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SPOTLIGHT: ROGER SNELLING, MD OF Q CATERING

THE BUSINESS MAGAZINE FOR CASH & CARRY/DELIVERED WHOLESALERS

Bumper review!

Industry leaders come together at Cash & Carry Management’s AWARDS lunch

COMBINING RESOURCES Palmer and Harvey merges wholesale and van sales teams

Younus Sheikh takes the top accolade at the FWD Gold Medals

DECEMBER 2015


* For full T&C’s go to www.cadburycremeeggdepotcompetition.co.uk **Nielsen, Value Sales, Easter 2015


C ntents

December 2015

Merry Christmas and a happy New Year to all our readers 07 6

12

20

Landmark bolsters membership with Gilsons Foods.

Filshill marks 140th anniversary with new image and website.

Industry leaders honour top performers in wholesale.

ESSENTIALS 05 06 36 44 50

15

Editor’s Comment Industry News Achievers Products & Promotions Festive Fun Test your wholesale knowledge.

FEATURES 14

Spotlight featuring Roger Snelling, managing director of Q Catering Supplies.

15

AWARDS Winners Cash & Carry Management names the best suppliers, as voted for by our readers.

20

Special Report A comprehensive round-up from this year’s FWD Gold Medals.

Exclusive: Tom Gittins of Confex and Hilary Nithsdale of Today’s Wholesale Services share their views on fostering customer loyalty.

44

14

CATEGORY INSIGHT 22

Product of the month

Tobacco & Accessories

OPINION 34

Legal Advice How upcoming tobacco legislation could affect your business.

42

Employment Law Can redundancy be used to remove poor performers?

Roger Snelling talks hockey, holidays and family.

Sunmagic launches its first-ever range of fruit & veg smoothies.

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December 2015

03


[ EDITOR’S COMMENT ]

Switched on by television? here’s no such thing as bad publicity. Tell that to the families of criminals whose faces appear on the front pages of a national newspaper with lurid details of their offences! Much of the time, however, the saying rings true – or partially. Take the case of Rayburn Trading, the Manchesterbased wholesaler which, some months ago, was approached by the makers of The Apprentice asking whether it would like to take part in a future edition of the TV show, focusing on discount retailing in the giant Arndale Centre. It jumped at the opportunity, even though it was told that a rival in the city, DK Wholesale, had also been asked to appear. Some disruption to normal trading inevitably occurred, with cameramen following the would-be entrepreneurs around the depot as they discussed what to buy. Neither wholesaler had any say in what would actually be screened, but then this is the norm for reality programmes such as this. Come the day (18 November), along with millions of other viewers, the Rayburn and DK Wholesale directors tuned in to see just what The Apprentice producers had retained in the hour-long programme and whether Lord Sugar would be saying nice things about them. As it turned out, apart from a few scenes inside the depots, there was little

T

SPOTLIGHT: ROGER SNELLING, MD OF Q CATERING

Bumper review!

COMBINING RESOURCES Palmer and Harvey merges wholesale and van sales teams

to identify the operators. And neither of the names was mentioned. DK Wholesale, however, had the satisfaction of seeing its moniker appear a couple of times when the camera focused on the building’s exterior. Rayburn was not so lucky, although those in the know would have spotted director Howard Goldman in one shot. So was it all worth it? Both companies said yes, they would have taken part even if they knew in advance what the outcome would be. Goldman told Cash & Carry Management that the company would have appreciated more air time and more branding. He “really enjoyed the whole experience” and was delighted to see how one of his favourite shows was put together. Rayburn took countless telephone calls following the screening and signed up many new customers. DK Wholesale sales director Ashok Shah also said the operator would have welcomed greater coverage, although he was anxious to point out that one ‘sleeping’ customer in Ireland, which had not been in touch with the wholesaler for three years, rang up and placed a sizeable order after seeing the programme. So how would the two operators have rated the publicity? Reading between the lines, probably around six out of 10.

Mervyn Gilbert News Editor

NEVER MISS AN ISSUE... Cash & Carry Management is free to cash & carry and delivered wholesale directors, buyers and managers. The magazine is available to other subscribers for just £58 a year or £6 per copy. Overseas yearly subscriptions are priced at £85. Back issues dating back to 2011 are available online. Email mail.winlove@btconnect.com or call (01342) 712100 for more information.

Address Winlove Publications Ltd PO Box 366 East Grinstead RH19 4ZE Tel (01342) 712100 Email mail.winlove@btconnect.com 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 4,574 July 2014 – June 2015 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 Santa image thanks to Recon Cycles.

THREE WAYS TO GET INVOLVED THIS MONTH 1. ONLINE Catch up on all the latest news via our relaunched website, plus take advantage of our Promo Checker service, exclusively for suppliers, and our online magazine edition. cashandcarrymanagement.co.uk

2. LINKEDIN Get involved on our official page and share your views on all the issues affecting the industry.

3. TWITTER Follow us for breaking news and announcements on all the products hitting the trade in early 2016. @CandCManagement

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December 2015

05


[ INDUSTRY NEWS ]

Bangor switch Blakemore Wholesale has moved its cash & carry location in Bangor, Gwynedd, from Caernarfon Road to improved facilities on the Llandegal Industrial Estate. Under existing general manager Allan Jones, the new 41,000 sq ft branch has several enhanced features, including a large range of Chinese foods, a click & collect service, improved delivery, fresh meat and produce departments, fruit & veg area (with produce delivered to the depot twice daily) as well as larger grocery, catering and non-food sections.

The former 28,000 sq ft building had operated as a cash & carry since 1972, originally as John Edwards (Wholesale Grocers) and from 2002 as Blakemore after it was taken over by that company. a Blakemore Wholesale (01902) 371515

Consultancy Ex-drinks industry executive Scott MacDonald has launched a consultancy to help suppliers better their understanding of the needs of route-to-market customers, and vice versa. MacDonald, formerly with Anheuser-Busch InBev, is operating as 1-2-1 Business Solutions. His clients include Dundee-based CJ Lang & Son and JW Filshill. a 1-2-1 Business Solutions (07898) 096418 06

December 2015

Teams combine Palmer and Harvey is merging its wholesale and direct van sales teams, which it claims will bring benefits to independents. Until now, the wholesale structure has enabled retailers to order from a range of more than 12,000 SKUs delivered to their store and unpacked by the driver. The direct van sales format has provided what the company describes as ‘a mobile cash & carry service’ for high demand, essential items. Van sales reps have been providing category and merchandising advice. P&H managing director wholesale Martin Ward told Cash & Carry Management that the new single sales force would combine the benefits of pre-ordering

multi-temperature products with the ‘flexible and immediate’ van sales service. He added: “The current structure has allowed a certain degree of duplication in having two sales operations, which often overlap. “The new structure, which came into force this month, allows one single point of contact for our valued independent retailers,” he explained. “It will enable us to offer a more comprehensive service, which is superior and different to that offered by our competitors.” Ward said that retailers would have access to a sales force that numbers more than 300. a Palmer and Harvey (01273) 222100

‘A legend’ David Urquhart (above), former managing director of Gordon & MacPhail, has died after losing his battle with cancer. He was 63. Described as a “legendary figure in the whisky industry”, Urquhart helped develop the family firm into what is widely regarded as the world’s leading malt whisky specialist. Latterly, he played a key role in boosting Moray’s tourist economy as a founder of the annual Piping At Forres extravaganza.

Top apprentices honoured Eighteen ‘up and coming’ youngsters, chosen from among 6,000 working in C&C/wholesale, received certificates and cash towards their training at a ceremony arranged by the Federation of Wholesale Distributors and held in the House of Commons. They were presented by MP Nadhim Zahawi, cochairman of the Apprenticeship Delivery Board and the Prime Minister’s advisor on apprenticeships. Also attending were MPs representing the winners’ constituencies. FWD chief executive James Bielby said: “Our members are fostering and developing talent and investing a lot of money in very skilled individuals to make sure they are prepared for the future.” The winning apprentices

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FWD council member Steve Parfett (left), apprentice Nicky Stretton and Nigel Mills MP (Amber Valley).

were: from Booker – Jamie Morris (Gloucester), Emma Hindle (Burnley), David Willoughby (Sunbury) and Luke Ellingworth (Trowbridge); Today’s Group central office – Rebecca Wells and Michelle McKean; East End Foods – Muneeb Mahadik, Hatif Iqbal and Ryan Cuff; Parfetts – Nicky Stretton (Somercotes),

Jordan Hodgson (Halifax), Joseph Peters and Tom McGlinchey (both Stockport); Palmer & Harvey Leeds – Lauren Huckle; Country Range Group head office – Jack Brooks; and Blakemore – Ben Hilton (Willenhall), Jamie Daniels and Callum McCombs (both Jamesbridge). a FWD (01323) 724952


[ INDUSTRY NEWS ]

Hyperama is third-time victor Hyperama, for the third time running, was judged member of the year at Landmark Wholesale’s annual awards event, which took place in Cardiff. And for good measure, the company’s West Bromwich branch won the prize for best large C&C. An innovation this year saw Tim Cronin, of Blakemore Wholesale’s Middlesbrough C&C, take the award for best depot execution team leader. The rest of the awards: a Most improved member: East End Foods. a Small cash & carry: Parfetts, Halifax. a Retail business development: Blakemore Wholesale. a Catering development: Parfetts. a Suppliers’ depot: Parfetts, Stockport. a Own-brand: Blakemore Wholesale, Wolverhampton.

Andy Whitworth (centre), operations director of Parfetts, receives the award on behalf of the company’s Halifax C&C from group managing director Martin Williams (left). Also pictured is group finance director Andrew Thewlis.

Foodservice delivered depot: Blakemore Wholesale, Penrith. a Business partner/impulse supplier; business development partner; and most improved partner: Mars Chocolate. a Business partner and new supplier: Red Bull. a Caterer connections supplier: Premier Foodservice. a Grocery supplier: Premier Foods. a Tobacco/licensed partner: Heineken UK. a Most improved supplier: a

Silver Spoon. a Soft drinks supplier: Mulrines. connections a Caterer impulse supplier: KP Snacks. a Non-food supplier: Robinson Young. a Chilled/frozen supplier: The Cheese Warehouse. a Ambient food supplier: Unilever Food Solutions. a Licensed supplier: Diageo GB. a Central office employee: John Farrell. a Landmark Wholesale (01908) 255300

Leicester ‘clash’ forces move Leicester wholesaler Gilsons Foods has taken the step of switching groups because of its proximity to Dhamecha’s latest branch. A family-owned business, Gilsons Foods had been a member of Today’s Group since the C&C/wholesaler started trading in 1991. However, when Dhamecha, that group’s leading C&C member, opened “round the corner”, it decided that it was in its best interests to change allegiance and switch to Landmark Wholesale. The company, which operates from a 20,000 sq ft depot, is headed by managing director T (Tara Singh) Gill. Cash & carry accounts for

85% of its £14 million turnover and delivered trading the remainder. The product range includes grocery, licensed goods and tobacco. Commenting on the new member, Landmark’s managing director Martin Williams said: “Gilsons is highly respected, with a

fantastic track record locally.” Gilsons is Landmark’s third new member this year. The others are Bournemouth-based Country Fare and north London operator Esin Cash & Carry (EDA Quality Foods). a Gilsons Foods (0116) 262 9959

Today’s Group retail director John Kinney with van winner Kulasekaram Kasinaihan.

