FMCG April 2011

N a k e d p a n d a _ F M C G _ c o v . p d f P a g e 1 3 1 / 0 3 / 1 1 , 1 : 3 3 P M

THE BUSINESS OF MANUFACTURING LOGISTICS SUPERMARKETING

April 2011 Volume 17 No 3 $9.15

INCORPORATING

F M C G . C O . N z F O O d N E w S . C O . N z

942

1902

2510

16

Only 7% sugar Fruit Free and low in fructose & glucose Naturally sweetened with zero-calorie Stevia

Luxury nuts & seeds including almonds, cashews & macadamias

Meet The Needs Of Your Customers With GreatInnovation From NZ's #1 Premium Muesli Brand

Smartfoods Limited, 3-5 Farmhouse Lane, St Johns, Auckland, NZFreephone: 0800 EAT WELL (0800 328 935)

[email protected] 021 244 4097 Contact: Tracey Thompson For further information about this and other VOGELS productsvisit our website: www.vogels.co.nz

Vogels Caf-Style range has been a consistent performer growing more than 25% MAT everyyear for the last three years. Our no-compromise cereals encourage shoppers to trade up to a higher $/kg products, meaning better margins for you.

Delivering Profitwith High $/kg

NEW

Make sure Caf-Style has exposure on your shelf.3500000

3000000

2500000

2000000

1500000

1000000

500000

0

$

MAT to02/03/08

MAT to01/03/09

MAT to28/02/10

MAT to27/02/11

TOTAL CAF-STYLE

+37%+27%

+40%

Vogels Caf-Style Light Luxury Nuts & Seeds offers shoppers strong health benefits with no compromise on taste. We have combined Vogels traditional mixed grain goodness and premium nuts with a zero-calorie natural sweetener made from the Stevia plant. At only 6.6% sugar, Vogels Cafe-Style Light Luxury Nuts & Seeds has significantly lower levels of sugar than comparative products making it truly suitable for anyone wanting to manage their sugar intake, including Diabetics.

Sugar Content(g/100g)SUGAR COMPARISON

Caf-Style Light Luxury Seeds & Nuts 6.6

AVERAGE Sugar Content of Top 10 Muesli Products 21.2

Source: Aztec, based on ranking by value, TKA National, QTR 27/02/11

Source: Aztec TKA National MAT 27/02/11

C

M

Y

CM

MY

CY

CMY

K

SMART CS Zero DPS FMCG FA.pdf 1 29/03/11 10:41 AM

MUS0259_275x210_FMCG_April_2011.indd 1 24/3/11 11:00:10 AM

54

OUR COVER This new, microwaveable range of

convenient snacks and meals comes in 200g pouches and 350g boxes

in eight great tasting flavours.

62

6 Editors note8 Industry news17 FMCG online19 Subscription form43 Whats hot

Features14 When it all came tumbling down

A case study from Coca-Cola Amatil

28 Free to range? Animal welfare issues in New Zealand

50 Are you advertising to children? Expert legal advice from Hudson Gavin Martin

Category checks22 Soups32 Hot beverages38 Breakfast cereals

Regulars13 FGC

Incredible response efforts

16 Nargon Supporting Canterbury

10 cont

ents

AP

RIL

20

11

53

63

31

cont

ents

AP

RIL

20

11

18 Fresh and local In season

20 Deli counter How to make the most of your deli counter?

46 Grocery business Keeping you up to date with packaging, IT, supply chain and logistics

64 Snap Spotted out and about

65 Diary Your guide to upcoming industry events

52 Feature Looking at the evidence

54 Industry news57 Directory

58 Feature Easter Show Wine Awards 2011

62 Industry news

Todd Heller

June July

T.V

needs great newPACKAGING

BACON...

Our new look 100% New Zealand Free Farmed bacon

range, Streaky, Ribeye Rashers and top selling favourites

Middle Eye and Middle Rashers, will soon be in the chillers.

The new premium packaging features Hellers unique new

rigid packs with an easy-peel top and layered bacon for

much better display. Were going to have a big push to

launch the bacon T.V ads in June and July so stock up to

take advantage of the new look packaging its going to y

out of the chillers brilliant! As sure as Hellers!

BIG BACON ADVERTISING

Great tasting

editor s note

Incorporating

Serving the business of manufacturing, logistics and supermarketing

ISSN: 1175-8279 (Print), 1179-8718 (Online).

Mediaweb LimitedPO Box 5544Wellesley Street, Auckland 1141Phone 09-845 5114Fax 09-845 5116www.mediaweb.co.nz

PublisherUsed on a white background

Used on a black background

Official b2b magazine for the Gluten Free Food & Allergy Shows.Media sponsor: Pride in Print Awards.

The opinions and material published in FMCG are not necessarily those of the publisher except where specifically stated.

2011 Mediaweb Limited.

tamara rubanowski editor [email protected]

ashley kramer senior account manager Mob: 021 211 1936 [email protected]

Peter corcoran account manager Mob: 021 272 7227 [email protected]

Production managerFran Marshall (09-832 0024)[email protected]

designCherie Tagaloa

[email protected] 09-845 5114$90.00 a year (incl GST) for 11 issuesAustralia $150.00Rest of the world $190.00

Printing & Pre-PressBenefitz

Vol 17 no 3 aPril 2011 issn 1175-8279

The price of freedomOn average each person in New Zealand will consume 224 eggs in a year.

As a protein food they are great value for money, with the added advantage of being easy to prepare and readily available.

While consumption of free-range eggs has increased in the last decade, there has also been a significant increase in volume of caged eggs consumed in the same period, illustrating the importance of food afford-ability for consumers.

Currently the majority of eggs consumed in New Zealand are from caged hens (88%). Free-range eggs account for 10.6% and barn eggs 1.4%.

Chairman of the Egg Producers Federation, Michael Guthrie, told FMCG that the Federation, which represents all commercial egg producers in New Zealand, supports and promotes the Code of Welfare for Layer Hens to all members.

This Code is currently under review by MAFs National Animal Welfare Advisory Committee and its recommendations are now being circulated for public comment.

The key recommendation, to gradu-ally phase out conventional cages, is con-sistent with the industrys own direction, says Guthrie.

The industry recognises that conven-tional cages limit birds ability to express natural behaviour and have been looking at alternatives for some years. Until the recent development of the colony system there has not been a viable alternative that allowed more natural behaviours without push-ing eggs beyond the means of the general consumer. However, careful consideration around the timing of any transition is vital

to ensure both consumers and egg farmers are not adversely impacted by the changes, explains Guthrie.

We take a closer look at animal welfare in New Zealand on pages 28-31 in this issue.

Investigating new developments in the food industry is usually one of the perks of my job, but there is also a downside. As a seasoned editor with more than 10 years experience in the FMCG sector, my weekly grocery shop often turns into a major re-search mission. My partner no longer wonders why I spend several hours at the supermarket I just cant help looking at the seafood counter with a critical eye and scanning the aisles for new products.

Imagine my concern when on a recent visit to my local supermarket on a busy Saturday morning, I found many of the shelves bare. Even tuna cans and margarine were nowhere to be found.

Had I missed breaking news of an im-pending civil disaster in Auckland?

The answer to the mystery was quickly found when I asked for the store manager. He had gone on holiday for two weeks and his staff had simply failed to fill the shelves that morning.

So this begs the question: how reliably will your team step up and cover for your store manager, when he or she is absent?

Ongoing staff training is vital in our indus-try. Some employers are now implementing programmes that result in greater accuracy, fewer damages, improved customer service and health and safety compliance.

Enjoy this issue and our updates on www.fmcg.co.nz.

Tamara [email protected]

news

8 FMCG april 2011

ALDI AustrALIA turns 10This year marks an important milestone in Australian grocery

retail history the 10th anniversary of ALDIs entry into the

Australian marketplace.

With over 250 stores now operating on the east coast of

Australia, ALDI group managing director Tom Daunt says it has

been a busy 10 years for ALDI.

We were faced with the initial challenges of gaining access to

sites and getting suppliers on board, but since then we have

constantly focused on our offering and bringing Australians

the benefits of what we call Smarter Shopping our

philosophy of high quality exclusive brands at permanently

low prices, he says.

We have provided Australian shoppers with a genuine

alternative to the major supermarket chains by offering

exceptional quality products at previously unheard of prices.

When we first opened in Australia, for example, the cheapest

loaf of bread sold by our national competitors was A$2;

10 years later we still sell our 650g loaf of bread for A$1.09.

This, with a Consumer Price Index (CPI) increase of 31% in the

same period!

Our exclusive branded products today are often 25%-40%

cheaper than the branded products they compete against.

When it comes to top quality products at incredibly low

prices, consumers will struggle to find a better alternative, he

says.

