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fmcgbusiness.co.nz L E A D I N G I N D U S T R Y N E W S FEBRUARY 2021 – Volume 8 – No 1 PLUS! LEADERS FORUM n PACKAGING & DESIGN n HEALTH & WELLNESS n NEW ZEALAND’S LARGEST FMCG AUDIENCE
contents FEBRUARY 2021 UP FRONT 29 PROFILE 4 EDITOR’S NOTE DAKOTA - a client-centric agency 6 INDUSTRY NEWS 30 LEGAL ADVICE NZ’s leading court rules on 8 MOVERS & SHAKERS directors’ duties 9 TECH 31 LEADERS FORUM Trend predictions and advice SPECIAL FEATURES for 2021 14 GOOD EGGS 10 Trend forecasts from local EVENTS egg suppliers 46 OUT & ABOUT 18 OUR DAILY BREAD Our people at work and events What’s driving sales in our 47 IT’S NZ ICE CREAM MONTH bread aisles? 47 WHAT'S ON IN 2021 REGULARS 10 HEALTH & WELLNESS COVENIENCE & IMPULSE RETAILING 11 COVER STORY 48 CELEBRATING THE VALUE OF New UP&GO Dairy Free is finally here! THE CONVENIENCE STORE 12 BEST IN SEASON 49 LOCATION, LOCATION, Fresh produce update LOCATION Dave Hooker, NZACS Executive 13 NEW NORTHLAND PROJECT Director, says there is no FOR PIC’S PEANUT BUTTER substitute for convenience 44 GOOD BUSINESS 50 Q&A Night ‘n Day General Manager, 21 INDUSTRY NEWS Matthew Lane on the backbone AND INSIGHTS of convenience 22 PROFILES 52 MEET THE 2020 PETER 13 24 FEATURE JOWETT SCHOLARSHIP Expert tips for new packaging WINNER: ROWAN LOWE & design 53 Q&A 28 FMCG BUSINESS PRODUCT Mark Scott highlights some of OF THE YEAR the most successful new product First finalist for 2021 revealed launches from 2020 45 FMCG BUSINESS - FEBRUARY 2021 3
[ editorial ] WELCOME TO 2021! I hope you had a chance to take a break, spend time with family and friends and recharge your batteries over the holidays. PUBLISHED BY C&I Media (NZ) Ltd 2020 has been a challenging roller coaster ride for the entire world, so what will the PO Box 109 342 Newmarket, Auckland 1149 new year have in store for us? MANAGING DIRECTOR This special edition of FMCG Business includes our annual Leaders Forum, which Simon Grover is designed to help you and your team navigate confidently through 2021 with advice COMMERCIAL DIRECTOR and trend predictions from Ministers, the FGC, IRI, Nielsen, and many other Safa de Valois safa@c-store.com.au industry experts. EDITORIAL DIRECTOR Now is the time to focus on products that satisfy the needs of changing consumer James Wells behaviours. As a result of the ongoing COVID pandemic, consumers will still be very james@intermedia.com.au concerned about safety, wellness and hygiene. We expect to see more products with HEAD OF CONTENT Tamara Rubanowski health benefits and innovative mental and emotional wellbeing solutions. Shoppers will trubanowski@intermedianz.co.nz ph: 027 278 4761 also look for small indulgences and more purpose-driven initiatives that support people, MANAGING EDITOR – C&I NZ the planet and sustainability. Deb Jackson The launch of UP&GO Dairy Free (as seen on our cover) comes at a time when New d.jackson@c-store.com.au Zealanders are increasingly looking for plant-based alternatives for their favourite foods. NATIONAL SALES MANAGER Vicky Bennett Time-saving solutions continue to be valued by shoppers and there is a desire for easy vbennett@intermedianz.co.nz on-the-go, impulse and spontaneous occasions and the simplicities of pre-pandemic ph: 021 626 115 life. The events of 2020 highlighted the value of convenience stores, which are vital for SALES DIRECTOR Wendy Steele smaller communities more than ever. wsteele@intermedianz.co.nz ph: 021 300 473 Look out for the latest convenience and impulse news on pg 48-55 in this issue. ART DIRECTOR We hope to bring you more updates from this growing sector in future editions of Leanne Hogbin FMCG Business. leanne@intermedia.com.au Please join our daily conversations on Facebook, Instagram, Twitter or Linkedin, or PRODUCTION MANAGER Jacqui Cooper email us to share your news – we’d love to hear from you. jacqui@intermedia.com.au Enjoy this issue, PUBLISHING ASSISTANT & SUBSCRIPTION ENQUIRIES Eclypse Lee elee@intermedianz.co.nz C&I Media takes its Corporate and Social Responsibilities seriously and is committed to reducing its impact on the environment. We continuously strive to improve our Tamara Rubanowski environmental performance trubanowski@intermedianz.co.nz and to initiate additional www.fmcgbusiness.co.nz CSR based projects and activities. As part of our company policy we ensure that the products and services used in the manufacture of this magazine are sourced from environmentally responsible suppliers. This magazine is printed on Impress stock from Spicers Paper using FSC-MIX source pulp from responsible sources and other controlled sources. We print using BIO-inks that contain base materials from renewable resources including wood resin (rosin, colophony), vegetable oils, linseed oil and soy bean oil. This magazine is printed by ICG, an Toitu enviromark gold certified printer. The wrapping used in the delivery process of this magazine is biodegradable. ISSN 2382-1663 ON THE COVER The launch of UP&GO Dairy Free comes at a FMCG Business is audited and verified by ABC. time when New Zealanders are increasingly DISCLAIMER looking for plant-based alternatives. This publication is published by C&I Media (NZ) Ltd (the “Publisher”). Materials in this publication have been created by a variety of different entities and, to the extent permitted by law, the Publisher accepts Find out more on pg 11. 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, FMCG BUSINESS IS PROUDLY ASSOCIATED WITH statements, assurances and representations in relation to the Publisher, its publications and its services are expressly excluded. To the extent permitted by law, the Publisher will not be liable for any damages including special, exemplary, punitive or consequential damages (including but not limited to economic loss or loss of profit or revenue or loss of opportunity) or indirect loss or damage of any kind arising in contract, tort or otherwise, even if advised of the possibility of such loss of profits or damages. While we use our best endeavours to ensure accuracy of the materials we create, to the extent permitted by law, the Publisher excludes all liability for loss resulting from any inaccuracies or false or misleading statements that may appear in this publication. Copyright © 2021 - C&I Media (NZ) Ltd 4 FMCG BUSINESS - FEBRUARY 2021
