The Idealog guide to food innovation


Published on

The figures indicate that New Zealand has the ingredients to be a worthy contender on the global food export market. So what, exactly, constitutes the winning recipe, and what are the challenges we face as a minority?

  • Be the first to comment

  • Be the first to like this

No Downloads
Total views
On SlideShare
From Embeds
Number of Embeds
Embeds 0
No embeds

No notes for slide

The Idealog guide to food innovation

  1. 1. If you’re thinking about exporting to China, there’s no room for guesswork. New Zealand Trade andEnterprise can give you the tips and tools you need to move your business into this market; fromcountry overviews and language and culture, to sales and marketing suggestions. That way, you’llknow that the executive you’re dealing with hasn’t left for an impromptu holiday, he’s just waitingfor the right time to make his decision.Visit or call us on 0800 555 888.Get the answers here. Succeed over there.IN CHINA,A BUSINESS EXECUTIVEMAY CONSULT THESTARS, OR WAITFOR A ‘LUCKY’ DAYBEFORE MAKINGA DECISION.TRUE FALSET&E0028/B
  2. 2. The figures indicate that New Zealand hasthe ingredients to be a worthy contenderon the global food export market. Sowhat, exactly, constitutes the winningrecipe, and what are the challenges weface as a minority?TEXT ANDY KENWORTHYIN ASSOCIATION WITHTheIdealogguide toINNOVATIONFoodPHOTOGRAPHROBINHODGKINSON,COURTESYOFTHEFOODBOWL
  3. 3. ContentsTheIdealogguidetoFood innovationChapteroneBasicingredients82ChaptertwoThechallengeChapterthreeThe utensils94111ChapterfiveThespecialsauce98ChapterfourExperimentingwiththerecipeDigestifFinalthoughts1048880/IDEALOG.CO.NZ
  4. 4. AJParkisaboutiP•intellectualproperty•ignitingpassion•ideaspervading•innovationprotected•integratedprocesses•intelligentpeople•increasingpotentialiP is about ideas prosperingKiwis are innovators, bringing fresh ideas to each day.Since Rutherford discovered the proton, our scientistshave been at the forefront of world-class innovations.Whether it’s the disposable syringe, The HamiltonJet, or the Bungy, we Kiwis have continued to use ourideas and technologies to change the way we live.At AJ Park we work with you to find the right IPsolutions, giving you the confidence that yourinnovation is protected.We delve into your inventions’ DNA, right downto the last atom, to understand the best IPstrategy for you.With a team that includes scientists, engineers,IT experts, patent attorneys and lawyers, you getthe best advice that spans over 120 years.For clear concise and jargon-free IP advice,talk to our team.0800 257 275 I www.ajpark.comNew Zealand + AustraliaAJP10315_IM
  5. 5. New Zealand does good food. We all know that.But can we sell enough of it to claw our way up theOECD affluence tables and get ahead of a rapidlyaccelerating pack of competitors?CHAPTER ONEBasic ingredients82/IDEALOG.CO.NZIDEALOG GUIDE TO FOOD INNOVATIONPHOTOGRAPHYROBINHODGKINSON,COURTESYOFTHEFOODBOWL
  6. 6. MAY-JUNE 2013/IDEALOG /83To know where New Zealand’s food andbeverage sector might be headed, andwhat opportunities there might be foryou, it’s important to know where we are atright now.New Zealand has a worldwide reputation forhaving the right blend of climate, technologicalsophistication and laws to give it the potentialto be a world player in the food and beveragemarkets. And offshore we have the world’sfifth largest exclusive economic zone (EEZ),covering roughly 430 million hectares of oceanfull of seafood (that’s about 15 times the size ofour land mass).Lisa Barrett, General Manager of Tourism,Sectors, Cities and Regions at the Ministry ofBusiness, Innovation and Employment (MBIE),says: “Food has been New Zealand’s majorexport for 120 years. Contrary to what manymight think, the nature of the products weexport has changed significantly in that time.“Before the freezer ship we exported grainsand pulses. By the 1940s it was butter, lamband cheese. Today it’s milk powder, butter,lamb, beef, cheese, apples, kiwifruit, seafood,wine, and beef – with grains and pulses makinga bit of a comeback and processed foodsgrowing fast.”Anton Gibson is a partner at intellectualproperty company AJ Park and heads up itsAuckland office’s life sciences patent practice.“What I think is exciting in the food space isthat New Zealand still has such a competitiveadvantage in being able to produce more thanit eats in a way where you can trust the quality,and we are skilled at wrapping that up inappealing ways and getting it out of thecountry,” he says.Meanwhile, big players such as Asahi andKirin from Asia, Coca-Cola from Australia,Unilever, Cadbury, Nestlé, Heineken andDanone from Europe as well as US giants suchas Heinz, McCain, Mars and Bacardi, have allcome to invest in the New Zealand food andbeverage sector.This, along with rapidly accelerating localfood and beverage production in NewZealand’s key target markets is creating anatmosphere of almost feverish competition.Clearly, nobody sane now believes it is okayto just stick to farming and hope nobody elseworks out how to cultivate cows and sheep.We have to continue to innovate in the way weproduce, distribute and sell the New Zealandgoodness both at home and abroad.Michael Crampin, group head of creativestrategy at strategic design practiceDesignworks, believes we are living througha food revolution where this sector is morefront-of-mind than ever before.“It has become the cult of food andbeverage,” he says. “Whether it is Jamie Oliver,Masterchef or the general trend of consumersreally needing to know who is behind thebrands, where the product comes from andwhy they should love it.”Read on to find out how we get the rightanswers to that question.Infant formula Confectionery Frozen mealsand sidesPet food Wine‘The nature of theproducts we exporthas changedsignificantly. Beforethe freezer ship weexported grains andpulses. Today it’s milkpowder, butter, lamb,beef, cheese, apples,kiwifruit, seafood,wine and beef – withgrains and pulsesmaking a comebackand processed foodsgrowing fast’LISA BARRETTAccording to research firm Coriolisthe following sub-sectors of theNew Zealand food and beveragemarket could hit the US$1 billionmark by 2025:Billion-dollar expansion bids
  7. 7. 84/IDEALOG.CO.NZIDEALOG GUIDE TO FOOD INNOVATIONBIGGER HELPINGS FOR THE NZFOOD AND BEVERAGE MARKETResearch firm Coriolis reckons New Zealand’s blend oftemperate climate, stable democracy and economic freedommean the country is well-positioned to triple its food andbeverage exports over the next 15 years.In 2010, food and beverage made up just over half ofNew Zealand’s total exports, with a value of US$17 billion.MBIE now estimates that processed foods make up about$2.2 billion of those exports each year.According to the Ministry, infant formula sales have increasedfrom around $20 million in 2003 to close to $750 million today.Food and beverage exports have trebled in the past 17 yearsand now make up more than 10 percent of our GDP.The food and beverage sector grew by seven percent between1995 and 2010, vastly outstripping our European competitors.-$5.0$-$5.0$10.0$15.0-$5.0$-$5.0$10.0$15.01965196619671968196919701971197219731974197519761977197819791980198119821983198419851986198719881989199019911992199319941995199619971998199920002001200220032004200520062007200820092010ExportsImportsNet tradebalanceNew Zealand hasa strong andgrowing tradesurplus in foodand beverageUS$bNew Zealand F&B trade value: exports versus importsSOURCEUNCOMTRADEDATABASE(CUSTOMJOB);CORIOLISANALYSIS,COURTESYOFTHEMINISTRYOFBUSINESS,INNOVATIONANDEMPLOYMENTPHOTOGRAPHPHOTONEWZEALAND/TERRYHANN
