A Time of Turmoil and Change - New Zealand Food and Grocery Council
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NEWSLETTER: 12 APRIL 2019
A Time of Turmoil and Change
What a month of turmoil and change we had in March.
First there was the turmoil of the unthinkable horror of
the Christchurch mosque attacks. I know we were all
shocked at what happened, but it was great to see our
FMCG community, banding together in time of need (as
it did after the Christchurch earthquakes). Thanks to
members who contributed product, and to our FGC
leaders Tim Deane our Chair, Ali Hamza, GM of
Bluebird/Pepsico, and Imraan Ali, Country Manager of
SC Johnson, for their guidance and leadership. Thanks
also to everyone else for helping show the FMCG sector’s solidarity. There’s something special
about being a Kiwi that shines through in times such as these.
Change came in the form of Tim Deane’s
resignation as FGC Chair, and the appointment
of Mike Pretty, MD of Kraft Heinz, to replace
him. Tim, former MD of Goodman Fielder, is off
to a position outside the sector, though not too
far – as executive general manager business
banking at ASB. It was a privilege to work with
Tim, who put his own stamp on the role!
I’m delighted Mike will take the Chair, after
nearly two years on the FGC Board. He brings a
wealth of expertise from his roles. He’s very passionate about producing great
New Zealand food, and is an active advocate for local growers. Tim now
replaces Veronique Cremades, former Country Manager of Nestle, as
Immediate-Past Chair.
A reminder that registrations for the Half Yearly Meeting & AGM at Eden Park
on 16 May are open on the home page of the website. Speakers will be the
Minister of Commerce and Consumer Affairs Hon Kris Faafoi, Murray River Organics (Australia)
Managing Director and CEO Valentina Tripp, and My Food Bag CEO Kevin Bowler.
And don’t forget to lock away the date for the annual conference in Melbourne: 6-8 November.
FGC Newsletter: 12 April
FGC Event: Special Leadership Workshop on H&S
The Health & Safety Working Group is hosting a
free leadership workshop in Auckland on 9 May for
FMCG company leaders. The guest speaker will be
Peter Reidy, CEO of Fletcher Construction and
former CEO of KiwiRail, who will talk about high
performance teams and his experience of positively
shifting the H&S culture at KiwiRail. He's proud of
the workplace culture he's leaving behind at
KiwiRail, after adopting Air NZ’s high performance,
high engagement strategy with great results. "It's
all about leaders letting go and your frontline workers taking ownership of problems,” he says.
Peter will be joined by Natalie Davis, CEO of Woolworths NZ, who will share her
view on safety culture. This event will be interactive, where attendees will
network with other CEOs/GMs, Supply Chain and Sales leaders and hopefully
walk away with some great ideas to improve H&S culture. The session will be
facilitated by Philip Voss, from Leading Safety, and is sponsored by Woolworths.
While the session is aimed primarily at CEOs and GMs, they’re welcome to take
their head of Supply Chain, Sales or head of Health & Safety. The venue is the
Holiday Inn Auckland Airport (2 Ascot Rd, Mangere), 7:30am for 8am start, finish
at 11:30. It’s free, and those registering should email Gerry Lynch.
Changes Make Safe In Store Pass More Effective
Changes have been made to the Safe In Store Pass to make it easier to use
and more effective for merchandisers. The changes will make
the Pass even easier to use and greater integration into
future developments from both suppliers and retailers. The
Pass content has been reviewed and revised, ensuring
content reflects the learning needs of users and addresses the
changing health and safety pressures in store. Content is
changing to reflect legislative amendments too. The Pass now
has a barcode on the front to prepare it for when stores are
able to scan into their visitor registration systems. Planning for
these systems is under way and once implemented will
significantly speed up the arrival process at stores. The Safe In
Store Pass is now integrated with two of New Zealand's major
grocery CRMs: both Opmetrix and Insightful.mobi have a full
integration with Pass, significantly improving the efficiency of
user compliance for customers of these systems. Inquiries are welcome from
other CRMs wanting integration, as are suggestions for improvements from supplier health and
safety managers. For further information and to register for the Safe In Store Pass, go to the
website.
