FMCG June 2022

fmcgbusiness.co.nz

L E A D I N G

I N D U S T R Y

N E W S

JUNE 2022 – Volume 9 – No 5

PLUS! HEALTH & WELLNESS n PLANT POWER n BETTER BAKING n HOT DRINKS n NEW ZEALAND’S LARGEST FMCG AUDIENCE

The New Zealand Fresh Bone Broth revolution starts

here

Growing awareness of health and wellbeing is driving sales of Drinking Bone Broth around the globe. Following in the footsteps of the Kombucha revolution, it’s now a US$3 billion+ market with a CAGR (compound annual growth rate) of more than 4.5%.

Greenlea Premier Meats has developed the Restore range of grass fed beef and free range chicken broths to deliver the tastiest and most beneficial drinking broths for New Zealand consumers.

Join us in leading the Bone Broth revolution in Aotearoa.

Email: restore@greenlea.co.nz restore.co.nz

contents JUNE 2022

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UP FRONT

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EDITOR’S NOTE

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INDUSTRY NEWS

29 FMCG BUSINESS PRODUCT OF THE YEAR Another finalist is revealed

SPECIAL FEATURES 14 PLANT POWER Plant-based products are in hot demand 20

BETTER BAKING

22 HOT DRINKS Category news and trends

REGULARS 8 ARE YOU HAPPY WITH THE RESULTS YOU’RE GETTING? 10 HEALTH & WELLNESS Allergy-friendly snacks 12 BEST IN SEASON Fresh produce update 13 WHAT’S HOT New products in store

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19 IRI: SEEDS OF GROWTH IN PLANT-BASED FOODS

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25 FRESH MEDIA OFFERS BRANDS ALTERNATIVE TO IN-STORE SAMPLING

GOOD BUSINESS 26 INDUSTRY NEWS AND INSIGHTS 27 COVER STORY A tissue for all seasons – Cottonsoft NZ

EXPORT TIPS

30 JAMES & WELLS Are ‘clean labels’ becoming more important than your brand?

31

LEGAL ADVICE

32 FGC Surviving a perfect storm 33 UNDER PRESSURE Lew Bentley’s notes from the retail front line

EVENTS 34 ONZFPA MEDAL WINNERS ANNOUNCED 35 MARK YOUR DIARY – THE FMCG BUSINESS MARKETING SUMMIT IS BACK 37 OUT & ABOUT Our people at work and events around the country

CONVENIENCE & IMPULSE RETAILING 38 NZACS State of the Industry launch 40 Z Energy Revamped stores are rolling out across New Zealand

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[ editorial ]

TOP TRENDS & EXPERT INSIGHTS The plant-based food revolution continues to break new ground. Rising awareness of health and wellbeing, shoppers’ desire to make their budget go further and easier access to plant-based foods has seen the trend becoming more mainstream in 2022. Market research experts IRI reveal in this issue how New Zealand consumer attitudes towards plant-based foods have evolved. We also talk to local suppliers to find out what’s new and driving sales in vegan and vegetarian products right now.

Discover what’s best in season this month and what’s trending in the baking aisle, in hot beverages and in allergy-friendly products.

Did you know that from 25 June 2022, vaping products can only be distributed with packaging that complies with regulations, which include that they do not resemble food or cosmetics, they display a message that vaping is harmful to health and that they do not claim that their use is beneficial to the user’s health. Find out more on page 31.

We’re grateful for the expert insights and advice from FGC Chief Executive Katherine Rich and the teams at James & Wells, Steindle Williams Legal, IRI, C&I NZ, Energi and United Fresh, who have all helped to bring this edition of FMCG Business to you.

You can join our daily conversations on LinkedIn, Facebook, Instagram and Twitter and receive our weekly news updates directly to your inbox by subscribing here: https://www.fmcgbusiness.co.nz/subscribe/ We hope to catch up with you at our Marketing Summit in Auckland on 1 September - don’t miss out on Early Bird tickets, available over on www.fmcgsummit.co.nz for a limited time only!

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

PUBLISHED BY C&I Media (NZ) Ltd PO Box 109 342 Newmarket, Auckland 1149 MANAGING DIRECTOR Simon Grover COMMERCIAL DIRECTOR Safa de Valois safa@c-store.com.au EDITORIAL DIRECTOR James Wells james@intermedia.com.au HEAD OF CONTENT Tamara Rubanowski trubanowski@intermedianz.co.nz ph: 027 278 4761 ASSOCIATE PUBLISHER C&I NZ Deb Jackson d.jackson@c-store.com.au NATIONAL SALES MANAGER Vicky Bennett vbennett@intermedianz.co.nz ph: 021 626 115 ART DIRECTOR Leanne Hogbin leanne@intermedia.com.au PRODUCTION MANAGER Jacqui Cooper jacqui@intermedia.com.au DIGITAL AND PRINT COORDINATOR Eclypse Lee elee@intermedianz.co.nz

C&I Media takes its Corporate and Social Responsibilities seriously and is committed to reducing its impact on the environment. We continuously strive to improve our environmental performance and to initiate additional CSR based projects and activities. As part of our company policy we ensure that the products and services used in the manufacture of this magazine are sourced from environmentally responsible suppliers.

This magazine is printed on Impress stock from Spicers Paper using FSC® MIX source pulp from responsible sources and other controlled sources. We print using BIO-inks that contain base materials from renewable resources including wood resin (rosin, colophony), vegetable oils, linseed oil and soy bean oil. This magazine is printed by ICG, an ToitŪ enviromark gold certified printer.

ISSN 2382-1663 (print) ISSN 2624-4802 (online)

ON THE COVER In a time when hygiene features so highly in Kiwis everyday lives, Cottonsoft NZ has continued to lead development of solutions to support our community, category and the environment. Find out how on pg 27.

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

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FMCG BUSINESS - JUNE 2022

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 © 2022 - C&I Media (NZ) Ltd

[ news ]

BALCLUTHA, THERE’S A NEW KID IN TOWN!

The Countdown Balclutha team on opening day.

Balclutha residents will be spoilt for supermarket choice, with a new state-of-the-art Countdown Balclutha opening. The $18 million dollar development has also created over 80 new jobs for the community and is the first Countdown for the area.

Countdown’s Director of Property, Matt Grainger, says Countdown is thrilled to be joining the Balclutha community and introducing more grocery shopping options for the town.

“Opening Countdown Balclutha is another milestone in our $50 million programme of investment in Otago and Southland, with a further four new store or existing store renovation projects that we’re aiming to deliver over a 12-month period.

“The 2,530qm Balclutha store has been designed and built to meet the needs and wants of our new customers. For example, we know locals want access to convenient online shopping services, so we’ve built a dedicated area for online order pick-ups, which means customers can pull up and pop their shopping in the boot.”

The store also has a number of sustainability features, including electronic shelf labels to reduce paper use, bike racks for customers, a transcritical refrigeration system, and doors on fridges to help reduce energy use. To help reduce food waste, Countdown Balclutha is partnering with The Salvation Army to divert food that can’t be sold but is still good enough to eat.

Another key part of the Balclutha development has been building the team, with Countdown working closely with the local Council and Ministry for Social Development throughout its recruitment campaign.

The supermarket is located at 8-12 Clyde Street, Balclutha, Otago and is open 8am - 9pm, seven days a week.

FOR MORE INDUSTRY NEWS FOLLOW US ON 6

FMCG BUSINESS - JUNE 2022

Countdown’s Director of Property, Matt Grainger

The new Countdown supermarket in Balclutha

CHECK OUT WWW.FMCGBUSINESS.CO.NZ

[ news ]

NEW POWERHOUSE DISTRIBUTOR FOR CH’I Premium beverage distributor Federal Merchants & Co. has signalled a strategic move towards non-alcoholic beverages by entering a distribution agreement with the CH’I Herbal Drinks Co. that will see CH’I sold in the places New Zealanders buy beverages for leisure and socialising. This will commence from July 1st 2022.

Federal Merchant & Co. have been in the beverages business since 2001 and now work on sales improvements for many NZ and international brands via supermarkets, liquor retailers, on-premise, wholesale and oil channels with market leaders like San Pellegrino, Glenfiddich, Hendricks, Fireball and Pals, to name a few.

The CH’I Herbal Drinks Co. is a recent rebadging of this unique New Zealand drink business following a rethink of strategy under the guidance of Debbie Humphries of Spring, with scholarship funding from BNZ. CH’I was founded in the late 1980’s and led a trend towards consumers selecting nature inspired beverages that is now exploding.

CH’I Managing Director Ray Nicholls says: “Federal Merchants & Co. will do a fantastic job of taking CH’I into a step change of availability across New Zealand. They are going to lead out with some very cool product innovations we’ll release soon. For us it’s all about consumers in the moments they take time out, look after themselves better, reflect and reconnect with what’s important in life.”

CH‘I drinks are crafted from real herbs by the company at Riverhead, New Zealand. Look out for the new CH’I range available in a four-pack of 250ml cans soon.

CH’I was founded in the late 1980’s and led a trend towards consumers selecting nature inspired beverages

[ sponsored content ]

WE MAKE RUBBISH SUNGLASSES! Imagine a world where we looked at used consumer waste as a new resource, something that can make practical and even stylish products to be used every day, again. This is exactly how Zephyr has begun to look at possible materials available to make its sunglasses.

Zephyr, born in 1994, has a long and rich history in crafting practical and on trend sunglasses. The team spends a large proportion of their time researching new manufacturing processes, finishes and the latest in eyewear tech to wrap them up into value price point eyewear that represents real value.

There has been significant investment and research into renewable and sustainable options in manufacturing sunglasses that not only meet the Australian and New Zealand Standards, with 100% UV Protection, but also use materials that will contribute to reducing waste and give a new life to plastics primarily that are here on earth to stay.

The latest feature in the 700 plus strong SKU collection is an Eco Range made from recycled material called ‘rPCTG’. In short transparent or coloured food containers, bottles or caps are crushed and washed then reprocessed into primary materials to make new products. This process does not impact the integrity of the base material just creating a new perfect primary material to make the product from. Keep an eye out in-store for the ‘Eco-friendly’ logo and the amazing styles that have been crafted from this material.

Zephyr is keen to invest in more research to see what other environmentally friendly materials can be used to increase the sustainability of its product and business even further. Durability and quality will be the determining factor to ensure the product meets the high standards everyone has grown to love about Zephyr. For now, the Eco range has arrived so here is to enjoying the sun and enjoying looking after our beautiful planet into the future.

FMCG BUSINESS - JUNE 2022

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ARE YOU HAPPY WITH THE RESULTS YOU’RE GETTING?

BrandWorld General Manager, Rachael Weaver, brings great news to the FMCG community with the relaunch of Discover and the Discover Club, a fully integrated platform dedicated to NPD and new news.

As a hub for new products, ideas and news, Discover and the Discover Club is an engaged community of interest fuelled by product reviews, promotions and competitions.

“It’s fair to say we approach things a little differently here at BrandWorld,” says Weaver. “We know the demands on marketers to deliver great results really fast is stronger than ever.

Time pressures mean we need advertising to not only work fast, but be easy to develop and implement and importantly, not cost the earth. The added benefits being no hassles or expensive surprises on the way.”

