FMCG Business March 2022 by The Intermedia Group

fmcgbusiness.co.nz

L E A D I N G

I N D U S T R Y

N E W S

MARCH 2022 – Volume 9 – No 2

PLUS! CHOCOLATE & CONFECTIONERY n BREAKFAST FOODS n RECRUITMENT n WHAT’S HOT n NEW ZEALAND’S LARGEST FMCG AUDIENCE

contents MARCH 2022

27 22

UP FRONT

GOOD BUSINESS

EDITOR’S NOTE

INDUSTRY NEWS

30 INDUSTRY NEWS AND INSIGHTS

SPECIAL FEATURES 14 RISE & SHINE What’s new and driving sales in Breakfast Foods right now 18 NATURAL & NUTRITIOUS Demand for eggs keeps on growing 22 SWEET TREATS Chocolate & Confectionery category insights 28 SAUCES & DRESSINGS

36 FMCG BUSINESS PRODUCT OF THE YEAR The first finalist for 2022 is revealed 37 PROFILE Deep South Onfire! 38 MARKETING Lew Bentley’s notes from the retail front line 40 FGC How efficient is the RAT distribution system? 41 LEGAL ADVICE

REGULARS 12 BEST IN SEASON Fresh produce update

16 REBEL BAKEHOUSE BAGELS PACK MORE INTO THE BREAD AISLE 21 WHAT’S HOT New products in store

32 RECRUITMENT

25 COVER STORY The home of New Zealand lollies shines a light on its iconic RJ’s Licorice Allsort 26 PROFILE Frucor Suntory partners with Pita Pit NZ

43 OUT & ABOUT Our people at work and events around the country

CONVENIENCE & IMPULSE RETAILING 44 EDITOR’S NOTE 45 GULL Ampol has confirmed a “shortlisted set of bidders” for Gull 46 STORE REVIEW Z service stations continue to evolve 47 SUSTAINABILITY Working towards a greener future

FMCG BUSINESS - MARCH 2022

[ editorial ]

WHAT’S NEW IN 2022? What’s trending in Breakfast Foods, Eggs, Chocolate and Confectionery? What’s new and driving sales in our supermarkets right now? What’s fresh in season and what’s happening in the convenience sector? You’ll find all the answers and much more in this issue of FMCG Business, designed to help your team with the latest industry news, product launches, IRI data and category updates. We talk to FMCG recruitment experts about finding and retaining talent, discover what’s different in 2022, and how to spot red flags if you’re looking for a new job. We bring you insights from FGC Chief Executive Katherine Rich and legal advice from the team at Steindle Williams if you are faced with unfair terms in trade contracts, plus notes from the retail front line courtesy of marketing guru Lew Bentley. March is going to be another interesting month and we’ll keep a close eye on supply chain issues, the impact of Omicron on workplaces and of course the long awaited ComCom report! Please join our daily conversations on Facebook, Instagram, Twitter or LinkedIn, or email us to share your news – we’d love to hear from you. You can also visit www.fmcgbusiness.co.nz to subscribe to our weekly newsletter and the monthly magazine. If you receive your magazine in the mail, you may be interested to know that our wrappers are made from BOPP, which can be recycled at soft plastic bins around New Zealand. We hope you enjoy this issue.

PUBLISHED BY C&I Media (NZ) Ltd PO Box 109 342 Newmarket, Auckland 1149 MANAGING DIRECTOR Simon Grover COMMERCIAL DIRECTOR Safa de Valois safa@c-store.com.au EDITORIAL DIRECTOR James Wells james@intermedia.com.au HEAD OF CONTENT Tamara Rubanowski trubanowski@intermedianz.co.nz ph: 027 278 4761 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

Take care and stay safe,

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

C&I Media takes its Corporate and Social Responsibilities seriously and is committed to reducing its impact on the environment. We continuously strive to improve our environmental performance and to initiate additional CSR based projects and activities. As part of our company policy we ensure that the products and services used in the manufacture of this magazine are sourced from environmentally responsible suppliers. This magazine is printed on Impress stock from Spicers Paper using FSC-MIX source pulp from responsible sources and other controlled sources. We print using BIO-inks that contain base materials from renewable resources including wood resin (rosin, colophony), vegetable oils, linseed oil and soy bean oil. This magazine is printed by ICG, an ToitŪ enviromark gold certified printer.

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

ON THE COVER The home of New Zealand lollies shines a light on its iconic RJ’s Licorice Allsort. Read the full story on pg 25.

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

FMCG BUSINESS - MARCH 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

s e t i b o t a t o p y p s Cri NOW AVAILABLE IN SEA SALT FLAVOUR

ORDER YOURS TODAY FROM BLUEBIRD FOODS! If you’re a new customer, you can call us on 0800 652 583

[ news ]

FOODSTUFFS STORES SELL RAPID TESTS, READY FOR PHASE 3 The Government has approved the retail sale of Rapid and we’ve been cross training and employing more people so we Antigen Tests (RATs) through Foodstuffs stores, following can keep the stock flowing to our stores and onto shelves.” the shift to Phase 3 of the RED setting of the “We’re keeping all the tools we have in place to help COVID-19 Protection Framework. keep people safe, including increased hygiene and “We’re moving quickly to make these available for sanitation measures, physical distancing in store, mask customers as our priority continues to be use for teams and customers and scanning the QR app.” keeping our customers and team members Foodstuffs says: “As more team members are safe and working hard to deliver essential required to isolate you may start to see some supplies to New Zealanders,” says the changes in-store, this is to make sure we Foodstuffs team. can keep our teams and customers safe and The Government has approved the retail sale of Rapid Antigen Tests will be sold at cost price the stock flowing onto shelf, so what you need is Rapid Antigen Tests (RATs) through Foodstuffs stores at PAK’nSAVE, New World and Four Square there when you do your shopping. stores and could be available in stores from early “During the Omicron peak, we may reduce the March. Foodstuffs will sell the Orient Gene Rapid COVID-19 Self Test opening times of individual stores, please check our websites and your 5-pack ($32.99 per pack) and the Ecotest COVID-19 Rapid Antigen local store’s Facebook page for the latest up-to-date information. Nasal Pen 2-pack ($19.99 per pack). “We may also limit the number of products customers can buy in one “Rapid Antigen Testing is also proving a valuable surveillance tool shop, so everyone has a fair opportunity to get what they need. This will within our co-operatives. Our teams in supply chain and our distribution vary from store to store. centres are taking regular Rapid Antigen Tests, which is reducing the “Our Kiwi suppliers and manufacturers are also doing their best to risk of transmission at our sites and giving our people extra reassurance keep the stock flowing, if your favourite item isn’t available when you we’re doing all we can to keep them safe at work,” says Foodstuffs. shop, please take the opportunity to try something different.” Foodstuffs is 100% locally owned and operated, so store owners Phase 3 know their communities and their customers and go the extra mile to The Foodstuffs team explains: “Operating in Phase 3 means we’re meet their needs. Over the past two years they have continued to keep maintaining our support towards slowing the spread of Omicron and all of their stores open, and they are proud of that. protecting our vulnerable communities. As has been the case throughout “We’re a small country and we’ve done well through this pandemic by the pandemic, we’re prepared and as ready as we can be for what the working together and respecting each other, and we’ll need to continue Omicron peak brings. We have plenty of stock in our distribution centres to do that,” says the Foodstuffs team.

FOR MORE INDUSTRY NEWS FOLLOW US ON 6

FMCG BUSINESS - MARCH 2022

CHECK OUT WWW.FMCGBUSINESS.CO.NZ

ORDER YOURS TODAY FROM BLUEBIRD FOODS. IF YOU’RE A NEW CUSTOMER, YOU CAN CALL US ON 0800 652 583

[ news ]

AUCKLAND’S GREENEST SUPERMARKET OPENS AT WAIATA SHORES One of Aotearoa’s most sustainable supermarkets, the brand-new, soon-to-be Green Star accredited, Countdown Waiata Shores is now open for business. The 4,200sqm store is a more than $30 million investment by Countdown in a rapidly growing area of South Auckland. Filled with environmentally-conscious and future-focussed features, it is also set to be Auckland’s first ever Green Star accredited supermarket. The new Countdown Waiata Shores has created around 100 new jobs for locals and also includes a Drive-Up option for online order pick up, an in-store Countdown Pharmacy, an extensive range of fresh produce, and an in-store bakery, deli and Cellar. Countdown’s Director of Property, Matt Grainger, says he’s incredibly proud to show local customers what the Countdown stores of the future will look like. “We’re working to achieve Green Star accreditation for more and more of our stores because it ensures we’re developing stores that are not only great places for our team to work and our communities to shop, but are also great for the planet. “We’re really proud of what we’ve been able to do at the Waiata Shores store and it’s fantastic to really see sustainability in action with digital shelf labels to reduce our paper use, doors on all the fridges to reduce our energy use, solar panels on the roof to generate power, cycle paths that connect to the rest of the Waiata Shores development and more,” says Grainger. “Building such a sustainable supermarket and meeting the Green Star standards isn’t as simple or as inexpensive as a regular store, but it’s well worth it to know we’re leaving a much lighter footprint for future generations and creating a clear path for achieving our 2025 Sustainability Commitments,” says Grainger. He says that working to meet the Green Star accreditation standard at Waiata Shores wasn’t just about the features customers can see in the store - the whole design and construction process was equally important. “There’s a lot that’s happened behind the scenes to make the development as sustainable as possible. We’ve made a deliberate effort to reduce the amount of waste going to landfill - in fact, we reduced construction waste to landfill by 70%.”

FMCG BUSINESS - MARCH 2022

Countdown’s Director of Property Matthew Grainger

Some of the emissions, water, paper and energy saving features in the new store include solar panels to generate 10-15% of the store’s total energy; transcritical refrigeration systems that use natural refrigerant gases; LED lighting which is 35% more efficient than traditional lighting; water-saving taps to reduce water use and an Energy Management System, which provides regular updates on store energy and water use. Doors on fridges and freezers reduce energy use, digital shelf labels reduce paper use and there are also EV chargers for customer cars and more bike parks linked with local cycleways to help encourage biking and reduce short car trips to the supermarket. Waiata Shores is Countdown’s second ever Green Star store. Countdown opened New Zealand’s first Green Star supermarket in Richmond in June 2021. Countdown is working to achieve a 4 Green Star design and as-built rating for all of its new property developments, and a 5 Green Star minimum standard by 2025.

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TO JOIN OUR REBELLIOUS BAGEL ADVENTURE CALL ALLIANCE ON 09 280 2926

[ news ]

NZ MOVES TO PHASE 3 New Zealand moved to phase 3 of the contacts of people with Covid-19 need Omicron response on 24th February after to isolate. Close Contacts no longer a steep rise in new Covid case numbers need to isolate, unless they and hospitalisations. have symptoms. The Government’s release stated: As • The Close Contact Exemption Scheme daily case numbers and hospitalisations remains available for critical workers rise, it’s time to move on to the next that would otherwise be required phase of our Omicron response. We will to isolate due to being a household be changing our approach to testing and contact of someone with Covid. isolation, helping to slow the spread while New Zealand remains at Red, and also protecting our most vulnerable, businesses can operate as normal at Red ensuring critical services and supply with some additional measures in place. chains keep running, and easing pressure As always, it’s important everyone The Close Contact Exemption Scheme on our health system. keeps up healthy habits like physically remains available for critical workers. The key changes include: distancing, mask wearing and hand • Rapid antigen tests (RATs) will be used hygiene during this period. more, rather than PCR tests, to enable quick testing of those at higher Once we pass the peak of Omicron, we can safely reduce some risk of testing positive. restrictions. This will likely include stepping down through the traffic • Most people will need to self-manage Covid-19 at home – this means lights, easing gathering limits and reconsidering the current use of those with symptoms or who test positive will need to self-identify vaccine mandates and passes where it makes sense to do so. and volunteer their information for contact tracing. Find out more about the next phase of our Omicron response: • Only positive cases, people with Covid-19 symptoms, and household https://covid19.govt.nz/phase3

[ sponsored content ]

INSPIRING KIWIS TO MAKE EVERY MEAL A PARTY WITH NEW TOSTITOS ROUNDS! Tostitos Rounds aren’t just tortilla chips, they’re also the perfect partner for an authentic Mexican meal experience. The round scoopable shape and sturdy cut are great with all kinds of Mexican dishes, and the range of subtle flavours will get your taste buds up and dancing. They’re made locally with New Zealand grown corn and there are three different flavours to choose from: Lightly Salted, Mild Mexican Salsa and Chipotle and Sour Cream. The range is available in a large 290g pack size suitable for making meals and the bag is recyclable through the New Zealand Soft Plastics Recycling scheme. Anna Dempsey, Senior Brand Manager of Tostitos says: “Meal occasions, such as nachos, are the #1 consumption occasion for corn chips in New Zealand (Source: Colmar Brunton Brand Health Study, November 2020). In addition to this, a recent study with corn chips consumers highlighted that most corn chips in the local market do not 10

FMCG BUSINESS - MARCH 2022

meet a consumer need for an authentic Mexican meal solution – most corn chips are too brittle and are not thick enough to hold toppings. Also, we found there was an opportunity for a corn chip brand to bring a fun and authentic Mexican experience to the category.” So, whether you’re catching up with friends or family, or planning a full-on fiesta, Tostitos Rounds make every meal a party. Each pack provides meal inspiration with images of mouth-watering Mexican meals on the front of pack and full recipes on the back of pack for: • Smoky Pulled Pork Nachos & Coleslaw • Chicken & Black Bean Chilli with Charred Corn & Green Salsa • Frijoles & Pico deGallo Order yours today from Bluebird Foods. If you are a new customer, you can call us on 0800 652 583.

