FMCG Business October 2019

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L E A D I N G

I N D U S T R Y

N E W S

OCTOBER 2019 – Volume 6 – No 9

PLUS! ICE CREAMS & DESSERTS n SPECIALITY CHEESE n PLANT-BASED & ORGANIC PRODUCTS NEW ZEALAND’S LARGEST FMCG AUDIENCE

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contents October 2019

UP FRONT 4

EDITOR’S NOTE

6

INDUSTRY NEWS

SPECIAL FEATURES

25

14 GOING GREEN

Plant-based and organic products

29 EXPORT

Quintessentially Kiwi 30 LEGAL ADVICE

Voidable Transactions

EVENTS

18 SPECIALTY CHEESE

31 HUNT FOR NZ’S TOP SAUSAGE

20 SWEET TREATS

Ice Creams & Desserts Category Insights

31 WHAT’S ON

Events for your diary

REGULARS

35 OUT & ABOUT

Our people - spotted at events around NZ

10 GEAR

New tech for work, rest and play

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28 FGC

Safe in the sun

32 C&I EXPO HIGHLIGHTS

12 BEST IN SEASON

Fresh produce update

THE SHOUT

13 WHAT’S HOT

New products in store

4 INDUSTRY NEWS AND INSIGHTS

17 HEALTH & WELLNESS

Well Naturally low sugar products

9 INTRODUCING PASK INSTINCT

The newest release from the Hawke’s Bay winery

GOOD BUSINESS 24 INDUSTRY NEWS 26 WHAT BUSINESS ARE YOU IN?

Expert advice from Lew Bentley, Head of Strategy at Energi 27 PROFILE

ARTSPEC – Now everybody can produce great artwork

3

EDITOR’S NOTE

10 PINOT GRIS AND CHARDONNAY Tasting notes from Cameron Douglas MS 14 HOW TO BREW SUCCESS

Q+A with specialist beer accountant Maria Pearman 16 ALE’S WELL THAT ENDS WELL

John Oszajca takes a look at the tasty style of Pale Ale

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[ editorial ]

FASCINATING FACTS Did you know that nearly 90% of adults are willing to change their personal behaviour to help tackle climate change? This was the finding of a survey of 14,000 adults from 14 countries completed for IKEA. And in a Victoria University survey of 9000 New Zealanders, 74.5% said they’d already made some sacrifices for this, while 90% of those taking part in the 2018 Colmar Brunton national survey ‘Better Futures’ agreed that if a company is irresponsible or unethical, they’d stop buying their products or using their services.

There’s been increasing interest in plant-based and organic food, perhaps as a way to reduce our impact on the environment and take action against climate change. Whether you identify as vegan, climatarian, flexitarian, or as a plant-forward omnivore, going green is definitely in the spotlight. You can find out more about this trend on pg 14-16.

We come across a lot of fascinating food facts in our daily research. This month I learned that the rise and rise of instant noodles (also known as instant ramen in other parts of the world) is unstoppable. While many shoppers look for fresh, organic ingredients, others simply love an affordable, convenient and satisfying noodle meal. About 40 billion servings of instant noodles were sold globally in the mid-1990s - but this has now increased to 100 billion servings.

If you’re a cheese fan, then you will find loads of interesting events as part of New Zealand Cheese Month this October. There is a shift in our shopping behaviour towards cheese that’s premium, authentic and special, say the experts at IRI, who reveal what’s driving sales in local and imported cheeses on pg 18-19.

For more news, awards and events, subscribe to our weekly edm via www.fmcgbusiness.co.nz and join our conversations on Facebook, Instagram and Twitter. And if you have a fascinating food fact, new product launch, or great snaps to share then please get in touch.

We’d love to hear from you!

PUBLISHED BY The Intermedia Group Ltd 505 Rosebank Road, Avondale Auckland, 1026, New Zealand ph: 021 361 136 PUBLISHER Dale Spencer dspencer@intermedianz.co.nz EDITORIAL DIRECTOR James Wells The Intermedia Group Pty Ltd AUSTRALIA james@intermedia.com.au HEAD OF CONTENT Tamara Rubanowski trubanowski@intermedianz.co.nz ph: 027 278 4761 SALES MANAGER Brigid DiMattina bri@intermedianz.co.nz ph: 029 230 1372 NATIONAL SALES MANAGER Vicky Bennett vbennett@intermedianz.co.nz ph: 021 626 115 SALES DIRECTOR Wendy Steele wsteele@intermedianz.co.nz ph: 021 300 473 THE SHOUT EDITOR Charlotte Cowan ccowan@intermedianz.co.nz ph: 021 774 080 THE SHOUT SALES DIRECTOR Jacqueline Freeman jfreeman@intermedianz.co.nz ART DIRECTOR Ryan Vizcarra ryanv@intermedia.com.au ACTING CIRCULATIONS MANAGER Troy Brookes subscriptions@intermedia.com.au PRODUCTION MANAGER Jacqui Cooper jacqui@intermedia.com.au

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L E A D I N G

I N D U S T R Y

N E W S

OCTOBER 2019 – Volume 6 – No 9

ON THE COVER Find out all the details about a very special Manuka Doctor promotion on pg 24.

PLUS! ICE CREAMS & DESSERTS n SPECIALITY CHEESE n PLANT-BASED & ORGANIC PRODUCTS NEW ZEALAND’S LARGEST FMCG AUDIENCE

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DISCLAIMER This publication is published by The Intermedia Group 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.

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[ news ]

CONTAINER RETURN SCHEME FOR NZ

A similar scheme is already underway in other countries, such as Germany.

The Government has announced a beverage container return scheme, offering consumers between 5-20 cents back when they recycle their drink bottles.

Associate Minister for Environment Eugenie Sage made the announcement at the WasteMINZ conference in Hamilton, saying work had begun to design the scheme. “Too many beverage containers end up in landfill, on the streets, in rivers and in the ocean. Our recovery rates are only between 42 and 58%,” Sage said.

Plastic, glass and aluminium drink containers will carry a refundable deposit, potentially between 5-20 cents each. Consumers will get this back when they recycle containers at a drop-off point. The cost of the deposit will be added on to the product initially, but would be returned if the consumer recycles it, she said.

Beverage containers will be recycled and reprocessed in New Zealand, and also internationally, where Sage said there is a still a market for high quality PET plastics and aluminium.

Auckland Council and Malborough District Council will carry out the project design with Government funding of nearly $1 million from the Waste Minimisation Fund. The two councils will work with the Ministry for the Environment and others including the beverage, packaging and recycling industries, councils, retailers, charitable organisations, Māori and consumer representatives.

The design proposal will be presented to the Government by August 2020 and it is anticipated the scheme could be operational here by 2022.

It could be a reverse vending machine model – similar to those used in Europe and Australia - where consumers put used bottles into machines at supermarkets, or it could involve collection depots or kerbside collection. The scheme may involve a mix of these models.

There are at least 40 container return schemes globally, including most Australian states, parts of Europe and the United States.

KAUFLAND ARRIVES IN AUSTRALIA German supermarket chain Kaufland will open its first Australian stores in 2021, with suppliers being informed it has already bought 25 sites.

The Australian grocery sector is valued at A$90 billion and it is understood that Kaufland will position itself as a cross between Target and Coles.

The average Kaufland store is tipped to generate $46 million in annual sales, with it expecting to open between 10 and 15 stores on Australia’s eastern seaboard in 2021, with stores holding between 28,000 and 30,000 products.

Source: The Australian

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[ news ]

A NEW WORLD FOR MANGAWHAI A New World supermarket will be opening in the vibrant coastal town of Mangawhai by late 2021, set to provide greater convenience for locals and holiday makers.

An easy 90 minutes to central Auckland and located on the picturesque East Coast, Mangawhai offers a relaxing coastal lifestyle that more and more residents are calling home.

Proudly 100% Kiwi owned and operated, New World will be the first full-service supermarket to serve the growing coastal town, while staying at a size and character deemed suitable for Mangawhai.

The new supermarket will provide fresh and quality butchery, produce, seafood, deli, and bakery departments, an extensive range of products with an emphasis on local and seasonal and a superior customer experience that shoppers have grown to expect and love from New World stores everywhere.

New jobs will be created in the area for locals and summer visitors Mrs Higgings Share Pack ad FIN FMCG.pdf

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seeking an exciting and fast past pace job in the grocery industry.

From in-store butchery, bakery and seafood fresh experts, to checkout operators and department managers, there will be many job opportunities available.

The New World supermarket is part of the Mangawhai Central development, located in between Mangawhai “Heads” and “Village” along a picturesque causeway, and is among other anchor tenants.

The supermarket will open in late 2021, just in time for the busy Christmas summer holiday period.

[ news ]

SEALORD REVEALS NEW CEO Current Chief Executive Officer (CEO) of Sealord, Steve Yung, informed the Sealord Board of Directors earlier this year of his intention to step down at the end of 2020 financial year. The Board announced that effective 1st October 2020, Doug Paulin will be taking over as CEO of Sealord Group.

Paulin will be Chief Operating Officer effective 1st October 2019, working closely with Yung through a phased transition plan over the next 12 months until he officially takes over as CEO. Paulin began his career with the Royal New Zealand Air Force, followed by 11 years with Lion Nathan working within sales and marketing. He also spent two years as part of the Lion Nathan strategic team, where he led Lion’s entry to the Grocery channel. Paulin then spent five years as the Chief Executive Officer for Hubbard Foods before joining Sealord.

Doug Paulin will be taking over as CEO of Sealord Group next year.

Paulin has a BCom/LLB from the University of Otago, a MBA from Henley Management College in England and is a graduate of the Advanced Management Program at Harvard University in Boston.

Paulin’s whakapapa links him to Ngati Porou and Ngati Raukawa.

Sealord Board Chairman Whaimutu Dewes extended his thanks to Yung for his huge effort in leading Sealord for the past five years as Chief Executive Officer, saying: “Steve has done a superb job evolving Sealord into the organisation it is today with a strong performance culture, clear strategic focus in deep sea fishing and aquaculture, and consistent financial results. Steve remains focused on the continued success of Sealord, and will work closely with Doug to ensure a successful transition whilst continuing business as usual.”

NOKIA 2.1

Pat Pilcher’s monthly round up of all the tech worth knowing about, for work, rest and play.

Tech media might be obsessed with expensive flagship phones, but what about those of us on a budget who don’t have a spare $1500 to throw at a smartphone?

Nokia’s 2.1 could be the answer.

Costing just $199, the Nokia 2.1 has enough power to do any smartphone chore you’re likely to need. It also comes with several nifty features such as a dedicated Google Assistant button and a user-replaceable battery and custom backs. https://www.spark.co.nz/shop/ mobile/phones/nokia-2_1--blue-copper $199

D-LINK SMART PLUGS Smart lights, speakers, TV, Doorbells, and so on. The list of smart appliances seems endless, but what about adding smarts to dumb devices you already own? D-Link has the answer in the form of smart plugs, which are Wi-Fi and Alexa compatible and will also work with IFTTT.com. Dumb appliances can be switched on using your voice, or simple scripts from IFTTT.com (so that the lamp can switch on if your cell phone is within 50 metres of your home). Getting set up is a doddle, plug the smart plug into your wall socket and the appliance into the smart plug. https://www.dlink.co.nz/home-solutions/DSP-W118mydlink-Mini-Wi-Fi-Smart-Plug $55.99

ACRONIS TRUE IMAGE Installing a new hard drive can be a real chore for PC owners.

Connecting and mounting the hard drive is easy. The real slog comes with copying all your old files, apps and settings off your old hard drive. Acronis has this sorted thanks to True image. It can take a snapshot of your old hard drive, which can then be easily transferred to the new hard drive to give you an exact copy.

Backups and Upgrades have never been more accessible. https://www.acronis.com/en-us/support/trueimage/2019/ $77

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[ gear ] Go digital with your record keeping

Food Safety Plan

ONLINE PROCESS

AMAZON KINDLE OASIS There’s nothing quite like a pile of trashy paperbacks when you’re on holiday. Their downside is that they’re bulky and heavy. It isn’t a good thing with airlines charging the GDP of a developing nation for excess luggage. Amazon’s Kindle Oasis can hold thousands of e-books and yet is small enough to slip into your luggage, consuming hardly any space at all. Add to this a backlight for night reading and water resistance for poolside reads, and you’ve got the marketing of the perfect travel companion https://www.amazon.com/All-new-Kindle-Oasis-adjustable-special/dp/B07F7TLZF4 $269.99

RECORDS ARE CAPTURED (AUTOMATICALLY & MANUALLY) ONLINE AND STORED SECURELY Generate report

GOOGLE MAPS UPDATE

Finding your way around a new city just got a whole lot easier thanks to an update to Google’s free Mobile Maps app. The update will be available to all iOS and Android devices.

While Google maps used to be reliant on the notoriously inaccurate compasses built into smartphones, the updated version of Google maps uses AI and image recognition to locate your position based on what your phone camera sees as well as what GPS says your current location is. Tapping “Live View” near the bottom of the screen provides a quick and easy way to navigate orientation by overlaying what your phone camera sees with arrows and big location markers when you hold up your phone. The net result is near bomb-proof navigation (just make sure not to rely completely on looking at your phone’s screen or you may walk into a lamppost/car/person. Users keen to avoid roaming data charges can also download offline maps, to store on the phone. The update will roll out to phones over the next few months and is free to use. https://www.google.com/maps

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Contact us today! +64 (9) 274 7014 sales@imonitor.co.nz www.imonitor.co.nz

FMCG BUSINESS - OCTOBER 2019

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[ fresh produce ]

BEST IN SEASON With spring in full swing, the demand for salad-type vegetables will increase, meaning items like cucumber, spring-onions, radishes, loose-leaf spinach and celery should be well stocked.

