C&C Management June 18 by Cash & Carry Management

SPOTLIGHT ON JO BAKER OF MJ BAKER FOODSERVICE

THE BUSINESS MAGAZINE FOR CASH & CARRY/DELIVERED WHOLESALERS

Winners of the inaugural CCM Chefsâ&#x20AC;&#x2122; Own-Brand Awards are announced

BLAKEMORE BREAK-UP

Three closures and a sale: the departure of a major player from cash & carry

Tapping into food and drinks on the move

JUNE 2018

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Contents

June 2018

This month don’t miss... 09

Best-one chain recruits 125 more stores between January and April.

Lifestyle Express retailer Raj Kaur presents at Landmark conference.

Cricket fan Jo Baker at Lords with England professional Jos Buttler.

ESSENTIALS 05 06 16

Editor’s Comment Industry News Products & Promotions

FEATURES 12

In Focus At Landmark’s annual conference held in Alicante, managing director John Mills emphasised the need for long-term strategies.

Spotlight Jo Baker, managing director of MJ Baker Foodservice.

CCM Chefs’ Own-Brand Awards The well-deserved winners were rewarded at a special lunch expertly prepared by chefs of the future.

SWA Conference The Scottish Wholesale Association continues to address issues of concern to its members.

The CCM Chefs’ Own-Brand Awards celebrated the best foodservice own-label products at an exclusive lunch for winners and special guests.

Promotio n of the month

CATEGORY INSIGHT 32

Food & Drinks On The Go The convenience sector is perfectly placed to respond to today’s graband-go consumer.

Tobacco, Accessories & NGPs Tobacco pricing remains a key focus for the independent channel.

Steps that Booker is taking to improve customer satisfaction.

Mateus Rosé Acoustic Picnics will take place at The Big Feastival.

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June 2018

[ EDITOR’S COMMENT ]

Clubs put on a good show imple concept, clubs. Give retailers something they need for nothing, or little outlay, and you have them returning time after time, spending on food, drinks, non-foods and anything else they want for their business. Sounds easy, doesn’t it? But shopkeepers are fickle. They might want more than you’re offering; they might be attracted to another cash & carry or wholesaler, or even with the perks, they succumb to the opposition down the road. Nonetheless, retailers sporting an eye-catching fascia, stocking a range of own-label goods and carrying a selection of promotional lines usually have more appeal than the independent with no overt allegiance. Some of our biggest groups and companies have made no secret of how invaluable the whole concept is. Take Today’s, for instance, which is targeting 10% growth over the coming year in the number of symbol stores and retail club members. Around 300 additional shopkeepers, over England, Scotland and Wales, could be added over this period. Then there’s Bestway, whose bestone chain has grown by 125 outlets in the first four months of the year and is rapidly nearing the 2,000 mark. It’s amazing progress for a name that is comparatively new compared with its sister Best-in, which was there almost at

SPOTLIGHT ON JO BAKER OF MJ BAKER FOODSERVICE

BLAKEMORE BREAK-UP

Three closures and a sale: the departure of a major player from cash & carry

the start when the UK’s second largest C&C operator was formed 42 years ago. SPAR Northern Ireland wholesaler Henderson Group has also been expanding its symbol network – not quite as extensively as Today’s and Bestway, but it is growing nonetheless. The question is: where are these extras coming from – previously unaffiliated traders who have finally realised that having a reclusive nature is the way to decline, or those dissatisfied with their present club credentials? And if it’s the latter, which concerns are losing out? It’s difficult to get an accurate picture on this because C&C/operators like to keep their cards close to their chest. There are always going to be swings and roundabouts in the membership battle and it doesn’t mean because some names have not been mentioned in the foregoing that they have seen their chains losing favour. As far as Bestway is concerned, what has been evident is the dwindling number of green and red Best-in shops, which once flooded the high street. Indeed, they are almost non-existent. What has happened is that the majority now sport the best-one stand-out name and more attractive shop appearance – an example to others of the importance of refreshing your image.

Mervyn Gilbert News Editor

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June 2018

[ INDUSTRY NEWS ]

‘Strong progress’ In the first 90 days of Tesco’s acquisition of Booker, the business has made strong progress, said Stuart Hyslop, managing director, catering & small business. Booker ranges have been introduced in 54 Tesco stores, and there is a plan for a reciprocal arrangement. A Booker Chef Central department opened at the Tesco Extra store in Bar Hill near Cambridge, and more are scheduled to open at other Tesco branches this month. Additionally, Click & Collect trials will run in areas of low Tesco share. a Tel: Booker Group (01933) 371000

Dhamecha pladis trial Pladis is aiming to enhance its ‘Better Biscuits’ category initiative through a bespoke trial with Dhamecha’s seven London depots. The purpose of the trial is to identify the impact and sales growth of providing guidance in five languages: English, Hindi, Tamil, Urdu and Polish. Hena Chandarana, head of customer marketing – convenience at pladis UK&I, said: “Dhamecha recognised that for many of its customers, English may not be their first language and this can act as a communication barrier. Following this feedback, it was important for us to develop information that is easily digestible, accessible and easy to understand for all.” a pladis 020-8234 5000 a Dhamecha 0208-903 8181 06

June 2018

Pumped-up business Apart from first-time income from its latest branch in Wembley, north London, Costco Wholesale last year felt the benefit of having more petrol forecourts. Another six sites allowed motorists to fill up in the 12 months to September. These, plus the most recent forecourt opening at the Glasgow depot, means the company now has fuel availability at 13 of its 28 sites in the UK. Yet while sales rose by

nearly 15% to £2.4 billion, operating profit decreased by 22.4% to £14 million,

largely due to the cost of management incentives. a Costco UK (01923) 213113

Tough stance on packaging Brakes has launched a campaign to eliminate the use of non-recyclable hard black plastics for packaging ownbrand products by the end of 2020. The ‘2 Zero 20’ initiative began on 5 June – World Environment Day – with none of these materials being used for any new Brakes lines. CEO Hugo Mahoney said: “We recognise that the foodservice industry needs to be more proactive in being responsible users of plastic. We also know that consumers

Hugo Mahoney

are asking our customers what they are doing about plastic and we are therefore giving them the solution that they need. “We will be working with some of the UK’s leading

foodservice brands and suppliers as part of our packaging forum as we seek to find alternatives to problematic materials and unnecessary single-use items, with a focus on items within our catering disposables range, such as hard black plastic food containers and straws.” Mahoney added: “We hope our example will encourage other foodservice wholesalers, large and small, to take a similarly proactive stance to addressing this issue.” a Brakes UK (01233) 206000

Ecommerce firm gets savvy Savona Foodservice, a Country Range Group member with branches in Kidlington, Oxon, and Ilfracombe, Devon, is working with artificial intelligence company 443 Al to have a “viable, meaningful digital relationship with customers”. Head of the IT concern, Jason Finch, has experience of the sector having previously worked in collaboration

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with Palmer & Harvey. He said his intention is to “bring all the best of the ecommerce experience to the complexity of managing foodservice customers”. He added: “Savona get it. They know what their customers need and they know how to express that as both a technical integration and a customer experience.” The wholesaler’s sales &

marketing director Kelly Williams said: “I’m excited about the journey we have started with Jason and, seeing what I have already seen, it tells me that we could not be in better hands.” Williams was previously with Ilfracombe Wholesale Grocers before its acquisition by Savona in 2016. a Savona Foodservice (01865) 852010

[ INDUSTRY NEWS ]

Gateshead site for Glasgow firm AF Blakemore & Son, which recently announced that it would be exiting the C&C arena (Cash & Carry Management: April) has sold the first of its 12 branches. The purchaser of the 76,000 sq ft Gateshead depot is fellow Landmark member Glasgow-based United Wholesale Grocers, which operates in Springburn and Polmadie and has an annual turnover of £140 million. All 45 employees have been retained. The cash & carry, formerly operating as Tyne Tees C&C, was originally bought by Blakemore in 2008, along with the north-east company’s Middlesbrough unit. It is understood that UWG was also looking at other Blakemore sites but decided on just the one, which will shortly adopt the United Wholesale Grocers signage.

UWG managing director Amaan Ramzan (left) and trading director Waqas Badar.

Managing director Amaan Ramzan said: “At a time of consolidation and change in the sector, we have recognised the need to invest in both our business and the wholesale sector as a whole. “We, like other Landmark members, are firmly focused on identifying opportunities for growth and this deal signifies a clear step forward in our plans for expansion.

“We have some incredibly exciting plans for the Gateshead depot, which we will share in due course.” Operations director Rahan Al-Irshad told Cash & Carry Management that “two other major players in Scotland” had bid for the Gateshead C&C. “This multi-million-pound purchase could be a stepping stone to other towns and cities,” he added. John Mills, Landmark Wholesale MD, commented: “We are absolutely delighted the Gateshead depot and all members of staff will remain within the Landmark family. “We hope that other Blakemore depots will also be bought as going concerns, preferably by our members or others in the wholesale sector.” a United Wholesale Grocers 0141-557 2255

Finishing with Arlacrity Last month’s Windermere senior vice president sales, Row, sponsored by Mars said: “I feel blessed to Wrigley Confectionery, work in an industry in raised more than £65,000 which it’s possible to parfor GroceryAid – enough ticipate in an event where to provide 216 respite top talent from our indusbreaks for those in need. try can engage in a comAll 25 teams completed petitive environment and the 11-mile course, the raise money for a worthy The team from KP Foods won the cause.” fastest from Arla Foods. Best Endeavour award. The next Windermere After their strenuous Row has been scheduled efforts, 180 people enjoyed for 11 May 2019. awards were presented. themselves at an evening a GroceryAid (01252) 875925 Ash Amirahmadi, Arla party where the day’s

Lomond draws the crowds More than 250 businesses attended Glasgow-based Lomond – The Wholesale Food Co’s second trade show, held last month.

