Foodstuffs North Island cuts 'out of kilter' with support local message

Friday, 15 October 2021

Tasman Bay Food Co. managing director Marina Hirst Tristram says while the supermarket food giant’s decision to cut their supply was disappointing, there’s a silver lining just over the ditch.

A move by Foodstuffs North Island to drastically cut the range of products from Kiwi suppliers is “out of kilter” with the supporting local message, says a Chamber of Commerce head.

It was revealed this week that Nelson-based Sealord products would be cut in Foodstuffs North Island supermarket shelves by 50 to 80 per cent. A number of other Nelson businesses have been hit by the product review by the grocery giant which operates the North Island New World and Pak N Save stores.

Nelson Chamber of Commerce chief executive Ali Boswijk said there was an “irony” around the decision.

“We are really encouraging people to support local, it is absolutely what we need to be doing at the moment as a region and as a country.”

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Nelson Tasman Chamber of Commerce Chief Executive Alison Boswijk Chief Executive says decreasing supply of local company products goes against everything we’re being encouraged to do during the pandemic.

She said local businesses being shut off from sales opportunities was “totally counter to everything that we’re saying at the moment”.

“It’s so out of kilter.

“It will be another blow to companies who are dealing with Covid restrictions, supply chain issues, staffing issues, there’s a whole raft of things that are impacting on businesses at the moment, large and small, so this is … another thing to deal with in a very difficult situation.”

Nelson’s Tasman Bay Food Company, which currently supplies Foodstuffs North Island with 11 products across its brands, including Juicies, Moosies, Coconut Juicies and Dr. Feelgood Frozen Pops, is having its supply to the grocery giant cut to just two products..

Tasman Bay Food Company managing director Marina Hirst Tristram said she was “disappointed” about the change. Negotiations were continuing about when they would take effect.

“About half of our grocery retail sales in the North Island are through Foodstuffs stores. This is an important part of our business and we will need to scale … production and purchasing accordingly.”

The Brightwater factory, which employs a team of more than 40, still supplies products to Foodstuffs South Island, which is separate to the North Island company, along with Countdown stores, Farro Fresh, Moore Wilson and other independent retailers, cafes and events venues.

While the Foodstuffs North Island cut was a blow, the company recently secured a contract to launch into 900 stores in Woolworths Australia with Juicies tropical.

“Woolworths Australia have been hugely supportive of Juicies. Now is the true test, and we are banking on Kiwi’s sharing their love of Juicies with their Aussie friends and family, and getting them to try some.”

Appleby Farms Ice Cream is also feeling the pinch from Foodstuffs North Island after it was advised its products had not been selected for the final range in the ice cream category.

Appleby Farms chief executive Kristy Giles said being locally owned and operated “we would have thought that was exactly what Foodstuffs North Island would have wanted to promote and offer their customers”.

She said the New Zealand manufacturing farm to plate company still had a strong presence in the South Island.

“Our [North Island] customers are calling us asking why they can’t find our ice cream.”

Foodstuffs New Zealand head of corporate affairs Antoinette Laird said it processed more than 9,000 new products each year and had to ensure there was room on the shelves for new products for customers to try.

It recently reviewed its frozen range and there were 133 successful suppliers in the frozen range review, and 93 per cent of the suppliers manufactured in New Zealand or were New Zealand owned businesses, she said.

The review process was “guided by a range of customer data and insights which have deepened our understanding of customer needs, customer loyalty, brand loyalty and customers’ willingness to buy alternative products within a category”.

Laird said the two Foodstuffs co-operatives had been in New Zealand for nearly a century.

It appreciated it was disappointing for suppliers who had products cut and it always communicated with suppliers the reasons behind the review.