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Eggs and poultry products are increasingly popular as shoppers recognise
the nutritional benefits of these affordable protein sources.
ndependent Egg Producers
Co-operative Ltd (IEP) is a
national egg supplier made up of
regionally based owner-operator
farms specialising in the
production of quality,
fresh eggs at a local and
personalised level. “Our
local farms operate under a
registered Risk Management
Programme to ensure all food
and safety requirements are
met and all products comply
with current legislation,” explains General Manager, Susan Bamfield.
“IEP offers a complete range of fresh eggs to supermarkets across New
Zealand under our national brands Morning Harvest, New Day and Sure
As eggs. IEP is the second largest selling egg producer nationally in key
accounts, with a 25% volume share in the cage and colony laid segment
with Morning Harvest and Sure As eggs, and 8% volume share of free
range with New Day eggs (Source: Aztec MAT 11/12/16, manufacturer
volume sales). The total egg category represents value sales of $221m
per annum,” explains Bamfield.
She adds: “New Day free range eggs come from seven farms between
Northland and Otago specially selected for their pastures, shelter and
climate. Each of our farms is independently audited by AsureQuality,
which verifies compliance with the Animal Code of Welfare (2012)
for Free Range layer hens. The website www.newdayeggs.co .nz has an
expanded recipe section in response to consumer demand for cooking
“Morning Harvest‘s recent consumer promotion rewarded a lucky
shopper from Pak’n Save Palmerston North with a $10,000 cash nest
egg, plus consolation prizes of Breville toasters went to winners all
around the country. The promotion and supporting activity successfully
drove purchase and high levels of engagement on morningharvest.co .nz.
“Over the next 12 months, IEP will continue to invest into its core
brands Morning Harvest and New Day free range to drive brand
awareness and purchase. This activity will focus on consumer driven
campaigns and leverage both the brands’ websites.
“Egg consumption continues to grow in
New Zealand and this is reflected in the
continued growth in overall volume and
value. Consumers have a very positive
perception of the egg market and recognise
the nutritional benefits that eggs can provide,
in particular protein, which is a major food
trend globally in healthy eating.
“The new Animal Welfare (Layer Hens) Code of
Welfare 2012 requires a transition of farms from
the intensive cage housing systems to less intensive
enriched colony housing systems by December 2022.
This will continue to influence our business over the next
12-24 months as significant investment is made by local farms to meet
the new requirements, while maintaining supply to our customers,”
Total market performance
New Zealand has about 160 egg farms – most of which are run by
owner operators or are family businesses. These farmers produce over 1
billion eggs per annum from the 3.6 million hens they farm (source: Egg
Producers Federation). Egg consumption in New Zealand has increased
to reach 237 eggs per capita from 230 per year, as per December 2016.
In the last 12 months, supermarkets sold over 49 million dozen eggs.
This places eggs as the 15th largest category in supermarkets. Eggs as a
category have moved up three category places in the last three years.
Egg demand is growing due to the relative affordability of eggs. This
is a worldwide phenomenon as consumers seek low cost, versatile and
healthy protein sources. Volume growth (dozens) in the last 12 months
was +5.6% while value growth was even stronger at +6.3%.
Driving this growth is the Free Range segment with value growth of
+17%, contributing to over three quarters of total eggs value growth.
The segment has increased its share of the category to now account
for 20.8% of volumes sold. This growth is a result of a shift in market
demand towards cage-free eggs, which is being driven in developed
countries for animal welfare benefits. “New Zealand is also likely to
experience substantial growth in this segment,” predicts Zeagold Foods
Marketing Manager, Julie Williams.
24 FMCG BUSINESS - FEBRUARY 2017
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