The focus was on fresh produce, including salads and prepared veg, to be launched in July; food-to-go solutions and equipment;

bakery; marinades; Scottish products; and cake (with new branding). a Lomond – The Wholesale Food Co 0141-353 6777

New MD to be chosen Sugro UK, whose longserving managing director Philip Jenkins left six months ago, is now looking for a replacement. When he quit the £1.1 billion Nantwich-based buying consortium (Cash & Carry Management: January) after 17 years’ service, a statement said that he would be retained on a consultancy basis and that day-to-day operations would be handled by financial controller and company secretary Lesley Clarke, together with head of trading Matthew Oxley. New group chairman is Tony Cox, of Splendour Wholesale, Watford. He has recently taken over from Ross Gourlay, MD of Sugro Glasgow member Glencrest, who has completed his twoyear stint. a Sugro UK (01270) 628728

Cod loins M&J Seafood, part of Brakes Group, has launched crumbletopped cod loins. The sustainably caught, skinned and boned fish, topped with light mashed potato and hard cheese, comes in its own ‘easy-bake’ paper packet that goes straight into the oven. The cod loins are supplied frozen in packs of 20 and weigh between 170g200g each. a M&J Seafood (01296) 610600

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June 2018

[ INDUSTRY NEWS ]

Henderson sales up 8.5%

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Snacks drive Bestway Wholesale has combined with PepsiCo in a promotion to drive sales in the savoury snacks category. Open to best-one and Xtra Local shopkeepers, as well as Bestway and Batleys unaffiliated customers, the free prize draw offers a Renault Kangoo van to the winner, plus a year’s free insurance and £100 worth of Walkers products. To enter, retailers must purchase three cases of qualifying Walkers lines, including standard, ‘Big Eat’ and multipack formats. Matt Goddard, PepsiCo wholesale trading director, said: “The savoury snacks category continues to grow within the convenience and impulse channel.” The Bestway promotion runs until the end of August. a Bestway Wholesale 0208453 1234 a PepsiCo (0800) 274777

Despite a 1.5% dip in Henderson Group’s pre-tax profit to just over £20 million in the year to 31 December, the company’s SPAR Northern Ireland business lifted sales by 8.5% to £759 million. The directors reported good performances in fresh and ambient grocery, more customers and heavier spending. An increase in shopkeepers, investment in both company-owned stores and retail partners, and a near 18% rise in sales from foodservice were other plus factors. During the year, 11 company-owned stores were

Chief finance officer Ron Whitten (right) with sales & marketing director Patrick Doody.

added and 25 were gained from other symbol chains. Chief finance officer Ron Whitten said that EuroSpar stores, with an area of

around 5,000 sq ft, had achieved more than 8% sales growth. a Henderson Group 0289034 2733

Blakemore branch closures Blakemore Wholesale, which has completed the sale of its Gateshead branch to United Wholesale Grocers (see page 7 of this issue) has closed three cash & carries where there was insufficient interest from prospective buyers – Killingworth, near Newcastle upon Tyne, Barnsley and Newport. The likelihood is that the Wolverhampton head office function will also close. The Killingworth unit, operating as Lowries until its purchase by Blakemore in

Blakemore Barnsley has closed its doors.

2013, had around 40 staff. The 40,000 sq ft Barnsley cash & carry, with about 30 employees, and the one in Newport, cease trading on 15 June.

No decision has been made yet regarding the sale or closure of the remaining eight C&C branches. a Blakemore Wholesale (01902) 371515

New look for SPAR ready meals SPAR has redesigned its own-label ready meal range with a “fresh & foodie” look. The price is two for £5.50 – the same as for standard chilled pizza. The symbol chain’s ready meal range is worth over £6 million in retail sales, said 08

June 2018

Cath McIlwham, head of SPAR Brand. She added: “The chilled ready meal market is growing by 6.5% year-on-year; standard-tier ready meals account for 77% value share of the category.” a SPAR UK 020-8426 3700

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Some of the redesigned packs.

[ INDUSTRY NEWS ]

Matthew Clark parent dips C&C Group, which recently took over Matthew Clark and Bibendum, experienced a dip in turnover in the year to 28 February from 576.2 million euros to 548.2 million euros. The Dublin-based supplier of branded cider, beer, wine, soft drinks and bottled water reported that earnings before interest, taxes, depreciation and amortisation dropped from 107.2 million euros to 100.4 million euros. While there were strong performances by Tennent’s, Magners, premium drinks and wholesaling in GB, Irish

domestic income suffered from competitive pressures, the one-off impact of a cider distribution deal with AB InBev and currency adjustments. C&C Group directors said the acquisitions of Matthew

Clark and Bibendum and investment last year in the Admiral Taverns pubs chain will “significantly strengthen” its UK route-to-market access. a C&C Group (003531) 506 3900

Free fish & chips JJ Food Service is partnering with Kingfisher Fish & Chips to offer local businesses free samples during its national trade days. The wholesaler will be showcasing a range of leading brands from companies including Innocent Drinks, Coca-Cola, Lavazza Coffee, New York Bakery, Kerry Foods, Paragon Quality Foods and Pukka Pies, together with private label products.

Pride of place for ‘heroes’ Landmark Wholesale has tagged six of its own-brand lines as ‘hero’ products. Each is being highlighted in members’ cash & carries with prominent displays together along with dedicated PoS material. The six are: Bellarini Sparkling Perry, LSV Energy Original, LSV Isotonic Orange, White Storm cider two-litre, Prince Consort vodka

and Lifestyle granulated sugar. Jon Burton, group senior trading controller, said: “These ‘hero’ products have been selected for their exceptional value in the marketplace for retailers and their proven track record when it comes to sales.” Landmark’s foodservice division has added seven fruit products to its Caterers

Kitchen own-brand. They are: Apple Pie Filling 2.5kg, Apple Sauce 2.5kg, Blackcurrant Pie Filling 2.5kg, Cranberry Sauce 2.5kg, Mincemeat 3kg, Red Cherry Pie Filling 2.5kg and Strawberry Pie Filling 2.5kg. Foodservice catering controller Les Mohammed said: “The products have a higher fruit content than some of the branded ranges.” a Landmark Wholesale (01908) 255300

Growing best-one symbol chain Bestway Wholesale’s symbol chain best-one has recruited another 125 stores in the first four months of the year. The current total is 1,827. Sales director Tony Holmes said that the newcomers were from all regions and that best-one’s overall year-on-year sales were up by 19.6%. He added: “The response we’ve had has been nothing

short of sensational. The collapse of P&H was obviously the catalyst, but this year we have seen unprecedented interest in the group from many other symbols and

unaffiliated retailers. “At the end of February, we announced that best-one had recruited 60 retailers since the turn of the year. March and April have seen this momentum continue, with even more stores signing up.” Bestway’s investment in chilled, fresh and own-label had helped “immensely”. a Bestway Group 020-8453 1234

The events, which were held earlier this month at JJ’s Enfield and Dagenham branches, are also taking place at the Sidcup depot (17 June), Bristol (1 July), Birmingham (29 July), Leicester (5 August), Newcastle (12 August), Doncaster (2 September), Manchester (9 September) and Leeds (16 September). a JJ Food Service (01992) 701701

Wealthy In The Sunday Times Rich List, Bestway chairman Sir Anwar Pervez’s wealth is given as £3.01 billion (up £145 million) and Booker chief executive Charles Wilson’s is unchanged on £280 million. New entries this year include James Watt and Martin Dickie who set up the BrewDog craft ale business.

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June 2018

[ INDUSTRY NEWS ]

Thomson returns Steve Thomson (pictured) has rejoined drinks wholesaler Matthew Clark (now owned by C&C Group) as executive chairman.

He was previously chief executive of Matthew Clark Group until it was acquired by the Conviviality Group in 2005. During his time with the company (from 2002), it established itself as the UK’s leading drinks distributor, adding large new customers and suppliers, the majority of which are still associated with the business. Thomson’s new role will be part-time (two days a week). He will work with David Phillips, formerly group finance director and now managing director, to stabilise the business over the coming year. a Matthew Clark (01275) 891400

Today’s targets 10% rise Today’s Group has embarked on an ambitious expansion programme that could see 10% growth in the number of retail club members (currently 2,923) and symbol stores (494) over the coming year. Marketing controller Anita Oakhill told Cash & Carry Management: “Our aim is to grow the Today’s symbol and retail club estate nationally by around 300 during the next 12 months. We operate nationwide, including the Scottish Highlands and Islands and Ireland.” The symbol store chain has 50% of its members located in Scotland and 25% in Ireland. England also accounts for 25%, with 72% of the stores in the north, 20% in Greater London and 8% on the Isle of Man. Some 66% of Today’s

retail club affiliates are based in Greater London, 16% in the Midlands, 12% in Scotland, 5% in the north and 1% in the south-west. The wide range of fascias includes the Today’s name followed by such suffixes as Extra, Local, Express and Drinks, plus Day-Today and Day-Today Express in Scotland. Explaining the difference between Today’s symbol retailers and club members, Oakhill said: “Symbols are offered a higher level of

support in terms of space planning, range and merchandising guidance from business development managers, as well as being provided with the fascia, window graphics and internal signs. They are also provided with exclusive promotions on a three-weekly basis. “Club members can take advantage of Today’s everyday value three-weekly promotions available through our wholesalers.” a Today’s Group (01302) 249909

Time for a new move in Essex Time Wholesale Services, a member of Landmark Wholesale, has moved from Barking, Essex, to a site on Fairview Industrial Park in Rainham – “five minutes’ drive away”. Managing director Sony Bihal said: “There is less traffic from the east and west of the A13 and improved

security for customers’ safety. “We also have 40 dedicated customer parking spaces on a level surface.” Bihal, whose co-director is brother Nev, added that the new site allowed the company to extend its range of chilled, frozen and ethnic foods. The depot also has faster

checkouts and a click & collect point. Turnover last year at the former 50,000 sq ft Barking depot, where the company had a staff of more than 70, was around £55 million. The company has about 1,200 retail customers. a Time Wholesale Services 020-8595 7830

Success for N Ireland symbol retailers Two competitions have been won by retail customers of Today’s Group member Savage & Whitten, of Newry, Northern Ireland. In the group’s first threeweek ‘Big Brand Event’, Stuart McDowell, who runs the Today’s Extra store in 10

June 2018

Clabby and who had to build an eye-catching display of featured products, received £250 in cash from pladis. The initiative also included products under the McVitie’s and Jacob’s labels. Today’s marketing controller Anita Oakhill said:

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“The Big Brand Event is a year-long campaign that will provide retail customers with some fantastic deals and great competitions to enter. “We have purposely asked that the brand owners make the competitions easy to enter, as we understand

the time constraints independent retailers are under.” Darren and Karen Craig, who have a Today’s Extra store in Derry, won a ‘Take a Bite, Win a Flight’ promotion in conjunction with Pringles. a Today’s Group (01302) 249909

WITH MATEUS, THE FUTURE LOOKS SO BRIGHT, IT’S ROSÉ For year round Rosé wine sales worth raising a glass to, Mateus is a must-stock.

