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JULY 2014



Booker aims for 400 stores with Family Shopper retail fascia Tobacco display ban: how to help pubs, clubs and restaurants Opportunities and challenges for Scotland’s wholesalers

Juices for the

Urban Jungle

More support pledged by CRG for independent catering firms



TO STOCK UP NOW, EMAIL info@refrescogerber.co.uk or CALL 01278 441600

Spotlight on Bestway’s group symbol director James Hall

The business magazine for cash & carry/delivered wholesalers


Who were the scorers? Promotions can be a lifeline for small suppliers, ensuring they stay in the black. For leading manufacturers, too, carefully constructed deals negotiated with supermarket chains and cash & carry/delivered wholesalers every three or four weeks can make a big difference to their annual results. Yet an even greater influence on the bottom line is major sporting activities, invariably supported by heavyweight advertising budgets designed to encourage consumer spending. Often, however, all the planning is mitigated by circumstances such as bad weather or disappointing home nation results. Particularly affected by this latter scenario was the football World Cup, which came – as far as England was concerned – to an inglorious end. How the pubs and retail and wholesale outlets were affected by the Three Lions failing to make their roar heard later in the tournament has yet to be assessed, but a more successful participation in the tournament would have motivated the nation to go out and buy more drink to celebrate. Meanwhile, Andy Murray’s earlier than expected elimination from Wimbledon, disappointing as it was, will probably have had a negligible effect on food and drink income. Certainly around the locality of the world’s major tennis tournament, the Booker C&C two miles away and nearby shops would have had their ‘net’ sales boosted.

Booker expects that 300-400 stores will sport the Family Shopper retail fascia within the next few years ... see p.4



legal advice


country range conference


supplier strategy




scotland: achievers


scotland: swa conference


scotland: swa mentoring


information technology


products & promotions




price-marked packs


Managing Editor

Kirsti Sharratt

News Editor

Mervyn Gilbert

Features Editor

Amber Aitken

Published by Winlove Publications Ltd PO Box 366 EAST GRINSTEAD RH19 4ZE

Editorial Assistant

Michael Catling

Tel (01342) 712100

Media Sales Manager

Clare Phillips

Fax (01342) 712101

Publishing Director

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Email mail.winlove@btconnect.com

4,565 July 2012–June 2013 Mervyn Gilbert news editor


ISSN 1352-254X

Cash & Carry Management is available on subscription at £52 per year (single copies £5). Overseas subscription: £80.

Cash & Carry Management

• July 2014 • 3

news IN BRIEF Bags more SPAR Scotland wholesaler CJ Lang & Son last year raised more than £70,000 for 32 local causes and charities. One of them was a playgroup in Tarves, Aberdeenshire, which benefited from the sale of single-use carrier bags at 2p each.

Base sauces Brakes has launched a range of base sauces in frozen pellet form. The varieties are white wine, red wine, spiced tomato and butter.

Charity ball GroceryAid’s summer candy ball raised more than £152,000 – enough to care for more than 100 beneficiaries in the coming year. Major sponsors of the event included Mars Chocolate UK, Mondelez International, Nestlé UK and Palmer & Harvey.

Fish fingers Country Range Group has introduced Gourmet Cod Fish Fingers (35g) in packs of 2 x 1kg.

Selley replaces Fisher Andrew Selley has taken over from Alex Fisher as chief executive of Bidvest 3663. Selley has been with the wholesale group for 15 years, with responsibility for Bidvest logistics and automotive logistics in the UK and for developing the foodservice business in the Middle East, Turkey, the Baltics and Spain. In his new role, he will oversee both the Bidvest 3663 and Bidvest Logistics operations. The company’s ongoing growth plans are now in the second phase, which includes a multi-million pound investment programme, with four new depots and an update of the UK infrastructure and IT systems. The four sites are thought to include the recently

Alex Fisher

opened 91,000 sq ft multitemp depot in Bicester, Oxon (Cash & Carry Management: March), which replaced discontinued units in Abingdon (Oxon) and Northampton. The company would not disclose at this stage where the other new sites will be. Fisher, who left the company last month, spent 23 years with Booker Foodservice and then Bidvest 3663.

Said a Bidvest 3663 spokesman: “Alex Fisher made a substantial contribution to our success, helping to build us into a leading player in foodservice wholesale distribution.” Tel: Bidvest 3663 (0370) 3663 000.

Brown is better! Brakes is in the process of replacing its white cardboard packaging with unbleached brown packs as part of its commitment to the environment. The wholesaler’s environment & sustainability manager Ken Mulholland said that using natural cardboard reduced the environmental impact of packaging by removing the bleaching stage from

Tobacco fine JTI has removed a gantry from Radia Superstore in Leicester after the two owners were each fined £1,000 for selling illegal tobacco.


Andrew Selley

• Cash & Carry Management • July 2014

the manufacturing process. All new packs now also display a picture of the product, making it easier and quicker to identify, whether in the customer’s store room or in the warehouse. Mulholland added: “The switch is an obvious choice as we’re making the supply chain more sustainable and making it easier for us and our customers to meet corporate, social & environmental responsibility (CSER) objectives w i t h o u t reducing the quality of our packaging.” Tel: Brakes Group (01233) 206000.

Booker aims high The Family Shopper retail fascia, introduced by Booker at the start of last year and currently used by 10 stores, could embrace between 300 and 400 in the coming years, said chief executive Charles Wilson. He was speaking after the announcement that in the 12 weeks to 20 June, the group’s overall sales, including Makro, rose by 3.8% (non-tobacco up 5.4%, tobacco plus 0.7%). Excluding Makro, the likefor-like total increased by 2.9% (non-tobacco up 3.6%, tobacco 1.7% higher). Wilson said that C&C customer numbers increased and sales were in line with expectations. It was also a good quarter for delivered wholesale. Tel: Booker Group (01933) 371000.



Foodservice gains Bestway Batleys Foodservice has secured new private and local authority business in recent weeks totalling £3m. In Plymouth it was given the contract for the Steve Bartlett Group, which includes a number of standalone bars and restaurants. BBF will be supplying drinks, ingredients and meat. In Cardiff, it has clinched several restaurant and bar deals in Cardiff Bay plus night spots in the Millennium Centre. As well as additional private sector business, it has been successful with local authority tenders, including

Irons: Varied new business.

NHS Maidstone, supplying two hospitals with chilled, catering and drink requirements following a threemonth trial period. The contract, which will

Frozen food wins Both Brakes and Bidvest 3663 were on the scoresheet at the British Frozen Food Federation annual awards ceremony. In the bakery and pastries section, Brakes took gold for its iced Victorian fruit cake and bronze for its cooked pork belly bites (new starter/buffet/appetiser) and third place too for its pulled

beef chilli in the main course/meal category. Bidvest 3663 collected bronzes for its cherry tomato & oregano focaccia (bakery/pastries) and its sticky toffee pudding cheesecake (dessert/confectionery). Tel: Brakes Group (01233) 206000. Tel: Bidvest 3663 (0370) 3663 000.

Landmark’s good start Landmark Wholesale, whose annual conference was held in Valletta, Malta, last month (next year it will be in Abu Dhabi), has recorded strong sales figures for May. Headed by cigarettes (up 15.5%) and licensed (6.1% higher), income rose by 10.4% compared with the previous corresponding month. Speaking after the event, managing director Martin

Williams said: “This is a terrific start to the year. We are delighted that we are achieving solid sales growth in every area. Members and suppliers are incredibly positive about the direction we wish Landmark to take. ”I am confident our focus on price, promotions and investment will ensure this great start continues throughout the year.” Tel: Landmark Wholesale (01908) 255300.


be serviced by the Batleys Gillingham depot, has a fouryear tenure. Darlington and South Ayrshire Councils have signed BBF to supply soft drinks to schools. The wholesaler’s senior contracts manager Steve Irons said: “The great thing about these new wins is that the companies coming on board are varied, proving that we are committed to sitting down and talking to customers about their individual requirements, rather than offering a standard solution.” BBF has also announced that its Price Hold Guarantee, which freezes prices for three months, has resulted in a 30% gain in catering sales over the previous corresponding period, while Essentially Catering, the own-label catering range, is moving ahead by a similar percentage. Tel: Bestway Batleys Foodservice (01738) 646666.

Heavy fine for Booker Booker Group has been fined £175,000, as well as having to pay court costs of £18,455, following the death last year of worker Annie Brennan at the C&C/wholesaler’s Avonmouth branch. She died after being trapped under a forklift truck in the C&C’s goods-in area. In a case brought last month by Bristol City Council and heard at the local crown court, Booker admitted a breach of health & safety regulations. It was stated that precautions were not in place at the time to protect pedestrians from moving vehicles or restrictions on people walking through the goods-in area while forklift trucks were in operation. Furthermore, staff were not required to wear high-visibility clothing. Tel: Booker Group (01933) 371000.

More than 4,000 The number of Bestway ‘affiliated’ stores has passed the 4,000 mark. The Best-one symbol chain, which has increased sales by 38% since the start of the year, now has 1,113 outlets, while the Xtra Local promotional club has 2,895 stores, with sales 29% higher. Director of symbol James Hall said: “The growth of our affiliated estate shows that retailers really do want to be part of – and benefit from – a major force in UK retail. “Retailers understand that aligning themselves with a symbol or retail club can have a major effect on their businesses. Consumers are

also benefiting as more and more promotions are being passed on to them. “In little over 12 years, Bestway has gone from having no presence in affiliated stores to becoming a major national branded player.” Tel: Bestway 020-8453 1234.

Hall: ‘Retailers and consumers benefit.’

Cash & Carry Management

• July 2014 • 5


Tobacco ‘ta’ The Federation of Wholesale smoking, as it is not seen by Distributors’ chief executive potential consumers, and James Bielby has praised the that removing identification Department of Health for would cause expense, delay excluding packaging not and confusion. used for sale to the conBielby commented: “In sumer from any standardthe previous consultation ised packaging requirements and in subsequent meetings for tobacco products. with ministers, we told the The announcement by Government that any revithe DoH, made as sion of the the Government tobacco packaglaunched a secing rules must be ond consultation based on firm on the adoption evidence that the of plain packagchanges will help ing, means that stop young peoboxes and packs ple taking up which are not smoking. seen by the con“ Pa c k a g i n g sumer will be used in the supBielby: Praise for the DoH. able to carry ply chain before brand names, the point of sale pricing details and clear cannot influence attitudes to information on the products. smoking, as existing tobacco The FWD has argued that display rules mean that only packaging in the distribution tobacco traders can see these chain cannot influence products in cash & carries.” young people’s attitudes to Tel: FWD (01323) 724952.

Imperial ‘baffled’ Following the start last month of a six-week consultation process on the Government’s proposals to introduce plain packaging for tobacco products, Colin Wragg, head of UK corporate and legal affairs at Imperial Tobacco, said: “We are baffled by the small window of opportunity the Government has given to respond to draft regulations.” The supplier “rigorously refuted” the Chantler Report findings that plain packaging would contribute to the Government’s public health objectives. He added that in Australia there was clear evidence that smoking prevalence had not decreased while illicit trade


Fish award for Brakes Brakes Group, which owns M&J Seafood, has been named as the Marine Stewardship Council (MSC) fish supplier of the year. In the first year that the awards have taken place in the UK, the wholesaler beat off competition from other foodservice specialists for its commitment to sourcing MSC certified products and promoting sustainable choices. Brakes, which claims to have been the first UK foodservice company to offer an MSC approved product in 2003, now stocks over 100 items with this certification. Natalie Phillips, the company’s category manager – fish & seafood, said: “This is a fantastic honour. We have continued to extend the

range and are absolutely committed to delivering MSC products to our customers.” Toby Middleton, MSC senior UK country manager, commented: “Brakes’ large range of MSC products comes from over six years’ commitment to expand its product range and provide its customers with certified sustainable fish and seafood. “This work has enabled schools, universities, contract caterers and independent business owners to make the most out of their own MSC certification and promote the sustainably certified seafood that they serve, by using the MSC’s blue eco-label.” Tel: Brakes Group (01233) 206000.

Wine manager ‘We refute the report findings’ – Wragg.

had risen by 20% since the introduction of plain packaging (KPMG). Wragg urged the trade to respond to the consultation and contact their MP on the matter. The consultation closing date is 7 August. Tel: Imperial Tobacco (0117) 963 6636.

• Cash & Carry Management • July 2014

Bill Creighton is Bestway Group’s new category manager for wines. His licensed trade experience has included working as wines & spirits buyer for McColl’s and as beers, wines & spirits buyer for Dhamecha C&C for four years. Commenting on his new job, Creighton said: “Wine is a category that offers real growth potential for Bestway’s and Batleys’ customers. In convenience, retailers are realising that

premium wines are the way forward, but many still need a little support on ranging and promotions. “In catering and foodservice I will be looking to add value to our current wine offering.” Group trading director Martin Race said: “Wine is a huge category and requires specialist category knowledge. It offers fantastic opportunities for growth.” Tel: Bestway Group 0208453 1234.




Tech Hub launched Sugro has announced the launch of its Tech Hub, a central system of unified data from its members’ depots. The first stage of the development was to create a library embracing 9,000 products with full data specification. This is refreshed daily and is available to Sugro members via the intranet. “The Tech Hub will provide additional technology solutions for our members and it will form the catalyst for commercial connectivity to customers and suppliers,” explained managing director Philip Jenkins. The library also allows: An interface into depot systems with a uniform key

element of data.

• Provision of an online depot for all members. • Provision of nutritional

and ingredient information (a legislative requirement in the future). An opportunity to use sales out data to meet future legislation (for example, tracking under the Tobacco Products Directive). By the end of 2015, Sugro hopes to connect all 74 of its member wholesalers into the Tech Hub. The group already offers online ordering to contract customers at a dedicated website: www.sugroonline. co.uk. Tel: Sugro UK (01270) 628728.

