MATTHEW CLARK TOASTS ‘RECORD BREAKING’ TASTING EVENT
THE BUSINESS MAGAZINE FOR CASH & CARRY/DELIVERED WHOLESALERS
Behind the scenes at Today’s Group
‘The Great Rebate’ Bestway unveils new retailer promotion
Under the Spotlight
TERRY LARKIN general manager of JJ Food Service CATEGORY GUIDANCE
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This month don’t miss... 06
Bidvest 3663 to move to new head office and RDC.
Giving back: Bestway unveils new retailer promotion.
Sweetening your sales: your ultimate guide to confectionery.
ESSENTIALS 05 06 50
Editor’s Comment Industry News Products & Promotions
In Focus Bestway launches The Great Rebate promotional programme.
Behind the Scenes Today’s Group puts more focus on the on-trade.
Special Report Matthew Clark toasts latest success.
Spotlight featuring Terry Larkin, general manager of JJ Food Service.
The past, present, and future: Today’s Group reveals new on-trade division and targets a ‘revolutionary’ route to market for manufacturers. Product of the month
Driven to succeed: Terry Larkin talks fundraising, relief catering and his love of classic cars.
Major marketing drive and sponsorship agreement set to widen Irn-Bru’s national reach.
Legal Advice Review your data protection today.
Employment Law Cate Ritchie answers your questions.
CATEGORY INSIGHT 22 26 30 34 42
Big Night In Bottled Water Flavoured Milks Confectionery Hot Beverages
Call our customer services on 01925 220122 Source: Nielsen, Total Coverage Flavoured Carbonates MAT 6.12.14
[ EDITOR’S COMMENT ]
Elect and select y this time next month, it’ll all be over. The General Election winners will be cock-a-hoop, making promises they’ll be hard pressed to keep, and the losers will be licking their wounds, probably changing the composition of the Shadow Cabinet. Yet before ‘the day’ itself, we’ll have been beset with countless opinion polls, telling us how the voting is likely to go – changing on a daily basis. This sort of research can be likened to surveys carried out in the food trade, designed to find out who will buy what, which stores and cash & carries they’ll use and what action they will take if they don’t find what they want in their outlet of choice. While this sort of stuff makes interesting reading, old sceptics like me tend to scoff at the findings. Take two samples on two different days and the message could be totally different. Interviewees on the first occasion might prefer shopping at Booker rather than Bestway, buying Pepsi and Warburtons at the expense of Coca-Cola and Mothers Pride, and they won’t be as determined to shop around. Responses by the second group could differ greatly. So what does it prove? Little really, unless you are willing to take such research at face value. A new study by a manufacturer specialising in vegetarian food finds that
MATTHEW CLARK TOASTS ‘RECORD BREAKING’ TASTING EVENT
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Under the Spotlight
most members of the public would like to see more main meal vegetarian options when they go out to eat. These findings might encourage foodservice wholesalers to push harder for the likes of Harvester, Loch Fyne and Zizzi to offer more veggie meals. We don’t know whether the vegetarian survey was aimed exclusively at vegetarians and vegans, carnivores who like to experiment occasionally or a cross-section. But the sample is allimportant when answers are solicited. With this, and other surveys – food and politics included – the location, venue and weather must also be taken into account. Supposing an independent grocer is collared by a clip-boarded researcher in a C&C car park, and he is anxious to return to his corner shop before the heavens open, he is unlikely to give as much time and attention to the questions as if he was ‘caught’ on a day when his shop was closed and the sun was blazing. The prospective voter in the street might be swayed by similar conditions – perhaps by an impactful party political broadcast the night before. Meanwhile, you, our readers, will be hoping the new Government will look kindly at, among others, business rates, VAT and the minimum wage.
Mervyn Gilbert News Editor
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TERRY LARKIN general manager of JJ Food Service
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Address Winlove Publications Ltd PO Box 366 East Grinstead RH19 4ZE Tel (01342) 712100 Email firstname.lastname@example.org Publisher Winlove Publications Ltd EDITORIAL Managing Editor Kirsti Sharratt News Editor Mervyn Gilbert Deputy Editor Michael Catling ADVERTISING AND MARKETING Publishing Director Martin Lovell Media Sales Manager Clare Phillips 4,560 July 2013-June 2014 Audit Bureau of Circulations Printed by Bishops Printers ISSN 1352-254X All media rates and feature lists can be accessed online by visiting: cashandcarrymanagement.co.uk Depot images thanks to Bestway Brighton.
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[ INDUSTRY NEWS ]
Slough hq for Bidvest 3663 Wholesaler to move next year After 16 years in its original home in High Wycombe, Bucks, Bidvest 3663 is to move next spring to a new head office and regional distribution centre on the Slough Trading Estate – about 20 miles away. The company has signed a multi-million-pound 20year lease contract for the 117,400 sq ft site with developer SEGRO. Its current premises were occupied by Booker Foodservice until 1999, when 3663 was formed from the discontinued Booker offshoot. Most of the new site will be occupied by a temperature-controlled warehouse and distribution facility, using low voltage LED lighting, including light and warehouse
The new head office site and RDC. Binge: ‘The turnover figures are fantastic.’
door sensors and solar panels on the roof. It is believed there will be more than 60 delivery vehicles. The 22,000 sq ft office area – on three floors – will incorporate the wholesaler’s marketing, commercial, quality control, finance, IT, customer services and telesales teams. Chief executive Andrew Selley said: “The move to Slough will enable us to operate from a high quality and modern facility which will alleviate pressure on existing depots in London
and the south. “The location and efficiencies that the new depot will bring will enable us to serve our customers with a fast, efficient service, as well as provide new employment opportunities for the local community.” The move represents phase three of a major development programme begun in 2012 with the acquisition of Forteith Foodservice in Scotland and South Lincs Foodservice. a Bidvest 3663 (0370) 3663 000
Booker sales hit £4.75 billion Final quarter sales for Booker Group brought the total for the year to 27 March (including Makro) to £4.75 billion – up by 1.5%. Annual like-for-like sales increased by 2.9% for nontobacco and 1.1% for tobacco. In the 12-week period, inclusive group sales rose by 1%, with tobacco ahead by 1.2% and non-tobacco by 0.9%. Booker like-for-like figures were up by 1.7%, of which tobacco accounted for 0.6% growth and non-tobacco 2.3%. Chief executive Charles Wilson reported that Booker Direct, Ritter Courivaud, Classic Drinks and Chef Direct all experienced a good quarter. 06
11% rise Fairway Foodservice boosted turnover from £498 million to £556 million (up 11%) in its last financial year. The group has 17 member wholesalers, operating in the UK, Ireland and Spain. Chief executive Chris Binge said: “The members’ collective turnover figures for 2014 are fantastic. Every one lifted turnover, with one exception. And that business enacted a planned strategic customer-base change. The increased top line is also reflected in the bottom line.” Binge added: “It seems as if the strong trend of the past 15 months is continuing.” a Fairway Foodservice (01422) 319100
More business with retailers and caterers.
Like-for-like total sales increased by 2.7% to retailers and by 2% to caterers. Wilson added that underlying non-tobacco volumes were good, rising by 4.5% in the year. He said: “Customer numbers increased by 4% to
549,000 and customer satisfaction improved. Internet sales rose by 12% to £874 million. Profits for the year remain in line with expectations, although the outlook remains challenging.” a Booker Group (01933) 37100
Craft Beer Clan of Scotland, launched last year by Glasgow-based wholesaler JW Filshill to help Scottish craft brewers penetrate key markets, has signed up 19 brewers from across Scotland. Targeting £2.5 million annual sales within five years, CBC exports to burgeoning markets in the Asia Pacific region and is also in discussions with distributors in Scandinavia, Dubai, Japan, Canada and North America. a JW Filshill International 0141-883 7071
[ INDUSTRY NEWS ]
Suszczenia is joint md David Grimes, who has been managing director of Parfetts Cash & Carry since 2011, has been joined in this role as joint md by former trading director Greg Suszczenia. Suszczenia began with the Stockport-based operator as a buyer, before managing the Halifax branch. He rejoined the head office trading team in 2008, becoming trading director five years ago. Grimes was the company’s financial accountant prior to being appointed deputy general manager of the Sheffield C&C. Before being named as md, he was Parfetts’ finance director for five years. Commenting on the appointment of Suszczenia
as joint md, Grimes said: “We have worked very closely together over the past four years, engineering the business transition from family-owned to employee ownership, as well as coping with all the usual business challenges.
“We have ambitious and exciting development plans for 2015. Greg’s wealth of knowledge and experience will help us to achieve our long-term objectives and maintain our excellent pattern of growth over the next few years.” Suszczenia added: “I am grateful to David for sharing the role of md as it will help those who aren’t quite close enough to our business to understand it.” Parfetts, founded in 1980, operates from six sites. As reported (p.10), although turnover last year rose by over 3% to £308.8 million, pre-tax profit dipped by £100,000 after a £900,000 fall previously. a Parfetts Cash & Carry 0161-429 0429
Food on the curriculum Bidvest 3663 has secured a contract worth £3.5 million a year to supply food and drink to around 260 schools in the south-east and the Midlands. The deal, through education catering specialist the AIP Group of Companies, includes the distribution of ambient, frozen and chilled food, as well as meat and confectionery – all compliant with the new School Food Standards as laid down by the Department for Education. A team of specialist Bidvest 3663 education account managers will offer advice to kitchen staff on a range of products. The wholesaler will also provide a bespoke marketing plan to support AIP’s goals and introduce the education catering specialist to food manufacturers in a bid to
Complying with official School Food Standards.
secure savings. Bidvest 3663 business development controller for the education sector Paul Brown said: “By offering a wide range of high quality, cost-effective ingredients that have been carefully chosen for the education market,
and bolstering this with personalised advice, we aim to provide a great food culture, help school caterers develop healthy and appealing menus and ensure pupils eat well.” a Bidvest 3663 (0370) 3663 000
Caterway collapse Nottinghamshire wholesaler Caterway has ceased trading after failing to secure new investment. The Sutton-in-Ashfieldbased company, which specialised in supplying fish & chips and related products to the hotel, restaurant and takeaway sectors, entered administration last month following a ‘sharp deterioration in trading’. FRP Advisory’s Nathan Jones and Chris Stirland were appointed administrators of the company on 20 March. All 22 employees have since been made redundant and an asset realisation process is underway. Stirland said: “Caterway had come under increased financial pressure in recent years. Attempts to seek investment and buyers for the business failed to materialise, leaving the directors with no choice but to seek the protection of administration.” Established in 1937, Caterway joined Landmark Wholesale at the start of last year and supplied over 600 customers along the M1 corridor between Northampton and Leeds. The company also had two depots in Spain. Caterway’s demise comes less than three months after md Rob Atkinson announced plans to sell the Leeds depot and integrate operations into the main Nottingham site. Atkinson was also appointed to the Landmark board late last year.
[ INDUSTRY NEWS ]
Channel Islands cut Country Range Group is ending its representation in the Channel Islands – an area with which it has been associated for 21 years. The decision means that Cimandis, with depots in St Saviour, Jersey, and St Peter Port, Guernsey, as well as Valley Foods, of St Martin, Jersey, will leave the group at the end of June. Unconnected with this is last month’s withdrawal from CRG of Coastline, of Christchurch, Dorset, which has been acquired by Silverstar Foods, of Cranbrook, Kent. CRG managing director Coral Rose (below) said: “One key reason CRG is so well respected by the foodservice trade is because of our group standards, with suppliers being able to deal with a central office knowing all initiatives will be supported by our members. “The biggest challenge to meeting group standards is faced by our members in the Channel Islands, whose dynamics do not support the adherence to a common set of standards. “We have decided not to operate with two separate standards as we do not want to compromise on what we can offer supplier partners.” Departure of the three members, leaving 13 in total, will have a considerable bearing on the projected annual turnover of £400 million (Cash & Carry Management: December 2014). a Country Range Group (0845) 209 3777 08
Meating customers’ needs Birchall Foodservice is now offering customers fresh meat cut and packed to order. Early this year, the Burnley-based family-run wholesaler moved to a new purpose-built distribution centre, more than doubling capacity to 64,000 sq ft. Under the Birchall Fresh logo, the butchery development is the culmination of an exclusive partnership with local and certified UK meat suppliers, who use traditional farming methods and enable full traceability from farm to fork. New managing director Justin Birchall (Cash & Carry Management last month) said: “Our dedicated team of butchers are catering for the individual requirements and
Pastures new for Justin Birchall and his team.
specifications of customers to the strictest production and distribution standards, providing a competitively priced, quality product.” All orders are delivered within 24 hours, along with frozen, chilled and grocery
products, on the company’s fleet of multi-temp vehicles. In addition to Burnley, the company has depots in Wrexham, Durham, Sheffield and Stafford. a Birchall Foodservice (01282) 429446
3663 even better equipped 3663 Catering Equipment, which as reported last month has won a renewed threeyear contract for all Pizza Express restaurants in the UK and China, has entered into a similar term arrangement with the Richoux Group. The equipment supplier’s associate company Bidvest 3663 is currently engaged in a two-year deal to provide food to the 17-outlet chain.
