Food Magazine November 2013

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Foodmagazine Food INGREDIENTS | PROCESSING | SAFETY | PACKAGING | EXPORT

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NOV/DEC 2013

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PLUS: The struggle to source Australian | Manufacturers' marketing goes social

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WELCOME

The year that was...

Well folks, that’s it for another year. And what a year it’s been.

W

EDITOR: Danielle Bowling danielle.bowling@cirrusmedia.com.au

elcome to the final issue of Food magazine for 2013.

I’m sure you’ll all agree the year’s flown by, and if you’ve been as busy as we have, you must be counting down to the Christmas break too.

The team here at Food mag has worked tirelessly to create seven fantastic reads over the course of the year, while also once again delivering an exceptional awards program. This year, the Food Magazine Awards was an enormous success with a record number of entries from food manufacturers, both young and old.

We’ve also spent a lot of time developing our online presence, and we’ve had some real success here, even if I say so myself! Visits to www.foodmag.com.au have increased an incredible 75 percent year on year, proving the site and its accompanying twice-weekly e-newsletter are an indispensable source of industry news for the food and beverage manufacturing industry.

I could go on, detailing our growing social media presence and exciting plans for 2014, but for fear of getting a big head, I’ll stop. All in all, it’s been a busy year!

I thought I’d leave you with an interesting little list of the

most read stories on our website for 2013. While there are a couple of straightforward, good news stories in there, the overwhelming theme seems to be one of change, whether it be in terms of regulation (labelling and/or animal welfare) or ethics and sustainability.

Top online stories for 2013 1.

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QLD government increases free range densities by 667 percent Monsanto herbicide linked to cancer and Parkinson’s Byron Bay Cookie Co crumbles, supplier: “I could smell a rat” New facility gives Garlo’s a bigger slice of the pie market Global warming is causing apples to lose crunch: study The great palm oil debate: how the consumer turned an industry on its head 7. The five bottlenecks in Australia’s wine industry 8. ‘Up & Go claims are healthy’, Sanitarium hits back at Choice 9. Finalists revealed: Food mag awards 10. Red Bull launches new Red Bull Zero I wonder what 2014 has in store for us! I can’t wait to find out.

INSIDE 04 NEWS

10 COVER STORY

Big retailers a global challenge; Clover an innocent victim; Fake beef in China.

Multipack’s new Moorebank facility puts Sydney’s food packaging in the spotlight.

06 WHAT'S FRESH

12 FOOD MAGAZINE AWARDS 2014

celebrate innovation and thought-leadership in manufacturing.

20 PACKAGING

16 SNACK FOODS

The AIP helps address packaging education in Africa.

The high Aussie dollar & cheap imports make sourcing locally a real challenge.

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Nominations are now open for the 10th annual Food Magazine Awards, which

We profile some recent successful experiential marketing campaigns by leading food manufacturers.

22 ON THE SHELF Three of the newest products on Australian retailers’ shelves.

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WHAT'S

HOT ONLINE W W W. F O O D M AG .C O M . AU

Big retailers a global challenge

FoodMagAU posted:

for food and beverages," Pititto said.

Getting in the way of manufacturers' ability to capitalise on export opportunities is the flow-on effects of the high Australian dollar, increasing logistics and distribution costs as well as pricing, with 92 percent of Australian F&B executives expecting an increase in raw material costs in the next 12 months, compared to 85 percent of the world.

The study found that many Australian companies believed that government assistance to address logistics and distribution costs was a key area that would help their business to capitalise on Asian export opportunities.

Clover an innocent victim of Fonterra's contamination scandal

At the launch of Mondelez International's new freeze-dried coffee brand, Carte Noire.

Served with delicious granola!

@foodmagaus tweeted:

Scots to trial whisky-fed salmon to boost sustainability @TasteNewsCorp commented: So a salmon walks into a bar ... and the barman looks at him and says to himself ...

IÂ smell something fishy.

FoodMagAU posted:

Barilla chairman angers gay rights activists Sharyon Bellwood commented: What a homophobe, yeah I won’t be buying it again.

Pete commented on article:

McCain Foods announces closure of SA potato plant and job losses AUSTRALIA STOP BUYING IMPORTED PRODUCTS (when possible). Australian Govt must make importers’ overseas suppliers meet the same standards as Aust suppliers. Wonder if imports are as cheap then????

We must act now.

4 Foodmagazine | Nov/Dec 2013 | www.foodmag.com.au

Australian food and beverage manufacturers aren't the only victims of powerful retailers, with recently released research claiming it's a global challenge.