ITL deal to end Philip Morris is ending its distribution agreement with Imperial Tobacco. The arrangement, which dates back to 2001, will not be renewed after 2015. Speaking at the Scottish Wholesale Association’s conference, Philip Morris’s managing director Martin Inkster said: “Since we formed our partnership with Imperial Tobacco, we have developed our own capabilities. For example, in 2010 we started supporting key accounts with our own team and in 2011 we launched the value brand Chesterfield.” During this year and next, Philip Morris will establish direct sales, marketing and distribution arrangements with its trade partners. Addressing the wholesalers in the audience,

Inkster said: “We are already starting to call on customers and introduce ourselves, and as we move towards the end of 2015, we will work closely with you to transition our factory-made cigarettes (FMC) distribution from ITL to our new set-up.” This year, Philip Morris also plans to launch non-FMC products through an independent relationship with the trade. Developments include reduced risk products. “Philip Morris is the world’s leading tobacco company but a relatively small player here in the UK,” said Inkster. “However, it is a profitable market and there are significant opportunities for us. We will be looking for your support.” Tel: Philip Morris Ltd 0207076 6000.

Online ordering is already available to contract customers.

‘A strong partnership’ Mars Chocolate has reconfirmed its commitment to the wholesale industry. “With so much focus on supermarkets, are we taking you as wholesalers and your customers, the independents, seriously? I can see it from your side,” admitted vice president sales Jamie Dunning. “However, we remain absolutely commited to this sector. We want to see you thrive.” Speaking at the Scottish Wholesale Association’s annual conference, Dunning added: “We have responded reasonably well to the pricemarked pack issue. We continue to invest in field sales.” Singles represent 70% of


confectionery sales in wholesale. “We are seeing more confectionery consumed at home versus on-the-go, but does this mean the end of singles? Absolutely not,” said Dunning. “We need to find a way to grow takehome alongside singles – we need a much stronger credible take-home offer for you.” Mars is also working on display and the nutritional content of its products. He said: “Wholesale and confectionery has been a strong partnership for much of the last century and there are plenty of ways we can adapt to win for the future.” Tel: Mars Chocolate (01753) 550055.

• Cash & Carry Management • July 2014

Irn-Bru pop-up shop AG Barr has transformed seven containers in the Merchant City district of Glasgow into a pop-up shop selling Irn-Bru merchandise. To coincide with its sponsorship of the Commonwealth Games, the soft drinks supplier is selling various quirky items, including Irn-Bru onesies, ‘Fanny’ fridge magnets, and posters

depicting some of the cheeky advertisements for Irn-Bru. The shop, which will open for four weeks during the Games, will raise funds for Glasgow’s Hospice’s Brick by Brick Appeal. All postoperating profits from the shop will be donated to the fund. Tel: AG Barr (01236) 852400.




Record, but wholesale flat Irish delivered wholesaler, foodservice operator and retailer Henderson Group increased its profit by 17.5% to a record £18.4m in 2013 on sales 3.6% up to £642.8m. However, group finance director Ron Whitten described profits from the wholesale division alone as ‘flat’. The family-run, Malluskbased concern owns the SPAR, EUROSPAR, VIVO and VIVOXTRA franchises in Northern Ireland and supplies over 400 stores. Over the year it continued to reinvest with a capital outlay of £23.1m, developing the existing portfolio as well as acquiring the freehold of seven more stores. Henderson also bought an additional warehouse adjacent to its headquarters to support continued growth,

Paddy Doody (left) and Ron Whitten.

particularly in fresh foods. A further £13.4m is being spent this year on existing refurbishment and acquisitions. Whitten said: “Last year we saw a record trading performance in a busy marketplace. We are committed to improving our value proposition to our wholesale and retail customers.”

Banging the drum After reaching the half-way point of its 50th year, AfroCaribbean specialist Wanis International Foods held a carnival at its Leyton, east London, headquarters. The event, which raised over £1,000, featured a steel band, international food and drink, and fairground games, attracting staff, customers

and representatives of the five charities chosen to receive £10,000 each. Charity activities included 10k runs by the leadership team of brothers Sanjay and Kapil Wadhwani, a ‘£1 for a 1lb’ diet programme and a sponsored silence. Tel: Wanis International Foods 020-8988 110.

Taking a brief break at the Wanis carnival.


• Cash & Carry Management • July 2014

The company has also developed its range of products and services and invested in warehouse management systems and fleet management. Explaining the static performance by wholesaling, Whitten said: “This was a direct result of investment in retail price support for the benefit of our independent retail partners.” Sales & marketing director Paddy Doody said: “We have recorded 11% growth in fresh food sales, showing that our investment in that area has paid off.” Tel: Henderson Group (028) 9034 2733.

New ‘team’ in Scotland Brakes is to list 11 new Scottish products after an event to support suppliers and customers north of the border was held recently in Edinburgh in partnership with Scotland Food & Drink. Speaking after the show, the wholesaler’s chief executive Ken McMeikan – himself a Scot – said the new lines would be available from October, with the potential to extend their distribution across the UK. The products are: Quark cheese from First Milk; a ‘Free-from Cake’ selection (Lazy Day Foods); Arran cheese board and ice cream (Taste of Arran); pie shells and cases (Sword); seaweed water biscuits (Stag Bakeries); gluten-free bread (McGhee’s Bakery); pizza (Eat Balanced); vegetarian haggis (Macsween); pizza wrap (Cosmo); and prepared vegetables (Stirfresh). McMeikan commented: “We are absolutely committed to supporting our Scottish customers.” Tel: Brakes Group (01233) 206000.

‘We’ll drink to that!’ Bidvest 3663 has pledged its support to a Kenco ‘Make Every Cup Count’ campaign aimed at providing 500 million glasses of clean water to South American coffee farming communities by the end of the year. For every cup of Kenco coffee bought from the delivered wholesaler, a glass of water will be donated to the overseas farmers. The foodservice business has pioneered sustainability

for 17 years, achieving the top environmental management performance measurement, ISO 14001, in 2003. It also introduced rainwater harvesting for vehicle washing in 2005, and cooking oil to biodiesel recycling in 2007. Bidvest has committed to a target of zero waste to landfill by 2015. Tel: Bidvest 3663 020-7493 4733. Tel: Mondelez International (08702) 400861.


We’ve got something special to share with you. Share a Coke is back. And this time it’s bigger and even better than ever. With this year’s campaign we are sharing even more. We’re sharing over 1,000 names and nicknames to make every pack shareable. We’re sharing names on 500ml £1 price marked packs. And we’re sharing new transparent point of sale units to make our personalised packs even easier to find. All backed by a multi-million national marketing campaign.

Stock up now to grab your share of the personalised packs.

©2014 The Coca-Cola Company. Coca-Cola, Coke, Diet Coke, Coke Zero and the Dynamic Ribbon device are registered trademarks of The Coca-Cola Company.


Christmas package Brakes’ Christmas plans include a batch of innovations, a ‘menu inspiration’ booklet, a product guide and help with costing and profitability. There is also a ‘Countdown to Christmas’ planner, which, said head of marketing Petra Zargarani, “ensures caterers can plan a bespoke Christmas offer with confidence, enabling them to maximise profit during the busiest period of the year. “Options to tailor menus to different price points, different occasions (including New Year’s Eve) and specific

customers were seen as essential, as was menu inspiration and recipes to support this approach.” Among the new lines

are individually portioned smoked salmon & beetroot gravadlax terrine; port, cranberry & orange stuffing log; Peruvian scallops; smoked haddock parfait; hog roast pork, apple & sage paté; mushroom & nut bake with a gruyère fondue centre; beef Bourguignon; mushroom, cranberry & spinach tart; and ‘easy peel’ langoustine tails. Desserts available include Black Forest tart with kirsch, cherry frangipane tart and spiced apple tart. Tel: Brakes Group (01233) 206000.

Italian and UK deals Bidvest Group has acquired a 60% shareholding in Gruppo DAC, an Italian chilled foods distributor to the foodservice sector, with annual sales exceeding 220m euros and a payroll of more than 700. The company has also

Chilled trio Bestway and Batleys C&Cs have three new chilled ranges – Simply Enjoy ready meals, Juice Press ‘not from concentrate’ fresh juice, and six savoury snacks under the Best-in label. Simply Enjoy (300g) comprises macaroni cheese, lasagne, cottage pie, sausage & mash and chicken curry with rice. They have a price mark of £1.39 or ‘any 2 for £3.50’. Juice Press comes in onelitre cranberry, orange and apple variants with a £1.59 price-mark or ‘2 for £3’. Tel: Bestway Group 0208453 1234.


taken a ‘significant controlling stake’ in PCL, a familyrun UK business which distributes dairy and salad items nationwide. The two deals have cost the Johannesburg-based group around £95m. PCL, based in Hatfield,

Herts, will operate as part of Bidvest Logistics in the UK. The company has annual turnover of around £80m, a fleet of more than 300 vehicles and employs about 900 people. Tel: Bidvest 3663 (0370) 3663 000.

Frozen responsibility New Bestway Group category manager for frozen foods is Rachel Hartwell (below), who has joined from Musgrave Group. Hartwell, who covers the retail, catering and foodservice sectors, reports to senior category manager Steve Carter, who commented: “I am extremely pleased with the way the fresh, chilled and frozen team is taking shape. “We now have a dedicated professional looking after each side of the business working

• Cash & Carry Management • July 2014

with suppliers and depots to ensure our customers have the correct retail and catering ranges to expand their businesses.” Tel: Bestway Group 0208453 1234.

Lending a helping hand.

Better at Barking Several new amenities have been provided at Bestway’s branch in Barking, east London. A ‘1 in front queuing’ option promises registered customers that a new till will be opened if there is more than one person in the queue, while ‘van loading’ offers help to traders loading their vans. Additionally, a lounge area has been installed which offers patrons free tea and coffee and wi-fi facilities before or after making their purchases. The Barking cash & carry manager is Mohammed Asad. Tel: Bestway Group 0208453 1234.

Selfridges supplier Southbank Fresh Fish, a sister company of Bidvest 3663, has become the exclusive supplier of fresh fish to Selfridges. The London department store’s wide-ranging food hall has a strong commitment to selling sustainably caught fish. Tel: Southbank Fresh Fish 020-7639 6000.


legal advice

Don’t forget pubs and clubs! In the first article in a new series from Legal Edge, consultant legal counsel Helen Jenkins (right) urges wholesalers to assist the on-trade – as well as retailers – in adhering to the forthcoming tobacco display ban.

six months to two years, depending on the seriousness of the offence. This doesn’t just apply to the owner of the business; anyone, such as a staff member, who commits an offence could face prosecution.

There has been a lot of press coverage to remind those not already covered by the tobacco display ban that, from 6 April 2015, it will be illegal to display tobacco products (and in Scotland smoking-related products) in all remaining ‘shops’. The media focus has been on retailers who have ‘shops’ of less than 280 sq metres in size that have a traditional gantry and how they are going to cover it up. But from 6 April 2015, wholesalers’ customers who own pubs, clubs and restaurants – in fact any business selling tobacco products – will have to comply too. Some may already be stocking product out of sight, such as in a disused vending machine or under the counter. Most will still be openly stocking product on bar shelves or in a unit or cabinet. What changes will the on-trade have to make? It depends whether the trader operates in Scotland or the rest of the UK. In the box below is a summary of the key requirements.

How can I help my customers? If your customers own a pub, club or restaurant, you should be encouraging them to think about the following: How do I cover up my tobacco products (and smoking-related products in Scotland)? Where am I going to get my cover-up solution from? Can I use my old vending machine just to stock products out of sight of consumers? (Outside of Scotland) How do I separate my tobacco products from other sundry items such as papers and ecigs? What form of tobacco pricing should I use – poster style, picture-price list and/or price lists? How am I going to train my staff on the new law? We would recommend that your customers look at the comprehensive government guidance that can be found on the relevant government website for where they operate their business. There are other resources out there but most of these are for shop formats with larger tobacco units, so if you, or your customers, need help working out what the law means for them, then contact Helen Jenkins at helenjenkins@legaledge.co.uk

• • •

• • •

Legal Edge (www.legaledge.co.uk) provides in-house legal services to businesses. Its senior lawyers work as trusted advisors to solve the everyday legal issues businesses face.

What is the cost of getting it wrong? Getting it wrong isn’t cheap. Anyone displaying product in the wrong circumstances or leaving product on display may face fines of up to £5,000 or, potentially, a prison sentence of

Tobacco display ban: key requirements Scotland

UK (excluding Scotland) Permanent forbidden.







Permanent open display of tobacco products and smoking-related products, such as papers and pipes, is forbidden. (Ecigs, lighters and matches are not defined as smoking-related products.)

Staff are permitted to display items temporarily to those who ask to buy a tobacco product or request information about them. If products aren’t purchased then they must be put back out of sight. A permitted display cannot be bigger than 1.5 sq metres. This is probably not a problem for pubs and clubs as they will only hold a small amount of stock.

A permitted display cannot be bigger than 1,000 sq cm – no bigger than 8-12 packs. Your customers should use this as a guide for the size of their cover-up solution.

Prices of products should be visible to anyone wishing to buy, but there are strict rules about the font type and size used.


Cash & Carry Management

• July 2014 • 13

country range conference

A seamless transition It has been a little over 18 months since Colin Birchall stepped down as Country Range Group managing director. But as Michael Catling found out, CRG continues to thrive under new leadership.


Addressing a record number of members, suppliers and guests, Coral Rose unveiled Country Range Group’s ‘Championing the Independent Caterer’ strategy.

