The success of NZ wines 2019 - Interview with Chief Executive Philip Gregan - GS1 New Zealand
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ISSUE 47 MARCH 2019 WWW.GS1NZ.ORG
The success
of NZ wines
–– Interview with Chief
8
Executive Philip Gregan
GS1 DIGITAL LINK 7
SOMETHING TO CROW ABOUT 14
2019
eCommerce Innovation Summit
Thursday 11 April
Grand Millennium, Auckland
www.gs1connect.nz
GS1 COMMENT
Connection with new technologies
The GS1 System has enabled dramatic beginnings in the late 1970s. Connect 2019, our eCommerce Innovation
transformation in how we work and live Summit in Auckland on 11 April, will be
In truth, we have only just seen the
over the past 40 years – and you can be another great opportunity to hear first-hand
beginning. The digital world continues to
absolutely sure that it will continue doing about new, standards-enabled technologies
grow at a quickening pace, and the GS1
the same into the future. and their application in eCommerce, in
System is very much part of that.
online markets and in the increasing
That’s because GS1 standards and solutions
Globally, GS1 is engaged with leaders right connection of physical and digital worlds.
for identification, and for data capture,
across the development of new GS1 New Zealand is honoured to present an
storage and sharing are fundamental to the
technologies and their application to impressive line-up of international thinkers
efficient operation of so many digital
business and government. Our role is to and speakers at this half-day event (see
technologies – existing and new
constantly facilitate easier, more valuable page 4). We look forward to welcoming you
technologies – in virtually all industries,
connection between the world of products to Connect 2019.
markets and areas of social service delivery.
(both physical and digital), objects and On behalf of all the GS1 Team, I take this
In New Zealand, it started 40 years ago places, and the data, images and computer- opportunity to extend our deepest
when grocery manufacturers and based intelligence. appreciation to Colin Robertson for his long
distributors began adopting the then-new
In New Zealand, our role is to support service as Board member and Chair. Colin
global system for standardised product
members in all their uses of GS1 standards retired in November 2018 and we welcome
numbering and barcoding. Today, could you
and solutions for greater efficiency, Sean Goodwin as our new Chairman.
imagine a world without ubiquitous barcode
scanning for accurate identification and improved service, cost reduction and faster
automatic data capture in retail trading and innovation. Further, GS1 New Zealand is
supply chain management? No more than absolutely committed to connecting
you could imagine a world without micro business and government in our part of the
computing, mobile communications and world to new technology developments, Dr Peter Stevens
broad-band internet – digital technologies and to GS1 standards and solutions that Chief Executive
that, like barcoding, had their commercial enable their take-up to greatest advantage.
Parting thoughts from Colin Robertson
New Zealand is poised to secure much GS1 standards and data-sharing platforms. It’s my unwavering conviction that application
greater value from GS1 standards and Food safety, traceability and product recall of GS1 standards and solutions is just plain
solutions in industry, government and the are other critical areas where GS1 solutions good sense in so many areas – the only
consumer marketplace. I am extremely are starting to make a very positive difference limits are found in human imagination and
confident of this as I survey current to how businesses and public agencies work. leadership. Fortunately, our country has
developments and look back over my 16 years In the grocery sector – where barcodes and plenty of these – so does GS1 New Zealand!
as GS1 New Zealand Chairman. scanning all started – our major companies
It has been my privilege and pleasure to serve
We have come an extraordinary distance in are rolling out new options for consumer
on your Board from 1996-2018. I wish new
that time and today this country is, for the convenience and value facilitated by.
Chair Sean Goodwin and all the GS1 Team the
most part, close behind the global leaders on very best in their continued advance of that
Healthcare is the one sector where we
take-up of digital technologies and the GS1 plain good sense. I will follow
lag behind. Other countries are making
System. The New Zealand Business Number progress with interest!
strides on the use of global standards
(NZBN) scheme and the Government’s
for item identification, cost management
commitment to this as the basis for new
and healthcare efficiency through astute
e-Invoicing initiatives and for all business-to-
use of data platforms, GS1 identifiers and
government interactions are two examples.
advanced scanning systems. Frankly, the
We see accelerating take-up of eCommerce lack of foresight in the administration of NZ's
in all its forms, this enabled by best practice healthcare sector in this regard is frustrating.
SCAN magazine is produced twice yearly for the benefit of GS1 New Zealand Unless otherwise indicated, articles appearing in SCAN may be
members. It has a circulation of approximately 6,000 readers throughout the reprinted provided that GS1 New Zealand is acknowledged.
GS1 New Zealand country as well as 114 GS1 member organisations worldwide.
PO Box 11 110 For editorial or advertising enquiries please contact:
Wellington SCAN reaches decision-makers in a wide range of industry sectors Sheree Phillips on 04 494 1057 or sheree.phillips@gs1nz.org.
+64 4 494 1050 including grocery, FMCG, healthcare, logistics, manufacturing, retailing, Advertising rates are on our website.
0800 10 23 56 wholesaling, transport and government. Our readership includes chief For copies of SCAN: To receive a digital or hard copy of SCAN
+64 4 494 1051 executives, sales and marketing managers, account managers, brand and magazine, email marketing@gs1nz.org or phone 0800 10 23 56.
info@gs1nz.org product managers, IT personnel, operations managers, production SCAN is distributed to all members, and non-members are
managers, logistics and supply chain personnel, (barcoding) staff and welcome to subscribe.
packaging coordinators.
ISSUE 47 WWW. 3
GS1 NEWS
2019
eCommerce Innovation Summit
Looking forward to how new technologies will transform
business (and our lives).
