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JUNE 2021 – Volume 8 – No 5
PLUS! PLANT POWER n ALLERGY-FRIENDLY FOODS n WHAT’S HOT n NZ EVENTS n NEW ZEALAND’S LARGEST FMCG AUDIENCE
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contents JUNE 2021
UP FRONT 4
EDITOR’S NOTE
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INDUSTRY NEWS
9 WHAT’S HOT New products in store
SPECIAL FEATURES 12 ALLERGY-FRIENDLY FOODS
40
16 MEAT’S MATCH What’s trending in the vegan and vegetarian space? 22 BAKING A DIFFERENCE News from the baking aisle 24 HOT DRINKS
REGULARS 10 HEALTH & WELLNESS
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31 LEGAL ADVICE 32 MARKETING 34 FGC Getting compostability right 35 EXPORT
EVENTS 36 NZ PIE AWARDS CALL FOR ENTRIES 37 NZ FOOD AWARDS 38 FOODSTUFFS EXPO HIGHLIGHTS
11 PROFILE Restore Bone Broths
39 PROFILES On trend at Expo: Blackcurrant products
18 PLANT POWER New plant-based products
41 ASIA FRUIT LOGISTICA RESCHEDULED
19 PROFILE Bean Supreme makes convenient plant-based eating easy
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30 FMCG BUSINESS PRODUCT OF THE YEAR Another finalist revealed
20 BEST IN SEASON Fresh produce update 21 COVER STORY Tablelands’ affordable quality plant seed spreads arrive in New Zealand
GOOD BUSINESS 26 INDUSTRY NEWS AND INSIGHTS 27 PROFILE Hellers’ new Short Cuts range – a smart way to tasty 28 BASELINE Structural design made to order
41 WHAT’S ON Events for your diary 43 OUT & ABOUT Our people at work and events around the country
COVENIENCE & IMPULSE RETAILING 44 EDITOR’S NOTE 45 THE ROAD AHEAD Planning for the future of refuelling 46 IRI Summer performance update 48 COCA-COLA EUROPACIFIC PARTNERS Unlocking opportunities through P&C
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FMCG BUSINESS - JUNE 2021
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[ editorial ]
TOP TRENDS, NEW PRODUCTS & NZ EVENTS The Fresh and Grocery Expo, held at Claudelands Event Centre in Hamilton in May, was Foodstuffs’ largest in its 15-year history, involving 5000 people and more than 300 exhibitors. We were honoured to be among their invited guests and caught up with Foodstuffs South Island Chief Executive Steve Anderson at the Expo. See some of the highlights on pg 38-40 and find out what Anderson highlighted as the “superfood” of 2021. Many shoppers are increasingly looking for plant-based foods. An IRI survey revealed that health is the number one reason New Zealanders avoid or restrict meat, followed by environmental, sustainability and animal welfare concerns. We take a close look this growing trend on pg 16-21. Find out what’s fresh in season, what’s new in the Hot Drinks and Baking categories and which products are trending in allergy-friendly foods. We also bring you Health & Wellness tips on pg 10-11 and reveal another finalist for the FMCG Product of the Year Award on pg 30. Our legal experts show you how to craft a smart credit policy on pg 31 and Lew Bentley explains why it’s important for your brand to make a good first impression (see pg 32). Please join our daily conversations on Facebook, Instagram, Twitter or Linkedin, or email us to share your news – we’d love to hear from you. You can also share your favourite snaps to be in our monthly draw for a prize for your office (find out more on pg 43). Enjoy this issue,
PUBLISHED BY C&I Media (NZ) Ltd PO Box 109 342 Newmarket, Auckland 1149 MANAGING DIRECTOR Simon Grover COMMERCIAL DIRECTOR Safa de Valois safa@c-store.com.au EDITORIAL DIRECTOR James Wells james@intermedia.com.au HEAD OF CONTENT Tamara Rubanowski trubanowski@intermedianz.co.nz ph: 027 278 4761 MANAGING EDITOR – C&I NZ Deb Jackson d.jackson@c-store.com.au NATIONAL SALES MANAGER Vicky Bennett vbennett@intermedianz.co.nz ph: 021 626 115 SALES DIRECTOR Wendy Steele wsteele@intermedianz.co.nz ph: 021 300 473 ART DIRECTOR Leanne Hogbin leanne@intermedia.com.au PRODUCTION MANAGER Jacqui Cooper jacqui@intermedia.com.au PUBLISHING ASSISTANT & SUBSCRIPTION ENQUIRIES Eclypse Lee elee@intermedianz.co.nz
Tamara Rubanowski trubanowski@intermedianz.co.nz www.fmcgbusiness.co.nz
C&I Media takes its Corporate and Social Responsibilities seriously and is committed to reducing its impact on the environment. We continuously strive to improve our environmental performance and to initiate additional CSR based projects and activities. As part of our company policy we ensure that the products and services used in the manufacture of this magazine are sourced from environmentally responsible suppliers. This magazine is printed on Impress stock from Spicers Paper using FSC-MIX source pulp from responsible sources and other controlled sources. We print using BIO-inks that contain base materials from renewable resources including wood resin (rosin, colophony), vegetable oils, linseed oil and soy bean oil. This magazine is printed by ICG, an ToitŪ enviromark gold certified printer.
ISSN 2382-1663
ON THE COVER For over 30 years Tablelands have been a popular spread for Australian families – and Tablelands’ affordable quality plant seed spreads are now available in New Zealand. Find out more on pg 21.
FMCG BUSINESS IS PROUDLY ASSOCIATED WITH
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FMCG BUSINESS - JUNE 2021
FMCG Business is audited and verified by ABC. DISCLAIMER This publication is published by C&I Media (NZ) Ltd (the “Publisher”). Materials in this publication have been created by a variety of different entities and, to the extent permitted by law, the Publisher accepts no liability for materials created by others. All materials should be considered protected by New Zealand and international intellectual property laws. Unless you are authorised by law or the copyright owner to do so, you may not copy any of the materials. The mention of a product or service, person or company in this publication does not indicate the Publisher’s endorsement. The views expressed in this publication do not necessarily represent the opinion of the Publisher, its agents, company officers or employees. Any use of the information contained in this publication is at the sole risk of the person using that information. The user should make independent enquiries as to the accuracy of the information before relying on that information. All express or implied terms, conditions, warranties, statements, assurances and representations in relation to the Publisher, its publications and its services are expressly excluded. To the extent permitted by law, the Publisher will not be liable for any damages including special, exemplary, punitive or consequential damages (including but not limited to economic loss or loss of profit or revenue or loss of opportunity) or indirect loss or damage of any kind arising in contract, tort or otherwise, even if advised of the possibility of such loss of profits or damages. While we use our best endeavours to ensure accuracy of the materials we create, to the extent permitted by law, the Publisher excludes all liability for loss resulting from any inaccuracies or false or misleading statements that may appear in this publication. Copyright © 2021 - C&I Media (NZ) Ltd
[ news ]
NEW AND IMPROVED COUNTDOWN SUPERMARKET FOR WAINUIOMATA
The patience of the local Wainuiomata community has paid off, with the eagerly awaited, brand new Countdown store officially opening its doors in May. The new 3,600m2 supermarket provides an extensive fresh offering, and a new in-store pharmacy, bakery, deli and cellar, all with a focus on providing the growing community convenient options, including more than 1,500 new products. The store also has Countdown’s latest design and sustainability features such as LED lighting and transcritical refrigeration to reduce energy consumption and carbon emissions. Matt Grainger, Countdown’s General Manager Property, says: “This is a really significant milestone for the redevelopment of the Wainuiomata shopping centre, and the new Countdown has been quite a few years in the making so we’re really excited to now be able to share it with the community,” says Grainger. “When we first purchased the shopping centre in 2017, we wanted to secure a long-term future for Countdown, our team, and our customers, as well as contributing to the rejuvenation of the town centre. “Wainuiomata is a community that continues to change and grow and it’s a privilege to be a part of such a bighearted town. Our business has a long history here and has been serving the local community since 1970. The store was opened by MP for Hutt South, Ginny Andersen, and Mayor Campbell Barry, with mana whenua and food rescue partners, The Salvation Army and Kaibosh, also in attendance. Countdown has donated $5,000 to both Wainuiomata Marae and
Kokiri Marae, to mark the opening of the store and in recognition of the important role they play by providing health and social services to the community. Countdown purchased the Wainuiomata Shopping Mall with plans to redevelop the area and contribute to the long-term rejuvenation of the Wainuiomata town centre. The new Countdown supermarket is one part of this plan, and over the coming months a new car park and road will be completed, as well as retail shops that will start to take shape. Countdown Wainuiomata will be open 6am-10pm, seven days a week. The pharmacy will also operate seven days a week from 9am-8pm.
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FMCG BUSINESS - JUNE 2021
Campbell Barry, Mayor for Hutt City; Allison Baker, Countdown Wainuiomata team member and Ginny Andersen, MP for Hutt South
Short Cuts
Hellers NEW Short Cuts range means we’ve put in the hard yards so you can enjoy a tasty feed - in just minutes! Simply heat and add to your favorite meal and you’re laughing all the way to the time-saving bank.
the smart way to tasty
Serving Suggestions
[ news ]
NEW GM FOR SWISSE WELLNESS NZ H & H Group has confirmed the my job is to contemporize the business appointment of Hayes Taylor as General to bring strategic thinking and a vision to Manager of Swisse Wellness NZ. our partnerships and ensure that we are Hayes will be responsible for connecting with our consumers in a more consolidating the position of Swisse meaningful way.” within the New Zealand market, whilst Hayes is an experienced General also setting its future strategic path, Manager with significant background as it continues to pursue its mission to in Sales, Marketing and Operational inspire happiness and health around the Management spanning the depth world. Of particular focus will be the and breadth of export and FMCG expansion into new brand categories markets. Having worked internationally and retail channels. throughout North Asia, South East “I’m very excited to be joining the Asia, Latin America, Australia and New Swisse Wellness NZ team - working with Zealand, Hayes has a proven track premium quality products that connect record of delivering growth strategies the everyday person to everyday across a wide range of products and Hayes Taylor is the new General Manager of Swisse Wellness NZ. wellness. Swisse is one of those rare channels. Hayes holds an MBA from companies that is truly changing the world through wellness. I couldn’t AUT and was most recently the Business Manager at The TATUA be more honoured to be chosen to lead the business,” Hayes said. Co-operative Dairy Company Limited. “The opportunity ahead for Swisse is vast, so our success requires ‘Born’ in Australia in 1969, Swisse have been pioneers in wellness for clear focus. We will continue to transform, as we accelerate our ability to over 50 years and are available in New Zealand with a bespoke range of bring innovative products to our customers more quickly. A big part of vitamins and supplements.
[ sponsored content ]
CRAFTED BY LOCALS. SAVOURED BY EVERYONE. True to our time-honoured tradition of craftsmanship, the team at Copper Kettle have tinkered with unique ingredients and flavour combinations to take delicious to the next level. Introducing our irresistible new Artisan Series range, locally crafted by New Zealand’s number one Premium Potato Chip brand, Copper Kettle*. Available in three delectable artisan inspired flavours: Roasted Garlic Aioli, Sweet Chilli Jam with Sour Cream and Slow-Cooked Onion with Mustard Vinaigrette. Our new range of slowly batch-cooked chips are packed with the distinctive Copper Kettle chip crunch and wrapped in vibrant, eye-catching new packaging. Keep an eye out for our Copper Kettle Artisan Series advertising across TV and digital media channels from the end of May. Order yours today from Bluebird Foods. If you are a new customer you can call us on 0800 652 583. *Source: IRI Scan Data, Copper Kettle Large Pack Premium Potato Chips, Dollars, Total Grocery, MAT to 25/04/21
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FMCG BUSINESS - JUNE 2021
Kellogg’s launches NEW Nutri-Grain Vanilla Malt Shake A Kiwi breakfast icon has added a new flavour to their line-up... Introducing Nutri-Grain Vanilla Malt Shake! Combining the iconic taste of Nutri-Grain with the irresistible creaminess of vanilla; the latest cereal from Kellogg’s is sure to tempt your tastebuds. The new flavour sensation is available for a limited time from Pak’nSave and New World nationwide. www.kelloggs.co.nz/en_NZ/brands/nutri-grain.html
NEW Harraways Oat-activ® 450g Pouches New Harraways Oat-activ® 10-serve, 450g resealable pouches work with the double action of plant sterols and beta glucan (natural in oats) to reduce cholesterol absorption. Two varieties. Have one 45g breakfast serve, or as a snack through the day. Tasty recipes at: www.harraways. co.nz , or via Harraways FB/IG. Stocked at participating New Worlds. www.harraways.co.nz info@harraways.co.nz www.facebook.com/HarrawaysNZ/ www.instagram.com/harrawaysnz/?hl=en Phone: (03) 488 3073
Dogs go nuts for Mutt Butter Peanut butter is natural, tasty and good for dogs, so the team at Mutt Butter decided to make simple peanut butter treats for your dog, with no added salt or sugar. Peanuts are naturally loaded with good oils and minerals and contain 25% protein, which aids your dog’s overall health. Mutt Butter products offer a whole lot of happiness and fun for your dog to enjoy! Contact your College Hill Agency Sales Representative for orders: https://www.cha.co.nz/ info@muttbutter.co.nz www.muttbutter.co.nz @muttbutternz
The wild one for everyone!