[ news ] SECOND METRO STORE IN WYNYARD QUARTER Countdown’s new Metro store in 2020, and on this side of the has opened in Auckland’s growing inner city there’s been a notable lack Wynyard Quarter, in perfect time for of choice for people, whether that’s the upcoming America’s Cup. the growing number of people who The 650 square metre Metro on live in the Wynyard Quarter or the the corner of Halsey and Pakenham thousands of people who work here streets is Countdown’s second every day. smallest store, but it has been “It’s already proving to be a busy specially designed to pack a punch summer on Auckland’s waterfront with more than 4500 products with Kiwis making the most of our which have been tailored to the own country, and the America’s growing residential population Cup action is going to make this nearby, as well as local workers part of the city a fantastic place to and commuters. (L to R) Metro Store Manager Lua Sao and Countdown’s be in the months ahead,” Acting General Manager Property Matt Grainger Metro Albert Street has been up says Grainger. and running since December 2019, Along with a select range of and Countdown has also recently announced a brand-new Metro for supermarket staples, fruit and veges, meat and bakery items, the new Jervois Road in Herne Bay, which will open later this year. Metro also has a comprehensive range of ready-to-go meals, freshly Matt Grainger, Countdown’s Acting General Manager Property, says made sandwiches, barista made coffee, salads, health-focused snack Wynyard Quarter has a unique customer base who are looking for more options and take-home dinners. variety as well as staples in the inner-city. Metro Halsey Street will trade from 6am to 8pm Monday to Friday, “Supermarkets became an even more integral part of people’s lives and 8am to 6pm Saturday and Sunday. NEW YEAR, NEW STORE REFURB FOR NEW WORLD NEWTOWN To welcome in the New Year, New World customers exclusive fuel and grocery deals, Newtown are commencing work on a major as well as hosting a community sausage sizzle store-wide refurbishment, keeping the store every Saturday during the refurb.” open and trading throughout the duration of The refurbishment will see improved the works. With a scheduled completion date convenience for the store with the latest of December 2021, customers will see the technology installed, additional self-serve store transform over the next year. checkouts, meal solution hubs, fast track Nestled in the heart of Newtown Village, shopping routes, improved store layouts, the refurb is a considerable investment, seismic strengthening works making the providing a brand-new retail environment building safer, a new health and wellbeing tailored to the needs of the Newtown area, increased focus on fresh foods, and an community in Wellington. on-site coffee stand. Mark Troup-Paul owner operator at New “With all the changes happening in-store, World Newtown says, “We’re thrilled to be we’re wanting to reassure customers that we starting work on our store-wide refurb, as will remain open throughout the duration of it gives us the opportunity to innovate and the refurbishment and will continue to keep expand what’s on offer for customers in-store. shelves well-stocked with grocery essentials “While renovating, we’re asking customers in 2021,” says Troup-Paul. to please bear with us as we make changes (L to R) Owner operators Charlotte Newtown’s refurb is set to be complete in and Mark Troup-Paul with their son. in-store, and in return, we’ll be offering December 2021, just in time for Christmas. FOR MORE INDUSTRY CHECK OUT NEWS FOLLOW US ON WWW.FMCGBUSINESS.CO.NZ 6 FMCG BUSINESS - FEBRUARY 2021
Reconnect-Renew-Rebuild 11-12 AUGUST 2021 Melbourne Convention & Exhibition Centre RESCHEDULED DATES For Australia’s largest and most important trade event for Convenience retailers, open to all banners and brands. For more information visit www.candiexpo.com.au
[ movers & shakers ] NEW CHIEF T&G TRANSFORMATION APPOINTS OFFICER FOR FRUCOR NEW CFO Frucor Suntory has appointed James Houston as Chief Transformation Officer, taking the reins of the company’s newly established Transformation Office. Houston has been with Frucor Suntory for more than three years, joining as Chief Supply Chain & Quality Officer with responsibility across all elements of the supply chain, before leading the ANZ sales teams as Chief Commercial Officer in 2020. He has more than 30 years’ FMCG experience – 26 of them within the brewing industry. James Houston has been appointed as Frucor Frucor Suntory’s Transformation Suntory’s first Chief Transformation Officer. Doug Bygrave Office will be responsible for leading and coordinating programmes to accelerate the company’s growth ambitions – and Houston is T&G Global has announced that Doug Bygrave looking forward to leading the charge. will become Chief Financial Officer, effective Based in Sydney, James will remain part of Frucor Suntory’s Executive Leadership Team. 1 March 2021. He will succeed Bastian von Streit, who is returning home to Germany to take up the position of Chief Financial Officer Global Produce with BayWa AG. NEW MASTER JUDGE Currently Company Secretary, with additional responsibility for risk and treasury, FOR NZ CHAMPIONS OF Bygrave has been with T&G for over 24 years. In this time, he has held senior finance CHEESE AWARDS business roles across the entire business and also run shared services. T&G Chief Executive, Gareth Edgecombe, New Zealander Jason Tarrant has been says Bygrave’s extensive commercial acumen announced as the Master Judge for the NZ and deep knowledge of T&G and the dynamics Champions of Cheese Awards 2021. Tarrant of the business will be a great addition to is the first New Zealander to be head the Executive team. “Doug has a strong judging for the NZ Champions of Cheese understanding of how T&G operates and is fully Awards following the eight-year reign of committed to our success. His integrity and Australian Cheese Judge Russell Smith. ability to cut through data to get to the truth of The Awards are owned and organised by performance is highly valued by myself and the the New Zealand Specialist Cheesemakers Board, and his recent work leading our three- Association (NZSCA) and NZSCA Chair year global strategic planning process and cost Neil Willman thanked Jason Tarrant for reduction programme has proven him to be a stepping into the role. “It’s wonderful to strong internal successor,” says Edgecombe. have a local Master Judge of the calibre of Jason Tarrant, Master Judge for the In recognising the invaluable contribution Jason, his experience and knowledge of NZ Champions of Cheese Awards 2021 made by Bastian, Edgecombe said: “Since joining the NZ dairy industry is extensive.” T&G in October 2018 as we were embarking on Tarrant is General Manager of Technical and Strategic Projects at Open Country Dairy, a our transformation, Bastian has helped improve role he assumed last year. It follows a dairy industry career which began as a management the underlying performance of the business. trainee at Mainland in 1993. Since then, he has worked for multiple iconic New Zealand “Under his leadership, we have freed up dairy companies including Fonterra, Whitestone Cheese Company, NZ Organic Dairy capital to invest in growth areas, strategically Company, Open Country and Goodman Fielder. Tarrant’s experience covers all forms of acquired Freshmax New Zealand and cheesemaking from speciality and organic to commodity cheddar. transformed our finance function. Bastian’s Tarrant said; “I’m proud to take the mantle of the Master Judge and assist the panel of contribution has helped create a strong experienced judges assess New Zealand’s finest cheeses. After having judged at the NZ financial platform for our future success, and Champions of Cheese Awards for a number of years I appreciate how robust the judging we greatly look forward to working closely system is. It’s not about one person it’s about the cheese and the judges on the day.” with him in his new role with BayWa AG.” 8 FMCG BUSINESS - FEBRUARY 2021