This half-day summit in Auckland on 11 April is for anyone interested in the future of eCommerce, online
markets, and increasing connection of the physical and digital worlds. See the summit programme at
www.gs1connect.nz
The event also marks the 40th anniversary technologies including the EPC standard Rocco Braeuniger,
of New Zealand’s first move into the era of for RFID now increasingly in use Country Manager at
global data standards and barcoding (see worldwide. His many other roles today Amazon in Australia
right). In 2019, further fundamental include being Dean at MIT’s Office of where he launched the
changes are occurring in business and Digital Learning, and Board membership of global group’s first
economies as companies, individuals, GS1 and EPCglobal. operation ‘down under’
governments and others embrace new, in December 2017. Rocco will discuss
transformative technologies (all, in fact, Amazon’s “customer obsession” and the
Chris Quin, Chief
enabled by GS1 Standards). how this drives success in the business.
Executive of Foodstuffs
GS1 New Zealand has brought together an North Island and leader Rocco has been with Amazon since 2006.
impressive line-up of thought leaders to of the group’s He came to Australia from his native
discuss the trends and share their insights. technology-based Germany where he led Amazon’s
Here we profile four Connect 2019 change programmes. consumables team with responsibility for
presenters—please see the programme for Chris will present on how customers are FMCG product lines as well as the Prime
the full line-up. driving transformation in New Zealand’s Family, Subscribe & Save and EU Prime
grocery sector. Pantry programmes. A year ago, Rocco
told a large Sydney audience, “we are
Prof. Sanjay Sarma, Foodstuffs North Island recruited Chris in
working hard at bringing a lot of
Professor of Mechanical 2015 to secure his strategic and leadership
innovation here”. Indeed they are! The
Engineering at skills, and also his 24 years’
late-2017 launch of amazon.com.au has
Massachusetts Institute telecommunications experience at Telecom
been followed by Marketplace, Amazon’s
of Technology (MIT) NZ and Spark. The newcomer to grocery
fulfilment service for third-party sellers,
and “father of the EPC” has since led the I Shop New World push
Alexa, a voice-activated digital assistant
(GS1’s Electronic Product Code for radio into online shopping and other customer-
(with an Aussie accent), Amazon Web
frequency identification). He will set the driven innovations including the Fresh
Services (AWS) for cloud-based
scene for Connect 2019. Collective smaller-store format. This year
computing and more. Connect 2019 will be
will see PAK’N SAVE launch a ‘click and
New Zealanders’ first chance to hear
Sanjay is a global speaker on new collect’ offering and Foodstuffs make
first-hand about Amazon strategy in this
technologies, and their creation of a digital progress with other digital initiatives. In
part of the world.
world increasingly connected to the the North Island, Chris leads a co-operative
physical world with huge implications for organisation of 96 New World and 44
business and economies. His current PAK’N SAVE supermarkets, 81 Liquorland Kevin Ashton, the global
research and writing explores the evolution outlets and 179 Four Square stores. He technology thinker and
of 3 IoTs — the Internet of Things (devices came on board after three years as Spark’s entrepreneur who
connected to the Internet), the Intelligence Chief Executive for Home, Business and originated the term,
of Things (devices that host software Mobile, having previously held other “Internet of Things”.
applications), and the Innovation of Things executive roles within the telco. Today he is Kevin’s presentation is
(devices that become experiences). In the also Chairman of the ICEhouse business entitled, “The identification of everything
late 1990s, Sanjay was co-founder of the incubator. Chris has a passion for truly makes anything possible”.
Auto-ID Center at MIT and there helped understanding customers and acting to
lead development of various IoT meet their needs.
4 WWW. MARCH 2019
GS1 NEWS
Thursday 11 April For more information
Grand Millennium marketing@gs1nz.org
Auckland 0800 10 23 56
www.gs1nz.org
Register Now!
www.gs1connect.nz #gs1nzconnect
Kevin was Executive Director of the on. In the decades since, he has developed “systems that can cope with the
Auto-ID Center at MIT in the late 1990s and these ideas while also becoming a randomness and complexity of the real
with Sanjay Sarma, led development of the high-tech entrepreneur with start-ups world … as the IoT becomes more
EPC standard for RFID. Kevin coined including RFID products supplier sophisticated, robotic systems will get
“Internet of things” (IoT) to describe a ThingMagic, cleantech company EnerNOC, better at interpreting the world around
system where the Internet is connected to and Zensi, an energy sensing company. In them and making good choices in
the physical world via ubiquitous sensors an interview last year, Kevin foresaw the unexpected, non deterministic situations”.
on a multiplicity of objects, enabling these IoT leading to emergence of ‘messy
to be monitored, tracked, controlled and so automation’. This, he says, involves
Barcodes... we were
quick to see the benefits
Retailers, suppliers and consumers were
quick to see the benefits of barcoding on
retail products, although only after some
experience with the “new” technology. So
recalls John Albertson, former Head of
the New Zealand Retailers Association and
long-time GS1 Board member.
