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The Scottish Government establishes £5m fund for hard-hit wholesalers


Growth opportunities in retail and foodservice

After-dinner treats to satisfy a sweet tooth



The GroceryAid Covid-19 Fund has been established to provide enhanced support for grocery colleagues during this unprecedented time. Grocery colleagues have access to:

“Amid the huge challenge of Covid-19 our trade has done a great job of keeping the nation fed. GroceryAid has raised a special Covid-19 fund to help our industry colleagues at this time of need. The 24/7 Helpline will deal with concerns and assist with financial stress caused by this terrible virus.” - Charles Wilson, GroceryAid President

Mental Health Support Offering ‘in the moment’ emotional and practical support for colleagues dealing with shock, anxiety and stress through BACP trained counsellors, our Health and Wellbeing portal and Woebot, our AI Robot App. Bereavement Financial Assistance Providing financial assistance for the loss of a loved one through Covid-19. Available to colleagues who lose a partner or the immediate family of a colleague who has passed away as a result of Covid-19 whilst working in our industry. Crisis Grants Non-repayable grants, designed to help with financial emergencies. This is available for colleagues experiencing unexpected financial difficulties due to Covid-19 with a year’s industry service.

GroceryAid Helpline: 08088 021 122 Visit: www.groceryaid.org.uk Follow us:

C ntents

December 2020

Merry Christmas and a Happy New Yea ar to all our readers 07

Hancocks acquires depot in Worksop for online business.



Charity single released in aid of the hospitality industry.

Bestway trials Tippl drinks-led retail store concept in Leeds.



Editor’s Comment Industry News


Talking Point – Retail TWC reports on consumers’ enthusiasm for convenience stores that offer additional services such as a pharmacy.


Talking Point – Foodservice Bidfood highlights the dining and social trends that will affect the foodservice market in 2021.


Spotlight featuring Dipak Karia, long-serving general manager at Dhamecha Group.


Dhamecha’s Dipak Karia, pictured at the Great Wall of China, says that trekking in Tibet and the Himalayas would be his next dream holiday.



Puddings & Desserts Consumers are treating themselves more than ever, resulting in a rise in demand for desserts, cakes and puddings.


Tobacco, Accessories & NextGeneration Products While the tobacco market remains heavily price driven, the vaping and heated tobacco products categories are showing strong growth.

Bidfood predicts the influences on foodservice in 2021.

HMRC continues to clamp down on the illicit tobacco trade.


December 2020


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Building on 2020 learnings or many of us, 2020 has been a mixed bag but for others there has been nothing to celebrate this year. And so it was all the more heartening to hear that the Scottish Wholesale Association, through its relentless lobbying efforts, had secured £5 million from the Scottish Government for hardhit wholesalers in Scotland (see page 6). The fund is intended to cover fixed operating costs such as business rates and the shortfall in revenue suffered by food and drink wholesalers that sell to hospitality, on-trade and/or public sector customers. Wholesalers whose sales have fallen by 20% or more since March can claim a grant. Considering that many operators lost up to 95% of their income from their foodservice clients, there will be a lot of applications. This £5 million fund is a tremendous win for the SWA at a time when the Westminster government has still not extended business rates relief to the wholesale industry. Even with £1.8 billion (and counting) being handed back to the Treasury by the supermarkets (page 10), the Chancellor has yet to see sense and give wholesalers this muchneeded support in recognition of the vital contribution made by wholesaling to the UK economy. While the fight for business rates relief continues, wholesalers can look ahead to the New Year with some optimism, and not just because of the vaccine.


The Scottish Government establishes £5m fund for hard-hit wholesalers


Kirsti Sharratt Managing Editor




In 2020, wholesalers have demonstrated their ability to react quickly to the changing marketplace, accelerating their adoption of technology to pivot their business to enter new markets. Moving forwards, operators can build on their learnings from this extraordinary year to strengthen their operations even further. There have been positives to come out of the pandemic: notwithstanding the lack of business rates relief, the UK Government and devolved administrations must surely have a better understanding of the food and drink wholesale industry; wholesalers have built more collaborative relationships with suppliers; companies large and small have introduced more flexible working practices; and businesses have shown greater consideration for the needs of customers and the wider community. Meeting customers’ needs will continue to be paramount for wholesalers, and on pages 12 and 13 we highlight some of the ideas for boosting business in retail and foodservice in 2021 and beyond. Both articles focus on what consumers want and then show how retailers and foodservice operators can deliver to meet these wishes. My own wish is for a very happy and healthy New Year for all.


Cash & Carry Management is free to cash & carry and delivered wholesale directors, buyers and managers. The magazine is available to other subscribers for just £74 a year or £7 per copy. Overseas yearly subscriptions are priced at £95. Back issues dating back to 2011 are available online.

Growth opportunities in retail and foodservice

After-dinner treats to satisfy a sweet tooth

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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 ADVERTISING AND MARKETING Publishing Director Martin Lovell Media Sales Manager Clare Phillips 4,448 July 2018 – June 2019 Audit Bureau of Circulations Printed by Bishops Printers ISSN 1352-254X All media rates, feature lists and deadlines can be accessed online by visiting: cashandcarrymanagement.co.uk Front cover image: Scottish Parliamentary Corporate Body

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December 2020



SWA secures £5m for wholesalers

A £5 million Scottish Wholesale Food and Drink Resilience Fund has been established by the Scottish Government to help wholesalers affected by Coronavirus restrictions. This sector-specific aid follows months of lobbying by the Scottish Wholesale Association (SWA) and will provide a lifeline to wholesalers which have, in some instances, lost up to 95% of their foodservice income due to lockdowns. The fund is targeted at food and drink wholesalers that sell to hospitality, ontrade and/or public sector clients who have seen sales fall by 20% or more since March. It is intended to cover the shortfall in revenue and fixed operating costs such as business rates, rent, loan repayments, utilities and insurance, as well as specific costs such as the loss of stock.