  9. 9. IDEALOG IN ASS OCIATION WITH FONTERRACheese and butter exportsto the UK were the highvalue incarnations of milkin the first half of last century, butsince then innovation at Fonterrahas seen the white gold hit newmarkets by being spun into trulyhigh value products – with namessuch as milk protein concentratesand whey protein isolates,hydrolysates, dairy complexlipids and probiotics.“Fonterra is well recognisedas one of the leading innovatorsin the world, both in dairyingredients and finished product,”says managing director of FonterraNutrition, Sarah Kennedy.One key to its success is thatit works on an ‘open innovationplatform’ over the areas ofpaediatrics, everyday nutrition,mobility, food service and itspre-factory gate research,working with a number ofinstitutions in New Zealand andaround the world.“New product development isdirectly linked to our business units,which feed in insights gatheredfrom different regions around theworld, to make sure products andingredients are developed for localmarket requirements.”Research at Fonterra is acombination of blue sky scienceand product design. Down atthe Fonterra Research &Development Centre (FRDC)in Palmerston North, they’reRefreshing milkSince 1945, per capita milk consumption has steadily fallen across theWestern world, and is now well below pre-war levels. In response,diversifying milk and developing emerging markets for ‘the whitestuff’ has become one of Fonterra’s main strategic objectivescurrently excited about ‘C21’,shorthand for ‘Cheese of the21st Century’, an advancedtechnology that has so far createda mozzarella for use on pizzawhose process takes only oneday to transform fresh milkto a frozen, shredded, cheesypackaged product. That’s prettyspeedy considering the traditionalgrated mozzarella-makingprocess requires months of cheesematuration, freezing, thawing,shredding and packing.Another FRDC buzzword ishydrolysates. Handy in the foodand beverage, medical nutrition,sports nutrition, and infantnutrition areas, hydrolysates helpwith faster digestion of protein –particularly important in sportsrecovery and for hospital patients– and help prevent dairy proteinallergy issues in infants.Hydrolysing is really justsnipping up proteins underspecific conditions using specialenzymes, so that they areeffectively pre-digested, butit’s quite difficult to do it in away that conserves both theflavour and the functionality. AndFonterra’s scientists are rathergood at it.But some of the company’sinnovations have been to take anexisting product and improve itbeyond recognition. Scientistsin Europe originally came upwith Milk Protein Concentrates(MPCs) in the 1970s. MPCsare mostly whey and casein,the elements left over after themoisture, fat and most of thelactose and minerals have beenextracted from milk.MPCs were originally addedto cheese to bulk it up, butsometimes they didn’t dissolveand resulted in hard nuggets.But Fonterra had dairy proteinmagician Vijay Ganugapati, whowas instrumental in transformingthe structure and functionalityof MPCs. The IP he developedinvolves transforming the mineralenvironment of the MPC, whilemaintaining the nutritional value.This enables the MPCs to bedissolved (a feat previously notpossible) and even survive theUHT process.Now Fonterra’s functionalMPCs are exported to the globe,added to a myriad of products inmany markets and are responsiblefor an array of benefits includingimproving flavour and texture indairy products and creating high-protein beverages.More recently, Fonterra’sscientists have reworked wheyprotein (which is packed withbranched chain amino acids,beneficial in building muscle)so it can be added to acidicsports drinks without destablisingTEXTSKYEWISHART
  10. 10. IDEALOG.CO.NZ/BUSINESSPLANADV2013structure design, humannutrition, advanced processingand control, analyticalmeasurement technology, animalnutrition and health and otherfarming technology) and withthese cohorts, along with a hostof commercialisation directorsand business partners, it’s hopedthat Fonterra’s innovations willFonterra Nutrition managingdirector Sarah Kennedy.and turning the drink cloudy.They can also pack moreconcentrated whey protein intoUHT beverages than has everbeen pulled off before.“Protein is one of the absoluteemerging trends,” says SarahKennedy. “There’s a need forhigher-quality protein acrossall age groups with differingrequirements, whether it’sin ageing, general growthand development, musclemaintenance, satiation and soon. It certainly is an elixir withuntapped potential.”To make sure it’s not innovatingup the wrong tree, Fonterramakes sure it’s actively engaged inconsumer surveys to gain insightsabout product development andits subsequent marketing.Surveys have covered topicssuch as the US sports nutritionmarket (a leader in a globalmarket that has been increasing8-9 per cent every year forthe past 15 years), discoveringmost mass-market consumers– the root of the growth – neededucation on the exact role ofprotein to get them buying thegood quality stuff.They’ve also covered ‘HealthyAgers’ in seven markets aroundthe world, who love the benefitsof dairy protein, but are fussyabout the format it’s delivered in,pointing to the sort of productsFonterra scientists should belooking to design.Infant formula, particularlyfor the Asian markets, is a hugearea of research at Fonterra, inthe quest to deliver nutritionalbenefits that are closer to thoseof mother’s milk and its wealth ofcomplex nutrients.Probiotics, or bacteria thatconfer health benefits, is one sucharea of research forging aheadat Fonterra, both in productdevelopment and clinical trials.There are more than 300scientists at the FRDC tacklingresearch in its science andtechnology programmes (foodcontinue to crack markets aroundthe globe and push New Zealandmilk as far as it can go.“Some of our researchersare leading in the world,”says Kennedy. “It really isextraordinary, some of thework that is going on – it’scutting-edge, and is helping setour road map for the future.”IN BRIEFFonterra is a co-operative owned,integrated dairy business witha diverse range of R&D,manufacturing, distribution andmarketing activities. Of thebillions of litres of New Zealandmilk supplied by farmershareholders every year, around98 percent is processed andexported around the world aseveryday dairy nutrition(typically whole milk powder orskim milk powder) or innovativeadvanced nutrition products.The Fonterra Research& Development Centre inPalmerston North is the world’slargest dairy research centre andboasts a long history of worldfirsts in dairy technology,research and productdevelopment.CONTACTTo find out more, visitwww.fonterra.comThe Fonterra Research and Development Centre inPalmerston North is a hive of activity with more than300 scientists working on blue skies research, newtechnology and product development.