[ sponsored content ]

CHEETOS MULTIPACKS HAVE ARRIVED IN NZ - CONVENIENT NEW PACKAGING AND FUN FORMATS! Cheetos are introducing two NEW multipacks 6s to the New Zealand market, including the delicious Cheetos Crunchy Cheese and Cheetos Cheese and Bacon Balls flavours. Since its launch in New Zealand, Cheetos has fast become the #2 extruded brand*. This expansion of the much-loved range looks to capitalise on the strong momentum gained and offer consumers a larger variety of products they love. Cheetos multipacks are fun for everyone and ideal for consumers seeking tasty treats to share in family time together. With the new slimline 6-pack design and eye-catching packaging, consumers can enjoy the Cheetos range on-the-go in conveniently portioned packs. Cheetos – dangerously cheesy ™. Made with real cheese! *Data source: NZ Grocery Total Alternative Snacking (MAT To 30/01/22 Quarter To 30/01/22) Dollars 1. Twisties 3.8M 2. Cheetos 3.3M

Order yours today from Bluebird Foods. If you are a new customer, you can call us on 0800 652 583.

“CHEETOS ARE INTRODUCING TWO NEW MULTIPACKS” [ sponsored content ]

POP POP PERFECTION! ALL NEW POPPABLES SEA SALT ADDS TO THE DELICIOUS, LIGHT AND CRISPY POPPABLES RANGE. Poppables Sea Salt is the newest addition to the delicious Bluebird Poppables range, with less than 105 calories per serve. With no artificial colours or flavours, and no added MSG, Poppables Sea Salt will cater to consumers moving towards lighter snacking alternatives. The Alternative Snacking segment continues to experience growth within the Salty Snacks category, growing at 18% vs YA#. It is now worth $44.7 M, demonstrating consumers’ strong desire for alternative snacking options (Source: IRI scan data, Grocery, MAT to 30 January 2022). These delicious crispy potato bites will be the ideal snacking solution for consumers looking for snacking alternatives that don’t compromise on taste. Key claims front of pack: • Less than 105 calories per serve • No artificial colours, no artificial flavours, no added preservatives • No added MSG # NZ Grocery Total Alternative Snacking

(MAT To 30/01/22

Quarter To 30/01/22)

Dollars

$44,977,240.00

$11,070,397.00

“POPPABLES SEA SALT WILL CATER TO CONSUMERS MOVING TOWARDS LIGHTER SNACKING ALTERNATIVES”

Dollars Growth % YA 18.0 4.1

Order yours today from Bluebird Foods. If you are a new customer, you can call us on 0800 652 583. FMCG BUSINESS - MARCH 2022

[ fresh produce ]

BEST IN SEASON As we ease into Autumn, the cooler weather brings on the start of New Zealand’s pipfruit season as well as the start of the wintery brassica crops. A late flush of blueberries and strawberries brings colour to the grocery aisles as consumers enjoy the last taste of our Indian summer before we settle in for the change of seasons.

Apples and Pears Crunchy and juicy, New Zealand has a proud history of growing some of the world’s tastiest pipfruit and this year’s crop of apples and pears are no exception. Arriving in good volume in stores this month and continuing supply of different varieties right through until October, apples and pears form the mainstay of fruit displays over the winter. Gala, Braeburn and Jazz are among the early popular apple varieties while Royal Gala, Pacific Rose and Granny Smith feature later in the season alongside options such as Lemonade (which is a beautiful yellow apple) and Smitten, a unique mix of Gala, Braeburn, Falstaff and Fiesta. New Zealand pear varieties include Packham, Beurré Bosc, Winter Nelis, Winter Cole, Doyenne du Comice and Williams bon Chrétien – also known as the Bartlett pear. The main supply of Nashi pears is only available for a short window of 6-8 weeks so be sure to utilise them where possible from now. What to look for: Apples should be firm to touch. Avoid apples with any bruising or discoloration. Also pay attention to the skin – dullness may indicate they are past their prime. Pears ripen from the inside out so pears should also be firm to touch, with no dark or soft spots. Nashi pears are harvested when ripe, so look for firm fruit that feels heavy for their size and are light yellow green in colour. Storage/handling: Where possible, store apples in the refrigerator and handle with care to avoid bruising. Pears have a very delicate skin so be careful when handling to avoid bruising. If pears are not ripe, ripen at room temperature and then refrigerate. Nashi pears don’t store well so be sure to merchandise properly and keep them rotated. Nutrition: Apples and pears are a source of vitamin C, which supports healthy skin, and a source of dietary fibre, which supports digestive health.

What to look for: Broccoli should feel heavy for their size with tight green florets and firm stalks. The cut ends of the stalks should be fresh and moist looking. Storage/handling: Broccoli and will last out of refrigeration in the cooler months provided they are kept hydrated. Nutrition: Broccoli are a good source of vitamin C, which supports healthy bones, teeth, gums and skin. They are also a source of dietary fibre which aids healthy digestion.

Limes New Zealand limes arrive in stores from March, much to the relief of shoppers who have been paying premium prices for imported fruit while they aren’t in season here. The main varieties grown here are Mexican (Key) limes and Persian or Tahitian (Bearrs) limes. New Zealand limes will be available from now until September. What to look for: Limes are generally harvested before they ripen fully. Mexican, Persian and Tahitian limes are tastier when they are yellow green rather than dark green. Choose heavy limes as they will be juicier and have more flavour. Storage/handling: Limes can be kept at room temperature where they will last for 1-2 weeks or refrigerated where they will last around a month. Nutrition: Limes are a good source of vitamin C, which helps unlock mental vitality for a healthy brain and nervous system.

“NEW ZEALAND LIMES WILL BE AVAILABLE FROM NOW UNTIL SEPTEMBER”

Broccoli Broccoli is the star of the brassica group of vegetables, members of the mustard family, which includes plants whose leaves, flowers, stems, and roots are usually cooked and eaten. A mainstay of winter vegetable displays, broccoli is available year round but in good supply from autumn through until late spring. 12

FMCG BUSINESS - MARCH 2022

Join us on

www.unitedfresh.co.nz

S K E T T L E WAV E

T L A S A E S N SOUTHER

Raymond Bowan, potato farmer and founder of Heartland Chips, is not a man to settle for the status quo. In his view there is nothing in this great nation that can’t be improved upon with some old fashioned hard work and ingenuity.

Well to be honest if you know Raymond it didn’t quite play out exactly like that, but you get the gist, because the result is a kettled cooked wave cut chip that could only be described as “EXTREME CRUNCH!”.

So when one of his old mates said he couldn’t possibly make his beloved Heartland Chips any CRUNCHIER, Raymond simply replied with a cheeky grin “well, let me think about that”.

NZ’s only 100% Kiwi owned potato chip company. Only Heartland Potato Chips, made up of a family of potato and chip fanatics, could produce a premium chip of this calibre.

You see, it doesn’t take much to stir the farmer into action. The first thing he did was convene a meeting of the family at Fallgate Farm, the home of Heartland potatoes. With his wife Adrienne and their children James, Charlotte and Kate waiting in anticipation, Raymond selected one of his fine potatoes and in his low pitched voice said, “we are going to turn this perfect potato into the freshest, tastiest, but most importantly, crunchiest chips known to mankind!”

Contact your Twin Agencies Ltd. Account Manager on 0800 258 946 or visit www.heartlandchips.co.nz

RISE & SHINE What’s new and driving sales in Breakfast Foods right now?

Shoppers are increasingly reaching for new, healthy breakfast options. Look out for innovation in convenience and smoothies, as well as low sugar, allergy-friendly, keto and ‘better-for-you’ products this year.

pure delish Key to pure delish’s success in premium breakfast for over 20 years, has been their ability to read and tap into what consumers want and what delights them, with products that not only meet those specific needs, but also taste delicious. Their portfolio delivers to what consumers desire the most: lower sugars, grain free, nutrient dense and clean ingredient labels.

FMCG BUSINESS - MARCH 2022

2021 was no different, with the launch of their exciting new range of Local As granola’s, made from 100% NZ grown ingredients – supporting local growers and suppliers in, what has been, for many, some quite challenging market conditions. With a portion of profits going to support the amazing conservation work of the Forest Life Force Trust, protecting some of NZ’s most precious species, to the collaboration with Taranaki based up-and-coming artist Catherine Marion on the eyecatching packaging. Filling the void for what consumers want, has always been the forte of pure delish and why they have remained market leader for so long. “Authenticity, integrity, traceability, sustainability - these are just some of the things New Zealanders are becoming more passionate about when choosing what products to spend their precious, hard-earned money on. Having a great product is no longer enough, consumers increasingly want to feel good about the products they choose, they want to feel like they are contributing in some way to the greater good,” commented Jodi Reddell, General Manager. Ahead in 2022, pure delish have some new and exciting breakfast products launching along with a fresh new packaging look that will start rolling out in the coming months. These breakfasts

[ category insights ] are products designed with a consumers’ health and wellbeing in mind. The products have natural clean ingredients with nothing artificial, each are handcrafted by a passionate team of local bakers and taste fantastic. For more information please contact pure delish at info@puredelish.co.nz.

Harraways’ exciting new additions Harraways is a local, privately owned oat brand, milled in the original Dunedin mill. The mill started operation in 1867 and over this 155-year journey, Harraways has supported local Otago and Southland farmers who grow the finest quality local oats found in most* of its branded bags or boxes (*excl. Organic). Found in all good Kiwi supermarkets and health food stores, Harraways commands a marketleading 45.8% dollar share of the $25.1 million traditional bagged, oats business in New Zealand. The company also mills private label for local customers, alongside a flourishing industrial/ B2B business whereby Harraways grains become core ingredients in other famous local food and beverage brands. The company also exports its fine products into Pacific and other South-east Asian markets.

Harraways has market momentum with its value-added ranges - including single sachet and fortified, bagged oat mixes. For example, the total oats market has grown just 0.6% in dollars (total grocery TY vs. LY) compared to Harraways’ added value segment, growing 35.8% in dollars (source: IRI, MAT to 23/1/22). “Our plan to tie product and range development plans to relevant, current customer drivers is working,” says Peter Cox – Harraways Marketing & Product Development Manager. “Key drivers of relevance right now are – make it healthier, make it good value, make it local, feed my interest in new tastes and ensure each product respects the planet! These ranges do exactly those things,” says Cox. 2022 sees three exciting new additions: Less Sugar Strawberry Cream 7-pack Oat Sachets, Less Sugar Raspberry Coconut Oats 850g Bag, Immunity Boost Blackcurrant & Spiced Apple Oats 850g Bag. All are now ranged and available at all good supermarkets throughout New Zealand from April 1st. For more information contact info@harraways.co.nz , ph (03) 488 3073, or www.harraways.co.nz .

STOCK UP ON

DELICIOUS TASTE NOW WITH EVEN BETTER HEALTH BENEFITS!

BeMighty Granola Launched in October 2020, BeMighty Granola – breakfast for the mighty – continues to be another great Hubbards success story! Impactful packaging, great flavours and an affordable price point, have all contributed to making this granola a star in its category says Amanda Howe, Marketing Manager for Hubbards.

WHY IT MAKES SENSE? HARRAWAYS DRIVING A VALUE ADDED HOT BREAKFAST SEGMENT THAT’S RIPE FOR MORE CHOICE! PLAYS TO KEY CUSTOMER TRENDS Less sugar. Strong market trend in food & beverage plus medical direction to consume less. Immunity boost is a real functional health area in focus & driven strongly by the Covid pandemic.