Vegan cakes Brakes has launched a new range of vegan cakes to help operators capitalise on the burgeoning vegan sector, which has grown by over 400% in the past five years. The selection includes what is claimed to be the first Vegan Jaffa Cake in foodservice (above). Also available are Vegan Salted Caramel Cake, Vegan Choc Fudge Cake (pre-cut), Vegan Cherry & Chocolate Dessert and Vegan Jam Roly Poly. a Brakes (01233) 206000 06

December 2020

SWA chief executive Colin Smith commented: “The Scottish Government has done more than any other UK government by recognising the key role that food and drink wholesalers play in the supply chain and in delivering this wholesale sector-specific fund. “While the sector still faces significant challenges, including Brexit, this funding will make a huge difference to the survival of many SWA members, protecting food

supplies into our 5,000 local convenience stores but especially into our hospitals, care homes, prisons and schools, and potentially giving security of employment to over 6,000 directly employed staff.” Smith continued: “We appreciate, however, that £5 million won’t necessarily give the full support required by everyone, and given the complexities of the food and drink wholesale sector and the different types of wholesale businesses, the SWA will be working closely with the Scottish Government to ensure our members get the financial and other business support they need.” Commenting on the new funding, rural economy secretary Fergus Ewing said: “Many of the wholesalers serving the hospitality sector that have been particularly badly hit are the same wholesalers we rely on getting

food to rural and remote areas as well as ensuring continuity of public sector food provision. It is paramount these businesses are able to continue operating and ready to support the hospitality sector as it recovers.” Applications for funding must be submitted before 13 December. Applicants must show that they have been trading at a loss between April to September 2020, in addition to trading positively prior to this. They will have to provide evidence of projected gross revenues as well as fixed and additional costs for trading between October 2020 and March 2021. Grants will cover up to 100% of the predicted shortfall. If the total value of eligible applications exceeds £5 million, grants will be scaled appropriately. a Scottish Wholesale Association 0131-556 8753

Metro/Makro has launched a global TV and online campaign to encourage consumers to order their festive meal from a local restaurant. The ‘Give Your Kitchen A Break’ campaign is designed to support the foodservice sector, while at the same time highlighting an opportunity for a pleasant respite from the challenges of everyday lives during lockdown. Gisele Musa, VP/global director branding at Metro AG, said: “Usually our communication is targeting our professional customers, but with #GiveYourKitchenA Break we stretched our audience to connect with the general public.

“Because of the pandemic, the gastronomy business is having the hardest time ever, but also, people are fed up with their lockdown home situation. That’s why we send out an invitation to the whole society to play a role, take a break and show their support while enjoying their

Christmas menu from independent restaurants. “It allows gastronomy to stay in business and people can still enjoy all the choices around them.” The campaign film: https://www.youtube.com/ watch?v=0fyhSM4S7T4& feature=youtu.be

Colin Smith: ‘This funding will make a huge difference.’

An invitation to take a break



Incentive for Picture Portal use Food bank Unitas Wholesale has launched an incentive to highlight the importance of its Picture Portal promotional compliance programme. Every three months, one wholesaler will be rewarded with a £500 donation to a charity of their choice, plus a personal prize worth £100 for the winning depot’s Optimisation Champion. The first Optimisation Champion was Imran Tariq from United Wholesale depot in Grocer’s Springburn, Glasgow. He was given a £100 Amazon gift card for consistently submitting high quality images that include effective offshelf displays featuring Unitas Wholesale Mega Deal

Plus promotions. The £500 donation went to Royston Youth Action, a charity in the North East of Glasgow that supports over 300 children and young people every year by delivering an array of social, physical

NBC extends team

National Buying Consortium (NBC) has recruited John Westwood (right) as consortium distribution manager. Previously with Mars Wrigley for five years, his roles included business analyst for the impulse channel and customer development representative, managing grocery accounts including Tesco and Asda. Prior to Mars, he spent 14 years at Delice De France/Arytza Bakeries, where his roles included depot manager (Clevedon), CRM support manager, and commercial analyst. Commenting on his new role, Westwood said: “I am looking forward to working at NBC to further develop the central distribution (NDN) facility which, in such a short period of time, has become an integral part of business. We have already implemented new systems aligned with

our logistics provider to further support the ongoing growth and collective buying power from the group.” Despite the challenging trading conditions for the sector throughout the COVID-19 pandemic, NBC has seen consistent growth, including a substantial rise in sales through its National Distribution Network (NDN). Westwood’s appointment takes the number of employees at NBC to seven. a National Buying Consortium (01608) 692410

and emotional wellbeing clubs and activities. Picture Portal is a tool used to capture real-time examples of promotional execution and activation across the Unitas Wholesale membership. Members submit images each period via a dedicated point of contact in each depot, known as an Optimisation Champion, and these images are shared with suppliers on a regular basis to demonstrate effective levels of compliance. In return, members benefit from enhanced bonus incentives as part of the group’s ‘More 4 More’ rewards programme. a Unitas Wholesale (01302) 249909


Glasgow-based wholesaler JW Filshill has encouraged KeyStore retailers to support their local food bank in the run-up to Christmas by placing a total of 150 dumpbins in the shops for customers to donate food and other products. Craig Brown, chief sales & marketing officer at JW Filshill, said: “Food banks are under even more pressure than usual, and by providing a branded KeyStore dumpbin we can encourage the public to support those in need in a year none of us ever thought we would experience.” a JW Filshill 0141-883 7071

Worksop warehouse Hancocks has acquired a 140,000 sq ft warehouse and distribution centre in Manton Wood, Worksop, to support the growth of its online channel. It will replace the depot in Dunstable. During 2020, the confectionery specialist’s online business has grown by more than 200%, “with no sign of slowing down”. Steve Foster, managing director, said: “In recent years we have upgraded our stores and invested in our web team and systems, and now we are investing in our distribution capability. This

new site will allow us to significantly grow our services and product range.” The acquisition will see around 100 roles created at the new site, and recruitment is already under way. “Our facility in Dunstable will unfortunately close due to it not having the physical space to support our growth requirement but we hope that many of the Dunstable team will opt to relocate with us,” said Foster. “For those who don’t relocate we will provide support towards new employment.” a Hancocks (01509) 216644