  11. 11. Every good food show needs a challengeand New Zealand is no exception. The oldtyranny of distance issue we hear so muchabout is particularly relevant when you’retrying to get something to people a longway away that’s in a fit state to eatThe challengeCHAPTER TWO88/IDEALOG.CO.NZIDEALOG GUIDE TO FOOD INNOVATIONPHOTOGRAPHYROBINHODGKINSON,COURTESYOFTHEFOODBOWL
  12. 12. MAY-JUNE 2013/IDEALOG /89This has spurred some of our greatestfood innovations – perfecting the art offreezing and packaging meat productsand becoming a lead player in selling powderedmilk to the world.As Anton Gibson explains: “Our biggestchallenge has always been that we face havingto ship lots of air and water a long way to getour products to market, so we have becomevery good at removing that air or that water.Examples are the way we process our milk,pack our products and adapt these for specificmarket requirements. Another issue for someproducts is maintaining freshness for a longway, and there too we have overcomechallenges with technology – in both the freshand frozen space, for a variety of products.”But there are still limits, especially the factthat we don’t have a handy few hundredmillion people on our doorstep to sell to, asmany of our European competitors do. Eventhe Australian market is seen as a trickycustomer with the stranglehold of two majorsupermarket chains calling the shots on priceand quality of any food or drink that wants tosell in big numbers.The strength of the big retail chains is also amajor barrier in many other markets, and notonly because big buyers like Tesco wield suchinfluence on the basic metrics – they can alsoeffectively de-brand food heading into theirsystem, reducing the differentiation so that weare all just competing on the basic metrics.“With some products, we have competed solong on price that even though we aredelivering a very high-quality product, thevalue is being gained by the end seller, not theNew Zealand producer,” Gibson explains.In this eco-conscious and climate-aware agethe distance challenge has also taken on thenew form of food miles, a concept that hasbeen used to batter our primary industriessince the middle of the past decade. Basically ameasure of how far your lunch is from where itwas originally frolicking or growing outdoors,it has been extrapolated out as a rough measureof how much environmental damage yourmeal has caused. New Zealand responded to theinitial challenge with comprehensive LincolnUniversity research showing that the relativelyeco-friendly way in which much New Zealandfood is grown made the picture much morecomplex. But the challenge remains, sinceordinary shoppers don’t read academic research– they look at labels, as we shall see.The perception of remoteness can be a factorof culture as much as geography. Consider fora moment the ludicrousness of sending morethan 84 percent of our exports from 1910 allthe way back to ‘The Motherland’ on the otherside of the planet. Did we really imaginethat nobody between those two points wouldbe interested?Of course, that situation has radicallychanged. Today, the UK takes only four percentof our exports, with ever-increasing amountsgoing to China, Southeast Asia and India,while sub-Saharan Africa has also developeda growing appetite for our dairy products.But despite the dedicated work of NewZealand Trade and Enterprise, along withlarge-scale pioneers like Fonterra, the averageNew Zealand food and beverage firm stillstruggles to have their produce distributed andsold in the major growth markets. As in allsectors, this can come down to a lack ofunderstanding for the different business‘With some products, wehave competed so long onprice that even though we aredelivering a very high-qualityproduct, the value is beinggained by the end seller, notthe New Zealand producer’ANTON GIBSONPHOTOGRAPHPHOTONEWZEALAND/ALEXWALLACE
  13. 13. In order for products tobe successful in majorgrowth markets, theyhave to be adapted tosuit local tastes.90/IDEALOG.CO.NZcultures at work. But in the food and beveragesector this can be compounded by the trials ofnavigating the various food regulation systems.Perhaps most importantly, it can also comedown to the challenge of understanding whatconsumers in this market like to eat, and howthey like to eat it.Richard Templer, acting general manager,science engineering and technology deliveryat Callaghan Innovation, says: “People oftenunderestimate the complexity of going intoa market like China. I think the challenge forNew Zealanders going there is that you aretalking about a market that is far bigger thanvirtually any of the other markets you areinvolved with, and it is not homogenous. Thereare highly sophisticated urban areas and quiteunder-developed rural areas, for example. Thefact that the infant formula market has provedchallenging for an organisation with the scaleand sophistication of Fonterra suggests it is notan area where you can just charge in.”Templer is also concerned that the money toenter such markets is still hard to come by.“One of the real challenges facing NewZealand is capital availability. This is affectingeverybody from startups to large establishedcompanies. Finding people who are ready toinvest in innovation and research rather thanjust bricks and mortar is a real challenge forNew Zealand. I think it is starting to improvebut in the midst of the global financial crisis itwas very hard even for established companiesto get any kind of funding.”Jef Wong, group head of design at strategicdesign practice Designworks, takes that point,but he believes the only real limitations arethose we might place on ourselves.“I don’t think there is any barrier, in that thebrands we create in New Zealand are world-class,” he says. “The barrier is simply findingpeople with the vision to do it.”‘I don’t think there is anybarrier, in that the brands wecreate in New Zealand areworld-class. The barrieris simply finding peoplewith the vision to do it’JEF WONGPHOTOGRAPHOFJEFWONGKAANHIINI
  14. 14. Europe11%United Kingdom5%Russia1%USA10%Canada2%Mexico1%Australia11%Pacific Islands2%Japan7%China11%Hong Kong2%South Korea2%Taiwan3%SE Asia14%Saudi Arabia2%UAE1%OtherNA/ME/CA6%Venezuela2%Other7%Europe & Russia17%North America13%Asia39%Total = US$16.7bOceania13%North AfricaMiddle EastCentral Asia17%MAY-JUNE 2013/IDEALOG /91Aggregate annual food & beverage export value by key marketsNew Zealandexports F&B to a widerange of destinations.Interestingly, Australia nowtakes twice as much as theUnited Kingdom and Asia isworth around 33 percentmore than Europe, Russiaand North Americacombined.SOURCEUNCOMTRADEDATABASE(CUSTOMJOB);CORIOLISANALYSIS,COURTESYOFTHEMINISTRYOFBUSINESS,INNOVATIONANDEMPLOYMENT
  15. 15. IDEALOG IN ASS OCIATION WITH CALLAGHAN INNOVATIONMeatingthe needRefrigeration revolutionised our meat anddairy industries a century ago. Now, new Kiwitechnology is set to shake things up againmanager Vaughan Whyte says thesystem provides a process fordelivering chilled beef, lamb, porkand chicken from the producerto the supermarket shelf withreduced packaging, handling andtransport costs and improvedsafety and food quality, as wellas assured traceability.The Auckland processingfacilities, set up to serviceProgressive Enterprises’ North(L-R) Julian Beavis, CEO, FoodCap; ErinWansborough, regional manager, CallaghanInnovation; Vaughan Whyte, sales andmarketing manager, FoodCap.Foodcap International’swork has been calledunique, exciting andrevolutionary. The companydesigns and develops capsulatedfood supply chain systems andtechnologies that dramaticallychange the dynamics of storingand transporting temperature-sensitive, short shelf-life productssuch as meat.Foodcap sales and marketing
  16. 16. IDEALOG.CO.NZ/BUSINESSPLANIsland supermarkets, contain thetype of automation you’d find ina car assembly plant. Robots,conveyor belts and cranes helpreduce human contact with themeat and improve consistencyand safety.“There’s really no other meatprocessing facility in the worldlike it in terms of the level ofautomation and the way it’sdesigned,” says Whyte. “Thefootprint is half that of equivalentmeat processing plants and thelabour requirement is 40-50percent less. We’ve eliminated allthe packaging that’s typically used.”To help continue its R&Dprogramme, Foodcap appliedfor funding through the formerMinistry of Science andInnovation – a project nowadministered by CallaghanInnovation – and received aninitial grant of $248,000.Callaghan Innovationinvestment manager Simon Smartsays Foodcap has a technologythat could revolutionise theentire fresh chilled primal meathandling steps in both the domesticand export supply chains.“This investment ticks all theboxes for us – the potential for thecompany itself to growsignificantly, a huge spill-over forthe meat industry, and also eventhe dairy industry. It’s a reallynovel New Zealand technologyand there are huge opportunities.The first step is to develop thetechnology further, and we’rehelping fund it to the next stage.”With input from CallaghanInnovation, Foodcap has defined afour-year R&D programme. Thefirst step means making significantchanges and improvements to itsexisting technology in order todevelop a new capsule prototypefor the export market.