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9 421902 251016
september 2010 Volume 16 No 8
THE BUSINESS OF MANUFACTURING • LOGISTICS • SUPERMARKETING
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selling proposition, in that it releases explosive menthol and eucalyptus vapours every time you chew, clearing your head and freshening your breath.
Every day over 2000 packets of Airwaves gum is sold across NZ*.
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Wrigley’s Airwaves is a registered trademark of the Wm. Wrigley Jr. Company, a subsidiary of Mars Incorporated.
20 Clone wars
The genetic modification debate
32 Sheep milking
Revenue stream for the meat industry
sep t e m b er 2 0 1 0
6 Editor’s note 8 Industry news 25 What’s hot
34 Show Foodstuffs NZ Expo
Profile Provisions of Central Otago
46 Eye on the World
Grocery logistics in the UK’s smallest city
Category checks 26 Frozen foods 38 Wrapped health
Fresh and local In season
FGC Grocery code worth a look
GS1 On the promise of mobile product information
OUR COVER Brandlines is launching two new Aqua Kiss multi-packs this month: new flavour Mentos Aqua Kiss Acai Berry Watermelon and Mentos Aqua Kiss Pacific.
42 Grocery business
Keeping you up to date with packaging, IT, supply chain and logistics
47 Nargon Big changes to employment law
sep t e m b er 2 0 1 0
Protecting your trademark
64 Snap Spotted out and about
65 Diary Your guide to upcoming industry events
48 Feature BP and the oil spill
50 Conference The annual NZACS awards
52 News 53 Nargon Tide turning against tobacco display bans
56 Feature DB takes on the Kiwi tavern
58 Awards The 2010 BrewNZ Beer Awards
60 Industry news 63 Profile
Neill Catherall, Lighthouse Gin
t here thank BBQ season is almos on re youâ€™re stocked up goodness, so make su usages, especially the
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e of sa Hellers fantastic rang d exotic ing a bit different an new thins, for someth they cook , er cause theyâ€™re thinn this season. And be o long for to g ep anyone waitin quicker and wonâ€™t ke their sausies. ers â€“ real hit with consum The new thins are a s at the ple m 50,000 sausage sa we gave away over down nt od Show and they we recent Auckland Fo finitely de t os ing that Hellers is m really well, confirm No.1 in sausages. nsational favourites in the Se Thereâ€™s also the old ndon Pride, the award winning Lo Sausages range like tiful new au varieties like the be as well as the latest Angus Beef. con butties eat time to make ba And itâ€™s always a gr ays a big hit â€“ â€“ because theyâ€™re alw with Hellers bacon aved meats s. Hellers range of sh especially with the kid mmies; sa e r the kidsâ€™ lunchtim is also a favourite fo . ne taste to suit everyo thereâ€™s a variety and with Hellers. when you stock up You canâ€™t go wrong
Trade enquiries to: Kevin Calder er National Sales Manag 31 50 5 37 DDI: 03 eller.co.nz Email: kevin_calder@h TCHU RCH HEAD OFFICE CH RIS Road, Kaiapoi rth No in Ma 67 Address: 8030 t lfas Be , Post: P O Box 55 .nz r.co elle @h info Email: AUCKLAND PLANT nt, Wiri, Address: 10 Ha Cresce Manukau
:L;H J? I?D=ÂšKFFEHJ ;BB;HIÂšKCFIÂšFÂš>;Âš ort coming up over and magazine supp Hellers has heavy T.V er October and Thereâ€™s Bacon T.V ov the next 3 months. on both T.V and in Meats is appearing November. Shaved and Christmas fast course with summer magazines. And of usages and hams got a big push for sa â€™ve we ing ch oa pr ap er and December. starting in Novemb October T.V - Bacon T.V - Sausages T.V â€“ Shaved Meats d Meats Magazines â€“ Shave Magazines â€“ Hams
e ditor ’s note Vol 16
Serving the business of manufacturing, logistics and supermarketing
PAULINE HERBST – editor
A sneak preview of Selfridges Private Label selection.
Ashley Kramer – SENIOR account manager Mob: 021 232 9401 firstname.lastname@example.org
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International food foray I started writing this editorial in a small village on the Pembrokeshire coast of Wales. I say village as it has that feel; tiny looping lanes with high banks opening up into neighbourhoods with long names and stone houses. However, St Davids is actually a city, officially the UK’s smallest and although it feels like it’s perched at the end of the world it caters to a huge influx of seasonal tourists. Logistically it’s a stock nightmare for local supermarket manager Roy Bone, but after 10 years in the industry, he takes it in his stride – you can read all about it in Eye on the World. We go to print and I finish this as Nottinghill carnival whistles erupt outside the Sainsbury’s downstairs.This morning’s Independent proclaims “a new dawn for agriculture” with the “decoding of the genome hailed as [the] most significant breakthrough in wheat production in 10,000 years”. British scientists have made the results of the research available free online to wheat breeders. Theoretically,
ISSN: 1175-8279 (Print), 1179-8718 (Online).
Pauline Herbst, Editor Official b2b magazine for the Gluten Free Food & Allergy Shows. Media sponsor: Pride in Print Awards.
disease-resistant strains of wheat could be available within five years. One only has to look at the rising prices for bread in Russia following the recent drought to realise the positive implications. Many are still opposed to GM however, and there are as many valid reasons against it as for it. As luck would have it, FMCG had already planned a lead feature revisiting the topic of genetic modification, so you can make up your own mind. Back on home soil, the team has been busy attending launches, the Foodstuffs Expo and a host of award ceremonies, from the BrewNZ Beer Awards to the NZ Association of Convenience Stores annual awards. It’s been a busy issue and it’s hard to believe there are only three more left until the end of the year. While some are forecasting better profits for 2011, others are still prophesying a double dip recession. Here’s hoping for equilibrium in the grocery industry.
Online The hottest news about your industry, delivered fresh to your inbox twice a week. • Up to date • Relevant • Topical Stay in the loop by subscribing to our free twice-weekly email newsletter at www.foodnews.co.nz/subscribe or go to www.fmcg.co.nz for features, news, category checks and blogs at your fingertips 24/7/365.
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news SUPERMARKET SAGA MARCHES ON Shoppers on Auckland’s North Shore will have to wait even longer for the Wairau Road Pak’nSave after Progressive Enterprises launched another appeal against the supermarket last month in the Environment Court. Tony Carter, Foodstuffs (Auckland) managing director, said Progressive is not only “trying to stifle competition and prevent low food prices finally reaching this part of the North Shore, they are also denying people jobs at a time when they are most needed”. l
SUPERMARKET SAGA MARCHES ON Shoppers on Auckland’s North Shore will have to wait even longer for the Wairau Road Pak’nSave after Progressive Enterprises launched another appeal against the Best bacon makers recognised supermarket last month in the Environment Court. Tony Foodstuffs (Auckland) managing director, said NewCarter, Zealand’s best bacons were uncovered at the 100% Progressive is not only Competition. “trying to stifle competition and and New Zealand Bacon Sponsored by Bunzl prevent low food prices finally reaching this partNew of the Kerry Ingredients, the competition celebrates Zealand’s North also denying people at a time best Shore, bacon,they all ofare it made from 100% Newjobs Zealand pork. when needed”. l was Brian Jennings of Redcliffs The they Baconare ofmost the Year winner Butchery in Christchurch, who took home both the supreme award, and gold, for his highly commended Dry Cured Middle bacon. “I’m speechless and blown away, it’s just unbelievable” says Jennings. “We’re just a two-man butcher shop.” Judges described the winning bacon as: “Well balanced, good looking and good tasting. It can be difficult to pick the best of the best, but this one stands out.” Twenty four judges tasted 184 different bacons. The judging panel was headed up by the president of the New Zealand Chefs Association and renowned chef Anita Sarginson, food editor of award-winning Dish magazine Claire Aldous, TV3’s political editor Duncan Garner, well known chef and food writer Simon Holst, and bacon expert Jason Cunningham. “It’s always a delicious day,” says head judge Sarginson, “NZ bacon is a mark of true quality.” This year the 100% New Zealand Bacon Competition featured five categories: Middle, Shoulder, Streaky, Middle Eye, and Dry Cured Middle. Dry Cured Middle bacon is a new category introduced this year due to high demand from butchers and consumers. The gold medallists from each category are compared to each other in a grand final ‘cook off’ to identify New
FMCG september 2010
Zealand’s best bacon for 2010. The competition is in its third year and is open to all New Zealand butchers who make bacon only from 100% New Zealand pork. This year 73 different bacon makers entered. With more than 700,000kgs of imported pork entering New Zealand each week, it is important to keep an eye out for the 100% New Zealand Bacon label to avoid getting stuck with bacon made from imported pork. Other gold medal winners include: Chris Brown of Ellesmere Butchery, Leeston, Canterbury for Middle and Streaky bacon; Andrew Preston of Preston’s Master Butchers, Harbourside, Wellington for Shoulder bacon and Murray Sattler of Buzz the Butcher, Westown, New Plymouth for Middle Eye bacon. The bacon is judged uncooked and cooked, with criteria based on taste, aroma, texture, and appearance. Taste is the key element in the competition, with saltiness, sweetness, aftertaste and overall good taste evaluated by the 24 judges before the winners are found. “The standard of bacon has risen enormously in the three years of this competition,” says Sarginson. “Not only is the consistency in cutting, texture and colour really lifting, but most importantly the flavour is gaining more intensity every year. With tea-tree smoked, garlic-smoked alongside the favourite Manuka-smoked and honey-cured there truly is a bacon for every tastebud.” l ONLINE: Check out the FMCG website for a full list of award winners.
n ews Nosh comes to the Waikato A Nosh Food Market is due to open in Hamilton in March next year. The Hamilton Nosh will be modelled on the company’s flagship Dominion Road market in the Auckland suburb of Mt Eden, with the full Nosh offering of quality fresh produce, butchery, bakery and delicatessen at competitive prices. It is Nosh’s sixth store and will be open seven days. The company plans to recruit locally to fill most of the 20 staff positions required to run the store. The company has agreed to take a lease on new 480m2, standalone premises to be built on the site of the former Pizza Hut store on the corner of Mill and Ulster Streets in the CBD. The new premises will be built by Downey Construction to a design by local Hamilton firm Noel Jessup Architects and a fitout by Gascoignes. There will be on-site parking for 24 cars. Nosh co-founder Clinton Beuvink says: “Hamilton shoppers will soon get the authenticity and expertise of the traditional butcher, the baker, deli, greengrocer and more, and all at real market prices and on one site. Plus, we focus on employing qualified, passionate and foodloving people whose knowledge of fresh produce enhances the Nosh shopping experience.” l
A berry new flavour for Mentos Featuring on FMCG’s September cover is the new flavour being added to the popular Mentos Aqua Kiss range. The Acai Berry Watermelon, being launched in New Zealand this month, not only adds a great new flavour to the existing Aqua Kiss range, but brings new innovative twolayer technology to the chewing gum slab category. The new and stylish Aqua Kiss range, which only started turning up on supermarket shelves in May this year is currently made up of two SKUs – Pacific (Spearmint) single pack and Alaskan (Peppermint) single pack. Brandlines will also be launching two new Aqua Kiss Multi-packs this month: Mentos Aqua Kiss Pacific (52g) and Mentos Aqua Kiss Acai Berry Watermelon (52g). The product comes from Netherlands-based Perfetti van Melle, a privately owned company that manufactures and distributes candy and chewing gum in over 130 countries and is today ranked as the third largest confectionery/ chewing gum processing company in the world. l
september 2010 FMCG
news Progress on Auckland National Distribution Centre Progressive Enterprises’ redevelopment of the Auckland National Distribution Centre (ANDC) at 60 Kerrs Road, Manukau is making great progress and bringing with it strong economic development for the region. Construction on the 15.5-hectare site started in March and is planned to be completed in the first quarter of next year. The rebuild of the 26,000m² distribution centre will completely change the structure and operation of this site, allowing for greater centralisation and more streamlined distribution throughout the national supermarket chain. The ANDC will service 267 stores nationwide and carry 8000 product lines, this is an increase of 2000 lines into the national network, to complement the 7000 lines carried by the Mangere distribution centre. “This redevelopment and re-commissioning of the Wiri-based National Distribution Centre will increase our distribution efficiencies,” said Progressive Enterprises’ managing director Peter Smith. “The existing Mangere Distribution Centre will become the Auckland Regional Distribution Centre distributing fast moving goods to the upper and central North Island, while the ANDC will manage the storage, allocation and transportation of slower moving products throughout New Zealand,” he said. Presently the grocery and general merchandise national supply chains are managed from distribution centres in Mangere, Palmerston North and Christchurch. Once Progressive has completed the development of the ANDC, the Mangere, Palmerston North and Christchurch distribution centres will service their local regions with fast moving goods. The ANDC will optimise Progressive Enterprises’ logistics network to accommodate future growth within the business. Major changes to the site include: • gutting the entire internal warehousing area • re-racking the warehouse • relocating the docking area to the eastern side of the site • relocating the truck entrance from Druces Road to Kerrs Road • a complete separation of truck and staff vehicle movements to increase safety on site • upgrading all the electrical and plumbing services in the warehouse • introducing a range of environmental and energy-efficiency initiatives. There will also be onsite storm water retention ponds with extensive native tree planting. Other local commercial property developments have occurred as a result of the redevelopment of this distribution centre. Purpose-built warehouses have been developed in the Manukau
FMCG september 2010
area to accommodate Ingram Micro and Dick Smith Electronics, both previous tenants in the Progressive Enterprises’ site. In total these projects have generated a financial investment of close to $60 million ($45 million for Progressive Enterprises, $2 million for ING Property Trust in the development of the warehousing for Dick Smith Electronics and $12.7 million for Goodman Property Trust in the purpose-built warehousing for Ingram Micro) and created more than 150 new jobs in the Manukau region. Mayor of Manukau Len Brown said this was a fantastic contribution to the Manukau region. “This sort of investment and job creation in Manukau provides for our local community as well as the wider Auckland region. “Even though we are experiencing a slow national recovery from the recession, it is encouraging to see that Progressive Enterprises is demonstrating confidence in the region and the economy,” Brown said. l
n ews Netball sponsorship renewed Netball fans in Christchurch, Rotorua and Papakura turned out in their hundreds at New World stores recently to meet some of New Zealand’s sporting royalty. New World sponsorship coordinator, Margaret O’Sullivan says, “Bringing the Silver Ferns to our stores provides an ideal opportunity for us to give back to our communities and celebrate this fantastic sponsorship.” Silver Ferns are visiting selected stores throughout the country as part of New World’s elite sponsorship of Netball New Zealand and the Silver Ferns. Members of the Silver Ferns appeared at its Redcliffs, Westend and Papakura stores, providing fans, shoppers and staff alike the chance to come in and meet their netball heroes, as well as grab an autograph or two. Maria Tutaia, who was recently named a part of New Zealand’s Commonwealth Games squad, delighted shoppers at New World Redcliffs by working the checkout. Meanwhile, New World Westend checkout staff packed groceries with Leana de Bruin and Grace Rasmussen. “We were especially proud to see the number of people who turned out to support these talented players. As a 100 percent New Zealand owned and operated organisation, we are pleased to be sponsoring such Kiwi icons as Netball New Zealand and the Silver Ferns,” says O’Sullivan. l
Silver Ferns Leana de Bruin and Grace Rasmussen visit New World Westend to sign autographs for fans.
september 2010 FMCG
news Serving up MasterChef Countdown has sealed an agreement with Imagination TV and TVNZ for the sponsorship of MasterChef New Zealand series two and three. “Countdown loved being part of MasterChef series one and helping Kiwis have a go in their own kitchens. We have now followed this up with a commitment to the next two series,” said Elizabeth Ryley, Progressive Enterprises general manager, communications and marketing. Research following the end of series one indicated that New Zealanders associated closely with Countdown’s sponsorship of MasterChef, strengthening the view that ‘Countdown was for people who balanced value, range and quality’.
Nielsen research, commissioned by TVNZ, indicated that 73% of MasterChef viewers were aware of Countdown as a principal sponsor of the series. “These research results have confirmed that our sponsorship alignment with MasterChef New Zealand was a good fit and led us to committing to another two seasons,” said Ryley. “Our 18,000 staff were great fans too, and proudly wore MasterChef t-shirts describing our link to the programme for the 13-week series.” Countdown is also sponsoring MasterChef Australia series two which is currently screening weekdays at 5.30pm on TV One. l
From left Todd Heller, Rt Hon John Key, Nick Harris, Graham Heenan (Chairman, Hellers).