With chairman Colin Birchall perched on the front row and just under 450 guests waiting expectantly, it was quite the stage for managing director Coral Rose to host her first Country Range Group (CRG) conference at the Telford International Centre last month. Indeed, any lingering nerves were perhaps heightened by her reliance on a projector and a video presentation – two visual aids famed for forming a cocktail of unreliability. Thankfully though, the only disruptions were confined to the cleaners hoovering the exhibition hall next door, as delegates were treated to a video montage covering all 16 independent wholesale members. The spotlight was placed on a number of its members acquiring new accounts and experiencing strong growth and turnover, with Birchall Foodservice, Cimandis and Thomas Ridley all investing in new premises over the last 12 months. To keep the traditionalists happy, Rose presented a market overview, before rattling off a number of statistics and revealing that CRG revenue reached £360 million in 2013, with own-brand sales up 7% year on year. Addressing over 200 member representatives in attendance, Rose also unveiled CRG’s ‘Championing the Independent Caterer’ strategy, designed to rival the support services that large foodservice operators currently receive. “We believe that the UK consumer should have a diversity of choice when eating out of home and that independent caterers are integral to this,” she said. “We provide a range of products and services tailored to the needs of independent caterers to enable them to compete effectively, our vision being to ensure our members are the foodservice wholesaler of choice for independent caterers and brand owners.” In the year to date, CRG has released 68 own-brand products and joined the FWD to ensure its voice and members “are heard in the formulation of Government policy and legislation”, according to Rose. CRG’s commitment to ensuring its members benefit from


• Cash & Carry Management • July 2014

“We only joined in September 2012 and in comparison with our previous buying group, Country Range stands out because of its professionalism and discipline. Coral Rose has been brilliant since she took over as managing director and she has an excellent team who are really focused and pull in the same direction. I have never heard anything negative said about them and we are very pleased we joined the group.” Mark Felton, managing director, Caterfood “We were members of Fairway Foodservice for over 25 years but we knew the strength of the Country Range brand and we were confident our members would embrace the move. Since joining in October, we have received no adverse publicity from our customers and we have been able to benefit from Country Range’s fantastic relationships with its suppliers. The Country Range conference gave a great opportunity for our buyers to re-establish relationships and our sales team were able to gain a fantastic insight into suppliers’ product features and promotions.” Jim Rowan, managing director, Dunns Food and Drinks

greater buying power and value for money saw 91 suppliers display a wealth of promotions and products at the CRG exhibition earlier in the day – surpassing last year’s record. In the CRG Member Awards 2014, HB Ingredients received recognition for the Best Exhibition Stand, while Caterfood collected a trophy for Best Group Support. Turner Price and Thomas Ridley received awards for Best Brand Performance and Annual Telesales Focus Team of the Year respectively, while Creed Foodservice won the Best Own Brand Performance category. To conclude the event, Rose revealed that ‘An Evening with Country Range Group incorporating the 2014 Suppliers Awards’ will be held at the Tower of London in December.


supplier strategy

Olivo offers distribution with a difference Background Founded in 1956, Olivo Cold Logistics is a family-owned business based in France and is the market leader in distribution equipment for food and pharmaceutical products. Boasting a client list including Carrefour, Netto and Tesco in Thailand, Olivo prides itself on maximising efficiency and offering a cost-effective alternative to vehicle refrigeration. More recently, Olivo has diversified into the wholesale sector and currently services Palmer and Harvey, alongside several smaller cash & carry outlets.

We now deliver

to our retail outlets from 4 a.m. with silent refrigerated containers. Peter Dorne

Logistics Manager

Product range The Olivo containers, which can offer up to 1,400 litres in storage capacity, are available in Roll and Bac portable formats and provide silent distribution of temperature-sensitive products. Eutectic, cryogenic or thermo-chemical technologies are integrated to offset frequent door openings and preserve chilled and frozen products for over 24 hours. Olivo reports that its containers not only enhance space optimisation, but also reduce fuel consumption and CO2 emissions.

Olivo manufactures 50,000 insulated containers per year.

P&H’s view P&H logistics and development director Richard Slater says: “We deliver to every UK postcode area each day and we couldn’t do that without our integrated network operating with flexibility. Using the Olivo containers provides us with distribution efficiency and customer satisfaction.” Olivo’s pitch Marketing director Richard Shephard-Barron comments: “We offer smaller cash & carry wholesalers the opportunity to extend their operations and benefit from a product which not only lasts for years, but also provides flexibility and costs half the amount of refrigerated trucks. Sales of frozen and chilled sensitive produce have increased significantly over the last few years. We can help our clients to improve their distribution network and cater for the rising consumer demand.”


Portable insulated containers for transport of chilled or frozen products. Hold temperature for 24 hours or more. 30 different models to meet your needs.




sponsored by

Poacher turned gamekeeper This month’s article features James Hall, group symbol director of Bestway. What has been the major milestone or turning point of your career? Creating Best-one into a major force in the symbol sector. In the past 12 years, Best-one has grown from a couple of stores in the Oxford area to a truly national player with over 1,100 stores. Those early days held different challenges to today, but I look back with pride at what has been achieved by the whole team. I also think having my own business gave me great insights into the challenges faced by independents. Who has been the biggest inspiration to you? David Brunel White, who was area director in my time at BHS in Dublin. He had the mantra of ‘work hard and play hard’ but knew how to get the best out of his team. He instilled in me the philosophy that with responsibility comes accountability and to this day that is what I want the whole development team to remember. People will always make mistakes. Accountability makes sure that we learn from those mistakes so that in the future we make more informed decisions and have more confidence in taking risks. How do you maintain a work/life balance and how have developments in technology affected this? I am not very good at the work/life balance – just ask Pam, my wife! Smartphones are great for keeping you up to date with emails and things, but when it comes to communicating I prefer to pick up the phone. Wholesale & symbol is a people business – whether you are talking to suppliers or retailers – and although it’s often easier to ping off an email,

Stalwart of convenience James Hall started his career at BHS and after several years became manager of the Dublin store. He was then appointed as a regional manager by Grandways (which later became Jacksons) and he subsequently joined the board as development director. It was in this role that Hall spearheaded the development of the Jackson c-store chain, which grew to encompass more than 100 stores. From there, he joined Paper Chain East Anglia and steered the company into larger store convenience formats. He then branched out to own and run a chain of three stores before joining Budgens in the early days of Budgens Local. Hall was recruited by Bestway in 1999 and established the Best-one symbol group in 2002. As group symbol director, he is responsible for Best-one and the Xtra Local retail club totalling over 4,000 stores nationwide.

people value you taking time out to be more personal. And you learn a lot more from a conversation than an email. What most frustrates you in business (and in life generally)? Apathy. There is no excuse for it. Everyone has to strive to make themselves or their business better. Show me someone who doesn’t care or thinks the world owes them a living and to me that’s the definition of boring. Without goals or ambition you are just existing, not living. If you were able to retire tomorrow, would you, and if so, how would you spend your time? No, I am not ready to retire, although some days it does seem appealing! When I do, I will travel. I love travelling and am a keen photographer, so to combine the two would be fantastic. And I would probably take Pam too. What advice would you give someone starting his/her first job? Listen, learn and always remember to be respectful of people while going up the ladder as you may meet them coming down. Most of all, enjoy it! What type of business would you have gone into if it wasn’t C&C/wholesale? My background is in retail so you could say I am poacher turned gamekeeper. Retail is in my blood and this has been a key element to the success of Best-one.

James Hall on holiday last year in Desert Springs, Spain.


• Cash & Carry Management • July 2014

If you had a million pounds to invest in business, how would you spend the money? I would create an Academy for Retailing Excellence for the independent retailer. Even the most progressive retailers have something to learn. Failing that, I would buy a party island in the Pacific with open-air bars and restaurants – the million pounds may be overspent!



scotland: achievers

Promoting best practice Achievers 2015 has been launched by the Scottish Wholesale Association in partnership with Cash & Carry Management. Scottish Wholesale Achievers, which was created 13 years ago by the Scottish Wholesale Association in partnership with Cash & Carry Management, continues to reward outstanding performance across the industry in Scotland while encouraging wholesalers and suppliers alike to raise standards through the promotion of best practice. For 2015, there are 10 categories for wholesalers: Best Cash & Carry Depot (sponsored by JTI) Open to any cash & carry depot. The emphasis is on the customer experience in the cash & carry itself, whether the focus is on retail, catering, licensed or one-stop shop. The judging does not cover any delivered operation that the cash & carry offers. Best Symbol Group (Cott Beverages) Open to any cash & carry or delivered wholesaler that operates a symbol group for retailers. Best Delivered Operation – Retail (Imperial Tobacco) Open to any wholesaler (whether purely delivered or both C&C and delivered) that delivers to retailers of any kind, such as CTNs, convenience stores, off-licences. Best Delivered Operation – On-Trade (Britvic Soft Drinks) Open to any wholesaler (whether purely delivered or both C&C and delivered) that delivers to the on-trade. Best Delivered Operation – Foodservice (Premier Foods) Open to any wholesaler (whether purely delivered or both C&C and delivered) that delivers to foodservice operators. Corporate Responsibility Award (Coca-Cola Enterprises) Open to any cash & carry or delivered wholesaler that can show it is acting responsibly on social, ethical, community and sustainability issues. Best Marketing Initiative (Taylors of Harrogate) Open to any cash & carry or delivered wholesaler. This focuses on a single initiative, not a year-long programme of different marketing schemes. Employee of the Year (Mondelez) Open to any cash & carry or delivered wholesaler with an employee who deserves special recognition. Great Place to Work (AG Barr) Open to any cash & carry or delivered wholesaler that makes its employees feel valued at work through opportunities, working practices, equality and camaraderie. Champion of Champions (Philip Morris) Wholesalers that excel to an outstanding level in a single category, and those who do well in two or more categories, will be considered for this award. Scottish Wholesale Achievers also includes four awards for suppliers: Best Overall Service Best Advertising Campaign Project Scotland Supplier Sales Executive of the Year (Sugro).

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• Cash & Carry Management • July 2014

‘An opportunity for suppliers’ Sugro is using its sponsorship of Supplier Sales Executive of the Year to encourage greater field sales coverage of delivered wholesale businesses. The group’s managing director Philip Jenkins (pictured) says: “Wholesalers are reliant on effective field sales coverage to assist them in range advice and promotional development work. The visit from the supplier also provides crucial support and implementation of promotional activity relevant to the business and local retailers.” Sugro has begun an initiative to improve the coverage of suppliers’ field sales resource, which doesn’t operate in delivered businesses as much as it does in cash & carry. Jenkins intends to highlight the opportunities available to suppliers in using their field sales reps to work with delivered wholesalers on gap fill, range distribution and display. He explains: “While it is important for suppliers to visit cash & carries to create displays to motivate retailers, a greater concentration on utilising a delivered field resource at wholesale level will provide display and distribution at consumer level.” For the Achievers award of Supplier Sales Executive of the Year, Sugro, which has 10 members in Scotland operating within Sugro and its sub-group Acorn, will be looking for an individual that embraces this opportunity and works with wholesalers at all levels, showing a strong understanding of their requirements and how to deliver them. “We will canvass all types of wholesalers – retail, foodservice, licensed, and delivered, as well as cash & carry – about the representation they receive from suppliers,” says Jenkins. “We will gather recommendations of individuals who fulfil this criteria and seek opinions about the service they provide before asking the nominees to make a presentation to the judging panel (including independent judges). A decision on the winner will then be made and verified independently.” Concluding, Jenkins says: “I look forward to receiving many nominations and, of course, meeting these nominees to discover their thoughts and aspirations for our wholesalers.”



scotland: swa conference

Challenges and opportunities With the eyes of the world on Scotland this year, speakers at the Scottish Wholesale Association’s conference in Crieff considered the challenges and opportunities facing the trade. The number one concern for members of the Scottish Wholesale Association is duty fraud, said president Asim Sarwar in his opening address at the annual conference in Crieff, Perthshire, last month. “It is one of the big issues on which we will make better progress through collaboration, so we’re delighted to announce that we have taken a significant step forward in combating illicit alcohol trade in Scotland.” The SWA and the Scottish Grocers’ Federation (SGF) have joined forces to create a single point of contact for retailers and wholesalers to report concerns about suspected illegal activity. Asim Sarwar: ‘The SWA has made significant progress in lobbying.’ The intelligence will be forwarded to HM Revenue & Customs’ Illicit Alcohol Task Force, who will prioritise the information and act on it appropriately. Sarwar told delegates that in recent years, the SWA has adopted an increasingly high-profile position on legislation and lobbying. “We have made significant progress, with our independent consultant Scott Brady working on our behalf in the corridors of Holyrood to get our views across to MSPs on various issues, including tobacco and licensing legislation.” In January, the SWA held a parliamentary reception at Holyrood in conjunction with the SGF and the Scottish AntiIllicit Trade Group. The event focused on the escalating economic and community costs of the trade in counterfeit goods. More recently, SWA council members Simon Hannah of JW Filshill and Chris Gallacher of Booker met Fergus Ewing, minister for energy, enterprise & tourism. They questioned him about fuel, empty shops on the high street and the imminent carrier bag charge. “Mr Ewing left the meeting with a better understanding of who we are and what our problems are, and he has agreed to meet us again in August,” Sarwar reported. The SWA has been busy working on behalf of its members in other key areas, he added. These include training and mentoring, the Achievers awards, and liaison between wholesalers and suppliers. On the subject of the independence referendum, he said: “We don’t know what will happen at the polls on the 18th of September but our lobbying work will continue regardless of the outcome. As a trade organisation, the SWA remains nonpolitical and wants to engage with MSPs and MPs from all parties.”