“For most suppliers there were certainly
costs involved in the move to barcoding
The great “beep” transformation
but they quickly saw that the benefits
would be much bigger in terms of higher
sales and refinements to their stock
control,” says John. He was Marketing
The barcode and global numbering have transformed retailing and Manager at Palmerton North-based
supply chains worldwide. In New Zealand it all started in 1979 – and so Prepared Foods when the supermarket
this year we celebrate GS1’s 40th birthday and reflect on the groups issued a requirement in late 1982
that all their suppliers add barcodes to
transformative power of a simple “beep” every time goods and products. “We knew it was coming but yes,
services are traded, from Cape Reinga to the Bluff. it was a shock to the system for some
people till they figured out exactly what
Beep is, of course, the sound of a barcode check-out operator, with all the time and they needed to do.”
being read with a scanner at retail risk of error this could involve.
point-of-sale, on the loading dock of a Retailers were quick to see the benefits in
distribution centre or perhaps anywhere Across the world, barcodes and globally- higher in-store productivity when they
else that uniquely-identified items are unique product identifiers that are could stop price marking every item and
being exchanged or moved along the encoded in them are credited with having speed up check-out processes, he says. For
supply chain. revolutionised retailing and supply chain some, as for suppliers, greater stock
functioning. They sped up customer control and more in-time ordering were
Life before barcodes and scanning was service, enabled efficient stock control, pleasant and largely unforeseen
very different. In the supermarket, for and laid the foundation for traders to
developments. For consumers, check-out
example, each item of product had its own vastly expand their product offering and
speed and the sudden ability to see
price sticker – and its sale was recorded sales channels.
through the manual key strokes of a Continue on page 6
ISSUE 47 WWW. 5
GS1 NEWS
exactly what they were being charged established in the US a few years earlier). 'beeping' for products sold at retail was
were big gains (price adding at the till was heard at a New World supermarket in
New Zealand was admitted to EAN in Taradale, in 1982.
largely opaque in prior times).
March 1981 – only the 16th country
Looking back, John says barcoding and member, after Western European nations, This country’s take-up of EAN numbering
unique product numbering have helped Japan and Australia. We secured ‘94” as and barcoding was rapid thereafter. By
make business faster and more efficient in our country code distinct from Australia’s August 1985, the organisation had 790
so many ways. “Barcodes are like the “93” - and of course, those two digits members and 59 “scanning sites” which
desktop computer, and in more recent remain in all GS1 New Zealand-allocated accounting for around 15% of all grocery
times the Internet, in that they have driven product, container, place and member sales. That percentage was been virtually
so much change it’s hard for anyone of us identifiers today. Indeed, the EAN-13 100% since the late 1990s.
to imagine how work and life would be like identifier and its barcode for items sold at
without them.” retail are GS1 standards unchanged since The range and utility of standards have, of
their adoption in the 1970s. course, been expanded over the decades,
John was a GS1 Board member for most notably with the launch in 1989 of
17 years till his retirement in 2013. Early concerns about possible consumer the GS1-128 (originally EAN-128) barcode
privacy breaches and risks that, somehow, for carrying pallet and carton identifiers.
The first “live” barcode scanning at barcodes would allow prices to be As interest built in commercialisation of
point-of-sale occurred in the United States manipulated to consumers’ disadvantage Radio Frequency Identification (RFID) –
in 1974 (a packet of Wrigley’s chewing were calmed 1981-82 as the industry the next technology wave for automated
gum, now on display in Washington DC’s adopted a code of practice and ran an identification of things – the organisation
Smithsonian Institute). Walmart, the giant education campaign. The packaging launched its Electronic Product Code
US merchandise chain, was an early design and print sector was re-assured on (EPC) standard for putting GS1 standard
barcode adopter and Walmart’s rise to the feasibility and ease of including identifiers onto RFID tags. EPC arrived in
become the world’s larger retailer is partly barcodes on packets and labels. 2005, which was also the year in which
attributed to this fact. EAN became GS1.
This was early on in the digital age:
New Zealand was a relatively early adopter Computers, and in fact any “information Today, GS1 New Zealand is one of 117
too. In August 1979, a group of retailers technology”, were largely unknown to the country members of GS1 Global and we
and wholesalers formed the New Zealand public and most business people. have approximately 8,000 members
Product Numbering Council (later, spread across much of this country. Few
Association) and began lobbying to join By the end of 1981, EAN’s New Zealand have reason to look back 40 years. But
the European Article Numbering (EAN) organisation had its first 30 members those who do will see a vastly different
organisation, the forerunner of GS1 Global. including Foodstuffs, and large grocery world, one without the operating
(EAN was formed in 1977 to own and manufacturers including Unilever, T.J efficiencies, productivity gains and market
develop a global identification system and Edmonds, Griffin and Sons, and Cadbury choices we have long taken for granted.
to use the barcode technology standard Schwepps Hudson. The first actual
Discover what's possible with
GS1 New Zealand
Seminars
GS1 New Zealand seminars help you uncover the many benefits
of integrating the GS1 system into your business. There are two
types of GS1 seminars - the Foundation Seminar and the
National Product Catalogue Seminar - both are half day,
interactive sessions, that are high level overviews.
Webinars
Weekly webinars are available from GS1 New Zealand, that
cover various topics and services. The webinars are live and
presented by a friendly GS1 New Zealand staff member,
enabling you to ask questions both during and after the session.
For more information about the GS1 New Zealand
Events and Training, please visit:
www.gs1nz.org/services/events-and-trainings/
trademonster.co.nz
6 WWW. MARCH 2019
GS1 NEWS
New standard for strong links
to the digital world
The GS1 Digital Link standard is here – a major step forward in linking physical products to the digital
world. It promises to bring huge benefits to both businesses and consumers.
Simply stated: GS1 Digital Link will enable anyone with a smartphone to access any number of online
resources about a product simply by scanning its barcode.
This standard supports product Today’s world The future
identification in the business-to-business
Traditionally, GS1 identifiers and barcodes GS1 Digital Link enables connections to all
(B2B) world of the global supply chain—
have been designed for greater supply types of B2B and business-to-consumer
and opens the door to consumers’ access
chain efficiency, from point-of- (B2C) information. As businesses begin to
to more accurate and relevant online manufacture or distribution centre to retail develop solutions using the new standard,
product information. It does this by point-of-sale. But there is an increasing consumers will be able to access a variety
enabling globally-unique GS1 product demand by consumers to directly access of information about a product by simply
identification and attributes to be carried far more product information before, scanning any barcode with their
in Uniform Resource Locators (URLs). In during and after their purchase – and this smartphone: from dimensions and images
the past, you could only find this is especially true for information accessed to expiration dates, nutritional data,
information within barcodes or RFID tags. via smartphones. warranty registration, troubleshooting
Representing GS1 identification in a way instructions—even social media links. They
Some manufacturers have sought to
that is also web resolvable enables will be able to buy or order products,
enable this capability by embedding
connection across the physical and digital collect loyalty points, “share” products
unstructured Web page addresses in
domains. with their friends, and be alerted to special
barcodes, particularly two-dimensional
offers.
