NEWSLETTER: 12 APRIL 2019

A Time of Turmoil and Change

What a month of turmoil and change we had in March.

First there was the turmoil of the unthinkable horror of the Christchurch mosque attacks. I know we were all shocked at what happened, but it was great to see our FMCG community, banding together in time of need (as it did after the Christchurch earthquakes). Thanks to members who contributed product, and to our FGC leaders Tim Deane our Chair, Ali Hamza, GM of Bluebird/Pepsico, and Imraan Ali, Country Manager of SC Johnson, for their guidance and leadership. Thanks also to everyone else for helping show the FMCG sector’s solidarity. There’s something special about being a Kiwi that shines through in times such as these.

Change came in the form of Tim Deane’s resignation as FGC Chair, and the appointment of Mike Pretty, MD of Kraft Heinz, to replace him. Tim, former MD of Goodman Fielder, is off to a position outside the sector, though not too far – as executive general manager business banking at ASB. It was a privilege to work with Tim, who put his own stamp on the role! I’m delighted Mike will take the Chair, after nearly two years on the FGC Board. He brings a

wealth of expertise from his roles. He’s very passionate about producing great New Zealand food, and is an active advocate for local growers. Tim now replaces Veronique Cremades, former Country Manager of Nestle, as Immediate-Past Chair.

A reminder that registrations for the Half Yearly Meeting & AGM at Eden Park on 16 May are open on the home page of the website. Speakers will be the

Minister of Commerce and Consumer Affairs Hon Kris Faafoi, Murray River Organics (Australia) Managing Director and CEO Valentina Tripp, and My Food Bag CEO Kevin Bowler.

And don’t forget to lock away the date for the annual conference in Melbourne: 6-8 November.

FGC Newsletter: 12 April

FGC Event: Special Leadership Workshop on H&S

The Health & Safety Working Group is hosting a free leadership workshop in Auckland on 9 May for FMCG company leaders. The guest speaker will be Peter Reidy, CEO of Fletcher Construction and former CEO of KiwiRail, who will talk about high performance teams and his experience of positively shifting the H&S culture at KiwiRail. He's proud of the workplace culture he's leaving behind at KiwiRail, after adopting Air NZ’s high performance, high engagement strategy with great results. "It's

all about leaders letting go and your frontline workers taking ownership of problems,” he says. Peter will be joined by Natalie Davis, CEO of Woolworths NZ, who will share her view on safety culture. This event will be interactive, where attendees will network with other CEOs/GMs, Supply Chain and Sales leaders and hopefully walk away with some great ideas to improve H&S culture. The session will be facilitated by Philip Voss, from Leading Safety, and is sponsored by Woolworths. While the session is aimed primarily at CEOs and GMs, they’re welcome to take their head of Supply Chain, Sales or head of Health & Safety. The venue is the Holiday Inn Auckland Airport (2 Ascot Rd, Mangere), 7:30am for 8am start, finish at 11:30. It’s free, and those registering should email Gerry Lynch.

Changes Make Safe In Store Pass More Effective

Changes have been made to the Safe In Store Pass to make it easier to use and more effective for merchandisers. The changes will make the Pass even easier to use and greater integration into future developments from both suppliers and retailers. The Pass content has been reviewed and revised, ensuring content reflects the learning needs of users and addresses the changing health and safety pressures in store. Content is changing to reflect legislative amendments too. The Pass now has a barcode on the front to prepare it for when stores are able to scan into their visitor registration systems. Planning for these systems is under way and once implemented will significantly speed up the arrival process at stores. The Safe In Store Pass is now integrated with two of New Zealand's major grocery CRMs: both Opmetrix and Insightful.mobi have a full integration with Pass, significantly improving the efficiency of user compliance for customers of these systems. Inquiries are welcome from other CRMs wanting integration, as are suggestions for improvements from supplier health and safety managers. For further information and to register for the Safe In Store Pass, go to the website.

