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October 2016
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contents October 2016
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NEWS 4 C-store employment drop 5 Plain pack consumer pitch 6 Holyrood for retailers group 7 Jobs could go at Barr 8 Scotland still c-store tops 9 Summer smiles for food sales 10 Awards set night alight 12 Growth for multiples 14 Awards profile: Post Office retailer of the year 18 Continental connection
FEATURES 30 Healthier food and drink 38 PMPs 46 Christmas confectionery 56 Functional and energy drinks 62 Young adult brands update 64 Beer update 68 RYO 70 Technology 78 Forecourts 92 Christmas gifting
BUSINESS, PROPERTY AND LEGAL 22 Trade mark tussles
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MARKET NEWS 24 Biscuits on display 25 Styling sausages 26 Easy cooking in the mix 27 Family meals for a fiver 28 The power hour 29 Ready and chilling October 2016 l
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MANAGING EDITOR Patrick Duffy 0141 567 6074 patrick.duffy@peeblesmedia.com ASSISTANT EDITOR John McNee 0141 567 6032 john.mcnee@peeblesmedia.com
welcome Editor’s comment
by Patrick Duffy, managing editor, Scottish Grocer
GROUP ADVERTISING MANAGER Catherine Melaney 0141 567 6026 catherine.melaney@peeblesmedia.com
The price of shop jobs
SALES EXECUTIVE Sylvia Forsyth 0141 567 6038 sylvia.forsyth@peeblesmedia.com PRODUCTION MANAGER Caroline Maciver 0141 567 6063 caroline.maciver@peeblesmedia.com PRODUCTION ASSISTANTS Claire Alexander 0141 567 6064 claire.alexander@peeblesmedia.com Faye Stacey 0141 567 6042 faye.stacey@peeblesmedia.com DESIGN MANAGER Linda Park 0141 567 6065 linda.park@peeblesmedia.com ASSISTANT DESIGN MANAGER Ashley Johnston 0141 567 6030 ashley.johnston@peeblesmedia.com
CIRCULATION & SUBSCRIPTIONS Malwina Bieniawska 0141 567 6004 malwina.bieniawska@peeblesmedia.com
Member of the Audit Bureau of Circulations Printed by Headley Brothers Scottish Grocer (monthly) £69.00 (UK), £80.00 (overseas) Enquiries to Malwina Bieniawska malwina.bieniawska@peeblesmedia.com © Peebles Media Group 2016
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THE convenience retailing industry contributes a very great deal to society. It supplies goods, services and support to communities across the country, and of course it provides jobs. According to the latest Local Shop Report from the Association of Convenience Stores it accounts for 390,000 jobs across Great Britain, so I suppose we might guess that would mean 38,000 or so in Scotland. Now retailing has a reputation for not being a high-paying industry. So are those jobs ... good jobs? Well, on the evidence of the report, in many ways they are. They are often close to employees’ homes. They can be flexible and they are occupied by people of both genders and in many age groups. Sadly the number of those jobs appears to be in decline, something that the ACS suggests its closely linked to the implementation of the National Living Wage. Retailing can be both labour-intensive and competitive to the point where margins are often very slim. It’s also heavily affected by resourceconsuming regulation and has bricks and mortar sites that need regular maintenance and improvement. It’s unlikely to have the easy ability to pay staff high amounts across the board. So, on the face of it, the announcement by shadow chancellor John McDonnell that a future Labour Government would set up an independent group to determine what he calls a “real living wage”, likely to be more than £10 an hour, looks like a cause for concern. But (and it’s a big but) that wasn’t all he said. He added: “We know that small businesses need to be a part of the bargain. That’s why we will also be publishing proposals to help businesses implement the Living Wage, particularly small and mediumsized companies. We will be examining a number of ideas, including the expansion and reform of Employment Allowance, to make sure that this historic step forward in improving the living standards of the poorest paid does not impact on hours or employment.” Personally I find that very encouraging. If a political party (or better still more than one party) really does see that small and medium-sized businesses make a huge contribution to community wellbeing and employment and that they need and deserve to be practically supported in that, we could be onto something good. Eventually, it might help those hard working convenience retailing entrepreneurs, who ACS has found work more than 70 hours a week and rarely take a holiday, to achieve a healthier work/life balance. And we could see those retailing staff and job numbers arrest their decline and begin to grow once again. Have a great October. October 2016 l l 3
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Jobs fall as wages rise ‘It was a terrific night’ THE Scottish Grocer Awards presentation earlier this year was a fantastic experience for Post Office of the Year winner Teresa Hill, above. Teresa decided to “give it a go” and put forward Whitburn Post Office and Costcutter, little suspecting that not only would she be shortlisted – she would win! You can find out more about Teresa on page 14. Now we’re on the lookout for the 2017 Scottish Grocer Awards winners. Designed to cover virtually every aspect of independent and convenience retailing, the Scottish Grocer Awards gives the industry the opportunity to celebrate enterprise, commitment, innovation and community. In our awards’ 21st year our champions will have the chance of winning a special prize – an all-expenses-paid study tour in Germany. The entry brochure was published with Scottish Grocer last month. You can get a copy by calling 0141 567 6041 or enter online at www.scottishgrocer.co.uk. Deadline for entries is Friday, 4 November 2016. Don’t delay and don’t miss out!
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ACS report says 17,000 fewer are employed in c-stores THE number of people employed by the convenience retailing trade in the UK has fallen by more than 17,000 in the past year, according to the Association of Convenience Stores. In its 2016 Local Shop Report, published last month, the ACS revealed that the UK’s convenience store sector provides jobs for 390,000 people, down from over 407,000 in last year’s report. More staff are said to be working part-time hours. Following the implementation of the £7.20 National Living Wage in April, the ACS warned that the burden put on retailers was “not sustainable”. It said that if wage rates continued on their planned trajectory to 2020, 90% of retailers could reduce staff hours, 81% would consider cutting staff and 79% were likely to reduce their expansion plans. Speaking following the publication of the 2016 Local Shop Re-
port, ACS chief executive James Lowman suggested increased wage costs were to blame for the fall in employment numbers. He said: “The Local Shop Report shows that people of all ages, demographics and interests shop in convenience stores. Retailers have done a fantastic job of diversifying their offering in store and providing a wide range of services, which contributes to the fact that consumers, local councillors and MPs all believe that post offices and convenience stores are the services that have the most positive impact on their local area. “The number of jobs that our sector provides stands out once again this year. Convenience stores now employ over 390,000 people, providing local flexible jobs to people who are juggling other commitments like child care and studying. For the first time since we started this re-
James Lowman, chief executive, Association of Convenience Stores.
search in 2012, we have seen a decline in job numbers as well as more staff working part-time hours. This is consistent with the feedback from other ACS surveys showing retailers cutting back on staff hours to cope with the big increases in wage costs, not least because of the National Living Wage.” According to the report, the proportion of people working full-time in the convenience trade also fell. In 2016, 11% of the total workforce were said to be working full-time, compared to 14% in 2015, suggesting a general move towards more parttime work.
Labour to pledge £10 an hour ‘real living wage’ McDonnell suggests Employment Allowance to help small firms THE Labour Party, the main opposition party in the UK Parliament, has promised to introduce a statutory living wage rate likely to be £10 an hour or more if it wins power at the next general election. But the party also said it wants to help small businesses be able to pay the rate. Announcing the policy at the recent annual Labour conference shadow chancellor
John McDonnell said: “We’ll charge a new Living Wage Review Body with the task of setting it at the level needed for a decent life. Independent forecasts suggest that this will be over £10 per hour. This will be a fundamental part of our new bargain in the workplace. “But we know that small businesses need to be a part of the bargain. That’s why we will also be publishing
proposals to help businesses implement the Living Wage, particularly small and mediumsized companies. “We will be examining a number of ideas, including the expansion and reform of Employment Allowance, to make sure that this historic step forward in improving the living standards of the poorest paid does not impact on hours or employment.”
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Tobacco firm launches consumer pack info AS plain packs which comply with rules governing cigarette and tobacco products in the UK after 20 May next year begin to appear in shops, one of Britain’s biggest tobacco companies, JTI, has launched a campaign to tell smokers about the changes. The campaign explains EUTPD2 and UK plain pack rules to the public through online material at the dedicated website packchanges.co.uk and in in-store materials like posters and leaflets – available to retailers through their reps. Jeremy Blackburn, JTI head of communications, said: “I can well imagine in the days, weeks and months ahead the conversa-
£108k record In one of the first new product developments since the introduction of plain packs JTI has changed the name of Natural American Spirit RYO tobacco to American Spirit. Under the plain pack rules the two variants, Blue and Yellow, are virtually indistinguishable.
tions that might be taking place between customer and retailers. While standardised packaging has been big news, the loss of smaller pack sizes is not something the average smoker is familiar with. Our concern is that retailers might be confronted over that and unfortunately, in
some circumstances, people may think it’s their fault. “What the new website does is provide retailers with a resource they can point customers towards, explaining all the changes. In store, our reps will be placing literature and posters to back this up.”
AUGUST proved a record month for Nisa’s Making a Difference Locally charity, as Nisa retailers donated over £100,000 to good causes throughout the UK. Over the month 85 donations were made to 54 causes including charities, schools, sports clubs and more, totalling a record-beating £108,173. Making a Difference Locally raises funds in independently owned convenience stores that are members of Nisa.
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Cross-party group moves closer Wholesaler in festive launch BESTWAY Wholesale has launched its seasonal confectionery deals for independent retailers as the countdown to the festive season begins. And it says retailers should buy early ahead of the festive season. The special eight-page Christmas confectionery brochure mailed out to customers offers deals across sharing, gifting and impulse confectionery lines. Many of the lines on offer are available as single items in addition to full cases to help retailers manage their cash flow and stock control, the wholesaler said.
ACS appoints new chair THE Association of Convenience Stores has appointed Patrick Sewell, managing director of forecourt and convenience group Sewell on the Go, as chair of the group, effective from next month. Spar managing director Debbie Robinson becomes ACS vice-chair.
Gin takeover IAN Macleod Distillers has acquired Spencerfield Spirit Company, including its flagship brand, Edinburgh Gin. Production of Edinburgh Gin will continue at the distillery and visitor centre on Rutland Place in Edinburgh and at the firm’s second distillery at The Biscuit Factory in Leith. 6 l
SCOTLAND’S convenience trade moved a step nearer to gaining its own cross-party working group in the Scottish Parliament last month. Aimed at delivering independent retailers a voice and important contacts in parliament, the proposed cross-party group for independent convenience stores had its first meeting at Holyrood on September 20. The meeting, held to agree the terms of the new group, was organised by the Scottish Grocers Federation and featured the participation of a range of MSPs, retailers and industry leaders. Among those at the meeting were MSP Gordon MacDonald, who has been involved in many issues concerning Scotland’s independent
convenience retailers, Leigh Sparks, professor of retail studies at Stirling University, head of alcohol in society at Diageo Mark Baird and Margaret Smith, director of Caledonia Public Affairs and a consultant for the Scottish Wholesale Association. From the SGF were chief executive Pete Cheema, head of policy and public affairs John Lee, president Abdul Majid, and vice-president Dennis Williams. Majid told Scottish Grocer of his desire to establish a CPG for the convenience sector last year. He said: “The whole reason I got involved with the SGF in the first place was to ensure the local voice is heard. Scotland’s retailers should be proud of who we are, what we do and what we achieve
Gordon Macdonald MSP, one of those at last month’s meeting designed to set up an independent retail cross-party group in the Scottish Parliament.
for our communities. That’s a message we need to get out there, especially to MSPs, to ensure that they’re working to assist us to survive.” The CPG is now pending recognition, subject to the agreement of the parliament’s standards, procedures and public appointments committee.
Impulse up tobacco down at Filshill GROWTH of its KeyStore convenience store brand, tight cost controls across the business and a good performance by its international division saw independent Glasgow-based food and drink wholesaler JW Filshill record pre-tax profits of £0.9 million in the year to January 31, 2016. The company described it as a satisfactory performance in a challenging marketplace. Filshill turnover for the year reduced 5.8% to £143m, which the firm said reflected marketwide trends of falling tobacco sales and price deflation occurring in many product categories. But turnover of grocery and impulse categories grew during the year, the firm reported, and that helped improve its gross margin from 6.7% to 6.8%.
Simon Hannah, managing director JW Filshill.
The company, which marked its 140th anniversary last year by rebranding and launching a new community-based marketing campaign, made a number of business development, sales and marketing appointments,
and increased investment in IT and logistics. A new fascia for the company’s “top-end KeyStore retailers” is scheduled to be rolled out this autumn. Managing director Simon Hannah, said: “The market remains highly competitive but we are well-positioned to take advantage of the opportunities we are creating and to return to revenue growth.” Export sales through JW Filshill International, which supplies craft beer, spirits and other products to markets including AsiaPacific, are continuing to expand in line with expectations, he said. And the firm is offering strong promotions plus advice and support – on IT, marketing, social media and more – to its retail customers, he added.
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C-stores win promo hits Deals bring benefits in convenience outlets but don’t shine in other retail PROMOTIONS are good for convenience stores, but not so great for the rest of the retail industry, according to new research from IRI. The market analyst conducted a study of over 85,000 promotions in the UK. It reckons they don’t boost sales growth as much as the industry might expect. The report found that retailers are already moving away from deep discount multibuys (a fall of 40% over last year) towards clearer price cuts and ‘round pound’ deals. It also concluded that multibuys have had little or no impact on sales at a category level (0.02%), compared to price cuts that are delivering extra sales benefit to retailers (0.20%). But c-stores see bigger ben-
efits, with growth of over 2.5% in category turnover when promotions are used. Price cuts typically deliver 2.78% category value uplift while multibuys deliver 3.29%. Across retail, tissues, cheese, meal kits and frozen food promotions deliver the best revenue growth. Thomas Hall, analytics programme director for IRI, said: “Many promotions and categories actually have a positive impact on revenue when they are executed in the right place at the right time, helping to grow a retailer’s business, and excite the shopper. The key is identifying promotions that genuinely drive sales and provide a win-win situation for retailer, manufacturer and shopper.”
Opposition mounts against soft drinks tax
Promotions – found to work well for c-stores but to provide less benefit to other shops.
Barr jobs could go SOFT Drinks firm AG Barr is consulting employees and could shed 90 jobs by the end of next
Irn-Bru Xtra: feedback very positive, says AG Barr.
January as a result of a series of changes announced with its latest interim results. The potential redundancies, from a workforce of around 1000 in the UK, include a number of manufacturing jobs at its Cumbernauld plant as production of brands important in the English market is increasingly located at its Milton Keynes facility. A number of sales jobs south of the border could go as the firm says customers are increasingly centralising buying. The effect on salesforce jobs in Scotland should be less marked, however. Barr saw revenue decrease in the six months to the end of July, from £130.3m in 2015 to £125.6m, a decline that the
firm puts down to price deflation in the UK and poor weather. But profit on ordinary activities edged upwards to £17m. New product development especially in areas where the company was developing low-sugar and sugar- free products is going well, commercial director Jonathan Kemp told Scottish Grocer. Feedback in Scotland from the launch of Irn-Bru Xtra had been very positive, he said. The company used the results announcement to describe the Westminster Government’s proposed sugar tax as “a punitive and unnecessary distortion to competition in the UK, which will be very complex, expensive and difficult to implement”.
NEARLY 2,000 independent retailers have thrown their weight behind a campaign against the proposed levy on sugary soft drinks. ‘Face the Facts, Can the Tax’ is a campaign against the Westminster Government’s plans for the tax, supported by a coalition of soft drinks manufacturers, businesses and retail groups including the BDSA, SGF and NFRN. As part of a ‘Day of Action against the Sugar Tax’ on September 16, thousands of shopkeepers across the country displayed posters in their stores warning that a potential 58p price increase on a two-litre bottle of a sugary soft drink could result in the closure of local shops and job losses. Since then, the NFRN reports that almost 1,500 store owners have filled out a postcard to Chancellor Philip Hammond registering their objection to the proposal and saying no to the tax. Almost 500 have written to their MPs. Calling on other retailers to join the campaign, NFRN chief executive Paul Baxter said: “We and our 15,000 members recognise that the obesity problem must be tackled and we support the government’s desire to do so. But what we want is a solution that will not have such a detrimental impact on small shops.” October 2016 l
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E-cigs help quitters GROWTH in the use of e-cigarettes has been associated with a higher rate of successful attempts to quit smoking, says a study, analysing findings from England, published by the British Medial Journal. In a linked article academic John Britton said: “Something in UK tobacco control policy is working, and successful quitting through substitution with e-cigarettes is one likely major contributor.”
Brits prize moderation A poll carried out for Stella Artois and Budweiser owner AmBev ahead of Global Be(er) Responsible Day found that 78% of Britons consider themselves to be moderate drinkers. A third say smarter drinking helps them keep in shape. And a quarter of 18-34 year olds “enjoy feeling more productive at work thanks to moderate drinking”. But 37% of students admitted to missing university lectures as a result of a heavy night.
Scotland still c-store tops More convenience outlets per head than anywhere else in Britain ACS finds IT’S a competitive world in the convenience store business and no more so in than in Scotland. The latest edition of the Association of Convenience Stores’ Local Shop Report shows that once again citizens of Scotland have more c-stores to choose from, per head of population, than consumers in the rest of Britain. Of just over 50,000 convenience stores in Great Britain, Scotland accounts for more than 5300 – one store for just under each 1000 people in the country. Wales runs close with just more than a 1000 to one ratio. In the south-east of England there are said to be almost 1,500 people for each shop. Across Britain independent businesses account for almost three-quarters of the country’s c-stores and while multiple retailers have made significant inroads into convenience retailing their stores tend to be among the larger sites of around 2000 - 3000 sq ft. Almost 15,000 stores are run under symbols or fascia and of those around 14,000 are run by independent business people. Quoting IGD data the ACS report notes that in symbol stores and multiple convenience stores chilled foods now account for 16.6% of sales which is ahead of both tobacco & e-cigarettes and alcohol in the next two places. Fruit and veg is now said to account for more than 7% of sales in such stores, although the report notes that sales patterns in independent stores may be different. Using figures from the ACS Investment Tracker for 2015-16 the Local Shop Report says over the last year convenience stores have invested £600m in their businesses. The average annual investment in
THE LOCAL SHOP REPORT 2016 A report by the Associat
ion of Convenience Stores
#LocalShopReport
The Local Shop Report, available at www.acs.org.uk
a symbol store was just over £10,700. Convenience stores provide 390,000 jobs in Great Britain, 60% of the workforce are women. Most workers live close to the store. It can be a tough life workwise for convenience store entrepreneurs. Almost one in four shop owners work more than 70 hours a week and more than one in five take no holiday over the year. The Local Shop Report 2016 can be downloaded from the website of the Association of Convenience Stores www.acs.org.uk
Wholesalers go talent spotting
Fiona Ritchie, Filshill 8 l
THE Scottish Wholesale Association is looking for ambitious employees in buying, sales and management departments to take part in its mentoring programme. Designed to improve skills and nurture emerging talent in the Scottish wholesale
industry, the programme matches individuals with a mentor from within or outside the industry. Mentees have regular oneto-one sessions with mentors plus unlimited telephone contact. And the programme is structured to suit the
employer’s business. Fiona Ritchie, impulse buyer at JW Filshill, and winner of Scottish Wholesale Achievers Employee of the Year, is a current mentee. “It’s still early days for me but already I’m beginning to see the benefits,” she said.
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Food sales show a summer smile Spar spooks it up SPAR is running deals on brands like Robinsons, Haribo, Cadbury, Doritos, San Miguel and a range of Spar brand items specially for Halloween. The symbol group is also targeting consumers with a range of Halloween-themed digital content including a Pumpkin Masterclass video on its website.
FOOD sales in August in Scotland might not have won any gold medals for the high jump but they did return one of their best performances this year in the latest Scottish Retail Consortium KPMG Retail Price Monitor. Compared to the same month last year sales were down by 0.3% but that compared to a much more severe 1.6% decline that had been recorded in July. The Monitor partners reckon the big summer of sport, including an Olympics where Team GB performed exceptionally well, helped food sales. David McCorquodale, UK head of retail at KPMG, said: “Food
sales in Scotland were the star performer in an otherwise disappointing month. Despite the deflationary environment causing further shrinking, the sector saw its best three-month average growth for more than two years. Staycations, coupled with the Rio Olympics, saw families gathering at home to watch Team GB, helping to drive increased volumes.� But SRC director David Lonsdale said overall retail performance remained fragile and ministers should avoid placing any extra tax burden on consumers and should look closely at what he said is the rising tax burden on Scottish retailers.