[ tech ] COUNTDOWN’S NEW TECH MAKES ONLINE SHOPPING FIVE TIMES FASTER Countdown has unveiled the next generation of online shopping in New The new technology marks the completion of New Zealand’s first eStore, Zealand, with brand new technology that sorts and moves products which rushed to open in April 2020 to help meet the unprecedented directly to its team of 200 personal shoppers in Countdown’s Penrose demand caused by the first COVID-19 lockdown. eStore in Auckland. The 8800sqm store in Auckland’s Penrose looks much like a regular Known as micro-fulfilment centres, the state-of-the-art automated supermarket, complete with a deli, bakery and fresh fruit and vegetables, storage units can hold up to 11,000 of the most in-demand grocery but instead of customers, the aisles are filled with a team of personal products, enabling Countdown’s personal shoppers to access these shoppers, including 105 who were brand new hires to the company. easily without having to walk up and down different aisles. Fresh food Operating 24 hours a day and seven days a week the store has been and perishables such as fruit, deli, bakery goods, vegetables and meat able to fulfil more than 7,500 orders each week since it opened thanks will continue to be hand-selected to order. to a carefully designed layout based on sales data. The introduction Countdown’s Acting Managing Director, Sally Copland, says the of the new micro-fulfilment centre will increase that capacity to up to continued growth of online grocery shopping provides an opportunity to 15,000 orders each week. re-imagine what the future of good service looks like for customers. The micro-fulfilment centre is provided by Boston-based Takeoff “Our customers’ expectations continue to rise and we’re investing Technologies. The Penrose eStore is the first of two New Zealand sites to trial in new technology that is focused on providing an even more smooth the automated capability with the Countdown Moorhouse in Christchurch and convenient online offer for Kiwis, and keeping pace with growth,” also set to trial the technology when it opens in March this year. says Copland. “Plans for our eStore were in place well before last year’s lockdown, “Micro-fulfilment technology will help us pull together packaged but when COVID-19 reached Aotearoa it became critical for us to speed goods in minutes, saving our personal shoppers precious time to select up the timeline,” says Copland. quality fresh produce, meat and other perishable items. Our expert “Now that our order numbers have stabilised we’re thrilled to deliver personal shoppers are trained to shop as carefully as they would when the micro-fulfilment element to increase efficiency, reduce pressure on our shopping for their own families, and now they’ll be able to serve twice personal shopping team and get deliveries to our customers even faster.” as many customers with that same attention to detail. Countdown’s Penrose eStore services online delivery orders from the “The technology is designed to help us deliver unparalleled speed following Auckland supermarkets: Mt Wellington, St Johns, Three Kings, and accuracy, and also keep us close to our customers for faster Mt Eden, Botany, Manukau City Mall, Meadowlands, Manurewa and and more flexible home deliveries. This speed is key to increasing Highland Park. the availability of same-day deliveries that more and more of our Online Pick-Up orders in these areas are fulfilled and collected from customers want,” says Copland. local stores. FMCG BUSINESS - FEBRUARY 2021 9
[ health & wellness ] TRENDS TO WATCH IN 2021 Veganuary ushered in an auspicious start to the New Year, believed to be the biggest ever yet. With about 250,000 people worldwide signing up in advance it kicked off with half the number of last year’s unprecedented 400,000. Kiwis were as keen as ever to be taking the vegan challenge, finding many of their traditional favourites existing in vegan form. The opportunities for the plant-based market are massive. “The future is vegan and 2021 is certainly going to see increased interest in all things plant based as we endeavour to improve our sustainability,” says Vegan Society spokesperson Claire Insley. “Vegan foods and fabrics are set to increase production both in New Zealand and worldwide, as their greater sustainability and lower carbon footprint makes growing crops ever more important. Increasing the amount of plant-based food you eat is the simplest way to help mitigate climate change and one you have complete control over. “With the Labour government announcing a climate emergency recently, we should expect some changes in the way New Zealand Vegan options are popular. sustains itself. We need to build back better and address the climate curve, having mastered the COVID curve, if we want 2021 to be a better year than 2020,” says Insley. (Build Back Better). Nearly 70% of professionals expect consumers to be more concerned about sustainability than before COVID-19. Immune boosters • Find a new work-life balance, as remote collaboration redefines the Ongoing anxiety as a result of the COVID-19 pandemic will encourage traditional office environment (Workplaces in New Spaces). More consumers to prioritise their safety and immune health. than half of global consumers previously had a strict boundary According to the Innova Consumer Survey 2020, six out of ten global between work or school and personal life. consumers are increasingly looking for food and beverage products that • Gain newfound flexibility, scheduling activities in a non-conventional support their immune health, with one in three saying that concerns order to suit individual time demands (Playing with Time). about immune health increased in • Demand contactless services, 2020 over 2019. exceptional sanitation standards Immunity-boosting ingredients and products that enhance will play a significant role in hygiene and immunity (Safety the coming year, while research Obsessed). and interest in the role of the • Reassess priorities and identities microbiome and personalised in pursuit of a more fulfilled life nutrition as ways to strengthen and improved mental resilience immunity will accelerate. (Shaken and Stirred). Depression and mental health had a moderate Work life balance or severe impact on 73% of global Global market research company consumers’ everyday lives last year. Euromonitor International revealed “2021 will be a pivotal year,” trends that will define consumer says Alison Angus, head of lifestyles behaviour and influence business at Euromonitor International. strategies this year. They predict that “Tailoring strategies to these in 2021, consumers: emerging consumer trends will • Expect purpose-driven initiatives empower businesses to endure that support the triple bottom the unexpected and overcome We are finding a new work-life balance. line—people, planet and profits adversities.” 10 FMCG BUSINESS - FEBRUARY 2021