Launched by advisory firm Grant Thornton, Hunger for growth: Food and Beverage looks to the future, found that the rise of mega-retailers around the world has left industry executives wondering how they can get ahead, with more than half rating market dominance by retailers as a significant or moderate risk to their supply chains and organisations.

National leader food & beverage, Grant Thornton France, Vincent Frambourt, said threequarters of food and beverage organisations sell into supermarkets or grocery stores, and this is a world-wide problem.

"Food and beverage companies cannot do much to fight against retailers' power," he said.

Grant Thornton Australia's food & beverage national leader, Tony Pititto, said Australian food and beverage companies were similarly affected by the global rise in mega-retailers, with Coles and Woolworths controlling some 70 percent of retail sales.

"The market power of the mega-retailers is an international phenomenon with small retailers and suppliers getting squeezed everywhere around the world," Pititto said.

Suporting Thornton's comments, the study found that nearly half (48 percent) of food and beverage executives are considering merger and acquisition opportunities as a way to strengthen their market position over the next 12 months.

Thornton suggested industry executives improve their bargaining power by diversifying customer and product portfolios, building product leaders and developing niche markets.

Despite their concerns, the outlook for food and beverage companies is positive and is poised for growth amid an improved global economic outlook.

This is particularly true in Australia, which is leading a wave of renewed optimism as more producers look to China and South East Asia as export markets.

"China alone has seen a 15 to 20 percent rise in salaries, which is helping fuel consumer demand

Despite being an innocent bystander, Clover's sales have taken a hit thanks to Fonterra's recent food safety scare, which saw widespread recalls of infant formula products.

Functional ingredient manufacturer, Clover says the company has been "adversely affected" by the contamination scare, and expects sales revenue in the first half of the financial year 2014 to be approximately 20 percent lower than the same period of the last year.

"As a consequence of extensive media coverage precautionary product recalls in several countries, including New Zealand and China, the heightened concern about the safety of infant formula has resulted in a decline in imported infant formula sales in some markets," a Clover statement reads.

"Clover has a diversified sales strategy and supplies specialised encapsulated liquid ingredients to both local and international infant formula manufacturing companies. As a result of these market events, however, demand for Clover's ingredients has been adversely affected and as expected, sales have declined."

In early October, Danone, the manufacturer of Karicare infant formula products, announced it's seeking full compensation from Fonterra for damages caused by the product recalls.

Thirty-eight tonnes of the whey protein concentrate, manufactured at Fonterra's Hautapu

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NEWS

plant in May 2012, was believed to have been contaminated by an unsanitary pipe, and the scandal, which unfolded in August, resulted in the resignation of managing director, Gary Romano, as well as two senior managers being place on leave, effective immediately.

However it was later uncovered that the bacteria found in the whey protein concentrate wasn't clostridium botulinum as originally thought, but was acutally identified as clostridium sporogenes, which doesn't lead to any known food safety issue.

Graziano da Silva stated that innovative thinking from industry is key to encouraging retailers and individual households from throwing out/wasting food.

In addition to paving the way to ending world hunger, the UN also sights food waste as the third largest carbon emitter.

The FAO released a report in September which provided a comprehensive global account of the environmental impact that food waste creates along the supply chain, with a focus on the impacts on climate, water, land and biodiversity.

UN calls for innovative thinking to reduce food waste

20,000kg fake beef seized in China

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The United Nations Food and Agriculture Organisation (FAO) has called for innovative thinking in an effort to measure and cut global food loss and food waste.

FAO director-general Jose Graziano da Silva said that cutting global food wastage is key in the battle to eliminate hunger as an estimated 1.3b tonnes, or one-third of food produced for human consumption is wasted - costing up to $750b annually.

"If we reduce food loss and waste to zero it would give us additional food to feed 2 billion people," said Graziano da Silva at the Global Green Growth Forum (3GF) in Copenhagen recently.

"One of my priorities in FAO is opening our doors to potential allies. Fighting food loss and waste is clearly one area in which partnership is needed.

Developing a global protocol can help provide clear measurements and indicators on which we can base guidance on how to reduce food loss and waste."

The FAO states that the majority of food waste occurs during post-production, harvesting, transportation and storage. Food waste and is mainly related to poor infrastructure in developing nations while in developed nations, the problem lies within the marketing and consumption stages.

"We already know a lot about how to cut food losses," he said. "But we need to invest more in a number of areas, especially in infrastructure such as roads and cold chains, but also improving market information. We also need to close the gap between the knowledge we have and what farmers and other actors in the food chain are actually doing."

