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July 2018 • Vol. 11 No. 7
behindthebusiness (see page 22)
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editorialcomment WHAT’S FOR DINNER? Sarah Mitchell Editorial Director
sarah@reviewmags.com
It’s quickly turning into a food fight like no other with the lines being blurred between c-stores, restaurants, meal kits and supermarkets competing for consumer dollars. Despite incredible growth of online digital sales, in the US alone it only amounts to around nine percent of US retail sales, meaning that an overwhelming majority of consumers are still purchasing in-store. Retailers are investing significantly in the in-store experience. American retailer Trader Joe’s was named the top retailer providing a highquality customer experience. Costco Wholesale and Neiman Marcus placed second and third on the multichannel list. While brands understand that they need to develop and extend their customer experience offering to gain loyalty, many continue to miss the mark. This year saw the launch of Wahlburgers entrees and drinks inside Hy-Vee’s own in-store restaurant. The American grocery chain has 25 more openings planned for the next three years. Since the inclusion, the retailer has become the largest franchisee of Wahlburgers, the popular restaurant chain owned by the Wahlberg brothers, further blurring the line between food retail and restaurants. The age-old question of ‘what’s for dinner’ has the ability to be answered
by supermarkets should the look to implement foodservice offerings. According to a recent study, two-thirds of people don’t know what is for dinner by 4pm. It also found that those that don’t have set dinner plans, the less they spend per person in-store. Standard feature days, a weekly meal plan, chef’s specials and online planning or shopping tools could help connect consumers to grocer foodservice offerings. Although it can drive awareness or meal planning, retail foodservice price promotions are not very effective in generating sales. Research has shown that shoppers are most likely learning about retail foodservice offerings in-store, however, with families eating less than five homecooked meals a week, they may not be spending that much time in-store. Retailers may find more success by promoting their foodservice offering on social media platforms. This doesn’t just mean specials or discounts, but meal ideas, suggested recipes or even beverage pairings. The rise of in-store dining spaces overseas is evident and grocers must start to think of themselves as competition for restaurants in order to gain their share of consumers who eat food away from home.
ATTENTION GROCERY SUPPLIERS The Food and Grocery Council is an industry association for grocery suppliers providing members networking, events, industry information and strong advocacy. Contact us for information on the benefits of membership: Katherine.rich@fgc.org.nz • Networking • Industry Updates • Conference and Events • Education and Training • Advocacy and Law Reform
Enjoy the issue.
www.fgc.org.nz
diarynotes
September 1: Grocery Charity Ball September 6-9: Food and Drinks Asia, Philippines October 7-10: NACS Show 2018 Las Vegas, NV; Expo October 8-10
October 11-13 2018: Japan’s Food Export Fair, Makuhari Messe, Japan October 21-25 2018: SIAL Paris, France November 7-9: FGC Conference, Brisbane January 2019: ISM, Cologne
departments
02 News 14 Store of the Month 16 What’s New 18 New Zealand feature 22 Behind the Business
5 11 20 29 SupermarketNews is published under license. Please direct all enquiries and correspondence to SupermarketNews. The opinions and material published in this edition of SupermarketNews are not necessarily those of the publishers unless specifically stated. All material in this publication is copyright and may only be reproduced with the consent of the publisher. Copyright 2018
CHAIRMAN Peter Mitchell, peter@reviewmags.com PUBLISHER Tania Walters, tania@reviewmags.com GENERAL MANAGER Kieran Mitchell, kieran@reviewmags.com EDITORIAL DIRECTOR Sarah Mitchell, sarah@reviewmags.com
EDITORIAL STAFF Mark Fullerton, mark@reviewmags.com Caitlan Mitchell, caitlan@reviewmags.com ADVERTISING SALES Felicity-Anne Flack, felicity@reviewmags.com ONLINE SALES Georgina McKimm, georgina@reviewmags.com
SENIOR DESIGNER Raymund Sarmiento, raymund@reviewmags.com GRAPHIC DESIGNER Ciaran Carroll, kez@reviewmags.com ISSN No.
1173-3365
Suite 9, Level 3, 20 Augustus Tce, Parnell, Auckland PO Box 37140 Parnell, Auckland Tel (09) 3040142 Fax (09) 3772794
The NEW ZEALAND BEVERAGE COUNCIL is an industry association whose members cover all aspects of the non-alcoholic beverage market both in New Zealand and the export markets. The Council members are spread throughout New Zealand and come together annually for an industry conference that covers industry issues and is addressed by international speakers. The organisation monitors product quality and sets standards for the industry and runs national competitions and awards.
THE NEW ZEALAND BEVERAGE COUNCIL (NZBC) P.O. Box 47, AUCKLAND 1140, New Zealand. Email: info@nzbc.nz Phone: +64 9 309 6100 DDI: +64 9 302 9932
July 2018
I 1
news PREVENTING BAG RAGE Some of Australia’s biggest supermarkets are finding themselves faced with angry and frustrated shoppers following the removal of single-use plastic bags. Dubbed ‘bag rage’, it has seen customers threaten staff with supermarkets now having to have extra security around checkouts. As of July, major retailers in all but two Australian states will be fined if they are found to be supplying single-use plastic bags. “They just want a little extra help from us to get through the transition,” said Claire Peters, Woolworths managing director. Following the removal of the bags, Coles has opened up every checkout lane in a bid to help reduce waiting times while staff explain changes to shoppers. “While we understand that some customers may be frustrated by this change there is absolutely no excuse for abusive or violent behaviour towards retail staff,” said Gerrard Dwyer, national secretary of Shop, Distributive and Allied Employees’ Association. Shoppers in NZ haven’t been so anti-change and Foodstuffs believes that there won’t be the same degree of customer frustration seen in Australia
for a few key reasons. “We asked our customers what they wanted to do, and we’ve responded to that,” said Antoinette Laird, Foodstuffs NZ. “In fact, we’ve gone further and we’ll be out of single-use plastic bags in all of our stores by the end of this year. We’re trialling alternatives for people caught short without their reusable bags in selected stores, which has been met with great enthusiasm from our customers.” Pak’nSave has always charged for plastic bags so customers are already nearly there and used to using their own bags, boxes and car boots to save money – and the planet. “We’ve long offered rebates for reusables in all our New World North Island stores – funded by our owners. We offer a whole range of good value reusable bags and we’re happy to accept any bag or box at the checkout which is clean and serviceable. Many of our stores have relationships with grassroots community initiatives like Boomerang Bags.” Following Foodstuffs’ conversation starter, many other retailers have now jumped on board not just in the grocery sector. Foodstuffs believes that most New Zealanders are ready for the change, and they are doing everything they can to get everyone sorted. n
ON A MISSION!
Raglan Coconut Yoghurt have been on a mission this year to clean-up NZ’s beaches, encouraging customers to do a clean-up and be sent free yoghurt. Over 42,000 pieces have been collected by individuals and community groups so far. When co-founders Seb Walter and Tesh Randall came across the ocean clean-up work non-profit Sea Cleaners have being doing for the past 16 years, they were incredibly impressed and wanted to get behind their efforts. “Meeting Captain Hayden Smith and hearing about how they have collected over 170 shipping containers worth of rubbish floating around in our
oceans was equal parts inspiring and heart-breaking,” said Randall. “what they have achieved with their small fleet of boats and volunteers deserves a huge thank you from the whole country!” Raglan Coconut Yoghurt has pledged 50 cents to Sea Cleaners from each jar of their best-selling flavour, Natural Greek-Style 700ml, sold over the month of July. They are hoping to raise over $4,000 for the work Sea Cleaners are doing. “We are so stoked to have this support,” said Hayden Smith from Sea Cleaners. “Without donations we would be unable to do what we’re doing so we’re really grateful.” n
POTATO SHORTAGE… NO PROBLEM • • • • •
Cooked with healthy oils (Hi Oleaic oil) No artificial flavours or colors Gluten Free and Non GMO No added MSG Tumeric is becoming a healthy talking point with several brands
SNACK WORLD IS EXCITED TO INTRODUCE UNIQUE PRODUCTS FOR A NEW MARKET Contact your DKSH New Zealand Limited representative for more information.
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BOWL NOODLES ARE THE LATEST TREND IN CONVENIENT SNACKING AND MEALS According to Uber Eats* Bowls are the hottest food trend in New Zealand this year. More people are becoming time poor, increasing the demand for convenient yet nutritious meal options. Bowls filled with ramen, poke or salad seem to be popular among New Zealand consumers. Suimin Origins recently launched in New Zealand supermarkets, positioned to take advantage of this major food trend. The Suimin range consists of cups, bowls and simmer noodles that focuses on authentic Asian style flavours for quick tasting meals or snacks. Suimin has a strong market position in the bowl category with 27 percent** market share. While the bowl category is smaller in comparison to cups and simmer noodles, this segment has shown exceptional growth with 42 percent growth on FIN YTD**. Growing food trends surrounding bowls are one of the main reasons for this growth.
possibility is endless with Suimin Origins, as consumers are able to add freshly cooked meats or vegetables to enhance the eating experience. Cup and bowl noodles have long been seen as the staple of the budget conscious student or hungry teenager coming home from school or sports practice. However, Suimin Origins is targeted towards millennials. At varying life stages, millennials may have eaten cup noodles as teenagers and students but as their tastes have evolved and their incomes have increased they have sought out new tastes and flavours. In an age of insta-food, the photo is almost more important than the food itself. Suimin Origins appeals to this type of consumer. Each bowl is made with real ingredients, is easy to prepare and tastes as authentic as local Thai restaurant meals. Millennials are well travelled and are adventurous with their food choices. The objective of Suimin Origins marketing strategy through social media has been to appeal to the wanderlust traveller and evoke past travel memories. By evoking past memories, it entices those who have travelled to Asia to relive the authentic experience in their homes or at their desk. By creating a sub-brand of Suimin, this range is elevated above the regular Suimin cup and bowl noodles. Suimin Origins allows the exploration of the authenticity of flavours. The bright bold packaging with the cardboard wrap elevates the flavours and ingredients used. The bowl is reflective of a typical noodle bowl with an abstract noodle pattern to create the feel of a traditional styled Asian dish. The simple design appeals to the consumer looking for a more premium but convenient meal option. Suimin is positioning itself as a premium authentic tasting noodle meal or snack and the packaging helps reinforce this position. n
Suimin Origins takes the authentic taste of Asia to the next level. Suimin Origins are not a traditional bowl but are a full meal solution with the authentic flavours of Asia provided by up to five individual sachets per bowl. Suimin has positioned its brand as the authentic taste of the orient, providing a wide range of tastes inspired by the traditional flavours of Asia. Suimin Origins takes the authentic taste of Asia to the next level. Suimin Origins are not a traditional bowl but are a full meal solution with the authentic flavours of Asia provided by up to five individual sachets per bowl. The sachets contain traditional Thai pastes, coconut powder to form the basis of the sauce, real herbs and spices, peanuts and chilli oil. The sachets vary by flavour and each bowl can be customised to suit the individual taste of the consumer. Suimin Origins come in three flavours: Thai Green Curry, Beef Massaman and Seafood Laksa. Each flavour is authentic and reflects the traditional Asian street food experience. The food imagery on the packaging reflects the real ingredients and noodles contained in each bowl, when prepared according to the instructions. The
These products are available to order. Please contact your Suimin representative on (09) 9801558.