Richoux Group operates restaurants under three names – American-themed Dean’s Diner, Italian-style Villagio and American/Italian Zippers. All are being supplied with tabletop items, barware and non-food. Paul Knight, director of 3663 Catering Equipment, said: “Based on our experience of working with growing casual dining brands and
One of the restaurant group’s three brands.
our expertise in bespoke product design, we have developed a unique proposition for the Richoux Group.” a 3663 Catering Equipment (0370) 3663 960
£280,000 for ex-trade staff More than 700 people from across the grocery industry helped raise over £280,000 for GroceryAid as a result of the charity’s annual diamond ball in central London. Director general Gillian Barker said the money would
benefit nearly 200 ex-trade staff over the coming year. Major sponsors included 2 Sisters Food Group, Arla Foods, Coca-Cola Enterprises, Dairy Crest, Dunbia, Hain Daniels Group, Mondelez International, Nestlé, PepsiCo,
Philip Morris, Premier Foods, Procter & Gamble, R&R Ice Cream, Unilever, Warburtons and Weetabix. A diamond draw sponsored by Fayrefield Foods raised more than £10,000. a GroceryAid (01252) 875925
[ INDUSTRY NEWS ]
SWA politically correct The Scottish Wholesale Association, which regularly engages with politicians on issues affecting its members and their businesses, has appointed Edinburgh-based Caledonia Public Affairs to reinforce its political connections. The agency, which has vast experience in Scottish political and public life, is led by directors Margaret Smith and Devin Scobie. It is claimed that the SWA will now gain “valuable firsthand insight into the requirements of elected representatives and the importance of building relationships with key stakeholders”. Smith, who was MSP for Edinburgh West for 12 years, is a former Holyrood committee convener, deputy convener and front bench spokesperson on subjects including transport, education and health. She also has experience of working with trade associations.
Margaret Smith: ‘We have identified a raft of pertinent issues on which we need to engage with governments.’
Scobie, who established Caledonia in 2006, has worked in public affairs and public relations for more than 25 years. Smith commented: “The SWA already enjoys a high profile within the food and drink industry and our task is to extend that exposure to the corridors of Holyrood and Westminster. “We have identified a raft
of pertinent issues on which we need to engage with parliamentarians and governments north and south of the Border and are meeting Association members on the ground to identify any specific areas that matter to them and their businesses.” Kate Salmon, SWA executive director, said: “This is an exciting but challenging time for the wholesale industry given ongoing and imminent legislation, much of which changes pace very quickly. “For that reason, we need an experienced, dedicated team to keep abreast of the Scottish political scene as we approach the General Election in May and, in 2016, the Holyrood elections.” Supporting Caledonia’s work with the SWA is Euan Robson, former MSP for Roxburgh and Berwickshire for eight years. a Scottish Wholesale Association 0131-556 8753
James Hall adapts menu Several food innovations have been introduced by SPAR northern wholesaler James Hall & Co. They include – in conjunction with Manchester Japanese restaurant Samsi – a selection of ‘restaurant style’ sushi. The initial range consists of an eight-piece vegetarian option and eight-item fish pack (both with an rsp of £2), plus eight-piece norimaki (sushi rolls) at £2.50. Each tray comes with soy sauce, wasabi and grated ginger. The wholesaler has also relaunched its lunchtime range, comprising 34 SPAR and Great Northern items.
Manchester site Bidvest Logistics has signed a seven-year sublease for a 208,000 sq ft warehouse at Fraser Place, Trafford Park, Manchester. The annual cost is £988,000. Fraser Place is located in the Electric Park area of the 1,300-acre site, where both Kellogg’s and Associated British Foods have national distribution centres. a Bidvest Logistics 0161627 0050
Vege demand A new survey suggests that foodservice wholesalers should be offering restaurants a wider choice of vegetarian meals. Research by vegetarian and vegan products distributor Vegetarian Express found that over half of consumers questioned want more vegetarian dishes, with onethird asking for between five and 10 on menus. Some 41% said the best options were in Indian cuisine. a Vegetarian Express (01923) 249714
Sushi is now available from James Hall.
Completing the selection are three new SPAR salads. Additionally, James Hall has revamped its Meal Deal offer, featuring a main, drink and snack for £3.25.
It has also introduced two new SPAR snack bags: mixed apple and apple & grape, both at 60p. a James Hall & Co (01772) 706666
Danish brewer Royal Unibrew has appointed Christian Barden managing director in the UK. He was formerly head of sales at Cott Beverages. The company, which produces cider and soft drinks as well as beer, leads its UK offering with the Supermalt brand. a Royal Unibrew (0203) 195 2960
[ INDUSTRY NEWS ]
Parfetts stems profits fall Parfetts‘ pre-tax profit dipped from £3.7 million to £3.6 million in the year to 30 June after a more marked fall in the previous 12 months (down from £4.6 million). Turnover was up by just over 3% to £308.8 million. David Grimes, speaking as managing director (he is now joint md: see p.7), described the results as “an excellent set of trading figures yet again in spite of the ongoing economic challenges”. After praising his staff, he said that one of the highlights of the year was the Sheffield depot’s 10th anniversary celebration; another was the completion of a modernisation programme across all six branches. Grimes also referred to
David Grimes: ‘An excellent set of trading figures.’
the family business director of the year award from the Institute of Directors won by chairman Steve Parfett. In addition, the Go Local Extra store in North Wingfield, near Chesterfield, won the best impulse retailer category in a trade competition Commenting on the economic climate, he said: “The markets in which we operate
remain highly competitive and duty fraud is still a major problem. “The number of convenience stores opened by the multiples continues to increase and the impact on our retail customers is huge. We are doing everything possible to help them develop their businesses to compete with this threat.” In this context, Grimes said that the Go Local initiative operates as a three-tier retail club, with over 1,000 shopkeepers participating in the promotions. More than 100 of them carry one or other of the Go Local fascias. The catering channel and Click & Collect are other growth areas for Parfetts. a Parfetts C&C 0161-429 0429
Own-label chilled desserts The Best-in chilled range from Bestway Wholesale has three new twin-pack desserts – tiramisu, caramel panna cotta and profiteroles. Each is dual price-marked at £1.59 or two for £3 and offer an ‘attractive’ profit on return. The packs (2 x 90g for the tiramisu and profiteroles and 2 x 120g for caramel panna cotta) – have a minimum 25-day shelf-life. Packaging shows the useby date, country of origin and nutritional information, while allergens are also highlighted in the ingredients list. Helen Munro, category manager for chilled food at Bestway Wholesale, said: “Over the past few months we have introduced a range of chilled snacks, fresh meat and poultry, fruit & veg, sandwiches and now premium desserts. 10
One of three newcomers.
“This is a long-term strategy; there is much more innovation to come from Best-in. “Chilled & fresh is a vital category in the development of the convenience sector. Shoppers want to see the same value and products in their local store as they see in the multiple chains. But we can’t just introduce a whole raft of chilled in one go. We have to be selective. So we
have limited the launch of the new chilled desserts to three skus.” The new range is available through Bestway and Batleys branches with a wholesale selling price of £7 for eight twin-packs. The retail margin is 45% when the products are sold singly and 39% when retailed as multi-buy. a Bestway Wholesale 0208453 1234
Promotion for Michael Cash & Carry Management has promoted former editorial assistant Michael Catling to deputy editor. Catling joined the magazine in April last year, having graduated from Staffordshire University with a first-class degree in sports journalism. Commenting on his promotion, managing editor Kirsti Sharratt said: “Michael has proved himself to be a very capable journalist and was instrumental in the successful redesign of Cash & Carry Management last year. He has also been quick to grasp the complexities of the cash & carry and delivered wholesale industries and the customers they serve.” Catling added: “I feel incredibly grateful for the opportunity to assume greater responsibility across all aspects of production, and I am excited about a number of projects planned for the second half of this year. “Since I joined Cash & Carry Management, I believe I have flourished under the guidance of Kirsti Sharratt and Mervyn Gilbert – two hugely experienced and knowledgeable journalists. I look forward to repaying their faith in the coming months.” a Cash & Carry Management (01342) 712100
[ IN FOCUS ]
The Best-way forward: The Great Rebate programme is open to all registered customers of Bestway and Batleys, including Best-one and Xtra Local groups.
Bestway kicks off new trading period with 3% rebate promotion for retailers estway Group has relaunched its rebate promotion for a second year running, arming retailers with top-performing products and category management advice to help maximise the “fantastic growth opportunities” in the convenience channel. The Great Rebate scheme is designed to persuade retailers to stock a selection of core lines, as featured on a ‘monthly shopping list’, by rewarding participating stores with a 3% rebate for every product purchased. Retailers will also have the chance to win one of six new Nissan NV200 vans, via a monthly prize draw mechanic. Dawood Pervez, marketing director for Bestway (pictured), said: “There are still thousands of independents out
there who are either not aware of the best-sellers or are choosing not to stock for whatever reason. “The Great Rebate promotion in Bestway and Batleys highlights all the top performers, gives advice on how best to display and signpost each category and incentivises retailers to purchase by offering a 3% rebate on muststocks.” Running until the end of September, the summer promotion replicates last year’s Core Connect programme, which was responsible for lifting sales of key brands in independents by more than £50 million. Bestway customers also received £1.5 million in the form of rebates. Salih Sheikh, marketing manager at Bestway, added: “Core Connect was a
great success, but The Great Rebate is designed to support retailers more than ever before. “The initiative is simple: customers get 3% rebate on the best-selling promotional products. If a retailer participates in an additional volume deal on featured products, then he can unlock another 1% rebate and will receive an entry into the prize draw to win the van.” The promotion will benefit from extensive visibility in-depot and will be backed by a sizeable multi-media communication strategy, including digital and trade CCM press activity.
Convenience channel: what the numbers say... a a
In 2014, sales exceeded £37 billion. Value share is forecasted to grow from 21.4% to 24.1% by 2019. 96% of suppliers see convenience as a significant growth opportunity. Symbols and independents account for almost 60% of total turnover. The typical UK shopper visits their local store 3.7 times each week, spending an average £6.13 per visit (him!) All data unless otherwise stated: IGD
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O . E H T AT E O T N U F * ! K SNAC
Pioneering new concepts Today’s Group has come a long way since Bill Laird took over the helm six years ago. But as Michael Catling found out, the group’s ambition shows no signs of relenting.
By Michael Catling Deputy Editor Exclusive insight ith a career spanning nearly four decades across the retail and wholesale industry, Bill Laird knows better than most the small margins between success and failure. His CV reads like a who’s who of current and former retail giants. From Asda and Woolworths to Somerfield Stores and The Midcounties Cooperative, it should come as no surprise that Laird considers himself a retailer, first and foremost. As one supplier recently quipped, there are few better to lead the largest wholesale buying group in the UK. Since replacing Rodney Hunt as managing director of Today’s Group in March 2009, Laird has overseen the company’s split from Nisa Today’s, the launch of Today’s own-label brands and the recent recruitment of 19 former National Drinks Distributors members.