More than 20,000kg of fake beef has been seized by police in Xi'an, Shaanxi province, with six meat workshops shut down.

The meat was actually pork and had been treated with chemicals including paraffin wax and industrial salts so it looks like beef.

According to Shanghailist, more than 1,500kg of the meat had been sold to local markets.

Six workshops producting the fake beef have been shut down and the meat seized as evidence.

This follows the horsemeat scandal which errupted in Europe earlier this year, where brands including beef producer JBS; supermarket chain Tesco; and frozen food company, Findus, were all forced to pull their products from shelves.

A French meat processing company, Spanghero, was at the centre of the controversy, accused of passing off 750 tonnes of horsemeat as beef.

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Advancing

Australia ...not so fair

The importance of supporting the Australian food manufacturing sector has never been so important, or so difficult. Aoife Boothroyd reports.

Y

ou’d be hard pressed to come across a topic in the Australian food manufacturing sector that generates as much passionate discussion as how to best support Australian brands using Australian ingredients.

A high Australian dollar – despite easing recently – coupled with an influx of cheap imported products, a decline in export markets and ambiguous country of origin labelling legislation have all impacted on the profitability of local businesses.

6 Foodmagazine | Nov/Dec 2013 | www.foodmag.com.au

2013 has been a particularly challenging year. Unable to compete with cheap imported products, SPC Ardmona was forced to cut 61 fruit growers’ contracts, and was then denied provisional safeguard tariffs against cheap imported tomato and fruit products as part of the Productivity Commission’s accelerated report.

Food processor Simplot announced that two of its plants were under threat of closure due to a highly competitive industry and unsustainably high costs,

and Gourmet Food Holdings, which owned iconic brand Rosella, was placed into receivership.

South Australia’s Spring Gully also entered voluntary administration earlier this year with debt of more than $3 million, only to be saved – largely – by a wave of local consumer support.

So what needs to be done in order to save our local food processors and iconic brands? And what’s stopping them from sourcing Australian inputs? »

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Made in Australia? Or from local and imported ingredients?

In August this year, the Australian Made campaign‘s chief executive, Ian Harrison, called for a strategic partnership between the government and Australian Made to develop a plan to reduce consumer confusion surrounding country of origin labelling.

The ambiguous term ‘Made in Australia from local and imported ingredients’ does not distinguish between ingredients and packaging and has been a long-standing matter of contention within the industry and amongst consumers.

According to the Australian Competition and Consumer Commission (ACCC), the ‘Made in’ claim means that the product was made (not just packed) in the country stated, and that at least 50 percent of the cost to produce the product was incurred in that country. Products that use the ‘Made in’ claim may also contain ingredients from other countries – hence a product with a ‘Made in Australia’ label won’t necessarily contain Australian ingredients.

The ‘Made in Australia from local and imported ingredients’ claim can also be

Made’s strict ‘made in’ test.

“Being Australian is a decided advantage - you will get a premium for your product, particularly if it is dairy-related at the moment. And that premium is justified because Australia has a reputation for high product standards, high safety standards, and it reflects our clean green environment,” says Harrison.

“In an environment where increased costs and a high Australian dollar have seriously undermined the competitiveness of many Australian products, country of origin is an asset we should be driving much, much harder.”

Cheap imported ingredients come at a cost to Aussie producers Country of origin labelling is just one of the many factors that is affecting the livelihood of the Australian food manufacturing industry. Australia, even without the high Australian dollar, is still an expensive place to do business.

Australia’s wage structures are amongst the highest in the world, industrial arrangements are quite inflexible

low cost imports were favoured by major supermarket chains as it enabled them to take advantage of the exchange rate appreciation and import products at an extremely low cost.

In an attempt to tackle the issue, SPC Ardmona applied for temporary safeguard tariffs of at least 30 percent for retail canned tomatoes and 45 percent for multi-serve fruit products for 200 days, consistent with the World Trade Organisation (WTO) Safeguards Agreement.

However in late September, findings in the Productivity Commission’s Accelerated Report indicated that provisional safeguards were not warranted, and as such, the application was denied.

“This is extremely disappointing for SPCA, growers and the Goulburn Valley region. We disagree with the Commission’s conclusion in the reports. We have provided compelling evidence that in these circumstances the immediate provision of safeguards should be applied,” said managing director SPC Ardmona, Peter Kelly.

Although the Productivity Commission’s full report is not expected to be

"Being Australian is a decided advantage - you will get a premium for your product, particularly if it is dairy-related at the moment." confusing as it doesn’t communicate to the consumer what proportion of the ingredients are local, and what’s imported. “‘Made from imported and local’, or ‘Made from local and imported’ – depending on the order in which the two words are placed, is supposed to infer whether the majority of the product is imported, or whether the majority of the product is local,” Harrison told Food magazine. “But the public doesn’t understand that.”