December 2020



Schools contract win

Harlech Foodservice has won a three-year contract to supply more than a million school meals a year across Denbighshire. The wholesaler, based in Criccieth, Gwynedd, has pledged that wherever possible, the county’s seven secondary schools and 48 primary schools will receive food sourced in North Wales. Harlech’s commercial director Mark Lawton said: “This is a hugely important contract for us to win against competition from one of the biggest UK wholesalers. “Pupils in Denbighshire eat 7,500 meals a day, and

each week the head cooks in each of the 55 schools in Denbighshire place their orders for 35,000 meals. Harlech already supplies similar numbers of school meals for Gwynedd and Conwy. Lawton added: “We believe it is important that we supply schools in North Wales with food from North Wales to support the local community, and we also offer a bilingual service which is important in an area like this so that orders can be taken in Welsh.” a Harlech Foodservice (01766) 810810

Mark Lawton of Harlech Foodservice with cook Louise Roberts.

New dates Country Range Group is to hold virtual business development day sessions between members and suppliers on 3 and 4 February. Coral Rose, managing director, said: “Our industry is based upon relationships, and in spite of the recent restrictions, it’s vital that our member wholesalers and key suppliers have still been able to meet ‘face to face’. “These virtual business development days have been a huge success, so we’re excited to be rolling them out in 2021.” a Country Range Group (0845) 209 3777 08

December 2020

Policy defended Unitas Wholesale has defended its membership policy after five wholesalers announced their decision to leave the group. The wholesalers – CK Wholesale Supplies, Holland Bazaar, O’Reillys, Quayside, and Rayburn Trading – are reported to have a combined turnover of £210 million. Four of the departures relate to a policy introduced by Unitas in the summer that members cannot also be part of other buying groups. O’Reillys, Quayside, and Rayburn Trading are members of Sugro and have chosen to stay with that group, while Holland Bazaar is leaving Unitas to join Confex. Their departures follow the split of Confex from Unitas in June, with a similar exit by Country Range Group announced in September. Darren Goldney, MD of Unitas, said: “Unitas Wholesale is a member wholesaler owned group working hard to achieve the best and the broadest range of services

and benefits for independent member wholesalers. “This can only be achieved when we are the most effective route to market for suppliers. The members have agreed this is best achieved when everyone contributes and we are clearly operating as ‘one’, able to be straightforward with suppliers and fair to each other.

“Where wholesale members are unable or unwilling to work together in this way, they may leave to join other groups who may not operate with the same principles and disciplines.“ He added: “The recent reported loss of five members was prompted by Unitas. The reported loss to the purchasing power of Unitas was approximately 20 times exaggerated versus the reality.“ a Unitas Wholesale (01302) 249909

Single released to help hospitality With COVID-19 restrictions continuing to hit hospitality, Bidfood and Hospitality Action have released a charity single to raise vital funds for the industry. The single, which is a


cover of ‘The Climb’ by Miley Cyrus, aims to shine a light on the importance and resilience of the industry in these testing times. Produced by Troy Miller, winner of an Ivor Novello

award, the single encapsulates raw and authentic voices from across the industry. Singers include patron of Hospitality Action Brian Turner CBE, and employees from Subway, IPC, Bidfood and Hospitality Action. Mark Lewis, CEO of Hospitality Action, said: “By purchasing a copy you’ll be helping hospitality families put food on the table and keep a roof over their head this Christmas.” To buy the single, visit: https://www.bidfood.co.uk/ christmas-charity-single/ a Bidfood (01494) 555900

Tippl store trialled by Bestway Bestway has launched a trial of Tippl, its new drinks-led retail store concept, in Garforth, Leeds. The Tippl format extends Bestway’s Wine Rack model in high footfall areas to meet shoppers’ needs across the full day, with a strong foodto-go proposition alongside premium meal solutions for breakfast, lunch and dinner that can be enjoyed in store. There is also an on-trade proposition which means customers can enjoy food with their favourite tipple inside the store itself. Through a series of strategic partnerships, Tippl offers barista coffee (from Tchibo Coffee International), freshly baked pastries, stone baked pizzas and loaded nachos (from Country Choice), and an expanded beer range that includes fresh draught ale to

Four more Sugro UK has four new members: FMCG Trading, Connective Pharma, Sun Exotic Wholesale and Metropharm. The four recruits have added more than £24 million to the turnover of the Sugro group. Sugro business development manager Tabitha Hunter-Smale said: “New member acquisition continues to be a key focus for the business development team and allows us to strengthen our offering to both new and existing Sugro members. “Our focus has, and always will be individual member-centric, utilising our experienced in-house team to provide the very best in sales, IT, design and marketing support.” a Sugro UK (01270) 628728

take away courtesy of Craftbeer Growlers. In addition, gourmet frozen food is sourced from Gourmade Foods, while chilled and ambient snacks and nibbles come from Cotswold Fayre. Consumers can also enjoy locally produced ice cream, and chilled deli and dessert ranges. The concept of Tippl has evolved from analysing localised data across the Wine Rack estate. This has provide valuable intelligence for the business to identify who is in the vicinity of the

store and their needs when they are physically there. “2020 has been a catalyst for change in consumer buying behaviours, and the need for agility in all businesses is evident in order to meet those changes,” said Dawood Pervez, managing director of Bestway Wholesale. “Service and knowledge are key to the Tippl format and our store colleagues have been undertaking additional training to ensure they are able to provide that crucial product knowledge.” a Bestway 020-8453 1234

Confex has unveiled a new digital magazine, Eat, for foodservice operators. Distributed via its 200 members across the UK to 60,000 customers, the new monthly magazine features industry advice, insight and updates as well as food and drink trends, all aimed at

enabling foodservice operators to stand out and run a successful business. “This year has been the most challenging imaginable for the hospitality sector as operators have had to close their doors and continually find ways to adapt their businesses,” said Jess Douglas, marketing and HR director at Confex. “This is heartbreaking for independent business owners who are fighting to survive and we wanted to find a way to offer more support. By creating Eat, which will go directly to their inbox, they can access a fantastic source of information and inspiration to help them through this incredibly difficult time and beyond.” a Confex (01608) 652333

Digital magazine


Cracking savings

JJ Foodservice is promoting a new range of own-brand nuts and seeds, launched just in time for the festive season. “Our nuts are perfect for sharing at Christmas and a timely addition to our home range,” said chief product officer Sezer Ozkul.