All ALDIs Australian profits are reinvested in the Australian

business to continue to grow the store network and keep

prices low. The majority of ALDIs products are Australian

made: 100% of meat, 97% of dairy and 97% of fruit and

vegetables are sourced from Australian producers and

suppliers.

ALDI has contributed to the Australian economy by directly

and indirectly creating thousands of jobs since it first opened

10 years ago, says Daunt.

We wouldnt be where we are today without the passion

of our people, the loyalty of our customers, the support

provided by our suppliers, and more broadly by government,

he says. l

nosh opens In hAmILtonMarket-style grocery shopping has arrived in the Waikato

with the opening of Nosh Food Markets new Hamilton store,

in March.

Nosh has seen sensational growth in Auckland and the

Hamilton store is the companys sixth to open in five years.

The new store, located on the corner of Mill and Ulster Streets

in Hamilton Central, is modelled on Noshs flagship Dominion

Road market in the Auckland suburb of Mt Eden. It carries

the full Nosh offering of the highest quality fresh produce,

butchery, bakery and delicatessen, at competitive prices.

The company has been busy recruiting locally to fill all of the

20 staff positions required to run the store seven days.

Nosh co-founder Clinton Beuvink says Kiwis are embracing

the affordable prices of market-style shopping.

Markets have really taken off. You can see it in the success

of the farmers markets springing up in rural areas. With Nosh,

urban shoppers can get the same fresh produce and personal

service their country cousins enjoy.

Hamilton food lovers can now get the authenticity and

expertise of the traditional butcher, the baker, deli, and

greengrocer on one site.

We employ qualified, passionate and food-loving people

who are willing to

provide the customer

with a great shopping

experience, Beuvink

says.

Noshs emphasis on

quality food and

produce at affordable

prices also appeals to

modern household

shoppers who are

becoming more creative

in the kitchen,

Beuvink says.

The produce section

houses an array of fresh

seasonal fruit and veg, and the deli has a wide selection of

cheeses, meats, olives and other offerings.

The Blackrock Butchery stocks the finest quality meats and

champions traditional butchery practices. It specialises in

aged beef, NZ lamb, poultry, free-range Freedom Farm pork

and award-winning sausages. l

TM Rugby World Cup Limited 2008 2011. All rights reserved.

pride.www.cokecareers.co.nz

our team, your talent,

lets talkSo were on the lookout for talented FMCG professionals particularly those with excellent sales and supply chain experience.

We consider ourselves to be an energetic, fast paced, forward thinking organisation that touches every part of New Zealand society. Were equally proud of our reputation as the place to turbo-charge an FMCG career.

If you are a sales or supply chain FMCG professional with a superb track record in your chosen eld, heres the perfect opportunity to refresh your career.

So your time starts now go directly to www.cokecareers.co.nz to learn more about who we are and what we need from you then lets talk.

2011 is shaping up to be a busy year for us not to mention our role as a Rugby World Cup 2011 official supplier.

Follow us on

news

10 FMCG april 2011

nIveA ceLebrAtes 100th bIrthDAy

unexpecteD specIAL At new worLD

Nivea creme has been sold

worldwide in the classic blue-white

container for almost 100 years.

Today Nivea stands in the centre

of an extensive product family

available in over 200 countries. It

includes all areas of skin and body

care, and in 2010 created net sales

of almost 4 billion for its producer,

Beiersdorf.

With the new motto NIVEA: 100

Years Skincare for Life, the worlds

largest skincare brand* launches a

worldwide campaign starting in May.

As part of the new campaign

Beiersdorf is starting the worlds

largest-ever global skin advisory

tour, at over 75,000 promotional

stands in retail stores. With an

anticipated 13 million-plus consumer

contacts, around 1.7 million

consultations, including individual

skin analyses, are expected.

To reach new target groups Nivea

will also launch its largest-ever

digital mobilisation campaign in

social media, with international

superstar Rihanna, expected to

generate over one billion page

views per week. Rihanna has a large

number of fans on social networks

such as Facebook, and her music

will be used in various different

campaign elements.

With a 1 billion-plus marketing

budget, the new campaign is a

significant investment in the brand.

Cosmetics company Beiersdorf

AG is based in Hamburg, Germany

and has over 20,000 employees

worldwide. l*Source: Euromonitor, skin and beauty products

excluding perfumes and hair colour by sales

volume, 2009.

Shoppers at New World Victoria Park in Auckland got

more than their weekly groceries when they did their

supermarket shopping in mid-March, with 20 stunning

models giving them unexpected fashion inspiration.

Gone were the runways, front-row seating, backstage

and media only invite list when Stolen Girlfriends Club,

in collaboration with Red Bull, presented their Untitled

Spring 2011 collection to a surprised audience down the

aisles at New World Victoria Park.

Creative director of the Stolen Girlfriends Club, Marc

Moore was looking for a location that would take

fashion out of its usual context when a trip to his local

supermarket gave him some inspiration. We noticed how

the supermarket served as a natural catwalk, so we got

thinking about how we could make this grand idea happen.

Owner-operator of New World Victoria Park, Jason Witehira

welcomed the opportunity to host the show.

We like to give our customers a refreshingly different shopping

experience through everything we do.

New World Victoria Park offers its customers a fantastic

shopping experience and superb service, as well as a full service

deli, traditional butchery, a wide range of delights baked fresh

each day in the bakery and an extensive wine selection.

Our store offers customers the choice and selection they have

come to expect from a New World along with great prices.

But just like our customers sometimes we like to be a little bit

different, our collaboration with Marc and Red Bull is just one

example of this, says Witehira. l

Rihanna.

Brilliant ranging, made easy

Breadth of Range ensures wide consumer choice

Freezer Presence packaging and branding that displays effectively in any freezer environment

Quality 100% New Zealand premium chicken meat delivering popular consumer appeal

Retail Support signifi cant and ongoing marketing support

Taste the success of the Ingham Red Bag range, driving strong and profi table growth in the frozen chicken category.

For more information about the Ingham Red Bag range call Inghams sales department on 0508 800 785.

PrintTV PR Promo

HTR

_ING_10165

HTR_ING_10165_FP.indd 1 4/03/11 12:44 PM

news

12 FMCG april 2011

tough cLeAn up for chrIstchurch countDown AnD supervALue storesCountdown New Brighton and SuperValue Woolston are now

open to customers in Christchurch East after the earthquake,

which struck the city on 22 February.

Countdowns chief operating officer Dave Chambers said the

team at Countdown New Brighton have worked tirelessly to

restore supermarket services to eastern Christchurch residents.

The damage to the store was extensive. Apart from broken

fittings and stock, the store suffered from liquefaction. We

had an old artesian bore blow through the floor in one of the

aisles. A hole had to be cut in the concrete floor and a bobcat

brought inside to dig until they found the source of the water

and capped the spring. Our team spent three days mopping up

silt and water, Chambers said.

Our team was determined to get Countdown New Brighton

open for the local community despite working in tough

conditions with no sewerage or water services and only

generator power. To get Countdown New Brighton cleaned up,

re-stocked and re-opened has required exceptional effort and

resolve from our team, he said.

We are grateful to our team members across all 15 stores and

three distribution centres in the Christchurch area, Chambers

added.

Three other stores have suffered significant damage.

We will not be opening stores until it is safe to do so and

we are working with engineers and construction experts on a

programme of work to restore services across these stores, he

said.

Our Countdown Colombo Street store suffered from a fire but

it is structurally sound and we are working hard to rectify the

fire damage with the store possibly re-opening in mid-April, he

added.

Chambers said that Countdowns supply chain is now back

in full operation with regular deliveries to stores across

Christchurch and the South Island.

Some products such as bread, water and sanitizer continue to

experience high demand but we are receiving additional stock

across all our stores in the Christchurch area, he said.

Chambers said Progressive Enterprises franchise operations

had also been affected by the earthquake and the team at

SuperValue Woolston put in a great effort to open its doors to

customers.

Information on store openings will continue to be provided

on the Countdown website at www.countdown.co.nz and at

www.facebook.com/countdown. l

nAkeD pAnDA hAs ArrIveD In nZ!Naked Panda, as seen on the cover of this issue, is a new

and innovative range of convenient snacks and meals

that taste wicked! They are the real deal wet noodles and

chicken offering consumers a real choice and bringing an

authentic taste into

the category.

With eight great tasting flavours and funky packaging everyone

will want the Naked Panda!

The pouch range is available in 200g microwaveable pouches,

perfect for a quick snack on the go, ideal to fill the gap

between meals. Available in four authentic flavours:

Chicken Teriyaki with noodles

Green Chicken Curry with noodles

Satay Chicken with noodles

Sweet Thai Chilli Chicken with noodles.