Australian Made’s iconic green and gold kangaroo logo has been used by thousands of businesses for nearly three decades to identify genuine Australian products and produce in Australia and overseas. Harrison says that the logo serves as a powerful marketing tool for those companies that meet Australian

and government-related charges coupled with high power costs seem to be increasing year on year.

One manufacturer whose struggles have been highly publicised is SPC Ardmona.

The company, which makes a commitment to sourcing a significant percentage of its ingredients from Australia, was forced to cut 61 growers’ contracts from Victoria’s Goulburn Valley region – home to SPC Ardmona’s iconic Goulburn Valley Fruit brand – in April this year.

The company, which is the largest remaining fruit and vegetable processor in Australia, said that the decision was not made lightly, and was a direct result of a huge rise in the Australian dollar that fuelled imports to record levels. The

8 Foodmagazine | Nov/Dec 2013 | www.foodmag.com.au

finalised until 20 December, Kelly said that the findings “further delay action at a critical stage in our business and seasonal cycle and perpetuates uncertainty in the region.”

Some positive news for the food processor was the recent announcement of a $7 million deal with retail giant Woolworths. Under the new deal, Woolworths will source 13 lines of canned fruit from Goulburn Valley growers for its private label ‘Select’ lines, which were previously imported from South Africa and Thailand.

The power of the consumer Even if SPCA was to secure emergency safeguards, the reality is that wholly Australian-made products have

a tendency to attract a higher price tag than their imported counterparts. So how do you communicate to consumers the importance of choosing a locally-made product over an imported one?

Peak industry body for the South Australian food industry, Food SA, has launched a number of successful campaigns including ‘Eat Local’ which saw a selection of restaurants and cafes showcase the state’s high quality produce by either including a dish that was made from local ingredients, or selling local produce in-store.

Another was the Shop & Swap initiative launched by Robern Menz – South Australia’s largest confectioner, and endorsed by Food SA. The Shop & Swap campaign was launched on the back of unprecedented public support for South Australian pickle and sauce manufacturer, Spring Gully, which was on the verge of receivership until a sudden wave of both retail and consumer support saw sales soar.

Spring Gully experienced three weeks’ worth of sales within a three day period shortly after Shop & Swap was launched, resulting in Foodland, IGA and Coles supermarkets placing extra orders to keep up with demand.

The Shop & Swap campaign encourages consumers to simply swap one item for a locally-made product every time they shop. The campaign is intended to help shoppers recognise locally-owned brands so that they can make informed purchasing decisions that support and strengthen local businesses.

Catherine Barnett, CEO of Food SA, said that the initiative serves as a powerful vehicle that has the capacity to influence the shopping habits of many South Australians.

“It is critical that people understand what they are buying. We would like consumers to think about buying and consuming South Australian-made and owned high quality products. There are many ways consumers can make this change,” she said.

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As we have seen with the revival of Spring Gully, consumer support can do a great deal to sustain local industry. But what the industry really needs to foster and secure a sustainable and profitable future is sufficient government support and investment, especially if the nation is to become Asia’s food bowl, as some reports have suggested.

A recent industry roundtable involving executives from NAB, Nestle and SMS Management reinforced this sentiment.

The executives were asked to identify sectors of the Australian economy with the best potential for future economic growth and the consensus was clear: the nation needs to capitalise on its reputation for clean and green food production, otherwise known as “Brand Australia.”

The executives contended that Australia needs to focus on producing and exporting high quality finished products to best capitalise on Asia’s growing middle class, rather than sending over raw materials such as wheat and milk.

“There’s almost no new investment in food production, in food manufacture and, in fact, if you look at what’s happen-

1

ing in the Goulburn Valley, fruit is rotting on the ground because of closures of factories,” Elizabeth Proust, chair of Nestle Australia, said at the roundtable.

“I’d be very cautious about seeing us as an exporter of raw materials, so to speak, rather than somebody who can be really smart and clever, and find ways of really making export dollars by exporting the final or the almost final product.”

Proust’s view is echoed by many other key players in the industry. The notion of focusing on quality over quantity and then exporting that final product is exactly what a number of boutique food producers and winemakers are currently doing.

A prime example is the Barossa Valley Trustmark which was launched by SA Food Minister Gail Gago in September. The trust mark was created by Paul Henry of Winehero and is designed to encompass the region’s commitment to consistent, high quality products and provide a platform to firmly establish the Barossa brand on the world stage.