✔ Highly recognised top 5 Rosé wine brand.* ✔ Highest spontaneous awareness of any Rosé wine brand.~

✔ Instantly recognisable, iconic bottle shape. ✔ Mateus drinkers demonstrate more brand

loyalty than drinkers of any of the other top 6 Rosé brands. ~

✔ Fastest growing off-trade weighted rate of sales amongst top 6 Rosé brands.*

✔ Stable year-round sales, even beyond summer period**

✔ Over 2 million 9 litre cases of Rosé sold

annually through independent off-trade.*

STOCK UP ON MATEUS ROSÉ TODAY! * AC Nielsen w.e 24.03.2018 Rosé Wine. ~FLY consumer survey of > 2,000 UK wine consumers 18-55+. **Based on sales out data 2014-2017

[ IN FOCUS ]

Exploration of new horizons At Landmark’s conference in Alicante, managing director John Mills (right) emphasised the need to build a long-term growth strategy. After the event he spoke to Cash & Carry Management’s managing editor Kirsti Sharratt.

he NASA spacecraft New Horizons, launched in 2006, is not only the fastest to have been propelled away from Earth but also the first to explore Pluto and the Kuiper Belt. What relevance does that have to Landmark Wholesale? Managing director John Mills explained: “To set out on a mission like that required vision, investment, resources, fantastic technology, advanced thinking and other attributes like hope, ambition and patience. “In our own changing and consolidating market place, we need to look to new horizons and have that kind of vision too – we need to be calm and build a strategy for growth that is 10 or 20 years out. We can’t keep doing the same things and expect different results.” It was this point that Mills was keen to impress on the 180 delegates at the

group’s recent conference in Alicante. Alongside this he highlighted some of the opportunities available to members, suppliers and customers arising from changing consumer habits: a Premiumisation. a ‘Craft’ and local products. a Food to go. “We are still massively under-indexing on food to go in the independent retail sector – it accounts for 13% in independent stores (and is declining) versus 20% in the managed multiple convenience chains (HIM). We only have to look at Spar or visit convenience chains in Ireland to see it being done well,” said Mills. a Health & wellbeing. “When I walk round cash & carries I see the same old ranges. Suppliers are coming to us with new and interesting things – we have to have a health & wellbeing section to influence retailers,” he maintained.

Panel members (left to right): Jill Livesey of HIM, Hyperama’s Marcus Singh, James Bielby of the FWD, PepsiCo’s Matt Goddard, and James Lowman of ACS.

June 2018

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“We need to be brave and go for these opportunities. As a central group, we have to be better with new product launches and relaunches,” he admitted. “We have to make sure we get in early, understand the supplier’s objectives, have the right support package and make sure that members know about it. “We also need our wholesalers to encourage retailers to use our core range planograms and the training packages we offer with Bolt Learning. We know they work – we recently did a big one on wine, and Raj Kaur, a Lifestyle Express retailer in Kilbirnie, Ayrshire, said at the conference that her wine sales had increased by 18% as a result of doing the training and revamping her range.” Having a retailer speak at the event was a first for Landmark; also new for this year was a panel session, chaired by James Lowman, chief executive of ACS (Association of Convenience Stores), and featuring James Bielby, chief executive of the FWD, Jill Livesey, managing director of HIM, Matt Goddard, wholesale trading director of PepsiCo, and Marcus Singh, director of Hyperama. They discussed issues such as pricemarked packs, use of data, social media and the need for collaborative working. On the subject of working in partnership, Mills spoke about Landmark’s relationship with Fairway Foodservice, which joined the group in January. “Fairway has terms with catering frozen food suppliers that it is bringing to the table, while we are able to offer terms for branded groceries. We are also looking at our respective catering own-label ranges to see where there are duplications and gaps, and we plan to tender together, albeit under the two different presentations. “The reason for having associate members – like Fairway, Country Range and Confex – is to try to leverage our buying ability. There are nine buying groups in food and drink wholesaling and I don’t think there is a future for nine. We are working on a number of projects and I would be disappointed if I don’t come up with another move this year,” he said, concluding with an appropriate conference-themed quip: CCM “Watch this space!”

Quorn goes for growth with United Wholesale ™

Quorn, the fastest-growing food brand in the UK’s top 50*, is accelerating its growth in Scotland thanks to a listing of its core frozen range by United Wholesale, Scotland’s biggest independent cash and carry operator.

The range, developed specifically for the convenience channel, is stocked in United Wholesale’s two Glasgow depots and its Grangemouth depot. It includes everyday favourites like Quorn Crispy Nuggets, which has recently been awarded “Netmums Recommends” by the mum’s website. The range also features Quorn Burgers and Quorn Sausages, pricemarked at £2.29 and Quorn Cottage Pie and Quorn Lasagne ready meals, both price-marked at £1.79. United Wholesale has also listed a selection of Quorn’s best-selling chilled lines, including Vegetarian Ham Slices, Chilli and Lime Sliced Fillets and Vegetarian Peppered Steaks.

and the trade day gave us the opportunity to show how many greattasting, healthier meals and snacks you can make with Quorn, at a time when almost half the UK population is looking to reduce its meat consumption. “Meat free is one of the fastest-growing categories in frozen, and with Quorn accounting for over 49% of all frozen meat free sales, retailers are increasingly using Quorn as a beacon brand as part of their ‘meal for tonight’ offering. This is really good news for wholesale stockists.”

United Wholesale’s Trading Director Sean Scrimger said: “It’s key that we review market trends and support products and areas such as meat free that are in growth. We must have the ranges available that consumers demand. To support retailers and help them manage waste, we offer these lines in single products so they can stock the complete range.” Over the next 3 months we’ll be reporting on the impact the Quorn range is making and the importance United Wholesale places on its frozen and chilled offering. Quorn products were formally introduced to retailers at a United Wholesale trade day last month, prompting a really positive reaction, particularly from shopkeepers who hadn’t previously tasted the UK’s No.1 meat free range**. Gary Routledge, National Account Manager at Quorn Foods said: “We know that meat free attracts new consumers into the frozen category

Interested in stocking Quorn? Call us on 01642 717 254.

Pictured left to right, Quorn’s National Account Manager Gary Routledge and colleagues Liz Straw and Michael Billingham prepare to welcome guests to the Quorn stand at the United Wholesale trade day.

* The Grocer Britain’s Biggest Brands 2018 report ** Source: 52 w/e IRI 28 Apr, 18

STOCK UP ON

TODAY

[ SPOTLIGHT ] Jo Baker, managing director of MJ Baker Foodservice

sponsored by

Baker sponsors Exeter Chiefs rugby club and Somerset County Cricket Club. Who has been the biggest inspiration to you? It’s a cheesy answer! My biggest inspiration is my husband Malcolm because he is resilient in spite of setbacks. What most frustrates you in business (and in life generally)? Getting people to understand that change is a good thing. If you stand still you go backwards. MJ Baker has grown because we embrace change and implement innovative and beneficial processes, procedures, technology and a way of thinking. There are often time or cost investments at the outset, but the long-term benefits far outweigh them.

‘If you stand still you go backwards’ What has been the major milestone or turning point of your career? Creating MJ Baker Foodservice from scratch in 1999. When I worked at Booker we all believed that independents had no place in the market place! Malcolm Baker – my husband – then went to work at CDA (now Country Range), made up of successful independent wholesalers. It was very much apparent that independents could not only operate in the market place but also thrive. From that moment on, starting our own business (Malcolm is chairman) held no fear. This year we will achieve a turnover close to £27 million. How do you maintain a work-life balance? It’s very important to me to have the right work-life balance. Technology has made it more difficult to achieve this but I don’t access my work emails on my phone as I wouldn’t switch off. I am, however, a prolific Twitter user and run 14

June 2018

the MJ Baker Foodservice account 24 hours a day. Away from the office I’m a big sports fan and you will often find me with family at rugby and cricket matches. This ranges from club level to international level. We’ve even been to Australia to watch the Ashes. (Jo is pictured with her husband Malcolm and children Rosie and Ellie watching Australia v England in Sydney.) MJ

If you were able to retire tomorrow, how would you spend your time? I enjoy visiting Cornwall so I would spend more time at our house there. What advice would you give someone starting his/her first job? Don’t forget to smile! What type of business would you go into if it wasn’t wholesale? Something in the catering industry as I am a passionate home cook. If you had a million pounds to invest in business, how would you spend it? I would buy a flat in London so I’d have CCM a base to watch cricket at Lords.

Booker base led to launch of own business After four years of working at Nielsen, Jo Baker studied retail management and marketing at Oxford Brookes University as a mature student at the age of 22. She then joined Booker Foodservice as a graduate trainee. During her four years there, she learnt the basic principles of foodservice wholesaling. Jo and Malcolm (her husband) set up MJ Baker Foodservice, a

www.cashandcarrymanagement.co.uk

member of buying group Fairway Foodservice, in 1999. She is the managing director and oversees the 120 employees. MJ Baker Foodservice has grown to become a £27 million turnover business and continues to invest in its staff, fleet of vehicles and 35,000 sq ft premises, which includes office space, warehousing and a freezer.