FGC Newsletter: 12 April

FGC Event: Dr Food at Villa Maria, 3 May

A must for those who want an update on food, grocery and supermarket trends around the world. This sold out last year so be in quick!

FGC will be hosting international food marketing expert Professor David Hughes at a morning event in Auckland on 3 May. Prof Hughes works closely with senior management of food and beverage firms around the world on business strategy development and with governments on food policy formulation, and offers the latest insights into food trends. The event runs from 9am-11am, and registrations are open on the FGC website.

Salary Survey for Food Tech Staff

Food companies are invited to participate in a survey of food industry technical staff salaries, and will later get free access access to the data from it. The survey has been organised by the Institute of Food Science & Technology (NZIFST), which sees it as a valuable resource for the wider food industry and for its members in assessing the value of

technical roles within the industry. Small to medium food companies often struggle to access relevant salary information due to the high cost of existing surveys. Participants will receive a complimentary comprehensive remuneration report in the middle of the year, while NZIFST members will have access to the broader survey results on the NZIFST website. Participating companies will be asked for data by role, age, experience, highest qualification, base salary, add-ons, bonuses. The survey will include positions in technical (product development, nutrition, sensory, packaging, process development), quality (QA, QC, laboratory, compliance, food safety), environmental, health & safety, and engineering. Members wishing to participate should register their interest by emailing survey organisers Lawson Williams. The survey will be distributed to participants during April.

FGC Fronts Select Committee on Food Waste

Last month, FGC made an oral submission to Parliament’s Environment Select Committee, which is investigating food waste in New Zealand. The submission, presented by Policy & Regulatory Director Carole Inkster, emphasised

the work being done by member companies to minimise waste, and followed a written submission last year. Carole pointed out that though FGC does not collect data on food waste, many members are actively involved in initiatives to address the issue of reducing their waste footprint, including donating food to organisations such as Auckland City Mission, KiwiHarvest, Kaibosh, and the Salvation Army, and working with processors to ensure waste is put to other good use or recycled. Read the full written submission on FGC’s website.

FGC Newsletter: 12 April

Community: Sistema Donates to Decile 1 Schools

Member Sistema Plastics recently launched an initiative called the Sistema School Starter Programme to help new entrants who are going without lunch. The nationwide programme will see 8319 new entrants at 256 low decile schools get a lunchbox and drink bottle. The aim is also to encourage healthy, waste-free lunches that are becoming a standard at many schools. Sistema CEO Drew Muirhead (pictured back at school) says starting school can be an exciting but challenging time for children and their families. “Statistics tell us one in four Kiwi kids are living in poverty and thousands of our most vulnerable are being sent to school without lunch every day. We want the Sistema School Starter Programme to have a positive impact by encouraging kids to eat healthy lunches. Sistema comes from humble beginnings in small-town New Zealand and has grown into the global business we are today. We have a passion for driving the future of NZ, and an important part of that is making sure the next generation is equipped with the basics to go on to succeed in life.”

Mandatory Sunscreen Standards?

FGC recently responded to questions around whether the Government should implement mandatory sunscreen standards. Katherine Rich told Supermarket News: “A mandatory standard for sunscreens would be a good idea if overseen by the Environmental Protection Agency. It oversees the Cosmetics Standard. It would a regulatory disaster for either Medsafe or the Ministry of Health to

oversee them. Their role is to regulate medicines and so they tend to view all regulation through that lens. The last time they regulated grocery products like toothpaste, mouthwashes and anti-dandruff shampoos their overregulation was so incredibly expensive and bureaucratic it meant that many New Zealand consumers did not get access to many new variants available overseas because it was simply too costly to launch in New Zealand. This changed once these products were shifted from the oversight of Medsafe to the EPA. We need to remember we are a marketplace smaller than Sydney. The EPA is best suited to oversee this, and it would make sense to do this through the Cosmetics Standard.”