References: * https://www.uber.com/en-NZ/ newsroom/bowls-named-trendiestfood-2018-new-zealand/ ** Nielsen Consumable Dozens Fin YTD 01/04/2018 July 2018
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news
GOVERNMENT FOUND NEGLIGENT
Following the pseudomonas syringae pv actinidae (PSA) virus that devastated the New Zealand kiwifruit industry in 2010, New Zealand’s High Court has ruled that the Ministry of Primary Industries (MPI) was negligent in allowing the disease into the country in 2009. Led by the Kiwifruit Claim, the class action represented 212 members of New Zealand’s kiwifruit sector. John Cameron, chairman of Kiwifruit Claim believes this is extremely significant for not just the kiwifruit sector but other primary industries with the court establishing that the governmentrun MPI owed a duty of care to kiwifruit growers when carrying out its biosecurity functions. “We hope that this significant decision draws a line in the sand for what has been a long and difficult eight years for growers,” said Cameron. “The kiwifruit industry alone is worth around NZ$1.67 billion a year to the NZ economy, and MPI is the only agency in the country with the mandate to manage biosecurity risks.” Cameron hopes that the Government will accept the judge’s decision and allow members to be compensated for their losses. n
CONFECTIONERY ACQUISITION Iconic NZ confectionery brand RJ’s, has entered into a conditional agreement with Nestlé NZ to acquire a stable of NZ brands including Black Knight, Fabulicious, Heards, Mackintosh, and Oddfellows. As part of the planned acquisition, the Lifesavers brand will be purchased
by sister company Darrel Lee in Australia. The deal will strengthen RJ’s position as one of the largest confectionery manufacturers in NZ with operations based in Levin. The RJ’s management team plan to work closely with Nestlé on a manufacturing transition plan that
will see products transferred by the end of 2018. “We are really excited about this acquisition,” said Tim York, CEO of RJ’s. “It gives RJ’s greater strength within the category and broadens our offer beyond the liquorice segment. RJ’s has a place in the hearts of all Kiwis and over the last five years, we have seen the business double in size due to strong domestic and export growth in the USA, Canada and the UK. We are passionate about New Zealand manufacturing and this conditional acquisition will increase our manufacturing presence in NZ.” n
YOPLAIT TO BE ACQUIRED
The Commerce Commission has announced that it has received a clearance application from Goodman Fielder New Zealand to acquire assets related to the manufacture and distribution of ‘Yoplait’ branded yoghurt in NZ from Lion Dairy & Drinks. Lion currently has a licence from Sodima (a French company) to use the Yoplait brand in New Zealand. As well as acquiring manufacturing and distribution assets from Lion, Goodman Fielder intends to obtain a licence from Sodima such that it would be the exclusive supplier of Yoplait Yoghurt in New Zealand. n
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TACKLING CLIMATE CHANGE Countdown has joined a group of leading New Zealand businesses who have joined forces to tackle climate change. Kiri Hannifin, Countdown’s general manager corporate affairs said that Countdown is proud to be part of such a concerted commitment by the New Zealand business community to do more on this issue. The businesses, from a range of industries, make up nearly 50 percent of New Zealand’s emissions. “While action on climate change is something everyone has a role in, seeing a number of businesses come together for a common purpose is really heartening due to the scale of impact we can have,” said Hannifin. “Our collective goal is to help NZ transition to a low emissions economy and, in doing so, create a positive future for Kiwis, business, and the economy.” Last year, Countdown set out 20 Corporate Social Responsibility commitments out to 2020, two of which relate directly to climate change. The company has a goal to reduce carbon emissions to 10 per cent below 2015 levels, and to innovate with natural refrigerants and reduce refrigerant leakage in stores by 15 per cent of CO2 equivalent below 2015 levels. n
NEW NZ MANAGER FOR SAN REMO
SHARE A GRIN
Grin Natural has launched a nationwide campaign with the goal of providing 50,000 Kiwi kids in need with biodegradable toothbrushes. The campaign titled ‘Share a Grin’, invites customers to purchase any Grin Natural product and for every product purchased, Grin will donate an eco-friendly toothbrush to a Kiwi kid who needs it the most. Donated toothbrushes will be distributed via local charities and organisations selected by New World, school events and through Eat My Lunch. ‘Share a Grin’ invites New Zealanders to play their part in creating positive change and helping build awareness around the child tooth decay issue that has now reached a crisis point in New Zealand. n
After four years at the helm of San Remo NZ Kerry Wharerau has decided to step down and Brennen de Bruin has been appointed as New Zealand Manager. De Bruin joins San Remo as a globally experienced manager that has gained exposure in New Zealand having previously worked for Spotless, Foodfirst and recently the GM of Sales for Sun Valley Foods. Moving forwards De Bruin is excited about continuing San Remo’s top performance in the Pasta, Noodle and Biscuit category with brands such as Fantastic, Suimin, Balducci, Zafferelli and San Remo. De Bruin has expressed that he is fortunate to BRENNEN DE BRUIN take over a role where his predecessor Kerry Wharerau has laid a strong and stable base. “This elevates our challenge to continuously improve the capability of our people and progress our current growth. I am fortunate to be involved with a brand that looks after its people and has a thorough understanding of the demographics of their target market.” n
MANUFACTURING POWERHOUSE
Walter & Wild, a newly formed NZ company has announced three separate deals, bringing together a suite of iconic New Zealand brands under the one umbrella. “The bringing together of Hubbards, Hansells and Gregg’s Sauces under Walter & Wild
combines some of New Zealand’s best-known food brands into a food manufacturing powerhouse,” said Harry Hart, owner of Walter & Wild. “The breadth of expertise, manufacturing capability combined with an understanding of markets, both here and offshore will drive further growth and innovation. We now have a significant brand portfolio reaching consumers from breakfast to dessert.” Leading brands in the portfolio include Alfa One, Aunt Betty’s, Hansells, Vitafresh, Vitasport, Coconut Collaborative, Hubbards mueslis and cereals, and Gregg’s table sauces. n
Contact your DKSH New Zealand Limited representative for more information
July 2018
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internationalaisle TARIFFS HURTING US F&B
Following the new hefty tariffs from the EU and Canada for US products, food and beverage companies are facing an uphill battle. The tariff has been imposed on everything from whiskey to ketchup. Mexico has also announced it will also increase its tariffs on cheese and pork products. With tight profit margins already a juggling act, the tariffs put additional pressure on suppliers to ensure that fuel, transportation and wages are all balanced, not to mention the price-sensitive customers.
TOO HOT TO STOCK
With recent high temperatures in Britain, lettuce is now the latest product set to briefly disappear from supermarket shelves. A warning has been released from the British Leafy Salad Growers Association that the weather has impacted on the suppliers’ ability to grow lettuce alongside a lack of rain. This is just one of the many products that has disappeared from shelves, other crops affected include celery, onions, carrots, broccoli and cauliflower. Lettuce is now being flown in from the US, and imported from Spain and Poland. n
“The problem right now is while we’re seeing inflationary impact in the goods, in currency changes and because of tariffs, there’s not much inflationary pass-through that you can do in pricing,” former Heinz CEO Bill Johnson told CNBC. One brand hit hard by Canada’s levy on soups is Campbell Soup. “With a ten percent tariff on soups and broths and tomato products- representing the core of Campbell’s products that are sold in Canada and made from both US and Canadian ingredients – Campbell estimates the economic impact to its Canadian business to be significant,” said company spokesperson Alexandra Sockett. n
VEGANISM ON THE RISE
Australian retail supermarket chain Coles has released a new range of own-brand vegan frozen ready-meals to its stores following an increase in consumer demand for plantbased foods. The range includes glutenfree Vegetable Chilli, Penang Curry and Vegetable Gyozas. Woolworths also launched a range of vegan products this year and looks to develop the range further. “We’ve seen a strong increase in demand for vegan products in the past year and we’re working to create even more choice and variety for our customers,” said a Coles representative.
FARM TO TABLE In a bid to create the shortest supply chain, Delhaize, a Belgian supermarket part of Ahold Delhaize has started to sell produce grown on its own roof. The Urban Farm project was launched to serve a growing number of shoppers who were concerned about where their food was being sourced from and eating healthy. “The products are harvested in the morning and an hour later they are in-store,” said a store representative. This year, the rooftop garden has produced tomatoes, lettuces, and strawberries. The programme looks to be expanded and rolled-out to other stores. n “In the past 12 months, we’ve added dozens of new products for customers, including dairy-free cheeses, ice cream, and vegan meals. We recently commenced ranging popular products like Tofurky, Sheese, Funky Fields, and Follow Your Heart. There is a lot of evidence that tells us this category will only continue to grow and we’re focused on building a vegan range for customers that is high quality, convenient and affordable.” Germany and the UK are the two fastest growing vegan markets in the world, closely followed by Australia. Euromonitor believe that by 2020, the packaged vegan food market is set to double. n
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EXPOroundup FANCY FOOD SHOW HIGHLIGHTS
NEW
TREND – AYURVEDA
The Indian practice of holistic medicine Ayurveda is certainly not new. However, with the rise of consumers looking at their diet and lifestyles holistically manufacturers are now looking to brand their products with the term.
HEALING SPICES The Dancing Elephant has introduced a range of cups of Kitchari, an Indian stew with a powerful combination of mung bean lentils, grains and healing spices. A staple of the Ayurvedic diet, Kitchari (meaning ‘mixture’) offers numerous health benefits, detoxification, immunity-building and anti-inflammatory qualities. Each ingredient is purposefully added and combined in the right quantities to deliver maximum benefit. They are a nutritious new way to provide the body with what it really needs. It is available in three varieties – Spinach & Mint, Butternut Squash & Kaffir Lime, and Edamame & Curry Leaves, in 12oz microwaveable, BPA-free, recyclable containers.
BENEFICIAL COMBINATIONS
Atina Foods specialise in traditionally prepared condiments including Herbal Jams, Pastes and Salt Pickles using local and international ingredients based on the ancient system of Indian medicine, Ayurveda. Its energetic and unique flavours are skilfully combined to bring out the best taste and health benefit for consumers’ food and self. Made in the style of Ayurvedic Lehyam, its Herbal Jams use an alchemy of known ancient blends to bring out the best flavour and regeneration to the body and mind. The Original Chutney and Herbal Jams are an Indian wellness condiment eaten for easy digestion of food and tastiness. They follow the traditional method of making lehyams preserving a remedy in jaggery (unrefined solidified cane sugar juice), this assures retention of the potency of the herbs and spices as well as great taste when it is eaten.
BOHANA LIFE
Bohana has launched a new range of popped water lily seeds, also known as Makhana. These seeds have been consumed in India for thousands of years and come from a place of natural and spiritual goodness. Bahana have reinvented this ancient puffed snack to make it a protein packed, plant-based offering. Currently available in three varieties – Himalayan Pink Salt, Wild White Cheddar and Soulful Spice.
TREND – VINEGAR BOOST
Over the last few years, there has been a significant increase in consumers drinking straight apple cider vinegar for health benefits. It is promoted as a detoxifying, cure-all remedy. This has seen the creation of a new beverage category with several manufacturers jumping on the bandwagon to help make the drink more palatable.
BEST IN CLASS
BluePrint is a pioneer in its field with a commitment to helping people lead authentic and more energy-filled lives. It delivers pure organic ingredients and delicious blends to give consumers the energy and nutrition they need. The company has launched three new beverages that cater to consumers who don’t have time to disguise their apple cider vinegar shot in the morning. Flavours include Ginger Maple, Turmeric, and Blueberry Hibiscus. Its products are USDA certified organic, non-gmo verified, vegan, kosher certified, dairy-free, gluten-free and contain no added sweeteners.
LET’S TALK SODAS
For thousands of years, vinegar has been used as a thirst quencher and health aide. Now, Crafted Brand Company has introduced low calorie Organic Sparkling Drinking Vinegars that provide all the benefits of vinegar, with the great taste of natural ingredients and 100 percent agave nectar. Consumers can enjoy these refreshing concoctions any time to give their day a healthy boost. The beverages are organic, natural, contain no preservatives or artificial ingredients and are low calorie. Flavours in the range include Blackberry, Strawberry, Ginger and Club Soda.
FIERY CIDER
Fire Brew is an apple cider vinegar-based health tonic unlike any other. It uses fresh, nutrient dense vegetables, fruits, herbs and spices and steep them in a raw, organic apple cider vinegar. Over a period of weeks, all the ingredients get stirred and macerated so the vitamins and minerals extract into the vinegar. After that, it is strained and pressed to make the concentrated vitamin-packed liquid. Fire Brew is not a relaxing sipping vinegar; it is a concentrated and potent wellness booster. It is available in Strawberry Basil, Berry, Wheatgrass, Beet Blend, Chai Blend, Citrus Blend, Hibiscus Blend, Garden Blend, and a vegan Unsweetened Blend.