Winning quartet Three Today’s Group retail customers won cash prizes totalling £20,000, and another a £20,000 van, following the Checkout Mania 2015 trade event day. The awards were made at the group’s Doncaster headquarters. Winner of the van was Kulasekaram Kasinaihan, who shops at Dee Bee C&C in Grimsby. Mukesh Patel, who trades as The Candy Box and who buys from Goldstar Wholesale, of Harrow, north London, received the top cash prize of £10,000. Kuhanathan Lavi, of Newsagent & Convenience Store – a customer of Elbrook C&C, of Mitcham, Surrey – won £5,000, as did Angela Stewart, of Village News, who is registered with Davidson C&C in Airdrie. a Today’s Group (0844) 247 0700

High scoring GroceryAid’s Sporting Heroes luncheon, held in London last month, raised more than £320,000. Over 850 people attended the event. a GroceryAid (08088) 021 122 www.cashandcarrymanagement.co.uk

December 2015

07


[ INDUSTRY NEWS ]

Landmark boardman Jay Suterwalla, a director of Southall-based Sutaka UK, which describes itself as ‘the UK’s leading distributor of branded food and household products’, has joined Landmark Wholesale’s board. He is the son of Siraj Suterwalla, a member of the family that owns another Landmark affiliate TRS, which has cash & carries in Southall and Leyton, east London. TRS also operates one of the UK’s leading ethnic foods businesses, TRS International Foods. It is represented on the Landmark board by Mansoor Suterwalla. a Landmark Wholesale (01908) 255300

Cosh goes Chris Cosh (below), procurement director of Scottish drinks wholesaler Wallaces TCB, has left the company after 27 years to pursue other, unspecified, interests. He and his family were instrumental in building the business ahead of its acquisition by C&C Group last year. Managing director of the company Alastair Campbell told Cash & Carry Management that until a successor has been named, the day-today contact at the company will be Gillian Murray, who is buyer & bonded warehouse manager. The licensed wholesaler operates from depots in Glasgow (Wellpark Brewery), Irvine, Dumfries and Kintore. a Wallaces TCB (01294) 203000 08

December 2015

Hull return after 25 years Today’s Group member Dee Bee has spent more than £500,000 on a new 70,000 sq ft Hull cash & carry, which is expected to create more than 35 full and part-time jobs. According to parent company the Ramsden Group, of Grimsby, the cash & carry will be similar in style to Dee Bee’s Grimsby unit, which has served customers across north-east Lincolnshire for 54 years. Group managing director Nick Ramsden said: “This is an exciting expansion for us, but there is some nostalgia linked to the move. We owned and operated a Dee Bee cash & carry on the Hull site 25 years ago.

“Since then, the property has been leased, but the leaseholder is moving to new, larger premises elsewhere in the city. “We would like to start recruitment early in the new year, but we must first agree a change of use clause with the City Council.” Ramsden added that the company had recently invested a further £1 million in the Dee Bee business (IT, new offices, vehicles and product handling). The Hull C&C will hold

around 6,000 products covering alcohol, confectionery, soft drinks, snacks, grocery and catering lines. Customers will include independent retailers, foodservice outlets, pubs and clubs. The company already services around 40 convenience stores and pubs in Hull, but Ramsden said the number would rise significantly in the first year of operation. a Dee Bee C&C (01472) 313 200

More than £2 million in rebates Bestway Wholesale’s ‘The Great Rebate’ promotion, which ran from April to September, has been described by the company as its most successful ever. It offered Bestway and Batleys customers the opportunity of gaining a minimum of 3% cashback on

purchases of best-selling products, in addition to impartial category management advice across the core channels in convenience. The campaign saw traders earn £1.34 million in rebates over the six-month period. Six lucky retailers

received Nissan VV200 vans. Coupled with the ‘My Rewards’ scheme for Bestone members, it means that the company has given back more than £2 million to customers since the beginning of the year. a Bestway Wholesale 0208453 1234

Record Easter confectionery Jonathan Summerly (right), purchasing director of Hancocks, says the specialist confectionery C&C operator, with over 5,000 products in its 20 branches, will be stocking its largest-ever Easter range. More than 20 new lines, dedicated to the ‘Happy Easter’ collection, will be available together with over 200 branded products. The selection will include

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chocolate bunnies, eggs and baskets, offering retailers margins of up to 49%.

Summerly commented: “Our Happy Easter range offers a point of difference compared to the multiples.” Among the new lines will be: Easter Jelly Pops (£4.99 per pack of 24, rsp 49p); Rabbit Droppings (£7.80, 12pack, £1 rsp); Milk Chocolate Easter Lollies (£9.75, packs of 27, 79p rsp); 1kg Easter Egg (£9.99, £19.99 rsp). a Hancocks Cash & Carry (01509) 230796


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[ INDUSTRY NEWS ]

Belle of the ball – again

Top retailer Bay Bashir (left) with Blakemore managing director Peter Blakemore.

Blakemore Wholesale’s annual retailer of the year grand awards evening and gala dinner, held in Burton upon Trent, saw 12 regional businesses being honoured and five category prizes being presented. Stores were judged on such criteria as internal and external standards, customer relationships, product range, merchandising and local community involvement. Judged best retailer for the third time, from among 650 entrants, was the Belle Vue convenience store in Middlesbrough, which carries the Lifestyle Express logo. The owner Bay Bashir received total prize money of £11,500 (£10,000 as overall winner and £1,500 in regional awards) plus £700 from Blakemore to be given to a charity of his choice. Total prize money on the night was £26,000. Blakemore Wholesale stores director Nick Rose said: “The awards demonstrate how suppliers, wholesalers and retailers can work together to showcase the best of what independent stores have to offer.” a Blakemore Wholesale (01902) 366066 10

December 2015

Carrying the message Brand advertising has begun appearing on the Palmer and Harvey vehicle fleet for the first time. The initiative, involving more than 1,400 trucks, will be rolled out over the coming months. Adverts, displayed on both sides of the vehicle, will be changed every three weeks to coincide with promotional periods. The first supplier to take advantage of the new scheme is Burton’s Biscuits with its Maryland brand. The company’s business manager for route to market

Ben Cooper said: “Partnering with the number one delivered wholesaler to the UK convenience market makes perfect sense for us. P&H lorries deliver to every postcode every day.” The wholesaler’s channel

marketing manager Simon Harris said that it would accept ads only from existing suppliers. a Palmer and Harvey (01273) 222100 a Burton’s Biscuits (01727) 899700

New board member for Fairway Roger Snelling, managing director of Q Catering, of Sittingbourne, Kent, has been elected to the board of Fairway Foodservice. Snelling (right), 58, has been in the foodservice trade for 35 years, beginning his career in 1979 with Dover Ship Stores, supplying cross-Channel ferries.

Having become MD, he left in 2003 to set up Q

Catering, which now has a turnover of £7 million, 35 staff and 600 delivery points. Last year the company completed a 6,000 sq ft extension to increase its frozen food range. It has been a Fairway member for almost two years. a Fairway Foodservice (01422) 319100

Irish wholesaler upgrades IT O’Reillys, of Newry, Northern Ireland, has installed an upgraded Swords wholesale distribution system from Sanderson, its many functions enabling the delivered wholesaler to increase service levels and sales channels. The company, which has a turnover of £30 million, supplies snacks and groceries to retailers and is a member of both Sugro and Today’s Group. O’Reillys first implemented Swords in 2011.

www.cashandcarrymanagement.co.uk

Now, by adding the latest system, it will benefit from high-speed processing and more user efficiencies, aimed at boosting productivity and reducing costs. The wholesaler has also upgraded its website. The new, fully-responsive and integrated solution from Sanderson is accessible by

any type of device and offers customers the convenience of 24-hour ordering. Features of the refreshed site include user-friendly graphical functionality and allergen information. O’Reillys, a family business established in 1959, supplies over 4,000 product lines to customers in Northern Ireland and the Republic of Ireland. a O’Reillys (028) 30 250 650 a Sanderson (0333) 123 1400


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[ INDUSTRY NEWS ]

More ties Showing a bit of Enterprise in football Bidvest Foodservice, which is a major sponsor of Sunderland FC (shirt advertising), has extended its football links in a deal with Tranmere Rovers through its Manchester depot.

On Sunderland shirts.

The new agreement involves the wholesaler being a teamsheet sponsor until the end of the season; it then has the option to renew in 2016-17. Bidvest field sales manager Joanne Rudkin said: “We are also supplying goods to Tranmere’s new conference and hospitality facility.” a Bidvest Foodservice (0370) 3663 000

Booze deals

Drinks wholesaler Matthew Clark, which was recently acquired by Conviviality, owner of the Wine Rack and Bargain Booze retail chains (Cash & Carry Management: September), has won several new ‘premium’ accounts. They include the Q Hotels group, the Conrad St James and Hilton Bankside London hotels, and, also in the capital, M Restaurants and the Berners Tavern. a Matthew Clark (0344) 822 3910 12

December 2015

Booker Group, including Makro, has entered into an arrangement with Enterprise Inns whereby the pub chain will be able to source a wide range of food and non-food from the C&C/wholesaler. Over 5,000 publicans can now visit the Booker website and use the online ordering platform. Items available include fresh meat (cut to order), fruit & veg, snacks, bakery, delicatessen, frozen food and dairy products. Among the non-food lines are catering utensils, disposables and cleaning and hygiene products. The chain of leased and tenanted pubs already uses Brakes as a major supplier, but a spokeswoman for the company dismissed a suggestion that Brakes is being replaced by Booker. She told Cash & Carry Management:

One of 200 branches likely to benefit.