He explains: “We want to maintain the growth we have established in the sector. In the past, our sector has been very traditional and old fashioned. I don’t think that is the case any more, and we are constantly looking to innovate and extend our membership. “We can’t teach someone like Pradip Dhamecha how to wholesale, but we can provide other specialised services and advice which saves our members from investing in new business structures or extra manpower.” To help create a chain a loyalty, Today’s has unveiled plans to increase its presence in the on-trade by developing a new member support package. The group has pledged to maximise outlet development opportunities by strengthening relationships across all points in the supply chain, while also creating an alternative route to market with a national reach, locally executed. This will be supplemented by macro data, consumer-facing digital platforms and marketing packages – all of which will enable wholesalers to help independent on-trade outlets compete with the nationals.
Laird adds: “We are the only buying group with an on-trade business and we have a unique selling point that can attract a new selection of wholesalers. “Our objective has always been to increase and enhance our members’ customer base. This represents the core of our business year after year.” The commitment comes a little over six months after Romford-based delivered drinks wholesaler, Hills Prospect, joined the group’s on-trade membership, having initially declined an invitation to do so in early 2014. Today’s on-trade division, which comprises 27 independent members supplying 21,000 pubs, clubs, restaurants and hotels across the UK, will be led by Francesca Sabin, former group buyer for HB Clark, who has been appointed as Steven Graham’s successor following his retirement last month. Sabin, pictured above with trading director John Baines (left) and md Bill Laird, said: “I am delighted to be joining the team at such a dynamic time and I am looking forward to working with our membership and suppliers to drive the CCM on-trade business forward.”
[ BEHIND THE SCENES ] Today’s unveils own-label pet food
From left to right: Bill Laird, managing director of Today’s Group; Simon Hannah, managing director of JW Filshill; and awards host Ian Robertson.
Today’s honours members at star-studded awards bash JW Filshill celebrated double success at the Today’s Group Awards Dinner in Berkshire last month, scooping the IT Initiative of the Year and Outstanding Contribution to Wholesale awards. The Hillington-based company, which is celebrating its 140th anniversary this year, prevailed over Savage & Whitten Wholesale (Highly Commended) to collect the Outstanding Contribution to Wholesale title. Managing director of Today’s Group Bill Laird said: “Our wholesale members and retail customers have proved that they are hugely successful and demonstrate hard work and commitment in their businesses. “Today’s is proud to work with the most insightful and ambitious companies and individuals in the industry.” The awards evening, which was hosted at Ascot Racecourse, featured guest appearances from rugby greats Ian Robertson and Jason Leonard
(below) and ran in conjunction with Today’s inaugural trade show, which was spread over a two-day period. Laird added: “Initial feedback indicates that the trade show has been incredibly successful for both our members and suppliers. “The exclusive members-only format created an environment that promoted high-quality discussions and negotiations, offering suppliers across the grocery, foodservice, licensed (on and off-trade) and non-food sectors a strong platform to showcase new prodCCM ucts and campaigns.”
Today’s Group Awards 2015 – roll of honour IT Initiative of the Year: JW Filshill, Hillington, Glasgow Foodservice Operator of the Year: John Mower & Co, Hoddesdon, Herts Symbol Operator of the Year: Savage & Whitten Wholesale, Newry, N Ireland Retail Club Operator of the Year: Dhamecha Foods, Wembley, London Symbol Retailer of the Year: Day-Today, Skye Road, Glasgow (United Wholesale Scotland) Rising Star: Holland Bazaar, Edmonton, London Corporate Social Responsibility Initiative: Khanjra International Foods, Blackburn Member of the Year: Hughson Bros, Shetland Outstanding Contribution to Wholesale: JW Filshill, Hillington, Glasgow
Today’s Group has extended its own-label portfolio by launching Today’s Select For Pets. The range, which offers a 30% POR for retailers, features two £1.15 price-marked dog food flavours (1,200g), as well as four 400g cat and dog variants. The smaller formats, which display a 55p price point, are available in chicken, beef and fish flavours, while the 1,200g packs come in a choice of chicken or beef. Today’s retailers will also have access to posters, shelf talkers and fact cards. The 400g-can outer trays are also branded with the Today’s logo and can be merchandised straight onto retailers’ shelves.
Symbol stores to receive ACS benefits Today’s has announced it is working with the Association of Convenience stores (ACS) membership to offer new and existing symbol group retailers free ACS membership. The organisation, which supports independent outlets in the lobbying of government legislation that impacts the convenience sector, will provide retailers with complimentary access to its Assured Advice Scheme – a set of guidelines covering key legislative issues, such as the tobacco display ban, hygiene and product safety. To support the ACS’s tobacco legislative guide, Today’s is distributing an information pack to offer guidance on acceptable PoS and merchandising, plus advice on staff training.
[ SPECIAL REPORT ]
Matthew Clark toasts record number of visitors at portfolio tasting event atthew Clark celebrated its largest-ever turnout at its annual trade tasting day in London last month, with visitor numbers up 15% on last year. The #WhyWeLoveWine event, which attracted nearly 1,000 visitors to Tobacco Dock, displayed over 450 wines to sample and featured nearly a dozen masterclasses from industry experts, including Michelin-starred chef Josh Eggleton and Austrian producer Willi Opitz. More than 30 new producers and an innovative menu engineering service were also showcased at the event – both of which received widespread commendations from customers and suppliers alike.
‘This is by far the best tasting I’ve witnessed in my 18 years at Matthew Clark’ Simon Jerrome purchasing director Matthew Clark’s generator bar concept, which housed the menu engineering service, offered marketing insight, collated by the group’s research into customer trends and on what makes for a top profit-enhancing wine list. Luke Millar, wine list design manager at Matthew Clark, commented: “We had hundreds of customers walk into the
generator bar with overwhelming enthusiasm to redevelop their wine list using the Matthew Clark tool kit. “Over 40% of the generator bar’s visitors could immediately see and understand the benefits of redeveloping their lists with our bespoke wine engineering service.” Echoing Millar’s sentiments, wine controller Laurie Davis lauded the group’s specialist services and highlighted the record attendance figures as evidence of Matthew Clark’s burgeoning reputation. He told Cash & Carry Management exclusively: “We have evolved from being a traditional wholesaler, with just delivered products, to covering all elements, from marketing and selling to hospitality training and engineering wine labels. “On the back of last year, we not only picked up a lot of customers and growth, but we also secured a lot of new suppliers. “We are now the exclusive UK agency for several producers and we are gaining a real foothold in the preCCM mium wine market.”
Record-breaking feat: Matthew Clark surpassed £100 million sales in December 2014.
Siobhan Irons Wine buyer at Matthew Clark Broadening the group’s portfolio: “We have got a really wide customer base, from Michelin-star restaurants and five-star hotels to the Dog & Duck on the village corner. We have to stock a large range to suit everyone, hence why we have as many wines as we do. We are currently looking to attract more premium accounts because we believe we have something unique to offer them.” Educating the trade: “Our point of difference is built around the extra value we offer. The expertise of our staff, the breadth and depth of our range and our close relationships with our suppliers all contribute to offering something unique. We provide foodpairing suggestions and wine expression guides to support our customers, as well as a direct-toconsumer brochure [which features special offers every month]. Our trade tasting day is also an essential part of what we do and allows our customers to meet producers face to face. Without this, the heritage and passion behind every wine would be lost.” What the future holds: “Our stability and positive growth are testament to our hard work and always thinking one step ahead of our competitors. It is important to keep innovating, and we listen to our sales force who are really important in identifying market trends. There will be plenty of changes over the next 12 months, with five other tasting days, covering loads of different categories, planned throughout the summer.“
[ LEGAL ADVICE ]
Is your data protected? Review your internal controls used by other people for purposes that they agree to. The UK enforcer of data protection and security, the Information Commissioner, is not going away, so now may be the time for you to review your internal controls and commitment to data privacy and protection.
Meet the legal expert Helen Jenkins, Legal Edge Helen Jenkins is a legal counsel to small and medium businesses
he pressures of running a business are complex, and legal policy and training is often low on the list when juggling priorities. However, there are some basics which, if ignored for too long, could put you in a business-critical position that you had not planned for. From reports in The Herald, it seems that Nisa is facing such a problem with the repercussions of a members’ data leak. This has reportedly led to the loss of several non-executive directors and the cost of an internal investigation. What is often less easy to quantify in such circumstances is the damage to the company’s reputation, not to
mention the impact on management time to rectify a problem that is usually preventable with processes, policies and staff training. The Data Protection Act 1988 has been with us for long enough that there is no excuse for missing the basics. It is there to give individuals protection and control over their data so that the information is kept confidential and only
Quick guide to data protection • If
you collect ‘personal data’ about any individual, be that customer or employee, like their name, address, phone number or email, then you will be required to comply with certain principles to protect that data. Personal data may also include opinion about an individual.
• If you use that personal data in your day-to-day business – for example, to send customers a brochure or deliver product to them – then you have to tell them what you are using their data for when you collect it. Particular care should be taken with ‘sensitive personal data’, which includes, for example, data about religious or political views. For this, you will need explicit consent from the people concerned to collect and use this data.
• Every so often, you must check that your data is accurate, up to date and not
Top five topics for training your staff 1. Emails should be password protected and computers kept locked when not in use so that data is secure and to prevent anyone without authority from viewing data. 2. Any devices that contain personal data or hard copy data should not be taken out of the office unless absolutely necessary (or without permission). 3. Personal data should not be disclosed or discussed with the individual unless you have been through adequate security checks, such as passwords, to verify that they are that person. If in doubt, don’t disclose it. 4. Don’t record any data or send emails that include personal data, particularly opinion, unless you would be happy for the individual concerned to see it. Don’t forget that they can ask to see the data you hold about them. 5. If someone asks, in writing, about the information you hold about them (a ‘subject access request’), then you must respond within 40 days. There is certain information that the individual has the right to know, but there may be exceptions when you don’t have to disclose the data. With the right procedure in place, you can deal with these efficiently. Penalties for data breaches can be severe, with fines of up to £500,000. CCM
kept for any longer than you need to. For example, if a customer stops buying from you, then you don’t need to keep their data forever.
• Anyone who you hold information about has the right to know what it is. They can ask for a copy of that information in a ‘subject access request’.
• You must protect your data and keep it secure so that it can’t be accessed by anyone who doesn’t need to access it. It is important to put in place technical and practical security measures.
Legal Edge provides data protection audits and can assist with your compliance policies and training. Legal Edge are a group of experienced lawyers who have all worked in businesses across a range of industries and who offer practical solutions to legal matters. Contact email@example.com.
[ SPOTLIGHT ]
Terry Larkin, general manager of JJ Food Service If you were able to retire tomorrow, would you? My boss tells me that I’m not allowed to retire! But honestly, if I had the time, I would do more car rallies. There’s one called Mille Miglia, a 1,000km race in Italy. Only 375 vehicles from all over the world are selected to do it and you need to have a pre-1920s car. Last year, I took part in The Italian Job (pictured). This is a car rally for anyone with a Mini or classic car from the Michael Caine film. It involves driving round Italy while raising money for the children’s charity Variety. I’ve actually completed it four times since 2008 and I’ve even managed to get my wife and son involved!
Classic car enthusiast driven to do his best What has been the major milestone or turning point of your career? When I went from being a professional chef to a sales person. After working as a chef and a relief catering manager, I applied for a job with Brakes – I’d always had an interest in sales and Brakes needed someone with catering experience for a sales role. It was perfect. Who has been the biggest inspiration to you? Paul Haggar, divisional director of Brakes. He gave me the tools and the confidence to be a great sales person. When I started the job, I had a lot of selfdoubt, but he helped me to obliterate that. Nothing was ever too big for me to accomplish. He was very charismatic and great fun to work with. Unfortunately, we lost touch – it would be great to hear from him again. How do you maintain a work/life balance and how have developments in technology affected this? In our market, nothing ever stops – our customers are ordering up until 9pm and our delivery drivers are up at the 18
crack of dawn, so even when I’m at home, I’m keeping half an eye on what’s going on. I have my personal laptop and iPad on while I watch TV.