“This project is to redevelop thetechnology so it’s more robust andcan be easily and cost-effectivelyintegrated into an existing meatplant without redesigning theentire plant,” explains Whyte.“It’ll be a very modular systemthat can be plugged into anexisting system and be used toeither transport meat from aslaughter plant to a secondaryprocessing plant, within a meatplant to reduce the single-usepackaging, or to export freshchilled meat internationally.”While it hopes to obtain moreR&D funding in the future, Whytesays it’s not just the financialassistance that’s been valuable.ADV2013“Working with Simon andCallaghan Innovation has broughtmany benefits,” Whyte says.“They’ve introduced us toa network of new companieswith specialised or uniquetechnologies, skills and science.“We have a large R&D team thatincludes many external parties,but we’d reached a place wherenone of them had the specificknowledge or technologies weneeded. Simon put us in touchwith a group that can help us,which is really valuable.”Smart says that’s typical of thework Callaghan Innovation doeswith companies.“It’s not just about giving themmoney, but also connecting themwith consultants, R&D providers,IN BRIEFFormed in February 2013,Callaghan Innovation is astand-alone Crown Entity thatworks to drive innovation andcommercialisation of New Zealandproducts and services by providingboth funding and advice forresearch and development.Callaghan Innovation’s advice andfunding is helping FoodcapInternational develop and refine itsunique meat processing andpacking technology that couldrevolutionise our meat and dairyexport industries.CONTACTFor more information, contactCallaghan Innovation,0800 422 552,www.callaghaninnovation.govt.nzTEXTDEIRDRECOLEMANPHOTOGRAPHYROBINHODGKINSONCUTTING-EDGE COLLABORATIONRobots are set to take over some of the more specialised and labour-intensive processing jobs, providing significant productivity gains for ourall-important lamb export industry. Ovine Automation Ltd (OAL), aresearch consortium of meat industry companies and various technologyproviders, was formed in 2009. OAL brings together nine industryshareholders, with MIRINZ Inc (jointly owned by the MIA andBeef+Lamb) providing initial funding and co-funding from the Ministryof Business, Innovation and Employment.A further R&D grant has helped develop and commercialisetechnologies such as automated evisceration, brisket cutting, Y-cuttingand gas de-pelting systems, to help streamline slaughter-board production.The science, engineering and technology-delivery group of CallaghanInnovation has been providing expertise and advice to push thesedevelopments along. Callaghan Innovation sector manager Geoff Batessays OAL is an excellent example of key players collaborating to achievereal gains for the industry as a whole.“This project works because there’s so much industry involvement andbuy-in,” says Bates. “One of the challenges of bringing science into thereal world is getting all parties to work together. It takes a lot of desire oneveryone’s part to make it happen. Our role is to facilitate that process.”Richard McColl from OAL says the consortium has set a precedentand provided a step change for the industry.“Other countries have spent a lot of money on automation in the porkand poultry industries, but what we’re doing for the New Zealand ovineindustry is unique in the world,” says McColl. “The work we’ve done withthe science, engineering and technology-delivery group of CallaghanInnovation, Geoff Bates and the team has been excellent. They’veadvanced a lot of the ideas we’re now bringing into commercialisation,and in my view, providing the business case supports it, the industry willtake up this technology.”and other investors or customers.We try to point them in the rightdirection if they have a need.”The grant application processwas also useful for Foodcap interms of its strategic planning.“Completing the applicationhelped to clarify our thinkingaround prioritising our R&Dprogramme. The monthlyreporting process also makes usanalyse what we’ve achieved, andwhat we’ll be working on next.”Those next steps could bemeeting international demand.Foodcap has had significantinterest from Walmart abouttransforming the multinational’smeat operations in severalcountries, and inquiries fromthe UK and Ireland.
  17. 17. The scale and competitiveness of thefood and beverage market means thatinnovators and entrepreneurs with an ideato commercialise will almost certainly needsome governmental and institutional helpThe utensilsCHAPTER THREE94/IDEALOG.CO.NZIDEALOG GUIDE TO FOOD INNOVATIONPHOTOGRAPHYROBINHODGKINSON,COURTESYOFTHEFOODBOWL
  18. 18. MAY-JUNE 2013/IDEALOG /95and you have some very big players there.”Here are some examples of the handy toolsyou can use to get cooking in this sector.Institutes of innovationCallaghan InnovationFor those of you who missed the latestreincarnation of one of the government’sflagship innovation organisations, the creationof Callaghan Innovation in February broughttogether the former Crown Research InstituteIndustrial Research Limited (IRL) and theMinistry of Business, Innovation andEmployment’s business investments team.From July 1, New Zealand Trade andEnterprise’s Lean Manufacturing programmewill be part of Callaghan Innovation andAuckland’s Food Bowl will also beincorporated, subject to negotiations withits current owner, Auckland Tourism, Eventsand Economic Development.With 400 staff and offices in Auckland,Wellington and Christchurch, the neworganisation is on a mission to acceleratethe commercialisation of innovation in NewZealand. It is named after distinguished scientistSir Paul Callaghan, who passed away in 2012.One of the key areas of Callaghan’s researcharound the food and beverage sector is thesearch for value-added extracts from primaryproducts like honey, shellfish and fish thatmight be applied to the burgeoning nutraceuticalsector. The organisation is also working onimproving automation processes, and recentsuccesses include a mussel-shelling machinedeveloped with Sanford by its KanDoInnovation offshoot and working with themeat industry’s Ovine Automation to developmachines for speeding up meat processing.Callaghan Innovation also invests $115million each year into Kiwi businesses in theform of government grants.The organisation has specialist expertisethat could help you identify and quantifynatural extracts from a wide range ofnatural products, and to develop these extractsas potential ingredients for nutraceuticals andother functional foods. Callaghan Innovationalso features one of only three laboratoriesworldwide that offers a full carbohydrateanalysis facility and extensive fermentationand microbiology capabilities.kk www.callaghaninnovation.govt.nzAgResearchAgResearch is taking a close look at how wecan continue to improve meat, fibre anddairy production. Recent successes includedevelopments in non-chemical pesticides andthe first cow bred to provide high-proteinhypoallergenic milk. AgResearch is thereto help if you have an opportunity to exploitor a problem to solve relating to the value,productivity and profitability of NewZealand’s pastoral, agri-food andagri-technology sector.kk‘The food industry isexpanding, however I thinkit varies depending on thesector. In the kiwifruit, dairyand meat industries it’sprobably stronger than ever,with government agenciesstimulating a level of researchand innovation that wehaven’t seen for some time’RICHARD TEMPLERAccording to the MBIE’s Lisa Barrett,“Innovation in the food industryis much more about productdevelopment, packaging and branding than itis about basic science. The food industry allaround the world has high rates of innovation,but firms are generally relatively smallinvestors in basic science.“However, the food industry is a heavyuser of innovation developed in other sectors.This might be in the machines used to processand package foods, new materials forpackaging, chemicals or compounds that canenhance shelf life or processes that mightreduce the need for high levels of sugars,fats or salt. In statistical terms foodmanufacturing is classified as low technology,but in terms of the machines and processesapplied, it is highly knowledge-intensive andhighly technical.”Callaghan Innovation’s Richard Templer saysit’s also important to note that the level ofinnovation and research still varies from oneproduct area to another.“The food industry is expanding and there’smore research and development. However,I think it varies depending on the sector. In thekiwifruit and dairy and meat industries it isprobably as strong or stronger than it has everbeen, with government agencies stimulatinga level of research and innovation that wehaven’t seen for some time.“In the smaller niche areas you see a lot ofresearch into honey. It’s a bit more patchy inthe consumer-facing foods because things aremore competitive internationally in that spaceBio-processing atCallaghan Innovation.
