluxe Mixes are as popular as ever. This year two new Deluxe

Mixes were added, Energy Booster and Walnut & Apricot, and the new packaging of all Deluxe Mixes was rolled out.A completely new addition to the range was two flavoured nuts, Chilli & Lime Cashews and Honey Roast Mixed Nuts.Very moreish!”

Kraft Foods Kraft Foods’ launch of the belVita Breakfast biscuits range in September has led the way in establishing a new breakfast segment in the biscuits category. belVita Breakfast biscuits is a new range of biscuits specially designed for people who cannot fit breakfast into their rushed morning, explains a spokesperson. The range comes in four flavours (Fruit and Fibre, Honey and Nut, Crunchy Oats, and Milk and Cereals 300g), contains five wholegrains, and provides four hours of sustained energy release when consumed with a glass of low fat milk. “Enjoy belVita Breakfast biscuits as part of a balanced breakfast with a piece of fruit and serving of dairy,” says the spokesperson. “Kraft Foods also launched Oreo 100’s and 1000’s 106g in October, injecting a new variety and some fun to the cream and jam filled biscuit segment and judging by early results consumers love them. Be sure to stock up on Oreo 100s and 1000s for when the kids head back to school and belVita Breakfast biscuits


snackfoods

for when the adults head back to work!”

to shop the category, contributing to overall category growth.”

Sweet treats

Master the magic of the Marvellous Creations!

Among new products’launches in NZ supermarkets in the last 12 months are The Natural Confectionary Company Jelly Joiners and Pascall Chocs (Marshmallow Bites covered in Cadbury Milk Chocolate). Brand manager Will Radford says: “The Natural Confectionery Company Jelly Joiners have introduced true innovation into the category. A product where you combine two flavours to create a third is a first for the Candy Category and has driven significant results for The Natural Confectionery Company (TNCC). After 12 weeks TNCC Value % growth was more than double the family bag segment (Nielsen ScanTrack).” He adds: “Pascall Chocs has leveraged a perfect partnership combining Pascall Marshmallow and Cadbury Milk Chocolate. Pascall Chocs has been incremental to the candy category driving 4% RSV (Nielsen ScanTrack). By focusing on driving the marshmallow segment in a nontraditional everyday consumption occasion, Pascall Chocs has also been incremental to the marshmallow segment within Candy. Consumers are continually seeking innovation in the Candy Category. By providing new products to the category, consumers are more enticed

Cadbury Dairy Milk Marvellous Creations is the newest addition to the Cadbury Joyville family. “It is a true multi-sensory experience that injects fun and excitement into chocolate for consumers. Its uniquely shaped pips and different ingredient combinations are out of the ordinary; a refreshing innovation to the confectionery category,” says a spokesperson. “Adding to this, research shows 59% of consumers would purchase Cadbury Dairy Milk Marvellous Creations on top of other snacking products in their basket (Food for Thought Qual. research, March 2011 & Colmar Brunton Quant. research July 2011), resulting in incremental category growth. “Starting from its packaging and randomly-shaped pips, the journey is heightened further when taking a bite and being delighted with the delicious flavour and texture explosions, which last until the very last mouthful. Available in both bars and blocks with three exciting flavours of Jelly Popping Candy Beanies, Jelly Crunchie Bits and Peanut Toffee Cookie, Cadbury Dairy Milk Marvellous Creations is an absolute crowd pleaser.”

Increase your Shop Ability.

How & why people buy - what it means for your business. ʇ Shopper Research ʇ Category & Channel

Development

ʇ Shopper Marketing Strategy ʇ Business Strategy ʇ Performance Improvement ʇ Training ʇ Capability & Measurement ʇ Structure & Process Change ʇ Retailer Relationship

Strategy

shop-ability.com Annette Piercy Group Account Director NZ Ph +64 27 300 8010 annette@shop-ability.com

decEMber 2012 FMCG

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Back To School What’s top of the back-to-school shopping list? FMCG talked to some of the suppliers to NZ supermarkets.

P

encils, drink bottles, sun hats, lunch boxes and wholesome snacks . . . getting ready for the start of a new school year can be overwhelming for kids and parents alike. So get ready for those shoppers who will be picking up most of the essential items for school in the next few weeks. Croxley sells 12 brands into New Zealand supermarkets and is launching 100 new Warwick products between now and March 2013 to create a unique one-stop offering for consumers. Warwick is the market leader in exercise books and is expanding its product offering into the general stationery category with a range of new economy products for the home and office. “It makes good sense for our grocery partners to consolidate many skus under one brand and it makes good sense for Warwick to build on our brand recognition,” said a spokesperson. Bringing together such a diverse range of category products under a single brand is the largest undertaking in the category for many years. The end result is a very strong, extensive

30

FMCG DECEMBER 2012

and compelling retail product range all branded in the new distinctive Warwick livery. The packaging has been designed to create a powerful in-store experience and each product displays a unique humorous quip and productspecific design patterns. This follows the trend that consumers are not only looking for economy value products, but expect some brand experience. “Consumers recognise and trust the Warwick brand and it’s the right time to launch a practical solution for the trade and the consumer,” explained the spokesperson. Warwick is owned by Croxley, one of New Zealand’s leading diversified wholesale, distribution and manufacturing companies.

Healthy snack options Freedom Foods offers a variety of healthy breakfast cereals and nutritious snacking options for kids. Freedom Foods Ancient Grains Super bar is the newest nut-free lunchbox solution available in New Zealand. “The chewy texture with the mix of puffed quinoa, puffed millet, cereals, seeds and fruit pieces

is a lunchtime snack that can be enjoyed by all,” says Michael Bracka, CEO Freedom Foods Brands. Freedom Foods Ancient Grains Super bar is free from allergens like gluten, nuts, wheat and dairy and is also free from anything artificial. Also new in the New Zealand market is the Gluten Free & Nut Free Muesli bar. Much like the Ancient Grains Super bar, the Gluten and Nut Free Muesli bar is also free from anything artificial and is made with a mix of cereals, seeds and fruit. They are the perfect lunchbox treat or on-the-go snack! With a world-leading, state of the art, completely nut and gluten-free facility in New South Wales, Freedom Foods is one of the only companies in Australia with the ability to offer consumers a truly nut-free range of products. Freedom Foods believes that they haven’t even scratched the surface yet. With innovation being a large part of the company’s success, they say that they will continue to satisfy consumers and retailers with exciting new product developments in the coming year. The severity of nut anaphylaxis has led to a critical removal of nutbased products from schools, including school lunchboxes. This has subsequently encouraged consumers


FREE FROM THE THINGS YOU DON’T NEED

Freedom Foods NUT FREE Bars see

174% Value Increase in Progressive  COMPLETELY NUT FREE

 THE SAFE LUNCHBOX ADDITION  MADE WITH REAL FRUIT

 NO ARTIFICIAL COLOURS OR FLAVOURS

Nut allergies in New Zealand are the most common with over 40,000 New Zealanders suffering from Anaphylaxis!** In the Health Food Category, Freedom Foods are enjoying growth on the simple philosophy of wholesome, nutritious, healthy foods with nothing to hide that also addresses consumers with special dietary requirements. Through high quality, great tasting foods which are ‘free from’ the artificial ingredients found in so many products on the supermarket shelf, Freedom Foods will continue to deliver on ‘better for you’ products for all consumers to enjoy. To stock Freedom Foods products please contact us on 0800 448 725 or visit http://www.freedomfoods.com.au/Buy-Our-Stuff/Around-the-World.aspx. *Source: Aztec (Progressive Freedom Foods Nut Free Bars $ Growth YA QTR to 04/11/2012) **Source: www.allergy.org.nz

*


feat ure With a world-leading, state of the art, completely nut and gluten-free facility in New South Wales, Freedom Foods is one of the only companies in Australia with the ability to offer consumers a truly nut-free range of products. to shop for nut-free snacks for their children’s lunchboxes as this ban becomes nationally enforced. Bracka comments: “Freedom Foods has also seen a recent and increased interest and support of gluten-free diets, even for consumers who are not diagnosed coeliac. In addition to this, continued consumer scepticism over artificial ingredients in food has led to consumers seeking products from companies like Freedom Foods, with clearly disclosed product ingredients, who proudly use all natural, Australian ingredients.” Anaphylaxis to nuts is a serious public health issue and is on the increase, which is why the support of a ‘nut-free playground’ is being implemented in schools. Not only is this a major challenge for parents, it presents great opportunities for retailers to develop dedicated nut-free sub-segments of their snacking and lunchbox ranges. Freedom Foods believes it is important to recognise that anaphylaxis has now become a mainstream issue and it is not only for those who may have an allergic reaction. With schools needing to be alert and prepared for nut allergies, nut-free snacks have now become essential in kids’ lunchboxes. Bracka adds: “Expanding on a premium ‘free from’ portfolio, Freedom Foods has also recently launched three innovative and successful selling breakfast cereals and snacks in the Australian market – Blushing Banana Berry Crunch, Berry Good Delight Bar and Norganic Organic 32

FMCG DECEMBER 2012

Ancient Grains with Amaranth and Millet. All of these new and innovative products are being heavily supported with marketing initiatives such as ongoing public relations, print and online advertising, promotions and social media.”

