The team at Foodstuffs South Island have been both personally and professionally affected by Saturday's earthquake and we know how hard it will be for many to recover from the damage and loss they have suffered. As part of our commitment to our staff, the Foodstuffs (South Island) Community Trust is going to donate $100,000 of shopping vouchers to staff members who have been adversely affected by the earthquake.
 
Each of our New World and PAK'nSAVE store owners (or managers) will be able to provide grocery vouchers to staff members whose families are struggling due to losses caused by the earthquake.
 
Foodstuffs South Island CEO, Steve Anderson says, "There is no individual limit on the value of vouchers or amount of support each family may receive, we have $100,000 to give to staff members who need it."

Foodstuffs will continue to work to improve distribution to all of its supermarkets in the South Island and we are committed to making sure the people of Canterbury and the wider South Island have fully stocked supermarket shelves and access to our usual range of products.

We can confirm that the loss of products and damage to our distribution centres, supermarkets and wider network will run into the millions but that the claims made recently in the media are incorrect. At this early stage Foodstuffs is unable to confirm the exact cost of the earthquake as determining this will take a significant amount of time over the coming weeks.

Foodstuffs South Island CEO, Steve Anderson says, 'Our focus, as it has always been, is making sure our customers have access to the normal products they expect to find in our supermarkets. Our owner-operators, their teams and the distribution staff have been working very hard to make sure our shelves are stocked and customers can be confident they will get what they need in each of our stores.'

Please find attached two images of our distribution centre at Hornby. We have provided these images in an attempt to deter further media and photographers from trespassing on the site. Due to the nature of the damage attempts to illegally enter the site are not only dangerous but are taking up valuable Foodstuffs resources which need to be deployed to make sure our products reach our customers.

Foodstuffs has been working with the Red Cross to provide help and support. So far the three Foodstuffs companies (Auckland, Wellington and the South Island) have committed to donating $100,000 to the people of Canterbury. Additionally, we encourage the people of New Zealand to donate whatever money they can afford. Foodstuffs is arranging donation points in-store so that anyone can leave monetary donations at any of our New World, PAK'SAVE or Four Square stores nationwide.

We would also like to advise that you can also donate via the Red Cross's 'Canterbury Earthquake Appeal', either online at redcross.org.nz or by calling 0900 33200 to donate $20. 100% of the phone donation will be going to those affected directly by the earthquake.

There has been some damage to our DC's in Christchurch, but we expect to be making deliveries of Chilled / Frozen and  Ambient  product from sites in Christchurch by Monday morning. Dunedin DC is unaffected and we will be using Dunedin to supply product to the upper South Island where required.

No staff were injured at any of sites and all IT systems have remained fully operational through this period, though there has been extensive internal damage to the Hornby Ambient DC.

All the Retail store are open apart Rolleston (which will be opening Monday) and Kaiapoi, where the damage to the store and surrounding town is more wide spread and we are not sure at this stage when  the store will be re-opened

The office building at Papanui has suffered only very minor superficial damage and all staff at Papanui Head Office should report to work as usual on Monday unless they have made alternative arrangements with their managers.

All staff at DC's should report for work as usual, unless contacted by their manager

Foodstuffs general manager, property development, Angela Bull says, "New World prides itself on bringing competition as well as a superior grocery offering at good prices to communities nationwide. This new supermarket will be a welcome asset to Mt Roskill."

Mr Wilkinson says, "As a third generation grocer, I am really looking forward to bringing New World's quality offering to Mt Roskill. I am passionate about groceries and providing customers with an exceptional shopping experience.

"Giving back is part of the way I do business and I just can't wait to join this vibrant community."

The 3,540 square metre store, which is situated on the corner of May and Stoddards Roads in Mt Roskill, has created 150 new jobs for the community. It introduces a superior offering to the area with an in-store bakery, premium deli section, and specialist butchery, which will offer a special range of halal meats.

Mr Wilkinson is committed to catering to the area's diverse community. "I understand that Mt Roskill includes more than 50 different cultures, each with their own tastes and dietary requirements. I have a vast range of international foods and I will be talking to my customers to further develop my offering to meet their varied needs," he says.

Maria Tutaia, who was recently named a part of New Zealand's Commonwealth Games squad, delighted shoppers at New World Redcliffs by working the checkout. Meanwhile, New World Westend checkout staff were thrilled to pack groceries with their heroes, Leana de Bruin and Grace Rasmussen.

New World sponsorship coordinator, Margaret O'Sullivan says, "Bringing the Silver Ferns to our stores provides an ideal opportunity for us to give back to our communities and celebrate this fantastic sponsorship.

"We were especially proud to see the number of people who turned out to support these talented players. As a 100 per cent New Zealand owned and operated organisation, we are pleased to be sponsoring such Kiwi icons as Netball New Zealand and the Silver Ferns." 