FGC Members Strike Big Gold

Congratulations to FGC members Fonterra Brands, Lewis Road Creamery, and Goodman Fielder for scoring golds at the New Zealand Champions of Cheese Awards. Fonterra won 24 golds and 20 silver or bronze medals. Also to Villa Maria Estate for winning 12 golds and three trophies at the Royal Easter Show Wine Awards across a spectrum of varietals – an impressive 20% of the total gold medal count!

FGC Newsletter: 12 April

Talent Working Group Vision for 2019

FGC’s Talent Working Group has released its vision statement for the year, reinforcing that plans to ensure FMCG is the industry of choice in New Zealand include the Internship Programme and Auckland Uni Expo, networking events, and with a big emphasis on diversity.

Industry Relations Working Group Workplan

FGC’s Industry Relations Working Group has finalised its workplan for the year, and it shows just how closely and in how much detail it is working with Foodstuffs and Woolworths NZ on issues vital to suppliers.

FGC Newsletter: 12 April

MPI Seeks Feedback on a Range of Issues

Consolidated and revised notice exempting food for export from domestic compositional requirements: A proposed consolidation and update of four notices: 1) Animal Products (Glycerol Esters of Fatty Acids in Milk and Cream Based Formulations – Food Standards Exemption) Notice 2007; 2) Animal Products Notice: Dairy Products – Food Standards Exemption – 6 December 2017; 3) Food Notice: Food Standards Exemption Fonterra Limited – 7 November 2018; 4) Food Notice: Dairy Based Products – Food Standards Exemption No. 5 – 20 November 2018. See the consultation document on the MPI website. Consultation closes on 3 May.

Organic Production Rules: Proposed requirements for organic production under the MPI Official Organic Assurance Programme, for exporting. This consultation is independent from work on a new regulatory regime for organics. MPI wants to know if the requirements are easy to follow and understand, and if anything needs more detail or is missing. The requirements for organic operators under the programme are to be in a single document called Organic Export Requirement: Operator Requirements. Details are on the MPI website. Consultation closes on 10 May.

Proposed Changes to Animal Products Notice: MPI has drafted a new Notice and associated forms for Animal Products for Human Consumption. It’s asking questions around clarity of the consolidation, requirements for harvesting wild birds, any corrections needed for any content of the Notice, any other aspects that should be included in the Notice, and whether more guidance boxes are needed. It says specifications for Products Intended for Human Consumption applies to operators and

other specified persons supplying and processing animal product for human consumption under the Animal Products Act 1999. The current Notice requires technical updates and an overhaul in structure. The consultation document, draft notice, background documents and supplier statements are on the MPI website. The consultation closes on 27 May.

Warning Over Trademark Approaches

Some members are reporting fresh approaches from a company claiming to be their trademark representative or an official organisation, and warn others to be alert to this. Cottonsoft sent us a copy of a letter from PTMO Limited that claims their trademark was about to expire and may be lost if not renewed in time. The letter cites the cost of $1200 for one trademark class and $650 for additional classes. In 2016, PTMO received a warning from the Commerce Commission for similar activity – “for sending a notice to trademark holders that is likely to breach the Fair Trading Act 2003 and mislead trademark holders.” See the Commerce Commission notice here.

FGC Newsletter: 12 April

CGF Conference to Tackle Growth through New Retail

Growth Through New Retail is the theme for this year’s Consumer Goods Forum’s conference, to be held in Vancouver in June. The forum says the consumer goods industry has never experienced disruption at a faster pace than now, and is

“facing a precipice and business as usual is no longer an option. New technologies, changing consumer demands and digital-first companies are ensuring turbulence from all sides. As such, we can no longer talk about individual solutions in isolation.” In response, the speaker line-up features leaders from some of the world’s big consumer goods companies who will be presenting and leading discussions on a wide range of topics. Session titles include Profitable Growth Through Precision in Digital Transformation; It’s Time to Work Together and End Plastic Pollution; Waste Revolution - An AI Enabled Intelligent Supply Chain Helps you Conquer Waste; How Will You Master the New Consumer Ecosystem? The future is about agile, demand-responsive ecosystems; Decoding Generation Y, Attract Them to Your Brand, Excite Them in the Store; The Rise of Delivery and How Food Companies Need to Adapt; The Evolution of Retail in a Digital Age: How to Provide Consumers with a Seamless Experience; The Future of Retail Workforce. More information is available on the CGF website.