What advice would you give someone starting his/her first job? Listen to everyone and take on board as much knowledge and information as you can, then apply it to yourself. Don’t be afraid to push boundaries, otherwise you’ll never really know what you can achieve. It’s important to enjoy what you do, too. My motivation is to do my best with as much passion as possible. In that process, I hope to inspire other people.
What most frustrates you in business and in life generally? Lack of communication. If you ask someone a question, you should be able to expect an answer in a timely manner. It applies to all walks of life, whether you’re dealing with a colleague or a customer or an estate agent. Ideally, everyone should have an inbuilt reasonable response time.
If you had a million pounds to invest, how would you spend the money? I really love classic cars – everything from the physical driving to the way they look. Even as a child I used to enjoy driving, and my mum let me park her car from the age of eight! (Larkin is pictured – above inset – with his first Mini.) If I had a million pounds, I’d start CCM my own classic car business.
Celebrating 20 years at JJ Food Service On leaving school, Terry Larkin trained as a chef (City & Guilds) and got his first job as a relief chef, which involved travelling to restaurants that required an extra pair of hands. After that, he went into relief catering management, which was all about troubleshooting. He then moved to Brakes in a sales role, staying there for 12
years. He was headhunted by Booker Fitch in 1993, where he worked for 18 months before joining JJ Food Service. This year, Larkin is celebrating his 20th anniversary with the £183 million foodservice specialist. As general manager, he has a wide range of duties covering all eight sites, and he also heads up the group’s sales team.
Available at all branches www.bulldogenergydrink.co.uk
Trade enquiries welcome
and many other leading wholesalers.
[ EMPLOYMENT LAW ]
Correct use of CCTV footage in disciplinary action Employees on maternity leave continue to accrue holidays at their normal contractual rate and should be allowed to take this accrued leave upon their return to work. Alternatively, they can delay their return to work after their paid maternity leave period ends, and take their holiday as paid leave before returning to work. In future, you could let employees take some holiday before their maternity leave commences and then some afterwards, therefore spreading the financial advantage to them and the CCM administrative burden to you.
Meet the HR expert Cate Ritchie, 121 HR Solutions Cate Ritchie is a fellow of the Chartered Institute of Personnel and Development
We have CCTV installed on our premises and all staff are aware, via signage, that they are being monitored. An employee has raised concerns about this and has said that CCTV footage is deemed to be personal data under the Data Protection Act and should not be used as evidence as part of an investigation meeting regarding a breach of company rules. Is this correct?
Data obtained through CCTV or similar surveillance is personal data and, theoretically, consent would be required before you can use recordings for any disciplinary process. However, if you have a written policy that outlines the way that the CCTV footage is likely to be used, then you may use it for the purposes of any investigation. You do not require employees to sign or agree to this policy as you are entitled to put it in place and simply inform employees that it is there. You would be able to use information retrieved through employee monitoring for the purpose of evidence. The content of the monitoring (CCTV video images) should be made available to the employee in order for the individual to understand the case against them and respond accordingly.
We have an employee on maternity leave who has requested to take a week’s holiday during her leave to boost her maternity pay. She does have some annual leave to carry forward to next year holiday year. Are we able to pay this to her during her maternity leave, rather than her taking the time off upon her return to work? 20
Unfortunately, an employee cannot be on maternity leave and holiday at the same time. Equally, you should not make a payment in lieu of employees’ holidays whilst they are on paid maternity leave, as this would be in breach of the Working Time Regulations 1998.
121 HR Solutions provides employers of all sizes with professional, cost-effective human resource support. If you need guidance about any HR issue, contact Cate at firstname.lastname@example.org or phone (0792) 121 3890.
Driver wins unfair dismissal in drugs case Alan Bailes, who had been employed as a bus driver for more than 22 years, was judged to have been wrongly dismissed from First Bristol for gross misconduct, after an employment tribunal heard evidence that traces of cocaine could have come from the bank notes that were handled by the driver during his duty. It was argued that the process used to test – saliva analysis – was unreliable and it was suggested that more than 88% of bank notes carry detectable traces of cocaine. Bailes was not invited to wash his hands before the drug test and had to handle the swabs used to collect his saliva sample both before and after. The fact that he had eaten sandwiches just before the test increased the chance of hand-to-mouth contamination. There is no national standard or government endorsed cut-off level for
saliva testing and, as a result, it is sometimes considered unreliable, particularly when compared with urine or hair testing, which is regularly accepted by the courts. Bailes provided a hair specimen at his own expense which covered a history of 90 days, and the result was negative for cocaine and its metabolites. However, despite presenting this evidence to First Bristol, the company refused to reinstate Bailes, who is reported to have had no previous disciplinary record in his 22-year career. An employment tribunal ruled that Bailes should receive the maximum compensation that could be awarded for his unfair dismissal, which is said to be in the tens of thousands. The judge heavily criticised First Bus for failing to carry out proper investigations before dismissing a long-serving employee with an impeccable record.
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[ BIG NIGHT IN ]
Cheap, quick and easy Since the turn of the millennium, social occasions have been revolutionised by reality shows, online streaming services and a new gaming culture. Expensive and extravagant out-of-home experiences have been replaced by casual get-togethers and pre-drinking occasions, fuelling the growth of food-to-go propositions and sharing pack formats. espite shoppers remaining cash-conscious and restricting their leisure spend, the increased trend for at-home entertaining remains on an upward curve, as people still want to get together with family and friends and make the most of seasonal events and social occasions. From a girls’ night in to a romantic meal for two, retailers are increasingly recognising the need to prepare for semiplanned and last-minute trips. After all, one in four shoppers say they spend more on products for these occasions (Britvic/PepsiCo). Kepak Convenience Foods highlights the UK’s £451 million ‘hot, quick & tasty’ category as a ‘major opportunity’ to make money from the chilled food market, which is on track to reach annual sales of £1 billion over the next decade. John Armstrong, marketing director of Kepak, comments: “Retailers are turning to cash & carries in the knowledge that their shoppers want a selection of hot and cold food that can be prepared in next to no time, without having to interrupt their social fix.” Kepak is targeting its recently launched Super 6 range at the Big Night In occasion. Rustlers Super 6, which accounts for more than 40% of all sales within the micro-snacking market, features six top-selling Rustlers SKUs, all pricemarked at £1.99. Comprising micro-snacking, quick-serve micro meals, micro pastry and chilled soups, hot, quick & tasty products sit within the food-to-go remit and “can help to increase basket spend for retailers”, claims Armstrong. He continues: “We’ve seen numerous examples of retailers boosting shoppers’ Big Night In spend by offering their customers complementary products as part of a deal, such as two Rustlers products and a two-litre soft drink for £5. It’s easy to implement, boosts sales and provides consumers with the value they’re seeking. “Cash & carries can use Rustlers Super 6 to develop Big Night In sales, sharing in what we estimate will be an additional £5 million worth of micro-snacking sales in 2015.”
All data unless otherwise stated: IRI
The Rustlers Super 6 range includes the Quarter Pounder, already bought by two million households, and BBQ Rib, the UK’s second best-selling micro-snack. 22
Did you know? 86% of households buy sharing packs at least once a month (Kantar).
The entire Rustlers range has recently undergone a packaging redesign, to help reflect the brand’s broader 16 to 34year-old core target market, of which 40% is female. Displaying a new Rustlers logo, product photography and the Rustlers signature flame, the artwork reflects the brand’s new positioning, focusing more on hunger satisfaction than speed.
Satisfying cravings Snacking makes up half of all eating occasions (Hartman Compass), with shoppers choosing to replicate out-of-home experiences, such as going to the cinema, by opting for large bags of popcorn, crisps and sweets. On these occasions, Kettle Foods claims that consumers want to treat themselves, and their guests, and look for products to create a feeling of ‘specialness’ in their home environment. The Kettle sharing bags are key to driving consumer trade up and delivering category growth, according to Nielsen, with impulse sales rising by 6.5% year on year, versus -0.8% for the total category. To tap into the £818 million sharing category, which is currently growing at 6.7% (Nielsen), Kettle recommends stocking five of its most popular seasonings in both 150g bags and 100g PMPs. These comprise Lightly Salted, Mature Cheddar & Red Onion, Sea Salt & Balsamic Vinegar, Sea Salt & Crushed Black Peppercorns and Sweet Chilli & Sour Cream flavours. Elsewhere, PepsiCo has extended its snacks portfolio by introducing a new Doritos Roulette bag, containing a selection of ultra spicy tortilla chips hidden amongst its popular tangy cheese flavour. The latest innovation, which has an rsp of £1.99, precedes a £2 million investment in a new integrated marketing
[ BIG NIGHT IN ]
campaign, which positions Doritos as a ‘snack for the bold‘. KP Snacks and Kellogg’s have also expanded their crisps portfolio by introducing Phileas Fogg Spanish Corn Chips and Pringles Tortilla respectively. The former variant (rsp £1.99), which comes in a Smoky Chorizo Spice & Red Pepper flavour, taps into the popularity of chorizo, which has become a grocery staple in the UK. Meanwhile, Pringles Tortilla is available in four flavours – Nacho Cheese, Sour Cream, Spicy Chilli and Original – and is supported by a £3.5 million marketing investment, including TV advertising, a PR campaign and experiential tasting opportunities in high-footfall areas. The Pringles Tortilla range, which is intended to ‘revolutionise’ the £150 million large sharing tortilla category (IRI), has an rsp of £2.48 and is packaged in a resealable can.
Getting the basics right Mondelez International urges wholesalers to encourage retailers to stock a range of products across the confectionery, savoury and drinks categories that cater for different taste and textural preferences. The Cadbury-branded bitesize range fulfils this brief, according to Susan Nash, trade communications manager at Mondelez, with nearly a dozen SKUs featuring large, re-sealable pouches for added convenience. To improve merchandising efficiency and shelf presence, Nash recommends offering a selection of hanging bags and single countlines, which make it easier for consumers to identify their favourite brands.
“Providing an impactful, well signposted Big Night In display will encourage customers to purchase multiple sharing products from different categories,” says Nash. “This can drive cross category trial and purchase in store, which builds the size of shopper baskets.” In the soft drinks category, Britvic Soft Drinks identifies J2O, 7Up and Pepsi as ideal alternatives to alcohol, and advises wholesalers to stock a selection of multipacks and large bottles, such as 1.5-litre and two-litre, to cater for a wide range of sharing occasions. As an alternative, Coca-Cola Enterprises highlights the versatile nature of 4 x 300ml can formats, such as Coca-Cola, Diet Coke and Coke Zero, which can be consumed individually or shared with others. To take advantage of promotions linked to the Big Night In occasion, particularly major sporting events, Heineken suggests signposting fixtures with branded PoS material to help maximise exposure. Recent Heineken research reveals that the number one purchase occasion within convenience for beer and cider is a planned gettogether with mates. This is closely followed by males shopping for beer and cider for a quiet night in, perhaps to accompany a meal or to drink whilst watching a sporting event. “Shoppers tend to stick to the brands they know and love,” says Craig Clarkson, category and trade marketing director – off-trade at Heineken UK. “Bulmers is a brand that appeals to both men and women and also taps into the growing trend for premiumisation, allowing shoppers to create the feeling of a ‘great night out’ at home. “The best-sellers, like Foster’s in a 4 x 500ml pack and John Smith’s Extra Smooth in a 4 x 440ml pack, are also key and deliver very strong rates of sale.” To help retain customer loyalty, Heineken reiterates the importance of reminding retailers to keep beers and ciders chilled, since 80% of convenience shoppers consume these beverages CCM within two hours of purchasing (him!).