• Cash & Carry Management • July 2014

To encourage discussion about the referendum, guest speaker John Howie, chairman of CBI Scotland and managing director of Babcock’s marine & technology division, highlighted four key issues that businesses should consider: What currency will an independent Scotland use? “The White Paper proposes a currency union with the rest of the UK but the Treasury and the three main UK parties have stated that this will not be acceptable,” said Howie. “In my view, Scotland can’t control the outcome of this debate.” What is the position in relation to membership of the EU? Howie said that the argument put forward by ‘Yes Scotland’ is that Scotland is already a member of the EU and would retain all UK opt-outs through ‘continuity of effect’. However, Spain, Belgium and perhaps others are likely to oppose the ‘continuity’ argument in light of their own domestic issues, and the EU Commission’s president José Manuel Barroso has stated that it would be “extremely difficult, if not impossible” for Scotland to secure EU membership. Furthermore, said Howie, “the potential loss of EU optouts would affect VAT treatment, border restrictions and potentially the currency.” He added: “As with the currency, Scotland can’t control the outcome of this debate.” What does the economic outlook suggest? “This is a choice between hope and risk,” said Howie. On the one hand, ‘Yes Scotland’ argues that an independent Scotland can grow the economy faster and reach 5th in the Organisation for Economic Co-operation and Development (OECD) table. Scotland is currently 14th, with the UK at 18th. On the other hand, 16% of Scotland’s economy would be in oil & gas, compared with 2% for the UK as a John Howie: ‘Scale matters on the international stage.’ whole, and a report by the Institute for Fiscal Studies suggests that between £3 billion and £10 billion of cuts or tax increases would be needed to make Scotland’s finances sustainable. What will it mean for exporters? “Our ability to grow exports relies to an extent on the support available in overseas markets,” Howie explained. The UK has 220 global diplomatic offices, including 169 trade and investment offices in over 100 countries. The White Paper proposes a network of 50 to 90 overseas offices. Howie also pointed out that 65% of Scotland’s goods and services are sold to the rest of the UK.


scotland: swa conference “My view is that scale matters on the international stage. of changing demographics, including the aging population, The UK is a small but an influential player.” single households, people living and working longer, wealth Concluding his presentation on the independence quesbeing in the hands of older people, customers shopping little tion, Howie said: “Whatever happens on the 18th of and often, and the challenge surrounding obesity. September, be it independence or further devolution, the “If we can get all this right, we have a great future ahead,” political landscape in Scotland will never be the same again.” Williams concluded. In Scotland, the 14 Today’s members represent almost Julie Dunn, operations director of Dunns Food & Drinks 22% of Scottish independent sector sales, reported the and vice president of the SWA, shared with delegates the group’s managing director Bill Laird. This compares to a company’s strategy to boost its turnover from £19 million 20% share of the UK market from 170 wholesale members. three years ago to £25 million this year. Laird pointed out that developments in symbol groups, “We invested in our business: a new computer system, own label and technology are important factors for Today’s. new website, an online platform, upgraded phones, PCs, In the last five years, symbol sales have risen by 53% racking and a building refurb. We had recognised that to versus total convenience at 29%. “We are in such a good grow our food business we needed to extend our dry range place potentially, with symbol stores set to so we joined Country Range. We also rise again this year,” said Laird. “Unaffiliated needed a point of difference in our wine independents are likely to decline by 5-6% offering so we joined the Society of this year. However, I do believe that quality Vintners, and in just over two years, our will always be the main qualifier.” product portfolio has increased by 50%. A total of 75% of convenience shoppers “We increased the sales team from six to buy own-label items, and Today’s members 12, and expanded the buying department,” have sold nearly one million cases of prodDunn continued. “We brought in a commuuct from the Essentials and Select ranges nications and PR consultant to work on since their launch in late 2012. “The ecoimproving our corporate image. We looked nomic downturn has been a major driver of at the customers we had and the customers sales,” said Laird. we wanted. We competed fiercely in the As regards technology, he pointed out city bars and night clubs and won a lot of that customer demand will accelerate the business, and we targeted more multi-site Bill Laird: ‘We are in such a good place potentially.’ pace of adaptation and adoption of new operators, garden centres, and children’s technologies, including click & collect, interplay zones. We also engaged our suppliers net ordering, mobile apps, electronic data and got their support for trade accompaniinterface, and store-based EPoS. ments and end-user work.” “Our customers are constantly checking Dunn explained that the company’s our wholesalers’, retailers’ and suppliers’ mission was ‘To increase effectiveness offers and if we are not plugged into our across all internal and external processes in customers, we will miss out,” he warned. order to fulfil customer demand and surMartin Williams, managing director of pass all aspects of customer expectation’. Landmark Wholesale and chairman of the The wholesaler asked its managers and FWD, told the audience: “Our six members their teams to view each other as internal in Scotland are doing incredibly well after customers and it also decided to view supinvesting in their businesses, with all showpliers as significant patrons of the business, ing double-digit growth.” as well as customers. Changes in the economy, technology, It undertook management and staff Martin Williams: ‘We have to turn legislation and demographics are all influsurveys, focus groups and SWOT analyses. technology into an opportunity.’ encing the market, he pointed out. The company also introduced a newsletter, “The economy has a dramatic impact on notice boards, biannual business updates our customers and the end consumer, and to employees, departmental briefings, and confidence is returning,” said Williams. job reviews, whereby managers and staff “Technology also has an impact. There members had to sit down together every are three billion internet users, and online 8-12 weeks and review the job being done. grocery sales are up by 16% year on year. “There were some uncomfortable home We have to turn that into an opportunity.” truths and some difficult conversations,” Williams said that wholesalers are Dunn admitted. “Our message was simple: battling with too much legislative interferchange with us or be left behind.” ence and red tape. Duty fraud is a key conShe concluded: “It’s been very challengcern but the registration scheme for alcohol ing and we still have a way to go but we are wholesalers, which goes live in 2015, will moving forward. For this, our 140th year, reward legitimate operators and will be “a we had set ourselves a turnover target Julie Dunn: ‘We still have a way bonus, not a burden”. of £25 million and we are confident of to go but we are moving forward.’ Wholesalers also need to take account achieving it.”


Cash & Carry Management

• July 2014 • 21

scotland: swa mentoring

Plaudits for SWA scheme The Scottish Wholesale Association launched its mentoring programme two years ago to nurture emerging talent within the industry. But what has it meant in practice? At the SWA conference last month, mentor Graham Benson and his mentee Paul Dickson spoke about their experiences. To date, seven individuals have benefited from participating in the Scottish Wholesale Association’s mentoring programme. One of these is Paul Dickson, area manager at Booker Dunfermline, who was matched to mentor Graham Benson, a businessman and former managing director of Bellevue Cash & Carry. Like all the mentees and mentors, Benson and Dickson received training to understand their own strengths and how the process of mentoring works. “Paul was shown to be someone who laboured over decisions – partly due to caution and partly to lack of confidence,” said Benson. “This was someone who was highly motivated and who really wanted to do the right thing but who was occasionally tortured by self doubt. So my role was to nurture. I was a soft landing pad, a sounding board. “It was most important to me that Paul had the opportunity to learn and develop in a safe environment, where he knew he could take a risk with the benefit of someone being able to work alongside him and assess the risk and then work out how to mitigate it with him.” Benson added that he and Dickson have been working together now for 18 months, usually meeting bi-monthly, with Dickson setting his own action plan which is reviewed at the next meeting. “One of roles of the mentor is to inspire,” Benson continued. “Well Paul inspired me! He trusted me. He listened to me. We didn’t always agree but we had healthy debates and we challenged each other’s thinking. “Paul gives me real hope that the Scottish wholesale sector is in good health. If he is indicative of emerging talent then we have nothing to fear in terms of being future-proof.” Dickson started his career with Booker 20 years ago at the age of Graham Benson: ‘My role was to 17 on the YTS scheme. nurture. I was a sounding board.’ Since then, he has worked in the Hamilton, Falkirk, Kirkcaldy and Port Dundas branches, and now he is based at Dunfermline as area manager. “Whereas the branch manager role is operational, the area manager role is much more sales-based, requiring a new way of looking at the business and a different approach to customers,” Dickson explained. “This was a skill set that I was keen to explore but had little experience of.


• Cash & Carry Management • July 2014

“Graham has exactly the right skills and experience that I needed to be able to tap into. The mentoring scheme is not about what your store looks like, it’s about developing your potential and motivating you as an individual to grow. “Graham gave me one of the best pieces of advice that anyone can get in their career: ‘If it’s right, just do it’. I was keen to build my sales management skills and move out of my operational safe zone, so this became the goal.” Dickson continued: “Graham never told me what to do. What he did was encourage me to find my own solutions to challenges and work through them in my own way, the key being that you don’t learn anything by being fed the answers.” During the course of their meetings, Benson and Dickson created action plans that not only highlighted the steps Dickson needed to take, but also helped Paul Dickson: ‘I now look at my him achieve his overall business in a different way.’ company targets. So what did Dickson gain from the mentoring programme? “By making some small but consistent changes in significant areas, I now look at my business in a different way. I have adjusted how I conduct my business and how I build relationships with both customers and colleagues. This, I am sure, has increased my value to Booker and has had a positive bottom-line effect. “I have become more proactive. Whilst I still analyse the data and still look before I leap, I am now prepared for the options to make that leap. The most important personal gain for me is that I have greater confidence to trust my instincts.” Dickson concluded with a glowing endorsement of the SWA’s mentoring programme: “I have seen the benefits of the programme personally, but, more than that, Booker has seen the positive impact as well. It has added another three managers to the programme this year, which is a massive vote of confidence.” Another mentor on the SWA mentoring programme, Stuart Harrison, senior grocery buyer at JW Filshill, also spoke at the conference about his experience and the benefits of taking part. “This scheme has changed me, not just from a business level but on a personal front too. Most importantly, my confidence has grown. I’m convinced that everyone can be mentored in some way. I would strongly urge anyone interested in this scheme to put their name down.”


Bad for business, bad for consumers, good for criminals An open letter from Colin Wragg, Imperial Tobacco’s Head of UK Corporate and Legal affairs.

In response to the recently announced Government draft regulations to introduce plain packaging of tobacco products, as part of a six week consultation which finishes on August 7th 2014. We are baffled by the small window of opportunity Government has given to respond. Plain packaging will have severe unintended consequences and there is no credible, or new, evidence that it will achieve the Department of Health’s objectives. In Australia, the only country to have implemented plain packaging, the evidence is plain – smoking prevalence has not decreased whilst illicit trade has increased by 20% since its introduction, now accounting for 13.9% of total consumption. The tobacco supply chain supports over 66,000 jobs (including supply chain, distribution and retailers) and with tobacco sales accounting for over 30% of revenue for independent shopkeepers – these jobs and retailers’ livelihoods must be protected – plain packaging will be bad for business.

A Brand you can trust. AA A taste you will Love



The 2012 public consultation saw over 425,000 respondents state that they were against plain packaging. This accounted for nearly two-thirds of all responses. Why would the Government discount the views of so many people? It was, after all, a coalition pledge that this Government would be a ‘much smarter one, shunning the bureaucratic levers of the past’. If you share our concerns, please make your voice heard. Act now and sign up to the ‘No Prime Minster’ campaign by visiting: www.noprimeminister.org.uk We call on our trade customers to also raise their concerns by responding to the consultation and by alerting their local MP.

Colin Wragg, Head of UK Corporate & Legal Affairs, Imperial Tobacco UK.

The complete range of E-Cigarettes

www.imperial-trade.com For Tobac c o Trad e r s O nl y

information technology

Smooth operators Cash & Carry Management looks at IT solutions that offer a wealth of advantages for wholesalers. The Sanderson wholesale IT solution, Swords, is used by more than 150 wholesale and cash & carry businesses of all sizes to support growth, increase sales and profits, and improve visibility of operations across the entire business. The company recently introduced an Online Ordering system, which is helping wholesalers to boost sales via an additional sales channel, and a Mobile CRM app, which elevates customer service levels and boosts sales efficiency by providing 24-hour access to the Swords system. Using the latest technology for smartphone or tablet PCs, the Mobile CRM app enables staff to work efficiently while away from the office, ensuring business continuity. The solution benefits all areas of the business, including: Customer service. The Mobile CRM app enables faster response times to customer requests. Staff can quickly retrieve invoices, view sales history, check stock availability, and submit return requests. It also features a new customer survey function, allowing the user to conduct research, such as customer satisfaction and compliance surveys. The Mobile CRM app boosts Sales orders. The app sales efficiency. enables staff to maximise sales order efficiency during customer visits, with barcode scanning for fast order taking, instant quotations and a new catalogue order facility displaying product images for improved order accuracy. Business productivity. The app saves time as staff can hold more informed meetings with customers while at their premises, reducing follow-up actions back at the office. It also streamlines the credit returns process by automatically submitting details, reducing paperwork and providing a visible audit trail.

and upload orders to the online system directly, saving time and boosting service levels. “Our efforts this year have been on improving the website and growing online sales, and the web is becoming increasingly fundamental to our business,” says project manager Alison James. Online orders now represent 25% of sales and the figure is growing rapidly following a recent upgrade to the website – the site now features better product information and an advanced search tool. “We’ve seen a 10% increase in web sales inside three months, since we introduced Swords’ improved online ordering functionality,” James reports. Regal recently relocated to a purpose-built 45,000 sq ft warehouse. Following the introduction of the Swords Radio Frequency (RF) solution, warehouse staff are instantly updated with tasks, transmitted in location order to help speed up picking time. As well as eliminating picking errors, the RF devices provide traceability of high-value items such as razors, as well as toiletries and food with best before dates.

No annual stocktake One of the biggest gains for the company since the introduction of RF functionality has been the annual stock take, which used to take weeks of preparation. The Swords system monitors stock levels continuously through controlled warehouse management with built-in integrity checks, completely removing the need for an annual stocktake. “Using Swords we have reduced stocktake discrepancies by 90% because it’s much easier and quicker to identify the errors now,” says James. For the second year running, Sanderson customers have won eight awards for business excellence at the Today’s Group awards dinner. These wholesalers use Swords to manage their business operations. The Sanderson customers who were triumphant in a range of awards were: Dee Bee, JW Filshill, SOS Wholesale, M9 Cash & Carry, HT & Co Drinks, Agrimark and James Wilson (Orkney) Ltd.

‘Substantial benefits’ Regal Wholesale, a wholesaler of household goods, toiletries, groceries and paper products based in the Wirral, Merseyside, continues to gain substantial benefits from the Swords solution across its business. These include visibility of stock and operations, improved order management and sophisticated business intelligence. The company is currently focusing on online trading and the Swords online ordering functionality is proving instrumental in helping it access new markets. Additionally, Regal is trialling the Swords mobile barcode scanner, which allows customers to scan product barcodes


• Cash & Carry Management • July 2014

Regal continues to gain substantial benefits from Swords.


