FMCG Business NOVEMBER-DECEMBER 2023 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

NOVEMBER/DECEMBER 2023 - Volume 10 - No 10

PLUS! BBQS ENTERTAINING HOT n EVENTS n & AWARDS SUSTAINABILITY n PLUS! &LEADERS FORUM nn WHAT’S PACKAGING & DESIGN HEALTH &nWELLNESS n NEW ZEAL AND’S L ARGEST FMCG AUDIENCE

Thank Heavens for Hellers

contents NOVEMBER/DECEMBER 2023

UP FRONT

28 INDUSTRY TRENDS Looking ahead: A year in beer

4 EDITOR’S NOTE

29 SOCIAL MEDIA MARKETING TIPS

6 INDUSTRY NEWS

30 MARKETING Do you prefer your influence natural or virtual?

SPECIAL FEATURES

12 LET’S PARTY Summer BBQs and entertaining 16 SNACK TRENDS 18 SUMMER ESSENTIALS What’s new in health, wellness and personal care

EVENTS 32 SHARED HORIZONS AT THE FGC CONFERENCE

REGULARS 8 BEST IN SEASON Fresh produce update

34 NEW ZEALAND FOOD AWARDS WINNERS REVEALED

9 WHAT’S HOT New products in store 10 FMCG BUSINESS PRODUCT OF THE YEAR 2023

GOOD BUSINESS

36 OUT & ABOUT Share your snaps and be in to win!

CONVENIENCE & IMPULSE RETAILING

20 INDUSTRY NEWS AND INSIGHTS

31 GROCERY INDUSTRY COMPETITION – CHANGE UNDERWAY

22 PROFILE Whakatane Mill completes massive upgrade 24 FOCUS ON SUSTAINABILITY 27 PROFILE The Packaging Forum

38 A ROARING SUCCESS The C&I Expo and Symposium in Sydney, Australia 40 NZACS BREAKFAST HIGHLIGHTS 42 NIGHT ’N DAY CONFERENCE

10 7

FMCG BUSINESS - NOVEMBER/DECEMBER 2023

editorial

Boosting confidence in the economy It’s nearly time to say farewell to another challenging year. Consumer spending has been slow with many households feeling the pinch due to ongoing price increases and high interest rates for mortgages. Shopping in 2023 was all about necessities (and very few luxuries) for a lot of families. The rising cost of living is one of many reasons New Zealanders voted for change in the recent elections. After seeing the very sad demise of online grocery business Supie recently, it’s clear that we need strong, high performance, purpose-driven leadership that offers better support for businesses and especially new entrants in the grocery sector. The shift to a new government might boost confidence in the economy and potentially lead to lower interest rates, which would undoubtedly benefit businesses across the board, says Dylan Firth, Executive Director of the Brewers Association of New Zealand. Dylan shares his industry insights and trend predictions on page 28. In this issue we also bring you new sustainability initiatives, plus highlights from significant events and awards, category insights, social media marketing tips and inspiration for summer BBQs. Yes, it’s finally time to make plans for summer holidays. Our team is taking a break over Christmas, but we’ll be back in January with some exciting innovations and a new bi-monthly publishing schedule. If you’d like to find out more about opportunities across the FMCG Business print, digital and social channels, or want to secure a spot in our popular Leaders Forum edition, please contact Vicky: vbennett@fmcgbusiness.co.nz. We look forward to working with you in 2024. Best wishes from all of us for a wonderful summer and festive season for you and your families. Merry Christmas and happy holidays!

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

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

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

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

ON THE COVER This summer Hellers is set to tantalize our taste buds with exciting new products across a range of categories. Find out more on pg 12-15.

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

FMCG BUSINESS - NOVEMBER/DECEMBER 2023

FMCG Business is audited and verified by ABC. DISCLAIMER This publication is published by C&I Media (NZ) Ltd (the “Publisher”). Materials in this publication have been created by a variety of different entities and, to the extent permitted by law, the Publisher accepts no liability for materials created by others. All materials should be considered protected by New Zealand and international intellectual property laws. Unless you are authorised by law or the copyright owner to do so, you may not copy any of the materials. The mention of a product or service, person or company in this publication does not indicate the Publisher’s endorsement. The views expressed in this publication do not necessarily represent the opinion of the Publisher, its agents, company officers or employees. Any use of the information contained in this publication is at the sole risk of the person using that information. The user should make independent enquiries as to the accuracy of the information before relying on that information. All express or implied terms, conditions, warranties, statements, assurances and representations in relation to the Publisher, its publications and its services are expressly excluded. To the extent permitted by law, the Publisher will not be liable for any damages including special, exemplary, punitive or consequential damages (including but not limited to economic loss or loss of profit or revenue or loss of opportunity) or indirect loss or damage of any kind arising in contract, tort or otherwise, even if advised of the possibility of such loss of profits or damages. While we use our best endeavours to ensure accuracy of the materials we create, to the extent permitted by law, the Publisher excludes all liability for loss resulting from any inaccuracies or false or misleading statements that may appear in this publication. Copyright © 2023 - C&I Media (NZ) Ltd

Drop Events Centre, 24-25 July 2024 | Due Auckland

Exhibiting at C&I NZ EXPO gives you a presence at the only FMCG event that delivers: A trade show purely focused on Convenience & Impulse and Independent Grocery Retailing Access to motivated high-quality buyers Exposure for independent operators who may not be receiving adequate representation The opportunity to meet reps from corporate and independent chains

C&I NZ EXPO is devoted specifically to the needs of convenience retail owners and operators, where retailers and suppliers will gather for two days of information sharing, education, discovery, and networking. If you are, or hope to be, a convenience supplier then you want to talk to our audience of: service stations convenience stores/dairies/corner stores newsagents

mini marts independent grocery take-aways/hospitality venues

To secure your stand for the trade event of 2024 Email: exhibition@candiexpo.co.nz | Call: +61 2 8586 6172

candiexpo.co.nz

news

New FreshChoice store for Papakura Savvy shoppers in Papakura have enthusiasm will continue to shine as likely observed a noteworthy brightly as ever,” Kuldeep said. transformation in their local grocery General Manager Franchise, Tim store. As part of an ongoing Cartwright commented: “We currently commitment to delivering superior have 46 well-established FreshChoice value, product diversity, and great stores and are progressing with selection to customers, Papakura’s converting the remaining 27 SuperValue store has proudly evolved SuperValue stores into FreshChoice. into FreshChoice. With an ambitious network expansion Owners Kuldeep and Shital Patel plan, we plan to expand our share their motivation behind this FreshChoice supermarket chain to transition. “Our goal is to provide 200 stores by 2034, ensuring greater our loyal customers with an efficient convenience and choice for Kiwis”. The FreshChoice Papakura team shopping experience and top-tier “We embrace our distinctiveness,” product quality. The transition to FreshChoice perfectly aligns us with Cartwright continues, “and Papakura’s transition to FreshChoice other franchise stores. It enables us to provide many advantages, exemplifies our commitment to offering the local community a unique including an enhanced fresh food and grocery assortment, new and and innovative shopping experience that blends the best of ‘fresh’ efficient checkouts, and an expanded product range presented in an with ‘local’.” appealing new ambiance,” said Kuldeep Patel. Woolworths New Zealand, the parent company of Countdown “This rebranding exemplifies our dedication to providing efficient and Woolworths supermarkets, operates as the franchisor of 72 service, premium-quality products, and a vibrant, locally inspired independent supermarkets. The current consolidation process shopping atmosphere. We eagerly look forward to becoming a integrates SuperValue and FreshChoice under the unified cornerstone of the Papakura community, where our commitment and FreshChoice banner.

NZ Dispute Resolution Centre appointed Following a tender process run by the Ministry of Business, Innovation & Employment, the Minister of Commerce and Consumer Affairs has approved the New Zealand Dispute Resolution Centre Limited (NZDRC) to deliver a dispute resolution scheme for the grocery industry (the approved scheme) under the Grocery Industry Competition Act 2023 (the Act). The approved scheme will have jurisdiction to resolve disputes up to $5 million between regulated grocery retailers (currently Foodstuffs North Island Limited, Foodstuffs South Island Limited and Woolworths New Zealand Limited) and suppliers in relation to the grocery supply code or between regulated grocery retailers and wholesale customers in relation to the wholesale access regime under the Act. All regulated grocery retailers must comply with the rules of the approved scheme. Under the Act, before NZDRC can issue the rules of the approved scheme, the rules need to be approved by the Minister of Commerce and Consumer Affairs. The Minister may approve the rules only after they have consulted with the Commerce Commission and if satisfied that the persons or the representatives of the persons that the Minister considers will be substantially affected by the approved scheme (relevant stakeholders) have been consulted. The consultation page will be housed on the NZDRC website: www.nzdrc.co.nz/grocery-dispute-resolution-consultation NZDRC will undertake the consultation on its proposed rules with relevant stakeholders before applying to the Minister to approve

the rules. The consultation is expected to begin around the end of November and the period for making submissions will make allowance for the Xmas/New Year period. John Green, Director of the NZDRC commented: “We are delighted to be working with the Minister of Commerce and Consumer Affairs and the inaugural Grocery Commissioner, Pierre van Heerden, to address an area that affects every New Zealander. We are looking forward to consulting with key stakeholders to ensure that they have full opportunity to review the Scheme’s proposed rules. “The New Zealand Dispute Resolution Centre is the leading provider of commercial dispute resolution services in Aotearoa New Zealand. We have over 30 years’ experience designing and delivering dispute resolution processes and services as an alternative to court proceedings.”

FOR MORE INDUSTRY NEWS FOLLOW US ON

CHECK OUT WWW.FMCGBUSINESS.CO.NZ

FMCG BUSINESS - NOVEMBER/DECEMBER 2023

news

Next level online shopping with Direct to Boot service Woolworths New Zealand has announced a new grocery Pick Up service that promises to save shoppers time by having their groceries loaded directly into their boot. Direct to Boot is a free service that will roll out across the country to selected stores in coming months and offers the ultimate convenient pick-up option for online customers. There’s no need to get out of the car - customers simply pull up, let the team know they’ve arrived and a team member will load their groceries into the boot. Direct to Boot has a minimum order requirement of $50. Customer feedback during the trial of the service has been positive with over 50% of pick-up customers in the trial already opting to use Direct to Boot for their orders. Woolworths New Zealand’s Director of Digital, Mark Wolfenden says the retailer’s ambition is to offer the best possible online shopping experience in the country, especially as it transforms from Countdown to Woolworths Supermarkets NZ, and Direct to Boot is another key milestone on that journey to offer great value to customers. “We’ve been offering online shopping since 1996 and it’s essential that we keep disrupting ourselves by bringing in new, innovative options for customers.

“During our Direct to Boot trial, we’ve heard really fantastic feedback from some of our older customers and also those with young families who all find Direct to Boot incredibly convenient for their lifestyles. “We’re excited to get started with 23 stores featuring Direct to Boot, and we’ve got some big plans for expansion. Our current ambition is to spread the service further across the country and have it live in 42 of our stores by February,” says Mark.

profile

Let’s make this summer one to remember! Think back to the last time you enjoyed the sun’s warmth at the beach, lake, or poolside, simply revelling in the moment. Well, that time is back again – it’s SUMMER! The season of sunshine, joyful moments, festivals, outdoor music, community gatherings, sports under the sun, and refreshing days spent by the lake or beach. It’s the season that Zephyr was born for – to provide you with the perfect cover as you embark on your adventures across Aotearoa. This year, summer is going to be a little different from the previous one, people have embraced travel again and are keen to get out and about, making up for the last few years of missed adventures. The best protection whilst on the ultimate Kiwi tiki tour comes from Zephyr, offering both UV400 sunglasses and glare blocking polarised sunglasses. UV400 sunglasses block the damaging UVA and UVB light to ensure you are protected while outside. Polarised sunglasses offer glare block and UV protection with a focus on ensure glare is removed to make the most of time near the water or anywhere else that is notorious for glare.