The Rio Olympics, suggested to be one reason pressure on food sales eased in August.
EW N
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Setting the night alight Southern takes chilled role
CHILLED foods specialist Kerry Foods has promoted Victoria Southern to the role of marketing director for kids dairy snacking. She moves into her new role following five years working across the Kerry Foods’ meats portfolio, most recently working on the launch of Mattessons and Savagers. She joined Kerry Foods in 2010.
Food to go CFO CONVENIENCE food and food-to-go manufacturer Greencore has appointed Eoin Tonge as chief financial officer and as a director of the group. He joined Greencore in early 2006 and since 2014 he has been managing director of Greencore’s grocery division in the UK.
New sales chief SHS Drinks has appointed Bryan Carroll as sales director. He will be responsible for sales across both own-label and branded drinks including WKD, Bottegreen and Merrydown in GB and Ireland. 10 l
SCOTLAND was well-represented on a fiery night of prizes and entertainment as Imperial Tobacco hosted its annual Ignite Expo and Awards event in London last month. Spar Polmont took the prize for Most Improved Retailer in the scheme run by the tobacco firm as part of the Ignite programme - its trade partner scheme that provides reward points and acts to improve tobacco retailing standards. And the Polmont business, owned by Abdul Sattar, was also one of five UK finalists in the Ignite Retailer of the Year award, a title that was eventually taken by Whitehead Food & Off Licence in Great Harwood in the north-west of England. There was another Scottish success with Pricekracker, the Premier c-store chain with stores in Dundee and Perthshire, which was named winner of the Best Availability title for Scotland, Northern Ireland and the northeast of England, and was a finalist in the UK award. Other awards presented at the gala event – that also featured acrobats, Bollywood dancers, comedy, magic and music – included prizes for best staff training, best new product supporter, best merchandising, the success story of the year, and Imperial Tobacco sales representative of the year. Earlier in the day around 350 retailers in the Ignite programme had attended this year’s Ignite Expo. Imperial Tobacco’s Partnering for Success spoke to retailers about the current transition to EUTPD2 and Plain Pack compliant packs and provided examples
It was a great night for Abdul Sattar’s Spar Polmont store at Imperial Tobacco’s Ignite Awards. The store took the prize as Most Improved Retailer of the Year and was a finalist in the Retailer of the Year award.
of its recommended post-transition gantry layouts, which centre around brand-by-brand locations behind tobacco display ban flaps, with colour coding on shelves to distinguish variants within brand portfolios. Teams also covered issues like stock rotation and availability through the transition period, and the illicit tobacco trade in the UK. Retailers could visit a mock-up of the interior of a corner shop, with a display unit containing only standardised packs. The display followed regulations in England but materials to suit Scottish regulations are also available. Company representatives were also on hand to provide retailers with tobacco price lists and to talk further about the Partnering For Success and Ignite programmes. There were also stands representing Imperial Tobacco brands and tobacco retailing services.
Sandy Sattar of Pricekracker, the Dundee and Perthshire business was Scotland, Northern Ireland and north-east England award winner for Best Availability of the Year.
And Expo attendees heard a keynote presentation about team building by former England cricket captain Nasser Hussain.
l October 2016
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Supermarkets on the way back? Researcher records first two months consecutive growth for two years as drinks sales boom
Premium spirits boom at Co-op SALES of premium spirits have been soaring at the Co-op and the mutually owned retailer, which has been busy turning itself into the country’s biggest convenience store chain, puts it down to an increasing interest in at-home mixology among its customers. The retailer has seen a 42% increase in sales of premium vodka and 41% of premium gin so far this year. Grey Goose Vodka (up 21%) and Hendrick’s Gin (up 87%) were the chain’s biggest-selling premium spirits. And vermouth, used in many cocktails, has seen sales increase 11% this year. The retailer’s spirit buyer, Sarah-Jane Wilson, said: “Super premium spirit brands are now a kitchen cupboard staple for Brits looking to create their own impressive bar at home and we are anticipating sales will continue to grow.”
MULTIPLE grocers in the UK could be emerging from one of their worst periods of sales decline if recent trends identified by some of Britain’s major retail research companies continue. For the first time in two years, the UK’s biggest supermarkets, which had seen sales drop as discounters and symbol convenience stores did well, experienced two consecutive months of growth in money taken at the till and volume of goods sold, according to Nielsen retail performance data released last month. During the four weeks to 10 September 2016, the value of sales was up 0.4% compared to the same period a year ago and sales volumes increased 0.3%. At the same time the biggest supermarket chain Tesco recorded its best year-on-year performance this year, with sales for the 12 weeks ending 10 September down just 0.2% against the same period last year. “With both value and volume growth most weeks since the middle of July we’re seeing the green shoots of recovery for the leading supermarkets in their battle against the discounters and price deflation,” said Mike Watkins, Nielsen’s UK head of retailer and business insight.” Nielsen said that in the 12-
Researcher Nielsen said the UK’s biggest supermarkets saw increases in both value and volume sales in the eight weeks to 10 September, the first two consecutive months of growth for two years.
week period the soft drinks category saw sales rise 8.3% year on year, and beers, wines and spirits saw a 6.8% increase. Kantar Worldpanel figures for the 12 weeks to 11 September showed supermarket sales up 0.3% year on year with particular growth in alcohol sales. Fraser McKevitt, head of retail and consumer insight at Kantar Worldpanel, suggested Team GB’s Olympic success boosted drinks sales, saying: “Sparkling wines including Prosecco and Champagne led the way with growth of 36% as promotional events across a number of retail-
ers successfully tapped into the nation’s celebratory mood.” Worryingly for the independent and symbol sector Kantar Worldpanel said sales there had continued to slump and were down 6% year on year. As the researcher measures sales of take-home items it may not capture sales in convenience channel areas of strength, such as items for onthe-go consumption, however. Both research firms found substantial growth continuing at Aldi and Lidl, where premium own-label goods did well, as well as at The Cooperative and Iceland.
Morrisons sales and profit up SUPERMARKET firm Morrisons has reported likefor-like sales growth for the third quarter in a row as well as a 13.5% increase in halfyear profits to £143m in the six months to 31 July. The company, which has been making major changes 12 l
under chief executive David Potts, said: “Continuous listening programmes and delivery of six priorities are improving the customer shopping trip and stabilising like-for-like sales.” New partnerships had been announced with Amazon,
Timpson and Ocado and cost savings are now expected to exceed its £1bn target by end of its 2016/17 year. It said it was confident of meeting targets but acknowledged there are uncertainties about imported food prices.
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awards profile – post office retailer of the year
First class package Winner:
Whitburn Post Office and Costcutter Post Office Retailer of the Year - sponsored by The Post Office Interview with Teresa Hill, owner.
Winner details Store trading area: 1,700 sq ft Symbol: Costcutter Staff: 10 Hours: 6am – 8pm Mon – Sat, 6am – 6pm Sun Years at store to date: 29
An inspiring example of a post office branch not only moving with the times, but ahead of them, Whitburn Post Office has undergone an incredible evolution since Teresa Hill took it on almost 30 years ago. “It was just a Post Office in those days. We had space for a few envelopes behind the counter and the rest was for queuing,” said Teresa. “Every single day it was queued out the door with people wanting pension allowances. Everyone got their money through the Post Office and even with five of us on the counter you would start at 9am and wouldn’t see the clock till lunch. There was just no stopping. “That’s how it was in those days. You didn’t sell anything. You didn’t have time to have conversations with anyone. It’s all changed now.” Over three decades, Whitburn Post Office first expanded to incorporate a card and gift shop, then grew again when a Costcutter convenience store was added. And three years
ago, the Post Office itself was converted into a Main style branch. At every stage, the team has been ready and willing to meet the challenge. Making customers aware of the extensive range of services offered by the Post Office is the responsibility of Teresa and her colleagues, including customer relationship manager Dolina Thomson, who acts as a single point of contact for people interested in life insurance, broadband packages or a new mortgage. “For those of us who started long ago, when you barely had time to say hello to customers, we’re really not used to it,” said Teresa. “Luckily Dolina and I will talk to anyone and we’ve been quite successful. “Post Office Home Phone is a really good service and an awful lot of people have changed their home phone on the back of us starting a conversation with them. “I wouldn’t say there’s competition between branches, but we are sent
● Three years ago, Whitburn Post Office was converted into a main Post Office branch, offering a full range of products and services. The Post Office operates 8.30am to 5.30pm, but customers can also collect parcels outside of those hours. ● A Whitburn local, postmaster Teresa Hill was at university studying commerce when the town’s Post Office came on the market 29 years ago. Rather than complete her studies she decided to make an offer and jumped straight into running her own business. It’s a decision she does not regret. ● Whitburn Post Office supports a number of charities as well as Whitburn Gala Day and Whitburn Junior FC. Teresa’s husband William Hill is a member of the football club committee. 14 l
Whitburn Post Office and Costcutter is situated in Whitburn’s busy Main Street, close to several cafes and takeaways. It also faces competition from 10 other convenience stores in town.
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Whitburn Post Office is located at the rear of the busy Costcutter store. All staff are active in promoting Post Office financial services and the Royal Mail Drop and Go service, and the branch also has its own dedicated customer relationship manager, Dolina Thomson (above, far right). The Clydesdale bank in Whitburn closed early in 2015 and Whitburn Post Office staff helped many customers adjust to using the branch to deposit and withdraw money.
the data for others with customer relationship managers and you do get a wee bit competitive when you see what others have sold.” It has taken time for Teresa and her team to develop sales skills, recognising when a customer at the counter might be interested in a new service and capitalising on that, but they have risen to the challenge, proving themselves enthusiastic and adaptable. “I don’t think I miss the old days,” said Teresa. “I can remember when a special delivery had to be wrapped up with string and sealed with wax and I don’t miss that. The work changes, but it’s always had its challenges. You’ve just got to move on. We can’t survive on selling stamps, because who sends letters anymore?” Seeing how the business was changing led Teresa to join Costcutter 10 years ago. Moving into convenience retail was a real culture shock, she said.
“We used to open at 9am and close at 5.30pm, open till 12.30pm on a Saturday and closed on Sundays. Now we’re in the shop at 5.45am and don’t close till 8pm. That was the biggest change – the opening hours and the number of staff we needed. “At first, Costcutter was hard, hard work. We didn’t know how lucky we’d been. It’s a learning curve and you just get on with it, but it’s hard.” The convenience store side of the business is now run by Teresa’s daughter Julie Ann and it’s doing well, despite the fact there are 11 convenience stores in Whitburn. “It’s very competitive,” said Teresa. “Everyone’s out for a piece of the same pie. We probably do quite well because we’ve got the Post Office. The two rely on each other. “Having said that, when the Post Office has a Monday holiday the shop is not far off its normal takings. We have a lot
of loyal customers who come because they know us and we have a good relationship with them.” And loyal customers have been absolutely delighted by the store’s success at the Scottish Grocer Awards 2016. “Our customers loved it,”
said Teresa. “Especially the older ones. They really take it to heart. They feel it’s their award because it’s their Post Office. I don’t know the number of times we’ve had to take the trophy down and let customers hold it. It’s been an awfully good thing for us.”
sponsored by
Drew McBride, head of network operations, The Post Office, left, and awards event host Alistair McGowan, right, present the Scottish Grocer Post Office Retailer of the Year Award to Teresa Hill and William Hill of Whitburn Post Office and Costcutter, Whitburn, West Lothian. October 2016 l
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22/09/2016 11:11
THE SEARCH ARE YOU ONE OF SCOTLAND’S STAR RETAILERS? Bakery Retailer of the Year • Beer and Cider Retailer of the Year • Best New Store Award • Best Soft Drinks Outlet • Chilled Retailer of the Year • Community Champion Award • Confectionery Retailer of the Year • Dairy Award • The Entrepreneur Award
Forecourt Retailer of the Year • Independent Retailer of the Year • Industry Achievement Award • Innovation Award • Licensed Retailer of the Year • Post Office Retailer of the Year • Responsible Retailer of the Year • Tobacco Accessories Retailer of the Year • Tobacco Retailer of the Year
Enter online at
www.scottishgrocer.co.uk For further information call 0141 567 6041
GrocerAwardsDPS2017 - SG - linda.indd 1
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CONTINUES... ENTER ONLINE NOW ● Log on to scottishgrocer.co.uk ● Click on awards 2017 ● Fill out your details and tick the categories you wish to enter Closing date for entries:
Friday 4th November 2016
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news
Store manager Daniel Brown, above, brings a wealth of experience to Giacopazzi’s, having previously worked with the Co-op and Scotmid. The site of the new store, left, previously housed Kinross’s health centre.
Quite continental With a food-to-go operation that features a pizza oven all the way from Italy, the latest venture from Giacopazzi’s aims to bring a taste of Italian life to Kinross. GIACOPAZZI’S is a well-known name in Perthshire and across Scotland’s convenience retailing community. Established as an ice-cream parlour in 1910, the business in Milnathort is now a Nisa store owned and run by the founder’s great-granddaughter Joanna Casonata.
Giacopazzi’s still has a great reputation for ice cream and, with the opening of their new store, Joanna and her husband Franck are aiming to develop an equally good name for pizza. Situated on the outskirts of Kinross, just a mile from the Milnathort store, the latest Giacopazzi’s opened for business in
August. The site had previously been the local health centre but sat empty for a couple of years. With a high school, nursery and swimming pool nearby, along with a housing estate (and plans in place to build several hundred new homes) it struck the owners as the ideal location for their new development.
A lot of thought went into the layout of the new store. With a low ceiling, effort was made to keep the shop floor feeling as spacious and open as possible. Queuing customers pass both the bakery and ice-cream counters, as well as a range of impulse products, on their way to the tills. 18 l
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The 3,000 sq ft store has a spacious layout and offers a good range of chilled and frozen food, soft drinks, alcohol, grocery and confectionery. However, food to go is where it really shines. And star of the show is its range of hand-made pizzas, baked to order ... in ovens shipped all the way from Italy. “People are always going to want quality, so it was important for us that we could offer the best product we could,” said store manager Daniel Brown. “We import the flour from Italy and make all the dough from scratch. Right now we’re focusing on traditional stone-baked thin crust pizzas, but going forward we can use that dough to make different styles of pizza and breads like focaccia.” Daniel, Franck and Joanna’s father Joseph Giacopazzi even travelled to the historic city of Mantua in Italy, to be schooled in the art of making and serving pizzas. “The key is the quality of the ingredients – the flour as well as the toppings,” said Daniel. “But I think it’s also important to spend time with the staff and ensure they know how to do everything properly. We spent a lot of time thoroughly interviewing staff and individually training them all up to get them up to the standard we were after. It’s second nature to them now.” As well as pizza, the store’s fresh foodto-go section features a coffee machine, locally-supplied pies, cakes and pastries, an ice-cream counter and a chiller filled with freshly-made sandwiches, wraps and salads. “Keeping up the volumes has been a task,” said Daniel. “We produce sand-
Giacopazzi’s new food-to-go area offers freshly-made sandwiches along with pies, cakes and pastries, stonebaked pizzas and ice cream. The pizzas in particular have received tremendous feedback from customers. The store sells 30-40 pizzas every lunchtime and goes through around 150kg of Italian flour a week.
first day and realised we had a much bigger task ahead of us than we’d thought. And the volumes we were doing at the start have maintained. Last Friday night we sold about £900 worth of pizzas. It’s not exactly small numbers. “Personally, I think pizza and ice-cream is a great combination, and we’ll be able to make good use of that through promotions in the future.” Key to the early success of the store’s food-to-go operation have been the young customers from Kinross High School across the road.
When you’ve got 350 people coming through the door in the space of 40 minutes, it can be quite tough to get everyone served. wiches here to go to both stores. Before we opened, Milnathort was selling about 25 to 30 sandwiches a day. Now we’re selling up to 300 between the two. That gives you some idea. “We make our own ice cream, which we’re quite famous for, so it was quite important to offer that here as well. We weren’t sure how that would affect Milnathort, if there’d be a sales impact, but we’ve increased volumes at both quite considerably. “Then there are the pizzas, which have been hugely popular. Our first weekend we thought we’d made three days’ worth of dough, based on what they were telling us in Italy. But we sold out by 8pm on the
“The school has actually posed the biggest challenge in terms of volume,” said Daniel. “When you’ve got 350 people coming through the door in the space of 40 minutes, it can be quite tough to get everyone served. “We have about six or seven staff in the store at that time and four tills open. The juice section is completely cleared out by the time they’re finished. The crisps are all cleared out. “Organisation is important. We try to prepare as much as we can. We’ll cook off a lot of pizzas and have them prebagged so they can just grab them off the shelf. We’ve found that quite effective. “We were concerned about how we October 2016 l
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Giacopazzi’s has a good reputation for wine among its customers, so the new store aims to build on that with a broad but carefully chosen range. Right, team member Lee shows off the latest results from the pizza oven.
were going to manage with so many people coming in. We thought we would have to have them queuing outside, but it is all running quite smoothly, they’re all in and out in a few minutes.” And while school kids might be expected to be big spenders on pizzas, pies and donuts, Daniel said he had been surprised by the popularity of healthier options. “We have a lot of health drinks, salads and healthy snacks, which the school kids are buying a lot of, especially the girls. “It’s been quite interesting. We weren’t sure what they were going to be buying, if it would just be pies and sausage rolls, but they’re actually opting for a lot of healthier options. I wouldn’t have expected such an uptake, but I’m trying to make more room for it now. “With the school and nursery so close, healthy food has to be a focus for us,” he said. “But I think if all you’re doing is putting a couple of wrinkly apples and bananas at the front of the till, it won’t sell. You’ve got to bring in products that are more interesting to customers. Things like protein balls or lentil crisps – they’re actually really good. “I like to push products that differentiate us from the competition. We’ve got a lot of protein-rich snacks and drinks which are very popular at the moment, especially with schoolgirls, fruit and nut packs from Bramik Foods, coconut chips. It is a 20 l
case of having more variety and interesting products. “Their success has been a bit of a surprise, but a nice one, because if we can be seen to be a successful healthy retailer that’s a really positive thing. It will be a much bigger focus for us going forward.” Another aim for Daniel in the coming months is to build more local products into his range. “Having a food-to-go offering is now quite important in convenience and I think local products are becoming very important too,” he said. “Products that are local, that are unusual, that people won’t see everywhere, really help to differentiate our range and we’re going to be thinking about what we can do that sets us apart. I think that’s going to be really important because we do have a lot of competition in the area. “I spent the last three years working at Scotmid so I’ve got a good understanding of how these bigger companies work and what their limitations are, whereas if I wanted to bring a product in I can do it tomorrow. Being independent, we’re a lot more versatile and able to react faster to what customers are buying. “I’d really like to push the different products. We’re already doing a lot of glutenfree bread, diabetic ice cream. Customers seem to be responding well, because there’s not a lot like that nearby. That and our food to go will help us stand out.”
Offering a range of healthy foods is a top priority for Giacopazzi’s Kinross, with healthy snacks prominently displayed at the front counter.
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ADD SOME SPARKLE TO YOUR SALES • £3.3m campaign *
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• 121% RSV growth in the Convenience Channel* • Made with real orange pulp since 1936
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*Data Source IRi Marketplace: 24/07/16. Produced under the authority of Schweppes Intl. Ltd. Orangina and the Orangina logo are registered trademarks of Schweppes International Ltd.