Tropical fruit including melon, pawpaw, pineapple and mango will start to become more sought after too, so dedicate space for these.

Asparagus and strawberries have arrived, and these two items are the catalyst to increasing traffic in your produce department as consumers purchase and consume these specialties quickly.

Courgettes are now at their peak and soft berries such as raspberries and blueberries make a welcome appearance and add vibrance to shelves.

Avocados Touted as the king of all superfoods, the popularity of avocados has risen dramatically over the last few years with consumers screaming out for them year-round. The main avocado season runs from August to February, however smaller volumes are available outside this time. Varieties grown in New Zealand include Hass, Reed and Fuerte as well as lesser known varieties Carmen and Maluma.

What to look for: Bright green avocados should not be displayed until they are olive green. Less than 20% of your display should be olive green with 80%-90% of your display being brown/green to purple/ brown. Do not display black avocados as they are overripe.

Storage/handling: Ripen avocados at room temperature and then store in the refrigerator. Do not squeeze them as they bruise easily.

Choose Hass avocados based on colour – bright green are not ripe, olive green will be ripe in 2-3 days, brown/green are firm ripe and purple/brown are soft ripe. Reed avocados stay green when ripe, they are ready when the stem yields to gentle pressure.

Nutrition: Avocados contain good 12

FMCG BUSINESS - OCTOBER 2019

sources of dietary fibre which supports digestive health and Vitamin B6 which helps to balance hormones.

They are sources of Vitamins C and E that act as antioxidants to protect the body against free radical damage. They also contain potassium which assists with healthy fluid and mineral balance.

Mushrooms Not only are mushrooms always in season and grown year-round, there are ample varieties with distinct flavour and nutrition profiles available. There are actually 70,000 varieties of mushrooms, however only 250 are edible. Mushrooms are a great alternative to meat due to their firm texture and savoury taste - and because of the trending plant-based movement, have become even more popular. The main varieties sold in New Zealand include White Button, Portobello, Shiitake, Oyster and Swiss Browns.

What to look for: Select mushrooms that are firm with a fresh, smooth appearance. The surface of the mushroom should be plump and dry, but not dried out.

Storage/handling: Mushrooms are very delicate and should be handled carefully. Keep them refrigerated and dry where possible with quick stock turnover to ensure freshness.

Nutrition: Mushrooms are a good source of pantothenic acid which helps the body utilise iron, supporting energy production. They are also a source of selenium which is good for hair and nails, phosphorus for strong bones and teeth and riboflavin for healthy skin and body tissues.

“TOUTED AS THE KING OF ALL SUPERFOODS, THE POPULARITY OF AVOCADOS HAS RISEN DRAMATICALLY.” Join us on

www.unitedfresh.co.nz

Ahhh Shampoo and Conditioner Bars A vibrant,fun and playful approach to natural, sustainable beautyAhhh create vibrant bath and body products, handcrafted in New Zealand using natural ingredients.

Proving that natural, sustainably motivated beauty can also be playful, Ahhh products are colourful, smell divine and look good enough to eat, while leaving your skin feeling soft, cleansed and nourished.

Contact sales@ahhh.nz or Stuart Campbell - Sales Manager on 0273261821 www.ahhh.nz

Tatua launches NEW Caramel Mousse Tatua has expanded its range of convenient whipped desserts! With no artificial flavours or preservatives, Tatua Caramel Mousse is the perfect quick and easy dessert to keep in your fridge.

Light, creamy and oh-sodelicious, this culinary creation pairs well with your favourite sweet treat - or enjoy it on its own!

RRP $5.49 www.tatuarecipes.com

Experience Curiously Crunchy Havarti!

Just in time for spring and building on the success of its Creamy Havarti, Castello® adds Aged Havarti to its premium range.

Matured for 12 months, the flavours are crushed almonds and hazelnuts, sweet with a sharp finish. As the cheese ripens small crystals develop offering a richer taste experience. Perfect sliced on freshly baked bread or serve with apples, honey and Villa Maria Cellar Selection Pinot Noir.

RRP $11.49 www.facebook.com/castellocheesenz Contact NZCustService@hutchinsons.co.nz or phone 0800 555 258

A taste of Mexico from THE WHOLE MIX Our new fresh Mexican Coleslaw kit makes creative meals easy combining the taste of Mexico with the crunch of corn chips and our delicious chipotle dressing – just toss it all together and serve.

Our recipes are created here to excite Kiwi taste buds – spicing up the salad category for summer. www.thewholemix.co.nz 0800 366 3246 info@thewholemix.co.nz

Beak & Sons Launch Craft Beer Ribs Beak & Sons proudly unveil their latest collaboration. This original new flavourful recipe has a bitter sweet malty flavour and is made with full bodied Good George IPA. These succulent ribs are convenient & easy, only 10 minutes to heat. Superb for sharing & feeding a crowd. Prepare to get messy! www.facebook.com/Beak-Sons-NZ-2171187839633638 Ph: 09 260 4110

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GOING

GREEN

A snapshot of popular plant-based and organic products.

Shoppers in New Zealand are increasingly searching for plant-based and organic food - a trend driven by many factors, including health and environmental considerations.

Organic farming does not rely on synthetic pesticides or fertilizers, significantly reducing water and soil contamination. As a result, organic farms create havens for wildlife including homes for the birds and the bees and have been proven to have more biodiversity.

Organic certification is the world’s most widelyused, secure traceability system. Every single certified product can be traced back to its origin.

“Organic” has been defined by the Ministry of Primary Industries (MPI) as - avoiding or excluding the use of synthetic fertilisers, pesticides, antibiotics, growth modification and irradiation.

Any farm, producer or manufacturer operating to satisfy the BioGro organic standards in New Zealand are assessed and audited every year.

Harraways Organic Oats Harraways, the trusted New Zealand brand of oats for over 150 years, has just refreshed its organic range of bulk packed oats this year. Packed in Dunedin, these 800g bags of oats come in fully recyclable packs. As well as the smaller flaked Organic Rolled Oats – great for a smooth, creamy porridge, there is the Organic Wholegrain variety, which delivers a more wholesome rolled oat, which is ideal for muesli and baking, explains Peter Cox, who is in charge of Marketing and New Product Development at Harraways.

He says: “Harraways Organic Oats are grown on organic certified farms. BioGro certification guarantees that NO synthetic fertilisers, herbicides or pesticides are used in the growth, transportation or storage of the oats.”

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[ feature ] “NEW ZEALAND HAS SEEN A FIVE-FOLD INCREASE IN THE CONSUMPTION OF VEGAN MEALS.” MARY BOULTON, GENERAL MANAGER PITANGO

Boulton says: “50% of Pitango’s soup range is already vegan friendly, and fresh soup is the ideal way for people to get their daily requirements of plant-based nutrients. Every pack of Pitango soup has two or more serves of an adult’s daily vegetable requirement. Plant-based food offers are at the forefront of our innovation pipeline as we cater to our consumers’ changing needs – watch this space!”

Plant-based Pitango products

Genoese Plant-based REAL DIP

Pitango announced a partnership with Sunfed earlier this year, to create a vegan soup and to make selecting plant-based meals easier and more convenient for New Zealanders.

The Pitango “Soup of the Season” Sunfed Chicken Free Chicken Thai Style Soup became available nationally in April 2019.

“Over the last decade New Zealand has seen a five-fold increase in the consumption of vegan meals,” comments Pitango General Manager Mary Boulton.

“New Zealanders are now actively choosing to include vegan, plant-based meals into their weekly menu at least once a week.”

Apparently, 1 in 10 New Zealanders are vegetarian or mostly meat free, according to a recently published report from The Better Futures.

“Millennials are leading the plantbased movement,” says Boulton.

“With growing concerns and consideration for animal welfare, personal health and the environment with this younger generation it is significantly changing the projection of most industries, including FMCG. And we want to cater to that change.”

“Sunfed is all about empowering consumers by expanding their choice,” comments Shama Sukul Lee, CEO and Founder of Sunfed.

“As awareness of the impact of animal protein grows, consumers are looking for alternative protein options and existing meat alternatives on the market are not comparable in taste, texture and nutrition.”

Like Pitango, Sunfed is created using natural wholesome ingredients, such as protein-packed pulses. The Pitango Sunfed Chicken Free Chicken Thai Style Soup is completely clean label: soy free, gluten free, preservative free, GMO free and 100% vegan. It’s high in protein and available in a 380gm chilled pouch ready to ‘heat and eat’.

“Genoese is the country’s *No. 1 brand of fresh pesto, reputed for its delicious natural pesto made in Levin with fresh, aromatic basil,” says Andrew Parkin, CEO of Genoese Foods.

“On the back of the success of our new Plantbased Fresh Basil Pesto and consumers embracing a plant-based lifestyle we saw an opportunity to be more active in the dip space, to fill the gap for premium ‘real’ dips. The consumers we’ve talked to want food they can trust, they’re saying no to preservatives and other ‘nasties, in other words they only want ‘real’ ingredients and it needs to be nutritious and delicious.

“With these needs in mind we put a lot of effort into recipe development and in August launched the new Genoese Plant-based REAL DIP range in three deliciously real flavours: Beetroot with cashews, Roast Capsicum with cashews and Fresh Basil Pesto with cashews.

“Not only are the REAL DIPS delicious but they’re crafted in small batches using natural, wholefood ingredients and are dairy-free, gluten-free, sulphite and preservative free and vegan friendly, ticking all the boxes for dip lovers wanting ‘real’ dips.

“We’ve made it easy for consumers to choose the product that’s right for them with the name ‘REAL DIP’, clear icons showing the product benefits and tempting images on pack highlighting the flavours and showing the dips in situ. The new hexagonal tub shape is ideal for dipping making it easy to enjoy.

“Genoese Plant-based REAL DIPS have a noticeable fresh taste with bold, aromatic flavours and extra chunky cashews.

“We’re confident our new range will bring value to the dip category, stimulating growth and we’re happy that those embracing a plant-based lifestyle can now enjoy the deliciously real taste of Genoese REAL DIPS”, says Parkin. *IRI Quarter to 31/3/19 Pesto FMCG BUSINESS - OCTOBER 2019

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[ feature ] Mrs Rogers Organic Dried Herbs & Spices

“MRS ROGERS’ ORGANIC RANGE OF 21 TOP SELLING HERBS & SPICES IS BIOGRO CERTIFIED.”

Household shoppers are more and more concerned about where their food comes from and how it is grown. It’s not only about what they put into the mouths of their families, it’s also about taking responsibility for the health of our planet.

Proudly NZ owned and operated, Mrs Rogers has built a brand on the belief that natural flavourings and ingredients are the secret to making meals taste better.

Craig Stoddart, Director of Strategy explains: “We created the best-selling Mrs Rogers ‘Naturals’ range of Dried Herbs & Spices to provide Kiwis peace of mind that only natural herbs and spices were used, free from irradiation, additives, fillers or other nasties.

PLANT-BASED PROTEIN WORTH BILLIONS BY 2030

Plant-based protein, foods for health and wellbeing, premium products and other emerging food trends could be worth $25 billion by 2030, predicts Australia’s national science agency, CSIRO. Senior Economic Advisor at CSIRO Futures, Dr Katherine Wynn, said: “Achieving this growth will depend on continued innovation and investment by all players in the food industry.”

Key opportunities fuelling this growth include the meat alternatives market – such as plant proteins and insect-based ingredients – as well as demand from export markets with large vegetarian populations such as India. The meat alternatives market also has the potential to reduce greenhouse gas emissions and water use.

The research also shows that consumers are more willing to pay a premium for sustainable brands which could see greater environmental benefits.

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“Mrs Rogers’ Organic range of 21 top selling herbs & spices goes one step further to attain BioGro certification - NZ’s best-known guarantee that products are safe to consume and safe for our planet to grow.

“There is a higher cost to meet such stringent standards, so the Mrs Rogers Organics dried herbs and spices sell at a small premium to the Naturals range and are line priced for simplicity.

“To ensure the best taste gets to your table, we pack our organic dried herbs & spices into compostable bags that seal in the flavor and have a zip lock top for resealing. These bags are then sold inside our iconic ECO box made from 100% recycled unbleached cardboard. Biodegradable and compostable.

“Packed by us in NZ in an allergen free environment by New Zealanders for New Zealanders,” says Stoddart. www.mrsrogers.co.nz

[ health & wellness ]

WELL NATURALLY As shoppers become more conscious of the food they consume, we have seen an increase in demand for better for you products.

Nicole Irwin, Brand Manager – Acorn Group says: “Well Naturally proudly offer a variety of 45g and 90g chocolate bars to the New Zealand market which have No Sugar Added. Naturally sweetened with Stevia, Well Naturally bars disrupt traditional chocolate snacking, giving consumers a guilt free option without sacrificing taste.

“Acorn Group has seen substantial opportunity for Well Naturally by focusing the initial distribution strategy on our core range. This has been complemented with incremental growth driven from launching three new flavours in 2019: Milk Salted Caramel, Milk Chunky Peanut and Dark Coconut Rough. This mix has brought Well Naturally to a growth rate of 108.2% on year prior.

“Well Naturally growth is still largely dominated by the original Creamy Milk 45g, which continues to grow at a strong 83.1% on year prior, followed closely by Dark Chocolate Mint Crisp 45g growing at 49.7% and Rich Dark 45g at 25.8% [IRI MAT to 23/06/19].”

Irwin adds: “Observations from other markets suggests that demand for conventional confectionery has reduced and has been replaced by better for you snacking options. The turning point of this consumption trend locally has been the acknowledgement of the demand for better for you options at store level, with increased space allowances being given to Health Foods across multiple banners. With excess sugar consumption contributing to diabetes, cardiovascular disease, tooth decay and obesity, consumers are actively looking for low sugar options such as Well Naturally.”