Factory expansion opened by PM Prime Minister John Key has officially opened a multimilliondollar expansion of the Hellers meat-processing plant on the outskirts of Christchurch. At a function attended by local dignitaries, company supporters and suppliers were told the Kaiapoi expansion is a positive response to growing sales demand for Hellersʼ products. Hellers has become New Zealanders’ favourite smallgoods brand name and the number one seller of sausages, bacon and ham, with indications the company and range of products will continue to grow. The building upgrade has cost $18 million, doubled the size of the existing plant and brought all aspects of the Kaiapoi operation under one roof. Founding director Todd Heller says: “While it’s good news for us, we are pleased this expansion has created a real air of positivity in the industry and created benefits for others. The development has helped stimulate the New Zealand economy
FMCG september 2010
and has buoyed the construction industry in Christchurch. “We are very conscious of the community-wide support we get and are humbled by the way the community is welcoming our expanded factory operation and backing our plans for the future.” Managing director Nick Harris says the development is a major milestone for the company. “The expansion includes a new warehouse and distribution centre, freezers, inwards goods store, offices, ready-to-eat slicing and packing area, as well as new staff amenities including a shared lunch room for all staff,” he says. “The expanded facility gives us room to grow in future, but very importantly also means our staff are now all together under one roof.” The expansion also has national significance for Hellers. The company underwent a $2-million expansion of its five-yearold Auckland factory two years ago, doubling the size of the warehouse and loading area there. l
n ews Local product to revolutionise baking industry Nekta Nutrition, an Auckland-based functional food research company, beverage manufacturer and exporter has launched a new product with the potential to dramatically improve the New Zealand and Australian baking industries. This new product is called Nektabake, a natural carbohydrate extract and multifunctional baking ingredient made from the iconic Kiwifruit. Nektabake can be used as a replacement for butter, animal fats, oils and casein derived products; a healthier, fat free/low fat alternative to traditional baking fats. The benefits to the baking industry are profound as it has the potential to improve nutritional value and add other functional benefits across a broad range of products including bread, muffins, cakes, pastry, pies and cookies. The product acts as a natural stabiliser, flavour enhancer and texturiser, mimicking the rich mouth feel of fats. Applications include low-fat pies, cakes, muffins, biscuits and energy bars. The benefits include additional softness in breads, and increased yield due to its volume-enhancing properties plus it can satisfy the all important consumer “squeeze test”. Phil Pollet, from Goodtime Foods in Hawkes Bay, says: “Nektabake has replaced seven different ingredients, three
imported from the US. It has made our pastry process much easier. The average New Zealand meat pie has 16% fat; using Nektabake our Metro pie range is a very low five percent and has the Heart Foundation tick. We are working towards three percent fat content.” One enormous benefit to the industry is an extended shelf life, plus the moisture-binding ability increases production yields, creating the potential to reduce costs. After eight years of research and a development cost of several million dollars, Nektabake is now available to the New Zealand and Australian baking industries. Local markets are first to have the product, but with the support and expertise of New Zealand Trade and Enterprise offices around the world, Nektabake is very likely to be exported. l
september 2010 FMCG
news Nestlé a finalist in Manukau Business Awards Nestlé has been confirmed as one of three finalists for the Manukau Community Foundation Business Contribution to the Community award, as part of the Westpac Manukau Business Excellence Awards. Over the past eight years that Nestlé has supported the South Auckland Health Foundation, the company has donated over $156,000 to the Foundation, including $10,000 most recently for a soundproof booth from Spain, which upgraded the Counties Manukau DHB audiology unit. South Auckland Health Foundation public relations manager Michelle Kidd says Nestlé has made a significant difference to the Foundation in many ways. “Not only do they donate funding, but also Nestlé product, and
volunteer manpower. We are never short on volunteers at events thanks to their generosity. “The nomination is for the generous ongoing support the South Auckland Health Foundation and Kidz First have received from Nestlé.” Nestlé corporate services manager Maurice Gunnell says: “The support we give is not something we do to get recognition, but is a way of giving back to the community our Manukau factory operates in. “We are proud sponsors of the South Auckland Health Foundation and appreciate the chance to make a difference locally.” The awards take place at the TelstraClear Pacific Centre on September 17. l
New Zealand breakfast tea Twinings has launched a new tea “inspired by the magic of birdsong in the bush as day breaks”. Twinings New Zealand Breakfast Tea is available in-store nationwide from 13 September. It is the creation of Nelson local Andrew Fenemor, who won the Twinings New Zealand Breakfast Tea Challenge in April. The competition, a world-first for Twinings, challenged people to create a blend of tea that captured the essence of New Zealand. Around 250 people submitted entries using the Twinings range as a base, which then went to a judging panel that included Stephen Twining, 10th generation of the Twinings family, New Zealand Master Tea Taster and Blender Matt Greenwood, Paul Henry, Kate Hawkesby, Celia Harvey and Dr Laurence Eyres. Fenemorʼs flavoursome blend came out on top with judges describing it as “brilliantly unique”. In May, Fenemor
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travelled to London where he met with Stephen Twining and the Twinings Tea Masters who helped him fine-tune his blend. The result is a full-bodied, satisfying blend with generous malty flavours. “Adjustments were made to ensure the flavour between the tea bags and loose leaf was consistent but other than that it is very similar to my original blend. I enjoy a good hearty cup of tea in the morning and I think it is just that,” Fenemor says. Fenemor had a tour of the Twinings factory just outside of London and the original Twinings Tea Shop on the Strand that opened 304 years again. “Twinings has a tea library of 35,000 teas at its tasting facility, we tasted a mere 30 or so. We were able to draw comparisons with our tasting experiences of NZ olive oils – not that they taste anything like tea – but it was a fantastic experience to see how the tea tasting process is done,” Fenemor says. Stephen Twining and Fenemor were in Nelson in August, sampling the tea in supermarkets to give people a sneak preview tasting before it goes on sale. Twining also visited Christchurch, Wellington, Auckland and Hamilton for a series of supermarket samplings. l
New supermarket brings $50,000 community fund to Mt Roskill Mt Roskill’s much anticipated New World supermarket opened mid August, bringing with it a significant financial donation to the local community. Foodstuffs general manager, property development, Angela Bull says, “New World prides itself on bringing competition as well as a superior grocery offering at good prices to communities nationwide. This new supermarket will be a welcome asset to Mt Roskill.” New World Mt Roskill’s new owner-operator Russ Wilkinson has pledged to give $50,000 to local community groups in the weeks following the new store opening. He says, “As a third generation grocer, I am really looking forward to bringing New World’s quality offering to Mt Roskill. I am passionate about groceries and providing customers with an exceptional shopping experience. Giving back is part of the way I do business and I just can’t wait to join this vibrant community.” The 3540m2 store, situated on the corner of May and Stoddards Roads in Mt Roskill, has created 150 new jobs for the community. It introduces a superior offering to the area
Murray Jordan, managing director designate of Foodstuffs (Auckland), Russ Wilkinson the owner-operator, and Phil Goff, MP for the Mt Roskill electorate.
with an in-store bakery, premium deli section, and specialist butchery, which will offer a special range of halal meats. Wilkinson is committed to catering to the area’s diverse community. “I understand that Mt Roskill includes more than 50 different cultures, each with their own tastes and dietary requirements. I have a vast range of international foods and I will be talking to my customers to further develop my offering to meet their varied needs,” he says. The MP for Mt Roskill, the Hon Phil Goff officially opened the new store on Tuesday, 17 August. l
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september 2010 FMCG
news Communities benefit from branch ambassadors Sanitarium Health and Wellbeing has announced the recipients of the 2010 Sanitarium Ambassador Awards. This year three Branch Ambassador Awards and 16 ‘Living Our Philosophy’ recipients were announced at a ceremony held at the company’s factory in Royal Oak, Auckland. Gold medallist discus champion Beatrice Faumuina was on-site to present the awards. Held annually, the awards recognise and celebrate employees who demonstrate Sanitarium’s principles in their work, their workplace and the community. Each recipient was nominated by their co-workers for embodying an aspect of the spirit of Sanitarium’s philosophy, which focuses on genuine care for health, hope and happiness for every person. All nominees were then considered for the Branch Ambassador Awards, and a recipient from each branch was selected. Each Branch Ambassador receives a cash prize and $1250 to donate to a charity of their choice. One Ambassador will be chosen next month as the recipient of the overall company award, the Sam Bearpark Award, which celebrates the life of a notable Sanitarium salesperson, who worked at Sanitarium from the 1930s-1950s and was known for his dedication to Sanitarium and his clients. Recipients of the Branch Ambassador Awards were: David Strickland, an electrician from Auckland; Kerina Timoteo, a flake biscuit leading hand from Christchurch; and Vio Euta, an accounts clerk from Auckland. Recipients of the 2010 ‘Living Our Philosophy’ awards from each region include: • The way we do business: Kieran Hurley, Olivier Lawer and Tasi Swann. • Valuing each other: David Abel, Brian Smith, Desmond Cameron and Heather Backburne.
Vio Euta (Branch Ambassador Award winner), Beatrice Faumuina, GM Pierre van Heerden and David Strickland (Branch Ambassador Award winner). Photo credit: Will Seal.
• Truly nourishing food: Ole Pedersen and Shanley Tuhega. • Caring for our world: Rebecca Cox, Chris Flory and Fiailoa Tipoai. • Caring for our communities: Patricia da Silva and Tomasi Buwawa. • Enjoying health and wellbeing: Gracie Xiao and Val Roache. “I am always delighted to see how committed and hardworking, supportive of each other, generous and community minded our staff are,” said GM Pierre Van Heerden. “This year’s Ambassadors exemplify everything we hold dear at Sanitarium and are truly admired by the whole team.” Next year the three Ambassadors will join Australian counterparts in working on a community project in Australia. In October 2010 last year’s winners will be assisting with the upgrade of Manurewa’s Randwick Park Community House to include a community garden, pre-school area and cooking facilities – with Sanitarium providing free lessons in healthy and nutritious cooking.l ONLINE: Check out the FMCG website for a full list of award winners.
Run with the little guy... Create some change Contact: firstname.lastname@example.org 09 413 5027
FMCG september 2010
FRESH AND LOCAL Specialist resource writer John Clarke highlights developments in produce, fish and meat supply.
ON THE WAY
The first West Coast Whitebait – YES! Tangelos and maybe even spring.
IN THEIR PRIME
Kahawai, piper, blue and silver moki, also fresh ling and hoki and scallops and Pacific oysters. Lots of citrus: lemons, limes, navels, and mandarins. Still some yams, parsnips and the last of the best Brussels sprouts. Cervena if you have customers who can afford it and well-priced veal.
SEAFOOD Kahawai: Still a good time for kahawai. These will be ring-netted fish and therefore damn fine quality. Ling: The fresh season for ling runs June-November. Moki (Blue and Silver): The season for this beautiful fish is under way and is a very good option at a reasonable price. Turbot and brill come from the west coast of the South Island but a few of these wonderful large flatfish are turning up in other fresh fish markets. Warehou: Another southern species. The main season is on and price reasonable. MEAT Again expect no real drop in prices for New Zealand red meat over the next month. Sheepmeat: All schedules are still high and on an upward spiral. Beef: Most beef chains have been closed for winter maintenance but there will be improved throughput from now on. Local trade prices for beef are high and still climbing driven by overseas trends; mainly the US market. The reason - America’s cattle herd is down 1.2% to the lowest July 1 figure on record. The beef herd fell by 2% which may not sound like much but equates to 31.7m animals. This is a decline which looks unlikely to reverse so export beef is in demand and prices up. Want a good example of our grass-fed beef? Check out Harmony Food’s organic free-range beef. I recently did a tasting and this was perhaps the best beef I have bought in a very long time and at a price
commensurate with other beef available. Cervena: Same as last month with kill estimates for the year well back and not predicted to pick up until 2012. So with short supplies predicted the traditional summer fall in prices may just not happen. Veal: Veal is the bright spot for meat from hoofed animals and is best value for money at this time of year though it does have a very short fresh season - so make the best of it. The large number of dry stock farms converting to dairy has had the positive effect, for our industry, of putting a lot more veal products into the marketplace giving us good supply and softer prices. The dairy industry produces 2.5 million bobby calves per year and most of them are turned into veal mince, but a good number are finished for white veal and a new product Rose Veal. Rose veal is a gourmet product - the result of five months of fattening calves - giving smallish succulent primal cuts such as racks, shortloins, scotch filets etc. This veal is very juicy and so tender that even lesser cuts such as topside are also suitable for fast cooking methods. Keep an eye out for this veal as it will be available for the first time later this spring. Pork: Farms offer what is described as ‘Free Farmed’ New Zealand pork, this is a consistent and excellent product. Their pork products are all SPCA certified and guaranteed to come from very happy pigs. Processed meat Much the processed pork we see is made from imported raw carcass meat. Labels may say ‘product of New Zealand’ but often fail to mention that the pig was actually farmed overseas. These producers do not have to meet New Zealand regulations when it comes to matters like feed and hormones. This is another good reason why we need decent country of origin labelling. These products still have good traction in the marketplace mainly due to a slight price advantage - but be aware, there is building customer resistance. So just a note on a couple of the better processed pork suppliers from 100% New Zealand pig producers that care about their animals. Freedom Farms bacons and hams are an excellent product from happy stress-free New Zealand pigs. Harmony Foods is producing great small goods,
cured products, salamis, and a range of dry cured bacon and ham - for my money some of the best in the country. Also check out their ready-to-use range of pork ribs. FRUIT Apples: Only a couple of months and then it is imported rubbish. Avocados: New season Hass and Hayes (pebbly skinned), our best avocados are here. However, with the weather we have had this winter it is reasonable to expect the prices to be strong and quality variable. Citrus: This is the time for our local citrus varieties. Tangelos will be best buying from mid to late September Pears: There will be a Kiwi pear or two about but they are deteriorating from now on. The nashi hold on a little longer. Imports are here though. Stone fruit: It is all the imported pretty but pretty tasteless crap at present. Just two or three more months to wait for the good local stuff. Strawberries: The first New Zealand strawberries arrive in a month or so. It seems this fruit hits the market earlier each year. VEGETABLES What with the flow-on effect from the filthy winter weather, expect tight supply for early spring vegetables and all prices to stay firm for another month or two. As with last month best buying are carrots, parsnips, swedes, the turnips including Kohlrabi, celeriac, main crop potatoes and, towards the end of the month, the first new potatoes. Yam and fennel bulb are good quality but pricey. Brown onions, and leeks are in good nick and good buying but good garlic is still expensive. Artichokes (globe): The first globes will be in the markets in a month or thereabouts with supply increasing over spring. Asparagus: The first New Zealand new season spears will be here any minute and it only gets better. Early prices will be exorbitant but soon fall back and then it is four months of sheer bliss. Herbs: All the fresh herbs except tarragon are available all year, but with the bad weather, prices for annuals are up and will stay up until October at least. Kumara: All varieties of the last season’s crop are starting to lose a little quality but don’t appear to be too woody yet, so demand the best available.