The reality is that Australia is blessed with a beautiful clean and green environment, and from that, we produce some of the best food and wine in the world. All we need to do, is invest in it.

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COVER STORY

Boosting

Sydney’s packaging

Despite a number of key food brands being based in Melbourne, Multipack’s new accredited food facility in Moorebank is putting Sydney in the spotlight.

Danielle Bowling reports.

Multipack's new dedicated food facility All images: Multipack 10 Foodmagazine | Nov/Dec 2013 | www.foodmag.com.au

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COVER STORY

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pened in late August, the 1,200 sqm space allows Multipack to not only give Melbourne, the traditional home of food contract packaging, a run for its money, but also to extend its offering into primary and secondary packaging for FMCG food brands.

The fully commissioned, fully functioning food facility comprises a washroom and three clean rooms, each independently air-conditioned with positive air pressure to ensure contaminants are kept out. The three separate areas mean Multipack can also run different food products with different packaging requirements at the same time.

Brad Devine, sales and marketing manager, told Food magazine, “This new facility represents the future for our business. It’s the culmination of several years of investigation and testing of our strategy in the FMCG food area.”

It means Multipack, which has a twodecade history in packaging non-food products, is now accredited for secondary and primary food packaging, and has strong plans to expand into liquid filling and wet fill products as well.

Multipack’s key clients in the food space include multinational brand owners such as Unilever, Wrigley (the Mars Group) and Lion Dairy & Drinks.

Devine said the new facility will inject life into Sydney’s food contract packaging industry, which recently has been overshadowed by Melbourne.

“It’s been a long time since we’ve seen any significant investment in food contract packaging in the Sydney market,” Devine says.

“This facility now gives FMCG brand

owners the opportunity to package their products in Sydney without having to do it in Melbourne, which is what they have been forced to do for a long time.”

It’s also a good news story for Australia’s manufacturing industry in general, Devine says, which as we all know has been short on optimism in recent times. He hopes Multipack will now be able to capitalise on Australia’s food-producing potential, while also helping its clients to do so.

“We’ve been in business for more than two decades and we’ve seen in that time vast amounts of business go offshore, particularly to China. We recognise that Australia is still a large food producer, and we understand that food which is grown and processed in Australia is very, very likely to be packaged in Australia, and very unlikely to be lost offshore to China.

“That’s not to say that Australia isn’t under pressure from imports, it certainly is. But Australia produces some of the best food in the world and it gets processed and packaged right here, so we figure that one of the least at-risk categories for us to invest in would be Australian grown and processed foods,” he said.

Promoting Australia’s top quality food products and partnering with leading FMCG food manufacturers is a top priority for Multipack moving forward, Devine added.

“We’re in it for the long haul. We wouldn’t have gone and invested like we have if we thought it [food manufacturing] was a fleeting opportunity. We’ve seen a long term trend and we want to provide a long term, viable, low cost solution to FMCG food companies.”

The evolution of Multipack ¥ 1992: Multipack founded, providing manual packaging services for the cosmetics industry ¥ 1996: Expanded into direct mail, specifically for the publishing industry ¥ 1999: Added "Multibind", providing finishing services to the printing industry ¥ 2004: Expanded into the FMCG industry with the provision of contract packaging services ¥ 2009: Pilot clean room built for the packaging of food products for FMCG food companies ¥ 2009: (March) Achieved SQF

Level 3 and HACCP Secondary Packaging accreditation ¥ 2012: (November) Acquired Creative Pack, signalling a strategic push into FMCG co-packing ¥ 2013: (August) Commissioned food facility - 3 clean rooms, purpose-built, dedicated, accredited ¥ 2013: (September) Commissioned first modular vertical filling system for dry food product ¥ 2013: (October) achieved SQF Level 3 and HACCP Primary Packaging accreditation

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Let’s

celebrate

It’s that time of the year again, when we launch the industry’s most respected and highly anticipated awards program. That’s right, the 2014 Food Magazine Awards program is officially underway, writes Danielle Bowling.

T

here are two things you’ll be celebrating if you take part in the 2014 Food Magazine Awards. Firstly, it’ll be the event’s 10th anniversary (an obvious cause for popping some champagne), and secondly, you, along with your industry peers, will be recognised and hopefully rewarded for all the hard work that goes into launching a new product.

The annual Food Magazine Awards puts the spotlight on new and innovative food and beverage products, while also praising some of the best sustainable, packaging and safety initiatives that have been launched in the industry over the past year or so.

