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Friday 03 December 2021

Who topped IRI’s annual top 25 FMCG manufacturers list?

22nd November 2021 By Bridget O'Connell | | @foodtickernz

There has been some jostling in the ranks of the top 25 New Zealand FMCG manufacturers in 2021 with Goodman Fielder knocking British American Tobacco off its perch, according to research firm IRI.

Goodman Fielders takes top spot on IRI’s top 25 FMCG manufacturers.

The dairy and bakery company pipped the tobacco giant for top spot with sales across all New Zealand channels of $702m in the year to 10 October 2021, ahead of BATNZ in second place with $689m, according to the list released on Thursday as part of IRI’s annual State of the Industry 2021 report.

Third place was held by homegrown dairy company Fonterra Brands New Zealand with sales of $556m.

While these three firms held on to their podium positions from 2020 – albeit in a different order – they all saw a contraction in sales compared with the year prior.

Goodman Fielder lost $7m, and Fonterra was down $6m, while BATNZ lost $108m of sales annually as traditional tobacco sales trended downwards.

They were not the hardest hit of New Zealand’s food and beverage manufacturers, with a number of others losing a greater amount of total sales year-on-year, according to IRI.

Kraft Heinz dropped into sixth place with sales down $41m to $453m in its largely traditional categories.

Elsewhere, falling alcohol sales including wine in supermarkets played against the big alcohol groups.

Lion New Zealand saw $46m shaved off its total although it held onto seventh place with sales of $368m, and DB Breweries was the last of the companies to experience a double-digit contraction, with its sales shrinking by $13m to $235m, although it too held its spot at number 12.

There were some positive movers in IRI’s list too, with non-alcoholic beverage companies benefiting from strong sales through the grocery channel and housebound consumers stocking up on multi-packs, Debbie Simpson-Pudney, head of retail, innovations and solutions at IRI told the Ticker.

This trend helped Coca-Cola Amatil (CCA) add $38m to its total of $546m of sales, staking its claim at fourth place again, and Frucor Suntory, which made ground adding $22m of sales to move up into ninth spot with $270m.

Nestlé New Zealand climbed up the ranking to slot in under CCA by adding $21m of sales, taking it to $453m, and Unilever added $16m of sales although it did not budge from eighth place.

The final double-digit sales growth was seen by Tegel, which moved from up to 22nd after increasing sales by $18m to $156m. This was the second strong year in a row for the chicken company as it kept the momentum going from the launch and expansion of its Take Outs frozen chicken range, which tapped into the consumer trend for convenience.

“We can see Frucor has moved up a place due to its strong performance in the latest moving annual total, while Griffins and Bluebird – dominant in snacking categories – have also jumped a spot in the rankings,” said Simpson-Pudney at Thursday’s report release event.

Considering the full spectrum of manufacturers – including SMEs and private label – Simpson-Pudney pointed out that the top 25 were actually losing ground.

“Looking at manufacturer growth across all channels, we can see the largest growth is coming from small and medium suppliers at the expense of the top 25 manufacturers and private label.”

The top 25 saw sales slip 1.2% to now have a 40.5% stake of the market, while medium-sized manufacturers grew 3.4% to hold 36.1% of sales, and small companies increase 5% to account for 8% market share.

Private label lost a little bit of ground, having made huge strides in 2020 when Covid-19 saw consumers adopt recessionary spending habits and sales surged 12.7%.



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