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2022 S P O N S O R E D

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[ FMCG Leaders Forum ]

THE REPORT TO OVERSHADOW THEM ALL 2022 has all the makings of a Woolworths NZ to supply other watershed year for the food and retailers at a wholesale level on fair grocery sector. terms and at competitive prices. There’s no doubt the arrival of But it was the Commission’s Omicron will demand we’re on full “possible last resort” that caused most alert, and at the time of writing there surprise: structurally separating the were already signs of panic buying in wholesale and retail businesses of supermarkets stretching the supply the two retailers. On a par with that chain. Couple that with the likelihood were recommendations enabling entry infected staff will be forced to isolate, by other major retailers, including adding even further pressure on the possible government sponsorship of supply chain, and we’re likely to be in a new entry, or requiring the major for a very demanding next few months. retailers to sell some of their stores to Through all this, there have been create a third big retailer. learnings from the lockdowns and These issues were explored in subsequent changes in consumer depth during the Commission’s online trends the sector is already taking on conference, and it will be fascinating board, and which we will see more of to see if they make the final version. as the year progresses. An indication came in Commerce IRI’s State of the Industry 2021 Minister David Clark’s response to report identified some of those, the draft findings when he said they including the huge rise in online “indicate that there are problems in shopping (up 40% in two years), the the market and that New Zealanders trend to more “functional” (health) would get better prices, ranges Chief Executive foods and ready to heat/eat meals, and and quality if there was increased NZ Food & Grocery Council consumers’ demand for brands to be competition in the grocery sector.” more sustainable. The rise in online is I’m quietly confident the interesting. IRI said such has been the recommendations to make the cut increase that stores not offering it risk will be those around the power being outpaced by their competition. imbalance between supermarkets Sustainability also will be a big and suppliers, including the issue. Food & Grocery Council introduction of an industry Code members are leading the way, with of Conduct for supermarkets. many brands setting their own While a Code will still preserve targets for packaging recyclability and competition, intended provisions reducing waste. will certainly ensure improvements For most of last year, shortages to some of the worst behaviours of global shipping and containers caused supply issues with imported suppliers have reported over the years. products and ingredients, and though that won’t be solved in a hurry, by During the conference, both major retailers agreed to support a year’s end we expect we will be closer to normal. Code similar to those in Australia and the UK. They include principles Apart from Omicron, the other big issue will be the Commerce of fair dealing, no payments for shelf position or theft or shrinkage, no Commission’s final report on its Grocery Market Study, due to be obligation to pay for marketing costs, no product deletions (except on delivered on 8 March. commercial grounds), and no pressure to hand over intellectual property It’s fair to say some of the recommendations of the draft last July for private label. Without doubt, a Code will improve the business surprised, in particular those aimed at improving conditions for entry culture and the treatment of suppliers, particularly at store level. and expansion by potential competitors by way of increasing access Because we all agree we need one, and have two models to work to wholesale supply. Options included requiring Foodstuffs and from, there’s no reason we can’t start early in the year.

Katherine Rich

“NEW ZEALANDERS WOULD GET BETTER PRICES, RANGES AND QUALITY IF THERE WAS INCREASED COMPETITION IN THE GROCERY SECTOR”

FMCG BUSINESS - LEADERS FORUM 2022

[ FMCG Leaders Forum ]

THE DYNAMIC APPROACH “WE CAN LOOK FORWARD TO CONTINUED GROWTH AND INNOVATION AROUND EVENING MEAL SOLUTIONS, AS WELL AS HOME-HEALTH BASED PRODUCTS THAT DELIVER MULTIPLE BENEFITS.” positioned, ensuring you are not stuck in middle ground between value seekers and those heading towards premiumisation. And don’t forget the detail; use analytical tools to test your elasticity versus that of your competing product sets, finding your upper and lower threshold limits.