The box range is available in 350g microwaveable boxes perfect

for lunch or dinner. Available in four authentic flavours:

Chicken Laksa with noodles

Thai Chicken Curry with rice

Red Chicken Curry with rice

Honey Soy Chicken with noodles.

Naked Panda will be going crazy on the web so look out

for the panda at nakedpanda.com or facebook.com/

nakedpanda.

Go on you know you want to! l

april 2011 FMCG 13

Incredible response effortsKatherine Rich reflects on the Christchurch earthquake the most devastating and tragic natural disaster in modern New Zealand history.

As Kiwis, we have all been touched by the tragedy. Wherever we were around the country, or around the world, our first response was to do whatever we could to help those whose lives have been directly affected by the quake.

Within hours of the 6.3 magnitude shake on 22 February, many members of the Food and Grocery Council had convoys of trucks on the road carrying prod-ucts into Christchurch. Thousands of pallets of food, water, medicines and grocery supplies were donated in the criti-cal days immediately after the earthquake, as well as cash donations to the Red Cross and Salvation Army.

In the weeks since, donated products have continued to roll in for affected Christchurch residents, and the teams of rescue workers. Every single one of the Food and Grocery Councils 180 members has contributed to various appeals, provided goods for relief organisations, and worked hard to support our retail partners in getting its supermarket networks operational again. The Councils chair (George Adams, Coca-Cola Amatil) and vice-chair (Pierre van Heerden, Sanitarium) have been working tirelessly on the ground in Christchurch to help the recovery efforts, both within their own companies and for the city as a whole.

The speed of the response was mainly because our in-dustry understands the critical importance of a reliable food supply. While people can usually endure a lack of power or sewerage after a disaster, even a hint that the food supply is at risk can create widespread panic very quickly. The outstanding efforts and generosity after the earthquake from companies around the country con-firmed that, despite the incredible challenges created by the disaster, New Zealand still has a robust and reliable food network. Our industrys actions have made a real dif-ference to the relief efforts in Christchurch.

The list of goods donated by FGC members is stag-gering and grows every day. It includes large amounts of water, milk, coffee, tea, breakfast cereals, bread, baby products, infant formula, toilet tissue, personal care prod-ucts, sanitisers, home care and cleaning products, biscuits, snack bars, desserts, canned goods, poultry, noodles, ready meals, rice, batteries, soups, yoghurt and pet food. In addi-

tion, members have contributed cash to appeals, provided transportation, and donated staff time to assist with the clean-up and re-building.

While the initial focus was on basic items and assisting the emergency efforts, members have also donated prod-ucts such as chocolate and liquorice. Large amounts of Mars and Cadbury chocolates were delivered to workers inside the cordon. It was a rare event for people to be al-lowed through the cordon but they reported the treats made the heroic emergency workers smile, if only for a moment, in the most testing of circumstances.

As a relative newcomer to the FMCG industry, I have been incredibly proud to witness the relief efforts by all members. The Councils role has been to help co-ordinate those efforts and to liaise with government ministers and relief organisations. Our overall focus is on ensuring all needs are met getting products to where they are most needed, rather than inundating relief organisations with packages.

The situation on the streets of Christchurch remains tough, but from a grocery perspective there are steady im-provements every day. At the time of writing this some stores remain closed but, across the board, the grocery network is close to fully operational, and in a generally positive frame of mind. Many supermarkets are reporting strong customer demand and support. The re-opening of supermarkets is an important milestone in a communitys recovery process and is still the best way of ensuring a reli-able food supply. The grocery sector is as close to business as usual as can be expected in the circumstances.

Our thoughts remain with all those affected.

Katherine Rich, CEO,

NZ Food & Grocery Council.

Email: [email protected]

fgc

The situation on the streets of Christchurch remains tough, but from a grocery perspective there are steady improvements every day.

14 FMCG april 2011

At 12.51pm on February 22, like everyone in Christchurch our business was tossed upside down; not to the brutal and tragic extent of many others in the city but enough to dra-matically change the face of our op-erations and manufacturing at our soft drink plant in Woolston.

This is the story of our response, recovery and resumption of Coca-Cola Amatil (CCANZ) operations in Christchurch and most importantly our lessons learnt.

Our senior leadership team just hap-pened to be on site in Christchurch when the earthquake struck. Whilst daunting for them, the fact that both the managing director and head of supply chain were present proved for-tuitous as they gained first-hand in-sights into the scale and impact on our staff and facilities. This allowed prompt and expedient decision making in the immediate aftermath.

The facts facing us: our site at Woolston had structural damage; our manufacturing line was out of action amidst an almighty mess of thousands of cases of product.

What to do? In order of prior-ity make sure our people are okay, get structural engineers to assess the site, begin a clean-up and attempt to resume business operations only when it was deemed feasible after due con-

When it all came tumbling down

sideration to both the challenges facing our staff and our customers.

PeoPle firstTwo people working in our distribution centre suffered broken bones and crush injuries from falling boxes in the high bay racking area. They were immedi-ately assessed and transported to hospital and subsequently have recovered well.

All staff were sent home to be with their families and to take stock of the impact of the quake on their personal lives; their resumption of duties has been gradual, with their personal cir-cumstances considered foremost.

One lesson we learnt from the ear-lier earthquake on September 4 was to factor more time into our recovery plan for staff to recover fully. Given the magnitude of this event we were par-ticularly careful to employ a full reper-toire of employee support mechanisms, but most importantly not to rush people to return to work. We offered both general support to all staff but recognised that this event required a personalised case by case consideration for employees who were facing a raft of personal challenges. Within a few days we had an HR practitioner resident onsite to assist our managers to work through the multitude of staff requests and considerations.

We offered EAP trauma counsel-ling, allowed employees to cash in long

service leave or days in lieu and set up a facility for hardship grants. In addition, on a case by case basis, we are also assist-ing those who need a break away from Christchurch to temporarily relocate. Weve also redeployed manufactur-ing staff to other areas of the business whilst essential repairs to our bottling line were completed.

Our Christchurch staff have been simply magnificent. Theyve worked in less than ideal circumstances, sometimes from homes that were without water or power but driven by a strong desire to help CCANZ get back to business. We recognise their resilience and tre-mendous strength of character, but we are also mindful that this time theres an accumulated effect from both last years quake and from the sheer scale of this event. In the clean up post September 4 we observed the adrenaline response kick in followed by a subsequent slump physically, mentally and emotionally and thats why this time we made sure there was less pressure on local staff and more time factored in for recovery.

Communications business wide are vital during times of crisis and we have ensured daily updates to both Christchurch staff and the wider com-pany to fully communicate both the assessment, clean-up and return to business plans. They say knowledge is power and in such times of uncer-tainty firm guidance communicated

A case study from Coca-Cola Amatil.

april 2011 FMCG 15

feature

When it all came tumbling down

effectively cannot be underestimated in helping a team recover.

We received a call from Civil Defence on February 23 seeking clean water supplies. We dug out what we could recover from our distribution centre and offered it to them. On their own initiative the Supply Chain team in Auckland immediately despatched 10 B trains with bottled water. We also flew 10 pallets via the airforce to Christchurch Hospital. To this day we continue to work with Civil Defence to assist them with their water and hy-dration needs for search and rescue staff, emergency services, welfare centres and hospitals. To date we have donated bottled water to the value of $500,000, plus staff nationwide have contrib-uted individually through a company matched donation to the Red Cross Earthquake Appeal Fund.

oPerationsOur two manufacturing plants in Christchurch, producing juice and carbonated soft drinks represent a little over 15% of our business in New Zealand. We employ 142 staff across two sites; Keri Juice in Hornby and our soft drink and distribution centre in Woolston, which has borne the brunt of this quake with both structural damage and significant stock loss (400,000 cases). We esti-mate our total insured loss to be in

excess of $10 million.Changes to our supply chain were

immediately enacted as we moved to service our South Island customers from our Auckland and Palmerston North distribution centres. With ad-mirable logistics planning we were able to meet these needs albeit with, in some cases, a delay to scheduled deliveries of up to 72 hours.

Damaged roads in the region com-bined with many customers proving difficult to contact led us to create and deploy an ingenious solution for getting product to those in need. We called it man (or woman) in the van and its a return to the traditional ap-proach of a personal call to customers by a sales rep with a small van loaded with product. Its proved amazingly successful and its one of the ways weve adapted our usual sales model to service actual needs.

Given that many of our custom-ers are within the Red Zone of the CBD we recognised the immediate need to show compassion and un-derstanding with credit terms and scheduled bill deliveries. We have offered delayed payment terms and will work with individual business owners to help them to resume trad-ing when and if thats possible.

In conclusion, managing director George Adams says: Its not often you can write a disaster recovery plan

As this article goes to print our facility at Woolston is back up and running, an incredible result from a truly dedicated team just look at its status on the afternoon of February 22.

