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NEW YEAR INVESTMENT: HANCOCKS TO OPEN KENT BRANCH

THE BUSINESS MAGAZINE FOR CASH & CARRY/DELIVERED WHOLESALERS

Henderson wins trio of contracts

Regulatory negligence ‘Shocked’ Coral Rose slams lack of support

Bidvest 3663’s Andy Benn goes under the spotlight ALL THIS INSIDE...

4Carbonates 4PMPs 4IT focus 4Seasonal special

JANUARY 2015


Contents

January 2015

This month don’t miss... 06

14

32

Thomas Ridley moves closer to £70 million turnover target.

Andy Benn talks celebrity chefs, cookery schools and Formula 1.

Lighting up the market: WKD unveils Vegas-inspired packs.

ESSENTIALS 05 06 32

Product of the month

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Editor’s Comment Industry News Products & Promotions What’s new this month?

FEATURES 12

Special Report Brand owners felt the wrath of Country Range’s Coral Rose at the Tower of London last month.

14

Spotlight featuring Andy Benn, Bidvest 3663’s food development manager.

OPINION 16

Employment Law Uncovered! The true implications of drink-driving convictions and the lasting effects.

18

Country Range supplier awards review: Ilfracombe Foodservice md Mike Watson may have stolen the show during his memorable trophy presentation, but it was Coral Rose’s speech that left everyone talking.

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07

Legal Advice Columnist Helen Jenkins reveals her top 10 tips to avoid commercial conflict.

CATEGORY INSIGHT 19 22 26 34

Carbonates IT Update Price-marked Packs Seasonal Confectionery

Festive cheer: Appleby Westward celebrates a strong Christmas sales performance.

Cracking confectionery: time to scrap the Christmas hampers and re-stock for Easter.

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January 2015

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[ EDITOR’S COMMENT ]

How was it for you? y the time you read this Leader (and, hopefully, the rest of Cash & Carry Management), Christmas will be a faded memory and all thoughts of the top C&C/wholesale executives – particularly the marketing men – will be on executing post-festive plans. We all know how the top retail chains – food and fashion – fared over the holiday period because the figures were freely available, either distributed by the companies themselves to the media or by their well-paid PR agencies. But those wanting to know just how the major C&C operators and delivered wholesalers performed will again have been disappointed. Yes, with a bit of persuasion, you might have obtained a terse comment along the lines of: “We did encouragingly well and our targets were exceeded.” What does that mean? Pretty well nothing really. If this secrecy stretches to not letting the trade know what the targets were and by how much they were beaten, then saying nothing whatsoever would be far better. You won’t hear just after Twelfth Night how impactful the Booker improvements were because the company would have been preparing to disclose any indicators in its third-quarter results – which are due on 15 January. It’s highly unlikely the results will allude to any specific suppliers or brands in any of the major product categories.

B

Similarly, you won’t find Bestway telling all and sundry that it sold 50 cases more this year of Johnnie Walker Red Label than it did in 2013 or Parfetts revealing that sales of Cracker Barrel cheese were up by 30%. And why couldn’t we hear about increased footfall for this busy time (no, not coming a cropper outside the pub!). Talking of Bestway, whose plans for the Co-op Pharmacy are eagerly awaited, trading figures seen by Cash & Carry Management for big rival Lloyds Pharmacy show that it was that company’s most successful Christmas trading performance for seven years, with sales growing by 19%. Something for Bestway to take on board. Meanwhile, the nearest anyone came to breaking the ‘no comment’ stance about festive period performance was Appleby Westward, the SPAR southwest wholesaler – and that was perhaps because the figures made good reading in the light of disappointing profit returns last year for the Saltash-based operator. Just for the record, the company managed an overall sales rise over the festive period of 7% and a bit less than that for own-brand products. Why can’t others be just as open? Or are the results such that they would not wish to share them with outsiders?

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 £52 a year or £5 per copy. Overseas yearly subscriptions are priced at £80. 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 Fax (01342) 712101 Publisher Winlove Publications Ltd EDITORIAL Managing Editor Kirsti Sharratt News Editor Mervyn Gilbert Editorial Assistant Michael Catling ADVERTISING AND MARKETING Publishing Director Martin Lovell Media Sales Manager Clare Phillips 4,560 July 2013-June 2014 Audit Bureau of Circulations Printed by Bishops Printers ISSN 1352-254X All media rates and feature lists can be accessed online by visiting: cashandcarrymanagement.co.uk

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

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January 2015

05


[ INDUSTRY NEWS ]

Thomas Ridley expands Ambitious target for E Anglian operator. Thomas Ridley Foodservice has added around £2.5 million to its £45 million annual turnover by taking over the Elveden Food Hub business near Thetford, Norfolk. Within five years, the target is to reach £70 million. The Bury St Edmunds member of Country Range Group describes itself as ‘a logistics expert, providing comprehensive and reliable distribution for customers with a service level second to none (measured cases ordered v cases delivered),

running weekly at just shy of 100%’. Thomas Ridley director Rachel Summers told Cash & Carry Management that the company would implement “the tried and tested Thomas Ridley Foodservice model to source, stock and distribute local and regional products”. The takeover gives Thomas Ridley access to the Elveden and Tastes of Anglia distribution network, augmenting its existing one-stop shop for retailers, restaurants, garden centres, farm shops, delis and food halls throughout the east and south-east. Said Summers: “We will

manage the integration of the Elveden and Tastes of Anglia operation into our business and champion local and regional producers of food and drink. “We will also strengthen and broaden the fine food range, deliver efficiencies and ensure an increase in service levels.” Elveden’s customers will also have access to the 10,000 products already stocked by Thomas Ridley, including ambient, fresh, chilled, frozen, fine food, professional hygiene and catering sundries. a Thomas Ridley & Son (01359) 270536

Two into one in Hull Hull is the latest location for the Booker/Makro integration programme. At present, the two operators are trading at their respective sites: Booker in National Avenue and Makro at St Andrew’s Quay. Probably in March or April, the Makro unit will incorporate various aspects of the Booker business and the Booker C&C will close. The Hull development joins similar ones that have taken place in Sheffield, Preston, Belfast and three in London (Enfield, Charlton and Park Royal). a Booker (01933) 371000

NI deals

Ready to deliver across East Anglia.

Top executives at SWA conference Several leading trade figures have already been confirmed as speakers at the Scottish Wholesale Association’s annual conference, which takes place at Crieff Hydro, Perthshire, from 12-14 June. The event, which will have the theme of ‘Evolution’, will include papers given by Booker Group chief executive Charles Wilson, Country Range Group managing director Coral Rose, Blakemore Wholesale md and Landmark Wholesale chairman Sam Wilcox, and 06

January 2015

Booker’s Charles Wilson.

Filshill md Simon Hannah. The line-up also includes Ryan James, chairman of Glasgow Restaurant Association and owner of three

www.cashandcarrymanagement.co.uk

restaurants under the Two Fat Ladies brand, and former Nisa retailer Anx Patel of GoKart, which has created an app that allows retailers to order directly from suppliers and wholesalers via a tablet or smartphone. SWA president Asim Sarwar said: “While we are still building our 2015 conference programme, it is gratifying to be in a position to confirm at this stage that we have secured the services of such top-flight speakers.” a SWA 0131-556 8753

Northern Ireland wholesaler Henderson Foodservice has secured three new contracts, worth a combined £2 million per annum. They are for fresh food to pub owner Downey Group and Care Circle, which operates 12 nursing homes, and meat to the Mount Charles Group, which supplies catering services to the business, healthcare, education and retail sectors. a Henderson Foodservice (028) 9034 2342


[ INDUSTRY NEWS ]

Rochester next for Hancocks

Weigh-out lines are a big draw at all branches.

Confectionery C&C operator Hancocks is moving to previously untapped territory in Rochester, Kent – its 21st branch. Situated close to a Booker depot, the new outlet opens on 1 March on the Airport

Industrial Estate, a mile from junction 3 of the M3. A former Comet electrical store, the Hancocks depot will offer around 5,000 branded and own-label lines. Manager of the new branch is Chris Griffiths, who

was previously in charge of Hancocks’ Liverpool C&C. He is planning a number of opening promotions. Chief executive officer Mark Watson commented: “This is a great location for us and we cannot wait to open and get trading. Our research indicates great potential in this area of Kent. The M3 will ensure ease of access to the cash & carry. “We expect to draw customers from the immediate towns in addition to many coastal areas further afield, where there is a great demand for a wide range of confectionery.” a Hancocks C&C (01509) 216644

Seasonal SW growth for SPAR South-west SPAR wholesaler Appleby Westward, which distributes to nearly 300 symbol stores, has reported good trading figures for Christmas and the new year. New managing director Mike Boardman (right) said that like-forlike sales over the two weeks rose by 7.24%, with particularly strong growth in SPAR own-brand – up by 6.67%. “Our strategy of driving

own-brand sales, with additional tactical promotional activity through our telesales department, is delivering positive results.” Boardman added that the whole festive period was very competitive for the convenience sector, “but our retailers were able to enjoy very strong additional promotional activity, which contributed to the overall sales growth.