2. Sustained growth in omnichannel

Craig Irwin Managing Director – New Zealand & Hong Kong IRI

When considering what 2022 holds in store, I would advise you don’t believe all the headlines you read. The past two years have been a rollercoaster for sure, but many of the extreme predictions on Covid – be they case numbers or economic impact – have been some way off. Of course, there is no doubt NZ Inc has suffered, with those in the hospitality and tourism sectors particularly taking a hit, especially in Auckland. We are also seeing the continuing bifurcation of the ‘haves’ and ‘have-nots’, a troubling trend that is creating interesting dynamics in the realm of in-store purchase drivers. However, in 2022 we can expect recovery, albeit a more cautiously-led one than the bounce experienced after our 2021 Covid dip. With this in mind, my three market dynamics to embrace for the coming year are:

1. Proactive price management Most economists predict inflation will remain high throughout 2022. In the world of FMCG, this is fueled by on-going supply chain challenges (an issue unlikely to be resolved until 2023), rising wages and, as a consequence, increasing input costs. Consumers are expected to become savvier over the next 12 months, as soaring interest rates herald more cautious spending. It will therefore be critical to proactively manage pricing to avoid or minimise significant margin erosion. Take a good look at pack/price architecture to establish where your business may be leaving value on the table. Think about where your products are

Digital purchasing continues to accelerate, and the drift to online grocery shopping in New Zealand is showing no signs of slowing, with penetration as high as 13% at Countdown. A significant number of spending missions are also starting online, even if they don’t end there. It is therefore critical to ensure your omnichannel game is tight. How do your products and brands feature on key retail sites? Is your digital shelf as strong as your physical shelf? Do your product descriptions easily direct consumers to your products first? Are differentiators, such as hypoallergenic or gluten-free, clearly signalled? What is your online investment strategy? Consider whether it is time for an eCommerce health check.

3. Enduring appeal of flexible working and convenience Just as the move to online shopping is not going to be reversed, the significant shifts we have made to our flexible working arrangements are here to stay. This will have a lasting impact on what is in the grocery basket each week. Consumers are likely to eat more meals at home on weekdays, particularly lunches and breakfasts, meaning those who help create convenient and tasty meal solutions could unlock real growth. Expect a continued appetite for bringing the café experience home – with resulting expansion in products like premium coffee, including pods, as well as key bakery items. Add to this the on-going desire for more convenient options that create precious time in hectic lives, and we can look forward to continued growth and innovation around evening meal solutions, as well as home-health based products that deliver multiple benefits. Clearly 2022 will be far from straightforward. However, as we learn to live and trade in the shadow of a pandemic, we also need to be ready for the short and long term impacts it has brought. So, get on top of your price management program, invest in the digital journey, and respond to consumer shifts, such as the move to flexible working. With the right approach, we can head into the coming months with optimism. FMCG BUSINESS - LEADERS FORUM 2022

[ FMCG Leaders Forum ]

OUR JOURNEY TOWARDS BECOMING ONE OF THE MOST CUSTOMER-DRIVEN RETAILERS IN THE WORLD

Chris Quin CEO Foodstuffs North Island

2021 was tough for all in our industry and while there have been some huge challenges, we’ve been proud and privileged to play a role in supporting New Zealanders. From keeping our teams and customers safe, to protecting our supply chain, keeping stock on-shelf, and supporting the communities we serve through our social promises - as we all dealt with the arrival of Delta. I think 2022 is likely to be another big year for New Zealanders as we find ways to live with the constantly evolving COVID-19 situation in what I’ve heard pretty accurately described as an ongoing game of Snakes & Ladders. What’s struck me over the last couple of years is the extraordinary drive and resilience of the industry and our co-operative - and at the heart of this is 24,000 extraordinary people all playing their part. Not only keeping us in food and grocery essentials during 2021 but achieving so much more than that. In 2022 we’ll continue to constructively engage with the Commerce Commission and industry throughout their enquiry into the grocery sector. In our submission on the draft market study report, we outlined a substantial Action Plan that we believe will collectively drive better outcomes for customers and improve the competitive landscape. This Action Plan is focused on three core areas: meaningfully improving value for customers, developing a grocery code for the industry and improving the competitive landscape. While many of our challenges are outside of the co-op’s control, we’ll maintain laser focus on what we can, by continuing our dedication and 14