FMCG Business Advert.pdf 1 20/09/2019 10:43:44 am

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SPECIALTY

CHEESE Becomes cream of the crop

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FMCG BUSINESS - OCTOBER 2019

[ feature ]

Samantha Firsow Market Insights Consultant Solutions & Innovation at IRI

You could say it’s been another ‘grate’ year for cheese. In pre-packaged grocery, not only is cheese the fifth-largest category, it has been the number one contributor to actual value growth (+$31.1m)1. The largest category is natural cheese and, while showing strong value growth at 6.7%, this is primarily being driven off price inflation as volumes are only up 1.8%. Natural, however, has steadily been losing share to the thriving Speciality Cheese category where value growth is 7.8% (and volume growth 8.1%)2.

New Zealanders get a taste for foreign cheese There is a shift towards cheese that’s premium, authentic and special.

As part of that, we are seeing a move towards cheese of authentic origin such as Dutch Gouda, Danish Havarti, Cypriot Haloumi or French Brie.

Hence the 10.3% value growth in higher-priced imported products.

This could be a worrying trend for local producers who currently dominate the market (71% value share) and are trying hard to create premium products styled from overseas cheeses. However, there are two considerations that bode well for New Zealand producers. The first is that the raw material of New Zealand dairy products is outstandingly good, and therefore inherently premium. They also have several inherent advantages in being local, too, from freshness to low ‘food miles’.

And second is that we see a shift to premium across the cheese board (as we witness a 0.5% decline in processed cheese). So even if the very top of the market is moving upwards, there is substantial opportunity for premium local brands to attract consumers trading up from their previous cheese choices2.

Cheese supports core values: status and experimentation Kiwis love to entertain and are offering more premium snacking options to guests. Categories that help to deliver a sophisticated, authentic, Instagram-worthy antipasto platter are growing. Whether it is dips, olives, gherkins, continental meats or, of course, the heart of the platter: speciality cheese. Because of this, retailers around the world are making deli a focal point with central cross-merchandised displays of speciality cheese with crackers, fruit pastes and wines. Manufacturers are also helping people curate their platters: take a look at ‘Build your own board

by Columbus Craft Meats’4.

Speciality Cheese hits the mark when it comes to delivering on taste experimentation, adventure and curiosity. A diverse range of Speciality Cheeses are delivering growth, with five types contributing over $1 million of growth each: Brie, Haloumi, Camembert, Parmesan and Gouda2.

Speciality Cheese category value growth is 7.8%

The health pendulum Back in the 80’s and 90’s, dietary fat was to be avoided or at least cut back on, which didn’t bode well for cheese. Increasingly, these concerns are seen as outmoded, and that cheese, butter and eggs are important parts of healthy, balanced nutrition. Could these more recent assurances be playing a part in consumers’ increasing consumption of cheese, particularly more-premium cheese?

The growing trend towards the exclusion or restriction of dairy from diets (22% of New Zealanders say they do3) also presents some challenges to the category. However, dairy-free innovation is filling this void, with the proliferation of new products in this space now worth $3.8 million, in what was an almost non-existent category in 20152.

Opportunities aplenty The rapid growth of cheese, and particularly Speciality Cheese, provides opportunities across the store, whether as: · An ingredient (cheese sauce, cheese cake, dips or dressings) · An accompaniment (pizza toppings, burgers or meal kits) · A flavour (potato snack foods, crackers or cheese twists) · A snack pack inclusion (breakfast snack, lunch snack or sweet treats) · A complementary product (partnered with crackers, cured ham or wine) · The main attraction (including as a gourmet snack such as sticks, balls, flavoured cheese).

Are you thinking holistically about how you can leverage related, highgrowth categories?

Source: IRI MarketEdge, Grocery MAT To 04/08/19 Value Sales

Value % Growth vs.

YA

Volume (tonnes) % Growth vs. YA

Natural Cheese

$259,009,216

6.7%

1.8%

Speciality Cheese

$181,513,344

7.8%

8.1%

Processed Cheese

$32,003,300

-0.5%

-0.4%

1 IRI MarketEdge, Grocery MAT to 11/08/19 2 IRI MarketEdge, Grocery MAT to 04/08/19 3 Grocery SOTI 2018 Survey 4 columbuscraftmeats.com/build-your-board/

FMCG BUSINESS - OCTOBER 2019

19

SWEET TREATS Discover new and notable ice creams and desserts.

Premium indulgences, gourmet desserts and value for money options for Kiwi families on a budget are among the hot trends that will be driving sales in our supermarkets this summer.

New arrivals in the freezer Earlier this year, premium Australian ice cream brand, Peters Ice Cream appointed DKSH NZ to distribute and market its licenced products in New Zealand.

This saw the launch of Oreo Cookie, Cone and Stick.

The brand has also recently released new Picnic, Crunchie and KitKat multipack ice cream variants.

Picnic is loaded with taste and packed with a delicious combination of peanuts, wafer and caramel, Crunchie has the traditional honeycomb flavour bar with crunchy pieces. Both are covered in Cadbury milk chocolate and chillin’ in your freezer now!

Please contact your DKSH rep for more information.

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FMCG BUSINESS - OCTOBER 2019

[ category insights ] New premium flavours The clever team at Lewis Road have launched a new range of premium ice creams in five unique flavours and made from only the finest ingredients, including whole cream from grass-fed cows.

• Three Vanillas – The exquisite blend of three of the world’s most delicious vanillas – Madagascan, Tongan and Tahitian.

• Burnt Butter & Caramel Swirl – The burnt butter sauce in this ice cream is made in a kettle on a small scale and combined with an indulgent caramel swirl.

• Double Mint & Chocolate – An evolution of its popular Mint & Dark Chocolate Ice Cream, this flavour sees its new creamy ice cream base churned with a natural peppermint extract, a hint of spearmint and shards of dark chocolate.

• Chocolate Truffle with Ganache – Creamy dark chocolate ice cream base finished with folds of decadent chocolate ganache. A chocolate ice cream for chocolate lovers.

• Dark Chocolate Noir with Raspberry Ribonette – Dark chocolate and a luxuriously tangy raspberry ribonette is folded through its parlour-perfect chocolate ice cream base.

Halo Top Sticks There’s a new stick on the block!

Halo Top Creamery has launched ice cream sticks in New Zealand — the snackable version of the same Halo Top Kiwi shoppers know and love, but now on a stick.

Halo Top Sticks are available in four delicious flavours nationwide, and weigh in at just 80-110 calories per stick. They’re also packed full of protein.

“KIWIS EAT ON AVERAGE MORE ICE CREAM PER CAPITA THAN MOST COUNTRIES IN THE WORLD.”

NEW ZEALAND’S FIRST HEMP ICE CREAM • • • • • •

HEMP SEED PROTEIN LOW CALORIE 97% SUGAR FREE VEGAN CERTIFIED LOW CARB / KETO FRIENDLY GLUTEN FREE

Gourmet Pack from Denheath Desserts A new Assorted Gourmet 6-pack Of Denheath Desserts is now available in Foodstuffs stores.

Hand made in New Zealand with a legacy family recipe unique light fluffy custard squares and cheesecake all just the way grandma made them in the café.

Lisa Templeton from Denheath Desserts explains: “We have gone out to all our customers on social media and asked them ‘what do you want in a mixed pack of Denheath’ - and this is the pack they want and have chosen. It includes two Petite Original Gourmet Custard squares, one chocolate gourmet custard square and three assorted cheesecakes.”

Denheath Desserts - as seen on Seven Sharp on TV. To place your orders contact www.denheath.co.nz or phone 0800336432.

Popular Ice Cream Cones Shane Hart, Key Account Manager at Ice-Land Group says: “Our More4Less brand of cones is based around value for money for Kiwi families on a budget.

The More4Less Cones are available in three flavours: Chocolate, Vanilla and Nut, and Mint and Choc.

“We really work hard to ensure we are offering ‘more for less’ making a bigger pack size available for less than the standard packs. This rewards shoppers for buying in bulk, results in less packaging waste and creates great value for money for shoppers.

“We have recently launched new upgraded packaging, which is really standing out in the freezers!

We have kept the retro look and feel by using pastel colours, but upgraded with better photography and made some changes to the recipe to give a creamier flavour with more indulgent tastes. We are also seeing a huge rise in Europe and overseas markets moving towards more vegetable fat based ice desserts. This is lower in animal content and easier on the gut to digest than the traditional heavy cream based ice cream.”

Hart says: “Being able to supply a 6-pack at a similar price to the most common 4-pack of cones has always been a highlight for us; it really helps shoppers who are on a budget be able to feed their family for less. Families love our More4Less products as there is always more to go around. Chocolate is always a family favourite, but Mint has been popular this year also, making a refreshing after dinner treat.”

When asked about the consumer trends in this

REFRESHED RETRO LOOK

The More4Less Cones are available in 3 flavours: Chocolate, Vanilla & Nut, and Mint & Choc For more information contact shane@ice-land.co.nz or call 021 220 1008

[ category insights ] category, Hart says: “There is always room for more innovation in any category; thinking outside the box in terms of both flavours and packaging.

Ice Cream will always be an important part of the frozen category, and as Kiwis eat on average more ice cream per capita than most countries in the world, it’s not slowing down anytime soon! Traditional flavours will continue to be in demand but shoppers are prepared to reach out and treat

themselves to something new occasionally. Indulgent flavours continue to trend, as most shoppers for this category are buying to treat themselves or the family.

“Get in touch with our friendly sales team today – contact Shane Hart shane@ice-land.co.nz or 021 220 1008.”

Source: NIELSEN SCANTRACK Total Supermarkets - MAT w/e 08/09/2019 Val Sales

Val % Chg YA

T. Total Ice Cream

233,852,387

9.2%

T. Ice Cream - Family Packs

105,242,698

17.4%

T. Ice Cream - Take Home Standard

77,849,654

2.1%

T. Ice Cream - Take Home Premium

34,712,970

5.7%

T. Ice Cream - Novelty/Singles

9,942,974

7.2%

T. Ice Cream - Take Home Health Based

6,104,091

-1.4%

T. Total Chilled Desserts

16,334,536

-0.1%

T. Ready Made Custard

10,643,242

-0.8%

T. Chilled Dairy Desserts

4,508,625

5.3%

T. Chilled Pastry Desserts

1,177,447

-11.4%

T. Jelly Desserts

5,221

-14.9%

IsoCream “Ever since IsoCream started we have heard one request more than any other – a desire for an IsoCream that remains low in sugar, low-carb, low calorie and is gluten free BUT is also dairy free,” says Hamish Macpherson, Sales Manager at IsoCream.

“Introducing IsoCream HEMP PROTEIN - our new dairy-free range available in two vegan-certified flavours - Hemp Vanilla and Hemp Chocolate. Certified vegan by the NZ Vegan Society.

“Hemp offers a healthy and tasty alternative to the sameness of coconut milk, soy and almond,” explains Macpherson.

“Scan data [to last qtr] shows sell out has been near equal to the two top dairy flavours.

“With over 100 stores ranged – get onboard for summer now!” says Macpherson.

See the full range at IsoCream.co.nz.

FMCG Business produces a monthly snapshot of category news and highlights, based on information from participating clients and Nielsen data available at time of print. To showcase your products in upcoming category reports, please contact trubanowski@intermedianz.co.nz.

NEW

and chillin’ in the freezer.

CADBURY, CRUNCHIE , PICNIC and THE COLOUR PURPLE are trademarks of Mondelēz International group used under license.

[ cover story ]

A POLARISING

OFFER

Ever since Manuka Doctor decided to offer a ‘FREE PALLET’ promotion for Manuka Doctor, they have been met by two different trains of thought.

1. Where do I sign up?

2. Why are you offering me free product?

“The latter reaction is somewhat of surprise, as we thought buyers would jump at the opportunity,” says Aeneas Hall from Manuka Doctor (International) Limited. “With a little digging, we found that some buyers were apprehensive because the train of thought was that: 1. The deal is unsustainable 2. We were bringing down the value of the category 3. S uch and such (insert competitor brand or expert customer) told us that multifloral mānuka is not genuine.

“So, let’s dispel these notions. This promotion is here to stay for the foreseeable future. Smart harvesting and buying, mainly for our export markets, has seen our supply of honey remain constant and bountiful, which affords us the ability to supply and offer it to our retail customers. After being in this industry for a few years now and trying a myriad different promotions and promotional offerings, the general feedback from stores is that they want the best price for their customer…. and that’s what we’re offering.

“The third point is also very contentious, as it seems that (from experience), multiple complaints in the market have stemmed from anticompetitive conduct from competitors. For example some retailers have received correspondence from a competitor using the pseudonym Robert/Roberta Fisk who attempts to fraudulently mislead the retailer into believing that multifloral manuka is not genuine. Fortunately, this misinformation is the easiest to dispel as there is a whole government 24

FMCG BUSINESS - OCTOBER 2019

webpage that outlines the New Zealand law on exactly what multifloral mānuka is.

“Currently, mānuka honey being sold domestically does not need to meet the export standard. So, whilst the honey may be labelled as mānuka, the product may still not be eligible for export as monofloral or multifloral mānuka honey.

“As a company, Manuka Doctor decided that we would adopt these standards wholesale as we are well aware that most of the honey that we sell domestically is most likely destined for overseas.

So, the products we sell domestically are labelled according to the legal export standard and will meet the necessary criteria. We have developed a range of products that span from our 40+, 85+ and 100+ multifloral mānuka honey to our 250+, 550+, 700+, 850+, 970+ and 1050+ monofloral mānuka honey.