“We are continuing with our strategy of ensuring that SPAR stores strengthen their offer in fresh foods, including meal solutions, produce, meat and poultry.” Some £2 million has been set for retail development. Another 11 south-west stores are expected to be trading under SPAR in February. SPAR Group South Africa last year bought an 80% stake in Appleby Westward’s parent, BWG. a Appleby Westward (01752) 854000

Twin contract for Bidvest 3663 Bidvest 3663 this month undertakes a new contract to deliver branded and ownlabel food to two businesses operating within WSH (Westbury Street Holdings): Holroyd Howe and BaxterStorey.

Holroyd Howe supplies outsourcing services to schools, while BaxterStorey offers a front-of-house package to such customers as ITV, Tottenham Hotspur FC and Sainsbury. Tim Adams, Bidvest

3663’s director of customer development, said: “We have a flexible offer, making it easier for these companies to get the products and support they need.” a Bidvest 3663 (0370) 3663 000

Salmon: ‘We need the right people with the right attitude and the right skills.’

Mentors wanted Following the success of its mentoring programme in 2014, the Scottish Wholesale Association is seeking further applicants for this year. It wants to hear from members who have identified an ambitious senior manager or other person within the business who would benefit from developing his or her skills. Prospective mentees will probably be working in buying, sales or management. The SWA’s executive director Kate Salmon told Cash & Carry Management: “We need the right people, with the right attitude and the right skills to create a truly world-class industry in order to remain ahead of the game.” The mentoring scheme is again being facilitated by the SWA’s training partner, 121 HR Solutions. a Scottish Wholesale Association 0131-556 8753

Brakes listing Swedish bakery Almondy has secured a listing with Brakes for its new glutenfree Cadbury Chocolate & Almond Cake and Philadelphia Almond Layered Lemon Cheesecake. a Brakes Group (01233) 206000

www.cashandcarrymanagement.co.uk

January 2015

07


[ INDUSTRY NEWS ] Advice on waste Brakes and WRAP (formerly known as Waste Resources Action Programme) have combined to create a series of online videos to offer advice to chefs on reducing food waste. The films, produced in the wholesaler’s kitchens, cover fish, meat and vegetables. Brakes’ environment & sustainability manager Ken Mulholland said: “The new videos offer caterers lots of easy-toexecute practical tips for making savings.” a Brakes Group (01233) 206000

Financial role MHP Communications, of London W1, has been appointed by Palmer & Harvey to advise the wholesaler on financial and corporate affairs. This does not affect P&H’s existing arrangement with Myriad PR, of Ely, Cambs, to handle trade press communications. a P&H (01273) 222100

Cash prizes SPAR UK’s new ‘Shop & Win’ promotion offers a cash prize of £500 each day, as well as other incentives to mobile phone users, including instant prizes and money-off vouchers. Suppliers participating include Coca-Cola, Mars, Heineken, Molson Coors and Muller. a SPAR UK 020-8426 3700

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January 2015

Alcohol scheme welcomed Registration could provide ‘a massive boost’ for legitimate traders and taxpayers. A new registration scheme for alcohol wholesalers could be a ‘massive boost’ for legitimate traders and taxpayers, according to the Federation of Wholesale Distributors. The Alcohol Wholesaler Registration Scheme (AWRS), which will be included in the Finance Bill 2015, is intended to stamp out duty evasion on beers, wines & spirits, which is estimated to cost the Treasury £1.3 billion a year in lost revenue. Originally proposed by the Federation, the new scheme will require any business that trades in alcohol in wholesale volumes to undergo stringent tests to ensure it is operating within the law. Licensed retailers will also be required to demonstrate that their alcohol products are sourced from registered wholesalers. FWD chief executive

James Bielby said: “This is a major step towards identifying rogue operators and restoring control of alcohol distribution to legitimate wholesalers. “We have worked hard to bring this issue to the Government’s attention, and although compliance with the scheme will place an operational burden on our members, it really is a shortterm pain for a long-term gain.” C&C/wholesalers will be required to register during a three-month application window from 1 October to 31 December, or face a penalty. HM Revenue & Customs will then undertake a programme of pre-approval visits from January 2016, over a 15month period. During that time, it will remove the right to trade in alcohol from any trader failing the AWRS ‘Fit and

Bielby: ‘Long-term gain.’

Proper’ criteria. From April 2017, C&C/wholesalers will be required to display a unique reference number on all invoices involving alcohol, and to provide it upon request to anyone purchasing from them. Retailers will be expected, through an online register, to make regular checks to ensure a C&C/wholesaler’s fit and proper status has not changed. a Federation of Wholesale Distributors (01323) 724952

Enhanced foodservice offer From this month until the end of February, Bestway Batleys Foodservice is running an enhanced ‘Price Hold Guarantee’ for its catering customers. It has produced one brochure for pubs, restaurants and hotels and another for cafés and fast-food operators. Category manager Rachel Hartwell said: “Foodservice is constantly evolving. At BBF it is all about meeting and beating our customers’ expectations. “Our January-February offers are jaw dropping, covering over 280 core catering

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lines. We have benchmarked prices across our competition.” Previously a quarterly

activity, Price Hold Guarantee will now be available six times a year. Hartwell explained: “This is so that we can react more quickly to changes in the industry and still offer the best prices across foodservice.” The revamp follows an extensive range review of branded and own-label lines for BBF customers, resulting in new foodservice products, including a range of frozen fish and ‘indulgent’ desserts under the Essentially Catering banner. a Bestway Batleys Foodservice (01738) 646666.


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[ INDUSTRY NEWS ]

Burnley operator grows

Choudrey honoured Bestway Group chief executive Zameer Choudrey received an honorary doctorate in civil law from the University of Kent at a ceremony held in Canterbury Cathedral. The presentation was in recognition of his contribution to services to public life and business. Choudrey graduated in accountancy from the University of Kent in 1981 and joined the C&C/wholesaler in 1984 as financial controller. He has been CEO for 10 years. On receiving the award he said: “To be recognised for one’s achievements in life is always extremely gratifying. It is fantastic to see how the university has flourished and continues to be a centre of excellence with an outstanding reputation internationally and domestically.” a Bestway Group 020-8453 1234

Chocolate bar Today’s Group has launched its first own-label chocolate bar – Today’s Select Milk Chocolate (100g). With a price-mark of 59p, it offers retail customers 35% POR. The chocolate, containing 30% cocoa solids, comes in cases of 28. a Today’s Group (0844) 247 0700 10

January 2015

Birchall Foodservice, a leading member of Country Range Group, has this month moved from its depot (22,000 sq ft) and offices in Hapton, Burnley, to the nearby Burnley Bridge Business Park. The third-generation, family-owned company now occupies the 64,000 sq ft Cobalt House, part of an estate located at junction 9 of the M65. The delivered wholesaler, which currently has a staff of just over 100 and operates 24 vehicles, has doubled its warehouse capacity, making it better equipped to service customers throughout the north of England and north Wales. The new freehold premises include a modern demonstration kitchen as well as an exhibition/training centre. Managing director Colin Birchall, who became CRG chairman just over a year ago after stepping down from his role as the organisation’s md, said: “Having our own in-house training and

Colin Birchall (left) with wife Christine, daughter-in-law Louise and son Justin.

exhibition facility will set us apart from our competitors. “It means we will be able to host training events covering subjects of interest to caterers, and suppliers will be able to showcase the latest product innovations to our customers. “The space will also allow us to expand our product offering substantially, putting us on the same footing as the biggest players in the

catering industry.” Moving into the purposebuilt warehouse will also enable Birchall Foodservice to expand into fresh foods, with a range of meat, fish, fruit and vegetables. The company, which has a turnover of £20 million, also has depots in Wrexham, Durham, Sheffield and Stafford. a Birchall Foodservice (01282) 429446

More online for wholesaler Blakemore Wholesale achieved 42% year-on-year growth in online sales for September and October. Commercial director Russell Grant said: “We are always looking at new ways to engage customers and our online sales growth has exceeded all expectations. “Initiatives such as click & collect and our customer e-newsletter and text services have supported this growth, along with the increasing level of interest in our website, Facebook and Twitter accounts. “Retailers are seeing the

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Grant: ‘Click & collect has supported growth.’