Healtheries’ lunchbox fillers James Ford, senior product manager – food says:“Healtheries Kidscare snacks are perfect for school lunchboxes, with multipacks in a range of formats that kids love and mums know are healthy. They taste great and have 65% less fat than regular potato chips, with no artificial colours or flavours, and no added MSG. There are also glutenfree and dairy-free options within the range. The Kidscare range consists of Rice Wheels, Potato Stix, Corn Tubes and Rice Rounds in a selection of flavours, with annual total supermarket sales of over $4m, which puts the Kidscare brand in #1 position within kids’ multipacks and is definitely a “better for you” option for the lunchbox or a handy snack on the go. “The exciting news for Kidscare this year is a packaging refresh with a great new look that is designed to have broader appeal across the 5-12 year age group. All the products remain with the same great taste and formula, but the fresh new look really helps to make the packs stand out on shelf – with “snack facts” in a prominent position to highlight healthy benefits to parents, and appealing designs for kids. “Also, watch out in the new year for

fantastic back-to-school promotions that have been developed to drive sales in store with cool prizes for kids. This is just another way to continue to grow sales for this popular kids’ snack brand, so the key will be making sure shelves are fully stocked to capitalise on this opportunity.”


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cate go r y c h e c k

It’s BBQ season! FMCG tracked down a few interesting innovations and family favourites.

S

teaks, saussies, burger patties, chicken and even mushrooms are going to be in big demand for outdoor entertaining and relaxed BBQ meals over the next few months. Ingham is gearing up for another solid summer with its leading range of chicken products, perfect for the barbecue. Retail sales manager Jerem Wylie says Ingham is constantly developing and rolling out new products and flavours to support customer demand, with a number of new products

hitting the shelves throughout the barbecue season. “Our popular barbecue products range from fresh and frozen primary cuts, to our convenient value enhanced and further processed products. All are developed with quality, taste and versatility as a prerequisite, ensuring delicious easy options for summer dining. From fresh Chicken Kebabs and Butterfly Chicken to the convenience of packaged frozen Chicken Burgers, there is an Ingham product for any occasion,” he says. “Last summer’s Ingham Butterfly Chicken promotion delivered over 240% sales growth during the campaign period according to Aztec data, showing that chicken remains a real favourite on the barbecue. “Whether primary, value enhanced or further processed, chicken offers versatility in preparation and presentation, delivering exceptional consumer choice.”

Meadow Mushrooms Mushrooms and BBQ’s are a match made in culinary heaven. The BBQ is the ultimate combination of easy open cooking, social interaction and versatile fare. And the champion of versatile fare and easy cooking is surely the humble 34

FMCG decEMBER 2012

mushroom. Simple to prepare and delicious in taste, mushrooms not only pack a nutritional punch, being high in selenium and some B vitamins, they also are low in fat and have minimal calories, which make them perfect as a meal on their own, or as a side dish. The BBQ is the perfect piece of equipment for cooking mushrooms. Because mushrooms contain a high percentage of water they remain moisture under high, direct heat. As they lose moisture the flavour of the mushroom (and anything you’ve put on them) is intensified. Steak and mushrooms are an enduring favourite, but barbecuing mushrooms with sweet chilli sauce or blue cheese is a way to completely change your flavour combinations with minimal effort. Mushrooms are New Zealand’s third most popular vegetable, which means that they are already a firm favourite in shopping trolleys. Their availability all year round and versatility in flavour partners and cooking styles further strengthens their loyal following. Meadow Mushrooms are a locally grown fresh product from Canterbury, based on a sustainable production system, supplying a full


bbq produ c ts THE BREAKDOWN Current MAT to 04 November 2012

range of loose and value added lines to satisfy strong customer demand. Look out for Meadow Mushrooms to jazz up your BBQ occasion!

Blackball West Coast-based Blackball Salami produces a wide selection of fresh sausages. Owner Debbie Russ says: “Our flavours are traditional beef, pork and venison and we have garlic, beef breakfast sausages, bratwursts and also spicy sausages, such as Hungarian, Cumberland, Italian, and Spicy Pork. The sausages are 100% NZ Lean meat and are great cooked on the BBQ.They are available in the South Island at many New World stores, Pak’nSave and Fresh Choice supermarkets as well as Moore Wilson in Wellington, Porirua and Masterton. “We have premium venison patties that are also 100% NZ meat and these are perfect for burgers, or the BBQ.These are only available online at the moment but we would like to see these in supermarkets. “Our bacon is the tastiest bacon around, hot or cold smoked using natural manuka wood chips, made from pure NZ pork with no added water.

Total Frozen Fish: $69.788m Value % Chg vs YA 6.3 T. Frozen Fish Fillets: $27.970m Value % Chg vs YA 5.7 T. Frozen Other Fish: $34.869m Value % Chg vs YA 7.5

T. Whole Chicken: $29.686m Value % Chg vs YA -9.3 T. Whole Other Poultry: $244,678 Value % Chg vs YA 1.6 T. Whole Turkey: $3.528m Value % Chg vs YA -9.5

Total Frozen Poultry: $106.025m Value % Chg vs YA -2.5 T. Pieces Chicken: $27.873m Value % Chg vs YA 6.8 T. Pieces Other Poultry: $263,383 Value % Chg vs YA 22.2 T. Processed Chicken: $43.071m Value % Chg vs YA -3.2 T. Processed Other Poultry: $1.359m Value % Chg vs YA 29.6

T. Frozen Meat: $22.432m Value % Chg vs YA 3.9 T. Prepacked Bacon: $133.644m Value % Chg vs YA 1.0 T. Prepacked Sausages/Sausage Meat: $46.917m Value % Chg vs YA -1.7

* Nielsen New Zealand ScanTrack (Databank)

Choose between streaky, loin, or dry cured. As an added bonus all these products are MSG and gluten free. “We are well known for our black pudding, which has featured on a few television programmes. This can be heated up on the BBQ to add something different to your table. “We have a shop at Blackball and

Blackball is a very interesting town, well worth a visit over the summer holidays. “Our website is easy to use for online orders. We send orders all over NZ and these can be delivered to your door the next day, provided it’s not a rural delivery address,” says Russ.

The legendary Blackball Salami Company is famed for producing some of New Zealand’s finest old-fashioned salamis and top quality speciality smallgoods. Using only the best lean NZ meats, the boutique West Coast butchery handcrafts a superb array of MSG & Gluten free products. Our range includes venision, italian and original salamis, smallgoods including chorizos, cabanas, biersticks and manuka smoked bacons and a selection of delicious gourmet sausages and patties. Purchase online or from leading supermarkets and speciality food stores. BRONZE MEDAL - PORK in the Great NZ Sausage Competition 2011 Blackball Salami Co. > ph (03) 7324111 > www.blackballsalami.co.nz

decEMber 2012 FMCG

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cate go r y c h e c k flavour for summer: Peri Peri. “Ideal for easy entertaining as a starter or appetizer we have Tegel Tenders – succulent chicken tenderloins, marinated, on a special Tegel branded Yakitori stick. “The Tegel Ready for the Grill range is well liked by shoppers for its convenience, value and authentic flavours. Along with the new products, there is a new bright look being launched for the range.There will be a strong TV advertising campaign from January to support Tegel chicken on the barbeque,” says Galbraith.