The good news is, brands can and do achieve this. And BrandWorld’s platforms are playing their part. Their longestablished endorsement platform, Family Health Diary reaches millions every week, and their newly relaunched Discover masthead and the Discover Club is a fully integrated platform. A hub for new products, ideas and news with a website and engaged community fuelled by product reviews, promotions and competitions. Whether you need to solve a health problem or want to discover an exciting new product or service, these trusted mastheads can not only present your brand in a whole new light, but they can also deliver sales on steroids.

“A big part of Family Health Diary and Discover’s success lies in how we use the power of third-party endorsement in the form of presenters,”

says Weaver. “Our presenters are experienced and recognisable – viewers know and trust them. They guide people through the problem, solution and call to action. Each message is tailored, but the core principle across them all is simplicity, clarity and empathy.

“Our creative approach is key to client’s success,” says Weaver. “We have developed a secret formula in our approach, which is as close to a guaranteed success as can be imagined, it’s why brands come back and back to us.”

The other key to BrandWorld’s success is their integrated approach, which has helped them to stay relevant in a world of disruption.

“Using our media Proprietary Data Platform to leverage every video placement, we are able to build custom audiences for our clients,” Weaver explains.

“Combined with our latest digital planning and implementation strategy, some of our clients have been enjoying brand performance lifts in excess of 100%.

“Our ability to build custom BrandWorld audiences is our USP. These audiences are created from a culmination of our data over time from all of our platforms. We then fuse them with premium audiences we buy on the open market to create super audience pools,” says Weaver.

As part of the award-winning Clemenger Group, BrandWorld also delivers extremely cost-efficient buying across important premium sites that reflect the value of each brand.

“Television also remains the hero in much of our storytelling,” Weaver says. “Our secret formula, tried and tested over more than 2000

“SALES ON STEROIDS”

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FMCG BUSINESS - JUNE 2022

[ sponsored content ] commercials gives us ongoing faith in what we do.

We scrutinise every second of commercial airtime to ensure consumer focus and engagement in our attention-driven economy.”

About BrandWorld For 25 years BrandWorld has been disrupting the marketing space. When three of New Zealand’s own Mad Men got together to turn the industry on its head, BrandWorld and its signature third-party platform Family Health Diary was born. Today, a whole generation of Kiwis have grown up with Family Health Diary, making the platform instantly recognisable to consumers, and an advertising icon in its own right.

Discover rejoins the family of mastheads with a fresh new look and a wider offer to marketers, especially those with NPD stories to be told.

With fast turnarounds and cost-effective results, BrandWorld are the people to call when you have new news to share or a depressed sales line in need of a boost.

Give us a call. We would love to make a difference to your brand.

Contact GM Rachael Weaver: Rachael@brandworld.co.nz m. 021 667 184 Director of Sales jacqueline.freeman@brandworld.co.nz m. 0212 867 600 Strategy and Business Development Director jacqui.simpson@brandworld.co.nz m. 021 166 0564

BrandWorld: home to Family Health Diary, Whanau Health Diary, ChooseWell, Discover and fit-for-purpose custom mastheads.

“BRANDWORLD RELAUNCHES DISCOVER – THE HOME OF NPD”

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HEALTH & WELLNESS Allergy-friendly snacks are trending.

Many shoppers choose to avoid gluten or dairy, either as part of a healthy diet, or for specific health reasons. Here is a tasty snack option that’s popular in stores right now.

Healthier snacking with Eat Real Eat Real is an award-winning snack brand from the UK making great tasting snacks with all natural ingredients. Utilizing grains and pulses as the base of their snacks these come in Hummus, Lentil, Quinoa and Veggie bases that all contain less fat and sodium than regular potato chips. Because they only use real ingredients their snacks are free from any artificial colours, flavours and ingredients.

With a passion for producing great tasting snacks Eat Real endeavours to create products that are great for everyone. This means that all Eat

Real products are free from the major declarable allergens, are gluten free and vegan friendly. Not only this but they also cater to Halal and Kosher consumers.

“With allergies becoming more prevalent affecting 1 in 10 children under the age of five it is more important than ever to ensure snack options are available that are allergen free,” says Channel & Brand Manager Joanie Nel. “Eat Real provides the perfect fit and is one of the few brands that can claim to be allergen free whilst not compromising on taste.

“Seeing double digit growth year on year, this brand is a great fit for consumers and stores alike,” says Nel. For sales enquiries call 09 410 1066; email sales@houseff.co.nz or visit https://houseff.co.nz Sources: http://www.allergy.org.nz/A-Z+Allergies/Food+allergy.html

“ALL EAT REAL PRODUCTS ARE FREE FROM THE MAJOR DECLARABLE ALLERGENS” 10

FMCG BUSINESS - JUNE 2022

[ feature ]

Molly Woppy - 100% delicious and 0% gluten Molly Woppy is well known for making delicious gluten free cookies. Their gluten free range of cookies are stamped with the Cross Grain logo – the certified trademark from Coeliac New Zealand - giving consumers confidence and a quick reference point when shopping.

“Back in 2005 we could see a growing trend for gluten free and launched our gluten free range. We set ourselves a goal to produce great tasting gluten free cookies that can be readily available to every household. With our Milk Choccy Chunk Artisan cookies winning a Bronze in the 2019 Outstanding NZ Food Producer Awards, and our sales increasing year on year we believe we have achieved that goal,” says Director Alistair Parker.

“We believe in creating cookies that are made with the best quality, locally sourced ingredients which is why we made our own gluten free flour. This makes our gluten free cookies taste next level and differentiates us from our competitors. We always think about the person who is receiving our product and what they have come to expect out of our baking.

“Our cookies contain premium quality ingredients that the consumer can recognize and associate with, such as New Zealand free range eggs and New Zealand butter.

“When it comes to taste and texture, gluten free products don’t always have the best reputation. When we developed our gluten free range, our aim was to make it as delicious as the rest of our products. We succeeded, and our gluten free range is 100% delicious with 0% gluten. All our gluten free products are tested to ensure that there are no detectable traces of gluten.

“Research shows there is a growing demand for gluten free options with a growing rate of people being diagnosed with Coeliac Disease. Estimations are that 60,000 to 70,000 New Zealanders have coeliac disease (1 in 70),” explains Parker.

Molly Woppy’s gluten free cookies are stocked in selected supermarkets and retail stores nationwide, and are available online at www.mollywoppy.co.nz For orders contact info@mollywoppy.co.nz or call 09 828 6095

“OUR COOKIES CONTAIN PREMIUM QUALITY INGREDIENTS” ALISTAIR PARKER, DIRECTOR FMCG BUSINESS - JUNE 2022

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[ fresh produce ]

BEST IN SEASON June sees the start of winter with the country bracing for a few months of cold and wet conditions. While that may not suit all crops – it’s the perfect time for hearty winter favourites such as potatoes, pumpkin, kūmara, carrots and swedes to shine. As slow cookers and casserole dishes become the cooking method of choice, these vegetables will continue to be popular through the next 3-4 months.

Shoppers looking to add fresh green flavours to their diet will be on the lookout for Brussel’s sprouts, broccoli, kale and cabbage, while cauliflower is still in demand.

Navel oranges are in good supply along with Satsuma mandarins, both will be popular on the side-line at winter sports events. Grapefruit are in good supply this month and persimmons, tamarillos and feijoas will give a burst of colour to winter fruit displays.

Kiwifruit New Zealand’s largest fruit crop, kiwifruit, are at their very best in the cooler winter months.

Grown predominantly in the Bay of Plenty and Gisborne regions, the green kiwifruit season runs from April to January and the gold kiwifruit from April to October. Small volumes of the Ruby Red Zespri kiwifruit were also picked this year and provide a good contrast to traditional kiwifruit displays.

What to look for: Choose plump, fragrant fruit without blemishes. There are now six Zespri varieties to choose from – Green, Organic, Sweet Green, SunGold, Gold and Ruby Red Storage/handling: New season fruit will likely be quite firm so condition your fruit before putting out on display. A firm Zespri kiwifruit that is stored at room temperature will take about 2-3 days to ripen.

Nutrition: Kiwifruit are good sources of vitamin C and folate which both support mental wellbeing.

They are also a source of vitamin E, which acts as an antioxidant to help protect the body against free radical damage.

Parsnips Available all year round but at their best and sweetest in the cooler months, Parsnips are often regarded as a winter staple. Parsnips are a root vegetable belonging to the carrot family and have a delicate, sweet and slightly nutty flavour.

They come in a variety of shades, from bright white to creamy tones and even gold. Consumers can easily mistake gold-coloured parsnips as not fresh, but this is not the case. As soon as parsnips come out of the ground they start to oxidise, hence the golden colour. Like this, they are still fresh and perfectly fine for eating.

What to look for: Smooth, firm parsnips, ideally 5-7cm in shoulder diameter and 19-25cm long.

Storage/handling: Parsnips tend to wilt faster than 12

FMCG BUSINESS - JUNE 2022

carrots, so stock rotation is essential. Store parsnips at 0°C, keep moist and allow adequate air circulation to prevent condensation and premature decay from occurring.

Nutrition: Parsnips are a good source of vitamin K, essential for healthy blood clotting. They are also a good source of dietary fibre, which supports digestive health.

Lemons Lemons are a staple fruit used in a variety of cooking styles.

Always in demand, these citrus stars should be kept on shelves year-round.

The main crop of New Zealand lemons “LEMONS is harvested from CONTAIN A early May until late October, however GOOD SOURCE smaller volumes are OF VITAMIN C, also picked on the shoulder seasons.

WHICH HELPS Lemons are imported SUPPORT from December to March to supplement IMMUNITY” local supply.

What to look for: Lemons should be heavy for their size with bright yellow skin and a pleasant fragrance. Thin-skinned lemons are juicier and thickskinned ones are better for zest. Avoid lemons that are soft or with any sign of mould.

Storage/handling: Lemons will not ripen any further after they are harvested. Like all citrus, lemons begin the decomposition process as soon as they’re picked. For lemons, this means drying out—a process that can be slowed by refrigeration, so keep cold where possible.

Nutrition: Lemons contain a good source of vitamin C, which helps support immunity, a healthy metabolism and reduces fatigue.

Join us on

www.unitedfresh.co.nz

Treat yourself to some R&R Whittaker’s new limited edition Relax and Refresh flavours feature botanical extracts infused into Whittaker’s Creamy Milk Chocolate™. Designed to capture the feelings of relaxation and rejuvenation, “Relax” heroes calming Passionfruit and Chamomile, with “Refresh” showcasing invigorating Peppermint and Lavender. Treat yourself, because we all need a bit of R&R. Maybe two bits. www.whittakers.co.nz

Introducing RJ’s Fabulicious Grape Sherbert Crunch In a tasty nod to the ‘90s, Kiwi confectionery brand RJ’s has added Fabulicious Grape Sherbert Crunch to its family of 100% palm oil free treats. Sweet tooths are loving the winning combo of on-trend, tangy grape chew with the famous Fabulicious sour sherbert and satisfying a dash of crunch! rjs.nz

Winter roasts just got easier Heartland NZ Fresh Foods has added to their delicious range of 100% NZ pork products. Support local with the new Sweet BBQ Pork Ribeye Roast (650g) – perfect for easy roast dinners, or the Pork Loin Wrapped in Bacon (800g) – enough to feed the whole family, or provide yummy leftovers! heartlandfresh.co.nz info@freshpork.co.nz Phone 0800 476 463

Strong tea now in new decaf option Lovers of strong tea no longer have to compromise on the taste they love when looking for a decaf option. Bell are excited to bring tea lovers the full-bodied flavour of their Kenya Bold… now without the caffeine! Bell Kenya Bold Decaf 50s will be available from 27th June 2022 (RRP $7.49).