Phase 1 of the global GS1 Digital Link (2D) QR Codes®. But scanning these
standard was ratified in August 2018. It is barcodes sometimes leads to broken links The standard is designed to complement
now being piloted in several countries in or websites with incomplete or non- today’s ubiquitous GS1 barcodes, which are
anticipation of its full release. relevant information. Moreover, these are expected to remain the universal standard
usually secondary barcodes placed on the for product identification for many years to
The core standard document, see product, creating confusion with shoppers come. The new standard does, however,
www.gs1nz.org/standards/digital-link/ and retailers at point-of-sale: Which of the open the door for potential migration to a
two or more barcodes should be scanned single web-enabled barcode in the future.
SCAN readers with Web-connected for which purpose?
smartphones can see the GS1 Digital Link There is clearly demand for a global
in action by scanning here and accessing “The GS1 Digital Link
standard to transform GS1 data encoded in
the website for more information about a standard is the
GS1 1D and 2D barcodes, into standard
particullar product. foundational bridge
Web URI syntax.
between physical
products and their
digital twins. Ensuring
that product data, information about
inventory and digital assets for a particular
product are linked to each other through a
common identity that also links to the
actual physical product is essential to
serving the needs of consumers today.”
The toy bear has
a GTIN which is Robert Beideman, Chief Solutions and
Innovation Officer, GS1 Global
encoded in this
QR Code®. It
Robert will present at Connect 2019:
also has an RFID eCommerce Innovation Summit, on
tag embedded 11 April in Auckland. See
in the swing tag. www.gs1connect.nz
GS1 Digital Link in action, see
https://data.gs1.org/gtin/09507000009060/ser/00321
ISSUE 47 WWW. 7
FEATURE INTERVIEW
Distinctive wines
supported by local
expertise and global
standards
New Zealand wine is a major export success story. But our wine producers
must grapple with all the issues that come from being part of a complex
global economy – market access uncertainties, rising information
demands and traceability among them. SCAN talks with Philip Gregan,
Chief Executive of New Zealand Winegrowers (NZ Wine) which
represents, researches and promotes the interests of grape growers and
winemakers.
Philip has helped lead industry growth and success since becoming CEO
of NZ Wine’s predecessor, the Wine Institute of New Zealand, 28 years
ago. He started there as a research officer in 1983, having previously
graduated MA(Hons) in geography from the University of Auckland.
Today NZ Wine represents more than 1,500 growers and makers. GS1
New Zealand has almost 600 brand owner members in this sector.
How has New Zealand wine been so New Zealandness … I think so long as we either. The industry looks good in much of
successful in the global market? continue being world class and distinctive, that space but we’ve got to keep moving
there’s definitely a place for New Zealand forward on all aspects of sustainability so
We can look back to the opening-up of wines in the world. that we retain the support of our local
global trade over the past 25 years, and
communities.
couple that with New Zealand’s own Where does sustainability fit into that?
programme of economic reform since the To maintain our distinctiveness, we You have a target of $2 billion in
mid-80s and with a huge shift in the absolutely have to be sustainable. That export sales by 2019-20, that's
traditional beer drinking-countries like means looking after our land, water and extraordinary growth over the past 23
Britain and Australia to consumption of air, and also looking after our people. It’s years. Can it continue?
wine as well. On top of these broad not optional from either a production We will hit that target in the next few years
foundations, the plain fact is that New perspective or a market perspective. We – and yes, there is definitely further growth
Zealand produces world-class wines that started out in 1995 with a sustainability to come. Whether we encapsulate that in a
are truly distinctive and have really programme, and in 2010 we said that new big export growth target is another
captured attention because of their style anyone who participates in any New question because actually our success
and quality. The obvious example has been Zealand Wine event anywhere in the world story is broader these days. Wine tourism
Marlborough sauvignon blanc ... it's world needs to be certified “sustainable”, within New Zealand is part of it, and that
class and you can’t get it anywhere else. whether that was recognition as organic, doesn’t get counted in export sales. There
Likewise, you can only get a Hawkes Bay
biodynamic or sustainable in context of will be other indicators of success.
syrah or Central Otago pinot noir from
another programme including our own.
those places, and people know that! Even Grape production is continuing to grow,
today if you’re doing an international wine Effectively the whole New Zealand wine with just under 1,000 hectares of new
tasting, people can tell the difference industry is part of some certification vines being planted each year. We’re at
between a Marlborough sav blanc and programme and of course, within each of 38,000 hectares in production this vintage.
anything else. At a recent tasting I those the bar is getting higher all the time. That said, land availability is becoming an
attended, everyone simply said it was Wine is also recognised as a relatively issue. Marlborough is running out of land
“classic”. The future for this country is to efficient use of land and of water, and and we had PwC do a strategic review last
keep producing wines that express our we're not a big source of nitrogen leaching year which put the land still potentially
8 WWW. MARCH 2019
FEATURE INTERVIEW
available for new planting at about 5,000 Could there be a big issue around NZ Can NZ producers contain some of
hectares. That will be eaten up quite wine exports into Europe via the UK? those risks by ensuring they adhere
quickly. The industry is facing some Potentially there is an issue and also in closely to global standards for
challenges to its growth although New regard to wine moving the other way identification and data sharing? For wine
Zealand can’t compete on the global across the Channel. But if the UK gets into makers and exporters, there has perhaps
market on a volume basis anyway. We are negotiating free trade agreements with been a tension between global
only 1% of world wine production and our other countries, there’s an opportunity standardisation and the fact that they are
cost of production, in a cool climate, is from our perspective to have more liberal producing such a distinctive product as
always going to be high. So, we’re always winemaking rules than NZ currently faces you alluded to before.