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

information technology Accord wins new clients BCP has a pedigree stretching back over three decades and a business philosophy that ensures its significant annual R&D spend is used to keep its Accord solutions at the cutting edge and generating profit for users. A specialty cheese manufacturer & wholesaler, an ethnic foods wholesaler and a Middle Eastern foodservice wholesaler have all recently invested in complete Accord solutions. Other signings include a leading UK drinks company, a major UK wholesale distributor of nutrition & healthy lifestyle products and a motor accessories & forecourt distributor, which have implemented Accord with Voice WMS. The latest client to report benefits from Accord is a leading pet products wholesaler, Pedigree Wholesale, which has improved efficiency and control across its business following investment in a 90-user multi-depot Accord ERP system, including Web Ordering and Voice WMS. Based in Nottingham, Pedigree services over 2,000 accounts in the independent pet sector across England and Wales from a network of five strategically located depots. Key to selecting Accord, says the company, was its powerful order-taking features and the fully integrated Voice WMS, “whose functionality outclassed specialist stand-alone warehouse offerings”. Accord was implemented in phases: core modules, from Purchasing to Financials, went live across all depots over a single weekend, followed by Voice WMS at Nottingham and, finally, roll-out of Voice to the wholesaler’s satellite depots. Accord gives Pedigree the power and flexibility to operate the business effectively with the most modern IT facilities, providing easy access to key sales, product and buying information, as well as effective warehouse control. The company now has increased control and efficiency across its whole business, in particular: Multi-depot stock control and replenishment. The management and control of stock had always been complex, with customer orders often satisfied from more than one depot, trunking of products between depots, central and depot level buying, and the added complication that deliveries may be made to a depot from orders placed centrally and vice versa. Accord’s multi-depot design has simplified this whole process, providing full visibility of stock and its movement so that Pedigree can fully control and monitor these activities across all depots. Buying. Accord easily accommodates Pedigree’s requirement to buy both centrally and locally and has delivered considerable savings, allowing the company to rationalise stocks, reduce out-of-stocks, reduce time spent on buying and negotiate better deals. Order taking. Efficient telesales is vital for Pedigree as the majority of orders are generated this way. Accord’s Telesales system has provided greater control and improved effectiveness of the telesales operation, allowing operators to work more efficiently and proactively and increase sales. More recently, web ordering has proved enormously successful, giving customers more flexibility in ordering, increasing loyalty and reducing the costs associated with handling orders. More than 20% of Pedigree’s orders have now moved online.


• Cash & Carry Management • July 2014

A warehouse worker uses the BCP system.

Pedigree’s financial director Chris Laud says: “Customers find web ordering easy to use and like the flexibility and independence it gives them. The fact that taking orders in this way is also very efficient has allowed us to grow our sales without having to take on additional staff.” Key to the success of the whole order-taking process is close integration and transparency across the operation. “This is where the truly integrated nature of Accord comes into its own,” says Laud. “Telesales operators have complete visibility of online activity so they don’t waste their time or customers’ time calling when a customer has placed an order online.” Operations. The conversion from manual, paper-based operations to real-time, wall-to-wall voice control across all five locations is delivering major efficiency improvements. Pickers now work faster and more accurately from pick faces that are automatically kept replenished by the system, optimising the use of both fork-lift truck drivers and pickers and eliminating re-picks and waiting time due to empty picking faces. Picking rates have improved by up to 20%, and accuracy is at 99.9%. “Order fulfilment – ‘right first time, on time’ – is always our aim and we’re virtually there now,” says Laud. “The whole warehouse just works so much more efficiently.” Stationery and administration savings have also been significant, while less obvious benefits include faster training of new staff and the flexibility to move staff around departments as product knowledge is no longer needed.

New-generation scanner STL has signed a partnership agreement with Datalogic to provide UK wholesalers with what is claimed to be the best new-generation barcode scanner. Configured by STL specifically to meet the needs of cash & carry operators, the Magellan 3200VSi offers superior performance and functionality over laser-based scanners. It can scan all 1D outer and inner barcodes, recognise 2D barcodes (unlike conventional scanners), capture damaged, partially obscured or poorly printed barcodes, recognise items past or present, and capture images. It is also




Everything you could wish for in a single IT solution



(0)161 355 3000

information technology ‘Data is the new technology: harness it and use it proactively’ It is said that global data is increasing at a rate of 40% each year. However, only a fraction of businesses have worked out how to harness this information and use it proactively, points out Tanya Pepin (below), director of The Whole Sale Company. “Looking ahead, technical development will not be centred on the latest trends in web development or the look and feel of an ecommerce site, they will be much more about maximising the use of data. The user interface will be a means to an end and content will be king!” she says. “Google is an obvious example of a company that has centred its product development on effective use of data. Its business model is structured to harness the power of its information – the user interfaces it deploys, such as the Google search tool, Google Mail or Google Maps, whilst functional, are simply conduits to accessing and leveraging the personal data its customers provide. Examples of this are geo mapping to access user locations and browser history to collect website preferences. All of this is turned into solutions to make browsing quicker and easier and to create revenue streams through pop-up adverts or data sharing with vendors so that offers are tailored. “In a retail context, Amazon’s online offering is based on the principle that customer communication should be truly personalised. Historically, this meant that customers visiting the Amazon website were offered products on the front page based on their purchasing history. This has now evolved and extends to emails of offers based on similar

reliable, quiet and economical to run, capable of reading barcodes from mobile phones or tablets, and competitively priced. STL is the only company in the sector developing software using today’s technology. This means, it says, that its software is easier and more cost-effective to install, use, customise and manage. Furthermore, because the open technology has a solid roadmap, STL solutions maximise customers’ options for future extensions and integrations. STL believes that its progressive 64-bit technology platform, incorporating its Merchandise Management System (MMS), Sales Order Processing (SOP) system, and MM3 handheld scanners, has helped foodservice specialist Restaurant Wholesale almost triple revenues in three years. Rubayeth Kamal, director of Restaurant Wholesale, says: “STL’s solutions have met our brief and more. STL has a strong track record in innovation and clearly understands our marketplace, making it the ideal IT partner to help us plan our next steps.” These next steps include the forthcoming opening of the


• Cash & Carry Management • July 2014

items previously bought or services and experiences that are only available in a customer’s specific geographic location. Payment details are stored and preferences recorded so that the customer has to invest as little time and effort as possible when spending money with Amazon. Consider just how big Amazon’s inventory is these days – this business is a great example of effective big data management.” So what does this mean for wholesale? “Wholesale is still at the beginning of the evolutionary curve when it comes to online sales and harnessing data,” says Pepin. “Many wholesalers are still struggling to develop an effective online selling solution and even fewer offer customers online access from multiple devices or tailored offers. “However, wholesalers already have great data – the point-of-sale system is capturing transactions, customer visits are recorded, and personal data such as business type, location, payment history and preferences are also saved. Indeed many wholesalers operate a multitude of price schemes for different customers. “The key is unlocking this information and developing business processes so that each customer is receiving personalised communication and bespoke offers based on their preferences. Amazon and Tesco may already have their eyes set on the wholesale channel as their business models evolve. Keeping this competitive threat at bay demands that the channel knocks big data down to size.” The Whole Sale Company has extensive knowledge of the wholesale channel and its data, and it helps wholesalers and suppliers unlock the value from the information available. “We do this by providing suppliers with sales and marketing insights that can ensure that they get a real return from the data they buy,” Pepin explains. “We help wholesalers with data planning, management strategies and support to optimise their customer marketing and online presence through effective use of customer data.”

wholesaler’s third depot and the launch of an online store. DIY trade wholesaler Stax Trade Centres is another company to have benefited from using STL’s solutions. It had been struggling with PCs, which slowed its tilling software and caused intermittent scanner and chip & PIN communication problems. To address this, Stax piloted the dedicated NCR PoS solution available exclusively from STL. Derek Doyle, IT manager at Stax, comments: “Everything is so effortless in comparison to the PC-based system we had before. The NCR PoS units took just an hour to install and haven’t been a problem since. That represents a huge cost and time saving.”

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






products & promotions Urban energy

Straight up SEABROOK CRISPS – Straight Cut crisps from Seabrook Crisps are now available in Sea Salted, Cheese & Onion and Sea Salt & Vinegar variants across wholesale, cash & carry and symbols nationwide. Straight Cut is the first new range created by the brand since it was relaunched a year ago with redesigned packaging. Since then it has achieved 4.6% MAT value growth, outperforming the overall crisp category and purchased by a million more households in the last year (Nielsen). The launch is supported by a range of retailer deals, trade marketing and promotions to consumers through social media to drive awareness and encourage trial. Tel: Seabrook Crisps (01274) 546405.

TV advert BLU ECIGS – The electronic cigarette brand’s first multi-million pound UK campaign has kicked off with a 40second TV commercial called blu Freedom. CEO Jacob Fuller told Cash & Carry Management: “blu Freedom is a visual metaphor for the freedom smokers can reclaim when switching from traditional cigarettes to blu eCigs. No longer having to deal with the restraints of traditional cigarettes, blu e-cigarettes allow smokers to embrace freedom and choice, just as the cast of the advert does.” Aimed at smokers over the age of 25, the TV ad runs after 10pm every day across a variety of satellite channels, with the full version available on YouTube. The campaign includes digital and electronic outdoor media. blu eCigs is also taking some of the top UK electronic music acts on a nationwide tour. Tel: blu eCigs (0800) 014 9355.

Redsky Brands – The company has launched PK Energy Drink, named after PK, the slang for parkour, the free-running sport popular with urban youth. Managing director Tejinder Sekhon says: “We wanted to create a brand with a very strong visual identity linked to urban youth that requires no translation, making it easier to launch in markets such as Africa, the Middle East and Asia, as well as in the UK.” Sekhon believes that developing the brand through this grass roots approach of targeting sports like parkour and skate boarding will appeal to a young urban market that finds it difficult to relate to mainstream marketing activities. PK is available in a 24 x 250ml pack. Tel: Redsky Brands (01753) 578877.

New formats WANIS – The company has introduced Tropical Sun 100% Natural Coconut Milk in a 400ml can, as well as a new Tropical Sun Coconut Milk Powder in a 50g sachet. With a campaign that includes two new TV ads, there are plans to extend the reach of the coconut range with consumer sampling, advertising, PR and digital marketing. “Coconut milk products are performing exceptionally well, with volumes up 18.2% and value up 21.3% (Kantar),” says brand manager Jag Singh. “Our new launches will help to continue this growth, create up-sell opportunities for retailers and get more people spending in the world foods aisle.” Tel: Wanis 020-8988 1100.


Jammie launch BURTON’S BISCUIT COMPANY – Jammie Dodgers Berry Blast is a new addition to the biscuit brand that features blackcurrant-flavoured jam at its centre. “Burton’s continues to launch some of the most innovative products in the marketplace,” says David Costello, head of customer category management. “This new variant builds on what Jammie Dodgers does best, providing a combination of full-on fruity jam at the heart of an iconic biscuit.” Jammie Dodgers Berry Blast is available in 140g standard size packs (rsp £1.15), and also in mini snack packs (7 x 20g, rsp £1.59) – ideal for lunchboxes. Jammie Dodgers is the UK’s number two children’s biscuit brand, with annual sales of £20m (Nielsen). Tel: Burton’s Biscuit Company (01727) 899700.

Natural move KERRY FOODSERVICE – The company has reformulated and relaunched its range of beverage syrups to be free from artificial colours and flavours. In Datamonitor research, 57% of global consumers said natural ingredients have a high or very high influence on their choice of drink. In hot beverages particularly, 50% of consumers were prepared to trade up into a more natural, premium-market segment. Brand manager Steph Goldie explains: “Consumers want to know more about the products they purchase out-of-home and have an increasing appreciation for good quality beverages made from great quality ingredients.” The DaVinci Gourmet portfolio of syrups for hot and cold beverages comprises Classic, Fruit Innovations and Sugar Free options. Tel: Kerry Foodservice (01784) 430777.

Cash & Carry Management

• July 2014 • 33

products & promotions Papers in pack

Skills campaign

BRITISH AMERICAN TOBACCO (BAT) – The tobacco company has launched Pall Mall roll-your-own (RYO) 20g with papers in pack. “Pall Mall roll-your-own is our price fighter,” says brand executive Fiona Biggs. “We’ve already provided wholesalers and retailers with the opportunity to deliver their customers the lowest priced 10g in the market (at time of writing). “Growth in the 20g–25g segment is driven by papers-in-pouch offerings, so when we were considering ways to upgrade Pall Mall 20g we decided to offer an upgrade that would give wholesalers and retailers more of an opportunity to cash in on this growth phenomenon.” The product is available in pricemarked packs and unpriced packs. BAT recommends the use of PMPs, which occupy more than 64% of the RYO market. Pall Mall 20g RYO with papers in pack replaces Pall Mall 20g without papers. Tel: BAT 020-7845 1000.

BRITVIC SOFT DRINKS – Robinsons Fruit Shoot, the number one children’s drink (Millward Brown), continues to encourage kids to ‘Get Your Skills On’ with a new campaign that includes a five-part TV series set to air in August. Called ‘Fruit Shoot Get Your Skills On’, the magazine-style show will feature skills tutorials, Guinness World Record attempts, celebrity guests and musical performances. It will also honour kids who have excelled in skillsbased categories. The brand is also running an onpack promotion that gives three consumers the chance to ‘Win a Skills Playground’ for their local community. Tel: Britvic Soft Drinks (0845) 758 1781.

Big screen deal MONDELEZ INTERNATIONAL – Oreo, the world’s number one biscuit (Euromonitor 2012), has partnered with the upcoming film Transformers: Age of Extinction and launched a limitededition pack to tie in with the cinema release. The special 150g (6 x 25g snack packs) is designed to help drive shelf standout. Tel: Mondelez International (08702) 400861.