With a total of 14 categories, includ-

ing Beverages, Dairy, Confectionery, Ingredient Innovation and Packaging Design, there’s something for everyone!

The application process is easy: a nomination kit can be downloaded from www.foodmag.com.au/awards2014 and once completed, needs to be sent to the

Food and Sustainable Manufacturing categories – so that our panel of esteemed judges can get an idea of the ‘look and feel’ of the brand, the product’s packaging and its overall appeal.

I’d like to thank the very loyal sponsors, profiled on page 14, who have once

few categories available for sponsorship, so if you’d like to get involved, please don’t hesitate to contact us.

And of course, get nominating!

Whether you’re part of a multi-national food manufacturing giant or you’re a small, hands-on operator trying to spread the

"You, along with your industry peers, will be recognised and hopefully rewarded for all the hard work that goes into launching a new product."

Food mag team with a high resolution image and a sample of the product.

While taste is not part of the judging panel’s criteria, this year, unlike other years, we’re asking nominees to send in their products – excluding those entering the Food Safety and Innovation in Non-

12 Foodmagazine | Nov/Dec 2013 | www.foodmag.com.au

again pledged their support to the Food Magazine Awards, including our Platinum Sponsor, Heat and Control. These brands have gotten in early to secure their spot in the program, and will help celebrate thought-leadership at our gala awards night in August. There are still a

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14 Foodmagazine | Nov/Dec 2013 | www.foodmag.com.au

Heat and Control is a manufacturer of industrial food processing and packing systems and for 60 years has developed industry leading technology that has enhanced the quality and taste of food products as well as significantly improved efficiency and sustainability.

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SNACK FOODS

Creating

#social ¢urrency Experiential marketing techniques are a highly valuable media platform for launching new food brands, Aoife Boothroyd reports.

Image: Magnum 16 Foodmagazine | Nov/Dec 2013 | www.foodmag.com.au

C

onsumers are bombarded with marketing messages 24/7, so for today’s food brands and manufacturers, the creation of successful advertising campaigns has become very challenging.

Consumers are more immune to traditional forms of advertising than ever before, and with the rise of all things digital, they now have the ability to publicise their views on your marketing message.

Love it or hate it, this is where social media - the ultimate word of mouth marketing medium - can make or break you.

In today’s digital age, the importance of advertising through social media cannot be denied. Data is collected from users via their listed interests, enabling marketers to more easily access their target audience. And consumers willingly, and regularly, expose themselves to the varying marketing messages, whether it be via Facebook, Twitter, Instagram or whatever else tickles their fancy.

However, targeted advertising through social media with ‘suggested posts’ can be completely transparent - not to mention downright annoying – and risks becoming what marketers refer to as ‘noise’; confusion caused by too many marketing messages delivered at the same time.

So how do marketers cut through the noise and launch campaigns that make lasting impressions, encourage word of mouth and are more likely to convert messages into dollars? One way it through effective experiential marketing combined with social media activity.

Now not everyone out there will be familiar with the term ‘experiential marketing’. Experiential marketing is the combination of experiencing and experimenting – essentially the creation of a campaign that encourages consumers to become active participants in a marketing effort.

Experiential marketing may include ‘touch and feel’ techniques such as unique product sampling efforts, or impromptu events that attract attention in high traffic areas, such as the use of a celebrity to endorse a product. The more creatively marketers think outside the box, the more likely they are to encourage consumer participation through organic social media posts – the only thing is, the campaign has to be good enough for people to want to talk (and tweet) about it. »

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SNACK FOODS

The Special K Post Office exchanged a treat for a tweet.

Image: Kellogg's

Who's doing what?

A key part of launching a new food or beverage product is, of course, getting people to try it. In-store demonstrations can be effective if done properly, but can often be quite disengaging and stale - they tend to attract no one other than ‘seagulls’ that feast on the free delights but have no intention of committing to a purchase.

Some recent notable campaigns have come from key players in the industry: Kellogg’s Special K, Unilever’s Magnum, and new entrants to the Aussie scene: Wonderful Pistachios and Thankyou.

Kellogg’s launched Australia’s first ‘social currency shop’ – The Special K Post Office in mid-August this year.

Open over four days in Westfield Sydney, the Post Office offered consumers the opportunity to try the brand’s debut into the salty snacks category – Special K Cracker Crisps – in exchange for a post on social media.

The Post Office featured traditional red post office boxes, fake grass, a barbeque, a bed of fresh chives and

an outdoor seating arrangement – an environment which complemented the Cracker Crisp flavours: Honey Barbeque and Sour Cream & Chives, as well as tapping into Australian consumers’ love for an outdoor lifestyle.