Allergen Bureau Holds Third Conference in May

The Allergen Bureau’s 3rd Biennial Food Allergen Management Symposium will be held in Melbourne from 13-16 May. It offers a full three-day symposium reaffirming the concepts of ’risk communication’, science of thresholds, reference doses, and their application. Also covered will be updates on regulation

and policy, food fraud insights, frontiers in treatment and clinical research, the latest on detection methodologies from the laboratories. Register on their website.

Conference on Human Variability in Response to Food, Nutrients

A reminder about this conference in Sydney on 14-15 May. It’s organised by the International Life Sciences Institute, the Australian Commonwealth Scientific and Industrial Research Organisation, and the University of South Australia and will explore the nature of individual human variation in response to food choice and nutrient intake, and how that may initiate a new era of

opportunity for personalised nutrition. Attendees will hear leading global and regional experts present the latest science, discuss business implications, and consider the regulatory environment for personalised nutrition with a focus on improved health and performance outcomes. Further information and registration are on the conference website.

FGC Newsletter: 12 April

Employment Relations Changes

April 1 saw big changes to employment relations legislation, from minimum wage increases and domestic violence, to KiwiSaver.

Chief among the minimum wage changes are increases to $17.70 per hour for workers paid by the hour or by piece work, $141.60 per day for those paid by the day, $708 paid weekly, and $1,416 paid fortnightly. The minimum starting-out rate (80% of the adult rate) for workers not involved in training or supervision who are aged 16, 17 and have not worked continuously for the employer for a period of 6 months, or aged 18 and 19 and have spent 6 months on a benefit and not previously worked 6 months for an employer increases to $14.60 per hour, $113.28 per day, $556.40 per week and $1,132.80 per fortnight in all other cases

The Domestic Violence – Victims Protection Act amends the Employment Relations Act to allow workers affected by domestic violence (including those living with a child affected by domestic violence) to ask for a short-term variation in their working arrangements (2 months or shorter). Workers can subsequently ask for their short-term variation to be extended or made permanent. Employers must respond within 10 working days of receiving a request but can ask for proof that the worker (or child) is affected by domestic violence and have a right of refusal. Grounds for refusal are specified. If an employer fails to respond as required, the matter will be treated as an employment relationship problem. It also amends the Holidays Act to provide any worker affected by domestic violence (including a worker living with a child affected by domestic violence) with up to 10 days’ paid domestic violence leave. To be eligible, an employee must have worked continuously for the employer for 6 months for an average of 10 hours a week, working at least 1 hour each week and 40 in each month. Leave may be taken sooner by agreement. Payment is average daily pay or relevant daily pay. Leave can be requested whether the violence is currently occurring or occurred at some earlier time, even if that was before the person affected came to work for the employer. The 10 days’ domestic violence leave is available only within each 12-month period and can’t be carried over to the following 12 months.

The Taxation (Annual Rates for 2017-2018, Employment and Investment Income, and Remedial Matters) Act 2018 amends the KiwiSaver Act by inserting a new ‘KiwiSaver status’ definition covering the information employees have to give to their employer (whether or not a member of an existing KiwiSaver scheme, deduction rate if already a member, whether on a contribution holiday or wish to cease deductions (by providing a non-deduction notice) or have chosen to opt out of a scheme). New members

must also provide information as required by the Commissioner for Inland Revenue and nominate a contribution rate. The Commissioner is to provide the necessary form.