FGC Newsletter: 12 April
FGC Event: Dr Food at Villa Maria, 3 May
A must for those who want an update on food, grocery and supermarket
trends around the world. This sold out last year so be in quick!
FGC will be hosting international food marketing expert Professor David
Hughes at a morning event in Auckland on 3 May. Prof Hughes works
closely with senior management of food and beverage firms around the
world on business strategy development and with governments on food
policy formulation, and offers the latest insights into food trends. The
event runs from 9am-11am, and registrations are open on the FGC
website.
Salary Survey for Food Tech Staff
Food companies are invited to participate in a survey of
food industry technical staff salaries, and will later get free
access access to the data from it. The survey has been
organised by the Institute of Food Science & Technology
(NZIFST), which sees it as a valuable resource for the wider
food industry and for its members in assessing the value of
technical roles within the industry. Small to medium food companies often struggle to access
relevant salary information due to the high cost of existing surveys. Participants will receive a
complimentary comprehensive remuneration report in the middle of the year, while NZIFST
members will have access to the broader survey results on the NZIFST website. Participating
companies will be asked for data by role, age, experience, highest qualification, base salary, add-
ons, bonuses. The survey will include positions in technical (product development, nutrition,
sensory, packaging, process development), quality (QA, QC, laboratory, compliance, food safety),
environmental, health & safety, and engineering. Members wishing to participate should register
their interest by emailing survey organisers Lawson Williams. The survey will be distributed to
participants during April.
FGC Fronts Select Committee on Food Waste
Last month, FGC made an oral
submission to Parliament’s
Environment Select Committee,
which is investigating food waste in
New Zealand. The submission,
presented by Policy & Regulatory
Director Carole Inkster, emphasised
the work being done by member companies to minimise waste, and followed a written submission
last year. Carole pointed out that though FGC does not collect data on food waste, many members
are actively involved in initiatives to address the issue of reducing their waste footprint, including
donating food to organisations such as Auckland City Mission, KiwiHarvest, Kaibosh, and the
Salvation Army, and working with processors to ensure waste is put to other good use or recycled.
Read the full written submission on FGC’s website.
FGC Newsletter: 12 April
Community: Sistema Donates to Decile 1 Schools
Member Sistema Plastics recently launched an
initiative called the Sistema School Starter
Programme to help new entrants who are
going without lunch. The nationwide
programme will see 8319 new entrants at 256
low decile schools get a lunchbox and drink
bottle. The aim is also to encourage healthy,
waste-free lunches that are becoming a
standard at many schools. Sistema CEO Drew
Muirhead (pictured back at school) says
starting school can be an exciting but
challenging time for children and their
families. “Statistics tell us one in four Kiwi kids are living in poverty and thousands of our most
vulnerable are being sent to school without lunch every day. We want the Sistema School Starter
Programme to have a positive impact by encouraging kids to eat healthy lunches. Sistema comes
from humble beginnings in small-town New Zealand and has grown into the global business we
are today. We have a passion for driving the future of NZ, and an important part of that is making
sure the next generation is equipped with the basics to go on to succeed in life.”
Mandatory Sunscreen Standards?
FGC recently responded to questions around
whether the Government should implement
mandatory sunscreen standards. Katherine
Rich told Supermarket News: “A mandatory
standard for sunscreens would be a good
idea if overseen by the Environmental
Protection Agency. It oversees the Cosmetics
Standard. It would a regulatory disaster for
either Medsafe or the Ministry of Health to
oversee them. Their role is to regulate medicines and so they tend to view all regulation through
that lens. The last time they regulated grocery products like toothpaste, mouthwashes and anti-
dandruff shampoos their overregulation was so incredibly expensive and bureaucratic it meant
that many New Zealand consumers did not get access to many new variants available overseas
because it was simply too costly to launch in New Zealand. This changed once these products were
shifted from the oversight of Medsafe to the EPA. We need to remember we are a marketplace
smaller than Sydney. The EPA is best suited to oversee this, and it would make sense to do this
through the Cosmetics Standard.”