“To give our customers confidence in what they are buying, we have set up a ‘Track My Batch’ page on our website, which allows you to enter in our batch numbers and retrieve the MGO and MPI marker reports for any given batch.

This function is still being populated, so, if a batch doesn’t show, just get in touch and we can upload the files.”

“If your goal is to increase sales and decrease costs, get in touch and see what we can do for you,” says Hall.

For more information or to place orders email aeneas@manukadr.co.nz or chanray@manukadr.co.nz

“TO GIVE OUR CUSTOMERS CONFIDENCE IN WHAT THEY ARE BUYING, WE HAVE SET UP A “TRACK MY BATCH” PAGE.” AENEAS HALL, MANUKA DOCTOR LIMITED

[ good business ] Improve food safety and quality

ONE PLANET BUSINESS FOR BIODIVERSITY

COMPLIANCE

CCP

Nineteen forward-thinking, agriculturecentric companies, together with the World Business Council for Sustainable Development (WBCSD), launched a new initiative to protect and restore biodiversity within their supply chains and product portfolios. This coalition – named “One Planet Business for Biodiversity” (OP2B) – was formally launched at the United Nations Climate Action Summit by Emmanuel Faber, Chairman and CEO of global food and beverage company Danone.

In addition to Danone, OP2B members include Barry Callebaut, Google, Jacobs Douwe Egberts, Kellogg Company, L’Oreal, Mars, Migros Ticaret, McCain Foods, Nestlé, Unilever and Yara. The 19 companies sell products in more than 120 countries and have combined total revenues of about US$500 billion.

Nestlé says it has joined the coalition to take bold actions in protecting and restoring biodiversity. Nestlé and other member companies share strategic interests in agriculture and recognize the urgency to drive transformational change in the food and agriculture systems, for the benefit of the people and the planet.

Over the past decades, the agricultural system focused on efficiency and productivity to meet the needs of the world growing population. This affects loss of

diversity on farms, loss of ingredient diversity in diets, and degradation of ecosystems.

Mark Schneider, Nestlé CEO, said: “Nestlé believes that protecting and restoring biodiversity is essential to safeguard food production and food security now and for the future. Nestlé has for many years worked with farmers to manage their land sustainably and will continue to lead activities enhancing biodiversity”.

Restoring and protecting ecosystems To achieve its goal, the OP2B initiative has identified three focus areas: scaling up regenerative agriculture practices to protect soil health; using product portfolios to boost cultivated biodiversity and increase the resilience of the food and agriculture systems; eliminating deforestation, enhancing the management, restoration and protection of high value ecosystems.

Nestlé has intensified its activities with farmers to ensure the responsible sourcing of its raw materials and it has made significant progress towards its zero deforestation goals. As Nestlé accelerates its climate change efforts, the company will scale up initiatives in agriculture to transform its value chains through land restoration, replanting trees and enhancing biodiversity. https://op2b.org/

SPOT CHECKS FOR YOUR CCP’S

Quality Safety

IMPROVE QUALITY SUPERMARKET

END-TO-END TRACEABILITY

INCREASE EFFICIENCY

Contact us today! +64 (9) 274 7014 sales@imonitor.co.nz www.imonitor.co.nz OP2B members at the United Nations Climate Action Summit

FMCG BUSINESS - OCTOBER 2019

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[ good business ]

WHAT BUSINESS ARE YOU IN?

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

This is a simple but revealing strategic question. If you ask most business-people, they will typically answer in terms of what they do. They’ll say they’re in banking, or they make cleaning products, or flooring, or they make frozen desserts. No doubt you have your equivalent answer.

There is nothing inherently wrong about describing your business in this way. But there is a better way.

You see, looking at your business in terms of what you do immediately frames your thinking according to your category context and a supplycentric perspective.

A more strategically fertile way to look at the business you are in is from a customer-orientation.

This means defining your business in terms of why people buy your products and services, and what needs you satisfy.

For example, at Energi our supply-centred perspective is that we are in the shopper marketing category and we provide things like promotional campaigns, packaging and merchandising. In contrast, the customer-centred perspective is that we ‘create demand for our clients’. We help clients attract shoppers, understand and influence shopper decision-making, make their products more desirable, and cultivate shopper loyalty.

In a similar way, the customer-orientated perspectives of the earlier examples are:

Supply-centric Perspective

Customer-centric Perspective

Banking

Money management – people need products and services to manage their money

Cleaning products

Home hygiene – people need products to keep their homes clean and healthy

Flooring

Home comfort – people need to make their homes comfortable and aesthetically appealing

Frozen desserts

Sweet treats – people want sweet treats to complete a meal

“WHY DO PEOPLE BUY WHAT YOU HAVE TO SELL?”

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There are two significant benefits to be gained from defining your business in a customer-centric way.

1. More empathetic and relevant for shoppers.

Understanding how you fit into your customer’s world and what they need provides essential clues for how to make your products and services more desirable.

2. Better for differentiation and innovation. If you only define your business by your category or supply-centric perspective it is easy to be drawn into SKU match-racing and being stuck in ‘me-too’ category conventions.

The world of grocery has not traditionally lent itself particularly well to customer-orientation. Most categories are driven by supply-centred lineups

FMCG BUSINESS - OCTOBER 2019

of SKUs. Logic, order and planogram efficiency reign supreme.

But there are some exceptions to call out where clear thought for shopper needs and desires are apparent.

Fresh pasta At our local New World there is a very shopperfriendly approach to fresh pasta. Simply lining up the different pasta and sauces together presents the range as a system. If you fancy a pasta night it is all there in front of you.

Salads Salads have come a long way with innovation in recent times. There is now a full array from traditional raw ingredients, to partial mixes and value-add additions to spice things up with seeds, dressings and vegetable noodles, right through to ready to eat.

Small goods There has been an explosion of innovation in small goods. Packaging now offers lunchbox-friendly portion-controlled packs. The burgeoning range of value-added flavours and product formats such as tandoori shredded chicken, or packs of mini chorizo is great.

Online Online platforms have the potential to provide powerful shopper-centric experiences customised to the individual. Countdown’s site is evolving very well in this respect. It is merging the strength of limitless shelves, with clever chunking and organisation of content in different ways that line up with shopper needs and desires – meal ideas, specials, particular meal occasions as well as referencing the shopper’s preferences and previous shopping behaviour.

So then, what business are you in?

Why do people buy what you have to sell?

What needs do you satisfy?

[ profile ]

NOW EVERYONE CAN PRODUCE GREAT ARTWORK!

For many marketeers, making small or straight-forward changes to artwork has been a laborious and often expensive exercise. Changes have needed to be briefed to the agency, who then brief their studio – probably with a bit of to-andfroing – and then there’s a painful bill.

But now a New Zealand company, has created Artspec, a revolutionary cloudbased design portal which enables anyone within a business to change and despatch studio quality, brand compliant artwork in minutes.

Artwork changes have finally become intelligent Artspec can work with your agency or design studio’s existing campaigns, Adobe InDesign or Illustrator files and adds intelligence, including variables and drop-down menus which allow anyone you authorise to make changes.

Changes can be made from anywhere in the world. Advertising or packaging can be adapted to the local language, currency, addresses and

local creative and then proofed by locals who really understand their market.

Frequent changes to packaging contents, sizes and recipes can cause real headaches.

But with Artspec, the product owner or food technologist can quickly update the artwork and submit it for approval.

Including new barcodes or QR codes.

Imagine how you can benefit by having a play with Artspec’s online demo www.artspec.design/trial Bill McSherry, Artspec CEO explains. “At the end of the day, technology should be making the mundane simpler and faster and less costly. Artspec gives you the freedom to react and change to a fastchanging market whilst maintaining the design elegance you’ve paid for.

That’s definitely a win, win.”

With scaled subscription fees based on usage, Artspec is an easy decision for companies of all sizes.

For further information contact bill@brandspec.design or visit www.artspec.co.nz

Change your artwork in the time it takes to read this.

“Artspec was born from the need to make modern advertising more effective. We’ve changed the roadmap from slow and costly, agency-driven production to fast, effective local marketing.”

Bill McSherry, Artspec

Have a play with the free online demo

FMCG1019

www.artspec.design/trial

FMCG BUSINESS - OCTOBER 2019

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[ FGC ]

SAFE IN THE SUN

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

“THE MESSAGES ABOUT SUN SAFETY NEED MORE PROMINENCE.”

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Slip-Slop-Slap was a popular sun-care campaign known by those generations who remember the 1980s. It came with a catchy tune and a cute bird mascot, and the message was so simple that small children could understand it. Years later the word ‘Wrap’ was added, as in wrap-around sunglasses.

Today more than ever, the use of sunscreens is vital under the harsh suns of New Zealand and Australia. And not just when the sun is shining – every day.

Despite clear instructions and media campaigns by manufacturers or health promotion campaigns such as the Health Promotion Agency’s ‘Avoid #Dumburn’ digital campaign, many Kiwis don’t know how to apply sunscreen correctly.

There are regular stories in the media about sunburnt people who usually profess to have applied sunscreen to the letter of the instructions. The photos of sunburn, particularly of children, are wince-worthy.

The makers of sunscreen are between a rock and a hard place in responding to such cases because they usually are forced to comment before they have all the facts, and of course want to make sure they are empathetic to those in sunburn pain. What is usually found to be the case – but never covered in any follow-up story – is that there are other factors: the sunscreen might be years old and out of date (yes, it goes out of date), it might have been left on a hot dashboard (temperature is important), the

FMCG BUSINESS - OCTOBER 2019

proper amount wasn’t applied (companies can tell by the amount returned in the tube), re-application was insufficient, or there was just too long spent in the sun.

SunSmart advice Though it seems like a simple process to apply sunscreen, there are some watch-outs that most of us would benefit from remembering.

When I looked at New Zealand’s SunSmart advice at sunsmart.org.nz (which is run by the Health Promotion Agency), I soon realised I fell into the “more to learn” category. For example, SunSmart advises one teaspoon of sunscreen should go on each arm and leg. That’s a lot of product needed to protect ourselves from New Zealand’s harsh rays.

And sunscreen should be applied 20 minutes before going out in the sun and then reapplied every couple of hours, and particularly after swimming.

The messages about sun safety need more prominence than they get, but I’m not surprised that only the bare minimum is possible given there’s only around 11 cents per New Zealander spent on spreading the message through taxpayerfunded campaigns.

Consumer NZ’s regular (the Food & Grocery Council would say unfair) criticism of sunscreens pops up each summer like a hardy annual. But rather than reaffirm the message of the importance of being safe in the sun, its annual testing and debatable results tend to leave consumers confused and feeling that sunscreens can’t be trusted.

The reality is that in New Zealand, and globally, the manufacture of sunscreen is highly sophisticated and complex. Products are tested against stringent standards, and in New Zealand they must meet many different cosmetic and commercial laws.

This year, the Food & Grocery Council, Cosmetics NZ, and retail partners are working together alongside member companies, including Nivea, Banana Boat, Johnson & Johnson, L’Oréal, and the Cancer Society, to talk about improving testing regimes and how they can do more to spread the message about sun safety. Many lives depend on making sure we are all more sun smart.

[ export ]

QUINTESSENTIALLY KIWI Spring Sheep Founder Scottie Chapman says all the clichés about succeeding in business are true.

“It’s always going to be harder than you imagined but you absolutely have to keep going. Failure is Spring Sheep Founder just learning on the Scottie Chapman way through.”

He started the sheep milk production company in 2015 after spotting a gap in the dairy market.

Despite the barriers and doubters, Spring Sheep quickly gained traction, with word of the nutritional and environmental benefits spreading.

The company has established distribution agreements in Taiwan, Malaysia, Vietnam, South Korea, Singapore and China. Its infant formulas will be launching in New Zealand and Australia soon.

Last year, it achieved $3 million turnover, with growth in genetics, farm systems, products and customers.

“Sheep milk is a quintessential Kiwi product which offers a high value add to overseas markets and that’s the opportunity that we saw,” Chapman says.

“There are very few agricultural businesses that offer a non-commodity style product that is scalable like sheep milk.”

Chapman says Spring Sheep’s target consumers are parents because in the first 1000 days of life milk is the foundation of their nutrition, and cow’s milk can be hard for babies to digest.

Sheep milk can also be up to 50% less harmful on the environment than traditional dairy.

Support He is thankful for the support Spring Sheep has received from varied groups including government and investors.

“Kiwis love innovation in agri-business and have fully supported our push to create another branded agri-business in NZ.” Several government organisations have played a role in Spring Sheep’s development including MPI (through the Primary Growth Partnership Fund), AgResearch, Riddet, Massey University and NZTE. Dairy companies like Fonterra, Synlait and Tatua have also been a great source of encouragement, Chapman says.

“Any questions we have they are always open to help us out. This collaboration is fantastic.”

The Kiwi benefit Chapman says consumers often use country of origin as an “extrinsic cue” for inferring product quality. He says New Zealand’s food safety standards, quality control and environmental protection practices are some of the highest in the world. As such, there is often a level of inherent safety and trust in Spring Sheep’s products.

“This has advantages, especially with consumers who are purchasing high-risk, high-involvement products, such as our infant formula.

“Mothers want to know that any product they feed their child is safe, high quality and that they can trust it. As long as you have premium products and strong margins, New Zealand is a great country to export from.”

Catherine Beard is Executive Director of ExportNZ, which serves its members via regional offices throughout the country.

To find your nearest office go to www.exportnz.org.nz

“NEW ZEALAND IS A GREAT COUNTRY TO EXPORT FROM.” SPRING SHEEP FOUNDER SCOTTIE CHAPMAN

Overcoming hurdles It hasn’t been an easy ride for the enthusiastic entrepreneur.

