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April 2020 • Vol. 13 No. 4
Supply chains disappearing into the COVID Vortex
Sparkling
NO SUGAR, LIVE Naturally CULTURED
Bursting with
ORGANIC ACIDS
(see page 15)
Packs a
PUNCH
in
TEA POLYPHENOLS
editorialcomment
ATTENTION GROCERY SUPPLIERS
ONLINE BOOM OR BUST FOR SUPPLEMENTARY SUPPLIERS While supermarkets have played a key tole in the lockdown, and will continue to do so, an interesting side issue has been the development of online activity in the grocery category. In addition to the two big players leading the way, a number of other suppliers entered the space offering service levels we haven’t seen before. But the big question is what the consumer may do when this pandemic disappears, as it will. Early research both here and overseas indicates there just may be a future in this sector of the market, especially for foodservice suppliers who discovered this new niche when their regular customers were closed.
Sarah Mitchell Editorial Director
sarah@reviewmags.com
Clearly the level of on-line food and beverage shopping will not continue at its pandemic level because the instore experience and selection is far greater, but there is surely a section of the public who will continue to buy from the suppliers they used for home delivery during lockdown. Certainly, the pandemic has brought lifestyle changes for all of us but the big question that will remain is whether the consumer will go without the in-store specials and experience, pay for the cost of delivery and be at home to receive goods within the available delivery times. And of course, whether the foodservice cash & carries will continue down this street when their normal customers come back into the market. There has been one supplier already that has sent out an email thanking customers for purchasing fruit and vege from them during lockdown, but now it was level 3, they were not supplying the public anymore and going back to their core business. The continued activity could well be focussed on nom-perishable categories, but the fresh area is one that is personal in-store choice and often not one that consumers like to be selected by either a robot or a personal shopper no matter how experienced.
The Food and Grocery Council is an industry association for grocery suppliers providing members networking, events, industry information and strong advocacy. 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
food& grocery COUNCIL NEW ZEALAND
www.fgc.org.nz
Enjoy the issue.
departments
03 News 06 Rising Star 08 Store of the Month 12 International Aisle 14 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
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
news ART FOR GOOD
VILLA MARIA MOST TRUSTED WINE Villa Maria Estate has been voted as the Reader’s Digest Most Trusted New Zealand Brand for 2020. It is the third time in the last five years the family-owned New Zealand winery has won this award. Reader’s Digest approached New Zealand consumers asking their opinions on what brands of products and services are important to them. This year, more than 1,400 New Zealanders were interviewed to decide on winners in each of the Most Trusted categories. Cost, quality and desirability of brands and its products or services are all important factors for consumers according to the survey. “We are New Zealand family-owned and have been part of the Kiwi wine lover’s repertoire for almost 60 years, and this is something we’re immensely proud of. This trust in the brand suggests consumers will continue to turn to Villa Maria for world-class wines fitting for all occasions for many years to come,” said Villa Maria CEO, Justin Liddell. Villa Maria has been New Zealand’s most awarded winery for over 40 years and this accolade comes just weeks after being named one of the World’s Most Admired Wine Brands and the highest-ranking New Zealand winery by Drinks International. n
Four Square and New Zealand artist, Dick Frizzell, have teamed up to produce an artwork print with all profits of the prints going towards supporting New Zealand charities. There are three New Zealand charities customers can choose from when they purchase a piece of art, KiwiHarvest, Lifeline and Women’s Refuge. “Four Square’s DNA is by locals for locals, and we have a responsibility to look after all New Zealanders and our communities, especially during this challenging time,” said Kamran Kazalbash, Head of Marketing and CX for Four Square. “We collaborated with Dick to identify how we could support local charities who are experiencing an increase in demand due to COVID-19. “KiwiHarvest, Lifeline and Women’s Refuge are incredible charities who have a presence in every community across the country. We’re giving customers the option to choose which charity they would like to support so they can have a positive and direct impact on a charitable cause that is
FRUCOR SUNTORY APPOINTS CEO
Frucor Suntory has announced the appointment of Darren Fullerton as CEO (Australia and New Zealand). Fullerton has a wealth of knowledge about the beverage industry from his extensive career at PepsiCo, spanning 18 years across multiple functions. As CEO (Australia & New Zealand) for PepsiCo for a number of years, Darren brings a wealth of market and product knowledge to Frucor Suntory. Most recently, he led Winc, a $1bn+ market leader in office products and business solutions across Australasia. “It’s truly an honour to be joining the Frucor Suntory team and to be able to play a part in the next incredible chapter of a business I have always had great respect for,” said Fullerton. “Strong brands, a vibrant culture, and a thirst for success are hallmarks of most successful businesses – and I look forward to building on these inherent strengths at Frucor Suntory.” n
COUNTDOWN OPENS DARK STORE Countdown has opened New Zealand’s first purposebuilt, and permanent, eStore in Auckland, which will help the supermarket business service the significant and growing demand for online shopping delivery. The 8800sqm store in Auckland’s Penrose looks like a regular supermarket, with a butchery, bakery, shelves of packaged grocery items, fresh fruit