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business, property and legal
Sparklers fizz in name clash Defending trade marks from infringement is important for businesses seeking to protect their brands. Cristal Champagne recently went to lengths to do just that. What was the Cristal case about? Champagne Louis Roederer (CLR), the owner of the Cristal UK and Community Trade Marks, felt that Spanish cava brand ‘Cristalino’ was taking unfair advantage of its reputation, to the potential detriment of Cristal’s own sales. It took the owners of Cristalino to the High Court in order to try and stop them using the name. CLR had a registered trade mark – what did it have to prove? To establish that a likelihood of confusion would be caused, CLR had to prove that Cristal had a strong reputation in the UK. It showed the court vast references in the media to its champagne, including reports of celebrities buying and drinking Cristal and evidence of its use as a status symbol in US hip-hop and rap music. Survey evidence showed relatively strong recognition of the brand among the general public, despite only 40,000 bottles being sold in Britain annually. The name Cristalino is slightly different – did that make Cristal’s claim harder? CLR had to prove that there was a likelihood of confusion between the two products. It did so by demonstrating the similarities of the two marks, and the similarity of cava and champagne. Arguments were made surrounding the possibility of confusing the two names in a noisy nightclub, and the fact that Cristalino may have been taken for a ‘second wine’ or cheaper offshoot brand of Cristal. The court considered the fact that the
by Julie Brown Julie Brown is an associate with Maclay Murray & Spens LLP and a member of the firm’s Intellectual Property & Technology team Julie.Brown@mms.co.uk
Businesses should take care when launching a new product name or designing new packaging or logos, and always check whether any other organisations use similar names or themes. sign was printed on a convex surface of a bottle. Depending on how the Cristalino bottle was stacked on the shelf, the end of the name may be obscured, with only the ‘Cristal’ part of the name being displayed. This would also lead to confusion. Did the court agree that Cristalino was unfairly damaging the Cristal brand? Yes. It was held that any association with a cheap cava could dilute Cristal’s luxury image, leading to a reduction of sales, and that Cristalino took unfair advantage of the Cristal brand. Ultimately, the Cristalino trade mark was held to infringe the Cristal trade mark. We don’t all have a celebrity image – but what can we learn from the case? This case serves as a reminder to
High Streets winning visits RETAIL footfall in Scotland in August was up 0.3%, ahead of the UK average of 0.1%, says the latest BRC – Springboard 22 l
Footfall and Vacancies Monitor. High streets were said to be the biggest winners with the BRC saying
there were signs that new mixed use rather than retail-only high streets were attracting visitors.
businesses to ensure that they are taking steps to protect their registered branding, and provides excellent examples of the various ways in which trade mark infringement can be established in court. Raising a successful action for infringement will prevent subsequent use of the mark by that infringer and will perhaps deter other would-be infringers. Additionally, a successful claim may result in the trade mark owner being awarded monetary compensation for the damage caused by the infringement. Businesses should take care when launching a new product name or designing new packaging or logos, and always check whether any other organisations use similar names or themes. If a business owns a registered trade mark over the name, logo, shape or design of its packaging or product, any third party who deliberately incorporates similarities in their packaging or branding will risk infringing the trade mark owner’s rights. ● Got a legal query? Contact patrick. duffy@peeblesmedia.com and we’ll put it to an expert.
l October 2016
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market news
Bags of fright for big night CONFECTIONERY giant Perfetti Van Melle has released themed packs for Halloween. Chupa Chups Spooky Pizza is covered in jelly snakes and spiders and has a £5 RRP. Perfetti Van Melle is offering retailers shelf-ready packaging and free-standing
display units to create theatre in store. The Chupa Chups Halloween bag has 14 different lollipops and the Fruittella Spooky Family contains blackcurrant and strawberry, cola and lemon, and orange and banana flavours.
Trade marketing manager Mark Roberts said: “We know 80% of confectionery choices are finalised in store and are doing everything we can to help maximise shopper spend. “Fruittella bags featured in the top 25 bags for Halloween in 2015.”
Convenience strategy Jose’s beer on the box BEER brand Heineken has launched a new TV ad featuring football manager Jose Mourinho. The commercial is part of Heineken’s Champion the Match campaign on TV and digital channels. In it Mourinho delivers a motivational speech challenging fans to prepare for match night, no matter where they are or what time zone they are in.
Challenge for cooks BUTTER and spreadable brand Lurpak has launched a multimillion pound marketing campaign with a new TV ad featuring the voice of actor Rutger Hauer. The Game on, Cooks campaign is designed to encourage consumers to spend more time cooking. 24 l
Two channel-exclusive launches as biscuits giant ramps up its c-store programmes BISCUIT and cake giant Pladis is ramping up activity in its convenience and impulse strategy. The work began with the introduction of a new sales team and c-store advice programme in 2014 and now a range of new initiatives is being launched including a new McVitie’s Digestive £1.50 PMP range and the 89p McVitie’s Biscuit barrel range. Trade communications controller Hena Chandarana said: “Our new McVitie’s Digestive PMP and Biscuit Barrel ranges enable retailers to achieve a high margin on our products and offer their customers the number-one biscuit brand at a great value price.
“The past two years have seen our new field sales team successfully increase distribution and strengthen relationships with customers by offering advice and equipment solutions.” A McVitie’s display stand is also being made available to stores. Chandarana said: “In trials, the hard-wearing and spacefriendly unit, not much wider than a packet of biscuits, delivered a 4.8% category uplift, equivalent to an increase of over £700 in sales per store.” The field sales team will also increase focus on new products including McVitie’s Nibbles and Jacob’s Cracker Crisps.
Biscuit back on the box TOFFIFEE is returning to TV screens this Autumn with a new ad that will run for eight weeks, as part of a £5m marketing campaign. Sales director Andy Mutton said: “Toffifee is performing exceptionally well with growth of 18.1% and with this new advert and sampling, we expect significant uplift in rate of sale, pushing further sales for retailers.”
l October 2016
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New look Wall’s
Cider goes spicey SWEDISH cider brand Rekorderlig is to launch a Spiced Plum flavour. The limited edition will replace the brand’s Winter Cider, which was launched in 2009. The 4% ABV drink comes in 500ml bottles. Brand director Ali Pickering said: “The brand isn’t one that stands still, and after six hugely successful years of Winter Cider, we felt it was time for a change.”
Frog hots up THE latest Cadbury Drinking Chocolate is Freddo. Brand manager Raquel Alcobia said: “Given that Mondelez International leads the drinking chocolate market and Cadbury Freddo has a 30 year heritage, this is an ideal partnership.”
SAUSAGE brand Wall’s is being made over. The entire range has been given new packaging and its thick sausage has been given 10% higher meat content and a coarser texture. Brand owner Kerry Foods said the move to reposition the brand will double its penetration in the chilled category over the next four years. Senior brand manager for Wall’s Jessica Lamb said: “The much-loved brand, which was established in 1786, will relaunch with refreshed packaging across the entire portfolio designed to el-
evate its quality credentials. “Wall’s already has 98% brand awareness, but we felt the time was right to refresh and relaunch the brand.
“Wall’s over-indexes at breakfast time when we know convenience is key, so this will be a real focus for the brand over coming months as we look to extend usage and consumption occasions.” Lamb added that Wall’s microwaveable Ready Baked Sausages are growing at 8.5% year on year and have a high repeat purchase rate. Ready Baked Fire Grilled Cumberland Sausages are baked, coated in what’s said to be a unique glaze and then fire grilled for a barbecue taste, that is ready in one minute.
Laundry lines launch PMPs PROCTER & Gamble has released three new price-marked packs for its laundry brands Ariel, Bold and Fairy. The firms says the latest PMPs, which all have an RRP of £1.99, signal its continued support of the convenience sector. The new range features: • Ariel Liquid 9 wash • Fairy Laundry Liquid 9 wash
• Bold 2in1 Laundry Liquid 10 wash Daniel Jalalpour, P&G laundry brand manager, said: We’ve seen time and again that price-marked packs are a powerful tool. By stocking these new smaller sized PMPs, retailers can encourage shoppers to top up on their laundry care products while at their local store.”
Less sugar for kids corner MULLER has reformulated its Kids Corner range. The new recipe has 50% less added sugar, reducing the total sugar content to 10g per 100g. And the new packs will carry a competition giving consumers the chance to win Hasbro toys. Marketing director Michael Inpong said: “We are committed to reducing added sugar across our portfolio.”
The winner SIZZLING Salsa will now be officially introduced as a new flavour in the Doritos range following a consumer competition. There were more than 50,000 entries and the £20,000 prize was won by student Saffron Cullip. October 2016 l
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market news
Taking stock on television Packing them in THE craft lager from Guinness, Hop House 13, has introduced two new packs. The 12-pack of 330ml bottles and a 650ml sharing bottle join the existing single and fourpack of the 330ml bottle. Head of innovation Nick Curtis-David said: “Hop House 13 has proven to be extremely popular, encouraging consumers to broaden their beer repertoires.”
Taste of autumn LIQUEUR brand Bailey’s has expanded its portfolio by adding Baileys Pumpkin Spice. It will be supported by a six-figure marketing campaign featuring social media activity and sampling. The 70cl bottle has an RRP of £14.99 and will be sold in cases of six. 26 l
STOCK brand Knorr is expanding into the easy cooking market with the launch of a dry recipe mixes range, Naturally Tasty. The recipe mixes are made with natural ingredients, making them free from artificial colours, flavours and preservatives. The range includes Moroccan Chicken, Spaghetti Bolognese, Lasagne, Tuna Napolitana, Beef Tagine and Chilli Con Carne flavours. The launch is being supported by £3.4m worth of media investment, which includes a TV ad going on air this month.
Marketing manager Vanni Cataldi said: “Knorr has become famous for our culinary expertise and quality products.
We are now using this experience to launch into the Easy Cooking market with a unique product offering.”
Strength in ads
Marie makeover
MUSTARDS , condiments and packet mixes brand Colman’s has launched new TV and print ads. Each ad shows a scenario where a mustard fan unexpectedly overdoes it with a generous serving of mustard and uses the line ‘Easy Does it’, playing on the strength of Colman’s. Bilboards will also note the strength of the mustard. Brand manager Joanna Watson said: “ The launch initiates a new era for the brand which is re-centring the focus on its core product, to highlight the distinct heat of Colman’s mustard.”
MARIE Claire has been given a new look for the printed magazine and revamped website. Justine Southall from publisher Time Inc said: “The new aesthetic conveys a modern femininity that will appeal to our smart and fashionable audience .”
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Breaded range makes the changes FOOD producer Moy Park has relaunched its breaded product range – Moy Park Chicken Kievs, Goujons and Nuggets. Grant Ferrier, director of sales for Moy Park, said: “We pride ourselves as being market leaders in innovation and staying ahead of consumer trends. Through the relaunch of our breaded range we want to encourage purchase from existing shoppers, whilst attracting a new generation of consumers. “Product attributes of convenience and value remain, which are essential selling
points in convenience stores but we’ve also developed a new recipe. “The range uses 100% breast meat – which means consumers can be assured the products are of the highest quality. “The development team has also created a tastier, crunchier crumb and sweet and savoury batter - and our packaging has received a makeover with new black trays giving the product a highend feel and finish, meaning they will have maximum impact on the shelves,” he said.
Family meals for a fiver
WHOLESALER and symbol groups Nisa is helping parents feed their families on a budget with a new £5 meal deal. The promotion, which launched recently, offers a different range of products every three weeks at just £5 and is, says the firm, aimed at parents with busy lifestyles wanting to pick up a convenient mid-week evening meal without breaking the bank. The first meal deal featured Birds Eye Chicken Dippers (or Quorn Meat-free Chicken Nuggets as a vegetarian alternative), Aunt Bessie’s Crispy Homestyle Chips, Heritage
Petits Pois and Heritage Neopolitan Ice Cream.
Christmas nets MINI Babybel has produced a seasonal sixpack. Each individual cheese has its own wintery wrapper featuring characters like an ice-skater. Head of insight and planning Chloe Feminier said: “Mini Babybel is dedicated to bringing fun and enjoyment to every snacking occasion and the winter packaging engages the festive spirit.”
The meal deal is supported in stores with POS materials including posters and shelf talkers, and features on leaflets delivered to consumers and on Nisa Radio. Selected stores have additional POS such as hanging signs, freezer window stickers and shelf stripping. Greg Goodwin, head of fresh and frozen at Nisa, said: “We’re delighted to be able to launch this fantastic £5 meal deal which not only provides a great value meal solution for consumers but will also help our members to drive footfall and additional sales.”
Playing ball HOME baking brand Dr. Oetker has revealed its latest signing - Chocolate Footballs. The pack, with an RRP of £1.59, includes a mix of white and milk chocolate balls. The decorations are placed on cakes before the icing sets.
Vodka first in spirits range HALEWOOD Wines & Spirits has added Sicilian-inspired Blood Orange Vodka to its Whitley Neill range. It’s the range’s first vodka. Brand manager Tina Connolly said: “The bright orange bottle will create significant standout on shelf and attract new consumers to the premium vodka category.” October 2016 l
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market news
The power season With the Christmas run-in just around the corner what should retailers know about developments, trends and merchandising in the batteries market? BATTERY sales are growing but it can be difficult, though not impossible, for c-stores to grab the benefit, according to Paul Clarke, sales and marketing director for UK batteries and hardware division at Spectrum Brands, which handles Varta batteries. “The overall volume of battery sales is up, driven largely by grocery and discount retail, where promotional packs and multi-buy deals continue to offer a compelling proposition,” he said. “However, as an impulsedriven purchase with high potential profit margin, batteries are also a powerful opportunity for the independent and convenience sectors. “The battery sector is incredibly competitive and most brands offer tiers of power to suit the needs of different devices. Where space is no object, retailers can provide a comprehensive selection of brands, battery sizes, power levels and price points. However, often, consumers can feel overwhelmed by this choice. Understanding what each cell can do, as well as the demands of your local community, is essential for developing a sales strategy that works. “For many consumers knowledge of batteries is limited to the main sizes, which is to be expected for a product that is only purchased two or three times a year. “According to the latest data from European Portable Battery Association, AA and AAA alkaline batteries remain the most popular and make up 60% of all batteries used in the UK. Extending to include 9v, C & D sizes will meet the 28 l
Batteries focus
The best-selling Varta consumer batteries are in its High Energy range but Max Tech for hi-tech digital devices and its Longlife batteries for clocks and remote controls also do well, the company says.
While Christmas might be seen as the major battery sales opportunity of the autumn and winter there are other possibilities too, including this month’s Halloween and next month’s Bonfire Night, says Energizer.
demands of most consumers. “For independents with a little more space, there is also a growing market for button cells. These coin-shaped batteries are used in an increasing variety of devices, including hearing aids, fitness monitors, watches and car keys.” • At Duracell UK associate marketing director Christina Turner said: “The category has been showing strong performance levels recently, with 3% value growth. Duracell
remains the category leader, holding a market share of 51%. “Every household needs batteries, but very few people go to the store with batteries on their shopping list. That’s why it’s more important than ever to have multiple visible sites for batteries around the store as purchases are often made on impulse.” At Energizer, brand manager Eva Jacobs said: “The AA primary battery is the numberone selling battery in the inde-
pendent channel, accounting for 51% of total primary battery sales. Over 74% of these sales are in the four-pack format. “With limited stock in store most convenience and independent retailers will sell the smallest packs of batteries – tending towards four-packs. “For a fuller range we recommend also carrying a stock of miniature and speciality batteries, which account for 9.1% of the total battery category.” Christmas isn’t the only lateyear festival to boost battery sales, Halloween and Bonfire Night also represent significant selling opportunities, she said. And there are, she suggested, things that convenience retailers can do to boost sales. “Sales are increasing in stores which follow the principles of battery merchandising: • Ensuring availability of key pack sizes – AA, AAA, 9V, C, 2032, LR44 and D Cells. • Offering value to consumers via promotion or extra free packs, giving consumers reason to buy. • Using secondary locations to sell batteries and remind people you sell batteries.” 52% of unplanned sales are attributed to secondary locations such as at the checkout or in areas such as torches, health & beauty, baby and household cleaning products, she added.
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Ready for variety Cheestrings set to mix it after school CHILLED foods specialist Kerry Foods is adding to its Cheestrings brand portfolio with the launch of Scoffies, a range of three-in-one snacks designed to provide a new type of after-school snack. The new range includes three varieties: Mini Pretzels, Real Cheese Chunks, Apricot, Cherry Cubes & Yogurt Raisins; Crunchy Crackers, Real Cheese Chunks, Cherry Strings, Biscuits & Chocolate Raisins; and Crunchy Crackers, Real Cheese Chunks, Fruity Mix & White Chocolate Shortcake Pieces. Each of the Scoffies packs has a resealable tab . Brand manager Rebecca Jakob said: “We’ve done a lot of research with kids, mums and dads, and what we’ve uncovered is the fact that after school kids are ravenous and parents are having to provide them with three separate snacks to keep them going till dinner time.
Each snack could be anything from a packet of crisps or pretzels, for that savoury element, to a nutritious element – piece of fruit or fruit wind-up – to a sweet element like a chocolate bar. “What Scoffies provides is all of that in one snack solution – a savoury element, a sweet element and a dairy element with the cheese. It’s very much based on consumer insights. “When we tested the SKUs among kids, the one thing that stood out was that they absolutely loved trying pretzels with chocolate raisins or cherry strings wrapped around a piece of cheese. “They love the whole element of mixing things up and snacking their own way, rather than just eating a packet of crisps of chomping on a chocolate bar. “We really believe that Cheestrings Scoffies are really going to mix up the kids’ dairy snacking category.”
McIntosh of Strathmore has been looking into how c-store retailers use its ready meals and if they are becoming c-store must-stocks. It put some key questions to chilled food award winner Scott Graham at McLeish in Inverurie Q: Why is chilled so important for c-stores today? A: The key thing is that consumer habits are changing and expectations are higher. They expect more choice and range availability and price is just as important. People now talk about the ‘consumer mission’ – if their mission is ‘tonight’s dinner’ we’ve got to have the range availability and choice available to meet that requirement. Chilled accounts for somewhere between 30% and 40% of our business, I’d say, and we’re always trying to increase the space dedicated to chilled. We are actually in the process of buying another two-metre multideck chiller as people are demanding more choice and variations in chilled. Q: Which of our McIntosh Ready Meals would you define as a ‘c-store must stock’ and why? A: I would probably say our top three muststocks are the Scot-
McIntosh of Strathmore Macaroni Cheese is a hit at McLeish in Inverurie, where shoppers often buy several ready-meals.
tish Stovies, Macaroni Cheese, and Haggis Neeps & Tatties. They are more suited to what our customers want and with more and more people living on their own these products are the perfect fit for the chilled category. We even find sometimes people will pop in for three or four readymeals at a time for different people in the family. Q: Do McIntosh Ready Meals help you extend your product offering in chilled? A: McIntosh will bring
Scottish elements to the category and offer traditional recipes to general c-stores as we try to extend the range and offer more choice. You’re always looking for a point of difference but customers will respect the brand because they see it across larger multiples and also smaller stores just along the road. “They know what it is and that they’re picking up something of good quality and they perhaps don’t need to travel all the way to a larger store to get that reassurance.”
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healthier food and drink
Bread giant on the pulse Little Pots of Goodness four-packs from Rowan Glen are available in four fruit flavours.
Pots of demand Scottish dairy brand Rowan Glen has launched two new ranges of highprotein yogurts that feature zero added sugar. Commercial manager Donny Gillies said: “The Pots of Goodness range was developed as result of growing consumer demand for food that is naturally low in sugar, with added health benefits in addition to the nutritional value found in dairy.” The new Greekstyle yogurts are available in the 450g Big Pot of Goodness range as well as in a range of four-packs of 120g Little Pots of Goodness.
The four-pack is available in Strawberry, Peach & Apricot, Raspberry & Blueberry, and Black Cherry flavours. The big pot comes in Strawberry, Peach & Apricot, and Natural varieties. Gillies said: “At Rowan Glen we create great-tasting dairy products that are wholesome and nutritious. “Our new yogurt range is a great way to get your protein fix in just one pot and supports the company’s objective to grow through product innovation within the Rowan Glen brand, with a focus on distinct benefits and natural offerings.”
The 450g Big Pot of Goodness range is designed for sharing and has a choice of three flavours. 30 l
BAKERY firm Warburtons has added a new protein range to its portfolio. Baked using pulses and grains, the new range includes highprotein bread, rolls, wraps and sandwich thins. The 400g Protein Wholemeal loaf and four-packs of rolls, thins and wraps each have an RRP of £1.20. Innovation director Darren Littler said: “As the leaders in bakery innovation for over 140 years, it is our role to adapt and expand our ranges to meet evolving consumer tastes
Warburtons has responded to consumer demand by introducing high-protein products.
and needs. “It became clear to us that there was a real demand for a protein-packed option that
tastes just like normal bakery, and our new Protein range makes it easy and convenient for people to enjoy more as part of their daily routine.” The launch is being supported by a PR and digital marketing campaign.
Sealing the deal A trend towards clean eating has made consumers more conscious of food additives argues Nakd Wholefoods brand owner Natural Balance Foods. Marketing director Marina Love said: “Research shows that 64% of consumers eat snacks to improve their mood so they’re looking for indulgent products. “However, we also know that shoppers want sharing-sized, resealable bags that they can dip in and out of. “That’s why we’ve
launched Nakd Posh Bits. They tick every box.” Made from fruit, nuts and dark cocoa with no added sugar or syrups, Posh Bits are gluten, wheat and dairy free. Love said Natural Balance brands Nakd and
Trek are both performing well in c-stores. Nakd has grown 147% since July 2014 to be worth £6.9m in the channel and in the past year is up 28%. And sales of Trek in cstores rose by 99% year on year, she said.