“We face lots of challenges. Challenges in production, market access, product and many things in between. In business there’s always challenge.

How you solve them is dependent on your people and how well they work together.”

He says communication within the company has been “extremely important” to overcoming the hurdles. “Having ingrained company values is also helpful because in times of challenge, you can come back to in them and work from them. Challenges happen every month.

“You need to keep teams small and tight because once they get big you have bureaucracy, and that often means you can’t be nimble.”

FMCG BUSINESS - OCTOBER 2019

29

[ legal advice ]

VOIDABLE TRANSACTIONS

David Hoskin is a Director at Steindle Williams Legal leading the litigation team. swlegal.co.nz

30

Vigorously pursuing slow paying debtors does improve prospects of receiving payment. It follows that a creditor that puts the most pressure on a debtor will most likely receive payment before other creditors.

When dealing with a company that is insolvent, and receiving payment for overdue accounts from a debtor that subsequently goes into liquidation, a creditor should be aware of the voidable transaction regime (claw backs by liquidators).

In an insolvent liquidation, unsecured creditors are treated equally and the company’s assets are shared on a pro rata basis.

Some business owners will have received a letter of demand from a liquidator setting out that a company it provided goods or services to has failed and they want you to repay funds received. It has become more common for suppliers and others to be challenged by liquidators to repay funds that they have previously been paid.

Liquidators are able to set aside, or apply to the Court to have set aside a voidable transaction. Section 292 of the Companies Act 1993 provides that a transaction is voidable by the Liquidator if: • It was made by the company at a time when it was unable to pay its due debts;

FMCG BUSINESS - OCTOBER 2019

• It enables a creditor of the company to receive more towards the satisfaction of a debt than what the creditor would receive in the company’s liquidation; • It was made within the two years prior to the company’s liquidation or the application to liquidate the company.

The definition of “transaction” is broadly defined and includes the payment of money, the transfer of assets, and also the incurring of an obligation. There is a presumption that the company was unable to pay its due debts if the payment was made within the six month period (the restricted period) to the company’s liquidation (or prior to the filing of the application to liquidate the company).

A Liquidator who intends to set aside a transaction as being voidable is required to serve a notice on the creditor. The creditor has 20 working days from being served to oppose in writing to the Liquidator the decision to set aside the transaction. If the creditor fails to object within that period, the transaction automatically is set aside. This is the statutory time period which the Court has no power to extend retrospectively. If the Liquidator receives a valid notice of opposition, he or she can then elect whether to issue an application in the High Court seeking the Court to set aside the transaction as being voidable.

There is no longer a “defence” that the transaction was undertaken in the “ordinary course of business”.

All insolvent transactions (as defined) that have been made by the company during the specified period are open to challenge by the liquidator.

A creditor may oppose a notice to set aside a transaction. Where a continuing business relationship can be established (such as where there has been a running account), it is necessary to treat all individual transactions between the company and a creditor as a single transaction thus limiting, and in some cases, defeating the liquidators’ rights of recovery.

A transaction will not be set aside if the creditor received payment in good faith, in circumstances when a reasonable person in the creditor’s position would not have suspected and the creditor did not suspect that the company was or would become insolvent. This includes factors such as an ongoing contract or business relationship at the time of payment, whether it is common practice in the industry for delays in payments, evidence and knowledge of credit concern, and the nature of payments and trading history.

The consistent use of proper terms of trade, normal timely debt collection procedures, and asset protection mechanisms may protect a creditor from successful insolvent transaction challenges by a liquidator.

[ events ]

HUNT FOR NZ’S TOP SAUSAGE

NEW ZEALAND FOOD AWARDS 2019 FINALISTS Who will be named the Supreme Winner?

The Devro Great New Zealand Sausage Competition has kicked off, with the first of the category judging sessions completed.

The competition has attracted a record 515 entries from 96 stores across 13 categories this year, which resulted in over 3,000 sausages going through the taste test with a panel of expert industry judges.

All entries are carefully examined and tasted by a team of judges who give marks for appearance, aroma, taste and texture.

Along with some of the traditional types of sausages such as beef, pork and poultry, this year has also seen some creative entries such as ‘the Ultimate Cheeseburger’ sausage; a ‘beef, marmite and cheese’ sausage; and a ‘pork and peanut butter’ sausage.

Judging of all entries took place at Retail Meat NZ in Auckland and the top sausages from each category were then presented for the Supreme judging day on Wednesday 25 September.

The awards presentation will take place in Auckland on Thursday 17 October.

New World Te Rapa, Hamilton and Westmere Butchery, Auckland both won the Supreme Award at the Devro Great New Zealand Sausage Competition last year. The judges couldn’t decide between Westmere Butchery’s beef and mushroom sausage and an Angus beef sausage from New World Te Rapa, instead crowning them joint winners of the Supreme Award.

www.foodawards.co.nz

The New Zealand Food Awards winners will be announced on 23rd October.

WHAT’S ON OCTOBER

31 OCTOBER-3 NOVEMBER TASTE OF AUCKLAND Queens Wharf, Auckland, NZ www.tasteofauckland.co.nz

5-9 ANUGA Cologne, Germany http://www.anuga.com/ 5-6 CHOCOLATE & COFFEE SHOW The Cloud, Auckland, NZ www.chocolatecoffeeshow.co.nz 1-7 CHOCOLATE WEEK New Zealand nationwide www.nzchocolateweek.co.nz 17 DEVRO GREAT NZ SAUSAGE COMPETITION Winners announced Auckland, NZ 18 WORLD CHEESE AWARDS Bergamo, Italy 23 NZ FOOD AWARDS Powered by Massey University Auckland, NZ https://www.foodawards.co.nz/ competition-info

15

15

NOVEMBER 6-8 FGC CONFERENCE Melbourne, Australia https://www.nzfgc-conference. com/ 17 TOAST MARTINBOROUGH Martinborough, NZ https://toastmartinborough.co.nz

2020 FEBRUARY 2-5 ISM COLOGNE Cologne, Germany https://www.ism-cologne.com/

Visit the websites and contact the event organisers for further details and updates.

To have your event listed in FMCG Business email: trubanowski@intermedianz.co.nz.

FMCG BUSINESS - OCTOBER 2019

31

HIGHLIGHTS The inaugural C&I Expo New Zealand was held from 18-19 September at The Cloud on Auckland’s waterfront.

“Over 1,295 people attended the 2019 C&I Expo NZ and we welcomed buyers from several retail groups –Night ‘n Day, Red Circle, Foodstuffs, Z Energy, Gull, Challenge and BP. Over 65 exhibitors showcased the latest new products across confectionery, drinks, snacks, vaping, merchandise, point of sale and forecourt equipment,” said the Publisher and Sales Director of C&I, Safa de Valois.

“We received excellent feedback from attendees and exhibitors from our first C&I Expo in the New Zealand market and based on our reader survey a majority of attendees from this year’s event have demanded an annual exhibition.

“We are very grateful for the support from Dave and Michelle Hooker from the New Zealand Association of Convenience Stores (NZACS) and the NZACS Board for their support. The two-day Symposium was a full house on both days as attendees learned from six industry experts in Australia and New Zealand.

“The C&I Expo was pleased to support the hard-working team at KiwiHarvest who collected unused food and goods to distribute to charities and community groups across Auckland at the conclusion of the event.

“Thanks to everyone who attended this year’s C&I Expo and we look forward to seeing you again soon,” Mr de Valois said.

According to the

ORGANISED BY

Interpoint Events Pty Ltd in conjunction with C&I Media Pty Ltd and the New Zealand Association of Convenience Stores.

41 Bridge Road Glebe NSW 2037 Australia Ph: 0800 455 785 Fax: +61 2 9660 4419 Email: exhibition@c-store.com.au www.c-store.com.au

32

FMCG BUSINESS - OCTOBER 2019

executive director of the New Zealand Association of Convenience Stores, Dave Hooker, the partnership with the inaugural C&I Expo exceeded expectations.

“Given this was a first in New Zealand, it was important for our Association to make it successful for members, retailers, suppliers and exhibitors. Historically NZACS members have travelled offshore to attend other expos, however it is more relevant to have our own country’s suppliers exhibit and have the opportunity to meet retailers, showcase new products and discuss future business relationships.

“It took two years in the planning and one year to organise. NZACS worked closely with the team from C&I as we wanted to offer support and assistance where ever we could to make this event a success.

“The two morning business sessions with speakers from Australia and New Zealand provided a great platform to launch the show each day. NZACS received very positive feedback from both our retailers and suppliers and for the first time they had a much bigger audience than before.

“Attendee numbers were above expectations and NZACS viewed the event as a real success despite the challenges that the prior weather and ongoing construction work adjacent to the venue threw at us. We were appreciative to C&I and Intermedia for their exceptional service, assistance and experience in staging event such as this.”

In partnership with

What the attendees said:

“As a wholesale distributor we found the NZ C&I Expo well worth attending as it was not only an excellent opportunity to make contact with some potential new suppliers for us, but we were also able to chat to our customers that were also visiting.”

Amy Siefert, Operations Manager at Ace Distribution

What the exhibitors said:

“Our brands felt it was one of the best Trade Shows they had attended. The App was amazing – great for sharing contacts. It was very well organised and managed – all of the C&I staff were extremely helpful. We will definitely attend the next one – we will have more of our brands and a bigger space.”

Richard Kirby, Channel Manager – Wholesale & Impulse at Twin Agencies “It was great to be part of the first C&I Expo in New Zealand. It gave Frucor Suntory a great platform to show its portfolio of products as well as launching two massive new products – the new V Energy flavour V Forbidden as well as creating a whole new segment with RTD Iced Coffee and the launch of BOSS Coffee. It was a great show that was well attended for its first year and look forward to seeing it grow over the coming years. I would recommend any Supplier or Retailer that is in the Petrol & Convenience, Route or Food Service Channels to be a part and attend this expo.”

Daryl Webster, National Account Manager – Petrol & Convenience at Frucor Suntory

“Finally, New Zealanders don’t have to travel over the ditch to experience the annual C&I Expo any longer. After attending two previous C&I Expos in Australia with our sister company Pacific Optics Australia, I was excited to be part of the inaugural NZ C&I Expo. I jumped in with both feet and committed to the most prominently located exhibition area at a very early stage and then crossed my fingers hoping that suppliers and retailers would support this event. I was over the moon when I heard that over 1200 visitors had signed up to attend the two-day event.

The Auckland weather turned it on for all involved and this helped put a spring in everyone’s toes before the first visitor walked through the door.

“It was a fantastically run event that gave us the opportunity to showcase our current offer as well as gauge retailer’s appetite for new categories and products. As a P&C specialist supplier, we even had the opportunity to show our portfolio to grocery buyers.

Overall, I would highly recommend more suppliers and retailers to jump on board next year.

Andrew Poore, General Manager, Signature Marketing NZ

FMCG BUSINESS - OCTOBER 2019

33

Creating A WOrlD Where peOple & nAture thrive in hArmOny The Rainforest Alliance is an international non-profit organization working at the crossroads of agriculture, forests, and business. By bringing diverse allies together, we're catalyzing change on some of the most pressing social and environmental issues of our day.

Our glOBAl reACh We work with farmers and forest communities in

60+ COuntries

We work along the entire supply chain to make responsible business the new normal: amplifying the voices of farmers and forest communities, improving livelihoods, protecting biodiversity, and helping people mitigate and adapt to climate change.

Armed with the expertise and longstanding partnerships of two leading international sustainability organizations that joined forces in early 2018—the Rainforest Alliance and UTZ—we’re implementing proven and scalable solutions on the ground while testing innovative ways to drive change.

1.

We work with farmers and forest communities to advance environmentally, socially, and economically sustainable practices. These include climate-smart agriculture, community-based sustainable forest enterprise development, financial planning, improved working conditions, and the conservation of vital natural resources.

2.

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Products with the Rainforest Alliance seal or UTZ label available in

130 COuntries

We support farmers and forest communities with innovative training, data tools, and technical assistance so they can meet our rigorous sustainability standards, based on these best practices. We are working with our partners to re-imagine certification as a journey of continuous, data-informed improvement rather than a binary pass/fail model.

We guide companies and consumers along the entire supply chain on their sustainability journey: transforming business practices, cultivating consumer demand for more sustainable products, and incentivizing farmers and foresters to adopt best practices.

2 milliOn+ fArmers

lAnDsCApe COnservAtiOn highlights guAtemAlA 500,000 ha

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earned by indigenous and forest communities through our sustainable forest enterprise initiatives

Our alliance needs you, whoever you are and wherever you stand.

By joining forces with farmers, companies and consumers, we can transform our relationship with the land and forests we rely on. We can make that relationship work better for all.

fOr mOre infOrmAtiOn ABOut Our WOrK, visit rAinfOrest-AlliAnCe.Org

COnsumer reACh 498,000

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APRIL 2019

* 2018 combined data for the UTZ and Rainforest Alliance certification programs, accounting for farms with double certification.

Out & About

Celebrity food writer Annabe l Langbein and Mike King at th MC e Grocery Char ity Ball auction raising funds for , Motorneurond isease NZ.

up explore their The Tasman Bay Food Gro Split Apple nd arou as wak on backyard exercise. ding buil team a of Rock as part

Delwyn Lewis (Sales Manager Rainbow Confectionery) and Ben Curtis (National Sales Manager C&I Media) at the C&I Expo in Auckland.

The Brothers Green, aka Brad Lake and Brendon McIntosh, have just released their award-winning, hemp-based snack bars in New World supermarkets.

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 20 boxes of L’OR Origins Collection espresso capsules worth $160.

SNAP & WIN!