We will be directing people to avoid the hassle of driving around the mall parking lot (yes, Christmas shopping has already begun for some), and let us guide you and thousands of others to your nearby convenience store, where you can shop for the hottest trends together. Our The GREAT KIWI TIKI TOUR campaigns are running strong on social media and Google Display, urging everyone to visit your sites, grab a selection of Zephyr Hats and Sunglasses and get out and adventure. Beyond being colourful, fashionable, and exciting, we also understand the importance of reliability under the scorching Kiwi sun. That’s why our sunglasses are meticulously crafted and independently tested to meet the Australian and New Zealand Standard AS/NZS 1067.1:2016. Are you ready to make the most of this summer season? Do you want to boost your sales? Rest assured, we’ve got you covered. Visit https://signaturenz.com or reach out to sales@signaturenz.com to explore our fantastic range.

FMCG BUSINESS - NOVEMBER/DECEMBER 2023

fresh produce

Best in season As summer approaches, retailers are gearing up to showcase a visually appealing assortment of strawberries, blueberries and cherries. Other summerfruit including apricots, nectarines, peaches and plums arrive as we move into summer, as well as Valencia oranges, sweetcorn and a consumer favourite, watermelons.

Strawberries Strawberries are at their peak from midNovember to early December. With high customer demand during this time, it’s crucial to maintain a fresh and ample supply, especially during the build up to Christmas. What to look for: Strawberries do not ripen after they have been picked, so look for bright red fruit with fresh green tops. Storage/handling: Strawberries should be displayed in refrigerated sections or the stock turned over regularly. Avoid stacking too many strawberry punnets on top of each other and remove any stock showing signs of deterioration. Nutrition: Strawberries are a source of dietary fibre which is good for digestive health.

Berries New Zealand is known for producing high-quality berries, including raspberries, blueberries and blackberries with a season that runs from November to March. What to look for: When choosing berries, look for brightly coloured, plump, firm fruit with no signs of mould or moisture, Storage/handling: Berries will only ripen before they are picked, so ensure the stock you have is ready-to-eat. All berry supplies should be stored and displayed under refrigeration at 0 - 2°C. Nutrition: Berries contain antioxidants that may help protect our bodies from disease as we age.

Cherries The cherry season in New Zealand is relatively short, running from November to early February. This limited availability adds to their allure and makes them a sought-after treat. What to look for: Customers will be looking for plump, glossy fruit with vibrant colouration, smooth skin and fresh green stems. Storage/handling: Cherries require careful handling to prevent bruising. Fruit should be stored at 4°C before being displayed on the shelves. Stock rotation is crucial. Nutrition: Cherries are a good source of vitamin C, which supports immunity.

from snacking-sized to larger, flavoursome ones. Effective merchandising can entice consumers to purchase multiple pack types and varieties that cater to different culinary needs. What to look for: Choose plump, heavy tomatoes with smooth skins, deep, even colour and no blemishes to signify ripeness and flavour. Storage/handling: Handle tomatoes with care and refrain from stacking them more than two layers deep as tomatoes are easily susceptible to bruising. Avoid refrigeration to ensure optimal flavour and remove any stock showing signs of softening or wrinkling. Nutrition: Tomatoes are a source of vitamin A, which is important for eye health.

Potatoes Rīwai or potatoes remain one of the most popular vegetables in households due to their nutritional value, cost-effectiveness and availability. November traditionally heralds the arrival of new potatoes, known for their thinner, flakier skins and making them a BBQ favourite with shoppers. What to look for: Choose potatoes that are firm to touch without cuts, bruises or sprouting. Storage/handling: Potatoes should be stored in a cool, dark, dry and well-ventilated place, ideally at around 7°C to avoid sprouting. Potatoes bruise easily so handle them as little as possible. Nutrition: Potatoes are a good source of vitamin C and contain a variety of other nutrients such as B vitamins that support overall health.

Join us on

Tomatoes With over 20 different varieties available, shoppers can choose from a diverse range of tomatoes, 8

FMCG BUSINESS - NOVEMBER/DECEMBER 2023

www.unitedfresh.co.nz

s ’ t a Wh Introducing Raglan Food Co’s Snackable Range!

The Only Gingerbread You Need This Season Crafted with premium ingredients, Lewis Road Creamery’s new Gingerbread Ice cream features a velvety gingerbread-flavoured base, swirled with a ribbon of spiced ginger sauce and studded with generous chunks of ginger biscuit pieces. Savour it on its own, or pair with your favourite dessert, either way you’ll be craving more. lewisroadcreamery.co.nz hello@lewisroadcreamery.co.nz 0508 666 269

After years of requests for a single-serve pack size of their delicious coconut yoghurt, the Raglan Food Co team has launched their 150g Snackable Range in six different flavours (all equally delicious!). They come in an FSC-Certified paperboard cup, making them perfect for lunch boxes, after dinner treats, and on-the-go goodness. For order enquiries, reach out to your local College Hill rep or via the below: raglanfoodco.com orders@raglanfoodco.com 0273 895 802

Whittaker’s New Candy Cane Block Whittaker’s new limited edition Candy Cane 250g Block is the perfect way to get in the Christmas spirit this year. Crafted using its classic 33% Five Roll Refined Creamy Milk chocolate with generous peppermint candy cane pieces throughout, it comes in bright and colourful packaging with a gift label on the front to include a personal message. www.whittakers.co.nz

An Innovative Twist on Mixed Berries Nibblish has introduced an innovative twist to the classic frozen mixed berries. Instead these mixed berries are gently baked, offering a fresh and exciting way to savour the natural flavours of strawberries, cranberries, blueberries, and blackcurrants. Like all their fruit there are no added sugars or chemicals. A convenient and unique product that doesn’t compromise on taste. For sales enquiries contact: tom@nibblish.co.nz www.nibblish.co.nz

Introducing Red Bull Apricot Edition Sugarfree Red Bull has unveiled its latest edition: Red Bull Apricot Edition Sugarfree – the perfect companion for all your favourite activities. The new edition is full of wiiings with no sugar offering the perfect blend of apricot and strawberry with a touch of peach. 250ml cans and 4-packs are now available at participating locations across the country. Email customerservice.nz@redbull.com or visit https://www.redbull.com/nz-en/

FMCG BUSINESS - NOVEMBER/DECEMBER 2023

innovation

FMCG BUSINESS

Product Of The Year 2023 The winner of the 2023 FMCG Business Product of the Year award is Angel Bay Gourmet Veggie Burger Patties! “We received many innovative and exciting entries for the FMCG Business Product of The Year Award, but Angel Bay Gourmet Veggie Burger Patties stood out and ticked quite a few boxes,” says FMCG Business Head of Content Tamara Rubanowski. “Perfect for various occasions from summer entertaining to family dinners, the judges said the Veggie Burger Patties are tasty, convenient and a healthy burger alternative that is glutenfree and vegetarian-friendly too. “It’s great to see Angel Bay’s plant-based innovation, which is right on trend.” Made in New Zealand, this Veggie Burger is suitable for vegans and is easy to cook from frozen in under 20 minutes in the oven, air fryer or frypan. The key ingredients are Edamame soybeans, chickpeas, quinoa, cauliflower, spinach, and mushrooms. The new Veggie Burger is gluten, dairy and egg free, and has a whopping 7g of protein in each patty. Each pack contains six 100g burger patties. Look out for it in the freezer section at the supermarket. Congratulations to the ANZCO Foods Angel Bay team in Christchurch!

UCT OF THE OD YE PR A

PRODUCT OF THE YEAR

•F M C

•

•F M C

“Angel Bay Gourmet Veggie Burger Patties stood out”

The ANZCO Foods team with their award

Do you have a Hero product that stands out from the crowd? If there’s a tasty tastebud teaser, NPD rockstar, or best seller in your portfolio that deserves to be crowned ‘Product Of The Year’ we’d love to hear from you! We’ll showcase some of the finalists in upcoming issues and reveal the FMCG Business Product of the Year later in 2024.

UCT OF THE OD YE PR A

To find out more on how to enter please email: trubanowski@fmcgbusiness.co.nz 10

FMCG BUSINESS - NOVEMBER/DECEMBER 2023

S R E N N I W PROUD OF THE

G C M F 2023 SS E N I S U B T C U D PRO R A E Y E OF TH EG G FREE

Available at all good supermarkets

DAIRY FRE E

GLUT E N FRE E

EVERY DAY DELICIOUS

category insights

Let’s party! Fresh inspiration for BBQs and summer entertaining. From convenient, tasty salads to a great selection of platters made to order and local or international cheeses - summer entertaining is where the delicatessen in store really shines, says Foodstuffs Category Manager Delicatessen & Meal Solutions, Rebecca Tuhakaraina. “Ready-to-heat meal solutions are high in demand. We’ve definitely noticed a lot of recent sales growth of ready-to-heat and ready-to-cook meal solutions. “Our freshly topped instore pizzas are a great option for shoppers looking for a simple, quick and affordable dinner. And the bake-in-tray packaging is a real mess-saver in the kitchen. “Halloumi is in growing demand - a lovely addition to the summer BBQ, or for shoppers looking for less meat in their diet. Fresh mozzarella and bocconcini are also summer faves alongside cow’s milk feta, and we’re also seeing growing demand for sheep and goats milk cheeses for shoppers with specific dietary requirements. “We will continue to develop inhouse products in the meal solutions segment, showcasing great products we make in store, like delicious roasted pork paired up with fresh salad on freshly baked bakery baguette,” says Tuhakaraina. The FMCG Business team has also seen interesting innovations in BBQ burgers recently, including Angus Beef + Pickle Burgers from 12

FMCG BUSINESS - NOVEMBER/DECEMBER 2023

Taranaki’s Green Meadows Beef, tasty plant-based alternatives such as Angel Bay’s Gourmet Veggie Burger Patties, and Hellers new Lone Star Rib Sauce Burger.

Hellers set to sizzle this Summer New Zealand’s cherished tradition of BBQ is undergoing a transformation in response to the evolving dynamics of our work lives. The rise of hybrid working has ushered in a fresh trend, with approximately 30% of all BBQ’s now occurring during the work week1. These mid-week BBQs are becoming increasingly popular, offering Kiwis more opportunities to enjoy the delights of outdoor cooking. This shift in BBQ habits is more than just a fleeting trend; it reflects a broader societal change. With remote work becoming more common, the traditional weekend BBQ has expanded to include weekdays. Whether it’s a Tuesday evening or a Thursday night, Kiwis are firing up the grill and savouring the company of friends and family. We can expect mid-week BBQs to continue growing as our work schedules remain flexible. Marketing Manager Brydon Heller explains: “Hellers shines brightly at mealtimes! Boasting an impressive 89% unprompted brand awareness among Kiwis2, this family trusted brand continues

category insights to dominate categories across butchery. In the realm of pre-cooked flavoured sausages, Hellers is the undisputed champion, commanding an astounding 99% market share and experiencing growth at 17.4%3 (MAT Value). For burgers, Hellers maintains the highest branded product MAT value market share at 23.5%3. In the fresh sausage category, Hellers leads the way with an impressive 31.5% share in a category that’s growing at 10.5%3 (MAT Value).” This summer Hellers is set to tantalize our taste buds with exciting new products across a range of categories. The Hellers Nacho Cheese Sausage is a flavourful innovation that’s sure to be a hit at any BBQ. And their collaboration with Lone Star brings life to the Hellers Lone Star Rib Sauce Burger, which promises to add a mouthwatering twist to our favourite BBQ staples. Hellers has also ventured into a unique partnership with Bluebird, offering Rashuns and Burger Ring flavoured precooked sausages, these promise to excite the kids and adults! The BBQ landscape in New Zealand is evolving, with mid-week gatherings becoming the new norm, and Hellers NZ continuing to hold a special place in our hearts and on our grills. As we savour these delicious innovations, let’s embrace the changing nature of our BBQs, knowing that our love for good food and great company remains unwavering, regardless of the day of the week.