The range includes fresh walnuts in their shells, monkey nuts, roasted almonds, pistachios, hazelnuts and walnuts, as well as roasted and salted sunflower seeds and pumpkin seeds. The selection also features spicy corn, roasted white chickpeas and a nut cocktail mix. Until the end of the year, the wholesaler is offering £1 off each pack. a JJ Foodservice (01992) 701701

Donation Stax Trade Centres, one of the UK’s largest non-food cash & carry wholesalers, has donated £27,500 to The Rainy Day Trust, a charity that supports existing and former employees in the home improvement industry. David Hibbert, joint managing director of Stax, commented: “We wanted to do our bit to help people within our industry who may have fallen on hard times.” a Stax Trade Centres 0161728 8000


December 2020



Magical moments

Nisa has launched a ‘Magical Moments’ Christmas campaign on the Nisa Locally website. Running until 2 January, the campaign invites customers to submit their memorable occasions online and post them on social media to be in with a chance of winning a case of McGuigan wine. As part of the initiative, a host of Christmas-themed featuring instore posts offers, festive baking recipes and cocktail ideas are being shared on Nisa’s digital platforms to inspire customers and spread some festive cheer using the hashtag #NisaMagicalMoments. a Nisa Retail (01724) 282028

Rates relief return welcomed The decision by firstly Tesco and then Morrisons, Asda, Sainsbury’s, B&M, Aldi and Lidl to hand back millions of pounds worth of business rates relief they received as support during the COVID-19 crisis has been welcomed by the wholesale industry. The total being returned by these firms to the Treasury is estimated at over £1.8 billion. Business rates relief was extended to all retailers as part of a package of measures announced in March, but wholesalers were not given the same support, despite many losing a huge chunk of their business overnight as their hospitality customers were forced to close. Meanwhile, supermarkets thrived.

Commenting on Tesco’s decision to hand back the money, which prompted others to follow suit, FWD chief executive James Bielby said: “Supermarkets have done very well at the expense of the hospitality sector during the COVID crisis and we congratulate Tesco on setting a precedent for others to follow.

“It was always a mistake to offer business rates relief to supermarkets who would gain sales from the closure of restaurants and pubs, but not the wholesalers who supply those struggling hospitality venues, as well as independent shops and vital services like schools and care homes. “Now Chancellor Rishi Sunak has both the opportunity and the funds to correct that mistake and support this vital supply chain which he has so far ignored.” The SWA has secured a £5 million fund from the Scottish Government to help cover business rates and other costs for wholesalers in Scotland: see page 6. a FWD (01323) 724952

departments, have been trained as mental health first aiders. The company has also offered its employees flexibility around working from home, childcare, and looking after relatives who are shielding. Simon Hannah, chief executive officer, described Amanda’s appointment as vital to the smooth running of the business. He said: “In a busy wholesale operation like ours, it is easy to associate health and safety with the safe operation of equipment like forklifts in our depot and our drivers handling deliveries. However, the health and safety remit goes so much further than that. “We have looked more closely at our procedures and are investing in what really matters.” a JW Filshill 0141-883 7071

Abergavenny-based Baileys has opened a new 14,000 sq ft C&C/wholesale warehouse in Ledbury, Herefordshire. The company specialises in short-dated products, as well as long-dated clearance parcels. Its range includes alcohol, confectionery, soft drinks, bulk cleaning products, and pet food. It supplies convenience stores, petrol forecourts, discount stores, wholesalers and market traders all over the UK. The Baileys Wholesale

depot in Ledbury joins the company’s existing stores in Abergavenny and Ross on Wye, which trade under the Baileys DIY name. Open to the trade and public, they are owned and run by the local Bailey family who have been in business in the area for over 45 years with a petrol station in Abergavenny. Director Matthew Bailey said that Baileys Wholesale differs from other clearance specialists in selling by the case as well as the pallet. a Baileys (01873) 853433

James Bielby congratulated Tesco on setting a precedent.

Health & safety focus Clearance specialist

JW Filshill has stepped up its health & safety measures since its recent appointment of Amanda Casey as health & safety manager. In addition to distributing branded KeyStore and KeyStore More face coverings for staff in outlets across Scotland and the north of England, the Glasgow-based wholesaler arranged for over 100 members of staff to receive the flu vaccination ahead of the busy Christmas trading period. Furthermore, 18 of the Filshill team, across all


December 2020


*Terms and conditions :Independent convenience and Booker/BRP retailers within the UK, 16+. Display the Golden chocolate Cadbury Creme Egg POS for the chance of a winning egg to be placed within your store between 26/12/2020 and 04/04/2021. If a winning egg is distributed in your store and is registered by the winning customer with the Promoter, you win. Independent Convenience Retailer Prizes:1 x £1,000, 9 x £500 & 20 x £50 Amazon vouchers. BRP/Booker Prizes: 1 x £1,000, 3 x £500 & 4 x £50 Amazon vouchers. See https://www.deliciousdisplay.co.uk for full T&Cs. Promoter: Mondelez Europe Services GmbH – UK Branch, Sanderson Road, Uxbridge, UB8 1DH.

Are hybrid stores the future?