New formulation COCA-COLA ENTERPRISES (CCE) – Available in Great Britain from September, Coca-Cola Life is a lowercalorie cola sweetened with a blend of sugar and naturally-sourced stevia leaf extract. Coca-Cola Life will be available in a 330ml can, 500ml PET bottle, 1.75-litre PET bottle, 6 x 330ml can multipack and 8 x 330ml can multipack at the same rsp as the rest of the Coca-Cola range. The new product will be supported by in-store promotions, sampling and a marketing campaign that will include digital, outdoor and print. CCE’s ‘Share a Coke’ campaign has returned. A wider choice of over 1,000 names means more shoppers can purchase personalised Coca-Cola products, reaching over 80% of the population. Selected nicknames are also included on 500ml and 375ml CocaCola bottles, as well as on 330ml cans. Tel: CCE (08457) 227222.

Festival designs PHILIP MORRIS – Limited-edition packaging has been released for the Chesterfield and Marlboro Gold Original brands to celebrate the summer festival season, a key sales period for tobacco. Marketing director Zoe Smith comments: “Marlboro Gold Original is the UK’s best-selling premium brand, while Chesterfield sales doubled last year, making it the third-fastest growing brand in the UK (Nielsen). The music festival season presents an excellent opportunity for retailers to maximise their tobacco sales.” Tel: Philip Morris 020-7076 6000.

• Cash & Carry Management • July 2014

Heritage focus TATA GLOBAL BEVERAGES – Tetley has launched a campaign to ‘showcase its 175-year heritage of tea blending expertise and reinforce its credentials in delivering quality products’. The campaign forms part of Tetley’s £11m support programme for the year. “The tea business is all about delivering great taste through quality sourcing and blending,” says senior brand manager Michelle Jee. “There are a lot of brands out there competing with very similar offerings, but Tetley’s taste, product quality and blending expertise is second to none.” Tetley is also running a print campaign in support of Tetley decaf. Press ads will run in a number of women’s, lifestyle and health titles. Tel: Tetley (0800) 387227.


New Price Marked Packs from GB’s Number 1 Gin brand* Presenting Gordon’s 70cl, Gordon’s 35cl, Gordon’s Elderflower 70cl and Gordon’s Crisp Cucumber 70cl Price Marked Packs.

86% of shoppers trust the price on a Price Marked Pack, over the price on the shelf. HIM! 2011; Diageo Shopper Understanding Research


*Nielsen Scantrack On & Off-Trade MAT 26.04.14


Informed choices While convenience is a factor, health remains a key consideration for many consumers. According to Kerry Foodservice, as meat becomes more expensive it is increasingly being replaced by dairy products in foodservice, and so the profitability of the category for the cash & carry channel is on the up. Kerrymaid’s portfolio includes cream alternatives, spreads, slices and grated cheese, custard, frozen yogurt and ice cream. Suitable for cooking in a bain-marie or microwave, Kerrymaid Double has the taste of fresh cream but is freeze/thaw stable and can be used alongside acidic or alcoholic ingredients without splitting. Similarly, Kerrymaid Buttery can be used for spreading, baking and cooking. To help its products contribute towards a balanced diet and healthy lifestyle, Kerry Foods operates the ‘Better For You’ programme, which aims to improve existing products and develop new ones with reduced calories, saturated fat and sodium. Kerrymaid Double has no hydrogenated fats, while the fat content of Kerrymaid Soft & Spreadable has been reduced from 55% to 30%.

occasions involve children. Mini Babybel and The Laughing Cow both come in pre-packaged portions and, with 98% milk content, are naturally rich in calcium. Mini Babybel Light contains only 50 calories per portion and is now available in a mixed pack, which contains Original, Cheddar and Gouda varieties. Laughing Cow Original provides 18% of children’s recommended daily calcium allowance and The Laughing Cow Light has only 7% fat. According to the DEFRA family food survey, cheese has seen a 5.7% increase in consumption over the last 10 years. “The many different varieties of cheese available illustrates the cheese category’s versatility in usage,” says UK group product manager Chloé Féminier Tomkins. “Having a range of cheeses that can be used in a multitude of applications can help stores and operators to grow their dairy offering and increase opportunities to capture customers.” With health a strong trend in today’s dairy market, Bel offers ‘light’ varieties for a wide selection of its brands, including Leerdammer Light, Mini Babybel Light and The Laughing Cow Light. Leerdammer Light contains 50% less fat than cheddar. Bel’s latest release, the Sandwich & Creation range, provides operators with an ultra-spreadable version of Boursin in a 500g tub.

Dairy snacks for kids The chilled yogurts & desserts (CYD) category is worth £2.3bn, with convenience making up 11% of the value (£249m) and 9% of the volume. Wildlife Choobs, from Yoplait, is the UK’s number one children’s CYD portable. Over 10% of all CYD sales come from children. Yoplait has a 56% share of the UK market, and 65% within convenience. Yoplait works to promote its premium brands at Back To School time with deals that match the multiples, with the aim of helping traders to buy at a good price and subsequently sell at a price that offers value. Yoplait regularly communicates its £1 price-marked children’s packs in an attempt to get traders to list them. The company has launched Wildlife Crocolate, a new children’s chocolate dessert in a four-pack big pot £1 PMP. All data SIG.

September sees the introduction of free school meals, and Bel UK believes that providing children with healthy, nutritious meals in appropriate portion sizes is crucial. According to Kantar, around 70% of Mini Babybel meal


• Cash & Carry Management • July 2014

Healthy growth Predominantly a product bought on impulse in the convenience channel whilst on-the-go, flavoured milks are growing by 14% year on year and are suitable for morning, lunch and afternoon snacking occasions. From FrieslandCampina, Yazoo is available in a range of formats – from 475ml on-the-go bottles to the pour-andshare one-litre bottle – to meet the varying needs of the convenience shopper. Volume and value growth continues partly due to innovation within the category (new product types and formats), increased visibility (front-of-store siting with meal deals), and promotional offers. To capitalise on this growth, FrieslandCampina


With 40% POR


is the No. 1 choice

Exclusively offered in the convenience channel new YAZOO PMP packs will increase customer penetration and sales, offering shoppers a positive value perception in-store and retailers a great profit on return.

1 £ PMP


*Based on WRSP of £5.99 for 10x475ml and RSP of £1

dairy Merchandising the category by cheese type allows customers to navigate the chiller in depot. Merchandising catering and retail packs separately to meet the different needs of wholesalers’ customer base and using PoS to split the different sectors can also make the chiller easier to shop, the company maintains. All data Kantar.

suggests that convenience retailers consider siting flavoured milk in the soft drinks chiller for ease of navigation. Yazoo has a new pack design that has been tested using eye-tracking technology – 19% more respondents noted Yazoo in the first two seconds at fixture. The limited-edition Vanilla variant has returned and is growing by 57% year on year (Kantar). The brand’s 475ml bottles are now available as PMPs. Price is a key decision factor in convenience, and PMPs offer retailers an easy to implement, on-shelf merchandising solution to trigger impulse purchase and yield good margin, maintains the company. Yazoo’s £1m national outdoor advertising includes the ‘Hits the Spot’ campaign, which offers free bottles of Yazoo though mobile couponing as well as free merchandising kits to retailers. Yazoo has a rate of sale nearly three times higher than its closest competitor. All data IRI unless otherwise stated.

A firm focus on format

“The growing demand for functional drinks presents a clear opportunity for the cash & carry trade to help independent retailers generate additional profits,” says Nyree Chambers, head of marketing at Grace Foods. Nurishment, the UK’s bestselling nutritionally-enriched milk drink, contains vitamins, minerals, calcium and as much as 20g of protein per pack. “Retailers recognise that as consumers’ lives become more hectic they’re looking for more than just great taste from their food and drink. They’re also looking for products that will help to take care of their bodies,” adds Chambers. “Nurishment meets this demand by helping to replenish – through its exclusive mix of vitamins and minerals – consumers’ lost energy, especially when they don’t have time to stop.” Nurishment Original is now available in Mocha flavour. “In consumer research, mocha is always one of the flavours that brand loyalists say they’d like to see introduced. We’re also confident that this chocolate-coffee flavoured variant will attract new consumers to Nurishment Original,” says Chambers. Sales of the £13m Nurishment Original brand have shown year-on-year growth of 20%. All data IRI.

The growing trend for scratch home cooking has been spurred on by TV programmes such as The Great British Bake Off, but the credentials of ‘healthy spreads’ have come under fire from the national press. “Calorie counting is increasingly becoming outdated as more consumers look to follow an ‘everything in moderation’ approach to eating, with taste, health and naturalness having a greater influence on their purchasing decisions,” explains Stuart Ibberson, business unit director at Arla Foods. Lurpak and Anchor are positioned at number one and three respectively in the butter, spreads & margarine (BSM) category, and are available in spreadable and block formats. Branded products represent the lion’s share of sales within the BSM category, especially within the spreadables segment (branded products account for over 97% of sales). Worth almost £1.5bn, cheddar accounts for 56% of total cheese volume and is purchased by 95% of households. Cheddar block generates 84% of cheddar sales. Arla Foods believes that providing a variety of different formats should also be a focus for wholesalers. Individually packed cheese snacking ranges and sliced and grated formats respond to the demand for convenience.


• Cash & Carry Management • July 2014

Brand recognition At Müller Wiseman Dairies the focus is on retaining and growing value through product launches and incremental brand expansion. The company was awarded three category wins at the Product of the Year 2014, the world’s largest consumer-voted award for product innovation. Müllerlight Turkish Delight, the winner in the healthy yogurt category, is now a permanent addition to the line-up. Müller Corner won two accolades: one for its de Luxe range, and another for Kids Corner Lots of Love in the luxury yogurt and kids desserts categories. The brand is now number one in the UK, by a margin of over £15m. Müllerlight Turkish Delight, Müller Corner de Luxe After Dinner Mint and Marc de Champagne, and Müller Kids Corner Lots of Love now display the new Product of the Year logo on pack. Müllerlight has a range of new flavours – all at 99 calories or less – which includes fat-free limited-edition Müllerlight Skinny Cappuccino Sprinkled with Dark Chocolate.


Created by you. Made with Kerrymaid.

Irish Dairy Craft

The professional dairy range made with Irish craft and charm that delivers the creamiest flavour and texture to your dishes every time.

For more information contact Customer Services T: 0800 783 4321 E: info@kerry-foodservice.co.uk W: www.kerrymaid.co.uk @KerrymaidDairy

dairy Müllerlight has two new fat-free six-packs called Dessert Inspired and Cheesecake Inspired, also at 99 calories or less per pot. Dessert Inspired contains three Apple Pie and three Banoffee Pie flavour yogurts, while Cheesecake Inspired includes three Strawberry Cheesecake flavour and three Lemon Cheesecake flavour yogurts, both with real cake pieces. Müllerlight Desserts are available in Mischievous Milk Chocolate, Frivolous Fudge, Wickedly White Chocolate and Mysterious Mint Chocolate variants. The number one Greek yogurt brand in the UK, Müllerlight Greek Style has launched Fruitopolis – the only Greek style yogurt range with a real fruit layer on top, which is also fat free and contains 90 calories per pot. Müller Wiseman Dairies introduced four new flavours and updated packaging to the Corner portfolio in the form of Müller de Luxe Corner. The range of flavours includes Marc de Champagne, After Dinner Mint, Coconut Dream, Crème Praline and Irish Cream. In addition, the company has introduced its first Greek Style Corner with Almond-Flavour

Biscuit and Dark Chocolate Pieces. Cadbury Pots of Joy are desserts made with real chocolate and whipping cream, available in four flavours: Cadbury Dairy Milk, Cadbury Caramel, Cadbury White Chocolate Buttons, and Strawberry Dream Roses. Cadbury Twin Pots are now available in Marvellous MixUps Fruity Jelly Popping Candy and the limited-edition Marvellous Mix-Ups Cherry Cola Fizz. Cadbury is the number one brand in chilled desserts with value sales of £57m. Worth £50m, Müller Rice is available in a selection of flavours, including Strawberry, Raspberry, Apple (all with 20% more fruit), Original, Vanilla Custard, Banana & Toffee, Maple Syrup and Apple Strudel Flavour Sauce. The company also offers a limited-edition Smooth Chocolate and Caramel variety. All data Nielsen.

For further information: Arla Foods (0113) 382 7000 Bel UK (0333) 900 2024 FrieslandCampina (01403) 273273 Grace Foods (01707) 322332 Kerry Foodservice (01784) 430777 Müller Wiseman Dairies (01355) 244261 Yoplait (0845) 601 1012

Promo Checker is a website reporting national promotional activity from suppliers in key wholesale outlets

“Promo Checker enables me to quickly get a rounded view of all the relevant promotional and competitor activity. This is mainly down to its concise and informative format.” John Sutcliffe, Out of Home & Convenience Channel Controller, Taylors of Harrogate

For further information:

www.cashandcarrymanagement.co.uk tel: 01342 712100


• Cash & Carry Management • July 2014


Celebrating 25 years

The Black & White brand launched in 1989, and has since gone on to become one of the top Milk brands in the UK*. Delivering for our customers is our top priority and that’s why quality of service and product are as important today as they were at the beginning. Here’s to the next 25 years.


*Source: The Grocer Top Products survey 2013 in association with Nielsen.