Photos: thinkstockphotos.com

Tegel To drive sales this summer, Tegel is bringing new products and new flavours to the Kiwi BBQ under the Tegel ‘Ready for the Grill’ brand. “This brand is worth $6.5 million (at TKA, MAT 21/10/2012*) and with average growth across the range of 24%,” says marketing manager Brenda Galbraith. She adds:“The new summer products perfect for the grill are Tegel Hot Legs. Hot Legs are a man-size portion of a whole chicken leg that’s semi deboned with a split cut to help the marinade infuse for maximum flavour and quick cooking. Available

* Source: Aztec

Leader products Summer time is the pinnacle season for Leader Products despite a common misconception that we make lettuce, says Caroline James, national retail sales & marketing manager. “We have the largest, most innovative frozen product offering for New Zealand’s BBQ’s. Starting with five sizes of BBQ Beef Burger packs – 8’s, 10’s, 22’s, 38’s, and 50’s – through to Flame Grilled Chicken Burgers (gluten free), Southern Style Chicken Patties, BBQ Pork Riblets, Leader products has every meat lover’s taste accommodated. Our Kauri Coast

“The Tegel Ready for the Grill range is well liked by shoppers for its convenience, value and authentic flavours.” Brenda Galbraith, marketing manager in exciting new hot flavours of Peri Peri and Jamaican Jerk, they are sure to be popular. Pre-packed, with two Hot Legs per bag, they are perfect for putting straight onto the BBQ. For a smaller bite we have new Marinated Nibbles, in two new great flavours of Honey Barbeque and Buffalo.Always on offer is our range of popular flavoursome fresh chicken kebabs. Premarinated in the best flavours for ease and convenience, with a new 36

FMCG decEMBER 2012

range of Kumara Rosti’s combined with our quarter pounder vegetarian burger means the non-meat-eater is covered too. “In 2012 we launched eight new products and the first half of 2013 will see eight more. Launched late in 2012 The Chargrilled Chicken Steakette is a huge hit and perfect for the BBQ. Analysis of October figures show us a +22% $ growth (versus Oct 2011) in our 22pc Burger Trays, and

+27% in Southern style patties; Pork Riblets show +36% growth and current indications for November point towards another bumper month as we build up to BBQ Bonanza in December,” says James.

Leonards Leonards is a well established brand having been in the market place for over 22 years. Given the strength and confidence that exists with the Leonards’ identity the company has not been tempted to deviate from this established brand loyalty, says Roger Whitfield, Leonard’s superior smallgoods national sales manager. Listening to what customers wanted prompted Leonards to introduce in 2012 its range of plain and flavoured pre-cooked sausages into modified atmosphere packaging and to highlight the approximate sausage count for consumers to more easily identify the pack quantity, which was found to be a significant preference. Whitfield explains: “Leonards has for some time now recognised the trend towards value added indicators and in particular a trend towards healthier product benefits and as such we offer an extensive range of gluten-free, MSG-free and dairy-free products within fresh and packaged lines ideal for BBQ’s. Within the gluten-free range of sausages Leonards introduced an ‘International Gourmet’ premium range of fresh sausages with such flavours as Herb and Garlic, Italian and Texan Chilli, to name a few, ensuring the taste and flavour factors meet with consumer’s approval.” Whitfield says: “Leonards are well prepared for the BBQ season and in its planning see the opportunity to capture consumer trends in extending the traditional BBQ offering across a wider range of products, such as ham steaks along with the unique Leonards’ larger sausage style Cheese Kranskys, which when recently sampled at public food shows proved to be a huge favourite with the public in general. All these products carry


cate go r y c h e c k innovative and never seen before product: A lamb Squasage, which is a frozen square sausage. Marketing director Anna Arndt explains: “With the summer BBQ market in mind they are a fantastic option for the BBQ as they won’t roll around, even if your BBQ is on a hill. Cook from frozen for just two minutes on Aria Farm’s lamb Squasage. each side (eight minutes in total). They are conthe Leonards’ label and can be found veniently packed in 12 Squasages in most supermarkets.” per packet, nine packets per carton and will be in the frozen butchery section. New Squasage “Aria Farm continues to get posiAria Farm, winners of the business innovation category in the NZ Food tive customer feedback about its alAwards, has just launched another lergen free and healthy products; the

squasage has been developed with this in mind. It has no gluten, soy, dairy, colour or preservative and only 5% fat. “This product is packed compactly; with a retail price of $5.49 it will not only suit the large stores but also Four Squares and other smaller retail outlets in holiday locations. “Our feedback shows, consumers want products that are quick to cook and would prefer them to be healthy,” says Arndt. She adds: “Aria Farm’s beef, lamb and chicken strips are still a popular product and are excellent for a summer BBQ. They can be used as part of a meal in a bun, salad, wrap, burger, or make an excellent pre dinner snack. A fun and creative marketing campaign has been designed to support the launch of the innovative Squasage.”

GET THE MOST OUT OF SUMMER WITH LEADER

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FMCG decEMBER 2012

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It’s time to fire up the

BBQ

Are you making the most of the opportunity? Day/Anniversary day celebrations, sport and a BBQ afterwards etc); special events such as Christmas Day or birthday celebrations; to ‘out of home’ occasions such as camping holidays and days out at the beach or park.They are mainly informal occasions and while what’s on the menu, and what type of beer or wine will be included, tends to be top of mind, there are a myriad of opportunities to uptrade shoppers on their chosen categories, based on the type of BBQ they are attending or throwing, and to sell them more depending on the size of the gathering they are having. Some of the key opportunities around occasions are: • Probe customers on their reasons for the store visit – if for entertaining ask the “how many, who are they, what do they like” questions • Provide cross category bundles of basics for different BBQ event types, including add-ons, such as glassware. Bundle items could include anything from BBQ meal kits (ie, recipe and the relevant ingredients and condiments) to add-ons, such as pre-BBQ snacks (salty snacks, dips, crackers, cheese etc), alcoholic and non-alcoholic beverages, party plates, napkins, paper towels and even BBQ cleaning products • Vary the bundles by level of formality (eg, casual BBQ = basic meats, bread, sauce, soft drinks, beer and quaffing wine; upmarket BBQ = premium cuts of meat, marinades, pre-packed salads, craft beer, premium wine, napkins etc) • Create a ‘Summer Entertaining’ specific area of the store

• Communicate occasions such as ‘perfect gift for host’ (eg, a bottle of wine to take to a weekend gathering) • Provide some drink/food matching information and education (eg, best beers/wines for seafood BBQs versus steak BBQs • ‘BBQ in a box’ options are also ideal for service stations and route, particularly on arterial and roadhouse locations. The idea here is to drive basket size for the retailer and a mix of AWOP (Average Weight of Purchase) and penetration for the manufacturer, depending on your category. It’s all about getting shoppers to buy an extra bottle of sauce, tub of dip, cheese wedge, box of crackers and so on. Pick & Mix multi-buys (any ‘2 for $x’, any ‘3 for $x’) would work really well across all sorts of BBQ occasionrelated categories. Make it easy for the shopper to add your product to the basket by offering an entertaining meal solution. Bear in mind that proteins are usually shopped early in the trip (just after fresh) so try to locate your messaging /display near, or at these areas of the store. So make the most of BBQ entertaining and flip some product this summer!

Photo: thinkstockphotos.com

B

BQs are synonymous with the Kiwi summer as people take advantage of the sunshine to get together with family and friends to enjoy a relaxed meal outdoors. BBQ occasions fall into both ‘dinner tonight’ and ‘entertaining’ shopper trip types (two of the core supermarket trip types), but here we will focus on entertaining occasions and how you can tap into them through the lens of the BBQ. There are a number of variables within entertaining occasions generally that have a bearing on how much shoppers buy, of what (categories, brands, pack formats/sizes) and how much they spend: • How many people are invited/ attending – if it’s a smaller gathering the host is likely to spend more per head. For larger groups the host is likely to spend less per head and just stock the basics for the thronging hordes • Level of formality, which is impacted by relationships • Relationship of the participants to the host (ie, close family, distant family, close friends, acquaintances, work colleagues) • Whether the event is meal-based or drinks-based (with a few snacks) • Energy level of event (eg, ‘go off ’ versus relaxed) • Day or night time • Theming. BBQ entertaining occasions span ‘at home’ summer entertaining (pre/ post-Christmas get-togethers for brunch, lunch or dinner, casual meals with friends and family, Waitangi

Annette Piercy M: 027 300 8010 Freecall: 0800 300 8010 E: annette@shop-ability.com W: www.shop-ability.com

decEMber 2012 FMCG

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cate go r y c h e c k

Health & Beauty Aisle The family planning category is worth more than $12 million in New Zealand supermarkets with healthy growth evident across all segments. Suppliers explain what’s new and in demand.

