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February 2020 • Vol. 13 No. 2
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ATTENTION GROCERY SUPPLIERS
BACK TO SCHOOL SALES SURGE
The Food and Grocery Council is an industry association for grocery suppliers providing members networking, events, industry information and strong advocacy.
Sarah Mitchell Editorial Director
sarah@reviewmags.com
The back-to-school madness is in full force for parents who are busily stocking up on lunchbox staples, after school snacks and on-the-go breakfast options. Nielsen has previously reported that the sales for the week show strong performance with some categories showing a sizeable lift. With consumers continuing to seek out ‘better-for-you’ products, this has helped to drive sales of nutrient rich bread options, convenient on-the-go snacks, free-from and the low and no categories. Following the holiday season, manufacturers have been racing to get new products on shelf that will quickly become a lunchbox favourite. Parents are seeking out products that are convenient go-to’s in a bid to create healthier lunches for their kids. Not only this, product purchasing can be determined by a combination of selection, convenience and low prices. According to previous reports from Nielson, cookie and cracker categories continue to see significant growth, particularly snack packs and individual serving sizes. Retailers increasingly view this season
diarynotes
Contact us for information on the benefits of membership: katherine.rich@fgc.org.nz • Networking • Industry Updates • Conference and Events • Education and Training • Advocacy and Law Reform as a prime opportunity to promote food items, often with a focus on nutrition. Globally, stores make the most of merchandising opportunities, giving shoppers a visual reference and example of what they can include in lunchboxes for the upcoming term. At one store in the USA, the aisle end display includes recipes and ideas for items to include in a healthy lunch, along with accessories such as food carriers and lunchboxes. It also proudly displays a sign-up area where customers can ‘pledge to pack a healthier lunchbox’. For each pledge, Produce for Kids, an initiative backed by local growers and suppliers, donates $1 to Feeding America. This cross-merchandising can be a way that all the aisles can come together to inspire lunchbox selection. Consider also the rise in zero-waste packaging
policies that is being implemented in schools, kindergartens and playcentres, so be sure to include resealable, reusable, and plastic-free food carriers and containers. Help parents navigate through the store and aid their quest for kid-friendly options. Path to purchase is also of interest to grocers during this time. So many consumers are facing time-poor days and weekends and are turning to delivery and click and collection options. Connecting with consumers online is a key factor in ensuring retailers can traction the most out of the back-toschool season. Website takeovers, direct mail outs and social media promotions target the digitally savvy parents, particularly with the added bonus of promotional offers. Enjoy the issue.
March 29-31:
Parizza, France
April 15-17:
Anufood, Shenzhen, China
April 15-17:
SIAL Canada
July 13-16:
FHA HoReCa
departments
04 News 14 What's New 18 Reduce, Reuse, Recycle 24 Lunchbox Feature 30 Global What's New
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SupermarketNews is published under license. Please direct all enquiries and correspondence to SupermarketNews. The opinions and material published in this edition of SupermarketNews are not necessarily those of the publishers unless specifically stated. All material in this publication is copyright and may only be reproduced with the consent of the publisher. Copyright 2020
CHAIRMAN PUBLISHER GENERAL MANAGER EDITORIAL DIRECTOR EDITOR ADVERTISING SALES SENIOR DESIGNER GRAPHIC DESIGNER
ISSN No.
PETER MITCHELL Tania Walters, tania@reviewmags.com Kieran Mitchell, kieran@reviewmags.com Sarah Mitchell, sarah@reviewmags.com Caitlan Mitchell, caitlan@reviewmags.com Felicity-Anne Flack, felicity@reviewmags.com Harsha Thanthriwatte, harsha@reviewmags.com Raymund Sarmiento, raymund@reviewmags.com Debby Wei, debby@reviewmags.com
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food& grocery COUNCIL NEW ZEALAND
food& grocery COUNCIL NEW ZEALAND
www.fgc.org.nz
The NEW ZEALAND BEVERAGE COUNCIL is an industry association whose members cover all aspects of the non-alcoholic beverage market both in New Zealand and the export markets. The Council members are spread throughout New Zealand and come together annually for a conference that covers industry issues and is addressed by international speakers. The organisation monitors product quality, sets standards for the industry and runs national competitions and awards.