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

FMCG BUSINESS - OCTOBER 2019

35

NEW ZEALAND’S LARGEST LIQUOR AUDIENCE

OCTOBER 2019 | www.theshout.co.nz

PASK LAUNCHES A FRESH LOOK THIS SPRING

CHARDONNAY PALE ALE NEWS AND EVENTS

contents

october2019 The Shout Editor, Charlotte Cowan

WINING UP

With spring finally here and the rain (hopefully) behind us, it’s time to start thinking about what we’ll be drinking this summer. In this issue, light and bright wine reigns supreme with Rosé hitting the news with big wins at the New World Wine Awards on pg 4. Plus, while Sauvignon Blanc is known to be the go-to for sipping on in summer, Master Sommelier Cameron Douglas tastes some delicious Pinot Gris and Chardonnay options on pgs 10-13. And if a cold brew is more your style, John Oszajca explores the best options for a tantalising Pale Ale on pgs 16-17.

And a big congrats to John on the birth of his gorgeous new baby girl, Rainey. Don’t forget to pick up a copy of our huge summer bumper issue next month featuring the best bubbles, awesome Australian wines and a massive Christmas gift guide!

Cheers!

4 INDUSTRY NEWS AND INSIGHTS 9 INTRODUCING PASK INSTINCT

16

The newest release from the Hawke’s Bay winery

10 PINOT GRIS AND CHARDONNAY

Tasting notes from Cameron Douglas MS

10

9

14 HOW TO BREW SUCCESS Q+A with specialist beer accountant Maria Pearman

16 ALE’S WELL THAT ENDS WELL

John Oszajca takes a look at the tasty style of Pale Ale

4

14

NEW ZEALAND’S LARGEST LIQUOR AUDIENCE

COVER STAR: OCTOBER 2019 | www.theshout.co.nz

PASK INSTINCT

PASK LAUNCHES A FRESH LOOK THIS SPRING

CHARDONNAY PALE ALE NEWS AND EVENTS

From Hawke’s Bay wine producer and founding grower for the Gimblett Gravels region, Pask, comes the newest range of wines, entitled Instinct.

Drawing from more than 35 years’ winemaking experience, the Instinct range features six varietals that deliver distinctly New Zealand flavours.

For more, head to pg 9.

EDITOR’S PICKS

PUBLISHED BY The Intermedia Group Ltd 505 Rosebank Road, Avondale Auckland, 1026, New Zealand ph: 021 361 136 Managing Director-Publisher Dale Spencer dspencer@intermedianz.co.nz Editor Charlotte Cowan ccowan@intermedianz.co.nz ph 021 774 080 Sales Director Jaqueline Freeman jfreeman@intermedianz.co.nz ph 021 286 7600

1 PALLISER ESTATE OM SANTI VINEYARD MARTINBOROUGH CHARDONNAY 2018 Scored 95 points by Cameron Douglas MS and described as a complex yet youthful bouquet of Chardonnay with aromas of clove and vanilla scented wood smoke, this is a weighty wine with a decent level of acidity, precise measure of oak and long finish. For more top Chardonnay choices, head to pgs 12-13.

2 DOMAIN DEFIANCE CENTRAL OTAGO PINOT GRIS 2019 Produced using grapes from the Defiance Vineyard where miners once hunted for gold, this Pinot Gris has a creamy texture, balanced acidity, good levels of complexity and a long lingering finish. For other picks for a delicious Pinot Gris, check out pgs 10-11.

3 BEHEMOTH ‘MURICA APA Brewed using predominantly Riwaka hops from Nelson, supported by a couple of American hop stars; Amarillo and Citra (and a handful of specialty malts) ‘Murica is a refreshing light amber American Pale Ale that will quench your thirst on a hot day.

For more Pale Ales, head to pg 16-17.

For more amazing liquor news (and even a few giveaways), make sure you follow us on Instagram and Facebook @theshoutnz and sign up to our fortnightly eNewsletter at www.theshout.co.nz.

FOLLOW US

THE SHOUT NZ – OCTOBER 2019 3

news

Rosé reigns at NWWA 2019 The rise of Rosé shows no signs of slowing after a record-breaking year at the 2019 New World Wine Awards.

Nine Rosés - including seven still and two sparkling - earned a place in the New World Wine Awards Top 50, and more than 70 Rosé wines won a medal in the competition overall.

“This was a phenomenal year for Rosé, and one that broke every record in our book,” says Chair of Judges, Jim Harré.

“Not only did we receive more Rosé entries than ever before – with 110 wines from all over the world, the quality was exceptional, earning the most medals for Rosé in the awards’ history.”

The Champion Rosé for 2019 was awarded to Madam Sass Central Otago Pinot Noir Rosé 2019 and other winners included Allan Scott Rosé 2019, Babich Marlborough Pinot Noir Rosé 2019 and The Doctors’ Rosé 2019.

The Top 50 winning wines are on shelves in liquor-selling New World stores nationwide now. All are available for under $25, and more than half are under $15.

For a full list of winners, head to newworld.co.nz/wineawards.

WHAT’S ON October 17-19 BREWNZ 2019 Wellington www.brewersguild.org.nz October 19 INTERNATIONAL GIN & TONIC DAY October 25 NZ INTERNATIONAL WINE SHOW AWARDS DINNER Auckland www.nziws.co.nz October 31-November 3 TASTE OF AUCKLAND Queens Wharf www.tasteofauckland.co.nz/ November 16 THE NEW ZEALAND CIDER FESTIVAL Nelson www.nzciderfestival.com/ November 16 NEW ZEALAND WINE OF THE YEAR AWARDS DINNER Blenheim www.nzwine.com

sponsored

Rockburn releases the first Kiss of summer Central Otago boutique producer Rockburn Wines has released its highly anticipated Stolen Kiss Rosé.

As one of New Zealand’s first premium Rosé producers, Rockburn has been a trendsetter in the category for years, while keeping a close eye on consumer demands.

Just like Kiwis’ palates, Stolen Kiss Rosé is evolving and this year the team at Rockburn crafted a drier and lighter style for wine lovers to enjoy as “the first kiss this summer”. While the 2019 vintage has a Provence-inspired, peachy look, its flirtatious and fruity character certainly hasn’t changed.

With a delicate cherry perfume, followed by a sensual strawberry kiss, Stolen Kiss leaves you with a feeling of pure pleasure and delight.

Awarded 90 points by Cameron Douglas MS, Rosé lovers need to be quick, as the limitededition wine usually sells out by the end of summer.

Stolen Kiss Rosé 2019 will be available in selected fine wine stores and restaurants, the Rockburn Cellar Door, and online via www. rockburn.co.nz (RRP $30.50 750ml bottle and $69 limited edition magnum).

4 THE SHOUT NZ – OCTOBER 2019

Enjoy Responsibly Altos Plata and Altos Reposado are distributed by Pernod Ricard New Zealand. Contact your Territory Manager to find out more.

industry insights

Cellarbration More than ever before, tourists are arriving in New Zealand with the objective of checking ‘visit a New Zealand winery’ off their ‘To Do’ list. Wine tourism is on the rise in New Zealand. Of all international holiday visitors, 23% visit a New Zealand winery, and in 2018 we had 776, 599 visitors who spent more than $3.2 million. The international wine tourist is spending more, staying longer and visiting more regions than the average visitor.

There are over 250 wineries offering more than 400 wine tourism experiences in New Zealand, with services ranging from cellar doors with tastings, private wine tasting experiences with winemakers, vineyard tours, to restaurants and luxury accommodation. The experiences available are highlighted on nzwine.com/visit, and broken down into four separate segments – Sip, Dine, Stay and Play. Each section shows what is on offer in each region, by winery, and is a very handy tool for people to use if they are wanting to plan a stay featuring a wine experience.

But the wine tourism experiences on offer are not just for those visiting from offshore.

Following the success of NZ Winegrower’s inaugural Cellar Door Day

Keri Edmonds Wine Tourism Manager, New Zealand Winegrowers

last year, where more than 70 cellar doors participated, we will be launching ‘Cellarbration’ as a weekend long event over Labour Weekend (26-28 October). The key objective of this initiative is to increase domestic tourist visitation to our local cellar doors and wine tourism experiences. We are encouraging Kiwis to get out and about, and experience cellar doors in their own backyard, or to escape the hustle and bustle of the city and travel to another wine region for a weekend cellar door experience.

Across New Zealand, local wineries will throw open their cellar doors to celebrate this annual event, with special offers including cellar door discounts, food and wine pairings, tastings of library wines, vertical tasting and special.

Keep an eye out on social media on @nzwinegrowers and #cellarbration to see the action. A reminder that visiting a cellar door doesn’t mean a reason to overindulge, and consumers can visit www.cheers.org.nz where useful information on safe and responsible drinking can be found.

Waste not, want not How consumers buy their products is increasingly being influenced by the environmental footprint they leave when doing so. Businesses are responding to this in a range of ways, from plastic bag bans, to using recycled materials in the first instance. Much of this is led by consumer demand, but other initiatives come from businesses looking to the future and who understand their social responsibility when producing a product.

How breweries are working towards better waste outcomes is multi-faceted. Be it a carbon-zero certified beer by The Fermentist or DB Breweries partnering with Keep New Zealand Beautiful.

One industry led initiative is the Glass Packaging forum (GPF). This group is funded by its members with the aim of increasing glass recycling rates around New Zealand. The GPF is accredited by the Ministry for the Environment with the aim of lifting glass recycling rates in New Zealand to 82% by 2024. Between 2019 through 2024, the scheme is designed to increase recycling capacity alongside Visy Recycling and container glass manufacturer O-I through the creation of hub/spoke collection systems nationwide. To date, the GPF has awarded over $3.3 million in grants for projects which improve the quality and quantity of container

6 THE SHOUT NZ – OCTOBER 2019

Dylan Firth Executive Director, Brewers Association of New Zealand

glass available for recycling. The grants are funded through voluntary levies paid by the GPF members who represent 85% of the market by packaging weight.

A recent consultation by the Ministry for the Environment has started the ball rolling on the possibility of a Container Deposit Scheme (think money back on returned bottles).

While this may bring back the nostalgic bottle drive memory for many, it poses many risks for industry and consumers in terms of cost and whether it provides an actual positive impact on recycling rates. The landscape in recycling is rapidly changing and, as signalled by this government, if the brewing and other industries don’t keep ahead of the curve, they will be left with regulation that likely is not fit for purpose and leaves someone out of pocket.

our signi-chur beer

Unique & Uncompromising The Ultimate Expression of Single Vineyard Giesen Single Vineyard Fuder Clayvin Chardonnay

CERTIFIED BY BIOGRO NZ 5096 5096

Pask

on the cover

Instinct INTRODUCING

Winemakers Moore Haszard, Greg Allinson and Paul Smith

p

ask Winery has welcomed a new collection to its stable of wines - the Instinct range.

Including Rosé, Pinot Gris, Pinot Noir, Sauvignon Blanc, Chardonnay and Merlot, Instinct draws from more than 35 years’ of winemaking experience to craft unique fullflavoured wines.

Why Instinct? Think of your favourite artists, writers, chefs, actors; their years of experience provides an incredible instinct they rely on to deliver an outstanding product or performance.

Great winemakers also have it. They can analyse, research, experiment and consult.

But in the end, it’s instinct that drives them to craft wines that feel fresh, distinctive and contemporary – it’s what you want to drink, right at this moment.

Developed to deliver distinctly New Zealand flavours, the range uses vibrant parcels of fruit sourced from New Zealand’s greatest wine regions to match Pask’s vision – including Marlborough for its distinctive Sauvignon Blanc to sunny Hawke’s Bay for beautiful and rich

Chardonnay. The fruit displays pristine characters derived from New Zealand’s superb climate and dramatic geography.

“It’s very fitting to be launching this collection in springtime,” says Head Winemaker, Paul Smith. “It’s vibrant, its fresh, its playful and most importantly – it’s delicious!”

Created to drink now, this new range of wines are ideal for those who seek excellent value and for everyday enjoyment.

Available in specialty wine stores and restaurants throughout the world, and directly through the winery cellar door.

For more information, visit www.pask.co.nz

“WE BELIEVE WINEMAKING IS MORE THAN A SCIENCE, THERE IS AN INTANGIBLE EMOTIONAL ELEMENT THAT GOES INTO MAKING A GREAT WINE EXCEPTIONAL.”

ABOUT PASK

Pask Winery is a Hawke’s Bay wine producer and founding grower for the Gimblett Gravels region, best known for its estate grown Bordeauxvarietal red wines, Chardonnay and Syrah. Every bottle of Pask wine embodies the decades of experience, ethos of sustainability and care taken during every step of the winemaking process, elegantly expressing our unique terroir.

THE SHOUT NZ – OCTOBER 2019 9

i

t o n i p gris

n New Zealand, Pinot Gris is one of the most popular with sales of this semi-aromatic variety increasing at both retail and in restaurants. Pinot Gris is available as a dry, off-dry and occasionally a very sweet dessert style. There are also some sparkling versions of Pinot Gris.

Some of the typical aromas and flavours to expect from Gris are whitefleshed fruits - especially pears, apples (perhaps quince) - and white-fleshed stone fruits like nectarine. I often hear Nashi pear used as a descriptor, along with honeysuckle. Acidity is usually medium (above for some), firm textures from some skin contact cushioned by plush fruit concentration and warmish alcohol are collectively the main drivers of aroma and palate feel. When lees stirring is used the faint smell of beer may show as well.

Some producers also take advantage of being legally allowed to add the juice or coferment with other varieties notably Gewürztraminer and Riesling without having to reveal this information on the label. Be sure to visit the producer web pages if you want to know for sure.