“Hellers has ventured into a unique partnership with Bluebird, offering Rashuns and Burger Ring flavoured precooked sausages”

Source: 1 National BBQ Week, 2023 2 Hellers Foundation Research 2022 3 Circana Scan Data to 31/07/2023

Barker’s Platter Makers – the perfect partner for easy entertaining Barker’s of Geraldine have launched the perfect partner for the upcoming summer entertaining season with their new Platter Makers range. This new range of savoury jams and antipastos have been developed for easy entertaining, whether it’s at home, the beach or BBQ, they’re the perfect addition to a platter or cheese board. Simply, dip, spread, graze and enjoy! The Platter Makers range comes in six delicious flavours to appeal to all tastes: Chilli Jam; Mango, Chilli & Lime Jam; Blackcurrant & Red Onion Jam; Kalamata Olive Antipasto; Roasted Capsicum Antipasto; and Sundried Tomato & Olive Antipasto. All flavours are gluten free, vegan friendly and contain no artificial colours or flavours. Barker’s Platter Makers are widely available nationally across New World and Countdown stores and can be found in either the deli or chutney sections of the supermarket. Barker’s of Geraldine has become an iconic pantry staple and has recently undergone a brand refresh, looking to the future with a focus on appealing to a new generation of Barker’s consumers. The new label design is fresh and colourful, with energy and personality. The Platter Makers is one of the first ranges to hit shelves in this fresh new look, with other categories including spreads, syrups and chutneys to follow in the coming months. However, Barker’s fans can rest assured that the much-loved products and recipes inside remain the same! For more information about the range visit barkers.co.nz. For orders please contact your Twin Agency representative.

FMCG BUSINESS - NOVEMBER/DECEMBER 2023

category insights

Introducing Rum and Que’s flavour fusion - unleash the sizzle!! “We are celebrating the marriage of beer and BBQ with our tantalizing beer-inspired BBQ seasonings,” says Matt Melville from Rum and Que Ltd. “Get ready to elevate your grilling game to new heights!” “At Rum and Que, we believe in the power of perfect pairings, where the bold flavours of beer and the smoky goodness of BBQ collide. Our carefully crafted BBQ seasonings are infused with the essence of popular beer varieties, creating a symphony of flavours that will leave your guests begging for more. “Let the Hazy rub transport you to a citrus-infused paradise, the Porter rub envelop you in rich smoky depths with malty and chocolate notes, and the Shandy rub refresh your palate with its zesty notes. “Expect a sensory feast on our social media platforms, where we’ll share delectable recipes, inspiring grilling tips, and even a few contests! Share with us your own flavour combinations using our rubs.

“All our products are tested in the heat of competition, not only by us, but by a wide range of New Zealand and International teams. “All our products are proudly made and packaged right here in New Zealand,” says Melville. To check out more of our range head to www.rumandque.com or check us out on our social media pages Facebook & Instagram @rumandque.

Ingham’s raises the bar in their barns Ingham’s has become the first and only New Zealand company to be awarded the SPCA Blue Badge for Certified Animal Welfare Standards for barn-raised meat chickens. With their free-range chicken farms already meeting the standard, it means 100% of Ingham’s chicken farms are now SPCA Certified; a first in New Zealand. “Kiwis love their chicken,” says Ingham’s Chief Executive, New Zealand, Ed Alexander. “More than a third of all our meals with meat are chicken. We also know how much Kiwis care about the way animals

“100% of Ingham’s chicken farms are now SPCA Certified; a first in New Zealand.”

FMCG BUSINESS - NOVEMBER/DECEMBER 2023

category insights are farmed in Aotearoa, so this was always an important benchmark for us to reach. Especially to be the first to do so.” “With the Ingham’s brand growing across both the fresh and frozen categories, and their ever-popular chicken nuggets going from strength to strength, the timing is perfect. Value growth for the year to date is up an impressive +31% in the fresh chicken category, +17.6% in the frozen chicken category and +20% in the frozen chicken nugget category.*” “Animal welfare has always been a top priority for us. Our association with SPCA has been our motivation to make the tweaks we needed to – and wanted to. Now we can proudly bear the SPCA Certified Blue Badge on all our chicken meat products which we hope sets a benchmark for the entire industry,” says Alexander. With 175 strenuous standards, the SPCA Certification is no mean feat to achieve. Every Ingham’s chicken farmer needs to meet these measurable, science-based chicken welfare standards to continue supplying products. Ingham’s barn-raised chicken meat products bearing the SPCA Certified blue badge will be available on supermarket shelves from the end of November.

FROZEN MEAT & SNACKS, PREPACKAGED SMALLGOODS Dollars ($M)

Dollars Growth % YA

Total Frozen Meat & Snacks

$499.2

9.3% 9.0%

Frozen Meat

$280.2

Savouries

$144.2

8.5%

Frozen Snacks *

$74.7

12.5%

Total Prepackaged Smallgoods

$538.0

7.0%

Prepack Bacon

$194.7

1.0%

Prepack Sausages

$111.6

14.1%

Prepack Salami

$66.6

10.9%

Prepack Ham *

$63.8

9.5%

Prepack Chicken

$33.2

11.9%

Continental Sausages

$17.7

2.5%

Other Smallgoods *

$50.4

7.5%

* denotes value AND unit growth > +2% Source: Circana MarketEdge Grocery Data MAT to 01/10/2023

*YTD value growth for Fresh Chicken up to 15 October 2023, YTD value growth for Frozen Chicken and Frozen Chicken Nuggets up to 24 September 2023.

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

WE’VE RAISED THE BAR IN THE barn ALL INGHAM’S CHICKEN IS NOW SPCA Certified ®

Kiwis love their chicken and we do too. This is why we’ve raised the bar and become the first and only New Zealand company to be awarded the SPCA Blue Badge for Certified Animal Welfare Standards for barn-raised meat chickens. With our free-range chicken farms already meeting the standard, it means 100% of Ingham’s chicken farms are now SPCA Certified; a first in New Zealand. Stock up on Ingham’s SPCA Certified Chicken to maximise your summer sales.

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category insights

Snack trends Healthy options and ready-to-eat snacks are driving sales.

Natural, healthy and ready-to-eat snacks are trending. Nibblish for example has introduced an innovative mixed berries variant to their snack range. The mixed berries are gently baked, offering a fresh and exciting way to savour the natural flavours of strawberries, cranberries, blueberries, and blackcurrants. Like all Nibblish fruit snacks there are no added sugars or chemicals, offering a convenient product that doesn’t compromise on taste.

Sweet As Popcorn Wilson Consumer Products markets and distributes three market leading brands in the popcorn category: Pop’n’Good and Sweet As (ready-to-eat popcorn) as well as ACT II (microwave popcorn). “Pop’n’Good is the number one ready-to-eat popcorn brand in New Zealand and is popped locally in Te Awamutu,” says Susan Harvey, Marketing and Business Development Manager. Pop’n’Good popcorn is air popped, gluten free and is the perfect little snack for the whole family to enjoy. Harvey explains: “We are pleased to be continuing our support of the Pop’n’Good brand with marketing activities including TV, radio, and events. This year the nation’s favourite Christmas party, Coca‑Cola Christmas in the Park, is on again and Pop’n’Good is proud to be a sponsor of this event. Coca‑Cola Christmas in the Park will take place in Christchurch at Hagley Park on November 25 at 7.30pm, and in Auckland at The Domain on December 9 at 7.30pm. “The Pop’n’Good brand has a strong 27.9% share of the total popcorn market and is growing at 5.9%.” She adds: “Sweet As popcorn, is the number one premium ‘wet-popped’ popcorn brand in New Zealand and is batch made. We are pleased to announce new packaging which features wider 16

FMCG BUSINESS - NOVEMBER/DECEMBER 2023

‘handful friendly’ bags on selected products. We have also made our products easier to fit on shelf by reducing the carton size for selected lines. “Due to overwhelming customer demand, we are delighted to be bringing back our Christmas limited edition Sweet As Gingerbread popcorn again this year – get it while you can! Sweet As has 8.0% share of the total popcorn market and is also growing at +1.2%. “ACT II is the number one microwave popcorn brand in New Zealand which has 29.2% share of the total popcorn market and is growing +16.7% . “ACT II is the perfect companion for watching movies and snacking at home. Nothing beats the taste and experience of making fresh popcorn at home and the aroma of the of fresh hot popcorn,” says Harvey. Circana Pop n Good Popcorn dollar share of total popcorn, dollar growth YA% MAT to 20/8/23. Circana Sweet As dollar share of total popcorn, dollar growth YA% MAT to 20/8/2. Circana Act II dollar share of total popcorn, dollar growth YA% MAT to 20/8/23.

“Sweet As popcorn, is the number one premium ‘wet-popped’ popcorn brand in New Zealand and is batch made.” Susan Harvey, Marketing and Business Development Manager

category insights Global trends to watch An AI-designed protein bar from Jeff Bezos-funded NotCo and a sparkling drink from the founders of Oatly are among the first products testing the waters of the emergent ‘blood sugar-friendly’ trend. Flagged up by consultancy New Nutrition Business in its influential 10 Key Trends 2024 report, the early-days trend is already capturing consumers’ attention, and brands targeting healthier blood sugar as one of their lead benefits are emerging. Promising to “avoid the sugar crash,” NotCo’s snack bar uses plant proteins and Palatinose™, a sugar substitute which helps regulate blood glucose levels. Good Idea sparkling mealtime drink, created by the inventors of Oatly oat drink, offers “balanced blood sugar, backed by science” and can cut post-meal blood sugar spikes up to 20-30% thanks to its amino acid blend and the essential mineral chromium picolinate. Good Idea explains that these “work together for your metabolism which helps to reduce your blood sugar after meals and provide you more stable energy.” “Managing blood glucose levels has long been an area of interest for health active consumers,” says Julian Mellentin, Director of New Nutrition Business. “While people have tended to think of managing blood glucose for diabetes, that is beginning to change, driven by the consumer, by the power of social media and by emerging science.” In a survey of five countries by New Nutrition Business, 21% of consumers said they were trying to eat to manage their blood sugar.

SNACK FOOD Dollars ($M)

Dollars Growth % YA

Total Snacking

$878.2

13.4%

Snack Bars

$229.0

12.3%

Potato Chips *

$228.2

14.9%

Other Chips

$174.8

17.8%

Snacking Nuts

$125.2

5.0%

Corn Chips *

$67.1

14.8%

Popcorn *

$40.9

15.8%

Jerky

$12.9

24.0%

* denotes value AND unit growth > +2% Source: Circana MarketEdge Grocery Data MAT to 01/10/2023

Adding to the trend’s potential is its connection to many of the other powerful consumer growth trends highlighted in 10 Key Trends 2024, including more protein, more fibre, increasing acceptance of more fat, a desire for ‘real foods’, better & fewer carbohydrates, mood & mind and weight wellness. “Health-forward consumers are now beginning to look at blood glucose in relation to multiple health benefits, including weight wellness, better metabolic health, hormonal health and even better mood and mind,” says Mellentin.

snacks

Woolworths waves goodbye to confectionery at the checkout No matter how many sugary treats some shoppers try to dodge at the supermarket, there’s always one last place where they face them: the checkout. Luckily, it won’t have to be that way for long with changes happening at all Woolworths checkouts across the country. As a New Zealand first, Woolworths is removing kids’ confectionery from checkouts and increasing its healthier snack food offering, nudging Kiwis to make healthier choices when they are shopping in-store. About 80% of the snack display area at checkouts will be dedicated to food with a Health Star rating of 3.5 stars or higher – including 19 healthier snack options that are $3 or less. This will include small packs of nuts, dried fruits, crackers etc. The change means that parents can hopefully say goodbye to the ‘tantrums’ and ‘demands’ from their little ones reaching for all the kids confectionery when they are next at the checkout. There will be a small selection of favourite chocolate bars still available at the checkouts, with the full range available in the dedicated confectionery aisle. This change is about making healthier choices on the go easier for everyone, explains the Woolworths team.

Deb Sue, Woolworths NZ Nutritionist

FMCG BUSINESS - NOVEMBER/DECEMBER 2023

category insights

Summer essentials What’s trending in health, wellness and personal care right now?

Global wellness trends are redefining skincare from a cosmetic focus to a health focus and personalisation is becoming the new standard, says Foodstuffs North Island Category Manager Beauty and Personal Care, Rotea Katu-Smythe. “Consumers are being more proactive about wellness with the younger consumer preferring the concept of ‘prevention’ over ‘cure’. “TikTok and ‘skinfluencers’ continue to gain momentum in driving skincare trends. We’re seeing huge demand for ingredient-led skincare such as hyaluronic acid (holding moisture), niacinamide (improved skin health) and retinol (anti-aging), to name a few. “Acne continues to be perceived as a significant health problem. “Globally, acne affects 85% of 16-18 year olds and between the ages of 11-30, more than 80% will develop some acne. “Serums are also exploding in grocery and are our biggest growth segment. They offer a concentrated form of powerhouse ingredients that improve the function of the skin over a much shorter period of time. “And one last trend we’ve noticed is sunscreen as skincare – ‘Skinscreen’ has been re-casted as a beauty must-have, particularly as we head into the sunnier months.”