DOLLARS GROWTH % PP NZ GROCERY TOTAL OATS ALL PACK FORMATS MAT TO 23/01/22

0.6

TOTAL NON TOTAL SACHET SACHET -2.1

6.5

Sum Of Harraways Value Added Paper Bag Range & Value Added 7-Pack Sachet Range 35.8

HARRAWAYS & SONS LTD. 165 MAIN SOUTH RD GREEN ISLAND, DUNEDIN 9018 PO BOX 13040, GREEN ISLAND DUNEDIN 9052

P +64 3 488 3073 E info@harraways.co.nz www.h arraways.co.nz HARRAWAYS.CO.NZ

[ category insights ] “Consumers are seeking tasty and affordable breakfast options, but don’t want to compromise on health benefits. And recently, our packaging was recognised by World Brand Design Agency and awarded Gold. "The BeMighty range all deliver more than 23% of your daily fibre intake and less than 3.8g of sugar per serve." “Granola continues to drive Total Muesli across Total Supermarkets. The continued growth in BREAKFAST CEREALS Dollars Total Breakfast Cereals

Dollars Growth % YA

$326,440,599

1.6

Family/Staples

$98,379,087

-3.3

Muesli, Clusters And Granola

$76,680,840

2.9

Convenience

$43,333,699

17.5

Hot

$42,546,233

1.4

Flakes & Fibre

$38,154,981

-4.7

Kids

$27,125,855

5.3

$219,905

-2.7

Semolina

Source : IRI Market Edge Grocery MAT to 30/01/22 (Selected segments)

Granola is driven by Hubbards Granola and in particular BeMighty, with Total Hubbards Granola dollar sales +51.0% vs Total Granola +10.6% in latest MAT 16/01/22,” explains Howe. Charged with developing two more new BeMighty flavours was Aaron Garza, Product Development Technologist. He says: “Coming up with flavours is always the fun part of every project, that’s the creative side I enjoy the most from the whole Product Development Process. I always try to come up with different flavours to please different taste buds, so I have developed one with fruits and one without fruit for non-fruit lovers like me. Blueberry & Seeds and Salted Maple & Cashew are sure to make their mark.” “The phenomenal and continued growth in sales and distribution since launch has enabled the two new skus to be accepted as incremental to the range – we now have five exciting, tasty BeMighty granolas to offer shoppers. We are incredibly proud of our great innovation team who continue to develop fabulous tasting products. More to come in 2022!” For more information contact sales@hubbards.co.nz , ph 0800 462 735 or www.hubbards.co.nz .

[ sponsored content ]

REBEL BAKEHOUSE BAGELS PACK MORE IN TO THE BREAD AISLE Rebel Bakehouse’s master bakers have again risen to the challenge in their quest to shake up the bread aisle, this time breaking bagel boundaries by creating the lowestcarb, lowest-calorie offering on the market. Rebel’s new range features the Low-Carb Max bagel, which is 47% lower in carbs than any other bagel on the NZ market. Rebellious baking for better living, the brandnew bagel range includes Three Cheese, Original and Sesame Seed as well as the only wheat-based Sourdough bagel. Destined to take people on an innovative taste adventure, Rebel’s bagels are also presliced for life-on the-go, great for brekkie, a snack, lunch or dinner. With tasty ingredients baked right through the bagel (instead of just on top) they’re made using NZ wheat and are packed full of innovative ingredients and total goodness. Rebel Bakehouse Sales Manager Kerrie Brown says 2022 sees a continued increase in people looking for food that helps people eat well while on the go, with ingredients focused on wellbeing. 16

FMCG BUSINESS - MARCH 2022

“Rebel’s bagels all carry a minimum 4-Star Health Rating,” she says. “We don’t just bake, we create. Our master bakers refuse to compromise on taste, convenience or nutrition and are constantly searching for new and exciting ways to make products to help NZ families eat and live well.” Rebel Bakehouse’s bagels are bound to attract attention and will be available this month nationwide giving Kiwis the choice of better for you products at all good supermarkets. For sales queries please contact your Alliance Sales Representative 09 280 2926.

[ category insights ] Blue Frog Blue Frog Founder Scott Baragwanath told FMCG Business: “Here at Blue Frog, we’re nuts about breakfast, health and most of all, taste – so it’s no wonder we grew more than 50% last year! Even though we have now established ourselves here in NZ as a firm crowd favourite, we aren’t slowing down. “With the demand for keto diets only continuing to grow (Keto F&B sales are up 79% YOY and 85% of Kiwis are following some sort of diet), we thought it was about time we shared our long-awaited creation - something to fulfil those keto dreams. “Introducing our new Keto Almond, Peanut and Raspberry offering – boasting 88% nuts and seeds, just 0.9gm sugar per serve (the lowest Keto cereal in Australasia), 4gms of carbohydrate per serve AND it’s grain free and gluten free. “This is undoubtedly putting our best foot forward, basing the recipe on our award-winning Macadamia recipe that’s the number one selling super premium

cereal after just one year*. We’ve roasted our peanuts not once, but twice, and added crunchy almonds and all manner of crispy seeds. With a sprinkling of the best freeze-dried, New Zealand grown raspberries from our friends at Little Beauties in Nelson and a generous splash of pure Heilala Vanilla, you’ll be hard pressed not to fall in love. “For breakfast or as a snack on its own, it’s the perfect accompaniment to anyone’s day. So get this one on your sites and shelves today and see for yourself the magic we can bring,” says Baragwanath. *ROS in top 20 FS stores.

For any enquiries/samples or to place an order, please email sales@bluefrogbreakfast.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

WORTH WAKING UP FOR

new

crafted in nz

AND

88%

NUTS &SEEDS

1 g sugar serve per

GLUTEN FREE

KETO

ALMOND, PE ANUT AND R A S P B E R R Y

350 g

CARBS

NATURAL & NUTRITIOUS Demand for eggs keeps on growing. Kiwi shoppers love convenient, natural, local ingredients. The recent trend towards reducing meat consumption also means that consumers are looking for alternative, low-cost protein sources. Eggs are a highly nutritious food that can make an important contribution to a healthy, well-balanced diet. They are a natural source of at least 11 different vitamins and minerals as well as high quality protein, omega-3 fats and antioxidants. The New Zealand Nutrition Foundation suggests eating up to six eggs a week as part of a healthy, balanced diet. Eggs need to be stored in a cool place out of direct sunlight (and at home ideally in the fridge). Temperature, humidity and careful handling all contribute to freshness. Most commercially produced eggs in New Zealand reach supermarkets within a few days of being laid. The best before date on egg cartons tells you how long the eggs inside it stay ‘fresh’ if they are kept refrigerated after purchase. During this time there is little change in the nutritional value of the egg, but the appearance and qualities of the egg may change as the egg ages. New Zealand has around 180 egg farms and one of the most ideal egg farming environments, being free from many of the pests and disease strains that other countries experience. We lead the world in many areas of farm practice and animal welfare. Kiwis are now eating around 250 eggs per person per year, more than double the 100 we were eating in the early 20th century. As the demand for eggs has grown, our farming methods have had to evolve and expand in order to meet the nation’s need for around one billion eggs per year.

Independent Eggs Co-operative Ltd “Produced and supplied by our cooperative of 100% NZ-owned, regionally-based, family farms, the New Day and Morning Harvest 18

FMCG BUSINESS - MARCH 2022

brands are packed with locally-produced, fresh, quality eggs and delivered with reliability and care via your local family farm,” says General Manager Susan Bamfield. As members of Independent Egg Producers Co-operative Ltd (IEP), many of the farms have been in the same family for generations. As a result, an ongoing passion for time-honoured tradition coupled with modern farming technology, ensure eggs of not only excellent quality, but also representing ‘local’, ‘community’ and ‘provenance’ are packed into every single carton and tray. Not only that, each local farmer has also invested in the ‘Trace My Egg’ stamping technology, ensuring that every New Day free-range and Morning Harvest barn egg is stamped in accordance with the ‘Trace My Egg’ compliance programme (www. tracemyegg.co.nz). This means that both stockists and consumers can purchase these brands knowing the exact source farm for each individual egg and, more importantly, with the absolute confidence and security of knowing that these eggs are genuinely and authentically ‘true to label’, explains Bamfield. To place your orders or for further information please contact 0800 787 327 or email info@independenteggs.co.nz

[ category insights ] ZEAGOLD NUTRITION Farmer Brown

EGGS Dollars

Dollars Growth % YA

“As Kiwis favourite, everyday egg brand in supermarkets* Total Eggs $281,959,674 -0.2 Farmer Brown is a well-known, trusted brand with eggs for Free Range $118,281,656 3.6 every occasion, from a high protein, power breakfast to that Intensively Caged $101,000,880 -14.5 special occasion meal,” says Marketing Barn $36,924,420 15.6 Manager Julie Williams. “Available Enriched Colony $17,978,284 68.6 nationwide, our research Organic $5,578,571 -3.3 shows that Farmer Brown is the Specialty/Other $2,195,864 24.6 brand shoppers Source : IRI Market Edge Grocery MAT to 30/01/22 (Selected segments) use as a signpost to navigate the egg aisle. Farmer cues that have made the brand successful and reflect the wholesome, Brown’s distinct colour comforting, and natural goodness of the egg category. codes and prominent egg “To assist with driving total Cage-Free category growth and support sizing assists with guiding the new-look packaging, we have created high-impact offsite displays to shoppers through their disrupt the shopper journey in-store. To prompt purchase and increase purchase decision-making basket value per shopping visit, the displays feature a range of appetising process. tear-off recipes to inspire shoppers to include eggs more frequently in “In the last year, we’ve their weekly meal repertoire. evolved our packaging to Williams says: “Results to date suggest that our new-look packaging create a unified approach and instore activation are resonating with Kiwi household shoppers with and cohesion across our Farmer Brown Barn Cage-Free representing 27.1% (+18.1%) volume Barn and Free Range product ranges. and 23.5% (+15.9%) value share vs quarter YA*.” We have retained all the important traditional *IRI MarketEdge QTR to 13/02/2022

[ category insights ]

Woodland “Woodland Free-Range eggs continue to hold the number one ranking position within the Free-Range segment in both volume (22.6%) and value (21.4%) share with +23%/$388K value growth in the latest 4 weeks¹,” says Marketing Manager Julie Williams. “To continue to retain this position, we have evolved and refreshed our packaging to generate excitement, interest in-store and build brand love with new and existing, loyal shoppers who are prepared to pay more for premium free-range eggs.

“Our new packaging features an artisan, ‘woodcut’ illustrated design approach to amplify the relevant animal welfare and environment cues that Free-Range shoppers connect with – the Woodland name, hens, and tree. “The refreshed packaging is supported with Woodland premium, offsite displays in supermarkets to prompt purchase outside the egg aisle and assist with driving Free-Range category growth. “Look out for our eye-catching Easter-themed packaging hitting the stores soon also,” says Williams. ¹IRI MarketEdge 4wks to 13/02/2022

Barnstorming NZ’s breakfast tables

Barn Cage Free eggs lead the way at Farmer Brown Kiwis love their Farmer Brown eggs, Farmer Brown Barn Cage Free have and right now the eggs they’re really been taking the country by storm loving are Barn Cage Free. lately – because they’re from a brand we all trust for consistent, reliable, We all know Farmer Brown eggs are this country’s favourite* everyday super tasty eggs. It’s also why Farmer Brown Barn Cage Free should be protein. That’s why consumers your segment choice – because throughout New Zealand shop Farmer Brown is Kiwis’ first choice*. for them every week. *Source: IRI MarketEdge MAT to 13/02/2022: Farmer Brown is the number one brand in volume and value of total eggs in NZ supermarkets.

NEW Blackmores Daily Immune Action Support your immune health all year round with Blackmores Daily Immune Action. Specially formulated with a blend of vitamin C, vitamin D, zinc and elderberry; all you need is one tablet daily to support healthy immune system function, so every day can be a feelgood day. Available in 30s & 60s pack sizes. Visit: www.blackmoresnz.co.nz For free advice from a Blackmores Naturopath call: 0508 757 473

Queen Anne Chocolate Fish Bites …. Just like Chocolate Fish but smaller

NEW Otis Oat M!lk The Chocolate One Introducing Otis Oat M!lk – The Chocolate One, the latest edition to sit alongside the brand’s Everyday and Barista products. Made using 100% New Zealand oats and using Fairtrade Certified Cocoa, it’s a naughty but nice plant based treat. Made with dairy drinkers in mind, its creamy, chocolate taste makes it irresistible for all. For enquires please contact Finn on 0274 248 496 or finn@otisoatmilk.co.nz. For further information visit www.otisoatmilk.co.nz.

Queen Anne Chocolate Fish Bites 170g are a new sharing option, in both Dark Chocolate Raspberry Marshmallow Fish Bites & Milk Chocolate Strawberry Marshmallow Fish Bites. Chocolate Fish Bites offer the consumer several benefits: a sharing pack, New Zealand Made, Gluten Free and natural flavours & colours. www.queenanne.co.nz

The tasty way to soothe that tickly feeling Popping up in Children’s Wellness, “NEW” Comvita Kids Soothing Pops are a natural way to tame those tickly throats. Harnessing the power of UMF 10+ Manuka Honey with the added benefit of Vitamin C for daily immune support. Available in 3 yummy flavours the kids will love. Comvita is distributed in NZ by Wilson Consumer Goods. For trade enquiries please call 0800 651 044 or email: info@wilson.co.nz

Pink, Punchy and Powerful Crisp and refreshing, with a taste unlike any other, the Pink Lady® apple invites you to ‘taste the wow’. Our Pink Lady® juice stands strong at the tart end of our sweet-o-meter, providing apple juice lovers with an exciting and a unique flavour profile. hello@theapplepress.co.nz 0800 LOVE APPLES www.theapplepress.co.nz @theapplepress FMCG BUSINESS - MARCH 2022

SWEET TREATS Fresh flavours, fun, share packs, indulgence and premium products are some of the key trends in chocolate and confectionery this year. Ken Davis, Senior Client Manager at DKSH told us that Lindt continues to drive the innovation in the Boxed Chocolate category with a fantastic new mainstream recipe. “Lindt Boxed Chocolates are growing at 9% ($ value QTR in TKA to 23/1/22 IRI data),” he says. “Lindor Milk Salted Caramel launched on January 24th just in time for Valentine’s Day. But in March, Lindt will be launching into the super-premium blocks space meeting consumer needs with a new luxuriously indulgent range to improve the category average selling price. “Consumers are looking for products that are sensorially rich to eat, leaving them feeling satisfied, like they’ve treated themselves with a high level of inclusions and texture on-trend,” says Davis. Lindt Les Grandes blocks are an indulgent satisfaction of roasted nuts and Swiss Lindt chocolate. The Lindt’s Master Chocolatiers have created these masterpieces using whole nuts, roasted to perfection in-house for absolute freshness. The addition of caramelised nut pieces provides richness and crunch - blended with finest Swiss chocolate, absorbing the stunning roasted nut flavour, making this a true delight! Davis says consumer feedback included: “These are amazing”; “My alltime favorites”; “OMG these are delish”; “Best EVER!!”; “Finally, a white chocolate nut option!” The iconic Lindt Gold Bunny is also back in store now, celebrating his 70th birthday but be quick and “catch him before he’s gone,” says Davis.