[ cover story ] NEW UP&GO DAIRY FREE IS FINALLY HERE! “THE LAUNCH OF UP&GO DAIRY FREE COMES AT A TIME WHEN NEW ZEALANDERS ARE INCREASINGLY LOOKING FOR PLANT-BASED ALTERNATIVES” After years of consumers requesting a non-dairy UP&GO, a new The launch of UP&GO Dairy Free comes at a time when New UP&GO Dairy Free range launches this month, introducing the much Zealanders are increasingly looking for plant-based alternatives for their loved product to a segment of the market who are dairy avoiders or vegan. favourite foods. Trish Guy APD, Senior Dietitian, Sanitarium Health “We have never had more requests from consumers for a product in Food Company Australia says: “Our team of dietitians have worked really our range as we have had for a dairy free option,” explains Kurtis Geering hard to create a nutritious, on-the-go solution to help give our dairy free UP&GO Brand Manager. “It’s been exciting to finally bring this one to pals the fix they crave.” market, and also that we have been able to engage our consumers in the “UP&GO Dairy Free has retained all the nutritional benefits in the development of this range via a Brains Trust group.” original UP&GO and is packed with nutrients, including protein, fibre, “With more and more New Zealanders turning to dairy-free lifestyles 10 vitamins and minerals including calcium and vitamin B12, which either out of necessity or out of choice, our research also brought to life are important nutrients for people following a dairy free/plant-based some hard-hitting realities of what it means to be someone who follows a diet. This makes it a great low GI option for busy mornings and active dairy-free lifestyle today. With our new UP&GO Dairy-Free, they don’t lifestyles. Plus, it’s also gluten free,” said Trish Guy. need to compromise; it contains all the goodness of original UP&GO UP&GO Dairy Free is available now in two flavours; Choc Ice and and the same great taste.” Vanilla Ice, in leading supermarkets. FMCG BUSINESS - FEBRUARY 2021 11
[ fresh produce ] BEST IN SEASON Our three main melon varieties - rock melon, honeydew refrigerated shelving 2-3 layers deep. Handle very and watermelon are all at their peak in February. Be sure carefully as their skins are easily damaged. Courgettes to display cut as well as whole melons. are ethylene sensitive, so store away from ethylene Blueberries, strawberries, blackberries, producing fruit and vegetables at 7–10ºC. Lower boysenberries and blackcurrants are fresh out of the temperatures will cause chilling damage. fields and are always in demand throughout summer. Nutrition: Courgettes are a source of folate and Central Otago summerfruit - apricots, peaches, niacin which help fight fatigue. They also contain plums, nectarines and cherries are still in good supply potassium which is essential for healthy fluid and this month so make the most of these beauties while mineral balance. they are in season. February is also the peak period for Californian Sweetcorn citrus in New Zealand with mandarins, Navel oranges, Sweetcorn is only around for a limited time from lemons and pummelo all available. New Zealand January to April. Several varieties are available including Encore mandarins will be around until March too. some with white kernels and others with a mix of yellow and white kernels, but the Honey & Pearl variety Passionfruit is still the most widely grown in New Zealand. Passionfruit are a rich, fragrant fruit What to look for: Choose sweetcorn with fresh known for their indulgent flavour and green husks and soft yellow to light brown tassels are available from February to July. - the darker the tassels, the riper it will be. Kernels They thrive on warmth and need a should be plump, pale and tightly arranged and will sheltered frost-free environment darken as the sweetcorn matures. for successful production. Purple Storage/handling: Sweetcorn is highly perishable passionfruit grow in subtropical so purchase quantities that can be sold quickly and regions and are the only variety keep under refrigeration where possible. Husks grown commercially in New should not be removed as this provides protection Zealand. Yellow passionfruit do from dehydration and dirt. Keep away from ethylene grow here but are better suited to producing produce like tropical regions. apples, bananas and What to look for: Passionfruit avocados. are ripe when they are plump, fully Nutrition: coloured and with a slight give. Wrinkled Sweetcorn fruit are very ripe and will have a sweeter contains a taste than smooth-skinned fruit. good source of Storage/handling: Passionfruit have a thick, dietary fibre, waxy skin so don’t bruise easily but they will become which supports marked if not handled carefully. Store at around 5ºC digestive health. to prolong life, however they will store for a couple of It is also a source weeks out of refrigeration. They are best displayed in of riboflavin which shallow containers alongside other exotics. helps keep red blood Nutrition: Passionfruit are a good source of dietary cells healthy. fibre and a source of vitamins C and E, which act as antioxidants to help protect the body against free radical damage. “SWEETCORN CONTAINS A GOOD SOURCE OF DIETARY Courgettes FIBRE, WHICH SUPPORTS Courgettes are also called zucchini and are available year-round, however the main DIGESTIVE HEALTH.” growing season is October to May. They are usually green-skinned but there are yellow-skinned varieties which are less available commercially. What to look for: Courgettes are at Join us on their best when 16-20cm long. Their skin should be glossy and blemish-free. Avoid any that show signs of softening or withering. www.unitedfresh.co.nz Storage/handling: Display courgettes in 12 FMCG BUSINESS - FEBRUARY 2021