Eat Well with Naked Kitchen this winter Naked Kitchen has come to the rescue for Kiwis looking for healthy and convenient meals as we head into winter, with the launch of its Eat Well ‘Sustain’ Peanut Satay & Kumara Bowl. The new plant-based chilled meal is packed with only premium natural ingredients and is part of the wider Eat Well range. infoNZ@lhf.net
Remedy’s latest flavour, will sweep you away to a warm summer’s day. Bursting with strawberry, blackberry and blueberry bliss, this jammy and beautifully aromatic brew is the one for everyone. Like all Remedy goodness, Remedy Kombucha Wild Berry contains no sugar, naturally, is organic and all natural. Available in supermarkets or at www.remedydrinks.com/nz
FMCG BUSINESS - JUNE 2021
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[ health & wellness ]
UN DISCUSSION IDENTIFIES PATHWAYS FOR NZ’S FOOD FUTURE A pioneering United Nations discussion Chair of Tāhuri Whenua – The ‘The Future for Fruit & Vegetable Kai National Māori Vegetable Growers Systems in Aotearoa’, has identified Collective as Co-Convenor of the several pathways for our fresh produce dialogue has been critical in developing industry towards achieving a sustainable a greater understanding of kai future for all Kiwis. sovereignty and developing solutions Hosted by United Fresh, the UN that acknowledge the principles of Te Independent Dialogue brought Tiriti o Waitangi,” he says. together for the first time experts Outcomes relating to access to from across the entire supply chain, fresh fruit and vegetables included from production to retail along with plans to create a communications tangata whenua representatives and network that deliberately includes a organisations that support vulnerable te ao Māori voice and identifies gaps communities such as food banks in distribution channels to rural and and churches. vulnerable communities. NZ's Fruit and Vegetables in Schools programme Jerry Prendergast, President of A food system that emphasises United Fresh and curator of the event, says that the recent dialogue the importance of nurturing our land and water resources was provided the industry with a valuable opportunity to include also discussed. representatives of the most disadvantaged in Aotearoa. Technological advances and labour shortages are also at the forefront “The COVID-19 lockdowns taught us important lessons about our food of concerns about securing the supply of fresh fruit and vegetables, systems. Empty supermarket shelves in some grocery categories were a sharp particularly the balance that needs to be achieved by bringing new reminder of how important it is to maintain a steady supply of talent to the industry with a high skillset to operate in a nutritious food to every New Zealander,” he says. highly technical environment. “Meeting with representatives of organisations “Training our rangatahi to work within complicated at the coalface of work with our most deprived supply chains which accurately trace food from families has provided us with greater insight field-to-table is a priority for our $6 billion into the challenges some Kiwis face in horticulture industry,” says Prendergast. putting healthy food on the table each day,” “Along with evolving processes, we’re also says Prendergast. looking to the future of our changing tastes The UN Dialogue covered five distinct as we address the best way to increase areas of discussion. Access to fresh fruit consumption and encourage Kiwis to eat and vegetables for all, sustainable access their 5+ A Day. Innovative programmes to suitable and affordable land and water such as Fruit and Vegetables in Schools resources, the use of labour and technology, have been identified as an excellent way to the health and nutrition benefits of 5+ A share the health and wellbeing benefits of Day for all Kiwis and the resilience of our fresh produce,” he says. supply chains in the face of a major crisis The resilience of our fruit and vegetable were all explored. supply systems in times of crisis was also “The areas of discussion were deliberately examined during the dialogue. broad for this dialogue. While we could “As a net exporter of food, with excellent have easily focused on just one or two growing conditions and fertile land, of these critical topics, the UN set us Aotearoa is well-positioned to feed our the challenge of working on all five and population through good times and bad. identifying future areas to work on,” We’re focused on working together with says Prendergast. a collective of stakeholders to build even “Our collaboration with tangata whenua greater resilience within our current system representatives, and particularly the and future-proof the industry for the benefit participation of Dr Nick Roskruge, of all Kiwis,” says Prendergast.
“THE COVID-19 LOCKDOWNS TAUGHT US IMPORTANT LESSONS ABOUT OUR FOOD SYSTEMS.”
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[ sponsored content ]
HOW TO BE A WELL BEING
Family owned and operated Greenlea Premier Meats has created a range of flavourful drinking broths to satisfy the growing market for nutrientrich, gut health and immune system boosting bone broth tonics. Restore has launched with seven SKUs of free-range New Zealand chicken and grass-fed New Zealand beef broths. The 24- to 48-hour simmer process creates a nutrient rich broth by extracting all the goodness from the bones, including proteins, like collagen, and amino acids, such as glutamine, all of which have amazing power to benefit health and wellbeing. Drink yourself healthy! All of the broths are hormone and antibiotic free, certified gluten free, dairy free and trans-fat free, paleo and coeliac friendly. Drinking Bone Broths have taken the USA and Asia by storm with
“RESTORE PLANS TO BE AT THE FOREFRONT OF THIS CATEGORY’S GROWTH”
Bone Broth Bars in some places replacing Coffee Bars. It’s a rapidly growing sector and Restore plans to be at the forefront of this category’s growth with aggressive marketing and an ongoing new product development programme. For more information email restore@greenlea.co.nz or phone +64 7 957 8125.
restore.co.nz
The New Zealand Bone Broth revolution starts
here
Growing awareness of health and wellbeing is driving sales of Drinking Bone Broth around the globe. Following in the footsteps of the Kombucha revolution, it’s now a US$3 billion+ market with a CAGR (compound annual growth rate) of more than 4.5%. Greenlea Premier Meats has developed the Restore range of grass fed beef and free range chicken broths to deliver the tastiest and most beneficial drinking broths for New Zealand consumers.
Join us in leading the Bone Broth revolution in Aotearoa.
ALLERGY-FRIENDLY
FOODS
Many shoppers choose to avoid gluten or dairy, nuts or other allergens, either as part of a healthy diet, or for specific health reasons.
Allergen free snacking with Eat Real Allergies are becoming a more prevalent part of dietary considerations in the modern world, affecting all ages. Recent research indicates that up to 8% of children have a food allergy (in adults up to 4%) whilst 1 in 10 children under the age of one are struggling with at least one food allergy. “Looking at these statistics it is clear that there is a need for more healthy and allergy free food and snack options something the whole family can enjoy without worrying about how they or their loved ones might be affected,” says Channel & Brand Manager Joanie Nel. “At Eat Real, we continue to see the opportunity to confidently serve the greater community through providing snack offerings with real taste, real nutrition and most 12
FMCG BUSINESS - JUNE 2021
“EAT REAL SNACKS ARE FREE FROM UP TO 14 MAJOR ALLERGENS” JOANIE NEL, CHANNEL & BRAND MANAGER AT EAT REAL
[ feature ] importantly, real ingredients. Practically this means that our snacks must be delicious AND a healthier alternative to ordinary chips. Did we also mention that our range is lower in salt, has no added sugar and no nasties - so free from artificial flavours, colourings and preservatives?” According to Allergy.org.nz , common allergies across the board can result from the consumption (and in some cases just the mere exposure to) cow’s milk; egg; soy; peanuts; tree nuts and wheat as well as peanuts and shellfish. The great news? “Eat Real Snacks are free from up to 14 major allergens - the only snack in the market to confidently make this claim,” says Nel. In addition to this Eat Real Snacks are also gluten free, kosher and halal and all products are suitable for a vegan lifestyle and diet. Nel says: “Some exciting new news - we are introducing two brand new flavours: Tomato & Basil Hummus Chips and Sea Salt Lentil Chips. From the end of June 2021 these two new variants will sit proudly alongside our other best sellers adding to the great variety on offer. Just more ways Eat Real is ensuring that there is something for everyone and taste - allergen free.” For sales enquiries, call 09 410 1066; email sales@houseff.co.nz or visit https://houseff.co.nz Sources: http://www.allergy.org.nz/A-Z+Allergies/Food+allergy.html
Dovedale Dovedale is a Nelson based bakery producing a range of gluten free, keto and paleo breads, biscuits, crackers and cakes. They distribute
nationwide to New World, PAK’nSAVE, Four Square, Fresh Choice and organic health stores. In-store merchandising is provided by Storetaste. The ongoing popularity of the keto diet is driving Dovedale sales, says Bakery Manager Roland Dallas. “A keto diet is a low carb, high fat diet. By limiting carbs, your body will enter into a state of ketosis. This results in your body using its fat stores as an alternative to carbs as its primary energy source,” explains Dallas. “Keto diet followers lose a considerable amount of weight as well as feeling more alert with better gut health, digestion, improved skin and general wellbeing. Dovedale is meeting this demand with a range of keto products.” • Keto Hemp Bread - the only Keto bread in NZ made without baker’s yeast. • Keto Hemp Burger Buns - in a family friendly four pack • Keto Pizza Bases • Keto Firecrackers - made with a seed mix including hemp seeds, parmesan cheese and cayenne (hence the fire) And new to the market this month: Dovedale Keto Pitas - pockets of goodness made with a seed mix including hemp seeds, psyillium and green banana flour. All Dovedale bread products have a minimum one-month shelf life and their crackers and biscuits a one-year shelf life, says Dallas. For orders call 03 5391167 or email dovedalefoods@ts.co.nz (Vendor FSNI 2009800 / FSSI 103317).
KETO
GLUTEN FREE
VEGAN* * excl Firecrackers
Pizza Base
Bread
Buns
Crackers
NEW PRODUCT!
Keto Pita
Pockets of goodness made with a seed mix including Hemp Seeds, Psyillium & Green Banana Flour
Dovedale INT Ltd Stoke, Nelson www.dovedale.nz
[ feature ]
“OUR KEFIR IS FREE FROM ADDED SUGAR, DAIRY, SOY, GLUTEN, NUTS AND GMO’S” TESH RANDALL, RAGLAN FOOD CO
Raglan Food Co’s Probiotic Drinking Kefir Introducing Raglan Food Co’s newest family members - Probiotic Drinking Kefir! Four delicious flavours, each with different health benefits to get you through the day - Natural Coconut (Gut Health), Elderflower & Lime (Cleansing), Raspberry & Raw Cacao (Energy), and Green Apple & Ginger (Immunity). Raglan Food Co’s Tesh Randall explains: “As with our Coconut Yoghurt you know and love, each bottle of Kefir is 100% plant-based and allergy friendly. Our Kefir is free from added sugar, dairy, soy, gluten, nuts and GMO’s - it’s a drink the whole family can enjoy! Packed with live probiotics and Vitamin C, your gut (and taste buds) will thank you. Pour it into a glass, or shake and drink straight from the bottle to get your daily dose of goodness. Find us in your favourite supermarket!” For more information visit raglanfoodco.com and to order the range email orders@raglanfoodco.com
Superseed Crackers The Superseed Crackers range duly lives up to their name, crafting artisan “seed-only” crackers using a powerhouse of seeds that deliver on nutrition without compromising on taste, and catering to those with allergies and dietary requirements. Containing only organic seeds and nuts instead of flours and fillers, these “seed-only” crackers are a quality source of antioxidants, vitamins and minerals; a delicious cracker that ticks all the boxes. As a high fibre, high protein and low carb cracker option, the Superseed Crackers range also meets the demand for gluten-free and dairy-free products. Made in Wellington by Nikki van de Laar and her team of cracker specialists, Superseed Crackers are baked in small batches until crispy, making them a moreish, savoury snack either on their own or with toppings. The range offers three flavours; Garlic & Rosemary, Macadamia Nut and Lemon & Poppyseed; a completely new flavour to the market. Successfully selling through retailers across New Zealand such as Farro (Auckland), Huckleberry (Auckland) and selected New Worlds (NZ wide), 14
FMCG BUSINESS - JUNE 2021
Superseed Crackers are a unique addition to cracker varieties found in retail stores; offering a keto, vegan and paleo-friendly snack that stands out among other flour-filled alternatives. Superseed Crackers has had overwhelming support as a local New Zealand brand, especially from those seeking gluten and dairy-free snacking choices, where options are less frequent among the cracker aisle in supermarkets and food stores. Superseed Crackers attest to Nikki and her team’s understanding of the importance of allergy-friendly ingredients when it comes to crafting quality, healthy, wholefood snacks. For more information or to place an order, please contact nikki@creativecooking.co.nz
New gelatine free & gluten free confectionery brand: Fruit-tella Animal friends inspired Fruit-tella to create delicious jellies, which are gelatine free, gluten free and have an unmistakably fruity taste. Made with fruit juice, natural colours and flavours, they are a shareable treat to put a smile on everyone’s face! Available in two delicious flavours - Hippos and Sour Wrigglers. Contact your DKSH New Zealand Limited representative for more information or visit www.dksh.co.nz
®
a
nd E E R F GLUTEN DLY N E I R F N A G E V
TAKABLY S I M N U E H T TRY OUR V A L F Y T I U R F WITH FRUIT JUICE* Market Expansion Services by www.dksh.com
NATURAL COLOURING
*Contains between 2.8% - 3.6% Reconstituted Fruit Juices
DKSH New Zealand Limited 279 Railway Road, Milson, Palmerston North 4470 Private Bag 11047, Palmerston North 4442 Phone +64 6 356 5323, Fax +64 6 356 4726 customerservice.nz@dksh.com, www.dksh.co.nz
NATURAL FLAVOURS
TO ENJOY FRUIT-TELLA’S UNMISTAKABLY FRUITY FLAVOUR Contact your DKSH New Zealand Limited representative for more information.