For orders contact Sue Evans, Customer Relations & Logistics Manager. nz-customerservices@JDEcoffee.com

A tissue for all seasons With support from NZ retailers, designers and shoppers, new Facial tissue innovation is here for winter. Gold medal winning Paseo brand is expanding to a bigger box 3ply tissue for every day softness in all seasons.

EarthSmart brand is launching Plastic free packaging & 2ply tissues made from recycled office paper. paseo.co.nz earthsmart.co.nz

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PLANT POWER Vegan and vegetarian products are in hot demand.

Since the launch of their Pams plant-based range late last year, the Foodstuffs team have been adding new products and solutions to help Kiwis make healthier and more sustainable dinner choices.

“Whether you’re participating in meat-free Monday or are just looking for more plant-based alternatives, Pams new range makes it easy and convenient to make positive choices for your family, your planet and your lifestyle – without breaking the bank,” says Emma Wooster, Head of Co-operative Public Relations for Foodstuffs NZ “For customers entertaining guests we have a selection of delicious plant-based dinner options perfect for the barbie. From plant-based sausages and crumbed chicken tenders to falafel burgers, there’s something delicious for everyone to enjoy.

“For those looking for a quick and simple meal solution, Pams offer a fantastic range of vegetarian ready-to-eat meals which includes a creamy tomato pasta bake, a plant-based lasagne, a vegetable korma and rice and even a vegetable butter curry,” says Wooster.

Spoilt for choice Simplot NZ is answering the call from consumers in search of quality, tasty plant-based products, by delivering a strong innovative pipeline over the past 12 – 24 months.

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Birds Eye’s Plant Based range, which launched into market nine months ago with five products, has quickly become a consumer favourite with the brand growing to 13% RSV share of the category in the latest quarter*.

The successful Birds Eye frozen Veggie Rices range has also recently expanded into meal base solutions with the new Veggie Rice Taste Creations range. Both the Veggie Rice Risotto and Veggie Rice Fried Rice Style offer consumers a fully seasoned veggie dish to enjoy on their own or with a favourite protein.

“With the frozen carbohydrate replacements segment growing at 60% RSV and Birds Eye ahead of this at 280% in the latest year**,

[ feature ]

“THE SUCCESSFUL BIRDS EYE FROZEN VEGGIE RICES RANGE HAS ALSO RECENTLY EXPANDED INTO MEAL BASE SOLUTIONS” consumers are loving this carbohydrate alternative offering,” says Simplot’s category executive Jayna Sukha.

Over in the shelf vegetables aisle, Edgell is modernising the category, diversifying into snacking and convenience by expanding meal consumption occasions beyond the dinner table. Having first introduced the innovative Snack Time range in 2020, shortly after the launch of the core vegetable range, the total Edgell brand continues to grow with 55% RSV growth in the latest year** across the total portfolio.

“With the snacking occasion resonating with consumers, we have introduced a number of different products to our Edgell range, including new legume/vegetable variants within the Snack Time range, and our new Nourish Bowl range that offers consumers a complete on-the-go plant-based meal options, packed with plant protein and fibre and are available in three delicious flavours: Spiced Lentil; Zesty Cauli Rice and Chermoula Veg Rice,” says Sukha. *NielsenIQ Scantrack QTR to 01/05/2022 **NielsenIQ Scantrack MAT to 01/05/2022

NZ’s only Carbon Zero certified plant-based protein range The Let’s Eat range of plant-based Burger Patties, Tasty Tenders and Golden Nuggets has recently been made a Toitū net carbonzero certified product, making it New Zealand’s first carbon net-zero plantbased protein range.

Let’s Eat Brand Manager, Tarryn Appleby, says that it gives consumers even more reason to add these delicious products into their weekly meal times.

“We know that nearly 50% of Kiwis have switched to sustainable alternatives, plus with more than 6 in 10 Kiwis having tried or interested in trying plant-based meat products, we’re confident we’re meeting a real consumer demand.”

Since launching in 2020, the locally made Let’s Eat range has seen excellent sales growth. This just goes to show that New Zealanders are certainly eating less meat, and in turn seeking out plant-based alternatives at the check-out. But many Kiwis are also conscious of the wider environmental effects of food production.

Tarryn Appleby, says “we’re proud to be leading the charge by offering a range of delicious, locally made plant-based products that are now also carbonzero certified. It’s all about listening to consumer needs and providing innovative solutions.”

For more information, look us up online at www.letseatplantbased.co.nz; Instagram letseatnewzealand; Facebook Let’s Eat @letseatplantbasedNZ

GET STUCK INTO THIS SNACKABLE goodnEsS Edgell Nourish Bowls and Snack Time ranges are a tasty and easy on-the-go option to get more plant protein and fibre into your diet.

Edgell’s Shelf Veg innovation in meals & snacks growing at 38% in latest QTR*

New flavours

FUELLING UP THE CANNED VEG AISLE *NielsenIQ Scantrack data QTR to 01/05/2022

[ feature ]

“KIWIS HAVE BECOME INCREASINGLY HEALTH CONSCIOUS AND SENSITIVE TO ANIMAL WELFARE” CHERIE PALM, GNS IMPORTS OPERATIONS MANAGER

Linda McCartney A pioneer in the meat-free category, Linda McCartney, wife, mother, activist and photographer started Linda McCartney Foods almost 30 years ago.

“GNS Imports Ltd is proud to be associated with this brand as the sole importer and distributor of the products in New Zealand,” says Operations Manager Cherie Palm. “Sales of LMF products are continuously growing because there is never a compromise on taste

or quality – everything is made with the same care and compassion embraced by Linda McCartney.

LMF are committed to making high quality dishes that are suitable for any occasion and convenient for everyone. The range includes classic, hearty dishes and each of these are made with a selection of specifically chosen ingredients.

Palm explains: “Kiwi appetites for plant-based diets are growing and, according to recent research,

LET’S CREATE BETTER PLANT-BASED SOLUTIONS, TOGETHER.

HAWKINS WATTS NEW ZEALAND

INGREDIENTS & SERVICES

SALES@HAWKINSWATTS.COM HAWKINS WATTS NEW ZEALAND HAWKINSWATTS.COM

TRENDS AND INSIGHTS BESPOKE BLENDING CONCEPT DEVELOPMENT

TEXTURE NUTRIENTS COLOUR FLAVOUR AND MORE

[ feature ] meat free diets have grown 50% since 2019 in New Zealand. Colmar Brunton surveys have further shown that 15% of New Zealanders are vegetarian or mostly meat free. LMF products are not only enjoyed by vegetarians, but also those incorporating vegetarian meals once or twice a week, particularly in the under 35 age demographic.”

The majority of LMF products are vegan friendly, including Sausages, Sausage Roll, Vegemince, Red Onion & Rosemary Sausages & Country Pies.

The vegan products are clearly labelled 100% vegan, and all the vegetarian products, namely Mozzarella Burgers and Cheese & Leek Plaits, are Vegetarian Society approved. As a member of the RSPO since 2011, LMF have ensured that the products that still contain palm oil fractals are from certified plantations.

“This category is growing annually at an astronomical rate as Kiwis have become increasingly health conscious and sensitive to animal welfare,” says Palm. “About 49% agree that diet changes are needed to help save the environment. The upsurge of vegetarian and vegan options has increased greatly over the last few years, not only in retail but food service as well.

“As the global population rises and the trend

towards meat free increases, this sector is expected to consistently bring innovation. LMF is instrumental in ongoing testing in the UK market to identify trends and continually invests in technology for production as well as innovative research and development, which is highly beneficial to the New Zealand market now and in the future,” says Palm.

“Look out for some exciting new products in development!”

For more information or to order your products contact Cherie Palm sales@gndsimportsltd.co.nz

Two wins for WCF in first-ever NZ Vegan Chocolate Awards The Wellington Chocolate Factory (WCF) won two categories in the inaugural NZ Vegan Chocolate Awards - the Dark Chocolate Category for its Peru Dark Bar and the Milk Chocolate Category for its Coconut Milk Bar. The win for the Peru Dark Bar joins six international and national awards under its belt for the vegan bar. WCF’s limited-edition ANZAC bar and its Drinking Chocolate were also Runners Up in their categories.

The 2022 Awards are the first from the Vegan Society of Aotearoa New Zealand and recognise the

• Meat- free Products • Created as simple & natural as possible.

• Free from genetically modified ingredients & trans fats.

Distributed by

Email: info@gnsimportsltd.co.nz Website: www.gnsimportsltd.co.nz Phone: +64 211709584 / +64 21635414 Contact your Storelink representative for more information: 09 475 9039 FMCG BUSINESS - JUNE 2022

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[ feature ] incredible growth and variety available to vegan chocolate fans. In deciding winners, judges tasted as many as 36 different bars in each category.

The judges described WCF’s Peru bar as super smooth with a very appealing aroma, while the Coconut Milk Bar has excellent colour, aroma and shine.

WCF co-founder Gabe Davidson says they’ve been making plant-based chocolate since opening almost ten years ago and began at a time when it wasn’t so easy to find.

WCF continues to innovate and create new and exciting vegan bars. Its latest collaboration with Scapegrace - the Espresso Martini Dark Chocolate Bar - is vegan.

Gabe Davidson says they’re always looking for more ways to create great tasting plant-based chocolate.

Found in the heart of Eva Street (Wellington’s most sought-after foodie laneway), the Wellington Chocolate factory has been lovingly handcrafting New Zealand’s finest small-batch chocolate since 2013.

WCF co-founder Gabe Davidson

“THE 2022 AWARDS ARE THE FIRST FROM THE VEGAN SOCIETY OF AOTEAROA NEW ZEALAND”

18

FMCG BUSINESS - JUNE 2022

NZ Dairy Free Awards winners The annual Dairy Free Awards highlighted the best of New Zealand’s available plant-based dairy alternatives earlier this year. The Awards cover four categories: ice cream, milk, yoghurt and butter, all fully plant-based, high quality, delicious and nutritious.

Dairy-free butter winners Vutter ran away with the competition this year, while in the ever popular yoghurt and ice cream categories, Little Island won with their delicious organic Chocolate ice cream and Raglan took the yoghurt title with their tasty Vanilla Bean coconut yoghurt. The runners up were Duck Island Salted Chocolate Brownie ice cream, The Collective Plant Natural Yoghurt, Otis Oat Milk The Barista and finally Olivani for the butter category.

Oat milk was the clear winner in the plant milk section this year. All nominations were for various oat milks, not a single soy or almond milk was to be heard of! This year it seems consumers are acutely aware of the environmental consequences of their choices,

and a locally grown, made and packaged in the South Island, Boring Oat Milk was the clear winner.

“It’s wonderful to see the increasing number of dairyfree products out there, proving the market is booming and the public’s appetite for plant-based is growing.