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new
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JOIN THE REVOLUTION NaturalBalance - SG - linda.indd 1 160909_ScottishGrocer_FullPgPoshBitsAd_AW.indd 1
22/09/2016 12:18 10:56 09/09/2016
healthier food and drink
Muscling in on health demand THE biggest Scottish dairy firm Graham’s the Family Dairy says it’s always looking for opportunities to innovate and, with demand for healthier choices in mind, it has recently introduced two new products. Graham’s Organic Whole Milk was launched in August. The milk is non-homogenised, meaning it has the “cream on the top” nature of milk likely to be remembered, perhaps fondly, by consumers of a certain age. But there’s more. The new milk “offers the added bonus of more essential fatty acid Omega 3, as is found in organic dairy,” a spokesperson said. “We had been getting lots of tweets from customers asking us for a product like this, so we responded.” The second new line, Gra-
C-stores see waters rise Quark is a soft cheese which is naturally fat free and high in protein and can be used for cooking sweet and savoury dishes.
ham’s Quark, is a soft, spoonable cheese that is naturally fat-free and high in protein. The spokesperson said: “It is an extremely versatile product that can be eaten on its own or used for cooking and baking a number of sweet and savoury recipes. “With twice the amount of protein as low-fat yogurt, quark is already popular with
slimmers and those who are looking for naturally healthier, low-fat options.” Graham’s Quark is available in natural and vanilla flavours. Graham’s sees protein continuing to be in demand from consumers. “High-quality protein products are essential for building muscle and dairy products are a great way to obtain this,” it said.
Investing for a new mix COCA-COLA European Partners is spending £30m in five years to reformulate existing drinks and introduce new products to meet demand for lower and no-sugar products. Trade communications manager Amy Burgess said: “Since 2005 we have reformulated 27 of our drinks and everything we sell has a lower or no-sugar option.” Burgess said the latest step in the strategy was the introduction of Coca-Cola Zero Sugar in the summer which was launched with a £10m marketing campaign. She said: “The campaign en32 l
courages consumers to try the new and improved Coca-Co-
la Zero Sugar by highlighting that it tastes more like Coke and looks more like Coke than the original Coca-Cola Zero. “This move is a deliberate attempt to change the mix of our portfolio between sugar and no-sugar drinks.” CCEP introduced a new sports cap bottle for its Glacéau smartwater this year and Burgess said: “Bottled water continues to dominate the soft drinks category, as shoppers increasingly make health conscious choices. “Glacéau smartwater offers an alternative to waters which focus on source.”
AS consumers become increasingly concerned about making healthy choices they need to be educated on the benefits of hydrating with plain bottled water, according to Highland Spring. Head of customer marketing Carol Saunders said: “Customers are more aware of the healthy choices they need to make throughout the day, whether it’s part of a balanced breakfast, their lunch box or meal deal and even as a healthy evening refreshment with their dinner. “Naturally-sourced plain bottled water remains the only drink on shelf that contains no sugar or artificial sweeteners.” Saunders added that in c-stores plain water, consisting of still and sparkling, grew by 10.4% in the year to August 2016 and said: “This popularity is testament to the nature of the convenience sector, where bottles and drinks are often sought after for that immediate hydration.“ She continued: “Convenience stores should look to further exploit this opportunity by stocking in-demand formats such as Highland Spring PET bottles or sports cap bottles .”
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healthier food and drink
Going right at the lights Hydration with fruit mixed in JUICE brand Sunmagic has launched a new range of sparkling juice drinks for children. The Hydra Fizz range contains 50% fruit juice and is made using spring water and the manufacturer says it provides one of the recommended five-a-day fruit portions. It comes in six flavours: Tropical Twist, Berry Medley, Apple Crush, Very Cherry, Fruit Smash and Zingy Lemon. The 300ml PET has an RRP of 45p. • In a survey of 18-40 year olds by flavoured water brand Perfectly Clear 70% reported poor availability and visibility of sugarfree options in shops, 45% felt there are not enough sugarfree options and 33.5% think sugar-free options are too expensive. The Perfectly Clear range of eight flavours is available in 500ml bottles with RRPs from 49p to 69p. 34 l
BREAKFAST cereal Weetabix has put its nutritional details on its pack fronts using the new “traffic light” system. Quoting Shopper’s Voice research, Weetabix says almost seven in 10 people are concerned about the health benefits of cereal and 65% are looking to reduce sugar intake in their diet. Head of brand at Weetabix Kevin Verbruggen said: “These concerns are being reflected in consumers’ purchasing choices, as higher-sugar cereals face a decline in sales, while Weetabix sales have grown £2m this year to date.” He continued: “Shoppers tell us that they’re often confused by the wide range of cereals, and the easy-to-read traffic lights make it simpler for health-conscious shoppers to make a quick, informed choice.” • Quaker Oats has gone on TV to launch its Super Goodness range. The 20-second ad opens with an image of Quaker Oats in the shape of a heart and closes with the line: “Support your immune system with Quaker’s new Super Goodness range.” Marketing director Jeremy Gibson said: “The advert focuses on the health benefits of Super Fruits at a time when consumers are increasingly seeking a wholesome, tasty breakfast.” The Super Goodness range has two Super Fruits and three Super Grains varieties. • Oats brand Moma says it has recorded a 65% increase
Weetabix has put “traffic lights” style nutritional information on the front of its packs to help consumers looking to make a healthy choice.
The new Super Goodness rage from Quaker Oats comes in two fruit and three grain varieties.
in sales of its porridge since it made the entire range glutenfree in April 2015. The latest addition to the Moma range is Raspberry and Coconut Bircher Muesli Mix with quick-soak oats.
Moma founder Tom Mercer said: “This is the brand’s first do-it-yourself Bircher Muesli. “With 15% of consumers buying gluten-free, there is an appetite for free-from options.”
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healthier food and drink
Sugar cut as drinks go low New juice-based lines aim at the health-conscious SOFT drinks and even fruit juices have come under pressure from activists expressing concern on sugar consumption recently. But soft drinks manufacturers have been responding to what they see as changes in regular consumer demand and have been launching new lower-sugar lines. For example, AG Barr has released Rubicon Light & Fruity, a new range with half the sugar of other juice drinks. The firm describes it as “a winwin” for consumers. The new line-up includes a Light & Fruity version of the brand’s best-selling Mango flavour, plus Mango & Coconut, and Mango, Lime & Mint. “Innovation, choice and health are the three key drivers for purchase within ambient juices, with products delivering on health and taste driving the majority of category growth,” said Adrian Troy, AG Barr’s head of marketing. AG Barr recommends that retailers merchandise Rubicon Mango Light & Fruity beside regular Rubicon Mango and range the three Light and Fruity flavours together. • Feel Good, the natural soft drinks brand owned by Nichols, has revamped its range and branding, introducing new flavours and redesigned packaging in a bid to appeal to its target audience – healthconscious, urban, female consumers, looking for healthier soft drinks. 36 l
Rubicon Light & Fruity, a new range with half the sugar of some other juice drinks.
Feel Good, still or sparkling drinks aimed at health-conscious, urban, female consumers.
Feel Good drinks are a mix of 100% natural fruit juices and still or lightly sparkling water, referred to either as ‘Refreshingly Still’ or ‘A Bit Bubbly’. They contain no added sugar. Launched last month, the new Feel Good range will be, says Nichols, widely available in grocery multiples, convenience stores, wholesalers,
and on-trade outlets. Packs include 275ml glass bottles, as singles and in four-packs, 750ml glass bottles, 400ml PET, and Feel Good Kids in 275ml tetra wedges. Becky Unwin, Feel Good Drinks senior brand manager, said the firm had found there is an appetite for products that tasted good but which used natural ingredients and no added sugar. “We’re investing heavily in trade and consumer marketing around the re-launch to introduce the new brand identity and support the trade in making the most of the opportunity Feel Good presents,” she said. • And Vimto, another Nichols brand, is pushing the noadded sugar range that forms part of its core Vimto and Vimto Remix lines with a nationwide trade marketing initiative, including POS materials, in-depot displays, coupons at till points, and online advertising. The activity is designed to increase consumer trial of the product, and help retailers capitalise on growing demand for low and no-added sugarsoft drinks, the firm said. Vimto No Added Sugar range sales have increased by 11%, which is six times faster than the no-added sugar category, and Vimto Remix, which is a no-added sugar drink, has added more than £1.5m sales to the category since its launch earlier this year, Nichols said.
Cooking up new uses
PORRIDGE sales in the UK continue to grow, as the oat cereal’s many health benefits make it the yearround breakfast of choice for health-conscious consumers, says Scottish porridge and oatmeal producer Hamlyns of Scotland. But these days porridge isn’t just a good way to start the day, it reckons. Hamlyns has seen significant increases in sales of its instant porridge pots and sachets, as porridge is increasingly used as an on-the-go or office-based breakfast, lunch, or healthy snack. Porridge pots are also very popular with walkers, cyclists and outdoor enthusiasts, truck drivers and site workers who are looking for an energy boost in the middle of an active day, the firm says. It sees its oatmeal sales also increasing and oatmeal featuring in an increasing number of online recipes posted by foodies and bloggers. Hamlyns has recently re-launched 500g packs of Hamlyns Scottish Oatmeal in new packaging, designed to be in keeping with the rest of the range. With ‘suitable for home baking’ flashes on the packs, some retailers now merchandise the oatmeal in both cereal and home baking aisles, it says.
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27/09/2016 14/04/2015 12:01 11:43
PMPs
Price-marked packs have grown to dominate many convenience stores’ product displays and they now play a major role in almost every product category. With predictions of tight consumer spending ahead and the forcible removal of PMPs from tobacco products we could see PMPs become even more important in all those other categories where they are permitted. We asked suppliers and brand teams across food and drink about their latest thoughts and latest activity on PMPs.
Price transparency spirit of the times PMPs have been around for many years but they gained huge prominence in the period that followed the financial crash of 2008. But not all categories embraced the technique at the same speed. In drinks it took some time before wines and spirits began to make wide use of PMPs. But that has changed considerably in recent years and the large drinks firms have been catching up fast. Now many of the biggest names and brands in wines and spirits produce a variety of standard-sized and fractionally sized PMPs specifically for convenience stores. Diageo is a case in point. The global spirits giant with brands such as Smirnoff, Bell’s, and Captain Morgan, is now also a major provider of PMPs and it’s quick to point out what it sees as the advantages of price-marked packs. Some 20% of spirits shoppers make impulse purchases in convenience stores its own figures say. And, remarkably, PMPs sell, on average, three times the volume of standard bottles per point of distribution. Over half (53%) of consumers are more likely to try a new product if it’s sold as a PMP, the company has found. So why are PMPs doing so 38 l
53%
of consumers more likely to try a new product if it’s in a PMP Spirits came later to PMPs than many other categories but now even the biggest names are frequently available in price-marked bottles. Drinks giant Diageo has released PMPs across a range of brands and bottle sizes.
well and how does it think convenience retailers can use that to their best advantage? “PMPs are a growing trend and consumers are increasingly looking out for them in convenience stores. Having a range of PMPs available in your store instils a sense of confidence and trust between you and your shopper and creates a perception of value,” argued Diageo GB head of category development James Cragg. “PMP spirits have more than tripled in value in the past year, and Diageo’s 70cl PMP SKUs
have performed on average 31% ahead of the standard SKUs. “Gordon’s and Captain Morgan Spiced PMPs both saw great success when they launched in 2014, and now consumer-favourite Johnnie Walker Red Label has joined the Diageo PMP range in 70cl and 35cl.” And the firm reckons many retailers see real benefits in stocking PMPs. Quoting HIM the firm notes that retailers say: PMPs are key to driving sales; they sell faster than standard packs; they save re-
tailers the time normally taken in pricing products; they improve retailers’ price image; and they signal that they want to compete on price. The drinks firm’s top tips on PMPs and general spirits merchandising in convenience outlets include: • Maximise spirits purchase in your store by stocking the right range, in an ‘easy to shop’ layout, and by offering price-marked packs to reassure shoppers they are getting fair value. • Consider the mission your shoppers are on, which is frequently to pick up ‘something for tonight’. • Include a variety of fractional sizes of spirits (50cl, 35cl, 20cl) in your range. • Stock PMP premixed drinks in the chiller. • Site all category brands together, for example all vodka brands together. Fasterselling categories and products should be at eye level. • Place best-sellers in the centre of the category as they act as anchor brands to help shoppers identify a category. • Price items clearly (PMPs have clear pricing already on pack of course. But, in general, recognise that visible pricing is a key factor influencing a typical shopper’s decision to purchase).
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se Bes lle t rs
Take advantage of our widest ever range of over 50 PMPs*
Stock the range Improved perceived value, speed of sales, convenience and customer trust ** make stocking PMPs a great option, and 63 per cent of retailers say they intend to stock more PMPs in the next year.**
For great category advice and a printable PMP shopping list visit www.deliciousdisplay.co.uk *AVAILABLE IN NON PMP. RETAILERS FREE TO SET THEIR OWN PRICES
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**
Him! Bitesize Insight; Price-marked packs, August 2015
22/09/2016 11:01
PMPs
Walkers value 39p PMP range includes Monster Munch, Snaps, Frazzles, Cheetos and Chipsticks.
Value on impulse a snacks win-win WITH many shoppers looking for value for money and one in four shoppers buying on impulse price-marked-packs can provide real benefits to retailers, suggests Pierre Jackson, category insights controller at Walkers brand owner PepsiCo. Quoting HIM research he said 61% of shoppers say that knowing a shop sells PMPs makes them more likely to visit. The top 12 £1 sharing snack lines account for two thirds of sales and Walkers, he said, has 11 out of the 12 bestselling branded £1 PMP sharing snack lines. They’re part of a collection of PMP sizes and packs designed to serve
New 59p PMPs available on Ritz Crisp and Thin.
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many different types of consumer demand. Walkers value 39p PMPs allow retailers to demonstrate value for money to shoppers, he said. The 39p PMP range includes Monster Munch, Snaps, Frazzles, Cheetos and Chipsticks. Last year, PepsiCo launched pricemarked singles packs in its core ranges including Walkers standard bags, Wotsits and Quavers. Jackson said Walkers PMP crisps sell on average 20% quicker in impulse than nonPMP variants. and Walkers standard PMPs sales are currently growing by 7% a year. Walkers Grab Bags are also available to independent retailers in 75p PMPs across the snacks brand’s core range. • Mondelez International’s snack brand Ritz Crisp and Thin has recently seen the launch of three promotional 59p PMPs across its 30g range, including the new Sweet Red Chilli on-the-go bag.
Marking growth AMONG categories that are particularly important to the convenience channel confectionery stands out as one that has used PMPs extensively, especially in the tough economic times since 2008. The activities look to have paid off, with growth being maintained in what is a very established sector. Bep Dhaliwal, trade communications manager for Mars Chocolate, said recent category performance had been positive. “Over the past year, the total confectionery category has continued to show its strength, with the overall market seeing an increase in value sales of 1.1% year on year. Contributing to this growth is the rise of the total chocolate market, which has enjoyed an increase of 1.7% year on year. “A rise in trends like sharing, which has seen consumers favour treat bags and pouches, as well as boxed chocolates, has contributed to category sales – with increases in sales of 6.3% and 2.3% respectively. “PMPs reassure shoppers they are getting the best value for
Mars, Snickers, Twix, Bounty, and Maltesers singles, from Mars Chocolate UK, are now permanently available in price-marked packs with a new RRP of 50p.
Mondelez International added two of its top 10 singles brands, Starbar and Cadbury Wispa Gold, to its promotional PMP range this summer.
money, and provide the perfect chocolate treat for a night in with friends and family. They’re also a great way for retailers to grow sales in store and attract the attention of customers,” she said. “Earlier this year, Mars Chocolate UK extended its popular PMP range. Mars, Snickers, Twix, Bounty, and Maltesers singles are now permanently available in price-marked packs with a new RRP of 50p.
“The rise in popularity of the Big Night In occasion has resulted in sharing pack PMPs playing an increasingly key role in the confectionery market. Mars Chocolate’s range of popular PMPs includes its £1 treat bags, with Maltesers, Galaxy, Minstrels and M&M’S all available at a set price, as well as the large Galaxy £1 block lines - all of which have seen impressive growth in recent months.”
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Unique Drumstick and Refreshers flavours now available as Bon Bons Now the fastest growing Bon Bons brands Already the most widely distributed Bon Bons brand The Bon Bons category is seeing consistent double digit growth (up +17% year on year)*
STOCK UP NOW! * Source: IRI total marketplace value data to 17.07.16
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PMPs
PMP biscuits in convenience and impulse channels are worth £37m, with value sales up 12% year on year to account for a third of year-round biscuit sales in the sector, the highestever share, says Burton’s Biscuit Company.
At Mondelez International, trade communications manager Susan Nash said PMPs are good for shoppers and great for retailers. “For shoppers, PMPs reassure them that they are not being overcharged in convenience, contribute to positive price perception and can be a driver of store choice. “For retailers, improved perceived value, speed of sales, convenience and customer trust make stocking PMPs a great option, and 63% of retailers say they intend to stock more PMPs in the next year. “Mondelez International is now offering its widest ever range of PMPs across all categories, allowing retailers to take advantage of some
The £1 RRP price point is a key sales driver for the convenience channel, said Wrigley’s Dan Newell. 42 l
Time to innovate of the great benefits, including many bestselling Cadbury tablets, countlines and chocolate bags and Trebor and Maynards Bassetts in candy confectionery. “The company added two of its top 10 singles brands, Starbar and Cadbury Wispa Gold, to its promotional PMP range this summer. “Ensuring every customer notices a PMP or any promotional offer is critical, the number one reason for purchasing on impulse is incentivised by a deal or promotion. A secondary POS display in a high-traffic area can be very effective as it will improve visibility. “PMPs are a type of promotion, so retailers should consider how much of their stock they want to be perceived as ‘on promotion’. “It can also be confusing to have PMPs where retailers are offering product group promotions such as meal deals, so check the PMP price doesn’t undermine another promotion in store, confuse or - even worse - mislead the consumer.” • The sugar confectionery category has seen an increase in the number of price-marked packs available as consumers look for value, reckons Dan Newell, confections marketing manager, with Wrigley.
“With perceived higher rates of sale, PMPs are favoured by retailers who look to offer consumers quality and value for money,” he said. Wrigley extended its range of PMPs in July 2015 for its sugar confectionery brands Skittles and Starburst, by introducing hanging bags with a £1 RRP price flash. “The £1 RRP price point is a key sales driver for the convenience channel. We have seen an increase in sales of 82% in our PMP hanging bags since the launch of our latest PMP lines,” said Newell. • In biscuits Burton’s says in recent years it has doubled its sales of PMPs of brands such as Maryland, Jammie Dodgers and Wagon Wheels. PMP biscuits in convenience and impulse channels are worth £37m, with value sales up 12% year on year to account for a third of year-round biscuit sales in the sector, the highest-ever share, said David Costello, head of category and shopper management at Burton’s Biscuit Company. “As one of the first FMCG companies to introduce pricemarked packs, we know how important they are to shopkeepers keen to offer their customers Britain’s best-loved brands at competitive prices,” he said.
THE main reasons shoppers like price-marked packs are that the pricing is clear and transparent, they look like a special offer, they provide better value for money and they help them stick to a budget, said Adrian Troy, head of marketing for AG Barr. But with price-marked packs being used more frequently, as manufacturers across all categories realise their importance, there is a need to innovate to maintain impact, he said. Barr now has a programme that mixes PMP and multi-buy activity on several of its brands. • “Value for money plays a big part in consumers’ shopping decisions and price-marked packs are a great way for retailers to encourage sales,” said Amy Burgess, trade communications manager at Coca-Cola European Partners. “As a business we’re committed to offering a wide selection of PMP products. “The popularity of our PMP offering within the Coca-Cola portfolio is reflected in the fact that 500ml PMPs are currently worth £42m to indies and symbol retailers, having grown by 18.8% year on year.”