Contact your DKSH New Zealand Limited representative for more information
For more trends seen at the Fancy Food Show visit www.supermarketnews.co.nz. July 2018
I 7
techbytes
DRONE DELIVERIES Iceland’s largest online marketplace Aha has announced its plans to expand the number of drones it flies through one town to deliver products over the next two years. The drones can be used to deliver everything from pizzas to milk so long as they are below the maximum weight of three kilos. The company’s success is critical for companies like UberEats, who are also piloting drone delivery programmes. n
MICROSOFT TO RIVAL AMAZON High-tech shopping carts could cut out the cashier should Microsoft follow Amazon’s lead into the grocery tech business. According to sources, Microsoft is working to develop technology to eliminate checkout lines at stores by tracking what shoppers add to their carts. Sources told Reuters that the company has shown samples to retailers and been in discussion with Walmart about a potential collaboration. Another technology company, AVA Retail, is developing a check-out free technology that is based using camera sensors and artificial intelligence. This new technology from Microsoft would rival Amazon Go, the custom designed store that cuts out the need for a checkout. Supermarket Guru Phil Lempert believes that cart-based technology is rather old school with IBM having tried that over 20 years ago. “The problem is maintenance at the store level of the unit is too costly, and people kill the units by banging on them, trying to steal them,” said Lempert. n
‘SMART’ FOOD PACKAGING
TESCO BEATS
One Tesco customer has turned all the sounds and commentaries from their local supermarket’s self-checkout machine into a dance track. To many customers that get frustrated with ‘unexpected item in the bagging area’ this probably sounds like a nightmare, however, the till beeps are incredibly catchy. The clip has been listened to nearly a million times and customers are loving it. Some Twitter users have let those customers who dislike the sounds and beeps at the self-checkout kiosks in on a little-
known secret – a mute button can be found on the screen, silencing the nagging. n
It’s a consumer’s worst nightmare, finding out that food products are exposed to outbreaks of diseases and bugs. Despite food manufacturers and supermarket’s best efforts there is still opportunities for this to occur. In an effort to protect customers from tainted meat, fruit and vegetables, a new type of ‘smart’ food packaging may hold the key to preventing these food-borne illnesses. The packaging was developed by a team at McMaster University in Canada that monitors the bacteria in food and emits a fluorescent signal if they are detected.
Current methods for testing pathogens involve lengthy processes of taking product into a lab and waiting to see if bacteria grows. However, this new technology uses an inkjet printer to apply specific molecules onto plastic wrap used to store food. Currently the packaging only is able to detect E.Coli but the team is working on other ways to detect other types like salmonella. It is estimated that the technology will cost a couple of cents to be printed onto standard food packaging. n
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Introducing want to try something irresistible?
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Contact your DKSH New Zealand Limited representative for more information.
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GOING
‘Au Natural’
Consumer lifestyles have been at the forefront of food and beverage trends in recent years. Kiwis are becoming increasingly interested in what they’re consuming and are conscious of wanting to make more natural choices. The beverage aisle is bursting with innovation as manufacturers meet key shifts in the beverage category. Ingredients and product labels have been in the spotlight and it has seen a rise in organic and natural options in supermarkets, as well as in restaurants, cafés and vending machines. “The ‘natural trend’ is a global megatrend that shows no signs of slowing down,” said Carl Edkins, knowledge and insights manager, Coca-Cola Oceania. “People are more conscious of how everything they consume is processed and they want to be closer to nature, including the things they eat and drink.” Natural beverages have fewer ingredients, they’re produced by natural processes like fermentation or are bottled at the source, with ingredients and a product label that is easily understandable. “Followers of the natural trend
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aren’t limited to any one demographic. Once early adopters take note of a new trend, many of us are willing to follow, whether that be busy professionals, gym goers or anyone looking to limit their intake of processed products.” In 2017, use of stevia in beverages increased over 10 percent with manufacturers finding a great-tasting, plant-based alternative to sugar. Products launched with stevia in 2017 included baking, juice drinks, dairy, carbonated soft drinks and confectionery. “People want goodness and taste, so we’re seeing more naturally derived products that still has a focus on taste,” said Edkins. “Consumers are always looking for more natural beverages like coconut water or Keri 50% Less Sugar Fruit Drink – which uses stevia and contains fruit with natural sweetness and less sugar. This trend led to the release of the new Coca-Cola Stevia No Sugar, which uses the sweetness of the stevia plant.” Stevia is derived from the stevia leaf and is the leading sugar alternative from a natural source - the leaf of the stevia plant. The use of stevia leaf sweeteners in beverages has grown by 10 percent in the past year with the top two regions using the plant-based option being Asia/Pacific at 40 percent and Europe at 22 percent. The Coca-Cola Company is also one of the leading vendors in the global packaged coconut water market that is expected to be valued at US$8.3 billion by 2023 as it is seen as a “valueadded option” that perfectly matches the current trend. “In New Zealand, Coca-Cola has seen Zico coconut water sales skyrocket since 2013. Likewise, the bottled water category has grown by OWNED
more than 150 percent since 2012, and sparkling water has more than doubled as people seek more natural alternatives to soft drinks. We’ve seen a blurring of lines between categories like soft drinks, sparkling waters, sports drinks and more as consumers look for new choices for every beverage occasion.” Coca-Cola has been charging towards its goal to make low and no-sugar drinks more visible and easier to find, and bringing more offerings like organic juice, coconut water, dairy, grab-andgo coffee and purified waters to more people in more places. Last year the company reduced sugar in more than 500 of its drinks around the globe, adding to the 30 percent of more than 3900 beverages that already fall into the low or no-sugar category. “We are putting the consumer first and rethinking some of our beverage recipes to reduce sugar and invested in making the next generation of zerokilojoule sugar alternatives with the goal to give consumers the low and no-sugar drinks they want without having to give up the great tastes they know and love.” Whether it’s reducing packaging size, improved sugar alternatives, or natural
or organic ingredients, there are huge opportunities for the beverage aisle and that lies in innovation. Coca-Cola Stevia No Sugar is a good example of a recent innovation in New Zealand. “Our team and our partners have spent almost ten years working with stevia, a sugar alternative from a natural source the stevia plant. It was not as simple as finding a sweetener and swapping that out for sugar. It had to have a taste that people will love. Coca-Cola Stevia No Sugar is the result of thousands of hours working with the stevia plant to get the best from it.” “We are always trying to understand where the consumer is going next and how we innovate in these new spaces. What’s the next generation of beverage products and how do we evolve their taste profile with exciting new products? We look to see how the world will be consuming beverages in the future and there are lots of opportunities for us to continue to drive exciting new beverages for consumers in this rapidly evolving landscape.” n Sponsored by Coca-Cola
beveragenews
CLEMENT TO JOIN SYNLAIT CANNABIS-INFUSED WATER
Synlait Milk has announced Leon Clement will join the organisation as Chief Executive Officer from mid-August. This follows a global recruitment search after co-founder and inaugural CEO John Penno’s announcement in November 2017 of his intention to stand down. “Leon has led major businesses internationally, specifically in Vietnam and Sri Lanka, and has deep experience in the branded dairy sector,” said Graeme Milne, Chairman. “He brings a broad range of skills and experience that is relevant to Synlait’s future strategic initiatives. The Board of Directors is pleased to have attracted a high-calibre candidate. With a reputable senior leadership team in place and an organisation of great people, we’re confident the incoming CEO has the skills and capabilities to lead Synlait to an even better future off the platform that has been created thus far.” Most recently, Clement was Fonterra’s managing director of Fonterra Brands New Zealand and prior to that was its managing director of Sri Lanka and Indian Subcontinent. Having held numerous senior leadership positions throughout his career, Clement is excited by the opportunities Synlait has created and is looking forward to taking on the role of CEO. n
Heineken has introduced a new THC-infused cannabis beverage brand Lagunitas. Joining forces with Californian cannabis manufacturer CannaCraft to create the Hi-Fi Hops line which sees sparkling water infused with THC and/or CBD (cannabidiol). Constellation Brands last year paid US$191 million for a stake in Canopy Growth Corporation, a supplier of medicinal marijuana following the growth of cannabis used in food and beverages. The beverage will be available in two dosages, one with 10mg of THC and one with 5mg of THC and 5mg of CBD. “Hi-Fi Hops is not the first chapter in the love affair between cannabis and Lagunitas, but it is one of the most exciting,” said Lagunitas Brewing Company CEO Maria Stipp. n
ADDITIONAL GROWTH FOR DKSH DKSH has acquired Davies Foods’ beverage business in New Zealand. With the takeover, DKSH positions itself for additional growth in NZ. The diversified assortment matches DKSH’s existing local product portfolio. The company will obtain the trademark rights and will foster sales, marketing and distribution network, in particular expand coverage of the products in the convenience channels. The beverage portfolio includes energy drinks, sport and soft drinks as well as water. n
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Improving Price Perception is the Ticket to Improved Sales Mitesh Khatri, Shopper Tracker GM ANZ
It’s been over ten years since
the financial world began to crumble in what we know as the global financial crisis (GFC). Price competition was heated in the years following the GFC with the rise of new operating models that stripped parts out of the value chain. New entrants have been gaining ground through discount business models, mass merchants and online channels. The competition has accelerated food deflation, which has been driven by aggressive pricing. The pricing pressure for supermarket retailers is immense in all countries we interview shoppers. Price is the most crucial factor for shoppers in deciding which product to buy. Retailers would love to be 5 percent higher in price relative to competition and have price perception parity. Shoppers make the end decision on price and whether it is fair.
10 KEY QUESTIONS TO ASK YOURSELF ON PRICE
1. Is price a key differentiator to my shoppers?
Price is important to all shoppers and is a hygiene factor. The key question to ask is do we need to overinvest in it and if so where within my product portfolio?
overall store price perception and drive traffic to store. In certain categories shoppers say “if you price these wel,l I’ll think the retailer is better priced in general.” These include fresh produce, baby and alcohol categories (where alcohol is sold in the supermarket store).
4. Do promotions in the category encourage shoppers to store?
5. Do I need to be in the catalogue/ mailer or do I just need in-store price investment?
2. Do we focus more on price reassurance (e.g. EDLP) or specials (e.g. high-lo)?
If price is key to your shoppers, understanding if you focus more on EDLP or specials for your segments and brands is important. For example, in categories like tea, certain segments like everyday black tea are expected to be on price reassurance. Other segments of tea can engage shoppers with specials such as infusions or herbal.
3. Is the category a price beacon setting store price perceptions?
Price beacon categories help retailers with their
This tells us where shoppers would most like to see promotions pre-store e.g. ATL, catalogue or mailer. This is a measure of traffic driving, i.e. the ability of the promotion to drive shoppers into one retailer rather than a competitor store.
Australia and New Zealand are the only two markets in the world which still have a catalogues/ mailers. This poses additional questions of how efficient these vehicles are? What products should be in them? What should be on the front page? Some categories need to be in the catalogue or mailer as it drives store choice like baby products. Other categories need to just be on a gondola end but not as much in the catalogue/mailer such as chocolate or snacking categories.
6. How deep do I cut the price on promotion?
How deep the promotion is, is influenced by how much the shopper knows the normal price of what they buy. If price knowledge is high we need to consider deeper discounts and calling out the savings to the shopper because it’s more meaningful to them (e.g. baby formula, cat food, coffee). If price knowledge is weak we create an impression of a bargain and keep the discount
shallow (e.g. herbs and spices, batteries and toilet cleaners).
7. Is a price promotion driving incremental sales or cannibalising margin (i.e. they would have bought it anyway)?
Trade spend is one of the highest budgets for suppliers. Is it efficient spend? Some categories are truly incremental and drive people into buying on the trip or incremental units e.g. energy drinks. Other categories we are just giving away margin when we promote e.g. packaged bread.
8. Is the promotion likely to drive expandable consumption or stock up behaviour?
In chocolate blocks, the more a shopper buys the more they are likely to consume, it makes sense. Categories such as deodorants are less likely to drive any incremental use and drives stocking up behaviour when on promotion.
9. Which shoppers are less focused on price and willing to pay more?
In almost all categories there are shoppers who want to pay more for better quality products. Finding who these people are and how to target them is key to offset strong pricing plays on core lines.
10.How are pricing expectations and perceptions doing over time for my shoppers?
Markets, retailers, categories and shoppers change and with this the expectations of what is normal. Understanding trends on price perception helps to target and change investment relative to other factors e.g. product attributes, range and merchandising.
Driving price satisfaction through targeted investment can drive overall business performance. Shoppers set their expectations on price and we need to check if we are delivering to these expectations. Where is price importance and performance placed for your retailers, categories, brands and key shoppers? Shopper Tracker interviews over 100,000 Shopper in Australian and 40,000+ shoppers in New Zealand across Supermarket, Petrol and Convenience Channels and Traditional Liquor in order to drive strategic shopper led commercial decisions at retailer, category, segment and brand level. For more information please reach out to Mitesh Khatri, GM at Shopper Tracker ANZ: Mitesh.Khatri@shoppertracker.com.au n
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best of whattostock ANNIES – 100% FRUIT BARS Annie’s has a passion for healthy, good quality food. Their promise is to only ever make food you trust – Annie’s Fruit Bars are made from 100 percent fruit pulp that is simply air-dried, that’s it. This makes Annie’s a great choice for everyone, especially those with food allergies. There’s a long list of ingredients that aren’t in Annie’s Fruit Bars – there’s no gluten, nuts, dairy, additives, yeast, sulphites, colours, preservatives, added sugar or concentrates. Annie’s Fruit Bars come in six delicious flavours – the two newest flavours Banana Blueberry and Mango Passion are proving a great hit with consumers. The snackable bars are the perfect size for a convenient lunchbox filler or on-the-go snack.