Perfect for sharing... Queen Anne Chocolate Fish Bites The success of the premium Queen Anne Chocolate Fish 50g range created an opportunity for a ‘bite sized’ chocolate fish, to add value in the Share Pack sector of the Chocolate Confectionary Market. Queen Anne Chocolate Fish Bites 170g launched strongly, with national distribution by the end of 2021, despite the challenges of a COVID impacted retail environment. Appealing visual graphics on these boxed products support both 22

FMCG BUSINESS - MARCH 2022

Gifting and Impulse purchase. Queen Anne Chocolate Fish Bites offer the consumer several benefits: New Zealand made, gluten free and natural flavours and colours. There are two variants in the 170g range - the #1 selling Dark Chocolate Raspberry Marshmallow Fish Bites and the iconic Milk Chocolate Strawberry Marshmallow Fish Bites. “The Dark Chocolate Raspberry Marshmallow Fish Bites 170g now has the highest ROS over all our everyday boxed products,” says Managing Director Sarah Adams. “With the success of the Chocolate Fish Bites we are exploring range extension opportunities,” Adams says. To facilitate the year-on-year brand growth, Queen Anne is moving into larger Christchurch manufacturing premises in mid-2022. “Queen Anne continues to contribute to the confectionery category, growing more than four times faster than the category, at 11.1% in value vs 2.7% category growth (Nielsen MAT 02/01/2022),” says Adams. Contact your local Alliance Marketing Representative for further information on the Queen Anne chocolate range.

CMY

[ category insights ] Tony’s Chocolonely

CHOCOLATE & CONFECTIONERY

Tony’s Chocolonely have a bold mission to make 100% slave free the norm in chocolate. Launched in NZ in late 2020, the B-corp certified ethical Fair-trade chocolate has been embraced by Kiwis and Tonys’ Chocolonely can now be found on the shelves at Farro Fresh, New World, Four Square and Countdown stores around the country as well as smaller gift and boutique stores. Local distributors Cook & Nelson have added a new flavour to the range - Dark Milk Chocolate Pretzel Toffee 42%, a rich, creamy dark milk chocolate dotted with crunchy salted pretzel pieces with a sweet toffee crunch all in a dazzling purple wrapper.

Dollars

Dollars Growth % YA

Total Confectionery

$656,487,241

3.3

Chocolate Blocks

$194,123,348

0.0

Chocolate Gifting/Assortments

$78,029,817

8.9

Chocolate Singles

$64,190,581

5.3

Chocolate Multipacks

$53,531,128

-1.9

Seasonal Chocolate + Confectionery

$58,541,185

2.6

Gummies/Jellies

$51,600,904

5.5

Licorice

$29,307,956

2.2

Gum/Bubble Gum

$26,636,784

-1.8

Mint

$19,144,212

1.9

Mixed Sugar

$11,411,656

16.5

Boiled Sweets

$10,983,014

0.7

Marshmallow

$10,345,106

0.6

All Other

$48,641,550

14.3

Source : IRI Market Edge Grocery MAT to 30/01/22 (Selected segments)

The Tony’s Chocolonely Festive (Christmas) bars were introduced in 2021 and sold out within weeks - keep an eye out for more exciting seasonal ranges throughout the year. The Tony’s Chocolonely core range now has seven 180g bars: • Milk chocolate caramel sea salt 32% • Milk chocolate 32% • Milk chocolate hazelnut 32% • White chocolate raspberry popping candy 28%. • Dark Milk Pretzel Toffee 42% • Extra dark chocolate 70% (dairy free) • Dark chocolate almond sea salt 51% (dairy free) Tony’s Chocolonely is distributed by Nick Brown and Becs Caughey from Cook & Nelson. For trade QA-Ad-FMCG-Mag-Fish-Bites-2022-02.pdf

21/02/22

11:53 PM

New Zealand handcrafted chocolate since 1925

www.queenanne.co.nz

[ category insights ] enquiries please contact Becs Caughey on Rebecca@cookandnelson.com or 021886024. Minimum Order Quantity: 6 cases of 15 x 180g bars - whole cases can be mixed across SKUs. Order details: Order by 10am weekdays for delivery next weekday Auckland, 1-2 days North Island, 2- 3 days South Island. www.cookandnelson.com www.tonyschocolonely.com.

Easter chocolates on display at ISM

Double D’s sugar-free confectionery Pioneering healthier sweets for over 100 years by delivering quality products and taste sensations, Double D’s sugar-free confectionery range has something for everyone! Brand Manager Aimee Tibbotts explains: “We pride ourselves to be market leader in sugar-free confectionery, appealing to consumers looking for healthier options. According to IRi Big Picture*, Double D is growing at 18.1% in value and 14% in units contributing 12.8% growth to the sugar confectionery category. “With 100% naturally derived ingredients, it’s easy to satisfy your sweet cravings with Double D.” Double D products are sugar free, gluten free and GMO free. Double D’s range includes sugar free marshmallows, fruit drops, fruit chews, chocolate drops, mints, gummy bears and butter candy (which uses New Zealand butter!). You can shop Double D’s delicious sugar-free confectionery at your nearest Countdown and selected New World and PAK’nSAVE stores. For more information on Double D, please contact sales@houseff.co.nz. Data source: IRi, MAT June 2021

Winner of the Most Innovative Product awards at ISM.

News from ISM A unique cocoa praline from Confiserie Vandenbulcke and vegan toffees from Arna Falco were among the top three Most Innovative Product awards at ISM in Cologne, Germany. The New Product Showcase is a special exhibition on the Central Boulevard of the trade fair with 45 display windows, showcasing over 50 products from more than 30 exhibitors from 11 nations. The top innovations were selected by an independent jury of experts from the industry, trade and science. Confiserie Vandenbulcke from Belgium achieved first place in this year’s New Product Showcase Award as the jury was impressed by how holistically the whole cocoa fruit was brought to life in a praline. According to the jury, the Belgian chocolatiers succeeded in capturing the taste essence of a cocoa pod with all its nuances in a fruity, chocolatey way in the Cabosse filling, thus creating a new taste experience for pralines. By using the whole fruit organically, not only is there less waste, but the nutrients and minerals are also preserved, giving Cabosse its unique taste. From Easter gifts to sweet snacks and luxurious chocolates, ISM presented it all earlier this year, with around 1,100 exhibitors from 56 countries. For more information visit https://www.ism-cologne.com/fair/ industry-trade-fairs

FMCG BUSINESS - MARCH 2022

[ cover story ]

ALLSORTED

The team wins the Guinness Book of World Record title in 2016.

The home of New Zealand lollies shines a light on its iconic RJ’s Licorice Allsort – with its delicious layers instantly recognised by licorice and lolly lovers around the world, the demand for this iconic treat shows no signs of slowing down. At RJ’s Levin factory the lines are continuously running - and for good reason. “At RJ’s, our 120+ staff work day and night to keep up with demand that exceeds 50 million individual Allsorts every year,” shares Jason Clements, General Manager NZ & International. “When you combine that with the many other Kiwi favourites made right here in Horowhenua, it’s astonishing how far and wide a taste of New Zealand goes around the world. “Each batch of RJ’s “sorts” is a remarkable process to observe and

Licorice Allsorts are undoubtably iconic, one of the classic, traditional lollies that consumers enjoy across the world. So, what do the Kiwis do to stand out? • A unique zig-zag ridge in their licorice sheet, which is formed during RJ’s signature extrusion technique. • Lovers of Allsorts will often have a favourite colour – and every RJ’s Allsort colour has a different flavour consisting of Lime, Banana, Orange and Raspberry. The Kiwi flavours are different to other Licorice Allsorts which tend to be all one flavour – vanilla or coconut. • Allsort aficionados are divided in the “proper” way to eat an Allsort with many insisting on peeling each layer and others devouring them in bites. • A 100% Palm Oil Free brand, RJ’s fans can enjoy orangutanfriendly treats across the range.

“AT RJ’S, OUR 120+ STAFF WORK DAY AND NIGHT TO KEEP UP WITH DEMAND THAT EXCEEDS 50 MILLION INDIVIDUAL ALLSORTS EVERY YEAR” – JASON CLEMENTS, GENERAL MANAGER NZ & INTERNATIONAL very artisan, which would surprise even our most loyal consumers. Production is closely watched over by a team of licorice experts to get the perfect Allsort, Smallsort and Tallsort every time. Their eagle eyes are ensuring perfect texture and consistency in the confectionery with the end goal of having even, smooth layers,” says Clements. Each of the Allsort layers are made and layered individually on top of each other before being cut, packed, and sent to retail stores around the world ready for eager consumers. The craft and care put into each batch is obvious and the Levin factory, humming away enthusiastically, is a glowing example of regional industry. It cements RJ’s position as the home of New Zealand’s favourite lollies. Amongst RJ’s claims to fame is securing Kiwis a Guinness World Record in 2016 with a whopping Allsort almost a metre square. It was a highlight for the nostalgic treat the world over. “Many fans have childhood memories of eating an Allsort,” says Clements, “it’s a lolly that’s inter-generational and has a special place in the hearts of consumers. We were blown away by the crowds that showed up for the record-breaking moment – over 3,000 to celebrate a lolly.” Now, in 2022, RJ’s Levin roots remain strong, with thousands of visitors dropping by their factory shop each year to stock up on their favourite treats. Their range is available at leading retailers the world over and has greatly expanded beyond just licorice, with Kiwi favourites such as Fabulicious, Jaffa’s, Oddfellows, Mackintosh’s and Heards also being part of the sweet line up on offer. So, what’s next for the Allsort? “Well, you’ll find out in a few weeks!” Clements laughs. “RJ’s Allsorts are a Kiwi icon yet probably remain very understated in the NZ confectionery landscape. I can’t say too much, but I can say Kiwis will be seeing this little guy a lot more soon with an exciting TV feature in the coming weeks. “As always we love to hear from our fans and they often suggest new ideas across our RJ's digital platforms, so we'll continue to listen and do our best to make lollies to excite them.” For more information visit https://rjs.nz/ FMCG BUSINESS - MARCH 2022

Frucor and Pita Pit team members announce the partnership.