O

Photo: thinkstockphotos.com

nce-discreet and almost ‘taboo’ personal care products are showing up on supermarket shelves in eye-catching packaging. Retailers are reaping the profits and many consumers prefer the convenience of the one-stop-shop, now buying their health, beauty and family planning products with their groceries. EBOS Healthcare represents the Ansell brand of condoms in New Zealand. “Products under the Ansell Brand include Ansell Lifestyles Zero, which is New Zealand’s thinnest latex rubber condom, and the Lifestyles range of Ultra Thin, Regular, Assorted and Ribbed Condoms,” explains Karen Kelly, national retail manager Ebos Healthcare. She says: “Ansell have re-packaged the Lifestyles range of Ultra Thin, Regular, Assorted and Ribbed condoms and the new ‘Bedsheets’ design hit shelves from November onwards. Ansell undertook qualitative and quantitative research to develop the new packaging and the consumers felt the new design was in line with user values; it’s fun and playful and has great colours.” Under the Lifestyles range two 40

FMCG DECCEMBER 2012


fami ly plann in g new products were introduced: Lifestyles Regular Condoms in a 30-piece value pack and Lifestyles Ribbed (12pk) for extra stimulation. New packs are hitting the shelves from November onwards. At the time of writing Kelly said it is too early to comment on the progress of these products as the new packaging is expected to be fully completed by mid Feb 2013. With respect to consumer trends in this category, she says:“The Condom category is dominated by the Thin segment, which represents 47.04% of the category with +3.5% growth, followed by Assorted at 22.95% of the category with +2.7% growth, then Regular at 20.31% and +3.2% growth (Aztec MAT to 4/11/2012). “The condom category has a sea-

sonal sales peak over the Christmas and New Year period. Sales in the week leading up to New Years Eve increase by 43% (based on Aztec weekly sales TKA over the last two years),” she says. Kelly adds that Roy Morgan Research (undertaken between

“The condom category has a seasonal sales peak over the Christmas and New Year period. Sales in the week leading up to New Years Eve increase by 43% (based on Aztec weekly sales TKA over the last two years).”

THE BREAKDOWN Current MAT to 04 November 2012 Total Family Planning: $12.019m Value % Chg vs YA 10.3 T. Condoms: $5.318m Value % Chg vs YA 3.2 T. Diagnostic Tests & Equipment: $2.639m Value % Chg vs YA 11.6 T. Personal Lubricants: $4.061m Value % Chg vs YA 20.3 *Nielsen New Zealand ScanTrack (Databank)

Karen Kelly, national retail manager Ebos Healthcare

DECEMBer 2012 FMCG

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cate go r y c h e c k “Pregnosis tests deliver quick results, are easy to use, and the consumer can test at any time of the day.” Carol Putman, business manager Health and Beauty Division, Wilson Consumer Products October 2011 – September 2012) revealed that the supermarket has the highest amount of consumers purchasing their condoms, versus other channels. “In fact, 59.3% of all condom purchases in New Zealand are made in the supermarket. Of people that purchase in supermarkets 62.3% of males and 55.6% of females purchase condoms in the supermarket. Of people that purchase condoms in the supermarkets 70.2% are aged between 25-34 years and they make up the majority purchases,” she says.

Pregnancy testing Wilson Consumer Products distributes the Pregnosis brand in New Zealand. “There is a consumer trend towards do-it-yourself testing products in which Pregnancy testing is the most developed segment,” explains Carol Putman, business manager Health and Beauty Division, Wilson Consumer Products. Pregnosis tests detect human

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Chorionic Gonadotrophin (or hCG) in urine; hCG is a hormone produced only in pregnancy and can be detected by the end of the first week of pregnancy. Putman says: “Pregnosis tests enable testing as early as 7 to 10 days after conception and are over 99% accurate (in laboratory tests) and detect pregnancy hormone levels as low as 25 IU/L, which is normally reached by the first day of the missed period. “Pregnosis tests deliver quick results, are easy to use, and the consumer can test at any time of the day.” The carton design allows either a horizontal merchandising or upright merchandising allowing a small footfall in store. “Pregnosis is available in a 1-test and 2-test pack; the 2-test pack contains two collection cups (one for each test); there is no need for the consumer to wash and re-use cups, so it is simple, fast and convenient,” she says.


What’s Hot KOH KAE THAILAND’S FAVOURITE NUTS Oriental Merchant is proud to be given the exclusive agency for Koh Kae peanuts for NZ. Koh Kae is famous around the world for their coated peanut in the popular flavours – Original/Coconut, Barbecue, Chicken, Tom Yum and for those that like it hot, Wasabi. Available in 240g cans with ring pull top and a re-sealable plastic lid, they keep fresh and crispy allowing consumers to nibble over an extended period. For more information on Koh Kae peanuts please contact: Oriental Merchant Pty Ltd Tel 0800 10 33 05, Fax 0800 10 33 11 Email: nzenquiries@oriental.com.au Website: www.oriental.com.au

Charlie’s 50% less sugar

Full Taste. Half the Sugar. Charlie’s new “50% Less Sugar” juice drinks are naturally sweetened with stevia. Made from real fruit juice, Never Concentrate! Raspberry & Apple, Summer Fruits and Orange. Available in the chiller at your supermarket & cafe in 300mL and 1L bottles. For more information email office@charlies.co.nz or phone: 09 837 6740

Hellers Ol’ Smokey Streaky Bacon Seriously Smoked Bacon

What’s Hot

Hellers has launched their ‘Seriously smoked’ streaky bacon, ‘Ol’ Smokey, in response to demand for a full-flavoured European-style smoked bacon. Hellers realised that there was a gap in the market for this style of smoked bacon outside traditional deli/butcheries, and looked to introduce a strong smokey-flavoured bacon to supermarkets. Results from taste testing around the country were overwhelmingly positive about this exceptional new bacon. Rich, robust and aromatic Ol’ Smokey was developed by Fraeona Heller, Hellers product development manager, who spent many months getting the right balance of smokey flavours. There will be strong backing for the launch of Hellers Ol’ Smokey, spearheaded by a tvc featuring Leigh Hart. He taste-tests Ol’ Smokey in the main street of Arrowtown only metres away from where Gorg Heller set up his first shop, and where the Hellers tradition of quality, innovation and great tasting smallgoods all began. Available in 320g and 800g packs. DecEMber 2012 FMCG

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g rocer y b us ine ss Iconic juice brand celebrates 50 years New Zealand’s largest juice manufacturer is celebrating 50 years in the business this month. Frucor, which owns iconic Kiwi juice brand Fresh Up, has been quenching the thirst of New Zealanders for five decades. One of the country’s most well-known brands was actually created from something as simple as surplus apples. The Apple and Pear Growers Board faced a dilemma when, in 1962, truckloads of leftover fruit posed a potential problem. With true Kiwi ingenuity the decision was made not to throw out the fruit, but to use the juice, package it and make a refreshing canned beverage, which created the Fresh Up brand, and what was to become, the staple New Zealand juice. In 1962 the first-ever single Fresh-Up manufacturing line created 1000 cans per day, which had to be opened at home with a can opener. Today more than seven million packs of juice are produced every year. The brand also has a rich heritage of famous faces all putting their spin on how best to enjoy the Fresh Up taste, including Kiwi sporting greats like Sir John Walker, Marc Ellis and Matthew Ridge, Annelise Coberger, and New Zealand cricketer Geoff Howarth. It’s hard to forget the memorable catch phrase delivered in a Fresh Up advertisement in 1978 by the darling of the track field, Sir John Walker, who while drinking a can of Fresh Up told Kiwis, “It’s gotta be good for you – a catch-cry

that stayed with the brand until the 1990s. Joel Reichardt, brand manager for Fresh Up, says the decision made 50 years ago to use surplus apples to create a product with longevity, is something the company is hugely proud of. “Celebrating 50 years of Fresh Up in New Zealand is both nostalgic and rewarding. It is a juice that has its roots firmly entrenched in Kiwi inventiveness and positivity. During Fresh Up’s lifespan there have been over 12 flavour variants, but one thing has remained the same – the logo and colours – consistency which has ensured the brand is a staple in many Kiwi households,” says Reichardt. l

Major laboratory expansion in Christchurch AsureQuality has commenced work on a major expansion of its food testing laboratory in Christchurch. The expanded facility in Sir William Pickering Drive will now have over 400 square metres of laboratory space for food analysis. AsureQuality’s chief executive, Michael Thomas, said that with continued growth in the food industry, particularly the dairy sector in the South Island, the time is right to invest in an expansion of the company’s South Island capability. “Increasingly our customers are looking for faster turnaround times of results as they develop opportunities in the export sector. Expanding our Christchurch laboratory in capacity and scope will ensure we continue to meet our