Made in the top of the South Island by the Mãorifamily owned food business – Kono, Annie’s has been a delicious and healthy snack choice for over 30 years, so it’s a food you can trust!
Ginger Crunch is as Kiwi as it gets, and consumers would be hard pressed to find a more nostalgic slice. This Kiwi favourite has been making an appearance in New Zealand cookbooks for decades, no wonder it only takes one bite to send customers tripping down memory lane. Explosive Ginger bites have recently been added to Loaf’s range of handcrafted mini bites. Don’t worry, they haven’t messed with the recipe, it’s still the same delicious combination of butter, flour, sugar, ginger and golden syrup. The new ginger bites
are proving to be very popular, after just four weeks on the market they’ve already shot to the fourth biggest seller in the range, challenging the all-time favourites rocky road, gooey caramel and brownie bites.
EasiYo have been delivering delicious, homemade Yogurt to Kiwis for over 25 years. Recently their EasiYo Yogurt packs have had a refresh. The new look packs come in a fresh look highlighting a natural, home style feel. While their look has changed, their delicious and creamy yogurt remains the same and still has no artificial ingredients and is packed with live cultures. The EasiYo range includes the Everyday range with fresh, simple flavours; a Greek-Style Range with gourmet flavours including Greek-Style Coconut and Greek-Style Blueberry; and the Wellbeing range
with low fat and unsweetened Yogurts. A great partner to EasiYo Yogurts are the EasiYo Reusable Yogurt Pouches. These are a fantastic choice for school lunchboxes. The pouches are dishwasher and freezer safe, as well as BPA free. EasiYo Yogurt Pouches come in three colourful designs and can hold 130mL of EasiYo Yogurt.
YUM Granola is creating breakfast lovers across the country with its delicious, award-winning, artisan granolas made fresh in Nelson. All YUM products are made with nutrient dense, organic ingredients, while being gluten free, dairy free, grain free/Paleo, low sugar, high fibre, and packed of whole food goodness. YUM currently has four flavours an Original Granola which is toasted with hazelnuts and Nelson honey, Dark Chocolate Granola, a beautiful combo of cacao, Blenheim hazelnuts, and goji berries, Bircher Muesli, an untoasted muesli with blackcurrants
and cinnamon and Creamy Apple Chai Porridge, an oat-free porridge with chai spices and toasted hazelnuts. YUM is available across the country in the main cereal aisle, in 400g resealable stand-up kraft pouches.
Whittaker’s has travelled far and wide in search for the very finest ingredients, and now they want to share three exquisite new Destinations flavours with you. Across the Tasman they found the nutty, chocolate and caramel flavours of Australian Wattleseed, which they caramelised around crunchy batch roasted cashew nut pieces and surrounded with their 33 percent cocoa Creamy Milk chocolate. From the world renowned Sambirano Valley in Madagascar they bring their darkest chocolate yet – 82 percent cocoa. And from Colombia they’ve returned with the
fresh taste of tropical mango, which is perfectly balanced with tangy and bright passionfruit in their delicious White Chocolate.
For more information please contact orders@annies. co.nz or visit www.annies.co.nz.
LOAF
For more information contact Kirsty@loaf.co.nz or phone 021 242 5370
EASIYO
For more information head to www.easiyo.com or call 09 415 8185.
YUM GRANOLA
For more information visit www.yumnz.co.nz or contact us at sarah@yumnz.co.nz.
WHITTAKER’S
For more information visit www.whittakers.co.nz or phone 04 237 5021.
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storeofthemonth FOUR SQUARE MATAKANA On their first date together, Brad Walker told his to-be wife that he was going to own a Four Square. It was a bold proclamation, and it wasn’t going to be a smooth ride, but Brad doesn’t see challenges – he only sees opportunities. Brad had always been business minded and dreamed of owning his own business. After a lengthy stint in commercial banking, he took the plunge and signed up for the Foodstuffs owner/operator programme. “In the corporate world you get sucked into a cycle of promotions and pay rises,” he said. “It’s quite difficult to say ‘enough’s enough’ and move away, but eventually I did.” It was the perfect time – their two kids were a good age, Foodstuffs was obliging and Brad spent time in different stores across the country. One of those stores was Four Square in Ohope and when the opportunity arose to buy it he did, despite Claire never having laid eyes on the place. “Claire was super supportive,” explained Brad. “When I came home and told her about Ohope it was probably a bit of a surprise, but it worked out!” This was set to become something of a pattern – Brad also made the choice to buy the Matakana store without Claire seeing it. The Walkers still live in Auckland and make the 40-minute drive every day. Their two children are heavily involved in swimming and with facilities lacking in Matakana, Brad and Claire would have been facing a commute wherever they chose to base themselves. “We’ve talked to so many people and they all say we’re doing the commute the right way,” said Claire. “Long-term we’d like to move up but right now if the kids are happy, we’re happy.” Since taking over the store in October last year, the highlight for Brad and Claire has been the community. Matakana itself is small – a population of around 300 according to census data – but the town is a service hub for surrounding centres like Leigh. “They’ve been great,” said Brad. “We really get the sense that they want us to succeed. We’ve been made to feel really welcome ever since we arrived and we want to repay their faith in us. We want to become a destination store, where people come for the
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experience, not necessarily just for a weekly shop.” Also important is the team they inherited. While the Walkers did bring some employees with them, the majority of workers are from the area. In summer when the population of Matakana swells, the Four Square employs a few extra workers, mainly from the local high schools. “We’ve got a team of great workers and decision makers who have bought into our vision and what we want to do with the store,” said Brad. “We want to be remarkable.” “We thank our lucky stars,” said Claire. “You hear about stores that have trouble with their staff and have quite a high turnover but we haven’t had that at all. They love the community love the customers – they’re basically family.” The fact that Matakana Four Square stocks so many local producers gives the residents a connection to the store and builds customer loyalty. Local brands include Daily Organics kombucha, Matakana Smokehouse salmon, oob organic, Matakana Bacon Company and many others. Customers can find food made by their neighbour in amongst the Watties and
Maggi, or buy bacon that they could previously only get at the local farmers market, held every Saturday just across the road from the Four Square. “The kombucha is made a few doors down from us,” said Brad. “If we run out we can give them a call and they’ll just walk some over.” Not only is the customer experience key to Brad and Claire’s business ethos, but their feedback also drives the direction of the store. A small core of regular customers means that relationships are easy to build, and the Walkers genuinely care about their opinions. “We like to talk to them, we know what they like and what they don’t like, and they tell us what new things they’d like to see,” said Brad. “We’re quite courageous about trying new things.” The Walkers heard from the community that they wanted more food-to-go options, so they responded by first starting an industrial bakery, then increasing the capacity when customers put in requests for hot chickens. The bakery, as most things are in Matakana, is “just around the corner.” Now that the hot chickens and fresh bread are well established, the Walkers are
Footprint 200 sqm
6,000 SKUs
Selling Area 180 sqm
Opening Date: 2012
161 carparks
Owner-Operator:
Two full checkouts
BRAD & CLAIRE
14 staff
WALKER
bags. However, the response was so overwhelmingly positive that within six weeks the Walkers had decided that regardless of the overall outcome, Four Square Matakana would no longer use single-use plastics bags. A large sign reminds shoppers at the door of the new status quo, but Matakana is not immune to the issues that have affected other stores around the country. “We’ll have customers coming in who leave their bags in the boot of their car, so they just end up buying new bags, which sort of defeats the purpose,” explained Brad. “What we’re looking at doing is making an app so whenever someone comes within range of the store they’ll receive a reminder to bring in their reusable bags. Hopefully that will help people and we can become truly plastic-bag free.” The move away from plastic bags was underway in Matakana in the months before the Walkers arrived, with local initiative Boomerang Bags introducing its reusable bags made from recycled cloth. The intention is for customers to take a bag, use it and wash it before returning it for someone else to use. However, Claire and Brad have found that the bags are so appealing that no one wants to return them.
“They’re very proud of their Boomerang Bag and they’ll always show us that they’re still using it,” said Brad. “It isn’t really the point, but at least they’re not using plastic.” With a soft-plastics recycling bin already in-store, the next things on the sustainability agenda is produce packaging. “We have people ask about that, how we can be plastic free but still sell produce in plastic. We’re looking at options at the moment.” For the Walkers, it’s important to give back to the community which has given so much to them. They support local fundraising initiatives and local schools, and staff members are given paid volunteer days when they can give back to the people they see from behind the checkout. Brad and Claire have a bold vision for their store and the role it will play in the community. “We want to be known for everything, whether it be customer service, as employers, what we do in the community or just what food we offer,” said Brad. “It’s not going to be easy – if it were it wouldn’t be a vision – but that’s what we want to achieve.” n
moving on to their next challenge – sushi. “It’s been a challenge, especially getting it consistent,” admitted Brad. “We’ve had some Japanese chefs in to show the team how it’s done, but we’re still not quite ready to launch it yet.” Now that the larger supermarkets have started grocery delivery to the Matakana area, the Four Square could come under threat from the convenience of online ordering. However, the Walkers aren’t too fazed. “We often have people shopping who don’t need anything, but they just want to come to the Four Square for an outing and a chat,” said Claire. “Continuing that is something we’re really intent on doing.” “People don’t shop the same way anymore,” said Brad. “They’ll make three or four trips to the supermarket a week rather than one big one, so as long as we’re keeping the customer happy in-store, I think we’ll keep them coming back.” Sustainability is also a key focus for the Walkers, and Four Square Matakana was part of the Foodstuffs pilot programme around removing single-use plastic
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Delivering Delicious Juice
Bickford’s is an Australian family owned and operated company who have been producing premium quality beverages for over a century. With a large product portfolio consisting of cordial, juice, carbonated beverages, syrups and water, Bickford’s ensures that its products are high in quality and taste great. The Bickford’s juice range has recently landed in NZ territory, with a range of seven different flavour variants, each known for its high anti-oxidant content and various health benefits. The juices contain a variety of vitamins, fibre and in some variants minerals and all have no artificial colours, flavours or sweeteners to deliver delicious juice with natural goodness. Bickford’s pomegranate juice is one of the most popular flavours on shelf, with at least 70 percent of the juice coming direct from the Bickford’s pomegranate farm in the Northern Mallee of South Australia, where the pomegranates are handpicked during harvest. To say that Bickford’s juices are 10/10 would be an understatement, so be sure to be in touch to stock some of the best juices in the market. For more information contact Brett Hayde of Centurion Sales and Marketing on brett.hayde@centurionsales.co.nz or phone 021 444 772 or Chris Bhimy on 021 239 5958.
Cracker Innovator
Pasta That Loves You Back
San Remo Pulse Pasta is made using flour from pulses including peas, lentils, chickpeas and borlotti beans instead of wheat to boost the protein content and other nutritional benefits. With a great taste, San Remo Pulse Pasta is gluten free, so it is suitable for consumers who are coeliac or gluten intolerant. It is also a good source of protein as it contains 65 percent more compared to regular San Remo pasta. It is 25 percent lower in carbohydrates and is an excellent source of fibre with more than four times compared to other products in the range.
Attack Symptoms
Bringing five exciting new lines to the rice cracker segment this July, Peckish continues to be an innovator in the category. The new Peckish Brown Rice Paprika and Brown Rice Rosemary & Sea Salt bring on trend flavours to the Peckish brand, satisfying consumer demand for new news, and continuing to drive the better-for-you snacking segment. Peckish Brown Rice Lightly Salted Snack Packs and Brown rice No Salt Snack Packs offer consumers the ability to have better-for-you snacking on the go. Sriracha launching in to the Peckish White Rice Trays offers consumers that flavour punch they seek in the Peckish brand. All lines available now.
The American Dream
Lewis Road Creamery has launched its latest mouthwatering flavour of its popular premium ice cream. Lewis Road Creamery’s Peanut Butter and Jelly Ice Cream is the perfect collision of savoury and sweet that takes this classic American flavour combo to a whole new level of deliciousness. Made using Pic’s Peanut Butter, the ice cream has a distinct raspberry swirl using OOB organic raspberries for a tasty touch of fruity sweetness. Like all Lewis Road ice creams, it is made using only the finest ingredients including free range eggs.