FMCG BUSINESS - LEADERS FORUM 2022

“2022 IS LIKELY TO BE ANOTHER BIG YEAR FOR NEW ZEALANDERS AS WE FIND WAYS TO LIVE WITH THE CONSTANTLY EVOLVING COVID-19 SITUATION” journey towards becoming one of the most customer driven retailers in the world: • I’m determined that we start every conversation with facts, insight and understanding about our shoppers, so we deliver for them each time. • We’ll make meaningful change, and we’ll make it faster. Every week we have more than 2.1million customer visits across five generations of New Zealanders who come through our stores, and their needs are changing faster than ever before, we need to anticipate and commit. • We’ll be more digitally driven. Our shoppers’ behaviour has changed and the shopping journey more often than not starts outside the store doors in 2022, so we need to make sure we’re set up to meet their needs online, as well as in-store. There are a few very cool online innovations on the cards in 2022, but I can’t share the detail right now. Sorry! • We’ll work to bring the best out of our 25,000 Foodies. COVID-19 has proven that we have the strongest retail team possible, they are the key to reaching our aspirations and goals. We’ll also be keeping and building on our commitment to be HereforNZ through our social promises: supporting communities to thrive, providing access to healthy affordable food, meaningful work for our people and being leaders in sustainability. It’s our 100th birthday in 2022, I’m looking forward to it, I’m keen to get back to doing more of the things we love. It’s a momentous occasion to turn 100 and I want to thank our hard-working teams who helped us reach this incredible milestone. Whatever comes our way I’m pretty sure 2022 will be a great one to remember!

[ FMCG Leaders Forum ]

PARTNERSHIPS AND CUSTOMERS WILL CONTINUE TO SHAPE OUR JOURNEY

Mary Devine CEO Foodstuffs South Island

There is no doubt the past two years have been challenging for the retail sector. No matter the category, we have all adapted our retail businesses to accommodate the changing requirements of our customers and the way they want to shop whilst managing the complexity of supply chain disruptions. The accelerator through the pandemic has been ecommerce. However, as we move forward the emphasis will become one of omni-channel retailing and data driven insights to provide exceptional customer experiences in an increasingly digital-first world. When I reflect on this for Foodstuffs South Island there are two key themes that come to the forefront that will continue to shape our journey into 2022 – ‘Partnerships’ and ‘Customers’. Partnerships with suppliers, whilst always integral to the success for FSSI, will move to another level. Working together will be essential to handle the ongoing supply chain challenges brought about by Covid-19 that we will continue to face through 2022. How we navigate escalating costs and the impact of inflation whilst ensuring we offer value for our customers will also require commitment across the supply chain. Secondly, the opportunity to integrate customer rich data to inform and guide our supply partners on optimising ranging decisions will be beneficial for all. My love of retail is underpinned by a desire to provide great customer

experiences. This will increasingly come to the fore in the years ahead. Whilst FSSI is early on the journey of on-line retailing, this will accelerate through 2022 as we focus on truly providing an omni-channel experience for our customers. Understanding the customer journey and how to be relevant in the moments that matter will be pivotal. Bricks and mortar retail remains integral, but the in-store experience will certainly be more digital than it is now. Providing experiences to differentiate is key, and we know there will likely be continued focus on healthier eating, convenient meal solutions, and supporting local. I am excited about the numerous innovative solutions that are currently in play for the Foodstuffs portfolio of brands. Customer insights will increasingly inform our brand execution across channels to enhance personalisation. The building blocks are well advanced, and I’m genuinely excited about the positive impact that this will have for our customers throughout 2022. Personally, I also reflect on the importance of leadership in sustainability. As a retailer we have a key role to play, and it has been pleasing to hear in the supplier briefings to date the level of activity and ownership at play. As a leading South Island business, we know sustainability leadership is imperative and I look forward to an active involvement to further advance this agenda for the business. At the heart of all retail businesses in this complex environment is our people. The resilience shown by our team over the past year has been truly heartening. The continued success of FSSI will be built on the talent and empowerment of our people and I very much look forward to being part of the team as we head into 2022.

“WORKING TOGETHER WILL BE ESSENTIAL TO HANDLE THE ONGOING SUPPLY CHAIN CHALLENGES BROUGHT ABOUT BY COVID-19”

FMCG BUSINESS - LEADERS FORUM 2022

[ FMCG Leaders Forum ]

