FMCG Business February 2023

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L E A D I N G

I N D U S T R Y

N E W S

FEBRUARY 2023 - Volume 10 - No 1

IN STORE NOW!

PLUS! LEADERS FORUM n PACKAGING & DESIGN n FUNCTIONAL FOODS & DRINKS n NEW ZEAL AND’S L ARGEST FMCG AUDIENCE

contents FEBRUARY 2023

UP FRONT 4 EDITOR’S NOTE 6 INDUSTRY NEWS

32 42 28

8 BEST IN SEASON Fresh produce update

SPECIAL FEATURES 11 LEADERS FORUM 2023 22 PACKAGING & DESIGN INNOVATIONS 28 BREAD WINNERS Category news and IRI data 32 FUNCTIONAL FOODS & DRINKS What’s new and driving sales

38 FEATURE Thinking green: sustainability in the supply chain 42 LEGAL ADVICE What is required from businesses selling ‘organic’ products?

EVENTS 43 NEW WORLD TAUMARUNUI OPENING 45 OUT & ABOUT Share your snaps and be in to win!

CONVENIENCE & IMPULSE RETAILING

REGULARS

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9 COVER STORY Ferrero’s new Nutella® Biscuits set to expand snacking portfolio

NZACS Recapping the year that was and looking forward to 2023

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10 PROFILE Intent Group becomes Argon & Co

Z ENERGY Z Energy goes from strength to strength

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35 FMCG BUSINESS PRODUCT OF THE YEAR AWARD This month’s finalist provides fuel for the hustle

ON THE SPOT Tourism brings normality back to South Island convenience

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GOOD BUSINESS

NPD Creating a point of difference with fresh and inviting food-to-go

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OBIL OIL NEW ZEALAND M Mobil’s customer-centric focus crucial to success

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METROMART Adaption, focus and investment key for MetroMart

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INDUSTRY NEWS

37 PROFILE Rocket fresh Beef Patties, Meatballs and Mince – we have lift off!

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editorial

Expert tips for 2023 We hope you had a chance to take a little break over summer to recharge your batteries.

I must admit, I couldn’t switch off completely and kept wondering what new challenges 2023 will throw at us. With an ongoing pandemic, supply chain disruptions, severe weather events and labour shortages, we could be in for another bumpy ride. A third of the global economy will be hit by recession this year, the head of the International Monetary Fund said, warning that the world is facing a tough year.

To help you tackle the challenges that lie ahead, this special edition of FMCG Business brings you expert tips and predictions for 2023, in the Leaders Forum on pg 11-21.

Despite the global downturn, primary industry exports in New Zealand are set to reach a record high of $55 billion in 2023, according to MPI. Horticulture export revenue is expected to grow 5% to $7.1b, while strong demand for processed food and other products is expected to drive 3% growth to $3.3b. Seafood exports are forecast to increase by 4% to a record $2b.

Our team is keeping an eye on Costco’s expansion plans in New Zealand and the evolution of Supie, which has grown rapidly to service 30,000 shoppers with its online offering.

Use of social media for online shopping will likely increase this year as platforms like Facebook, Instagram, TikTok and Pinterest improve their social commerce capabilities.

We may also see a shift towards shorter and more transparent supply chains, regional agricultural structures and focus on domestic markets. With discretionary spending under pressure for many households, the challenge for retailers will be to attract shoppers with affordable prices.

We’d love to hear from you if you have new product launches or other exciting news to share. Please keep in touch and join our daily conversations on LinkedIn, Facebook, or Instagram.

We hope you enjoy this issue.

Tamara Rubanowski trubanowski@fmcgbusiness.co.nz www.fmcgbusiness.co.nz

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ISSN 2382-1663 (print)

ON THE COVER Nutella® is bringing the long-awaited Nutella Biscuits to New Zealand. Already iconic in Italy and the rest of Europe, Kiwis can now enjoy the world’s favourite choc-hazelnut spread in a biscuit. Read the full story on pg 9.

FMCG BUSINESS IS PROUDLY ASSOCIATED WITH food& grocery COUNCIL NEW ZEALAND

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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 © 2023 - C&I Media (NZ) Ltd

DELICIOUS PLANT-POWERED PROTEIN. SO IT’S EASY TO BE

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news

Mars NZ appoints new General Manager Mars New Zealand has “I’m thrilled to be joining announced the appointment Mars New Zealand,” says Emily. of Emily Dowling to the role of “The team here has always had General Manager. an outsized impact on Mars’ As General Manager, Emily business globally, particularly will oversee the growth and on the creative side with truly development of the Mars ground-breaking campaigns Petcare, Mars Snacking and like My Hooman, our pet Mars Food portfolios, including adoption platform. They’ve household favourites WHISKAS®, also demonstrated best in M&M’s® and MASTERFOODS™ class agility in managing supply while driving the company’s chain challenges in recent purpose: a better world years, and I’m committed to tomorrow starts with how we driving that consistency for do business today. our retail partners and “Emily’s blend of commercial consumers.” Emily has creativity and purpose-driven relocated with her family and leadership will put her in great dog to Auckland. stead in New Zealand,” says Emily’s appointment follows Deri Watkins, Europe Regional the departure of Pete Simmons President, Mars Petcare. who has decided to leave “She has an exceptional Mars after 16 years with the record in partnering with business. Rather than explore Mars NZ has appointed Emily Dowling as the new GM. customers for growth, and further overseas opportunities driving the distinctiveness of with Mars, Pete and his family our brands, and I look forward have decided to stay locally in to seeing her impact on the New Zealand. In his five years New Zealand market.” as General Manager, Pete set Emily has more than 18 years of about leading a programme experience in the FMCG industry to refocus the business on across Australia and Europe. growth priorities, partnering She joins the New Zealand with customers across the Leadership Team from Mars Petcare Australia, where she has served different channels, establishing digital commerce in the business, as the Marketing Director since 2018. In 2021 she was recognised as and developing a strong talent offer - all whilst leading the one of the top 50 Chief Marketing Officers in Australia. business through Covid.

“Emily’s blend of commercial creativity and purpose-driven leadership will put her in great stead in New Zealand”

New MD for Mondelēz NZ Mondelēz New Zealand has revealed that Managing Director Cara Liebrock has been promoted to CEO of Perfect Snacks, based in San Diego California. Perfect Snacks is one of Mondelēz International’s recent Bars acquisitions.

Cara and her family will relocate to San Diego, California a little later in the year, but Cara herself is currently spending some time there now to get a feel for the business.

Cara has had nearly 20 years’ experience with Mondelēz International across a variety of Category, Sales and Operations roles.

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FMCG BUSINESS - FEBRUARY 2023

Bevan Adin has been appointed as Managing Director for Mondelēz NZ.

She moved over from the Canadian business unit in 2019 to assume leadership of the New Zealand business, further broadening her general management capabilities.

Bevan Adin has been appointed to replace Cara as Managing Director New Zealand. He will start in the role from 1 March 2023. Bevan has had over 20 years’ experience in the FMCG sector in General Management, Sales and Finance roles.

He has worked at Beam Suntory, Coca-Cola Amatil and Goodman Fielder and in Australia, the UK and New Zealand.

CHECK OUT WWW.FMCGBUSINESS.CO.NZ

profile

Happy Birthday Hellers!

Hellers is celebrating 38 years of being New Zealand’s butcher - Todd Heller opened his first butchery in Christchurch in 1985.

Inspired by his world travels, Todd began offering Kiwi’s flavours they’d never tried before, and they quickly fell in love with Hellers. Since then, Hellers has continued to grow and now supply their delicious products throughout New Zealand, from supermarkets, cafes, restaurants and more.

Hellers is driven by a passion for delivering both classic flavours and innovative new tastes to Kiwis. Over the years Hellers has kept up with market trends, extended their range and is one of New Zealand’s leading brand of sausages, deli meats, bacon, ham, continental meats and so much more!

Leigh Hart came on board as a spokesperson in 2004 and continues to bring his cheeky and witty personality to the Hellers brand. Leigh said: “In my time with Hellers one thing that has remained constant is the sense that I am still dealing with a family-owned business.

I never tire of people asking if I really went to all those countries for the adverts or airport security jokingly asking whether I have any sausages or bacon on me.

On more than one occasion I have purposely put a packet of bacon in my jacket, just to get the last laugh! I’m proud to be associated with this amazing company.”

Staying true to its values Hellers has continued to support Kiwis, the key being their Sausages for Schools programme, which hit a major milestone last year after donating it’s two millionth sausage, raising a massive $4 million dollars for New Zealand schools. Not only do they support Kiwi schools, the iconic brand also has a strong relationship with the City Missions in Auckland and Christchurch.

Hellers couldn’t do it without the support from their customers.

Hellers Chief Executive, Christine Cash said: “thank you to all our customers for their ongoing support and commitment to supplying

“Hellers are here to get Kiwis’ lives sizzling all year round” New Zealanders with their favourite Hellers products.”

Whether it’s sausies, salami, burgers, or your favourite Christmas hams, Hellers are here to get Kiwis’ lives sizzling all year round. They truly have a product, meal or recipe inspiration for any occasion to satisfy New Zealander’s rumbling tums!

Hellers is proud as punch to be New Zealand’s butcher and looks forward to continuing to supply trusted quality products to the market for years to come. Here’s to a very happy (not yet 40) birthday!

Thank heavens for Hellers.

FMCG BUSINESS - FEBRUARY 2023

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fresh produce

Best in season Back to school time means the year begins in earnest and the lunchbox routine sees shoppers seeking easy, healthy favourites such as summerfruit, which are in plentiful supply.

Berries are still available, the last of the strawberry crop along with juicy blueberries, and the bright tones of blackberries and raspberries make for a colourful display in the fruit aisle.

Cooling down on hot summer days calls for melons, the tasty trio of rock melon, honeydew melon and watermelon are all at their prime this month.

Also in good supply are fresh courgettes. Sometimes known as zucchini, courgettes are a versatile Mediterranean vegetable. Keep your displays of these topped up, especially ahead of the weekend.

Garlic Popular in kitchens around the globe for centuries, garlic is a member of the allium family, which also includes onions, chives, shallots, spring onions and leeks.

Most of New Zealand’s commercial garlic is grown in Marlborough from January to November.

New Zealand garlic is distinctively fresh and juicy with pungent clean white bulbs. Marlborough garlic is never cool-stored, but will keep for nearly a year in a cool, dark, well ventilated place. Pukekohe garlic is available in December.

What to look for: Look for firm well-shaped cloves. New Zealand garlic will still have roots - if a bulb is bald, with no roots, then it is imported. Garlic is never labelled since it sheds its skin if a label is applied to it.

Storage/handling: Garlic cloves dry out if separated so ensure each bulb is whole. Keep in a cool, dry place away from the sunlight. Avoid placing in plastic bags, or storing under refrigeration.

Avoid storing next to ginger as it can dehydrate garlic.

Nutrition: For most people garlic is eaten only in small quantities. Garlic contributes to the flavour of many dishes rather than making a nutritional contribution.

lunchboxes, passionfruit are at their most fragrant and sweet at this time of year.

All passionfruit sold in New Zealand is grown here with the majority of the crop coming from Northland, the Bay of Plenty and Taranaki. The 2023 season is looking like another great harvest with plenty of passionfruit expected in stores between February and April, with ongoing supply through until September.

What to look for: Passionfruit are at their ripest when the smooth purple skin starts to wrinkle. Look for skin that is unblemished and – if still firm, allow to ripen a little more for added sweetness.

Storage/handling: Store at room temperature. The strong outer skin of the fruit keeps its contents fresh for several weeks.

Nutrition: Passionfruit are a good source of dietary fibre, and a source of Vitamins C and E.

Sweetcorn Sweetcorn is a true summer vegetable, at its sweetest after a hot few months, with the crop at its best between January and April.

What to look for: Choose sweetcorn with fresh green husks and soft yellow to light brown tassels – the darker the tassels, the riper the sweet corn. Look for cobs that are rounder and fatter at the end. The kernels should be plump, pale and tightly arranged.

Storage/handling: Sweetcorn is highly perishable so only buy quantities that can be sold quickly.

Store at 0°C with a relative humidity of 90%100%. Sweetcorn is ethylene sensitive so store them separately from ethylene-producing fruit and vegetables. Display under refrigeration but don’t remove the husks as they provide good protection from dirt and dehydration.

Nutrition: Sweetcorn is a good source of fibre as well as being high in B Vitamins.

Passionfruit The sub-tropical passionfruit is a Kiwi favourite, perfect just scooped out and eaten or added to a wide range of sweet and savoury dishes. Another popular addition to 8

FMCG BUSINESS - FEBRUARY 2023

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cover story

Ferrero’s new Nutella® Biscuits set to expand snacking portfolio

New Nutella® Biscuits joins Nutella B-ready, Kinder Happy Hippo and Kinder Tronky in the biscuit aisle.

2023 is set to be the most delicious year yet, with Nutella® bringing the long-awaited Nutella Biscuits to New Zealand. Already iconic in Italy and the rest of Europe, Kiwis can now enjoy the world’s favourite choc-hazelnut spread in a biscuit.

The perfect treat to make endless Summer days shared with friends and family even better, Nutella Biscuits feature a creamy heart of Nutella encased in a delicious crunchy biscuit.