DISCOVER THE UK’S

No1 MALBEC • Be bold with the UK’s No.1 Malbec now on the Discovery Channel • Growing 25% YoY • Recommended ‘Must Stock’ brand across wholesalers • Discover great POR and drive more cash through your till with Trivento

BOLD DISCOVERIES

Nielsen Total Impulse 52w 24.03.18

[ PRODUCTS & PROMOTIONS ]

The lighter side of NPD from Mars Wrigley

Seasonal RTD

Mars Wrigley Confectionery UK has announced NPD from its power brand Maltesers that sees a combined media spend of £2.5 million. Maltesers Buttons are a bitesize product containing the Maltesers signature crunchy texture within a chocolate button. The new format not only capitalises on the popularity of the Maltesers brand, but also aims to introduce a younger demographic, with the button format being most popular with ages 16-44. The launch includes a £1.3 digitalonly spend to appeal to this target audience, along with out-of-home advertising and eye-catching PoS materials. The second launch has also seen a variation

of the traditional Maltesers format. Maltesers Truffles are an indulgent boxed chocolate predicted to drive incremental growth to the premium gifting occasion and representing a £20 million category sales value opportunity. Boxes of the creamy Maltesers Truffles have an rsp of £1.99 (54g) and £4.99 (200g). The launch is being backed with a £1.2 million marketing spend, featuring digital and in-store support that includes premium PoS materials. Mars Wrigley (01753) 550055

Pernod Ricard has extended the Malibu brand to cater to summer social occasions. Aimed at its target consumers of 1824 year olds, pre-mixed Malibu Piña Colada cans are available to the wholesale and convenience channels now. They replace the Strawberry Kiwi variant. The 250ml cans have an rsp of £1.80, and the launch is being supported by sampling, a social media campaign and influencer activity. “RTDs are growing at 7.8% year-on-year in value within the impulse channel (Nielsen),” points out James Middleton, channel director for impulse. “An on-the-go format will allow us to tap into home cocktail occasions as well as expanding into alfresco moments, making it this season’s muststock for driving summer sales.” Pernod Ricard UK 020-8538 4000

Homestyle appeal

Organic option

Summer sampling

Meadow Vale Foods is expanding its Homestyle range with the launch of two new shredded chicken products. The convenient and versatile Crunchy Shredded Chicken and Salt & Pepper Shredded Chicken are made from whole muscle chicken breast fillets, hand cut into strips and coated. They can either be deep fried or oven baked from frozen. The Homestyle range, which was launched in 2016, has been developed with a crunchy, textured coating and provides an on-trend, fast and simple menu solution for caterers. Meadow Vale Foods (01978) 666100

Nestlé Waters has unveiled additions to the Italian sparking fruit beverage brand Sanpellegrino. The new Sanpellegrino + Tea range caters to the growing consumer base seeking out a more premium low or no-sugar option and has also responded to the trend for organic products, with the new lines forming part of Sanpellegrino’s first organic range. Limone + Tea and Pesca + Tea are made from organic tea extract, fruit juice and a touch of cane sugar, and each contains fewer than 50 calories per 250ml can (rsp £1.20). Nestlé Waters (01923) 897700

Thatchers Cider is hitting the road with an experiential campaign featuring the cidermaker’s new sampling truck. Thatchers Vat 12 can be found at sporting events, festivals and outdoor screenings. In addition, national TV advertising and digital media will be shown throughout the summer. To celebrate the sunshine further, a thermal campaign focusing on Thatchers Haze features adverts that will go live only when the temperature hits a perfect summer day. Sites are in Leeds, Manchester, Birmingham, Liverpool, Bristol and Nottingham. Thatchers Cider (01934) 822862

June 2018

www.cashandcarrymanagement.co.uk

Available in all key pack formats: More to Share Pouch Standard Pouch Treat Bag PMP Treat Bag Singles

£1.3m

MALTESERS® is a registered trademark. ©Mars 2018.a Source. *Nielsen Scantrack Data MAT to 10.2.18

media spend on digital campaign – our biggest online campaign ever!

Two powerhouses join forces Buttons and MALTESERS , the No.4 confectionery brand ®

[ PRODUCTS & PROMOTIONS ]

Festival fever takes on a Mediterranean flavour PROMOTION OF THE MONTH

Iconic wine brand Mateus Rosé, from Sogrape Vinhos and distributed in the UK by Liberty Wines, is celebrating its Portuguese roots and musical heritage with three days of Mateus Rosé Acoustic Picnics at The Big Feastival. The picnics will see the best of Mediterranean food served alongside chilled Mateus Rosé, and accompanying entertainment comes from music by some of 2018’s rising stars. Taking place from 24 to 26 August, outside Kingham in the Cotswolds, the event is the ideal setting to discover new food, drink and music. With Japanese/American jazz artist Emi Meyer already confirmed to play, and a full line-up to be announced this month, the Mateus Rosé acoustic picnics will be a popular festival destination. Mateus Rosé was famously loved by

rock legend Jimi Hendrix so it is fitting to bring Mateus and music together again 50 years after his ’60s heyday. Liberty Wines 020-7720 5350

KP Snacks has extended its Hula Hoops brand with a range aimed at the sharing sector and answering the consumer demand for fuller-flavoured snacking products. Hula Hoops Flavarings are available in 90g bags with an rsp of £1.50, as well as a 55g £1 PMP. The two variants are Tangy Cheese and Salt & Vinegar, selected to serve the family sharing occasion. Flavarings will be supported with a £1 million media campaign in 2018 including in-store and digital activation, plus outdoor media. KP Snacks (0845) 601 7583

Heritage relaunch

Power promotion

Brand update

SHS Drinks is expanding its No.1 sharing cider range with the reintroduction of Merrydown Dry. The heritage cider comes in a 750ml glass sharing bottle with a resealable screw cap (rsp £2.69) and has a label redesign in line with the existing Merrydown Original and Merrydown Crisp Apple variants in the range. Shrinkwrapped trays of six and 12 units are available to the impulse sector. The relaunch of Merrydown Dry is supported by activity including a social media campaign, on-shelf PoS materials and trade mailers. SHS Drinks (01452) 378500

PepsiCo’s ‘Power of One’ campaign marks a summer of football. Featured across three brands, the promotion targets the big night in with on-pack codes offering the chance to win prizes including high-definition TVs, Pepsi glasses and sharing snack bowls. Shoppers need to purchase any two items from the range, which includes selected Pepsi Max formats, Doritos sharing formats, Walkers Tear ‘n’ Share and Walkers Stax, as well as 80g Walkers and Doritos packs. They then register online and enter the on-pack codes. The promotion ends on 31 July. PepsiCo (0118) 930 6666

Hall & Woodhouse has invested £1.25 million in rebranding Badger Beer to reflect the family-owned company’s Dorset heritage. The relaunch is supported with marketing communications spanning digital, social and print, on and off-trade activation and a new website, www.badgerbeers.com. The six-strong range comprises The Legendary Tangle Foot, Fursty Ferret, Golden Champion, Hopping Hare, The Cranborne Poacher and The Blandford Fly, in 500ml glass bottles. Tangle Foot and Fursty Ferret are also available in 500ml cans. Hall & Woodhouse (01258) 452141

June 2018

Strong impact

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Cash & Carry Management in association with the Craft Guild of Chefs announces the

WIN NNERS CCM Chefsâ&#x20AC;&#x2122; Own-Brand Awards

[ CCM CHEFS’ OWN-BRAND AWARDS ]

‘As good as the leading brands’ The top foodservice own-brand products were recognised at an exclusive awards lunch earlier this month. Guests enjoyed a three-course meal prepared by chefs of the future as they learned which lines were judged outstanding in blind tastings by leading chefs. he winners of the inaugural CCM Chefs’ Own-Brand Awards were announced at a prestigious awards lunch at Westminster Kingsway College, London, on 5 June. Hosted by Cash & Carry Management in partnership with the Craft Guild of Chefs – the leading chefs’ association in the UK – the event celebrated the best foodservice own-brand products available from wholesalers. The judging was conducted in blind tastings by Andrew Green, director of operations at the Craft Guild of Chefs; Jason Gordon, general manager of Compass Group’s General Medical Council contract; and Matt Owens, pastry chef at The Grove, a five-star hotel in Watford. Between them, the judges have decades of experience of working as a top chef. The two days of judging were intense, with several of the own-brand products deemed so good that they were awarded a ‘Best of the Best’ accolade. Commenting on the standard, Green said: “I have been involved in judging numerous awards but this is the first time they have been solely focused on own-brand. Quite often you find that own-brand is as good as any leading brand but it is not recognised in the same way. These awards address that by highlighting the best wholesaler own-brands in the market place.” He continued: “People underestimate the value of ownbrand products. If more people gave them an opportunity they would be more than pleasantly surprised.”

Martin Lovell, managing director of Cash & Carry Management, added: “We were delighted with the response to the awards from both the national operators and singlesite wholesalers. “It was very evident during the judging process that these businesses have put a great deal of care and passion into creating their own-brand products – they are excellent quality and, in many cases, highly innovative – and we are pleased to honour the best of these lines through our awards. “What’s more, by providing feedback on each and every product entered, we hope to raise the bar even further in terms of future own-brand development for the benefit of wholesalers, their customers and consumers alike.”

The team of young chefs and waiting staff who expertly prepared and served the lunch for Cash & Carry Management’s guests.

June 2018

www.cashandcarrymanagement.co.uk

[ CCM CHEFS’ OWN-BRAND AWARDS ] Category: Afternoon Tea Winner: Bidfood Premium Selection Persian Love Loaf Cake

Category: Baking Winner: Country Range Dark Chocolate Drops

BEST OF THE BEST

Left to right: Martin Lovell, managing director, Cash & Carry Management; Rachel Cook, category manager bakery & desserts, Bidfood; and Andrew Green, Craft Guild of Chefs.