TIME TO UP YOUR GLOBAL IP STRATEGY FOR 2022? The FMCG industry provides a challenging market when it comes to Intellectual Property Rights. As it is one of the most crowded and competitive markets, it has become crucial for FMCG companies to use IP Rights intelligently to achieve sustainable growth, profitability, and competitiveness. We have seen a firm shift from reacting to the COVID-19 pandemic crisis to reinventing products and services as a result. FMCG companies have also been forced to be innovative to keep up with changing consumer demands. From an IP point Associate of view, that means several James & Wells steps must be taken to prepare companies dealing with these changes. The first step requires the organisation to identify, capture, organise and protect their IP, such as trademarks, patents, designs and trade secrets. Having a professional IP Audit is extremely useful, especially where IP has been developed haphazardly over time. This protection of IP Rights is not only good risk and compliance management, it can also help set the tone from the top down, creating a positive “IP culture” for the organisation. In the new product development phase, if there is anything novel being created from scratch, then it pays to discuss this with an IP professional before anything is disclosed further within the company or promoted. This is where non-disclosure agreements and confidentiality clauses within staff employment agreements come in handy, making sure that employees who are working on any confidential new product development don’t subsequently share this knowledge, or outsiders

must use and exploit. It pays to consider the overall brand strategy early on – making sure the trade mark is in fact available to use in the markets where you intend on promoting it, and then taking targeted steps to ensuring you can protect and legally own the trade mark in those markets. Companies considering exporting are well advised to develop a global IP strategy that dovetails with their business strategy. Often businesses try to register in many different jurisdictions to secure their trade mark reactively, or without actually considering how this fits within the long term business strategy. Being strategic about the where and how can not only save you money, it can provide you with a better and more expedient outcome. Free trade agreements between New Zealand, the UK and Europe are likely to bring a positive spin for exporters beyond 2022, so it pays for consumer goods companies to consider these markets now in their global IP strategy. A UK trade mark registration protects your rights in England, Wales, Scotland and Northern Ireland. An EU trade mark registration protects your rights in the 27 member countries of the EU (excluding the UK), making it the mark of choice for many businesses who currently trade abroad, or who plan to expand into Europe. Both UK and EU Trademarks are registered on a first come first served basis, and in a straightforward scenario can take approximately 5-6 months to register in the UK, or longer in the case of the EU. Although trade marks are largely handled in the same way under both systems, there are some differences, which can be important from a strategy viewpoint, so it pays to seek the advice of an IP professional when considering this. Overall, 2022 should be the year that you properly consider the strategy behind your IP protection, so that you can take advantage of future opportunities as they arise and enable good risk management.

Stephanie Hadley

“2022 SHOULD BE THE YEAR THAT YOU PROPERLY CONSIDER THE STRATEGY BEHIND YOUR IP PROTECTION”

who are also working on the project (such as a contract manufacturer), don’t do the same. In the commercialisation and marketing phase, a product’s brand is generally the most visible and long-lasting IP right that companies 16

FMCG BUSINESS - LEADERS FORUM 2022

IP protection, simplified. We’ve been championing innovation since 1979. A safe pair of hands delivering outstanding results.

m wells.co jamesandwells.com mesand www.ja

[ FMCG Leaders Forum ]

INNOVATION AND SUSTAINABILITY - MEETING OUR CUSTOMERS WHERE THEY ARE “WE’VE BECOME MORE AGILE AND ADAPTABLE AS A BUSINESS AND HAVE DEVELOPED EVEN STRONGER RELATIONSHIPS WITH OUR SUPPLIERS AND SUPPLY CHAIN PARTNERS”

Spencer Sonn Managing Director Countdown Thanks to COVID-19, it’s been a challenging couple of years for Kiwis. Supermarkets have been at the forefront of not only providing consistency, but often the only form of social interaction for many people during uncertain times. While keeping our team and customers safe in our stores and navigating global freight and supply chain challenges have been a priority, we haven’t taken our eye off the ball when it comes to planning for the future. Whether it’s looking at what’s important to our customers, understanding emerging local and global food trends, meeting our 2025 Sustainability Commitments, and continuing to innovate - we’ve continued to focus on what needs to be done to meet the needs of a changing Aotearoa. This year we celebrate the 25th birthday of Countdown’s online shopping service, which first launched back in 1996. What started with customers placing their order by floppy disc has since become a very different proposition! Our digital economy is driving a huge demand for the ease and efficiency of online shopping. To meet that growing demand we’re continually investing in our digital and e-commerce capabilities and have been actively expanding our network capacity with dedicated eStores in Auckland, Wellington and Christchurch. This additional infrastructure investment will ensure we can continue to provide a great online shopping experience well into the future. Kiwis are increasingly wanting to make their shopping choices as convenient and also as sustainable as possible. Since launching our 2025 Sustainability Plan in late 2020, we’re continuing to take bold steps towards meeting the ambitious commitments we’ve set out to achieve, which include further reducing our emissions, sending zero food waste to landfill from our stores and making sure our own brand 18