MEAT’S MATCH Has reducetarianism taken hold in New Zealand? The latest data indicates Kiwi attitudes towards meat are changing.
Pravina Patel Insights Consultant Solutions & Innovation at IRI
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FMCG BUSINESS - JUNE 2021
New Zealand might be known for its livestock industry, but many Kiwis are increasingly turning their backs on meat. In a growing trend, plant-based foods are taking centre stage, as consumers see these as key to enjoying a healthier, more sustainable, eco-friendly and ethical lifestyle. An IRI survey revealed health is the number one reason Kiwis avoid or restrict meat, followed by environmental, sustainability and animal welfare concerns1. Eight percent of New Zealanders identify as vegetarian or vegan1 and according to Google Trends, New Zealand is the fifth most popular country for veganism in the world2. So, what’s the difference between a vegan and a vegetarian? The Vegan Society of Aotearoa New Zealand defines a vegan as, ‘a person who knowingly chooses not to consume, use or wear any products produced from animals or containing animal byproducts and avoids products tested on animals3.’ The NZ Vegetarian Society describes vegetarians as those who, ‘for whatever reason (e.g. moral, health, religious), do not eat meat (red meat, poultry, fish, shellfish or crustacea) or by-products of slaughter4.’ However, for many of us, it’s not about cutting out meat completely, but reducing consumption. The concepts of flexitarianism and reducetarianism are undoubtedly gaining momentum, as almost one in three Kiwis identify as flexitarian.1
Growing trend The increasing popularity of plant-based options is clear when considering that sales of pickled vegetables are up 6.6%, vegetable juices and drinks have risen 5.7%, fresh vegetarian snacks and meals have grown by 12.8%, and frozen vegetarian snacks and meals have jumped a whopping 16%. All are outperforming total pre-packaged goods growth, which has risen 1.9%5. Dairy alternatives have also seen phenomenal growth, largely due to the fact more than one in five Kiwis exclude or limit dairy in their diets1. Dairyfree shelf-stable milk, which makes up 45% of the category, has grown by 13.1%, outpacing category growth of 1%. Dairy-free ice cream and dairy-free yoghurt have both seen growth this year, up 25.4% and 4.8% respectively. And while non-dairy specialty cheese remains niche, it has still experienced almost double the rate of category growth5.
From alternative to mainstream As plant-based eating gains momentum, it’s clear everyone wants a ‘leaf ’ of the action. The hospitality industry is fully embracing it; not least because plant-based has become a micro-trend of health and wellness. A 2020 nationwide survey by The Restaurant Association of New Zealand identified veggie-centric and plant-based proteins among the top chef-driven trends for the year. Almost a quarter
[ feature ] of Restaurant Association members anticipated menus would increasingly be driven by reduced meat consumption6. Meal kit providers are also biting into the trend. My Food Bag and HelloFresh have extended their offerings to include vegetarian and plant-based packages, and The Kai Box and Green Dinner Table solely produce plant-based kits. Prep Plant Based Meals provide ready-to-eat dishes free of meat and dairy, while V on Wheels is a vegan meal delivery service. There is a stream of innovative vegan, vegetarian and flexitarian products hitting our grocery shelves. Star launches from the past year include Tip Top’s vegan Trumpet ice creams, Let’s Eat’s plant-based frozen meals and The Collective plant-based yoghurts and milk; all of which can boast in excess of $1 million in annual sales. Also making a splash, with sales of more than $100,000 this year, are The Natural Confectionery Co. vegan fruit flavoured jellies, The Baker’s Son vegan mince and cheddar pies and Milo’s Plant Based Energy dairy-free drink5. The choices for those looking for vegan and plant-based options have never been more abundant, from Wattie’s Plant Proteinz soups to Mrs. Green’s frozen vegan pizzas; Naturli’ plant-based spreads to Plantasy Foods’ baking supplies. Even wine is on the bandwagon, with new launches including The Vegan Wine Project and Hello! V.F. The trend isn’t restricted to food categories; Glad’s 50% plant-based range of plastic bags and wraps have enjoyed a sales lift of $1.4 million on last year, while Anchor’s 2-litre plant-based milk bottle has had almost half a million dollars in sales since launching in October 20205.
Meat in the middle Of course, the Kiwi love-affair with meat isn’t over just yet. Just as in the US three quarters of shoppers are adamant meat belongs in the diet7, here meat remains the meal anchor, and we still eat twice as much of it
as the global average8. This year Kiwi shoppers purchased an extra $32.9 million of frozen meat and $33.1 million of continental meats such as pre-packaged bacon, ham, salami and sausages5. Countdown’s Paul Ahern, Merchandise Manager – Meat commented: “New Zealand has a proud agricultural history and meat remains a key part of our customers’ shopping needs. In our stores, sales of meat have continued to grow in both value and volume but what we’re seeing – both here in New Zealand and overseas of course – is a desire for Kiwis to include more plants in their diet, and plant-based protein is a critical part of us being able to respond to this.” Consumers are very much open to products which maintain the taste and texture of meat – without being derived from animals. More than six in ten Kiwis have tried, or are interested in trying, meat alternatives8. Beyond Meat, pioneers in the new generation of plant-based products that mimic meat, continue to see year-on-year growth, with sales up 89.2% compared to 12 months ago5.
A helping hand IRI believes the plant-based movement has reached mainstream status and will only continue to evolve and strengthen. IRI are currently exploring the trend and will be working closely with suppliers on a syndicated market research project aimed at understanding consumer attitudes and behaviours around it. If you want to stay ahead of your competitors, get involved. Source: 1 IRI State of the Industry Survey 2020 2 www.chefspencil.com 3 www.vegansociety.org.nz 4 www.vegetarian.org.nz 5 IRI MarketEdge New Zealand, Grocery, MAT to 18/04/2021 6 www.restaurantnz.co.nz 7 IRI US – The Power of Meat© 2021 8 www.foodfrontier.org
“THE CHOICES FOR THOSE LOOKING FOR VEGAN AND PLANT-BASED OPTIONS HAVE NEVER BEEN MORE ABUNDANT”” ABUNDANT
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[ feature ]
PLANT
POWER It’s never been easier to go vegan, vegetarian, or flexitarian. There are loads of exciting new plantprotein choices available for shoppers who are looking to cut down on meat, from Watties Plant Proteinz range to Sunfed’s new Bull Free Beef, which is joining Sunfed’s line up of Chicken Free Chicken and Boar Free Bacon. “Bull Free Beef is juicy, meaty and as nutrient dense as traditional mince, but cleaner, healthier and better for our planet,” says a spokesperson. Using yellow pea protein for the meatiness and NZ grown beetroot for colour and juiciness, Bull Free Beef cooks, tastes and feels much like traditional mince. New products in this space also include a wide range of ready-to-eat vegetarian meals, Bean Supreme’s plant-based burgers, mince and sausages, the Bakers Son’s range of vegan pies, and even vegan-friendly new snack options.
Savoury snacking that’s seriously addictive! Honestly delicious and big on crunch! We’re excited to let you in on your new pantry staple, introducing a new and exciting ranging of Savoury Snacking products for those who are seeking a healthier snack option. EAT… Crunchy, crispy, roasted savoury snacks are available in three crunchtastic flavours: 18
FMCG BUSINESS - JUNE 2021
“VEGAN FRIENDLY AND A GOOD SOURCE OF FIBRE, THE EAT… RANGE IS A GREAT ALTERNATIVE TO TRADITIONAL SNACKS”
• E AT… Chickpeas (150g Resealable Pouch $4.99 RRP) • EAT… Broadbeans (150g Resealable Pouch $4.99 RRP) • EAT… Crispy Corn (150g Resealable Pouch $4.99 RRP) Lightly roasted in oil and then lightly seasoned with salt, these crunchy little morsels move seamlessly from handful to mouthful. Vegan friendly and a good source of fibre, the EAT… range is a great alternative to traditional snacks like potato chips, corn chips and pretzels. Super versatile and multipurpose, EAT… makes great toppers for salads and additions to platters and are perfect as a solus snack, or for sharing. Available in a resealable pouch and relevant pack sizes for multipurpose uses, with eye-catching packaging that has been designed to disrupt the shopper, driving penetration and with a wide household appeal. EAT… is now available in the Snacking Nuts aisle at selected New World and PAK’n SAVE stores nationwide. For more information go to www.eatsnacking.com or follow @eatsavourysnacking on Facebook and Instagram. For sales enquiries, please contact hello@eatsnacking.com
[ sponsored content ]
BEAN SUPREME MAKES CONVENIENT PLANT-BASED EATING EASY THIS WINTER
“BEAN SUPREME CONTINUES THAT PROUD TRADITION OF DELICIOUS, NUTRITIOUS, AND SUSTAINABLE NZ-MADE FOOD”
As the plant-based eating trend matures, the vegetarian category, which is now shopped by one third of New Zealand households*, has really appealed to consumers who are looking for convenient meal solutions that are healthy and tasty. Innovative Kiwi brand Bean Supreme is there for New Zealanders, whether they’re adopting a fully plant-based diet or just want to try yummy, healthy food – and the company has been doing so since the 1980s, when founder Paul Johnston saw the health and environmental benefits of plant-based foods and decided to share those with his fellow Kiwis. Bean Supreme continues that proud tradition of delicious, nutritious, and sustainable NZ-made food today and has recently released three new products that further harness current food trends and give consumers more options for warming, plant-based meals over the cooler months. Bean Supreme’s Quinoa & Mushroom Burgers join the brand’s already popular wholefood burger range and make for a quick, healthy midweek meal. Bean Supreme has teamed up with local grower Kiwi Quinoa grown in New Zealand’s Central Plateau, in keeping with Bean Supreme’s preference to support local wherever possible. Also perfect for the barbecue or a winter slow cooker are Bean Supreme’s new Supremely Savoury Sausages, the second entirely plantbased sausage in the brand’s range, which is set to be a flavour hit with the whole family.
Bean Supreme’s Wholefood Mince is a plant-based mince packed with real ingredients including shiitake mushrooms, cauliflower, puy lentils, buckwheat, and chickpeas. This new format is designed for versatility and promises to appeal to consumers who want to inject some plant power into their next dish of spaghetti bolognese, meatballs, or nachos. Like the rest of Bean Supreme’s range, these three new products do not contain palm oil or GMO soy, ensuring care for the environment through conscious sourcing practices. Johnston says that after leading innovation in vegetarian foods for several decades, Bean Supreme is a well-known and trusted brand that has shaped the way chilled vegetarian shelves look today. It was the first brand to provide plain tofu to supermarket shelves in the 1980s, before going on to be the first to create tofu sausages and marinated tofu, followed by wholefood burgers with the amazing success of the Beetroot Burger in 2015. “Our three new products have followed a simple philosophy and process. They’re not pretending to be meat – because they can be delicious and nutritious in their own right, while being a little kinder to the planet.” Bean Supreme Quinoa & Mushroom Burgers, Bean Supreme Supremely Savoury Sausages, and Bean Supreme Wholefood Mince (RRP $7.99 each) are now available in supermarkets nationwide. Visit https://beansupreme.com/ for more information. *Nielsen Data – Vegetarian Category Household Penetration MAT May 2020
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[ fresh produce ]
BEST IN SEASON June is the first official month of winter, so vegetables such as potatoes, pumpkin, kūmara, carrots, parsnip and swede will be in hot demand. Cruciferous vegetables like Brussels sprouts, broccoli, cauliflower, kale and cabbage are also essential winter favourites. Our outstanding range of citrus fruit is at its peak. New Zealand Navel oranges, Satsuma mandarins, lemons and grapefruit are all available to provide consumers with their daily dose of vitamin C. Delicious and versatile persimmons are around through until July and tamarillos will begin to make an appearance this month. Feijoas are now reaching the end of their season so make the most of them.
What to look for: Smooth, firm, clean parsnips ideally 5-7cm in shoulder diameter and 19-25cm long. Storage/handling: Stock rotation is essential as parsnip tend to wilt reasonably quickly. They look most attractive when displayed in straight or circular layers. Offer loose and pre-packed parsnip for convenience. Nutrition: Parsnips are a good source of dietary fibre which helps aid healthy digestion. They are a source of niacin, for a healthy brain and nervous system.
Kiwifruit
“KIWIFRUIT ARE A GOOD SOURCE OF VITAMIN C, WHICH HELPS SUPPORT IMMUNITY AND HEALTHY SKIN.”
Our world-famous fruit are in full swing and should be well featured, showcasing all varieties possible. These include Green, SunGold, Organic Green/SunGold and Sweet Green. There are limited quantities of the vibrant Red variety available up until the end of June. What to look for: Choose fruit that is semi-firm to touch, unblemished and with no soft, bruised spots or wrinkled skin. Storage/handling: Store kiwifruit at room temperature, out of direct sunlight for 2-3 days to ripen. Once ripe, keep refrigerated. Nutrition: Kiwifruit are a good source of vitamin C, which helps support immunity and healthy skin. They are also good sources of folate for normal growth of cells.
Parsnip The parsnip is a root vegetable belonging to the carrot family and is often thought of as only a winter vegetable. Although winter is when they are at their peak, they are available year-round but can be harder to find. Parsnips have a sweet, slightly nutty flavour and different varieties have very subtle taste variations and slightly different shapes. The sweet flavour develops when starch is converted to sugar. This happens in cold weather, preferably when frosts occur.