Azzurra Puricelli, Marketing Manager for Nutella said: “Nutella Biscuits take the traditional biscuit to a new delicious level, combining a crunchy golden base filled with a creamy heart of Nutella. Nutella Biscuits have been hugely popular around the world, so we’re excited to give Kiwis a new way to enjoy their favourite chocolate hazelnut spread as a delicious, shareable snack.”

As the Biscuit category continues to grow and people snack more often, Ferrero is focused on leveraging its much-loved brands to break into new segments and categories. The result is new products that give fans more delicious ways to enjoy their favourite treats and new opportunities to bring new shoppers – particularly families – to the category.

Ferrero’s expanding sweet packaged goods portfolio is gaining speed in Europe and around the world, with local consumers set to benefit, as the most popular products come down under.

The new Nutella Biscuits product joins Nutella B-ready, Kinder Happy Hippo and the recently launched, Kinder Tronky on New Zealand supermarket shelves.

Azzurra continued: “Shoppers are increasingly looking for everyday moments of indulgence, whether at home, with family and friends or on the go. We’re focused on meeting these needs, bringing successful new products for our iconic brands to the local market and giving consumers new ways to enjoy their favourite flavours.”

Nutella was born in 1964. The unique chocolate hazelnut blend of Nutella is made with a meticulous selection of high-quality, sustainably sourced ingredients and an exacting, artisaninspired production method. Nutella has grown to become the world’s most popular choc-hazelnut spread, loved by millions around the world, known first for its iconic jar and now available in both bar and biscuit form.

Nutella Biscuits can be found in the biscuit aisle of major grocery stores.

Nutella Biscuits come in a resealable bag, perfect for sharing (RRP $6.00).

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profile

Intent Group becomes “With this integration, we have access not only to a greater team of experienced consultants but also the world’s best methodologies and digital capability.”

ANZ Argon & Co, the global management consultancy that specialises in operations strategy and transformation, is delighted to announce that Intent Group has become Argon & Co in New Zealand.

Intent Group bring a strong team of experts, specialising in operational transformation, and manufacturing excellence across a broad range of industries as well as deep knowledge of the local market. Its integration reinforces existing capability in New Zealand (NZ) and enhances the ANZ business, with a combined team of over 100 consultants across Sydney, Melbourne, and Auckland.

Paul Eastwood, Managing Partner of the ANZ business states: “We have been working on the New Zealand integration for the last few months, our teams have led the way and are already in the mindset of one business. Intent Group has an incredible history and reputation in the local market and a legacy we are honoured to inherit. Together we begin a new chapter with the goal to build a leading global management consultancy specialising in operations strategy and transformation.”

Intent Group founder, Ian Walsh becomes Partner of the NZ business and says: “Argon and Co NZ is now a reality, with a

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FMCG BUSINESS - FEBRUARY 2023

significant team focused on operational transformation. Our purpose remains on making a difference for organisations of all sizes and locations throughout NZ and drive outstanding performance outcomes. With this integration, we have access not only to a greater team of experienced consultants but also the world’s best methodologies and digital capability.”

Chris Foord, Associate Partner of Argon & Co NZ, added: “It has been a lot of fun getting to know the Intent team over the last five months and engaging both existing and new clients together to support them deliver.

Together we are truly better.”

About Argon & Co Argon & Co is a global management consultancy that specialises in operations strategy and transformation. Its expertise spans the supply chain, procurement, finance and shared services, working together with clients to transform their businesses and generate real change. Its people are engaging to work with and trusted by clients to get the job done.

Argon & Co has offices in Paris, London, Abu Dhabi, Amsterdam, Atlanta, Auckland, Chicago, Dusseldorf, Hong Kong, Lausanne, Melbourne, Mumbai, Riyadh, São Paulo, Singapore and Sydney. www.argonandco.com

LEADERS FORUM

2023 SPONSORED BY

FMCG Leaders Forum

A voice for the wider industry Raewyn Bleakley Chief Executive, New Zealand Food & Grocery Council If, as is likely, 2022 goes down as one of the more eventful years in the history of the Food & Grocery Council and the industry, then 2023 is looming as one of the most significant.

After what has been three tough years of unexpected and mostly unwanted surprises courtesy of Covid and the resulting economic impact compounded by a volatile international landscape, three things seem certain for this year: • The drive to continue the industry’s sustainability progress will continue and may intensify as we see more detail on Government requirements. This includes the Container Deposit Scheme and improvements to kerbside recycling. Along with a plastic packaging product stewardship scheme (requiring suppliers, retailers, and consumers to take responsibility for collecting and dealing with plastics), and the Australasian Recycling Label (an on-pack scheme to help consumers recycle correctly), these will continue to be an important part of our work.

• The Grocery Industry Competition Bill will progress, and if the Government delivers to its timeframes, this vital legislation will be enacted by the middle of the year. This will enable the Code of Conduct and the Grocery Commissioner, and we should see more detail on both later in the year.

• Inflation will continue to cause challenges and put more pressure on work in other areas as budgets are stretched.

The Food & Grocery Council will play a leading role in these areas, as it has over recent years.

Our members’ work on sustainability issues has been New Zealandleading, and this will step up further this year with collaborations with The Packaging Forum and the Australian Packaging Covenant Organisation.

Our work over the past decade to highlight competition issues was the forerunner to the Commerce Commission’s Grocery Market Study and the resultant legislation, which offers the opportunity to cement important changes for the industry.

All this work and our objectives clearly establish us as a voice not just for our members, but also for the wider industry.

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Though we are required, first and foremost, to promote and advance the interests of our members when we liaise with government and statutory bodies and positions on legislation, regulations, by-laws and policy, in doing so as the peak industry organisation we are also influencing and championing the whole supplier industry.

With the Government set to announce a ministerial reshuffle early this year, and Commerce and Consumers Affairs Minister David Clark standing down, there will be someone new in charge of the Grocery Industry Competition Bill, and we will be watching to see if there are any changes in emphasis as a result.

Coupled with the upcoming election that will deliver either a government of a slightly different make-up to what we have now, or one that is completely different (it’s hard to see it delivering another single-party majority), that could introduce some interesting dynamics looking into 2024.

Making and reinforcing relationships with key ministers and opposition spokespeople will be critical work the Food & Grocery Council will actively pursue.

“Inflation will continue to cause challenges and put more pressure on work in other areas as budgets are stretched.”

FMCG Leaders Forum

Finding balance in 2023 Craig Irwin Managing Director, IRI New Zealand Uncertainty. Feels like this could be an appropriate word for yet another year. Being an economist must be one of the hardest jobs right now – the world is still a pretty challenging place to predict with any degree of accuracy given the number of uncertainties/ dynamics at play. Have we hit peak inflation yet? How many countries will dip into recession in 2023? Will New Zealand be one, or narrowly avoid it?

Will there be any resolution to the war in Ukraine? What does China’s post pandemic recovery path look like and how will this fuel economic activity around the world?

None of this is within our control. What we can control is how we respond. The most consistent predictions I hear are that the first three quarters of 2023 are likely to be challenging based on the need to wrangle inflation.

Consumers, despite their sentiment/optimism being extremely low, are proving resilient. We are yet to hear of a significant leap in mortgage defaults and there is a view that many are still holding on to savings generated during the Covid pandemic. The counterbalance here of course is that, if inflation doesn’t show signs of easing, the Reserve Bank will continue to push rates until it does.

So, I would expect a cautious and conservative start to 2023, with many of the market dynamics we exited 2022 with still in play.

Specifically, consumers actively managing expenditure – and in our industry, that means making choices of what goes in the trolley and what doesn’t.

With this in mind, my key theme for the coming year would be: Balance and focus. Balance the short term need to respond to current price-sensitive consumers with a laser like focus on the key initiatives that will accelerate your growth in the mid-longer term - Q4 2023 to 2024 and beyond – as economies rebound and rebuild.

Failure to balance both the short and long term is likely to lead to underperformance.

to remain savy and cautious over the first three quarters of 2023, as the economic environment remains uncertain. Continue to proactively manage pack/price architecture to establish where your business may be leaving value on the table or not responding well enough to consumer needs. Think about where your products are positioned, ensuring you are not stuck in middle ground between value seekers and those heading towards premiumisation.

And don’t forget the detail; use analytical tools to test your elasticity versus that of your competing product sets, finding your upper and lower threshold limits.

2. Building for the long term Focus only on the short term at your businesses peril. What made your business great – your original purpose and mission will still hold true with consumers over time. As you execute the short term, make sure there is real business effort on the mid-long range plans that honour your mission, solving real consumer problems and will ultimately help you win.

But get focused and be choiceful. What NPD will you back? What new segments will you target? What current initiatives are working for you that you can fuel even more to accelerate growth? Make choices and be ruthless with initiatives that are not working and tying up resources.

Make sure you are also investing in brand building, now. Consumer memories are short and need to be reinforced. If your sole focus is on the short term and price/promotion type initiatives, it is unlikely your brand(s) will be top of mind when the economic rebound begins which will leave your business lagging competitors.

So, in summary, another ‘interesting’ year ahead, but one that is ultimately very manageable albeit not necessarily easy! 2023 will be the year of getting back to good business disciplines – the right balance between delivering in the now/short term and investing for the future.

Find that balance and make sure any distractions/non-performing initiatives are quickly managed up or out so that resources can be prioritised to deliver the biggest impact.

“2023 will be the year of getting back to good business disciplines.”

1. Managing the short term This focus largely hasn’t changed since I wrote my thoughts in this publication at the same time last year. Consumers are expected

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FMCG Leaders Forum

NZ shoppers looking for “trusted brands” amid global uncertainty Lance Dobson Market Leader, NielsenIQ, New Zealand After another turbulent year, it’s time for us to reflect, learn and move forward with fresh eyes and a renewed focus into 2023.

New Zealand’s record inflation was at the core of many conversations and decisions across the retail industry in 2022, coupled with supply chain and raw material cost challenges. These major influences are reflected in the rapid value growth felt in the industry during 2022, with corresponding volume declines as consumers paid closer attention to their overall grocery basket.

And while sentiment across both consumers and suppliers is uncomfortable and many challenges endured this year will undoubtedly carry across into next year - and possibly be accentuated - there is certainly growth to be had.

Consumer sentiment New Zealand consumers are feeling the pinch. NielsenIQ recently reported that 89% of New Zealanders say their weekly shop costs more than it did last year and 84% said they are concerned with rising grocery prices - significantly higher than the global average of 57%.

Adding to the challenges that will undoubtedly carry across into 2023 is the largest mortgage rate increase in New Zealand’s history.

This additional financial pressure will be increasingly visible as more and more fixed rates are released in the coming months.

But it is not all doom and gloom. There is always opportunity for growth, even in the most uncertain of times - it is knowing where to find it and how to capture it.

So, where’s the growth?

Trust will be at the core of any success in 2023, from both a supplier and retailer perspective.

Looking across the various NielsenIQ data sets - both locally and globally - these are the key considerations we feel will put you in good stead to leverage potential growth: From a retailer perspective: 1. S tay in your lane. Be clear on your offer. Don’t try to be all things to all consumers.

2. L ean in to consumers’ focus on ‘saving money’ – like the PAK’nSAVE message of “don’t bother with collectibles, save money instead.”

3. U nderstand how and why shoppers are switching brands in response to cost pressures and most importantly, how this differs by demographic groups.

4. D on’t treat each category or brand the same… they are not.

From a brand and manufacturer perspective: 1. S tay in your lane - know your brand and product strengths and play to them.

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“Understand how and why shoppers are switching brands in response to cost pressures” 2. E nsure the reason for ‘being’ for your product. What is it the shopper loves and how can you ensure their trust and loyalty outweighs any price-pay decisions.

3. Get a deeper knowledge of pricing and promotion activity and the role of pack sizes in consumers’ value equations. Understanding and differentiating your pack price architecture will be key to meeting their needs.

4. Whether you’re at the value or premium end of the spectrum, it’s more critical than ever to get your proposition right.

5. As a result of increased caution across all buyer demographic groups, brands need to justify why consumers need to spend money on their brand.

Find the sweet spot between meeting consumer needs without overwhelming their weekly budget. Kiwis are re-evaluating their priorities, leading to a change in shopping behaviour. Out-of-home experiences continue to transition in-home with some permissible indulgence, tap into that.

In summary, the one thing people are looking for in uncertain times is trust. Brand trust, and retailer trust. Communicate well with your customers and be empathetic to their needs and challenges at this testing time. Those who dig deep to truly understand and match their customers’ biggest needs, will find growth.

FMCG Leaders Forum

2023 will keep us innovating Spencer Sonn Managing Director, Woolworths New Zealand 2022 has proven to be another challenging year with Covid-related disruptions impacting our team, our operations and our communities.

The arrival of Omicron put pressure on our team and our supply chain, and at times that tested our ability to meet the needs of our customers.

Other challenges across the sector continue to keep us thinking about the needs of communities and customers as we operate in the increasingly complex environment that is retail grocery.

Rising inflation has driven up the cost of living for Kiwis and we continue to work hard to keep our prices as affordable as possible. This is an ongoing focus as we strive to sensitively balance the needs of our growers and suppliers facing their own cost increases, and the needs of our customers.

The weather has proven difficult at times for our growers and reminded us that climate change is here. We continue to work closely with our growers and suppliers to ensure our strong relationships are delivering the best outcomes for their businesses and our customers. The opening of our Green Star rated, stateof-the-art temperature controlled, Auckland Fresh Distribution Centre this year was a highlight. It has brought all our North Island produce operations into one location and means we can take the best possible care of our produce all the way from farm to fork.