All data unless otherwise stated: Nielsen
For further information:
Products from Coca-Cola Enterprises, PepsiCo and KP Snacks ideal for a Big Night In. 24
Britvic Soft Drinks (0845) 758 1781 Coca-Cola Enterprises (0845) 722 7222 Heineken 0131-528 1000 Kellogg’s (0800) 626066 Kepak Convenience Foods (01772) 688300 Kettle Foods (0800) 616996 KP Snacks (0845) 601 7583 Mondelez International (08702) 400861 PepsiCo (0118) 930 6666
[ BOTTLED WATER ]
Sparkling performance Better consumer awareness of the importance of health and hydration was a key factor in the growth of bottled water last year. Both plain and flavoured water increased in value. ater is the fastest growing category in the soft drinks market. Value sales in total impulse were up by 11% in the year to 3 January 2015, with the flavoured water sub-category ahead by 10% (Nielsen). Sales of plain water in the convenience channel grew in value by 13% in the 52 weeks to the end of February and represented 72.7% of the bottled water category. Specifically, total value sales of sparkling bottled water increased by 12.7% year on year to £95.6 million (IRI). According to Nestlé Waters, which produces Buxton and Nestlé Pure Life, there are trends towards smaller sizes like 50cl and 75cl, bottles with sports caps, and local brands. The company says that cash & carries/wholesalers should be advising retailers to give 20% of the soft drinks space in front-of-store chillers to water, of which 80% should be allocated to plain variants.
Top in plain water Highland Spring Group remains the largest manufacturer of plain bottled water in the UK. Supplying over 423 million litres annually, the company has a 19% volume share of the UK unflavoured bottled water market (Zenith International). In February, Highland Spring launched its first-ever advertising campaign exclusively for its sparkling water range. The ‘Escape to a Sparkling Moment’ promotion offers a top prize of a luxury Scottish break to Gleneagles and is part of a £250,000 investment in outdoor media and on-pack activity. This year, Highland Spring is further demonstrating its commitment to healthy active lifestyles through its partnership with the Lawn Tennis Association (LTA) and its schedule of summer grass court events. The initiative will encourage families to enjoy tennis through a multi-layered campaign that includes above-the-line, shopper marketing, digital, PR and on-pack activities. Commenting on the opportunity for the cash & carry/ wholesale channel, Andrea McQuaid, head of brand marketing at Highland Spring, says: “Wholesalers should be reacting to trends by stocking in-demand formats in various sizes. On-the-go formats are incredibly important, particularly for small retail outlets and catering customers.
Radnor Hills is promoting its Aqua Splash range in the cash & carry/wholesale sector this year. 26
“However, larger take-home still and sparkling formats are also benefiting from the health trend and are a big hit when it comes to hydrating during the day, as well as entertaining.” McQuaid continues: “Rather than grouping by brand or SKU, we suggest merchandising bottled water by drinking occasion or water type. Separate still from sparkling water and ensure that products are stacked vertically, instead of in long horizontal rows. This reduces customer confusion and makes it easier and quicker for shoppers to see what they are looking for.” “Give sufficient space to core brands, such as Highland Spring, and limit lines with lower awareness and rate of sale, which can easily dilute and clutter the soft drinks category.” Flavoured water accounts for 60% of the Radnor Hills business. Aqua Splash fruit-flavoured water provides fruity hydration and comes in a choice of variants and pack sizes. There are six flavours in the 330ml sparkling and 500ml still sports cap ranges: Lemon & Lime, Apple & Blackcurrant, Strawberry, Peach, Forest Fruits, and Orange & Mandarin. The rsps are 39p for the 330ml bottle and 59p for the 500ml format. Radnor Hills has introduced two of its still styles – Lemon & Lime and Strawberry – in a 750ml bottle with sports cap (rsp 99p). These two flavours are also available in 1.5-litre bottles. Radnor Hills produces special printed packs for Aqua Splash for cash & carries: 12 x 500ml, 9 x 750ml and 6 x 1.5-litre. The standard wholesale pack sizes are 24 for the 330ml and 500ml sizes, 12 for 750ml and six for 1.5-litre. The company is planning tailormade promotions for Aqua Splash for its cash & carry/wholesale customers this year. In the unflavoured water category, Radnor HIlls offers natural mineral water in 24 x 330ml (rsp 30p) and 24 x 500ml (rsp 59p) sparkling and still styles, with the option of a sports cap for the latter variant. Larger sizes are 750ml with a sports cap (89p) and 1.5-litre in still and sparkling (rsp £1.49). Both of these come in cases of 12. Radnor Hills is promoting its range at several food and trade shows this year up and down the country. Events include BBC Good Food Spring, Farm Shop & Deli Show, Caffé Culture, Foodies Festival and, for the first time, the Big Feastival.
[ BOTTLED WATER ] CBL Drinks has added an Orange variant to its Perfectly Clear range of still and sparkling bottled waters. The new flavour joins Summer Fruits, Strawberry, Apple, Cherry, Lemon & Lime, and Blackcurrant, which was introduced last year. Flavour variants are set to be a key trend for 2015, and CBL Drinks plans to add more new varieties later in the year. Commenting on the latest addition, Maurice Newton, sales & marketing director at CBL Drinks, said: “2014 was a great year for the brand and 2015 already looks set to be another year of growth. “Flavoured water continues to do well as a category, and Perfectly Clear is a firm favourite with customers, thanks to its great taste and zero sugar content. With spring on its way, now seems the perfect time to be extending our range. Orange is the nation’s favourite flavour, so it seemed an obvious choice.” Perfectly Clear flavoured spring water is available in 250ml, 500ml and 1.5-litre bottles, with rsps of 49p, 69p and 95p respectively. Case sizes are 12 for the two smaller sizes and eight for the 1.5-litre pack. Strathmore from AG Barr is growing at 15% (Nielsen) and awareness of the brand is at an all-time high, thanks to its role as the Official Water of the Commonwealth Games in Glasgow 2014. Strathmore is the only brand to offer a full portfolio of glass, PET and flavoured water. AG Barr recommends stocking a variety of formats, such as on-the-go packs, sports cap bottles, take-home packs and premium glass presentations, to suit different occasions. The company points out that summer is a key sales period for water. Last summer, it was the highest performing soft drinks category, growing at 54% versus the rest of the year (Nielsen). “It’s essential that cash & carry outlets ensure that their fixture space allocation reflects this so they can maximise sales,” says Adrian Troy, head of marketing at AG Barr.
Importance of provenance AG Barr points out that provenance and product benefits are becoming increasingly important to consumers. “People are not only looking for water brands they know and trust, they are also increasingly conscious about the source of the water,” says Troy. Strathmore’s on-pack message, ‘Strathmore – A source of clarity’, refers to the water’s origins in Scotland. In the functional water category, Coca-Cola Enterprises has relaunched glacéau vitaminwater multi-v as multi-v zero – with zero calories and zero sugar. Sweetened from a natural source using stevia leaf extract, glacéau vitaminwater multi-v zero has a lemonade flavour. To create stand-out on-shelf, there will be promotional neck collars available on all glacéau vitaminwater zero bottles until July. PoS material will also be available to drive trial. Caroline Cater, operational marketing director at CCE, said: “Glacéau vitaminwater is the number one functional water brand and launching a zero calorie and zero sugar option forms 28
Water boost in the on-trade In 2014, water became the nation’s fifth favourite on-premise soft drink, with a value of £296 million, according to Britvic’s Soft Drinks Review. With value sales up by 26.8% and volume by 23.2%, water has benefited from consumers looking for hydration, lower calorie drinks and more premium products, rather than just requesting tap water. The market leader Strathmore maintained its position in the on-trade, showing the most significant growth in the restaurant sector, where its value sales rose by 20.7% to £16.7 million. Options for children also proved to be winners in the water segment, with Robinsons Fruit Shoot Hydro growing by 5.7% to £5.9 million in family pubs and clubs. Meanwhile, the sales value of premium water Harrogate Spa rose by 172.5% to £5.2 million in pubs and clubs (CGA).
part of our wider commitment to offer consumers greater choice.” Glaceau smartwater was launched last year in Great Britain – the first market in Europe to offer America’s bestselling premium bottled water. The brand is already worth more than £3.6 million (Nielsen) and its early success is due partly to a wide-reaching campaign that included a TV commercial featuring actress Jennifer Aniston. Glaceau smartwater has an rsp of 57p for the 600ml version and 89p for the 850ml pack. Princes’ Aqua Pura brand achieved year-on-year growth of 14.9% in volume and 21.6% in value in 2014 (IRI). “Growth is predominantly coming from smaller pack formats such as 500ml, which suggests that more consumers are opting for drinking water on the go,” says Graham Breed, convenience channel marketing director for Aqua Pura. Aqua Pura has been supported with a ‘Choose Aqua Pura Life’ campaign, designed to promote a more active family lifestyle alongside the hydration benefits of water. The company also continues to sponsor some of the UK’s biggest massparticipation sporting events, such as Cancer Research UK’s Race for Life and the Great Run series. Princes’ flavoured water brand Aqua Fruta grew by 12.3% in both value and volume terms last year (IRI) and is positioned as a value-for-money option. The company promises NPD for Aqua CCM Fruta as it looks to build on this growth.
For further information: AG Barr (01204) 664295 Britvic Soft Drinks (0845) 758 1781 CBL Drinks 0191-516 3300 Coca-Cola Enterprises (0845) 722 7222 Highland Spring Group (01764) 660500 Nestlé Waters (01923) 897700 Princes Ltd 0151-966 7000 Radnor Hills (01547) 530220
Re-hy dra te t
ith w y wa y it u r f
330ml sparkling, 500ml & 750ml still sportscap and 1.5 litre still. Call our sales office: 01547 530 220
[ FLAVOURED MILKS ]
Milking new opportunities A staple product across UK households, white milk continues to dominate retail chiller cabinets. But with flavoured options gaining in popularity amongst adult consumers, store owners are now devoting more space to nutrient-rich, indulgent and meal-replacement alternatives, alongside kid-friendly packs. he dairy drinks market, which is valued at £488.3 million and growing by 2.37% year on year, has seen a proliferation of NPD over the last year, led by a selection of protein-enriched products and breakfast alternatives. More than 60 flavoured milk products, including new sizes and formats, have been launched in the last 12 months, according to IRI, fuelling 10% category growth in the 52 weeks to 21 February 2015. Although chocolate milk remains the favourite variant, flavours outside of the core varieties (chocolate, banana and strawberry) account for 38% of total value sales. To tap into this growing trend, Mars Chocolate Drinks & Treats has added Toffee Revels to its 350ml range – the company’s first toffee milk drink. Retailing at around £1.29, the on-the-go format sits alongside eight different variants, delivering a “clear point of difference to other brands”, claims Michelle Frost, general manager of Mars. She continues: “Our drinks range offers familiar packaging and flavours that benefit from brand recognition. “Wholesalers and cash & carries should stock a balanced range in order to deliver maximum profit and retailer pick-up. Mars’ 8 x 350ml range is the key pack size to deliver the best return for retailers, followed by Galaxy, Skittles, Snickers and Toffee Revels.” Mars reminds cash & carries to sell all Mars 350ml milk drinks straight from the chiller room – a strategy that should resonate with retailers and help to boost their sales in store. PoS material is also available from SHS representatives, including freestanding display units, posters and shelf-edge strips. Frijj, the UK’s number one flavoured milk from Dairy Crest (IRI), continues to recruit new shoppers ahead of the category average and, in the 52 weeks to 4 January 2015, was bought by over 5.2 million UK households – more than double the amount of the next biggest brand in the market (Kantar). To help create a more indulgent flavour profile, as requested in the company’s consumer feedback, Dairy Crest has announced the relaunch of Frijj Supreme.
All data unless otherwise stated: IRI
Creamy sensation: the ready-to-drink flavoured milks category has a 57% penetration of the dairy milk market, and is purchased 12 times a year on average (Kantar).