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Katherine Rich is the CEO of the New Zealand Food & Grocery Council. Email: Katherine.email@example.com
Every supplier to the grocery sector knows that it’s a tough business, not for the fainthearted or lily-livered. No one expects day-to-day business dealings to be easy. Tough negotiations involving a certain amount of rough and tumble are expected. However, there is a difference between tough, but fair negotiations, and behaviour that amounts to – there is no other word for it – bullying. Bullying comes in various forms and tends to occur when there is an absolute imbalance of market power. When there are only two major firms operating in the grocery sector suppliers can be vulnerable to poor treatment. Clearly bullying doesn’t happen in every case. FGC hears of plenty of supply relationships that last for decades working well for both parties. But we also hear of incidents that leave most fair-minded businessmen and women shaking their heads.What’s worse is that in certain offices such a negative culture is celebrated and younger managers seek to emulate their superiors. Does the supplier/retailer relationship always have to default to a negative and potentially exploitative power play? Senior leaders within the Food and Grocery Council say no, and point out that there are plenty of managers within supermarket retail hierarchies who can both drive a hard bargain and remain fair – that the two states are not mutually exclusive.The issue is what can be done to improve retailer/supplier relationships to combat some of the worst behaviour that in the long term can only destroy brand and market value. It’s worthwhile considering a recent initiative that has been implemented in the United Kingdom since February. Referred to as a ‘Groceries Supply Code of Practice’, the Code aims to improve retailer/supplier relationships and to halt some of the worst treatment of grocery suppliers. No one in the United Kingdom for a moment thinks that a code will transform the grocery sector into a summer’s picnic, but it has been welcomed by suppliers as another support mechanism for them in the marketplace. Some FGC multinational members who have spoken to their UK counterparts report they are positive about the effects of the Code and that it has already stamped out practices such as investment buying, because the Code specifies that retailers must take care not to over-order 18
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Grocery code worth a look Bullies could be monitored by Code. By Katherine Rich promotionally priced goods. Members say the Code has also reduced the number of ad-hoc cost deductions from accounts that are not previously agreed or part of terms. The Code specifies that a retailer must not require a supplier to obtain goods from any third party where the retailer gains from the arrangement. FGC members currently being corralled into Foodstuffs’ Primary Freight programme will no doubt be interested in such provisions. The Code says that no supply agreement is to include obligations on the supplier to compensate the retailer for shrinkage.There are a number of duties placed on retailers in relation to de-listing, in particular that this must be for genuine commercial reasons and definitely not just because a retailer wishes to punish a supplier for something unrelated. Sure it’s early days, but the indications are quite positive. Clearly the Brits think so too, because in the past few days the government has announced the next step to establish a Groceries Code adjudicator to oversee the Code and handle complaints. Billed as a “supermarket watchdog” suppliers will be able to make anonymous complaints to the adjudicator on any of the issues within the Code.This new post begins in 2012 so it will be interesting to see how the new phase in Britain progresses. While enjoying cross-party support from the Tories and Labour in the United Kingdom, here in New Zealand the idea of a Grocery Code for suppliers has been championed by Green MP Sue Kedgley. She has recently spoken with the Minister of Commerce who has asked officials to do some preliminary research on the subject. FGC continues to do its own research on the potential for a Code in New Zealand and to note reported cases of poor treatment, particularly alleged reprisals as a result of members providing exclusive packs to Progressive. Each time a member is subjected to veiled threats about having products de-listed, promotions slashed or told of other “consequences” of supplying exclusive packs, it’s just another tick in the favour of a Grocery Code of Practice.
MobileCom is key as consumers seek more data MobileCom heats up. By Dr Peter Stevens Recently the FGC hosted the self-described ‘Supermarket Guru’ Phil Lempert, who brought his many years of experience and future picking to New Zealand. One of his key messages was that the FMCG sector needed to get ready to deliver information to consumers wherever, whenever, they want it and through the channel of their choice. Lempert was featured flashing his newly minted iPad and proffered that mobile consumer devices (iPads, smart phones) were his pick of devices where consumers wanted to ‘scan something’ and get relevant information, often at the point of purchase or in the purchasing decision-making phase. To be honest, I was both heartened and worried by this discussion: • Heartened because Lempert was right – consumers are already using mobile phones to scan barcodes on products to find out information, comparison shop or count calories. Look further: For those of you with an iPhone, take a look at RedLaser, FatBurner, ShopSavvy and a myriad of other apps. These apps are already some of the most popular downloaded apps in the Apple AppStore. Consumers want to know: where to buy, where a product has come from (country of origin), allergen information, ingredient listing, sustainability information etc. • Worried because, most of these apps are using behindthe-scenes information that is not authenticated, provided by the brand owner of the product being scanned, or even worse, regurgitating content that is ‘user generated’ (ie Facebook-quality with all its biases and blemishes). Look further: Much of the data leveraged by these apps is sourced from Google searches, Amazon queries or from ‘data scrapes’ from god-knows-where.Work at MIT has already demonstrated that much of the data returned by these apps is incorrect or out of date. Most extraordinarily, MIT found that some data
Dr Peter Stevens, chief executive, GS1.
appeared to have been entered deliberately wrong in some sort of industrial sabotage eg entering data for a pornographic product against the Global Trade Item Number [=the barcode number] of a muesli bar. • Heartened because GS1 members worldwide have been working for almost two years to work out a scalable and standards-based way to deliver brand-ownerprovided information to mobile phones. These working groups – collectively known as the MobileCom initiative are attempting to provide a platform for brand owners and their trading partners (mainly retailers) to get correct information into the hands of consumers, and try to combat the tidal wave of user-generated, misleading or downright wrong information that currently powers mobile apps. Look further: The MobileCom working group has put its emphasis on solving first what is called ‘extended packaging’. Find out more, and read the white paper at www.gs1.org/mobilecom. • Worried for New Zealand because the MobileCom strategy is predicated on the existence of a populated sector data pool (in this part of the world, GS1net) which can be enhanced for business-to-consumer communications. Globally the solution GS1 members are working on for MobileCom initiatives relies on a backbone of data provided out of local or globally-synchronised data pools. In many of the countries we would like to compare ourselves to (Canada, Australia, US, Germany, France), country data pools have close to 100% coverage of all products in the food and grocery sector.This means that it is relatively easy to populate the data pool with a few more structured fields for nutrition, sustainability, allergen etc information and expose the data to the ‘cloud’. Unfortunately in New Zealand the rollout of GS1net has been slow, and currently there are only about 5% of SKUs synchronising. Look further: Learn more about GS1net at http://www. gs1nz.org/gs1net.php. In summary? MobileCom is a hot area globally as brand owners, retailers and consumers realise that smart phones can be a key part of pre-purchase decision making and relationship-building.Want a part of it? Let’s talk. september 2010 FMCG
Clone wars What is the current situation for clonally modified foods? By Keith Stewart
othing raises the stakes in the international debate between Greenies and the food industry status quo more than the issue of transgenics. The genetic modification of plants and animals for commercial gain first achieved widespread public prominence with the successful cloning of Dolly the Sheep in Scotland in 1996, and while that event had considerable emotional impact because of its challenge to fundamental Christian sensibilities, it has been the risk of environmental damage from transgenic (cloned) material that has stimulated most protests against transgenic practices. In the intervening 14 years, transgenic research has advanced well ahead of the stage it was at when 20
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Dolly appeared, and in terms of consumer retail around the world it has developed in a number of areas of activity. Most activity is happening in adaptation that has been made for farmers, more specifically for pesticide management. The approach is to use clonal manipulation to develop plants that are resistant to pesticides sprayed onto commercial crops to restrict insect and disease damage. The best known of these is the various transgenic maize (corn) strains that Monsanto has produced to be resistant to its patented herbicide Roundup. The advantage
“PEating mouse modified pork has not yet become an issue for consumers, as the meat has so far not been grown commercially.” for Monsanto is that it gets to sell both the maize seed, which is heavily protected by patent laws, and the herbicide.The claimed advantage for the farmer is they can spray without concern for crop damage while eliminating competitive plants from the crop fields. While there is no clear advantage to consumers in the use of herbicide resistant plants on grain farms, this is the most common instance of genetically modified material entering the food chain. Soy is another crop where extensive areas of the globe are planted in genetically modified plants designed to resist pests and/or herbicide sprays. Similar genetic modification has been developed in the cotton industry, where cotton plants are made resistant to the boll weevil, a voracious pest of cotton. These plants, known as Bacillus thuringiensis (Bt) cotton, are modified to contain an insecticide in their cells that kills the weevil when it eats the plant. Again there is no direct benefit for consumers in this development, or in others that are presently being progressed to commercial status. For the most part these are plants, which may or may not enter the food chain, but for which the benefits are for farmers rather than consumers. Promoters of genetic modification argue that the technology does enable larger and more profitable crops to be produced, and in the case
of grain such as maize this makes an important contribution to feed an overpopulated world. The recent decision by the Canadian government to release genetically modified pigs into the general farming environment puts animals into the ‘modified for production benefit’ area. Researchers in Ontario, Canada have spliced mouse genes into the genetic structure of pigs to modify their digestive processes and reduce the pollution caused by intensive pig farming. Processing the grain the intensively farmed pigs are fed with, produces faeces that are high in phosphorus, which becomes a serious contaminant of waterways, from streams and rivers to lakes and ultimately, the ocean and foreshore. The modified pigs produce faeces that are much lower in phosphorus, and consequently have considerably less negative impacts on the environment than would otherwise be the case. Again the benefit is in production, in reducing the environmental costs that are increasingly being borne by farmers as the world becomes greener. Eating mouse modified pork has not yet become an issue for consumers, as the meat has so far not been grown commercially, but this is expected to happen in the near future, with associated protests from the anti-GM lobby. There is also expected to be more media concern as the prospect of
eating the meat from GM animals is more immediately challenging than is that of eating processed food additives in the form of corn syrup or soy. In countries like New Zealand, where genetically modified material is not permitted in the food chain, the Canadian pork issue is likely to be a headline item.With Canada one of New Zealand’s largest pork suppliers, this meat is likely to become available within the next three years, as soon as the next generation of breeding sows is available for commercial farming. At that point New Zealand public health and food safety authorities will need to directly address consumer concerns about the influence of GM material on their individual health.
Reactive or risk management standards better? Food safety authorities around the world have two basic conclusions with regard to the safety of eating genetically modified material. One is the reactive standard, that because there is no evidence that the material is dangerous, it must be safe. The other is the risk management standard that holds that no evidence of risk, is not evidence of lack of risk, and until safety is proven the material is banned from the food chain. New Zealand, Australia, the United States, Canada and China september 2010 FMCG
“Producers don’t have the latitude to force their ideas on unwilling consumers.” adopt the reactive standard, while Europe and to a lesser extent, Japan, have taken the risk management approach. Science writer and GM expert Colin Tudge is circumspect about the reactive attitude as with research into the long-term consequences of genetically modifying crops, the risks are becoming clearer. Tudge co-wrote the book on the development of Dolly the Sheep, The Second Generation, with the lead researchers responsible for that project’s success, Ian Wilmut and Keith Campbell. “The opposition is growing,” he told FMCG. “The arguments are becoming more coherent and more precise, and evidence of ill effects continues to grow on all fronts.” This will increase pressure on authorities around the world to at least label foods that contain GM material, giving consumers the option of 22
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refusing to buy. There are some signs that this attitude may be gaining momentum in food administration circles in the United States, and Europe is already fighting against claims of trade disruption with its bans on GM material in the European food chain as it asserts its authority. The arrival of GM pork in New Zealand will intensify the battles here. “News that GM meat has been sold in this country will bring the same sort of response from New Zealand consumers as it did in the United Kingdom where there was a scandal over meat from a few genetically modified animals leaking into the food chain,” says Steffan Browning of the Soil & Health Association. With GM material not permitted in the food chain here, there is little information on the likely reaction of various sectors, from farmers to producers and retailers, although
the widespread public activity against adoption of GM technologies 10 years ago is unlikely to have subsided. “The British public have made it damned clear they don’t want a bar of it,” says Browning. “And their supermarket operators have supported them. They won’t stock it because their consumers don’t want it.” David Hughes, professor of marketing at Imperial College, London and consultant to many of the world’s major food producers, including Nestlé and food industry banker Rabobank, is less convinced of the long-term negative public attitude. “I sense the anti-GM argument is starting to crumble, particularly with solutions for increasing food production. But there remains a strong, ‘not in my kitchen’ attitude,” he says. However he does note that we are in a stage of the “demonisation of
the modern global food and beverage industry. Big food has become a target, and they will have to be able to respond.” Part of this response, he concedes, may be to be more cautious about the use of genetic modification in producing consumer lines of food. Colin Tudge says the problem for corporate food companies is becoming greater, as evidence mounts that the GM solutions they have already attempted are failing. “The fact that they don’t necessarily deliver (for example the Bt GM cotton in India which is supposed to
be resistant to boll weevil had succumbed to drought, while organically raised cotton in smaller plots is doing well),” he says, is mounting evidence that the heavily hyped advantages of GM are not apparent. “But the powers that be are very much behind GM – it has become a cash band-wagon – and whatever makes a lot of money for powerful people is always liable to prevail. So the GM bandwagon rolls on, zealously supported by governments such as Britain’s and by mega-commercial forces, notably Monsanto (and these days it is hard to tell where govern-
ment ends and the boardroom begins),” he adds. Hughes says the big companies, no matter how powerful, cannot win a battle against strong consumer attitudes, and the market will dictate what is possible and what is not. “Consumers work it out, they are not stupid,” he says. “Producers don’t have the latitude to force their ideas on unwilling consumers.” september 2010 FMCG
The New Zealand opinion Officially New Zealand projects itself as GM neutral territory, allowing research but without access to the food chain. However, in international trade negotiations the attitude is more bullish in favour of GM technologies. “New Zealand has been pushing hard that internationally meat from GM sources should not be labelled as such,” says Steffan Browning, who is of the opinion that the government and food-regulating authorities intend to slip GM meat into the market secretly. This is possible with the impending availability of GM pork from Canada. “There appears to be no intent to introduce labelling here. We may already have GM meat on supermarket shelves here, and we have no way of knowing,” Browning says. In response to an enquiry over the availability of genetically modified pork in New Zealand, the 24
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Food Safety Authority responded by declaring that there is no evidence of risks to human health from eating GM meat. There is another branch of GM research and development that has been trialled in New Zealand and is growing around the world. This is the manipulation of animal DNA to produce material for human medicines. Pigs have already been modified using pieces of human DNA in efforts to grow transplantable organs for human use. Other animals, including sheep and in New Zealand, dairy cows, have been modified for the purpose of growing pharmaceuticals. While this development is not related to the food chain, some of its resulting products could feasibly become part of the FMCG inventory in the future. In the meantime, there is every possibility that the meat from these animals, once they have finished their role in medicine production, will find its way into the food chain. In Florida, USA, sausages containing pork from GM pigs developed for organ transplants were found in the market, and the recent British case of beef from a Scottish farm coming from a cloned research
animal and its offspring was the cause of intense media activity. The issue surrounding these incidents is not so much the potential for health risks in those who eat the meat, it is in animal welfare. This is already a factor in pork production in New Zealand, and is likely to become a significant issue in GM animal research should the general public become aware of its welfare costs. Colin Tudge, whose original study was in zoology, believes the animal welfare consequences could be dire. “Well-paid people in high places already speak of creating animals that are too stupid to know what is happening to them, rather than in trying to improve welfare standards. Featherless chickens have already been produced so that the birds don’t have to “waste energy” in growing them. Some cows are already producing 4000 gallons of milk a year and with GM – who knows? “ The cost of research in developing such creatures is animals that suffer extreme hardship, either through deformities produced by the inconsistencies of genetic trials, or because their modified DNA gives them less than acceptable lives as whole animals. Again, the pressure will come from consumers, as Hughes says. “People expect good animal welfare in countries such as this,” he says. “Food and culture go hand in hand, so you will never get away with animal abuse in the long term.” In summary, genetic modification is packed with promise, but it is at best a work in progress. Its future success will be decided by the outcome of an ongoing debate between activists and the food industry, with the final arbiters being consumers. GM is arguably the face of future food, if only in that it defines the conditions in which the food industry operates in the 21st century.
What’s Hot Mrs May’s Naturals
New Ingham Duets are a hit at meal times
Sales & Distribution by : Eye Level Marketing & Distribution Ltd Contact : Blair Johnstone - National Sales Manager Phone : 09 836 5139 or 027 600 2951
“At Mrs.May’s We’re Mostly Nuts!”
Hellers Free Farmed Bacon Hellers Free Farmed label bacon – Sensational Middle and Middle Eye Bacon, is sourced from South Island suppliers who do not use stalls or farrowing crates. Piglets are born outside and live with the sow until weaned and live in an ‘eco barn’ where they are free to roam inside and out as nature intended. Consumer demand is growing for these free farmed products and this new label is a great way to attract new buyers, and reassure Hellers Sensational Bacon consumers that they’re buying NZ’s best bacon. For more information contact Kevin Calder, National Sales Manager, at 03 375 5031 or email firstname.lastname@example.org
A delicious duo of New Zealand chicken stuffed with tasty fillings – new Ingham Duets are set to take centre stage at meal times. Available with Alfredo, Broccoli & Cheese and Ham & Cheese fillings, Ingham Duets are encased in 100 per cent New Zealand quality chicken and then lightly crumbed, making them an easy and delicious meal choice. Quick and easy to serve, Ingham Duets come in boxes of four. Just pop them in the oven from frozen to create a truly versatile meal for two. Ingham Duets are the latest addition to the popular Red Box freezer range from Ingham. For more information about Ingham Duets and the Red Box range call Ingham’s sales department on 0508 800 785.
The No.1 selling Indomie noodles are now available in innovative cups Introducing new Indomie Cup Noodles in 3 delicious flavours Mi Goreng, Satay & BBQ Chicken.
Mrs May’s Naturals was founded by Augustine Kim; he grew up eating his grandmother’s irresistible snack. Using his grandma’s recipe, Kim launched Mrs May’s Naturals. Mrs Mays believe in snack foods that offer both great taste and wholesome ingredients. Mrs May’s are Gluten Free, Wheat Free, Dairy Free, Vegan, with No Cholesterol or Preservatives.