Our incredible team of 21,000 have again focused on delivering the best experience for our customers each and every day. I’m humbled by their dedication as we work to make Kiwi lives a little better every day.

We were proud to announce our new collective employment agreement in November, which sees our store team receive an average 19% wage increase over the next two years. We also introduced new benefits including pandemic leave, an allowance for working unsociable hours, extensions to bereavement leave and earlier sick leave eligibility to better reflect the reality of working in retail grocery today.

The opening of seven new stores in 2022 has seen us grow our presences in local communities throughout Aotearoa. We celebrated with our new neighbours in Waiata Shores, Pinehill, Balclutha, Herne Bay, Belfast, Taupō South, and Alexandra as well as renewing more than ten of our existing stores.

Our digital and ecommerce capabilities have further grown in 2022 alongside our customers’ demand for the convenience and ease they offer. Our direct to boot service, where we bring customer orders directly to car boots, is now available in 19 stores and over 50 stores have dedicated pick-up areas for online customers.

Our journey towards achieving our ambitious sustainability commitments remains a key focus for our business. We are working

“We are working hard to further reduce our emissions, to send zero food waste to landfill from our stores and to make sure our Own Brand packaging is recyclable or reusable by 2025.” hard to further reduce our emissions, to send zero food waste to landfill from our stores and to make sure our Own Brand packaging is recyclable or reusable by 2025.

We also kicked off a pilot phasing out single use plastic produce bags in 20 stores, and we’ll continue to work towards further phasing out ahead of the ban taking place on 1 July 2023. In 2022, we were proud to donate more than $7 million in food, funding and sponsorship to local communities through our partnerships.

We also remain acutely aware of the role we play in helping make food and groceries affordable, even as we face unprecedented levels of cost price increases. We remain committed to playing a positive role in improving the competitiveness of New Zealand’s retail grocery market and the Government has been clear what their expectations are around this. As we’ve done from the start of the Commerce Commission’s market study, we will continue to take an engaged and constructive approach.

The signing of the first multi-store customer for our new wholesale business unit in September was an important milestone. The Grocery Industry Competition Bill has now been introduced into Parliament and we are currently reviewing it.

It’s a privilege to be a part of over 200 Kiwi communities, and that comes with responsibilities we don’t take lightly. I’m sure that 2023 will continue to challenge our operations, our thinking and keep us innovating, and our whole team is looking forward to meeting those challenges and helping deliver a better tomorrow for Aotearoa.

FMCG BUSINESS - LEADERS FORUM 2023

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FMCG Leaders Forum

Putting everything we’ve got into being customer driven Chris Quin CEO, Foodstuffs North Island

2022 was a massive year for New Zealanders. We were able to meet in person, we could take our masks off and adjust to life with Covid. Then the number one issue impacting Kiwis right now came along and affected every household – inflation. With the cost-of-living crisis expected to continue throughout 2023, keeping the cost of doing business down and helping our customers find value will remain a very big focus for Foodstuffs North Island.

Everyone has to buy groceries and we’re very respectful of the privilege that comes from being in every community across New Zealand.

We expect managing tight household budgets and increases in interest rates will see customers continue to look to cut back on their discretionary spend, like groceries. Between May and December 2022, Foodstuffs held food price inflation below supplier cost increases, something I’m very proud of. This year we’ll continue showing up for our customers by delivering value for money and helping them find value when they shop with us.

Our industry is always changing, and where there’s change, there’s opportunity. Having been on a study tour to North America in 2022, we got good insights on areas we can be more customer focused on in New Zealand. Linked to the search for value, frozen food is a growth area, so expect more innovation in that category and bigger frozen and chilled sections in stores. A trend that started as a result of lockdowns, people are also looking to replicate an out-of-home experience at home, for both cost reasons - and for the comfort of entertaining at home, rather than being out in crowds. The opportunity here is to provide more warm, ready-to-eat meals and some premium items.

More New Zealanders are now shopping online than what they did pre-pandemic. We know we’ve got more we can offer here,

and we will do more throughout 2023.

For the last three years we’ve all had to innovate and improvise as factors outside of our control impacted global supply chains. I’m picking 2023 will see the beginning of a return to more normal levels of product availability in our stores, as our supplier partners and our teams have worked hard to develop sourcing strategies that work in the new reality.

The grocery industry is going to see some changes in 2023, with a supplier code of conduct and a grocery commissioner appointment due.

As well as the outcomes of the Grocery Industry Competition Bill, there’s a range of new regulation coming that may change how we do things in future, including how we pay our people and suppliers, and where and when we sell alcohol and tobacco. We’ll be constructively engaging and working towards outcomes that deliver for our stores, teams and customers.

It was our 100th birthday in 2022. Being around for 100 years means we have a deep responsibility when it comes to making a real, positive difference to our communities and our environment. As part of our commitment to be ‘Here for NZ’, in 2022 we partnered with community organisations opening social supermarkets in Kaitaia, Tokoroa, Whangārei and Otūmoetai. Social supermarkets offer individuals and whanau experiencing food insecurity the opportunity to shop in a supermarket-style environment with groceries usually being free of charge, or for a koha, bringing dignity to the experience.

In 2023 we’ll be doubling down, opening many more social supermarkets across the motu.

We’re here to make sure New Zealanders get more out of life, it’s our reason for being, so in a nutshell, in 2023 we’ll be putting everything we’ve got into being customer driven - whatever 2023 throws at us.”

“Where there’s change, there’s opportunity”

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FMCG Leaders Forum

Feeding the South Island and creating successful communities Mary Devine CEO, Foodstuffs South Island February 2023 marks one year for me in the CEO role at Foodstuffs South Island. I’ve loved getting to know the team and learning more about the full picture of what we do, how we do it, and the why behind it all.

This year we designed a refreshed strategy for the co-op that resets our purpose and vision for the next three years. Our purpose gives all our teams a shared north star: together, we feed the South Island and create successful communities.

Every part of this purpose is important. The word ‘together’ recognises the fact that as a co-op, everything we do is connected and everyone has a part to play. No one operates alone in a co-op, and we’re stronger for it.

‘Feed the South Island’ is literally what we do – and in our part of the world, it can sometimes be a challenging job. We feed the South Island no matter what, travelling hundreds of kilometres every week to get essentials everywhere from sunny Nelson to Stewart Island.

As a part of nearly every community and one of the South Island’s largest employers, we believe our purpose goes beyond just providing food. We’re here to create successful communities, and we want to see every aspect of our South Island communities succeed: our team members and their families, our customers, local community groups, our supplier partners, and our operators as individual business owners. We value being at the heart of our communities, like we’ve always been, to make the South Island a better place - for today and for the generations to come.

As a 100% NZ owned and operated co-op, we’ve made a commitment to be Here for New Zealand, which means delivering on four social promises: to provide New Zealanders with access to healthy affordable food, be leaders in sustainability, provide our people with meaningful work and support our communities to thrive. These promises will continue to help guide us in how we create and grow successful communities in 2023 - and the Foodstuffs South Island Community Trust, which was established in 2007 to help our communities and people thrive through funding grants, will play a significant role in enabling us to do this.

The year ahead looks busy and exciting for Foodstuffs South Island, our co-operative members and their teams, our transport and supply chain network, and the suppliers we partner closely with. We’ve got lots of work to do over the next three years to bring our strategy to life… but 94 years in business gives us some pretty incredible foundations to help us get there. We’re proud of the passion and experience of our owner operators, the strength of our brands, and our longstanding supplier partnerships, and we’ve carefully chosen the priority areas in our strategic plan to

“We designed a refreshed strategy for the co-op that resets our purpose and vision for the next three years” make sure we’re continuing to provide for South Islanders through a rapidly changing industry, increased competition, and new customer preferences.

The vision for our co-op is clear. We want to be the South Island’s most loved and trusted retailer, positively impacting our customers’ lives every day. It’s a lofty goal that inspires us all and reminds us of the incredible opportunity we have to make a difference for South Islanders.

We believe that truly earning the love and trust of customers is what will enable our co-op to keep growing and providing for South Islanders for many years to come. We also believe that everything we do should go further than just satisfying customers – we want to actively make a positive impact on our customers’ lives, every day.

I’m proud to be part of our co-op team, and I’m looking forward to seeing what we deliver for South Islanders in 2023.

FMCG BUSINESS - LEADERS FORUM 2023

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FMCG Leaders Forum

Future proofing to remain competitive Andrew Mates Managing Director APAC/LATAM, Americold

Nobody could have predicted the impact of the Covid-19 pandemic on global supply chains, caused primarily by lockdowns, labour shortages, freight issues and excessive customer demand fuelled by hysteria.

While many could only see the doom and gloom of the situation, my mind flashed back to school and our studies of Albert Einstein. He was quoted as saying “In the middle of difficulty lies opportunity”, and that is how I viewed the situation, as an opportunity to take a fresh look at the management of supply chains and more importantly, how Americold operates and how to future proof our organisation.

With customers at the core of everything we do at Americold, our focus is on connecting manufacturers to retailers with temperaturecontrolled logistical solutions, and to keep New Zealanders fed through consistent flows of product onto supermarket shelves.

What are we doing to achieve this?

Firstly, we have supported our customers in moving from a just-in-time inventory model to a just-in-case model, where higher levels of stocks are held to reduce the risk of stock shortages due to future disruptions and crises. Optimised packing of pallets has had a twofold effect at Americold, saving valuable storage space and reducing the number of required pallets, which has a positive flow on effect to the environment. Visibility via our i3PL inventory management system is also key, as it allows both Americold and our customers real-time insights into the movement of inventory and potential issues, therefore reducing the risk for our customers and ultimately to the supply chain.

Secondly, Americold realised the importance of employee

retention with labour shortages. We have doubled down on investing in employee longevity through our global in-house training programmes to provide our employees with career development opportunities within our organisation. This includes programmes such as our renowned Americold Leadership Academy, in which employees are provided with a three-part course across a 12-month period that develops their leadership skills using real company case studies and internal collaboration and insights from the Senior Leaders of the organisation who kindly give their time to be involved in coaching the next leaders of Americold. At the end of 2022, we launched ‘The Igloo’, our online selfpaced learning platform that allows employees to develop their skills in their areas of choice. Our ultimate goal is to retain the rich industry knowledge and experience that our employees have. I am testament to that, having started at Americold in 1996 as a casual picker and have progressed through the ranks to now be the Managing Director of APAC/LATAM. Finally, Americold is investing in solar power in New Zealand to counter the rising global energy costs. The average refrigerated warehouse uses approximately 25 kWh of energy per square foot for cooling costs annually. In fact, globally, cold storage organisations are the third-highest consumers of industrial energy. Through this investment, we are future proofing our organisation to remain competitive and to reduce the cost burden on our suppliers and ultimately to New Zealand families.

To learn more about Americold, visit our website www.americold.co.nz

“Our ultimate goal is to retain the rich industry knowledge and experience that our employees have.”

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FMCG BUSINESS - LEADERS FORUM 2023

Global Leaders in Temperature Controlled Warehousing & Logistics

For all of your temperature controlled supply chain needs • 18 sites across Australia & New Zealand • Ambient, Chiller, Freezer Temperature options • i3PL Inventory Management

www.americold.co.nz

FMCG Leaders Forum

Watch out for 2023 Lew Bentley Head of Strategy, Shopper Marketing Agency Energi

The general end of year chit-chat seems to agree that 2022 was a tough one and that everyone is very glad it is drawing to a close.

The Covid hangover has left us with a sore head of rising inflation, scary mortgage rate increases, poor KiwiSaver returns, tumbling house prices and a weak dollar.

If you’re an employer you’re probably paying more for less as we deal with quiet quitting, high salary expectations, steep recruitment costs, and people not wanting to work at work. The cost of goods is generally increasing and it seems harder and harder to plan ahead.

The High Streets around the country are filling up with “For Lease” signs. Bank managers and the IRD are increasingly pulling the plug on struggling companies.

So then, what about 2023?

By all accounts business and consumer confidence are very bleak (now similar to GFC levels); anticipating a year that is same but worse than 2022. In a word: recession.

With an election on the horizon in 2023 the most recent polls show that there is a clear swing from Labour’s kindness economy to a more ‘roll-your-sleeves-up’ blue pragmatism.

There is also that reliable monitor of our nation’s mood coming up: the Rugby World Cup. Can the men follow the glories of the Black Ferns and lift our collective spirits? Or are we doomed to another cycle of national heartache? If 2022 is anything to go by I suggest you don’t hold your breath.

witnessed over the past few years is likely to run out of steam as more expensive treats give way to necessity. “Best” will increasingly trade down to “Better” or “Good”.

Category managers are likely to try and maintain profitability by pressuring supplier margins and calling for higher levels of support to generate shopper demand.

Low price operators like Pak’n Save and Costco are likely to attract more costconscious shoppers. Meanwhile, Woolworths and Foodstuffs will be coming up with more and more creative ways to say ‘everyday low price’.

The escalating cost of living is becoming a social issue that will be a major theme in the 2023 election.

Apparently, there was an increase in demand for food banks by over 30% in the second quarter of 2022.

“If you’re an employer you’re probably paying more for less”

What does this all mean for the world of FMCG? The obvious implication is that more people will be watching their pennies and seeking ways to economise as it becomes hard to make ends meet. Our already high rate of sales ‘on special’ are likely to increase further. A lot will be sticking to a budget more than before and they will be looking for keen price points in store. Value packs will look more and more attractive.