FMCG BUSINESS - LEADERS FORUM 2022

product packaging is recyclable or reusable by 2025. In our own brand products alone, we removed more than 16 tonnes of virgin plastic packaging, reduced our emissions by 9%, and diverted more than 7,000 tonnes of food waste from landfill in the last financial year. As much as we’ve done, we know there is much more to do and so our work will continue throughout 2022. But the focus on sustainability doesn’t stop with our own efforts we’re also seeing our customers’ lifestyles reflected more broadly in their supermarket shopping, with the desire to make healthier and more sustainable choices intersecting with the need for convenience and ‘one stop’ shopping. To meet this demand in 2022, we’ll be growing some of our lifestyle offerings including: • Expanded ranges in home improvement, gardencare and homewares and introducing home fitness equipment. • Making more healthy and convenient choices available by expanding our range of healthy pre-prepared meals and meal kits, sugar-free beverages, and vegan and vegetarian ranges. • Continuing to grow the range of good quality options available on our shelves in our plant-based categories, like milks, yoghurts and meat alternatives as we see more of our customers adopt planet-friendly diets. • Expanding our own brand range of products, which were recently ranked the healthiest in Australia for the third year in a row and display a health star rating making it easier for Kiwis to make healthier choices. • Extending our cleaning and laundry concentrates range to drive a reduction in the need for plastic packaging and the unnecessary global freighting of water. • We’ll also continue to improve our fresh offering through the opening of a new fresh food distribution centre at Wiri in mid-2022. This will bring all of our produce operations into one location with a Green Star rated, state of the art temperature-controlled distribution centre, produce packhouse, ripening rooms and space to receive and store imports, providing the best care and quality for our growers and customers. Thanks to the experience we’ve gained over the last two years, we’ve become more agile and adaptable as a business and have developed even stronger relationships with our suppliers and supply chain partners. This year may not be the end of global uncertainty, but we’re more than prepared to tackle any COVID challenges that come our way and ready to meet the needs of Kiwis in 2022 and beyond.

[ FMCG Leaders Forum ]

NAVIGATING THE INCREASED DEMANDS ON OUR CONSUMERS

Lance Dobson Market Lead NielsenIQ NZ

As 2021 came to a close, the impact of the pandemic on the FMCG industry in New Zealand led to the emergence of new consumer trends and dynamics. As we enter the new year, consumers will continue to face pressure on spending owing to continued uncertainty and a high inflationary landscape. These factors combined indicate that challenges for suppliers and retailers will continue through the coming months. In NielsenIQ’s latest Retail Barometer survey, 60% of suppliers indicated they expect business conditions to deteriorate in 2022, due to a high cost of raw materials and flow of shipping - concerns that are also echoed globally. In 2021 FMCG sales across Grocery, Traditional Liquor, Oil & Convenience and Pharmacy hit nearly $21bn, an increase of $2.3bn vs 2 years ago, driven by COVID lockdowns and channel switching. This growth is two-fold, whilst we are seeing increased volumes, price inflation as we enter a new high inflationary environment, leads to implications on both short and long-term pricing decisions. Our latest Homescan Panel survey tells us that shoppers’ key motivators of store choice are value for money, low prices, good deals and promotions. Additionally, in the recent COVID environment, shoppers are maximizing each trip to the store, so stores having a good range, what shoppers want in stock and easy to find products as they look for ease and convenience become more important. These motivators offer several new consumer-led implications for growth, including a move to online and the economic polarisation of shoppers. The digital revolution and move to online is shifting the retailer landscape. Online is driving significant growth to the overall market and