Our Awards set a high bar for companies to step up to, providing quality Kiwi products available to all,” said Claire Insley, media spokesperson for the Vegan Society.

“The companies receive acknowledgement for their hard work, vegans know they can trust the winning companies and it takes the guesswork out of it for those dealing with allergies and non-vegans looking to reduce their dairy intake.”

Insley commented: “With the Climate Change Commission’s report last year, it is clear that we have to act now to mitigate our carbon emissions. Eating plant-based meals can reduce your carbon footprint due to food by up to 73%. The Vegan Society offers resources for those wishing to take up plant-based eating to help the environment, improve their health and show compassion for the animals.”

Molly Woppy’s Plant Powered Cookies Molly Woppy’s plant-based range was launched last year in August and the popular range is stocked in supermarkets and retail stores nationwide.

“Here at Molly Woppy we always try to do the best we can when it comes to the environment, we are proud to have a plant-based range of cookies that are innovative and delicious,” says Director Hayley Molloy.

“Plant-based eating is a trend that continues to grow worldwide. Many New Zealanders are looking to reduce their meat and dairy intake – not only for their health, but for the planet and look for alternatives – which is where our innovative range of plant-based cookies come in.”

“Sharing the love is what Molly Woppy is all about and that love extends to how we care for our people and our planet. We wanted to create a vegan friendly, plant-based cookie to give an option for those who can’t or don’t want to consume animal products and to have a range of cookies that have less of an impact on the environment.

“We believe in baking for everyone, no matter what their food preference – so with love, dedication and lots of taste testing we developed our new range of Plant Powered Cookies.

These unbelievably tasty products are filled with quality, vegan-friendly ingredients – we use coconut butter instead of butter, real dark chocolate, toasted coconut and fruits. We now have three delicious Plant Powered choices: Dark Choc Caramel Popcorn, our Choccy Coconut Ruff, and our Oaty Apricot Super Seedy.”

Contact info@mollywoppy.co.nz or call 09 8286095. Find out more about Molly Woppy at www.mollywoppy.co.nz

[ trends ]

SEEDS OF GROWTH IN PLANT-BASED FOODS The plant-based food revolution continues to break new ground, as data reveals shoppers are increasingly seeking out dairy and protein alternatives.

Rising awareness of health and wellbeing, a desire to make the budget go further and easier access to plant-based foods has seen the trend becoming even more mainstream in 2022. This is the conclusion from market research experts IRI, who have been tracking how New Zealand consumer attitudes towards plantbased foods have evolved in recent years.

Last year Burger King launched its plant-based Rebel Whopper burger, and KFC in the US has added Beyond Meat’s chicken-free chicken to its menu.

IRI have found that as consumers prioritise their health, there is a widespread perception that ‘plantbased’ equals ‘better for you’, with losing weight, managing cholesterol and a desire to improve wellbeing key drivers for reducing meat and dairy intake.

It's not about going all out vegan, or even vegetarian! 46% of shoppers see themselves as meat reducers or flexitarian, and 28% are dairy reducers, which means they’re choosing both traditional meat and dairy and alternative proteins/plant-based milks in their basket1.

Food for thought With more Kiwis choosing plant-based alternatives, how does that translate in the shopping basket?

Grocery Milks hit the top 10 growing categories in grocery food and beverage for the first time in May with +24M growth vs YA (+14.3%)2, and although this category includes dairy the majority of the gains ($18.4M)2 came from Total Plant based milks. This has been driven by the on-trend Oat Milk segment, worth $26.2M with a whopping +16.7M growth on the previous year. Market share is dominated by Sanitarium (36.0%) and Vitasoy (26.3%), with a strong private label presence (16.0% share), which points to plant-based milks becoming mainstream and viewed as a commodity by consumers2.

There is also a rise in barista-style milks specifically made for hot drinks, with the sub-segment worth $8.2 million and up $6.3 million on the previous year2. This ties in with the flexitarian trend, with plant-based milks increasingly being used alongside dairy, i.e. almond milk in smoothies, oat milk in coffee and dairy milk in cooking and baking.

Among plant-based meat alternatives, tofu is still the largest segment, worth $13 million and up 15.4% compared to 2021, but newer variants such as vegetarian chicken (up 32.7%), vegetarian mince (up 40.2%) and bacon (up 20.9%) are becoming popular.

Life Health Foods boast four of the top five vegetarian brands, however Tonzu (tofu products) and ready meal brand Plantry are driving growth, up $1.1m and $1.0m respectively2.

The trend looks to keep growing for the foreseeable future driven by an interest in health and wellbeing, the ongoing COVID environment and the resultant worsening economy.

“We had a lot of interest last year in our first-tomarket Plant-Based Foods Project,” said Julie Bramley, who heads up thought leadership and research solutions at IRI. “At the time plant-based foods were growing faster than total food & beverages at +11.5% compared to +0.7% for total prepackaged grocery. We’ll no doubt be repeating this project to understand the impact that inflation has on plant-based food choices. In our most recent Cost of Living study 43% of household shoppers agree they are eating less meat to save money.”3 There is little doubt plant-based foods will increasingly be a key trend in grocery, with the pandemic only fueling growth. The COVID environment has not only led to heightened interest in health and wellbeing, it has also created a worsening economic outlook – and with alternative proteins expected to become dramatically cheaper than meat in the coming decades, it seems little will derail their popularity.

Sarah Ensor Senior Insights Analyst IRI New Zealand

1. IRI NZ Plant-Based Shopper Survey October 2021 2. IRI Market Edge Grocery, Total Key Accounts, MAT to 01/05/2022 (Excludes alcohol) 3. IRI Cost of Living Survey April 2022

PLANT BASED MILKS Dollars (000s)

Dollars (000s) Growth % YA

Total Plant Based Milk*

$98,671

22.6%

Total Almond

$32,507

2.6%

Total Soy

$27,729

2.4%

Total Oat*

$26,154

175.6%

Total Coconut*

$6,461

15.0%

Total Other Nut

$2,963

-9.0%

Total Rice

$2,858

-14.3%

* denotes value AND unit growth > +2.0% Source : IRI Market Edge Grocery MAT to 01/05/22 (Selected segments)

“THE GROWTH OF PLANT-BASED ALTERNATIVES IS EVIDENT IN BOTH SUPERMARKETS AND QUICKSERVICE RESTAURANTS. ” FMCG BUSINESS - JUNE 2022

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BETTER BAKING What’s popular in the baking aisles at local supermarkets right now?

Countdown Baking Category Manager, Katrina de Witte says: “Over the last couple of years, we’ve seen more and more Kiwis gravitating towards products that have ‘better for you’ attributes in the baking category, for example sugarfree and keto options. 2022 is shaping up to be the same with our range of sugar free cake mixes and cooking chocolates very popular with customers, non-wheat flours becoming a favourite for many, and our new raw, keto, nobake slice mix finding its way into quite a few shopping trolleys!

“We’re also seeing the at-home baking trend stick around, with lots of customers who picked up the spatula over lockdown staying with the habit and upgrading their baking materials - for example premium vanilla extract options are finding a home in many pantries.

“We’re looking forward to developing our baking products offering even further to help Kiwis find exactly what they need for the perfect cake, muffin or slice on our shelves! Look out for a new and improved range of sprinkles, which will be hitting shelves soon,” says de Witte.

From Tonga to Tauranga to supermarket baking aisle staple Helping the people of Tonga was the Heilala founder’s mission - long before the company was even formed. Following a cyclone in the northern islands of Vava’u, retired Papakura farmer John 20

FMCG BUSINESS - JUNE 2022

Ross assisted with the clean-up to get villagers back on their feet. After being gifted a plot of land to provide employment for people in the village, John set to work creating a vanilla plantation and subsequently partnering with other growers throughout Tonga.

Nearly 20 years later, Heilala supports 400 vanilla farming families in Tonga and donates seeds, sanitation and school supplies to Tongan communities through the Heilala Vanilla Foundation. Following Tonga’s recent volcanic eruption and tsunami, Heilala’s relief effort raised more than $180,000. With a goal to employ 200 women in Tonga by 2025, each bottle of Heilala Vanilla sold contributes to their humanitarian mission, providing direct support to 14 Tongan villages.

Bridget Ensor, Business Sales Manager, Heilala Vanilla says: “Heilala’s bean to bottle philosophy continues to resonate with conscious consumers as they are involved in every process of its production - from planting, growing and harvesting to processing and marketing. This helps Heilala guarantee quality, control sustainability and keep its mission of supporting Tongan families at its heart.

“The company’s premium vanilla range, which includes pure vanilla extract and pure vanilla bean paste, can be described as having a creamy, sweet and rich profile. These highly concentrated vanilla products add a well-rounded flavour that adds depth to desserts and baked goods,” says Ensor.

For more information or to order Heilala Vanilla, contact your Selling Solutions representative on 0800 735 542 or email info@sellingsolutions.co.nz

[ category insights ]

“DONOVANS PREMIUM BAKING RANGE IS LOVINGLY CRAFTED IN NEW ZEALAND” BAKING PRODUCTS

Donovans Much-loved Kiwi chocolatier Donovans makes great Kiwi chocolate for great Kiwi baking.

Donovans premium Baking Range is lovingly crafted in New Zealand using the finest quality ingredients and a touch of Kiwi ingenuity. The range is made with real chocolate and is free from palm oil. It includes delicious Dark, Milk, Caramel and White Chocolate Drops, Baking Chocolate Blocks and beautifully smooth and rich Premium Dutch Cocoa Powder.

Assistant Brand Manager Kate Fisher says: “Since its launch in 2018, Donovans Baking Range has been flying off the shelves and into Kiwis’ pantries. Donovans continues to deliver growth for the Cake Needs and Toppings segment, and the brand has experienced a growth of +13% in the last year alone*, which is in line with premium products driving growth in the category.

“The surge in home baking may have been a product of Covid-19 but the reasons behind baking of relaxation, self-improvement and family connection will remain relevant beyond the pandemic. It is no surprise the popularity of baking products has increased and there is no sign of this slowing up anytime soon. Trends show that consumers are seeking indulgence as moments of comfort.

“Started by the Donovans family in the Waikato 30 years ago, Donovans continues to make delicious premium chocolate products from scratch in the heart of this dairy region.”

For more information contact your Prolife Foods Account Manager on 0800 80 80 88 or visit www.donovanschocolates.co.nz *IRi The Big Picture Grocery NZ – Cake Toppings & Needs Brand Performance MAT to 27/03/22

Secret Kiwi Kitchen New Zealand owned, award-winning Secret Kiwi Kitchen was launched in August 2020 during Auckland’s second lockdown by two local mums, Lulu Taylor and Clare Gallagher.

“Secret Kiwi Kitchen is a great option compared to big multinational brands and we are growing incredibly fast as a company as consumers really love our products,” says Taylor.