With convenient forks, heat resistant cups and unique draining holes in the lid for effortless draining, you can enjoy Indomie Cup Noodles anywhere, anytime. Consumers love Indomie instant noodles, and with Indomie currently on nationwide TV, there’s no better time to stock up with the new Indomie Cup Noodles.
Contact your Acton International Marketing Territory Manager or Ph: (09) 525 1880 september 2010 FMCG
cate go r y c h e c k
Cooking from scratch,
conveniently THE BREAKDOWN Current MAT to 18 July 2010
hink frozen foods and inevitably a packet of frozen veg comes to mind. The vegetable and potato category has had to fight hard to compete against the groundswell for local vege patches and farmers markets with major players introducing a range of new products and innovations. McCain frozen vegetables and potato category products particularly have experienced strong growth in volume against last year with its frozen vegetables in New Zealand showing
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15.9% volume growth for the quarter (Aztec MAT to 25/7/10) versus the same quarter last year. Figures for the latest quarter (Aztec MAT to 25/7/10) show volume growth of +2.9% for the total potato category in New Zealand and as market leader with a 29.2% share, McCain is driving potato category growth with sales up +27.1% by volume on last year, driven by the strong growth of the McCain SuperFries range, and new product launches. Nicki Anderson, marketing director
Total frozen convenience foods: $110,430m. Value % Chg vs YA -1.3. Frozen snack meals: $23,264m. Value % Chg vs YA -8.4. Frozen meat pies: $8,267m. Value % Chg vs YA 8.4. Frozen pizza: $16,121m. Value % Chg vs YA -5.0. Frozen full meals: $20,264m. Value % Chg vs YA -5.0. Frozen sausage rolls & savouries: $13,381m. Value % Chg vs YA 2.9. Frozen meat: $22,168m. Value % Chg vs YA 4.9. Frozen party snack: $6,849m. Value % Chg vs YA 7.2. Frozen pizza bases: $115,517. Value % Chg vs YA 73.7. * ACNielsen New Zealand ScanTrack (Databank)
A harmonious addition to the Red Box range
New Ingham Duets are a great value addition to the frozen category. Made from 100%
New Zealand chicken, Duets are available in three creamy centres – Alfredo, Broccoli & Cheese and Ham & Cheese. In easy to display value packs, Ingham Duets are sure to hit just the right note with customers.
Your customers will Love ‘em. For more information about the Ingham Red Box range call Ingham’s sales department on 0508 800 785.
cate go r y c h e c k Cooking from scratch,
for McCain Foods Australia New Zealand, says:“McCain Foods has been a leading household brand for over 40 years. It began operations in New Zealand by selling a range of products imported from Australia to both the retail and foodservice markets. “Today, McCain produces French fries, vegetables and meals in plants located in Timaru and Hastings and has just announced a $19-million upgrade of the existing Hastings plant in Hawkes Bay.The upgrade will include enhanced processing equipment, new freezers and additional packing configuration, and new bean-processing capability. The increases in vegetable processing at the Hastings site will service the domestic New Zealand market and export to Australia and the Asia-Pacific region.” In its potato range alone McCain offers SuperFries, Beer Batter, Purely Potato, Crunchy fries and wedges, Mini Roast, Sweet Potato SuperFries, Curly Fries, Mini Hashbrowns and Cross Trax. Sweet Potato SuperFries 450g were launched in June, supported by a Sweet Potato Superfries TVC and creating a totally new category in the freezer. The sweet potato chips are a great 28
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tasting alternative to regular potato chips, high in Vitamin A and available in either crinkle cut or thin cut. McCain also launched a range of Seasoned Potato Specialties 500g, namely McCain Curly Fries, Mini Hashbrowns, and Cross Trax, which are all uniquely shaped products. Heinz Wattie’s is another key manufacturer within supermarket freezers with the Wattie’s and Weight Watchers brands; Wattie’s is valued at $64m and Weight Watchers $8.8m (ACNielsen MAT to 18/7/10). Its frozen portfolio has significant market leadership across Frozen Vegetables and Potatoes with 41.4% and 31.3% value shares respectively (ACNielsen MAT to 18/7/10). Recent frozen potato launches include Wattie’s Steam ‘n’ Mash, billed as ‘homemade-mash made easy’ and a relaunch of the Potato Roasters range along with a new line, Southern Style Roasters. Consumer insights drove the need to ensure crispy skin-on potatoes with just the right amount of delicious seasoning. In May 2010, “Wattie’s launched three new frozen vegetable mixes that really are the Pick of the Crop: Full of Beans,Vitality Mix and Super-greens,”
says Anne Lindsay, senior product manager, frozen vegetables, frozen desserts at Heinz Wattie’s. “These lines are naturally nutritious and offer unique ingredients including Italian green beans, shiitake mushrooms and shelled edamame beans. Experience has taught us that new and unique ingredients attract new users into the category and many consumers are already enjoying these mixes with the rate of sale steadily increasing in stores.”
Readymade meals in moments Heinz Wattie’s also features highly in the Frozen Meals category, holding 47.2% value shares (ACNielsen MAT to 18/7/10). Lindsay says: “The last year has seen innovation in frozen meals across both the Weight Watchers and Wattie’s brands. Weight Watchers boosted its range of meals with the launches of two new risottos, which have proven exceptionally popular. Wattie’s has recently taken a true innovation leap in improving the quality of frozen meals. “The new Wattie’s Meal Sensations range offers ‘meals for one’ that consumers think taste fantastic, as research
frozen foo d
confirms. Four internationally inspired recipes were launched at the end of July; Honey Soy Chicken, Creamy Tomato Chicken Penne, Thai Beef Curry and Alfredo Chicken Penne.” Each meal contains a full serving of vegetables and carries the Heart Foundation tick of approval. A steamcooking bag cooks the meal perfectly, ensuring the vegetables retain their crispness. The vastly improved quality this new range offers should really attract users back into a Frozen Meals category that was hit hard during tough economic times. The McCain Meals offering includes lasagne, chicken parmagiana, McCain Healthy Choice, Attack A Snack and in the pizzas range: Pizza Perfection, McCain Subs, Slices, Regular Pizza and Pockets. Foodstuffs private label brand Pam’s has launched two new meal solutions: Pam’s Vege & Chicken, and Vege and Beef are classic stir fries combinations mixed together and ready to cook. “It’s the first of its kind in the freezer in Australasia, if not globally,” says Anna Arndt, co owner of Aria Farm who packs the product on behalf of Pam’s. With Stir Fry meals a popular choice with consumers, the Aria Farm R&D
team developed the meat and vege combinations in response to consumers’ requests for quick, healthy, nourishing meals. Erik Arndt, the brains behind the development of the meat strips, is delighted with the result and says “when we set out on this journey our plan was to create quick, healthy, frozen food that tasted great – and the Stir Fry ticks all the boxes. Not only is it healthy and nutritious, but more importantly, extremely delicious and great value at less than $2 per serve.” The free flowing veges and the meat strips cook from frozen in 10 minutes. It is quick and easy to tip the ingredients into a pre-heated wok or pan and cook.The Pam’s team have left the dressing choice up to their customers, as “with so many flavour variations we thought we would leave it up to them to choose”. To date, the company reports “excellent feedback from customers telling us it’s a hit with the whole family”. Arndt says: “We expect to have over 95 percent take-up from retailers. This is the latest hot thing in quick healthy meals.The product is gluten and allergen free, so no nasties.” Pam’s is available in New World, Pak’nSave and Four
Square Stores in New Zealand. This year Aria Farm is celebrating 13 years in business by relaunching its product range in new packaging and adding an innovative new product to its range of lamb, beef and chicken strips: Tender Beef Mince with Real Tomatoes and Basil. “There’s a revolution taking place in the freezer spurred on by busy people looking for convenient and healthy meals. Consumers want food that is easy and quick to prepare, and that’s good for them – so that’s just what we have done,” says Arndt. Co-owner Anna Arndt says: “Frozen foods are really cool now, and the Aria Farm range is gluten and allergen free and lower in salt. Using 100% New Zealand meat a meal or a snack can be cooked from frozen in six minutes, with no thawing required as the meat cooks from frozen.”
White meat: good for you Frozen meat is always a steady category with $22,168m growth (ACNielsen MAT 18/7/10) and within this chicken and fish are popular options. The frozen chicken range from Ingham continues to grow from strength to september 2010 FMCG
cate go r y c h e c k Cooking from scratch,
conveniently strength, with a growing stable of consumer products across the Red Box, Red Bag, and Value Selections ranges. “Our focus is always around quality, value and of course, convenience, making it easy for consumers to become inspired at mealtimes,” says Jonathan Gray, national sales manager, Inghams Enterprises. The latest addition to Ingham’s Red Box range is Ingham Duets, made with 100 percent New Zealand quality chicken and available in three flavours; Alfredo, Ham & Cheese and Broccoli & Cheese. Gray says consumers shopping in the frozen aisle are consciously planning ahead for mealtimes during the week, and looking for convenient and tasty meal solutions which inspire and appeal to the whole family. “This is why the Red Box range performs so well, and why we see Duets adding to that growth – it is quality packaged in convenience.” The value-added frozen chicken category is currently sitting at just below four percent growth MAT (Aztec) and Gray sees real potential in this category. “Our traditional ‘hero’ products like Kiev, Tenders and Cordon Bleu will always perform strongly, but there is an opportunity to introduce new and exciting products to the frozen category, with innovation in product and flavour coming through as a key trend.” Tegel also continues to hold a solid presence in product innovation within this market and has launched a number of new products in the past few months. From frozen whole birds and portions to value-added products such as 30
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tasty chicken nuggets, chicken bites, chargrilled burgers and gourmet meal options, Tegel has something different to offer to suit any meal occasion. Tegel Take Outs are extremely popular among the teens and had a brand new addition in March early this year – Salt & Vinegar Chicken Tenders.Take Outs are having a very exciting year 2010 with extensive youth-focused sampling campaigns and on-pack promotions. “With more exciting plans ahead for a great Kiwi summer Tegel is looking forward to a strong rest of the year,” says Craig Dixon, marketing manager. For ease and convenience, frozen fish and seafood are a quick and healthy alternative to visiting a seafood market. David Walsh, general manager, Sealord says: “As the category leader (Aztec MAT to 11/7/10), Sealord is changing the face of the freezer with quality and innovation, bringing a range of completely redeveloped, quality products to the freezer. “The entire Sealord frozen portfolio has recently re-launched with quality seafood and ingredients, new packaging designs and formats, and all products are proudly made in New Zealand using a healthier blend of sunflower and canola oils.All products are a good source of Omega 3 and are available in new easy open and re-closable boxes.” Sealord’s new frozen portfolio includes ranges which target specific consumer groups. The Family 6 pack range uses Hoki that is snap-frozen at sea within hours of catch for maximum freshness and is available in authentic tasting batters and crumbs with the Heart Foundation Tick.
Sealord’s new flagship range, Simply Crumbed Hoki Fillets, has been developed to bring new consumers into the category. Simply Crumbed Hoki Fillets are caught off the coast of New Zealand by Sealord people on Sealord boats. Selected fillets are hand cut with care and then snap-frozen to capture the natural goodness of fresh fish. The succulent hoki fillets are delicately crumbed in a unique breadcrumb mix that is freshly baked in Sealord’s own bakery, and then hand packed to reach consumers in perfect condition. The Sealord frozen re-launch is supported with significant marketing spend to bring consumers to the freezer including in-store sampling, TV commercials, and print.
Sweet tooth convenience Frozen desserts have long been the convenient options for dinner parties around the country and an interest in organic and local options has led to a greater range to impress foodie friends. If a product’s success is based on a quirky name, then you don’t get much odder than Oob. Short for Omaha Organic Berries, this family owned orchard is built on sound family values and ethical business practice with a tagline of “New Zealand Grown, New Zealand Made, New Zealand Loyal”. “Having a great product that is grown in New Zealand is just as important as being organic,” says sales and marketing manager Amy Law. “Our blueberries are grown using a combination of technology and organic growing practices.”
frozen foo d
Oob’s 850ml Organic Ice Cream and Sorbet, and Frozen Blueberries are ranged in most supermarkets in New Zealand. Its most popular organic ice-cream flavours include blueberry, strawberry, liquorice, vanilla, vanilla chip, and chocolate.The organic blueberry sorbet is offered in a retail pack. Frozen Blueberries are handpicked and snap frozen to ensure they are freeflow which is extremely important to a discerning consumer. “Oob is proud to be an official supporter of the New Zealand Breast Cancer Foundation. When you purchase a packet of our Organic Frozen Blueberries, we will donate $0.10 to this amazing foundation. Oob believe it is very important to give something back to the community and the NZBCF is very close to the owners of Oob,” says Law. Hot and cold dessert staple Sara Lee is however, still the number-one choice according to Synovate Aztec data (MAT to 04/07/10), leading the $28.2 million market with 40.8% value share and experiencing 14.8% growth versus YA. Along with cheesecakes and Bavarians, Sara Lee also offers a range of Pies, Crumbles, Danishes and Puddings in various flavours. Last year was a big year for Sara Lee with the launch of Sara Lee Cheesecake Minis. The Minis have become a great success, adding incremental value to the cheesecake segment and contributing over $800,000 to the market since launch. Sara Lee is driving the cheesecake segment, growing at 42.7% versus the segment at 19%.
In addition to this launch, Sara Lee also introduced a new Cookies & Cream Bavarian in April 2010. Sara Lee Bavarians currently experience 34.5% growth vs YA. “The upcoming year will be a memorable one for Sara Lee, leveraging our strong retail position to enter the foodservice market,” says Jessica Symons, category analyst.“With a wide range of both sweet and savoury offerings, including individually wrapped muffins and slices, unwrapped muffins, petite cakes, twists on the traditional cheesecakes and danishes, and a selection of quiches and lasagne. Available through Gilmours, Sara Lee is now bringing New Zealanders the opportunity to try even more of our delicious products, living up to our mission ‘to simply delight you… every day.” Trends in the Frozen Foods category are definitely mirroring that of fresh food. As Anna Lindsay summarises, four key food trends include: • Wellness: Growing consumer awareness of ingredients is driving demand for cleaner ingredient labelling, more natural ingredients and less additives/ preservatives; • Health: Growing consumer awareness of recommended amounts of fat and salt required for a healthy diet; • Increase in home cooking:Trend towards cooking from scratch which is increasingly perceived as increasingly quick and convenient; and • Bringing restaurant meals home: Consumer palates are increasingly well travelled, they want greater variety in their meals at home. september 2010 FMCG
Innovation in t he
meat industry Peter Owens examines sheep milking as a revenue stream.
W Blue River’s Kathryn Adams with the company’s Champion Sheep Cheese Award.