[ fresh produce ] NEW NORTHLAND PROJECT FOR PIC’S PEANUT BUTTER (L to R) Declan Graham, Business Manager – Science at Plant & Food Research with Pic Picot, owner and founder of Pic’s Peanut Butter, and Fido. Popular New Zealand manufacturer Pic’s Peanut Butter is behind a we spend on imported nuts to Northland, easily my second favourite project that is assessing the feasibility of growing peanuts commercially region of New Zealand.” in Northland. In 2015, Pic’s “Big Toaster Tour”, en-route from Bluff to North Cape, The Ministry for Primary Industries (MPI) is contributing more than visited Dargaville, where Pic, his dog Fido and Amy the peanut butter $59,000 through the Sustainable Food & Fibre Futures fund to Picot fairy received an unforgettable welcome. Productions’ $91,320 project, which could bring new employment “We were treated like long lost whanau,” says Picot. “We were feted opportunities to the Northland region. The project will trial growing at the Kumara Box, sold every last jar we had at the Friday market, and peanuts in three locations – Ruawai on a kumara farm, Poutu Peninsular were presented with two 50-year-old cans of Toheroa Soup. I can think near Dargaville and on Māori land in the Kai Iwi Lakes district. of nothing finer than to help the Northland community establish a “We’ve selected three locations with different soil types and new industry.” environments to see where the peanuts grow best,” says Declan Graham, MPI Investment Programmes Director Steve Penno says MPI is excited Business Manager – Science at Plant & Food Research, which is to be involved in a project that could lead to a new industry in New managing the trials. Zealand. “This fits perfectly with SFF Futures’ goal of making a positive “A soil temperature of around 18 degrees is ideal, so the window for and lasting difference. Being able to grow peanuts domestically would be getting the peanuts in the ground and harvesting them is small.” a huge boon, both environmentally and in terms of creating new jobs for Spanish Hi Oleic peanuts, which have smaller kernels and reddish- New Zealanders.” brown skins, have been identified as the most appropriate cultivar for Peanuts act as a restorative crop within a crop rotation; helping to Northland conditions. reduce nitrogen fertiliser inputs and losses. As almost all New Zealand’s “This type of peanut is most widely used in confectionary and snacks, kumara crop is grown in the Kaipara District, crop rotation with peanuts as well as peanut butter production,” says Graham. “Their high oil would be highly complementary to kumara production. content makes them ideal for crushing.” Pic’s Peanut Butter currently uses approximately 2,500 tonnes of It has always felt a little weird to be making an iconic New Zealand peanuts each year. Based on Australian farmer returns a yield of four product with imported ingredients,” says Pic Picot, the company’s owner tonnes per hectare could have a gross income of around $5000 per and founder. “These trials have the potential not only to make a very real hectare, although it is possible that there could also be a grower premium difference to our carbon footprint but to redirect the millions of dollars associated with New Zealand grown peanuts. FMCG BUSINESS - FEBRUARY 2021 13
GOOD EGGS Local egg suppliers share their news and trend forecasts. Morning Harvest & New Day egg brands modern farming technology, ensure eggs of not only excellent quality, but are here to stay! also representing ‘local’, ‘community’ and ‘provenance’ are packed into Despite a recent shareholder change, the Morning Harvest & New every carton and tray. With consumers actively trending towards these Day egg brands are here to stay and are as strong and available as ever. attributes, Morning Harvest and New Day brands are growing year on year There has been no name change. Both brands are nationally available (+7% & +35% by volume respectively, MAT 3/1/21), and at the same to all stores throughout New Zealand. Produced and supplied by our time, providing employment for hundreds of people collectively across cooperative of 100% NZ-owned, regionally-based, family farms, both multiple regions of provincial New Zealand. brands are packed with locally-produced, fresh, quality eggs and delivered “In addition, Morning Harvest & New Day eggs are stamped in with reliability and care by your local family farm. accord with the ‘Trace My Egg’ compliance stamping programme General Manager Susan Bamfield explains: “As members of (www.tracemyegg.co.nz), allowing consumers to identify the exact source Independent Egg Producers Co-operative Ltd (IEP), NZ’s #2 egg farm of each individual egg.” producer, many of the farms have been in the same family for generations. To place your orders or for further info please contact 0800 787 327 As a result, an ongoing passion for time-honoured tradition coupled with or email info@independenteggs.co.nz 14 FMCG BUSINESS - FEBRUARY 2021
A FREE RANGE PA SS IO N o f o u r 10 0 % N Z OW N ED FA R M S udited d e p e n dently a In ith liance w for comp e lfa re al W the Anim Hens) (Layer Welfare. Code of We’re a community of family farmers who care ANTEE GUAR D passionately about our chooks & delivering the very GE best free range eggs to our customers throughout RE N New Zealand, backed by our free range guarantee. E RA F phone: 0800 787 327 email: info@independenteggs.co.nz
[ category insights ] Total market performance In New Zealand the annual per capita of egg consumption continued to rise from 227 eggs in 2019 to 239 eggs in 2020₁. A key driver contributing to this increase is that shoppers are increasingly looking for convenient, easy-to-use, natural protein sources. Kiwis have also been reducing their meat consumption, with a 15% reduction over the last decade₁ hence momentum is growing with shoppers looking for alternative, low-cost protein sources. Eggs are well positioned to gain a greater share of this growing number of health & wellbeing, conscious ‘meat free’ shoppers’ weekly meal repertoire. The importance of eggs as a staple food within households was also reinforced during lockdown as shoppers reached for and cooked with familiar foods that were versatile, trusted, affordable and nurturing₁. In the last 12 months New Zealand supermarkets sold over 57 million dozen eggs at a value of $285 million, representing +5.6 million dozen “We export to Singapore, Hong Kong and the (+11%) volume growth and +$11 million (+4%) Pacific Islands. Our products carry the ‘Fernmark’ value growth*. The free-range egg segment is – the New Zealand Government’s tick of approval predominantly driving both value (+13.7%) and and authenticity. All of our eggs are 100% traceable, volume (+24.1%) growth, generating $114 million stamped with a unique ID that is traceable back to in the last 12 months* as supermarkets transition the farm of origin. www.tracemyegg.co.nz. out of Intensive (cage/colony) eggs, in line with the Williams adds: “Farmer Brown is New Zealand’s new Codes of Welfare for Layer Hens regulations. favourite affordable protein* ranked number one in All conventional cage egg production will cease both volume and value in supermarkets. It is New completely in December 2022. Subsequently, we Zealand’s most trusted and well-known egg brand are seeing an increased number of new brands and amongst household shoppers. The category’s largest “IN THE LAST products in both free range and barn segments egg brand contributed +$74 million in retail sales in resulting in a decline in average sell price (down the last 12 months*. 