With seven kids between them, Lulu and Clare believe in the magic of home baking to brighten any

Dollars (000s)

Dollars (000s) Growth % YA

Total Baking Products

$175,939

5.6%

Natural Sugar

$54,244

5.0%

Flour*

$36,066

4.3%

Baking & Cake Mixes*

$23,617

14.4%

Cooking Chocolate

$22,316

4.9%

Sugar Substitutes*

$10,855

7.8%

Colours/Essences

$8,906

-0.8%

Baking Aids*

$7,513

4.1%

Cake Decorating

$7,393

-2.7%

Gluten Free Flour & Mixes*

$5,030

8.9%

* denotes value AND unit growth > +2% Source : IRI Market Edge Grocery MAT to 24/04/22 (Selected segments)

day. Wanting to make baking accessible and easy for everyone, they lovingly created a range of easy to make one bowl mixes that feature premium New Zealand ingredients and all-natural ingredients.

The product range includes Chocolate Cake & Cupcake mix; Triple Fudge Brownie mix; White Chocolate Blondie mix and Buttermilk Pancake mix.

“Our Pancake mix is an excellent alternative to the big plastic jug brands, it has a resealable pouch, so individual pancakes can be made up. We are really proud of our mix and the fluffy pancakes it produces and also crispy-edged waffles. We use all natural premium ingredients such as Dutch cocoa in the brownies and real vanilla extract from Heilala,” says Taylor.

“We are very proud to be a woman and mixed ethnicity created and run company.

We are dedicated to improving our social sustainability both internally as we grow as a company and externally towards the wider community. We support numerous charities and social enterprises through partnerships and product donations.”

For more information contact Clare Gallagher ph 022 373 0017, email info@secretkiwikitchen.com , or visit www.secretkiwikitchen.com

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@intermedianz.co.nz

FMCG BUSINESS - JUNE 2022

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HOT

DRINKS Local suppliers share their news, product launches and best sellers.

Health and wellness, low caffeine and decaf options are among the top trends in tea and coffee right now.

Everybird Half-Caf opens up the coffee category New specialty coffee brand, Everybird, has launched a blend designed to tackle 3pm slumps, caffeine jitters and late-night study sessions. It’s called Half-Caf and it’s shaking up the coffee aisle.

Made with a 50/50 blend of decaf and well… caf, it has just enough oomph to give consumers a little boost but not so much that they’ll be up all night. Not only does Half-Caf lend itself to a range of new coffee occasions, it challenges the idea of decaf entirely, delivering a bold, chocolatey flavour profile that doesn’t taste like decaf at all.

“Half-Caf offers a mid-point that appeals to both decaf and conventional coffee drinkers,” says Brand Manager, Sam Taylor. “It’s opening up the category and hitting a niche that hasn’t yet been explored in NZ grocery.”

Unlike many other decaf products in the market, Half-Caf is decaffeinated without the use of any chemicals. It’s processed by Swiss Water® who use only time, temperature and water to remove the caffeine.

While Half-Caf is a seemingly new concept in NZ, it’s been growing in popularity internationally. Sam Taylor suggests it may already have an underground following here in NZ. “When we were developing the blend, we started hearing from all these people who were secretly making their own Half-Caf at home. It cemented the idea that there was a need for something in-between decaf and a fully-caffeinated coffee — and we’re only too happy to give the people what they want.” everybird.co.nz hello@everybird.co.nz

Dilmah “Our brand, Dilmah is celebrating 30 years in New Zealand this year,” says Nicole Campbell, Head of Sales & Marketing – Dilmah NZ Ltd. “Although we have changed our look in recent months, the great taste, natural goodness and ethical purpose have stayed true to our Founder’s pledge made 30 years ago – to offer the finest tea, with quality and integrity.

“HALF-CAF OFFERS A MIDPOINT THAT APPEALS TO BOTH DECAF AND CONVENTIONAL COFFEE DRINKERS” EVERYBIRD BRAND MANAGER, SAM TAYLOR 22

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[ category insights ] “We have a focus this year on delivering NPD, based on consumer trends around health and wellness. The tea plant, Camellia sinensis is packed with antioxidants and we plan to combine this naturally occurring goodness with natural flavours so consumers get the best of both worlds. Keep a look out!

“There’s no doubt consumers are looking for quality within the traditional Black and Green Tea segments. ‘Quality with no compromise’ is one of Dilmah’s key values and consumers agree.

“Our gourmet products, Dilmah English Breakfast and Dilmah Earl Grey are growing at 5x the category and it’s worth noting Dilmah Premium Extra Strength is also going from strength to strength – excuse the pun! (6.8% growth vs Tea Category 4.7%).

“We are also very proudly Readers Digest Most Trusted Tea Brand 2022. It’s the simple Dilmah ethos of Taste / Goodness / Purpose that resonates with consumers and we are humbled to have once again received the Reader’s Digest Trusted Brand for 2022, making it eight years in a row! Thank you to our loyal Dilmah drinkers!”

Ref: Iri Marketedge MAT Value Growth NZ Grocery to 27/03/22. Tea Category +4.7% value vs YA. Dilmah English Breakfast 23.3% value growth vs YA. Dilmah Earl Grey 25.4% value growth vs YA. Dilmah Premium Extra Strength 6.8% value growth vs YA

Madura Premium Blend 50 Tea Bags Madura Tea Estates is nestled among the pristine rainforests and rural farmland of northern New South Wales in Australia.

Natalie Loemker from Madura Tea Estates told FMCG Business: “The much-loved hero of our black tea range, our Premium Blend is a consistent favourite celebrated for its full-bodied flavour, strength of character, and versatile attitude. Our Premium Blend can mix it up with any crowd.

Whether you’re making a brew where first impressions count, or your neighbour has dropped in for a casual cuppa, this pure tea with a timeless taste will make everyone feel like a VIP. “We are excited to announce the transition to a 100% natural plant-based PLA tea bag paper in 2021. The fully sustainable and renewable fibres are made from a selected blend of highquality Manila hemp, cellulose and biopolymer made from natural plant material. Our commitment has always been to move to a 100% natural product that is biodegradable and compostable.

“Our product’s profile and characteristics is based on a selection of the finest teas from Sri Lanka, India, south east Asia and our own Australian estate, chosen at their peak, ensuring the quality of this, our most popular blend. A unique, full bodied, bright, strong tea, crafted to suit the fussiest of tea drinkers, with or without milk,” says Loemker.

For more information visit maduratea.com.au

[ category insights ] New Decaf option from Bell Tea

HOT DRINKS Dollars (000s)

Dollars (000s) Growth % YA

Total Hot Drinks

$501,407

7.6%

Coffee Instant

$113,574

1.0%

Coffee Mixes*

$80,891

10.5%

Coffee Ground*

$54,478

6.5%

Tea - Black

$51,237

-0.8%

Coffee Pods*

$47,834

12.9%

Hot Chocolate

$39,704

4.3%

Coffee Beans*

$35,488

23.5%

Cordial*

$34,461

14.4%

Tea - Fruit/Herbal

$25,901

3.1%

Tea - Green

$8,129

-4.8%

Tea - Instant/Other*

$6,725

236.6%

Coffee Syrups/Whiteners*

$2,984

9.6%

* denotes value AND unit growth > +2% Source : IRI Market Edge Grocery MAT to 24/04/22 (Selected segments)

Tea drinkers looking for healthier options including decaf no longer have to compromise on that strong taste they love. Bell are excited to bring tea lovers the full-bodied flavour of their Kenya Bold… now without the caffeine!

Bell Kenya Bold Decaf 50s will be available from 27th June 2022 (RRP $7.49) and is perfect for tea lovers who want to avoid caffeine.

“Black tea consumption drops off in the evening with many tea drinkers wanting to avoid caffeine before bedtime, but we can now encourage a new usage occasion and retention of black tea buyers through more varied caffeine free options,” explains Brand Manager Rachel Crook.

For orders contact Sue Evans, Customer Relations & Logistics Manager nz-customerservices@JDEcoffee.com

Reunion – Limited Edition

“THE LATEST LIMITED RELEASE FROM HAVANA COFFEE WORKS, REUNION, HAS LAUNCHED ONTO SUPERMARKET SHELVES ACROSS THE COUNTRY.”

Havana Coffee Works have been leading the coffee revolution in New Zealand since 1989.

Back then, there were just four coffee companies roasting in New Zealand.

The industry has since grown substantially, but from the beginning, Havana has stayed true to their vibe and vision – roasting the COFFEEUFEEL, having fun, being connected to the community and celebrating the origins of coffee.

Plus drinking a heap of epic espresso!

The latest Limited Release from Havana Coffee Works, Reunion, has launched onto supermarket shelves across the country.

Reunion evokes the vibrant sweetness of berry jam with a smooth macadamia finish. A feeling akin to the warmth of good company under the late summer sun.

Get your hands on a bag of this delightful blend at selected supermarkets.

Looking for more information on the #COFFEEUFEEL, email coffeeufeel@havana.co.nz

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@intermedianz.co.nz 24

FMCG BUSINESS - JUNE 2022

[ sponsored content ]

FRESH MEDIA OFFERS BRANDS ALTERNATIVE TO IN-STORE SAMPLING

Auckland business Fresh Media with their platform fresh.co.nz is launching a new opportunity for brands to get their products in front of hungry customers.

Already known for their full-circle marketing services, Fresh Media is now releasing limited edition occasion-led food boxes, complete with recipes and video instructions for families to follow.

A limited number of boxes will be released each time, containing ingredients for up to 5 meals – enough for a family of four to eat over a weekend or utilise in a larger gathering.

Founder/Director Mark Nelson says the inclusion of bespoke recipes showcasing each brand is the perfect opportunity to by-pass in-store sampling and go direct to the customer experience – especially with concerns for both brands and consumers around safety and hygiene.

“Brands will receive direct genuine customer feedback. We’re now closing the loop, and offering full circle brand exposure and experience,” he says.

Fresh recipe designers and food stylists work to create the marketing content for each ingredient / product, which is then supplied back to the brand for their own use.

Micro-influencer campaigns will be run around each

An added feel-good for all brands involved, for each box sold, Fresh is providing a smaller food box to a family in need across Auckland and the Waikato.

“Customers who buy a Fresh First Food Box will know they are helping others, and it’s the perfect opportunity for us to give back to communities too – it’s something we are looking to incorporate with all our boxes going forward,” says Nelson.

Fresh Media is working with New Zealander of the Year Local Hero Dave Letele and his organisation Buttabean Motivation to deliver the Auckland “pay it forward” food boxes.

The first Fresh First Food Box will be delivered on Thursday 23 June in time for Matariki weekend. Further boxes will be released throughout the year, and Fresh Media plans to extend the offering into the Waikato and Bay of Plenty areas over the coming months.

For all enquiries contact Mark Nelson, Founder / Media Director, Fresh Media, mark@fresh.co.nz or ph 021 756 622

release, and customers will be encouraged to share their recipe creations/unboxing moments on social media to guarantee they get first choice of securing the next box.

“We’re an extension of their marketing team, we know the brand, we know what they need, so we create content that brings the brand and customer together in a positive and tested experience.”

Initially available only in Auckland, Fresh First Food Boxes will be sold to customers at a value-added price on a first-come first-served basis, delivered free to their homes. Messaging will centre around the chance to taste top NZ brands with easy-to-follow recipe videos, and supported by the opportunity to also “pay it forward” to another family.

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[ good business ]

NEW TRADE CERTIFICATION SYSTEM TO BE ESTABLISHED The Government is investing $20.3 million to modernise New Zealand’s trade certification system, which will help build on our global reputation for producing trusted food for export.