FRUCOR SUNTORY PARTNERS WITH PITA PIT NZ Last month, Frucor Suntory proudly announced an exclusive partnership with Pita Pit NZ which will see the business become Pita Pit New Zealand’s exclusive beverage partner from March 1, 2022. The Frucor Suntory range will be available across 87 restaurants, including Pepsi, Pepsi Max, Mountain Dew,7Up, Gatorade, Suntory Boss Coffee, NZ Natural, H2go, Just Juice, Ribena, McCoy, V Energy & Allganics brands. As two challenger brands, with fire in their belly, the synergies between both organisations are very clear. New Zealand Head of On-The-Go, Justin Ramsay, commented: “We are thrilled to be able to partner with one of New Zealand’s leading quick-service restaurants. Signing a multi-year partnership with Pita-Pit is part of our drive and commitment to grow our PepsiCo portfolio across multiple channels. Pita Pit CEO, Duane Dalton added, “This exclusive partnership will 26

FMCG BUSINESS - MARCH 2022

empower us to continue to offer our customers fantastic beverage options that complement our menu offerings: that suit any occasion, budget and diet.” “Together, we make it easier for Kiwis to choose nutritious, tasty, authentic and fresh food that tastes great and is good for you.” Foodservice is a particular focus for growth for Frucor Suntory’s on-the-go division which also looks after the petrol, convenience and leisure sectors The new partnership complements growing momentum in the on-the-go channel, expanding existing foodservice and leisure customers, including Hoyts, Zambrero, Better Burger and Kiwi Grill. Ramsay describes the multi-year agreement as a partnership that goes beyond the fine print; with both businesses making a shared commitment to work collaboratively to offer great value, variety and experience that will excite and delight customers. “We’ll be working closely together to help grow and transform each

[ profile ] other’s commercial businesses and digital practices. Our capabilities, expertise and experience are a core part of our partnership proposition to unlock growth.” As part of global beverage powerhouse, Suntory Group, the Oceania team is proud to bring global best practice and insights to drive beverage purchase to our customers. Ramsay points to Frucor Suntory’s expertise across the on-the-go and food-service channels, with a team knowledgeable in enhancing visibility on menu boards and using product imagery to prompt consumer purchase. With a range that spans all consumer need states and occasions, the Frucor Suntory portfolio provides broad consumer appeal across three key areas. It offers the ability to match and pair beverages to all moments of the day and menu offerings, increasing the likelihood of conversion and basket penetration. Central to this conversion, is the creation of a clear value ladder with simple, combos and deals, as well as add-on mechanics for all budgets to maximize reach. Lastly, the team understands how to shape a superior customer experience, create excitement through ‘new’ news and reward consumers to drive repeat visits. Apart from wow-ing Kiwis with delicious food and beverages, both companies also share a common vision to do the right thing by the communities they serve, says Ramsay. “Like Pita Pit, Frucor Suntory is committed to providing highquality products, engaging in fair business practices and achieving our sustainability and wellbeing goals.” The business knows consumers want ‘better-for-you’ options to support lifestyle and wellbeing changes, with the low or no-sugar range growing 4.5 times faster than full-sugar beverage options. To meet this changing preference, Frucor Suntory’s goal is to have 1 in 3 beverages sold as low or no sugar by 2030, a significant move from 2018’s 1 in 6 benchmark. The business continues to invest in its local state of-the-art Research and Development facility which supports the product innovation pipeline and the evolution of its portfolio. For example, Frucor Suntory’s team of scientists is focused on research into new sweetener options that could deliver great tasting beverages without compromise. While consumer needs continue to change, the Oceania team leverages industry insights and expertise from across the Suntory Group to lead the way in better drinks.

Brad Erceg NZ Sales Director at Frucor Suntory and Pita Pit CEO Duane Dalton

It’s an ambitious spirit that continues through to the organisation’s focus to positively impact the world around it by ‘Growing for Good’ making sustainability an easier choice for consumers and customers. Ramsay commented, “We’re also keenly aware of how important it is to have a responsible approach to packaging. Our goal is to have 100% recyclable packaging by 2030 and I am proud to say we are well on our way to achieving our target, with over 92% of our portfolio using recyclable packaging.” The business’ packaging excellence team continues to drive innovation in this area, like colour removal to improve recyclability and lightweighting to use less material. With a focus on creating lighter packaging and lower emissions, the team is breaking new ground without compromising packaging quality. Reflecting on the road ahead, Dalton added, “We are excited to partner with Frucor Suntory, who set themselves apart from their competition by their ability and passion to wow consumers with exceptional beverages, experiences and values.” Ramsay concluded, “At Frucor Suntory, our people are connected by a hunger to make drinks better – from our product portfolio to our sustainable packaging solutions and the customer experiences we create.” “This is a big win for our team, and I know there are going to be some great opportunities to grow the Pita Pit business and bring some welldeserved refreshment to Kiwis across the country. I know I’ll be at the front of the queue, ready and waiting to order my Pepsi Max and Pita on March 1st!”

About Frucor Suntory Since its beginnings in the early 1960s as part of the New Zealand Apple & Pear Board, Frucor Suntory has evolved from a small local juice business to a significant international beverages company. The company produces more than 20 million cases of drinks a year at its South Auckland manufacturing plant. Frucor Suntory manufactures, markets and distributes a range of fruit juices, fruit drinks, energy drinks, waters and soft drinks. It is the company behind iconic brands V, h2go, Just Juice, Fresh Up, Maximus and Simply Squeezed. The company currently employs 1,000 people across Australia and New Zealand. Since 2009 Frucor Suntory has been wholly owned by leading Japanese beverage and food company Suntory Group www.suntory.com FMCG BUSINESS - MARCH 2022

SAUCES & DRESSINGS Spicy and saucy innovations are flying off the shelf at supermarkets as shoppers reach for new and interesting ways to recreate their favourite restaurant meals at home. While BBQ sauce remains a favourite staple in many Kiwi kitchens, there is an exciting array of new products on offer, from Sriracha to Soy and Satay, as well as American-style marinades and sauces. A wide range of chilli sauces inspired by Mexican cuisine is also arriving in supermarkets, designed for those who like it hot.

New from Kikkoman

A wide range of chilli sauces inspired by Mexican cuisine is also arriving in supermarkets.

FMCG BUSINESS - MARCH 2022

Introducing Kikkoman Poke Sauce and Ponzu Citrus Seasoned Dressing & Sauce. Kikkoman Poke Sauce is created from Kikkoman Naturally Brewed Gluten Free Soy Sauce, toasted sesame oil and a dash of spicy chilli. It’s a palate-pleasing blend of spicy, savoury and sweet, can also be used as dressing for salads and noodles and as a flavourful dip sauce for samosas and sausage rolls or any finger food.

[ category insights ]

“KIKKOMAN PONZU CITRUS SEASONED DRESSING & SAUCE IS A GLUTEN FREE KIKKOMAN SOY SAUCE BLENDED WITH AROMATIC LIME.”

Perfect for Poke Bowls, a dish from Hawaii, which can be made in a variety of ways, especially with beautiful New Zealand kai moana; and Kikkoman has made the sauce part easy! To create the perfect Hawaiian poke bowl at home, simply grab fresh shrimp or cubed raw fish and serve with Kikkoman’s Poke Sauce over rice and vegetables. Kikkoman Ponzu Citrus Seasoned Dressing & Sauce is a Gluten Free Kikkoman Soy Sauce blended with aromatic lime, one of Japan’s favourite condiments. It has a lovely sweet, sour and salty flavour, full of umami with a citrus twist. Perfect for fish, red and white meat as well as being a fantastic dressing for fresh salads. Jazz up your summer meals with Kikkoman Ponzu Citrus seasoned dressing. For an

BOTTLED SAUCES & DRESSINGS Dollars Total Bottled Sauces

Dollars Growth % YA

$110,546,138

1.4

Tomato

$33,056,893

-2.0

Chilli

$15,631,236

4.7

BBQ

$13,169,166

7.4

Soy

$11,553,390

2.7

Ketchup

$5,144,188

3.1

Fruit

$4,219,968

-1.7

Marinades

$3,733,306

10.9

Worcestershire

$3,341,011

-1.4

Mint

$2,551,877

-5.5

Seafood

$2,479,851

0.9

Oyster

$1,781,749

5.2

Teriyaki

$1,328,501

6.3

Hoi Sin

$1,226,294

8.3

Tomato Chutney

$1,075,381

1.8

All Other

$10,253,328

-2.2

Total Salad Dressings

$85,330,786

6.8

Whole Egg

$34,295,060

5.8

Aioli

$15,197,115

9.4

Mayonnaise

$15,554,184

11.9

Asian Mayonnaise

$5,000,365

35.4

Balsamic

$2,022,681

-8.4

Mustard Bases

$1,457,789

-7.0

Ranch

$1,297,042

2.7

Potato Salad

$1,201,373

-10.6

Caesar

$921,185

-24.5

1000 Island

$863,326

-2.4

French

$797,873

-4.7

Vinaigrette

$727,443

20.0

Avocado

$702,664

0.1

Coleslaw

$573,985

0.0

All Other

$4,100,993

-9.2

Source : IRI Market Edge Grocery MAT to 30/01/22 (Selected segments)

unforgettable dipping sauce put garlic, onion, brown sugar, ginger, chilli and Ponzu sauce into a food processor and blend them with olive oil. Or simply mix Kikkoman Ponzu sauce with crushed garlic and marinate chicken breast with it overnight before you fire up the BBQ - you’ll love it. For sales enquiries, call 09 410 1066, e-mail sales@houseff.co.nz or visit https://houseff.co.nz https://www.facebook.com/KikkomanNewZealand @kikkoman.nz https://www.instagram.com/kikkoman.nz/

[ good business ]

DAILY GOOD IMMUNITY SHOTS SECURE WOOLWORTHS RANGING Kiwi brand Daily Good has announced the launch of its organic immunity shots in Woolworths Australia this year, just in time for winter. Launching in approximately 350 Woolworths locations mid-2022 Daily Good will be ranged in all three variants: Organic Fiji Ginger, Organic Fiji Turmeric and Organic Blackcurrant. Daily Good’s ranging success has been in collaboration with Woolworths Seedlab Australia, a Woolworths Group funded program that’s set up to incubate FMCG businesses and help them scale. Daily Good co-founders Rhona Mackenzie and James Sweetbaum are proud to be waving the New Zealand flag as the only Kiwi company that was accepted into the program, and one of only three companies selected to pitch to Woolworths at the end of the 2021 program. MacKenzie says, “the addition of Daily Good in Woolworths Australia is something we are really excited about, Daily Good has been a true passion project for the team, supporting both Ranadi Organics and the rapidly growing immunity category.”

The all-natural immunity shots are formulated with USDA-certified organic Fijian Turmeric and Ginger that is grown by Daily Good’s partner farm in Fiji, Ranadi Organics. Ranadi, which aptly means ‘queen’ in Fijian, is a womanimpact audited farm that provides rural Fijian women with livelihoods, housing, and education. As a purpose-led brand Daily Good provides scale to the awardwinning Fijian farm’s impact work, and the additional ranging in Woolworths will continue to increase Daily Good’s sustainability focus. Daily Good was born out of New Zealand’s first COVID-19 lockdown that took place in March 2020, responding to a global trend of increased focus on our immune health and looking to natural ingredients and foods to support immunity. “The global growth of immunity products is just eye-watering when you look into the data,” says MacKenzie. Daily Good has been recently awarded ‘FMCG Product of the Year 2021’ by FMCG Business Magazine, as well as collecting a Gold, Silver and Bronze medal in the Outstanding New Zealand Food Producer Awards 2021.

[ profile ]

HEARTLAND POTATO CHIPS LAUNCHES THE EXTREME CRUNCH RANGE Many may know how the Heartland Potato Chips business came to be. Raymond Bowan, supplier to the local chip manufacturer, was presented the opportunity of a lifetime when the overseas owners closed their Timaru factory. The Bowans bought the factory, installed a world class plant and are today, New Zealand’s only 100% Kiwi owned potato chip company. Raymond had one goal, to make the best chips New Zealand had seen, using only his own Fallgate Farm’s premium potatoes - ‘From our farm to you’. Fast forward 12 years, Heartland Chips is a true New Zealand success

FMCG BUSINESS - MARCH 2022

story, being New Zealand’s most innovative and fastest growing potato chip company. Kyle Miller the company’s newly appointed Commercial Manager explains, “Heartland has a simple goal, to ensure quality is at the heart of everything we do. This is driven from the top with Raymond, still being hands on with potato production. This ensures without exception, only the best potatoes are used for our delicious chips and crisps. When it comes to quality, our new Extreme Crunch Kettle Cooked Wave Chips are no exception, created to be all about the CRUNCH; we know texture is just as important as flavour to consumers. One buyer actually emailed after sampling, to say it was like an earthquake! This was exactly result we were after which was no mean feat, with over ‘two years’ work to perfect the cooking process.” Extreme Crunch will be released in four flavours: Southern Sea Salt, Apple Cider Vinegar, Maple Bacon and Sweet Chilli, these will soon be Kiwis’ favourite! For more information contact your Twin Agencies Ltd Account Manager on 0800 258946 or visit www.heartlandchips.co.nz

[ good business ]

TJ PERENARA INVESTS IN NZ’S EMERGING PLANT-BASED SECTOR International rugby player and committed vegan TJ are becoming more open to trying plant-based Perenara is a new ambassador for Kiwi plant-based alternatives. You don’t need to miss out on anything protein brand plan*t, and is also investing in parent – I’m a big fan of spaghetti Bolognese and burritos company Sustainable Foods, which is currently raising after a big game, which plan*t is perfect for,” he says. capital to expand its operations locally and prepare to The elite athlete says he has always planned export later this year. ahead to ensure he gets the right nutrition to One in three Kiwis are consciously reducing their perform at a high level and says with plan*t’s meat consumption, with that number increasing products being high in protein and nutrients, as well every year. Sustainable Foods was founded in 2019 as delicious and convenient, it’s no harder to achieve to meet growing consumer demand for alternative than when he ate meat. proteins. plan*t was launched last year and makes Justin Lemmens, CEO of Sustainable Foods, says burger patties, mince, chicken alternatives and vegan they’re thrilled to work with Perenara to build awareness International rugby player and committed vegan TJ Perenara sausages. It will soon release its world-first hemp around the benefits of adopting a more plant-based chicken product, which is made with hemp seeds and diet. “This is one of the fastest-growing global markets. hearts grown in Taranaki. While it’s relatively new, it’s estimated it will be worth more than $35 billion Perenara originally adopted a vegetarian diet in 2016 then became by 2027. We’re already seeing this growth in New Zealand – in the last three vegan in 2019 after the Rugby World Cup. Originally, his reasons were years we’ve experienced 800% growth. To work with TJ as an ambassador ethical, but as an athlete, the health benefits he experienced were a and investor as we take our business to the next level is incredibly exciting, huge bonus. as we look to scale up local capability and export,” he says. “People are genuinely surprised when they find out I’m vegan because Sustainable Foods Co-Founder Kyran Rei says they’re looking to hit it goes against everything they’ve been taught. However, a lot of people $20m in revenue by 2025 as exports ramp up.