Foaming hand wash Building upon the success of their innovative concentrated 50ml Cleaning spray refills launched in 2021, ecostore are now expanding their portfolio with a new range of concentrated Foaming Hand Wash refills. Ecostore’s new Foaming Hand Wash comes in two fragrances, indulgent Creamy Coconut with vanilla, and uplifting Citrus Burst with mandarin, orange & lime. Each scent is available in a 250ml pump and a 50ml concentrated refill. 18

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“Formulated to be gentle on skin, the range uses vegan-friendly, plant and mineral-based ingredients.”

health & wellness The new range underscores the brand’s dedication to sustainable practices and achieves an 80% plastic reduction throughout the pump bottle’s life. Pablo Kraus, ecostore’s CEO says: “We’re proud to lead the concentrated refill movement. The simplicity of using a concentrated refill mixed with tap water in the original pump bottle makes so much sense. It reduces packaging, minimises the transport of water-filled containers, and significantly reduces plastic usage.” Ecostore’s new Foaming Hand Wash includes hydrating harakeke, New Zealand flax, which works in a similar way to aloe vera. It creates a gentle lather that cleanses, nourishes, and conditions skin without stripping natural oils. Formulated to be gentle on skin, the range uses vegan-friendly, plant and mineral-based ingredients. Trusted international resources such as the EWG Skin Deep® Cosmetic Database are used to assess the safety of each ingredient. Ecostore’s new Foaming Hand Wash is proudly made in New Zealand to the strictest environmental standards in ecostore’s ISO 14001:2015, Toitu enviromark diamond and Toitu net carbonzero certified factory. Ecostore’s new Foaming Hand Wash range is available now from leading retailers nationwide as well as online at www.ecostore.com.

It’s just Goodbye With 24 years of working in natural outdoor skincare, New Zealand company Goodbye is excited to announce that it is now a certified B Corp. B stands for Benefit for all. As a B Corp, Goodbye is part of a global community of businesses that meet high standards of social and environmental impact. “Today’s consumers have an expectation for businesses to increase transparency and accountability. Being a B Corp is a great way to show that commitment to our customers and community,” says Becky Cashman, Founder of Goodbye. She explains: “Goodbye became a nationwide

supermarket brand with Goodbye SANDFLY in 2010, with just over 2% of the personal repellent market in their first year. Year on year, Goodbye SANDFLY has quietly grown its customer base, increasing market share to 12.1% by dollar of personal repellents (Circana, TKA MAT Mar 2023). “This growth reflects New Zealand’s desire, understanding and diligence for choosing products that are effective, safe and natural.” After 24 years of being Goodbye SANDFLY, it’s now just Goodbye. The re-brand is being led by Creative Jam, incorporating fresh greens and a mountain profile on the label, the customer is invited to a great natural experience outdoors. Over the next year Goodbye OUCH will move through to be Goodbye as well, so that all products sit under a single brand. “Goodbye is NZ made, certified natural, and water-free. The products provide diversity and innovation in traditional skincare categories,” explains Cashman. For more information contact John at sales@goodbye.co.nz

Trends in store Countdown’s Health and Wellbeing Category team told FMCG Business: “We’re excited to be launching Mrykl in New Zealand after it proved incredibly successful in the United Kingdom last Christmas. Myrkl is a unique food supplement that allows you to enjoy your social life without compromising the next day. It’s a unique formula containing high performing bacteria, L-cysteine and Vitamin B12. The formulation is activated in the gut and helps you to wake up refreshed the next day. “More widely, we are expecting to see a spike of cold and flu season in late December - January and we’ve worked hard with our global supply partners to make sure we have plenty of the essential cold and flu supplies for customers.”

FMCG BUSINESS - NOVEMBER/DECEMBER 2023

good business

Proposal: Bring Foodstuffs together as one national co-operative The Boards of Foodstuffs North Island (FSNI) from running two co-ops. Ultimately, this will and Foodstuffs South Island (FSSI) have make us more efficient and able to deliver announced they will be putting a proposal more innovation and better value for New to members to bring the two co-operatives Zealanders,” says Russell McKenzie, Chair together next year as one national coof FSSI. operative. The co-operatives share trusted brands In recommending that a merger be including PAK’nSAVE, New World, Four considered, the Boards have been clear Square, and Gilmours in the North Island, that it must deliver meaningful benefits and PAK’nSAVE, New World, Four Square, for customers and all stakeholders. If the Raeward Fresh, On the Spot, and Trents in merger is approved, the Chair and CEOthe South Island. designates will come from alternate co-ops. “Throughout the Commerce Commission’s FSSI CEO, Mary Devine will continue to Market Study into the retail grocery sector, Russell McKenzie, Chair of Foodstuffs South Island, New World St Martins, lead Foodstuffs South Island through the we were challenged to deliver better value Christchurch owner-operator. merger process but has elected not to be at the checkout. Both our co-operatives have considered for the new co-operative’s CEO accepted that challenge and have been role. The Boards have therefore confirmed that FSSI chair, Russell working more closely than ever on strategic national initiatives that McKenzie will chair the proposed new co-operative’s Board and FSNI improve our efficiency and competitiveness. As one co-operative, we CEO, Chris Quin will assume the role of CEO-designate, once the can do this better and faster,” says Dean Waddell, Chair of FSNI. merger takes effect. Each co-operative will hold a Special General Meeting in June “If the proposed merger proceeds, we’ll continue to be a proudly 2024 where Members will vote on the proposal to merge. The two 100% NZ-owned co-operative with each store owned and operated co-ops are engaging with the Commerce Commission and seeking by a local grocer. Their focus on delivering the best range and value clearance to merge. If the merger is approved, a carefully planned for their customers will not change. transition would take place to fully integrate the co-ops into one. “A nationwide Foodstuffs co-operative will always have significant FGC Chief Executive Raewyn Bleakely commented: “This has been operations and leadership capabilities in Auckland, Wellington and a much talked-about prospect for many years. We note it is for the Christchurch. All supply chain networks serving our members and Commerce Commission to assess robustly, and also that the Boards customers will remain and operate as they do now. of both Foodstuffs North Island and Foodstuffs South Island are clear “What would change is the way we’re governed and operated. the merger ‘must deliver meaningful benefits for customers and all By combining the very best ways of doing things from each coour stakeholders’, and that would be a positive outcome. NZFGC will op and forming one national business, we have an opportunity to canvas the views of our supplier members carefully and participate reduce complexity, duplication and the additional cost that comes actively in the consultation process.”

Fast Facts • 200 Members of Foodstuffs South Island (store owneroperators) • 332 Members of Foodstuffs North Island (store owneroperators) • 2000 Foodstuffs South Island co-operative employees • 2295 Foodstuffs North Island co-operative employees • 3.2 million customer visits in-store and on-line with Foodstuffs brands every week • $9.8b Foodstuffs North Island revenue (FY23) • $3.8b Foodstuffs South Island revenue (FY23)

FMCG BUSINESS - NOVEMBER/DECEMBER 2023

good business

New Four Square for downtown Auckland

Mark Coulston, owner operator of Four Square Britomart

Scooptopia is a collaboration with Kapiti Ice Cream

New Zealand’s newest supermarket, Four Square Britomart, has opened in downtown Auckland bringing a refreshed, ultra-modern store design to a 99-year-old brand while maintaining the classic ‘Cheeky Charlie’ neighbourhood atmosphere. The new store features Four Square’s largest grab-and-go food counter, as well as a quality selection of grocery essentials and fresh favourites, catering to the bustling community of inner-city workers, commuters and residents. Located on the ground floor of the heritage-listed Hayman Kronfeld Building, between Customs St East and Galway St, the 600 sqm store is easily accessible to the corporate lunch crowd, people passing through, or those heading home via the nearby Britomart Train Station, bus or ferry. The new store’s owner operator, Mark Coulston says: “Months of planning have gone into tailoring Four Square Britomart to best serve the needs of our community and I’m sure they’ll be happy with the results.” The store’s modern layout features six aisles, two operator checkouts and eight self check-outs. Customers can buy barista-made Flight Coffee and Daily Bread pastries and enjoy them on the outdoor seating on Galway Street. For those on the go, convenient selections include Dedwood Deli sandwiches, pizza, chicken and chips, fresh YB Sushi and a build-your-own salad bar. The store also has catering options for corporate needs and will offer Uber Eats delivery. Scooptopia is a collaboration with Kāpiti Ice Cream which will run over the summer months, offering customers the chance to indulge in their favourite Kāpiti ice cream, complete with decadent toppings and fresh strawberries drizzled in gooey melted chocolate.

“There’s something here for everyone to enjoy, whether they want super convenient, super indulgent or super healthy – all at affordable prices,” Coulston says. Foodstuffs North Island Chief Executive, Chris Quin says the new Britomart store – the first time a Four Square has opened in downtown Auckland - is an example of how the co-op and its members are constantly investing for its changing communities. “Our co-operative is 100% New Zealand owned and operated, and every year we invest about $100 million into building new stores and redeveloping older stores to ensure Kiwis in every community across the motu have access to fresh food and essentials right on their doorstep.” Four Square Britomart is the 12th new site opened by Foodstuffs North Island in 2023, and the sixth Four Square, following openings in Mount Maunganui in October, Waverley in September, Onehunga in July, Te Kowhai in May and Eden Terrace in January. Each new Four Square has been built to the latest specifications, which Foodstuffs is rolling out nationwide. This new format prioritises fresh produce, technology and competitive prices. “Each store is designed, configured and stocked based on its local community. While the brand experience needs to be consistent across Four Square stores, each location has its own unique needs and customer shopping habits that its local owner caters for,” says Quin. “This latest investment in Four Square Britomart will give inner city customers, including tourists, a friendly and iconic local shopping experience that’s right up there with the best grocery stores in New Zealand and around the world.” Four Square Britomart will be open from 7am to 8pm, seven days a week.

FMCG BUSINESS - NOVEMBER/DECEMBER 2023

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Whakatane Mill completes massive paperboard machine upgrade

Whakatane Mill Limited (WML) has successfully completed a $100m expansion upgrade of its paper machine and associated groundwood plant in Whakatane in the Bay of Plenty. This investment marks the most significant capital expenditure for WML since 2004 and demonstrates a long-term commitment to the paper industry in Australia, New Zealand and internationally. WML is a market leading producer of folding box board for the food and beverage markets. This box board is used as the consumer packaging for items such as cereal boxes, biscuit boxes, multipack soda can packaging and alcoholic beverage cartons. It is highly prized for its smoothness, strength and capability to aesthetically print brand owner graphics and messaging on pack. The Mill sources renewable fibres responsibly and creates fully recyclable products, supported by a local workforce of 185 people. The Whakatane Mill is the only folding box board mill in the Australasian geography. The major works completed include the installation of a state-ofthe-art shoe press and film sizer, a high speed fully automated winder and a robotised packing line, complemented by an extensive renewal of the heat and condensate system. This expansion will deliver a higher yielding, smoother and whiter board product and 50,000 tonnes of additional capacity annually for the folding box board market, giving the Mill an overall annual capacity of 200,000 tonnes.

WML will eliminate circa 200t of plastic by transitioning from plastic to paper wrap for packaging of its finished products. WML’s advancements offer brand owners the opportunity to reduce their carbon footprint and avoid importing packaging from distant locations like Asia, Europe, Nth and Sth America A recent study of the carbon footprint impact on shipping folding box board into the New Zealand market, showed that a tonne of box board shipped from Asia generated 420% more carbon emissions than a comparative box board tonne shipped from the mill in New Zealand. A similar tonne shipped from Chile created 450% more carbon emissions than a New Zealand tonne, whilst product shipped from the USA generated 650% more carbon emissions. Similar carbon footprint savings are available for Australian based food manufacturers and packagers by utilising Whakatane Mill supply. Additionally, there are significant net working capital benefits due to the shorter production lead-times by sourcing from a local mill.