going to be about distinctiveness, when selling into the UK. We see some I don’t think there is a tension between
sustainability and quality, rather than potential positives, although in the those two things but yes, there are times
volume. short-term there may be disruption at the when wine producers don’t fully
border. understand what is being asked of them in
Market access issues are always at the the global market. There are definitely
fore for New Zealand exporters, wine What is the trend in other, technical some baselines that wine producers must
included. What is your take on global forms of trade barrier from national meet. Whatever channel you are going to
trade and protectionist risks in 2019? licensing boards, buyers’ special be selling through, there are standards to
There’s no doubt we have benefited from requirements and so on? be complied with … and usually that means
steady improvements in market access There are different levels of trade your product needing to be separately and
over many years, starting with CER1. Today restriction, from governmental regulatory uniquely identified. That’s just part of
we export to around 100 countries. The standards, to quasi regulatory standards, doing business and being in the world. This
New Zealand Government has signed through to private standards as set, is what private standards are partly about.
several treaty-level agreements specific to effectively, by supermarkets around the It's much easier if you also understand the
the wine industry. For example, when we world. The risk around private and quasi ‘why’ behind a requirement, and that
export wine to the United States this regulatory standards is that they start applies to complying on data standards
product can be made in accordance with becoming regulatory standards even too. Without it people will be inclined to
New Zealand wine making rules not those though they don’t formally have that role. say, ‘I’m not going to do that because it
in the US … same with our exports to At the end of the day, a buyer can impose doesn’t make any sense’. We’ve got an
Canada, Chile and some other countries. any standards they want but they need to industry where people come and go all the
NZ did a very smart thing in the mid-1990s be equally and fairly applied to domestic time … wineries are bought and sold,
and based our rules on how wine is as well as foreign producers. people are coming into the industry from
generally made all around the world … we different backgrounds. It’s easy to lose the
have an very open system with some From our perspective, you have to look at understanding within individual wine
baselines around product integrity and the direction of travel and ask, ‘is the level making organisations. We see that when
food safety. of activity taking us all in the right dealing with wineries on labelling and
direction?’ Basically it is about deciding export issues.
The European Union (EU) is the classic whether protectionism is on the rise or not.
example of more restrictive technical rules With Canada in recent times, we saw rules Are private standards generally clear
and you adapt your winemaking to suit that favoured Canadian wine in terms of enough for people in the industry as they
those rules when producing for that where it could be sold vis a vis imported approach export markets?
market. We have passed a Geographical wines. And we decided the direction of Much of the time, the issue comes down to
Indication, or GI, system in this country travel was all wrong there. I don’t think this who the wine producer is actually dealing
because it suits our interests but it also type of problem is on the rise worldwide. with in a foreign market. Many producers
provides alignment with the EU rules. For New Zealand, and other countries, one and exporters don’t know the retailers who
Looking around the world today, there are of the bigger issues on the horizon is the are ultimately selling their wine … they deal
a lot of positives. CPTPP2 gives us future of the World Trade Organisation with an importer and rely on them to
improved access into Japan and of course, (WTO) system and the weakening of its provide all the information that will be
we have the free trade agreement with appellate processes. We are not going to needed. What we sometimes see – and it
China. That said, there are uncertainties on have the judges who are needed to look at is particularly common in Asia – is that the
the horizon in relation to “America First” in breaches of WTO rules. As a small country importer will represent regulatory
the USA and Brexit. People ask me what with no real power, this is really concerning demands in ways that are quite different
Brexit will mean for NZ wine… if the UK because we have no other way of getting from what they actually are. Exporters are
Government doesn’t know the answer, trade rules enforced. Everyone is being asked for much more information
then I absolutely don’t! Our role is to help concerned about fraying of the global that the regulations require. We see this all
wineries prepare to manage that trade rules system. It comes back to the time … we go back to wineries and say,
uncertainty. greater uncertainty for exporters and ‘no, this is not required, if you give this
higher risk around what we produce, how level of information to your importer, they
and for whom. will then ask everyone else for this and the
1
Closer Economic Relations with Australia, in private standards will, in effect, become
effect since January 1983 the regulatory ones’.
2Comprehensive and Progressive Agreement for
Trans-Pacific Partnership
Continue on page 10
ISSUE 47 WWW. 9
FEATURE INTERVIEW
To the extent that the issue is about particular buyer is asking questions of a you need good records. The consumer
data and information, it must be particular supplier as part of their who buys a bottle of NZ wine anywhere in
extremely useful to have one set of global marketing and supply chain arrangements, the world should be able to look at the
standards for everyone to refer to and one and the collection of information that label and know who the producer or
organisation like GS1 that is present in becomes built into regulatory standards importer was. There are lots of other
every market. without understandable advantages to all questions they can ask as well... the
parties. Over time, there is a danger of vineyard the wine was sourced from,
In 1990, less than 1% of NZ wine was
more and more information flowing not where the vines came from and when they
exported. Today that figure is 85% and it’s
just to customers but also to border were planted, when the grapes were
only going to increase in the years ahead.