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Lemons Lemons are a staple fruit that need to be wellstocked in your produce department year-round. The bulk lemon crop is harvested in New Zealand between June and March and outside of this, they are imported to meet demand. The main varieties grown here are the Meyer lemon – a cross between a lemon and mandarin, with a high juice content and the Yen Ben – lighter in colour than a Meyer lemon and more tart in flavour. What to look for: Lemons should be heavy for their size with bright yellow skin, a pleasant fragrance and a little give when squeezed. Avoid lemons that are soft or with any sign of mould. Storage/handling: Lemons will not ripen any further after they are harvested. Where possible, refrigerate them to slow decomposition. Nutrition: Lemons contain a good source of vitamin C, which assists the body with iron absorption from food and supports mental vitality.
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www.unitedfresh.co.nz
[ cover story ]
TASTE IT. LOVE IT, SPREAD THE WORD.
For over 30 years Tablelands have been a popular spread for Australian families – and Tablelands’ affordable quality plant seed spreads are now available in New Zealand. The Tablelands range has been designed around health, nutrition and value for the whole family. Health experts such as the Heart Foundation have recommended using plantbased spreads with lower saturated fat than butter for many years. Tablelands spreads are made from plant-based seeds like Canola and Sunflower with oil being released via the process of pressing the seeds.
Why are Tablelands spreads healthier? • No artificial flavours & colours • 65% less saturated fat than butter • With omega 3 – essential for good health • Suitable for vegetarians • Made from plant seeds The range consists of five great tasting everyday spreads suitable for the whole family. • T ablelands Reduce Cholesterol with plant sterols to assist in reducing cholesterol.
“TABLELANDS’ AFFORDABLE QUALITY PLANT SEED SPREADS ARE NOW AVAILABLE IN NEW ZEALAND.”
great value option for customers to A reduce their cholesterol absorption. • T ablelands Olive Oil Spread 500g and Value 1kg tub - Tablelands combines the benefits of olive and canola oils to provide a great tasting and versatile spread for use on crusty bread, hot vegetables, salads and cooking. With an authentic olive taste, it contains 65% less saturated fat than butter and has no artificial colours or flavours. • T ablelands Buttery Dairy Free - Suitable for lactose intolerance, vegans and vegetarians and has a rich and natural butter flavour ideal for all the family. • T ablelands Dairy Blend Buttery spread has a delicious buttery taste and is super soft and spreadable straight from the fridge. Made from a blend of butter oil, buttermilk and plant seed oils this vegetarian spread has no artificial colours and flavours. Ideal for busy families. To order the range contact Anna Rutherford, National Business Manager, Brand Champs at anna@brandchamps. co.nz / Phone: 0800-336-676 For more information visit https://tablelandsspreads.co.nz FMCG BUSINESS - JUNE 2021
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BAKING A DIFFERENCE Top trends and a snapshot of new products in a super popular category. COVID-19 and New Zealand’s lockdowns brought new life to the baking category, as Kiwis dusted off their cookbooks and passed the time by recreating their favourite baked treats, says Matt Mays, Category Manager at Foodstuffs North Island. “Flour and other shelf stable goods were flying off the shelves, as people whipped up banana bread and sour dough recipes. “With the category now beginning to settle post-lockdown, we’re seeing a number of new products come through as consumer health trends shift. Alternative flours – like chickpea, buckwheat, and coconutbased products – and baking mixes are proving popular as the rise in gluten free, low sugar, vegetarian/vegan and keto diets continues and Kiwis prioritise their overall health and wellbeing,” says Mays.
Heilala Vanilla Heilala Vanilla’s range of premium and everyday vanilla extract and paste products can be found throughout New Zealand supermarkets. “While vanilla can get a bad rap for being boring, bland or plain, Heilala vanilla is just the opposite — complex, rich, and bursting 22
FMCG BUSINESS - JUNE 2021
“PRODUCING AWARD-WINNING VANILLA IS OUR SPECIALTY” BRIDGET ENSOR, BUSINESS SALES MANAGER AT HEILALA
[ category insights ] with flavour,” explains Business Sales Manager Bridget Ensor. “While producing award-winning vanilla is our specialty, investing in the communities of the Pacific is still at the absolute core of everything we do. “Our award-winning Vanilla Extract with seeds was launched in 2020. The flowing liquid speckled with seeds makes it the ideal inclusion in cookies, cakes and ice cream along with it being a delicious addition to tea, coffee and smoothies. Since launching, Heilala has received numerous awards. “We also have a strong innovation pipeline with a number of vanilla-centric products in development. “Following the Covid challenges of 2020, wellbeing, value/quality and identity/belonging continue to resonate with consumers. Heilala aligns with these trends and we see the brand pushing into new areas and widening the audience from bakers or baking occasions to more functional food.” For more information or to order Heilala Vanilla, contact your Selling Solutions representative. www.heilalavanilla.com
Secret Kiwi Kitchen Secret Kiwi Kitchen was founded by Two Auckland-based Mums who believe in the magic of home cooking. Secret Kiwi Kitchen White Chocolate Blondie Mix is an easy one bowl baking mix that takes only five minutes until it’s oven ready. Secret Kiwi Kitchen also offers a Chocolate Cake & Cupcake Mix. Co-owner Lauren Lulu Taylor told FMCG Business: “At Secret Kiwi Kitchen we strive to produce products that not only make people’s lives easier but highlight New Zealand’s best ingredients. The quality of ingredients and taste is our key point of difference. All the ingredients are natural and mostly sourced from New Zealand. The coconut is sulfite-free. “We are now in select New World stores and are doing really well at Farro Fresh stores.” For more information visit www.secretkiwikitchen.com
Source: NIELSEN SCANTRACK Total Supermarkets - MAT to 25/04/21 Val $ Sales
Val % Chg YA
TOTAL BAKING NEEDS
106,381.7
0.7%
COOKING CHOCOLATE
16,235.8
3.9%
DRIED CAKE & BISCUIT MIXES
13,488.0
-10.5%
GRAINS AND SEEDS
12,816.1
13.3%
ESSENCES & COLOURINGS
8,969.8
8.9%
MIXES & BATTERS
7,890.0
-7.7%
BREADCRUMBS
7,453.6
8.0%
COCOA
6,679.7
-1.3%
COCONUT
4,688.5
-0.9%
YEAST
4,367.5
-3.2%
BAKING JUICE
4,179.3
6.3%
CAKE DECORATIONS
3,503.5
1.4%
COATING & STUFFING MIXES BAKING POWDER ICINGS & MARZIPAN BAKING SODA CORNFLOUR BAKING CUPS GELATINE CREAM OF TARTAR CITRIC ACID BRAN ARROWROOT TARTARIC ACID TOTAL FLOUR
3,008.6 3,003.2 2,510.3 2,359.4 2,048.3 1,247.6 934.3 448.0 169.2 160.8 140.6 79.5 33,595.3
-0.6% 3.6% 0.5% -6.5% -9.0% -6.2% -0.0% -15.0% -1.8% 1.3% 2.3% -6.7% -13.1%
STANDARD FLOUR SELF RAISING FLOUR SPECIALITY FLOUR
23,347.0 5,470.1 4,778.2
-14.9% -11.3% -5.0%
FMCG Business produces a monthly snapshot of category news and highlights, based on information from participating clients and Nielsen data available at time of print. To showcase your products in upcoming category reports, please contact trubanowski@intermedianz.co.nz. FMCG BUSINESS - JUNE 2021
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HOT DRINKS Local suppliers share their news, product launches and best sellers.
As the temperatures drop around the country and wintery weather arrives, hot beverages are top of mind and top of the shopping list. While some consumers look for immuneboosting cordials and healthy herbal infusions, tea and coffee are still very popular choices in New Zealand households. Premium roasted coffee, flavoured and RTD coffees especially are in big demand this year.
Limited Edition Havana Coffee Works have been leading the coffee revolution in New Zealand since 1989. Back then, there were just four coffee companies roasting in New Zealand. The industry has since grown substantially, but from the beginning, Havana has stayed true to their vibe and vision – roasting the COFFEEUFEEL, having fun, being connected to the community and celebrating the origins of coffee. Plus drinking a heap of epic espresso! 24
FMCG BUSINESS - JUNE 2021
[ category insights ] The latest Limited Release from Havana Coffee Works, Levanté, has launched onto supermarket shelves across the country. Adding to Havana’s current supermarket offering, Levanté is a premium coffee blend enclosed in a bag inspired by the sunset and sunrise, and flavours of butterscotch glazed custard pastry with spiced stone fruit filling. Designed for the ‘Late nighters and early risers’ this coffee will elevate your moment. “Levante, as part of the Havana Limited Release range has been exceptionally well received by consumers and retailers nationally,” said Lee Brown, General Manager. Levante is available to order, along with the entire Havana supermarket range, at selected retailers nationally and via email supermarketorders@havana.co.nz. Get your Levanté limited release before it’s gone!
Dilmah and a ‘Trusty Cuppa Tea’ “This year we celebrate 30 years in New Zealand so it’s a time to reflect on how important New Zealand has been in the success of Dilmah since the brand began here at that time,” says Brand & Product Manager Jonathan Kane Houldsworth. “New Zealand is a second home to the Dilmah family and it’s an honor to be told by customers that they consider us an adopted Kiwi brand. It’s also an honor to have been awarded by Readers Digest as New Zealand’s ‘Most Trusted Tea’ for the sixth year in a row.” He adds: “Tea remains a mainstay of the New Zealand community and a staple item in the home to bring together friends and family who value Dilmah for not only the quality of our tea but our philosophy that ‘Business is a matter of human service’.” Call our Retail Business Manager, Nicole Campbell to talk tea. All sales & distribution now direct with the Dilmah Office: 0800 DILMAH (345624)
Source: NIELSEN SCANTRACK Total Supermarkets - MAT to 25/04/21 Val $ Sales
Val % Chg YA
Total Hot Beverages
482,342.4
4.6%
COFFEE ROASTED & GROUND COFFEE
122,179.7
14.0%
COFFEE INSTANT COFFEE
111,886.3
-2.3%
COFFEE FLAVOURED COFFEE
72,170.8
15.1%
TEA
53,714.6
-3.7%
CORDIALS AND SYRUPS CORDIALS
29,098.1
3.7%
TEA HERBAL TEA
24,831.3
-2.1%
MILK MODIFIERS TONIC FOOD DRINKS
21,812.6
-2.0%
CORDIALS AND SYRUPS PRESWEETENED POWDERED BEV.
15,822.0
-3.2%
MILK MODIFIERS DRINKING CHOCOLATE
13,771.2
8.5%
TEA GREEN TEA
8,658.9
-7.0%
CORDIALS AND SYRUPS SODA SYRUPS
2,664.7
1.3%
RTD COFFEE
2,069.1
112.6%
COFFEE ADDITIVES
1,128.8
1.7%
COFFEE ESSENCES
1,103.9
21.5%
COFFEE DRINK WHITENERS
646.6
4.3%
COFFEE SUBSTITUTES
499.2
-2.6%
COFFEE FILTERS
284.8
9.8%
“THIS YEAR WE CELEBRATE 30 YEARS IN NEW ZEALAND” DILMAH BRAND & PRODUCT MANAGER JONATHAN KANE HOULDSWORTH FMCG Business produces a monthly snapshot of category news and highlights, based on information from participating clients and Nielsen data available at time of print. To showcase your products in upcoming category reports, please contact trubanowski@intermedianz.co.nz. FMCG BUSINESS - JUNE 2021
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[ good business ]
COUNTDOWN’S PATH TO CAGE-FREE EGGS BEGINS TO TAKE FLIGHT
Five Countdown stores across Auckland and with our egg producers to establish a clear path Wellington have announced they will only have to cage-free so that we’re confident we have cage-free eggs on the shelf for customers. enough future volume to achieve our goal. Countdown announced in 2017 that it “Eggs are a staple food, and affordability is a would go cage-free in all on-shelf eggs by really important consideration. As volumes of the end of 2024 in the North Island and barn and free-range eggs continue to increase, the end of 2025 in the South Island. From this will in turn improve access and affordability 24th May, shoppers at Countdown’s Milford, for customers. We’re committed to working Waiheke Island, Grey Lynn, Crofton Downs and with egg farmers to improve animal welfare Newtown stores will only be able to buy freestandards and also help ensure eggs remain as range and barn eggs as the company begins to affordable as possible.” roll out the change. William Sandle, from Otaika Valley Free Countdown’s General Manager Corporate Range Eggs,says: “Otaika Valley Free Range has Affairs, Safety and Sustainability, Kiri Hannifin, worked with Countdown since 2015 to increase says Countdown has been working closely with the availability and supply of free-range eggs. its egg farmers since 2017 to help build more We are thrilled to see Countdown taking the Countdown’s General Manager Corporate Affairs, Safety and Sustainability, Kiri Hannifin cage-free volume, and that these first five stores next step and trialling some stores as cage are critical to help understand future demand. free only. This reinforces for us Countdown’s “Animal welfare is a key concern for our business and our commitment to proactively move towards cage free as the supply and customers, but we’re highly aware that people make purchasing availability of these eggs increases.” decisions based on a range of factors, including price and what they’re Countdown’s goal is to have 100% cage free eggs on shelf, subject using eggs for. While moving five stores to completely cage-free is to regulatory changes and based on available supply, affordability a big shift, in these particular stores around 90% of customers are and customer demand. Countdown’s Egg Producer Programme already telling us that cage-free is important to them, so we hope for Free Range and Barn launched in 2016 to provide certainty to they’ll embrace the change to completely cage-free,” says Hannifin. supply partners that if they invest in free range or barn egg farming, “While 2024/2025 might seem a while away, we have to work closely Countdown will buy those eggs. 26
FMCG BUSINESS - JUNE 2021
[ good business ]
BUDGET SETS HIGH EXPECTATIONS FOR MORE TO COME ON CLIMATE ACTION Business leaders from the Sustainable Business further investment to be committed through the Council (SBC) and the Climate Leaders Coalition between-Budget contingency fund, and then (CLC) welcomed the 2021 Budget announcement significant investment in Budget 2022.” on climate action, noting that it sets high Mike Bennetts, Z Energy Chief Executive, expectations for further commitments resulting and Climate Leaders Coalition Convenor says: from the imminent Emissions Reduction Plan, in “This Budget takes important steps that are next year’s budget. consistent with our recent recommendations Executive Director of the Sustainable to Government on climate action priorities Business Council Mike Burrell said: “We see and joint submission to the Climate Change the announcements as important initiatives Commission on their draft advice. We will to advance climate action in New Zealand. By continue to work closely with the government, quadrupling the funding to accelerate investment and across the political spectrum, to maintain The Budget will help to incentivise the uptake of low emissions vehicles. in low-carbon technology, allocating $24 million the momentum required to implement for agricultural greenhouse gas mitigation research these recommendations.” and development, and committing $302 million to implement a regime The key recommendations are: investing in low carbon transport to incentivise the uptake of low emissions vehicles, the Government has with a roadmap to accelerate fleet transformation; transitioning signalled a commitment to accelerate New Zealand’s climate transition. out process heat; creating an accelerated pathway for methane and “Our understanding is that the Government will respond to the nitrogen reduction technologies; building a New Zealand bioeconomy; Climate Change Commission’s final report through the Emissions and incentivising a significant scale-up of energy efficiency across Reduction Plan, so when this plan is released later this year, we expect the economy.