and vegetables. A team of 200 personal shoppers (including 105 people brand new to the Countdown business), over a mix of full and part-time roles, will run the dedicated eStore and complete online orders for customers from ten of Countdown’s busiest Auckland supermarkets. The Penrose eStore aids the company’s swift response to the Covid-19 demand, which has already seen six stores temporarily close to help increase online shopping capacity and ensure delivery services can be prioritised to those most in need at this time. “Demand for Countdown’s online shopping service was in significant growth even before the Covid-19 outbreak but the situation we are now in has made it even more critical to Penrose opening on time,” said Countdown’s General Manager Digital, Sally Copland. Operating 24 hours a day and seven days a week, the 8800sqm Penrose eStore will have the capability to fulfil more than 7500 online orders each week, thanks to a layout based on sales data that increases picking efficiency. n
close to their heart.” The artwork print, in true Dick Frizzell style, features Mr. Four Square and his family, reminding New Zealand to stand together in solidarity during an unprecedented time. Mrs. Four Square and their two children are ‘new’ characters and have not been featured widely before. Dick will also personally sign every artwork print. n
UNILEVER DONATES HAND SANITISER Unilver ANZ has donated 30,000 cans of hand sanitiser to Kiwis in need as it redirects existing deodorant production facilities to meet national demand and help in the fit against Covid-19. The donation – valued at over NZ$225,000 – was made to Foodbank Aotearoa New Zealand, to manage distribution across New Zealand. The new 150ml aerosol hand sanitiser, which contains over 70 percent alcohol and kills 99.99 percent of germs without water, will also be made available to the wider public and will hit shelves by the end of May in leading New Zealand supermarkets. “Unilever has a long history of contributing to personal hygiene in New Zealand and across the world – beginning with the creation of Sunlight soap by Lord Lever in the late 1880s,” said Nick Bangs, general manager, Unilever New Zealand. “We believe we have a social, medical, and moral obligation to make hand hygiene readily available. That’s why we’re rapidly innovating and redirecting some of our manufacturing facilities to increase the supply of essential products in New Zealand.” n
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news SUPPLIES FOR TOKELAU FOODSTUFFS NI LAUNCHES ESSENTIAL BOXES
Gilmours Mount Roskill have joined a joint effort to supply a food security package for Tokelau to ensure its residents have grocery essentials during Covid-19 restrictions. An effort between the Government of Tokelau, the Tokelau administration team based in Apia, Ross Arden (Administrator for Tokelau), MFAT New Zealand and Gilmours Mount Roskill, four shipping containers full of grocery and household essentials embarked on a sea voyage bound for Tokelau on April 21. Departing from Auckland Port, the boat will arrive to Apia, where the shipping containers will be moved to a smaller boat bound for Tokelau’s three atolls. The shipping containers contain
shelf-stable essentials such as long-life milk, rice, pasta, canned goods and cleaning products. “Tokelau is a very vulnerable and isolated nation with limited selfresources,” said Robert O’Halloran, Contractor for the Government of Tokelau. “We needed a ‘one stop shop’ where Tokelau could purchase grocery essentials. We also needed to find a wholesale partner who could receive the shipping containers, pack them full of grocery essentials and send them to the port for loading, which is no easy feat in general, let alone during a global pandemic. I called Gilmours Mount Roskill, knowing they would have the facilities and supply, and they didn’t hesitate to lend us a helping hand.” n
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Foodstuffs North Island is piloting New World Essential Boxes to give New Zealanders an express shopping option to get their grocery essentials quicker and more conveniently during the Alert Level restrictions. The pilot launches today featuring a suite of three essential boxes and will be trialled in central and outer central Auckland suburbs. The New World Essential Boxes are powered by Gilmours, Foodstuffs North Island’s wholesale brand, which has the delivery fleet and access to wholesale quantities of product enabling the New World brand to increase online order capacity for its customers. “We’re doing our best to keep innovating during the lockdown with our primary goal of meeting the grocery needs of all our customers,” said Chris Quin, CEO, Foodstuffs North Island. “No matter the Alert level, New Zealanders are looking for options as to how they can get their grocery essentials so they can stay home and stay safe.” The New World Essential Boxes are ideal for individuals or families who are looking for an express shopping option, or for the elderly or vulnerable who are unable to leave their homes. The boxes can also be purchased on behalf of someone else, saving the recipient a trip to the store. In addition, for every box purchased, New World will make a donation to Eat My Lunch to help feed Kiwi kids in need. n
COUNTDOWN FASTTRACKS ROTOTUNA STORE Countdown has opened its brand-new store in Rototuna, one month earlier than planned, with the store initially solely focused on the significant demand for online shopping seen in the wake of the Covid-19 pandemic. As well as home delivery, the new Rototuna store will offer Hamilton locals contactless convenience with a store-toboot Drive Thru for online customers using Countdown’s Pick Up service. Originally set to open at the end of May, Countdown’s general manager digital, Sally Copland said the Covid-19 environment meant the supermarket needed to act swiftly and change course. “With New Zealanders staying home for the lockdown, more people than ever want groceries delivered to their door or ordered online for pick up. We made the call to open our Rototuna store early as an online-only fulfilment site to help increase our online shopping capacity in the Waikato area and support more customers,” said Copland. “We’ve already closed six other stores temporarily around the country to support online shopping, and last week we opened the first dedicated eStore in Auckland. All of this is designed to help increase the amount of pick-up and delivery we can offer to Kiwis at this challenging time.”