THE NEW ZEALAND BEVERAGE COUNCIL (NZBC) P.O. Box 47, AUCKLAND 1140, New Zealand. Email: info@nzbc.nz Phone: +64 9 309 6100 DDI: +64 9 302 9932
IS YOUR BRAND BUILT FOR SUSTAINABILITY? To stand the test of time, brands need to move with the times. That’s why we’ve spent 10 years helping ecostore in their quest to find new ways to care for our planet — like designing New Zealand’s first package made from 100% Ocean Waste Plastic. Times change, principles endure. To keep your brand future-ready, email heath@specialgroup.com
Brand Strategy— Identity Design— Packaging specialgroup.com /design 09 846 2402 February 2020
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news WORLD FIRST FOR WINE Family-owned Kiwi winery Giesen has launched the world’s first alcohol-removed Marlborough Sauvignon Blanc. The landmark innovation will allow consumers around the world to enjoy a glass of New Zealand’s popular and distinctive grape varietal on any occasion while moderating their alcohol intake. Over the last two decades, a ‘sober-curious’ trend has swept the globe as more people swap full-strength wine, beer and spirits for low or noalcohol counterparts. This trend will continue to
rise according to the European Zero Alcohol Drinks 2019 Report which predicted global sales to grow 10 percent year on year for the next five years. To produce a no-alcohol wine, the Giesen winemakers use an innovative spinning cone technology popular in perfume making - which separates the fragrance and alcohol from the wine. Once the alcohol is removed, the distinctive distilled aroma unique to Marlborough Sauvignon Blanc is added back into the wine. n
PRODUCE WITHOUT PLASTIC
NEW CEO FOR HARRAWAYS After 20 years as Chief Executive Officer of New Zealand’s only oat mill, Dunedin based Harraway & Sons Limited, Stuart Hammer has announced his retirement. The Company’s Chairman, Trevor Scott, said that over this period, under Stuart’s sound management and guidance, Harraways has experienced substantial growth together with manufacturing efficiencies that have resulted in the Company becoming a market leader within its product range. The Board wishes Stuart a long and happy retirement. Scott is also pleased to advise that Henry Hawkins has been appointed as the new Chief Executive Officer of the Company. Hawkins brings a wealth of local and international experience, and knowledge of the food manufacturing sector to the Company. Harraways is fortunate to have him in this role as it embarks on its continuing journey of growth, supplying quality products to both the local and export markets. n
Customers in three Countdown stores will see a new produce shopping experience with plastic being removed from fruit and vegetables as part of a ten-week plastic reduction test by the supermarket. In addition to the sixty-eight products that have been ‘unwrapped’ from their usual plastic wrap or pack, plastic produce bags have also been removed as part of the test, which launched at Countdown supermarkets in Orewa, Ponsonby and Manukau in Auckland. Customers will see more loose produce as well as specially-designed paper bags and cardboard packaging. Countdown is encouraging customers to use reusable bags for produce, and in the bulk food section plastic bags have been replaced with paper bags. “Our teams serve three million New Zealanders every week in our stores. While it might sound easy to change packaging, there is a complicated system behind the scenes to ensure that we can provide great quality, fresh food for every single one of those
customers every day. ‘Unwrapped’ will change the way our customers shop for ten weeks, but it could have a long-lasting impact on how all New Zealanders shop in the future and help guide our next steps,” said Countdown’s general manager corporate affairs, safety and sustainability, Kiri Hannifin. n
100 STORE MILESTONE
TASTIER BERRIES
Consumers across the world may soon be experiencing tastier, fuller-sized blueberries year-round, thanks to two new partnerships in blueberries that will bring premium quality berries with superior genetics, in secured volumes, to customers across the world. T&G Global and science organisation Plant & Food Research have announced they are entering into a new agreement to breed and commercialise exciting new varieties of blueberries to be sold globally. The breeding programme will produce new varieties of blueberry that will provide improved yield and
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The opening of New World Pukekohe marks the amazing milestone of 100 New World’s in the North Island. This next generation store, which will serve as the cornerstone for future New Worlds, redefines the customer experience for supermarket shoppers. “New World has been constantly evolving since its birth in the sixties,” said Chris Quin, CEO of Foodstuffs North Island. “Our 100th New World in the North Island marks the start of the next generation of New World stores; New World Pukekohe blends the latest innovations with strong cues to the uniqueness of the local community, something we plan to repeat in future New Worlds.” New World has long been an iconic brand that’s synonymous with customer experience. “New World evolved out of a Four Square
resistance to disease while also delivering consumers larger, tastier berries over a longer period, with an extended harvest season. The first new commercial varieties could be launched globally in the next 12 months under T&G Global’s Orchard Rd brand. “Blueberries are a key strategic play for us in building