FMCG september 2010
hile some sections of the New Zealand sheep industry are predicting doom for this industry, Alliance Group chairman Owen Poole of Wanaka, is not. Poole takes a very robust view of the meat processing and exporting industry and denies it is in crisis. He suggests that since the collapse of prices for most varieties of wool, sheep farmers have become too reliant on their meat cheques. Poole admits there is too much processing capacity for the diminished lamb supply, but denies the meat industry is not innovative. He points to the fact that UK supermarkets are now paying the highest prices ever received for New Zealand lamb, but the high dollar and currency fluctuations have meant lower returns for suppliers. However, Poole has now mooted the idea of large scale sheep milking as another stream of income for Alliance Group suppliers. Enlarging on Poole’s comments, Alliance Group chief executive Grant Cuff
says that while the company is not about to commit shareholders’ capital into a plant to process sheep milk, it would be supportive of moves in that direction. At present there is a strong demand in Europe and in Asia for sheep-milk powder. There is a worldwide shortage of the product and this is reflected in the price of US$7000 per tonne for dried sheep milk powder as opposed to US$4800 for similar powder made from cows’ milk. However, the processing and marketing of dried sheep-milk powder in the south is already flourishing and on a firm footing thanks to the enterprise of an Invercargill entrepreneur. In late 2004, Southland farmer Keith Neylon bought the undertaking of Balclutha-based New Zealand Dairy Sheep and formed a new company, Blue River Dairy Products. Blue River Dairy Products is based in the old So-Fresh Ice Cream building in Invercargill. The company is focused on the production and marketing of milk powder, sheep milk cheeses and ice cream. It targets its
products at the upper end of the general market and this has proved to be a winner in the export markets. At present it is exporting cheese and whole sheep-milk powder to Australia, the Middle East, Asia and the United States. Blue River saw the sheep milking industry as being disadvantaged both in production and marketing by lacking viable volumes of milk and economy of scale. The company therefore decided to boost overall production to the Balclutha plant, by converting a dairy farm at Brydone in Southland and stocking it with first-class milking sheep. This has been very successful and the company has expanded its own supply base while still accepting sheep milk from several people who had supplied it before Blue River took over in 2004. The supplier to Blue River is Antara Ag, which also comes under the banner of the Neylon Group of Companies. At present Blue River Dairy Products is producing six varieties of sheep dairy cheese. Two of these are
feta, which is the best-known type of sheep dairy cheese. A white, salty crumbly cheese, this has been made around the Mediterranean Sea for thousands of years. Indeed, Homer himself refers to it in The Odyssey. Sheep milk feta is regarded as an essential ingredient by all “foodies” (including New Zealand ones for a truly Greek salad). The company’s Haloumi cheese is also based on a recipe that has been used in Greece, Turkey and the Middle East for thousands of years. A creamy, yellowish cheese, Haloumi is cured in whey brine like feta. However, it is not as salty and is much firmer. Haloumi is a very popular cheese for cooking and like feta is also used in salads. Blue River also produces a sheep’s milk cheddar and blue cheese. Blue River Dairy Products’ Curio Bay Pecorino, for the second year in a row, won the top award as Champion Sheep Cheese at the recent 2010 Champions of Cheese Awards in Auckland. (The company also won silver and bronze medals for other
cheeses at the same awards ceremony.) Pecorino is one of the oldest cheeses, known to have been popular at the time of the Roman Empire. The classicist Pliny the Younger referred to it favourably in his writings. Like parmesan it is grainy-textured and hard and is frequently used for grating. However, up until about six months’ maturation it may be eaten as a table cheese. Blue River Dairy Products has widened its commercial options. While dairy sheep milk has been a staple for many people in the Mediterranean Rim and the Middle East for thousands of years, today’s consumers want to buy it in a powdered form. There are many reasons for this, both commercial and social, but powdered sheep-milk is the preferred option. As well as tapping into the export markets with 25kg containers, Blue River also sells sheep’s whole milk powder locally in a 500g pouch. Blue River Dairy’s products are available at supermarkets and quality delicatessens throughout New Zealand. september 2010 FMCG
s f f u t s d o Fo o p x E
rth o N n o t s nd P a l me r s t a nd 2 er 1 b m e t p Se
reports on m a e t G C The FM o d s t u f fs E x p o o F ’s r a e y this on North. in Palmerst
he 2010 Foodstuffs Expo was spread out over three large halls at Arena Manawatu in Palmerston North. With around 200 stands the team initially wondered how a limited trade-only audience could fill such a vast space. They needn’t have worried. The Foodstuffs organisation turned out in force and by 11am on the first day, the halls were buzzing.
FMCG and the java hit The FMCG stand was set up next to Gravity Coffee. Staffed by barista trainers from Auckland, Gravity showed Expo visitors how coffee should look and taste. They’d whipped up close to 600 free cups of the hot stuff by 2pm on Wednesday, averaging around 80 per hour and smiling all the way. The Cafe Laffare stand just opposite was doing an equally brisk trade as visitors tried to keep up their energy levels. 34
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foodstuffs exp o Swift winner
James Crisp had a shiny new Suzuki Swift RS on its stand, which was up for grabs as a prize. The only way to enter was to a do a deal on the day, in other words, place an order with the sales team. Craig Wilson, managing director Foodstuffs Wellington, drew the winning store, New World Thorndon on Wednesday afternoon. The car was packed to the roof with Sunrice goodie bags, which flew out into the crowd at a rate of knots, supplied by six full pallets of stock. Luke Courtney, business manager of Tasti Products was also on this stand with a huge range of wrapped health products, a category that continues to do very well in stores nationwide.
Ceres Organics had its usual packed stand with a huge product range including gluten-free organic snacks such as chips, rice cakes and crackers. “Guilt free snacking” was the concept on the day and who couldn’t appreciate that idea?
Health and beauty
L’Oréal’s hottest new products were getting noticed on a busy stand, with Europe’s biggest cosmetics brand Elvive doing very well across all New Zealand channels since its recent introduction. Garnier’s ExfoBrusher and tinted roll-on products were also being promoted heavily and are definitely getting traction according to Jens Anders, national sales manager for Foodstuffs and The Warehouse. There’s been growth all through the category; big growth, which made for some smiling staff on the stand. Unilever was driving Rexona Adventure antiperspirant, which is brand new to New Zealand, along with Lipton’s Raspberry iced tea.
Among other products, Nestlé was promoting the new Milkybar Kid campaign on its stand. The campaign has generated an even bigger response than expected according to the Nestlé NZ team, with auditions happening all over the country.
The big Brandlines stand was also popular, not least of all because of the stacks of Lindt chocolate on offer, including the Blueberry and Sea Salt flavours which business manager Ken Davis was busily handing out to sweet-toothed visitors. The new Mentos AquaKiss dual layer gum is a first in New Zealand, while the perennial ChupaChups continues to do well, as always.
The Kraft and Cadbury stand was also packed, thanks to the platters of bite-sized chocolate snacks on offer to visitors. A hot new product range was Bliss from The Natural Confectionery Company, available is Berry and Tropical. september 2010 FMCG
Strikeforce New Zealand’s managing director Neville Vujcic had six new product ranges on the stand, including delicious Crespo dried olives. Supplied in soft packs with no liquid weight, these are affordable and compact impulse-buy items. The Olys cereal and fruit oil from Italy was another interesting product boasting a high flash point and subtle taste.
Body paint, fire and ice
The BIC stand had a full complement of staff showing off a range of products as well as some interesting body painting demonstrations on both days. Marketing executive Graham Rogers told FMCG that he was very pleased at the expo turnout.
Good for you
The big brand on the Pave Consumer Brands stand was Dole and CEO Angus Hamilton showcased the new options on offer including Fruit Mix, Fruit and Oats (in convenient dual packs with fruit and oats separated), Tropical Gold cans and one member of the FMCG team’s favourite – shelf stable fruit and custard in a handy four pack. The Moi Agencies stand was packed with Sunsweet Amazins – these diced prunes are getting attention, helped by the very simple and straightforward nutritional information on the pack, which helps consumers judge the health value of the product even when pressed for time. Again health benefits are a critical concern here, highlighting the current trend.
The popular Ingham stand was briskly serving a range of treats with the emphasis being on the new Duets range. National sales manager Jonathan Gray and group marketing manager Richard Cusden were on the stand and have high expectations for the new range. Tegel’s new Satay and Crumbed Tenderloins are part of the cuisine range but the madeto-order sandwich bar was absolutely packed all day.
FMCG september 2010
New look for fish
Sealord had an entirely new range of packaging to put in front of Expo visitors, with the look apparently proving popular. A new crumbing machine has been implemented, which allows for massive flexibility in manufacture, meaning that seasonal or short run products can be released with minimal downtime or inconvenience.
foodstuffs exp o Breakfast and baking
Sanitarium had two new muesli products on its stand – Nut and Seed and Peach and Raspberry. National sales manager Ettienne McClintock told FMCG that Up and Go is doing well, with three ranges now available including a higher protein option in chocolate or vanilla. Vitaco’s team reported a growth in home baking and bread-making. The sector is expanding at an unprecedented rate because consumers are spending more time at home with family and friends. The Healtheries Naturally Slim range now features Slim Bars in addition to the popular powders. Goodman Fielder had an innovative new Pavlova Magic mix, which is shelf stable and comes in its own measuring cup. It’s a simple case of adding water and sugar and enjoying, which explains why the product is doing so well. Vogel’s new soft mixed grain sandwich bread is also proving popular.
Slaking a thirst
The Charlie’s team were offering samples of the new apple and pomegranate juice, which is full of antioxidants and tastes great. The rest of the range was available, along with the Eco-Water and the new Juicy Lucy two-litre pack, which is destined for supermarkets only. Brian Shanks of Bulmer Harvest showed FMCG his BrewNZ 2010 Ciders and Perries award.
Keeping informed and connected
Bruce McConnachie who handles sales and marketing for Two Degrees was sounding very happy with the company’s progress so far, indicating that the Foodstuffs partnership was working well. Nielsen’s associate director of Consumer Research for New Zealand, Gemma Lightfoot was happy to take FMCG through a major new research tool – the Virtual Shopper. The innovative piece of software allows consumers to walk through an online supermarket, looking closely at products and buying what they like while Nielsen tracks every move and asks why certain products are chosen and others rejected.
Tomatoes and beans
Delmaine’s huge range of products covers 35 categories and according to Nicky Morton, sales and marketing director – NZ Retail, it’s not easy to range the lot on a stand. So the stand concentrated on products coming up in the next four months and that was enough to fill the stand. The hottest products at the moment are canned tomatoes and canned beans, the beans in particular are going great guns and showing major growth as Kiwis get into the health, taste and affordability of beans. september 2010 FMCG
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of it THE BREAKDOWN Current MAT to 18 July2010 Total nutritional sports bars: $6,795,473.9m. Value % Chg vs YA 10.12%. * ACNielsen New Zealand ScanTrack (Databank)
utrition you can easily pop into a pocket or a lunchbox, wrapped snacks is a category that continues to grow – both in overall size and in variety. Over the past year, sales of nutritional sports bars alone grew from $6.1 million to nearly $6.8 million (ACNielsen). The overall wrapped snacks category is valued at $128 million and is growing at a rate of 2.5%. Changes in nutritional demands are also increasingly evident with new offerings highlighting features such as gluten or dairy free or no cholesterol. 38
FMCG september 2010
The Nice & Natural brand is the number one brand on the market (22.2%) and is growing at 13.9% off the back of the recent brand relaunch, major advertising campaign and innovative new product development. Nice & Natural was built on a foundation of developing innovative new products. A ‘ready-fire-aim’ and ‘give it a go’ philosophy resulted in the launch of the first Nut Bar on the market. Nice & Natural Natural Nut Bars became a huge hit with New Zealanders and key competitors Tasti, Flemings and Cadbury launched versions of their own.
The Nut Bar segment, which is still growing at 17% is now the number two segment in Wrapped Snacks, worth $32m. Nice & Natural also pioneered the innovative Fruit Novelty segment with Fruit Strings, now worth $13m. The Fruit Strings, Fruit Turbos, Hoops and Charms are made with 65% fruit juice, and free from nuts, gluten, and dairy products. Fruit Turbos shapes include cars, trucks, jets and planes; Fruit Charms shapes include butterflies, hearts, flowers and gemstone rings; and Fruit Hoops are designed to fit over small fingers.
The Wrapped Snacks aisle is inherently difficult to shop and brands in the category experience uncharacteristically low spontaneous brand awareness and consumer recall. So, in March of this year, Nice & Natural relaunched the brand with new look packaging based on key consumer insights. The re-launch was supported with
a $1m ratecard outdoor advertising campaign – the biggest advertising campaign to come from a Wrapped Snacks brand in a number of years.
New player Mok Food Industry is a new player to the Snack Food Category with the introduction of the Mrs May’s Naturals
DƌƐ͘DĂǇΖƐEĂƚƵƌĂůƐǁĂƐĨŽƵŶĚĞĚďǇƵŐƵƐƟŶĞ<ŝŵ͕ŚĞŐƌĞǁƵƉĞĂƟŶŐŚŝƐŐƌĂŶĚŵŽƚŚĞƌΖƐŝƌƌĞƐŝƐƟďůĞ ƐŶĂĐŬ͘hƐŝŶŐŚŝƐŐƌĂŶĚŵĂΖƐƌĞĐŝƉĞ͕<ŝŵůĂƵŶĐŚĞĚDƌƐDĂǇΖƐEĂƚƵƌĂůƐ͘DƌƐDĂǇƐďĞůŝĞǀĞŝŶƐŶĂĐŬĨŽŽĚƐ ƚŚĂƚŽīĞƌďŽƚŚŐƌĞĂƚƚĂƐƚĞĂŶĚǁŚŽůĞƐŽŵĞŝŶŐƌĞĚŝĞŶƚƐ͘DƌƐ͘DĂǇ͛ƐĂƌĞ'ůƵƚĞŶ&ƌĞĞ͕tŚĞĂƚ&ƌĞĞ͕ ĂŝƌǇ&ƌĞĞ͕sĞŐĂŶ͕EŽŚŽůĞƐƚĞƌŽůŽƌWƌĞƐĞƌǀĂƟǀĞƐ͘
www.mrsmays.co.nz Sales & Distribution by: EYE LEVEL MARKETING & DISTRIBUTION LTDz
Contact: Blair Johnstone - National Sales Manager Phone: 09 836 5139 or 027 600 2951
september 2010 FMCG
cate go r y c h e c k
bar of it
Brand. Mrs May’s Naturals contain no cholesterol and no preservatives as well as being dairy free, wheat free, gluten free and vegan. Mrs May’s has responded to consumer demand for a great tasting snack food that has a lot of health benefits. The company also ensured it has a range of products that are peanut free. The range includes both Bars and Crunch’s. The Crunch’s are dryroasted in layers and cut into delectable bite-sized cubes.These dice-sized snacks are made from only simple, wholesome ingredients; premium grade nuts and seeds, evaporated cane juice and a little sea salt for taste. The subtle balance of sweet and salt doesn’t overwhelm your tastebuds and there is nothing to detract from the enjoyment of fresh dry roasted seed and nut flavours. Its initial target market was the teenager-plus categories for lunchbox 40
FMCG september 2010
fillers and general snacking. However, at the recent Auckland Food Show, a lot of parents thought Mrs May’s was a great alternative for the younger consumers because of the fact that Mrs May’s was tasty, healthy and peanut free. However adult supervision is still cautioned for all nut products. The Mrs May’s brand will be distributed and sold by Eyelevel Marketing which is launching the range this week.
Kind replaces real GDLbrands has recently displaced the Real Energy bar range with the USA version – Kind Fruit & Nut bars. Essentially only the brand name and bar weight has changed with an increase from 30g to 40g and 45g in the new range.The taste is exactly the same. The size and price changes have been well accepted by all our previous REAL bar customers. New Worlds,
Pak’nSaves and route specialty stores have had no issue with the increased weight and price and report sales are still growing. Kind Fruit & Nut bars boast a multitude of differences to other fruit and nut bars in the market, including a distinctively different taste. Whole nuts and variants that include macadamias and almonds, combined with apricot, tied together with organic honey create Kind’s unique taste. Two of the current six flavours are drizzle coated in yoghurt and all the bars are gluten and wheat free. At 40g -45g, Kind still provides a portion-controlled snack that appeals particularly to women. Kind is a mainstream product that sells well in all retail outlets, but has proven popular with supermarkets looking to add in some healthier choices at checkouts, or looking for products for their gluten free section.
pro f ile
Central Provisions By Peter Owens
t started with shared family picnic at Lake Wakatipu and a conversation about the quality of Central Otago fruit and vegetables. That was over the 2002 Christmas break. Just one year later, Jane Shaw and Pauline Murphy opened Provisions of Central Otago in a building based in the Old Cromwell Historic Precinct. These days their products, which are clearly focused on Central Otago produce, can be found throughout New Zealand and as far afield as Australia and the UK. The two women have created a business entity that is far more than a hobby. They brought diverse but complementary skills to the new enterprise. Shaw is a former publicist and food and beverage manager while Murphy is a former horticulturist. What they share is a passion for the seasonal, regional food of Central Otago. Murphy points out that Central Otago has a climate very similar to many Mediterranean rim countries with summers of unrelenting heat and bitterly cold winters. She and Shaw have long believed this type of climate is a major contributor to the intense flavours of some fruit and vegetables and the delicate flavours of others. This is also now a widespread belief among the many winegrowers who have flocked to Central Otago in recent years. Some of the region’s wines are now recognised as amongst the finest in the world – particularly Central Otago pinot noir which has recently won medals in many international competitions. Provisions of Central Otago proprietors are well aware of the wine’s high quality and pinot grapes are included among the wide range of local ingredients found in its products. “Central Otago is the food bowl of
the wider Southern Lakes region and it is important that local restaurants and cafes think locally when they source ingredients for their menus,” says Shaw. “Knowing the producers and knowing that it is grown or produced just down the road is really important in these times where food accountability is a growing issue.” The company’s roasted cherry chutney, which won a Cuisine award, is made with locally sourced cherries. Other fruit and vegetables used in their products, including apricots, peaches, nectarines, raspberries, apples and pears are also sourced from local growers. In the commercial kitchen and retail outlet that overlook an arm of Lake Dunstan, the two women are turning this local produce into a range of flavoursome products – some traditional, many with a new or unusual twist that makes the most of the Central Otago “terrroir”. These include shortbreads made with the local wild thyme that spreads over the hills around Cromwell and the award-winning Roasted Cherry Chutney which has been adapted from an old Scottish recipe for plum chutney. Murphy and Shaw believe New Zealanders are no longer so conservative in their food choices and say new products like their apricot mustard fruits chutney have been very well received throughout the country. As well as its Cromwell outlet, Provisions of Central Otago sells to retailers operating speciality shops from Whangarei and Matakana in the North to Invercargill in the South. There are about eight in the Auckland region alone and the company also supplies supermarket delis that have actively sought its products. Outside of New Zealand, its products are now sold in 12 Darriwill Farm stores
throughout Victoria, the Kiwi-inspired Fresh in Mooloolaba in Queensland and the renowned Kiwifruits Store in Pall Mall, London. Interest is also coming from China and the US. But the company remans a staunch supporter of the Central Otago Farmers Market that runs every Sunday through the summer months – and for those occasions, Provisions bakes and sells sticky buns along with freshly baked breads, brioche, fruit focaccias, bagels, sticky gingerbread and more. While it’s a small-scale operation, Murphy believes its success is based on providing products the market wants – made without added colouring and preservatives and in small batches to ensure both freshness and food safety. And its success has already been recognised locally with the top Business Excellence Award presented by Central Otago District in its 2008 business awards.