Gris is grown in all regions of New Zealand with weightier, richer styles from Northland, Gisborne and Hawke’s Bay can be expected; slightly leaner expressions from Auckland, Wairarapa, Nelson and Marlborough and lean slightly steely expressions from North Canterbury, Waitaki and Central Otago.

Pinot Gris works well with many different cuisine styles so long as the weight and intensity of food are similar.

BY

S MS

UGLA O D N O R E CAM

1

3 2

Cameron Douglas is New Zealand’s first and only Master Sommelier. An experienced wine writer, commentator, judge, reviewer, presenter and consultant, he is academically in charge of the Wine and Beverage Programme at AUT University in Auckland and is Patron of the New Zealand Sommeliers and Wine Professionals Association. Douglas consults to a variety of establishments, taking care of their wine lists, wine and food pairings, and staff training matters and he currently serves on the Board of Directors for the Court of Master Sommeliers Americas.

10 THE SHOUT NZ – OCTOBER 2019

tasting notes DOMAIN ROAD DEFIANCE CENTRAL OTAGO PINOT GRIS 2019 Complex, mineral, fruity, varietal and enticing bouquet of Gris. Flavours on the palate suggest preserved white nectarine, Asian pears and a range of apples. Dry with a core of fruit, mineral and spice. Balanced and well made with a long gentle finish. Drinking well now and through 2022.

Points 94 RRP $27.00 Distributor: Co Pilot Distributors Phone: (09) 412 9137 www.copilotdistributors.co.nz

1

5

THE LANDING BAY OF ISLANDS PINOT GRIS 2019 Ripe, fleshy, fruity, varietal and totally inviting bouquet of Gris. Flavours on the palate suggest fresh apple and pear skin, a light nutty lees layer, chalky clay soil ideas and a poise that reveals a coarse silk texture. Well made, totally enjoyable and ready. Drink from today and through 2021.

Points 94 RRP $26.99 Distributor: The Landing Wines Phone: (021) 270 1875 www.thelandingnz.com

2

4

6

QUARTZ REEF SINGLE VINEYARD CENTRAL OTAGO PINOT GRIS 2018 Distinctive bouquet with a core of minerality and varietal fruit signatures.

Apple and pear skin, sweet lemon and blossoms, a gentle white pepper spice.

Dry on the palate with a core of fruit, adding a smooth satin texture. Abundant acidity, white spice and a floral mineral quality. Well made, decent finish, lots to like. Drink now and through 2022.

Points 93 RRP $32.00 Distributor: Vintners Phone: (0800) 687 9463 www.quartzreef.co.nz

3

7 8

MAIN DIVIDE NORTH CANTERBURY PINOT GRIS 2018 Powerful, enticing and generous bouquet of Gris. Suggestions of honeysuckle and lemon peel, a touch of marmalade and button mushroom then apple and firm green pear d’angou. Fleshy, fruity, tasty, tangy and dry on the palate. Flavours mirror the nose, plus plenty of acidity and lengthy finish. Lots to like with this wine.

Drink now and through 2021.

Points 93 RRP $20.99 Distributor: EuroVintage Phone: (03) 314 6869 www.maindivide.com

4

JOHANNESHOF MARLBOROUGH PINOT GRIS 2018 A lovely bouquet of Gris, classic, generous and fruity with an Alsace -like fragrance of minerality and core of spicy white fleshed fruits. Just dry on the palate with flavours of white fleshed fruits, some roses and spice. A light lees beer note adds complexity, medium acidity, just a touch of tension then a lengthy finish.

Well made and ready to enjoy. Drinking best from today and through 2021.

Points 92 RRP $29.00 Distributor: Co Pilot Distributors Phone: (03) 573 7035 www.johanneshof.co.nz

5

WAIRAU RIVER MARLBOROUGH PINOT GRIS 2019 Floral, fruity and varietal bouquet of Gris with aromas of flowers and citrus, pear and apple, honeysuckle and white spice.

Fleshy and generous on the palate with flavours that reflect the nose plus a little ginger spice and crushed rock earthy qualities. Well made, balanced and ready.

Drink now and through 2021.

Points 91 RRP $20.00 Distributor: Federal Merchants & Co Phone: (03) 572 7950 www.wairauriverwines.com

6

LUNA ESTATE MARTINBOROUGH PINOT GRIS 2019 Lovely bouquet of Gris packed with aromas of minerals and white-fleshed fruits, white flowers and sweet citrus. Dry, fruity and tense on the palate with some poise and panache. Plenty of acidity, a core of fruit with a citrus peel note, well made and ready. Enjoy from today and through 2022.

Points 90 RRP $21.99 Distributor: EuroVintage Phone: (0800) 338 766 www.lunaestate.co.nz

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PALLISER ESTATE MARTINBOROUGH PINOT GRIS Great bouquet of Gris with aromas of preserved flowers and ripe whitefleshed fruits, lees and a tangerine citrus suggestion and a little mixed fruit spice.

Equally lovely on the palate with a mixed flavour package from citrus to pear, fruit spices and leesy finish. Nice texture, balanced, well made and ready. Best drinking from today and through 2020.

Points 90 RRP $31.00 Distributor: Negociants NZ Phone: (0800) 634624 www.palliser.co.nz

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Wines are scored out of 100 points and are listed in no particular order. Numbers are not indicative of a ranking.

THE SHOUT NZ – OCTOBER 2019 11

y a n n o d r a cth LAS MS

DOUG N O R E M A

BY C 1

he vast majority of aromas and flavours of Chardonnay come from the management of fruit once it arrives into the winery. Winemakers use their skills to shape the aromas and textures of Chardonnay through particular techniques - for example, leaving some grape solids in the juice before fermentation, fermenting in stainless steel, concrete eggs or vats, large plastic tubs, new or used oak barrels of varying sizes and toast levels. Some producers can add oak flavour by suspending large bags of toasted oak chips inside a stainless-steel tank as a cost saving measure (oak barrels are very expensive). The fermentation stage is the most critical because it locks in most of the flavours we recognise.

Chardonnay can age quite well, but only if provenance, yield, winemaking then storage present in the right combinations. There are some predictable or ‘traditional’ expressions of Chardonnay still popular and available. The creamy, fruity, oaky and buttery style is still very popular.

These wines are made in a specific way that uses an acid conversion technique called Malolactic Fermentation (MLF). Here’s how it works: chardonnay wine post ferment is susceptible to certain bacteria forming naturally in a wine usually over spring. The enzyme that is activated by the bacteria converts some or all of the malic acid into a softer milky lactic acid. You may recognise this in the wine as a buttery texture. Combined with the flavours of new oak the nutty, smoky and even butterscotch flavours can be delicious for many.

12 THE SHOUT NZ – OCTOBER 2019

GIESEN SINGLE VINEYARD THE FUDER CLAYVIN MARLBOROUGH CHARDONNAY 2015 Complex, complete, detailed and precise - a bouquet requiring your absolute attention first. Flavours include grapefruits and baking spices, vanilla and white wood smoke, peaches and cashew. Dry, weighty, rich and concentrated, complex, detailed and lengthy.

Drink now and through 2025+.

Points 96 RRP $59.99 Distributor: Giesen Group Ltd Phone: (03) 344 6270 www.giesenwines.co.nz

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TE PĀ THE RESERVE COLLECTION ST LEONARD’S MARLBOROUGH CHARDONNAY 2018 Bold, forward, fruity, youthful and distinctive bouquet of Chardonnay. Aromas of roasted orchard stone fruits - nectarine and peach, baking spices of vanilla and a little clove, then smoky oak. Dry, weighty and equally bold on the palate.

Full-bodied with flavours that reflect the fruit and oak messages, plus roasted nut and a burnt butter note. A lovely wine with a complex weight finish. Drink now and through 2023.

Points 95 RRP $49.95 Distributor: Beverage Brothers Ltd Phone: (03) 570 5192 www.tepawines.com

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3 DOMAIN ROAD DEFIANCE CENTRAL OTAGO CHARDONNAY 2018 The bouquet takes a while to reveal all it has to show complex and detailed, youthful and fresh with a core of mineral rocks then oak and fruit. Equally complex on the palate with a lovely core of fruit and oak combinations, white-fleshed fruits, a touch of tropical fruit with a quartz-like mineral finish. A lovely wine

with the finer details needed to become a classic. Can be enjoyed now and will cellar as well. Best from 2020 through 2025.

Points 95 RRP $32.00 Distributor: Co Pilot Distributors Phone: (09) 412 9137 www.copilotdistributors. co.nz

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LUNA ECLIPSE MARTINBOROUGH CHARDONNAY 2018 Nicely complex on the nose, a core of fruit contrasted by oak and minerality. Nothing is overdone so quite a pure and balanced attack. More complex on the palate where the oak begins to emerge stronger than the nose suggested.

Equally strong is the fruit telling the same story as on the nose. Some fine tannins and plenty of acidity this is a lovely wine. Lengthy finish and a developing complexity Drinkable now though best from late 2020 through 2025.

Points 95 RRP $35.99 Distributor: EuroVintage Phone: (0800) 338 766 www.lunaestate.co.nz

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TONY BISH HEARTWOOD HAWKE’S BAY CHARDONNAY 2018 Charming bouquet of Chardonnay with a medley of aromas led by yellow stone fruits in harmony with lees, butterscotch and sweet apple. Gentle creamy textures contrasted by acidity and the bite of wood accentuated by its natural spice and sweetness.

Medium+ acidity and a core of peach and ripe citrus fruit flavours. Youthful still, so should be cellared for at least another year. Best from late 2020 through 2024+.

Points 95 RRP $35.00 Distributor: Caro’s and Long Cloud Wines & Spirits Phone: (06) 650 3353 www.tonybishwines.co.nz

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tasting notes

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PALLISER ESTATE MARTINBOROUGH CHARDONNAY 2018 A classy and classic bouquet of Chardonnay with aromas of a fruit laden silty soil mineral and oak layered attack, a building complexity and natural charm.

Toasty, fruity and fresh on the palate with oak leading the flavour package then stone fruit, wood spices and synergy. Dry, lengthy, balanced and well made. Lots to like here. Drink now and through 2024.

Points 94 RRP $43.00 Distributor: Negociants NZ Phone: (0800) 634624 www.palliser.co.nz

MATAHIWI ESTATE HOLLY SOUTH SERIES WAIRARAPA CHARDONNAY 2018 Complex and fragrant bouquet of Chardonnay - all the layers of a well made wine showing off aromas of grapefruit peel and peach, nutty oak and toasty spice layers. Dry on the palate with lots of nutty fruity flavours, citrus, apple, peach and baking spices.

Fine wood tannins and medium acidity.

Well made and ready. Drink from today and through 2024.

Points 93 RRP $32.99 Distributor: Matahiwi Estate Phone: (06) 370 100 www.matahiwi.co.nz

BLACK BARN HAWKE’S BAY BARREL FERMENTED CHARDONNAY 2018 Bold, fruity, oaky and nutty bouquet, but also quite elegant and complex. No mistaking the aromas of wood smoke and baked peach, some citrus, quince and apple; raw energy on the palate with oak and acidity, new wood and baking spices. A full-bodied wine with a big gutsy palate and lengthy finish. Drink now and through 2025.

Points 94 RRP $39.00 Distributor: Negociants NZ Phone: (06) 877 7985 www.blackbarn.com

THE LANDING BAY OF ISLANDS CHARDONNAY 2018 Very generous bouquet of Chardonnay with a big, nutty, oaky and fruity core. A suggestion of popcorn or butterscotch adds a layer of complexity and familiarity. Ripe peach and apple fruit flavours, vanilla and spicy oak. Fullbodied with a core of fruit carried along by the alcohol and acid line. Lengthy finish, well made. Best drinking from today and through 2023.

Points 93 RRP $39.99 Distributor: The Landing Wines Phone: (021) 270 1875 www.thelandingnz.com

HUNTER’S OFFSHOOT MARLBOROUGH CHARDONNAY 2017 Complex and textured bouquet of Chardonnay with a steely gun flint and leesy beginning then grapefruit before peach, vanilla before cashew and other wood spice. Loads of texture on the palate with flavours that reflect the nose, medium+ acidity and weight, lengthy and refreshing complex finish. Well made. Drink now and through 2022+.

Points 94 RRP $34.90 Distributor: EuroVintage Phone: (03) 572 8489 www.hunters.co.nz

STATE OF FLUX AWATERE VALLEY CHARDONNAY 2018 Complex and textured bouquet with aromas and flavours of a lees centric and pure fruited core. Fine, layered, chalky and fruity on the palate. Flavours are floral as well as fruity with medium+ acidity and some very fine fruit tannin detail. Balanced and well made. Drink now and through 2021.

Points 93 RRP $39.00 Distributor: Yealands Phone number: (03) 575 7618 www.yealands.co.nz

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SELAKS FOUNDERS HAWKE’S BAY CHARDONNAY 2018 Bold and rich bouquet, with aromas of toasty oak, baking spices and roasted orchard fruits. Full bodied on the palate with creamy round textures, then flavours that mirror the nose - lots of wood spice, vanilla and clove, fresh medium+ acidity. Balanced and very well made with a long finish. Lots to like about this wine. Cellar or drink now and through 2023.

Points 94 RRP $29.99 Distributor: Constellation Brands NZ Phone: (0800) 662 456 www.selaks.co.nz

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SACRED HILL SINGLE VINEYARD HAWKE’S BAY CHARDONNAY 2018 An attractive and immediately inviting power of richness showing roasted stonefruits, toasty oak and nutty, almost burnt butter attributes. Equally rich and characterful on the palate with a nutty toasty oak attack, then flavours of yellow grapefruit peel. A decent weight and richness, well defined acid line and lengthy finish. A wine many Chardonnay fans will enjoy. Drink now and through 2022.