promotion as ‘A New World of Shopping’,” said Quin. “The first official New World was New World Milford on Auckland’s North Shore in 1964 and ever since the doors opened, the brand has consistently pioneered to bring customers the best experience and value New Zealand has to offer.” With a grand total of 143 New World’s nationwide, there’s been some significant changes to store design and visual identity over the last half century. As the car got more popular the car parks got bigger and spaces wider, refrigeration and air conditioning became store staples, computerised stock control and checkouts saw the end of the trusty label gun, as fashions changed so did the uniforms; and more recently, self-checkout and on-line ordering through I-Shop has broadened customer options and choices for New World customers. n
our global portfolio, and we’re delighted to build another global category to emulate the success of our premium apple brands. We know there is strong consumer demand for blueberries and teaming up with Plant & Food means we get access to a pipeline of world-class varieties,” said Gareth Edgecombe, CEO of T&G Global. n
SNAP FROZEN... FROM THE EARTH OR THE SEA
birdseye.co.nz
February 2020
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techbytes HEALTHY PICKS APP LAUNCHES When it comes to the weekly grocery shop, consumers are wanting to know that they are making the best possible choices for their health and their family and it can sometimes be a daunting task. To make consumers’ shop less complicated, and more health focussed, ALDI Australia has launched a Healthy Picks app. Developed in partnership with The George Institute for Global Health, the app allows users to scan the barcode of any ALDI product while they shop. Once an item has been scanned, it will display the nutrition information of the product and guide the user to understand the amount of energy, saturated fat, sugar and sodium. Clare Farrand, Public Health Nutritionist at The George Institute said that while it is known that fresh is best, choosing healthier packaged products isn’t always as easy. “We have developed the Healthy Picks app for ALDI to support their shoppers to make
more informed choices. The app displays nutrition information for every packaged food and drink product as either a Health Star Rating or Traffic Light Label, to give simple, easy to understand information about the healthiness of each product. From there shoppers can decide if they want to buy it, or switch to an alternative,” she said. If consumers want an alternative option in their trolley, the app will recommend a product in the same or similar category which could be considered a healthier option based on its Health Star Rating. If they are looking to cut down on either sugar, salt or fat – or a combination of these – the Traffic Light Label will help give you options with less or more of what they want. This allows users to make an informed decision about what to buy. For shoppers seeking vegetarian alternatives, the app uses a green side bar to indicate which products are suitable. n
ICE CREAM DRONES Terra Drone Europe and Unilever have joined forces to explore drone delivery of ice creams in New York. In a programme undertaken at Unilever’s recent annual investor event, Ben & Jerry’s ice cream cups were delivered to a pre-determined destination by drone. The demo was conducted as part of Unilever’s ice cream delivery service, ‘Ice Cream Now’. During the demonstration, a multi-copter drone was fitted with a delivery box designed to carry three Ben & Jerry’s mini cups. The company launched the ‘Ice Cream Now’ ice
cream delivery service back in 2017 and it has now grown into a huge business worldwide. With regulations around future drone flights expected to become more flexible, the consumer goods company is preparing for a drone logistics service that will deliver products to more customers faster. “We want to solve serious problems in the logistics field, such as carbon dioxide emissions, with drones. As deregulation progresses, worldwide, drone delivery services will also increase.” Terra Drone and Unilever will continue to cooperate in the field of logistics services,” said Yuki Ueno, Director of Terra Drone Europe. n
brilliant, which customers seem to love. The whole idea of the test is to collect feedback and gather views and from what we’re seeing so far, it is all very positive. If
you’d have said to me five years ago that we would have 3D holograms in stores I would have laughed at you – but they are fantastic.” n
STORES GO 3D An Asda store in the UK is bringing together a number of tests that will give customers a glimpse into what the future could hold in store for retail. From 3D holograms to electronic shelf labels, the technologies that are being tested are designed to make customers and employees lives easier and create an even better shopping experience. The store is already testing over twenty different technologies since phase one of the project was launched late last year with more to come throughout 2020. Michael Rose, who is part of the project team based in store said the concept at the Asda store is about testing and learning from the latest technology available to retailers, with both customers and for colleagues being asked to share
their thoughts, and encouragingly the feedback received so far has been very positive. “We’re testing new tools which will make our colleagues’ lives easier and our customers’ shopping experience better. Having multiple projects running at the same time will mean we will see the benefits of how different tech works together,” said Rose. “We were excited to be one of the first retailers in the UK to test out the 3D holograms in our store, which are projected in the air to showcase products and provide customer information. They are currently in place in our bakery department, seasonal aisles and on Scan & Go points and are proving very popular with customers. They are very eye catching and the clarity on them is
CASHIERLESS STORE PILOT 7-Eleven is pushing the technological envelope once again, testing a cashierless store at its corporate headquarters, in Texas. During the pilot, the 700-squarefoot non-traditional store is available to 7-Eleven employees.