benefits of utilising technology. We are committed to

serving their needs further with the launch of a new online ordering platform over the coming months. “This will greatly improve the shopper experience and provide a wealth of additional features that will make it easier for retailers to do business with us and, in turn, grow their own sales.” The Wolverhamptonbased company, which operates 14 cash & carry and delivered depots, is the largest member of Landmark Wholesale. a Blakemore Wholesale (01902) 371515


[ INDUSTRY NEWS ]

Concentrating on delivered Caterway UK, a member of Landmark Wholesale, is selling its 800 sq metre Leeds depot and integrating business from that branch into its main Nottingham site (1,300 sq metres). Managing director Rob Atkinson told Cash & Carry Management: “Leeds has been operating for some years as a dual-purpose depot. “We decided that we could not do both delivered and cash & carry well and that the best avenue for us was delivered-only. We did not see ourselves as C&C experts. “The Nottingham site will now include a trade counter with a click & collect service. Funds from the Leeds sale will be injected into the main operation.” The company has a fleet of 18 vehicles that deliver up to North Yorkshire and south to Northampton – a throw-

Rob Atkinson and his father Ray.

back to the time when the business also had a delivered unit in Leicester, which was closed 10 years ago. “We expect to hit sales of around £7 million in the year to April,” said Atkinson. Caterway also has two delivered depots in Spain (Alicante and Malaga). “They were opened by us,” said Atkinson, “because we already had wholesale customers in that country selling to the likes of cafés

and fish & chip shops run by ex-pats.” A former lawyer, he and his father Ray bought the Caterway business – established in 1937 – eight years ago. Rob Atkinson has also just been appointed to the Landmark Wholesale board, along with Sony Bihal, md of Time Cash & Carry in Barking, Essex. a Caterway UK (01623) 515812

Two in new year activity Landmark Wholesale’s ‘biggest ever £1 promotion’ in January features more than 100 products. And Bestway Group is running a January deal offering up to 80% profit on return on more than 300 Best-in lines. The Landmark campaign combines brands such as Andrex, Walkers, Pedigree, Heinz and Tetley with the group’s own-label range, including Lifestyle Value foil, teabags, chocolate and kitchen towel. Dubbed ‘All You Need for a £1 Attack’, the activity is the first of several category and own-brand promotions planned for this year. There is a £30 cashback incentive

for Lifestyle Express retailers. “We want to help independent retailers fight back against the discounters and supermarkets,” said Chris Doyle, business development director. The Best-in ‘Family Fortune’ promotion includes impulse, grocery and nonfood products. The label, which has been undergoing a rebadging process over the past 12 months, now has over 95% of its range in the new livery, including dual price marking and traffic light nutritional information. Category manager for own-label Nick Brown said:

“Our research has identified that the key target audience for Best-in is mums shopping locally for their families. Everyday essentials make up the majority of the family of products, and these are the ones that are included in our January promotion. “Family Fortune is the first of a series of own-label activities planned for 2015, including taking Best-in into new product areas and exciting competitions and promotions for customers.” The Family Fortune promotion ends on 31 January. a Landmark Wholesale (01908) 255300 a Bestway Group 020-8453 1234

Fund-raisers Confex has completed another in its annual series of ‘Challenge Events’ for charity. This time it included a team of suppliers, staff and members cycling and walking through the peaks and dales of Derbyshire. They raised nearly £5,000 for The Alzheimer’s Society, Contented Dementia Trust and Cancer Research. The group also made a £10,000 donation to Springfield School in Witney, for children with learning disabilities. The money was put towards the cost of buying a minibus. David Lunt, Confex’s senior business development manager, also raised funds by running several marathons. a Confex (01608) 652333

HT diversifies Today’s Group member HT & Co Drinks, of north-west London, has acquired 50% of Blackpool-based Gift Creation & Design, which specialises in alcohol and food gift packs. Sanjay Thakrar, a director of the cash & carry operator, along with his cousin Sagar Thakrar, have a joint share in the business with Gift Creation & Design chairman Mike Brennand and his brother David. The plan is to venture into the wholesale and independent retail trades. a HT & Co Drinks 0208965 2428

www.cashandcarrymanagement.co.uk

January 2015

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[ SPECIAL REPORT]

‘Unacceptable!’ Rose slams suppliers Manufacturers bear the brunt of Rose’s disdain after several fail to support new packaging regulations.

By Michael Catling Editorial Assistant Country Range awards review anked as the sixth most popular worldwide attraction in 2014 and with a history spanning over nine centuries, the Tower of London is widely regarded as one of the most iconic landmarks in Great British history. It is little wonder, then, that Country Range’s supplier awards evening drew a record turnout last month, as nearly 200 member and supplier representatives were afforded exclusive access to Her Majesty’s Royal Palace and Fortress. As if a private viewing of the Crown Jewels were not enough, guests were wined and dined in the New Armouries suite. Talk about added value! Yet for all the quintessentially British regalia and wealth on display, it was managing director Coral Rose’s ceremonial speech which paid homage to the castle’s past incumbents and addressed the deficiencies of Country

R

Range members’ suppliers. Citing the launch of an allergen support website to help caterers comply with the new EU Food Information for Consumers Regulation, Rose (pictured below) spoke of her “frustration” at a lack of support from several suppliers. “The CRG support website enables caterers to search for your brands by allergen content but I have been shocked by the poor response of brand owners to the new regulations,” explained Rose. “We are giving caterers access to information on your products that they can’t get from you. “We have our own successful foodservice brand and we take this responsibility very seriously. We wish some of our larger suppliers would do the same.” It was a rebuke that showcased Country Range’s commitment to become “the

Tower of London stat: AttractionTix.co.uk

Supplier award winners Marketing Excellence Unilever Food Solutions Business Relationship Unilever Food Solutions Service Performance Clarebout Newcomer of the Year Kings Quality Foods Own Brand Supplier of the Year Finlays Frozen Supplier of the Year Whitby Seafoods Branded Supplier of the Year Nestlé Professional Special Award Bill Powell (Single Serve)

12

January 2015

foodservice wholesaler of choice for independent caterers”. With former managing director Colin Birchall watching from afar, it was also a perfect illustration of Rose stepping out of her predecessor’s shadow. A light-hearted awards presentation, hosted by Ilfracombe Foodservice managing director Mike Watson, mitigated the sombre atmosphere, as Unilever Food Solutions celebrated double success in the Marketing Excellence and Business Relationships categories. But with Rose’s rallying cry lingering in the air, there was a sheepish look among the supplier representatives as the evening concluded under a cloud. As one guest quipped, people have been locked in the White Tower for less. At least on this occasion, Rose was a little more CCM forgiving!

FOOD INFORMATION REGULATION EXPLAINED Under the new legislation, caterers must declare any of 14 identified allergenic ingredients (see below) used in non-pre-packed or loose foods. 1. 2. 3. 4. 5. 6. 7.

Cereals containing gluten Crustaceans Eggs Fish Soybeans Milk Nuts

8. 9. 10. 11. 12. 13. 14.

Celery (including celeriac) Peanuts Mustard Sesame seeds Sulphur dioxide (>10mg/kg) Lupin Mollusc

To help provide consumers with full transparency, Country Range has launched an interactive platform (www.crgsupport.co.uk). Running in conjunction with the group’s existing K2N nutritional software, the tool enables caterers to search by product, brand or allergen type, and uncover relevant allergen information from a foodservice supplier database.

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[ SPOTLIGHT ]

sponsored by

Andy Benn, Bidvest 3663’s food development manager If you were able to retire tomorrow, would you? Yes. I’d get a smallholding and spend time with my family, producing all the food we need myself. From bacon to sausages right through to honey, I would live off the animals and the land. What advice would you give someone starting his/her first job? It’s about three things: patience, perseverance and positivity. The people who don’t get by in the catering industry expect to be able to accomplish certain standards instantly because that’s the perception they’ve taken from celebrity chefs on the television. In reality, it takes years of dedication and a lot of patience.

From the Army to F1 to Raymond Blanc What has been the major milestone or turning point of your career? During the two years I was running the officers mess with the 1st Battalion Royal Gloucestershire, Berkshire and Wiltshire regiment, I cooked for the Duke of Edinburgh and came second in the Army Centenary Culinary Cup. It was then I realised I could go beyond making basic dishes. The turning point was when I left the Army and was offered the job of head chef for Jordan Grand Prix at Formula 1. This move to the civilian world meant I wouldn’t be pigeonholed as a military chef. Who has been the biggest inspiration to you? I worked with Raymond Blanc for two years at Maison Blanc as a food development manager. Raymond’s knowledge, passion and beliefs in food were an inspiration to me and indeed anyone in the catering industry. On occasions when I had to cook for him, he’d taste the dishes and instantly tell me how to improve them with just subtle changes and additional ingredients. 14

January 2015

How do you maintain a work/life balance and how have developments in technology affected this? It’s about making a conscious effort to give the people in your life who matter the time that they deserve. This has been a lot easier since I joined Bidvest 3663. Whilst I work hard and sometimes long hours supporting customers with innovation, recipes and menu development, after 25 years as a chef I’d got used to working unsociable hours and being away from home. Developments in technology mean I can be anywhere in the UK and be able to address an issue over the phone. However, when I’m with my family (he is pictured above with his young daughter Annabelle) it’s important to be able to switch off. What most frustrates you in business and in life generally? Bad manners, in business and in life. In the kitchen, some people can give rude feedback, which hasn’t been thought out, and it shows a lack of respect. Being polite and courteous will get people far in life.

