FMCG talked to some of the suppliers in this substantial category about innovations and consumer trends.

Treasures

Heather Greaves, marketing manager baby care, says Treasures is a premium nappy brand based locally in New Zealand, offering both standard nappies and nappy pants. In the last 12 months Treasures launched its limited edition rugby prints (a licensed promotion in conjunction with the NZRU, timely in the lead-up to the Rugby World Cup).

Greaves comments: “We were extremely pleased with the results from the limited edition campaign. Kiwi families really got behind the All Blacks and it was great to see them showing their support from the bottom up.”

New Treasures Jumbo box designs were also introduced. They are made using food-safe inks and creatively transform into playboxes. Popular with parents and toddlers alike, the new oven, boat and castle designs have been well received.

New/improved Treasures nappy pants were also launched in 2011. The introduction of the Junior sku now completes the range, which caters for active toddlers 6kg-16kg+. 

Greaves says: “When Treasures first launched their range the total nappy pants market stood at 1.6% dollar share of the total diaper category MAT to 12/9/2011. Treasures successfully helped grow this segment to a 7.0% dollar share MAT to 27/11/2011 (Aztec dollar share, total key accounts).”

While 2012 new product developments are under wraps, Treasures are happy to announce a new initiative in Q1 with four free nappies being added to the bulk packs. “Consumers are trending towards the purchase of nappies in bulk. Over the past 12 months total Bulk and total Jumbo have increased in share by 17.1% and 4.6% respectively (Aztec MAT to 27/11/11 dollar growth % YA, total key accounts)”, says Greaves.

ecostore

In the Baby Care category, ecostore supplies baby body wash, baby shampoo, baby moisturiser, baby sleepytime bath, baby bubble bath, baby soap and baby nappy balm.

ecostore’s healthier plant and mineral based range for babies includes bath time products such as its creamy goats milk baby soap, gentle lavender and geranium shampoo, body wash and sleepytime bath infusion, as well as its much loved lavender and geranium bubble bath. Its everyday baby care products include a nourishing moisturiser enriched with cocoa and shea nut butters as well as a protective nappy balm with native Horopito extract. The baby care range has been formulated for ecostore by award winning scientist, Sir Ray Avery, who brings more than 30 years experience in pharmacology to the research and development team. Each product in ecostore’s baby care range has been carefully formulated to match the oils and amino acids naturally found in babies’ skin, providing gentle cleansing, nourishment and protection, without removing the oils naturally present in the skin. Pania Newman, marketing executive, told FMCG: “Babies and young children are more vulnerable to the potentially harmful effects of the chemicals used in baby products as their skin is thinner than an adult’s and the naturally protective barrier coating the skin is not fully developed. It’s important to help them get the best start in life by caring for them with safer and healthier plant and mineral based products that are free of the potentially harmful chemicals sometimes found in baby care products such as propylene glycol, sodium laureth sulphate, mineral oil and synthetic perfumes and dyes.”

Jackel NZ

General manager David Rae told FMCG: “Jackel NZ Limited is market leader in the baby accessories segment with 54.2% value share* under the Tommee Tippee brand.

Total Baby Accessories is worth $7.8m*, with the total market flat with -0.5% decline year on year, reflecting a slight decrease in births over the past year.

“Tommee Tippee offers quality products in all major segments, namely Bottles and Teats, Feeding, Health & Grooming, Comforters, Teethers and Bath & Play. Bottles and Teats, and Feeding segments make up 60%* of the category; Feeding includes cups, bowls, utensils and bibs. Within the cups segment, the Tommee Tippee Discovera range, launched two years ago, now has 17.5% share in the segment and is growing 20% year on year.”

Tommee Tippee has launched eight new products in the last 12 months, including TT Closer to Nature Teethers Stage 2 and 3, the Tip n Sip cup range, Bendy Beeper Teether rattle and a Narrow Neck & Wide Neck twin pack of bottles.