On the other side of the coin, the growth in premiumisation

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A silver lining?

Rescuing this article from the depths of despair I hope there will be some positive things to look forward to in 2023 as well. Four things I would like to see from FMCG marketers in 2023 are: 1. Give people affordable treats – In tough times simple treats help make life bearable.

2. Bust-out escapes – When we’re under pressure people typically respond with a fight, freeze, or flight response. Escape break holidays wrapped up in promotional guise will be all the more compelling in 2023.

3. Lighten the load – Empathetic marketing that recognises the pressure of the times and shifts away from the current fascination with making things easier (as in low effort), to easier to make ends meet, will earn attention.

4. Actually reward loyalty – How about turning those database driver supermarket cards into genuine rewards for loyalty? It is time they gave back with more tangible value benefits.

So, 2023 looks something like a Pandora’s Box. All the troubles of the world. And hope.

FMCG Leaders Forum

Looking ahead to 2023 Kathie Bartley and Nicola McConnell Outstanding NZ Food Producer Awards Founders and Directors Rising input prices, labour shortages and record inflation are lining up to challenge food producers unlike anything for decades.

No matter the size of the business - from large national manufacturers to small single person operations and start ups – no food business will escape the shifting sands of 2023. In this environment every producer will have a sharp eye on cost, scrutinising every expense for value and effectiveness.

In this light, the Outstanding NZ Food Producer Awards – which celebrates its seventh year – has a record for delivering value to producers and driving sales for medal winners.

No-one says it better than food producers who have entered the Awards. Kelli-Jo Walker, founder of The Wild Fermentary said; “The Outstanding NZ Food Producer Awards medal stickers have helped us secure a number of new suppliers and are a great way to communicate credibility to customers.”

While, David Herrick founder of Foundry Chocolate said: “Winning gold medals at the Outstanding NZ Food Producer Awards in 2020 opened opportunities and started conversations with retailers that were invaluable to our little company...”

We believe creating a high impact food awards that deliver sales for entrants comes down to three key components; judging with integrity, feedback and marketing.

Judging with integrity: All products entered in the Outstanding NZ Food Producer Awards receive a fair judging from a panel of the country’s finest food industry experts – all of whom are experienced food judges.

Since beginning in 2018, Lauraine Jacobs has been head judge.

With more than 50 years as one of New Zealand’s leading food writers and judges, Lauraine oversees a robust judging process.

Judging is conducted blind, meaning all products are assessed by judges without identifying brand information. This ensures all judges consider every product fairly.

Marks are awarded for the product and its ‘wow’ factor and for the producer’s sustainability practice. Every judging panel completes a judging assessment with 85% of the marks awarded for aroma, taste/ flavour and appearance, specialist sustainability judges award 10% with the final 5% allocated to brand story or ‘wow’.

Feedback: Every entry receives feedback with suggestions to enhance or improve where appropriate.

As we value judging transparency, results announcements include details on total number of entries and the number of gold, silver, bronze and no awards. Additionally, each year the head judge provides a report on judging and trends.

Marketing the Awards: The Outstanding Food Producer Awards devote significant resources to marketing across the year, ensuring

“All products entered in the Outstanding NZ Food Producer Awards receive a fair judging from a panel of the country’s finest food industry experts – all of whom are experienced food judges” winning producers receive the sales jump they deserve. The most significant marketing tool is the Outstanding NZ Food Producer Awards medals – products which are awarded a medal are eligible to wear a medal on packaging for three years.

In addition to the publicity and promotion achieved around the two annual winners’ announcements – that of the medal winners and the Champions - marketing continues across the year. Each month the ‘Outstanding Eats’ newsletter profiles winners and products to a database of more than 15,000 foodies across New Zealand. www.outstandingfoodproducer.co.nz is regularly updated and each month new recipes showcasing winning products are added. ‘Winner Dinners’ and cooking classes showcasing winners’ products are organised across the year, creating an additional tool for producers to promote their produce to engaged foodies.

All of these factors create a credible Awards programme. We recommend that any producer considering spending part of their limited marketing budget on entering Awards review the investment against these factors to ensure they are maximising their investment.

Spending marketing dollars wisely has always been important; but it’s bound to take on a new significance in 2023.

FMCG BUSINESS - LEADERS FORUM 2023

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Packaging & Design INNOVATIONS What does it take to stand out from the crowd and create award-winning packaging and product designs?

We talked to local experts to find out how they help to ignite and elevate brands – and what to look out for in 2023.

Onfire Design: Igniting brands

“Getting the branding and package design right is vital to success.”

Sam Allan, Owner at Onfire Design 22

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From cereal to snacks, beauty products to RTDs, dairy to pet food, you’re hard-pressed to find a category Onfire hasn’t worked on.

“We pride ourselves on being able to apply the right measure of creativity wherever it is needed.

It’s the process we love, not necessarily the category.

That’s why you see such an eclectic range of clients in our portfolio – as they say, variety is the spice of life,” says Sam Allan, Owner at Onfire Design.

While many of these projects have either won or are in the running to win major design awards, Sam says it’s great to get peer recognition but that’s not his motivation.

“We’ve won awards around the globe but it’s doing commercially successful work that gets us out of bed every morning. The team lives and breathes it. It’s great to be able to have complete faith in the design

Onfire’s history catalogues a range of clients who changed, not for the sake of change, but to drive action.

We aim to make brands more visible, more differentiated, more competitive – on time, on budget and on fire.

ONFIRE207471

To ignite your brand, call Sam Allan on 021 608 204 or sam@weareonfire.co.nz

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(ESG) element into packaging with an aim to address various environmental challenges, according to GlobalData. Amid mounting pressure from customers, investors, and governments, they are making forward-thinking moves to improve the world by offering ethical, sustainable purchase choices to consumers, the data and analytics company said.

GlobalData’s poll conducted in April 2022 highlighted that nearly 35% of companies have changed their behaviour in the last 12 months to achieve ESG goals.

GlobalData disruptive Tech Practice Head Kiran Raj said, “As we step into a post-COVID-19 pandemic world, consumers are reassessing their purchases and manufacturers are aligning their products to the 4Rs of sustainability – Reduce, Reuse, Recycle, and Recover – given the target date for various ESG standards edge closer. team. We’re seeing clients make a shift away from older agencies to more nimble teams like Onfire that offer better returns.”

If successful brands are some of the most valuable commercial assets, it stands to reason that they should set themselves apart in a crowded marketplace, communicate credibility and instil trust. Getting the branding and package design right is vital to success.

“At Onfire, we take all the values and features that make up an identity and translate them into visual elements that clients and their customers love. It’s more than packaging – it’s all about communication and storytelling”.

To ignite your brand, call Sam Allan on +64 21 608 204 or www.weareonfire.co.nz

Sustainability and innovation Increased pressure for sustainability has led to a growing interest in innovation. Consumers expect and are willing to pay more for - sustainable products.

This is especially the case with packaging.

FMCG companies are increasingly pledging to bring the environmental, social and governance 24

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“Manufacturers are aligning their products to the 4Rs of sustainability – Reduce, Reuse, Recycle, and Recover” Kiran Raj, GlobalData disruptive Tech Practice Head KitKat’s recyclable paper packaging trial KitKat, one of the world’s most popular confectionery products, is introducing recyclable paper packaging as a pilot test for the brand. The recyclable paper packaging will be available for a limited time for its four-finger bar in Australia, across Western Australia, South Australia and Northern Territory.

Continued on pg 26 >

profile

Welcoming the MICE back As the saying goes, you don’t know what you’ve got till it’s gone.

So, as a purely personal reflection, 2022 stood out for the welcome return of doing business in person. (MICE, by the way, is the tourism industry’s term for Meetings, Incentive travel, Conferences and Exhibitions.)

NZ’s packaged goods sector is a close-knit one, and attending the Food and Grocery Council’s conference last year brought home how much we’d missed out on those personal interactions and chance conversations that add so much to doing business.

Other conferences attended included the Go Green Expo and – a new one for me – the Convenience and Impulse Expo held in October. Focused on the needs of owners and operators of service stations, convenience stores, dairies and the like, the C&I event made a particular impression.

It can be easy to overlook the degree to which last-minute choices dictate sales success, and how important impulse and convenience really are. It was unexpectedly heartening to think of the choice and freedoms we perhaps took for granted returning to our everyday shopping.

The year ahead of course is forecast to be a tough one economically, and it’s tempting to think this might squash the impulse or frivolity in people’s purchase decisions. Experience, however, suggests otherwise. People always crave convenience and choices

Winning Sales by Design Great design gets noticed, makes a connection and increases sales. If that’s what you’d like, contact Jenny McMillan 021 193 2141 or 09 970 9892 jenny@brotherdesign.co.nz www.brotherdesign.co.nz

are frequently made right at the point of sale. Meaning, with the right design, there’s every reason to look forward with confidence.

Here’s to a successful 2023.

Jenny McMillan, Brother Design jenny@brotherdesign.co.nz 021 193 2141

feature plastic, and alternatives to plastic packaging. Other recent innovations are Smarties, which introduced recyclable paper packaging for all its confectionery products globally in 2021 and Quality Street, which introduced recyclable paper wrappers in 2022.

Turning a blind eye to design stereotypes

Nestlé will produce more than a quarter of a million KitKat bars wrapped in paper in an exclusive partnership with Coles, a local retailer. The pack has a QR code which people can scan to have their say and give valuable feedback on the new paper packaging.

Packaging experts at Nestlé’s Confectionery Research and Development Center in York, UK adapted and tested the paper, while scaling it up for use on modified high-speed flow wrapping equipment.

Louise Barrett, Head of the Nestlé Confectionery Product Technology Centre in York, said: “We are exploring different types of alternative packaging solutions for our confectionary products. For KitKat, the challenge was to find the right paper packaging solution with a high level of barrier properties to adequately protect the chocolate. We had to maintain the perfect balance between the iconic crispy wafer and smooth chocolate that people know and love, whilst at the same time ensuring the packaging is recyclable in the paper stream.”

The paper packaging pilot for KitKat is another positive step in Nestle’s plan to use innovation to meet its packaging commitments. Nestlé has set a goal to reduce the use of virgin plastics by a third by 2025, which includes using less plastic, recycled

“Our passion is packaging, clever ideas, and purpose-driven creativity” Laura Feavearyear, Creative Director at Creative Jam

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It’s not every day you hear the term “visually impaired” and “graphic designer” in the same sentence, but that is exactly what Laura Feavearyear has been championing herself as for the past 12 years.

Laura is the creative director at Creative Jam, a small design studio specialising in FMCG brand design.

She says: “I was born with a rare eye condition leaving me short-sighted, which has never stopped me from chasing my dream. I believe my disability gives me a unique perspective on the world as well as being able to tap into my other senses to find empathy and emotion for my clients and their customers. This is my passion and every single day I take immense pride in the 36 brands I have been fortunate to be on a journey with both here and abroad.

Notable brands that Laura and her team have created are Dose & Co, Good Cocktail Co, Daily Good Immunity Shots, Frula Beauty, Fonterra’s Nurture Probiotics, and many more.

Her clients have collectively netted over 30 awards in 2022 alone with 11 clients awarded medals in the FMCG Business awards. “Success to Creative Jam is walking through a supermarket and seeing customers with our beautiful work in their trollies or disrupting consumers buying behavior when they pick up a new brand to try. Our goal is to design simplistic, modern FMCG brands that hit the sweet spot for maximum retail impact. Our passion is packaging, clever ideas, and purpose-driven creativity,” says Laura.

For more information contact Laura on ph 021 809 807 or email laura@creativejam.co.nz .

d plistic an im s n ig s e eet is to d hit the sw t a th Our goal s d n act.

MCG bra com imp E d n a il modern F ta as aximum re clever ide , g in spot for m g a k ion is pac ve.

Our pass en creati iv r d e s o and purp r avearyea Laura Fe Director.

Creative

hello@creativejam.co.nz | @creative_jam_nz

[ category insights ]

Bread Winners What’s driving sales in the popular bread category?

Wraps, bagels and pita breads are super popular with shoppers, offering versatile lunchbox and meal solutions.

We talked to local suppliers to find out what’s new and trending.

Farrah’s keto-friendly, low-carb options Upper Hutt based and family-owned company Farrah’s, New Zealand’s largest and leading manufacturer of wraps and flour tortillas, has seen the latest additions to their Low Carb range be a hit with consumers.

Farrah’s Brand Manager, Courtney Butcher, says their first ketofriendly wrap and the first low-carb tortilla available in New Zealand supermarkets gives consumers even more choice.

“They are perfect not only for those following a low-carb or Keto lifestyle, but for anyone wanting a lighter meal without compromising on taste and quality.”

“Consumers are continuing to seek out ‘better for you’ options and the demand for these products is testament to this. Our Low Carb Keto

“Consumers are continuing to seek out ‘better for you’ options” Courtney Butcher, Farrah’s Brand Manager 28

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category insights Wrap in particular ranked as the second highest selling product in the wraps category in the last four weeks to 25/12/2022 (IRI),” says Butcher.

“The feedback from consumers has also been overwhelmingly positive.”

The year ahead will see Farrah’s continue to focus on embracing data and consumer insights to drive innovation and crafting new products that Kiwis love.