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PMPs
New chiller PMPs aim to catch Christmas cheese shoppers in convenience stores and to spread the price-marked effect
A tasting in a pack THE new Cheese Tasters pack from Lactalis McLelland is aimed specifically at the convenience channel. Price-marked at £3 the Cheese Tasters pack contains 12 pieces of cheese, all individually wrapped, across six varieties, including : a Brie and a Camembert from French dairy producer President; Crema Bel Paese from Italian market leader, Galbani; and Scottish cheddar Seriously Strong. Retailers can source the Cheese Tasters pack through major wholesalers including Nisa, Londis, Costcutter and P&H – for availability in store from late November. Cheese Tasters come in a case size of eight and Lactalis recommends that retailers stock it in the middle of their chilled dairy fixtures. It also suggests using POS materials on shelves carrying savoury biscuits or Christmas fare to highlight that the Cheese Tasters pack is available in the chiller.
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Price spread CHILLED foods supplier Kerry Foods is bidding to boost sales of butters, spreads and margarines in convenience stores with a new line-up of Kerrymaid price-marked pack spreads. Available now, Kerrymaid Buttery, Kerrymaid Spreadable, Kerrymaid Sunflower Light, and Kerrymaid Olive will all feature price-marked packaging. Quoting Nielsen Scantrack and Kantar Worldpanel research findings Kerry Foods says the butters, spreads and margarines category is now worth £1.25bn and products from the category play a role in one in five meal occasions in Britain. “There is a huge opportunity for a range of quality, competitively-priced offerings
from a brand that we believe will resonate strongly with UK shoppers,” said Sally De’Ath, senior national account manager for convenience at Kerry Foods. “More than three quarters of UK households – 20m – buy into this category, and our research shows they are looking for quality offerings at competitive prices from a brand that they know will deliver on taste.” The new PMP line-up, available to order through chilled and fresh delivery service Fresh to Store (Kerryfresh), includes: • Kerrymaid Buttery – described by the company as the lead SKU in the range and made from buttermilk to deliver a strong butter-like taste (PMP £1.49 500g)
• Kerrymaid Sunflower Light – a lower fat option with 85% less saturated fat than butter (PMP £1.49, 500g) • Kerrymaid Spreadable – made to spread straight from the fridge (available in 500g PMP £1.69 ) • Kerrymaid Olive – made with Mediterranean olive oil (PMP £1.69, 500g) “Buttery and Spreadable formats now make up 50% of the BSM market, but healthier options such as Olive and Sunflower Light are also growing,” said De’Ath. Free point-of-sale material designed to help push sales during the launch period will be available to retailers from Fresh to Store van sales reps and at h t t p : / / s h o p. f re s h t o s t o re . co.uk/pos
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22/09/2016 14:14
Christmas confectionery
67%
of shoppers who bought seasonal confectionery early bought again
74%
of total Christmas chocolate sold last year was in the boxed chocolate categor y
56%
of the time when twistwrap confectionery is consumed three or more people are present
80%
of all boxed chocolate sales are accounted for by the top six brands
Seasonal novelties helped boost sales of Christmas confectionery to £706m last year and Nestlé has reported that 16m UK households shopped in the category in 2015, an increase of 1.3m households in the last four years.
Seasons to be cheerful?
IN many categories of food and drink the sales period in the lead up to Christmas can be vital, and that’s certainly true of chocolate. Quoting figures from Kantar – how much Worldpanel, Nestlé said seaimpulse sonal impulse sales of confecconfectionery sales tionery rose by 3.7% to a valgrew last ue of £22.1m last year. Christmas A company spokesperson said that 16m households bought seasonal confectionery in 2015, which is an increase of 1.3m households since 2011 and added: ch – how mu “Consumers love the novelte ola c-store choc ty and excitement seasonal sales grew in the treats provide. last quarter “The early season is parof 2015 ticularly important as 67% of
3.7%
2%
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Chocolate manufacturers are launching new packs and products for the busy festive sales season shoppers who bought seasonal confectionery in the early season returned to buy again.” Mondelez International refers to Nielsen Scantrak data to report that last Christmas confectionery was worth £706m and added that in cstores chocolate grew by 2% in the last quarter of the year. Mars Chocolate also refers to Nielsen figures saying that one in three households buy a chocolate treat product over the festive period.
Trade communications manager at Mars Chocolate, Bep Dhaliwal, said: “Christmas is the most important time of year for chocolate sales as consumers stock up on family favourites during the season.” Dhaliwal went on to introduce the Mars range for this Christmas saying that its mix of new products, best-sellers and POS will help bring the magic of Christmas to life in store. The Maltesers Merryteaser Reindeer is to be supported
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Christmas confectionery
by a range of POS and Galaxy Gift for You White is being rebranded. Quoting Nielsen figures, Dhaliwal said boxed chocolate sales accounted for 74% of total Christmas chocolate confectionery sales in 2015 and the Celebrations tub remained the top seller in the category, worth £41.7m. She added that Galaxy is being made available in an advent calendar alongside the Maltesers and Mars varieties. The firm’s selection box range includes Galaxy, Maltesers and Snickers packs. New Mondelez seasonal products include Cadbury Dairy Milk Snowballs and a Santa-shaped box of Dairy Milk miniatures. Also among its seasonal specials are 90g and 200g Dairy Milk advent calenders and a 500g Cadbury Roses pouch. The company will be repeating its Cadvent promotional campaign which last year saw 24 events take place across the UK – backed by high social media engagement and TV advertising. And in a new scratchcard promotion Mondelez is offering consumers the chance to win shopping vouchers. A spokesperson said: “Consumers simply have to buy three Cadbury products to receive a scratchcard and if three Santas are revealed on their card, they will win £500 of love2shop vouchers.” Cadbury will match the prize for the retailer in the store where the winning ticket was bought. Nestlé is bringing back its Smarties Little Choc Penguin and the white chocolate Milkybar Polar Bear Cub after a successful Christmas for each in 2015. A spokesperson said: “Together they are worth over £1m in sales value. Mums love them because they offer a small treat from known and trusted brands whilst kids find them special, novel and fun.” The two kids’ brands are also available
Mondelez is offering consumers the chance to win a shopping spree in new gift packs. As well as sweets, the Milkybar and Smarties 3D Activity Packs contain colouring pencils and pictures to be coloured in and scanned on to a tablet or smartphone where consumers can see them become animated. Nestlé referred to Kantar research saying that 65% of all twistwrap confectionery is consumed during the evening and that in more than half of those occasions 48 l
Familiar brands are wrapped up in new packaging for the festive season. This year’s choices include an advent calendar from Mars, the return of the Maltesers Merryteaser Reindeer single pack, a wide range of selection boxes including those from Galaxy, Snickers and M&Ms and Mondelez has put miniature versions of its Cadbury Dairy Milk into a seasonal Santa shaped pack.
The big confectionery companies stress that retailers should offer the right Christmas range at the right time. The Mars spokesperson said: “Christmas is a busy time in store so ensure you use impactful POS to drive sales and bring the festive season to life. “Best sellers need to be on the hottest shelves at eye level, where shopper attention is naturally focused.”
Nestlé says Quality Street Matchmakers helped boxed chocolates outperform the segment last year.
there are three or more people involved. It says its Quality Street tubs and tins remain firm sharing favourites. The spokesperson said: “Last Christmas saw the launch of the Quality Street 550g Pouch Bag. “The pouch bag is ideal for the more informal sharing occasions younger consumers enjoy, as well as topping up tubs when chocolates run low. “It proved a great addition to the category, with 61% of sales being incremental.” The company reported good sales for Quality Street Matchmakers and After Eight Straws last Christmas saying that sharing boxed chocolates outperformed the rest of the segment with sales up 3.4% and that 80% of sales came from the top six brands.
Kids packs contain pencils and pictures as well as sweets Mondelez advises that retailers should prepare early for the season and should range correctly at different stages of the festive selling period.
Mars says its Celebrations tub was the best seller in the boxed chocolates category last year.
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Christmas confectionery
Taking to the screens New products and brand promotion on the Ferrero Christmas list FOUR TV campaigns will be at the heart of Ferrero’s £8.1m media activity this Christmas as it launches 10 new products. Ferrero Rocher will be back on screen with the return of its Make Your Moments Golden ad from the start of November. The campaign will also include out-of-home adverts, social media interaction with 750,000 Facebook followers, an interactive new website, and a nationwide sampling campaign. And £2.85m will be spent promoting Raffaello including its first ever TV ad. On air from October, the film highlights the sweet, smooth and nutty flavours of the product, and is designed to encourage trial and connect with a younger audience through a tongue-in-cheek script. The ad will also feature online and there will be a comprehensive in-store sampling campaign. Among the brand’s new products is the Raffaello Mini
With shoppers on the look-out for something special at Christmas, Ferrero will be promoting its boxed Thorntons and Ferrero Rocher selections.
Tree at 40g with an RRP of £2.09. Ferrero Rocher novelties include the Mini Tree and the new Shooting Star. Its kids’ confectionery brand Kinder is launching Kinder Choco-Bons with festive packaging that includes a gift tag and the Chocolate Minis Hangable Star. And Kinder Joy is being
put in special Christmas packaging. Having recently acquired the Thorntons brand, Ferrero has given its 200g and 60g reindeer, Santa and snowman chocolate figures range a makeover for this Christmas with new poses and new packaging. The Thorntons advent calendar range has been
expanded to include Santa, Gruffalo and Continental varieties. A spokesperson said: “Shoppers are always on the look-out for something special to give at Christmas, leading to a 2.7% rise in the growth of premium advent calendars. “For grown-ups, the new Continental Advent Calendar will offer the new Continental range behind each door.” Customer development director Levi Boorer said: “Retailers are stocking up for the seasonal period as early as August. “From the organised shopper getting the gifts sorted in September, to those who put the finishing touches together on Christmas Eve, we are confident Ferrero is the perfect partner to help retailers make their sales golden. “We know consumers love our products and by investing in heavyweight media campaigns and new products, we believe we can help provide sparkling sales.”
Seasons to be cheerful? A spokesperson said: “In October start the countdown to Christmas with self-eats. “Continue the countdown theme in November with advent and novelty sharing lines. “In December stock selection boxes, Christmas-themed gifts, family sharing lines and top-up gifts. “Utilise manufacturers’ POS and build impactful displays in store to showcase your full seasonal range. Also remember 50 l
to utilise the impulsive counter space for self-eat treats. “Help shoppers manage their Christmas spending by giving them a choice of self- eat treats and stocking fillers with products under £1 RRP. “Christmas is also a huge gifting occasion for adults while sharing packs play a big role in households as families and friends come together during the festive season and add some seasonal excitement dur-
ing these occasions. Stock up on gifting products to increase top-up gift purchases in the lead up to Christmas and make sharing products available throughout as social occasions increase towards the big day. Over 1.3m people enjoyed Cadbury Heroes and Roses tubs in the UK in 2015 and Cadbury Milk Tray grew 13% in 2015.” The Smarties Little Choc Penguin is back on the Nestlé list this year.
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CELEBRATE THIS SEASON WITH
BRANDS WORTH OVER
£40M
£4.4 MILLION
LAST WINTER*
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BRAND SUPPORT**
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Visit: www.ferrero-trade.co.uk
26/09/2016 12:52
Christmas confectionery
Chris crossing the Atlantic Reese’s Stateside take on seasonal opportunities
Divine inspiration CONVENIENCE stores should merchandise Christmas impulse chocolate lines together, but away from regular allyear-round impulse lines, reckons Divine Chocolate. A spokesperson said: “They should be positioned in a highfootfall location in store that is either at the start or end of the shopper journey, as this is when shoppers are in treat mode to reward themselves for the shopping experience.” Divine has launched a number of new products including the Chocolate Tasting Set, with 12 small bars in six flavours including dark, milk and white chocolate,
and limited-edition Christmas flavours. Also new is Divine Milk & Dark Chocolate Caramel Belgian Hearts. The mini box contains four chocolate hearts filled with palm-oil-free caramel. In Divine’s advent calendar each window opens to reveal the Christmas story and a milk chocolate heart, as well as a Merry Christmas greeting in a different language to highlight the Fairtrade company’s international partners. Other festive novelties include the Giant Milk Chocolate Coin, limited-edition Christmas bars and chocolate lollies.
FAMOUS for its Peanut Butter Cups, Reese’s has launched a Christmas range that includes gift products and self-treat items. Brand director Shane Angus said: “Reese’s already offers consumers differentiation with a unique flavour profile of the combination of chocolate and peanut butter, and our UK Christmas seasonal range is available in packaging designs and novelty shapes for shoppers who are looking for interesting and new winter treats and gifts.” The range includes the Reese’s 34g Peanut Butter Christmas Tree, Reese’s Festive Filled Candy Canes and gift lines like the Reese’s Peanut Butter filled 141g Snowboarding Snowman. Angus continued: “Reese’s & Hershey’s are the number-one selling seasonal holi-
Top-selling American brand Reese’s has launched a range of Christmas novelties for the UK market this festive season including the Snowboarding Snowman and Christmas Tree.
day confectionery brands in America and launching the range in the UK allows us the opportunity to maximise sales of Reese’s outside of our core range, where we have seen double-digit value and volume growth year on year for the last five years.”
Angus said the festive range had undergone a total overhaul with brand new designs and added: “We will be using social media to bring Reese’s take on Christmas to life with our #SorryNotSorry media campaign across Facebook, Instagram and YouTube.”
Go premium to take on multiples PREMIUM boxed chocolate selections are preforming well and, with their help, it wouldn’t be unusual for a retailer to generate 40% of their annual confectionery sales over the Christmas period, suggests David Shaer, sales manager for House of Sarunds. He said: “Independents are going head to head with the supermarkets in confectionery sales during the 52 l
Christmas period so it is important to stock a range that will create a significant point of difference.” The House of Sarunds chocolate range includes Maison Pierre ribboned gift boxes with an RRP of £5.99, boxes of Cupido flaked truffles and boxes of Bianca flavoured cocoa dusted truffles both with an RRP of £2.49.
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22/09/2016 20/09/2016 10:52 16:29
Christmas confectionery
Ringing up sweet sales Festive makeover for gums mix
Shaping up for the big day RETAILERS should stock up on gift products in the leadup to Christmas and make sure sharing products are available throughout as social occasions are more frequent towards the big day says Mondelez International. And, stressing that it’s important to excite customers with new products, it has added Maynards Bassetts Wine Gums Merry Mix to its range. The festive shaped jellies are available in a 165g sharing bag at £1.32 and in a 570g snowman jar with an RRP of £5.99. Mondelez says its Jelly Babies special edition, Santa Babies Berry Mix is the number one candy novelty bag and quotes AC Nielsen research to give it a retail sales value of £1m. The 165g bag has an RRP of £1.32 and comes in cases of 12 packs. Other Maynards Bassetts packs include a Wine Gums Carton, a Liquorice Allsorts Carton, a Jelly Babies Carton and a Sports Mix Carton each with an RRP of £3.89. A spokesperson said retailers should use POS and build impactful displays to showcase their full seasonal range. 54 l
Box. Featuring a label that OF every £1 spent on seacan be personalised, the sonal treats, 70p is spent box comes in 300g on confectionery says and 600g sizes. Refreshers and Wham Starmix and brand owner TangeTangfastics have rine Confectionery. been put into Referring to a – the value of – the annual value cracker-shaped Mintel report, Tanry ne tio ec nf co it th 120g boxes. gerine says the total e fru Ch of ristmas And a limitseasonal treats martreats market at sales in the UK ed-edition Starket at Christmas last Christmas 2015 mixmas is being year was worth £827m launched with new which was up 16% in value flavours including eggsince 2010, but down 13% in nog egg, cherry trifle heart, volume. ily occasions and celebrations apple strudel bottle, apple Head of marketing Adrian during what is by far the largstrudel and custard rings and Hipkiss said: “This demonest of seasonal occasions. gingerbread bears. strates how the market has “The gifting items will be • Swizzels says its share of been affected by increased avavailable nationally in a range kids sugar confectionery sales erage prices, indulgence and of grocery, convenience stores rose from 11% to 13% over premiumisation.” and independent retailers.” the Christmas period in 2015. The company has created a • Festive favourites, top-sellAlongside its Sweet Shop Farange of packs especially for ers and new formats are on the vourites tin, it has added new this year’s festive season. Christmas list of Haribo. products for this year’s festive Its new 750g Sweet ChampiNew to its seasonal range is season. ons tub contains a selection of the Mega Stars Selection Gift Dip Dab, Refreshers, Sherbet Fountain, Wham, Mojo Chews, Black Jack Chews, Fruit Salad Chews, Frosties and Refresher Softies sweets for an RRP of £5. Another addition to the range is the Jameson’s luxury chocolate gift carton which includes Raspberry Ruffles and Caramels, aimed at capitalising on the success of the brand which Tangerine says has grown by 7% year on year. And, calling it the first in the sugar confectionery market, is has introduced a Sweet Champions Selection Box containing six full-sized retro sweets. Swizzels has created a tube version of its Sweet Treats tub. It contains some of Hipkiss said: “Our new prodthe company’s best-selling sweets including Love Hearts, Drumstick Lollies and ucts will resonate with famRefresher Bars.
£608m £827m
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Drumstick Squashies have been put into a carton and the Drumstick Gift Box has been created containing a selection of Drumstick Squashies, Drumstick Bon Bons, and Drumstick Lollies. • Valuing the fruit confectionery category at £608m, Wrigley says it is important as Christmas draws closer to think ahead and stock impulse confectionery, which will, it argues, encourage customers to make repeat purchases. Jon Eatly, Wrigley customer excellence director, stressed the importance of visibility and availability as well as the importance of having stock in place at all the right times through the selling season. His top tips and recommendations for Christmas confectionery ranging and merchandising include: “Visibility is key and popular
Manufacturers have put some of their most popular packs into gift boxes such as the Sweet Champions pack from Tangerine Confectionery.
Christmas confectionery items should be located at eye level to take advantage of incremental sales. Your seasonal display should be in place by the end of September. “Availability is crucial. Re-
member to re-stock each morning and prior to peak traffic times as customers stock up for the festive season. A fully stocked display will help maximise your profit potential and guarantee repeat visits
from customers. “In order to ensure shoppers are aware of the choice and range on offer, it is important to keep a clear and tidy confectionery display – this will also make restocking easier and quicker. “Encourage additional purchases using Christmas ‘Big Night In’ promotions as families gather together, with offers including a DVD, Confectionery Pouch, for example, Skittles or Starburst, and a soft drink for a reduced cost. “And remember that retailers should stock lines to serve the various gifting and sharing occasions for confectionery over different parts of the festive period. “For example, single-serve treats are often popular before Christmas as shoppers treat themselves while out shopping for gifts, meanwhile sharing bags make great stocking fillers.”
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functional and energy drinks
Energy drinks have been a huge success for convenience retailers and a number of other types of functional drinks have made progress in recent years. But, at a time when soft drinks form a significant part of government health agendas and after a period when consumers’ disposable income has been under pressure, how is the market shaping up and how can retailers make the best of the growing number and types of functional and energy drinks?
Added energy in independents INNOVATION, flavours and producer responses to consumer health concerns are helping energy drinks perform ahead of the overall soft drinks market according to the category’s manufacturers. And they see convenience stores as a key channel for future sales growth. Red Bull’s category development manager Rich Fisher said: “As the number one sub-category in independents, symbols and forecourts, the sports and energy sector has continued to drive growth in the three years to 2015, thanks to an increased spend from functional energy drinkers. “This trend is set to continue with the category expected to grow 10%, to £1.37bn by 2019.” He added, quoting IRI research, that Red Bull is currently growing by 7.9% in value and 10.3% in volume but says that the sports and energy category remains flat making Red Bull the leading functional energy drink. The firm sees flavours as providing the key opportunity to bring new consumers into the category, that its Tropical edition was the best-selling new energy SKU to launch in 56 l
Energy drinks command a significant share of the soft drinks market and manufacturers are introducing new products and packs in a bid to maintain growth. Red Bull has put a price mark on its four-pack, Boost says 86% of its sales are for PMPs and AG Barr has extended its price-marked Rockstar Freeze range.
2015 and that its success had inspired the introduction of a another flavour. Fisher said: “Red Bull has extended its Editions range with a brand new Orange Edition following the successful introduction of Red Bull Tropical Edition.
over 40% of flavoured drinks sold.” Red Bull says it has three of the top five branded SKUs within diet or low-sugar energy drinks. Again referring to IRI research, it says Red Bull Sugar Free Original 250ml is num-
Orange is the number one soft drinks flavour and crucial within the sports and energy sector “Orange is the number one soft drinks flavour, and crucial within the sports and energy sector where it accounts for
ber one, Red Bull Sugar Free 250ml four-packs is in fourth place and Red Bull Zero in fifth.