Rae says 2012 will see the launch of more exciting new products across all segments as well as upgrades of existing products as Tommee Tippee seeks to continue to drive the category.

*Aztec Grocery Data MAT 27/11/11

AVENT

The Philips AVENT brand comprises of a range of Bottles, Teats, Soothers and Cups.

Philips AVENT have moved to consolidate their Soothers range from offering three age-appropriate Soothers to two age groups, being 0-6mths and 6-18mths. Designs have also been refreshed with the new colourful fun animal designs now in stores. Karen Kelly, key account manager – grocery, comments: “In the latest Qtr (Aztec to 4/12/11) Philips AVENT Soothers represent 24.4% of the Soother Segment in TKA showing value growth of +72.6% vs the same Qtr YA (to 5/12/2010).

“The new ‘animal soothers’ have assisted in the tremendous growth being seen by the overall Philips AVENT brand in the Soothers segment. In the latest Qtr to (Aztec 4/12/11) Philips AVENT Soothers represent 24.4% (14% share in the same Qtr YA to 5/12/2010) of the Soother Segment in TKA showing value growth of +72.6% vs the same Qtr YA to 5/12/2010.”

Regarding consumer trends, Kelly says: “Bottles and Teats continue to have very high brand loyalty with minimal brand switching once a consumer has chosen a particular brand. Consumer research undertaken in 2008 (Nielsen NZ) showed 73% of mothers always bought the same brand of feeding bottle and 78% the same teat.”

She adds: “The Philips AVENT brand represents 25.8% of feeding bottle sales in TKA in the latest Qtr to 4/12/2011 (Aztec) showing +19.6% growth in the latest Qtr vs the Qtr YA. In teats the Philips AVENT brand represents 39.4% of the segment with +11.1% growth in the latest Qtr vs the same Qtr YA.”

Kelly says: “Mothers look to the supermarket to top up on bottles and teats as the supermarkets offer price and convenience, but should the brand they are looking for not be available the majority will not swap brands but go back to a specialised retailer and the supermarket sale is lost.”

HUGGIES

Zahin Jalil, category manager Kimberly-Clark New Zealand, says HUGGIES is the number 1 nappy brand in NZ with 47%* value market share and it is also the number 1 brand recommended by mums**. The product range supports parents’ needs for every age and stage of their baby’s development. From a precious newborn, to an active and crawling baby, right through to toilet training there is a product to suit a child’s individual requirements. Jalil says: “With the birth rate down 2%***, it is even more important to maximise return out of the current pool of babies in the market.”

She adds: “HUGGIES nappies are continually innovating to provide mums with the best nappy for their baby. HUGGIES is the only newborn nappy with a wetness indicator that changes colour when the nappy is wet to tell new parents when it is time to change their baby’s nappy. Innovations like this are driving HUGGIES newborn nappies to 70%****market share of this segment.”

She adds: “Nappy Pants add value to parents as they are designed for a struggle free change for an active baby, and driving value growth of the segment +70.3%* (Nappy Pants segment growing at +41% in value)*. HUGGIES Nappy Pants are priced at a premium per piece, and by trading consumers up into this segment increases the overall value of the nappy category (which is currently in decline by 1.3%).”

Jalil says: “With the launch of HUGGIES Junior Nappy Pants in October 2011 there is now a complete range available from Crawler upwards and hence a greater opportunity for the consumer to continue to trade up. Nappy Pants are the way to transform the nappy category therefore HUGGIES is investing significantly in advertising alone to support this.”

She explains: “HUGGIES Pull-Ups have a wetness liner that helps the child learn wet from dry, helping them feel like a ‘Big Kid’. The fun Disney undie-like designs will be updated in early 2012, so look out for Cars 2 characters on the boy designs.”

She adds: “HUGGIES also has a range of baby wipes that are thick and super absorbent. The baby wipes category is growing at +3%* in value and the growth has been driven out of the premium segment +25.6%* with HUGGIES growth at 19.%.”