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customers’ needs in the future.” The expansion in Christchurch represents a significant investment for AsureQuality in the South Island and a vote of confidence in one of New Zealand’s most productive regions. AsureQuality is a State-Owned Enterprise and New Zealand’s leading food testing auditing and certification company with over 1700 staff spread nationwide, and has world class laboratories in New Zealand, Australia and Singapore. It provides food safety testing for food producers and processors across the dairy, meat, horticulture and viticulture sectors, with its Wellington laboratory being New Zealand’s leading contaminants testing facility. l


g rocer y busi n ess Franchise market report reflects tough times A new report reveals franchises contribute around $20 billion to the New Zealand economy, suggesting the market is ripe with opportunity. The report, titled Franchising New Zealand 2012, was produced by the Asia-Pacific Centre for Franchising Excellence at Griffith University and Massey University in New Zealand. There are approximately 446 business format franchisors in New Zealand, up from 423 in 2010. However, 88% are Kiwi-born enterprises, which indicate that it is difficult for international franchises to penetrate the market. Most franchising in New Zealand takes place in the service sector, which accounts for 40% of all franchise systems, according to the report. Retail trade comprises 21% of franchisors and 16% of franchise units. Accommodation and food services account for a further 18% of franchisors and 10% of franchise units. The vast majority of New Zealand franchise systems are small. In general, concepts were piloted for only one year prior to

launching the franchise. This appears to be a trend that carries on from findings in previous reports in 2003 and 2010, the report said. Finally, the report offers insight into the performance of New Zealand’s franchise systems in 2011 and 2012 – a period characterised by ongoing economic concerns. Over half the respondent franchisors reported increases in revenue margins from sales over the two years, but overall profit margins for over a quarter declined, the report said. Sixty percent were forced to increase their marketing efforts in order to attract dwindling consumer spending. Although 80% of franchisors in the sample reported that their franchisees were operating profitably, there remain a significant number of strugglers. Amidst fierce competition, franchisees are making every effort to reduce costs by being operationally efficient and decreasing staff numbers. l

Wheat research breakthrough Wheat has a global output of over 680 million tonnes and bread wheat provides over a fifth of the calories humans eat. As the global population and the demand for wheat rises, major efforts are underway to improve productivity by producing varieties that can withstand adverse weather and disease, and that provide greater yields. However, until now the very large size and complexity of the genome have been significant barriers to crop improvement. Breeders and researchers are now able to select plants with desirable combinations of genes using the genetic landmarks in the wheat genome. These landmarks can be incorporated directly into breeding programmes to make more reliable and deliberate choices of wheat varieties that exhibit specific traits. l

Photo: thinkstockphotos.com

Scientists have unlocked key components of the genetic code of one of the world’s most important crops. The first analysis of the complex and exceptionally large bread wheat genome is a major breakthrough in breeding wheat varieties that are more productive and better able to cope with disease, drought and other stresses that cause crop losses. The identification of around 96,000 wheat genes, and insights into the links between them, lays strong foundations for accelerating wheat improvement through advanced molecular breeding and genetic engineering. The research contributes to directly improving food security by facilitating new approaches to wheat crop improvement that will accelerate the production of new wheat varieties and stimulate new research. The analysis comes just two years after UK researchers finished generating the sequence. FMCG Advertising 75mm x 210mm 5mm bleed outlined.pdf 1 26/11/2012 10:18:50 a.m.

OCTOber 2012 FMCG

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Taking it to the Aussies Katherine Rich reports on the FGC’s annual conference.

Katherine Rich and John Clarke at the conference.

T

here’s nothing Kiwis enjoy more than a bit of healthy trans-Tasman rivalry,whether it’s on the sports field or off it. So when the NZ Food & Grocery Council picked Melbourne – that most sporting of Australian cities – as the venue for its 2012 annual conference, we knew there might be some interesting outcomes. We also knew it would be a popular destination for members of the food and grocery industry because it was also a chance to call on important clients. And so it proved, with some 300 people attending, a figure which I believe is the most ever. Perhaps the attraction was the star-studded line-up of speakers, or maybe it was the desire to glean as much information as possible in an environment where the overthe-teacups conversations – where companies share ideas, build networks, and talk about problems – are just as useful in these tough times as the goings-on in the conference hall.

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There was certainly plenty to be gained from the official part of the conference, with presentations from techno-guru Cabinet Minister Maurice Williamson, Australian ‘brand ambassador’ Deborah Hutton, and a captivating interview by Ian Fraser of Kiwi comedy legend John Clarke. Interspersed were sessions by business journalist Bernard Hickey (an economic outlook update and the new ‘austerity’ normal), Rob Clark (Nielsen’s latest no-surprises ‘retail barometer’), corporate anthropologist Michael Henderson (business culture in tough times), Jeremy O’Brien, TVNZ’s head of sales (new advertising strategies), and Dan Gregory of the Impossible Institute (the power of big ideas). Surely enough to make those who weren’t there wish they were. Down at the nitty-gritty end there was the launch of FGC’s new programme, which is designed to help reduce barriers so members can reach export markets. Trade & Enterprise’s regional director of Australia Pacific, Michelle Templar, told the conference that exporters couldn’t just turn up in Australia and expect sales growth – they had to add value to their goods. Tim Morris of Coriolis gave us a fascinating preview of his latest research which, among other things, identified a handful of areas which he called New Zealand’s “next wine industry” (ie, the sector with the best chance of big exports): salmon, honey, spirits, biscuits, pet food, cherries – and identified the first three as the top ones to be in, either as an owner or an investor.

A challenge for Kiwis Foodstuffs (Steven Anderson) and Countdown (Dave Chambers and Murray Johnston) gave their annual updates which were well received, but it was Allister Watson, general manager of meat, dairy and deli for Aussie supermarket chain Coles, who threw the cat into the fresh chicken chiller by saying there was no chance of Kiwi producers attracting his buyers unless they had goods that were different to what the Aussies produced, otherwise “you may as well stay at home”. The ex-pat New Zealander said Australian consumers wanted locally-made products ahead of all else, but conceded there was a lack of innovation in many Australian categories and “much more innovation” in New Zealand, and “if you have something new and unique, something compelling, then certainly we’re all ears”. Sounds like a decent sort of challenge. However, when asked from the floor about Coles buying New Zealand apples – perhaps for the enjoyment of more than 500,000 ex-pat Kiwis keen for a decent apple – he kicked into touch on the full with an “apples aren’t in my area”, for which he received a yellow card by acclimation. So what messages came out of the conference? Well, there are general concerns at the flatness of the economy in terms of sales, with very few categories having seen growth in the past 12 months, and the consensus is that this will continue for some time. There was a lot of discussion about


fgc discounting and the new normal for consumers – that many buy only on promotions. As one speaker pointed out, nearly 60% of all goods purchased in supermarkets are on promotion, so consumers are now waiting until they are on special, as opposed to a natural cycle. For me, the conference proved once again that relationships between New Zealand suppliers and retailers are more positive and collegial than they are in most other countries. And let’s not forget that challenge of how to break into the Aussie market. If my experience of the trans-Tasman condition is anything to go by, that is something Kiwis will rise to.

Perhaps John Clarke’s attitude sums up the approach needed. When asked by Ian Fraser if, based on Clarke’s huge success on both sides of the Tasman, a merger between Australia and New Zealand was likely, he leaned back in his armchair and said: “No, I don’t think it is. I think there’s an enormous closeness, and I think the closeness is never more obvious than when they’re jointly threatened by a third party. But more, I think New Zealand’s always had an idea of its own independence. I think of myself as a New Zealander who lives in Australia, and I’m an Australian as well, and I don’t see much difference really. But I think,

Katherine Rich, CEO, NZ Food & Grocery Council. Email: Katherine.rich@fgc.co.nz

0800 806 328

because of the history, it’s now becoming a real idea in the New Zealand mind that New Zealand is genuinely separate, despite the obvious fact of trans-nationality and in all sorts of other areas, obviously, and particularly commerce, which has always been the case. But it’s never been the case to the extent it now is – ever – and I think that will increase. But I don’t know that New Zealand would want to be an Australian state.” Fraser: “I think there’s a lot of fear among New Zealanders that if it happens it won’t actually be a merger, it will be a takeover.” Clarke:“I see. Has New Zealand got the people to run Australia?” 

w w w. f g c . o r g . n z

www.farmlandfoods.co.nz

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New payment technologies

Albert Naffah, MasterCard New Zealand country manager explains how retailers can make the most of ‘tap-and-go’.