“This investment from Budget 2022 helps facilitate New Zealand’s trade with other countries which is deeply important to our economy and the well-being of our communities,” Minister for Food Safety Dr Ayesha Verrall said.

“The certification system provides the assurance that New Zealand’s exports meet importing countries’ requirements and supports more than $35 billion worth of food exports each year.

“Requiring certification from importing countries also helps protect our borders from unsafe food and unwanted pests and diseases.”

New Zealand’s current system is electronic for some sectors, but other

Minister for Food Safety Dr Ayesha Verrall

sectors are largely paper-based. The new system will meet the demands of businesses and trading partners for a modern digital system able to support all sectors.

A digital system will ensure we meet businesses and customers’ needs for high levels of traceability through the supply chain.

“Several of our key trading partners, including Australia, China, the European Union, UK and ASEAN markets are already digitising their trade systems to support efficient trading. The new system would help keep pace with developments overseas.

“Our food and fibre sector is leading New Zealand’s economic recovery. This investment in export infrastructure is a key part of the Government and sector’s 10-year roadmap, Fit for a Better World,” said Dr Verrall.

[ profile ]

DISCOVER THE ANCIENT REMEDY FOR GOOD HEALTH New Zealand family-owned Greenlea Premier Meats has launched a new brand, Restore bone broth and bone broth tonics. Growing awareness of health and wellbeing is driving sales of drinking bone broth around the globe, and Greenlea are the first in the New Zealand market to create and range a bone broth product specifically designed as a beverage.

Although it’s been around for generations, bone broth is enjoying a resurgence in popularity as consumers look to their diet for sustainable health and wellness. Many prefer seeking natural forms of macro- and micronutrients from food rather than taking a pill or supplement.

Bone broth is essentially protein and water.

The protein is derived from animal bones cooked for long periods of time to break down the material that forms the skeleton, which includes amino acids. Bone broth can be thought of as a dose of building blocks that the body then uses to rebuild itself.

Although there is very little scientific 26

FMCG BUSINESS - JUNE 2022

research linking bone broth to specific health outcomes, much is known about the usefulness of amino acids. Amino acids are the component parts of proteins, and proteins are essential for life. The most abundant protein in the body is collagen. Collagen is found throughout the body in hair, skin, nails, muscles, bones, tendons, ligaments, organs, blood vessels, the intestinal lining … the list goes on. Glycine, an amino acid, has been linked to repair of the intestinal lining, which is probably why bone broth has become associated with gut health.

Other amino acids found in bone broth are known to support the immune system.

Launched in 2021, Restore bone broth includes both chicken and beef varieties and is available in both plain versions and “tonics”.

The tonics have been blended with herbs, spices, and other ingredients to create a flavourful beverage. The ingredients, such as manuka honey, lemon, ginger, and turmeric, have been carefully selected for their own beneficial properties.

[ cover story ]

A TISSUE FOR ALL SEASONS – COTTONSOFT NZ

In a time when hygiene features so highly in Kiwis everyday lives, Cottonsoft NZ has continued to lead development of solutions to support our community, category and the environment.

“After Paseo tissues won another Black Box gold medal for consumer endorsement last year, we decided to expand the offering and launch tissues from our successful EarthSmart brand,” says Malcolm Everts, Marketing & Sustainability Manager – Cottonsoft Ltd and Chair – Soft Plastic Recycling Scheme.

“With support from local retailers, designers and insight from shopper research, further innovation has been developed to fill our shelves and displays with facial tissues as we head into the winter season.

“Though Covid-19 has caused supply and freight disruptions for both our Auckland and Dunedin based operations, Cottonsoft has been able to maintain and increase supply of the Paseo facial tissues,” says Everts.

Community Paseo has recently stepped in to help out our wider communities in isolation – from Victoria University students in hostels, to those most in need via the government purchasing network, and even influencers isolating with Covid-19. The Generalist PR distributed ‘Isolation Care Kits’ to key NZ influencers, including Paseo tissues, frozen food, Pitango Soups, healthcare products and even some sweet treats! It seems no-one is immune from this season’s virus, let alone hayfever, allergies and the extended sneezing season of our endless summers!

190-sheet box of everyday white tissues, to deliver more 3-ply softness every day,” says Everts.

Paseo TV is on-air with further TV, trade and social media building up to support the category as NPD appears on shelf for winter.

Everts adds: “Cottonsoft will also launch a new brand into the facial category with EarthSmart, offering a soft, mainstream quality tissue. The tissue is made from recycled office paper or rapidly renewable fibre (RRF) with packaging designed and illustrated locally, extending from our locally made EarthSmart AquaWipes baby wipes and EarthSmart 360 toilet tissue.”

Environment Both Paseo and EarthSmart tissues are made from sustainably sourced and rapidly renewable fibre (RRF), plus EarthSmart 180s tissue is made from recycled office paper. EarthSmart packaging has a unique tissue elevator to support simple dispensing, plus no plastic sleeve for improved recyclability.

All NPD features the Australasian Recycling Label (ARL) system to improve NZ recyclability.

Category With freight and tissue prices escalating, Cottonsoft has developed large boxes of less expensive tissues to support ongoing category growth from both Paseo and EarthSmart brands.

“To support category growth further, Paseo continues to focus on premium 3-ply tissue, delivering the second highest price per tissue of any brand in the category. From June this year Paseo will also offer a FMCG BUSINESS - JUNE 2022

27

[ export ]

SOURCING TRUSTED INTERNATIONAL DISTRIBUTORS TIPS FOR NEW PLAYERS

Cynthia Dearin is an international business strategist, advisor, keynote speaker and author of Business Beyond Borders: Take Your Company Global. With 23 years of international experience, as an Australian diplomat and management consultant, she is the Founder and Managing Director of Dearin & Associates and the International Business Accelerator, helping companies to scale internationally and amplify their impact in the world.

If you’re new to ‘going global’, working with a local distributor can be a good way to enter an international market.

Teaming up with a business that already has feet on the ground can bring huge gains. Whereas your business probably has specialist expertise in a particular field or technology, your partner will have deep local knowledge and a nuanced understanding of ‘how things work around here’.

If you can find a reliable distributor, this approach can supercharge your reach in a new market. Whereas you, as a business owner or single salesperson, can probably do an absolute maximum of one or two hundred meetings a year to promote your product in an overseas market, a distributor with dozens of representatives can do thousands or tens of thousands. Working with a distributor means that the potential for sales overseas is exponentially greater than working alone.

So how do you go about finding a distributor who you can trust?

The task of finding a distributor in a new country can seem extremely daunting, especially when you don’t have many connections there. And it’s no secret that sourcing partners from trade directories or striking up alliances with distributors who ‘discover’ your company at trade fairs can have very mixed results.

It’s often tempting to work with people who approach you and want to work with you, especially if you don’t have a lot of alternatives. But here’s the truth: the most eager potential partners may be precisely the wrong people to work with, because it’s often the case that the arrangement serves their interests better than it serves yours.

If you can find a reliable distributor, this approach can supercharge your reach in a new market.

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FMCG BUSINESS - JUNE 2022

So, when an agent or distributor you meet at a trade show tells you how much they love your product and how keen they are to take it on, stand back and do your analysis. Make sure that the partnership is one that will really serve your interests before you sign up. The take-home message here?

‘Select partners. Don’t let them select you.

Do your research Before choosing an overseas partner you should do rigorous research and speak with a range of potential distributors – perhaps four or five – before narrowing the list. Before making a final decision ask your potential partner for trade references, and also consider using a professional credit checking agency to confirm their financial stability.

Wherever possible, you should meet distributors in their own market rather than in your home country.

They should show you the market firsthand, which will give you a feel for how well they know the market and give you a chance to get to know them better as a person.

Exporters who rely only on email communication with overseas distributors often have misunderstandings leading to problematic relationships. While email is ideal for confirming discussions, meeting in person or via video in the early stages can go a long way towards reducing misunderstandings.

Communicate first, contract second.

Before drafting an agreement, you should be in agreement about who does what. Then you should engage legal advice in order to have a contract drawn up. Drafting agreements and making changes when two parties have differing views on core issues can be a waste of time and money, so it is wiser to agree on the big issues first, then start the legal work.

The most important factor in choosing an agent or distributor is that you can establish a close working relationship. Business is much easier to transact if you enjoy working with each other. So, look for a distributor that you feel comfortable with - one that has the right skills and values that align with yours.

Remember that you are relying on your representative’s local knowledge and contacts to win business in the market, so make sure that the relationship is real. You may need to meet several times to build a relationship and work through the fundamentals of how you will work together and what should be included in an agreement.

[ innovation ]

CARBON ZERO CERTIFIED PLANT-BASED PRODUCTS This month’s finalist in the FMCG Business Product of the Year awards is the Let’s Eat range of plant-based Burger Patties, Tasty Tenders and Golden Nuggets.

The plant-based craze is flourishing in our frozen food aisles and this convenient product range is right on trend.

Let’s Eat has recently been made a Toitū net carbonzero certified product, which means it is New Zealand’s first carbon net-zero plant-based protein range. Let’s Eat Brand Manager, Tarryn Appleby, says this gives consumers even more reason to add these delicious products to their meal times.

“We know that nearly 50% of Kiwis have switched to sustainable alternatives, plus with more than 6 in 10 Kiwis having tried or interested in trying plant-based meat products, we’re confident we’re meeting a real

“LET’S EAT HAS RECENTLY BEEN MADE A TOITŪ NET CARBONZERO CERTIFIED PRODUCT.”

consumer demand,” she says.

Since launching in 2020, the locally made Let’s Eat range has seen excellent sales growth.

This just goes to show that New Zealanders are certainly eating less meat, and in turn seeking out plant-based alternatives at the check-out. But many Kiwis are also conscious of the wider environmental effects of food production.

Tarryn Appleby, says “we’re proud to be leading the charge by offering a range of delicious, locally made plantbased products that are now also carbonzero certified. It’s all about listening to consumer needs and providing innovative solutions.”

Let’s Eat also took out the Below Zero Award in the New Zealand Food Awards 2021, which are powered by Massey University.

For more information visit www.letseatplantbased.co.nz

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UCT OF THE OD YE PR A

Do you have a Hero product that stands out from the crowd?

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•F M C

FMCG BUSINESS PRODUCT OF THE YEAR If there’s a tasty tastebud teaser, NPD rockstar, or best seller

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‘Product Of The Year’ - we’d love to hear from you!

PRODUCT OF THE YEAR

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in your portfolio that deserves to be crowned We’ll showcase some of the finalists in upcoming issues and reveal the FMCG Business Product of the Year later in 2022.

UCT OF THE OD YE PR A

To find out more on how to enter please email: trubanowski@intermedianz.co.nz FMCG BUSINESS - JUNE 2022

29

[ James & Wells ]

ARE ‘CLEAN LABELS’ BECOMING MORE IMPORTANT THAN YOUR BRAND?

Stephanie Hadley Associate, James & Wells Since 1979, James & Wells has been at the forefront of innovation in Australasia. We are here to help you grow, leverage and protect your intellectual property. www.jamesandwells.com

There is no doubt that consumer demand for authenticity and transparency is driving the food industry to be more discerning about the ingredients that make up their products. We have become very familiar with the ‘clean labelling’ movement of omitting certain nasty ingredients and attributes and replacing these with wholefood and natural ingredients. Food safety, quality and responsible sourcing have also become high on the list in a pandemic world, so that claims such as “locally grown”, “ethically sourced” and “fair trade” are now common place.