“This deal just enhances our portfolio.” James Armitage, sales & marketing director of Enterprise, said: “We are delighted to have Booker and Makro on board to bolster our foodservice offer alongside our other providers. “It is a significant development which will bring huge benefits to our publicans’ business.” Also available through the wholesaler are recipes, with cost-per-portion suggested

selling prices and gross profit calculations. There is free delivery on all orders over £100 (ex-VAT). Booker Group catering director Stuart Hyslop said: “I am confident we have the choice, price and service to help Enterprise publicans increase sales and profits.” The C&C/wholesaler will be exhibiting at all six Enterprise trade shows over the coming year. a Booker (01933) 371000 a Enterprise Inns 0121-733 7700

Glasgow firm updates image JW Filshill, owner of the KeyStore convenience store brand and one of Scotland’s oldest food and drink wholesalers, has unveiled a new brand identity, vehicle livery and revamped website. Celebrating its 140th anniversary, the Glasgowbased Today’s Group member has invested heavily to change its image and marketing ‘to reflect the current challenging market place with increased competition and ongoing price-cutting’.

Managing director Simon Hannah (pictured) said: “We’re operating in a dynamic market that has seen

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much expansion over the last few years, with the larger supermarket chains opening smaller, more local stores. “If we are to maintain our market-leading position, we have to continue to innovate.” Filshill, a Sunday Times Top Track 250 company, which increased pre-tax

profit to £1.3 million in the year to 31 January (up from £800,000), also conducted market research on the company, involving staff, customers and consumers. Said Hannah: “This confirmed what we already know – our level of service is second to none. However, it also told us there is much room for improvement and no room for complacency.” According to the findings, a major Filshill strength is that it is a family business. It is also seen as a technological innovator. A community campaign, which has the slogan ‘We’ll Support You Ever More’, has been launched to strengthen awareness of the KeyStore brand. a JW Filshill 0141-883 7071


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[ SPOTLIGHT ]

sponsored by

Roger Snelling, managing director of Kent-based Q Catering Supplies parts that suit when receiving good information. If you were able to retire tomorrow, how would you spend your time? I wouldn’t like to retire completely as I’ve seen too many people go downhill very quickly afterwards. Some form of semi-retirement to play a bit more sport and give a lot more time back to the family and travel abroad would seem a good fit – in a few years’ time perhaps.

Making the best of an unfortunate situation What has been the major milestone or turning point of your career? Starting up Q Catering Supplies. Working in another person’s business can be financially rewarding but also frustrating if you aren’t able to influence the direction of movement. With your own business you might not be able to attain the same level of remuneration quite so quickly, but you stand or fall by your own decisions, albeit the wrong decision could bring complete disaster! Who has been the biggest inspiration to you? Most probably my father. By sheer hard work and commitment, he rose through the police force ranks to a senior position and dragged the family out of a pretty grim life based around the Chatham Dockyard. How do you maintain a work/life balance and how have developments in technology affected this? My wife would say I don’t! I played hockey for many years (pictured inset) with Canterbury, Kent and England Over 14

December 2015

40s, which dissipated a fair amount of pent-up work frustration. Golf has taken its place now, which probably adds to the frustration! The great thing with data communications is that you can still be in control of work events from anywhere in the world – a good excuse for more travel holidays! What most frustrates you in business (and in life generally)? Breakdown in communication. Some people never transmit properly, expecting their thoughts to be read by everyone else, whilst others only process the

What advice would you give someone starting his/her first job? Never say “that’s not my job”. Being flexible allows exposure to all aspects of the business from which you can form opinions – even though you shouldn’t be articulating them at this point! What type of business would you go into if it wasn’t C&C/wholesale? I don’t have a clue! I completed a degree in Business Studies because it gave a broad base to move off in many possible directions. I fell into the foodservice industry completely by accident when a teammate in my cricket team broke his leg badly and I took over his job delivering food to the cross-channel ferries. If you had a million pounds to invest in business, how would you spend the money? It’s people that make a successful business so I’d put my money behind a person or people capable of building a great team to take business forward. I wouldn’t put it all into one business CCM either!

Sailing off into the world of wholesale Roger Snelling, 58, began his foodservice career in 1979 as a driver for Dover Ship Stores, supplying the cross-channel ferry service. The business was acquired by James Burden (Holdings) in 1985 and was renamed Cavendish Ship Stores. Snelling rose through the ranks and was eventually

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made group managing director in 1997. Six years later he left to set up Q Catering. The company, which is a member of Fairway Foodservice, now has an annual turnover of £7 million and 600 service points across Kent and East Sussex. Last month, Snelling was elected onto the board of Fairway.


EXCLUSIVE AWARDS LUNCH: TOP SUPPLIERS RECOGNISED BY OUR READERS


[ AWARDS WINNERS ]

Loyalty and the C&C customer At Cash & Carry Management’s exclusive AWARDS lunch last month, guests heard about the factors that determine which brands and own-brand products customers buy. s there such a thing as loyalty among cash & carry/ wholesale shoppers? Or is it all about price? These were the questions that Kirsti Sharratt, managing editor of Cash & Carry Management, posed to guests as she set the scene for the magazine’s exclusive AWARDS lunch and business session, held last month at Danesfield House Hotel & Spa in Marlow, Bucks. When thinking about loyalty to different brands, a lot depends on the product category, as well as individual brand leaders, she pointed out. “It was in the mid-80s that the then Spar chairman John Irish declared that convenience trading was the only way forward, and that impulse, chilled, alcohol and food-to-go should take precedence over grocery. “Many wholesale bosses ultimately supported his view, with the result that wholesalers, and symbol and independent retailers, all but turned their backs on grocery. “And many grocery suppliers will concede that they didn’t fight very hard to maintain their presence in independent stores,” Sharratt added. “Their grocery brands didn’t lose the war to own-brand; they lost it to the multiples.” In recent years, the supplier community as a whole has fought back. “Of course, there are some companies that never gave up on supporting their brands in the independent sector – Nescafé and Tetley being good examples,” she said. Meanwhile, suppliers of impulse lines grasped the chance to secure more shelf space by making concerted efforts to give C&C/wholesale customers what they wanted and needed: a smaller packs and outers; a prices that allowed them to compete with the multiples. This included price-marked packs; a new products that were introduced, if not first in the independent sector, at least at the same time as in the multiples; a and hard-hitting on-pack promotions. But now, particularly in some categories, the market has become flooded with promotions, said Sharratt. “So what can suppliers do to make their brands stand out? Is it down

I

Hilary Nithsdale: ‘Big promotions and deep price cuts do not build brands or customer loyalty.’

16

December 2015

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CASH & CARRY INFLUENCERS

2015

2013

1

Closest to business

36%

40% (1st)

2

Staff helpfulness

28%

25% (6th)

3

Value for money

27%

34% (2nd)

4

Availability

26%

34% (3rd)

5

Acceptable pricing

24%

28% (4th)

Source: him! Sample size 2398 in 2015 and 2368 in 2013

to price? Is it about building visibility with huge displays? Is it about ‘Manager’s Specials’?” Hilary Nithsdale, trading controller – retail own-brands at Today’s Wholesale Services, addressed some of these questions during her presentation. In the UK at retail level, 56% of products are sold on deal, which is more than double the European average of 25.6% (IRI). “However, big promotions and deep price cuts do not build brands or customer loyalty,” she said. “We therefore need to drive a short-term behavioural change.” She praised a current added-value promotion, whereby the retailer receives a case of copper mugs free when buying two cases of Russian Standard Vodka. The consumer is then given one free mug with each bottle of the vodka purchased. Nithsdale noted that 62% of cash & carry customers’ weekly spend goes to one main cash & carry. However, cash & carry customers do use an average of 2.6 cash & carries, so there is movement between different operators. Despite all the promotional activity and POR activity, the highest reason for choice of cash & carry is that it is closest to the retailer’s business (him!). As regards loyalty to branded versus own-label lines, Nithsdale pointed out that there can be a huge price differential between a brand and its own-brand equivalent. “For example, Heinz Tomato Ketchup has a £2 recommended price point, while Aldi’s Ketchup costs 59p. And in foodservice, there is a 60% price differential between Heinz and Booker’s Chef’s Larder back-of-house products [pouring bottles] and 55% between Heinz and Lichfields front-ofhouse lines [sachets].” Own-brand accounts for 47% of sales in the UK, which is three times the world average. Convenience is not too far behind at 39%, Nithsdale added. “Own-brand is now seen as acceptable – it is no longer hidden at the bottom of the basket – and it is inexpensive and low risk. “Shoppers who buy own-brand have a basket spend 32% higher than those who don’t,” she reported. “The highest convenience demographic is ‘retired greys’ who account for 20% of the own-brand spend. And interestingly, shoppers in London are most likely to purchase own-brands. You would have thought that in London people would be more affluent and therefore less likely to buy own-brand.”


[ AWARDS WINNERS ]

Tom Gittins: ‘Brand loyalty is now perceived as an essential ingredient to the out-of-home eating experience.’

People are most likely to buy own-brand milk and produce, “which isn’t surprising as there is not much branded milk or produce”, she pointed out, and consumers are least likely to buy own-brand tea. They show least loyalty to the brand if the own-brand is of a high standard in crisps & snacks and confectionery. Nithsdale concluded with three key messages for wholesalers: “It is important to make it easy to shop the own-brand category; customers care about range, price, quality and packaging; and keep evolving the offer to make it relevant.” For Tom Gittins, business development manager at Confex, Star Wars is the ultimate brand. “What is it about Star Wars that makes it the most-loved film franchise of all time? Most of all, it is about a dedication to experience the brand, own the brand, even become the brand. This is what all brands are striving for – once you are hooked, they can roll out their values to give the consumer more of what they love about their brand, ” he said. He added that, although sustainable brands tend to move with the times while retaining their core values, some of the best-loved brands have remained steadfast. “They have an X Factor formula that is so perfect that the core driver of loyalty is nostalgia, along with the reassurance that everything will

always be as it always was. Is there not something timelessly reassuring about the Tunnock’s Tea Cake?” He pondered just how big these brands could be if further developed across more SKUs. “Who would have thought that making a KitKat chunkier and then adding peanut flavour would increase brand reach by over 50%?” During 2015, the foodservice sector has seen a sustained uplift in sales of high-end brands, reported Gittins. “As the economy recovers, consumer confidence has grown, with brand loyalty now perceived not just as affordable, but also as an essential ingredient to the out-of-home eating experience.” With the supply chain now more informed and more demanding, it is the power brands that have the resource to drive innovation to maintain market share, he argued. “Along with a tightening up of what goes into our food has come a transparency that runs through the whole food chain. The brands cannot hide but, in turn, this opens up opportunities for NPD – as seen this month with the launch of a gluten-free gravy by three global foodservice suppliers.” Gittins also highlighted the growing interest in provenance. “This has been great news for regional producers and smaller localised manufacturers, but has also been cleverly tapped into by the major brands. Provenance is not just about where the food is from, but also about which brand the food has been accompanied by or cooked or garnished with.” He commented: “Brands really do work within foodservice and are now being sold not just to the chef or dinner lady but throughout the supply chain, with the end user happy to pay more for the food that they can identify with.” Turning to promotions, Gittins noted: “There have been some aggressive pricing strategies from the major brands in the last 12 months in an effort to increase their market share. As a consequence, we have been seeing promotional pricing closer to (and in some cases beating) tertiary or own-brand product. This has given the wholesaler real teeth to be able to stock up and switch customers over to the brand.” He added: “I do believe that a focus of resource towards the wholesale foodservice sector is starting to see return on investment being able to outstrip the larger restaurant chains – mirroring the growth of convenience in the grocery sector.” CCM

‘We are always seeking ways to delight our customers unexpectedly’ Anthony Cox, general manager of Danesfield House Hotel & Spa, told the audience at Cash & Carry Management’s AWARDS lunch that recognising the hotel’s repeat guests is key to encouraging and retaining loyalty. “We have people who have come here for the Henley Regatta every year for the last 25 years, we have people who come here every Sunday for lunch, and for us it’s about recognising them. “We try to keep a comprehensive guest history through our booking systems, so that even if we have a new member of the team on reception, they will know who the guests are coming in that day and we will be aware of their preferences,” he explained.