“WML’s advancements offer brand owners the opportunity to reduce their carbon footprint and avoid importing packaging”

Enhanced sustainability Upgrade improvements will deliver per tonne electricity reductions of 30% in the groundwood mill section, while the improved heat recovery system will lead to a 30% reduction in gas consumption. WML’s water consumption from the local river will also see a significant decrease as a result of the recently installed disc filter.

FMCG BUSINESS - NOVEMBER/DECEMBER 2023

State-of-the-art equipment The equipment for the Mill upgrade has been sourced from highly specialised manufacturers in Europe. The core equipment for the board machine, specifically the water removal/drying section, has been imported from Germany, while the fully automated paper wrap line originates from Finland, and the crucial heat recovery system has been acquired from Italy. The Whakatane Mill has a unique place in the paperboard packaging industry as the only box-board manufacturer in Australasia. This local supply capability and intimate knowledge of the Australian and New Zealand market creates a significant local sustainable advantage for local food and beverage manufacturers. For more information visit www.wml.biz

High Quality New Zealand Paperboard

Australasia’s only manufacturer of coated paperboard grades for the packaging market.

WML has a proud history of supporting the local and international packaging industry since 1939. Our unquestioned commitment to quality, safety and the environment underpins our success as a local business. The Formakote product range is perfect for displaying your brand message to your customers. Our board is OBA (optical brightening agent) free, contains no PFAS (per and poly fluoroalkyl substances), and is made with 100% recyclable and renewable virgin fibre. Formakote is a premium board brand and is suitable for all dry and frozen food, dairy, horticulture, pharmaceutical, cosmetics and wet strength beverage applications. FMCG

FMCG

FMCG/Fast Food

Pharmaceutical/Cosmetic

Frozen Food/Horticulture

Beverage/Dairy

For all your paperboard packaging enquiries please contact our experienced sales team Phone 0800 737 331 Email whakatanecustomer.service@wml.biz

Focus on sustainability

Ecostore CEO Pablo Kraus

Demand for more natural, sustainable options is on the rise, brought on by a heightened awareness of environmental and health concerns. Consumers are now more mindful of how their choices impact themselves and the world. Ecostore became a certified B Corp™ in 2021, a certification recognised globally as the highest standard for social corporate responsibility. The company has been at the forefront of the sustainability movement since their inception and are proud of their commitment to ensuring that all ecostore products are gentle on the environment and free from harmful chemicals. Kantar’s 2023 Better Futures Report voted ecostore as Aotearoa’s most sustainable brand, a title they’ve proudly held for 10 years running. To meet customers’ and their own expectations, ecostore are committed to reducing their environmental footprint wherever possible. Ecostore CEO Pablo Kraus explains: “we have developed a range of products that are entirely free from plastic packaging and where plastic is required, our own Plastic Return Programme ensures we take responsibility for recycling these materials.” Over 10 years ago, ecostore’s Auckland manufacturing facility became the first in Australasia to be certified altogether as Toitū net carbonzero, ISO 9001 (Quality Management), ISO 14001:2015 (Environmental 24

FMCG BUSINESS - NOVEMBER/DECEMBER 2023

“We have developed a range of products that are entirely free from plastic packaging” ecostore CEO Pablo Kraus Management), and Toitū enviromark diamond - the highest NZ level of environmental accreditation. Through constantly innovating and building trust over the last 30 years, people know that when they choose ecostore they get a great product, that will be effective and safe, and that the company behind it is striving to do the right thing.

Goodbye is a Good B With 24 years of working in natural outdoor skincare, New Zealand business Goodbye is excited to announce that it is now a certified B Corp. B stands for Benefit for all. As a B Corp, Goodbye is part of a global community of businesses that meet high standards of social and environmental impact.

feature Goodbye Founder Becky Cashman says: “Goodbye encourages people to spend more time outdoors through its certified natural skin care products. We are connected by nature, and becoming a B Corp™ fits our mission beautifully.” To become a Certified B Corporation, companies undergo a rigorous review of the impact of their operations and business model on their workers, customers, communities and environment. “The B Corp certification process gave us a pathway to formalize many of the business processes that we already followed, as well as reach for and build better frameworks,” explains Cashman. Every B Corp is scored using the five impact areas in the B Impact Assessment. These areas are Governance, Environment, Community, Workers and Customers. Cashman says, “our first Business Impact Assessment was done in 2014, so we’ve had the model working in the background for a long time. “By certifying, B Corps step into a framework for continuous improvement. In order to maintain certification, companies must undertake the assessment and verification process every three years, demonstrating they are still meeting B Lab’s standards — which are themselves always improving, with continual input from expert stakeholders. “Today’s consumers have an expectation for businesses to increase transparency and accountability. Being a B Corp is a great way to show that commitment to our customers and community.“ Having tripled in businesses in the past five years, the B Corp network is growing quickly. With over 7600 B Corps in 93 countries and 160 industries worldwide, this movement is a global collaboration with innovative problem solving at its core. There are now about 120 B Corps head-quartered in New Zealand. For more information, visit www.bcorporation.net and https://bcorporation.com.au

Carbon neutral certification for CCEP manufacturing site In a first for the Indo-Pacific region, Coca-Cola Europacific Partners New Zealand’s (CCEP) water bottling facility in Putāruru became one of six CCEP sites globally to achieve internationally recognised PAS2060** carbon neutral certification. This is a step towards CCEP’s ambition to reach net zero emissions by 2040*. This has seen the site more than halve its carbon intensity of every litre of water produced over the past three years, with commitments for further reductions.2 “Achieving the certification is a rigorous three-year process, requiring us to make both demonstrable and practical changes in reducing carbon from all energy consumed on site away from fossil fuels as well as reducing the volume of waste to landfill and wastewater from processing. “Measuring these changes and having independently verified outcomes is a key part of the certification process and our continued emissions reduction progress is externally audited on an annual basis,” says Jenna Pepper, Sustainability Program Manager, CCEP New Zealand. Through these efforts, the site’s market-based scope 2 electricity emissions are now zero and emissions from the water mains have halved since 2019. The site uses 100% certified renewable energy3, validated by New Zealand Renewable Electricity certification and LPG forklifts have been replaced by electric ones. Other key emissions reduction measures included LED lighting supported by timers and motion sensors, and the installation of a wastewater collection unit to recycle the water used in operating the plant, halving the amount of wastewater4. “We have an ambitious goal to reach net zero by 2040 and reduce greenhouse emissions across our entire value chain by 30% by 2030. Receiving the PAS2060 certification for carbon neutrality at the Putāruru site is an important step in our journey towards this goal,” says Pepper.

The water bottling facility in Putāruru became one of six CCEP sites globally to achieve internationally recognised PAS2060** carbon neutral certification.

FMCG BUSINESS - NOVEMBER/DECEMBER 2023

feature While it is in the process of emissions reductions, CCEP NZ has purchased a small amount of Verified Carbon Standard (VCS) - certified carbon credits to offset Putāruru’s remaining emissions in 2021 and 2022, from two different projects; Rimba Raya, Pulau Borneo and Katingan Peatland Restoration Project. “We focus first on reducing emissions as far as possible and will offset where essential,” adds Pepper. “As a leading beverage manufacturer in Aotearoa, we’re committed to understanding and minimising the impacts our operations may have on our environment. As part of this certification process, we’ve partnered with globally recognised non-profit organisations,” says Pepper. ** PAS2060 is an internationally recognised standard for carbon neutral certification. * https://www.cocacolaep.com/sustainability/this-is-forward/forward-on-climate/ 2 Taking Action: Achieving carbon neutral certification for CCEP’s Putāruru manufacturing site – Fig. 3, page 9 3 By adopting Meridian Energy’s 100% Certified Renewable Energy Product 4 Taking Action: Achieving carbon neutral certification for CCEP’s Putāruru manufacturing site – Fig. 1, page 5

100 public EV chargers to be added to NZ network The public EV charging network has received a significant boost with government co-funding announced for over 100 EV chargers – with over 200 charging ports altogether – across New Zealand, and many planned to be up and running on key holiday routes by Christmas this year. Minister of Energy and Resources Dr Megan Woods said the focus is on major highways, throughfares, and places New Zealanders regularly visit while out and about, such as shopping. “Our EV sales keep increasing month on month, so we’re working with the industry to ensure charging capacity grows, and in front of demand,” said Woods. “We have hit the previous EV charging target of one charger each 75km on our State highways, but our new vision is that New Zealanders should be able to charge where and when they need to. The projects that have received co-funding show the full mix of options EV drivers can expect.” EECA (Energy Efficiency and Conservation Authority) research shows that while 80% of people do more than half of their charging at home, Kiwis also need a range of options available to them while out and about, and especially on longer journeys. “New chargers will be situated at places like shopping centres where people may be parked for up to a couple of hours,” said Woods. “To help with longer journeys, the government is co-funding highspeed chargers on main highways at 19 popular holiday routes including Bombay, Turangi and Wanaka. Also included are the country’s first charging ‘hubs’ where up to ten high-speed chargers will sit alongside amenities like food options and toilets.” The government’s draft National EV Charging Strategy – Charging our Future – proposed a target for hubs to be situated about every 150-200km across the State highway network. The announced projects come from three rounds of the Low Emission Transport Fund (LETF), administered by EECA. Altogether, 16 projects will receive $11 million in government co-funding, matched by $13.5 million in private investment. Danusia Wypych, ChargeNet’s CEO, says that when partnering with EECA, ChargeNet leverages data-driven insights and valuable customer feedback to 26

FMCG BUSINESS - NOVEMBER/DECEMBER 2023

“We are excited to bring eight new electric vehicle charging sites across New Zealand’s regional centres. Our focus is on providing fast charging in the right place, at the right time and at the right speed.” strategically invest co-funding into communities that will support current and future EV drivers. “We are excited to bring eight new electric vehicle charging sites across New Zealand’s regional centres. Our focus is on providing fast charging in the right place, at the right time and at the right speed. “The co-funding will support improving charging capacity ahead of the anticipated summer demand and build network coverage in regional areas and holiday hotspots throughout the country.” Kieran Turner, Head of EV Charging, Z Energy, said, “the support will enable Z to deliver more charging bays sooner at key locations for drivers. “This includes the ability to put in more capacity ahead of the curve at some of our busiest locations, as well as plugging some of the gaps on people’s longer journeys. As part of this work, Z is excited to be partnering with Red Phase Technologies to bring innovation to the industry for our larger sites that will reduce the demand on the electricity grid while enhancing the overall customer experience.” Woods said, “The LETF has been a key driver for the development of the public network. The investment will help ensure we are in a good position to reduce emissions from transport. This is critical to hitting New Zealand’s net zero goal and avoiding the worst of climate change. “We are starting to bend the curve on transport emissions; the latest data shows that emissions from household vehicle use fell 2.5% in the December 2022 quarter. We want to not only continue that downward trend but accelerate its pace. We will continue to invest in the infrastructure that can help us get there,” Woods said.

profile

Research and data key to decision making The Packaging Forum, a member-led organisation, has developed and managed voluntary product stewardship schemes for glass packaging, soft plastic, and public place recycling for more than ten years. Most recently it has been leading the co-design of a mandatory Plastic Packaging Product Stewardship Scheme (PPPS). Utilising the latest research and data to support scheme design is imperative, and the project has released two reports summarising the available known data on New Zealand’s plastic packaging flows (Valpak) and research into consumer attitudes to plastic packaging (Kantar) https://ppps.org.nz/research/ Valpak’s research into plastic data flows found that only 17% plastic packaging is recycled in New Zealand compared to an EU average across 27 countries of 40%; and it is estimated that 263,000 tonnes of plastic packaging is placed on the New Zealand market annually. The current capacity for processing plastics in New Zealand is around 37,000 tonnes with a further 16,000 tonnes in the pipeline.