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What type of business would you go into if it wasn’t C&C/wholesale? I wouldn’t mind having my own cookery school. I think there is a huge market out there to teach everybody to cook, from giving children the confidence to produce healthy meals rather than relying on a microwave, to helping an older generation cook wholesome meals. If you had a million pounds to invest, how would you spend the money? I would buy a large piece of land on the west coast of Scotland, open my own cookery school and produce my own stock. Recently I’ve experimented with producing my own bacon; it’s difficult to get the cure right and I’d love to have CCM more time for that kind of thing.

Recipe for success Andy Benn joined the Army at the age of 17 and trained as a chef. After 14 years he left to work as a chef in Formula 1, holding positions as operations manager and head chef for different teams. After that, he moved into food development and worked for Moto Hospitality and Maison Blanc. In December 2012, he joined 3663 in the new role of food development manager.


[ EMPLOYMENT LAW ]

The lasting effects of a drink-driving conviction Meet the HR expert Cate Ritchie, 121 HR Solutions Cate Ritchie is a fellow of the Chartered Institute of Personnel and Development

iven the changes to the drinkdriving limits introduced in Scotland on 5 December, a rise in drink-driving convictions is expected. So what are the implications of having an employee with a drink-driving conviction? Depending on the field in which the employee works, a drink-driving conviction may have a significant impact on their employment. If they are working in a role which requires them to drive as an essential part of their job – a driver, for example – or if they are caught over the limit in a company car or the incident occurs during the hours of employment, there will be grounds for dismissal. The idea that an employee may be caught over the limit in a company car is likely to become a reality as the police step up roadside checks for drivers

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travelling to work “the morning after”. Judges frequently impose driving bans on drunk drivers. Indeed, disqualification is mandatory for some offences (driving or attempting to drive when under the influence) and discretionary for others (in charge of a vehicle when under the influence). Therefore, as an employer, unless you genuinely have an alternative role for the employee, there is no obligation to retain the employment. The rules of some professional associations stipulate that criminal convictions must be declared. In extreme cases, this may mean being disbarred

from the association. Therefore, if it is a requirement that your employee is a member of a professional association, it is a good idea to check their rules in the event of an employee receiving a conviction. This, too, would justify dismissal if the role requires membership. Many employers conduct criminal background checks by asking applicants to consent to a Standard or Enhanced Disclosure of convictions and cautions recorded. This means that a drink-driving conviction will show up each time a Disclosure is applied for. It is worth outlining to employees the implications of a drink-driving conviction on their employment, particularly where the role requires the employee to CCM be available to drive!

121 HR Solutions provides employers of all sizes with professional, cost-effective human resource support. If you need further guidance about drink-driving convictions, an adverse weather policy or any other HR issue, contact Cate at cate@121hrsolutions.co.uk or phone (0792) 121 3890.

Whatever the weather, ensure your business runs effectively Unfortunately, travel disruption can affect an employee’s ability to get to work on time or in some cases at all. Employers and employees alike should consider how this may affect resourcing and how to treat absence. Here are some points to remember: Employees are not automatically entitled to pay if unable to get to work because of travel disruption. There is no legal right for staff to be paid by an employer for travel delays (unless the travel itself is constituted as working time or in some situations where the employer provides the transport). If you apply discretion in respect of payment to staff who are absent or

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late due to adverse weather, make sure that it is consistent. Think carefully about being discretionary as it is very easy to set a precedent and therefore an expectation that, even if staff are unable to travel to work, they will be paid! A more flexible approach to working hours and location may be the solution, particularly if you have received a weather warning. You should also consider issues such as alternative working patterns or asking those who can cover at short notice to do so. It is worth doing an audit of who can walk to work and using those people as the “core team” in the event of adverse weather. Technology, such as laptops or

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smartphones, could be useful in allowing a business to run effectively if staff are absent from work, and providing access remotely in advance may ensure that disruption is kept to a minimum as key staff are set up at home for emergency working. Even if businesses are damaged by the effects of absent workers, they should still ensure that any measures they take in respect of not paying for absence or taking disciplinary action are carried out according to proper and fair procedure. Consider implementing an adverse weather policy and think about how to handle future scenarios.


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[ LEGAL ADVICE ]

Top 10 tips for avoiding a commercial dispute 7. Consider insurance Make sure you are covered for your potential liability where you have an obligation in a contract or where you cannot negotiate the protection you need from your supplier.

Meet the legal expert Helen Jenkins, Legal Edge Helen Jenkins is a legal counsel to small and medium businesses

nyone who has witnessed the turmoil and cost of a commercial dispute will tell you that hindsight is a wonderful thing. By the time it is over they know what they could have done to avoid or minimise the risk in the first place. Here are my top 10 tips for avoiding commercial disputes:

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1. Know your customer or supplier Check the credibility of customers and suppliers before you start trading with them. Are they creditworthy, can they meet their financial obligations or do they have a history of involvement in litigation? Check accounts and do credit searches to avoid bad debtors. 2. Determine where the biggest risks are and allocate resources to them You may not have the time or resources to review every purchase, supply or deal, but keep an eye on those that expose you to potentially larger liability. For example, what will it cost you if a supplier doesn’t keep to a particular delivery deadline? Consider and plan for this eventuality.

8. Have an effective complaints policy This policy is key to avoiding disputes with customers or suppliers but only if it is effective. Get your information and communication process right. Do customers know who to contact, where and when?

4. Get products and services right Put in place quality checks and audits to monitor the quality of your goods and services before they are delivered, including product recall and disaster recovery plans to minimise harm when problems do occur.

9. Encourage a speak-up culture Nipping problems in the bud can help avoid disputes in the first place. Encourage employees to tell you about issues as soon as they arise so that you can deal with them before the problems escalate. A ‘no blame’ culture and informal staff forums will help uncover issues before they even happen.

5. Have written terms that make sense This sounds simple, but it is the root cause of many disputes. You may agree to ‘make payment in three weeks’ time’. But what are you paying for? How much is payable? When does the time period start? The clearer the wording, the less room there is for argument. If you don’t understand a written term, or it doesn’t say exactly what you think you have agreed, then don’t sign anything until you are happy that it does.

10. Have ongoing reviews There is no point following steps 1 to 9 if you don’t regularly review what is happening and ensure the process is maintained. Why not have a dedicated resource by delegating responsibility to someone in your business? There is nothing more aggravating than phoning a complaints line that doesn’t work. Don’t let that happen to your business!

‘Encourage employees to tell you about issues as soon as they arise so that you can deal with them before the problems escalate’ 3. Identify informed decision makers Put in place a simple process. Identify who has the authority to make decisions about supplies, sales and other risks and tell your staff about it. Having the right people reviewing and making business decisions brings with it the ability to identify and weed out problematic commitments before they are made. 18

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6. Watch out for foreign laws If you buy goods or services from abroad, watch out for contract terms that say that disputes will be resolved abroad under foreign law. If a problem does arise, you may not have the protection you thought you had and it can be more expensive and time consuming than dealing with a dispute in the UK.

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In next month’s article, Helen Jenkins will examine what you should do if you cannot avoid a dispute and how to manage it with minimum disruption to CCM your business.

Legal Edge are a team of senior and experienced consultant lawyers who help companies reduce and manage legal risk. They can help you identify legal issues and provide practical and commercial solutions. For more information, please contact Helen Jenkins at helenjenkins@legaledge.co.uk.