Farrah’s wraps and tortillas are proudly made at their world class ‘Bread Quarters’ in Upper Hutt, using only the finest ingredients and baked the traditional way – over an open flame. Backed by the Farrah’s Promise, the company guarantee a range of delicious wraps and tortillas that won’t crack or split when rolled.

For more information and a range of inspiring recipes, visit www.farrahs.co.nz. For orders, please contact your Twin representative.

Breadcraft celebrates 80 years of innovative baking Breadcraft is celebrating 80 years of baking delicious bread products for Kiwis! Their secret to success – a passion for innovation and a family-based business that moves with the times.

Based in the Wairarapa, Breadcraft supply

Breadcraft received the Health & Wellbeing Award for their Gluten Free Sourdough & Super Seeds Wraps at the NZ Food Awards 2022.

innovative Rebel Bakehouse wraps and delicious, hand-crafted Cottage Lane artisan bread to supermarkets, food service and hospitality customers in New Zealand and beyond.

Low carb, full flavour!

category insights

It was one of the first bakeries to bring artisan European style loaves such as Ciabatta and Sourdough to New Zealand, using a unique San Francisco born 80 year-old sourdough starter bug.

“Their innovation focus has accelerated recently with their launch of Rebel Bakehouse wraps in 2019 positioning Rebel as the clear No.2 wraps brand with over *85% share of gluten-free wraps,” says Kerrie Brown, National Sales Manager. They’ve doubled down on their commitment to producing New Zealand’s best gluten free wraps and the NZ Food Awards judges obviously felt they’ve achieved this, awarding them the ‘Health & Wellbeing’ Award at the 2022 NZ Food Awards for their Gluten Free Sourdough & Super Seeds Wraps.

Brown says: “2022 saw Rebel Bakehouse Bagels hit the market, rising in just nine months to *23.1% share of the market*. The range has it all with innovative flavours such as Low Carb Max and Sourdough along with firm favourites Three Cheese, Sesame Seed and Original and their latest

limited edition, Brioche Bagels. Fully-sliced, with ingredients right through the dough, 4-5 health star ratings, high impact packaging with inspiring recipe imagery and great in-store execution have all come together for success.”

So what about the next 80 years? “With our team, anything is possible! We’re committed to delivering top of the range, healthy innovative products that boost our consumers wellbeing. We need to keep our big ideas under wraps but, watch this space for our next innovation”, says Brown. *IRI Scandata: NZ Grocery, Quarter to 11/12/22 $ Market Share

Check out our website rebelbakehouse.co.nz for creative recipes or contact your Alliance Sales Rep for sales queries.

A story with full flavour A family-owned company of Mediterranean origins, Giannis Pita Bread rose from honest, humble beginnings to become one of New Zealand’s largest specialised flat bread manufacturers and a major supplier to the New Zealand food industry. It is a tale of Kiwi ingenuity and authenticity.

Giannis Michaelides set sail from Cyprus in 1966. He arrived in Christchurch with only the clothes he stood in, a wonderful smile and a healthy appetite for leavened bread his mother had taught him to make.

But Giannis brought with him more than just his love of pita, he introduced to our pantries other wholesome, ethnic flatbreads from exotic lands and earlier times.

The Giannis brand was established in 1991 and continues to go from strength to strength 31 years later.

Giannis produce and supply an extensive range

“Giannis produce and supply an extensive range of Pita Bread, Wraps, Pizza Bases, Tortilla and Naan bread products” Simon Rangihaeata, Giannis Sales and Marketing Manager 30

FMCG BUSINESS - FEBRUARY 2023

category insights of Pita Bread, Wraps, Pizza Bases, Tortilla and Naan bread products that are available in the New Zealand market, including gluten free options.

“We are always looking closely at the market and consumer trends and will continue to develop new products to meet the market supported by an extensive marketing programme across Giannis social media platforms,” says Giannis Sales and Marketing Manager Simon Rangihaeata.

“This kind of honest-to-goodness philosophy, Kiwi No. 8 wire mentality, and refusal to compromise the integrity of the products is fundamental to the way the Giannis family will continue to run the business in 2023.”

For more background on the Giannis story go to www.giannis.co.nz https://www.facebook.com/GiannisPitaBread/ https://www.instagram.com/giannisbreads/ For sales enquires contact Giannis Sales and Marketing Manager Simon Rangihaeata 021 854 091, simon@giannis.co.nz

BREAD AND BAKERY SMALLGOODS Dollars (000s)

Dollars Growth % YA

Total Bread

$394,756

2.3%

White

$144,954

7.0%

Light Grain

$130,192

-0.0%

Heavy Grain

$66,679

1.4%

Wholemeal

$46,166

-4.0%

Fruit

$6,765

7.3%

Total Bakery Smallgoods

$190,233

6.9%

Wraps*

$47,229

7.6%

Buns/Rolls

$46,935

8.8%

Other Smallgoods*

$35,681

14.9%

Crumpets

$21,210

2.0%

Muffins

$19,621

-1.0%

Pita Breads

$14,499

-0.1%

Pikelets

$5,058

7.4%

* denotes value AND unit growth > +2% Source : IRI Market Edge Grocery MAT to 25/12/22

The FMCG Business team endeavours to produce a monthly snapshot of category news and highlights, based on information from participating clients, plus a table of the freshest data available at time of print. If you wish to contribute news for upcoming category reports, please contact trubanowski@fmcgbusiness.co.nz

Giannis-Trade-Ad-2020-11.pdf

1

6/11/20

12:24 PM

MADE IN

NZ

Giannis Breads are created from our own authentic Mediterranean family recipes using only the highest quality ingredients, making them...

New Zealand’s Favourite Flat Breads.

Email: simon@giannis.co.nz www.giannis.co.nz

Honest food, made well.

Functional foods & drinks Kiwi shoppers have started to prioritise investing in their health, reveals the 2023 Trend Report from United Fresh. Demand has surged for products high in beneficial nutrients and products that offer to improve the planet’s health. In the fruit and vegetable aisle alone, 35% of consumers surveyed towards the end of last year reported increasing their spend on fresh produce for health reasons.

Wellness beverages, probiotics and upcycled plant-based products will also play a big role in the food and beverage industry this year, according to the International Food Information Council (IFIC).

Consumers will seek benefits like energy, mental health and gut health in their beverages this year, says the IFIC. Probiotics will expand beyond the yoghurt section, showing up in chocolate, ice cream, juices, sauces and nutrition bars, predicts the IFIC. Beverages are another delivery system for probiotics and prebiotics.

Many ingredient suppliers have been responding to consumer interest in probiotics during the past few years.

“Consumers will seek benefits like energy, mental health and gut health in their beverages this year”

profile

Good Sh*t - the world’s first Pre + Probiotic Soda made right here in New Zealand You’ve probably spotted the white can with the smiling poop already. That’s Good Sh*t and it’s the soda that’s good for your insides.

Available in five flavours, Good Sh*t Cola, Citrus, Berry, Tropical and Ginger has been popping up everywhere — in your local Countdown, New World, Farro Fresh and cafes and restaurants all over New Zealand!

The just introduced newest member to the Good Sh*t Pre + Probiotic soft drink family is Good Sh*t Tropical, which tastes like a ripe mango with a wave of passionfruit and a hint of sea breeze. It’s summer without the sunburn and sunshine in a can. Good Sh*t Tropical is low in sugar, high in fibre and packed with 5-star fruitiness. It delivers exactly what it says on the can. It’s really Good Sh*t for your insides.

Most adult humans don’t get anywhere near enough fibre in their daily diets. But liquifying fibre so it doesn’t taste like your drink is spiked with sawdust is pretty tough! And so our solution was Acacia gum — an all-natural, prebiotic fibre that helps keep you regular, on the regular. Because every can of Good Sh*t delivers a third of

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FMCG BUSINESS - FEBRUARY 2023

your daily fibre needs. But most importantly, Good Sh*t tastes really amazing —like real soda, minus the nasties.

Good Sh*t is made right here in Aotearoa, by a bunch of mates called Poptimist who just want to bring a bit of fun to your guts.

Available now at: goodshitsoda.com — and from our friends. Check out our Facebook and Instagram: @goodshitsoda to see the retailers and stockists keen to share Good Sh*t with you too.

But in the end, every great input is measured by the output. Good Sh*t in. Good Sh*t out. Join the movement and get on the Good Sh*t today.

For more information contact Rebecca Caughey ph 021 886 024, or email rebecca@poptimist.co.nz

category insights “Functional drinks and fermented foods are popular with shoppers in New Zealand,” says Tamara Rubanowski, Head of Content at FMCG Business. “We are seeing an increase in kimchi sales right now, while many other functional foods and drinks, such as coconut water, kombucha and fortified dairy products have become household staples.”

FUNCTIONAL FOODS Dollars (000s)

Dollars Growth % YA

Total Functional Drinks

$52,719

7.4%

Kombucha

$28,074

-3.1%

Coconut Water*

$14,188

14.3%

Conventional and modified functional foods

Functional Drinks Other

$10,457

36.3%

Functional foods are generally separated into two categories: conventional and modified.

Conventional foods are natural, whole-food ingredients that are rich in important nutrients like vitamins, minerals, antioxidants, and heart-healthy fats.

Meanwhile, modified foods have been fortified with additional ingredients, such as vitamins, minerals, probiotics, or fiber, to increase a food’s health benefits.

Conventional functional foods include: • Fruits: berries, kiwi, pears, peaches, apples, oranges, bananas • Vegetables: broccoli, cauliflower, kale, spinach, zucchini • Nuts: almonds, cashews, pistachios, macadamia nuts, Brazil nuts • Seeds: chia seeds, flax seeds, hemp seeds, pumpkin seeds • Legumes: black beans, chickpeas, navy beans, lentils • Whole grains: oats, barley, buckwheat, brown rice, couscous • Seafood: salmon, sardines, anchovies, mackerel, cod • Fermented foods: tempeh, kombucha, kimchi, kefir, sauerkraut • Herbs and spices: turmeric, cinnamon, ginger, cayenne pepper • Beverages: coffee, green tea, black tea

Total Dietary Food Drinks

$20,904

-6.9%

Dietary Food Drinks Other

$15,777

1.0%

Collagen Milk Additives

$5,127

-25.0%

Total Fermented Foods

$3,723

8.0%

Sauerkraut

$2,480

6.0%

Tempeh

$681

-15.2%

Kimchi*

$562

84.6%

* denotes value AND unit growth > +2% IRI defined segments based on lifestyle drinks, dietary food drinks and selected fermented foods.

Source : IRI Market Edge Grocery MAT to 25/12/22

Modified functional foods include: • fortified juices • fortified dairy products, such as milk and yogurt • fortified milk alternatives, such as almond, rice, coconut, and cashew milk • fortified grains, such as bread and pasta • fortified cereal and granola

profile

Havana’s new RTD coffees 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.

And late in 2022, Havana Coffee expanded their range into the high growth and profitable Ready to Drink (RTD) coffee space.

Now your customers ‘can’ enjoy the COFFEEUFEEL, even when on the move. The beans are still hot air roasted, but the coffee is cold brewed and the flavours are superb. We think it’s the coolest Havana coffee ever!

There are two flavours of premium cold brew coffee to try. They were chosen to reflect two of their most popular blends of coffee - 5 Star and Super Deluxe.

5 Star Oat milk Flat white – the only way to describe this coffee blend is “chocolate brownie”. A huge depth of flavour with a creamy malt undertone and full-bodied chocolatey finish makes this coffee extremely more-ish. An unparalleled crowd pleaser of the highest quality.

Super Deluxe Long black – an elegant and very palatable blend of coffees with velvety undertones of caramel. With notes of nougat, it’s a coffee treasure you will love to share.

Coffee and water with no additives, just the good stuff.

Best enjoyed chilled.

Get your order in by contacting your local Havana Sales team, on enquiries@havana.co.nz or 04 384 7041.

FMCG BUSINESS - FEBRUARY 2023

33

category insights Good for the gut

Day says there’s a definite shift in the benefits With the evolving needs of consumers, businesses customers are looking to get from their foods are focusing on tailoring their offerings to better with ‘good for the gut’ foods being his personal serve their customers changing needs. According pick for the upcoming year. to the expert team at Foodstuffs, a 100% New “We’ve seen lots of added fibre foods, tummy Zealand-owned and operated co-operative, behind tonics and probiotic yogurts and fermented foods New World, PAK’nSAVE and Four Square being really popular recently and this is something Foodstuffs Head of Customer stores nationwide, the trends are shifting towards we’ll continue to see across 2023 as Kiwis try to Insights and Intelligence Chris Day consumers making conscious choices across the look after themselves from the inside out.” board. We’re seeking food that’s better for our budgets, for our wellbeing Another big trend shift can be seen in alternative drinks. Sober and for the planet, as well as options that save time in the kitchen. curious? Wine lover or loather? While the terminology varies, Kiwis Foodstuffs Head of Customer Insights and Intelligence Chris Day are wanting to experiment with the variety of drinks, while not says customer trends are ever-changing, and the cooperatives continually compromising on taste, or choice. And thanks to New Zealand’s beverage evaluate what’s on offer, to ensure Kiwis can get exactly what they’re after makers, they don’t have to, with new and innovative options across the and from a selection of great local suppliers. sector that are just as delicious as the standard options.

Data reveals more and more shoppers are moving towards not just Adding to the growing demand, New World has introduced ‘Zero flavourful but convenient functional foods in their daily shops.