The professionals in milk

price-marked packs

The price is right Criticised for undermining margins, yet lauded for encouraging repeat purchases, price-marked packs may divide opinion but they are increasingly prevalent on shelves. Michael Catling reports. Over half of the growth in the soft drinks market, which is worth £1.8 million in impulse, is being driven by PMPs, a study by Nielsen has revealed, with an increasing number of manufacturers and retailers recognising that they indicate value for shoppers – a key driver of brand loyalty and additional purchases. Guy Gissing, national impulse controller at AG Barr, believes that PMPs signal an “important profit opportunity for the cash & carry trade”, with an IGD survey in 2012 showing that 58% of consumers buy more when products are on promotion. The importance of PMPs to the soft drinks market was further accentuated by a retailer study, commissioned by AG Barr last year, which identified that PMPs can drive incremental category growth and increase rate of sale. This, amalgamated with the success of AG Barr’s multibuy mechanic across its Irn-Bru and Barr variants, culminated in PMPs being integrated across its Rubicon, Sun Exotic and Ka brands last summer. The £1.29/two-for-£2 promotion, which still features across several formats, is geared towards encouraging repeat purchase and offering consumers more value. Gissing says: “The importance of price-marked packs to the cash & carry trade is highlighted by how much focus retailers now place on them, with 65% reporting that their sales of price-marked packs have risen in the last 12 months (him!). “With price-marked packs being used more frequently as manufacturers realise their importance, there is a need to continually innovate to maintain impact and continue to deliver great value to retailers and shoppers.” AG Barr, an official supporter of the Commonwealth Games in Glasgow, posted 5.2% sales growth in the 15 weeks to 11 May and has recently introduced ‘Born to


• Cash & Carry Management • July 2014

‘With price-marked packs being used more frequently, there is a need to continually innovate to maintain impact’ Guy Gissing, AG Barr national impulse controller Support’ 500ml and two-litre PMP Irn-Bru packs, featuring the Glasgow 2014 logo, to continue its promotional and marketing investment. The company has also transformed seven containers in the Merchant City district of Glasgow into a pop-up shop selling Irn-Bru merchandise. The shop, which will open for four weeks during the Commonwealth Games, will raise funds for Glasgow’s Hospice’s Brick by Brick Appeal (see News p.8)

Pyramid of growth The opportunities for sales growth in the sport and energy drinks market lie in taste, value and flavours, according to Boost Drinks, with consumer research and PMPs proving increasingly instrumental in cultivating brand loyalty.









price-marked packs In May, Boost launched 250ml 49p cans and 500ml 79p PET bottles of Sugar Free Pink Lemonade, Citrus Zing and Exotic Fruits, exclusively for the independent channel. Designed to compete for a larger share of the £410 million energy drinks category outside multiples (IRI), the launch of all three products was heavily influenced by a survey of 2,500 consumers – for example, the Sugar Free Pink lemonade provides just five calories in a 250ml can and caters for a rising number of health-conscious consumers. Simon Gray, managing director of Boost Drinks, 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. “The great flavour that consumers then experience means they come back for more. Retailers understand this, and benefit directly because we offer such great margins. This all sits really comfortably under our ‘Champion of the Independents’ positioning because our very profitable product range is not available in any multiples.” To supplement the launch of its three new variants, Boost has introduced 49p PMP 250ml cans and 79p PMP 500ml PET bottles of its Original and Sugar Free range, as well as a limited-edition one-litre PET bottle, price-marked at £1. Boost Drinks sales director Al Gunn adds: “We now have a fantastic range across all three sectors of sports and energy drinks – stimulation energy, glucose, and sports/isotonic –

BUYER’S VIEW FROM HQ Landmark senior trading controller Jim Brown (pictured) addresses the success of price-marked packs and its impact on premium pricing. Which sectors have benefited most from utilising PMPs? Are there any categories which have been particularly slow on the uptake? I think virtually all categories are benefiting from pricemarking, from tobacco and beers and ciders through to all the impulse categories and the key areas of grocery and non-food. Confectionery is probably the most problematic sector because of the relatively tight margins and retailers’ propensity to premium price. Stocking PMPs makes a big difference to their margin as they are then restricted to a manufacturer’s selling price. But products with price marks are giving shoppers confidence that they are getting good value for money locally and in an environment offering great levels of personalised service. Does price-marking work better in certain geographics? It is more difficult to establish price-marking in areas of high rent and rates. A retailer operating in an area with high overheads will want to premium price to maintain margins. PMPs obviously restrict this but can still be used in the mix.


• Cash & Carry Management • July 2014

with very attractive price points for the consumer and great margins for the trade.”

Reaping the benefits The growth in value-for-money purchases can be attributed to the economic downturn and the increase in excise duty rates, according to Imperial Tobacco, with PMPs offering reciprocal advantages to retailers and consumers within the tobacco category. Nielsen estimates that one in three cigarette packs sold in the UK are price-marked and account for around 60% of total volume sold within independent outlets.

Nielsen data shows that PMPs accounted for 32.1% of total cigarette volume last year

Are premium products being ostracized because of today’s price-conscious consumer? I think consumers still appreciate affordable luxury purchases. Big brands demanding high prices are still selling well but as part of a planned basket of products. Shoppers are looking for great value and taking advantage of promotions and price-marked packs, but are still splashing out on expensive brands as well. How successful has the integration of price-marking been across Landmark’s own-brand labels? It has proven incredibly successful, especially across LSV – our energy drinks range – and our Lifestyle Value range. Shoppers are buying our Value ranges based on price, and a PMP is perfect for communicating this; hence the packaging is very simple with a bold pricemark. Our mainstream own brands focus on delivering quality and value for money. PMPs have a role to play here too and are more subtly used as part of an eye-catching brand design.





New resealable packaging across all granola ranges means even more benefits: IN THE HOME



Keeps the product fresher for longer


Increased impact on the shelf


Better storage – stands up in the cupboard


Uniform bag height across the range


Easier opening and pouring – less spillage


In line with new SRP


STOCK UP NOW! For all Sales Enquiries please contact SHS Sales & Marketing: Phone: 01452 378 500 Email: info@shs-sales.co.uk


price-marked packs But while Greg Fuller, head of route to market at Imperial Tobacco, believes that PMPs can help retailers protect turnover and increase footfall, he warns cash & carries not to overestimate their importance by overcharging in a pricesensitive marketplace. “Tobacco is a destination purchase for adult smokers, and price-marked packs provide a striking on-shelf presence for retailers to highlight their value to those 12 million UK adults who choose to smoke,” says Fuller. “But like tobacco shoppers, retailers are extremely priceconscious and expect their local wholesaler to have good availability when it comes to selling popular tobacco products. “In an economic climate where retailers and adult smokers are seeking a lower out-of-pocket spend, it is vital for wholesalers to have a number of price-marked packs on display to show retailers they are charging a fair price.” He advises wholesalers to identify peak periods and to implement a stock replenishment system, thereby ensuring all stock is visible and available at all times. From a retailer’s perspective, Fuller points to market analysis from him! which shows that 57% of adult smokers will always buy PMPs if available. Consequently, he recommends that independents chart which brands and pack sizes deliver the best sales in their geographical region, while also utilising Imperial Tobacco sticker tabs to enhance on-shelf visibility of PMPs. To counteract the rising trend in lower out-of-pocket spend, Imperial Tobacco extended its Lambert & Butler range in March by introducing PMPs of L&B Blue (rsp £6.40). Available in packs of King Size 19s cigarettes and a smooth variant, L&B Blue is designed to appeal to long-time value smokers who have previously switched from Lambert & Butler due to economic constraints. Responding to market data which estimates that economy and sub-economy brands account for 43% of all cigarette sales (ITUK), Imperial Tobacco has also introduced PMPs across all of its Gold Leaf variants, from the 9g Handy Pack at £2.79 to the 50g pouch including quality papers for £14.49. Fuller maintains that stocking a range of PMPs can “help alleviate downtrading and ensure stronger margins longterm”.

Cost saving

total cigarette volume last year – a rise of 3.9% over the same period in 2012. And with the value of cigarette PMPs in independents and symbols surpassing 59% of total volume during 2013, BAT shopping marketing manager Richard Wood believes customer loyalty is being driven by value-for-money reassurance. “Downtrading is a trend in the tobacco industry and, as a result, adult smokers are going to be looking for high quality products in the value-for-money and low price categories to meet their needs,” says Wood. He advises retailers to stock BAT’s Rothmans, Pall Mall, and Cutters Choice brands, while also incorporating capsule variants into their existing PMP ranges to offer consumers the “right balance between choice and value”. Elsewhere, BAT has recently upgraded its Pall Mall RYO portfolio by introducing papers to its 20g pouches. According to Pall Mall brand executive Fiona Biggs, the latest development is aimed at “capitalising on the growth in the 20-25g segment and offering papers in 20g packs at the best price in this segment”. She adds: “We decided to offer an upgrade that would give wholesalers and retailers more of an opportunity to cash in on this growth phenomenon. Sales of Pall Mall are trending up, and our message is to stock up and sell more this summer.”

Double-digit growth Priced-marked biscuits in the convenience and impulse sector are now worth over £22 million, are growing at 23% yearon-year and account for 16% of all biscuit sales in the sector (Litmus). In recent years, Burton’s Biscuit Company has doubled its sales of PMPs across brands such as Maryland, Wagon Wheels, Jammie Dodgers and Cadbury, and head of

British American Tobacco (BAT) has revealed that its cigarette and RYO tobacco market share grew by 0.19% and 0.07% respectively from March to April 2014 (Nielsen), with a number of its value-centric PMPs currently generating between 8% and 15% POR for retailers. Nielsen data shows that PMPs accounted for 32.1% of


• Cash & Carry Management • July 2014




een driven b s a h th w ro g s k 58% of soft drin * s k c a p d e rk a -m by price rked packs a -m e c ri p rm e -t g Great value, lon Drinks ft o S rr a B m o fr available


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price-marked packs customer category management David Costello feels that PMPs have a key role to play in driving category growth. “Our price-marked packs provide accessible price points to many of Britain’s best-loved biscuit brands, attract new customers and encourage both brand loyalists and high numbers of impulse buyers to purchase,” he says. “Convenience channel shoppers are reacting to the rising cost of living by looking for market-leading products that offer good value for money and provide a treat. That’s where the Burton’s Biscuit portfolio comes into its own.” In April, Burton’s launched a £1.29 price-marked variant of Wagon Wheels Wheelies, exclusively to the cash & carry trade. The snack-size Original and Jammie flavours, which are available in an eight-pack format, enable retailers to “meet the growing demand for everyday treats at affordable prices, while also accelerating the growth of the £580 million treat sector (Nielsen)”, claims Costello. According to market analysis from Kantar in 2013, Wagon Wheels Wheelies recorded better trial and repeat purchase rates than any other product in the sector. The latest release is geared towards capitalising on 33% of shoppers purchasing biscuits on impulse (him!).

Monitoring the market Tata Global Beverages, producer of Tetley, the best-selling tea brand in impulse, has urged retailers to monitor the prices in their neighbourhood stores, so that they can gauge the level of value being offered with their PMP and let their customers know when they are getting a great deal. Senior customer marketing manager for Tetley, Matthew Dye, comments: “Stores should keep an eye out for the price-marked and extra-value packs that will generate the best sales for them, but take care not to over do it. “Retailers should concentrate on a core selection of products and multi-face key brands, rather than clog shelves with less known names that could prove slow to sell.” Tetley market analysis suggests that shoppers buy tea out of habit and stick to their favoured brands, rather than opting for a cheaper alternative. As a result, Dye recommends Tetley Original 40s as a “great top-up item”, with PMPs of Tetley Original 80s offering “good value at £2.45”. He continues: “Having the right range of teas from trusted brands and demonstrating value for money is key to maximising tea sales, and price-marked packs have a significant


• Cash & Carry Management • July 2014

role in attracting custom and giving reassurance. “Everyday black teas still dominate sales, but there are some strong growth areas in tea, particularly in the healthier sectors like decaf and green, that stores should seek to exploit.” Green teas, in particular, are benefiting from the health trend, and volume sales have risen by 22.4% year-on-year in total convenience.

‘Stores should keep an eye out for the price-marked and extra-value packs that will generate the best sales for them, but take care not to over do it’ Matthew Dye, Tetley senior customer marketing manager Tetley Green Pure 20s and Lemon 20s, which are pricemarked at £1, have been developed specifically for the convenience sector and according to Dye, “present real value, whilst generating a higher margin sale for stores”. He adds: “In a recent trial where we worked with a store owner to review their tea stocks, we introduced packs of Tetley Green Pure 20s for the first time and they literally flew off the shelves.” All data: Nielsen



price-marked packs WHAT THE EXPERTS SAY

Pricing conundrum Taylors of Harrogate has urged retailers to consider the implications of employing a price-mark strategy and to recognise how a disproportionate margin mix can jeopardise their overall business model. Over the last few years, more retailers have displayed PMPs within the hot beverage category due to a growing perception that price points engender consumer trust. PMPs feature heavily across Taylors of Harrogate’s core range of Yorkshire Tea 40s and 80s, as well as other blends including Decaf and Yorkshire Gold. But while out-of-home and convenience controller John Sutcliffe acknowledges the benefits of utilising exclusive PMPs to provide a point of difference to the retail multiples, he believes convenience stores should consider alternative pricing initiatives to maximise profitability. “Each retailer should ensure that PMPs are right for their total business and make sure that they are delivering the appropriate margin for their business to continue to thrive in a challenging market,” says Sutcliffe. “Operating margins should remain as a primary focus. In certain geographical locations, a more affluent consumer may be willing to spend more, so a retailer has a better chance of potentially making more profit through a different pricing strategy.”

Investing in the future Sunmagic has announced plans to extend its PMP portfolio into double figures by introducing a new impulse carton and take-home pack range later this year. Sunmagic, which launched a twoweek radio advertising campaign with Capital FM earlier this month to support its partnership with How to Train Your Dragon 2, currently features nine PMP packs across its portfolio. It introduced a new Premium Cranberry Juice Drink (£1 rsp) in March to exploit a gap in the market for a price-marked one-litre size format.


• Cash & Carry Management • July 2014

Market research company him! reports that pricemarked packs are positively influencing the overall price and value perception of retail stores, with value for money driving the popularity of PMPs across several categories, particularly biscuits, tobacco & cigarettes and soft drinks. Laura Greene (pictured), insight executive at him!, told Cash & Carry Management: “According to one in three UK adults, knowing a convenience store stocks PMPs positively influences their decision to visit that particular store, while 30% of shoppers said they would be more likely to buy a product on impulse if it was a PMP.” Citing discussions with several retailers, Greene claims that reduced profit margins from stocking PMPs are offset by building customer trust and achieving a higher rate of sale than plain packs. She adds: “The range of PMPs can influence a retailers choice of wholesaler and which NPD to stock. “In a recent survey, 37% of retailers said that the availability of PMPs has a strong influence on their choice of wholesaler, while 63% of retailers said they would be more likely to stock a new product if it was released in a PMP format, as well as a plain pack. “Of course, a PMP on its own is not enough to secure sales for new products, but alongside additional promotional and display activity, it can accelerate trial.”