[ CARBONATES ]

Making the right call In light of new government regulations and pressure from health groups, the carbonated soft drinks category has become flooded with new propositions as healthy drinking habits look set to take centre stage in 2015. But with retailers mindful of limited shelf space, wholesalers face the unenviable task of determining which products to push or pull. lans to work even closer with wholesalers have been announced by Britvic Soft Drinks. The company intends to put a strong focus on nurturing innovation through bespoke digital activity and striking depot displays and incentives. Britvic reports that Pepsi recorded double-digit growth in the wholesale channel across all pack formats in 2014 compared to 2013, with MAX Cherry accounting for a quarter of all MAX sales in the wholesale channel between September and November 2014. Jonathan Gatward, GB marketing director at Britvic, believes consumer confidence and brand loyalty has been driven by the company’s commitment to offer visible value for money. This has been exemplified by two-litre, 600ml and 330ml packs displaying a £1.69, 99p and 49p price point respectively for the last three years. “We have also worked to ensure the right case size for wholesalers,” says Gatward. “Across our 500ml and 600ml PET range, all flavours are now available in a 12-pack to help support retailers with smaller chillers or stock-rooms.” An estimated 27% of Britvic’s business in Great Britain goes through the wholesale channel, and Gatward predicts that this will only increase as the company drives growth in the impulse, foodservice and licensed sectors. “We’ve invested increasingly in ‘pull’ activities, including retail and symbol club promotions, to help generate new business,” says Gatward. “We’ll continue to work closely with wholesalers specialising in licensed and foodservice to ensure there is the right

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amount of feature and display space on core packs in depot.” Britvic has unveiled an integrated marketing and advertising campaign for 7up Free entitled ‘Feels Good To Be You’ to showcase the brand’s new visual identity and originality. Supported by print, out-of-home and social media activity, the campaign includes two global TV commercials and several digital vignettes starring original, everyday personalities who exemplify the brand’s authenticity. The multi-channel promotion, which will run throughout 2015 across more than 140 countries, also promotes 7up’s new logo and packaging redesign.

Post-Christmas dieting CBL Drinks urges wholesalers to reflect the growing demand for zero-sugar carbonates over the winter months, as more consumers look to reduce their calorie and sugar intake following the festive season. To help cater for the ‘big night in’ trend, CBL Drinks recently introduced its own range of sugar-free carbonated soft drinks (rsp £1.50). Available in Dandelion & Burdock, Cream Soda, Sarsaparilla, Lemonade and Ginger Beer variants, the two-litre Zack’s Classic Soda range caters for small independents that are restricted by space. To help maximise sales, Maurice Newton, sales & marketing director at CBL Drinks, recommends using bay branding to direct customers to the relevant aisle, with each product clearly blocked within sub-categories to enhance clarity and ease of purchase.

Soft drinks remain the second best performing category across FMCG, behind only beers, wines and spirits (Nielsen).

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January 2015

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[ CARBONATES ]

Did you know? Coca-Cola has been named the official sponsor of the Rugby World Cup 2015.

Growth of lighter options Striving to be different Coca-Cola Enterprises (CCE) reports that product innovation continues to be a key driver of growth for carbonated soft drinks, with a focus on choice, convenience and meeting the needs of an increasingly health-conscious consumer. An estimated 40% of all carbonated soft drinks sales come from light or diet variants, with sales worth over £1 billion to retailers in 2013. This figure is growing by 2.5%, according to Nielsen, with Coca-Cola Life generating strong distribution levels and positive feedback from retailers since its launch in August. The popularity of lighter options is reflected by 9.8% growth across Coca-Cola Zero, which is close to becoming a £100 million brand at retail, reports Dave Turner, trade communications manager at CCE. Sales of low-calorie energy drinks rose to £72.6 million in the year to 5 July 2014, amounting to a 19% increase – nearly three times the 6.6% rate of value growth of regular versions, he says. “This indicates a growing desire from shoppers for low and no-calorie energy variants, and this is set to continue going forward,” Turner told Cash & Carry Management.

All data unless otherwise stated: Nielsen

Exotic energising NPD accounts for 3.2% of the £1.9 billion impulse soft drinks market, with Lucozade Ribena Suntory responsible for 49.8% of all NPD sales (MAT w/e 21 June 2014). Although reduced sugar and healthier options currently represent £1.7 billion of total soft drinks revenue, up 5.8% year on year, Lucozade advises wholesalers to capitalise on the popularity of exotic flavour combinations, which are growing at 8.3% year on year. Since permanently introducing Lucozade Energy Pink Lemonade in 2013, the product has amassed a 28% repeat purchasing rate and contributed 6% to total energy growth. Georgina Thomas, category director at Lucozade Ribena Suntory, recommends that stores stock limited-edition lines to “deliver incremental sales and attract new users”. This corresponds with the excitement generated by Lucozade Energy ‘The Brazilian’ Mango & Mandarin, which achieved £4.6 million retail value sales within the first five months of being launched. 20

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AG Barr has pioneered a new category in the energy drinks market by combining two of the fastest growing soft drinks categories – flavoured energy (up 10%) and flavoured water (up 9%) – to create Rockstar Energy Water. Available in two variants, Blueberry, Pomegranate & Acia and Peach, the new drink comes in 355ml cans. A total of 85% of consumers said they would buy both of the products (Face Research), which contain 50% less sugar and calories per 100ml than the standard 500ml Rockstar Energy cans. Packaged in outers of 12, Rockstar Energy Water is supported by a digital and social media campaign, plus sampling activity at Rockstar-sponsored events. Elsewhere, AG Barr has sought to strengthen KA’s position as the UK’s number one flavoured Caribbean carbonate by releasing the UK’s first sparkling sour cherry drink. Available in 49p price-marked 330ml cans and 89p 500ml PET bottles, it aims to capitalise on the 40 million-plus cherry drinks being sold each year in the UK. “KA drinkers are trend setters who crave new and unique flavours,” says Adrian Troy, head of marketing at AG Barr. In a survey, 84% of shoppers said that they would purchase the product (LVQ Research). “KA has consistently grown every year for the past decade, with over 47 million KA drinks consumed in the last year,” states Troy. Explaining the decision to introduce two pricemarked variants, he cites a 2011 study by him!, which revealed that 76% of “wholesalers and retailers thought a PMP improved a store’s price image”. He adds: “Shoppers now expect promotions as a key part of their hunt for value, with 58% buying more CCM when products are on promotion (IGD).”

For further information: AG Barr (01204) 664295 Britvic Soft Drinks (0845) 758 1781 CBL Drinks 0191-516 3300 Coca-Cola Enterprises (0845) 722 7222 Lucozade Ribena Suntory 020-3727 2420


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[ IT UPDATE ]

Tools to boost competitiveness C&C/delivered wholesalers continue to invest in IT that offer benefits across their business. sed by more than 150 wholesale and cash & carry businesses across the UK and Ireland, the Sanderson wholesale IT solution Swords is renowned for its capability to improve warehouse efficiency, stock control and visibility of operations, while boosting sales and profitability. The software also reduces administrative overheads, improves customer service and strengthens operations for future growth. The latest developments to the Swords system include Mobile CRM, which elevates customer service levels and improves staff productivity away from the office, and Web Ordering, which gives wholesalers an extra sales channel. Longstanding customer Barry Group recently added Sanderson Web Ordering, Radio Frequency WMS (RF) and Customer Relationship Management (CRM) functionality with great success. The Swords solution has dramatically improved picking efficiency, increased sales and enabled Barry Group to deliver a premium service to its customers. To support its expansion into the chilled distribution market, Barry Group engaged Sanderson to provide a solution for managing the complexities of the chill chain. Sanderson was pivotal in launching the company’s new chilled distribution business through the development of highly visual, user-friendly and efficient web-ordering portal Beacon (Barrys Easy Access Central Ordering Network), which offers customers a three-day order turnaround time.

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Placing orders on the web portal could not be easier or more convenient for customers, using tablets supplied by Barry Group, which raises the orders via the Swords system. Working with third-party distributor Cuisine de France, the orders are processed the next day at its chill facility and delivered the following morning. The Sanderson system interfaces with Cuisine de France’s own ERP system and autoconverts transactions into purchase orders, so the orders can be picked and dispatched, with each link in the chain monitored for a smooth service. “Customers love using the Sanderson web portal,” says Barry Group’s head of IT Peter O’Sullivan. “The system is always accessible and it’s much easier for our customers to 22

January 2015

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raise orders now. The web solution is also completely responsive, so it works on any mobile device. That flexibility is a huge benefit.” He continues: “We’ve also won some significant new business on the strength of our chill offering.” The interactive interface enables staff to advise customers on the latest ‘must stock’ items, and crucially to upsell with sections designated to promotions. Barry Group has also achieved efficiencies in other areas using the Swords system. “The Sanderson solution handles stock control, logistics and central billing. It’s much more than just a warehouse management system,” explains O’Sullivan. “Alongside the CRM and Beacon portal, it controls our daily lives inside the warehouse, from goods in through to stock control, picking, packing, despatch and invoicing. “We wouldn’t have a chill business without Beacon, and we wouldn’t have Beacon without Sanderson,” he concludes. “It’s been a game changer for us. Beacon has become a onestop shop and the most visible way to interact with our customers.”