FGC Members Strike Big Gold
Congratulations to FGC members Fonterra Brands, Lewis Road Creamery, and Goodman Fielder for
scoring golds at the New Zealand Champions of Cheese Awards. Fonterra won 24 golds and 20
silver or bronze medals. Also to Villa Maria Estate for winning 12 golds and three trophies at the
Royal Easter Show Wine Awards across a spectrum of varietals – an impressive 20% of the total
gold medal count!
FGC Newsletter: 12 April
Talent Working Group Vision for 2019
FGC’s Talent Working
Group has released its
vision statement for the
year, reinforcing that
plans to ensure FMCG is
the industry of choice in
New Zealand include the
Internship Programme
and Auckland Uni Expo,
networking events, and
with a big emphasis on
diversity.
Industry Relations Working Group Workplan
FGC’s Industry Relations Working Group has finalised its workplan for the year, and it shows just
how closely and in how much detail it is working with Foodstuffs and Woolworths NZ on issues
vital to suppliers.
FGC Newsletter: 12 April
MPI Seeks Feedback on a Range of Issues
Consolidated and revised notice exempting food for export from domestic compositional
requirements: A proposed consolidation and update of four notices: 1) Animal Products (Glycerol
Esters of Fatty Acids in Milk and Cream Based Formulations – Food Standards Exemption) Notice
2007; 2) Animal Products Notice: Dairy Products – Food Standards Exemption – 6 December 2017;
3) Food Notice: Food Standards Exemption Fonterra Limited – 7 November 2018; 4) Food Notice:
Dairy Based Products – Food Standards Exemption No. 5 – 20 November 2018. See the
consultation document on the MPI website. Consultation closes on 3 May.
Organic Production Rules: Proposed requirements for organic production under the MPI Official
Organic Assurance Programme, for exporting. This consultation is independent from work on a
new regulatory regime for organics. MPI wants to know if the requirements are easy to follow and
understand, and if anything needs more detail or is missing. The requirements for organic
operators under the programme are to be in a single document called Organic Export
Requirement: Operator Requirements. Details are on the MPI website. Consultation closes on 10
May.
Proposed Changes to Animal Products Notice:
MPI has drafted a new Notice and associated
forms for Animal Products for Human
Consumption. It’s asking questions around
clarity of the consolidation, requirements for
harvesting wild birds, any corrections needed
for any content of the Notice, any other
aspects that should be included in the Notice,
and whether more guidance boxes are needed.
It says specifications for Products Intended for
Human Consumption applies to operators and
other specified persons supplying and processing animal product for human consumption under
the Animal Products Act 1999. The current Notice requires technical updates and an overhaul in
structure. The consultation document, draft notice, background documents and supplier
statements are on the MPI website. The consultation closes on 27 May.
Warning Over Trademark Approaches
Some members are reporting fresh approaches from
a company claiming to be their trademark
representative or an official organisation, and warn
others to be alert to this. Cottonsoft sent us a copy
of a letter from PTMO Limited that claims their
trademark was about to expire and may be lost if
not renewed in time. The letter cites the cost of
$1200 for one trademark class and $650 for
additional classes. In 2016, PTMO received a
warning from the Commerce Commission for similar
activity – “for sending a notice to trademark holders
that is likely to breach the Fair Trading Act 2003 and
mislead trademark holders.” See the Commerce
Commission notice here.
FGC Newsletter: 12 April
CGF Conference to Tackle Growth through New Retail
Growth Through New Retail
is the theme for this year’s
Consumer Goods Forum’s
conference, to be held in
Vancouver in June. The forum
says the consumer goods
industry has never
experienced disruption at a
faster pace than now, and is
“facing a precipice and business as usual is no longer an option. New technologies, changing
consumer demands and digital-first companies are ensuring turbulence from all sides. As such, we
can no longer talk about individual solutions in isolation.” In response, the speaker line-up
features leaders from some of the world’s big consumer goods companies who will be presenting
and leading discussions on a wide range of topics. Session titles include Profitable Growth Through
Precision in Digital Transformation; It’s Time to Work Together and End Plastic Pollution; Waste
Revolution - An AI Enabled Intelligent Supply Chain Helps you Conquer Waste; How Will You
Master the New Consumer Ecosystem? The future is about agile, demand-responsive ecosystems;
Decoding Generation Y, Attract Them to Your Brand, Excite Them in the Store; The Rise of Delivery
and How Food Companies Need to Adapt; The Evolution of Retail in a Digital Age: How to Provide
Consumers with a Seamless Experience; The Future of Retail Workforce. More information is
available on the CGF website.