• Boost says its sugar-free sales grew by 17% in the 12 months to January 2016 and, quoting IRI, says its 50ml sugar-free can is the fastest selling sugar-free energy drink. A spokesperson said: “Sugar-free sales are growing at a phenomenal rate following the move within a number of consumer groups to eat and drink less sugar. “Containing just five calories in the 250ml can, Boost invested considerable time and money developing Sugar Free Pink Lemonade, which is selling especially well.” And the brand says it has a
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functional and energy drinks
New look creates growth LANDMARK Wholesale has given its own-brand sports and energy drinks brand LSV Isotonic a new look. Senior trading controller Jon Burton said: “LSV Isotonic is one of Landmark’s best-selling products providing retailers with more than 40% POR while offering customers a fantastic quality alternative to the leading energy brands but at much lower price.” Selling for 50p for a 500ml sports cap bottle, LSV Isotonic comes in four flavours: orange, tropical, mixed berry, and tropical and berry. Burton said: “Feedback shows that consumers are loving the new packaging and since the relaunch, the Isotonic range is seeing 30% growth.”
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Boost is now running its biggest ever consumer campaign across the UK, in a bid designed to take the brand to millions of new consumers. Release the Boost tells consumers Boost provides energy and taste at a fraction of the price of competitors. The campaign includes radio advertising as well as digital banners, other online activity and competitions giving consumers the chance to win prizes such as £1,000 in cash or the opportunity to create a trip of a lifetime, with £5,000 of holiday vouchers to spend on experiences like swimming with dolphins or visiting one of the wonders of the world. A direct university sampling campaign will get Boost into the hands of over 350,000 students.
programme of marketing initiatives to thank the independent sector for 15 years of support. The spokesperson said: “Retailers can win £25,000 in cash and free product as part of the brand’s reward to its loyal independent customer base.” The anniversary campaign also gives retailers the chance to win prizes of 15 cases of product, £15 Boost vouchers and £15,000 in cash. And fifteen special anniversary crystal bottles, which can each be redeemed for £1,000 cash, will also be hidden among stock. Boost says that of the top 100 best-selling energy drinks, 67 are price-marked packs and that PMPs are growing faster than plain pack. The spokesperson said: “Price-marked packs can enable independents to compete effectively by offering a price point in line with retail multiples, demonstrate value for money and make a reasonable margin.
Earlier this year Red Bull extended its Editions range with new flavour, Red Bull Orange Edition. It followed the introduction of Red Bull Tropical Edition in 2015 and the launch of Red Bull Editions in 2013.
“Boost is the number-two stimulation energy brand in the UK and 86% of our sales are price-marked.” • The energy category is worth £1.3bn in Scotland, making it hugely important for retailers, said Adrian Troy, head of marketing for AG Barr. He added that although sugar is an important component of energy delivery for the majority of energy drink users, a
growing number of consumers are looking for a lower-calorie or sugar-free option. He said: “The low-calorie energy market is currently worth £8m and is estimated to grow significantly over the next five years. “Currently 49% of all carbonated soft drinks sold are low or no-calorie and there is a growing demand for these drinks in the energy sector. “The low-calorie energy market is currently worth £8m and growing at 13%.” Barr launched Rockstar Pure Zero to meet demand for a low-calorie flavoured energy drink. Among its new products Barr has introduced a Pineapple and Coconut flavour to its Rockstar Freeze range. Troy said: “Energy is a hugely important category with more than one in three soft drinks purchased being an energy drink. Big-can flavoured energy continues to drive the category and within this Rockstar flavours are the star performers, growing by 27% in the last two years.”
l October 2016
make up fd p56 58 60 Energy drinks D (P).indd 2
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22/09/2016 11:02
functional and energy drinks
Repackaged for convenience CONVENIENCE stores were firmly in the thinking of the team behind Overhang when they repackaged the drink they call a natural pick-me-up. The smaller 250ml bottle has already been taken on by Spar and other chains. Director of Overhang Drinks William Wilkinson said: “We are excited to be launching our 250ml variant which we feel will open doors to a new cross-section of consumers. “We have had some great uptake from convenience stores since Overhang was launched last year and this
move sets in stone our commitment to the sector. “The lower price which comes with the smaller bottle should be attractive.” • South-East Asian drinks brand Carabao is bringing its energy drink to the UK. Carabao will initially be available in Original and Sugar Free variants, with an RRP of £1.19 per can. The product takes its name from the carabao, the Asian water buffalo said by the firm to be renowned for its physical power, stamina and unbreakable spirit. The can carries the wording “Bring It On”.
Market looks for lighter options CONSUMERS are demanding a wide range of choice across the soft drinks category including in sports, energy and functional drinks says CocaCola European Partners. And it sees energy drinks in particular as having evolved in recent years. Trade communications manager Amy Burgess said: “There has been a huge amount of innovation to make products taste less like energy drinks and more like standard flavoured carbonates. “We’ve responded with the introduction of a wide choice of flavours, including Relentless variants such as Cherry, Lemon Iced and Apple & Kiwi, as well as brand new Passion Punch flavour. “Meanwhile Monster Energy offers a range of sub-brands that have distinctive flavours including Monster Energy Rehab, a still drink made with lemonade and iced tea, and Monster Energy Ripper and Monster Energy Khaos.” Burgess went on to say that 60 l
Saying that energy drinks have evolved in recent years Coca-Cola European Partners has introduced a number of new flavours for its Monster and Relentless ranges. It says Monster is continuing to perform well with sales rising by 10.8% in 12 months and Relentless has had significant investment in 2016, including a new pack design.
the modern soft drink consumer is becoming increasingly health-conscious, and the sports, energy and functional drink sectors are each adapting to demand for lighter options. She said: “The increased focus on lower-calorie drinks has seen us introduce a range of new energy drink variants. “They include the new Monster Energy Ultra range joining Monster Energy Absolute-
ly Zero and Relentless Zero in our sugar-free energy portfolio.” CCEP advises that to make the most of energy and functional drinks sales retailers should position their range prominently at the centre of the chiller, keep drinks cold, stay up-to-date with innovation and stock price-marked packs. Burgess said: “Energy is one of the best performing sectors
in the soft drinks category, with independent consumption sales having grown by 5.3% over the past year. “Its growth is being driven by a focus on innovation. “By stocking multiple variants of reduced sugar options, retailers are able to extend their sports, energy and functional drinks offering to suit any customer preference, which can lead to increased sales.”
l October 2016
make up fd p56 58 60 Energy drinks D (P).indd 3
27/09/2016 09:48
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27/09/2016 15:35
young adult brand update
Water showing bottle YOUNG adults have three main reasons to purchase soft drinks according to AG Barr: refreshment, served by colas, lemonades and flavoured carbonates; demand for functional products such as energy drinks; and hydration when, says Barr, young adults look for juice drinks and water. Head of marketing Adrian Troy said: “Within the third category, AG Barr has Rubicon, the UK’s number one exotic juice brand and Strathmore, which is growing at 29%.” • Coca-Cola European Partners says healthconscious students go for bottled water and choice and brands are important to young adults. Communications manager Amy Burgess said: “Retailers should ensure chillers are stocked with a wide choice of water.” Earlier this year the firm launched a new sportscap pack of Glacéau smartwater, designed to appeal to busy or sporty students.
For Malibu it’s always summer. Current activity includes attempts to encourage young men to embrace their inner Malibro, wear loud shirts and go for Malibu. WKD, the leader of the RTD pack, has an entirely new look in what amounts to a major relaunch to a new generation of young adults.
New look for new drinkers
Market leader rings the changes and seeks another million RTD fans CELEBRATING its 20th birthday, WKD has taken on a new look to welcome a new generation of young drinkers. The top-selling RTD brand has been given a new pack design and has launched its WKD for the Now campaign on social media networks and other platforms. The reinvented range has four flavours: the original Blue and Iron Brew and well as new Berry, and Passion Fruit. Jo Sykes from the transformation project team said: “No
fundamental changes have been made to the liquid in terms of flavour or ABV which remains at 4%, and there are no changes to the RRP.” Brand owner SHS Drinks estimates that attracting a million new drinkers among 1824 year olds over the next three years could generate an incremental £65m in RTD sales, with the take home sector benefiting by £38m. • Malibu is targeting male drinkers with its latest marketing campaign, Malibros.
The YouTube video at the centre of the campaign features Jamie Lang and Andy Jordan from TV show Made in Chelsea declaring themselves Malibu loving men, or Malibros. Marketing manager Jo Alexander said: “We think this light-hearted, humorous approach is the best way to show men that Malibu can easily be one of their drinks of choice. “Malibu already has a huge awareness at 93%.”
Quick and easy keeps students happy QUICK cook times and competitive pricing are important to 18-25 year old shoppers and Kepak says that is making its Rustlers brand the UK’s number one microwave snack. Convenience foods channel director Angela Daulby said: “Our insights tell us 18-25 62 l
year olds are loyal to Rustlers because of our flame-grilling process.” Daulby added that according to Kantar Worldpanel 35% of micro-snackers are students and young adults and she said convenience stores are likely to be used by 60% of students every week.
Kepak says its flame grill process has made Rustlers a student favourite.
l October 2016
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beer update
Canny moves Growth of gluten free TENNENT Caledonian has launched Gluten Free T, a 5% abv premium glutenfree lager in selected Tesco stores. Keith Lugton, Tennent Caledonian master brewer, said: “Gluten Free T has been a great success in Italy. We’ve had excellent feedback from customers who have chosen to stock our Gluten Free T lager so far, and look forward to seeing how the brand grows in the coming months.” ● Edinburgh’s Bellfield Brewery – the UK’s first dedicated gluten-free microbrewery – has secured distribution with a number of UK-wide operators. The brewery’s two beers, Lawless Village IPA and Bohemian Pilsner, have been taken on by Scottishbased distributors and wholesalers, including Craft Beer Clan Scotland, Gordon & MacPhail and Inverarity Morton.
FOLLOWING what it says is its most successful year to date, craft brewer Harviestoun, is to begin marketing two of its top beer brands in cans. Lager Schiehallion (4.8% ABV) and golden ale Bitter and Twisted (4.2% ABV) are the first of the core range to use the new pack, retailing in four 330ml can packs with an RRP of £6. The range has secured Scottish listings in 80 Tesco stores and 95 Sainsbury’s stores and is expected to rollout UK-wide in the coming months. Managing director of Harviestoun Brewery Toby Knowles said the move had been prompted by a desire to move into new markets and reflected changing perceptions among consumers. “It’s definitely a growing phenomenon that people are now looking for craft beer in cans,” he said. “Part of that is down to its convenience. If you’re in your local shop and you want to grab four beers do you want to wrestle four 500ml bottles back to the car or do you want to take a four-pack of cans? “On top of that, after years of very cheap beer being traded hard in can, I think people are now recognising that canned beer can be of equal quality to bottled and contain high-quality craft beer as opposed to
Toby Knowles, MD of Harviestoun Brewery, above, says cans are beginning to be recognised as a quality offering in the off-trade. Below, Drygate aims to distinguish its latest canned range by featuring artwork by John Felix.
cheap mass-market beer. “In the on-trade, especially in the casual dining sector, cans are now a very acceptable form of serve whereas in the off-trade I think cans are just beginning to be recognised as a quality option.” • Glasgow-based brewery Drygate has launched four new cans designed by their former van driver.
The studio range – Chimera India Pale Lager, Crossing the Rubicon India Pale Ale, Orinoco Breakfast Stout and Disco Forklift Truck – features psychedelic character-based artwork by former Drygate van driver turned freelance artist, John Felix, and is being launched to independent retailers with an RRP of £2.25 per can.
Project produces rye pale ale THE Brewers Project range from Guinness is expanding with the launch of Guinness Rye Pale Ale, the latest beer from St. James’s Gate, Dublin. Nick Curtis-Davis, the head of Guinness innovation for Europe, said: “With premium bottled ale booming, we’re looking forward
64 l
to introducing a delicious new beer into the sector. We see this as a great opportunity to further open up the category to new consumers, whilst also providing the opportunity for retailers to tap into the 257 years of brewing heritage of the Guinness brand.”
The addition is the fifth new beer release from The Brewers Project, which has also led to Guinness Dublin Porter and Guinness West Indies Porter. Guinness Rye Pale Ale is available across the UK in 500ml bottles with an RRP of £1.99 and is sold in cases of eight.
l October 2016
make up fd p64 - 66 Beer update E.indd 1
26/09/2016 10:26
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22/09/2016 11:05
beer update
New York brewer signs UK deal CARLSBERG UK has announced it is to handle the exclusive distribution of the Brooklyn Brewery beer portfolio in the UK, following agreement to transfer distribution rights from James Clay from December 30. Brooklyn Brewery is an
independent brewer whose beers include Brooklyn Lager, Brooklyn Scorcher IPA, Brooklyn Summer Ale and Brooklyn East IPA, each imported from New York. Liam Newton, vice president of marketing for Carlsberg UK, said: “Brooklyn Brewery is at
the forefront of the craft beer revolution, brewing quality beers that drinkers seek out and enjoy. The Brooklyn beer range will complement our existing portfolio of premium, craft and speciality beers and ciders and we will ensure it thrives well into the future.”
Mark of quality Latin look GLOBAL Brands is launching a new look for Amigos Tequila Beer. Paying tribute to the brand’s Mexican character, the wording on the logo is changing from ‘tequila flavoured beer’ to the Spanish translation ‘con sabor a tequila’. In addition, all packaging and branding items are undergoing an overhaul. Christian Sarginson, senior brand manager, said: “The new visual identity is a chance for Amigos to really connect with its audience. The change is designed to articulate the vibrant zing of limes and the Mexican taste of Tequila which make Amigos so delicious.” Amigos is currently planning for Dia de los Muertos, a national Mexican holiday which falls around Halloween. Activity will include a limited edition 4-pack in the offtrade and competitions across social media platforms. 66 l
THE beer category as a whole is currently in decline in Scotland, but where there is growth it is being driven by premium segments, according to recent data from IRI. “Beer is driven by craft ales as people trade up,” said Martin Wood, head of strategic insight, retail for the market analyst. “This is an opportunity for independents to stock more.” For mainstream beer brands, it appears to be an opportunity to highlight the quality and heritage of their products. “Consumers are seeking a richer value or experience from what they consume,” said Paul Isherwood, head of off-trade category development at Diageo GB, which recently expanded its Brewers Project range of craft ales with the launch of Guinness Rye Pale Ale. “They are interested in the stories, ingredients and provenance of products and this is a trend we are seeing across food and drink as a whole, and it is influencing purchase decisions.” It is a trend that AB InBev expects to continue, with quality playing an increasingly important role for consumers despite the higher price point. “Consumers are willing to pay more for better quality, premium offerings and using their beer choice as a form
Quality is key for modern shoppers in the beer category, which is driven by interest in craft ales, according to many firms.
of social currency,” said Jessica Markowski, head of trade marketing. “Stella Artois is the number one premium lager brand in the country and we are proud of our premium global brands including Budweiser and Corona that are also performing strongly.” The firm recently unveiled a new bottle design for Stella Artois and secondary packaging drawing on the brand’s heritage, which can be traced back as early as 1366 to the small town of Leuven in Belgium. “The bottle itself has been sculpted to provide a more elegant and streamlined profile, with elevated shoulders to en-
sure the richly embossed Stella Artois bottle sits above the competition on shelf, while the neck label and gold trim play homage to the brand’s iconic Stella Artois Chalice,” said Markowski. • Belhaven has won three awards for the quality of its bottled beers at the independently-judged Monde Selection 2016. Three Belhaven beers were entered in the category of ‘beers, waters and soft drinks’, with strong results that included two gold awards and one silver award. Belhaven Black and Belhaven Wee Heavy each picked up a gold award and Belhaven 80 Shillings scooped a silver award.
l October 2016
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OFFICIAL PARTNER OF SCOTTISH RUGBY Enjoy Responsibly
HalewoodCrabbies - SG - linda.indd 1
30/08/2016 17:33
RYO
Plain truths Zig-Zag Silver, part of NPD from Republic Technologies UK.
Accessories buoyant DESPITE recent changes to tobacco retailing regulations, Scotland’s £25.2m RYO accessories market remains buoyant, with filter tips among the best-performing products, says accessories suppliers Republic Technologies UK. The firm says its Swan filters brand is growing sales by 4% year on year, has a value share of 95% and a volume share of 93.% of its category. And it argues its Zig-Zag brand is also a key player and a major force in new product development with the likes of its Zig-Zag Unbleached paper range and Zig-Zag Silver Papers & Tips. Republic says there’s also an active demand for matches and lighters, with the segment worth £89m in total value sales. Republic Technologies supplies lighters and matches under its Cricket, Poppell, Scottish Bluebell, Vulcan, Cooks and Bryant & May brands.
WE are now just over six months away from the point when all tobacco sold through legitimate traders in Scotland will have to comply with EUTPD2 and UK plain pack rules. RYO will see some of the biggest changes, not just a move to minimally branded standardised packaging but also a hike to a minimum permissible size of 30g. The big players in RYO recognise the significance of the changes. However, for the time being they say make the most of the brands and packs that have made RYO the most successful part of the tobacco market but prepare and work with reps to ensure the transition goes smoothly. At JTI, owner of the marketleading brand Amber Leaf as well as Sterling Rolling Tobacco and others, head of communications Jeremy Blackburn said: “With the introduction of TPD2 and plain packaging we are of course entering a new phase – and it is difficult to predict the actual date when TPD2 stock will appear on shelves for specific brands.” But the JTI recommendations are clear. Retailers should ensure they maintain a good selection of brands across all price segments to cater for the needs of their existing adult smoker
Amber Leaf – built by JTI into RYO’s biggest brand and available in a variety of styles and packs ahead of the changes which will standardise packs after 20 May next year. And Player’s Red Volume Tobacco, launched last year and said to offer significant value thanks to volume-boosting technology and a new blend.
customers and remain a destination of choice, the firm says. It has now moved into the Be Prepared phase of its Your Guide Through Change programme and says retailers should use its JTI Advance retailer website and app to ensure they understand the changes and implement them in the best way. It’s also launching a consumer information website and providing leaflets and posters to help retailers inform customers about the changes. It strongly recommends that retailers consider pricing very carefully as PMPs disappear from the market and suggests that retailers should price at or below RRP. At Imperial Tobacco Andrew Miller, head of field sales, said the firm was urging retailers to continue to sell lower weight packs of RYO while stocks
last before the deadline of 20 May 2017. “In a fully plain pack environment, there will naturally be some initial confusion in the market,” he said. “Through our Partnering for Success platform we are continuing both to prepare and support retailers and adult smokers alike as the market gradually transitions to larger pack sizes.” On pricing Imperial’s head of sales and marketing Sophie Hogg said losing PMPs would mean retailers would have to reassure customers that they are not being overcharged. “Communicating that you sell tobacco products at the recommended retail price or below is likely to not only maintain shopper confidence and loyalty, but also protect in-store footfall and basket spend,” she said.
Lighters brand adds papers and tips CLIPPER, the refillable lighters brand, has launched a new range of RYO papers and filter tips, which it claims is set to revolutionise the market. The new range features five different types of papers, created, it says, to satisfy all types of smoker. 68 l
make up fd p68 RYO B.indd 1
“We have commissioned five artists to produce limitededition designs and prints, created for a distinctive and contemporary packaging strategy in line with the views and philosophies of our target audience,” a company spokesperson said.
“Rolling tobacco is particularly popular with young smokers mainly due to the price of packaged cigarettes. We have targeted 18-25 year olds, who already perceive Clipper as a lifestyle brand; fun, trendy, modern, and original.”
The range includes: Green cut corner (regular burn); Red (regular burn); Blue (thin); Silver (ultra thin); Silver King Size (ultra thin); Pure Brown King Size (unbleached); and Pure Brown (unbleached). The papers are partnered by a new range of filter tips.
l October 2016
26/09/2016 11:07
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Imperial - SG - linda.indd 1
22/09/2016 10:57
technology
PSConnect will link card machines to EPOS.