“I also believe greatly in random acts of kindness. We like to look after our customers and we are always seeking ways to delight them unexpectedly,” he said. “This is getting easier with the advent of social media because we can profile our guests before they arrive. Building relationships with our guests is very important.” Although the hotel business has been tough during the last six or seven years, the luxury market, which includes Danesfield, is not about price, said Cox. “Our guests are looking for money-can’t-buy experiences, so for us it’s about raising the bar, giving them the very best and trying to keep them interested in coming back.”

www.cashandcarrymanagement.co.uk

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[ AWARDS WINNERS ]

Cash & Carry Management’s managing director Martin Lovell (second on left), managing editor Kirsti Sharratt (right) and deputy editor Michael Catling (left) with the award winners and guest speakers.

Mondelez takes top title Cash & Carry Management’s AWARDS lunch, which was held in the impressive setting of Danesfield House in Bucks, recognised suppliers for their outstanding service. The winner of the Top 10 Suppliers accolade, as judged by our readers, was Mondelez International. ‘Top 10 Suppliers 2015’ WINNER: Mondelez International

Accepting the top award from Cash & Carry Management’s managing director Martin Lovell (left) is Fin Coffey, customer development controller at Mondelez International.

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TOP 10 SUPPLIERS 2015 1

Mondelez International

2

Coca-Cola Enterprises

3

JTI

4

Nestlé

5

Imperial Tobacco

6

Britvic Soft Drinks

7

Mars

8

AG Barr

9

Lucozade Ribena Suntory

10

Heineken

“Winning this award is fantastic. Being voted for by Cash & Carry Management’s readers means more. There are some esteemed businesses in the Top 10 so we are really proud and pleased with this award. Listening to the customer, working with the customer – being very customer-centric – has helped, and hopefully that’s been recognised today.” Fin Coffey, customer development controller, Mondelez International


[ AWARDS WINNERS ] ‘Best Sales Growth 2015’ WINNER: Britvic Soft Drinks

‘Most Effective Promotions 2015’ WINNER: AG Barr

“This is fantastic recognition for us. It’s been a tough year all round in terms of sales, so it’s absolutely fantastic that a lot of our customers recognise that our brands are selling and delivering some good margins and profits for them as well.” Graham Townes, customer development manager depots, Britvic Soft Drinks

“We are really pleased to win this award. It is a great measure when our customers vote for us and our company’s efforts. This is true recognition, and is evidence that we are listening to our customers – and seemingly getting a lot of things right.” Guy Gissing, national impulse controller, AG Barr

Graham Townes (right), customer development manager depots at Britvic Soft Drinks, receives the ‘Best Sales Growth’ award from Cash & Carry Management’s Martin Lovell.

AG Barr’s business development executive Aman Mangot (right) is presented with the ‘Most Effective Promotions’ award by Cash & Carry Management’s Martin Lovell.

‘Best Sales Representation 2015’ WINNER: Coca-Cola Enterprises

‘Best New Product 2015’ WINNER: Lucozade Energy Grafruitti

“We’re proud to have won the ‘Best Sales Representation’ award, especially as it’s voted for by wholesalers and C&Cs. We’re committed to supporting the channel, and we’ll continue to work closely with our customers to ensure they have pack formats and variants that help drive their businesses.” Simon Harrison, wholesale director, Coca-Cola Enterprises

“We are thrilled to win this award. I think the whole team will be really proud, both those back in the office and all the people who work out in the depots, shops and foodservice outlets. Grafruitti is going to be staying in the range because it has justified its position through its high rate of sale.” Frances Butler, channel controller buying groups, LRS

Simon Harrison, wholesale director at Coca-Cola Enterprises, is proud of the company’s achievements in Cash & Carry Management’s AWARDS.

Frances Butler, channel controller buying groups at Lucozade Ribena Suntory, receives the ‘Best New Product’ award from Cash & Carry Management’s Martin Lovell.

www.cashandcarrymanagement.co.uk

December 2015

19


[ SPECIAL REPORT] By Michael Catling Deputy Editor FWD Gold Medal Awards review

Record numbers turn out to honour the best in wholesale ooker Wholesale and Bidvest Foodservice were among the big winners at the FWD Gold Medal Awards last month, scooping four accolades apiece at the HAC Royal Artillery Garden in London. Bidvest’s clutch of prizes included Wholesale Service to Caterers and Green Wholesaler of the Year, while one of Booker’s victories was Young Wholesaler of the Year, which was won by Stuart Doughty, retail development manager at the Brighton branch. “It’s a real honour to be awarded four Gold Medals,” said Andrew Selley, chief executive of Bidvest. “It demonstrates our passion to be the best foodservice provider in the industry. Our customers are the key to our success and we pride ourselves on being able to deliver service excellence to them.” There was also cause for celebration at Bestway Batleys, as managing director Younus Sheikh collected the Outstanding Achievement award. Reflecting afterwards, Sheikh admitted he was shocked to receive such high recognition. He quipped: “When the citation was being read, I was thinking: ‘Wow, this person has really devoted his life to wholesale’. After a few seconds, it dawned on me that it was me they were talking about. “It really was a fantastic surprise and an incredible honour to receive this recognition. It goes without saying that I could not have done any of this if it wasn’t for the fantastic team I have been lucky enough to have around me over the years. “I would like to thank all Bestway and Batleys colleagues, past and present, for all their support, their hard work and dedication, and the many successes we have achieved together. This award is for them as much as it is for me.”

B

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December 2015

FWD Gold Medal Awards 2015 Roll of Honour Wholesaler Service to Retailers Savage & Whitten Wholesaler Service to Caterers Bidvest Foodservice Green Wholesaler of the Year Bidvest Foodservice Cash & Carry Depot Team Booker, Llandudno Cash & Carry Manager Danny McManamon, general manager, Costco, Chingford Depot Team Member Linsey McNamara, customer services supervisor, Booker, Worthing Customer Support Joy York, branch assistant, Booker, Newcastle Delivered Depot Manager Julie Tidy, depot general manager, Bidvest Foodservice, Cannock Delivered Wholesale Driver Dave McRostie, Bidvest Foodservice, Bicester Young Wholesaler of the Year Stuart Doughty, retail development manager, Booker, Brighton Outstanding Achievement Younus Sheikh, managing director, Bestway Batleys

From left to right: comedian Tim Vine, FWD chief executive James Bielby, Bestway Batleys managing director Younus Sheikh, and FWD chairman Martin Williams.

Although absent from the 800-plus guests in attendance – the biggest in the history of the event – Prime Minister David Cameron sent his congratulations and hailed the “incredible resilience, efficiency and commitment” of the shortlisted finalists. Chancellor George Osborne was just as complimentary, lauding the evening as “a fantastic opportunity to highlight and celebrate the tireless work, dedication, and most important of all, success of British wholesalers over the past year”.

www.cashandcarrymanagement.co.uk

For the first time ever, women won more individual awards than men, with Julie Tidy of Bidvest Cannock (Delivered Depot Manager), Joy York of Booker Newcastle (Customer Support) and Linsey McNamara of Booker Worthing (Depot Team Member) all taking home Gold Medals. Northern Irish wholesaler Savage & Whitten triumphed in the Wholesaler Service to Retailers category, while Costco Chingford general manager Danny McManamon was named Cash & CCM Carry Manager of the Year.


SERVING INDEPENDENTS PROUD SPONSORS OF

SWA AWARDS FOR SALES EXECUTIVE OF THE YEAR

RECOGNISED BY RETAILERS FOR SERVICE AND RELIABILITY • Strategically Commercial

Sugro UK Ltd

Whitewell House

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F: 01270 623069

E: info@sugro.co.uk

ONLINE

• Provider of Industry Leading Promotions • Supporter of Brands

www.sugro.co.uk


[ TOBACCO & ACCESSORIES ]

Down but not out The tobacco industry may be plagued by controversy, but that does not mean the category should be left to crumble in the aftermath of new legislation, writes Michael Catling. n times of strife, many churchgoers will often preach that a bad situation is merely the ‘circle of life’. But when the proverbial continues to hit the fan, patience can often wear thin. For that reason alone, it is hard not to admire the resilience of wholesalers and retailers in adapting to the many changes being imposed on the tobacco category. Make no mistake about it, the tobacco industry is the Jose Mourinho of football and the Miley Cyrus of pop music. Headlines often write themselves and controversy is rarely far away. Philip Jenkins, managing director of Sugro, perhaps best sums up the current situation: “There is always something to talk about…at the very least it keeps things exciting.” Since April, retailers have had to contend with the fallout from the display ban. What’s more, tobacco manufacturers have been engaged in lengthy legal disputes throughout 2015, in an attempt reverse the Government’s decision to impose plain paper packaging laws and to ban the manufacturing of RYO products and cigarette packs under 30g and 20 sticks respectively from 20 May next year. Even now, the arguments continue to rumble on and the industry will remain in a state of limbo until the courts ratify

I

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or dismiss the changes outlined in the revised European Union Products Directive (EUPD II) and the standardised packaging legislation. A final decision is expected early next month and until that time, wholesalers and retailers are being urged to think business as usual. “In terms of the dynamics of the marketplace and the evolution of the changes, we need to work together to share information and promote the value of the category moving forward,” says Jeremy Blackburn, head of communications at JTI. “Retailers need to understand what is coming and what will be available, and that’s why we have created an easy-toread quick glance guide to help provide them with the facts and dates relating to the EUPD II and plain packaging. “Wholesalers can play a crucial role in this communication process, and staff should be encouraged to speak to our sales representatives or visit JTI Advance to ensure they understand the basics at the very least. “The important thing to remember is that stores will have until April 2017 to sell through remaining stock, subject to the outcome of the legal challenges.”