authorities, at a cost to the producer but harvested, what sprays were used, and so
So our industry as a whole is international
without any obvious advantage to them or on. Much of this information must exist by
– and when you’re in an international
to consumers. Where information is law. The big question is how much of it is
business, there are international standards
passing through to authorities, the transferred up the supply chain and how.
and protocols to be applied whether you
question becomes, ‘what, really, are the Yes, there are challenges in how you as a
like it or not. The standards need to be
risks that need to be controlled and wine producer capture, store and share
complied with … and when your product is
managed by those authorities having that information so that it is available for
global, it is much better to have one
access to all this information?’. customer inquiry and for traceability. As a
system of standards that applies across
brand owner, you are in the centre of
100 markets than just a few. One of our
There are advantages generally in gathering all the data and being able to
roles at NZ Wine is to tell people what the
sharing information to combat the make it available, and that can include the
labelling requirements and other standards
counterfeiting of products which is a huge scenario where your wine is exported in
they should be following. We give advice
issue in some markets. Is counterfeiting of bulk and then bottled offshore for offer to
within our areas of expertise. We are not
NZ wine an issue for you yet? consumers in particular markets.
experts in product identification and
barcoding or in data capture and sharing … We have no instances of counterfeit
reported yet. I’ve been to big trade fairs in What advice do you give members on
that’s where GS1 comes in and our
China and there are products on display traceability systems?
members have to rely on GS1's expertise in
that are clearly imitating or trading off Our role is to be expert on things that are
those areas.
other brands. Penfolds from Australia is particular to New Zealand wine. There are
the classic example. We haven’t attracted plenty of other issues which are very
How do you view the prospect of
that sort of attention yet. The difference is important to our members but on which
product data which is collected for use in
that Australia exports over $1 billion of we are not experts – and that includes GS1
New Zealand trading systems then being
wine to China compared with our $40 standards and systems for product
shared with overseas border authorities
million. But yes the risk is there as our identification, standardised data and
with the ostensive goal of expediting
presence grows in that market. traceability. Wine producers need to use
trade and clearance?
that expertise when they need it.
It could be very advantageous where data We think that success in China isn’t about
sharing supports trade flows and reduces growing your sales 50% from year to year,
cost in the supply chain … but there is that but about being in the market long term For more information, see
risk of ever-increasing demand for and developing a sustainable business www.nzwine.com
information from producers – some of that there.
information commercially sensitive – that
cannot actually be justified in the interests How good is the wine industry at
of all parties. You always have to ask, ‘why traceability today?
do other countries want all this data from We have the Wine Act 2003 and central to
us?’. There’s a big difference between that is record keeping … winemakers must
private sector transactions, where a keep accurate records. To make good wine,
10 WWW. MARCH 2019GS1 NEWS
New
Board
Members Sally Copland Phil Wright
Countdown Foodstuffs South Island
As Countdown’s General Manager – Digital, Phil Wright foresees continuous growth in
Sally Copland is passionate about the grocery sector’s need for data – and for
customer service and the role that product its trading partners to support GS1 data
data must play in maintaining and standards. The Foodstuffs South Island
enhancing it. “Increasingly, consumers General Manager for IT says more and more
expect to have complete and accurate data is required to meet consumer
information on products they’re buying, information demands, to personalise
and it’s so important for us to make sure
retailers’ offers, and to support complexity
they get that information through all the
in supply chains and in the retail
different channels available. It’s about
marketplace. “Given today’s complexity and
Richard Allen giving people the right shopping
rapid pace of change, the big challenge for
experience and maintaining their trust in
Fonterra whatever products they’re buying to feed our industry is to collect and share an
their families or consume in other ways.” increasing array of data in an accurate,
Retail and distribution businesses aspiring up-to-date form … and that makes the
to best practice certainly need to ensure Sally says the challenges include how to correct use of well-established data
they are making the most of GS1 standards make the experience seamless whether the
standards more important than ever,” says
and solutions, says Richard Allen, Director customer is shopping online or in-store,
Phil.
of Farm Source. Part of Fonterra, Farm and whether they’re using physical or
Source operates more than 70 stores to digital means to access the information The growth in data includes more detailed
service dairy producers and other farms they expect. “It isn’t just about online information on products and their
across New Zealand. Richard says Farm because how we range our stores and ingredients, video material and other forms
Source, like many large retailers, is present products are extremely important of product imagery, and greater insight on
undergoing a major transformation as well. Everything we do requires having consumer preferences and on how these
programme, this includes application of great data on products, customers and
can best be matched with the retailer’s
the best available digital technologies for stores.”
product and service offering. “We need that
data capture, storage and sharing within
Not surprisingly, Sally is also passionate data to be accurate and available in
the business, and in its relationships with
about GS1 standards, most notably the real-time if we are going to use it efficiently
clients and trading partners.
National Product Catalogue, as “great with tangible benefits to everyone,” says
Richard joins the GS1 Board with enablers of us having the right information Phil. His role includes a responsibility for
substantial experience in Fonterra’s global available, quickly and in a consistent master data governance across the whole
business and in the dairy industry format, wherever we and our customers
Foodstuffs group.
generally. He has previously been Vice need it”.
President of Food Service for Fonterra in Phil joins the GS1 Board with 14 years’
Sally’s career in retailing has, in fact,
China and Chief Executive at MyMilk Ltd, a experience as Foodstuffs South Island’s GM
tracked the rise in importance of data and
Fonterra-backed milk supply company IT, overseeing a number of business
standards. Her first role was with BP and in
operating in the South Island. Today he sits transformational programs including its
2006, she joined Countdown (Woolworths
on the boards of several Fonterra implementation of SAP, introduction of New
New Zealand at that time) as marketing
subsidiary companies. A business graduate Zealand’s first self-service check-outs, its
manager for the group’s own-brand
of the University of Auckland, Richard is successful launch of Club Card for New
products. Today Sally leads Countdown’s
also a co-founder and director of Snowball
digital and technology business unit, World customers and Sticky Club for
Effect, New Zealand's leading online equity
known as CountdownX, this encompassing PAK’nSAVE customers.
funding platform.