Missing link REPOSS has launched a new product which aims to completely change the way retailers take payments. PSConnect is designed to create a seamless link between a convenience store’s Reposs EPOS system and card machine, making it quicker and easier to take card payments. While the average sale can take over a minute to process, Reposs says its integrated solution reduces that to 20 seconds. Reconciliation is fully automated and there’s no need to crosscheck figures against endof-day reports when doing a final settlement. Reposs says automatic settlement allows retailers to keep track of every transaction, removing opportunity for theft, and integration guarantees payments are always accurate. PSConnect was developed following Reposs’s partnership with Payment Sense as its preferred EPOS integrated chip and pin provider. Reposs managing director Paul Lansdale said: “Being able to accept all types of payment is vital for the modern convenience store and newsagent to retain customers and maximise customer spends. “Partnering with Payment Sense gives Reposs users a competitive deal for card payments and seamless integration with their Reposs system, this will save time and provide a better service to their customers.” Customers who choose PSConnect will get free card machine installation, free EPOS integration, a choice of static or portable terminals, UK-based customer support, next-day terminal replacement and competitive transaction rates, the company says.
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The power to react With the right EPOS system, retailers can react quickly to information from customers and give an improved level of service. But not all systems are created equal. SCOTLAND’S convenience market is likely to remain highly competitive for the foreseeable future. Any long-term investments that retailers are considering, especially technology, need to provide a return on investment and be adaptable to ever-changing consumer requirements. No longer devices to simply accept payment, today’s EPOS technology has a key role to play in the grocery and convenience sector as a way to maximise profit, increase margin and reduce stock holding, according to Steve Powell, sales director at retail solutions firm PCMS. “EPOS is far from just a till point, it has become a point of service that provides the opportunity to interact with consumers directly and is the perfect place to deliver information that will help serve the customer better,” he said. “An EPOS system enables stores to encourage a greater level of loyalty to the brand as the store can react pro-actively to customer data. By analysing additional item sales, more frequent visits, recommendations and referrals, the retailer can create an experience that is both relevant and personal. Grocery and convenience stores are striving to maximise efficiency at the till and yet be flexible enough to provide customers with a personalised service alongside the option for self-service – all at the same time. “To be able to react to customer data, staff must be able to access information in real time at the point of service. The information needs to be accessible by a traditional till, a tablet or even a consumer’s own device and be capable of hooking into the retailer’s IT infrastructure.” PCMS’ systems feature the ability to integrate data from external systems, such as eCommerce, Loyalty/CRM, digital receipts and digital vouchers, in order to
Steve Powell, sales director at PCMS.
provide data at the point of service. “As online and physical sales become closer aligned, the ability to connect and provide data from multiple systems and deliver it to the relevant point of service becomes an essential requirement for all retailers. To deliver a seamless customer experience, stores must have the ability to access information from across the entire supply chain,” said Powell. “As competition for market share intensifies, avoiding price wars and ensuring robust levels of customer service must be part of a strong brand offering. This approach includes offering relevant discounts, ordering out-of-stock items from the store, or looking up a transaction and processing a return without a receipt. “As the grocery sector competes increasingly on price, maximising profits and improving efficiency will be crucial to a store’s survival. Good old-fashioned customer service and brand values, aligned with technology that enables efficient and effective commerce at every point of service, is an essential combination for the future of retailing.”
l October 2016
make up fd p70 - 76 UPDATE d Technology E (P).indd 1
27/09/2016 10:44
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22/09/2016 10:56 07/09/2016 13:48:35
technology
Linking up for an ideal combination Paul Cornwell, refrigeration solutions specialist at Daikin UK considers energy integration IN Scotland there are more than 5,500 convenience stores providing chilled and frozen food along with confectionry and other items. One of the most expensive aspects of running a store is the cost of refrigeration, which accounts for almost half of a retailer’s energy bill. This is often of most importance to small supermarkets, and convenience stores in particular, who offer a large range of products in a relatively small physical space that require varying temperature requirements. For example, sandwiches need to be stored at 4˚C, while drinks are usually kept around 6˚C, alongside frozen items that should be kept at approximately -18˚C. Due to typical refrigeration systems preserving a chilled cabinet’s temperature by switching the compressor on and off, maintaining cabinets with varying temperatures can be costly and can lead to food stock freezing and spoiling, adding additional expenses to day-today running. Maintaining a constant chilled cabinet temperature is therefore advisable, as it removes any potential fluctuation, reduces the risk of food products spoiling, and consumes less electricity. In addition, providing the ideal shopping environment for customers is paramount, with in-store temperatures known to impact consumer behaviour. It is therefore unsurprising that most stores have both heating and air conditioning systems to account 72 l
The Daikin Conveni-Pack uses heat recovery technology to collect heat ejected from refrigeration display cases and cold stores and redirect it back into the building, removing the requirement for separate refrigeration, heating and air conditioning systems.
for seasonal change to ensure an ambient shopping environment. Utilising an innovative inverter operated system, com-
offers the added benefit of ‘free heat’ recovery, enabling retailers to save up to 50% of running costs when compared with separate systems.
One of the most expensive aspects of running a store is the cost of refrigeration, which accounts for almost half of a retailer’s energy bill. bining heating, air conditioning and refrigeration into one unique solution, can provide significant cost and energy savings throughout a store. One such system is the Daikin Conveni-Pack, which alongside the efficient inverter also
By encompassing heat recovery technology, the heat rejected from the refrigeration display cases and cold stores – normally expelled into the atmosphere – is redirected back into the building to provide genuinely free heat.
Ideal for convenience stores and small supermarkets, the Daikin Conveni-Pack has a compact footprint and low operating noise (35 dBA at 10m in low noise mode) ensuring use in urban and built up areas. In addition, the small footprint makes the system suitable for installation in restricted areas such as internal plantrooms, on the building roof or at the rear of premises. Combining the systems therefore presents several unique benefits to store owners, including reduced energy consumption, free in-store heat as well as a unit suitable for urban areas. In fact, the Carbon Trust sug-
l October 2016
make up fd p70 - 76 UPDATE d Technology E (P).indd 2
27/09/2016 10:44
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Reposs - SG - linda.indd 1
22/09/2016 10:52
technology
Smart app adds touch of loyalty It’s all in the cards FOR the first time, British shoppers are more likely to make a payment using a contactless card than a cheque book, according to research from Mintel. New figures show that cheques have been used by less than one third (31%) of consumers in the past three months, down from 40% who used them to make a payment in 2015. Cheques are now the least likely method of choice, behind contactless debit cards (39%) and contactless credit cards (34%). Mintel research also revealed that mobile payments have been made by one third (34%) of smartphone owners in the 12 months to April 2016. However, the research indicates that over half (54%) of UK shoppers are not comfortable with the potential for a completely cashless society and 97% used cash over the same period.
ZAPPER, the consumer marketing and insight platform, has launched its new in-app loyalty card, that gives consumers the opportunity to automatically earn rewards. People who use Zapper – installed in a growing number of restaurants and retail outlets – can already pay bills, automatically redeem vouchers and leave instant feedback. However, many still have wallets containing many loyalty cards and paper vouchers. In an increasingly competitive market space, Zapper says it’s critical for businesses to go the extra mile to reward and retain their customers. According to the Mintel Consumer Attitudes towards Mobile Payments UK 2016 report, more than two in five (46%) consumers would be more likely to pay for things using their smartphone if they were offered rewards. What’s more, findings from the 2016 Bond Loyalty Report with Visa show 57% of their members would like to engage with loyalty programs via mobile phones, and a 3C report revealed 60% of consumers make more monthly visits/pur-
Businesses such as Brazilian restaurant chain Rodizio Rico are already using the new app to engage with customers.
chases because of mobile-enabled loyalty programmes. Customers are increasingly tech-savvy and targeted offers and personalisation are ways to encourage repeat visits, create habit and reward loyal customers, Zapper argues. It says its new upgrade gives businesses a smart way to automatically understand their customers, reward loyalty and encourage future spending through rewards, messaging, push notifications and beacon technology. Gerry Hooper, CEO Zap-
per UK, said: “We’ve seen an incredible uptake in the first week of introducing the digital loyalty card with 10% of our restaurant partners launching their own loyalty rewards scheme within the Zapper app. This is such a simple and seamless process for both the user and the venue with more than 8% of our UK users already opted in to a loyalty card. We are really excited about this feature as a simple way to encourage repeat visits and habitual use of mobile payments.”
An ideal combination? gest that a 20% decrease in energy costs can have the same impact on a store’s bottom line as a 5% increase in sales. With the potential to lower energy consumption by up to 50%, the Daikin Conveni-Pack could produce more than a 10% increase on a store’s bottom line. 74 l
Demands on convenience stores are continually increasing, with consumers requiring a wider range of products and a comfortable in-store environment all year around. Moreover, as running costs continue to rise, increasing profit margin by reducing dayto-day running costs is vital.
The integration of high energy consuming systems, such as air conditioning, heating and refrigeration into one unique efficient solution, with the capacity to provide free heat, is an ideal method of ensuring the best retail environment possible, whilst reducing total energy consumption.
Paul Cornwell, refrigeration solutions specialist at Daikin UK.
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+ +
The modular design of our L6000 workgroup range lets you take away trays to fit onto the shop floor, or add them to create a powerful printer that’s perfect for head office. You can manage your entire fleet on one central network, and there’s no need to contend with lots of different toner and cartridge types.
brother.co.uk/retail-print
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technology
Birth of a brand James Butcher of S4RB considers the tools required for a c-store retailer to make their own private-brand products successful.
Shopping in rhythm A good shopping experience is about more than range, reckons Andy Hill, CEO at Virtual Jukebox. As c-store retailers seek to provide their customers with a comfortable environment in which they can stroll the aisles, he figures they should consider the importance of music. Quoting recent UK-based research from Vision Critical, he said: “90% of shoppers would select an outlet that was playing music over one that was not, and 60% said they would spend more time in a store if they heard music that they liked. “Virtual Jukebox provides an unprecedented choice of music to the retail industry. The cloud-based system enables users to manage playlists at genre, artist and track level giving outlets total control of the music that creates the atmosphere in-store. “Alongside background music, Virtual Jukebox’s interactive service enables shoppers to choose the music at an outlet – via their smartphones. Involving customers in the music selection process is a fantastic way to entertain, boost sales, increase dwell time and encourage repeat visits.“
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BRANDS are important business for Scottish c-stores. Years of sustained price-driven competition have seen retailers battling it out to offer best-selling national brands at the cheapest prices – a tactic that doesn’t always end well. But with discounters and chain stores challenging shoppers’ perceptions of ownbrand products, isn’t it time c-store retailers did the same? “Convenience is still a key driver for customers, but importantly, convenience store products must perform well,” said James Butcher, managing director of Solutions 4 Retail Brands (S4RB). “The Coop is currently demonstrating success in this by refocusing its store estate on a convenience, own-brand led shopping experience.” Developing private brands for convenience stores should not be a case of simply copying what other retailers do, he said. Instead, it is essential to differentiate products and give customers what they want. “To develop competitive new and existing private-brand products, the retailer needs to have a true picture of their product performance. For in-
James Butcher, managing director of retail brand specialist S4RB.
stance, gathering and combining feedback from call centres and social media can provide a very clear picture of product performance and customer preferences.” In response to this, S4RB developed its UBX Cloud Services. The platform provides ‘One View’ of product performance based on collating customer feedback from multiple sources including call centres and in-store and online comments. “Having one consolidated view of product performance is not just useful for supermarket and convenience store pri-
vate-brand teams, but also to store franchisees and wholesalers who can benefit from having visibility over feedback,” said Butcher. “S4RB’s UBX ‘One View’ software allows c-store managers to collate information on the products they stock. Data from call centres, returns and social media provide a starting point for the retailer and supplier. ‘One View’ highlights areas with potential to increase profit, drive sales and ensure the brand’s value proposition is being delivered. “Most c-stores are run with very small teams, and this means they rely heavily on their suppliers. Using S4RB’s ‘One Team’ solution, retailers can build effective communication with suppliers and work closely together. Suppliers can collaborate with store managers, speeding up processes to meet deadlines with increased accuracy. “With a small number of product lines, the value of sharing ‘One View’ of performance with suppliers becomes even more important, not least so the retail team is not facing the challenges alone.”
Greens of Markinch, David’s Kitchen and One Stop – examples of convenience store operations which, to different degrees, have aimed to establish their own branded products with a good reputation among consumers.
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Introducing PayPoint One
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Visit paypoint.com or talk to your local Territory Development Manager
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forecourts
The rebuilt Ardeer Services in Stevenston, above. By night, the first floor can be illuminated in different colours to suit different moods, seasons and occasions.
New dawn for Ardeer
Following a massive investment by owner Mahmood Saleem, Ardeer Services in Stevenston has quadrupled in size, adding a second floor, Subway, ice-cream counter and car park. The results, particularly the personal touches, have been the talk of the town. SPACE can be a problem for many convenience stores. It was certainly a problem for the Nisa Local at Ardeer Services in Stevenston – until recently it had a shop floor of just 750 sq ft, almost every inch of it piled high with stock.
Owner Mahmood Saleem had wanted to expand for a long time, but was constrained by the amount of land available at the site. Unable to persuade the local council to allow him to build out, he realised the only way was up.
A photograph taken in February shows the forecourt as it used to be, with only a small shop, where space was at a premium, and minimal parking. The Jet canopy itself was unchanged in the redevelopment. 78 l
Following a huge investment and years of planning, the old shop has now been bulldozed and replaced with a doublestorey state-of-the-art building incorporating a 2,700 ft Nisa store and Subway, with kitchen, offices and storage. The in-store range has tripled, with a massive expansion across chilled drinks, food and frozen. New products on offer include freshly-baked bread from Cuisine de France and Woody’s ice cream, on sale from a dedicated counter. The location, on the main road to and from the A78, is very convenient for people travelling between the Three Towns of Stevenson, Saltcoats and Kilwinning. With Morrisons, Asda and another independent nearby, there is a lot of competition, but Mahmood isn’t too concerned about that. Open 24 hours, seven days a week, with a huge variety of products and a promise to match Morrisons on fuel price, he is confident in the site’s ability to attract new customers. “The reason we wanted to spend so
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much money here is the potential in the location. So many people around here don’t have the time or the patience to go to Morrisons. It can take 25 minutes to get one item from Morrisons, but here it would only take five minutes. They can jump in and jump out.” For people who might want to spend more time in store, 18 car-parking spaces have been created, with a new canopy covering those at the front. At every step, efforts have been made to ensure customers feel more comfortable while they’re shopping. When it comes to customer service, from opening doors for people to helping them load groceries into their car boot, staff are encouraged to go the extra mile. “These are little touches, but they’re very important, especially for elderly customers,” said Mahmood. “They do more shopping here because they know we’ll help them. We want them to be well looked after. Supermarkets don’t do that.” But what really seems to have captured customers’ imaginations are the old photographs displayed on the main wall. “The locals are so impressed with what we’ve done,” said Mahmood. “We took old pictures of the town from the local library and people can spend hours in here looking at them, talking about the town. They’ve been calling their friends and family to come and see. “I just thought it would be quite a boring wall if we didn’t do something with it. And people have been thrilled. I’ve had a few customers grab me outside and thank me for doing something good for Stevenston. We’ve also added some colourful lighting that looks really good in the night time. You can change the colours. You could have cool colours in summer, warm in winter, pink for Valentine’s Day, different events, so many different options.” The grand opening of the new store was celebrated on Saturday, August 27, with a family fun day, including a ribbon-cutting ceremony carried out by long-time customer Tommy Lawson. “That was a very busy day,” said Mahmood. “Everybody coming in was so happy. We dropped the fuel price 5p to get everyone in. It was queued all the way to the roundabout. 5p makes a hell of a difference. People just go crazy. Jet did us a favour with £500 free fuel for customers, AG Barr gave us a bike for the raffle and there were a lot of smaller prizes.” In the weeks following the opening, sales have been going up all the time. “I’ve seen a lot of new customers,” Mahmood said. “We have a new type of
With 2,700 sq ft, there is now ample space to make use of gondolas, promo bins, stands and displays on the shop floor. Customers looking for fresh food have many options. As well as the Cuisine de France bake-off producing bread and pastries throughout the day, a Costa coffee station and a large range of chilled food to go, the store has a Subway counter operating from 7am to 10pm. Outside, a canopy extends over the car park, protecting customers from the elements. Bunkers full of promoted products are displayed along the walkway. October 2016 l
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JET
SG_DPS_0816_Layout 1 30/08/2016 17:36 Page 1
Forecourts of the future
JET’s network of 50 independent Scottish forecourts is going from strength to strength. Spanning from Newton Stewart in the south to Thurso in the north, and from Kyle of Lochalsh in the west to Duns in the east, JET now supplies more fuel to Scottish independent dealers than any of its main competitors.* Here are just a few of the reasons why Scottish dealers are making JET their fuel supplier of choice.
* Source – Catalist latest release. Dealer site volume only, excluding sites owned by UK nationwide site operators – Certas Energy, Cooperative, Euro Garages, MOTO, Motor Fuels Group, MRH, Roadchef, and Waitrose
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Security of supply Security of supply is a major concern for all independent dealers, but thanks to the backing of our parent company, Phillips 66, JET is Scotland’s only branded dealer supplier with its own UK refinery – offering security and flexibility. Last year alone, we supplied 1 billion litres of fuel to our independent dealers, other oil companies, hypermarkets, major resellers, and commercial and marine customers.
A forward-thinking food-to-go solution Food-to-go is a vital component of today’s modern forecourt. To help dealers capitalise on this trend and drive forecourt footfall, JET has teamed up with eXpresso PLUS to introduce ‘Snack on the Go’, an exclusive coffee and food-to-go concept. eXpresso PLUS’ partners include well-known consumer brands such as Lavazza, PG Tips, Nescafé and Country Choice.
As well as a Lavazza coffee machine, dealers can choose to add display areas for hot food, sweet treats and chilled items. The units are flexible, enabling dealers to adapt them to suit their location and customer demographic both now and in the future.
An award-winning standards and service programme At JET we aspire to have the best independent forecourts in the country. Our ‘Proud to be Jet’ standards and service programme rewards dealers who deliver high standards and offer excellent customer facilities. Forecourts are assessed, benchmarked and measured based on annual compliance audits and other brand-related criteria. JET dealers work towards obtaining ‘Diamonds’, which can be spent on a range of items to further improve their forecourts for the future, such as LED under-canopy lighting, a full car wash valet or annual electrical testing.
Big brand and alliances Our partnership nership with SPA SPAR P R UK gives JET PA dealers the opportunity to transform their sites into convenience destinations which maximise on both fuel and food sales. Our alliance with Amazon Lockers is also attracting customers onto JET forecourts as the popularity of parcel collection services continues to rise.
JET is 100% committed to the future of fuel retailing in Scotland and the continued expansion of our dealer network. Get in touch to find out why more and more independent Scottish dealers are making JET their fuel supplier of choice.
T 01926 404 333 E connect2jet@p66.com JourneywithJET @JETPetrol
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forecourts
Mahmood Saleem, above, has invested heavily to create a store that realises the potential of its location and will stand the test of time. The store offers a vast selection of chilled food and drink, with 7.5m of refrigeration, installed by Robertson Refrigeration, for soft drinks alone. At every stage of the development, efforts have been made to introduce new technology. With so much refrigeration, energy efficiency is particularly important. Below, the design of the building left Mahmood with an empty wall on which he saw an opportunity to promote brands like Cuisine de France and Costa Coffee, as well as pay tribute to the town of Stevenston. Photographs from the Ayrshire town’s history, sourced at the local library, have been a major talking point among local customers and have earned him a number of compliments.
customer coming in, nicer cars are parking outside, middle-class people who might have felt uncomfortable getting their food shopping from a forecourt in the past. Parents are bringing their children here as a treat, to get an ice cream or sandwich. “I wanted to be familyfriendly and to attract younger
too, the new Ardeer Services provides a better environment than it used to. “Before, when staff had a break, they had to have their lunch or dinner at the counter. There was nowhere for them to go. If I had reps coming for a meeting, I would worry about more than one person showing up, because there was no-
We have a new type of customer coming in, nicer cars are parking outside, middle-class people who might have felt uncomfortable getting their food shopping from a forecourt in the past. customers. That’s one of the reasons we wanted to make it look different to other shops. Young people like to have something different. If some teenager has a girlfriend, he won’t take her on a date to Morrisons, but he might bring her here for an ice cream. In the evening, with the right lighting, it can look quite romantic.” Staff numbers have doubled from 16 to 32 and for them 82 l
where for them to stand.” Now, staff can retreat to the rear kitchen on breaks, or head upstairs to their own break room with secured lockers. And Mahmood can hold meetings in his spacious first floor office with sea view. “I actually miss the old shop because it was so easy to work it. Now everything’s so spread out and I’m running all the time, up and down, trying to find things. But the staff are
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forecourts
Tankers put on the ribbon for charity FUEL brand Jet has joined forces with the charity Children with Cancer UK to support efforts to determine the causes, find cures and provide care for children with cancer. Jet’s support of the charity coincided with Childhood Cancer Awareness Month in September and involved wrapping one of its tankers in the charity’s distinctive crimson pink. It’s branding a further 50 tankers with large gold ribbons – the symbol for childhood cancer – and the charity’s logo and website.