is contributing 50% of overall growth. Habitual online shoppers are also switching more of their spend online, 61% of their supermarket spend is now online, +7 pts from last year. As shoppers become more engaged with online shopping, they will become smarter, looking for specific products and comparing price points making it a more competitive space. Key to ongoing loyalty is a platform that satisfies shoppers’ needs by providing the best experience possible. Retailer investments into their online offering becomes critical in achieving that shopper satisfaction. The economic polarisation of shoppers has seen the forming of distinct groups of Insulated and Constrained consumers with new implications for growth. We are seeing more people affected by Covid with 27% of households now experiencing a worsening financial situation as a direct result of the pandemic. These ‘Newly Constrained’ households are consciously watching their spending and are pivoting into new ways to look after themselves with an increased focus on health and wellness, as they are most likely to have demands on their physical and mental health. Insulated Consumers make up 36% of households in NZ, with 19% telling us they are spending freely and have increased their spend on indulgent items. The insulated consumer group will pay a premium for products with compelling benefits or features, especially as many are replacing out of home experiences by replicating those occasions or entertaining at home. In closing, some recommendations for engaging your consumers when planning for 2022 and beyond. • Relieve pressure points for shoppers by setting clear strategies around pricing, promotions and pack price architecture. • Provide easy and affordable ways to be healthy to ease the pressures on constrained households. • Clearly articulate the features and benefits of premium products, especially around occasions and meal ideas. • Both retailers and brand owners should continue to drive growth for online shopping by providing the best experience possible, reliability and convenience cues are most important for shoppers. FMCG BUSINESS - LEADERS FORUM 2022

[ FMCG Leaders Forum ]

WHAT’S YOUR STORY? “THERE IS A CRAFT IN MAKING YOUR BRAND STORY ONE THAT PEOPLE WANT TO FOLLOW.”

FMCG BUSINESS - LEADERS FORUM 2022

[ FMCG Leaders Forum ]

Ingredients of a great story Eminent screenplay writer Robert McKee has mapped out the essential ingredients that make a compelling story. Adapting some of these principles, good brand stories need to consider:

Lew Bentley Lew Bentley Head of Strategy

Element

Definition

For Example

Genre

What is the type of story your brand is telling?

• Succeeding in difficult circumstances • Taking control of your family’s wellbeing • Indulging in a passion we share

Protagonist

Who is your brand as a 3-dimensional person; an archetype with living human values and its own distinct personality?

• A common person in touch with the realities of making ends meet • A trusted protector keeping the family safe • A fanatical challenger taking quality to the next level

Quest

What is the journey your brand is on?

• To make family budgets go further • To remove harm from everyday living with natural products • To seek perfection in what we make

Arc

How is your brand evolving over time?

• What is the backstory of your brand’s origin and evolution over the years? • What is your vision for the future?

Inciting incidents

How does your brand respond to events occurring in the market, or what is your brand doing proactively to create change

• How is your brand helping people cope with the COVID pandemic? • How is your brand helping people celebrate Christmas? • What has your brand done recently to get people excited?

Head of Strategy Shopper Marketing Agency Energi Shopper Marketing Agency Energi

Over the many years I’ve spent in the marketing world I’ve learnt that there is a lot of new money for old rope. Every few years a shiny new thing arrives that carries big promises of a break-through in thinking that supposedly changes the world. People-centred design was a revolution in its telling that claimed to actually consider people in the design of things. Scratch the surface and you find good old qualitative research with Post-It notes. There was a huge kerfuffle in brand strategy when people discovered Simon Sinek’s TED talk on his Golden Circles model. Grounding your brand on a “Why?”, or brand purpose, suddenly raised cries of “eureka!”. How had businesses managed to survive without knowing why they are there in the first place? There is also the ongoing debate about the importance of creativity in communication. To my way of thinking this is a bit like the axiomatic argument that food is better if it tastes good. Another topic du jour that has grown in prominence in recent times is storytelling. Two main practical drivers have swept storytelling to prominence:

1. Content marketing The growth in content requirements as marketers have increased their investment in digital marketing. Websites, blogs, customer emails and social media all need content to fill their posts with.

2. Differentiation With the proliferation of competition in most categories it is harder and harder to achieve sustainable differentiation with products. However, one thing that a brand can own is its story. There is also a deeper, more fundamental role that brand storytelling plays in marketing. Pretty much all products, whether they are FMCG, durables or services tend to be inert per se. They are things. Marketing’s job is to create demand by making those things desirable to people. To do this we use brands as a way to attach human values to products in order to make them more relatable and appealing. This works because human behaviour is driven mostly by instincts and emotions rather than cold rational thought. People are hard-wired to relate empathetically to stories about emotions and the human experience.