Pauline Murphy - a passion for provisions.
september 2010 FMCG
g rocer y b us ine ss Experiential marketing gains ground
Continuing on from the experiential work it has been doing with Sanitarium on the Up&Go and Cluster Crisp brands, AmbientX has been selected as the activation agency for the upcoming Marmite centenary campaign. This follows a win last month on Constellation Wines’ Kim Crawford brand having secured the business in a two-way pitch (against an unnamed agency) and ongoing activation work for Beam Global’s Russian Standard Vodka brand. Mark Pickering, partner and creative
strategist at AmbientX, says: “These are growth times for experiential marketing in NZ. As highly engaging, more complex ideas continue to be demanded by clients, dedicated experiential agencies are in an ideal position to offer both the creative idea itself, as well as the experience and knowledge to put those ideas into action. “At EMANZ (Experiential Marketing Association of NZ) we’re expecting to see big wins this year for experiential agencies and watch out for some amazing stuff from the experiential industry at the upcoming EFFIE Awards.” l
Recycling attitude improvement At its Annual General Meeting in Auckland, the Glass Packaging Forum (the Forum) released the latest research conducted by ShapeNZ in July about attitudes to recycling glass packaging and other materials. The poll of over 2300 people was conducted in conjunction with the New Zealand Business Council for Sustainable Development, to follow up similar research conducted in July 2009, which has been used to inform the Forum’s product stewardship strategy. In May, the Forum’s voluntary glass packaging product stewardship scheme received accreditation from the Minister for the Environment under the Waste Minimisation Act (2008) and is the only packaging material to have government recognition of its programme. At a dinner to celebrate this achievement Nicky Wagner MP said: “I led the National Party’s role in the Select Committee refinement of this legislation two years ago, and it is a great pleasure to see the voluntary accreditation provisions bearing fruit. At this stage the Minister is keen to give industry the chance to step up to the challenge, and develop effective, industry-led voluntary product stewardship schemes. “The Glass Forum has the opportunity to validate this approach and demonstrate to the wider waste and packaging sector that voluntary product stewardship can achieve real success without the need for unnecessary regulation. Without any regulation, you have managed to get excellent coverage of your sector.” Wagner told guests that along with the Select Committee she had visited South Australia to see its Container Deposit Legislation in operation and saw similarities in the Forum’s support for, and monitoring of, voluntary glass bottle reuse initiatives. The poll shows that 90% of New Zealanders believe it is
FMCG september 2010
industry’s role to promote recycling and two thirds believe Government should also be doing more to promote recycling. However there is little demand for the Government to regulate. In addition, 74% are either neutral or oppose the introduction of a regulated system such as Container Deposit Legislation. The majority like kerb-side household collections but would like to see more public recycling bins. John Webber, general manager of the Forum, said: “At 66%, New Zealand’s glass recycling is ahead of the European average of 65% and Australia’s recovery rate of 62% and reflects a 32% increase since the Forum was established under the Packaging Accord in 2005. However, as we have been reminded tonight by Government – that still means 34% is not being recycled. “Around 70% of glass is consumed at home with the remaining 30% away from home at bars, restaurants or in public places. As households become much better at recycling glass, we are now focusing our efforts on public places and are keen to build on the opportunities which will arise through New Zealand’s hosting of the Rugby World Cup in 2011. “One thing we share is a frustration that the glass sector alone is funding end-of-life recovery systems and increasingly expected to provide facilities for cans and plastic containers as well. For public place recycling to work other packaging sectors need to come to the party.” l
g rocer y busi n ess Eco hug research Canterbury-based Envirocomp Solution celebrated its first birthday with a visit from the Minister for the Environment. The Hon Dr Nick Smith personally delivered the news that the company will receive funding from the Government’s Waste Management Fund. The company, which launched the first commercial plant to compost disposable nappies and other sanitary hygiene products, is one of the first recipients of the fund established under the Waste Minimisation Act. The fund will enable Envirocomp Solution to conduct a feasibility study to assess demand and identify a suitable location for installing a second plant in the Greater Wellington region. Kimberly-Clark New Zealand, which markets Huggies nappies, will support the study by conducting research with its Wellington-based Huggies club database as part of its ongoing sponsorship. Tristram Wilkinson, general manager for Kimberly-Clark New Zealand, says: “The success of the nappy collection service in North Canterbury shows that people want the convenience of products that they trust but are increasingly looking for solutions to minimise their waste. It is great news that the Government has chosen Envirocomp as one of the first projects to receive funding from the Waste Minimisation Fund. Members of our Huggies club in the Wellington area have asked us when they might have access to the service and this is an important first step.” l
Food and beverages score marketing awards Following months of trawling through entries, rigorous judging, and back-patting of finalists, NZ Marketing Magazine and the New Zealand Marketing Association (NZMA) announced this year’s winners of the coveted TVNZ-NZ Marketing Awards. Winners representing the food and beverage industry included: • New Zealand Honey Co Healthy Honey: New Zealand Marketing Magazine Export Marketing Award • Frucor Beverages Rocket Man campaign & Mars NZ Ltd Whiskas Dry Catfood: Joint winners of the Smartsource Marketing Fast Moving Consumer Goods Award • McDonald’s Restaurants (NZ) Weight Watchers Meals: Morton Estate Wines Retail Award • Adam Maxwell, Independent Liquor: New Zealand Post Marketer of the Year Award • Frucor Rocket Man campaign: TVNZ Innovation in Marketing Award “It’s brilliant to see such widespread participation throughout the marketing community. As an industry, we should be proud of the work we have been doing. We thank all entrants for their contribution, and congratulate this year’s winners for driving innovation and thought leadership for New Zealand businesses,” says Sue McCarty, NZMA’s chief executive. A full list of winners can be found at www.nzmarketingawards.co.nz. l
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Eco labels have mass market appeal According to recent results released by the New Zealand Business Council for Sustainable Development, sales can be influenced by eco claims. Sellers using eco-labels backed with the right information could make as many as 85% of New Zealanders more likely to buy a product. Huge numbers of New Zealanders are considering how sustainable products are before they buy them, according to a new nationwide ShapeNZ survey of 1811 consumers. The weighted nationwide online survey, with a maximum margin of error of +/- 2.3%, shows the top rating factors people consider before buying a product: • local (59%) • eco-friendly (57%) • fair trade (55%) • environmentally sensitive (55%) • lowest cost or price (54%) • socially responsible (37%) • organic (29%). A product’s low carbon intensity is considered by 17%, while just 2% don’t care and 3% don’t know. When asked to select just one factor, the most important is • price (46%), followed by • local and eco-friendly (both 11%) • environmentally responsible (10%) • fair trade (7%) • socially responsible (7%) and • organic (2%). The results indicate huge market opportunities for organisations selling products which are environmentally and socially responsible – and price competitive, according to Peter Neilson, chief executive of the New Zealand Business Council for Sustainable Development, which commissioned the research. The survey also highlights the huge influence being exerted on people’s choices of sustainable products by customers’ own experiences and knowledge of the product or service, and brand trust. The top five influencers are: personal experience 64%, own knowledge 44%, trusted brand 41%, friends’ recommendations 35%, news reviews highlighting advantages 20%. Only 2% say they are influenced by famous people or celebrities’ endorsement. Eco-labels certifying environmental friendliness can also make
FMCG september 2010
New Zealanders 29% more likely to buy a product. Another 56% say it depends on the label and how much background information they know about the label (for example, if the labels’ claims are certified, not just marketing). The results indicate if sellers use eco-labels backed with authentic information this could make as many as 85% more likely to buy. “There is immense power in not only producing authentically sustainable products and services – but taking them to market complete with evidence backing the claims – and getting this information to consumers. Brand trust, another major factor, is enhanced by this behaviour,” says Neilson. “Kiwis will buy the right things if sellers inform them. This is the big opportunity, the big challenge. Given no other information, price drives just over half the buying decisions. But producing environmentally and socially acceptable products and services can provide major market advantages.” Eco-friendliness is most important to 18 to 24 year-olds, cost to 24 to 34 year-olds, environmental sensitivity and eco friendliness to 35 to 54 year-olds, local to 55 to 65 year-olds, eco-friendliness and fair trade to those 65 or older. Women are more likely to consider environmental and social aspects of a product before buying. Households on higher incomes ($70,000+ a year) are more likely to consider environmental sensitivity and local when buying, while households on lower incomes consider price and environmental sensitivity. Households earning between $30,001 and $50,000 are the most price sensitive (49% compared with 46% for all when given a choice of one attribute only), and households on $200,000+ a year are least price sensitive (38%). The survey results are weighted by age, gender, ethnicity, personal income, employment status and party vote 2008 to provide a representative sample of the national population. The survey was conducted in association with Fairfax Media in support of its Sustainable 60 Awards. l
g rocer y busi n ess Wine dispenser for retail Marketing at retail solutions provider SPOS has launched the WineStation dispensing unit which stores, preserves, and pours consistent wine samples. It is ideal for use in locations where wine tasting takes place, like liquor stores, wineries, and wine tasting events. Developed by US-based Napa Technology, the WineStation allows full or part glasses of wine to be dispensed while preserving the wine’s freshness for up to 60 days with the use of nitrogen or argon gas. It also ensures that the same size sample of wine is dispensed each time. The basic WineStation unit holds four bottles but is infinitely expandable up to thousands of bottles. It is fully automated and can either be operated and controlled by staff, or customers can be issued with a smartcard to let them taste wines in a retail environment. SPOS product manager Kathryn Harradine says the WineStation has a number of advantages over traditional methods of wine tasting. “Firstly, it reduces skimming or occasional ‘heavy handed’ service by retail staff. Plus, it allows retailers to provide more E S T 0 1 1 8 - F MC G - 1 - 2 - P G . p d f
expensive wines for tasting without the worry of spoilage. This encourages customers to buy higher priced bottles. The use of WineStation can also create a new revenue stream by providing hosted or self-service wine tasting events.” In addition to preservation and automation, WineStation’s software and reporting tools enable you to track customer preferences, record purchases, build customer contact lists and identify the right merchandising and pricing strategies to increase your revenue, operating efficiency, productivity and profitability. l
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If you can’t accept your customers’ money, they will find someone else who can. As a retailer, it’s crucial that your EFTPOS technology is up-to-speed and can process transactions for all of your customers. With banks issuing new, more secure chip cards, retailers who don’t upgrade will be unable to process the variety of cards presented at point of purchase. And remember, with most international tourists already using chip cards, upgrading to a 6.0 terminal before June 2011 will allow you to claim your share of the $1.25 billion* that will be spent during next year’s Rugby World Cup 2011. To check whether your EFTPOS technology is ready, visit www.areyouready.co.nz and follow the simple online instructions. If your terminal is not up-to-date, contact your EFTPOS terminal provider as soon as possible and schedule a date for your upgrade. * Previous RWC economic impact studies: Deloitte Analysis.
eye o n th e world Holidaymakers can find Welsh products easily.
Photo: Bronwyn Matlock
Maps and wetsuits on the shopping list.
Local flavour tempts
holidaymakers Pauline Herbst talks to Roy Bone, area manager of CK’s Supermarkets and store manager of CK’s St Davids, found in the UK’s smallest city.
oy Bone is as local to St Davids as the cathedral down the narrow road, vital for a supermarket that has to deal with changing tides of seasonal tourists. As store manager of one of 23 CK’s Supermarkets (the 23rd opened in Llandysl the day after our interview) he says his greatest challenge lies in stock control: “It’s busy now, in two weeks it’ll be like a ghost town again.” Tourists, both local and international, flood the small Welsh city in Pembrokeshire between March and September, seeking sun, surf and entertainment, and a tour of the store reveals body boards and wetsuits to cater for demand. How do they cope in the quieter months? One word,“loyalty”, says the laconic Welshman. “We cope with loyalty from loyal customers.” In addition to his current role as store manager for the past 18 months, 46
FMCG september 2010
filling in for a recent vacancy, Bone has spent the past five years as area manager for CK’s, which is the largest independent food retailer in southwest Wales. Founded in 1988 by managing director Christopher Kiley (hence CK’s) after acquiring a store at Llandeilo in Dyfed, the company quickly grew, with St Davids opening in 2003 along with stores in three other areas; Hakin, Fishguard and Waunarlwydd. Bone’s foray into grocery retail started when the store opened. He finished at local school Ysgol Dewi Sant, started on the floor and progressed from there, with his days now starting at 7am and finishing “when I’m happy”. That translated to 10pm when we spoke. “It’s never the same day twice, everything always changes,” he says, one of the things he enjoys about the role although “it’s miraculous when the sun comes out how sick people can be”. Strategies to deal with the peak
season include a complement of 30 staff (up from 10 to 15) and a larger range; particularly five-litre waters, “a massive seller”; party ice, BBQs, charcoal and “the BBQ packs of meat they do in the butchery and rolls”. This year, Welsh products such as Bone’s best selling ale, Thomas Watkins, have been highlighted for the first time to make it easier for holidaymakers to identify. These include delicious locally made Welsh cakes and jam, Hollybush butter, cheese and beef. St Davids location on the Pembrokeshire coast makes it seem remote, more accessible by smugglers ships than by road, logistically daunting if you don’t go local. Not so. “We centralise everything via our warehouse and because of the size of the company we have our own lorries,” says Bone. “If we need to send another lorry down, it’s sent,” catering for holidaymakers and locals alike.