“The Special K Post Office was Australia’s first shop where shoppers didn’t pay, they posted – it’s where they came in and took away a crunchy, new savoury snack simply by posting a picture, comment or by checking-in on social media,” said Nik Scotcher, market manager, snacks, at Kellogg’s.

Scotcher said that the brand was

just under a quarter of a million in Australia alone,” he said. “From a reach point of view, we are very pleased with that.”

Consumers like being in control If the ever-rising popularity of convenience foods has led marketers to assume that consumers simply want food manufacturers to do the thinking for them, they should think again.

The pop-up Magnum Pleasure Store gave consumers the opportunity to make their own ice cream by selecting the type of chocolate coating they wanted, along with a wide selection of toppings. The

rampant Instagram posts.

The Pleasure Store created a buzz in Westfield Sydney for six weeks straight.

The wait in line was rarely shorter than an hour long, and with ice creams retailing at $7 a pop - double the recommended retail price – you can safely say this promotion was a success.

“The Magnum Pleasure Store has proven to be a greatly successful concept, which is adaptable to different markets and opportunities around the globe,” said Cassandra Drougas assistant brand manager, Magnum.

“Ultimately, the key to the success of the

"People were telling the staff that the reason they came to the store was because they saw their friends posting images online, the store is self-generating its own PR." extremely pleased with the customers’ response to the campaign.

“We were hoping to exceed 200,000 in terms of social reach, that was kind of the benchmark that we set ourselves based on the UK and Canadian success,” he said.

“We’ve been able to exceed expectations as far as social reach … We have reached

concept engaged consumers by appealing to their individual tastes and creativity, while employing social media as the main vehicle for promotion.

Having successfully been launched in Paris, London, New York, Toronto, Milan and Shanghai, Sydneysiders embraced the concept with salivating taste buds and

P Find

18 Foodmagazine | Nov/Dec 2013 | www.foodmag.com.au

Evaluate

Select

launch is that people love the unique opportunity to customise a product they love.”

In addition to a unique concept, organic social posts were a leading contributor to the store’s popularity and on-going success throughout the activation period.

“Australia has the second largest uptake of smart phones and Facebook

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SNACK FOODS

The line at the Magnum Pleasure store rarely was less than an hour long.

Images: Magnum

in the world, so organically, people were photographing their customised Magnums and sharing the photos online through social media. For those without smart phones, we had tablets set-up in-store with hashtag signage to facilitate any customer wishing to share their creation,” said Drougas.

“People were telling the staff that the reason they came to the store was because they saw their friends posting images online; the store is self-generating its own PR, which is a testament to the fact that customising your own Magnum is simply a winning concept.”

What about new market entrants?

Californian-based nut company, Wonderful Pistachios, burst into the Aussie market in early 2012. Having developed a solid reputation in the US and abroad, Wonderful secured a distribution deal with Australia’s leading grocery giants, Coles and Woolworths, and launched the brand’s popular ‘Get Crackin’ campaign.

The campaign featured television

commercials with well known cartoon characters such as The Simpsons family, Peanuts and Angry Birds as well as a host of experiential sampling techniques including one outside Sydney’s Town Hall which featured an impersonator of the Korean pop star, Psy. Wonderful’s loud approach to marketing attracts attention. Whether it’s from passers-by in high traffic pedestrian areas due to innovative gorilla marketing techniques, or through well devised above the line campaigns - their approach is extremely effective as it gains organic traction through social media and has a tendency to go viral.

The brand employed Psy of Gangnam Style fame (the real one this time) to star in the brand’s first-ever Super Bowl spot which was announced via a flash mob in New Orleans.

“The Super Bowl is the most widely watched sporting event of the year, ‘Gangnam Style’ is the most watched YouTube video, and Wonderful Pistachios is the top-selling snack nut item on the market,” said Marc Seguin, Para-

mount Farms vice president of marketing. “It’s a powerhouse combination.”

Taking a slightly different approach was Thankyou, the social enterprise behind Thankyou Water. The brand engaged in a host of experiential activities via a multi-layered marketing campaign with the aim of attracting attention from the supermarket giants, Coles and Woolworths.

The campaign gained a huge amount of exposure via social media and included flying two helicopters over Coles’ Melbourne headquarters in Hawthorn, and Woolworths’ Sydney headquarters in Bella Vista. Each helicopter carried a 10,000 square foot banner with messages asking the retailers to “change the world” by stocking their products.

The two week campaign included a mix of traditional advertising, celebrity endorsements and of course an extensive social media presence which included creative videos and thousands of posts by Thankyou fans on both Coles and Woolworths’ Facebook pages. The campaign

is estimated to have reached over 13 million people.