Multichem is excited to develop a new and unique cold and flu remedy for the NZ market. Ethics Natural Relief has a unique combination of herbs and natural ingredients to attack and help alleviate cold and flu symptoms. “Ethics Natural Relief Ills and Chills/Extra are natural products which consumers will understand the benefits of,” said Deejay O’Dowd, grocery account manager. “Additionally, Ethics Natural Relief is safe for children from nine-years-old to use. We know that this type of natural product works, as in the Australian market there are now several brands of natural cold and flu relief, including private label.” Ethics Natural Relief is available in two formats to satisfy specific consumer requirements. For more information contact Multichem on 09 488 0330.
Fridge-Safe Fruit Pouches In response to consumer demand for a more convenient and contemporary format for packaged fruit, Dole has launched a range of pineapple and tropical fruit in resealable pouches. Unlike cans, which aren’t suitable for chilled storing, the new pouches can be resealed and placed directly in the fridge, reducing waste and the need to use a container. Research and overseas success
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shows the offer will attract new people to the Canned Fruit category and trade existing consumers up on price, thereby delivering category growth. The Dole pouch range includes Pineapple Pieces, Pineapple Chunks and Tropical Fruit Chunks, in a 400g serving. For information on Dole Packaged Foods, talk to your PAVÉ Ltd. sales rep or call 09 302 1190.
What Hair Wants
From the shores of Morocco to the carnivals of Brazil, consumers can indulge in an international scent adventure with OGX. Rich and rewarding, the Argan Oil of Morocco, Keratin Therapy, Cherry Blossom and Coconut Milk collections will give hair the first class experience it wants and needs. OGX was the number one hair care brand in Australia last year. Each innovative haircare formula is made with exotic ingredients to help hair shine, move, curl up, or hold tight. The collections are fun and has hair looking, smelling and feeling like you’ve just walked out of the salon.
Sprouted Goodness
Huntley & Palmers has released a new Cracker Bread range made with the goodness of sprouted grains. The Cracker Bread range is a great source of fibre with no artificial colours or flavours and a four Health Star rating. These crackers are larger in size and can be snapped into smaller pieces. Perfect for lunch with toppings, spread with a dip or even dunked in soups. The range includes Sprouted Rye with Pumpkin Seeds & Sea Salt, Sprouted Oat with Sunflower Seeds & Rosemary, and Sprouted Wheat Sesame & Cumin Seeds.
Make It At Home
Introducing Arkadia Make Fresh Ice Cream, a new, unique product available nationally. This easy to make ice cream mix is simple and delicious, and best of all, you don’t even need an ice-cream making machine. Available in five family favourite flavours, Make Fresh ice cream is deal for consumers of all ages and abilities. All you need to do is add milk and cream, electric whisk and freeze. Flavours include Creamy Vanilla Bean, Chocolate, Salted Caramel, Cookies & Cream, and Coconut with Dark Chocolate Flakes.
On The Go Care
If you’ve ever had food stuck in your teeth or that furry feeling during the day, you’ll see the appeal of a convenient way to clean outside your normal morning/evening routines. New Reach Floss Picks tap into this need and will develop the on-the-go oral care segment to drive incremental category sales. Perfect for use at work, at home, or out and about, they clean three ways: by removing left-over food between teeth with the pick, by flossing away plaque and by scraping your tongue. For information on Reach products, talk to your PAVÉ Ltd. sales rep or call 09 302 1190.
Bite Sized Treat
Mentos Choco are delicious, caramel chews filled with real chocolate, now available in three flavours – Caramel, Mint and new White, appealing to confectionery consumers looking for a bite-size indulgent treat. The convenient roll format allows portion control or the ability to share with others. Mentos is brought to you by DKSH New Zealand.
Safer, Natural Ingredients New Zealand’s leading brand in sustainability, ecostore, has announced the launch of its new oral care range that includes toothpaste, mouthwash and toothbrush. The launch completes its range of home, body and baby products. The oral care range uses safer, naturally derived ingredients and the toothbrush is made from plant plastic, ensuring they are not only ‘safer-for-you’ but also for the planet. The toothpaste and mouthwash use naturally-derived ingredients including magnolia bark extract and kanuka oil, to help reduce plaque, prevent tartar build-up, fight cavities and protect against germs that cause bad breath. Natural essential oils including peppermint, spearmint, menthol and clover-leaf are used as an alternative to synthetic flavours to provide a long-lasting freshness.
Superior Hydration OSOM has launched a new refreshing range of Ayurvedic spiced New Zealand Spring Water with no sugar and no artificial sweeteners – providing holistic hydration for mind, body and soul. Detox, Calming and Restore are loaded with fairtrade spices providing detoxifying, calming and restoring support for your wellbeing. Drink chilled, warm or add chia seeds, consumers will find their zen from the three available blends. OSOM is a family owned and operated local Auckland-based enterprise.
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newzealandfeature CELEBRATING NZ BUSINESSES
We are often thought of as being a country where tall poppies are not celebrated, but the truth is that we are a country of innovators and trendsetters and sometimes it is hard in the day to day of business to celebrate those brands and their achievements. In this feature we showcase some New Zealand businesses, talking to them about their brand edge, the passion that drives them, and how they are taking on the world with their Kiwi brand.
FRESH TO ORDER Rocket Foods (formally Rocket Kitchen Wholesale) have been baking an array of sweet and savoury products for over 20 years in its Auckland-based kitchen. The Rocket Foods range is baked from scratch using real ingredients like eggs and butter, by its team of skilled bakers. There’s not a pre-mixed product in sight. Rocket Foods pride themselves on classic recipes, and everything is baked and delivered fresh to order,
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to guarantee high quality and excellent taste. Its savoury range features classic New Zealand favourites
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like bacon and egg pies, quiches and sausage rolls. Your customers will be able to taste the difference between Rocket Foods and other brands, as there is no compromise on the quality of ingredients.
Rocket Foods products are packed full of real ingredients and taste just like it was homemade, perfect for shoppers. The increasingly successful savoury range is stocked in supermarket delis across the North Island, including New World, Pak’nSave and Countdown who support its mission to make exceptional food more accessible for kiwis. Following this success, a particularly moreish sweet range featuring whole fresh cakes are now being stocked in some Auckland-based New World and Countdown bakeries. The range includes Chocolate, Carrot, Lemon Cream and Non-Gluten Plum and Orange. For more information or to order, please contact enquiries@rocketfoods. co.nz or call Steve on 027 661 1676. n
newzealandfeature JUST BRILLIANT Fogdog was started by Andrew Forgden in 2009 following a few beers with his mate ‘Chook’. Forgden was making his own beer batter to take on his boat, so proposed starting a company to sell product to fellow boaties. The rest is history. Customer demand has led Fogdog to further develop from batters into crumbs and include gluten-free offerings. The range is truly Kiwi using authentic, premium products. Its latest addition to the range is a Gluten Free Fritter. This premium gluten-free shake and bake is as good as it gets. Perfect for the seafood counter, it is a fully sealed 190g pouch with high moisture barrier and 24-month shelf life. Bright packaging to catch shoppers and draw them to the seafood counter. It really is a cracker of a product that can go on just about anything you can imagine, seafood, chicken, vegetables and whatever takes your fancy. A light and crispy coating sure to impress the whole family, even if
GENUINE KIWIANA
Foxton Fizz is set to be seen at more supermarkets around the country this summer having a new sales and merchandising arrangement with DKSH, giving the 100-year-old brand an extended reach. While already selling well in supermarkets, cafes and convenience stores around New Zealand, the sales and merchandising support will ensure the brand is even easier for
grocery buyers to access. Only a very small group of brands have had 100 years of New Zealand ownership and this is one of the key differences that makes it a genuine item of kiwiana, loved by many and with a huge following on social media. With a new flavour on the horizon, and the craft soda market in a huge growth phase, Foxton Fizz is set to see strong sales in supermarkets in the coming months. n
they aren’t following a gluten-free lifestyle. The fritter mix is just the right blend of goodness to add a touch of premium to any dish. It doesn’t get any easy, quite simply, shake – bake – and eat. Fogdog is proudly made in New Zealand. For more information contact Ayesha Singh on email ayesha@ fogdog.co.nz or phone 021 205 0951. n
Perfect for the seafood counter Hang it, stand it, fully sealed 190g pouch with high moisture barrier and 24 month shelf life. Bright packaging to catch the female shopper and draw them to the seafood counter. It’s a cracker of a product that can go on just about anything you can imagine, seafood, chicken, vegetables and whatever takes your fancy. A light and crispy coating sure to impress the whole family, even if they haven’t tried gluten free. Just the right blend of goodness to add a touch of premium to any dish! Simple – Doesn’t get any easier, Shake Bake – Eat - Done! If you want the best results then Shake – shallow Fry – Eat - Done!
Proudly made by our good mates right here in NZ.
For more information contact Ayesha Singh E: ayesha@fogdog.co.nz or Ph. 021 205 0951 July 2018
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From Cambridgeshire to Australia to Horowhenua, Daniel Todd’s journey to becoming a free-range pig farmer has been far from traditional. Seventeen years at an electronics firm saw him develop a curiosity for pig farming – in particular, the ethical farming of rare pig breeds.
Daniel Todd WOODY’S FARM
Born in Peterborough, UK, in 1974, Todd moved to Australia in 2015 where he met his partner Claire, who originally hailed from Palmerston North. The stars aligned – Claire wanted to move back to New Zealand to be closer to her family, and Daniel had become bored with his job. “It was no longer challenging or rewarding,” he said. “I thought a change would be good.” It was no small change. Daniel started his professional life with a degree in history and working for a consumer electronics company, managing the buying and business strategy, while Claire completed a law degree and worked for the likes
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of Yahoo and ABC. Neither of them had any experience in pig farming, but that wasn’t about to put Daniel off. He attended a short course on pig farming in Australia but is primarily self-taught, relying on books, podcasts and YouTube. “Pig farming was something that I had become interested in when I realised how horrific the pig farming industry had become,” he said. “Not only did free range pig farming give me the chance to make a difference in a world that seemed to care less and less about animal husbandry but also it met with my business acumen requirements
as an industry with greater demand than supply.” Woody’s Farm (named after the family dog) is located at the base of the Tararua Range in Horowhenua – an hour from Wellington and 45 minutes from Palmerston North. In 2017 Woody’s Farm opened its own butchery and factory in Levin, just a ten-minute drive from the farm. Part of the appeal of Woody’s is the story behind the product, which is becoming increasingly important as consumers become more aware of what they’re eating. “It’s important for the consumer
to be interested in our philosophy,” explained Todd. “We want consumers to really understand what free range is and not just accept it when they are told meat is free range. In New Zealand only one percent of pig farming is free range so if the supplier can’t tell you the name of the farm, then without a doubt it is not free range.” Additionally, ‘free range’ products from outside New Zealand (particularly imported from Denmark) is actually ‘free farmed’, which can be misleading for consumers. “All we ask is that retailers only promote the truth,” he said. “It’s not acceptable to have a big sign saying ‘Free Range’ when half the products
are free farmed or intensive. We understand that free-range farms in New Zealand can’t supply the full demand for the product and consumers can’t always afford the price of freerange, but the choices should be clear.” The breed of pig is essential in maintaining free range. Pigs that are going to be outside all year round need to be capable of dealing with the weather. “Heritage breed pigs are closer in genetics to the original breeds of pigs and as such have traits more suitable for free-ranging,” explained Todd. “In particular our breeds, Large Black and Berkshire, are black and as such are less susceptible to sunburn and any related diseases.” However,
these breeds are much slower to grow, and fat and muscle levels can be hard to maintain. A crucial part of the Woody’s story is provenance, one which appeals to consumers countrywide. “We are all about transparency and provenance of the meat we produce and sell. We believe that you should know the farm from which your meat comes if you really care about what you are eating. Animals need to live a pleasant, healthy life in order for the product to be healthy.” Woody’s products are currently stocked in Farro Fresh and Moore Wilson’s, with more to follow soon. Woody’s products are also found in
restaurants all over the country such as Orphans Kitchen and Noble Rot Wine Bar. Todd is always looking at expansion – the recently opened butchery and factory is a testament to that. The increased capability which comes with the factory means that Woody’s now offers a full range of charcuterie and salami. “We are also working on various new sausage flavours, some of which are being made exclusively for various customers,” he said. “Later this year we will start to bring in other meats from our farm and sister farms such as goat and beef. We’re all about experimenting and love to try new things.” n
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behindthebusiness
From equipment to technology, warehousing to uniforms, waste management to fit out, in this permanent feature in SupermarketNews we take an up and close look at behind the business. A business must be able to adapt to market trends and quickly relate to
their customers’ changing needs, from manufacturing to supermarkets, convenience to oil channel we will be looking at all the elements it takes to drive a business, the agility, services and products needed to not only survive but thrive.
