Growth in the value of food eaten away from the home is well in excess of grocery food sales. Other trends include:
- increased demand for convenience
- shopping more frequently
- an increase in casual dining
- a lower share of income spent on food
- an increase in imported lower-priced products.
The food service and contract catering market consists of:
- industrial – serving industrial and mining companies
- commercial – generally serving service industries
- private – catering to functions such as weddings.
Getting your product into market
The services of a person or company experienced in dealing with supermarkets are recommended.
Decisions on new products for the major supermarket chains are made by central head office buying departments. They may require new line listing fees and will look for promotional strategies. Most product categories are reviewed once or twice a year.
Independent supermarkets’ buying decisions are generally on a store-by-store basis so new products must be introduced to each store. There are smaller specialist distributors which target this market with specialty products.
The advantage of selling into this market is the relative speed with which buying decisions can be made when compared to the major chains.
There is a growing range of New Zealand products on supermarket shelves packaged for home brand or other local labels. Supplying product for packaging under another label avoids expensive supermarket marketing and new product listing costs.
There are a number of mostly state-based companies offering services for imported food items – such as importing, storage, wholesale, distribution, merchandising, marketing and selling – so companies need to assess the best combination of services for their product and sector of the market.
Regulations
New Zealand goods are given preferential treatment and can enter Australia duty free under the Australia New Zealand Closer Economic Relations Trade Agreement provided they meet criteria under the Rules of Origin test.
Food Standards Australia New Zealand sets food standards for both countries.
There are few entry restrictions for products from New Zealand. A small number of products such as apples and potatoes are not permitted at all and import permits or strict procedures are required for a limited number of other products such as pet food, egg products, and fresh fruit and vegetables.
The major supermarkets and foodservice operators also have strict food safety requirements and demand suppliers have Hazard Analysis and Critical Control Point programmes in place.
Opportunities
- Changing trends and a growing concern about obesity and other health issues have created opportunities for fresh, healthy and natural snack foods.
- Research indicates that the organic industry is experiencing annual growth of between 10 percent and 30 percent. Demand exceeds supply.