Big changes to employment law Employment law can be a minefield. New policies could help. By Trina Snow At the 2010 National Party Conference in Auckland, Prime Minister John Key announced a number of significant changes to employment law. Essentially, the Nationalled Government intends to implement the remainder of the policies promised in its election manifesto. Overall, Nargon supports the intent and direction of the new policies which we believe are sensible and balanced. In particular, the Government moving to extend the 90-day trial employment period to all companies and addressing the most pressing issues with the Employment Relations Act and Holidays Act. The key policies for the supermarket sector are: • Extending 90-day trial periods to all workplaces: This is of benefit to larger stores and will give owners more confidence to hire, particularly people who might otherwise struggle to gain a first job. • More focus on substance rather than process in personal grievance cases:This will add clarity and reduce vexatious or opportunistic claims. • Simplifying the Holidays Act: A long overdue move which will make it easier for employees and employers to understand their rights and obligations. • Holiday pay and other entitlements calculated based on the average of an employee’s pay over the previous year: When implemented, this will remove one of the major irritants with the current legislation. • Employees able to cash in the fourth week of annual leave but only if they choose to: We know this is often requested by employees who want to make their own decisions to meet their own priorities. • Employers and employees able to agree to transfer the observance of public holidays to another working day:This is a step towards flexibility and particularly welcome in su-
Trina Snow, executive director, NARGON.
permarkets which are often culturally diverse workplaces. • Employers able to ask for proof of illness or injury after one day of sick leave:While controversial, if used correctly this move will reduce pressure on employees to cover for others and will help stop a few people taking advantage. • Early mediation services without representation, prior to any formal mediation: Overall, it should bring faster resolutions at less cost. • Union access to the workplace will require employer consent: The policy is fair to both parties as employers cannot unreasonably withhold consent. • A code of ethics for employment advocates: This is needed to address the rise of some questionable practices, including no-win/no-fee advocates. • Allowing employers and employees to communicate directly during collective negotiations: This is a common sense step which will encourage better communication and reduce misunderstandings during bargaining. • Nargon understands that the Government will introduce separate bills to amend the Holidays Act and the Employment Relations Act. Following their first readings, the bills will be sent to the Transport and Industrial Relations select committee for public submissions. The select committee is likely to report back to Parliament in time for the changes to be passed by the end of this year. Commencement dates for the changes may vary but they are expected to be in force by mid-2011. A number of political parties and unions have indicated they are opposed to some or all of the proposals. However, Nargon believes these policies should be supported because they are balanced, sensible and will address a number of long-standing concerns for companies of all sizes.
september 2010 FMCG
BP oil and the
spill By Trudi Caffell
FMCG February 2010
On April 20, when the Deepwater Horizon oil-rig exploded, killing 11 platform workers and injuring 17 others, BP probably didn’t realise at first the full impact the disaster would have. BP, the third largest energy company and the fourth largest company in the world, has since seen its stock prices fall dramatically, its reputation left in tatters and the company subject to takeover rumours. A previously flourishing multinational that hadn’t seen a loss in profits for over 18 years suddenly dipped into US$17 billion losses in the second quarter of this year because of one single event. That single event was the largest marine oil spill in the history of the petroleum industry. It stemmed from a sea-floor gusher, which released approximately 4.9 million barrels of crude oil into the Gulf of Mexico before it was successfully sealed on July 15. The fallout from the disaster has included damage to the environment, the local marine environment devastated, and a terrible hit to the economy of the region, which relies on its tourism industry and fishing in the gulf. This has led to a backlash against BP around the world by consumers angry at the seemingly cavalier attitude of the multinational. In the
US, BP service stations – which are actually owner operated, and not run by the company – have been hit by vandalism, with angry protesters dumping rubbish, and smearing black paint and mud to imitate the oil spill. In both the UK and US, calls for boycotts have led to reports of reduced sales at BP stations. A ‘Boycot BP’ facebook page has over 850,000 supporters – and counting. In the face of all this anger, BP has been attempting to clean up the mess, both to the Gulf of Mexico and to its branding. Even President Obama is getting in on it – photos of him swimming in the gulf with his daughter, trying to encourage Americans back to the region, hit the stands in the middle of August. The company has also put US$20 billion towards paying claims arising from the oil spill and has given Florida US$25 million to promote its beaches, with plans to give Alabama, Louisiana and Mississippi US$15 million each to do the same. In New Zealand, BP has over 300 BP service stations, with more than 100 of those owner operated. BP also supplies fuel to Gasoline Alley and Pak’nSave outlets. Despite the worldwide backlash, according to New Zealand’s BP spokesperson Emily Watt, in New Zealand the company has not had any acts of vandalism against any of its stations, and the
oil spill has not affected its business. “Most New Zealanders understand that BP is made up of a number of independent dealers as well as company-owned stores, and we’ve had a number of calls of support from New Zealanders,” she says. Meanwhile Greenstone Energy, the New Zealand-owned consortium that purchased the Shell retail network in April, says it has had an increase in sales, despite a drop in general fuel sales in the past few months. However, company spokesman Jonathan Hill is quick to point out these increased sales may not be due to the BP oil spill. “The Shell network is now wholly New Zealand owned, which is a point of difference that our customers seem to value,” he says. “We have seen increasing market share, with increasing numbers of customers choosing to shop with us. I can’t tell you what is 100 percent responsible for that, but we think that a key driver is that New Zealanders like supporting a New Zealand-owned company.” It seems the outrage evident overseas has failed to manifest here in New Zealand. Perhaps we’re just a bit too far away from the action. Perhaps it’s our notorious apathy for social and political issues. Whatever it is, BP New Zealand seems to be weathering the storm that has been punishing others overseas. l september 2010 FMCG
AWARDS » The industry celebrates its achievers
Coca-Cola won the Best Direct Supplier Industry award. Pictured is George Adams, MD; Terry Burbidge, regional sales manager UNI; and Phaly My, district sales manager North Team UNI.
NZACS chairman Roger Bull and administrator Kathy Faulkner prior to announcing the Peter Jowett awards.
NZACS chairman Roger Bull.
FMCG september 2010
The New Zealand Association of Convenience Stores held its annual conference coupled with the Peter Jowett Industry Awards dinner on 19 August at the Heritage Hotel. Speakers included Geoff Smith of Nielsen and David Singer of Coalface. Smith presented the Nielsen Social Media Report: New Zealand Wave 2: 2010. Entitled Separating the Hype from Reality, the report focused on the explosive rise in social media citing 1.8 million adult New Zealanders interacting with people via social networking sites in the past 12 months alone. More than 1.4 million read blogs and 210,000 posted messages on Twitter. As Smith says, with figures like that it is increasingly important to: “Monitor what is being said about your organisation and brand online as consumers are taking their views public, and their readership is growing.” A more sobering report showed decline in both turnover and profit margins in convenience stores over the past five years. David Singer talked the audience through the latest State Of The Industry Survey New Zealand for the year ended 31 December 2009, available to members of the association. On a more positive note, the industry celebrated its achievers, both the winners of Peter Jowett Industry awards, who will go on to represent New Zealand at the Global Convenience Industry Achievement Awards in Atlanta in October 2010, as well as supplier and retailer awards.
Peter Jowett Industry awards: Winners • Retailer award winner – Jeremy Clarke (Chevron) • Supplier award winner – Matthew Topp (Nestlé) Finalists • Timothy Fulton (Mobil Oil) • Mandy Chan (Red Bull) • Priyang Patel (Imperial Tobacco) Industry award winners: Best Direct Supplier: Coca-Cola Best Indirect Supplier: Imperial Tobacco Best Foodservice Chilled Supplier: Mrs Macs Pies Most Improved Indirect Supplier: Nestlé Most Improved Direct Supplier: British American Tobacco 2010 Convenience Head Office Award – Best Overall Direct Supplier: Frucor Beverages 2010 Convenience Head Office Award – Best Overall Indirect Supplier: Red Bull Best New Product Launch Winner for 2009: Coca-Cola Limited Edition Summer Cans 440ml Best Retailer for Store Compliance: BP
Impact of social media on purchase behaviour Figure 5.8 Actions done as a consequence of viewing online video/listening to online audio compared to reading online consumer comments
Visited the product / service providersâ€™ website to find out more
Used a search engine to find suppliers of the product / service
A very high number of people are taking direct research and purchase action after reading other consumer comments online. However - the use of rich media (video or audio online) is even more likely to result in action.
40% Actually purchased the product / service 37%
34% Visited the store / business 29%
Contacted the product / service provider to find out more
Video and/or audio Reading Comments
Source: Nielsen Social Media Report 2010
* source: Nielsen Online Social Media Report 2010
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Tax hike questioned The New York Association of Convenience Stores has asked governor David Paterson to issue an executive order suspending the 58% tax hike on cigarettes that took effect 1 July, in fairness to long-suffering retailers who state and federal courts have now deprived of the “other side of the bargain” – the promised level playing field starting 1 September. “In light of the court rulings blocking the start of tax collection on Indian sales of cigarettes to non-Indians, the New York Association of Convenience Stores respectfully requests that you temporarily suspend the cigarette excise tax increase that was enacted 1 July,” wrote NYACS
president James Calvin. “The double-edged bargain you made with the Legislature in June was to sharply increase the cigarette tax rate on July 1, but to mitigate its negative effect on tax-collecting retailers by capturing taxes on tribal sales to non-Indians starting September 1. If one side of this bargain has been placed on hold, it’s only fair that the other should be put on hold as well.” Since the cigarette tax hike jumped from $2.75 a pack to $4.25 a pack as of 1 July, NYACS said mom-and-pop stores have lost 25% to 45% of their cigarette unit sales, virtually all of it because of the ensuing wave of cigarette tax evasion it triggered. “They shouldn’t have to continue to endure this economic hardship while courts allow their Native American competitors to keep thumbing their noses at New York State’s tax law,” Calvin wrote. “We share your deep disappointment in the federal and state court rulings on the cigarette tax collection issue,” he told Paterson. “We were looking forward to a level retail playing field finally being restored. We nonetheless commend you for your courageous leadership on this issue, and look forward to supporting your efforts to lift the temporary restraining orders.” l
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Tide turning against tobacco display bans Will the ban be enforced or dropped? By trina snow In the dying days of the Labour government in Britain, Gordon Brown and his cabinet passed a ban on tobacco product displays in stores.This ban is due to come into force for major stores (including all the big chains) in October 2011 and for small shops in October 2013. The legislation, fiercely opposed by retailers, looks increasingly like it will be scrapped by the new Conservative-Liberal Democrat coalition government, a move which will have some impact on the ongoing debate around the same issue in New Zealand. During the British election campaign in April 2010, the Conservative Party said it was, “committed to reviewing the proposed ban” while the Liberal Democrats said they were, “not in favour of a ban on tobacco displays”. The subsequent appointment of Earl Howe as a junior health minister is being taken as a signal that the ban is under serious threat because he has long opposed the legislation. Given the extremely poor state of Britain’s public finances and general economy, the new coalition government would have noted closely the results of a survey which found that 68% of corner shopkeepers in the UK believed a ban on tobacco displays in shops could directly threaten the viability of their business. Similarly, a public poll found that 80% of respondents wanted the ban overturned or at least would not oppose the ban being dropped. More recently, opponents of the ban were pointing to a report from the Institute of Economic Affairs finding that countries which introduce a ban on tobacco displays bans could risk “significant economic damage and a deterioration in public health”. Those countries include Iceland, Ireland, Norway, Thailand and Canada, which all have some form of ban. The House of Commons in Britain was also presented with an independent research paper from the UK Democracy Institute showing that the ban on display-
Trina Snow, executive director, Nargon.
ing tobacco products in retail outlets is not achieving any of the public health objectives claimed by antitobacco groups. The paper studied Canada, Iceland, Ireland and Thailand and found the results were largely neutral or even negative. The paper argues that while the ban on tobacco displays in Canada has been ineffective in reducing tobacco consumption and smoking prevalence among youth smokers, it has succeeded in moving tobacco sales away from legitimate retailers and towards the illicit tobacco market. All of this research has resonance in New Zealand because the countries studied are often the same countries cited by lobbyists here who are actively advocating for a similar ban. The previous Labour government seemed reasonably supportive of the idea but it was not able to implement the findings of the select committee report before losing power at the last election.This year, the Maori Party is continuing to call for a displays ban as a part of its ongoing anti-tobacco crusade. It is instructive to note that both Denmark and Sweden decided recently against implementing a display ban on the grounds they did not believe the ban would be effective. These countries usually adopt quite similar policies to Norway but have decided to take a different position on this issue. The New Zealand Government’s official policy is that it is monitoring the international evidence but does not see the need for a blanket ban at this time. Nargon supports this stance arguing more can be achieved through education programmes and tough enforcement of current laws. It should be noted that Nargon supports the right of every retailer to make their own choices, including either not stocking tobacco at all, or not displaying it in their own shop.
september 2010 FMCG
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Protect your trade mark
Carrick Robinson is a partner at intellectual property law firm James & Wells. Email: firstname.lastname@example.org
Registering a trade mark is not enough if you don’t take steps to enforce it. By Carrick Robinson
It’s encouraging to see that many businesses realise the importance of protecting their valuable trade marks, and make the effort to register these with the Intellectual Property Office. Even so, a lot of businesses do not understand the overlap between the rights gained from registering a trade mark, and the unregistered rights derived from simply using a mark. Such unregistered rights can be equally as effective as a trade mark registration for preventing a third party from using the same or a similar mark. Let’s assume Good As Gold Limited is a well-established New Zealand business, which has produced and marketed a cola beverage for the last 15 or so years, under the brand Groovy. The brand is reasonably wellknown in the industry and amongst potential consumers. Good As Gold recognises the importance of protecting its intellectual property and has registered Groovy as a trade mark with the Intellectual Property Office. Around three years ago there was a flurry of activity as a number of new businesses entered the market with competing products. One of these new competitors was a significantly larger company from Australia, Move Over Pty Ltd. As a result of a concentrated and extensive marketing campaign, it took Move Over only a short period of time to establish a significant reputation for its Groovi product in the marketplace. At the time Good As Gold was comfortable to tolerate Move Over in the marketplace. In fact, due to the similarities between the brands, Good As Gold thought it could benefit from the competition, and actually found sales of its Groovy beverage increased as a result of Move Over’s marketing activities. However, not everything remained ‘good as gold’
for long. Good As Gold found itself on the receiving end of a letter from Move Over’s lawyers, alleging that Good As Gold’s use of Groovy was misleading and deceiving consumers, amounting to a breach of the Fair Trading Act. But hang on; as Good As Gold has registered the trade mark Groovy, doesn’t it have the exclusive right to use that mark in New Zealand? The answer to this is “yes”, but owning a registered trade mark does not provide a defence to a breach of the Fair Trading Act. Admittedly, this does seem to fly in the face of commonsense, but unfortunately this is the law. Even though Good As Gold both started to use, and had registered its trade mark before Move Over entered the market, it allowed Move Over to build a reputation in its Groovi trade mark. Although Good As Gold was continuing to use its mark as usual, this use was confusing those members of the public who were now more familiar with Move Over’s Groovi brand. Good As Gold’s mistake was not to promptly take action to stop Move Over from using a substantially identical brand as soon as Good As Gold became aware of this use. As the owner of a registered trade mark, Good As Gold would have been in an excellent position to stop Move Over in its tracks as soon as Move Over entered the market. Instead, it allowed Move Over to establish a reputation in its brand. While at the time Good As Gold may have seen no major problem with this, you can see how this proved to be not such a good idea further down the track. Registering a trade mark is only part of the process. All brand owners must actively monitor what the competition is doing, and should promptly take steps to stop any infringement of their intellectual property rights. Failing to do so will send the wrong message to the market, in which case a trade mark registration is not worth the paper it’s written on. september 2010 FMCG
the business of liquor reselling 56
FMCG February 2010
The classic Shannon Thorpe, DB hospitality development manager is like the pub whisperer, taking old, rundown, country pubs serving deep fried ‘goodness’ and turning them around. His not-so-secret vision: the Classic Pub Network. BWS was invited to the official launch of the first of the Classic Pubs, where the refurbished Parua Bay Tavern was showcased to an extended contingent of DB Breweries tion from Great concentra e g th management and selected guests. the teams durin Quiz. There is no better way to have a b Pu Kiwi captive audience than on a classic Pauline Herbst heads up Kiwi road trip and Thorpe took the opportunity to explain the concept to Parua Bay with of refurbishing traditional pubs in full. DB Breweries for a road “It’s a part of the market that is under a bit of stress. They have trip to remember.
1. Norm McLeod, former publican, stands in front of an image of himself taken approx 50 years ago. 2. Mayor Stan Semenoff, DB’s Brian Blake and Shannon Thorpe. 3. The pool table felt arrived in the nick of time. 4. Fisherman. 5. Emma and Murray Owles. 6. If you look very closely on the top shelf at the Puhoi Pub you’ll see an historic bottle of Double Red.
road trip come into decline in terms of sales and beer volume, mostly because they’ve lost their relevance to New Zealanders. They have failed to meet and change within an evolving market as consumers demand different things; better food offerings, clean environments that are family and female friendly, modern décor, more signage, and more use of the outdoors, which has become a key driver for hospitality. “DB has reinvested back into this segment of the market to celebrate what makes these traditional pubs iconic. So the major thrust is all about attracting a wider audience while increasing relevance to locals and attracting those occasional visitors on road trips. We want these classic pubs
to be the place you stop at when you go away for the weekend. There is also potential for these pubs on the tourist trail.” DB is reinvesting through a multipronged consultancy and support package which includes menu development. It’s all about stepping into local, seasonal food dishes, with Thorpe asking: “What food are you or your region famous for? We have also provided operational support with staff training, brand and theme development which is key, it’s about reinvesting in the bar brand and telling the stories that make the pubs so special. “The new look [for Parua Bay] is going for the new brand promise: fresh food, cold beer. We wanted to make
this Classic Pub project accessible to a lot of pubs in New Zealand. So it wasn’t about spending half a million dollars or having a massive budget to get the job done, it’s about recycling, reusing and refreshing what was already there. Under $150,000 was spent in total getting Parua Bay to the right stage.” Thorpe then invited guests to make their own mind up once they got there but first, a quick lunch and pint at the historic Puhoi Tavern just north of Auckland. Could this be the next pub to join the Network? Thorpe wasn’t saying. Parua Bay Tavern lived up to all expectations and more. It’ll be interesting to see which pub is rolled out next. l september 2010 FMCG
Brewing up a celebration
MC Paul Mercu
FMCG september 2010
Froth bloomed on a thousand lips in Wellington last month as brewers from around New Zealand showcased their best beers at the 9th Beervana. The three-day event kicked off with the Liquorland BrewNZ Awards Dinner on August 26 and included a two-day public sampling that offered a dizzying range of different beers (around 170) from up to 45 premium breweries. Both the range available for tasting and this year’s record number of award entries are evidence that craft brewing is on the rise even as overall beer consumption is declining.