  19. 19. 96/IDEALOG.CO.NZIDEALOG GUIDE TO FOOD INNOVATIONPlant and Food ResearchPlant and Food Research is all about addingvalue to fruit, vegetable, crop and foodproducts. It has more than 900 people basedat sites across New Zealand, as well as in theUSA and Australia. The organisation isperhaps best known for its research work oncreating the hugely successful ZespriGOLDkiwifruit, but it has research projects acrossa wide range of crops and also works onseafood. Recent projects have includedresearch into the benefits of eating applesto combat inflammatory diseases, and thecontrolled release of a wasp species fromKazakhstan to combat codling mothinfestations in orchards.kk researchThe Ministry of Business, Innovationand Development’s Food andBeverage Information ProjectThis five-year project began in 2011 and isproducing a series of comprehensive reports oninvestment opportunities in major sections ofthe New Zealand food and beverage sector. Italso provides a directory of more than 1,000relevant New Zealand companies.kk med.govt.nzGovernment fundingPrimary Growth PartnershipThe Primary Growth Partnership jointfunding scheme works in pastoral, arable,horticultural, seafood and forestry productionas well as food processing. The basic idea isthat as long as a qualifying industry can comeup with at least half of the investment cash,with a minimum of $500,000 excluding GST,the government will chip in the rest, so far tothe tune of $190 million since 2009. Recentbeneficiaries have included the selectivebreeding of Greenshell mussels, ways ofgetting more value from a beef carcass andhigh-performance manuka plantations.kk mpi.govt.nzAcademiaFood research at AUTWith food remaining such a major employerfor research graduates it’s no surprise that NewZealand has an active academic sector geared upfor its needs. The major players are AUT, Masseyand Otago University, with many smaller relateddepartments in other institutions.At AUT food science has a strong presence,incorporating research in food chemistry, foodmicrobiology, food technology and specialistresearch into biofilms. (Find out more aboutAUT from the folks involved on page 100.)Massey University’s Food and ScienceTechnology division undertakes research acrossa range of areas, including dairy, meat and‘post-harvest’. Publications and staff expertisecover off everything from the underlying foodscience and chemistry to processing of the finalproducts with the university’s own FoodLaboratories and Food Pilot Plant.Meanwhile, the University of Otago’s FoodScience Department offers commerciallyfocused research and consultancy services at itsProduct Development Research Centre. And atits Sensory Science Research Centre there’s aspecialist team that leads training and researchin taste, smell and sensory irritation, which arefundamental to product choice and acceptability.kk FoodBowlThe $18.1 million FoodBowl food innovationfacility gives established companies, startups,chefs and wannabe food entrepreneurs accessto state-of-the-art food and beverageequipment. Here they can test ideas, refineprocedures and hone existing productionprocesses in a low-cost, low-risk andsupportive environment that complies withthe highest national and international qualityand hygiene standards.kk Zealand Trade and EnterpriseNZTE is there to help you get ready to export,develop knowledge and expertise, accessinternational networks, explore exportmarkets and find funding assistance. Thereis even a series of specific food and beverageresearch reports on a range of key markets,as well as reports covering specific areasof sustainability.kk nzte.govt.nzFoodbowl’s Auckland premisesand (right) chairman Tony Nowellwith Stuart Walker, who wasacting CEO in the early stages.
  20. 20. MAY-JUNE 2013/IDEALOG /97make sure you have the best marketanalysis at your fingertips.foodandbeverage.govt.nzExtensive and detailed business-focused information on New Zealand’sleading export industry→If food & beverage isyour bread & butter…The Food and BeverageInformation Project
  21. 21. 98/IDEALOG.CO.NZIDEALOG GUIDE TO FOOD INNOVATIONExperimentingwith the recipeCHAPTER FOURTo get a taste of the kind of workthat our universities are doing, we disguisedourselves as students, got up in time forelevenses, stuffed an old rucksack full ofelectronic devices and books, and shambledaround AUT’s Food Science department
  22. 22. MAY-JUNE 2013/IDEALOG /99John Brooks, Professor of FoodMicrobiology at AUT University, explainsthe pitfalls of building a business aroundMum’s secret recipe (via his“Mum has for years made a special dish orsauce and the whole family enjoys it. Perhapsit’s a traditional dish made back in ‘the oldcountry’ and an enterprising emigrant wantsto make it commercially in the adoptedcountry. All that is necessary is to scale upproduction, right?“In some cases, this might be so. However,there may be hidden pitfalls.“Perhaps the most important differencebetween Mum’s cooking and a commercialoperation is the timing – Mum cooked thedish or sauce and served it straight from thekitchen, whereas commercial manufactureinvolves packaging, storage, transport, retaildisplay and purchase. The shelf life must alsoleave time for the consumer to store it at homebefore consumption.“How about putting the sauce into a glass jaror a plastic pouch? This introduces a newvariable not present in the original. I wantanswers to some additional questions beforeI’ll agree that the product is safe.“For example, what is the pH of the product– acid or low acid? This is not just aboutflavour. If Mum poured a low-acid sauce overyour food and you ate it straight away, therewas no problem. But if we now wish to sell itin an hermetically sealed container, it maysupport the growth of clostridium botulinum.“Even if the raw materials are heated duringpreparation, spores will have survived and cangerminate and grow, producing botulin toxinduring storage. There may be no apparentchange in the product, but it could be lethal. Inthe case of a low-acid product, a full ‘12D’process must be applied. This process has to befiled with the regulatory authority, followed forevery batch and be under the control of aregistered person with full records kept.Special equipment, capable of heating theproduct to well over 100ºC, is needed, too.“What about stability? Will the sauce separateduring storage and transport? A stabiliser mayneed to be added to prevent separation and thusensure that it looks good to the consumer. It’snot a safety issue, but dissatisfied customers areunlikely to be repeat buyers.‘We need to come up withsomething other than driedmilk powder. On the meat sidewe basically still sell large bitsof dead animals. Can’t wemake something rather morespectacular out of them?’JOHN BROOKS“What shelf life should we put on the label?Properly conducted storage trials are essential.For that matter, what are the labellingrequirements? You can’t just put a picture ofthe product onto the label and call it ‘Mum’sSpecial Pasta Sauce’; in most jurisdictions,there are very specific requirements. Theusually include the name and address of themanufacturer, as well as a list of ingredients –possibly with warnings about potentialallergens. These requirements even extend tospecifying the size of the type that’s requiredfor the nutrition information label.“Not least is the requirement for theproduct to be manufactured on suitablepremises. These premises must be inspectedand it is unlikely that the home kitchenwill be approved as suitable for even minorcommercial production.PHOTOGRAPHPHOTONEWZEALAND/TERRYHANN
  23. 23. 100/IDEALOG.CO.NZIDEALOG GUIDE TO FOOD INNOVATION“In New Zealand, food manufacturers musthave a suitable food safety programme in place.New legislation will require this programme tobe based on an assessment of risk posed by theproduct and process, and the programme mustbe documented and detailed records kept, sothat the premises and process can be audited.“There are many wonderful products on themarket today that had their origins in Mum’skitchen in some part of the world. To avoidtears, the budding entrepreneur should seekthe advice of a professional food technologistbefore putting the product on the market.”FOOD SAFETY FIRSTProfessor John Brooks has spent more than30 years working to improve the understandingof food microbiology and help reduce theincidence of food-related illness. It’s a healthand safety issue, but also a crucial commercialone for New Zealand’s food and beverageindustry to compete overseas.As Professor of Food Microbiology at AUT,Brooks consults on microbiological problemsfor a range of companies and carries outresearch across New Zealand’s dairy, seafoodand biomedical sectors. Often, his workinvolves dealing with one-off contaminationrisks that need to be identified and headed off.But he also works on longer-term issues suchas biofilms in food, aquaculture and medicine.These bacterial films are found growing onsurfaces in diverse environments including thehuman body, streams, medical apparatus andfood processing equipment. Brooks’ research ishelping to model the biofilms’ behaviour inindustrial plants, such as milk evaporators.