The Kantar research found that the key barrier to recycling plastics is that people are confused by the different types of plastic packaging and what to do about food residue, and that plastics are believed to have the greatest negative impact on the environment. The research supports the Horizon Research finding that 55% people are aware of soft plastic recycling with higher awareness (61% in Auckland and 66% in Wellington) in areas where the Soft Plastic Recycling Scheme (SPRS) is well established. Lyn Mayes, Soft Plastic Recycling Scheme Manager, says: “This research demonstrates that consumers want to be able to recycle with confidence but there is a huge gap in New Zealand’s ability to deliver. Successful industryled, and funded, solutions are critical, and we are proud to have expanded the soft plastic recycling network this year to 290 consumer collection points, providing 84% of Kiwis with access to recycling. Last year we collected 660 tonnes of post-consumer soft plastic, the equivalent of 100 million bags or wrappers, and enough to be made into 67,000 Future Posts.”

industry trends

Looking ahead: A year in beer

Dylan Firth Executive Director Brewers Association of New Zealand

In the beer sector, the days of rapid expansion have slowed, particularly within the craft segment, where the number of breweries has stabilized at around 200. The next 12 months will test the industry’s ability to maintain this figure as shifting consumer preferences become increasingly prevalent. Notably, the low-carb beer category has experienced significant growth, now accounting for approximately 15% of the entire beer market. This shift is primarily driven by healthconscious consumers, and it is expected to continue for the foreseeable future. Furthermore, the 0% alcohol trend, while growing more slowly, remains popular. We anticipate an increase in the availability of new 0% alcohol brands in the coming year with many smaller breweries jumping in with their own spin on the segment. Although the overall growth rate may remain modest, currently hovering at around 2% of the total beer category in New Zealand. In contrast, more developed European markets for low and no alcohol products enjoy a market share ranging from 8% to 10%. Over the past decade, beer production volumes have stagnated, with some growth following the first lockdown in 2020 but subsequent rationalization in the last two years. The recent spike in new migrants, witnessed over the last year and expected to continue, is unlikely to see a substantial increase in consumption, as many of these new migrants hail from countries with lower beer consumption rates. Turning to the regulatory and operational landscape, 2024 is expected to see stubbornly high inflation, which could have a significant impact

on the beer industry. Alcohol excise, linked to the Consumer Price Index (CPI), is set to increase on July 1, potentially exceeding 5% and adding over $20 million in costs to beer producers. The government is also reviewing the alcohol levy paid by brewers and other alcohol producers, after the former Health Promotion Levy (approximately $11 million per annum) was incorporated into the new health authority, suggesting a likely increase. Additionally, there is a looming prospect of mandatory energy labelling on alcoholic beverages (calories/Kilojoules), requiring producers to make label changes at an added cost. However, these changes will likely be phased in over a multi-year transition period. After recent labelling changes, including mandatory pregnancy warning labels, there is hope for a period of relative stability in the labelling regulatory space. As we have seen in recent times, 12 months can bring significant changes for small businesses, and in New Zealand’s brewing industry, 2023 has proven to be no exception. As we peer into 2024, we anticipate that the landscape for breweries will remain challenging as the nation grapples with economic uncertainties. However, there are glimmers of hope on the horizon – an economic focused National led government and recent inflation figures are trending downwards. Such a shift in leadership might boost confidence in the economy and potentially lead to lower interest rates, which would undoubtedly benefit businesses across the board. Overall, the next 12 months may prove to be a challenging period for the beer industry in New Zealand. Smaller breweries are shifting their focus towards direct-to-customer sales via e-commerce and local channels to maximize profit margins. Hopes are pinned on a warm summer in 2023/24 and the potential alleviation of economic pressures in late 2024, which could bring back consumer confidence and encourage greater hospitality spending, particularly during summer beer occasions. A change to a new government might also bolster this optimism, potentially leading to increased economic stability and lower interest rates, further supporting the brewing industry’s recovery.

“Overall, the next 12 months may prove to be a challenging period for the beer industry in New Zealand.” 28

FMCG BUSINESS - NOVEMBER/DECEMBER 2023

marketing

Social media marketing tips Marketers working in the FMCG space face a number of challenges: Generally there is no direct path to purchase, so our marketing efforts are focused on changing consumer buying behaviour at the shelf. So what role could social media play in this consideration change?

Be authentic and human Social media is like a house party, your customers are there to be entertained by people, brands and content creators that have something interesting to say. Don’t be that person who turns up to the party and spends all night talking about yourself. Find ways to have a conversation with your audience through your content.

Edutainment According to We Are Social’s Digital 2023 report1, the number one and two reasons people use social media is to keep in touch with friends and family, and to fill spare time. We’ve seen through the trends that persist on platforms like TikTok that content designed to entertain an audience while also teaching them something they didn’t already know is an effective way to grab attention. Think recipe inspiration videos, educational content about your product vertical, or just making someone smile or laugh. All of these create an emotional response that, repeated enough times, can help drive brand recognition at the store shelf.

User Generated Content (UGC) and Influencer Marketing

almost an hour a day watching TikTok. Consumers, especially the younger ones, are using these platforms as research tools to find products to buy, so if you’re not on there, you’re missing out. Try creating short, engaging, fun videos that tell a story and educate your audience, and keep trying different ideas to see what resonates with them.

Localise content If you are part of a global brand, sometimes global messaging may seem the easier way to go about your content. We’re huge, everyone knows us, right? Not necessarily. While social media is global, people still treat their everyday shop as a very local affair, and brands that can speak their language, even down to a regional level if need be, will help create that engaging connection better than one that uses generic, global messaging.

Have a reason for everything you do Underpinning all of this is the need for a strong strategy. Everything we do on social media should have a reason to exist, because without a strategic goal for what your social media is meant to actually DO, how are we supposed to know if what we’re doing is working. With a clear goal for what our content is for, it also makes it easier to decide what to create.

Julian Thompson Julian is the co-founder and general Manager of Mosh Social Media – a specialist agency that has been helping Kiwi and international brands successfully leverage the power of social media marketing for the last 14 years. With a background in design, branding, and digital marketing, Julian’s technical understanding of the digital world is finely balanced with his ability to convey the often confusing world of social media in terms regular people will understand. Get in touch via mosh.co.nz or info@mosh

1. https://datareportal.com/reports/digital-2023-new-zealand 2. https://blog.hootsuite.com/instagram-statistics/#Instagram_Reels_stats

There’s a big shift underway globally towards bringing real people back to the core of marketing, and especially in social media marketing, where brand messaging has low value, but people still trust other people to help them make buying decisions. Engaging with UGC creators to help craft ads that don’t look like ads, or influencer marketing to talk directly to wide ranging audiences with voices that they trust, can help cut through the noise of brand messaging and give consumers a face to trust when making their buying decisions.

Video Rules Short-form video content is king of the hill in social media right now. 30% of time spent on Instagram is spent watching Reels2, and the average users spends

“Short-form video content is king of the hill in social media right now.” FMCG BUSINESS - NOVEMBER/DECEMBER 2023

marketing

Do you prefer your influence natural or virtual?

Lew Bentley Strategic Planner at Headlight www.headlight.co.nz

“We keep hearing that AI is changing everything, and that is also true with influencers.”

Pretty much every marketing plan these days has a line item for “Influencers”. Those modern-day notables who have managed to accumulate large numbers of followers on social media and who have the ability to influence the opinions and behaviour of others. The social assumption with influencers is that they are objective – it is their opinion and preferences that they express. That they are independent – they share wonderful things they have discovered for themselves. That they are authentic – they speak honestly about the content they produce. On the other hand many marketers tend to see influencers as a media channel that they can use to extend reach with consumers when traditional media options have diminishing impact. Influencers are key to that elusive nirvana of ‘going viral’ and becoming popular through grass-roots magic. As social media has matured, influencers have turned pro. These days organic influence is too slow and too unpredictable for most marketers who like the control of other media options. There is nothing worse for marketers to use influencers who speak with a mind of their own and stray off-message, or don’t follow the brand script. Consequently, we have seen the rise of the paid influencer. Paid influencers work to the assumption that they will follow the client’s brief and promote their product in a convincing way in return for a fee. As a result, the authenticity of influencers can come into question as they eagerly promote the latest product that has arrived on their doorstep today; day after day. Instead of being objective opinion formers, they have become just another advertising channel. Paid influence can mean big money.

Virtual influencers are artificially constructed avatars who always stay on brief.

FMCG BUSINESS - NOVEMBER/DECEMBER 2023

Internationally, if you are really good at sport, or you are Kardashian-related you can earn serious bucks. Christiano Ronaldo earns US$2.3 million per post. In New Zealand we are rather more modest, but our top influencers like ‘How to Dad’ can still earn around $9,000 per video. We keep hearing that AI is changing everything, and that is also true with influencers. Virtual influencers are artificially constructed avatars who serve the purposes of human influencers but without any moral dilemma and always stay on brief. As we become more and more comfortable relating to virtual characters in our lives, from cartoons, to online games, to the chatbot at the bank, the same is true with virtual influencers. The following populations of the top virtual influencers is enormous. According to INSG* the current top 10 virtual influencers internationally are: 1. Lil Miquela – @lilmiquela 2. Imma – @imma.gram 3. E.M.O.I – @e.m.oi 4. Ion Gottlich – @iongottlich 5. Shudu – @shudu.gram 6. Thalasya – @thalasya_ 7. B – @bee_nfluencer 8. Body by Ralph – @bodybyralph 9. Bermuda – @bermudaisbae 10. Qai Qai – @realqaiqai Top of the pops is Miquela Sousa, or better known as Lil Miquela. She is a Brazilian-American beauty with 3 million followers on Instagram, and 3.6 million followers on Tik Tok. Her resume includes assignments for brands like Prada, Dior and Calvin Klein. She has also a singer who has released her first single and music video and appeared at the online festival Lollapalooza. Imma is a Japanese virtual girl with 2 million Tik Tok followers and 407,000 on Instagram. She has promoted brands like Burberry, Amazon, Porsche, Valentino and Ikea. While there is a trend for virtual influencers to be perfectly pretty, forever young girls, not all are. Ion Gottlich is a muscle-bound virtual sports and health dude, designed to inspire you to eat well and keep fit. As fact and fiction become increasingly blurred in this modern world we have greater choice than ever before in where we take our inspiration from. Virtual influencers are showing us a glimpse of the future, and I can’t help but think that Barbie is poised to feature strongly. *https://www.insg.co/en/virtual-influencers-world/

legal advice

Grocery industry competition – change underway On 10 July 2023, the Grocery Industry Competition Act 2023 (GICA) came into force, with the purpose of promoting competition and efficiency in the grocery industry for the long-term benefit of consumers in New Zealand. The primary mechanism by which GICA seeks to achieve those ends is by regulating the relationships between Regulated Grocery Retailers (RGRs) and their suppliers. At present, Foodstuffs and Woolworths are the only RGRs, though the GICA provides for other RGRs to be designated on the recommendation of the Minister of Commerce and Consumer Affairs. The GICA requires the Commerce Commission (CC) to monitor competition and efficiency in the grocery sector and provide an annual report – the CC intends to release the first of those reports as early as June 2024.

Wholesale supply

The New Grocery Supply Code

A regulated dispute resolution scheme is currently being established, under which a binding determination by a non-judicial decision-maker can be made on eligible disputes. The CC anticipates this should be in place by the end of 2023. Once that is established, wholesale customers and suppliers may refer any dispute to that scheme. This article intends only to provide a broad outline of the currently-ongoing implementation of the GICA and the GSC. If your business is associated in any way with the grocery industry, we would recommend seeking legal advice on the impacts of this new legislation on your business.

On 28 September 2023, the Grocery Supply Code (GSC) came into force, which all RGRs and associated persons are required to comply with. The GSC is intended to promote fair conduct between retailers and suppliers, and foster effective competition, confidence, and diversity of suppliers in the grocery industry. There is currently a six-month grace period until 28 March 2024 to allow RGRs and suppliers time to review and update their existing agreements to comply with the GSC. The following is a summary of the main provisions in the GSC: • RGRs must deal with suppliers in good faith; • RGRs must ensure that their grocery supply agreements are written in plain English; • RGRs must not vary a grocery supply agreement without the consent of the supplier concerned or with retrospective effect; • RGRs must not require a supplier to use a particular transport or logistics service; • RGRs must not require a supplier to pay for the costs of its business activities unless this is agreed and reasonable; • RGRs must not obstruct a supplier from supplying groceries to any other party; • RGRs must respect the intellectual property of suppliers.