Providing a quick top-up shop is no longer the preserve of convenience stores. As such, they should consider introducing extra services to boost sales.

ore than a third (35%) of consumers would ‘probably’ or ‘definitely’ use a shop that was a cross between a convenience store and another type of outlet. According to TWC’s report The Growing Role of Convenience Stores, the power of two can be bigger than one when it comes to retail shops. The data and digital specialist points out that many convenience stores already offer Post Office services – a valuable draw in terms of bringing more footfall into the store. Partnering with coffee brands such as Costa and foodservice brands like Subway are other examples of retailers adding value to their customer proposition. TWC’s study showed that offering facilities for consumers to eat food on the premises (a restaurant or coffee shop with eat-in tables) is a format that could increase traffic and sales. A total


Combining a convenience store with a pharmacy appeals to 41% of UK consumers.

of 35% of UK adults said that they would embrace this European-style approach when visiting a retail store, and 28% said they would be attracted to a store if they could consume alcohol on the premises. Another idea – to have a proper pharmacy with an on-site pharmacist in-store – was even more popular, with 41% keen to take advantage of such a service. According to Tom Fender, development director at TWC, the traditional convenience store of 20 years ago would be under 3,000 square feet. It

35% of adults would embrace the European style approach of eating at a store.


December 2020


would sell a wide range of products and services, open from early until late – usually seven days a week, and shoppers would typically travel from within a radius of half a mile. Shoppers would buy everyday needs, such as newspapers and tobacco, and would top-up shop between less frequent, larger supermarket purchases. However, things have changed since then. “There is far greater competition for top-up shopping today,” points out Fender. “A huge percentage of visits to supermarkets are top-up trips (10 items or less, contents of a basket only) and discounters are taking a chunk out of c-stores’ top-up market. “Therefore, c-store operators have had to go fishing in ponds other than the ones they are used to. “It’s not just about food, although food and coffee are powerful draws,” he says. “For example, we have yet to see the emergence of pharmacy aligning to c-stores, which feels a symbiotic partnership and one that would have great appeal to residents in local communities. Almost half of 7-11 stores in Japan have a pharmacy. “It makes sense for retailers to consider introducing business concepts that are clearly successful in their own right and attract high levels of footfall.” Fender adds: “We have seen how c-stores have linked up with specialists like local butchers; maybe we should CCM look at pharmacy too?”

Consumers take a holistic view


is all about fluid creativity, based on a ‘no rules’ approach to culinary creation. Sub-trends: modern Italian, Middle Eastern, Japanese comfort, global, African, Indian.

Trends that will influence foodservice in 2021 focus as much on ways of life as on the role of food and drink on all states of wellbeing, points out Bidfood.

ollowing the dramatic change in the food and drink landscape in 2020 – when consumers spent much more time at home and cooking became a national pastime – Bidfood has identified the trends that are set to shape the foodservice industry in 2021. The wholesaler highlights six key food and drink trends:

Social trends impacting foodservice over the next year include: Local landscape: Houses will continue to act as both a home and an office, increasing appreciation of the immediate surroundings and also of services, outlets and spaces in the local vicinity.


Wellness my way: Diet, exercise and weight management are front of mind, with authorities like the World Health Organisation confirming that a healthy diet plays a ‘crucial role’ in fighting off Coronavirus. For some consumers, that means adopting new diets and lifestyles. For others, it is more about subtler changes to their routine – such as healthy swaps – with the allowance of elements of indulgence to boost overall wellbeing. Sub-trends: light & low, stealth health, digestive health, functional, optimise yourself, fish first, better kids’ food. Careful consumption: In the new age of transparency, there is nowhere to hide irresponsible practices or high air miles. Consumers are looking to support lowimpact and local businesses, as well as brands and producers that align with their values on diversity and equality. Sub-trends: waste less, staying local, transparent, biodiverse, accountability. Little luxuries: Consumers are seeking ways to elevate everyday experiences. For some, it is as simple as upgrading simple rituals like tea and breakfast with a gourmet twist, such as a tea with an exotic flavour profile. For others, it is about upgrading with craft ingredients such as truffle oil or experimenting

Ethics in action: Consumers want people, animals and the planet to be cared for and considered. with natural biodynamic wine. Sub-trends: touches of luxury, visual, alcohol rethink, artisan. Food for the soul: Consumers are looking to make their homes and family lives as comfortable as possible. They are staying on top of meal planning and schedules. The need for comfort means that ‘carbs’ are now back in fashion. Sub-trends: classics revisited, nostalgia, carbs elevated, home focus, upskilled at home. The new normal: Places previously considered safe are no longer, with the threat of a virus. Foodservice is going to great lengths to reassure consumers, but the pandemic has also prompted acceleration of online solutions that companies were working on anyway. Other tech advances address the climate crisis and food insecurity. Sub-trends: virtual foodservice, safe & sanitised, friction-free, direct to consumer, food tech.

Whole health: Consumers will be striving for solutions that focus less on instant, external results and more on achieving maximum physical, nutritional, spiritual and mental fitness. Safe and seamless: Following the dramatic rise in the use of digital and biometric technologies to reduce face-toface interactions and safeguard health and wellbeing in 2020, further improvement across various technologies and applications can be expected in 2021. Faith in the future: Levels of trust and confidence in the economy faltered in 2020. Signs of optimism suggest that a new year creates a new start, with the prospect of ending 2021 in a much better place than where it started. CCM

Cuisines: Menus in 2021 will feature an interesting range of well-established and less familiar cuisines, reflecting creative exploration in households during 2020, as well as the desire to freshen palates with something a bit more adventurous. Cuisines such as Italian, Japanese and Indian are being explored in more depth, with rising influences from African and regional Indian or Middle Eastern cuisines. Global cuisine www.cashandcarrymanagement.co.uk

December 2020


[ SPOTLIGHT ] Dipak Karia, general manager at Dhamecha Group Four Rs: Respect, Responsibility, Resources (to carry out the responsibility) and Reward. In business I also systemise everything and humanise where systems do not fit. This also allows individuals in my team to develop and progress in their careers. I am proud of the fact that some have been elevated to general manager positions.