The premium milkshake range (rsp £1.30), which is available in four indulgent flavours – Honeycomb Choc Swirl, White Choc Raspberry Swirl, Sticky Toffee Pudding and Banoffee Pie – has undergone a full recipe and packaging refresh. Each 375ml bottle now features Frijj’s reinvigorated logo and packaging design, bringing it in line with the Frijj core range, which adopted the new artwork in October last year. This follows the January launch of Frijj 40% Less Sugar, a healthier proposition that capitalises on the macro consumer trend towards products that are low in sugar. Available in 471ml bottles, the two variants – Choc-aChocolate and Seriously Strawberry – have an rsp of £1.30 and respond to recent Dairy Crest consumer insight showing that sugar content is a barrier to category purchase for some 30% of shoppers. Laura Sheard, head of marketing – dairy drinks at Dairy Crest, says: “Consumers are increasingly looking for healthier alternatives and this trend is no different within food to go. “The category is well placed to respond to consumer needs, including healthier or lighter variants of key brands, but also products conferring specific benefits that can be used to actively manage health.”
[ FLAVOURED MILKS ]
All data unless otherwise stated: IRI
Demographic shift Previously considered a drink for kids, flavoured milks are now being purchased by many adults as part of their regular drinks repertoire, reports FrieslandCampina. The company’s sales director Michael Lawrence says: “Flavoured milk satisfies a different consumption need state – it offers more sustenance than other soft drinks and so can be used as a gap filler in between meals or as an afternoon pick-me-up.” Boasting a 68% share of the flavoured milk market within independent retailers, Yazoo holds the top three positions for the best-selling flavoured milk drinks in convenience stores. In September last year, Yazoo launched Yogurt Smoothie – a blend of yoghurt, fruits and oats – which offers an alternative to traditional fruit-based options that dominate the market. The range, which already has a 63% share of the yogurt smoothie market, has recently been expanded to include a 330ml smoothie (rsp £1.49) for on-the-go consumers. Dairy smoothies grew by 135% between 28 February 2014 and 2015, and the 330ml bottles will be available in Bestway and Batleys from May. In keeping with the growing importance of sustainability, FrieslandCampina has unveiled a selection of new fullyrecyclable Yazoo bottles. Manufactured using PET plastic, the ergonomic design dispenses with an aluminium foil lid, in favour of a screw-top for drinking on the go. Tracey Barney, managing director at FrieslandCampina UK, told Cash & Carry Management: “We are committed to investing in initiatives that have a positive impact for the environment. This new bottle is fully recyclable, it’s resealable for convenience, and our research shows that customers love the new design.” The changeover from the existing HDPE bottles is currently being initiated across all 300ml formats, with other packs set to undergo the same process during 2015. 32
Grace Foods UK, brand owner of Nurishment, believes that cash & carry outlets should pay close attention to the growing demand for both convenience and functional products when stocking their flavoured milk fixture. Nurishment, the UK’s best-selling nutritionally enriched milk drink, continues to gain traction with brand loyalists, with its Extra PET range catering for consumers seeking a resealable, on-the-go format.
‘Cash & carries and retailers can maximise profits by stocking milk drinks suitable for multiple occasions’ Nyree Chambers, head of marketing, Grace Foods UK “Cash & carries and retailers can maximise profits by stocking milk drinks that are suitable for multiple occasions,” says Nyree Chambers, head of marketing at Grace Foods UK. “Nurishment fits the bill – we’ve found that it appeals to a broad range of consumers, from busy mums to those doing work that involves physical stamina.” To broaden the brand’s appeal globally, Grace Foods has announced a new partnership with Speedworks Motorsport for this year’s British Touring Car Championship – Nurishment’s first motorsport collaboration. As part of the agreement, Nurishment branding will feature prominently on Speedworks’ Toyota Avensis, driven by rising BTCC star Tom Ingram (pictured). In addition, the brand will benefit from race-day sampling, social media activity, trade and consumer hospitality and use CCM of Speedworks’ drivers as brand ambassadors.
For further information: Dairy Crest (01372) 472200 FrieslandCampina (01403) 273273 Grace Foods UK (01707) 322332 Mars Chocolate Drinks & Treats (01753) 550055
[ CONFECTIONERY ]
Britain’s worst kept secret Ranked as one of the top foods people crave, chocolate has an enduring appeal unlike any other. A recent survey by Datamonitor shows Britons to be the chocoholics of Europe, accounting for nearly a third of the European market. Britain is also top of sugary sweet consumption – good news for wholesalers and retailers alike. onfectionery is a regular feature in almost every British household, whether in the form of sharing bags for family get-togethers or a secret stash of treats in a corner cupboard for late-night munchies. Females are often the biggest chocolate lovers, and while many people abstain from eating sugary products during Lent and post-seasonal dieting, the pleasures of consuming confectionery are often too strong to resist. Despite research linking high sugar consumption to the rise in obesity and diabetes, the chocolate confectionery market is worth over £3.6 billion nationwide, with chocolate bags currently growing by 6.6% year on year. Nearly one in six Brits eat chocolate every day, according to Mintel, with the average consumer munching their way through three bars a week. A quarter of adults surveyed by the British Heart Foundation even admitted that they found chocolate harder to give up than alcohol – and sex! A combination of colourful packaging, innovative flavour combinations and celebrity endorsements continue to entice even the most health-conscious consumer. Mondelez International accounts for a market-leading 36.2% of total chocolate value sales, driven by an assortment of new product developments and the rise of night-in sharing occasions. To continue its focus on category innovation, Mondelez introduced the first-ever chocolate tablet with a soft-centred flavoured filling last month. Cadbury Dairy Milk Puddles, which comes in Smooth Mint
All data unless otherwise stated: Nielsen
Did you know? The total confectionery market is worth more than £4.8 billion, with Mondelez International holding the biggest market share at 32.4%.
and Smooth Hazelnut variants, is available in both £1 price-marked and unpriced 90g tablets, retailing at around £1.49. The product, which can be purchased in outers of 18, will be supported by a £4 million marketing campaign in May, including TV, PR, out-of-home and digital activity. This follows the inclusion of a new 50p price point on countline packs of Cadbury Dairy Milk, Twirl, Wispa, Crunchie, Boost and Double Decker. The promotional bars, which are available in cases of 48, are designed to help retailers drive rate of sale on chocolate singles, which are worth 53% of the total chocolate category in independents and symbols.
A total of 54% of UK residents consider chocolate to be one of their most loved foods. (Canned Foods)
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[ CONFECTIONERY ]
Buyer’s view Darren Colledge, Hancocks 1. Which manufacturers are currently thriving within the confectionery market? “Ferrero and Lindt have both shown fantastic growth over the last few years. Ferrero continues to demonstrate excellent growth in kids’ confectionery and countlines, whilst Lindt is performing well in the boxed chocolates sector. We expect to see much of the same this year, in addition to £1 blocks and bags playing an increasingly important role in growing the chocolate category.” 2. Which NPDs have caught your eye so far this year? “Galaxy Salted Caramel looks like it will be strong addition for Mars, offering something a little unusual to confectionery, despite the flavour combination being widespread in other categories such as ice cream. Toffee Crisp Honeycomb has also been a great seller so far, offering a twist on a classic product.” 3. What kind of merchandising strategies should cash & carries look to implement to maximise sales? “Trying to get retailers to deviate from their list is key. Clear pricing, prominent displays and promotions will help to capture maximum impulse purchase, ensuring that retailers are encouraged to try new and different ideas. At Hancocks, we’ve recently refreshed our point of sale in all depots to promote our long-established Kingsway brand in a lively way. This is certainly having a positive impact on sales.”
All data unless otherwise stated: him!
Top 10 countline brands by value sales in independents and symbols (Nielsen) 1
Snickers Duo Kingsize Bar
Kinder Bueno Classic
Kit Kat Original 4 Finger
Cadbury Double Decker
Mars Duo Kingsize Bar
Susan Nash, trade communications manager at Mondelez, comments: “Confectionery is an appropriate range for PMPs as it is such an impulsive category – 97% of chocolate singles consumers would buy a PMP, and most plan to buy more or the same amounts,” says Nash. PMPs also rank as the number one promotional mechanic desired by retailers, according to him!, with 60% of store owners following a set routine when they shop for confectionery in depot. Mars Chocolate recommends locating popular lines at both ends of the fixture to help drive retailers down the aisle. These should be supplemented by a mixture of PoS displays to maximise disruption, with best-sellers placed at the bottom of shelves to make pallet replenishment easier, thereby avoiding ‘off sale’ issues. “One in four retailers buy on impulse at depots, with promotions identified as a key factor in encouraging retailers to make an impulse purchase and buy something off list,” says Bep Dhaliwal, trade communications manager at Mars. “The number one frustration for retailers in depot is poor availability, so it’s key to ensure that all popular lines are prominently displayed and fully stocked.” Delivered wholesalers should also follow a similar protocol, claims Dhaliwal, with products listed by manufacturer, followed by category type and value sales. Profit-on-return information, as well as a designated NPD section, will help to simplify the shopping experience. Nearly half of all delivered wholesale customers follow a pre-determined list to make their orders. Mars has recently revamped its M&M’s portfolio by releasing special-edition packs of Peanut, Chocolate and Crispy. Featuring on singles, big bag, treat bag, pouches and sharing bags, the promotion publicises the brand’s character election campaign, calling for the public to vote for their favourite M&M’s character – Ms Brown, Red or Yellow. The characters, which rallied for votes at M&M’s World London launch event earlier this month, will feature prominently on TV, press, radio and social media channels in the lead up to the General Election vote on 7 May. To support the campaign, M&M’s will also benefit from an £8 million investment throughout 2015, with bespoke instore PoS material available for retailers. Nestlé Confectionery has also unveiled a new on-pack promotion across selected impulse lines, including Rowntrees Fruit Pastilles, Aero Milk, Aero Peppermint and Toffee Crisp.
[ CONFECTIONERY ] Available exclusively for the wholesale and convenience channel, a ‘two for £1‘ pricemark is displayed across all four confectionery packs, as well as Kit Kat 4 Finger Milk and Kit Kat Chunky Milk. Despite the prominence of PMPs, Ferrero highlights confectionery as one of the few categories where consumers are willing to trade up to more premium treats that deliver the full value equation. Recent Shopper Intelligence research revealed that among 140 categories tested across FMCG brands, boxed chocolates scores number one for ‘emotional engagement’ and number two for ‘importance for innovation’. “Premium treats for self-indulgence have become an incredibly important trend for retailers,” explains Levi Boorer, customer development director at Ferrero. “Shoppers are refusing to compromise on their favourite brands and are trading up from lower value sectors of confectionery, like twistwraps, into more premium boxed chocolates, such as Ferrero Rocher.” Since Ferrero Golden Gallery was launched in September 2014, the premium assortment range has become the second largest contributor to growth within the assorted boxed category, delivering £1.5 million sales in less than six months (Nielsen). To tap into the bitesize confectionery market, which represents one-fifth of the total category, Ferrero has recently expanded its Kinder brand by releasing six new Chocolate Bags. The bitesize selection, which comprises Kinder ChocoBons, Kinder Chocolate Mini and Kinder Chocolate with Cereals Mini variants, is presented in both single-serve and large sharing bags, retailing at around 54p and £1.55 respectively.
Sugary satisfaction Valued at £1.34 billion, the sugar confectionery market continues to enjoy substantial growth, with Wrigley’s fruit-based confectionery posting a 22% uplift in revenue since 2010. To build on the success of Starburst FaveReds, which was ranked as the second biggest NPD launch in 2014, Wrigley has unveiled an on-pack promotion to publicise the brand’s new partnership with Teenage Cancer Trust. Featuring on Starburst Original 45g sticks, Starburst Original 165g and 192g sharing bags and Starburst FaveReds 165g bags, the promotion will entail a donation being made to the charity with every special pack sold. The packs, which display a Teenage Cancer Trust promotional design, will be distributed until the end of May, with Starburst pledging a minimum £200,000 donation through the cause-related marketing initiative. At the same time, the Starburst ‘Land of Intensity’ advertising campaign will be back on TV from 20 April until 17 May, as part of a multi-million-pound investment for 2015. Elsewhere, Wrigley has announced a new taste formula and packaging redesign for Extra, the number one gum brand, to encourage consumers to ‘Eat, Drink, Chew’ as part of their daily dental routine. The new visual identity, which reinforces the brand’s oral care credentials to a global audience, is displayed across the entire portfolio, while the product reformulation has been applied to Extra Peppermint, Extra Spearmint and Extra Cool Breeze. Julio Guijarro, marketing director at Wrigley UK & Ireland, comments: “Gum is a hugely impulsive category, as 50% of shoppers who see gum buy it (TNS). Therefore, visibility is key to driving sales.”