Category: Antipasto Winner: Mevalco Caramelized Peppers

Left to right: Martin Lovell; Martin Ward, trading director at Country Range; and Andrew Green.

Category: Butchery Joint Winner: Chefs’ Selections by Caterforce Luxury Chicken Kiev BEST OF THE BEST

Left to right: Martin Lovell; David Menendez, founder and sales director of Mevalco; and Andrew Green.

Category: Bakery Winner: Bidfood Premium Selection Cranberry, Sunflower & Pumpkin Seed Bloomer

Left to right: Martin Lovell; Gary Mullineux, purchasing director at Caterforce; and Andrew Green.

Category: Butchery Joint Winner: Country Range Unsmoked Rindless Back Bacon BEST OF THE BEST

BEST OF THE BEST

Left to right: Martin Lovell; Rachel Cook, category manager bakery & desserts at Bidfood; and Andrew Green.

Left to right: Martin Lovell; Martin Ward, trading director at Country Range; and Andrew Green.

www.cashandcarrymanagement.co.uk

June 2018

[ CCM CHEFSâ&#x20AC;&#x2122; OWN-BRAND AWARDS ] Category: Butter, Fats & Spreads Winner: Mevalco Olive Oil

Category: Cheese Winner: Mevalco Rey Silo BEST OF THE BEST

Left to right: Martin Lovell; David Menendez, founder and sales director of Mevalco; and Andrew Green.

Category: Canned Vegetables Winner: Caterers Kitchen Reduced Salt & Sugar Baked Beans

Left to right: Martin Lovell; Les Mohammed, foodservice trading controller at Landmark; and Andrew Green.

Category: Cereals Winner: Bidfood Everyday Favourites Granola

Left to right: Martin Lovell; Gemma Young, category manager impulse & snacking on the go at Bidfood; and Andrew Green.

June 2018

www.cashandcarrymanagement.co.uk

Left to right: Martin Lovell; David Menendez, founder and sales director of Mevalco; and Andrew Green.

Category: Cooking Sauces Winner: Bidfood Everyday Favourites Katsu Curry Sauce

Left to right: Martin Lovell; Kirstie Jackson, own-brand product & project manager at Bidfood; and Andrew Green.

Category: Desserts Winner: Chefsâ&#x20AC;&#x2122; Selections by Caterforce Profiteroles with Chocolate Sauce

Left to right: Martin Lovell; Claire Williams, group marketing manager at Caterforce; and Andrew Green.

[ CCM CHEFS’ OWN-BRAND AWARDS ] Category: Egg Products Winner: Bidfood Premium Selection Rustic Yorkshire Puddings

Category: Frozen Fruit Winner: Country Range Summer Berry Mix

BEST OF THE BEST

Left to right: Martin Lovell; Catherine Ekundayo, category executive for meal occasions at Bidfood; and Andrew Green.

Category: Fish & Seafood Winner: Caterers Kitchen Breaded Wholetail Scampi

Left to right: Martin Lovell; Les Mohammed, foodservice trading controller at Landmark; and Andrew Green.

Category: Fork Buffet Winner: Chefs’ Selections by Caterforce Sweet Potato Falafel

Left to right: Martin Lovell; Martin Ward, trading director at Country Range; and Andrew Green.

Category: Frozen Vegetables Winner: Chefs’ Selections by Caterforce Garden Peas

Left to right: Martin Lovell; Gary Mullineux, purchasing director at Caterforce; and Andrew Green.

Category: Gluten Free Joint Winner: Bidfood Premium Selection Brie & Beetroot Chutney Tart in Kale Pastry BEST OF THE BEST

Left to right: Martin Lovell; Rebecca Woollam, senior art worker at Caterforce; and Andrew Green.

Left to right: Martin Lovell; Catherine Ekundayo, category executive for meal occasions at Bidfood; and Andrew Green.

www.cashandcarrymanagement.co.uk

June 2018

[ CCM CHEFS’ OWN-BRAND AWARDS ] Category: Gluten Free Joint Winner: Whitley’s Pulse Gluten Free Batter Flour

Category: Pizza & Pasta Winner: Caterers Kitchen Penne Rigate

BEST OF THE BEST

Left to right: Martin Lovell; Tony Rogers, managing director of V A Whitley; and Andrew Green.

Category: Gravies & Stocks Winner: Vincent’s Special Gravy Mix

Left to right: Martin Lovell; Tony Rogers, managing director of V A Whitley; and Andrew Green.

Category: Hot Beverages Winner: Country Range Premium Blend One Cup Tea Bags

Left to right: Martin Lovell; Martin Ward, trading director at Country Range; and Andrew Green.

June 2018

www.cashandcarrymanagement.co.uk

Left to right: Martin Lovell; Les Mohammed, foodservice trading controller at Landmark; and Andrew Green.

Category: Potato Products Winner: Bidfood Everyday Favourites Steak Cut Chips

Left to right: Martin Lovell; Ravi Patel, category manager commodities at Bidfood; and Andrew Green.

Category: Preserves Winner: Country Range Assorted Jam Portions

Left to right: Martin Lovell; Martin Ward, trading director at Country Range; and Andrew Green.

[ CCM CHEFS’ OWN-BRAND AWARDS ] Category: Processed Meats Winner: Mevalco Morcón Ibérico Bellota

Left to right: Martin Lovell; David Menendez, founder and sales director of Mevalco; and Andrew Green.

Category: Ready Meals Winner: Bidfood Everyday Favourites Sweet Potato, Chickpea & Spinach Curry

Category: Spices & Seasonings Winner: Country Range Jamaican Jerk Seasoning

Left to right: Martin Lovell; Martin Ward, trading director at Country Range; and Andrew Green.

Category: Wines, Beers & Spirits Winner: Santa Loretta Prosecco

BEST OF THE BEST

Left to right: Martin Lovell; Catherine Ekundayo, category executive for meal occasions at Bidfood; and Andrew Green.

Left to right: Martin Lovell; John Mills, managing director of Landmark; Liah Sacco, marketing executive at Landmark; and Andrew Green.

Category: Sauces & Condiments Winner: Caterers Kitchen Horseradish Sauce

Left to right: Martin Lovell; Les Mohammed, foodservice trading controller at Landmark; and Andrew Green.

Cash & Carry Management and the Craft Guild of Chefs would like to thank all entrants to this year’s CCM Chefs’ Own-Brand Awards. Valuable feedback from the judges on every product will be issued shortly. www.cashandcarrymanagement.co.uk

June 2018

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Talking about new generations

[ SWA CONFERENCE ]

At the Scottish Wholesale Association’s conference, millennials and Generation Z were subjects for discussion, as well as legislation, industry consolidation and technology.

lthough the Scottish Wholesale Association shares many challenges and priorities with the FWD south of the Border, it has many issues that are unique to Scotland, said Kate Salmon, executive director of the Association at its conference in Crieff earlier this month. “We have our own legal system and, of course, our own Government and Parliament. We’re trailblazers – the first to ban smoking in public places, for example, and the first to introduce Minimum Unit Pricing,” she pointed out. “The Scottish Government was the first to commit to a Deposit Return Scheme and the SWA is heavily involved in discussions about its implementation.” Salmon stressed that the Association is moving with the times: “We’re evolving, the industry is evolving, and the role of a strong and healthy trade association has never been more important. “The theme of this year’s conference is ‘Bridging the Gap’ and I see the SWA as being the conduit for bridging the gap between our members, suppliers and other stakeholders – government, policymakers and decision-makers.” Julie Dunn, SWA president and operations director of Dunns Food & Drinks, continued by saying: “It is our job to help our members ensure that they march pace for pace to the rate of change. We work to ensure a healthy,

MUP and trade sales The SWA has welcomed the Scottish Government’s announcement regarding a consultation on Minimum Unit Pricing by wholesalers on trade sales, as well as confirmation that sales to persons for the purposes of their trade do not have to comply with MUP where a premises licence is in place. SWA guidance for wholesalers reflects this position, but the situation would be clarified by an amendment to the Act, said Shona Robison MSP.

Julie Dunn: ‘We work to ensure a healthy, dynamic, relevant Association.’

dynamic, relevant Association through our partnerships with TLT on licensing and 121 HR Solutions on all things employment related. Caledonia Public Affairs continues to assist us in navigating the corridors of Holyrood and we continue to collaborate closely with the FWD and the Scottish Grocers’ Federation on those matters that impact on our members and their customers.” Over the past year, the SWA has focused heavily on foodservice to highlight its growing importance as a route to market and also help promote wholesaling as a career, and shortly the Association will relaunch its Retail Group with JW Filshill’s senior buyer Stuart Harrison as its new chairman. Training remains at the forefront of the SWA’s agenda in the firm belief that investing in individuals strengthens a business. “We need to attract, train and retain wholesale talent. We need to be the destination, not the stopover, on the way to brand central, hence our work this past year with organisations developing links between education and industry. And once we get young people through our doors, we must have the training infrastructure in place to keep them,” Dunn insisted. SWA training sessions have covered subjects such as GDPR, selling skills and effective management, while the mentoring programme “remains one of the Association’s greatest achievements,” said Dunn.

As part of the mentoring scheme, Norman Weir, manager field sales of Coca-Cola European Partners, has been a mentor to Allan McKie, a business manager at Bidfood, for the past year and the relationship is continuing. Weir commented: “As a mentor, you get to support talented people and that support can be vital to them. You get to sharpen your skills too – for example, to listen more intently than usual, a skill that you can take back into your own business. “I can’t recommend the mentoring programme highly enough,” he added.

Norman Weir: ‘I can’t recommend the mentoring programme highly enough.’

A former mentee Stuart Harrison, senior buyer at JW Filshill, was equally effusive: “I never expected the mentoring to be as good as it was. I’ve matured as an individual and I have confidence in my own ability. I’ve been given additional categories, my team has doubled in numbers and I now find myself giving back by helping my team to improve. “I believe that everyone should have a mentor. How many business owners or team leaders have a mentor? I would suggest not many, but what about reverse mentoring? Millennials are reshaping the world we live in – have you thought about bringing in someone in their early twenties to mentor you on latest trends for a younger generation?” The importance of fulfilling the younger generation’s needs and wishes was also highlighted by Jonathan Kemp, commercial director of AG Barr.

www.cashandcarrymanagement.co.uk

June 2018

[ SWA CONFERENCE ]

Baran Ceylan: ‘If you get digital right you can grow your business.’