Countdown.co.nz online shopping, loyalty,
digital marketing, 1:1 customer Phil’s earlier career included running large IT
personalisation, payments, technology and projects with Commercial Union Insurance
customer care. She is a graduate of the and Securior in the UK, and on his return to
University of Otago (LLB, BCom) and New Zealand in 2003, he had a period as
Macquarie University in Sydney (Masters in Christchurch City Council’s Chief Information
Management). Officer. Phil holds a Bachelor of Commerce
and Administration degree from Victoria
University of Wellington. His other
governance roles today include board
membership of Canterbury Tennis and
directorship on Christchurch-based start-up
company The Courier Box Limited.
ISSUE 47 WWW. 11MEMBER PROFILE
The constant brewer
Garage Project (GP) is a brewer. It’s also a place where people are
constantly thinking up new beers (and natural wines too), and challenging
the very notion of what beer is and can be.
“Variety’s the spice of life,” says GP Sales Nelson viticulturalist Alex Graighead.
Lead Josh Lynex. ”We love having a
perpetual turnover in products, with a Talk about perpetual turnover! Few
handfull or so coming or going each week beverage businesses in the world would
depending on what events we’re looking rival GP on frequency of change to product
to celebrate or stories we want to tell.” offering – or the need for rapid turn-
around in GS1 barcode verification. Since
The ideas pour out of GP’s three founders its launch in 2011 (in a converted Aro Valley California and parts of Europe: The
– Pete and Ian Gillespie and Jos Ruffell – garage and petrol station), GP has company, now employing 65 people, has
and their small creative team based at the produced more than 300 different won various awards and had 19 placings in
company’s two central Wellington brew products including some staples which the the top 100 New Zealand craft beer poll for
sites. creators – and their fans – are not ready to 2018.
let go. Names like “Aro Noir”, “Pernicious
All the thinking and talk is about For Josh and Creative Producer, Matt
Weed” and “Hāpi Daze”.
refinement of hop, malt and grain Sloan, GTIN allocation and barcodes are
combinations in GP ales, lagers and stouts, Each new product has a distinctive integral to every new product launch. “We
about “terroir” flavours that can be added narrative – and usually an event or quirky have a lean team so it’s great to have the
from local ingredients, and about brewing story to match – original Kiwi artwork and support we do from GS1’s verification team
and fermenting techniques. Every month, a new GTIN with barcode (except for the who turn around our barcodes very
the lads update their Fresh-branded IPA, Fresh IPA which does not go into standard quickly,” says Josh.
sold only through GP tasting rooms and supply chains). In spite of – or because of
selected bars. And for something different – all the fun and creativity, GP is very
again, they’re now also making batches of serious business. Sales growth has been Taste more at
wild-fermented wine in partnership with phenomenal and extends to Australia, www.garageproject.co.nz
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12 WWW. MARCH 2019GS1 NEWS
New regulations for product
recall by food businesses
Food business will soon be subject to tighter regulation of their
food recall processes and risk management systems. The new
regulations flow on from the dairy industry’s 2013 whey protein ProductRecallNZ busy!
concentrate (WPC) contamination scare and they follow last year’s More than 2,200 businesses are now active
enactment of the Food Safety Reform Act. on the ProductRecallnz platform which
enables them to communicate recall and
withdrawal information to trading partners
GS1 New Zealand has engaged with the • require traceability information to be
rapidly and effectively. There were 188 live
Government and others throughout this provided to MPI on request from one of recalls or withdrawals during 2018. Practice
reform process. We advocate for businesses its officers within 24 hours; is very important to maintain
to having electronic systems in place for ProductRecallnz readiness – and the past
food traceability and recall that make full • require businesses to run a mock recall
year saw 1,172 organisations complete at
use of the GS1 identifiers which are already each year unless a genuine one has least one mock recall or withdrawal using
embedded in most food supply chains. occurred in the same period; and the platform. That is another indicator of
companies anticipating the new food
As the regulations come into effect, an • require information given to MPI to be
safety regulations.
increasing number of food businesses are easily usable.
expected to see ProductRecallnz – the For more information, see
The regulations are intended to ensure www.gs1nz.org/services/productrecallnz
industry self-funded platform for recalls and
consistency across the whole food industry,
withdrawals which GS1 operates in
to make government requirements more
co-operation with the Ministry for Primary
visible and explicit, and to promote
Industries (MPI) – as an important part of
effectiveness and efficiency in recalls. Product flows to charity
their compliance (see right). MPI will publish
its final regulatory proposals to the GS1 New Zealand members are routinely
GS1 New Zealand submitted in support of
Government sometime in 2019. donating products to charity through GS1’s
the proposals and also raised some
ProductFlow and barcode verification
additional points: processes. And the scale of donation is
The regulations will apply to business
activities at approximately 98,000 food growing, along with the gratitude of
• Regulatory design needs to recognise the
premises throughout New Zealand, including various recipients selected by GS1 on
substantial benefits of truly effective
members’ behalf.