Points 92 RRP $24.99 Distributor: Quench Collective Ltd Phone: (06) 879 8760 www.sacredhill.com

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TONY BISH SKIN IN THE GAME HAWKE’S BAY CHARDONNAY 2018 A complex, intriguing and enticing bouquet of Chardonnay. Takes more than a few sniffs to get all the content and story of this example - aromas of chalk and texture, red apple skin and dry citrus peel, some floral moments and a core of energy. Dry on the palate with a core of texture and skin contact derived flavours - hard to describe, so I’ll just suggest you try the wine and decide for yourself. Suffice to say, complex and intriguing, detailed and lengthy. Drink now and through 2022+.

Points 92 RRP $30.00 Distributor: Caro’s and Long Cloud Wines & Spirits Phone: (06) 650 3353 www.tonybishwines.co.nz

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TE PĀ MARLBOROUGH CHARDONNAY 2018 An attractive bouquet with a soft smoky and toasty wood aroma, contrasting scents of orchard fruits with golden queen peach and red apple and a whisper of grapefruit. On the palate - a dry wine with a mix of flavours from roasted yellow stone fruits to vanilla, brazil nut and tostiness of oak. Youthful, balanced and well made with a lengthy finish. Decant for service with food through 2020 then on its own till 2022.

Points 92 RRP $24.95 Distributor: Beverage Brothers Ltd Phone: (03) 570 5192 www.tepawines.com

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SELAKS THE TASTE COLLECTION BUTTERY HAWKE’S BAY CHARDONNAY 2018 A very distinctive bouquet to this wine with aromas of cashew and brazil nut, burnt butter, vanilla and yellow orchard fruits. Full bodied, juicy, rounded texture, medium acidity and flavours that mirror the nose. Classic Friday through Sunday Chardonnay style. Drinking best now and through 2021.

Points 90 RRP $21.99 Distributor: Constellation Brands NZ Phone: (0800) 662 456 www.selaks.co.nz

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THE SHOUT NZ – OCTOBER 2019 13

Q+A

HOW TO

brew success

Specialist beer accountant and author of Small Brewery Finance, Maria Pearman, shares some insights into the global brewing industry and what Kiwi breweries can do to stay competitive.

How did you first get interested in the financial side of the brewing industry?

“I worked as a CPA [Certified Public Accountant] in a large accounting firm. I did taxes and some of my clients were breweries. I saw that small breweries would spend more money having the CPA clean up their financials from the prior year, than they would on getting their taxes prepared.

This showed me there was a hold in the market for contract controller services for breweries.

I started offering that service, it was wellreceived, and my career grew from there.”

How does the Kiwi brewing industry compare with other global markets in your experience?

“Very similar. It follows the same trendlines, but the timeline seems to be more compressed than other markets that have already grown to a more mature point. It will take the New Zealand industry a shorter amount of time to go through its life cycle because the story has already been written in other parts of the world. It is natural for emerging markets to emulate – consciously or subconsciously – the path of others that have come before. That’s human nature!”

What are the biggest financial mistakes that breweries make when they first start out?

“Not investing in building a team that can help the founder manage the business. Often there is a mentality of bootstrapping everything.

The founder ends up being the head brewer, Chief Marketing Officer, bookkeeper AND CFO, head janitor, and IT expert. One person can’t do it all, and if they are doing it all they are probably doing a lot of things inefficiently.

I would encourage small business owners to operate today like the company that they aspire to be one to two years in the future. This is not always feasible, but when you can, it pays off handsomely.”

With a saturated craft beer industry in New Zealand, what can breweries do to stay competitive?

“Now more than ever it’s important to have specific, accurate data on business performance.

An increasingly competitive environment requires that business decisions be made with precision. Additionally, it’s important to maximise capacity as much as possible – in other words, to maximise the investment in physical plant.

These two points go hand-in-hand. For example, if a brewery is at maximum capacity and makes two IPAs, management needs to know margin by brand. This allows them to focus on the IPA that has larger margin – thus maximising the return on investment of their limited production capacity.”

What changes have you noticed in the global beer industry in recent years?

“I have noticed a general maturation. First, the consumer palate starts to become more accepting of more flavourful beers: a small brewer scene develops and grows rapidly: larger corporations are attracted to the fast growth and insert themselves by acquiring smaller companies; private equity starts to invest in smaller companies; the business model for independent producers starts to pivot towards a brewpub/taproom model (i.e. the definition of success changes for small producers). Multiple strata within the industry emerges: big beer, little big beer, small beer (independent, craft). The same trend seems to follow geographically, too.

First it starts in denser metropolises and spreads to rural areas. You can see this in the US, Australia/New Zealand, and now Mexico, Central America, South America and China.”

14 THE SHOUT NZ – OCTOBER 2019

SOME NUMBERS… Kiwi inventory tech company, Unleashed Software, has conducted research into a sample of Australian and New Zealand indie craft breweries, finding growth in new beer varieties for New Zealand brewers has cooled to 16% in the last year, down from 21% a year earlier.

Of the 22 ANZ brewers Unleashed Software researched: • The top four fastest growing craft beer brewers had a third (36%) of the number of beers on offer than the others researched, pointing to the value of specialisation.

• Aussie brewers increased their range by a whopping 36% this year, up 1% from the year before, indicating there’s still a big thirst for new varieties across the ditch.

• Australia is benefiting from higher gross margins than New Zealand, at 71%, compared to 60% in New Zealand.

• The top tier performers had on average 16% less stock on hand.

Less stock on hand means less capital tied-up in inventory.

What tips would you give new brewers to stay on top of their game financially?

“The number one piece of advice is to review the financial results on a regular basis. Each month management should be looking at the results in a methodical manner – and ideally comparing the actual results to the budget. It’s not always an exciting exercise, but it uncovers so much helpful information. The critical point is to take action when you identify things that need to change.“

ABOUT MARIA

Oregon-based Maria Pearman is a Certified Public Accountant who provides accounting expertise and a deep operational knowledge to the alcohol beverage industry. She teaches finance and accounting for the craft brewer, is currently in the University of Vermont’s Business of Craft Beer programme, and her book - Small Brewery Finance: Accounting Principles & Planning for the Craft Brewer - is out this month.

out of this world sales@sprigandfern.co.nz

l l e w

s ’ e l THAT ENDS WELL A

Beer writer John Oszajca shares an insight into the tasty style of Pale Ale – and no, that doesn’t technically include IPA…

w

hen we think about a Pale Ale, the image that comes to mind is not exactly an exciting one. We tend to think of a Pale Ale as a simple ‘gateway-beer’; a beer that is more interesting than an American Lager, but certainly not a challenging – or even interesting – style. We expect them to be easy to drink, maybe a wee bit hoppy, and (as the name would suggest) pale – at least by craft beer standards. It’s the beer that American Lager drinkers might ask for when nothing lighter is available, or when they feel like going for something “a bit more craft”.

However, this underwhelming reputation is really only something that has been bestowed upon the style in recent years. In reality, the Pale Ale is a tasty and important style.

Moreover, it would be fair to say that the humble Pale Ale is the mother of the entire craft beer movement.

It may not seem like a big deal in this day and age, but the Pale Ale’s definitive quality (its pale hue) was quite an innovation when it first hit the scene in the late 17th 16 THE SHOUT NZ – OCTOBER 2019

century. Prior to that time, all malted barley was dried using wood- or peat-fuelled fires. The smoke and heat produced by these fires resulted in darker, often smoky, beers. As such, most beers prior to this time were brown or black in colour (e.g. Brown ale, Porter, Stout, Dunkel, etc). However, sometime in the middle of the 17th century, maltsters began using coke (a fossil fuel derived from coal), to dry their malt. When used as fuel, coke generates a significant amount of heat without the soot or smoke of wood and peat fuelled fires. The result was a paler malt, and the beers produced with this new pale malt were gold to amber in colour. These pale beers were a hit, and we see the term Pale Ale first used in Britain as early as 1703. By the 1800s, they became known as ‘Bitters’, not for any overwhelming bitterness, but rather to distinguish them from Brown Ales and Milds, which tended to have a sweeter finish.

Almost immediately, the Pale Ale began to evolve as it gained popularity in Britain and soon spread across the globe. For example, the hard water of Burton-

John Oszajca To contact John Oszajca regarding beer features or samples, please email him at john@newzealandbrewer.co.nz

beer feature Upon-Trent complemented a more highly-hopped style of Pale Ale (Burton Ale) than those initially found in London (Bitter). As Pale Ale spread across the globe, many different nations would incorporate indigenous ingredients, brewing processes, and personal taste to produce regional variations on the Pale Ale, or entirely new styles of their own. One popular descendent of the Pale Ale is the India Pale Ale (IPA), a significantly stronger and hoppier version of the Pale Ale which was designed by British brewers to withstand the long sea voyage to India. However, a devastating combination of advances in refrigeration, war, the temperance movement and changing tastes, would drive many beer styles into near extinction and towards an overwhelming homogenisation that favoured (the arguably less interesting) Pale Lager.

Pale Ales lived on (especially in Britain) but its popularity waned. That is until 1980 when a fledgling American microbrewery from Chico, California, produced its first batch of Pale Ale. I refer to the now legendary Sierra Nevada Pale Ale – which, no doubt, was inspired by the flavourful English Bitters. However, Sierra Nevada used American hops and a cleaner, betterattenuating California yeast strain. The result was a refreshing Pale Ale, loaded with flavour (at least compared to the American Light Lagers on the market). For many, the Sierra Nevada Pale Ale was a revelation. While Sierra Nevada was not the first to produce an American Pale Ale, they were the company to put the style on the map and set in motion what would ultimately grow into the modern craft beer movement. While the Pale Ale has long since been outshined by the IPA, and a mélange of other increasingly extreme beer styles, it remains a tasty and popular beer that makes an appearance in nearly every brewery’s line up.

Today, when we use the term Pale Ale we are typically referring to one of three types of beers - the British, American, and Belgian Pale Ale. Let us take a look at each of these variations of the style and the unique qualities that set each one apart.

ENGLISH BITTER (AKA BRITISH PALE ALE) The original Pale Ale, the English Bitter comes in three strengths: The Ordinary Bitter, Best Bitter, and the Strong Bitter (aka ESB). Raging from between 3.2% and 6.2% ABV, bitters are

“IT WOULD BE FAIR TO SAY THAT THE HUMBLE PALE ALE IS THE MOTHER OF THE ENTIRE CRAFT BEER MOVEMENT.” malty beers with notes of bread crust, biscuits, and caramel, and a moderate to high degree of earthy, herbal, and floral hop character. Perhaps what sets the English Bitter apart the most is the use of classic English yeast strains. These strains are known for producing fruity esters, and attenuating less than their cleaner, American counterparts. This lower attenuation allows for a lower alcohol beer that still retains a high degree of body and mouth feel. Often traditionally served on hand pump and/or with a lower than average degree of carbonation, an English Bitter is a beer that you can drink a fair amount of and still feel fine the following morning.

To try a classic English Bitter brewed right here in New Zealand then grab a can of Bob Hudson’s Bitter from Auckland’s Galbraith’s Brewing Company. Bob Hudson’s Bitter is brewed using Golden Promise pale ale malt and crystal malt from Yorkshire, Styrian Golding hops, and hard water to bring you an authentic English-style pale ale. Better still, head down to Galbraith’s Ale house and see if you’re lucky enough to find it on hand-pull.

on the American West Coast. However, time and perhaps competition from the IPA, has driven the intensity of the APA up over the years, creating a bolder style. Though the style has become internationally recognised as the American Pale Ale, many nations (including New Zealand) produce Pale Ales that emulate the balance of the APA, while showcasing their own unique hop varieties (such as the New Zealand Pale Ale, or NZPA).

You’ll find no shortage of American Pale Ales in New Zealand’s bottle shops and craft beer bars. A few of this countries stand-outs that shouldn’t be missed are Yakima Monster from Liberty Brewing, Dirty Boots from Garage Project, ‘Murica from Behemoth, and Super Charger from Panhead.

BELGIAN PALE ALE With roots that date as far back as the mid-1700s, the Belgian Pale Ale is Belgium’s take on the English Bitter. Unlike many other Belgian beers, which tend to be bold in both flavour and alcoholic strength, the Belgian Pale Ale is an easy drinking, coppercoloured ale that is much more subdued than the average Belgian Ale. Ranging between 4.8% and 5.5% ABV, you will find many of Sprig & Fern’s the same malt Belgian Pale Ale characteristics that you might find in an English Bitter AMERICAN PALE ALE (bread crust, biscuit, caramel) Where the British Pale Ale as well as much of the same tends to strive for hop character (herbal, floral). balance, the American However, where the British Pale Ale (APA) strives Pale Ale gets its fruitiness to showcase the from British yeast strains, the unique flavours and Belgian strains used in the aromas of American Belgian Pale Ale produce an hops. Originally there unmistakably Belgian beer was a greater degree with notes of pear, citrus, and Behemoth’s of delineation between occasionally a hint of spice.

‘Murica American East Coast and While the Belgian Pale Ale is West Coast Pale Ales. perhaps the rarest of the Pale Ale East Coast Pale Ales were variations, you don’t have to fly all the known for being more subdued, way to Brussels to get your hands on a and more similar to British Pale pint of this delicious style. If you’re lucky Ales, while West Coast Pale enough to come across a bottle, try the Ales were dryer, cleaner, and plainly titled (but delicious) Belgian Pale loaded with the floral, citrus, and Ale from Sprig & Fern . . . you won’t be pine aromatics that are unique to disappointed.

Galbratih’s Bob the hop varieties commonly grown Hudson’s Bitter THE SHOUT NZ – OCTOBER 2019 17