That Kiwi tastebuds are more discerning about their beer hasn’t escaped the big breweries, it seems. DB Breweries took out the trophy for NZ Champion Brewery after earning category trophies for European Lager Styles (Monteith’s Black), New Zealand Draught (Tui), NZ Lager & Premium Lager (Tui Blonde) and Reduced Alcohol, Reduced Carbohydrate & Glutenfree (Export 33) as well as silver and bronze awards in other categories (the full winners’ list is available at www.beervana.co.nz). Also on a winning streak was the Auckland-based Steam Brewing
DB Breweries winners Natasha O’Brien (senior project brewer), Leon Dawson (Tui Brewer), Adrian Finlayson (Mainland brewing manager), Brian Blake (managing director) and Tony Mercer (Monteith’s brewer).
Trophy Winners List
Steam Brewing’s Simon Williamson with Luke Nicholas (Epic Brewing) and Shane Morely (Steam Brewing).
Tammy Viitankangas (Aotearoa Breweries) collecting the Packaging Award from sponsor Brent Baird (Labelmakers).
Company which earned the European Ale Style Trophy with its Cock & Bull Fuggles and the NZ, US & International Ale trophy for its Cock & Bull Monks Habit. This brewery is making something of a habit of picking up awards. It recently earned seven medals at the Australian International Beer Awards. After starting out in 1995 with a little English pub (called Cock & Bull) out the front of the brewery in East Tamaki, Steam Brewing has been recognised for its dedication to quality by going on to win more than 250 trophies and medals – and now claims to be the most awarded
brewery in New Zealand (www.cockandbull.co.nz). Now in their ninth year, the awards are run by the Brewers Guild of New Zealand which represents the majority of local brewers. This year they attracted a record 446 entries, well up on the 348 entries received in 2009. Chief judge David Logsdon from the US says that the 2010 BrewNZ Awards saw brewers from around the world competing with the best of New Zealand beers in a world-class challenge. “The results show that New Zealand stands tall amongst the best beers in the world.” l
NZ Champion Brewery: DB Breweries Champion International Brewery: Boston Beer Company European Lager: DB – Monteith’s Black International Lager: The Croucher Brewing Company European Ale: Steam Brewing Co – Cock & Bull Fuggles NZ, US & International Ale: Steam Brewing Co – Cock & Bull Monks Habit Stout and Porter: Three Boys Brewery – Oyster Stout Wheat and Other Grain: Emerson’s Brewery – Dunkelweiss Flavoured & Aged Styles: 8 Wired Brewing – The Big Smoke NZ Draught: DB Breweries – Tui NZ Lager: DB Breweries – Tui Blonde Reduced Alcohol/Cabohydrate/Gluten Free: DB Breweries – Export 33 Speciality/Experimental/Aged/Barrel & Wood-aged: Epic Brewing Company – Epic Barrel Aged IPA Cider and Perry: Bulmer Harvest Cidery Packaging: Aotearoa Breweries – Mata Festive Brew: Three Boys Brewery – Pineapple Lump Porter Cask Conditioned: The Twisted Hop – Nokabollokov Morton Coutts Trophy for Innovation: Independent Liquor NZ
september 2010 FMCG
New winemaker for Amisfield Amisfield Wine Company has appointed Stephanie Lambert as its chief winemaker. Thirty-four-year-old Lambert holds a PhD in Oenology from the University of Adelaide and has gained experience in Australia, the United States and Burgundy in France. Initially she was employed at Sileni Estates in Hawkes Bay as assistant pinot noir winemaker followed by a year as the winemaker responsible for red wine production. “But I always had a dream of making pinot noir under snowcapped mountains. I was fortunate enough, two years ago, to be appointed assistant winemaker at Amisfield. It is certainly a realisation of my dream to become the chief winemaker for this distinctive label,” says Lambert. Lambert says the “hands off” approach to winemaking at the company’s state-of-the-art wine production facility at Lowburn is an important feature of the winemaking process, focusing on the Amisfield concept of ‘grown not made’. “This is so much in line with my own philosophy for making wines with integrity and purity from quality grapes. The standard of viticulture is extremely high and there is an incredible sense of place at Amisfield with the vineyards
surrounding the winery and all the winery activity concentrated in one spot.” Amisfield general manager Fleur Caulton says: “Stephanie has an excellent background in winemaking and a lot of passion for her work. We are fortunate to have someone of her calibre leading the winemaking team.” l
Fashion legacy goes local Absolut Vodka has once again renewed sponsorship of New Zealand Fashion Week and entered into a partnership with local designers Adrian Hailwood, Federation and Lonely Hearts. Over the last 20 years Absolut Vodka has collaborated with an array of the world’s top fashion icons to produce a host of unique and innovative fashion creations. The first Absolut fashion piece was a silver mini-dress made by the designer David Cameron and shot by legendary fashion photographer Steven Meisel for a campaign that ran back in 1988. Ever since then, Absolut fashion projects have reached far beyond the inner fashion circles, with some of the world’s most famous international designers creating fashion pieces for Absolut including Tom Ford, Stella McCartney and Jean-Paul Gaultier. One lucky fashionista will have the chance to have a bespoke, custom-made fashion item created specially for them, just by entering the Absolut Fashion competition online at www.absolut.com/nz from 1 September to 15 October. Whether it is a cocktail dress, a coat or the perfect shirt, the winner will collaborate with their
FMCG september 2010
designer of choice to have their ultimate fashion item tailor-made. Those who don’t get the chance to experience this oncein-a-lifetime opportunity will also be in to win a selection of fashion items from the designer’s current collections at www.absolut.com/nz drawn throughout September. Also available throughout the promotion will be three unique Absolut designer cocktails that have been inspired by Adrian Hailwood, Federation and Lonely Hearts and created by Absolut. “I always enjoy collaborating with creative brands like Absolut,” says Hailwood, who also collaborated with the company in 2005 when he joined nine other designers from around the globe to produce an Absolut bespoke bag. The Absolut designer cocktails will be sold throughout September in participating bars, including the Absolut Studio – a creative space designed to showcase the best of fashion, art and music at New Zealand Fashion Week. l ONLINE: Check out Absolut’s Fashion Designer Cocktails at www.fmcg.co.nz.
McCashin’s Brewery and Hancocks join forces McCashin’s Brewery in Stoke, Nelson has appointed Hancocks Wine & Spirit Merchants as its distributor for the New Zealand domestic market. Both McCashin’s Brewery and Hancocks are New Zealand owned and operated companies with a strong family history. The partnership will see Hancocks responsible for McCashin’s portfolio of premium brands, including Rochdale Traditional Cider, Frute Real Fruit Cider and 26000 Vodka. McCashin’s Brewery and Hancocks will also be launching a new range of premium beer into the New Zealand market later in the year. Dean McCashin, of McCashin’s Brewery, says: “Hancocks
has an impressive track record for both off-premise and on-premise led brand building and we are excited about the potential of this partnership. “We feel that with these strong credentials and complementary brand portfolio, Hancocks is the ideal partner to build on the successful growth of our brands in New Zealand.” Hancocks has an extensive wine and spirit portfolio for many renowned local and international brands. Specialising in the sale of premium brands, Hancocks Wine & Spirit Merchants are one of New Zealand’s leading brand marketers and distributors to the liquor industry. l
New World wine awards An expert panel of 12 independent judges spent two days blind-tasting and evaluating a wide range of wines in Wellington on 20-21 July for the New World Wine Awards 2010. Each wine entered into the competition is judged according to the same internationallyrecognised points system as other leading wine awards. The judges worked in panels of three to evaluate the colour, taste and smell of each wine and make collective decisions about each wine. In addition to the expert judging panel, there were eight associate judges who were selected from New World’s team of liquor managers. They also provided their opinions on each wine, but their scores did not count towards the final mark. They received specialised training and gained valuable experience by being part of the judging process, which they can then use to enhance the way they select wines for the New World cellars, and to assist customers with questions about wine. BWS readers will have to wait until the 20 September to find out the results, when they will be announced online
and in FMCG’s e-newsletter foodnews. Wines entered into the New World Wine Awards must retail for below $25 per bottle, and there must be at least 500 cases of each wine available for sale. Overall, the competition has attracted 1035 wine entries from New Zealand and overseas. Of the 160 vineyards that entered, over 50 were new to the competition, reflecting the increasing awareness and recognition of the awards among winemakers. A Top 50 selection of the awardwinning wines will be showcased in the 2010 New World Wine Awards booklet and customers will have the chance to view food and wine matches, video clips of the judging process, recipes and full competition results on the revamped 2010 New World Wine Awards website at www.newworld.co.nz. l
ONLINE: Keep an eye out for the full list of award winners at www.fmcg.co.nz from the 20 September.
Villa Maria at Commonwealth From the 20 odd international wines proposed and tasted, the 2010 Commonwealth Games Games Committee has included Villa Maria Private Bin Sauvignon Blanc in its selection for Athletes Village Fine Dining events.
september 2010 FMCG
Davidson Villa Maria’s CMO Villa Maria Estate has appointed Jo Davidson to the position of chief marketing officer (CMO). Davidson joins Villa Maria after many years in the FMCG industry, along with a successful track record in the wine industry. She has held sales and marketing roles across Europe and UK, led strategic marketing projects in Australia and run a trans-Tasman marketing team. Most recently Davidson has been working in the role of business manager for Heinz Wattie’s where she managed key business units and was responsible for the leading the consumer communication initiative ‘Food in a Minute’. As CMO she will be tasked with enhancing Villa Maria’s global brand presence and ensuring products meet the needs of the consumer. The role will also see her drive Villa Maria’s
Flagship varietal released Saint Clair Family Estate has released its new 2010 vintage Saint Clair Marlborough Sauvignon Blanc and the Saint Clair Vicar’s Choice Sauvignon Blanc. Sauvignon blanc is the flagship varietal for Saint Clair Family Estate, having been awarded an astounding 51 trophies over the past eight years. Co-owner Neal Ibbotson says: “This has been achieved through our unique quality assessment selection from the vineyards and the winery, where the sauvignon blanc is fermented in 120 small tanks, before blend selection based on quality. This quality selection system has identified sub-regions of Marlborough that produce superior sauvignon blanc, and we have expanded our production into the best of these areas.” The 2010 sauvignon blanc wines show clean, intense flavours with the classic characteristics that Marlborough has become famous for. The newly released wines are available through wine stores and restaurants throughout New Zealand, as well as from the Saint Clair Cellar Door and Café and on www.saintclair.co.nz.
FMCG september 2010
marketing strategy and brand architecture. Davidson started her new role on 23 August and says she is looking forward to the new challenge and fresh environment. “I am thrilled to be joining a company with such a strong reputation for innovation and quality,” she says. Villa Maria Estate founder and managing director Sir George Fistonich, says: “Joanna is a highly accomplished individual with an excellent track record in providing fresh insight and driving success. She will be a welcome addition to our team.” l
Distilled enthusiasm Neill Catherall, distiller and owner of Lighthouse Gin, talks love affairs and maturity. By Keith Stewart When you ask Neill Catherall why he decided on gin when he became involved in the distilling business, he offers a wry smile and gives two answers. Appropriate, because Catherall believes that the best quality spirits, gin included, are the product of two distillations, not just one. “The pragmatic reason,” he says, “is that if you are going to produce a dark spirit, like brandy, whisky or rum, you have to give it a whole lot of time in barrel. Stock is tied up, and so is capital. Simply it is more expensive and you are tied up personally. As we [the partners in Lighthouse] are no longer 15 going on 20, it quickly became obvious that dark spirits were not an option.” And the second reason? “I have had a love affair with gin for 45 years. I drink it in the summer and in the winter, and in all the seasons in between,” he says. Which is probably why Lighthouse was always intended to be the best of gins, made with quality foremost in the directors’ and distillers’ minds when they set out, first to make a suitable pot still, and then on the distilling process that would deliver their gin. Designing the pot still fell to Catherall, who also shares the distiller’s role with fellow shareholder and director, James Graham. Catherall, an engineer, designed a pot still in copper, which was built locally by Wairarapa company 2K Engineering. “To make a quality spirit, you must use copper,” he explains. “Originally stills were made of copper because it was a malleable metal and easy to work. Now we understand that copper has special properties that improve distillate quality. The copper surface on the inside of the still acts as a catalyst, which helps to clean up the distillate. In the end it produces a more pure, clean spirit.” Copper is common to the world’s great distilleries,
whether they are in Jamaica, Cognac or on Speyside. They are used by London’s finest gin distilleries as well, but what is different about Lighthouse’s process from other gin distilleries is that Lighthouse Gin is double distilled. While many gin labels claim all degrees of multiple distillation, most is single pot distilled, followed by a clarifying distillation through a column system. No other gin is actually double pot distilled in the same way the best Cognac and single malt whisky is. “Once deciding to conduct full, double pot distillation we have found that the second distillation eliminates more negative concentrates from the botanicals. Because the botanicals [the fruit and spices that give gin its distinctive flavour] remain in the still, in solution, between the first and second distillation, extraction continues and more reject characters emerge after the second process,” Catherall says. “What we end up with is exactly what Scotland’s top distillers have discovered, a much more accurately defined flavour profile.” All of which probably explains why Lighthouse is fast becoming THE gin of New Zealand’s martini aficionados. It also makes a damned near perfect gin and tonic, which is fine by Catherall, as he is a fan of both classic forms of his favourite spirit. While he couldn’t answer the question of whether he drinks more gin now he makes it, he did confide, “I am a pretty enthusiastic gin drinker”. l september 2010 FMCG
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USA Pears and NZ Pears hosted a luncheon at PIKO Restaurant in Auckland.
The Monteith’s Beer and Wild Food Challenge saw The Porch Kitchen and Bar, chef Brad King, declared the winner. Mike Oxley of Uncle Mikes BBQ was a finalist.
Absolut has renewed its sponsorship with New Zealand Fashion Week as well as partnerships with leading local designers, Adrian Hailwood, Federation and Lonely Hearts.
Has your team toasted the close of day in a remote New Zealand location? Maybe you’ve knocked off a gruelling event for charity or opened a new factory? Preserve the memory – then send it in to email@example.com.
WORLD OF FOOD MOSCOW International exhibition of food products and drinks in Russia firstname.lastname@example.org www.worldfood-moscow.com/eng
FOODTECH PACKTECH ASB Showgrounds, Auckland www.foodtechpacktech.co.nz
NARGON 2010 SUPPLIER AWARDS Bluestone Room, Auckland www.nargon.co.nz
SIAL PARIS International meeting place for the food industries, Paris, France www.sial.fr
OWN LABEL SHOW The UK’s private label exhibition, Barbican, London, England email@example.com
INTERNATIONAL GREEN WEEK BERLIN Fair for food, agriculture and horticulture, Berlin, Germany www.gruenewoche.de
WINTER FANCY FOOD SHOW San Francisco, USA www.specialtyfood.com
ISM International sweets and biscuits fair, Cologne, Germany www.ism-cologne.com
SWEETS MIDDLE EAST International exhibition for the sweets and confectionery, bakery, snack food and ice cream industry, Dubai, United Arab Emirates www.sweetsmiddleeast.com
NZACS LEADERS SUMMIT
FGC ANNUAL CONFERENCE Annual members’ conference of the New Zealand Food & Grocery Council, Sydney, Australia www.fgc.org.nz
GOOD FOOD & WINE SHOW BRISBANE Australia’s biggest gourmet deli, most fascinating kitchen shops and delicious restaurants, Brisbane, Australia www.goodfoodshow.com.au FHC CHINA 2010 The 14th International Exhibition for food, drink, hospitality, foodservice, bakery and retail industries, Shanghai New International Expo Centre (SNIEC) China GLUTEN FREE FOOD & ALLERGY SHOW Christchurch Convention Centre, Christchurch www.glutenallergyshow.co.nz
FRUIT LOGISTICA International trade fair for fruit and vegetable marketing, Berlin, Germany www.fruitlogistica.com
BIOFACH 2011 World organic trade fair and Vivaness 2011 (Trade Fair for natural personal care and wellness), Nuremburg, Germany www.biofach.de/en
GULFOOD DUBAI www.gulfood.com
MARCH 1-4 11-13
FOODEX International food and beverage exhibition, Makuhari Messe, Tokyo, Japan http://www3.jma.or.jp/foodex/en/ NATURAL PRODUCTS EXPO WEST International trade show for the natural, organic and healthy products industry, Anaheim, USA www.expowest.com
Is your show featured here? If you’d like to be included please email: firstname.lastname@example.org.
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