Look out for more exciting news from the HUGGIES brand in 2012.

*Aztec Quarter Value Data to 18/12/2011 

**Colmar Brunton Brand Tracking September 2011 

***Statistics New Zealand September Quarter 2011

****Aztec MAT Value Data to 18/12/11

Heinz Wattie’s

Group marketing manager Carey Wilken says the Infant Feeding Category is valued at $157 million and has shown significant growth of 47.9% in the past year (Nielsen, Total Supermarkets MAT $ to 4 December 2011). The extraordinary category growth was driven by exports of Infant Formula to Asia following product quality scares of Chinese-manufactured Infant Formula.

Birth rates were down by 1470 over the previous year to 62,261 and well down from the 2008 peak of 64,540 (live births registered in NZ in the year ending September). Wilken explains: "There are five segments in the Infant Feeding Category including Infant Formula & Toddler Milks ($129.4m), Wet Baby food ($22.4m), Dry Cereals ($1.9m), Dry Snacks ($3.0m), and Fluid/Juice ($0.4m). Karicare has assumed market leadership in the Infant Feeding Category driven by export demand for their Infant Formula & Toddler Milk. Heinz Wattie’s remains a strong no 2 with dominant market leadership in all other Infant Feeding segments, apart from Infant Formula & Toddler Milk. Heinz Wattie’s offers a comprehensive range of wet & dry baby food as well as infant formula and toddler milk drink products. Wattie’s also provides a wide range of Infant Feeding educational material to Plunket, Parent Centre & Well Child providers.”

Wattie’s, Heinz (Wet Baby Food)

Wilken says: “The Wet Baby Food market ($22.4m) continues to show steady $ growth +3.8% MAT, however volumes have declined driven by recessionary behaviour. Heinz Wattie’s is a dominant market leader with 71.9% share. The Wattie’s Plunket brand is market leader in jarred and canned baby food with more than eight out of 10 packs sold being Wattie’s branded. Wattie’s baby food is approved by Plunket and recipe development is done in consultation with an Independent Nutrition Advisory Group thereby assuring nutrition, appropriate texture and complete food safety.”

Research shows that Mum shops the category according to the age and stage of her baby; therefore it is important that a wide range of tastes and textures is available within each stage. With “stages” labelling, Wattie’s has made baby feeding as easy as 1, 2, 3. Stage 1 blue label products are ‘pureed’ simple fruits, vegetables, and rice, and are all suitable as first foods for babies just starting on solids. To introduce more challenging tastes and textures, Wattie’s red label stage 2 jars and cans are available in a wide range of flavours, with ‘mashed’ textures. Additionally, the yellow label stage 2 products provide baby with nutritious treats such as custards and desserts. Wattie’s stage 3 green label products introduce baby to more exotic tastes and ‘chunky’ textures.

Says Wilken: “Over the last 12 months the market has seen a strong growth in ‘Pouch’ format providing parents with on-the-go convenience. Pouch now accounts for $3.8m or 17% of the market. The launch in May 2011 of eight Heinz Simply Pouch and Spout varieties has helped to drive ‘Pouch’ growth.

“‘Organic’ remains an important part of the Wet Baby food market accounting for 31% of sales.”

Farex (Cereals)

Wilken explains: “The $1.9m Cereal Category has shown a steady +3.8% growth. Heinz Wattie’s with the Farex & Wattie’s Brands has 91% share of this sector.

The Farex brand received a fresh new look in October 2011, and for added convenience, the Farex Cereal packs are now resealable pouches. The change has been very successful, driving a 9.8% $ uplift in Farex sales Qtr vs Qtr YA. The packaging graphics change will be rolled out across Farex Rusks in 2012.”