WN O SH E TB O N N A S C N T O S EN A M E E R S I L T A R E EG V L D A R O S I F TH


[ TOBACCO & ACCESSORIES ] Top 10 RMC brands (Nielsen: YTD June 2015)

‘Revolution in cigarette technology’

All data unless otherwise stated: Imperial Tobacco

Imperial Tobacco has a new addition to its JPS portfolio, which features a “revolution in cigarette technology”. The ‘Triple Flow’ concept is manufactured using a blend of Brazilian and Spanish soil, and incorporates unique ‘easy draw’ channels and a mineral filter to deliver a fuller smoking experience. Each premium cigarette is also wrapped in a special paper, designed to actively reduce the amount of smoke emitted – which may result in less smell. “Smooth blends now account for almost a quarter of factory-made cigarette (FMC) sales, and Triple Flow has been designed to offer the ultimate smooth smoking experience,” says brand portfolio manager Emma Stew. “With its next-generation features and distinctive packaging, there is nothing like it in the market.” Available in King Size 19s (rsp £7.49), JPS Triple Flow offers retailers POR rates of 5.95%. Price-marked versions are also obtainable with a £7.35 flash on-pack.

Imperial Tobacco has also begun distributing ‘Partnering for Success’ START packs to help inform, involve and connect with traders who could be affected by new tobacco laws. The packs, which will be continuously updated over the next 18 months, are designed to support and enhance businesses by offering latest legislative information and category advice. “Partnering for Success is all about helping our trade partners navigate any possible changes in the tobacco category,” says Melvin Ruigrok, general manager at Imperial. “We’ve already started to drive this new platform forward with retailers through initiatives including engagement evenings, information packs and presentations.” Greg Fuller, head of route to market at Imperial, believes wholesalers should make a point of utilising the expert category knowledge of local sales representatives whenever they visit. “Imperial Tobacco is dedicated to realising the significant added value we can bring to our wholesale partners by engaging directly with retailers in depot,” he explains. “As well as continuing to invest heavily in ensuring our teams convey their expertise around the latest brands, industry trends, merchandising advice, legislative updates and anti-illicit trade guidance, we’re keen to innovate. “Since July, our teams have been visiting cash & carries with a selection of inventive, exciting and fun new in-depot initiatives designed to involve retailers and drive engagement 24

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1

Sterling

2

Mayfair

3

JPS RMC

4

Lambert & Butler

5

Richmond

6

Marlboro

7

Carlton

8

Windsor Blue

9

Sovereign Blue

10

Rothmans of London

‘Imperial Tobacco is dedicated to realising the significant added value we can bring to our wholesale partners by engaging directly with retailers in depot’ Greg Fuller, head of route to market, Imperial Tobacco around our new products, including Player’s Crushball and Player’s Gold Leaf.” Although plans are underfoot to develop further initiatives like these in tobacco rooms across the country, Fuller believes the onus is on cash & carry staff to help foster strong customer loyalty. “Getting the basics right is a great place to start,” he says. “Retailers are often pressed for time, so by ensuring your tobacco room is spotless, well-presented and continually stocked with a wide range of best-selling brands – and more niche offerings – you’ll help to create an optimum buying environment. “Staff training also plays an important role,” adds Fuller, “and helpful, attentive staff who are able to communicate knowledgeably about your various tobacco offerings, product launches and current market trends will likely pass that expertise onto grateful retailers and, in turn, help your depots rise above the competition.” The popularity of capsules is one of the most notable trends in the market in recent years, with their ability to transform instantly the smoking experience capturing the imagination of adult smokers. Imperial estimates that the segment currently accounts for a 9% share of the £13 billion factory-made cigarette (FMC) market (Nielsen) – a rise of over 2% in the last 12 months. Allied to this, the rise of the savvy shopper has seen the combined value segment (value, super-value and ultra-value) evolve into the biggest price sector, accounting for a 54% volume share (Nielsen). Anticipating these trends, Imperial released Player’s Crushball in May to take advantage of the 96% of independent retailers who carry products from the Player’s range.


WN O SH E TB O N N A S C N T O S EN A M E E R S I L T A R E EG V L D A R O S I F TH


[ TOBACCO & ACCESSORIES ] A dark cloud hovering overhead... “I am very worried about tobacco, to be honest. Going dark is one thing, but the biggest change will be when plain packaging comes into effect. One of the advantages for independent retailers comes from price-marked cigarettes and giving customers confidence. Under the new regulations, these packs will be removed from the market. We really need to educate retailers about selling products at the recommended selling price, rather than charging their own rate. The big concern is that some stores will try to make an extra 5p or 10p and the mults will appear more attractive because of their greater consistency around price.” Martin Race, group trading director, Bestway Group.

favouring value-orientated products, hence the recent proliferation of new cigarette packs containing 19, 18 or 17 sticks entering the market. He reveals: “We recently launched Benson & Hedges Blue and Sovereign Blue to help lower the out-of-pocket spend for cost-conscious consumers and to consolidate our position in the value and super-value sectors.” Yet despite the influx of NPD, Ralph Patel, national president of the National Federation of Retail Newsagents (NFRN), says that some retailers can be “quite stubborn” when it comes to stocking a new line. “New packs sizes are constantly being introduced at the moment but apart from using trade press advertising, there is very little scope to promote these products,” laments Patel. “Retailers tend to stick to the brands and pack formats that are proven sellers. “Tobacco shoppers are creatures of habit, so it is understandable that retailers are perhaps reluctant to take a risk on expanding their range with a product that may or may not sell.

All data: Imperial Tobacco

‘Retailers tend to stick to the brands and pack formats that are proven sellers’ In terms of pricing, the range is said to represent the best value capsule offering in the market. It comes in both King Size 18s (rsp £6.40) and 10s (rsp £3.53). Price-marked packs are also available at £6.14 and £3.33 respectively. “Crushball has been extremely well received by retailers and customers alike,” reports Fuller. “Both our sub-economy brands are continuing to perform well, with Carlton and Player’s contributing to a current sector share of almost 43%.” To build on this success, Imperial expanded its Player’s portfolio last month with the launch of Red Volume Tobacco. The new addition sits within the fine-cut tobacco economy price sector and “uses volume-boosting technology to provide consumers with even more value for their money”, explains brand portfolio manager Emma Stew. Player’s Red Volume Tobacco comes in three formats, including an 8g trial pack (rsp £2.59). The other sizes comprise a 20g pouch (rsp £6.52) and a 50g can (rsp £16.20). Price-marked versions are also obtainable while stocks last. Like Fuller, JTI’s Jeremy Blackburn has noticed a seismic shift in customers 26

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Ralph Patel, national president, National Federation of Retail Newsagents “Wholesalers are the best communicative resource in terms of promoting a new line, and retailers rely heavily on receiving recommendations from staff and educational material to help make the best informed decision on whether to stock a product or not.” Patel highlights value for money as a key motivator for tobacco shoppers, which perhaps explains the reasoning behind Blakemore Wholesale launching a new tobacco pricing strategy across eight of its 14 cash & carry depots.


WN O SH E TB O N N A S C N T O S EN A M E E R S I L T A R E EG V L D A R O S I F TH


[ TOBACCO & ACCESSORIES ] Top 10 RYO brands (Nielsen: YTD June 2015) 1

Amber Leaf

2

Golden Virginia Classic

3

Gold Leaf

4

Cutters Choice

5

Golden Virginia Smooth

6

Drum

7

JPS RYO

8

Sterling Rolling

9

Pall Mall RYO

10

Old Holborn

All data unless otherwise stated: Imperial Tobacco

As part of the initiative, a price reduction has been implemented on the top three best-selling tobacco lines at selected sites, with customers also receiving a free case of Coca-Cola (24 x 330ml cans) when they purchase 15 outers. The eight depots involved in the scheme are Birmingham, Cardiff, Gateshead, Killingworth, Middlesbrough, Swansea, Walsall and Wolverhampton. “We have had a fantastic response from our customers to this new initiative,” says Mark Collins, trading manager for alcohol and tobacco at Blakemore Wholesale. “The tobacco market is tough at the moment but this strategy has given every depot like-for-like sales growth against the previous period, and this is improving every week.” Although turnover varies by depot, Collins estimates that tobacco sales account for 35-40% of total revenue for the group, with brands such as Amber Leaf, Sterling, Mayfair and JPS ranked among its best-sellers. RYO packs “continue to perform well”, says Collins, and are responsible for a third of all cigarettes smoked in the UK (Nielsen). Trends over the past few years have seen a marked increase in the number of consumers who are shopping ‘little and often’, and who are also seeking a quality RYO product with a lower out-of-pocket spend. Packs under 12.5g make up almost 45% of total RYO

Did you know? Amber Leaf is the best-selling RYO brand in all regions and holds a 12.1% volume share of the UK tobacco market (Nielsen).

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% Share of RYO (Nielsen: Sept 2015)

Volume % Share

Units % Share

Rolling tobacco 8g

1.4

3.1

Rolling tobacco 9g

4.1

7.9

Rolling tobacco 10g

7.6

13.3

Rolling tobacco 12.5g

30

41.8

12.5g and under

43.1

66.1

Rolling tobacco 20g

6.48

5.65

Rolling tobacco 25g

30.22

21.08

20-25g

36.7

26.7

Rolling tobacco 30g

0.06

0.04

Rolling tobacco 35g

0.02

0.01

Rolling tobacco 40g

1.38

0.60

Rolling tobacco 50g

18.74

6.53

30-50g

20.2

7.2

revenue in the UK, with price-marked lines responsible for 80% of overall sales in the sector. Imperial Tobacco is a strong advocate of PMPs and recently strengthened its GV Smooth family with the addition of two new varieties – GV Midnight and GV Sunrise. Available in plain (rsp £3.75) and price-marked (£3.60) packs, GV Midnight offers smoker a full, rich flavour, while GV Sunrise delivers an ultra-smooth experience. The two formats come in 10g pouches only, complete with papers. Although smaller packs tend to be more prevalent in independent stores, Fuller reminds wholesalers not to neglect stocking larger sizes as well. He notes: “With more than one in five packs of RYO tobacco sold being the 50g variant, larger offerings are becoming increasingly relevant as they offer adult smokers excellent value for money.” Golden Virginia, which underwent a packaging redesign this autumn, commands an 87% share of the premium RYO segment and comes in a choice of 12.5g, 25g (including papers) and 50g (including papers) pouches. The three packs have an rsp of £5.05 (£4.77 PMP), £9.56 (£9.15 PMP) and £18.91 (£18.09 PMP) respectively. Despite widespread changes in the tobacco market, the UK’s £242 million RYO accessories market continues to maintain a loyal following (IRI), with filter tips ranked as one of the best-performing products. Gavin Anderson, general sales manager of Republic Technologies (UK), says the “combination of value, choice and quality of RYO accessories is proving attractive to consumers”.