Click & collect solution STL Technology Solutions, which recently appointed its technical director Mark Vasey to its board, has launched a wholesale-specific Click & Collect solution. ‘Badged’ as the wholesaler’s site, customers log on via a standard web browser on any PC or mobile device, then place an order while reviewing up-to-date price and promotions. STL Click & Collect can provide handy reminders regarding a customer’s normal shopping list, and it can suggest complementary, season-specific or alternative items. Once the order has been completed, STL’s software posts the information directly into the wholesaler’s order processing system and informs its picking team so they can prepare the order by the customer’s agreed collection time. Meanwhile, Soho Cash & Carry has implemented the Business Intelligence (BI) solution that STL released in 2014 for wholesalers. This will enable Soho to extract more information from its IT systems, initially in sales and inventory. Based on the Profitbase cube accelerator and MS SQL server analysis services, STL BI is seamlessly integrated with STL Merchandise Management Software. It is designed to give wholesalers dozens of measures, key performance indicators and actionable information through either rolebased web dashboards or MS Excel-based reports. Parfetts has purchased 70 imaging-based scanners from STL. The Datalogic scanner can recognise damaged, partially obscured or poorly printed codes, plus it accommodates sweep and presentation scanning techniques. With no moving parts, the scanner is sealed from dust, and there is less to wear out or generate noise. Furthermore, NCR till users can even run it from powered USB ports.


Integrated software for Delivered  Wholesale and Cash & Carry operations Sales Order Processing Purchase Order Processing Fully Integrated Financials Business Intelligence  Web Trading Stock & Warehouse   Management Till Order Processing Rep & Van Sales System

Call: 024 7655 5466 Visit: www.sanderson.com/swords Email: info@sanderson.com


[ IT UPDATE ] ‘Wholesaler data must be usable and capable of interrogation’ “It is a mystery to us why suppliers buy some wholesale data,” says Tanya Pepin (below), director of The Whole Sale Company. “This may seem a strange point of view considering that our company helps suppliers use the wholesaler data that they purchase and integrate it into their sales strategy. However, it is all about value. “The last couple of years have seen wholesaler data provision rolled into terms to a degree, so arguably suppliers get it come what may. But this can be seen as discretionary spend that could just as easily be transferred to a major promotion or other trade initiative. “The sad truth is that the vast majority of wholesalers view data as an income stream rather than a means of enhancing the supplier relationship by developing true, measurable fact-based business plans. To gain this income, the data must at least be usable and capable of interrogation. “There is now a lot of independent sales in data available from wholesalers, although there is admittedly still a gap in the on-trade. Suppliers may need to buy the data from the

Company-wide improvements BCP customer CFC Food Partners is claiming company-wide improvements in operational efficiency from its investment in BCP’s Accord distribution system. Based in Wakefield, CFC is a rapidly growing foodservice wholesaler supplying cafes, sandwich bars, colleges and hospitals across north-east England. It provides a wide range of ambient, chilled and frozen foods, plus a selection of nonfood items, and it specialises in sandwich fillings. The investment was prompted by CFC’s wish to improve efficiency, particularly relating to stock control and telesales, as a foundation for expansion. Existing operations were largely manual and paper-based, with limited IT functionality. “We had been struggling for a while and having to work hard to make up for the limitations of our existing system,” says Shawn Giles, managing director of CFC. “We realised that a sector-specific solution would make life a whole lot easier and, if we chose carefully, would scale up to meet our needs as we grew.”

biggest players but they are probably due to implement some quality control in the middle order. Excel sheets with no historic perspective and uncleansed data with multiple iterations of skus and suppliers just don’t cut it. Similarly, data where suppliers can’t see the category, individual companies or depots is little more than a ‘nice to know’ which they could probably have worked out from their shipment data anyway.” At the bare minimum, says Pepin, a supplier needs to: know its performance versus the category over a number of timeframes versus previous years. see how each segment, such as ecommerce/delivered/ retail club/symbol group/C&C, is performing if the wholesaler has a multi-faceted offering with specific supplier investments. see all skus in the category in order to make category and space plans as a ‘category captain’. see what has driven any difference in its performance compared to the category as a whole (which regions/ depots/customer groups/skus). “Ideally, a supplier also needs to be able to track activity to see what investment brings the best results,” says Pepin. “In the end, the wholesaler must have a coherent supplier data policy if it is to continue maximising income in this area.”

• • • •

Following a thorough selection process, CFC chose the Accord foodservice system because of BCP’s food and drink industry background, consistent track record of successful implementations and Accord’s powerful functionality. Giles comments: “It was as if the system had been designed especially for us. Its rationale and functionality mirrored our business model.” CFC has achieved efficiencies across its business as it benefits from a fully integrated, powerful IT solution that controls all operations and delivers true visibility, improved reporting and key sales, product and buying information. Particular improvements have come in telesales/sales order processing, replenishment and stock management. Since the initial implementation of Accord, which has helped boost service levels to 98%, CFC has extended its use to manage another foodservice depot in Hull on behalf of a charity, making use of Accord’s powerful multi-depot functionality to manage operations at both locations. Giles concludes: “Accord has delivered even more functionality than we had expected. BCP itself has given us an A* service – it is always prepared to go that extra mile.” CFC plans to extend its use of Accord, and longer term will look at implementing Voice Picking and online ordering to give further efficiencies and customer service improvements. CCM

For further information: Business Computer Projects 0161-355 3000 Sanderson (0333) 123 1400 STL Technology Solutions (0844) 472 4727 The Whole Sale Company (01296) 711011

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[ PRICE-MARKED PACKS ]

The rise of the savvy shopper Despite years of opposition and suppliers battling to convince retailers that incremental sales will offset tighter margins, price-marked packs are growing in value across a wealth of categories as cost-conscious consumers seek added value and reassurance. he emergence of discount stores and savvy shopping tactics has redefined the retail buying experiences, according to IGD, as bargain hunters seek added transparency and clarity from pricing and promotional deals. In a recent survey, 37% of retailers said that the availability of PMPs has a strong influence on their choice of wholesaler, with 30% of shoppers admitting that they would be more likely to buy a product on impulse if it is a PMP (him!). In the crisps and snacks category, 73% of all sharing snacks now sold in independents weigh 132g or less – 75% of which are price-marked. Kettle Chips, the UK’s number one premium crisp brand, is currently outperforming the total impulse market, according to Nielsen, with its price-marked single-serve and sharing bags contributing to increased trial and consumer loyalty. Jim Couchman, head of impulse at Kettle Foods, comments: “Price-marked packs can positively influence the value perception of convenience stores, building consumer trust and achieving improved rates of sale.” Kettle Chips’ range of smaller price-marked sharing bags is designed to enable price-sensitive retailers to capitalise on 31% growth of the sharing category over the last two years. Couchman highlights Kettle Chips 100g PMP variants as “ideally placed” to combine the strength of a top sharing snack brand with the value proposition of a smaller pack format, at a £1.29 price point. He adds: “Consumers continue to entertain at home more as a result of the state of the economy, and for such occasions tend to buy more premium products.” To help convenience retailers “uptrade consumers at lunchtime or when snacking on-the-go”, Couchman (below) recommends Kettle Chips 40g bags (59p PMP), which are now permanently available in shelf-ready cases of 18. To drive retailer trial, Kettle Foods is offering branded PoS material, including bus stops and pallet wraps, and advising C&Cs to utilise offshelf displays.

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All data unless otherwise stated: Nielsen

Did you know? Kettle Chips is ranked inside the top 10 single-serve snacking products in the convenience channel.

Single price point Kellogg’s has strengthened its PMP portfolio by introducing a new single price point across 11 cereal boxes. A £2.19 flash will now feature on packs of Frosties (375g), Coco Pops (295g), Rice Krispies (340g), Corn Flakes (500g) Crunchy Nut (375g), Special K Original (300g) Special K Red Berries (300g) Kellogg’s Variety Packs, Fruit & Fibre (375g) Bran Flakes (500g) and Krave Choc Nut (375g). Nick Dawson, UK sales director of specialty channels, says: “We know retailers don’t have elastic shelves and having a single price point gives them clarity on what they should stock and provides a consistent message which makes merchandising their range much more simple.” Supported by a TV advert and a multi-media campaign, the PMPs display a new promotion for personalised spoons, which consumers can claim when they purchase three boxes of Kellogg’s cereals. Elsewhere, Kellogg’s has introduced two new pricemarked cans of Pringles to the convenience channel, a move which Dawson claims will “drive incremental sales in store”. The Cheese and Onion and Prawn Cocktail variants – which boast a combined estimated value of £84 million in the convenience sector (Nielsen) – are available in cases of 6 x 190g tubes.