Allergen Bureau Holds Third Conference in May
The Allergen Bureau’s 3rd Biennial Food Allergen Management
Symposium will be held in Melbourne from 13-16 May. It offers
a full three-day symposium reaffirming the concepts of ’risk
communication’, science of thresholds, reference doses, and
their application. Also covered will be updates on regulation
and policy, food fraud insights, frontiers in treatment and clinical research, the latest on detection
methodologies from the laboratories. Register on their website.
Conference on Human Variability in Response to Food, Nutrients
A reminder about this conference in Sydney on 14-15 May.
It’s organised by the International Life Sciences Institute,
the Australian Commonwealth Scientific and Industrial
Research Organisation, and the University of South
Australia and will explore the nature of individual human variation in response to
food choice and nutrient intake, and how that may initiate a new era of
opportunity for personalised nutrition. Attendees will hear leading global and regional experts
present the latest science, discuss business implications, and consider the regulatory environment
for personalised nutrition with a focus on improved health and performance outcomes. Further
information and registration are on the conference website.
FGC Newsletter: 12 April
Employment Relations Changes
April 1 saw big changes to employment
relations legislation, from minimum wage
increases and domestic violence, to KiwiSaver.
Chief among the minimum wage changes are
increases to $17.70 per hour for workers paid
by the hour or by piece work, $141.60 per day
for those paid by the day, $708 paid weekly,
and $1,416 paid fortnightly. The minimum
starting-out rate (80% of the adult rate) for
workers not involved in training or supervision
who are aged 16, 17 and have not worked
continuously for the employer for a period of
6 months, or aged 18 and 19 and have spent 6
months on a benefit and not previously
worked 6 months for an employer increases
to $14.60 per hour, $113.28 per day, $556.40
per week and $1,132.80 per fortnight in all
other cases
The Domestic Violence – Victims Protection Act amends the Employment Relations Act to allow
workers affected by domestic violence (including those living with a child affected by domestic
violence) to ask for a short-term variation in their working arrangements (2 months or shorter).
Workers can subsequently ask for their short-term variation to be extended or made permanent.
Employers must respond within 10 working days of receiving a request but can ask for proof that
the worker (or child) is affected by domestic violence and have a right of refusal. Grounds for
refusal are specified. If an employer fails to respond as required, the matter will be treated as an
employment relationship problem. It also amends the Holidays Act to provide any worker
affected by domestic violence (including a worker living with a child affected by domestic violence)
with up to 10 days’ paid domestic violence leave. To be eligible, an employee must have worked
continuously for the employer for 6 months for an average of 10 hours a week, working at least 1
hour each week and 40 in each month. Leave may be taken sooner by agreement. Payment is
average daily pay or relevant daily pay. Leave can be requested whether the violence is currently
occurring or occurred at some earlier time, even if that was before the person affected came to
work for the employer. The 10 days’ domestic violence leave is available only within each 12-
month period and can’t be carried over to the following 12 months.
The Taxation (Annual Rates for 2017-2018, Employment and
Investment Income, and Remedial Matters) Act 2018 amends the
KiwiSaver Act by inserting a new ‘KiwiSaver status’ definition
covering the information employees have to give to their employer
(whether or not a member of an existing KiwiSaver scheme,
deduction rate if already a member, whether on a contribution
holiday or wish to cease deductions (by providing a non-deduction
notice) or have chosen to opt out of a scheme). New members
must also provide information as required by the Commissioner for Inland Revenue and nominate
a contribution rate. The Commissioner is to provide the necessary form.
FGC Newsletter: 12 April
Risk Assessment – the Mondelez Way
You can’t manage a risk unless you first identify it.