12 MONTHS -$0.62* per dozen compared with a year ago₂), as “Farmer Brown is New Zealand’s No 1 egg brand* NEW ZEALAND producers lower prices as a primary mechanism to for lots of reasons and it’s a love affair that gets stronger cement their share of category. every-day. Consumer research₂ found that when SUPERMARKETS shoppers are in-store they use Farmer Brown brand as Sources: IRI MarketEdge Grocery, value & volume, MAT To 20/12/20 ₁Eggs Inc New Zealand. F21 Marketing Plan, July 2020. OECD report a signpost to assist them with navigating the egg aisle. SOLD OVER - NZ meat consumption 2007 and 2017. ₂IRI MarketEdge MAT to 22/12/19 compared with MAT 20/12/20. Farmer Brown’s distinctive, relevant and memorable packaging enables them to short cut their purchase 57 MILLION Zeagold Foods “Zeagold is New Zealand’s largest producer, marketer decision and is a key factor influencing purchase. “To ensure Farmer Brown continues to remain DOZEN EGGS and distributor of shell eggs and egg products, relevant to our core mainstream shoppers (household providing Kiwis with one third of the country’s shoppers with kids) and build brand reputation in the AT A VALUE OF affordable, nutritious eggs,” says Marketing Manager minds and hearts of Kiwi families we launched a new, $285 MILLION” Julie Williams. simple brand message – Farmer Brown New Zealand’s “We employ 450 staff, including 100 favourite affordable protein. To bring our brand story merchandisers who are in to life we rolled out a brand communications campaign over 450+ New Zealand across multiple consumer touch points consisting of a supermarkets – in some stores new look website: www.farmerbrown.co.nz. educating up to seven days a week. Kiwis on the affordable protein benefit of eggs, our “We are committed to wide range of products and appetising recipes. We being a responsible producer also revised our social media strategy with a focus on of premium quality, educating, engaging and exciting consumers. This natural eggs. It is an included the launch of #MyWayWednesday – a weekly integral focus of everything post that asks viewers to post and share a photo of we do for the long-term their egg dish made with Farmer Brown eggs. Each sustainability of our hens’ week a dish is chosen to feature as the hero dish in next welfare, the environment week’s post. Within the first 10 weeks of launch, we and the communities captured a total post reach of 101,978 suggesting that we live in. Kiwis really do like Farmer Brown eggs and the brand 16 FMCG BUSINESS - FEBRUARY 2021
[ category insights ] continues to resonate with them. A range of point of provided shoppers with a chance to win a KitchenAid sale (posters and offsite displays) have featured in stores mixer and $1,000 worth of Go Gardening vouchers. to prompt purchase and increase shopper’s basket value To create in-store theatre and inspire shoppers, we per shopping transaction,” says Williams. designed bespoke foiled packaging and festive-designed “Woodland free-range eggs continues to hold the point of sale supported with digital, social and PR number one ranking position within the free-range media activity pre and post the shopper journey. Look segment in both volume (20.1%) and value (21.0%) out for our fresh, new look Easter packaging hitting the share generating $24 million and +6.7% value growth stores soon,” says Williams. vs YA*,” says Williams. Sources: *IRI MarketEdge Grocery, value & volume, MAT To 20/12/20) “Our Woodland brand is more than just a name. ₂UBER Insights: Qualitative Research February 2018 By planting thousands of trees on the farms, not only do we provide shelter for our hens so they will forage Source: NIELSEN SCANTRACK Total Supermarkets - MAT to 27/12/2020 and roam further around the farm, we have created Val $ Sales Val % Chg YA a positive impact on our carbon footprint – and will TOTAL EGGS 282,971.83 3.64 continue to do so as the trees grow in size and as our STANDARD 139,734.78 -3.31 extensive planting programme continues. FREE RANGE 114,326.36 12.04 “To retain this position, we continue to invest in BARN 21,971.49 11.94 the brand to generate excitement, interest in-store and build brand love with new and existing, loyal shoppers ORGANIC 6,863.57 0.76 who are prepared to pay more for premium free range OTHER SPECIALITY 75.64 96.96 eggs. Our recent Christmas promotional campaign 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. Farmer Brown has real consumer pull. NZ’s favourite affordable protein. *IRI MarketEdge MAT to 20/12/2020 AVO U R sF I TE ’ NZ IN AFF TE Kiwis love their Farmer Brown eggs and it’s From cage eggs to free range, Farmer Brown R O O DA R a love affair that gets stronger every day. is the shopper’s friend, helping them make BLE P Shoppers know Farmer Brown will always have an informed choice. the choices they love, in your supermarket, at When you need consistent, reliable, fresh an affordable price. supply and a brand name shoppers trust, Farmer Brown is the most iconic* brand in the Farmer Brown is your first choice – just like Farmer Brown is their first choice. category, standing out on shelf, with established options in all major segments.
C OUR DAILY BREAD M Y CM MY CY What’s new and driving sales in our bread aisles? CMY K Our local supermarkets offered very limited options in the 1980s and A story with full flavour early 1990s and specialty breads weren’t easily available. You could choose A family-owned company of Mediterranean origins, Lahmajou’s rise from sliced or unsliced white sandwich bread - and if you were lucky from honest, humble beginnings to become one of New Zealand’s largest there was a wholegrain variant and a fancy oval white bread loaf from the specialised flat bread manufacturers and a major supplier to the New in-store bakery. Zealand food industry is a tale of Kiwi ingenuity and authenticity. Fast forward and today we’re totally spoiled for choice! From pita to Giannis Michaelides set sail from Cyprus in 1966. He arrived in ciabatta, bagels and wraps, our bread aisles now offer a multitude of Christchurch with only the clothes he stood in, a wonderful smile and delicious ways to get creative with bread. a healthy appetite for leavened bread his mother had taught him to make. 18 FMCG BUSINESS - FEBRUARY 2021
[ category insights ] “GIANNIS PRODUCE AND SUPPLY AN EXTENSIVE RANGE OF PITA BREAD, WRAPS, PIZZA BASES, TORTILLA AND NAAN BREAD But Giannis brought with him more than just Giannis produce and supply an extensive range PRODUCTS” his love of pita, he introduced to our pantries other of Pita Bread, Wraps, Pizza Bases, Tortilla and Naan wholesome, ethnic flatbreads from exotic lands bread products that are available in the New Zealand and earlier times. market, including gluten free options. The Giannis brand was established in 1991 and “We are always looking closely at the market continues to go from strength to strength nearly and consumer trends and will continue to develop Giannis-Trade-Ad-2020-11.pdf 30 years on. 1 6/11/20 12:24 PM new products to meet the market supported by an MADE IN NZ Giannis Breads are created from our own authentic Mediterranean family recipes using only the highest quality ingredients, making them... New Zealand’s Favourite Flat Breads. Email: simon@giannis.co.nz www.giannis.co.nz Honest food, made well.