“When dairy companies have a problem likethis they probably don’t want to talk about it,but it is common across all of them,” heexplains. “Our teams are investigating somenew ideas, but it’s difficult to know whetherNew Zealand companies are that far ahead ofour competitors.”Brooks says Fonterra has done a lot of goodby breaking down milk into its molecularcomponents and coming up with all sorts ofnew food ingredients, but what we really need,is genuinely new products across the board.“New Zealand needs to come up withsomething else other than dried milk powder,”he says. “And on the meat side we basicallystill sell large bits of dead animals – can’t wemake something rather more spectacular outof them?”While doing his bit to move that conversationforward, Brooks is also nurturing the nextgeneration of food scientists to help innovatefor the sector.MEET A MEATRESEARCHEROwen Young, Professor of Food Science atAUT’s School of Applied Sciences, hasstrong links to the meat industry. He has atrack record of research in flavour chemistry,particularly of sheep meat, the developmentof innovative meat products, and theinvention of a method for the rapid and earlyprediction of meat quality in slaughterhouses.This work has expanded at AUT intosheep meat and seafood products, with aparticular emphasis on preserving molluscs.Another major area of research is thedevelopment of New Zealand-uniquealcoholic drinks, with a focus on spirits.The group has also developed a novelmethod to make goat’s milk productstaste much less goaty, and therefore moreacceptable to a wider market.Other recent and current research topicsinclude development of a gluten-freecommercial bread, food allergen control infood processing, flavour problems in rolledoats, applications of kiwifruit enzymes inenteric health, eel aquaculture, definingcommercial meat cookingprotocols, evaluation of novel foodextrusion and distillation equipment.‘Academia is fundamentallyuseful in food and beverageresearch in two ways: Basicresearch with no obviousapplication, and appliedresearch on industryproblems and productdevelopment. Both shouldoccur simultaneously withina university, and thepractitioners should becontinually in dialogue’OWEN YOUNG
  24. 24. MAY-JUNE 2013/IDEALOG /101NUTRACEUTICALSWhen Hippocates said, “Let food be your medicine andmedicine your food”, it was unlikely that he had foreseenanything quite like modern nutraceuticals. These aredefined as “a food or food product that reportedlyprovides health and medical benefits, including theprevention and treatment of disease”.In practice, nutraceuticals can include anything fromwitches’ cauldron-type animal parts up to and includingdeer penis, oils and such squeezed out of fish, and abewildering array of botanicals, bee products, fruits andcereals. Basically, you name a food and there’s somebodycutting it up or boiling it down to its active components,and reformulating these into more food or health products.“Health supplements, whether in a food or a tablet,are commercialised in a sometimes uncomfortablespace between consumer protection legislation andpharmaceutical regulation,” says AJ Park’s Anton Gibson.“The nutraceutical market is challenging, because thebusiness model may not justify the expense of doingclinical trials. This necessarily excludes operating ina pharmaceutical market in the space defined by thelocal regulatory regime about the types of health claimsthat you can make about ingredients in products.”Gibson points to the costs of development and theregulatory uncertainties as reasons why this remainsa difficult market to work in. But it is nonetheless anexpanding one, with the worldwide value estimatedto be around the US$200 billion mark by 2016.Vitaco ( is one Australasian company thathas found success in this area. It now employs nearly500 people and distributes to more than 30 countriesin five continents. The company’s Nutra-Life rangeincorporates Biolane, an extract from New Zealandgreen-lipped mussels, which Vitaco claims supports jointand muscle tissue health. Auckland-based Good Health( also produces a huge range of healthproducts and supplements that are exported to morethan 20 countries around the world.Food &Beverages54%Other products46%$59$58$56$35$34$34$24$17$17$11$11$10$9$7$7$5$4$2$2$2GermanyFranceNetherlandsSpainItalyBelgiumUnited KingdomNew ZealandDenmarkChileIrelandAustriaNorwaySwedenSwitzerlandPortugalJapanIcelandIsraelFinlandTotal food and beverages export value: New Zealand vs its peersFood and beverages as a percentage of New Zealand’s total export valueIn New Zealand, food andbeverage exports have trebledover the past 17 years.US$bSOURCEUNCOMTRADEDATABASE(CUSTOMJOB);CORIOLISANALYSIS,COURTESYOFTHEMINISTRYOFBUSINESS,INNOVATIONANDEMPLOYMENT
  25. 25. IDEALOG IN ASS OCIATION WITH AJ PARKWeaving traditionwith innovationIts Māori-based values are a unique selling point for one Kiwi foodand wine exporter, so protecting its intellectual property is vitalKono NZ is a premiumfood and beveragecompany that’s takingits innovative products andtechniques underpinned bytraditional Ma-ori values tothe global market. With threedivisions producing wine, fruitand seafood, it has mussel andoyster farms, vineyards andorchards throughout the NelsonMarlborough region, fromwhere it exports to more than25 countries.With 300 staff and farming 530hectares of land and sea, Konocame into being in 2011, when allthe food and beverage businessesof Wakata-Incorporation wereconsolidated under one brand.“A kono is a traditionalwoven-flax basket used to servefood,” says Wakata-chairman PaulMorgan. “We’re a Ma-ori businessso it’s essential we have a brandthat reflects what’s important tous as an organisation and capturesour core values.”Wakata-had previously beenusing the Kono brand for someof its wine and mussel products.The brand now covers KonoHorticulture, Kono Seafoodand Kono Beverages, includingthe internationally awardedTohu wine.“We needed a powerful masterbrand across our differentdivisions. Kono is currently themost widely exported Ma-ori brandand we want to grow it, introduceother products and work withother Ma-ori businesses with newIncorporation secretary Kerensa Johnston andAJ Park senior associate Lynell Tuffery Huria.
  26. 26. IDEALOG.CO.NZ/BUSINESSPLANfood products in the future.”Intellectual property expertsAJ Park have been advisingWakata-for many years andassisted Kono after theirrestructure with IP protection.Senior associate Lynell TufferyHuria advises the organisationon appropriate and cost-effectivetrade mark protection for Konoin its various markets.“My role involves identifyingthe markets they are entering andgetting protection there, whilereviewing current levels ofprotection and ensuring they’readequate,” she says. “It’s a uniqueMa-ori-values-based organisationso we need to consider this factorwhen advising.”Kono’s export strategy is todevelop both existing and newcustomers, as well as introducenew products to those markets.It recently began farming flatoysters and wants to take theseto its mussel buyers. Anotheremerging brand is Aronui wine.“It hasn’t been an easy road toget trade mark protection,” saysTuffery Huria. “That’s always alesson for anyone entering newmarkets – just because you canuse your brand in New Zealand, itdoesn’t mean you can go aheadand use it overseas.”The US, Kono’s main market,buys Kono wine, mussels andfruit. Europe and Asia are alsosignificant markets, with majorcustomers in Hong Kong, Taiwanand Korea.“It’s vital that our IP isprotected in all those countriesaccording to our strategy todevelop new customers,” saysMorgan. “Doing this is expensive,but we target protection to areaswhere we have existing tradingrelationships and where we seepotential for future productsgoing forward.“Anyone dealing in theinternational marketplace needsto have good IP protection inplace. AJ Park has given us greatadvice. They’re experts in theirfield and we rely on theirknowledge.”Paradoxically, it’s beenprotecting Wakata-’s brands inNew Zealand that’s posed thebiggest challenge.“Ma-ori words are more difficultto register here than overseas,”says Tuffery Huria. “TheIntellectual Property Office hasraised objections based on theADV2013literal meanings of certain Ma-oriwords. We’ve had to argue thatthis isn’t relevant because thewords have holistic or esotericmeanings that are more relevant.“These arguments have helpedget the trademarks registered. It’svery novel for a Ma-ori-basedorganisation to use Ma-ori words,imagery and means as part oftheir branding message, andalso to seek IP protection forthose elements.”Kono is also moving into theinnovation space, investing innew processes, machinery,environmentally sustainablepractices, and products suchas flat oysters and hops. Theorganisation is also doing someresearch work with IndustrialResearch Ltd.“The strategy moving forward isensuring that Kono can captureall that IP as it creates newmachinery or products, andlooking for opportunities forpatent, copyright, and other formsof IP protection so they can gainthat competitive advantagethrough innovation,” she says.“I’ve worked with Kono for along time and seen them growinto an organisation that’s uniquein its size and its market position.Because Kono are different to ourtraditional clients, we’ve had tothink laterally to come up withsolutions for them, but it’s beenreally satisfying.”IN BRIEFKono NZ is a Nelson-basedMa-ori organisation thatexports its wine, seafood andfruit to 25 countries, includingthe US, Australia, Hong Kongand Korea. It is currently themost widely exported Ma-oribrand and is now moving intothe innovation space,developing new technology,processes and environmentallysustainable practices aroundits products.Intellectual property expertsAJ Park have been helpingKono protect is trademarksboth locally and internationallyand plan for future product andmarket expansion.CONTACTTo find out more, contact:Lynell.TufferyHuria@ajpark.comwww.ajpark.comTEXTDEIRDRECOLEMANPHOTOGRAPHYOLIVERWEBERKono is moving into the innovation space,investing in new processes, machinery, andenvironmentally sustainable practices.