[ profile ]

TURKISH BREAD TEAMS UP WITH LEGASEA Turkish Bread have teamed up with LegaSea to bring you the Hi Ika collectible edition. Based on the quintessential card game Go Fish we have developed 24 cards that are being given away free in Turkish Bread pizza base packs. An island nation, in New Zealand and you are never more than 120km from the ocean. For many of us, an outdoor lifestyle is the foundation of our fondest memories. Time at the bach, surfing, sailing, fishing, and relaxing at the beach shape our perspectives and make us who we are as a country. Yet our marine environment is changing. Pollution, how we fish and the amount we harvest are all causing a decline in coastal fish populations. We have also observed that most New Zealand children are very knowledgeable about our native birdlife - tui, kiwi and pīwakawaka being easy examples. However, this is not the same for the creatures which inhabit our coastlines. This is why Turkish Bread has teamed up with the team at LegaSea (www. legasea.co.nz) to bring you the Hi Ika collectible edition. Our objective is to:

1. Provide resources that engage the next generation. Encourage our children to learn more about the sea creatures which inhabit our coastlines. 2. This knowledge will see coastal adventures become more animated, vivid, and memorable. 3. The cards are bilingual because we want to elevate Te Reo as New Zealand’s only unique language. Turkish Bread are proud to have zero food waste by being part of the Legasea Kai Ika Project. All our seconds are collected and made into meals and or redistributed to families across Auckland. For more information on Kai ika visit: www.kaiika.co.nz. We also have 24 numbered Instant Win Gold cards randomly hiding inside packs of our 3pk Thin & Crispy with Pizza Ovens and Pizza Bases to win! For more information visit turkishbread.co.nz or contact Blair Johnstone on blair@turkishbread.co.nz or 027 645 4688, or contact Legasea, support@legasea.co.nz or 0800 534273 FMCG BUSINESS - MARCH 2022

The coming year will be a big one for the employment market as the war for talent intensifies.

FMCG RECRUITMENT OUTLOOK FOR 2022 From the specialist FMCG recruitment team at Convergence Partners Two years into the COVID-19 pandemic and leaders of FMCG businesses are continuing to face many overwhelming challenges - inflationary pressure, economic uncertainty, a complete disruption of global supply chains, and dramatically shifting consumer behaviour. Add to this, the coming year will be a big one for the employment market as the war for talent intensifies, making retention and talent attraction top priorities for FMCG employers. As a specialist FMCG recruitment team, we’re in a unique position to have a bird’s eye view of the current talent landscape - here’s what we’re seeing.

Skills gaps Many FMCG businesses are going through significant digital adoption and transformation, requiring increased diversity in digital capabilities and technology to fill the skills gaps. In particular, we’re seeing supply chain efficiency and optimisation being a priority for companies, who 32

FMCG BUSINESS - MARCH 2022

in turn are seeking out specialist candidates with the skills to deliver on transformation projects and efficiency gains. Providing learning and development opportunities is business-critical to ensure employees meet current and future job requirements, and is ranking ever more highly in candidates’ lists of requirements.

Hybrid & Flexibility While there’s no one-size-fits-all approach here, we know that those organisations who prioritise flexibility and adaptability will stand out as leaders in this new world of work. We are also starting to see some businesses taking action to reduce ‘proximity bias’, to ensure that all employees feel included, regardless of where they choose to work. There’s no doubt that employers who remain staunchly opposed to hybrid working models will struggle to secure high quality talent.

[ feature ] Culture With so much sudden change in the workplace from both businesses and employees in the past two years, employers and managers continue to focus on improving and fostering positive, safe and inclusive company cultures across dispersed workforces. With many employees working from home, companies are grappling with the challenge of making culture count for a dispersed workforce.

OPPORTUNITIES THAT FLY OFF THE SHELF

Remuneration As the influence of company culture wanes, many employees’ focus has shifted to the prospect of higher salaries and greater benefits. Combined with an unprecedented demand for talent, near record employment levels, and the ongoing challenges of securing offshore talent, this environment will continue to see fierce competition drive up compensation levels.

Since 2010, we’ve been opening doors, making introductions, supporting career defining moves, and changing the way FMCG businesses attract and recruit exceptional talent. With a dedicated and experienced team of FMCG consultants across our business, we take the time to live, breathe and consume in your market - we know how it ticks and we know who’s who. Got a specific or critical role to fill? A tricky brief? We match talent with talent and keep NZ’s FMCG industry brilliant. Let us connect you. Erin Kirk Sales & Marketing

“MANY EMPLOYEES’ FOCUS HAS SHIFTED TO THE PROSPECT OF HIGHER SALARIES AND GREATER BENEFITS”

erin@convergencepartners.co.nz 09 300 6791 | 027 532 5328

Michelle Elsley Supply Chain & Operations michelle@convergencepartners.co.nz 09 300 6794 | 022 640 2701

Claire Ellis Finance & Accounting

Wellbeing Burnout has reached historic levels in the past two years, and mental health in 2022 remains a top priority for companies as focus shifts from short-term solutions to transforming organisational culture that supports all aspects of their employees’ well-being.

Move Fast Talent pools are swiftly evaporating with many FMCG businesses being unable to find enough candidates to satiate demand. Most candidates actively looking for work are currently considering multiple opportunities, so if you are too slow, you’ll miss the boat on securing the best talent.

claire@convergencepartners.co.nz 09 300 6792 | 021 500 666

ConVergence

Partners

EXECUTIVE RECRUITMENT | SPECIALIST SEARCH

THE BIGGEST JOB AD RED FLAGS AND HOW TO AVOID THEM

Kirsty Anne Ferguson, Founder of Interview Chix

Recruiting can be a challenge in the best of times; writing the perfect job ad, managing the applications and spending hours on interviews in the hopes you’ll find the perfect person to join your team. The current tight labour market has undoubtedly made the process of recruiting staff all the more difficult. According to SEEK’s 2021 Year in Review report, the job website saw record-breaking job ad numbers coupled with a decline in the number of applications per job. This was caused by a smaller talent pool available to fill roles and a nation of workers more conscious of job security. As a result, it’s more important than ever to ensure you put your best foot forward to find the talent you need. Kirsty Anne Ferguson, founder of Interview Chix offers professional advice to businesses and candidates for successful job-seeking. An expert in this field, Ferguson says that nailing the language in your job ad is a simple yet effective first step to attract new hires: “Although it can be tempting to use buzzwords and ask for a ‘superstar’ or ‘guru’, you need to think carefully about the language you use in your job ads and what that might say to candidates. Switch seats from hirer to candidate when you write your job ad, what would attract or repel you as a candidate?” In fact, SEEK data* reveals phrases in job ads that are most likely to be seen as immediate ‘red flags’ by job seekers, with some recruiting favourites making the cut. So what are the top red flags, and how can you rephrase them to avoid scaring away top talent?

FMCG BUSINESS - MARCH 2022

Wearing ‘many hats’ Although this is a phrase you’ve likely seen in a slew of job ads (or even written yourself), this term is the biggest red flag to job seekers. One third of Kiwis (34%) think that this common descriptor is one of the signs they should have paid attention to in a previous role. “To candidates, this popular phrase can often give the impression that they’ll be expected to do work outside their job description. While some may thrive in an environment like this, it may be best to retire this phrase and instead stick to the actual ins and outs of the job for the ad. You can assess cultural fit, or ‘how’ someone works at an interview. A job ad’s primary role is to attract talent,” explains Ferguson.

A family business The concept of a close-knit work culture may be an attractive bonus for some, but for others it is a big red flag. Job ads that describe the work culture as operating “like a family” turn off as many as one in five (21%) potential candidates, with many Kiwis viewing the phrase as a sign that there are no boundaries. “With home offices and hybrid working becoming the new normal since COVID-19, it can be a challenge to distinguish clear boundaries between our professional and personal lives. Almost all Kiwis (99%) value having a healthy work/life balance and setting boundaries is key to protecting this. “Instead of describing your workplace as ‘like a family’, Ferguson suggests highlighting other work culture positives, such as team building days, flexibility and professional development

[ recruitment ] opportunities. A phrase I use to show a care-based culture is 'people come first'."

Under-resourced and overworked Most business owners would agree that they look for employees who have a strong work ethic. While this may be the case, there are a few common phrases that could send candidates running for the hills. Key red flag phrases include ‘a high performance culture’ (17%), a ‘strong start-up culture’ (10%) and lines such as ‘get ready to get your hands dirty’ (14%). “These phrases can give the impression that the business is under-resourced and overworked. Even those with the best work ethic could be scared away with fears of burnout, so it could be best to avoid these expressions altogether unless you’re an actual startup. Using more tangible statements can attract the right job seeker. Those that identify work methodology and motivation such as ‘project or deadline driven’ or ‘motivated by ideas and challenges’ are exciting and will send people your way who know themselves and what they can contribute,” explains Ferguson.

Work hard, play hard Although many businesses boast about their ‘work hard, play hard’ culture, this style of work isn’t for

everyone. Similar to some of the signs previously mentioned, there are some specific red flags Kiwis say they found either in the job ad or shortly after starting the job. Although it sounds like something straight out of the Google campus, 12% of Kiwis said they found the use of “sleep pods” in a current or previous workplace to be a red flag. Similarly, one in ten highlighted having dinners together with their colleagues regularly was a red flag, as it means they are often expected to work overtime. “Employers need to think carefully about what perks or benefits they are offering. Although some may feel as though they’re for the employees, it could appear to the job seeker that it’s really only beneficial to the company and give the impression that they might be headed straight for burnout. “To avoid any issues, think about the perks you’re offering, how you communicate the benefits with current and potential employees and perhaps get a friend or mentor to sense-check anything you’re unsure about. Take regular stock of what benefits your current employees actually use and appreciate, to gain perspective.” *July 2021 Sherlock Report - Independent research conducted by Nature on behalf of SEEK.

“ALTHOUGH MANY BUSINESSES BOAST ABOUT THEIR ‘WORK HARD, PLAY HARD’ CULTURE, THIS STYLE OF WORK ISN’T FOR EVERYONE.”

[ recruitment ]

WELCOME TO HENSON RECRUITMENT NZ FMCG & CONSUMER RETAIL RECRUITMENT SPECIALIST

Being the owner and a ‘hands-on’ recruiter with over 18 years recruitment experience, I am a specialist FMCG recruiter unearthing Sales, Marketing, Category and NPD talent within the FMCG and Consumer Retail space. Having previously worked for Unilever, I have managed to bring an abundance of inside industry knowledge into my FMCG recruitment career resulting in the creation of an enviable network and a solid understanding of clients’ needs whilst providing the candidate experience that candidates deserve. My previous success comes down to listening to clients and having the ability to unearth talent through a search-led approach (without the upfront fee!) and having the resources and skills to attract the best possible calibre. Being my own boss enables me to truly focus on each talent project without any interruptions and work closely with the hiring and talent managers in a consultative and collaborative style. My recruitment passion is making a difference to peoples’ lives whilst progressing their careers and helping businesses grow by delivering the level of talent, they need to achieve their own goals and ambitions. I absorb as much joy out of placing a fresh FMCG graduate in their first role that gets them on the ladder as I do when placing a $250k Sales/ Marketing Director – that fist bump still has the same amount of oomph!

Craig Henson, Owner

Get in touch with me to discuss how becoming a business partner can add real value to your business. Follow us on ph 027 244 2242 / craig@hensonrec.co.nz / www.hensonrec.co.nz FMCG BUSINESS - MARCH 2022

[ innovation ]

NEW PREMIUM KETO BREAKFAST CEREAL

CT OF TH ODU EY PR E

PRODUCT OF THE YEAR CG

• AR

FI NAL I ST

•F M

ODUCT OF THE PR YE

*ROS in top 20 FS stores.

•

“For breakfast or as a snack on its own, it’s the perfect accompaniment to anyone’s day,” says Baragwanath. Visit https://bluefrogbreakfast.co.nz for more information.

•F M

“KIWI COMPANY BLUE FROG, WHICH GREW MORE THAN 50% LAST YEAR, IS INTRODUCING A NEW KETO ALMOND, PEANUT AND RASPBERRY BREAKFAST CEREAL” AR

The first finalist for the FMCG BUSINESS Product of the Year Award 2022 is a local innovation in the Breakfast Food category, which stands out with top notch ingredients. Kiwi company Blue Frog, which grew more than 50% last year, is introducing a new Keto Almond, Peanut and Raspberry breakfast cereal – with 88% nuts and seeds, just 0.9gm sugar per serve, 4gms of carbohydrate per serve AND it’s grain free and gluten free. Founder Scotty Baragwanath told FMCG Business: “This is undoubtedly putting our best foot forward, basing the recipe on our winning Macadamia recipe that’s the number one selling super premium cereal after just one year*. We’ve roasted our peanuts not once, but twice, and added crunchy almonds and all manner of crispy seeds. With a sprinkling of the best freeze-dried, New Zealand grown raspberries from our friends at Little Beauties in Nelson and a generous splash of pure Heilala Vanilla, you’ll be hard pressed not to fall in love.