Consequently, a brand story is a means of wrapping human values up in an ownable narrative designed to cultivate sustainable attraction. In this way: A product + human values in the form of a compelling brand story = a more desirable product = the source of enduring demand = something worth paying a premium for. Whittaker’s is a great story of pioneering dedication to chocolate perfection that trumps Cadbury’s global giant status. Lewis Road Creamery has been satisfying foodies with beautiful products made the way they are meant to be made - before industrial compromise took over. Essano is a great success story of providing premium pharmacy and salon products at grocery prices. There is a craft in making your brand story one that people want to follow. It is not just a matter of haranguing people about your product and its features. We’ve all met people like that. Great brand stories draw you in to a tale of passionately believing in something and pursuing it with purpose, authenticity and flair. They are stories about brands you want to have in your life and what you choose to prefer over alternatives. Great brand stories that you buy into leave a residue on your own story as a person. What do the brands you love say about you? FMCG BUSINESS - LEADERS FORUM 2022

[ FMCG Leaders Forum ]

UNDERSTANDING ‘PEAK MEAT’ AND SUSTAINABLE DINING

Catherine Beard Director Advocacy Business New Zealand

While New Zealand looks to be reaching peak meat consumption, a more conscious kind of meat-eater is on the rise. The impact of these two factors is important to understand in 2022 and beyond. Countries the world over have been in a rolling state of lockdown since 2020, and New Zealand is no longer the exception. The twenties are off to a rather introspective start so far. People have had their day-to-day lives profoundly disrupted, allowing themselves to slow down a bit and really consider the impact their consumer habits are having. The trend of “reducetarianism” was alive well before the pandemic, but since we first learned of Covid-19, we’ve seen increased sentiment toward more sustainable dining practices. The pandemic shared the spotlight with another top story in 2021 – climate change (or more specifically climate action). As such, sustainability is on consumers’ minds when choosing what to eat. Consumers are branching out in favour of more adventurous and often more sustainable options that not only taste good, but leave their conscience feeling lighter too. You may have heard more people talking about the likes of “meatless Mondays”, which are becoming more popular among the traditional meat-and-three-veg crowd. There 22

FMCG BUSINESS - LEADERS FORUM 2022

are signs that point to New Zealand bucking global trends and achieving peak-meat consumption in the near future. Our consumption habits in the 21st century show Kiwis decreased their average meat intake by about 10 kilos between 2000 and 2019. New Zealand appears to be one of few countries trending this way currently (other western countries include Canada and Switzerland), but as the world looks toward more sustainable ways of living, other developed countries could follow suit. The rise of alternative sources of protein is making the move to a meatless diet easier than before. We are seeing many more options and substitutes in the supermarket chiller. These come in the form of plant-based, lab grown or (to a lesser extent) novel sources like crickets and other insects. So, what might this all mean for our meat producers and exporters? With changing diets and more innovation in meat and its substitutes – it does mean New Zealand’s industry faces new competition. But I believe there will continue to be a strong market for New Zealand grass-fed meat going forward. We are one of the most greenhouse gas-efficient producers of red meat in the world, which gives us an edge in a market where consumers are conscious of what and where they get their protein from. Relative to our international competitors, New Zealand producers do a great job when it comes to sustainable practices and reducing carbon. It’s also important to remember that while New Zealand is one of few countries nearing peak consumption, some countries’ meat-eating habits are still growing. Differences in the diets of people from developed and developing nations make this clear. While there may be a decline in the consumption of meat in developed countries, we understand meat consumption increases in developing nations as their middle class grows. So, if you are a New Zealand meat producer or exporter with sustainable practices in place, keep doing what you’re doing. There will always be a market for the real thing – it’s may just be a matter of putting our greenest foot forward.

The rise of alternative sources of protein is making the move to a meatless diet easier than before

“THE PANDEMIC SHARED THE SPOTLIGHT WITH ANOTHER TOP STORY IN 2021 – CLIMATE CHANGE”

MARKETING SUMMIT Ellerslie Racecourse, Auckland

NETW ES DA

STAY AHEAD OF THE GAME IN NZ’S FAST-MOVING GROCERY AND RETAIL SECTORS Elevate your FMCG brand with presentations from recognised industry experts, Q&A panel discussions and valuable networking opportunities. Hear from key speakers and industry experts including

KATHERINE RICH New Zealand Food and Grocery Council

MORGAN MCCANN New World Foodstuffs North Island

LARISSA WATSON NielsenIQ * Program subject to change

Rescheduled date

Thursday 1st September 2022 Ellerslie Events Centre, Auckland