FGC Newsletter: 12 April

Risk Assessment – the Mondelez Way

You can’t manage a risk unless you first identify it. Mondelez International uses Risk Assessment as a standard HSE tool. But what is Risk Assessment and how does it benefit the business? Risk Assessment is a focused

examination of what, in the workplace, could cause harm to people or the environment. The results of Risk Assessments help the business choose which preventive/corrective measures are most appropriate to control the risk with the benefit being that this is a proactive process, not a reactive one. While a risk assessment may be documented to cover a legal requirement, it should be viewed as a highly valuable tool which has the capacity to achieve much more. Risk Assessments are a means of engagement, involving health and safety representatives and subject matter experts in the process of identifying risks in their workplace and controlling them.

A Mondelez Example – Sales Fleet Driving Safety: A significant risk was identified highlighting frequent low-level incidents and vehicle damage linked to driver behaviour at a significant cost to the business. A tailored Driver Safety Programme was created to equip our sales drivers with best-in-class education and practical training to ensure safe driving is always front of mind and part of the way we work. After a successful launch, employees are showing a reduction in vehicle incidents and an increased awareness on the road, benefiting all New Zealand.

View Mondelez’s Risk Assessment worksheet on the FGC website

Developing a Workplace Domestic Violence Policy

An initiative has been launched to help companies implement domestic

violence policy and develop toolkits in their workplace. Business

Working to End Family Violence was set up by a group of companies,

including Fonterra, The Warehouse and Countdown. Their website

highlights the cost to business of employees who are subject to family

violence (estimated at $368 million in 2014 in lost productivity,

cover for sick days, and recruitment/retraining when victims are unable to keep working),

identifying those who may be suffering from family violence and the risk they pose, the benefits of

having a workplace policy that enables additional leave, flexibility for someone worried about

safety at work, and making counselling available. The site offers a template for developing a

workplace family violence policy, as well as a wide range of resources and examples, including

research and contacts of those who have already developed a policy, links to MBIE to ensure a

policy is in line with the law, and Shine’s guidelines on procedures. Check it out on the website.

Assessing Reliable, Quality H&S Advice

Companies can access reliable and quality health & safety advice and services on the Health & Safety Association of NZ (HASANZ) Register of Workplace Health & Safety Professionals website. It is New Zealand’s first national, online register of verified workplace health and safety professionals, and was formed following recommendations by the taskforce looking into New Zealand’s poor health & safety record following the Pike River disaster. It works by matching businesses with workplace health & safety professionals, providing access to a wide range of

FGC Newsletter: 12 April

expertise. The search function provides several ways to find the right adviser: a keyword search (eg, “asbestos”), an advanced search for professionals in one of three categories, a specific injury or health issue (eg, poisoning or depression), a specific health or safety subject (eg, bullying or fatigue), or a guided search using a series of questions. Only individuals, not companies, can list on the Register because it’s the competence of the adviser that counts. Businesses need to be able to identify qualified professionals – both consultants and in-house practitioners – with proven, relevant experience and specific skill sets to provide the right advice for better health and safety management. The Register was developed by HASANZ with funding from WorkSafe and ACC. HASANZ says greater use of quality-assured health and safety professionals will help reduce the risk of serious harm and fatalities in workplaces. See more on the website.

Pacific cultural engagement in nutrition The Food Industry Taskforce recommended companies try to target community activity to Maori and Pacific Island communities where feasible. One way to do that is to take a Workforce nutrition course - Pacific cultural engagement in nutrition. This course is open to health professionals as well as people who assist, support and offer advice to Pacific communities. It will assist with effectively and appropriately engaging with Pacific people and will aim to demonstrate what you need to know about engaging with Pacific people, the challenges and barriers to engagement and effective ways to engage. Registration closes on 2 May 2019 for the event on Thursday 9 May, 9:00am - 2:00pm at the Heart Foundation National Office, 9 Kalmia Street, Ellerslie, Auckland. Cost $40 NZD (inc.GST). Only one ticket per person. Register here: I'm Interested!”

Half Year Meeting – Annual General Meeting

The Half Year meeting is the time to think about what working groups you would like to participate in and for leaders whether they would like to be considered for the board. The AGC this year is May 16 at Eden Park in Auckland. If you would like to register your interest for working groups and other offices please contact the FGC office.