Dipak’s road to success What have been your biggest achievements in work and outside work? My biggest achievements in work were picking up a national award for the Best Newsagent in 1994 and then winning an FWD Gold Medal for Depot Manager of the Year in 2010. Outside work, trekking the Great Wall of China for a week and raising large amounts for Help the Aged was a big accomplishment. Who has been the biggest inspiration to you? I am a sum of everyone I have met, as every individual has qualities that inspire. What were your ambitions when you were growing up? I wanted to be a teacher but ended up in retail and then migrated to wholesale when I joined Dhamecha Group in 2000. What are your interests outside work and how do you maintain a work-life balance? I enjoy reading, swimming and playing golf (not brilliantly though!). I have always maintained a good balance and had a good time with my children when they were growing up. As we grow 14

December 2020

older, my wife and I do have a good circle of friends to keep us socially busy. How would you describe your personality and what approach do you take in business (and in life)? I would say I am approachable, friendly and caring. I have always been the same. I do not undermine anyone. In business, we are there to serve our customers, our suppliers and our colleagues. As for team building I follow

What has been your biggest challenge and how did you overcome it? Big or small, I break each challenge down to the core and restart; that way, I find that I always overcome the challenge with the desired outcome. What is your favourite film, book and song/piece of music? I am not a film enthusiast, but I recall enjoying The Godfather (the original). I also enjoyed reading Inner Engineering: A Yogi’s Guide to Joy, a bestseller by Sadhguru Jaggi Vasudev. It is a book that helps you connect with yourself. The song Imagine by John Lennon also touched a chord with me for its lyrics. If you won a holiday, where would you go and who would you take with you? I would go to Tibet and trek and explore the Himalayas with my wife Mina, as we both love the mountains. Second choice would be Japan as we have not been CCM there before.

2020 marks 20 years at Dhamecha Dipak Karia started his working life with John Lewis Partnership in 1976 as a management trainee. He did a circuit of jobs in the business and was a senior section manager in menswear when he left in 1981 to be his own boss. He bought, developed and sold a number of newsagents until 2000 when he joined Dhamecha Group as general manager. During his 20 years there, he has managed several depots including Croydon and Watford, and he also headed up the export division. Outside of Dhamecha, he set up and


chaired a Chamber of Trade for retailers in Potters Bar, Herts. The Chamber was instrumental in rejuvenating the town centre to compete with the large push by the multiples at the time. Karia also served as a non-executive director with Hertfordshire Training and Enterprise Council and Business Link from 1994 to 2001, and was a member of the advisory committee representing East of England to the Department of Trade from 1996 to 2001. In addition, he was a member of Rotary from 1991 to 2003.


p ro d u c t

Treats to deliver a boost


With over a third of consumers treating themselves more than ever (Kantar), desserts, cakes and puddings are worthy of focus as consumers seek out products to satisfy their sweet tooth.

rom comforting childhood favourites to contemporary choices, after-dinner treats provide an opportunity for wholesalers and their customers to give their sales a boost. The Cheesecake Factory, the popular North American cheesecake brand, is now available in the UK from Blaze XK, which was appointed by the brand’s master European distributor, Netherlands-based Schengen Desserts BV. There are two ranges for the European market – At Home for retail and Bakery for foodservice. Products include Original, Chocolate Mousse, Red Velvet and Strawberry Topped cheesecakes, as well as cheesecake slices ideally suited for convenience stores and food-to-go counters. Brem Bremner, brand director and co-founder of Blaze XK, says: “These are show-stopping, premium desserts from a famous American brand and they are going to go down a storm with consumers looking to treat themselves, especially in these uncertain times when they want something special to enjoy at home.” Innovation keeps shoppers engaged in the ice cream category in the colder months, according to Kat Jones, marketing manager at General Mills, and people have been trading up to luxury ice cream brands because they provide taste enjoyment that delivers every time. Handheld ice creams have experienced a double-digit rate of sales growth (Nielsen), and General Mills relaunched its Häagen-Dazs stick bars range earlier this year with a new look and improved recipes for the Salted Caramel and Peanut Butter Crunch variants.


while the Mr Kipling limited editions are Frosty Fancies, Winter Whirls, Festive Bakewells and Reindeer Slices. In addition, the company is backing Ambrosia with a £2.5 million campaign, including TV advertising. Running until March, the campaign is being supported by in-store materials. Limited-edition 400g cans of Ambrosia Custard and Rice Pudding with festive designs are also available. La Lorraine Bakery Group, a Belgian manufacturer, has launched a new doughnut brand, Donut Worry Be Happy. Variants include Ruffallo Cream, with a fresh coconut glaze, and Belgiyum, with a real Belgian chocolate filling. Seasonal doughnuts are also available, and the range caters for vegan and vegetarian preferences. The freshly frozen doughnuts come in space-saving foodservice specific packs. A shelfready pack of 12 is available, along with a 48-pack. PoS material is available for retailers and caterers. Two cookie products from Rich Products’ thaw-and-serve bakery range, Baked, have recently been launched in 875 One Stop stores across the UK, as the company looks to increase its distribution within the convenience channel. In-store bakery cookies have seen value sales rise by 1.9% in the past three months (Kantar), and One Stop has initially introduced White Chocolate cookies and the top-selling Triple Chocolate cookies. “Desserts are the grand finale of any meal and quite often the course that diners talk about – and photograph – the most,” points out Tracey Hughes, managing director of ingredients distributor Henley Bridge. “It is therefore vital that operators get their desserts offer right to set themselves apart from the competition.” The company offers an “unrivalled selection of fantastic products to give desserts the wow factor”, including chocolate and cocoa powders from Belcolade, Guittard, Chocolat Madagascar, and deZaan, Norohy organic vanilla pods, and a huge choice of edible inclusions and decorations from CCM brands such as Irca, Barbara Decor, Sosa and Taura.