WN O SH E TB O N N A S C N T O S EN A M E E R S I L T A R E EG V L D A R O S I F TH


[ TOBACCO & ACCESSORIES ] Are your retail customers making the most of the peak cigar season? A staggering 88% of retailers are failing to capitalise on the potential for cigar sales during the festive season, new independent research has found. The study, which was commissioned by JTI, reveals that while nearly one in four shop owners notice an increase in cigar sales over the Christmas period, only 11% of retailers take advantage of the profit opportunity by stocking up. To put this into context, research has shown that cigar sales can rise by as much as 15% the week before Christmas versus the preceding period. s t b

All data unless otherwise stated: IRI

He explains: “Many shopkeepers are now featuring accessories on display stands and off-gantry fixtures, using them as a signpost for tobacco in store. “The additional prominence given to them is boosting demand for market-leading RYO products such as Swan filters and Zig-Zag papers, and in turn providing a greater opportunity for cash & carries. Swan leads the way in the £65 million filter segent and is growing at almost times the total market, up n year. Republic Technologies’ Zig-Zag brand is also expanding rapidly, bucking the overall trend in the £83 million papers market with growth in excess of 9%.

Miniatures on the march When it comes to analysing the impact of tobacco legislation, the cigar category has perhaps felt the brunt more than most, with sales plummeting dramatically ever since the public smoking ban was introduced back in 2007. Jeremy Blackburn of JTI admits he can recall a time “not that long ago” when the category was worth almost double its current value of £230 million (JTI estimates). 30

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that of the nearest competitor. Miniatures remain the most popular cigar size, with 63% stating this as their most successful format. Jeremy Blackburn, JTI head of communications, says: “Hamlet holds a 38% share of the cigar category in the independent trade and is an absolute ‘must stock’ in the run-up to Christmas. “Cigar sales typically increase over this period, so wholesalers should encourage retailers to take advantage of this trend and prepare accordingly.” Offering POR rates of up to 21.3%, in rs ng

Nevertheless, he maintains that there are still lucrative profit opportunities out there, provided depot managers utilise their data and understand what sells well in their region. “The larger wholesalers that are blessed with a large sales force have a very valuable commodity,” says Blackburn. “Not only can they explore the virtues of their business in greater depth, but they can also regularly review their product range by asking for feedback from customers. Investing in this method of communication is hugely beneficial to help maximise sales across all categories. “It’s also worth pointing out that approximately one-third of cigar sales come from the independent trade. There are still retail outlets and small stores that specialise in Top 10 cigar brands (IRI: WE 28 September 2015) 1

Café Crème Blue

2

Hamlet Miniatures

3

Hamlet

4

Café Crème

5

Castella Classic

6

Moments Miniatures Blue

7

Royal Dutch Miniatures

8

Café Crème Filter Arôme

9

Royal Dutch Miniatures Blue

10

Panama


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[ TOBACCO & ACCESSORIES ] cigars, so wholesalers should make sure that their range contains a variety of small, medium and large formats.” Andy Swain, national sales manager at Ritmeester Cigars, is particularly bullish about the performance of its Royal Dutch Miniature brand, following “strong levels of growth” in convenience stores throughout 2015. “The rise of discount stores like Aldi and Lidl has shown that non-branded ‘value’ products can still deliver quality, despite the cheaper price points,” says Swain. “Being cheapest on shelf is important and our Royal Dutch Miniatures lines continue to sell well as consumers look for better value-for-money products.” As research shows that 38% of smokers will choose different cigars for different occasions, Greg Fuller of Imperial Tobacco believes that wholesalers must accommodate as many consumer preferences as possible to help retailers maintain a loyal customer base. The consensus among the major manufacturers is that miniature cigars should make up the majority of the range, with the segment holding a 69% market share. Small cigars are the next biggest sector, commanding approximately 28% of total sales, with large cigars accounting for the remainder. Alastair Williams, head of sales at Scandinavian Tobacco Group UK, reiterates the importance of making sure that brands which consumers know and trust have a strong presence in a wholesaler’s tobacco room. “Now that the display ban has arrived, it’s likely that unfamiliar products that are new or not big sellers may be

Change of ownership pending for Natural American Spirit Amid all the furore surrounding standardised packaging and the EUPD II, it has almost slipped under the radar that JTI has entered into an agreement with Reynolds American to acquire the Natural American Spirit business in the UK. Although the transaction is currently awaiting ratification from European trade bodies, the deal is expected to be completed as early as January 2016. Earlier this autumn, Reynolds subsidiary Santa Fe Natural Tobacco Company extended its Natural American Spirit Original Blue and Original Yellow brand by introducing 5 x 12.5g outers. ”With Natural American Spirit growing at 30.4%, this gives retailers the opportunity to stock the UK’s number one additive-free RYO tobacco brand,” says general manager Alan Graham.

rationalised out of a retailer’s tobacco gantry, meaning that stocking market-leading products will be of even greater importance for wholesalers,” suggests Williams. “Café Crème is the number one cigar in the UK, and Moments is the fastest growing cigar brand in the UK, making them both ‘muststock ranges’. Furthermore, Williams recommends that wholesalers offer a selection of niche lines, such as Café Crème Filter Arôme, to help retailers gain a point of difference over local competitors. He continues: “Cigar smokers are incredibly loyal so if they find the product they’re looking for, they will keep coming back for more. “While some consumers seek out value for money in terms of the lowest cost per stick or cigar, some are also looking to gain value through smaller purchases such as single cigars. “Our Henri Wintermans Half Corona and Slims are available in outers of 5 x 5 and the new hygro-foil packaging means the cigars have been individually bar-coded, allowing them to be sold as singles where space is limited on a CCM retailer’s tobacco gantry.”

For further information: Imperial Tobacco 0117-963 6636 JTI (01932) 372000 Republic Technologies (01494) 556129 Ritmeester Cigars UK 020-8940 8570 Santa Fe Natural Tobacco Company 020-8582 0242 Scandinavian Tobacco Company UK 020-8731 3400

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WN O SH E TB O N N A S C N T O S EN A M E E R S I L T A R E EG V L D A R O S I F TH


[ LEGAL ADVICE ]

Tobacco legislation: what’s going up in smoke? Meet the legal expert Helen Jenkins, Legal Edge Helen Jenkins is legal counsel to small and medium businesses

eptember 2015 saw the close of the government consultation on the Tobacco Products Directive, with the intention of engaging with those involved in the industry ahead of the introduction of further obligations at a European level. We don’t yet know the response to the consultation, but some of the European obligations have already been introduced in the UK as part of the Plain Packaging Regulations. Under those regulations, manufacturers will have to make changes to tobacco product packaging from May 2016. Producers of e-cigarettes will also have to meet new requirements from November 2016. The good news is that retailers will have until 20 May 2017 to sell through their old stock.

S

Changes for you and your customers from 20 May 2015: a Cigarettes will only be produced in a minimum pack size of 20, so an end to 10s, 14s, 18s and 19s. a RYO will only be produced in packs with a minimum of 30g, so an end to 10g, 12.5g and 25g packs. a All cigarettes and RYO must be sold in brown packaging. Branding as we know it will be removed, and on the front of the pack there will only be a small area for the brand name. a Price-marked packs will no longer be produced. a Packs of e-cigarettes made after 20 November 2016 will have to include an information leaflet and carry health warnings on the front and back of pack. 34

December 2015

What does this mean for you? a This may be the biggest involuntary delisting of consumer products you have seen, so now is the time to prepare and reconsider your range of tobacco products. a What will you do with your additional shelf space and what will your customers buy more of? Plan for your SKU mix and allocations for your more popular 20s brands. a Trade outer branding appears to be untouched. Therefore, any product packaging not intended for sale to consumers may still feature branded material, but how will you differentiate outers that are in cellophane wrapping? a Outers in cellophane wrappers won’t be easily identifiable as they will all be the same colour. You may need bigger/ bolder SKU identification and/or to consider arranging stock on shelf in alphabetical order. Also on the horizon: a Menthol cigarettes will be banned from 20 May 2020 so you have more time to prepare for this. a We don’t yet have the full details about ‘track and trace’ but should know more in 2017. What we do know is that all packs will have to carry a unique identifier which will capture information about where the pack was made, on

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what machine, the intended shipment routes and the market that it’s destined for. There will be a requirement for everyone involved in the supply chain of each product, from manufacturer to the ‘first retail outlet, including all warehouses used’, to record goods in and out of their possession. This includes recording the purchaser of identifiable goods. This is due to be implemented from 20 May 2019 for cigarettes and RYO and from May 2024 for other tobacco products. a The European law stipulates that it is for the manufacturers to provide all operators involved in the supply chain with the equipment necessary for recording the process of capturing the data on supply of the product, so that it is able to read and transmit the recorded data electronically. We will have to wait to ascertain the full impact to the wholesale trade. a At the same time, packs will be required to include a tamper-proof security feature to make it easier to authenticate product and harder for counterfeiters to copy product. All of this comes with a slight health warning. The big tobacco companies have challenged the legality of the Plain Packaging Regulations and the European Tobacco Products Directive through the courts, so where we end up remains to be seen. However, it currently seems likely that you will see plain packs on your shelves from as CCM early as May next year.

Legal Edge are a group of consultant lawyers who all have years of in-house legal experience. This article is not intended as legal advice on which to rely. If you need help in understanding the changes in tobacco law or other areas of your business then contact legal expert Helen Jenkins at helen.jenkins@legaledge.co.uk.


WN O SH E TB O N N A S C N T O S EN A M E E R S I L T A R E EG V L D A R O S I F TH


[ ACHIEVERS ]

Vote for best advertisement Cash & carries and delivered wholesalers across Scotland have named their favourite advert of 2015 for the Achievers ‘Best Advertising Campaign’ category. The trade will now vote on the top nominations (see below). Other products/companies nominated included: Carlsberg, Haig Club, Haribo, Pot Noodle and Snickers.

Foster’s ’Cheerleader’

Irn-Bru ‘Get A Grip’

Irn-Bru ‘Train’

Weetabix On The Go ‘8.59am’

Company .....................................................

Best advert ........................................................

Contact name ..............................................

...........................................................................