“Opening Rototuna first for online orders means our personal shoppers can shop for our customers without getting in the way of other customers in the store aisles. We’ll also be packing online pick up orders directly to the car boot – giving our customers a contactless experience to collect their groceries without leaving the car. With physical distancing in place we’re expecting this to be a popular choice for people who are able to leave their homes.” Operating 12 hours a day and seven days a week, the new Rototuna store will have the capability to fulfil more than 2,500 online orders each week and service the wider Hamilton region. A date for public opening will be decided later down the track, expected to be in late June 2020. The supermarket will also be the first Countdown store in the country to test a range of new technologies when it opens to walk-in customers, including the deployment of a safety robot. The 6-feet-tall robot, affectionately named ‘Kai’ by the Rototuna team, will roam the store scanning for potential safety hazards on the floor, which the team will then respond to. It is also able to identify gaps in shelves, assisting the team to keep popular products stocked. n
LEADING THROUGH COVID-19
As I walked my dogs down the street yesterday it was a very strange feeling, people walking on the road to avoid me, very few if any cars, but people were friendly, but you could tell some were nervous.
Gerry Lynch
CEO, Delmaine Fine Foods
INTEGRATION
In times of crisis your leadership will be tested, and your people expect you to step up to help them to feel safe. So firstly, what can you do to look after yourself? If you are not looking after yourself then you can’t look after anyone else. Understand how you are feeling – not Thinking – feeling and have an outlet to share this with. It could be a colleague, your partner, a friend, but it is important you have someone you can talk to regularly. Try and keep to as much of your routine as you can, get exercise even if it is a walk around your street. If you used to go to the gym, be creative and
HQ MANAGEMENT
find things at home you can use for weights. Eat well and try to get more sleep. Think about ways to ‘De-Covid’, tune out, try a mindfulness app (headspace or the free app smiling mind), try some Tai Chi on you tube – here is the guy I go to Tai Chi with who I am now seeing virtually https:// www.youtube.com/watch?v=4iO5_ UrMUmQ. Put your phone away at a certain time and stop listening to the news. Find another hobby or something else to watch. What your team need from you? Calm - Your team need you to demonstrate calmness during a turbulent time. If you are panicking and all over the place that will raise their anxiety. Listening – Your team will have concerns, they want to know that you are not only listening to them, they want you to demonstrate that you are listening to them by you repeating back to them and showing it in your actions. Communication – They want to see honest and authentic communication, not policies and procedures. Share what you are going through – some humility goes along way. Try to ensure you communicate at least daily to everyone in your team, and if you are the CEO/ GM everyone in the business. If everyone doesn’t have a company email address, get their personal
emails – communication from the top, regularly, will help people through this. Fun & Connection – Have a bit of fun, keep spirits up, humour is a great way to reduce stress Act with Compassion – You may have to make some tough choices, people maybe laid off, or take reduced hours. As a leader you are there to make these tough calls for the good of your whole business, so make the call but be very cognisant of the impact it will have on your people and that you ensure you do what you can to help people understand why you have had to make the call and what you will do to help people. Don’t just share policy with them, this is an unusual situation so will most likely not be in your policy. If you have isolated someone, for no fault of their own, who could otherwise come to work and you are asking them to take annual leave, is this fair and compassionate? Remember that what you do in a crisis and how you treat people will stay with them; they will reward you for treating them well and for compassionate leadership, they will reward you with a lack of engagement otherwise. Take care through this time, I wish you well and if you need any support please contact myself or Liz May at ShopCare (Liz@shopcare.org.nz) who can help you through this crisis. n
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