“Generation Z are really different,” he said. “They are digitally native – they consume media very differently; they respond to edgy campaigns; they are health aware and conscious of sustainability; they are content creators – more entrepreneurial; they CBA (can’t be arsed) if they are not engaged; and they are culturally connected – they want to try new products. “That is why innovation is key,” he continued. “The bulk of our research in the next two to three years will be into this generation, and this month we are launching Street Drinks, which is a very Generation Z-focused product.” JW Filshill is supporting retailers to offer a proposition that fits with consumers’ lifestyle choices, reported retail sales director Craig Brown. “We have to equip retailers better,” he insisted. “For example, food to go is hugely important and is being led by a generational change – millennials don’t have tonight’s meal in their fridge; they are looking to buy it in the convenience store and they are higher spenders than the average shopper. “Fresh and chilled produce is also crucial in our sector,” he said, “and with Minimum Unit Pricing, our customers, which already had an advantage over the multiples with their chilled alcohol sections, now have parity on price.” Independent retailers should also be supported with staff development, merchandising, legal issues and technology, he maintained. The benefits of properly utilising technology were emphasised by Baran Ceylan, digital and ecommerce multichannel lead at Mars Wrigley Confectionery. “If you get digital right, you can not only protect but also grow 28

June 2018

your business – we have found that, with digital, you can increase your sales by over 30% online and 20% offline.” Ceylan pointed out that 82% of retailers use a wholesaler’s website to check prices, 60% to check promotions and 45% to check product availability. When they do shop online, 65% of revenue comes through an internal search. According to Ceylan, there are three key things that wholesalers can do with their website to increase sales: make search more effective by ensuring it is easy for retailers to find the products they want; ensure category pages are representative of sales – check with suppliers and retailers; and make sure the different ways to shop, such as using Scan ID, are clear – Scan ID increases a retailer’s average basket spend by 53%. The current health of the overall wholesale market place was considered by Darren Goldney, managing director of Today’s Group: “The route to market is very competitive. If it consolidates too much, it will be at the expense of the

supplier and the end outlet.” To address this issue, wholesalers and suppliers should be focusing on growth outside the multiples. “For suppliers, this means positively re-evaluating the strategic role and importance of independent wholesale and helping to build its capability, while for wholesalers, it means delivering more effectively against supplier and customer needs with a genuine growth agenda,” he said. Goldney urged suppliers: To offer a margin that drives the right behaviour. Actions that can make this possible, he suggested, include narrowing the case price differential on plain packs versus price-marked packs. To refrain from sending the “cash & carry juggler” to meetings with wholesale executives. “We need the right level of expertise,” he insisted. To balance challenge with incentive. “The independent wholesaler needs to be incentivised,” he maintained. Goldney concluded: “Together we can do so much but it requires real CCM intent and commitment.”

•

• •

Contributors to Booker’s catering growth Booker’s success in boosting its sales to caterers – up from £0.9 billion in 2008 to £1.65 billion in 2018 – was outlined by Stuart Hyslop, managing director, catering & small business (below). Group accounts like Nationwide Caterers Association and Rick Stein are worth £0.2 billion to Booker and are up by 15%, while national chains such as Prezzo and Aramark, which are serviced by Booker’s Chef Direct division, are valued at £0.1 billion and ahead by 18%. However, single-site independents still account for the lion’s share of its sales to caterers at £1.3 billion. Booker’s objective to improve customer satisfaction is currently being met in several ways, including: offering more prepared foods and vegan/vegetarian options. developing and promoting biodegradable products and packaging. holding prices on 250 key lines between April and the end of August.

• • •

www.cashandcarrymanagement.co.uk

•

providing a local ‘power of free’ fund that allows depots to give customers a product to try for free. focusing on availability, delivery, employees, and digital solutions – for example, it is creating a customer app. simplifying processes – for instance, self-scan now accounts for 56% of collect non-tobacco sales. Of the 435,000 catering customers that Booker services in the UK, 35,000 are in Scotland and more than 5,000 of these use the delivery service offered by 21 of the 24 Scottish branches, stated regional director Dave Jones. A key contributor to the wholesaler’s success with caterers in Scotland is fresh meat – sales grew by 19% last year and every butchery manager has, or is working towards, accredited ‘Craft Butcher’ standard. Other growth areas include premium gin (up by 59%), Chef’s Essentials carvery products (+34%) and Malt of the Month (+20%).

• •

GroceryAid is the trading name of the National Grocers Benevolent Fund. A registered Charity Reg. No 1095897 (England & Wales) & SC039255 (Scotland). A company limited by guarantee, registered in England & Wales no 4620683

What are you doing to help grocery people who feel despera desperately isolated? Get involved and show that youâ&#x20AC;&#x2122;re not buying loneliness too. Call 01252 875925 or visit www.groceryaid.org.uk

[ FOOD & DRINKS ON THE GO ]

Quick and convenient choices Food & drinks to go is a category that offers plenty of sales opportunities. Wholesalers should assist their retail customers to stock the fixture to suit multiple need states and occasions – ensuring that the demands from today’s time-poor consumers are met.

ne of the most promising areas for growth, and one that forward-thinking convenience retailers are recognising as a necessary focus, is food on the move – worth £20.7 billion in the UK (MCA) and affecting several convenience-favouring categories. With today’s lifestyles, consumers are now often choosing out-of-home occasions, whether that be breakfast, lunch or replacing full meals with snacking. Add to this the emphasis on health and quality produce, and it’s clear that this is a valuable opportunity for independent stores to tap into. If suppliers can provide wholesalers with the necessary products to enable retailers to offer competitively priced, attractive on-the-go options then the convenience channel is perfectly placed to respond to today’s grab-and-go consumer and profit from current shopper behaviour. The demand for fuss-free, speedy purchasing is fuelling the breakfast mission and shaping supplier innovation, as the success of Mondelez International’s belVita brand attests to. “Breakfast and lunch are all about routine and convenience,” says Susan Nash, trade communications manager. “Food to go has spread into the breakfast category and retailers have a great opportunity to drive sales by offering convenient formats which cater to consumers’ busy lives.” 32

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Breakfast on the go can be an opportunity to trade up – the top reason consumers opt for eating out of home is to treat themselves. Lantmännen Unibake UK caters to the 66.2% of breakfasts containing a bakery item (MCA) with its Schulstad Bakery Solutions, which include All Butter Croissant, Pain Chocolat and Pain Raisin. “A great way to capitalise on this trend is through the introduction of luxury pastries with real fruit toppings, nuts or chocolate, to give customers real indulgence,” says Samantha Winsor, assistant brand manager. “These handheld bakery options are ideal for consumers looking for a quick breakfast option to enjoy en route to work or at their desks. “However, there is still room for more growth, as only 1.1% of total breakfast occasions are eaten on the go (Kantar),” continues Winsor. ”68% of consumers say they don’t eat breakfast out of home more often because it is too expensive (Mintel), but a hot drink and premium pastry is an affordable option, which has contributed to croissants becoming the fourth most popular out-of-home breakfast.” Also recognising the profitability of the ‘treat’ breakfast occasion, Arytza Food Solutions has introduced twocoloured, filled croissants in Raspberry and Hazelnut Chocolate variants.

.. d l u o w u o y w e n We k we’re Growing nearly 3 times faster than the category* We’re Launching a new £3m national advertising campaign - Including TV Running from 4th June - September Stock up now to drive sales *vimto brand value +6.0% vs. total soft drinks category +2.2% mat. nielsen 21.04.18

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[ FOOD & DRINKS ON THE GO ] “With operators increasingly looking for a competitive edge, these colourful twists on the morning classic are ideal for enhancing breakfast or snacking menus,” says Paul Whitely, head of marketing. “Crucially, croissants are bucking the trend for a move away from sweeter snacking treats, and are actually in growth in the snacking category.” Combining convenience with health claims, new Protein Rise from Savsé is the UK’s first cold-press breakfast smoothie. “With over a quarter of adults eating breakfast out of home at least once a week, this shopper mission is becoming an increasingly big opportunity for retailers. This change in shopper behaviour has also been accompanied by a switch in the type of products being consumed, with people moving away from more traditional choices into healthier and less processed options,” says Paul Gurnell, head of sales. Protein Rise responds to this demand, containing a combination of whey, quinoa and cold-pressed fruits and made from 100% natural ingredients with no added sugar. The 250ml bottle has an rsp of £2.99 and the launch is accompanied by a national PR campaign. While catering to the huge rise in demand for protein-rich products, the three-strong Savsé protein range has been formulated and marketed to appeal to the everyday healthconscious consumer. “With a protein content of 10-12g of protein versus the standard 20g present in most protein shakes targeted at females, our new Protein Rise and the existing Protein Punch and Protein Smash products are great for those simply looking to lead a healthy lifestyle,” Gurnell explains.