RGRs are obliged under the GICA to consider requests for wholesale supply in good faith and consistent with a competitive wholesale market. If the CC considers that additional regulation is necessary to achieve those objectives, it may require a RGR to establish a framework providing transparency of its criteria for wholesale supply and/or impose rules relating to wholesale supply. All RGRs must have, by 10 October 2023, implemented effective systems and processes that are necessary to supply wholesale groceries to wholesale customers. If a RGR fails to comply with its obligations to facilitate wholesale supply agreements, wholesale customers may seek compensation.

Philip Muir is a Litigation Associate at Steindle Williams Legal www.swlegal.co.nz

Dispute resolution scheme

“A regulated dispute resolution scheme is currently being established”

FMCG BUSINESS - NOVEMBER/DECEMBER 2023

Shared Horizons at the FGC conference

Raewyn Bleakley Chief Executive New Zealand Food & Grocery Council www.fgc.org.nz

food& grocery COUNCIL NEW ZEALAND

“2024 will be a year of tough conversations.”

Around 200 people travelled to the Sydney Hilton on 1-3 November for the annual New Zealand Food and Grocery Council conference. Titled ‘Shared Horizons’, it was opened by a poignant welcome to country from Aunty Donna, which acknowledged and paid respects to the people of the land of the Gadigal and nation of Eora, and was followed by a mihi whakatau, karakia and waiata. It was a privilege for me, as Chief Executive officiating at my second conference, to speak to members about what NZFGC, under the guidance of our refreshed Board, has achieved over the past 12 months and the priorities for the future. The importance of our strategic and constitutional reviews and being a strong, credible evidence-based voice for our critical industry to a new government in challenging economic times were at the core of my address. Grocery Commissioner Pierre van Heerden noted our sector is a vital one, making up $25 billion of the economy, involving producers and suppliers big and small, and is fundamental to Kiwi consumers. His message was that everyone up and down the supply chain has an important role to play in delivering on the once-in-a-generation opportunity we have in front of us to create more choice, competition, and better outcomes. He spoke of the tremendous value of working together and the sustainable, enduring benefits that will come from co-operation, collaboration, and innovation, and he quoted the whakataukī Nā tō rourou, nā taku rourou ka ora ai te iwi - with your food basket and my food basket, the people will thrive. Mike Rudman of NextGen Group, NZFGC’s partner (along with Matthews Law) in the

Spencer Sonn and the Woolworths NZ team

development of member training on the Code of Conduct, gave his forthright view on how our market is out of order, and shared his experience from working in the Australian sector for many years, warning 2024 will be a year of tough conversations. It was a highlight for me to introduce Jonathan Love, of ASN Media, to launch Shared Horizons, our online video series showcasing the depth, diversity, and ingenuity of the food and grocery sector, and addressing the challenges and opportunities that lie ahead for the industry. A 20-minute trailer featured interviews with industry leaders and key stakeholders on the themes of food security and waste, packaging and the circular economy, skills and education, and reformulation and innovation. We were delighted to have the largest number of retailers ever present at a NZFGC conference. They included Spencer Sonn (and a team of three) of Woolworths NZ, Matthew Lane, of Night ‘n Day, Mary Devine, of Foodstuffs South Island, Chris Quin of Foodstuffs North Island, and Patrick Noone, of Costco. We acknowledged the disappointment of

Megan Treston of NielsenIQ

FGC Chief Executive Raewyn Bleakley makes her opening address

FMCG BUSINESS - NOVEMBER/DECEMBER 2023

FGC

Patrick Noone of Costco

The trade discussion panel

Supie’s demise and how much we had been looking forward to hearing from them as well. Using data, innovation and a keen eye on international trends were themes aptly presented by Circana’s Debbie Simpson-Pudney in her State of the Industry report. In breakout workshops, Paul Miller, of Insightful.Mobi, presented ‘Boosting Sales Team Efficiency: Exploring Data and AI in Today’s Retail Climate’, which gave members a taste of what AI could offer, while Tobias Tripp of Toitu Envirocare presented ‘From Green Sprouts to Grown Concerns: the rise of Greenwashing in FMCG’ and how important verifying your environmental credentials is. The first of two panel discussions was titled Trans-Tasman Horizons and saw Tanya Barden, CE of Australian Food and Grocery Council, discuss consumer trends with NZFGC Chair Mike Pretty (Heinz-Wattie’s NZ), Board member Cameron Scott (Kimberly-Clark), and myself. Tanya discussed the benefits of having a Code of Conduct, the early teething problems, grocery supply agreements, and what’s happening in Australia around sustainability issues. Cameron outlined the latest on what is happening in New Zealand on sustainability and emissions, and I talked about the opportunities for advocacy on sustainability issues with the new Government.

Sugar. Topics included trade with Australia and China, how to go about identifying new markets, the wisdom of diversifying into fresh markets, and opportunities for companies in recent free trade agreements, especially with the UK. Megan Treston of NielsenIQ, launched her company’s Breakthrough Innovation Awards for 2023 in Australia and NZ. The awards recognise 15 successful product launches across all strategies and acknowledge 14 products showing great potential for future. I am pleased to announce next year’s conference will be in Wellington on 12 and 13 November at the recently completed Tākina Wellington Convention and Exhibition Centre.

Identifying new markets Day 2 opened with a panel discussion on topical international traderelated issues, moderated by Sarah Salmond of MinterEllisonRuddWatts, and featuring trade expert Stephen Jacobi, NZTE Regional Director Glen Murray, NZFGC Chair Mike Pretty, and Matt Donn of NZ

Matthew Lane of Night ‘n Day

The gala dinner

Grocery Commissioner Pierre van Heerden spoke on the first day of conference.

FMCG BUSINESS - NOVEMBER/DECEMBER 2023

New Zealand Food Awards winners revealed

A vanilla that’s anything but average took centre stage at the prestigious good quality surplus food every month and diverts it back to people who New Zealand Food Awards alongside our favourite bit on the side – are struggling across the country. tomato sauce that is! KiwiHarvest Founder Deb Manning says it was an honour to be Heilala Vanilla, ‘the good vanilla’ producer that is locally owned and selected as the nominated charity: “All funds raised will go towards operated was crowned as Massey University’s 2023 Supreme Award our mission to reduce food waste and see nutritious food fulfilling its winner for their new and innovative premium product, Alcohol Free intended purpose – to nourish people across Aotearoa.” Vanilla Paste. The other big winner of the night was all-time Kiwi Heilala Vanilla won both the Pantry Award sponsored by Countdown classic Wattie’s Tomato Sauce, who was awarded the Product Lifetime and the Business Innovation Award sponsored by BNZ. Heilala Vanilla Achievement Award. is a privately owned company with a sharp moral compass, and a More than 350 guests attended the gala dinner at Auckland’s Aotea commitment to actively investing in their communities. Sustainability Centre to celebrate excellence and innovation amongst Aotearoa New is at the forefront of operations, and is weaved into everything they do, Zealand’s food and beverage industry. This year attendees were invited including a zero waste approach. to purchase finalists’ products that were proudly displayed throughout The national headquarters are in Tauranga but the true magic happens the evening with all over in the Kingdom of proceeds going to Tonga where the vanilla nominated charity, is grown. Heilala Vanilla KiwiHarvest. The exists today because of finalist marketplace an aid project that John raised over $1,600 Ross and his family which equates to founded in 2002 after 4,600 meals. the island was brutally KiwiHarvest were ravaged by Cyclone named the 2022 Food Waka. After partnering Hero winners – a with a local family in the title which recognises village of Utungake, a a business that small vanilla plantation continually supports was established and the Aotearoa’s food and global humanitarian beverage industry. brand Heilala Vanilla KiwiHarvest rescues was born. Tré Anderson, Oli Boyes, Nadia Lim, Jason Medina and Michelle Wallis of between 170,000The company’s Royalburn with Honourable Rachel Brooking, Minister for Food Safety. 200,000 kilograms of newest and award34

FMCG BUSINESS - NOVEMBER/DECEMBER 2023

events

Co-founder Garth Boggiss and Marketing Manager Ruby Grant of Heilala Vanilla with Massey University Vice-Chancellor Professor Jan Thomas (middle).

Troy Gullery, Paul Maxwell (Category Manager Dairy – Countdown), Justine Pearce, Sam De Weyer, Lana Blaire, Jaclyn Ooi of Kāpiti with Sam Heveldt (Category Manager Delicatessen - Countdown).

winning product, Alcohol Free Vanilla Paste, is described by the judges as truly innovative and scored maximum points for both innovation and sustainability. It provides consumers with an alcohol-free alternative without compromising on taste – a rare achievement given the technical complexity involved in production. Heilala Vanilla have heavily invested into researching and developing their product range to ensure its latest addition is of the highest quality. The Business Innovation judges praised Heilala Vanilla for being a proactive business leading the way for consumers. “Innovation is reflected in every aspect of product, channel, brand and operations. Heilala Vanilla are a model company with a premium product, doing all they can to extend its positioning in a global market. Their success is a testament to the power of integrating inward technological investment, social values and quality ingredients.

Kiwi classic wins Product Lifetime Achievement Award Wattie’s Tomato Sauce, a classic Kiwi favourite, won the Product Lifetime Achievement Award sponsored by AsureQuality. The award, which was introduced in 2019, celebrates Kiwi products that have withstood the test of time, and its consumer loyalty is proof of the impact of its initial innovation. The New Zealand Food Awards have celebrated New Zealand’s food and beverage manufacturers since 1987, focusing on innovation, sustainability and excellence. The awards are open to small and large food and beverage manufacturers, primary food producers, food service providers and ingredient supply companies. Finalist and winning products earn the New Zealand Food Award’s quality mark to highlight their technical capability, consumer acceptability, regulatory

compliance, and food quality and safety to consumers and industry. The awards programme is made possible with the support of Te Kunenga ki Pūrehuroa Massey University, Countdown, Cuisine, Palmerston North City Council, BNZ, New Zealand Food Safety, FoodHQ, New Zealand Food Innovation Network, AsureQuality, FMCG Business, New Zealand Trade and Enterprise, The New Zealand Institute of Food Science & Technology Inc., XPO Exhibitions and Villa Maria. Artisan Award – Sponsored by Cuisine Mixed Roots – “Hot Stuff” Curry Oil Below Zero Award – Sponsored by FoodHQ EatKinda – EatKinda Strawberry Swirl Beverage Award – Sponsored by Massey University AVATAR – Mānuka Honey Elixir - Lemon & Mixed Berry Flavoured Business Innovation Award – Sponsored by BNZ Heilala Vanilla Chilled Award – Sponsored by Countdown Kāpiti – Succulent Summer Plum Yoghurt Health and Wellbeing Award – Sponsored by Palmerston North City Council Pure Food Co – Tiramisu Lifetime Achievement Award – Sponsored by AsureQuality Wattie’s – Tomato Sauce Novel Award – Sponsored by New Zealand Food Innovation Network EatKinda – EatKinda Mint Choc Bikkie Pantry Award – Sponsored by Countdown Heilala Vanilla – Alcohol Free Vanilla Paste Primary Sector Award – Sponsored by New Zealand Food Safety Royalburn – Fine Lamb Supreme Award – Sponsored by Massey University Heilala Vanilla – Alcohol Free Vanilla Paste For more information, visit www.foodawards.co.nz FMCG BUSINESS - NOVEMBER/DECEMBER 2023

Out & About

istopher Luxon visited

NZ Prime Minister Chr

tory in Auckland.

the Chelsea Sugar Fac

Eliana Leal from Amisfield is the 2023 Tonnellerie de Mercurey Central Otago Young Winemaker of the Year. Paiqi Oscar Cau from Amisfield (L) came second and Callum Scarborough from Felton Road (R) came third.

ecostore closed their head office and mucked in for a clean-up event at Auckland’s Okahu Bay.

ail ed Fastest Growing Ret Awards, Ārepa was nam er North Island. Upp the At the Deloitte Fast 50 and nd kla ts Business in Auc or Consumer Produc

FMCG BUSINESS - NOVEMBER/DECEMBER 2023

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Comedian Leigh Hart; former Rugby World Champ ion Piri Weepu and award-winning Special Olympics athlete Grace Payne support a fundraiser from New Zealand Food Network, aiming to fill Eden Park with meals for Kiwis in need.

out & about

len, Prime Minister nthivong, Beatriz Cul (L to R) Anoulack Cha Mike Freelander at Dr and ala Bag rge Anthony Albanese, Geo , NSW, Australia. y opening in Ingleburn the Darrell Lea factor

Sarah Jessica Parker, MaryAnn Worobiec and Tim Lightbourne celebrate the award-winning Invivo X SJP Sauvignon Blanc at the Wine Spectator New York Wine Experience.