(which we revised after the September event) and then get to actually test it out five months later. In terms of the impact on our business and the coun-try in general, I felt the green shoots of a recovery were appearing how-ever, sadly, this event will have stalled it again. Consequently we are anticipat-ing a very tough 12 months ahead for our business.

Removing the load and expecta-tion from local staff immediately has resulted in us being at a more ad-vanced stage of recovery on a day-by-day basis compared to last year. Despite the increased damage sus-tained were in better shape because we immediately and comprehen-sively supported our Christchurch operations from our other manufac-turing and distribution centres.

We have big plans for the future of our manufacturing operations in Christchurch, but thats another story.

16 FMCG april 2011

Supporting Canterbury

The thoughts and hearts of all NARGON members and staff are with the people of Christchurch, particularly those in the retail grocery industry who have been affected by the 22 February earthquake.With the rest of the nation, we are deeply sad-

dened and shocked by the tragic loss of life and injuries.We have also witnessed the widespread damage to prop-

erty including stores, stock and houses. To all those affect-ed, as the Grocery Retailers Association, we look to stand beside you during these times of loss and sadness. We share your determination to rebuild Christchurch and members are already supporting a number of significant relief efforts.

It has been inspirational to see the rapid and often heroic response from the emergency services, local and national Government, state agencies, charities and indi-viduals looking to help. The amount of humanitarian aid delivered after the quakes has been incredible and helped avert many more tragedies.

While a number of stores remained closed or operat-ing at very limited capacity, large numbers have re-opened and are serving their communities admirably. The opening of local supermarkets and grocery stores is seen as a major step on the road to recovery.

The main website for emergency information remains the Ministry of Civil Defence (www.civil defence.govt.nz/) while the Canterbury Employers Chamber of Commerce has created a business-focused site to help recovery efforts (www.recovercanterbury.co.nz). There is also a disaster recovery toolkit on the Governments Business webpage (www.business.govt.nz/managing/implementing-health-and-safety/recovery-toolkit-for-christchurch-businesses).

On the Government side, the Ministry of Social Development (www.msd.govt.nz) has announced the Christchurch Earthquake Support Package for employ-ers and employees in Canterbury affected by the devas-tating earthquake. The Christchurch Earthquake Support Package is made up of two components.

The first is the Earthquake Support Subsidy. This is

a subsidy for employers who believe they are going to remain in business and want to keep their staff while working to re-open.

Earthquake Job Loss Cover is a direct payment for em-ployees for a period of six weeks. This applies to those staff who are unable to contact their employer or where the business has closed permanently.

The Department of Labour (www.dol.govt.nz or 0800 20 90 20) has produced information to help busi-nesses make safe, sensible and practical decisions in this difficult time. The topics covered include health and safety, wages, leave, flexible work and terminating employment relations. Be sure to contact them if you are affected.

For those outside Canterbury, there are a number of ways to help. The major appeals are the official Government appeal (christchurchearthquakeappeal.govt.nz/) and the Red Cross appeal (www.redcross.org.nz/donate). The Ministry of Consumer Affairs has warned that a few unscrupulous people are running scams looking to take advantage of the recent tragedy so people should check carefully before giving.

Organisations and businesses all over the country are also raising money at the workplace, running collections, donating goods such as food and bedding, providing ac-commodation for families or offering jobs to those left out of work in Christchurch. The Ministry of Social Development is co-coordinating offers of earthquake as-sistance including offers of accommodation outside of Christchurch ([email protected]).

NARGON commends the actions of many members who have already dug deep to give generously. However, the road to recovery will be long and hard.

Politicians across the spectrum have united to work for the people of Canterbury. A number of MPs have been per-sonally affected, while others have travelled long distances to work on the ground. Most have put aside party politics. The Prime Minister looked to sum up the mood of the nation:

We feel your pain, as only a small nation can, for none of us feel removed from this event All New Zealanders have a piece of our heart in Christchurch. All of our lives are touched by this event. We feel connected to your suffering. Your tragedy is our tragedy. Today I want Christchurch to hear this message: You will get through this. This proud country is right behind you and we are backing you with all our might. The world is with us.

Christchurch, today is the day your great comeback begins.

Kia Kaha.

The road to recovery will be long and hard, says Trina Snow.

nargon

Trina Snow,

executive director,

NARGON.

The hottest news about your industry, delivered fresh to your inbox twice a week. Up to date Relevant Topical

Stay in the loop by subscribing to our free twice-weekly email newsletter at www.foodnews.co.nz/subscribe or go to www.fmcg.co.nz for features, news, category checks and blogs at your fi ngertips 24/7/365.

Online

Contact Ashley Kramer at [email protected] or Peter Corcoran at [email protected] to fi nd out about

our print and online packages. To discuss editorial submissions contact Pauline Herbst at [email protected].

@Whats online www.fmcg.co.nzFMCG has a few web exclusive features to get you clicking.

NeW products BuildiNg trust as a team

Its not difficult to deliver on your promises,

says award-winning speaker, author and

mentor Hannah Samuels. Find her expert

advice online at www.fmcg.co.nz

Visit www.fmcg.co.nz to see this years NZ

Champions of Cheese Awards winners and to

find out which bright young talent was named

Cheesemaker Of The Year.

From 100% NZ Farmed Kiwi Bacon to

Ceres Organics Raw Food Bars take

a sneak peek at some of the latest

product launches online.

PLUSAn extensive archive of

previous issues of FMCG

you may have missed as

well as news, category

reports and more.

cheesemaker of the Year 2011

NeW ZealaNds most teNder, tastY lamBWhich butchery was named Glammies retail winner 2011? The experts from

Beef + Lamb New Zealand reveal the details on www.fmcg.co.nz

FRESH & LOCALSpecialist resource writer John Clarke highlights developments in produce, fish and meat supply.

FISHSupply of inshore species will slow

down as we move into late autumn.

The main season for tarakihi is slowing

and finishes in June but there will

always be some around.

Gurnard is always available; a lovely

fish you cant afford to ignore.

Trevally and kahawai are still in good

nick at this time of year and are

greatly underrated inexpensive fish

species.

There has been a lot of very good

flounder on the market and it is a

wonder we do not make a better use

of this fish. There will be lots around

in the short term, but the fishing will

be quietening down as we get closer

to winter.

Supplies of blue cod (which is not

actually a cod) will be increasing as

the albacore fishing season starts to

run down and these fishermen head

south to the cod fishery. So even

the Auckland market may see some,

if you guys down south relax your

exclusive claim to it.

Tuna quality is still good and the price

is right.

MEATAll the hoofed animals are in fine

condition, but the schedules have

been rising.

New Zealand meat prices are tied to

the export schedule and the trend is

up, I am afraid.

There is a world wide shortage of

protein and prices are at all-time

highs. And domestically, as if that is

not bad enough for our trade, the

Kiwi dollar has also dropped pushing

local trade prices even higher. There

is already some resistance from

consumers to these higher prices, but

we and they will have to learn to live

in the real world. We have to teach

our customers to change their habits

and appreciate smaller cuts and value

our great quality farm-raised red meat

for what it is the best in the world.

The next month should see some

stabilisation in supply but do not

expect much of a price drop.

Come early spring (our low season),

there is going to be an even greater

shortage of supply and logically a

price hike, not to mention an increase

in demand due to the thousands

of extra visitors for the RWC. So be

loyal to your supplier, dont do the

dirty on him by chasing every short-

term cheap deal out there, and your

supplier will be loyal to you when the

crunch comes this spring.

BeefSchedules rose again in March, and

now all grades of beef are at yearly

highs. Local trade schedule prices are

up at between $4.30-$4.60/kg, that

is 85c-90c/kg ahead of last year, and

the trend is rising.

LambNationally the lamb kill is reported

to be 17% down on last year and

February saw early highs in lamb

schedules and March has seen further

increases. Lamb is at $6.14/kg at time

of writing, nearly two dollars more

per kilo than at the end of February

last year; get used to it!

MuttonAnd if you think beef and lamb are

bad, try buying mutton

Farmed VenisonVenison remains at the top of the

price tree. It may be that we have to

get used to higher prices for meat

competition for land use means that

farmers can no longer produce meat

for the same low prices they have

been receiving.

Processed Pork Products Much of the processed pork we see,

such as salami, sausages, bacon and

ham is made from imported raw carcass

meat. The label then says product of

New Zealand and fails to mention the

PRIMEPears, apples, feijoas and Kiwi kiwifruit. Beef and

fat lamb and venison. Blue cod, snapper and tuna;

squids and crabs are good also. Red cabbage,

Brussels sprouts and kumara. And this is the best

time for mutton birds and Bluff oysters.