UCT OF THE OD YE PR A

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

•

•F M C

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

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

PRODUCT OF THE YEAR

•F M C

•

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 36

FMCG BUSINESS - MARCH 2022

[ profile ]

DEEP SOUTH ONFIRE!

In 2020, the Deep South brand was brought under the wing of another icon from the South Island, Talley’s. Recognising the popularity and quality of its ice cream made the purchase of Deep South a no brainer, but the brand was overdue for a packaging refresh. The work completed by Sam Allan and the Onfire Design team demonstrates the potential that can be unleashed. Featuring refreshed livery, the packaging maintains provenance and pride in the South Island with a stylised representation of the region’s iconic mountains. Split into premium and mainstream offerings to help

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

broaden appeal across different price points, the new designs honour the brand’s past and deliver on the promise of delicious and adventurous flavour profiles. (Slime Lime anyone?) Established in New Zealand’s South Island in 1978, Deep South ice cream is known for its comprehensive range of flavours and styles of which everybody has at least one favourite. With a helping hand from Onfire, Deep South will continue to delight the palates of New Zealand consumers with a combination of traditional and unique flavour profiles. Who says fire and ice don’t mix! Visit www.weareonfire.co.nz.

MIND YOUR GAPS Notes from the retail front line

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

1 38

One of the things that makes life interesting are the gaps we all have between what we feel we should do and what we actually do. These are our Life Gaps; the space in-between staying out or going home early, the burger or the salad, the savings or the new shoes, the gym or the pub, giving up smoking or justifying a few, sticking to your budget or blowing it. It is like we live with little angel on one shoulder and a little devil on the other. Moderating life and keeping these two conscience buddies under control is of course up to each of us. This can be a challenging job at the best of times. We all know what we ‘should’ do most of the time. Our parents told us, the doctor reminds us, social messages fill our feeds with idealized images of how life should be thanks to the Jones’ next door or influencerwashed selfies. The virtues, the must-dos, the if you know what’s good for you, the right sort of diet, and the right shade of beige for the lounge. This is the cold light of reason that points us in the direction, helps us

lose weight and keeps us living within our means. But the other little one we live with doesn’t care about all that. Exploiting our impulsive, live for now rather than tomorrow thinking we can easily find ourselves taking the day off the gym, having that extra glass of wine, the odd social smoke, worrying about the money later, and not caring about not getting around to it. Every now and then we need to balance these books and reconcile the gaps between how we know we should live and how we actually live. We sit down in the cold light of day and reframe how we plan life. We work out a budget, we commit to a diet, we vow to give up vices, we promise to tidy ourselves up. There are key reconciliation times when this happens. January is the big planning month when the coming year is discussed and resolutions made. Monday mornings bring a spike in enquires about diet plans, gym memberships, insurance and mortgage refinancing appointments. The result of weekend reflection.

Are you team Id tempting people to be naughty and live for the moment by appealing to the child in the adult?

FMCG BUSINESS - MARCH 2022

[ marketing ]

Are you the authoritative parent telling people how they should behave?

r are you the accomplice who helps people enjoy O their desires in an acceptable form?

Are you the fellow adult sharing the experience in an empathetic way?

Support for managing our life gaps is abundant. There are billiondollar industries trying to push us into temptation’s way every day and beacons of virtue we can call upon to rescue our wellbeing, our busted credit cards and our saggy waistlines. The human nature in us tends to err towards low effort solutions to complex problems. We love quick fixes, simple solutions, instant results, and proven plans. We easily relate to well-packaged 5-day programmes, handy apps, or the encouraging endorsement of fabulous people we would like to be like. For marketers, the big question is: “whose side is your brand on?”

“THE HUMAN NATURE IN US TENDS TO ERR TOWARDS LOW EFFORT SOLUTIONS TO COMPLEX PROBLEMS.” 1. Are you team Id tempting people to be naughty and live for the moment by appealing to the child in the adult? 2. Are you the authoritative parent telling people how they should behave? 3. Are you the fellow adult sharing the experience in an empathetic way? 4. Or are you the accomplice who helps people enjoy their desires in an acceptable form? Thinking about your business in terms of Life Gaps is a way of being more customer-centred. It begs the question of what your brand does for people and why should they reach for you instead of something else? FMCG BUSINESS - MARCH 2022

[ FGC ]

TURNING FLASHBACKS INTO NIGHTMARES

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

food& grocery COUNCIL NEW ZEALAND

My first real job was as a cadet with the Ministry of Agriculture. At the time, one of the most powerful roles in the building was the “Keeper of the Stationery Cupboard” – the person who determined how many pads and pens you were allowed, which all had to be authorised and signed out. I recall being told by one senior colleague that in the early days of ballpoint pens, staff had to return the used pen as proof the ink had been exhausted before being authorised to have another. The Government’s Rapid Antigen Test distribution system has been giving me these public service flashbacks. Whoever thought it was a good idea to issue RAT kits worker by worker, one by one, instead of dispatching them to businesses clearly has never designed an efficient supply chain. In fact, the process could not be more complicated. So how does it work for businesses dealing with Omicron? At the time of writing there were eight hurdles workers had to jump over to get a RAT kit. First, they have to find the order form. When I tested the system and followed Critical Worker Guidance that said “access the Rapid Antigen Test Order Form on the Ministry of Health website”, a search came up with “Sorry, your search has found no results”. This does not bode well, particularly

FMCG BUSINESS - MARCH 2022

for workers doing this via the small screen on their mobile phone because they don’t have desktops. From their employer they have to get “a Critical Services Register Letter”. In the era of electronic processing, this is an old-school physical letter on company letterhead. They then have to secure a “Critical Worker Authorisation Letter”. It wasn’t immediately clear what this was because it was taking days for many businesses to receive confirmation of their status. Finally, they’re required to gather their Workplace ID (if they’ve got one), personal ID, an official text message from the Ministry of Health confirming they’re a close contact, and their RAT order number. The requirement for the text is problematic. Throughout the pandemic, many Food & Grocery Council companies determining close contacts have waited days to hear from Public Health. If there are delays dealing with small numbers of cases, does anyone believe response times are going to improve when Omicron is endemic? Kit pickup points could also be a problem for those who don’t have their own transport. As a member in East Tamaki pointed out, their workers will have to travel to Otara (4km), the airport (17km), or Balmoral (18km) to pick up kits. And the pickup points close at 4pm. As one member pointed out, even banks have longer hours! That makes it difficult for workers on, say, a 7am - 7pm shift, four days on, four days off, to pick up a kit – a prime example of how things would be easier if businesses could have kits on site. In Wellington it’s even worse, with pickup points open for only two hours a day. Wouldn’t it make sense for companies to be able to submit documents online and have kits couriered out? And sending workers out all over the place surely increases potential spread. We have argued manufacturers should be able to get kits as the one centralised place so they can take immediate steps and test close contacts. That could save days and keep critical businesses going. Without such changes, the hassle factor could mean many employees will decide isolation is a better option than working. Due to the uncertainty of the system, many companies are continuing to source their own kits, despite the cost. When days lost, transport, uncertainty, and time are taken into account, the “free” kits are costly. It’s a pity business, which deals with logistics every day, wasn’t consulted on any of this. My flashbacks are in danger of turning into a nightmare.

[ legal advice ]

UNFAIR TERMS IN TRADE CONTRACTS Most of you will have heard of or be familiar with the Fair Trading Act 1986 (the FTA). The FTA prohibits unfair contract terms in standard form consumer contracts. From 16 August 2022 this will be extended to standard form business-to-business or small trade contracts. Other changes include a prohibition on unconscionable conduct and restrictions around uninvited direct sales. This article sets out what a standard form small trade contract is, what is considered an unfair term and what businesses should do in anticipation of the changes.

What is an unfair term? A term in a contract may be considered unfair where it causes a significant imbalance between the parties, the term is not reasonably necessary to protect the legitimate interests of the party who would be advantaged by the term or where the term would cause detriment to a party if it was enforced. The Commerce Commission has highlighted certain examples of unfair terms, such as terms which: • allow a supplier to unilaterally change price or terms of the contract • say the contract represents the whole agreement where the supplier has made pre-contractual representations • are not transparent in regards to the contract being automatically renewed.

What is a standard form small trade contract? The Amendment Act says that a small trade contract is a contract between two businesses where the value

of the trading relationship, when it first arises, is not more than $250,000 including GST per annum. A ‘standard form contract’ is one where the terms of the contract have not been subject to effective negotiation between the parties. For example, a contract between a small transport company and a large corporate customer where the contract is drafted by the customer for use as their standard form for all transporters. If a court decides that a term in a standard form small trade contract is unfair, then that unfair contract term must be excluded from the standard form contract.

Preparing The changes will be welcome news for many small businesses who deal with large suppliers or trade customers. An example of a term that we expect small businesses may seek to review under the new law is where the payment term is long, say 60 to 90 days, in a ‘take it or leave it’ contract. On the other hand, the risks of leaving unfair contract terms in your own standard form contracts include negative publicity or damage to trade relationships and having your terms simply being declared unfair and subsequently unenforceable by Court rather than having an opportunity to negotiate or amend the term to what may be considered fair. Businesses which use standard form contracts should take the time now to review their small trade contracts for any unfair contract terms. These could be either as the party which has drafted the contracts or as the party which has had to use the standard form contracts of a larger business customer or supplier.

Aman Prasad is a Solicitor at Steindle Williams Legal specialising in property, business and commercial law. www.swlegal.co.nz

“THE CHANGES WILL BE WELCOME NEWS FOR MANY SMALL BUSINESSES WHO DEAL WITH LARGE SUPPLIERS OR TRADE CUSTOMERS”

FMCG BUSINESS - MARCH 2022

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FMCG BUSINESS - MARCH 2022

[ convenience & impulse retailing ]

A GREENER FUTURE Deb Jackson, Associate Publisher, C&I NZ

Welcome to Convenience & Impulse Retailing New Zealand (C&I NZ), created proudly in partnership with the New Zealand Association of Convenience Stores (NZACS). The impacts of climate change are being felt and seen around the world in devastating measures. We see this currently with our neighbours in Australia experiencing devastating floods in Queensland and northern New South Wales. So, in this issue, it is with great pleasure that we share a special spotlight on sustainability, where we speak to leading FMCG companies about their commitments and how they are working to achieve them. We’d like to thank Simon Lowden, Chief Transformation Officer, Arnott’s, Cameron Davidson, Chief Consumer Officer, Frucor Suntory, Margaret Stuart, Head of Corporate Affairs & Sustainability,

Nestlé, and The Ferrero Group for sharing their goals and achievements with us. Also in this issue, we look at the progress of Ampol’s acquisition of Z Energy and share some insight around the divestment of its 112 Gull service stations. In its full year results, Ampol confirmed there is a “short-listed set of bidders” for Gull and its acquisition of Z Energy is expected to be completed in the first half of 2022. We also speak to Abby Irving, Head of Convenience Retail, Z, about how Z service stations will continue to evolve their retail offer in 2022. We hope you enjoy reading this issue as much as we enjoyed putting it together for you. Until next time, Deb Jackson

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[ convenience & impulse retailing ]

AMPOL CONFIRMS “SHORT-LISTED SET OF BIDDERS” FOR GULL As a condition of its acquisition of Z Energy, Australia’s Ampol must divest its 112 Gull service stations. Meanwhile, Ampol recorded earnings of $631.2 million in the year to December 2021, representing a 57 per cent increase on the previous year and the highest since 2018. The strong results, reported in Ampol’s 2021 Annual Report, included a record total sales volume of 22.04 billion litres and strong international growth including the proposed acquisition of New Zealand’s Z Energy, which owns and operates more than 300 fuel stations across the country. Matt Halliday, Managing Director and CEO of Ampol Australia, said 2021 was a successful and transformational year for Ampol. “Our strong financial performance reflects the ability of our people to thrive under challenging conditions and demonstrates how our business can respond to the market recovery.”

In its full year results, Ampol confirmed there is a “short-listed set of bidders” for Gull and its acquisition of Z Energy is expected to be completed in the first half of 2022. Since making the A$1.9bn buyout proposal for Z Energy last year, Ampol put its 112 Gull service stations on the market through Macquarie Capital to appease the New Zealand Commerce Commission (NZCC). The bidders for Gull are reported by The Australian to be oil traders like Vitol, PetroChina, and Trafigura, as well as private equity firms such as Kohlberg Kravis Roberts. In its 2021 Full Year Results Presentation, Ampol said that the transaction is subject to the approval of the NZCC and Overseas Investment Office. The NZCC would not allow Ampol to own both Z Energy as well as Gull and raised concerns over Ampol’s consideration of an IPO option in which Ampol could remain a major shareholder. “If successful, the combination of Ampol and Z Energy would create the largest fuels distribution and retail network across Australia and New Zealand,” stated the presentation. Ampol’s Gull NZ has 112 retail sites, including 88 controlled retail sites (77 unmanned stations) and 24 supply sites, with an estimated evaluation of A$562 million. The presentation reported that the Gull business performed well during the year, despite the continued impacts of COVID-19 travel restrictions, adding nine new sites to its network.