Silver Ferns are visiting selected stores throughout the country as part of New World's elite sponsorship of Netball New Zealand and the Silver Ferns.

Justin Smith, local owner/operator of New World Oamaru, said that the frontage of the building will be moved out five metres and there will be a total refurbishment of the inside. 

"There will be very little that will be unchanged by the time we have finished. One of the first things customers will notice will be the new foyer entrance. We are also increasing our number of checkouts from eight to fourteen, which will include five self serve checkouts. 

"We are putting in a new espresso bar so that customers can enjoy a coffee while they shop, and upgrading and expanding all departments. The two most exciting areas are the extension of the fresh seafood area to include mussels and scallops and our new bakery ovens that will allow us to produce a greater variety of fresh breads, cakes and biscuits," he said. 

With an extra 50 bays of grocery space, the international food section will increase dramatically, providing a more expansive range to choose from. 

"This is a strong growth area. With people travelling and the ever-increasing number of cooking shows and recipes books, the demand for the likes of Asian, Mediterranean and Moroccan food has grown accordingly. We will have five bays dedicated for this section," he said. 

New display cabinets, chillers and refrigerators are all included in the upgrade. 

Roger Davidson, General Manager Property and Retail Development for Foodstuffs South Island, said that the development of the supermarket fitted in well with the investment the company is making throughout the South Island.

"In the last three years we have invested $80 million as part of our schedule of upgrading our New World supermarkets throughout the South Island. We also built a new supermarket at Lincoln last year and will start another new one in Christchurch near the university later this year. 

"We know how appreciative the building industry is to have contracts of this size in these difficult times and having a local Oamaru firm as the main contractor is great for the local economy. 

"It also demonstrates our commitment to providing up-to-date and modern supermarkets for our loyal customers and emphasises our continued investment in South Island communities where our locally owned and operated stores are situated," he said.

Operations Group General Manager David Couper says the distribution centre, which began operating in January, has been designed to meet the current demands and future expansion of Foodstuffs Wellington Cooperative Society.

The distribution centre on the corner of Roberts Line and Railway Road is huge. People are dwarfed by the size of the place which is the largest in Palmerston North and one of the biggest in the country south of Auckland.

Inside the building, the feature that rivets the eye is the huge complex that dominates the central area. This is Foodstuffs' automated picking system (APS). The 10-metre tall, steel lattice storage system for loose groceries is a computer-operated machine that was designed and installed by Australasian logistics solutions company, Dematic.

High speed "intelligent" cranes are installed between each row of racks and they zoom in and out at high speed. They pick up totes from conveyor belts to store them and retrieve others for delivery to work stations.

A shuttle system of conveyor belts steers totes to and from the work stations where people are packing or unpacking groceries. The people at the work stations don't have to move round to find items, the items come to them. A computer screen tells them how many of each product to pick from the totes and lights show which supermarket's box to put them in.

This "goods to person" automated system deals with what is known as "broken case orders". These orders account for just 15 per cent of volume but the operation has always required the most time and people to action.

The other 85 per cent of goods sent out are those ordered by the large box or pallet-load. These are stored in the regular rows of racks in the warehouse. Even so, battery-powered forklifts and pallet trucks with on-board computer screens instruct their drivers which racks to go to and which pallet to retrieve.

The decision to centralise the Foodstuffs dry goods storage and distribution centre in one place came about when the cooperative had to resolve a pressing problem. It had five comparatively smaller warehouses around the lower North Island that had become unable to handle the expanding number of Foodstuffs supermarkets and the increasing volume of imported goods.

Foodstuffs expects the efficiencies and productivity made possible by the automated system to increase markedly as refinements are made. This will have benefits for all involved in the supply chain - from suppliers through to the supermarkets themselves - as they become familiar with a new way of operating.

Roger Davidson, General Manager Property and Retail Development for Foodstuffs South Island, said that the development of the new supermarket fitted in well with the investment the company was making throughout the South Island.

"In the last three years we have invested about $80 million as part of our schedule of upgrading our New World supermarkets throughout the South Island, We also built a new supermarket at Lincoln last year.

"Just in the Canterbury area alone we are at present spending $16 million on upgrading the New World supermarkets in Rangiora and Kaiapoi and have planning consent to extend our Belfast New World.

"We know how appreciative the building industry is to have contracts of this size in these difficult times. It also demonstrates our commitment to providing up-to-date and modern supermarkets for our loyal customers and emphasises our continued investment in South Island communities where our locally owned and operated stores are situated," he said.

New World Ilam will go out to contract in September.

"The new supermarket will be tailored for the area in which it is being built. There will be a very strong emphasis on fresh foods and an expanded product range, we will be unveiling a new European-styled bakery complete with a specially imported oven and customers will also be able to order espresso coffee as they enter the store.

"A big part of shopping today is all about the experience and shoppers will be well catered for when the supermarket opens next year," he said.