|Canned foods : Ultimate convenience|
Canned foods are essential pantry items. Convenience, value for money and innovation are the main drivers in this category. FMCG talked to some of the key suppliers in New Zealand.
Many canned food products had their origins in military developed foods, designed for storage longevity and ease of preparation in the battle field. After World War II, some commercial food companies were left with surplus manufacturing facilities and began to develop new lines of canned foods designed for use in the home. Like many new product introductions, not all were successful. Canned peaches and condensed milk became convenient staples to this day, while in the US for example, cheeseburgers-in-a-can didn’t quite catch on.
Emma Foods has been in business since 1978. Based in Christchurch, Emma is New Zealand’s only canned mushroom producer. Meadow Mushrooms has captured the best of Mushrooms by offering a full range of canned products under the Emma brand.
The range consists of:
220gm Whole Mushrooms in Brine
The Emma brand has a 36.9% share of the canned mushroom category (total key accounts – Aztec MAT period ended 8 April 2012), explains spokesperson Yvonne Clyne. She says: “Emma canned mushrooms can provide a quick and tasty meal in minutes, just heat and eat. Ideal for a quiche filling, oven baked potatoes or kumara, sauce for steak, base for a soup, added flavour for pasta, paninis and hearty winter casseroles.”
For further information on Emma Foods contact the sales team:
Mark Santy (Southern Region)
Tracy Scott (Central Region)
Zane Hutching (Upper North Island)
Wilson Consumer Products
For over 25 years Wilson Consumer Products has proudly represented the American Hormel company in New Zealand. Key account manager Paul Doherty says: “Many people are surprised to hear Hormel’s ubiquitous SPAM Classic 340g SKU sells more than $1m worth per annum in Total Key Accounts (Aztec MAT to 22/04/12) making it the biggest Canned Meat product outside of Corned Beef, and SPAM Classic value sales are 15% more than the largest Canned Chicken product.”
There are four different varieties of SPAM – Classic, Lite, Bacon and Turkey.
Another canned food product from the Hormel family is STAGG Authentic American Chilli. There are three generous 425g products available in this range; Classic, Lean Beef and Dynamite Hot.
Doherty says: “Great by itself or with rice, STAGG Chilli is the ultimate ingredient for anyone yearning for a tasty nachos meal at home. The secret to STAGG’s success is its generous meat content – up to 24%, making it a great value, one step meal for hearty appetites. Kiwis are beginning to catch on to STAGG with sales in the last quarter up 26.3% versus last year. (Aztec to 22/04/12). With winter coming on STAGG is a must stock for your Canned Foods Segment.”
Aunt Betty’s Creamy Rice
Aunt Betty’s has improved the quality (flavour and texture) of the current Creamy Rice products in the market over the last 12 months.
“Aunt Betty’s canned rice is the number one Creamy Rice brand ($) and growing at almost 7%*,” says Donna O’Herlihy, brand manager.
She explains: “Aunt Betty’s Vanilla canned rice 4x100g is number one product* with over $1 million in retail sales (in canned rice category) and is driving growth into the canned rice segment with the 4x100g format. These two products (in Chocolate and Vanilla) now hold 23% share of the segment*. Aunt Betty’s is the only supplier for this format.”
She adds: “We’ve seen two main types of consumers in this category; the consumers who eat this as an easy after dinner treat or ‘hunger buster’ and consumers who are eating creamy rice for the added protein to their diet (athletes etc). Recently, we believe the trend is more towards the dessert occasion with consumers heating up the rice before consuming or adding fruit etc. The 4x100g format is also perfect for kids’ lunchboxes or people on the go.”
* Aztec TKA MAT to 15/04/12
In NZ, SPC Ardmona currently has two brands – SPC and Goulburn Valley. SPC caters for the mainstream canned market, while Goulburn Valley delivers an array of plastic packs suitable for the snacking occasion.
Adam Bateman, national key customer manager says: “SPC Ardmona represents 13% value share of the NZ Packaged Fruit category (Aztec MAT 22/04/2012). SPC represents 9.6% value share, whilst Goulburn Valley is 3% of the packaged fruit category. Goulburn Valley is the leader of diced fruit snacks and holds 18% value share of the overall fruit snack category with 1.1% dollar growth on last year (MAT 22/04/2012). Goulburn Valley will continue to deliver conveniently packaged fruit that’s great with breakfast cereal, as a workday snack or to simply make a dessert shine!
“Future value growth of the category in NZ will rely on innovation and up-trading the consumer in to value-add packs. The NZ category is overwhelmingly skewed towards canned fruit in comparison to other established markets, which are driving different mediums such as plastics and pouches. The NZ market needs to continue to deliver convenience in packaged fruit so that consumers adopt the category.
“Multi Serve Fruit is the biggest segment in Packaged Fruit and consists of both Cans and Resealable Plastic ranges. While Cans are the largest segment of Multi Serve (97.7%) they are declining (-4.3%) while the smaller plastic format is showing signs of growth (+12.6%).
“Fruit Snacks satisfy a growing consumer need for healthy on-the-go snacking. Seasonality exists in Fruit Snacks with four key ‘back to school’ periods each year,” explains Bateman.
‘Dole pineapple’ is one of the world’s most well-known household brands.
In New Zealand, Pavé represents Dole Packaged Foods, a California-based division of Dole Food Company.
Among new products launched in NZ in the last 12 months are:
Fruit & Jelly – Mango 4/113g
Angus Hamilton, CEO, says: “Progress of these products is steady with increasing uptake. We are also planning to launch new products in the next few months.