Wrigley’s top tips a
All data unless otherwise stated: Nielsen
Keep to your recommended planogram. This has been designed with your local customer base in mind. Your supplier representatives will advise you on the bestselling brands in your region. Stay up to date with the latest developments and market trends. Use the right price promotions and PoS to support new products in depot and capitalise on early demand. Maximise space to increase cash flow. Reduce your stockholding of slower moving brands and ensure premium presence for your top 10 selling SKUs. Make your depot a pleasant environment by ensuring your confectionery area is kept neat and tidy. Your customers are shoppers too and by making it easier to navigate with clear signage, you will enhance their shopping experience. Strive to deliver knowledge to your retail customer base to maintain loyalty. By acting as a support network, you can help retailers to build their expertise.
Top 10 sharing bags by value sales (Nielsen) 1
Cadbury Dairy Milk Giant Buttons (100g)
Haribo Starmix (250g)
Haribo Tangfastics (250g)
Haribo Starmix (160g)
Maynards Wine Gums (130g)
Cadbury Chocolate Eclairs (130g)
Haribo Tangfastics (160g)
Galaxy Minstrels (105g)
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[ CONFECTIONERY ]
All data unless otherwise stated: Nielsen
Top 10 pocket candy brands by value sales (Nielsen) 1
Trebor Extra Strong Peppermint (41.3g)
Trebor Softmints Spearmint (44.8g)
Rowntrees Fruit Pastilles Original (52.5g)
Trebor Softmints Peppermint (44.8g)
Polo Mints Original (34g)
Skittles Original (55g)
Halls Soothers Blackcurrant (45g)
Maynards Wine Gums (52g)
Lockets Honey & Lemon Original (43g)
Halls Mentholyptus Extra Strong (33.5g)
The programme is supplemented by a £15 million marketing spend for 2015, including a 40-week TV campaign and a four-week investment in trade and shopper marketing activity, which begins next month. The launch will be communicated to consumers from the middle of May, as part of the National Smile month, the UK’s largest and longest running oral health campaign, of which Wrigley is a platinum sponsor for a third consecutive year. With gums and jellies accounting for 45% of total confectionery sales, Swizzels urges wholesalers to tap into the growth of larger sharing bags. Products over 100g are experiencing a 5% uplift in sales year on year. Valued at £593 million, kids’ confectionery represents the biggest category in the sugar confectionery market, with sharing bags fuelling four-fifths of the sub-sector’s 2% growth in convenience (IRI). Approximately one in three variety bags are sold in convenience stores, with nine of the top 10 packs attributed to Swizzels brands. Sarah-Louise Heslop, marketing manager at Swizzels, reports that a bag of Squashies is now sold every 2.6
seconds on average, while £1 Loadsa bags are experiencing 20% year-on-year growth and are undergoing a pack redesign. To capitalise on Drumstick value sales tripling over the last two years, Swizzels has recently expanded its Squashies range by adding a Drumstick Squashies Sour Cherry and Apple variant. This coincides with the release of Drumstick Bubblegum Lolly (10p) and a Mega Bubblegum Drumstick Lolly (30p) into the cash & carry channel for the first time. Elsewhere, Nestlé Professional has pioneered a selection of individually wrapped Polo sweets, specifically for the complimentary confectionery market. Available in Clear Mint and five fruit flavours – Blackcurrant, Orange, Lemon, Lime and Strawberry – the single packs are ideal for a range of hospitality situations, from an after-dinner refreshment to a welcome invite. Wholesalers and cash & carries can purchase cases of 6 x 660g bags, each containing approximately 320 sweets. Not to be outdone, Mondelez has announced a nine-week TV campaign for Trebor, the UK’s number one mint brand. Supported by radio and PR activity, the initiative starts on 20 April and “encourages shoppers to pick up a pack by highlighting Trebor’s taste and heritage in mints”, says Elena CCM Mallo, senior brand manager.
For further information: Ferrero (01923) 690300 Mars Chocolate UK (01753) 550055 Mondelez International (08702) 400861 Nestlé Confectionery 020-8686 3333 Nestlé Professional (0800) 745845 Swizzels (01663) 744144 Wrigley (01189) 317030
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[ HOT BEVERAGES ]
Brewing up extra sales Perceived by many as a daily necessity, rather than a luxury, hot beverage consumption has reached unparalleled heights in recent years. The emergence of the coffee shop culture has revolutionised the category and, with traditional tea sales dwindling, retail stores are now revising their fixtures to reflect out-of-home experiences. Michael Catling reports. ince Starbucks diversified into the UK market nearly two decades ago, buying hot beverages out of home has become a ritualistic tradition for many British consumers. In scenes reminiscent from Friends, London’s cosmopolitan lifestyle and multicultural attraction have paved the way for several bespoke coffee shops, with many budding entrepreneurs tapping into the evolving cafe culture. Last year, the UK coffee shop market delivered £7.2 billion in revenue, according to Nielsen, up 10.7% versus 2013. This trend shows no signs of abating, with the out-ofhome hot beverage market predicted to grow steadily over the next four years – exceeding 27,0000 outlets and £16.5 billion turnover by 2019. With artisan coffee houses jostling for premium positions on the high street alongside their branded rivals, British consumers now drink 42 million cups from coffee shops each week, and this is expected to reach 68 million by 2019. To help foodservice operators make sustainable choices, Nestlé Professional recently launched refill packs of Nescafé All data unless otherwise stated: Allegra
600g Original and Gold Blend – both of which contain 87% lighter packaging than Nescafé catering tins. “With the rise of ‘coffee connoisseurism’, coffee is no longer simply black or white. Consumers want value, and this is as much about origin, blend and ethics as it is about price,” says Lynn Little, Nescafé ingredients lead at Nestlé Professional. Meanwhile, Taylors of Harrogate expects the emergence of the coffee shop culture to drive sales of roast and ground coffee products in 2015, as more shoppers look to replicate their coffee shop experience in home. Boasting the top two roast and ground coffee SKUs in the filter/cafetiere category (IRI), Taylors of Harrogate is planning to trial new pack concepts in 2015, with the aim of taking advantage of untapped opportunities in the convenience channel. Douwe Egberts claims that the key to success is getting the brand, segment and format mix right on shelf, so that promotions do not play such a heavy factor in consumer decision making.
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[ HOT BEVERAGES ]
Douwe Egberts has announced a £5 million marketing spend for 2015, comprising TV, press and in-store support.
All data unless otherwise stated: Nielsen
Coffee craze fuelling growth To help cater for smooth, rich and functional coffee drinkers, Douwe Egberts recommends stocking a range of freeze-dried, granulated and functional products, such as Douwe Egberts Pure Gold, Kenco Really, Nescafé Gold Blend, Nescafe Original and Douwe Egberts Classic Roast 100g. Although micro-ground represents the fastest growing segment within impulse, freeze dried and granulated coffee products account for a combined 78% of total value sales. Douwe Egberts Pure Gold 95g represents the fastest growing SKU of the top 10 freeze dried products, up 34.3% in volume. Mondelez International advises wholesalers to tap into the growth of instant coffee products by stocking premium and super-premium brands, like Kenco and Carte Noire respectively. “Consumers desire a better quality drink, similar to that of their favourite coffee chain, while still enjoying the convenience of instant coffee,” claims Susan Nash, trade communications manager at Mondelez. Wholebean instant represents a key sub-segment of the hot beverages market and is valued at £67 million, up 31.4% year on year. “Wholesalers should look at cashing in on the premiumisation trend by stocking innovative wholebean instant products, such as Kenco Millicano,” says Nash. To help reinforce Kenco’s transparency and commitment to sustainability, Mondelez recently unveiled a new TV advertising campaign for the brand – Kenco’s longest burst of marketing activity since 2011. Running until the end of June, the advertising campaign promotes Kenco’s ‘Coffee Vs Gangs’ project, which provides young people in Honduras with the opportunity to train as coffee farmers.
Bidvest 3663 says that the growing trend for all-day dining has driven demand for high-quality coffee anywhere, anytime, with many non-specialist locations, such as petrol stations and shopping centres, exploring the viability of diversifying into the hot beverage market. In October last year, Bidvest 3663 launched a bespoke front-of-house coffee concept – ‘Beans & Steam’ – which enables operators to create their own coffee shop, without being locked into expensive franchise agreements. The package, which has been developed exclusively for its customer base, includes access to everything from premium coffee beans and branded cups to a variety of pack sizes and PoS material. Customers can also benefit from a full installation of the coffee machine, plus menu recommendations, coffee recipes and barista training. Catherine Hinchcliff, head of customer marketing at Bidvest 3663, explains: “We understand that establishments may be daunted by the prospect of working through the options of buying into a franchise or setting up and sourcing their own coffee offer. “Wholesalers can boost sales in this area by making it as easy as possible for customers to make the best selection. The simplest way to do this is to offer everything together – from coffee, tea and chocolate to cups, lids and stirrers all in one place.”
Trendy teas: a twist on the tradition Despite the growing popularity of coffee, tea remains the second most consumed drink after tap water in Britain, with as many as 165 million cups consumed every day. “Tea is purchased by 90% of households, so it’s a key distress and top-up item in convenience stores (Kantar),” says Nick Widdowson, Partners for Growth and Unilever UK range and merchandising manager. “However, tea tastes have evolved in recent years, with many people introducing fruit & herbal, speciality or green tea into their repertoire. A successful tea fixture should reflect these changes, with the best-selling lines faced proportional to store size and location.” Tata Global Beverages has warned wholesalers that they risk throwing profits away by pushing tea down their list of priorities.
OFFICIAL BREW OF ENGLAND CRICKET
[ HOT BEVERAGES ] Unilever Partners for Growth merchandising top tips a
Tetley will benefit from a £13 million brand support programme for 2015, comprising TV, print advertising, social media activity, product sampling and in-store support.
All data unless otherwise stated: Nielsen
Although tea continues to rank as an everyday essential buy, the overall category has suffered a decline in revenue in 2014, fuelled by a 8.5% fall in black tea sales in the convenience channel. Part of this decline is due to the growth of redbush, decaf and green teas, with the latter sub-segment experiencing a 20.9% rise in volume and a 35.8% uplift in value. Approximately a quarter of households now buy fruit and herbal teas, with specialities such as chai lattes engaging younger consumers who look for more variety. Meanwhile, premium brands continue to gain traction with older shoppers, who are increasingly prepared to trade up and pay extra for added benefits. Tata Global Beverages recommends devoting significant shelf space to The Blend Collection – an umbrella brand comprising Tetley Extra Strong, Tetley Blend of Both and Tetley Kenyan Gold. Devised to tap into the 7.3% year-on-year growth of premium teas in the convenience channel, The Blend Collection encourages shoppers to increase their spend and try varieties of teas above and beyond their normal purchase. “If wholesalers and retailers are to make bigger profits from tea sales, then changes need to be made to how they are sold,” says Brett Grimshaw, business sector controller for convenience and out of home at Tetley. Tata Global Beverages says that undertaking a simple review of the tea category can make a real difference for
Divide your fixture into product groups. Keep your fixtures neat, tidy and separated into the four product groups – normal, fruit & herbal, green and speciality. Stock the best-selling lines. As normal tea represents 81% of sales in convenience stores, we recommend you focus on this area primarily. If you have space and your shopper profile supports it, stock the top sellers in other sub-categories, such as fruit & herbal, green, speciality and decaffeinated. Give the most space to the top-selling brands. Tea shoppers are brand-loyal and would rather choose a larger pack of their favourite brand than switch to an alternative. Allow for regional differences when putting your range together: London and southern England over-trades in the smaller tea sectors of fruit & herbal, green and speciality, whilst northern regions have the strongest share in normal tea.
wholesalers and remove any ambiguities for retailers. As a result, wholesalers are advised to block brand products together and to highlight shelf-ready packs and pallets which offer better visibility. Displaying key product information, such as tasting notes and retail margin to be made on each unit sold at rsp, will also help to communicate the different sectors of the tea market. “A good understanding of your customers’ markets will help you to plan how much space to give to different formats,” says Grimshaw. “It is important to remember that smaller packs like 40s are the big sellers in smaller grocery stores. Although bigger packs like 80s, 160s and 240s offer a great opportunity to upsell, you need to think carefully about what your local market needs.” He continues: “For the catering arena, foodservice operators are becoming a more proactive group, and priority packs now include 1100s and 440s.” Meanwhile, Taylors of Harrogate recommends changing promotions and introducing new products regularly to keep the category fluid and up to date. Trading controller John Sutcliffe comments: “If some retailers only purchase on promotion, then make sure that the promotions are staggered, changing them every two to three weeks. Too many products on promotion can confuse the shopper and create a value decline in the category.