I

magine a kind of supermarket nirvana – where shoppers use their mobile phone or tablet to scan and pay for their groceries themselves as they walk through the store. Utilising Near Field Communication (NFC) technology, customers will simply tap their phones next to each product, and then tap it again at the checkouts to pay. While still a novel idea locally, the rapid uptake of NFC-enabled devices amongst consumers and our commitment to changing the face of the payments industry means that this could soon be an everyday shopping experience in New Zealand. As a nation, we’ve always been early adopters of technology – it’s often just a case of the technology needing to be made available. Plus the payments eco-system is complicated, with lots of players. In addition to consumers and retailers, there are banks, point-of-sale technology providers, telecommunications companies, technology compa48

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nies, finance providers and many more stakeholders. All of these stakeholders need to be aligned and pushing in the same direction. Which is why in March 2011, MasterCard issued a five-year plan, which included a series of milestones designed to help grow and reinforce the integrity of the payments system in New Zealand and to ‘futureproof ’ it so our retailers don’t get left behind. This ‘Roadmap’ helped to give merchants a clear idea of where we were heading, and also helped as we tried to secure the co-operation of both the issuing banks, terminal providers and retailers to ensure that new technology could be rolled out seamlessly and easily. One aspect of the plan included helping to drive PayPass. PayPass is MasterCard’s contactless payment technology, offering customers the fastest, most convenient and secure way to pay. In New Zealand, this technology is currently still only being

used by a small but growing proportion of retailers – but we believe it will be a real game changer once its use becomes more widespread.

PayPass popular in Australia In Australia, the benefits of PayPass are already being seen. PayPass terminals are now operating at every checkout across dozens of national retailers including Coles’ supermarkets nationally, offering a convenient and safe solution for smaller purchases and speeding up queues throughout its stores. The adoption of PayPass terminals means that consumers can now ‘tap-and-go’ at more than 100,000 terminals nationwide, and these numbers continue to grow. It’s a simple illustration of the increasing popularity of this payment method, which is now becoming commonplace in Australia. Penetration of this technology is key and we are committed to helping


featu re drive adoption. When we first issued our ‘Roadmap’, we understood that specific merchant categories would be more relevant than others in terms of PayPass. With that in mind we mandated uptake from merchants focused on speed of service and smaller transactions as PayPass is clearly appealing to those merchants – a simple tap of a PayPass enabled card or NFC-enabled device (like a mobile phone) for payments under $80 (a signature or PIN required over $80) means that low-value payments can be processed quickly, efficiently, and safely. However, what we’re now seeing is more diversity in the range of merchants wanting to use PayPass. This is because many merchants outside of the core categories we initially mandated are also seeing the value, including a growing number

of clothing and electronics retailers. With hundreds of thousands of NFC-enabled smartphones already in market, together with a joint venture between the country’s leading mobile phone operators and Paymark (the company that connects to 75% of the countries’ eftpos terminals) to build enabling technology for mobile payments, and our own Roadmap mandate that now requires every new MasterCard issued to be PayPass enabled, New Zealand is perfectly poised to take to PayPass in significant numbers. Our recent MasterCard Mobile Payments Readiness Index (MPRI) results show that New Zealanders are moving fast in the area of mobile payments. Kiwis love innovation, and as more terminal providers and merchants get on board, we should start to follow global

adoption trends already apparent in other markets like Australia. However, for this to happen, the technology needs to become more commonplace. PayPass enabled terminals have now been switched on at major New Zealand retailers such as Kmart, The Warehouse, Repco, Bunnings and BP and many others are currently in the pilot phase, or have completed their pilot phase of testing. Consumers want to adopt the technology – but what remains is for the rollout of terminals to be more widespread.

Albert Naffah, MasterCard New Zealand country manager.

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Packaging in 2012 and beyond Nick Rowe, director of The Packaging Collective, reviews the latest trends.

A

s a little frog once said, “it aint easy bein’ green”, and nowhere is this more true than down a supermarket aisle. However ‘doing your bit’ is

Green Voice system.

good news for the planet and beneficial in the eyes of your customers, it can generate free PR, stand out from the current offerings and achieve marketing nirvana by going ‘viral’. So while ‘it aint easy’, improving the ‘green’ credentials of your product is imperative. Two outstanding examples in 2012, of reducing the environmental impact of packaging post-consumer, were the creation of the Green Voice system, which turns empty plastic bottles into portable speakers, and the campaign by Singapore’s DIY Living encouraging its customers to turn their empty cardboard furniture packaging into chairs, stools and coffee tables via printed instructions on the box. Rethinking packaging has always been an area where Apple has been

first class, both in terms of design and materials and there are lessons here to be learnt by the food industry. The consumer experience extends beyond consuming or using the product and needs to incorporate everything from pre-purchase through to disposal or end of life. With the launch of the new iPod this year, Apple introduced a new set of ear buds where part of the packaging is dissolvable in water, adding a novelty factor into disposing of the product packaging while also reducing the impact on landfills. Reducing or eliminating packaging is the aim of packaging-free, bulk purchase grocery stores such as In.gredients.com. While this seems counter-intuitive as a packaging development, I would argue that it still

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on

Doug Mathes

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featu re

Packaging is a key aspect of the product proposition and thinking needs to go further than just making it look good. provides plenty of opportunity for brand owners to connect with their customers through branded, limited edition, re-useable containers and then to use this as a springboard to engage with customers on a number of other fronts.

Looking ahead Perhaps the ultimate packaging development in 2012 was the invention of edible packaging, or Wikicells. Developed by Harvard scientist David Edwards, Wikicells protect food products in a similar way to a grape skin or orange peel and expect to launch commercially viable products in 2013. Wikicells presents a whole new swathe of opportunities to rethink food packaging. Looking ahead to 2013 I think there will be three main drivers of packaging innovation; these being the rise of nanotechnology, cradleto-cradle thinking and increased collaboration with consumers. The continued evolution of nanotech applications in food packaging, with its ability to reduce food spoilage and deliver consumer benefits, will provide significant opportunities for brands to find ways to make their product offering even more compelling.

There will be an increasing expectation on brand owners to be responsible for their product packaging after the consumer has finished with it, creating pressure for brand owners to think about their products from cradle to grave and make it easy for consumers to re-use or recycle. Finally there will continue to be examples of brand owners collaborating directly with consumers at all stages throughout the product development process with an increased focus on packaging. Whether its reusing packaging as art, or getting consumers involved pre-launch with the promise of being first to try or buy, the long game will be to engage with consumers in a way your competitors aren’t and the product packaging is an ideal platform to launch from. Packaging is a key aspect of the product proposition and thinking needs to go further than just making it look good. Consideration needs to be given to the impact packaging has, right from material selection through to how it’s disposed of. With the prominence of social media, transparency in the way your products are packaged is critical to success. Brand owners who are ahead of the game will use packaging to amplify their message.

Nick Rowe director, The Packaging Collective nick@packagingcollective.co.nz www.packagingcollective.co.nz

decEMber 2012 FMCG

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A fresh perspective Jeff Rogut, executive director AACS reports his findings from an overseas study tour. The AACS overseas study tour this year visited Dublin, Paris and London and attended the Insights conference on ‘The Future of Convenience’ there. One group also attended the NACS Show in Las Vegas and if there is one clear message for the convenience industry from these places it is: ‘Get fresh’! Fresh does not mean a sandwich with a 3-5 day shelf life; fresh means made, baked or delivered fresh today, for sale today. ‘Fresh’ was also a focus at our Convenience Leaders Summit in late November as we heard from local and overseas industry leaders on what this means. There is no doubt that the successful convenience retailers are those that are a destination for their ranges of beverages, freshly baked or made food products for on-the-go customers and increasingly for those who wish to relax and ‘eat in’ on their journey. From excellent quality pastries, breads,

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salads, sandwiches, coffee and meals, convenience stores in many overseas countries now compete with quick serve restaurants. The increasingly good quality and value foods in convenience stores are proving to offer the quick serve restaurants a strong competitive threat. There are certainly innovative promotional offers, new products and services showing growth, however fresh, quality foods are a focus to retaining and growing customers. The in-store experience is also an important part of the offer with the aroma of coffee and bakery permeating many stores to further reinforce their food appeal. Fresh produce in conveniently sized packs is also an increasing and popular feature in many stores. Of course some offers are unique to certain locations by virtue of their position, but there are chains such as Applegreen and Topaz in Ireland and the UK that are able to extend their

offer consistently across a number of locations – and meet customer expectations of what they uniquely stand for. The key message for convenience retailers and suppliers is that fresh is the future. A challenge? Certainly, but also very rewarding for those businesses that do get it right. It was also interesting to see some of the new products on display at the NACS Show in Las Vegas. New developments in the energy drink and other beverage segments including coffee, many ‘food to go’ options and a very interesting hot bread preparation and vending unit. Walking through the vast NACS Show and seeing, for example, the variety of tobacco suppliers demonstrating products (which they would not be allowed to do here) again reinforces how governments can adversely impact business through legislation


and regulation and still claim to promote and support retailers and small businesses. It reinforces the fact that retailers need to be politically active and let their local politicians know that they are voters too and they need to listen to genuine business concerns. It is a time to be confident about convenience – customers are still time pressured and seeking offers, products and services that will satisfy their needs and simplify their lives. As I heard one commentator say during our trip: “people no longer go

Fresh does not mean a sandwich with a 3-5 day shelf life; fresh means made, baked or delivered fresh today, for sale today. shopping, they shop when they are on the go”. A terrific opportunity is still out there for our industry. The AACS overseas Study Tour in 2013 will include the NACS Show in Atlanta and we will publish more details about this soon on our website aacs.org.au. l

Jeff Rogut (FAIM, Member American Marketing Association) is the executive director of the Australasian Association of Convenience Stores.