STURDY, STRETCHY, AND SUSTAINABLE
distribution centres, servicing over 10,000 stores. At the centres, they found that Doxa film reduced their plastic usage by nearly 45 percent, saving approximately 990 tonnes plastic per year more than their previous supplier. Reduced plastic wastage already made a positive impact on the environment, but furthermore, all the stretch film materials are fully recyclable. All the wasted and rejected materials are melted down by Doxa and recycled back into production of the film. A 1000m roll with 5mu weighs less than 2.5kg, making it very light to handle and reduce fatigue and work-related injuries. The reinforced edges and corners provide additional force to the load which guarantees its stability. At Edeka, they found that Doxa film used 50 percent less material in stabilising the pallets, thanks to the film reinforced edges technology. The core functions of Doxa film fit accordingly with Premier Packaging’s philosophy, so the partnership was a natural pairing. Premier Packaging consistently evaluates and improves its productivity by actively involving environmental and sustainability policies and practices. They specialise in importing, manufacturing, and distributing pallet wrap, bundle wrap, pallet covers, packaging materials such as strapping tape, builders film, pallet wrap machines, strapping machines, strapping tools, tape machines, carry bags, bin liners, a range of safety knives, timber wraps and much more. Premier Packaging is the sole distributor for Doxa films in Australasia. The films are the perfect solution to make sure pallets are secured efficiently and effectively. With the reliable, flexible and sturdy Doxa film, suppliers can rest assured their product will meet specifications and enter supermarkets without any unneeded hassle. For more information on Premier Packaging call 0800 773 643 or visit www. premierpackaging.co.nz n
At some supermarkets, pallets are required to be wrapped in plastic stretch wrap to ensure that they are stable and safe for workers on-site. As a supplier, there is not much worse than pallets of your product arriving at a warehouse, only to be rejected because it is wrapped improperly or has an overhang and doesn’t meet the store’s specifications. To guarantee a smooth path through the supply chain it is necessary to securely wrap pallets with strong robust plastic, as the contents can weigh up to 1000kg and you need to know the plastic will not tear or give way. Premier Packaging is an industry-leading New Zealand owned and operated family-business, who specialises in flexible plastic products. The core strength of their business lies with quality and reliable suppliers, They are the exclusive supplier of a new pallet wrap film, Doxa, sourced directly from Sweden. The Doxa films are made from a unique blend of materials which provide great strength and stretchability, allowing the film to be stretched up to 345 percent. The flexibility means much fewer materials are required to wrap the same number of pallets. Because less plastic is wasted, Doxa is environmentally-friendly. The benefits of Doxa aren’t just environmental. Being so stretchy and flexible, Doxa film can save as much as 30 percent on wrapping expenses over conventional films used currently in most industries. Made using a variable gauge, the thickness or micron of the film on the edges is much thicker than it is in the middle of the roll. This means the film can comfortably be placed over corners of pallets with no risk of breaking or tearing. The Swedish film is used widely in supermarkets throughout Europe, notably in the German supermarket chain, Edeka. Throughout Germany, Edeka has 28
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China has put the hard word on New Zealand saying “the honeymoon is over and you have one year”. This puts communities, councils and collectors in a bit of a pickle. Now described as a crisis, this situation has the potential to derail 25 years of growing public engagement with domestic recycling. But what can the retail sector do to contribute to a dramatic recovery? The answer could lie in making recyclability in the New Zealand context a requirement for packaging used by the suppliers you choose, which in turn will eventually change the behaviours of brand owners. This could result in more pack types actually being recycling within New Zealand. When the supply side is sorted out, reprocessors will invest and everyone will look back on the year with affection towards the Chinese people who made us act responsibly. This sea-change will also mean businesses like Pioneer Group, which has spent a decade building its technical capability in the recovered material sector, will have a strong set of buyers for its recycling technologies. Pioneer Group specialise in equipment for efficient collection and volume reduction of most waste streams supplying everything from small office recycling bins through to large industrial processing equipment. It also has a team of engineers for the design and build of processing equipment. Its team would welcome the opportunity to visit your site to discuss your current waste needs. For more information contact Matthew Strachan on 0508 474 66 337 n
CASH: A SUNSET INDUSTRY?
It’s an interesting question – with Sweden leading the world to becoming a cashless society, there was a view that this could be the turning point and the end of cash as a payment method. Twelve months on there is an element of scepticism, as other countries fail to follow suit at the same pace. With the exception of India and China, who have seen a decline of cash in circulation over the last twelve months mainly due to local Reserve Bank policy changes, most other developed countries are seeing a steady increase in cash year on year. The introduction and growth of various non-cash payment methods such as plastic cards, phone apps and online shopping have certainly been a significant contributor to the overall growth in total numbers of transactions. There is no question that cash has not kept pace as a percentage of overall transactions; however, it is still a very important part of the retail industry. To put this into perspective, cash held in New Zealand has more than trebled in the last 20 years. The Reserve Bank’s own statistics of ‘bank notes in the hands of the public’ show the value of cash held by the public has risen from around $1.64 billion in 1998 to just over $5.2 billion this year. Year on year the increase of
Glory, being a leading manufacturer of new technologies in Cash Recycling, is constantly evolving its CASHINFINITY™ range of retail cash recycling solutions to improve and increase staff productivity, reduce the risk of cash shrinkage and provide real time reporting.
Compostable Checkout Bag
cash in circulation is growing between 7-9 percent. In short, cash in circulation is increasing, which directly flows through from households into all retail business sectors. The way cash is managed has become more important. The introduction of Cash Recycling technology into the retail sector almost a decade ago revolutionised the way cash was handled and processed. This partially masked the sheer increases in volumes, with improved accuracies, efficiencies and more recently focus on security of cash. Glory, being a leading manufacturer of new technologies in Cash Recycling, is constantly evolving its CASHINFINITY™ range of retail cash recycling solutions to improve and increase staff productivity, reduce the risk of cash shrinkage and provide real time reporting. Time is money in the demanding retail sectors and operational efficiency reduces labour and maximises cash inventory. This results in staff focusing on higher value activities that improve the customer experience and helps drive growth for a business. You may have seen one, you may have used one, but do you have one? To learn more about the Cash Recyclers, please connect with Glory NZ today on 0800 172 342, email sales@nz.glory-global.com or visit the website www.glory-global.com. n
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behindthebusiness UNDERSTANDING ONLINE GROCERY Smart packaging technologies based on unique digital codes will take both online and offline grocery in exciting new directions during the next few years, according to the Tetra Pak Index 2018. The Tetra Pak Index 2018 highlighted four key trends shaping the growth of online grocery that included convenience, sustainability, personalisation and uniqueness, and technology and performance. “The rise of online grocery is a great opportunity for food and beverage brands, and packaging plays a key role in supporting their success,” said Alexandre Carvalho, Director Global Marketing Services at Tetra Pak. “In particular, smart packaging helps drive greater transparency and efficiency in the supply chain, up and downstream, while also enabling a direct, interactive relationship with the consumer. We believe this rapidly developing technology, tried and tested by us since 2016 and now being deployed in Europe can help our customers explore new avenues, driving growth in the years ahead.”
Here are twelve top insights to help understand online grocery.
Growth and Disruption
Fast-growing online grocery is not only a key channel in its own right, it’s a major disruptor of other channels too. Offline and online are merging to create both a better customer experience and better efficiency for the entire supply chain.
Make it easy Convenience is the main driver as consumers expect an ‘omnichannel’ experience that’s fast, easy and seamless. Brands that win will provide assistance in the moments that matter: during inspiration and discovery, planning and shopping. Assistance is the new battleground for growth.
Mobile first The omnichannel device of choice, brands and e-retailers alike need to ensure mobile is central to their offering. If it’s too complex for mobile, it’s too complex. As online, mobile will become increasingly key in stores, providing extra information, personal recommendations and offers, and automated cashless checkout.
Study China
For insights into the future of omnichannel, look to China, which is leading the world in disruptive innovation in grocery. China is moving much faster than the West because the Western retail model is built on legacy systems. China does not have the legacy of malls and big-box stores. It has no traditional retail model to defend.
Little and often Online grocery shopping today is still largely for stocking up. Expect that to change as delivery becomes faster, prompting the shift to convenience shopping – little and often – that is such a major part of physical retail. As basket sizes reduce, pressure on margins will increase for all players.
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Data is power
Personalisation is key both to communicating with consumers and customising the shopping experience. This is contributing to a shift in power from brands to e-retailers, who possess the most personal data and can therefore ‘own’ the consumer relationship – while developing their private label offering.
Going Direct Some brands are reacting to online challenges and opportunities by embracing a direct-to-consumer model – as many as 80 percent of CPG companies are predicted to try this route by 2025. Personalisation of products and packaging will be key differentiators.
Be nimble As products become more personal and niche, brands will need to become nimbler, formulating and producing in smaller batches to meet consumers’ changing needs.
Packaging is key An overwhelming majority of consumers say packaging can have a positive impact – or ruin an otherwise positive purchase experience. Its main use is seen to be preservation and protection, but environmental concerns are growing. Secondary packaging and plastics are already issues, and recyclability is increasingly important everywhere.
Cutting costs & carbon Lightweight, logistically efficient carton packaging has a valuable role to play, both in reducing cost and carbon footprint, and this is being used as a differentiator by some brands and e-retailers. E-retailers report that space efficient packaging can reduce transport volume by 30 percent to 50 percent. It also appeals to urban consumers in small homes with limited storage.
Invest to perform Supply chains are being transformed by a raft of technologies. Traditional retailers need to invest to stay competitive. The key to success in e-commerce is winning in logistics and supply chain.
Smart opportunities Smart packaging has a key role to play, both in the digital supply chain and the consumer experience, creating an interactive one-to-one channel with individual consumers, providing opportunities for communication, marketing and data capture alike. n SUPPLIED/TetraPak
CLEAN THE HOUSE!
The team at 3M are gearing up for its second biggest sales week of the year. Alongside the Easter long weekend, Christmas is the biggest sales week for cleaning tools during the year as New Zealanders strive to make sure their homes are clean and tidy for visitors. Consumers desire to have a clean home for visitors at special times of the year drives them to purchase more cleaning products during Christmas than any other week of the year. Promotions should run early in the season to drive awareness of cleaning brands and entice shoppers, whilst selling at standard shelf prices later in the season to capitalise on last-minute shoppers when demand is at its peak and time poor shoppers are willing to pay more. Stock availability and accessibility are key to drive sales at the time of year where consumers have the most pride in their home and how they present it. Shoppers are also willing to ‘trade up’ to the best brands and highest performing products as they ‘stress to impress’ with products to get the job done fast. The key drivers of usage of Cleaning Tools in the home are antibacterial “make my house germ free”, durable “lasts through the job” and performance “gets the job done quickly so I can spend my time with family and friends”. Scotch -Brite brand delivers innovative products designed to make cleaning the home easy and fast. n
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behindthebusiness
CONFUSION WITH COMPOSTABLE The Public Place Recycling Scheme has welcomed the Environment Commissioner’s release of an online resource to help consumers better understand how to dispose of biodegradable and compostable plastics. “We’re pleased that the Environment Commissioner recognises the confusion surrounding compostable bags and packaging and has investigated the situation and what needs to happen,” said Lyn Mayes, manager of The Public Place Recycling Scheme.