[ HOT BEVERAGES ] convenience stores, to take advantage of their popularity at consumer level.” Mondelez reports that Cadbury Wispa Hot Chocolate has outsold any hot chocolate NPD in the last three years (Nielsen), with 78% of volume sales incremental to the hot chocolate category (Kantar).
Adding a finishing touch
Hot chocolate has gained market share in the coffee shop and café segment at breakfast, according to research by Allegra, with customers increasingly choosing a sweeter and more indulgent alternative to coffee and tea. In retail, hot chocolate and malted drinks posted an annual sales value of over £138 million last year. Representing 75% of the category, hot chocolate remains extremely popular, with instant hot chocolate proving high on the consumer agenda (IRI). “Innovation and variety through new products are key factors in maximising hot chocolate sales,” maintains Michelle Frost, general manager of Mars Chocolate Drinks & Treats. “Having a complete range, which brings together a strong brand and captivating products, offers an attention-grabbing mix for retailers.” To expand its portfolio of hot chocolate pouches, Mars has introduced White Maltesers and Chocolate M&M’s (rsp £1.99). Packed in seven-serving packs, both variants contain chocolate pieces and can be made by adding hot milk or water. Similarly, Mondelez has revamped its Cadbury Hot Chocolate PMP portfolio by introducing new contemporary packaging across the range, which includes drinking chocolate, instant chocolate and Highlights. Case sizes have also been reduced from 12 to six, making the range ideal for retailers with limited space. Trade communications manager Susan Nash comments: “Wholesalers need to ensure they stock key lines such as Cadbury, the top-selling brand for
DaVinci Gourmet advises wholesalers to stock a core range of flavour syrups, particularly vanilla, caramel, hazelnut and gingerbread, which appeal to consumers’ more explorative taste preferences. From hotels and restaurants through to retail outlets and train stations, customers now expect speciality beverages to be served in a variety of locations – not just coffee shops – and cash & carries/delivered wholesalers can capitalise on this demand. “Consumers are no longer satisfied with the generic black or milky coffee and, as a result, flavouring syrups are driving growth throughout the hot beverage category,” Steph Goldie, brand manager for DaVinci Gourmet, told Cash & Carry Management. “Across the UK, a third of millennials are put off by the bitter taste of unflavoured coffee. Wholesalers should not only stock on-trend flavours to allow personalisation for coffee-based drinks, but additionally ensure they offer an indulgent alternative.” Goldie continues: “Artisanal hot chocolate has become more popular in recent years, and by stocking products that allow operators to create their own exciting recipes, wholesalers will capitalise on this growing sector, and help their foodservice customers enjoy large profit margins.” DaVinci Gourmet urges wholesalers to encourage caterers to take advantage of extensive PoS materials, ranging from table talkers to recipe books, to help stimulate demand CCM from customers.
All data unless otherwise stated: Nielsen
“The UK tea market is primarily in black tea, so ensure you stock the best-sellers, including Yorkshire Tea, PG and Tetley.” Taylors of Harrogate has pledged to increase its wholesaler engagement in 2015, with more in-store activity and a £3.2 million above-the-line investment in Yorkshire Tea over the next 18 months.
For further information: Da Vinci Gourmet (01784) 430777 Douwe Egberts (0800) 470 8031 Mars Chocolate Drinks & Treats (01753) 550055 Mondelez International (0870) 240 0861 Nestlé Professional (0800) 745845 Taylors of Harrogate (01423) 814000 Tata Global Beverages 020-8338 4000 Unilever Partners for Growth (0800) 731 1597
[ PRODUCTS & PROMOTIONS ]
Promotional push set to widen Irn-Bru’s reach PRODUCT OF THE MONTH
AG Barr has announced a £6 million marketing spend for Irn-Bru, the UK’s number one flavoured carbonate brand. The wide-ranging marketing drive will be spearheaded by a three-month national TV campaign, which breaks on 17 April. The two 30-second TV commercials, which are part of the hugely popular Irn-Bru ‘Gets You Through’ campaign, will be supplemented by extensive digital, social media and PR activity. Adrian Troy, head of marketing at AG Barr, commented: “The adverts reflect the cheeky, maverick attitude for which Irn-Bru is well-loved and reinforce the message that whatever life throws at you, IrnBru ‘Gets You Through’. “‘Gets You Through’ advertising has generated over 10 million YouTube views and has been a major factor in Irn-Bru growing by 14% in the North of England.” Cash & carries will also be able to access a whole suite of Irn-Bru branded PoS material, ranging from
More refreshment shelf talkers and posters to pallet displays and shrouds. AG Barr’s latest outlay follows the announcement that Irn-Bru has become the official soft drink partner of The Football League. The three-year deal, which is designed to drive brand awareness, loyalty and social currency, involves links with all 72 clubs across the Sky Bet Championship, League One and League Two. The partnership will kick off during this year’s Play-Offs, with advertisements featuring on the giant screen and LED perimeter boards, and also in every matchday programme. a AG Barr (01204) 664295
All data unless otherwise stated: Nielsen
Schweppes undergoes major facelift Coca-Cola Enterprises has invested heavily in its leading mixers brand, Schweppes, with the launch of an innovative range, a new brand proposition and an advertising campaign aimed at a younger adult audience. Comprising Grapefruit & Blood Orange, Orange & Cranberry and Lemon & Elderflower flavours, the low-calorie sparkling juice drinks are available in 750ml bottles and 330ml cans, with an rsp of £2 and 79p respectively. Designed to cater for sophisticated palates, 50
the product launch is backed by instore sampling, retailer events and a PR and marketing push. This correlates with a new multimillion-pound advertising investment, which sees the brand adopt a witty, youthful tone of voice: ‘Separating men from boys, separating women from girls’. The campaign will run from the end of April across video on demand, cinema, digital and outdoor media, reaching an estimated 90% of the GB adult population. a Coca-Cola Enterprises (0845) 722 7222
Diageo has unveiled a raft of new product innovations across its portfolio of brands, including Pimm’s, Smirnoff and Gordon’s. Following the launch of Pimm’s Strawberry with a Hint of Mint last month (rsp £11.99), Diageo has further extended its portfolio by introducing Pimm’s Cider Cup – a blend of strawberry and cucumber flavours in a 500ml bottle (rsp £2.29). The brand has also diversified into the frozen drinks category by releasing its first frozen pouch range. Pimm’s Summer Crush replicates the same taste profile as Pimm’s Cider Cup and is joined on shelf by Gordon’s Frozen Cooler – a frozen pouch product flavoured with Apple & Elderflower. Both variants, which come in 250ml packs and have an rsp of £3, will also benefit from a £1.1 million above-theline campaign during the summer, featuring PR, digital and event activity. Elsewhere, luxury vodka brand Ciroc, from Diageo Reserve, is now available in a new 70cl Pineapple variant (rsp £38), which currently ranks as the US number one vodka innovation by value over the past six months. This coincides with the release of Captain Morgan White Rum (700ml) and Guinness Golden Ale (500ml) – two premium additions which have an rsp of £17.29 and £2.29 respectively. To conclude its activity, Diageo has announced the release of Smirnoff Ice Double Black in Western Europe. Backed by a £1 million above-theline campaign, Smirnoff Ice Double Black is flavoured with guarana and comes in four-bottle packs (rsp £5) and single-serve cans (rsp £1.50). a Diageo 020-8978 6000
[ PRODUCTS & PROMOTIONS ]
Smaller case sizes
To capitalise on the trend for flavoured cider, which is growing by 31%, Heineken has reinvigorated its Bulmers range by launching the UK’s first blood orange variant. Bulmers Cider Zesty Blood Orange, which comes in a 586ml bottle at 4% abv, is backed by a multi-million-pound outdoor poster campaign. In addition, Heineken has released Desperados Red – the UK’s first-ever tequila flavoured beer with guarana and cachaça. Available in 3 x 330ml bottles (rsp £6.85), Desperados Red will benefit from a replicable marketing spend to Bulmers Cider Zesty Blood Orange. a Heineken 0131-528 1000
Burton’s Biscuit Company has made key changes to its best-selling Cadbury Fingers PMP range. The revamp includes a reduction in case sizes to 12 (from 24) for both Cadbury Fingers and Cadbury Fabulous Fingers, plus a packaging redesign across the entire portfolio. The move coincides with the introduction of ‘Swavoury’ Cadbury Fingers – a new sweet and savoury range. Available in Salted Caramel Crunch and Salted Peanut Crunch flavours, the range is supported by a £1 million marketing programme. The latter variant is also obtainable in £1.29 PMPs. a Burton’s Biscuit Company (01727) 899700
SHS Drinks has extended its WKD Original Blue proposition, the topselling variant of Britain’s biggest-selling RTD brand, by adding a new freeze pouch pack format. Supplied in shelf-ready outers of 9 x 250ml packs, the easily portable pouches have a novelty appeal amongst 18 to 24-year-old consumers and are available across all take-home sectors, retailing at around £2.50. The release, which is backed by a raft of social media activity, taps into the rising popularity of frozen pouches in retail outlets, with sales trebling from £5 million to £16 million between January 2013 and 2014. a SHS Drinks (01452) 378555
Following the launch of B&H into the value price segment last year, JTI has developed two King Size formats, designed to offer existing adult smokers affordable quality. Made using a blend of Virginia tobacco, B&H Blue King Size and Smooth Flavour King Size 18s have an rsp of £5.99 and respond to the growing trend towards value, which now accounts for over half of all cigarette sales in the UK. JTI also reports that sales of B&H Blue have been growing across all UK regions. a JTI (01932) 372000
Proctor & Gamble has unveiled a selection of limited-edition Head & Shoulders bottles, featuring exclusive illustrative designs and packaging to celebrate two of its signature variants. The new look Head & Shoulders Smooth & Silky and Head & Shoulders Colour Care variants are available in 250ml shampoo and 200ml conditioner formats, retailing at around £2.99. Manufactured using ZPT technology, both products provide up to 100% flake-free hair from the first wash for superior scalp care – the foundation for ‘great looking hair’, claims P&G. a Proctor & Gamble (01932) 896000
Britvic Soft Drinks has extended its Robinsons Fruit Shoot no-added-sugar range by introducing a new limitededition variant. Designed to add incremental growth to the kids’ soft drinks category, the new Peach & Mango flavour comes in single-serve bottles, in cases of 12 x 275ml (69p PMP and unpriced packs – rsp 85p) and 24 x 275ml (rsp 85p). Also available are four-packs and eight-packs of 200ml bottles, retailing at around £1.99 and £3.25 respectively. The new addition will be supported by in-store activation in June. a Britvic Soft Drinks (0845) 758 1781
All data unless otherwise stated: Nielsen
New Innovation from an Iconic Favourite
A Jammie Dodger for grown-ups with a sticky jammie ﬁlling at the heart of a golden baked biscuit
A £20M brand !*
ATL spend of over £2m in 2015
Stock up now...you know you want to! *Jammie Dodgers, Nielsen 52 WE to 03.01.15.