SNAP AND

WIN!

Viewpoint Supply Chain launched in Hawke’s Bay: (L to R) Nicolas Ganivet (Supply Chain Network Manager), Andrea Manley (GM Strategy & Supply Chain), Joubert van Tonder (Business Develo pment Manager – Supply Chain) and Matt Gittings (Supply Chain Planner ).

at the , Brent Kersel ging Director n. io na tit Ma pe ls m ke Co NZ Ba e Roll ndary Sausag Bakels Lege

Has your team moved to new premises, or been part of a fun event, great harvest, or promotional activity? Send us your favourite snapshots to be in to win a Whittaker’s Christmas hamper, consisting of one Whittaker’s Cocoa Pods® box, one Whittaker’s Cocoa Pods® pouch and a block of the limitededition Candy Cane Chocolate (valued at $49 RRP).

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

FMCG BUSINESS - NOVEMBER/DECEMBER 2023

A roaring success The 2023 C&I Expo and Symposium lived up to expectations, with 121 exhibitors taking part and hundreds more guests looking to wheel, deal, and network. The 2023 C&I Expo has beaten all previous shows to be the largest event held in Sydney in the event’s history. Over two days on 19-20 October, hundreds upon hundreds of visitors took to the halls of ICC Sydney to discover new products, meet suppliers, and make new and valuable connections. Safa de Valois, Group Publisher of C&I Media, said that with over 121 exhibitors on display the show floor was constantly buzzing with conversation. “The show was only open for a couple of hours, and I had already the feedback from several exhibitors that event was excellent and our best ever.

“We had retailers who travelled from Fiji, Papua New Guinea, and of course New Zealand, as well as right across Australia, looking for new products and insights” Safa de Valois, Group Publisher, C&I Media

Matt Dodson, General Manager of OOH at Patties Foods

Safa de Valois, Group Publisher, C&I Media

We had retailers who travelled from Fiji, Papua New Guinea, and of course New Zealand, as well as right across Australia, looking for new products and insights. There were lots of quality buyers around with strong representation from both fuel and non-fuel retailers.” Lisa Reid from Sodexo said the Expo provided a good chance to connect and understand each other’s business and unlock further opportunities to grow. “The C&I Expo is a great opportunity to connect with businesses – you might know the brand, but you might not know the people who can take it from a transactional relationship more into a partnership level. “We have come to look at new products and our goal is to come away from the show with a couple of nuggets and opportunities that we hadn’t thought of before. There are certainly a couple of new products that we will range in our business because of being here at the show.” Wayne Miller from U-Haul Australia said that over the course of the Expo they have seen everyone from the corporates, right through to the single-site operators. “We have exhibited at the C&I Expo for the last 10 years and it is the place to be to capture all of the buyers in one spot, so for us it is a one-stop shop.”

A sold-out symposium Each morning before the Expo, the sold-out C&I Symposium offered 38

FMCG BUSINESS - NOVEMBER/DECEMBER 2023

Deals being made at the C&I Expo There were plenty of networking opportunities on the Expo floor

convenience & impulse retailing attendees sessions filled with insights and data, future trends, and innovations relating to the P&C industry. Opened each day by de Valois and emceed by Matt Dodson, General Manager of OOH at Patties Foods, the first day commenced with Theo Foukkare, CEO of the Australian Association of Convenience Stores (AACS), reviewing the recent AACS International Study Tour and sharing the latest trends and The Patties Foods team developments in European convenience. Foukkare then participated in a panel discussion with Lou Lisa Reid, Sodexo Jardin, Managing Director of SPAR Australia, Joanna Graham, Senior Manager of Convenience Trading ANZ at bp, and Michael Brick, Partner and Managing Director of Meris Food Equipment. The panel discussed future-proofing convenience retail and the pain points facing store owners in the face of relentless evolution, as well as how retailers can adopt and implement new technologies most effectively. Jardin then presented insights and learnings from his decades of experience working in the retail environment and how so much has changed, but at the same time, the fundamentals remain the same. Finally, keynote speaker Tushar Menon, Co-Founder and CEO of My Muscle Chef, shared the story of the brand’s evolution from a Potts Point kitchen to today’s $200 million per year healthy food empire. Menon shared 10 key lessons he’s learned in the 10 years of growing his business, from mistakes he’s made, lessons he’s learned, and advice he would give to anyone starting up a new business. The second day’s symposium saw Fred Harrison, CEO of Ritchies, Bonnie McCoy, General Manager of Customology, and Adam Jacka, The panel discussed future-proofing convenience retail Brand, Communications, and Loyalty at 7-Eleven provide insights and data, future trends, and innovations in the P&C industry. The keynote speaker for the day was Jack Beaumont, a French spy turned author and CEO, who shared his experiences from his extraordinarily dangerous life with France’s secret service. Beaumont touched on themes such as courage, resilience, and leadership, with everyone in attendance receiving a copy of his book The Frenchman.

The $50,000 pallet winner

Tariq Kufoof from QuikStop Minimart & Cafe Bondi Junction was the lucky winner of the pallet giveaway An inquisitive audience probes the panel

Bonnie McCoy, General Manager of Customology

Tariq Kufoof from QuikStop Minimart & Cafe Bondi Junction was the lucky winner of the pallet giveaway at the 2023 C&I Expo in Sydney last week. Kufoof said the store will gladly receive the stock from the prize that is also likely to be used across the remainder of the multi-site operator’s business. “We only just opened the store in September 2023 located at Bondi Junction Railway Station. It is a mixed business between a convenience store and cafe and providing customers with a one stop shop with all grab and go products as well as beverages and confectionery. “As a cafe we open at 5am in the morning, serving customers with barista coffee and breakfasts and we are also open late until the last train at the station – until 11.30am during weekdays and 1.30am on weekends. “We also have a series of convenience and newsagency that we call QuikStop Minimart & News at Liverpool Hospital, Campbelltown Hospital, Maroubra Beach as well as two stores in Queensland at Gold Coast University Hospital and Burleigh Heads. “We are looking to open another five sites in the next two months before Christmas. The locations will be two stores in Sydney’s Eastern Suburbs, one in Manly on the Northern Beaches and two in Queensland – one in Southport and one in Surfers Paradise. “As a small business owner, winning this prize means a lot to me as it will help support my business. Winning that much stock is a very good start and I would love to thanks everyone who organised this event including Safa de Valois.” FMCG BUSINESS - NOVEMBER/DECEMBER 2023

NZACS Breakfast Highlights The New Zealand Association of Convenience Stores (NZACS) held its annual Convenience Market Review Business Breakfasts in Auckland and Christchurch in October. FMCG Business went along to bring you highlights from the Auckland event, which was attended by over 80 NZACS members, including Goodman Fielder, Tip Top Ice Cream, Bluebird, Signature Marketing and Frucor Suntory teams. The State of the Industry update was presented by Larrisa Watson Consumer Intelligence Lead at NielsenIQ. Larissa shared valuable insights, including an increase in sales in the Total Service Stations channel in New Zealand (now $1.35 billion value, up 3.3%). The New Zealand retail landscape is changing and consumers are making more conscious choices, said Larissa. “Kiwis are concerned about the cost of food and fuel at the moment, but consumers are still willing to spend money for convenience. This means it’s more important than ever to have the right range available for your 40

Breakfast Buffet

FMCG BUSINESS - NOVEMBER/DECEMBER 2023

convenience & impulse retailing

NZACS Executive Director Dave Hooker

Larissa Watson, Consumer Intelligence Lead at NielsenIQ

Shane Snaddon and Edgar Tu’inukuafe from Frucor Suntory

Hamish Ryan and Ash Dearmer

Robyn Wake and Shane Snaddon from Frucor Suntory

Yolanda Paulse Goodman Fielder and Mark Scott from Bluebird

Phillip Morris Tobacco team: Eugenie Luan, Cathy Reyes and Sun Choi

Vanessa Green and Caroline Reed from Signature Marketing

customers. You can also drive more traffic to your store by having public transport cards readily available, for example. Ice creams could be a potential opportunity in certain locations, especially as we’re seeing tourism increasing again.” “We need to continue to look for growth opportunities,” said Larissa. “We need to be aware of the evolving retail landscape and what the competition is doing. Think outside the box, and think: what is the right mix for the right location. It’s important to know your base core products and then use innovations to help drive sales. New news keeps it all exciting.” Top selling products right now include sports and energy drinks, chilled convenience foods, fresh coffee, confectionery and ice cream. Better for you drinks, such as Arepa, are also on the rise. Larissa explained that beverages, chilled food and confectionery are key growth drivers in New Zealand, but tobacco is in decline. We’re also seeing that vaping is increasing, so there could be some opportunity there. Looking ahead, new legislation restricting the sale of smoking tobacco products is coming into force from July 2024. Currently, you can buy tobacco in about 6000 stores across New Zealand. This proposal will restrict sales to 600 sites and it will have a huge impact on some stores. The event concluded with an update from NZACS Executive Director Dave Hooker: a golf fundraiser is planned for March; the annual awards night is moving to June; and the C&I Expo will be held 24-25th July 2024 at the Due Drop Events Centre in Manukau City. For more information visit https://nzacs.com/ FMCG BUSINESS - NOVEMBER/DECEMBER 2023

Night ‘n Day conference Celebrating 32 years as a New Zealand owned and operated franchise, Night ‘n Day held their annual conference in August at Karaka Double Tree by Hilton. Franchise owners, Support Centre staff, and suppliers gathered to connect, learn, and collaborate over the 3-day conference. Over 60 franchisees and their managers, spanning across 53 stores were in attendance. Night ‘n Day General Manager, Matthew Lane, says the conference is a fantastic opportunity to reflect on the year that has been, but also set a pathway for the year to come. “The atmosphere was very positive, and franchisees had a chance to reconnect and share learnings from within their environment; a good balance of contributions from Support Centre, guest speakers and suppliers covered a wide range of engaging topics.” This year was the first year that Night ‘n Day introduced an expo-style session, an opportunity for franchisees to meet face-to-face with suppliers and put faces to names, learn about new products, and get inspired for the year ahead. With positive feedback from both franchisees and suppliers, this session will be included at future Night ‘n Day conferences. Celebrations were had at the Gala evening, held at Bracu Estate, where various awards were presented to franchisees for their hard work and dedication throughout the year. It was a great opportunity to catch up in a social occasion after the business expo session. A new award, Supplier of the Year, was introduced this year and franchisees had the opportunity to vote for the supplier they deemed most deserving of this award. Congratulations to Alt., who were named Night ‘n Day Supplier of the Year 2023. Store of the Year was awarded to Night ‘n Day Winton and owners Bridget Stevens and Rebecca Excell attribute their success to their exceptional staff and their supportive local community. Store of the Year Runner-Up was awarded to Night ‘n Day Alexandra, and finalists included Night ‘n Day Taranaki Street (Wellington), Night ‘n Day Kaikorai Valley (Dunedin), and Night ‘n Day Tahunanui (Nelson). On the final day of conference, Matthew Lane held a supplier session, which he says had fantastic support from those that they partner with. “This was an open session with an opportunity to communicate our strategy and the direction we are heading in 2024. A networking session followed the presentation, connecting Support Centre staff and suppliers to round off what was a great conference.” Night ‘n Day are grateful for the support from their Award Sponsors and Principal Sponsor Coca-Cola Europacific Partners. The 2024 Night ‘n Day National Conference will be held in Invercargill from the 9th – 12th of September.

“Store of the Year was awarded to Night ‘n Day Winton”

FMCG BUSINESS - NOVEMBER/DECEMBER 2023

Supplier of the Year Award for Alt

convenience & impulse retailing

The Alt team

Store of the year finalists

FMCG BUSINESS - NOVEMBER/DECEMBER 2023

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FMCG Business NOVEMBER-DECEMBER 2023

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FMCG Business NOVEMBER-DECEMBER 2023