FINISHINGOur apricots, nectarines and peaches. New Zealand

strawberries, beans and sweetcorn.

april 2011 FMCG 19

fact that the pig was actually farmed

overseas, and that the producers did

not have to meet New Zealands very

good regulations when it comes to

matters like feed and hormones.

That is another good reason why we

need decent country of origin labelling

in this country. So if you want New

Zealand processed pork products look

for the 100% NZ Pork label.

FRUITAs stone fruit volumes fall and prices

firm this month so pip fruit volumes

will increase.

All the New Zealand seasonal apples

are arriving in numbers so there are

no excuses for the imported rubbish.

We now have the Delicious varieties

and the Braeburns in, followed closely

by Fuji and Pacific Rose, then good

old Granny Smith and towards May

Pink Lady apples.

This month is also the month for

pears, with good volumes coming

in and good value, but the glut of

avocados is over I am afraid it was

good while it lasted though.

We are seeing a lot of the Kent and

Keitt varieties of mango (the green ones)

from Mexico and some organic ones

from Peru at present and very good

quality they are too. This variety seems

to keep better and bruises less easily.

All varieties of New Zealand grown

melon are around to some extent

but its the rock and honeydew that

are best now, although not for much

longer. Then there will be imported

varieties available. This is passionfruit

season, but it will be all over in a

couple of months.

VEGETABLESMost of our New Zealand grown

summer and autumn vegetables will

be shortening up.

Pumpkins will be at their best this

month and leeks and

celery will also be in top

condition.

By the end of April courgette,

aubergine and tomato volumes

will have fallen off, prices will be rising

and we will see more of the imported

product from now on. Supplies of

New Zealand beans and sweetcorn

will be dropping off.

All varieties of new season kumara

will be in the market in good volumes.

We are also now well supplied with

Brussels sprouts from the central

North.

Title: Mrs, Ms, Mr Name:

Company name:

Address: Postcode:

Phone: Email:

I am paying by Cheque (enclosed). Please make cheque payable to Mediaweb Limited Visa MastercardCard No:

From time to time we run subscriber-only offers related to other magazine titles we publish. If you do not wish to receive these, please tick.

If you do not wish to receive offers from third parties, please tick.

Tick here if you require a tax invoice or receipt

Name as it appears on the card: Expiry Date:

Signature: Type of business:

YES!

SUBSCRIBE ONLINEMail: Mediaweb, PO Box 5544, Wellesley Street, Auckland, 1141, New Zealand. Email: [email protected]

www.fmcg.co.nz/subscribe (including international prices)

All prices include GSTGST No: 102-417-023

Id like to order an annual subscription to FMCG magazine (11 issues) for just $90.00 incl GST including the free twice-weekly foodnews email newsletter.

SUBSCRIBE THIS MONTH TO BE IN THE DRAW TO WIN A CASE OF 2009 WAIPARA HILLS WAIPARA PINOT NOIR. (WORTH $250)! &

Used on a white background

Used on a black background

You must be 18 years or over to be eligible for this prize. (Please tick)

20 FMCG april 2011

Some consumers still seem to fear

the deli counter all those glossy

olives, wrinkled dried tomatoes, and

chargrilled vegetables peeping at you

from a bowl. Seen only through

a glass cabinet, the unknown is

often avoided.

You can recognise these shoppers

by the way they walk slowly past,

squinting at the bowls, wondering

what some of the products are.

Deli cabinets should be an inviting

window, where those perhaps

unusual products are a gateway

to experience some new and

different tastes. And the best thing

is, shoppers dont need to get half

a kilo or a jar from the shelf to do

this, they can grab a spoonful to try

in the comfort of their own home.

Delis allow us to help customers to

perhaps overcome their fear to taste

the unknown, and to purchase as

little or as much as they wish.

In Italy, and in many fresh food

markets, if you are hovering in front

of the cabinet, and unsure if those

tomatoes are really supposed to

look that wrinkled, or wondering

what that green berry with a stem

is (that looks a bit like a tadpole), its

refreshing to see that shoppers will

be put at ease, and be engaged by

the person behind the counter. To

have your hesitation lessened, to be

0 8 0 0 D E L M A I N E

FEARFACTOR

How to make the most of your deli counter? Delmaine brand manager Kathryn Awde explains.

encouraged to be brave and coaxed

into trying a piece or two of the

delicacies.

I love talking about food and to be

honest Im not sure I know anyone

who doesnt! So next time you

see someone in front of your deli

cabinet and they look a little unsure,

dont be shy to offer some help,

or even ask if they would like to

try something to taste. They will

appreciate the interest and you

can have an opportunity to talk to

someone about your knowledge and

potentially be able to help them.

One of your most valuable assets

you have is this knowledge, and one

of the best things you can do for

your customers is to share it. Not

only do you have the incentive of

having more interaction with your

customers on their weekly shop, you

will also have them walking away with

something new and some exciting

ideas.

april 2011 FMCG 21

[email protected] www.delmaine.com

The deli is the ideal area of the

supermarket for your customers

to visit if they are entertaining,

particularly if they are making an

antipasto platter. This traditional

Italian dish is ideally suited to serve

over deli products. Because of

the flexibility of the ingredients,

and ability to make each antipasto

platter individual, it also offers you

an ideal opportunity to engage in

some extended food chat with

your customers. You can share your

experiences and ideal combinations

and encourage them to be creative

with their efforts.

As a starting point here is some

information on this colourful dish

and some ideas to get you going.

Antipasto (plural antipasti),

means before the meal and is

the traditional first course of a

formal Italian meal. Traditional

antipasto includes cured meats,

olives, roasted garlic, peppers,

mushrooms, anchovies, artichoke

hearts and various cheeses.

However, the best thing about

antipasto is that there are no rules

(which means you cant go wrong).

Antipasto can be simple ingredients,

from a handful of olives, raw

vegetables (carrots, celery, beans

or capsicum) pickled or marinated,

served with some fresh or toasted

sliced bread. Add some sliced up

sausage, or ham and tomatoes, either

fresh or sundried. The choice is

yours.

For some more exotic twists

throw in some melon and

figs, or other dried fruit. The

only thing to remember with

an antipasto is that there needs

to be a selection, and the creative

combination of the antipasto is

important. The composition should

appeal and indeed tempt both the

eye and the palate. Placing all these

colours and different textures on a

platter is instantly appealing. White

crumbly feta, next to glossy black

or green olives, and shiny ruby red

sundried tomatoes right there you

have the colours of the Italian flag!

With a wide selection of antipasto

on the platter you are also catering

more easily to everyones taste buds.

Its so easy to do and who doesnt

like easy when it comes to

entertaining?

22 FMCG april 2011

category check

Winter Warmers

MAGGI is a leading player in Total Soups with a strong presence in both Instant and Packet Soup. Nestl New Zealand category manager Richard Brown explains: Current Maggi contri-bution is $15.3 million sales to the soups category, which was made up by $10.3m Packet Soup and $5m Instant Soup.*

It is a little known fact that Maggi Onion Packet Soup remains the #1 sku in the Soups category (3.7m

units annually, equivalent to $4.3m of scanned sales*). This product continues to go from strength to strength on the back of the highly successful partnership with Nestl Reduced Cream a key ingredient for the original Kiwi dip. For the latest 12 months Maggi Onion Soup has grown +3.5%* (value) / +4.0%* (unit) and shows no signs of slowing down, says Brown.

He adds: As we approach winter, consumers will look to warm themselves up with soup, in

As the temperatures begin to plummet around the country, consumers start looking for soups again. FMCG examines some of the best-sellers and innovations in this highly competitive category.

22 FMCG april 2011

april 2011 FMCG 23

THE BREAKDOWNCurrent MAT to 28 Feb 2011

Total Soup: $61.477m

Val % Chg YA -4.9

Total Canned Soup: $26.202m

Val % Chg YA -8.3

Total Packet Soup: $11.259m

Val % Chg YA -0.8

Total Instant Soup: $17.847m

Val % Chg YA -2.5

Total Cereal Soup: $4.031m

Val % Chg YA -6.5

Total Soup Mix & Pulses $2.137m

Val % Chg YA 2.7

* ACNielsen New Zealand ScanTrack (Databank)

soups

particular Instant Soup which is the #2 segment (behind Canned) generating $17.8m of sales.*

A growing trend is the Instant Soup premium 2-serve segment, which is now 34% of all Instant Soup sold* and is gaining more space on shelf on the back of new offerings. In line with this trend, Nestl has introduced in 2011 a number of new exciting Maggi premium 2-serve offerings to the market, says Brown.

It has launched a delicious new crouton range including Cream of Chicken w/ Croutons, Pumpkin w/ Croutons, Cream of Mushroom w/ Croutons, and Pepper Steak & Mushroom w/ Croutons.