Brand manager Razin Ali remarks: “We have seen sales of our price-marked packs increase substantially in the last year, albeit from a small base as we only launched our first pricemarked packs in July 2013.” He adds: “It is a category we have chosen to invest heavily in as price-marked packs are a consumer trend which we believe is here to stay for the foreseeable future.” Ali points to the recession as an instrumental factor in consumers favouring value for money over premiumisation and he advises retailers to display visible price points and product descriptors for increased prominence. “Price-marked packs help consumers to make a quick decision about what to buy, which is incredibly important, particularly within the impulse sector. Price-marked packs therefore provide extra standout for brands which we believe can only be a positive thing,” he concludes.


price-marked packs Surveying the market Diageo advises retailers to increase in-store PMP prominence by stocking smaller spirit sizes (50cl, 35cl, 20cl) and featuring premixes and smaller packs of beers and RTDs in their chiller cabinets. Diageo’s shopper understanding research has revealed that 60% of shoppers would not consider buying beer from a convenience store unless it was price-marked, while 65% of convenience shoppers said that they would buy premixed cans if price-marked (him!). Paul Isherwood, head of category development – off-trade GB, points to Diageo’s ‘two for £3’ mechanic on its bestselling premix cans as evidence of its commitment to helping retailers “offer greater value and increased rate of sale”. Thirteen months ago, Diageo introduced a pre-filled 20cl counter top unit to drive sales of fractionals within the convenience sector and encourage trial of different spirits. The unit, which contains price-marked bottles of Gordon’s, Smirnoff and Bell’s (£4.69 PMP), is designed to “overcome the barrier to purchase in convenience that often arises when spirits are kept behind the counter,” says Isherwood.

Competitor differentiation Pernod Ricard UK remains committed to utilising PMPs, despite its competitors continuing to favour other pricing and promotional structures. An increasing number of wine manufacturers have been slow to incorporate PMPs into their portfolio, but according to Chris Ellis, commercial director for wines at Pernod Ricard UK, price-marked bottles represent an “important profitdriving mechanic”.


• Cash & Carry Management • July 2014

He says: “Price-marked packs enable independent retailers to offer a point of difference and we have seen great success in offering PMPs across our leading wine brands Campo Viejo and Jacob’s Creek.” Pernod Ricard reintroduced £6.99 PMPs of Campo Viejo in April last year, before releasing three PMPs across its Jacob’s Creek Classics range in November to drive rate of sale and repeat custom. In 2011, a survey conducted by him! revealed that 86% of shoppers would trust the price of a PMP over the shelf price and that 79% of customers viewed PMPs as a promotion. As a result, Ellis has revealed that Pernod Ricard will be “kicking off another phase of price-marking on Campo Viejo Tempranillo later this year which will help the independent sector drive sales and profits”.

Stocks and shares Swizzels Matlow, the UK’s largest independent familyowned confectionery manufacturer, believes consumers are becoming increasingly price conscious and opting for a ‘big night in’, with sharing bags such as £1 PMP Loadsa Sweets and Loadsa Lollies contributing to 9% year-on-year growth in the hanging bag category. Boasting the top 10 variety packs in the UK market,






Enjoy Cam E Campo po Vie Viejo jo Res Respon ponsib sibly. ly. *HI H M! Pri Price ce Mar Marked ked Pa Pack c Stu Study dy 201 2 1.. **N **Niel i sen MA MAT T Off Off Tra Trade de Val V ue Sales 01022014.

price-marked packs BUYER’S VIEW FROM HQ John Kinney (below), retail director at Today’s Group, argues that the increasing popularity of PMPs has had a detrimental effect on premium pricing, with several convenience retailers struggling to compensate for lowmargin products. “Price-marking has been serving a purpose to bring trust back to the consumer but these packs are becoming so widely used now that they have changed the whole economics and business models for shop owners, who are complaining that they can only purchase price-marked packs,” says Kinney. “This is one of the biggest challenges facing many convenience stores and, unfortunately, there aren’t too many categories left where store owners can use premium pricing to offset the squeeze in price margins. There is a danger that an everyday low pricing (EDLP) strategy will be used across all shops, with a limited option to promote because the margins are so tight. “In certain categories, stores should be pushing sales of two or three packs of products which consumers buy frequently to maintain and increase cash value. “I expect to see a strong pushback by suppliers who cannot afford to use price-marks across their whole fixtures. I don’t think the market can continue at this rate without a significant re-engineering by suppliers to make price-marking more viable.”

Swizzels relaunched its Squashies range earlier this year and it is now available as countlines, hanging bags and £1 PMPs to ensure all consumer eating occasions are met. Swizzels sales director Mark Walker says: “Squashies countline bags are perfect for an impulse purchase and the £1 PMPs have great impact on shelf. Sharing bags of confectionery such as Squashies are becoming increasing popular for family and friends hosting a ‘big night in’.” Featuring soft, chewy gum formats of Double Lollies, Drumstick Lollies, Love Hearts and New Refreshers, Squashies has generated almost £50 million in sales since first launched in late 2012 and has contributed to 17% and 9% growth in the kid’s sugar convenience and gums & jellies categories respectively. All data: Nielsen


• Cash & Carry Management • July 2014

Brand development Cloetta has extended its PMP range of Chewits – the UK’s fastest growing chewy sweet brand (Nielsen) – by launching £1 packs of Chewits Chewmix and Xtreme Chewmix. The new promotion, which is displayed across 125g bags only, is aimed at “strengthening Chewits 28% year-on-year growth and offering exceptional value to its customers”, according to trade marketing manager Bev Seymour. In 2011, him! revealed that 94% of consumers would buy a PMP confectionery multipack from a convenience store if available, while 48% of people disclosed that they would be willing to switch brand allegiance to purchase a pricemarked product. As a result, Seymour feels that PMPs are critical in achieving positive price perceptions and expanding Chewits’ customer base. “The tough economic climate has really been driving the growth of the ‘big night in’ category. We’re seeing more families spending time together on the sofa. “Consumers are also spending more time than ever before shopping around for savings, so price-marked packs are an effective way to reassure them they have a product that offers value, whilst helping to gain brand loyalty,” says Seymour. Chewits Chewmix contains favourites from the core range, including Strawberry, Blackcurrant and Fruit Salad, while Xtreme Chewmix features a combination of Xtreme Sour Apple and Xtreme Sour Tutti Frutti flavours.

Promotional plea Kepak Convenience Foods (KCF), the manufacturer of the UK’s best-selling range of micro-snacking products (IRI), recommends that cash & carry depots utilise on and off promotions and exploit the rising demand for its price-marked ‘hot, quick & tasty’ products. John Armstrong, marketing director at KCF, told Cash & Carry Management: “Retailers know that today’s pricesensitive shoppers are looking for value for money and are reassured when they see market-leading brands in pricemarked packs. “Standard price-marked packs deliver higher cash margins than launch or promotional offers and therefore it’s important that depots stock price-marked pack products on and off promotion.”



price-marked packs

‘Retailers know that today’s pricesensitive shoppers are looking for value for money and are reassured when they see market-leading brands in PMPs’ John Armstrong, marketing director, Kepak Convenience Foods Responding to market data which forecasts that 13% of UK adults intend to buy more price-marked packs over the next 12 months (him!), Kepak unveiled the biggest marketing investment of any micro-snacking brand in the UK earlier this year. The UK’s three best-selling micro-snacking products – Rustlers Quarter Pounder, Chicken Sandwich and BBQ Rib – all feature as permanent PMPs and KCF report that consumer awareness and recall of the Rustlers brand has been boosted following the recent £1.5 million national ‘Hunger Monkey’ TV campaign.

Income generator “The PMP category has been a crucial factor in our sales over the past 18 months, with our 99p Hit range selling over a packet a minute for the past 12 months, making it a bestseller in the convenience channel (IRI),” reports Bahlsen trade marketing manager Julien Lacrampe. Last year, Bahlsen enhanced its Hit range by launching Fun Sticks, and the family-run luxury biscuit company has revealed plans to evolve its best-selling brands by implementing a modern design on Hit packs and introducing new variants. Lacrampe comments: “PMPs have proved an enormous driver for our Hit range and also generated a marked uplift in sales. The success of introducing the PMPs is certainly something we’re now considering rolling out across our other products.


• Cash & Carry Management • July 2014

“The IRI figures demonstrate that this strategy has proved a great success, and we’ll continue to work with retailers to drive sales further and give them what they – and their customers – want.” In order to “build an alliance with retailers and respond to their needs”, Bahlsen works closely with the wholesale channel by organising trade days, offering category advice and arranging incentives such as coupon redemptions to understand their customers’ buying patterns. Lacrampe adds: “These events include us providing attractive ‘deals of the day’ on some of our best-sellers, including the Hit 99p range, and providing sampling opportunities to retailers, advising them of Bahlsen’s background and the deals available. “These activities actually led to recordbreaking sales – proof in itself that the best way to achieve success within the wholesale channel is to work together.”

A blueprint for success Eighteen months after updating its product portfolio with a plethora of price-marked on-the-go and future consumption packs, Coca-Cola Enterprises (CCE) has announced that its Relentless brand posted 15.1% and 5.6% growth in volume and value respectively over the past 12 months. Since the turn of the year, CCE has extended its PMP range by launching Relentless Cherry to replace its Berry Juiced variant. Responding to consumer feedback, CCE also rebranded its sugar free alternative to Relentless Origin Ultra in March, in turn providing a less prominent call-out of the product’s low calorie proposition. Dave Turner, trade communications manager at CCE, says: “Product innovation has been one of the main drivers of this growth, together with comprehensive above and below-the-line support, which has helped to drive awareness of the brand among its target 18-29 demographic. “In terms of innovation, the introduction of several new and refreshed products has helped to drive incremental growth. We offer 500ml Relentless packs, price-marked at £1, which provides shoppers with visible value for money and encourages them to make an impulse purchasing decision.” Elsewhere, CCE has launched a new television series, in collaboration with brand ambassador Zane Lowe, to boost consumer awareness. Relentless Ultra Presents Soundchain, which airs on MTV Music until midOctober, aims to reinforce Relentless’s alignment with the music industry and features interviews and live performances from the likes of Kasabian, Ed Sheeran and Biffy Clyro. Caroline Cater, operational marketing director at CCE,







Trade enquiries welcome

and many other leading wholesalers.

price-marked packs ‘live-for-the-moment’ spirit of the age group, while satisfying the demand for immediacy, helping to push Capri-Sun as an active, out-and-about brand. “Through this promotion, together with our 89p PMPs, effective point-of-sale activation and London-based sampling programme, we’re confident that retailers will reap the benefits as consumers look to ‘Squeeze The Day’.” All data: Nielsen

Planning for the future

Radio DJ Zane Lowe is a brand ambassador for Relentless.

comments: “Relentless Ultra Presents Soundchain promises to align us even more closely with the musical passions of our target demographic, and we’re confident that this will have a positive impact for retailers in-store.” The seven-part series is supported by a new Relentless mobile app, which offers users the chance to view exclusive footage from the programme and win tickets to Reading and Leeds festivals, as well as VIP experiences to an exclusive Relentless Live gig in November. Elsewhere, CCE’s Capri-Sun brand is helping retailers drive summer sales with the launch of a new on-pack promotion, offering consumers the opportunity to win a ‘oncein-a-lifetime’ experience. Designed to increase the appeal of 330ml packs of CapriSun to its target 20-30 year-old demographic, the ‘Squeeze The Day’ promotion offers 100 consumers the chance to win one of 20 different ‘bucket-list’ prizes, including flying lessons, a chance to swim with dolphins and holidays to Paris, Rome and Venice’s Il Carnevale. The promotion, which runs across six million packs until the end of August, features on Orange 330ml 89p PMPs and Orange and Apple & Blackcurrant standard 330ml packs. Phil Thomson, associate director of portfolio brands at CCE, says: “The campaign supports the


• Cash & Carry Management • July 2014

Cott Beverages has announced plans to continue integrating PMPs into future product launches, following the successful launch of Emerge Zero – a new sugar-free variant. Available in 250ml cans and price-marked at 35p, Emerge Zero is aimed at augmenting brand awareness by specifically targeting independent retailers who exclusively feature PMPs on-shelf. Calli O’Brien, brand manager at Emerge, told Cash & Carry Management: “We support our network of retailers with a variety of PMPs, especially across our Emerge range, helping them to communicate price and save valuable time. “We have included PMPs as a valuable format alongside non-PMP variants across our entire portfolio. It has formed an important element of all product launches to date and we intend to continue to include PMPs in future exciting product launches as well.” In order to increase product visibility and maximise sales, O’Brien recommends that retailers stock a full range of flavours so that the most effective shelf appeal can be achieved, in turn drawing more consumers to the fixture. She adds: “The Emerge range has great shelf appeal and this, paired with the low price point, allows consumers to mix and match as they please amongst the variety of flavours and light options we have available.”

For further information: AG Barr (01204) 664295 Bahlsen (01923) 728500 Boost Drinks (0113) 240 3666 British American Tobacco 020-7845 1000 Burton’s Biscuit Company (0151) 676 2352 Cloetta (01772) 674684 Coca-Cola Enterprises (08457) 227222 Cott Beverages (01509) 674915 Diageo 020-8978 6000 Imperial Tobacco (0117) 963 6636 Kepak Convenience Foods (0800) 783 4321 Pernod Ricard 020-8538 4484 Sunmagic 020-7274 6090 Swizzels Matlow (01663) 744144 Tata Global Beverages (0800) 387 227 Taylors of Harrogate (01423) 814000


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