First European Convenience Show The first C-Shop Cologne – The European Convenience Show – presented the latest trends in the retail sector in Cologne from November 4-6. The event showcased a wide range of products and provided extensive information for convenience stores. Fresh food, bakery items and coffee were hot topics, but in addition to food and beverages there were tobacco products, magazines and newspapers, stationery and healthcare products on display. Shop design and construction, cash register systems and complete franchise concepts rounded out the range of exhibits. Products and concepts designed to achieve success at Point of Sale were the focus of several expert talks and workshops. From the point of view of exhibitors, C-Shop Cologne was a success. They report high visitor numbers, which included buyers from the wholesale and retail trade, site developers and petrol station operators. The trade visitors came from neighbouring EU member states as well as countries outside of Europe. One of the exhibitors commented: “The product range offered at convenience stores will undergo tremendous development in the coming years. We’re going to actively participate in this growth.” The next C-Shop Cologne will take place from November 9-11, 2014. l

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n a rgo n

Minimum wage debate Recent attacks miss the mark, says Trina Snow. Trina Snow, executive director, NARGON.

Opposition politicians used a recent Parliamentary debate to label the Minimum Wage (Starting Out Wage) Amendment Bill “shocking”, “nasty”, “evil”, “tawdry”, “shameful”, “retrograde”, “embarrassing”, “unfair”, “discriminatory”, “Dickensian” and “abominable”. It is none of those things. Instead, it is a moderate policy which, if anything, does not go far enough towards addressing the problem of youth unemployment. Three groups of young people are targeted: 16 and 17-year-olds in their first six months of work with a new employer; 18 and 19-year-olds who have been paid a benefit for six months or longer and have not completed six months of continuous employment; and 16 to 19-year-olds in a recognised industry training course involving at least 40 credits a year. If both the employer and the employee agree, eligible young people can be paid $10.80 an hour, which is 80% of the current minimum wage, for six months. Over 2000 new jobs are forecast to be created in the first two years. The Starting Out Wage was welcomed by major business groups with one industry leader commenting, “if you consider that many small retailers are taking a very low wage for themselves out of their business, and cannot afford to take on another employee at $13.50, they may be tempted to take on a 16 or 17-year-old after school or at weekends at $10.80”. The Employers and Manufacturers Association (Northern) said everyone concerned about New Zealand’s youth unemployment rate should be celebrating the changes – “without an incentive, an employer with a choice between an experienced worker and an inexperienced worker will choose experience every time”. National has belatedly admitted that the abolition of youth wage rates in 2008 cost 9000 young people

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the chance to work. Introducing the legislation, Hon Tony Ryall said, “we want to help young New Zealanders get their foot on the first rung of the job ladder and we want to make sure that they have an opportunity to get that job”. NARGON members are significant employers of young people and first-time workers. The Starting Out Wage will make it easier to hire young people and recognises the investment and training that most employers provide for those employees. It also reflects the business risk in taking on an inexperienced worker with little or no employment history. We believe the lack of youth rates is keeping thousands of young people out of the workplace. As a nation, we need to have a serious debate about the costs of that decision. That debate will not be helped by speeches like the one delivered by Labour MP Andrew Little. In his mind, “the only businesses that are interested in paying pocket money to young people to do adults’ work are dumb businesses, bad businesses and grubby little businesses that we need fewer of in this country… It is not about helping young people to get a start or get ahead. This is, pure and simple, about exploitation. It is about taking advantage of people often in a desperate and distressed state, and compelling them into low-quality, low-grade, and dead-end work… It is nasty, it is evil, it is tawdry, it is shameful, and it is embarrassing… No good employer will employ anybody under this legislation,” said Little. NARGON members who have long invested in hiring young people will rightly find these comments insulting, unnecessary and unhelpful. Voluntarily agreeing to a Starting Out Wage for a limited amount of time can be the difference between getting a job and not getting a job. Landing that first job is a real chance for young people to develop their skills while earning money. Describing it as “exploitation” suggests the member is out of touch with how real businesses operate in low-margin industries like retail grocery. It also seems to overlook that the last Labour government presided over youth rates for eight years before they were abolished at the behest of the Greens. The Starting Out Wage passed its first reading 61-59 and is now being considered by a select committee.


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the business of liquor reselling

The Midas touch Sileni Estates’ wines are consistently hauling in Gold, trophies and awards.

Sileni Estates CEO Graeme Avery.

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FMCG DECEMBER 2012

Sileni Estates in Hawke’s Bay, New Zealand’s oldest established vineyard area, had its first vintage in 1998. Since then the wines have won worldwide acclaim and been awarded numerous Gold medals and trophies. The winery is named after the Sileni who featured in Roman mythology alongside Bacchus, the god of wine. They celebrated good wine, good food and good company. Sileni boasts a state of the art winery


Sileni Estates is much more than just a winery – it is also an epicurean centre and a gourmet foodstore.

and a team that has honed their winemaking skills in wineries around the world, striving to maintain high standards in environmentally sustainable viticultural and winemaking practices. Sileni Estates produce hand crafted wines that reflect the unique characteristics of the vineyards. But Sileni Estates is much more than just a winery – it is also an epicurean centre and a gourmet foodstore,

showcasing the finest Hawke’s Bay, New Zealand and international products. Sileni owner and CEO Graeme Avery is a visionary entrepreneur who seems to have the Midas touch. With over 40 years of international business experience gained from his previous involvement in Adis International, a world leading medical publishing business, he is responsible for strategic planning and export

market development at Sileni Estates. Sileni recently picked up the Cellar Door of the Year Award at the Mercedes Benz A&P Hawke’s Bay Wine Awards, receiving this accolade for the second time in three years. The Cellar Door of the Year is only one of Sileni’s many major awards this year, including trophies, Judges Choice, Grand Gold, Gold and Best in Class. Sileni does what New Zealand DECember 2012 FMCG

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does best, says Grant Edmonds, chief winemaker. With two thirds of all New Zealand’s wine exports being sauvignon blanc, and most of that from Marlborough, it’s pretty important that this variety continues to get due recognition internationally. Gold is the colour that counts – just ask any Olympic competitor – and Sileni is still consistently hauling in awards with the right colour. Part of this may be due to the 15% Hawke’s Bay Semillon used in the blend which provides mid-palate fruit and weight, and contributes to a riper, softer style. Recent accolades for the widely available Sileni Cellar Selection Marlborough Sauvignon Blanc include a Grand Gold at the Selections Mondiales du Vin in Canada (the biggest wine competition in

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North America and the only NZ wine to achieve Grand Gold status) for the 2011 vintage, a Gold at Mundus Vini in Germany, a Gold and Top 50 ranking at the New World Wine Awards in New Zealand, and 4.5 stars in the influential Winestate magazine and a Pure Gold in the recent Air New Zealand Wine Awards for the 2012 vintage. “These follow on from a Gold at Selections Mondiales for the 2010 vintage, and reinforces the reliability and quality of our biggest commercial production run wine,” says Edmonds. Add to that the Gold for Sileni Estate Selection ‘The Straits’ Marlborough Sauvignon Blanc 2012 at the New Zealand International Wine Show (coming hot on the heels of the Gold for the 2011 vintage of this wine at

the world’s largest wine competition, the IWSC in London), and the total haul of precious metal begins to look truly impressive. But it’s not just sauvignon blanc that is making its mark. Avery points out that “although Hawke’s Bay is not generally known as a pinot noir region, some of the inland, higher altitude river terraces are really coming into their own with this variety”. Recent Gold medals for the Sileni Cellar Selection Hawkes Bay Pinot Noir 2011 at Selections Mondiales in Canada and Sileni Estate Selection ‘The Plateau’ Hawke’s Bay Pinot Noir 2011 at Mundus Vini attest to the growing recognition of the Sileni style in Europe and French wine dominated Quebec. l