Brown comments: In order to capitalise on the increasing demand for the more adventurous flavours offered within the premium 2-serve segment, Maggi has also launched an authentic Asian Tom Yum and Asian Chicken & Corn. And given the Asian inspired sub-segment is already a popular choice, retailers should expect this growth to continue (+6.1% unit*).

Further enhancing nutrition, Maggi has also launched a new Wholegrain Instant Soup with the ever popular flavour of tomato.

Brown says: The majority of us like to consume soup at lunchtime**

(46%) and we also like to consume it with toast and/or bread** (47%). As a result, the Maggi team will be out in force providing samples of some of these new products during winter at selected outlets. Watch out for them and get to taste the delicious new Maggi range of soups.Sources: * Nielsen ScanTrack Total Supermarket MAT

Data to 27 February 2011.

** Sweeney Research February 2010.

ReTuRn of an old favouRITeDelmaine Fine Foods produces a select range of soups made up of three classic varieties Pumpkin, Chicken Chowder and Seafood Chowder; two added-value pasta soups Chicken Noodle and Minestrone; and, returning this winter, the unique Kumara, Ginger and Lemongrass. All Delmaine soups are packed in 600g standup pouches.

Delmaine Fine Foods group product manager Micheal Bennett says: Delmaine is a key player in the fresh soup market and is dedicated to providing the best quality and range to meet consumer demand. This winter that consumer demand has seen the return of an old favourite in Kumara, Ginger and Lemongrass. A light, but filling soup, it blends the best in fresh NZ produce with a touch of the East. The sweetness of

the kumara is balanced by the zest of lemongrass and warm spice of the ginger.

Delmaine, as a responsible supplier, and being aware of space constraints at shelf level, has deleted the Delmaine Roasted Capsicum and Tortellini Soup to make room for the return of Kumara, Ginger and Lemongrass.

The fresh soup category is highly competitive and this winter will almost certainly see a continuation of price promotionally-driven activity.

Bennett comments: Last year did see some lift in average EDP pricing and this will hopefully continue this winter. Higher retails could possibly reflect in higher list and cost pricing, which could in turn create potential for greater new product development. The category is likely to be dominated again this year by Pumpkin, Seafood and Chicken variants.

24 FMCG april 2011

dRIvIng gRowThKerry Allen, marketing manager Watties Soup, told FMCG: Watties Soup is worth $19.6m in annual sales and is the market leader within the Wet Ambient Soup sector with 77% share, achieving record shares last soup season*. Within the Ready to Serve soup sector Watties has the Very Special, Big N Hearty, and Watties Soup for One sub brands, in addition to Watties condensed soup. Each of these is positioned to appeal to different consumer needs, from the home-style favourites that are just that little bit more special, to hearty satisfying recipes and our versatile condensed soup offerings. Watties holds market leadership in both the Ready to Serve and Condensed soup sectors, and within the Ready to Serve sector the leading two sub brands, Watties Very Special worth $10m and Big N Hearty $4.2m*.

Allen adds: As the market leader, Watties objective this winter is to drive growth back into the category and get soup top-of-mind with consumers again. Our goal is to encourage existing consumers to consume soup more often, improve shopability and space on core selling lines, optimise ranges, and drive growth through NPD and marketing support.

Allen says: In February 2011 we launched four delicious new soup recipes, simple home-style favourites: Watties Very Special Tomato & Basil 535g; Watties Very Special Country

Vegetable 535g; Big N Hearty Beef Hotpot 535g; and Big N Hearty Vegetable, Beef & Pasta 430g. Available now within Progressive, with other accounts expected to follow in the coming months.

Range refreshment is vital in a category where consumers seek variety and news. Watties Very Special Creamy Chicken 535g launched last season is now the 12th performing sku* in the Ready to Serve soup sector, a clear reflection of our NPD success, says Allen.*ACNielsen MAT Total Supermarkets to 30 Jan 2011

fIT foR a KIngKing Traditional Soup Mix has a long history of making great soup for New Zealanders.

Our Traditional range of soup mix includes: Vegetable; Hearty Vegetable; Country Chicken; Minestrone; Pea & Ham; Corn and Bacon; and Alphabet Soup, says Hansells Food Group senior brand manager Susan Harvey.

Each packet of King Traditional Soup Mix contains everything consumers need to create the perfect homemade soups, or use a base to create their own masterpiece. King Traditional soup mixes are low in fat and make for an economical meal for the family.

King Soup Singles allow you to enjoy real soup, real quick, explains Harvey.

Each pack contains real concentrated soup ingredients so all you need to do is add boiling water and drink from the cup. King Soup Singles are perfect for on-the-go. With no preservatives, or MSG, the soups have natural colours and flavours. They are also low in fat the ideal lunchtime or afternoon snack.

Harvey says the King Soup Singles were launched in three great flavours, in April 2010, which have been very well received by the trade and consumers: Chicken and Corn Tom Yum Tomato Minestrone.

category check

Warm upyour salesand lunchtimesthis winter withMAGGI Soupfor a Cup!

Happiness made simple

Try the New premiumMAGGI 2 serve offering today -Theres something for everyone!

NEWNEW

26 FMCG april 2011

Sourced from the identifiable farming regions around New Zealand the Naked Locals range includes four delicious flavours: Pukekohe Potato and Leek; Ohakune Carrot and Coriander; Hawkes Bay Organic Pumpkin; and a creamy Asparagus and Spinach soup from the Bay of Plenty.

Naked Locals was the key driver of the retail soup category, and already represents over 50% of our soup portfolio, says LHF marketing coordinator Gal Pyzhanov.

She adds: We will continue to extend our Locals offering with delicious gourmet quality wholesome soups including a Canterbury Mushroom Soup with Mascarpone and Thyme, Kaipara Kumara Soup with caramelized onion and sour cream, and a scrumptious Marlborough Sweetcorn & Basil Chowder.

Consumers have shown a distinct preference for fresh presentation of soups on the shelf. As a consequence the pouched products from Naked have enjoyed significant growth. Flavours tend to remain relatively traditional although the addition of interesting herbs and spices, along with underlying notes of cheeses and creams are making for products that do have a cuisine quality to them, adds Pyzhanov.

New Zealanders are becoming increasingly conscious of how their behaviour impacts the environment. It makes perfect sense to source and eat foods grown locally.

New Zealanders have been very supportive of locally grown foods where ingredients are recognised to be from well defined regions, comments Pyzhanov.

Naked Locals will be supported this winter with TVCs that identify the source of the new products. In-store product samplings will also take place nationally to introduce the new Locals range.

TaSTy PoTThe Tasty Pot Company won the overall Massey University Supreme Award at the New Zealand 2010 Food Awards. Chosen ahead of more than 90 overall entries, it was also named winner of the Zespri Award for Innovation in Food Products and winner of the Mitech Convenience and Meal Solutions Award.

Our team at Tasty Pot have a hunger for good, honest food, says company founder Natalie Vivian.

Weve been watching the soup category in New Zealand for a while now and we started tinkering away in our kitchen, to see if we could put our interpretation on what makes a good soup. Were pretty proud of what weve come up with.

The Tasty Pot soup range includes: Free Range Chicken & Leek Soup with potato, lemon & fresh tarragon. Velvety Beetroot Soup with dill & a touch of crme fraiche. Chorizo & Chestnut Soup with chickpeas, tomatoes & fresh thyme. Creamy Thai Pumpkin Soup with lemongrass, ginger & coconut cream.

category check

King Vegetable soup is the number two selling sku in the total soup category and is a staple in many Kiwi homes, she adds.

Harvey says King Soup Singles will be launching some new flavours this year, including Leek and Potato, Chicken Noodle and Wonton.

naKed SouPThe Naked brand has been available in the soup category with a range of organic and natural products over a number of years. Last winter it offered a range of locally-sourced ingredient soups under the banner Naked Locals.

april 2011 FMCG 27

Vivian explains: Each pot contains three to four portions of vegetables towards the recommended 5+ per day, is low in fat, and contains no colourings, additives or preservatives. Made from the finest local ingredients we could find, its enough to share with another... if you really love them.

Tasty Pot soups will be available from April 11 in most major New World supermarkets and food stores nationwide, with a recommended retail price of $6.99 for a 585g pot.

CaRbonZeRo offeRIngSPitango is proudly organic and CarboNZero accredited. Most products in the range are free-from in some way, be it gluten free, dairy free, vegetarian or all of the above.

We do not use preservatives or artificial ingredients and use GE free ingredients, explains product development & innovation manager Annabel Stewart.

Where possible, organic meat is used and when organic is not available it must be free range, she adds.

