The Shortest Path to Winning with Foodstuffs and Woolworths

ByOneStopAsia Editorial

A Category Review & NPD–Driven Strategy

To create maximum sales with the shortest time, minimal effort, and the least wasted cost, suppliers must design their entire approach around Category Reviews and NPD (New Product Development) cycles at Foodstuffs and Woolworths. Everything should be built by working backwards from these key milestones.

This is not a tactical detail—it is the foundation of an efficient and repeatable go-to-market strategy in New Zealand grocery retail.

Start with the Calendar — But Focus on the Real Deadline

The first step is to understand the annual Category Review and NPD schedules for both retailers. What truly matters, however, is not the month in which the Category Review takes place, but the NPD submission deadline, which is the actual operational cutoff.

For each category, suppliers should clearly identify:

  • The timing of the next Category Review
  • The NPD submission deadline
  • Whether a formal submission template is required

Without this clarity, product development and preparation often move in the wrong direction, resulting in wasted effort and missed opportunities.

Category Is Defined by the Shelf, Not the Product Story

The next critical step is determining which category the product truly belongs to. This decision should never be based on origin, brand story, or internal product logic. Instead, it must be based on where the product will physically sit on shelf and which products it will compete against.

Key considerations include:

  • Price positioning
  • Pack size and format
  • Usage occasion
  • Existing competing SKUs

The guiding question should always be:
“Which shelf does this product most naturally belong on?”

Based on this analysis, suppliers should propose a tentative category and confirm it directly with the Category Manager. Rather than asking an open-ended question, it is far more effective to present a hypothesis, such as:

“We believe this product fits within Category X and would sit alongside Product Y. Does this align with your view?”

This approach accelerates alignment and avoids unnecessary back-and-forth.

Clarity Enables Efficient Preparation

Once the category is confirmed, suppliers can align pricing strategy, SKU count, and proposal materials precisely to the relevant Category Review and NPD timeline. This allows preparation to be focused and efficient.

In contrast, moving forward without clarity on category or timing almost always leads to inefficient work, rework, and ultimately poor outcomes.

Not Every Good Product Should Be Proposed

From a success-rate perspective, products should be strictly filtered before submission. The key question is not whether a product is “good,” but whether it is:

  • Needed in the category right now
  • Able to play a clear and differentiated role versus existing SKUs

Products with a low probability of success should not be proposed at all. Selectivity is a competitive advantage.

Listing Is Not the Goal — ROS Is

Product listing is only the starting point. The most important KPI after launch is ROS (Rate of Sale) — how many units are sold per store per week.

Products with low ROS will not be reordered and are at high risk of being removed from shelf. From day one, suppliers must actively build ROS by:

  • Maximising store distribution
  • Securing appropriate shelf positioning
  • Supporting stores through Field Sales Representatives
  • Executing relevant and timely promotions

Understanding the Foodstuffs Ranking System

At Foodstuffs, products are assigned a ranking as part of the range decision process. This ranking directly determines how many stores the product is ranged in.

  • Core Range products are mandatory and stocked by all stores
  • Other ranked products remain subject to individual store buyer discretion

This makes the role of Field Sales Representatives critical. They drive store-level buy-in, support execution, and help lift ROS and distribution. Strong performance at store level significantly increases the likelihood of being upgraded to Core Range at the next Category Review.

The Real Shortcut Is Strategic Design

The fastest route to success with Foodstuffs and Woolworths is not working harder—it is working in the right order.

That means locking in:

  • When (Category Review / NPD timing)
  • Where (Category = shelf)
  • Who (Category Manager)

before deciding what to sell, when to launch, and how to defend the range after listing. When everything is designed around the Category Review and NPD process, results become far more predictable and scalable.

Plan for a Minimum Six-Month Lead Time

In reality, the journey from identifying a product to in-store launch takes time. Even in the best-case scenario:

  • Product proposal to listing takes at least 3 months (Foodstuffs)
  • Compliance checks, labelling, landed cost calculation, and sample preparation require 1–2 months
  • Production and shipping from Asia typically take around 1.5 months

As a result, suppliers should plan for a minimum of six months from product selection to store launch.

Those who understand and respect this timeline are consistently better prepared—and far more successful.

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