Lunchtime opportunities Holland’s Pies has repositioned its chilled range to increase its presence as a snacking option with a new look. As well as a redesign, packaging now includes the Holland’s Micro 2 Go logo, highlighting the convenience of the range. The manufacturer has also introduced smaller case sizes to drive distribution in smaller stores. “With our new snacking proposition, smaller case sizes and moving our chilled products into this area, we’ve listened to both retailer and consumer feedback in showcasing what Holland’s is all about,” says Neil Billingsley, commercial director. “As the North’s favourite pie brand we want to build on this success in our heartland and beyond as well as tap into new consumer trends, as savoury pastry is a hugely popular consumer choice worth over £1 billion across supermarkets, bakeries, forecourts and convenience stores (Kantar), and is continuing to grow.” 34

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The increasing demand for something premium and prepared, as the rise of eating at the desk and on the go continues, is also met by Kepak Convenience Foods’ Rustlers Gourmet range. “Rustlers Gourmet taps into the major foodservice trend for gourmet burgers which has filtered through to the high street with the launch of the McDonald’s Signature range,” says UK group sales director Angela Daulby. “The fact that eight out of 10 food-to-go shoppers have a microwave at work, and more than half of all food-to-go shoppers eat their lunch at their workplace, highlights the pivotal role that Rustlers can play in food to go.” For a twist on a conventional hot pie, importer and wholesaler Mevalco offers traditional Spanish frozen empanadas made with bread dough and olive oil. “Made in a bakery in Pontevedra, Galcia – the heart of the empanada tradition – these pies present an unusual and delicious option for catering menus here in the UK,” says founder David Menendez. Increasingly, consumers are looking for quality products made with authentic ingredients, benefiting smaller specialist suppliers to both retail and foodservice who are answering this demand. The choices available as an on-the-go snack have widened considerably, from filling hot meal solutions to lighter fare for throughout the day. Suppliers are taking into account consumer health requirements and a changing taste profile that demands the category continues to innovate and expand. Nature’s Finest Foods’ potted fruit appeals to those looking for natural, healthier products, and the conveniencefriendly 220g snack pot includes a fork. “Consumers are continuing to grow the healthy snacking and food-to-go category. To meet the demand, retailers have increased their offering to include a healthier selection of snacking products, giving consumers nutritional value without compromising on taste,” explains Georgina Edmunds, marketing manager. “Cash & carries need to do the same and offer a variety of healthy snacking products, available to purchase in bulk to give retailers value for money.” The cross-category opportunities of a meal deal can benefit from the might of the soft drinks category – particularly at a time when suppliers are being so proactive. Coca-Cola European Partners has expanded its portfolio this year, as well as investing in innovation and advertising. “It’s worth keeping stocks high to meet increasing demand for drinks on-the-go, with as wide a choice of products as possible, considering a range of different sectors, variants and pack formats to appeal to every consumer taste and occasion,” advises trade communications manager Amy Burgess.

[ FOOD & DRINKS ON THE GO ] “Retailers should also monitor for any new or special-edition products, as well as those being backed by marketing spend, helping to maximise their incremental growth.” The supplier has added to its Monster Energy Ultra range with citrus grape flavour Monster Ultra Violet, designed to appeal to millennials. Its Monster Energy Punch range now includes Pipeline Punch, a passionfruit, pineapple and guava variant. Further activity comes from the Sprite brand’s on-trend Lemon, Lime and Cucumber No Sugar variant, backed by a £3.3 million marketing spend, while the Fuze Tea brand – targeting health-conscious millennials and recently introduced to the UK – is supported by a £4 million marketing campaign.

‘Retailers should monitor for any new or special-edition products, as well as those being backed by marketing spend, helping to maximise their incremental growth’ Amy Burgess, CCEP’s trade communications manager Danone UK has put a marketing investment of more than £2.5 million into the relaunch of its Volvic Touch of Fruit range. Reformulation has resulted in half the sugar in the reduced sugar range, while packaging has been refreshed for both sugar-free and reduced sugar variants. The marketing campaign runs during August and aims to engage millennials with digital and social media activity, as well as out-ofhome advertising and depot and retail activity. Britvic’s Robinsons brand has also focused on consumer health demands, this time targeting parents. The supplier has identified a need for more low-sugar options for children for out-of-home occasions and introduced a standalone dispense unit for Apple & Blackcurrant, Orange and Summer Fruits flavours. “In the majority of foodservice outlets, dispense systems are currently dominated by fizzy drinks,” says Russell Goldman, commercial director of licensed and foodservice. “Through this latest launch, we wanted to create moments for people to enjoy Robinsons on more occasions by providing a healthier solution that all foodservice and licensed outlets can benefit from.”

FrieslandCampina emphasises the need to offer choice appealing to today’s shopper in the food-to-go fixture. “Thanks to a sharp rise in out-of-home, café and retail outlets all offering an increasingly broad variety of lunch options on the high street, competition is fierce and consumers are less likely to be loyal to one channel or outlet. When it comes to convenience, retailers need to ensure shelves are stocked wisely to draw customers in and make the most of this profitable sales opportunity,” says Richard Duplock, Yazoo marketing manager. “Yazoo 400ml bottles are perfect for consumers to grab on the go. Retailers should also look at new flavours, such as Yazoo Limited Edition Choc Mint – as much as 14% of category sales comes from new flavours (IRI).” Mondelez has combined powerbrands Dairylea and Oreo for snack packs that include sweet and savoury flavours. Dairylea Snackers Mini Oreo – which has been launched alongside Dairylea Snackers Mini Chocolate Cookies – contains Dairylea cheese, crackers and Oreo cookie bites. “The snacking kits subcategory is the key driver of growth within processed cheese, growing at 10%, with Dairylea Lunchables having a 71% share and 4% annual growth (Nielsen). Innovation in snacking kits is a growth opportunity in 2018,” advises trade communications manager Susan Nash. Within the food-to-go mission, the convenience channel still relies on confectionery as a strong performer. “Confectionery is a key category, not only because of its scale, but because it is the most impulsive category stocked within convenience. This makes the category really important when it comes to driving incremental food-to-go sales,” says Nash. Nestlé UK & Ireland is currently running an on-pack promotion across Milkybar, Rowntree’s and Smarties brands offering the chance for children to go free on family days out by redeeming codes online. The ‘Kids Go Free’ promotion is supported by a digital media campaign including online CCM advertising and social media.

For further information: Arytza Food Solutions 020-8917 9600 Britvic Soft Drinks (0845) 758 1781 Coca-Cola European Partners (01733) 828000 Danone UK 020-8799 5895 FrieslandCampina (01403) 273273 Holland’s Pies (01706) 213591 Kepak Convenience Foods (01772) 688300 Lantmännen Unibake UK (01276) 850500 Mevalco (0117) 982 6540 Mondelez International (01214) 582000 Nature’s Finest Foods (01753) 245516 Nestlé UK & Ireland 020-8686 3333 Savsé 020-7233 6655

www.cashandcarrymanagement.co.uk

June 2018

* ** *** †

THEY DON’T MAKE ‘EM LIKE THEY USED TO.

WE DO. ORIGINAL TASTE

SINCE 1886

The Coca-Cola family has continued to grow since 1886 • 70% of all cola sales in convenience come from Coca-Cola TM* • Coca-Cola Classic is the most loved and the most consumed cola in GB** • Diet Coke is the undisputed No.1 sugar free cola in GB and has the highest unit rate of sale in convenience*** • Coca-Cola Zero Sugar grew 3.4x faster than Pepsi MaxTM in value in 2017† *

To ﬁnd out more visit www.cokecustomerhub.co.uk or call our Customer Hub 0808 1 000 000

*** †

Impulse Value Sales Nielsen MAT 17.03.18 GB BGS Survey Jan 18 - Feb 18. 12-59yrs *** Nielsen Total GB MAT Value Sales 31.03.18. Nielsen Independents & Symbols - MAT w/e 30.12.17 † Nielsen Independents & Symbols - MAT w/e 30.12.17. Nielsen Independents & Symbols - MAT w/e 30.12.17. *

©2018 The Coca-Cola Company. All rights reserved. COCA-COLA and the CONTOUR BOTTLE design are registered trade marks of The Coca-Cola Company. Rights of Publicity and Persona Rights: Elvis Presley Enterprises, LLC © 2018 ABG EPE IP LLC.

No plain sailing for tobacco

[ TOBACCO, ACCESSORIES & NGPS ]

There are mixed fortunes for tobacco: plain packaging receives a negative first anniversary review and more legislation is set to affect the £14.4 billion category (Nielsen) next year, but good news comes in the form of opportunities in the vaping market.

he subject of tobacco pricing is a focus for suppliers and retailers alike, with consumers looking for value that can no longer be assured through price marking. Now is the time for independent retailers to retain and grow custom through product knowledge and a disciplined adherence to manufacturer rsp, avoiding the temptation to push up margins as a short-term strategy. Imperial Tobacco recommends that wholesalers support their customers through product education and easy-to-shop merchandising, along with responsible pricing. “In our opinion, premium pricing by wholesalers and independents following the implementation of EUTPD II and standardised packaging creates an ever-decreasing circle,” says Paul Coggins, head of key accounts. “They may be making up for drops in volume with increased prices and margins, but it will likely lead to diminishing returns as consumers eventually turn elsewhere – most likely to multiples like supermarkets – to buy their tobacco. Independent retailers have one big advantage – a personal service and the chance to build a genuine relationship with their tobacco-buying customers through excellent category knowledge. Wholesalers should support them in helping to fulfil this ambition.” The manufacturer is assisting retailers to provide value and retain margin through activity such as the £8 price point for L&B Blue. “Repositioning L&B Blue’s pricing means that one of UK tobacco’s most iconic brands is now also one of the most affordable,” says Tom Gully, brand planning manager. To continue supporting legitimate retailers, Imperial Tobacco has developed further measures to combat illicit trade. Along with its dedicated field-based anti-illicit trade team, the supplier has launched its ‘Suspect it? Report it!’ app (SARA). “Illegal tobacco sales in the UK are at an all-time high,” says Coggins. “All members of our sales force have the app loaded onto their tablets, allowing them to collect and process information supplied by our retailers (in total anonymity) more quickly and efficiently than ever. Before SARA launched, we were averaging between 10 and 20 illegal tobacco reports per month. In the month after SARA launched, that number rose to over 100.” 38

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JTI also emphasises the importance of a responsible and attractive pricing structure to support customers. “Price is one of the key factors for existing adult smokers when choosing where to shop for tobacco. Retailers will similarly be driven by price, so wholesalers should also be looking to price competitively,” says Andy Stevens, head of sales. “To ensure they are knowledgeable about the tobacco and vaping category, wholesalers should maintain regular

Plain packaging fails to deliver The Tobacco Manufacturers’ Association (TMA) has revealed data and polling that shows how plain packaging is failing in the UK on the first anniversary after its controversial introduction. Reducing smoking levels was a key objective of the introduction of plain packaging in May 2017 but this is not supported by independent evidence, with recent statistics showing an upturn in smoking levels. Fake plain packaged cigarettes have been found across the UK whilst new polling shows that plain packaging is encouraging millions of smokers to buy from the black market. Plain packaging has also been judged to be failing in the two other countries where it has been introduced: Australia and France. The Smoking Toolkit Study has found that on a threemonth rolling average, from December 2017 to March 2018, smoking rates in England were higher than for the same time last year before plain packaging was fully introduced. Plain packs have delivered a huge benefit to criminals as counterfeiting a single pack design is easier and cheaper, therefore providing extra profit. Counterfeit plain-packaged tobacco products have been seen across the UK. TMA polling also found that smokers are being pushed towards the illicit market by plain packaging. Over a quarter of UK smokers – equivalent to 1.9 million people – say that the measure has made them more likely to buy untaxed tobacco. Giles Roca, director general of the TMA, said: “The recent evidence shows that plain packaging appears to be failing in the UK. It appears not to be delivering the health outcomes it was claimed it would bring while at the same time is proving to be a boon to the black market by encouraging smokers to buy from illicit sources. The Government should recognise that plain packaging is failing and undertake a full and immediate review of this policy.”