At the beginning of March 2011 a new range of soups was launched, including Pitango Pea & Ham Soup; Pitango Organic Sweet Potato Soup with Coconut & Ginger; and Pitango Organic Chicken Noodle Soup.

These new soups are starting to gain wide distribution, having been received well from the trade in all accounts with good ranging support, says Stewart.

Consumers main drivers are taste, health and free-from. First and foremost if its not tasty they will not buy the product, she says.

Sun valley SouP MIxSun Valley Foods currently offers a comprehensive range of dried soup ingredients and beans to the New Zealand supermarket trade, says sales

and marketing director David Frost.Over the past few years we have

made a concerted effort to supply only locally grown soup ingredients, which are sourced from growers located from around the mid-Canterbury region. We then blend the barley, peas and lentils at our Christchurch factory to produce our popular Sun Valley soup mix.

This season we will also be supplying New Zealand red and brown lentils from our contract growers for the first time. All our beans and pulses are currently sourced from established packers in both Australia and North America, explains Frost.

Our products are extremely shelf stable which makes them ideal ingredients to have in the pantry as a healthy addition of protein and fibre to many recipes at an economical price, says Frost.

Sun Valley Foods is 100% New Zealand owned and operated and is based in Auckland and Christchurch.

TuRKISh KITChenLuciell McIlroy, managing director Brelita Foods, told FMCG: Our product range in the supermarket chilled section is under the Turkish Kitchen brand. In the past 12 months our company has spent time researching trends of consumer needs in both flavours and their quick and easy needs for packaging options. The soup category is by nature a health-driven category in terms of product offering and is becoming extremely competitive. Our company is launching a range of soups that will meet the customers expectations in all three major decision-making areas such as, product quality and flavours, user friendly (quick & easy), plus packaging and pricing that reflects value for money.

soups

28 FMCG april 2011

Free to range?

Animal welfare is the focus of an ongoing, heated debate in New Zealand. FMCG talked to some of the stakeholders in the industry.

Just a few years ago, you would have had difficulty finding free-range products in supermarkets. Today however, they are in high demand with consumers who are increas-ingly concerned about animal welfare issues.

But what does animal welfare mean, exactly?

The New Zealand Veterinary Association defines it as follows.

Animal welfare is the state in which an animal is in reasonable harmony with its environment, has adequate fulfilment of physical, health and behavioural needs and is not subjected to unnecessary or unreasonable pain or distress.

New Zealand veterinarians also acknowledge the complexity of animal welfare as a public policy issue, influenced as it is by scientific, cultural, ethical, conservational, economic and political factors.

Keeping standards highMany consumers want to know that their food is produced in an ethically acceptable way and not behind closed doors, says Mike Schellkes, manag-ing director Eco Egg Co. Among the companys offerings in supermar-kets are Bio Eggs (free-range organic certified), Eco Eggs (cottage type free range) and AWF (Animal Welfare Food free range).

All our companys products are produced in an animal welfare friendly way, explains Schellkes.

New Zealand could have the highest free-range egg production standards in the world, which could lead to tremendous export

opportunities. The importance is to keep the current standards high and not to dilute them. New Zealands climate and the availability of land makes it an ideal production base for world-class free-range egg products.

Eco Egg Co was founded in 1993 by Schellkes after completing post-graduate studies in the area of environmental agriculture. He had a vision of using environmentally friendly farming methods with high animal welfare standards. He soon established a network of individually contracted family owned and run egg farms, forming the production base of this cottage type industry.

The company now markets its unique product lines of alternatively produced eggs through most retail outlets across New Zealand and has been well positioned for more than 18 years.

Eco Egg Co is market leader in the retail market of free range and organic eggs in New Zealand with established export markets in Asia, says Schellkes.

a big blue ticK for henergyAs the countrys largest cage-free barn egg producer, Henergy is only too mindful of how important animal welfare issues are to a successful grow-ing brand.

With barn farming, hens are kept in spacious purpose-built barns, free to wander around and lay their eggs in privacy and comfort while being 100% protected against disease and predators.

It is the least common egg farming method in New Zealand and, according to Henergy ceo Darren

april 2011 FMCG 29

feature

Perry, consumers dont know much about it.

We spend a lot of our marketing budget educating consumers on barn egg farming and actively supporting cage-free farming methods. Of course, we genuinely believe that barn farming is the best cage-free environment in which to keep hens and produce the highest quality eggs, says Perry.

Henergy is one of only a handful of egg producers in the country to be SPCA approved and awarded its much-coveted tick a third party, independent guarantee that Henergy eggs come from a highly ethical and cruelty-free egg farm.

By joining the SPCA Blue Tick scheme, we made a stand against unethical farming methods, promoting a better life for New Zealands egg laying hens, says Perry.

Most importantly, by partnering with a like-minded organisation and one of the foremost organisations for animal welfare issues, we can help eradicate traditional battery cages in New Zealand.

Henergy believes that through ongoing education and promotion of schemes such as the SPCA Blue Tick, New Zealand will hopefully one day follow the example of Europe and California and ban traditional battery-cage farming once and for all.

Unfortunately, there is still some work to be done as battery cages remain the mainstream egg farming production method in this country to date, says Perry.

looKing at colony systemsMichael Guthrie, managing director Mainland Poultry, offers another point of view.

Mainland Poultry supports the National Animal Welfare Advisory Committee (NAWAC) proposal to phase out current layer hen cages over a reasonable period of time. Colony systems comply with welfare laws allowing hens to exhibit a range of natural priority behaviours. However, this move will involve enormous cost

for egg farmers estimated by MAF and independents at between $45-$150 million (depending on the transition time).

Mainland has supported NAWAC on this proposal through its significant investment in a commercial colony unit. This unit has been part of a joint EPF and MAF Sustainable Farming Fund project since 2007 looking at the feasibility for these systems for the New Zealand egg market. Findings have been positive and included input from Bristol University, which is renown in hen welfare research, says Guthrie.

Mainland very much believes in a holistic approach to egg production. Hen welfare needs to be balanced with human health and welfare to ensure a long-term sustainable supply of good quality affordable protein. All egg production systems have compromises, including free range and barn systems. Colony systems are proven to offer acceptable health and welfare needs for the hens, yet still allow eggs to be produced that make them available to ALL consumers, says Guthrie.

freedom farmsWe would like New Zealand to become the world leader in welfare friendly farming, says Gregor Fyfe, co-founder of Freedom Farms.

Freedom Farms was started because we were concerned that the animal welfare issues that consumers had were not being addressed. Consumers simply could not easily vote with their wallets and buy products from brands that did not compromise on animal welfare issues.

The issues around animal welfare are the same worldwide. The main concern consumers have is that when we farm animals we need to ensure that the animals can, as a minimum, always display their natural behaviour. Sadly, animals confined in cages and indoors in barren concrete pens and sheds cannot. Nor can animals that are confined in large numbers in very small spaces.

We have focused first on the pork market. This industry worldwide is extremely intensive. We know consumers are prepared to pay more for pork and pork products if they can be sure that the animals have been farmed without cages, crates and pens. We supply nationwide fresh pork and smallgoods that come from NZ farms that are independently audited by the SPCA and conform to the SPCAs animal welfare code.

We only sell products that come from farms that are third party certified (SPCA) and meet strict farming code and ethical standards.

We are planning to release products in all categories where farmed animals are involved. We believe consumers concerns are growing and they are looking for products they can trust on animal welfare, Fyfe says.

We dont see the issue of raising the welfare bar as the sole responsibility of farmers. It is over to consumers to use their purchasing power to send a signal to producers that they will pay more for ethically farmed goods. To achieve this, retailers simply need to offer consumers the choice on the shelves.

30 FMCG april 2011

farm-raised deer do what deer do bestIf New Zealand consumers are wor-ried about factory farming they can be relieved in the knowledge that New Zealand venison is produced on free-range farms across the country.

Innes Moffat, venison marketing services manager Deer Industry New Zealand, explains: Cervena is your guarantee that deer grazed on grass all year round, were never subjected to intensive feedlotting and have never been treated with growth promoting antibiotics or hormones.

New Zealand farmers probably invented free-range farming; to them this isnt a response to consumer trends, it is just the common sense way of doing things in this country. The rain falls, the grass grows they know deer do best when left alone and allowed to get on with what deer do best, eating and growing, says Moffat.

But deer in New Zealand are domesticated, they are used to being handled in yards, and the interaction with people doesnt stress them too much. Everyone knows stress causes tough meat. Farm-raised venison is very, very tender.

Deer farmers and handlers have a responsibility to provide good care for the animals under their care, as well

as abiding by New Zealand animal welfare laws. The deer industry has an industry code of practice which specifies actions farmers must take to ensure good animal welfare practices.