“IF SUCCESSFUL, THE COMBINATION OF AMPOL AND Z ENERGY WOULD CREATE THE LARGEST FUELS DISTRIBUTION AND RETAIL NETWORK ACROSS AUSTRALIA AND NEW ZEALAND.” – AMPOL

FMCG BUSINESS - MARCH 2022

[ convenience & impulse retailing ]

RETAIL SPOTLIGHT: Z SERVICE STATIONS

Pre-ordering coffee through the Z App has grown by 25% from the same time a year ago

Z service stations will continue to evolve in 2022 with an updated design, layout, and food and beverage offering. Since rebranding from Shell to Z Energy in 2011, Z service stations has been evolving its in-store cafe offer, Z Espress, to cater to the changing needs of consumers across New Zealand. There are 197 Z service stations across the country, spread throughout towns, cities, and state highways. They are conveniently located within local communities and provide consumers the ability to park on-site, offering the option to both re-fuel their cars and themselves at the same location. Abby Irving, Head of Convenience Retail at Z, said since Covid they are seeing more of their customers ‘living local’. “Communities have become increasingly important since the

pandemic began, given people were unable to leave them for relatively long periods of time during lockdowns. The role of Z’s retail network in particular became much more important for neighborhoods and communities as a safe, convenient way to buy food, coffee and household

“WE ARE CONTINUING TO LOOK AT WAYS FOR HOW WE CAN USE INNOVATIVE TECHNOLOGY TO ENHANCE THE CUSTOMER EXPERIENCE, INCLUDING FOR OUR RETAIL OFFERING.” – ABBY IRVING, HEAD OF CONVENIENCE RETAIL, Z

FMCG BUSINESS - MARCH 2022

[ convenience & impulse retailing ]

Z Espress offers an impressive range of vegan food, sausage rolls, smoothies, and award-winning pies

supplies such as bread and milk without having to confront a socially distanced supermarket.” Irving said they have seen this trend continue as lockdown restrictions have eased and have recorded growth of 17% in food and 12% in coffee sales this year, but a real highlight has been the significant growth in their pre-order coffee through the Z App, which saw a 25% increase from last year. “Through the Z App customers can pre-order coffee and a range of other hot and chilled beverages before approaching a retail site, prepay for it through the app and simply collect and go. While this has been around since 2018, we’ve noticed a greater reluctance from Kiwis to queue since the emergence of Covid and measures such as social distancing. “By listening to what our customers were telling us, we’ve been able to effectively promote our app-based coffee offer. This is proving an increasingly popular offer with sales via the app increasing rapidly. It now accounts for around 20% of our coffee sales.” The fuel offering at Z has also been adapted, with Z building an ecosystem of ways for customers to pay according

to which one suits them best at that time, which includes the pre-order coffee within the Z App. “We are continuing to look at ways for how we can use innovative technology to enhance the customer experience, including for our retail offering.” The Z Espress food offering is also impressive, with a great range of vegan food available, from sausage rolls, smoothies, and awardwinning pies. “We are continuing to develop our food and coffee offering, and are planning to expand our fresh, healthy food range, alongside our existing and much-valued current offer. “Everything on our menu is designed to be enjoyed on the go. Whatever your tastes, there’s sure to be something that will fuel you up and get you going.” In what was an uncertain year, Irving said they are incredibly proud of their retailers and teams who stayed open to fuel the emergency and essential workers, regardless of the Covid alert level restrictions. Z service stations will continue to grow in 2022, with Irving revealing they are currently going through a “refresh” of their sites, working on updating the design, layout, and food and beverage offering. “With fewer people travelling across the country and no international tourists, our highway sites have been impacted since the emergence of Covid. While this has been something beyond our control, we have taken the opportunity to prioritise some of these sites as we begin our refresh of the next generation retail stores. This will mean they are ready with a new layout and design to welcome customers back as restrictions ease.”

“EVERYTHING ON OUR MENU IS DESIGNED TO BE ENJOYED ON THE GO. WHATEVER YOUR TASTES, THERE’S SURE TO BE SOMETHING THAT WILL FUEL YOU UP AND GET YOU GOING.” – ABBY IRVING, HEAD OF CONVENIENCE RETAIL, Z

FMCG BUSINESS - MARCH 2022

A GREENER

FUTURE Sustainability becomes a growing priority for companies, writes Thomas Oakley-Newell. The impacts of climate change are being felt and seen around the world in devastating measures, from droughts in Europe to bushfires and floods in Australia. With concern growing about how to not only manage, but prevent, these catastrophes, companies are under increasing pressure to reduce their impact towards climate change. To do this, businesses must first measure their current environmental footprint, including the amount of greenhouse and carbon dioxide emissions they are responsible for, then identify a solution that reduces this impact but also does not considerably damage their bottom line. This is not an easy process. But it is an important one. Only a handful of countries in the world have not committed to a Net Zero target before 2050. Australia has only just done so. Despite lagging as a nation, many companies operating within Australia and also New Zealand have committed to a sustainability target. Recent research by IRI has identified that55% of people try to buy environmentally friendly products, and that this trend rings true across all age demographics – from empty nesters to families with young kids through to retired couples. Daniel Bone, Insights Director, IRI, said that the research highlights the need for FMCG retailers and brands to not only understand the complexities and characteristics of a sustainability mindset but also be able to respond through action in a meaningful way to attract a greater share of shoppers spend. “Shoppers have spoken in the strongest possible terms about their views on sustainability – they want to save the planet and feel that they can help do this on a daily basis by making informed and proactive purchasing decisions with their food and grocery shopping.”

Setting targets Many FMCG companies have gone public with their sustainability commitments, which predominantly focus on the way they source their ingredients and their production methods. One such company is The Arnott’s Group, which has committed itself to a range of targets including The Arnott’s Group will sustainability 48

FMCG BUSINESS - MARCH 2022

Cameron Davidson, Chief Consumer Officer, Frucor Suntory

Simon Lowden, Chief Transformation Officer, Arnott’s Group

grow and source 100% of its key ingredients by 2035, and reduce, reuse or repurpose plastic packaging across Australia and New Zealand by 10% by 2025. It will also increase choice, opportunity, and wellbeing by promoting inclusion and belonging, supporting communities, and providing diverse food options and guidance on nutrition. Simon Lowden, Chief Transformation Officer, Arnott’s, said the company will be focusing on three key areas, including how ingredients are sourced, how products are made, and how communities are connected. “Our sustainability strategy focuses on the areas where we as a business can have the most meaningful and immediate impact with consideration to our supply chain, our retailers and our consumers.” Frucor Suntory has set five targets to achieve before 2030, they include contributing zero waste to landfill, using 100% recyclable packaging, reducing greenhouse gas (GHG) emissions by 35%, reducing water usage by 20% and that one-in-three drinks sold will contain low or no sugar. Cameron Davidson, Chief Consumer Officer, Frucor Suntory, said that since 2017 they have made great progress across all areas of their sustainability and have implemented several projects that are delivering encouraging results.

[ convenience & impulse retailing ] “We have a comprehensive calendar of activities building on the progress we’ve made so far – specifically a continued focus on developing opportunities and solutions to the issues of packaging and climate change. This involves a shift towards a circular economy, and ongoing efforts to decarbonise our operations.” The Ferrero Group has outlined four key pillars in which they are working towards; protect the environment, source ingredients sustainably, promote responsible consumption and empower people. “One of Ferrero’s ambitious new targets is to significantly reduce the group’s carbon footprint by 2030. These are science-based carbon targets, validated by the Science Based Targets initiative in December 2020, using 2018 as the base year will include reducing absolute Scope One and Two emissions by 50% globally by 2030 and reducing Scope One, Two and Three emissions intensity by 43% per tonne of product produced at a global level,” said a Ferrero Group spokesperson. The first target covers 100% of Scope One and Two emissions for the group’s plants, warehouses and head office. The second target covers the entire value chain. Nestlé is another FMCG company that has set a number of commitments including halving GHG emissions by 2030 and reaching Net Zero by 2050. It also plans on making packaging 100% recyclable or reusable by 2025 and is aiming for 100% certified sustainable cocoa and coffee globally by 2025.

Overcoming challenges Due to many of these sustainability challenges having never been faced before, the methods for achieving these targets are not simple and often involve innovative new technologies and practices, all which costs money. Margaret Stuart, Head of Corporate Affairs & Sustainability, Nestlé,

“OUR SUSTAINABILITY STRATEGY FOCUSES ON THE AREAS WHERE WE AS A BUSINESS CAN HAVE THE MOST MEANINGFUL AND IMMEDIATE IMPACT WITH CONSIDERATION TO OUR SUPPLY CHAIN, OUR RETAILERS AND OUR CONSUMERS.” – SIMON LOWDEN, CHIEF TRANSFORMATION OFFICER, ARNOTT’S GROUP said that despite the obvious costs associated with reaching their sustainability targets, it is imperative they do so. “Achieving our sustainability commitments can’t wait – and neither can we. Globally, we have invested considerably to accelerate our sustainability initiatives across packaging, improving water stewardship, through to regenerative agriculture. These investments are imperative to the long-term success of our business.” Davidson, Frucor Suntory, said it is too early to tell if these new sustainability costs would impact revenue. “There have been costs and savings with rolling out new procedures,

FMCG BUSINESS - MARCH 2022

[ convenience & impulse retailing ]

“ACHIEVING OUR SUSTAINABILITY COMMITMENTS CAN’T WAIT – AND NEITHER CAN WE.” – MARGARET STUART, HEAD OF CORPORATE AFFAIRS & SUSTAINABILITY, NESTLÉ

creating new partnerships and investing in technology to help us meet our sustainability goals. We believe it’s our social responsibility to have a positive impact on the world around us, and we want to make sustainability an easier choice for consumers and commercial partners.” While Lowden, Arnott’s Group, is of the belief that for sustainability to be widely adopted, it must stack up commercially. “Everything that we’re doing in this space, we’re doing innovatively and in collaboration with our partners to identify viable sustainable alternatives.” A less direct challenge is that companies with a heavy reliance on raw materials may see these materials become harder to source as the impact of climate and environmental challenges are felt around the globe. Lowden explained: “We work closely with our supplier network to manage some of these challenges and explore opportunities to engage technological solutions. We also recognise the role that we play in driving the demand for repurposed plastics and enhancing recycling technologies so that as an industry we are better placed to achieve a circular economy for packaging materials.”

Measuring progress Most companies have now set a sustainability target and committed to releasing annual reports detailing their progress and identifying areas for improvement. There are also global initiatives such as the United Nation’s Sustainable Development Goals (SGDs) which is a list of 17 global goals intended to be reached by 2030. 50

FMCG BUSINESS - MARCH 2022

Another recognised metric for measuring progress is the Science Based Target initiative (SBTi), which Ferrero Group and Nestlé are both using. This initiative allows companies to submit their targets for approval and if they are in line with what the latest climate science deemed necessary to meet the goals of the Paris Agreement, they can then communicate those targets publicly and work towards them. Arnott’s Group only released its first public sustainability statement last year, but Lowden said they are working hard to meet and exceed the targets they have set for themselves. “We recognise that as an iconic Australian brand we play a significant role in the Australian food system and as such, have a responsibility to make it more sustainable. To do so, we are focusing our energy on conducting business within the natural boundaries of the planet and placing sustainability at the centre of our business strategy. It is important that as we continue to grow our business, we are shrinking our environmental impact on the planet and supporting the communities in which we operate.” Frucor Suntory has partnered with an independent advisory board to ensure they are on track with their target. “To help us accurately measure our CO2 emissions, we require all suppliers, site managers and manufacturers to provide us with regular internal and external reports. Since 2017, we have been working alongside Toitū Envirocare, who actively – and independently – measure and assess us to make sure we’re making progress towards our CO2 target,” said Davidson. Ferrero Group says that reliability and transparency are critical to ensure sustainability and that by establishing direct long-term commercial relationships with producers and suppliers of raw materials they can make certain to stick to their sustainability targets. “We require all suppliers and collaborators to adhere to our Codes (such as the Code of Business Conduct and Supplier Code) and to comply with our non-negotiable high standards.” Despite Ferrero Group implementing these sustainability measures, they have not seen a drop in revenue, in fact the opposite, ending the 2020 financial year with an increased turnover of 7.8% on the previous year. “Consumers are voting with their wallets so as a company it’s not enough just to sell products. A company needs clear commitments and activities on sustainability.”

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FMCG Business March 2022

Articles inside

CATEGORY INSIGHTS: SAUCES & DRESSINGS

PROFILE: FRUCOR SUNTORY PARTNERS WITH PITA PIT NZ

CATEGORY INSIGHTS: SWEET TREATS

CATEGORY INSIGHTS: NATURAL & NUTRITIOUS

CATEGORY INSIGHTS: RISE & SHINE

NEWS: Countdown Waiata Shores