Zones’ within liquor departments where shoppers can easily find a range Since the 80’s, we’ve been enjoying fortified food, and in 2023 Kiwis of non-alcoholic beverage alternatives. will be looking for an easy way to increase our health through the foods “Last year, we saw sales in our non-alcoholic wine sales double, and we consume and buying products that helps us boost our immunity and thanks to some truly genius work in the craft beer space, interest in our improve gut health. beer chiller options rose 40%,” says Day. The FMCG Business team endeavours to produce a monthly snapshot of category news and highlights, based on information from participating clients, plus a table of the freshest data available at time of print. If you wish to contribute news for upcoming category reports, please contact trubanowski@fmcgbusiness.co.nz

Get your order in! enquiries@havana.co.nz 04 384 7041 34

FMCG BUSINESS - FEBRUARY 2023

innovation

Healthy fuel for the hustle

This month’s finalist for the FMCG Business Product of the Year award is a new range of smoothie blends that is shaking up the breakfast aisle. The range includes dairy free and gluten free variants that make a tasty, super convenient ‘shake and go’ smoothie.

CEO Dominica Wilkinson says: “At Move Foods we set out to make an innovative meal solution that combined convenience and health, with a focus on real, whole food ingredients to provide ‘fuel for the hustle’ on busy days. Smoothie Blends make a 450ml smoothie onthe-go with no blender required! Simply mix your Smoothie Blend with one cup of liquid – that’s it. They’re the perfect feel-good, convenient

breakfast for every member of the family hustling to rush out the door. Currently available in three tasty flavours; Mango and Passionfruit, Blueberry Pie + Collagen and Banana and Date ‘Salted Caramel’.

“Plus, when you move with Move Foods, you’re helping to create energy for collective change! 10% of our profits go towards creating healthier, more active communities throughout Aotearoa New Zealand.”

Find Move Foods in the breakfast aisle at your local New World or in selected PAK’n SAVE stores.

For more information visit www.movefoods.co.nz

G

UCT OF THE OD YE PR A R G

R

PRODUCT OF THE YEAR

•F M C

•

•

•F M C

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 2023.

UCT OF THE OD YE PR A

To find out more on how to enter please email: trubanowski@fmcgbusiness.co.nz FMCG BUSINESS - FEBRUARY 2023

35

good business

Karma reigns at Sustainable Business Awards

Karma Drinks Co-Founder Chris Morrison at the awards.

The Sustainable Business Network (SBN) winners of the 20th Sustainable Business Awards were revealed at an annual ceremony and Karma Drinks was the winner of the Supreme Transforming Aotearoa New Zealand Award for 2022. The local organic drink manufacturer first won the Social Impactor category, before taking the top prize ahead of the other two finalists - Ecotricity and McCain NZ’s Timaru Plant.

The judges said: “Sustainability is Karma Drinks’ core business, it is fully integrated through its value chain. From the ethical and environmental sustainability of Karma’s raw materials, to their efficient operations, carbon positive goal, diverse and inclusive people practices, consideration of sustainable packaging and freight, and giving customers the ability to amplify their social impact through the Karma Foundation.

Karma’s drinks are tasty (they have won awards!) and it is New Zealand’s top ranking B Corp, and in the top five percent in the world, recognising the completeness of Karma Drink’s business for good.

“A great kaupapa of ‘delivering trade, not aid’, where communities where the cola nuts are grown are in full sovereignty of the funds they generate and are gifted through The Karma Foundation.”

Karma Drinks was born from an idea on Piha Beach, where three friends first thought of forming a company to make ‘Karma Cola’ out of ingredients that were good for the land, good for the growers and good for consumers.

To hold themselves accountable to their mission to produce the world’s most ethical soft drink, they established The Karma Foundation - 1% of revenue from every Karma Drink goes to the cola nut growers and communities in Sierra Leone. The foundation guarantees the funds raised help drive economic and social independence.

Since 2012, more than 43 million Karma Drinks have been sold. This has enabled three bridges to be built, 135 girls sent to school and eight teachers funded, enabling education for a further 614 children in three newly build classrooms. The company has

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FMCG BUSINESS - FEBRUARY 2023

also supported farmers to revive forest farms and provided seed funding for 33 local entrepreneurs. These repaid loans have been distributed to 26 new entrepreneurs. Three villages have set up rice and groundnut seed banks, three more have rice mills, one has a guesthouse and four have new community meeting spaces.

The urgency of sustainability issues has never been more pressing.

This was highlighted by the UN Climate Conference (COP27) taking place against a backdrop of extreme weather events, an energy crisis and scientific data reiterating the world is not doing enough to tackle carbon emissions and protect the future of our planet.

SBN has been at the forefront of networking and advocacy to help businesses become more environmentally friendly since it was founded 20 years ago. It runs the annual Sustainable Business Awards to recognise the country’s leading business sustainability heroes.

Also a finalist for the supreme award and winner of the Climate Action Leader category was food manufacturer, McCain NZ’s Timaru Plant. Since 2020 McCain has undertaken new initiatives and innovative technologies to reduce energy use to identify ways the company could be more energy efficient and use less carbon.

The company has carried out heat recovery and boiler conversion projects which have resulted in a carbon reduction of 34,517 tonnes.

Rachel Brown ONZM, Sustainable Business Network CEO and Founder, said, “Given the last two years and the uncertain times we are in, it’s more important than ever to celebrate the sustainability achievements of organisations and individuals. The issues facing our planet are now at crisis level.

“All the finalists deserve a massive round of applause for continuing with this vital work, particularly in the face of future uncertainty.”

To see the full list of winners visit https://sustainable.org.nz/learn/ news-insights/sustainable-business-award-winners-lead-the-wayin-protecting-people-and-planet/

good business

Four Square arrives in Eden Terrace A brand-new Four Square has opened “Eden Terrace is where I’ve spent a in Eden Terrace in Auckland with the lot of my life and I’ve watched the area latest design and innovations. Owned change over the years. A lot of young and operated by Rachel Kennedy, the professionals, city workers and apartment store has been designed to meet the dwellers call Eden Terrace home - people needs of the local community, with a who lead busy lives and place a lot of focus on convenience. emphasis on convenience.”

The store offers a wide range of “Our new store is lovely. It’s essentially a essentials, fresh foods, self-checkouts, café in the middle of a modern convenience along with a great range of convenient store. We’ve got pastries and bread from meal solutions including sushi, Daily Bread, sandwiches from Dedwood croissants, barista-made Flight Coffee Deli, Flight Coffee, Good Time Pies, salads and food-to-go options from premium and single cakes. For the afternoon and bakers, Daily Bread. evening we’ve got some premium quality Four Square owner Rachel Kennedy, officially opens Four Square Eden Terrace.

A fourth-generation grocer with heat and eat meals like salmon & potato experience running cafés and working gratin and chicken & chips. You can even as a chef Rachel says: “Ahead of opening day I’ve been combining get a nice bottle of wine or a craft beer to unwind at the end of the day.” my foodservice and grocery experience to help deliver an exciting new offer for the Eden Terrace community. We’ve got a great mix of Four Square Eden Terrace Fast Facts grocery products, café items and food to go.”

• 315 square metres of retail space Kennedy says she enjoys being a part of the 99-year-old iconic • Nine new jobs created Kiwi brand and hopes to improve the lives of busy Eden Terrace • Four self-checkouts locals by providing a quick shop that can be done in less than • $100m investment by Foodstuffs in building and transforming 200 steps. co-op stores each year

profile

Rocket fresh Beef Patties, Meatballs and Mince – we have lift off!

Rocket Brand fresh beef patties, meatballs and mince have undergone a significant brand and packaging refresh, re-launching the range into supermarkets across New Zealand from February. Proudly owned and manufactured in Wellington by Taylor Preston Limited, the Rocket beef mince is 100% Angus beef, and the patties and meatballs are premium beef with the iconic and very flavorsome Rocket Sauce. We are proud to now be packing the range into new and very colorful cardboard packaging, introducing some fun to shopping, plus giving us the opportunity to relay more information about the products.

Although the packaging has changed, and the brand has undergone a subtle refresh, the patties and meatballs are made to a delicious recipe that has not changed since its first launch in 1989.

“Excellent shelf life, competitive pricing, attractive packaging and quality ingredients, means we have an excellent range that presents good value for money,” says Sales Manager Andrew Green.

“The beef we use is slaughtered and boned on-site and then transferred directly to the processing room to be ground and formed.

Being an export licensed facility, we can guarantee our processes are to the very highest food safety standards, and adding to that, our beef is also Halal certified.”

Watch out for a new range of chilled Rocket Sous Vide beef & lamb, and frozen Taylored Foods branded slow cooked sous vide as we roll them out in 2023.

For further information please visit www.rocketnz.co.nz

FMCG BUSINESS - FEBRUARY 2023

37

Thinking Green:

Sustainability in the supply chain However you approach it, tackling sustainability along complex supply chains that cross borders, intersect timezones and navigate a multitude of un-aligned priorities is no small task, writes Rachel White.

Given the increasing international attention on sustainability over the past few years, businesses are now actively looking for ways to improve their environmental credentials, including the performance of their endto-end supply chains.

Many have ambitious targets, with the ultimate goal of achieving net zero emissions in the long term, but it’s not always easy to control or indeed measure outcomes for FMCG companies with established operations and complicated networks.

Among other factors, a key driver for change is a shift in consumer habits as the public increasingly favour sustainable products and services, demanding environmental action with their wallets.

Conscious commerce “Consumers are absolutely concerned about the environment, and we see accelerating demand for action on climate change. There is an expectation that brands, and companies are part of the solution,” says Amanda Robertson, Head of Sustainability, Nestlé Oceania.

Brent Gapes, National Sustainability Manager at PepsiCo ANZ agrees, saying that in relation to sustainability, consumers are demanding locally produced products with lower carbon miles. “We’ve seen a renewed focus on local relevance, purpose and sustainability. Local relevance is increasingly an important metric that consumers seek out,” he says.

These sentiments align with recent research released by commerce platform Shopify in their Future of Commerce Trend Report, which found a radical change in consumer behaviour globally.

More than ever, people are seeking out products from brands that resonate with them because of geography, company values or sustainability, with 77% of respondents saying they’re concerned about the environmental impact of the products they buy.

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FMCG BUSINESS - FEBRUARY 2023

Nestlé has commited to planting 10 million trees in Australia.

feature “Conscious commerce is growing on a mass scale and plays a significant role in the purchasing decision of today’s consumer,” says Shaun Broughton, APAC Managing Director at Shopify.

Therefore, it is imperative that businesses clearly show consumers strong sustainability goals and achievements that align with widespread consumer values to succeed in the marketplace going forward.

Lisa Rippon-Lee, Vice President, Public Affairs, Communications & Sustainability, Australia, at Coca-Cola Europacific Partners (CCEP), says more than just passively choosing sustainable products, consumers are now mobilised, prepared to take positive action to do their part to promote sustainability.

“We know consumers are highly motivated to redeem their 10c deposits, in a way [that] they aren’t through mixed-waste recycling bins at home. In locations where The Container Deposit Scheme (CDS) operates, plastic returned via collection depots makes up 80% of all plastic returned for recycling, compared to just 20% through kerbside recycling bins,” she says.

So, it’s important to consumers, but how can large multinational companies like Nestlé, PepsiCo and Coca-Cola ensure sustainability in the supply chain when they have complex relationships with multiple suppliers?

“We’ve seen a renewed focus on local relevance, purpose and sustainability.” Brent Gapes, National Sustainability Manager at PepsiCo ANZ

Collaboration is key Many corporations report that their supply chains create more emissions than the processing and manufacturing side of the business, making it hard to guarantee end-to-end sustainability outcomes. This is the case at CCEP, according to Rippon-Lee. “Our suppliers are responsible for over 90% of our value chain greenhouse gas (GHG) emissions, and we will not meet our own GHG emission reduction targets unless we work in partnership with them,” she says.

“For Nestlé to achieve our ambitious sustainability goals we need to understand the impact of every part of our value chain,” says Amanda Robertson, Head of Sustainability, Nestlé Oceania.

FMCG BUSINESS - FEBRUARY 2023

39

feature By way of an example, she points to a collaborative recycling plant in Albury-Wodonga in Australia, a joint venture partnership between Pact Group, Cleanaway Waste Management Ltd, Asahi Beverages and CCEP. The $45 million plant is “a world-class facility…helping to build a domestic circular economy, increasing the amount of locally sourced and recycled PET in Australia by two-thirds, from around 30,000 tonnes to over 50,000 tonnes per annum.

“Contributing to closing the loop on PET recycling, the site will recycle 30,000 tonnes of PET each year, converting it to raw material that can be used to produce new beverage bottles plus other food and beverage packaging in Australia,” she says.

Along a similar vein, Robertson says the same of Nestlé: “Only 5% of our GHG emissions globally come from sources within our direct operations. We must collaborate with our suppliers, customers, industry associates and consumers to develop solutions to the challenges of climate change,” she says.

“For Nestlé to achieve our ambitious sustainability goals we need to understand the impact of every part of our value chain. This includes parts we control, such as factories, warehouses, and packaging choices, and parts we only influence like the farmers who supply our ingredients.

“The whole company is on a journey as we work with our suppliers, customers, industry associations, and sometimes government to reduce our impact on the planet,” says Robertson. “We know that we can’t do this alone. When it comes to tackling big sustainability challenges, collaboration is key.