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“Retail technology is evolving at a rapid pace and customer expectations are driving the evolution,” said 7Eleven President and CEO Joe DePinto. “Our team is dedicated to continuing 7Eleven’s legacy of innovation with industry-leading digital solutions. Most recently that has included our award winning 7-Rewards loyalty platform, 7Now on-demand delivery, mobile checkout, and now our new cashierless store.” A proprietary mixture of algorithms and predictive technology enables the store system to separate individual customers and their purchases from others in the store. The concept store offers an assortment of the most popular products sold in 7Eleven stores, including beverages, snacks, food, groceries, over-the-counter drugs and non-food items. The product mix will continue to be refined. The ultimate goal is to give consumers a faster, easier transaction and a seamless shopping experience. Introducing the technology and concept to employees first has proven to be a very productive way to test and learn before launching to a wider audience. They are honest and candid with their feedback, which enables the business to learn and quickly make adjustments to improve the experience. n
WAYMARS TRADING
Waymars is dedicated to exporting New Zealand food products to the Pacific Islands and in particular Fiji with its specialist service giving consumers outside of New Zealand access to a wide range of new products. Formed in 2006, Waymars, both Wayne and Margaret have extensive experience and have been involved in the grocery industry for many years. The duo saw an opportunity to export some of the brands they currently sold in the local New Zealand market. Despite Fiji having a population of close to a million and it being one of the largest in the Pacific region, there are a significant number of challenges and road blocks that businesses have to overcome when doing business there.
“Firstly working through the very strict compliance regulations regarding the import of food products into Fiji,” said Wayne. “Secondly, overcoming the 32 percent import duty on top of the cost of international freight, retailer margins and 15 percent VAT can often be a deterrent. Lastly, managing the five to six major supermarket groups in Fiji accounting for over 60 supermarkets.” There are many opportunities for businesses to trade with Fiji with supermarket groups and foodservice distributors always looking for new and exciting products to introduce to their customers. “Over the last five-six years, the major supermarket groups have upgraded their retail stores to a standard comparable to New Zealand.” Fijian consumers are demanding a better choice of products, brands and service. The political environment in Fiji has stabilised over the last few years giving consumers confidence to spend money. “Alongside this, the tourism industry
in Fiji continues to show good growth with increases of up to 20 percent per year over the last two to three years.” While the standard supermarket categories of biscuits, snacks, baking and beverages continue to be regular purchases by Fijian consumers, Waymars have noticed a trend towards healthier, ‘better-for-you’ products like gluten-free and vegetarian products. The business is in a position to be able to help to assist New Zealand manufacturers and suppliers work through the compliance issues through its strong working relationship with Fiji Biosecurity, Fiji Customs and the
Fijian Competition and Consumer Commission. Consolidation of shipping containers for ambient and frozen products are carried out in Auckland with a ll shipping documentation handled by Waymars. Airfreight chilled cargo is also handled out of Auckland with documentation handled by the company. For more information about trading in Fiji or the opportunities for your business and products contact Wayne Hill on 021 101 4438, email wayne@ waymars.co.nz or visit www.waymars. co.nz. n
Want to expand your business into FIJI ? With 14 years experience Waymars Trading can assist with selling in and managing your food or beverage business in Fiji.
Let us help to increase your profits. Call Wayne Hill on 021 101 4438 or wayne@waymars.co.nz February 2020
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