As well as New Zealand law, deer farmers are increasingly being subjected to the QA requirements of international customers such as UK supermarkets. One risk for the industry is the imposition of foreign standards on New Zealand conditions, when the outcome might be less than optimal, says Moffat.

animal welfare codesThe codes of recommendations and minimum standards for the welfare of animals at salesyards have been pre-pared by the Animal Welfare Advisory Committee (AWAC), which was es-tablished in 1989. AWAC consists of members from the farming commu-nity, animal welfare groups, the veteri-nary profession, animal behaviourists and the Ministry of Agriculture and Fisheries. It also includes the chair-man of the National Animal Ethics Advisory Committee and an inde-pendent chairman.

Extensive consultation takes place with industry and other interested groups in the development of codes.

In February this year, NAWAC completed a review of the Animal

Welfare (Layer Hens) Code of Welfare 2005 and a draft code was released for public consultation.

The review was programmed so it could re-examine the use of cages for layer hens in light of new research and current good practice.

The draft code proposes that the use of cages be phased out. From a date to be determined following consultation, all housing for layer hens must provide sufficient space to allow hens to stand erect over all the available floor space and to extend and flap their wings. Housing must also allow hens to lay their eggs in a discrete nesting area, perch, and show foraging and dustbathing behaviour.

This could include housing in enriched colony systems, barns (hens are loose inside a shed) and free-range housing (hens have access to the outdoors).

NAWAC chairman Dr John Hellstrom said the challenge with non-cage alternatives for layer hens is that management has to be sufficient to deal with disease and aggression problems that can arise.

NAWAC does not want to see layer hens experiencing worse animal welfare as a result of any transition away from cages. Changes to management practices take time and are essential to ensure that welfare is improved.

free-range chicKen in demand

Demand for free-range chicken is growing rapidly

and Rangitikei Corn Fed Free Range Chicken has

built an impressive reputation for producing healthy,

tasty chickens over more than a decade. The natural

properties of corn give Rangitikei chicken its distinctly

mouth-watering buttery flavour and freedom out in the

sun ensures for a beautiful golden meat that is rich in

texture, freshness and depth of flavour.

Rangitikei Chicken is available as fresh whole chickens

or in convenient portion packs of breast fillets, thigh

fillets or drumsticks. Rangitikei Hot Cooked Chicken

is also available from the deli hot cabinet in selected

supermarkets.

From another supplier come Waitoa chickens, which

have been raised under accredited FREPANZ (Free Range

Egg and Poultry Australia New Zealand) standards.

All Waitoa chickens are raised with access to wide

open spaces during the day and are provided the finest

quality feed, says a company spokesperson. Their grass

ranges are carefully managed, offering space to roam,

and trees for shade and shelter.

Waitoa free-range products include fresh whole chicken,

skinless thigh and breast fillets, and drumsticks.

Waitoa Free Range Chicken is committed to quality

and is a trusted name for your free-range poultry

requirements. For more information contact your local

distributor or visit www.waitoafreerange.co.nz, says a

company spokesperson.

april 2011 FMCG 31

feature

EF:I8K`>>>Li>iìV>i>ì>i>ì

/V

vii`v>V

>>i

Hellstrom noted that despite NAWAC proposing a phase out of cages it will not make a final decision on when this will occur until after public consultation.

dry sow stalls to be phased outThe Animal Welfare (Pigs) Code of Welfare 2010, was reviewed in December by the Minister of Agriculture, encouraging all those re-sponsible for pigs to adopt the high-est standards of husbandry, care and handling.

NAWAC has completed its review of the 2005 code, which was programmed so issues surrounding the use of confinement systems such as farrowing crates and dry sow stalls in pig production could be re-examined.

While the code does not immediately ban the use of crates and stalls, it does introduce a five-year phase-out of dry sow stalls and sets new limits for the amount of time they can be used for pregnant sows after mating, and for farrowing and lactation.

Accordingly, The Animal Welfare (Pigs) Code of Welfare 2010 contains standards that: limit the use of dry sow stalls to four weeks after mating from December 2012; prohibit the use of dry sow stalls after mating from December 2015.

Hellstrom says the code signals the direction the Committee and Government wants the industry to take and strongly encourages the identification and adoption of systems that improve overall animal welfare as soon as possible.

We have set a clear end point for sow stall use after mating to improve pig welfare and sent a clear signal that highly intensive, indoor pork production is not acceptable to many New Zealanders. This is a strong message to intensive producers that they need to make changes.

Hellstrom adds that the code reduces the maximum time sows can be confined to half that of current

standards by the end of 2012, and the maximum time is further reduced by the end of 2015 ensuring all sows have freedom of movement for the majority of their life.

These standards put New Zealand one step ahead of many other countries and help strengthen our reputation in animal welfare, he says.

Other significant areas addressed in the code include stockmanship; the provisions of food and water; shelter, disease and injury control, and welfare assurance systems.

The code review took place in consultation with the pork industry, representatives of farmers, veterinarians

and animal welfare organisations.The Animal Welfare (Pigs) Code

of Welfare 2010 is available online at http://www.biosecurity.govt.nz/animal-welfare/codes/pigs/index.htm or by request from [email protected].

Freedom Farms pigs.

32 FMCG april 2011

Cafe style at home

star in a series of ads through 2011 helping deliver the campaign message across the Greggs stable of instant coffee products.

Cerebos supplies Greggs Mainstream Instant Coffee (powdered and granu-lated), Greggs Cafe Gold Freeze Dried, Greggs Cafe Gold Flavoured, Robert Harris Freeze Dried & Special Blend (powdered & granulated).

Since the launch of Greggs Cafe

Gold Flavoured in 2009, Cerebos now has a brand in every segment of the Instant Coffee category.

We have several exciting NPD launches across our portfolio planned for later this year, watch this space, says Instant Coffee category brand manager Fraser Shrimpton.

He adds: The total Instant Coffee category is valued at $142.9m MAT* and growth is relatively flat at 2.2%

Coffee bean costs are rising to all-time-high levels, putting enormous pressure on price points. FMCG took a close look at Coffee, Tea and other segments within the Hot Beverage category.

It seems like 2011 is going to be a big year for the Greggs instant coffee brand.In April Greggs will launch a new advertising campaign with the aim of raising the profile of Greggs Instant Coffee with category buyers. Greggs Instant Coffee is a Kiwi icon so who better to star in the new cam-paign but two other much loved Kiwi icons, The Topp Twins. The Topps will

april 2011 FMCG 33

THE BREAKDOWNCurrent MAT to 27 Feb 2011

Total Coffee: $186.745m

Val % Chg YA 2.2

Total Instant Coffee: $108.517m

Val % Chg YA -1.3

Total Roasted & Ground Coffee:

$40.584m

Val % Chg YA 3.1

Total Flavoured Coffee: $33.694m

Val % Chg YA 14.8

Total Coffee Additives: $2.070m

Val % Chg YA 9.1

Total RTD Coffee: $332,744

Val % Chg YA -34.1

Total Coffee Substitutes: $653,058

Val % Chg YA -6.1

Total Drink Whiteners: $557,151

Val % Chg YA -4.8

Total Coffee Filters: $117,987

Val % Chg YA 7.0

Total Coffee Essences: $219,401

Val % Chg YA 0.5

Total Tea: $75.470m

Val % Chg YA 0.8

Total Tea (Black Tea only): $51.800m

Val % Chg YA -2.0

Total Herbal Tea: $12.051m

Val % Chg YA 0.5

Total Green Tea: $6.907m

Val % Chg YA -1.9

Total RTD Tea: $4.713m

Val % Chg YA 60.8

* ACNielsen New Zealand ScanTrack (Databank)

MAT*. Flavoured Instant Coffee continues to be the largest growth driver, growing at 15.1% MAT (value growth)* and valued at $34.4m MAT*. New consumers are fre-quently entering. Larger pack formats (15 packs and 20 packs) are experi-encing significant growth due to this product being a staple in many instant coffee drinkers pantries.

With the current economic climate consumers are more frequently looking for value for money offerings.

Shrimpton comments: This shift in consumer behaviour has a significant impact on the economy instant coffee segment shifting it back to growth in the last 12 months (Total Economy segment 5.4% value growth MAT*). Cerebos Greggs economy brand Special Blend performed exception-ally well currently growing ahead of the segment at 15.1% value growth MAT*, he says.

This growth of the Economy seg-ment has had a negative impact on the Mainstream segment, which is currently in value decline at -6.5% MAT*.

Greggs powdered and granulated instant coffee is already made locally in Dunedin and has been since the 1960s. Cerebos has made significant capital investment to install a dedicat-ed Flavoured blending and packag-ing line in Auckland and will be the only local manufacturer of Flavoured Instant Coffee helping make Greggs the truly

Documents

FMCG April 2011