[ sponsored content ]
NEW HELLERS SHORT CUTS RANGE – A SMART WAY TO TASTY Hellers is New Zealand’s butcher, with a wide range of family favourites for all meal occasions. After successfully launching a raft of new products into butchery and chilled deli in February they are back with more value-added butchery products. The Butchery Meal Solutions Category is worth $7m* and growing strongly. Marketing Manager Brydon Heller says: “Insights continue to tell us consumers want ‘time or effort savers’ and products which are tasty and versatile. This range delivers on all of those from one of New Zealand’s most trusted brands.” Hellers are launching a butchery range which will be positioned in
the convenience meal component category. NEW Hellers Short Cuts Meals in Minutes are designed to make your life a bit easier and your dinner a lot yummier. With a wide range of flavours to suit everybody: Italian Mince, Mexican Mince, Butter Chicken Curry and Meatballs in Sauce, they are the smart way to tasty! This range will hit stores 8th June and will be supported by an extensive marketing campaign including TV, video, social media, instore demonstrations, and instore activity. For more information please contact your local Hellers representative ph: 0800HELLERS(453 3377), info@hellers.co.nz. *Iri Scan Data to 25/04/21
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[ sponsored content ]
STRUCTURAL DESIGN MADE TO ORDER The Baseline team came up with a perfect plan when Brewery Tuatara needed a branded tasting table that could be set up, packed down and transported, with ease-of-use and environmental sustainability as key requirements.
A tasting test “Our team loves a puzzle – especially puzzles that require us to create a functional, aesthetically pleasing object that fits a client’s needs. When Tuatara came to us wanting a printed, branded tasting table for events, I began mulling it over straight away,” says Ruben Norris, Structural Designer at Baseline. “Tuatara wanted the tables made from wood and knew we could design, print and cut plywood, as we’d previously made them some small tabletop signs. As a sustainable material, using wood suited the Tuatara brand, and they were keen to invest in using this durable and environmentally friendly product.”
Drafting the table
Structural Designer, Ruben Norris, with the final product.
Norris explains: “For us it was a straight-forward brief. In Adobe Illustrator, I drafted a first design using measurements I’d taken from taping out the area required to display beer bottles, an ice bucket, some cups, allowing room for someone to work behind the table. “The design also had to be sturdy enough to hold the weight of beer bottles and ice, be robust enough to survive in a crowded tasting environment, and clearly display Tuatara’s branding. “After using Adobe Illustrator for the 2D designs, I imported my drawings into CAD to see how it would all work together in 3D, and applied Tuatara’s artwork to mock-up the look. In many ways it was similar to work I’d done for some of our other clients, Foodstuffs, Farrah’s and Hutt City Council, creating 3D, slot-together, flat-pack cardboard display units.”
Printing onto ply The final tasting table design was essentially a five-sided box, with a top fitted above – each piece slotting together in a certain order. While
(L-R) Sam Hammond, Head of Production; Amy Molloy, Client Service Manager, Stephanie Gasperini, Chief Executive; Andrea Thompson, Head of Growth & Operations
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FMCG BUSINESS - JUNE 2021
the table kits come with assembly instructions, they’re very easy to put together, especially matching up the branding. “While printing on ply is environmentally a good decision, it’s not the cheapest, we designed the entire table to be cut from a single sheet of ply, with almost no waste,” says Norris. “The great thing about this design is that it’s completely customisable. We made thousands of micro decisions on this, so it’s entirely customised to what Tuatara needed and is easily customisable for another client.”
Sign off and delivery “The tasting table designs went through a handful of iterations, each tweaked slightly from each other, before the final design,” explains Norris. “From there, a file for the ZUND digital cutting machine was sent to our production team, who made an unprinted (to reduce costs) test model from ply to check it met all requirements – that is, it goes together and comes apart easily, and is structurally sound in real life. “Once signed off, the job was slotted into our print and cutting schedule, and into production. “Tuatara could definitely not have purchased its new tasting tables off the shelf. The advantage of coming to us is that we design specifically to the brewer’s bespoke requirements, then print, produce and deliver. The advantage is that we do it all,” says Norris. Baseline is an end-to-end strategy, design and production studio, as well as specialists in complex logistics delivering influencer kits, branded experiences, and large-scale promotions around New Zealand. For more information visit www.baseline.co.nz
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[ innovation ]
NZ MADE BUTTERMILK PANCAKE & WAFFLE MIX •
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Two Mums who believe in the magic of home cooking DUCT OF T HE PRO Y CG are the founders of Secret Kiwi Kitchen. The team is M FIN AL IST based in Auckland and strives to deliver products that not only make people’s lives easier, but also highlight PRODUCT OF New Zealand’s best ingredients. THE YEAR Their all-natural pancake mix is made with New Zealand buttermilk and milk. They also added Heilala’s real vanilla and a pinch of malt to create a fluffy pancake with depth. The mix can also make crispy edged waffles. “The quality of ingredients and taste is our key point of difference,” they say. “Many of the budget pancake ‘just add water’ brands are produced in large plastic bottles. We have packaged ours in a reclosable zip lock soft plastic recyclable bag that allows for individual servings to be made and is easier to transport when on the go. “Other budget brands on the market are produced by International conglomerates using imported milk and GMO flour. Our pancake mix offers a delicious upmarket alternative that appeals to a wider demographic.”
DUCT OF TH PRO EY CG M
“OUR PANCAKE MIX OFFERS A DELICIOUS UPMARKET ALTERNATIVE THAT APPEALS TO A WIDER DEMOGRAPHIC.”
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PRODUCT OF THE YEAR
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FMCG BUSINESS PRODUCT OF THE YEAR Do you have a Hero product that stands out from the crowd? If there’s a tasty tastebud teaser, NPD rockstar, or best seller in your portfolio that deserves to be crowned ‘Product Of The Year’ - we’d love to hear from you! We’ll showcase some of the finalists in upcoming issues and reveal the FMCG Business Product of the Year later in 2021.
UCT OF THE OD YE PR A
To find out more on how to enter please email: trubanowski@intermedianz.co.nz 30
FMCG BUSINESS - JUNE 2021
[ legal advice ]
CRAFTING A SMART CREDIT POLICY Most businesses appreciate that a customer’s purchasing decisions may hinge on the provision of credit. Consequently, most businesses offer some form of credit to their customers. Those that don’t, risk losing customers to competitors. On the other hand, credit costs a business in many ways such as the cost of borrowing that money, administrative costs for collection and the lost opportunity cost of using that money elsewhere. Issues of late payments and bad debt can also arise. These risks can be reduced by using a smart credit policy, especially during times of economic uncertainty. Some common policy terms that are worth considering are discussed briefly below. Timing: Invoices or purchase orders often say that payment is required within 20 days of delivery of the good or service. The business carries the risk of non-payment for 20 days for no additional fee or interest. Apart from specifying a normal interest rate that applies for the 20 days, you could also specify a higher default interest rate that applies to late payments, or an incentive for early payment could include waiving interest if payment is made within 20 days. A further incentive could be to reduce the invoice by a small percentage in exchange for early payment. Remedies: If a customer fails to make payment, there is no automatic right to claim legal and collection costs from the customer. To be able to claim such costs, your credit policy should specifically say that all legal fees on a solicitor/client
basis, costs of enforcement and collection will be payable by the customer if there is a default. You could also add that any waiver or indulgence given to the customer will not apply to these costs unless you specify this in writing. Creditworthiness: In cases where you wish to check a customer’s creditworthiness, it can be useful to run a credit check with an agency or to simply call other trade creditors of that customer. A list of references could be included in your application for credit and permission to communicate with the credit agency and references should be included to avoid privacy law issues. Escalation: A common method for identifying debtors of concern is to establish the average time in which customers make payment so that you have a baseline from which to compare customers. It can be useful to include in the credit policy a schedule as to what will happen with delinquent debtors. For example, there may be a reminder five days after the due date, a second reminder at 10 days and if payment is still not received then the debt will automatically be passed to a collection agency. The preceding paragraphs briefly describe some of the considerations that go into an effective credit policy. A thoughtfully designed policy should save you time chasing debtors, collection costs, enhance customer relationships and ultimately improve your balance sheet. Your lawyer will be able to recommend a comprehensive policy tailored for your business and customers.
Aman Prasad is a Solicitor at Steindle Williams Legal specialising in property, business and commercial law. swlegal.co.nz
“A THOUGHTFULLY DESIGNED POLICY SHOULD SAVE YOU TIME CHASING DEBTORS”
FMCG BUSINESS - JUNE 2021
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[ marketing ]
HOW IS YOUR BRAND’S 7-38-55?
Lew Bentley, Head of Strategy at Shopper Marketing Agency Energi
“SHOPPERS WILL RESPOND TO A PRODUCT ON A SHELF MOSTLY BY THE DESIGN IMPRESSION IT CREATES”
According to Psychology Professor Albert Mehrabian at the University of California in Los Angeles, when we communicate only 7% of meaning is received through spoken word, 38% through tone of voice and 55% through body language. It’s a golden ratio of communication to which humans are naturally calibrated to, whether we like it or not. This concept has been around for 40-odd years and over that time it has been applied by experts to all sorts of communication from advertising, to business deal-making to hostage negotiation. It’s proven. The reason it works lies with how we humans process the world around us. We take in and respond to external stimulus using three ‘filters’. The great majority of how we experience things is unconscious and instinctual, our second filter is emotional feelings and a distant third filter is our conscious thought. That means that we are hard-wired to relate to things primarily with unconscious impressions and emotions, rather than rational thinking. Furthermore, due to something called ‘confirmation bias’ we often don’t apply rational thought all that objectively. Rather, we tend to emphasise evidence that supports our impressions and feelings. The fundamental implication for the 7-38-55 Rule in marketing is that what we say is way less important than the impression we present. That means shoppers will respond to a product on a shelf mostly by the design impression it creates and less by messages on the pack.
In marketing some like to think that shoppers read the label on packs earnestly forming decisions based on rational information. But that pales in comparison to the heavy impressionistic and emotional lifting delivered by design. Manufacturers might fret over quality and feature call-outs and on pack information, but the reality is that it is generally more important to themselves than the buyer. For FMCG marketers, this means your first consideration for attracting shoppers should be how to create a distinctive and seductive visual impression that lures attention. If shoppers have to get up close and read the benefits of your product before seeing its value, then your 7-38-55 Rule won’t be adding up. The right type of impression and emotion for your brand to convey depends on how you manage three factors:
Start with the core drivers of the category Every category has cues that people will relate to at a fundamental, instinctive level that tell people that this product has an inherent ‘rightness’. In baby products parents are programmed to relate to a baby’s face. Cleaning products need to look bright and fresh. Food needs to look delicious.
Add nuance of the positioning you want your brand to have within the category What is the part of the market you want to occupy? Do you want to look premium or cheap? Are you all about traditional family values? Are you presenting a scientific break-though?