Heinz (Snacks)

Following success in Europe, the UK and Australia, Heinz Wattie’s launched Heinz Biscottini in October 2011. Experience from other markets is that these are enjoyed as much by the parent as the child, says Wilken. “Sales to date are good. The launch will be supported by a strong sampling campaign. The $3m Snack category’s 29.3% growth has been driven by The Wiggles products, however the Heinz Brand remains a strong market leader and is committed to providing a good range of delicious, nutritious and portion sized snacks for little ones.”

Nurture (Formula & Toddler Milk)

Wilken told FMCG: “The 61.4% category growth has been driven by off-shore (Asian) demand, particularly for Karicare. This has resulted in share losses for S26 and Nurture, however actual sales of these two brands remain relatively steady. February is an exciting time for Nurture with fresh new packaging for the range. Nurture Gold with Digesti Plus meets the consumer need around digestion and is the only one with both prebiotics and probiotics to support healthy digestion.”

(All sales & share information is from Nielsen, Total Supermarkets MAT $ to 4 December 2011)

Green Monkey

In New Zealand, the Green Monkey organic baby foods range is available in Countdown, Woolworths, and selected New Worlds and Fresh Choice stores.

“Last year we launched our New Zealand Organic Beef, Apple, Beetroot & Pumpkin along with our New Zealand Lamb, carrot and sweet potato,” says managing director

Charlotte Rebbeck. “Our Beef and Lamb varieties won the New Zealand food awards in 2010 and the Australian food magazine awards in 2011, making Green Monkey Australasia’s most awarded baby food.”

She adds: “With high demand out of Asia for our products we have started production of New Zealand’s first organic ‘Growing up milk’ – developed with New Zealand’s top food scientist Lynley Drummond.

“We also have other super healthy foods for kids in the development stage so watch this space.”

Rebbeck comments: “The consumer megatrends are still heading towards quality, safe food, organics and honest products with a story to tell.”

Little Genie

Little Genie Wipes and Little Genie Bio-Nappies are available at Countdown stores. Little Genie Bio-Nappies come in four sizes: Newborn, Crawler, Walker and Toddler.

EnviroChoice director Jitu Parag explains: “Consumers are becoming more eco-savvy and therefore are looking for products which are sustainable and limit the impact on the environment. It’s important that the consumer knows that eco-friendly products can perform just as well as the market leaders who they are benchmarked against, and are priced competitively. We see this as an area of growth. For our company, it is about giving consumers a choice. It’s important to us that consumers know that environmentally sustainable alternatives to their usual purchases can be just as convenient and effective.”

Silk baby wipes

Global Products director Chris Potter says: “Silk is one of New Zealand’s leading baby brands. Silk baby wipes are in 90% of supermarkets in New Zealand and Kiwi mums are making it the fastest selling wipe in New Zealand (Source: Nielsen Data).”

Silk also has a very strong performing range of baby needs including oil, shampoo and other skin care products, adds Potter. In the last year Silk has also launched a range of baby bottles, teats, plates and other essentials.

Potter says: “Initial sales of these products are strong. Like other categories that Silk has entered, the intention has been to highlight and grow interest and sales within the category. Baby wipes is a category that has some traditional growth left to achieve (the opportunities for baby wipes are almost endless!); however there are some innovations that we have looked at to stimulate additional sales as well. Silk Baby Flushable Wipes are fantastic for the environment as they will quickly break down completely, (they are even safe for septic tanks). Along with this, they are a great entry into toilet training. Children, generally, have only had wet wipes used on them from when they were born. When they go into toilet training they will feel more comfortable using a wet wipe that can be flushed. Initial feedback on this product indicates that sales are additional to existing sales.”

Despite the economic downturn and some cheaper alternatives being available, these innovations and continued promotions ensure that Silk wipes sales are still in growth (ex factory sales up 5% 2011 over 2010), says Potter.

He adds: “Silk also ensures that the environmental desires of parents are covered with our biodegradable options: baby wipes that are made from vegetable fibres; biodegradable nappy liners and biodegradable, flushable baby wipes.”