For further information: During the festive season, Premier Foods predicts that people will continue to look for brands they trust to help celebrate with family. At the same time, it sees an opportunity for seasonal, special-edition ranges. This Christmas, the company is bringing back its popular festive cakes selection. The Cadbury lines are Festive Cake Bars, Mini Yule Logs, Reindeer Cakes and Caramel Mini Rolls, 16

December 2020


Blaze XK (07474) 794871 General Mills (01895) 201100

Henley Bridge (01273) 476721 La Lorraine Bakery Group 0161-765 3300 Premier Foods (0800) 032 7111 Rich Products (0330) 060 5100

Maximise your sales with The In-Home coffee category thrived in 2020 with 10.3% greater value sales than the previous year driven by greater In-Home consumption across the board, caused by increased working from home. Core Coffee contributes to 76.9% of Total Coffee sales in Independent Retailers, driven by Regular and Premium segments. Don’t forget that shoppers are using this channel for a ‘Top Up’ shop and therefore a smaller range of relevant small or medium pack sizes displayed well makes the shopping trip quicker and easier for them. By giving faster selling lines more space on shelf also reduces the time spent on replenishing the fixture.

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Nescafé Azera Nitro has grown +32% in the last year and is now worth £98m!*

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*All Data from IRI Total Grocery/Independent retailers 52 W/e 7th Nov 2020 and Kantar Worldpanel data 1st Nov 2020. ®Reg. Trademark of Société des Produits Nestlé S.A

Price is king in tobacco trade


The £14.6 billion tobacco market (IRI) remains heavily price driven and this has led to more consumers switching to roll-your-own and value cigarettes. Meanwhile, vaping – worth £269 million in the last year in traditional retail – is showing growth of 26.6% year on year (IRI). quarter of consumers are now dual smokers, using both roll-your-own and factory-made cigarettes for different occasions, according to Imperial Tobacco UK. “Wholesalers must be well-equipped with a strong product range across all categories in order to cater for this trend and keep one eye on their sales so that they can adapt their range to meet the needs of their customers,” advises Duncan Cunningham, UK corporate affairs director at Imperial Tobacco & blu. As a result of the continuing shift into RYO, the category now accounts for 45% of tobacco sales, with recent data showing volume sales are growing by 30% as consumers seek out greater value for money (ITUK). In line with this growing demand for value, sales in the economy RYO segment are also rising and Imperial is well positioned to help wholesalers tap into this trend with more brands in the economy segment than any other tobacco manufacturer. These include Lambert & Butler RYO, which accounted for 4.7% of all sales within the economy RYO segment in July 2020. This increasing consumer shift towards RYO products also presents sales opportunities for tobacco-related accessories. “In order to help retailers take advantage of the incremental sales on offer, wholesalers should make sure they’re fully stocked at all times with filters, papers, lighters and other flavourrelated innovations like Rizla Flavour Cards and Rizla Polar Blast Crushball filters,” says Cunningham. The Rizla Flavour Infusions range, launched at the end of last year, is currently selling between 800,000 and 900,000 packs per week, and it reached £5 million in sales value in 2020 with two months of the year to go. Restrictions on travel due to COVID-19 have reduced the amount of tobacco purchased abroad for consumption in the UK. This, in turn, has led to increased domestic sales, allowing wholesalers to benefit. An increasing number of consumers have been buying Golden Virginia Original – a strong travel retail brand – within UK retail stores, reports Imperial. The volume of Golden Virginia Original sold to consumers in July 2020 was almost 50% higher than before the pandemic in February 2020. “We expect this trend to remain as consumers continue to buy in bulk, especially for RYO given the demand for value currently being seen,” says Cunningham.



December 2020


Although there is a growing trend towards RYO, factorymade cigarettes (FMC) still account for the majority of tobacco sales, with a 55% share of the market and are experiencing volume growth of 4% year on year (ITUK). Since the arrival of the menthol ban, former crushball consumers have been trialling different options before settling on their product of choice but many are yet to find the right product to suit their nicotine needs, points out Cunningham. Imperial’s New Crush variants – JPS Players and L&B Blue – have been designed specifically with these consumers in mind. Features include a unique filter that delivers a cooling sensation during smoking, as well as a white-tipped firm filter that retains its shape and structure until the end of the smoke. Other recent innovation from Imperial includes a new Superkings variant in its L&B Blue FMC range that lasts 35% longer. The variant, which is a direct replacement for L&B Blue Real Blue Superkings, has an rsp of £9.30 for a pack of 20. Meanwhile, Imperial has just launched a new Embassy Signature range with the aim of unlocking sales among shoppers seeking out top brands. Comprising Gold and Silver variants, Embassy Signature is said to offer all the features associated with premium factory-made cigarettes without the premium price tag, and promises to deliver increased sales and profit margins for retailers. Both variants have an rsp of £9.30 per pack of 20, and the Gold style is also available in packs of 100 at an rsp of £46.50. The Embassy Signature outer promotes the brand’s new modern design with an eye-catching look to grab the attention of retailers. Chris Street, market manager UK at Imperial Tobacco, comments: “Through our new Embassy Signature range, we have created a superior modern tobacco blend using our finest materials to give the best smoking experiences for consumers looking for exceptional quality but at a decent price point. “The Embassy brand has enjoyed continuous growth over the last 12 months and with the sub-economy sector worth almost 60% of the total FMC market (ITUK), we’re confident the launch of our new Signature range will drive further sales momentum in the months to come.