Create elements unique to your brand What is unique to your brand? How do you create distinction with colour, symbolism, or form to stand out from competitors and not recede into the shelf? Brands like Coca-Cola, Pics, Lewis Rd Creamery, and T2 all benefit from an unmistakable brand identity within the context of their categories. Applying the 7-38-55 Rule in your brand design is the key to winning shoppers at a distance with the right immediate impressions and feelings. You can’t rely on people to read the details on your pack. It’s not in our nature. 32
FMCG BUSINESS - JUNE 2021
MARKETING SUMMIT Ellerslie Racecourse, Auckland
Register Now Tuesday 5 October 2021 The one-day marketing masterclass for every FMCG professional BROUGHT TO YOU BY THE TEAM BEHIND FMCG BUSINESS
#FMCGmarketingsummit FOR MORE INFORMATION
M: +61 415 404 264
E: bcurtis@intermedia.com.au
www.fmcgsummit.co.nz
[ FGC ]
GETTING COMPOSTABILITY RIGHT
Katherine Rich Chief Executive NZ Food & Grocery Council www.fgc.org.nz
Ensuring accurate claims on product labels is critical to any business, and the laws are clear. Get it wrong or make a false claim and the result could be disastrous. It could lead to customers buying elsewhere, possibly leading to the demise of the product or even the company. It could also result in costly court action. Food and grocery manufacturers are acutely aware of the importance of getting label claims right. In the case of food manufacturers, claims are literally a matter of life and death. For example, an inaccurate ingredients list could lead to a consumer eating something they are allergic to. A wrong use-by date could mean consumption of a product that has become dangerous. So, there’s a lot hanging on label accuracy. Thankfully, producers have shown their labels can be trusted. Billions of products are sold each year but there has only ever been a miniscule number of breaches of the Food Standards Code, mostly due to oversight. Partly thanks to this, New Zealanders inherently trust our food products, and the industry works hard to keep it that way. Over the past couple of years, more consumers have also begun to demand trust around products’ claims they are ‘green’ – that packaging really is made from recycled, recyclable or compostable materials as described. This goes hand-in-hand with what surveys are showing, particularly post-COVID – that consumers are increasingly looking for brands that are socially responsible and purposeful.
Consumers are increasingly looking for brands that are socially responsible.
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Against that background, the Food & Grocery Council is doing ground-breaking work on packaging sustainability. Our Sustainability Committee, comprising representatives of member companies as well as from Countdown and Foodstuffs North Island, is working to a big agenda, tackling plastics and paper/fibre use and recycling, metal collection and recycling, input into the establishment of a beverage container return scheme, and compostability of packaging. Led by Christian Abboud, CEO of Nestlé, with advice from sustainability expert Lyn Mayes, of Mad World, they are changing the face of how companies look at packaging. The work of their Compostable Products subcommittee is particularly interesting because it’s an area that until now hasn’t been investigated to the extent others have. Led by Damian Wright, of Clorox, it has dived deep into compost facilities (not literally), and talked to manufacturers, supermarkets, government officials, and overseas experts to build its knowledge about how compostable products need to be handled in New Zealand’s waste stream. It concluded compostable products to be consumed at home are not introduced into the market until there is infrastructure to take them. Basically, New Zealand doesn’t have the infrastructure for commercial composting of compostable plastic products and their packaging, and home compost units are not at scale. This “Not for Now” has been agreed by the FGC Board. The group has identified steps needed before it will recommend the introduction of plastic compostable packaging and products for household use, and is working on how they might be implemented. It’s a decision that’s aligned with the Commerce Commission’s environmental claims guidance. That says compostable claims should be backed up by “firm evidence” that products or packaging will break down into usable compost in an industrial composting facility or a home composting system, and that “To avoid misleading consumers, [companies] should also consider the availability of composting facilities for consumers likely to acquire the goods. Any known limitations or qualifications around access to or availability of such facilities should be clearly and prominently shown.” While labelling can often be a challenge for manufacturers, this is another area where FGC supports its members. If you need advice, you’re welcome to call us. We also welcome participation in our Sustainability Committee. Although now, with over 70 dedicated industry leaders involved, it’s more of a movement!
[ export ]
FRENZ EGGS FOUNDER ON A MISSION TO KEEP IT REAL In the early 1980’s Rob Darby bought caged hens and was disappointed with what he discovered. “They could barely walk let alone scratch around the yard after being kept on a caged floor all their life.” He began raising chicks and would sell any excess hens after rearing. Word quickly spread and Darby ended up rearing hundreds of free-range hens for others. “The egg demand was constantly increasing and the comments about the taste difference inspired me to continue to grow rather than decrease.” “We then went to see Woolworths and they allowed us to supply free-range eggs into their supermarkets and for the first time customers had the opportunity to buy genuine free-range eggs. Up until then there was no choice but cheap caged white eggs. “Our Mantra is ‘keeping it real’ and our vision is ‘making it better’,” Darby says. When the rest of New Zealand was going for bigger, cheaper eggs and looking at what corners they could cut to be more price competitive, FRENZ went in the opposite direction. “We converted mussel waste to chicken feed, made our eggs even more nutrient rich in Omega’s and natural proteins. We use the sun to power solar panels so as to sustainably wash and sanitise and pack every egg to the highest standards in the world. We have the most dedicated workers and thinkers who are proud of the brand and what it stands for and where they can take it.” Innovation has always kept Darby on his toes. He always wanted to grow the company into overseas markets and started with the US. “It’s the hardest market with the highest standards in the world but we figured if we can make it there and set up to supply their high standards, we can supply to anyone. Export is not a magic word and requires tremendous patience and attention to detail.” After 20-years in the US, FRENZ grew into Singapore, Macau, Hong Kong and intermittent supply into some Pacific Islands. “Our goal is to supply anywhere in the world to the highest standards and deliver those eggs at the same price or less than a local delivery 50km down the road,” says Darby. Exports grew 60% last year, however New Zealanders are still the company’s biggest customer.
Being an essential business, FRENZ was able to continue business as normal during the COVID pandemic. However, flights and shipping schedule changes disrupted the business and costs increased. “With every trial comes opportunity,” Darby says. “The demand for natural food has increased significantly. Let’s face it, there’s never a better time to have a healthy immune system and eating superior good quality food without chemicals makes sense to discerning customers.” Darby says when it comes to exporting, there’s no better country to be seen to be exporting from than New Zealand. “They won’t know your brand to begin with, but they do know brand NZ. Our NZ mum and dad farmers are innovative, reliable and the most experienced genuine free-range farmers.” The business had support from Callaghan Innovation, Ag-Research, Auckland University and local engineers. “A saying we have on the wall says, ‘doing business with partners – not clients’, [it] says a lot about the close relationships we have built along the way.” He has some valuable advice for Kiwi exporters: “Know your points of difference and stay true to your beliefs.” In New Zealand, FRENZ free-range eggs are sold in North and South Island supermarkets, speciality stores, butchers and cafes.
Catherine Beard is Executive Director of ExportNZ, which serves its members via regional offices throughout the country. To find your nearest office go to www.exportnz.org.nz
“OUR GOAL IS TO SUPPLY ANYWHERE IN THE WORLD TO THE HIGHEST STANDARDS” FRENZ EGGS FOUNDER ROB DARBY FMCG BUSINESS - JUNE 2021
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[ events ]
NZ PIE AWARDS CALL FOR ENTRIES
“CELEBRITY CHEF PETER GORDON WILL HELP DECIDE THE WINNING PIE”
The Bakels New Zealand Supreme Pie Awards are now open for entries after a year’s lapse, and bakers can’t wait for judging day. Any commercial or retail baker can enter at www.nzbakels.co.nz including café and catering bakers. To be named the Supreme winner will mean a massive boost to their business with extensive media coverage. Pie lovers across New Zealand will be racing to their bakery to Diary dates try the champion pie and the May 3 – entries open bakery’s name will go down June 24 – entries in history in a blaze of glorious close at 5pm pie-making. July 22 – Judging Day This year, celebrity chef Peter July 27 – Bakels Gordon will help decide the NZ Supreme Pie winning pie, having returned to Awards New Zealand to establish Homeland restaurant and cooking school. Celebrity chef Peter Gordon Gordon says he loves a good Kiwi pie and he’s excited about finding one among the thousands of entries. NZ Bakels Managing Director Brent Kersel says there is a real sense of excitement about the launch of the 24th Bakels NZ Supreme Pie Awards. “Many bakeries were badly affected by the Covid lockdowns and although they have been able to regain much of that lost business, the Pie Awards were something they really missed as an opportunity to test their skills against other bakers. The Pie Awards have become the ‘Oscars’ of New Zealand’s baking industry and it’s fantastic to be able to celebrate the best in the business. “We created the Pie Awards in 1996 with the intention of improving the overall quality of pies in New Zealand but the competition has gone way beyond that. From basic beginnings to 12 judging categories; in excess of 5000 pies entered and multiple Supreme winners, not to mention our current reigning champion, Patrick Lam of Patrick’s Pies Goldstar Bakery in Tauranga, who holds the record for seven Supreme Award wins. Kersel says it is an absolute honour to have Peter Gordon joining the The 2019 Gourmet Meat Pie gold award went to Orewa Bakery for their judging team this year. Moroccan Lamb pie. “Peter is recognised the world over for what he has achieved as a chef. Without his talent we may not have had fusion food. Imagine that! And we’re very privileged to have him judging our pies. I think the Gourmet “In our 2019 competition we renamed the Steak and Gravy category to Meat and the Café Boutique categories will be of particular interest to the Truckie & Tradie category and one lucky truck driver won a chance Peter. They are categories where our bakers really become inventive, to attend the Pie Awards. This year we’re doing that again. The Gourmet often with spectacular results, like Clareville Bakery, which won Supreme Meat category has been selected to be the Truckie & Tradie category in 2014 with a lamb cutlet protruding the top pastry and nestled in a after loads of truckies and tradies recommended their favourite pie was creamy kumara mash. actually a little bit more gourmet.” 36
FMCG BUSINESS - JUNE 2021
[ events ]
PALMERSTON NORTH TO HOST NZ FOOD AWARDS GALA DINNER Key dates
Fair Food Charitable Trust - winners of the Palmerston North City Council Greater Good NZ Food Heroes Awards and Massey University Supreme Winner 2020. (L to R) Jason Crawford (Eventbase); Veronica Shale (Fair Food); Justine Knowles (Fair Food); Pat Tobin (Toby’s Seafoods) and Palmerston North City Mayor Grant Smith at the NZ Food Heroes 2020 gala event.
The New Zealand Food Awards gala dinner is on the move to Manawatū! For the first time, Palmerston North will host the awards announcement, with around 400 guests expected to attend the event at the Central Energy Trust Arena on 14 October. The 12 category winners and overall Massey University Supreme Award winner will be announced, with guests enjoying a three-course meal, drinks and entertainment. Mayor Grant Smith says it’s fitting the city host the awards in 2021, as it commemorates 150 years. “Palmerston North is looking forward to hosting the 2021 New Zealand Food Awards, an event the city has partnered with for the last six years. The city is also home to partners Massey University and Food HQ. We’re Aotearoa’s food science and innovation hub. We’re thrilled to welcome the New Zealand Food Awards in our 150th year. We’ve secured our place on the national map as a creative and exciting city – one with a national role in the future of food innovation. We can’t wait for the award attendees to explore Palmy for themselves! “In Palmy, we’re renowned for our national role in the future of transport, food innovation and sustainability. We have more than 3000 scientists, researchers and innovators, at Food HQ and Massey University, who are all concentrating on growing the value of New Zealand’s food chain,” Mayor Smith says. The New Zealand Food Awards have celebrated New Zealand’s food and beverage manufacturers, focusing on innovation and excellence, since 1987. Powered by Massey University, the awards are open to small and large food and beverage manufacturers, primary food producers, food service providers and ingredient supply companies. This year, the awards have expanded to build on last year’s “Food Hero” theme – developed during lockdown to celebrate the way Kiwi companies responded and reacted to the global pandemic. Palmerston North City Council is sponsoring the Food Hero category, with free entry for the nominations of businesses and individuals.
31 May – Entries close 5-9 July – Judging week 18 August – Finalists announced and tickets to the gala dinner go on sale 18-31 August – People’s Choice voting opens 14 October – Gala dinner and winners announced, Central Energy Trust Arena, Palmerston North, 7pm-11pm For more information, visit www.foodawards.co.nz Facebook: @NewZealandFoodAwards Twitter: @NZFoodAwards Instagram: @NewZealandFoodAwards
Companies can enter each product in up to three categories, with free entry into the Food Safety Culture and Food Hero categories. The Massey University Supreme Award winner is selected from the winners of each of the individual category awards. The awards are proud to be represented by a panel of New Zealand’s leading food and beverage experts as judges from a cross-section of the industry to bring technical, culinary, scientific, and commercial expertise to the awards. Winning products earn the New Zealand Food Award’s quality mark to highlight their innovation, sustainability and excellence to shoppers and industry. The awards programme is made possible with the support of Palmerston North City Council, New Zealand Food Safety, Countdown, AsureQuality, FMCG Business, Cuisine Magazine, KiwiSo, New Zealand Trade and Enterprise, Villa Maria, FoodHQ, The FoodBowl, The FoodPilot, and The New Zealand Institute of Food Science & Technology Ltd.