Sulco

Precious Baby Wipes and Precious Nursing Pads are available from Sulco.

The company has recently relaunched Precious biodegradable bamboo wipes from a 60 pack to an 80 pack, while at the same time upgrading the packaging.

Consumer manager Deborah Higgins comments: “We also launched nursing pads around 12 months ago. The nursing pads are great value for money, sold as 15 pairs per pack (30’s). We are currently shipping this product with a free sample pack of five Precious Baby Wipes to sample our core target market – mothers of babies under six months old. This captures them at the beginning of their usage cycle in wipes.

“We have also launched a Precious 80 Fragranced wipe pack, which went to market in August 2011. This product is ‘lightly scented’ to give a fresh fragrance without the overpowering baby talc type of smell.”

Higgins adds: “Precious as a brand has grown 40.2% in value and 26.4% in volume in Total Baby Needs (Aztec quarter to Sept 25th vs YA). The Precious Nursing Pad 30’s are #3 out of four branded nursing pad sku’s, and are rapidly gaining on Pigeon for the number two slot. Precious offers excellent value for money and the strong sales with still relatively limited distribution shows strong repurchase for this product.”

The new Bamboo 80 pack has been on sale since September 2011. Higgins explains: “We opted to line price this with our other 80 count packs. This allows the consumer to make an eco friendly choice without paying a premium for it. This has not resulted in any trade off in sales from our other packs, in fact the Precious 80 Fragrance Free pack has grown over 48% in volume across the same period the Bamboo 80 was introduced (Aztec quarter to Sept 25th vs YA).”

She adds: “We are also relaunching our Precious Flushable wipe. We have made the wipe size smaller and put more in the pack taking it from 40 to 50 wipes – this ensures consumers still get the same value for money. We have also reformulated the solution used to make it more skin friendly.”

Bepanthen

Daniela Westphal, senior brand manager, Consumer Care, says: “The Bepanthen brand has been preventing and treating nappy rash of New Zealand children for nearly 25 years. It was voted by New Zealand mums as the best nappy balm in 2011 (OHBaby! Product of the Year Awards), which is evident in sales with leading market share position of 65.1% in the nappy rash treatment category in grocery (Aztec MAT 06/11/11). With four sku’s (ointment 30g and 100g, cream 50g and 100g) it continues to drive category growth in the channel, growing 7% vs YA (current MAT). As a $1.5m brand, it continues to go from strength to strength since the brand extended into grocery (from pharmacy). Bepanthen Ointment is clinically proven to prevent and treat nappy rash and provides a unique breathable barrier helping babies’ sensitive skin to heal quickly.”

NICE PAK

This supplier distributes Sudocrem Healing Cream for nappy rash and the treatment of skin irritations (including eczema, chafing, minor burns, scratches and abrasions); Infacol Wind Drops for the effective treatment of infant wind and colic; Wattie’s Baby Basics infant feeding accessories and Baby U Disposable Change Mats and Nappy Bags.

Among new products launched in the last 12 months are BABY U Disposable Change Mats and the Wattie’s Baby Basics relaunch, introducing new products into the range: Unbelievabowl – Super Suction Bowl and Press ‘N’ Pop Freezer Pots.

Sales and marketing director Matthew Draheim comments: “We recently re-launched the Wattie’s Baby Basics feeding accessory range with new contemporary look packaging. Keeping in line with current safety issues this innovative and functional range is BPA free. 

“New to the range is the innovative Wattie’s Baby Basics Unbelievabowl, a suction bowl which has been designed to stick to highchairs or tabletops to help at mealtimes. “This product is simple and easy to attach and once securely locked in position the child will not be able to remove the bowl or spill its contents,” says Draheim.