“It’s been amazing to see thousands of Australians post on both Coles and Woolworths’ Facebook pages in support of the Thankyou range. We’ve been blown away by the level of support,” said Daniel Flynn, co-founder and managing director of Thankyou. “We set a goal to reach 10,000 views of the campaign video by the end of the campaign and we hit that number within the first day.”

While money helps, of course, and is often a key driver, a brand doesn’t necessarily need a hefty advertising budget to run a successful marketing campaign.

Social networking tools are among the most powerful media vehicles, with the potential to connect brands with countless consumers from around the globe.

All you need is a good concept and a bit of creativity.

The easiest way to find products and suppliers

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www.foodmag.com.au | Nov/Dec 2013 | Foodmagazine 19

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Image: Thinkstock

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PACKAGING

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packaging

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20 Foodmagazine | Nov/Dec 2013 | www.foodmag.com.au

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A recent trip to Nigeria showed the AIPâ&#x20AC;&#x2122;s Pierre Pienaar that thereâ&#x20AC;&#x2122;s so much Australia can teach the developing world when it comes to effective packaging.

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L

agos, Nigeria. The destination conjures up a variety of imaginations.

I grew up in South Africa but nothing could have prepared me for the highly populated, super-resourced, bustling West African nation. A quarter of Africa’s population lives in Nigeria. It is the seventh most populous country (an estimated 200 million people) in the world with 42 percent of its population zero to 14 years of age.

It is the world’s eighth largest exporter of petroleum. It is a country of huge extremes and I feel privileged to have been asked to participate recently in a five day residential training program (RTP) focusing on Packaging Technology education.

The World Packaging Organisation (WPO) approached the AIP to deliver this week-long training program. Thirty-four students from Nigeria, Ghana, Côte d’Ivoire, Kenya and South Africa attended; all with a strong desire to learn more in the field of the

is lost through poor/ineffective/insufficient packaging. All participants keenly absorbed information and their eagerness to improve their knowledge in this field was most evident in their final project presentation on the fifth day.

This West African RTP initiative will be the first of more to come. Already the African Packaging Organisation (APO) is planning similar programs in 2014 in Accra and another in Lagos; the latter focusing on pharmaceutical packaging. Although this recent RTP covered the entire spectrum of packaging technology, what drove the students and which was evident in their questions, was how one can improve packaging and reduce costs. They wanted to know what their packaging counterparts were doing in developed countries and how they can improve, particularly to reduce wastage.

In this region much fresh produce is sold on the ‘open markets’, where better

"They wanted to know what their packaging counterparts were doing in developed countries & how they can improve" science and technology of packaging. The knowledge of material selection, coupled majority of the attendees were graduates with more effective storage, would greatly including some with Masters qualifications reduce the loss of fresh fruit and vegetables. and two with PhDs. But packaging technolSubsistence farming is the order of the day ogy is what they were hungry to learn about. in Nigeria, where the farmer brings a few No Asmall oneMconsiders D _wonder F O Owhen DSY M A Y _that 0 9 . p baskets d f of P produce a g e to2the market 2 4 / and 4 /trans0 9 , more than 50 percent of Africa’s food supply fers the contents to another basket belonging

Attendees eager to learn about packaging technology.

to the open market vendor. Fresh produce is exposed to the elements during display and sales, resulting in a very limited shelf life.

There is significant evidence of informal packaging happening throughout Africa, where vendors buy in bulk and repack into small pack sizes for ‘open market’ sales which better suits the consumer due to low income and poor storage facilities. Affordability also drives daily supply of household hygiene items such as toothpaste, where 15ml sachets are by far the biggest seller.

It’s in this area of small dose packaging that most support and advice is required.

9 :This 2 3recentARTP M has been a good start.

Ongoing education is required at all levels

of the packaging spectrum. The AIP, in collaboration with WPO, has the knowledge, resources, first world experience and the ability to share information and expertise.

The APO and WPO are to be commended for taking the initiative to begin addressing this most serious need in Africa.

The road ahead is long and wide but the journey has commenced. The destination is not necessarily in sight but the rewards along the way for all involved will be big and long-lasting.

Pierre Pienaar is an education coordinator at the Australian Institute of Packaging (AIP).

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paul webster » regional sales manager » tna australia pty ltd » p: +61 2 9714 2300 » m: +61 (0) 451 631 293 » f: +61 2 9748 2970 » info@tnasolutions.com Stay in touch with tna Follow us @tnasolutions

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