Jet has branded 50 tankers with gold ribbons.
Childhood cancer is a cause close to the team at Jet’s hearts. Paul Yates, territory manager for Scotland, and his wife, went through every parent’s worst nightmare in 2012 when their daughter, Niamh, then aged 12, was diagnosed with an undifferentiated sarcoma on the base of her spine. Paul said: “Our lives were turned upside down when we were given Niamh’s diagnosis. She had a particularly rare form of cancer and had to undergo a seven hour emergency operation on her spine and endure six cycles of chemotherapy. We all travelled to the US for a seven-week course of proton beam radiotherapy, which was not available in the UK at the time. “Four years on, and Niamh is doing well, although the long-term side effects of all that treatment mean that her life is not that of a typical teenager. We’re proud to support this annual awareness campaign, because every pound raised brings us closer to another family avoiding what Niamh and our family endured.” 84 l
Mahmood is pictured, right, restocking the store’s cigarette gantry from his office on the first floor. All cigarette stock is secured upstairs, away from customers. Using their touch-screens at the counter, staff can request a pack and it is delivered to them through a chute. The vending system was designed and installed by Navarra Retail Systems. Navarra’s owner, Eamonn de Valera, said: “Mahmood had a specific vision about what he wanted to achieve which posed interesting technical challenges for us to overcome. I believe his ideas were good and the end product works well.”
very happy now. I think it’s a much better place to work than before.” The upstairs office doubles as a stockroom for tobacco, which is dispensed through an automated gantry refilled by Mahmood himself. “It’s like a vending machine, designed to go through the tills,” he said. “You click on the icon and the pack you want drops down. It’s all integrated into the EPOS, so when something’s out of stock, it won’t let you complete the sale. “Whenever I’ve got time I can restock it no problem. Each slot’s reserved and numbered for a different line. It’s also very
secure.” In so many ways, Ardeer Services is pushing the boundaries of what can be achieved in a forecourt service station and Mahmood is confident about its future. “I think this will become an iconic building in the area,” he said. “People will notice it and talk about it. Anyone who drives past will remember this. That’s been the thinking behind a lot of what we’ve done. The old pictures – that was done to get people talking about the site to others. You will never ever hear people talk about their local newsagent or grocer to anyone. But they will talk about this.”
Media screens facing customers at the counter are used to display the latest promotions. Tobacco is stored upstairs, while an illustration of a cigarette gantry is on the wall, with slogans warning against smoking.
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TAKE CONTROL OF YOUR TOBACCO GANTRY Mercury Automated Tobacco Dispensers Smart - Looks much better than Flaps Legal - Fully legal even with its doors open Secure - Valuable Stock in a secure metal case Control - All product dispensed automatically scanned Fast - Select a product and it’s in the tray Efficient - Gain extra valuable retail space Versatile - Models to suit all sites Cost Effective - No Slippage- Less Mistakes- save space Time saved on Service, Stocking and Control Contact Navarra Retail Systems on: 0121 384 2328 email: info@navarraretailsystems.com See the system at the SGF Conference 13th -14th October RBS Gogarburn
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forecourts
New sales manager makes his mark PHILLIPS 66, owner of the Jet fuel brand, has appointed Mark Todd to the role of national sales manager for its UK & Ireland Marketing division, taking over from Emma McKim. Mark brings a wealth of industry experience to Phillips 66, having worked in the downstream fuels industry for over 26 years. Mary Wolf, managing director of Phillips 66 UK & Ireland
Marketing, said: “Mark is ambitious and, coming from outside the business, is wellplaced to take on the challenge of increasing our market share and identifying new market opportunities.” • 90% of its Scottish sites took part in Jet’s ‘Treat Yourself’ Amazon promotion, which saw customers given the chance to win Amazon.co.uk gift cards every time they spent a
minimum of £10 on fuel. The firm said more than 45,000 vouchers were redeemed across the UK and £21,000 worth of prizes were given away. Margo Paterson, owner of Parkhouse Garage in Ardrossan, said: “Overall, the promotion was really well-received by our customers and because the prizes were realistic and it was quick and easy to enter, it worked very well.”
Mark Todd, Phillips 66.
What about water? Fairbanks wins new contract MOTO has signed a five-year contract with wetstock management specialist Fairbanks, spanning its 45 motorway service stations in the UK, following a four-month pilot programme. Margaret Erwin, head of forecourts for Moto said: “I was particularly impressed with Fairbanks’ attention to detail which ensured that the pilot ran smoothly and helped us make the decision to award the contract to Fairbanks.” Matthew Lloyd, regional manager, Fairbanks, said: “Moto place particular emphasis on health and safety compliance and we are confident that through our meticulous monitoring of their sites, we will help them to deliver this. ” 86 l
CAR washes, coffee machines, toilet facilities – they all require water and, depending on the business, could use an incredible amount in the course of a year. Scottish forecourt retailers have a choice of water suppliers. In a competitive market should they ask if they are getting the best deal? “It’s really interesting that many businesses don’t give as much consideration to their water usage as they do to electricity and gas,” said James Cardwell-Moore, commercial director for non-domestic water supplier Business Stream. “The cost and environmental savings, as well as the improvement to business performance, are there to be gained. Our business has changed a lot in recent years to help companies take the steps they need to take advantage of these benefits and the consultancy aspect to what we offer has grown significantly. “For example, forecourt traders using large amounts of water during car washing should be aware of the variety of services available to help them save money and make sure they comply with any environmental regulations. Not
Forecourt traders using large amounts of water should be aware of the variety of services available to help them save money, says Business Stream.
all suppliers provide the full range of services though, so it’s worth checking if yours can.” So what are the differences that separate one water supplier from another? “A good supplier should be able to build a relationship with you to really appreciate what your business issues and challenges are,” said Cardwell-Moore. “Make sure you speak to them to find out what they offer by way of free advice, consultancy services and products that will deliver the benefits that are undoubtedly available to the vast majority of companies. “Although our market is evolving, we also know that
unit cost remains important, so you should also check that you can access billing, payment and discount options that are right for your business.” Since the Scottish water market opened in 2008, Business Stream claims to have saved its customers £133m, including £54m in water efficiency savings, £72m in discounts and £7m in energy efficiency savings. “The relationship between us and our customers has changed to the point where we’re a partner in solving business problems and can support bottom-line growth, not just a pure utility provider,” said Cardwell-Moore.
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forecourts
Problems with provision Obtaining a licence for the sale of alcohol can be a difficult task for a petrol forecourt, so what are the key points to consider when applying? Andrew Hunter, a licensing lawyer and partner at Harper Macleod LLP, considers the issues. Is it possible to obtain an off-sale premises licence for a garage premises in Scotland? Yes, although premises which sell fuel are treated as “excluded premises” which cannot be licensed unless they satisfy exemption criteria set out in the Act. What are the exemption criteria? In order to satisfy the exemption criteria, the premises must be relied upon to a significant extent by local residents as their principal source of fuel or groceries. This is different to the “primary use” test you may have heard for English petrol stations. Why exclude petrol stations at all? The test arguably came about to prevent off sales from petrol forecourts (in line with a general “drink driving” policy message) but to preserve licences of forecourt shops which were part of more rural communities. The exemption provisions, however, were far more widely drafted and have allowed for the grant of licences in both rural and urban areas. What steps should I take before applying for an off-sale premises licence? There are certain steps that require to be undertaken by any operator looking to apply for a licence in Scotland for any type of premises and expert legal advice should always be sought on that. In addressing the exemption criteria, market research and customer interviews are recommended to understand their buying habits and use of the premises.
How does the statutory exemption criteria work in practice? The court has explained the exemption as follows: “Reliance to a significant extent as the principal source of fuel or groceries” means that there is a recognisable number of persons resident in the locality of the premises, who are not necessary constituted as a group or collective but more than a handful, who by virtue of their purchasing habits see and treat the premises in question as their principal source from which they ordinarily obtain either their groceries or fuel. These customers will properly regard themselves as materially disadvantaged or inconvenienced if the shop does not provide that fuel or grocery. Independent market research can put these propositions to customers and be used as evidence before the licensing authority. Does it matter that people rely on my premises for fuel more than they do for groceries? No. The legislation does not differentiate between reliance on the premises for fuel as opposed to groceries. Reliance for either is sufficient. If I can satisfy the exemptions, will I be granted a licence in Scotland? Satisfying the exemption criteria is only part of the application process. The licensing authority will still consider other relevant grounds for refusal, such as inconsistency with the licensing objectives or an overprovision of licensed premises in a particular locality.
Andrew Hunter, partner at Harper Macleod LLP acts for BP Oil UK Ltd, Certas Energy Ltd, Londis and Malthurst MRH in Scotland.
What else should I know if I am considering applying for an off-sale premises licence for my premises just now? Assuming your premises can be treated as an exception, you should consider the board’s policy on overprovision of licensed premises before embarking on the application process. Many licensing boards are now producing overprovision policies that restrict that the grant of new licences in specific areas and, in some cases, the whole licensing board area. You should carefully consider this policy before incurring the potentially expensive exercise of market research, preparing layout plans and paying licensing application fees.
MFG expands to break the 400 barrier MOTOR Fuel Group’s latest acquisitions have brought it to over 400 sites. Only four days after announcing the signing of an agreement to purchase the Bolton-based forecourt operator Synergie Holdings, it announced 88 l
another agreement to purchase Top Indies operator, Roadside Group Limited. Roadside Group operates 10 stations in the north-east of England, with its flagship forecourt being located at Newcastle Airport.
Jeremy Clarke, chief operating officer at MFG said: “Until now, we have only had a couple of stations in the north-east. The addition of this high-quality network will give us some real momentum in this region of the UK.
“This acquisition will bring our total number of stations to 405 and by breaking the 400 barrier, we are getting closer to our objective of becoming the UK’s most dynamic and profitable independent forecourt operator.”
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FR 16
0 TE R 2 DA E G MB IN VE OS O CL 4 N AY ID
Do you have what it takes to be our... FORECOURT RETAILER OF THE YEAR? JUDGES WILL BE LOOKING FOR: An excellent overall convenience retailing product range and service designed to suit the clientele of the forecourt – including motorists, local residents and others. A well laid-out retailing area, well-trained staff and excellent systems that make shopping in the forecourt shop quick and easy for fuel customers and those shopping for other goods. Good understanding of the local market including: the forecourt’s customers and potential customers; local competition; and business opportunities for the future. A good fuel operation and, where applicable, good presentation of other auto-related services such as car washes etc. An excellent hot beverages and food-to-go offer. In terms of the hot beverages offer judges will be particularly interested in: •
• • •
Excellent visibility and communication of the hot beverages service offered at the forecourt, including external signs or banners to attract passing trade. Good positioning of the hot beverages unit in the store to encourage impulse purchase and possible incremental purchases of other goods – such as food to go, confectionery etc. Good use of internal signs and point-of-sale materials. Good hot beverages promotional activities. Good staff training in hot beverage equipment, product knowledge and customer service. Excellent cleaning and maintenance of the hot beverages area. Good commercial performance in terms of hot beverages sales and profit.
Enter online at www.scottishgrocer.co.uk
supported by
For further information call 0141 567 6041
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forecourts
Make some noise Fuel supplier urges forecourt industry to recognise the “remarkable turnaround” due to retailers IT’S a very exciting time for petrol retailers as changing consumer behaviour means most now recognise the value of buying local and are happy to consider the forecourt as their local shop. That’s the view of Ramsay MacDonald, retail director of fuel supplier Certas Energy, who said it’s the hard work and entrepreneurial spirit of petrol retailers and their staff that has made this a reality. “Faced with the onslaught from the supermarkets over countless years, petrol retailers have adapted, invested in their convenience offering, improved their marketing and upped their standards of service,” he said. MacDonald made the comments in a speech at an industry event last month. “It’s time that we made more noise about this remarkable turnaround. In the UK, forecourts employ around 117,000 people, there are now 8,700
There is reason to be greatly optimistic about the future for petrol retailing in Scotland, according to Ramsay MacDonald, retail director of Certas Energy, the company behind the Gulf brand.
forecourt convenience stores with retailers investing on average £16,000 a year to further develop their business. Impressive statistics and great results with increased non-fuel turnovers, improved shop margins and a whole new customer base to sell to,” he said. Based in Larbert, Certas Energy says it is the largest fuel supplier to independent dealers in Scotland, including a network of over 90 Gulf branded forecourts. Its Gulf brand is one of the most prominent in Scotland, with a network extending from the Borders to the Isles.
“You cannot rest on your laurels in this dynamic marketplace and investment in the brand is essential, at a local, national and global level, to extend our appeal to new audiences. We offer our dealers regular low-cost, highimpact forecourt promotions – to drive new business to site – and global sponsorships that maintain and strengthen the brand’s credentials,” said MacDonald. “We can be greatly optimistic about the future for petrol retailing in Scotland, although it remains an extremely challenging marketplace. Hav-
ing a network of 24 sites here provides us with a depth of understanding of the convenience sector and petrol retailing and an insight into the future trends that many of our competitors do not have. We share that knowledge with every Gulf dealer to ensure that they are fully equipped to stay ahead of the game. “A good example is alcohol sales,” he said. “We have had real success in getting 13 new licences in the last two years – we are more than happy to share our experiences with any prospective customers.”
Jet and Spar head up forecourt event THE next in the series of Retail’s Best Forecourt & Convenience Partners, a networking event founded by convenience store and forecourt site operator Moiz Vas, is bringing a select crowd together to explore new opportunities for fuel and ‘foodvenience’. To be held on the evening of 23 March, 2017, the event will provide a platform for symbol group Spar and motor fuel partner Phillips 66/Jet, to get together and share 90 l
their knowledge and ideas. Debbie Robinson, Spar UK managing director, said: “Now is a fantastic time for Spar to participate at Retail’s Best Convenience & Forecourt Partners, as the forecourt sector is absolutely key to our strategy for growth. “For retailers, a forecourt offering has so many benefits – and we are excited to share these with petrol dealers and retailers at the event in March.”
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FR 16
0 TE R 2 DA E G MB IN VE OS O CL 4 N AY ID
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27/09/2016 12:51
Christmas gifting
Christmas is a time of gift giving, of course. And many product categories have well-established patterns of seasonal product promotion designed for the festive period. It’s also a time when households can push the boat out and move up market on food and drink. Today we look at how brands and firms in some of the most important festive categories approach Christmas opportunities and what they have in store this year.
Trading up for a sharing season MAKE sure you don’t leave it too late to stock up on festive drinks, that’s the advice from Pernod Ricard. Channel director Impulse James Middleton said: “Four out of 10 retailers leave it as late as November and December to start stocking seasonal products, potentially missing out on an opportunity to inspire shoppers towards premium Christmas drinks and grab a share of early gifting sales.” He said premium spirits account for £1 out of every £3 spent in the category during the festive season compared with £1 out of every £4 during the rest of the year and that, he claimed, represents an opportunity for retailers who stock the right range. For this year Pernod Ricard has introduced a new gift box for The Glenlivet Founder’s
The Arran Malt gift pack contains three aged 5cl samples in a specially designed tin for £18.99. 92 l
Major spirits companies stress the importance of Christmas to premium spirits sales and the importance of stocking premium spirits for those looking for a strong commercial performance during the festive season. This year Pernod Ricard has a series of Christmas gift miniatures on its major brands including Absolut. Diageo has a new premium vodka in its Ciroc range, Ciroc Pink Grapefruit, and The Macallan has a gift tin that celebrates the influence of wood on fine whisky.
Reserve, a Jameson and Ginger Ale gift pack, accompanied by a branded glass and hanging tree miniature Absolut and Malibu gift packs. • Drinks giant Diageo says that in the off-trade the top 10 brands deliver 46% of spirits sales at Christmas and that 39% of premium spirits sales are in the 12 weeks before Christmas. A spokesperson said: “With the opportunity for premium spirits being so high, it’s important for retailers to ensure they have an extensive premium range visible within the store.
“With vodka contributing 66% super premium growth in total impulse, Ciroc and Smirnoff Gold are key products.” • Consumers want authentic products with rich heritage when choosing a tipple for Christmas according to Euan Mitchell, managing director of Isle of Arran Distillery. He said: “Gift packs are a great way for purchasers to introduce friends and family to a new distillery, age or blend. “Our Arran Single Malt gift packs contain 5cl samples of our 10, 12 and 14 year old single malts.”
• The Macallan has released a new premium gifting series, featuring whiskies from its portfolio. The new series features three distinct designs and will be released over the next three years. The programme begins with the first release, Oak Forests. The limited-edition Oak Forests gift packs include The Macallan Gold Limited Edition Carton, The Macallan Gold Limited Edition Tin, The Macallan Gold Limited Edition Glass Pack and The Macallan Amber Glass & Water Jug Pack.
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WHEN LIFE GIVES YOU BUBBLES...
Eat as many raspberries as you like, but always drink responsibly. Chambord Black Raspberry Liqueur ©2016. Chambord is a registered trademark. All rights reserved. Subject to Availability. In Selected Stores.
Chambord - SG - linda.indd 1
22/09/2016 11:06
Christmas gifting
Biscuit firms boxing clever Treats for furry friends
BOXED biscuits have long been marketed as festive gifts and giant brand McVitie’s has updated its festive boxes and tins for 2016. McVitie’s Snowglobe Tin has a 3D traditional Christmas snow globe scene on the front, complete with shakeable snow and contains Scottish all-butter shortbread. McVitie’s Victoria Collection is a selection of coated chocolate biscuits wrapped in foil and presented in a triangular box. The new McVitie’s Gold Bullion Tin offers individually wrapped Gold Bars in a souvenir novelty tin. • Burton’s Biscuit Company is launching a new look Cadbury Christmas Biscuits range for 2016 including a new Cadbury Fingers product. David Costello, head of category and shopper management at Burton’s said: “Cadbury Snowy Fingers performed extremely well in consumer research, with shoppers saying they felt it was a new and unique concept for Cadbury Fingers. “With this new launch, the Cadbury Fingers brand is perfectly placed to attract new shoppers to the fixture and
MARS Petcare has expanded its range of festive dog and cat treats for 2016. And it is to spend £7.5m on TV advertising to promote the range. Category director Stephanie Case said: “Retailers should stock up to make the most of shoppers’ appetite for treating their pets. “Stock up on care and treat products and create festive displays.” The Pedigree Stocking has a new pack for 2016 that includes a rope tug toy as well as a selection of dog treats. For cats the Whiskas Stocking includes a wobbly treat toy with salmon, chicken and cheese snacks. Each stocking has an RRP of £3.99. Dreamies Turkey, a best seller for cats last Christmas, is making a return in a 60g pack with an RRP of £1.51.
Biscuit companies are adding new packs and updating familiar ones for this Christmas. McVitie’s has put its Victoria Collection into a triangular box. Border has put its ginger biscuits in a carry case. Burton’s says its Cadbury tin is a market leader.
help retailers grow sales this Christmas.” Referring to Nielsen Scantrack figures, Costello added that the Cadbury biscuit tin has been the number one fully coated biscuit assortment for a number of years. He said: “Our advice to retailers is simple – stock a strong range of bestselling seasonal brands that your customers will be looking for.” • Border Biscuits has added a Ginger carry pack containing its best-selling dark chocolate and milk choco-
late ginger varieties in time for Christmas. Brand and innovation director Lesley Ann Gray said: “The Christmas portfolio is versatile, with pack sizes to suit all occasions, and the range offers an affordable, quality gift or treat for the festive season.”
Limited gifts to love or hate LOVE it or hate it brand Marmite has launched a limited-edition Christmas gift range. The Marmite Chocolate Jar is the brand’s recognisable jar made entirely of Marmite 94 l
flavoured chocolate and has an RRP of £5.00. The Love It! Or Hate It! Chocolate Truffle Box at £4.00 is a mix of Marmite and Chocolate truffles. The Marmite Biscuit Tin,
which includes buttery biscuits flavoured with Marmite, has a £6.00 RRP. The festive range follows the launch of another limitededition product, the Marmite Easter Egg, earlier this year.
l October 2016
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26/09/2016 15:03 12:39 22/09/2016