Please email your vote to kirsti.sharratt@btinternet.com by 30 December

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[ ACHIEVERS ]

Marked jumps and drops COMPANY

SCORE (max. 50)

1

C&C Group

43.71

42.88

2

2

Heineken

43.43

40.67

8

3

AG Barr

42.09

41.00

5

4

Maxxium

41.67

41.38

4

5

Mars

41.63

40.11

10

=6

Britvic Soft Drinks

41.50

40.91

6

=6

Pernod Ricard

41.50

40.22

9

8

Whyte & Mackay

41.44

40.89

7

9

Diageo

41.38

39.44

11

10

AB InBev

41.20

37.57

21

11

Müller Wiseman

41.17

39.00

15

12

Coca-Cola Enterprises

40.75

37.00

24

13

Red Bull

40.56

39.40

12

14

United Biscuits

40.33

38.10

20

15

Tata

40.30

39.09

14

16

KP Snacks

39.90

38.30

18

17

Tayto

39.80

36.82

26

18

Nestlé 1st Choice

39.78

39.10

13

19

Lucozade Ribena Suntory

39.67

38.20

19

20

Kellogg’s

39.64

38.67

17

21

JTI

39.50

43.29

1

22

PepsiCo

39.44

36.50

28

23

Premier Foods

39.00

38.73

16

24

Molson Coors

38.86

37.22

23

25

Bacardi Brown-Forman

38.38

36.89

25

26

Mondelez

38.30

34.25

30

27

Imperial Tobacco

38.00

41.57

3

28

SHS

37.71

37.44

22

29

Tunnock’s

37.18

36.58

27

30

Danone

36.78

35.70

29

31

Carlsberg

35.17

33.57

31

32

Heinz

33.70

32.18

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OCTOBER PERFORMANCE 38

SEPTEMBER score/position

POSITION

December 2015

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Good things come in fours Also available in PMP

The real thing

No sugar, NoSweetness calories from natural sources lower calorie*

Great Coke taste, zero sugar

No sugar, no calories

Coca-Cola Enterprises are proud to support The Corporate Responsibility Award for Scottish Wholesale Achievers *Reduction by one third of the calories than full sugar colas in GB, due to 37% sugar reduction, thanks to the presence of Stevia extract. Š2015 The Coca-Cola Company. Coca-Cola, Coke, Coca-Cola Life, Diet Coke, Coca-Cola Zero, and the design of the Coca-Cola Contour Bottle are registered trade marks of The Coca-Cola Company.


[ ACHIEVERS ]

Final chance to vote NOVEMBER PERFORMANCE

Deliveries inc Admin Support (max. 20 points) N/A if not direct

Wholesaler Support (max. 20 points)

Channel/Customer Support (max. 10 points)

TOTAL (max. 50)

AB InBev AG Barr Bacardi Brown-Forman Britvic Soft Drinks C&C Group

(inc Magners/Tennent’s)

Carlsberg Coca-Cola Enterprises Danone Diageo Heineken Heinz Imperial Tobacco JTI Kellogg’s KP Snacks Lucozade Ribena Suntory Mars Maxxium Molson Coors Mondelez Müller Wiseman Nestlé 1st Choice PepsiCo

(retail/confec)

(inc Walkers)

Pernod Ricard Premier Foods

(inc Foodservice)

Red Bull SHS Tata

(Tetley)

Tayto

(Golden Wonder)

Tunnock’s United Biscuits

(McVitie’s)

Whyte & Mackay

Contact name & company ..............................................................................................

Please email your completed form to: kirsti.sharratt@btinternet.com


[ EMPLOYMENT LAW ]

Watch out! Is it a genuine redundancy or a sham? Meet the HR expert Cate Ritchie, 121 HR Solutions Cate Ritchie is a fellow of the Chartered Institute of Personnel and Development

ometimes, managers believe that redundancy can be used as a way to remove a poor performer. However, using such an approach can be risky if not managed carefully. We set out some guidance below. Poor performance requires a capability management process that results in employees receiving formal warnings, providing them with opportunities to improve, setting appropriate targets and putting in support for them to attain those targets. The formal process can be time consuming, potentially lasting a number of months, and its end results are unpredictable. An employer embarking on a performance improvement process with an employee can never be sure that the desired improvement will be achieved, or whether the procedure will reach a point where the individual’s dismissal will be fair.

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While an employee may still have grounds to challenge the fairness of a redundancy process, the procedure can be quicker and easier than a performance dismissal. This is particularly the case where it can be argued that an employee’s job functions are sufficiently isolated that the individual’s position does not need to be pooled with other roles. In that situation only, a redundancy process can be used effectively to remove a poor performer as the employer does not need to identify a pool for selection, or devise selection criteria.

‘An employer’s position can easily be undermined if email communications between managers demonstrate the real reason for the employee’s removal is not actually redundancy’ A genuine redundancy dismissal may take less time, provided that there is an appropriate pool for redundancy selection, a reasonable selection process, and that consultation occurs along with a search for alternative employment. It should be clear that there is a legitimate need for the redundancy – in other words, that the requirement for the role has actually diminished. 42

December 2015

Occasionally, an employee identified for redundancy may try to “bump” a colleague who is not identified in the selection pool but whose job is deemed to be an alternative to the redundancy. This means that the employee who is at risk identifies a colleague whose role he or she feels is a suitable alternative, which means that both roles need to be compared to evaluate the person who should stay and the person who should

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become redundant. This also needs to be considered as a potential risk before embarking on the process. The message here is that redundancy and poor performance can be different sides of the same coin. A manager may take the view that the business can do without the employee’s role and that this looks like a redundancy situation, whereas if the employee were performing his or her role sufficiently well, he or she would be retained. As a result, redundancy can be a tempting prospect for managers who wish to move quickly to address concerns, but it is not without risk. It is important that there is a clear case. The role must be sufficiently isolated that there is no need to pool the employee with colleagues and that redundancy is the true reason for the employee’s removal. A clear business case for redundancy should be demonstrated: are there reduced levels of that kind of business, efficiency savings that need to be made, loss of clients, and so on? An employer’s position can easily be undermined if email communications between managers demonstrate that the real reason for the employee’s removal is not actually redundancy but something else. 121 HR Solutions therefore recommends that redundancy or reorganisation proposals are tested to ensure that the decision will stand up to scrutiny and challenge. This applies to both the consultation process with employees and to any subsequent legal proceedCCM ings.

If you need further advice redundancy process or any matter, please contact cate@121hrsolutions.co.uk (0792) 121 3890.

about the other HR Cate at or phone


[ PRODUCTS & PROMOTIONS ]

New smoothie drinks for health-conscious Brits PRODUCT OF THE MONTH

Animated assistant Tata Global Beverages has pioneered a new virtual Tetley sales assistant, who has started “working” for the company in selected cash & carries. The application, which went live at Bestway on 1 December, has been designed to attract buyers and point them to the offers in the tea aisle. “The development is part of our programme to create a sense of theatre at point of purchase and stimulate interest in tea,” says Andrew Pearl, director of customer and shopper marketing for Tetley. “An in-built sensor tells our ‘Virtual Gaffer’ when he is on his own so he can call out to passers-by to get them to come over and look at the current tea offers he has on his iPad. “A number of different scripts have been developed for him and we can manage these remotely to ensure that he is as up to the minute as possible.” The unit itself has a footprint of just 50cm and is suitable for a variety of locations in depot. The technology has already been trialled at Asda and Homebase, increasing unit sales by 75% and dwell times by 50%. The investment forms part of a wider programme of activity in cash & carry environments to stimulate growth in the tea market. Tata is developing a number of initiatives to enhance shopper engagement and is looking to work with wholesale customers on specific activities next year. a Tata Global Beverages (0800) 387227 44

December 2015

Juice producer Sunmagic has developed its first-ever range of functional smoothies to tap into the healthy living trend. The premium juice drinks, which carry the strapline ‘1 Veg + 1 Fruit = 2’, are packed with vitamins and contain less sugar than traditional smoothies, due to the vegetable content. The flavours available include ‘Antioxidant’ Smoothie (Apple, Red Beet & Carrot); ‘Immunity’ Smoothie (Carrot, Mango & Ginger) and ‘Energise’ Smoothie (Apple, Kale & Kelp). Razin Ali, Sunmagic brand manager, explains: “Consumers are increasingly on the look-out for premium soft drinks which deliver on taste and contain added health benefits, such as lower sugar and added vitamins and minerals. “Within this, we have also witnessed

the start of a new trend for smoothies which blend both vegetables and fruit.” The three-strong range of 100% fruit juice smoothies provide two portions of fruit & veg per 330ml serving and will keep for four months in the fridge. Each variant is presented in a premium, semi-transparent PET bottle, with an rsp of £2.39. a Sunmagic 020-7274 6090

Made in Hollywood Premier Foods has entered into an exclusive partnership with renowned baker Paul Hollywood to create a range of bread, savoury and sweet mixes, designed to make artisanal baking accessible to consumers. Launching in February, the Paul Hollywood range consists of 12 SKUs – all of which will sit within the £387 million home-baking market (Kantar). The savoury lines available are Garlic & Herb Tear ’n’ Share Bread Mix; Tomato & Thyme Bloomer Mix; Luxurious Cheese & Rosemary Scone; White Plaited Loaf Mix; and Barm Cake Roll Mix. The latter two variants will have an rsp of £1.49, while the other three will be priced at £2.09. Also obtainable in the range are seven sweet mixes, retailing from £2.09. These comprise: Luxurious Belgian Chocolate Brownie Mix; Bran & Coconut Flapjack Mix; Luxurious Belgian Chocolate Cookie Mix; Luxurious Belgian White Choc Cookie Mix; Luxurious Belgian Chocolate

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Muffin Mix; Luxurious Belgian White Chocolate Muffin Mix; and Famous Scone Mix. Hollywood says: “Lots of people want to bake, but can be put off by the variety of ingredients and perceived difficulty of baking artisan-style treats. “I’m delighted to say that we have created a range of mixes that are easy to use and will give people the confidence to start experimenting with hand-crafted rustic-style baking without the risk of failure and potential wastage.” a Premier Foods (01727) 815850


WN O SH E TB O N N A S C N T O S EN A M E E R S I L T A R E EG V L D A R O S I F TH


All data unless otherwise stated : Nielsen

[ PRODUCTS & PROMOTIONS ]

Warm and toasty

Art of discretion

Seasonal flavours

Burts Chips, producers of premium snacks, has partnered with Guinness to release a Toasted Cheddar variant. Available to pubs, bars and convenience stores, the Guinness Toasted Cheddar flavour comes in a 20 x 40g format and sits alongside its awardwinning counterparts, original Guinness flavour and Rich Beef Chilli. Burts’ sales & marketing director Simon Knight reports that more consumers now want a quick bite to enjoy with their pint at the pub. He adds: “Operators can tap into this by offering the Guinness range, which suggests thoughtful drinks pairings to encourage associated sales.” a Burts Chips (0800) 023 7404

Global hygiene company SCA has developed lights by Tena Ultra Towel to bridge a gap in the bladder weakness category. Designed to facilitate the trade-up between lights by Tena and Tena Lady, the new concept absorbs twice as fast as Normal Ultra Towels without needing to compromise on discretion. The innovation features as part of a new ‘Oooops moments’ digital campaign, which aims to tackle the taboos surrounding bladder weakness via a lighthearted advert. New lights by Tena Ultra Towel comes individually-wrapped in packs of 16 with an rsp of £1.99. a SCA (01582) 677400