“There is large consumer appeal for ‘In Juice’ items. Consumers love their old favourites improved with good quality fruit – fruit & rice, fruit & jelly, fruit & custard.”
Sealord is NZ’s 16th largest grocery brand, says Steve Sutherland, marketing manager.
He explains: “We are also the leading supplier of canned seafood in NZ with 56% dollar share of canned seafood. Sealord has an extensive range of products in the Tuna and Salmon segments, as well as Smoked Fish, Shrimps and Crab.
“Media communication from Sealord is focussing on building consumer awareness of the versatility of Tuna and Salmon. We have recently launched Tuna Mayonnaise 95g, Salmon Sensations Mayonnaise 85g, and Salmon Sensations Tomato and Onion 85g, late 2011.
“All SKUs combined have added $430k to the category and Tuna Mayo is achieving a very strong 19.3USW. Salmon Sensations Mayonnaise and Tomato and Onion have both produced solid numbers selling at 7.3 and 7 USW respectively. The canned market remains competitive as it is a mature market where offerings are generic and duplicated across brands.
“Sealord is constantly evaluating new opportunities to drive value into the category. We have a number of products in the development pipeline to meet consumer needs, so keep an eye out for further innovation from Sealord.
“Sealord, as market leader and more importantly a New Zealand business, is looking to innovate in a way that builds on our foundation values of sustainable fishing practices. Through work with the Marine Stewardship Council and our participation in the International Seafood Sustainability Foundation Sealord is ensuring our products are ethically sourced and tuna fisheries are well managed and protected for the future.”
Consumers are continuing to look for nutritious, versatile and convenient products. Canned Tuna and Salmon fill this need and offer excellent value for money. In addition, consumers are becoming more aware of sustainability and increasingly wanting to be sure their choices are environmentally friendly.
“Sealord is meeting this challenge by working with global scientists, environmental experts and industry on fisheries management programmes, as well as looking for new choices for environmentally aware consumers,” says Sutherland.
Wattie’s is an iconic canned food brand, voted New Zealand’s Most Trusted Food Brand1 and loved by Kiwis for generations. There are a lot of myths and misperceptions that surround canned foods and their long shelf life. The secret is simple – backed by over 75 years experience, Wattie’s canned products are sealed in the can and then pressure-cooked to help lock in the goodness and taste without the need for preservatives.
Wattie’s first started canning fruit products in Hastings in 1935. Simon Crampton, marketing manager for Canned Fruit and Vegetables, says: “We select the finest New Zealand grown fruit and vegetables – Wattie’s beetroot and peaches are grown locally in Hawke’s Bay, and every one of our Asparagus spears is hand picked for canning. Look out for our NZ Grown logo on selected Wattie’s products.”
Company founder, Sir James Wattie, also saw the need to diversify into non-seasonal products such as spaghetti, baked beans, tomato sauce and soup, as well as canned food for infants. These products have become popular family staples in thousands of New Zealand households.
According to Tina Wong, marketing manager for Baked Beans and Spaghetti, “Wattie’s sells over 18.5 million cans of New Zealand’s favourite BeaNZ & Spaghetti a year; with Wattie’s Spaghetti 420g the second biggest selling grocery item in New Zealand and Wattie’s Baked Beans 420g the fifth biggest2. Wattie’s is encouraging consumers to think beyond using these products on toast by highlighting the versatility of Beans and Spaghetti for use in family recipes and for occasions other than the typical weekend breakfast.”
Wattie’s is also New Zealand’s favourite Tomato Sauce3. The unique taste comes from the large number of tomatoes that are concentrated and crammed into every can and bottle, making it rich in lycopene, a powerful antioxidant, and combined with a special blend of spices, it’s the taste that Kiwis know and love. Nowhere else in the world is Tomato Sauce sold in cans, yet this is New Zealand’s most popular packaging format.
Wattie’s soups are made with the finest quality ingredients and are naturally good for you too. Kerry Tomane, marketing manager for Soup says: “It’s what’s inside that makes our soup very special. Wattie’s Very Special Creamy Pumpkin soup features real New Zealand cream and fresh New Zealand butternut pumpkin for example. We’re currently harvesting over 650 tonnes of butternut pumpkin in Hawke’s Bay for the popular soup. The Kiwi icon also contains four serves of vegetables and no preservatives.
“In addition to six new recipes hitting the shelves this season, we’re giving Kiwis the chance to win stunning diamonds valued at $5000 each. There are 10 to be won instantly; consumers simply check under lids of specially marked cans of Wattie’s Very Special soup to see if they’ve won! The nationwide hunt is set to encourage consumers to consume soup more often, rather than pantry stocking on promotion this winter.”
Wattie’s launched into the Canned Chicken segment in April 2010, and now holds 32.1% MAT value share of the Canned Chicken Segment, with impressive growth +43.2% in the latest quarter3, says Vicki Sew Hoy, senior product manager for canned meats. Made with premium chicken breast and no preservatives, Wattie’s Chicken is really versatile. Sew Hoy says: “It’s a fuss-free convenient way to eat chicken and is great to use in sandwiches, wraps, sushi, salads or mixed with pasta or rice. All our Wattie’s Diced and Shredded Chicken products also meet the National Heart Foundation’s Tick Criteria. Overall results have been pleasing with the four new Wattie’s Shredded Chicken products launched last August largely incremental to the category.”
Wattie’s also distributes other canned food brands including, Oak, Pacific, Hellaby’s, Golden Circle and Greenseas.
1 2010 and 2011 Readers Digest Survey
2 Source – Aztec New Zealand data to MAT 20th November 2011
3 Source – Nielsen market data to 25th March 2012