Ready-to-launch new Robbie Burns DB Breweries announces the introduction of its new solely focused Ready-To-Drink beverage (RTD) business Robbie Burns. The newly formed business will look after the production, marketing and sales of the already established DB Breweries RTD brands, Barrel 51, Vodka Fuse, and new addition Crabbie’s Alcoholic Ginger Beer. DB has relinquished its RTD brands to Robbie Burns, with the business unit focused on looking at opportunities to expand the RTD business and category. Robbie Burns’ MD Rod Grieve says: “Our priority is for growth. We recognise that consumers have more choice available and that their RTD brand and category repertoires have grown. We want to actively

compete for a share in alcoholic beverage occasions. Our newly formed business unit, Robbie Burns, has the capability to focus on the RTD category and respond quickly to the needs of consumers with our dedicated marketing and sales team. “Although we are a new business we are still very much in the DB fold, and as such we are able to utilise the DB expertise and their innovation process. The initial business focus is on the RTDs’ category, however over time I would like to see Robbie Burns extend into other non-beer, noncider avenues such as agency spirits for example.” For more information on Robbie Burns, Barrel 51, Vodka Fuse and Crabbie’s Alcoholic Ginger beer contact rod@robbieburns.co.nz. l

“The initial business focus is on the RTDs’ category.” Rod Grieve, managing director, Robbie Burns


Best NZ ciders and fruit wines acknowledged Sentry Hill Winery’s Garrison Red Medium has been crowned Champion at the Fruit Wine and Cider Makers’ Trophy Presentation held in Napier in November. A total of 73 wines were entered from around the country by winemakers who have harvested and nurtured their favourite crop in the hope of top honours at New Zealand’s only commercial Fruit Wine and Cider competition. This included 29 ciders/perrys, 11 fruit ciders, 25 fruit wines and eight fortified wines. Other trophy-winners included: • Graeme Oldfield Trophy – Lothlorien Feijoa Medium, Lothlorien Wines • Best Sparkling Wine – Sparkling Trinity, White Goose Winery • Best Still White Fruit Wine – Preston’s Kiwifruit, Preston’s Kiwifruit Winery

(L to R) A Hawke’s Bay Independent Breweries representative accepts the Cider Trophy from David France of ENZAFoods.

• Best Still Red Fruit Wine – Garrison Red Medium, Sentry Hill Winery • Best Fortified Wine – Excalibur, Bembrose Estate • Best Cider – Kingston Scrumpy, Hawke’s Bay Independent Breweries. The entries were scrutinised at the purpose-built tasting facility at Eastern Institute of Technology in Napier by a team of four skilled judges headed up by Malcolm Reeves. Qualified in Food Technology, Reeves has a life-time of winemaking experience and has been judging the Fruit Wine and Cider Makers of NZ Awards for two decades. The Trophy Presentation was held in Napier in the well-known apple growing and winemaking province of Hawke’s Bay, supported by ENZA Foods and Sato New Zealand. Taranaki-based Sentry Hill Wines are produced by traditional methods, with meticulous attention to detail, whilst still taking advantage of modern techniques. The resulting wines are clean, crisp and true to the flavour of the fruit from which they originate. Their Champion Garrison Red Medium is a medium-full flavoured boysenberry wine, displaying a deliciously intense berry aroma and velvety palate with the complexity of oak. The Graeme Oldfield Trophy is awarded to the highest scoring feijoa wine across all categories and in honour of the initiator of the Fruit Wine Association and great feijoa winemaker. For more information visit nzfruitwines.org.nz and sentryhillwinery.co.nz . l

Matua awarded NZ Wine Producer of the Year Matua, the creator of New Zealand’s first sauvignon blanc, has been named the 2012 New Zealand Wine Producer of the Year by the International Wine & Spirits Competition (IWSC), based in London. Sam Glaetzer, director of New Zealand Wine Production and Brands for Treasury Wine Estates, said that the award was a monumental win for the business. “We are elated to receive global recognition by the IWSC. It’s a true honour and testament to the whole Matua team for consistently producing wines of the highest standard and quality,” said Glaetzer. Matua senior winemaker Nikolai St George said he was speechless when he found out the news. “Wine is my passion and my life and I’m so honoured to carry on the tradition started by Bill and Ross Spence nearly 40 years ago.

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“I can’t imagine doing anything else in the world other than making wine, so to be recognised globally as the best New Zealand wine producer feels like I’m in a dream. I am so proud to lead the Matua winemaking team and celebrate this win together,” said St George. This year is just the second time Matua entered the competition. The IWSC is also the only international wine competition that puts all wines through chemical analysis, as well as judging by a team of senior tasters. This award completes another amazing year for Matua. In total, Matua has won seven trophies, 19 Gold medals, and 108 medals in local and international wine shows. Across the entire New Zealand portfolio, Treasury Wine Estates has won 32 Gold and 214 medals. l


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Global sustainability award for Yealands Estate

Yealands Estate.

Yealands Estate has been awarded the leading ‘Sustainable Medium Business’ at the International Green Awards. The Marlborough Winery is the only New Zealand organisation and only winery globally recognised by the leading sustainability awards. The International Green Awards were created with the aim of identifying companies that have exhibited leadership and innovation in their sustainability approach. Founder of Yealands Estate Peter Yealands says this global recognition marks a coming of age for the winery. “We set out with a vision of best practice from the vine to the bottle. Since launch, our goal has been to produce world-class wines and become a global leader in sustainable wine production. This award, in addition to recently winning the best sauvignon blanc in the world at the International Wine Challenge, demonstrates that we’re well on the way to achieving that dream.” The Most Sustainable Medium Business category is open to medium enterprises around the world, with total revenues between $10 million and $100 million.

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Peter Yealands.”

The judges commented that their aim was to reward an organisation that is innovating, challenging traditional wisdom and can show impressive first-hand results that can be replicated with other businesses. All entries were judged anonymously, to avoid any prejudice. “Yealands Estate continually strives to improve our sustainable practices. For us sustainability is about using resources in a smarter way, which guarantees future supply and our profitability. We’re conscious that our commitment needs to be tangible; being green is an integral part of who we are, and for us it is essential to producing world-class wines,” says Yealands. New Zealand Winegrowers’ chief executive Philip Gregan says the win recognises New Zealand as a global leader in sustainable wine production. “The New Zealand Wine industry is committed to sustainable wine production and it’s a great endorsement that one of our producers has been recognised on the international stage.” The winners were announced in November at the International Green Awards ceremony in London. l


Central Otago pinot noir takes top spot at Air NZ Wine Awards The Air New Zealand Wine Awards were announced in Wellington in November and Grasshopper Rock Central Otago Earnscleugh Vineyard Pinot Noir 2010 was awarded the Air New Zealand Champion Wine of the Show Trophy. This marks the first ever win at the Air New Zealand Wine Awards From L-R, Phil Handford (owner/ managing director); for the Central Otago Mike Moffitt (vineyard manager); Peter Bartle (winemaker) wine producer with of Grasshopper Rock. judges describing the winning wine as “complex, round received a total of six trophies, and rich”. The wine also won the JF including Reserve Wine of the Hillebrand New Zealand Champion Show with the Matua Valley Single Pinot Noir Trophy. Grasshopper Vineyard Marlborough Chardonnay Rock’s vineyard is situated in the 2011. Central Otago and Hawke’s Bay southern-most latitude of the won four trophies each, Auckland winegrowing areas in Central Otago. two, and Canterbury and Gisborne The five shareholding families of were awarded one trophy each. Grasshopper Rock originally met An impressive 92 percent of this through a common interest in year’s entries were sustainably agriculture, with four members produced, up from 75 percent last involved in rural banking. year. Chair of judges Michael Brajkovich Now into its 26th year, the Air New said that the Grasshopper Rock Zealand Wine Awards attracted Central Otago Pinot Noir 2010 stood 1367 entries in 17 different classes. In out for its great depth of cherry fruit addition to the 19 trophies awarded, aroma, palate richness and multithere were 97 gold medals, 183 silver layered complexity. medals and 364 bronze medals “Pinot noir is the most successful awarded, bringing the total number varietal class in the competition. The of medals handed out to 644. top wines are simply stunning, and a Owned and organised by New further endorsement of pinot noir’s Zealand Winegrowers, the Air New suitability to making outstanding Zealand Wine Awards is the country’s wines from many regions around most prestigious wine competition the country. The wines from the and is regarded as the official outstanding 2010 vintage are of competition of the New Zealand special note, and are showing even wine industry. l more layers after an extra year of age.” For a full list of Trophy and medal Looking at the regions, Marlborough winners see fmcg.co.nz. DECEMber 2012 FMCG

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FMCG OCTOber 2012


DIARY

2013 JANUARY

MARCH

18-27

INTERNATIONAL GREEN WEEK BERLIN

19-20

THE 2013 FMCG CONFERENCE

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