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[ PRICE-MARKED PACKS ] Convenient consumption

Demonstrating value

KP Snacks has targeted “significant incremental retail sales in the nuts category” by introducing a selection of £1 PMPs across its best-selling flavours of KP Nuts, the UK’s number one nuts brand. Available exclusively to convenience and independent retailers, the KP Nuts £1 PMP handy packs are available in cases of 12 in Original, Dry Roasted, Spicy Chilli and Salt & Vinegar variants. Matt Collins, trading controller for convenience at KP Snacks, comments: “Nuts for £1 are growing at an impressive 19% year on year in impulse and, as the nuts market leader, our new £1 PMP is a fantastic way to offer loyal consumers great value for their money.” Retailers can also take advantage of special deals that are being offered through key wholesale accounts, including a ‘two for £11’ case promotion. KP Nuts is over five times bigger than the next branded competitor in impulse and Collins urges wholesalers to stock the top four flavours that shoppers demand.

Increasing excise duty rates, coupled with adult smokers seeking greater value, have made PMPs a popular option for both the trade and consumers within the tobacco category. “We’ve heard from some retailers that they are questioning the value of PMPs after the display ban but, actually, we anticipate this will be precisely the time when PMPs will be most needed to demonstrate best value and increase adult smoker loyalty,” says Richard Wood, acting head of business development at BAT. “Not being able to see every product and price on the gantry may increase mistrust for an adult smoker, meaning that they don’t think they are getting the best price for their product.” BAT currently boasts a 9.3% cigarette market share, led by 3.5% growth across its Rothman value range (Nielsen). To help boost the attraction of its Cutter Choice range, BAT has upgraded the third largest UK RYO brand by introducing papers and a resealable pack format. Designed to help maintain freshness for longer, the new features provide “more value in every Cutters Choice pack” – a key component in a customer’s decision making, claims brand executive Harry Barnes.

All data: Nielsen

Enhanced engagement

Spending vigilantly

An estimated one in three packs of cigarettes sold in the UK are price-marked, with 47% of adult smokers claiming that they will always buy PMPs if available. Boasting a market share of 2.54% in the economy price sector, Imperial Tobacco’s Lambert & Butler Family range has recently benefited from the introduction of £6.50 and £6.55 price-marked packs of King Size and Superkings variants respectively. Greg Fuller, head of route to market at Imperial Tobacco, believes PMPs have a “vital role to play in achieving a positive price perception, customer loyalty and repeat business”. To support the on-shelf visibility of PMP packs, Fuller (below) recommends using Imperial Tobacco-branded sticker tabs to draw attention to all promotions. This should be supplemented by staff education schemes and PoS material, such as posters, floor mats, freestanding display units, counter units and shelf strips, to help engage with customers within the tobacco display area, says Fuller.

Boost Drinks has announced that its PMP range encountered “huge growth” during 2014, led by a “phenomenal rate of sugar-free sales” and a 35% increase in turnover across 500ml PET bottle products versus last year (October YTD). Soft drinks are currently ranked as a top-five category by independent retailers, according to him! research, with 77% stating that Boost is a ‘must stock’ item. Managing director Simon Gray attributes Boost’s success to its product investment and pricing strategies, with three new variants and targeted PMP activity, including the new 50p Sport range and the £1 one-litre bottle, helping to overcome barriers to growth. He comments: “PMPs have been a big part of our growth strategy and have really delivered for us. Consumers love the value, and PMPs definitely work as a tactic for attracting new drinkers of Boost.” Gray (right) highlights the influence of health campaigns as a contributory factor in Boost’s total sugar-free sales growing by 70% in volume since being launched in 2012.

All data: ITUK estimates


[ PRICE-MARKED PACKS ] Susan Nash, trade communications manager at Mondeléz International, believes it is “critical every customer notices a PMP or promotional material”, with 68% of shoppers claiming that they don’t see confectionery while in store (Kraft Foods). Nash advises cash & carries to relay the importance of using PoS displays in high traffic areas to maximise impulse purchasing, while also using EPoS data to measure the success of PMPs to avoid overloading categories.

Visual refresh Price crunch Swizzels has overhauled its core range of £1 PMPs and Loadsa Bags by introducing a new packaging design. Building on the success of its Squashies range, which has grown by 59% year on year – more than any other sweets brand (Nielsen) – the packs feature the new Swizzels branding and are part of a “high impact and modernised” look for 2015. This follows the announcement that a Drumstick Bubblegum Lolly variant will be added to Swizzels’ ‘Flashback to 10p’ selection. Available in February, the bubblegum variant displays a 10p price point and aims to tap into the gums & jellies category, which accounts for 44% of total kids’ sugar confectionery sales (Nielsen). Sarah-Louise Heslop, marketing manager at Swizzels, says: “As a single coin purchase, the 10p range is perfect for all consumers as a low-cost treat or pocket money essential.” Similarly, Tangerine Confectionery has extended its Candyland range by releasing a mini bon bon product, pricemarked at £1. Available from February, Candyland Refreshers Fizz Balls packs contain four flavours – Lemon, Lime, Orange and Raspberry – and replicate the original Refreshers artwork, with classic branding and coloured swirls.

Bahlsen, which is growing by 23% year on year in the UK, has announced plans to expand its Pick Up!, Choco Leibniz and Hit portfolio with a series of strategic product innovations and promotions over the next 12 months. To help boost its 0.5% market share in the £2.7 million UK biscuit market, Bahlsen has introduced a new Hit Chocolate 135g pack, price-marked at 69p. In keeping with its commitment to offer premium skus at an affordable price point, 220g bars of Hit Chocolate and Hit Vanilla now display a £1 price mark and are also available in cases of 12. Bahlsen trade marketing manager Julien Lacrampe comments: “Bahlsen has worked to rationalise the range, filtering out slower moving skus and replacing them with new products with simplified pricing and significantly higher sales potential for depots and retailers alike.” This corresponds with the addition of a new white chocolate variant (£1.29 rsp) to the Choco Leibniz range, with snack-pack boxes of four and a counter-top display unit set for release in February. Bahlsen’s revamped brands, which are also available in plain packs, will be supported by a significant marketing investment throughout 2015, as well as engaging PoS material to help create an aesthetically pleasing display for cash & CCM carry customers.

All data unless otherwise stated: Nielsen

Marketing hotspots Mondeléz International reports that wholesalers and retailers can benefit from great advantages when it comes to stocking PMPs in the confectionery sector, with 97% of chocolate singles consumers stating that they would buy a product displaying an on-pack price point (him!). The number one reason for purchasing on impulse is incentivised by a deal or promotion, according to CTP Tracking Programme, with one-third of shoppers describing clarity and transparency as the major benefit of PMPs (IGD). Last year, Mondeléz International introduced £1.29 PMPs of Cadbury Dairy Milk with Oreo and Cadbury Dairy Milk – a strategy designed to capitalise on shopper excitement across its co-branded innovations.

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For further information: Bahlsen (01923) 728500 BAT 020-7845 1000 Boost Drinks (0113) 240 3666 Imperial Tobacco (0117) 963 6636 Kellogg’s (0800) 626066 Kettle Foods (0800) 616996 KP Snacks (0845) 601 7583 Mondeléz International (08702) 400861 Swizzels (01663) 744144 Tangerine Confectionery (01977) 692500


[ PRODUCTS & PROMOTIONS ]

Viva Las Vegas as WKD lights up RTD category with vibrant variant PRODUCT OF THE MONTH

SHS DRINKS – Britain’s leading RTD brand WKD has set its sights on replicating the success of its Brazilian limited-edition range by launching a Las Vegas inspired variant. With rsps of £4.99 and £2.99 for a 275ml four-pack and 70cl bottle respectively, WKD Vegas replicates the same price points as other WKD variants and will be available until December 2015. In keeping with the American theme,

the WKD logo on bottles has been transformed into a Vegas-style sign, while the four-pack and case outer graphics convey the neons associated with the Vegas Strip to create high impact stand-out on-shelf. Debs Carter, marketing director for alcohol at SHS Drinks, says: “The success of WKD Brazilian limited edition this year, which generated approaching £1.5 million worth of sales,

has demonstrated that there is a real appetite amongst consumers for limited editions from WKD.” The launch is supplemented by a social and online digital media campaign, consumer sampling, tailormade wholesale and cash & carry activity and introductory price promotions. Meanwhile, free-standing display units and free Vegas-themed PoS kits will be distributed to stores to enhance visibility. Consumer awareness will also be driven at point of purchase via neck labels asking ‘Have you tried new WKD Vegas?’ on 70cl price-marked bottles of WKD Blue, WKD Red and WKD Iron Brew. These will be available exclusively to the wholesale, cash & carry, convenience and independent retail sectors. All data: Nielsen a

SHS Drinks (01452) 378555

Top of the class

Beverage lovers

Triple-choc twist

MONDELÉZ INTERNATIONAL – BelVita, the UK’s number one healthy biscuit (Nielsen), has announced a new BelVita Tops range, featuring Choco Hazelnut and Strawberry flavours. Backed by a £2 million marketing investment, which includes TV, radio, digital, out-of-home and sampling activity, both variants are available in packs of 5 x 3 biscuits, rsp £2.79. Ranked as the number three BelVita sku in France (Kantar), BelVita Tops received “great feedback” in consumer testing, reports Mondeléz. a Mondeléz International (08702) 400861