[ category insights ] extensive marketing programme across Giannis social Off the back of these media platforms,” says Sales and Marketing Manager trends, Pams range of Simon Rangihaeata. pre-packed breads has He adds: “This kind of honest-to-goodness seen exponential growth, “PAMS philosophy, Kiwi No. 8 wire mentality, and refusal to particularly in their compromise the quality and integrity of the products superfoods and gluten- RANGE OF is fundamental to the way the Giannis family will free bread range. “We’re continue to run the business in 2021.” expecting to see these food PRE-PACKED For more background on the Lahmajou story go to trends continue into 2021, BREADS www.giannis.co.nz https://www.facebook.com/GiannisPitaBread/ with Kiwis predicted to continue prioritising their HAS SEEN https://www.instagram.com/giannisbreads/ For sales enquiries contact Lahmajou Sales and health and wellbeing,” says Steffensen. EXPONENTIAL Marketing Manager Simon Rangihaeata 021 854 091, email: simon@giannis.co.nz GROWTH, Health and wellbeing is top of mind PARTICULARLY Which new trends and products can we expect to see in 2021? IN THEIR Melissa Steffensen, Head of Brand and SUPERFOODS Channels at Foodstuffs Own Brands told FMCG Business: “With health and AND GLUTEN- wellbeing the theme for Kiwis back in 2020, food trends have pivoted with FREE BREAD more Kiwis reaching for gluten-free, paleo, and keto alternatives either out of RANGE” necessity or for health reasons. Source: NIELSEN SCANTRACK Total Supermarkets - MAT to 27/12/2020 Val $ Sales Val % Chg YA TOTAL BREAD $580,007.15 10.58 LIGHT GRAIN $127,210.86 8.16 WHITE BREAD $126,767.00 17.56 HEAVY HEALTH $73,506.59 9.52 Despite health trends impacting what Kiwis are MEAL $45,776.70 1.53 purchasing, traditional white bread remains popular WRAP $36,682.11 19.22 making up 30% of all supermarket bread sales. Known PLAIN BUNS & ROLLS $36,241.59 13.47 to help feed large households on a budget, white bread MUFFINS $19,429.15 17.02 continues to remain popular whether it’s used for kids’ CRUMPETS $17,615.34 7.08 sammies, eaten as toast, or as a summer BBQ staple. PITA $14,819.44 15.59 Steffensen says: “ Speaking of summer, BBQ OTHER SPECIALTY $14,530.68 -5.24 dinners and the trend of post-COVID fakeaways has BUTTERED BREAD $13,905.93 2.21 seen Kiwis recreate their favourite burgers from the comfort of their own homes. Pams has an excellent BAGELS $12,424.24 17.90 range of burger buns with their Pams Four Seeded INDIAN BREAD $7,920.72 13.07 Burger Buns and Pams Finest Glazed Brioche Style SWEET BUNS & ROLLS $7,708.52 13.96 Burger Buns. Kiwis love a good burger, and this alone FRUIT $7,689.32 -4.88 is driving category growth. PIKELETS $4,833.60 -12.21 For Kiwis looking to entertain dinner guests in the PAR-BAKED $4,631.71 16.65 cooler winter months, Pams Par-Baked Garlic Buffet EASTER BUNS $4,403.45 13.88 Rolls are a crowd favourite. Best eaten straight out of the oven and great alongside a nice bowl of homemade WAFFLES $3,910.20 8.27 soup, the chewy garlic rolls are not to be missed.” 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. 20 FMCG BUSINESS - FEBRUARY 2021
[ good business ] NEW WORLD BLENHEIM’S STORE-WIDE REFURB COMPLETE The store offers ‘Food in the Nude’ – a virtually plastic-free, fresh fruit and vege selection, where produce remains unwrapped from the farm to store shelves. Blenheim residents are in for a treat this summer with the completion of New World Blenheim’s store-wide refurbishment. The store has transformed over the past 14 months to expand what’s on offer in a new and modern retail environment. New World Blenheim owner operator Melanie Shore says, “We’re excited to share with New Zealanders what’s new in-store at New World Blenheim this summer. It was important to us to bring to life our new and improved retail offering in a more environmentally-friendly way, and we’re pleased to finally be able to share and enjoy it with the community.” One of the store’s new features includes an ecostore refillery station. Customers can now bring used ecostore bottles or pick up a dedicated refillable one to use over and over again, and refill them with wash and laundry detergents, providing a more sustainable alternative to purchasing a new and a freezer which has doubled in size. bottle each time. “After months of in-store disruptions, we’re The store has also implemented a ‘Food in thrilled to be able to share with customers the the Nude’ produce offering; a virtually plastic- new and improved store,” says Shore. free, fresh fruit and vege selection, where “During our renovation, the Blenheim produce remains unwrapped from the farm to community were incredibly patient, particularly store shelves. The produce retains its lovely when we were knee-deep in renovations colour and texture through a special misting during the March lockdown.” system, keeping it fresh without the need for Having serviced the Blenheim community plastic packaging. since 2013, this is the first major store Other exciting new features include a renovation Melanie and Ashley Shore have hydration station where customers can fill up undertaken. “We’re looking forward to seeing their water bottles, a revamped beer and wine how we can further cater to the needs of aisle with a specialised wine tasting machine, our community and are excited to serve New a new café and salad bar offering, as well as Zealanders from around the country as they new butchery, seafood, bakery and deli fresh check out what’s new in-store when they visit Owner operators Melanie and Ashley Shore departments, a new entrance, wider aisles Blenheim this summer,” says Shore. FMCG BUSINESS - FEBRUARY 2021 21