“Mr Upton is correct in saying that people can’t just put most products onto their home compost heaps or into their recycling bins. We need to have an NZ standard which identifies where and how they can be composted as well as develop the infrastructure to process them.” The Packaging Forum has established an independent technical working group (Compostable Packaging Standard Adoption Working Group (CPSA-WG)) comprising composters,
manufacturers, waste industry, central and local government and research institutions to assess existing international standards and to recommend an NZ standard. The CPSA-WG will identify whether the New Zealand composting industry and other stakeholder requirements can be met by one of the existing international standards such as the wellknown European EN13432 standard or the Australian AS4736 standard. It has agreed that the scope for this work is – any compostable packaging item which is likely to contain food (including dry goods packaging) or other nutrients beneficial to compost (e.g. horticultural items). This includes film carrier bags on the understanding they should have a second life as containers for organic waste (e.g. in kerbside collection). Other in-scope examples could be compostable food insulation, expanded PLA where it contained food or other nutrients. “We are talking to Standards New Zealand so that they are kept informed about our industry-led work. The next phase will be to conduct product testing at compost facilities in New Zealand. “We are primarily looking at commercial composting solutions, however, home composting is another
We need to have an NZ standard which identifies where and how they can be composted as well as develop the infrastructure to process them. challenge entirely with the diversity of home composting systems already available in some places,” said Mayes. If a standard is to be adopted, it would enable identification of compostable packaging that meets clear guidelines agreed with by the New Zealand composting industry. Industry and government would then be able to assess the development of collection systems and investment into comprehensive infrastructure to process compostable packaging. n
DATA MANAGEMENT ACROSS YOUR SUPPLY CHAIN Cardinal’s data management and logistics planning positions is enabling us to work with our clients to manage the complexities of their operations and needs. Cardinal specialises in the distribution of grocery and FMCG products directly to grocery and other outlet stores throughout New Zealand. Our clients play a huge role in the food supply chain in New Zealand and our Customer Service Promise is to get it right first time.
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July 2018
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A Natural
Partnership
As two nations with a long history of food production, Japan and New Zealand are remarkably similar. The two island nations of the Pacific are of similar size, environment and climate with agriculture and fisheries playing a significant role in the economy of both. However Japan’s intensive industry, commitment to technological advancement and population thirty times that of New Zealand means that food production in Japan has developed differently than in New Zealand. New Zealand and Japan have strong political ties and a shared interest in the stability, growth and development of the Asia-Pacific region. Links between the two countries go back over 100 years, and official trade relations have been ongoing for almost 70. New Zealand and Japan worked
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together with ten other countries in the Asia-Pacific region to negotiate the Trans-Pacific Partnership Agreement, and are both included in the Regional Comprehensive Economic Partnership negotiations. While economic relations between the two have largely relied on New Zealand exporting dairy and other raw
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materials to Japan and Japan exporting cars and machinery to New Zealand, Japanese Prime Minister Shinzo Abe has expressed a desire for Japan to divest its exports and move further into gourmet food and has directed his government to take action. “Italy uses its food culture to drive food exports, and France is doing the same thing with wine,” said Katsunori Nakazawa, head of the export promotion division at the Japanese Ministry of Agriculture, Forestry and Fisheries. “I want this for Japanese food as well. If our farmers don’t sell abroad, our agricultural industry won’t grow.” Abe wants to increase exports by a third to 1 trillion yen (NZD$14.25 million) within the next three years, and trade shows like “JAPAN’S FOOD” EXPORT FAIR have been established in pursuit of this aim. The
first edition of “JAPAN’S FOOD” EXPORT FAIR produced JPY 13.1 billion in business transactions from an estimated 18,000 discussions – over a third of the value of Japan’s yearly exports to New Zealand, over three days. “JAPAN’S FOOD” EXPORT FAIR will showcase the best exhibiting agricultural products, meat, seafood, confectionery, alcoholic and nonalcoholic beverages, seasonings, and processed food products that Japan has to offer. In 2018, the show will double the exhibitor number to 600 exhibitors and attract 15,000 international visitors from 80 countries and regions. For those who are interested in importing Japanese food, the show is the best platform to visit. Visitor pre-registration is now available at www.jpfood.jp/en/inv/. n
FGC CONFERENCE 2018
Our annual members’ conference is one event where that challenge is greatest, being over three days and typically attended by more than 300 delegates. Last year we enjoyed the best of Wellington, and this year it will be Brisbane, from 7-9 November. The conference is a great opportunity for New Zealand grocery manufacturers and marketers to hear what’s on the retailers’ agenda, and to get a good update on a wide range of issues facing our fast-moving and, these days, our fastchanging consumer products industry. We always put a lot of time into the retailer side of things, and this year we’re delighted that Scott Davidson, the General Manager of Buying and Merchandise for Countdown, will be attending along with some of his team. By the time of the conference, Scott will have had nearly a year in his current role, so he’ll no doubt have some excellent insights and thoughts
on his time in the New Zealand market. His address is sure to be one of the highlights. Both of Foodstuffs’ Chief Executives, Steve Anderson and Chris Quin, (joined by key leaders from their teams) will again be presenting their take on how their businesses are travelling and where they see shopping trends. They usually also spend a lot of time mingling with delegates, and that’s always appreciated. Another annual highlight will be the presentation of the Nielsen Barometer – the results from the supplier survey on how the industry and retailers are tracking. This is an exclusive briefing for FGC members and typically provides some fascinating insights on performance and shopper trends. The retailing angle will be completed by Vicki Herring, the Manager of Consumer and Shopper Insights at retail marketing specialists IRI, who will present a major piece of analysis by her company. Many of our members sell into the Australian market and have a close affinity with their industry, so an overview by Tanya Barden, the Chief Executive of the Australian Food and Grocery Council, on how the Grocery Code is tracking and latest developments in that market will be particularly informative. Fiona Kingsford, the CEO of training organisation Competenz, will give a presentation on the future of
work in our rapidly changing world, while Molly Harris Olsen, the CEO of Fairtrade Australia New Zealand, will be chairing a workshop that concentrates on maintaining supply chain integrity. FGC’s own Talent and Diversity Working Group will be running a workshop, too. We will also have political commentator Richard Harman along to share his read on how the coalition Government is tracking and what FMCG companies need to be aware of in terms of potential legislative potholes. There are loads of other presentations and workshops which we will be announcing soon, but if you would like to see the full programme, you’re welcome to contact the FGC office. Above all, the conference is a great forum for food and grocery manufacturers and marketers to catch up with one another and talk about the challenges and opportunities in the local market, as well as globally. This year we’re thankful to have Pavé Brands as a Gold Sponsor and Synergy Consumer as a Bronze sponsor. We still have plenty of sponsorship opportunities, so please contact me if you or your company would like to participate. The conference is a great way to reach 300-plus food and grocery supplier leaders. n
Being a farm boy from the heart of the Rangitikei, George Anderson always thought he’d be a vet, or at least be involved in the agricultural industry. That was the plan when he started a Bachelor of Business Studies at Massey University, but as university progressed he found himself moving away from the agricultural side and more to the commercial side of business. He graduated in 2011, having majored in Human Resource Management and Entrepreneurship and Small Business.
“I found my strengths and interests lay in dealing with people, which naturally led me to human resources,” he told SupermarketNews. That being said, his introduction to the world of HR was something of a fluke. After university, faced with the uncertainty of what to do in the future, Anderson secured a graduate role in HR at Restaurant Brands, assisting across the team and dealing with iconic brands such as KFC, Starbucks and Pizza Hut. After the programme finished, he began working with Mitre 10. “It was my first bit of exposure to the co-op world,” he explained. “It was based in the Glenfield Mitre 10 Mega, and I was also supporting two other stores in Auckland.” After nearly three years at Mitre 10 he worked at Chorus NZ, wanting to move away from the retail world. However, an offer from Foodstuffs piqued his interest. “I was really missing the innovative and entrepreneurial flair that a co-op has to offer.” As for Four Square and Liquorland, Anderson helps owners of these stores drive their culture and be “great community employers.” His experience growing up in Taihape shapes his approach to his job. “Coming from a small town I have seen first-hand the way Four Squares make a difference in communities and how much small rural towns rely on Four Squares,” he said. “This makes it an awesome opportunity to be a part in ensuring
that our stores are great places to work and helping the owner-operators of stores to become leaders in their community.” Anderson’s dedication to Four Square is more than just an emotional bond – the keen rugby fan is fuelled by competitiveness. He wants to get Four Square to the point at which the brand is recognised not just in New Zealand but internationally as a preferred retail employer. He wants to take on the “big dogs” of the industry, including Four Square’s bigger Foodstuffs brothers. “I want our employees to feel that the skills and experiences that they gain in our stores are recognised as not only credible but sought after.” HR can take up a lot of time, including difficult compliance tasks that can be difficult for owneroperators to navigate without experience or expertise. In his role, Anderson helps them grow in confidence in this area so they can spend more time on the rewarding side of staff management, such as culture and engagement. Anderson has found the biggest challenge to be the promotion of grocery careers as more than just a job or a gap-filler, particularly away from the main centres. “There are some really structured development opportunities that can lead to great technical skills such as management, bakery and butchery or even store ownership, all of which are hard to recruit and attract top talent to our rural areas.” n
The Food and Grocery Council represents a diverse range of New Zealand’s best food and grocery producers, from the huge to the tiny, and as such it can be a challenge finding interesting and informative opportunities they will all benefit from. Katherine Rich
Chief Executive NZ Food & Grocery Council
GEORGE ANDERSON
HR BUSINESS PARTNER, FOUR SQUARE & LIQUORLAND
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COCA-COLA GOES CLEAR
Coca-Cola has launched a clear, zero-calorie beverage in Japan. The concept took over 50 samples before it went to market and was developed at the US headquarters. The beverage is clear, losing its caramel ingredient that is used to achieve its iconic appearance however the flavours are all still there, with the added refreshing splash of lemon. It is exclusive to the Japan market.
FLAVOURED GHEE
Ghee is a premium cooking oil that is ideal for high heat. It is also shelf stable, lactose free, and casein free, making it a better choice for those who are lactose intolerant or have digestive issues. Ghee offers wonderful health benefits: high in vitamins A & D, promotes healthy digestion, and is extremely nourishing and healing for all tissues of the body. Farmtrue Ghee is certified organic and all of its products are artisanal, slow cooked and hand poured. The brand has come up with a flavoured ghee range that includes, Vanilla Maple Chai, Traditional and Garlic Scape.
ENDLESS POSSIBILITIES
WINE GRAPE INFUSED
Patak’s new range of portion-sized Paste Pots allows households to enjoy delicious, Indian-inspired cuisine at home. Australia’s number one Indian food brand Patak’s is launching Paste Pots, helping millions of amateur to serious chefs create closest-to-authentic Indian dishes from home. Inspired by 60-year-old family recipes, all paste products include at least eight spices which are ground, perfectly blended and preserved in oil to retain flavour. Patak’s Paste Pots pair the endless possibilities of Indian cuisine with convenience and practicality. A single pot can create a meal for two without any fuss or wastage, so preparing a feast with Indian flavours is easier than ever. The range includes Patak’s Korma, Tikka Masala and Madras Paste Pots.
O.Vine, a spring water with functional ingredients from wine grapes skin infused water is the culmination of a concerted strategy of attaining full sustainability from vineyards to table, reflecting the vision and journey of CEO Anat Levi. This pure spring water infused with nutraceutical compounds derived from wine grape skins and seeds, creating a new concept of refreshment drink based on two oldest beverages – water and wine. During wine processing, 25 percent of the wine grapes, mostly seeds and skins, becomes waste. The O.Vine line of non-alcoholic premium beverages is the company’s first launch in this effort to reduce waste.
IS THAT TUNA? Ocean Hugger Foods has introduced the world’s first plant-based alternative to raw tuna. The company offers healthy, delicious and sustainable plant-based alternatives to your favourite seafood dishes. Created by one of America’s top chefs, Certified Master Chef James Corwell. Ahimi is a healthy, safe, raw Ahi without the tuna. Made from tomatoes and a few simple ingredients, this clean cuisine offers all the taste without harming the oceans. The texture and flavour of the tomato are transformed through a special technique. Ahimi was designed to be a delicious alternative to ahi tuna with a savoury, meaty taste. It’s made from tomato, but its appearance and texture are indistinguishable from raw tuna.
UNIQUE TONIC FLAVOURS
SMARTER NOT SWEETER
Following growing consumer demand for unique flavour combinations in tonic water, Fentimans has launched two new mixer variants – Pink Rhubarb and Oriental Yuzu. Its Rhubarb Tonic is said to combine the tangy taste of rhubarb with candied undertones, reminiscent of vintage sweets. “Since the launch of our pioneering pink grapefruit tonic water, we are seeing an increasing number of consumers experimenting with different flavour combinations. The rollout of rhubarb and yuzu flavoured tonic provides this growing audience with increased flavour options that can make every day classic spirits taste even better.”
Smarter, not sweeter. That’s the philosophy behind YQ by Yoplait, a new yoghurt made with ultra-filtered milk that delivers big on protein with an intentionally less sweet taste. YQ by Yoplait Plain brings the yoghurt category a new 1-gram-sugar-per-serving option, while packing 17 grams of protein in each serving. The flavour varieties deliver nine grams of sugar – 40 percent less than the leading Greek lowfat yoghurt – and are lightly sweetened with just the right amount of cane sugar, real fruit and natural flavours. Available in Coconut, Peach, Mango, Lime, Strawberry, Blueberry and Vanilla.