Kettle Foods has expanded its sharing range of hand-cooked chips by introducing three festive flavours. Kettle Chips Soy, Ginger, Chilli & Honey has been launched as the brand’s winter seasonal edition and replaces the summer flavour of Thai Sweet Chilli, Lemongrass & Coriander. Two new Christmas seasonings, Beef, Red Wine & Shallot and White Stilton & Cranberry Relish, are also available until the end of December. The latter two flavours come in cases of 8 x 150g bags, while the Soy, Ginger, Chilli & Honey variant will be obtainable in outers of 12 until the end of March. All three SKUs have an rsp of £1.99. a Kettle Foods (0800) 616996

Christmas tipple

Fresh and minty

Modern makeover

Halewood International has unveiled a new creative message for its Red Square Vodka brand, which now features two new flavours. The ‘Life. Live it. Join it. Make it.’ campaign is spearheading a £1 million relaunch initiative and highlights the premium brand as the ‘perfect pairing for sharing and mixing with friends’. The range now includes Sloe Berry and Toffee variants to capitalise on the growing experimentation with spirits and vodkas in the on and off-trade sectors. The update is being promoted via on-trade PoS, PR, social media, digital, trade advertising and retail activation. a Halewood International 0151-480 8800

Smint’s minty fresh collection now features its popular peppermint flavour in a £1 price-marked pack, brand owner Perfetti Van Melle has announced. Price-marked lines are becoming increasingly successful within the confectionery market, according to him! research, with 71% of consumers more likely to buy PMPs as they are perceived to represent better value. The new box, which comes in cases of 12, features a striking yellow price flash for added standout on shelves. The release comes after Smint posted 15% sales growth in convenience stores in the 52 weeks to 10 October (IRI). a Perfetti Van Melle (01753) 442100

In-store bakery specialist Aryzta Food Solutions has overhauled its Pierre’s hot and cold food-to-go range to help convenience stores rival the services offered by high-street food outlets. A contemporary twist has been added to a selection of established favourites and best-sellers in the savoury, pasties, snacks and pies categories. New ‘on trend’ additions include Chicken & Chorizo Lattice, Sweet Potato Fries and Pulled Pork Brioche Bap. Branded packaging, PoS and in-store bakery equipment are currently being distributed to stockists to make food-to-go a beacon in every store. a Aryzta Food Solutions (01753) 442100

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WN O SH E TB O N N A S C N T O S EN A M E E R S I L T A R E EG V L D A R O S I F TH


All data unless otherwise stated : Nielsen

[ PRODUCTS & PROMOTIONS ]

Modern recipes

Raising a glass

Breakfast partners

Premier Foods has set its sights on igniting sales within the £275 million quick meals & snacks category (Kantar) by extending two of its best-selling Batchelors ranges. The Pasta ‘n’ Sauce portfolio now features four Italian-inspired flavours. These comprise Classic Pesto, Smoky Cheese & Pancetta, Spicy Arrabiata and Mediterranean. Retailing at around 99p, the newlook range coincides with the introduction of Super Noodles Taste Adventures – a new spicy noodle selection (rsp 81p). The flavours available include Sizzling Steak Fajita, Thai Green Curry, Peri Peri Chicken and Fiery Vindaloo. a Premier Foods (01727) 815850

Carlsberg has strengthened its association with Premier League football clubs by joining forces with Watford and extending its longstanding partnership with Tottenham Hotspur. The deals provide exclusive rights to offer its flagship beer, Carlsberg, and its wider drinks portfolio to fans at Vicarage Road and White Hart Lane on matchdays, until the end of the 2018-19 season. Carlsberg branding will appear at both clubs’ home league and domestic cup matches on LED perimeter advertising and media interview boards. Carlsberg is now the Official Beer partner of 10 Premier League teams, including Liverpool and Arsenal. a Carlsberg (01604) 668866

Mornflake has teamed up with Nutella to introduce its Top Porridge Pots into the out-of-home market for the first time. Ideal for the café, travel and cost sectors, Mornflake’s Top Porridge Pot with Nutella targets the booming breakfast and food-to-go market and comes in cases of eight. Each pot contains no added sugar and includes a 15g portion of Nutella’s hazelnut spread with cocoa. Richard Jones, Mornflake marketing manager, comments: “Consumers have been buying our pots in Sainsbury’s, Waitrose and Asda for some time now. We’re looking forward to bringing this same success to foodservice operators.” a Mornflake (01270) 213261

Point Break link

Comedy tie-up

Spreadable fun

The Hunger Breaks canned meal range, which is distributed by Princes Group, is carrying an on-pack promotion in association with the upcoming film Point Break. The Point Break logo has been added to all Hunger Breaks’ All Day Breakfast, Full Monty and Big BBQ bean meals products, ahead of the movie release on 12 February 2016. Customers who purchase branded promotional cans could win an allinclusive, five-night break to Mexico, which was one of 10 locations used on set. There is also the opportunity to win 20 pairs of cinema tickets. a Princes Group 0151-966 7000

Carling, the UK’s best-selling lager brand from Molson Coors, has announced a TV sponsorship deal with UKTV channel Dave. The partnership, which was launched last month, will run throughout 2016 and will support the entire Carling portfolio. A series of popular 10-second edits are currently being aired during advert breaks for the ‘Character’s on Dave’ programming strand. These include shows such as QI, Dave Gorman Modern Life is Goodish, Taskmaster, Have I Got News For You and Mock the Week. a Molson Coors (0845) 6000 888

Rowse Honey has launched its biggestever marketing campaign with a £4 million investment across digital, TV, social media and in-store activation. The squeezy bottles, which come in 340g (rsp £2.59) and 250g (rsp £1.99) formats, are being promoted via a TV creative, which hit screens at the start of November. Inspired by the role bees play in pollination, the campaign aims to reinforce the brand as the 100% natural choice at breakfast time. The TV advert will run until the end of February – the longest-ever duration for the brand. a Rowse Honey (01491) 827400

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Is proud to sponsor

BEST SYMBOL GROUP RETAILER for Scottish Wholesale Achievers

Scotland’s No.1 Flavoured water brand1

Healthier soft drinks packed full of goodness

Old Jamaica is the UK’s No.1 Ginger Beer brand 2

Emerge is the UK’s fastest selling functional energy brand3

Soft drinks, healthy drinks & freezable products

Get in touch to find out more; email sales@cott.co.uk or call 01509 674915 1 Source; IRI, All Scan Snack Outlets Scotland, Unit sales – w/e 12th September 2015 Source; IRI, All Scan Snack Outlets, Volume Sales, Latest Year – w/e 10th October 2015 3 Source; IRI, All Outlets – 12 w/e 20th June 2015

2


[FESTIVE FUN ]

Merry Christmas and a happy New Year to all our readers

Can you crack our Crossword? 1

2

3

4

5

6

7 8 9

Test your general knowledge

QUIZ ANSWERS 1 Back to the Future, 2 William Hague, 3 Alastair Cook, 4 Vicky Pattison, 5 Sophie Hunter, 6 Suzanne Collins, 7 20 years, 8 Countdown, 9 Tyson Fury, 10 Eddie Redmayne

Brand Anagrams 1. 2. 3. 4. 5.

50

RACYBUD BOXNUT LETYET RAWELKS PAINLOAN

December 2015

6. SNOBSIRON 7. PHEWSPECS 8. RESTSLUR 9. GILLMINKS 10. EDRINK

10

11

12

13 14

15

16

17

18

19

19

20

Across 2 Wholesaler specialising in confectionery (8) 7 Trade association based at Batleys Bellevue, Edinburgh (3) 8 Landmark member that has depots in Nottingham, Leeds and Spain (8) 9 Brand responsible for ‘The Magic Stock Pots’ (3) 11 Yoghurt drink from Friesland Campina (8) 14 Wholesale business of Musgrave Group (11) 17 Second most-consumed drink after tap water in the UK (3) 19 Kellogg’s cereal range which takes its name from a Disney film (6) 20 Chinese superstore with four sites across the UK (4,3) Down 1 Winner of Most Effective Promotions 2015 at Cash & Carry Management’s AWARDS (1,1,4)

2 New chief operating officer at Palmer and Harvey (9) 3 Named Champion of Champions at the SWA’s Achievers 2015 (1,1,4) 4 Dutch multinational retail chain (4) 5 Bestway’s symbol group (4,3) 6 Buying group based in Cheshire (5) 10 Host city for Today’s Group’s 2016 trade show (9) 12 Retail store franchise recently purchased by Booker (6) 13 New transactional system operating at Bestway’s Abbey Road depot (5,3) 14 Convenience chain which awarded Nisa a £1 billion supply contract (2,5) 15 The world’s number one savoury biscuit brand (Nielsen) (4) 16 Foodservice wholesaler that closed its Professional Food Market in Croydon earlier this year (6) 18 Kent-based wholesaler that rejoined Caterforce in 2014 (1,1,1)

CROSSWORD SOLUTIONS Across: 2 Hancocks, 7 SWA, 8 Caterway, 9 Oxo, 11 Optiwell, 14 MarketPlace, 17 Tea, 19 Frozen, 20 Wing Yip. Down: 1 AG Barr, 2 Helen Buck, 3 CJ Lang, 4 SPAR, 5 Best-One, 6 Sugro, 10 Liverpool, 12 Londis, 13 Apple Pay, 14 My Local, 15 Ritz, 16 Brakes, 18 kff. ANAGRAM SOLUTIONS 1 Cadbury, 2 Buxton, 3 Tetley, 4 Walkers, 5 Napolina, 6 Robinsons, 7 Schweppes, 8 Rustlers, 9 Kingsmill, 10 Kinder.

1. Which 1980s movie franchise correctly predicted automatic self-tightening shoes for 2015? 2. Who held the post of Leader of the House of Commons on 1st January? 3. Which cricketer recently became England's all-time leading run scorer in Test matches, surpassing his own mentor Graham Gooch? 4. Who won this year’s I’m A Celebrity...Get Me Out of Here? 5. Benedict Cumberbatch married which theatre and opera director this summer? 6. Who is the author of The Hunger Games trilogy? 7. Hollyoaks celebrated a landmark anniversary in October, but how many years has the British soap opera been running for? 8. What is currently the UK's longest-running TV game show? 9. Which British boxer ended Wladimir Klitschko’s 11-year undefeated streak? 10 Which English actor won an Academy Award for his portrayal of Stephen Hawking in the film: The Theory of Everything?

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C&C Management Dec 15  

C&C Management Dec 15  

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