2021 Categories Product Awards Beverage – Sponsored by the Food Innovation Network Artisan – Sponsored by Cuisine Chilled – Sponsored by Food HQ Below Zero Pantry – Sponsored by Countdown Primary Sector – Sponsored by New Zealand Food Safety Health and Wellbeing – Sponsored by Countdown Novel – Sponsored by KiwiSo Product Lifetime Achievement Award - Sponsored by AsureQuality Business Awards Business Innovation Food Safety Culture – Sponsored by New Zealand Food Safety Community Awards Food Hero – Sponsored by Palmerston North City Council FMCG BUSINESS - JUNE 2021
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[ events ]
FOODSTUFFS EXPO HIGHLIGHTS
The delicious Food Snob display
Robbie Graham, Key Account Manager at Blue Rock
Conor Mercer (National Sales Manager at Arepa); Steve Anderson (Foodstuffs South Island CEO) and Tamara Rubanowski (FMCG Business Head of Content)
The Fresh and Grocery Expo, held at Claudelands Event Centre in Hamilton in May, was Foodstuffs’ largest in its 15-year history, involving 5000 people and more than 300 exhibitors. FMCG Business Editor Tamara Rubanowski caught up with Foodstuffs South Island Chief Executive Steve Anderson at the Expo. Anderson named Blackcurrants as the ‘superfood’ of 2021 and said helping New Zealanders build up their immunity is a key trend resulting from the COVID pandemic. Blackcurrants are loaded with antioxidants and vitamins, which offer plenty of health and functional benefits. Barker’s team launched a new Blackcurrant gel product in a convenient pouch format at the trade show and said that they noticed a huge spike in the sale of their immunity cordials. Another product starring locally grown blackcurrants is Arepa, a wellness drink with proven benefits for brain function and mental clarity. From functional hydration and delicious locally grown delights to
Good Farmers Founder Sven Baker introduced a range of brand new, locally made products.
imported delicatessens and top-secret chocolate innovations, there were plenty of exciting new products to discover at Expo. Anderson said sustainable packaging and eco-friendly cleaning are some of the big trends that he is seeing this year, along with new products for health and well-being and convenience cooking. The Innovation Zone was a new feature at Expo, showcasing the most innovative products fresh & grocery suppliers have to offer. Carefully selected by a panel of judges, the 20 finalist products from 15 different suppliers, fell within four categories: New Consumer Products, Sustainability & CSR Initiatives, Store Solutions and Innovative Packaging Designs & Functionality. MG Marketing (Market Gardeners) was delighted to be part of the 2021 Foodstuffs Expo and humbled to walk away with the award for Best Overall Stand. The team said: “It’s always a fantastic event and an excellent opportunity for our people to rub shoulders with Foodstuffs
“ANDERSON NAMED BLACKCURRANTS AS THE ‘SUPERFOOD’ OF 2021”
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FMCG BUSINESS - JUNE 2021
Continued page 40 >
[ sponsored content ]
BARKER’S IMMUNITY RANGE Barker’s Immunity Syrups are an easy way to add some Vitamin C to your day. Now with four tasty flavours – Unsweetened Blackadder Blackcurrants; Blackcurrants & Boysenberries; Lemon, Honey, Ginger & Turmeric and the latest addition to the range: Orange, Carrot & Echinacea – there’s something for all of the family. They’re made in New Zealand and packed full of fruit and veges, with no refined sugar and are a good source of Vitamin C to support a healthy immune function. Simply dilute to taste with still or sparkling water or enjoy as a health shot to start the day. The Unsweetened Blackadder Blackcurrant Syrup contains 99% squeezed New Zealand fruit. There’s around 1200 Blackadder Blackcurrants in every bottle – a variety of blackcurrant which is a good source of Vitamin C, a natural source of antioxidants high in polyphenols.
NZ Blackcurrant, Blueberry & Honey and NZ Lemon, Honey, Ginger & Turmeric. Made with the goodness of New Zealand fruit and honey, each sachet contains 80mg Vitamin C (200% of the recommended dietary intake). There’s no refined sugar, no added preservatives, colours or flavours and they’re gluten free. Portable and convenient to enjoy on-the-go, straight from the sachet, with no need to dilute in water, Barker’s Immunity Gels can be enjoyed by the whole family – Vitamin C never tasted so good! For more information visit barkers.co.nz or contact 0800 BARKERS
New Immunity Vitamin C Gel Sachets Barker’s have just extended the Immunity range into a gel format in two family-friendly flavours:
[ sponsored content ]
SUJON – BLACKCURRANT BENEFITS MADE IN NZ Sujon Blackcurrant powder is taken by elite athletes globally for its natural recovery and performance benefits. Scientists have found that the unique varieties of Sujon blackcurrants in this powder are rich in anthocyanins and just one heaped teaspoon provides 122% of your RDI of Vitamin C. Vitamin C supports: • Your immunity • Collagen formation • Energy metabolism & tiredness reduction • Keeping your blood vessels structurally sound and functioning General Manager Michelle Manson told FMCG Business: “We have had a fresh new look to promote the health benefits New Zealand Blackcurrants have to offer. “Our Sujon Blackcurrant Superfood Powder will be hitting the shelves of New World and PAK’nSAVE stores in the health and beauty section soon.” For more information and to order the range contact: orders@sujon.co.nz Phone 03 546 4101 FMCG BUSINESS - JUNE 2021
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[ events ]
Amy Law and Brennan Loft of RJs Confectionery
Fresh red Kiwifruit from Zespri
MG Marketing received the Best Overall Stand Award.
teams from across the country. We particularly enjoy the light-hearted atmosphere where we can have a bit of fun. “The event also gives our business the chance to showcase the wonderful fresh fruit and vegetables produced by our Kiwi and international growers, while also sharing our expertise and insights about the produce industry. “We’re already looking forward to the next one.”
Feeding families While many New Zealanders were insulated from the effects of the COVID pandemic, some families have been doing it tough this last year, said Anderson. “Some people have lost their jobs or their overtime, so there is now 40
FMCG BUSINESS - JUNE 2021
The Best Grocery Stand Award went to Quarterpast.
The Innovation Zone at Expo
a lot of focus around feeding those families with dignity. And there’s where some of our focus needs to be - in helping to produce and supply affordable food.” Anderson added that, as part of the company’s CSR policy, every Foodstuffs supermarket is affiliated with a foodbank or similar charity project. At the end of Expo, local food rescue organisation Kaivolution redistributed food from the event to those in need throughout the wider Hamilton community. Anderson said he is incredibly proud of what the Foodstuffs teams have achieved during the recent COVID crisis. So what are his industry predictions for the year ahead? “We need to manage around uncertainty and have strategies in place that are flexible,” says Anderson.
[ events ]
ASIA FRUIT LOGISTICA RESCHEDULED TO 2022 Asia’s premier fresh produce trade show can’t take place in September this year because international business travel remains severely limited. Due to the global coronavirus pandemic, Asia Fruit Logistica is shelving plans for 28-30 September 2021 when more than 800 exhibitors and 12,000 visitors from 70 countries all over the world were hoping to meet in Hong Kong. “It’s simply impossible to promise a large-scale international trade show in such circumstances,” says Karel Heijs, Managing Director of Global Produce Events GmbH (GPE), organiser of Asia Fruit Logistica. “We’re not in the game of promising our exhibitors and visitors something that no one can deliver this year. We all know that things are unlikely to be back to normal before September, and it’s better we say that loud and clear and that we say it right now.” Asia Fruit Logistica has taken place every September in Hong Kong for more than ten years. Over the last decade, the event has attracted many thousands of exhibitors and visitors from all over the world for a week of business meetings and discussions in Hong Kong.
Asiafruit Congress goes online “Asia Fruit Logistica is also about the exchange of business ideas and insights on the fresh fruit and vegetable market in Asia,” says Heijs. “So, we’re very pleased that Asiafruit Congress is taking place online this September 2021. It offers all the great content you get at Asia Fruit Logistica. And it gives all our visitors and exhibitors a chance to connect and network on a great new platform.” GPE also plans to host a networking event on the ground in Hong Kong this September to celebrate Asia Fruit Logistica and to start the countdown for its return in September 2022. The next edition of Asia Fruit Logistica returns to Hong Kong’s AsiaWorld-Expo on 7-9 September 2022, and Asiafruit Congress takes place on 6 September 2022. For more information email: info@gp-events.com www.asiafruitlogistica.com
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The Food Show comes to Auckland at the end of July!
WHAT’S ON IN 2021 JUNE
SEPTEMBER
13-15 FINE FOOD NEW ZEALAND
11-12 CHOCOLATE &
Auckland, NZ
Auckland, NZ
https://www.finefoodnz.co.nz/
https://chocolatecoffeefestival.nz/
22 OUTSTANDING NZ FOOD PRODUCER AWARDS
25 GROCERY CHARITY BALL
Auckland, NZ
https://s2nevents.eventsair.
https://outstandingfoodproducer. co.nz/
COFFEE SHOW
Auckland, NZ com/2021-grocery-charirty-ball/ book/Site/Register
JULY 27 BAKELS NZ SUPREME PIE AWARDS Auckland, NZ www.nzbakels.co.nz 29-1 AUGUST THE FOOD SHOW Auckland, NZ
OCTOBER 5 FMCG BUSINESS MARKETING SUMMIT Auckland, NZ www.fmcgsummit.co.nz 11-13 ANUGA Cologne, Germany
www.foodshow.co.nz
Hybrid event
AUGUST
anuga/anuga-home/
11-12 C&I EXPO
14 NZ FOOD AWARDS
Melbourne, Australia
Powered by Massey University
www.candiexpo.com.au
www.foodawards.co.nz
15
https://www.anuga.com/fair/
Visit the websites and contact the event organisers for further details and updates. To have your event listed in FMCG Business email: trubanowski@intermedianz.co.nz. FMCG BUSINESS - JUNE 2021
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To book your table visit: grocerycharityball.org “Who in the world am I? Ah, that’s the great puzzle.” Lewis Carroll PROUDLY SUPPORTING
OUT & ABOUT
is Morrison received the All Good Co-Founder Chr s And Fairtrade. To Sustainable Busines
Queen’s Service Medal
for Service
Mangere Bridge Primary School performers at the official opening of Foodstuffs’ new DC in South Auckland.
The ecostore team were named Foodstuffs South Island Sustainability Award Winners at the Expo in Hamilton.
bell an O Andrew Camp s. verages NZ CE quiring Allpres nder), Asahi Be ac fou is i s ah res As llp at (A s ced th Michael Allpres s CEO) announ res llp (A n so us Vaughan Magn
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Has your team moved to new premises, or been part of a fun event, great harvest, or promotional activity? Send us your favourite snapshots to be in to win a fantastic Farrah’s Mexican prize pack, including 5 Meal Kits, 5 Spice Mixes, 2 Tortillas and a biodegradable charcoal BBQ grill. Check out Farrah’s website for loads of recipe inspiration. Say Hola to flavour with Farrah’s! www.farrahs.co.nz
Just email your high res image with a caption to trubanowski@intermedianz.co.nz
FMCG BUSINESS - JUNE 2021
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[ convenience & impulse retailing ]
CONVENIENCE & IMPULSE RETAILING EXPO
POSTPONED
Deb Jackson, Managing Editor, C&I NZ
Welcome to the latest issue of Convenience & Impulse Retailing New Zealand (C&I NZ), created proudly in partnership with the New Zealand Association of Convenience Stores (NZACS). We would like to announce that the C&I NZ Expo, due to take place in Auckland on 8-9 September 2021, will be postponed due to increased concerns over the coronavirus. Safa de Valois, Commercial Director of C&I, which hosts the summit in partnership with NZACS, said: “We have a responsibility to our delegates, sponsors and staff, as well as to the wider public, and given the latest outbreak of COVID-19 in Victoria, and how quickly we are seeing states sent back into lockdown and borders closed, we felt it was appropriate to postpone our event until vaccines have been more widely rolled out. “The C&I Expo attracts delegates and stakeholders from across Australia and New Zealand, and the health and welfare of these people, and the wider community is paramount. While it’s disappointing we can’t hold the C&I Expo in 2021 when we had hoped to, we are confident our delegates, speakers, and sponsors will support our decision to postpone.
“We look forward to regrouping in 2022 once these unprecedented events are behind us.” The new dates for the C&I NZ Expo will be 6-7 April 2022.
This month… In this issue of C&I NZ, we’ve got a summer performance overview from IRI in the petrol channel. Summer is a key trading period for the petrol channel, but this year sales remained fairly stagnant with retailers still feeling the impact of the pandemic. Within the petrol channel, Coca-Cola European Partners (CCEP), accounts for more than half of value sales in the non-alcoholic ready to drink space. In this issue, we hear from Steve Fielder, the National Business Manager – Petroleum, CCEP, about the business' latest results and opportunities for continued growth moving forward. We also have a special feature on how petrol and convenience retailers can plan for the road ahead with the rise of electric vehicles. We’d like to thank Pravina Patel from IRI and Steve Fielder from CCEP for their contributions in this issue. Cheers, Deb Jackson
“THE NEW DATES FOR THE C&I NZ EXPO WILL BE 6-7 APRIL 2022.”