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WORLD-FIRST
German start-up Cooleo has launched the world’s first double-layered wine bottle in a bid to provide a modern and functional bottle with longer drinking pleasure. The crisp, clean lines of crystal clear Borosilicate glass presents the wine’s true colour, and even though it’s light in weight, the double layer keeps wine refreshingly chilled. The bottle is handmade by artisan glassblowers. Its elegant, multi-layered curves not only provide winemakers with the perfect vessel for their wine, but it also gives artists a unique place to showcase their art on both the inner or outer layers of the bottle. The natural cooling double layer means you don’t need the fuss of ice buckets or repeat trips to the fridge.
PREMIUM YOGHURT RANGE
General Mills has launched Liberté Origins, a new yoghurt range in the UK following the evolution of the premium yoghurt category. The French-style yoghurt are placed on top of compotes that are made with real fruit. Available in three flavours – Strawberry, Vanilla and Apricot and comes in a pack of two jars.
GOOD IS BACK
What if you could recreate your favourite chocolate snacks without the bad stuff? Well now two brothers have with their new brand Unreal. A thousand or so recipes later they think they have cracked the code to making some of the best tasting chocolate snacks ever. Their healthy take on popular favourites are non-gmo verified, use fair trade, sustainable, organic ingredients, contain nothing artificial, are certified gluten free and vegan with an unreal taste! The product range includes dark chocolate peanut butter cups, dark chocolate almond butter cups, crispy dark chocolate peanut butter cups, milk chocolate gems, dark chocolate peanut gems, and dark chocolate crispy quinoa gems.
CAULI-REVOLUTION
SURPRISE!
Cauliflower delivers some heavy-hitting nutrients. It’s full of antioxidants like vitamin C and manganese, and even has phytonutrients, vitamin K, and omega-3. In other words, cauliflower brings a lot to the table, which is why this brand called itself Caulipower. Alongside its pizza bases, and pizza bases with toppings, it has launched two new cauliflower-based baking mixes. The Cauliflower-Based Baking Mix is made with cauliflower first, making it a third lower in fat and lower in calories than the average paleo mixes. It replaces flour in any recipe cup-for-cup. Baking just became a whole lot easier. There are two varieties available – a paleo version and an original version.
Everybody knows that we don’t eat enough veggies, and for one mum, this was especially true in her family for whom ice cream was a primary food group. It wasn’t long before Peekaboo Ice Cream was launched. Peekaboo Ice Cream is indulgent ice cream with hidden veggies that you can’t see or taste but they are just as powerful in delivering their health benefits. Eating your veggies never tasted so good! Its chocolate ice cream is rich and totally indulgent using the finest cocoa and pure, sweet cream to create a decadent, velvety dark chocolate ice cream (with hidden cauliflower). The Strawberry flavour includes secret carrots that add a unique balance of sweet and fruity undertones which enhance the overall flavour of its luscious strawberry ice cream. Its Mint Chip with Hidden Spinach has added rich chocolatey shavings. Rich and full-flavoured its Vanilla with Hidden Zucchini variant offers a perfect balance of pure, sweet cream and Madagascar vanilla. Lastly Cotton Candy with Hidden Beets is a take on a favourite carnival confection that is fun and delicious.
GOING UNDERCOVER Undercover Quinoa was born out of founder Diana’s love for chocolate and healthy snacks. The Undercover Quinoa range of light, crispy and crunchy quinoa snacks are naturally gluten-free, packed with protein, fibre and nutrients, are healthy and use simple ingredients. They are all natural, non-gmo, and use fair-trade chocolate. The range includes Milk Chocolate, Dark Chocolate + Blueberries, Dark Chocolate + Sea Salt, Dark Chocolate + Seeds, and Milk Chocolate + Currants.
FLOUR FROM COFFEE Each year the billions of coffee beans that eventually make their way into coffees of the world are harvested by milling and extracting them from the coffee plant. The surrounding fruit, is discarded. It often gets dumped into rivers or left to rot in heaps. So, Coffee Flour invented something better to do with it. For farmers and families in coffee growing countries, it creates sustainable jobs and a new revenue source for some of the poorest areas of the world. For the environment, it will remove botanical waste, reducing methane gas emissions and minimising pollution of streams and soil. And for the people, it will add a nutritious and distinctly flavourful ingredient to the global menu. The company pioneered a process that converts this coffee by-product into a nutrient dense new super-ingredient called Coffee Flour. It is a versatile ingredient that can be used in cooking and baking, beverages, pastas, sauces and more.
GO WITH YOUR GUT GoLive is on a mission to improve human health by addressing the foundation of the body’s digestive, metabolic and immune functions – the gut. It develops and formulates the most effective blends of probiotics, prebiotics, amino acids, vitamins, electrolytes and other ingredients, available in any form. GoLive products contain only the highest-quality ingredients. Researched, developed and formulated by microbiologists and registered dietitians. GoLive ready-to-drink and ready-to-mix products are the most efficacious probiotic and prebiotic blends available. There are six variants in its Ready-To-Drink range and seven in the Ready-To-Mix range. Flavours include Blu-Lemon, Dragonade, Gogo-Berry, Paradise, Spa, Superfruit, and a Kids BerryLicious.
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DECODING THE PRODUCT PAGE: Why Walmart’s product pages drive 14 percent higher sales than its competition’s
With online shopping booming, significant growth opportunities are opening up for retailers and brands. To take advantage of this potential, companies need to invest in a clean and streamlined user experience, but some webpage elements are more important than others. It was found that product pages are one of the key factors that can make or break your online sales. To unveil the basic elements that drive conversion on these pages, our team conducted an eye tracking study analyzing the leading retailers’ product pages – Walmart, Amazon and Target. The research showed that shoppers are 14 percent more likely to buy the product from Walmart than from the other two retailers after browsing their product pages. Our goal was to discover the elements that correlate with purchase intent and offer recommendations for both retailers and their client companies. We conducted our study in partnership with the panel company Lightspeed. The recruited 300 online shoppers were asked to browse two product pages of their preferred online grocery shop while the EyeSee team tracked their eye gaze. We chose popular brands within two large categories: Colgate (toothpaste) and Tide (laundry detergent). Afterwards, the online shoppers were asked to choose products they would prefer to buy.
WHY IS THE PRODUCT PAGE SO IMPORTANT?
You may think of a product page as an equivalent of picking up a product with one’s hands and mulling over the purchase. Many questions emerge in this thought process, but most of these activities take place in the subconscious part of the mind of which we are seldom aware. By changing features of the product page, we can influence both conscious and subconscious aspects of the decision-making process.
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WALMART’S 14% SALES CONVERSION ADVANTAGE
More than half of the shoppers (i.e. 53 percent) who land on the Walmart product page also end up purchasing the product, while only 47 percent of Amazon- and 46 percent of Target-based shoppers make the purchase after browsing the product page. What drives this 14 percent advantage? Although all three pages have essential elements
that help to drive successful online sales, Walmart’s product page has slight advantages: • Larger product image; • Visible and user-friendly “add to cart” section; • Visible and user-friendly size and quantity options.
WALMART SHOPPERS SPENT UP TO 70 PERCENT MORE TIME BROWSING PRODUCT IMAGES
Eye-tracking heatmaps: red signifies higher attention, green lower attention.
eyesee Eye tracking enabled us to measure the amount of time online shoppers spent gazing the different elements of the product pages. At Walmart, they paid much more attention to the product image: 23 percent out of total time spent per page, with much lower rates on Amazon and Target pages (i.e. 14 percent and 17 percent respectively). Given its larger size, design and proximity to the product image, the “add to cart” section yielded a greater number of views as well. On top of that, Walmart’s “add to cart” is considered to be much more relevant and useful for purchase decision than the same section on other websites (30 percent better than Amazon and four times better than Target).
KEY PERFORMANCE INDICATOR:
Time spent looking at the image, not the page
While the time people spend looking at the product image is positively related to purchase intent, this is not the case with the time spent on the page as a whole. Amazon holds shoppers on the page 50 percent longer compared to Walmart and Target, but this alone does not translate into purchase intent. Exploring the product image for a longer period of time shows positive emotional engagement – in this case, consumers presumably like what they see and are interested in learning more. However, spending too much time on the product page might also indicate confusion. It is possible that the consumers could not find what they were looking for or that the page was not entirely user-friendly. Shoppers might find this frustrating and give up on further browsing of that particular site.
(PRODUCT) IMAGE IS WORTH A THOUSAND WORDS
Product picture is the most attention-grabbing element of the product page. It is the first-to-be-seen and the-longest-looked-at element, taking in around 20 percent of the total time dedicated to the product page. This section is one of two areas considered the most useful and relevant for the purchase decision. A shopper can obtain a lot of information about the product just by looking at the image; he/she does not need to read the description to make a purchase decision. Also, since people base their purchase decisions on the package design while shopping in the store, it makes sense that they’re influenced by the product image in an online environment. Plus, images attract more attention in general and communicate more efficiently than words.
OPTIMIZING THE PRODUCT PAGE
Optimization of the product page should be focused on the most important areas of the page.
According to our data, these are (1) the product image and (2) “add to cart” section, followed by product name and suggested products. People devote most of their attention to these areas and consider them useful and relevant for their purchase decision. Size matters. To make the most of the online “moment of truth,” product image should be optimally sized, at a high resolution and well positioned. Multiple-angle product images are an added bonus. On average, respondents spend more time looking at larger product images, as they attract more attention, which is positively correlated with the purchase intent. On the tested pages, the product image area with Walmart is twice as big as the same area with Amazon and 1.5 times bigger than with Target. Another example of good practice demonstrated by Amazon is boosting the product image area with hero shots (visually presented product benefits). This “detail” has turned out to be very useful and relevant for the purchase decision. Tweaking the “Add to cart” section. It’s vital for this section to be clear and user-friendly. Walmart’s design takes the prize, being large, with sizeable buttons and print, and positioned close to the product image. The information offered is clear, with important details highlighted (price, discount, shipping etc) and excessive ones omitted. This design attracted the most attention compared to other sites, as all these factors contribute to better visibility. On average, 92 percent of respondents noticed this section on the Walmart webpage, 86 percent on the Amazon page and 34 percent on the Target product page. Amazon’s “add to cart” is overloaded with smallprint and is potentially missing the most relevant information – therefore, visitors don’t consider this section useful and relevant for their purchase decision (on average four times less frequently than on other websites). Target, on the other hand, has too poor an“add to cart” section, but consumers still evaluated it much better than Amazon’s crowded check-out area.
COMPLEMENTARY VS. ALTERNATIVE PRODUCTS. While Target and Walmart offer “alternative products” (i.e. variants of the SKUs within the category), Amazon uses the “complementary products” strategy that shows other categories of products that are frequently bought together. Both strategies are legitimate, but they support different goals: while the “alternative products” strategy helps shoppers decide on the exact product they want, with the aim of reducing drop-offs or selling more expensive product (upsell), the “complete-the-basket” strategy can drive direct sales (cross-sell). When it comes to boosting e-commerce revenue, it is expected for complementary products (cross-sell) to be the most effective at the checkout page. Our study shows some advantages of the cross-sell strategy at the product page as well. The complementary products
section holds 30 percent more attention than the alternative products section, which could also signify higher purchase consideration. As expected, visitors spend more time looking at new items rather than contemplating on, or second-guessing whether, their purchase was the right one. When choosing between these two strategies, companies should primarily consider customer experience, that is, offer what is appropriate at each stage of the decision-making process. Dependent on the category, these strategies can be equally useful and relevant for the purchase decision. Alternative products are perceived as more useful once they provided an opportunity for price comparison between single and multi-packs (toothpaste) while in detergent category complementary products performed better. This section should be positioned closely below the product image (above the fold) rather than below description and other information. This way it would have sufficient visibility to potentially affect purchase decisions. In summary, when optimizing the design of product pages, retailers should focus on key elements (i.e. product image, the “add to cart” section, etc.), their size and positioning. These are directly correlated to consumers’ attention spans and the time they spend on the page, which can either positively or negatively impact the level of sales. Leading shoppers through the browsing and shopping processes and providing a seamless user experience is vital for achieving consumer satisfaction and, therefore, increasing conversion rates. Mirna Djuric, Senior Research Manager, EyeSee Research Olivier Tilleuil, Founder & CEO, EyeSee Research Mina Miljkovic, former Marketing & Behavioral Science Projects Manager, EyeSee Research n