But to what extent are such claims influencing the consumer more than the brand itself? Do products even still need an identifiable brand to distinguish their products from others in the marketplace? I would argue - absolutely.

While a clean label goes some way to informing a consumer about the contents of the product and how it may be derived, produced or sourced, a brand is more than just a visual identifier. Brands are constantly connecting with consumers around values, passions and interests to help create a sense of community, particularly in the online space.

Experiential marketing can build trust for a brand and do just as well to educate and inform the consumer about the product (if not better). If the label were the only touch point for engagement with a brand for a consumer, then perhaps clean labelling would almost supersede this - but it hasn’t.

A brand can also be protected and exclusively owned and controlled legally by registering it as a trade mark. To do so, it still needs to meet certain underlying criteria such as being sufficiently distinctive and not descriptive of the goods or services. This is a permanent legal right for as long as the owner is using the mark and wants to keep it on the Trade Marks Register for the relevant country. Compare this to the descriptive clean label claims which will come and go and vary over time depending on what drives the consumer to purchase.

A registered trade mark or brand is also an asset of the business. The reputation and goodwill associated with a trade mark can increase over time, therefore adding tangible value to your business, whereas clean labels only really contribute to the selling power of the brand at a particular point in time.

A Certification Trade Mark can also prove very useful when trying to create a visual short cut for clean label claims and substantiation. The purpose of a Certification Trade Mark is to show whoever holds the mark, that it meets a certain standard set out by the owner. For example, Coeliac New Zealand has developed the Cross Grain Logo as part of their certification programme to show that certain products meet the standards and are suitable for a gluten free diet. So rather than the mark functioning as a unique badge of origin, it denotes quality and safety.

There is no doubt that clean labelling helps deliver authenticism and brand ethos – but it does not replace the brand. Even Certification Trade Marks which go a tad further in conveying these messages, still need to sit alongside a recognisable and distinguishable brand to drive repeat purchases.

If you need help assessing your labels and brand strategy so that they fit seamlessly side by side, please reach out for assistance by contacting myself at stephanie.hadley@jamesandwells.com or your usual James & Wells advisor.

“THE REPUTATION AND GOODWILL ASSOCIATED WITH A TRADE MARK CAN INCREASE OVER TIME” 30

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[ legal advice ]

REGULATION OF VAPING PRODUCTS The well-known harmful health effects of smoking and in particular its effects on those within the same space as smokers was recognised over 30 years ago in the Smokefree Environments Act 1990. This was updated in 2020 to integrate vaping, with a change in name to the “Smokefree Environments and Regulated Products Act 1990”.

The amendments seek to strike a balance between ensuring vaping products are not sold to young people, while ensuring they are available for those who want to purchase a less harmful alternative to traditional tobacco products. This has given rise to a relatively complex piece of legislation, the provisions of which are continuing to be phased in over time.

The effects of the amendments began in November 2020 with the prohibition of vaping advertising, the prohibition of selling vaping products to people under 18 years old, and the prohibition of vaping in enclosed internal workplaces.

Retailers receiving 50% or more of their total sales from the sale of vaping products can now elect to operate as a “Specialist Vape Retailer”. Any retailer that had not been approved as such by 11 August 2021 could no longer sell vaping product flavours other than tobacco, mint and menthol. From 11 September 2021, all retailers of vaping products have been required to display a notice that no vaping products may be sold to people under 18 years told.

Some important provisions are yet to come into effect. From 25 June 2022, distributors of

vaping products must only distribute products with packaging that complies with regulations, which include that they do not resemble food or cosmetics, they display a message that vaping is harmful to health and that they do not claim that their use is beneficial to the user’s health. That date is 6 weeks after the same requirement was imposed on manufacturers and importers of vaping products, to allow for the rotation of old stock. The flow-on effect is that a further 6-week period is allowed before retailers are required to only sell regulation-compliant vaping products, i.e., from 11 August 2022.

Any business involved in the vaping industry, including manufacturers, distributors and Specialist Vape Retailers, must during January 2023 submit to the Director-General of Health an annual return showing information on sales. Manufacturers and importers must also submit an annual report showing results of all tests conducted during the previous year. Those tests cover a vaping product’s contents and safety and must include a stability programme to monitor the product over its shelf life.

The penalties for contravening vaping regulations are significant (for example a manufacturer or distributor which is convicted of not complying with packaging regulations for vaping products may be fined up to $200,000).

We recommend that any business involved in the vaping industry obtain legal advice about what they are required to do and when.

Philip Muir is a civil litigator at Steindle Williams Legal. swlegal.co.nz

“THE PENALTIES FOR CONTRAVENING VAPING REGULATIONS ARE SIGNIFICANT”

FMCG BUSINESS - JUNE 2022

31

[ FGC ]

SURVIVING A PERFECT STORM

Katherine Rich Chief Executive NZ Food & Grocery Council www.fgc.org.nz

food& grocery COUNCIL NEW ZEALAND

The convergence of demand and supply factors not seen since the 1920s, and the most tumultuous year in the food and grocery industry’s history? They were the two abiding summaries presented to the Food & Grocery Council’s recent AGM. Chairman Mike Pretty, of Kraft Heinz (Wattie’s) was the author of the former, and I talked about the latter.

Mike told members supply-side disruption in our highly-globalised environment over the past year had accelerated the impact of global shifts.

He said the “phenomenal rise in the cost of doing business is probably like nothing we’ve seen before.” Everyone was facing the same issues around commodity and soaring energy prices, and the rising cost of labour and capital. Constrained supply and ingredient and component shortages caused by climate, weather, the Ukraine war, sanctions, export bans in some countries, and shipment delays were costing heavily. Domestically, there were transport issues, worker absenteeism, and labour shortages which were made worse by the impacts of Covid, such as uneven consumer demand, panic buying, and a lack of tourism and immigration.

All this contributed to higher fuel and commodity prices and commodity shortages, and so to a rise in the cost of living affecting everyone.

He said despite the trials and tribulations that made operating as an industry sector difficult over the past couple of years, the number of company startups and emerging brands has not abated, and the beating heart of the industry, the medium and small suppliers, is still incredibly strong.

“The strength in this sector are companies who continue to innovate and invest in local brand platforms and that message is not lost on some in government, who recognise local provenance and local supply chain resilience has been tested like

never before. Having a very strong local industry has actually helped us through the worst of food shortages being felt in many countries.”

I told members 2021/22 was the most tumultuous FGC and its predecessor, GMA, had ever faced as we battled with Covid challenges while contributing to the Commerce Commission’s market study.

The Covid challenges were plenty, with freight and logistics issues forcing members to do things in a different way. And then, what we thought was going to be a limited process, with just one report, ended up being many different cross-submissions and a week’slong conference.

I must say I’m proud of the role FGC played. It wasn’t an easy thing for an association of our size to do, but when I look at the submissions and the work we put in, we created a dossier that wasn’t just useful for furnishing the Commission’s work but in helping MBIE formulate the Code of Conduct.

That’s being put together by MBIE now. We’ve had a series of meetings with them and the retailers to talk about how we take the UK and Australia Codes and New Zealand-ise them to make it appropriate for us. As I told members, I’ve been heartened by the quality and extent of the MBIE papers. They’ll be releasing a discussion document and I encourage everyone to make a submission so we can embed the Code and make sure we get something that’s really going to work.

One of our next priorities will be to re-establish good working relationships with the retailers, and this has started already. It needs to happen for the good of the sector and everyone in it.

NOTE: Agnes Baekelandt (Barker’s of Geraldine) and Julie North (Foodcom) have joined our Board, following the resignations of Christian Abboud, Nick Bangs, Gerry Lynch, and Peter Simmons during the year.

“HAVING A VERY STRONG LOCAL INDUSTRY HAS ACTUALLY HELPED US THROUGH THE WORST OF FOOD SHORTAGES BEING FELT IN MANY COUNTRIES.” 32

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[ trends ]

UNDER PRESSURE These days it seems like we’re surrounded with increasing amount of instinctive workarounds that disturbing news about the cost of living. Whether people adopt in order to cope with the rising cost of it is inflation creeping up (a 30-year high of 6.9%), living. For example, we are likely to see more: or mortgages doubling in cost and rents rising, • People not changing their shopping behaviour and or petrol prices hitting record heights, or crises in trying to ignore the added cost (this is also known supply-chain costs; the writing is on the wall for as the ostrich behavioural bias). household budgets. Making ends meet is going to • Diverting reductions in their household budgets get harder and harder. into other areas such as stopping their Netflix We’re not alone with this problem. Recent reports subscriptions. from the UK, Australia and the US show that the cost • Funding their weekly groceries out of debt in the of living is a rising tide for all. The perfect storm of form of credit cards and revolving credit accounts.

Covid, supply shortages and ballooning freight costs With the increasing cost of living a common news are coming home to roost at the checkout. item, we need to look to the grocery chains to see Local New Zealand shoppers have had their how they are responding. suspicions confirmed by the recent Commerce Woolworths recently announced a ‘winter prize Commission report on grocery. The duopoly of freeze’, which meant they were temporarily freezing Woolworths and Foodstuffs have been registering the price of hundreds of goods to help counter a profitability level over the last few years that is the rising cost of living. While it scored them a over double what the Commission estimates is lot of media coverage, investigation by The Spinoff normal (return on average capital employed with a into the actual products with frozen prices showed 5-year average of 12.7% for Woolworths, 12.8% for irregularities. It omitted basics like pasta, cooking oil, Foodstuffs SI and 13.1% for Foodstuff NI vs 5.5% vegetables and toilet paper. But on the list of 500+ estimate calculated by the Commerce Commission products were 37 dessert items, 29 different snacks as normal). and lollies and 19 essential wines!

So how do people cope in these conditions, Foodstuffs, on the other hand, introduced a 10% especially when there are no rises in income to offset cut in prices across its core grocery items (meat, the increased cost of living? The news tells us fairly vegetables, dairy products, sugar, flour, nappies and regularly that food banks and community support more) until August. networks are stretched.

As we head into winter the signs are that grocery “It was like we went from being the world’s food spending is going to be tough for many New Zealanders. basket to being a nation of foodbanks, where that is We in the FMCG world will be watching closely almost the preferred way of helping people out. And the level of discontent, and most importantly, what while the shift might seem sudden, the underlying shoppers will be doing to cope. currents have always been there,” said Economist Susan St John.

While the impacts of Covid related shutdowns are not to be ignored, looking at data over the last 10 years shows a fivefold increase in food parcels distributed by Auckland City Mission each year.

Whenever people are under serious threat they typically adopt one of psychological responses: Freeze, Fight, or Flight.

How does that play out with groceries?

The equivalent is likely to be a mix of: • Do without – and cut out the luxuries.

• Trade down – buy cheaper or smaller options.

• Look elsewhere – look for better value from another store, or charitable support in more desperate circumstances.

These options seem clear and rational.

However, we know that shoppers As we head into winter the signs are that grocery (i.e. humans) tend to act irrationally. spending is going to be tough for many New Zealanders.

