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Foodstuffs, Wattie’s make major moves in e-commerce arms race

26th November 2021 By Bridget O'Connell | | @foodtickernz

As e-commerce adoption continues at pace and the trends for convenience and personalisation grow, food industry players including Foodstuffs and Kraft Heinz are making further inroads into online food shopping.

Foodstuffs is using Walmart tech partner Northfork to roll out shoppable recipes across New World stores, with Pak’nSave in the pipeline

Foodstuffs has gone live with its new shoppable recipe function, which allows consumers to shop directly from around 7,000 recipes, adding ingredients into their online trolley “with one click”.

It selected Swedish shoppable recipe technology provider Northfork, which counts US retail giant Walmart and leading Scandinavian chain Coop among its clients, for the project.

The initiative took around three months to stand-up led by Foodstuffs’ head of customer products, Paul Bartlett, and head of marketing and customer experience at New World, Pippa Prain. It will see the retailer go up against meal kit companies such as My Food Bag, at the same time as MFB is setting up its D2C product platform.

Bartlett told the Ticker that the technology had been rolled out across 98 North Island New Worlds and 14 in the South Island, with more to be added as the adoption of online shopping continued across the southern stores.

The function was also being lined up for its Pak’nSave stores, likely in 2022, Bartlett said, adding that Foodstuffs has an exclusive licence to the technology in New Zealand.

Northfork said that its technology delivers better customer conversion, builds loyalty, results in higher margins by allowing the supermarket to sell more discretionary and high margin products and adds new revenue by reducing friction with fewer clicks.

Because Foodstuffs’ owner-operator model sees different products ranged at different shops, Bartlett said its shoppable recipes were adapted at the store level to use available products, and they also have cheaper substitutions on offer.

The technology also reads across multiple recipes to aggregate product amounts and eliminate double-ups, and individual recipes can be scaled for fewer or more people.

New World’s Prain said suppliers had the opportunity to drive sales via the Recipe of the Week programme, “which heros some of our key supply partners” through weekly priority products.

Alongside the new online offer, Foodstuffs was also trialling shorter lead times for deliveries working with Uber Eats. The co-op previously offered six-hour delivery slots but canned same-day delivery when Covid-19 spread last year to give under-pressure retailers more breathing room.

It was now “exploring a partnership with Uber Eats” at around 20 city centre stores, including New Worlds and Four Squares, which started last week.

KraftHeinz’s Wattie’s to Home offer

Other food sector players were also ramping up their online channels with KraftHeinz’s iconic New Zealand brand Wattie’s the latest to provide a direct-to-consumer offer.

The Wattie’s to Home product platform launched in August during the nationwide Covid lockdown and last month it made a foray into shoppable recipes with its Easy as Eats meal kits to tie-in to the 25th anniversary of its Food In a Minute initiative (FIAM).

A KraftHeinz spokesperson told the Ticker that the Wattie’s to Home platform, which offered lockdown “care package” product bundles delivered for free across New Zealand, was now a permanent fixture and would be used “to drive brand innovation and initiatives”.

“We are exploring and working on lots of different offerings to bring to our consumers based on what they have expressed they would like during certain events and seasonality,” KraftHeinz said.

On Easy as Eats, KraftHeinz said it worked closely with a range of suppliers and distributors on the concept, which it called “a seasonal offer to drive more love and convenience to FIAM recipe lovers”.



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