those of food exporters and importers. MPI traceability and recall, including
notes one estimate of $162 million for the associated business efficiency gains, Products of all kinds stream into GS1 for
annual cost of food-borne illnesses in this processing by the ProductFlow teams in
reputational protection and alignment
country. It says food safety incidents can do Auckland and Wellington – processed,
with global trading partners, these far
significant economic and reputation harm frozen and fresh foods, household items,
out-weighing a narrow focus on how to
tools and other hardware, and much more
even where they turn out to be a false alarm. minimise compliance costs. (even potted plants). Members can opt to
Effective recall processes can help minimise
receive the items back into their own
the potential harm. • Businesses should be subject to a specific
inventories or to leave them with GS1 for
timeliness requirement on this notification
In October 2018, MPI published draft donation or disposal. The number of
of affected by a business when a recall is products given away by GS1 in 2018 was
regulatory proposals for strengthening initiated. approximately 12,000, and the value was
recalls, along with risk-based plans and
substantial (albeit unquantified).
programmes, for industry consultation. The • Greater effort is needed to remove
core proposals aimed to: duplication in government and public The GS1 team distributes the donated
sector traceability systems for food foods and other items to the City Missions
• identify explicitly those businesses of Auckland and Wellington, the Sisters of
exporting, with a move electronic
(including exporters) which must maintain Compassion Soup Kitchen in Wellington,
processes based on GS1 standards for all
food recall processes; the SPCA, and Lions and Rotary clubs. The
purposes.
team makes a big effort to pass on as
• clarify traceability requirements such that much food as it can in the time available
all businesses keep accurate records of • Relevant information should be rigorously
and to minimise wastage. Last Christmas,
what they buy and sell, from whom and identified in each business through
this included a number of turkeys supplied
to whom (excluding final consumers), and application of best-practice traceability
to soup kitchens.
must be able to effectively trace and concepts.
The donation flow has grown with
recall products whenever necessary;
• Businesses supplying all inputs to the members’ increasing use of ProductFlow,
• specify how long records must be kept food industry should be included in the as well as barcode verification, in recent
for, this being in line with current regulations, including suppliers of years.
requirements or one year longer than a agricultural chemicals and animal health For more information, see
product’s shelf life; products (as occurs in other countries) www.gs1nz.org/services/productflow
ISSUE 47 WWW. 13MEMBER PROFILE
Healthy
breakfasts,
healthy
business
growth
Something To Crow About
has just that!
Nutritious, natural and tasty food at breakfast time is the strong foundation of a healthy diet. So says
Something To Crow About – and the Whangaparaoa-based health food company seems to have agreement
from a fast-growing customer base.
Something To Crow About produces an distributed to retailers, and the company is Production, packaging and distribution is all
innovative range of mueslis for the premium now adept at using ProductFlow. “We’re done from Something To Crow About’s
breakfast foods market, with strong extremely interested in being able to get Whangaparaoa plant, 40km north of central
emphases on the naturalness of ingredients new products and changes into Auckland, near the Millar’s beach-suburb
and on the healthiness of the branded supermarkets easily, with no new forms and home and located close to what Mike
product. “We want to give people a burst of no false starts,” says Chris. describes as a great workforce of
energy at the start of the day … a breakfast enthusiastic people who are pleased to have
ProductFlow, and of course the meticulous
that really is nutritious, tastes great and fills employment without travel hassles. “Our
use of GS1 identifiers, work well with the
you up until the afternoon,” says Chris Millar, current building is ideal because it will
company’s recently-adopted Unleashed
co-owner and manager of the business with accommodate the next 2-3 years’ of
software for inventory management. “These
husband Mike Millar. “Studies show that it’s business growth, and it’s well located for
systems together mean we have all the
healthier to eat a good breakfast because, easy freight delivery and pick up every day,”
product specifications and all the traceability
for one thing, it enables you to avoid he says.
data we need, right where it can be
snacking on other, naughty foods through
accessed at any time,” she says. Something The Millars do not crow about their growth
the day.”
To Crow About registered on but it is, nonetheless, impressive. Mike says
The Millars think their mueslis – created with ProductRecallNZ three years ago (and the annual turnover has more than doubled
the best local and imported nuts, seeds, only usage so far has been for mock three years in a row, and today they ship out
grains and dried fruits they can find – are withdrawals). around 20,000 units of product per month.
indeed “something to crow about” each Something To Crow About is now number 2.
morning: They have also created a range of in the premium breakfast cereals market –
roasted seed “toppers” for sprinkling on Products and in 2016, the toppers received a “highly
salads, sandwiches and anything else you commended” in the Artisan category of the
The Millars and their seven employees (some
might fancy through the rest of the day. New Zealand Food Awards.
part-time) produce six muesli flavours in
small batch runs, including four gluten-free
flavours, two that can be identified as Business development
Business foundations
“paleo” and two containing probiotic
All this since Chris and Mike bought the
With its products on supermarket shelves powder for gut health. Most-recently
business from its previous Dunedin-based
across much of New Zealand, Something To released is Something To Crow About’s
owner who was then supplying a more
Crow About has grown rapidly since Chris “cashew, sour cheery and chia, gluten-free
limited range of mueslis and “seed sprinkles”
and Mike took over in 2014. And they have cereal” – a finalist in the NZ Food Awards
to 15 South Island stores. Mike’s background
put the business on its own strong 2018.
was in sales and business development,
foundation with their enthusiasm for
Each flavour can be purchased in a most recently with TradeMe, while Chris had
product innovation and their marketing skills
brightly-packaged 400g or 500g sachet, been marketing and communications
– and their commitment to best use of GS1
and five of them are also available in a manager for Hallmark Cards in New Zealand.
Standards.
paper-bagged 1kg size (online only). There Neither had a background in the food
Something To Crow About uses GS1 are so far four seed toppers including industry (Something To Crow About
identifiers, with barcoding, on each of its’ 15 garlic- or Mexican-roasted flavours – and employs a professional chef and is advised
products and the cartons in which these are these are retailed in 120g sachets. by an independent nutritionist).
14 WWW. JUNE 2018You can also read