  27. 27. Food innovation has less to do with inventingnew edibles – it’s about presenting what we have ina way that’s authentic, credible and engaging.And it pays to call in the pros to help youcreate that vital point of differenceThe special sauceCHAPTER FIVE104/IDEALOG.CO.NZIDEALOG GUIDE TO FOOD INNOVATION
  28. 28. Strategic design practice Designworksincorporated the story of how, whereand why Monteith’s ciders werecreated into the branding. This givesthe a sense of purity, assuring thecustomer that what they’re gettingcomes ‘straight from the orchard’.New Zealand has a great reputationfor its culture, scenery andenvironmental assets with KonoNZ, Regal Salmon and Silver FernsFarms enjoying export success.MAY-JUNE 2013/IDEALOG /105The pace and extent of change in thebasic nature of food is intimatelylinked to what our culture and ourmetabolisms will accept. This makes thedevelopment of entirely new food groups, mealpills or inhalable nutrition an extremelyexpensive and time-consuming business thatrules out most ordinary firms. So in effect, a lotof what we are left with in terms of innovationis about how we present what we have.“Many of these stories are more about thecreativity of the people, and the way they selland formulate their product with a flavour andvisual presence that is relatively familiar butsold in a slightly different way,” says AntonGibson. “Many of the interesting aspects of thefood business come down to the artistry withwhich it is sold.”This has gone through various stages ofevolution. First it was mainly about makingsure the food arrives in an edible condition.Then we got carried away with snazzypackaging. And now we are into the modernfull-power realm of holistic brand design thatis inhabited by the likes of the strategic designpractice Designworks.The first thing to note is that if you only starttalking to a team like theirs once you’ve alreadydeveloped your product, you are probablyleaving it a bit late.Michael Crampin, group head of creativestrategy, explains: “We used to be at the end ofthe food chain, more or less just packaging itup, but we are now much more intrinsicallyinvolved. Traditionally, with companies andconsultancies like ours, the client and consumerwere separate from the work that was done. Formost part there’s now less of a demarcation. Theterm is ‘co-creating’ and it is the most effectiveway to work. There has historically beena culture of brand management, which isessentially managing what you’ve got. Nowit’s more thinking about what you could have,but you don’t know what that is yet.”The sooner you can start a branding exercise,the more coherent the result will be, and inCrampin’s view this applies particularly to foodand beverage at the moment, because almostthe whole world’s accelerating interest in foodcan be boiled down to one word: authenticity.“Authenticity is the Holy Grail of branding,in food and beverage even more so. The wholething is based on proof points – authenticity ofsource, traceability and purity.”What might have begun as a need for qualityassurance and safety now goes way beyond it,into creating an engaging story of people and‘Authenticity is the Holy Grail ofbranding, in food and beverage evenmore so. The whole thing is based onproof points – authenticity of source,traceability and purity’MICHAEL CRAMPIN
  29. 29. IDEALOG GUIDE TO FOOD INNOVATIONplaces around a product that attractsconsumers, much like wine vintages andregions have been doing for millennia. Thedesigners’ job is to align the product withwhere the enthusiasm for food and beverageis heading.Designworks is looking to the rapidproliferation of farmers’ markets and ‘growyour own’ gardening culture, as well as thepopularity of the likes of Jamie Oliver indemystifying and democratising what goodfood really means.Noel Blackwell, group head of strategy, says:“It has become the new interior design, whereeverybody has become an expert. People canhave much more coherent conversations aboutwhat is going on with their food.”This translates into a drive for lessostentatious branding, which breaks downthe barriers between the consumer and thecompanies and allows them to engage in moremeaningful relationships.Crampin adds: “It’s about the back labelbecoming the front label. What was previouslya little detail, like where it comes from, is nowcentral to what it is about.”OLD MILK IN NEW BOTTLES?The latest ‘light-proof’ milk packaging innovation from Fonterra under itsAnchor brand is a classic combination of scientific research and marketing.The scientists say that light exposure impacts the freshness of milk, while themarketing folks carve out a shelf niche and packaging look for the light-proofsolution, and according to market research, people prefer the taste from thenew bottles. It’s early days, so it will be interesting to see how muchdifferentiation this new move provides.‘Food innovation hasbecome the newinterior design, whereeveryone has becomean expert. Peoplecan have muchmore coherentconversations aboutwhat is going onwith their food’NOEL BLACKWELL
  30. 30. AUTHENTICATION AND CERTIFICATIONGoing into the complex world of comparing the huge variety of independently auditedeco labels available in the food and beverage sector would require another issuealtogether, but it’s safe to say that consumers are increasingly looking out for them.According to industry estimates, sales of organic food and other organic productstopped US$54.9 billion by 2009, and research by global market researchers Marketsand Markets forecasts that the global organic market will be worth US$104.5 billionby 2015. Also in 2009, an estimated ¤3.4 billion (NZ$5.9 billion) was spent onFairtrade products, and big international players like Cadbury are now on board.The use of these certifications, alongside sustainable packaging certified byorganisations like the Forest Stewardship Council and the Rainforest Alliance, aswell as statements on carbon emission like carboNZero, can provide access to theserapidly expanding niche-conscious consumer markets.They are also helping with access to major distribution chains, partly because theyare increasingly selecting produce with these values in mind. Another reason is thatthe process of acquiring third party certifications demonstrates the sort of supplychain control that gives the major chains confidence they can avoid any repetitions ofmishaps such as the UK horse meat debacle.BRAND NEW ZEALANDThere is no doubt that New Zealand has a strongbackground story to tell, especially when it comesto food and beverages.Richard Templer says: “You only have to look atthe number of times people attempt to steal thebrand with images of New Zealand or silver ferns onproducts that are not from here. That is because ofthe strong reputation for quality and safety.“It’s a very strong brand.”But as you will oftend hear from design experts,and as you will have seen in a recent Idealoginterview with Geoff Ross and The Business Bakeryteam (Idealog #44), it can’t be relied on as the onlystory you tell.Blackwell agrees.“We have all the God-given stuff about beingremote and temperate, whether you are talkingabout sunshine hours or water. It’s a pretty goodfoundation but you have to do something with it.“The story that needs to be told is more about thepeople who live in that land and how they have beeninspired by it.“You can never lose the qualities of both the landand people’s side of the story.”Highlighting provenance andeco-friendly practices playeda key role in marketing Kiwimeat manufacturers Silver FernFarms as a reputable brand.J. Friend and Co’s BeechwoodHoney Dew and Viper’sBugloss Honey arecarboNZero certified.MAY-JUNE 2013/IDEALOG /107