[ TOBACCO, ACCESSORIES & NGPS ] “Not only does the range benefit from all the characteristics of a premium FMC product and the familiarity of the Embassy brand name, but it also offers exceptional value for modern shoppers, and importantly increased profits for our trade customers.” JTI relaunched Sterling 3-in-1 hand-rolling tobacco in October, changing the pack from a box to a pouch. The product, which has an rsp of £12.30, features tobacco, papers and filter tips all in one pouch “for a fuss-free experience”, explains Ross Hennessy, sales vice president. Other recent developments from JTI include the relaunch of Sterling Dual Capsule Leaf Wrapped with an updated formulation. The king size cigarillo contains a mentholated Virginia Blend tobacco, and the filter includes a capsule that when crushed releases a peppermint flavour.

Clamping down on illicit trade More than four million illicit cigarettes, worth an estimated £1.6 million in lost duty and taxes, were recently seized by HMRC from a warehouse in Glasgow. Investigations then led the officers to a tobacco factory in Hamilton, South Lanarkshire. The equipment was dismantled and officers confiscated two industrial mixing machines, a tobacco shredder, packaging and 45kg of tobacco. Three men from Airdrie were arrested and charged with excise duty fraud and money laundering offences. Around £20,000 in cash was also seized from one of the properties. Meanwhile, a Newcastle father and son, who led a tobacco crime gang that smuggled more than five million illegal cigarettes into the North East, have been jailed for four years each. The duo sent gang members to various locations across the country to pick up large quantities of illegal and counterfeit cigarettes and hand-rolling tobacco, which were then stored and sold from residential addresses in Newcastle. In total, the products were worth more than £1.6 million in unpaid duty. In other news, JTI found illicit tobacco to be on sale in 61% of stores test purchased in the Bolton area. Packs of illegal cigarettes were on sale for as little as £4.50 – half the price of the cheapest legal product – while counterfeit 50g packs of RYO could be purchased for as little as £5.00 – around one-fifth of the price of the genuine product. Research conducted for JTI revealed that a quarter of cigarettes and half of RYO tobacco consumed last year in the North West was not subject to UK taxes. HMRC Fraud Hotline (0800) 788887


December 2020


Republic Technologies’ most successful NPD launch ever – a selection of six filters from the Swan brand – has provided a solution for cash & carries and retailers to offer choice, quality and a range of menthol flavours and formats, “enabling people who used to smoke menthol cigarettes to transition to roll-your-own”, says general sales manager Gavin Anderson. Cool Menthol Extra Slim, Cool Burst Crushball and Fresh Burst Crushball are the three filters in the selection with a menthol profile. “We know that former menthol cigarette smokers have been looking for suitable alternatives with a similar flavour profile since May – and turning to retailers for advice and guidance on making this transition,” adds Anderson. Filters are the star performers in the convenience tobacco accessories market. They are worth almost £74 million and are growing at 9.7% year-on-year in convenience (IRI), more than double that of the total accessories market and six times more than the next best sector – papers, which are up by 1.6% (IRI). In the papers category, Republic Technologies has increased its focus on environmentally-friendly NPD; its offering includes OCB Virgin Slim and OCB Virgin Slim & Tips, which are unbleached papers with OCB natural gum sustainably sourced from African Acacia trees. “As tobacco legislation continues to impact on cigarette sales, accessories continue to outperform the total tobacco market, with better value for money than factory-made cigarettes remaining a key consideration for RYO smokers,” comments Anderson. Currently, approximately three-quarters of all tobacco accessories’ sales are in the convenience channel, equating to over £229 million annually, up 3.4% year-on-year (IRI). Changes in people’s shopping habits during the pandemic have contributed to this growth, with consumers shopping more frequently in local convenience stores.

Vaping & next-generation products Throughout December, JTI is offering wholesalers 62% profit on return across its Logic EPIQ range, which was expanded earlier this year to encompass both nicotine salts and High VG 70/30 e-liquids. The nicotine salt range includes Peppermint and Berry Mint flavours, while the High VG 70/30 liquids include Mint Royale. Sales of heated tobacco products have increased by 270% in the UK in the last 12 months and by 100% since the start of 2020 (IRI). To capitalise on this growth, JTI has entered the heated tobacco category with the introduction of Ploom S, initially in London. Available in three colours with an rsp of £89, it is to be used exclusively with EVO tobacco sticks. These use microground and fine-cut tobacco and come in four flavours with an rsp of £4.50.









The UK launch of Ploom follows successful launches in Japan, Russia and Italy. Ploom offers smokers an alternative but familiar tobacco experience by heating tobacco instead of burning it, explains the company. Nick Geens, head of reduced risk products at JTI, comments: “It is predicted that by 2025 there will be nearly one million Ploom users nationwide and that traditional retail will contribute to two-thirds (67%) of this volume. Ploom provides an exciting opportunity for retailers across the capital to maximise a huge sales opportunity by stocking all four EVO tobacco flavours.” IQOS, from Philip Morris, has become the UK’s No.1 product in the smoke-free category (Nielsen). Christian Woolfenden, managing director at Philip Morris in the UK and Ireland, comments: “We’re now seeing real success with IQOS in the UK. But, with almost seven million smokers in the UK (Office for National Statistics), there’s more work to be done to help those who


December 2020


would otherwise continue to smoke switch to less harmful alternatives. “Thousands of local convenience stores already stock IQOS and our HEETS heated tobacco sticks, and we’re now seeing increasing numbers of national retailers looking to meet customer demand in this growing category.” HEETS is now available in a Teak variant – a toasted tobacco blend with nutty aromas – taking the UK range to eight options. The market share of HEETS in the UK, among cigarettes and heated tobacco sticks, has tripled in the last 12 months, reports the company. Philip Morris is aiming to build distribution of IQOS and HEETS next year. Kate O’Dowd, head of field force, says: “PML’s commitment to our growing community will continue throughout 2021. We are increasing our field force to expand into new regions and cities across the UK – supporting more retailers to stock IQOS and HEETS, providing a better choice for adult smokers who would otherwise continue to smoke CCM cigarettes.”

For further information: Imperial Tobacco (0117) 963 6636 JTI UK (01932) 372000 Philip Morris 020-7076 6000 Republic Technologies (01494) 492233






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