Consequently, there is also likely to be an

Lew Bentley Head of Strategy Shopper Marketing Agency Energi lew.bentley@energi.co.nz

“MAKING ENDS MEET IS GOING TO GET HARDER AND HARDER.”

FMCG BUSINESS - JUNE 2022

33

[ events ]

ONZFPA MEDAL WINNERS ANNOUNCED

Chef Mat McLean was one of the judges.

In what has been hailed as ‘the most exciting year of the Awards to date’, 218 medal winners have been recognised at this year’s Outstanding NZ Food Producer Awards.

Winners span the length of Aotearoa from Northland to Southland and its breadth, from the West Coast over to the Chatham Islands. They represent a vast range of locally harvested, grown and made foods including mushrooms, meat, preserves, drinks, ice cream and sweets. The results follow two days of judging at Homeland in Auckland earlier in May. There were more than 300 entries this year and 71% received an accolade, with 78 Gold Medals, 86 Silver Medals and 56 Bronze Medals awarded.

Gold Medal winners included Nut Brothers Peanut Butter - Probiotic & Cranberry, Olliff Farm’s Premium Pasture Eggs, Jersey Girl Organics A2 Jersey Milk, Bostock Brothers Organic Free Range Chicken and Fix & Fogg’s Choc Berry Everything Butter, to name just a few. The full list of medal winners is available on www.outstandingfoodproducer.co.nz .

Reflecting on this year’s medal-winners, Head Judge Lauraine Jacobs said: “2022 has been the most exciting year for the Awards to date. Each year has seen not only growth in the number of entries, but the quality of the food products continues to rise and rise in every category.”

Of course this makes the judges’ task harder! But fortuitously it becomes a source of endless discovery and delight. As the expert judging team this year tasted their way through the submitted products, there were many squeals of surprise at the incredible flavours and the wide range of noted innovative and traditional entries.

“The awards judging process sets a high bar and there were many 34

FMCG BUSINESS - JUNE 2022

products, especially when fresh and straight from the farm or ocean, where the judges felt the growers and farmers had actually reached perfection.

Thus, we have a large number of Gold Medal winners, along with many more that were awarded Silver or Bronze for their high scores,” said Jacobs.

“Consumers who seek the very best can be absolutely reassured that any product displaying any of the Outstanding NZ Food Producer Awards medals are guaranteed to be high quality and more importantly, delicious.”

From its first year in 2017, one element which has set the Outstanding NZ Food Producer Awards apart is that each entry is assessed for sustainability, with these marks contributing to the final score along with points from tasting and the brand story.

Sustainability judge Fiona Stephenson noted, “Overall I’m impressed with the progression of sustainability over the three years I’ve been judging. It’s rare now to see an entry where sustainability is not taken seriously, it seems there is genuine commitment to sustainability across almost all the products entered – it’s fantastic to see.”

Outstanding NZ Food Producer Awards organisers Kathie Bartley and Nicola McConnell encouraged Kiwi food lovers to seek out winning produce, which they’ll recognise by distinctive Gold, Silver and Bronze Medals. “These medals are consumers’ guarantee that product is harvested, grown or made in Aotearoa and it’s been assessed by experts who recognise it as one of the best,” Bartley said.

Gold Medal winners are now in consideration for the Champions and Special Awards winners, which will be announced at the Champions Party on Tuesday 21 June in Auckland.

Are you looking to elevate your FMCG brand through impressive marketing?

DON’T MISS IT. Stay ahead of the game in NZ’s fast-moving grocery and retail sectors at the

MARKETING SUMMIT Ellerslie Racecourse, Auckland

Tickets on sale now THURSDAY 1 SEPTEMBER 2022 Ellerslie Events Centre Auckland www.fmcgsummit.co.nz

To book your table visit: grocerycharityball.org “Who in the world am I? Ah, that’s the great puzzle.”

Lewis Carroll PROUDLY SUPPORTING

OUT & ABOUT

rand GM Farming Gordon r Stuart Nash, LeaderB Richard Burke, Ministe ect in Tairāwhiti. proj e ous enh Gre (L to R) LeaderBrand CEO derBrand Whaitiri at the new Lea McPhail and Hon Meka Havana Coffee Works General Manager Lee Brown at the opening of Havana’s new roastery in Parnell, Auckland.

In May New World invited customers to donate foodbank friendly products or select one of their pre-filled $20 Family2Family bags, for the City Mission or local foodbank.

SNAP AND

WIN!

ell with head Nicola McConn ie Bartley and th Producers Ka od rs Fo to NZ rec anding rketing Di ) at the Outst nt Marvellous Ma fro in ng tti e Jacobs (si judge Laurain land.

Awards in Auck

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 gift hamper from pure delish including Creamy Chia Bircher Porridge; Primal Slab; Haffagani Bites; Original Chunky Nut Muesli; Local As: Macadamia & Manuka Honey Granola and Strawberry & Pistachio Breakfast Mix.

Just email your high res image with a caption to trubanowski@intermedianz.co.nz

FMCG BUSINESS - JUNE 2022

37

[ convenience & impulse retailing ]

NZACS

STATE OF THE INDUSTRY IN AUCKLAND The New Zealand Association of Convenience Stores (NZACS) and Nielsen IQ provide an update on the state of the NZ convenience market.

The NZACS Convenience Market Review Business Breakfast returned to the Remuera Golf Club in Auckland on 25th May. The event was a great opportunity for convenience operators and suppliers to network over breakfast and access some great insights around the New Zealand convenience market.

Mark Baker from NielsenIQ presented an analysis of the Convenience Channel in New Zealand, highlighting key category gainers and some of the most effective new product launches.

The NielsenIQ report revealed that the current top 10 NPD are mainly tobacco and vaping related products. Some other top performers in the convenience channel are: • Giftcards • Sports drinks • Carbonated beverages • RTD coffees The beverages category saw 10.6% growth and the largest segments are energy drinks and carbonated beverages. Health supplements is an

emerging category to keep an eye on. In the ice cream category, the take home segment is driving growth.

The NielsenIQ report also contained a summary of consumer behaviour and revealed the impact of high fuel prices.

The arrival of Costco in New Zealand with a discounted petrol offer and the ongoing work-from-home situation has affected the oil channel, said Baker. “Rising petrol prices are having an impact on shop sales and consumers are feeling the pinch. It is expected that 37% of the New Zealand workforce will be working from home in the near future.”

The NZACS Convenience Market Review Business Breakfast event was open to NZACS member companies only and their invited guests with 77 registrations for the day. C&I Media Commercial Director Safa De Valois and FMCG Business Editor Tamara Rubanowski attended the event, along with members from Bluebird, Goodman Fielder, BATNZ, Philip Morris, Imperial, Coca Cola, Frucor, 2 Degrees, Tip Top and Arepa, to name just a few.

The next NZACS Convenience Market Review Business Breakfast will be held in Christchurch on 16 June 2022.

PETROL AND CONVENIENCE NEWS PROUDLY BROUGHT TO YOU BY 38

FMCG BUSINESS - JUNE 2022

[ convenience & impulse retailing ]

Retail members of the NZACS include: • • • • • • • • • • •

BP and BP2Go Caltex/FIX Night n Day NPD On the Spot Z Energy Challenge GAS Gull Metromart Red Circle Wholesale

Christine de Lange from 2 Degrees with Mark Scott from Bluebird and Ash Dearmer BATNZ

Mark Baker Nielsen IQ

Rachel Williams from BATNZ and Connor Mercer from Arepa Drinks

Ash Dearmer BATNZ and Safa de Valois

FMCG BUSINESS - JUNE 2022

39

[ convenience & impulse retailing ]

REVAMPED Z ENERGY STORES ROLLING OUT ACROSS NEW ZEALAND Z Energy will revamp 50 stores across three years to create a better customer experience with a focus on space, choice, and speed.

Z Energy is performing a roll out of revamped sites, with improved layout and design, across 50 stores in the next three years.

Starting in Waiouru last year, Z is looking to create stores with easy, clear options for different consumer needs, hoping to avoid crowds and bottlenecked queues, and treat its customers to space, choice, and speed.

Andy Baird, General Manager of Retail at Z, said customer behaviour and habits have changed which means Z needed to adapt to.

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“WE’RE NOT THEIR DESTINATION. THEY ARE ON THE WAY TO SOMEWHERE. BUT WE WOULD LIKE TO BECOME THEIR DESTINATION BETWEEN DESTINATIONS.” – ANDY BAIRD, GENERAL MANAGER OF RETAIL, Z

“We’re not their destination.

They are on the way to somewhere.

But we would like to become their destination between destinations.”

Baird said they’re looking to sell and serve to customers within ten minutes and have also incorporated more counter and display space to support customers’ desires for a range of fresh foods and quality coffees.

“It comes down to doing things faster and easier but with better quality. We really do want Z to be for everyone.”

[ convenience & impulse retailing ] The new-look Z stores now feature screens for promotions as opposed to posters as they are easier to update, and with an eye to the future the new store layouts have the possibility to easily integrate selfcheckout systems.

The classic Z orange will continue in the new design but will be matched with tones of dark charcoal and off white and featuring signage in both Maori and English.

Wayne Kennerley, a Z retailer whose Waiuku store was one of the first to receive the fresh look, said staff and customer feedback has been overwhelmingly positive.

“Food, and most especially coffee, is not just an add on. In fact, it’s like ‘Come and buy your food here, get your coffee, and by the way, we sell fuel.”

“IT COMES DOWN TO DOING THINGS FASTER AND EASIER BUT WITH BETTER QUALITY. WE REALLY DO WANT Z TO BE FOR EVERYONE.” – ANDY BAIRD, GENERAL MANAGER OF RETAIL, Z There is also a change in uniform, featuring an orange or white top with black pants.

“The test of a good uniform is when a staff member ends their shift, do they immediately change their top, or are they happy to head to the supermarket with their work gear on? If so, that’s a big tick,” said Baird.

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41

Convenience at The Cloud

October sees the return of the Convenience & Impulse NZ Expo to Auckland, and it promises to be a significant event for the industry.

C&I NZ Expo 2022 will bring together convenience suppliers and retailers from all banners and brands for two days of education, essential networking and business building at The Cloud. Visitors will also taste, touch and see the very latest in NPD and merchandising services to help bring more customers through their doors.

Exhibitor testimonials from the recent Australian C&I Expo in Melbourne demonstrate how important it is for suppliers to get back in front of retailers and distributors to help kick-start connection and recovery from the dislocation of recent years*. *Visit candiexpo.com.au for the 2022 highlights reel

Association Partner

Silver Sponsors

Buyers are actively looking for new products, innovation, and inspiration. If you supply goods or services to independent grocery, convenience stores, service stations, dairies, corner stores or mini-marts, C&I NZ Expo is the one trade event you should be at in 2022 if you want your products in stores.

Attendance for trade visitors is FREE so if you own, or work in, petrol or stand-alone convenience, supermarket, grocery, hospitality, or convenience & impulse retail outlets, register now at candiexpo.co.nz

For an Exhibitor Prospectus or to discuss display stand options, please contact: Safa de Valois | Group Publisher & Commercial Director, C&I Media Pty Ltd. safa@c-store.com.au | +61 405 517 115 | www.candiexpo.co.nz