Also new to the range are the Press 'n' Pop Freezer Pots, which are perfect for freezing foods or breast milk in convenient 90ml portions. Secure clip-on lids ensure that food is protected from contamination and the soft Press 'n' Pop bases make it easy to pop the frozen food cube out. Alternatively they can also be put in the microwave to defrost and warm straight from the freezer and feed directly from the pot.

Draheim comments: “Recently there had been a lot of media hype around BPA, which consumer products it is more commonly found in, and what researchers believe it may do to the human body. BPA stands for Bisphenol A – a substance that is included in hard plastic known as polycarbonate, like baby bottles and other varying consumer products including infant feeding cups and bowls, made for everyday use around the home. In some circumstances, chemicals in food packaging can migrate into the food product, and vice versa, depending on the nature of the packaging and the food contained within (Source: Food Standards Australia New Zealand (FSANZ), Bisphenol A (BPA) and food packaging, Fact Sheet, 19 January 2010).”

He adds: “BPA-free products, especially baby and toddler feeding accessories, are becoming a must in the Baby Needs category and many major retailers will now not accept products that contain BPA and are removing existing products from shelves. We have seen an increase in sales since updating our packing with the ‘BPA Free’ logo and have noticed an increase in marketing activity with ‘BPA Free’ icons predominately featured. The entire Wattie’s Baby Basics range is BPA free.”

Draheim says: “Retailers can use the Baby Category, to make a statement even if it is only a small store. This assists in having the category noticed and shopped more regularly, rather than as an emergency shop, thus increasing the retailer’s sales and profits.”

Unicharm

Brand manager  Kim Fraser says Unicharm Australasia has done it again with the launch of new BabyLove DriWave nappies, the latest wave of nappy innovation. In February 2012, Unicharm’s BabyLove brand is launching the latest wave of nappy innovation with the new and improved DriWave patented layer technology.

Fraser explains: “New BabyLove DriWave features a unique top sheet structure that is loose on top and dense at the bottom, which quickly draws liquid away from the nappy surface, keeping the baby drier for longer, which makes it ideal for overnight use – the real test of a nappy.”

She adds: “Dryness is one of the most important factors for babies in disposable nappies, especially when wearing for a long period of time overnight. New Mums are particularly concerned for their young babies’ skin comfort, which is why we have developed this unique new DriWave technology to keep the nappy surface dry”.

Unicharm Australasia is supporting the launch of the new BabyLove DriWave nappy with a substantial TV and sampling campaign, along with exciting new-look packaging.”

BabyLove DriWave nappies are available in Countdown and selected New World and Pak'nSave stores throughout New Zealand.

Pigeon breast pads for mums

Lisa Linton, brand executive at BDM Grange, says Pigeon was established over 50 years ago, with the aim of meeting the needs of mothers worldwide. Pigeon produces a range of high quality, innovative and user-friendly merchandise for babies at affordable prices. Since its inception, the company has grown steadily and has developed a strong brand presence in more than 40 countries. Pigeon places strong emphasis on research and development. Pigeon values the needs of both mother and baby with products which offer comfort and convenience. 

Linton says: “We have had on-going positive success with the ‘hero’ product – breast pads. This success is largely attributable to strong on-going breast pad sampling campaigns nationwide. They are recommended by midwives and medical professionals, giving the credibility this product deserves. These breast pads are sought after as they have proven to be one of the most dependable, premium quality brands in the market.”

She adds: “Pigeon breast pads are comfortable and discreet. They ensure a perfect fit with a specially contoured 3-D shape and non-slip adhesive tape. Pigeon ultra-slim and lightweight breast pads have a super absorbent core with breathable waterproof coverings. Excess milk is trapped so clothes and skin stay fresh and dry. Complete with soft edges, and fluffy lining, the Pigeon breast pads are designed for maximum comfort. Ultra soft and contoured for a comfortable fit, Pigeon pads can be worn with confidence. They are individually packed for extra hygiene, convenience and are in a silent, easy open wrap. Pigeon breast pads are available at supermarkets nationwide.”