PETROL AND CONVENIENCE NEWS PROUDLY BROUGHT TO YOU BY 44
FMCG BUSINESS - JUNE 2021
[ convenience & impulse retailing ]
PREDICTING THE ROAD AHEAD:
HOW RETAILERS CAN PREPARE FOR THE RISE OF ELECTRIC VEHICLES The time is now to start planning for the future of refuelling. The rise of electric vehicle (EV) ownership is set to spark new expectations from customers when it comes to refuelling. EVs are set to change when, where, and how owners refuel, and there are vital questions that are yet to be answered, such as what will people do while they wait for their EVs to charge? A new report from Kalibrate titled The Electric Opportunity: Mapping the habits, preferences, and needs of electric vehicle drivers, explores the changing relationship between customers and retailers, and how best to plan for the future of refueling. Oliver Shaw, CEO, Kalibrate, says: “Refuelling an EV isn’t like refuelling a traditional vehicle – it can take significantly longer. Is there an opportunity for retailers to offer customers new experiences while they wait? “Retailers know EV adoption is increasing, but without clarity of what the future will look like, many are hesitant to accelerate their plans for the future.”
So, what does the future hold? Kalibrate conducted a survey of 1,433 consumers and 520 retail business stakeholders across 10 countries and discovered several key takeaways for retailers looking to prepare for increased EV adoption. It found that while 86% of retailers say EVs and EV charging will be a future revenue-driver for their business, 55% think the market is too unpredictable to begin making concrete plans, and 52% have not begun developing an EV strategy. “Retailers know EVs are the future of transport, and that charging represents a big opportunity. Yet the uncertainty of the future is stopping them fully embracing the market. Inevitably, it’s the early adopters that will reap the biggest rewards,” says the report. EVs are the future of transport, but questions remain: what infrastructure do retailers need as drivers switch to electric vehicles? How will refuelling habits change? What exactly do EV drivers look like today, and how will that change in the future?
Of the retailers surveyed, more than half (57%) said that they’d like to better understand the characteristics and behaviours of EV drivers, and 67% said that their EV strategy would likely change over the next three years. Of the consumers surveyed, 83 per cent of current EV drivers purchased their vehicles within the last two years, 54% intended to buy within the next two years, and 28% intend to buy within five years. It’s clear that retailers can’t simply transpose the habits and preferences of fuel drivers onto an EV driver audience and to make the most of the opportunity, they need to better understand EV customers’ behaviour. Kalibrate says: “58% of drivers often visit shops or businesses that offer EV charging, even if they’re not actively looking to charge their car. Some 59% of drivers tend to spend more at shops or businesses that offer EV charging, and 67% of drivers would think more positively of a shop that offers it. Retailers also should understand where and how often EV drivers refuel, with 51 per cent saying that they recharge at least once daily. “When it comes to where they’d like to see charging points, 61% of EV drivers would like to see them at their place of work, followed by 57% at shopping venues, 43% at hospitality venues, 42% at motorway service stations, and 41% at existing fuel stations.” An interesting point to consider is most respondents said they are likely to shop and spend money when taking a 30-minute break to charge their EVs on a journey – suggesting providers of charge points could profitably invest in grocery and other offerings. For example, 60% would grab a drink or a bite to eat, 42% would shop for essentials like groceries, and 29% would shop or browse shops to pass the time. By comparison, most of these activities come in higher than checking work emails (36%), browsing social media (33%), or catching up on the news (25%). Bearing all this in mind, it’s easy to see why some retailers still have questions before launching their EV strategy, but the market is evolving quickly, and the time is now to start planning for the future of refuelling. FMCG BUSINESS - JUNE 2021
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INNOVATION BOOSTS STAGNANT SUMMER SALES Innovation, premiumisation, and larger pack formats have been the key growth drivers in the petrol channel over the summer period.
New research from IRI has shown that the petrol channel remained stagnant this year across both the MAT and summer quarter. COVID-19 dominated much of 2020 adversely impacting the petrol channel with consumers opting to shop large format stores. Consumer mobility was restricted, and more people worked from home, resulting in fewer commutes and trips to the channel. Summer is generally a critical time of year for the petrol channel accounting for 27% of yearly sales, however, sales this year were stagnant with only +0.8% growth on last year, closely mimicking MAT growth of +0.9% (MAT to 28.02.21). It’s important to note that the summer 2021 period included 46
FMCG BUSINESS - JUNE 2021
[ convenience & impulse retailing ] Christmas and New Years Eve, with the Christmas week accounting for driving 59% of the season’s overall growth. The period also included two Auckland level three lockdowns, and Pravina Patel, Insights Consultant, Solutions & Innovation at IRI, said that COVID-19 lockdowns have shown to have an adverse impact on the petrol channel. Patel says that summer was largely a season of refreshments, eating and indulgence, with growth led by ice cream, bread, personal care, and household items compared to summer 2020. “Kiwis spent more on beverages, ice cream and snackfoods this year, helping these categories gain share of edibles,” she said. Ice cream sales accelerated over the period, growing +2% versus a decline of -0.7% last year. The ice cream category saw units contract and volume increase over summer, indicating that consumers are purchasing larger pack sizes. The top two take home ice cream NPD to be launched over summer were Ben & Jerry’s Cookie Dough S’Wich Up and Ben & Jerry’s Punch Line. “Innovation and larger pack formats are driving value in ice cream. ‘Take home’ ice cream grew a massive +65.0% on last summer with NPD driving almost 90% of the growth realised this summer,” says Patel. Food categories became more significant to the channel over summer, representing 37.5% of total sales (+2.6pts above MAT share) and achieving two-thirds of overall growth. Food dollar growth achieved this summer was primarily driven by the ready to drink (RTD) category, which realised an additional $3.0m in sales. The RTD category growth softened this summer to +4.8% from +5.6% growth in the prior year but there was an improvement on the MAT decline. “The on-the-go channel saw the RTD category picking up share of ‘stomach’ this summer driven by hot drinks and energy drinks.” Hot drinks delivered an additional +$1.7 million in sales compared to last year and energy drinks delivered an additional +$1.1 million in sales. Volume also grew positively at +5.9% and +6.0% respectively. NPD in chips launched this year accounted for 10.4% of sales and delivered more than 100% of chips dollar growth. Four of the top five NPD in chips launched over the summer came from Bluebird. “Snacking is an essential part of summer, with innovation and premiumisation driving value gains this year. The chips segment is a key driver of category growth (+10.0% on YA). Again, NPD launched within the past year is driving segment growth,” says Patel. Medicinal saw significant share gains of non-food spend this summer (+3.2pts), with petrol stations becoming a onestop shop in an accessible location. Triple digit growth and share gains for the medicinal category were driven by nicotine replacement therapy (NRT), while the personal care and household categories saw the decline from the previous year reverse this summer. “NRT sales continue to see an upward trend in sales. Over summer the segment delivered an additional +$7.6 million compared to last year, helping the medicinal category lift share from tobacco (-1.5pts) and gain a total +3.2pts of nonfood spend.” Source: IRI Summary of Petrol Channel Performance – Summer 2021 (13wks to 28.02.21)
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[ convenience & impulse retailing ]
COCA-COLA EUROPACIFIC PARTNERS UNLOCKS GROWTH IN P&C Coca-Cola Europacific Partners has officially launched and its first quarter results have indicated strong post pandemic recovery in Australia and New Zealand. Coca-Cola European Partners’ acquisition of Coca-Cola Amatil closed last month, creating Coca-Cola Europacific Partners (CCEP), the new business unit, which includes Australia, Indonesia, Papua New Guinea, New Zealand, Fiji, and the Pacific Islands. Reporting its first quarter 2021 results, the company highlights strong post pandemic recovery in Australia and New Zealand where lockdowns have eased. Results in these markets were a stark contrast to Europe where conditions remain challenging. Looking specifically at the Australia, Pacific, Indonesia (API) region, revenue in Australia is up 8%, Pacific is up 11%, and Indonesia is down 3%. Damian Gammell, Chief Executive Officer, said: “Trading conditions remained similar to the last quarter of 2020, with renewed restrictions in many of our markets impacting the away from home channel. We have been able to keep on winning, gaining value share in-store and online, through our ability to adapt, strong execution and continued focus on our core brands. “While the pandemic persists and the precise nature and timing of the recovery is unknown, there is optimism ahead. Indeed, the strong post pandemic recovery in two of our new markets, Australia and New 48
FMCG BUSINESS - JUNE 2021
A journey of sustainability Sustainability is a constant evolution for CCEP and the business has made some significant and market leading steps in its journey. • CCEP recently announced its 2020-2040 sustainability ambitions, including net zero carbon emissions by 2040. • In 2020 the business met its recycled plastic ambition and achieved using 100% recycled plastic in all its bottles under 1L and water bottles across all sizes. • CCEP is supportive of a well-run, not for profit Container Return Scheme in New Zealand, working with government, industry and other stakeholders to help create a best-in-class scheme. • The business now has a reduced, low, or no sugar variant in all its popular brands and has plans to take this further with a target of 20% reduction in sugar grams per 100ml by 2025 in NZ. • Through the Coca-Cola Foundation, it has provided a grant to local environment group ‘Sea Cleaners’ worth more than $300k every year since 2018.
What were the highlights in 2020? Zealand, highlight the positive impact of increased mobility, which will in time come to our other markets. “In Europe, although conditions remain challenging, we are encouraged by an improving trend across the quarter, especially in GB, with good at-home consumption. Early and decisive in-market actions taken by our colleagues, our disciplined investments in the longer term and our focus on driving efficiencies throughout our business, collectively ensure we will emerge stronger than before. “We are delighted that the acquisition of Coca-Cola Amatil has closed and we are now Coca-Cola Europacific Partners. Bringing together two of the world’s best bottlers provides exciting growth opportunities and an even stronger strategic relationship with The Coca-Cola Company. We will go further, together, creating value for shareholders and a better, more sustainable future for all stakeholders.”
New Zealand outlook Within the petroleum channel, CCEP accounts for more than half of value sales in the non-alcoholic ready to drink (NARTD) space in New Zealand. Carbonated soft drinks, water and sports drinks are CCEP’s strongest performers within the channel and the company is also seeing growth from energy drinks off the back of Monster Energy and the flavoured milk category, where its Barista Bros brand is the top performer. As such an important supplier to the petrol and convenience (P&C) channel, Steve Fielder, National Steve Fielder Business Manager – Petroleum, says there have been many highlights for the business over the past 12 months and that there are plenty of opportunities for continued growth in the year ahead. “The P&C channel is important not only to CCEP, but to New Zealand as a whole. It’s important for us to be a valued partner to our P&C customers and one of the ways we do this is by providing a much loved and trusted range of beverages for their shoppers across the many refreshment occasions.” Fielder highlights CCEP’s energy drink portfolio and says there is a significant opportunity within the performance energy segment. “Performance energy is a rapidly growing segment in the energy category globally, so there is a great opportunity to introduce this to the New Zealand market and deliver further growth for the energy category,” he says. “We have continued to build on our accelerating energy portfolio with the recent launch of Monster Super Fuel – a range of performance energy beverages that not only deliver the energy kick you need for
• Winning several awards at the 2020 NZACS Industry Awards Event (Supreme Supplier, Best Head Office Service and Support, Best Service to Stores, and Best Delivery Service). • Delivering another year of value growth to the P&C channel despite the challenging retail environment. • Despite suffering more than a 30% revenue drop during the first lockdown, we were able to keep all our people employed and paid in full throughout the turbulent year. • We repaid the $7.2m we received from the COVID-19 wage subsidy in full. • We met our recycled plastic ambition and achieved using 100% recycled plastic in all our bottles under 1L and our water bottles across all sizes. • Being accredited as one of Australasia’s Best Employers for the fifth straight year.
physical activity, but also the hydration benefits through electrolyte delivery. “We are also transitioning our Barista Bros range to a new recipe with ‘No Added Sugar’. We’ve worked hard to give Barista Bros a great new taste as we know eating and drinking less sugar is important for many people. Reducing the sugar in Barista Bros is one of the many things we are doing to help people make choices that are right for them.” Throughout 2020, there was a shift in consumer behaviour with shoppers returning to the convenience channel to pick up on the go grocery items to avoid busy supermarkets. As lockdowns have lifted, the channel has been able to retain a lot of those shoppers and the focus for 2021 is to unlock further opportunities. “We’ve seen the resurgence of the P&C channel as a true convenience destination for consumers as they begin to value convenience and locality more – largely driven by the need/preference to stay within their communities and avoid congested environments,” says Fielder. “This behaviour for many has stuck. We have also seen the shape of some beverage categories evolve due to changes in consumption occasions. ‘In-home’ occasions have become stronger in the P&C channel while some ‘out of home’ occasions are challenged on the back of workplace transitions, travel, and tourism, and general ‘on the go’ occasions changing quite significantly. “In general, the beverages category has been relatively buoyant since lockdown lifted in 2020 and the category seems to be in good shape. Our focus for 2021 will be very much continuing to work closely with our retail partners to unlock further growth opportunities for the P&C channels and to keep shoppers excited with our ever-evolving NPD pipeline.” FMCG BUSINESS - JUNE 2021
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If you own or work in independent grocery or a convenience store, service station, dairy, corner store or mini-mart, C&I NZ is the one event you should not miss in 2022.
SAVE THE DATES ADMISSION IS FREE! OWNED BY:
C&I Media NZ Pty Ltd and organised by Interpoint Events Pty Ltd P: 800 455 785 E: exhibition@candiexpo.co.nz W: www.candiexpo.co.nz
Association Partner
Reconnect - Renew - Rebuild
6 - 7 APRIL 2022 Convenience & Impulse New Zealand Expo 2022 The Cloud, Auckland
The Convenience & Impulse New Zealand Expo brings together New Zealand convenience retailers and suppliers from all banners and brands to gather for two days of education, networking and business building.
For more information visit www.candiexpo.co.nz
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