The New Zealand Food and Grocery Council (NZFGC) Annual Conference was held recently in Sydney, and it was a great opportunity for industry leaders to come together and discuss the latest trends and insights in the FMCG sector. Attendees included representatives from Foodstuffs North Island Limited, Foodstuffs South Island, Woolworths Supermarkets, Costco Wholesale, and Night 'n Day Foodstores, among others.
- One of the key takeaways from the conference was the change in grocery consumer behavior over the last year and the ways it can affect ranging in upcoming category reviews. With the cost-of-living crisis afoot, shoppers are less concerned with variety and more of value. Private label goods are flourishing in household essential categories. Reduced range complexity on the shelf reduces costs in the supply chain and store operations for the retailers. It’s all about efficiency, and marginal growth is hard, so cut costs. Suppliers will have to be prepared to have tough conversations in their grocery supply agreements and must know what an acceptable outcome looks like.
- Another important trend discussed at the conference was the importance of driving innovation in the FMCG sector. Health, wellbeing, sustainable, and locally produced products are driving consumers’ buying habits. In fact, 61% of NZ sales growth was driven by new products in supermarkets over the past 12 months. This highlights the need for FMCG suppliers to stay ahead of the curve and continue to innovate to meet changing consumer demands.
- Finally, the establishment of a new Grocery Code of Conduct was a significant topic of discussion at the conference. The new Grocery Commissioner Pierre van Heerden spoke about the main issues on his fix-it list, including pricing integrity, creating a level playing field by removing barriers to entry and expansion for new entrants, as well as generally shining a light on the industry to create better fairness.
Overall, the NZFGC Annual Conference was a great success, and we left with valuable insights and learnings that will help them navigate the ever-changing FMCG landscape.
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