  31. 31. IDEALOG IN ASS OCIATION WITH DESIGNWORKSFrom thesourceConsumers aren’t drawn to products – they’redrawn to stories and experiences that connectthrough honesty and authenticityTotal traceability and transparency of origin is now essential to every seriousplayer in the premium food category. Designworks has helped Silver Fern Farms(above) tell a story reaching from plate to pasture, to connect with consumers.The food and beverage sectoris changing. The search forauthenticity – knowing theorigin and the owner of what we’reconsuming – is driving a completereframing of how companies enticeus to buy their products. Taste andquality alone aren’t enough;consumers require transparency,right from source.What might once have beena back-story is now front andcentre, says Michael Crampin,head of creative strategy atDesignworks. Total traceabilityand transparency of origin isessential to every serious playerin the premium food category.Silver Fern Farms is a case inpoint. With Designworks as apartner, it has told a storyreaching from plate to pasture –one that’s connected withconsumers so successfully thatit’s reinvented the way companiesapproach the category.“Consumers want to knowwhere it’s from, how it’s made, andwhy they can trust it,” Crampinsays. “Success for a brand is whenthe origin is expressed withintegrity to bring the story to life.”Designworks combinesstrategy and creativity to helpits clients make their mark onthe marketplace.“It’s not about branding intraditional terms – it’s moreabout leading the category andestablishing a new standard thatexceeds consumer expectations.”Designworks’ recent work forSilver Fern Farms and Monteith’sBrewing Co. illustrates this wider,richer offering, with new formatsand ways to prepare, share andexperience products.Starting at the source, proofof care and commitmentThe breadth and depth of theSilver Fern Farms New Zealandorigin story supports a brand thatallows flexibility and shiftspositioning for end user andinternational markets.Everything in the brandreferences back and takes its truthfrom this story. The look and feelhas grown from the initial masterbrand core to today’s more artisaninflections – premier selection forfoodservice, restaurant qualitycuts in supermarkets.Silver Fern Farms has also beeninnovating in the supermarketwith branded, vacuum-packed,fine-trimmed cuts that lock in thefreshness of a better eatingexperience, and collaborating
  32. 32. IDEALOG.CO.NZ/BUSINESSPLANADV2013IN BRIEFDesignworks is a leadingstrategic design practice thatworks with New Zealandbrands across all sectorsto help them succeedinternationally. Designworksrecently helped iconic Kiwibrands Monteith’s beer andSilver Fern Farms createcomplete consumerexperiences and weaveauthentic stories around theorigins of their products.CONTACTTo find out more, contactJef Wong, head of design, Monteith’s brand is about creating a more rewarding experience with thebeer as the hero. Designworks helped the beer brand to amplify the uniquequalities of its different beer styles while demystifying craft beer as a category.with chefs to hone in on theperfect cut and pitch for thespecialist food service offering.Recently their storytelling hasbeen taken to new levels withthe boutique offerings of SilereAlpine Origin Merino, a jointventure with The New ZealandMerino Company.“By rethinking Silver FernFarms’ role in the category andhow it presents its story, we’vecreated an emotional connectionthat, in effect, takes you up themountains where this truefree-range product was created,”says Designworks head of strategyNoel Blackwell.A creative collaboration saw topNew Zealand chefs feature SilereAlpine Origin Merino on theirmenus, so consumers could beginto understand the product theywere eating and the storysurrounding it.“The result is a truly globalportrayal of the origin aspects ofour high-quality red meat andthe credible promise of anunforgettable eating experiencethat’s 100 percent made ofNew Zealand.” Keeping the explorerspirit aliveMonteith’s focus is on makinga wider range of beer moreinteresting and relevant to a wideraudience, says Designworkscreative director Jef Wong.“The goal was to amplify theunique qualities of different beerstyles while demystifying craftbeer as a category, helpingconsumers get over the ‘craftis difficult’ hurdle,” he says.“Monteith’s wants to championthe craft beer category by makingit less technical, and insteadgiving it more character andmaking it fun.”The Monteith’s work was basedon creating more connections tothe brand’s origin and spiritualhome, the West Coast. A newbrewery built on the longstandingsite is designed as somewherevisitors can experiment, brew andtaste beers ‘live’.The recent launch of therefreshed Monteith’s range wasa way to deliver the origin storywith greater accessibility andenergy, and to meet a new demandfor beer that’s fresher, lighter andbrighter in character, says Wong.“Single Source was conceivedwith a desire to have a purerexpression of our product.“As with wine, the terroir wascompletely controlled andtraceable, from batch to field tobrewer to climate – somethingthat’s totally unique in the beercategory.”The completeness of theexperience is key for Monteith’s.The brand is about creating amore rewarding experience withthe beer as the hero – from in-barfood matching and events such asThe Monteith’s Beer and WildFood Challenge, to the rituals thataccompany the pour, the overallfeeling in-bar, and growing theappreciation of different beertypes. Monteith’s commitment toexperience has driven the new barformat, where consumers canexplore and appreciate beer stylesin a more contemporary,accessible, vibrant environment.The results are clear: Monteith’ssales are growing despite anoverall decline in the NewZealand beer category.
  33. 33. Show and tell Food and beverage brands getting it right, according to our experts} MoaAnton Gibson picked outthe Business Bakery’s use ofwine techniques in brewingand marketing asa great example of cross-referencing methods acrossdifferent products.~ InnocentNoel Blackwell says: “Innocent is a big brand built onthe humble origin story of its founders, and looks like itwas made by your neighbour.”| Antipodes waterMichael Crampin says of the Whakatane-basedpremium water brand: “It has the combination ofhow it is presented, the minimalism of the delivery.The back story becoming the front story. It sums upNew Zealand best without having to rely on clichésand nationalistic branding. It’s one of those we wishwe had done.”110/IDEALOG.CO.NZIDEALOG GUIDE TO FOOD INNOVATION€ FarroCrampin describes the Auckland-based chain of one-stop fresh food shops as “anamazing local example of a sense of localism and close connection to source. It has that‘democratisation’ of accessible quality. And the way it is presented is really ‘unbranding’,with the hero being the food.”| All Good BananasThe multi-award-winningFairtrade banana crusadersalso get Crampin’s vote.“It is so creative andfantastic,” he says. “Theability of businesses to havea real manifesto and because-driven. ‘This is whatwe believe and this is howyou should judge us’. It is notnecessarily new but is frontand centre now.”
  34. 34. DigestifFinal thoughtsOne question we might ask about the food andbeverage sector is this: according to research firmCoriolis, doubling the export sales of New Zealandfood by 2025 would need something like one and a half newFonterras. So where will they come from?It would also assume that we have the capital or consumerbase in this country to build businesses on this scale – andthat the sector they enter will be operating under similarparameters that created the giant food conglomerates in thefirst place.It is not clear that either is true, and it remains to be seenwhether a nation whose business culture is still largely madeup of small and medium-sized companies has the appetiteto create new behemoth-scale multinational food andbeverage companies. It is also uncertain whether the worldwill have an appetite for more of them in the future.The pressure is definitely on to feed the world andenormous money is there to be made. But the pressure is alsoon doing this in a way that is ethical, healthy and sustainable,as there is an increasing awareness among both consumersand producers that this is the only way possible.This leaves New Zealand in a fabulous position. With ouriconic environmental credentials still just about intact, andan increasing set of pioneering brands out there leading theway, the table is laid for us to put on a really great spread forconsumers in Australasia, Asia, Europe and beyond. All wehave to do is get to work.As Michael Crampin puts it: “There are perfect growingconditions in New Zealand for brilliant ideas.”PHOTOGRAPHPHOTONEWZEALAND/BRUCEJENKINS