[ good business ] GREEN STAR RATING FOR NEW SUPERMARKET Countdown has started construction on new builds for Countdown going forward,” the country’s first Green Star supermarket says Grainger. in Richmond as part of its overall As part of aiming for a Green Star commitment to reduce carbon emissions rating, the store will include transcritical by 63% by 2030 (versus its 2015 baseline). refrigeration, LED lighting, solar energy, Green Star is an internationally- energy and water metering, connection to recognised rating system for the an energy management system, a focus design, construction and operation of on sustainable procurement and materials, buildings, fitout and communities. The and water conservation measures. new supermarket in Richmond has been While many of the green features in the designed, and will be built and operated, new store will be invisible to customers, the in a way that reduces negative impact on Green Star scorecard also measures things the environment and the people using it. like the quality of the indoor environment Matt Grainger, Countdown’s Acting and sustainable transport options, which General Manager Property, says there Countdown has taken into account in the has been a shift in thinking around how design with a focus on visual and audio stores need to be built as a way to comfort (glare, lighting, internal noise levels help meet Countdown’s 2030 carbon etc.), EV parking and a bus stop right outside. emission target. The new Countdown Richmond will “Green Star is a useful tool that has create around 120 jobs in the local area, helped us plan, design and build our Matt Grainger, Countdown’s Acting General Manager Property and also feature an online Drive Thru for Richmond store in a completely different Pick up, a Countdown Pharmacy, a focus way. It has encouraged us to try new technologies and building on accessibility, a cafe and other retail space. The brand new 3450sqm practices, and we aim to learn from this and apply these learnings to supermarket is expected to open in mid-2021. [ profile ] THERE HAS NEVER BEEN IN OTHER A BETTER TIME… FREE BLUEBIRD THE BIRD® NEWS… The sun is out, BBQ’s are hot and the know that once Chippy and the Bluebird Introducing NEW Bluebird Poppables®. Bluebird’s Bluebird Penguins are back! There has never chips come out, the people gather and the crispy, potato Poppables® will be love at first bite! been a better time to grow the snack foods fun starts”. This light-hearted fun campaign Light in texture, with an airy crispy crunch, these category. After almost a has already caught on with bite-size morsels are deliciously seasoned inside decade away, Chippy Kiwis all over the nation and out - and under 100 calories per serve. and his friends have when it was released Try these deee-lish potato snacks made to made a triumphant pre-Christmas across pop-pop-perfection! Available mid-February in return in a massive TV, cinema, digital and two flavours, Sweet Chilli & Sour Cream and brand new campaign, online video, out-of-home, Cheddar Cheese, in a 90g sharing bag and a Free The Bird®. social, radio and shopper convenient 35g individual serve. “This time around marketing. For the rest of we are encouraging 2021 the campaign will consumers to open their run on multiple platforms cupboards, unhitch to encourage Kiwis to their chilly bins and grab their favourite chip Free the Bird®”, explains brand and Free the Bird® Bluebird Foods NZ, with Bluebird. General Manager, Bluebird.co.nz Daniel Engeman. Phone 0800 652 583 “Because we all 22 FMCG BUSINESS - FEBRUARY 2021
[ profile ] SAFER DRIVERS WITH FLEETCOACH When organisations talk to Fleetcoach about driver training, one of the topics often raised is driver fatigue. Driving when you’re tired, you’ve had enough and you need to rest, is not just unpleasant; it’s dangerous. What makes driving while fatigued so hazardous? You might find that you’re slower to react, your mind wanders, and you make silly mistakes. It’s important that you’re on An example of how it could look to drive fatigued the lookout for both the early warning signs of when not to drive, and the more immediate signs that mean you really should get off Yet they all have an effect on a driver’s safety. Fatigued drivers are the road as soon as you can. more likely to lose concentration, to behave unpredictably, and to be Drivers can, and should, take steps to reduce their risk of fatigue, says less tolerant of other road users. That’s why Fleetcoach approaches Fleetcoach COO, Craig Cockerton. “Simple things like getting a good driver training from a wellbeing perspective, including a specific course sleep the night before your trip, taking breaks every hour or two, and about fatigue. sharing the driving will all help.” Fatigue behind the wheel is dangerous. This is something most But there are different kinds of tiredness. The tiredness from a bad people know. Fatigue is complicated. This is something that most people sleep is different to that from illness, and that’s different again to the probably haven’t thought about. flatness and lack of energy a person with depression might experience. Learn more at https://www.fleetcoach.com/fatigue. TAKE YOUR BRAND TO THE NEXT LEVEL IN 2021 WITH PR Public Relations is one of We created Chocolate the most powerful ways Dreams to distract children FMCG brands can grow during the COVID-19 awareness, build authentic national lockdown. We consumer relationships, received more than 2000 and increase sales. entries, with children In March 2019, Thorn designing their ultimate PR began working with the chocolate flavour and award-winning Wellington wrapper. The winner – Chocolate Factory (WCF) Orange Mustachio – was days before the Level 4 sold as a limited-edition Lockdown. In six short bar just before Christmas. months we: Aligned with WCF’s focus • placed more than 24 on innovation, it attracted stories in mainstream, widespread media coverage L – R Jacinda Thorn, Odette Coates, Heidi Van Wheeler and Rachel Prendergast lifestyle and food media, – including a story on • helped grow online sales Seven Sharp. As soon as it by more than 600% (compared to 2019) and began airing, viewers began buying from WCF’s online store, and sold a • took WCF’s share of voice to 18% – second in authority in the record amount of chocolate in just one hour. competitive NZ chocolate market. The data demonstrates a clear link between media engagement and Brands new to PR often ask, “What will be my return on investment?” sales. Through sustained PR & digital activity, traffic to WCF’s online PR in the digital age means companies can directly measure cut- shop grew by almost 250% in 2020 (compared to 2019). through and sales online. WCF’s Chocolate Dreams Competition is the If you’re looking to take your company to the next level in 2021, we’d perfect example. love to help. You can email us at hello@thornpr.co.nz FMCG BUSINESS - FEBRUARY 2021 23
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