KERRY FOODSERVICE – DaVinci Gourmet has developed a selection of indulgent recipes to help operators “reflect the romance” of Valentine’s Day on menus. The White Raspberry Sweetheart, Chocolate Strawberry Valentine and Vanilla Lover’s Latte recipes are designed to offer an inexpensive solution to help increase spend from consumers who may not want a dessert. Mintel research shows seasonal occasions are strongly associated with indulgence, with consumer spend reaching almost £1 billion last year. a Kerry Foodservice (01784) 430777

BURTON’S BISCUIT COMPANY – The second largest UK biscuit supplier has reinvigorated its Cadbury biscuit barrel favourites by introducing new pack designs and names for three products. Cadbury Wheaties, Shorties and Rich T’s, which are available in £1 PMPs, have been redesigned using category-generic names, vibrant colours and playful icons to increase standout. The range, which is worth £1.6 million according to Nielsen, is benefiting from increased household penetration year on year (Kantar). a Burton’s Biscuit Company (01727) 899700

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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


[ SEASONAL CONFECTIONERY ]

Seasonal egg-stravaganza The Christmas rush may be over, but the confectionery category has undergone a major facelift for spring 2015 as brands battle for supremacy ahead of the shorter Easter season. ith the post-Christmas blues setting in and the decorations stuffed away in boxes for another year, shop owners are being urged to rearrange their seasonal aisles hastily to capitalise on the second biggest confectionery event of the year. Easter confectionery sales grew by 12.5% in 2014 (IRI), with several categories experiencing double-digit growth, including adult eggs (up 46%), seasonal impulse (41%) and kids eggs (16%). Leading the call for wholesalers to “stock up now for Easter” is Mars Chocolate UK, which has unveiled a raft of new pack formats across its Maltesers, Celebrations and Galaxy brands. Easter is currently worth 10% of the annual chocolate spend (Nielsen) and Mars has announced that the MaltEaster Bunny will be returning for a seventh successive year, supplemented by pre-filled PoS material and a £1.3 million TV advertising campaign, displaying the strapline: ‘Catch them while you can!’. The range, which features the returning MaltEaster Bunny Single, Mini Bunnies bag and five-pack multipack, with rsps of 62p, £1.29 and £2.39 respectively, also includes a MaltEaster Campervan gift pack (rsp £4.99) – a new addition for 2015. To help site products off shelf and in high footfall locations, Mars has distributed a MaltEasterbranded clipstrip. Tony Lorman, retail excellence director at Mars, advises wholesalers to relay the importance of stocking Easter ranges earlier, “ideally straight after Christmas”, while also grouping Easter egg sizes together and in seasonal and confectionery aisles for added convenience. To conclude its new product investment, Mars has expanded its large egg format by introducing a Celebrations variant, retailing at about £5.69. A three-pack format for Galaxy Caramel filled eggs (rsp £1.19) has also been added, alongside a prefilled PoS display unit for 245g Celebrations boxes (rsp £3.31).

UK Easter specialities category: top five confectionery manufacturers

W

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180

Value sales (£m)

160

159.3 144.0

140

Easter 2014

120

Easter 2013

100 80 60 39.6

40

41.2 28.8

35.9

28.1

33.1 15.5

20

Mondeléz International

Mars

Private label

Lindt & Sprungli

17.3

Thorntons

Graph data: Nielsen Scantrack (14 weeks to w/e 26.4.14)

Burton’s Biscuit Company has introduced Cadbury Creme Egg Biscuits for the second year running, following an “extremely successful” Easter launch last year. Obtainable until Easter Monday, the limited-edition line (rsp £1.79) is supported by in-store PoS, including shippers and gondola ends, and is available in shelf-ready packs of 12. Ranked as the number one special biscuit by Nielsen, Cadbury Creme Egg Biscuits delivered a £2.92 million retail sales value between January and April 2014.

Spring cleaning Mondeléz International has unveiled a multi-million pound marketing investment, supplemented by several NPDs, to help maintain its status as the UK’s number one confectionery manufacturer during the spring season. The company recorded its most successful Easter on record last year, accounting for 24% of all confectionery sales in the opening 109 days of 2014. Mondeléz attributes this success to its core brands, with Cadbury Creme Egg positioned as number one countline during the Easter season. Following the success of its Gooless promotion, which contributed to a 20% increase in Cadbury Creme Egg value sales across single and multipacks in 2014, Mondeléz has relaunched the campaign as part of a £3 million marketing spend, featuring TV, digital, PR, in-store and outdoor activity. The promotion, which runs until Easter Sunday, rewards every consumer who unwraps a gooless egg with a cash prize of up to £1,000. Retail outlets who sell a winning egg will also receive Mondeléz stock vouchers or Love To Shop vouchers to the value of the cash prize. Mondeléz has invested another £2 million in a marketing


[ SEASONAL CONFECTIONERY ]

campaign for Cadbury Dairy Milk Egg ‘n’ Spoon. Ranked as the biggest Easter NPD in the last three years, Cadbury Dairy Milk Egg ‘n’ Spoon has also undergone a packaging refresh, with a new outer case structure to enhance shelf standout. Elsewhere, Mondeléz has extended its Cadbury Mini Egg range, the second biggest Easter confectionery brand in 2014, by adding a 231g gift egg pack (rsp £4.99). The new variant is part of a wide range of new lines for spring 2015, including Bassetts Jelly Bunnies sharing bags (rsp £1.52), 25p price-marked and plain packs of Dairy Milk Freddo Sprinkles, and Cadbury Dairy Milk Caramel Thoughtful Gesture Egg (rsp £8.15). Mondeléz’s large egg range (rsp £6.15) also features two new variants – Cadbury Heroes and Cadbury Dairy Milk Oreo – and there is new artwork displayed across Cadbury Dairy Milk Buttons and Cadbury Dairy Milk Marvellous Creations shell eggs. As part of its new ‘Seasons Made Simple’ initiative, Mondeléz urges wholesalers to encourage retailers to “stock up early with self-eat products”, before focusing on “family sharing products and top-up shopping” towards the end of the season. Susan Nash, trade communications manager at Mondeléz, points to the success of Cadbury’s shell eggs, which accounted for seven of the top 10 skus in 2014, and advises stores to stock medium shell eggs from top-selling brands. To ensure ’mini seasons’ are not overlooked, Nash also recommends that wholesalers concentrate on the two

best-selling skus – Cadbury Milk Tray and Cadbury Roses. Valentine’s Day and Mother’s Day, which are worth £33.3 million and £31.5 million in value sales respectively, are “key to the success of the giving and sharing season,” says Nash. All data: Nielsen

New year, new look Nestlé Confectionery has announced an 80% overhaul of its Easter range for 2015, with more than a third of products featuring for the first time. To help tap into the £56 million mini-eggs segment, Nestlé has incorporated a new £1 price point on redesigned packs of Smarties Mini Eggs and Milkybar Mini Eggs. The variants, which grew ahead of the market by 23% and 18% respectively in 2014, are joined by Aero Bubbly Egg (rsp 65p), a new addition for 2015, which aims to exploit a gap in the market for a less heavy and indulgent impulse egg. According to Kantar, retail shoppers spend the most on Easter confectionery items within the kids added-value egg sector – £15.13 compared to a £10.43 market average. This was reflected by 15% growth across Nestlé’s children’s added-value novelties range in 2014. To help entice more customers this year, Nestlé has expanded its portfolio by introducing a Smarties Egg Hunt pack with an rsp of £3.99, alongside two new After Eight variants. Priced at £2.08 and £1.99 (rsp) respectively, the After Eight Bunny and After Eight Mini Bunny three-pack are joined by three new £3 skus – Matchmakers Mint Egg, Matchmakers Orange Egg and Nestle Crunch Egg. Meanwhile, a new Drifter Campervan Egg (rsp £5.61), Yorkie Giant Egg (rsp £7.49), Rolo and Munchies Tin Eggs (rsp £5.99 each) and Black Magic and Dairy Box premium eggs (rsp £9.99 each) have also been added to attract more affluent and older shoppers. To increase brand identification, packaging has been revamped across the entire giant egg range, with new designs also being displayed across several other lines. CCM

All data unless otherwise stated: IRI

For further information:

Mondeléz International accumulated a 67% market share in independents and symbols last Easter.

Burton’s Biscuit Company (01727) 899700 Mars Chocolate UK (01753) 550055 Mondeléz International (08702) 400861 Nestlé Confectionery 020-8686 3333

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January 2015

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