“A great example of this is Nestle’s approach to packaging. Each piece of packaging is being reviewed to ensure it is ‘fit for purpose’ and can be recycled. Nestle’s Institute of packaging Science is supporting this effort with 50 packaging experts dedicated to developing the next generation of sustainable packaging materials and developing refillable or reusable packaging systems,” she says.

While collaboration is vital, it also brings with it challenges says Gapes: “Inconsistencies in approaches to sustainability can be challenging and the progress across individual sustainability journeys can be quite varied, not everyone is at the same stage or level.”

It’s an ongoing journey As much progress as has been made already, there’s no disputing on a local, regional, national and global level, there’s still much to be done to ensure sustainable practices are implemented and maintained for generations to come.

“We are on a journey, and part of this involves learning. With our 2025 commitments, it is clear what needs to be done and so these actions are supported with a detailed set of projects and actions, to achieve these commitments,” says Robertson.

“Longer term goals are still having plans developed against them,” she says of Nestlé’s three phase Net Zero Roadmap with the ultimate long-term goal being net zero emissions by 2050.

Rippon-Lee says CCEP is also committed long-term, especially to sustainability goals revolving around establishing a circular economy, water stewardship and transitioning to 100% renewable energy consumption by 2025. CCEP’s ultimate goal is net zero emissions by 2040, ten years ahead of most other corporations.

“We believe that business success and sustainability go hand in hand, and we aim to grow our business in a way that manages our social and environmental impacts responsibly and makes our people, our customers and other stakeholders proud,” she says.

A noble idea that’s hard to attain in reality, sustainability in the supply chain is far from guaranteed, even with the sincerest efforts and the best frameworks in place.

As consumer spending habits change and shipping and logistics become more expensive post-pandemic, the only constant in commerce is change.

Source: c-store.com.au

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FMCG BUSINESS - FEBRUARY 2023

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To discuss all digital and social media advertising opportunities, contact Vicky Bennett, 021 626 115, vbennett@fmcgbusiness.co.nz

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legal advice

What is required from businesses selling ‘organic’ products?

Louise Fryer is a registered legal executive working at Steindle Williams Legal. Louise is halfway through completing her law degree at the University of Auckland and became a registered legal executive in 2015. Louise mainly works in property law and conveyancing at Steindle Williams Legal, but also has experience with commercial leasing and conveyancing, trust law and Wills and Enduring Powers of Attorney. swlegal.co.nz

The Organic Products Bill is currently with the Committee of the Whole House before it goes for its third reading and receives the Royal Assent and is passed as law. The purpose of the bill is to increase consumer confidence in purchasing organic products, increase certainty for businesses making organic claims and facilitate international trade in organic products.

The bill, once it is passed, will allow regulations to be made which stipulate what will be required from businesses selling organic products. If the regulations are not complied with, the bill sets how these new regulations will be enforced. This includes being convicted of an offence and receiving a fine of up to $50,000 for an individual who sells a product as ‘organic’ which fails to meet the relevant standard and $250,000.00 for a body corporate pursuant to s85.

For a business to be approved by MPI to produce or sell products as ‘organic’, they will need to comply with the new regulations. MPI states in its summary of submissions that the proposed baseline process for assessing compliance with the organic standard is that businesses must have in place an Organic Management Plan (OMP), obtain an initial assessment and have that OMP approved by MPI. Businesses should also be subject to ongoing verification to ensure the business is keeping within its OMP. The OMP will likely require various details to be provided, such as products covered, description of physical boundaries and site layouts, description of activities carried out, description of neighbourhood activities that could affect organic

“Many growers and suppliers are concerned about potential costs associated with compliance with the new regime” 42

FMCG BUSINESS - FEBRUARY 2023

integrity and procedures for compliance and managing non-compliance, to name a few. However, this has not yet been finalised.

According to MPI’s summary of submissions regarding this new process; many growers and suppliers are concerned about potential costs associated with compliance with the new regime, especially small businesses and growers. Whereas consumers are more supportive of the regime as it could provide greater certainty of what they are actually buying. MPI have engaged and consulted with many Hapu and Iwi as to the regulatory proposals to see how mātauranga Māori and Tikanga can be best incorporated. Hui participants were interested in various proposals, including exemptions for very small businesses from having a plan evaluated, verified and approved by MPI. Many Hui participants liked the idea that organics could be an avenue to communicate that their kai is unique and that “nowhere else in the world can produce kai like in New Zealand”.

MPI are to prepare advice to the Government on the design of the regulations and will seek approval from ministers to draft them once they have received public submissions. Essentially, MPI would like the new regulations to meet the purpose of the bill as already outlined, with public submissions taken into account. Any business people that are in the industry of organics should keep an eye out for the passing of the bill and the regulations to ensure they take the correct steps to be able to continue trading.

events

New World Taumarunui is open

The Team at New World Taumarunui

New World Taumarunui is finally open after spending 15 months trading from the local athletics club. The country’s newest supermarket represents a $14 million investment in the area and offers a 40% larger store bringing the latest design, technology and a wider range to the local community.

The rebuild has been led by local owner operator of New World Taumarunui, Aiyad Khan, with support from Foodstuffs North Island and the whole New World Taumarunui team.

Foodstuffs North Island is a co-operative of 350 grocers who own and operate their local New World, PAK’nSAVE and Four Square stores in communities around the North Island.

Aiyad Khan, says: “When my family and I came to Taumarunui in 2020, we knew a new store was in the pipeline. It was only due to the support of the community that we were able to move into the athletics

Taumarunui’s $14 million New World has opened with Grocery assistants Janet Brown and Joy Levein cutting the ribbon.

club and keep trading. Arriving in town during a global pandemic was a great way to connect with the locals. We had teachers from Turaki Primary School across the road helping us stack shelves in the athletics club so we could open for business and the whole community reached out. I’m extremely grateful for the support we received.”

Having traded from the athletics club for 15 months, Foodstuffs North Island is determined to thank the community by upgrading the building. Khan says: “Our builders and electricians will be at the athletics club for the next couple of weeks as part of a really significant makeover.

The club rooms are in for a full refurb and modernisation with all the other areas getting a well-deserved facelift. We’ve got LED lighting in and security cameras setup and will also replace the hot water tanks and give the outside a good general tidy up to make it better than ever before. It’s our way of saying thank you to the people of Taumarunui.”

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events

Fresh produce at New World Taumarunui

Owner operator of New World Taumarunui, Aiyad Khan

The new store has been re-designed to meet the needs of the local community explains Khan: “The focus is on freshness and convenience.

It’s been a long time coming for the people of Taumarunui and offers a full range of everyday essentials as-well-as plenty of grab and go products and more premium items.”

“We’ve got a much bigger range of fresh foods and have made some significant upgrades to the bakery, deli, butchery, seafood counter and frozen department. We’ve also got lots of special products that locals are going to love, like sushi made in store, fried bread, hāngī pork and pigs heads.”

The new store has a specially commissioned, large tōtara carving called ‘Nau Mai Ki Te Ao Hou’, which depicts the Māori food gods.

Translating to mean ‘Welcome to New World’, it was made by local carvers from Ngāti Hāua; Rewhiri Tarapata, Brett Te Kene, Kopeke Te Wiki and Mitchell Crown. Situated in the kūwaha or store entrance, Nau Mai Ki Te Ao Hou will welcome future generations of shoppers to New World Taumarunui.

Aiyad Khan started his Foodstuffs career in 1999 when he joined New World Victoria Park as a part time check out operator. Over the space of nine years, he covered a range of roles spanning grocery, storeroom, buying and pricing. In 2008 Aiyad joined Foodstuffs wholesale business Gilmours, where he spent the next eight years before joining the team at PAK’nSAVE Sylvia Park as Fresh Foods Manager and then as Operations Manager. In 2018 Aiyad became Store Manager at PAK’nSAVE Kaitaia before stints at Island Bay New World and PAK’nSAVE Silverdale.

Growing up in a small Fijian town, Taumarunui feels like home for Aiyad Khan and his family: “Rural Taumarunui and the lifestyle that comes with it is just fantastic. Living around farms and animals is something I had growing up and my family and I love it here. While this is my first store, it feels like my third having operated from the old store, the temporary store and now we’re finally here!”

New World Taumarunui was officially opened by Janet Brown and Joy Levein, two Grocery Assistants who cut the ribbon after starting at New World Taumarunui 28 years ago.

New World Taumarunui is located at 10 Hakiaha Street, Taumarunui, 3920 and is open seven days a week from 7am to 8pm.

New World Taumarunui in Numbers: • $14m million-dollar investment in the local community • 2,200 square metres • 40% bigger than the previous store 44

FMCG BUSINESS - FEBRUARY 2023

Local carvers from Ngāti Hāua were commissoned to make a carving from totara to welcome visitors to New World Taumarunui.

Checkouts at the new store

• Will employ around 90 people • 98 car parks including dedicated spaces for parents with children and for customers with trailers • Six self-checkouts • Three months – the time it took local carvers to create ‘Nau Mai Ki Te Ao Hou’ a totara carving in the stores kūwaha or entrance. The names translates as ‘Welcome to New World’ • New World Taumarunui has traded from the local Athletics Club for 15 months whilst the new store was being built • Foodstuffs North Island first began trading from the site over five decades ago

Out & About

the r Jacinda Ardern with Former Prime Ministe ent visit to Viet Nam. rec a on tion ega del trade

Owners Matt and Amy Hayward at the opening of their New World store in Newmarket, Auckland.

SNAP AND

WIN!

New Zealand

5+ A Day Charitable Trust partner, Dame Lisa Carring ton and United Fresh President, Jerry Prendergast at the 31st birthda y celebrations for United Fresh.

Mills and the Goods Steve ctor Packaged Year, at the Countdown re Di l cia er m e Com of th Countdown’s , Fresh Supreme Supplier am .

AS Wilcox te ds ar aw ip ersh supplier partn

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 Vogel’s pack (worth $68) to satisfy your breakfast and snacking needs, including: Vogel’s Delightful Granola, Vogel’s Gut Health Muesli Clusters, Vogel’s Kid’s Cookies & Cream Cereal, Vogel’s Café Style Muesli, Vogel’s All Good Low Sugar Muesli, Vogel’s Clusters, Vogel’s Seriously Good Keto Cookies, Vogel’s Seed & Almond Keto Crackers, Vogel’s 5 Seed & Oat Crackers.

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Just email your high res image with a caption to trubanowski@fmcgbusiness.co.nz FMCG BUSINESS - FEBRUARY 2023

45

Convenience & Impulse Retailing

Recapping the year that was and looking forward to 2023 Dave Hooker Executive Director, New Zealand Association of Convenience Stores (NZACS) Looking back at 2022, it was great to be able to run a complete program of in-person events, including the C&I Expo in Auckland. There was genuine enthusiasm amongst suppliers and retailers to reconnect and reengage with each other.

A number of member companies from New Zealand attended the National Association of Convenience Stores (NACS) show in the US, with more than 25,000 attendees over three days. Speaking with convenience store association leaders from the US, Europe, Australia and Canada, most are dealing with similar challenges and issues.

On a macroeconomic level, the challenges facing convenience stores across the globe are similar, just to varying degrees. Inflation, cost of fuel, supply costs and labour shortages are affecting everyone. At a local level, several countries are very focused on swipe card transaction fees, which represent a multi-billion dollar cost across the markets. In addition, illegal tobacco and navigating the emerging electric vehicle (EV) landscape are on everyone’s agenda to some degree.

Our global colleagues were shocked by the proposed raft of smoke-free changes working their way through government here in New Zealand, and we stand out in the area of retail crime also.

NZACS will continue to inform members of the progress of this bill and lobby on their behalf at every opportunity. We will watch

the passage of this bill extremely closely as it has the potential to cause the biggest shake-up in the convenience industry of all time. A survey by Imperial Tobacco showed that up to 4,000 convenience stores could close if the proposed retail reduction from around 8,000 retail outlets selling tobacco to just 600 is introduced in 2024. All stores will need to model this change and plan to adapt to the degree required to compensate for this change. There will be some big winners but many more losers.

NZACS will continue to provide the annual State of the Industry Report with the addition of six monthly updates. Scan sales MAT to the end of September sourced through NielsenIQ showed sales are up through supermarkets, liquor and pharmacy but down by $16m or 0.7% in the organised oil channel, influenced mainly by the continuing decline in tobacco sales. In addition to this, we will run the Peter Jowett scholarship for emerging talent and the industry awards night. We are also looking at the feasibility of a two-day c-store simulation course and a Down Under Study Tour in Australia.

The organised oil channel that we represent, and its suppliers certainly have some headwinds as we move into 2023. Focusing on competitive fuel pricing, retail standards, expense control, enhancing our offer, and looking after customers and staff will be more important than ever.

“The organised oil channel that we represent, and its suppliers certainly have some headwinds as we move into 2023. Focusing on competitive fuel pricing, retail standards, expense control, enhancing our offer, and looking after customers and staff will be more important than ever”

PETROL AND CONVENIENCE NEWS PROUDLY BROUGHT TO YOU BY 46

FMCG BUSINESS - FEBRUARY 2023

Leaders Forum

Z Energy goes from strength to strength Andy Baird General Manager, Retail, Z Energy Andy Baird, General Manager, Retail, said 2022 was a massive year for Z Energy’s retail business with significant investments in-store layout updates and electric vehicle uptake.