Mondelez International uses Risk Assessment as a
standard HSE tool. But what is Risk Assessment and how
does it benefit the business? Risk Assessment is a focused
examination of what, in the workplace, could cause harm to people or the environment. The
results of Risk Assessments help the business choose which preventive/corrective measures are
most appropriate to control the risk with the benefit being that this is a proactive process, not a
reactive one. While a risk assessment may be documented to cover a legal requirement, it should
be viewed as a highly valuable tool which has the capacity to achieve much more. Risk
Assessments are a means of engagement, involving health and safety representatives and subject
matter experts in the process of identifying risks in their workplace and controlling them.
A Mondelez Example – Sales Fleet Driving Safety: A significant risk was identified highlighting
frequent low-level incidents and vehicle damage linked to driver behaviour at a significant cost to
the business. A tailored Driver Safety Programme was created to equip our sales drivers with best-
in-class education and practical training to ensure safe driving is always front of mind and part of
the way we work. After a successful launch, employees are showing a reduction in vehicle
incidents and an increased awareness on the road, benefiting all New Zealand.
View Mondelez’s Risk Assessment worksheet on the FGC website
Developing a Workplace Domestic Violence Policy
An initiative has been launched to help companies implement domestic
violence policy and develop toolkits in their workplace. Business
Working to End Family Violence was set up by a group of companies,
including Fonterra, The Warehouse and Countdown. Their website
highlights the cost to business of employees who are subject to family
violence (estimated at $368 million in 2014 in lost productivity,
cover for sick days, and recruitment/retraining when victims are unable to keep working),
identifying those who may be suffering from family violence and the risk they pose, the benefits of
having a workplace policy that enables additional leave, flexibility for someone worried about
safety at work, and making counselling available. The site offers a template for developing a
workplace family violence policy, as well as a wide range of resources and examples, including
research and contacts of those who have already developed a policy, links to MBIE to ensure a
policy is in line with the law, and Shine’s guidelines on procedures. Check it out on the website.
Assessing Reliable, Quality H&S Advice
Companies can access reliable and quality health & safety advice and services on
the Health & Safety Association of NZ (HASANZ) Register of Workplace Health &
Safety Professionals website. It is New Zealand’s first national, online register of
verified workplace health and safety professionals, and was formed following
recommendations by the taskforce looking into New Zealand’s poor health &
safety record following the Pike River disaster. It works by matching businesses
with workplace health & safety professionals, providing access to a wide range of
FGC Newsletter: 12 April
expertise. The search function provides several ways to find the right adviser: a keyword search
(eg, “asbestos”), an advanced search for professionals in one of three categories, a specific injury
or health issue (eg, poisoning or depression), a specific health or safety subject (eg, bullying or
fatigue), or a guided search using a series of questions. Only individuals, not companies, can list on
the Register because it’s the competence of the adviser that counts. Businesses need to be able to
identify qualified professionals – both consultants and in-house practitioners – with proven,
relevant experience and specific skill sets to provide the right advice for better health and safety
management. The Register was developed by HASANZ with funding from WorkSafe and ACC.
HASANZ says greater use of quality-assured health and safety professionals will help reduce the
risk of serious harm and fatalities in workplaces. See more on the website.
Pacific cultural engagement in nutrition
The Food Industry Taskforce recommended companies try to target community activity to Maori
and Pacific Island communities where feasible. One way to do that is to take a Workforce nutrition
course - Pacific cultural engagement in nutrition. This course is open to health professionals as
well as people who assist, support and offer advice to Pacific communities. It will assist with
effectively and appropriately engaging with Pacific people and will aim to demonstrate what you
need to know about engaging with Pacific people, the challenges and barriers to engagement and
effective ways to engage. Registration closes on 2 May 2019 for the event on Thursday 9 May,
9:00am - 2:00pm at the Heart Foundation National Office, 9 Kalmia Street, Ellerslie, Auckland. Cost
$40 NZD (inc.GST). Only one ticket per person. Register here: I'm Interested!”
Half Year Meeting – Annual General Meeting
The Half Year meeting is the time to think about what working groups you would like to participate
in and for leaders whether they would like to be considered for the board. The AGC this year is
May 16 at Eden Park in Auckland. If you would like to register your interest for working groups
and other offices please contact the FGC office.You can also read