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

[ TOBACCO, ACCESSORIES & NGPS ] contact with their local JTI representative so they are kept up to date and understand each product.” Again, the manufacturer has considered retailer needs with activity centred on attractive price points. “The trend towards value continues, and as a result brands such as B&H Blue and Sterling Rolling have seen significant sales growth in the past year,” continues Stevens. “With an rsp of £8.65 (versus Sterling Dual, rsp £9), Sterling Dual SK 20 offers existing adult smokers extra value and extra length, allowing retailers to maximise the profit opportunity presented by the value segment.” The capsule segment now accounts for 13.7% of total cigarette sales in the UK (Nielsen). To tap into this trend, JTI extended its Benson & Hedges Blue offering in April with the addition of a new capsule variant, B&H Blue Dual Superkings. In the hand-rolling tobacco segment, JTI’s Amber Leaf is the UK’s No.1 tobacco brand, with a 32.8% share of the rollyour-own market (Nielsen). According to Imperial Tobacco, a one-stop solution is proving popular with shoppers in the RYO sector. “Recent RYO consumer trends suggest that adult smokers appreciate all-in-one products that combine papers, filters and tobacco, and our Gold Leaf 30g handy pack has proved extremely popular in this regard,” says head of key accounts Paul Coggins. The supplier is introducing related NPD with its new Gold Leaf Ice Pack (rsp £11), available in the independent channel from July. The Ice Pack includes a 30g pouch of Gold Leaf rolling tobacco, 2 x 40 Rizla Regular Green cigarette papers and 72 Rizla ultra-slim menthol filter tips. Tobacco accessories are now worth more than £258.9 million, and merchandising opportunities, as well as NPD, make this a valuable area to prosper in an increasingly restrictive and competitive tobacco category. “It’s crucial that suppliers maximise this opportunity by working with cash & carries and wholesalers to understand shoppers’ needs – and, in turn, enable C&Cs and wholesalers to drive sales of tobacco accessories in-depot,” advises Gavin Anderson, general sales manager at Republic Technologies. “The tobacco accessories market has seen year-on-year growth of 1.6%, with rolling papers leading the way with 6.4% growth and filters with 5.1% growth (IRI).” The company’s NPD has consumer choice and requirements in mind, with premiumisation in the form of Swan Ultra Slim, environmental credentials from Swan Eco filters and value appeal from Swan Kingsize Cigarette Tubes. Supplier support is provided to enable wholesalers to make the most of the innovation and merchandise their category as effectively as 40

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possible. “Our sales team offers expertise and cross-channel category insight to our trading partners, and we’re committed to working with our customers to drive growth within the tobacco accessories category,” says Anderson. Republic Technologies’ recent update to its matches brands includes a new pocket-sized Swan match in vibrant packaging and a contemporary redesign for Swan Vestas packaging that incorporates impactful sustainability messaging. For Cook’s Matches, a partnership with celebrity chef Tom Kerridge is behind a collection of back-of-pack recipes for today’s ‘foodie’ era, while Bryant and May Extra Long matches have also undergone a pack redesign to highlight the product’s lifestyle positioning with imagery reflecting key usage occasions such as lighting candles, open fires, log burners and barbecues. Ship Matches have also been rebranded with a clean and modern design. “The relaunch of our matches range is one of the biggest initiatives to be seen in the UK’s £23 million matches market for decades,” states Anderson. “This move involving some of Britain’s best-known match brands will reinvigorate the category, enabling C&Cs and wholesalers to boost profits by aligning specific match brands to usage occasions.”

STG offers category advice Scandinavian Tobacco Group (UK) is launching its ‘Lock, Stock and Sell’ campaign to educate retailers on the opportunities and trends in the cigar category. “We’re trying to help independent retailers understand the market and manoeuvre through it a little better, explains Jens Christiansen, head of marketing & public affairs (pictured). “By taking time to really understand the category and different products on offer, retailers will be able to recommend a suitable alternative, and even a different segment within tobacco, to avoid missing out on sales – giving them the opportunity to capitalise on the high profit margins that cigars offer.” Cigar sales are fairly stable at present, but Christiansen points out the positive with a qualifier: “Last year was so bad that in comparison it’s just mathematically better,” he says. The volatility of the wholesale sector has had an impact on category performance, with the collapse of P&H derailing availability and affecting statistics. And the news keeps coming of further upheaval in wholesale and retail: “It has become so difficult to operate in retail – you see this consolidation going on and I don’t think it’s the last we’ve seen of it,” he says. On the upside, there is the appeal of cigar 10-packs to attract smokers looking for a lower out-of-pocket cost, as tobacco is still a value-driven sector. However, for the near future Christiansen is anticipating a period of relative calm to take stock and educate before next year’s menthol and Track & Trace legislation sends ripples through the tobacco industry once more.

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

[ TOBACCO, ACCESSORIES & NGPS ] NGP opportunities In-store visibility can be given to Next Generation Products, such as vaping lines. “Retailers can display, advertise and promote vaping products in store. Countertop units are a great way to drive visibility in store, or if space is limited, an impactful back wall display will do wonders helping to showcase the range,” says Sophie Hogg, head of NGP at Imperial Tobacco. The vaping market is growing as consumers move into the category, but Imperial believes that for the independent retail channel to maximise profit potential, it must position itself as a knowledgeable source of advice, as well as sales. “With the total UK vaping market currently over £1 billion (Nielsen), vaping is on-trend and many independent retailers have already done well to capitalise on its popularity. However, most e-vapour sales – around 75% – still stem from online stores or specialist vape shops, as they tend to be seen as the go-to category experts,” comments Hogg. “There’s huge headroom for growth in the more traditional channels – which account for just shy of £160 million – so Imperial is keen to educate and support independent retailers interested in getting involved with the category.” The positive response from Public Health England on the role of e-cigarettes has helped to boost the category; it recently stated that “vaping poses only a small fraction of the risks of smoking, and switching completely from smoking to vaping conveys substantial health benefits”. Imperial’s blu UK continues to expand the category with activity, as well as support for retailers and wholesalers. “We have a pipeline of exciting activity planned for our products in the coming months,” says Hogg. “The category is likely to continue to evolve at pace through 2018 as existing technologies are refined and new ones developed.” Retailer knowledge is at the heart of category growth, especially when it comes to stocking e-liquids. “Offering a compelling range of e-liquids should be an important area of focus for any independent retailer. First and foremost, retailers should ensure they offer the optimal flavour portfolio for their customer base,” advises Hogg. “In terms of range, we recommend that retailers stock at least one open and one closed system from a leading brand. The systems on offer should also be supported by an

extensive range of e-liquids, which currently represent the driving force of value sales within the vaping category, at 39% (Nielsen).” JTI, which offers the Logic vaping system, has also recognised the profit potential of e-liquids with the refillable vaping device Logic LQD. The supplier has now introduced a range of Logic LQD e-liquid bottles (rsp £3.99) to tap into the growth of the area. The five variants, available in both 1012ml/mg and 6ml/mg strength, are Tobacco, Menthol, Cherry, Berry Mint and Strawberry, and the range is already available to wholesalers ahead of its August roll-out to independent, supermarket and convenience channels.

“We are seeing increased demand for lower-strength e-liquids, which now account for more than 23% of the segment (Nielsen),” says Stephane Berset, head of marketing. “The total vaping category has grown by 9.3% in the last two years (Nielsen) and there are now over two million adult vapers in the UK (KTNS).” With the swift category progress, it’s important for wholesalers to ensure that they can offer a full and available range to their customers. “JTI recommends that wholesalers make the most of their vaping offering by stocking a consolidated range of vaping products, including each of the key device types from trusted manufacturers, as well as the accompanying accessories such as atomisers and e-liquids in a range of flavours to meet all retailer needs,” advises Andy Stevens, head of sales. “Wholesalers should be sure to support new product launches in-depot with promotion via product information leaflets and posters provided by the manufacturer.” While the traditional tobacco category may be currently facing some challenges, the profit potential from the rise in vaping does provide a positive for retailers, as long as they access the supplier support offered to merchandise this category effectively. “We expect to see vaping devices and traditional tobacco products co-existing alongside each other and will continue to support wholesalers and retailers alike with quality products and merchandising to help them CCM to maximise profit,” states Stevens.

For further information:

Knowledgeable retailers are the best way to bring new sales opportunities from the £1 billion vaping market (Nielsen) into the traditional retail channel.

June 2018

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blu UK (0800) 0149 355 Imperial Tobacco (0117) 963 6636 JTI (01932) 372000 Republic Technologies (01494) 492233 Scandinavian Tobacco Group UK 020-8731 3400