“Following a successful pilot in late 2021, in 2022, we ramped up the rollout of our store refresh program. The program is focused on refreshing the look and feel of Z’s top-performing retail sites.

Z Energy’s store refresh “We are on track to program on display complete 16 sites by the end at Waiuku of FY23, with a total of 50 sites set for completion by mid-2024. It is the most significant investment Z has made into its retail network since we launched the Z brand in 2010,” he said.

“A focus of the programme is Mobility 10, which is food and drink that is consumed within 10 minutes of purchase by our on-the-go customers.

“The refreshed store layout has been designed with this in mind to ensure we could de-bunch queues and wait spaces, making it even easier for customers to pick-up pre-ordered coffee,” said Baird.

Moving with the times, Z Energy also rolled out its Z-branded electric vehicle (EV) charging infrastructure.

“We have committed to rolling out fast chargers to over 40% of our network by 2025, which will help our customers transition to a low carbon future and is aligned to our purpose of solving what matters for a moving world.

“It’s an exciting time to be at Z, where the transition to an electrified light fleet is well underway,” said Baird.

“Another highlight of 2022 was our annual Good in the Hood initiative,” he continues. “This year, we shared $1 million across Aotearoa thanks to our customers voting for their favourite local charities and community groups,” he said.

Acknowledging the impact of COVID-19 over the past couple of years and the ongoing challenges associated with it, Baird said fuel sales have steadily returned, and while the focus to date has been on staff and customer safety, focus can now return to speed and convenience.

“As the uncertainty of the previous two years dissipates and we move out of the pandemic, our teams are well equipped to continue offering best in class service to our customers so that we can meet their fuel and convenience needs, and at some sites, also their electron needs,” he said.

“There are plenty of opportunities for Z in 2023, much of which can be pinned down to ‘innovation’ ” Baird predicts that the upswing in fresh food and grocery purchases noticed in 2022 will continue into 2023 as the population continues to purchase healthier options and alternatives.

“There is an overall trend that the perception of service stations has moved beyond a basic fuel and convenience offering, to a broader grocery offering.

“Based on this year’s performance, we are expecting an increased trend in top up groceries and Uber delivery of snacks and groceries,” said Baird.

Looking towards 2023, Baird sees plenty of opportunity for Z Energy to innovate and enhance customer experience, even in the face of a predicted rise in the cost of living across the country.

“A major challenge facing Aotearoa for the foreseeable future is the cost of living. This has impacts on all elements of our retail network – from supply chain to end customers,” said Baird.

Despite this, Baird said: “There are plenty of opportunities for Z in 2023, much of which can be pinned down to ‘innovation’.”

Moving with the times and capitalising on consumer trends, Baird said Z Energy’s scale and willingness to evolve sets them apart from competitors and, ultimately, the ability to provide customers with a unique offering that meets their needs.

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Convenience & Impulse Retailing

Tourism brings normality back to South Island convenience Mike Arlidge Group Manager, On The Spot Mike Arlidge, Group Manager, On The Spot, said it was pleasing to see a return to normal trading in places like Te Anau, Haast, Queenstown and Fox Glacier especially.

“Store owner operators have weathered some tough trading over the last two years in the pandemic-infected market and it’s been fantastic to see some tourists return to visit the beautiful South Island,” he said.

Loved by locals, On The Spot is committed to evolving with the market as the South Island’s largest independent convenience banner.

“One of the key highlights for the group is welcoming a new member, On the Spot Green Island, to the amazing group of stores we currently have.

“This store complements our group and to have another communityfocused store within our portfolio is awesome,” said Arlidge.

As the group grows, Arlidge said the key priority of On The Spot in 2023 will be managing the inflationary trading environment and increasing fuel prices while maintaining a local focus and quality offering.

“We’re focusing all our efforts on customers’ needs as the forefront of our decisions. Our priority is to provide offerings relative to the customers’ needs while meeting the ever-increasing demand for value.

“Value does not mean just price, it means great customer service, clean and friendly retail environments that our customers feel welcome and safe in while shopping,” he said.

While price is a key customer driver, Arlidge said simplicity and speed are also essential. It is about making it as easy as possible for customers to find the products they need quickly.

“The changing landscape of pricing in the market has brought the pricing offer between convenience and grocery closer.

“Consumers now know that they can do top-up shops at their local convenience stores and find a good range of lines at a fair price,” he said.

Arlidge predicts staffing will continue to be a challenge into 2023 and feels it’s essential to connect with prospective employees in new and interesting ways.

On the Spot, Collingwood store

“Value does not mean just price, it means great customer service, clean and friendly retail environments that our customers feel welcome and safe in while shopping”

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“As operators, we need to explore effective ways of connecting with prospects by being relevant in the market and providing a safe place to work with meaningful career opportunities,” he said.

With 76 convenience stores across the South Island, some standalone and others attached to petrol stations, On The Spot is a key part of New Zealand’s retail environment.

“As convenience retailers, we need to ensure that we are offering all our customers value that will bring them back to our stores,” said Arlidge. “Which all starts from great customer service.”

As well as providing customers with consistently clean and wellmerchandised stores, Arlidge said: “Customers’ shopping habits are evolving, and as retailers, we’re adapting our offers and service to meet the ever-increasing demand for value and convenience.”

Having successfully weathered the pandemic and its effects, Arlidge said: “Our owner-operators live and serve within their local communities and have done an incredible job managing the everchanging landscape of convenience retailing.”

With the worst behind them and normality slowly returning, 2023 is looking positive for On The Spot as owner-operators continue to serve their local communities to the best of their ability.

Leaders Forum

Creating a point of difference with fresh and inviting food-to-go Louise Mitchell

“We now have nine sites on the North Island and we plan to launch our retail offering there at some stage in the future,” she said.

Senior Category Manager, NPD As well as northward development, Louise Mitchell, Senior Category Mitchell says NPD has a number of Manager, NPD, says being named projects underway to refurbish existing Best Regional Retail Group for Store sites early in 2023 to ensure they Execution by NZACS was a proud maintain their award-winning retail moment for the retail team and execution. rounded out a steady year of growth Reflecting on the year that was, for the convenience retailer.

Mitchell said there were challenges “2022 has been another busy year with supply chain delays and for NPD. We opened another two of staffing shortages, but the impact our Refresh Café sites in Christchurch, was manageable, and NPD was Yaldhurst Road in February and able to experience growth even Brougham Street in August. during these challenging times. In 2023 “It has been great to expand our retail Mitchell expects managing increasing footprint in the wider Christchurch area. We costs while maintaining a premium offer will also expanded our self-serve be a challenge, but one that network with another seven many businesses will also be sites across the country,” experiencing. she said.

“We are always looking NPD’s Refresh Café sites for opportunities to keep our also got an extended food food-to-go offer innovative offering with the rollout of and exciting, and we will their signature Southern continue to drive this category Crunch Chicken completed within our stores. and the Deliver Easy online “The impacts of the platform launched to facilitate Smokefree Aotearoa action home deliveries. plan will be one to watch “We have seen some substantial growth in our café sites over the past closely with an election looming in 2023,” she adds. year, which shows consumer demand for on-the-go food has increased.

As far as consumer behaviour goes, Mitchell says inflation will force “Our offer is fresh and inviting plus there is plenty of choice to many to look at spending and seek value for money. wow your tastebuds, which keeps our customers coming back,” said “Value perception will become very important to many over the next Mitchell.

12 months as inflation drives changes to consumers’ spending “The beverage, ice cream and snacking categories habits and they look to make their money go further. have also performed well for us with some very “Health and wellness will continue to shape a successful new product launches throughout number of trends as consumers take a proactive and 2022. holistic approach to their wellbeing,” she said.

“The ‘better for you’ options are driving “I’ll finish with a quote I read recently that growth in the snacking category, so we have resonated with me and I believe a lot could increased our range of health bars and snacks relate heading into 2023. to accommodate the demand,” she said.

“You’ll never get bored when you try Mitchell says the immediate focus for NPD something new. There’s really no limit to what in 2023 will include scoping out additional you can do.” – Dr. Seuss locations for potential construction across New Mitchell concludes: “Don’t be afraid to get NPD’s Refresh Cafe on Brougham Street, Zealand, with several sites on the North Island creative with your offer and have a point of Christchurch earmarked for future expansion. difference to your competitors.”

“We are always looking for opportunities to keep our foodto-go offer innovative and exciting and we will continue to drive this category within our stores”

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Convenience & Impulse Retailing

Mobil’s customer-centric focus key to success in 2023 Karl Jones Convenience Retail Manager, Mobil Oil New Zealand Karl Jones, Convenience Retail Manager, Mobil Oil New Zealand, said despite the challenges, he’s delighted with Mobil’s c-store performance in 2022.

“We are particularly proud of the transitions we have been implementing at our stores, as we seek to increase the digital experience for our customers as well as upgrade elements of our c-store operations,” he said.

Lessons learned from 2022 centre around a customer-centric attitude according to Jones, who said convenience stores are always busiest when the focus is on the customer.

“We’re continually learning about what customers need and want and then adjusting our strategy to meet those needs.

“Our initiatives including food-for-later and food and beverage combos on the Mobil Smiles Rewards App, which makes life easier for our customers by giving them the option to purchase their lunch or evening meal during their fuel stop,” he said.

And while Mobil continues to trial new initiatives, Jones said that overall, customers are responding well to the availability of quick and easy fare that’s well suited to on-the-go shopping.

“Mobil is always keen to listen, learn and improve, and we thank all of our site teams and customers as we work closely together and do our best to overcome the challenges that remain now and in the future.

“Embracing better health options and omni-channel opportunities alongside a digital and full in-store experience will be critical in the future,” said Jones.

And while staffing shortages, supply chain pressures and the general cost of living are all factors that will continue to challenge Mobil in the

coming year, Jones said they’re committed to ensuring the everyday needs of customers are satisfied.

“We remain committed to ensuring the everyday needs of our customers are met and to keep Kiwis moving as they head off on their next road trip or adventure, great availability and value are our key focus areas.

“At Mobil, we want to ensure our customers receive the best experience and outstanding value. We are focused on rewarding customers for their loyalty through our Mobil Smiles Driver Rewards program and by providing convenient locations that serve quality food and beverages,” he said.

Never forgetting their customers and local community, a real highlight of 2022 was the company’s donation of $250,000 to kids in need.

“We are super proud of our continued partnership with Kidscan where, despite the economic challenges, our customers have helped us raise more than $250,000 for this charity through our hot and cold prepared beverage program,” said Jones.

“At Mobil, we want to ensure our customers receive the best experience and outstanding value. We are focused on rewarding customers for their loyalty through our Mobil Smiles Driver Rewards program and by providing convenient locations that serve quality food and beverages” 50

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Leaders Forum

Adaption, focus and investment key for MetroMart in 2023 James Godinet CEO MetroMart

“As convenience operators we must continue to look to improve our store offerings and continue to embrace technology also in 2023 and beyond”

As the effects of COVID-19 stabilise and the petrol and convenience channel returns to a “new normal”, James Godinet, CEO, MetroMart talks about his plans for 2023.

“There have obviously been some real shifts over the last two years in shopper behaviour and we see some trends and changes that continue to drive us to evolve.

“As convenience operators we must continue to look to improve our store offerings and continue to embrace technology also in 2023 and beyond,” said Godinet.

Although supply chain issues will, in all likelihood, continue into 2023, Godinet hopes product shortages will improve throughout the year but Godinet said that as well as COVID-related admits rising inflation will continue to affect challenges like staff shortages, supply chain consumer spending. issues, rising inflation and product shortages, the “Adaption, focus and investment is following year will bring additional challenges essential to go forward,” he said. “We have for the P&C channel in New Zealand. seen across the industry stores evolve “Our industry faces some other challenges and grow and excel, we have also seen with Smokefree 2025 looming. At MetroMart, numerous smaller stores close across tobacco product sales have never been a the regions – the majority of the time, this focus, more so a consumer choice. relates to failure to adapt.”

“We continue to adapt and grow Adaptions for MetroMart include an categories in-store but the financial MetroMart continues to adapt with an expanded fresh food and coffee expanded fresh food offering and its “better impact of losing tobacco sales will affect offering and “better for you” for you” beverage and snack selections, all convenience and petroleum stores across beverages and snacks including real fruit ice cream and premium hot food Aotearoa,” he said. like gourmet pizza and expanding the existing premium “Crime is also at the forefront of mind for our industry, doughnut selection. and we hope that this recent spike in ram raids and robberies Godinet said the mid-afternoon pick-me-up “is shifting away from across NZ can be bought under control by more social supports for a full sugar chocolate bar to a protein bar”. He said similar trends are youth and, dare I say it, harsher penalties when required.” emerging in the beverage category, with many zero-sugar options All in all, Godinet said 2022 was a good year for MetroMart, ending performing well. on a high with the first North Island store opening in late December at No stranger to adversity, Godinet lost six stores in just one minute Lower Hutt in the Wellington region. during the 2011 Christchurch earthquake. A devastating experience, “MetroMart in 2023 has further expansion plans, and we are Godinet said, coming through the earthquake has equipped the excited,” said Godinet. company to cope with challenges associated with the pandemic.

The newly converted Lower Hutt store has been a success so “MetroMart was actually the first retail store open in the Christchurch far, and MetroMart is in discussions with other existing retailers in CBD amongst the demolition going on around us. Resilience can only the Wellington region to continue its Northward expansion in the make us all stronger and more determined than ever to be better,” he said. coming year.

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